MIRA INFORM REPORT
|
Report
Date : |
06.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
NEEL METAL PRODUCTS LIMITED |
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Registered
Office : |
Neel
House, Lado Sarai, Opposite Qutab Minar, New Delhi - 110030 |
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Country
: |
India |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
04.04.1997 |
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Com.
Reg. No.: |
55-86432 |
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CIN
No.: [Company
Identification No.] |
U74899DL1997PTC086432 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
RTKN00867G |
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Legal
Form : |
Closely
Held Public Limited Liability Company. |
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Line
of Business : |
Manufacturer
of sheet metal components, assemblies, sub assemblies and blanks. |
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 |
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Maximum
Credit Limit : |
USD
1750000 |
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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, respectable and
having satisfactory means of their own. Their trade relations are fair.
Payments are usually correct and as
per commitments. The company can be considered good for normal business
dealings at usual trade terms and conditions |
LOCATIONS
|
Registered
Office : |
Neel
House, Lado Sarai, Opp. Qutab Minar, New Delhi - 110030 |
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Tel.
No.: |
91-11-29522570 |
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Fax
No.: |
91-11-29521512 |
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E-Mail
: |
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Website
: |
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Location : |
Owned |
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|
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Factory
1 : |
Mohammadpur, Jharsa, Sector 36, Near Khandsa Village,
Gurgaon- 122001, Haryana |
|
Tel.
No.: |
91-124-5032011/13 |
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Fax
No.: |
91-124-2370987 |
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Location : |
Owned |
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|
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Factory
2 : |
Plot No. 268, Secuter – 24, Faridabad – 121005 |
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Tel.
No.: |
91-129-5067013 |
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Fax
No.: |
91-129-5067012 |
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Location : |
Owned |
DIRECTORS
|
Name : |
Mr.
Surendra Kumar Arya |
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Designation
: |
Director |
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Address
: |
W – 101, Greater Kailash, Part – II, New Delhi – 110048,
India |
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Date
of Birth/Age : |
10.11.1957 |
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Date
of Appointment : |
01.05.2002 |
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E-mail
: |
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Name : |
Mr.
Prashesh Arya |
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Designation
: |
Director |
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Address
: |
B – 98,
Arya Sadan, South City, Phase – II, Gurgaon, Haryana |
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Date
of Birth/Age : |
05.03.1961 |
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Date
of Appointment : |
04.04.1997 |
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E-mail
: |
parya@jbm.co.in |
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|
|
|
Name : |
Mr. Hans
Raj Saini |
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Designation
: |
Director |
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Address
: |
Kothi No. 160, Sector 14, Faridabad – 121005, Haryana |
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Date
of Birth/Age : |
01.03.1938 |
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Date
of Appointment : |
01.04.2001 |
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|
|
|
Name : |
Mr. Vivek
Gupta |
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Designation
: |
Director |
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Address
: |
House No.
599 /A, Patel Nagar, Gurgaon, Haryana |
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Date
of Birth/Age : |
15.06.1969 |
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Date
of Appointment : |
01.04.2001 |
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Name : |
Mr. Nishhant Arya |
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Designation
: |
Director |
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Address
: |
W – 101, Greater Kailash, Part – II, New Delhi – 110048,
India |
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Date
of Birth/Age : |
01.11.1986 |
|
Date
of Appointment : |
04.06.2005 |
|
E-mail
: |
nishant@jbm.co.in |
KEY EXECUTIVES
|
Name : |
Mr. Vivek
Gupta |
|
Designation
: |
Company
Secretary |
|
Address
: |
House No.
599/A, Patel Nagar, Gurgaon – 122001, Haryana |
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Date
of Birth/Age : |
15.06.1969 |
|
Date
of Appointment : |
01.04.2001 |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
|
Mr.
Nishthakar Arya |
100 |
|
Mr.
Prasahesh Arya |
100 |
|
SMC
Credits Limited |
143000 |
|
A to Z
Securities Limited |
75000 |
|
Shuklambar
Exports Limited |
250000 |
|
Valour
Construction Limited |
440000 |
|
Focal
Leasing & Credits Limited |
60000 |
|
Mr.
Surendra Kumar Arya |
3000 |
|
ANS
Holding Private Limited |
4000 |
|
JFE Steel
Corporation |
100000 |
|
Metal One
Corporation |
50000 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturer
of sheet metal components, assemblies, sub assemblies and blanks. |
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|
|
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Products
: |
Steel Blanks Rims Mufflers Welding Fixtures Tubes Sheet Metal Components |
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|
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Exports
to : |
Japan |
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Imports
from : |
Japan, Korea |
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Terms
: |
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Purchasing : |
Credit |
GENERAL INFORMATION
|
Suppliers
: |
·
Allied
Ferro Industries ·
Leo
Fasteners ·
Indus
Forms Private Limited |
|
|
|
|
Customers
: |
OEM’s |
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|
|
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Bankers
: |
v
Canara
Bank, Parliament Street, New Delhi – 110001 v
Syndicate
Bank, New Delhi v
Standard
Chartered Bank, Narain Manzil, 23, Barakhamba Road, New Delhi - 110001 v
ICICI
Bank Limited, New Delhi v
ABN
Amro Bank N. V., Hansalaya Building, 15, Barkhamba Road, New Delhi – 110001 |
|
|
|
|
Banking Relations : |
Satisfactory |
|
|
|
|
Auditors
: |
Sahni
Natarajan and Bahl Chartered Accountants |
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Address
: |
303,
Mansarovar, 90 Nehru Place, New Delhi – 110019 |
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Tel.
No.: |
91-11-26484835
/ 26434959 |
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Fax
No.: |
91-11-26485081 |
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E-Mail
: |
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Associates
: |
Jay Bharat Maruti Limited Neel House, Lado Sari, No. 30, Line of Business : Sheet Metal Components JBM Auto Components Limited Neel House, Lado Sari, No. 30, Line of Business : Sheet Metal Components & Toolroom
Facilities |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
1200000 |
Equity Shares |
Rs. 10/- each |
Rs. 12.000 millions |
|
200000 |
Preference Shares |
Rs. 10/- each |
Rs. 20.000 millions |
|
|
TOTAL |
|
Rs. 32.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
2475200 |
Equity Shares |
Rs. 10/- Each |
Rs. 24.752 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 |
24.752 |
24.800 |
24.800 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
411.888 |
223.500 |
172.500 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
436.640 |
248.300 |
197.300 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
533.528 |
311.400 |
38.300 |
|
|
2]
Unsecured Loans |
119.424 |
97.600 |
0.000 |
|
TOTAL
BORROWING
|
652.952 |
409.000 |
38.300 |
|
|
DEFERRED
TAX LIABILITIES |
80.774 |
30.900 |
23.500 |
|
|
|
|
|
|
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TOTAL
|
1170.366 |
688.200 |
259.100 |
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|
|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
743.588 |
524.900 |
292.000 |
|
Capital work-in-progress
|
351.258 |
46.100 |
9.600 |
|
|
|
|
|
|
|
INVESTMENT
|
0.000 |
0.000 |
0.000 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
262.595
|
259.900
|
146.300 |
|
|
Sundry Debtors
|
276.105
|
159.800
|
63.200 |
|
|
Cash & Bank Balances
|
10.305
|
31.900
|
17.000 |
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances
|
98.365
|
65.500
|
51.500 |
Total Current Assets
|
647.370 |
517.100 |
278.000 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
554.315
|
372.600
|
313.100 |
|
|
Provisions
|
17.535
|
27.300
|
7.400 |
Total Current Liabilities
|
571.850 |
399.900 |
320.500 |
|
Net
Current Assets
|
75.520 |
117.200 |
(42.500) |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
1170.366 |
688.200 |
259.100 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
|
2164.100 |
1129.900 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
|
N.A |
NA |
Provision for Taxation
|
|
N.A. |
N.A. |
Profit/(Loss) After Tax
|
|
N.A. |
N.A. |
|
|
|
|
|
Import Value
|
|
N.A. |
N.A. |
|
|
|
|
|
Total Expenditure
|
|
N.A. |
N.A. |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
Debt Equity Ratio
(Total
Liability/Networth) |
|
2.80
|
3.25 |
1.81 |
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
1.13
|
1.29 |
0.86 |
LOCAL AGENCY FURTHER INFORMATION
Form 8
Particular for creation or modification of charges
|
Corporation identity number or foreign company
registrations number of the company |
U74899DL1997PTC086432 |
|
Name of the company |
NEEL
METAL PRODUCTS LIMITED |
|
Address |
Neel
House, Lado Sarai, Opposite Qutab Minar, New Delhi – 110030 |
|
This Form is for |
Modification of charge |
|
Type of Charges |
Hypothecation |
|
Particular of the charge holder |
Canara Bank, Parliament Street, New Delhi – 110001 |
|
Amount Secure by the charge |
Rs. 26.000 millions |
|
Description of the property charge whether it is a charge
on |
Plant and machinery, Stock in trade, Book debts and others If others, specify : Goods and Commodities Particulars of the property charged [including location of
the property] Goods and Commodities EMT of land and building & P |
|
Modification charge Charge identification number of the charge to be modified |
90062624 |
|
Brief description of the instrument modifying the charge
under section 135 |
Agreement regarding collateral security machinery vehicles
and letd. |
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Date of instrument modifying the charge |
06.02.2006 |
|
Particulars of the present modification |
Extent operation of charge ILC / FLC limit of Rs. 140
millions is secured by EMT of Khasra No. 9/171, 114/2, 15, 16, 17, 24 and 25
Mahmad Pur, Gurgoan [And all fixed assets of the company |
|
Name
of the company |
Neel
Metal Products Limited |
|
Presented By |
Company & Standard Chartered Bank |
|
1) Date
and description of instrument creating the change |
Agreement
of hypothecation of plant and machinery dated 27.07.2004 |
|
2) Amount
secured by the charge/amount owing on the securities of charge |
USD
1500000 |
|
3) Short
particular of the property charged. If the property acquired is subject to
charge, date of the acquired of the property should be given |
Hypothecation
by way of first pari passu charge over the whole of the fixed assets of the
borrower situated at Mohammadpur Jharsa, Sector – 36, Gurgaon, Haryana
including its movable plant and machinery, machinery spares, tools and
accessories and other movables, both present and future whether installed or
not and whether now lying loose or in cases or which are now lying or stored
in or open or shall hereafter from time to time during the continuance of the
security of these present be brought into and or upon or to be stored or to
be in or about all the borrowers factories, premises and godown situated at
Mohammadpur Jharsa, Sector – 36, Gurgaon, Haryana or whereverelse the same
will be or shall be held any party to the order or disposition of the
borrowers or in the course of transit or on high seas or on order or delivery
howsoever and wheresoever in the possession of the borrowers |
|
4) Gist
of the terms and conditions and extent and operation of the charge. |
Repayable in three equal annual installments, first
installment being due at the end of second year from the date of first
drawdown, the second installment at the end of 3rd year from the
date of first drawdown and final installment at the end of 4th
year from the date of first drawdown. Pricing : 6 months USD LIBOR + 200 bps p.a. commencing
from the date of first drawdown. Interest would be payable every 3 months Pricing above excludes the cost of hedge Asset Coverage 2 times |
|
5) Name
and Address and description of the person entitled to the charge. |
Standard Chartered Bank Sansad Marg, New Delhi |
|
6)
Date and brief description of
instrument modifying the charge |
No
instrument was executed, Memorandum of entry dated 27th July, 2004
evidencing deposit of title deeds with Canara Bank, Sansad Marg, New Delhi |
|
7)
Particulars of modifications specifying the terms and conditions or the
extent of operations of the charge in which modification is made and the
details of the modification. |
Term loan
of US Dollar 1500000 together with interest, costs, expenses and charges etc.
shall also be further secured by first pari passu charge by equitable
mortgage by deposit of title deeds in respect of the company’s immovable
property situated at Mohammadpur Jharsa, Sector – 36, Gurgaon, Haryana more
particularly described in the annexure attached |
|
Name
of the company |
Neel
Metal Products Limited |
||||||||||||
|
Presented By |
Standard Chartered Bank, New Delhi and Company |
||||||||||||
|
1) Date
and description of instrument creating the change |
Agreement
of hypothecation of stocks and book debts dated 08.12.2004 registered on
10.12.204 |
||||||||||||
|
2) Amount
secured by the charge/amount owing on the securities of charge |
Rs.
100.000 millions |
||||||||||||
|
3) Short
particular of the property charged. If the property acquired is subject to
charge, date of the acquired of the property should be given |
All the
stock in trade both present and future consisting of raw materials, finished
goods, goods in process of manufacturing and other merchandise whatsoever,
being movable properties nor or at any time hereafter belonging to the
borrower or at the borrowers disposal and now or at any time and from time to
time hereafter stored or to be stored or brought into or upon or in course of
transit to the borrowers factory or premises or at any other place whatsoever
and wheresoever in the borrowers possession or occupation or at any other
premises or place [all of which herein after collectively referred to as ‘the
said goods’] shall be hypothecated to the bank by way of pari passu first
charge basis All the
present and future book debts, outstandings, moneys receivables, claims and
bills which are now due and owing or which may at any time hereafter during
the continuance of this security become due and owing to the borrower in the
course of its business by any person, firm, company or body corporate or by the
Government Department or office or any Municipal or Local or Public or Semi
Government body or authority or any body corporate or undertaking or project
whatever in the public sector [all of which herein after collectively
referred to as ‘the said debts’], shall be hypothecated to the bank by way of
pari passu first charge basis |
||||||||||||
|
4) Gist
of the terms and conditions and extent and operation of the charge. |
Interest as may be determined by the bank from time to
time |
||||||||||||
|
5) Name
and Address and description of the person entitled to the charge. |
Standard Chartered Bank Sansad Marg, New Delhi |
||||||||||||
|
6)
Date and brief description of
instrument modifying the charge |
Supplementary
agreement of hypothecation of stocks and book debts dated 18.01.2005 |
||||||||||||
|
7)
Particulars of modifications specifying the terms and conditions or the
extent of operations of the charge in which modification is made and the
details of the modification. |
There
being no change in the overall limit of Rs. 100 millions but the charge is
being modified to cover the buyers credit facility along with fund based and
non fund based limits and shall continue to be secured by first charge over
stocks and book debts of the company both present and future
Other
terms and conditions remains the same. |
|
Name
of the company |
Neel
Metal Products Limited |
|
Presented By |
Canara Bank,
Parliament Street, New Delhi - 110001 |
|
1) Date
and description of instrument creating the change |
Cash
credit agreement dated 10.08.2002, regd. On 22.10.2002, modified on
10.08.2002, 21.11.2003 and finally on 21.11.2003 for further security of
equitable mortgage of landed properties of the company situated at Village
Mohammedpur, Jharsa, Gurgaon [Haryana] and all fixed assets of the company
for OCC limit of Rs. 22.500 millions, last modification regd. On 22.12.2003
and again modified on 20.10.2005 to enhance the charge on stock of all
hypothecated goods and book debts from Rs. 22.500 millions to Rs. 90.000
millions to secure OCC/ODRD limit of Rs. 80.000 millions |
|
2) Amount
secured by the charge/amount owing on the securities of charge |
R. 9.000
millions |
|
3) Short
particular of the property charged. If the property acquired is subject to
charge, date of the acquired of the property should be given |
The whole
of the borrowers present and future stocks of raw materials, goods-in-process
of manufacture goods and all finished and manufactured goods and articles
such as blanked sheet and sheet metal components together with all stores,
components and spares which now belong to or may hereafter from time to time,
during the continuance of this security belong to the borrower and which are
or shall or may be brought into, stored or be in or upon or about the
borrowers factory godowns and / or other premises at Mohhamadpur, Jharsa,
Sector – 36, Near Khandsa Village, Gurgaon, Haryana or wherever else the same
may be situated, stored or lying or being including any such raw – materials,
articles or goods, stores, spares and components or other similar moveable
property in course of transit or delivery. All the
borrowers present & future book debts, outstandings, money receivables,
claims, bills, rights to or in moveable properties and moveable assets and
which are now due, owing or payable or belonging to the borrower or which may
at any time hereafter during the continuance of this security become due,
owing, payable or belonging to the borrower in ht course of its business as
security |
|
4) Gist
of the terms and conditions and extent and operation of the charge. |
The above is to secure OCC limit of Rs. 9.000 millions
with interest @1.5% p.a. ove ongoing PLR with a minimum of 13.25% p.a. or at
such other rates as may be specified by the bank from time to time |
|
5) Name
and Address and description of the person entitled to the charge. |
Canara Bank, Parliament Street, New Delhi |
|
6)
Date and brief description of
instrument modifying the charge |
Agreement
Re : Collateral Security : Machinery; Vehicles dated 20.10.2005 and letter
evidencing extension of equitable mortgage along with Schedule ‘A’ & ‘B’
dated 20.10.2005 |
|
7)
Particulars of modifications specifying the terms and conditions or the
extent of operations of the charge in which modification is made and the
details of the modification. |
All
amounts payable under enhanced OCC / ODBD limit of Rs. 80.000 millions
together with all interests, costs, charges, expenses, etc. stand
collaterally secured by the following :-
Other
terms and conditions remained the same. |
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
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.44.12 |
|
UK Pound |
1 |
Rs.87.01 |
|
Euro |
1 |
Rs.57.45 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--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 |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |