MIRA INFORM REPORT
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Report Date : |
15.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
BOMBAY RAYON FASHIONS LIMITED |
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Formerly Known
As : |
BOMBAY RAYON FASHIONS PRIVATE LIMITED |
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Registered
Office : |
D-1st Floor, Oberoi Garden Estates, Chandivali, Farms Road,
Chandivali, Andheri (East), Mumbai-400072, Maharashtra, India |
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Country : |
India |
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Financials (as
on) : |
31.03.2006 |
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Date of
Incorporation : |
21-05-1992 |
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Com. Reg. No.: |
11-66880 |
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CIN No.: [Company
Identification No.] |
U17120MH1992PLC066880 |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of textiles consisting of fabrics and garments |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit
Limit : |
USD 6000000 |
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Status : |
Good |
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Payment
Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade
relations are fair. Financial position is good. Payments are usually correct
and as per commitments. The company can be considered good for any normal business dealings at
usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long
term. |
LOCATIONS
|
Registered
Office : |
D-1st Floor, Oberoi Garden Estates, Chandivali, Farms Road,
Chandivali, Andheri (East), Mumbai-400072, Maharashtra, India |
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Tel. No.: |
91-22-66955566 |
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Fax No.: |
91-22-28476992 |
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Registrar and Transfer Agent: |
Mr. Joy Varghese, Intime Spectrum Registery Limited C -13, Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup (West),
Mumbai – 400078, Maharashtra, India |
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Tel. No.: |
91-22-25963838 (Extension – 293) |
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Fax No.: |
91-22-25946969 |
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E-Mail : |
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Human Resource Department : |
D 1st Floor, Oberoi Garden, Chandivali Farms Road,
Chandivali, Andheri (East), Mumbai- 400072, Maharashtra, India |
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Tel. No.: |
91-22-66955566 |
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Fax No.: |
91-22-28476992 |
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E-Mail : |
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Factory 1 : |
Weaving of Fabrics Raj Rajeshwari Compound, Sonale Village, Bhiwandi |
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Factory 2 : |
Weaving of Fabrics TTC Industrial Area, Navi Mumbai |
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Factory 3 : |
Garment Manufacturing 57 / A, 3rd Phase, Peenya Industrial Area, Bangalore -
560058 |
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Factory 4 : |
Garment Manufacturing 288, 4th Phase, Peenya Industrial Area, Bangalore - 560058 |
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Factory 5 : |
Weaving of Fabrics 227 / 3, Khanvel Main Road, Kherdi, Silvassa |
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Factory 6 : |
Garment Manufacturing 19th KM 53 / 10, Madanayakanna Hialli, Madavara Post
Dasunp, Bangalore - 562123 |
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Factory 7 : |
Garment Manufacturing 151, Babaasabara Palya, Mysore Road, Kengeri, Bangalore - 560058 |
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Factory 8 : |
Yarn Dyeing, Processing and Garment Manufacturing Plot Number / Survey Number 21 to 32 (P), KIADB Apparel Park, Near
Railway Station, Doddaballapur – 561203 (under set up) |
DIRECTORS
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Name : |
Janardan Agarwal |
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Designation : |
Chairman |
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Name : |
Aman Agarwal |
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Designation : |
Vice Chairman |
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Name : |
Naseer Ahmed |
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Designation : |
Joint Vice Chairman |
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Name : |
Prashant Agarwal |
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Designation : |
Managing Director |
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Name : |
Uday Mogre |
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Designation : |
Executive Director (Corporate) |
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Name : |
A R Mundra |
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Designation : |
Executive Director (Finance) |
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Name : |
Pravin P Shah |
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Designation : |
Non Executive Director |
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Name : |
B S Bhesania |
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Designation : |
Non Executive Director |
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Name : |
S B Agarwal |
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Designation : |
Non Executive Director |
KEY EXECUTIVES
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Name : |
Ms. Prachi A. Deshpande |
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Designation : |
Deputy Company Secretary |
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Address |
D 1st Floor, Oberoi Garden Estates, Chandivali Farms Road,
Chandivali, Andheri (East), Mumbai –
400072, Maharashtra, India |
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Tel. No.: |
91-22-66955566 |
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E-Mail.: |
MAJOR SHAREHOLDERS
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter Group |
2,73,59,160 |
55.86 |
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Mutual Funds and UTI |
36,45,950 |
7.44 |
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Banks / Financial Institutions / Insurance Companies |
12,39,700 |
2.53 |
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Foreign Institutional Investors |
44,17,458 |
9.02 |
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Non-Resident Indians |
4,27,366 |
0.87 |
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Private Bodies Corporate |
60,45,708 |
12.35 |
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Indian Public |
56,77,381 |
11.59 |
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Clearing Member |
1,66,963 |
0.34 |
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Total |
4,89,79,686 |
100.00 |
BUSINESS DETAILS
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Line of Business
: |
Manufacturer of textiles consisting of fabrics and garments |
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Products : |
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Exports to : |
Europe and U.S.A. |
PRODUCTION STATUS
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Particulars |
Unit |
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Actual
Production |
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Garment |
Pieces |
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|
12.000 Million |
GENERAL
INFORMATION
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Customers : |
Wholesalers, Distributors, and Retailers |
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No. of Employees
: |
2000 |
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Bankers : |
Jankalyan Sahkari Bank Limited Kalyan Janta Sahkari Bank Limited |
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Banking Relations : |
Satisfactory |
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Auditors : |
V. K. Beswal and Company Chartered Accounts Mumbai |
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Associates/Subsidiaries
: |
BRFL Europe B. V. |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5,00,00,000 |
Equity Shares |
Rs 10/- each |
Rs 500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4,89,79,686 |
Equity Shares |
Rs 10/- each |
Rs 489.797
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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|
|
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1] Share Capital |
489.797 |
329.636 |
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2] Share Application Money |
0.000 |
0.000 |
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3] Reserves & Surplus |
1043.845 |
129.355 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
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NETWORTH |
1533.642 |
458.991 |
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LOAN FUNDS |
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1] Secured Loans |
841.114 |
266.483 |
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2] Unsecured Loans |
108.751 |
6.059 |
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TOTAL BORROWING |
949.865 |
272.542 |
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DEFERRED TAX LIABILITIES |
14.888 |
3.236 |
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TOTAL |
2498.395 |
734.769 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
687.023 |
252.339 |
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Capital work-in-progress |
515.182 |
42.020 |
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INVESTMENT |
100.125 |
1.151 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
833.539
|
384.004 |
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Sundry Debtors |
346.159
|
208.141 |
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Cash & Bank Balances |
117.142
|
8.663 |
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Other Current Assets |
0.000
|
0.000 |
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Loans & Advances |
288.178
|
84.427 |
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Total
Current Assets |
1585.018
|
685.235 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
302.920
|
217.053 |
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Provisions |
86.033
|
32.602 |
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Total
Current Liabilities |
388.953
|
249.655 |
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Net Current Assets |
1196.065
|
435.580 |
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MISCELLANEOUS EXPENSES |
0.000 |
3.679 |
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TOTAL |
2498.395 |
734.769 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
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Total Income |
|
2253.983 |
1240.963 |
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Profit/(Loss) Before Tax |
|
254.620 |
91.972 |
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Provision for Taxation |
|
72.818 |
19.351 |
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Profit/(Loss) After Tax |
|
181.802 |
72.621 |
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Total Imports |
|
317.187 |
179.140 |
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Total Expenditure |
|
1999.363 |
1148.991 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 (1st Qtr.) |
30.09.2006 (2nd Qtr.) |
30.12.2006 (3rd Qtr.) |
|
Sales Turnover |
812.200 |
1032.600 |
1316.200 |
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Other Income |
3.100 |
12.800 |
11.400 |
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Total Income |
815.300 |
1045.400 |
1327.600 |
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Total Expenditure |
659.000 |
833.100 |
1041.700 |
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Operating Profit |
156.300 |
212.300 |
285.900 |
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Interest |
20.400 |
31.000 |
42.600 |
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Gross Profit |
135.900 |
181.300 |
24.3.300 |
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Depreciation |
12.600 |
14.600 |
35.100 |
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Tax |
41.000 |
5.200 |
50.600 |
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Reported PAT |
80.300 |
110.800 |
137.600 |
200606 Quarter 1
Notes
Expenditure
Includes (Increase) / Decrease in Stock Rs (73.287) Millions Consumption of Raw
Materials Rs 561.044 Millions Staff Cost Rs 66.386 Millions Job work Charges Rs
56.000 Millions Other Expenditure Rs 48.902 Millions Tax Includes Provision for
Current Tax Rs 40.321 Millions Deferred Tax Rs 1.988 Millions Fringe Benefit
Tax Rs 0.650 Millions EPS is Basic and Diluted Status of Investor Complaints
for the quarter ended June 30, 2006 Complaints Pending at the beginning of the
quarter Nil Complaints Received during the quarter 39 Complaints disposed off
during the quarter 39 Complaints unresolved at the end of the quarter Nil 1.
The above results were reviewed by the Audit Committee and approved by the
Board of Directors on July 27, 2006 and are subjected to Limited Review by the
statutory Auditors. 2. In terms of the objects of the issue, the funds raised
for the part financing the new project are being deployed accordingly. The
total expenditure incurred on the project as on June 30, 2006 is Rs 1382.312
Millions. The unutilized proceeds are lying with the Banks or temporarily
invested. 3. The Company operates in a single segment of manufacture and sale
of Textiles. 4. Previous year's figures have been regrouped / rearranged
wherever necessary.
200609 Quarter 2
Notes
EPS is
Basic and Diluted Status of Investor Complaints for the quarter ended September
30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter 65 Complaints disposed off during the quarter 65
Complaints unresolved at the end of the quarter Nil 1. The above results were
reviewed by the Audit Committee and approved by the Board of Directors on
October 31, 2006. 2. The results for the quarter July, 2006 to September, 2006
have been subjected to 'Limited Review' by the Auditors of the Company pursuant
to Listing Agreement with the Stock Exchanges. 3. The Commercial Production of
1,00,000 metres per day Processing facilities along with the utilities, part of
Company's Integrated Textile Project at Doddaballapur, Bangalore commenced in
the last week of September, 2006. 4. The Company operates in a single segment
of manufacture and sale of Textiles. 5. Previous year's figures have been
regrouped/ rearranged wherever necessary.
200612 Quarter 3
Notes
1.The above results
were reviewed by the Audit Committee and approved by the Board of Directors on
January 31, 2007 2.The results for the quarter October, 2006 to December, 2006
have been subjected to 'Limited Review' by the Auditors of the Company pursuant
to the Listing Agreement with the Stock Exchanges. 3.The Board of Directors in
their meeting held on January 19, 2007, has allotted 1,40,20,314 equity shares
of Rs. 10/- each at a premium of Rs. 200/- per share to Qualified Institutional
Buyers under Qualified Institutions Placement (QIP) in accordance with chapter
XIIIA of SEBI (Disclosure and Investor Protection) Guidelines, 2000. 4.
Additional obligation if any, in terms of revised AS-15, issued by The
Institute of Chartered Accountants of India, in relation to Employee Benefit,
will be recognized at the end of the financial year. 5.The details of Investors
complaints received and resolved from 01-10-2006 to 31-12-2006. Opening Balance
Received Resolved Pending NIL 7 7 NIL 6.The Company operates in a single
segment of manufacture and sale of Textiles. 7. Previous year's figures have
been regrouped/ rearranged wherever necessary.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio (Total Liability / Networth) |
0.61
|
0.59 |
1.05 |
|
Long Term Debt Equity Ratio |
0.38
|
0.20 |
1.05 |
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Current Ratio |
2.03
|
1.46 |
1.43 |
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TURNOVER RATIO |
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|
Fixed Assets |
3.66
|
5.47 |
8.31 |
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Inventory |
3.32
|
5.02 |
10.50 |
|
Debtors |
7.29
|
5.83 |
4.30 |
|
Interest Cover Ratio |
4.95
|
4.48 |
3.49 |
|
Operating Profit Margin |
17.25
|
12.79 |
8.58 |
|
Profit Before Interest and Tax Margin |
15.79
|
11.04 |
7.51 |
|
Cash Profit Margin |
10.46
|
8.52 |
4.16 |
|
Adjusted Net Profit Margin |
9.00
|
6.77 |
3.10 |
|
Return on Capital Employed |
19.87
|
28.15 |
36.89 |
|
Return On Net Worth |
18.25
|
27.27 |
31.18 |
STOCK PRICES
|
Face Value |
Rs. 10.00/ |
|
High |
Rs. 195.90 |
|
Low |
Rs. 187.70 |
LOCAL AGENCY FURTHER
INFORMATION
Fixed Assets
- Land
- Buildings
- Plant and Machinery
- Furniture and Fixtures
- Office Equipments
- Vehicles
- Computers
History
Subject
is a part of Bombay Rayon group was incorporated as Mudra Fabrics Private
Limited (MFL) on 21.05.1992. On 13.10.1992 the Company was converted into a
public limited company. Subsequently, on 30.09.2004, name of the company was
changed to Bombay Rayon Fashions Limited (BRFL). In March 2005, with a view to
consolidate business of our Group, Bombay Rayon Private Limited (BRPL) was
amalgamated with the Company after the High Court of Bombay approved the Scheme
of Amalgamation effective 01.04.2004 and two partnership firms of the Group,
i.e, B R Exports and Garden City Clothing were taken over by BRPL and BRFL
respectively.
After the amalgamation of BRPL with BRFL all the three entities, i.e., BRPL,
GCC and B R Exports have merged into their Company resulting into consolidation
of businesses from fabrics, design development and garments under one corporate
roof
The Company is mainly engaged in the business of manufacturing of textiles
consisting of fabrics and garments. The company has its plant for weaving of
fabrics at Bhiwadi, Navi Mumbai, Silvassa. Plant for Garment manufacturing at
Bangalore, and Plant for Yarn Dyeing, Processing and Garment
Manufacturing.
During 2005-2006, the company came out with a maiden IPO of 1,34,75,000 Equity
Shares of Rs.10/- Each, Fully paid up for cash at premium of Rs 60/- per equity
shares.
The company has also become one of the largest Garment Manufacturer of designer
shirts for exports with the increase in Garment capacity from 1.8 million
pieces p. a to 12 million pieces p.a. The Company has already added in its
customer list many well known brands/ labels from The United States of America
(USA)
and European Countries
The company focuses to convert the Company into 'Complete Apparel Company' with
state of the art designing and sampling set ups and entire value chain from
yarn dyeing, weaving, processing and manufacturing of fabrics and garments.
With the expansion capacities going on stream soon, the profile of the Company
will change from a fabric company to an integrated garment manufacturing
company for exports. With the completion of new project, the total Garment
Manufacturing capacity will increase to 18 million pieces p.a. The plans are
being drawn to increase it to 30 million pieces p.a. (1,00,000 pieces per day)
within the next financial year.
During
the year under review 2005-2006, a wholly - owned Subsidiary of the Company was
incorporated on 05.09.2005 in Almere, Netherlands, under the name BRFL Europe
B.V.
The Company has been allotted 20.16 acres of land in the Apparel Park at
Doddaballapur for setting up an integrated textile project of yarn dyeing,
weaving, process house and garment manufacturing. Based on the Techno-Economic
Feasibility Report prepared by Gherzi Eastern Limited, Mumbai, the total cost
of the Integrated Textile Project at Doddaballapur, Bangalore at the time of
Initial Public Issue was estimated at Rs.1617.2 Millions. The Company has
expanded the scope of the aforesaid project in view of setting up a new
Greenfield Garment facility for 7.8 Million pieces p. a at Bangalore. The total
cost after the new plans has increased to Rs. 2467.200 Millions.
The New Garment Unit at Bangalore with an installed capacity for manufacturing
7.8 Million pieces of Garments per annum became operational with commencement
of commercial production from 6th March 2006. The project execution is at an
advanced stage and is scheduled to be fully commercially operational in the
second quarter of the current year.
Operations
The turnover (gross) of the Company increased by 88% to Rs.2020.465 Millions
during the year under review out of which the Export Sales has increased to
Rs.634.729 Millions from 39.945 Millions (16 times). The Company has posted an
excellent performance as Profit before Tax has increased remarkably by to
Rs.254.620 Millions in comparison with Rs.91.972 Millions in the previous year.
After providing for taxation, the Company has been able to register profit
after tax to the tune of Rs.181.802 Millions as against Rs.726.21 Millions for
previous year, registering a substantial rise of 150%.
With the installed capacity of Garment manufacturing increasing from 1.8
million pieces p. a to 12 million pieces p.a., the Company has become one of
the largest Garment Manufacturer of designer shirts for exports. The Company
has already added in its customer list many well known brands/labels from The
United States of America (USA) and European Countries.
The
focus of growth is to convert the Company into 'Complete Apparel Company' with
state of the art designing and sampling set ups and entire value chain from
yarn dyeing, weaving, processing and manufacturing of fabrics and garments.
With the expansion capacities going on stream soon, the profile of The Company
will change from a fabric company to an integrated garment manufacturing
company for exports. With the completion of new project, the total Garment
Manufacturing capacity will increase to 18 million pieces p.a. The plans are
being drawn to increase it to 30 million pieces p.a. (100000 pieces per day)
within the next financial year.
Dividend
Considering
the surplus available, the Board of Directors is pleased to recommend a
Dividend of Re. 1 per Equity Share (10%) for the approval.
Initial Capital Issue:
The
Company has successfully completed its maiden public issue of 1,34.75,000
Equity Shares of Rs.10/- each fully paid - up for cash at a premium of Rs.60/-
per equity share. The aforesaid public issue received an overwhelming response
and was oversubscribed by 17.26 times. Post completion of the Public Issue, the
total paid - up equity share capital of the Company is 4,89,79,686 Equity
Shares of Rs.10/- each fully paid-up aggregating to Rs.489.797 Millions. The
equity shares of the Company have been listed with effect from 5th December
2005 on National Stock Exchange of India Limited and Bombay Stock Exchange
Limited. Before IPO. Export Import Bank of India subscribed for 10,00,000
equity shares of Rs.10/- each at a premium of Rs.40/-.
The Board of Directors take this opportunity to thank all the investors for the
confidence shown in the Company and its management.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.44.17 |
|
UK Pound |
1 |
Rs.85.58 |
|
Euro |
1 |
Rs.58.67 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|