MIRA
INFORM REPORT
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Report Date : |
22.08.2007 |
IDENTIFICATION DETAILS
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Name : |
ECOBOARD INDUSTRIES LIMITED |
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Formerly Known As : |
WESTERN BIO-SYSTEMS LIMITED |
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Registered Office : |
65/1 A, “Akarshak”, ECO House, Opposite Nal Stop, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
20.11.1991 |
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Com. Reg. No.: |
64087 |
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CIN No.: [Company
Identification No.] |
L24239MH1991PLC064087 |
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Legal Form : |
Public Limited
Liability Company. The company’s
shares are listed on the Stock Exchange |
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Line of Business : |
Manufacturing and
Marketing of Anaerobic Water Treatment Plants, Parts and Components of the
Plants and Particle Board Laminated.
It is also trading in Steels and Structurals |
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 1400000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having satisfactory
track. Directors are reported as
experienced and respectable businessman.
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 dealing at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
65/1 A, “Akarshak”, ECO House, Opposite Nal Stop, |
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Tel. No.: |
91-20-25432345/25465327/ 32918303 |
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Fax No. : |
91-20-25465328 |
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E-Mail : |
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Website : |
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Bio Gas Division : |
36/1, Preet Chambers, 2nd Floor, Wakdewadi, |
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Tel. No.: |
91-20-66011653 / 32931825 |
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Fax No.: |
91-20-66011653 |
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E-Mail : |
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Corporate Office : |
65/1-A, “Akarshak”, ECO House, Opp. Nal Stop, |
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Tel. No.: |
91-20-25432345 / 25441485 |
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Fax No.: |
91-20-25465328 |
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E-Mail : |
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Corporate Office : |
36/1, Preet Chambers, 2nd Floor, Wakdewadi, |
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Tel. No.: |
91-20-25432345 / 25441485 |
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Fax No.: |
91-20-25465328 |
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E-Mail : |
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Factory 1 : |
Jambhulwadi, Near Islampur, Walwa, Sangli 415 407. |
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Tel. No.: |
91-2342-252818 |
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Fax No.: |
91-2342-252819 |
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E-Mail : |
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Factory 2 : |
Near Akluj, Post Velapur, Malshiras, Solapur 413 118. |
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Tel. No.: |
91-2185-245261 / 245262 |
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Fax No.: |
91-2185-245203 |
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E-Mail : |
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Branches : |
Located at :
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DIRECTORS
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Name : |
Mr. V S Raju |
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Designation : |
Director |
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Address : |
11 National Co-Op Housing Soc Ltd, |
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Tel No. : |
91-20-25883636 |
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Fax No. : |
91-20-25465328 |
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Name : |
Mr. P. Satyanarayana Raju |
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Designation : |
Director |
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Address : |
Plot No. 211 J; Road No. 76, Jubilee
Hills, |
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Tel No. : |
91-40-23078215 / 23555010 /
26607094/56465634 |
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Name : |
Mr. G. Ramakrishna Raju |
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Designation : |
Director |
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Address : |
25/A, I.A.H.B. Colony, Opp. Police Lines
Beat No. 39, Secunderabad 500003 |
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Tel No. : |
91-40-27900989 / 27903585 / 56645456 |
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Fax No. : |
91-40-27908742 |
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Name : |
Mr. Srinivas Raju P. |
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Designation : |
Director |
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Address : |
Shreyas, Road No. 92, Jubilee Hills, Phase
III, |
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Name : |
Dr. N.A. Ramaiah |
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Designation : |
Director |
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Address : |
14, Ocean View Layout, Visakhapatanam
530003, A.P. |
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Name : |
Mr. U S Kadam |
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Designation : |
Director |
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Address : |
311, Dhoot Centre, |
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Name : |
Mr. Ramchandra Raju P.S. |
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Designation : |
Director |
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Address : |
302 |
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Name : |
Mr. Sunnam Venkataswamy |
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Designation : |
Director |
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Address : |
H. No. 60, Road 13, Banjara Hills, |
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Name : |
Mr. G.M. Yadwadkar |
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Designation : |
Director |
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Address : |
Industrial Development Bank of India Ltd.,
IDBI Complex, Near Lal Bungalow, |
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Name : |
Mr. A.B. Saha |
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Designation : |
Director (IIBI) |
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Address : |
Industrial Investment Bank of |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and
Marketing of Anaerobic Water Treatment Plants, Parts and Components of the Plants
and Particle Board Laminated. It is
also trading in Steels and Structurals |
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Imports : |
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Products : |
Raw materials and
capital goods |
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Countries : |
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Terms : |
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Purchasing : |
L/C |
GENERAL INFORMATION
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No. of Employees : |
180 |
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Bankers : |
v
Bank
of v
IDBI
Bank Limited, Pune, v
The
United Western Bank Limited, Pune, v
The
Federal Bank Limited, Pune, v
The
South Indian Bank Limited, Pune, |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Chaturvedi SK
& Fellows Chartered
Accountants |
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Associates/Subsidiaries : |
v
Western
Fruit and Vegetables Limited v
Pravana
Udyog Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
25000000 |
Equity Shares |
Rs. 10/- each |
Rs. 250.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
1,69,12,000 |
Equity Shares |
Rs. 10/-
each |
Rs. 169.120
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
169.100 |
162.800 |
162.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
186.700 |
153.400 |
[212.900] |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
355.800 |
316.200 |
[50.100] |
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LOAN FUNDS |
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1] Secured Loans |
288.700 |
495.800 |
890.000 |
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2] Unsecured Loans |
144.700 |
19.300 |
7.600 |
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TOTAL BORROWING |
433.400 |
515.100 |
897.600 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
789.200 |
831.300 |
847.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
601.100 |
644.000 |
693.500 |
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Capital work-in-progress |
0.100 |
1.900 |
0.900 |
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INVESTMENT |
0.000 |
0.000 |
0.200 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
245.700
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210.300 |
227.000 |
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Sundry Debtors |
49.800
|
53.300 |
27.600 |
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Cash & Bank Balances |
11.400
|
12.900 |
14.500 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
23.000
|
29.200 |
24.200 |
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Total
Current Assets |
329.900
|
305.700 |
293.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
141.900
|
120.300 |
141.000 |
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Provisions |
0.000
|
0.000 |
0.000 |
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Total
Current Liabilities |
141.900
|
120.300 |
141.000 |
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Net Current Assets |
188.000
|
185.400 |
152.300 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.600 |
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TOTAL |
789.200 |
831.300 |
847.500 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
501.300
|
454.300
|
319.300
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Other Income |
13.000
|
181.500
|
11.000
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Stock Adjustment |
56.500
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[44.100]
|
[8.600]
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Total Income |
570.800 |
591.700 |
321.700 |
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Profit/(Loss) Before Tax |
34.900
|
189.000
|
[144.000]
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Provision for Taxation |
1.400
|
00..000
|
0.000
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Profit/(Loss) After Tax |
33.500
|
189.000
|
[144.000]
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Earnings in Foreign Currency : |
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Export Earnings |
13.400 |
339.000 |
0.000 |
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Total Earnings |
13.400 |
339.000 |
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Expenditures : |
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Raw Materials |
219.300
|
162.400
|
122.400
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Excise Duty |
20.800
|
00.000
|
8.300
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Power & Fuel Cost |
32.500
|
31.600
|
26.400
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Other Manufacturing Expenses |
33.200
|
18.600
|
13.300
|
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Employee Cost |
39.700
|
37.400
|
37.300
|
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Selling and Administration
Expenses |
91.700
|
78.800
|
63.100
|
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Miscellaneous Expenses |
19.000
|
09.600
|
31.400
|
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Interest & Financial Charges
|
28.200
|
13.200
|
105.900
|
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Depreciation |
51.500
|
51.100
|
57.600
|
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Total Expenditure |
535.9 |
402.7 |
465.7 |
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SUMMARISED RESULTS
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PARTICULARS |
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|
31.03.2007 [Full Year] |
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Sales Turnover |
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|
446.400 |
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Other Income |
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|
47.200 |
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Total Income |
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|
493.600 |
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Total Expenditure |
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|
392.800 |
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Operating Profit |
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|
100.800 |
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Interest |
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|
36.300 |
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Gross Profit |
|
|
64.500 |
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Depreciation |
|
|
51.300 |
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Tax |
|
|
1.600 |
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Reported PAT |
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|
11.600 |
|
Dividend (%) |
|
|
0.000 |
QUARTERLY RESULTS
|
PARTICULARS |
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|
30.06.2007 [1st
Quarter] |
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Sales Turnover |
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|
119.300 |
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Other Income |
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|
1.000 |
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Total Income |
|
|
120.300 |
|
Total Expenditure |
|
|
93.500 |
|
Operating Profit |
|
|
26.800 |
|
Interest |
|
|
7.500 |
|
Gross Profit |
|
|
19.300 |
|
Depreciation |
|
|
11.700 |
|
Tax |
|
|
0.200 |
|
Reported PAT |
|
|
7.400 |
200706 Quarter 1 --------------- Notes Expenditure Includes
(Increase)/Decrease in Stock in Trade Rs 2.414 million Consumption of Raw
Materials Rs 38.484 million Staff Cost Rs 11.783 million Power & Fuel Rs
9.799 million Other Expenditure Rs 30.997 million Provision for Tax includes
Fringe Benefit Tax Status of Investor Complaints for the quarter ended June 30,
2007 Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 03 Complaints disposed off during the quarter 03 Complaints
unresolved at the end of the quarter Nil 1. The figures for the previous
quarter and comparative figures for the previous year have been regrouped /
re-stated wherever necessary. 2. The above results have been subjected to the
limited review by the statutory Auditors in terms of Clause 41 of the Listing
Agreement. The Same have been approved and taken on record by the Board of
Directors at its meeting held on
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
1.41 |
5.31 |
39.31 |
|
Long Term Debt-Equity Ratio |
0.99 |
4.29 |
33.08 |
|
Current Ratio |
1.17 |
1.13 |
1.08 |
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TURNOVER RATIOS |
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|
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Fixed Assets |
0.48 |
0.43 |
0.31 |
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Inventory |
2.20 |
2.08 |
1.31 |
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Debtors |
9.72 |
11.23 |
8.39 |
|
Interest Cover Ratio |
2.24 |
1.92 |
[0.17] |
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Operating Profit Margin(%) |
22.86 |
16.82 |
12.56 |
|
Profit Before Interest And Tax
Margin(%) |
12.59 |
5.57 |
-5.48 |
|
Cash Profit Margin(%) |
16.96 |
13.91 |
[20.61] |
|
Adjusted Net Profit Margin(%) |
6.68 |
2.66 |
[38.65] |
|
Return On Capital Employed(%) |
5.29 |
2.44 |
0.00 |
|
Return On Net Worth(%) |
4.68 |
3.64 |
0.00 |
LOCAL AGENCY FURTHER INFORMATION
The company’s fixed
assets of important value include land, building, plant & machinery,
electrical installations, furniture & fixtures, equipments, vehicles and
tools & patterns
HISTORY:
Incorporated in Nov.'91, Western Bio Systems (WBSL) received
a certificate for commencement of business in Dec.'91. WBSL is engaged in the
erection of anaerobic waste-water treatment plants and continuous fermentation
and distillation plants. The promoters of the company, A V Patil, V S Raju and
A B Narula, were already manufacturing waste water treatment plants through a
partnership firm called Chemical Consultants & Engineers (CCE).
It had erected and commissioned 20 bio-gas plants for major distilleries
in
Company carry out the scheme of merger of Deccan Fibre Boards Limited with
Western Bio Systems Limited, to give new identity company decided to adopt new
name "ECOBOARD Industries Limited". Company's new plant at Velapur
started its commercial production in July 1999. With the commissioning of new
plant, company will become the largest producer of particle boards in the
country.
The Company increases its installed capacity to produce Ecoboard from 15 lacs
Sqm. per annum to 51 lacs Sq. per annum. This plant provides boards of various
sizes to meet a variety of market segments.
Operations:
During the year 2005-06, the sales at Rs.501.256 Millions as
compared to Rs.454.272 Millions have reflected an increase of over 10%. During
the year under review, the unprecedented floods in the
Future Prospects:
General Economy is looking up. Satisfactory monsoon during
the previous year has ensured availability of the basic raw material `Bagasse'
in sufficient quantity and at competitive price. The use of other agricultural
waste material like Tur, Maize, Jawar Stalks as raw material as an alternative
to Bagasse may also reduce their total dependency on Bagasse. The Company is
seriously contemplating value addition by venturing into furniture
manufacturing using ECOBOARD. With aggressive marketing, the Company hopes to
achieve higher turnover during the current year.
Mr. U.S. Kadam and Mr. Ramchandra Raju P. S. Directors, would retire by
rotation at the forthcoming Annual General Meeting of the Company; and being
eligible, would offer themselves for reappointment.
ISO 9001 & 14001 Certification
During the year under review, based on implementation of
best practices on Quality Management and Environmental Management , the Company
has been awarded the ISO 9001 and ISO 14001 certification for its offices and
Factories at Velapur and Islampur.
Conservation of Energy, Technology Absorption & Foreign Exchange Earnings
& Outgo:
Review of Operations:
Company's operations remained stable during the year. Gross
Sales during the year were at Rs.501.256 Millions as compared to Rs.454.272 Millions during the
previous year.
There was operating profit of Rs. 114.376 l Millions as against Rs.76.145
Millions during the previous year before providing for interest and
depreciation.
The net profit for the year was Rs.34.895 Millions as against Rs.188.987
Millions during the previous year.
The main observation of the management in this regard were as follows:
* Exemption from payment of Excise duty has its positive impact which
enables the Company to remain competitive vis-a-vis other Plywood
manufacturers.
* During the year, the Company had maintained production and sales above
the break-even point.
* The low level of capacity utilisation and high inventory is
attributable to inability to penetrate into the market in a big way due to cheap imports and
competition from Plywood manufacturers from un-organised sector.
* The Company was successful in keeping the operating costs under strict
checks.
* Bio Gas Division activities are encouraging during the year due to,
improvement in the Sugar Industry.
Industry Outlook:
Long term outlook for Wood Free Particle Boards continues to look positive.
However, appreciation for Environment friendly products is not picking up a
momentum in
The satisfactory spell of monsoon during the previous year has put away the
large scale worry about the availability of the main raw material, viz. Bagasse
at reasonable prices. However it is a need of the hour to consider use of
alternate raw materials viz. various types of agri-waste material which is
available ins abundant quantity in the un-orgarnsed sector. Channelising the
supply of such raw material in an organised manner has to be viewed seriously.
The Wood Free Particle Board Manufacturers need to put in joint and concerted
efforts in this regard.
Company Outlook:
The Company has reasonable level of Bagasse stock for the
current year. Moreover, in future. availability of alternate raw material in
the form of Cotton Stalks. Jawar & Tur Stalks and other forms of agri-waste
and the capability of the Company to use the same effectively has reduced the
risk of getting stuck in case of non availability of Bagasse.
The Company is putting in concerted efforts to increase its market share and is
planning to offer value added quality products such are ready to assemble/use
office and domestic furniture at affordable prices. Under these circumstances,
the outlook is certainly positive for the current year and for years to
come.
AS PER WEBSITE DETAILS:
CORPORATE MESSAGE:
1. Ecoboard Industries Ltd., has its
genesis as ‘Western Bio System Ltd.’ and ‘Deccan Fibre Boards Ltd.’. The transformation,
down the memory came; converged into formation of Ecoboard Industries Ltd. on
The
Bio System division caters for Project Engineering on turnkey basis in
execution of Bio System plants, to handle distillery toxic residue, spent wash,
to transform into Bio-gas as fuel i.e. waste water to wealth. EIL has to its
credit, of executing approximately 45 plants in
2. Having
established well in that line of business with encouraging results, EIL
diversified toward agro products i.e. transforming rural based agri residues
(waste) to plain and prelaminated particleboards. Thus by offering wood free
substitutes, contributes towards saving of trees and conserving forest wealth
in the interest of the nation for protection of environment. The particleboard’s
are manufactured from non-conventional and renewable agro-residues such as
sugarcane baggage, cotton stalk, bajra- tuar stalk, etc. EIL has two plants at
Jambulwadi in Kolhapur District and Velapur near Pandharpur of Solapur district
and is a pioneer in commercializing the concept of Agro boards for the first
time in
3. The emphasis
on protection of environment is felt and all attempts are made to control
pollution, grow more trees, protect waters, etc. Hence there should be conscious
effort by all, in ushering in agro products to wide usage in protection of
environment. Govt. departments, construction Industry, Interior designers and
Architects, Organization / Institutions and finally the conscious citizen
should subscribe for agro boards in all applications replacing wood / plywood
usage
4. It is
without further emphasis, the change leaders in bringing Eco-friendly products
to wide usage would be general public, Architects and Interior Designers,
Construction Industry, Govt. Depts. and Institutions etc.
5. The
particleboard from Ecoboard Industries Ltd. is a quality product certified by BIS and
also has higher quality features.
Ecoboard in addition, is the only
particle board in the country which has awarded for the first time in India a
certification of ‘ECOMARK’
labeling – mark of Eco-friendliness’
and quality. It is a mark of business of the future.
6. Ecoboard
Industries has the major manufacturing capacity in the country. It is a one stop shop to meet all the
requirements, with the sizes: 8’ x 4’ and 13.5’ x 6’, thickness in 9mm, 12mm,
15mm, 18mm, 21.4mm, 25mm, 30mm, 32mm, 35mm. It has also 25 shades and 5 types
of finishes for its boards. The Ecoboards are certified for Grade 1 and Grade 2
applications. The boards meet Class ‘B’
fire retardant feature and is under process for upgrading to Class ‘A’. Ecoboard
Industries Ltd. has a unique approach of total
quality management in handling and preparation of Bagase,
preparation of resins and chemicals, impregnation of imported paper, lamination
of paper etc.
7. In its range
of applications they do cover paneling, partitioning, furniture (both office
and domestic), laminated flooring, doors, false ceiling and Grades OSL (one
side décor and other side white balancing paper) and BSL (both sides décor).
8. Their valued
clientele include reputed furniture industry leading builder promoters,
conscious Architects and Interior Decorators, carpenters and channel partners
in the trade.
9. They request
all conscious citizens for the national cause, support the quality product of
Ecoboard for the benefit of their nation and theirselves.
CMT REPORT (Corruption, Money Laundering
& Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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. 41.18 |
|
|
1 |
Rs. 82.41 |
|
Euro |
1 |
Rs. 55.85 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
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 |
|