MIRA
INFORM REPORT
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Report Date : |
12.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
INDO TECH TRANSFORMERS LIMITED |
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Registered Office : |
DP
: 36, SIDCO Industrial Estate, Thirumazhisai, Chennai 602 107, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
16.01.1992 |
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Com. Reg. No.: |
18-22011 |
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CIN No.: [Company
Identification No.] |
L29113TN1992PLC022011 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEI00681C |
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PAN No.: [Permanent
Account No.] |
AAACI5775P |
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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 : |
Manufacturer of Transformers. |
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 4500000 |
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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 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
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Registered Office : |
DP : 36, SIDCO Industrial Estate, Thirumazhisai, Chennai
602 107, Tamilnadu, India |
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Tel. No.: |
91 - 44 - 26811569 / 26811570 |
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Fax No.: |
91 - 44 - 26811568 |
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E-Mail : |
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Website : |
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Factory 1 : |
DP : 14-19, SIDCO Industrial Estate, Thirumazhisai,
Chennai 602 107, Tamilnadu, India |
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Tel. No.: |
91 - 44 - 26811572 / 26811772 |
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Fax No.: |
91 - 44 - 26811672 |
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E-Mail : |
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Factory 2 : |
31,VGP Salai, Saidapet, Chennai 600 015 |
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Tel. No.: |
91 - 44 - 24850309 / 24850164 |
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Fax No.: |
91 - 44 - 24851767 |
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E-Mail : |
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Factory 3 : |
VII/222, Koyyamarakkad, Kanjikode, Palakkad - 678 621 |
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Factory 4 : |
Next To Premier Cotton Mills,
Kanjikode West, Palakkad - 678 623 |
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Tel. No.: |
91 - 491 - 2566252 / 2566078 |
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Fax No.: |
91 - 491 - 2566105 |
DIRECTORS
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Name : |
Mr. P.E. Subramaniam |
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Designation : |
Chairman & Managing Director |
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Name : |
Mr. P.S. Jagdish |
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Designation : |
Executive Director |
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Name : |
Mr. P.S. Shekar |
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Designation : |
Director - Operations |
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Name : |
Mr. A.P. Muthuswami |
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Designation : |
Director |
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Name : |
Mr. K. Kannan |
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Designation : |
Director |
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Name : |
Mr. P. Velayudhan Pillai |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. V. Balasubramanian |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
[As on 31.03.2007]
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters and
Persons acting in concert |
5771625 |
54.35 |
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Mutual Funds |
537114 |
5.06 |
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Banks |
2316 |
0.02 |
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Foreign
Institutional Investors |
1407318 |
13.25 |
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Private
Corporate Bodies |
1160862 |
10.93 |
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Public |
1697214 |
15.98 |
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NRI's |
31679 |
0.30 |
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Clearing Members |
11872 |
0.11 |
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Total |
10620000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Transformers. |
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Products : |
Ø Power
Transformers Ø Distribution
Transformers Ø Dry
Type Transformers Ø
Mobile
Transformers Ø Special Transformers Ø Furnace
and other special Transformers |
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Exports : |
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Countries: |
Ø
Moblesource Industries Inc., Ontario Ø
Virginia Transformers Corporation, Roanoke Ø
Nigeria Engineering Works Limited, Nigeria Ø
Power And Distribution Transformers Limited,
Uk Ø
Al - Fanar Electrical Systems, Riyadh Ø
Omer Suliman For Trade, Sudancore Coil Assy. Ø
Transtech Handles Gmbh, Germany Ø
Kamalakshmi Furnitures, Andaman Ø
Crown Agents, Singapore ( For Terai Town
Water Supply Project Damak, Nepal ) Ø
Oriental Electric Construction Private
Limited Ø
Fewa Trading Private Limited, Nepal Ø
Diversified Packaging / Nigeria Indy.
Limited, Lagos Ø
Lanka Lion P. Ltd., Srilanka |
PRODUCTION STATUS
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Installed
Capacity |
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3350000 KVA per
annum |
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Actual
Production |
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2298965 KVA |
GENERAL INFORMATION
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Suppliers : |
Ø Raj Lubricants
(M) Private Limited Ø On Load Gears Ø Nexus Translam
Industries Ø National
Lamination Industries Ø Manojkrishna
Engineering works Ø Mace Engineers |
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No. of Employees : |
About 500 |
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Bankers : |
·
State Bank of India ·
Bank of Baroda ·
Standard Chartered Bank ·
Citibank N.A. ·
Indian Bank |
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Facilities : |
As on 31.03.2007
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
G. Balu Associates Chartered Accountants |
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Associates/Subsidiaries : |
Ø Vigneswara
Electricals Limited Ø Sivasakthi
Engineering and Fabricators |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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15300000 |
Equity Shares |
Rs. 10/- each |
Rs. 153.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10620000 |
Equity Shares |
Rs. 10/- each |
Rs. 106.200
Millions |
(i) Of the above 687740 Equity Shares were allotted as fully paid-up for
consideration other than Cash.
(ii) Of the above 4597950 Equity Shares were allotted as fully paid by
way of Bonus Shares.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
106.200 |
106.200 |
28.169 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
806.489 |
607.477 |
211.101 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
912.689 |
713.677 |
239.270 |
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LOAN FUNDS |
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1] Secured Loans |
45.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
19.680 |
20.267 |
21.235 |
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TOTAL BORROWING |
64.680 |
20.267 |
21.235 |
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DEFERRED TAX LIABILITIES |
19.726 |
16.173 |
18.126 |
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TOTAL |
997.095 |
750.117 |
278.631 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
382.607 |
134.409 |
106.327 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
220.192 |
113.470 |
0.586 |
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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 |
0.000
|
124.761
|
102.836 |
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Sundry Debtors |
0.000
|
226.169
|
194.922 |
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Cash & Bank Balances |
0.000
|
479.532
|
105.044 |
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Other Current Assets |
886.804
|
0.000
|
0.000 |
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Loans & Advances |
249.450
|
137.989
|
53.017 |
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Total
Current Assets |
1136.254
|
968.451 |
455.819 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
451.792
|
345.661
|
238.969 |
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Provisions |
290.166
|
120.552
|
45.132 |
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Total
Current Liabilities |
741.958
|
466.213 |
284.101 |
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Net Current Assets |
394.296
|
502.238
|
171.718 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
997.095 |
750.117 |
278.631 |
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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 |
1553.696 |
927.204 |
674.520 |
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Other Income |
32.245 |
7.980 |
11.643 |
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Total Income |
1585.941 |
935.184 |
686.163 |
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Profit/(Loss) Before Tax |
396.397 |
165.032 |
107.876 |
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Provision for Taxation |
134.273 |
54.416 |
28.185 |
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Profit/(Loss) After Tax |
262.124 |
110.616 |
79.691 |
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Earnings in Foreign Currency : |
0.885 |
NA |
9.000 |
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Total Imports |
32.871 |
NA |
4.397 |
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Expenditures : |
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Raw
Materials |
994.428 |
631.100
|
474.100
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Excise
Duty |
0.000 |
141.900
|
103.200
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Power
& Fuel Cost |
16.706 |
5.700
|
5.100
|
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Other
Manufacturing Expenses |
11.826 |
7.100
|
6.200
|
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Employee
Cost |
36.835 |
25.200
|
23.800
|
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Selling
and Administration Expenses |
63.447 |
101.900
|
81.100
|
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Miscellaneous
Expenses |
40.243 |
12.600
|
6.800
|
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Interest
& Financial Charges |
14.680 |
7.400
|
6.500
|
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Depreciation
|
11.379 |
8.500
|
8.600 |
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Total Expenditure |
1189.544 |
941.400 |
715.400 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
31.03.2008 |
|
Type |
1st
Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
|
Sales Turnover |
393.800
|
513.700
|
520.900
|
470.200
|
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Other Income |
8.700
|
9.200
|
9.600
|
8.200
|
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Total Income |
402.500
|
522.900
|
530.500
|
478.400
|
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Total Expenditure |
295.300
|
365.900
|
344.000
|
324.500
|
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Operating Profit |
107.200
|
157.000
|
186.500
|
153.900
|
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Interest |
01.200
|
1.500
|
1.200
|
2.000
|
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Gross Profit |
106.000
|
155.500
|
185.300
|
151.900
|
|
Depreciation |
3.500
|
3.700
|
3.700
|
6.700
|
|
Tax |
33.500
|
49.400
|
59.400
|
48.700
|
|
Reported PAT |
69.000
|
102.400
|
122.200
|
96.500
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.05 |
0.04 |
0.12 |
|
Long Term Debt-Equity Ratio |
0.05 |
0.04 |
0.11 |
|
Current Ratio |
1.69 |
1.82 |
1.51 |
|
Fixed Assets |
6.81 |
6.44 |
5.16 |
|
Inventory |
15.33 |
9.80 |
10.28 |
|
Debtors |
5.76 |
5.30 |
4.62 |
|
Interest Cover Ratio |
27.97 |
23.30 |
17.60 |
|
Operating Profit Margin(%) |
22.48 |
16.22 |
15.15 |
|
Profit Before Interest And Tax Margin(%) |
21.88 |
15.46 |
14.09 |
|
Cash Profit Margin(%) |
14.55 |
10.68 |
10.88 |
|
Adjusted Net Profit Margin(%) |
13.95 |
9.92 |
9.82 |
|
Return On Capital Employed(%) |
48.04 |
34.67 |
50.60 |
|
Return On Net Worth(%) |
32.23 |
23.21 |
39.33 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Indo Tech Transformers Ltd was incorporated in 1992. The
company started its business as a partnership firm under name of M/s Indo Tech
Electric Company. The company as commenced manufacture of small distribution
transformer at Saidapet and Palakkad in 1976. Today the company manufactures
power and distribution transformers upto 100 MVA/220 KV. The company has merged
Indo Tech Electric Company Ltd with itself with effect from 1st April 2003.
The company manufactures special transformers which are customer & Industry
specific. The company has three manufacturing facilites two facilites at
Chennai, TamilNadu and one at Palakkad, Kerala. The installed capacity of these
plants is 2450 MVA per annum.
The company made an Initial Public Offer of 3945130 equity shares of Rs.10/-
each for cash at price of Rs.130/- per equity share aggregating to Rs.512866900
in February 2006.
The objects of the issue are to relocate and modernization of Saidapet plant
into a new Distribution Transformer Plant of 750 MVA/Annum at Thirumazhisai,
setting up a new power transformer plant with a capacity of 2400 MVA/Annum
including 220 KV class of transformers, Setting up of Dry Type Transformer
plant at Thirumazhisai (120 units per annum) and to meet working capital requirements.
FIXED ASSETS
Ø
Land
Ø
Buildings
Ø
Plant
& Machinery
Ø
Testing
Equipments
Ø
Material
Handing Equipments
Ø
Tools,
Jigs & Fixtures
Ø
Electrical
Fittings & Equipments
Ø
Air
conditioners & Refrigerators
Ø
Wind
Electric Generator
Ø
Furniture,
Fixtures & Fittings
Ø
Office
Equipments
Ø
Vehicles
Ø
Technical
Know - how
SECURED LOANS
a) Working capital
facilities from Bank of Baroda, State Bank of India, Standard Chartered Bank
and Citi Bank NA are primarily secured by hypothecation of inventories,book debts
and are collaterally secured by second charge on paripassu basis on Plant &
Machinery , Buildings and 9.16 acres Land at Kancheepuram and further secured
by paripassu charge on other Land, Factory Buildings and Plant and Machinery of
the Company .
b) Term Loan from
Standard Chartered Bank is secured by first charge on Plant & Machinery,
Buildings and 9.16 acres Land at Kancheepuram.
PERFORMANCE
The Company has
performed beyond expectations once again. Growth has been maintained in the
local markets while the Company is exploring possibilities in the overseas
markets. Their investments in manpower resources, technology and seeking new
business areas continue to be the growth engines. The 2006-07 annual results
demonstrate the Company's ability to identify, nurture and accelerate growth
opportunities resulting in a strong platform for future growth
The Company's
total revenue for the year 2006-07 was Rs.1911.567 Millions representing a
growth of 70.18%. (Rs.1123.255 Millions for the previous year ended March 31,
2006). The Net Profit after provision for taxation for the year ended March 31,
2007 was Rs.262.124 Millions (Rs.110.616 Millions for the previous year ended
March 31, 2006) signifying a healthy growth of 136.97%. The earning per share
and cash earning per share for the year under review was Rs.24.00 and Rs.25.08
respectively.
The Company's net
worth continues to be strong and stood at Rs.912.689 Millions as on March 31,
2007 (Rs.713.677 Millions in March 31, 2006), reflecting the intrinsic strength
of the Company. The book value per share is Rs.85.94 signifying consistent
enhancement in shareholders value.
BUSINESS
OPERATIONS OVERVIEW AND OUTLOOK
The year 2007-08
looks optimistic as far as business from State Electricity Boards, Power
Projects, Public Utilities, Industrial Customers and Exports are concerned. The
importance given by the Government for infrastructure projects and huge
investments coming up in the Power Sector is expected to generate huge demand
for the products of the Company.
The Power Ministry
intends to implement various projects including the ultra mega power projects
and these will result in larger requirement of the Company's products.
The Company
continues to get regular orders from State Electricity Boards, other Public
Utilities, leading Turnkey Electrical Contractors as well as a range of
Industrial Customers. The above will result in extending the Customer base of
the Company and will enable the Company to achieve its projected growth in the
years to come.
MANAGEMENT'S
DISCUSSION AND ANALYSIS
INDUSTRY
The initiative
taken by the Government to restructure the power industry and the focus on
Accelerated Power Development 6 Reform Programme (APDRP) by the Ministry of
Power has resulted in significant developments and growth of the transformer
industry in India. The Government's ambitious plan for capacity addition of
78,000 MW during the current Plan period could witness a big boost in demand
for transformers. The transformer industry in general is going through a boom
phase, The Company put in an excellent performance and gross sales increased by
68.52% to Rs.1879.300 Millions in 2006-07 from Rs.1115.200 Millions [2005-06].
The net sales increased by 67.56% to Rs.1553.700 Millions in 2006-07 from
Rs.927.200 Millions [2005- 06]. The net profit increased by 136.97% to
Rs.262.100 Millions in 2006-07 from Rs.110.600 Millions [2005-06]. The
Company's product mix, strategies and control over costs has resulted in higher
realization per MVA viz. Rs.0.676 Millions/ MVA in 2006-07 as against Rs.0.503
Millions/ MVA [2005-06].
OPPORTUNITIES,
THREATS AND RISKS
The Company is a
prominent player in the transformer industry in South India and has currently
expanded its manufacturing capacity from 2450 MVA to 3350 MVA. With the commissioning
of the OVDT and Kancheepuram Plant, the Company will have an installed capacity
of 7450 MVA.
Their results of
operations could potentially be affected by the following factors:
* Their ability to successfully commission the Expansion Project at the
scheduled time;
* Their ability to manufacture the transformers as per the requirement
of their clients;
* Their ability to continuously operate and maintain their manufacturing
facilities optimally;
* Their ability to continue to source raw material at competitive rates
for their existing and new transformer manufacturing plants;
* Their ability to
manufacture transformers using the latest technologies in terms of modern
Materials, components and processes.
There has been a
spate of expansions by various companies in the transformer industry for
manufacturing different types of transformers. Hence there is a possibility of
lower margins in view of the competition. The increase in cost of inputs like
CRGO steel, copper, bushings etc. is a cause for concern.
BUSINESS OVERVIEW
AND OUTLOOK
The Government's
initiative to restructure the power sector has given a substantial boost to the
transformer industry. The importance attached to the Power Sector by the
Government and the mega power and infrastructure projects is expected to
generate substantial demand for the Company's products.
The Company had
embarked on an Expansion Plan and three Projects were taken up for
implementation, namely:
1. Relocation and
Modernization of Saidapet plant into a new Distribution Transformer Plant of
750 MVA /annum at Thirumazhisai
2. Setting up of
Dry Type Transformer Plant at Thirumazhisai.
3. Setting up a
new Power Transformer Plant with a Capacity of 4000 MVA/ Annum up to and
Including 400 KV class of transformers at Illuppapattu Village, Kancheepuram.
Production is in
full swing at the Distribution Transformer Plant. The Dry Type Transformer
Plant is expected to commence trial production in June 2007.
The work of
setting up a new Power Transformer Plant with a Capacity of 4000 MVA/ Annum up
to and including 400 KV class of transformers at Illuppapattu Village,
Kancheepuram is progressing satisfactorily and is expected to be completed by
October, 2007.
The present order book
of the Company stands at Rs. 1720.000 Millions.
The Company has
started receiving export enquiries and is confident of meeting the requirement
of various range of its transformers for its export customers in the near
future.
AS PER WEBSITE
Indo Tech
Transformers Limited, an ISO 9001 Certified company, is the flagship of the Rs.
1000 million Indo Tech Group. It was established in 1976 and has since grown to
be a prominent player in the Indian electrical Industry for Power &
Distribution transformers. The Group has diversified into various related areas
of business, manufacturing Electrical, Electronic & computer hardware
related products, pre - stressed cement casting products in addition to various
special application transformers, mobile sub-station transformers & sub -
stations. Indo Tech has a list of over 3150 satisfied customers. Its strength
is its commitment to quality and excellent customer service.
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.42.89 |
|
UK Pound |
1 |
Rs.83.80 |
|
Euro |
1 |
Rs.66.45 |
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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--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/normal. |
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 |
|