MIRA
INFORM REPORT
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Report Date : |
26.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
PAGE INDUSTRIES LIMITED |
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Formerly Known As : |
PAGE APPAREL MANUFACATURING PRIVATE LIMITED |
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Registered Office : |
Abbaiah Reddy Industria Area, Jockey Campus, 6/2 and 6/4, Hongasandra,
Begur, Hobli, Bangalore 560 068, Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
15.11.1994 |
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Com. Reg. No.: |
16554 |
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CIN No.: [Company
Identification No.] |
L18101KA1994PLC016554 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRP07123E |
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PAN No.: [Permanent
Account No.] |
AABCP2630D |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are listed on
the Stock Exchanges. |
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Line of Business : |
Manufacturers, Importers, Exporters and Sellers of wide variety of under
garments as well as outwear products, swimwears, winter, wear products for
men and women. |
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 2710000 |
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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 satisfactory track. Directors are
reported as experienced and respectable businessmen. Trade relations are fair.
Business is active. Payments are usually 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 : |
Abbaiah Reddy Industria Area, Jockey Campus, 6/2 and 6/4, Hongasandra,
Begur, Hobli, Bangalore 560 068, Karnataka |
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Tel. No.: |
91-080-25732952/ 25732373/ 25732674 |
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Fax No.: |
91-80-25732215/ 25732226 |
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E-Mail : |
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Factory 1 : |
No. 53, Begur Road, Bomma Nahalli, Bangalore – 560 068, Karnataka,
India |
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Overseas Branch : |
Located at: New York |
DIRECTORS
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Name : |
Mr. Sunder Genomal |
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Designation : |
Managing Director |
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Qualification : |
M. Tech., Industrial Engineer |
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Name : |
Mr. Nari Genomal |
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Designation : |
Chairman |
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Name : |
Mr. Ramesh Genomal |
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Designation : |
Director |
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Name : |
Mr. V. Sivadas |
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Designation : |
Alternate Director |
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Name : |
Mr. P. V. Menon |
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Designation : |
Alternate Director |
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Name : |
Mr. Timothy Raipah Wheeler |
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Designation : |
Director |
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Name : |
Mr. Ravi Uppal |
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Designation : |
Director |
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Name : |
Mr. G. P. Albal |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. R. Vijayakumar |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturers, Importers, Exporters and Sellers of wide variety of
under garments as well as outwear products, swimwears, winter, wear products
for men and women. |
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Products : |
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Brand Names : |
“JOCKEY”. |
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Exports : |
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Products : |
Part of Production |
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Countries : |
USA |
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Imports : |
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Products : |
It imports raw materials for own use
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Terms : |
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Selling : |
L/C terms |
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Purchasing : |
L/C terms |
GENERAL
INFORMATION
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Suppliers : |
Some of its’ major suppliers are:-
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Customers : |
Some of its’ major customers are :-
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No. of Employees : |
About 50 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
P. V. Menon & Associates Chartered Accountants |
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Address : |
Bangalore – 560 095, Karnataka, India |
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Collaborators : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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12000000 |
Equity Shares |
Rs. 10/-
each |
Rs. 120.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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11153874 |
Equity Shares |
Rs. 10/- each |
Rs, 111.538 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
111.500 |
24.400 |
24.400 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
565.700 |
100.900 |
42.400 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
677.200 |
125.300 |
66.800 |
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LOAN FUNDS |
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1] Secured Loans |
223.300 |
131.900 |
131.700 |
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2] Unsecured Loans |
29.900 |
0.000 |
0.000 |
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TOTAL BORROWING |
253.200 |
131.900 |
131.700 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
930.400 |
257.200 |
198.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
187.600 |
114.700 |
93.500 |
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Capital work-in-progress |
60.800 |
8.100 |
4.700 |
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INVESTMENT |
137.000 |
7.000 |
3.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
363.700
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233.900 |
192.500 |
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Sundry Debtors |
55.800
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59.000 |
49.900 |
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Cash & Bank Balances |
301.900
|
0.300 |
0.400 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
115.100
|
33.300 |
21.400 |
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Total
Current Assets |
836.500
|
326.500 |
264.200 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
263.800
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168.500 |
166.900 |
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Provisions |
27.700
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30.600 |
0.000 |
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Total
Current Liabilities |
291.500
|
199.100 |
166.900 |
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Net Current Assets |
545.000
|
127.400 |
97.300 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
930.400 |
257.200 |
198.500 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
1413.900 |
1055.200 |
746.500 |
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Other Income |
151.400 |
25.900 |
32.000 |
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Total Income |
1565.300 |
1081.100 |
778.500 |
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Profit/(Loss) Before Tax |
259.000 |
173.400 |
60.600 |
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Provision for Taxation |
88.700 |
59.500 |
18.200 |
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Profit/(Loss) After Tax |
170.300 |
113.900 |
42.400 |
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Expenditures : |
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Raw Materials |
589.200 |
378.000 |
0.000 |
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Excise Duty |
54.500 |
43.300 |
0.000 |
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Power & Fuel Cost |
9.700 |
7.200 |
0.000 |
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Other Manufacturing Expenses |
219.000 |
157.000 |
464.300 |
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Employee Cost |
194.800 |
117.500 |
91.300 |
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Selling and Administration Expenses |
197.700 |
179.400 |
141.800 |
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Miscellaneous Expenses |
2.300 |
1.100 |
0.300 |
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Interest & Financial Charges |
23.800 |
15.800 |
13.000 |
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Depreciation |
15.300 |
8.400 |
7.200 |
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Total Expenditure |
1306.300 |
907.700 |
717.900 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
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Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
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Sales Turnover |
474.100 |
481.000 |
518.400 |
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Other Income |
10.800 |
13.000 |
11.200 |
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Total Income |
484.900 |
494.000 |
529.600 |
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Total Expenditure |
372.800 |
390.700 |
411.900 |
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Operating Profit |
112.100 |
103.300 |
117.700 |
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Interest |
8.300 |
7.200 |
9.500 |
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Gross Profit |
103.800 |
96.100 |
108.200 |
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Depreciation |
7.400 |
6.600 |
10.500 |
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Tax |
30.000 |
26.500 |
32.400 |
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Reported PAT |
66.400 |
63.000 |
65.300 |
KEY RATIOS
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt Equity Ratio |
0.48 |
1.37 |
2.01 |
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Long Term Debt
Equity Ratio |
0.15 |
0.77 |
2.01 |
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Current Ratio |
1.54 |
1.22 |
1.60 |
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TURNOVER RATIOS |
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Fixed Assets |
7.00 |
7.35 |
6.35 |
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Inventory |
4.73 |
4.95 |
4.61 |
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Debtors |
24.63 |
19.38 |
15.57 |
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Interest Cover
Ratio |
11.88 |
11.97 |
5.66 |
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Operating Profit
Margin (%) |
21.08 |
18.73 |
10.82 |
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Profit Before Interest
and Tax Margin (%) |
20.00 |
17.93 |
9.86 |
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Cash Profit
Margin (%) |
13.13 |
11.59 |
6.64 |
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Adjusted Net
Profit Margin (%) |
12.04 |
10.79 |
5.68 |
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Return on Capital
Employed (%) |
47.63 |
83.04 |
41.24 |
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Return on Net
Worth (%) |
42.44 |
118.58 |
71.44 |
LOCAL AGENCY
FURTHER INFORMATION
Biodata
Subject, a Genomal group company, was established in 1994. The Genomal
group companies have been the licensees for the Jockey and Speedo brands in the
Philippines since 1959 and 1988 respectively. The companies are run by the
second generation Genomal Family, sons of the group founder and guiding spirit,
the late Topandas Genomal
Page Industries Ltd. are specialists in the development and production of high
quality underwear for men, women, and children, and are the licensees of Jockey
International Inc. (USA) for manufacture and distribution of the Jockey brand
in India and Sri Lanka.
The companies factory is equipped with state of the art machinery and equipment
including high tech lab testing capabilities. Combed Cotton Yarns are procured
only from the largest and most modern spinning mills in India where stringent
controls guarantee exacting standards. Integrated elastic weaving and fabric
knitting along with carefully controlled fabrics dyeing and processing ensure
consistently high standards of finished garments. With modern and efficient
production and quality control systems led by a team of highly qualified
technologists, quality standards are at par with Jockey products available
worldwide
From 800 stores in 1996, the companies products are now being sold in over
14,000 stores in over 1100 cities and towns spanning the entire length and
breadth of the country.
Page Industries exports underwear and sportswear worldwide. Its customers
include Jockey licensees in Europe, Middle East, and Asia, Jockey UK, Jockey
USA, as well as other top class underwear brands. The Jockey hallmark of
quality is applied to every product delivered. With the backing and active
involvement of seasoned promoters combined with a highly skilled and dedicated
team, Page is committed to the manufacture of world class products
During 2006-2007, the company made an Initial Public Offer of 2,804,000 Equity
Shares of Rs.10/- each at a premium of Rs.350 per equity share.
The company also entered into a seperate lease agreement with the lessor for
leasing of 25,000 SQ FT by constructing additional floors in existing premises.
The company is geared up to produce 47 million pieces per annum by middle of
2007.
The construction of new factory building at the companies premises situated at
Bommasandra Industrial Area is under progress and is anticipated to commence
activity by the end of May 2007. The facility is expected to produce addtional
47 million pieces of garments per annum.
Garter production is enhanced with the addition of two Needle Looms. In order
to expand the production of garments, another four Needle Looms and 8 socks
machines would be ordered by June, 2007 which would be installed for
production.
FINANCIAL
HIGHLIGHTS:
Directors wish to inform you that during the financial year ended March 31,
2007, the sales of the Company increased from Rs. 1011.86 million to Rs.
1359.39 million registering a growth of 34%. The year under review net profit
before tax has increased to Rs. 259.02 million from Rs.173.37 million of last
year, which is 49% of increase. The net profit stood at Rs.170.27 million as
against Rs. 113.91 million of the previous year representing a growth of
49%.
NAME CHANGE &
CONVERSION FROM PRIVATE LIMITED TO PUBLIC LIMITED:
The name of the company 'Page Apparel Manufacturing Private Limited' was
changed to 'Page Industries Private Limited by passing Special Resolution by
the Shareholders of the Company at their Extraordinary General Meeting held on
16th August, 2006. Further the company converted its status of Private Limited
into Public Limited pursuant to the resolution of the shareholders passed on
5th September, 2006.
INITIAL PUBLIC OFFER (IPO):
Pursuant to the final prospectus dated 1st March, 2007, the Company made an
Initial Public Offer of 2,804,000 Equity Shares (including employees
reservation of 15,000 Equity Shares) of Rs. 10/each at a premium of Rs.350 per
equity share aggregating to Rs. 1,009,440,000 comprising of a fresh issue of
1,412,354 shares aggregating to Rs. 508,447,440 and an offer for sale of
1,391,646 shares aggregating to Rs. 500,992,560. The IPO was over subscribed
and the basis of allotment was finalized by the Directors on 10th March, 2007.
The shares of the Company were listed on Bombay Stock Exchange Limited (BSE)
and National Stock Exchange of India Limited (NSE) on 16th March, 2007. The
Company acknowledges the support of investor fraternity in making its Initial
Public Offer a success.
UTILIZATION OF IPO FUNDS:
The objects of the IPO are Brand Building, Expansion, Modernization, Setting up
of manufacturing facility at Bommasandra, Bangalore, Purchasing Corporate
Office, Implementation of ERP Software and General Corporate Purposes.
EXPORTS:
The company's exports during the year under review was Rs. 10.44 million
compared to Rs. 6.71 million in the previous year.
EXPANSION OF CAPACITY:
They have entered into a separate lease agreement with the existing Lessor for
leasing of 25,000 sq. ft., by constructing additional floors in existing
premises. Out of the total additional space, they have already commenced their
operation at a space measuring 12,500 sq. ft., and the remaining 12,500 sq.
ft., is expected to be handed over to us by end of May 2007. With all further
enhancement of space at the present location, their manufacturing capacity is
geared up to produce 47 million pieces per annum by middle of 2007.
The construction of new factory building at their own premises situated at
Bommasandra Industrial Area is under progress and they are anticipating the
commencement of activities by end of May 2007. This facility is expected to
produce additional 27 million pieces of garments per annum.
Garter production is enhanced with the addition of two Needle Looms. In order
to augment the production of garments, another four Needle Looms and 8 socks
machines would be ordered by June 2007, which would be installed for production
at the additional space to be allotted by the Lessor.
BRAND BUILDING:
Brand Building is a 360 degree marketing initiative aimed at strengthening the
brand. The objective of these initiatives is to catapult the brand to the next
level of dominance amongst the consumers and retail.
They have envisaged aggressive implementation of below the line and above the
line marketing initiatives aimed at establishing the lifestyle positioning of
the brand, to be the best displayed and depicted brand in all the formats of
retail. Successful implementation of these brand building strategies will
ensure unsurmountable lead to the brand with regard to present and future
competition in the category.
They have earmarked an amount of Rs. 233.50 million out of the total proceeds
of recent IPO for Brand Building and the amount will be spent over a period of
three years from April 2007 to March 2010. This will be over and above the
normal marketing spend.
MANAGEMENT
DISCUSSION AND ANALYSIS:
Industry Structure and Developments:
During the year 2006-07, Indian Economy has grown 9.2% (estimated) as against
the 9.0% growth of 2005-06. Textile Industry plays a pivotal role through its
contribution to industrial output, employment generation and export earnings of
the Country. Currently the Industry contributes 14% to Industrial Production,
4% to GDP and 16.63% to country's export earnings.
Present Apparel Market is valued over Rs. 880 billion. Intimate wear market is
estimated to be 10% of Indian Apparel Market, out of which 68% relating to
innerwear market of men and women in the ratio of 4:6. The innerwear market is
basically classified into five segments, based on the price viz., Low, Economy,
Medium, Premium and Super Premium. Considering the factors of growth in income
level, preference for recognizable brands and rapid growth of organized retail,
the organized market is anticipated to increase its share in the overall
apparel market.
Opportunities and Threats:
Opportunities:
* Exploding Innerwear Market: Huge unorganized market is shifting to the
organized market. Consumers are becoming more discerning in purchase, which
enables them to look at the brands. Jockey is well positioned to tap this
opportunity.
* Organized Retail: Retailing is getting organized with Malls and Format
Stores. Organized retail unleashes tremendous hidden potential of consumer
purchase.
* Positive Consumer Disposition: Era of higher consumption and brand indulgence
is disintegrating hitherto resistance to branded segments
Threats:
* New entrants are expected to be lifestyle brands. They have holistic
positioning in the consumers' mind - This threat is nullified substantially by
expanding the product portfolio of Jockey besides rolling out emotion based
lifestyle brand positioning.
Outlook:
As the Company has increased its capacity by way of occupying additional
floors, construction of new industrial facility and purchase of machines for expansion
/ modernization, the Company is expected to meet the market requirement.
Segment wise Performance:
The Company is engaged in the business of manufacturing garments. Therefore
there is no separate reportable segment.
Risks and Concern:
The area of risk and concern are:
1. Availability of skilled manpower is a real concern in the Industry.
2. Increase in input and labour costs are tuff to be controlled.
Internal Control System and Adequacy:
The Company has an adequate internal control system commensurate with its size
and nature of its business. Management has overall responsibility for the
Company's internal control system to safeguard the assets and to ensure
reliability of financial records. The Company has a detailed budgetary control
system and the actual performance is reviewed periodically and decision taken
accordingly.
Internal audit programme covers all areas of activities and periodical reports
are submitted to the Management. Audit Committee reviews all financial
statements and ensures adequacy of internal control systems. The Company has a
well-defined organization structure, authority levels and internal rules and
guidelines for conducting business transactions.
AS PER WEB:
Press Releases
Page Industries
Limited FY 07 Net rises 49%
The Net
Sales/Income from operations during the year shot up 34% to Rs. 1359.40 million
as compared to Rs. 1011.86 million posted during the last fiscal. Basic and
diluted EPS based on the year end equity stood at Rs.15.27.
New Delhi, Delhi,
IND, 2007-05-10 11:20:06 (IndiaPRwire.com)
Page Industries Limited (the "Company"), the exclusive
licensee of Jockey International Inc. (USA) for India, Sri Lanka, Nepal,
Bangladesh and Maldives, has posted a 49% jump in its Net Profit of Rs. 170.27
million for the year ended March 31, 2007, as compared to the Net Profit of Rs.
113.91 million posted during the last fiscal. The Net Sales/Income from
operations during the year shot up 34% to Rs. 1359.40 million as compared to
Rs. 1011.86 million posted during the last fiscal. Basic and diluted EPS based
on the year end equity stood at Rs.15.27.
The reserves stood at Rs. 565.68 million as compared to Rs. 100.86
million during the last fiscal.
Mr. Sunder (Ashok) Genomal, Chairman and Managing Director, Page
Industries Ltd., said, "The premium innerwear market is posting
double-digit growth and we intend to increase their market share to around the
30% mark. Over the next three years, we expect their topline to grow at a CAGR
of 35%. Their existing businesses will grow due to the retail revolution,
growing consumer sophistication, higher disposable income and urbanisation. We
shall also benefit from export opportunities emerging from Jockey International
USA and Europe."
The Company recently tapped the capital markets through an initial
public offering (IPO) to raise funds for brand building and expansion of
garment manufacturing capacity in the existing facility. It plans to set up a
new garment manufacturing facility at Bommasandra, Bangalore. It intends to
expand the elastic manufacturing facility and socks manufacturing facility. It
will also implement next generation ERP software (SAP) and modernise its
production process. It intends to expand the existing range of products through
innovation and accelerate the brand building efforts. It will seek to explore
export initiatives while exploiting the unprecedented retail growth in India.
It will continue to invest in further strengthening manufacturing infrastructure
in order to cope up with the growing demand.
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 :
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.42.84 |
|
UK Pound |
1 |
Rs.84.78 |
|
Euro |
1 |
Rs.67.32 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
|
61 |
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 |
|