MIRA
INFORM REPORT
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Report Date : |
12.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
THE NEWSPRINT TRADING AND DISTRIBUTING CORPORATION LIMITED |
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Registered Office : |
101, 1st Floor, 229-231, Perin Nariman Street, Fort,
Mumbai – 400 001, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
08.09.1958 |
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Com. Reg. No.: |
11-11171 |
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CIN No.: [Company
Identification No.] |
U51900MH1958PLC011171 |
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IEC No.: |
039 2027540 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMT09646A |
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PAN No.: [Permanent
Account No.] |
AAACT1786B |
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Legal Form : |
Closely held Public Limited Liability Company. |
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Line of Business : |
Importing, Exporting, Buying, Selling, Distributing and otherwise dealing in all kinds of newsprint paper and/or mechanical printing paper having mechanical wood pulp content of not less than 50%. It is also carrying on the business of commission agents, workers, indentors or contractors in respect of any kind of the said paper. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 32000 |
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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 company having satisfactory track. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Payments are usually correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
101, 1st Floor, 229-231, Perin Nariman Street, Fort, Mumbai – 400 001, Maharashtra, India |
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Tel. No.: |
91-22-22617272, 22617878, 22617299 |
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Fax No.: |
91-22-22611207 |
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E-Mail : |
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Website : |
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Area : |
2500 sq. ft |
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Location : |
Owned |
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Factory 1 : |
Gala No.5/6, Tantia Industrial Estate, Sitaram Mill Compound, Lower Parel, Mambai, India |
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Tel. No.: |
91-22-23098182 |
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Area : |
1500 sq. ft. |
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Location : |
Owned |
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Factory 2 : |
Gala No.5/6, Tantia Industrial Estate, Sitaram Mill Compound, Lower Parel, Mambai, India |
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Area : |
1000 sq. ft. |
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Location : |
Owned |
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Branch 1 : |
203, Bora Bazar Street, 1st Floor, Fort, Mumbai – 400001 |
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Tel. No.: |
91-22-22617299 |
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Fax No.: |
91-22-22611207 |
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Area : |
2000 sq. ft. |
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Location : |
Owned |
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Branch 2 : |
Ground Floor, Mapla House, 202, Bora Bazar Street, Fort, Mumbai – 400001 |
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Area : |
1000 sq. ft. |
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Location : |
Owned |
DIRECTORS
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Name |
Mr. Mulchand L. Shah |
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Designation |
Chairman |
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Address |
203, Bora Bazar Street, 1/F, Fort, Mumbai – 400 001, Maharashtra, India |
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Date of Birth |
05.07.1944 |
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Experience |
43 years |
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Date of Appointment |
27.09.1990 |
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Name |
Mr. Hitesh M. Shah |
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Designation |
Managing Director |
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Address |
203, Bora Bazar Street, 1/F, Fort, Mumbai – 400 001, Maharashtra, India |
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Date of Birth |
08.06.1970 |
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Qualification |
B. Com. |
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Experience |
14 years |
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Date of Appointment |
29.09.1989 |
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Name |
Mr. Kalyanji L. Shah |
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Designation |
Director |
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Address |
203, Bora Bazar Street, 1/F, Fort, Mumbai – 400 001, Maharashtra, India |
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Date of Birth |
12.08.1946 |
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Experience |
36 years |
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Date of Appointment |
27.09.1990 |
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Name |
Mr. Jayesh M. Shah |
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Designation |
Whole-time Director |
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Address |
203, Bora Bazar Street, 1/F, Fort, Mumbai – 400 001, Maharashtra, India |
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Date of Birth |
18.05.1968 |
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Qualification |
B. Com. |
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Experience |
16 years |
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Date of Appointed |
29.09.1989 |
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Name |
Mr. Prem Kishore Gupta |
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Designation |
Director |
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Address |
R-215, Greater Kailash, New Delhi |
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Date of Birth |
08.06.1970 |
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Date of Appointment |
29.09.1989 |
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Name |
Mr. Anish Kalyanji Shah |
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Designation |
Director |
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Address |
Block 15, 3rd Floor, BLK 15, Windsor Chamber, 7, Cawasji Patel Street, Fort Mumbai – 400 001 |
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Date of Birth |
23.06.1976 |
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Qualification |
B. Com. |
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Experience |
8 years |
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Date of Appointment |
29.06.2004 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Mr. Mulchand L. Shah and Manjula M. Shah |
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102000 |
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Mr. Kalyanji L. Shah and Gunvanti K. Shah |
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10000 |
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Mrs. Manjula M. Shah and Mulchand L. Shah |
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18000 |
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Gunvanti K. Shah and Kalyanji Shah |
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6000 |
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Mr. Jayesh Mulchand Shah |
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10000 |
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Bijal M. Shah |
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200 |
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Hitesh M. Shah and Mulchand Lalji Shah |
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10000 |
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Rajesh M. Shah and Mulchand Lalji Shah |
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10000 |
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Rashmi K. Shah and Kalyanji L. Shah |
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300 |
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Paresh K. Shah and Kalyanji L. Shah |
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400 |
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Anish K. Shah and Kalyanji L. Shah |
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4000 |
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Raghavji M. Gala and Jaya R. Gala |
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24000 |
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Vasant S. Savla |
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50 |
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Manekchand S. Bengani |
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100 |
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Manilal J. Shah and Jayantilal Y. Shah |
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500 |
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Anilkumar B. Shah |
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50 |
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Dhiruben D. sheth and Sukumar D. sheth |
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200 |
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Swaldas K. Munyal and Vishindas K. Munyal and Asha V. Munyal |
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100 |
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Sakina M. Hawa |
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50 |
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J.P. Patel (BOM) Private Limited |
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100 |
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Kantilal M. Parikh |
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50 |
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Dhiraj A. Shah and Meena D. Shah |
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100 |
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Arzoo H. Shah and Hitesh M. Shah |
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50 |
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Shantilal S. Shah |
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50 |
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Abdullabhai F. Kagalwala |
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200 |
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Girdharilal Damodar Private Limited |
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100 |
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Indravadan M. Parikh |
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50 |
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Krishnakumar L. Ganantra |
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50 |
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Mukesh K. Sheth |
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100 |
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Ramanand Kapoor |
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100 |
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Ramesh P. Chugani and Gauri R. Chugani |
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50 |
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Ramesh T. Chiklikar |
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50 |
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Vinod S. Shah |
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50 |
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Arzoo H. Shah |
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100 |
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Equity Share
Breakup |
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Category |
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Percentage of
Holding |
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Bodies corporate |
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0.10 |
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Directors or relatives of directors |
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87.15 |
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Other top fifty shareholders |
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12.75 |
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Total
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Importing, Exporting, Buying, Selling, Distributing and otherwise dealing in all kinds of newsprint paper and/or mechanical printing paper having mechanical wood pulp content of not less than 50%. It is also carrying on the business of commission agents, workers, indentors or contractors in respect of any kind of the said paper. |
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Products : |
§ Newsprint Paper § Mechanical Printing Paper
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Agencies Held : |
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Imports : |
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Countries : |
Germany, Switzerland, Austria and Sweden |
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Terms : |
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Selling : |
Cash or Credit (30-90 days) terms |
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Purchasing : |
L/C or Cash (60-90 days) terms |
GENERAL
INFORMATION
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Suppliers : |
Some of the Major Suppliers of the company are : v Kalten Paper BV v Shah Pulp & Paper Mills Limited v Jacob Juggerson Paper v Daman Ganga Papers Limited v Sun Export Corporation v Amrita Paper Centre |
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Customers : |
Its major types of customers are End Users.
Some of the Major Customers of the company are : v Capital Market Publishers (India) Limited v Courier Publications Private Limited v CRISIL v Express Publications (Madurai) Limited v Laxmi Prakashan Private Limited v Rana Newsprint & Papers Limited v Sakal Papers Limited v Mumbai Grahak Panchayat v Radine Graphische Papier GMBH v Special Audience Publication Private Limited v Indian National Press India Limited v Shatkar Prakashan Private Limited v Sumangal Press Private Limited |
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No. of Employees : |
Around 21 |
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Bankers : |
v Union Bank of India, Bombay Samachar Marg, Mumbai – 400 023 v Bombay Mercantile Co-op Bank Limited, Foreign Exchange Division, Uttam House, 4th Floor, P.D’ Mello Road, Carnac Bunder, Mumbai – 400001 v Bank of Baroda, Bori Bunder Branch, Mumbai – 400 001 |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Rajeev Shah & Company Chartered Accountants |
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Address : |
3/4, Behramji Mansion, 1st Floor, 18, Homji Street, Sir P. M. Road, Fort, Mumbai – 400 001 |
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Tel. No.: |
91-22-22665425 |
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E-Mail : |
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Associates/Subsidiaries : |
v Mulchand Lalji & Company 203, Bora Bazar Street, Fort, Mumbai –400001 Line of Business: Paper Merchants v Kalpana Properties Private Limited. v Newsprint Trading & Sales Corporation v Shree Gajraj Property Organizers Private Limited 203, Bora Bazar Street, Fort, Mumbai –400001 Line of Business: Construction |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
500000 |
Equity Shares |
Rs.10/- Each |
Rs.5.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
197,350 |
Equity Shares |
Rs.10/- Each |
Rs.1.973 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
1.973 |
1.981 |
1.981 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
6.020 |
4.785 |
4.164 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
7.993 |
6.766 |
6.145 |
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LOAN FUNDS |
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1] Secured Loans |
0.012 |
0.152 |
0.000 |
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2] Unsecured
Loans |
18.374 |
10.168 |
8.594 |
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TOTAL BORROWING
|
18.386 |
10.320 |
8.594 |
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DEFERRED TAX
LIABILITIES |
0.045 |
0.022 |
0.037 |
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TOTAL
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26.424 |
17.108 |
14.776 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
3.418 |
1.202 |
1.148 |
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Capital work-in-progress
|
0.000 |
0.000 |
0.000 |
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INVESTMENT
|
0.190 |
0.127 |
0.130 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS &
ADVANCES
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Inventories
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0.086 |
0.103 |
1.573 |
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Sundry Debtors
|
18.899 |
9.331 |
8.922 |
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Cash & Bank Balances
|
0.355 |
0.931 |
0.900 |
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Other Current Assets
|
6.870 |
6.616 |
5.733 |
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Loans & Advance
|
0.000 |
1.380 |
0.000 |
Total Current Assets
|
26.210 |
18.361 |
17.238 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities |
3.393 |
2.582 |
3.740 |
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Provisions |
0.000
|
0.000 |
0.000 |
Total Current Liabilities
|
3.393
|
2.582
|
3.740
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Net Current Assets
|
22.816 |
15.779 |
13.498 |
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TOTAL
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26.424 |
17.108 |
14.776 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
34.830 |
18.598 |
0.354 |
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Other Income |
0.016 |
0.076 |
7.101 |
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Total Income |
34.846 |
18.674 |
7.455 |
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Profit/(Loss) Before Tax |
2.152 |
0.992 |
1.327 |
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Provision for Taxation |
0.918 |
0.371 |
0.491 |
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Profit/(Loss) After Tax |
1.234 |
0.621 |
0.836 |
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Earnings in Foreign Currency : |
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Total Earnings |
1.680 |
0.000 |
0.105 |
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Expenditures : |
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Purchases made for re-sale |
24.858 |
11.743 |
0.000 |
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Salaries, Wages, Bonus, etc. |
0.265 |
0.179 |
0.000 |
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Managerial Remuneration |
0.540 |
0.535 |
0.000 |
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Payment to Auditors |
0.022 |
0.020 |
0.000 |
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Interest |
2.444 |
1.205 |
1.320 |
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Insurance Expenses |
0.021 |
0.047 |
0.000 |
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Power & Fuel |
0.298 |
0.240 |
0.000 |
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Depreciation & Amortization |
0.470 |
0.386 |
0.349 |
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Other Expenditure |
3.776 |
3.327 |
4.460 |
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Total Expenditure |
32.694 |
17.682 |
6.129 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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PAT / Total Income |
(%) |
3.54
|
3.33 |
11.21 |
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Net Profit Margin (PBT/Sales) |
(%) |
6.18
|
5.33 |
374.86 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
7.26
|
5.07 |
7.22 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.09 |
0.22 |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.72
|
1.91 |
2.01 |
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Current Ratio (Current Asset/Current Liability) |
|
7.72
|
7.11 |
4.61 |
LOCAL AGENCY
FURTHER INFORMATION
Trade References:
· Radine Graphische Papier GMBH
· Jacob Jurgenen Papier
· Zellstoff GMBH
Fixed Assets
- Motor Car
- Motor Bike
- Fax Machine
- Air Conditioner
- Computer
- Cellular Phone
- Furniture and Fixture
- Printer and Scanner
- Tempo
As Per Web
Details
Profile
Subject was incorporated in 1958
and is the oldest and the first agent registered with Registrar of Newspapers
in India.
Subject mainly deals in Newsprint paper, SC Paper and Light Weight
Coated paper and their client list includes all the leading Newspapers and
Magazines in India.
Subject are leading indentors for Glassine Base Paper,
Silicon coated Bleached kraft and Self Adhesive paper.
Subject also import and indent all other kinds of paper
namely, Woodfree Coated and Uncoated, Ivory Board, All kinds of Kraft paper,
Digital Paper, Inject Paper, Tissue paper etc.
Subject buy paper from all over the world from different
producers, and they sell paper to end users in India. They keep stocks in
Mumbai and also at principal North Sea and Baltic Sea ports
This enables them to fulfil most
orders from their stocks within 24 hours.
The company has earned an impeccable and enviable
reputation over it's fair and professional dealings over it's long years of
dependable business in the industry. A company looked up to and respected for
their commitment to their customers.
Driving Force
The Directors of NTDC are
a group of dynamic personalities hailing from the predominantly business clan of
the Kutchi Jain Community. Having imbibed the business blood from their
forefathers, they are a god fearing community, who believe in the progress of
society and humanity in general.
They form a pool of various abilities, spanning over
generations.. combining the experience that comes through sheer hard work and
experience.. having the fathers who worked through their grit and determination
for the betterment of their lot, and built an empire today from the ashes of
nothing... passing on the torch to the young blood who bring in their dynamism
to the business today.. ready to take on the challenge of the new technology
changes.. today's generation.. which is techno savvy.. embracing the values of
their forefathers and the advent of the globalisation of the businesses all in
one step.
Mr. Mulchand Shah is
the Chairman of the company. He is 57 and has a large and rich experience of
more than 40 years in this trade. He started his business at the very tender
age of 15. His own company M/s Mulchand Lalji & Co., Mumbai has the
goodwill of delivering paper on demand no matter what the circumstances. His
long years in the trade have afforded him an impeccable reputation which only
the most fair and professional dealings with a humane touch can be earned by a
business person. A personality looked up to in the industry.
Mr. Kalyanji Shah is
Director since 1986 and is also partner in Mulchand Lalji & Co. He also
started his business career at the age of 15 and has always done business under
the patronship of his elder brother, Mulchandji Shah. He is 52 with the
experience of 37 years in this trade, and shares the qualities of his brother.
Mr. Jayesh Shah is 34
and has an experience of 12 years in this business. He is an expert in the
technical aspects of paper and also looks after the Sales of the company.
Mr. Hitesh Shah is 32
and is the Managing Director of the Company. Purchases and Administration are
under the ambit of his portfolios. A live wire personality always on the move,
he inspires the will to work amongst the all and sundry who come in contact
with him.
Apart from a team of two experienced and two young energetic Directors, the
company has the staff of 9 skilled members with not just business expertise but
also flexibility and a determination to make the seemingly impossible,
possible.
Products and Services
Subject is a major Newsprint Dealer supplying Newsprint to many leading Newspapers and Magazines of India. They are Dealers for one of the most technologically advanced Newsprint Mills of India. They are also importers for Light Weight Coated from some of the leading Scandinavian Paper Mills from the world. Besides this, they are the leading indentors of Glassine Base Paper, SIlicone Coated Bleach Kraft and Self Adhesive Paper in the country.
They are
committed and dedicated to supplying publication papers to some of the leading
newspapers and magazines all over India, supplying them with consistent quality
and quantity.
They also specialise in various qualities of Paper like Offset, Coated, Woodfree Coated and Uncoated, Ivory Board, All kinds of Kraft paper, Digital Paper, Inject Paper, Tissue paper etc
Strategic Partners
Subject is the agents for Damanganga - Damanganga group has varied interests in the production of Paper Board, Paper Cores and Tubes, Paper Cones, Fibre Drums.
The group has three paper and board plants located in Vapi, South Gujarat, India and Union Territory of DNH. It has four paper conversion plants in Vapi as well.
The latest addition to the paper making business is a state of art Newsprint producing facility at Ambethi, Gujarat, near to other paper producing facilities of the group.
The core business of the group is centered at paper production. The Group has this experience since the last 15 years in India. Previously the promoters had a varied interest in trading, manufacture of textiles and property development in Kenya, East Africa and United Kingdom.
The
promoters have invested over Rs. 500 million in the recent years in the country
and sales turnover exceeds Rs. 850 million. The group exports its various
products to East African Countries, Middle East Countries, and Neighbouring
Countries.
The newsprint facility is one of the largest in the private sector employing state of art technology to control all equipment. The online quality control systems comprise of nuclear and x-ray sensors and scanners supplied by "Honeywell Measurex", USA. The DC drives are supplied by world renowned "Control Techniques", U.K. Engineering of the complete plant has been done by Mr. Alibhai Nathani of "Ruby Macons", Electrical control equipment and electricsubstation has been supplied by "E & M Lamort France".
The company manufactures world class 100% Recycled Newsprint
and also employes the latest technology in water treatment. The company is now
a totally closed water mill. As the company has extensively used electronics
and computer controlled systems thereby eliminating chances of quality
variations. The company's products are highly reliable and the clientele list
of the company comprises of the leading newspaper publications. The group also
offers, apart from Newsprint, excellent quality packaging papers, Boards, and
total paper packaging solutions with wide applications.
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.39.35 |
|
UK Pound |
1 |
Rs.80.53 |
|
Euro |
1 |
Rs.57.56 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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. |
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 |
|