MIRA
INFORM REPORT
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Report Date : |
18.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
ELECTRONICA MACHINE TOOLS LIMITED |
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Registered Office : |
Electra House, 691/ A1 Pune Satara Road, Pune – 411 037, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
24.06.1975 |
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Com. Reg. No.: |
25 – 18397 |
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CIN No.: [Company
Identification No.] |
L74999MH1975PTC018397 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEE02102C |
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PAN No.: [Permanent
Account No.] |
AAACE4196L |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business : |
Manufacturer, Exporter and Importer of Electric
Discharge Machine, Metal Cutting Machines, Special Purpose Machines and
Sintered Products. |
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 1886230 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Mr. Snehal Singhal, Senior Executive denied additional detail
requirements. However, he confirmed the vital details for this report. Subject is a well established and reputed company having fine track. Trade
relations are fair. Financial position of the company is good. Payments are
correct and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
INFORMATION PARTED
BY (General Details)
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Name : |
Mr. Snehal Singhal |
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Designation : |
Senior Executive Marketing |
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Date : |
30.08.2008 |
LOCATIONS
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Registered Office / EDM Division : |
Electra House, 691/ A1 Pune Satara Road, Pune – 411 037, Maharashtra,
India |
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Tel. No.: |
91-20-24012300/ 24211639 |
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Fax No : |
91-20-24217792 |
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E-Mail : |
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Website : |
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Area : |
86000 Sq. ft |
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Location : |
Owned |
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Factory : |
[Tough Carb Division] E-1, Malegaon, MIDC, Sinnar, Nashik – 422 103, Maharashtra, India Tel. No.: 91-2551-230542 Fax No.: 91-2551-230203 E-mail: marketing@toughcarb.com [EDM Division –
Unit I] Electra House,
691/ A1 Pune Satara Road, Pune – 411 037, Maharashtra, India Tel. No.: 91-20-24232900 Fax No.: 91-20-24232907 E-mail: emtp@electronicagroup.com [EDM Division – Unit II] 608/ 609, 1, Saswad, Taluka Purandar, Pune – 412 301, Maharashtra, India Tel. No.: 91-2115-22441/222440 Fax No.: 91-2115-222539 [Plastic
Machinery Division] Gate 399, Hissa, 142, Bhare, Taluka Mulsi, District Pune-412111, Maharashtra, India [Hard Materials Division] H. No.501, Gat No. 411, Village Urawade, Taluka Mulsi, District Pune-412108, Maharashtra, India Tel. No.: 91-20-22923801/ 02, 66740765 Fax No.: 91-20-66740756 E-mail: asd@electronicagroup.com / mvd@electronicagroup.com [EDM Division – CADcentric Division] 810/A, Bilwa Kunj, Bhandarkar Institute Road, Shivaji Nagar, Pune – 411 004, Maharashtra, India Tel. No.: 91-20-25677067/ 25677068 Fax No.: 91-20-25671276 E-mail: radhika@electronicagroup.com S. No. 411, Village Urawade, Taluka Mulsi, District Pune 412108 E-1, MIDC, Sinnar District Nasik 422103 |
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Marketing Office
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Enktra Chambers, 44, Mukund Nagar, Pune – 411037,
Maharashtra, India |
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Tel. No.: |
91-20-24272013 |
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Fax No.: |
91-20-24270891 |
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E-mail: |
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Branch Office : |
Located at :- Ø
F-9, 12 and 13, 1st Floor,
Local Shopping Centre, Mayur Vihar, Near ICICI Bank, New Delhi - 110
091, India Tel : 91-11-2275 6324/27 Website: www.electronicagroup.com Ø
Flat No. 515, Plot No. 11,
Kirti Shikhar Building, Dist. Centre, Janakpuri, New Delhi – 110058, India Mobile No : 91-11-33449208 Ø
Ground Floor,111-A/361,
Ashoknagar, Kanpur -
208 012, Uttar Pradesh, India Tel : 91-512-2215167 Website : www.electronicagroup.com Ø
Shop No.1 Jevan Nagar, Opp.
Urban Estate Nursery, Focal Point, Ludhiana - 141 010, Punjab, India Tel : 91-161-2676321 Ø Gurgaon Off, 1239, Sector-15, Part II, Gurgaon, Haryana, India Tel : 91-124-2251876 Ø
106, 7 and 8, 1st floor, Hindustan Kohinoor Ind.
Complex, L. B. S. Marg, Vikhroli (West), Mumbai - 400 083, Maharashtra, India
RM : 91-20-34069004 E-mail : el_mum@vsnl.net Website : www.electronicagroup.com Ø
43 / B, Nutan Bharat Soc., Alkapuri,
Baroda - 390 005, Gujarat, India Tel : 91-265-2333627/235015 Fax : 91-265-2341276 RM : 91-265-3200477 Website : http://www.electronicagroup.com Ø
Flat No. 4,1st Floor, 34,
Mahim Haldar Street, ( Hazara ), Kolkata - 700 026, West Bengal, India Tel : 91-33-24542480 Fax : 91-33-24540910 RM : 91-33-32139710 E-mail : elcal@vsnl.net Ø
No. 343, 2nd Floor, 11th
Cross, Sampige Piaza, Sampige Road, Malleswaram, Bangalore - 560 003,
Karnataka, India Tel : 91-80-23461244/1246 RM : 91-80-36715174 Ø
110-A 1st Floor, A.R. EM.VE
Bldgs, Lokmanya (West), R. S. Puram, Coimbatore - 641 002 Tel : 91-422-2552469/2540229 Ø
Electronica Europe Sari,
23, Avenue Choiseul, 1290, Versoix, Switzerland |
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Overseas Office : |
China Electronica Machine Tools (Suzhou) Limited Plant No. 25, 369, Lushan Road, Suzhou New District, Jiangsu Province, China – 215129 Switzerland Electronica Europe SA 23 Avenue Choiseul, 1290 Versoix Switzerland |
DIRECTORS
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Name : |
Mr. R. K. Ratnaparkhi |
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Designation : |
Managing Director |
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Name : |
Mr. S. R. Pophale |
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Designation : |
Executive Director |
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Name : |
Mr. P. K. Ratnaparkhi |
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Designation : |
Director |
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Name : |
Dr. P.S. Palande |
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Designation : |
Director |
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Name : |
Mr. D.C. Agashe |
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Designation : |
Director |
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Name : |
Mr. D. N. Mungale |
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Designation : |
Director |
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Name : |
Mr. R.R. Vora |
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Designation : |
Director |
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Name : |
Mr. S. S. Natekar |
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Designation : |
Director |
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Name : |
Mr. Ajay bhave |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. K. D. Kulkarni |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter and Importer of Electric
Discharge Machine, Metal Cutting Machines, Special Purpose Machines and
Sintered Products. |
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Products : |
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Exports : |
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Products : |
v Machines |
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Countries : |
v Russia v Poland v Malaysia v Singapore v UK v Italy v Japan v Saudi Arabia |
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Imports : |
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Products : |
v Raw Materials v Components |
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Countries : |
v Germany v China v USA |
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Terms : |
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Selling : |
L/C |
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Purchasing : |
L/C |
GENERAL
INFORMATION
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Customers : |
v End Users |
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No. of Employees : |
300 |
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Bankers : |
v State Bank of India v The United Western Bank Limited v The Cosmos Co-operative Bank Limited v The Shree Suvarna Sahakari Bank Limited v Rajarshi Shahu Sahakari Bank Limited v
The Hongkong and Shanghai Banking Corporation Limited v
IDBI Bank Limited v
ICICI Bank v
HDFC Bank v
Saraswat Co-operative Bank v
Kotak Mahindra Bank |
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Facilities : |
Note: A I) Working Capital facilities outstanding balance on 31.03.2007 of Rs. 260.672 millions (Previous Year Rs. 86.682 millions) is against hypothecation of inventories and book debts and personal guarantees of Mr. R K Ratnaparkhi, Managing Director, Mr. S R Pophale, Director and Mr. P K Ratnaparkhi, Director and pari passu charge on fixed assets of the company. B I) The Loan from ICICI Bank of Rs. 0.671 million (previous year Rs. 0.142) is secured by hypothecation of specific vehicles. II) The Loan from Kotak Mahindra of Rs. 1.006 millions (previous year Rs. 4.366 millions) is secured by hypothecation of specific vehicles. III) The loan from HDFC Bank of Rs. 1.828 millions (previous year Rs. 2.967 millions) is secured by hypothecation of specific vehicle. IV) The loan from Saraswat Co. op. Bank of Rs. 0.323 million (previous year Rs. Nil) is secured by hypothecation of specific vehicle.
Note: 1) Loan from shareholders
includes, loan from firm in which directors are partners. 2) The loan from HDFC
bank is secured by personal guarantee of Mr. R K Ratnaparkhi / Mr. S R Pophale
/ Mr. P K Ratanparkhi, Directors of the company. |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
S. N. Gogate and Company Chartered Accountants |
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Address : |
‘Sanket’, 2nd Floor, Vijay Nagar Colony, 2123, Sadashiv Peth, Pune – 411 030, Maharashtra, India |
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Associates/Subsidiaries : |
Ø Electronica, Pune, Maharashtra Ø Electronica Leasing and Finance Limited Ø Electronica Plastic Machines Private Limited Ø Shirar Investments and Finance Private Limited Ø Mugdha Investments and Finance Private Limited Ø Electronica Exports (Private) Limited Ø Shrish Holding and Finance Private Limited |
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Wholly Owned Overseas Subsidiary : |
Ø Electronica Machine Tools (Suzhou) Limited, China Ø Electronica Europe SA, Switzerland |
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Group Companies : |
Ø Electronica Mechatronic Systems (India) Private Limited 37, Electronica Co. op. Estate, Pune Satara Road, Pune – 411 009, Maharashtra, India Tel. No.: 91-20-24224440 Fax No.: 91-20-24221881 E-mail: info@electronicaems.com Ø Electronica Mechatronic Systems (India) Private Limited (Finsmart Solutions – Accounting and Finance BPO) 810/A, Bilwa Kunj, Bhandarkar Institute Road, Shivaji Nagar, Pune – 411 004, Maharashtra, India Tel. No.: 91-20-25677067/ 25677068 Fax No.: 91-20-25671276 E-mail: shalaka@finsmart.co.in Ø Electronica Finance Limited Kallaschandra, 128/1 A, Paud Road, Kothrud, Pune – 411 038, Maharashtra, India Tel. No.: 91-20-25459716/ 25459719 Fax No.: 91-20-25459719 E-mail: finance@elfl.co.in Ø EMS Technologies Private Limited E – 265, S K Chambers, Navi Peth, LBS Marg, Pune – 411 030, Maharashtra, India Tel. No.: 91-20-24332898 Fax No.: 91-20-22922333 E-mail: emstsale@vsnl.com Ø Electronica Hitech Engineering Private Limited Enktra Chambers, 44, Mukund Nagar, Pune – 411037, Maharashtra, India Tel. No.: 91-20-24272013 Fax No.: 91-20-24270891 E-mail: Elektra@vsnl.com |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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29,70,000 |
Equity Shares |
Rs. 10/- each |
Rs. 29.700 millions |
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30,000 |
4 % Redeemable Preference Share |
Rs. 10/- each |
Rs. 0.300 million |
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Total |
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Rs. 30.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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19,89,005 |
Equity Shares |
Rs. 10/- each |
Rs. 19.890 millions |
Notes:
- Of the above shares 15505 Equity shares (previous year 2500) of Rs.
10/- each are issued for a consideration other than cash, pursuant to
contracts/ amalgamation.
- Of the above shares 1578000 Equity shares of Rs. 10/- each are
issued as fully paid bonus shares by way of capitalisation of reserves.
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 |
19.890 |
19.890 |
19.760 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
357.356 |
284.108 |
211.889 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
377.246 |
303.998 |
231.649 |
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LOAN FUNDS |
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1] Secured Loans |
265.372 |
94.684 |
70.203 |
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2] Unsecured Loans |
235.389 |
156.735 |
78.875 |
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TOTAL BORROWING |
500.761 |
251.419 |
149.078 |
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TOTAL |
878.007 |
555.417 |
380.727 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
341.195 |
272.652 |
190.964 |
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Capital work-in-progress |
7.369 |
4.414 |
0.582 |
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INVESTMENT |
94.790 |
33.497 |
23.639 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
276.507 |
196.979 |
162.719 |
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Sundry Debtors |
257.222 |
213.173 |
142.147 |
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Cash & Bank Balances |
65.361 |
23.428 |
16.255 |
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Other Current Assets |
1.301 |
1.657 |
2.023 |
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Loans & Advances |
168.484 |
129.697 |
69.355 |
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Total Current Assets |
768.875 |
564.934 |
392.499 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
293.404 |
232.276 |
189.069 |
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Provisions |
40.818 |
87.804 |
37.888 |
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Total Current
Liabilities |
334.222 |
320.080 |
226.957 |
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Net Current Assets |
434.653 |
244.854 |
165.542 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
878.007 |
555.417 |
380.727 |
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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 |
1324.819 |
1002.917 |
846.807 |
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Other Income |
13.830 |
4.492 |
0.000 |
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Total Income |
1338.649 |
1007.409 |
846.807 |
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Profit/(Loss) Before Tax |
125.532 |
117.542 |
98.036 |
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Provision for Taxation |
53.543 |
50.639 |
34.401 |
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Profit/(Loss) After Tax |
71.989 |
66.903 |
63.635 |
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Earnings in Foreign Currency : |
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Export Earnings |
0.000 |
0.000 |
111.743 |
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F. O. B. Value of Exports |
157.962 |
78.474 |
0.000 |
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Total Earnings |
157.962 |
78.474 |
111.743 |
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Imports : |
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Import Value |
0.000 |
0.000 |
133.293 |
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Raw Materials |
208.837 |
164.817 |
0.000 |
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Capital Goods |
0.410 |
13.033 |
0.000 |
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Total Imports |
209.247 |
177.850 |
133.293 |
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Expenditure : |
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Cost of Materials Consumed |
729.704 |
529.600 |
0.000 |
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Employees Cost |
196.357 |
140.648 |
0.000 |
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Establishment Expenses |
90.543 |
81.944 |
0.000 |
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Selling, General and Administration |
141.613 |
99.200 |
0.000 |
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Interest |
20.470 |
9.389 |
0.000 |
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Depreciation |
34.430 |
29.086 |
0.000 |
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Total Expenditure |
1213.117 |
889.867 |
748.771 |
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KEY RATIOS
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
1.10 |
0.75 |
0.74 |
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Long Term Debt-Equity Ratio |
0.52 |
0.47 |
0.49 |
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Current Ratio |
1.26 |
1.38 |
1.49 |
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Fixed Assets |
2.69 |
2.62 |
3.37 |
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Inventory |
5.60 |
5.58 |
6.61 |
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Debtors |
5.63 |
5.65 |
7.64 |
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Interest Cover Ratio |
5.78 |
10.33 |
12.96 |
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Operating Profit Margin(%) |
14.06 |
15.87 |
13.18 |
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Profit Before Interest And Tax Margin(%) |
11.47 |
12.97 |
10.93 |
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Cash Profit Margin(%) |
8.03 |
9.57 |
8.80 |
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Adjusted Net Profit Margin(%) |
5.43 |
6.67 |
6.55 |
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Return On Capital Employed(%) |
21.19 |
27.80 |
30.70 |
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Return On Net Worth(%) |
21.14 |
24.98 |
31.53 |
LOCAL AGENCY
FURTHER INFORMATION
Trade References
Tata Motors
Minda Limited – Pune
Hyrax India Private Limited – Mumbai
Review of Operations
During the year, turnover increased by about 33%, compared to previous year. The exports also registered substantial, in recognition, company was awarded Export Excellence Award at National Level by Engineering Export Promotion Council. Newly set up 100% EOU at Urwade near Pune become operational in last quarter of previous year.
Current Year
Management expects growth trend in the Indian Economy to continue. Efforts are
also on to increase exports in European market through marketing subsidiary of
the company and opening up the markets in Latin America. EOU at Urwade will
also contribute to increased exports, being its' first year of full operations.
The cumulative effect of above will enable company to maintain growth in
volumes and profitability.
Directors
Mr. S R Pophale retired as Executive Director of company on 01.04.07 after a
distinguished service of over 30 years to the company. Company will continue to
receive benefit of his guidance and expertise as Director of company.
Mr. R R Vora and Mr. D C Agashe directors of the company resigned during the
year. Board of Directors wish to place on record their deep appreciation of the
valuable services rendered by these directors to the company during their
tenure.
The Board of Directors have appointed Shri. Ajay Bhave as additional director.
The board is of the opinion that company should continue to avail services of
Shri Bhave as director and accordingly recommend his appointment as director in
the ensuring Annual General Meeting.
In accordance with Articles of Association, Dr P S Palande and Mr. S S Natekar
retire by rotation and are eligible for reappointment.
Contingent Liabilities
|
Particulars |
31.03.2007 |
31.03.2006 |
|
Bank Guarantees |
29.110 |
31.061 |
|
Claims not acknowledged as debts by the
company |
0.000 |
0.750 |
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Service Tax |
0.000 |
3.348 |
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Income Tax |
2.600 |
0.000 |
Trade Terms
Ø Ajanta Enterprises
Ø Aflin Exports Private Limited
Ø Dattatraya Enterprises
Ø Innovation Filter System Private Limited
Ø Kiyosh Electronics
Ø Marshal Threading Company
Ø Prashant Engineers
Ø Sonali Enterprises
Ø Shanti Iron and Steel
Ø Solar Biotronics Laboratories
Ø Shree Gurukrupa Fabricators
Ø Turnwell Enterprises
Ø TVS Engineering Works
Ø Yasho Electric Works
Ø Ghinge Engineering Private Limited
Ø Mona Rasayan Industries Private Limited
Ø Super Abrasive Toolings
Ø Sunny Industries Sales Private Limited
Fixed Assets
v
Land
v
Building
v
Plant and Machinery
v
R and D Plant and Machinery
v
Furniture
v
Fixture
v
Office Equipment
v Vehicles
As Per Website Details
Over three decades back, they identified the need of modern technology
for tool making. And in the landmark year, 1973 they were successful in
developing the first indigenous Electric Discharge Machine (EDM). That was the
beginning of the ever-evolving journey of Electronica.
Customer understanding and the reciprocation to the needs by providing the
right machining technology and manufacturing solutions, that have helped them
to become a multiproduct,
multi location and multimillion turnover Group.
Today they offer manufacturing solutions for engineering, plastics
and electronics industries
through a wide range of manufactured, as well as sourced Machine tools and
allied equipments along with services in engineering and finance areas.
Take a look at the multifaceted Group with global presence, technology
leadership and a high degree of client delight.
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. 46.34 |
|
UK Pound |
1 |
Rs. 82.96 |
|
Euro |
1 |
Rs. 65.82 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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 |
|