MIRA
INFORM REPORT
|
Report Date : |
27.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
SUBHIKSHA -UNIT OF SUBHIKSHA TRADING SERVICES LIMITED |
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Registered Office : |
146, Old No. 207, Second Floor, R K Mutt Road, Mandaveli, Chennai – 600
028, Tamil Nadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
10.04.1997 |
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Com. Reg. No.: |
037948 |
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CIN No.: [Company
Identification No.] |
U52599TN1997PLC037948 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHES05999A |
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PAN No.: [Permanent
Account No.] |
AACCS8700J |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Subject is engage in Food products retailing, Non Food products
retailing and Pharmaceuticals retailing |
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 4658000 |
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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 : |
The company is a multi-Locational retail chain of stores. It is
promoted by qualified management graduate. The company has been successful in
establishing one of the largest networks of retail stores. Trade relations
are fair. General financial position is satisfactory. 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 : |
146, Old No. 207, Second Floor, R K Mutt Road, Mandaveli, Chennai –
600 028, Tamil Nadu, India |
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Website: |
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Mumbai Office : |
153-B, Matunga ( Dongare Building), 1st Floor, Matungs,
Mumbai – 400 019, Maharashtra, India |
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Tel. No.: |
91-22-65526925 |
DIRECTORS
|
Name : |
Mr. R Subramanian |
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Designation : |
Managing Director |
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Address : |
75-C, II Main Road, Gandhi Nagar, Adyar, Chennai – 600 020, India |
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Date of Birth/Age : |
02.06.1966 |
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Date of Appointment : |
01.04.2000 |
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Name : |
Mrs. Bala Deshpande |
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Designation : |
Nominee Director |
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Address : |
C/o ICICI Venture Funds Management Company Limited, ICICI Towers, 8th
Floor, South towers, Bandra Kurla Complex, Mumbai – 400 051, India |
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Date of Birth/Age : |
15.04.1966 |
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Date of Appointment : |
09.09.2002 |
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Name : |
Mrs. Renuka Ramnath |
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Designation : |
Nominee Director |
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Address : |
C/o ICICI Venture Funds Management Company Limited, ICICI Towers,
Stanrose House, Ground Floor, Appasaheb Marathe Marg, Prabhadevi, Mumbai –
400 025, India |
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Date of Birth/Age : |
14.09.1961 |
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Date of Appointment : |
20.12.2004 |
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Name : |
Mr. Sivkameswariv Narayan |
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Designation : |
Director |
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Address : |
3,I Cross Road, Kasturba Nagar, Adyar – 600 020, Chennai, India |
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Date of Appointment : |
02.03.2000 |
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Name : |
Mr. M Rathinakumar |
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Designation : |
Company Secretary |
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Address : |
146, R K Mutt Road, Mandaveli, Chennai – 600 028, Tamil Nadu, India |
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Date of Birth/Age : |
18.03.1965 |
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Date of Appointment : |
01.12.2004 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
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No. of Shares |
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Mr. R Subramanian |
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100 |
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ICICI Trusteeship Services Limited |
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63000000 |
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Cash and Carry Wholesale Traders Private Limited |
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122999600 |
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Mr. G S Ramaswamy |
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100 |
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Mrs. Mohan Ramaswamy |
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100 |
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Mrs. Srividhya Subramanian |
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100 |
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Western India Trustee and Executor |
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61037038 |
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Total |
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247037038 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engage in Food products retailing, Non Food products retailing
and Pharmaceuticals retailing |
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Products : |
Food products, Non Food products and Pharmaceuticals |
GENERAL
INFORMATION
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No. of Employees : |
2000 |
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Bankers : |
v The Federal Bank
Limited v Axis Bank
Limited |
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Banking Relations
: |
Satisfactory |
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Auditors : |
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Name : |
Deloitte Haskins and Sells |
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Address : |
Second Floor, Temple Tower, 672, Anna Salai, Nandanam, Chennai – 600
035, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000000 |
Equity Shares |
Rs. 10/- each |
Rs. 500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
29203700 |
Equity Shares |
Rs. 10/-
each |
Rs. 292.037 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
292.037 |
247.037 |
200.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
872.711 |
406.591 |
51.937 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1164.748 |
653.628 |
251.937 |
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LOAN FUNDS |
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1] Secured Loans |
800.078 |
205.449 |
167.283 |
|
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2] Unsecured Loans |
0.000 |
3.095 |
4.020 |
|
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TOTAL BORROWING |
800.078 |
208.544 |
171.303 |
|
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DEFERRED TAX LIABILITIES |
16.328 |
15.929 |
15.945 |
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TOTAL |
1981.154 |
878.101 |
439.185 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
287.093 |
155.588 |
149.500 |
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Capital work-in-progress |
500.356 |
0.000 |
0.000 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
572.946 |
344.385 |
280.513 |
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Sundry Debtors |
0.083 |
8.305 |
2.530 |
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Cash & Bank Balances |
650.353 |
378.003 |
12.042 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
226.580 |
54.979 |
40.759 |
|
Total
Current Assets |
1449.962 |
785.672 |
335.844
|
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
|
|
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Current Liabilities |
216.884 |
26.651 |
26.342 |
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Provisions |
39.373 |
36.508 |
19.817 |
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Total
Current Liabilities |
256.257 |
63.159 |
46.159
|
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Net Current Assets |
1193.705 |
722.513 |
289.685
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1981.154 |
878.101 |
439.185 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
3346.866 |
2781.014 |
2164.311 |
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Other Income |
55.570 |
31.030 |
19.126 |
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Total Income |
3402.436 |
2812.044 |
2183.437 |
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Profit/(Loss) Before Tax |
102.770 |
89.176 |
42.152 |
|
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Provision for Taxation |
41.649 |
37.484 |
11.200 |
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Profit/(Loss) After Tax |
61.121 |
51.692 |
30.952 |
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Expenditures : |
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Purchases made for re-sale |
2658.868 |
2179.673 |
- |
|
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Salaries, Wages, Bonus, etc. |
35.208 |
38.966 |
- |
|
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Managerial Remuneration |
6.000 |
0.000 |
- |
|
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Payment to Auditors |
1.410 |
0.582 |
- |
|
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Interest |
46.799 |
25.184 |
21.530 |
|
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Insurance Expenses |
1.594 |
0.788 |
- |
|
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Power & Fuel |
9.291 |
8.350 |
- |
|
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Depreciation & Amortization |
26.301 |
25.245 |
22.558 |
|
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Other Expenditure |
514.195 |
444.080 |
2097.197 |
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Total Expenditure |
3299.666 |
2722.868 |
2141.285 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
1.79 |
1.83 |
1.42 |
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Net Profit Margin (PBT/Sales) |
(%) |
3.07 |
3.20 |
1.94 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
5.91 |
9.47 |
8.68 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.08 |
0.13 |
0.16 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.90 |
0.41 |
0.86 |
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Current Ratio (Current Asset/Current Liability) |
|
5.65 |
12.43 |
7.27 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8
Bankers Charges
Report as per Registry
|
Name of the company |
SUBHIKSHA - UNIT OF SUBHIKSHA TRADING SERVICES LIMITED |
|
Presented By |
SUBHIKSHA - UNIT OF SUBHIKSHA TRADING SERVICES LIMITED and UTI Bank
Limited, T. Nagar, Chennai – 600 017 |
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1) Date and description of instrument creating the change |
03.02.2000 Articles of
agreement for medium term loan against hypothecation of movable machinery
dated 3rd February 2000 |
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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 |
Facility: Term
Loan Specific/ Primary
Security: Hypothecation of
Computers, Furnitures, File server, Wooden Furniture, electrical fittings,
slotted angle iron racks, T.V. sets and other fixed assets installed in all
retail outlets. Acquired out of the sanctioned term loan. Floating Charge: The Existing
Charge On: The whole of the
company’s stock whether raw or in process of manufacture and all articles
manufactured there from which now or hereafter from time to time during this.
Security shall be brought into stored or be in or about the company’s godowns
or premises in company’s outlets or wherever else the same may be ( including
any such goods in course of transit or delivery) and all present and future
book debts, Outstanding money receivable, Claims, Bills, Contracts,
Engagements, Securities, Investments, Rights and assets. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Interest at the
rate of 17%p.a. ( inclusive of tax) Margin: 25% Term loan is to
be repaid as per schedule hereunder:
|
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5) Name and Address and description of the person entitled to the charge. |
UTI Bank Limited 47, Thirumalai
Pillai Road, T Nagar, Chennai – 600 017 |
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This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
U52599TN1997PLC037948 |
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Name of the
company |
SUBHIKSHA - UNIT OF SUBHIKSHA TRADING SERVICES LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
146, Old No. 207, Second Floor, R K Mutt Road, Mandaveli, Chennai –
600 028, Tamil Nadu, India |
|
Type of charge |
Book Debts and
Fixed Assets |
|
Particular of
charge holder |
The Federal Bank
Limited, Mount Road Branch, No. 61, Anna Salai, Chennai – 600 002, Tamil
Nadu, India Email: mdsa@federalbank.co.in |
|
Nature of
description of the instrument creating or modifying the charge |
|
|
Date of
instrument Creating the charge |
29.09.2007 |
|
Amount secured by
the charge |
Rs. 500.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
v
Rate of
Interest Term
Loan–BPLR-1.25% (12.50%) Cash Credit –
BPLR – 1.25% (12.50%) v
Terms of
repayment Term Loan – 20
quarterly installments from April 2008 – June 2008 quarter Cash Credit – On
demand v
Margin Term Loan – 52% (
Overall Margin) Cash Credit – 25%
on stock and advance paid to suppliers v
Extent
operation of the charge Pari passu first
charge on the entire fixed assets of phase 111 and phase 1V project Pari passu first
charge on the entire current assets of the company |
|
Short particulars
of the property charged |
v
Primary
Security: a)
Pari Passu
first charge on the fixed assets of phase III and phase IV project of the
company along with other term lenders
( Including lease deposits) b)
Pari passu
first charge on the entire current assets of the company v
Collateral
Security: a)
Second pari
passu charge on the entire current assets of the company b)
Second pari
passu charge on the entire fixed assets of the company |
|
Name of the company |
SUBHIKSHA - UNIT OF SUBHIKSHA TRADING SERVICES LIMITED |
|
Presented By |
SUBHIKSHA - UNIT OF SUBHIKSHA TRADING SERVICES LIMITED and Axis Bank
Limited, T. Nagar, Chennai – 600 017 |
|
1) Date and description of instrument creating the change |
|
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 109.000
Millions |
|
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 |
For Cash Credit: All present and
Future Book Debts, Out Standing Monies, Receivables, Claims, Bills,
Contracts, Engagements securities, Investments, rights and assets (except pre
effectively otherwise hypothecation/ charge or mortgage to the Bank) shall be
hypothecated to the Bank and its assigns by way of first charge. For both Cash
Credit and Bank Guarantee:
|
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interest
for Cash credit 14.5% calculated on daily extent and operation of the balance
charge. Margin: Bank
Guarantee and Cash Credit 25% The Hypothecation
of goods shall be expenses in good against loss or duly insured against lose
or damage as may be required by the bank The above
agreement shall open as continuing security for all the monies in all liabilities
not with standing to existence of a credit. |
|
5) Name and Address and description of the person entitled to the charge. |
Axis Bank Limited 82, Radhakrishnan
Salai, Chennai – 600 004 |
|
6) Date and brief description of instrument modifying the charge |
24.03.2003
All relates to
one and the same charge |
|
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 credit
facility extended to the company has now been enhanced to Rs. 150.000
Millions in the following manner: Fund Based
Facilities: Cash Credit: Rs.
150.000 Millions Non Fund Based: Inland Letter of
Credit Rs. ( 20.000) Millions Bank Guarantee:
Rs. (20.000) Millions Sub Limit under
fund based limit:
Rate of Interest
and other terms and conditions remain the same. |
Website Details Attached:
History:
Subject is India's largest supermarket, pharmacy and telecom chain. Started in 1997 as a single store entity in South Chennai, it is now present nationally with 800 outlets and spread across more than 60 cities. ICICI Venture Capital has a 24% stake in Subject.
Derived from the Sanskrit word, Subhiksham or "giver of
all things good", Subject was founded by
Mr. R. Subramaniam, an IIT-Chennai & IIM-A alumni. His vision to deliver
consistently better value to Indian consumers, has guided Subject to deliver savings
to all consumers on each and every item that they need in their daily lives,
365 days a year, without any compromise on quality of goods purchased.
Subject now has the pan Indian presence with stores across Delhi, UP, Punjab, Hariyana, Gujarat, Maharashtra, AP, Karnataka and TN. Today, it is a multi-locational, professionally managed and vibrant organization that is poised to change the lives of millions of Indians, faster than ever before!
Making of the largest
retail chain in India:
Recently Rediff.com carried a very interesting interview with first generation entrepreneur R Subramanian, who started Subject around 10 years ago, with its first store opened in Chennai in 1997.
Subramanian who did his B.Tech from IIT and PGDBM (MBA) from IIM, Ahmedabad has many first to his credit like starting asset securitization in early 90s, IPO financing in 94 and debentures trading.
Entering the retail
market ten years ago
There was no great logic behind entering the retail market in 1997. They made a
study of two areas: software and retail. Between software and retail, they
thought they were a bit late for software as Satyam, Infosys, Wipro, TCS, etc
had already established by then. They didn’t want to be a small and late
entrant.
In retail, they would be one of the early entrants, so they would have the
learning curve much to their advantage. They allocated a Rs 5 crore (Rs 50
million) corpus to it and entered the retail business. There was a lot of
thought process behind it. They wanted to attract not the top end customer but
the aam aadmi.
From their research of three months, they found that consumers prefer buying
groceries from closer home. So, they decided to set up 1,000 sq ft shops all
across the city and not a 10,000 sq ft big store at one location in Chennai.
The next question was why would he come to their store abandoning the existing
store? It had to be the price, because ultimately there is no difference
between the branded products like say Boost or Surf or such things. So, they
decided to sell branded products at a lower price.
On starting Subject
They looked at all sorts of names; and finally they chose the Sanskrit word
Subhiksha (prosperity) because it reflects the Indian ethos and it is a word
that can be understood all over India. What they were trying to do was
different from the western model; their model is truly Indian. Their theme was,
why pay more when you can get it for less at Subhiksha?
In March, 1997, they opened their first store in Thiruvanmiyoor in Chennai with an investment of around Rs 4-5 lakh (Rs 400,000-500,000). They opened it with the clear idea that it is part of a larger system. They thought the day they opened, there would be a stampede because the prices were low and they would sell goods of Rs 30-40 lakh (Rs 3-4 million) by the month end. But there was nothing of that sort! They sold goods of only Rs 5-6 lakh (Rs 500,000-600,000) in the first month.
On his expansion
plans
By March 1999, they started expanding rapidly. From 14 stores, they expanded to 50 stores by June 2000. In the next two years, they had 120-130 stores across Tamil Nadu. Another big thing was, in 2000, ICICI Venture invested in their company. Today, they have 145 stores all over Tamil Nadu.
They saw to it that the moment they got into a city, they started as many
stores as possible there. Only that made business sense. Then, till 2004, they
made sure that they consolidated before they expanded, though there was a lot
of pressure on them to expand nationally.
They decided to look at every part of India which is significantly literate and is a significant consumption market. They wanted to be everywhere. They looked at the telecom companies as their role model. They employed capable regional managers and expanded.
Their business is also extremely local. They can’t sit in Chennai and run a
store in Chandigarh. They decided to have very good quality people to run the
region, area, town and the store.
In 2004-05, they decided to have 420 stores in places like Gujarat, Delhi, Mumbai, Andhra and Karnataka by 2006. In 2005, they started recruiting people in various regions. Today, they have 500 plus stores in all the places that they had planned. It will go up to 600-plus by the month end.
They are already India’s largest retail chain store with 500-plus stores. They plan to have 1,000-plus stores by the end of this year.
Risk in retailing and expansion?
They are not mad risk takers. They are not producing movies. They do a lot of research before starting business in an area, and they have back-up plans in place. They work with very good people, and if something goes wrong, they try to take corrective steps.
The big advantage they have is, they are not creating products. So there are no worries about whether it would succeed or not. Consumers are smart and they are all price-conscious and they want to finish the work as fast as they can. They don’t go to a provision store for fun.
On the entry of MNCs and Reliance in the
retail market
Everybody has been asking me, are you worried about Wal-Mart coming to India? Ultimately Wal-Mart is also going to be run by people like them. The point is you need not worry about anybody’s entry. There is a huge potential for growth in India. There is potential for another ten people to come in.
Ultimately the share of the unorganised Kirana will come down and the share of organised sector will go up because of the efficacy in buying and distributing. Also, this is an extremely low margin business. Ultimately, everybody has to sell within the cost. It is not that they are geniuses; they have been in the business for ten years, and they have made enough mistakes and learnt from them.
They don’t think any child will learn to walk without falling down first, however good the parent is.
They made their mistakes when they were small. The bigger you are, the mistakes will cost you more.
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 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. 39.85 |
|
UK Pound |
1 |
Rs. 82.61 |
|
Euro |
1 |
Rs. 59.21 |
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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--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 |
|