MIRA
INFORM REPORT
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Report Date : |
05.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
ELIN ELECTRONICS LIMITED |
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Registered Office : |
143 Cotton Street, Kolkata -700007, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
26.03.1982 |
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Com. Reg. No.: |
21-034725 |
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CIN No.: [Company
Identification No.] |
U29304WB1982PLC034725 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALE00746E |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturing of Audio Components like Audio Tape Deck Mechanism, DC
& AC Micro Motors, Radio /Cassette Player Recorders & Finished Audio Sets
for Philips. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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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 1250000 |
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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 record.
Trade relations are fair. General financial position is satisfactory. Payment
are usually correct and as per commitments. Nothing adverse reported. The company can be considered normal for having dealing at usual trade
terms and conditions. |
LOCATIONS
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Registered Office : |
143 Cotton Street, Kolkata West Bengal-700007, India |
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Website : |
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Branches: |
Elin House,4771, Bharatram Road, 23, Daryaganj New Delhi:110002(India) |
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Tel. No.: |
91-11-30122220 (8 lines) |
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Fax No.: |
91-11-23289340 |
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E-Mail : |
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Factory 1 : |
C-1436, Industrial Area, Site No:1, Bulandshahar Road.
Ghaziabad-201009 (U.P)India. |
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Tel. No.: |
91-120-2701519-24 |
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Fax No.: |
91-120-2702087 |
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E-Mail : |
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Area : |
Land:45200 Covered : 26600 |
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Factory 2 : |
L-84, Verna Industrial Estate, Verna, Salcatte, Goa-403722 |
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Tel. No.: |
91-832-2783730 / 731 |
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Fax No.: |
91-832-2783001 |
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E-Mail : |
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Factory: |
Village Bhelikhol, Tehsil, Nalagarh, dist: Solan(H.P) |
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Tel. No.: |
91-1795-236898 |
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Fax No.: |
91-1795-236988 |
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E-Mail : |
DIRECTORS
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Name : |
M L Sethia |
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Designation : |
Chairman &
Managing Director |
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Name : |
V S Sethia |
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Designation : |
Director |
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Name : |
B S Sethia |
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Designation : |
Directo |
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Name : |
V K Sethia |
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Designation : |
Directo |
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Name : |
S K Sethia |
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Designation : |
Directo |
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Name : |
Ravi Sethia |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Vivek Dwivedi |
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Designation : |
Company Secretary |
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MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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Percentage of
Holding |
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Sethia Family |
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65.00% |
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Others |
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35.00% |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Audio Components like Audio Tape Deck Mechanism, DC
& AC Micro Motors, Radio /Cassette Player Recorders & Finished Audio
Sets for Philips. |
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Products : |
Home Stereos CAR STEREO HEAD PHONE STEREO P A SYSTEM DUPLICATOR
AUDIO
AIR CONDITIONING / MICROWAVE
OVEN / AIR COOLER / WINDOW DISPLAY / TOY
SUBMERSIBLE PUMP
Fan Blower Motor
Mixer & Grinder Motor
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Exports : |
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Countries : |
Hongkong against |
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Terms : |
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Selling : |
60 days Credit terms. |
GENERAL
INFORMATION
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Customers : |
Philips India Ltd. Sony India Pvt. Ltd. BPL Matsushita Air Conditioning India Ltd. Hitachi Blue Star Carrier Aircon Ltd. LG Electronics India Ltd. Bajaj Auto Limited Daikin Shriram Air Conditioning Pvt. Ltd. Black & Decker Tata Ficosa Denso (Haryana) Pvt. Ltd. Voltas Super Cassette Ind. (T-Series) Trusound (Ahuja Radios) Videocon Thomson Consumer Electronics Matsushita India Feeders Lloyd Corporation Ltd |
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No. of Employees : |
About 750 |
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Bankers : |
Allahabad Bank Scindia House Branch, Janpath, New Delhi - 110 001 |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Chaturvedi & Company Chartered Accountants |
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Address : |
60, Bentinck Street, Kolkata - 700 069, West Bengal |
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Associates/Subsidiaries : |
Associate Sethia Oil Industries Sethia Oils Limited Elin Audio Equipments Private Limited Electronic Industry of India Subsidiaries Magtronic Devices Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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7500000 |
Equity Shares |
Rs.10/- each |
Rs.75.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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62877000 |
Equity Shares |
Rs.10/- each |
Rs.62.877
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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62.900 |
62.900 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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244.200 |
232.500 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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307.100 |
295.400 |
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LOAN FUNDS |
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1] Secured Loans |
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204.400 |
124.900 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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204.400 |
124.900 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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511.500 |
420.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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230.700 |
205.700 |
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Capital work-in-progress |
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06.300 |
16.000 |
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INVESTMENT |
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07.900 |
08.000 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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155.700 |
142.200 |
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Sundry Debtors |
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159.400 |
108.000 |
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Cash & Bank Balances |
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11.700 |
19.400 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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73.400 |
45.200 |
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Total
Current Assets |
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400.200 |
314.800 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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105.500 |
103.100 |
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Provisions |
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28.100 |
21.100 |
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Total
Current Liabilities |
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133.600 |
124.200 |
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Net Current Assets |
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266.600 |
190.600 |
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MISCELLANEOUS EXPENSES |
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TOTAL |
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511.500 |
420.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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863.600 |
831.000 |
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Other Income |
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7.300 |
1.800 |
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Stock Adjustment |
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5.300 |
0.600 |
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Total Income |
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875.900 |
833.400 |
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Profit/(Loss) Before Tax |
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17.800 |
15.000 |
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Provision for Taxation |
|
6.100 |
5.100 |
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Profit/(Loss) After Tax |
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11.700 |
09.900 |
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Expenditures : |
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Raw Materials |
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437.300 |
431.500 |
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Excise Duty |
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17.300 |
116.000 |
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Power & Fuel Cost |
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29.800 |
26.500 |
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Other Manufacturing Expenses |
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87.400 |
75.900 |
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Employee Cost |
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94.500 |
82.600 |
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Selling and Administration Expenses |
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33.500 |
29.500 |
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Miscellaneous Expenses |
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0.000 |
0.100 |
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Interest and financial Charges |
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17.600 |
18.200 |
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Total Expenditure |
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717.400 |
780.300 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
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0.55 |
0.50 |
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Long Term Debt-Equity Ratio |
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0.23 |
0.20 |
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Current Ratio |
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1.59 |
1.62 |
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TURNOVER RATIOS |
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Fixed Assets |
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1.62 |
1.70 |
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Inventory |
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5.80 |
5.49 |
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Debtors |
|
6.46 |
6.69 |
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Interest Cover Ratio |
|
2.01 |
1.82 |
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Operating Profit Margin(%) |
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8.85 |
8.58 |
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Profit Before Interest And Tax Margin(%) |
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4.10 |
4.00 |
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Cash Profit Margin(%) |
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6.10 |
5.78 |
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Adjusted Net Profit Margin(%) |
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1.35 |
1.19 |
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Return On Capital Employed(%) |
|
7.60 |
7.62 |
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Return On Net Worth(%) |
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3.88 |
3.41 |
LOCAL AGENCY
FURTHER INFORMATION
ELIN ELECTRONICS LIMITED
ANNUAL REPORT 2005-2006
DIRECTOR'S REPORT
To The members,
Yours Directors have pleasure in presenting the 24th Annual Report along
with audited statement of accounts of the Company for the Year ended 31st March
2006.
FINANCIAL RESULTS
(Rupees in lacs) 31st March 2006 31st
March 2005
Profit before Finance Expenses, Depreciation and Taxes 763.20 713.35Less:
Finance Expenses 175.74 182.20Less: Depreciation 409.72 380.73 Profit before
Taxes 177.74 150.42Less: Provision for Current Tax 60.30 51.50Provision for
Fringe Benefit Tax 10.00 -Add./(Less) Provision for Deferred Tax - 0.57Profit
after Taxes 117.01 99.49 Add: Income Tax for earlier years 0.23 0.03Add: Profit
brought forward from Pr. Year 778.05 678.53Balance Carried Forward 895.29
778.05
OPERATIONS During the year under review, the turnover inclusive of excise
duty was Rs.863.570 Millions as against Rs. 830.962 Millions in the previous
year. The net profit after tax increases to Rs.11.701 Millions as against
Rs.9.949 Millions in the previous year.
DIVERSIFICATION
During the year, the plastic moulding unit at Baddi (HP) commenced
commercial production in April 2005.
DIVIDEND
In view of the need to conserve resources for diversification &
expansion, your directors do not recommend any dividend for the year.
QUALITY CERTIFICATION
The company continued to have ISO 9001:2000 certification for 'quality
management system Standard' and ISO 14001:1996 certification for Environment
Management system standard' During the year TS: 16949; 2002 quality
certification for automotive parts was obtained.
FIXED DEPOSITS
During the year under review, the Company has not accepted any deposits
from the public.
DIRECTORS
Mr. Budh Singh Sethia and Mr. Ravi Sethia, directors of the company
retire by rotation from the Board and being eligible offer themselves for
re-appointment.
PERSONNEL
The relations between the employees and the management continues to be
cordial. The particulars of Employees as required u/s. 217(2A) of the Companies
Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 is
NIL.
DIRECTOR RESPONSIBILITY STATEMENT
The directors hereby confirm:
i) That in preparation of the annual accounts, the applicable accounting
standards have been followed alongwith the proper explanations relating to
material departures.
ii) That the Directors have selected such accounting policies and applied
them consistently and made judgments and estimates that are reasonable and
prudent so as to give a true and fair view of the state of affairs of the
company at the end of financial year and of the profit of the company for the
year under review.
iii) That the Directors have taken proper and sufficient care for the
maintenance of adequate accounting in accordance with the provisions of the
Companies Act, 1956 for safeguards the assets of the Company and for preventing
and detecting fraud and other irregularities.
iv) That the Directors have prepared the annual accounts on a going
concern basis.
AUDIT COMMITTEE
During the year, the Audit Committee comprised of Mr. V.S. Sethia as
Chairman, Mr. S.K. Sethia and Mr. M.L. Sethia as its members.
AUDITORS & AUDITORS' REPORT
M/s. Chaturvedi & Company, Chartered Accountants, Auditors of the
Company retire at the ensuing Annual General Meeting and being eligible offer
themselves for re-appointment.
In regard to situation of fixed assets, the records are under compilation
and shall be completed soon.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS
& OUTGO
The information required to be disclosed in terms of section 217(1)(e) of
the Companies Act, 1956 read with the Companies (Disclosure of particulars in
the Report of Board of Directors) Rules 1988 are given in Annexure which form
part of this Report.
ACKNOWLEDGEMENT
Your Directors wish to thank all Government Authorities and Company's
Bankers State Bank of India for their continued help
and support to the Company.
Your Directors also wish to place on record their deep appreciation for
the services rendered by staff and workers of the company at all levels and for
dedication to their work and loyalty.
For and on behalf of the Board
Place: New Delhi (M.L. SETHIA)Date : 03-09-2006 CHAIRMAN & MG.
DIRECTOR
ANNEXURE TO THE DIRECTORS REPORT
(Pursuant to the companies (disclosure of particulars in the report of
board of directors rules, 1988)
1. CONSERVATION OF ENERGY:
Efforts are being made to use natural light and air flow as far as possible and to conserve the energy in all possible manner.
2. TECHNOLOGY ABSORPTION:
Efforts made in technology absorption are given below as per Form-B.
A) RESEARCH & DEVELOPMENT (R&D)
a) Specific areas in which R & D carried out by the Company:
Research & Development activities are being carried out continuously
for new products, products improvements and improved production process for
better productivity.
b) Benefit derived as a result of the above R&D: The input cost has
been reduced and in some cases the quality has unproved.
c) Future Plan of action:
The company continue to strengthen its R & D Department by deploying cost saving devices in production, by increasing the raw material efficiency and by continuing the present work in R & D for improvement in quality of products and other areas in. which the company is operating. The recognition of in-house R & D unit by the Govt. of India, Ministry of Science and Technology has been extended till 31st March 2009.
d) Expenditure on R & D:
(Rs. in lacs) 2005-06 2004-05
i. Capital 52.30 8.01ii. Revenue 99.24 97.85iii. Total 151.54 105.86iv.
Total R & D Expenditure as % of total Turnover 2.03% 1.27%
B) TECHNOLOGY ABSORPTION, ADOPTION AND INNOVATION: a) Efforts in brief,
made towards technology absorption, adoption and innovation: All efforts are
being made to adopt the latest technology.
b) Benefits derived as a result of above efforts:
As a result of adoption of latest technology, there has been improvement in product quality, reduction in cost and development of new products. c) Technology imported during the last five years: Nil
3. FOREIGN EXCHANGE EARNING & OUTGO: (Rs. In Lacs) 2005-06
2004-2005
Earnings 79.18 32.46Outgo 1528.59 1726.52
For and on behalf of the Board
Place: New Delhi (M.L. SETHIA)Date : 03-09-2006 CHAIRMAN & MG.
DIRECTOR
MILESTONES
2005
• Entered into IT enabled services with a 24 seater call center.
• Obtained TS: 16949:2002 Certification to Elin Ghaziabad.
2004
• Established new company "ELIN APPLIANCES PVT. LTD." and started manufacturing electronic Irons & Toasters (Home Appliances)
for PHILIPS at Baddi, Himachal Pradesh.
2003
• Started manufacturing speaker for Philips Sound System (PSS).
• Started manufacturing of VCD for Philips.
2002
• ISO-14001 Certification to Elin Ghaziabad.
• Started manufacturing Free Power Generator for Philips.
• Started manufacturing Zipper Slider for Apparels.
2001
• Started manufacturing Eco Motors, Stepper Motors, CD Loader Motors and CD Drivers.
• Started assembly of Logic control, Walkman Deck and
CD Mechanism Assembly for SONY.
• Started manufacturing of Terminal Blocks for LG.
• ISO 9001:2000 Quality Certification
2000
• Started manufacturing Blender Bar and Universal Motors.
1999
• Started Manufacturing Luminaries for Philps. (AMDAL).
• Started Manufacturing Synchronous Motors for Air conditioners.
1998
• ISO 9002 Quality Certification for Goa Unit.
1997
• Started Contract Manufacturing of Radios & Radio Cassette Recorders for philips at Goa.
• Started manufacturing Electric Irons & Toasters (Home Appliances) for Philips at Goa in a
company namely
ASIAN MAGNETIC DEVICES PVT. LTD.(AMDPL)
1996
• ISO 9001 Quality Certificate to ELlN.
• A new unit of Elin established at Parwanoo (H.P.), especially for contract manufacturing for PHILIPS INDIA LTD.
1990
• Elin Audio Compoennts Pvt. Ltd. Merged to form a limited company: "Elin Electronics Limited".
1989
• Audio Head Manufacturing started in technical collaboration with Sankyo Seiki (Singapore).
1982
• D.C. Micro Motro manufacturing, started for further indigenization of Tape Deck Mechanism.
1975
• Became first Indian Company to indigenously manufacture Tape Deck Mechanisms.
1969
• Established as "Electronic Industries Of India", manufacturing Switches, Relays, Sockets, Jacks & Cords
Ghaziabad:
Tape Deck Mechanisms 3.5 million nos.
DC Micro Motors 10 million nos.
Synchronous Motors 0.5 million nos.
Universal Motors / Eco Motor 0.3 million nos.
Stepper Motor 0.1 million nos.
F.P. Generator 0.2 million nos.
Terminal Block 0.2 million nos.
Electrical Light Fittings 0.6 million nos.
C.D. Mechanism 0.6 million nos.
Speakers 1.8 million nos.
Earphone 1.2 million nos.
Fan Blower Motor 0.3 million nos.
Core Sheet (Denso) 40.0 million nos
Goa
Radios 0.60 million nos.
Free Power Generator 0.50 million nos.
Walkman 0.06 million nos.
EAPL, Baddi
Home Appliances:
Irons 0.6 million nos.
Electric Toaster 0.6 million nos.
Bar Blender 0.1 million nos.
Mixer Grinder 0.1 million nos.
Juicer Mixer Grinder 0.1 million nos.
Juicer Mixer Grinder 0.1 million nos.
Electric Irons 1.00 million nos.
AWARDS
2003
Quality Excellence Award from
Institute of Trade & Industrial Development.
2002
ELCINA award for Quality
2002
ELCINA award of Excellence for
ENVIRONMENT MANAGEMENT.
2000
ELCINA award for RESEARCH &
DEVELOPMENT WORK in the field of electronic components.
1999
ELCINA Award for INDIGENISATION OF
CAPITAL GOODS FOR MANUFACTURE OF ELECTRONIC PRODUCTS
1997
National award for EXCELLANCE IN
ELECTRONIC COMPONENTS from Dept of Electronics (Govt. of INDIA)
1997
ELCINA award for EXCELLANCE IN
QUALITY
1997
ELCINA award for EXPORT GROWTH
1997
ESC award for EXCELLANCE IN EXPORT
1996
ELCINA award for INDIGENOUS
DEVELOPMENT OF CAPITAL GOODS
1994
EXCELLENCE IN ELECTRONICS Award
from Govt. of India
1994
Letter of Appreciation for
Services From Philips
1994
IMPORT SUBSTITUTION Award from All
India Radio and Electronic Association.
1993
TWO STAR INDUSTRIES Award from
Directorate of Industries.
1991
R & D recognised by Department
of Science & Technology, Government of India
1991
PHILIPS (C.E.) THE BEST COMAKER
Award
1982
ELCINA Award for EXCELLENCE IN
EXPORTS
Established company with a strong
brand image of “Elin Inside “ and experienced of almost 4 decades in Audio
Components manufacturing
Largest manufacturer of Cassette Tape
Deck Mechanisms, CD Drives, Small AC/DC Motors.
Regular, long term suppliers to
most Audio MNC’s and OEM’s in India.
Ready expertise in permalloy,
Ferrite processing and miniature assemblies.
Most modern in house facility for
die/mould making,pressing, moulding,component,assembly,etc.
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.43.15 |
|
UK Pound |
1 |
Rs.85.22 |
|
Euro |
1 |
Rs.57.63 |
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 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
|