MIRA
INFORM REPORT
|
Report Date : |
28.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
VISHAL
RETAIL LIMITED |
|
|
|
|
Registered Office : |
RZ /
A95-A96, Road No. 4, Gali No. 9, Mahipalpur Extension, New Delhi – 110037 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
23.07.2001 |
|
|
|
|
Com. Reg. No.: |
55-147724 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U74999DL2001PLC147724 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
CALV01278E |
|
|
|
|
Legal Form : |
Closely
Held Public Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturers
and Retailers of Garments, Home Furnishing, Foodmart and Household Products. |
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
3000000 |
|
|
|
|
Status : |
Satisfactory
|
|
|
|
|
Payment Behaviour : |
Usually
correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject
is a well established company having satisfactory track. Trade relations are fair. Financial position is satisfactory. Payments are usually correct and as per
commitments. The
company has ambitious plans for substantial expansion and expects to visit
capital market in March, 2007. The
company can be considered good for normal business dealings at usual trade
terms and conditions. |
LOCATIONS
|
Registered/ Corporate Office : |
RZ /
A95-A96, Road No. 4, Gali No. 9, Mahipalpur Extension, New Delhi – 110037 |
|
Tel. No.: |
91-11-30622002
– 08 [8 Lines] |
|
Fax No.: |
91-11-26789001/30622008 |
|
E-Mail : |
arun.gupta@vrpl.in |
|
|
|
|
Central
Warehouse : |
A - 435/415, Road
No. 4, Mahipalpur, New Delhi -110037, India |
|
|
|
|
Factory : |
Plot No. A – 244,
Phase – 1, Udyog Vihar, Gurgaon, Haryana |
|
Tel.
No.: |
91-124-3945736 |
|
E-Mail
: |
DIRECTORS
|
Name : |
Mr.
Ram Chandra Agarwal |
|
Designation : |
Chairman
and Managing Director |
|
|
|
|
Name : |
Mr.
Surendra Kumar Agarwal |
|
Designation : |
Director
|
BUSINESS DETAILS
|
Line of Business : |
Manufacturers
and Retailers of Garments, Home Furnishing, Foodmart and Household Products. |
GENERAL
INFORMATION
|
No. of Employees : |
450 |
|
|
|
|
Bankers : |
ICICI
Bank Limited ICICI
Bank Tower, NBC Place, Bhishma Pitamah Marg, Pragati Vihar, New Delhi –
110003, India Tel.
No. : 91-11-24390000 Fax
No. : 91-11-24390070 Website
: http://www.icicibank.com ICICI
Bank Limited “Landmark”,
Race Course Circle, Alkapuri, Vadodara – 390007, India ICICI
Bank Limited ICICI
Bank Towers, Bandra – Kurla Complex, Mumbai – 400051, Maharashtra, India Tel.
No. : 91-22-26531414 Fax
No. : 91-22-26531122 Kotak
Mahindra Bank Limited 36-38A,
Nariman Bhavan, 227, D, Nariman Point, Mumbai – 400021, Maharashtra, India State
Bank of India A – 5,
South Extension Part – 1, New Delhi – 110049, India YES Bank Limited 9th
Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai
– 400018, Maharashtra, India E-mail :
nikhil.sahni@yesbank.in CIN : U65190MH2003PTC143249 |
|
|
|
|
|
|
|
Banking Relations : |
Satisfactory
|
|
|
|
|
Auditors : |
Krishna
Kumar Chhaparia Chartered
Accountants, B – 1,
Flat No. 1152, Vasant Kunj, New Delhi – 110070, India PAN
No. : ACPPC2968J |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
30840000 |
Equity
Shares |
Rs. 10/- each |
Rs. 308.400 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
22099779 |
Equity
Shares |
Rs. 10/- each |
Rs. 220.997 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
220.997 |
148.200 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
506.007 |
154.934 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
727.004 |
303.134 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
463.593 |
191.490 |
|
|
2] Unsecured Loans |
|
74.375 |
31.025 |
|
|
TOTAL BORROWING |
|
537.968 |
222.515 |
|
|
DEFERRED TAX LIABILITIES |
|
12.662 |
11.215 |
|
|
|
|
|
|
|
|
TOTAL |
|
1277.634 |
536.864 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
353.982 |
185.845 |
|
|
Capital work-in-progress |
|
46.404 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
781.984 |
374.037 |
|
|
Sundry Debtors |
|
5.170 |
0.379 |
|
|
Cash & Bank Balances |
|
39.872 |
22.017 |
|
|
Other Current Assets |
|
0.000 |
0.000 |
|
|
Loans & Advances |
|
321.679 |
60.784 |
|
Total Current Assets |
|
1148.705 |
457.217 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
195.127 |
90.931 |
|
|
Provisions |
|
77.416 |
15.718 |
|
Total Current Liabilities |
|
272.543 |
106.649 |
|
|
Net Current Assets |
|
876.162 |
350.568 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
1.086 |
0.451 |
|
|
|
|
|
|
|
|
TOTAL |
|
1277.634 |
536.864 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
Sales Turnover [including other income] |
|
2890.882 |
1464.545 |
|
|
|
|
|
|
Net
Profit |
|
186.175 |
49.713 |
|
|
|
|
|
|
Total
Expenditure |
|
2704.707 |
1414.832 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
6.44 |
3.39 |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
|
6.44 |
3.39 |
|
|
|
|
|
|
|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
12.38 |
7.73 |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
|
0.25 |
0.16 |
|
|
|
|
|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
|
1.11 |
1.08 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
|
4.21 |
4.28 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8 Particular for creation or modification of charges
|
Corporation
identity number or foreign company registrations number of the company |
U74999DL2001PLC147724 |
|
Name of the
company |
VISHAL RETAIL LIMITED |
|
Address |
RZ A 95 96 Road No. 4, Street No. 9,
Mahipalpur Extension, New Delhi – 110037, India |
|
This Form is for
|
Creation of
charge |
|
Type of Charges |
Hypothecation |
|
Particular of
the charge holder |
Kotak Mahindra
Bank Limited 36-38A,
Nariman Bhavan, 227, D, Nariman Point, Mumbai – 400021, Maharashtra, India E-mail : rakesh.jindal@kotak.com CIN :
L99999MH1985PLC038137 |
|
Nature or
description of the instrument creating charge |
Deed of
Hypothecation |
|
Date of the
instrument creating charge |
24.06.2006 |
|
Amount Secure by
the charge |
Rs. 1.512
millions |
|
Brief of the
principal terms and conditions and extent and operation of the charge |
Loan Amounting
to Rs. 1.512 millions to be repaid in 36 instalments of Rs. 0.048 million
calculated @ 5.07% p.a. |
|
Description of
the property charge whether it is a charge on |
Plant and
machinery |
|
Particulars of
the Property charged |
First and
exclusive charge of “Kotak Mahindra Bank Limited” on 2 No’s of Eicher 10.75 |
|
Corporation
identity number or foreign company registrations number of the company |
U74999DL2001PLC147724 |
|
Name of the
company |
VISHAL RETAIL LIMITED |
|
Address |
RZ A 95 96 Road No. 4, Street No. 9,
Mahipalpur Extension, New Delhi – 110037, India |
|
This Form is for
|
Creation of
charge |
|
Type of Charges |
Hypothecation |
|
Particular of
the charge holder |
Kotak Mahindra
Bank Limited 36-38A,
Nariman Bhavan, 227, D, Nariman Point, Mumbai – 400021, Maharashtra, India E-mail : rakesh.jindal@kotak.com CIN :
L99999MH1985PLC038137 |
|
Nature or
description of the instrument creating charge |
Deed of
Hypothecation |
|
Date of the
instrument creating charge |
31.03.2006 |
|
Amount Secure by
the charge |
Rs. 6.028
millions |
|
Brief of the
principal terms and conditions and extent and operation of the charge |
Loan Amounting
to Rs. 6.028 millions to be repaid in 36 instalments of Rs. 0.189 million calculated
@ 4.65% p.a. |
|
Description of
the property charge whether it is a charge on |
Vehicles |
|
Particulars of
the Property charged |
ENGINE NUMBERS
:- E483CD6C139280,
E483CD6C138895, E483CD5MC132989,
E483CD5M133395, E483CD6C139470,
E483CD6B137709 CHASIS NUMBERS
:- 19FC6C135004,
19FC6C135005, 19FC5M130381, 19FC5M130634, 19FC6C135134, 19FC6B133943 |
|
Corporation
identity number or foreign company registrations number of the company |
U74999DL2001PLC147724 |
|
Name of the
company |
VISHAL RETAIL LIMITED |
|
Address |
RZ A 95 96 Road No. 4, Street No. 9,
Mahipalpur Extension, New Delhi – 110037, India |
|
This Form is for
|
Creation of
charge |
|
Type of Charges |
Hypothecation |
|
Particular of
the charge holder |
YES Bank Limited 9th
Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai
– 400018, Maharashtra, India E-mail :
nikhil.sahni@yesbank.in CIN :
U65190MH2003PTC143249 |
|
Nature or
description of the instrument creating charge |
Deed of
Hypothecation |
|
Date of the
instrument creating charge |
12.06.2006 |
|
Amount Secure by
the charge |
Rs. 150.000
millions |
|
Brief of the
principal terms and conditions and extent and operation of the charge |
The effective
rate of Interest is 9.5% p.a. 0.5% of the facility amount payable upfront on
acceptance of the facility letter excess Interest, Overdue Interest &
Default Interest @2% as applicable will be levied |
|
Description of
the property charge whether it is a charge on |
Stock in trade
and book debts |
|
Particulars of
the Property charged |
Stock of raw
material, semi finished & finished goods, stores & spares, bills
receivables, book debts and all other receivables & movables both present
and future sotred or be in or about of the borrowers factories, premises
& godowns situated anywhere |
|
Corporation
identity number or foreign company registrations number of the company |
U74999DL2001PLC147724 |
|
Name of the
company |
VISHAL RETAIL LIMITED |
|
Address |
RZ A 95 96 Road No. 4, Street No. 9,
Mahipalpur Extension, New Delhi – 110037, India |
|
This Form is for
|
Creation of
charge |
|
Type of Charges |
Hypothecation |
|
Particular of
the charge holder |
State Bank of
India [Consortium] A – 5, South
Extension Part – 1, New Delhi – 110049, India E-mail : sanju_professional@yahoo.co.in |
|
Nature or
description of the instrument creating charge |
Working Capital
Consortium (CF – 1), Joint Deed of Hypothecation (CF – 2) & Interse
Agreement (CF – 3) |
|
Date of the
instrument creating charge |
19.07.2006 |
|
Amount Secure by
the charge |
Rs. 1095.000 millions |
|
Brief of the
principal terms and conditions and extent and operation of the charge |
Whole of the
current assets, movable assets & other current assets of the company both
present & future. The above is
secured by way of first charge & IInd charge on fixed assets on
pari-passu basis alongwith HSBC Limited, SBI is acting as a lead bank of
consortium. ROI SBI 1% below the SBAR & on SLC 1% above SBAR & ROI of
HSBC Limied @ 9.25% p.a. on daily balance payable on monthly basis or such
other rates (S) specified by the bank from time to time margin on stocks @
25% |
|
Description of
the property charge whether it is a charge on |
Plant and
machinery, furniture and fixtures, Stock in trade and book debts |
|
Particulars of
the Property charged |
Whole of the current
assets, movable assets & other current assets of the company both present
& future lying anywhere including goods in transit |
|
Corporation
identity number or foreign company registrations number of the company |
U74999DL2001PLC147724 |
|
Name of the company
|
VISHAL RETAIL LIMITED |
|
Address |
RZ A 95 96 Road No. 4, Street No. 9,
Mahipalpur Extension, New Delhi – 110037, India |
|
This Form is for
|
Creation of
charge |
|
Type of Charges |
Hypothecation |
|
Particular of
the charge holder |
YES Bank Limited 9th
Floor, Nehru Centre, Discovery of India, Dr. Annie Besant Road, Worli, Mumbai
– 400018, Maharashtra, India E-mail :
nikhil.sahni@yesbank.in CIN :
U65190MH2003PTC143249 |
|
Nature or
description of the instrument creating charge |
Deed of
Hypothecation |
|
Date of the instrument
creating charge |
12.06.2006 |
|
Amount Secure by
the charge |
Rs. 150.000
millions |
|
Brief of the
principal terms and conditions and extent and operation of the charge |
The effective
rate of Interest is 9.5% p.a. 0.5% of the facility amount payable upfront on
acceptance of the facility letter excess Interest, Overdue Interest &
Default Interest @2% as applicable will be levied |
|
Description of
the property charge whether it is a charge on |
Stock in trade |
|
Particulars of
the Property charged |
Stock of raw
material, semi finished & finished goods, stores & spares, bills
receivables, book debts and all other receivables & movables both present
and future sotred or be in or about of the borrowers factories, premises
& godowns situated anywhere |
|
Corporation
identity number or foreign company registrations number of the company |
U74999DL2001PLC147724 |
|
Name of the
company |
VISHAL RETAIL LIMITED |
|
Address |
RZ A 95 96 Road No. 4, Street No. 9,
Mahipalpur Extension, New Delhi – 110037, India |
|
This Form is for
|
Creation of
charge |
|
Type of Charges |
Equitable
mortgage or mortgage of property by depositing the title deeds |
|
Particular of
the charge holder |
State Bank of
India & SBI [Consortium] A – 5, South
Extension Part – 1, New Delhi – 110049, India E-mail : sanju_professional@yahoo.co.in |
|
Nature or
description of the instrument creating charge |
Annex – A for
creation of E M on immovable properties of the company situated at Krishnapur
Vilage Airport Road [Gokul Road] TQ : Hubli, District Dharwad measuring 26
acres, 22 guntas, 02 Annas comprised in R. S. No. 98/4, 98/5, 106/2/2A,
106/2B + 1A 1M, 106A/1A2, 107, 108, 109B/2, alongwith all construction
thereon or to be constructed thereon in future the above is to secured nos.
two corporate loan sanctioned by SBI & working capital facilities
sanctioned by the SBI consortium SBI is acting aslead. |
|
Date of the
instrument creating charge |
19.06.2006 |
|
Amount Secure by
the charge |
Rs. 1178.400
millions |
|
Brief of the principal
terms and conditions and extent and operation of the charge |
Em created by
way of depositing of title deeds with the bank of companies immovable
properties situated at Hubli District Dharwad for securing the two corporate
loan given by the SBI of Rs. 83.400 millions & working capital facilities
sanctioned by the SBI consortium of Rs. 1095.000 millions [SBI Rs. 795
milions + HSBC Limited Rs. 300 millions] SBI is acting as lead bank of
consortium. SBI having first charge gor 2 CTL & SBI consortium having
first pari-passu charge on above I.P. for working capital |
|
Description of
the property charge whether it is a charge on |
Immovable
properties |
|
Particulars of
the Property charged |
At Krishnapur
Village Airport Road [Gokul Road] TQ : Hubli, District Dharwad |
Vishal Retail plans expansion, targets Rs 3000
millions turnover
Deepak Goel
New Delhi, December, 5
NEW DELHI- based Vishal Retail Prviate Limited plans to expand its
Vishal Megamart chain of retail outlets. It will open 20-25 stores in class-B
cities of Rajasthan, Uttar Pradesh, Himachal Pradesh, Gujarat and Punjab.
The expansion will be completed by March 2007 at an investment of Rs
1000-1500 millions, said Mr Ram Chandra Agarwal, Promoter, Vishal Retail.
Explaining the rationale of moving into class-B cities, Mr Agarwal said,
"There is a gap in retail space and they want to bridge that."
While some stores will be standalone, others will be opened in malls, he
said.
The expansion will be funded mostly through an initial public offering,
which the company plans by March next year.
"They are conducting the due diligence and will file the red
herring prospectus with the Securities and Exchange Board of India soon,"
said Mr Agarwal. "They would initially generate Rs 1000 millions from the
equity market," he added.
Vishal Retail will thus add 6.7 millions sq. ft of retail space
(25000-30000 sq. ft. per store).
The company already has 0.400 million sq. ft. space (about 600 cricket
pitches laid next to each other).
The capacity of the company's garment manufacturing facility at Gurgaon
(Delhi-NCR) will also be expanded to 0.250 million pieces a month from 0.100
million pieces.
All garments sold by the stores are sourced from this facility.
Apart from readymade garments, Vishal retails watches, sunglasses,
electrical appliances, perfumes and cosmetics.
The company has a turnover target of Rs 3000 millions for the current
fiscal against the Rs 1470 millions it clocked last year.
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.44.64 |
|
UK
Pound |
1 |
Rs.86.51 |
|
Euro |
1 |
Rs.58.62 |
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 |
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 |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|