MIRA
INFORM REPORT
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Report Date : |
23.12.2008 |
IDENTIFICATION DETAILS
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Name : |
BALAJI AMINES LIMITED |
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Registered Office : |
Balaji Bhavan, 165 – A, Railway Lines, Solapur – 413001, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
27.10.1988 |
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Com. Reg. No.: |
049387 |
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CIN No.: [Company
Identification No.] |
L24132MH1988PLC049387 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEB02668B |
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Legal Form : |
A Public limited liability company. The company’s shares
are listed on the stock exchange |
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Line of Business : |
Manufacturing of Speciality Chemicals, Aliphatic Amines
and Derivatives |
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 2800000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having fine track. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Financial position is good. Payments are correct and as per commitments.
The company can be considered normal for business dealings at usual trade terms and conditions |
LOCATIONS
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Registered Office : |
“Balaji Bhavan”, 165-A, Railway Lines, Solapur – 413 001, |
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Tel. No.: |
91-217-220313 / 2620825 / 2721182 / 2620822 / 23 / 24 / 27/30 |
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Fax No.: |
91-217-220321 / 2620821/2310821 |
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E-Mail : |
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Website : |
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Administrative
Office : |
3rd Floor, KPR House, |
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Tel. No.: |
Tel. 91-40-27847122/27898206/27814490 |
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E-Mail : |
E-mail. amines@hd2.vsnl.net.in |
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Grams : |
BASIC AMINE |
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Factory 1 : |
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Tel. No.: |
Tel. 91-2471-265013/265014/265015 |
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Fax No.: |
E-mail. osd_aminefac@sancharnet.in |
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Factory 2 : |
Plot No. 4 and 5, Beside Apseb Sub Station 2, IDA, Bollaram – 502325, Medak District, Andhra Pradesh |
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Factory 3 : |
Plot No. E-7 and 8 MIDC, Chincholi, Solapur-413255, |
DIRECTORS
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Name : |
Mr. M R Krishnaiah |
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Designation : |
Chairman |
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Name : |
Mr. A Prathap Reddy |
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Designation : |
Managing Director |
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Name : |
Mr. T Naveena Chandra |
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Designation : |
Director |
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Name : |
Mr. S Vishnu Rao |
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Designation : |
Director |
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Name : |
Mr. N Rajeshwar Reddy |
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Designation : |
Executive Director |
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Name : |
Mr. D Ram Reddy |
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Designation : |
Director (Commercial) |
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Name : |
Mr. G Hemanth Reddy |
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Designation : |
Whole-time Director |
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Name : |
Mr. S.V. Pattabhiraman |
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Designation : |
Director |
KEY EXECUTIVES
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AUDIT COMMITTEE: |
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Name : |
Mr. T. Naveena Chandra |
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Designation : |
Chairman |
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Name : |
Mr. M R Krishnajah |
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Designation : |
Member |
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Name : |
Mr. S Vishnu Rao |
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Designation : |
Member |
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Name : |
Mr. S V Pattabhi Raman |
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Designation : |
Director |
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SHARE HOLDERS’ / INVESTORS’: |
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Name : |
Mr. T Vaneena Chandra |
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Designation : |
Chairman |
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Name : |
Mr. S Vishnu Rao |
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Designation : |
Member |
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Name : |
Mr. A Prathap Reddy |
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Designation : |
Member |
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RESEARCH AND DEVELOPMENT COMMITTEE: |
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Name : |
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Designation : |
Chairman |
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Name : |
Mr. N Rajeshwar Reddy |
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Designation : |
Member |
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Name : |
Mr. G Heamanth Reddy |
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Designation : |
Member |
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REMUNERATION COMMITTEE: |
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Name : |
Mr. M R KLrishnaiah |
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Designation : |
Chairman |
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Name : |
Mr. S Vishnu Rao |
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Designation : |
Member |
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Name : |
Mr. T Naveena Chandra |
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Designation : |
Member |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Speciality Chemicals, Aliphatic Amines and Derivatives. |
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Products : |
· Reserpine · Capsaicin · Camptothecin & Derivatives · Aloe Gel Freeze Dried · Aloe Gel Spray Dried · Centella Asiatica Extract · Vitamin E Natural · 10 DAB & Taxanes · Ajmalicine · Ajmaline · Deserpedine · Rauwolfia Alkaloids · Vinca Alkaloids · Vinblastine Sulphate · Vindoline · Catheranthine · Vincristine · Solanesol · Comptothecin & Derivatives · Aloe Gel Freeze & Spray Dried
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Imports : |
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Countries : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Aliphatic Amines and Derivatives of Amines |
TPA |
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44500 |
36435.901 |
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Natural Products |
TPA |
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48 |
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GENERAL INFORMATION
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No. of Employees : |
200 |
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Bankers : |
² State
Bank of ² State
Bank of ²
State Bank of ² Ing Vysya Bank |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
V. Sridhar and Company Chartered Accountants |
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Address : |
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Associates/Subsidiaries : |
² APR Holdings and Investments (Private) Limited ² Bhagyanagar Finance and Leasing Limited ²
Bhagyanagar Pipe Industries Limited |
CAPITAL STRUCTURE
As on 31.03.2008
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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9000000 |
Equity Shares |
Rs.10/- each |
Rs.90.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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6480200 |
Equity Shares |
Rs.10/- each |
Rs.64.802
millions |
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(including 240000 equity shares of Rs.10/-
each fully paid up being allotted on conversion of warrents and 3240100
shares on account of 1:1 bonus issue |
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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 |
64.802 |
64.802 |
30.001 |
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2] Share Application Money |
0.000 |
0.000 |
3.048 |
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3] Reserves & Surplus |
501.185 |
379.669 |
291.736 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
565.987 |
444.471 |
324.785 |
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LOAN FUNDS |
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1] Secured Loans |
834.145 |
664.176 |
535.410 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
834.145 |
664.176 |
535.410 |
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DEFERRED TAX LIABILITIES |
149.074 |
117.789 |
96.215 |
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TOTAL |
1549.206 |
1226.436 |
956.410 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
706.170 |
593.593 |
548.920 |
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Capital work-in-progress |
56.980 |
0.000 |
3.886 |
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INVESTMENT |
13.242 |
10.242 |
7.242 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.094 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
334.132
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321.293
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225.495 |
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Sundry Debtors |
594.327
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402.297
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289.899 |
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Cash & Bank Balances |
55.129
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43.937
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20.711 |
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Other Current Assets |
4.029
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3.491
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3.458 |
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Loans & Advances |
155.089
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109.793
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58.883 |
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Total
Current Assets |
1142.706
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880.811
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598.446 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
335.552
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210.491
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161.933 |
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Provisions |
34.340
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47.719
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40.245 |
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Total
Current Liabilities |
369.892
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258.210
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202.178 |
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Net Current Assets |
772.814
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622.602
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396.268 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.0000 |
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TOTAL |
1549.206 |
1226.436 |
956.410 |
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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 |
2178.195 |
1755.051 |
1286.139 |
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Other Income |
9.251 |
5.489 |
7.271 |
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Total Income |
2187.446 |
1760.540 |
1293.410 |
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Profit/(Loss) Before Tax |
184.054 |
161.380 |
120.793 |
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Provision for Taxation |
51.446 |
58.239 |
30.097 |
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Profit/(Loss) After Tax |
132.608 |
103.141 |
90.696 |
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Expenditures : |
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Manufacturing, Selling and Administrative
Expenses |
466.080 |
391.639 |
298.097 |
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Raw Material Consumed |
1256.936 |
1139.076 |
773.040 |
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Interest and finance charges |
79.179 |
61.798 |
44.185 |
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Sales Tax/ Value Added Tax |
63.275 |
62.299 |
0.000 |
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Increase or decrease in stock |
93.914 |
[89.860] |
0.000 |
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Prior period adjustment |
0.000 |
[3.103] |
0.000 |
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Depreciation & Amortization |
44.008 |
37.311 |
31.983 |
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Other Expenditure |
0.000 |
0.000 |
25.312 |
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Total Expenditure |
2003.392 |
1599.160 |
1172.617 |
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QUARTERLY RESULTS
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PARTICULARS |
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30.06.2008 1st Quarter |
30.09.2008 2nd
Quarter |
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Sales Turnover |
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730.800 |
715.800 |
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Other Income |
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9.300 |
1.500 |
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Total Income |
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740.100 |
717.300 |
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Total Expenditure |
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632.700 |
586.800 |
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Operating Profit |
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107.400 |
130.500 |
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Interest |
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21.400 |
27.600 |
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Gross Profit |
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86.000 |
102.900 |
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Depreciation |
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11.900 |
12.000 |
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Tax |
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8.100 |
24.100 |
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Reported PAT |
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51.500 |
66.800 |
KEY RATIOS
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PARTICULARS |
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31.03.2008 |
31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
6.06
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5.86 |
7.01 |
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Net Profit Margin (PBT/Sales) |
(%) |
8.45
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9.19 |
9.39 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
15.62
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10.95 |
10.53 |
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Return on Investment (ROI) (PBT/Networth) |
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0.33
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0.36 |
0.37 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.13
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2.08 |
2.27 |
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Current Ratio (Current Asset/Current Liability) |
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3.09
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0.31 |
2.96 |
LOCAL AGENCY FURTHER INFORMATION
History:
Subject was promoted by the KPR Group. It is presently managed by Mr. M. R. Krishnaih, Chairman of the Company. On May, 1995 it came out with a public issue of 0.963 million shares (premium :- Rs. 30/-), aggregating Rs. 38.500 millions to part finance expansion plans for ethylamines and forward integration for the manufacture of derivatives of methyl and ethyl amines, totalling to Rs. 100 millions. The company is a leading manufacturing of ethyl an methyl amines which have various applications in chemical industries.
Apart from this, it has now diversified into producing derivatives of methyl and ethyl amines, namely dimethyl amine hydrochloride, choline chloride, dimethyl acetamide, etc. At present, the company suppliers to various blue chip companies like IDI, Hoechst, Rallis, Ion Exchange, Cheminor Drugs, TTK Pharma, etc.
In 1997-98, the company has successfully commenced the commercial operation of its’ main plant (Ethyl Amines) from June, 1997.
Expansion programme has been taken up for value added
products like Choline Chloride, DMAE-HCI and other intermediates at a cost of
Rs. 50 millions. The project had been appraised by State Bank of
PERFORMANCE
RESULTS
The company made considerable amount of progress in terms of turnover's
and plant utilization during the year.
During the year the company has successfully enhanced capacities for
methyl amines, ethyl amines, NMP and other derivatives by revamping the
production facilities. These efforts resulted in a quantum jump in the gross
turnovers of the company taking it from Rs. 1972.900 Millions in the previous
year to Rs. 2405.800 Millions in the current year registering an increase of
21.63%, profit has gone up by 28.61% from Rs. 103.100 Millions to 132.600
Millions. The summary of results is tabulated hereunder.
RESEARCH &
DEVELOPMENT & EXPANSION / DIVERSIFICATION
The company has always invested on a regular basis in research and
development and these continuous investments in plants, processes and products
such as morpholine, NMP and the like has yielded satisfactory results, though
after sustained efforts.
The continuous research into the processes has resulted in substantial
increase in efficiency and productivity of
the following plants by about 30% to 50% during the year.
a. Methyl Amines
b. Ethyl Amines
c. NMP
MANAGEMENT
DISCUSSION & ANALYSIS
Industry structure,
Development and outlook
Subject is the manufacturer of specialty chemicals, aliphatic amines,
derivatives. Balaji Amines Limited has two manufacturing facilities, one at
Tammalwadi, Tuljapur, Maharashtra and the other at IDA Bollaram,
Balaji Amines Limited is catering to the following industries which are
growing at around 30 to 50% annually.
● API'S
● Agro Chemicals
● Refineries
● Water Treatment Chemicals
● Rubber Chemicals
● Photographic Chemicals
● Health and Neutraceuticals
Some of the industry trends impacting growth are as under :
● Increasing trend in contract manufacturing by Indian API, Pharma
Companies for Global majors.
● Ever expanding capacities of the Domestic companies in all the
sectors as the cost of manufacturing is the
lowest in the world.
● Innovations are demanding for new products locally by all the
sectors.
● Environmental concerns demand for new & Biodegradable
products.
FINANCIAL REVIEW
The company posted a gross turnover of Rs.2405.800 Millions as against
Rs. 1972.900 Millions in the previous year. Against such turnover the company
posted profit after tax of Rs. 132.600 Millions as against Rs. 103.100 Millions
in the previous year. The turnover increased by 21.63 % and the profit after
tax by 28.61 %.
INTERNAL CONTROL
SYSTEM
In the earlier years the company implemented an Enterprise Resource
Planning system (ERP) and is continuously improvising upon the ERP system with
re-engineering the business process, MIS reporting and management tools which
enabled the company to work efficiently and effectively. This resulted in
further strengthening the already strong internal control systems running
through all functional and operational areas of the company.
The Directors through the audit committee regularly review and monitor
the effectiveness of the internal control systems and also promptly implement
the suggestions given by the audit committee in improvising upon the existing
system. In the opinion of the Board of Directors, an effective and adequate
internal control system commensurate with the size of the company and nature of
its business is in place.
A highly efficient Distribution Control System (DCS) that monitors and
automatically controls all the functions of the manufacturing process is in
place and consumption co-efficients of raw materials and utilities are
optimized through the use of this system.
INDUSTRIAL
RELATIONSHIP
Over the years, the company had introduced open door system whereby the
employees extend their views and suggestions to the top management. This has
resulted in increased and mutually beneficial employee participation in the
day-to-day affairs of the company. The company as always, has maintained a
harmonious and happy relations with its entire employee fraternity.
FUTURE OUTLOOK
The outlook for the business is generally encouraging and demand for the
products, in various sectors like API's, Agrochemicals, water treatment
chemicals, Refineries etc., are increasing and overall outlook is favourable.
The company is in trade terms with :-
· Pearson Drums & Barrels (Private) Limited
· Sanjay Chemicals (Private) Limited
· Time Packing (Private) Limited
· Lakshmi Hydraulics (Private) Limited
· Balaji Cement Products (Private) Limited
· Grand Polycoats
Fixed
Assets:
³
Land
³
Building
³
Wind
Electric Generator
³
Plant
and Machinery
³
Furniture
and Fixtures
³
Office
Equipments
³
Vehicles
³
³
Computers
AS PER WEBSITE
Profile:
Balaji Amines Limited,
Subject is a manufacturers of Aliphatic Amines in
BAL has been consistently adding capacities and fine tuning process to
provide quality products at lowest cost to the customers. World over, Amine
technology is a closely guarded process with only a few handful companies having
access to such technology. BAL for the first time in
BAL`s state-of-the-art
manufacturing facility is located at Tamalwadi Village, near Solapur
(Maharashtra State, India) The facility is fully equipped with latest
technology like digital computerized controlled systems, which facilitates the
control of operations from the control room in addition, BAL possesses an
excellent R&D facilities and laboratory, which helps in conducting basic
research and also to fine tune the process.
News:
Q1 of
Financial Year 2008-09 Results
Balaji Amines Limited is an ISO 9001 – 2000 accredited company with a
unique positioning in the field of Manufacture of specialty chemicals,
Aliphatic amines and its derivatives, addressing to the needs of API’s,
Agrochemicals, Rubber chemicals, Water treatment chemicals, Oil refineries and
other industries in the Domestic & Global markets.
The Company operates from its facilities in Solapur, Maharashtra and
Key Operating
Highlights:
·
Sales for the Q1 of FY 08-09 is Rs. 778.700
Millions, representing a growth of 46.9% over the previous
years’ first Quarter of Rs. 530.000 Millions
·
Exports increased by over 3 times during Q1of
FY 2008-09 to Rs. 202.100 Millions when compared to the previous year’s first
quarter of Rs. 63.600 Millions.
·
Profit after tax increased by 67% from 30.800
Millions to Rs.51.500 Millions during Q1 of Financial Year 2008-09.
·
The EPS for the Q1 of 08-09 stands @ Rs. 79.500
Millions when compared to Q1 of previous year @ Rs. 4.75 showing a growth of 67%.
- Methyl and
Ethyl amines plants revamped during the previous year which resulted
in increased capacity & sales for this quarter and also results
in better realization for the future.
Establishing Captive power plant of 2.5 MW at Unit-I which will
save in cost of power & fuel by around Rs. 30.000
Millions per annum which will be operational from October, 2008.
NMP plant revamped and increased capacity by 100%.
Management
Comments: Commenting on the results and other
developments for the first quarter of 2008-09, Mr. A. Prathap
Reddy, Managing Director said, “We are delighted about the fact that we
have posted phenomenal growth for the first
quarter of 2008-09. Research and Development is the key
area being focused and we have been working towards launch of
new hi-tech products which are first of its kind in
The markets we address are high growth areas and hence we see a
considerable growth in demand of our products. The enhanced capacities and
launch of new products is expected to add a new dimension to the growth
strategy and we expect this to grow multifold in the coming years.
PRESS RELEASE, July 10, 2007 :
Methyl Amines Plant re-vamped, increases production capacity by 30%
Balaji Amines Limited (BAL) (NSE: BALAMINES, BSE: 530999), has today announced
that it has revamped its Methyl Amines plant by adding the balancing
equipments. This re-vamping has resulted in increase of its production capacity
by 30% which will increase the Top line by about 15% and contribute to the
Bottom line as well.
The Company has also announced that its Morpholine plant, which started full
stream from this financial year, has stabilized and the product is being widely
accepted by its major customers. Morpholine is being manufactured by BAL for
the first time in
About Balaji Amines Limited:
Balaji Amines Limited is an ISO 9001 – 2000 accredited company with a unique
positioning in the field of production of specialty chemicals & Aliphatic
amines and its derivatives, addressing to the needs of pharma, agrochemical and
other industries in the Indian and global markets.
The Company operates from its facilities in Solapur, Maharashtra and
OUTCOME OF THE EGM HELD ON 23.12.2006
BONUS ISSUE :
Share holders of the company have approved the Board's proposal for issue of Bonus Shares at 1:1 ratio. The board has been authorized to fix the record date in the ensuing Board Meeting, subject to 'In Principle' approval of Bombay Stock Exchange for issue of Bonus Shares.
Revenues up 15.7% over the sequential quarter
Commenting on financial results for the quarter, Mr. A. Prathap Reddy, Managing
Director said, “Research for newer products has now become a regular feature
and the Company is continuously engaged in identifying newer products which are
extension of amines & New hi tech products and add value to our customers.
The launch of Morpholine is first of its kind in
We posted net revenues of Rs. 492 million for the quarter, growth of 15.7%
sequentially even after one of our major plants being shutdown for revamping.
The operating margins improved marginally, but there is scope of improvement in
the margins and the management is constantly looking at the same.
With the Methyl amines plant now functioning with increased capacity and
increased traction amongst the methyl amine derivatives and specialty
chemicals, we will meet the current demand as well as improve the captive
consumption of various amines. Our products, both the traditional and newer
continue to delight our customers.”
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.47.39 |
|
|
1 |
Rs.70.65 |
|
Euro |
1 |
Rs.66.33 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
52 |
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 |
|