MIRA
INFORM REPORT
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Report Date : |
15.06.2007 |
IDENTIFICATION DETAILS
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Name : |
UIC UDYOG LIMITED |
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Formerly Known As : |
UIC WIRES LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
21.12.1995 |
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Com. Reg. No.: |
21-76114 |
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CIN No.: [Company Identification No.] |
U27109WB1995PLC076114 |
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TAN No.: [Tax Deduction & Collection Account No.] |
CALU01275B |
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Legal Form : |
A closely held public limited liability company. |
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Line of Business : |
Manufacturer of Iron and Steel products. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1400000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having
satisfactory track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings
at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-33-2235 3628 / 2280 8811 |
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Fax No.: |
91-33-2280 9492 |
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E-Mail : |
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Website : |
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Corporate Office : |
'Anandalok', 227, |
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Tel. No.: |
91-33-2280 8811/ 8812 / 8813 /
2280 9490 |
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Fax No.: |
91-33-2280 9492 |
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Factory 1 : |
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Tel. No.: |
91-33-2582 0069 / 6332 |
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Fax No.: |
91-33-2582 0070 |
DIRECTORS
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Name : |
Mr. Bhanwar Lal Jajodia |
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Designation : |
Chairman and Managing Director |
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Address : |
CF – 286, Sector – I, |
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Date of Birth/Age : |
22.12.1949 |
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Date of Appointment : |
21.12.1995 |
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Election Commission Identity Card No.: |
WB/20/139/735244 |
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Name : |
Mr. Mahendra Kumar Jajodia |
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Designation : |
Whole Time Director |
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Address : |
CF – 286, Sector – I, |
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Date of Birth/Age : |
21.08.1966 |
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Date of Appointment : |
13.04.1998 |
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Election Commission Identity Card No.: |
WB/20/139/735235 |
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Name : |
Mr. Kishore Kanjee |
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Designation : |
Director |
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Address : |
5/1B, |
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Date of Birth/Age : |
18.04.1953 |
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Date of Appointment : |
29.02.2000 |
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Election Commission Identity Card No.: |
AEVPK7708N |
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Name : |
Mr. Samir Kumar Rhosh |
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Designation : |
Whole Time Director |
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Address : |
Building No. 24, Flat No. 1, |
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Date of Birth/Age : |
22.07.1948 |
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Date of Appointment : |
01.04.2002 |
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Name : |
Mr. Ram Chandra Bajaj |
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Designation : |
Whole Time Director |
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Address : |
CG 242, Sector – 1, |
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Date of Birth/Age : |
02.07.1952 |
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Date of Appointment : |
01.04.2002 |
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Name : |
Mr. Jayanta Saha |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
30.11.1961 |
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Date of Appointment : |
01.08.2001 |
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Name : |
Mr. Mayank Agarwal |
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Designation : |
Director |
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Address : |
Flat No. 3 C & 3E, |
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Date of Birth/Age : |
21.10.1979 |
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Date of Appointment : |
01.07.2004 |
KEY EXECUTIVE
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Name : |
Mr. S. D. Basu |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
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No.
of Shares |
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Bhanwar Lal Jajodia |
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220700 |
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Mahendra Kumar Jajodia |
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100 |
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Madhu Devi Jajodia |
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134600 |
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Mahesh Poddar |
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100 |
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Madan Lal Jajodia |
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60000 |
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Prity Agarwal |
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4500 |
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UIC Industries Limited |
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3400000 |
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Orbital Suppliers Private Limited |
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570000 |
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Standard Dealoom Private Limited |
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720000 |
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Sagar Tracon Private Limited |
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640000 |
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Sigma Dealoom Private Limited |
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610000 |
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Target Merchandise Private Limited |
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470000 |
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Neelgiri Commercial Private Limited |
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680000 |
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Nikher Merchandise Private Limited |
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530000 |
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Madhya Tradelink Private Limited |
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850000 |
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Kasturi Dealers Private Limited |
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900000 |
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Sperm Dealcom Private Limited |
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50000 |
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Blue Chip Financial Consultants Private Limited |
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50000 |
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Eldot Commotrade Private Limited |
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100000 |
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Calcutta Fintrade Private Limited |
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200000 |
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Hemangi Plastics Private Limited |
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100000 |
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Aristo Traders Private Limited |
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80000 |
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Jindal Commercial Private Limited |
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100000 |
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Balaji Tradelink Private Limited |
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150000 |
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Nahata Holdings and Consultants Private Limited |
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100000 |
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Sakuntala Distributors Private Limited |
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100000 |
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Nissan Vinimay Private Limited |
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50000 |
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Millia Tracon Private Limited |
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70000 |
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Equity
Share Breakup |
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Category
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Percentage
of Holding |
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Bodies corporate |
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82.06 |
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Directors of relatives of directors |
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17.94 |
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Total
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|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Iron and Steel products. |
GENERAL INFORMATION
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Bankers : |
State Bank of Commercial
Branch, Alipore, 24/1/1, Industrial Development Bank of India Limited 44, Shakespeare Sarani, Kolkata – 700017, West |
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Facilities
: |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name
: |
Chartered Accountants |
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Address
: |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs. 10/- each |
Rs. 150.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4424162 |
Equity Shares |
Rs. 10/- each |
Rs.
44.242 Millions |
FINANCIAL DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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44.242 |
110.000 |
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2] Share Application Money |
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135.000 |
0.000 |
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3] Reserves & Surplus |
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185.899 |
77.579 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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365.141 |
187.579 |
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LOAN FUNDS |
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1] Secured Loans |
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362.042 |
178.678 |
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2] Unsecured Loans |
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0.000 |
82.550 |
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TOTAL
BORROWING |
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362.042 |
261.228 |
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DEFERRED TAX LIABILITIES |
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3.903 |
3.881 |
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TOTAL |
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731.086 |
452.688 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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269.833 |
193.878 |
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Capital work-in-progress |
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0.631 |
0.000 |
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INVESTMENT |
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13.515 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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194.754 |
148.004 |
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Sundry Debtors |
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213.040 |
153.731 |
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Cash & Bank Balances |
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9.203 |
8.810 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
|
98.531 |
28.758 |
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Total Current Assets |
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515.528 |
339.303 |
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Less :
CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
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50.634 |
74.547 |
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Provisions |
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17.805 |
5.968 |
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Total Current Liabilities |
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68.439 |
80.515 |
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Net Current Assets |
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447.089 |
258.788 |
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MISCELLANEOUS EXPENSES |
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0.018 |
0.022 |
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TOTAL |
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731.086 |
452.688 |
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PROFIT
& LOSS ACCOUNT
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
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Sales Turnover |
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1049.354 |
981.181 |
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Other Income |
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0.066 |
0.296 |
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Total Income |
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1049.420 |
981.477 |
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Profit/(Loss) Before Tax |
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43.716 |
42.646 |
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Provision for Taxation |
|
12.568 |
13.685 |
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Profit/(Loss) After Tax |
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31.148 |
28.961 |
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Expenditures : |
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Raw Material Consumed |
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851.630 |
826.556 |
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Consumption of stores and spares
parts |
|
21.829 |
22.642 |
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Increase/(Decrease) in Finished
Goods |
|
[9.323] |
[36.961] |
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Salaries, Wages, Bonus, etc. |
|
16.828 |
17.106 |
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Managerial Remuneration |
|
1.829 |
1.578 |
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Payment to Auditors |
|
0.127 |
0.108 |
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Interest |
|
24.457 |
21.832 |
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Insurance Expenses |
|
2.085 |
1.732 |
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Power & Fuel |
|
43.266 |
36.748 |
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Depreciation & Amortization |
|
19.287 |
17.371 |
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Other Expenditure |
|
33.689 |
30.120 |
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Total Expenditure |
|
1005.704 |
938.832 |
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KEY
RATIOS
|
PARTICULARS |
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|
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
|
2.97 |
2.95 |
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Net Profit Margin (PBT/Sales) |
(%) |
|
4.17 |
4.35 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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5.57 |
8.00 |
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Return on Investment (ROI) (PBT/Networth) |
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|
0.12 |
0.23 |
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Debt Equity Ratio (Total Liability/Networth) |
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|
1.18 |
1.82 |
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Current Ratio (Current Asset/Current
Liability) |
|
|
7.53 |
4.21 |
LOCAL AGENCY FURTHER INFORMATION
Bankers Charges
Report as per Registry
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Name of the company |
UIC
WIRES LIMITED |
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Presented By |
Mr.
S. D. Basu - Company Secretary |
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1) Date and description of instrument creating the change |
Agreement of Hypothecation of goods and assets dated
14.09.2004 grant of Individual limits within the overall limit dated
14.09.2004 As modified on 27.12.2004
for Rs. 184.200 Millions |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 168.000
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 |
All present and future
goods book dents and all other movable assets of the borrower inflicting
documents of title to the goods, outstanding moneys receivables including
receivables by way of cash assistance and cash incentives under the cash
inventive scheme or any other scheme claims including claims by way of refund
of customs / excise duties under the duty drawback credit scheme or any other
scheme bills, invoices documents contracts insurance polices, guarantees,
engagements, securities investments and rights and the present machinery
listed in the schedule to the agreement and all future machinery belonging to
or in the possession or under control of the borrower wherever lying stored
and kept and whether in possession of the borrower or of the bank or of any
third party whether in India or elsewhere thought the world by way of first
charge. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The borrower
shall not to or allow anything which may prejudice the security and shall comply
with the terms and conditions of the agreements. The Bank reserves
the rights to charge the interest,
commission, discount, costs and charges at such rate as may be
determined by the Bank from time to time according to banking norms and RBI
Guidelines, the present rate of interest for Cash Credit SBAR i.e. @ 10.25 %
p.a. with monthly rests subject to change to SBAR from time to time. Margin : 25 % of Raw
Materials, Stocks – in –process and Finished Goods 10 % of Letter of
Credit an Bank Guarantee and 30 % of Book debts / Receivables 180 days for
Government organizations and for other 90 days |
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5) Name and Address and description of the person entitled to the charge. |
State Bank of Commercial
Branch, Alipore 24/1/1, |
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6) Date and brief description of instrument modifying the charge |
Supplemental
Agreement of Hypothecation of Goods and Asses for Increase in the overall
limit dated 28.02.2005. |
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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. |
By this
modification, the overall limit is enhanced form Rs. 184.200 millions to Rs.
193.200 Millions with details of credit facilities as specified below :
Interest : For cash Credit :
SBAR @ 10.25 % p.a. with monthly rests, subject to change of SBAR form time
to time. For stand by line
of Credit : @ 1 % above SBAR @ 10.25 % p.a. effective rate @ 11.25 % p.a. Margin : 25 % of Raw
material, Stock in Process, finished goods 10 % of letter of credit 30 % Book debts /
Receivables 180 days for
Government Organisation and for others 90 days. All other terms
and conditions continue to remain as before in full force and effect. |
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This form is for |
Creation of
charge |
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Corporate
identity number of the company |
U27109WB1995PLC076114 |
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Name of the
company |
UIC UDYOG LIMITED |
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Address of the
registered office or of the principal place of business in |
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Type of charge |
Book debts Movable Property |
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Particular of
charge holder |
Industrial Development Bank of India Limited 44, Shakespeare Sarani Kolkata – 700017, West |
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Nature of description
of the instrument creating or modifying the charge |
Deed of Hypothecation executed by UIC Wires Limited in
favour of Industrial Development Bank of India Limited Copy of the Deed of
Hypothecation is attached. |
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Date of
instrument Creating the charge |
18.01.2007 |
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Amount secured by
the charge |
Rs. 100.000
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest
: The Rate of Interest
is BPLR – 0.75 % subject to minimum of 11 % payable monthly. Terms of
repayment : The validity
period for working capital facility is 12 months. Margin : The margins are
as follows :
Government
Organisation 180 days and for others 120 days
Extent and
operation of the chare The charge operates
as security for the due repayment by the Company to the Lender of its working
capital loan of Rs. 100 Millions together with the interest at the agreed
rates, liquidated damages, premia on repayment, costs, chares and expenses
and all other monies as stipulated and in the manner set out in the Loan
Agreement. Other : The Company shall
duly observe and perform all the terms and conditions of the Loan Agreement. |
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Short particulars
of the property charged |
The whole of the movable
properties of the Company including its movable plant and machinery,
machinery spares, tools and accessories and other movables both present and
future whether installed or not and whether now lying loose or in cases and
also the stocks of raw materials, semi finished and finished goods,
consumable stores, book debts and such other movables. |
AS PER
WEBSITE
Message from the CMD
In the last five years since they started operations in 1999, the company
has come a long way. They have carved a niche for their selves in the market
with a who's who list of clients in
This was possible by marketing products to very exacting
specifications consistently and standing by their delivery commitment
regularly. Their ISO 9001-2000 certification bears ample testimony to their
untiring commitment to quality and service.
Their fully automated plant at kalyani is one of the largest and
technically advanced wire manufacturing units in the country with facilities to
prevent pollution. Operations are ably supported by computerized offices with
technical and sales data available online through internet. this coupled with
performance enhancing environment that they have created for their workforce has
resulted in their success.
Over the years their highly trained and committed workforce has
made possible a substantial increase in their turnover. They intend to double
their export volume in the current fiscal. Nop mean achievement this, when seen
in the broader perspective of globalisation and demand for quality that is
internationally acceptable.
At UIC Wires they have always looked at progress with a human
face. Not only is it important for them to be commercially successful but also
to be a responsible corporate citizen, never neglecting the environment that
sustains the society at large.
In Conclusion,
let me say with words of
" The
greatest pleasure in life is doing what people say you cannot do "
Profile
UIC WIRES LIMITED is an ISO: 9001 : 2000 certified Business House
in Steel Wire Industry having State-Of-the-art Multi-Product Plant at
Kalyani, West Bengal, India. The automated Plant is one of the largest of its
kind in
the Company is dealing in a diverse product mix with the sole
mission of customer delight. All clients are treated as partners for synergic
relationship. They always share technical and commercial planning with their
clients for better effectiveness.
The Company has dedicated & trained team aiming towards
"Zero-Defect" through Kaizen. Modern & automated Plant &
Machinery monitored by fully functional laboratories are constantly thriving
for excellence. Their Products are licensed by Bureau of Indian Standards and
conform to ASTM, BS, DIN and JIS specifications. They also customise their
products and services as per client's specification. The Organisation has
a flat structure to facilitate both way communication. The HRD cell remains
active to upgrade & hone the skills of all team members. The Company is
closely linked with the reputed Engineering, Technical & Management
institutes for necessary training and development.
UIC WIRES LIMITED has implemented comprehensive computerization
of its Offices and Plant for smooth operations. Communication between Offices
and Plant is mostly paperless via electronic media. ISO 9001:2000
Quality Management System is strictly applied to reap its full benefits.
UIC WIRES LIMITED is an environment conscious & socially
responsible Organisation. It has fully functional Effluent Treatment Plant to
ensure a clean environment. It is actively involved in social forestry,
women's literacy, charitable hospitals etc. The Company believes in overall
development of the society.
However, the journey has just began. They require everybody's
support in their quest for excellency. Profit has never been the sole motive of
UIC WIRES LIMITED. They value & respect commitment & service to their
clients. The Company always honours its commitment to all stakeholders and
society as a whole.
Product
|
Application |
Product |
|
WIRES FOR |
P.C. Single Wire As Drawn/Indented |
|
P.C. Single Wire Stress Relieved ( |
|
|
P.C. Strand 3-Ply Stress Relieved ( |
|
|
P.C. Strand 7-Ply Stress Relieved ( |
|
Application |
Product |
|
WIRES FOR CABLE |
Flat Cable Armour |
|
Round Cable Armour Wire |
|
Application |
Product |
|
WIRES FOR BEARING |
Ball Bearing Wire |
|
Ball Bearing Quality Br. Bars |
|
Application |
Product |
|
WIRES FOR FASTNER |
Wire for High Tensile Bolts |
|
Low carbon Wires for Rivets, Screws, Nuts, etc. |
|
Application |
Product |
|
WIRES FOR CYCLE |
Bright Spoke Wire |
|
Galvanised Spoke Wire |
|
|
Chain Rivet Wire |
|
|
Flat Bush Wire for Cycle & Moped Chains |
|
|
Cycle Accessories Wire |
|
|
Nipple Wire |
|
Application |
Product |
|
WIRES FOR ROLLER |
Flat Bush / Roller Wire for Industrial Chains |
|
Rivet Wire |
|
Application |
Product |
|
WIRES FOR SPRING |
Patented & drawn Spring Steel Wire |
|
Tiller Spring Wire |
|
|
Shutter Spring Wire |
|
|
Hair Pin Wire |
Client
UIC
WIRES LIMITED has embraced the culture of open door policy since inception.
ISO : 9001 : 2000 certification amply demonstrates their commitment towards
quality & service tailor made for their valued customers all over the
globe. Through kaizen, they are toiling towards the coveted goal of "Zero
defect."
They are proud of our customers
in SAARC Nations & Middle East. Their export volume is growing steadily
since 1999 which shows their increasing reputation. On a regular basis, they
are getting invitation for trade shows from
UIC WIRES LIMITED commenced commercial production in 1999. Within this
period, it is one of the leading manufacturers of Steel Wires catering to the
needs of Asian Development Bank projects, Indian
railways, Central Electricity Board - Mauritius, Central Irrigation Dept.,
Bangladesh railways, Bangladesh Power Development Corporation, Andhra Pradesh
Power Transmission Corporation, Rajasthan Rajya Vidyut Prasaran Nigam Limited,
Uttaranchal Power Corporation, GRIDCO, Tamil Nadu Electricity Board, Kamataka
Power Transmission Corporation, Punjab State Electricity Board, West Bengal
State Electricity Board, West Bengal Rural Energy Development Corporation etc
to name A FEW. the Company is serving both the Government as well as Privet
Sector 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 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.40.97 |
|
|
1 |
Rs.80.73 |
|
Euro |
1 |
Rs.54.56 |
SCORE & RATING EXPLANATIONS
|
SCORE
FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
53 |
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 |
|