MIRA
INFORM REPORT
|
Report Date : |
20.04.2007 |
IDENTIFICATION
DETAILS
|
Name : |
ROYAL CUSHION
VINYL PRODUCTS LIMITED |
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Registered
Office : |
Shree Kamdhenu Estate, 4th Floor,
Near Tangent Furniture Showroom, Off Link Road, Chincholi Bunder, Malad
(East), Mumbai – 400 064, Maharashtra, India |
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Country : |
India |
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Financials (as
on) : |
31.03.2006 |
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Date of
Incorporation : |
21.11.1983 |
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Com. Reg. No.: |
11-31395 |
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CIN No.: [Company Identification No.] |
U24110MH1983PTC031395 |
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Legal Form : |
Public limited
liability company. The company’s
shares are listed on the Stock Exchanges |
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Line of
Business : |
Manufacturing and selling of floor coverings and other Poly Vinyl Chloride and/or polyurethane products. |
RATING &
COMMENTS
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MIRA’s Rating
: |
C |
RATING |
STATUS |
PROPOSED
CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be
exercised |
Credit not recommended |
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Maximum Credit
Limit : |
-- |
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Status : |
Poor |
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Payment
Behaviour : |
Delayed /
Defaulter |
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Litigation : |
Exist |
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Comments : |
The company in
particular and the group in general faces acute liquidity problem The entire net
worth of the company has been eroded. The company can be considered for any
business dealings on fully safe and secured trade terms and conditions, only.
The company has been referred to the Board for Industrial and Financial
Reconstruction (BIFR) under Sec.
15(1) of the Sick Industrial companies (Special Provisions) Act 1985 and BIFR
vide their letter dated 14.06.2000 has registered the said reference. |
LOCATIONS
|
Registered
Office : |
Shree kamdhenu Estate, 4th
Floor, Near Tangent Furniture Showroom, Off Link Road, Chincholi Bunder,
Malad (East), Mumbai – 400 064, Maharashtra, India |
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Tel. No. : |
91-22-40039110/40039111 |
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Fax No. : |
91-22-28773591 |
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Factory : |
Plot No. 319, Baska Village, Taluka Halol, Dist. Panchmahal, Gujarat, India |
DIRECTORS
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Name : |
Mr. M. K. Shah |
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Designation : |
Chairman &
Managing Director |
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Qualification
: |
M.Sc. |
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Name : |
Mr. V. K. Shah |
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Designation : |
Executive
Director |
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Name : |
Mr. A. V. Motasha |
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Designation : |
Director |
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Name : |
Mr. D. A. Motasha |
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Designation : |
Director |
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Name : |
Mr. M. A. Motasha |
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Designation : |
Executive Director |
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Name : |
Mr. J. A. Motasha |
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Designation : |
Director |
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Name : |
Mr. V. M. Dahake |
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Designation : |
Nominee I.D.B.I,
(till 23.12.2004) |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters
(Including Foreign Promoters) |
7161313 |
59.34 |
|
Mutual Fund &
UTI |
6000 |
0.05 |
|
Banks, Financial
Institutions, etc. |
1576730 |
13.07 |
|
Private Corporate
Bodies |
477986 |
3.96 |
|
NRIs |
45916 |
0.38 |
|
Indian Public |
2799267 |
23.20 |
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Grand Total |
12067212 |
100.00 |
BUSINESS DETAILS
|
Line of
Business : |
Manufacturing and selling of floor coverings and other Poly Vinyl Chloride and/or polyurethane products. |
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Products : |
Item Code No. (ITC Code) Product Description 39181000 Cushion Vinyl Flooring 39204100 PVC Rigid Films 59031000 PVC Leathercloth |
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Brand Names : |
"Royal
House". |
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PRODUCTION STATUS
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Particulars |
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Unit |
Installed Capacity |
Actual Production |
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Floor Covering |
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Lac. Sqm. |
220.00 |
0.00 |
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PVC Flooring |
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Lac. Sqm. |
109.00 |
140.60 |
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PVC Regid Film |
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MT |
10,000 |
201.25 |
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Leather Cloth |
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Lac. LM |
30.00 |
0.61 |
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GENERAL
INFORMATION
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No. of
Employees : |
1100 |
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Bankers : |
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Facilities : |
SECURED LOANS (Rs. In millions)
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Banking Relations : |
Poor |
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Auditors : |
Ø Chandrakant and Sevantilal Chartered Accountants Ø J. K. Shah and Company
Chartered Accountants 301, Lalita Tower, Near Hotel Rajpath,
Station-Akota Road, Vadodara – 390007,
Gujarat, India |
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Tel. No.: |
91-265- 235 3043 / 235 3470 |
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Associates : |
- Akruli, Kandivli (East) Mumbai - 400 101,
Maharashtra - Manufacturers of ‘Royal Touch’ brand synthetic Leathers Ø
Royal
Knitting Private Limited Ø
Vinyroyal
Plasticoats Limited Ø
Auto
Interiors India Private Limited Ø
Vijayjyot
Seats Limited Ø
Royal
Spinwell Private Limited Ø
Royal Jerfeb
Private Limited Ø
Bharat Motor
Accessories Ø
Nityanand
Overseas Trading Ø
Royal
Wellknit Private Limited Ø
Shreedha
Trading Consultancy Private Limited Ø
Trilokesh
Trading Private Limited Ø
Shreeshah
Trading Company Private Limited Ø
Vishwamurthy
Trading Company Private Limited Ø
Sumukh
Trading and Consultancy Services Private Limited Ø
M V Trust
Properties |
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Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30,000,000 |
Equity Shares |
Rs. 10/- |
Rs. 300.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12,067,212 |
Equity Shares |
Rs. 10/- |
Rs. 120.672 millions |
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|
Share Application
Money |
|
Rs. 62.315 millions |
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Total |
|
Rs. 182.987 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS
FUNDS |
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|
|
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1] Share Capital |
182.987 |
146.437 |
120.672 |
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2] Reserves &
Surplus |
728.408 |
728.408 |
728.408 |
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3] (Accumulated
Losses) |
(3157.202) |
(2850.388) |
(2457.418) |
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NETWORTH
|
(2245.807) |
(1975.543) |
(1608.338) |
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LOAN FUNDS |
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1] Secured Loans |
1692.124 |
1653.829 |
1508.551 |
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2] Unsecured
Loans |
433.236 |
363.159 |
363.031 |
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TOTAL
BORROWING
|
2125.360 |
2016.988 |
1871.582 |
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TOTAL
|
(120.447) |
41.445 |
263.244 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
927.984 |
1007.017 |
1079.515 |
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Capital work-in-progress
|
33.921 |
11.881 |
0.000 |
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INVESTMENT
|
2.070 |
3.309 |
2.220 |
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CURRENT ASSETS, LOANS & ADVANCES
|
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Inventories
|
185.244
|
102.222
|
96.212 |
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Sundry Debtors
|
57.927
|
91.040
|
66.134 |
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Cash & Bank Balances
|
8.634
|
13.914
|
12.946 |
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Other Current Assets
|
32.854
|
8.603
|
8.797 |
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Loans & Advances
|
50.206
|
56.551
|
36.239 |
Total Current Assets
|
334.865
|
272.330
|
220.328 |
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Less : CURRENT LIABILITIES & PROVISIONS
|
|
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Current Liabilities
|
954.257
|
836.936
|
645.133 |
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Provisions
|
471.064
|
432.871
|
393.686 |
Total Current Liabilities
|
1425.321
|
1269.807
|
1038.819 |
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Net
Current Assets
|
(1090.456)
|
(997.471)
|
(818.491) |
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MISCELLANEOUS EXPENSES
|
6.034 |
16.709 |
0.000 |
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TOTAL
|
(120.447) |
41.445 |
263.243 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
952.214 |
817.270 |
638.713 |
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Profit/(Loss) Before Tax
|
(303.546) |
(388.310) |
[369.525] |
Provision for Taxation
|
1.100 |
0.095 |
0.019 |
Profit/(Loss) After Tax
|
(304.646) |
(388.405) |
[369.544] |
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Import Value
|
431.302 |
320.628 |
161.150 |
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Total Expenditure
|
1255.761 |
1205.580 |
1008.234 |
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st
Qtr |
2nd Qtr |
3rd
Qtr |
|
Sales Turnover |
164.100 |
139.000 |
174.500 |
|
Other Income |
0.000 |
24.100 |
00.000 |
|
Total Income |
164.100 |
163.100 |
174.500 |
|
Total Expenditure |
185.100 |
171.900 |
194.000 |
|
Operating Profit |
(21.000) |
(8.800) |
(19.500) |
|
Interest |
71.900 |
94.300 |
81.700 |
|
Gross Profit |
(92.900) |
(103.100) |
(101.200) |
|
Depreciation |
26.500 |
12.600 |
18.900 |
|
Tax |
0.000 |
0.000 |
00.000 |
|
Reported PAT |
(119.400) |
(115.700) |
(120.100) |
200606 Notes Expenditure includes (Increase)/Decrease in
stock in Trade Rs (29.600)million Consumption of Raw Material Rs 136.720 million
Staff Cost Rs 12.035 million Manufacturing Cost Rs 30.768 million Selling &
Administration Cost Rs 11.124 million EPS is Basic & Diluted Status of
Investor Complaints for the quarter ended June 30, 2006 Complaints Pending at
the beginning of the quarter 01 Complaints Received during the quarter 01
Complaints disposed off during the quarter 02 Complaints unresolved at the end
of the quarter Nil 1. The above results are subject to the Limited Review by
Auditors of the Company and were taken on record by the Board of Directors at
their meeting held on July 31, 2006. 2. There are no separate reportable
segments as per Accounting Standard on segment reporting (AS 17) as the
Company's prime business manufacture of PVC Flooring. 3. The Company does not
have any liability towards deferred tax. 4. Figures have been regrouped
wherever necessary. 5. Auditors Comments on the Audited Accounts for the year
ended March 31, 2006
200609 Notes Expenditure includes (Increase)/Decrease in
stock in Trade Rs (19.333)million Consumption of Raw Material Rs 138.660
million Staff Cost Rs 10.660 million Manufacturing Cost Rs 31.232 million
Selling & Administration Cost Rs 9.950 million EPS is Basic & Diluted
Status of Investor Complaints for the quarter ended September 30, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter Nil Complaints disposed off during the quarter Nil
Complaints unresolved at the end of the quarter Nil 1. The above results are
subject to the Limited Review by Auditors of the Company and were taken on
record by the Board of Directors at their meeting held on October 31, 2006. 2.
There are no separate reportable segments as per Accounting Standard on segment
reporting (AS 17) as the Company's prime business manufacture of PVC Flooring.
3. The Company does not have any liability towards deferred tax. 4. Figures
have been regrouped wherever necessary. 5. Auditors Comments on the Audited
Accounts for the year ended June 30, 2006 i. Comment: Treatment of certain expenditure
as deferred revenue expenditure resulting in under statement of loss by Rs
2.538 million and over statement of reserves. Explanation: The total
expenditure of Rs 3.172 million incurred during the year 2005-06 have been
deferred for a period of five years in equal installments because of pendency
of restructuring of financial debts. During the quarter ended September 30,
2006, no further expenditure was incurred and carried forward. Amount of Rs
0.153 million has been debited to profit & loss account as part of the
deferred revenue expenditure, for the quarter ending September 30, 2006
(Previous year quarter September 30, 2005 Rs 1.718 million). ii. Comment :
Provision of Export Incentives of Rs 5.672 million Explanation : The Company
was entitled for the Export benefit under the Target Plus Scheme on account of
50% Incremental growth made during 2005-06. No provision has been made under
this scheme during the quarter ended September 30, 2006, since no new scheme is
announced for the current year. iii. Comment : Non disclosures of amounts owned
to Small Scale Industrial Undertaking. Explanation : The amount overdue on
account of principal and interest as on March 31, 2006 to small Scale and
Ancillary Industrial suppliers could not be determined. However, the Company
has not received and claim in respect of interest from such supplier. iv.
Comment : Non reconciliation of accounts and balances in respect of loans from
Banks / Financial Institutions. Explanation : Due to non-receipt of bank
statements / advice from certain Financial Institution & Banks, the Company
has made the provision of interest at the normal applicable rate. v. Comment :
Non provision for doubtful debts. Explanation : The Company is hopeful of
recovering old outstanding and not considering it as doubtful. Hence provision
is not made. No provision has been made in current year quarter ended on
September 30, 2006.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
0.16 |
0.15 |
0.14 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.42 |
0.49 |
0.41 |
|
Inventory |
5.01 |
8.59 |
7.75 |
|
Debtors |
9.66 |
10.85 |
11.48 |
|
Interest Cover Ratio |
0.16 |
-0.17 |
-0.19 |
|
Operating Profit Margin(%) |
19.21 |
2.83 |
2.75 |
|
Profit Before Interest And Tax Margin(%) |
8.16 |
-6.47 |
-8.41 |
|
Cash Profit Margin(%) |
(31.29) |
-36.28 |
-40.98 |
|
Adjusted Net Profit Margin(%) |
(42.33) |
-45.58 |
-52.14 |
|
Return On Capital Employed(%) |
0.00 |
0.00 |
0.00 |
STOCK PRICES
|
Face Value |
Rs. 10/- |
|
High |
Rs. (0.01) |
|
Low |
Rs. (0.01) |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was incorporated on 21st November, 1983 at Mumbai in
Maharashtra as a private limited liability company
having Company Registration Number 31395. It became a Deemed Public
Limited company
with effect from 1/7/1988.
It was promoted by
the Shah and Motasha families. The
company’s factory at Baska [Halol], Gujarat, manufactures and markets cushion
vinyl floorings with emphasis on multi-colour combinations, contemporary
designs and additional properties like sound insulation and varying thickness
for temperature differentiation.
The company’s
expansion of production capacity from 4.4 million sq. mtr to 8.8 million sq.
mtr. Pa [cost: Rs. 80 million] commenced operations from September, 1995. Its diversification into the manufacture of
PVC calender products [cost : Rs. 540 million] has started operations. It comprises 2 calender lines, both with
different configurations, to produce versatile quality PVC calender products
with a capacity of 10000 tpa for each line.
The company made a
rights issue of zero-interest FCDs for cash at par in May, 1995 to augment the
long-term working capital for the calender line at Savli and the printing line
at the Halol project. The company
obtained ISO-9002 certification in 1997 for its plant for manufacturing 2 metre
width Cushion Vinyl Flooring [CVF].
Company installed and commissioned new machineries, which was imported
from Germany for producing 3-4 mtr. Cushion vinyl flooring at Garadhia.
In view of the
accumulated losses the company made a reference of the BIFR for determining the
measures to be adopted for revival of the company. The Board has appointed IDBI as the operating agency and the
appraisal is in progress. The company
is planning to double the production for export market.
Subject was promoted by the Shah and Motasha families. The
company's factory at Baska (Halol), Gujarat, manufactures and markets cushion
vinyl floorings with emphasis on multi-colour combinations, contemporary
designs and additional properties like sound insulation, and varying
thicknesses for temperature differentiation.
The company's expansion of production capacity from 44 lac sq mtr to 88
lac sq mtr pa (cost: 8 cr) commenced operations from Sep'95. Its
diversification into the manufacture of PVC calender products (cost: Rs 54 cr)
has started operations. It comprises 2 calender lines, both with different
configurations, to produce versatile quality PVC calender products with a
capacity of 10,000 tpa for each line.
The company made a rights issue of zero-interest FCDs for cash at par in
May '95 to augment the long-term working capital for the calender line at Savli
and the printing line at the Halol project. The company obtained ISO-9002
certification in 1997 for its plant for manufacturing 2 metre width Cushion
Vinyl Flooring (CVF). Company installed & Commissioned new machineries,
which was imported from Germany for producing 3-4 Mtr. Cushion Vinyl Flooring
(CVF) at Garadhia.
In view of the accumulated losses the company made a reference to the
BIFR for determining the measures to be adopted for revival of the company. The
Board has appointed IDBI as the operating agency and the appraisal in in
progress. Since the future for this very bright the company is planning to
double the production for export market.
PERFORMANCE:
The company has achieved turnover of Rs. 691.910 millions as against Rs.
802.184 millions in previous year. The turnover was affected mainly due to
lower sales price realization per meter in local market. The pressure on sale
price was on account of introduction of VAT and stiff competition. The
production was affected due to the trial run taken during the year to develop
new products. Further, the high raw material cost due to increase in crude has
also affected profit margins.
During the year company entered into a One Time Settlement (OTS) with
Union Bank of India (UBI) where all liabilities were settled at Rs. 100.000
millions. The last installments pursuant to above OTS was made in the month of
July 2006 and excess provision to the extent of Rs. 254.000 millions was
written back during the year under review and included in other income.
Further, due to finalization of Arbitration petition filed against Herbert
Olbrich, GmbH and Co., KG (Germany) in ICC International Court of Arbitration ,
Paris, the deferred revenue expenditure of Rs. 85.900 millions has been
accounted during the year under review.
INDUSTRY STRUCTURE
AND DEVELOPMENTS :
The Company is
primarily engaged in manufacturing of Vinyl floorings, which are used in
households and commercial offices, showromms and transport sector. The Industry
is characterized by a few domestic manufacturers of PVC floor tiles, and off
late importers. The demand for the floor tiles is expected to grow 15 to 20%
per annum, on account of the growth in the housing sector and as a substitute
to hard flooring.
OPPORTUNITIES AND
THREATS :
The Company is a
market leader in Vinyl Flooring segment. The consumption of high end Vinyl
Flooring has significantly improved due to shopping malls and growth in IT and
Health Care Sector. demand in transport flooring will also increase due to
improved road infrastructure. The threat at present as envisaged is mainly from
import of flooring products. The volatility of PVC supply and prices is also a
threat to managing cost of production.
SEGMENT WISE OR PRODUCT
WISE PERFORMANCE :
The Company's prime
business is manufacture of PVC floorings and therefore, there are no separate
segments.
OUTLOOK :
The Company
regularly introduces new commercial product in market. The Company has recently
introduce Transport Flooring used in buses and railways and high performance
flooring for heavy traffic areas and has received positive response.
The Company is working on flooring requirements, specific to hospitals, BPO,
IT, and Corporate Office which has tremendous growth. With growing
opportunities your company hopes to increase the turnover and improve the
performance in future.
STATUS WITH BIFR :
As reported in the
earlier Annual Reports, the Company has been registered with BIFR in September,
2002. The IDBI and some other Banks have transferred their debt to ARGIL. As reported in the earlier Annual Reports, the Company has
been registered with BIFR since September, 2002. The IDBI and some other Banks
have transferred their debt to ARCIL. Restructuring package for the company is
in final stage of consideration with ARCIL. The company has already settled
debt of UBI in one time settlement and has initiated negotiation with rest of
banks for One Time Settlement. On finalization of above, a Draft Rehabilitation
Scheme (DRS) for the company will be recommended for approval to the Hon'ble
BIFR.
CHANGE IN REGISTERED OFFICE :
During
the year Registered office of the Company was changed to:
Shree
Kamdhenu Estate, 4th floor, Near Tangent Furniture Showroom, Off. Link Road,
Chincholi Bunder, Malad (West), Mumbai - 400 064, Maharashtra, India
Fixed Assets
®
Land (Freehold)
®
Buildings
®
Factory/Office/Canteen
®
Guest House
®
Internal Roads & Tube Well
®
Plant and Machinery
®
Vehicles
®
Furniture and Fixtures
®
Office
®
Guest House
®
Office & Other Equipments
AS PER WEBSITE
Royal
Cushion Vinyl Products Ltd. has two plants spread across 130 acres of land, at
Garadia, Halol, Gujarat, which was commissioned from 1996-97 onwards for the
manufacture of Vinyl Floorings of different types for various end-users and
Rigid Films. It sells to customers in over 40 countries.
It
is an ISO 9002 company with a RWTUV, which is a German certification
body.
Exports
RCVP exports 50% of its
production to developing countries with its major markets in Sudan, Ethiopia,
Kenya, Tanzania, Saudi Arabia, Mombasa, Nigeria, etc.
Our Product Differentiators can be defined as:
·
Design
Innovation / Attractive Colours
·
Quality
Consistency
·
Brand Image
·
Gloss Level
On testing our product
along with other international manufacturers’ products on the glossmeter, the
results have shown that RCVP’s products can be produced at a gloss level of 7%
to 30% higher than that of any other International brand in the world.
In other words our U.S.P is :
Innovative Designs with Highest Gloss Levels compared to any other product
available in the world.
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 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.41.67 |
|
UK Pound |
1 |
Rs.83.41 |
|
Euro |
1 |
Rs.56.61 |
SCORE & 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 |
|