MIRA
INFORM REPORT
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Report Date : |
17.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
RAWALWASIA ISPAT UDYOG PRIVATE LIMITED. |
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Registered Office : |
11th Km Stone ,
Delhi Road , Hisar 125044, Haryana |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
22.04.1985 |
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Com. Reg. No.: |
05-020743 |
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CIN No.: [Company
Identification No.] |
U27109HR1985PTC020743 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
RTKR02367B |
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PAN No.: [Permanent
Account No.] |
AAACR7624N |
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Legal Form : |
Private Limited Liability Company. |
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Line of Business : |
Manufactures and Exporters of Mild Steel Galvanised Pipes & Tubes. |
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 90000 |
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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 and reputed company having satisfactory track records. Directors are reported as experienced and respectable businessmen. Their trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments. The company can be considered normal for business dealings
at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
11th Km Stone , Delhi Road , Hisar 125044 , Haryana , India
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Tel. No.: |
91-11-1662-220089 |
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Fax No.: |
91-1662-22088 |
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E-Mail : |
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Website : |
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Area : |
200,000 Sq. ft. approx |
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Location : |
Owned |
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Branches : |
1/5B, Second Floor , Asaf Ali Road , New Delhi 110002 , India |
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Tel. No.: |
91-11-23239236 / 23230635 |
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Mobile No.: |
91-9312220673 / 9810976346/9811115558 |
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Fax No.: |
91-11-23239087 |
DIRECTORS
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Name : |
Mr. Ramesh Kumar Agarwal. |
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Designation : |
Director |
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Address : |
Ramesh Bhavan , Madil Road , Hisar 125001, Haryana |
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Date of Birth/Age : |
01/11/1952 |
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Date of Appointment : |
22/04/1985 |
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Name : |
Mr. Pawan Kumar Agarwal |
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Designation : |
Director |
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Address : |
Prem Bhavan, Mandil Road, Hisar 125001, Haryana. |
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Date of Birth/Age : |
17/04/197 |
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Date of Appointment : |
22/04/1957 |
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Name : |
Mr. Prem Kumar Agrwal |
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Designation : |
Director |
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Address : |
Prem Bhavan , Mandi Road , Hisar 125001 ,Haryana1 |
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Date of Birth/Age : |
01/05/1955 |
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Date of Appointment : |
22.04/1985 |
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Name : |
Ms. Kusum Agarwal |
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Designation : |
Director |
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Address : |
Ramesh Bhavan , Mandi Road , Hisar 125001 , Haryana |
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Date of Birth/Age : |
16/07/1955 |
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Date of Appointment : |
22.04.1985 |
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Name : |
Ms. Pushpa Agarwal |
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Designation : |
Director |
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Address : |
Prem Bhavan , Mandi Road , Hisar 125001. Haryana |
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Date of Birth/Age : |
21.09.1960 |
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Date of Appointment : |
22.04/1985 |
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Name : |
Mr. Dheeraj Agarwal |
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Designation : |
Additional Director |
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Address : |
Ramesh Bhavan , Mandi Road , Hisar 125001 , Haryana |
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Date of Birth/Age : |
60/10/1978 |
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Date of Appointment : |
01/08/2006 |
KEY EXECUTIVES
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Name : |
Rajesh Garg & Company (Mr. Rajesh Garg , Proprietor , C.P. No, 4093) |
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Designation : |
Company Secretary |
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Address : |
1226 , UE-II , Hisar (Haryana) |
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Tel No.: |
91-1662-248539 |
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Mobile No.: |
91-9812010694 |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Mandyati Dealcom Private Limited |
3,100 |
8.88% |
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Mohindra Finvest Private Limited |
3,100 |
8.88% |
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Murabrown Trading Private Limited |
3,100 |
8.88% |
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Chaplet Tracon Private Limited |
3,200 |
9.17% |
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Mr. Prem Kumar Agarwal |
1,910 |
5.47% |
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Ms Pushpa Agrwal |
270 |
0.77% |
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Ms Uma Devi Agarwal |
330 |
0.95% |
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Ms Kusum Agrwal |
500 |
1.43% |
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Mr. Pawan Kumar Agrawal |
100 |
0.29% |
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Mr. Ramesh Kumar Agarwal |
4,850 |
13.90% |
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Mr. Dwarka Prasad Agrwal |
1,000 |
2.87% |
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Mr. Dinesh Kumar Agrawa |
1,500 |
4.30% |
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Mr. Ashok Kumar Agrawal |
500 |
1.43% |
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Twinkle Leasing & Finance (Delhi) Limited |
3,150 |
9.03% |
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Ms Pista Devi Agrwal |
190 |
0.54% |
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Mr. Vishwanath Agrawal |
1,900 |
5.44% |
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R K Agrawal & Others HUF |
3,300 |
9.46% |
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Mr. Neeraj Agrawal |
50 |
0.14% |
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Mr. Prateek Kumar Agrawal |
250 |
0.72% |
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Ashok Agrawal & Others , HUF |
1,000 |
2.87 |
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Ms. Swati Agrwal |
250 |
0.72 |
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Ms Nikita Agrawal |
500 |
1.43 |
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Bengal Enterprises Private Limited |
850 |
2.44 |
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Total |
34,900 |
100.00% |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Exporters of Mild Steel Galvanised Pipes &
Tubes. |
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Products : |
The subject is manufacturing following products Ø Mild Steel Galvanished Pipes Ø Mild Steel Black Pipes Ø M.S. (ERW) Black And Galvanished Pipes/Tubes Ø Light Tubes Ø Medium And Heavy Tubes Ø ERW
Mild Steel Galvanished and Black Pipes, Galvanished Pipes, Steel Pipes Fittings,
Galvanished Steel Pipes Fittings, etc. Ø Pipes
Ø Tubes Ø Mild
Steel Pipe Ø Black
Pipes Ø Glavanized
Steel Tubes Ø Steel
Tube Ø GI
pipe |
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Exports : |
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Products : |
Mild Galavanised Pipes & mild Steel Black Pipes |
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Countries : |
Russia ,Middle East , Europe , Malaysia , New Zealand , Australia ,
Thailand , USA and also supplies in the domestic market. |
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Imports : |
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Products : |
Raw Materials |
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Countries : |
Europe |
PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Steel Pipe/Tubes |
MT |
25000 |
14995.970 |
GENERAL
INFORMATION
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No. of Employees : |
Around 200 |
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Bankers : |
Ø Punjab National
Bank, Sirsa Road, Hisar 125001, Haryana. Ø HDFC Bank |
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Facilities : |
The Subject is enjoying the llowing facilities from Punjab National
Bank as per Hypothecation Agreement dated May 2, 2006
It is secured against hypothecation of immovable properties of Land
& building at Factory Premises 11 KM Stone, Delhi Road, Hirsar and
hypothecation of raw material using of manufacturing of steel pipes and tubes
, Stock in process, finished goods, stores & spares , trust receipts and
book debts. |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Ashok Kumar Goyal and Company Chartered Accountants |
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Address : |
SCF- 104 , Green Square Market , Hisar 125001 , Haryana |
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Memberships : |
Engineering Export Promotion Council |
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Associates/Subsidiaries : |
Synergy Waste Management Private Limited. |
CAPITAL STRUCTURE
Authorised Capital:
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No. of Shares |
Type |
Value |
Amount |
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40,000 |
Equity Shares |
Rs.100/- each |
Rs.4.000 million |
Issued, Subscribed & Paid-up Capital:
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No. of Shares |
Type |
Value |
Amount |
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34,900 |
Equity Shares |
Rs.100/-
each |
Rs.3.490
million |
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as on 31.03.2006 |
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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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3.490 |
2.240 |
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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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34.427 |
23.244 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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37.917 |
25.484 |
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LOAN FUNDS |
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1] Secured Loans |
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35.581 |
56.690 |
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2] Unsecured Loans |
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10.000 |
18.400 |
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TOTAL BORROWING |
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45.581 |
75.090 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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83.498 |
100.574 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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18.890 |
11.445 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.352 |
0.168 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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35.186 |
36.056 |
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Sundry Debtors |
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15.962 |
37.913 |
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Cash & Bank Balances |
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6.662 |
5.359 |
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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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13.828 |
20.136 |
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Total
Current Assets |
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71.638 |
99.464 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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6.575 |
8.803 |
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Provisions |
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0.807 |
1.700 |
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Total
Current Liabilities |
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7.382 |
10.503 |
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Net Current Assets |
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64.256 |
88.961 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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83.498 |
100.574 |
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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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286.313 |
458.416 |
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Other Income |
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0.188 |
0.635 |
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Total Income |
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286.501 |
459.051 |
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Profit/(Loss) Before Tax |
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3.316 |
4.229 |
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Provision for Taxation |
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0.780 |
1.700 |
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Profit/(Loss) After Tax |
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2.536 |
2.529 |
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Expenditures : |
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Purchases / Raw Materials |
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267.161 |
436.887 |
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Personnel Exp |
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4.777 |
5.277 |
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Administrative Exp |
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4.600 |
5.323 |
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Miscellaneous Expenses |
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1.139 |
1.118 |
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Total Expenditure |
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277.677 |
448.605 |
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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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PAT / Total Income |
(%) |
0.88 |
0.55 |
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Net Profit Margin (PBT/Sales) |
(%) |
1.15 |
0.92 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
3.66 |
3.81 |
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Return on Investment (ROI) (PBT/Networth) |
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0.08 |
0.16 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.19 |
0.41 |
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Current Ratio (Current Asset/Current Liability) |
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9.70 |
9.47 |
LOCAL AGENCY
FURTHER INFORMATION
India is a country of large dimensions . It
spreads over a geographical area of 3.29 million square kilometers, which is about
2.5 per cent of the globe and makes the country the seventh largest in the
world . Its population of over 1,000 million ranks it the second largest
only next to Chain . India is Asia’s
third and world’s eleventh largest economy.
The metallurgical and mineral industries
constitute the bedrock of industrial development as the provide the basic raw
materials for most of the industries . India Produces as many as 84 minerals
comprising 4 fuel , 11 metallic , 49 nonmetallic industrial and 20 minor minerals
. Their aggregate Production in 1999-2000 was about 550 million tonnes ,
contributed by over 3,100 mines (reporting mines) Producing coal , lignite ,
limestone , iron ore , bauxite , copper , lead , zinc etc. More than 80 per
cent of the mineral production comes from production comes from open cast mines
and therefore , one must add the quantity of overburden to that of the mineral production in order to
assess the total amount of annual excavation in India’s mining sector .
The mining leases numbering 9,244 are spread over 21 states on about
13,00 mineral deposits occupying about 0.7 million hectares which is 0.21 per
cent of the total land mass of the country . The aggregate value of the mineral
production in 1999-2000 was more than Rs.450 billon (approximately $10 billion)
. The distribution of the value of mineral production shows that fuel minerals accounts for about 82 %
(of which solid fuels 44% and liquid / gaseous fuel is 38%) , metallic minerals
about 8% , non- metallic minerals 4% and the balance 6% is contributed by minor
minerals.
STRATEGY
A multi –pronged strategy would be adopted to
move towards the long –term policy goal . On the demand side , the strategy
would be to create incremental demand through promotional efforts , creation of
awareness and strengthening the delivery chain , particularly in rural areas .
On the supply side , the strategy would be to facilitate creation of additional
capacity , remove procedural and policy bottlenecks in the availability of
inputs such as iron ore and coal , make higher investments in R&D and HRD
and encourage the creation of infrastructure such as reads , railways , and
ports.
Steel Demand
Urban Areas: The preset steel consumption per
capital annum is about 30 kg in India , compared to 150 kg in the world , and
350 kg in the developed world . 1 The estimate urban consumption per capital
per annum is around 77 kg in the country , expected to reach approximately 165
kg in 2019-20 , implying a CAGR of 5 percent . Apart from the anticipated growth
in the construction , automobile . Oil and gas transportation , and
infrastructure sectors of the economy , conscious promotion of steel usage among architects , engineers and students by the institute of
Steel Development and Growth (INSDAG)
and the large producers will drive this additional consumption . Steps would be
taken to encourage usage of steel in bridges , crash barriers ,flyovers and
building construction . Benefits of steel usage would be added to the technical
education curricula in the country.
Rural Areas : The Rural Consumption of
Steel in India remains at around 2 kg per capital annum , primarily because
steel is perceived to be expensive among the village folks . Based on the
promotional efforts mentioned above , and an active focus on opening new block
level rural stock points , a target is set for raising the per capital rural
consumption of steel to 4 kg per annum by 2019-20, implying a CAGR of 4.4
percent
Exports : Although the focus of Indian steel industry is
on the domestic market , export will be another window on the demand side . The
growth of export of steel from India has been around 10 percent per annum over
the past decade . That specks for the international cost competitiveness of the
steel sector . It takes assiduous effort to create , and hold on to export
markets . While the business decision to export will depend on the prevailing
relative prices , the Government would encourage strategic alliances with
buyback arrangements and dedicated export production through 100% export
–or9iented units . A growth rate of around 13 percent per annum is envisaged up
to 2019-20 . The issues related to exports have discussed in section 10 on
Trade Policy.
Iron Ore : At present , the in – situ reserves of
relatively rich iron in India are 11.43
billion tonnes of haematite and 10.68
billion tonnes of magnetite ores. Through the reserves of haematite ore appear to be large , high –grade lumpy
reserves constitute only. 8.7 percent of the total . Further , the present
commercial
Mining capacity for iron ore is only 175 mT2.
Production of iron in 2004-05 was 145 MT , of which 54 MT was domestically
consumed and 78 MT was exported. Of the 600 mining leases . only 246 wear
operated in 2003 -04 .
Exports of iron ore : After remaining stagnate
at around 35 MT for a decade (Between 1991-92 to 1999-2000) , export of iron
ore from India have grow in the last 4 years to 78 MT in 2004-05 on the back of
large exports of iron ore fines to China . Fines and Concentrates , Which have
little use in India except as a negative environmental externality , make up
about 90 percent of Indian iron ore
exports currently . As investments are made into beneficiation m sintering and pelletization in the country
in the country , which will use these fines , the growth in exports of iron ore
is likely to decline . Exports have thus been estimated to be around 100 MT by
2019-20 . in terms of future policy export of iron ore , especially high –grate
lumps , would be confined to a maximum of five – years contracts . This
duration would be reviewed from time to time . A judicious balance would
continue to be maintained between exports and domestic supply of iron ore.
Quality Assessment :
ISO 9001:2000 Certified Company.
Incorporated on April 22, 1985 the subject is an ISO 9001:2000 certified company engaged in the business of Manufacturers and Exporters of Manufacturers And Exporters Electric Resistance Welded (ERW) Mild Steel Galvanised and Black Steel Pipes/Tubes.
Website details are attached herewith
RAWALWASIA ISPAT UDYOG (P) LIMITED" Company is the Flagship Company of Rawalwasia Group of Companies which was floated in the year 1985 by a team of Technocrats.
RAWALWASIA possesses a well – experienced Management team & technical staff (Over 200 employees) having vast experience in their respective field with Utmost dedication in its kind and acts. With its skill and confidence along with the co-operation of its Valued customers & suppliers RAWALWASIA is gaining popularity not only in Domestic Market but also in Alien Market.
The team of technically and professionally qualified Engineer’s ensures rigid quality control levels. The Raw Materials checked as per standard and relevant specifications right from raw material stage to finished products i.e. RAWALWASIA/HISAR Tubes.
Streamlined operation, an eye for innovation, adoption of latest systems and technologies, strong infrastructure support, pursuit of creative excellence, competitiveness on quality front and above all a vibrant work culture makes RAWALWASIA a ‘Happening Organization’.
RAWALWASIA Ispat Udyog (P) Limited is spread over a land area of more than 2,00000 Sqft. The Company is fully equipped with the latest and sophisticated Plant and Machinery Including Testing Equipment's. The machines and gauges are periodically calibrated by renowned agencies.
RAWALWASIA is having Plant capacity of 25,000 M.T. and Turn Over of more then Rupees 500 Million/annum.
Rawalwasia Ispat Udyog (P) Ltd. produces electric resistance welded (ERW) black, Galvanized Steel Pipes/Tubes in a size range of 15mm. N.B. to 100mm N.B. in the Light, Medium and Heavy classes of highest quality, confirming to IS: 1239 (Part-1) 1990. Rigid in-process quality control is maintained at every stage of the production right from the purchase of Raw Material to the finished products. The Factory is equipped with advanced & automatic technology machines for manufacturing pipes. The Manufacturing process is completely automatic and the Company is manufacturing pipes through E.R.W. Process.
Rawalwasia Ispat Udyog (P) Ltd. realizes
what distinguishes us from other Pipe manufacturers is our on-time delivery of
a quality product in premium condition. Careful steps are taken to ensure
perfect results through a streamlined, efficient, and controlled manufacturing
process based on precision at every step.
Rawalwasia Ispat Udyog (P) Ltd .Pipes is totally committed to innovative and updated quality testing procedures and investing in the tools and machines that provide the utmost in quality assurance. To that end, we have extended our machines that provide the utmost in quality assurance. To that end, we have extended our rigorous inspections and testing procedures through all stages of the production process
PACKING AND FORWARDING:
The uncompromising quest to satisfy our customer needs
facilitated in a consistent increase in our business. Today, we can proudly
declare that we have the large number of clients who are completely satisfied
and loyal towards our brand. In order to ensure total customer satisfaction, we
have built-up a solid infrastructure and techno-commercial network in India.
The company has a team of highly qualified and experienced supervisory
personnel who check and assure quality at each stage of production,
specifically checking the final product before it is dispatched from the
factory premises. Superior quality packing is provided to ensure adequate
protection of material in transit and handling etc.
Dedication, work culture and commitment have made us reach this pinnacle today.
It is easy to strive towards the stars but it takes a lot to maintain it
forever and ever. But again “commitment” surmounts the insurmountable, explored
the unfathomable and achieves the impossible.
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] 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.42.30 |
|
UK Pound |
1 |
Rs.84.11 |
|
Euro |
1 |
Rs.57.33 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
47 |
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 |
|