MIRA INFORM
REPORT
|
Report
Date : |
04.10.2008 |
IDENTIFICATION DETAILS
|
Name : |
NIKHIL FOOTWEARS PRIVATE LIMITED |
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Registered
Office : |
G-11,
Udyog Nagar, Main Rohtak Road, Delhi – 110 041, India |
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Country
: |
India |
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Financials
(as on) : |
31.03.2007 |
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Date
of Incorporation : |
09.01.1987 |
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CIN
No.: |
U19201DL1987PTC026643 |
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Com.
Reg. No.: |
55-26643 |
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TAN
No.: (Tax
Deduction & Collection Account No.) |
DELN01310B |
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Legal Form
: |
Private Limited Liability Company |
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Line
of Business : |
Manufacturer
of Footwear, Shoe Components, PVC Compound. |
RATING & COMMENTS
|
MIRA’s
Rating : |
A |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum
Credit Limit : |
USD
3100000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject is a well established company having fine track.
Available information indicates high financial responsibility of the company.
Trade relations are fair. Payments are correct and as per commitments. The company can be considered good for any normal business
dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
G-11, Udyog
Nagar, Main Rohtak Road, Delhi – 110 041, India |
|
Tel.
No.: |
91-11-25473842 / 25471684 / 25472660/ 25472557/ 25473827/
25477685 |
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Fax
No.: |
91-11-2547
2907 |
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E-Mail
: |
info@actionshoes.com/ nikhilfootwears@hotmail.com, cpcnewdehi@yahoo.com |
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Website
: |
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Area : |
Commercial |
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Factory : |
98, Shahzabad Bagh Industrial Area, Old Rothak Road, Delhi
–m 110035 |
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Tel.
No.: |
91-11-25105255/ 2547382/ 25472557 |
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Fax
No.: |
91-11-23658037/ 25472907 |
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Location : |
Industrial |
DIRECTORS
|
Name : |
Mr. Nand Kishore Aggarwal |
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Designation
: |
Director |
|
Address |
12/22, East Punjabi Bagh, New Delhi – 110 026,
India |
|
Date
of Birth : |
02.12.1948 |
|
Date
of Appointment : |
18.07.1989 |
|
Other
Directorships |
·
Microtek International Private Limited, India ·
Kabeer Textiles Private Limited, India |
|
|
|
|
Name : |
Mr. Naresh Kumar Aggarwal |
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Designation
: |
Director |
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Address: |
15/17, East Punjabi Bagh, New Delhi – 110 026,
India |
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Date
of Birth : |
12.09.1954 |
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Date
of Appointment : |
01.10.1996 |
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|
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|
Name : |
Mr. Aggarwal Ajay
Kumar |
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Designation
: |
Director |
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Address: |
12/22, East Punjabi Bagh, New Delhi – 110 026,
India |
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Date
of Birth : |
23.04.1973 |
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Date
of Appointment : |
15.10.1998 |
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|
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Name : |
Mrs.
Aggarwal Urmil |
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Designation
: |
Director |
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Name : |
Mr. Vijay Kumar Aggarwal |
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Designation
: |
Director |
KEY EXECUTIVES
|
Name : |
P. S. Soni and Company |
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Designation
: |
Company Secretary |
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Address
: |
F-15, Ansal Utility Commercial Centre, Opposite Jwala Heri
Market, Paschim Vihar, New Delhi-110063 |
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Mobile
No.: |
91-9810262298/ 9910017705 |
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Tel.
No. : |
91-11-43231389 |
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E-Mail
: |
MAJOR SHAREHOLDERS
As on 28.09.2005
|
Names of Shareholders |
|
No. of Shares |
|
Mange Ram
Aggarwal |
|
1670 |
|
Subhash
Chander Aggarwal |
|
2500 |
|
Varun
Aggarwal |
|
1500 |
|
Naresh
Kumar Aggarwal |
|
2500 |
|
Anil
Kumar Aggarwal |
|
2500 |
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Nand
Kishore Aggarwal |
|
3100 |
|
Urmil
Aggarwal |
|
1500 |
|
Shanti
Devi |
|
1500 |
|
Ajay
Kumar Aggarwal |
|
1500 |
|
Amit
Aggarwal |
|
1500 |
|
Charu
Aggarwal |
|
750 |
|
Nisha
Aggarwal |
|
1000 |
|
Tarun
Aggarwal |
|
1500 |
|
Saroj
Jain |
|
750 |
|
Raj Kumar
Gupta |
|
1500 |
|
Vinod
Kumari |
|
1500 |
|
Bimal
Prasad Jain |
|
500 |
|
Vivek
Jain |
|
750 |
|
Navneet
Aggarwal |
|
1500 |
|
Nikhil
Aggarwal |
|
1000 |
|
Vishesh
Gupta |
|
1500 |
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Sanchit
Gupta |
|
1500 |
|
Ruchi
Aggarwal |
|
1000 |
|
Ankit
Aggarwal |
|
1500 |
|
Ginni
Devi |
|
2000 |
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Sushma
Aggarwal |
|
1980 |
|
Neha
Aggarwal |
|
1000 |
|
Asha Devi |
|
2000 |
|
Total |
|
43000 |
Equity Share Breakup (Percentage of Total Equity)
As on 29.09.2007
|
Category |
|
Percentage |
|
Directors
or relatives of directors |
|
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturer
of Footwear, Shoe Components, PVC Compound. |
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Products
: |
Ø
Footwear Ø
Pu
Sole Ø
Sport
Shoes Ø
Other
Footwear (With Upper of Textile Materials) Ø
Upper
Sole
|
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Brand
Names : |
v Action v Health Plus v Campus v Dotcom v Milano v EVA Flotter v School Time v Mausam v Florina v Micro v Hooha v Fun Time v Roaming v Fly Float v Chanchal v Flotter v Easy Line |
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Exports
to : |
v Spain v Portugal v Holland v Germany v Denmark v U.A.E. v Dubai v Mauritius v United States v U.K v Ireland v France. |
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Imports
from : |
·
Germany ·
Netherlands ·
Taiwan ·
Italy. |
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Terms
: |
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Selling : |
Cash and Credit upto 60 days terms. |
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Purchasing : |
Cash and Credit upto 60 days terms. |
PRODUCTION STATUS
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Particulars |
Unit |
|
Installed Capacity |
|
|
Footwear
(Pair) |
Nos |
|
4,000,000 |
|
|
P. V.
Shoes (Pair) |
Nos |
|
1,200,000 |
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|
Sole
(Pair) |
Nos |
|
-- |
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GENERAL INFORMATION
|
Customers
: |
v Asian Paints v Asashi India Glass v Jet Airways v Hindalco Industries v Maruti Udyog Limited v Samsung India Limited v Indian Army v Indian Air Force v Delhi University v Park Royal v Parle Biscuits v Mother Diary v Hyatt Regency v Le-Meridian |
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No. of
Employees : |
300 |
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Bankers
: |
v State Bank of Bikaner and Jaipur,
Lawrence Road, New Delhi-10035 v State Bank of Bikaner and Jaipur,
Lawrence Road, New Delhi-110035, India v State Bank of Saurashtra, Andhra
Association Building, 24-25, Institutional Area, Lodhi Road, Delhi-110003 v State Bank of India, Chennai v Axis Bank Limited v Punjab National Bank, NSIC Bhavan,
Okhala Industrial Estate, New Delhi-110020, India |
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Facilities: |
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Banking Relations : |
Good |
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Auditors
: |
Brijendra
and Company Chartered
Accountants |
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Address
: |
76, Darya
Ganj, New Delhi – 110 002, India |
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Affiliates
: |
v
API
Associates Private Limited, India v
API
Polymers India Limited, India v
Mahan
Plastic Private Limited, India v
Nikhil
Udyog, India v
Micro
Industrial Corporation, India v Microtek International Limited,
India |
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Associates
: |
Nikhil Footwears Private Limited Kundli Tel. No: 91-23657248, 23657258, 55450423, 55450425 Ajay Plastic Industries Micro Industrial Corporation API Polymers India Private Limited Action International Private Limited Action Footwear Private Limited |
CAPITAL STRUCTURE
As on 29.09.2007
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
43000 |
Equity
Shares |
Rs. 100/-each |
Rs.4.300 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
43000 |
Equity
Shares |
Rs. 100/-each |
Rs.4.300 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 |
|
|
|
|
|
1] Share
Capital |
4.300 |
4.300 |
4.300 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
627.833 |
592.966 |
553.350 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
632.133 |
597.266 |
557.650 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
250.539 |
86.191 |
122.417 |
|
|
2]
Unsecured Loans |
15.027 |
52.337 |
38.719 |
|
TOTAL
BORROWING
|
265.566 |
138.528 |
161.136 |
|
|
DEFERRED
TAX LIABILITIES |
2.055 |
4.138 |
7.330 |
|
|
|
|
|
|
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TOTAL
|
899.754 |
739.932 |
726.116 |
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block]
|
90.673 |
92.650 |
105.169 |
|
Capital work-in-progress
|
19.899 |
12.546 |
7.258 |
|
Capital Goods in Transit
|
0.000 |
0.000 |
0.236 |
|
|
|
|
|
|
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INVESTMENT
|
70.458 |
0.473 |
0.370 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
153.713
|
167.296
|
178.319
|
|
|
Sundry Debtors
|
273.249
|
278.177
|
316.991
|
|
|
Cash & Bank Balances
|
27.981
|
21.909
|
103.637
|
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances
|
424.182
|
329.073
|
266.640
|
Total Current Assets
|
879.125
|
796.455
|
865.587
|
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
135.943
|
133.845
|
235.839
|
|
|
Provisions
|
24.358
|
28.347
|
16.665
|
Total Current Liabilities
|
160.301
|
162.192
|
252.504
|
|
Net
Current Assets
|
718.824
|
634.263
|
613.083
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
899.854 |
739.932 |
726.116 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales
Turnover |
886.980 |
960.773 |
926.372 |
|
|
Other
Income |
30.614 |
11.520 |
13.712 |
|
|
Total Income |
917.594 |
972.293 |
940.084 |
|
|
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
57.240 |
64.746 |
41.221 |
|
|
Provision
for Taxation |
22.274 |
25.130 |
16.219 |
|
|
Profit/(Loss)
After Tax |
34.966 |
39.616 |
25.002 |
|
|
|
|
|
|
|
|
Total Earnings |
NA |
NA |
1.827 |
|
|
|
|
|
|
|
|
Total Imports |
NA |
NA |
69.614 |
|
|
|
|
|
|
|
|
Expenditures
: |
|
|
|
|
|
|
Financial
Charges |
21.315 |
8.371 |
7.464 |
|
|
Depreciation
& Amortization |
25.058 |
28.436 |
31.950 |
|
|
Other
Expenditure |
813.981 |
833.933 |
820.034 |
|
Total Expenditure |
860.354 |
870.740 |
859.448 |
|
KEY
RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
PAT / Total Income
|
(%)
|
3.81
|
4.07
|
2.66
|
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
6.45
|
6.66
|
4.38
|
|
|
|
|
|
|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
5.90
|
7.28
|
4.21
|
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.09
|
0.11
|
0.07
|
|
|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
0.67
|
0.50
|
0.74
|
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
5.48
|
4.91
|
3.43
|
LOCAL AGENCY FURTHER
INFORMATION
Trade Terms With:
v M.G. Polymers and Compounding Company
v N. K. Polymers and Additives Manufacturing
v Sanchit Polymers
v Chandras Chemical Enterprise Private Limited
v Organo Vinyl Private Limited
v API Industrial Corporation
Bankers Charges Report
as per Registry
|
This form
is for |
Modification
of charge |
|
Charge
identification number of the modified
|
80011485 |
|
Corporate
identity number of the company |
U19201DL1987PTC026643 |
|
Name of
the company |
NIKHIL
FOOTWEARS PRIVATE LIMITED |
|
Address
of the registered office or of the principal place of business in India of the company |
G-11,
Udyog Nagar, Main Rohtak Road, Delhi – 110 041, India |
|
Type of
charge |
Others |
|
Particular
of charge holder |
State
Bank of Saurashtra, Andhra Association Building, 24-25, Institutional Area,
Lodhi Road, Delhi-110003, India |
|
Nature of
description of the instrument creating or modifying the charge |
Fresh
Deed of Guarantee Dated 20.09.2007 in favour of SBS Consortium for facilities
given to Action Ispat |
|
Date of
instrument Creating the charge |
20.09.2007 |
|
Amount
secured by the charge |
Rs.
285.200 Millions |
|
Brief
particulars of the principal terms an conditions and extent and operation of
the charge |
Rate of
Interest 2.25% below BPLR, minimum 10.25% p.a. (Floating) on Facilities given
to Action Ispat Terms of
Repayment Facilities
given to Action Ispat are repayable on demand. Margin No Direct
finance to the company Extent
and Operation of the charge First
charge of corporate guarantee favour of SBS constrium. |
|
Short
particulars of the property charged |
Corporate
Guarantee for the facilities given to Action Ispat and Power Private Limited |
|
Date of
latest modification prior to the present modification |
19.02.2007 |
|
Particulars
of the present modification |
Working
Capital Limit Sanbctioned by SBS Consortium in favour of Action Ispat and
Power Limited increased from Rs. 135.000 Millions to Rs. 285.200 Millions and
PNB, B/O Okhla has been included in SBS Consortium. |
|
Name of
the company |
NIKHIL
FOOTWEARS PRIVATE LIMITED |
|
Presented
By |
Company
and State Bank of Indore |
|
1) Date
and description of instrument creating the change |
Deed of
Guarantee Dated 28.10.2005 |
|
2) Amount
secured by the charge/amount owing on the securities of charge |
Rs. 320.000
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 |
Corporate
Guarantee of the company |
|
4) Gist
of the terms and conditions and extent and operation of the charge. |
The above
is to secure term loan of Rs. 320.000 Millions together with interest, costs
and expenses etc. by the Bank to Action Ispat and Power Private Limited |
|
5) Name
and Address and description of the person entitled to the charge. |
State
Bank India, M-47, Connaught Circus, New Delhi, India |
|
6)
Date and brief description of
instrument modifying the charge |
N.A |
|
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. |
N.A |
FIXED ASSETS:
·
Land
·
Buildings
·
Plant and Machinery
·
Moulds and Dies
·
Generator
·
Electric installation
·
Furniture and Fixture
·
Office Equipment
·
Weighing machine
·
Vehicles
·
Cycles
·
Computers
·
Air Conditioners
·
Water cooler
·
Pump set
ACTION GROUP PROFILE :
Subject is committed to growth. To ensure that the growth is
maintained along with a competitive edge, Action group has moved vertically as
well.
Subject implemented a backward integration strategy by entering into chemicals
and plastisizers business.
CHEMICAL AND
PLASTISIZERS:
Their plant located at Daman for the manufacturing of PVC
compound, DOP, DBP, DOA, and DIDP etc. under the brand name API providing
employment opportunities in backward areas of India.
Conglomerate Diversification
Action is not only a leading brand in footwear, but also group has made
investments in various streams un-related to the existing line of business.
MICROTEK (COMPUTER PERIPHERALS
& POWER BACK UP)
Year 1986, Action in a joint venture entered into an
altogether different industry. Brand MICROTEK was launched in the Indian
market.
Computer monitors (colored/mono), speakers, keyboards, mouse, motherboard, UPS,
cases, spikes, suppressor etc. are manufactured under this brand name.
Later on the company extends its product line and goes into the making of
INVERTERS and makes it presence in the power back up segment also.
Five manufacturing plants, more than 20 branch offices, 250 distributors and
over 2500 strong dealers besides its own showrooms, MICROTEK is the country’s
largest computer peripheral and inverter manufacturer.
Microtek manufacturing facilities have been awarded ISO 9002 certification. The
entire customer support activity is also ISO 9002 certified.
OKAYA (AUTOMOTIVE AND INDUSTRIAL BATTERIES)
Arrow International” has been promoted by multi crore
‘Microtek’ to give to the Indian consumers OKAYA world class Japanese
Technology batteries.
Batteries for all kind of cars, automobiles, heavy-duty trucks, motorcycles,
telecommunication systems, electric utilities etc are produced under the Brand
name OKAYA.
The Co. enjoys UL CERTIFICATION, the ISO 9001:2000 by UNDERWRITERS LABORATORIES
INC. USA.
The company caters to both replacement market and original equipment
customers.
SUN CITY (HOUSING
AND COMMERCIAL PROJECTS)
Another joint venture is in the REAL ESTATES under the name
SUN CITY PROJECTS which is being promoted by three distinguished groups ACTION,
ESSEL (Zee Networks) and ODEON builders.
Sun City Projects emerged with a mission to provide ‘International Quality
Housing, Leisure and Entertainment’ at affordable prices. Outcome was an
integrated township spread over 150 acres of land.
Sun City is also coming up with ‘North Square Mall’ (North Delhi) and ‘Cross
River Mall’ (The biggest in East Delhi) with a new vision but the same mission
“Affordable International Standard Retail Spaces”.
SRI BALAJI
ACTION MEDICAL INSTITUTE (HEALTH
CARE)
Action group has also stepped into the HEALTH CARE sector
and has recently opened Action Medical Institute in Delhi.
Spread over 6 acres of landscaped sprawling grounds with 3 lacs square feet of
centrally air - conditioned built up area, mission of the group is to set up an
institute for providing - world class integrated health care facilities to all
sections of the society with a humanitarian touch, whilst maintaining high
standard of ethical practice and professional competency with emphasis on
training and education leading to research.
With a center of excellence in Cardiology, Pediatric, Gynecology, Nephrology,
Gastroenterology and Orthopedics, the Institute with over 25 medical
specialties and 400 beds will serve as a referral hospital for Delhi and
adjoining areas.
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.46.88 |
|
UK Pound |
1 |
Rs.82.97 |
|
Euro |
1 |
Rs.64.99 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--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
|
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/normal. |
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 |