MIRA INFORM REPORT
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Report Date : |
6th June, 2006 |
IDENTIFICATION DETAILS
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Name : |
PRICOL
LIMITED |
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Formerly Known As : |
PREMIER INSTRUMENTS & CONTROLS LIMITED |
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Registered Office : |
Post Box 6331, 1087-A, B
& C Avanashi Road, Coimbatore – 641 037, Tamil Nadu, INDIA |
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Country: |
India |
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Financials (as on): |
31.03.2005 |
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Date of Incorporation : |
06.03.1972 |
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Com. Reg. No.: |
000641 |
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CIN No.: [Company Identification No.] |
L33129TZ1972PLC000641 |
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TAN No.: (Tax Deduction &
Collection Account No.) |
CMPB03136A |
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PAN No.: (Permanent Account No.) |
AABCP2380C |
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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 : |
Manufacturing of
instruments and accessories, oil pumps, electronic counters and controls,
industrial pressure gauges and small precision machine tools such as
electronic speedometers, tachometers, mechanical speedometers, quartz hour
counters, fuel gauges and sensors, temperature gauges and sensors, pressure
gauges and sensors, pressure switches, voltmeters, ammeters, Speedo cables,
auto fuel cocks for two wheelers, handlebar switches, wind shield washer pump
kits and panel instruments, centreless grinders, coil winding machines, foil
stamping machines, screen printing machine, special purpose machine, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 5000000 |
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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. Financial position is
strong. 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 teems and conditions. |
LOCATIONS
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Registered/Corporate
Office : |
Post Box 6331, 1087-A, B
& C Avanashi Road, Coimbatore – 641 037, Tamil Nadu, INDIA |
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Tel. No.: |
91-422-5336000
(5 lines) |
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Fax No.: |
91-422-5336299 |
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Mobile No.: |
91-9894499895/9894499896 |
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E-Mail : |
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Website : |
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Regional Offices: |
North Zone: Jatinder
Punj,
Regional
Manager,
Pricol Ltd, Plot no.34&35, Sector 4, Imt Manesar, Gurgaon - 122 050. Phone: 91 - 124 - 4312200, 2290866 - 68 Fax: 91 - 124 - 2290869 E
mail: plant2@pricol.co.in Mobile:
91 - 98996 - 91752 East Zone: Flat 3C, Block B, Mahananda
Apartments
Chandra
Jothi Nagar, Kunjvihar, Sonari jamshetpur - 831 011,
INDIA Mobile:
98300 - 76375 E-Mail: ranjanpricol2000@yahoo.com West Zone: 701
& 702 Madhava Building, 7th Floor, Near Drive-in Theatre Complex, Bandra Kurla Complex,
Bandra (East),
Mumbai - 400
051, Phone:
91 - 22 - 26590357, 26590289 Fax: 91 - 22 - 26592677 Mobile: 98201 - 06255 E-Mail: pricolmbi@satyam.net.in South Zone: 1st
Floor - A, Sun Plaza,
No. 19, G.N.
Chetty Road,
Chennai -
600 006,
Tamil Nadu, Phone:
91- 44 - 28151560 Fax: 91- 44 - 28151560 Mobile:
98400 - 71375 E-Mail: pricochn@vsnl.com |
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Factory 1 : |
PLANT
I 132,
Ooty Main Road, Perianaickenpalayam, Coimbatore
- 641 020. PLANT
II Plot
N0.34&35, Sector 4 IMT
Manesar Gurgaon
- 122 050 PLANT
III 4/558,
Chinnamathampalayam, Bilichi
Village, Press
Colony Post, Coimbatore
- 641 019. PLANT
IV 2/439,
Main Road, Karamadai
Post, Coimbatore
- 641 104. PLANT
V Survey
No.1065 & 1066, Pirangut, Taluk
Mulshi, Pune - 412 108. |
DIRECTORS
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Name : |
D. Vijay Mohan |
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Designation : |
Vice Chairman and Managing
Director |
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Date of Birth/Age : |
57 years |
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Qualification : |
B.E. (Mech.), Master of
Management Science (USA) |
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Experience : |
27 years |
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Date of Appointment : |
03rd April, 1973 |
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Name : |
Mr.
L. Lakshman |
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Designation : |
Director |
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Name : |
Mr.
E.K. Parthasarathy |
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Designation : |
Director |
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Name : |
Mr.
Suresh Jagannathan |
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Designation : |
Director |
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Name : |
Mr.
C.R. Swaminathan |
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Designation : |
Director |
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Name : |
Mr.
K.N.V. Ramani |
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Designation : |
Director |
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Name : |
Mr.
D. Sarath Chandran |
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Designation : |
Director |
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Name : |
Mr.
Takeshige Tabuchi |
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Designation : |
Director |
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Name : |
Mr.
Haruo Ishida, |
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Designation : |
Alternate
Director to Mr. Takeshige Tabuchi |
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Name : |
Mr.
C.N. Srivatsan |
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Designation : |
Director |
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Name : |
Mr.
T.K. Balaji |
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Designation : |
Director |
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Name : |
Mr.
V. Ramakrishnan |
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Designation : |
Director |
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Name : |
Mr.
R. Vidhya Shankar |
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Designation : |
Director |
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Name : |
Mrs.
Vanitha Mohan, |
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Designation : |
Executive
Director |
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Name : |
Mr.
V. Srinivasan |
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Designation : |
Company
sectary |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of Holding |
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Promoters
& Associates |
32781750 |
36.43 |
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Foreign
Collaborator - DENSO Corporation, Japan |
11250000 |
12.50 |
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Overseas
Corporate Bodies |
1936750 |
2.15 |
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Non-resident
Indians |
2000256 |
2.22 |
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Foreign
Institution Investor |
264917 |
0.29 |
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Banks |
232875 |
0.26 |
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Indian
Financial Institutions / Insurance Companies |
225750 |
0.25 |
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Bodies
Corporate |
5645222 |
6.27 |
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Mutual
Funds |
5446621 |
6.05 |
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Public |
30215859 |
33.58 |
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Total |
90,000,000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of
instruments and accessories, oil pumps, electronic counters and controls,
industrial pressure gauges and small precision machine tools such as
electronic speedometers, tachometers, mechanical speedometers, quartz hour
counters, fuel gauges and sensors, temperature gauges and sensors, pressure
gauges and sensors, pressure switches, voltmeters, ammeters, speedocables,
auto fuel cocks for two wheelers, handlebar switches, wind shield washer pump
kits and panel instruments, centreless grinders, coil winding machines, foil
stamping machines, screen printing machine, special purpose machine, etc. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Installed Capacity |
Actual Production |
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Dashboard
Instruments |
Nos. |
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15100000 |
11328988 |
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Speedometer Cables (in
Mtrs) |
Nos. |
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3000000 |
2420353 |
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Sensors (all types) |
Nos. |
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6408000 |
5341238 |
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Oil Pumps |
Nos. |
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5930000 |
4006665 |
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Chian Tensioners |
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1300000 |
964157 |
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Idle Speed Control Valve
Assy |
Nos. |
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682000 |
475632 |
GENERAL INFORMATION
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No. of Employees : |
4600 |
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Bankers : |
v
Andhra Bank v
State Bank of India v
ICICI Bank Limited v
IDBI Bank Limited v
Induslnd Bank Limited v
Bank of Nova Scotia v
HDFC Bank Limited v
ANZ Grindlays Bank
Limited v
ABN Amro Bank |
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Facilities : |
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Banking Relations : |
Good
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Auditors : |
Suri & Company Chartered
Accountants |
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Subsidiaries : |
Integral
Investments Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
100,000,000 |
Equity
Shares |
Rs. 1/- Each |
Rs. 100.000 Millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
90,000,000 |
Equity
Shares |
Rs. 1/- Each |
Rs. 90.000 Millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
90.000 |
60.000 |
60.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1163.800 |
919.000 |
899.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
1253.800 |
979.000 |
959.200 |
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LOAN FUNDS |
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1] Secured Loans |
1129.500 |
717.900 |
923.700 |
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2] Unsecured Loans |
429.200 |
434.400 |
270.600 |
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TOTAL
BORROWING
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1558.700 |
1152.300 |
1194.300 |
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DEFERRED TAX LIABILITIES |
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TOTAL
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2812.500 |
2131.300 |
2153.500 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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1417.800 |
1258.000 |
1197.900 |
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Capital work-in-progress
|
385.900 |
39.400 |
8.500 |
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INVESTMENT
|
49.800 |
76.500 |
80.100 |
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DEFERREX TAX ASSETS
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
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764.100
|
570.400 |
384.100 |
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Sundry Debtors
|
697.200
|
696.300 |
517.300 |
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Cash & Bank Balances
|
60.900
|
60.000 |
100.100 |
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Other Current Assets
|
0.000
|
0.000 |
0.000 |
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Loans & Advances
|
602.800
|
607.400 |
668.900 |
Total Current Assets
|
2125.000
|
1934.100 |
1670.400 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
839.200
|
701.700 |
529.900 |
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Provisions
|
326.800
|
475.000 |
273.500 |
Total Current Liabilities
|
1166.000
|
1176.700 |
803.400 |
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Net Current
Assets
|
959.000
|
757.400 |
867.000 |
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
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TOTAL
|
2812.500 |
2131.300 |
2153.500 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
5369.000 |
4435.800 |
3617.200 |
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Profit/(Loss) Before Tax
|
622.500 |
512.000 |
257.000 |
Provision for Taxation
|
210.000 |
176.000 |
105.000 |
Profit/(Loss) After Tax
|
412.500 |
336.000 |
152.000 |
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Export Value
|
602.229 |
413.459 |
NA |
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Total Expenditure
|
3724.000 |
3006.000 |
3999.000 |
QUARTERLY
|
PARTICULARS |
|
|
31.03.2006 (Full Year) |
|
Sales Turnover |
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|
4816.9 |
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Other Income |
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|
59.0 |
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Total Income |
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|
4875.9 |
|
Total Expenditure |
|
|
4038.7 |
|
Operating Profit |
|
|
837.2 |
|
Interest |
|
|
121.8 |
|
Gross Profit |
|
|
715.4 |
|
Depreciation |
|
|
256.6 |
|
Tax |
|
|
131.9 |
|
Reported PAT |
|
|
332.9 |
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|
|
|
1000.0 |
KEY RATIOS
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
Debt
Equity Ratio |
1.21 |
1.21 |
1.19 |
|
Long
Term Debt Equity Ratio |
0.76 |
0.75 |
0.75 |
|
Current
Ratio |
1.21 |
1.25 |
1.36 |
|
TURNOVER
RATIOS |
|
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|
Fixed
Assets |
1.97 |
1.87 |
1.71 |
|
Inventory
|
7.99 |
9.27 |
7.35 |
|
Debtors |
7.66 |
7.29 |
7.70 |
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Interest
Cover Ratio |
9.27 |
9.78 |
3.31 |
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Operating
Profit Margin (%) |
17.19 |
23.97 |
15.43 |
|
Profit
Before Interest and Tax Margin (%) |
13.08 |
19.32 |
10.20 |
|
Cash
Profit Margin (%) |
11.84 |
18.01 |
9.44 |
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Adjusted
Net Profit Margin (%) |
7.73 |
13.37 |
4.21 |
|
Return
on Capital Employed (%) |
28.23 |
39.90 |
17.26 |
|
Return
on Net Worth (%) |
36.95 |
61.03 |
15.64 |
STOCK PRICES
|
Face
Value |
Rs.1/- |
|
High |
Rs.40.85/- |
|
Low |
Rs.39.90/- |
LOCAL AGENCY FURTHER INFORMATION
History:
Premier Instruments & Controls(PRICOL), is engaged in
the business of manufacturing Dashboard Instruments & Accessories , Oil
Pumps and Idle Speed Control Valve Assembly. The company promoted by late N
Damodaran and L G Varadarajulu in 1972 has commenced commercial production in
1975.
Primarily an automobile ancillary unit, it diversified into electronic control
instruments, precision machine tools, panel and sensor instruments for defence
and industrial gauges. It plants at Coimbatore, Tamilnadu and Gurgaon, Haryana,
manufactures and assemble dashboard instruments.
The company came out with a rights issue in March 1995 to augment its
long-term resources and to meet additional working capital requirements.
The company entered into technical collaboration with various foreign
companies like N S International, US; Denso Corporation, Nippon Seiki Co. Ltd,
Toyoda Gosei Co., Kojima Press Inds., all of Japan and Deok Chang Machinery Co.
of Korea to upgrade its technology.
The company has marketing agents in Germany, France, Italy, Netherlands,
UK, US, Finland, Turkey, Egypt, Syria, Malaysia, Belgium and South
Africa.
The company's new product - Disk Brake is under testing at various
two-wheeler manufacturers and the commercial supplies are expected to be
commence soon.
The name of the company has been changed from Premier Instruments &
Controls Ltd to PRICOL Ltd.
OUTLOOK
Current
indications are India's GDP will grow around 7 to 7.5% during fiscal 2005-06.
The automotive industry is expected to grow around 15%. The company being primarily an auto component
industry is also expected to make a good progress during the current year.
Further, the company's foray into the accessories market will also contribute
to the growth.
Fixed assets
v
Land
v
Building
v
Plant and machinery
v
Furniture,
v
Fittings Equipments
v
Vehicles
As
per Website Details:
Pricol limited was established in 1972 at
Coimbatore, Tamil Nadu, India, and commenced manufacturing operations in 1975
in the precision engineering field of Automotive Instruments.
Today, Pricol is the market leader enjoying 53% of
the Automotive Instruments market share.
Plant II at Gurgaon near New Delhi, India, was
established in 1988 to cater to the needs of the OEM customers in North India.
Plant III and Plant IV were established at
Coimbatore, Tamil Nadu, India, in 1999 for rationalizing Pricol's manufacturing
activities.
In 1997, Pricol joined hands with DENSO
Corporation, Japan, a US $ 17.7 billion Auto Ancillary company to chalk out its
growth and future.
Denso Corporation, Japan is the Joint Venture Partner with Pricol and has
invested 12.5% in the equity capital of Pricol.
Automotive
Dashboard Instruments and Accessories for two-wheelers, three-wheelers,
four-wheelers, commercial vehicles, tractors, earth-moving equipments and
industrial applications
Instrument Clusters, Programmable Electronic
Speedometers and Tachometers, Mechanical Speedometers, Mechanical and
Electrical Pressure Gauges, Mechanical and Electrical Temperature Gauges,
Ammeters, Battery Condition Indicators, Voltmeters, Fuel Gauges, Electronic RPM
Meters, Mechanical RPM Meters, Electronic Hour Meters, Combination Meters, Oil
Level Gauges, Quartz Hour Counters, Quartz Clocks, Warning Lamps, etc.
Speedometer
Cables
Switches and Sensors such as Speed Sensors,
Pressure Sensors, Temperature Sensors, Fuel Level Sensors, Pressure Switches,
Oil Level Switches
Four-wheeler
items such as Wind Shield Washer Motor Kits, Cigarette Lighters, Heater
Ventilation Air Condition Control Units, Idle Speed Control Valves
Two-wheeler items such as Handle Bar Switches, Auto
Decompression Units, Chain Tensioner Assemblies, Auto Fuel Cocks, Gears &
Pinions, Hub Drives
Oil Pumps for two-wheelers and industrial
engines
Disc Brakes for two-wheelers
Electronic Textile Counters and Controls, Fare
Meters, Engine Monitoring Systems, Data Acquisition and Control Systems
Electronic
Road Speed Limiters for Commercial Vehicles
Precision Machined Components
Sintered
Components
Pricol exports about 12% of its turnover to the
USA, Canada, Mexico, South America, Europe, Turkey, Egypt, Middle East, Asia,
Australia, New Zealand, etc.
Pricol
spends, on an average, 3% of its turnover on research and development.
Pricol is an ISO 9001 company since 1993 and
certified for TS 16949 since August 2004.
Pricol has initiated Total Quality Management
(TQM), Total Productive Manufacturing (TPM), Supply Chain Management (SCM),
Enterprise Resource Planning (SAP R3 ERP), Collaborative Product Commerce (CPC
- Windchill) to render faster and efficient service to customers.
Strive for excellence in all we do through socially
and environmentally acceptable means
We will have market leadership through customer
delight. We will be a responsible corporate citizen and share the benefits with
society. We will make our customers, employees, suppliers and share-holders
feel proud of our association and want a long-term relationship with us
Respect
and concern for individuals
Customers,
Employees and Suppliers - Partners in the Value Chain
Encourage
innovation and improvement; accept noble failures
Continuous
learning
Pricol will provide value and satisfaction to
customers on products and services. This will be achieved through systematic
training and motivation of employees
Establish an excellent Total Productive
Manufacturing system with total involvement of all employees to achieve
effective utilization of all resources
Creation & Execution of Better Ideas for a Better Planet.
ENVIRONMENTAL MANAGEMENT SYSTEM (EMS) POLICY
Pricol shall
be a responsible corporate citizen in all its business operations and systems
to promote the health and well being of people and environment. This shall be
achieved through its occupational Safety, Health and Environmental (SHE) policy
and objectives with Total Employee Involvement (TEI).
1. SAFETY
Achieve zero accidents through eternal
vigilance, technology, employee education/motivation / participation and
prevent loss of precious resources of people, machines and materials.
2. HEALTH
Promote Employee Welfare and Quality of
Work Life (EW & QWL) to achieve the physical, emotional, mental and
spiritual health in their personal and professional lives through education and
habit formation.
3. ENVIRONMENT
Carry out eco-friendly manufacturing
and management practices that will comply with environmental legislation /
regulations, minimize wastes and create environment preservation awareness
amongst employees and the community.
SHE shall be continually improved through the P-D-C-A spiral in daily management with strategic and operational intent.
Pricol introduces lot of new products for various
applications to meet the growing market needs and drastic changes taking place
in automobile sector globally.
Following are our new products introduced recently,
for various segments.
Centralised
Lubrication System
Manifold
Absolute Pressure Sensors
Heater
Ventilation Air Conditioner Control Units
Fuel Level
Sensors with Thick Film Resistors
Programmable
Speedometers with LCD Odometer
Electronic
Auto Rickshaw Fare Meters
Full Sweep
Electrical Pressure Gauges and Temperature Gauges
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.44.42 |
|
UK
Pound |
1 |
Rs.78.01 |
|
Euro |
1 |
Rs.54.05 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
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 |