MIRA
INFORM REPORT
|
Report Date : |
07.04.2008 |
IDENTIFICATION
DETAILS
|
Name : |
GHATGE PATIL INDUSTRIES LIMITED |
|
|
|
|
Registered Office : |
Uchangaon, Kolhapur,416005, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
02.07.1960 |
|
|
|
|
Com. Reg. No.: |
011738 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U31103PN1960PLC011738 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
KLPG00564E |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACG6595R |
|
|
|
|
Legal Form : |
Closely held public limited liability company. |
|
|
|
|
Line of Business : |
The Company is engaged in the manufacture of Grey
Iron Castings, S.G. Iron Castings, Mechanical Industrial Clutches and Power
Take Offs, Marine Gear Boxes, Electromagnetic Clutches and Breakes,
Automotive Power Take Offs, Fluid Couplings, Pneumatic Clutches & Breaks,
BEML Products and Industrial Valves. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 1312988 |
|
|
|
|
Status : |
Very Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed Company and a part of Ghatge
Patil Group. Trade relations arte fair. General financial position is
satisfactory. Fundamentals are strong a healthy. Payments are reported as
usually correct and as per commitments. The Company can be considered good for normal business dealings of
usual trade terms and conditions. It can be regarded as a promising business partner in a medium to
long-run. |
LOCATIONS
|
Registered Office / Factory : |
Uchangaon, Kolhapur,416005, Maharashtra, India |
|
Tel. No.: |
91-231-2608000 |
|
Fax No.: |
91-231-2608080 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
93384 Sq. Mtr. |
DIRECTORS
|
Name : |
Mr. Jay Kumar Bharamgonda Patil |
|
Designation : |
Chairman and Managing Director |
|
Address : |
Chandrika, 9- Surve Colony, New Sahupuri, 416 003, Kolhapur, India. |
|
Date of Birth/Age : |
17.08.1923 |
|
Date of Appointment : |
02.07.1960 |
|
|
|
|
Name : |
Mr. Kiran Jay Kumar Patil |
|
Designation : |
Joint Managing Director |
|
Address : |
36, Bharat Co-op. Housing Society, Rajaram Puri, 9th Lane,
416 008, Kolhapur, India. |
|
Date of Birth/Age : |
20/05/1953 |
|
Date of Appointment : |
15.09.1990 |
|
|
|
|
Name : |
Mr. Prabhakar Dattatraya Gune |
|
Designation : |
Director |
|
Address : |
Karishma, 138, National Co-op. Hsg Society, Baner Road, Aundh, 411
007, Pune, India. |
|
Date of Birth/Age : |
20/09/1926 |
|
Date of Appointment : |
31.03.1973 |
|
|
|
|
Name : |
Mr. Abhinandan Dharma Patravali |
|
Designation : |
Director |
|
Address : |
121-B, Ganga Jamuna, 76, Main Avenue, Santacruz (West), Mumbai – 400
054, India. |
|
Date of Birth/Age : |
22/03/1927 |
|
Date of Appointment : |
29.06.1983 |
|
|
|
|
Name : |
Mr. Jayant Balakrishna Diwale |
|
Designation : |
Director |
|
Address : |
Flat No. 602, Plot No. 26, Kamal Palace, 6th Floor, Central
Bazar Road, Ramdas Peth, 440 010, Nagpur, India. |
|
Date of Birth/Age : |
01/04/1942 |
|
Date of Appointment : |
06.09.2003 |
KEY EXECUTIVES
|
Name : |
Dr. Sanjay Rangrao Chougle |
|
Designation : |
Nominee Director of ICICI Bank Limited |
|
Address : |
9, DSK Trilok, Chitale Road, Behind Portugese Church, Dadar (West).
400 028, Mumbai, India. |
|
Date of Birth/Age : |
13/05/1963 |
|
Date of Appointment : |
25.06.2000 |
|
Date of Ceasing : |
26.03.2006 |
|
|
|
|
Name : |
Mr. Ashok Vishwas Rao Chowgule |
|
Designation : |
Additional Director |
|
Address : |
Baina, Vasco-da-Gama, Goa – 403 802 |
|
Date of Birth/Age : |
25/01/1948 |
|
Date of Appointment : |
06.09.2003 |
|
|
|
|
Name : |
Mr. Luciano Franco Gilardo |
|
Designation : |
Additional Director |
|
Address : |
A-1, Orchid’s Apartments, North Main Road, Lane E, Koregaon Park,
4110001, Pune, India. |
|
Date of Birth/Age : |
14/06/1943 |
|
Date of Appointment : |
24.12.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As On 30.09.2007
|
Names of Shareholders |
No. of Shares |
|
Smt. Shobha Ajit Kirloskar |
99652 |
|
Mr. Vishwanath Madhavrao Sahasrabudhe |
33000 |
|
Mrs. Mrinalini S. Kirloskar |
29609 |
|
Mr. P Rajesh |
28043 |
|
Mr. P B Prakash |
28043 |
|
Smt. Prabha Arun Bhagwat |
32609 |
|
Mr. Prabhakar Dattatraya Gune |
57783 |
|
Mrs. Rohini Ajit Joshi |
32609 |
|
Mr. Sharad Narayan Gurjar |
109948 |
|
M/s. Sujlam Investments and Trading Private Limited |
46304 |
|
Mrs. Suman Chandrakant Kirloskar |
46826 |
|
Mrs. Sujaya Prasanna Kumar |
68087 |
|
Smt. Sudhatai Narayan Joshi |
45000 |
|
Mr. Uday Bapusaheb Patil |
32609 |
|
Mr. Jay Kumar Bharamgouda Patil |
523957 |
|
Mrs. Vijaya Jay Kumar Patil |
907043 |
|
Mr. Kiran Jay Kumar Patil |
66788621 |
|
Mr. Jay Kumar Bharamgouda Patil |
3108814 |
|
Mr. Kiran Jay Kumar Patil |
125065 |
|
Mr. Jay Kumar Bharamgouda Patil |
107609 |
|
Mr. Purshottam Amit Ghatge |
19696 |
Equity Share breakup (Percentage of Total Equity)
As on 31.03.2007
|
Sr. No. |
Category |
Percentage |
|
1. |
Bodies Corporate (not mentioned above) |
0.37 |
|
2. |
Directors or relatives of directors |
93.57 |
|
3. |
Other top fifty (50) shareholders (other
than listed above) |
5.96 |
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged in the manufacture of Grey
Iron Castings, S.G. Iron Castings, Mechanical Industrial Clutches and Power
Take Offs, Marine Gear Boxes, Electromagnetic Clutches and Breakes,
Automotive Power Take Offs, Fluid Couplings, Pneumatic Clutches & Breaks,
BEML Products and Industrial Valves. |
|||
|
|
|
|||
|
Products : |
|
Item Code |
Product Description |
|
|
|
|
8708 8483 8485 |
Grey Iron and S G Iron Castings Industrial / Pneumatic Clutches / Power Take Offs, Marine Gear Boxes. Fluid Couplings. |
|
GENERAL
INFORMATION
|
Customers : |
v BEML v C.E.P. IND,
Italy v Eicher Tractors v Focrem, Italy v HMT Limited v Ashok Leyland v Caterpillar v Cummins India
Limited v Force Motors v Greaves Limited v Indofarm
Tractors v John Deere
Equipment Private Limited v International
Tractors v Knorr Bremse,
Hungary v Tata v Preet Tractors v Standard v Kiloskar Oil
Engines Limited v Montanari, Italy v Trans Fluid,
Italy v PNE Technic,
Denmark v Swaraj Tractor
Division v TMA, USA v Volvo Truck
Corporation v Uzel, Turkey v Yanmar, Japan |
|
|
|
|
No. of Employees : |
1250 Employees |
|
|
|
|
Bankers : |
v Union Bank of India, Kolhapur v Bank of Maharashtra, Kolhapur v Export Import Bank of India, Centre One Building, Floor 21, World Trade Centre, Cuffe Parade, 400005, Mumbai, Mahashtra, India. |
|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
R. B. Bhagwat and Company, Chartered Accountants |
|
Address : |
101, Kalpatru Plaza, 1086-E, Rajaram Road, 416001, Kolhapur,
Maharashtra, India. |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15,000,000 |
Equity Shares |
Rs. 10/- Each |
Rs. 150.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12,518,479 |
Equity Shares |
Rs. 10/- Each |
Rs. 125.184
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
125.185 |
125.185 |
125.185 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
203.062 |
127.748 |
74.267 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
328.247 |
252.933 |
199.452 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
677.130 |
489.184 |
424.667 |
|
|
2] Unsecured Loans |
122.489 |
137.381 |
74.682 |
|
|
TOTAL BORROWING |
799.619 |
626.564 |
499.349 |
|
|
DEFERRED TAX LIABILITIES |
0.684 |
2.734 |
12.628 |
|
|
|
|
|
|
|
|
TOTAL |
1128.550 |
882.232 |
711.429 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
473.048 |
327.184 |
289.006 |
|
|
Capital work-in-progress |
43.823 |
20.702 |
12.028 |
|
|
|
|
|
|
|
|
INVESTMENT |
2.598 |
2.598 |
4.675 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
297.166
|
201.237 |
201.222 |
|
|
Sundry Debtors |
595.077
|
437.306 |
322.166 |
|
|
Cash & Bank Balances |
48.565
|
32.099 |
46.643 |
|
|
Other Current Assets |
26.210
|
20.407 |
11.320 |
|
|
Loans & Advances |
281.876
|
204.450 |
133.783 |
|
Total
Current Assets |
1248.894
|
895.499 |
715.134 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
506.349
|
235.911 |
226.826 |
|
|
Provisions |
133.464
|
127.839 |
82.588 |
|
Total
Current Liabilities |
639.813
|
363.750 |
309.414 |
|
|
Net Current Assets |
609.081
|
531.749 |
405.720 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1128.550 |
882.232 |
711.429 |
|
7
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
2216.124 |
1774.688 |
1784.102 |
|
|
Other Income |
84.294 |
46.322 |
38.499 |
|
|
Total Income |
2300.418 |
1821.010 |
1822.601 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
132.102 |
105.938 |
134.892 |
|
|
Provision for Taxation |
48.605 |
5.797 |
50.416 |
|
|
Profit/(Loss) After Tax |
83.497 |
100.141 |
84.476 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
763.106 |
543.751 |
0.000 |
|
Total Earnings |
763.106 |
543.751 |
0.000 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Miscellaneous Expenses w/o |
0.000 |
0.000 |
21.573 |
|
|
Excise Duty Paid |
0.000 |
0.000 |
210.905 |
|
|
Payment to Employees |
0.000 |
0.000 |
134.773 |
|
|
Raw Material Consumed |
868.878 |
687.214 |
744.566 |
|
|
Consumption of stores and spares parts |
348.943 |
256.289 |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
210.406 |
151.267 |
0.000 |
|
|
Managerial Remuneration |
0.914 |
0.652 |
0.000 |
|
|
Payment to Auditors |
0.300 |
0.230 |
0.000 |
|
|
Interest |
51.504 |
52.615 |
46.061 |
|
|
Insurance Expenses |
6.351 |
4.603 |
0.000 |
|
|
Power & Fuel |
140.028 |
93.984 |
0.000 |
|
|
Depreciation & Amortization |
47.059 |
40.249 |
36.818 |
|
|
Other Expenditure |
511.538 |
430.211 |
538.642 |
|
|
Increase/(Decrease) in Finished Goods |
(17.606) |
(2.245) |
(45.629) |
|
Total Expenditure |
2168.315 |
1715.071 |
1687.705 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total
Income |
(%) |
3.63
|
5.50 |
4.63 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.96
|
5.97 |
7.56 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.74
|
5.82 |
7.40 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.40
|
0.42 |
0.68 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.95
|
1.44 |
1.55 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.95
|
2.46 |
2.31 |
LOCAL AGENCY
FURTHER INFORMATION
|
This form is for |
Creation of Charge |
|
Corporation identity number (CIN) or foreign company registrations number of the company |
U31103PN1960PLC011738 |
|
Name of the company |
GHATGE PATIL INDUSTRIES LIMITED |
|
Address |
Uchagaondist Kolhapur, 416005, Maharashtra, India |
|
Type of Charges |
Movable Property (not being pledge) |
|
Whether consortium finance is involved |
No |
|
Whether joint charge involved |
No |
|
Number of charge holder(s) |
1 |
|
Particular of the charge holder |
Name : Bank of Maharashtra Address : 1408-C, Laxmipuri City :Kolhapur State :Maharashtra ISO Country Code : IN Pin Code : 416001 e-mail ID : bom18@mahabank.co.in |
|
Nature or description of the instrument creating or modifying the charge |
Hypothecation of Vehicle |
|
Date of the instrument creating charge |
22/05/2007 |
|
Whether charge created or modified outside India |
No |
|
Amount Secure by the charge |
Rs. 450.000 millions |
|
Brief particulars of the principal terms and conditions and extent and operation of the charge |
(a) Rate of Interest 10.75% per annum (b) Terms of repayment 36 Monthly equal instalments of Rs. 15,000/- (c) Margin (d0 Extent and operation of the charge First charge on Maruti Swift LDI Car |
|
Short particulars of the Property charged |
Maruti Swift LDI Car |
|
Whether any of the property or interest therein under reference is not registered in the name of the company |
No |
Form 8
|
Name of the company |
GHATGE PATIL INDUSTRIES LIMITED |
|
Presented By |
GHATGE PATIL INDUSTRIES LIMITED |
|
1) Date and description of instrument creating the change |
Vehicle Loan cum Hypothecation Agreement executed on 29.07.2005 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 0.930 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 |
Toyota Innova V 2.5 Car (Date of association is 29.07.2005) |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
The above Car is purchased under Term Loan –repayable in 36 equal monthly installments, with interest. |
|
5) Name and Address and description of the person entitled to the charge. |
ICICI Bank Limited, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051. |
Form 8
|
Name of the company |
GHATGE PATIL INDUSTRIES LIMITED |
|
Presented By |
GHATGE PATIL INDUSTRIES LIMITED |
|
1) Date and description of instrument creating the change |
Joint Deed of Hypothecation and Working Capital Consortium Agreement executed on 29.03.1997. |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 169.200 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 |
The Whole of the Current Assets of the Company which includes stock of Raw Materials, Stores and Spares, Finished Goods, Stock in Process, Bills receivables, Book Debts and all other movables, both present and future (herein and here after referred to as “Working Capital Facilities”) short particulars whereof are given in the Working Capital Consortium Agreement. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
In Consideration of Union Bank of India Consortium having agreed to lend and advance to the Company the above agreement and declaration by the Company as follows : v Cash Credit / WCDL / FCDL / WCDL (SOD, BD, FCL) v Bills Purchased / Discount Limit v Import/Inland Letter of Credit/ Inland Revolving Letter of Credit Limit Commission. v Guarantee Limit Commission Performance Guarantee As per sanction Advice No. STN/ADV/331 dated 16.11.2005 of Union Bank of India and sanction advice No. A002/ADV/GPI/2005 dated 30.11.2005 at Bank of Maharashtra. Plus Service Charges as are applicable to the said facilities from time to time. |
|
5) Name and Address and description of the person entitled to the charge. |
Union Bank of India Consortium Consisting of Union Bank of India, Station Road Branch, Kolhapur and Bank of Maharashtra, Laxmipuri Branch, Kolhapur |
|
6) Date and brief description of instrument modifying the charge |
Joint Deed of Hypothecation and Working Capital Consortium Agreement on Single window concept executed on 27.01.2006 |
|
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. |
Revision in various credit limits: Earlier executed on 10.08.2001 Rs. 194.700 millions Revised executed on 27.01.2006 Rs. 270.000 millions Additional Charge Rs. 75.300 millions |
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 :
The 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.
The 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. 39.95 |
|
UK Pound |
1 |
Rs. 78.91 |
|
Euro |
1 |
Rs. 63.24 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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, they have no basis upon which to
recommend credit dealings |
No Rating |
|