MIRA
INFORM REPORT
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Report Date : |
22.10.2008 |
IDENTIFICATION
DETAILS
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Name : |
SANKHYA INFOTECH LIMITED |
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Registered Office : |
1-1-39, 2nd Floor, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
21.07.1997 |
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Com. Reg. No.: |
45396 |
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CIN No.: [Company
Identification No.] |
L72200AP1997PLC045396 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDS18111C |
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PAN No.: [Permanent
Account No.] |
AAECS5855J |
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Legal Form : |
Public limited liability company. Company’s shares are listed on the
Stock Exchange. |
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Line of Business : |
Subject is engaged in providing technology solutions with
a focus on Resource Optimization, Logistics Management & Simulation
software development. |
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 1800000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track.
Director are reported as experienced, respectable and having satisfactory
means of their own. Their trade relations are fair. Profit margin is low.
Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms & conditions. |
LOCATIONS
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Registered Office : |
1-1-39, 2nd Floor, Seven Hills Plaza, S D Road,
Secunderabad – 500 003, Andhra Pradesh, India |
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Tel. No.: |
91-40-27814217 / 66318866 |
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Fax No.: |
91-40-27819191 |
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E-Mail : |
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Website : |
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Branches : |
Located at ·
USA ·
France ·
Abu Dhabi ·
Singapore |
DIRECTORS
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Name : |
Mr. N.Ramakrishna Rao |
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Designation : |
Chairman – Emeritus |
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Name : |
Mr. N R Mohanty |
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Designation : |
Chairman |
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Name : |
Mr. N Srinivas |
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Designation : |
Vice Chairman |
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Name : |
Mr. N Sridhar |
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Designation : |
Managing Director and Chief Executive Officer |
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Name : |
Mr. J Bhadra Kumar |
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Designation : |
Director |
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Name : |
Mr. M Yugandhar |
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Designation : |
Director |
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Name : |
Dr. Sridhar Seshadri |
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Designation : |
Director |
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Date of Appointment : |
26.10.2006 |
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Name : |
Capt. J.R.D. Rao |
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Designation : |
Director |
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Audit Committee : |
·
Dr. Sridhar Seshadri ·
Mr. J Bhadra Kumar ·
Mr. N Srinivas |
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Shareholders / Investors Grievance Committee : |
·
Mr. M Yugandhar ·
Mr. J Bhadra Kumar ·
Dr. Sridhar Seshadri |
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Remuneration Committee : |
·
Mr. N R Mohanty ·
J Bhadra Kumar ·
Dr. Sridhar Seshadri |
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Compensation Committee : |
·
Mr. N Srinivas ·
Mr. N R Mohanty ·
Mr. M Yugandhar |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
|
Category |
Percentage of
Holding |
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Promoters Holding |
35.25% |
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Non-Promoter Holding Private Corporate Bodies |
6.60% |
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Indian Public |
53.16% |
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NRIs/OCBs |
4.99% |
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Total |
100.00% |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in providing technology solutions with a
focus on Resource Optimization, Logistics Management & Simulation
software development. |
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Products : |
·
Computer Based Training ·
Resource Optimizers |
GENERAL
INFORMATION
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No. of Employees : |
180 |
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Bankers : |
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State Bank of India Commercial Branch, Begumpet, Secunderabad ·
Andhra Bank R.P.Road, Secunderabad - 500 003, Andhra
Pradesh, India |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
·
Satyanarayana and Company Chartered Accountants Address : Secunderabad ·
O.M. Kejriwal and Company Chartered
Accountants Bhubaneswar |
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Associates/Subsidiaries : |
·
Sankhya US Corporation, USA ·
Sankhya Information Technologies (India) Private Limited, Secunderabad
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Sankhya Management Services Private Limited |
CAPITAL STRUCTURE
(As on 31.03.2007)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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8500005 |
Equity Shares |
Rs.10/- each |
Rs.85.000
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 |
85.000 |
85.000 |
66.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
280.508 |
219.652 |
138.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
365.508 |
304.652 |
204.800 |
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LOAN FUNDS |
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1] Secured Loans |
60.542 |
55.433 |
61.400 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
60.542 |
55.433 |
61.400 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
426.050 |
360.085 |
266.200 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
138.211 |
121.837 |
79.800 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
58.914 |
29.829 |
67.600 |
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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 |
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9.600 |
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Sundry Debtors |
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65.400 |
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Cash & Bank Balances |
244.064
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213.964 |
49.600 |
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Other Current Assets |
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0.000 |
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Loans & Advances |
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7.000 |
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Total
Current Assets |
244.064
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213.964 |
131.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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11.900 |
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Provisions |
15.139
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5.545 |
0.900 |
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Total
Current Liabilities |
15.139
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5.545 |
12.800 |
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Net Current Assets |
228.925
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208.419 |
118.800 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
426.050 |
360.085 |
266.200 |
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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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Software Income |
262.120 |
152.153 |
129.900 |
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Other Income |
0.976 |
1.381 |
0.200 |
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Total Income |
263.096 |
153.534 |
130.100 |
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Profit/(Loss) Before Tax |
72.376 |
27.578 |
19.600 |
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Provision for Taxation |
1.356 |
0.538 |
0.000 |
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Profit/(Loss) After Tax |
71.020 |
27.040 |
19.600 |
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FOB Value of Export : |
253.012 |
148.202 |
129.939 |
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Expenditures : |
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Employee Cost |
25.186 |
52.889 |
38.900 |
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Manufacturing Expenses |
0.000 |
0.000 |
28.100 |
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Administrative Expenses |
0.000 |
0.000 |
27.000 |
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Operation and Other Expenses |
155.101 |
69.603 |
0.000 |
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Interest and Financial charges |
0.000 |
0.000 |
8.200 |
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Miscellaneous Expenses |
0.000 |
0.000 |
3.200 |
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Power & Fuel |
0.000 |
0.000 |
0.700 |
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Depreciation & Amortization |
10.433 |
3.464 |
4.400 |
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Total Expenditure |
190.720 |
125.956 |
110.500 |
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SUMMARISED RESULTS
|
Year |
31.03.2008 |
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Type |
Full
Year |
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Sales
Turnover |
360.800 |
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Other
Income |
1.200 |
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Total
Income |
362.000 |
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Total
Expenditure |
247.400 |
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Operating
Profit |
114.600 |
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Interest |
10.500 |
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Gross
Profit |
104.100 |
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Depreciation |
9.500 |
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Tax |
4.400 |
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Reported
PAT |
90.200 |
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Dividend
(%) |
12.00 |
QUARTERLY RESULTS
|
Year |
30.06.2008 |
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Type |
1st
Quarter |
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Sales
Turnover |
83.000 |
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Other
Income |
0.300 |
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Total
Income |
83.300 |
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Total
Expenditure |
53.600 |
|
Operating
Profit |
29.700 |
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Interest |
1.400 |
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Gross
Profit |
28.300 |
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Depreciation |
6.400 |
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Tax |
0.500 |
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Reported
PAT |
21.400 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity
Ratio |
0.17 |
0.23 |
0.26 |
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Long
Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Current
Ratio |
3.36 |
2.58 |
2.39 |
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TURNOVER
RATIOS |
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Fixed
Assets |
1.26 |
0.88 |
0.99 |
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Inventory |
7.34 |
8.74 |
5.54 |
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Debtors |
2.51 |
2.03 |
1.18 |
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Interest
Cover Ratio |
12.44 |
6.61 |
3.39 |
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Operating
Profit Margin(%) |
33.88 |
23.6 |
24.79 |
|
Profit
Before Interest And Tax Margin(%) |
29.91 |
21.3 |
21.4 |
|
Cash
Profit Margin(%) |
30.98 |
20.05 |
18.48 |
|
Adjusted
Net Profit Margin(%) |
27.01 |
17.75 |
15.09 |
|
Return
On Capital Employed(%) |
19.95 |
10.35 |
11.37 |
|
Return
On Net Worth(%) |
21.13 |
10.60 |
10.11 |
LOCAL AGENCY
FURTHER INFORMATION
FINANCIAL
HIGHLIGHTS 2006-07
During the
Financial Year 2006-2007, the Company recorded a Total Income of Rs.262.120
millions (out of which export income accounted for Rs.253.012 millions)
compared to Rs.152.153 millions for the previous Financial Year, registering an
impressive growth of 72%. The increase in income was achieved due to vigorous
efforts
put in by the
management team.
The Profit before
Interest, Depreciation and Tax is Rs.87.536 millions compared to Rs.35.641
millions that of previous year resulting in spurt in the Earning per Equity
Share to Rs. 8.36 from Rs.3.90 in the previous year.
OPERATIONS
The Company made
significant achievements during the year under report. The Company successfully
entered into new areas and customers and the Company’s products and services
were received well by large overseas corporations.
OUTLOOK
The Company is
confident of achieving higher sales and profitability by catering to more verticals
and add more new clients. The software products and services developed by the
Company are gaining acceptance and recognition by some of the Fortune 100
companies. The Company has been able to attract and retain the best talent of
professionals to meet its niche areas of operations.
The Directors are
of the opinion that the Subsidiaries of the Company have bright future.
MANAGEMENT’S
DISCUSSION AND ANALYSIS
The Company’s
business grew by 72% in the past one year and has opened several new opportunities
apart from Aviation. Subject’s investments into establishing
strong marketing teams have started giving results and the company has a very
strong Order Book. Subject’s “Silicon Athena” product
suite has received very encouraging enquiries and good orders. The growth in
the coming years is expected to result in higher returns to the customers and
to the company as well. Subject has earned its recognition as
forerunner in the fields of Defense,
Aviation and
Transportation sectors.
REVIEW OF THE
YEARS’ PERFORMANCE:
·
SILICONTM suite is now emerging as a leader in the Learning Management
area.
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Two new clients have been added, one of whom is a renowned professional
institute.
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The Income of the company has gone up by 72% from that of the previous
year
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The Earnings per Share shot up to Rs.8.36 per Equity Share compared to
Rs.3.90 of the previous year.
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Profit before tax of the Company has gone up by 162.44%
FUTURE
DEVELOPMENT:
·
The Company is in the process of strengthening its marketing and sales
team
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The Company has established wholly owned subsidiaries in USA, and India
to cater to the expanding demand for the Company’s products.
·
The Company is able to offer its services and products to a wider and
more verticals.
·
The Company’s products and services are well received and the company
sees a great potential in International markets.
FIXED ASSETS
·
Plant and Machinery
·
Air Conditioners
·
Computers
·
Projector
·
Furniture
·
Vehicles
·
Software Products
- Silicon LMS/QT
- Silicon LCMS
- Sage CRM Server 20
- Flight Dispatcher
- Silicon ATHENA
WEB DETAILS
Profile
Subject’s vision
and foresight have enabled it to be the trendsetter in the innovation of
leading edge technological solutions to the advantage of the customer.
Subject has the vision to be "The leader, in
providing software technology innovations and solutions, for the business
prosperity and pride of ownership to all our customers, employees and
associates".
Subject’s team stands for technology innovation
and process. Together the team and the process have been the cornerstones for subject's
success. With steadfast commitment and indomitable courage subject
has raised the bar for excellence in every facet of its business to a new great
height.
Research including fundamental
research has been a great success at Subject,
several research papers have been published by subject's R
and D team from time to time. The engagement in R and D activity with leading
international organizations is a key contributor both to IPR and business
value.
The ready acceptance of subject's
products and services provides a good testimony to the promise of greater
prosperity and success in the years to come to our customers and associates.
Already an ISO:9001:2000 company, Subject's
mission is to achieve a $25 million turnover with a near Six-Sigma quality over
the next 2 years. Every individual Sankhyaite is committed to accomplishing
this goal. Subject has a distinguished reputation
over the short period of six years. They believe for an everlasting journey
this has just been a warm up and the march to success is yet to begin.
Company Profile
The flavour of
success has always been the same - fresh and exciting, Subject wrote its incorporation text in such a flavor blending them
with technological excellence and corporate ethics.
Incorporated in
July 1997, with a missionary goal of providing world class software products,
and software solutions to the global need, Subject has embarked on humble
mission and in the very first year won accolades from Federal Aviation
Administration for the pioneering work done in the field of web based
learning.. and that was a way back in 1997.
Since then Subject
moved a long way, Fortune 500 clients, highly successful product line, Services
that have received testimonials for impeccable predictability quality and
reliability. Subject has chosen to operate in the
niche segments to be able to grow as a leader in its right. Subject
brand stands for technological excellence with domain strength.
Transportation, Manufacturing and
Oil and Gas sectors have been the torch bearers for the initial success for the
company in both products and services. The choice to bring greater value to the
customer have naturally lead them to chose Resource Optimization, Simulation
and Training and Specialized IT services. These three areas are recognized for
the most significant contributions to the bottom-line and success world over.
Value for the time, intellectual
excellence, prosperity, and engaging in highly challenging missions are just as
common ways that the teams receive its encouragement normally. However, the
company's commitment to share rewards for innovation in technology is a
distinguishing feature in the industry.
Corporate Governance and ethics,
transparency, have been implemented since the inception of the company. The
company's IPO which was oversubscribed by over 300 times is a landmark in the
Indian stock market history and the company is committed to brining greater
value to the shareholder in the years to come. The company has been
consistently profit making since inception.
Domain Focus
True
Differentiator in the IT products and services market is the Domain Strength, Subject
has initially built enormous domain knowledge in three key sectors of
Transportation, Oil and Gas and Manufacturing. Subject also
has rich experience and knowledge in Banking and Insurance and has several
references of its success.
Customers have
immensely benefited from subject's investments in Domain
knowledge. Domain Experts on board have a single mandate to reduce the cost of
ownership to the customer by innovations in process. This results in No startup
time, quick understanding of needs, quick responses and support during business
process re-engineering, shorter development, testing and implementation cycles.
Study conducted by
subject
team and comparing the results with other IT companies have proved that subject's
products and services have directly contributed in savings of over 15% per
man-month for the customers. Less number of bugs and easy maintenance has a
recurring effect on cost savings to all subject
customers.
Domain expertise
is available on full-time basis and would be available during the pre-sales,
process all through to the support and maintenance phases of each engagement.
Domain expertise is also available purely for consulting roles also from time
to time depending on customer's requirements.
Technology Focus
Subject
pro-actively supports customer to select technology for the customer. However, Subject
believes that the customers have the right to choose the technology that they
believe is the best to their current and future growing needs.
Subject's policy for technology is to remain brand
neutral and provide the customer the best technology using the three Aces -
Advice, Access, and Adaptation. These three Aces are the true reflection of subject's
Technology prowess.
To be able to Advice on the choice
of technology, to provide Access to leading edge technology through products
and services, and to provide a smooth Adaptation of emerging technology while
minimizing the cost of ownership and migration.
Subject has a huge resources pool running across
the stretch of the organization in diverse platforms and technologies.
·
J2EE and Microsoft,
·
Oracle and SQL and
·
Multimedia technologies provided by a host of technology
providers.
Subject has made big investments in special IT
sectors such as Smart Card including
·
Java card,
·
Multos and
·
Windows for Smart card.
In the Mobile computing and
communication technology subject has expertise on
·
Windows CE and Tablet PC
·
Symbian
·
Palm and
·
Linux OS
Research and Development activity in
subject
is headed by the Chief Technology Officer who guides both fundamental research
activity and adoption of new and emerging technology.
Technology coupled with domain bound
in strong processes for development, testing, and maintenance activities give
the most formidable advantage to all the customers.
News
Emirates signs contract with Sankhya for 'IT training
system for flight crew'
DUBAI, UAE, 15
December 2003 - Emirates has chosen Indian IT company Sankhya to supply a
comprehensive training management system for its flight crew. The multi-million
dollar deal was signed in Dubai by Dermot Mannion, Emirates' President Group
Support Services, and Sridhar Nadupalli, Managing Director of Sankhya. Mr
Mannion commented: "We are very happy about this agreement with Sankhya to
supply the new management system for our flight crew training".
"With Emirates' ambitious
expansion underway, our requirement for highly-qualified pilots has
accelerated. It's a challenge that this new system will help us meet by
improving flight crew training efficiency. The end result is to make it easier
for us to deliver the planned network growth and be there for our customers on
schedule."
Sankhya engineers will develop the
software for the system for flight training management, curriculum development,
scheduling, grading, and the maintenance of records. In addition, the system
will use a powerful resource optimisation engine, developed exclusively for
Emirates, which also will provide comprehensive planning for short and
long-term training and rapid 'Day of Ops' schedule disruption resolution.
Mr Nadupalli said: "We are very
pleased to have been able to meet the requirements of Emirates' Flight Training
department for their present and future operations. This system is our most
ambitious project to date. We already supply software systems to Emirates and
we certain that this contract will prove mutually beneficial and strengthen our
relationship."
The selection process for awarding
the contract took three years and involved some 20 international IT companies.
The Flight Training Management
Information System will be initiated in early January 2004 and will be entirely
implemented within 3 months. At the end of 18 months, the system will fully
interface with Emirates' 16 existing company-wide IT systems, which will enable
the company to achieve its aim of a 'paperless' environment in line with Dubai
government's initiative.
Modern technology systems using PDA,
Bio-Metric Smart Cards, Interactive mobile computing and communications will
completely eliminate paper in a secure environment. Emirates is already using
Sankhya's SILICON Learning Management System (LMS) with integrated 'Question
and Testing' for both computer-based and Web-based Global Distance Learning
(CBT, WBT) for flight crew.
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.48.83 |
|
UK Pound |
1 |
Rs.85.12 |
|
Euro |
1 |
Rs.65.86 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|