MIRA
INFORM REPORT
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Report Date : |
27.10.2007 |
IDENTIFICATION DETAILS
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Name : |
UNIFLEX
CABLES LIMITED |
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Registered Office : |
12/ 13, Jyoti
Wire House, Off. Veera Desai Roaad, Andheri (W), Mumbai – 400053, |
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Country : |
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Financials (as on) : |
31.03.2007 (9
Month ) |
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Date of Incorporation : |
14.12.1990 |
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Com. Reg. No.: |
11-59422 |
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CIN No.: [Company
Identification No.] |
U59422MH1990PTC059422 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMU01285E |
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PAN No.: [Permanent
Account No.] |
AAACU0571F |
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Legal Form : |
A
public limited liability company. The company’s shares are listed on the
stock exchanges. |
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Line of Business : |
Manufacturing
and marketing of Elastomeric / PVC/XLPE Cables, Fluroplastic Cables, Optical
Fibre Cables and Jelly Filled Telecommunication Cables. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Maximum Credit Limit : |
USD 1200000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow and delayed |
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Litigation : |
Clear |
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Comments : |
The company has
been declared as a Sick Company in view of erosion of it’s networth. However, the company
has shown substantial improvement in it’s performance for March 2006. It
could wipe out some previous losses. It’s payments are slow and delayed. The company can
be considered for small to mediocre business dealings at usual trade terms and conditions with
some caution, at this stage. |
LOCATIONS
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Registered Office : |
12/ 13, Jyoti
Wire House, Off. Veera Desai Roaad, Andheri (W), Mumbai – 400053, |
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Tel. No.: |
91-22-2674001 / 4002 / 4003 |
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Fax No.: |
91-22-26740600 |
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Head Office : |
11,
Jorawar Bhavan, 93, |
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Tel. No.: |
91-22-22014141/22065151 |
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Factory 1 : |
158-163,
G.I.D.C., Umbergaon – 396 171, District Valsad, |
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Tel. No.: |
91-260-2562412/2563412 |
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Factory 2 : |
Survey
No. 326/1&2, Bhilad-Silvassa Road, Village-Athal, Silvassa, (U.T. of D
& N.H.) – 396 235, Gujarat |
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Factory 3 : |
Survey
No. 327/2, Jai Harsh Industrial Estate, Bldg. No.1, Gr. Floor, Village – Athal,
Bhilad – |
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Branch Office
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Corporate Office : |
12/13, Jyoti Wire House, 23 A, Shah Industrial Estate, Veera Desai
Road, Andheri (W) Mumbai – 400 053 |
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Tel no.: |
26740001 / 2 / 3 |
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DIRECTORS
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Name : |
Mr. Bijay Singh Baid |
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Designation : |
Chairman & Managing Director |
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Name : |
Mr. Jay Kumar Baid |
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Designation : |
Executive Director |
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Name : |
Mr. Ajay Kumar Baid |
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Designation : |
Executive Director |
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Name : |
Mr. Raghunath Rai Kumar |
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Designation : |
Director |
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Name : |
Mr. B L Gupta |
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Designation : |
Director |
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Name : |
Mr. Sanjay Kumar Baid |
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Designation : |
Executive Director |
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Name : |
Mr. M C Bhalawat |
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Designation : |
Company Secretary |
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Name : |
Mr. Suresh Nevatia |
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Designation : |
Additional Director |
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Name : |
Mrs. Savita S Sinha |
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Designation : |
Nominee (IBDI) |
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Name : |
Mr. Denys Firth |
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Designation : |
Additional Director |
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Name : |
Mr. Anish Modi |
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Designation : |
Additional Director |
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Name : |
Mr. Rohit Talwarkar |
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Designation : |
Additional Director |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian
Financial Institutions |
4030212 |
27.79 |
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Banks
Fin. Inst. And Insurance |
76716 |
0.53 |
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Fll’s |
1000 |
0.01 |
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Private
Corporate Bodies |
3220198 |
22.20 |
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International
Investors (FII’s/NRI’s/OCB’s) |
75382 |
0.52 |
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Others |
29803 |
0.21 |
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General
Public |
29803 |
0.21 |
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Total |
14503566 |
100.00% |
BUSINESS DETAILS
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Line of Business : |
Manufacturing
and marketing of Elastomeric/ PVC/XLPE Cables, Fluroplastic Cables, Optical Fibre
Cables and Jelly Filled Telecommunication Cables. |
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Products : |
Electrical Cables v
XLPE Cables v
PVC Cables v
Flouro– Polymer
Cables v
Elastomeric (Rubber)
Cables Telecommunication Cables v
Optical Fiber Cables
[Up to 96 Fibers] - [Armoured / Unarmoured] v
Jelly Filled Cables
[PIJF Cables] [Up to 2400 Switch Board Cables |
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Brand Names : |
UNICAB |
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Exports : |
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Products : |
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Countries : |
Middle East, South
East Asia, Africa, |
PRODUCTION STATUS
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Particulars |
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Installed
Capacity |
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2.300 |
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i) Elastomeric / PVC/ XLPE Cables 1350 CKM capacity of Elastomeric cables
is switchable to 350 CKM XLPE Cables or switchables to 1000 CKM LT PVC XLPE
Cables ii ) Fluoroplastic Cables (Based on Average core of 10 per cable) iii) Optical Fiber Cables (CKM) iv) Jelly filled telecommunication cables (LCKM) (15.42 LCKm Capacity
of jelly filled telecommunication cables is switchable to LT PVC/ |
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500 17.000 49.68 |
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GENERAL INFORMATION
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Customers : |
The
State Electricity Boards, Department of Telecommunication, Defence, Nuclear
Power Corporation, Directorate General of Mines Safety and Navy |
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No. of Employees : |
600 |
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Bankers : |
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Facilities |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Rashmi
Zaveri and Company Chartered
Accountants |
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Address : |
Arham Gr. Floor, |
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Associates |
v
Uniflex Telelink Limited v
Marine Cables & Wires Private Limited v
Aditya Securities Private Limited v
Ganpati Securities Consolatory Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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2750000 |
Equity Shares |
Rs.10/- each |
Rs.27.500millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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14503566 |
Equity Shares |
Rs.10/- each |
Rs.145.036millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 [9 Months] |
30.06.2006 [15 Month] |
31.03.2005 [12 Month] |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
145.036 |
137.000 |
135.600 |
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2] Share Application Money |
15.375 |
0.000 |
0.000 |
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3] Reserves & Surplus |
338.568 |
[110.600] |
[356.100] |
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4] (Accumulated Losses) |
[190..608] |
0.000 |
0.000 |
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NETWORTH |
308.303 |
26.400 |
[220.500] |
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LOAN FUNDS |
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1] Secured Loans |
724.863 |
498.900 |
837.600 |
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2] Unsecured Loans |
0.000 |
3.600 |
5.900 |
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TOTAL BORROWING |
724.863 |
502.500 |
843.500 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
1033.168 |
528.900 |
623.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
467.053 |
483.900 |
539.100 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
188.691 |
41.700
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85.600 |
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Sundry Debtors |
130.686 |
51.500
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82.200 |
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Cash & Bank Balances |
228.921 |
18.000
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25.000 |
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Other Current Assets |
5.272 |
0.000
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0.000 |
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Loans & Advances |
65.148 |
111.500
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112.700 |
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Total Current Assets |
618.718
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222.700
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305.500 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities & Provisions |
(52.603) |
175.700
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218.700 |
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2.000
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2.900 |
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Total Current Liabilities |
(52.603)
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177.700
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221.600 |
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Net Current Assets |
566.115
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45.000
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83.900 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1033.168 |
528.900 |
623.000 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 [9 Months] |
30.06.2006 [15 Month] |
31.03.2005 [12 Month] |
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Sales Turnover |
280.518 |
347.915 |
304.600 |
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Other Income |
32.579 |
66.936 |
0.000 |
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Total Income |
313.097 |
414.851 |
304.600 |
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Profit/(Loss) Before Tax |
35.166 |
(57.135) |
[251.200] |
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Provision for Taxation |
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-- |
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Profit/(Loss) After Tax |
246.637 |
236.987 |
[251.200] |
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Export Value |
36.577 |
2.266 |
N.A. |
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Imports : |
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Raw Materials |
19.840 |
6.863 |
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Stores & Spares |
0.000 |
0.000 |
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Capital Goods |
0.000 |
0.000 |
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Others |
0.000 |
0.000 |
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Total Imports |
19.840 |
6.863 |
N.A |
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Expenditures : |
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Cost of Goods Sold |
0.000 |
0.000 |
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Manufacturing Expenses |
43.846 |
59.830 |
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Administrative Expenses |
27.701 |
47.770 |
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Raw Material Consumed |
203.614 |
250.327 |
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Purchases made for re-sale |
0.000 |
0.000 |
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Consumption of stores and spares parts |
0.000 |
0.000 |
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Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
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Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
431.700 |
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Managerial Remuneration |
0.000 |
0.000 |
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Payment to Auditors |
0.000 |
0.000 |
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Interest |
33.677 |
6.683 |
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Insurance Expenses |
0.000 |
0.000 |
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Power & Fuel |
0.000 |
0.000 |
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Depreciation & Amortization |
0.000 |
0.000 |
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Other Expenditure |
44.387 |
38.024 |
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Total Expenditure |
353.225 |
402.634 |
431.700 |
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QUARTERLY RESULTS
|
PARTICULARS |
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30.06.2007 |
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Type |
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1 Qtr |
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Sales Turnover |
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259.400 |
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Other Income |
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|
8.800 |
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Total Income |
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|
268.200 |
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Total Expenditure |
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|
227.800 |
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Operating Profit |
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|
40.400 |
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Interest |
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|
21.700 |
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Gross Profit |
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|
18.700 |
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Depreciation |
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|
12.600 |
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Tax |
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|
0.100 |
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Reported PAT |
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|
6.000 |
KEY RATIOS
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PARTICULARS |
31.03.2007 [9 Months] |
30.06.2006 [15 Month] |
31.03.2005 [12 Month] |
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Debt-Equity Ratio |
3.84 |
0.00 |
0.00 |
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Long Term Debt-Equity Ratio |
2.97 |
0.00 |
0.00 |
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Current Ratio |
1.73 |
0.51 |
0.72 |
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TURNOVER RATIOS |
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Fixed Assets |
0.42 |
0.32 |
0.38 |
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Inventory |
3.54 |
4.88 |
2.68 |
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Debtors |
4.48 |
4.65 |
3.70 |
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Interest Cover Ratio |
1.05 |
[15.87] |
[2.20] |
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Operating Profit Margin(%) |
22.48 |
[12.98] |
[34.89] |
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Profit Before Interest And Tax Margin(%) |
11.56 |
[27.38] |
[47.41] |
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Cash Profit Margin(%) |
11.37 |
[14.81] |
[56.44] |
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Adjusted Net Profit Margin(%) |
0.46 |
[29.21] |
[68.95] |
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Return On Capital Employed(%) |
4.54 |
[11.39] |
0.00 |
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Return On Net Worth(%) |
0.44 |
[122.84] |
0.00 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets :
- Land (Lease hold
and Free hold )
- Residential
Building
- Plant and
Machinery
- Vehicles
- Equipmment
- Computer /
Printer
- Furniture and
Fixture
History
/ Business
The company was started as a partnership firm - United Cables
- in 1981 to manufacture elastomeric cables and PVC insulated cables under the
Unicab brand name. In 1990, Uniflex Cables was incorporated as a private
limited company under its present name and the existing business was taken over
by the new company. In 1992, the company became a public limited company. The
company is promoted by the Baid group, having experience in textiles, cotton
exports and cables.
At present, the company manufactures PVC/elastomeric cables with an installed
capacity of 2300 km pa. Elastomeric cables are used by Defence, the
ship-building industry, Railways, offshore platforms, the mining industry,
nuclear power plants, etc. XLPE cables are suited for the chemical and
fertiliser industries, underground cabling, etc. Fluoroplastic cables are used
by Defence, the chemical and metallurgical industries, the oil exploration
industry, telephone exchanges, the electronics industry, in aircraft wiring,
etc.
The company has diversified into telephone cables. Uniflex also manufactures
optical fibre cables (OFCs) and jelly-filled telephone cables (JFTCs) in
collaboration with
The company has successfully commissioned both the projects of Optical Fibre
Cables and Jelly Filled Telecommunications Cables. It has also secured an ISO
9002 certification with regard to manufacturing of Optical Fibre Cables and
XLPE & PVC Power Cables. Company has got huge order from Department of
Telecommunication (DOT) and MTNL for JFTC and OFC cables. Company is confident
about the entry of private operators in the basic telecom segment the volume of
business will increase manifold.
The
company’s fixed assets of important value includes Land (Leasehold and
Freehold),
CHANGE IN FINANCIAL YEAR:
The Company has decided to close the present financial year for nine
months period ending 31st March, 2007.
The change in financial year is necessary to match with the closing of
financial year for Income Tax purpose.
REVIEW OF OPERATIONS:
During the 9 months period ending 31st March, 2007 the Company achieved
Sales Turnover of Rs.280.500 millions as against Rs.347.900 millions for 15
months period ending 30th June, 2006. This shows an increase of about 34.38% on
Annualised basis in Turnover. It is heartening to note that Company has earned
operating profit after the gap of 4 years.
With the infusion of necessary funds under Financial Restructuring and
taking note of robust demand in Power Cable sector from Domestic as well as
Export Market, Company has scaled up its operation and targeting Increased
Sales in coming months.
Negotiated Settlement with Banks / FIs:
As reported earlier, during this year your Company went
through major financial restructuring and has successfully completed One Time
Settlement (OTS) with remaining lenders. There was fresh infusion of funds by
ADM Maculus Fund II L.P. and India Debt Management Limited, for restructuring,
working capital and Capex requirement.
Company out of
BIFB:
During the year under review your Company's net worth turned
positive and accordingly approached BIFR Board to discharge the Company, from
the purview of BIFR Act. The Directors
are pleased to inform that by the Order of The BIFR Board dated 6th October
2006, your Company stands discharged from the purview of BIFR Act.
MANAGEMENT DISCUSSION AND ANALYSIS
Forward-Looking Statements:
This report
contains forward-looking statements that covers expectations or projections
about the future, including statements about the Company's strategy for growth,
product development, market scenario, expenditures and financial results are
forward-looking statements.
Forward-looking
statements are based on certain assumptions and expectations of future events.
The Company cannot guarantee that these assumptions and expectations are accurate
or will be realized fully. The Company's actual results, performance or
achievements, could thus differ materially from those projected in any such
forward-looking statements. The Company assumes no responsibility to publicly
amend, modify or revise any forward looking statements, on the basis of any
subsequent developments, information or events.
Overall review:
The Company is
manufacturing both power & telecom cables. The Company markets its cable
under the brand name UNICAB which is a well-known brand in the industry from
past so many years. During the year the power cable industry has shown signs of
significant improvements both Domestically and Externally. The telecom cable
industry has also shown some improvements.
With working capital in hand, Company is showing major turn
around specially in Power and Telecom
Outlook:
The demand for power cable is likely to be strong as the
Electricity Act, 2003 will radically change the power sector landscape. It will
liberalise the generation sector, introduce competition in transmission and
distribution through open access, the mandatory unbundling of SEBs leading to
privatisation, introduction of trading as a separate market function,
preparation of national policies on tariff, rural electrification, renewable
energy development, strengthening of the roles of regulatory commissions,
constitution of appellate tribunal, and stringent anti-theft measures to curb
the incidence of high commercial losses will improve the demand for cables as
well as other ancillary power equipments.
The Central Govt. also plan to create additional power capacity by more
than 100% giving major boost to power distribution sector. Similarly further
investment by large industrial houses in industrial capex will also drive the
demand of power cables significantly.
Financial
Performance with respect to Operational Performance:
The Financial
Statements have been prepared in compliance with the requirements of the
Companies Act and the Accounting Standards issued by the Institute of Chartered
Accountants of India.
Sales for
the financial year 2006-07 for nine months ending March 31, 2007 stand at
Rs.2,80.518 millions which. shows annualized increase of 34.38% as against
Rs.3,47.915 millions in the previous year 2005-2006 (15 months period).
Company has
shown operating profit before depreciation to the tune of Rs.35.166 millions as
against a loss of Rs.57.135 millions in the previous year.
Thus Company
has came out of RED after a gap of 4 years period.
Reserves and Surplus:
The Reserves & Surplus of the Company currently stand at Rs.3,38.568 millions as against Rs.2,311.68 last year.
Through The Years
1981 Established With Elastomeric Division
1990 Incorporated As Uniflex Cables Limited
1993 Power Cable Division
1995 Optical Fiber Cable Division
1996 Jelly Filled (Pijf) Cable Division
1996 Iso 9002 Certified
1999 Iso 9001 Certified
2003 Export House
Promoters
& Management
The
main promoters of the company are Mr. Bijay Singh Baid, Mr. Jay Kumar Baid, Mr.
Ajay Kumar Baid. The Baid group has vast experience in the business of Textile,
Cotton Export and Cable manufacturing / distribution.
Mr.
Bijay Singh Baid, aged 66, has more than 35 years business experience mainly in
the areas of marketing and distribution of textile products. He has about 15
years experience in the administration and management of cable manufacturing
and its marketing to institutional customers like the Defence, Railways,
Shipbuilding Industry, Nuclear Power Corporation, etc.
Mr. Jay
Kumar Baid, aged 45, is a commerce graduate, and has more than two decades
experience in the cable industry. He is responsible for the overall Financial
management of group activities.
Mr.
Ajay Kumar Baid, aged 45, is a commerce graduate, and has more than two decades
experience in the cable industry. He is responsible for the overall
Manufacturing & Technical management of group activities.
The
management of the Company is vested in the Board of Directors which consists of
industrialists, professionals and persons with commercial and administrative
experience. The Chairman of the Company is Mr. Bijay Singh Baid who is also the
Managing Director of the Company.
The day-to-day operations
of the Company are managed by Mr. Jay Kumar Baid and Mr. Ajay Kumar Baid. They
are assisted by a team of experienced and qualified professionals with relevant
experience in their respective fields
Uniflex Cables
Limited is a leading manufacturer of Telecom & Power Cables in
The
company has technical collaboration with :-
- Royle Systems Group,
The
company has been accredited with ISO 9002 Certifications from NV KEMA.
For Export
Enquiries:
Mr. V. K. Baid
Jyoti Wire Industrial Estate, Unit No.3, 2nd
Floor, 23 A, Shah Industrial Estate, Off Veera Desai Road,
Andheri (West), Mumbai - 400 053
Tel No.: 91-22-26730631 / 32
Fax: 91-22-26730365
Email: exports@unicab.com
For Local Enquiries:
Mr. P. K. Suresh
12 & 13, Jyoti Wire House, 1st floor,23 A Shah Industrial Estate, Off Veera Desai Road,
Andheri (West), Mumbai - 400 053
Tel. : 91-22--2674 0001 / 2 / 3
Fax : 91-22-2674 0600
E-mail : info@uniflex.in
uniflex@vsnl.com
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources including
but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.38 |
|
|
1 |
Rs.80.96 |
|
Euro |
1 |
Rs.56.81 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
32 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|