MIRA
INFORM REPORT
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Report Date : |
26.11.2008 |
IDENTIFICATION DETAILS
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Name : |
AMIANTIT FIBERGLASS INDUSTRIES INDIA PRIVATE LIMITED |
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Registered Office : |
Salgaocar Centre, Rua De Ourem, Panaji, Goa – 403 001, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
11.02.2003 |
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Com. Reg. No.: |
24-3186 |
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CIN No.: [Company
Identification No.] |
U25191GA2003PTC003186 |
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IEC No.: |
1703000340 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRA04555F |
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PAN No.: [Permanent
Account No.] |
AAECA2324A |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturers of Flowtite Pipes and Tanks |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 2200000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Mr. Sameer and Ms. Ayesha Pinto of Finance Department may give the
require details after consultation with higher management. Subject is a well established and reputed company having satisfactory
track. Trade relations are fair. Payments are reported as slow but correct. The company can be considered normal for business dealings at usual
trade terms and conditions. |
INFORMATION PARTED BY
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Name : |
Mr. Sameer |
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Designation : |
Finance Department |
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Date : |
25.11.2008 |
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Name : |
Ms. Ayesha Pinto |
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Designation : |
Finance Department |
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Date : |
25.11.2008 |
LOCATIONS
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Registered Office : |
Salgaocar Centre, Rua De Ourem, Panaji, Goa – 403 001, |
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Tel. No.: |
91-832-2228612 / 6619999 |
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Mobile No.: |
91-9923205009 |
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Fax No.: |
91-832-2224324 / 6619900 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Factory : |
Survey No. 120 (Part), 121 and 177 (Part), |
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Tel. No. : |
91-832-2386551 – 54 / 6619999 |
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Fax No. : |
91-832-2386555 / / 6619900 |
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Location
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Leased |
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Corporate Office : |
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Tel. No. : |
966-3-84715 00 |
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Fax No. : |
966-3-847 16 45 |
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E-Mail : |
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President’s Office : |
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Tel. No. : |
966-2-606 42 71 |
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Fax No. : |
966-2-606 42 57 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Shivanand S. Salgaocar |
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Designation : |
Director |
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Address : |
Hira Vihar House No. 278, , |
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Date of Birth/Age : |
24.07.1954 |
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Date of Appointment : |
11.02.2003 |
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Name : |
Mr. Vijay S. Hede |
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Designation : |
Director |
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Address : |
Villa No. 12, Kamag Kinara, Milamar, Panji, North Goa – 403 001, |
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Date of Birth/Age : |
02.09.1951 |
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Date of Appointment : |
11.02.2003 |
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Name : |
Mr. Shyam Kumar Natarajan |
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Designation : |
Director |
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Address : |
103, Sharnag Apartments, 18 Cross
Malleswaram, |
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Date of Birth/Age : |
06.07.1971 |
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Date of Appointment : |
01.08.2006 |
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Name : |
Mr. Fareed Yousef M Khalawi |
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Designation : |
Director |
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Address : |
Al-Shatie District, |
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Date of Birth/Age : |
27.03.1952 |
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Date of Appointment : |
31.12.2003 |
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Name : |
Mr. Wehbe Rafih |
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Designation : |
Director |
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Address : |
Saudi Arabian Amiantit Company, P. O. Box No. 2140, |
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Date of Birth/Age : |
17.10.1953 |
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Date of Appointment : |
31.12.2003 |
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Name : |
Mr. Khaled Abdulfattah K Kordi |
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Designation : |
Director |
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Address : |
Prince Naif Street, Al-Shafie District, Corniche Area, Jeddah 21451,
Saudi Arabia |
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Date of Birth/Age : |
17.03.1953 |
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Date of Appointment : |
18.09.2006 |
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Name : |
Mr. Lars Hakan Olov Kamerlin |
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Designation : |
Director |
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Address : |
Richard Wagner, STR 9/203, |
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Name : |
Dr. Solaiman A Al-Twaijri |
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Designation : |
Director |
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Address : |
1st Industrial Area, P. O. Box No. 589, Dammam 31421, |
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Name : |
Mr. Weidel Helmut D |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
23.07.1956 |
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Name : |
Mr. Ludwig Hertmut |
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Designation : |
Director |
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Address : |
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(As on 29.09.2007)
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Names of Shareholders |
No. of Shares |
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Shivanand S. Salgaocar |
1050000 |
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Ranjana S. Salgaocar |
2000000 |
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Swati S. Salgaocar |
1000000 |
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Vivek S. Salgaocar |
1000000 |
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Mahadhan Real Estates Private Limited |
1700000 |
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Sharvani Investments Private Limited |
250000 |
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Pyramid Finance Limited |
500000 |
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Amiantit Intl. Holding Limited |
17500000 |
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Total |
25000000 |
Equity shares Breakup (percentage of total equity)
(As on 29.09.2007)
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Category |
Percentage |
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Foreign holdings (Foreign institutional investor(s), Foreign
companie(s) Foreign financial institution (s), Non-Resident indian(s) or Overseas
corporate bodies or Others |
70.00 |
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Bodies corporate |
9.80 |
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Directors or relatives of directors |
20.20 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Flowtite Pipes and Tanks |
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Products : |
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Terms : |
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Selling : |
L/C |
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Purchasing : |
Credit (90 days) |
PRODUCTION STATUS
(As on 31.03.2008)
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Glass reinforced polyester tanks |
Nos. |
Installed capacities are not quantifiable, since the company manufacturers
a wide variety of pipes and installed capacity varies depending upon the
product mix. |
78 |
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Glass reinforced polyester pipes |
Mtrs. |
122485 |
GENERAL INFORMATION
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Customers : |
·
End Users ·
Wholesalers ·
Retailers |
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No. of Employees : |
232 |
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Bankers : |
Corporation Bank Panji Branch, |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Address : |
12, |
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Tel. No.: |
91-22-66679000 |
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Fax No.: |
91-22-66679025 |
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E-Mail : |
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Associates/Subsidiaries : |
Pyramid Finance Limited Address : Salgaocar
Centre, Panaji, Line of Business
: Finance |
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Holding Company : |
Amiantit International Holding Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
250.000 |
250.000 |
250.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
183.344 |
115.340 |
0.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
(10.701) |
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NETWORTH |
433.344 |
365.340 |
239.299 |
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LOAN FUNDS |
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1] Secured Loans |
515.548 |
319.105 |
217.121 |
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2] Unsecured Loans |
22.279 |
2.521 |
12.845 |
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TOTAL BORROWING |
537.827 |
321.626 |
229.966 |
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DEFERRED TAX LIABILITIES |
22.782 |
17.099 |
18.058 |
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TOTAL |
993.953 |
704.065 |
487.323 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
597.135 |
380.424 |
384.403 |
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Capital work-in-progress |
1.432 |
76.786 |
0.637 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
254.873
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305.351 |
163.137 |
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Sundry Debtors |
573.739
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240.781 |
156.009 |
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Cash & Bank Balances |
36.851
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26.027 |
12.090 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
147.773
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126.607 |
98.302 |
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Total
Current Assets |
1013.236
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698.766 |
429.538 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
599.959
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441.542 |
319.683 |
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Provisions |
17.891
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10.424 |
7.681 |
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Total
Current Liabilities |
617.850
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451.966 |
327.364 |
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Net Current Assets |
395.386
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246.800 |
102.174 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.055 |
0.109 |
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TOTAL |
993.953 |
704.065 |
487.323 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
1194.416 |
992.259 |
930.608 |
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Other Income |
12.117 |
7.753 |
1.572 |
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Total Income |
1206.533 |
1000.012 |
932.180 |
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Profit/(Loss) Before Tax |
141.271 |
118.677 |
111.035 |
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Provision for Taxation |
8.306 |
(7.364) |
25.870 |
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Profit/(Loss) After Tax |
132.965 |
126.041 |
85.165 |
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Expenditures : |
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Manufacturing Expenses |
920.269 |
892.401 |
744.389 |
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Excise Duty |
3.278 |
1.841 |
(3.743) |
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Increase/(Decrease) in Finished Goods |
45.295 |
(80.837) |
9.573 |
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Interest and Financial charges |
45.846 |
25.800 |
29.647 |
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Depreciation & Amortization |
50.574 |
42.130 |
41.279 |
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Total Expenditure |
1065.262 |
881.335 |
821.145 |
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KEY RATIOS
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PARTICULARS |
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31.03.2008 |
31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
11.02
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12.60 |
9.14 |
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Net Profit Margin (PBT/Sales) |
(%) |
11.83
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11.96 |
11.93 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
8.77
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10.99 |
13.64 |
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Return on Investment (ROI) (PBT/Networth) |
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0.33
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0.32 |
0.46 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.67
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2.12 |
2.33 |
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Current Ratio (Current Asset/Current Liability) |
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1.64
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1.55 |
1.31 |
LOCAL AGENCY FURTHER INFORMATION
Form No. 8
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Name of the company |
AMIANTIT FIBERGLASS INDUSTRIES INDIA PRIVATE LIMITED |
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Presented By |
Mr. Vijay S Hede
– Director |
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1) Date and description of instrument creating the change |
1. Equitable Mortgage 2. Agreement for Term Loan 3. Hypothecation of Goods to secure Demand
Cash Credit 4. Unattested Deed of Hypothecation of
movables 5. Agreement for Hypothecation of Book Debts 6. Counter Guarantee for limits sanctioned 7. Agreement for Inland and Foreign Bills all
dated 05.09.2003. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Fund Base Cash Credit –
Rs.30.000 millions Term Loan –
Rs.250.000 millions BE/LRDS/FDBN/FDBP/FDBD/DBC/BDD
Rs.10.000 millions Total – Rs.290.000 millions Non - Fund Base Limits Bank Guarantee -
Rs.170.000 millions Forward Contract
Limit – Rs.10.000 millions Total – Rs.180.000 millions Total Rs.470.000 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 |
·
Leasehold
Plot obtained from Goa IDC admeasuring 262664 mtrs. Sq. bearing survey no.
120 (part) 121 and 177 (part) located at Navelim Village, Taluka Bicholim,
Goa and factory shed already constructed and to be constructed on this land,
Plant and Machinery ·
Stock
of raw material, stock in process, finished goods, stores and spares, packing
materials, consumables etc and book debts ·
LRs
of Approved transport operators covering dispatch of finished goods. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of interest Cash Credit –
11.5% p.a. Term Loan – 1.25%
below CBMTLR. i.e. 11% p.a. FDBN/FDBP/FDBD Upto 90 days –
8.5% p.a. Above 90 days –
11.5% p.a. BE/LRDS/DBC/BDD: At PLR 11.50%
p.a. Bank Guarantee Cash Margin of
10% Commission – 1.5%
p.a. plus Rs.100/- and 1% p.a. plus Rs.100/- |
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5) Name and Address and description of the person entitled to the charge. |
Corporation Bank Near |
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6) Date and brief description of instrument modifying the charge |
First Modification ·
Hypothecation
of goods to secure Demand Cash Credit ·
Agreement
for Hypothecation of Book Debts ·
Counter
Guarantee for the limits sanctioned ·
Letter
of Continuity (for security other than mortgage of immovable properties) ·
Continuity
letter All dated 27th
May 2004 Second Modification (Current) ·
Supplemental
Deed pf Hypothecation of goods ·
Supplemental
Deed pf Hypothecation of Book Debts ·
Letter
of Continuity All dated
14.12.2004 |
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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. |
First Modification ·
Extension
of mortgage by Deposit of title deeds admeasuring 262664 sq. mtrs. obtained
form Goa IDC bearing Survey no. 120 (Part) 121 and 177 (Part) located at ·
Stock
of raw materials, stock in process, packing materials etc. and book debts ·
LRs
of approved transport operations covering dispatch of finished goods Limits revised as
under :
·
Out
of the above, the total working capital limit is Rs.52.500 millions i.e. cash
credit Rs.42.500 millions and BE/LRDS/FDBN/FDBP/FDBD/DBC/BDD is Rs.10.000
millions. Between these two limits, the interchangeability is permitted
within the overall limit of Rs.52.500 millions. ·
Margin
– 25% Cash Credit Rate of interest – Cash Credit @ 10.50% p.a. Term Loan – 1.25% below CBMTLR i.e. 11% p.a. ·
FDBN/FDBP/FDBD: Upto 90 days – 8.5% p.a. Above 90 days – 11.5% p.a. BE/LRDS/DBC/BDD: At PLR 11.50% p.a. ·
Bank
Guarantee Cash Margin of 10% Commission – 1.5% p.a. plus Rs.100/- and 1% p.a. plus Rs.100/- ·
All
other terms and conditions remained same. Second Modification (Current) Extension of All
the stocks i.e. Raw-Materials consisting of Glass Fiber, Resins, Sands etc,
semi – finished and finished goods, stock in process, stores and spares,
packing materials etc. Hypothecation of
Receivables of Book Debts stands continue for the enhance limit. Continuity of
deposit of title deed already deposited on 05.09.2003 as per memorandum of
Deposit of title Deeds of Company’s properties at Survey No. 120 (part), 121
and 177 (part) at Navelim village Bicholim Taluka, Go of about 26244 sq. mtr. The present
limits of Rs.52.500 millions is enhanced by Rs.7.500 millions. Now the total
limit stands to Rs.60.000 millions Margin : 25% on
Stock and Book Debts Rate of interest
: 12.50% p.a. compounded at monthly rests. Repayment :
Within 60 days from the date of disbursement. |
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Corporate
identity number of the company |
U25191GA2003PTC003186 |
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Name of the
company |
AMIANTIT FIBERGLASS INDUSTRIES INDIA PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in |
Salgaocar Centre, Rua De Ourem, Panaji, Goa – 403 001, |
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This form is for |
Modification of
charge |
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Type of charge |
·
Immovable
property ·
Book
debts ·
Movable
property (not being pledge) ·
Others o
Stock
of Raw Material and Receivables |
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Particular of
charge holder |
Corporation Bank Panji Branch, |
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Nature of
instrument creating charge |
·
Supplemental
Common Deed of Hypothecation of Movables / Assets/Debts ·
For
Inland / Foreign Bills ·
Continuity
Letter |
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Date of instrument
Creating the charge |
31.03.2008 |
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Amount secured by
the charge |
Rs.1655.000
millions |
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Brief of the
principal terms an conditions and extent and operation of the charge |
·
Rate
on interest 9.75% for bill discounting under L/C limit for Rs.350.000 millions ·
Terms
of repayment As per Bank Terms and Conditions ·
Margin As per Bank Terms and Conditions ·
Extent
and operation of the charge To the extend of Rs.1655.000 millions
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Particulars of
the property charged |
The charge is
further modified by way of hypothecation of stocks of raw materials such as
Resin, Sand, Fiberglass, Semi finished and finished goods such as GPR Pipes,
Tanks…. |
Fixed Assets
·
·
Buildings
·
Plant and Machinery
·
Furniture and Fittings
·
Office Equipment
·
Electrical Fittings
·
Vehicles
·
Computers
Subject, founded in 2002 in
Pipe Systems
Companies :
Amiantit Fiberglass Egypt S.A.E. (AFEC)
Ameron Egypt
Ameron Saudi Arabia Limited (ASAL)
Amiantit Fiberglass Industries India Private Limited
Amiantit Fiberglass Industries Limited (AFIL)
Amiantit Polyolefin Piping Systems Company Limited (APPSCO)
Amitech Argentina SA
Amitech Brazil Tubos SA
Amitech Germany GmbH
Amitech Industrial Saudi Arabia Limited
Amitech Industrial South Africa (Pty) Limited
Amitech Karasai Pipe
Amitech Poland Sp zoo
Amitech Saudi Arabia Limited
Amitech South Africa (Pty) Limited
Amitech Spain SA
Amitech USA LLC
Bondstrand Limited (BSL)
Chongqing Tianli Amiantit Materials Engineering Joint Stock Company Limited
(TLA)
Composite Pipe Industries Limited (CPI)
DIFAV Amiantit Limited
Dubai Pipe Factory Company Limited
Fiberglass Pipe Company Limited
Sarplast
Iniziative Industriali SpA
Saudi Arabia Concrete Products Limited (SACOP)
Saudi Arabian Ductile Iron Pipes Company Limited (SADIP)
Subor Boru Sanayi ve Ticaret AS
Saudi Arabian Amiantit Company Group
The Saudi Arabian Amiantit Company Group – Amiantit or SAAC – was
established in 1968 in
Today, the Group is comprised of 34 production plants (majority owned or
joint ventures) in 18 countries around the world. 31 of the plants manufacture
a comprehensive array of pipe products whereas the rest produces rubber
products for seals and air conditioning applications, fiberglass insulation
products for thermal and acoustical applications, fiberglass products,
fiberglass reinforced plastic products, sizing and agents, lining materials
against corrosion, and polyurethane products for pipes and tanks, flooring and
insulation.
The Group’s technology division consists of 6 technology companies –
making Amiantit a world leader in pipe technology.
An extensive global sales and service network ensures that customers in
some 70 countries all over the world have access to the wide range of pipe
systems, technologies and services offered by the Group.
Amiantit is listed on the Saudi Stock Exchange. In 2003, the Group’s turnover was USD
432m, the paid up share capital USD 187m and the market capitalization USD
800m.
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 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.49.97 |
|
|
1 |
Rs.75.45 |
|
Euro |
1 |
Rs.64.21 |
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 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
49 |
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 |
|