MIRA INFORM REPORT
|
Report
Date : |
01.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
HAZEL
MERCANTILE LIMITED |
|
|
|
|
Registered
Office : |
181, Ashoka Centre, 2nd Floor, G. T. Hospital
Complex, L. T. Road, Mumbai – 400 001, Maharashtra |
|
|
|
|
Country
: |
India |
|
|
|
|
Financials
(as on) : |
31.03.2006 |
|
|
|
|
Date
of Incorporation : |
16.10.1995 |
|
|
|
|
Com.
Reg. No.: |
11-93674 |
|
|
|
|
CIN
No.: [Company
Identification No.] |
L51900MH1995PLC093674 |
|
|
|
|
TAN
No.: [Tax
Deduction & Collection Account No.] |
MUMH05177E
/ MUMH04309E |
|
|
|
|
Legal
Form : |
A closely held public limited liability company |
|
|
|
|
Line
of Business : |
Merchants, traders, commission agents, buying agents,
selling agents, brokers, adapters,
buyers, sellers, importers, exporters and to trade and deal in goods,
gems & jewellery, produce articles and merchandise of any kind whatsoever
and without prejudice to the generality to the foregoing agricultural
commodities, food grains cash crops, cotton, tea, jute, coffee, fruit,
spices, vegetables, flowers, milk, milk products, meat, seeds, raw materials,
required by industries, semi finished products or industrial machinery
equipments, chemicals intermediates, electrical goods, black boards,
plywood’s, laminated sheets, textile yarns & fabrics, garments,
furniture, minerals ores and oils as wholesaler or retailers on the basis of
ready delivery or forward contact or on commission basis. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum
Credit Limit : |
USD
2000000 |
|
|
|
|
Status
: |
Satisfactory
|
|
|
|
|
Payment
Behaviour : |
Usually
Correct |
|
|
|
|
Litigation
: |
Clear |
|
|
|
|
Comments
: |
Subject is a
well-established trader. Directors are reported as experienced, respectable
and resourceful businessmen. Their trade relations are reported as fair.
General financial position is satisfactory. Payments are usually correct and
as per commitments. The company can be
considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
181,
Ashoka Centre, 2nd Floor, G. T. Hospital Complex, L. T. Road,
Mumbai – 400 001, Maharashtra, India |
|
Tel.
No.: |
91–22–2261
0282 (3 Lines) |
|
Fax
No.: |
91–22–262
0553 |
|
E-Mail
: |
indiafl@bom3.vsnl.net.in / corp@hmlindia.com / mktg@hmlindia.com |
|
Website
: |
|
|
Area : |
Leased |
|
|
|
|
Marketing
Office : |
1410,
Maker Chambers V, Nariman Point, Mumbai – 400 021, Maharashtra |
|
Tel.
No.: |
91-22-22832170
(5 Lines) |
|
Fax
No.: |
91-22-22821605 |
|
E-Mail
: |
|
|
|
|
|
Corporate
Office : |
701/712A,
Embassy Centre, Nariman Point, Mumbai
– 400 021, Maharashtra |
|
Tel.
No.: |
91-22-22824444
(12 Lines) |
|
Fax
No.: |
91-22-22041411
(Logistics)/2282 4440 (General) |
|
E-Mail
: |
|
|
Website
: |
|
|
|
|
|
Branches
: |
·
Delhi
·
Kolkata,
West Bengal ·
Visakhapatnam,
Andhra Pradesh ·
Gandhidham,
Gujarat |
DIRECTORS
|
Name : |
Mr. Nitin Kumar B. Didwania |
|
Designation
: |
Director |
|
Date of
Birth/Age : |
23rd
June 1974 |
|
Address
: |
172,
Kshitij, 47, Napean Sea Road, Mumbai – 400036, Maharashtra |
|
|
|
|
Name : |
Ms.
Sushmadevi D. Didwania |
|
Designation
: |
Director |
|
Date
of Birth/Age : |
30th
September 1955 |
|
Address
: |
172,
Kshitij, 47, Napean Sea Road, Mumbai – 400036, Maharashtra |
|
|
|
|
Name : |
Mr.
Vishal V. Sukhani |
|
Designation
: |
Director |
|
Date
of Birth/Age : |
15th
January 1976 |
|
Address
: |
Prakash
Bhavan, 3rd Floor, Thakurdwar, C.P.Tank, Mumbai, Maharashtra |
KEY EXECUTIVES
|
Name : |
Mr. A. T.
Khemchandani |
|
Designation
: |
Company
Secretary |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
|
Mr. Nitin
Kumar B. Didwania |
74,99,050 |
|
Mr.
Vishal Sukhani |
100 |
|
Ms.
Sushma Devi D. Didwania |
450 |
|
Mr. Ajay Jain |
100 |
|
Mr Yash
Gala |
100 |
|
Mr.
Saurabh Sanghavi |
100 |
|
Mr.
Sanjay Busa |
100 |
BUSINESS DETAILS
|
Line
of Business : |
Merchants, traders, commission agents, buying agents, selling agents, brokers,
adapters, buyers, sellers, importers,
exporters and to trade and deal in goods, gems & jewellery, produce
articles and merchandise of any kind whatsoever and without prejudice to the
generality to the foregoing agricultural commodities, food grains cash crops,
cotton, tea, jute, coffee, fruit, spices, vegetables, flowers, milk, milk
products, meat, seeds, raw materials, required by industries, semi finished
products or industrial machinery equipments, chemicals intermediates,
electrical goods, black boards, plywood’s, laminated sheets, textile yarns
& fabrics, garments, furniture, minerals ores and oils as wholesaler or
retailers on the basis of ready delivery or forward contact or on commission
basis. |
GENERAL INFORMATION
|
Suppliers
: |
·
Adnet
Technologies Private Limited ·
Balaji
Warehouse ·
Time
Network Express Service ·
United
Storage & Tank Terminal Limited ·
Kesar
Enterprises Limited ·
Essar
Refrigeration Company ·
Kamdar
Enterprises |
|
|
|
|
Customers
: |
·
Aarti
Drugs Limited ·
Ashok
Company ·
Aimco
Pesticides ·
B.
K. Oil & Solvents ·
Chetan
Overseas Private Limited ·
Climax
Trading Company ·
Bayer
India Limited ·
Deepanshu
Impex ·
Ion
Exchange (India) Limited ·
Kamal
Industry ·
Kejriwal
Paper Limited ·
J.
B. Khokhani & Company ·
Mahalaxmi
Dyes & Chemicals ·
Modi
Enterprises ·
Ransat
Services Limited ·
Ratanguru
Stainless International ·
R.
K. Enterprises ·
Sheetla
Maa Trading Company ·
Sum
Beam Trading Inc. ·
Thermax
Limited ·
Vam
Organic Chemicals Limited ·
Shree
Nealkanth Overseas ·
United
Phosphorus Limited |
|
|
|
|
No. of
Employees : |
70 |
|
|
|
|
Bankers
: |
Corporation
Bank, Mumbai UCO Bank,
Mumbai Union
Bank of India, Mumbai Federal
Bank, Mumbai Jankalyan
Sahakari Bank Limited, Mumbai Global
Trust Bank, Mumbai Punjab
National Bank, General J. Bhosale Marg, Nariman Point, Mumbai – 400 021,
Maharashtra (The
company enjoys overdraft facility from it’s bankers) State
Bank of India, Fort Branch, 214, D. N. Road, Mumbai – 400 001, Maharashtra |
|
|
|
|
Banking Relations : |
Satisfactory
|
|
|
|
|
Auditors
: |
Shabbir
S. Dagasrawala Chartered
Accountant Office
No. 8, 1st Floor, Narayan Niwas, 63, Aarey Road, Goregaon (West),
Mumbai – 400 062, Maharashtra Tel. No.
: 91-22-28739939 |
|
|
|
|
Associates
: |
·
Priceless
Investment Private Limited ·
Sanman
Trade Impex Private Limited No. 1-A, Shahnaz, 90, Napeansea Road, Mumbai, Maharashtra |
|
|
|
|
Parents
Company : |
India
Fintrade Limited - The company carries out its import activities through its affiliate
company i.e. subject company which is located in L. T. Road, a prime market
for trading of metals, industrial chemicals and petro-chemicals which enable
the company to have a feel of the market and be with it at all times. The company itself is open and is quite competent to trade
in all kinds of materials like specific, sensitive requirement of Government
sector and Public Sector Undertakings.
It has in the past provided service to specific technical requirements
of government organizations like Indian Navy / ONGC etc. |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
100,00,000 |
Equity Shares |
Rs.
10/- each |
Rs. 100.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
75,00,000 |
Equity shares |
Rs.
10/- each |
Rs. 75.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
75.000 |
75.000 |
75.000 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
482.600 |
362.800 |
263.700 |
|
NETWORTH
|
557.600 |
437.800 |
338.700 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
135.600 |
83.300 |
49.700 |
|
|
2]
Unsecured Loans |
34.400 |
10.600 |
14.000 |
|
TOTAL
BORROWING
|
170.000 |
93.900 |
63.700 |
|
|
DEFERRED
TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
727.600 |
531.700 |
402.400 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
134.600 |
6.200 |
7.600 |
|
Capital work-in-progress
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
INVESTMENT
|
1.700 |
1.200 |
1.100 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
400.700 |
309.600 |
217.600 |
|
|
Sundry Debtors
|
1170.200 |
878.000 |
629.200 |
|
|
Cash & Bank Balances
|
125.600 |
124.900 |
71.800 |
|
|
Loans & Advances
|
212.800 |
33.400 |
30.800 |
Total Current Assets
|
1909.300
|
1345.900 |
949.400 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
1309.300 |
815.900 |
552.600 |
|
|
Provisions
|
10.200 |
7.500 |
3.700 |
Total Current Liabilities
|
1319.500 |
823.400 |
556.300 |
|
Net
Current Assets
|
589.800 |
522.500 |
393.100 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
1.500 |
1.800 |
0.600 |
|
|
|
|
|
|
|
TOTAL
|
727.600 |
531.700 |
402.400 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
4108.000 |
2860.000 |
2211.500 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
141.800 |
103.300 |
87.400 |
Provision for Taxation
|
19.800 |
2.500 |
1.600 |
Profit/(Loss) After Tax
|
122.000 |
100.800 |
85.800 |
|
|
|
|
|
Export Value
|
N.A. |
N.A. |
456.768 |
|
|
|
|
|
Import Value
|
N.A. |
N.A. |
995.026 |
|
|
|
|
|
Total Expenditure
|
3966.200 |
2766.000 |
1247.756 |
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.27 |
0.20 |
0.37 |
|
Long Term Debt Equity Ratio |
0.27 |
0.20 |
0.37 |
|
Current Ratio |
1.52 |
1.66 |
1.87 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
54.60 |
359.01 |
209.13 |
|
Inventory |
11.28 |
10.83 |
11.49 |
|
Debtors |
3.91 |
3.79 |
3.88 |
|
Interest Cover Ratio |
3.99 |
3.19 |
5.72 |
|
Operating Profit Margin (%) |
4.76 |
5.33 |
4.90 |
|
Profit Before Interest and Tax Margin (%) |
4.73 |
5.27 |
4.80 |
|
Cash Profit Margin (%) |
3.08 |
3.59 |
3.98 |
|
Adjusted Net Profit Margin (%) |
3.05 |
3.53 |
3.89 |
|
Return on Capital Employed (%) |
30.14 |
32.29 |
26.21 |
|
Return on Net Worth (%) |
24.51 |
25.96 |
28.95 |
LOCAL AGENCY FURTHER INFORMATION
It’s
products range include :-
·
Mugs
·
Metals
·
Paper
·
Chamicals
·
Plastics
·
Pharma
·
Marine
During the year under the
report the company has registered itself with Kandla special economic zone
(KSEZ) and with software technology parts of India (STPI) so as to carter to
the overseas market in professional manner, using the infrastructure provided
by these special zones. By which success in marketing of software products
conceived and developed by the experienced and dedicated staff of the company
was possible.
Profile
Subject is a young, dynamic
multifaceted trading organisation based in Mumbai, the commercial capital of
India, dealing in a broad spectrum of products and services. Strong capital
backing, highly proficient risk management capabilities, aggressive business
development arms, the capacity to tap new emerging markets with relative ease
and a motivated reservoir of intellectual capital combine to give us an edge
over the competition. Drawing on our resources across industries, we are able
to integrate our expertise from different arenas to device otherwise elusive
solutions to customer requirements.
The company has
associated offices in Singapore, London and Dubai, as well as branch offices in
most Indian metropolises, each equipped with state of the art Management
Information Systems. With a highly motivated team of 120 professionals and with
storage & distribution facilities spread across the country, it strive to
service suppliers, dealers and customers with unparalleled efficacy.
The scope of Business covers :-
Imports :- Chemicals,
Petrochemicals, Polymers, Pharmaceuticals, Metals, Dyes & Dye
Intermediates.
Exports :- Paper & Its Auxiliaries, Chemicals & Ceramics
Manufacturing
:- Ceramic products, Chinaware & Paper Products.
Trade
Finance :- Structuring of trade debts, Securitisation.
New Ventures
With
the new world riding on the wave of Information Technology, we have gauged its
immense potential & have made an entry into this field by developing
database management software. Datamining Application tools & Business Intelligence
software for some clients in Singapore & India.
It
undertaken manufacturing of Pharmaceutical Products in a neighboring country.
The
company have made forays into specific areas of Infrastructure & are
involved in prestigious Government Contracts.
A
key area of growth over the last few years has been the import and distribution
of chemicals and petrochemicals, positioning amongst India's foremost market
makers.
The
cultivation of a close rapport with each of suppliers as well as customer base
has been instrumental to our growth, keeping us abreast of shifting supply
concerns as well as formulating a set of protocol to ensure that any and all
prevalent demand is met in a timely fashion.
Logistics
team is highly conversant in delivery time optimization, having considered
relevant factors such as costs, clearing, storage, distribution, etc.
The
company presently maintain two prime logistical hubs which are fully equipped
with state of the are storage terminals & warehousing facilities at Kandla,
Gujrat and Nhavasheva, Mumbai, to facilitate distribution.
The
company represent some of the global conglomerates for their distribution in
India. We regularly import from companies like ICC, IPCC, Sumitomo, Exxon
Mobil, Petrochem, SABIC, Itochu, OCI Corporation, Aekyung, Kolmar, PetroSA just
to name a few and distribute to leading Indian corporates & multinationals.
An
overview of the major products are deal in:-
|
CHEMICALS |
|
|
Alcohols |
ISO Propanol, N-Butanol, Iso Butanol,
Methanol, Ethanol-96 / 99.9%, 2-Ethyl Hexanol, Mossatanol L, 120 |
|
Chlorinated Solvents |
Methylene Chloride, Trichloroethylene,
Perchloroethylene |
|
Ethanolamines |
Monoethanolamine, Diethanolamine,
Triethanolamine-85% / 99.9% |
|
Esters |
Ethyl Acetate, Butly Acetate |
|
Glycols |
Mono-Ethylene, Di Ethylene |
|
Glycol Ethers |
Ethyl Glycol, Butyl Glycol |
|
Hydrocarbons |
Xylene, Toulene, Solvent Naphtha |
|
Ketones |
Acetone, MEK, MIBK, Cyclohexanone |
|
Monomers |
Butyl Acrylate, Styrene, Vinly Acetate |
|
Oleochemicals |
Fatty acids, Glycerine, Straric Acids &
Rubber Grade |
|
Plasticizers |
Di Butyl Pthalate, Di Octyl Phthalate |
|
Other Chemicals |
Phthalic Anhydride, Maleic Anhydride, Acetic
Acid, Pentaerythritol, Phenol, Titanium Dioxide, Paraffin Wax, Dyes & Dye
Intermediates. |
|
METALS |
|
|
Non Ferrous |
Copper, Nickel, Tin, Aluminium, Zinc, Lead. |
|
Ferrous |
HMS I/II, CR/HR Coils, H/I Beam, Rails,
Stainless Steel, etc. |
|
POLYMERS |
|
HDPE,
LDPE, LLDPE, HIPS, GPPS, PP, PVC, ABS |
|
PAPER |
|
Hardwood Pulp, Softwood Pulp, Coated Paper
& Board, Inkjet Paper, Copier Paper. |
CERAMICS:
The company supply premium quality Chinaware Dinnerware & Ceramic Giftware
items manufactured in an ISO 9002 certified manufacturing facilities and
are amongst the largest exports of Ceramic Mugs & Dinnerware from India.
The company also deal in Ceramic Tiles and sanitary Ware. It’s products are FDA
approved & find acceptance in UK, Middle East, Asia and Australia &
South Africa.
Trade Finance
The financial services
division, India Fintrade Limited (IFL), is committed to the facilitation of
trade through its affiliations which include major respectable banks and other
financial institutions (both in India and overseas.)FL offers structured trade
finance in the form of commercial and term borrowing backed by supply/purchase
of goods, factoring and securitizing receivables, advances against assured
performance amongst other services. Today, we are among the leading players in
structured finance in India.
Emerging Market
India, with its inherent
qualities & a rapidly growing economy, has become one of the fastest
emerging markets in the world. Due to its low cost manufacturing &
excellent quality of products, India has become an ideal sourcing base and with
all the major corporate worldwide wanting to ser up operations here, it is one
of the most promising markets of the future.
Subject, with its vast
exposure & excellent infrastructure, is currently sourcing for some of the
biggest names in the Chemical, Petrochemical & Paper Industry worldwide
& provides a platform
The company's fixed assets of
important value include air conditioner, camera, computer, fax machine, furniture
& fixtures, motor car, television set, xerox machine and motor cycle.
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.44.11 |
|
UK Pound |
1 |
Rs.86.79 |
|
Euro |
1 |
Rs.57.44 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP
CAPITAL |
1~10 |
7 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--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 |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
52 |
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 |
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 |