MIRA
INFORM REPORT
|
Report Date : |
29.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
LOHA ISPAAT LIMITED |
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Registered Office : |
001, Varun Amin Villa 17, Dattatraya Road, Santacurz (West), Mumbai-400054,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.12.1988 |
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Com. Reg. No.: |
11-50107 |
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CIN No.: [Company
Identification No.] |
U27200MH1988PLC050107 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUML05501G |
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PAN No.: [Permanent
Account No.] |
AAACL1583C |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturers of H. R. Coils
and C. R. Coils |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1300000 |
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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 meeting its normal commitments
timeously. Trade relations are fair. General financial position is
satisfactory. Business is active. The company can be considered good for normal business dealings. |
LOCATIONS
|
Registered Office : |
001, Varun Amin Villa 17, Dattatraya Road, Santacurz (West),
Mumbai-400054, Maharashtra, India |
|
Tel. No.: |
91-22-26607309 / 26607305 |
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Fax No.: |
91-22-26607309 / 26607305 |
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E-Mail : |
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Website : |
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Factory : |
E-19, MIDC, Taloja, Raigad-410206, Maharashtra, India |
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Tel. No.: |
91-22027410838/ 27402647 |
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Fax No.: |
91-22-27412347 |
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E-Mail : |
DIRECTORS
|
Name : |
Mr. Manish Garg |
|
Designation : |
Directors |
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Mobile No. : |
91-9870777805 |
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E mail : |
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Name : |
Mr. Rajesh Poddar |
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Designation : |
Director |
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Name : |
Mrs. Anju Poddar |
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Designation : |
Director |
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Name : |
Mr. Gopal Agarwal |
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Designation : |
Director |
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Name : |
Mr. Sanjay Bansal |
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Designation : |
Director |
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Mobile No. : |
91-9321177813 |
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E Mail : |
KEY EXECUTIVES
|
Name : |
Mr. Ruchi Raj Kumar Ratoji |
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Designation : |
Secretary |
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Address : |
A-1401, Odessy, Bhakti Park, Wadala (East), Mumbai-400035,
Maharashtra, India |
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|
|
|
Name : |
Mr. Adhikrao Bhosale |
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Mobile No. : |
91-9821870031/ 9321177807 |
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E mail : |
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Name : |
Mr. Pratik Singh |
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Mobile No. : |
91-9321177900 |
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E mail : |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.09.2005
|
Names of Shareholders |
No.of preference
shares |
No. of Equity Shares |
|
Rajesh Poddar |
774189 |
126700 |
|
Lata Poddar |
00 |
2060 |
|
Gaurishankar Poddar (HUF) |
00 |
10 |
|
Gaurishankar Poddar |
00 |
4800 |
|
Anju Poddar |
119000 |
38969 |
|
Ayush Poddar |
00 |
1830 |
|
Anushka Poddar |
00 |
4130 |
|
Manish Kumar Garg |
00 |
5000 |
|
Jyoti Garg |
00 |
3000 |
|
Omprakash Garg and Sons |
00 |
2300 |
|
M/s Dhanidevi Steel Merchants Private Limited |
308888 |
107938 |
|
Rajesh Poddar (HUF) |
00 |
40221 |
|
Anushka Exports |
00 |
4272 |
|
Ashok Poddar |
00 |
7074 |
|
Godgist Stab Limited |
797923 |
185156 |
|
Ganapati Vincom Private Limited |
00 |
50000 |
|
Raghu Vicom Private Limited |
00 |
25000 |
|
Radha Chemicals Private Limited |
00 |
10000 |
|
Kronze Commercial Private Limited |
00 |
40000 |
|
Fedder-Tie up Private Limited |
00 |
25000 |
|
Udhav Commercial Private Limited |
00 |
40000 |
|
A B Overseas Private Limited |
00 |
50000 |
|
Realm Technologies |
00 |
20000 |
|
Deepraj Vinimay OVT Limited |
00 |
20000 |
|
Gita Trafin Private Limited |
00 |
40000 |
|
Total |
2000000 |
853460 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2007
|
Category |
|
Percentage |
|
Directors or relatives of directors |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of H. R.
Coils and C. R. Coils |
|
|
|
|
Products : |
H. R. Coils and C. R.
Coils |
PRODUCTION STATUS
|
Particulars |
Unit |
|
|
Installed
Capacity |
|
H. R. Coils and C. R. Coils |
MT |
|
|
120000.00 |
GENERAL
INFORMATION
|
Suppliers : |
Ø Muez Hest Process Technologies Private Limited Ø Ultimate Mercantile Private Limited Ø Venkatesh Mercantile Private Limited Ø Sai Instruments and Electronics Private Limited Ø Simandhar Trading Corp. Limited Ø Gimar Steel Ø Avani Enterprises Ø Muni Trade Private Limited Ø Soham Metal Private Limited Ø Payal Enterprises Private Limited Ø OM Enterprises |
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|
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Customers : |
Ø Aashtosh Trading Company Ø Abhishek Steels Ø Anupam Packing Ø Anup Industries Limited Ø Bhanu Automotive Pressing India Private Limited Ø Citizen Containers Limited Ø Desai Autocom Private Limited Ø Elegant Floriculture and Agrotech India Limited Ø Fluid Metal India Private Limited Ø Gloria Engineering Company Ø Holloware Manufacturing Syndicate Ø J Sons Foundry Private Limited Ø J D Drums Manufacturing Company Ø Jagdish Iron and Steel Private Limited Ø Krishna Sheet Processors Private Limited Ø Metolon Engineers Private Limited Ø Samir Casting Private Limited
Ø SPACO Carburettors India Private Limited Ø Swastik Accessories Private Lim |
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No. of Employees : |
700 |
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Financial Institution: |
State Bank of India Factors and Commercial Services Private Limited,
Sahakar Bazar Building, 2nd Floor, Bandra (West), Mumbai-400050,
Maharashtra, India |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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|
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Auditors : |
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Name : |
Fafadia and Fafadiya Chartered Accountants |
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Address : |
156, Zaveri Bazar, L. K. Market Premises, Co-operative Society, 3rd
Floor, No. 58, Mumbai-400002, Maharashtra, India |
CAPITAL STRUCTURE
As on 19.07.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1800000 |
Equity Shares |
Rs. 100/- each |
Rs. 180.000 Millions |
|
2000000 |
Preference Shares |
Rs. 10/- each |
Rs. 20.000 Millions |
|
|
Total |
|
Rs. 200.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
999016 |
Equity Shares |
Rs. 100/-
each |
Rs. 99.902
Millions |
|
2000000 |
Preference Shares |
Rs. 10/-
each |
Rs. 20.000
Millions |
|
|
Total |
|
Rs. 119.902 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
119.902 |
119.902 |
105.346 |
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2] Share Application Money |
70.000 |
0.000 |
14.556 |
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|
3] Reserves & Surplus |
71.245 |
47.885 |
31.202 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
261.147 |
167.787 |
151.104 |
|
|
LOAN FUNDS |
|
|
|
|
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1] Secured Loans |
437.928 |
274.740 |
185.112 |
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|
2] Unsecured Loans |
127.149 |
84.424 |
34.034 |
|
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TOTAL BORROWING |
565.077 |
359.164 |
219.146 |
|
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DEFERRED TAX LIABILITIES |
42.600 |
19.875 |
14.415 |
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|
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|
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TOTAL |
868.824 |
546.826 |
384.665 |
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|
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
190.669 |
122.969 |
87.622 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
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|
|
|
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INVESTMENT |
0.000 |
0.000 |
0.000 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
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Inventories |
487.217
|
334.826 |
157.154 |
|
|
Sundry Debtors |
406.168
|
237.590 |
253.489 |
|
|
Cash & Bank Balances |
29.105
|
13.083 |
5.449 |
|
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Other Current Assets |
72.710
|
16.512 |
14.539 |
|
|
Loans & Advances |
13.581
|
0.936 |
0.687 |
|
Total
Current Assets |
1008.781
|
602.947 |
431.318 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
316.906
|
171.412 |
126.137 |
|
|
Provisions |
13.720
|
7.678 |
8.138 |
|
Total
Current Liabilities |
330.626
|
179.090 |
134.275 |
|
|
Net Current Assets |
678.155
|
423.857 |
297.043 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
868.824 |
546.826 |
384.665 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
|
|
|
|
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|
Sales Turnover |
2005.632 |
1316.709 |
1066.994 |
|
|
Other Income |
1.070 |
0.345 |
0.076 |
|
|
Total Income |
2006.702 |
1317.054 |
1067.070 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
52.652 |
27.182 |
17.353 |
|
|
Provision for Taxation |
27.420 |
8.675 |
6.862 |
|
|
Profit/(Loss) After Tax |
25.232 |
18.507 |
10.491 |
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
1854.747 |
1235.532 |
0.000 |
|
|
Purchases made for re-sale |
0.000 |
0.000 |
1005.120 |
|
|
Consumption of stores and spares parts |
2.597 |
0.429 |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
9.521 |
4.926 |
2.656 |
|
|
Managerial remunaration |
0.000 |
0.000 |
0.489 |
|
|
Payment to Auditors |
0.135 |
0.084 |
0.075 |
|
|
Interest |
34.703 |
25.448 |
22.959 |
|
|
Insurance Expenses |
0.303 |
0.000 |
0.000 |
|
|
Power & Fuel |
1.616 |
1.128 |
9.573 |
|
|
Depreciation & Amortization |
8.740 |
7.897 |
4.361 |
|
|
Other Expenditure |
41.688 |
14.428 |
4.484 |
|
Total Expenditure |
1954.050 |
1289.872 |
1049.717 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
1.26
|
1.41 |
0.98 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.63
|
2.03 |
1.63 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.39
|
3.74 |
3.34 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.16 |
0.11 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.43
|
3.21 |
2.34 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.05
|
3.37 |
3.21 |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges
Report as per Registry
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified
|
90165166 |
|
Corporate
identity number of the company |
U27200MH1988PLC050107 |
|
Name of the
company |
LOHA ISPAAT LIMITED |
|
Address of the registered
office or of the principal place of
business in India of the company |
001, Varun Amin Villa 17, Dattatraya Road, Santacurz (West),
Mumbai-400054, Maharashtra, India |
|
Type of charge |
Book Debts Movable Property |
|
Particular of charge
holder |
State Bank of India, Commercial Branch, Dadar, Mumabi-400014,
Maharashtra, India |
|
Nature of
description of the instrument creating or modifying the charge |
A)
Supplemental
Agreement of Loan for Increase in the Overall Limit (Form C.1-4) B)
Supplemental
Agreement of Hypothecation of Goods and Assets for Increase in the Overall
Limit (Form C.2-A) C)
Letter
Regarding the Grant of Individual Limits within the Overall Limit (Form C.5) All the above
Agreements constitute a single modification. |
|
Date of
instrument Creating the charge |
23.10.2007 |
|
Amount secured by
the charge |
Rs. 1157.900
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Demand Cash
Credit : 1% Over SBAR |
|
Short particulars
of the property charged |
A First Charge by
way of hypothecation of the Borrowers entire goods, movables and other assets
present and future including documents of title to goods and other assets, such
as book-debts outstanding moneys, receivables, including receivables by way
of cash assistance and / or cash
incentives under the cash incentive scheme or any other scheme, claims,
including claims by way of refund of customs/ excise duties under the duty
drawback credit scheme, or any other scheme (Details as per Annexure) |
|
Date of latest
modification prior to the present modification |
20.11.2006 |
|
Particulars of
the present modification |
Now by the
present modification dated 23.10.2007 The Limit has been increased from Rs.
591.500 Millions To Rs. 1157.900 Millions (As per Annexure) |
|
Name of the company |
LOHA ISPAAT LIMITED |
||||||||||||
|
Presented By |
State Bank of India, Commercial Branch, Dadar, Mumabi-400014,
Maharashtra, India |
||||||||||||
|
1) Date and description of instrument creating the change |
A) Agreement of
loan for overall limit (Form C.1) B) Agreement of
hypothecation of goods and assets (Form C-2) Both the above
Agreement constitute a single charge. |
||||||||||||
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 8.600
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 |
A first charge by
way of hypothecation of the Borrower’s entire goods, movables and other
assets present and future including documents to the goods and other assets,
such as book-debts, outstanding moneys, receivables by way of cash assistance
and / or cash Incentives under the cash Incentives Scheme or any other
Scheme, claims, including claims by way of refund of customs/ excise duties
under the duty drawback credit scheme contracts, or any other Scheme, bills,
invoices, documents engagements, securities, investments right uncalled
capital and all present and future machinery. |
||||||||||||
|
4) Gist of the terms and conditions and extent and operation of the charge. |
R.O.I. As would
be determined by the Bank from time to time. |
||||||||||||
|
5) Name and Address and description of the person entitled to the charge. |
State Bank of India, Commercial Branch, Dadar, Mumabi-400014,
Maharashtra, India |
||||||||||||
|
6) Date and brief description of instrument modifying the charge |
a) Supply
Agreement of loan for increase in the overall limit F.C. 1-A b)Supplementary
Agreement of Hypothecation of goods and assets for increase in the overall
limit F.C.2-A c) Letter
regarding the grant of individual limits within the overall limit F.C.5 All the above
agreements are dated 18.01.2006 executed fro the creation of a single
modification |
||||||||||||
|
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. |
The original
charge was created on 13.04.1996 for Rs. 8.600 Millions 1stly modified on
17.09.1998 for Rs. 11.000 Millions 2ndly modified kon 31.03.2000 for Rs.
75.000 Millions an addl. Collateral security over the company’s immovable
properties. 4thly modified onf 23.10.2002 for Rs. 88.200 Millions. 5thly
modified on dated 10.10.2003 by giving an company’s immovable properties
6thly modified on 10.10.2003 for Rs. 110.200 Millions. 7thly modified on
29.12.2003 by giving an additional properties. 8thly modified on 15.12.2004
for Rs. 222.300 Millions. 9thly modified on 19.03.2005 by giving an
additional security. 10thly modified on 19.05.2005 the limit converted into
CNRB (DL) of US$ 22700000 within the overall limit of Rs. 222.300 Millions
form and out of the deposits held by the Bank limit has been increased from
Rs. 222.300 Millions to Rs. 300.000 Millions. The limits are as follows. :
|
Fixed Assets
Ø
Furniture and Fixture
Ø
Plant and Machinery
Ø
Slitting machine
Ø
Air Conditioner
Ø
Type Writer
Ø
EPABX Systems
Ø
Refrigetors
Ø
Motor Car
Ø
Mobile Phone
Ø
Fax Machine
Ø
Cycle
Ø
Building
Ø
Computer
Ø
Pager
Ø
Land
Ø
Fuel Oil Pump Equipments
Ø
Electrical Fitting and Fixture
Ø
Office Equipments
Ø
Lab equipment
Ø
Printer 4
Ø
Diesel Generator
Ø
Stamping Die
Ø
Energy Saving Devices
AS PER WEBSITE
Profile
Subject is an established steel processor and service center
since 1985 and presently are placed with five units in the Taloja -
M.I.D.C.region near Navi Mumbai, Maharashtra and one unit located in
khopoli-maharastra with 20 acres area.
Subject
right from its inception, regards Quality standard suiting to Customers
requirement, thus achieving satisfied Customers. They at Loha always sincerely
appreciate, assess and adopt latest techniques to improve the service Quality.
They believe that “Customers are the core of the business, hence the core focus
is Customer Satisfaction”. Loha Ispaat Limited is equipped with the state of
art technology, equipments and excellent infrastructure.
Thet would attain and maintain results as defined above, governed per
business needs by regular analysis and review of the quality policy from time
to time.
They are professionally managed
group capable of handling, jobs of the kinds and magnitude, providing you the
best service.
Company Policy
- They always
stick to top time schedule and the work is completed to the entire
satisfaction of the customers.
- The valued
customer is vendors of reputed manufacturing units which are located
through out india.
- And now since
they are one of the iso certified companies they are also keen to maintain
the iso quality policies as well so that they abide by the endorsed
policies and maintain the same quality and reputation all around the
productive year.
The materials are mainly consumed by following industry sectors:
- Automobile
Industry
- Band Saw
Blades
- Precision
Tubes
- Bearing
Industry
- Hacksaw
Blades
- Transformers
- Circlips/Washers
- Springs
- Containers
- Box
Strapping’s
- Press Parts
- Tube Fittings
and Chokes
- Cable Top
Trays
- Switchgear
Sectors
- Fiber Drums
Manufacturers
- Electrical
Panels
- Storage
- Hinges
- Drums and
Barrels
- Packaging
- Slotted
Angles
- Fabrications
- Shaving
Blades
- Industrial
Refrigerators
- Furniture
- Conveyor
Chains
- Rolling
Shutters
- Lamination
- Hair Clips
- Motorcycle/Cycle
Rims
- Umbrella
- Wire Drawing
- Autorikshaw/Scooter
Body
- Washing
Machine
- Sports Cains
- Hardware
Parts
- Electronic
Equipment
- Industrial
Chains
- Broiler/Pressure
Vessels
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.30 |
|
UK Pound |
1 |
Rs.84.03 |
|
Euro |
1 |
Rs.66.42 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|