MIRA
INFORM REPORT
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Report Date : |
22.12.2008 |
IDENTIFICATION DETAILS
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Name : |
RAI SAHEB REKH CHAND MOHOTA SPG AND WVG MILLS LIMITED |
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Registered Office : |
63, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
10.10.1946 |
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Com. Reg. No.: |
005261 |
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CIN No.: [Company
Identification No.] |
L99999MH1946PLC005261 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NGPT01097F |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
stock Exchange. |
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Line of Business : |
Manufacturer of Yarns and Fabrics |
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 1800000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade
relations are fair. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Block No. 15, 3rd Floor, Gate No. 2, |
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Tel. No.: |
91-22-22084711/ 22084713 |
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Fax No.: |
91-22-22081556 |
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E-Mail : |
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Corporate Office : |
Ram Mandir Word, Hinganghat-442301, District Wardha |
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Export Office : |
Export Office 309, |
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Tel. No.: |
91-22-28388571/ 28345102 |
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Fax No.: |
91-22-28388572 |
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Factory : |
The R.S.R Mohota Spg and Wvg. Mills Limited Post Box No. 1,
Hinganghat-442301, |
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Tel. No.: |
91-7153-244282/ 244039 |
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Fax No.: |
91-7153-244753 |
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Factory : |
The R.S.R Mohota Spg, and Wvg. Mills Limited, Post Box No. 1,
Hinganghat-442301, |
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Tel No.: |
91-7153-244282 |
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Fax No.: |
91-7153-244753 |
DIRECTORS
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Name : |
Dr. Ranchhoddas Mohota |
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Designation : |
Chairman |
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Name : |
Mr. Vinodkumar Mohota |
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Designation : |
Managing Director |
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Name : |
Mr. Vinay Kumar Mohota |
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Designation : |
Director |
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Name : |
Mr. S B Singhvi |
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Designation : |
Director |
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Name : |
Mr. C J Thakur |
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Designation : |
Director |
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Name : |
Mr. G G Singhee |
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Designation : |
Director |
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Name : |
Mr. Pavan Poddar |
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Designation : |
Director |
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Name : |
Mr. Suresh Rathi |
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Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2008
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Names of Shareholders |
No. of Shares |
Percentage |
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Promoters |
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Indian |
3082765 |
73.96 |
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Bodies Corporate |
520760 |
12.49 |
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Indian Public |
564905 |
13.55 |
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Total |
4168430 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Yarns and Fabrics |
PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
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Cloth Looms Shutle |
No. |
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288 |
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Airjet |
No. |
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36 |
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Yarn Spindles |
No. |
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37728 |
GENERAL INFORMATION
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No. of Employees: |
4000 |
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Bankers : |
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State Bank of ·
Bank of |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Batilboi and Purohit Chartered Accountant |
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Address : |
Mumbai |
CAPITAL STRUCTURE
As on 31.03.2008
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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7000000 |
Equity Shares |
Rs. 10/- each |
Rs. 70.000 Millions |
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300000 |
Non-Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 30.000 Millions |
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Total |
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Rs. 100.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4168430 |
Equity Shares (Of the above 204000 Equity Shares of Rs. 10/-
each, fully paid have been issued to vendors without payment being received
in cash and 2057420 Equity Shares allotted as fully paid up Bonus Shares out
of capitalization of Revaluation Reserve) |
Rs. 10/-
each |
Rs. 41.684
Millions |
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Less: Calls in arrears (by other than
Directors Allotment Money) |
Rs. 0.008
Million |
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First and Final Call Money |
Rs. 0.011
Million |
Rs. 0.019
Million |
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Add: Forfeited Shares (Amount originally
paid) |
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Rs. 0.222
Million |
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236000 |
10% Non-Cumulative Redeemable Preference
Shares |
Rs. 100/-
each |
Rs. 23.600
Millions |
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60000 |
8% Non-Cumulative Redeemable Preference
Shares |
Rs. 100/-
each |
Rs. 6.000
Millions |
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Total |
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Rs. 71.487 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
71.487 |
71.487 |
71.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
306.037 |
333.836 |
317.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
377.524 |
405.323 |
388.700 |
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LOAN FUNDS |
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1] Secured Loans |
651.857 |
450.736 |
350.000 |
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2] Unsecured Loans |
135.564 |
125.884 |
91.900 |
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TOTAL BORROWING |
787.421 |
576.620 |
441.900 |
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DEFERRED TAX LIABILITIES |
37.736 |
35.166 |
0.000 |
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TOTAL |
1202.681 |
1017.109 |
830.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
665.901 |
398.786 |
377.300 |
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Capital work-in-progress |
51.720 |
94.451 |
65.000 |
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INVESTMENT |
24.409 |
21.803 |
18.000 |
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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 |
335.399
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303.562 |
195.800 |
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Sundry Debtors |
251.137
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194.027 |
213.000 |
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Cash & Bank Balances |
6.520
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12.782 |
3.700 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
116.696
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147.093 |
103.000 |
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Total
Current Assets |
709.752
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657.464 |
515.500 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
261.537
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155.395 |
143.500 |
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Provisions |
0.000
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0.000 |
1.700 |
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Total
Current Liabilities |
261.537
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155.395 |
145.200 |
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Net Current Assets |
448.215
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502.069 |
370.300 |
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MISCELLANEOUS EXPENSES |
12.436 |
0.000 |
0.000 |
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TOTAL |
1202.681 |
1017.109 |
830.600 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
1548.216 |
1266.153 |
1635.800 |
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Other Income |
6.077 |
7.543 |
5.700 |
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Total Income |
1554.293 |
1273.696 |
1641.500 |
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Profit/(Loss) Before Tax |
[9.651] |
31.722 |
10.300 |
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Provision for Taxation |
2.800 |
3.414 |
1.000 |
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Profit/(Loss) After Tax |
[12.451] |
28.308 |
9.300 |
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Imports : |
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Stores & Spares |
1.907 |
1.272 |
NA |
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Capital Goods |
135.147 |
55.707 |
NA |
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Total Imports |
137.054 |
56.979 |
NA |
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Expenditures : |
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Cost of Goods Sold |
392.791 |
244.162 |
0.000 |
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Raw Material |
0.000 |
0.000 |
1008.200 |
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Excise Duty |
0.000 |
0.000 |
75.000 |
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Power and Fuel Cost |
0.000 |
0.000 |
141.500 |
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Manufacturing Expenses |
858.302 |
787.268 |
110.100 |
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Employees cost |
0.000 |
0.000 |
138.000 |
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Selling and Administration Expenses |
0.000 |
0.000 |
57.800 |
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Miscellaneous Expenses |
0.000 |
0.000 |
10.300 |
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Interest and Financial charges |
0.000 |
0.000 |
29.600 |
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Administrative Expenses |
90.181 |
65.412 |
0.000 |
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Financial Charges |
44.907 |
30.086 |
0.000 |
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VRS Expenses Written -off |
0.429 |
0.000 |
0.000 |
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Payments and Benefits to Employees |
138.359 |
132.283 |
0.000 |
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Repairs and Maintenance |
8.780 |
9.873 |
0.000 |
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Increase/(Decrease) in Finished Goods |
[19.856] |
[75.731] |
2.000 |
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Depreciation & Amortization |
50.051 |
48.621 |
58.700 |
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Total Expenditure |
1563.944 |
1241.974 |
1631.200 |
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QUARTERLY RESULTS
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PARTICULARS |
|
30.06.2008 1st
Quarter |
30.09.2008 2nd
Quarter |
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Sales Turnover |
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423.700 |
346.300 |
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Other Income |
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0.600 |
0.000 |
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Total Income |
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424.300 |
346.300 |
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Total Expenditure |
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404.100 |
339.900 |
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Operating Profit |
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20.200 |
6.400 |
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Interest |
|
13.100 |
12.800 |
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Gross Profit |
|
7.100 |
[6.400] |
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Depreciation |
|
12.900 |
12.800 |
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Tax |
|
0.000 |
0.000 |
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Reported PAT |
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[5.800] |
[19.200] |
KEY RATIOS
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PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
[0.80]
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2.22 |
0.57 |
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Net Profit Margin (PBT/Sales) |
(%) |
[0.62]
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2.51 |
0.63 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
[0.70]
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3.00 |
1.15 |
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Return on Investment (ROI) (PBT/Networth) |
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[0.03]
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0.08 |
0.03 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.78
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1.81 |
1.51 |
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Current Ratio (Current Asset/Current Liability) |
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2.71
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4.23 |
3.55 |
LOCAL AGENCY FURTHER INFORMATION
History:
Established in 1898 as a proprietary concern, Rai Saheb Rekchand Mohota
Spinning and Weaving Mills was eventually converted into a partnership firm. To
obtain a corporate status, the mill was converted into a private limited
company on 10 Oct.'46. Subsequently, on 28 Feb.'89, it became a deemed public
limited company.
The company's mill started operations with an installed capacity of 12,000
spindles and 200 looms to manufacture cotton yarn and fabric. The capacity of
the mill has been upgraded gradually to the current 59512 spindles.
The company came out with a public issue in Feb.'95 to part-finance the
modernisation of the preparatory and spinning sections in its textile mill at
Hinganghat and to meet the long-term working capital requirements.
During 1997-98, the company increased its yarn spindles by 6160 Nos
there by taking its total capacity to 58644 Nos. The company is continously
modernising its operations in order to enhanced productivity and profitability
in the years to come.
The capacity of the Wani Unit has been expanded by installation of 5040 ring
spindles during 1999-2000 and it also undertook quality improvement by
installation of latest yarn preparatory machines along with Schlafhorst
Autoconer.
During 2000-01,the company undertook the installation of latest yarn
preparatory machines viz., 1 no Laxmi Rieter Line, 3 nos LC300 Cards, 2 nos 851
RSB Drawframes, 1 no LF1400A LMW speed frames and 7 nos LR6/S Ring Frames
alongwith Schlafhorst 338 Autoconer. Apart from it, 1 no Ingersoll Rand make
compressor with ultratroc make Air Dryer, 16 cylinder 78" Drying Range
with Bowl padding mangle were also installed.
OPERATIONS
During the financial year, the Company's turnover has increased to Rs.1548.200
Millions from Rs.1266.200 Millions in the corresponding previous year mainly on
account of increased export of yarn as Merchant Exporter. However, company has
incurred Net loss of Rs.124.51 due to substantial increase in raw material
price mainly VSF, Cotton, Stores spares cost and continuous hike in interest
rate both on Working capital and term loan. Again, due to unprecedented
strengthening of rupee against dollar, export demand dwindled which in turn
resulted in flood of supply in domestic market resulting in lower realization.
EXPORTS
The Company's export during the year calculated on FOB basis amounted to
Rs.626.600 Millions as against Rs.340.600 Millions in the immediately preceding
year, registering robust growth of 80%.
CURRENT AND FUTURE OUTLOOK
Though 2007-08 was a challenging year for the Company, but current year 2008-09
seems to be more challenging and difficult one. A host of domestic as well as
global factors viz. high inflation, spiralling crude prices, high interest
rates, slow down in US as well as in India too, tremendous increase in raw
material price viz. Cotton, PSF, increase in Dyes and Chemical Cost and power
tariff, increased wages due to inflation, volatility in foreign currency
exchange rates vis-a-vis Indian rupees etc. are going to put pressure on
Company's performance. In such an unpredictable environment, it is very
difficult on the Company's part to make a decision regarding further expansion
or downsizing the ongoing expansion project under TUFS at Burkoni.
MODERNISATION /EXPANSION UNDER TUFS
The Company has incurred capital expenditure of Rs.384.367 Millions on
establishing a new state of the art Airjet Weaving Unit at village - Burkoni,
Tab. Hinganghat and for modernization / upgradation of existing Hinganghat unit
and it has been financed through internal accruals and term loan to the extent
of Rs.239.800 Millions taken from SBI & BOI under TUFS.
CDM PROJECT ACTIVITY
In the previous year, company has installed Biomass (Rice Husk) fed boilers in
view of availing Carbon Credit by meeting the requirements of CDM (Clean
Development Mechanism) of the UNFCCC. The CDM is a global mechanism under the
Kyoto Protocol that enables the project developer to receive Carbon Credit
towards their Green House Gas Emission reduction initiatives. This project
activities is almost completed and due for registration. The company hopes to
generate substantial revenue in future from sale of CER Certificate.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE, DEVELOPMENT and
OUTLOOK
The importance of the Indian textile industry can be gauged from the fact that
it contributes about 14% to industrial production, 4% to the GDP, and 17% to
the country's total export earnings and provides direct employment to over 35
Million.
In weaving, decentralized powerloom sector dominates over organized sector. In
the decentralized powerloom sector, there are about 2.100 Millions powerlooms
distributed over nearly 0.464 Million unit. On the other side, the no. of looms
in the organized sector has declined from 0.123 Million in March, 2000 to 0.056
Million in December, 2007.
During 2006-2007, the total production of cloth (by all sectors i. e.
mill, powerlooms, handlooms, hosiery, and khadi, wool and silk) was 53,389 ran.
sq. mtrs. registering an annual growth of 4.5% during the last five years.
During 2007-08, the production is expected to reach 57,491 mn. sq. mtrs. This
has resulted in improved per capita domestic availability of cloth in the
country. During 2004-05 the per capita availability of cloth was 32.63 sq.
mtrs. and it is expected to touch 45 sq. mtrs. during 2007-08.
According to the WTO data,
The government, through it's 'flagship' TUF Scheme, hopes to achieve a growth
rate of 16% by providing higher incentives to segments that have a larger
potential for growth, like garmenting, technical textiles, and processing. The
MoT is also very aggressively promoting the 'Scheme for Integrated Textile
Parks (SITP)'. So far 30 Parks, with an estimated project cost of Rs.28934.200
Millions, have been approved with the government's assistance of Rs.10547.600
Millions. The projected investment in these parks is Rs.152580.000 Millions and
estimated annual production is Rs.240240.000 Millions. When fully operational,
these parks are expected to generate direct and indirect jobs for 0.545
Millions persons. These parks are expected to be developed by March 2009. All
these measures are aimed at achieving the export target of 55 billion USD by
2012.
OPPORTUNITIES and THREATS:
The Chinese Textile Industry which is currently going through a critical time
on account of strong Yuan against US Dollar, rising labour and raw material
cost, acute power shortage and increase in power tariff, reduction in the rates
of export incentive etc. may provide an opportunity to
However, substantial jump in raw material price viz. Cotton, USF and PSF,
tremendous hike in interest rates power shortage and high inflation is playing
a spoilsport and may dilute
SEGMENTWISE PERFORMANCE
The company has only one business segment i.e. 'Textiles'.
RISK AND CONCERNS:
Rising input cost viz. raw material and power, unprecedented interest cost rise.
Surplus spinning capacity, poor infrastructure, uncertainly about continuation
of export incentives, high cost of labour and Government limitations to
introduce labour reforms, cheap imports volatility in Foreign Currency exchange
rates vis-a-vis Indian Rupee are the Key risk factors.
Stiff cut-throat competition among the Asian countries and global slow down in
demand is also a matter of great concern.
Fixed Assets:
·
Land
·
·
Non
·
Plant and Machienry
·
Furniture and Fixture
·
Vehicles
·
Intangible Assets
AS PER WEBSITE
HISTORY:
Welcome to the home page of The Rai Saheb Rekhchand Mohota
Spinning and Weaving Mills Ltd., a BSE and NSE listed company whose history
goes back to the 19th century. An integrated company converting the basic fibre
to rich fabrics,it is one of the very few composite units to withstand all the
challenges and threats thrown at it for more than 100 years now. Rather, in
this period the organization has grown manifold to become a potential player in
the market and a name to reckon with.
Achievements :
1) Company has got CERTIFICATE OF
MERIT awards for achieving 100% growth in Export performance during the year
2004-2005.
2) Company has been awarded ISO
9001: 2000 certificate by QNeT and its partner CISQ/RINA SpA,
Quality Policy
The Quality policy is to consistently meet or exceed the
customer's expectation for quality product and performance by continual
improvement of the processes and systems.
·
Creating and nourishing competencies
among the people to increase awareness, motivation and involvement.
·
Encouraging questioning of status quo
and establishing continual improvement as an objective for improved result.
·
Planning for changing customer needs,
innovating new products and upgrading technology to meet the desired result.
Profile:
The flagship company of the Mohota group, The R.S.R. Mohota
Spg. and Wvg. Mills, popularly known as RSR, was setup in the year 1898 by Shri
Rekhchandji Mohota in the cotton belt of central India. In more than 100 years
of operation in the textile arena the company has evolved from a meager
capacity of 500 tons of yarn, 100000 meters fabric per annum to a monolithic
size of 10000 tons of yarn and 20 million meters fabric per annum. Today the
product range includes grey and dyed multi-purpose yarns, bleached, dyed,
mercerized, high value ready-to-stitch fabrics etc.
Administered by a highly dynamic and experienced management,
the company has upgraded continuously from its outdated machinery to superior
and contemporary ones. A strong skilled workforce of 3000 people are provided
continuous training so as to hone their skills further and hence add more value
to the company.
The group is a firm believer of the values of innovation,
quality, and ethical practices. RSR has thrived using these concepts as pillars
of growth. Organizations, business and people dealing with RSR continue their
dealing with the Company on a long term basis. The relationship flourishes in
the environment of mutual trust that reciprocates between RSR and its business
allies. The ever-growing sales figures and export demand is a testimony to the
customer-centric approach.
Product
Division:
The company has vertically integrated itself into divisions
namely spinning, weaving and processing. These divisions are designed to create
a value adding chain through out the supply chain from raw material to
processed fabric. It delivers a capability to provide wide variety of products
suitable for divergent needs of the customers.
Some of the key features of the operations are
·
All the inputs are stringently tested
for specifications and followed by standardized operations to have consistency
in the system of work.
·
Appropriate use of operation research
tools in the areas of production planning and information technology tools such
as MIS and networking in the field of communication
·
Lean manufacturing processes ensures
faster and better end product.
·
State-of-the-art manufacturing facility
and quality monitoring system
Thus delivering total superior value to the customer has
helped the organization carve a niche in the textile field.
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 records 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.47.08 |
|
|
1 |
Rs.71.17 |
|
Euro |
1 |
Rs.66.98 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--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 |
|
47 |
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 |
|