MIRA
INFORM REPORT
|
Report Date : |
10.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
NEXO INDUSTRIES LIMITED |
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Registered Office : |
585, Overlock Road, Miller Ganj, Ludhiana – 141 003, Punjab |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
09.10.1998 |
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Com. Reg. No.: |
16 – 21859 |
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CIN No.: [Company
Identification No.] |
U28939PB1998PLC021859 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JLDN00600F |
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Legal Form : |
A Closely held Public Limited Liability Company. |
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Line of Business : |
The company is engaged in manufacturing and exports of M. S. and H. T. Black and Hot Dip Galvanised Hexagonal Bolts and Nuts. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 1326385 |
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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 and reputed company having fine track.
Trade relations are fair. General financial position is good. Business is
active. Payments are reported as usually made as per commitments. The company can be considered good for any normal business dealings. |
LOCATIONS
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Registered Office : |
585, Overlock Road, Miller GanjLudhiana – 141 003, Punjab, India |
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Tel. No.: |
91-161-2532331/ 2532332/ 2532333 |
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Fax No.: |
91-161-2848042/2532334/ 2535280 |
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E-Mail : |
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Website : |
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Factory : |
Focal Point, Ludhiana – 141 001, Punjab, India |
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Area : |
3000 Sq. Yards |
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Location : |
Owned |
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Branches : |
Located At: New Delhi Tel. No.: 91-11-6210884/6218749 Mumbai Tel. No.: 91-22-3401393/3426460 Chennai Tel. No.: 91-44-4351101/4364877 Vadodara Tel. No.: 91-265-341134/322055 Hyderabad Tel. No.: 91-40-7810199/7843058 |
DIRECTORS
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Name : |
Mr. Rajinder Singh |
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Designation : |
Wholetime Director |
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Address : |
250 – R, Modec Town, Ludhiana – 141 002, Punjab, India |
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Date of Appointment : |
09.10.1998 |
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Name : |
Mr. Amrik Singh |
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Designation : |
Wholetime Director |
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Address : |
330- R, Raj Rajeshwari Apartments, Ludhiana – 141002, Punjab, India |
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Date of Appointment : |
09.10.1998 |
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Name : |
Mr. Harbhajan Singh |
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Designation : |
Director |
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Address : |
Overlock Road, Ludhiana, Punjab, India |
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Name : |
Mr. Manjeet Singh |
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Designation : |
Director |
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Address : |
Overlock Road, Ludhiana, Punjab, India |
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Name : |
Mr. Kuldeep Singh |
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Designation : |
Director |
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Address : |
269 - 1, Model Town, Ludhiana – 141002, Punjab, India |
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Date of Appointment : |
28.03.2005 |
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Name : |
Mr. Manpreet Singh |
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Designation : |
Director |
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Address : |
269 - 1, Model Town, Ludhiana – 141002, Punjab, India |
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Date of Appointment : |
28.03.2005 |
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Name : |
Mr. Avtar Singh |
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Designation : |
Director |
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Address : |
Overlock Road, Ludhiana, Punjab |
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Name : |
Mrs. Chandrajeet Kaur Singh |
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Designation : |
Director |
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Address : |
330 – R, Model Town, Ludhiana – 141 002, Punjab, India |
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Date of Appointment : |
01.05.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 29.09.2004
|
Names of Shareholders |
No. of Shares |
|
Mr. Rabinder Singh |
96300 |
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Mr. Amrik Singh |
61150 |
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Mr. Avtar Singh |
5000 |
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Mrs. Harminder Kaur |
1000 |
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Mrs. Gurdeep Kaur |
3000 |
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Mr. Rajinder Singh |
1000 |
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Mrs. Chandrajeet Kaur |
9010 |
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Mr. Mandeep Kaur |
10 |
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Mr. Harbhajan Singh |
10 |
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Mr. Jasminder Singh |
10 |
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Mr. Shikaur Singh |
10 |
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Mrs. Parmeet Kaur |
10 |
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Mr. Rajinder Singh HUF |
10 |
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Mr. Darshan Singh |
10 |
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Mrs. Suminder kaur |
10 |
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Mrs. Sumindewr Kaur HUF |
10 |
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Mr. Manjeet Singh |
10 |
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Mr. Kuldeep Singh |
10 |
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Mrs. Randhir kaur |
10 |
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Mr. Gurdeep Singh |
10 |
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Mr. Baldev Singh |
10 |
Equity share breakup (Percentage of total equity)
As on 31.03.2007
|
Sr. No. |
Category |
Percentage |
|
1. |
Directors or relatives of directors |
100.00 |
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Total |
100.00 |
LIST OF ALLOTTEES
As on 01.08.2007
|
Name of Allottee |
No. of Shares |
|
Mr. Amrik Singh |
18000 |
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Mr. Rajinder
Singh |
5000 |
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Total |
23000 |
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in manufacturing and exports of M. S. and H. T. Black and Hot Dip Galvanised Hexagonal Bolts and Nuts. |
GENERAL
INFORMATION
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No. of Employees : |
Total : 355 ( Office : 40, Factory : 300,
Others : 15) |
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Bankers : |
v State Bank of
India Specialised Commercial Branch, Focal Point, Ludhiana – 141010, Punjab,
India v Bank of America v Citi Bank v The National Small Industrial Corporation v Bank of Punjab Limited Choura Bazar, Ludhiana, Punjab, India v State Bank of India, Mumbai, Maharashtra, India v State Bank of India, Hyderabad, Andhra Pradesh, India v State Bank of India, Vadodara, Gujarat, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Sanjay Kapoor and Associates Chartered Accountants |
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Address : |
72-73, Guru Nanak Dev market, Gill Road, Ludhiana – 141 001, Punjab,
India |
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Sister Concerns : |
v Nexo Products India v Nexo Steel Private Limited, Ludhiana, Punjab |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
200,000 |
Equity shares |
Rs. 100/- each |
Rs. 20.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
199,130 |
Equity shares |
Rs. 100/-
each |
Rs. 19.913 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
|
17.613 |
17.613 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
247.664 |
221.709 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
265.277 |
239.322 |
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LOAN FUNDS |
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1] Secured Loans |
|
291.086 |
165.364 |
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2] Unsecured Loans |
|
3.923 |
6.309 |
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TOTAL BORROWING |
|
295.009 |
171.673 |
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DEFERRED TAX LIABILITIES |
|
7.794 |
0.000 |
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TOTAL |
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568.080 |
410.995 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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170.052 |
73.301 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
|
0.035 |
0.037 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
126.948 |
29.433 |
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Sundry Debtors |
|
156.340 |
187.042 |
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Cash & Bank Balances |
|
10.629 |
24.707 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
176.533 |
165.186 |
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Total
Current Assets |
|
470.450 |
406.368 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
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Current Liabilities |
|
72.020 |
54.944 |
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Provisions |
|
0.438 |
13.767 |
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Total
Current Liabilities |
|
72.458 |
68.711 |
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Net Current Assets |
|
397.992 |
337.657 |
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
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TOTAL |
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568.080 |
410.995 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
928.044 |
848.281 |
740.276 |
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Other Income |
3.167 |
4.690 |
42.196 |
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Total Income |
931.211 |
852.971 |
782.472 |
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Profit/(Loss) Before Tax |
68.953 |
76.145 |
68.741 |
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Provision for Taxation |
20.324 |
26.578 |
25.495 |
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Profit/(Loss) After Tax |
48.629 |
49.567 |
43.246 |
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Expenditures : |
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Raw Material Consumed |
604.417 |
475.165 |
500.853 |
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Consumption of stores and spares parts |
17.299 |
15.112 |
0.000 |
|
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Increase/(Decrease) in Finished Goods |
(58.508) |
35.421 |
0.000 |
|
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Salaries, Wages, Bonus, etc. |
11.023 |
9.936 |
9.430 |
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Managerial Remuneration |
1.200 |
1.200 |
1.200 |
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Payment to Auditors |
0.103 |
0.091 |
0.091 |
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Interest |
29.439 |
18.772 |
13.486 |
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Insurance Expenses |
0.769 |
0.860 |
0.650 |
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Power & Fuel |
10.983 |
10.082 |
9.791 |
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Depreciation & Amortization |
20.729 |
8.201 |
0.000 |
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Other Expenditure |
224.804 |
201.986 |
178.230 |
|
Total Expenditure |
862.258 |
776.826 |
713.731 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
5.22
|
5.81 |
5.53 |
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Net Profit Margin (PBT/Sales) |
(%) |
7.43
|
8.98 |
9.28 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
7.40
|
8.93 |
8.78 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.18 |
-- |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.27
|
0.29 |
-- |
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Current Ratio (Current Asset/Current Liability) |
|
6.49
|
5.91 |
-- |
LOCAL AGENCY
FURTHER INFORMATION
Form 8
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This form is for |
Modification of charge |
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Charge Identification (ID) number of the charge to be modified |
90171980 |
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Corporation identity number (CIN) or foreign company registrations number of the company |
U28939PB1998PLC021859 |
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Name of the company |
NEXO INDUSTRIES LIMITED |
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Address |
585, Overlock Road Miller Ganj, Ludhiana – 141 003, Punjab, India |
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Type of Charges |
v Book debts v Movable property (not being pledge) v Floating charge |
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Particular of the charge holder |
Name : State Bank of India Address : MCLAU State Bank of India, Civil Lines City: Ludhiana State : Punjab ISO country code : IN Pin code: 141 001 e-mail ID: sbi.05276@sbi.co.in |
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Nature or description of the instrument creating or modifying the charge |
Supplemental Agreement of loan for increase in the overall limit Supplemental Agreement of hypothecation of goods and assets for increase in the overall limit. Letter regarding the grant of individual limits within the overall limit. Letter of undertaking by the company not to create any further charge over their property and assets, including uncalled capital. |
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Date of the instrument creating charge |
23.04.2008 |
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Whether charge created or modified outside India |
No |
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Amount Secure by the charge |
Rs. 463.200 millions |
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Brief particulars of the principal terms and conditions and extent and operation of the charge |
Rate of Interest As per agreement Terms of repayment Working Capital on demand Term loan : Existing repayment Schedule Margin Stocks: 25% Book debts : 40% Bank Guarantee: 15% LC/FLC: 15% EPC: 15% Extent and operation of the charge 100% |
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Short particulars of the Property charged |
As Detailed in the agreement |
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Whether any of the property or interest therein under reference is not registered in the name of the company |
No |
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Date of latest modification prior to the present modification |
17.03.2008 |
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Particulars of the present modification |
Sanction of the one time FLC (Usance) limit of Rs. 125.000 millions for a period of 6 months with maximum usance of 90 days. Inter changeability of Rs. 15.000 millions from Bank Guarantee limit to ILC/FLC limit. Other facilities and terms and conditions remaining the same. |
Form 8
|
Name of the company |
NEXO INDUSTRIES LIMITED |
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Presented By |
Mr. Amrik Singh, Director |
|
1) Date and description of instrument creating the change |
a) General agreement for the grant of small industrial capital finance dated 17.05.1999 b) Ancillary agreement 1 for Rs. 8.500 millions c) Ancillary agreement 3 for Rs. 6.000 millions d) Ancillary agreement 6 for Rs. 5.500 millions. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 20.000 millions of CC (Hypothecation) – Rs. 4.000 millions CC (Bills) – Rs. 2.700 millions CC (B D) – Rs. 4.500 millions DDP – Rs. 1.300 millions Letter of Credit – Rs. 2.500 millions Bank Guarantee – Rs. 3.000 millions Bills under L/C – Rs. 2.000 millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecations opf stocks and raw materials, stocks in process, finished goods, book debts and all other current assets whether in transit or at factory works, godowns of the company. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interest 3.50% above SBAR with minimum of 15.81% p.a. with margin of 25% against stocks and bills and 40% against CC (Book debts), Extent and operation of the charges is 100%. |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of India, Speciality Commercial Branch, Focal Point, Ludhiana |
|
6) Date and brief description of instrument modifying the charge |
a) Supplementary general agreement for the grant of small industrial advances and hypothecation of movables for Rs. 95.400 millions (Working capital finance) dated 04.09.2004 b) Ancillary agreement 1 for Rs. 54.000 millions. c) Agreement for the grant of small industrial advances (Ancillary agreement no. 4 for Rs. 4.000 millions) d) Ancillary agreement 6 for Rs. 40.000 millions. |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Limit of Rs. 144.000 millions enhanced to Rs. 164.000 millions as dsetailed below by sanction of limit of Rs. 20.000 millions for a period of 3 months Interest @ 0.25% above SBAR minimum 10.50%. Other terms and conditions remains the same. CC (Hypothecation) – Rs. 30.000 millions E.P.C. – Rs. 15.000 millions CC (B.D.) – Rs. 20.000 millions EBP (Non LC) – Rs. 10.000 millions DDP (Cheques) – Rs. 0.010 million Letter of Credit – Rs. 15.000 millions Bank Guarantee – Rs. 25.000 millions Standby line of credit – Rs. 4.000 millions Inland Bill purchase Rs. 45.000 millions Under LC Foreign Bill Purchases – Rs. 25.000 millions Under LC *within CC (Nexo Industries Private Limited) *within CC (B.D.) |
As Per Website Details
Subject is a leading name in the
world of fasteners and structure, has been assisting the Indian economy in the
area of Electricity, Telecommunication and Railways. Growing with growth in
these areas Nexo Group, today forms an
Industry managing Two companies, namely, Nexo Industries
Pvt. Ltd. and Nexo Structures Private
Limited
Nexo Fastners Division:
Established its base in 1964 for manufacturing
fasteners Nexo Industries Private Limited and High Tensile fasteners in 1978
with Hot Dip Galvanized fasteners in 1982. Nexo Industries Private
Limited has attained a place among the leading manufacturers of fasteners in
the world. In the year 1997, after a number of achievements towards the aim
of "Total Quality Management", Nexo became the first ISO 9002
Company in India of manufacturing Hot Dip Galvanized Fasteners. Nexo , having
won the trust of OEM customers in highly competitive and quality-conscious
makers, grows by Doubling its turnover every 3/4 years. The team of highly
motivated and Dynamic Technocrats and and the most sophisticated technology
have always had a close edge over the quality control at each level of
production. While giving the customers - an extra touch Nexo finds itself alone
among others, to provide a widest range of fasteners with surface coating.
The aim of TQM is set to achieve
the level of customer expectations beyond customer satisfaction.
The Contribution to the Nation Building:
v
ISO 9001-2000.
v
Bureau of International Standards
(ISI).
v
Power Grid Corporation of
India Limited (PGCIL) Electricity Distribution Authority of Government of
India.
v
National Thermal Corporation
of India Ltd. (NTPC) Electricity Generation Authority of Government of India.
v
Department of Telecommunication
(DOT) Telecommunication Authority of Government of India.
v
Central Organization of
Railway Electrification (CORE) Railway Controlling Authority of India.
v
Electricity Dep't. of Various
States in India.
v
Director General Supplies and
Disposal (DGS&D) Central Purchasing Authority of Government of India
v
India's forts 800KVA Line was
established between 'Kishanpura Moga" with the fasteners of " Nexo
". The total order was 1500 M.T. from Cobra- Spain. They are supplying the
fasteners to World's second Largest manufacturer of Transmission Lines i.e. KEC
International Limited.
Approvals
v
ISO 9002.
v
Bureau of International
Standards (ISI).
v
Power Grid Corporation of
India Limited (PGCIL) Electricity Distribution Authority of Government of
India.
v
National Thermal Corporation
of India Limited (NTPC) Electricity Generation Authority of Government of
India.
v
Department of
Telecommunication (DOT) Telecommunication Authority of Government of India.
v
Central Organization of Railway
Electrification (CORE) Railway Controlling Authority of India.
v
Electricity Dep't. of Various
States in India.
v
Director General Supplies and
Disposal (DGS and D) Central Purchasing Authority of Government of India
v
India's forts 800KVA Line was
established between 'Kishanpura Moga" with the fasteners of " Nexo ".
The total order was 1500 M.T. from Cobra- Spain. They are supplying the
fasteners to World's second Largest manufacturer of Transmission Lines i.e. KEC
International Limited Cobra- Spain.
Business
The company is engaged in
manufacturing and exports of M. S. and H. T. Black and Hot Dip Galvanised
Hexagonal Bolts and Nuts.
The company has takenover the
entire business of M/s. Nexo Industries w.e.f. 01.04.1999 and also undertook
expansion plant at village Mangarh, near Kohara, Ludhiana.
The company is one of the leading
manufacturers of Hot Dip Galvanized Fasteners/High Tensile Fasteners in India
established since, 1964. It started manufacturing High Tensile Fasteners in
1978 and also started production of Hot Dip Galvanized Fasteners in 1982. Right
from the day of foundation, its emphasis is on Total Quality Management (TQM).
It started working towards the goal and one by one got recognition from ISI,
NTPC, DGS&D, CORE, PQM, PGCIL, EIL and ultimately were crowned by ISO-9002
Certification by TUV-Cert of Germany. NEXO manufacturers in wide range of
Quality Fasteners conforming to Indian and International Standards (IS, ISO,
DIN, ANSI, SAE, AS, ASTM, BS and JIS Standards). It has cold forging facility
ranging from Dia M4 to M27 and Hot Forging Facilities from M30 to M56 Dia. Nexo
has its own Heat Treatment Plant with GEC make SHAKER HEARTH FURNACE
(Electrically heated atmosphere controlled) for hardening and SIMPLICITY MAKE
tempering furnace. NEXO is specialised in Hot Dip Galvanising with Centrifuge /
Spinning process, which results in clear thread by removing extra zinc from
threads. NEXO is the only Company to give a wide range of surface coating. They
do phosphating, Zinc Electro Plating, Cadmium Plating, Tin Plating and other
coatings as per customer's requirement all is done “IN HOUSE”. Infact they are
the only ISO Certified company in India for Hot Dip Galvanized Fasteners. All
its Hot Dip Galvanized Fasteners are 100% free from Hydrogen Embrittlement.
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 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 :
The 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.
The 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. 43.16 |
|
UK Pound |
1 |
Rs. 85.51 |
|
Euro |
1 |
Rs. 67.95 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
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, they have no basis upon which to
recommend credit dealings |
No Rating |
|