%2026-Jul-2007_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
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Report Date : |
26.07.2007 |
IDENTIFICATION DETAILS
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Name : |
PRASAD ACUMETER
PRIVATE LIMITED |
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Registered Office : |
Plot No. 88, Road
No. 9, Jubilee Hills, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
04.08.1980 |
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Com. Reg. No.: |
01-2754 |
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CIN No.: [Company
Identification No.] |
U29219AP1980PTC002754 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDP00008B |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturer of
Kraft Tapes, Label Stock, Chromo Label Stock. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 42000 |
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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. Trade relations are
fair. Financial position is good. Payments are correct and as per
commitments. The company is doing very well. It can be
considered good for any normal business dealings at usual trade terms. It can be
regarded as a promising business partner in a medium to long – run. |
LOCATIONS
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Registered Office : |
Plot No. 88, Road
No. 9, Jubilee Hills, Hyderabad-500033, |
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Tel. No.: |
91-40-23608733 /
23548804 |
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Fax No.: |
91-40-23547704 |
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E-Mail : |
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Website : |
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Area : |
Owned |
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Factory : |
13B, Type-1, APIIC Industrial Estate,
Kukatpally, |
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Tel. No.: |
91- 40- 23079012 |
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Area : |
Owned |
DIRECTORS
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Name : |
Mr. K.P. Prasad |
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Designation : |
Director
(Technical) |
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Address : |
Plot No. 88, Road
No. 9, Jubilee Hills, Hyderabad-33, |
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Date of
Birth/Age : |
1.07.1941 |
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Date of
Appointment : |
3.05.1990 |
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Name : |
Smt. Madhu Kilaru
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Designation : |
Managing Director |
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Address : |
Plot No. 88, Road
No. 9, Jubilee Hills, Hyderabad-33, |
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Date of
Birth/Age : |
24.02.1946 |
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Date of
Appointment : |
5.01.1891 |
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Name : |
Mr. G. Jagadeesh |
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Designation : |
Director |
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Address : |
108, Dnarakamani
Apartments, Navodaya Colony, Yella Reddyavda, |
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Date of
Birth/Age : |
4.10.1940 |
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Date of
Appointment : |
4.08.1990 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. L. Krishna Veni |
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250 |
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G. Sarla Devi |
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650 |
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K. Annapuran Devi |
|
750 |
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G. Jagadeesh |
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350 |
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Dr. C. Sudha |
|
900 |
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C. Bapineedu |
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300 |
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K. Harichnadra Prasad |
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500 |
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K. R. K. Prasad |
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1100 |
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Dr. K. Gangadhar Prasad |
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4500 |
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Dr. K. Sasidhar Prasad |
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3500 |
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Dr. R. S. Prasad |
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250 |
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Gokaraju Swathi |
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450 |
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G. Prathiba Rao |
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500 |
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Sitarama Raju |
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150 |
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P. Sruthi |
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901 |
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Madhu Kilaru |
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6000 |
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Dr. P R. K. Prasad |
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450 |
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P. T. Vikram Prasad |
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450 |
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K. P. Prasad |
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4705 |
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P. Brahmaji Rao |
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350 |
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Total |
|
27006 |
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Category |
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Percentage of
Holding |
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Directors of relatives of directors |
|
85.00 |
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Other |
|
15.00 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of
Kraft Tapes, Label Stock, Chromo Label Stock. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
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Chromo Label
stock Kraft Paper Tapes
Label Stock |
Sq. Mtr. |
2250 |
2250 |
GENERAL INFORMATION
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No. of Employees : |
200 |
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Bankers : |
v
Canara
Bank Limited, Somajiguda Branch, v
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Brahmayya and
Company Chartered Accountants |
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Address : |
Flat No. 403, Golden
Green Apartments, Irrum Manzil, Somjiguda, Hyderabad-500002, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
40000 |
Equity Shares |
Rs. 100 each |
Rs. 4.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
27006 |
Equity Shares |
Rs. 100 each |
Rs. 2.701 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
2.701 |
2.701 |
2.700 |
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2] Share Application Money |
0.000 |
0.000 |
5.156 |
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3] Reserves & Surplus |
7.937 |
7.314 |
0.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
10.638 |
10.015 |
7.856 |
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LOAN FUNDS |
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1] Secured Loans |
0.046 |
1.174 |
0.571 |
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2] Unsecured Loans |
15.444 |
15.445 |
13.519 |
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TOTAL BORROWING |
15.490 |
16.619 |
14.090 |
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DEFERRED TAX LIABILITIES |
0.256 |
0.000 |
0.000 |
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TOTAL |
26.384 |
26.634 |
21.946 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3.734 |
3.931 |
4.449 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
13.098
|
7.572 |
9.945
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Sundry Debtors |
15.239
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18.191 |
19.894
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Cash & Bank Balances |
0.121
|
0.146 |
0.012
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
3.119
|
4.060 |
1.877
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Total
Current Assets |
31.577
|
29.969 |
31.728 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
6.662
|
5.874 |
12.631
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Provisions |
2.265
|
1.392 |
1.600
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Total
Current Liabilities |
8.927
|
7.266 |
14.231 |
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Net Current Assets |
22.650
|
22.703 |
17.497
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
26.384 |
26.634 |
21.946 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
59.974 |
66.572 |
80.096 |
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Other Income |
0.260 |
2.653 |
0.000 |
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Total Income |
60.234 |
69.225 |
80.096 |
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Change in Stock |
0.958 |
(0.108) |
0.000 |
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Profit/(Loss) Before Tax |
1.767 |
3.527 |
5.723 |
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Provision for Taxation |
1.144 |
1.370 |
1.580 |
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Profit/(Loss) After Tax |
0.623 |
2.157 |
4.143 |
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Import Value |
NA |
NA |
26.843 |
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Expenditures : |
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Raw Materials Consumed |
44.130 |
47.502 |
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Trading Finished Goods – Consumed |
0.446 |
0.210 |
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Personnel Expenses |
2.553 |
2.107 |
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Other Expenses |
9.596 |
13.158 |
63.906 |
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Financial Charges |
2.158 |
2.022 |
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Depreciation |
0.542 |
0.591 |
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Total Expenditure |
59.425 |
65.590 |
63.906 |
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%2026-Jul-2007_files/image003.gif){kind=small}
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
1.03
|
3.12 |
5.17
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Net Profit Margin (PBT/Sales) |
(%) |
2.95
|
0.05 |
7.14
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Return on Total Assets (PBT/Total Assets} |
(%) |
5.00
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10.40 |
15.81
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Return on Investment (ROI) (PBT/Networth) |
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0.17
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0.35 |
0.72
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Debt Equity Ratio (Total Liability/Networth) |
|
2.30
|
2.38 |
3.60
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Current Ratio (Current Asset/Current Liability) |
|
3.54
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4.12 |
2.22
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LOCAL AGENCY FURTHER INFORMATION
Fixed Assets
v
Land
v
v
Plant
& Machinery
v
Safety
Equipment
v
Electrical
Installation
v
Furniture
& Fitting
v
Office
Equipment
v
Vehicles
v
Computer
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Name of the company |
PRASAD
ACUMETER PRVATE LIMITED |
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Presented By |
Mrs. Madhu |
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1) Date and description of instrument creating the change |
28.4.1983 Hypothecation dated 28.4.1983 Rs. 1.370 Millions Executed by the company in favor of Andhra Pradesh stets finance
corporation Agreement pf book debts dated 28.4.1983 |
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2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 1.370 millions |
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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 |
Imported machinery and imported testing equipment Indigenous machinery and indigenous laboratory equipment together with
all items of ets and other installations whether attached to or lying loose
either at the said premises or elsewhere acquired to and owned by the
borrower All book debts present and future
|
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4) Gist of the terms and conditions and extent and operation of the
charge. |
Repayment by loan over a period not axceeding 10 year by 19 half
yearly installment interest at the rate 6.5% above bank rate ruling from time
to time |
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5) Name and Address and description of the person entitled to the charge.
|
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6) Date and brief description
of instrument modifying the charge |
Not Applicable |
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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 |
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Name of the company |
PRASAD
ACUMETER PRVATE LIMITED |
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Presented By |
Mrs. Madhu |
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1) Date and description of instrument creating the change |
12.9.1997 Hypothecation Agreement
|
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2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 1.000 millions |
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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 |
Charge on Stock |
|
4) Gist of the terms and conditions and extent and operation of the
charge. |
ROI – 17.34% all other term & condition by the bank from time to
time |
|
5) Name and Address and description of the person entitled to the
charge. |
Canara Bank, Somajiguda Branch, |
|
6) Date and brief description
of instrument modifying the charge |
6.3.1998 Hypothecation Agreement
|
|
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. |
Existing charge on stocks of Rs. 3.500 Millions to be enhanced to Rs.
1.500 Millions |
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Name of the company |
PRASAD
ACUMETER PRVATE LIMITED |
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Presented By |
Mrs. Madhu |
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1) Date and description of instrument creating the change |
22.2.1989 Hypothecation Agreement
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 3.500 millions |
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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 |
Charge on Stock |
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4) Gist of the terms and conditions and extent and operation of the
charge. |
ROI – 19.75% all other term & condition by the bank from time to
time |
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5) Name and Address and description of the person entitled to the
charge. |
Canara Bank, Somajiguda Branch, |
|
6) Date and brief description
of instrument modifying the charge |
9.2.1998 Hypothecation Agreement
|
|
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. |
Existing charge on stocks of Rs. 3.500 Millions to be enhanced to Rs.
4.000 Millions |
|
Name of the company |
PRASAD
ACUMETER PRVATE LIMITED |
|
Presented By |
Mrs. Madhu |
|
1) Date and description of instrument creating the change |
5.8.1997 Hypothecation Agreement
|
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2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 0.600 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 |
Hypothecation of OPEL Astra brand motor car proposed to be purchased
out of bank loan and all those motor vehicles already purchased by the
company in future |
|
4) Gist of the terms and conditions and extent and operation of the
charge. |
Interest payable on the loan is payable at such rates including as may
be prescribed by RBI from time to time at 16.5% compounded quarterly 18.75%
compounded quarterly for delayed period on overdue other terms and
conditions |
|
5) Name and Address and description of the person entitled to the
charge. |
Canara Bank, Somajiguda Branch, |
|
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 |
PRASAD
ACUMETER PRVATE LIMITED |
|
Presented By |
Mrs. Madhu |
|
1) Date and description of instrument creating the change |
22.2.1989 Hypothecation Agreement
|
|
2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 12.000 millions |
|
3) Short particular of the property charged. If the property acquired
is subject to charge, date of the acquired of the property should be given |
Stock and book debts, land and building , plant and machinery of the
company fixed assets at shed no. 13B, type
- I, Apiic, Industrial, Estate,
|
|
4) Gist of the terms and conditions and extent and operation of the
charge. |
ROI – 19.75% all other term & condition by the bank from time to
time |
|
5) Name and Address and description of the person entitled to the
charge. |
Canara Bank, Somajiguda Branch, |
|
6) Date and brief description
of instrument modifying the charge |
12.9.1997 Hypothecation Agreement
12.9.1997 Book debts 12.9.1997 Machinery 12.9.1997 Schedule |
|
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. |
Existing charge on stocks of Stock and book debts, land and building ,
plant and machinery of the company fixed assets at shed no. 13B, type - I, Apiic, Industrial, Estate, Hyderabad
Charge on book debts Charge on stock |
|
Name of the company |
PRASAD
ACUMETER PRVATE LIMITED |
|
Presented By |
Mrs. Madhu |
|
1) Date and description of instrument creating the change |
17.2.1989 Hypothecation Agreement
|
|
2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 1.500 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 |
Hypothecation of raw metrical, released paper, maplitho paper,
aliminium foil etc. |
|
4) Gist of the terms and conditions and extent and operation of the
charge. |
ROI – 19.75% all other term & condition by the bank from time to
time |
|
5) Name and Address and description of the person entitled to the
charge. |
Canara Bank, Somajiguda Branch, |
|
6) Date and brief description
of instrument modifying the charge |
Supplementary 21.12.1992 |
|
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. |
Existing charge on stocks of Rs. 1.875 Millions to be enhanced to Rs.
2.500 Millions |
AS PER
WEBSITE
About
Company
Profile
of Managing Director
Name: Mrs. Madhu Kilaru
She is
a Graduate in Mathematics with B.Sc Degree from
Profile
of Technical Director
Name: Mr. Prasad Kilaru
Qualifiation:
B.Sc in
Mechanical Engineering from
Experience:
Worked as Assistant Engineer/ Executive
Engineer in Heavy Engineering Corporation,
Moved to U.S.A. as an immigrant and started working for Acumeter Labs.,
Marlboro, Mass, from 1972-1981, initially as a Quality Control Engineer.Last
position held was as Vice President (International Customer Service) in U.S.A.
for a period of 5 years from 1977-81.During this period,he traveled extensively
all over the world to install label stock making equipment, Baby diapers and
sanitary napkins making equipment.
Is familiar with the growth of label and
disposable adhesive products through out the world with first hand experience
and has observed the Indian market growing in an un-organized sector
between1972-81.
Has knowledge of raw material sources,
finished product markets and technical details of most of the label stock
market and has helped many companies in different parts of the world to develop
the right product for the right application.
Company
Profile
The company has been incorporated in the
year 1980, with the collaboration of Acumeter Labs., Marlboro, Mass,
Hot melt pressure sensitive which is
used as an adhesive was not available in
Around 1986-87 the company felt that it
has been purchasing Release paper of nonstandard nature mainly from Mumbai at
an exorbitant price where the base of release paper itself is not of good
quality. Therefore, the company decided to float a sister company called A.P.
Coated Papers Private Limited, exclusively to produce Release paper for the
parent company, M/s. Prasad Acumeter Private Limited
The company bought for some time release
base paper from Indian sources for siliconzing but subsequently being
dissatisfied with the quality of the base the company started importing Super
Calendared Glassine paper, Clay Coated Kraft (CCK) and Light Coated Craft (LCK)
with different GSM from different sources in
During 1986-94, the sister company was
only coating tin based solvented silicone coating. Subsequent to which the
company has developed the technology during 1995 to coat solventless silicone
without using solvents and is very successful in doing so between1995 to
present.
In the year 2000 the sister company
however developed new technology to add control release additive to the
solventless platinum coating system so as to obtain different release levels
for different applications.
During the same period because of the
demand from the market for a wider product the company established another
sister company called Sasidhar Industries to produce 20” wide label stock with
indigenous water based acrylic emulsion and has successfully entered into the
market both in roll form and sheet form.
During the year 2002 the company felt the
need for expanding in the hotmelt sector itself and therefore installed a
Nordson 20” Hot Melt Coater Laminator with a production capacity of 1, 50,000
Sq.mtrs per month single shift.
All in all from the modest start of Rs.3.000 Millions turnover per year in 1982
the group of companies presently are doing approximately Rs.150.000 Millions
turnover per annum producing 0.600 Millions Sq.mtrs per month and 50 tons of
release paper per month. This has been achieved with the trained personnel and
the total strength of the entire employees including office in all the three
companies being not more than 50.
Products
Presently between 12” original Acumeter
machine and with the addition of 20” Nordson machine and with 20” Water based
acrylic emulsion machine they are able to produce a wide variety of label stock
products with different Face papers and different Release liners in different
widths as per the customers needs. A typical example of the wide variety of the
label stocks they are producing now are:-
1) Chromo Art
2) Mirrorkote
3) Hi-Brite (Print Plus / Maplitho)
4) Polyester – Opeque and Transparent
5) Gold Foil
6) Synthetic paper
7) BOPP for over lamination
8) PVC
9) Coloured Chromo
10) Metalized Silver Polyester
11) Metalized Gold Polyester
12) Holographic Polyester film and any other filmic products which are heat sensitive.
13) Barcode label stock
14) Direct Thermal
The company markets the above products
depending on the customers’ requirements in widths ranging from 75mm – 500mm
with different kinds of Release papers from Glassine, Clay Coated Kraft (CCK),
Light Coated Kraft (LCK) and Super Calendared Kraft (SCK) all over
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 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.40.30 |
|
|
1 |
Rs.82.97 |
|
Euro |
1 |
Rs.55.64 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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 |
|