MIRA
INFORM REPORT
|
Report Date : |
02.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
RELIANCE
ENGINEERING ASSOCIATES PRIVATE LIMITED |
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Formerly Known As : |
RELIANCE INFRASTRUCTURE DEVELOPMENT PRIVATE LIMITED |
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Registered Office : |
342, Kharadpada,
Naroli, Near Silvasa, Dadra and Nagar Haveli, Union Territory, India |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
19.11.1991 |
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Com. Reg. No.: |
54-149 |
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CIN No.: [Company
Identification No.] |
U99999DN1991PTC000149 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMR09843B |
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Legal Form : |
Private limited
liability company |
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Line of Business : |
To carry on the
business to construct, acquire, establish, provide, maintain and administer
industrial estates, housing constructions, buildings, roads and bridges,
shopping complexes and centres, recreational facilities such as theatres,
clubs, sports centres, gardens, parks, resorts, medical centres like
hospitals and dispensaries, educational centres like schools and colleges,
other constructions such as parking spaces and warehousing / storage facilities of all kinds. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 49000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and reputed company and part of Reliance Group. The company is
progressing well. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. Fundamentals are
strong and healthy. The company can
be considered normal for business dealings at usual trade terms and conditions.
The company can
be regarded as a promising business partner in a medium to long-run. |
LOCATIONS
|
Registered Office : |
342, Kharadpada,
Naroli, Near Silvasa, Dadra and Nagar Haveli, Union Territory, India |
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Tel. No.: |
91-22-24960418 /
5263 / 61 / 24916000 |
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Fax No.: |
91-22-24981179 |
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E-Mail : |
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Website : |
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Administrative
office |
5th Floor, NKM International House, 178, Backbay Reclamation,
Babubhai Chinai Road, Mumbai - 400 020, Maharashtra, India. |
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Corporate
Office : |
Brindavan, 3rd
Floor, Sr. Premises, Ganpatrao Kadam Marg, Worli, Mumbai - 400 013,
Maharashtra, India Tel. No.
91-22-24916000 Fax No.
91-22-24981179 Dhirubhai Ambani
Knowledge City, Navi Mumbai – 400709, India Tel. No.
91-22-33333333 Fax No.
91-22-27624213 Tel. No.
91-22-22840117 E-mail : customercare@relianceinfo.com Website : http://www.relianceinfocomm.com |
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Branches : |
Located at : 2nd
Floor, NTC House, Narottam Morarjee Road, Ballard Estate, Mumbai - 400 038,
Maharashtra |
DIRECTORS
|
Name : |
Mr. Arukant Girdhardas Dawda |
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Designation : |
Managing Director |
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Address : |
TMC Bunglow No.
11, RPL Township, Village Moikhavdi, Jamnagar-361140, Gujarat, India |
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Date of Birth/Age : |
02.08.1934 |
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Date of Appointment : |
24.12.1999 |
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Name : |
Mr. Balndu Naryan |
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Designation : |
Director |
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Address : |
31, Viraj
Siverene, 321, Hill Road, Bandra ( West), Mumbai-400050, Maharashtra, India |
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Date of Birth/Age : |
18.07.1949 |
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Date of Appointment : |
24.12.1999 |
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Name : |
Mr. Girdhardas Arunkant Dawda |
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Designation : |
Director |
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Address : |
TMC Bunglow No.11, Sector –V, Reliance Greens, Moti Kavadi, Jamnagar –
361140, Gujarat, India |
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Date of Birth/Age : |
02.08.1934 |
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Date of Appointment : |
24.12.1999 |
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Name : |
Mr. Vasant Kumar Betkekar |
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Designation : |
Director |
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Address : |
A/7, Green Acres Bunglows Society, Din-Quary Road, Panjarapol, Deonar,
Chembur, Mumbai – 400088, Maharashtra, India |
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Date of Birth/Age : |
23.05.1958 |
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Date of Appointment : |
27.01.1998 to
28.11.2001 and again w.e.f. 06.04.2002 |
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Name : |
Mr. Virendra Kumar Gandhi |
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Designation : |
Director |
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Address : |
203, Chaitanya Tower, C-Wing, Prabhadevi, Mumbai – 400025,
Maharashtra, India |
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Date of Birth/Age : |
12.10.1955 |
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Date of Appointment : |
27.08.1999 to
15.11.2001 and again w.e.f. 09.07.2002 |
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Name : |
Mr. Balakrishna Narayan Holla |
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Designation : |
Director |
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Address : |
31, Viraj Silverene, 321, Hill Road, Bandra (West), Mumbai – 400050 |
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Date of Birth/Age : |
18.07.1949 |
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Date of Appointment : |
24.12.1999 |
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Name : |
Mr. Madhusudana Shivaprasad Panda |
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Designation : |
Director |
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Address : |
43, Teneriffe, 2A Little Gibbs, Malabar Hills, Mumbai – 400006,
Maharashtra, India |
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Date of Birth/Age : |
11.12.1952 |
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Name : |
Mr. Mihir Kumar Dalal |
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Designation : |
Director |
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Address : |
253, Mandakini Enclave, Kalkaji, New Delhi – 110019 |
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Date of Birth/Age : |
20.09.1945 |
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Date of Appointment : |
30.09.2006 |
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Other Directorship : |
Becrel Engineering Private Limited CIN NO. : U45200MH2006PTC159144 |
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Name : |
Mr. Sandeep Vijay Agarwal |
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Designation : |
Director |
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Address : |
3, Malad Apartment Society, Amand Raod, Malad (West), Mumbai – 400064 |
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Date of Birth/Age : |
02.02.1967 |
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Date of Appointment : |
24.12.2003 |
KEY EXECUTIVES
|
Name : |
Mr. Yogesh Ashin
Vadhwana |
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Designation : |
Company Secretary
|
|
Address : |
Room No. 16, Jitendra
Road, Makrani Pada, Anwar Shekh’s Chawl, Malad (East), Mumbai – 400097 |
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Date of Birth/Age : |
01.11.1981 |
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Date of Appointment : |
27.03.2006 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Xenon Commercial
Private Limited |
|
120000 |
|
Jeevan
Merchandise Private Limited |
|
120000 |
|
Monica Texturing
Private Limited |
|
150000 |
|
Swadee Chemicals
Private Limited |
|
110000 |
|
Paramount
Merchant Bankers Private Limited |
|
100000 |
|
Akashdeep Housing
and Trading Private Limited |
|
50000 |
|
Mkiantra Trading
Private Limited |
|
150000 |
|
Rajvikram
Investments Private Limited |
|
50000 |
|
Sparkle Merchandise Private Limited |
|
150000 |
|
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|
1000000 |
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|
List of
Preferential Shareholders |
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|
|
Luxor Investments Limited |
|
6300000 |
|
Total |
|
6300000 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2007
|
Category |
|
Percentage |
|
Bodies corporate
(not mentioned above) |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
To carry on the business
to construct, acquire, establish, provide, maintain and administer industrial
estates, housing constructions, buildings, roads & bridges, shopping
complexes and centres, recreational facilities such as theatres, clubs,
sports centres, gardens, parks, resorts, medical centres like hospitals and
dispensaries, educational centres like schools and colleges, other
constructions such as parking spaces and
warehousing / storage facilities of all kinds. |
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Imports : |
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Countries : |
v
U.S.A v
Germany v
U.K. v
Israel v
Japan |
GENERAL
INFORMATION
|
No. of Employees : |
100 |
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|
|
Bankers : |
v State Bank of India v HDFC Bank Limited v Bank of Baroda v
Allahbad
Bank, 2, Netaji Subhash Road, Kolkata-700001, West Bengal, India v
Axis Bank
Limited, Trishul 3rd Floor, Opposite Samartheshwar Temple, Law
Garden Ellisbridge, Ahmedabad-380006, Gujarat, India v
Indian Bank,
United India Building, Sir P M Road, Fort, Mumbai-400001, Maharashtra, India |
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Banking
Relations : |
Good |
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Auditors : |
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|
Name : |
Chaturvedi and
Shah Chartered
Accountants |
|
Address : |
714-715, Tulsiani
Chamber, 212 Nariman Point, Mumbai – 400021, Maharashtra, India |
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Tel. No.: |
91-22-22308500 |
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Fax No.: |
91-22-22872703/228456585 |
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|
|
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Associates/Subsidiaries : |
v Reliance Ports and Terminals Limited v Reliance Utilities and Power Limited v Reliance Petroleum Limited v Reliance Telecom Limited v Reliance Leasures Private Limited v Reliance Worldtraders Private Limited v Reliance Strategic Investment Private
Limited v Reliance Agrotech Private Limited v Reliance Entertainment Private Limited v Reliance Energy and Project Development
Private Limited v Reliance Hydrocarbon and Investment
Private Limited v Reliance Consolidated Enterprises Private
Limited v Reliance Paging Private Limited v Reliance Global Management Services
Private Limited v Reliance Detective and Security Consultancy
Services Private Limited v Reliance Communications Maharashtra
Private Limited v Reliance Communications Orissa Private
Limited v Reliance Communications Punjab Private
Limited v Reliance Communications Rajasthan Private
Limited v Reliance Communications Tamil Nadu Private
Limited v Reliance Communications Uttar Pradesh
Private Limited v Reliance Communications West Bengal
Private Limited v Reliance Communications Private Limited v Reliance Communications Andaman and
Nicobar Private Limited v Reliance Communications Andhra Pradesh
Private Limited v Reliance Communications Bihar Private
Limited v Reliance Communications Delhi Private
Limited v Reliance Communications Haryana Private
Limited v Reliance Communications Himachal Pradesh
Private Limited v Reliance Communications Jammu and Kashmir
Private Limited v Reliance Communications Karnataka Private
Limited v Reliance Communications Kerala Private
Limited v
Reliance Communications
Madhya Pradesh Private Limited |
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|
|
|
parent company / holding company |
v Reliance Industries Limited v Reliance Communication Infrastructure
Limited |
CAPITAL STRUCTURE
As on 27.09.2007
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
3500000 |
Equity Shares |
Rs.10/- each |
Rs. 35.000 Millions |
|
6500000 |
Preference Shares |
Rs.10/- each |
Rs. 65.000 Millions |
|
|
Total |
|
Rs. 100.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000 |
Equity Shares |
Rs.10/-
each |
Rs. 10.000 Millions |
|
6300000 |
Preference Shares |
Rs.10/-
each |
Rs. 63.000 Millions |
|
|
Total |
|
Rs. 73.000 Millions |
Debenture Breakup
|
No. of Shares |
Type |
Value |
Amount |
|
11104500 |
Fully Convertible Shares |
Rs.100/- each |
Rs. 11104.500 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
73.000 |
55.000 |
10.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
9769.913 |
1082.189 |
670.915 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
9842.913 |
1137.189 |
680.915 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
9131.380 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
1027.716 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
10159.096 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
20002.009 |
8000.789 |
680.915 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4783.914 |
104.369 |
119.165 |
|
|
Capital work-in-progress |
928.600 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
11798.570 |
5157.172 |
0.451 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
22.404 |
0.000 |
0.000 |
|
|
Sundry Debtors |
678.089
|
459.201 |
669.080 |
|
|
Cash & Bank Balances |
222.280
|
7.103 |
26.041 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
13155.761
|
3846.334 |
2663.644 |
|
Total
Current Assets |
14078.534
|
4312.638 |
3358.765 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
11497.151
|
1197.064 |
2484.499 |
|
|
Provisions |
90.458
|
376.326 |
312.987 |
|
Total
Current Liabilities |
11587.609
|
1573.390 |
2797.486 |
|
|
Net Current Assets |
2490.925
|
2739.248 |
561.279 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.020 |
|
|
|
|
|
|
|
|
TOTAL |
20002.009 |
8000.789 |
680.915 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
6120.670 |
5969.396 |
4082.161 |
|
|
Other Income |
93.130 |
0.000 |
0.000 |
|
|
Total Income |
6213.800 |
5969.396 |
4082.161 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
226.410 |
67.940 |
0.000 |
|
|
Provision for Taxation |
50.100 |
62.630 |
0.000 |
|
|
Profit/(Loss) After Tax |
176.310 |
5.310 |
109.539 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Interest |
0.000 |
0.000 |
0.028 |
|
|
Depreciation & Amortization |
12.410 |
37.800 |
49.992 |
|
|
Other Expenditure |
5974.980 |
5863.656 |
3922.602 |
|
Total Expenditure |
5987.390 |
5901.456 |
3972.622 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
2.83
|
0.09 |
2.68 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.69
|
1.14 |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.91
|
1.54 |
NA |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.02
|
0.06 |
NA |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.21
|
1.38 |
4.10 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.21
|
2.74 |
1.20 |
LOCAL AGENCY
FURTHER INFORMATION
It is in trade
terms with :
v Reliance Infocom Limited
v Mars Dial Net Private Limited
Flat No. 28, Sai Chamber, Sector – II,
C.B.D. Belapur [East], Navi Mumbai, India
v Prumatech Services Limited, Dubai, UAE
v CPV Construction
Bankers Charges
Report as per Registry
|
This form is for |
Creation of
charge |
|
Corporate identity
number of the company |
U99999DN1991PTC000149 |
|
Name of the
company |
RELIANCE ENGINEERING ASSOCIATES PRIVATE LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
342, Kharadpada,
Naroli, Near Silvasa, Dadra and Nagar Haveli, Union Territory, India |
|
Type of charge |
Movable Property |
|
Particular of
charge holder |
Indian Bank,
United India Building, Sir P M Road, Fort, Mumbai-400001, Maharashtra, India |
|
Nature of description
of the instrument creating or modifying the charge |
Deed of
Hypothecation dated 24th June, 2008 in favour of Indian Bank, a
copy of which will be filed as an Addendum. |
|
Date of
instrument Creating the charge |
24.06.2008 |
|
Amount secured by
the charge |
Rs. 1000.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest 9.75% p.a (Fixed) Terms of
Repayment Repayable in six equal
half-yearly installments with the first installment becoming due and
repayable after expiry of twelve months from the date of first disbursement. Margin 25% Extent and
Operation of the charge Hypothecation by
way of first pari passu charge to secure due repayment of Term Loan of Rs.
1000.000 Millions availed from Indian Bank, ranking Pari Passu with charge
created in favour of IDBI bank Limited , Canara Bank and Allahbad Bank |
|
Short particulars
of the property charged |
Movable
Properties, more particularly described in the schedule to the Deed of
Hypothecation dated 24th June, 2008 in favour of Indian Bank,
purchased or acquired or arising out of or related to the Credit Facilities
availed from Indian Bank, IDBI Bank Limited, Canara Bank and Allahbad Bank ,
Save and except book debts. |
HISTORY
Subject was
incorporated on 19th November, 1991 at Mumbai in Maharashtra under
the name and style of Reliance Infrastructure Development Private Limited having
Company Registration Number 64083.
The name of the
company was changed to present with effect from 24th December, 1999.
The Registered
Office of the company has been shifted from Mumbai to Union Territory of Dadra
and Nagar Haveli with effect from 7th March, 2000 and obtained a New
Company Registration Number 149.
BUSINESS
Subject is engaged
in Development of Resources for Optic Fibre Cable Laying Project of ‘Reliance
Infocomm Limited’.
Subject is also
engaged in to carry on the business to construct, acquire, establish, provide,
maintain and administer industrial estates, housing constructions, buildings,
roads & bridges, shopping complexes and centres, recreational facilities
such as theatres, clubs, sports centres, gardens, parks, resorts, medical
centres like hospitals & dispensaries, educational centres like schools
& colleges, other constructions such as parking spaces and warehousing / storage facilities of all
kinds.
It is also engaged
in to construct, establish, fix and erect infrastructure like power plants,
cables, wires, line accelerators, lamps and work for power generation and/or
supply companies.
It also constructs
port and jetties, dry docks, cargo berths, marine terminals, forklifts,
navigational canals, etc.
Generic Names of
the Principal Products/Services of the Company are :
v Services
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime:
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws:
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards:
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.46.96 |
|
UK Pound |
1 |
Rs.83.91 |
|
Euro |
1 |
Rs.66.36 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
59 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|