MIRA
INFORM REPORT
|
Report Date : |
14.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
SANGHVI
FORGING AND ENGINEERING LIMITED |
|
|
|
|
Registered Office : |
244/6, GIDC Industrial Estate, Waghodia, Vadodara - 391 760 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
16.03.1989 |
|
|
|
|
Com. Reg. No.: |
04-12015 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U28910GJ1989PLC012015 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
BRDS02165C |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AADCS2903E |
|
|
|
|
Legal Form : |
A
closely held public limited liability company. |
|
|
|
|
Line of Business : |
Manufacturer and exporter of stainless Steel Flanges and CNC
Machined Precision Components. |
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
80000 |
|
|
|
|
Status : |
Satisfactory
|
|
|
|
|
Payment Behaviour : |
Regular
|
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject
is a well established and reputed company having satisfactory track.
Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office / Factory : |
244/6, GIDC Industrial Estate, Waghodia, Vadodara - 391 760, India |
|
Tel. No.: |
91-2668-263411
/ 263020 |
|
Fax No.: |
91-2668-263411
/ 263020 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head
Office : |
A/8, Parvati Chamber, Opposite Apsara Cinema, Pratapnagar Road,
Vadodara - 390 004, India |
|
Tel.
No.: |
91-265-2580644,
2581658 |
|
Fax
No.: |
91-265-2581126 |
|
E-Mail
: |
|
|
|
|
|
Branches
: |
Canada: Mr.
Mohammed Mehta Chemie
Impex Trading 153D,
Lorraine Ave, Kitchener, ON, N2B2N3, Canada Tel
No. : 1 (0)519 722 7279 Fax
No. : 1 (0)519 579 9703 E-Mail
: cempex@rogers.com United
kingdom: Mr.
Andrew Rigby Newlo
International Limited P.O.
Box 2, Chapel – En - Le – Firth, High Peak, SK23 0QY, U.K. Tel
No. : 44 (0) 1298 812973 / 7770 592 598 Fax
No. : 44 (0) 1298 813282 E-Mail
: Andrew@newlo.com |
DIRECTORS
|
Name : |
Mr.
Babulal Sanghvi |
|
Designation : |
Chairman
|
|
Address : |
41
Shree Society, New Khanderao Road, Vadodara, Gujarat, India |
|
Date of Birth/Age : |
10.04.1951 |
|
Date of Appointment : |
16.03.1991 |
|
|
|
|
Name : |
Mr.
Jayanti Sanghvi |
|
Designation : |
Director
|
|
Address : |
41
Shree Society, New Khanderao Road, Vadodara, Gujarat, India |
|
Date of Birth/Age : |
04.01.1976 |
|
Date of Appointment : |
18.01.1997 |
|
|
|
|
Name : |
Mr.
Naresh Sanghvi |
|
Designation : |
Director
|
|
Address : |
41 Shree
Society, New Khanderao Road, Vadodara, Gujarat, India |
|
Date of Birth/Age : |
10.12.1977 |
|
Date of Appointment : |
04.01.2000 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
|
No. of Shares |
|
Babulal
S. Sanghvi |
|
149966 |
|
Bhamriben
B. Sanghvi |
|
50175 |
|
Ghevarchand
S. Sanghvi |
|
10166 |
|
Jayantilal
B. Sanghvi |
|
134001 |
|
Vikram
B. Sanghvi |
|
27502 |
|
Khimraj
S. Sanghvi |
|
9333 |
|
Naresh
B. Sanghvi |
|
119833 |
|
Mahesh
B. Sanghvi |
|
35505 |
|
Devraj
S. Sanghvi |
|
5000 |
|
Pukhraj
H. Bhansali |
|
33333 |
|
Jivraj
G. Modi |
|
4167 |
|
Motilal
M. Doshi |
|
4166 |
|
Ganpatraj
A. Sanghvi |
|
4166 |
|
Pyariben
M Sanghvi |
|
51166 |
|
Hadmat
K. Sanghvi |
|
3333 |
|
Ganpat
K. Sanghvi |
|
3333 |
|
Babulal
D. Doshi |
|
2500 |
|
Babulal
S. Sanghvi – HUF |
|
33337 |
|
Bhansali
Ferroco Metal |
|
50000 |
|
Meena
J Sanghvi |
|
47000 |
|
Kirandevi
N. Sanghvi |
|
20000 |
|
Teena
M. Sanghvi |
|
5001 |
|
Total |
|
802983 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and exporter of stainless Steel Flanges and CNC
Machined Precision Components. |
|
|
|
|
Export to : |
USA, Australia, Canada, France, Germany Israel, Indonesia etc
across the world |
PRODUCTION
STATUS
As on 31.03.2004
|
Particulars |
Unit |
|
|
Actual Production |
|
Forging and Fittings |
Nos |
|
|
99965 |
GENERAL
INFORMATION
|
Customers : |
Their valued Customers are all Chemical & Petro
Chemical industries, Power Houses, Fertilizer, Fabricators and other
Engineering Institutions. Hazira LNG Private Limited ( Subsidiary of SHELL ) |
||||||||||||
|
|
|
||||||||||||
|
Bankers : |
State
Bank of India Specialised
Commercial Branch Mandvi,
Vadodara – 390017, Gujarat, India ICICI
Bank ABN
Amro Bank Alahabad
Bank |
||||||||||||
|
|
|
||||||||||||
|
Facilities : |
|
|
|
|
|
Banking Relations : |
Satisfactory
|
|
|
|
|
Auditors : |
Yogesh
Bhandari Chartered
Accountants Shah
& Bhandari, 38/101, Gautam Nagar, Race Course, Vadodara – 390007,
Gujarat, India |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 10.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
802983 |
Equity
Shares |
Rs. 10/- each |
Rs. 8.030 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 |
8.030 |
8.030 |
5.530 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
12.590 |
4.333 |
2.082 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
20.620 |
12.363 |
7.612 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
33.032 |
18.836 |
14.904 |
|
|
2] Unsecured Loans |
10.446 |
10.243 |
9.998 |
|
|
TOTAL BORROWING |
43.478 |
29.079 |
24.902 |
|
|
DEFERRED TAX LIABILITIES |
3.999 |
2.416 |
1.924 |
|
|
|
|
|
|
|
|
TOTAL |
68.097 |
43.858 |
34.438 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
28.781 |
15.781 |
12.158 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
24.690
|
16.543 |
13.268 |
|
|
Sundry Debtors |
26.204
|
19.130 |
12.862 |
|
|
Cash & Bank Balances |
1.827
|
1.845 |
0.871 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
11.829
|
5.711 |
3.396 |
|
Total Current Assets |
64.550
|
43.229 |
30.397 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
17.203
|
11.058 |
6.984 |
|
|
Provisions |
8.031
|
4.094 |
1.133 |
|
Total Current Liabilities |
25.234
|
15.152 |
8.117 |
|
|
Net Current Assets |
39.316
|
28.077 |
22.280 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
68.097 |
43.858 |
34.438 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
139.881 |
140.715 |
61.449 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
16.288 |
5.677 |
1.382 |
|
Provision
for Taxation |
6.200 |
2.164 |
0.443 |
|
Profit/(Loss)
After Tax |
10.088 |
3.513 |
0.939 |
|
|
|
|
|
|
Export
Value |
NA |
NA |
26.565 |
|
|
|
|
|
|
Total
Expenditure |
123.593 |
135.038 |
60.067 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
7.21
|
2.50 |
1.53 |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
11.64
|
4.03 |
2.25 |
|
|
|
|
|
|
|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
17.45
|
9.62 |
3.25 |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
0.79
|
0.46 |
0.18 |
|
|
|
|
|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
3.33
|
3.58 |
4.34 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
2.56
|
2.85 |
3.74 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets
- Land
- Building
- Furniture and Fixture
- Furnace
- Dies and Moulds
- Plant and Machinery
- Office Equipments
- Car
- Cycle
- Electrical Installations
- Scooter
- Pulsar – Bike
- Jeep
- Bolero
- Computer
- Fax Machine
Note Forming Part of Accounts [2003-2004]
Contingent Liabilities
- In respect of Guarantee
issued by Bank Rs. Nil
- The notified area
authorities has raised a demand of Rs. 0.268 Millions towards Tax for the
past years, which is disputed by the association of GIDC estate Waghodia
and termed as not payable by the company.
- Gratuity and leave
encashment benefit payable to the employees of the company are accounted
on cash basis in absence of actuarial valuation the liability and its
effect on profit for the year of
the company is not quantifiable.
- The Income – Tax Assessments
of the company have been completed up to assessment year 2003-04
- The company does not have
any outstanding balance payable to Small Scale Industries and Ancillary
Industrial Suppliers exceeding Rs. 0.100 Millions and were outstanding for
more than 30 days or at the year end.
- In the opinion of the Board
of Directors current assets, loans and advance have a valued on
realization in the ordinary course of business at least equal to the
amount at which they are stated in the Balance Sheet.
- Balance to of sundry
debtors, Creditors, Loan and Advances are subject to confirmations.
- Previous year’s figures have
been regrouped and rearranged wherever necessary.
AS PER WEBSITE
Sanghvi Forging & Engineering Limited Commenced manufacturing
operations at Waghodia near Baroda to manufacture Forged Flanges, Forged
Fittings. Automobile Components and CNC Machined Precision Components in the
year1990
The Company soon established a name for itself as a reliable manufacturer,
exporter of stainless Steel Flanges and CNC Machined Precision Components. Over
the years the company has grown from strength increasing capacity as well as
diversifying its activities to manufacturing.
SANGHVI has installed modern plant and machinery which includes forging shop,
die shop, heat treatment shop. Conventional & CNC machine shop and quality
control equipments and is backed by dedicated and dynamic technocrats having
vast experience in the field and stringently working with the requirements of
ISO9002.
SANGHVI's large manufacturing capacity, high quality standards have made it one
of the most reliable sources of International Quality products both at Domestic
and in International Market.
Product
|
1. ANSI STANDARD |
|
|
Size : |
1/2" TO 16" |
|
Type : |
WNRF, SORF, BLRF, Threaded etc |
|
Dimension : |
ASME B 16.5 |
|
Material : |
SS304,SS304L,SS316,SS316L,SS316Ti,SS321 |
|
Pressure Rating : |
150#, 300#, 600#, 900#, 1500#, 2500# Class |
|
|
|
|
2. DIN STANDARD |
|
|
Size : |
DN 10 to DN 400 |
|
Type : |
Slipon, Weldneck, Blind etc |
|
Dimension : |
DIN2576, DIN2633, DIN2527 etc. |
|
Material : |
SS304, SS304L, SS316, SS316L, SS316Ti, SS321 |
|
Pressure Rating : |
PN10, PN16, PN40, PN64 |
|
|
|
|
3. B.S. STANDARD |
|
|
Size : |
10 NB to 400 NB |
|
Type : |
Slipon, Weldneck, Blind etc |
|
Dimension : |
BS4504, BS 10 T - D,E,F etc. |
|
Material : |
SS304, SS304L, SS316, SS316L, SS316Ti, SS321 |
|
Pressure Rating : |
PN5, PN10, PN16, etc. |
|
Corporate
identity number of the company |
U28910GJ1989PLC012015 |
|
Name of
the company |
SANGHVI
FORGING AND ENGINEERING LIMITED |
|
Address
of the registered office or of the principal place of business in India of the company |
102
Steel Chambers Lakkadpith Road, Barodada, Gujarat, India |
|
This
form is for |
Modification
of Charge |
|
Type
of charge |
Hypothecation
|
|
Particular
of charge holder |
State
Bank of India Specialised
Commercial Branch Mandvi,
Vadodara – 390017, Gujarat, India |
|
Amount
secured by the charge |
Rs.
52.500 Millions |
|
Brief
of the principal terms an conditions and extent and operation of the charge |
Margin
: Raw
Material 25 % Stock
10 % Finished
Goods 25 % L/C
and Bank Guarantee 10 % p.a. Rate
of Interest 0.25 % Above
SBAR i.e. 11.00 % p.a. |
|
Description
of the property charged indicating whether it is a charged on |
Stock
in trade Plant
and Machinery Furniture
and Fixture Vehicles
Book
Debts |
|
Particulars
of the property charged |
1st
charge by hypothecation over goods, book debts, movable and other assets
belonging to or in possession of the company at company’s premises or at any
other place. |
|
Charge
identification number of the charge to be modified |
80004863 |
|
Brief
of the principal terms an conditions and extent and operation of the charge |
Supplemental
general agreement for the grant for the grant of small industrial advances
and hypothecation of goods, book dents and other assets. |
|
Date
of instrument Creating the charge |
06.06.2006 |
|
Particulars
of the property charged |
Original
charge created on 14.02.2005 for Rs. 41.000 Millions is now modified to Rs.
52.500 Millions to cover the additional credit facility of Rs. 11.500
Millions |
|
Corporate
identity number of the company |
U28910GJ1989PLC012015 |
|
Name
of the company |
SANGHVI
FORGING AND ENGINEERING LIMITED |
|
Address
of the registered office or of the principal place of business in India of the company |
102
Steel Chambers Lakkadpith Road, Barodada, Gujarat, India |
|
This
form is for |
Creation
of Charge |
|
Type
of charge |
Equitable mortgage or mortgage of property by deposition the title deeds |
|
Particular
of charge holder |
State
Bank of India Specialised
Commercial Branch Mandvi,
Vadodara – 390017, Gujarat, India |
|
Date
of instrument Creating the charge |
06.06.2006 |
|
Amount
secured by the charge |
Rs.
71.500 Millions |
|
Brief
of the principal terms an conditions and extent and operation of the charge |
Margin
: Raw
Material 25 % Stock
10 % Finished
Goods 25 % L/C
and Bank Guarantee 10 % p.a. Rate
of Interest 0.25 % Above
SBAR i.e. 11.00 % p.a. |
|
Description
of the property charged indicating whether it is a charged on |
Immovable
Properties |
|
Name of the company |
Sanghvi Forging And Engineering Limited |
||||||||||||||||||||||||
|
Presented By |
Mr. Babulal Sanghvi And State Bank of
India |
||||||||||||||||||||||||
|
1) Date and description of instrument creating the change |
General
agreement for the grant of Small Industrial Advances and Hypothecation of
Movable, Book Debts and other assets dated 14.02.2005 Ancillary
agreement No. 1 dated 14.02.2005 Ancillary
agreement No. 3 dated 14.02.2005 Ancillary
agreement No. 6 dated 14.02.2005 |
||||||||||||||||||||||||
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs.
41.000 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 |
First
charge by way of hypothecation of all present and future goods book debts,
movables and other assets, such as outstanding moneys, receivable, claims,
bills, invoice, documents contacts engagement securities, investments and
right and the present machinery listed in the Annexure hereinto and all
future machinery belonging to or in the possessing or under the control of
the Borrower where lying stored and
kept and whether in possession of the company. |
||||||||||||||||||||||||
|
4) Gist of the terms and conditions and extent and operation of the charge. |
The
aforesaid hypothecation shall have effect to create First charge in favour of
the Bank to secure as a continuing security for the due payment of the following
:
Together
with the due repayment by the company to the Bank at any time on demand of
all the monies now or at any time and from time to time hereafter of due may
become due become due and owing by the company to the bank in respect of and
under the above said credit facilities and interest, discount, commission,
charges thereon and all legal and other costs, payments, reimbursements and
expenses relating thereto and payable hereunder the incidental to this
security or for enforcement thereof
|
||||||||||||||||||||||||
|
5) Name and Address and description of the person entitled to the charge. |
State
Bank of India Specialised
Commercial Branch Mandvi,
Vadodara – 390017, Gujarat, India |
||||||||||||||||||||||||
|
6) Date and brief description of instrument modifying the charge |
NA |
||||||||||||||||||||||||
|
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. |
NA |
||||||||||||||||||||||||
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.44.09 |
|
UK
Pound |
1 |
Rs.86.59 |
|
Euro |
1 |
Rs.57.92 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
49 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome financial
difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|