MIRA INFORM REPORT
|
Report
Date : |
05.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
PHEONIX LAMPS INDIA LIMITED |
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Formerly
Known As: |
PHOENIX LAMPS LIMITED |
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Registered
Office : |
59-A, Noida Special Economic Zone, Noida Phase – II,
District Gautam Budh Nagar - 201305, Uttar Pradesh |
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Country
: |
India |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
26.03.1991 |
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Com.
Reg. No.: |
20-12944 |
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CIN
No.: [Company
Identification No.] |
L31500UP1991PLC012944 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
MRTP00549D |
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Legal
Form : |
It is a
public limited liability company. The
company’s shares are listed on the Stock Exchanges. |
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Line
of Business : |
The company is engaged in manufacturing and exporting of
halogen automotive lamps and compact fluorescent lamps. It is also engaged in private labeling for
several world renowned lighting companies. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
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
3000000 |
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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 has improved its performance in 2004 – 05.
Directors are reported as experienced, respectable and resourceful
industrialists. Their trade relations are fair. 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
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Registered
Office/Factory : |
59-A, Noida Special Economic Zone, Noida Phase – II,
District Gautam Budh Nagar - 201305, Uttar Pradesh, India |
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Tel.
No.: |
91-120-2562952-57/4012222 |
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Fax
No.: |
91-120-2562943/26843949 |
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E-Mail
: |
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Website
: |
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Factory
: |
A – 1,
Noida Phase – II, District Gautam Budh Nagar – 201305, Uttar Pradesh, India C – 8
Selaqui Industrial Area, District Dehradun, Uttaranchal 59 – D,
Noida Special Economic Zone, Noida Phase – II, District Gautam Budh Nagar –
201305, Uttar Pradesh |
DIRECTORS
|
Name : |
Shri B.K. Gupta |
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Designation
: |
Chairman |
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Age: |
70 Years |
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Qualification: |
Graduate |
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Experience: |
46 Years |
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Last
Employment: |
Industrialist |
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Name : |
Shri H.R. Gupta |
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Designation
: |
Managing Director |
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Age : |
46 Years |
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Qualification
: |
B.B.A. Canada |
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Experience
: |
22 Years |
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Last
Employment: |
Industrialist |
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Name : |
Shri Sudesh Yadav |
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Designation
: |
IDBI Nominee Director |
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Name : |
Shri K.Mohan Ram Pai |
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Designation
: |
Director |
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Name : |
Shri Anil Sharma |
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Designation
: |
Director |
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Name : |
Shri A. K. Agarwal |
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Designation
: |
Whole Time Director |
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Age : |
56 Years |
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Qualification
: |
C.A. |
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Experience
: |
35 Years |
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Last
Employment: |
Halonix Electric Private Limited |
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Name : |
Mr. G S Vohra |
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Designation
: |
Executive Director |
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Age: |
56 Years |
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Qualification
: |
C.A. |
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Experience
: |
32 Years |
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Last
Employment: |
Delhi Botling Company Limited |
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Name: |
Mr. P. C. Chaturvedi |
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Designation: |
Director |
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Name: |
Mr. C. D. Ghosh |
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Designation: |
Director |
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Name: |
Mr. C. A. Venkateshwaran |
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Designation: |
Director |
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Name: |
Mr. Anil Sharma |
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Designation: |
Director |
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Other
Personnel: |
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Name: |
Mr. A. K. Mittal |
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Designation: |
Company Secretary |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Promoters
|
8852333 |
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Foreign
Collaborators |
1880000 |
Institutional Investors Mutual Funds
& UTI
|
2103706 |
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Banks,
Financial Institutions and Insurance Companies |
3200 |
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FIIs |
941840 |
Private Corporate Bodies
|
2240373 |
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Indian
Public |
7706318 |
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NRIs/
OCBs |
121530 |
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TOTAL |
23849300 |
BUSINESS DETAILS
|
Line
of Business : |
The company is engaged in manufacturing and exporting of
halogen automotive lamps and compact fluorescent lamps. It is also engaged in private labeling for
several world renowned lighting companies. |
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Products
: |
Ř
Halogen
Auto Lamps Ř
General
Lighting Ř
Electric
Lamps |
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Brand
Names : |
"HALONIX" |
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Exports
to : |
European
Countries, Japan, South Korea, Brazil, Australia, South Africa, Middle East,
South East Asia, North and South American Countries |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Electric
Lamps |
Pcs. |
N.A. |
89436 |
6688 |
GENERAL INFORMATION
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No. of
Employees : |
1770 |
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Bankers
: |
Ř
Corporation
Bank, M 41, Connaught Circus, Delhi - 110 001 Ř
Canara
Bank, Industrial Finance Branch, 11th Floor, World Trade Tower,
Delhi - 110 001 Ř
Indian
Bank, South Extension I, Delhi - 110 048 |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors
: |
Arun K.
Gupta & Associates Chartered
Accountants |
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Address: |
D-58,
East to Kailash, New Delhi – 110 065, India |
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Internal
Auditors: |
Ernst And Young Chartered Accountants |
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Address: |
B-26, Qutab Institutional Area, New Delhi 110016 |
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Subsidiaries
: |
Phoenix Tri-Continental Hotels Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
41000000 |
Equity Shares |
Rs. 10/- each |
Rs. 410.000 millions |
|
2900000 |
Redeemable Preference Shares |
Rs. 100/- each |
Rs. 290.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
23849300 |
Equity Shares |
Rs. 10/- each |
Rs. 238.493 millions |
|
974500 |
7.50% Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 97.450 millions |
|
1316000 |
Redeemable Preference Shares |
Rs. 100/- each |
Rs. 131.600 millions |
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TOTAL |
|
Rs. 467.543 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 |
467.543 |
478.793 |
478.793 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3]
Reserves & Surplus |
315.845 |
136.701 |
61.461 |
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4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
783.388 |
615.494 |
540.254 |
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LOAN
FUNDS |
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1]
Secured Loans |
557.837 |
626.152 |
507.265 |
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2]
Unsecured Loans |
250.000 |
58.881 |
60.363 |
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TOTAL
BORROWING
|
807.837 |
685.033 |
567.628 |
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DEFERRED
TAX LIABILITIES |
85.202 |
112.591 |
134.346 |
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TOTAL
|
1676.427 |
1413.118 |
1242.228 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
859.630 |
881.713 |
898.133 |
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Capital work-in-progress
|
0.000 |
0.000 |
0.000 |
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INVESTMENT
|
0.520 |
0.020 |
0.020 |
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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
|
422.750 |
388.729 |
388.729 |
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Sundry Debtors
|
431.005 |
318.612 |
242.266 |
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Cash & Bank Balances
|
130.391 |
12.649 |
12.649 |
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Other Current Assets
|
6.464 |
4.129 |
0.000 |
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Loans & Advances
|
26.713 |
35.714 |
39.843 |
Total Current Assets
|
1017.323 |
759.833 |
559.300 |
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Less : CURRENT LIABILITIES & PROVISIONS
|
|
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Current Liabilities
|
201.046 |
228.448 |
228.448 |
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Provisions
|
0.000 |
0.000 |
0.000 |
Total Current Liabilities
|
201.046 |
228.448 |
215.225 |
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Net
Current Assets
|
816.277 |
531.385 |
344.075 |
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
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TOTAL
|
1676.427 |
1413.118 |
1242.228 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
2393.911 |
1982.409 |
1502.980 |
|
|
|
|
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Profit/(Loss) Before Tax
|
238.517 |
170.273 |
133.386 |
Provision for Taxation
|
[11.245] |
47.000 |
40.238 |
Profit/(Loss) After Tax
|
249.762 |
123.273 |
93.148 |
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|
|
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Export Value
|
924.378 |
1008.236 |
0.898 |
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Import Value
|
742.786 |
893.724 |
0.595 |
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|
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Total Expenditure
|
2155.394 |
1812.135 |
1369.590 |
QUARTERLY
|
PARTICULARS |
30.06.2006 [1st Qtr.] |
30.09.2006 [2nd Qtr.] |
31.12.2006 [3rd Qtr.] |
|
Sales
Turnover |
617.100 |
727.100 |
760.600 |
|
Other
Income |
7.500 |
6.000 |
7.200 |
|
Total Income |
624.600 |
733.100 |
767.800 |
|
Total
Expenditure |
527.900 |
603.300 |
634.800 |
|
Operating
Profit |
96.700 |
129.800 |
133.000 |
|
Interest |
18.700 |
19.300 |
17.400 |
|
Gross
Profit |
78.000 |
110.500 |
115.600 |
|
Depreciation |
24.900 |
24.200 |
31.000 |
|
Tax |
9.300 |
10.600 |
4.600 |
|
Reported
PAT |
54.700 |
82.600 |
80.000 |
Notes :
2006-06 Quarter 1
Expenditure includes [increase]/ decrease in stock Rs.
[22.500] million consumption of raw material Rs. 355.052 million staff cost Rs.
56.779 million, other expenditure Rs. 127.051 million, Tax includes Provision
for Current Tax Rs. 7.500 million Deferred Tax Rs. [10.950] million Fringe
Benefits Tax Rs. 1.200 million earlier period tax Rs. 0.648 million EPS is
basic & diluted Status of Investor Complaints for the quarter ended June
30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter 15 Complaints disposed off during the quarter 15
Complaints unresolved at the end of the quarter Nil. 1. The above results have
been taken on record by Board of Directors at their Meeting held on July 29,
2006. 2. The company has made Private
Placement of 4170000 warrants at Rs. 102/- per warrant on July 03, 2006 to
Argon India Limited, Mauritius and Argon South Asia Limited, Mauritius
[affiliates of Actis India Fund 2 LP and Actis South Asia Fund 2 LP], each warrant
convertible into one Equity Share of Rs. 10/- each at a premium of Rs. 92/- per
share further Mr. B. K. Gupta the main promoter and his family members have
also entered into an agreement with these entities for sale of their entire
share holding in the company i.e. 8735727 equity shares for Rs. 152/- per share
and for payment of non-compete consideration of Rs. 38/- per share. Argon India Limited, Mauritius and Argon
South Asia Limited, Mauritius are also making an open offer for acquiring
5603860 equity share at Rs. 152/- per share from public as per the requirements
of SEBI Takeover Regulations. 3.
Company operates into single business segment, namely Electrical Lamps. Therefore, the information pursuant to AS –
17 is not applicable. Figures have been
regrouped / recast wherever necessary to facilitate comparison.
2006-09 Quarter 2
The above results have been taken on record by Board of
Directors at their Meetings held on 31st October, 2006. Argon India Limited, Mauritius and Argon
South Asia Limited, Mauritius [nominees of Actis India Fund 2 LP and Actis
South Asia Fund 2 LP] are in the process of making an open offer for acquiring
5603860 equity shares at Rs. 152/- per share from public as per the
requirements of SEBI take over regulations.
SEBI approval is awaited for the same.
The company did not have any Investor Complaints pending at the
beginning of the Quarter. 18 complaints
were received and resolved during the quarter and hence there are no complaints
lying unresolved at the end of quarter on 30th September, 2006. 4. Company operates into single business
segment, namely Electrical Lamps.
Therefore, the information pursuant to AS – 17 is not applicable. Figures have been regrouped / recast
wherever necessary to facilitate comparison.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
1.07 |
1.08 |
1.17 |
|
Long Term Debt Equity Ratio |
0.50 |
0.81 |
1.05 |
|
Current Ratio |
1.23 |
1.28 |
1.36 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.25 |
1.11 |
0.97 |
|
Inventory |
6.05 |
6.22 |
6.56 |
|
Debtors |
6.55 |
7.27 |
7.58 |
|
Interest Cover Ratio |
4.61 |
3.24 |
2.86 |
|
Operating Profit Margin (%) |
18.77 |
19.33 |
21.30 |
|
Profit Before Interest and Tax Margin (%) |
12.94 |
12.01 |
12.59 |
|
Cash Profit Margin (%) |
15.57 |
13.40 |
14.43 |
|
Adjusted Net Profit Margin (%) |
9.74 |
6.08 |
5.72 |
|
Return on Capital Employed (%) |
21.95 |
20.23 |
18.07 |
|
Return on Net Worth (%) |
49.83 |
34.54 |
28.74 |
STOCK PRICES
|
Face
Value |
Rs.10/-
each |
|
High |
Rs.164.30/- |
|
Low |
Rs.159.05/- |
LOCAL AGENCY FURTHER INFORMATION
BIODATA
The
company is a 100% EOU with a state-of-the-art plant in Noida, to manufacture
halogen lamps (cap : 11.880 millions pa) and compact fluorescent lamps (cap :
9.504 millions pa). The company's products include automobile head lamps under
the Halonix brand, H3 type halogen lamps for fog lamps, J-type halogen lamps
for general lighting applications, compact fluorescent lamps (single/double
H-type), etc.
The company has been certified as an ISO-9002 accredited company by RWTUV,
Germany, for quality assurance in production and installation. It has also
received the E-4 mark from N V Kema, Holland, for its H-4 halogen lamps.
During 1996-97, Phoenix Electric (India) Limited (PEIL), a group company has
amalgamated with the Phoenix Lamps India Limited
During the year 1999-2000, as per the Scheme of Arrangement, the company
repurchased 1.1 millions equity shares of Rs. 10/- each from PICUP and
extinguished the same and converted 7.660 millions equity shares of Rs 10/-
each held by Pheonix Electric Company Limited, Japan into 76.6 millions
Redeemable Preference shares of Rs. 100/- each.
The company has changed its name from Phoenix Lamps Limited to the present
name.
Generic
Name of the Principal Product of Company (As per monetary terms) is as under :
Item Code No. (ITC Code) : 853921
Product Description : Electric
Lamps
FINANCIAL AND OPERATIONAL PERFORMANCE
On operational front Gross Sales grew by 22% from Rs.
2042.50 millions in 2004-05 to Rs. 2486.80 million in 2005-06. Net profit witnessed an increase of about
94% at Rs. 238.88 million from Rs. 123.27 millions last year. The continuous improvement in performance of
the company could mainly be attributed to healthy growth of automobile sector,
higher capacity utilization, ongoing emphasis on productivity and efficiency,
improvement in all areas of operations.
Cost control measures and actions for sustainable growth will further
enable the company to consolidate its financial position in near future.
During the year, the company has redeemed preference shares
of Rs. 11.25 millions held by IDBI.
COMMERCIAL PRODUCTION FROM SEZ Unit – II
The company has commenced commercial production from its new
manufacturing facility established at SEZ, Noida w.e.f. 1st April,
2005. This SEZ Unit – II has been set
up with an installed capacity of 13.39 million lamps. Since this unit enjoys Income Tax Exemption, it would provide
competitive edge and ample growth opportunities for the company.
INDUSTRY STRUCTURE AND DEVELOPMENT
The company enjoys the status of Market Leader in automotive
Halogen Lamp segment in India with supplies to all major OEMs. Continued growth in automotive segment with
increasing demand from replacement market, resulted in over 15% growth in
automotive lamps segment.
The company is also leading player in Compact Fluorescent
Lamps and other General Lighting Halogen Lamps. In case of General Lighting Lamps a rapid shift is taking place
from Ordinary Incandscent Lamps to energy efficient Compact Fluorescent Lamps
[CFLs]. The company recorded a growth
of over 25% in this segment. CFLs will
be the main growth driver of the company in next couple of years.
OPPORTUNITIES AND THREATS
Opportunities
- Introduction of new products for enhancement in revenue
model,
- Stringent focus on cost management to remain competitive
and enhance operating margins. All
employees are involved in various cost re-engineering projects.
- Setting up of a new Unit at Haridwar, Uttaranchal which
would enjoy 100% excise exemption for 10 years and 100% income tax exemption
for 5 years followed by 30% income tax exemption for next 5 years will give a
competitive edge to the company over its rivals.
Threats
- Increase in metal prices all over the world may impact the
profitability
- The industry has to be on guard against the menace of
Counterfeits which has increased over the last few years, inspite of serious
efforts to check it.
OUTLOOK
Indian economy seems to grow at 9% supported by smart growth
in manufacturing and service sector.
Overall, the demand outlook is quite positive. Compact Fluorescent Lamp shall witness exponential growth in the
near future.
FINANCIAL PERFORMANCE VIS-Ŕ-VIS Operational Performance
All round cost cutting measures have yielded satisfactory
results towards healthy bottom line.
Gross turnover at Rs. 2486.80 million recorded a growth of 22%. Net profit at Rs. 238.88 million recorded an
impressive growth of about 94%. In view
of improving financial results and positive outlook for the near future, the
company has declared Equity Dividend of 20% for the financial year 2005-06.
FIXED ASSETS
The company’s fixed assets of important value include land,
building, plant and machinery, laboratory equipment, gas cylinder, furniture
& fixture, office equipment, computer, vehicle and fire fighting equipment.
WEBSITE DETAILS
Phoenix Lamps Limited, an Indo
Japanese Joint Venture, promoted in 1991 in Noida, about 45 minutes away from
the International airport of New Delhi.
The Company has
set-up fully automatic state-of-the-art manufacturing facilities for
Automobiles Halogen lamps, Halogen lamps for General Lighting and Compact
Fluorescent Lamps.
With a total Investment for over US$30 million and having
ISO 9001, QS 9000 and TS 16949 certificate under its belt, its units have a
massive productions infrastructure, setup over three different locations, which
can annually deliver over 80 millions lamps benchmarked to international
regulations for Quality, Performance and Safety.
Offering an extensive range of over 500 different types of
products to suit varied customers needs and applications. The current customers
base ranges from aftermarket buyers to OE manufactures and also includes
reputed international brands.
The company believes in long-term business relationship with
its customers by ensuring the best services, competitively priced international
-quality products, prompt delivery and personalized services.
Policy
They at Phoenix Lamps Limited are committed to
provide consistent quality products to their customers worldwide.
For the achievement of world class quality in the products manufactured, It is
necessary that every employee is involved in ensuring and improving quality Of
products at all times.
The Management On Its Part Is Fully Committed To Quality And Provides All
Resources To Accomplish This Task.
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.44.13 |
|
UK Pound |
1 |
Rs.86.46 |
|
Euro |
1 |
Rs.56.99 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
7 |
|
OPERATING
SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT
LINES |
1~10 |
7 |
|
--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 |
|
59 |
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 |