MIRA
INFORM REPORT
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Report Date : |
18.07.2007 |
IDENTIFICATION DETAILS
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Name : |
BENNETT COLEMAN AND COMPANY LIMITED |
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Registered Office : |
The Times of |
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Country : |
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Financials (as on) : |
31.07.2006 |
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Date of Incorporation : |
29.11.1913 |
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Com. Reg. No.: |
11-391 |
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CIN No.: [Company
Identification No.] |
U22120MH1913PLC000391 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMB11162E |
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Legal Form : |
Closely Held Public Limited Liability Company |
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Line of Business : |
Printing and Publishing of newspapers and periodicals and also in carrying on the business of Investment and Lending. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 110000000 |
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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 one of the oldest and highly respected Publishing Houses in the country. Available information indicates very high financial responsibility of the company and its management. Their trade relations are fair. Fundamentals are very strong. The company is faring exceedingly well, as gathered from the management during a recent meeting with them. Their payments are always correct and as per commitments. The company can be considered good for normal business dealing at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
The Times of |
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Tel. No.: |
91-22-22731271/ 22620271 / 56353535 |
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Fax No.: |
91-22-22731482/ 22620144/ 22620401 / 22731737 |
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E-Mail : |
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Website : |
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Printing Press : |
Times of |
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Sales Office : |
v
v
v
v
v
v
v
v
v Bhubaneshwar, Orissa v
v
v
v
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Overseas Office : |
v
P. B. No. 576, |
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Branches : |
Located at: - v
“Times House”, 7 Bahadurshah Zafar Marg, v
v
105/7-A,
v
88, v
8-9 Anupam Chambers, v
“Times House”, v
“ v
407-1 Tirath Bhavan, Nanapeth, Quartergate,
Pune – 411 002, v
1-10-72/A2,
Begumpet, |
DIRECTORS
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Name : |
Mr. Samir Jain |
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Designation : |
Vice-Chairman
& Managing Director |
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Address : |
15, Moti Lal
Nehru Marg, |
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Date of Birth/Age : |
22.06.1954 |
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Qualification : |
B.A. |
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Date of Joining : |
01/02/1985 |
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Name : |
Mr. Vineet Jain |
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Designation : |
Managing Director |
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Address : |
15, Moti Lal
Nehru Marg, |
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Date of Birth/Age : |
12.02.1966 |
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Qualification : |
MBA (Marketing) |
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Experience : |
16 years |
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Date of Joining : |
27.06.1993 |
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Name : |
Mr. Narendra Kumar |
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Designation : |
Director |
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Address : |
One – Crooked
Lane, Kolkata – 700069, West |
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Date of Birth/Age : |
08.05.1935 |
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Date of Joining : |
12.09.1964 |
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Name : |
Dr. Ram S. Tarneja |
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Designation : |
Director |
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Address : |
4 – Pashmina,
33-A, |
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Date of Birth/Age : |
07/12/1931 |
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Date of Joining : |
01/05/1981 |
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Name : |
Mr. Ravindra
Dhariwal |
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Designation : |
Director |
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Address : |
Aashray Farm,
Khasra No. 1523, Asola Village, New Delhi – 110030, Delhi |
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Date of Birth/Age : |
11/09/1952 |
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Date of Joining : |
01/01/2002 |
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Name : |
Richard Blaise
Saldanha |
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Designation : |
Director |
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Address : |
C-309, Defence
Colony, |
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Date of Birth/Age : |
03/02/1944 |
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Date of Joining : |
01/06/2002 |
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Name : |
Mr. Vijay Gopal Jindal
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Designation : |
Director |
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Address : |
B-87, Greater
Kailash Part – I, |
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Date of Birth/Age : |
08/03/1957 |
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Date of Joining : |
05/12/2002 |
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Name : |
Mr. Ram Krishna
Lakshman |
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Designation : |
Director |
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Address : |
Flat No. 2, |
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Date of Birth/Age : |
24/07/1932 |
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Date of Joining : |
29/03/2005 |
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Name : |
Mr. Satish Kumar
Mehta |
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Designation : |
Director |
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Address : |
A-93, Neeti Bagh,
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Date of Birth/Age : |
02/02/1933 |
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Date of Joining : |
29/03/2005 |
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Name : |
Mr. Padmakar
Manjunath Rao |
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Designation : |
Director |
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Address : |
702-Vasundhara,
Janki Kutir, Juhu, Mumbai 400049, |
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Date of Birth/Age : |
23/05/1953 |
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Date of Joining : |
02/06/1997 |
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Name : |
Mr. Aditya Mittal
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mrs. Indu Jain |
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Designation : |
Chairperson |
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Address : |
4 Tilak Marg, |
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Date of Birth/Age : |
08/09/1936 |
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Date of Joining : |
13/05/1999 |
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Name : |
Mr. P. M. Rao |
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Designation : |
Company Secretary
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Name : |
Mr. Arun Arora |
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Designation : |
President |
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Address : |
34, |
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Qualification
: |
B.Sc. (Engg.) |
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Date of Birth/Age : |
08/08/1945 |
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Date of Joining : |
23/07/1996 |
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Name : |
Mr. Pradeep Guha |
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Designation : |
President |
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Date of Birth/Age : |
53 years |
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Qualification
: |
B A |
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Experience : |
30 years |
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Date of Joining : |
20.12.1976 |
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Name : |
Mr. V G Jindal |
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Designation : |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Sanmati
Properties Limited |
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3109000 |
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Bharat Nidhi
Limited |
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7782400 |
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PNB Finance and
Industries Limited |
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2962872 |
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Mr. Vineet Jain |
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182472 |
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Mr. Samir Jain |
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800 |
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Mera Jain |
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104800 |
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CAMAC Commercial
Company Limited |
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4240172 |
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Arth Udyog
Limited |
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2968872 |
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Punjab Properties
Limited |
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2848000 |
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T M Investments
Limited |
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1899224 |
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Ashok Viniyoga Limited
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5745324 |
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Trishla Jain |
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40000 |
BUSINESS DETAILS
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Line of Business : |
Printing and Publishing of newspapers and periodicals and also in carrying on the business of Investment and Lending. |
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Products : |
Print Media Electronic Media Investment and lending |
GENERAL INFORMATION
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No. of Employees : |
Several 1000 |
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Bankers : |
v
United Bank of v HDFC Bank Limited, Mumbai v
Bank of v
Bank of v Punjab National Bank, Mumbai v Indian Bank, Mumbai v Deutsche Bank, Mumbai v Standard Chartered Grindlays Bank, Mumbai v Standard Chartered Bank, Mumbai v BNP Paribas, Mumbai v Banque Nationale De Paris v Citibank NA, Mumbai v HSBC |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Lodha & Company Chartered Accountants |
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Associates/Subsidiaries : |
v Dharmayug Investments Limited v Vardhman Publishers Limited v Satyam Properties & Finance Limited v Rajdhani Printers Limited v Times Guaranty Limited v Sushena Investments Limited v Kaladi Investments Limited v Surge Enterprises Limited v Banhem Financial & Investment Consultants Private Limited v Asha Properties Limited v Rishi Properties Limited v Chiranji Properties Limited v Aravalli Properties Limited v Bennett Securities Limited v Times Internet Limited v 21st Century Constructions Private Limited v
Entertainment Network ( v Times Online Money Limited v Times Infotainment India Limited v Fabwoman.Com Infotech Private Limited v Brand Qulver Limited (formerly Brand Dot Com Limited) v Digital World v Netcarrots.com Private Limited v Times Guaranty Limited v Optimal Global Brodcasting company limited (Formerly Times Television Limited) v Optimal Media Solutions Private Limited (Formerly Fabwoman.com Infotech Private Limited) |
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Associates : |
Netcarrots.com Private limited |
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Joint Venture : |
Worldwide Media Limited (Formerly Magz International Limited) |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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50,000,000 |
Ordinary Shares |
Rs.10.00 each |
Rs.500.000 millions |
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1,500,000 |
Unclassified Shares |
Rs.100.00 each |
Rs.150.000 millions |
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Total |
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Rs.650.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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31,880,000 |
Equity Shares |
Rs. 10.00 each |
Rs.318.800 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.07.2006 |
31.07.2005 |
31.07.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
318.839 |
318.839 |
318.839 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
28176.200 |
23799.333 |
18244.348 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
28495.039 |
24118.172 |
18563.187 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
|
335.253 |
408.899 |
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TOTAL |
28495.039 |
24453.425 |
18972.086 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
13299.700 |
4411.249 |
3713.449 |
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Capital work-in-progress |
0.000 |
2856.943 |
609.370 |
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INVESTMENT |
13912.600 |
14689.947 |
12994.203 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
4632.300
|
3213.787 |
2131.095 |
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Sundry Debtors |
1302.100
|
965.090 |
579.881 |
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Cash & Bank Balances |
411.000
|
808.619 |
700.754 |
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Other Current Assets |
0.000
|
15.556 |
9.024 |
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Loans & Advances |
11219.300
|
1676.030 |
1005.030 |
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Total
Current Assets |
17564.700
|
6679.082 |
4425.784 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
9752.900
|
4032.799 |
2639.716 |
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Provisions |
6529.100
|
150.997 |
131.004 |
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Total
Current Liabilities |
16282.000
|
4183.796 |
2770.720 |
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Net Current Assets |
1282.700
|
2495.286 |
1655.064 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
28495.039 |
24453.425 |
18972.086 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.07.2006 |
31.07.2005 |
31.07.2004 |
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Sales Turnover |
26967.000 |
23634.839 |
19819.769 |
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Other Income |
1394.700 |
0.000 |
0.000 |
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Stock Adjustments |
89.800 |
0.000 |
0.000 |
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Total Income |
28451.500 |
23634.839 |
19819.769 |
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Profit/(Loss) Before Tax |
6438.800 |
7641.630 |
6923.619 |
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Provision for Taxation |
2040.00 |
2343.454 |
1831.836 |
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Profit/(Loss) After Tax |
4398.800 |
5298.176 |
5091.783 |
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Export Value
|
NA |
6545.850 |
3798.139 |
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Import Value
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NA |
390.424 |
332.324 |
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Expenditures : |
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Raw
Material Consumed
|
9857.300
|
0.000 |
0.000 |
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Power
& Fuel
|
363.900
|
0.000 |
0.000 |
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Other Manufacturing Expenses
|
2188.500
|
0.000 |
0.000 |
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Employee Cost
|
3311.800
|
0.000 |
0.000 |
|
|
Selling and Administration
Expenses
|
2489.600
|
0.000 |
0.000 |
|
|
Miscellaneous Expenses
|
2863.000
|
0.000 |
0.000 |
|
|
Interest and Financial Charges
|
30.400
|
0.000 |
0.000 |
|
|
Depreciation & Amortization
|
908.200
|
0.000 |
0.000 |
|
|
Other Expenditure
|
0.000
|
15993.209 |
12896.150 |
Total Expenditure
|
22012.700 |
15993.209 |
12896.150 |
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KEY RATIOS
|
PARTICULARS |
|
31.07.2006 |
31.07.2005 |
31.07.2004 |
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PAT / Total Income |
(%) |
15.46
|
25.69 |
19.89 |
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Net Profit Margin (PBT/Sales) |
(%) |
23.88
|
34.93 |
28.23 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
20.86
|
85.06 |
54.76 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.23
|
0.37 |
0.33 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.57
|
0.15 |
0.24 |
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|
Current Ratio (Current Asset/Current Liability) |
|
1.08
|
1.60 |
11.88 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Subject was incorporated on 29th November, 1913
at Mumbai in
The first edition of The Bombay Times and Journal of Commerce, later to be called The Times of India, was launched in Mumbai in 1838. After several years of change, evolution and growth in the paper’s character, the company, the proprietors of the Times of India Group, was established with the principal objective of publishing newspapers, journals, magazines and books.
Today, the company is
In April 2000, Times Internet Limited, a wholly owned subsidiary of the company, was floated to handle the Group’s internet properties. Times Internet Limited’s mother brand is Indiatimes.
The Times of
The Times of India is the flagship brand of the Group. It
is
The Economic Times
The Economic Times, started in 1961, is
Navbharat
Times
Navbharat Times, launched in 1950, is a widely read and
influential Hindi daily. It is published from
Maharashtra Times is a Marathi Newspaper published from Mumbai. It has a circulation of over 2,00,000 copies, and a readership of over million.
Filmfare
Filmfare has involved as an entertainment medium in itself. The monthly magazine covers the gamut of happenings in show biz., including movies, music and television. Gossip, interviews, previews, reviews, profiles – its’ all there. The magazine also sponsors the annual Filmfare awards for excellence in Indian cinema.
Femina
The No. 1 women’s magazine in
Indiatimes
Indiatimes.com is
It publishes and distributes The
Times of India and The Sunday Times of India, in addition to the magazines like
Femina and Filmfare. It thrives in the face of stiff competition from The
Statesman, The Telegraph, The Hindustan Times and The Hindu. It is the paper of
the
Subject is the proprietor of “The Times of India” Group of
Publications. It has been in the publishing business for over 150 years and has
come to acquire a reputation reporting credible, analyzed and unbiased news.
The flagship daily of the company “The Times of
It is also publishes from
Mr. Dileep Padagaonkar, is now the Executive Editor. It has
certain special features. The front page left hand column gives the News
Digest, which tells the reader at a glance about the important news of the day.
In the same column there is Cartoon by Laxman, and below it is the weather for
the day. Then there is the Indiatimes.com POLL. Below the masthead, there are
highlights under International,
Generic Names of Principal products / Services of the Company are:
v Print Media
v Electronic Media
v Investment and Lending
The company's fixed assets of important value include Land, Leasehold Land & Buildings, Buildings, Plant and Machinery, Vehicles, Furniture, Fixtures and Office Equipments
FIXED ASSETS
Ø Land (Leased and Freehold)
Ø Land and Building (Leased and Freehold)
Ø Building
Ø Plant and machinery
Ø Furniture and Fixture And Office equipments
Ø Vehicles
Ø Drawing and Business commercial rights
Press Release
Times group acquires
4.98% in Pantaloon
Their Corporate Bureau
7 January 2005
Mumbai: Pantaloon Retail India has sold a 4.98 per cent (953,000 shares) of its stake preferentially to Bennett, Coleman and Company (BCCL) for Rs700.000 Millions.
Kishore Biyani, managing director, Pantaloon Retail India, said the deal was just a financing arrangement, and Pantaloon had no plans to link itself with BCCL. "This thing never crossed my mind when they struck the deal with BCCL," Biyani said.
"Their retail chain is on an expansion spree. They decided to opt for this
route to meet their fund requirements," said Biyani.
After this preferential placement, the promoters' stake in Pantaloon Retail
will be down by a percentage point from 39 per cent currently.
The company plans to add more than 1.5-million sq ft of retail space over the
next 18 months with a capital expenditure of around Rs.1500.000 Millions.
In a notice to the stock exchanges, Pantaloon said the shares had been placed
at a premium of Rs724.02 per share.
Pantaloon will also be issuing 408,000 warrants worth Rs. 300.000 Millions to
promoters and their associates. These warrants will give an option to
the warrant holder to acquire one fully paid-up equity share of Rs10 each for cash
at a premium of Rs725 per share for every warrant within a period of 18 months.
MARKETING
Sales
During the year 2004-05 the flagship brand, the Times of
India scaled new heights.
The swells in circulation on Wednesdays, attributable to its
supplement Ascent, took its sales past the 3 millions mark on Wednesday the 21st
July 2004 for the first time ever, times was repeated on several Wednesdays
during the year under review.
The publication achieved an overall growth of 6.8 % during
the period review with the Kolkata and the
The average daily net sales of the Times of India during the
year 2004-05 were 2.823 millions copies as against 2.643 millions copies in the
corresponding period of the previous year.
During the year under review, new editions ware lynched at
Mangalore and
The publication also achieved the unique status of becoming
the World’s largest selling English Board sheet daily with more than .2400
millions copies nationally every day.
Moving ahead of giants like
The average net sales of The Economic Times showed a modest
growth of 4.6 % over the previous year with average daily net sales at 58.800
millions copies in 2004-05 as against 0.562 millions copies in the previous
year, the current year the economics times added a new editions at
Navbharat Times showed a dip in sales by 6.2 % attributed to
the discontinuance of the upcountry edition form
On 30th May 2005 the Mumbai Mirror was launched
in Mumbai the first ever offering of the compact format of a morning daily in
English, the launch was a grand success with about 0.160 millions copies being
sold the very first day.
Currently Mumbai Mirror is offered complimentary with the TO
in
Newsprint
Global Newsprint Demand Supply balance remained very narrow.
With significant capacity downtime and self disciplining undertaken by the
The next 12 month is likely to be very challenging both from
the availability as well as price angle. Prices are expected to peal father
thorough the year with worsening conditions of suppliers. The major suppliers
continue to report losses, despite the prevailing high prices due to increased
input costs and hence are either shutting capacity or moving to value added
products.
Consumption:
The consumption recorded a 12 % increase for all
publications combined within August 04 to July 05. Planned growth for 2005-06
will pose far higher challenges as overall scarcity in availability of
Newsprint expected in the next year.
Value
addition
Strategic focus to the newsprint sourcing in maintaining the
frontloaded inventories and better geographic diversification of sources helped
in sharp negotiations on the prices. Further improvement in contractual were
negotiated to build advantages position vis-a-vis competition.
Times
Music
The division continued to show growth in revenue and profit
in a shrinking market. royalty revenue both Indian and international showed
strong growth. A notable feature of the year was the strong in the
international music genre.
Times
Retail
On the strength of robust sales growth from existing stores
and continued rapid addition of new stress the division has show good revenue
performance and has reported a position bottom line. Planet M crossed the 100
store mark in the year and added 40 new locations. The chain is now 114 stores
across 26 cities. It has achieved leadership status in the music and home
entertainment business in the country.
Times
Multimedia
Curriculum based products showed stable performance and the
division expanded its range of learning based products.
Television
Zoom is the first channel form BCCL stable and was
commercially launched on September, 20, 2004. Zoom is
The channel has been able to gamer 9 awards in its first few
months of operations. The month of July 2005 Zoom has a reach of 43 % and
connectivity paged at over 70 %. The channel has roped in over 120 advertisers for
AD and event sponsorship. Further the channel is not being distributed nor only
in
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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. 40.40 |
|
|
1 |
Rs. 82.93 |
|
Euro |
1 |
Rs. 55.81 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
79 |
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 |
|