MIRA
INFORM REPORT
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Report Date : |
29.11.2008 |
IDENTIFICATION DETAILS
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Name : |
DESAI FRUITS AND VEGETABLES PRIVATE LIMITED |
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Formerly Known As : |
DESAI COLD STORAGE PRIVATE LIMITED |
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Registered Office : |
Photo No. 49, At and Po Amadpore, N H No. 8, Navsari – 396445, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
02.02.1999 |
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Com. Reg. No.: |
035377 |
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CIN No.: [Company
Identification No.] |
U63020GJ1999PTC035377 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
SRTD00309B |
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PAN No.: [Permanent
Account No.] |
AABCD0223G |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Exporter of Fruit and Vegetables |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Maximum Credit Limit : |
USD 85000 |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track. Its
profitability is under severe pressure having good amount of accumulated
losses. No complaints have been heard from market sources till date. The company can be considered for small to mediocre business dealings.
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INFORMATION DECLINED BY
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Name : |
Mr. Rohan Desai |
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Designation : |
H R Manager |
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Date : |
27.11.2008 |
LOCATIONS
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Registered Office : |
Photo No. 49, At and Po Amadpore, N H No. 8, Navsari – 396445, |
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Tel. No.: |
91-2637- 281547/ 281548/ 573079 |
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Mobile No.: |
91- 9998022520 (Mr. Mohan Desai) |
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Fax No.: |
91-2637- 2637281546 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Sales Office 1: |
B- 1061/ 1062, |
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Tel. No.: |
91- 22- 65230839 |
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Fax No.: |
91- 22- 28578825 |
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E-Mail : |
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Dammstrasse 19, Postfach, 6301 Zug, Swizerland |
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Tel. No.: |
+41- 41- 7232393 |
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Fax No.: |
+41- 41- 7232379 |
DIRECTORS
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Name : |
Mr. Ajit J Desai |
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Designation : |
Director |
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Address : |
House No.426, At. Amadpore, Navsari - 396454 |
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Date of Birth/Age : |
19.06.1960 |
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Date of Appointment : |
22.03.2001 |
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Name : |
Mr. Ronjeet Singh Pal |
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Designation : |
Director |
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Address : |
Dr. Med Boris Nitche – 8810, Horgen, Swizerland |
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Date of Birth/Age : |
21.01.1969 |
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Date of Appointment : |
31.03.2006 |
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Name : |
Mr. Timm Degenhardt Robert |
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Designation : |
Director |
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Address : |
Tannenriedstrasse 28810, |
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Date of Birth/Age : |
05.01.1969 |
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Date of Appointment : |
31.03.2006 |
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Name : |
Mr. Pankaj Khandelval |
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Designation : |
Director |
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Address : |
1 B – 702, Raheja Nest, Chandivali Farm Road, Chandiali, Mumbai –
400072, Maharashtra, India |
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Date of Birth/Age : |
08.02.1974 |
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Date of Appointment : |
12.05.2006 |
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Name : |
Mrs. Meenaben A Desai |
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Designation : |
Director |
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Address : |
House No 426, At Amadpore, Navsari- 396445 |
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Date of Birth/Age : |
22.04.1964 |
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Date of Appointment : |
02.02.1999 |
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Name : |
Mr. Nikulraj j Desai |
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Designation : |
Director |
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Address : |
House No. 426, At Amadpore, Navsari- 396445 |
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Date of Birth/Age : |
28.10.1954 |
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Date of Appointment : |
02.02.1999 |
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Name : |
Mr. Bachubhai C Patel |
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Designation : |
Director |
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Address : |
At and |
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Date of Birth/Age : |
08.05.1943 |
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Date of Appointment : |
15.10.2002 |
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Name : |
Mr. Amit Patel |
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Designation : |
Director |
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Address : |
At and |
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Date of Birth/Age : |
22.06.1976 |
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Date of Appointment : |
15.10.2002 |
KEY EXECUTIVES
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Name : |
Mr. Rohan Desai |
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Designation : |
H R Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 29.09.2007
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Names of Shareholders |
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No. of Shares |
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Contract Farming India AG |
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625971 |
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Mr. Ajit Desai |
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124424 |
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Mr. Jayantilal Desai (HUF) |
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98500 |
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Mr. Nikul Desai |
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81401 |
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Mrs. Kokilaben Desai |
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29000 |
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Mrs. Meena Desai |
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26001 |
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Contract Farming Mauritius Private Limited |
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852557 |
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Total |
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1837854 |
AS ON 29.09.2007
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Directors or relatives of directors |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Exporter of Fruit and Vegetables |
GENERAL INFORMATION
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Bankers : |
State Bank of Saurashtra, Nr. Gadkari Chowk, Opp. Rambai Matani Pole,
Navsari - 396445, |
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Facilities : |
Note: loan from bank are secured by Term loan of Rs.5.950 millions was taken from state bank of saurashtra
in july 2004 and the same is secured by mortgage and charge on all the
company’s movable assets and hypothecation of movable properties include
movable machineries, tools, plant accessories etc. (save and expect book
debts) both present and future which has been and which shall be created and
also secured by personal guarantee of directors of the company. The working capital loan of Rs.5.000 Millions has been taken from
State Bank of Saurashtra toward contract farming and same is secured against
stock of agricultural inputs used by farmers and receivables from farmers
with whom contract farming agreement ware made. The working capital loan of Rs.15.000 Millions taken from State Bank
of Saurashtra toward working capital funds. The same is secured against
foreign bills, and inventory of stocks held by the company.
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
JMN Associates Chartered Accountant |
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Address : |
JMN House, Opp. Bombay House, Ashan Nagar, Navsari – 396445, |
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Tel. No.: |
91-2637- 250232 |
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Fax No.: |
91- 2637- 247402 |
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Associates/Subsidiaries : |
Fast Maker Foods Private Limited |
CAPITAL STRUCTURE
AS ON 29.09.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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2000000 |
Equity Shares |
Rs. 10/- Each |
Rs.20.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1837854 |
Equity Shares |
Rs. 10/- Each |
Rs.18.378 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 |
18.378 |
9.898 |
9.898 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
62.418 |
10.698 |
10.698 |
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4] (Accumulated Losses) |
(63.597) |
(16.701) |
(5.873) |
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NETWORTH |
17.199 |
3.895 |
14.723 |
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LOAN FUNDS |
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1] Secured Loans |
21.445 |
21.616 |
24.229 |
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2] Unsecured Loans |
3.345 |
14.122 |
2.492 |
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TOTAL BORROWING |
24.790 |
35.738 |
26.721 |
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DEFERRED TAX LIABILITIES |
0.377 |
0.802 |
0.563 |
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TOTAL |
42.366 |
40.435 |
42.007 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
16.665 |
16.285 |
17.613 |
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Capital work-in-progress |
2.871 |
0.000 |
0.000 |
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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 |
4.986
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3.042 |
3.998 |
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Sundry Debtors |
26.355
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24.781 |
23.094 |
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Cash & Bank Balances |
0.594
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0.412 |
0.674 |
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Other Current Assets |
0.098
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0.054 |
0.000 |
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Loans & Advances |
2.907
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6.754 |
5.505 |
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Total
Current Assets |
34.940
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35.043 |
33.271 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
22.878
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10.772 |
8.887 |
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Provisions |
0.102
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0.130 |
0.000 |
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Total
Current Liabilities |
22.980
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10.902 |
8.887 |
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Net Current Assets |
11.960
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24.142 |
24.384 |
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MISCELLANEOUS EXPENSES |
10.870 |
0.008 |
0.010 |
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TOTAL |
42.366 |
40.435 |
42.007 |
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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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Total Income |
87.307 |
68.217 |
73.282 |
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Profit/(Loss) Before Tax |
(47.320) |
(10.588) |
(2.454) |
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Provision for Taxation |
(0.425) |
0.239 |
0.182 |
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Profit/(Loss) After Tax |
(46.895) |
(10.827) |
(2.636) |
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Expenditures : |
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Depreciation & Amortization |
2.196 |
2.215 |
2.547 |
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Other Expenditure |
132.431 |
76.590 |
73.189 |
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Total Expenditure |
134.627 |
78.805 |
75.736 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
(53.71)
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(15.87) |
(03.59) |
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Net Profit Margin (PBT/Sales) |
(%) |
(54.19)
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(15.52) |
(03.34) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(86.86)
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(20.62) |
(04.82) |
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Return on Investment (ROI) (PBT/Networth) |
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(2.75)
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(2.71) |
(0.16) |
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Debt Equity Ratio (Total Liability/Networth) |
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2.77
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6.63 |
2.41 |
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Current Ratio (Current Asset/Current Liability) |
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1.52
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3.21 |
3.74 |
LOCAL AGENCY FURTHER INFORMATION
FORM NO 8
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This form is for |
Modification of
charge |
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Charge
identification number of the modified |
90102545 |
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Corporate
identity number of the company |
U63020GJ1999PTC035377 |
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Name of the
company |
DESAI FRUITS AND VEGETABLES PRIVATE LIMITED |
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Address of the
registered office or of the principal place of business in |
Photo No. 49, At and Po Amadpore, N H No. 8, Navsari – 396445, |
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Type of charge |
Book Debts Movable Property
(not being pledge) Floating Charge Others |
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Particular of
charge holder |
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Nature of
description of the instrument creating or modifying the charge |
A Working Capital 1) Supplementary agreement for the grant of SIA and Hypo. Of movable, book
debts and others assets WC Finance 2) Agreement of hypothecation of goods, book debt and other assts 3) Agreement of Receivable and Bills 4) Agreement for Pledge of Goods, Movable and Other Assets 5) Terms and Conditions B TERM LOAN 1) Suppl. Agreement for the grant of MT Advance to SSI Hypo. Of
Movables, Book Debts and Others 2) Agreement for MTL against Pledge of movable machinery |
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Date of
instrument Creating the charge |
27.09.2007 |
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Amount secured by
the charge |
Rs.62.585
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest 1) working capital including ACC and Contract
farming @ 1.50% below SBS PLR, ie, 11.75% p.a. with monthly rests. On EPC as
per extent instructions of the bank 2) Term loan including existing TL
outstanding @1.50% below SBS PLR, ie, 11.75% p.a. with monthly rests Terms of
Repayment Working capital
including ACC, AC for contract farming and EPC are repayable on demand Term loan
including existing TL outstanding to be repaid in such installments and in
such manner as may be prescribed by the bank from time to time. Margin The borrower
shall margin of security as may be determined by the bank from time to
time Extent and
Operation of the charge The charge on
assets described herein namely, all current assets of stock, book debts and
receivable including export receivable and other current assets and all the
movable plant and machinery and other such movables present and future shall
rank as exclusive first charge in favor of the bank. |
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Short particulars
of the property charged |
WORKING CAPITAL All present and
future goods of raw material, stock in process and finish goods including stock
of agriculture produce under contract farming, book debt included receivable
of EPC, movable and others assets such as o/s money, claims, invoices,
documents, securities, investments TERM LOAN All present and
future goods, machineries, book debts, movable and other assets of the
borrower including documents of titles to the goods, claims, bills, invoices
etc. |
PERFORMANCE
During the year the result were quite better than of last year with respect
to local turnover made. The company could achieve sales turnover of Rs.87.300
Millions compare to Rs.68.200 Millions in the previous year. The company has
taken initiative to make suitable tie up to improve variety of products. i.e.
fruit and vegetable. However the fact remain that the company has taken
initiative to make suitable tie up to improve variety of products. i.e. fruit
and Vegetable. However the fact remain that the company has made cash loss of
Rs.45.124 Millions. The loss has been booked mainly due to write off of bad
debts to the tune of Rs.11.981 Millions and rise in overheads, due to business
revamping.
FUTURE PROSPECTS AND OUTLOOK OF THE COMPANY
The director believed, on the basis of the
feed back of customers and trends available from the domestic and international
market, that the year to come i.e. 2007/ 08 should be good, and the company
should be able to perform better because large export orders are in hand as
well as encouraging inquiries are solicited, witch can turn into large volume
of the export business. There is an unfluctuating demand of fresh fruits and
vegetable in the international market as well as domestic market by boosting
sales. During financial year 2007/ 08, the company has taken up to contract
farming project at Zagadla, for Cavandish Banana in consultation with quantum
green agree services, Philippines. Step are being taken to ensure quality
product and improve produce of fruit and vegetable so that risk in expert sales
can be achieved by pushing quality product in international market. The
directors are looking forward to turn around into profitability in the year
2007- 2008.
MANAGEMENT
Ajit Desai, Managing Director
Ajit Desai is a dynamic, visionary farmer and has been very aggressive
in promoting and implementing scientific farming. A leader of farmers, he is a
man of vision and action. Ajit Desai has along with his brother Nikul Desai set
up a state-of-the-art pack house for fresh fruits & vegetables at Navsari
in the state of Gujarat that is today known to be the best for fresh fruit
& vegetables in
Pankaj Khandelwal, CEO
Pankaj Khandelwal, CEO grew up in India and holds a
Bachelors degree in Computer Science and Engineering from the prestigious
Indian Institute of Technology (IIT), Kanpur. After working as a software
engineer at VeriFone
Nikul Desai, COO
Nikul has been associated with farming for over 20 years as
a grower, processor and trader. His vast knowledge of farming is the
cornerstone of DFV operations. As the head of operations of DFV, Nikul is
responsible for procurement, processing and “production” of fresh fruits and
vegetables. Nikul holds a Bachelors degree in Arts.
BOARD
Ajit Desai, Chairman
Ajit Desai is a dynamic, visionary farmer and has been very
aggressive in promoting and implementing scientific farming. A leader of
farmers, he is a man of vision and action. Ajit Desai has along with his
brother Nikul Desai set up a state-of-the-art pack house for fresh fruits &
vegetables at Navsari in the state of Gujarat that is today known to be the
best for fresh fruit & vegetables in
Ron S. Pal, Vice Chairman
Ron S. Pal grew up in Asia, Europe and the
Timm Diegenhardt, Director
Timm Degenhardt joined Orange
PRODUCT
DFV
provides a wide range of high quality tropical fruits and vegetables. The
product portfolio includes over 10 types of fruits and 30 types of vegetables.
However, the key focus of DFV over the years has been on four key products:
Banana, Mango, Pomegranate and Grapes.
These
flagship products contribute over 90% of the total sales. DFV has built a
strong reputation in these products due to continued investment in natural
technology, environment-friendly research and improved work-practices.
With a
group of over 2500 small and medium sized farmers, DFV has created an
eco-system that provides natural and fresh fruits and vegetables. These
products are hand-picked, processed in a world-standard packing line, stored
and packed in a clean environment, passed through stringent quality checks and
transported in temperature-controlled environment. This value-chain ensures
that the products that reach customers are fresh and juicy.
Additionally,
through a revolutionary contract farming mechanism, DFV controls the inorganic
inputs, technology and work-practices at the farm level to ensure that the
product is absolutely natural and safe. The model has been so successful that
DFV has a wait list of over 800 farmers waiting to be included in its program.
DFV
works along with its customers to create specialized, customized solutions in
order to deliver quality as well as cost and time efficiencies.
INFRASTRUCTURE
State-of-the-art infrastructure
for transportation, cold chain and processing is critical to ensure high
quality and consistent supply of perishable commodities like fruits and
vegetables. An estimated 30% of
Desai Fruits and
Vegetables has been conscious of the importance of superior infrastructure from
its inception. There has been single-minded focus on creating and maintaining
infrastructure at DFV. As a result, one of the most modern and state-of-the-art
packhouses has been developed, innovative trailer designs have been created for
smooth transportation, reefer vans have been bought and pre-cooling, cold
storage and processing facilities have been enhanced.
Infrastructure is
the backbone of DFV operations and is the most important factor in ensuring
that customers receive fresh and juicy fruits and vegetables on time, every
time and around the world.
INDIAN BANANA SETS SAID FOR
May 9th, 2008 - 10:11 pm ICT by admin –
Jaghadiya (Gujarat), May 9 (IANS) India’s banana exports
crossed a new milestone Friday when a container load of the fruit bound for
Jeddah left this industrial town in Gujarat’s Bharuch district. About a
thousand farmers, who produced the fruit on a contract basis for Desai Fruits and
Vegetables Private Limited (DFV), cheered as the 18-tonne special reefer
container moved out from the company’s cold storage complex. The consignment is
being sent as part of a multi million-dollar contract signed with
“This is in effect the 51st container which is going. The previous 50 containers were sent on a trial basis,” said P.K. Khandelwal, CEO of DFV.
Bananas were till now exported through merchant exporters and this is the first time a container load is being shipped away.
The company is planning to dispatch container loads of
fruits to seven more countries within a month. With this,
A large retailer in
DFV, founded in 2001 by Ajit Desai, a Gujarat farmer,
pioneered banana exports from
Desai has created
DFV has a model farm where a tree yields 35 kg per plant compared to the normal output of 17 kg in others.
Desai said: “DFV assures a promise of a minimum price and underwrites initial investment in seeds. Then there is a central labour bank for specific harvesting and post-harvesting of banana cultivation. Any of our contract farmers can ask for skilled labour from this bank.”
Apart from assured income, the Desai farm-certified farmers
are getting a taste of hi-tech and best practices. Desai has converted
migrating tribal villagers in
The company operates at international best practice
benchmarks and has cultivated for itself a good customer base including
supermarkets as well as leading importers, distributors in Europe, the
DFV’s 2007 turnover was close to $8 million. The company’s
equity holding is in the nature of 80:20. While 80 percent is owned by Contract
Farming India, a firm based in
Fixed Assets
- Building
- Eicher Tempo
- Crates and Bins
- Fax Machine
- Furniture and Fixture
- Computer
- Scale Machine
- Water Tank
- Land and Amadpore
- Submersible Pump
- Air Conditioner
- Electric Installations
- EPBX Systems
- Mobile Phone
- Plant and Machinery
- Strapping Machine
- Tools and Equipments
- Television Sets
- Vaccume Cleaner
- Motor Cycle (Bajaj)
- Digitale Inverter
- Motor Cycle (Honda)
- Motor Cycle (TVS)
- Simputer
- Tailor
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.49.84 |
|
|
1 |
Rs.76.81 |
|
Euro |
1 |
Rs.64.38 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
26 |
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 |
|