MIRA
INFORM REPORT
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Report Date : |
01.08.2008 |
IDENTIFICATION DETAILS
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Name : |
HINDUSTAN TIN WORKS LIMITED |
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Registered Office : |
488, Bartan Market, Sadar Bazar, Delhi – 110006, India |
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Country : |
India |
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Financials (as
on) : |
31.03.2007 |
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Date of Incorporation : |
11.12.1958 |
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Com. Reg. No.: |
55-3006 |
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CIN No.: [Company
Identification No.] |
L27109DL1958PLC003006 |
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TAN No.: (Tax Deduction &
Collection Account No.) |
DELH03792F |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares
are Listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and trading of Tin Metal Containers and Tin
Sheets |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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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 3000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established company having
satisfactory track. Trade relations are fair. Payments are usually correct
and as per commitments.
The company can be considered normal for business dealings
at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
488, Bartan Market, Sadar Bazar, Delhi – 110 006, India |
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Tel. No.: |
91-11-2777 3645 / 2623 1990/ 23679016 |
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Fax No.: |
91-11-2355 0405 / 2773 0405 |
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E-Mail : |
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Website : |
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Corporate Office : |
Upper Groun Floor, Antriksh Bhawan, 22 Kasturba Gandhi
Marg, New Delhi – 110001, India |
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Tel. No.: |
91-11-23357275/76/77/78/79 |
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Fax No.: |
91-11-23357271/73 |
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Email : |
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Factory 1: |
Village and Post Office, Bhigan, Dhatoori Road, Tehsil Gannaur, Dist. Murthal, Sonepat – 131 001, Haryana Tel No.:91-130-2475771/73 Website : http://www.hindustantin.biz Email : info@hindustantin.co.in |
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Factory 2: |
Village Jharmajhri, Barotiwala, Dist. Solan, Himachal Pradesh, India |
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Factory 3: |
A-10, Site IV, Sahibabad Industrial Area, Sahibabad, Dist.
Ghaziabad, Uttar Pradesh, India |
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Mumbai office |
618, Tulsiani Chambers, Nariman Point, Mumbai – 400 021,
Maharashtra |
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Tel. No.: |
91-22-2287 1612 / 2282 3894/ 22842223/24 |
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Fax No.: |
91-22-2204 4202 |
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E-Mail : |
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New Delhi Office : |
KN/16 Gali No.10, Anand Parbat Industrial Area, New Delhi, India |
DIRECTORS
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Name : |
Mr. Vijay Kumar Bhatia |
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Designation : |
Chairman |
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Name : |
Mr. Sanjay Bhatia |
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Designation : |
Managing Director |
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Date of Birth/Age : |
53 Years |
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Qualification : |
B. Com, LLB |
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Experience : |
28 Years |
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Name : |
Mr. Ashok Kumar Bhatia |
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Designation : |
Whole Time Director |
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Name : |
Mr. Gaurav Bhatia |
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Designation : |
Director |
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Name : |
Mr. Rajinder Somani |
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Designation : |
Director |
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Name : |
Mr. N.R Sahni |
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Designation : |
Director |
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Name : |
Mr. B.K. Batra |
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Designation : |
Director |
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Name : |
Mr. Harlsh Malhotra |
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Designation : |
Director |
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Name : |
Mr. Vijay Handa |
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Designation : |
Director |
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Name : |
Mr. Beharl Lal Khurana |
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Designation : |
Director |
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Name : |
Mr. Ramesh Kumar Jian |
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Designation : |
Director |
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Name : |
Mr. M K Zutshi |
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Designation : |
Director |
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Name : |
Mr. Manoj Kumar Jian |
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Designation : |
Whole Time Director |
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Date of Appointment : |
29.01.2007 |
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Name : |
Mr. Sudhir Sachdeva |
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Designation : |
Director |
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Date of Appointment : |
30.04.2007 |
KEY EXECUTIVES
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Name : |
Mrs. Archana Maini |
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Designation : |
Company Sectary |
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Address : |
UGF Antriksh Bhawan 22 K G Marg, New Delhi – 110001, India |
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Tel No.: |
91-11-23357276/ 279 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian Promoters |
3236865 |
42.31 |
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Indian Public |
2137651 |
27.94 |
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Banks/Financial Institutions, Central/State Government |
1579 |
0.02 |
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Institutions |
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Indian Public Companies |
327661 |
4.28 |
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Indian Private Companies |
726390 |
9.50 |
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Foreign Companies |
1150800 |
15.04 |
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Non Resident Indians |
48019 |
0.63 |
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Demat Transit |
20718 |
0.28 |
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Total |
7649683 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and trading of Tin Metal Containers and Tin
Sheets |
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Products : |
·
Metal Containers and Components - 900700 · Tin Plates · Scrap Sale ·
Printed Sheets – 8007000
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PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Containers and Components |
Nos. |
261.500 |
118.928 |
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Printed and Lacquered Sheets |
M. Tons |
370.000 |
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Note:
Since licensing System under the New Industrial Policy has been
dispensed with, therefore no licence capacity has been given.
Installed capacity is certified by the management and not verified by
the auditor being a technical matter.
GENERAL
INFORMATION
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Suppliers : |
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No. of Employees : |
900 |
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Bankers : |
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Facilities : |
Notes: Secured by pari passu
first on gross block of the fixed assets of the company both present and
future and in additional by second charge on current assets of the company
and guarantee by promoters Directors. Secured by pari
passu first charge on current assets of the company both present and future
and in additional by second charge on Fixed assets of the company and
guarantee by promoters Directors. Secured against
Keyman Policy taken by the company Secured against
hypothecation of vehicles. |
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Banking Relations
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Satisfactory |
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Auditors : |
M. L. Puri and Company Chartered Accountants |
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Address: |
407, New Delhi House, Barakhamba Road, New Delhi-110002 |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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12250000 |
Equity Shares |
Rs.10/- each |
Rs.122.500 Millions |
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250000 |
Preference Shares |
Rs.10/- each |
Rs.2.500 Millions |
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Total |
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Rs.125.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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10399683 |
Equity Shares |
Rs.10/- each |
Rs.103.997
Millions |
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FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
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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 |
103.997 |
76.497 |
54.346 |
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2] Share Application Money |
0.000 |
13.200 |
0.000 |
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3] Reserves & Surplus |
498.618 |
365.965 |
269.819 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
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602.615 |
455.662 |
324.165 |
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LOAN FUNDS |
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1] Secured Loans |
544.320 |
609.040 |
395.929 |
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2] Unsecured Loans |
53.011 |
68.260 |
62.243 |
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TOTAL BORROWING
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597.331 |
677.300 |
458.172 |
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DEFERRED TAX LIABILITIES |
33.805 |
28.195 |
24.170 |
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TOTAL
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1233.751 |
1161.157 |
806.507 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
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308.102 |
224.517 |
215.145 |
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Capital work-in-progress
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3.593 |
348.108 |
5.686 |
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INVESTMENT
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32.946 |
0.573 |
2.107 |
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DEFERREX TAX ASSETS
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0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS &
ADVANCES
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Inventories
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179.889
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363.171
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256.546
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Sundry Debtors
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461.241
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472.812
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463.603
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Cash & Bank Balances
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58.664
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17.355
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33.919
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Other Current Assets
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0.000
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0.000
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0.000
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Loans & Advances
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325.419
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105.196
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58.677
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Total Current Assets
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1025.213
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958.534 |
812.745
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
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117.852
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360.107
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222.980
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Provisions
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18.251
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10.467
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6.196
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Total Current Liabilities
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136.103
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370.574 |
229.176
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Net Current Assets
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889.110
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587.960 |
583.569
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MISCELLANEOUS EXPENSES
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0.000 |
0.000 |
0.000 |
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TOTAL
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1233.751 |
1161.157 |
806.507 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
1742.439 |
1510.645 |
1492.808 |
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Other Income |
80.490 |
5.313 |
0.000 |
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Total Income |
1822.929 |
1515.958 |
1492.808 |
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Profit/(Loss) Before Tax |
95.352 |
61.095 |
36.530 |
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Provision for Taxation |
33.153 |
25.050 |
13.500 |
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Profit/(Loss) After Tax |
62.199 |
36.045 |
23.030 |
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Export Value |
125.955 |
97.288 |
75.739 |
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Import Value |
371.909 |
876.866 |
416.272 |
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Expenditures : |
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Manufacturing Expenses |
1624.018 |
1383.820 |
0.000 |
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Increase/(Decrease) in Finished Goods |
45.331 |
8.440 |
0.000 |
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Interest and Financial Expenses |
35.484 |
41.777 |
0.000 |
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Depreciation & Amortization |
22.744 |
20.826 |
0.000 |
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Other Expenditure |
0.000 |
0.000 |
1431.873 |
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Total Expenditure |
1727.577 |
1454.863 |
1431.873 |
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SUMMARISED RESULTS
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PARTICULARS |
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31.03.2008 (Full Year) |
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Sales Turnover |
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1853.900 |
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Other Income |
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|
28.900 |
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Total Income |
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1882.800 |
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Total Expenditure |
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1718.800 |
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Operating Profit |
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|
164.000 |
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Interest |
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|
67.100 |
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Gross Profit |
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|
96.900 |
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Depreciation |
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|
27.500 |
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Tax |
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|
26.400 |
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Reported PAT |
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|
41.700 |
QUARTERLY RESULTS
|
PARTICULARS |
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30.09.2008 (1st Quarterly) |
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Sales Turnover |
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|
670.900 |
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Other Income |
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|
6.600 |
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Total Income |
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|
677.500 |
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Total Expenditure |
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|
603.100 |
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Operating Profit |
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|
74.400 |
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Interest |
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|
29.100 |
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Gross Profit |
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|
45.300 |
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Depreciation |
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|
7.500 |
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Tax |
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|
4.000 |
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Reported PAT |
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|
33.400 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt Equity Ratio |
1.22 |
1.48 |
1.27 |
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Long Term Debt
Equity Ratio |
0.52 |
0.58 |
0.34 |
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Current Ratio |
1.51 |
1.30 |
1.41 |
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TURNOVER RATIOS |
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Fixed Assets |
3.78 |
3.83 |
3.78 |
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Inventory |
6.71 |
5.13 |
6.95 |
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Debtors |
3.90 |
3.40 |
3.63 |
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Interest Cover
Ratio |
1.44 |
2.46 |
2.06 |
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Operating Profit
Margin (%) |
4.05 |
7.78 |
5.94 |
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Profit Before
Interest and Tax Margin (%) |
2.81 |
6.47 |
4.68 |
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Cash Profit
Margin (%) |
1.66 |
3.32 |
2.78 |
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Adjusted Net
Profit Margin (%) |
0.41 |
2.01 |
1.52 |
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Return on Capital
Employed (%) |
4.42 |
10.83 |
9.75 |
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Return on Net
Worth (%) |
1.44 |
8.36 |
7.13 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Hindustan Tin Works was incorporated Dec.'58 as a private limited company to trade in and manufacture tin metal containers and tin sheets. The company was converted into a public limited company in Dec.'93.
The company's product range includes various types of tin/metal containers used
in packaging baby foods, edible oils, paints, pure ghee, lubricants etc. The
market leader in the industry, its clientele includes Nestle India, Heinz India
(Private) Limited, Brooke Bond Lipton, Dalmia Industries, Indian Oil
Corporation, HPCL, Asian Paints, etc.
As a part of expansion-cum-modernisation, it undertook to expand the capacity
from 6500 tpa to 16,754 tpa by setting up an additional unit at Sahibabad, UP.
The project was part financed by a public issue in Mar.'95. It also implemented
a printing project in 1994-95 to facilitate in-house printing facility, to
reduce the printing cost.
The company acquired a sophisticated plant to manufacture a wide range of cans
of different diameters. This plant at Murthal (Sonepat district), Haryana,
became operational in Mar.'96. During 1997-98, the company issued 27343 equity
shares of Rs.10/- each to shareholders of erstwhile Conwel Cans India Ltd in
terms of merger as per BIFR order dated 9/12/96.
Company has conferred award for export excellence by EEPC, also company taking
lot of measures to improve the export business.
The Company completed its restructuring exercise and has taken measures to
upgrade machinery in terms of quality and speed in both the units.
DIVIDEND
The Directors are pleased to recommend a dividend of 15% on the paid up capital of the Company for the year 2006-2007 which if approved at the forthcoming AGM will be paid to (i) all those Equity Shareholders whose names appear in the Register of Members as on 27th September 2007 and (ii) to those whose names as beneficial owners are furnished by National Securities Depository Limited and Central Depository Services (India) Limited.
OPERATIONS
The Company has achieved a turnover of Rs.1742.439 Millions as against the previous year's turnover of Rs.1510.645 Millions The Company has been successful in increasing its export sales from Rs.100.716 Millions to Rs.12991.000 Millions i.e., an increase of Rs.29.194 Millions.
EXPANSION AND
DIVERSIFICATION
The Company currently has one manufacturing plant situated at Bhigan, Dhatoori Road,
Tehsil Ganour, Murthai, Haryana. Baddi project is on hold and the company is
reviewing the feasibility of the project. Keeping in mind the increasing demand
for the Company's products, the company has decided to increase its capacity by
103.680 Millions Cans per annum. The company has already placed all the order
for the procurement of the machineries.
JOINT VENTURE AGREEMENT
The Company entered into a Joint Venture Agreement (JV) on 1st August, 2006
with Rexam Beverage Can (India Holdings) Limited, U.K, a Rexam PLC, UK Group
Company, the world leader in beverage cans and also entered into other allied
agreements. The JV, under the name and style of Rexam HTW Beverage Can (India)
Limited, is first of its kind in India and it would benefit from the synergies
of the JV Partners especially the technical and global best practices brought
in by Rexam and the established capabilities of Hindustan Tin Works Limited in
the domestic market. The JV is established to manufacture, distribute and
market two piece cans and this would provide a strategic advantage to the JV
and its Partners. The plant has started commercial production in June
2007.
THE
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Indian economy is on the fulcrum of an ever-increasing growth
curve. The Industrial growth is driven by robust performances from
manufacturing sector. India's processed foods are fast becoming the favour of
the season worldwide. With increasing sophisticated consumers and working women
demand for processed food is increasing. With increase in disposable income,
the consumers are prepared to pay more for convenience.
OPPORTUNITIES & THREATS
The Company is an established Company in tin packaging Industry:
OPPORTUNITIES
- Historical established performance.
- Established customer profile and wide customer base.
- Reputation for quality well established brand.
- Edge in raw material procurement.
- Ability to expand and diversify.
- Expansion in export market.
- Professionally & technically qualified Human Resource.
- Priority of the Government to promote Food Processing Industry.
- Significant incentives in North India.
- Innovation and new product development.
THREATS
- Global competition.
- Foreign Currency rate fluctuations.
- Competition from unorganized sector.
- Shrinking margin.
- Alternate packaging materials
- Heavy dependence of customers on weather conditions.
PRODUCT WISE
PERFORMANCE
The performance of the Company has been satisfactory in the areas like Dairy Products,
Processed Foods, Coffee and Export. Their company has been successful in
entering into nonfood areas like paints, pesticides, shoe polish etc.
OUTLOOK
The outlook of the Company seems to be very progressive. The management of the
Company is seriously engaged in the task of reducing overheads and other costs.
Company has a vision to consolidate its position as leader in metal packaging
segment.
RISK
Though the tin packaging has an edge over other modes of
packaging but the demand for other modes of packaging also shows and increasing
trend.
CONCERN
The price of tin plate the major raw material for manufacturing of Tin Cans
shows on increasing trend during the financial year 2006-07.
FINANCIAL PERFORMANCE
WITH RESPECT TO OPERATIONAL PERFORMANCE
The Company has registered 15.34% increase in turnover during the year
2006-2007 as compared to the year 2005-2006. The Export Sales has increased by
28.99 % as compared to the previous year.
The company is in trade terms with: -
- Nestle India Limited
- Hienz India Private Limited
- Hindustan Lever Limited
- Dalmia Dairy Industries Limited
- Indian Oil Corporation Limited
- Asian Paints (India) Limited
- Glaxo (India) Limited
Fixed Assets:
- Land
- Building
- Plant & Machine
- Office Equipment
- Electrical Transfer
- Furniture and Fixture
- Vehicles
- Computer
Website Details:
Profile:
Subject a premier Indian CAN manufacturer produces a wide
range of CANS and provides quality packing solutions to Dairy Products, Edible
Oils, Tea, Coffee, Motor Oils, Medicines, Pesticides, Chemical and Paint
Industries. It is one of the largest manufacturers of lithographed metal
containers in India. For further information kindly visit our profile section.
Subject Proud recipient of Cannex' 96, Cannex'97, Cannex'98,
Cannex'2003 award under the three-piece cans category. Visit the award section
to join us in our celebrations.
Tin Cans or "Green Cans" as they are called are
the most environment-friendly alternative to other forms of packing because of
their recyclable quality. HTWL takes a leading role in ensuring proper
environment responsibility by offering fully recyclable Green Cans that adhere
to internationally accepted standards. They offer wide range of Cans including
OTS, welded, round, oblong etc.
Group
Branding
The Promoter Director of HTWL are also engaged in
manufacture of Detergent Powder / Detergent Bar, Metal Printing, Indenting and
dealing in Metal / Tin Plates through its associate companies like Hi-Tech
Surfactants Limited and Parmanand Vijay Kumar.
Group
Companies:
Parmanand Vijay Kumar
The parent company of the group is actively engaged in
trading, indenting and importing Tin Mill products since 1948. Presently, with
its offices in Delhi & Mumbai, it is catering to the requirements engaged
in trading, indenting and importing Tin Mill products since 1948. Presently,
with its offices in Delhi & Mumbai, it is catering to the requirements of
tinplate consumers all over India (in all industrial sectors), including those
situated in remote comers and villages. This ardent task is being carried out
effectively with direct negotiations with foreign and Indian tinplate
manufacturers.
Hi-Tech Surfactants (Private) Limited
This group has affected a step towards diversification with
this company manufacturing Detergent Powder. It supplies the production to
Hindustan Lever Limited
Export:
Subject has emerged as the market leader with over four
decades of experience in high quality can making.
Subject is one of the leading exporters of lithographed sheets, end components
and flattened cans to at-least 14 countries including Middle East, USA and
Australia.
Its professional, result oriented and quality conscious approach has earned it
not just the business but also the goodwill of high end
Clientele, which includes both Indian as well as
Multinational companies involved in the processing of foods."As a result
of which the Companys exports growth by 70 % in year 2004-05 as compared to
year 2003-04. The company budget further growth of at-least 25% in the current
financial year i.e. 2005-06".
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.42.49 |
|
UK Pound |
1 |
Rs.84.21 |
|
Euro |
1 |
Rs.66.33 |
SCORE & RATING
EXPLANATIONS
|
SCORE
FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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 |
|