MIRA
INFORM REPORT
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Report Date : |
21.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
GRENTEX AND
COMPANY PRIVATE LIMITED |
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Registered Office : |
G R Woollen Mills Compound, L.B.S. Marg, Post Box No. 9274,
Ghatkopar (West), Mumbai – 400 086, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
28.09.1992 |
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Com. Reg. No.: |
11-68755 |
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CIN No.: [Company
Identification No.] |
U17110MH1992PTC068755 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMG08345B |
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PAN No.: [Permanent
Account No.] |
AAACG2810P |
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Legal Form : |
Private Limited
Liability Company |
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Line of Business : |
Manufacturing and Exporter of Woollen Products |
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 780000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory track. Financial position is satisfactory. Trade relations are fair. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
G R Woollen Mills Compound, L.B.S. Marg, Post Box No.
9274, Ghatkopar (West), Mumbai – 400 086, Maharashtra, India |
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Tel. No.: |
91-22-25116885 /
6 |
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Fax No.: |
91-22-25114842 |
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E-Mail : |
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Factory : |
Plot No. 1623/24, GIDC, Sarigam, District Vapi, Gujarat,
India |
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Sales Depot : |
Amritsar, Punjab, India |
DIRECTORS
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Name : |
Mr. Ravikant Kapur |
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Designation : |
Director |
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Address : |
G. R. Woolen Mills Private Limited Compound, L.B.S. Marg, Ghatkopar (West), Mumbai – 400 086, Maharashtra, India |
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Date of Birth/Age : |
21.04.1952 |
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Qualification : |
B. Com. (Mumbai University) |
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Experience : |
28.09.1992 |
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Other Directorships : |
1. President of Wool Research Association, attached to the Ministry of Textiles 2. Member of Managing Committee of Indian Woollen Mills Federation 3. Currently, Chairman of Wooltexpro (Wool Industry Export Promotion Organisation) |
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Name : |
Mr. Rajeev Rajan Kapur |
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Designation : |
Director |
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Address : |
G. R. Woolen Mills Private Limited Compound, L.B.S. Marg, Ghatkopar, Mumbai – 400 086, Maharashtra, India |
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Date of Birth/Age : |
15.07.1953 |
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Date of Appointment : |
28.09.1992 |
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Name : |
Mr. Jayaprakash Shetty |
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Designation : |
Director |
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Address : |
B-101, Kusum Bharati, Dattapada Road, Borivli (East), Mumbai – 400 066, Maharashtra, India |
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Date of Birth/Age : |
16.08.1948 |
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Date of Appointment : |
18.02.1997 |
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Name : |
Mr. Shyamsunder Kapur |
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Designation : |
Director |
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Address : |
224, Queens Road, Amritsar – 143 001, Punjab, India |
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Date of Birth/Age : |
19.05.1925 |
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Date of Appointment : |
28.09.1992 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of
Shareholders (As on 30.09.2005) :- |
No. of Shares |
|
Mrs. Sharda S. Kapur |
168000 |
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|
140000 |
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Mr. Rajeev R. Kapur |
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Mr. Shashikant S. Kapur |
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Mr. Ravikant S. Kapur |
980000 |
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Mr. Rajeev Rajan Kapur |
980000 |
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Mr. Benu S. Kapur |
308000 |
|
Grentex Yarns Private Limited |
112000 |
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Grentex Wools Private Limited |
112000 |
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Radisson International Limited |
371153 |
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Gokalchand Ratanchand Woollen Mills Private Limited |
558847 |
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Total |
3730000 |
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Category (As on 31.03.2007) :- |
Percentage |
|
Foreign Holdings (Foreign Institutional
Investor (S), Foreign Companie (S), Foreign Financial Institution (S), Non
–Resident Indian(S) Or Overseas Corporate Bodies Or Others |
9.95 |
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Directors or relative of directors |
69.07 |
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Others |
20.98 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Selling of Woollen Products |
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Products : |
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Exports to : |
Benelux, North France, Germany, Switzerland, UK, Turkey
and Iran |
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Imports from : |
Subject imports from New Zealand and West Europe. |
PRODUCTION
STATUS (As on 31.03.2005) :-
|
Particulars |
|
Unit |
Installed Capacity |
Actual Production |
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Wool Tops |
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MTPA |
4200 |
2178125.25 |
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Noil/Waste |
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MTPA |
60 |
NA |
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Worsted Yarn |
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MTPA |
1000 |
NA |
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Non-Worsted Yarn |
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MTPA |
2000 |
NA |
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Dyed Wool |
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MTPA |
600 |
NA |
GENERAL
INFORMATION
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No. of Employees : |
About 400 |
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Bankers : |
State Bank of India, Overseas Branch, World Trade Centre, Cuffe Parade, Mumbai – 400005, Maharashtra, India |
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Banking Relations : |
Good |
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Auditors : |
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Name : |
P D Kunte and
Company Chartered
Accountants |
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Address : |
205/206, Turf
Estate, Shakti Mill Lane, Dr. E Moses Roads, Mahalaxmi West, Mumbai – 400
011, Maharashtra, India |
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Parent Company : |
Gokalchand Rattanchand Woollen Mills Private Limited - It was started as a worsted wool mill in the year 1954 in Mumbai. This mill has the capacity to produce worsted/semi worsted yarn in pure wool and wool/nylon approximately 120/150 tons per month depending on count. Subject was awarded the following export Awards/Certificates : Trophy for outstanding export performance (worsted yarn) during : - 1973-74 1974-75 1975-76 1976-77 1977-78 Certificate of Merit for achieving export during 1998-99 |
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Associates |
· Grentex Yarns Private Limited · Grentex Wools Private Limited · Radisson International Limited |
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Memberships : |
· Wool & Woollen Export Promotion Council |
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Subsidiaries : |
· Grentex Spinners Private Limited (CIN :-U17120MH1992PTC066075) |
CAPITAL STRUCTURE
(As on
31.03.2007):-
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs. 10/-
each |
Rs. 50.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3730000 |
Equity Shares |
Rs. 10/-
each |
Rs.37.300
millions |
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 |
37.300 |
37.300 |
37.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
118.081 |
103.189 |
109.190 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
155.381 |
140.489 |
146.490 |
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LOAN FUNDS |
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1] Secured Loans |
7.864 |
32.928 |
5.659 |
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2] Unsecured Loans |
45.774 |
25.273 |
35.974 |
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TOTAL BORROWING |
53.638 |
58.201 |
41.633 |
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DEFERRED TAX LIABILITIES |
8.190 |
8.970 |
8.227 |
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TOTAL |
217.209 |
207.660 |
196.350 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
89.896 |
93.997 |
91.763 |
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Capital work-in-progress |
16.549 |
9.844 |
1.021 |
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INVESTMENT |
0.125 |
0.125 |
6.428 |
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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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|
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Inventories |
103.089
|
62.576 |
124.893 |
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Sundry Debtors |
52.980
|
52.510 |
8.418 |
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Cash & Bank Balances |
31.686
|
24.043 |
23.939 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
26.394
|
29.153 |
19.949 |
|
Total
Current Assets |
214.149
|
168.282 |
177.199 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
102.468
|
63.806 |
79.443 |
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Provisions |
1.042
|
0.782 |
0.618 |
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Total
Current Liabilities |
103.510
|
64.588 |
80.061 |
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Net Current Assets |
110.639
|
103.694 |
97.138 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
217.209 |
207.660 |
196.350 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
|
31.03.2005 |
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Sales Turnover [including other income] |
|
|
394.005 |
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Profit/(Loss)
Before Tax |
|
|
26.293 |
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Provision for
Taxation |
|
|
11.913 |
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Profit/(Loss)
After Tax |
|
|
14.380 |
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Export Value |
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|
237.243 |
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Import Value |
|
|
260.127 |
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Total Expenditure |
|
|
367.712 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
NA
|
NA |
3.64 |
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Net Profit Margin (PBT/Sales) |
(%) |
NA
|
NA |
6.67 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
NA
|
NA |
10.37 |
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Return on Investment (ROI) (PBT/Networth) |
|
NA
|
NA |
0.17 |
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Debt Equity Ratio (Total Liability/Networth) |
|
1.01
|
0.87 |
0.83 |
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Current Ratio (Current Asset/Current Liability) |
|
2.07
|
2.61 |
2.21 |
AGENCY FURTHER
INFORMATION
HISTORY
Subject was incorporated on 28.09.1992 at Mumbai in Maharashtra having Company Registration Number 68755.
Subject was originally formed as a partnership concern in the year 1980 and subsequently registered as a private limited liability company for expansion of its capacity with a view to concentrate on exports.
Grentex is
privately owned family managed company incorporated in 1982, manufacturing is
located near Mumbai, India.
The parent company
Gokalchand Rattanchand Woollen Mills celebrated 50 years in 2003/04 and engaged
in manufacture of high quality worsted/knitting/hosiery yarns. During the
1970's the mill was awarded trophies for highest exports performance.
Plants are located
in Mumbai, Maharashtra & Gujarat.
Subject is the
leading wool yarn exporter from India for soft furnishings & upholstery,
with virtually all the production being exported worldwide.
The company was the first 'Fernmark'
Licensee in India and a brand partner spinner of high quality wool yarn out of
New Zealand Wool for first few years.
Products
Subject is a fully equipped yarn-spinning mill that offers a wide range of products. Subject is centrally located geographically to the best wools of the world and we offer all three types of spinning systems.
Product Range :-
Wool Tops
· Ecru
· Bleached
· Blended
Semi-worsted/Worsted Yarns
· Ecru
· Heathers/Berbers
· Solid Shades
· Marls
· Blends-with synthetic fibers
· Hard Twist/Frieze
Woollen Carded yarns
· Ecru
· Heathers/Berbers
· Solid Shades
· Marls
· Blends-with synthetic fibers
Hard Twist/Frieze
Infrastructure
Head Office along with the semi-worsted/worsted plant is in a suburb of Mumbai; the financial capital of India and the scouring/dyeing/top making/woolen spinning is in Gujarat, which is about 100 miles north of Mumbai. Subject is few kilometers distance from the port/airport.
· All the raw material is imported from around the globe
· All the machinery is imported mainly from West Europe
· All the spare parts/consumables are imported
· Subject has decades of technical expertise for maintaining a high standard of the products.
Subject has been awarded Trophies and Certificates by Wool & Woollens Export Promotion Council, Ministry of Textiles for high export performance and growth in exports, which are as under :
v Certificate of Merit for second highest export performance in Woollen Worsted Yarn during 1987-88
v Certificate of Merit for the third highest export performance in Woollen Worsted Yarn during 1988-89
v Certificate of Merit for growth in exports in the Woollen / Worsted Yarn sector during 1989-90
v Certificate of Merit for achieving more than 33% increase in export performance in woollen / worsted / flax yarn during 1993-94
v Certificate of Merit for achieving more than 33% increase in export performance in woollen / worsted / flax yarn during 1994-95
v Certificate of Merit for 100% growth in exports with a minimum of Rs. 10 millions in woollen / worsted / flax yarn during 1995-96
v Award for the third highest export performance in yarn during 1998-99
v Award for the third highest export performance in yarn during 1999-2000
v Certificate of Merit for achieving more than 25% increase in export performance of yarn during 1999-2000
v Certificate of Merit for 50% growth in exports with a minimum of Rs. 10 millions in yarn during 1999-2000
FIXED ASSETS:-
· Land
· Factory Buildings
· Vehicles
· Furniture and Fixtures
· Plant and Machinery
Working:-
Company is making
all possible efforts to improve its exports and also increase its Wool Combing
job work.
As a measure, for increasing the production capacity, the company has substantially increased the production capacity and should be good for the company in near future.
FORM 8:-
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Name of the company |
GRENTEX AND COMPANY PRIVATE LIMITED |
|
Presented By |
STATE BANK OF INDIA, OVERSEAS BRANCH,
MUMBAI – 400005 |
|
1) Date and description of instrument creating the change |
1] Agreement of
loan for overall limit 2] Agreement of
hypothecation of goods and assets 3] Letter regarding
grant of individual limit within the overall limit All dated
28.08.1995 creating a single charge. |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs 145.200
Millions [DCC Rs 25.000
Millions, Guarantee Rs 10.000 Millions, T/L –II – Rs 4.700 Millions, T/L –
III Rs 31.000 Millions and T/L – IV Rs 12.000 Millions] |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Present and
future stocks of raw-materials, stock in process and finished goods at
Mumbai, Sarigam, Amritsar and Bhdohi and present and future book-debts,
movable properties and machineries. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Interest – As
determined by the bank from time to time Margin – as
prescribed by the bank from time to time |
|
5) Name and Address and description of the person entitled to the charge. |
State Bank of
India, Overseas Branch World Trade Centre,
Cuffer Parade, Mumbai – 400005 |
|
6) Date and brief description of instrument modifying the charge |
Letter regarding
grant of individual limits within the overall limit dated 10.03.2005 |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
1] By
modification dated 28.08.1995 the charge further secured by equitable
mortgage created on plot no. 1623,1624,1627 and 1628 in Sarigam Industrial
Area bearing survey no 457/P and 459/P in Village Gujarat, admeasuring 8400
Sq. meters 2] By
modification dated 24.11.1999 amount of charge reduced from Rs 145.200
Millions to Rs 70.000 Millions 3] By
modification dated 18.03.2004, additional credit facilities of Rs 35.000
Millions grabted. Hence amount of charge increased from Rs 70.000 Millions to
Rs 105.000 millions [EPC Rs 25.000 Millions export bills Rs 15.000 Millions
with inter se flexibility dcc with EPC and export bills Rs 5.000 Millions ,
L/C Rs 60.000 Millions, B/B Rs 5.000 Millions] 4] Now, by this
modification dated 10.03.2005, additional credit facilities of Rs 33.000
Millions granted. Hence amount of charge increased from 105.000 Millions to Rs
138.000 Millions. [EPC and export bills Rs 40.000 Millions , DCC [within EPC
and Export Bills]Rs 5.000 Millions, stand by line of credit Rs 23.000
Millions, L/C Rs 70.000 Millions and B/B Rs 5.000 Millions with full inter se
flexibility with L/C limits) Margin : In case
of EPC 10% on FOB, 15% on C&F and 20% on CIF, export bills nil, in case
of DCC 25% on RM/SIP/FBs, 30% on receivables. In case of L/C 5%, B/B upto 3
years 10% and above 3 years 100% |
|
Name of the company |
GRENTEX AND COMPANY PRIVATE LIMITED |
|
Presented By |
STATE BANK OF INDIA, OVERSEAS BRANCH,
MUMBAI – 400005 |
|
1) Date and description of instrument creating the change |
1] Agreement of
loan for overall limit 2] Agreement of
hypothecation of goods and assets 3] Letter
regarding grant of individual limit within the overall limit All dated
28.08.1995 creating a single charge. |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 145.200
millions (DCC –Rs. 25.000
millions L/C – Rs. 6.200
millions Guarantee – Rs.
10.000 millions T/L –II – Rs.
4.700 millions T/L –III- Rs.
31.000 millions T/L –IV – Rs.
12.000 millions ) |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Present and
future stocks of raw-materials, stock in process and finished goods at
Bombay, Sarigam, Amritsar and Bhdohi and present and future book-debts,
movable properties and machineries. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Interest – As
determined by the bank from time to time Margin – As prescribed by the bank from time
to time |
|
5) Name and Address and description of the person entitled to the charge. |
State Bank of
India, Overseas Branch World Trade
Centre, Cuffe Parade, Mumbai – 400005 |
|
6) Date and brief description of instrument modifying the charge |
Letter regarding
grant of individual limits within the overall limit dated 10.03.2005 |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
1] By modification
dated 28.08.1995 the charge further secured by equitable mortgage created on
plot no. 1623,1624,1627 and 1628 in Sarigam Industrial Area bearing survey no
457/P and 459/P in Village Karanjgam, Taluka Umbergaon, district Valsad,
Gujarat, adm. 8400 Sq.mtrs. 2] By
modification dated 24.11.1999 amount of charge reduced from Rs 145.200
Millions to Rs 70.000 Millions 3] By
modification dated 18.03.2004, additional credit facilities of Rs 35.000
Millions granted. Hence amount of charge increased from Rs 70.000 Millions to
Rs 105.000 millions [EPC Rs 25.000 Millions export bills Rs 15.000 Millions
with inter se flexibility DCC with EPC and export bills Rs 5.000 Millions ,
L/C Rs 60.000 Millions, B/B Rs 5.000 Millions] 4] Now, by this
modification dated 10.03.2005, additional credit facilities of Rs 33.000
Millions granted. Hence amount of charge increased from 105.000 Millions to
Rs 138.000 Millions. [EPC and export bills Rs 40.000 Millions, DCC [within
EPC and Export Bills] Rs 5.000 Millions, stand by line of credit Rs 23.000
Millions, L/C Rs 70.000 Millions and B/B Rs 5.000 Millions with full inter se
flexibility with L/C limits) Margin: In case
of EPC 10% on FOB, 15% on C&F and 20% on CIF, export bills nil, in case
of DCC 25% on RM/SIP/FBs, 30% on receivables. In case of L/C 5%, B/B upto 3
years 10% and above 3 years 100% |
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.42.97 |
|
UK Pound |
1 |
Rs.84.75 |
|
Euro |
1 |
Rs.66.72 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
46 |
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 |
|