MIRA
INFORM REPORT
|
Report Date : |
26th
June, 2006. |
IDENTIFICATION
DETAILS
|
Name : |
BANG
OVERSEAS PRIVATE LIMITED |
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Registered Office : |
Masjid Manor, 2nd Floor, 16, Homi Modi Street, Fort, Mumbai
– 400 023, Maharashtra, India. |
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Country : |
India |
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Financials (as on) : |
31.03.2004 |
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Date of Incorporation : |
01.06.1992 |
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Com. Reg. No.: |
11-67013 |
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CIN No.: [Company
Identification No.] |
U51900MH1992PTC067013 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMB12486F |
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PAN No.: [Permanent
Account No.] |
AABCB2777M |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
The
Company is engaged in Manufacturing, Importing, Exporting and Trading of
Fabrics, Yarns and Readymade Garments. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
90000 |
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Status : |
Good |
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well-established and reputed company having satisfactory track.
Financial position is satisfactory. Trade relations are fair. Payments are
usually correct and as per commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office : |
Masjid Manor, 2nd Floor, 16, Homi Modi Street, Fort, Mumbai
– 400 023, Maharashtra, India. |
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Tel. No.: |
91-22-22043496 / 22841422 |
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Fax No.: |
91-22-56607970 |
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E-Mail : |
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Website : |
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Area : |
2500
sq. mtrs |
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Location : |
Owned |
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Factory
: |
Rajlaxmi
Commercial Complex, Unit No. 19, 20, 21, Mane Farm House, Opp. Durgesh Park,
Kalher Village, Bhiwandi - 421 302, District Thane, Maharashtra |
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Area : |
5654
sq.mtrs |
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Location : |
Rented |
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Branch: |
Unit
No. 5, Krishnanagar Industrial Area, Hosur Road, Near Christ College,
Bangalore. |
DIRECTORS
|
Name : |
Mr. Venugopal B. Bang |
|
Designation : |
Director |
|
Address : |
112
Hindu Colony, Lane 5, Dadar, Mumbai – 400 014, Maharashtra, India. |
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Date of Birth/Age : |
02.06.1954 |
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Date of Appointment : |
03.06.1992 |
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Name : |
Mr.
Brijgopal B. Bang |
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Designation : |
Managing
Director |
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Address : |
9,
Arun Building, 34, Dr. N.D. Road, Walkeshwar, Mumbai - 400 006, Maharashtra,
India. |
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Date of Birth/Age : |
26.07.1967 |
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Date of Appointment : |
03.06.1992 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
|
Bang
Brijgopal |
75000 |
|
Bang
Venugopal |
175000 |
|
Satnarayan
Sarda Jt. Ramkumar Sarda |
5000 |
|
Satnarayan
Sarda |
5000 |
|
Ramkishore
Sarda |
10000 |
|
Rangnath
Bang |
1000 |
|
Laxminiwas
Bang |
1000 |
|
Ramkumar
Bang |
1000 |
|
Balaram
Bang |
1000 |
|
Sampatkumar
Bang |
1000 |
|
Krishnakumar
Bang |
500 |
|
Parwatidevi
Bang |
500 |
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Kantadevi
Bang |
500 |
|
Saraswatidevi
Bang |
500 |
|
Pushpadevi
Bang |
500 |
|
Shobha
Bang |
500 |
|
Taradevi
Bang |
500 |
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Radhadevi
Bang |
500 |
|
Rekha
Bang |
500 |
|
Ramanujdas Bang |
500 |
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Narayndas
Bang |
500 |
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Girdhargopal
Bang |
500 |
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Rajgopal
Bang |
500 |
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TOTAL: |
281500 |
BUSINESS DETAILS
|
Line of Business : |
The
Company is engaged in Manufacturing, Importing, Exporting and Trading of
Fabrics, Yarns and Readymade Garments. |
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Products : |
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Imports from : |
Italy,
Mauritius, Austria, Germany, France, Portugal and Spain. |
PRODUCTION
STATUS
|
Particulars |
Actual Production (Qty / Pcs.) |
|
Readymade shirts
& trousers |
56822 |
|
Cotton shopping
bags |
750750 |
GENERAL
INFORMATION
|
No. of Employees : |
110 |
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Bankers : |
+
The
Federal Bank Limited, 32, Bombay Samachar Marg, Mumbai - 400 001 +
State
Bank of Mauritius Limited, 101, Raheja Centre, Free Press Journal Road,
Nariman Point, Mumbai - 400 021 Facility : Import L/C : Rs. 5.000
millions +
The
Nedungadi Bank Limited, 265, Birya
House, Bazar Gate Street, Fort, Mumbai - 400 001 Facilities : Cash
Credit : Rs. 5.000 millions Import
L/C : Rs. 23.500 millions Cash
Credit : Rs. 4.106 millions +
Citibank,
Mumbai +
Saraswat
Co-operative Bank Limited, Mumbai +
A.
P. Mahesh Urban Co-operative Bank +
ING
Vysya Bank Limited, Mittal Tower, A Wing, Nariman Point, Mumbai – 400 021. |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors : |
Rajendra K. Gupta & Associates |
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Qualification: |
Chartered Accountants |
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Address: |
C-29, Kshipra Society, Akurli X Road No. 1, Kandivli (East), Mumbai -
400 101. |
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Tel. No.: |
91-22-28871409
/ 28874879 |
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Associate: |
+
Bang
Data Forms Private Limited - It is involved in producing all type of
computer stationery, HDPE woven sacks, etc.
It has owned factory at Solapur, Maharashtra +
Bodywave
Fashions Private Limited - Acts as traders and resellers of
all types of textile goods. |
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 |
|
281500
|
Equity
Shares |
Rs. 10/- each |
Rs. 2.815 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2004 |
31.03.2003 |
31.03.2002 |
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|
SHAREHOLDERS FUNDS |
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1] Share Capital |
2.815 |
2.800 |
2.750 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
20.379 |
17.269 |
17.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
23.194 |
20.069 |
20.050 |
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LOAN FUNDS |
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1] Secured Loans |
8.629 |
8.278 |
4.105 |
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2] Unsecured Loans |
41.084 |
37.093 |
64.053 |
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TOTAL BORROWING |
49.713 |
45.371 |
68.158 |
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DEFERRED TAX LIABILITIES |
0.225 |
0.163 |
0.000 |
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TOTAL |
73.132 |
65.603 |
88.208 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3.134 |
2.241 |
2.375 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
1.260 |
1.260 |
0.010 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
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|
Inventories |
47.848
|
44.471 |
62.810 |
|
|
Sundry Debtors |
28.388
|
18.996 |
30.615 |
|
|
Cash & Bank Balances |
4.174
|
3.338 |
5.105 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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|
Loans & Advances |
11.136
|
6.368 |
7.341 |
|
Total Current Assets |
91.546
|
73.173 |
105.871 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
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|
|
Current Liabilities |
18.808
|
8.472 |
15.008 |
|
|
Provisions |
4.000
|
2.599 |
5.040 |
|
Total Current Liabilities |
22.808
|
11.071 |
20.048 |
|
|
Net Current Assets |
68.738
|
62.102 |
85.823 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
73.132 |
65.603 |
88.208 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2004 |
31.03.2003 |
31.03.2002 |
|
Sales Turnover [including other income] |
127.302 |
98.103 |
103.441 |
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Profit/(Loss)
Before Tax |
4.697 |
0.584 |
0.807 |
|
Provision
for Taxation |
1.661 |
0.245 |
0.300 |
|
Profit/(Loss)
After Tax |
3.036 |
0.339 |
0.507 |
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Export
Value |
10.245 |
84.178 |
3.779 |
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Total
Expenditure |
117.057 |
91.672 |
102.633 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2004 |
31.03.2003 |
31.03.2002 |
|
PAT / Total Income |
(%) |
2.38
|
0.35 |
0.49 |
|
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Net
Profit Margin (PBT/Sales) |
(%) |
3.69
|
0.60 |
0.78 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
4.90
|
0.76 |
0.75 |
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Return
on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.03 |
0.04 |
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Debt
Equity Ratio (Total
Liability/Networth) |
|
3.13
|
2.81 |
4.40 |
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Current
Ratio (Current
Asset/Current Liability) |
|
4.01
|
6.61 |
5.28 |
LOCAL AGENCY
FURTHER INFORMATION
The
company is in trade terms with:
+
Cotonificio
Albini SPA, Italy
+
Oltolina
SPA, Italy
+
GE
TE CA, SPA, Italy
+
Leggiuno
SPA, Italy
+
M.F.B.,
SPA, Italy
+
Consolidated
Fabrics Limited, Mauritius
+
Socota
Textile Mills Limited, Mauritius
+
Josef
Otten GmbH, Austria
+
Brennet
AG, Germany
+
Emanuel
Lang Textiles, France
+
Chatelard
S.A., France
+
Societe
Industrielle Altkirchoise, France
+
Sidogras
S.A., Spain
+
Mas
Molas S.A., Spain
+
TMG
- Tecidos Para Vestuario, Portugal
+
Fabrics
Textiles De Vizela Lda, Portugal
+
Pantaloon
Retail (India) Limited
+
Pantaloon
House, G-11, MIDC, Cross Road "A", Andheri (East), Mumbai
+
S.
Kumar's Nationwide Limited
"Avadh",
Avadhesh Parisar, Shree Ram Mills Premises, Worli, Mumbai - 400 018
+
Bombay
Dyeing Manufacturing Company Limited
Pandurang Budhkar Marg, Mumbai - 400 025
+
Swati
Chemco
114,
Gambhir Industrial Estate, C-Wing, Vishweswar Nagar, Goregaon (East), Mumbai
+
Styled
Apparels
Ram Nimi Building, Mandlik Road, Colaba, Mumbai - 400 001
+
Globus
Stores Private Limited
Raheja Main Avenue Junction, V. P. Road, Santacruz, Mumbai
+
Kewal
Kiran & Company
B/101,
Synthofine Industrial Estate, Opp. Veerwani Industrial Estate, Goregaon (East),
Mumbai
+
Advin
Impex
Opp.
Vrundavan Shopping Centre, Nagori Pole Ratan Pole, Ahmedabad - 380 001, Gujarat
+
Chandra
Textiles
504, Chandra Chowk, Kalbadevi, Mumbai - 400 002
+
Business
Inc.,
2/2, Madhuban Apartment, Pitampura, Delhi - 110 034
Fixed
Assets:
Plant
& Machinery, Office Equipments, Furniture, Computer System and Vehicles.
Financial Performance and Review of
Operation:
During
the year under review the company had made turnover of Rs. 123.111 millions and
earned the profit of Rs. 3.035 million after providing for taxation Rs. 1.600
million as compared to previous year Rs. 0.088 millions.
It
imports fabrics from Italy, Mauritius, Austria, Germany, France, Portugal and
Spain.
|
Name
of the company |
Bang Overseas Private Limited |
|
Presented By |
ING
Vysya Bank Limited, Mittal Tower, A Wing, Nariman Point, Mumbai – 400 021. |
|
1)
Date and description of instrument creating the change |
General
hypothecation Agreement dated 10.11.2004 |
|
2)
Amount secured by the charge/amount owing on the securities of charge |
Rs.
55.000 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 exclusive charge on the entire stock of raw material, stock in
process, finished goods, plant & machinery, office equipment, furniture,
computers, vehicles and all other movables, both present and future wherever
lying, situated or in transit. Hypothecation
by way of exclusive charge on the entire book debts, receivables, claims of
the company, both present and futire. |
|
4)
Gist of the terms and conditions and extent and operation of the charge. |
Interest
for CC @ ING Vysya Bank Reference Rate (IVRR)+ 0.25% p.a. compounded monthly
or such other rate as may be prescribed by the bank from time to time.
Commission and charges on FLC shall be as per bank Norms / FEDAI Guidelines
from time to time. Security
to secure CC of Rs. 15.000 Millions, FLC (DA/DP) of Rs. 40.000 Millions
together with interest, cost, expenses, charges, commission etc. |
|
5)
Name and Address and description of the person entitled to the charge. |
ING
Vysya Bank Limited, Mittal Tower, A Wing, Nariman Point, Mumbai – 400 021. |
|
6)
Date and brief description of
instrument modifying the charge |
Not
Applicable |
|
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. |
Not
Applicable |
|
Name
of the company |
Bang Overseas Private Limited |
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|
Presented By |
Mr.
Venugopal Bang Director of the company |
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|
1)
Date and description of instrument creating the change |
Cash
Credit agreement, Demand Promissory note, Hypothecation note dated 10.12.2002
executed by Bang Overseas Private Limited in favour of “The A P Mahesh
Co-operative Urban Bank Limited”. (There in and herein after referred to as
‘said Bank’) |
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|
2)
Amount secured by the charge/amount owing on the securities of charge |
Cash
Credit Rs. 10.000 Millions (8.000 Millions against Book Debts and Rs. 2.000
Millions against Stock) Foreign
Letter of Credit limited Rs. 40.000 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
of Stock consisting of Raw Fabrics and process fabrics with 25% margin in the
company’s own godown or in open with in the firm premises. Hypothecation
and first charge on all book debts margin of 30 % outstanding money
receivable claim bill which are now due and in future also may becoe due and
owing to the company. |
||||||||||||||||
|
4)
Gist of the terms and conditions and extent and operation of the charge. |
Cash
Credit Limit: 10.000
Millions (8.000 Millions against Book Debts and Rs. 2.000 Millions against
Stock) Rate
of Interest: 16%
p.a. Subject to change from time to time as decided by the Banks Board of
Directors. Period
of Sanction: One
year Security:
Primary:
First Charge on all current assets of the company. Collateral
Security: First
charge on all the fixed assets of the company book value as on 31.03.2002 is
Rs. 2.428 Millions. Drawing
of the account should be regulated strictly on the basis of stock held
keeping the stipulated margin of 25% and Book Debts with margin of 30%. Document
should be drawn in strict conformity with the term FLC and all exports are
backed up by LCs opened by banks of international repute. |
||||||||||||||||
|
5)
Name and Address and description of the person entitled to the charge. |
The A
P Mahesh Co-operative Urban Bank Limited, Bhuleshwar Branch 103, 1st
Floor, Hotel Adarsh Baug,Dr. Atamaram Merchant Road, Bhuleshwar, Mumbai – 400
002. |
||||||||||||||||
|
6)
Date and brief description of
instrument modifying the charge |
Agreement
dated 09.06.2004 Instrument
of Hypothecation of Goods. Instrument
of Hypothecation of Book Debts. |
||||||||||||||||
|
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. |
The
charge of the A P Mahesh Co-operative Urban Bank Limited on Hypothecation of
goods & book debts, are modified as enhancement of Cash Credit Limit from
10.000 Millions to Rs. 15.000 Millions. The hypothecation of goods, Book
Debts cover following credit limits.
Margin: Stock Raw Materials – 25% Stock
in Process – 40% Finished
Goods – 30% Book
Debts – 40% on debt should be 60 days only. Period
of Sanction: 12
months from the date of availment. Repayable: on Demand |
|
Name
of the company |
Bang Overseas Private Limited |
|
Presented By |
Mr.
Venugopal Bang Director of the company |
|
1)
Date and description of instrument creating the change |
Cash
Credit agreement, Demand Promissory note, Hypothecation note dated 10.12.2002
executed by Bang Overseas Private Limited in favour of “The A P Mahesh
Co-operative Urban Bank Limited”. (There in and herein after referred to as
‘said Bank’) |
|
2)
Amount secured by the charge/amount owing on the securities of charge |
Cash
Credit Rs. 10.000 Millions (8.000 Millions against Book Debts and Rs. 2.000
Millions against Stock) Foreign
Letter of Credit limited Rs. 40.000 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
of Stock consisting of Raw Fabrics and process fabrics with 25% margin in the
company’s own godown or in open with in the firm premises. Hypothecation
and first charge on all book debts margin of 30 % outstanding money
receivable claim bill which are now due and in future also may becoe due and
owing to the company. |
|
4)
Gist of the terms and conditions and extent and operation of the charge. |
Cash
Credit Limit: 10.000
Millions (8.000 Millions against Book Debts and Rs. 2.000 Millions against
Stock) Rate
of Interest: 16%
p.a. Subject to change from time to time as decided by the Banks Board of
Directors. Period
of Sanction: One
year Security:
Primary:
First Charge on all current assets of the company. Collateral
Security: First
charge on all the fixed assets of the company book value as on 31.03.2002 is
Rs. 2.428 Millions. Drawing
of the account should be regulated strictly on the basis of stock held
keeping the stipulated margin of 25% and Book Debts with margin of 30%. Document
should be drawn in strict conformity with the term FLC and all exports are
backed up by LCs opened by banks of international repute. |
|
5)
Name and Address and description of the person entitled to the charge. |
The A
P Mahesh Co-operative Urban Bank Limited, Bhuleshwar Branch 103, 1st
Floor, Hotel Adarsh Baug,Dr. Atamaram Merchant Road, Bhuleshwar, Mumbai – 400
002. |
|
6)
Date and brief description of
instrument modifying the charge |
Not
Applicable |
|
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. |
Not
Applicable |
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.46.36 |
|
UK
Pound |
1 |
Rs.84.49 |
|
Euro |
1 |
Rs.58.38 |
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 |
NO |
|
--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 |