MIRA
INFORM REPORT
|
Report Date : |
28.05.2008 |
IDENTIFICATION
DETAILS
|
Name : |
GITS FOOD PRODUCTS PRIVATE LIMITED |
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Registered Office : |
Gits House,
Hadapsar Industrial Estate, Hadapsar, Pune– 411013, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
27.07.1994 |
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Com. Reg. No.: |
11-79891 |
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CIN No.: [Company
Identification No.] |
U15443MH1994PTC079891 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMG04022E |
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Legal Form : |
Private Limited
Liability Company |
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Line of Business : |
Manufacturers of
instant food products |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED
CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded
healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 185000 |
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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. Directors are reported as
experienced and respectable businessmen. Their trade relations are fair. Business
is active. Payments are correct and as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
Gits House,
Hadapsar Industrial Estate, Hadapsar, Pune– 411013, Maharashtra, India |
|
Tel. No.: |
91-20-26870008 |
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Fax No.: |
91-20-26875993 |
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E-mail: |
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Location: |
Owned |
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Corporate Office
: |
404/405, Balarama, Bandra-Kurla
Complex, Bandra (E), Mumbai -400051, India |
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Tel. No.: |
91-22-26592525,26592281-86 |
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Fax No.: |
91-22-26592626 |
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E-Mail : |
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Website : |
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Factory 1 : |
Gits House, Hadapsar Industrial Estate, Pune, 411013 Maharashtra,
India |
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Tel. No.: |
91-020-6870008/9 |
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Fax No.: |
91-20-6875993 |
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Factory 2 : |
317/318 Sahajpur-Nandur Road, Taluka-Daund, Dist. - Pune, India |
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Tel. No.: |
91-20-816710/754 |
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Fax No.: |
91-20-816831 |
DIRECTORS
|
Name : |
Akbarali
Khanmohamad Tejani |
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Designation : |
Director |
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Address : |
A/3, Vrindavan Park
Company Housing Society Limited, Narangi Bagh Path, Currimbhoy Road, off.
Boat Club Road, Pune – 411001, Maharashtra, India |
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Date of Appointment : |
27.07.1994 |
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|
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Name : |
Mukhtar Akbarali
Tejani |
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Designation : |
Director |
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Address : |
A/6, Doongursee
Park Co Operative Housing Society Limited, 22, Bund Garden Road, Pune –
411001, |
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Date of Appointment : |
27.07.1994 |
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|
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Name : |
Raju Harji Gilani
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Designation : |
Director |
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Address : |
502, Panju Mahal B.J.
Road, Bandra (W), Mumbai – 400050, Maharashtra, India |
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Date of Appointment : |
27.07.1994 |
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|
Name : |
Sahil Raju Gilani
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Designation : |
Director |
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Address : |
502/04, Panju Mahal
B. J. Road, Bandra (W), Mumbai – 400050, Maharashtra, India |
|
Date of Appointment : |
01.07.2003 |
MAJOR SHAREHOLDERS
[As on
26.09.2005]
|
Names of
Shareholders |
|
No. of Shares |
|
Akbarali
Khanmohamad Tejani |
|
18600 |
|
Mukhtar Akbarali
Tejani |
|
18600 |
|
Raju Harji Gilani
|
|
37200 |
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|
Equity Share Break-up [As on 31.03.2007] |
|
Percentage of Holding |
|
Directors or
relatives of the Directors |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of
instant food products |
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Exports to : |
USA, Canada, UK,
Germany, Singapore, UAE, Muscat, Bahrain, New Zealand,
Asia, Middle East, Europe and Australia. |
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Terms : |
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Selling : |
L/C, Cash and
Credit [ 30 days] |
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Purchasing : |
Credit [30 days] |
PRODUCTION
STATUS
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Gulab Jamun |
No. of Packets |
|
6743324 |
|
Idli |
No. of Packets |
|
2353177 |
|
Dosai |
No. of Packets |
|
1219304 |
|
Vadai |
No. of Packets |
|
481699 |
|
Other Instate Products |
No. of Packets |
|
4900124 |
|
Other Instate Products |
Tons. |
|
2700 |
GENERAL INFORMATION
|
Suppliers : |
v
Gits
International Food v
Mandovi
Foods |
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|
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|
Customers : |
v
Convenience
Food Private Limited v
Clover Foods
Private Limited v
Aayaat UK
Enterprises |
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|
|
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Bankers : |
v
HDFC Bank
Limited v
Jammu and
Kashmir Bank Limited v
Corporation
Bank of India v
United bank
of India – Mumbai v
United Bank Nasik
Private Limited v
State Bank
of India |
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No. of Employees : |
350 |
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Banking Relations : |
Satisfactory |
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Auditors : |
Shroff and
Company Chartered
Accountants |
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Address: |
503-Delux Court,
5th Floor, Raobhadur Bhambhandekar Marg, Mumbai 400050,
Maharashtra, India |
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|
|
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 30.000
Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
744000 |
Equity
Shares |
Rs. 10/- each |
Rs. 7.440 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
7.440 |
7.440 |
7.440 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
39.041 |
31.439 |
24.610 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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|
NETWORTH |
46.481 |
38.879 |
32.050 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
56.841 |
20.151 |
22.809 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
56.841 |
20.151 |
22.809 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
|
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TOTAL |
103.322 |
59.030 |
54.859 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
37.006 |
38.474 |
40.816 |
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Capital work-in-progress |
26.821 |
13.935 |
0.375 |
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|
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INVESTMENT |
0.002 |
0.002 |
3.607 |
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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 |
23.104
|
14.267 |
17.276 |
|
|
Sundry Debtors |
34.031
|
27.198 |
12.170 |
|
|
Cash & Bank Balances |
1.795
|
1.414 |
1.485 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
45.870
|
38.764 |
27.055 |
|
Total Current Assets |
104.800
|
81.643 |
57.986 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
52.958
|
41.387 |
31.592 |
|
|
Provisions |
12.349
|
33.637 |
16.333 |
|
Total Current Liabilities |
65.307
|
75.024 |
47.925 |
|
|
Net Current Assets |
39.493
|
6.619 |
10.061 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
103.322 |
59.030 |
54.859 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Sales
Turnover [including other income] |
381.682 |
303.837 |
301.977 |
|
|
|
|
|
|
Profit/(Loss) Before Tax |
34.931 |
37.979 |
27.216 |
|
Provision for Taxation |
-- |
-- |
9.007 |
|
Profit/(Loss) After Tax |
34.931 |
37.979 |
18.209 |
|
|
|
|
|
|
Export Value |
150.325 |
124.823 |
112.164 |
|
|
|
|
|
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Expenditure : |
|
|
|
|
Interest |
2.485 |
1.203 |
|
|
Depreciation |
5.074 |
5.386 |
|
|
Other Expenditure |
339.192 |
259.269 |
|
|
Total Expenditure |
346.751 |
265.858 |
274.761 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
9.15
|
12.49 |
6.03 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.15
|
12.49 |
9.01 |
|
|
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|
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|
Return on Total
Assets (PBT/Total Assets} |
(%) |
24.63
|
31.61 |
27.55 |
|
|
|
|
|
|
|
Return on
Investment (ROI) (PBT/Networth) |
|
0.75
|
0.97 |
0.85 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total
Liability/Networth) |
|
2.62
|
2.44 |
2.21 |
|
|
|
|
|
|
|
Current Ratio (Current
Asset/Current Liability) |
|
1.60
|
1.08 |
1.21 |
LOCAL AGENCY FURTHER INFORMATION
Fixed
Assets
v Freehold Land at Pune
v
Factory
Building
v
Plant and
Machinery
v
Electric
Installation
v
Factory
Equipments
v
Laboratory
Equipments
v
Office
Equipments
v
Computer
v
Furniture and
Fixture
v
Television
sets
v
Vehicles
v
Xerox Machine
v
Air
conditioners
v
Deepfreezes
and Refrigerator
Procurement
and Manufacturing Excellence
Procurement
excellence initiative resulted in significant improvement in quality of input material
thereby raising the overall standard of finished products.
There were
improvements in productivity efficiency through innovative approaches and
continuous improvement programs. We believe that these are powerful ingredients
for the making of tomorrow’s unchallenged winner.
Future
Outlook
A Motivated team,
new products, better marketing and distribution, tighter cost and inventory
control and the burning desire to capture all profitable market segments.
Export amounted Rs.
112.165 millions for the year, during the year, the company has exported
products to USA, Canada, UK, Germany, Singapore, UAE, Muscat, Bahrain, New
Zealand and Australia.
Form 8
|
Name of the company |
GITS FOODS PRODUCTS PRIVATE LIMITED |
|
Presented By |
Mr.
Raju H. Gandhi, Director |
|
1) Date and description of instrument creating the change |
05.12.1994 Two principal Hypothecation agreement (both constitute a single charge) |
|
2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 20.000 millions Cash credit Rs. 5.000 millions Packing Credit Rs. 7.500 millions Post Ship credit Rs. 7.500 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 |
Plant and machinery and equipments including computer installed in factory and office premises, furniture and fixture and all such items brought and installed at the aforesaid premises at any time and fresh and readily saleable stock of all kinds of raw materials, raw semi finished and finished goods and products lying in factory premises, Godown, in transit or elsewhere belonging to the company.
|
|
4) Gist of the terms and conditions and extent and operation of the
charge. |
Interest @ 18.25 % p.a., 13% p.a. and 13 % p.a. respectively with quarterly rests or such other rates of interest as may be prescribed by the Bank from time to time and with power to the Bank in the event of default to seize appoint receiver and realise. |
|
5) Name and Address and description of the person entitled to the
charge. |
79-A, Mehta House, Bombay Samachar Marg, Fort, Mumbai – 400023 |
|
6) Date and brief description
of instrument modifying the charge |
04.04.2005 Hypothecation agreement Memorandum of Entry for Equitable Mortgage by deposit of title deed (both constitute a single charge) |
|
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. |
By First Supplemental Agreement dated 9th September, 1996 the credit limit was revised to v Cash credit Rs. 10.000 millions v Packing Credit Rs. 5.000 Millions v Post Ship Credit Rs. 6.000 millions By a Memorandum of Understanding dated 31.10.1996 creating additional security by deposit of title deeds in respect of Plot of land at 18/2-18/3 Hadasper Industrial Estate, Pune with all constructions thereon and Shop No. 3, the Ground floor, United Apartments in House No. 2407, East Street, Pune. By hypothecation agreement (second supplemental agreement) dated 20.07.1999 the overall credit limit was further enhanced to Rs. 36.000 millions v Cash credit Rs. 22.000 millions v Packing Credit Rs. 8.000 Millions v Post Ship Credit Rs. 6.000 millions And Additional security provided by Equitable Mortgage of entire land at 18/3, Hadasper Industrial Estate, Pune and factory building thereon known as Gits House and Shop No. 3, on the Ground floor, United Apartments in House No. 2407, East Street, Pune and the office premises at Bandra Kurla Complex, Mumbai valued at Rs. 15.000 millions i.e. Premises No. 402 & 405, 4th Floor, Balarama, Bandra Kurla Complex, Bandra Mumbai The credit limit has now been enhanced to Rs. 40.000 millions v Cash credit Rs. 20.000 millions v Packing Credit Rs. 10.000 Millions v Post Ship Credit Rs. 10.000 millions And The existing charge on raw materials movable and immovable properties of the company earlier created by hypothecation and equitable mortgage by deposit of title deeds of cover the enhanced credit limits. |
Form 8
|
This form is for |
Modification of
charge |
|
Charge
identification number of the charge to be modified |
90090056 |
|
Corporate
identity number of the company |
U15443MH1994PTC079891 |
|
Name of the
company |
GITS FOOD
PRODUCTS PRIVATE LIMITED |
|
Address of the registered
office or of the principal place of
business in India of the company |
Gits House,
Hadapsar Industrial Estate, Hadapsar, Pune– 411013, Maharashtra, India |
|
Type of charge |
Immovable
Property Movable Property |
|
Particular of
charge holder |
Jammu and Kashmir
Bank Limited 79/A, Mehta
House, Bombay Samachar Marg, Fort, Mumbai 400023, Maharashtra, India |
|
Nature of
description of the instrument creating or modifying the charge |
Term loan cum
hypothecation agreement |
|
Date of
instrument Creating the charge |
04.11.2006 |
|
Amount secured by
the charge |
Rs. 40.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
[a] Rate of
interest Term loan PLR 2%
with monthly rest [b] Terms of
repayment 20 Quarterly
installments of Rs. 2.000 Millions each [c] Extent and
operation of the charge Charge in the
securities already held by the lender for existing working capital facilities
shall extended to the present term loan of Rs. 40.000 Millions |
|
Short particulars
of the property charged |
Fresh and readily
saleable stock of all kinds of raw materials, raw finished, semi finished and
finished goods and products lying in factory premises, godown. All plant and
machinery equipments and other movables like plant and machinery equipments
and other movables as also stocks and goods. Equitable
mortgage on land property bearing plot no. 18/1, 18/5 and 18/6 situated at
Hadapsar Industrial Estate, Hadapsar, Pune and fixed assets to be created in the
form of Building, plant and machinery |
|
Date of latest
modification |
04.04.2005 |
|
Particulars of
the present modification |
Grant of
additional term loan of Rs. 40.000 Millions |
AS PER
WEBSITE
Founded as a small family enterprise in 1963 by partners H. Z.
Gilani and A. K. Tejani, Gits is now at the forefront of the instant foods
revolution in India. Pioneering the ready-to-cook concept with a range of
dehydrated soup mixes such as Tomato, Vegetable and Chicken, Gits moved on to
bring diverse traditional Indian foods from 'Halwais' (sweet makers) and
'Bawarchis' (chefs) to the home.
Gits has captured India's fast growing market through
its quality products, formidable distribution network and aggressive marketing
strategy. The company now manufactures a whole range of Indian snacks developed
and perfected by rigorous in-house R&D. This has enabled Gits to roll full
steam to a position of brand leadership. Gits has won awards consecutively over
the years for its growing exports. Today, exports to USA, Canada, UK,
Australia, Asia, the Middle East and Europe account for 35% of total revenue.
This unprecedented growth was secured under the
leadership of Joint Managing Directors, M.A. Tejani and R. H. Gilani.
Gits 'primary concern is quality : A commitment that necessitates
consistent investment in Technology and modern equipment. Gits products are
manufactured by automatic machines in strictly hygienic conditions at plants in
Pune and Nasik.
The ultra-modern dairy plant at Nandur is supplied
and installed by Alfa-Laval.
Rigorous implementation of strict quality control
ensures that Gits products always match high purity standards. Only farm fresh
produce provide the raw materials for its products. ISO 9002, a systems
benchmark of international standards, is under implementation in the
organisation.
Gits' growing national distribution network presently comprises depots and
C&F agents stationed in every major Indian state. Distribution depth is
provided by 600 distributors located across India. A hundred strong sales force
provides the cutting edge to the company's marketing and merchandising efforts.
In its globalisation effort, Gits is further developing its strong export market in the Middle East, USA, UK and other European countries. After achieving success's by focusing export efforts on the South Asian community, Gits is strategically broadening its target group to include the Non-Asian, and has flagged off this strategy launching new international style export packaging.
Streamlining of manufacturing process and strengthening of the marketing and
distribution networks are part of the on-going efforts. R&D operation are
geared to extend product lines while retaining core competencies. Consumer
satisfaction remains Gits' hallmarks as it ventures to new destinations
ahead.
Traversing and integrating the entire country, Gits brings a
mouth-watering range of Indian delights. For the sweet tooth, it offers Gulab
Jamun Mix and Jilebi Mix- universal favourites. Lovers of South-Indian cuisine
can choose from Idli, Rava (Semolina) Idli, Dosa and Sambhar Mix. Gits' Dhokla
Mix and Khaman Dhokla come to you straight from Gujarat in Western India. Gits
Pakora entertains guests at teatime, another national favourite. Bengali
sweets, an offering from the east, will be launched shortly. Working on the
platform of instant mixes, Gits then targeted the famous Indian Papads, and was
the first to bring to the market fully machine-made papads of all varieties in standard
sizes. A unique line of Mini Papads was launched, and new lip-smacking
varieties of Mini Papads based on Potato, Corn and Rice have been added to the
range.
Exploring new tracks, Gits has diversified into the
dairy products segment. Two companies, namely : Convenience Foods Pvt. Ltd. and
Clover Foods Pvt. Ltd., were set up to manufacture pure ghee, dairy whitener
and milk powder under the trusted Gits brand name. Gits Pure Ghee has been
awarded the Agmark special grade in recognition of its superior quality by the
government of India. Gits Milk Powder bears the ISI quality mark issued by the
Bureau of Indian standards (Govt. of India). Gits will soon unveil Whole Milk
Powder, Skim Milk Powder and other dairy products.
CMT REPORT (Corruption,
Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 42.89 |
|
UK Pound |
1 |
Rs. 84.84 |
|
Euro |
1 |
Rs. 67.61 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
59 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|