MIRA
INFORM REPORT
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Report Date : |
05.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
ENKEI CASTALLOY
LIMITED |
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Registered Office : |
Gate No.1426,
Shikrapuri, Pune-412208, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
19.12.1990 |
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Com. Reg. No.: |
11-59487 |
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CIN No.: [Company
Identification No.] |
U99999MH1990PLC059487 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PNEE01509E |
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PAN No.: [Permanent
Account No.] |
AABCP0252B |
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Legal Form : |
A Public Limited
Liability Company. The Company’s shares are listed on Stock Exchanges. |
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Line of Business : |
Manufacturing
aluminium alloy die casting, by Gravity and Low Pressure Techniques, mainly
catering to automobile industry |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 2167000 |
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Status : |
Good |
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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 fine track. Trade relations are
fair. Financial position is good. Payments are correct and as per
commitments. The company is
doing well. It can be
considered good for any normal business dealings at usual trade terms and
conditions. It can be
regarded as a promising business partner in a medium to long-run. |
LOCATIONS
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Registered Office : |
GateNo.1426,
Shikrapuri, Pune-412208, Maharashtra, India |
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Tel. No.: |
91-2137-677100 |
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Fax No.: |
91-2137-677130 /
72643 |
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E-Mail : |
ecl@enkeicastalloy.co.in / s.rai@atlasauto.com |
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Website : |
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Factory 1 : |
57-58Km Stone,
Delhi, Jaipur, NH-8, Industrial Area, Village Binola, Haryana, India |
DIRECTORS
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Name : |
Mr. S. Rai |
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Designation : |
Managing Director |
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Name : |
Mr. Junichi
Suzuki |
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Designation : |
Director |
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Name : |
Mr. Tetsuro Masui |
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Designation : |
Director |
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Name : |
Mr. Asis Roy |
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Designation : |
Director |
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Name : |
Mr. A. D.
Harolikar |
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Designation : |
Director |
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Name : |
Mr. S. C. Khanna |
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Designation : |
Director |
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Name : |
Mr. Vinay Panjabi |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Rajeev Sikand |
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Designation : |
Group CEO |
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Date of
Birth/Age : |
46 years |
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Qualification
: |
MBA |
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Experience : |
24 years |
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Date of
Appointment : |
03.12.2005 |
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Previous Employment
: |
Motherson Sumi
Systems Limited, Head-International Business |
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Name : |
Mr. K.K. Jha |
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Designation : |
CEO |
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Date of
Birth/Age : |
44 years |
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Qualification
: |
B. Sc.
(Engineering) |
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Experience : |
21 years |
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Date of
Appointment : |
15.06.1994 |
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Previous
Employment : |
Maruti Udyog
Limited, Engineer |
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Name : |
Mr. Naishad J.
Purohit |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
[As on 31.12.2007]
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Indian |
200160 |
1.82 |
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Individuals / Hindu Undivided Family |
3599840 |
32.73 |
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Bodies Corporate |
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Institutions |
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Mutual Funds / Axis Bank |
906602 |
8.24 |
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Foreign Institutional Investors |
513691 |
4.67 |
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Non-Institutions |
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Bodies Corporate |
631392 |
5.74 |
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Individuals |
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Individual shareholders holding nominal
share capital up to Rs. 0.100 Million |
938823 |
8.53 |
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Individual shareholders holding nominal
share capital in excess of Rs. 0.100 Million |
269537 |
2.45 |
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Clearing Members |
13711 |
0.12 |
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Non Resident Indians |
123320 |
1.12 |
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Directors & their Relatives &
Friends |
2924 |
0.03 |
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Foreign Collaborators |
3800000 |
34.55 |
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Total
|
11000000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing
aluminium alloy die casting, by Gravity and Low Pressure Techniques, mainly
catering to automobile industry |
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Products : |
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PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
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Semi-finished Casting made from aluminium alloys |
Nos. |
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83603 |
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Wheels (Traded) |
Nos. |
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0 |
GENERAL
INFORMATION
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Bankers : |
Ø
Bank of
Maharashtra, Industrial Finance Branch, Pune Ø
ING Vysya
Bank Limited, F. C. Road, Pune Ø
Kotak
Mahindra Bank Limited, Pune Ø
State Bank
of India, IFB Branch, Pune Ø
Export
Import Bank Of India, Shankarsheth Road, Pune Ø
Axis Bank
Limited, J. M. Road, Pune Ø
Mizuho
Corporate Bank Limited, Mumbai |
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Facilities : |
SECURED LOANS :
Secured By:
UNSECURED LOANS :
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Engineer &
Mehta Chartered
Accountants |
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Associates/Subsidiaries : |
Ø Enkei
Corporation, Japan Ø EnkeiThai
Company Limited Ø Enkei Thai
Moulding Company Limited Ø Enkei Asian
Trading Company Limited Ø Enkei Logistics
Limited Ø Enkei Audit and
Computer Limited Ø Atlas Automotive
Components Private Limited Ø Pamela Trading
and Finance Company Private Limited Ø Silicon Meadows
Designs Limited Ø Nastic Trading
Private Limited Ø Chemetall Rai
India Limited Ø PT Enkei
Indonesia Ø Enkei Alluminium
Product(China) Company Limited Ø Enkei Moulding(
Kushan) Company Limited Ø Enkei Wheel
Corporation, Japan |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11000000 |
Equity Shares |
Rs. 5/- each |
Rs.55.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11000000 |
Equity Shares |
Rs. 5/- each |
Rs.55.000 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
55.000 |
50.000 |
50.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
486.877 |
181.860 |
114.293 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
541.877 |
231.860 |
164.293 |
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LOAN FUNDS |
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1] Secured Loans |
852.584 |
473.851 |
247.351 |
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2] Unsecured Loans |
415.949 |
272.509 |
172.931 |
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TOTAL BORROWING |
1268.533 |
746.360 |
420.282 |
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DEFERRED TAX LIABILITIES |
27.061 |
31.217 |
25.494 |
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TOTAL |
1837.471 |
1009.437 |
610.069 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1190.841 |
712.960 |
427.347 |
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Capital work-in-progress |
469.341 |
110.458 |
95.183 |
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INVESTMENT |
0.070 |
0.070 |
0.070 |
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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 |
274.510 |
116.930 |
62.043 |
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Sundry Debtors |
462.995 |
269.820 |
168.783 |
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Cash & Bank Balances |
13.326 |
7.803 |
7.308 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
152.432 |
96.952 |
43.182 |
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Total Current Assets |
903.263 |
491.505 |
281.316 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
640.526 |
236.203 |
160.877 |
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Provisions |
95.364 |
69.589 |
33.568 |
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Total Current Liabilities |
735.890 |
305.792 |
194.445 |
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Net Current Assets |
167.373 |
185.713 |
86.871 |
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MISCELLANEOUS EXPENSES |
9.846 |
0.236 |
0.598 |
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TOTAL |
1837.471 |
1009.437 |
610.069 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
2296.881 |
1223.925 |
658.078 |
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Other Income |
16.312 |
10.434 |
0.000 |
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Total Income |
2313.193 |
1234.359 |
658.078 |
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Profit/(Loss) Before Tax |
139.755 |
116.435 |
87.545 |
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Provision for Taxation |
21.695 |
41.030 |
28.516 |
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Profit/(Loss) After Tax |
118.060 |
75.405 |
59.029 |
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Earnings in Foreign Currency : |
225.492 |
54.450 |
50.952 |
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Total Imports |
568.333 |
102.279 |
98.337 |
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Expenditures : |
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Materials and Finished Goods |
1073.305 |
494.181 |
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Personal Expenses |
167.804 |
93.715 |
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Manufacturing Expenses |
612.072 |
340.949 |
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Administrative Expenses |
121.505 |
71.317 |
570.533 |
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Financial Expenses |
77.273 |
49.975 |
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Royalty |
13.262 |
9.369 |
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Depreciation & Amortization |
105.608 |
57.088 |
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Prior Year Adjustment |
2.609 |
1.330 |
|
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Total Expenditure |
2173.438 |
1117.924 |
570.533 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Sales Turnover |
760.800
|
953.200
|
762.700
|
|
Other Income |
3.700
|
11.200
|
9.200
|
|
Total Income |
764.500
|
964.400
|
771.900
|
|
Total Expenditure |
678.600
|
865.700
|
678.500
|
|
Operating Profit |
85.900
|
98.700
|
93.400
|
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Interest |
31.700
|
30.300
|
36.400
|
|
Gross Profit |
54.200
|
68.400
|
57.000
|
|
Depreciation |
39.800
|
44.000
|
46.700
|
|
Tax |
2.700
|
-15.600
|
2.200
|
|
Reported PAT |
11.700
|
40.000
|
8.100
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total
Income |
(%) |
5.10
|
6.10 |
8.96 |
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
6.08
|
9.51 |
13.30 |
|
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Return on Total Assets (PBT/Total Assets} |
(%) |
6.67
|
9.66 |
12.35 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.50 |
0.53 |
|
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|
Debt Equity Ratio (Total Liability/Networth) |
|
3.69
|
4.53 |
3.74 |
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|
Current Ratio (Current Asset/Current Liability) |
|
1.22
|
1.60 |
1.44 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets
- Land
- Building
- Plant and Machinery
- Electrical Installation
- Furniture and Fixtures
- Computers/ Softwares
- Office Equipments
- Quality Control Equipments
- Motor Vehicles
- Dies
- Patterns
CONTINGENT LIABILITIES
|
Particulars |
As on 31.03.2007 [ Rs. In
Millions] |
|
Estimated amount of contracts remaining to be executed on capital
accounts |
28.247 |
|
Guarantees issued by Bank |
20.758 |
|
L / C issued by the bank for the import of Machinery & Goods |
101.082 |
|
Total |
150.087 |
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
(a) Industry Structure and Development:
The economy
boom in both manufacturing and service industry continued in the year under
review. The robust growth of Indian economy has further fueled the automotive
industry. This growth is recorded in adverse atmosphere of high fuel p ice and
increased interest rate. The vehicle prices have also gone-up except in case of
small segment cars, which had an advantage of reduced excise duty of 16% in
place of 24%. The projected CAGR for 2005-2014 is 17% (Source: ACMA).
The cumulative
growth of the Passenger Vehicles segment during April 2006 - March 2007 was
20.70 percent. Passenger Cars grew by 22.01 percent, Utility Vehicles by 13.21
percent and Multi Purpose Vehicles by 25.20 Percent in FY 2006-07.The
Commercial Vehicles segment grew by 33.28 percent. Growth of Medium & Heavy
Commercial Vehicles was 32.84 percent and Light Commercial Vehicles recorded a
growth of 33.93 percent.
Three Wheelers
sales grew by 12.22 percent with sales of Goods Carriers increasing by 13.52
percent and Passenger Carriers by 11.33 percent during April 2006- March 2007
compared to the corresponding period last year.
The Two Wheeler
market grew by 11.42 percent during April 2006- March 2007 over the same period
fast year. Motorcycles grew by 12.79 percent, Scooters grew by 3.48 percent and
Mopeds registered a growth of 6.95 percent. The Indian auto ancillary has the
added advantage of low cost of production and better quality compared to other
emerging markets like China.
An
ALMA-McKinsey study indicates a growing outsourcing opportunity for the Indian
auto-components sector Driven by the strong technological capability, Indian
auto-component Companies could gain a 10-12% share of the addressable
skill-intensive parts market (machined gears and machined exhaust manifolds)
and 5-7% share of the potential labour - intensive parts market where it
competes equally with other low-cost countries. India is likely to attain 3-4%
share of the US $ 700 billion potential market by 2015, translating into a US $
20-25 billion opportunity by 2015, a 30% CAGR over the next 10 years from US$
1.4 billion in 2005 (McKinsey estimates).
The Company, which mainly caters to upper segment of cars and two wheelers, had
an another year of impressive growth. The Company is manufacturing aluminum
alloy die-castings viz. Cylinder heads, intake manifolds and wheels for two and
four-wheelers.
The Company
enjoys technical support from Enkei Corporation, Japan, who is the world's
largest OEM supplier.
(b) Review of Operations:
The Company
operates into only one business segment viz. manufacturing of aluminum alloy
castings mainly used in auto industry.
The Company has
recorded yet another year of impressive performance with highest ever top and bottom
lines. During the year under review, Sales turnover amounted to an all time
high of Rs. 2692.30 Million as against 1439.22 million last year, a jump of
87%. Pre tax Profit was also higher at Rs. 139.76 million as against 116.44
million in previous year. Cash profit after tax of Rs. 223.67 million shows a
very healthy growth of about 69% on year to year basis. Earning Per Share (EPS)
for the year was Rs.11.06, compared to Rs. 7.54 in the earlier year.
The Company
recorded an export turnover of Rs. 365.04.million for the year under review
compared to an export turnover of Rs. 141.91 million in the last year. The
Company exported to U.S.A. / Europe. Efforts are being made to penetrate in
European markets.
(c) Opportunities / Outlook for the
Company:
India is being
turned into a hub for small car manufacturing. All the major car manufacturers
has announced capacity expansion and are continuously introducing new models.
Many new international giants are in process of setting up their manufacturing
facilities in India. Government's focus on developing roads and other
infrastructure facilities provide ample growth opportunities. Robust growth of
economy backed by strong performance of all key industrial sector shall result
in increased purchasing power of masses. This will also mitigate the adverse
effect of price increase. In recent years they have seen increasing number of
global players entering Indian market by way of Joint ventures, collaborations
or wholly owned subsidiaries. Sudden interest of major global players has made
Indian auto industry very competitive as India provides twin benefit of ready
market and low cost manufacturing base for them.
Car stock per
1000 population is expected to increase at a CAGR of 9.14% during the
forecasted period from FY 2007 to FY201 0. New passenger car registration is
expected to grow at a CAGR of 11.41% during the forecasted period.
Keeping all
these factors into consideration, the management of the Company expects a very
good volume growth in passenger cars segments in coming years. This will result
in increased demand for the Company's castings.
During the year
under review, the Company completed the expansion of intake mani fold and
cylinder heads. The Company do not foresee any difficulty in marketing its increased
capacity.
The cheap
imports from China of aluminium wheel is cause of concern for management.
Though the quality of the wheel is well accepted by the customers, the cheap
import from China is adversely effecting the demand and profit margin. However,
as the cheap imports will not sustain for long time, management is of the view
that this is a temporary phenomenon.
AS PER WEBSITE DETAILS:
PROFILE
Subject is a joint venture
between Rai and Associates of India and Enkei Corporation, Japan, a US$ 2 Bn
Group, which is the second largest manufacturer of alloy wheels in the world
with a sale of more than a million wheels per month from its plants across the
globe.
With technical expertise
from Enkei Japan, it has developed leadership in establishing one of the most
advanced manufacturing systems in India for aluminum die cast products. Enkei
Castalloy Ltd. currently leads the Indian market in manufacturing cylinder
heads for two wheelers and alloy wheels for 2 wheelers as well as 4 wheelers.
Enkei has the distinction of being a single source supplier of many critical
engine parts to some of India’s largest OEMs.
Establishing strong
mechanisms to control quality, cost and delivery, Enkei Castalloy Ltd. not only
supplies its products to India but also is foraying into international markets.
Enkei currently supplies its products to various Tier I / Tier II suppliers of
global OEMs in Europe and USA. Enkei’s customers include Maruti Udyog Limited,
Honda Siel Cars Limited, Tata Motors, Hyundai Motors, Mahindra & Mahindra,
Bajaj Auto Limited, Hero Honda Motor Industries, Honda Scooter and Motorcycle
Company, Suzuki Motors India Limited, Yamaha India and many more. International
customers include Trelleborg, Behr Group, ZF Group, and GWK Group.
Aggressively tapping on the
opportunities in the Indian and International markets, Enkei Castalloy Ltd. is
growing rapidly at almost 100% each year for the last 3 years. In continuation
of its growth pursuit, Enkei is aggressively targeting international customers
and has a vision to achieve sales of Rs. 10,000 Mn by 2009-10. The main plant
is located at Shikrapur, Pune with 1500 employees while the second plant has
recently come up at Gurgaon in North. Plans for the third plant are under
finalization which is expected to come up at Pantnagar, Uttaranchal.
About Enkei
Worldwide
Enkei corporation was
founded on 5th October 1950, in Hamamatsu, Japan as a manufacturer of die cast
aluminum engine parts for motorcycles. Over a period of time, Enkei’s line of
business diversified continuing with their core strength of manufacturing
aluminum wheels for automobiles, motorcycles and other products using aluminum
casting and forging technology.
Enkei’s business in the
aluminum wheel industry ranges from very sophisticated racing wheels for
Formula 1 Rally and others to the OEM market supplying to all the large auto
manufacturers in Japan and USA. Enkei group is the world leader in this field
and has the distinction of supplying magnesium alloy wheels to the prestigious
McLaren Mercedes Formula 1 team.
Enkei currently sells more
than a million wheels a month from its plants across the globe and is the
second largest manufacturer of alloy wheels in the world. It has plants located
in Japan, USA, China, Thailand, Malaysia, Indonesia, Philippines and India.
PRODUCTS
Ø
Cylinder Heads for Passenger Cars
Ø
Cylinder Heads for four stroke 2/3 wheelers.
Ø
Intake Manifolds.
Ø
Engine Crank cases
Ø
Support Brackets.
Ø
Steering Housings.
Ø Alloy Wheels.
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. 39.97 |
|
UK Pound |
1 |
Rs. 79.78 |
|
Euro |
1 |
Rs. 62.60 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
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 |
|