MIRA
INFORM REPORT
|
Report Date : |
29.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
STAR WIRE INDIA LIMITED |
|
|
|
|
Registered Office : |
35, Link Road, 2nd
Floor, Lajpat Nagar - III, New Delhi – 110 024 |
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Country : |
India |
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|
Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
04.07.1963 |
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Com. Reg. No.: |
55 - 117600 |
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CIN No.: [Company Identification No.] |
U27109DL1963PLC117600 / U99999WB1963PLC025852 |
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TAN No.: [Tax Deduction & Collection Account No.] |
CALT00276D |
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PAN No.: [Permanent Account No.] |
AAECS1124Q |
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Legal Form : |
A Closely held Public Limited Liability Company. |
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Line of Business : |
Manufacturing of all kind of Ferrous and Non-Ferrous
Metals Alloys. |
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 3407000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having
satisfactory track. Directors are reported as experienced and respectable
businessmen. Trade relations are reported as fair. Business is active. Payments
are usually correct and as per commitments. The company can be considered normal for business dealings
at usual trade terms and conditions. |
LOCATIONS
|
Registered Office
/ Head Office : |
35, Link Road, Lajpat Nagar, New
Delhi-110024 (India) |
|
Tel. No.: |
91-11-29832650/ 29832654 |
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Fax No.: |
91-11-29832542 |
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E-Mail : |
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Area
: |
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Factory : |
21/4, Mathura Road,
Ballabgarh, Haryana 121004 (India) |
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Tel. No.: |
91-129-2242263/ 2241263/ 2241264/ 2240762 / 2240763/ 2246762/
2246763, 2248262/ 2300462/ 2213365/ 2246463 / 5062143/ 5062144/ 5062145/
5062146/ 5061751/ 5061752 / 5061753 |
|
Fax No.: |
91-129-2241265 |
DIRECTORS
|
Name : |
Mr. Sitaram Gupta |
|
Designation : |
Director |
|
Address : |
A-11, Nizamuddin West, New
Delhi - 110 013, INDIA |
|
Date of Birth/Age : |
15.11.1931 |
|
Date of Appointment : |
16.07.1990 |
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|
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|
Name : |
Mr. Mohindar Kumar Gupta |
|
Designation : |
Managing Director |
|
Address : |
A-11, Nizamuddin West, New Delhi
- 110 013, INDIA |
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Date of Birth/Age : |
01.12.1958 |
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Date of Appointment : |
16.03.1981 |
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|
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|
Name : |
Ms. Rekha Gupta |
|
Designation : |
Director |
|
Address : |
A-11, Nizamuddin West, New
Delhi - 110 013, INDIA |
|
Date of Birth/Age : |
23.10.1963 |
|
Date of Appointment : |
10.11.1993 |
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|
|
|
Name : |
Ms. Vijaya Kumari Gupta |
|
Designation : |
Director |
|
Address : |
A-11, Nizamuddin West, New
Delhi - 110 013, INDIA |
|
Date of Birth/Age : |
15.09.1935 |
|
Date of Appointment : |
18.09.1991 |
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|
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|
Name : |
Ms. Sapna Singal |
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Designation : |
Director |
|
Address : |
2 J and K Extension, Laxmi Nagar, Delhi – 110092, India |
|
Date of Birth/Age : |
09.07.1979 |
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Date of Appointment : |
19.12.2001 |
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Name : |
Mr. Surender Kumar Gupta |
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Designation : |
Additional Director |
|
Address : |
A-11, Nizamuddin West, New
Delhi - 110 013, INDIA |
|
Date of Birth/Age : |
21.01.1957 |
|
Date of Appointment : |
29.03.2007 |
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|
|
|
Name : |
Mr. Samir Gupta |
|
Designation : |
Director |
|
Address : |
A-11, Nizamuddin West, New
Delhi - 110 013, INDIA |
|
Date of Birth/Age : |
01.10.1983 |
|
Date of Appointment : |
01.04.2006 |
|
|
|
|
Name : |
Mr. S K Goel |
|
Designation : |
Director |
KEY
EXECUTIVES
|
Engine
Valve Steels Department : |
Mr. Gurdeep Singh
(Department Head) |
|
Steel
Castings Department : |
Mr V.K. Gupta
(Department Head) |
|
Defence
and Armor Department : |
Mr. Y. Bahl (Department
Head) |
|
Special
Steel Department : |
Mr. V.K. Gupta (Department
Head) |
|
Forging
Qulaity Ingot andTool and Die Steel Department : |
Mr P.N. Singh (Department Head) |
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|
|
|
Name
: |
Ms. Sapna Singal |
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Designation
: |
Company Secretary |
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|
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Name
: |
Ms. Sapna Tomar |
|
Designation
: |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 29.09.2005
|
Names of Shareholders |
|
No.
of Shares |
|
Supreme Commercial Enterprises Limited |
|
23375 |
|
Juhi Leasing and Finance Limited |
|
21700 |
|
Surrendra and Mohindra Brothers Private Limited |
|
37500 |
|
Sarswati Charitable Trust |
|
27000 |
|
Sita Ram Mohinder Kumar HUF |
|
16000 |
|
Sita Ram Surender Kumar HUF |
|
16000 |
|
Shree Radha Krishna Charitable Trust |
|
46500 |
|
Brijeshwari Dharmarth Sansthan |
|
28500 |
|
Mahawar Charitable Trust |
|
43600 |
|
Mahawar Dharmarth Sansthan |
|
28500 |
|
Surrendra Ispat Private Limited |
|
50000 |
|
Mahawar Associates Private Limited |
|
53950 |
As on 31.03.2007
|
Equity Share
Breakup |
|
|
|
Category |
|
Percentage
of Holding |
|
Bodies corporate |
|
32.72 |
|
Directors or relatives of directors |
|
67.28 |
|
Total
|
|
100.00 |
BUSINESS
DETAILS
|
Line of Business : |
Manufacturing of all kind of Ferrous and Non-Ferrous Metals
Alloys. |
|
|
|
|
Imports : |
|
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Countries
: |
v Germany
v U.K. |
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|
|
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Terms : |
|
|
Selling
: |
Against Contract, L/C, D/P or Credit (30 days) terms |
|
|
|
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Purchasing
: |
L/C, D/P or Credit (30 days) terms |
GENERAL
INFORMATION
|
Customers : |
Overseas
Customers v
Covendisa, Venezuela v
Ata Muhammad Enterprises, Pakistan v
Shekat Taulidi Yadaki Motors, Iran v
Technostar S.r.l., Italy v
Paradowsey AMP S.J., Poland v
Edival S. A., Argentina v
Ivam S.r.l., Italy v
Supar Supap Ve Parca Sanayi Ticaret A.S., Turkey v
Federal Mogul Valves (Pty) Limited, South Africa v
Supsan Motor, Turka v
Japan v
Beslin, Germany v
Gertiz, Germany v
Canada v
Enpar Limited, UK Valve
Steel Customers v
Rane Engine Valves Limited, Chennai and Medchal v
Kar Mobile Limited, Bangalore and Tumkur v
Shriram Pistons and Rings Limited, Ghaziabad v
Kirloskar Oil Engines Limited, Nashik v
Duro Valves India (Private) Limited, Aurangabad v
Vikram Valves and General Industries, Rajkot v
Automotive Valves, Kad v
TRW Special
Steel Customers v Motor
Industries Company Limited, Bangalore and Jaipur v Shriram
Fuel Injection Industries, Hyderbad v Atlas
Copco India Limited, Pune High
Spped Steel Customers v Miranda
Tools, Ankleshwar v Forbes
Gohak Limited, Mumbai v I.T.M.
(Zenith Limited) Mumbai Forging
Quality Ingot Customers v Bay
Forge Limited v Bharat
Forge Limited v Rajkumar
Forge Limited v Choudhary
Hammer v Echjay
Forging v Pushpaman
Forgings v Achme
Forgings Forged
Products Customers v Manugraph
India Limited v The
Printer House Limited v Triveni
Engg, Mysore v Flender v Eleon |
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|
|
|
No. of Employees : |
180 |
|
|
|
|
Bankers : |
|
|
|
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Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name
: |
P D Mittal and Company Chartered Accountants |
|
Address
: |
70, Daryaganj, New Delhi - 110 002, India |
|
|
|
|
Associates/Subsidiaries : |
v Surendra
Steel Poting Mills v Ellora
Steel Limited v Mohinder
Udyog Private Limited v Eagle
Investments Limited v Supreme
Commercial Enterprises Limited |
CAPITAL
STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
14,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 140.000 Millions |
|
6,000,000 |
Preference Shares |
Rs. 10/- each |
Rs. 60.000 Millions |
|
|
Total
|
|
Rs.
200.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9,799,750 |
Equity Shares |
Rs. 10/- each |
Rs.
97.998 Millions |
|
2,540,500 |
Preference Shares |
Rs. 10/- each |
Rs.
25.405 Millions |
|
|
Total
|
|
Rs. 123.403 Millions |
FINANCIAL
DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
123.400 |
123.400 |
110.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
558.000 |
519.100 |
298.500 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
681.400 |
642.500 |
408.500 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
527.000 |
333.500 |
336.300 |
|
|
2] Unsecured Loans |
36.900 |
18.100 |
143.500 |
|
|
TOTAL
BORROWING |
563.900 |
351.600 |
479.800 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1245.300 |
994.100 |
888.300 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
380.200 |
314.000 |
287.400 |
|
|
Capital work-in-progress |
74.000 |
16.100 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.200 |
0.200 |
0.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
430.600
|
354.600
|
385.700 |
|
|
Sundry Debtors |
397.400
|
390.800
|
321.900 |
|
|
Cash & Bank Balances |
58.300
|
55.700
|
53.100 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
59.600
|
67.000
|
64.300 |
|
Total Current Assets |
945.900
|
868.100
|
825.000 |
|
|
Less :
CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
155.300
|
198.100
|
224.500 |
|
|
Provisions |
0.000
|
6.600
|
0.000 |
|
Total Current Liabilities |
155.300
|
204.700
|
224.500 |
|
|
Net Current Assets |
790.600
|
663.400
|
600.500 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.300 |
0.400 |
0.200 |
|
|
|
|
|
|
|
|
TOTAL |
1245.300 |
994.100 |
888.300 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
2963.000 |
1978.100 |
1690.200 |
|
|
Other Income |
32.100 |
25.300 |
21.400 |
|
|
Total Income |
2995.100 |
2003.400 |
1711.600 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
79.500 |
44.400 |
30.800 |
|
|
Provision for Taxation |
28.300 |
17.400 |
10.800 |
|
|
Profit/(Loss) After Tax |
51.200 |
27.000 |
20.000 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
419.700 |
345.800 |
358.300 |
|
|
Administrative Expenses |
102.900 |
57.300 |
58.900 |
|
|
Raw Material Consumed |
1841.900 |
1217.300 |
1098.400 |
|
|
Excise Duty |
259.100 |
35.400 |
14.800 |
|
|
(Increase)/ Decrease in Stock |
(48.400) |
2.000 |
(95.000) |
|
|
Salaries, Wages, Bonus, etc. |
85.100 |
77.400 |
60.200 |
|
|
Interest |
36.500 |
28.300 |
20.600 |
|
|
Power & Fuel |
175.900 |
162.300 |
140.700 |
|
|
Depreciation & Amortization |
39.400 |
31.000 |
20.400 |
|
|
Other Expenditure |
3.500 |
2.200 |
3.500 |
|
Total Expenditure |
2915.600 |
1959.000 |
1680.800 |
|
KEY
RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
0.69 |
0.79 |
1.09 |
|
Long
Term Debt-Equity Ratio |
0.66 |
0.49 |
0.68 |
|
Current
Ratio |
4.56 |
2.28 |
2.13 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
5.28 |
4.12 |
4.20 |
|
Inventory |
7.55 |
5.34 |
5.21 |
|
Debtors |
7.52 |
5.55 |
6.23 |
|
Interest
Cover Ratio |
3.18 |
2.57 |
2.50 |
|
Operating
Profit Margin(%) |
5.24 |
5.24 |
4.25 |
|
Profit
Before Interest And Tax Margin(%) |
3.91 |
3.68 |
3.04 |
|
Cash
Profit Margin(%) |
3.06 |
2.93 |
2.39 |
|
Adjusted
Net Profit Margin(%) |
1.73 |
1.36 |
1.18 |
|
Return
On Capital Employed(%) |
10.36 |
7.73 |
6.69 |
|
Return
On Net Worth(%) |
7.89 |
5.07 |
5.43 |
LOCAL
AGENCY FURTHER INFORMATION
Form 8
|
Corporate
identity number of the company |
U27109DL1963PLC117600 |
|
Name of the
company |
STAR WIRE [INDIA] LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
A – 11, Nizamuddin West, New Delhi – 110012, India |
|
This form is for |
Modification of charge |
|
Type of charge |
|
|
Particular of
charge holder |
State Bank of
India SIB Branch, 65
Neelam Bata Road, NIT, Faridabad – 121001, Haryana, India |
|
Amount secured by
the charge |
Rs. 5.650
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Interest will be
charged at which rate as may be determined by the bank from time to time.
Extent and operation of the charge being full. |
|
Description of
the property charged indicating whether it is a charged on |
|
|
Particulars of
the property charged |
Equitable
mortgage of factory land and building situated at Plot No. 21/4, Delhi Mathura
Road, Ballabgarh measuring 107 Kanals, 4 Biswanis [54361 sq. mtrs.] |
|
Charge
identification number of the charge to be modified |
80007937 |
|
Brief description
of the instrument modifying the charge under section 135 |
|
|
Date of
instrument Modifying the charge |
05.07.2006 |
|
Particulars of
the present modification |
Present limit
enhanced to Rs. 8.154 Millions |
History
Subject was incorporated on 4th July, 1963 at
Kolkata in West Bengal having Company Registration Number 25852.
The Registered Office of the company has been shifted from A
– 11, Nizamuddin West, New Delhi – 110012 to the present address w.e.f.
01.06.2007.
Future
Outlook
The Company's major thrust in the current financial year is to increase
production meant for export of Engine Valve Steel and Castings for which some
orders are in hand, The Company is also looking to add another two new import
substitute items in the kitty to maintain present turnover of indigenous
sales.
Fixed Assets
- Office Building
- Factory Building
- Furniture and Fixture
- Vehicles
- Cycle
- Truck and Tanker
- Plant and Machinery
- Electric Installation
- Office Equipments
- Computer
- Railway Siding
- Rolling Mill Rolls
As Per Website Details
Overview
Subject is one of the
leading Mini Steel Plant is engaged in the manufacturing of Alloy Steels,
Stainless Steel and Special Steels for diversified engineering application in
shape of castings, forging and rolled products. Plant is fully equipped with
modern equipments and testing facilities which have created confidence and
ability for manufacturing various sophisticated grades of steel conforming to
international and National standards.
It has its own research and development centre to facilitate the manufacturing
activities and also catering to engineering and manufacturing industries for
failure analysis and other analytical activities.
The plant is situated in Ballabgarh, about 37 KMs from Delhi - Capital of India
on Main Mathura Road (NH No. 2). The location is at easy approach by Air, Rail and
Road.
Message From
Chairman
A journey that began with a dream, one that withstood the
challenge of time. Even as I pen my thoughts, the world is changing at a
rapidly and technology is becoming obsolete quicker than it is conceived. Hence
it is imperative to stay in tune with the changing times, which is why they at
Starwire believe in keeping abreast of the latest trends and the ever-changing
needs of the customer.
This feat is accomplished by technological innovation and effective teamwork.
Needless to say it is teamwork that separates the winners from the losers and
the formidable team - customers, shareholders, employees, suppliers, business
partners and their families is the driving force for behind the phenomenal
growth.
And just as the values that condition them selves, the core values imbibed
fiercely in the team have not only helped shape the destiny, but also have
reposed the customers' faith in us. Because it is not just about creating the
world's best Defence Products- it is about building a relationship that is
dependable and trustworthy.
Strengths
They are dedicated to achieving excellence in the work. Starwire
maintains the highest ethical and professional standards and strives to stay on
the leading edge in technology, in an ever-changing environment. While the
greatest strength is the ability to understand the client goals, the success is
very much attributed to strong teamwork, continuous R and D and the dedication
and commitment of each and every member of the Starwire family to deliver
unsurpassed quality and reliable products & services to the total
satisfaction of all the customers.
They believe that the historical success and future prospects are directly
related to a combination of strengths, including the following :
v
It has its own power generating plant which is capable for running the
plant independently.
v
Equipped with sophisticated R and D equipments.
v
Highly experienced dedicated work force.
v
Multi product set up.
v
Advantageous location of plant.
These extensive resources
combined with the dedication to the highest professional standards enables us
to support a wide range of the clients' business needs.
CMT
REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various
sources including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its
beneficial owners, controlling shareholders or senior officers as terrorist or
terrorist organization or whom notice had been received that all financial
transactions involving their assets have been blocked or convicted, found
guilty or against whom a judgement or order had been entered in a proceedings
for violating money-laundering, anti-corruption or bribery or international
economic or anti-terrorism sanction laws or whose assets were seized, blocked,
frozen or ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of
the subject are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or
conviction registered against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation
with Government :
No
record exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
The
market survey revealed that the amount of compensation sought by the subject is
fair and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report
:
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
The Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN
EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.
42.30 |
|
UK Pound |
1 |
Rs.
84.03 |
|
Euro |
1 |
Rs.
66.42 |
SCORE
& RATING EXPLANATIONS
|
SCORE
FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
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, they have no basis
upon which to recommend credit dealings |
No
Rating |
|