MIRA
INFORM REPORT
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Report Date : |
25.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
MALLCOM INDIA LIMITED |
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Registered Office : |
12/1, Lindsay Street, 1st Floor, Kolkatas-700087, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
13.12.1983 |
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Com. Reg. No.: |
037008 |
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CIN No.: [Company
Identification No.] |
L99999WB1983PLC037008 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALM05555E |
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PAN No.: [Permanent
Account No.] |
AABCM7809F |
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Legal Form : |
Subject is a Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturer and Exporter of Personal Protective Equipment like Helmet, Face Masks, Leather and Nitrile Gloves, Jackets and Shoes. |
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 700000 |
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Status : |
Satisfactory |
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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. Directors are reported as experienced and respectable businessmen. Their 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 : |
12/1, Lindsay Street, 1st Floor, Kolkatas-700087, West Bengal, India |
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Tel. No.: |
91-33-22527280 |
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Fax No.: |
91-33-22524959 |
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E-Mail : |
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Factory 1 : |
34B and C, Chandra Nath Roy Road, Kolkata 700046, West Bengal, India |
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Factory 2 : |
Plot 36, Sector 1, FSEZ Falta Special Economic Zone, 24, Parganas,
West Bengal, India |
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Factory 3 : |
Plot 32, Sector 3A, IIE, Roshanabad, Haridwar, Uttarakhand |
DIRECTORS
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Name : |
Mr. Karani D. Mall |
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Designation : |
Chairman |
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Name : |
Mr. Ajay. Kumar Mall |
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Designation : |
Managing Director |
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Name : |
Mr. Jacques Benoil |
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Designation : |
Director |
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Name : |
Mr. Pannalal Mundhra |
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Designation : |
Director |
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Name : |
Mr. Sanjay Kumar Mall |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Ranjeet Kumar |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Personal Protective Equipment like Helmet, Face Masks, Leather and Nitrile Gloves, Jackets and Shoes. |
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Products : |
Helmet, Face Masks, Leather and Nitrile Gloves, Jackets and Shoes. |
GENERAL
INFORMATION
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Bankers : |
Not Available |
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Banking
Relations : |
--- |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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5200000 |
Equity Shares |
Rs. 10/-
each |
Rs. 52.000
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
52.000 |
52.000 |
52.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
124.800 |
108.400 |
98.800 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
176.800 |
160.400 |
150.800 |
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LOAN FUNDS |
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1] Secured Loans |
109.600 |
85.000 |
90.800 |
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2] Unsecured Loans |
0.000 |
0.000 |
44.400 |
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TOTAL BORROWING |
109.600 |
85.000 |
135.200 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
286.400 |
245.400 |
286.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
153.800 |
109.800 |
103.800 |
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Capital work-in-progress |
2.200 |
17.000 |
0.000 |
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INVESTMENT |
15.900 |
10.900 |
10.900 |
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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 |
93.500 |
72.600 |
59.800 |
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Sundry Debtors |
45.900 |
62.100 |
73.400 |
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Cash & Bank Balances |
5.600 |
1.800 |
48.500 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
61.200 |
43.800 |
28.800 |
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Total
Current Assets |
206.200
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180.300 |
210.500 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
73.800 |
57.800 |
28.500 |
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Provisions |
18.600 |
15.100 |
10.800 |
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Total
Current Liabilities |
92.400
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72.900 |
39.300 |
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Net Current Assets |
113.800 |
107.400 |
171.200 |
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MISCELLANEOUS EXPENSES |
0.700 |
0.300 |
0.100 |
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TOTAL |
286.400 |
245.400 |
286.000 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
703.700 |
550.900 |
410.900 |
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Other Income |
42.400 |
34.500 |
30.000 |
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Total Income |
746.100 |
585.400 |
440.900 |
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Profit/(Loss) Before Tax |
25.600
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20.400
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15.800
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Provision for Taxation |
3.300
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4.800
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2.800
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Profit/(Loss) After Tax |
22.300
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15.600
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13.000
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Expenditures : |
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Raw Materials |
530.600 |
436.000 |
322.100 |
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Other Manufacturing Expenses |
112.600 |
81.800 |
60.700 |
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Employee Cost |
9.200 |
06.700 |
5.900 |
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Selling and Administration Expenses |
39.800 |
32.600 |
17.800 |
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Miscellaneous Expenses |
2.800 |
1.900 |
3.900 |
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Interest & Financial Charges |
15.000 |
5.300 |
4.900 |
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Depreciation |
15.200 |
10.800 |
09.200 |
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Stock Adjustment |
[4.700] |
[10.100] |
0.600 |
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Total Expenditure |
720.500 |
565.000 |
425.100 |
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SUMMARISED RESULTS
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PARTICULARS |
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31.03.2007 |
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Type |
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Full Year |
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Sales Turnover |
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885.700 |
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Other Income |
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3.100 |
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Total Income |
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888.800 |
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Total Expenditure |
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832.100 |
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Operating Profit |
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56.700 |
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Interest |
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13.500 |
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Gross Profit |
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43.200 |
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Depreciation |
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16.600 |
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Tax |
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5.200 |
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Reported PAT |
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21.600 |
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Dividend [%] |
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100.000 |
QUARTERLY RESULTS
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PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
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Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
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Sales Turnover |
198.900
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226.300
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324.800
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Other Income |
0.400
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2.800
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0.000
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Total Income |
199.300
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229.100
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324.800
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Total Expenditure |
185.500
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213.800
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316.900
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Operating Profit |
13.800
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15.300
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7.900
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Interest |
4.300
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4.500
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2.100
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Gross Profit |
9.500
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10.800
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5.800
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Depreciation |
4.200
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4.700
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3.500
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Tax |
0.700
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0.200
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0.000
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Reported PAT |
4.600
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5.900
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2.300
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KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
0.58 |
0.71 |
0.59 |
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Long Term Debt-Equity Ratio |
0.00 |
0.43 |
0.59 |
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Current Ratio |
1.07 |
1.98 |
5.32 |
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Fixed Assets |
3.55 |
3.40 |
2.92 |
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Inventory |
8.47 |
8.32 |
8.19 |
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Debtors |
13.03 |
8.13 |
7.20 |
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Interest Cover Ratio |
2.71 |
4.85 |
4.22 |
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Operating Profit Margin(%) |
7.93 |
6.63 |
7.28 |
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Profit Before Interest And Tax
Margin(%) |
5.77 |
4.67 |
5.04 |
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Cash Profit Margin(%) |
5.33 |
4.79 |
5.40 |
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Adjusted Net Profit Margin(%) |
3.17 |
2.83 |
3.16 |
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Return On Capital Employed(%) |
15.30 |
9.68 |
8.83 |
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Return On Net Worth(%) |
13.23 |
10.03 |
8.83 |
LOCAL AGENCY
FURTHER INFORMATION
The product-wise
performance is discussed as under:
Leather Gloves
The total turnover of the leather gloves division of the company stood
at Rs.341.60 million against Rs.283.51 million achieved during the previous
year implying a growth of 20.49%. In quantitative terms, the growth was pegged
at 22.19% with the sales volume rising to 5,991,178 pairs as against 4903222
pairs for the previous year. As already reported to you vide their last report,
the overall capacity of this division of the company has improved significantly
resulting in the increased capacities as well as enhanced production which was
4,323,236 pairs for the year under review as against 25,08,532 pairs for the
last year. The Company has thus been able to meet its requirements on its own,
instead of relying on outside fabricators and vendors, enabling it to have much
better control over production planning and quality requirements.
Garments
During the year under review, this division of the company registered a
growth of 34.67% with sales turnover reaching Rs.233.62 million as against
Rs.173.48 million achieved during the previous year. The sales volume has also
gone up by 20.65% from 7,62,932 pcs to 9,20,509 pcs. Higher in this division
has been possible due to increase in installed capacity with setting up of a
new manufacturing unit at Falta SEZ and better unit value realization with
emphasis on manufacturing and export of high quality products made possible
with state-of-the-art manufacturing facilities.
Seamless Knitted Gloves
The total turnover of this 100% EOU of the Company for the year was
Rs.38.55 million as against Rs.45.07 million for the year 2004-2005. The sales
volume in quantitative terms has also been lower at 249,980 Dz. Pairs against
289,972 Dz. Pairs for the previous year. The above figures however exclude The
production and export of Kevlar Liner Leather gloves, clubbed with the turnover
of leather gloves amounting to Rs.16.69 million. The management however is
aware of the possibility of further enhancement in productivity of this
division and emphasis is being paced on production of value added products
apart from conventional products in order to utilize the capacity in best
possible manner also maximizing the return from this division of the
company.
Nitrile Gloves
This division of the Company, a 100% Export Oriented Unit situated at
Falta SEZ, has seen a major turnaround during the year under review, with its
turnover reaching Rs.48.45 million as against Rs.29.40 million for the year
2004-2005, a growth of 64.80%. With the capacity utilization reaching 48.61%,
the production of this division has almost doubled to 2,13,127 Dz.Pairs from
1,03,629 Dz. Pairs produced during the previous year. Considering the market
response and future plans for this division of the company, the directors are
optimistic of posting a much-improved result in the future.
Industrial Safety Shoes
The latest addition to the company's basket of products in the PPE
range, this division of the company has started commercial production since May
2005. The manufacturing facility of this division with installed capacity of
3,00,000 pairs p.a. is situated at SIDCUL. IIE, Haridwar. The total turnover
for this division of the company for the year under review stood at Rs.13.90
million. Aided by the locational advantage and tax incentives, this division of
the company is concentrating mainly on the domestic market for safety products,
promising huge growth potential. With this world-class product in hand and the
Company's past experience in production and marketing of PPEs as per
international standards, the company is looking forward to creating a
reasonable market share in the near future.
EXPANSION AND FINANCE
During the year under review, the Company continued its expansion drive
with additions in installed capacity and infrastructure for Leather Golves,
Garments and Nitrile Gloves Unit. The Company has also set up an Industrial
Safety Shoes Unit at IIE, Haridwar with installed capacity of 300000 pairs p.a.
which is primarily meant for meeting the domestic demand.
Most of the finance required for the purpose was arranged through
internal accruals.
BUSINESS OPERATIONS AND FUTURE
OUTLOOK
During the year under review the Company successfully forayed into
domestic marketing of its products - mainly industrial Safety Shoes. Based on
the market survey conducted by the Company, the demand for the Industrial
Products in the domestic market is likely to increase manifold with the manufacturing
industry growing in excess of 10% pa. on a consistent basis for the past few
years. Moreover, the growth in the infrastructure and energy sectors, which are
the main consumers of its products, has outperformed the average industry
growth rate heavily. The Company already has the unique advantage of being a
producer of all ranges of Industrial Products required by its customers under a
single umbrella at a most competitive price.
Evaluations and assessment of market conditions have always been Mallcom's
mainstay. With increasing demand for Industrial Products across the globe, the
Company has been gearing up its operations with expansion plans for new
products, addition to existing capacities, product upgradation etc. In its
effort to do so, the Company has made an all-time high investment in Fixed
Assets during the year under review with Gross block going up to Rs.226.37
million from Rs. 170.21 million during the previous year. The efforts made by
the Company have already started bearing fruit - reflected in the performance
shown by the Company or the year.
The directors are optimistic of maintaining the same growth rate in future with
greater contribution from the domestic market in both top-lines and bottomlines
of the company.
RESOURCE UTILISATION
i) Fixed
Assets:
The Gross Fixed Assets (Including Capital work-in-progress) as at 31st
March 2006 were Rs.228.59 million as compared to Rs. 187.25 million in the
previous year.
ii) Current Assets:
The net current Assets as on 31st March, 2006 were Rs.113.77 million as
against Rs.107.24 million in the previous year. Inventory level was at Rs.93.50
million, which was more than the previous year's level of Rs.72.56 million.
Debtors outstanding as on 31st March 2006 was Rs.45.92 million, which was
Rs.16.14 million less than the previous year.
Human Resources / Industrial
Relations
The Company continues to lay emphasis on building and sustaining an
excellent organizational climate based on human performance. Performance
management is the key word for the Company. The Company has a favourable work
environment that motivates performance, customer focus and innovation while
adhering to the highest degree of quality and integrity.
As part of manpower development and training, and with an aim to enhance
efficiency, employees of the Company has been provided with suitable training /
coaching facilities.
Pursuit of proactive policies for industrial relations has ensured a peaceful
and harmonious situation.
MEANS OF COMMUNICATION
The Board takes on record the unaudited (with limited reviews by the
auditors) financial results in the prescribed proforma of the stock exchange
within a month of closure of the quarter and announces forthwith the results to
all the stock exchanges where the company is listed. Further, the highlights of
quarterly audited financial results are also published at least in two
newspapers within 48 hours of the conclusion of the meeting of the Board in
which they are taken on record. This is published at least in one English daily
newspaper circulating in the whole or substantially the whole of India and in
one newspaper published in the language of the region, i.e., Bangia, since the
place of the registered office of the company is Kolkata (West Bengal).
The Annual Audited Accounts of the Company are likewise communicated in the
prescribed proforma to all the Stock Exchanges where the shares of the Company
are listed and are also published in at least one English daily newspaper
circulating in the whole or substantially the whole of India and in one
newspaper published in the language of the region, i.e., Bangia since, the
place of the registered office of the company is Kolkata (West Bengal).
AS PER WEBSITE DETAILS:
PROFILE:
Subject is an Indo-French
Joint Venture and an ISO 9001:2000 certified
enterprise. The company has been engaged in the manufacture, export and
distribution of wide range of Personal Protection Equipment
since 1983.
At
Mallcom they offer you a single source of all the safety equipment needs. As an
integrated manufacturers of PPE, they offer a complete line of
affordable PPEs at no compromise in the quality you have come to count
on for protection.
With their experience, they feel confident they will
always meet or exceed their customers’ needs. Of course, they also take the
greatest pride in their ability to customize to the specifications. Their goal
is to protect the workforce with the finest materials and workmanship available
at affordable prices. The trust and satisfaction of their clients are their
greatest achievements and they do not compromise when it comes to serving to
the best of their ability – making them truly a No-Compromise Company
ACHIEVEMENTS:
A journey to excellence
They embarked on a business journey and
commitment to excellence that never ends. They will supply each customer with
the highest quality product at an affordable price. With this commitment to
excellence, one begins to understand the importance of change and improvement,
to measure and assess, to invest in new systems that guarantee results the
first time, every time; Continuous Improvement. They believe that their quality
system is capable of ensuring that they achieve their goal to improve in all
areas of their business. They are preparing to enter the 21st century with a
company quality system that will keep them focused on their goals of
excellence. For them, this means total customer satisfaction.
Trust you can touch
From industrial garments to hand gloves to
seamless knitted gloves to safety shoes, Mallcom has come to stand for safety.
It is a commitment expressed in each and every one of their 1,100 products. And
confirmed time and time again with dedication and service. A state of the art
design studio helps Mallcom to keep abreast of international standards of
excellence. Creating the phenomenal is the challenge that they undertake in
their chosen field. The reliability of their goods can be felt in each and
every piece.
MANAGEMENT
Ajay Mall, Managing Director
Ajay Mall is the Chief Executive and the Managing Director of Mallcom
India Ltd since its inception. He is responsible for growth and strategic
planning for the entire Group. A professional Chartered Accountant and MBIM
from the UK, Ajay has been instrumental in bringing about technological and
managerial excellence in the Companys operations.
He has varied and rich experience in the field of corporate financing,
Foreign Exchange Management, Marketing, Computerization, and Internal Control
mechanisms etc., for more than two decades.
Sanjay Mall, Executive Director
Sanjay Mall, Executive Director of Mallcom, a distinguished alumnus of
CalcuttaUniversity, is associated with the Company since 1995. He had joined
the Board in 2001.
Sanjay Mall, a great visionary and developer of human resource
potential, has played a key role in instituting efficient production centres
and Quality processes in Mallcom. He is interested in foreseeing the trends and
crucial directions in the deployment of continuous modernization of plants and
machinery for quantum change in organization effectiveness.
Jacques Benoit, Director
Jacques Benoit is a founder Director of Delta Plus SA, France, one of
the largest Personal Protective Distributor in Europe. He is on the board of
the Company since 1996. As the Director General with Delta Plus Group, Jacques
has vast experience in the areas of corporate advisory, joint venture, project
finance, corporate and structured finance, insurance, telecom, mergers &
acquisitions, and disinvestment.
He has also worked very closely on important economic legislations as a
member of several high powered committees. Currently, he is also involved in
setting up state-of-art Special Economic Zone in Weihui province of China for
Sino-French Joint Venture firms.
Panna Lal Mundhra, Director
Panna Lal Mundhra, a distinguished alumnus of Indias premier business
school, ISWBM, Kolkata is in the Board of Mallcom India Ltd., since 1993. As
the Board member, Panna Lal has spearheaded Mallcom’s globalization efforts,
led Mallcom’s IPO in 1995 and built strategic alliances with venture funding
institutions.
He possesses rich experience in the field of Finance and Management
Consultancy, having worked as a part of the core team in several public listed
reputed Indian organizations.
Anupam Das, Director
Mr. Anupam Dass is a Graduate Mechanical Engineer and has served in
large process Industry in the maintenance and production wings for about 40
years. Anupam is in the Board since 2007 and is providing his expertise in
Operations Management.
Anupam will be working closely with the top management team in
establishing best business practices, formulating growth strategies and
managing organizational operational structure in the various production
centres.
NEWS
CRY ASSOCIATION
Mallcom
is associated with CRY (Child Rights and You), an NGO, as a
part of Corporate Social Responsibility (CSR). Every pair of
safety shoes sold in India under Tiger Steel® brand is
providing an opportunity for a better life for a child. We thank the wearers of
Tiger Steel® and the corporates who have selected our brand over many
available in the market and helped us in contributing towards the betterment of
our society.
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. 40.34 |
|
UK Pound |
1 |
Rs. 79.81 |
|
Euro |
1 |
Rs. 62.01 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--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 |
|
52 |
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 |
|