MIRA
INFORM REPORT
|
Report Date : |
11.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
RATHI LIGHTNIN MIXER PRIVATE LIMITED |
|
|
|
|
Registered Office : |
1162/2, Shivaji Nagar, Behind Obsservatory, Pune – 411 005,
Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
03.11.1998 |
|
|
|
|
Com. Reg. No.: |
25 - 13000 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U13000PN1998PTC013000 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
PNER01211A |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AABCR5691L |
|
|
|
|
Legal Form : |
Private Limited Liability Company |
|
|
|
|
Line of Business : |
Manufacturer of all Kinds of Concrete Mixers, Impellers and Motors. |
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 |
|
Maximum Credit Limit : |
USD 170295 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Mr. Jayant (Finance Manager) of the company agreed to part required
details after 10 days since he is busy in audit. Subject is a well established company having satisfactory track. Trade
relations are fair. Financial position is good. Payments are usually correct
and as per commitments. The company is doing well. It can be considered good for normal business dealings at usual trade
terms and conditions. |
INFORMATION
DECLINED BY
|
Name : |
Mr. Jayant |
|
Designation : |
Finance Manager |
|
Date : |
08.09.2008 |
LOCATIONS
|
Registered Office : |
1162/2, Shivaji Nagar, Behind Obsservatory, Pune – 411 005,
Maharashtra, India |
|
Tel. No.: |
91-20-25535384 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
|
Name : |
Mr. Balkrishna Rathi |
|
Designation : |
Director |
|
Address : |
94/ 13 – 14 Lane No. 11, Prabhat Road, Pune – 411 004, Maharashtra,
India |
|
Date of Birth/Age : |
14.11.1928 |
|
Date of Appointment : |
30.08.2003 |
|
|
|
|
Name : |
Mr. Kishore L. Rathi |
|
Designation : |
Director |
|
Address : |
C-4, Abhiman Shree Society, Pashan Road, Pune – 411 008, Maharashtra,
India |
|
Date of Birth/Age : |
27.10.1938 |
|
Date of Appointment : |
30.08.2003 |
|
|
|
|
Name : |
Mr. Ajoy B. Rathi |
|
Designation : |
Managing Director |
|
Address : |
60, Baner Road, Aundh, Pune – 411 007, Maharashtra, India |
|
Date of Birth/Age : |
28.07.1956 |
|
Date of Appointment : |
30.08.2003 |
|
|
|
|
Name : |
Mr. John A. Derham |
|
Designation : |
Director |
|
Address : |
C/o. Lightnin Mixers Limited, Poynton Stockport, Cheshire, UK |
|
Date of Appointment : |
30.08.2003 |
|
|
|
|
Name : |
Mr. David J. Bannister |
|
Designation : |
Director |
|
Address : |
20, Sydenham Road, Mackworth, Derby, UK |
|
Date of Appointment : |
30.08.2003 |
|
Date of Ceasing : |
25.03.2005 |
|
|
|
|
Name : |
Mr. Philip K. Page |
|
Designation : |
Director |
|
Address : |
The Forge Well Lane, Butley Town, Prestbury, Cheshire, SK - 10 402, UK |
|
Date of Appointment : |
28.09.1999 |
|
Date of Ceasing : |
26.03.2005 |
|
|
|
|
Name : |
Mr. Edwin Thong Lou Siew |
|
Designation : |
Director |
|
Address : |
1, Jurong East St. 32, # 05 – 03 The Mayfair, Singapore – 609 477 |
|
Date of Birth : |
18.04.1970 |
|
Date of Ceasing : |
29.06.2007 |
|
|
|
|
Name : |
Ms. Jenny EEEE NG |
|
Designation : |
Director |
|
Address : |
6, Petir Road, # 19 – 14, Mayspring, Singapore – 678 267 |
|
Date of Birth : |
04.02.1963 |
|
Date of Appointment : |
25.03.2005 |
|
|
|
|
Name : |
Mr. Pradeep RamWilas Rathi |
|
Designation : |
Director |
|
Address : |
2, Boat Club Road, Pune – 411 001, Maharashtra, India |
|
Date of Birth : |
20.05.1953 |
|
Date of Appointment : |
12.03.2007 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 29.09.2005
|
Names of Shareholders |
No. of Shares |
|
General Singhal UK Limited |
240000 |
|
Rathi Brothers Private Limited |
239980 |
|
Mr. Kishore Rathi |
10 |
|
Mr. Balkrishna J. Rathi |
10 |
|
Total |
480000 |
Equity share breakup
(Percentage of total equity)
As on 31.03.2007
|
Sr. No. |
Category |
Percentage |
|
1. |
Foreign holdings (Foreign institutional investors, Foreign companies, Foreign
financial institutions, Non resident Indians or Overseas corporate bodies or
Others |
50.00 |
|
2. |
Bodies corporate (not mentioned above) |
49.99 |
|
3. |
Directors or relatives of directors |
0.01 |
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of all Kinds of Concrete Mixers, Impellers and Motors. |
GENERAL
INFORMATION
|
Customers : |
v Agrevo
Industries Limited v Indian Dairy
Machinery v Haden Jost v Bayer ABS
Limited v ICI Limited v Aquatech Asia v Hindalco
Industries Limited v Hercules
Specialty Chemicals v Exide Industries
Limited v RPG Life
Sciences v Hindustan Ink
and Resin v Bayer ABS
Limited v Nova
Petrochemicals Limited v NOCIL v BILT Chemical
Limited v Nav Maharashtra
Chakan oil Mill v Futura Polymers
Limited v Hindalco
Industries Limited v Alfa Laval
(India) Limited v Alfa Laval
(India) Limited v L and T EPC
Power Baroda v Sudarshan
Chemical Industries Limited v Nestle India
Limited v Multi Organics
Limited v Coromandel
Fertilizers Limited v Haden
International v Gharda Chemicals v Arjun
Technologies Limited v Rallis India
Limited v Hindustan Paper
Corporation v Dorf Ketal v Roha Dyechem v Atul Limited v Ciba Specialty
Chemicals v Ciba Specialty
Chemicals v Ondeo Degremont v Futura Polymers v Reliance
Industries Limited v Alfa Laval v NOCIL RCD v Spak Orgochem v Ion Exchange
India Limited v Alfa Laval v Bayer ABS v Milindia Limited v Alfa Laval v Alfa Laval v Ondeo Degremont v Tata Steel v Larsen and
Toubro Limited v Star Chemicals v Multi Organics v Praj Industries
Limited v Bayer India
Limited v Praj Industries
Limited v MCC PTA v Audichem (India)
Limited v Alfa Laval /
Ranbaxy v Reliance
Industries Limited v NOCIL v Sudarshan
Chemicals v Alfa Laval v Hindustan Lever v Ondeo Degremont v Alfa Laval v UEM India
Limited v Alfa Laval v Atul Limited v Ondeo Degremont v K.R. Refinery /
Lipico Oil and Fats v Sudarshan
Chemical Inds. Limited v Amararaja
Batteries Limited v BILT Chemicals v Rallis India
Limited v Hindalco Inds.
Limited v Alfa Laval v Rieco Industries
Limited v Cookson India
Limited v Reliance Inds
Limited v Zuari Inds.
Limited v Multi Organics
Private Limited v Owens Corning v Star Chemicals v Alfa Laval v Hindustan Max GB v Novartis India
Limited v Multi Organics
Limited v N. Ranga Rao and
Sons v Multi Organics v Joyco India
Private Limited v PSI Engineering v Bilag Inds. v Sudarshan
Chemical Industries v NOCIL v Multi Organics v Air India v Videocon v Praj Inds. v ETCO v Galaxy v Solaris v PSI Engg v India Glycols v Indrox Global v Nestle India v Yash Papers v Multi Organics v PSI Engg v Star Chemicals v Taikisha v Kejriwal /
Mariental v Biocon v High Polymer v High Polymer v Multi Organics v Atul Limited v Havell’s India v UEM v Alkyl Amines v Cleanline
Products v Rubamin / Alfa
Projects v Ferricon v Ondeo Degremont v Murali Agro v Lubrizol v Ruchi Healthfood v Alfa Laval v Videocon v Ferricon v Thyssen Krupp v Biocon v Dow Chemicals v Gharda Chemicals v Hindustan
Platinum v Paradeep
Phosphates v Alfa Laval v Binani Zinc v Dr. Reddys v JVSL v McNally Bharat v Aquatech Asia v Taikisha v Galaxy v Owens Corning v Suretex
Prophylactics v Suretex
Prophylactics v Bayer ABS
Limited v Alkyl Amines v Biocon v Pidilite v Henkel Chembond v High Polymer v Indal Aluminium v L and T Chennai v L and T Chennai v Bharat Explosives v Spak Orgo v Schenectday
Herdillia v Birla NGK v Alfa Laval v Reliance Inds v Sudarshan
Chemicals v Asian Paints v Indrox Global v Birla NGK v Galaxy v Jindal
Vijayanagar Steel Limited v Asian Paints v INDAL Lohardaga v FFE Minerals |
|
|
|
|
Bankers : |
v Bank of Maharashtra Industrial Finance Branch, F C Road, Pune – 411 005, Maharashtra,
India |
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Amarendra Athalye and Company Chartered Accountants |
|
Address : |
Office No. 9, 2nd Floor, Chitralekha Chambers, 129, Ideal
Colony, Pune – 411 038, Maharashtra, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500000 |
Equity shares |
Rs. 10/- each |
Rs. 5.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
480000 |
Equity shares |
Rs. 10/- each |
Rs. 4.800
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 |
4.800 |
4.800 |
4.800 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
29.259 |
17.901 |
6.258 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
34.059 |
22.701 |
11.058 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
25.219 |
6.149 |
29.594 |
|
|
2] Unsecured Loans |
0.000 |
8.000 |
11.000 |
|
|
TOTAL BORROWING |
25.219 |
14.149 |
40.594 |
|
|
DEFERRED TAX LIABILITIES |
1.388 |
0.548 |
0.238 |
|
|
|
|
|
|
|
|
TOTAL |
60.666 |
37.398 |
51.890 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
13.266 |
8.059 |
3.667 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
27.378
|
23.283 |
43.866 |
|
|
Sundry Debtors |
36.509
|
35.389 |
35.191 |
|
|
Cash & Bank Balances |
7.870
|
11.698 |
6.485 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
31.064
|
19.659 |
12.175 |
|
Total
Current Assets |
102.821
|
90.029 |
97.717 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
34.654
|
39.080 |
36.624 |
|
|
Provisions |
20.779
|
21.633 |
12.904 |
|
Total
Current Liabilities |
55.433
|
60.713 |
49.528 |
|
|
Net Current Assets |
47.388
|
29.316 |
48.189 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.012 |
0.024 |
0.035 |
|
|
|
|
|
|
|
|
TOTAL |
60.666 |
37.398 |
51.890 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
|
163.023 |
168.738 |
|
|
Total Income |
|
163.023 |
168.738 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
0.017 |
0.027 |
|
|
Provision for Taxation |
|
0.000 |
0.000 |
|
|
Profit/(Loss) After Tax |
|
0.017 |
0.027 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Interest |
|
1.695 |
3.053 |
|
|
Depreciation & Amortization |
|
1.296 |
0.700 |
|
|
Other Expenditure |
|
160.015 |
164.958 |
|
Total Expenditure |
|
163.006 |
168.711 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
0.01
|
0.02 |
-- |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.01
|
0.02 |
-- |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.01
|
0.02 |
-- |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.00
|
0.00 |
-- |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.63
|
2.67 |
4.48 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.85
|
1.48 |
1.97 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8
|
Name of the company |
RATHI LIGHTNIN MIXER PRIVATE LIMITED |
|
Presented By |
v Bank of
Maharashtra Industrial Finance
Branch, F C Road, Pune – 411 005, Maharashtra, India |
|
1) Date and description of instrument creating the change |
1) Composite Deed of hypothecation for all facilities 2) Agreement for Term Loan 3) Letter relating to operating of an Irrecoverable without recourse letter of credit 4) Guarantee in Bank’s Favour 5) Agreement relating to opening of an inland irrecoverable without recourse letter of credit cum hypothecation cum indemnity. All constitute a single charge and dated 22.12.2004 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 864.840 millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
First and exclusive charge and security by way of hypothecation charge over the borrower’s present and future movable plants and / or machineries such as hypothecation of inventory and receivables of the order of M/s. Vedanta Alumina Limited as described in the Fourth schedule of the composite deed of hypothecation for all facilities. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Term Loan Rs. 30.000 millions Rate of Interest: 1% over BPLR 11.25% min. 12.25% p.a. repayable in instalments of Rs. 0.100 million due on September 2005. October 2005 and March 2006 as described in the second schedule of the composite deed of hypothecation for all facilities. Guarantee Limit Rs. 504.840 millions Letter of Credit Limit Rs. 6.000 millions Other terms and conditions as per documents. |
|
5) Name and Address and description of the person entitled to the charge. |
v Bank of
Maharashtra Industrial Finance
Branch, F C Road, Pune – 411 005, Maharashtra, India |
|
6) Date and brief description of instrument modifying the charge |
Letter dated 24.10.2005 |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
The total amount of charge hypothecation was made stands reduced to Rs. 36.000 millions (The charge on the guarantee limit of Rs. 50.484 millions is released.) |
Form 8
|
This form is for |
Creation of charge |
|
Corporation identity number (CIN) or foreign company registrations number of the company |
U13000PN1998PTC013000 |
|
Name of the company |
RATHI LIGHTNIN MIXER PRIVATE LIMITED |
|
Address |
1162/2, Shivaji Nagar, Behind Obsservatory, Pune – 411 005,
Maharashtra, India |
|
Type of Charges |
v Book debts v Movable property (not being pledge) v Goodwill v Patent, License under a patent v Trademark v Others |
|
Particular of the charge holder |
Bank of Maharashtra Address: industrial Finance Branch, FC Road City : Pune State : Maharashtra ISO country code : IN Pin code : 411005 e-mail ID: bom941@mahabank.co.in |
|
Nature or description of the instrument creating or modifying the charge |
Composite Deed of hypothecation for all facilities. |
|
Date of the instrument creating charge |
12.06.2007 |
|
Whether charge created or modified outside India |
No |
|
Amount Secure by the charge |
Rs. 10.500 millions |
|
Brief particulars of the principal terms and conditions and extent and operation of the charge |
Rate of Interest As per company guidelines applicable to export finance. Terms of repayment Packing credit to be liquidated from proceeds of export bills. Period: up to 31.10.2007 Margin For packing Credit – 10% on FOB value for FOBN : Nil Extent and operation of the charge Funded working capital – facility packing credit / FOBN (one time). Purpose: To execute export order of USD 288067.42 |
|
Short particulars of the Property charged |
Hypothecation of inventory meant for export situated or located at Company’s offices, factories, godowns or anywhere else. |
|
Whether any of the property or interest therein under reference is not registered in the name of the company |
No |
As Per Website Details
Subject a joint venture company with Lightnin, UK, now offers mixers manufactured in India. Backed by Lightning's 70 Years of Research and development, enormous application knowledge, customers are assured of the most cost effective, energy efficient, continuously performing mixers.
Subject Specialist in Portable and Industrial Fuid Mixers. Impeller design is
optimum based on the mixing dynamics, ensuring consistent process results,
meeting the needs of customer's process accurately and efficiently. The
state-of-the design mixers have longer life, high reliability of performance,
low downtime for repairs and maintenance.
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 :
The 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.
The 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. 45.12 |
|
UK Pound |
1 |
Rs. 79.60 |
|
Euro |
1 |
Rs. 63.83 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
TOTAL |
|
54 |
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, they have no basis upon which to
recommend credit dealings |
No Rating |
|