MIRA
INFORM REPORT
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Report Date : |
23.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
DELTON CABLES LIMITED |
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Registered Office : |
Delton House, 4801 Bharat Ram Road, 24 Darya Gunj, New Delhi – 110002 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
26.09.1964 |
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Com. Reg. No.: |
004255 |
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CIN No.: [Company
Identification No.] |
L31300DL1964PLC004255 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELD00125G DELD06408D |
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PAN No.: [Permanent
Account No.] |
AAAFD2403L AAACD2482Q |
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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 : |
Manufacturing and Marketing of Wires and Cables, PVC Compound and Jelly Filled Telecommunication Cables. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 773768 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track.
Trade relations 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 : |
Delton House, 4801 Bharat Ram Road, 24 Darya Gunj, New Delhi – 110002,
India |
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Tel. No.: |
91-11-23273905/ 08 |
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Fax No.: |
91-11-23280375/ 23272178 / 6835550 |
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Telex |
031-63357 DCCL-IN |
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Cable |
DELWIRE |
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E-Mail : |
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Website : |
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Factory : |
Faridabad
17/4 Mathura Road, Faridabad, Haryana, India Tel. No. 91-129-288 222 / 288225/ 27 Fax No. 91-129-288 220/ 2223998 Email: dclfbd@airtelbroadband.in New
Delhi
24 Shivaji Marg, New Delhi, India Tel. No. 91-11-593 1280 / 543 6753/ 41427377 Fax No.: 91-11-25928037 Email: dclngr@deltoncables.com Dharuhera
70th Milestone, Delhi-Jaipur Highway, Village – Malpura, Tehsil – Dharuhera, District – Rewari, Haryana, India Tel. No. 91-1283-2229 / 2296 Fax No. 91-1283-2294 Email: dcldhr@deltoncables.com Noida C-22/23 Sector – 57, Noida – 201301, Uttar Pradesh, India Tel No.: 91-120-4248987 Fax No.: 91-120-4237435 Email: dclnoida@deltoncables.com |
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Branch Offices : |
Mumbai
83-B, Dr. Annie Besant Road, Near Worli Naka, Mumbai – 400018, India Tel. No. 91-22-493 5178 / 493 6501 Fax No. 91-22-493 6501 Telex: 011-75767 DLTN-IN Cable: DELCAB Email: dclbby@mtnl.net.in Kolkata
Flat No. 1, 6th Floor, `Shantiniketan’, 8 Camac Street, Kolkat – 700017, West Bengal, India Tel. No. 91-33-242 4388 Fax No. 91-33-242 4153 Telex: 021-2351 DCCL-IN Cable: DELTONCO Email: dclcal@cal2.vsnl.net.in Chennai
59 Montieh Road, 1st Floor, Asha Mansion, Egmore, Chennai – 600008, Tamilnadu, India Tel. No. 91-44-858 7702 Fax No. 91-44-855 4930 E-mail madras@delton.wiprobt.ems.vsnl.net.in Bangalore
3rd Floor, Maruthi Mansion, 19/7 Cunningham Road, Bangalore – 560052, Karnataka, India Tel. No. 91-80-226 3934 Fax No. 91-80-225 3933 Telex: 0845-2478 DCCL-IN Cable: MYCABWIRE Email: dclblr@vsnl.com |
DIRECTORS
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Name : |
Mr. Ram. Kumar Gupta |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
81 years |
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Qualification : |
Technical Knowledge and Practical Experience |
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Experience : |
61 years |
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Date of Joining : |
16.08.1989 |
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Previous Employment
: |
Industrialist |
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Name : |
Mr. V. K. Gupta |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
61 years |
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Qualification : |
Technical Knowledge & Practical Experience |
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Experience : |
44 years |
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Date of Joining : |
01.09.1969 |
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Previous Employment
: |
Industrialist |
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Name : |
Mr. Vijay Kumar Goel |
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Designation : |
Director |
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Name : |
Mr. B. B. Chadha |
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Designation : |
Director |
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Name : |
Mr. M. P. Mehrotra |
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Designation : |
Director |
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Name : |
Mr. S. S. Malhotra |
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Designation : |
Director |
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Name : |
Mr. A. Karati |
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Designation : |
Director |
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Name : |
Mr. Ravinder Narain |
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Designation : |
Director |
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Name : |
Mr. L. B. Rungta |
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Designation : |
Director |
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Name : |
Mr. A. B. Gersappe |
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Designation : |
Director |
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Name : |
Mr. Anil Kumar Jain |
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Designation : |
Whole-time Director |
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Name : |
Mr. Vivek Gupta |
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Designation : |
Joint Managing Director |
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Date of Birth/Age : |
33 years |
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Qualification : |
B.Com. (Hons.) |
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Experience : |
12 years |
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Date of Joining : |
10.06.1989 |
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Previous Employment
: |
Industrialist |
KEY EXECUTIVES
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Name : |
Mr. B. K. Sharma |
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Designation : |
Company Secretary |
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Name : |
Mr. Rajesh Gupta |
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Designation : |
Company Secreatry |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
Not Available
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of Wires and Cables, PVC Compound and Jelly Filled Telecommunication Cables. |
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Products : |
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Exports : |
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Products : |
· Co-axial Cables · PIJF · SWA PVC/PVC House Wiring · Switch Board Cables · Instrumentation
Cables |
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Countries : |
· Cyprus · Sri Lanka · Sultanate · Oman · U.K |
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Imports : |
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Products : |
· Copper · Polythylene |
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Countries : |
· Belgium · Germany · Japan · U.K. · U.S.A |
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Terms : |
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Selling : |
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Purchasing : |
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PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Wires and Cables |
MCM |
3003 |
304 |
GENERAL
INFORMATION
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No. of Employees : |
1200 |
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Bankers : |
· Canara Bank · State Bank of Bikaner and Jaipur · The Benares State Bank Limited · Punjab National Bank · Centurion Bank of Punjab |
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Facilities : |
Note From
Banks Cash Credit and Bill Discounting Secured by pari passu charge
under consortium arrangement by way of first charge on whole of movable
properties, excluding such movable which has been permitted by the banks and
including inventories and book debts of the company and equitable mortgage
created on the properties at 17/4, Mathura Road, Faridabad and personal
guarantees of the Directors. - Bill Discounting : Repayable within one year Rs.3.472
Millions (Previous Year Rs. 18.781 Millions) - Short Term Loan :- Repayable within one year Rs.10.800
Millions (Previous Year : Rs. Nil) Vehicle Loans are secured against hypothecation of
respective vehicles, repayable within one year Rs.1.827 Millions (Previous
Year Rs.0.481 Millions)
Note 1) Sales Tax Deferment loans are secured against personal guarantees of the Directors and are interest free in nature. 2) Repayable within one year Rs.13.939 Millions(Previous year Rs.17.239 Millions) |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. R. Dinodia and Company Chartered Accountants |
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Address : |
C-37 Connaught Place, New Delhi – 110001, India |
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Memberships : |
Confederation of Indian Industry |
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Associates/Subsidiaries : |
·
Vishranti
Trading Enterprises Limited ·
Saneh
Industrial Investments Limited ·
B
& M Trading and Investment Company Limited ·
Senor
Microwave Pvt. Limited ·
Ram
Kumar Gupta and Sons Limited ·
Delton
Cable Company · Srimati Shanti Devi Charitable
Trust |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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5400000 |
Equity Shares |
Rs.10/- each |
Rs.54.000 Millions |
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40000 |
10% Cumulative Convertible Preference Shares |
Rs.100/- each |
Rs.4.000 Millions |
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20000 |
9.8% Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.2.000 Millions |
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Total |
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Rs.60.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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2880000 |
Equity Shares |
Rs.10/- each |
Rs.28.800
Millions |
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Note:
The above includes 399800 Equity Shares of
Rs.10/- each allotted as fully paid Bonus Shares by capitalization of General
Reserve
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
28.800 |
28.800 |
28.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
164.642 |
130.580 |
98.100 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
193.442 |
159.380 |
126.900 |
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LOAN FUNDS |
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1] Secured Loans |
234.679 |
189.112 |
151.900 |
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2] Unsecured Loans |
13.939 |
17.239 |
24.700 |
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TOTAL BORROWING |
248.618 |
206.351 |
176.600 |
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DEFERRED TAX LIABILITIES |
10.412 |
10.482 |
0.000 |
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TOTAL |
452.472 |
376.213 |
303.500 |
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APPLICATION OF FUNDS |
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|
103.313 |
94.602 |
96.100 |
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FIXED ASSETS [Net Block] |
0.000 |
0.000 |
0.800 |
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Capital work-in-progress |
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|
0.089 |
0.089 |
0.100 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
218.780
|
235.042 |
184.900 |
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Sundry Debtors |
355.943
|
267.659 |
186.100 |
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Cash & Bank Balances |
27.895
|
35.933 |
13.300 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
58.243
|
37.585 |
36.700 |
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Total
Current Assets |
660.861
|
576.219 |
421.000 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
272.512
|
278.452 |
208.100 |
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Provisions |
39.279
|
16.245 |
6.400 |
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Total
Current Liabilities |
311.791
|
294.697 |
214.500 |
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Net Current Assets |
349.070
|
281.522 |
206.500 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
452.472 |
376.213 |
303.500 |
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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 |
1179.908 |
1007.624 |
789.100 |
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Other Income |
12.112 |
8.523 |
29.500 |
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Total Income |
1192.020 |
1016.147 |
818.600 |
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Profit/(Loss) Before Tax |
57.295 |
52.643 |
13.700 |
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Provision for Taxation |
23.007 |
19.013 |
6.400 |
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Profit/(Loss) After Tax |
34.288 |
33.630 |
7.300 |
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Export Value |
26.884 |
20.935 |
NA |
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Imports : |
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Raw Materials |
141.908 |
182.986 |
NA |
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Capital Goods |
2.092 |
0.000 |
NA |
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Others |
0.000 |
0.000 |
NA |
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Total Imports |
144.000 |
182.986 |
NA |
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Expenditures : |
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Manufacturing Expenses |
1077.645 |
922.029 |
541.900 |
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Administrative Expenses |
0.000 |
0.000 |
112.000 |
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Raw Material Consumed |
0.000 |
0.000 |
18.900 |
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Purchases made for re-sale |
0.000 |
0.000 |
19.900 |
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Consumption of stores and spares parts |
0.000 |
0.000 |
0.000 |
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Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
0.000 |
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Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
0.000 |
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Managerial Remuneration |
0.000 |
0.000 |
39.600 |
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Payment to Auditors |
0.000 |
0.000 |
26.500 |
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Interest |
0.000 |
0.000 |
0.000 |
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Insurance Expenses |
46.852 |
31.944 |
11.100 |
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Power & Fuel |
0.000 |
0.000 |
25.900 |
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Depreciation & Amortization |
10.228 |
9.532 |
9.100 |
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Other Expenditure |
0.000 |
0.000 |
0.000 |
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Total Expenditure |
1134.725 |
963.505 |
804.900 |
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QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
|
Sales
Turnover |
262.500 |
292.400 |
444.200 |
|
Other
Income |
0.900 |
0.800 |
0.400 |
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Total
Income |
263.400 |
293.200 |
444.600 |
|
Total
Expenditure |
240.200 |
261.900 |
410.500 |
|
Operating
Profit |
23.200 |
31.300 |
34.100 |
|
Interest |
10.300 |
12.700 |
16.200 |
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Gross
Profit |
12.900 |
18.600 |
17.900 |
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Depreciation |
2.600 |
2.900 |
2.700 |
|
Tax |
4.400 |
6.000 |
6.400 |
|
Reported
PAT |
6.500 |
10.500 |
8.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
|
1.44
|
1.55 |
1.70 |
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Long
Term Debt-Equity Ratio |
|
0.16
|
0.18 |
0.35 |
|
Current
Ratio |
|
1.20
|
1.16 |
1.18 |
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TURNOVER
RATIOS |
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|
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Fixed
Assets |
|
5.70
|
5.12 |
3.58 |
|
Inventory |
|
5.97
|
5.52 |
4.30 |
|
Debtors |
|
4.35
|
5.10 |
5.50 |
|
Interest
Cover Ratio |
|
2.15
|
2.36 |
1.53 |
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Operating
Profit Margin (%) |
|
8.62
|
7.62 |
6.17 |
|
Profit
Before Interest And Tax Margin (%) |
|
7.86
|
6.80 |
5.02 |
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Cash
Profit Margin (%) |
|
3.28
|
3.31 |
2.08 |
|
Adjusted
Net Profit Margin (%) |
|
2.53
|
2.49 |
0.93 |
|
Return
On Capital Employed (%) |
|
27.70
|
24.99 |
14.27 |
|
Return
On Net Worth (%) |
|
21.78
|
23.32 |
7.09 |
LOCAL AGENCY
FURTHER INFORMATION
History:
The company was incorporated on 25th September, 1964 at New Delhi having Company Registration Number 4255 as a Private Limited Company under the name & style of “Delta Cable Industries Private Limited”.
The company was converted into a Public Limited Company pursuant to a Special Resolution passed at an Extraordinary General Meeting held on 30th June, 1981 and obtained the certificate of change of name dated 11th August, 1982 deleting the word “Private” from the name of the company. It was promoted by R. K. Gupta, manufacturer of wires and cables, power cables, radio high frequency cables and PVC compound.
In 1981-82, the company completed modernisation programme at its Faridabad factory at an estimated cost of Rs. 7.4 millions. ICICI sanctioned a term loan of Rs. 3.5 millions for this programme and the balance was met from internal resources. Early in 1983-84, manufacture of jelly filled cables was taken up in the existing plant by the addition of some balancing equipment.
During 1988-89, the company implemented a project to manufacture jelly filled cables at Dharuhera with an installed capacity of 500 million core metres per annum, at an estimated cost of Rs. 220 millions. Manufacture of jelly filled cables in the new unit commenced during 1989-90.
During 1987-88, the company was granted an industrial licence for the manufacture of 50,000 lines of Electronic Private Automatic Branch Exchanges (EPANX) and allied equipments per annum in the State of Haryana. The project was undertaken in a joint venture company “Delta Systems Private Limited” co-promoted by the company along with ATEA, Belgium and Siemens Limited. The estimated cost of the project was Rs. 165 millions of which a sum of Rs. 40 millions was to be raised by way of equity capital. The Company, ATEA and Siemens Limited were to participate to the extent of 25%, 15% and 49% respectively in the equity capital of the joint venture. The balance 11% was to be raised from other associates.
The company had developed Switchboard Cables and Polythene Insulated Jelly Filled Cables during 2000-2001.
Performance
The Company has given a good performance. The turnover of the company has increased by 17% from Rs. 1158.057 Millions in the last Financial Year to Rs.1355.407 Millions in the current Financial Year. The Company has also attained Profit before Tax of Rs.57.183 Millions in the Current Financial Year as compared to Profit before Tax of Rs.52.534 Millions in the previous Financial Year and Net Profit of Rs. 34.288 Millions as compared to Net Profit of Rs.33.630 Millions in the previous Financial Year.
Future Outlook
The company has set up a new Division for the manufacture of Switchgears at Noida (U.R). Company has started production with MCBs upto 63 Amp. and plan to market the product by September/October, 2007 after obtaining ISI approval. . It is planned to add DB's, Isolators MCB changeovers by March, 08. This will enhance the value of the brand 'Delton' and add to the turnover and profitability of the company. The Company plans to expand in the segment of power cables and RF cables.
|
Contingent Liabilities not provided for |
31.03.2007 |
|
Guarantee issued by
Banks |
173.003 |
|
Letter of Credit |
192.954 |
|
Sales Tax sureties
given for third parties |
0.080 |
|
Counter Guarantee given
to Directors |
461.373 |
|
|
|
|
Total |
827.411 |
|
Claims against the company not acknowledged as debt |
31.03.2007 |
|
Sales Tax |
10.767 |
|
Civil Suits |
20.822 |
|
|
|
|
Total |
31.589 |
The Lease rental paid (Noida unit) of amounting to Rs.0.345 Million
have been charged under the head "Pre-operative Expenditures".
Fixed Assets:
· Goodwill and Trade Marks
· Freehold Land
· Building
· Plant and Machineries
· Computers
· Furniture and Fittings
· Vehicles
Profile:
Subject is an ISO 9001:2000 certified companies committed to
Quality and Customer Satisfaction. Subject offers Total Telecom Solution
Products from Conventional Telecom Cables to Microwave Accessories and others.
Company provides competence in Cable technology – covering measurement,
control, communication and power distribution applications, as used in
exploration, refining or gas processing sites, petrochemical, chemical, power
generation and similar applications.
Established in the year 1948 with a foresighted vision, a
pioneering spirit, innovative approach, indigenously developed technology, the
expertise of a highly motivated and professional team, excellent infrastructure
facilities.
Subject has won recognition and merit certificates from the
Government of India for its outstanding contribution and export performance.
Company is a prime supplier to the Power, Telecommunication, Railways, Steel
and Mining sectors in India and has also firmly established itself in the
International market. It is perfectly in tune with the freedom spirit of India;
for economic growth, liberalization and globalization by opening up for new
Joint Ventures/Marketing tie-ups, to face the challenges of the 21st century.
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.43.15 |
|
UK Pound |
1 |
Rs.85.08 |
|
Euro |
1 |
Rs.68.10 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
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 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
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 |
|