MIRA
INFORM REPORT
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Report Date : |
28.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
SANGHI INDUSTRIES LIMITED |
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Registered Office : |
Sanghi Nagar P O, Hayatnagar Mandal, Ranga Reddy District – 501 511,
Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
14.06.1985 |
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Com. Reg. No.: |
005581 |
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CIN No.: [Company
Identification No.] |
L18209AP1985PLC005581 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDS04608C |
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PAN No.: [Permanent
Account No.] |
AAECS5510Q |
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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 of wide range of leather and plastic products such as
PVC insulation tapes, BOPP tapes, electrical insulation tapes by the brand
name MIRACLE, synthetic foam leather, PVC foam leather cloth under brand name
CLASSIC, self scribbling pads, etc. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 28900000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow by average 45 days |
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Litigation : |
Clear |
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Comments : |
Subject is a well- established company of Sanghi Group, a medium sized
diversified industrial house. Subject has improved its performance in recent years. However, its
payments are slow and delayed. The company can be considered normal for business dealings at usual
tarde terms and conditions. |
LOCATIONS
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Registered Office : |
Sanghi Nagar P O, Hayatnagar Mandal, Ranga Reddy District – 501 511,
Andhra Pradesh |
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Tel. No.: |
91-8415-242215 / 242217 / 242219 / 242232
/ 242233 / 242235 / 242236 |
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Mobile No.: |
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Fax No.: |
91-8415-242239 / 242248 |
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E-Mail : |
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Website : |
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Corporate Office : |
4-3-352, Bank Street, Hyderabad – 500 095, Andhra Pradesh |
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Tel. No.: |
91-40-24756660 – 64 |
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Fax No.: |
91-40-24756755/24756358 |
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E-Mail : |
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Factory 1 : |
Polymer
Division Sanghi Nagar P O, Hayatnagar Mandal, Ranga
Reddy District -–501511, Andhra Pradesh, India. Tel. No.:
91-8415-242215/242217/242219/242232/242233/242235/242236 Fax No.: 91-8415-242239/242248 E-Mail: sanghi@hd1.vsnl.net.in Website:http://www.sanghigroup.com Telex: 0425-6542
RSCO-IN Cement
Division Sanghipuram, Village Motiber, Tal :
Abdasa, Kutch –370655, Gujarat, India Tel.: 91-2831-274131/32/35/36 Fax: 91-2831-274106/15/23 Email: info@sanghi-cement.com |
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Administrative
Office |
Ø 1st
Floor, President House, Opp. C. N/ Vidyalaya, Ambawadi Circle, Ahmedabad-380006, Gujarat, India Tel.: 91-79-26564535/26569939 Fax: 91-79-26560408 Email: sanghicmt@eth.net
Ø
305/306, Tirupati Udyog, J. B.Patel Marg, Goregaon (East), Mumbai – 400051 Tel.: 91-22-28733350/28752199 Fax: 91-22-56980488 Email: sanghicement@hotmail.com |
DIRECTORS
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Name : |
Mr. Ravi Sanghi |
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Designation : |
Managing Director |
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Name : |
Mr. S C Kuchhal |
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Designation : |
Chairman |
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Name : |
Mr. Anand Prakash Sanghi |
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Designation : |
Director |
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Name : |
Mr. P N K Rao |
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Designation : |
Director |
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Name : |
Mr. Sudhir Sanghi |
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Designation : |
Director |
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Name : |
Mr. Sadashiv Sawrikar |
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Designation : |
Director |
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Name : |
Mr. T. M. Jagan Mohan |
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Designation : |
Director |
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Name : |
Mr. B Satyanarayana Murthy |
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Designation : |
Director |
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Name : |
Mr. Aditya Sanghi |
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Designation : |
Director |
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Name : |
Mr. Alok Sanghi |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. V Sesha Sayee |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
AS ON 31.03.2004
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters, Directors and Associate Companies |
88,921,000 |
50.81% |
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Friends and Others |
7,405,000 |
4.23% |
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Mutual Funds |
14,475 |
0.01% |
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Nationalised Banks / Scheduled banks |
900,000 |
0.51% |
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Foreign Collaboration and their Associates |
26,690,000 |
15.25% |
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Non-resident Indians / OCBs |
4,697,825 |
2.69% |
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Other Bodies Corporate |
2,957,700 |
1.69% |
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Public |
43,414,100 |
24.81% |
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Total |
175,000,000 |
100.00% |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of wide range of leather and plastic products such as PVC
insulation tapes, BOPP tapes, electrical insulation tapes by the brand name
MIRACLE, synthetic foam leather, PVC foam leather cloth under brand name
CLASSIC, self scribbling pads, etc. |
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Products : |
v PVC Films and
Sheeting (MT) v Adhesive Tapes and
Leather Cloth (in millions mtr) |
GENERAL
INFORMATION
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No. of Employees : |
500 |
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Bankers : |
v The Lakshmi
Vilas Bank Limited, Hyderabad v State Bank of
Hyderabad, Hyderabad v Bank of Baroda v Bank of
Rajasthan v State Bank of
Saurashtra v Dena Bank v Punjab National
Bank v State Bank of
India v State Bank of
Travancore v Axis Bank
Limited v ICICI Bank
Limited v Induslnd Bank
Limited |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Ankit & Company Chartered Accountants |
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Address : |
4-3-338, RK Estate, Bank Street, Hyderabad, Andhra Pradesh |
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Associates/Subsidiaries : |
v Sanghi Textiles v Sanghi Polysters v Sanghi Spinners v Sanghi
Industries v Sanghi Threads v Sanghi Zip
Fastners v Sanghi Filaments v AGA Publications
v Sparsh
Communications |
CAPITAL STRUCTURE
AS ON 31.03.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
550000000 |
Equity Shares |
Rs. 10/- Each |
Rs. 5500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
304821300 |
Equity Shares |
Rs. 10/- Each |
Rs. 3048.213 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
3048.200 |
3028.200 |
4341.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2737.800 |
1188.100 |
(3.700) |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
5786.000 |
4216.300 |
4337.400 |
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LOAN FUNDS |
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1] Secured Loans |
9784.200 |
10231.600 |
9590.100 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
9784.200 |
10231.600 |
9590.100 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
15570.200 |
14447.900 |
13927.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
13293.900 |
12868.500 |
8724.400 |
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Capital work-in-progress |
407.900 |
218.100 |
5158.200 |
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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 |
519.700
|
442.100 |
300.700 |
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Sundry Debtors |
85.300
|
44.000 |
141.300 |
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Cash & Bank Balances |
814.600
|
726.000 |
41.100 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
1383.000
|
810.800 |
317.800 |
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Total
Current Assets |
2802.600
|
2022.900 |
800.900 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
798.900
|
693.700 |
858.000 |
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Provisions |
232.200
|
81.800 |
29.900 |
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Total
Current Liabilities |
1031.100
|
775.500 |
887.900 |
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Net Current Assets |
1771.500
|
1247.400 |
(87.000) |
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MISCELLANEOUS EXPENSES |
96.900 |
113.900 |
131.900 |
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TOTAL |
15570.200 |
14447.900 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
8586.700 |
6051.300 |
4262.900 |
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Other Income |
76.700 |
417.400 |
250.900 |
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Total Income |
8663.400 |
6468.700 |
4513.800 |
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Profit/(Loss) Before Tax |
1597.600 |
923.300 |
51.400 |
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Provision for Taxation |
169.900 |
107.700 |
0.600 |
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Profit/(Loss) After Tax |
1427.700 |
815.600 |
50.800 |
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Export Value |
3350.000 |
NA |
NA |
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Expenditures : |
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Manufacturing Expenses |
682.200 |
648.600 |
430.700 |
|
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Administrative Expenses |
2249.200 |
1781.400 |
1445.100 |
|
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Raw Material Consumed |
445.300 |
379.000 |
251.600 |
|
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Salaries, Wages, Bonus, etc. |
160.300 |
148.900 |
133.600 |
|
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Power & Fuel |
1579.400 |
1243.500 |
777.500 |
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Depreciation & Amortization |
758.200 |
506.200 |
460.100 |
|
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Other Expenditure |
1191.200 |
837.800 |
963.800 |
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Total Expenditure |
7065.800 |
5545.400 |
4462.400 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2008 (1st
Quarter) |
|
Sales Turnover |
|
|
2239.400 |
|
Other Income |
|
|
28.800 |
|
Total Income |
|
|
2268.200 |
|
Total Expenditure |
|
|
1786.800 |
|
Operating Profit |
|
|
481.400 |
|
Interest |
|
|
194.100 |
|
Gross Profit |
|
|
287.300 |
|
Depreciation |
|
|
204.300 |
|
Tax |
|
|
9.400 |
|
Reported PAT |
|
|
73.600 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
2.00 |
2.32 |
2.20 |
|
Long
Term Debt-Equity Ratio |
1.99 |
2.28 |
2.14 |
|
Current
Ratio |
2.53 |
1.42 |
0.57 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
0.58 |
0.51 |
0.45 |
|
Inventory |
17.86 |
16.29 |
14.62 |
|
Debtors |
132.82 |
65.31 |
28.03 |
|
Interest
Cover Ratio |
3.15 |
3.31 |
1.10 |
|
Operating
Profit Margin(%) |
36.08 |
30.22 |
23.84 |
|
Profit
Before Interest And Tax Margin(%) |
27.25 |
21.86 |
13.05 |
|
Cash
Profit Margin(%) |
25.46 |
21.84 |
11.98 |
|
Adjusted
Net Profit Margin(%) |
16.63 |
13.48 |
1.19 |
|
Return
On Capital Employed(%) |
15.70 |
9.40 |
4.07 |
|
Return
On Net Worth(%) |
34.38 |
31.87 |
2.95 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was incorporated on 14th June 1985 at Ranga Reddy
District in Andhra Pradesh having company registration number 5581.
The group operates and based in Sanghi Nagar, a self-contained
industrial township, 28 Kms from Hyderabad.
Apart from the group’s manufacturing facilities Sanghi Nagar contains a
fullfledged housing complex and health care facilities for its employees. Similar facilities and amenities exist at
the other Sanghi townships at Gujarat (Cement Project) and Assam (Paper
Project)
The Sanghi Group is promoted by Shri Ramsharan Sanghi presently Chairman
of the group and his sons, Shri Anand Prakash Sanghi, Shri Sudhir Sanghi, Shri
Ravi Sanghi and Shri Girish Sanghi.
In 1993, Subject was diversified into manufacturing of rigid PVC film
and fine synthetic fabrics, which not only have versatile applications in
domestic market but also have global appeal for the export market. Subject has the highest capacity utilisation
rates and profit margins in the leather industry and has very low power
consumption.
Subject manufactures PVC films /
sheetings, adhesive tapes and leather clothing. Ram Sharan Sanghi is the Chairman
and Ravi Sanghi is the Managing Director. The manufacturing units are located
in Kutch, Gujarat and Ranga Reddy district, Andhra Pradesh.
The company has diversified into cement production by setting up a
2.61-mtpa cement project in Kutch district, Gujarat. This plant is being set up
in collaboration with M/s Fuller International Inc, US, and its Indian
associate, Fuller KCP. The total cost of the project was estimated at Rs 815
cr. The trial runs for Clinker was started during April,2002. During 2000-01
the Work on Grinding Unit for Cement was implemented and the operations is
expected in the third quarter of 2002
MANAGEMENT DISCUSSION
AND ANALYSIS
Business Environment
The Union Budget for 2007-08 has announced an improvement in GDP growth rate
from 7.5% in 2004-05 to 9% (Quick Estimate) in 2005-06 and to 9.2% (Advance
Estimate) in 2006-07. During this three-year period, there is acceleration in
growth rate in manufacturing sector from 8.7% to 9.1% and further to 11.3% in
2006-07.
The cement industry is growing simultaneously with the growing
infrastructure and real estate industry. According to the CMA data, cement
consumption has been growing consistently over last five years. In FY-07, on an
all India basis, cement consumption has grown by 9.94% over FY 06 matched by
9.52% growth in cement production. In the state of Gujarat, the cement
consumption has grown by 10.45%. The capacity of the cement industry at the end
of financial year 2007 was around 166 mn tonne after capacity addition of 5.4
mn tonne during the financial year 2006-07. None of these capacities have been
added in the Gujarat State.
Review of Performance
Highlights:
v Production of cement up by 32 % at 2.4 million tonnes
v Sales of cement up by 34 % at 2.42 million tonnes
v Exports jump by 75% at Rs.2824.200 Millions
v Total Sales grew by 42% to Rs.8586.800 Millions
v
PBDIT for the current year at Rs.3097.900 Millions as
against Rs.1828.800 Millions in the previous year
Net profit after tax up by 75% from Rs.815.600 Millions to Rs.1427.700 Millions
v Capex of Rs.2400.000 Millions for implementing the first phase of Captive Thermal Power Plant of 60 MW for cost effective power supply
v Capex of Rs.9100.00 Millions proposed to increase the clinker capacity by 3.3 mtpa and cement capacity by 5 mtpa
v Capex of Rs.3500.000 Millions proposed for second phase of power plant and distribution terminals New thrust on Corporate social and safety responsibility
Production
The Cement mills have produced 2.40 mn tonne of cement at a 92% capacity
utilization and the Clinker Plant has produced 2.51 mn tonne of clinker at a
capacity utilization of 101 % during the financial year ended on 31st March,
2007. The corresponding capacity utilization of Cement and Clinker Plant for
the previous year ended on 31st March, 2006 was around 70% and 100%
respectively.
Exports:
During the year, the Company has achieved an Export Turnover of about
Rs.3350.000 Millions Valuewise, FY-07
cement exports have recorded a jump of 75% over FY 06. The cement dispatches in
the export market have increased by 51% in FY 07 over FY 06. In FY 07
realisation per tonne in export market for company's cement sales has seen an
increase by 15% over FY 06. The sales mix in exports has also moved in favour
of cement from clinker, which offers improved margins.
The company has exported 1.04 mn tonne of cement in FY 07 against the industry figure of 5.87 mn tonne. With these figures, the company shares 17.7% of the cement industry's export in FY 07.
Based on the sizeable exports of the Company, Directorate General of
Foreign Trade, Government of India has upgraded the company's status from
"Export House" to "Trading House".
The company is constantly exploring new international markets for increase in
exports.
Future Outlook
The Company's thrust would be on optimizing the contribution from
both the markets by fine balancing between exports and domestic markets The
company continues to see buoyant demand from the International markets. It is
one of the largest exporters of cement to Middle East Markets. It continues to
explore many new markets during the year.
The announcement of increased spending by the Government on
infrastructure and development of real estate industry is expected to fuel the
demand for the cement industry in domestic market. Even though 65-70 million
tonne new capacity has been announced, actual capacity creation may fall short
of announced capacity, as per the analysts reports. Orders for plant and
machinery have been placed for 50 million tonne new capacity. Of these only
about 4-5 million tonnes is announced in Gujarat.
According to the news reports in Economic Times, greenfield capacity
creation in cement is facing delays due to hurdles in land acquisition and
civil construction. Greenfield accounts for one-third of incremental all India
capacities. Brownfield expansions are on schedule, as there is a rush to create
supply as the industry's profit is at a historical high.
Analysts have reported that their detailed project-wise analysis suggests that
the industry deficit would actually increase in FY09, even if all planned
capacities were to come on schedule.
Given the strong demand scenario and stable price outlook, the company hopes to
achieve good performance in the current year too.
Expansion and
Capex
The company is already implementing the 1st phase of 60 MW captive thermal
power plant. The company is also implementing a cement offloading and packing
terminal at Marlkhi and Dahez in Gujarat. These facilities are expected to be
commissioned by June 2008.
The company proposes to set up an additional kiln at the same location
for 10000 tpd. It will also set up a grinding capacity of 5 million tonnes p.a.
The company also proposes to set up another 60 MW captive thermal power plant in 2nd phase to support the expanded capacity. The company proposes to set up three more terminals in Western Coast for efficient distribution of the cement. These facilities are expected to be commissioned by March 2009.
It is in trade
terms with
Ø Amit Plastics
Ø Manjunath
Chemicals
Ø Marudhar Chemicals
Ø Kamal Sizing
Ø Naina Glues and
Chemicals Limited
Ø Padmanabh Packing
Ø Mittal Polymers
Ø P. R. Corporation
Ø Rangsangam
Ø Sathavahana
Packaging Private Limited
Ø Satyam
Plasticizers and Chemical Industries
Ø Shyam Printing
Corporation
Ø Universal
Packaging Industry
Ø Vibhachem Products
Private Limited
The company’s fixed assets of important values include Land, Buildings,
Plant and Machinery, Electrical Installation, Furniture and Fixtures, Office
Equipment, Vehicles, Fire Fighting Equipment, Lab Equipment, Temple, CWIP and
Computers.
AS PER WEBSITE DETAILS
Sanghi Cement is
produced at the world’s largest single-stream cement plant located at
Sanghipuram in the Abdasa Taluka of Kutch district in Gujarat. This fully
automated plant with state-of-the-art technology from Fuller International,
USA, has revolutionized the way cement is produced and has several firsts to
its credit
First plant in
India to install cross belt analyzer for micro analysis of Limestone to ensure
consistent superior quality of cement.
First plant in
India to install stacker and reclaimer for uniform homogenizing of raw
materials.
First plant in
India to have an alkali bypass system ensures low alkali content in cement and
hence eliminates alkali aggregate reactions to safeguard against cracks in the
cement paste
First plant in the
country to have 100% robotic control systems to ensure consistently superior strength
and quality of operations.
Only Indian Company
to achieve Export House status in the first eight months of commencement of
operations
Cement grade high
quality captive limestone mines with mining through latest eco-friendly and
state-of-the-art surface miners.
Production capacity
of 2.6 MTPA.
First company in
India to have full fledged infrastructure, from day one, such as 58 MW power
plant, own jetty to cater the needs of sea route transportation, desalination
plant and road network.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.43.73 |
|
UK Pound |
1 |
Rs.80.57 |
|
Euro |
1 |
Rs.64.29 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
|