MIRA
INFORM REPORT
|
Report Date : |
7th
June 2006 |
IDENTIFICATION
DETAILS
|
Name : |
KUN
UNITED CAR TRAX PRIVATE LIMITED |
|
|
|
|
Registered Office : |
6-2-953
Krishna Plaza, Khairtabad, Hyderabad- 500004, Andhra Pradesh |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2005 |
|
|
|
|
Date of Incorporation : |
16.08.2000 |
|
|
|
|
Com. Reg. No.: |
01-35124 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U50103AP2000PTC035124 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
HYDK00920D |
|
|
|
|
Legal Form : |
Private
Limited Liability Company |
|
|
|
|
Line of Business : |
Sales
and Services of Motor Cars |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD
70000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular
|
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject
is a well established and reputed Hyndai Car dealer. Trade relations are
fair. Financial position is good. Payments are correct and as per commitments.
The company is doing very well. It can be considered good for any normal
business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
6-2-953
Krishna Plaza, Khairtabad, Hyderabad- 500004, Andhra Pradesh |
|
Tel. No.: |
91-40-55631177/78/79/
23373956 / 23373986 |
|
Fax No.: |
91-40-55631180 |
|
E-Mail : |
|
|
|
|
|
Services
Centre : |
Shop
No. 1-8-670, Azamabad, RTC Cross Road, Hyderabad, Andhra Pradesh, India |
|
Tel.
No.: |
91-40-27625520
/ 27676945 / 27621346 / 27662920 / 27668678 / 27668761 / 55588729 |
DIRECTORS
|
Name : |
Krishna
Mohan Katar |
|
Designation : |
Director
|
|
Address : |
1/74/18
Madhavpur Road Seri Lingampally, Mandal Hyderabad, Rangareddy, Andhra
Pradesh - 500034 |
|
Date of Birth/Age : |
18/11/1966 |
|
Qualification : |
Engineering
B. E. |
|
Experience : |
5
years |
|
Date of Appointment : |
16/08/2000 |
|
|
|
|
Name : |
Gudigopuram
Gautham |
|
Designation : |
Director
|
|
Address : |
Flat
202, Hallmark Residency Road – 3 Bajara Hills Hyderabad, Andhra Pradesh - 500034 |
|
Date of Birth/Age : |
03/03/1969 |
|
Qualification : |
Engineering
B. E. |
|
Experience : |
5
years |
|
Date of Appointment : |
16/08/2000 |
|
|
|
|
Name : |
Venkatesh
Uppuswamy |
|
Designation : |
Director
|
|
Address : |
83,
Aspiran Garden Kilpauk, Chennai – 600010, Tamilnadu India |
|
Date of Birth/Age : |
21/11/1967 |
|
Date of Appointment : |
14/06/2001 |
|
|
|
|
Name : |
Arun
Kumar Uppuswamy |
|
Designation : |
Director
|
|
Address : |
83,
Aspiran Garden Kilpauk, Chennai – 600010, Tamilnadu India |
|
Date of Birth/Age : |
15/05/1975 |
|
Date of Appointment : |
14/06/2001 |
|
|
|
|
Name : |
P P
Subramani Suresh |
|
Designation : |
Director
|
|
Address : |
# 7,
Anugraha Bharati Nagar, Arembakkam, Chennai – 6000101, Tamilnadu |
|
Date of Birth/Age : |
16/03/1968 |
|
Date of Appointment : |
14/06/2001 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
|
No. of Shares |
|
Venkatesh
Uppuswamy |
|
2500 |
|
Arun
Kumar Uppuswamy |
|
2500 |
|
Krishna
Mohan Katar |
|
120000 |
|
Gudigopuram
Gautham |
|
120000 |
|
Kun
Auto Company Private Limited |
|
255000 |
|
|
|
|
BUSINESS DETAILS
|
Line of Business : |
Sales
and Services of Motor Cars |
|
|
|
|
Products : |
Motor
Cars |
|
|
|
|
Brand Names : |
“HYUNDAI” |
|
|
|
GENERAL
INFORMATION
|
|
|
||||||
|
Bankers : |
v
ICICI
Bank Limited v
Kotak
Mahindra Primus Limited |
||||||
|
|
|
||||||
|
Facilities : |
|
|
|
|
|
Banking Relations : |
Satisfactory
|
|
|
|
|
Auditors : |
Sunil
Parmar and Company Chartered
Accountants 5/1 2nd
Floor, Lename East 5-9-189, Abid Road, Hyderabad – 500001, India |
|
Tel No.: |
91-40-233875 |
|
|
91-40-233876 |
|
Fax No: |
|
|
|
|
|
Associates/Subsidiaries : |
v
Kun
Auto Company Private Limited v
Kun
Management Services Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
500000 |
Equity
Shares |
Rs. 10/- each |
Rs. 5.000 millions |
|
|
|
|
|
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
500000 |
Equity
Shares |
Rs. 10/- each |
Rs. 5.000 millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
5.000 |
5.000 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
12.601 |
7.318 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
17.601 |
12.318 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
97.295 |
68.162 |
|
|
2] Unsecured Loans |
|
2.473 |
1.930 |
|
|
TOTAL BORROWING |
|
99.768 |
70.092 |
|
|
DEFERRED TAX LIABILITIES |
|
1.440 |
1.091 |
|
|
|
|
|
|
|
|
TOTAL |
|
118.809 |
83.501 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
10.803 |
9.730 |
|
|
Capital work-in-progress |
|
|
|
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
|
|
|
DEFERREX TAX ASSETS |
|
|
|
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
|
|
|
Sundry Debtors |
|
|
|
|
|
Cash & Bank Balances |
|
162.525 |
104.286 |
|
|
Other Current Assets |
|
|
|
|
|
Loans & Advances |
|
|
|
|
Total Current Assets |
|
162.525 |
104.286 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
58.257 |
32.399 |
|
|
Provisions |
|
|
|
|
Total Current Liabilities |
|
58.257 |
32.399 |
|
|
Net Current Assets |
|
104.268 |
71.887 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
3.738 |
1.884 |
|
|
|
|
|
|
|
|
TOTAL |
|
118.809 |
83.501 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
|
968.919 |
894.191 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
|
11.284 |
9.228 |
|
Provision
for Taxation |
|
4.446 |
1.178 |
|
Profit/(Loss)
After Tax |
|
6.838 |
8.050 |
|
|
|
|
|
|
Total
Expenditure |
|
954.634 |
884.963 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
|
0.70 |
0.90 |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
|
1.16 |
1.03 |
|
|
|
|
|
|
|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
6.51 |
8.09 |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
|
0.64 |
0.74 |
|
|
|
|
|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
|
8.97 |
8.32 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
|
2.78 |
3.21 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed
Assets :
v
Building
v
Plant
and Machinery
v
Electrical
Fittings
v
Furniture
and Fittings
v
Computer,
peripherals and communication systems
v
Office
equipments
v
Air
conditioners, coolers, fridge , audio visual equipments
v
Fax
machines
v
Pagers
v
Television
Retirement
Benefits
Gratuity
is expensed as and when paid.
Contributions
to provided fund are charged to the profit and loss account.
Revenue
recognition
Revenue
form sale of cars is recognised when significant risks and rewards in respect
of ownership are transferred to the customer. Revenue from car and accessory /
spare part sales is state exclusive of returns and sales tax.
Income
tax expenses :
Current
Tax :
The
current charge for income taxes is calculated in accordance with the relevant
tax regulations applicable to the company.
Deferred
tax :
Deferred
tax charge or credit reflects the tax effects of timing difference between
accounting income and taxable income for the period. The deferred tax charge or
credit and the corresponding deferred tax liability or assets are recognised
using the tax rates that have been enacted or substantially enacted by the
balance sheet date. Deferred tax assets are recognized only to the extent there
is reasonable certainly that the assets can be realized in future, however
where there is unescorted depreciation or carry forward of losses, differed tax
assets are recognized only if there is a virtual certainty of realization of
such assets. Deferred tax assets are reviewed as at each balance sheet date and
written down or written up to reflect the amount that is reasonably certain to
be realized.
Operations :
During
the year review the company has made a name for itself as the best Hyundai car
dealers in Hyderabad. The company also received on award for the highest number
of cars financed through Hyundai finance and also an extremely high rating for
its workshop and customer support services. In quantities terms, the number of
cars sold has gone up from 2056 in the previous year to 2232 during the current
year. Consequently sales of cars have shot up from 822.000 millions in the
previous year to Rs. 881.200 millions in 2004 / 05. this is an increase of
approximately 7 %. Income from sale of spares and services has also increased
by over 19 % in comparison to the previous year. Profit before tax has
increased by nearly 23 %. Despite intense competition from the other deqalers and also other cars. The
company has been able to hold its own and in fact supassed other dealers, in
sales consistently during each quarter of the year.
Future
Outlook :
The
company is now fully entrenched in the market. During the current year the
branch opened at Kurnool has become a fully fledged dealership. With newer
models with better fuel fiercely and updated of existing models the sales
during the current year are expected to increase signification. The company’s
policy of excellent of after sales services has paid dividends in the past and
will continue to be a major revenue earner in the future. Despite the heavy
discounting in the selling prices the company moer than makes up for the same
in repairs and servicing. The workshop will continue to be the revenue driver
in the future also.
Finance
:
During the year the company accepted continued loans from Kotak Mahindra Primus Limited, ICICI Bank Limited and Kun Auto Company Limited and form directors.
|
Name of the company |
KUN UNITED CAR TRAX PRIVATE LIMITED |
|
Presented By |
Mr.
K Krishna Mohan |
|
1) Date and description of instrument creating the change |
Dealer Finance Agreement for Wholesale financing deted 19the March 2002 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 15.000 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 |
Hypothecation by way of First charge on all the current assets including vehicles debtors, advance made for purchasing the vehicles now owned or hereafter acquired by company and that now are or hereafter from time to time during this security shall be brought in stored or be in or about the premises warehouses godwns and show rooms of the company at company’s address set forth above or anywhere else, including all vehicles in courses of transit or delivery and all book dents and receivables of company arising on any sale, else, hire purchase or other dispositions by company of vehicles. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Interest rate @ 16.00 % p.a. payable monthly Flat penal Interest @ 2 % p.m. |
|
5) Name and Address and description of the person entitled to the charge. |
Kotak Mahindra Primus Limited 36/38 A, Nariman Bhavan Nariman Point Mumbai – 400021 |
|
6) Date and brief description of instrument modifying the charge |
NA |
|
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. |
NA |
|
|
|
|
Name of the company |
KUN UNITED CAR TRAX PRIVATE LIMITED |
|
Presented By |
Mr.
K Krishna Mohan |
|
1) Date and description of instrument creating the change |
Dealer Finance Agreement for Wholesale financing deted 11th February 2002 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 15.000 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 |
Hypothecation by way of First charge on all the current assets including vehicles debtors, advance made for purchasing the vehicles now owned or hereafter acquired by company and that now are or hereafter from time to time during this security shall be brought in stored or be in or about the premises warehouses godwns and show rooms of the company at company’s address set forth above or anywhere else, including all vehicles in courses of transit or delivery and all book dents and receivables of company arising on any sale, else, hire purchase or other dispositions by company of vehicles. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Interest rate @ 16.00 % p.a. payable monthly Flat penal Interest @ 2 % p.m. |
|
5) Name and Address and description of the person entitled to the charge. |
Kotak Mahindra Primus Limited 36/38 A, Nariman Bhavan Nariman Point Mumbai – 400021 |
|
6) Date and brief description of instrument modifying the charge |
NA |
|
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. |
NA |
|
|
|
|
Name of the company |
KUN UNITED CAR TRAX PRIVATE LIMITED |
|
Presented By |
Mr.
K Krishna Mohan |
|
1) Date and description of instrument creating the change |
Dealer Finance Agreement for Wholesale financing deted 28th November 2003 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 10.000 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 |
Hypothecation by way of First charge on all the current assets including vehicles debtors, advance made for purchasing the vehicles now owned or hereafter acquired by company and that now are or hereafter from time to time during this security shall be brought in stored or be in or about the premises warehouses godwns and show rooms of the company at company’s address set forth above or anywhere else, including all vehicles in courses of transit or delivery and all book dents and receivables of company arising on any sale, else, hire purchase or other dispositions by company of vehicles. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
As may be decided form time to time by the Kotak Mahindra Primus Limited at present 10.50 % p.a. |
|
5) Name and Address and description of the person entitled to the charge. |
Kotak Mahindra Primus Limited 36/38 A, Nariman Bhavan Nariman Point Mumbai – 400021 |
|
6) Date and brief description of instrument modifying the charge |
NA |
|
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. |
NA |
|
|
|
|
Name of the company |
KUN UNITED CAR TRAX PRIVATE LIMITED |
|
Presented By |
Mr.
K Krishna Mohan |
|
1) Date and description of instrument creating the change |
Dealer Finance Agreement for Wholesale financing deted 8th August 2005 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 10.000 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 |
Hypothecation by way of First charge on all the current assets including vehicles debtors, advance made for purchasing the vehicles now owned or hereafter acquired by company and that now are or hereafter from time to time during this security shall be brought in stored or be in or about the premises warehouses godwns and show rooms of the company at company’s address set forth above or anywhere else, including all vehicles in courses of transit or delivery and all book dents and receivables of company arising on any sale, else, hire purchase or other dispositions by company of vehicles. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
The charges operate as security inters alia for the due payment and discharge by the company to Kotak Mahindra Primus Limited financial facility aggregating to limit of Rs. 5.000 millions together with interest, costs charges expenses and all othe rmoney payable by it to Kotak Mahindra Primus Limited under the relevant documents The company shall be keep the hypothecation assets in good conditions as its own consts and to insure the hypothecated assets The securities crated under the said facilities are to be continuing securities for all the money intentness and liability aforesaid. |
|
5) Name and Address and description of the person entitled to the charge. |
Kotak Mahindra Primus Limited 36/38 A, Nariman Bhavan Nariman Point Mumbai – 400021 |
|
6) Date and brief description of instrument modifying the charge |
NA |
|
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. |
NA |
|
|
|
|
Name of the company |
KUN UNITED CAR TRAX PRIVATE LIMITED |
|
Presented By |
Mr.
K Krishna Mohan |
|
1) Date and description of instrument creating the change |
Dealer Finance Agreement for Wholesale financing deted 21st July 2005 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 25.000 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 |
Hypothecation by way of First charge on all the current assets including vehicles debtors, advance made for purchasing the vehicles now owned or hereafter acquired by company and that now are or hereafter from time to time during this security shall be brought in stored or be in or about the premises warehouses godwns and show rooms of the company at company’s address set forth above or anywhere else, including all vehicles in courses of transit or delivery and all book dents and receivables of company arising on any sale, else, hire purchase or other dispositions by company of vehicles. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Interest rate @ 11.00 % p.a. payable monthly Flat penal Interest @ 2 % p.m. |
|
5) Name and Address and description of the person entitled to the charge. |
Kotak Mahindra Primus Limited 36/38 A, Nariman Bhavan Nariman Point Mumbai – 400021 |
|
6) Date and brief description of instrument modifying the charge |
NA |
|
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. |
NA |
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs. 46.06 |
|
UK
Pound |
1 |
Rs. 85.27 |
|
Euro |
1 |
Rs. 58.88 |
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 |
NO |
|
--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 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/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 |