MIRA
INFORM REPORT
|
Report Date : |
19.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
VISHAL
EXPORTS OVERSEAS LIMITED |
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Registered Office : |
Vishal
House, Opposite Sales India, Ashram Road, Ahmedabad – 380009, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
06.03.1995 |
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Com. Reg. No.: |
04-24874 |
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CIN No.: [Company
Identification No.] |
L51909GJ1995PLC024874 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMV00318D |
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Legal Form : |
A
public limited liability company. The company’s Shares are listed on the
Stock Exchange |
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Line of Business : |
Imports
and Export of Various Commodities |
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
8000000 |
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Status : |
Satisfactory
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Payment Behaviour : |
Slow
but Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is an established company having moderate track. Profit margin is under
severe pressure. Trade relations are fair. General financial position is
satisfactory. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered Office : |
Vishal
House, Opposite Sales India, Ashram Road, Ahmedabad – 380009, Gujarat |
|
Tel. No.: |
91-79-27544591-96/7543019/7543534 |
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Fax No.: |
91-79-27541894 |
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E-Mail : |
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Website : |
DIRECTORS
|
Name : |
Shri Subhashchandra Mehta |
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Designation : |
Chairman |
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Name : |
Shri Pradeep Mehta |
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Designation : |
Managing Director |
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Name : |
Shri Dipak Mehta |
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Designation : |
Jt.Managing Director |
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Name : |
Shri T.G.Natarajan |
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Designation : |
Director |
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Name : |
Shri Mayur Shah |
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Designation : |
Director |
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Name : |
Shri Praful Dave |
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Designation : |
Director |
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Name : |
Shri Rakesh Bhatt |
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Designation : |
Director |
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Name : |
Shri Rajesh Parekh |
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Designation : |
Director |
KEY EXECUTIVES
|
Name
: |
Shri Suresh Gondalia |
|
Designation
: |
Company
Sectary |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters/Directors |
199,846,710 |
55.51 |
|
Bank's/Financial institutions, Insurance Companies |
4,240,600 |
1.18 |
|
Private Corporate Bodies |
30,445,528 |
8.46 |
|
Indian Public |
122,556,590 |
34.04 |
|
NRIs/OCBs |
1,977,427 |
0.55 |
|
Trusts/Clearing Members |
9,33,145 |
0.26 |
|
Total |
360000000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Imports
and Export of Various Commodities |
GENERAL
INFORMATION
|
No. of Employees : |
200 |
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Bankers : |
v
State Bank of India v
Andhra Bank v
Bank of India v
Bharat Overseas Bank Limited v
Canara Bank v
Central Bank of India v
Dena Bank v
Indian Bank v
Indian Overseas Bank v
Indusind Bank Limited v
Lord Krishna Bank Limited v
Punjab National Bank v
State Bank of Indore v
State Bank of Travancore v
The Jammu and Kashmir Bank Limited. v
The South Indian Bank Limited v
UCO Bank v
Union Bank of India v
United Bank of India |
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Facilities : |
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Banking Relations : |
-- |
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Auditors : |
M/s. H.J. Parikh a Company Chartered Accountants Ahmedabad |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
150,00,00,000 |
Equity
Shares |
Rs. 1/- Each |
Rs. 1500.000 Millions |
|
70,00,000 |
Preference
Shares |
Rs. 10/- Each |
Rs. 70.000 Millions |
|
|
Total |
|
Rs. 1570.000
Milllions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
36,00,00,000 |
Equity
Shares |
Rs. 1/- Each |
Rs. 360.000 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
360.000 |
120.000 |
120.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1662.002 |
1576.876 |
1373.600 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2022.002 |
1696.876 |
1493.600 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2534.929 |
2085.228 |
1754.600 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
2534.929 |
2085.228 |
1754.600 |
|
|
DEFERRED TAX LIABILITIES |
274.261 |
160.876 |
0.000 |
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|
|
|
|
|
|
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TOTAL |
4831.192 |
3942.980 |
3248.200 |
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|
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|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1196.531 |
701.079 |
370.600 |
|
|
Capital work-in-progress |
162.121 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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INVESTMENT |
23.363 |
21.331 |
17.100 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
866.901
|
742.224 |
865.200 |
|
|
Sundry Debtors |
5014.141
|
4288.080 |
3216.900 |
|
|
Cash & Bank Balances |
2015.826
|
630.076 |
645.500 |
|
|
Other Current Assets |
870.982
|
881.317 |
0.000 |
|
|
Loans & Advances |
1095.728
|
340.047 |
692.600 |
|
Total Current Assets |
9863.578
|
6881.744 |
5420.200 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
6353.225
|
3575.586 |
2524.400 |
|
|
Provisions |
63.435
|
86.132 |
36.100 |
|
Total Current Liabilities |
6416.660
|
3661.718 |
2560.500 |
|
|
Net Current Assets |
3446.918
|
3220.026 |
2859.700 |
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MISCELLANEOUS EXPENSES |
2.259 |
0.544 |
0.800 |
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|
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|
|
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TOTAL |
4831.192 |
3942.980 |
3248.200 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
39509.809 |
26688.727 |
25675.100 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
501.945 |
348.759 |
326.000 |
|
Provision
for Taxation |
156.294 |
90.730 |
73.000 |
|
Profit/(Loss)
After Tax |
345.651 |
258.029 |
253.000 |
|
|
|
|
|
|
Export
Value |
6188.766 |
7100.644 |
NA |
|
|
|
|
|
|
Import
Value |
8004.157 |
10906.100 |
NA |
|
|
|
|
|
|
Total
Expenditure |
39007.864 |
26339.915 |
25671.700 |
QUARTERLY
|
PARTICULARS |
30.06.2006 (1st Quarter) |
30.09.2006 (2nd Quarter) |
31.12.2006 (3rd Quarter) |
|
Sales Turnover |
8853.300 |
3319.600 |
1468.900 |
|
Other Income |
0.900 |
5.700 |
403.100 |
|
Total Income |
8854.200 |
3325.300 |
1872.000 |
|
Total Expenditure |
8573.600 |
3234.700 |
1668.900 |
|
Operating Profit |
280.600 |
90.600 |
203.100 |
|
Interest |
138.200 |
60.800 |
182.500 |
|
Gross Profit |
142.400 |
29.800 |
20.600 |
|
Depreciation |
19.000 |
28.700 |
19.500 |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
123.400 |
1.100 |
1.100 |
200606 Quarter 1 - The results for the
quarter ended 30th June 2006 have been subjected to' Limited Review' by
Auditors of the Company, 2. Provision for taxation including deferred tax
liabilities shall be provided at the end of the year. 3. Earning Per Share for
previous periods have been restated /adjusted on account of issuance of
24,00,00,000 bonus equity shares in August 2005. 4. In terms of the amended
clause 41 of the listing agreement, details of members or investors complaints
for the quarter ended on 30th June 2006 are: Opening : 2 Received during the
quarter: 12 , Disposed off: 12 , Balance 2. 5. The above results have been
reviewed by the Audit Committee and were thereafter approved by the Board at
its meeting held on 31st July, 2006. 6. Previous period's figures have been
regrouped / rearranged wherever necessary.
200609 Quarter 2 - Expenditure Includes
(Increase) / Decrease in Stock in Trade Rs 337.366 million Consumption of Raw
Materials Rs 2795.482 million Staff Cost Rs 3.752 million Other Expenditure Rs
98.113 million EPS is Basic and Diluted Status of the Investors Complaints for
the quarter ended September 30, 2006 Complaints Pending at the beginning of the
quarter 02 Complaints received during the quarter 12 Complaints disposed off
during the quarter 14 Complaints unsolved at the end of the quarter Nil 1. The
results for the quarter ended September 30, 2006 have been subjected to
'Limited Review' by Auditors of the Company. 2. Provision for taxation
including deferred tax liabilities shall be provided at the end of the year. 3.
Interest earned from banks on commercial advances received from overseas
customers against exports has been netted off against Financial Charges. 4. The
above results have been reviewed by the Audit Committee and were thereafter
approved by the Board at its meeting held on October 31, 2006. 5. Previous
period's figures have been regrouped / rearranged wherever necessary.
200612 Quarter 3 - Expenditure Includes (Increase)
/ Decrease in Stock in Trade Rs 92.233 million Consumption of Raw Materials Rs
1501.009 million Staff Cost Rs 3.728 million Other Expenditure Rs 71.923
million EPS is Basic and Diluted Status of the Investors Complaints for the
quarter ended December 31, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints received during the quarter 66 Complaints disposed off
during the quarter 66 Complaints unsolved at the end of the quarter Nil 1. The
results for the quarter ended December 31, 2006 have been subjected to 'Limited
Review' by Auditors of the Company. 2. provision for taxation arid Fringe
Benefit Tax including deferred tax liabilities shall be provided at the end of
the year. 3. The above results have been reviewed by the Audit Committee and
were thereafter approved by the Board at its meeting held on January 31, 2007.
4. Previous period's figures have been regrouped rearranged wherever necessary.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
1.24 |
1.20 |
1.10 |
|
Long Term
Debt-Equity Ratio |
0.37 |
0.21 |
0.11 |
|
Current Ratio |
1.22 |
1.29 |
1.34 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
38.16 |
46.31 |
94.87 |
|
Inventory |
48.92 |
33.35 |
34.27 |
|
Debtors |
8.46 |
7.14 |
9.92 |
|
Interest Cover Ratio |
1.99 |
1.97 |
2.09 |
|
Operating Profit
Margin(%) |
2.69 |
2.75 |
2.52 |
|
Profit Before
Interest And Tax Margin(%) |
2.56 |
2.64 |
2.46 |
|
Cash Profit
Margin(%) |
1.01 |
1.07 |
1.05 |
|
Adjusted Net Profit
Margin(%) |
0.88 |
0.96 |
1.00 |
|
Return On Capital
Employed(%) |
24.18 |
20.13 |
21.62 |
|
Return On Net
Worth(%) |
18.59 |
16.17 |
18.32 |
STOCK PRICES
|
Face
Value |
Rs.1/- |
|
High |
Rs.3.04/- |
|
Low |
Rs.2.87/- |
LOCAL AGENCY
FURTHER INFORMATION
History
Vishal Exports Overseas Limited was formed
as a partnership firm in the name of Vishal Export in the year 1988 and was
subsequently converted into Public Limited Company on 06.03.1995.The company is
in the business of imports and exports of various commodities.The company is
mainly exports agro products such as Soyabean Meal,Deoiled cakes and other oil seeds,Sesame
seeds,Frozen foods,garments,wheat flour etc and other other commodities to more
than 40 countries.The company also imports commodities like
vitamins,chemicals,precious metals,edible oils etc.
To exploit the potential of Wind Farms in India,the company has commissioned 7
Wind Turbines during the year 2003 in Tamilnadu and Rajasthan with a total
investment of Rs.105.900 Millions. The company has commissioned 5 more wind
turbines of 1.25MW each at a project cost of Rs.242.500 Millions during the
financial year 2003-04.
REVIEW OF BUSINESS
OPERATION
The Company has recorded an all round encouraging performance during the
financial year 2005-2006. For the year under review, the turnover has increased
to 39357.800 Millions as against Rs. 26805.600 Millions of the previous year,
in percentage terms it is increased by 46.83% as compared to previous year. The
Profit Before Interest, Depreciation and Tax has increased to Rs. 1057.900
Millions as against Rs. 737.100 Millions of previous year, in percentage terms
it is increased by 43.52% as compared to previous year. The Net profit has
increased to Rs. 345.700 Millions as compared to Rs. 258.000 Millions of
previous year, in percentage terms it is increased by 33.96% as compared to
previous year. In segment wise result, the Revenue from electricity generation
increased to Rs. 115.100 Millions as compared to Rs. 60.600 Millions of
previous year.
EXPANSION IN POWER PROJECTS
Wind Power
Continuing its thrust in the power sector, the company added, during the year
under review, wind farms totaling to 11.55 mw. Out of this 7.50 mw was set up
in Village Andhiyur, district Coimbatore, Tamil nadu and 4.05 mw in Village
Errukkandurai, Tirunelveli district, Tamil Nadu. With these installations, the
company has wind farm capacity aggregating to 27.975 mw as on 31 March, 2006.
All the installed wind farms are functioning at their rated capacity and the
company is receiving the payments regularly from the State Electricity Boards
as per the terms of the power purchase agreement entered into with them. The
total revenue from the power division was Rs. 115.100 Milllions as against Rs.
60.600 Millions for the previous year.
The company has also initiated the steps towards the implementation of 100 mw
wind farm. The appraisal of the project has been completed and the syndication
for the term loan required for the project is underway. The total project cost
is estimated at Rs. 5580.900 Millions and it is proposed to be met by way of
term loan of Rs. 4464.700 Millions and balance through equity of Rs. 1116.200
Millions. The company had commenced the setting up of 10 mw of wind farm,
forming part of the total 100 mw envisaged, at Village Ayikudi, Madurai
district, Tamil Nadu during the last quarter of 2005-06 and the same has been
successfully completed and put into operation during May, 2006. The total cost
of the 10 mw was Rs. 540.000 Millions which was funded by a term loan of Rs.
440.000 Millions and the balance out of the internal accruals of the company.
Hydel Power
Ching Project : The 1 mw Small Hydel Project, commissioned through the
subsidiary company Hateshwari Om Power Enterprises Private Limited, in March,
2005 is performing well and has been generating power at its rated
capacity.
Jakhi Project : The company is now envisaging another project of 1.50 mw
at village Jakhi, Shimla district, Himachal Pradesh, for which preliminary
water studies have been completed. The detailed project report will be shortly
submitted to the Himachal Government agencies seeking their approval for
commencing the implementation of the project, which is estimated to cost Rs.
95.000 Millions.
Nandakini Project : The company has signed the project development agreement
with Government of Uttranchal Pradesh for carrying out detailed investigations
and confirmatory surveys for 5.6 mw Nandakini-III hydro power project in the
state of Uttranchal Pradesh. The estimated cost of the project is Rs. 202.000
Milllions and shall generate around 34 million units of power annually. The
project is allotted for a period of 40 years and the implementation of the
project will commence once the confirmatory surveys, techno economic viability
studies are completed.
Outlook
The renewable power sector is poised for a significant growth in the
years to come. Indian Government has given substantial fillips to renewables
under the Electricity Act, 2003 and under the National Electricity Policy.
Majority of the state electricity boards of the country have been split up into
three separate entities, viz. policy makers, power generators and distributors,
thus ushering in more transparency and efficiency. The government proposes to
add at least 10% of the additional capacity from renewable sources by the year
2012. Further it aims to renewables to supply 10% of the total installed
capacity of 240,000 mw in the year 2012. This would mean significant growth
opportunities for wind and small hydro as they are presently at 9600 mw levels
and they have to add another 14600 mw in the next six years time.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
Industry Structure and Development
The healthy and balanced monsoon, inflation rate under check, increased in
foreign exchange reserve, resilient and organic growth by the manufacturing
sector, implementation of Value Added Tax (VAT) supplemented by positive
response by State Governments, boom in primary and secondary market, have all
augured well for the Indian Economy which has shown tremendous growth in year
2006. The Indian GDP grew at 8.4% in year 2005-2006 as compared to 7.50% in
year 2004-2005. Further agriculture sector has shown growth of 3.9% as against
0.7% in year 2004-2005, which is positive sign for the Company. The spurts in
oil and gas prices were effectively countered with significant increases in
forex inflows, thereby not allowing the deficit to adversely impact the
floating rupee. Inflation rate has been maintained at 5% despite the hike in
crude oil and commodity prices.
Company Performance
The booming Indian economy has had a favourable impact on the business of the
Company for the year 2005-06. The growth in economy has thrown up substantial
opportunities in the Company's core sectors of operation such as Trading,
Exports, Imports and power generation through wind farm projects, which has
helped the company perform well during the financial year 2005-2006.
Fixed Assets
v
Land
v
Building
v
Plant & Machinery
v
Office Equipment
v
Furniture & Fixture
v
Vehicles
v
Wind Turbine
v
Generators
As per Website Details
Vishal Exports was established in the year 1980 and has come a long way ever since. It now has a formidable presence in the international market.
Vishal Exports as a partnership firm held the status of 'Export House' in
1993-94. To strengthen its base in global trading, the partnership firm was
converted into a public limited company, and as a result of its continuous
growth and amazing achievements, in 1995-96 the company achieved the status of
'Star Trading House'.
The company has shown multifold growth over the years and has earned the
coveted STAR TRADING HOUSE status from the Government of India.
Vishal is determined to be counted among the front ranking Star Trading Houses
of India. It is committed to pushing the boundaries of excellence in every
sphere of its operations.
The Company has also been actively involved in the imports of goods and their
subsequent marketing in India. It has a strong relationship with various
related agencies, both in the domestic and the international business
environment.
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.44.28 |
|
UK
Pound |
1 |
Rs.86.64 |
|
Euro |
1 |
Rs.58.10 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
42 |
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 |
|