MIRA INFORM REPORT
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Report Date : |
08.02.2007 |
IDENTIFICATION DETAILS
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Name : |
IGARASHI
MOTORS INDIA LIMITED |
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Registered Office : |
Plot
No. B-12 to B-15, Phase 2, MEPZ-SEZ, Tambaram, Chennai, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
13.07.1993 |
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Com. Reg. No.: |
18-21997 |
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Legal Form : |
Subject is a Public Limited
Liability Company. The Company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing
of Electrical equipments. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
RATING
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STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 3000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a now a subsidiary of Igarashi Electric Works Limited, Japan (After
disinvestment by Crompton Greaves Limited). Available
information indicates high financial responsibility of the company. Financial
position is good. Payments are correct and as per commitments. Profit margin
is under severe pressure. The
company can be considered good for any normal business dealings. It
can be regarded as a promising business partner in a medium to long run. |
LOCATIONS
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Registered Office/
Factory : |
Plot
No. B-12 to B-15, Phase 2, MEPZ-SEZ, Tambaram, Chennai, Tamilnadu, India |
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Tel. No.: |
91-44-52298100/22628199 |
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Fax No.: |
91-44-22628143 |
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E-Mail : |
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Website : |
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Overseas Offices: |
Located at :-
Tel.
No. 044-522-0525 Fax.
No. 044-522-8760
Tel.
No. 2553-9131 Fax.
No. 2873-5901
Tel.
No. 021-56329471 Fax.
No. 021-56329471
Tel.
No. 630-587-1177 Fax.
No. 630-587-7797 |
DIRECTORS
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Name : |
Mr.
K. K. Nohria |
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Designation : |
Chairman |
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Address : |
11,
Aryavrat, 351, Narayan, Mumbai - |
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Date of Birth/Age : |
74
Years |
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Qualification : |
B.E.,
PHD |
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Experience : |
45
Years |
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Name : |
Mr.
P. Mukund |
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Designation : |
Managing
Director |
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Address : |
2A,
Bishop Walievs, Aveme (West) |
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Date of Birth/Age : |
46
Years |
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Qualification : |
PGDBM,
BE |
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Experience : |
23
Years |
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Name : |
Mr.
K. Igarashi |
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Designation : |
Director |
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Address : |
3,
Kamjamahi, Kawasaki |
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Date of Birth/Age : |
68
Years |
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Qualification : |
Graduate
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Experience : |
40
Years |
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Name : |
Mr.
C. P. Dusad |
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Designation : |
Director |
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Address : |
602,
Avdhutlane, Rasnl Nagar, Ahmedabad |
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Date of Birth/Age : |
68
Years |
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Qualification : |
MBA,
B. Tech |
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Experience : |
40
Years |
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Name : |
Mr.
G. N. Mani |
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Designation : |
Director |
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Address : |
9,
21st Cross Street, Indira Nagar, Chennai |
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Date of Birth/Age : |
75
Years |
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Qualification : |
M.
Tech |
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Experience : |
45
Years |
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Name : |
Mr.
T. Igarashi |
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Designation : |
Director |
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Address : |
3,
Kanya Machi, Kawasaki |
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Date of Birth/Age : |
64
Years |
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Qualification : |
Technical
Graduate |
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Experience : |
35
Years |
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Name : |
Mr.
Keiichi Igarashi |
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Designation : |
Director |
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Address : |
3,
Kanya Machi, Kawasaki |
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Date of Birth/Age : |
40
Years |
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Qualification : |
Technical
Graduate |
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Experience : |
22
Years |
KEY EXECUTIVES
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Name : |
Mr.
P. Dinakara Babu |
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Designation : |
Company
Secretary |
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Name : |
Mr.
R. Chandrasekaran |
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Designation : |
Head
- Finance |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of Holding |
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Promoters |
8323675 |
59.99 |
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Mutual Funds |
165450 |
1.19 |
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Foreign Institutional
Investors (FIIs) |
2155414 |
15.54 |
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Bodies Corporate |
274472 |
1.98 |
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Indian Public
|
272924 2682447 |
1.97 19.33 |
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Total |
13874382 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing
of Electrical equipments. |
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Product: |
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Exports to : |
USA, Europe, China |
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Imports from : |
Korea, Singapore |
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Terms : |
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Selling : |
Credit
(90 days) |
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Purchasing : |
L/C |
PRODUCTION STATUS
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
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Electric Micro Motor |
Nos. |
NA |
7000000 |
3379653 |
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Rotor Assembly |
Nos. |
NA |
18000000 |
17472851 |
GENERAL INFORMATION
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No. of Employees : |
1500 |
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Bankers : |
v
ABN Amro Bank NV v
ICICI Bank Limited v
Indian Bank v
The Bank of Tokyo
Mitsubishi (UFJ) Limited v
State Bank of India v
Mizuho Corporate Bank
Limited |
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Facilities : |
Secured Loans :
Unsecured Loans : From
Banks – Rs.94.630 millions |
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Banking Relations : |
Normal |
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Auditors : |
Sharp & Tannan Chartered Accountants Parsn Manere, A-Wing, 3rd
Floor, 602, Anna Salai, Chennai-600006 |
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Holding Company |
w
Igarashi Electric
Works Limited, Japan w
Cromption Greaves
Limited |
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Associates |
w
Yat Yue Industrial
Company (H.K.) Limited w
CG Capital Investments
Limited w
Igarashi Electric
Works (H.K.) Limited w
Igarashi Motor Sales
LLC, USA w
Igarshi Motoren GmbH w
Igarashi Electric
India Private Limited w
CG Newage Electrical
Limited w
CG-PPI Adhesive
Products Limited w
International
Components India Limited w
CG CoreEl Logic
Systems Limited w
Kale Consultants
Limited w
Grow Talent Company
Limited w
Final Quadrant
Solutions Limited w
Maini Materials
Movement Private Limited w
Maini Precision
Products Private Limited w
CG Smith Software
Private Limited w
CG CoreEL Programmable
Solutions Private Limited w
CG Maersk Information
Technologies Private Limited w
Paxonet Communications
(India) Private Limited w
Technova India Private
Limited w
Fontus Limited w
Igarashi Technologies
Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity
Shares |
Rs. 10 Each |
Rs. 200.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
13874382 |
Equity
Shares |
Rs.10/- each |
Rs.138.744 millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
|
138.744 |
119.000 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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582.356 |
220.958 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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5] Fully Convertible
Warrants |
|
15.388 |
0.000 |
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NETWORTH
|
|
736.488 |
339.958 |
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LOAN FUNDS |
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1] Secured Loans |
|
521.069 |
357.405 |
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2] Unsecured Loans |
|
94.630 |
0.000 |
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TOTAL
BORROWING
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|
615.699 |
357.405 |
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DEFERRED TAX LIABILITIES |
|
65.845 |
61.782 |
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TOTAL
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1418.032 |
759.145 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
|
691.022 |
454.007 |
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Capital work-in-progress
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|
125.309 |
55.950 |
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INTANGIBLE ASSETS (Net Block)
|
|
18.105 |
0.000 |
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Capital work-in-progress
|
|
11.797 |
0.000 |
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INVESTMENT
|
|
45.300 |
47.800 |
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DEFERREX TAX ASSETS
|
|
0.221 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
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|
290.111 |
182.138 |
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Sundry Debtors
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|
465.935 |
286.380 |
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Cash & Bank Balances
|
|
160.327 |
21.916 |
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Other Current Assets
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|
0.000 |
0.000 |
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Loans & Advances
|
|
68.590 |
21.909 |
Total Current Assets
|
|
984.963 |
512.343 |
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Less : CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
|
433.013 |
286.388 |
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Provisions
|
|
25.672 |
24.566 |
Total Current Liabilities
|
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458.685 |
310.954 |
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Net Current
Assets
|
|
526.278 |
201.389 |
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MISCELLANEOUS EXPENSES
|
|
0.000 |
0.000 |
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TOTAL
|
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1418.032 |
759.145 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
Sales Turnover [including other income]
|
|
1824.130 |
1106.599 |
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Profit/(Loss) Before Tax
|
|
16.361 |
38.167 |
Provision for Taxation
|
|
5.128 |
6.547 |
Profit/(Loss) After Tax
|
|
11.233 |
31.620 |
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Expenditure
|
|
1807.769 |
1068.432 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 (1st Quarter) |
30.09.2006 (2nd Quarter) |
31.12.2006 (3rd Quarter) |
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Sales Turnover
|
570.600 |
643.900 |
617.300 |
Other Income
|
0.500 |
8.000 |
19.900 |
Total Income
|
571.100 |
651.900 |
637.200 |
Total Expenditure
|
526.900 |
581.900 |
587.300 |
Operating Profit
|
44.200 |
70.000 |
49.900 |
Interest
|
14.400 |
18.600 |
22.500 |
Gross Profit
|
29.800 |
51.400 |
27.400 |
Tax
|
0.300 |
2.500 |
2.700 |
Reported PAT
|
9.300 |
25.600 |
3.000 |
200606 Quarter 1
Notes
Expenditure
Includes (Increase) / Decrease in Stock in Trade Rs (0.138) million Consumption
of Raw Materials Rs 431.951 million Other Expenditure Rs 62.152 million General
Administrative & Selling Expenses Rs 32.989 million 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 03
Complaints disposed off during the quarter 03 Complaints unresolved at the end
of the quarter Nil 1. The above results are based on same set of accounting
policies as of the previous period and have been subjected to review by
statutory auditors and recommended by the Audit committee. These have been
taken on record by the Board of Director in their meeting held on July 26,
2006. 2. The Company is operating primarily in Automotive Component Segment as
such no segment reporting is made. 3. The Company is covered by the provisions
of the Special Economic Zones Act, 2006 and accordingly no provision for Current
Tax made. Provision for Tax represents Fringe Benefit Tax of Rs 0.265 million
and Deferred Tax Liability of Rs 1.416 million.
200609 Quarter 2
Notes
Expenditure
Includes (Increase)/Decrease in stock in Trade Rs (1.681) million Consumption of
Raw Materials Rs 463.678 million Other expenditure Rs 75.105 million General
Administrative & Selling Expenses Rs 44.933 million Tax indicates Provision
for taxation (including Deferred Tax) EPS is Basic Status of Investor
Complaints for the quarter ended September 30, 2006 Complaints Pending at the
beginning of the quarter Nil Complaints Received during the quarter 01
Complaints disposed off during the quarter 01 Complaints unresolved at the end
of the quarter Nil 1. The above results are based on same set of accounting
policies as of the previous period and have been subjected to review by
statutory auditors and recommended by the Audit committee. These have been
taken on record by the Board of Director in their meeting held on October 26,
2006. 2. The Company is operating primarily in Automotive Component Segment as
such no segment reporting is made. 3. The Company is covered by the provisions
of the Special Economic Zones Act, 2006 and accordingly no provision for
Minimum Alternate Tax made. Provision for Tax represents Fringe Benefit Tax of
Rs 0.65 million and Deferred Tax Liability of Rs 3.804 million. 4. Acness
Evolution Portfolio Ltd has not exercised the option of fully Convertible
Warrants of 854900 by October 11, 2006. 5. The Company has so far invested Rs
41.70 million (64.52% shareholding) in WT Plastics & Tools Private Limited
- a subsidiary Company.
200612 Quarter 3
Notes
Expenditure
Includes (Increase)/Decrease in stock in Trade Rs (13.923) million Consumption
of Raw Materials Rs 480.097 million Other expenditure Rs 70.551 million General
Administrative & Selling Expenses Rs 50.574 million Tax indicates Provision
for taxation (including Deferred Tax) EPS is Basic Status of Investor
Complaints for the quarter ended December 31, 2006 Complaints Pending at the
beginning of the quarter Nil Complaints Received during the quarter 02
Complaints disposed off during the quarter 02 Complaints unresolved at the end
of the quarter Nil 1. The above results are based on same set of accounting
policies as of the previous period and have been subjected to review by
statutory auditors and recommended by the Audit committee. These have been
taken on record by the Board of Director in their meeting held on January 30,
2007. 2. The Company does not have taxable Income under the provision of the
income Tax Act, 1961 and hence no provision for Current tax has been made.
Provision for Tax represents Fringe Benefit Tax of Rs 1.192 million and
Deferred Tax Liability of Rs 5.654 million. 3. Other Income includes Rs 15.388
million representing forfeiture of Share Warrant Money received from Aeneas
Evolution Portfolio Limited.
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
Debt-Equity Ratio
|
|
0.92 |
1.03 |
Long Term Debt-Equity Ratio
|
|
0.58 |
0.62 |
|
Current Ratio |
|
1.17 |
0.97 |
TURNOVER RATIO
|
|
|
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Fixed Assets |
|
2.16 |
1.75 |
Inventory
|
|
7.44 |
7.42 |
|
Debtors |
|
4.67 |
4.99 |
Interest Cover Ratio
|
|
0.12 |
0.54 |
|
Operating Profit Margin (%) |
|
3.83 |
5.80 |
Profit Before Interest And Tax Margin
(%)
|
|
0.39 |
1.74 |
|
Cash Profit Margin (%) |
|
0.58 |
2.58 |
|
Adjusted Net Profit Margin
(%) |
|
(2.86) |
(1.48) |
|
Return On Capital Employed
(%) |
|
0.68 |
2.70 |
|
Return On Net Worth (%) |
|
(9.48) |
(4.63) |
STOCK PRICES
|
Face
Value |
Rs.
10/- |
|
High |
Rs.
(0.01)/- |
|
Low |
Rs.
(0.01)/- |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
During the year under review, the cost of steel and copper wires
increased substantially. These are basic raw materials used by the Company. The
Company has taken various measures to address these competitive challenges by
way of in sourcing, improving productivity, re-organizing operations and
talking to customers.
The Company has so far been offering fixed price contracts
to its customers as desired by them. Steep rise in the price of Steel and
Copper during last year was not anticipated while booking these orders. This
has resulted in significant increase in cost of production and consequent lower
operating margins.
The Company has taken various measures to address these
issues. These include in sourcing of components and where possible,
renegotiating the contracts with the customers.
The Profitability was also adversely affected due to
increase in supply chain cost to meet the increased off take of their
customers. These costs are now under control.
The weakening of Euro also affected their Profitability.
They have taken steps to hedge against currency fluctuation to minimize such
effects.
The steps as mentioned above along with focus on further
improving productivity, streamlining operations and other cost out measures
will result in improved operating margins.
The Board is confident of sustaining the growth momentum as
the Company has already embarked on additional business programs required by
their customers.
TRANSFER TO RESERVES
The Company proposes to transfer Rs 40.607 millions to the
Reserves and the Reserves after the transfer at the end of the year 31st March,
2006 is Rs 582.356 millions as against the Total Reserves of Rs. 220.959
millions as at 31.03.2005.
QUALITY AND
ENVIRONMENT
The Directors are pleased to inform you that during the year
the Company continued to work on live APQP (Advanced Product Quality Planning)
processes for different Programs in the automotive industry. This ensures an
effective advance failure mode analysis to ensure that Quality gets built into
the Design as well as Process.
AWARDS / RECOGNITION
The Company has been awarded TS-16949 Certification; the new
process based Quality System which will translate the Quality Model from Design
of Product and Process to all elements of the Organization. During the year,
the Company has been awarded ISO 14001 Certification for compliance of
Environmental Management System requirements.
IGARASHI TECHNOLOGIES
PRIVATE LIMITED - SUBSIDIARY COMPANY
The Company is engaged in the business of designing Product
and Process Technology of motor sub assemblies, motors and motor systems The
first indigenously designed Motor for an Engine application is likely to
capture a significant Global market share. Many new motors for Domestic
applications have been designed and they are being launched progressively. The
Company in its first full year of operation recorded Net f les of Rs. 11.689
millions and Net Profit of Rs. 2.643 millions. The Company has worked on
various products and process development mainly for Igarashi Group and will
soon commence Engineering and Technological work for clients other than
Igarashi Group.
As required by Accounting Standards, the financial
statements of the Company reflecting the Consolidation of Accounts of for
Company along with Igarashi Technologies Private Limited (Subsidiary Company)
are annexed to this report.
DELPHI
The Company's Customer Delphi, USA along with its U.S
Subsidiaries had filed voluntary petition on 08.10.2005 for re-organization
relief under Chapter 11 of title 11 of the United States Code, 11 U.S.C before
Bankruptcy Court at New York, USA. Since, the Company is a key supplier, all
dues outstanding on petition date have been paid and after petition date the
supplies to Delphi, USA and payments continue smoothly.
BIODATA
CG Igarashi
Motors (CIM), incorporated in Jan.'92 was promoted by Crompton Greaves (CGL),
Igarashi Electric Works (IEW), Japan, and International Components Corporation
(ICC), US.
CIM
manufactures permanent magnet micrometers. The company has technical collaborations
with IEW and ICC for technology transfer and sourcing of all critical plant and
equipment. CIM also has a marketing arrangement with ICC under which ICC will
purchase five million micrometers pa from CIM. CIM plans to venture into
high-volume subcontracting for end-user multinational companies.
The company came out with an Rs 27.70-millions public issue in Jan.'94 to
part-finance a 100% EOU to manufacture permanent magnet DC micro motors. Total
project cost was at Rs 100 millions.
During 1997-98, the company has expanded capacity of Rotors by 1.5 million nos
there by taking the capacity to 3.5 million nos and then to 6 million nos in
1998-99. The company was certified QS 9000 in November 1998 and the Quality
System has been upgraded to conform to the latest edition of QS 9000 with
effect from January 2000.
During 2002-03 Crompton Greaves Limited have divested their holding in favour
of Igarashi Electric Works. Since Igarashi Electric Works (HK) ltd have
acquired 3099993 equity shares of CG Capital & Investments Ltd, the Board
has decided to change the name of the company and the Registrar have approved
'Igarashi Motors India Limited' as the new name.
The company is examining the possibility of spinning off its non motor business
into a focused JV with Igarshi Electric Works, Japan.
FIXED ASSETS
The company’s fixed assets of important value include building, plant & equipment, furniture & fixtures and vehicles.
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. 44.06 |
|
UK
Pound |
1 |
Rs. 86.34 |
|
Euro |
1 |
Rs. 57.46 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
63 |
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 |