MIRA INFORM REPORT
|
Report Date : |
08.01.2007 |
IDENTIFICATION DETAILS
|
Name : |
VASAN
PUBLICATIONS PRIVATE LIMITED |
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Registered Office : |
New
No. 191, Old No. 757, Anna Salai, Chennai 600 002, Tamilnadu |
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Country : |
India
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
04.04.1946 |
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Com. Reg. No.: |
18-3197 |
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CIN No.: [Company Identification No.] |
U22121TN1946PTC003197 |
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TAN No.: [Tax Deduction & Collection Account No.] |
CHEV00309B |
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Legal Form : |
Private
Limited Liability Company |
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Line of Business : |
Publishers
of Weeklies |
RATING & COMMENTS
|
MIRAs Rating : |
A |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
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 225000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject
is a well established company having satisfactory track records. Financial
position is good. Trade relations are fair. Payments are correct & as per
commitments. The
company can be considered good for any normal business dealings at usual
trade terms & conditions. |
LOCATIONS
|
Registered Office &
Printing Press : |
New
No. 191, Old No. 757, Anna Salai, Chennai 600 002, Tamilnadu, India |
|
Tel. No.: |
91-44-2852 4054 / 64 / 74 /
84 and 94. |
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Fax No.: |
91-44-2852 3819 |
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E-mail : |
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Website : |
DIRECTORS
|
Name : |
Mr.
S. Blasubramanian |
|
Designation : |
Managing
Director |
|
Address : |
58,
3rd Main Road, Gandhinagar, Adyar, Chennai 600020, Tamilnadu,
India |
|
Date of Birth : |
28.12.1935 |
|
Date of Appointment : |
31.03.1965 |
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Date of Ceasing : |
22.11.1996 |
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Date of Reappointment : |
17.04.1997 |
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|
|
|
Name : |
Ms.
Saroja Balasubramanian |
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Designation : |
Director |
|
Address : |
58,
3rd Main Road, Gandhinagar, Adyar, Chennai 600020, Tamilnadu,
India |
|
Date of Birth : |
22.05.1938 |
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Date of Appointment : |
05.12.1987 |
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|
|
|
Name : |
Mr.
B. Srinivasan |
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Designation : |
Joint
Managing Director |
|
Address : |
58,
3rd Main Road, Gandhinagar, Adyar, Chennai 600020, Tamilnadu,
India |
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Date of Birth : |
08.11.1969 |
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Date of Appointment : |
10.09.1990 |
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|
|
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Name : |
Mr.
M. V. Kumar |
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Designation : |
Executive
Director |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
|
No. of Shares |
|
Mr.
S. Balasubramanian |
|
1035 |
|
Mr.
B. Srinivasan |
|
2065 |
|
Vasan
Print Products Private Limited |
|
1200 |
|
Ms.
Saroja Balasubramanian |
|
900 |
BUSINESS DETAILS
|
Line of Business : |
Publishers
of Weeklies |
|
|
|
|
Brands : |
·
Ananda Vikatan ·
Junior Vikatan ·
Aval Vikatan ·
Chutti Vikatan ·
Chitti Vikatan |
GENERAL INFORMATION
|
No. of Employees : |
400 |
|
|
|
|
Bankers : |
The
Vysya Bank Limited 185,
Mount Road, Chennai 600006 Dhanalakshmi
Bank Limited 104
& 107, Anna Salai, Chennai 600002 Canara
Bank, Teynampet Branch Chennai 600 018 |
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|
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Banking Relations : |
Satisfactory
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|
|
Auditors : |
Venkat
& Vasan Chartered
Accountants, Old
No. 27, New No. 44, Parangusapuram Street, Kodambakkam, Chennai 600024,
Tamilnadu, India |
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|
|
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Associates/Subsidiaries
: |
Gemini
Pictures Private Limited engaged in Film Production |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50,000 |
Equity
Shares |
Rs. 100/- Each |
Rs. 5.000 Millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5,200 |
Equity
Shares |
Rs. 100/- Each |
Rs. 0.520 Million |
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 |
0.520 |
0.520 |
0.520 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
56.314 |
38.106 |
33.945 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
56.834 |
38.626 |
34.465 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
58.070 |
37.460 |
44.748 |
|
|
2] Unsecured Loans |
1.821 |
5.772 |
2.623 |
|
TOTAL
BORROWING
|
59.891 |
43.232 |
47.371 |
|
|
DEFERRED TAX LIABILITIES |
8.469 |
8.175 |
5.093 |
|
Deferred Payment Liabilities
|
0.118 |
0.598 |
0.000 |
|
|
|
|
|
|
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TOTAL
|
125.312 |
90.631 |
86.929 |
|
|
|
|
|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
50.031 |
52.530 |
49.048 |
|
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
|
99.049
|
61.817
|
37.938
|
|
|
Sundry Debtors
|
63.924
|
44.859
|
47.731
|
|
|
Cash & Bank Balances
|
4.116
|
2.626
|
2.356
|
|
|
Other Current Assets
|
0.144
|
0.089
|
0.023
|
|
|
Loans & Advances
|
32.490
|
17.718
|
17.262
|
Total Current Assets
|
199.723
|
127.109
|
105.310
|
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities & provisions
|
124.442
|
89.923
|
69.334
|
Total Current Liabilities
|
124.442
|
89.923
|
69.334
|
|
Net Current
Assets
|
75.281
|
37.186
|
35.976
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.915 |
1.905 |
|
|
|
|
|
|
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TOTAL
|
125.312 |
90.631 |
86.929 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
469.363 |
378.153 |
290.772 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
29.977 |
9.651 |
6.911 |
Provision for Taxation
|
-- |
-- |
1.492 |
Profit/(Loss) After Tax
|
29.977 |
9.651 |
5.419 |
|
|
|
|
|
Export Value
|
NA |
NA |
1.273 |
|
|
|
|
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Import Value
|
NA |
NA |
110.247 |
|
|
|
|
|
Total Expenditure
|
439.386 |
368.502 |
267.043 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
PAT / Total Income
|
(%)
|
6.39
|
2.55
|
1.86 |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
6.39
|
2.55
|
2.37 |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total Assets} |
(%) |
12.00
|
5.37
|
4.47 |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
0.53
|
0.25
|
0.20 |
|
|
|
|
|
|
Debt Equity Ratio
(Total Liability/Networth) |
|
3.24
|
3.44
|
3.38 |
|
|
|
|
|
|
Current Ratio
(Current Asset/Current
Liability) |
|
1.60
|
1.41
|
1.51 |
LOCAL AGENCY FURTHER INFORMATION
Fixed
Assets :
·
Goodwill
·
Land
·
Building I
·
Building II
·
Well
·
Motor Cars/ Vehicles
·
Furniture
·
Plant & Machinery
·
Computer
|
Name of the company |
VASAN PUBLICATIONS LIMITED |
|
Presented By |
Vasan Publications Limited & The Vysya Bank
Limited, Mount Road Branch |
|
1) Date and description of
instrument creating the change |
1.
Agreement for hypothecation of stock in trade, machinery, book debts, bills
and all other movables dated 25.01.2002 2.
Two Term Loan Agreements both dated 25.01.2002 for two term loan facilities 3.
Agreement for the hypothecation of fixed assets dated 25.01.2002 4.
The deed of agreement of Hypothecation and guarantee for both LC and
Guarantee Limits both dated 25.01.2002 5.
Letter of Hypothecation dated 25.01.2002 6.
Letter of Hypothecation to secure time to time Trust loan against goods dt.
25.01.2002 7.
Letters confirming mortgage of immovable properties by deposit of title
goods. |
|
2) Amount secured by the
charge/amount owing on the securities of charge |
Cash
Credit Facility : Rs. 25.000 millions Term
Loan I : Rs. 22.600 millions Term
Loan II : Rs. 16.900 millions Import
/ Inland LC [DP or DA] : Rs. 30.000 millions [Sub Limit DA Rs. 20.000
millions] Bank
Guarantee : Rs. 2.000 millions Total : Rs. 96.500 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 |
1.
Exclusive first charge on the current assets [for the cash credit facility] 2.
Exclusive first charge on the current assets [for the Term Loan I] 3.
Exclusive first charge on the fixed assets, present & future [for the
Term Loan II] 4.
Exclusive first charge on the current assets [for the Import / Inland LC
facility] 5.
Exclusive first charge on the current assets [for the Bank Guarantee facility] Collateral
Security : 1. Equitable mortgage of land measuring about 14 grounds at 757,
Annal Salai, Chennai belonging to M/s. Progressive Builders, partners being
Mr. B. Srinivasan & Mr. S. Balasubramaniam directors of the company. 2.
Exclusive first charge on the fixed assets of the company, present and future
including land & building, plant & Machinery etc. 3.
Equitable mortgage of land measuring about 6 grounds and building thereon at
Gemini House, Gandhi Nagar, Adyar,
Chennai 30 in the name of the company 4.
Joint and several personal guarantees of Mr. B. Srinivasan, Mrs. Radikha
Srinivasan and Mr. S. Balsubramaniam |
|
4) Gist of the terms and
conditions and extent and operation of the charge. |
Cash Credit Facility : 1. Interest is PLR + 1.50% p.a.
[floating rate]. Margin is 25% on stocks and 30% against book debts. Limit
valid till 18.01.2003 Term Loan I Interest is PLR + 1.50% p.a. 2.
Repayment Principal : 20 equal quarterly installments of Rs. 1.130 millions
each with no holiday period. Interest
: Payable quarterly as and when debited 3. Upfront fee 1% of the limit [one
time basis] 4. Purpose : For meeting long term working capital requirements. Term Loan II Interest is PLR + 1.50% p.a. 2.
Repayment : Principal : 20 equal quarterly installments of Rs. 0.845 million
each with no holiday period. Interest : Payable Quarterly as and when debited
3. Upfront fee 1% of the limit [one time basis] 4. Purpose : for take over of
existing term loans with ICICI Bank, Dhanalakshmi Bank and Karur Vysya Bank Import/Inland LC : 1. Commission as per Bank / FEDAI
rates. Cash margin 10% in term deposits. 2. Sub limit for LC on DA Rs. 20
millions, Limit valid till 18.01.2003. 3. Purpose : Procurement of newsprint. Bank Guarantee : Commission as per Bank rates. Cash
Margin 10% in term deposits. Limit valid till 18.01.2003 2. Purpose : General
such as sales tax, customs duty etc |
|
5) Name and Address and
description of the person entitled to the charge. |
The Vysya Bank Limited 185, Mount Road, Chennai 600006 |
|
6) Date and brief description of instrument
modifying the charge |
Not
Applicable |
|
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. |
Not
Applicable |
|
Name of the company |
VASAN PUBLICATIONS LIMITED |
|
Presented By |
Vasan Publications Limited & Dhanalakshmi Bank
Limited, Anna Salai, Chennai 600002 |
|
1) Date and description of
instrument creating the change |
19.03.2001 Credit
facility arrangement letter [Annexure E] Letter
for deposit of title deeds from company to bank |
|
2) Amount secured by the
charge/amount owing on the securities of charge |
Short
term loan of Rs. 10 millions together with all applicable interest which may
be debited to an appropriate amount from time to time |
|
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 |
Equitable
mortgage of residential house property situated at No. 58, III Main Road,
Gandhi Nagar, Adayar, Chennai 600020 |
|
4) Gist of the terms and
conditions and extent and operation of the charge. |
Interest : PLR [13.5%] + 2.5% . Minimum 16% repayable in 24 monthly instalments First
installment to commence from 15.04.2001 This security shall be a continuing security for the
repayment of the short term loan Other terms and conditions to be adhered to as set
forth in the sanction letter dated 14.03.2001 |
|
5) Name and Address and
description of the person entitled to the charge. |
Dhanalakshmi Bank Limited 104 & 107, Anna Salai, Chennai 600002 |
|
6) Date and brief description of instrument
modifying the charge |
1.
Letter of Extension of mortgage by deposit of Title deeds of the company [As
per Annexure F] dated 07.01.2002 2.
Memorandum of Agreement dated 05.01.2002 3.
Bank Sanction letter dated 05.01.2002 4.
Company letter dated 05.01.2002 to Bank |
|
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. |
Short
term working capital limit of Rs. 10 millions sanctioned vide banks sanction
letter of 14.03.2001 has been enhanced to Rs. 11.500 millions vide sanction
letter dated 05.01.2002. The
enhancement of Rs. 1.500 millions is at 16% interest, [fixed], bullter
re-payment with interest on or before 31.03.2002 to meet short term working
capital requirements. Charge on
companys property at No. 58, III Main Road, Gandhi Nagar, Adayar, Chennai
20, registered with Registrar of Companies on 2.4.2001 is extended to cover
this enhancement also. All other
terms and conditions as per sanction letter dated 05.01.2002 and as stated in
documents executed listed in Sl. No. 6 above |
Form
8 Particular for creation or modification of charges
|
Corporation
identity number or foreign company registrations number of the company |
U22121TN1946PTC003197 |
|
Name
of the company |
VASAN
PUBLICATIONS PRIVATE LIMITED |
|
Address |
New
No. 191, Old No. 757, Anna Salai, Chennai 600 002, Tamilnadu |
|
This
Form is for |
Modification of charge |
|
Type
of Charges |
Book debts, Floating charge and others |
|
Particular
of the charge holder |
Canara Bank Teynampet Branch, Anna Salai, Chennai 600018,
Tamilnadu, India E-mail : chn0416@canbank.co.in |
|
Nature
or description of the instrument creating charge |
Supplemental Agreement |
|
Date
of the instrument creating charge |
08.11.2006 |
|
Amount
Secure by the charge |
Rs. 87.000 millions |
|
Brief
of the principal terms and conditions and extent and operation of the charge |
10.25% [Rate of interest is subject to change by
the Bank from time to time] Term of Repayment : As per the agreement Margin : As per the agreement Extent and operation of the charge : Exclusive
first charge Others : All other terms and conditions as per
the agreement |
|
Particulars
of the Property charged |
All the existing securities viz all types of
stocks, whole of book debts and receivables, machinery including those
acquired and or to be acquired out of the enhanced / modified credit limits
more fully described in schedule c to the agreement enclosed. This is in addition to all other existing
securities. |
|
Particulars
of the present modification |
Change amount of the above securities enhanced to
Rs. 87 millions comprising OCC / ODBD Rs. 50 millions, LC Rs. 35
millions, BG Rs. 2 millions and secured by all existing securities
including those acquired out of enhanced credit limits. The other terms and conditions of the
original charge remain unchanged. |
|
Name of the company |
VASAN PUBLICATIONS PRIVATE LIMITED |
||||||||||||||||||
|
Presented By |
Vasan Publications Private Limited & Canara
Bank, Teynampet, Chennai |
||||||||||||||||||
|
1) Date and description of
instrument creating the change |
22.09.2005
Date of deposit of the title deeds Equitable
mortgage by deposit of title deeds letter evidencing deposit of title deeds
dt. 23.09.2005 is also enclosed |
||||||||||||||||||
|
2) Amount secured by the
charge/amount owing on the securities of charge |
Rs.
87.000 millions comprising Rs. 67.000 millions made available to Vasan
Publications Private Limited and Rs. 20.000 millions made available to
Vikatan Tele Vistas Private Limited together with interest, cost, charges and
other expenses which may be debited to the account from time to time |
||||||||||||||||||
|
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 |
Exclusive
charge by way of equitable mortgage of Agricultural land measuring 228.50
cents in survery no. 161/a/1, 161/A/1B [New survey No. 160-B [Part] &
160/B/1A [New survey No. 160-B [Part], 160/B/1B [New Survey No. 160-B [Part],
160/B/C [New survey no. 160-B [Part] Kilambakka, Kattankulathur Panchayat
Union, Oorapakkam Panchayat, Chennai morefully described in LEDTD, standing
the name of M/s. Vasan Publications Private Limited including all that piece
and parcel of land together with all buildings, structures, fixtures,
fittings, machineries standing / installed thereon and to be erected /
installed and to be put up in future, detailed as under :
|
||||||||||||||||||
|
4) Gist of the terms and
conditions and extent and operation of the charge. |
The above landed properties are taken as a
collateral security for an amount of Rs. 87.000 millions comprising Rs.
67.000 millions made available to Vasan Publications Private Limited and Rs.
20.000 millions made available to Vikatan Tele Vistas Private Limited
together with interest, cost, charges and other expenses which may be debited
to the account from time to time |
||||||||||||||||||
|
5) Name and Address and
description of the person entitled to the charge. |
Canara Bank Teynampet Branch, Chennai |
||||||||||||||||||
|
6) Date and brief description of instrument
modifying the charge |
- |
||||||||||||||||||
|
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. |
- |
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 Intl 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
companys 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.44.30 |
|
UK
Pound |
1 |
Rs.85.83 |
|
Euro |
1 |
Rs.57.92 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
58 |
This score
serves as a reference to assess SCs 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 |