MIRA
INFORM REPORT
|
Report Date : |
14.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
PONDS EXPORTS
LIMITED |
|
|
|
|
Registered Office : |
New No.18, [Old No.123], G. N. Chetty Road, T. Nagar, Chennai
- 600017, Tamilnadu |
|
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|
Country : |
India |
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|
Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
26.05.1981 |
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|
Com. Reg. No.: |
18-8785 |
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|
CIN No.: [Company
Identification No.] |
U24246TN1981PLC008785 |
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|
TAN No.: [Tax
Deduction & Collection Account No.] |
CHEP05027B |
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|
|
|
Legal Form : |
A Closely Held
Public Limited Liability Company. |
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|
Line of Business : |
Manufacturer of Footwear,
Shoe Uppers and Others. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 320000 |
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary
of Hindustan Lever Limited. The company has some accumulated losses as of
31.12.2007 financials. However, the same does not seem to effect the company
financial positions as it belongs to a very strong group. Payments are
reported as usually correct and as per commitments. In view of the
strong promoters, the company can be considered good for normal business
dealings at usual trade terms and conditions. Mr. Srinivas,
Account Manager declined to part with any details. |
LOCATIONS
|
Registered Office/ Factory : |
New No.18, [Old No.123], G. N. Chetty Road, T. Nagar,
Chennai - 600017, Tamilnadu, India |
|
Tel. No.: |
91-44 -28345505/ 28215065/ 28276005/ 28345528/ 28345507 |
|
Fax No.: |
91-44 -28345516/ 28275840 |
|
E-Mail : |
DIRECTORS
|
Name : |
Mr. Narayanan
Venkateswaran |
|
Designation : |
Chairman cum
Managing Director |
|
Address : |
Flat 19, The Manor, 1 Cenotaph, 2nd Street, Teynampet,
Chennai – 600016, India |
|
Date of Birth/Age : |
29.01.1938 |
|
Date of Appointment : |
01.08.2008 |
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|
|
|
Name : |
Mr. V Ramachadran |
|
Designation : |
Director |
|
Address : |
New No 51, Old No 24, Nungambakkam High Road, Chennai – 600034,
Tamilnadu, India |
|
Date of Birth/Age : |
26.09.1932 |
|
Date of Appointment : |
29.01.2007 |
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|
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|
Name : |
Mr. Balaraman Venkateswaran |
|
Designation : |
Director |
|
Address : |
“Guruguha“ New No. 24, 3rd Floor, Main Road, Kasturba
Nagar, Chennai – 600020, Tamilnadu, India |
|
Date of Birth/Age : |
18.08.1946 |
|
Date of Appointment : |
03.01.2000 |
|
|
|
|
Name : |
Mr. Anoop Kumar Mathur |
|
Designation : |
Director |
|
Address : |
62, Gulita Worli, Sea Face, Mumbai – 400018, Maharashtra, India |
|
Date of Birth/Age : |
22.10.1947 |
|
Date of Appointment : |
29.01.2007 |
|
|
|
|
Name : |
Mr. Neeraj Jain |
|
Designation : |
Director |
|
Address : |
64, Anupam Apartments, Vasundhara Enclave, Delhi – 110096, India |
|
Date of Birth/Age : |
02.02.1962 |
|
Date of Appointment : |
07.11.2002 |
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|
|
|
Name : |
Mr. Thiyagarajan Kumar |
|
Designation : |
Director |
|
Address : |
“SADHANA”, No 85, II Cross, 35th Main, 800 HBCS Layout, BTM
Layout, Bangalore – 560068, Karnataka, India |
|
Date of Birth/Age : |
15.07.1962 |
|
Date of Appointment : |
23.04.2007 |
|
Email : |
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|
|
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|
Name : |
Mr. Debjit Rudra |
|
Designation : |
Director |
|
Address : |
1C, Willow Creasr, 29 6th Main Road, R A Puram, Chennai – 600028,
Tamilnadu, India |
|
Date of Birth/Age : |
05.10.1969 |
|
Date of Appointment : |
23.04.2007 |
|
Email : |
|
|
|
|
|
Name : |
Mr. Ashok Kumar Gupta |
|
Designation : |
Director |
|
Address : |
Padma Park, Flat No.1/2, 1st Floor, Plot No.114, Sector
No.28, Vashi, Navi Mumbai – 400703, Maharashtra, India |
|
Date of Birth/Age : |
21.04.1958 |
|
Date of Appointment : |
23.04.2007 |
|
Email : |
|
|
|
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|
Name : |
Mr. Sundaram Damodaram Nair |
|
Designation : |
Additional Director |
|
Address : |
29-A, Sterling Apartments, 15th Floor, Peddar Road, Mumbai –
400026, Maharashtra, India |
|
Date of Birth/Age : |
16.04.1953 |
|
Date of Appointment : |
01.08.2008 |
KEY EXECUTIVES
|
Name : |
Mr. Srinivasan Raghunathan |
|
Designation : |
Company Secretary |
|
Address : |
Flat No. 94, Jupiter Apartments, Twinstarjupiter Chs, lT. Cuffe
Parade, Mumbai – 400005, Maharashtra, India |
|
Date of Birth/Age : |
15.12.1962 |
|
Date of Appointment : |
07.03.2006 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 28.04.2006)
|
Names of Shareholders |
|
No. of Shares |
|
|
|
|
|
Hindustan Lever Limited |
|
9800141 |
|
Mr. Balaraman V. Venkataratnam |
|
1 |
|
R. Surve / Hindustan Lever Limited |
|
1 |
|
Doom Dooma Tea Company Limited |
|
1 |
|
Lipton Exports Limited |
|
1 |
|
Bon Limited |
|
1 |
|
|
|
|
|
Total |
|
9800146 |
(As on 31.12.2007)
|
Category |
|
Percentage |
|
|
|
|
|
Bodies corporate (not mentioned above) |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Footwear, Shoe Uppers and Others. |
||||||||
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||||||||
|
Products : |
· Sheep
Leather · Cow
Leather · Buff
Leather · Cow
Calf Leather · Buff
Calf Leather · Others(Leather)
· Goat
Leather · Long/Half
Boots (Gents) · Sandals
(Gents) · Casual/Dress
Shoes (Gents) · Casual/Dress
Shoes (Ladies) · Long/Half
Boots (Ladies) · Sandals
(Ladies) · Casual/Dress
Shoes (Children) · Sandals
(Children) · Leather
Shoe Uppers (Gents) · Leather
Boot Uppers (Gents) · Leather
Sandals Uppers (Gents) · Leather
Sandals Uppers (Ladies) · Leather
Boot Uppers (Ladies) · Leather
Shoe Uppers (Ladies) · Other
Components · Leather
Unit Soles · Shoes
(Rubber) · Other
Footwear (Plastic) · Shoes
(Other Materials) · Non
Leather Footwear Compenents · Leather
Shoe Uppers (Children) · Leather
Boot Uppers (Children) · Leather
Sandals Uppers (Children) |
GENERAL
INFORMATION
|
Suppliers : |
· Avanti Leathers · S. K .Leathers · SSK Shoes
Private Limited · Hariram
Chemicals · Noor and Sons · Overseas
Leathers · Pioneer
International · Raasiga Leathers
Private Limited · Amman
Enterprises · Cam Enterprises · Elastic India · Euro Shoe
Components and Company · Euro Labels
Private Limited · Falcon Prints
Private Limited · GTFC Limited · Guru Footwear
Components Private Limited · Jabez India
Limited · Karthikeyan Packings
· Magamayee
Trading Enterprises · Rajeswari
Polymers · Rajendra
Graphics Private Limited · Ranij and
Company · Maulik
Leathercrafts Private Limited · R & E Shoes
Private Limited · Sri Andal Leathers
Private Limited |
|
|
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|
Bankers : |
·
Standard
Chartered Bank 90 M G Road,
Fort, Mumbai – 400001, Maharashtra, India E-Mail : bablusbp@yahoo.com |
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|
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|
Banking
Relations : |
Satisfactory |
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|
|
|
Auditors : |
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|
Name : |
Lovelock and Lewes (N. Ramesh Rajan) Chartered Accountants |
|
Address : |
252, Veer Savarkar Marg, Dadar Mumbai – 400028, Maharashtra, India |
|
|
|
|
Holding Company : |
Hindustan Lever
Limited CIN : U15140MH1933PLC002030 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 Millions |
|
|
|
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|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9800147 |
Equity Shares |
Rs.10/- each |
Rs.98.001 Millions |
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|
|
|
|
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
98.001 |
98.001 |
98.001 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
23.354 |
|
|
4] (Accumulated Losses) |
(34.869) |
(10.189) |
0.000 |
|
|
NETWORTH |
63.132 |
87.812 |
121.355 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
133.442 |
156.253 |
123.879 |
|
|
2] Unsecured Loans |
25.000 |
73.999 |
3.999 |
|
|
TOTAL BORROWING |
158.442 |
230.252 |
127.878 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
221.574 |
318.064 |
249.233 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
45.253 |
44.404 |
46.706 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.050 |
0.050 |
0.050 |
|
|
DEFERREX TAX ASSETS |
25.599 |
26.763 |
0.364 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
187.841
|
262.563
|
234.050
|
|
|
Sundry Debtors |
124.029
|
133.482
|
133.828
|
|
|
Cash & Bank Balances |
0.512
|
18.720
|
17.622
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
58.439
|
49.345
|
37.816
|
|
Total
Current Assets |
370.821
|
464.110
|
423.316
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
216.207
|
217.155
|
208.626
|
|
|
Provisions |
3.942
|
0.108
|
12.577
|
|
Total
Current Liabilities |
220.149
|
217.263
|
221.203
|
|
|
Net Current Assets |
150.672
|
246.847
|
202.113
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
221.574 |
318.064 |
249.233 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2007 |
31.12.2006 |
31.12.2005 |
|
|
Sales Turnover |
875.105 |
1056.682 |
1054.306 |
|
|
Other Income |
2.111 |
3.159 |
1.328 |
|
|
Total Income |
877.216 |
1059.841 |
1055.634 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
(22.173) |
1.137 |
19.901 |
|
|
Provision for Taxation |
2.507 |
4.937 |
10.853 |
|
|
Profit/(Loss) After Tax |
(24.680) |
(3.800) |
9.048 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
NA |
NA |
931.506 |
|
|
Other Earnings |
NA |
NA |
24.899 |
|
Total Earnings |
NA |
NA |
956.405 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
NA |
NA |
176.101 |
|
|
Packing Materials |
NA |
NA |
1.915 |
|
Total Imports |
NA |
NA |
178.016 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
535.845 |
700.843 |
700.709 |
|
|
Purchases made for re-sale |
31.087 |
0.000 |
7.072 |
|
|
Salaries, Wages, Bonus, etc. |
58.058 |
59.577 |
71.853 |
|
|
Payment to Auditors |
0.732 |
0.730 |
0.865 |
|
|
Interest |
23.355 |
17.632 |
10.476 |
|
|
Power & Fuel |
3.910 |
7.492 |
6.504 |
|
|
Other Expenditure |
246.402 |
272.430 |
238.254 |
|
Total Expenditure |
899.389 |
1058.704 |
1035.733 |
|
KEY RATIOS
|
PARTICULARS |
|
31.12.2007 |
31.12.2006 |
31.12.2005 |
|
PAT / Total Income |
(%) |
(2.81)
|
(0.36)
|
0.86
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(0.25)
|
0.11
|
1.89
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(5.33)
|
0.22
|
4.23
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.35)
|
0.01
|
0.16
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
5.99
|
5.10
|
2.88
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.68
|
2.14
|
1.91
|
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets
· Freehold Land
· Buildings
· Plant and
Machinery
· Furniture and Fixture
· Office Equipments
· Motor Vehicles
Form 8 Particular for
creation or modification of charges
|
Corporate
identity number of the company |
L24246TN1981PLC008785 |
|
Name of the
company |
PONDS EXPORTS
LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
New No.18 Old No.123, G. N. Chetty Road, T. Nagar, Chennai
- 600 017, Tamilnadu |
|
This form is for |
Modification of
charge |
|
Type of charge |
Hypothecation |
|
Particular of
charge holder |
Standard
Chartered Bank 90 M. G. Road,
Fort, Mumbai – 400001, Maharashtra, India |
|
Nature or description
of the instrument(s) creating or modifying the charge |
NA |
|
Date of the
instrument creating or modifying the charge |
01.08.2006 |
|
Amount secured by
the charge |
Rs.120.000
Millions |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
First pari passu
charge on stock in trade and book debts rate of interest: as would be
determined by the Bank from time to time. |
|
Short particulars
of the property charged (including location of the property) |
Stock in Trade
present and future wherever situated all present and future Book Debts |
|
Particular of the
present modification |
Charge Holders
address changed from 90 M G Road, Fort, Mumbai – 400001, To 19 Rajaji Salai, Chennai
– 600001 Credit Facilities Increases from Rs.120.000 Millions to Rs.200.000
Millions |
ABRIDGED BALANCE SHEET
HINDUSTAN LEVER LIMITED (CONSOLIDATED)
|
SOURCES
OF FUNDS |
|
31.12.2004 |
31.12.2003 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
2201.244 |
2201.244 |
|
|
2] Share
Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
|
19178.929 |
19558.931 |
|
|
4] (Accumulated
Losses) |
|
0.000 |
0.000 |
|
NETWORTH
|
|
21380.173 |
21760.175 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
14673.809 |
16108.065 |
|
|
2] Unsecured
Loans |
|
1368.732 |
1043.744 |
|
TOTAL BORROWING
|
|
16042.541 |
17151.809 |
|
|
DEFERRED TAX
LIABILITIES |
|
0.000 |
0.000 |
|
|
Minority Interest
|
|
106.530 |
132.216 |
|
|
|
|
|
|
|
TOTAL
|
|
37529.244 |
39044.200 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
|
16055.956 |
15579.446 |
|
Capital work-in-progress
|
|
1040.876 |
756.038 |
|
|
|
|
|
|
|
INVESTMENT
|
|
22001.528 |
24783.971 |
|
DEFERREX TAX ASSETS
|
|
2270.849 |
2663.871 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
|
15588.276 |
14898.304 |
|
|
Sundry Debtors
|
|
5694.098 |
5270.409 |
|
|
Cash & Bank Balances
|
|
7815.279 |
8923.967 |
|
|
Other Current Assets
|
|
510.460 |
723.709 |
|
|
Loans & Advances
|
|
5711.333 |
6291.541 |
Total Current Assets
|
|
35319.446 |
36107.930 |
|
Less : CURRENT
LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
|
27460.899 |
27214.655 |
|
|
Provisions
|
|
11698.512 |
13632.401 |
Total Current Liabilities
|
|
(39159.411) |
(40847.056) |
|
Net Current Assets
|
|
(3839.965) |
(4739.126) |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
|
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
|
37529.244 |
39044.200 |
|
PROFIT & LOSS ACCOUNT
HINDUSTAN LEVER LIMITED (CONSOLIDATED)
|
PARTICULARS |
|
31.12.2004 |
31.12.2003 |
Sales Turnover [including other
income]
|
|
109018.108 |
112687.725 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
|
11405.065 |
17003.493 |
Provision for Taxation
|
|
608.071 |
244.993 |
Profit/(Loss) After Tax
|
|
12013.136 |
16758.500 |
|
|
|
|
|
Expenditure
|
|
(94399.960) |
(91099.377) |
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 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.48.14 |
|
UK Pound |
1 |
Rs.82.73 |
|
Euro |
1 |
Rs.65.63 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
56 |
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 |
|