MIRA
INFORM REPORT
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Report Date : |
23.04.2008 |
IDENTIFICATION
DETAILS
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Name : |
AUTOMOTIVE COACHES AND COMPONENTS LIMITED |
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Registered Office : |
Khivraj Complex- II, 2nd Floor, 477 – 482, Anna Salai,
Chennai – 600035, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
27.08.1980 |
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Com. Reg. No.: |
008389 |
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CIN No.: [Company
Identification No.] |
U34100TN1980PLC008389 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEA00274B |
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PAN No.: [Permanent
Account No.] |
AAACA3150E |
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Legal Form : |
A Closely held Public Limited Company |
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Line of Business : |
Manufacture of Tipper Bodies, Bodies for Buses and special vehicles, semi trailers, running gears, trailer accessories, mobile container lifters, fifth wheel hoists, engine power packs and front end structures. |
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 233204 |
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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 : |
Subject is a well established and reputed Company having Satisfactory
track. Available information indicates high financial responsibility of the company.
Trade relations are fair. Financial Position is good. 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 : |
Khivraj Complex- II, 2nd Floor, 477 – 482, Anna Salai,
Chennai – 600035, Tamilnadu, India. |
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Tel. No.: |
91-44-24336819 |
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Fax No: |
91-44-24353226 |
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E-Mail : |
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Factory : |
Plot No. C1 and C6, Sipcot Industrial Complex, Gummidipoondi, Chennai
– 601 201, Tamilnadu, India. |
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Factory : |
Abbattur Industries Estate, Chennai – 600 058,Tamil Nadu, India |
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Factory : |
Mettu Palayam, Pondicherry – 605 009, Tamil Nadu, India |
DIRECTORS
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Name : |
Mr. M S Ram |
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Designation : |
Chairman |
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Address : |
21/6, 4th Main Road, Gandhi Nagar, Adyar, Chennai – 600
020, Tamilnadu, India. |
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Date of Birth/Age : |
10.02.1920 |
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Date of Appointment : |
08.06.1981 |
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Name : |
Mr. Jehanbux Nariman Amrolia |
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Designation : |
Director |
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Address : |
No.6, I Avenue, Boat Club Road, Chennai – 600 028, Tamilnadu, India. |
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Date of Birth/Age : |
07.03.1948 |
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Date of Appointment : |
19.06.1998 |
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Name : |
Mr. N Bagavethy |
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Designation : |
Director |
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Address : |
25/3, Ranganathan Street, Ganesh Nagar Gulndy, Chennai -600 032,
Tamilnadu, India. |
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Date of Birth/Age : |
05.01.1951 |
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Date of Appointment : |
12.10.2001 |
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Date of Ceasing : |
24.12.2004 |
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Name : |
Mr. B Elangovan |
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Designation : |
Director |
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Address : |
E-9, TNHB, 208, HIG Flats, 112, Anna Main Road, K K Nagar, Chennai –
600 078, Tamilnadu, India. |
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Date of Birth/Age : |
24.04.1964 |
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Date of Appointment : |
24.12.2004 |
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Name : |
Mr. V Mahadevan |
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Designation : |
Director |
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Address : |
Site 197/27, Door No. 11, Sriram Nagar, Bharathiar University Post,
Vadavalli – 641 046, Coimbatore |
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Date of Birth/Age : |
19.06.1933 |
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Date of Appointment : |
12.10.2001 |
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Name : |
Mr. S Nagarajan |
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Designation : |
Director |
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Address : |
15, Seethamma Road, Alwarpet, Chennai – 600 018, Tamilnadu, India. |
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Date of Birth/Age : |
30.07.1944 |
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Date of Appointment : |
12.10.2001 |
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Name : |
Mr. T S Surendra Nath |
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Designation : |
Director |
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Address : |
Anand Flats, Ground Floor, D Phase II, 50, Bajanal Koli Street,
Choolaimedu, Chennai – 600 094, Tamilnadu, India. |
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Date of Birth/Age : |
01.12.1951 |
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Date of Appointment : |
29.06.2002 |
KEY EXECUTIVES
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Name : |
Mr. Jehanbux Nariman Amrolia |
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Designation : |
Manager |
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Address : |
No.6, I Avenue, Boat Club Road, Chennai – 600 028, Tamilnadu, India. |
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Date of Birth/Age : |
07.03.1948 |
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Date of Appointment : |
19.06.2004 |
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Name : |
Mr. S N Balasubramaniam |
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Designation : |
Secretary |
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Address : |
Plot No. 29/31, Akshaya Colony, Mograppair, Anna Nagar, Western
Extension, Chennai – 600 040, Tamilnadu, India. |
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Date of Birth/Age : |
17.10.1952 |
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Date of Appointment : |
10.07.1989 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 29.09.2007
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Names of Shareholders |
No. of Shares |
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Mr. C Radha Krishnan |
1 |
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Mr. S N Balasubramaniam |
1 |
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Mr. C Shanmukham |
1 |
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Mr. K R Viswanathan |
1 |
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Mr. J Jawahar |
1 |
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Mr. G Davidly Moses |
1 |
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Mr R Chandrasekar |
1 |
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Mr. T Arulmozhi |
1 |
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Mr S Hari |
1 |
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Mrs. Latha Ramabadran |
1 |
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M/s Tamilnadu Industrial and Development Corporation Limited |
469990 |
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Mr. J Joseph |
1 |
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M/s Ashok Leyland Limited |
1410664 |
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Ashley Investments Limited |
1776360 |
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M/s Ashley Holdings Limited |
1926667 |
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M/s Aasia Management and Consultancy Limited |
216000 |
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Mr R Seshasayee |
10 |
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Mr T Ananthanarayanan |
50 |
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Mr T M Jawaharlal |
10 |
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Mr S N Balasubramaniam |
10 |
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Mr K N Uma Pathy |
10 |
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Mr K Natarahjan |
49 |
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Mr K Sridharan |
9 |
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Mr N G Ramanathan |
40 |
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Mr T S Ramesh |
40 |
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Mr S V Ramani |
40 |
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Mr V Shankar |
40 |
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Total |
5800000 |
Equity Share breakup (Percentage of Total Equity)
As on 31.03.2007
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Sr. No. |
Category |
Percentage |
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1 |
Government Companies |
8.00 |
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2 |
Bodies Corporate (not mentioned above) |
92.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacture of Tipper Bodies, Bodies for Buses and special vehicles, semi trailers, running gears, trailer accessories, mobile container lifters, fifth wheel hoists, engine power packs and front end structures. |
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Products : |
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PRODUCTION STATUS
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Particulars |
Installed
Capacity |
Actual
Production |
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Tipper Bodies (Nos.) |
2,500 |
1,859 |
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Bodies for Buses and Special Vehicles |
300 |
129 |
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Semi Trallers |
Not Available |
80 |
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Running Gears |
-- |
215 |
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Trailer Accessories |
-- |
2,545 |
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Mobile Container Lifter |
-- |
1 |
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Fifth Wheel Hoist |
-- |
1 |
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Front End Structures MT |
7,000 |
867 |
GENERAL
INFORMATION
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No. of Employees : |
About 1000 |
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Bankers : |
v State Bank of India, Commercial Branch, 232, NSC Bose Road, Chennai – 600 001, Tamil Nadu, India v ANZ Grindlays Bank PLC Rajaji Salai, Chennai – 600 001, Tamil Nadu, India |
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Facilities : |
Over all limit Rs. 60.00 millions |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M S Krishnaswami and Rajan, Chartered Accountants |
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Address : |
10, Sambasivam Street, Chennai – 600017, Tamilnadu, India. |
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Tel. No.: |
91-44-828 2961 |
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Memberships : |
Confederation of Indian Industry |
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Associates: |
v Ashok Leyland Limited v Ennore Foundries Limited v Lanka Ashok Leyland Limited v Ashley Holdings Limited v Ashok Leyland Project Services Limited v Ashok Leyland Investment Services Limited v Gulf Oil Limited v Hinduja HCL Sing Tel Communications Private Limited v Lufthansa Cargo Limited v Ashok
Leyland Information Technology Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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7,500,000 |
Equity Shares |
Rs. 10/- Each |
Rs. 75.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
5,800,000 |
Equity Shares |
Rs. 10/-
Each |
Rs. 58.000
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 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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58.000 |
58.000 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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0.301 |
0.00 |
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4] (Accumulated Losses) |
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0.000 |
(33.706) |
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NETWORTH |
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58.301 |
24.294 |
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LOAN FUNDS |
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1] Secured Loans |
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160.705 |
87.515 |
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2] Unsecured Loans |
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64.100 |
64.100 |
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TOTAL BORROWING |
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224.805 |
151.615 |
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DEFERRED TAX LIABILITIES |
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7.311 |
0.957 |
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TOTAL |
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290.417 |
176.866 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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69.591 |
59.841 |
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Capital work-in-progress |
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3.786 |
1.203 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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220.495 |
145.035 |
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Sundry Debtors |
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118.867 |
98.954 |
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Cash & Bank Balances |
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31.976 |
27.599 |
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Other Current Assets |
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4.271 |
3.872 |
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Loans & Advances |
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66.187 |
41.541 |
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Total
Current Assets |
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441.796 |
317.001 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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216.462 |
195.358 |
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Provisions |
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8.294 |
5.821 |
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Total
Current Liabilities |
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224.756 |
201.179 |
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Net Current Assets |
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217.040 |
115.822 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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290.417 |
176.866 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
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Sales Turnover |
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1045.808 |
848.905 |
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Other Income |
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2.619 |
6.739 |
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Total Income |
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1048.427 |
855.644 |
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Profit/(Loss) Before Tax |
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43.937 |
34.310 |
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Provision for Taxation |
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9.930 |
1.665 |
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Profit/(Loss) After Tax |
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34.007 |
32.645 |
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Expenditures : |
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Raw Material Consumed |
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720.500 |
564.938 |
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Purchases made for re-sale |
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0.000 |
1.637 |
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Consumption of stores and spares parts |
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44.437 |
39.070 |
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Salaries, Wages, Bonus, etc. |
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116.855 |
110.243 |
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Payment to Auditors |
|
0.132 |
0.133 |
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Interest |
|
8.757 |
6.635 |
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Insurance Expenses |
|
1.273 |
0.786 |
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Power & Fuel |
|
13.016 |
12.645 |
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Depreciation & Amortization |
|
8.657 |
8.449 |
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Other Expenditure |
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130.291 |
90.597 |
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Increase/(Decrease) in Finished Goods |
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(39.428) |
(13.799) |
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Total Expenditure |
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1004.490 |
821.334 |
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KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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3.24 |
3.81 |
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Net Profit Margin (PBT/Sales) |
(%) |
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4.20 |
4.04 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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4.19 |
4.01 |
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Return on Investment (ROI) (PBT/Networth) |
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0.75 |
0.59 |
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Debt Equity Ratio (Total Liability/Networth) |
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3.85 |
8.28 |
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Current Ratio (Current Asset/Current Liability) |
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1.96 |
1.57 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8
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Name of the company |
AUTOMOTIVE COACHES AND COMPONENTS LIMITED |
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Presented By |
S N Balasubramanian, General Manager Finance and Secretary |
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1) Date and description of instrument creating the change |
v Agreement for Hypothecation of goods in Form K dated 22.04.1987 v Agreement for Hypothecation of debts and assets in Form L dated 22.04.1987 v Form K Special dated 22.04.1987 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 8.100 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 |
A first charge by way of hypothecation of all the current assets of the Company situate at the Plot No. C1 and D6 Sipcot Industrial Complex, Gummidipoondi, or wherever else. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Cash Credit advances @1% above SBAR rate subject to a minimum of 17.5% per annum with quarterly rests. |
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5) Name and Address and description of the person entitled to the charge. |
M/s State Bank of India, Commercial Branch, 232, NSC Bose Road, Chennai – 600 001, Tamilnadu, India. |
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6) Date and brief description of instrument modifying the charge |
v 29.09.2005 – Supplemental Agreement of Loan for increase in the overall limit in Form C.1-A. v 29.09.2005 – Supplemental Agreement of Hypothecation of goods and assets for increase in the overall limit in Form C.2-A. v 29.09.2005 – Supplemental Deed of Guarantee for increase in overall limit in Form C.4-A. v 29.09.2005 – Letter regarding the grant of individual limits with in the overall limit in Form C.5 |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Enhancement in Working Capital limits and sanction of new term loan, as per details below:
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This form is for |
Modification of charge |
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Whether charge is modified in favour of asset reconstruction company (ARC) of assignee |
No |
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Charge Identification (ID) number of the charge to be modified |
90289983 |
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Corporation identity number (CIN) or foreign company registrations number of the company |
U34100TN1980PLC008389 |
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Name of the company |
AUTOMOTIVE COACHES AND COMPONENTS LIMITED |
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Address |
Khivraj Complex- II, 2nd Floor, 477 – 482, Anna Salai,
Chennai – 600035, Tamilnadu, India. |
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Type of Charges |
v Book Debts v Movable property (not being pledge) |
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Whether consortium finance is involved |
No |
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Whether joint charge involved |
No |
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Number of charge holder(s) |
1 |
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Particular of the charge holder |
Name : State Bank of India Address : Commercial Branch, 232, NSC Bose Road, City : Chennai State : Tamilnadu ISO Country Code : IN Pin Code : 600001 E-mail ID: chitrabalasubramanian@gmail.com |
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Nature or description of the instrument creating or modifying the charge |
v Supplemental Agreement of Loan for increase in the Overall Limit Form C. 1-A v Supplemental Agreement of Hypothecation of goods and assets for increase in the overall limit in Form C.2-A. v Letter regarding the grant of individual limits with in the overall limit in Form C.5 |
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Date of the instrument creating charge |
15.12.2006 |
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Whether charge created or modified outside India |
No |
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Amount Secure by the charge |
Rs. 350.000 millions |
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Brief particulars of the principal terms and conditions and extent and operation of the charge |
(a) Rate of Interest As Stipulated by the Bank from time to time. (b) Terms of repayment As Stipulated by the Bank from time to time. (c) Margin As Stipulated by the Bank from time to time. (d) Extent and operation of the charge As mentioned in the Agreement and Attachment. |
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Short particulars of the Property charged |
Primary: Hypothecation of Company’s Current Assets Viz., stocks of raw materials, stock in progress, finished goods, consumable stores, spares and receivables. Collateral : Charge over the Company’s fixed assets – land and building, Plant and Machinery, Misc. Fixed Assets (WDV as on 31.03.2006 : Rs. 68.500 millions) including the assets to be created out of the Term Loan./ |
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Whether any of the property or interest therein under reference is not registered in the name of the company |
No |
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Date of latest modification prior to the present modification |
29.09.2005 |
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Particulars of the present modification |
By the present modification the overall limit has been enhanced from Rs. 190.000 millions to Rs. 350.000 millions and the existing charge on the Current Assets and the Fixed Assets belonging to the Company have been extended to cover the enhanced limit and the details of which are given by way “Attachment” to this form. |
History
The company was incorporated on 27th August, 1980 at Chennai in Tamil Nadu having Company Registration No. 8389.
Business
The company is engaged in manufacture of Tipper Bodies, Bodies for Buses and special vehicles, semi trailers, running gears, trailer accessories, mobile container lifters, fifth wheel hoists, engine power packs and front end structures.
The company is in trade terms with:
· Ashok Leyland Limited
Ennors, Chennai, Tamil Nadu, India
· Telco Limited
Pune, Maharashtra, India
· National Aluminium Company Limited
· Indian Oil Corporation Limited
· Bokaro Steel
The company operates from caption owned office of area admeasuring 15,000 sq.fts. and caption factory is also owned by the company of area 75,000 sq.fts.
The company employs 700 persons in its’ set up.
The company was promoted by Ashok Leyland and the Tamil Nadu Industrial Development Corporation in the 1980’s. It has two Divisions:
·
Automotive
Coaches & Components Division:
This is the largest Tipper body manufacture in the organised sector in India, with its plant at Gummidipoondi, Tamil Nadu. Apart from Tipper Bodies, the company manufactures Front End Structures, Container Trailers and Car Carriers. The company intends to widen its product range by introducing select, high-volume after-chassis products and emerge as a dominant player in the Indian after-chassis market.
· PL Haulwel Trailers (PLHT) Division:
PL Haulwel Trailers Limited manufactures a wide variety variety of after chassis products, including Fifth Wheel Couplers and Hists – 2” and 3.5” fifth wheel couples, adjustable couplers, double oscillating couplers, fifth wheel tip hoists Semi Trailers – Flat beds )Skeleton/platforms), semi low beds, low beds and Full Trailers upto 100T capacity Container Trailers Ladle Carriers, for foundries (Steel / Aluminium) Running gears for LPG Tankers Tipping semi Trailers upto 35T capacity Car / Truck / Tractor Carriers Bottom dumpers Container side loaders / Transporters under collaboration from HAMMAR MASKIN AB, on rigid and semi trailers. All types of user-specific custom-designed trailers for niche applications.
Though, Design and manufacturing skills in after-chassis products, PLHT has established a market not only within India but also in the neighbouring countries – Sri Lanka, Bangladesh, Nepal, Vietnam and Myanmar.
Industry
The Automobile Industry has witnessed a dramatic transition during the year as number of multinationals entered the Indian Market with high expectations.
Total passenger car sales in the first four months of the fiscal 1998-99 fell by 3.5 percent compared to the previous year.
In the passenger car segment the most significant technological advances being brought in by the new small car makers, with electronically controlled Multipoint Fuel injection systems and multi valve cylinders which offer, improved fuel economies and higher power.
Production of the Indian Commercial Vehicles Industry in 1997-98 was over 0.156 million units. This is roughly 1.8% of country GDP.
In the two wheeler segment, the Industry has grown from a modest production of 150 units in 1950 to three million in 1998.
During April-November 1998 car output was down by 2.3 percent as the sales growth which was down by 3 percent.
It is expected that the new depreciation norms for the new commercial vehicles would be an advantage and incentive for growth. Depreciation on vehicles purchased after 1st October, 1998 has been increased from 20 percent to 40 percent.
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 :
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. 39.94 |
|
UK Pound |
1 |
Rs. 79.03 |
|
Euro |
1 |
Rs. 63.39 |
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, they have no basis upon which to
recommend credit dealings |
No Rating |
|