MIRA INFORM REPORT
|
Report
Date : |
25.11..2006 |
IDENTIFICATION
DETAILS
|
Correct
Name : |
HOSPIMEDICA INTERNATIONAL LIMITED |
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Registered
Office : |
Leelawanti
House, 58/10, Ashok Nagar, New Delhi-110018, India |
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Country: |
India |
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Financials
(as on): |
31.03.2004 |
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Date
of Incorporation : |
16.01.1997 |
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Com.
Reg. No.: |
55-84505 |
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CIN
No.: |
U51507DL1997PLC084505 |
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TAN
No.: (Tax Deduction & Collection Account No.) |
DELH02216E |
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Legal
Form : |
Private Limited Liability Company |
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Line
of Business : |
Importers, Distributors &
Suppliers of Medical Equipments |
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 25000 |
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Status
: |
Satisfactory
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Payment
Behaviour : |
Usually
Correct |
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Litigation
: |
Clear |
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Comments
: |
Subject is a well – established company having
satisfactory track records. Trade relations are fair. General financial
position is satisfactory. 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/Ware House : |
Leelawanti
House, 58/10, Ashok Nagar, New Delhi-110018, India |
|
Tel.
No.: |
91-11-2540 0984, 2514 6164, 2514 6165, 2540 0984 |
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Fax
No.: |
91-11-2549 2977, 2513 0164 |
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E-Mail
: |
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Website
: |
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Area: |
15,000 Sq.ft (It is a 3-storey building owned by
the subject) |
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Location : |
Commercial |
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Sales
Office: |
Bangalore Mr R G Kulkarni, House No. 27,
Shree Nivasa, Nagarbhavi Road, Gangadhar Layout, Vijay Nagar, bangalore 560
040 Mobile – 91- 9342502115 Chandigath House No. 1698, Phase - III, B-2
Mohali, Chandigarh 160 059 Mobile - 91 -9316519854 Chennai Sarada Nilayam No. 3, 26th
Street, Asthalakshmi Nagar, Allapakkam, Chennai 600 116 Mobile - 91- 9382785570 Indore 359/A, Mahalaxmi Nagar, Opp.
Bombay Hospital, Ring Road, Indore 452010 Mobile - 91- 9302136827 Kolkata 18/8, B M Debya Road, Kolkata
700 061 Phone - 91- 33 2493 5761 Mumbai C-3 Vireshwar Sneh, Sant Janabai
Road, Dixit Road Extension, Vile Parle (East), Mumbai 400 057 Phone - 91- 9322302152 Fax - 91- 22- 2610 6740 Pune Disney Park, Survey No. 58/6,
Building - H, Flat No. 19, Wanda Worrie, Pune 411 022 Phone - 91 -9325503074 Trivandrum Hamilton & Bailey,
Pallottigiri Building, Opp. Margin Free Market, Medical College, P.O.
Trivandrum, Kerala Phone - 91 -9388485329 |
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Branches
: |
Located
At: Mumbai, Kolkata, Chennai and Lucknow |
DIRECTORS
|
Name : |
Mr. Sunil Anand |
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Designation
: |
Managing Director / Chairman |
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Address
: |
58/10, Third Floor, Ashok Nagar, New Delhi 110 018 |
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Date
of Birth/Age : |
06.04.1960 |
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Qualification
: |
Graduate
in Electronic Engineering |
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Date
of Appointment : |
16.01.1997 |
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|
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|
Name : |
Mr. Sanjeev Anand |
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Designation
: |
Director |
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Address
: |
4B/27, Tilak Nagar, New Delhi 110 018 |
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Date
of Birth/Age : |
03.07.1964 |
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Date
of Appointment : |
16.01.1997 |
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Name : |
Ms. Meeta Anand |
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Designation
: |
Director |
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Address
: |
58/10, Third Floor, Ashok Nagar, New Delhi 110 018 |
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Date
of Birth/Age : |
29.07.1967 |
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Date
of Appointment : |
16.01.1997 |
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Name : |
M/s Suresh K Meher & Associates |
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Designation
: |
Company Sectary |
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Address
: |
39 DDA (LIG) Flats, Motia Khan, Pahar Ganj, New Delhi 110
055 |
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E-Mail.:
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Name : |
Mr. O P Anand |
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Designation
: |
General Manager (Admin) |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Mr. Sunil
Anand |
311,645 |
67.94 |
|
Mr.
Sanjiv Anand |
69,644 |
15.18 |
|
Ms Meeta
Anand |
12,215 |
2.66 |
|
Mr.
Rajinder Kumar |
10 |
0.00 |
|
Mr.
Sushil Anand |
10 |
0.00 |
|
Ms Dolly
Aggarwal |
10 |
0.00 |
|
Mr. Bhim Arora |
10 |
0.00 |
|
Ms Mamla
Rani |
10 |
0.00 |
|
Ms Sarla
Arora |
10 |
0.00 |
|
Ms Ritika
Kapoor |
10 |
0.00 |
|
M/s
Sanjeev Anand, HUF |
4,160 |
0.91 |
|
Ms Bharti
Anand |
11,000 |
2.40 |
|
Ms Anju
Garg |
1 |
0.00 |
|
M/s Sani
Sales India Pvt Ltd |
50,000 |
10.90 |
|
Total |
458,735 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Importers, Distributors &
Suppliers of Medical Equipments |
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|
|
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Products
: |
Anaesthesiology/OT
Products v Ascepticization Equipment v Monitors for ICU, CCU v O.T. Lights v O.T. Tables v Patient Simulation v Patient Warming System v
Recovery
Room Monitors Blood
Bank v Blood Collection Scale/Mixer v Donor Couch v
Tube
Sealers Burns/Plastic
Surgery v Burn Treatment Gel/Solution v
Hyperbaric
Chambers Central
Sterile Supplies v Bulk Steam Steriliser v
Waste
Steriliser cum Shredder ENT v Air/Water Caloric Stimulators v Balance Assessment System v BERA Equipment v ENG/VNG Equipment v Facial Nerve Monitor v Sleep/Apnea Analysis Equipment Hospital Furniture v Beds v Patient Trolleys Hospital
Waste Management v Cremation Furnaces v Incinerators v
Integrated
Shredder and Steriliser Neuro
Sciences v ASA v Cognitrace v Digital EEG System v Intra Operative Never Monitors v Magnetic Stimulators v Polysomnography System v RF Pain Management Generator v Thermal Sensory Analyser Obstetrics v Female Sexual Dysfunction Monitor v Incontinence Diagnostic &
Therapy Equipment v Obstetric & Gynaecology
Chair/Bed PT / Physical Medicine v Back Care System v Body Composition Analyser v CAD CAM Equipment v Casual Treatment v Holistic Medicine Equipment v Combination Therapy v CPM Equipment for Upper/Lower
Limbs v Electric High Power Massager v EMG Biofeedback v Ergometers/Exercise Cycles v Fall Risk Assessment v Foot Pressure Distribution
Assessment System v Functional Electrical Simulator v Gait/Motion Analysis System v Hydro Therapy Equipment v Isokinetic Systems v Laser Therapy Units v Ultrasound Therapy v Microwave Therapy v Magnetic Therapy Equipment Paediatrics v Deflux v Vital Sign Monitor Psychiatry v EEG/ERP System v Digital EEG System v ECT Machine v Polysomnography System v
Transcranial
Magnetic Stimulator Rescue/Fire Disaster Management v Ambulance Trolley Stretchers v Burn Treatment Gel/Solution v Leg Injury Simulator v Splints v Stretchers Urology v Cryotherapy Equipment v Deflux v Holmium Laser v PSA Detection Kit v PVP Green Light Laser for
Treatment of Prostate v Test Kit for Bladder Cancer v Uroflowmetry Equipment v
Urodynamics
Equipment |
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|
|
|
Agencies
Held : |
v
Enraf
Nonius B. V., The Netherlands v
Medelec
Limited, U.K. v
Merivaara
Instrumentation Corporation, Finland v
Collin
Corporation, Japan v
Reimers
and Jannsen GmbH, Germany |
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Exports
to : |
India |
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Imports
from : |
Medical equipments from Japan, USA, Germany, France, The
Netherlands, UK and other European countries |
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Terms
: |
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Selling : |
Cash, L/C or Credit (60 days) terms |
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Purchasing : |
LC basis |
GENERAL INFORMATION
|
Customers
: |
Wholesalers, Retailers and Government Bodies Some of
its major customers includes: v
All
India Institute of Medical Sciences, New Delhi, India v
G.
B. Pant Super Speciality Hospital, New Delhi, India. v
Postgraduate
Institute of Medical Education and Research, India v
Bombay
Hospital, Mumbai, Maharashtra, India v
All
India Institute of Physical Medicine and Rehabilitation, India |
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No. of
Employees : |
100 |
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Bankers
: |
v
Punjab
& Sind Bank, Maya Puri, New Delhi 110 064 v
State Bank of India, Tilak Nagar, New Delhi |
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Facilities : |
Agreement of Hypothecation
of Goods to Secure a Demand Cash Credit Rs. 0.700 Millions with Punjab &
Sind Bank Cash Credit facilities: Rs.13.500 Millions with State Bank
of India, Tilak Nagar, New Delhi Bank Agreement dated 26th
October, 2004 and it is secured by First charge on entire Currents Assets of
the Company including medical equipments, goods-in-transit, receivables of
the Company and Equitable Mortgage of Property situated at 4B/27 Tilak Nagar,
New Delhi 110 018 in the Name of Shri Sanjeev Anand. Equitable Mortgage of Flat No. C-3, Vireshwar Shah, Sant Janabi Road, Dixit
Road Extn., Vile Parle (East) Mumbai in the name of Mr. Sunil Anand. Assignment of LIC policies in the name of
Mr. Sunil Anand & Mrs. Meeta Anand and Personal Guarantee of Mr. Sunil
Anand, Mr. Sanjeev Anand and Mrs. Meeta Anand |
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Banking Relations : |
Satisfactory |
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Auditors
: |
M/s Bhupesh Dhingra &
Company Chartered Accountant |
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Address:
|
604 Padma Tower – II, Rajendra
Place, New Delhi 110 008 |
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Tel.
No.: |
91-11-2572 4472 |
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Fax
No.: |
91-11-2574 2707 |
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Associates/Subsidiaries
: |
Medical Point India Private Limited Private Limited Company |
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 |
|
458735 |
Equity
Shares |
Rs.10/- each |
Rs. 4.587 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
4.587 |
4.587 |
4.587 |
|
|
2] Share
Application Money |
0.000 |
1.366 |
1.367 |
|
|
3]
Reserves & Surplus |
1.778 |
1.688 |
1.289 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
6.365 |
7.641 |
7.243 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1] Secured
Loans |
6.625 |
2.164 |
1.833 |
|
|
2]
Unsecured Loans |
1.000 |
1.000 |
1.700 |
|
TOTAL
BORROWING
|
7.625 |
3.164 |
3.533 |
|
|
DEFERRED
TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
13.990 |
10.805 |
10.776 |
|
|
|
|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
3.725 |
3.182 |
2.237 |
|
Capital work-in-progress
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
INVESTMENT
|
0.000 |
0.000 |
0.000 |
|
DEFERREX TAX ASSETS
|
0.005 |
0.017 |
(0.024) |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
24.698 |
9.299 |
9.854 |
|
|
Sundry Debtors
|
10.528 |
10.251 |
8.027 |
|
|
Cash & Bank Balances
|
3.649 |
6.310 |
3.666 |
|
|
Other Current Assets
|
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances
|
5.766 |
4.598 |
5.625 |
Total Current Assets
|
44.641 |
30.458 |
27.172 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
33.756 |
22.547 |
18.360 |
|
|
Provisions
|
0.650 |
0.305 |
0.249 |
Total Current Liabilities
|
34.406 |
22.852 |
18.609 |
|
Net
Current Assets
|
10.235 |
7.606 |
8.563 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.025 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
13.990 |
10.805 |
10.776 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2005 |
31.03.2004 |
31.03.2003 |
Sales Turnover [including other income]
|
53.934 |
42.059 |
28.346 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
0.752 |
0.662 |
0.409 |
Provision for Taxation
|
0.000 |
0.304 |
0.249 |
Profit/(Loss) After Tax
|
0.752 |
0.358 |
0.160 |
|
|
|
|
|
Export Value
|
NA |
10.014 |
7.075 |
|
|
|
|
|
Import Value
|
NA |
14.552 |
6.710 |
|
|
|
|
|
Total Expenditure
|
52.323 |
40.034 |
26.705 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
31.03.2003 |
PAT / Total Income
|
(%)
|
1.39 |
0.85 |
0.56 |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
1.39 |
2.45 |
2.52 |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
1.55 |
1.97 |
1.39 |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.11 |
0.09 |
0.06 |
|
|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
6.60 |
3.40 |
3.06 |
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
1.29 |
1.33 |
1.46 |
LOCAL AGENCY FURTHER INFORMATION
Export
Subject reportedly exports its products and supplies to
Hospitals and Medical Research Institutes in India
v AFC, New Delhi
v AIIMS
v AIIPMR, Mumbai
v Akshay Natraj, Mumbai
v Alliance Pharmaceuticals, Ludhiana
v Apollo neuro Hospital, Chennai
v Apollo Indiraprastha Hospital, New
Delhi
v Armed Forces Clinic
v Army Hospital, R&R, New Delhi
v Aruna Asaf Ali Govt Hospital, New
Delhi
v Base Hospital, Lucknow
v Batra Hospital & Medical
Research Centre
v Bhutani Medicose, New Delhi
v Bombay Hospital & Medical
Research Centre
v Bombay Hospital Trust
v Central Coalfields Ltd., Ranchi
v CGHS Medical Store Depot
v Civil Hospital, Ahmedabad
v General Hospital Chandigarh
v Institute of Physically Handicapped
v Indraprastha Medical Corporation
Limited
v Institute of Communication &
Cognitive Neruo Sci
v International Park Royal
v Jadhav Neurology Centre
v JIPMER, Pondicherry
v Kalawati Saran Children Hospital
v Tata Main Hospital Jamshedpur
v Toshi Orthopaedic Centre
v
VIMHANS,
New Delhi
Trade Reference
The subject is authorised distributor for the following
companies
v Biodex Medical System Inc., USA
v Colin Corporation, Japan
v Enaf Notius B.V., Netherlands
v H Medical, France
v Matintch Inc., USA
v Medical Educational Technologies
Inc.,
v Menaara Instrumentanium Corp.,
Finland
v Oxford Instruments Medical System
Ltd., UK
v Thermained Germany
AGM Held On – 30th September, 2004
The medical device market can be regarded
as a new motor of the Indian economy. The economic reforms in the decade have
considerably increased the standard of living of large parts of the population.
The consumer behavior of the approximately 250 million persons, who can be
classified as middle class, has changed. Quality medical care is moving more
and more into the foreground. Modern and advanced treatment procedures are
being demanded, the “lifestyle” illness is increasing. An increasing number of
doctors, who have received some training in the west, are opening up to new forms
of therapy.
According to official statistics, the
number of clinics and hospitals have increased almost four times than in the
1950‘s. Their number has risen from 9200 in the year 1951 to approximately
43,000 in the year 2000. The number of beds has increased in the same period
from approximately 117,000 to almost 900,000 and the number of doctors from
61,800 to about 500,000.
Market
India is still below the international
market level with regard to the production of medical technology. The volume of
the Indian market for medical technology is estimated at Euro 270 million. The
local market is estimated - according to source - at a quarter to a third and
the annual growth rate of local production at twelve to 13 percent. Forecasts
assume an increase of three to seven-fold by the year 2010. The local content
should significantly increase here, however, the overall demand on imports
should also undergo further large increases - according to cautious estimates
at least double. At present, the rate of imports is about 70 percent and the
amount of imports has doubled in the past five years.
The privatisation of the insurance sector
should act as a catalyst for a further increase of the market volume. Up to
now, only two million (which means only 0.2 percent) of the more than one
billion Indians have health insurance. The potential is estimated at 300
million. Also, the government plans to introduce standard qualities for
hospitals should increase the demand for medical facilities and prospect of
market.
The segments involving instruments,
medical devices and one-way products has, with 40 percent, the largest share in
the market for medical technology, according to a McKinsey analysis. Reagents
and test kits form the second-largest segment (20 percent), followed by
radiology equipment (15 percent) and equipment for chemical and physical
analysis (14 percent).
Also, the local production of indicating
high growth rates. According to estimates, 65 percent of the Indian
manufacturers in this sector can be classified as belonging to the SEM sector,
which means that their average annual sale volume is not above five million Rs.
Some products of the lower segment are manufactured in the country,
particularly electromechanical equipment and consumer articles. Indigenous
production also exists for the electronic medical equipment sector. However, a
high demand for imports in this sector is also to be reckoned with on a
long-term basis. The Indian healthcare providers are particularly interested in
products of the medium and lower segment. At 70 percent, the greatest demand is
from the public sector.
The private sector leads with the import
of high-end equipment. The conditions for exporting to India have significantly
improved since the economic opening up in the middle of the nineties. Import
licenses have been cancelled, majority-owned subsidiaries are possible, and
dividends can be paid out abroad. However, the import duties for medical
devices are very high. In individual cases, they can be up to 30 percent. A further
obstacle for export to India is the so-called BIS Registration (Bureau of
Indian Standards), a laborious and expensive quality inspection process carried
out by the Indian Standards Association. However, from the medical technology
sector, only X-ray equipment has up to now been subject to BIS-Registration.
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. 44.75 |
|
UK Pound |
1 |
Rs. 85.14 |
|
Euro |
1 |
Rs. 57.55 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT
LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
43 |
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 |