MIRA
INFORM REPORT
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Report Date : |
25.11.2008 |
IDENTIFICATION DETAILS
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Name : |
NIRU JEWELS PRIVATE LIMITED |
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Registered Office : |
112/ 115 The |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
06.06.2003 |
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Com. Reg. No.: |
11-140764 |
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CIN No.: [Company
Identification No.] |
U51398MH2003PTC140764 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMN12011G |
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PAN No.: [Permanent
Account No.] |
AABCN8598A |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers and
Exporters of Plain and Diamond Studded Gold and Platinum Jewellery |
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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Status : |
Satisfactory |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having satisfactory track. Trade relations are fair.
General financial position is satisfactory. Payments are usually correct and
as per commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. As gathered,
payments are slow to the suppliers |
LOCATIONS
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Registered Office : |
112/ 115 The |
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Tel. No.: |
91-22-28990210 /
23684401 / 2 / 3 |
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Mobile No.: |
91-9820175055 |
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Fax No.: |
91-22-28290859 /
23683658 |
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E-Mail : |
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Corporate Office : |
Unit No. 704,
Tower I Seepz ++, Seepz Sez, Andheri (East), Mumbai - 400096, |
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Tel. No.: |
91-22-28290210 /
11 |
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Fax No.: |
91-22-28290859 |
DIRECTORS
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Name : |
Mr. Darshan Harshad Dave |
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Designation : |
Director |
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Address : |
310, Chandralok, ‘A’ 97, |
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Date of Appointment : |
06.06.2003 |
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Date of Ceasing: |
07.07.2004 |
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Name : |
Mr. Govardan Govind Vanani |
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Designation : |
Managing Director |
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Address : |
101-B, 201B, Walkeshwar, Om Vikas Co-operative Housing Society
Limited, 105-107, |
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Date of Birth/Age : |
07.08.1955 |
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Date of Appointment : |
07.08.2003 |
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Name : |
Mr. Amit Govardhan Vanani |
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Designation : |
Whole time Director |
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Address : |
101-B, 201B, Walkeshwar, Om Vikas Co-operative Housing Society
Limited, 105-107, |
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Date of Birth/Age : |
28.12.1979 |
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Date of Appointment : |
07.08.2003 |
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Name : |
Mr. Tejas Mukesh Shah |
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Designation : |
Director |
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Address : |
Sagar Vihar, 2nd Floor, K M Munshi Marg, Chowpatty,
Mumbai-400007, |
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Date of Birth/Age : |
15.07.1977 |
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Date of Appointment : |
06.06.2003 |
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Date of Ceasing: |
07.07.2004 |
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Name : |
Mr. Mukesh Jayantilal Shah |
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Designation : |
Director |
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Address : |
Sagar Vihar, 2nd Floor, K M Munshi Marg, Chowpatty, Mumbai-400007,
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Date of Birth/Age : |
12.06.1951 |
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Date of Appointment : |
07.07.2004 |
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Date of Ceasing: |
01.07.2006 |
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Name : |
Mrs. Gita Mukesh Shah |
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Designation : |
Director |
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Address : |
Sagar Vihar, 2nd Floor, K M Munshi Marg, Chowpatty,
Mumbai-400007, |
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Date of Birth/Age : |
27.09.1950 |
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Date of Appointment : |
07.07.2004 |
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Date of Ceasing: |
01.07.2006 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 25.09.2007
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Names of Shareholders |
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No. of Shares |
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Govardhan Govind Vanani |
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3138250 |
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Amit Govardhan Vanani |
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2798250 |
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Total |
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5936500 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2007
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Category |
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Percentage |
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Directors or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and
Exporters of Plain and Diamond Studded Gold and Platinum Jewellery |
GENERAL INFORMATION
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Suppliers : |
·
Jaymax Diamond ·
Kiran Export ·
Laxmi Diamond ·
Maruti Impex ·
Diamond Ace ·
Niru Impex ·
Shine Diam ·
Ambe Gems Company Limited ·
Ankit Diamonds ·
·
Deepak Diamonds ·
Dhanraj Djhadda Exports ·
Fine Facets Inc. ·
Godhani Gems ·
Godhani Impex ·
Golkunda Diamonds ands Jewellery ·
J B Diamonds ·
Jerry Hogan Inc, ·
K C Chandrakant and Company ·
Lakhi Gems Impex Private Limited ·
Millennium Design ·
M Kantilal Exports ·
Gandhi enterprises ·
Khodal Gems ·
R. Bipinchandra and Company |
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Customers : |
·
Gemdian Inc (Export) ·
Intergold India Limited ·
B and D Wedding Rings ·
Diasqua (HK) ·
Firway INC ·
Fine Facet ·
Jerry Hogan, Inc ·
Jewel Mark LLC ·
Kashi Whole ·
Luccello, Inc ·
·
Rodeo of ·
Shine Diam, Inc ·
World Gold N Diamonds ·
Zacks Fine Jewellery ·
Zales Corporation ·
Zap M.S. 5 ·
AdC Jewellery Inc. ·
A R Design USA, Inc ·
CJW Jewellery Limited ·
·
Dynamic Design Group Inc. ·
Elegant Diamond Limited ·
Emmanuel Diamond Limited ·
Glitter Success Limited ·
J Design by Shine Inc. ·
Jebel Gems, Inc. ·
Jewel America Inc. ·
Jewelers Value Network ·
Jewellery Design by Expressions Inc. ·
M and L Inc. ·
Motiganz U.S.A Limited ·
Niru Usa Limited ·
Pretty Jewellery Int’l Limited ·
Ranee Designs ·
R K Diamonds ·
RKS Jewellery Inc. ·
Tamina Diamonds Intel DMCC ·
Unique Designs Inc. |
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No. of Employees : |
350 |
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Bankers : |
·
Union Bank of ·
State Bank of |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Naresh S Shah and Company Chartered Accountant |
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Address : |
254, 5th Floor, Prathik Arcade, Near Prasad Chambers, Tat
Road, Opera House, Mumbai-400004, Maharashtra, India |
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Group Companies : |
·
Niru Creation ·
Niru Impex ·
Roshan Jewels Private Limited |
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Associates/Subsidiaries : |
Ř Gonzalez Global Enterprises - Tiaras,
jewelry, wedding jewelry, keepsakes Ř Modi Emporium - Manufacturer and exporter
of studded silver jewellery from Ř Silver Charely Company, Limited - Sterling silver rings, sterling silver
earrings, sterling silver necklaces, brass jewelry Ř Seramco Associates - Fashion Jewelry Ř Juwelenlust - Silver jewelry, gemstones,
diamonds Ř HJ Exports
- Costume / imitation / fashion jewellery. Sterling silver &
semi-precious stones jewellery. Ř Hamisama - Ethiopian brown opal Ř Euromar International Group - Export
Jewelry in Larimar and Amber Ř Belldandy - Jewelry, house, boat and land Ř CiYi Health Jewelry Factory - Magnetic
hematite jewelry, cat eye, semi-precious stone Ř Ho Kwong Pearl Company - Fresh water pearl
raw form or jewelry Ř Usacl - Handbags and accessories Ř Esaaks sound - Costume, fashion jewelry,
bags and electronic products Ř Infinite Mining Company Limited -
Tantalite, lead, iron ore, tin, zinc, gold, platinuin, bismuth, columbite,
and any gemstones Ř D. Pravinchandra & Company - Polished
diamonds in all shapes/colours/cuts Ř Pierce & Price Pty Limited -
Pierce&price is an Australian owned and run fine silver jewelry, body
piercing jewelry and new fashion products wholesaler that has been operating
out of Sydney, Australia for the past two years. Ř Dech Multi-links Services - Exporting
genuine precious stones and gems from Africa to Ř KTA (Korea Trading Agency) - Luxury hair
pin/mobile phone accessary Ř Mediterranean Import Export - Fine
jewellery, natural gemstones, sterling silver jewellery, leather fashion
products and costume jewellery. Ř Mirac Foreign Trade Company - Gift,
apparel designing and ethnic garments, miniature carpets, bookmarks and
handcrafted |
CAPITAL STRUCTURE
As on 25.09.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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6000000 |
Equity Shares |
Rs. 10/- each |
Rs. 60.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
5936500 |
Equity Shares |
Rs. 10/-
each |
Rs. 59.365
Millions |
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 |
59.365 |
19.365 |
18.300 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
225.042 |
13.185 |
0.203 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
284.407 |
32.550 |
18.503 |
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LOAN FUNDS |
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1] Secured Loans |
313.487 |
32.598 |
29.188 |
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2] Unsecured Loans |
0.042 |
2.634 |
[7.816] |
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TOTAL BORROWING |
313.529 |
35.232 |
21.372 |
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DEFERRED TAX LIABILITIES |
0.000 |
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TOTAL |
597.936 |
67.782 |
39.875 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
38.757 |
37.536 |
38.391 |
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Capital work-in-progress |
0.000 |
0.150 |
0.150 |
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INVESTMENT |
38.928 |
6.494 |
5.263 |
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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 |
472.593
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66.282 |
22.397 |
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Sundry Debtors |
297.950
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79.227 |
17.000 |
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Cash & Bank Balances |
10.453
|
0.471 |
0.426 |
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Other Current Assets |
0.995
|
1.192 |
1.899 |
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Loans & Advances |
55.602
|
1.248 |
0.336 |
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Total
Current Assets |
837.593
|
148.420 |
42.058 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
317.092
|
124.718 |
46.135 |
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Provisions |
0.250
|
0.100 |
0.000 |
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Total
Current Liabilities |
317.342
|
124.818 |
46.135 |
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Net Current Assets |
520.251
|
23.602 |
[4.077] |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.148 |
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TOTAL |
597.936 |
67.782 |
39.875 |
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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 |
1137.637 |
99.892 |
28.355 |
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Other Income |
0.000 |
0.000 |
0.000 |
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Total Income |
1137.637 |
99.892 |
28.355 |
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Profit/(Loss) Before Tax |
212.008 |
13.081 |
0.203 |
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Provision for Taxation |
0.000 |
0.100 |
0.000 |
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Profit/(Loss) After Tax |
212.008 |
12.981 |
0.203 |
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Total Expenditure |
925.629 |
86.811 |
28.152 |
KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
18.64
|
13.00 |
0.72 |
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Net Profit Margin (PBT/Sales) |
(%) |
18.64
|
13.10 |
0.72 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
24.19
|
7.03 |
0.25 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.75
|
0.40 |
0.01 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.22
|
4.92 |
3.65 |
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Current Ratio (Current Asset/Current Liability) |
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2.64
|
1.19 |
0.91 |
LOCAL AGENCY FURTHER INFORMATION
Operations:
The Company has commenced its operation of Manufacture of Jewellery
w.e.f 01st July, 2004. The Board is pleased to state that the
company has had a substantial increase in turnover form Rs. 99.500 Millions in
Financial Year 2005-06 to Rs. 1137.600 Millions in Financial Year 2006-07. The
Company has also undertaken job work of manufacturing of jewellery during the
period 01.04.2006 to 31.03.2007 on behalf of others.
Fixed Assets:
·
Air Condition Machine
·
Plant and Machinery
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Computer
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Furniture and Fittings
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Office Equipments
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Electrical Installation
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Seepz Factory Premises
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Electronic Weighing Scale
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Microscope
·
Stabiliser
·
Mobile Phone
Bankers Charges
Report as per Registry
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This form is for |
Modification of
charge |
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Charge identification
number of the modified |
10040467 |
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Corporate
identity number of the company |
U51398MH2003PTC140764 |
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Name of the
company |
NIRU JEWELS PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in |
112/ 115 The |
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Type of charge |
Book Debts Movable Property Immovable
Properties |
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Particular of
charge holder |
State Bank of |
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Nature of
description of the instrument creating or modifying the charge |
1. Second Supplemental to working capital
consortium Agreement 2. Second supplemental to joint hypothecation
deed 3. inter se Agreement 4. Supplemental Memorandum for Induction of
New Bank all Constitute single charge. |
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Date of
instrument Creating the charge |
04.03.2008 |
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Amount secured by
the charge |
Rs. 330.000 Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest As stipulated by
the said banks in their sanction letters and as advised form time to time
plus service charges as are applicable to the said facilities form time to
time. Terms of
Repayment As per sanction
Letters Margin As per sanction
Letters Extent and
Operation of the charge Not Applicable Others Not Applicable |
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Short particulars
of the property charged |
The whole of the
current assets of the borrower namely, stock of raw materials, stock in
process, semi finished goods and finished goods, stores and spares not
relating to plant and machinery (consumable stores and spares), bills
receivables and book debts and all other movables, both present and future
whether now lying loose or in case or which are now lying or stored in or
about or shall hereinafter form time to time. During the continuance of the
security fo these presents (as per Annexure) |
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Name of the company |
NIRU JEWELS PRIVATE LIMITED |
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Presented By |
-- |
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1) Date and description of instrument creating the change |
Term Loan Agreement [Hypothecation of Movable] Dated 07.08.2004 General Term Loan agreement Dated 07.08.2004 [Both the above documents constitute a single charge] |
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2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 27.000 Millions |
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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 |
The Borrower hereby hypothecates and charges to the Bank all those
Machinery / plant / vehicles / capital
/ goods / assets purchased or to be purchased by the Borrower out of this
loan such as Wax Injectors, Casting Machines, Motors , Shafts, refinery
equipments, Electrical Dust Collector, Polishing Machines, Computers and
peripherals and office equipments etc. whether installed or nor or whether
lying loose or in cased or in transit to the borrowers premises or at any
time in course of transit to the premises factory of the Borrowers at Unit
No. 704, Tower I, Seepz SEZ, Andheri East, Mumbai – 400096 whatsoever and
wherever in the possession or occupation of the Borrower as a security for
payment to the Bank of the loan or the balance due to the Bank by the
Borrower on the loan account hereunder referred to as the hypothecated
assets. |
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4) Gist of the terms and conditions and extent and operation of the
charge. |
Interest at the rate of BPLR + 1.50 % per annum with monthly rests or
at such other rate as may be prescribed by the bank from time to time
depending on the changed in the Prime Term landing rate of the bank or on the
directives of Reserve Bank of India
from time to time or the policy of the Bank for the term Loan facility
of Rs. 27.000 millions granted by the Bank to the company. Margin : 25 % Repayment : The term loan is repayable in 12 quarterly instalments of
Rs. 2.250 millions each commencing from December, 2004 onwards. |
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5) Name and Address and description of the person entitled to the
charge. |
Union Bank of India Overseas Branch Seepz ++, unit Block No. II, Seepz
++ Complex, Marol Industrial Area, Jogeshwari, |
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6) Date and brief description
of instrument modifying the charge |
Agreement of Hypothecation of goods and assets Dated 07.12.2005 Agreement of loan for overall limit Dated 07.12.2005 [Both the above documents constitute a single charge] |
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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. |
That in pursuance of the said agreement of loan and in consideration
of Bank having granted and agreed to grant to the borrower all or some or any
of the aforesaid credit facilities for the purposes and subject to the terms
and conditions specified and contained in the said agreement of loan and in
consideration of premises aforesaid it is hereby agreed and declared that all
present and future goods, book debts and all other movable asset of the
borrower including documents of title to the goods, outstanding moneys receivables including receivable by way of
cash assistance and or cash incentives under the cash inventive scheme or any
other claims including claims by way of refund or excise duties under the
duty drawback credit scheme or any other scheme bills, invoices documents
contract insurance policies, guarantees, engagements, securities investments
and rights and the present machinery listed in the schedule hereunto the
further machinery belonging to or in the possession or under the control of
borrower wherever lying stored and kept and whether in possession of the
borrower or of the bank or of any third party whether in India or elsewhere
throughout the world [including all such goods, other movable assets an may
be in course of shipment transit or deliver] thereinafter referred to as the
said goods and assets shall stand hypothecated to the bank by way of first
charges subject however to any charge in favour of any third party which may
have been notified by the Borrower ad accepted by the Bank as having
propriety over its own charge as security for payment and discharge by the
Borrower to the Bank on demand of a sum of Rs. 92 millions and all other
moneys at any time payable by the borrower to the bank under or in respect of
all or some any of the aforesaid credit facilities granted to be granted to
the Borrower and also as security for the payment and discharge of all
indebtedness whatsoever or liability
of the borrower to the Bank in respect of any liability undertaken by the
Bank under any letter of credit opened or guarantee or indemnity issued by
the Bank of the Borrower or otherwise in respect of any account at any office
of the Bank whether in India or elsewhere and whether accrued accruing or
contingent and whether solely or jointly with other and any bills of exchange
promissory notes instrument at any time drawn made accepted or endorsed by
the borrower solely or jointly with
others which the bank may discount at become interested in together
with all interest, discount, commission, charges costs and expenses payable
to or incurred by the Bank in relations thereto Provided however that where
the Bank has at the specific request of the Borrower and in the sole
discretion communicated in wiring to the borrower and in its sole discretion
communicated in writing to the borrower that in respect of any specific item
of goods, book debts and other movable assets this chare by way of
hypothecation will nor operate such goods book dents and other movable assets
shall be deemed as not having been hypothecated to the Bank as stated herein
before. As security for payment and discharge by the borrower to the bank of
the said sum of Rs. 92.000 millions and interest and costs charges expenses
and other monies due and payable by the borrower to the bank under or in
respect of the aforesaid credit facilities or any of them the Borrower shall
as may be required create in favour of the bank A mortgage in a form satisfactory to the bank of all the borrower’s
immovable properties both present and future and A first charge by way of hypothecation and or pledge of the including
documents of title to the goods and other assets such as book debts
outstanding moneys, receivables including receivables by way of cash
assistance and / or cash incentives scheme or any other scheme claims,
including claims by way of refund of customs / excise duties under the Duty
Drawback credit insurance policies guarantees, engagements, securities
investments and right uncalled capital and all machinery present and future
of such form satisfactory to the Bank.
|
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.50.09 |
|
|
1 |
Rs.74.90 |
|
Euro |
1 |
Rs.63.40 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
|