MIRA
INFORM REPORT
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Report Date : |
29.08.2007 |
IDENTIFICATION DETAILS
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Name : |
YUKEN INDIA LIMITED |
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Registered Office : |
PB 16, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
28.06.1976 |
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Com. Reg. No.: |
003017 |
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CIN No.: [Company
Identification No.] |
U29150KA1976PLC003017 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRY00006G |
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Legal Form : |
Public Limited Liability Company. Company’s Shares are listed on stock
exchanges. |
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Line of Business : |
Manufacturers and Exporters of Hydraulic Low, Medium Pressure Valves. Hydraulic
Pumps, Valves, Hydraulic Power Packs. Hydraulic Cylinders, Controllers,
Hydraulic Accessories, Vane Pumps, Low Noise Pumps, Piston Pumps, Pressure
Controls, Check Valves, Direction Controls, Control Valves, Mobile Hydraulic
Products, Cylinders and Accumulators, Hydraulic Power Units, Pressure
Switches, Manifolds etc. |
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 830000 |
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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 experience and respectable businessmen.
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 : |
PB 16, |
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Tel. No.: |
91-80-28452262 / 28454606 |
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Fax No.: |
91-80-28452261 / 28451560 |
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E-Mail : |
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Website : |
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Factory 1 : |
No. 15, |
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Tel. No.: |
94-112-564037 |
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Mobile No.: |
94-777-415048 |
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E-Mail : |
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Branches : |
Located at: v
Mumbai v
Ahmedabad v
Pune v
v
v
v
Chennai v
v
v
v
v
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DIRECTORS
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Name : |
Mr. Y Mukaide |
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Designation : |
Chairman |
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Name: |
Mr. H M Narasinga Rao |
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Designation: |
Vice President |
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Name : |
Mr. Y Sakakibara |
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Designation : |
Director |
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Name : |
Mr. S Yamanoi |
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Designation : |
Director |
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Name : |
Mr. R Srinivasan |
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Designation : |
Director |
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Name : |
Mr. V Balaji Bhat |
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Designation : |
Director |
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Name: |
Mr. N S Mohanram |
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Designation: |
Additional Director |
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Name: |
Mr. Premchander |
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Designation: |
Additional Director |
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Name: |
Mr. C P Rangachar |
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Designation: |
Managing Director |
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Name: |
Mr. Narayan Rao |
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Designation: |
Executive Director |
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Name: |
Mr. K. Gopalkrishna |
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Designation: |
Executive Director |
KEY EXECUTIVES
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Name : |
Mr. B R Satish Chandra |
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Designation : |
General Manager |
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Name : |
Mr. S. Anthony Cruz |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Exporters of Hydraulic Low, Medium Pressure Valves.
Hydraulic Pumps, Valves, Hydraulic Power Packs. Hydraulic Cylinders, Controllers,
Hydraulic Accessories, Vane Pumps, Low Noise Pumps, Piston Pumps, Pressure
Controls, Check Valves, Direction Controls, Control Valves, Mobile Hydraulic
Products, Cylinders and Accumulators, Hydraulic Power Units, Pressure
Switches, Manifolds etc. |
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Products: |
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Exports : |
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Countries : |
Giappone, Taiwan (Formosa), China, Spagna, Gran Bretanga Asia, Europe,
Middle East, USA, Japan, Spain, United Kingdom |
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Imports : |
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Countries : |
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GENERAL INFORMATION
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Customers: |
v
TISCO v
ABB v
HMT v
Bajaj Auto v
Godrej v
Escorts |
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No. of Employees : |
270 |
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
v
Fraser and Ross Chartered Accountant v
Deloitte Haskins and Sells Chartered
Accountants |
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Associates/
Subsidiaries: |
v
Yuken Foundry Division: Established 1986, Present Capacity 1200 TPA, expanding to 2400tpa. Located at Site No.16/C, Doddanekkundi Industrial Area, Phase-2, Mahadevpura Post, Phone No. : +91-80-28541059. v
Coretec Engineering: Established 1993, to manufacture iron cores for Solenoid Valves. Located at B-59, Devasandra
Industrial Estate, Mahadevapura, Phone No. : +91-80-51163036 v
Hydromotor Division: Sai India Limited: Established 1991, to manufacture Radial Piston
Motors in Collaboration with Sai of Italy. Post, Phone No. +91-80-28524434, 28524435, 28475056. v
Cylinder Division; Yuflow Engineering P Limited: Established 2001 to manufacture Hydraulic Cylinders for Industrial
Use. Located at F-10, Industrial Estate, Ambattur, Chennai: 600058, Phone No. +91-44-26254851, 26521133 v Sri Plas 1, 2
and 3: Established 2002 as an ancillary unit for machined components
supply to YIL. Located at C-120, Devasandra Industrial Estate, Mahadevapura, Phone No. +91-80-28514853 v Grotek: Established 2003 to manufacture Solenoid Coils. Located at 37, Chennai, Tamil Nadu 600097, Phone No. +91-44- 22324951 v Gear Pump
Division: Established 2005 to manufacture Gear Pumps. Located at, 4th West, IDA, Pattancher Medak Distt. 502319, Phone No. +91-84-55551556 |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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6,000,000 |
Equity Shares |
Rs. 10.00 each |
Rs. 60.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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3,000,000 |
Equity Shares |
Rs. 10.00
each |
Rs. 30.000
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
30.000 |
30.000 |
30.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
179.000 |
149.100 |
131.100 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
209.000 |
179.100 |
161.100 |
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LOAN FUNDS |
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1] Secured Loans |
252.500 |
298.600 |
184.000 |
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2] Unsecured Loans |
52.400 |
14.900 |
57.400 |
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TOTAL BORROWING |
304.900 |
313.500 |
241.400 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
513.900 |
492.600 |
402.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
217.700 |
192.500 |
136.300 |
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Capital work-in-progress |
4.700 |
7.100 |
3.500 |
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INVESTMENT |
13.400 |
13.500 |
5.400 |
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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 |
175.300
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147.700
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136.400 |
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Sundry Debtors |
272.300
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249.900
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246.900 |
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Cash & Bank Balances |
27.300
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20.200
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25.700 |
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Other Current Assets |
0.000
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0.000
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0.000 |
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Loans & Advances |
189.600
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49.400
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40.000 |
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Total
Current Assets |
664.500
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467.200
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449.000 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
220.500
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170.900
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164.300 |
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Provisions |
165.900
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16.800
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27.400 |
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Total
Current Liabilities |
386.400
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187.700
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191.700 |
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Net Current Assets |
278.100
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279.500
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257.300 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
513.900 |
492.600 |
402.500 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
989.900 |
818.900 |
745.800 |
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Other Income |
20.000 |
9.700 |
48.400 |
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Total Income |
1009.900 |
828.600 |
794.200 |
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Profit/(Loss) Before Tax |
69.900 |
41.700 |
94.500 |
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Provision for Taxation |
25.700 |
17.500 |
30.900 |
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Profit/(Loss) After Tax |
44.200 |
24.200 |
63.600 |
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Expenditures : |
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Raw
Materials |
467.200 |
380.100 |
364.200 |
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Excise
Duty |
140.800 |
117.300 |
102.500 |
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Power
& Fuel Cost |
12.800 |
10.700 |
9.400 |
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Other
Manufacturing Expenses |
38.500 |
29.300 |
25.700 |
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Employee
Cost |
121.700 |
106.200 |
84.200 |
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Selling
and Administration Expenses |
94.800 |
84.800 |
71.200 |
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Miscellaneous
Expenses |
17.500 |
14.500 |
17.400 |
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Interest
& Financial Charges |
28.300 |
25.800 |
12.000 |
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Depreciation
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18.400 |
18.200 |
13.300 |
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Total Expenditure |
940.000 |
786.900 |
699.900 |
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QUARTERLY
RESULTS
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PARTICULARS |
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30.06.2007 (1ST Quarter) |
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Sales Turnover |
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196.700 |
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Other Income |
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3.300 |
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Total Income |
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200.000 |
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Total Expenditure |
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|
177.200 |
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Operating Profit |
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22.800 |
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Interest |
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|
5.800 |
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Gross Profit |
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17.000 |
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Depreciation |
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4.900 |
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Tax |
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5.200 |
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Reported PAT |
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7.600 |
200706
1st Quarter
Notes Expenditure Includes (Increase)/Decrease in stock in Trade
Rs (6.30)million Consumption of Raw Material Rs 115.10 million Staff Cost Rs
33.90 million Other expenditure Rs 34.50 million Tax Includes Provision for
Income Tax Rs 4.80 million Deferred Tax Rs (0.70) million Fringe Benefit Tax Rs
0.40 million EPS is Basic and Diluted 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 04 Complaints disposed off during
the quarter 04 Complaints unresolved at the end of the quarter Nil 1. The above
unaudited results have been taken on record by the Board of Directors at their
meeting held on July 25, 2007. 2. The unaudited results for the quarter ended
June 30, 2007 have been subjected to Limited Review by the Statutory Auditors
of the Company. 3. The Company's operation predominantly fall under Hydraulic
Control and Motion segment and therefore the figures shown above related to the
said segment. 4. Previous period figures have been regrouped wherever necessary.
KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt-Equity
Ratio |
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1.59 |
1.63 |
1.45 |
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Long Term
Debt-Equity Ratio |
|
0.87 |
0.86 |
0.70 |
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Current Ratio |
|
1.28 |
1.43 |
1.32 |
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TURNOVER RATIOS |
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Fixed Assets |
|
3.05 |
3.06 |
3.72 |
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Inventory |
|
6.13 |
5.76 |
6.74 |
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Debtors |
|
3.79 |
3.30 |
3.63 |
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Interest Cover
Ratio |
|
3.47 |
2.62 |
7.23 |
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Operating Profit
Margin |
(%) |
11.78 |
10.47 |
13.42 |
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Profit Before
Interest And Tax Margin |
(%) |
9.92 |
8.24 |
11.64 |
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Cash Profit
Margin |
(%) |
6.32 |
5.18 |
8.54 |
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Adjusted Net
Profit Margin |
(%) |
4.47 |
2.96 |
6.76 |
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Return on
Capital Employed |
(%) |
19.51 |
15.08 |
26.11 |
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Return on Net
Worth |
(%) |
22.78 |
14.23 |
37.20 |
STOCK PRICES
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Face Value |
Rs. 10.00 |
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High |
Rs. 199.00 |
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Low |
Rs. 195.05 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject was incorporated in Jun.'76 and was promoted by M Varadarajan, M
Parthasarathy and C P Rangachar. Subject commenced commercial production of
hydraulic equipment in 1978 in technical collaboration with
In 1986, the company acquired facilities for producing intricate iron
castings required for its hydraulics division. It came out with a Rs 6.000
millions public issue in Apr.'91 to part-finance the
modernization-cum-expansion project for its hydraulics and foundry divisions to
manufacture new range of products and upgrading the manufacturing process to
improve the existing range of products. Besides pumps and valves, YIL also
manufactures cylinders, accumulators and power packs. The company entered into
a fresh technical and financial collaboration agreement with Yuken Kogyo
Company,
The company has implemented an expansion programme in the field of hydraulics,
and also set up a hydraulics school in
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The
changing economic and business conditions, rapid technological innovation and
globalization are creating an increasingly competitive market environment that
is driving corporations to transform the manner in which they operate.
Customers are increasingly demanding improved products and services with
accelerated delivery times and at lower prices. There is an increasing need for
highly skilled technology professionals in the markets in which they operate.
They take utmost care to cope with the advancing trends in business and enhance
their process and methods to achieve world class quality in all their business
activities.
OPPORTUNITIES, THREATS, RISKS AND
CONCERNS
Opportunities
The Company is one of the leading manufacturers and suppliers of power saving
Oil Hydraulics with state of the art, efficiency and reliability. They provide
a comprehensive range of hydraulic products, services both within and outside
The Company's opportunities for sustaining profitable growth emerge from
increasing acceptance of outsourcing as a relevant business strategy in a
globalized world as well as from new range of products that can be offered to
the customers.
Some of the key trends in the Industry that are favorable to the Company to
exploit these emerging opportunities are,
i) Customers are more comfortable to partner with Them in view of
enhanced quality, reduced lead time and competitive prices.
ii) Customers are demanding delivery excellence from distributed business
units using uniform processes globally to deliver a high quality of
service.
In order to leverage these opportunities, the Company has over the years,
extended its geographic foot print for effectively marketing its offers.
Threats
Some of the key changes in the Industry unfavorable to the Company
are,
i) Increased competitive pressures including higher costs as a result of
wage inflation due to the intense competition for skilled human resources as
well as pricing pressures due to heightened competition from global and Indian
hydraulics manufacturing Companies.
ii) To cater to increasing customer demand with strong technology and
domain knowledge, the Company will have to invest increasingly higher amounts
in equipments, facilities and training of its personnel who could subsequently
be lured away by competitors.
RISK MANAGEMENT
Risk assessment and management is core to the Company's business. A
detailed risk management procedure is being drawn up during the year. The Board
will review these procedures periodically and action will be taken to control
the risk through means of properly defined framework.
FINANCIAL PERFORMANCE
The financial statements have been prepared in compliance with the
requirements of the Companies Act, 1956, and generally accepted accounting
principles in
Profile:
Subject was set up in 1976 in Technical and Financial Collaboration with YUKEN KOGYO COMPANY LIMITED, JAPAN
(YKC) for the manufacture of Oil Hydraulic Equipment.
Subject is a
Listed Company with 40% of the shares held by YKC and the rest by Financial
Institutions, the Indian Promoters, and the Public.
Subject has been
certified as an ISO-9001: 2000.
In the last 29 years, YIL has achieved the fastest growth rate in the Oil
Hydraulics Industry in the Country inspite of being the last entrant.
Today, most
manufacturers of Original Equipment have accepted YIL as their preferred
partners for hydraulics.
Seeing the need for high torque, low speed Hydraulic Motors, YIL started, in
1989, SAI INDIA LIMITED (SIL), a
joint venture with SAI Spa of
SAI Spa is the largest manufacturers of radial piston motors in the
World.
SIL has grown to become the preferred supplier of hydraulic motors to
all major OEM's in
The manufacturing facilities are located in Whitefield,
From a modest turnover of Rs.24 lakhs in 1978, YIL has grown to Rs.68 crores
year ending 2004-2005.
To ensure supply of high Quality Castings, YIL took over a running foundry in
Whitefield in 1986 and turned it around.
A Comprehensive range of Products offered by subject meets the total
requirement of the Industry.
Some of their major products are:
v Vane Pumps
v Piston Pumps
v Gear Pumps
v Direction Control Valves
v Pressure Control Valves
v Flow Control Valves
v Modular Valves
v Logic Valves
v Electro Proportional Valves
v Servo Valves
v Hydraulic Power Units
v Mobile Control Valves
v Pal Pumps
v Parison Controllers
v Actuators
v Accumulators
The diversification programme to improve
manufacturing capacity and increase supply of new Hi-tech products is underway.
Industries Served
In the last 25 years YIL has been serving almost all the major industrial
segments in the country.
A Partial list is given below:
- Steel Plants and Steel Mills
- Machine Tool Manufacturers
- Plastic Machinery Manufacturers
- Defence
- Automobile Manufacturers
- Material Handling Equipment Manufacturers
- Construction Machinery
- Hydraulic Presses
- Furnaces and Heat Treatment Plant Manufacturers
- Drill Rig Manufacturers
- Dam Hydraulics
- Power Projects
- Cement Industry
Subject has been awarded the ISO-9001:
2000 certification by RWTUV
for its manufacturing facilities
.
QUALITY POLICY
"They
will strive to meet customer's expectations by providing world-class hydraulic
products, components and services through total employee commitment and
continuous improvement"
C.P.Rangachar
Managing Director
Applications:
Subject has been trying to improve the lives of millions of
Indians and its neighboring countries through its contribution in Industrial
hydraulics. Whether it is a plastic container or a plastic toy, whether it is a
bicycle, a two wheeler, or the luxury of driving a car touches the lives of
all. Yuken
DIVE INTO HYDRAULICS
They at Yuken believe that Hydraulics is learnt only when one "dirties his hands" practically. Towards this end, SUBJECT runs a hydraulic school at different levels for its customers which provides hands-on experience and has been widely acclaimed by participants across the country
- Level one :
For Workmen / Supervisors (On request)
- Level
two : For Engineers / Supervisors (Basic).
- Level
three : Advanced Course.
- On Request: In-house
Programmes on Hydraulics
- Register On-Line
Subject has even provided training in various local languages.
Special programmes conducted by senior YIL staff at various industry forums like IMTMA, FPSI and educational institutions like IIT Madras on leakage prevention, noise and vibration reduction and low cost automation using hydraulics
Partial list of
organisations who have participated
- Bajaj Auto Limited.
- Beco Engineering
- Bhoruka Power Corporation
- Brakes India Limited.
- COFMOW
- HMT Limited.
- Hindustan Leaver Limited.
- Hero Honda Motors Limited.
- Honda Motorcycle and Scooter
- Lakshmi Machine Works Limited.
- Machine Tool Prototype Factory
- Mecon Limited.
- Maruti Udyog Limited.
- Ordnance Factories
- PL Haulwel Trailers
- Rico Auto Industries Limited.
- SKF Bearings India Limited.
- Sundaram Clayton Limited.
- Tata Motors Limited.
- TVS
- Wheels India Limited.
- Kennametal Widia India Limited.
International
Participants
- National
Water Supply and Drainage
- Loadstar
Private. Limited.,
- Protopline.,
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 :
Their
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.
Their 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.41.12 |
|
|
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.56.03 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
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 |
|