MIRA
INFORM REPORT
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Report Date : |
15.06.2007 |
IDENTIFICATION DETAILS
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Name : |
VEEJAY LAKSHMI ENGINEERING WORKS LIMITED |
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Registered Office : |
Sengalipalayamnggo Colony, Post |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
26.08.1974 |
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Com. Reg. No.: |
705 |
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CIN No.: [Company
Identification No.] |
L29191TZ1974PLC000705 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMPV03277B |
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Legal Form : |
Public Limited Liability company. Company’s Shares are listed on the
Stock Exchange. |
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Line of Business : |
The company is engaged in manufacturing of textile machinery and cotton yarn. |
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 2200000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regualr |
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Litigation : |
Celar |
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Comments : |
Subject is 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 : |
Sengalipalayamnggo Colony, Post |
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Tel. No.: |
91-422-460662 |
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Fax No.: |
91-422-460453 |
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Website : |
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Works: |
Engineering. Unit - 1 Sengalipalayam Coimbatore-641 022 Engineering. Unit - II Kariyampalayam Annur, Engineering. Unit - III Kariyampalayam Annur, Engineering. Unit - IV Vellamadai (P.O) Coimbatore-641 110 |
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Wind Mills: |
Tirunelveli District - 627 011 |
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DIRECTORS
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Name : |
Sri V.J. Jay Aram An |
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Designation : |
Chairman cum Managing Director |
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Name : |
Sri N. M. Ananthapadmanabhan |
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Designation : |
Director |
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Date of Birth/Age : |
10.03.1935 |
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Date of Appointment : |
29.10.2001 |
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List of Outside
Directorship: |
Lakshmi Automatic Loom Works Limited Veejay Lakshmi Textiles Limited |
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Name : |
Sri B. Selvarajan |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
13.05.1942 |
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Qualification : |
L.T.M |
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Experience : |
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Date of Appointment : |
11.09.1975 |
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List of Outside
Directorship: |
M/s. The Suguna Mills Pvt. Ltd M/s. Venkatalakshmi Textiles Pvt. Ltd M/s. Veejay Syntex Pvt. Ltd M/s. Veejay Lakshmi Textiles Ltd |
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Name : |
Sri S. K. Mohandass |
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Designation : |
Director |
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Name : |
Sri N. Athimoolam Naidu |
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Designation : |
Director |
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Date of Birth/Age : |
19.04.1943 |
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Qualification : |
B.E.M.S |
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Experience : |
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Date of Appointment : |
24.10.200 |
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List of outside directorship: |
M/s. Augustan Knit Wear Pvt. Ltd M/s. Augustan Textile Colours Ltd M/s. Augustan Knitting Company Ltd |
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Name : |
Sri J. Vijayakumar |
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Designation : |
Director |
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Name : |
Sri J. Anand |
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Designation : |
Managing Director |
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Name : |
Sri. B. Sriram |
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Designation : |
Director |
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Name : |
Sri. D. Ranganathan |
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Designation : |
Whole Time Director (Finance & Marketing) |
KEY EXECUTIVES
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Name : |
Mr. K.S. Srinivasan |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter Holding |
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Promoter Holding- Indian Promoter |
3066792 |
60.466 |
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Non-Promoter
Holding |
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Mutual Funds and DTI |
200 |
0.003 |
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Banks, Fin. Institutions, Insurance Companies |
600 |
0.012 |
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FIIS |
187606 |
3.699 |
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Others |
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Directors & Relatives |
74140 |
1.462 |
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Private Corporate Bodies |
356851 |
7.036 |
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Indian Public |
1375090 |
27.112 |
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NRI's/OCB's |
10621 |
0.210 |
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Total |
5071900 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
The company is engaged in manufacturing of textile machinery and cotton yarn. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Engineering Division- Textiels machinery and Engineering ancillaries |
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NA |
NA |
NA |
GENERAL INFORMATION
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No. of Employees : |
400 |
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Bankers : |
State Bank of Main Branch, |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M/s. N. R. Doraiswami & Company Chartered Accountant |
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Address : |
Coimbatore-641 018 |
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Memberships : |
Confederation of Indian Industry |
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Associates/Subsidiaries : |
Subsidiaries: Veejay Lakshmi Textiles Limited Associations: M/s. Veejay Sales and Services Limited M/s. Veejay Terry products Limited M/s. Veejay marketing M/s. Veejay Tool & Die Pvt. Limited M/s. Veejay Savio Lakshmi Machinery Limited (ITEMA INDIA LTD) (Upto
26.01.2006) M/s. Veejay Syntex Pvt. Ltd |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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6000000 |
Equity Shares |
Rs.10/- each |
Rs.60.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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5071900 |
Equity Shares |
Rs.10/- each |
Rs.50.719
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
50.719 |
50.719 |
50.700 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
511.679 |
460.458 |
400.800 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
562.398 |
511.177 |
451.500 |
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LOAN FUNDS |
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1] Secured Loans |
129.767 |
135.392 |
130.700 |
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2] Unsecured Loans |
22.250 |
60.635 |
80.400 |
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TOTAL BORROWING |
152.017 |
196.027 |
211.100 |
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DEFERRED TAX LIABILITIES |
58.549 |
58.726 |
0.000 |
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TOTAL |
772.963 |
765.930 |
662.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
336.907 |
337.985 |
282.400 |
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Capital work-in-progress |
0.000 |
0.000 |
0.800 |
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INVESTMENT |
180.534 |
184.058 |
128.800 |
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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 |
204.118
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211.449 |
176.000 |
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Sundry Debtors |
19.461
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8.950 |
3.700 |
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Cash & Bank Balances |
77.606
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44.187 |
99.500 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
126.263
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169.667 |
182.100 |
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Total
Current Assets |
427.448
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434.253 |
461.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
99.033
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138.100 |
181.300 |
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Provisions |
72.892
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52.266 |
29.400 |
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Total
Current Liabilities |
171.925
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190.366 |
210.700 |
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Net Current Assets |
255.526
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243.887 |
250.600 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
772.963 |
765.930 |
662.600 |
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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 |
568.758 |
696.987 |
856.000 |
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Increased/ Decreased in finished Goods |
7.906 |
2.618 |
3.600 |
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Other Income |
23.855 |
10.045 |
(4.200) |
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Total Income |
600.519 |
709.650 |
855.400 |
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Profit/(Loss) Before Tax |
83.200 |
106.800 |
133.200 |
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Provision for Taxation |
20.400 |
35.600 |
45.200 |
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Profit/(Loss) After Tax |
62.800 |
71.200 |
88.000 |
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Earnings in Foreign Currency : |
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Export and Service |
35.723 |
85.273 |
0.000 |
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Total Earnings |
35.723 |
120.996 |
0.000 |
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Imports : |
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Raw Materials |
3.936 |
11.641 |
0.000 |
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Stores & Spares |
82.607 |
158.441 |
0.000 |
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Capital Goods |
22.647 |
15.951 |
0.000 |
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Others |
0.000 |
0.000 |
0.000 |
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Total Imports |
109.19 |
186.033 |
0.000 |
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Expenditures : |
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Raw Material Consumed |
300.361 |
368.931 |
447.400
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Excise
Duty |
0.000 |
0.000 |
00.000
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Power
& Fuel Cost |
0.000 |
0.000 |
15.200
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Other
Manufacturing Expenses |
0.000 |
0.000 |
72.600
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Employee
Cost |
0.000 |
0.000 |
67.200
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Selling
and Administration Expenses |
0.000 |
0.000 |
67.600
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Miscellaneous
Expenses |
0.000 |
0.000 |
00.200
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Payment to and Provision for employees |
81.977 |
87.782 |
0.000 |
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Other Expenses |
84.895 |
95.388 |
0.000 |
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Financial charges |
12.058 |
17.206 |
0.000 |
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Depreciation & Amortization |
37.982 |
33.478 |
0.000 |
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Total Expenditure |
517.273 |
602.785 |
670.200 |
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SUMMARISED RESULTS
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PARTICULARS |
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31.03.2007 |
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Sales Turnover |
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797.800 |
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Other Income |
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24.300 |
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Total Income |
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822.100 |
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Total Expenditure |
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679.100 |
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Operating Profit |
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143.000 |
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Interest |
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6..200 |
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Gross Profit |
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136.800 |
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Depreciation |
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37.700 |
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Tax |
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20.800 |
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Reported PAT |
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73.100 |
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Dividend (%) |
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200.000 |
KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity
Ratio |
0.32 |
0.42 |
0.63 |
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Long
Term Debt-Equity Ratio |
0.14 |
0.24 |
0.37 |
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Current
Ratio |
1.27 |
1.41 |
1.53 |
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TURNOVER
RATIOS |
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Fixed
Assets |
0.87 |
1.18 |
1.63 |
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Inventory |
2.74 |
3.60 |
4.63 |
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Debtors |
39.92 |
109.76 |
89.23 |
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Interest
Cover Ratio |
6.33 |
7.21 |
6.64 |
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Operating
Profit Margin(%) |
20.15 |
22.60 |
21.69 |
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Profit
Before Interest And Tax Margin(%) |
13.47 |
17.79 |
18.30 |
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Cash
Profit Margin(%) |
15.23 |
15.02 |
13.66 |
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Adjusted
Net Profit Margin(%) |
8.54 |
10.22 |
10.27 |
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Return
On Capital Employed(%) |
10.78 |
18.10 |
23.21 |
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Return
On Net Worth(%) |
9.05 |
14.79 |
21.29 |
STOCK PRICES
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Face Value |
Rs.10.00 |
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High |
Rs.90.50 |
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Low |
Rs.90.00 |
LOCAL AGENCY FURTHER INFORMATION
Business:
The company has a market share of 70% and above for TFO in
the Indian Market. More than 3000 machines has been sold of which 10% have been
exported to Nepal, Indonesia, Malaysia, Philippines, Nigeria, Sudan and Egypt.
The manufacturing units have acquired ISO 9002 qualification and are equipped
with latest state of art sophisticated machines with CNC controls from reputed
suppliers in Europe,
The company entered into a joint venture with Savio Machine
Tessili SpA.,
The companies both the mills are equipped with latest machines including :
Luwa Humidification Plant -
Blowroom - Ming Cheng,
Cards with Chute feed system and Auto Leveller
Comber - Lakshmi Rieter E7/4
Draw Frame - RSB 851 Auto Leveller Drawing
Simplex - SKF 1600 Top Arm Type Drafting System
Spinning - A310 Sussen Top Arm
Winding - Savio Automatic Cone Winder / Espero L
The Twisting Unit consists of 14 TFO Machines and 3 Large Package TFO Machines to twist yarns of 2 ply to 21 ply for weaving and industrial purposes.
In addition to the above units, to generate power using wind
energy, the company installed 4 windmills of total capacity 900 KVA in 1994 at
Kethanure, near Palladam in
There was a fall in the turnover from Rs. 1375.700 millions
in the previous year to Rs. 970.200 millions in the year under report due to
poor offtake of the machines from the Engineering Division. The reduction in
the turnover and unfavourable market prices for the cotton and yarn had very
badly affected the profits and the company has closed the year with a loss of
Rs. 54.700 millions as against a profit of Rs. 67.000 millions in the previous
year
HISTORY
Subject was originally incorporated on
In the year 1994, public issue was made at a premium of Rs. 75 per share. The shares have been listed on Mumbai, Chennai and Coimbatore Stock Exchange. At present, the company has 5 manufacturing divisions with more than 1500 Employees.
Subject was promoted by V. J. Jayaraman and his family.
It was established to produce textile machinery particularly twisting machines. The company acquired from Sitra the know-how to manufacture twisting machines. The technology was further developed by the company in-house.
During 1993-94, the company diversified into textile spinning, processing and power generation.
The textile process house at Mettupalayam was set up
initially to produce/process 600 kg pd each of dyed/bleached yarn. It has
installed four windmills each of 225 KVA capacity at Kethanur in
The company obtained the ISO 9002 certification from TUV,
The company's new project to manufacture automatic cone
winders for which it has entered into a joint venture with Savio Machine
Tessili,
The company is also taking efforts to promote the twisting
machines in
PROFITS/DIVIDENDS
The net profit of the company for the year ending
OPERATIONS
The sale of both the products - Two-for-One Twisters and
Automatic Cone winders are lower than the previous year. Hence, the turnover of
Rs. 555.800 Millions is lower than the previous year turnover of Rs.689.700
Millions. The fall in the sale of twisting machines is due to the combination
of several factors -decline in yarn exports from
The company has come out of the joint venture arrangement with Savio and has also sold to Savio, the shares held by the company in the Joint Venture Company. While the company has retained the right to continue to produce the automatic cone winders with the know-how given by the Savio, the company has agreed not to use the Trade/Brand names Savio and Espero. The Company is now selling its winders under its own brand name EXCELLO.
The revenue from windmills during the year under review is Rs.13.000 Millions as against Rs.7.300 Millions in the
previous year.
The Aluminium Die Casting division has been strengthened by
installing second hand machines imported from
FUTURE PLANS
Many of the spinning mills are modernizing and expanding their capacities and there are also new mills being set up. The company's products -both twisters and winders- are used for post spinning operations and the company expects increase in demand for its products once these increased capacities in spinning come into production. The company has also taken steps to give thrust to its marketing activities by conducting Road Shows and Seminars in different parts of the country and the response is encouraging. The company has got export orders for aluminium components from parties who were buying earlier from the Swiss company from whom they have imported the Aluminium Die Casting machines.
FINANCE
With the internal accruals retained in the business, the borrowings have come down and the working capital limits have also been sparingly used due to comfortable liquidity position in the company The loans from directors have also been fully re paid. All these factors have resulted in reduced outflow on account of interest. The subsidiary has planned for expansion and diversification and the company may provide funds to the Wholly Owned subsidiary for financing its expansion/diversification plans. To subscribe to any additional capital requirement of the Subsidiary, the amount of Rs. 60.000 millions due from the subsidiary has been converted as share application money.
INDUSTRY STRUCTURE AND DEVELOPMENT
The Company produces textile machinery-namely twisters and
winders-which are used in the textile spinning mills for post spinning
operations. The Company has also invested in wind mills. Indian textile
engineering industry has played a vital role in the development of the textile
industry in
To support the user industry, the Government has allowed liberal import of textile machinery both new and old. The import of many machines are allowed at concessional rate of duty. There is no level playing field and the inverted duty structures place the local manufacturer in a disadvantageous position European manufacturers compete in the market with their machines produced in China. In this competitive situation, the local manufacturers have to continuously upgrade their products and manufacturing process to meet the demand of the customers.
The Company has also invested in wind mills, the power generated from which is used/adjusted for the power consumed from the State Grid by the Company and its subsidiary. Although there is good growth in the number of wind mills installed, as the State Govt. is not able to provide adequate infrastructure for evacuation of power, the wind mills are not utilized to the optimum generating capacity.
OPPORTUNITIES AND THREATS
Opportunities:
Textile industry in
As
Industry is having adequate capacity to meet any surge in demand
Threats:
-Competition from Imports both new and second hand machines
-Superior product technology available with the foreign manufacturers
-Govt. policies encouraging foreign manufacturers to setup
facilities in
-Concession in import duties for export related imports.
Segmentwise/Productwise Performance
There is a 19% decrease in the sales turnover of textile machinery due to decrease in the demand. The sale of twisters has decreased to 236 Nos as against 294 Nos machines in the previous year. The sale of automatic cone winders decreased to 22 Nos as against 32 Nos in the previous year. The income from wind mills has increased to Rs. 13.000 Millions as against Rs. 7.300 Millions in the previous year, due to additional investments made in the previous year.
Outlook
The spinning industry is making investments for modernization and expansion and this will increase the demand for the company's products, which are used for post spinning operations. With the capability to produce products of proven technology at competitive prices, the company will be able to maintain and improve the market share for its products.
Fixed Assets:
Land
Building
Machinery
Electrical Equipments
Diese, Patterns, Jigs and Fixture
Inspection and Testing Machinery
Vechicles
Furniture andOffice Equipments
Work- in –Progress
As Per Web Site:
The company was established
in 1976, in
Continuing the tradition of commitment in delivering quality products to meet customer requirements, in combination with continuous Research and development for design improvements and cutting edge technology innovation, investments are continuously undertaken in improving the production facilities with the latest advanced technology machines to obtain high productivity, quality and achieve reduction in product costs.
The company was incorporated in
the Year 1974 as a private limited company by Sri V.J.Jayaraman and his
family. In the year 1994, public issue was made at a premium of Rs 75 per
Share. The shares have been listed on Mumbai, Chennai and Coimbatore Stock
Exchanges. At present the company has 5 manufacturing divisions with more than
1500 Employees.
Veejay Textile machinery
Division
1975 Engineering Unit I
Sengalipalayam,
1993 Engineering Unit II Annur,
Company has a market share of 70 %
and above for TFO in the Indian Market . More than 3000 machines has been sold
of which 10% have been exported to Nepal, Indonesia, Malaysia, Philipines,
Nigeria, Sudan and Egypt. The manufacturing units have acquired ISO 9002
qualification and are equipped with latest state of art sophisticated machines
with CNC controls from reputed suppliers in Europe,
1998 Engineering Unit III Annur,
Company entered into a joint
venture with Savio Machine Tessili SpA.,
Veejay Textiles Division
1994 Spinning Mill (8,304
Spindles) Udumalpet 100% Cotton Yarn
1995 Spinning Mill (16,368 Spindles) Thekkampatti 100% Cotton Yarn
v
Both the mills are
equipped with latest machines including
v
Luwa Humidification
Plant -
v
Blowroom - Ming Cheng,
v
Cards with Chute feed
system and Auto Leveller
v
Comber – lakshmi
Rieter E7/4
v
Draw Frame - RSB 851
Auto Leveller Drawing
v
Simplex - SKF 1600 Top
Arm Type Drafting System
v
Spinning - A310 Sussen
Top Arm
v
Winding - Savio
Automatic Cone Winder / Espero L
1995 Twisting Unit Annur,
The Twisting Unit consists of 14
TFO Machines and 3 Large Package TFO Machines to twist yarns of 2 Ply to 21 Ply
for weaving and industrial purposes.
In addition to the above units, to
generate power using wind energy, the
company installed 4 windmills of total capacity 900 KVA in 1994 at Kethanur,
near Palladam 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 |
7 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
52 |
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 |
|