MIRA INFORM REPORT
|
Report Date : |
27.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
SAKTHI AUTO COMPONENTS LIMITED |
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Registered Office : |
180, Race Course
Road, Coimbatore – 641 018 |
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Country : |
India |
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Financials (as on) : |
31.06.2006 |
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Date of Incorporation : |
19.02.1999 |
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Com. Reg. No.: |
18-8751 |
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CIN No.: [Company Identification No.] |
U29199TZ1999PLC008751 |
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TAN No.: (Tax Deduction & Collection Account No.) |
CMBS03285C/CMBS03522B/CMBS03276A |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Manufacturers,
Importers and Exporters of SG Iron Castings and GI Iron Castings. |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
RATING
|
STATUS |
PROPOSED
CREDIT LINE |
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|
26-40 |
B |
Unfavourable & favourable factors carry
similar weight in credit consideration. Capability to overcome financial
difficulties seems comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
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Status : |
Moderate |
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Payment Behaviour : |
Slow by average 30 days |
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Litigation : |
Unknown |
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Comments : |
Subject is an established company but profit margin is insignificant. Financial position is poor. Payments are reported as slow and delayed. The company can be considered for small to mediocre business dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered/ Head Office : |
180, Race Course
Road, Coimbatore – 641 018, India |
|
Tel. No.: |
91-422-5322222/
2221551/2221552/ 2221553/ 2221554 |
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Fax No.: |
91-422-2220574/5322488/
2220329 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Factory 1 : |
Mukasi Palligoundanpalayam, Perundurai Taluk, Erode – 638056, India |
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Tel. No.: |
91-422-5322222/2221551/2221552/2221553/2221554 |
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Fax No.: |
91-422-2220574/5322488 |
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E-Mail : |
SOLE
PROPRIETOR/PARTNERS/DIRECTORS
|
Name : |
Mr. A Alagappan |
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Designation : |
Chairman |
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Address : |
16A Kambar Street,
Mahalingapuram, Pollachi - 642001 |
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Date of Birth/Age : |
09.12.1934 |
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Name : |
Mr. M.
Balasubramanam |
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Designation : |
Director |
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Address : |
6 NKPM Layout,
Red Fields, Coimbatore - 641018 |
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Date of Birth/Age : |
03..12.1966 |
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Name : |
Mr. M. Manickam |
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Designation : |
Managing Director |
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Address : |
25 Rukmani Nagar,
Coimbatore - 641045 |
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Date of Birth/Age : |
24.03.1956 |
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Name : |
Mr. S.
Chandrasekar |
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Designation : |
Director |
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Date of Birth/Age : |
03.12.1966 |
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Name : |
Mr. M. Srinivasan |
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Designation : |
Director |
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Address : |
164 Tea Estate
Compound, Coimbatore – 641018 |
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Date of Birth/Age : |
02.09.1966 |
|
Name : |
Mr. B R
Krishnakumar |
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Designation : |
Director |
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Address : |
B15 Avinash
Apartments, Bharathi Colony, Coimbatore – 641004 |
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Date of Birth/Age : |
25.08.1956 |
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Name : |
Mr. M. Padavattan |
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Designation : |
Director |
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Address : |
742 Krishna Temple
Road, Indira Nagar, Bangalore – 5600038, Karnataka |
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Date of Birth/Age : |
09.05.1947 |
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Name : |
Ms. Smita Gune |
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Designation : |
Director, Nominee
of ICICI |
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Address : |
Bandra Kurla
Complex, Mumbai – 400051, Maharashtra |
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Date of Birth/Age : |
15.04.1958 |
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Name : |
Mr. S. Kishore |
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Designation : |
Director |
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Address : |
23/3 Sampoorna
Mansions, Fifth Main Road, Malleswaram, Bangalore – 560003, Karnataka |
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Date of Birth/Age : |
03.03.1966 |
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Name : |
Mr. E.S.
Ravisekar |
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Designation : |
Director |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
|
Mr. A. Alagappan |
101 |
|
Mr. S.
Chandrasekar |
101 |
|
Mr. M. Manickam |
101 |
|
Mr. T. Rajkumar |
101 |
|
Mr. P. Srinivasan |
101 |
|
Mr. N. Mahalingam |
101 |
|
Sakthi Sugars
Limited |
155,28,244 |
|
ICICI |
50,00,000 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers,
Importers and Exporters of SG Iron Castings and GI Iron Castings. |
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Products : |
v Steering Knuckles v Brake Drums v Hubs v Brake Discs v Brake Calipers v Carriers v Differential Cases v Manifolds |
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Exports to : |
U.S.A. |
PRODUCTION STATUS
|
Particulars |
Unit |
|
|
Actual Production |
|
S G Iron Castings
|
Tonnes |
|
|
9,310.80 |
|
G I Iron Castings
|
Tonnes |
|
|
5,830.89 |
GENERAL
INFORMATION
|
Customers : |
v Industrial Products International Inc.
U.S.A. v Maruti Udyog Limited, Haryana, India v Delphi Automotive Systems Limited, Uttar
Pradesh, India v Hyundai (ILJIN) Automotive Private
Limited, Chennai, Tamilnadu, India v Honda Siel Cars (India) Limited,
Uttarpradesh, India v Sono Koyo Steering Systems (Maruti)
Limited, Haryana, India v Ind Auto Limited, Mumbai, Maharashtra,
India v Tractors and Farm Equipment Limited, Chennai, Tamilnadu, India |
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No. of Employees : |
2000 |
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Bankers : |
v Canara Bank v Lakshmi Vilas Bank v Shamrao Vithal Co-operative Bank Limited v ICICI Limited v SBI Factors and Commercial Services Private Limited |
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Facilities : |
Subject enjoys
following facilities from its bankers: Year 30.06.2003 Loans Granted: v
A factoring
loan of RS. 40.000 millions has been granted against hypothecation of book
debts and assets. v A loan for supply bills purchase limit of Rs. 30.000 millions has been granted against hypothecation of book debts. |
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Banking Relations
: |
Unknown |
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Auditors : |
P N Raghavendra
Rao and Company Chartered Accountants |
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Address: |
33, Deshabandu
Street, Ram Nagar, Coimbatore – 641009 |
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Tel. No.: |
91-422-232440/236997 |
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Fax No.: |
91-422-230395 |
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Associates/Subsidiaries : |
v Sakthi Sugars Limited, 180, Race Course
Road, Coimbatore – 641018, India Tel.No: 91-422-2221551/2221552/2221553/2221554/5322222 Fax No: 91-422-2220574/5322488 v Sakthi Sugars Limited – Soya Division,
180, Race Course Road, Coimbatore – 641018, India Tel.No: 91-422-5322222/ 2221551-4 Fax No: 91-422 2220574/5322488 v ABT Limited, 180, Race Course Road,
Coimbatore – 641018, India Tel.No: 91-422-5322222/2221551-4 Fax No: 91-422-2220574/5322488 v Anamallais Engineering Private Limited,
180, Race Course Road, Coimbatore – 641018, India Tel.No: 91-422-5322222/2221551-4 Fax No: 91-422-2220574/5322488 v Sakthi Finance Limited, 180, Race Course
Road, Coimbatore – 641018, India Tel.No: 91-422-5322222/22221551-4 Fax No: 91-422-2220574/5322488 v ABT Limited – ABT Parcel Service Division,
180, Race Course Road, Coimbatore – 641018, India Tel.No: 91-422-5322222/2221551-4 Fax No: 91-422-2220574/5322488 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,60,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 160.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1,55,28900 |
Equity Shares |
Rs. 10/- each |
Rs. 155.289 millions |
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
155.300 |
155.300 |
155.300 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
100.400 |
113.100 |
169.000 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
255.700 |
268.400 |
324.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1203.700 |
1185.700 |
1160.500 |
|
|
2] Unsecured
Loans |
189.000 |
186.800 |
143.300 |
|
TOTAL BORROWING
|
1392.700 |
1372.500 |
1303.800 |
|
|
DEFERRED TAX
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
TOTAL
|
1648.400 |
1640.900 |
1628.100 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
1553.000 |
1451.900 |
1402.900 |
|
Capital work-in-progress
|
31.500 |
78.800 |
0.100 |
|
|
|
|
|
|
|
INVESTMENT
|
31.400 |
0.400 |
0.400 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
353.900
|
310.000
|
262.900 |
|
|
Sundry Debtors
|
357.900
|
276.900
|
185.300 |
|
|
Cash & Bank Balances
|
100.100
|
62.200
|
41.300 |
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances
|
205.100
|
287.600
|
264.700 |
Total Current Assets
|
1017.000
|
936.700
|
754.200 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
1038.800
|
892.500
|
593.500 |
|
|
Provisions
|
0.300
|
0.300
|
0.000 |
Total Current Liabilities
|
1039.100
|
892.800
|
593.500 |
|
Net Current Assets
|
(22.100)
|
43.900
|
160.700 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
54.600 |
65.900 |
64.000 |
|
|
|
|
|
|
|
TOTAL
|
1648.400 |
1640.900 |
1628.100 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
|
|
Sales Turnover |
1446.800 |
1273.200 |
1008.600 |
|
|
Other Income |
27.900 |
41.500 |
18.600 |
|
|
Total Income |
1474.700 |
1314.700 |
1027.200 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
(12.500) |
(35.600) |
(74.500) |
|
|
Provision for Taxation |
0.000 |
(1.800) |
(22.800) |
|
|
Profit/(Loss) After Tax |
(12.500) |
(33.800) |
(51.700) |
|
|
|
|
|
|
|
|
Total Earnings |
218.537 |
NA |
NA |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
1.846 |
NA |
NA |
|
|
Stores & Spares |
7.613 |
NA |
NA |
|
|
Capital Goods |
23.625 |
NA |
NA |
|
|
Others |
33.084 |
NA |
NA |
|
Total Imports |
66.168 |
NA |
NA |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
|
|
|
|
|
Manufacturing Expenses |
337.700 |
274.400 |
199.200 |
|
|
Administrative Expenses |
166.300 |
121.000 |
90.700 |
|
|
Raw Material Consumed |
321.000 |
302.500 |
204.400 |
|
|
Miscellaneous Expenses |
25.000 |
21.300 |
19.300 |
|
|
Salaries, Wages, Bonus, etc. |
52.100 |
48.100 |
36.900 |
|
|
Interest |
158.100 |
181.300 |
182.000 |
|
|
Power & Fuel |
163.800 |
177.100 |
176.700 |
|
|
Depreciation & Amortization |
96.700 |
83.600 |
74.700 |
|
|
Other Expenditure |
166.500 |
141.000 |
117.800 |
|
Total Expenditure |
1487.200 |
1350.300 |
1101.700 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.09.2006 (1st
Qtr.) |
31.12.2006 (2nd
Qtr.) |
|
Sales
Turnover |
|
454.600 |
363.000 |
|
Other Income |
|
4.100 |
2.300 |
|
Total Income |
|
458.700 |
365.300 |
|
Total
Expenditure |
|
387.900 |
297.000 |
|
Operating
Profit |
|
70.800 |
68.300 |
|
Interest |
|
37.900 |
38.200 |
|
Gross Profit |
|
32.900 |
30.100 |
|
Depreciation |
|
25.200 |
27.200 |
|
Tax |
|
0.000 |
0.000 |
|
Reported PAT |
|
7.700 |
2.900 |
KEY RATIOS
|
PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
|
Debt-Equity Ratio |
5.28 |
4.52 |
3.50 |
|
Long Term Debt-Equity Ratio |
4.21 |
3.82 |
2.97 |
|
Current Ratio |
0.78 |
0.89 |
0.92 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.78 |
0.76 |
0.65 |
|
Inventory |
4.36 |
4.44 |
4.07 |
|
Debtors |
4.56 |
5.51 |
6.55 |
|
Interest Cover Ratio |
0.92 |
0.80 |
0.59 |
|
Operating Profit Margin(%) |
16.75 |
18.01 |
18.06 |
|
Profit Before Interest And Tax Margin(%) |
10.06 |
11.44 |
10.66 |
|
Cash Profit Margin(%) |
5.82 |
3.91 |
2.28 |
|
Adjusted Net Profit Margin(%) |
(0.86) |
(2.65) |
(5.13) |
|
Return On Capital Employed(%) |
0.00 |
0.00 |
0.00 |
|
Return On Net Worth(%) |
0.00 |
0.00 |
0.00 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.0.00/- |
|
Low |
Rs.0.00/- |
LOCAL AGENCY
FURTHER INFORMATION
OPERATIONS
During the year under review, the Company has achieved a turnover of
Rs.1446.826 millions (Rs.1273.207 millions) which is 13.63% higher than that of
the previous financial year.
The demand for castings and auto components was bright. M/s. General Motors
have identified our foundry as one of the major sources for their requirement
of steering knuckles for supply to their plants at India, Thailand and Korea.
Orders have been received from Sweden for supply of Air Brake Calipers for the
requirement of the heavy vehicles. The Directors are glad to inform that
Foundry has been awarded First prize of the State Safety Award for 2003 and
2004 under Group B Category by Inspectorate of Factories, Chennai.
IDBI has withdrawn its Nominee Director Sri E S Ravisekar with effect from
7.1.2006. The Directors wish to place on record their appreciation of the
valuable services rendered by him during the tenure of his office as Director.
Sri S Chandrasekar and Sri M Srinivaasan, Directors, retire by rotation at the
ensuing Annual General Meeting and are eligible for reappointment.
SUBSIDIARY COMPANY
The Directors informed that the Company has acquired 51.83% in the equity share
capital of Bonomi Belgium Ventiel India Private Limited. In view of the
acquisition of controlling interest in the above company, it has become a
subsidiary of the Company. The name of Bonomi Belgium Ventiel India Private
Limited has been changed as Sakthi Auto Ancillary Private Limited.
ISSUE OF SHARES
The authorised share capital has been increased to Rs.350.000 millions. The
company has issued and allotted 1,50,00,000 equity shares of Rs. 10 each at a
premium of Rs. 20 per share to Sakthi Sugars Limited, the holding company
during the current year.
FOREIGN EXCHANGE
EARNINGS AND OUTGO
Activities relating to exports; initiatives taken to increase exports;
development of new export markets for products and services; and export plans;
The value of export made during the year is Rs.244.323 millions. The company is
holding discussions with overseas car manufacturers / dealers of automobile
components to improve its export.
Foreign Exchange earned during the year 218.537 millions
Import:
Capital Goods 23.625
Raw Materials 1.846
Spares and Repairs 7.613
330.84
Website Details :
Subject is a major supplier of critical components to
passenger car manufacturers. The components are Steering knuckles, Brake drums, Brake discs, Hubs, Brake calipers,
Carriers, Differential cases and Manifolds
etc.
Presently the supplies of these components are made to Maruti Udyog Limited, Hyundai, Ind Auto
Limited, Ford, Honda Siel Cars and Tractors and farm Equipment Limited etc, Castings
meant for trucks and refineries are exported to USA. The quantum of exports per
month ranges between 250 MT to 500 MT. It is likely to go up to 1000 MT in near
future.
Subject has been awarded the industrial safety awards for
three consecutive years. It has also been recognized by Maruti Udyog Limited as
a First class critical Component Vendor
The latest technology is leveraged to the hilt with people
whose inherent strengths lie in the winning attitude and the willingness to
thrive on challenges. This forms the foundation of an organization that races
into the future with the surging confidence that it would continue to
contribute and touch the lives of many more people.
Subject is one among the multi faceted Sakthi Group situated at
Mukasi Pallagoundenpalayam, Erode District, Tamilnadu State, India, established
in the year 1983. Presently the subject has a capacity to produce 24000 Tones / annum of S.G.IRON
Castings, on a 100 Acre Land with all amenities for Workmen and Officers like
Housing, Transport etc. Subject is one of the major producers of S. G. Iron
Castings, meeting the needs of most of the Automotive and other general
Engineering Industries.
Supplying most critical
components like Steering
Kunckle, Brake Drums and Manifolds
for all Suzuki Vehicles, Manufactured
in India by Maruti Udyog Limited at New Delhi and to many leading passenger car
manufacturers in fully machined condition.
R&D Lab is attached to the
subject with modern computerized equipments like Direct Reading Spectrometer, Carbon
Sulphur determination, Universal Testing Machine, Scanning Electron Microscope,
Industrial X-RAY Scanner etc.
Subject is equipped with Disamatic Foundry with the state of the art manufacturing
technology which is regarded as the best anywhere in the World and equipped
with many sophisticated special purpose and CNC machines to produce precision
oriented component for passenger car and automobile industries.
The Moulding line which has been
supplied by DISA Technologies of
Denmark, is one of their latest and most efficient moulding line. It has
the capacity to produce 440 flawless moulds / hour. This would ensure closer
tolerance and low rejection rates. It has Automatic Pouring Unit procured from Asea Brown Boveri Limited and it maintains
the consistency in the metal temperature. Technical collaboration for melting
technology has been entered into with George
Fisher Foundry Systems, Switzerland, who are the world leaders for
manufacturing various precision components for the Automobile Industries.
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.44.20 |
|
UK Pound |
1 |
Rs.86.72 |
|
Euro |
1 |
Rs.58.23 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
29 |
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 |
|
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