MIRA
INFORM REPORT
|
Report Date : |
18.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
NAGARJUNA CONSTRUCTION COMPANY LIMITED |
|
|
|
|
Registered Office : |
41, Nagarjuna
Hills, Punjagutta, Hyderabad - 500082, Andhra Pradesh |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
22.03.1990 |
|
|
|
|
Com. Reg. No.: |
011146 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L72200AP1990PLC011146 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business : |
Construction Activity and Cylinders Manufacturing Activity. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 52000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having fine track. Available information indicates high financial responsibilities of the company. Financial position is good. Payments are correct and as per commitments. The company can be considered good for any normal business
dealings. It can be regarded as a promising business partner in a medium to
long-run. |
LOCATIONS
|
Registered Office/ Fctory : |
41, Nagarjuna
Hills, Punjagutta, Hyderabad - 500082, Andhra Pradesh, India |
|
Tel. No.: |
91-40-23351753/ 23353551/ 23350571 |
|
Fax No.: |
91-40-23350214/ 23356445 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
|
Name : |
Mr. A V S Raju |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. A A V Ranga Raju |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. A A V Ranga
Raju |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. P C Laha |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Bala
Deshpande |
|
Designation : |
Nominee
Director ICICI Venture Funds |
|
|
|
|
Name : |
Mr. R V Shastri |
|
Designation : |
Additional
Director |
|
|
|
|
Name : |
Mr. A V N Raju |
|
Designation : |
Whole Time
Director |
|
|
|
|
Name : |
Mr. A G K Raju |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. R Abraham |
|
Designation : |
IAS (Retd.) Director |
|
|
|
|
Name : |
Mr. S Venkatachalam |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rakesh Jhunjhunwala
|
|
Designation : |
Director |
|
|
|
|
Name : |
Prof. Dr. lng. V. S. Raju
|
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. J V Ranga Raju |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. R N Raju |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. N R Alluri |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A S N Raju |
|
Designation : |
Whole Time Director |
KEY EXECUTIVES
|
Name : |
Sri M V Srinivasa Murthy |
|
Designation : |
Company Secretary and Chief General Manager |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
|
Names of
Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoter's holding |
|
|
|
Promoters |
|
|
|
— Indian promoters (including persons acting in concert) |
51225814 |
24.57 % |
|
— Foreign promoters |
-- |
-- |
|
Non- Promoter's Holding |
|
|
|
Institutional investors |
|
|
|
a. Mutual funds |
29291439 |
14.05% |
|
b. Banks, financial institutions, Insurance companies |
1734723 |
0.83% |
|
c. Central/state government |
130454 |
0.06% |
|
d. Flls * |
61382444 |
29.44% |
|
Others |
|
|
|
a. Private corporate bodies |
11402014 |
5.47% |
|
b. Indian public |
45076339 |
21.62% |
|
c. NRI s/OCB s |
3490605 |
1.67% |
|
d. Shares held by custodian against which global depository receipts have been issued |
4777068 |
2.29% |
|
|
|
|
|
Total |
208510900 |
100.00 % |
BUSINESS DETAILS
|
Line of Business : |
Construction Activity and Cylinders Manufacturing
Activity. |
PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
|
|
|
|
|
Cylinders |
Qty. Nos. |
376000 |
GENERAL
INFORMATION
|
Bankers : |
|
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
Banking
Relations : |
- |
|
|
|
|
Auditors : |
M Bhaskara Rao and Company Chartered Accountants, 6-3-652 5-D, Fifth Floor, 'KAUTILYA',
Amrutha Estates, Somajiguda, Hyderabad - 500 082, India Deloitte
Haskins and Sells Chartered Accountants Coromandel House, 1-2-10, Sardar Patel
Road, Secunderabad-500003, India |
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Joint Venture : |
|
|
|
|
|
Associates : |
|
CAPITAL STRUCTURE
(As on 31.03.2007)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
300000000 |
Equity Shares |
Rs.2/- each |
Rs.600.000
Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
208760900 |
Equity Shares |
Rs.2/- each |
Rs.417.520
Millions |
|
|
|
|
|
Of the above
(a) 10,00,000 Equity Shares of Rs.2/- each
were allotted in 1990-91 as fully paid Shares pursuant to a contract for
consideration other wise than in cash
(b)1 0,33,68,530 Equity Shares of Rs.2 each
were issued as fully paid Bonus shares in the ratio of 1 :1 by capitalisation
of Rs.206.74 million from General Reserve
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
417.020 |
206.620 |
159.000 |
|
|
2] Share Application Money |
4.760 |
31.510 |
0.000 |
|
|
3] Reserves & Surplus |
54.250 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
9914.310 |
9212.310 |
3087.400 |
|
|
NETWORTH |
0.000 |
0.980 |
0.000 |
|
|
LOAN FUNDS |
10390.340 |
9451.420 |
3246.400 |
|
|
1] Secured Loans |
|
|
|
|
|
2] Unsecured Loans |
3819.570 |
1779.270 |
648.100 |
|
|
TOTAL BORROWING |
7583.560 |
2849.470 |
2000.000 |
|
|
DEFERRED TAX LIABILITIES |
11403.130 |
4628.740 |
2648.100 |
|
|
|
115.290 |
65.910 |
0.000 |
|
|
TOTAL |
|
|
|
|
|
|
21908.760 |
14146.070 |
5894.500 |
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
|
|
|
Capital work-in-progress |
4043.170 |
1849.410 |
1088.700 |
|
|
|
185.680 |
87.550 |
9.400 |
|
|
INVESTMENT |
|
|
|
|
|
DEFERREX TAX ASSETS |
4767.630 |
877.060 |
462.500 |
|
|
|
0.000 |
0.000 |
0.000 |
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4040.540 |
3892.590 |
1523.400 |
|
|
Sundry Debtors |
5816.840 |
3016.560 |
1916.000 |
|
|
Cash & Bank Balances |
2434.000 |
2809.060 |
1372.200 |
|
|
Other Current Assets |
92.980 |
38.630 |
0.000 |
|
|
Loans & Advances |
8579.020 |
5920.980 |
2655.600 |
|
Total
Current Assets |
20963.380
|
15677.820
|
7467.200 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
6816.850 |
3910.130 |
2861.700 |
|
|
Provisions |
1244.150 |
457.400 |
305.300 |
|
Total
Current Liabilities |
8061.000 |
4367.530 |
3167.000 |
|
|
Net Current Assets |
12902.380 |
11310.290 |
4300.200 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
9.900 |
21.760 |
33.700 |
|
|
|
|
|
|
|
|
TOTAL |
21908.760 |
14146.070 |
5894.500 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
28710.520 |
18404.400 |
11885.000 |
|
|
Other Income |
291.790 |
20.250 |
48.800 |
|
|
Total Income |
29002.310 |
18424.650 |
11933.800 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
2186.450 |
1262.380 |
700.000 |
|
|
Provision for Taxation |
1029.840 |
223.340 |
127.300 |
|
|
Profit/(Loss) After Tax |
1156.610 |
1039.040 |
572.700 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Construction and Other Expenses |
24572.270 |
|
|
|
|
Establishment Expenses |
1440.700 |
960.380 |
|
|
|
Interest and Financial Charges |
503.940 |
216.950 |
11233.800 |
|
|
Depreciation |
298.950 |
181.570 |
|
|
|
Other Expenditure |
0.000 |
0.000 |
|
|
Total Expenditure |
26815.860 |
17162.270 |
11233.800 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Sales Turnover |
7622.100 |
6771.500 |
7795.100 |
|
Other Income |
3.700 |
3.800 |
10.800 |
|
Total Income |
7625.800 |
6775.300 |
7805.900 |
|
Total Expenditure |
6828.500 |
5923.300 |
6932.800 |
|
Operating Profit |
797.300 |
852.000 |
873.100 |
|
Interest |
145.200 |
233.300 |
166.900 |
|
Gross Profit |
652.100 |
618.700 |
706.200 |
|
Depreciation |
104.400 |
117.200 |
122.700 |
|
Tax |
187.400 |
165.000 |
187.100 |
|
Reported PAT |
360.300 |
336.500 |
396.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
3.99 |
5.64 |
4.80 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.62 |
6.86 |
5.89 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.74 |
7.20 |
8.18 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.21 |
0.13 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.87 |
0.95 |
1.79 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.60 |
3.59 |
2.36 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Promoted by A V S Raju and his associates,
Nagarjuna Construction Company (NCCL) was incorporated on 22 Mar.'90. It took
over the business of the erstwhile partnership firm, Nagarjuna Construction
Corporation, established in 1978. The company is mainly engaged in construction
and allied activities. It constructs industrial buildings, townships, canals,
roads, machine foundations, structural steel works, etc, on a turnkey
basis.
The Company has hived off 8-MW Wind turbines to M/s Wind Energy Systems Care
India Limited and all the legal formalities have been completed. The Company is
planning to divest from this line of actitivity during the year.
The company has secured two Mega Road Projects from the National Highways
Authority of India viz., Construction of Ahmedabad-Vadodara Expressway at a
cost of Rs.2950 Millions and LGE & C-NCC(JV) and Widening to 4/6-Lanes and
Strengthening of the existing 2 lane carriageway NH5 from Vizag towards
Srikakulam valued at Rs.1470 Millions under Unitech-NCC(JV). The Construction
of NH 5 Road project is progressing well. The Real estate division has been
doing well and the company has completed the JP Nagar Real Estate Project at
Bangalore valued at Rs.120.000 Millions.
The company has teamed up with South Korean firm-Dealim Industrial Co Limited to
undertake three project which it has bagged from National Highway Authority
during December 2004.The orders are valued at Rs.9550 Millions and these
projects would be completed in 33 months.
The company has completed the project for the supply of drinking water, in
Maharashtra. The significance of this project is that the company has done it
without electricity or pumps, but taking advantage of gravity alone. This novel
scheme has been considered as the largest project of its kind and it will
figure in the Limca Book of Records.
The company has secured new orders from various clients totaling to
Rs.3310 Millions during the month of February 2005.These projects include
Software Buildings, Residential Flats & Irrigation Works.
As both the governments are keen in given importance for promoting
infrastructure projects like flyovers, roads, bridges the company is expecting
good growth in the years to come.
During August 2005 the company has sub-divided its equity share face value from
Rs.10/- per share to Rs.2/- per share.
Operational performance:
The Company has achieved a turnover of Rs.29002.31 million - up from last
year's Rs.18424.65 million, registering a 57 per cent increase. The Company has
earned a gross profit of Rs.2989.34 million before interest and depreciation as
against Rs.1660.90 million last year. After deducting an interest of Rs.503.94
million, providing a sum of Rs.298.95 million towards depreciation, and income
tax provision of Rs.667.31 million, the operations resulted in a net profit of
Rs.1519.14 million as against Rs.1039.04 million in 2005-06, recording a growth
of 46 per cent.
Prior year income tax:
Based on the legal opinion, the Company had claimed deduction U/s 80 IA of the
Income Tax Act, 1961 in respect of some of the projects executed by the Company
upto the Financial Year 2005-06.The claim of the Company is pending before the
various Income Tax Authorities. Consequent to the insertion of Explanation to
Section 80 IA vide the Finance Act, 2007, the Company has reviewed all the
claims made so far and as a measure of prudence, made a provision of Rs.362.53
million relating to earlier years and Rs.259.90 million for the year under
review. However, as the subject matter is subjudice before the appellate
authorities, not withstanding the provisions made in the books of accounts, the
Company will continue to pursue the appeals pending before the various
authorities.
Major Projects:
During the year, the Company along with other consortium/joint venture members
has secured the following major projects:
a. The Consortium comprising of Tishman Speyer of the US, ICICI Venture and the
Company bagged the 400 acre Integrated Township Project at Tellapur near
Hyderabad. The full potential development value of this project is estimated to
be around Rs.85 billion.
b. The Joint Venture comprising of M/s. Maytas Infra Limited, M/s Srei
Infrastructure Finance Limited, and the Company was awarded the Deep Water
All-Weather Port Project at Machilipatnam on BOOT basis. The project cost is
estimated to be around Rs.15 billion.
c. The Joint Venture formed between M/s. Maytas Infra Limited, and the Company
was awarded the Pondicherry-Tindivanam Section Road Project on NH-66 in Tamil
Nadu on BOT basis. The total project cost is estimated to be around Rs.3
billion.
During the year, the Company has in all bagged new orders valued around
Rs.47108 million and had executed projects worth Rs.28384 million. The Order
Book position as on March 31, 2007 stood at Rs.73006 million.
Future outlook:
The future outlook of the construction industry continues to be bright and
challenging. The Company proposes to continue to concentrate its efforts in
executing large infrastructure projects such as roads, flyovers, irrigation
projects, power projects, hydro electric projects, water supply and sewerage
pipelines, electrical transmission lines and other infrastructure projects.
Keeping in view the potential for growth, the Company has set-up separate
divisions in the upcoming areas of Power, Oil and Gas, Metals etc. This will
help the Company in reducing dependence on any particular division.
Subsidiary companies:
A brief description of the activities pertaining to the subsidiaries of the
Company is highlighted hereunder.
a) Indian Subsidiaries:
NCC Infrastructure Holdings Limited, (NCCIHL) was formed as a wholly owned
subsidiary for undertaking investments in BOT road projects and power projects
awarded to the Company and to the joint ventures with which the Company is
associated. The Company has invested Rs.586.73 million in the equity of NCCIHL.
The said subsidiary has during the year under review invested in the equity of
Western UP Tollway Limited and Bangalore Elevated Tollway Limited, which are
executing the road projects awarded by the National Highways Authority of
India.
NCC-Vizag Urban Infrastructure Limited (NCCVUIL) was incorporated as a wholly
owned subsidiary for executing a Modern Township Project at Madhurawada near
Vishakapatnam. The project was awarded by the AP Housing Board, Government of
Andhra Pradesh. The company has invested Rs.476.49 million in the equity of
NCCVUIL.
M/s. OB Infrastructure Limited (OBIL), a subsidiary of the Company, has been
formed for executing the Orai - Bhognipur Section of the National Highway,
awarded by the National Highways Authority of India to M/s. NCC-KMC Consortium.
The Company has invested Rs.467.87 million in the equity of OBIL.
M/s. Patnitop Ropeway and Resorts Limited (PRRL), which is a wholly owned
subsidiary of the Company, was formed during the year for executing the Ropeway
Project at Patnitop, Jammu, awarded by the Patnitop Development Authority. The
Company has invested Rs.0.5 million in the equity of PRRL.
NCC Urban Infrastructure Limited (NCCUIL) which is a subsidiary of the Company
is engaged in the execution of the National Games Housing Complex Project and
other real estate projects in Andhra Pradesh, Tamil Nadu, Karnataka, Goa and
Kerala. As on March 31, 2007, the Company has invested Rs.1200 million in the
Equity of NCCUIL.
As on 31st March, 2007, NCCUIL has twenty one Wholly Owned Indian Subsidiaries
which are engaged in Real Estate activities.
In March 2007, NCCUIL has floated a wholly owned Subsidiary, NCC Urban Lanka
Private Limited, in Colombo, Sri Lanka, for undertaking real estate activities
in the island nation. The first financial year of NCC Urban Lanka Private
Limited will close in March 2008 and, therefore, no accounts of this Company
have been prepared.
Foreign subsidiaries:
Nagarjuna Construction Company Limited & Partners LLC, Sultanate of Oman,
was formed in May 2005 mainly for bidding for and executing projects in the
Sultanate of Oman. The Company has invested Rs.17.01 million in the equity of
NCCL & Partners LLC.
Nagarjuna Construction Company International LLC (NCCILLC), Sultanate of Oman,
was formed as a wholly owned subsidiary during the year under review to be
eligible for projects awarded to local companies. The Company has invested
Rs.112 million in the equity of NCCILLC.
NCC Infrastructure Holdings Mauritius Pte Limited (NCCIHMPL), Mauritius, has
been formed as a wholly owned subsidiary keeping in view the growing
opportunities for investment in global corporate entities engaged in
construction, development of infrastructure projects, power generation
projects, etc. The Company has invested Rs.853.19 million in the equity of
NCCIHMPL. During the year, the NCCIHMPL has acquired the entire equity in M/s
Liquidity Limited based in Mauritius. As a result of the aforesaid acquisition,
M/s Liquidity Limited has become a step down subsidiary of the Company.
The Ministry of Company Affairs, Government of India, has, vide its letter
bearing No.47/181/2007-CL-III dated 24.04.2007, accorded approval under Section
212(8) of the Companies Act, 1956, exempting the Company from attaching the
annual accounts of the subsidiary companies for the year ended March 31,
2007.
FIXED ASSETS
- Land
- Buildings
- Plant and Machinery
- Centering Equipment
- Construction Accessories
- Tools and Equipment
- Office Equipment
- Furniture and Fixtures
- Construction Vehicles
- Office Vehicles
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.94 |
|
UK Pound |
1 |
Rs.85.78 |
|
Euro |
1 |
Rs.68.01 |
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 |
|