MIRA
INFORM REPORT
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Report Date : |
30.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
PHOENIX INDUSTRIES PRIVATE LIMITED |
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Registered Office : |
243, Udyog Bhawan, Sonawala Road, Goregaon (East), Mumbai -
400 063, 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 : |
19-05-1993 |
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Com. Reg. No.: |
11-72060 |
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CIN No.: [Company
Identification No.] |
U45200MH1993PTC072060 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMP16189F / MUMP17739B |
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PAN No.: [Permanent
Account No.] |
AAACP3819R |
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Legal Form : |
Private limited liability company. |
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Line of Business : |
Manufacturing, trading, importing, exporting and also
acting as agent for all types of ferrous and non-ferrous metals, alloys,
including billets, ingots and castings. |
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 : |
USD300000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Their 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 : |
243, Udyog Bhawan, Sonawala Road, Goregaon (East), Mumbai -
400 063, Maharashtra, India |
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Tel. No.: |
91-22-28755701/28721054 |
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Mobile No.: |
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Fax No.: |
91-22-28755501 |
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E-Mail : |
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Factory 1 : |
Plot No. 15, Survey No. 101, Rakoli Village, Silvassa –
396 230, Union Territory of Dadra and Nagar Haveli |
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Tel. No.: |
91-260-2640231/2640321 |
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Area : |
1500 sq. mts. |
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Location : |
Owned |
DIRECTORS
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Name : |
Mr. Ramanand Shyamsunder Sanghai |
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Designation : |
Director |
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Address : |
1301, Minaxi Towers, K.V. Marg, Goregaon (East), Mumbai 400 063, Maharashtra, India |
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Date of Birth/Age : |
08.12.1962 |
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Date of Appointment : |
30.08.1993 |
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Name : |
Mr. Anand Shyamsunder Sanghai |
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Designation : |
Director |
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Address : |
1301, Minaxi Towers, K.V. Marg, Goregaon (East), Mumbai 400 063, Maharashtra, India |
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Date of Birth/Age : |
19.05.1970 |
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Date of Appointment : |
30.08.1993 |
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Name : |
Mr. Shyamsunder Chunilal Sanghai |
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Designation : |
Director and Chairman |
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Address : |
1301, Minaxi Towers, K.V. Marg, Goregaon (East), Mumbai 400 063, Maharashtra, India |
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Date of Birth/Age : |
09.04.1938 |
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Date of Appointment : |
01.04.1999 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Ramanand Shyamsunder Sanghai Mr. Shyamsunder Sanghai |
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354150 |
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Mr. Anand Shyamsunder Sanghai Mr. Shyamsunder Sanghai |
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374400 |
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Mr. Shyamsunder Sanghai Mr. Chunilal Agarwal |
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432700 |
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Mr. Ramanand Sanghai (HUF) |
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72000 |
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Mr. Shyamsunder Sanghai (HUF) |
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69750 |
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Mrs. Anandidevi S. Sanghai Mr. Shyamsunder Sanghai |
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358600 |
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Mrs. Sulochana P. Nathani Mr. Prakash Nathani |
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450 |
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Mrs. Girija Jain |
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450 |
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Anand Sanghai (HUF) |
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51750 |
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Mrs. Alka A. Sanghai Mr. Anand Sangai |
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145950 |
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Mrs. Sahila R. Sanghai Mr. Ramanand Sanghai |
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139800 |
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Total |
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2000000 |
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BUSINESS DETAILS
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Line of Business : |
Manufacturing, trading, importing, exporting and also
acting as agent for all types of ferrous and non-ferrous metals, alloys,
including billets, ingots and castings. |
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Products : |
Non Ferrous Metal Alloys |
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GENERAL
INFORMATION
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Suppliers : |
· Hindalco Industries Limited · R.M. Mehta and Company · Hindustan Zinc limited · Indian Oil Corporation Limited · L.G. Alloys Private Limited · National Aluminium Company Limited · National Aluminium Company Limited-Vaishag · Wesman Thermal Engg. · Sainath Clearing Agency · Ambtca Metal Corporation · Kothari Metal Limited · Kothari Metals Limited (Import) · Shree Arihant Metals · Sai Clearing Agency · K.R. Motor · National Steel Engg. Company · Palco Metals Limited · Phoolchand Bhagatsingh · Saru Alkoh Chemicals Limited Western Mehta Flux Private Limited |
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Customers : |
· Aar Aar Equipments · Inductotherm India · Control and Switchgears · Crompton Greaves Limited · M.S. Metal Works · Raas Control · Shakin Industries · Paras Motor · Steelco Gujarat Limited · Sumeka Pressure Castings Vanaz Engineers Private Limited |
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No. of Employees : |
350 |
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Bankers : |
Oriental Bank of Commerce Rajnigandha Shopping Centre, Gokuldham, Film City Road,
Goregaon (East), Mumbai - 400 063, Maharashtra, India |
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Facilities : |
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Banking
Relations : |
Satsiacfatory |
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Auditors : |
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Name : |
J. L. Bhatt and Company Chartered Accountants |
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Address : |
Yusuf Building, 2nd Floor, 43, M.G. Road, Mumbai – 400 023, Maharashtra |
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Tel. No.: |
91-22-22043311 / 56314310 |
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Mobile No.: |
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Fax No.: |
91-22-56314309 |
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E-Mail : |
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Associates/Subsidiaries : |
Ohm Sales Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,000,000 |
Equity Shares |
Rs. 10 each |
Rs. 10.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,000,000 |
Equity Shares |
Rs. 10 each |
Rs. 10.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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20.000 |
10.000 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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61.525 |
64.146 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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81.525 |
74.146 |
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LOAN FUNDS |
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1] Secured Loans |
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42.959 |
14.664 |
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2] Unsecured Loans |
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37.004 |
6.385 |
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TOTAL BORROWING |
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79.963 |
21.049 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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161.488 |
95.195 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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21.542 |
18.035 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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25.733 |
8.298 |
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Sundry Debtors |
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111.064 |
69.479 |
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Cash & Bank Balances |
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0.385 |
1.594 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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26.551 |
9.815 |
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Total
Current Assets |
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163.733 |
89.186 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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18.987 |
9.326 |
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Provisions |
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4.800 |
2.700 |
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Total
Current Liabilities |
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23.787 |
12.026 |
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Net Current Assets |
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139.946 |
77.160 |
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MISCELLANEOUS EXPENSES |
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TOTAL |
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161.488 |
95.195 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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760.493 |
561.953 |
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Other Income |
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0.000 |
0.000 |
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Total Income |
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760.493 |
561.953 |
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Profit/(Loss) After Tax |
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14.983 |
10.993 |
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Expenditures : |
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Interest |
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4.191 |
2.122 |
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Other Expenditure |
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741.318 |
548.838 |
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Total Expenditure |
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745.509 |
550.960 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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1.97 |
1.95 |
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Debt Equity Ratio (Total Liability/Networth) |
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0.29 |
0.16 |
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Current Ratio (Current Asset/Current Liability) |
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1.59 |
7.41 |
LOCAL AGENCY FURTHER
INFORMATION
The company’s fixed assets of important value include freehold land, factory building, Flat at Silvassa, office premises, plant and machinery, furniture and fixtures, vehicles and computers.
Contingent Liability Not Provided for :
In respect of Bills Discounted with Banks : Rs. 1.187 millions
Capital Commitments remaining to be executed amounting to Rs. Nil
As the company has set up its manufacturing unit at Silvassa, union Teritory of Dadra and Nagar Haveli, a notified backward area, the company will be entitled to tax benefit under section 80 I A of the Income Tax Act, 1961. Provision for Taxation has been made after taking into account the Tax benefit under the said Section 80 I A
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Name of the company |
PHOENIX INDUSTRIES LIMITED |
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Presented By |
ORIENTAL BANK OF COMMERCE GOREGOAN (E) BRANCH, BOMBAY
–400063 |
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1) Date and description of instrument creating the change |
20th April 1999 Hypothecation of Assets Agreement for Cash Credit / Overdraft / Demand Loan Facility. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 33.183 millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
To secure the due repayment of the Banking limits sanctioned to the Borrowers and interest thereon first charge and Hypothecation of the Plant and Machinery (by way of additional security) worth Rs. 6.117 millions w.d.v. as on 31.03.99 present and future lying in the Borrowers premises or elsewhere. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest at the rate of 3.82 % p.a. over the prime lending rate of the Bank with a minimum of 15.82 % calculated on daily balance and charge on quarterly rest or at such rate of Interest as may be determined by the Bank from time to time as per directives of the RBI Penal interest at 2.04 % p.a. in case of default. |
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5) Name and Address and description of the person entitled to the charge. |
Oriental Bank of Commerce Rajnigandha Shopping Centre Gokuldham, Film City Road Goregaon (East), Mumbai - 400 063, Maharashtra, India |
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6) Date and brief description of instrument modifying the charge |
10th September, 1999 Hypothecation of assets Agreement for cash credit / overdraft/demand loan facility. |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
At the request of the Borrower the Bank has reduced the total Banking limits from Rs. 33.183 millions to Rs. 24.541 millions according to that extent. Against the same security as stated in column no 3 above. Interest at the rate of 3.81 % p.a. over the prime lending rate of the Bank with a minimum of 15.81 % calculated on daily balance and charge on quarterly rest of at such rate of Interest as may be determined by the Bank from time to time as per the directives of the RBI Penal interest at 2.04 % in case of default. |
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Name of the company |
PHOENIX INDUSTRIES LIMITED |
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Presented By |
ORIENTAL BANK OF COMMERCE GOREGOAN (E) BRANCH, BOMBAY
–400063 |
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1) Date and description of instrument creating the change |
Equitable Mortgage Deed dated 19/11/1995 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 10.000 millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Equitable Mortgage by deposit of Title deeds of Office premises at Gala no 243 and 244, Udyog Bhawan, Sonawalla Cross Road, Goregaon (E), Mumbai-400063 Plot No 15, Admeasuring 1500 sq. mts. On part of servey nos 101, Paiki of village Rakholi Silvassa, Union Territory of Dadra and Nagar Haveli. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
To secure the due repayment of the Bank on demand for all the money now owing or which shall at any time hereinafter be owing from the borrower in respect of advances granted by way of Term Loan, Cash Credit and UBD facilities together with interest(incl penal interest as per directives of RBI) , cost and other charges thereon. |
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5) Name and Address and description of the person entitled to the charge. |
Oriental Bank of Commerce Rajnigandha Shopping Centre Gokuldham, Film City Road Goregaon (East), Mumbai - 400 063, Maharashtra, India |
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6) Date and brief description of instrument modifying the charge |
10th September, 1999 Letter of continuing security. |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
At the request of the Borrower the Bank has reduced the total Banking limits from Rs. 35.500 millions to Rs. 24.541 millions according the charge stand modified form Rs. 35.500 millions to Rs. 24.541 millions. Against the same security as stated in column no 3 above. Other terms and conditions remains unchanged. |
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Name of the company |
PHOENIX INDUSTRIES LIMITED |
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Presented By |
ORIENTAL BANK OF COMMERCE GOREGOAN (E) BRANCH, BOMBAY
–400063 |
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1) Date and description of instrument creating the change |
Agreement of Hypothecation of Goods dated 24.06.1995 Agreement of Hypothecation of Book debts dated 24.06.1995 (both the above documents constitute single charge of Rs. 5.000 millions) |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 5.000 millions which includes Rs. 1.000 millions sub limit against Hypothecation of Book debts |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation over stock of Raw Material, work in process, finished goods of Non ferrous Metal Alloys Assignments of Book debts of reputed companies, not older than 45 days. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Goods : Margin 25 % Rate of interest 17.75 % Book debts Margin 50 % Rate of interest 17.75 % |
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5) Name and Address and description of the person entitled to the charge. |
Oriental Bank of Commerce Rajnigandha Shopping Centre Gokuldham, Film City Road Goregaon (East), Mumbai - 400 063, Maharashtra, India |
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6) Date and brief description of instrument modifying the charge |
10th September, 1999 Supplement Agreement Agreement for hypothecation Book Debts |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
At the request of the Borrower the Bank has enhanced the cash credit facility enhanced from Rs. 15.000 millions which includes Rs. 1.000 millions sub limit against Hypothecation of Book debts and accordingly the charge stand modified from Rs. 13.500 millions to Rs. 15.000 millions. Against the same security as stated in column no 3 above. Interest at the rate of 3.81 % p.a. over the prime lending rate of the Bank with a minimum of 15.81 % calculated on daily balance and charge on quarterly rest of at such rate of Interest as may be determined by the Bank from time to time as per the directives of the RBI Penal interest at 2.04 % in case of default. |
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Name of the company |
PHOENIX INDUSTRIES LIMITED |
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Presented By |
ORIENTAL BANK OF COMMERCE GOREGOAN (E) BRANCH, BOMBAY
–400063 |
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1) Date and description of instrument creating the change |
Agreement for hypothecation of movable assets to secure a term loan dated 29/06/1995 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 3.500 millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation over Plant and Machinery i.e. rotary furnace, trolley, 2 turn table chimney, interconnection duct die, blower, zing furnace, head and overhead crane etc. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
An installment of Rs. 0.093 millions may be recorded from our cash credit account every month including interest to be adjusted in 27 equity monthly installment. Margin – 25 % Rate of interest : 17.75 % |
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5) Name and Address and description of the person entitled to the charge. |
Oriental Bank of Commerce Rajnigandha Shopping Centre Gokuldham, Film City Road Goregaon (East), Mumbai - 400 063, Maharashtra, India |
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6) Date and brief description of instrument modifying the charge |
Not Available |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Available |
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Name of the company |
PHOENIX INDUSTRIES LIMITED |
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Presented By |
ORIENTAL BANK OF COMMERCE GOREGOAN (E) BRANCH, BOMBAY
–400063 |
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1) Date and description of instrument creating the change |
Agreement for over draft dated 04.12.1996 Agreement regarding bills purchased/bills discounted and advanced against bills in course of collection 04.12.1996 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 6.000 millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Bills/invoices with maximum usance of 60 days accompanied by receipted challans/inspections notes drawn on different reputed limited companies. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Margin – 25 % Rate of interest : 17.75 % |
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5) Name and Address and description of the person entitled to the charge. |
Oriental Bank of Commerce Rajnigandha Shopping Centre Gokuldham, Film City Road Goregaon (East), Mumbai - 400 063, Maharashtra, India |
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6) Date and brief description of instrument modifying the charge |
Not Available |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Available |
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Name of the company |
PHOENIX INDUSTRIES LIMITED |
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Presented By |
ORIENTAL BANK OF COMMERCE GOREGOAN (E) BRANCH, BOMBAY
–400063 |
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1) Date and description of instrument creating the change |
Agreement of Hypothecation of Goods dated 24.06.1995 Agreement of Hypothecation of Book debts dated 24.06.1995 (both the above documents constitute single charge of Rs. 5.000 millions) |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 5.000 millions which includes Rs. 1.000 millions sub limit against Hypothecation of Book debts |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation over stock of Raw Material, work in process, finished goods of Non ferrous Metal Alloys Assignments of Book debts of reputed companies, not older than 45 days. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Goods : Margin 25 % Rate of interest 17.75 % Book debts Margin 50 % Rate of interest 17.75 % |
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5) Name and Address and description of the person entitled to the charge. |
Oriental Bank of Commerce Rajnigandha Shopping Centre Gokuldham, Film City Road Goregaon (East), Mumbai - 400 063, Maharashtra, India |
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6) Date and brief description of instrument modifying the charge |
Supplement Agreement dated 4th February, 1998 for Rs. 13.500 millions |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
The original charge dated 24/06/1995 for Rs. 5.000 millions was modified to Rs. 7.500 vide supplement agreement dated 09.12.1995 and future modified to Rs. 10.500 vide supplement agreement dated 4th December, 1996 which is now further modified by granting an additional sum of Rs. 3.000 millions thereby enhancing the limit from Rs. 10.500 millions to Rs. 13.500 millions. Against the same security as stated in column no 3 above. Interest at the rate of 2 % p.a. over the prime lending rate of the Bank with a minimum of 16.33 % calculated on daily balance and charge on quarterly rest of at such rate of Interest as may be determined by the Bank from time to time as per the directives of the RBI. |
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.43.47 |
|
UK Pound |
1 |
Rs.85.36 |
|
Euro |
1 |
Rs.57.89 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--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 |
NO |
|
--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
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 |
|