MIRA
INFORM REPORT
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Report Date : |
27.10.2008 |
IDENTIFICATION DETAILS
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Name : |
PREMIER INDIA BEARINGS LIMITED |
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Registered Office : |
413, Marshall House 25, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
03.10.1988 |
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Com. Reg. No.: |
21-45316 |
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CIN No.: [Company
Identification No.] |
L27109WB1988PLC045316 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALP00508E |
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Legal Form : |
A Closely Held Publik Limited Liability Company |
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Line of Business : |
Importers, Traders and Distributors of bearings and accessories. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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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 710000 |
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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 and reputed company having fine track. Directors are reported as experienced, respectable and resourceful businessmen. Their trade relations are fair. Financial position is good. Payments are correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office/ Head Office: |
407 and 413, Marshall House 25, |
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Tel. No.: |
91-33-22201926 |
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Fax No.: |
91-33-22485745 |
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E-Mail : |
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Website : |
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Area : |
800 sq. fts. (Owned ) |
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Location : |
Commercial |
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Warehouse : |
469, Marshall House, 25, |
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Area : |
200 sq. fts. (Owned) |
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Location : |
Commercial |
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Branches : |
Located at: ·
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Gurgaon Office, Norh Region ·
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Chennai Office, South Region ·
Mumbai Office, West Region |
DIRECTORS
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Name : |
Mrs. Laxmi Devi Chindala |
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Designation : |
Director |
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Address : |
87, Southern Avenue, |
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Date of Birth/Age : |
17.01.1957 |
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Date of Appointment : |
15.09.2003 |
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Name : |
Mr. Santosh Choraria |
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Designation : |
Director |
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Address : |
35, |
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Date of Birth/Age : |
03.05.1957 |
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Name : |
Mr. Chain Roop Chindalia |
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Designation : |
Director |
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Address : |
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Date of Birth/Age : |
23.02.1956 |
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Qualification : |
B. Com. (Hons.) |
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Experience : |
25 years |
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Date of Appointment : |
27.04.1989 |
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Name : |
Mr. Surendra Kumar Choraria |
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Designation : |
Director |
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Address : |
Tirumala Apartment, 35, |
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Date of Birth/Age : |
31.05.1955 |
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Qualification : |
B. Com. (Hons.) |
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Experience : |
25 years |
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Date of Appointment : |
30.01.1989 |
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Name : |
Mr. Vijay Kumar Sethia |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Chain Roop Chindalia |
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Designation : |
Chief Executive Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2007
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Names of Shareholders |
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No. of Shares |
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Prakash Chan Golcha |
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100 |
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Chindalia Roop Chain (HUF) |
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18300 |
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Gautam Choraria |
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16100 |
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Tater Jatan |
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30000 |
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Khushboo Bararia |
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800 |
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Laxmidevi Chindalia |
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22600 |
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Manju Sethia |
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5100 |
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Neeru Patwari |
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3000 |
Equity Share Breakup (Percentage of Total Equity)
As on 30.09.2007
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Category |
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Percentage |
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Bodies corporate (not mentioned above) |
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87.39 |
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Directors or relatives of directors |
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8.38 |
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Other top fifty (50) shareholders (other than listed above) |
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4.23 |
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Total |
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100.00 |
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BUSINESS DETAILS
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Line of Business : |
Importers, Traders and Distributors of bearings and accessories. |
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Products : |
Ø Ball Bearings Ø Spherical Roller Bearings Ø Taper Bearings Ø Cylindrical Bearings Ø Thrust Bearings Ø
Needle Roller Bearings Ø
Unit Bearings Ø
Rolling and Plain Bearings Ø
Linear rolling bearings and linear plain
bearings |
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Brand Names : |
“SKF” |
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Agencies Held : |
SKF Bearings India Limited (upto
31/12/2002) |
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Imports : |
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Countries : |
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Terms : |
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Selling : |
Credit (30 to 60 days) |
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Purchasing : |
Credit (30 to 60 days), L/C or CAD |
GENERAL INFORMATION
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Customers : |
Manufacturers and Government
Bodies Ø
Arihant Spinning
Mills Limited Ø
Ambuja Cement
Eastern Limited Ø
The Associated
Cement Companies Limited Ø
Ballarpur Industries
Limited Ø
Balrampur Chini
Mills Limited Ø
The Ø
Coal India Limited
& its' subsidiaries Ø
Empee Sugar Limited Ø
Essar Steel Limited Ø
Hindustan Copper
Limited Ø
Hindustan Newsprint
Limited Ø
Hindustan Paper
Corporation Limited Ø
Hindustan Petroleum
Corporation Limited Ø
Hindustan Zinc
Limited Ø
HMP Sugar Limited Ø
IBP Company Limited Ø
India Cement Limited Ø
Indian Oil
Corporation Limited Ø
Jayashree Textiles
Limited Ø
Jindal Vijaynagar
Steel Limited Ø
Jindal Iron and
Steel Company Limited Ø
Kalyanpur Cements
Limited Ø
Lafarge India
Limited Ø
Larsen and Toubro
Limited Ø
Lloyd Steel
Corporation Limited Ø
Madras Cement
Limited Ø
Mahabir Spinning
Mills Limited Ø
National Thermal
Power Corporation Limited Ø
Oil and Natural Gas
Corporation Limited Ø
Orient Paper and
Industries Limited Ø
Punjab Sugar
Federation Limited Ø
Shakthi Sugar
Limited Ø
State Electricity
Boards Ø
Seshasayee Paper
Mills Limited Ø
Steel Authority of
India Limited Ø
Tamilnadu Newsprint
Limited Ø
The Tata Iron and
Steel Company Limited Ø
Uranium Corporation
of India Ø Vishnu Sugar Limited |
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No. of Employees : |
20 |
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Bankers : |
Bank of Baroda, International Business Branch, 4, India Exchange
Place, Kolkata-700001, West Bengal, India |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
V K Patawari and Company Chartered Accountant |
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Address : |
33, Brabourn Road, Kolkata-700001, West Bengal, India |
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Associates/Subsidiaries : |
Ø
Hi-Tech Bearings
Private Limited 25, K.
H. Road, Bangalore - 560 027, Karnataka, India Tel.
No. 91-80-2224122 / 2872 Fax No.
91-80-2993622 E
Mail: hitech@bgl.vsnl.net.in
/ htbl@vsnl.com
Traders
of bearings Ø
Time Bearing
Corporation Manjushree Market, P. O.
Kanjanchak, Durgachak, Haldia - 721 602, Orissa, India Ø
Phoenix Trading
Corporation 408,
Marshall House, 25, Strand Road, Kolkata – 700 001, West Bengal Traders of bearings |
CAPITAL STRUCTURE
As on 30.09.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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6000000 |
Equity Shares |
Rs. 10/- each |
Rs. 60.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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988900 |
Equity Shares |
Rs. 10/-
each |
Rs. 9.889
Millions |
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4470450 |
Equity Shares Issued on Amalgamation to the erstwhile
shareholders of Sidh Tradefina Limited Fully paid |
Rs. 10/-
each |
Rs. 44.705
Millions |
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394664 |
Equity Shares Issued on amalgamation to the erstwhile
shareholders of Skyzoom Merchants Private Limited fully paid up for
consideration other than cash |
Rs. 10/-
each |
Rs. 3.947
Millions |
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Total |
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Rs. 58.540 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 |
58.540 |
58.540 |
58.540 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
84.816 |
84.000 |
83.206 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
143.356 |
142.540 |
141.746 |
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LOAN FUNDS |
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1] Secured Loans |
14.547 |
15.202 |
5.432 |
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2] Unsecured Loans |
0.222 |
10.222 |
0.222 |
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TOTAL BORROWING |
14.769 |
25.424 |
5.654 |
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DEFERRED TAX LIABILITIES |
0.076 |
0.025 |
0.000 |
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TOTAL |
158.201 |
167.989 |
147.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
7.432 |
7.927 |
7.728 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
2.926 |
2.472 |
1.203 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.018 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
86.800
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64.844 |
46.184 |
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Sundry Debtors |
173.034
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166.750 |
133.255 |
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Cash & Bank Balances |
9.285
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12.824 |
31.650 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
9.278
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5.418 |
6.110 |
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Total
Current Assets |
278.397
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249.836 |
217.199 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
127.519
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89.680 |
76.907 |
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Provisions |
3.035
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2.578 |
1.871 |
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Total
Current Liabilities |
130.554
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92.258 |
78.778 |
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Net Current Assets |
147.843
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157.578 |
138.421 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.012 |
0.030 |
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TOTAL |
158.201 |
167.989 |
147.400 |
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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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Sales Turnover |
495.436 |
374.086 |
288.294 |
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Other Income |
0.786 |
1.118 |
0.800 |
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Total Income |
496.222 |
375.204 |
289.094 |
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Profit/(Loss) Before Tax |
2.948 |
2.677 |
1.810 |
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Provision for Taxation |
2.132 |
1.883 |
1.131 |
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Profit/(Loss) After Tax |
0.816 |
0.794 |
0.679 |
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Expenditures : |
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Purchases made for re-sale |
450.930 |
337.989 |
260.354 |
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Salaries, Wages, Bonus, etc. |
9.171 |
6.918 |
5.142 |
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Managerial Remuneration |
1.410 |
1.205 |
0.720 |
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Payment to Auditors |
0.066 |
0.056 |
0.060 |
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Interest |
1.825 |
1.188 |
0.084 |
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Insurance Expenses |
0.479 |
0.380 |
0.384 |
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Power & Fuel |
0.000 |
0.000 |
0.000 |
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Depreciation & Amortization |
2.085 |
2.077 |
1.751 |
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Other Expenditure |
27.308 |
22.714 |
18.789 |
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Total Expenditure |
493.274 |
372.527 |
287.284 |
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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 |
(%) |
0.16
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0.21 |
0.23 |
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Net Profit Margin (PBT/Sales) |
(%) |
0.60
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0.72 |
0.62 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
1.03
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1.04 |
0.80 |
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Return on Investment (ROI) (PBT/Networth) |
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0.02
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0.01 |
0.01 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.01
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0.83 |
0.59 |
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Current Ratio (Current Asset/Current Liability) |
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2.13
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2.71 |
2.76 |
LOCAL AGENCY FURTHER INFORMATION
Bankers Charges
Report as per Registry
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This form is for |
Modification of
charge |
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Charge
identification number of the modified |
8003413 |
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Corporate
identity number of the company |
L27109WB1988PLC045316 |
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Name of the
company |
PREMIER INDIA BEARINGS LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
413, Marshall
Hose 25, Strand Road, Kolkata, West Bengal, India |
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Type of charge |
Immovable Property
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Particular of
charge holder |
Bank of Baroda, International Business Branch, 4, India Exchange
Place, Kolkata-700001, West Bengal, India |
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Nature of
description of the instrument creating or modifying the charge |
Supplemental
Memorandum of Entry |
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Date of
instrument Creating the charge |
21.06.2007 |
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Amount secured by
the charge |
Rs. 173.500
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Interest and other
charges will be paid as per terms and conditions of Sanction Letter, however
the same is subject to change from time to time. Terms of
Repayment The working
Capital shall be repayable on demand Margin The borrower has
to maintain appropriate margin as stipulated in the sanction terms, however
the same is subject to change. Extent and
Operation of the charge The security
created under said Memorandum shall operate as continuing security. The charged
goods/ property shall be kept at the Company’s risk and expenses in good
condition and fully insured against loss or damage by fire, lighting or
explosion or theft and also loss or damage by riot and civil commotion etc.
as may be required by the bank in the joint names of the Bank and the
company. Others The company
hereby declares that all the charged property / assets now existing are
absolute property of an the sole disposal of the company and free from any
prior charge or encumbrance. The company has
created mortgaged for securing credit facilities sanctioned by bank to M/S
Premier (India) Bearings Limited, ZKL Bearings (India) Private Limited,
Crystal Bearings Private Limited and M/S Phonix Trading Corporation Other terms and
conditions are as per terms and conditions of above referred agreement. |
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Short particulars
of the property charged |
The Company
created equitable mortgage in respect of Room No. 413, on the 4th
Floor of the multi – storied building situated at 33/1, N.S. Road,
Kolkata-700001, West Bengal, India For details please
refer attached Memorandum of Entry |
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Date of latest
modification prior to the present modification |
21.02.2006 |
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Particulars of
the present modification |
By Present
modification the overall limit secured by charge has been enhanced from Rs.55.000
Millions to Rs. 173.500 Millions the Limit of the following borrowings are
secured:- 1) Premier (India) Bearings Limited – Rs.
55.000 Millions 2) ZKL Bearings (India) Private Limited – Rs.
100.000 Millions 3) Crystal Bearings Private Limited – Rs.
7.500 Millions 4) Phoenix Trading Corporation- Rs. 11.000
Millions Other terms and
conditions save as modified above remain unchanged. |
AS PER WEBSITE
Company :
They believe all great things start small. Subject was no exception. Armed with commitment
and zest to the best at what they do, it was 1975 that saw them embark on a
journey that has become an increasingly challenging and fruitful one. Almost 30
years ago, the turnover was a modest of Rs 1 Million. Today the group turnover
stands at a whopping Rs 650 million.
They target to achieve a group turnover of Rs. 1000 million by year 2006. It
offers no surprise to know that at present they command bulk market share for
distribution of bearings.
In keeping with the ever expanding enterprise, they have
moved on from the times when they managed with a solitary office in Calcutta. Today, offices at Chennai, Mumbai, Bangalore, Chandigarh,
Ludhiana, and Gurgaon
testify to their status and solidity of purpose.
Similarly, at the nascent stages of the endeavour,
distributorship of bearings formed the core function. Here, other than bearing they have a wholesome array of
associated products to offer which include bearing sleeves, bearing housing, mounting and dismounting tools,
maintenance products, condition monitoring equipments, grease and oil seals. In
short, the quality of products match with the pedigree of the allied services
they offer, the later in the able hands of trained personnel. These are
supported by state of the art infrastructure, the latest communication
facilities and on-line links with principals, enabling them, therefore to
provide the finest service on demand and, of course, adhere to the deadlines.
Suffice to mention, the perseverance has resulted in more
than client satisfaction.
They have been long conferred the honour of being the Maha Dealer and Star Suppliers, and
have been awarded the No. I best Distributor prize in India for the last Nine years - 1995 to 2003. They have
received awards in all categories crucial to the business. Be it at the
throbbing hub of commerce of Kuala Lumpur, the industrially galloping German
city of Schweinfurt, or the idyllic setting of Gold Coast, Australia, all three
geographically diverse settings have witnessed the felicitation of Premier
(India) Bearings Limited.
Premier (India) Bearings Limited,
though a throbbing -and ever-advancing outfit, is averse to resting on their
laurels. For, they believe, every day is a challenge. Every day is about
bettering the standards and renewing afresh the pledge to provide the customers
the very best.
Therefore, they are relentlessly on the move to explore
newer avenues and untested terrain to develop the expertise further, giving the
products and the services an added sheen. In light of this attitude, they are
working towards opening more branches in the country to effect a closer contact
with the customers, while endeavoring to offer them more and more.
The new era is already on, which will bring forth a fresh
batch of discoveries, newer wonders in technology, a greater fillip to
standards of life as a whole. Rest assured, Premier (India) Bearings Limited
will remain very much a participant to this absorbing, all-engaging process.
Dedicated Sales Team:
Trained workforce of 110 people including a team of 10 experienced engineers
fully capable of serving you and taking care of the bearing related
requirements and offering solutions to help improve the bottom line.
Key
Industries:
Paper
Industry
Ballarpur Industries Limited
Ø
Shree Gopal Unit , Yamunanagar
Ø
Asthi Unit asthi
Ø
Sewa Unit
Ø
Ballarshah Unit
Ø
Abhishek Industries Limited
Ø
Khanna Paper Mills
Ø
Shreyans Industries Limited
Ø
Unit Shreyans
Ø
Unit Shree Rishab
Ø
ABC Papers
Ø
Star Paper
Ø
Sainson Paper Mills
Ø
Ruchira Paper Mills
Ø
Hindustan Newsprint Limited
Ø
West Coast Paper
Ø
Satia Paper Mills
Ø
Sree Sakthi Paper Mills Limited
Ø
Tamilnadu Newsprint and Papers Limited
Textile Industry
Ø
Vardhman Group
Ø
Nahar Group
Ø
Abhishek Group
Ø
Malwa Group
Ø
Pashupati Group
Ø
Ispat Group
Ø
Winsome Group
Ø
Deepak Group
Ø
Ginni Filaments
Cement Industry
Ø
ACC Group
Ø
Gujrat Ambuja Group
Ø
Ultra Tech Cements Limited
Ø
JK Group
Ø
Madras Cements Limited
Ø
India Cements Limited
Ø
Mysore Cements Limited
Sugar Industry
Ø
Nahar Group
Ø
State Cooperative sugar Mills
Ø
Bajaj group
Ø
Balrampur Group
Ø
Sakthi Sugars Limited
Ø
Rana Group
Automotive
Industry
Ø
Maruti
Ø
Hero Honda
Ø
Bajaj Group
Ø
Eicher Motors
Ø
Omaxe Auto
Ø
Ricoh Auto
Ø
Honda
Ø
Suzuki Motorcycle
Ø
JBN and Neel Metal Group
Ø
Escorts Group
Services:
Ø
Mapping Customer Requirements
Ø
Helping Customers to identify exact
requirements
Ø
Organising Training Programmes and
Seminar so as to help the customers to smooth operations
Ø
Organising Bearing Clinics to address
specific bearing related problems faced
by the customer.
Ø
Guiding customers to preventive and
pro-active maintenance
Ø
Attending Customer Complaints Promptly
Ø
Just-in-time deliveries
Ø
Annual Rate Contracts
Ø
Bearing Banks
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.49.95 |
|
UK Pound |
1 |
Rs.79.56 |
|
Euro |
1 |
Rs.63.65 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
TOTAL |
|
67 |
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 |
|