MIRA INFORM
REPORT
|
Report
Date : |
26.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
MCM SERVICES PRIVATE LIMITED |
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Registered
Office : |
Continental House, |
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Country
: |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
15.05.1995 |
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Com.
Reg. No.: |
55-68542 |
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CIN
No.: [Company
Identification No.] |
U74899DL1995PTC068542 |
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Legal
Form : |
Private Limited Liability Company |
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Line
of Business : |
Subject is engaged in the business of Construction
Management Services – Design, Technical and Professional Consultancy
Services. |
RATING
& COMMENTS
|
MIRA’s
Rating : |
Ba |
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
220000 |
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Status
: |
Satisfactory
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Payment
Behaviour : |
Usually
Correct |
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Litigation
: |
Clear |
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Comments
: |
Subject appears to be a small company in its field.
Management remained non-cooperative and appears to be poor in corporate
governance. No payments records are available. The company can be considered for
any business dealings on safe and secured trade terms and condition,
initially. |
LOCATIONS
|
Registered
Office : |
9A,
Sainik Farms, Lane C-3, Khanpur, |
|
Tel.
No.: |
91-11-29552781/ 29552706/ 30906352/ 29551478 |
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Fax
No.: |
91-11-29551707 |
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E-Mail
: |
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Website
: |
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Corporate
Office : |
Continental House, |
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Tel.
No.: |
91-11-26213203 |
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Fax
No.: |
91-11-26424119 |
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E-Mail
: |
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Location : |
Commercial |
DIRECTORS
|
Name : |
Mr. Chander Verma |
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Designation
: |
Managing Director |
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Address
: |
E-13, Pushpanjali Farms, Bijwasan, New Delhi-110061 |
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Date
of Birth/Age : |
22.09.1956 |
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Qualification
: |
B.E. (Civil), M. E. A. (Construction Management), |
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Experience
: |
Specialisation
and Experience in Financial Management and Control, Risk Management,
Engineering, Tendering, Administration, Procurement, Management
and Execution of various types and sizes of Construction Projects. v Fellow, Institution of Engineers, v Life Member, The Institution of
Plant Engineers. v Fellow, The Institution of
Surveyors. (F.I.S) President,
International Council of Consultants. (I.C.C) v Fellow, Institution of Valuers.
(F.I.V) v Vice Chairman & Treasurer,
CIDC, v Member, International law
Association. (M.I.L.A) v Vice Chairman, Indian Society for
Trenchless Technology. v Fellow, Indian Society of
Arbitrators. (F.I.S.A) v Vice Chairman, Project Exports Promotion
Council of v Member, The International
Institute of Human Rights Society. (M.I.I.H.R.S) v Life Member, International Centre
for Alternate Dispute Resolution(ICADR) |
|
Date
of Appointment : |
15.05.1995 |
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Name : |
Ms. Madhu Verma |
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Designation
: |
Whole Time Director |
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Address
: |
E-13, Pushpanjali Farms, Bijwasan, New Delhi-110061 |
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Date
of Birth/Age : |
12.08.1960 |
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Date
of Appointment : |
15.05.1995 |
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Name : |
Mr. Mohinder Kumar Verma |
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Designation
: |
Director |
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Address
: |
9, Sainik Farms, Lane C-3, Khanpur, New Delhi-110062 |
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Date
of Birth/Age : |
02.11.1961 |
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Qualification
: |
B.Sc.
(Civil) |
|
Experience
: |
Experience
in Financial Management, Engineering, Tendering / Costing, Procurement and
Administration. Familiar with the latest methods of Concrete Placement, Heavy
Earth Moving Works, Quality Control and Foundation Treatment with special
emphasis on Building & Real Estate Works, Mining and Marine construction |
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Date
of Appointment : |
05.09.2000 |
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|
|
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Name : |
Mr. K N Bahri |
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Designation
: |
Director |
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Date
of Birth/Age : |
01.01.1941 |
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Date
of Appointment : |
04.06.1996 |
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Name : |
Mr. Tadivaka Bhima Shankar Rao |
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Designation
: |
Director |
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Address
: |
C-4/302, Capital Appartments, Vasundra Enclave,
Delhi-110096 |
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Date
of Birth/Age : |
21.08.1936 |
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Date
of Appointment : |
04.09.1996 |
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Name : |
Mr. Puran Anand Kapur |
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Designation
: |
Director |
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Address
: |
661, Sector 15, |
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Date
of Birth/Age : |
03.09.1932 |
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Qualification
: |
B. Sc
Engineering |
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Experience
: |
Experience
in Estimating, planning, Construction, Electrical & Mechanical Eqpt &
Plant operation, Claims, Arbitration & maintenance of major
multipurpose projects in diversified fields of Power, Irrigation,
Transportation and Geotechinical works. |
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Date
of Appointment : |
27.09.1999 |
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Name : |
Mr. Rohit Verma |
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Designation
: |
Director |
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Address
: |
E-13, Pushpanjali Farms, Bijwasan, New Delhi-110061 |
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Date
of Birth/Age : |
27.09.1984 |
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Date
of Appointment : |
19.04.2005 |
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Name : |
Mr. Prosanta Kumar Mookherjee |
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Designation
: |
Director |
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Address
: |
C-28, Sarita Vihar, New Delhi-110044 |
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Date
of Birth/Age : |
03.02.1939 |
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Date
of Appointment : |
19.04.2005 |
KEY
EXECUTIVES
|
Name : |
Mamta Jain and Associates
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Designation
: |
Company Secretary |
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Address
: |
111, Jeewan Villa, Darya Ganj, |
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Tel.
No. : |
91-11-23279243 |
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Name : |
Ms. Soumendra Das and Associates |
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Designation
: |
Company Secretary |
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E-Mail: |
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Tel.
No. : |
91-11-26148048/ 26151255 |
MAJOR
SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
|
|
|
|
Mr.
Chander Verma |
75000 |
50.00 |
|
Ms. Madhu
Verma |
15000 |
10.00 |
|
Mr. Mohinder
Kumar Verma |
22500 |
15.00 |
|
Mr. Rohit
Verma |
15000 |
10.00 |
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Mr. Akhil
Verma |
15000 |
10.00 |
|
Ms.
Shaina Verma |
7500 |
5.00 |
|
Total |
150000 |
100.00 |
As on 30.09.2005
|
Names of Shareholders |
No. of Shares |
|
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Mr. Chander
Verma |
819000 |
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Ms. Madhu
Verma |
60000 |
|
Mr.
Mohinder Kumar Verma |
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Mr. Rohit
Verma |
75000 |
|
Mr. Akhil
Verma |
75000 |
|
Ms.
Shaina Verma |
30000 |
|
P A Kapur |
1000 |
All the shares are held by directors or their relatives.
BUSINESS
DETAILS
|
Line
of Business : |
Subject is engaged in the business of Construction
Management Services – Design, Technical and Professional Consultancy
Services. |
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|
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Products
: |
Construction Management Services – v Design v Technical and Professional
Consultancy Services |
GENERAL
INFORMATION
|
Bankers
: |
v UCO Bank v State Bank of v Citi Bank v HDFC Bank v Syndicate Bank v Bank of v Standard Chartered Bank v Andhra Bank v Indian Overseas Bank v Punjab National Bank |
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Auditors
: |
TAS Associates Chartered Accountants |
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Address
: |
Flat No.4, 11/71, Punjabi Bagh West, |
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Subsidiaries
: |
Continental Construction Limited Legal Status: Public Limited Liability Company Date of Incorporation: Line of Business: Construction MCM Infrastructure Private Limited |
CAPITAL
STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs. 10/- each |
Rs. 50.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs. 10/- each |
Rs. 10.000 millions |
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2006 |
31.03.2005 |
|
SHAREHOLDERS
FUNDS |
|
|
|
|
1] Share
Capital |
|
10.000 |
10.000 |
|
2] Share
Application Money |
|
28.000 |
0.000 |
|
3]
Reserves & Surplus |
|
17.971 |
11.254 |
NETWORTH
|
|
55.971 |
21.254 |
|
|
|
|
|
|
1]
Secured Loans |
|
10.334 |
15.135 |
|
2]
Unsecured Loans |
|
21.187 |
16.150 |
TOTAL
BORROWING
|
|
31.521 |
31.285 |
|
DEFERRED
TAX LIABILITIES |
|
0.000 |
1.002 |
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|
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|
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TOTAL
|
|
87.492 |
53.539 |
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APPLICATION OF FUNDS
|
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FIXED ASSETS [Net Block]
|
|
28.369 |
30.000 |
Capital work-in-progress
|
|
0.000 |
0.400 |
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INVESTMENT
|
|
14.687 |
14.843 |
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
Inventories |
|
2.131 |
18.753 |
|
Sundry
Debtors |
|
27.251 |
22.916 |
|
Cash
& Bank Balances |
|
1.192 |
6.663 |
|
Other
Current Assets |
|
0.000 |
0.000 |
|
Loans
& Advances |
|
54.919 |
15.724 |
Total Current Assets
|
|
85.493 |
64.056 |
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
Current
Liabilities |
|
41.148 |
54.633 |
|
Provisions |
|
0.117 |
1.180 |
Total Current Liabilities
|
|
41.265 |
55.813 |
Net
Current Assets
|
|
44.228 |
8.243 |
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
|
0.208 |
0.053 |
|
|
|
|
|
TOTAL
|
|
87.492 |
53.539 |
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
Sales
Turnover |
|
294.354 |
164.971 |
|
Other Income |
|
0.000 |
0.000 |
|
Total
Income |
|
294.354 |
164.971 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
10.730 |
16.520 |
|
Provision for Taxation |
|
4.013 |
5.863 |
|
Profit/(Loss) After Tax |
|
6.717 |
10.657 |
|
|
|
|
|
|
Total
Expenditure |
|
283.624 |
148.451 |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT /
Total Income |
(%) |
|
2.28 |
6.46 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
3.65 |
10.01 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
8.35 |
15.11 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.19 |
0.78 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
1.30 |
4.10 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
2.07 |
1.15 |
LOCAL
AGENCY FURTHER INFORMATION
The subject provides the following services to its clients:
Construction
v Power Projects including Dams,
Tunnels, Power Houses
v Water Supply and Public Health
Engineering
v Irrigation and Canal Projects
v Roads, Bridges and Transportation
Projects
v Harbour and Marine Works
v Building, Real Estate and Industrial
Construction
v Oil and Gas Pipeline and Refineries
v Airports and Runways
v Railway Projects
Risk Management
Services
v Lender’s Engineer/ Owner’s Engineer
v Financial Services and Capital
Management
v Financial Forecasting (Cost
Estimating and Scheduling)
v Cost Optimization and Controlling
Cost
v Management Information Systems
Venture Management
Services
v Site Surveys, Investigation and
Testing
v Pre-Feasibility and Feasibility
Studies
v Engineering – Design and
Specification
v Design Review
v Quantity Surveying
v Preparation of Contract Document
v Pre-qualification, Tender Evaluation
v Selection of Contractors,
Sub-Contractors and Vendors
v Project Planning, Programming and
Evaluation and CPM Scheduling
v Optimum resourcing of Plant and
Equipment, Material and Personnel
v Project Monitoring
v Project Management and Construction
Supervision
v Quality Assurance
v Identification, Preparation and
Follow up of claims and extra items
v Testing and Commissioning of
Material, Plant and Machineries
v Software Development
v Training and Certification of
Construction Personnel
Projects
Project Completed
v Construction Management related
services for 2x500 MW HDVC back to back Power Project at Chandrapur in
v Construction Management related
services for 1x500 MW HDVC back to back Power Project at
Work in Progress
v Construction of Spillway, Underground
Grouting and Drainage Galleries and botton outlet end for the 800 MW Koldam
Hydroelectric Power Project in Himachal Pradesh
v Construction Management of main Dam,
Approach Channel, Power House and Switch Yard Excavation of 800 MW Koldam
Hydroelectric Power Project in Himachal Pradesh.
Website Details :
Subject is a company started by a select and dedicated group
of result oriented professionals having hands on experience in the construction
industry. The group is supported by experts in various diversified engineering
fields. These experts are accessible, as and when required.
Subject further has the backing and support of various local &
internationally renowned consultancy organizations to arrange financial tie-ups
and technical back-up and support services on a “case to case” basis for works
to be undertaken in India and overseas. MCM provides a complete range of
integrated services – from initial planning and designs to construction /
construction management and maintenance, taking into consideration all the
client’s requirements as well as the existing environment.
A World of Construction Experience
Infrastructure
Construction
Project and Contract Management
Lender's Engineer
Land Surveyors & Quantity Surveyors
Safety Engineers
QA/QC Personnel
Engineering & Arbitration Consultants
Works Completed To Date
Construction management related services for 2X500 MW HVDC back to back power
project at Chandrapur in
Contract and construction management related services for 1X500MW HVDC back to
back power project at
Project Planning and related services of road project, for Madhucon Projects
Ltd.,
Provided services as chartered engineers for 9MW co-generation Power project
for ABC Paper plant for Amrit Banaspati Co. Ltd. at Sailakhurd, Distt.
Provided services as Chartered Engineers for generation system to M/S Bhrigu
Alloys & Steel (P) Ltd.,
Works In Progress
Construction of Spillway, Underground Grouting &
Drainage Galleries and bottom outlet end for the 800MW Koldam Hydroelectric
Power Project in Himachal Pradesh.
BOARD OF DIRECTORS
Chander Verma
Director B.E.(Civil), M.E.A (Construction Management)
Fellow,
Institution of Engineers, India.(F.I.E)
Fellow, Institution of Surveyors.(F.I.S)
Fellow, Institution of Valuers.(F.I.V)
Fellow, Indian Society Of Arbitrators.(F.I.S.A)
Life Member, International Centre for Alternate Dispute Resolution(ICADR)
Chairman, Project Exports Promotion Council of India, New Delhi(P.E.P.C)
Chairman, Indian Society for Trenchless Technology.(IndSTT)
President, International Council of Consultants.(I.C.C)
Vice Chairman, Construction Industry Development Council(CIDC)
Member, Executive Committee, Federation of Indian Chambers of Commerce and
Industry(FICCI), New Delhi.
Life Member, FACT Panel of Arbitrators and Conciliators, FICCI,
Member, SAARC - Construction Industry Council.
A highly qualified CIvil Engineer with a business background
having vast experience in financial management and control, risk management,
engineering, tendering, administration, procurement, management and execution
of various types/sizes of construction projects worldwide, arbitration,
conciliation and DRB cases. He is widely travelled all over the world and has
expertise in using of all types of heavy construction plants and equipment and
in overall construction management.
M. K. Verma
Director B.Sc. (Civil)
Chairman,
Indo-Canada Joint Business Council
Member, National Society for Professional Engineers (NSPE) USA
Member, Nitro Nobel Blasting Techniques
Member, Panel of Arbitrators, Singapore International Arbitration Centre
Member, Indian Society for Trenchless Technology
Member, International Council of Consultants
Chaired various sessions of national and international seminars/conferences
A qualified civil engineer with a business background and
having experience in Financial Management, Engineering, Tendering/ Costing,
Procurement and Administration. Over 10 years experience in handling of
commercial, technical and administrative matters. He is familiar with the
latest methods of concrete placement, heavy earthmoving works, quality control
and foundation treatment, with special emphasis on marine construction. Has
traveled extensively all over the world and participated in numerous equipment
exhibition and technical deliberations.
Mr. T.B.S. Rao
Director, L.C.E, AMIE, Post Graduate (Civil-IIT Powai &
TCE)
More than 51 years experience in tendering, planning,
project management and construction of hydro and thermal power projects,
irrigation canals, sewerage, water supply, roads, bridges, aqua ducts,
buildings, pipe lines etc.
Planning and construction of 1365 MLD Karkh Water Supply Scheme for supply of
drinking water to
Worked in various prestigious national and international projects, through
Public Works Department of A.P., Indian Railways, Tata Electric Company and
Continental Construction Ltd.
Mr. P. A. Kapur
Director B. Sc Engineering
More than 51 years experience in planning, construction,
concreting of rock filled dams, tunnels, hydel channels etc. Maintenance and
operations of various types of plants, machinery and equipment deployed on
construction of large hydro-electric projects.
Worked as Member, Irrigation and Chairman of Bakra Beas Management Board for
operation and maintenance of major multi purposes projects like Bakra dam,
Former Member
National Committee on Dam Safety
National Committee for preparation of document on Snow &
Glaciers.
Press Releases
ICRA-CIDC grading for construction
entities
Their Bureau
ICRA, in association with Construction Industry Development
Council (CIDC), has announced a scheme for grading of construction entities.
The gradings are aimed at enhancing the efficiency and
transparency in the Indian construction sector and facilitating credit flow to
it, particularly in view of the recent Government decision to grant industry
status to construction sector, the CIDC Chairman, Mr. G.V.Ramakrishna, said at
a press conference here on Tuesday.
``The ICRA-CIDC grading scheme reflects the overall
capability of the rated entity in terms of its track record, whether he can
perform or be expected to perform based on several parameters and factors. As
such, it is not an investment-related rating'', the ICRA Managing Director, Mr.
P.K. Choudhary, told presspersons at the conference.
The ICRA-CIDC grading methodology encompasses all players in
a construction project - the contractor, the consultant, the promoters and the
project itself.
Besides, it provides lenders with an independent opinion on
the quality of the construction entity graded.
According to the ICRA-CIDC grading system, the contractor,
consultant and the project owner are graded under two broad risk categories of
business risk and financial risk. The criteria for the assessment of business
risk and financial risk is different for contractor, consultant, project owner
and the project itself and grades are assigned accordingly.
By using the grading methodology, ICRA-CIDC has graded seven
construction entities, comprising five contractors and two consultants.
ECC, the construction arm of L&T, has been assigned a CR
1 grading, while Petron Civil Engineering Ltd and Soma Enterprises Ltd have
been given a CR 2 grading.
Continental Construction Ltd has been assigned a CR 2 -
grading whereas Ganesan Builders Ltd has been given a CR 3 + grading.
MCM Services Private Ltd has been given a CT 3 grading while
Swar Shilp Properties Ltd has been given a CT 3 + grading.
Mr. Ramakrishna said that CIDC has made several
recommendations to the Government for changing the tendering procedures for
PSUs and autonomous bodies. It is also working out an arrangement for speedier
settlement of disputes in order to give added comfort to the contractors.
CIDC is also working towards the setting up of Engineers
Forum of India, which will maintain the National engineers register to
facilitate the cross-border movement of engineers in line with the WTO
agreement on services.
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.40.81 |
|
|
1 |
Rs.81.57 |
|
Euro |
1 |
Rs.54.91 |
SCORE
& RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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
|
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 |