MIRA
INFORM REPORT
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Report Date : |
31.12.2008 |
IDENTIFICATION DETAILS
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Name : |
MACKINTOSH BURN LIMITED |
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Registered Office : |
D-1/1, Gillander House, 8,
Netaji Subhas Road, Kolkata – 700 001, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
29.04.1913 |
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Com. Reg. No.: |
2377 |
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CIN No.: [Company
Identification No.] |
U45201WB1913PLC002377 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALM00584D |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Civil Construction |
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 2700000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade relations are fair. Business is active. General financial position
is satisfactory. No complaints have been heard so far. Subjects current year
and future performance is expected to be affected due to global meltdown and
recession in the industry. It may ultimately affect the payment behaviours of
the subject resulting in to delay. The company can be considered normal for business dealings of usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
D-1/1, Gillander House, 8,
Netaji Subhas Road, Kolkata – 700 001, West |
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Tel. No.: |
91-33-22207803 /
05 / 9149 / 22102175 |
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Fax No.: |
91-33-22209149 /
22309149 |
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E-Mail : |
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Corporate Office : |
80, |
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Mobile No.: |
91-9433020237 |
DIRECTORS
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Name : |
Mr. Gouranga
Ganguli |
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Designation : |
Director |
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Address : |
47, |
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Date of Birth/Age : |
01.01.1936 |
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Date of Appointment : |
29.09.2003 |
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Election Commission
Identity Card no. : |
WB/23/152/591272 |
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Name : |
Mrs. Nilmani Dhar |
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Designation : |
Managing Director |
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Address : |
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Date of Birth/Age : |
21.01.1941 |
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Date of Appointment : |
12.05.2007 |
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Election Commission
Identity Card no. : |
WB/23/109/423029 |
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Name : |
Mrs. Subrata Ray |
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Designation : |
Director |
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Address : |
A-8/9, Happy Nook Co-Op Housing Society Limited, Kolkata –
700 078, West |
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Date of Birth/Age : |
27.04.1937 |
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Date of Appointment : |
29.09.1997 |
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Election Commission
Identity Card no. : |
LLH3099579 |
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Name : |
Mr. Subhash Ranjan
Basu |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
05.03.1939 |
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Date of Appointment : |
29.09.1997 |
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Election Commission
Identity Card no. : |
KNH6703946 |
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Name : |
Mrs. Uma Pada
Chakraborty |
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Designation : |
Director |
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Address : |
26-C, P |
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Date of Birth/Age : |
01.12.1933 |
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Date of Appointment : |
29.09.1997 |
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Election Commission
Identity Card no. : |
WB/20/137/909014 |
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Name : |
Mr. Kishore Kanti L Roy |
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Designation : |
Director |
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Address : |
D/C-1/7, Jyangra Battala, Baguiati, Kolkata – 700 059,
West |
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Date of Birth/Age : |
02.03.1941 |
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Date of Appointment : |
18.12.2000 |
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Election Commission
Identity Card no. : |
WB/20/091/771100 |
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Name : |
Mr. Indrajit Ray |
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Designation : |
Director |
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Address : |
357/1/4A, P A S Road, Kolkata – 700 068, West |
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Date of Birth/Age : |
13.09.1948 |
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Date of Appointment : |
30.07.2001 |
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Election Commission
Identity Card no. : |
WB/23/151/231039 |
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Name : |
Mr. Satya Brata Khan |
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Designation : |
Director |
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Address : |
23A/1A, |
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Date of Birth/Age : |
27.11.1948 |
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Date of Appointment : |
01.04.1996 |
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Election Commission
Identity Card no. : |
WB/23/151/573016 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
Equity share breakup
(percentage of total equity)
(As on
30.09.2007)
|
Category |
Percentage |
|
Government (Central and State) |
48.54 |
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Bodies
corporate |
5.62 |
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Other
top fifty shareholders |
45.84 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Civil Construction |
PRODUCTION STATUS
(As on 31.03.2008)
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Particulars |
Unit |
Installed Capacity |
Actual Production |
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Structural
Fabrication |
MT |
360.00 |
79.021 |
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Timber Products |
Assorted Quantity |
- |
0.007 |
GENERAL INFORMATION
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No. of Employees : |
338 |
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Bankers : |
Allahabad Bank Industrial Finance Branch, 17, R |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Vidya and Company Chartered Accountants |
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Address : |
21, Hemanta Bosu Sarani, Kolkata – 700 001, West |
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Joint Venture : |
·
MBL-FNC
Joint Venture ·
·
ALS-MBL-JV |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9 |
6% Cumulative Redeemable Preference Shares |
Rs.3500/-
each |
Rs.0.032
million |
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890 |
Equity Shares |
Rs.3500/-
each |
Rs.3.115
milions |
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Total |
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Rs.3.147 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
890 |
Equity Shares |
Rs.3500/-
each |
Rs.3.115 millions
|
Note
Of the above
·
453 Equity Shares of Rs.3500 each have been allotted
as fully paid up pursuant to a contract without any payment being received in
cash.
·
151 Equity Shares of Rs.3500 each have been allotted
as fully paid up Bonus Shares by way of Capitalisation of Reserve.
·
286 Equity Shares of Rs.3500 each have been allotted
by way of conversion of loan.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
3.115 |
3.115 |
3.115 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
532.961 |
389.196 |
300.103 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
536.076 |
392.311 |
303.218 |
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LOAN FUNDS |
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1] Secured Loans |
101.992 |
52.159 |
28.536 |
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2] Unsecured Loans |
53.638 |
52.278 |
50.917 |
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TOTAL BORROWING |
155.630 |
104.437 |
79.453 |
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DEFERRED TAX LIABILITIES |
6.851 |
7.764 |
3.043 |
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TOTAL |
698.557 |
504.512 |
385.714 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
170.219 |
163.559 |
78.176 |
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Capital work-in-progress |
0.327 |
2.361 |
0.368 |
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INVESTMENT |
0.016 |
0.016 |
0.016 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
624.373 |
529.778 |
162.413 |
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Sundry Debtors |
288.081 |
181.767 |
303.467 |
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Cash & Bank Balances |
611.019 |
509.164 |
644.469 |
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Other Current Assets |
0.008 |
0.007 |
0.006 |
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Loans & Advances |
749.677 |
543.716 |
382.959 |
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Total
Current Assets |
2273.158
|
1764.432
|
1493.314 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
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Current Liabilities |
1744.617 |
1425.491 |
1185.804 |
|
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Provisions |
0.546
|
0.365
|
0.356 |
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Total
Current Liabilities |
1745.163
|
1425.856 |
1186.160 |
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Net Current Assets |
527.995 |
338.576 |
307.154 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
698.557 |
504.512 |
385.714 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
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Sales Turnover |
3132.741 |
2816.728 |
2588.019 |
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Other Income |
51.314 |
28.582 |
17.653 |
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Total Income |
3184.055 |
2845.310 |
2605.672 |
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Profit/(Loss) Before Tax |
172.855 |
143.449 |
148.209 |
|
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Provision for Taxation |
60.095 |
53.688 |
48.099 |
|
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Profit/(Loss) After Tax |
112.760 |
89.761 |
100.110 |
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Expenditures : |
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Raw Material Consumed |
854.566 |
754.848 |
289.627 |
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Purchases made for re-sale |
3.786 |
15.191 |
32.121 |
|
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Consumption of stores and spares parts |
36.378 |
41.852 |
27.775 |
|
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Salaries, Wages, Bonus, etc. |
70.708 |
59.363 |
52.680 |
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Managerial Remuneration |
0.752 |
0.476 |
0.473 |
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Payment to Auditors |
0.109 |
0.072 |
0.053 |
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Interest |
4.774 |
3.968 |
5.499 |
|
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Insurance Expenses |
6.792 |
3.917 |
1.915 |
|
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Power & Fuel |
22.967 |
19.946 |
10.247 |
|
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Depreciation & Amortization |
21.098 |
13.995 |
8.556 |
|
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Other Expenditure |
1989.270 |
1788.233 |
2028.517 |
|
Total Expenditure |
3011.200 |
2701.861 |
2457.463 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
PAT / Total Income
|
(%) |
3.54
|
3.15
|
3.84 |
|
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Net Profit Margin
(PBT/Sales)
|
(%) |
5.52
|
5.09
|
5.73 |
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Return on Total Assets
(PBT/Total Assets}
|
(%) |
7.07
|
7.44
|
9.43 |
|
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Return on Investment (ROI)
(PBT/Networth)
|
|
0.32
|
0.37
|
0.49 |
|
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|
|
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|
Debt Equity Ratio
(Total Liability/Networth)
|
|
3.55
|
3.90
|
4.17 |
|
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|
|
|
Current Ratio
(Current Asset/Current Liability)
|
|
1.30
|
1.24
|
1.26 |
LOCAL AGENCY FURTHER INFORMATION
Form No. 8
|
Corporate
identity number of the company |
U45201WB1913PLC002377 |
|
Name of the
company |
MACKINTOSH BURN LIMITED |
|
Address of the
registered office or of the principal place of business in |
D-1/1, Gillander House, 8,
Netaji Subhas Road, Kolkata – 700 001, West |
|
This form is for |
Modification of
charge |
|
Type of charge |
· Immovable property · Book debts · Movable property (not being pledge) · Floating charge · Others o Movable Plant and Machinery etc. |
|
Particular of
charge holder |
Allahabad Bank Industrial Finance Branch, 17, R |
|
Nature of
instrument creating charge |
·
General
Letter of Hypothecation ·
Supplemental
Letter of Mortgage confirming deposit of title deeds. |
|
Date of
instrument Creating the charge |
04.09.2008 |
|
Amount secured by
the charge |
Rs.934.500
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of interest Cash Credit: @ 1%
Below the Allahabad Bank prime lending rate which is at present 14.00% p.a. with
monthly rests subject to change in PLR from time to time. Term Loan : At
Allahabad Bank prime lending rate which is at present 14.00% p.a. with
monthly rests subject to change in PLR from time to time. Term of repayment Term Loan
(Rs.54.500 millions): Repayable by 18 Quarterly Instalments of Rs.3.028
millions each commencing from end of June 2008. Working Capital
(Rs.880.000 millions): Repayable on demand subject to renewal / Review from
time to time. Margin As applicable Extent and
operation of the charge All the Assets
both movable and immovable stand Hypothecated and mortgage by way of first
charge in favour Allahabad Bank, IFB, Kolkata. Others The Hypothecation
Goods and all sales realization and insurance proceeds thereof and all the
book debts and its realization and all the documents under this security
shall be held as the Bank’s exclusive property and the company will not
create any charge, mortgage, lien or encumbrances affecting the same. The
hypothecation assets shall be kept at the companies risk and expenses in good
condition and fully insured against loss or damage under Bank Clause. |
|
Particulars of
the property charged |
Hypothecation of
all products, goods and movable property of any kind including all movable plants
and machinery etc and stocks which now or hereafter from time to time stored
or to be stored at the company’s premises and godowns at various sites in
India or wherever else and also all present and future book debts,
receivables, claims etc. Equitable mortgage of immovable properties situated
at Plot No. 18/8, Block-DD, Sector-1, |
|
Particulars of
the present modification |
By this
modification the overall credit facilities have been enhanced from Rs.786.600
millions to Rs.934.500 millions. All other terms, conditions and properties
charged and mortgaged as security remain unaltered. |
Performance
During the year, the value of work done increased by 11.22% to Rs.3132.700
millions and the profit before tax increased by 25.31% to Rs.172.300 millions.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry
Structure and Development
The Indian Economy continues to be one of the fastest growth economies in
the World. During the year the economy recorded a robust real GDP growth of
8.70%. With an average growth target of 9% during the Eleventh Year Plan, the
country is poised to maintain the pace of growth. The continued emphasis on
development of infrastructure projects has led to a boom in the construction
industry. In the face of severe competition and entry of several new players in
the field, the Company had a very tough time to retain its market share. Its
initiative for cost reduction and some strategic planning contributed to
maintaining its market share. Its endeavor to penetrate sector’s real estate
development project has opened a new horizon for the Company.
Opportunities
and Threats
With the rapid growth of economy in the recent years, the Government of India
has stressed on the importance and urgency of removing infrastructure
constraints. It has given a thrust on Infrastructure Development specially in
the filed of Power, Ports, Highways, Water Supply and Rural Health. These
coupled with continued Industrial Resurgence in
Divisionwise
Performance
The Company operates through two divisions viz. Construction and
Workshop. Performance of these divisions during the year is briefly stated
below:
Construction
Construction Division crossed another milestone of Rs.3000 millions in
turnover be achieving Rs.3132.700 millions registering a growth of 11.22% as
against the previous year’s work value of Rs.2816.700 millions. Apart from
diversification in land development, canal/river desilting, the Company
ventured in new fields of engineering activities like sewerage and drainage
network, sewage lifting station, drainage pumping station, water treatment
package, construction of industrial structure etc. The sector-wise performance
was as under :
|
|
As on 31.03.2008 (Rs. In millions) |
As on 31.03.2008 % of Total |
|
Buildings |
1234.300 |
39% |
|
Bridges |
287.400 |
9% |
|
Roads |
457.100 |
15% |
|
Drainage and Others |
1153.900 |
37% |
|
|
|
|
|
Total |
3132.700 |
100% |
During the year the Division completed successfully several projects
including the following major ones :
·
Construction of
·
Construction of
·
Construction of
·
Housing Complex-Ruchira Residency on E.M. By-Pass,
Kolkata (Rs.108.400 millions)
·
Construction of Najrul Islam Cultural Centre at
Agartala, Tripura (Rs.111.800 millions)
·
Construction of
·
Dredging of Julkia Khal at Singur (Rs.86.500
millions)
·
Civil Work for Oxygen Plant of Praxair in DSP, SAIL
(Rs.59.300 millions)
·
Construction of Rani Laxmi Bai Hall at IIT,
Kharagpur (Rs.71.000 millions)
·
Jalangi Anti Erosion Work in Murshidabad (Rs.64.600
millions)
·
Construction of three lane twin bridge over
In the face of challenging business environment, the Company secured
orders worth Rs.5530.600 millions. Some of the valued contracts secured during
the year are:
·
Construction of underground Car Park and
beautification project at BBD Bag, Kolkata (Rs.262.400 millions)
·
Construction of bridge across river Kangsaboti,
Purulia (Rs.90.000 millions)
·
Construction of Low Cost Housing project at
Nonadanga-Phase-III, Kolkata (Rs.114.900 millions)
·
Strengthening of Part of NH-2 Bypass (Rs.165.200
millions)
·
Widening and strengthening of Tamluk –
·
Construction of
·
Construction of Tunnel Drain relating to expansion
of IISCO Steel Plant (Rs.496.900 millions)
·
Improvement of Drainage Infrastructure work at
Singur (Rs.500.000 millions)
·
Construction of Office Building of Areva at
·
Finishing work of Kolkata High Court (Rs.147.500
millions)
·
Construction of Ultadanga Fly Over (Rs.700.000
millions)
·
Construction of Three Tier Basement and Open Air
Stadium at Rajdanga, Kasba, Kolkata (Rs.215.500 millions)
·
Construction of
·
Canal Rehabilitation for Churial Diversion canal
(KEIP Project) (Rs.136.300 millions)
The total value of work yet to be executed in respect of contracts on
hand as on 31st March, 2008 is Rs.7960 millions
Workshop
Division
Workshop Division continued to suffer from lack of orders. It recorded a
turnover of Rs.1.419 millions as against the previous year’s turnover of
Rs.1.561 millions.
Outlook
The business prospect of Workshop Division is not encouraging. But
Construction Division is expected to perform well. Resource allocation by the
Government on infrastructure development like Power, Port, Highways Rural
Healthcare and urban infrastructure development is expected given impetus to
construction activities. The division ex expected to benefit from these
economic activities. The company is continuously endeavoring to venture in new
areas. With these efforts coupled with steps to improve operational efficiency,
the Company is expected to maintain the trend of growth and profitability.
Financial
Performance
Profit before tax is increased by 25.31% in spite of all round increase
in cost of inputs like materials, labour, power and fuel and freight, and
growth of turnover is 11.22%. Profit after tax increased by 33.85% to
Rs.112.170 millions from Rs.83.803 millions in 2006-07.
NOTES ON
ACCOUNTS
Contingent
Liabilities Not Provided For
·
Claims against the company not acknowledged as debt
Rs.2.424 millions
·
Sales Tax demand not admitted by the Company and
under appeal Rs.0.710 million
·
Service tax demand not admitted by the Company and
is under appeal is Rs.51.559 millions
·
Counter guarantee furnished to bank as at 31st
March, 2008 is Rs.431.979 millions
·
Estimated amount of contracts remaining to be
executed on capital account and not provided for gross value Rs.13.246
millions.
·
The company used percentage completion method to
recognize revenue during the year. In case of contract entered into before
01.04.2003, the stage of completion of contract is determined on the basis of
technical evaluation of work. In respect of contracts entered on or after
01.04.2003 the stage of completion of contract is determined in proportion of
the contract cost incurred for work performed up to the reporting date to the
estimated total contract cost, where cost can be estimated reliably and in
other cases it is determined on the basis of technical survey of work
performed.
·
During the year subject-FNC, a joint venture of the
company and FNC construction and company completed the work of design and
construction of Electrical control building and supply and laying of RCC and
stoneware sewers in Rajarhat Newtown, Kolkata, the Company’s share of
profit/loss being 60%.
The company through its other joint venture undertaken
·
The work of construction of a bridge in
·
The work of improvement of Chakdah-Bongaon and
Kapa-Barajaguli road funded by Asian Development Bank (ADB) in joint venture
with A L Sudershan Construction Company Limited, Secunderabad in the name
‘ALS-MBL JV.’ The company’s share of Profit/loss in the JV being 49%.
All the Joint ventures recognize revenue on the basis of percentage
completion method of construction contracts.
The type of joint ventures is “Jointly Controlled Entities” and company’s
share of profit or loss accounted on determination of profit or loss by the
Joint Ventures.
FIXED ASSETS
·
Land
·
Building
·
Plant and Machinery
·
Laboratory Equipment
·
Office Furniture
·
Office Equipment
·
Motor Vehicle and Cycle
·
Railway Siding
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.50 |
|
|
1 |
Rs.70.02 |
|
Euro |
1 |
Rs.67.95 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|