MIRA
INFORM REPORT
|
Report Date : |
23.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
HONEYWELL
TECHNOLOGY SOLUTIONS LAB PRIVATE LIMITED |
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Registered Office : |
151/1, Doraisami Palya, Bannerghatta Road, Bangalore – 560 076,
Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
11.10.1994 |
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Com. Reg. No.: |
08-16379 |
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CIN No.: [Company
Identification No.] |
U72200KA1994PTC016379 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRH01850C |
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PAN No.: [Permanent
Account No.] |
AAACH4151J |
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Legal Form : |
Private Limited
Liability Company |
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Line of Business : |
Subject is
Exporter of System Software Development & Conversion, IT Services, IT
enabling Services Software Verification, Hardware & Design System etc.
with expertise in Six Sigma. |
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 8000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having fine track. Trade
relations are fair. Financial position is good. Payments are usually correct
and as per commitments. The company can be considered good for any normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office/ Software Unit: |
151/1, Doraisami Palya, Bannerghatta Road, Bangalore – 560 076,
Karnataka, India. |
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Tel. No.: |
91-80-26588360/
51197222/26580234 |
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Mobile No. : |
91-9845069110 |
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Fax No.: |
91-80-26584750 |
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E-Mail : |
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Website : |
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Area : |
145000 sq. ft. |
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Location : |
Leased |
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Branches : |
Located at :
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DIRECTORS
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Name : |
Mr. Larry Engene
Kettelberger |
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Designation : |
Chairman |
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Address : |
4, Mcvickers
Lane, Mendham, New Jersey – 07945 |
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Date of Birth/Age : |
18.02.1949 |
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Date of Appointment : |
11.02.2002 |
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Name : |
Dr. Krishna
Mikkilineni |
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Designation : |
Managing Director
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Address : |
63, 5TH
Cross, Centralexciselayout, Rmvextn, 2nd Stage, Bangalore – 560094
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Date of Birth/Age : |
13.09.1959 |
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Date of Appointment : |
25.10.1994 |
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Name : |
Mr. Patrick Duffy |
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Designation : |
Director |
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Address : |
9, Lake Cherokee
Drive, Randolpl, New Jersey – 07945 |
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Date of Birth/Age : |
05.03.1962 |
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Date of Appointment : |
21.09.2004 |
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Name : |
Mr. Ashwani Gupta |
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Designation : |
Director |
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Address : |
C – 27, Chirag
Enclave, New Delhi – 110048 |
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Date of Birth/Age : |
09.01.1958 |
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Date of Appointment : |
18.12.2002 |
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Date of Ceasing : |
30.06.2008 |
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Name : |
Mr. Thomas
Francis Larkins |
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Designation : |
Director |
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Address : |
110, Green
Avenue, Madison, Newjersey – 07940 |
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Date of Birth/Age : |
15.06.1961 |
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Date of Appointment : |
17.09.2003 |
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Name : |
Mr. D Satya
Srinivas |
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Designation : |
Company Sectary |
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Address : |
C – 604, Purva
Heights, Bannerghatta Road, Bangalore – 560076 |
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Date of Birth/Age : |
08.11.1969 |
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Date of Appointment : |
01.03.2004 |
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Name : |
Mr. Mark Alan Natale |
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Designation : |
Director |
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Address : |
15, Park Place, Little Falls, New Jersey, US 07424 |
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Date of Birth/Age : |
29.10.1965 |
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Date of Appointment : |
27.03.2007 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Honeywell
International INC., USA |
|
4999989 |
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Honeywell
Aircraft Leasing LLC, USA |
|
1 |
|
Total |
|
4999990 |
AS ON
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Directors or relatives of directors |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is
Exporter of system Software Development & Conversion, IT Services, IT
enabling Services Software Verification, Hardware & Design System etc. with
expertise in Six Sigma. |
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Exports : |
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Countries : |
North America,
Canada, Europe, Asia and Australia |
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Imports : |
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Countries : |
USA |
GENERAL
INFORMATION
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Suppliers : |
Honeywell
International INC., USA |
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Customers : |
Ø Honeywell International INC., USA Ø Hindustan Aeronautics India Limited |
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No. of Employees : |
2000 |
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Bankers : |
Ø American Express Bank Ø J P Morgan Chase Bank, USA |
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Banking Relations
: |
Satisfactory |
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Auditors : |
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Name : |
Price Waterhouse Chartered
Accountant |
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Address : |
The Millenia, D-Block, 1 & 2 Murphy Road, Ulsoor, Bangalore –
560076, Karnataka, India |
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Fellow Subsidiaries : |
Ø Honeywell Limited,
Australia Ø Honeywell Europe
SA, Belgium Ø Honeywell Asca
Inc., Canada ` Ø Honeywell
Garrette S.A., France Ø Honeywell – AG
GmbH, Germany Ø Honeywell BV.,
Netherlands Ø Honeywell
Control Systems Limited, UK Ø Honeywell Pte
Limited, Singapore Ø Honeywell Taiwan
Limited, Taiwan Ø Honeywell
[Tianjin] Limited, China Ø Honeywell
Control Systems Limited, Scotland Ø Honeywell
Intellectual Properties Inc., USA Ø Honeywell
Southern Africa Pty, South Africa Ø Honeywell Middle
East Limited, UAE Ø Honeywell –
Ademco Security Group, USA Ø Ademco Asia
Pacific Limited, Hong Kong Ø Northern
Computers Inc., USA Ø Honeywell
Automation India Limited Ø Honeywell
International India Private Limited Ø Honeywell
Aircraft Leasing LLC Ø Honeywell and
Company Oman LLC Ø Honeywell Korea Ø Honeywell OY Ø Honeywell
Technology Solutions Lab, Beijing Ø Novar ED and S
Limited |
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Holding Companies: |
Ø Honeywell International INC., USA |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs. 10/- each |
Rs. 100.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4999990 |
Equity Shares |
Rs. 10/- each |
Rs. 50.000 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
|
50.000 |
50.000 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
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|
3] Reserves & Surplus |
|
1540.266 |
1053.736 |
|
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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|
NETWORTH |
|
1590.266 |
1103.736 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
78.414 |
71.545 |
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2] Unsecured Loans |
|
13.121 |
735.487 |
|
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TOTAL BORROWING |
|
91.535 |
807.032 |
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DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
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|
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TOTAL |
|
1681.801 |
1910.768 |
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APPLICATION OF FUNDS |
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|
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FIXED ASSETS [Net Block] |
|
866.883 |
717.649 |
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Capital work-in-progress |
|
16.556 |
58.676 |
|
|
|
|
|
|
|
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INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
34.807 |
24.710 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
|
0.000 |
0.000 |
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Sundry Debtors |
|
926.351 |
903.170 |
|
|
Cash & Bank Balances |
|
272.144 |
351.273 |
|
|
Other Current Assets |
|
298.398 |
219.702 |
|
|
Loans & Advances |
|
137.239 |
156.145 |
|
Total
Current Assets |
|
1634.132 |
1630.290 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
758.278 |
438.184 |
|
|
Provisions |
|
112.299 |
82.373 |
|
Total
Current Liabilities |
|
870.577 |
520.557 |
|
|
Net Current Assets |
|
763.555 |
1109.733 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
1681.801 |
1910.768 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
|
Services |
|
5979.710 |
4670.956 |
|
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Other Income |
|
30.244 |
65.877 |
|
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Total Income |
|
6009.954 |
4736.833 |
|
|
|
|
|
|
|
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Profit/(Loss) Before Tax |
|
582.754 |
769.057 |
|
|
Provision for Taxation |
|
137.529 |
130.288 |
|
|
Profit/(Loss) After Tax |
|
445.225 |
638.769 |
|
|
|
|
|
|
|
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Earnings in Foreign Currency |
|
5941.543 |
4670.956 |
|
|
|
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Expenditures : |
|
|
|
|
|
|
Financial Charges |
|
27.478 |
18.188 |
|
|
Depreciation & Amortization |
|
319.806 |
280.450 |
|
|
Exceptional / Non-Recurring Item |
|
124.246 |
0.000 |
|
|
Other Expenditure |
|
4955.670 |
3669.138 |
|
Total Expenditure |
|
5427.200 |
3967.776 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
|
7.41 |
13.49 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
9.75 |
16.46 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
23.30 |
32.73 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
0.37 |
0.70 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
0.61 |
1.20 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
1.88 |
3.13 |
LOCAL AGENCY
FURTHER INFORMATION
AS PER WEBSITE:
HTSL History
It all began in October of 1994 in Bangalore with Dr.
Krishna Mikkilineni leading a half a dozen people with an office in Electronics
City, Bangalore India. It was called HISO then – Honeywell India Software
Operations. Then in late 1995, the office shifted to Shivaji Nagar in the heart
of Bangalore and today is headquartered in Bannerghatta Road, Bangalore with
locations in Shanghai, Beijing, Singapore, Phoenix, Minneapolis and Madurai.
The
Garden City of India as Bangalore is called, was establishing itself as the
Silicon Valley of India then. It was a hotbed of software development activity
and the giants of software were setting up their base here. It was the right
time for Honeywell Technology Solutions Lab (HISO earlier and name changed
later to HTSL) to carve its niche here.
Initially, in its budding days, HTSL was the off shore software development
facility for Honeywell businesses worldwide in the areas of Aerospace and
Automation Control Solutions. By early 1996-97, HTSL started consolidating its
base in India by building dedicated teams for its expanding portfolio. The next
6/7 years saw HTSL establishing itself as a center of excellence in core
engineering areas.
HTSL has steadily climbed up the value chain since
then, and its growth has been eventful and strewn with challenges. In these
past few years of its journey, HTSL has proved beyond doubt that its strength
lies in its high caliber professionals who bring with them their expertise and
knowledge and are instrumental in the growth of the organization. One of the
many reasons that HTSL’s growth curve has seen a sharp incline is because it
has fully and ably accepted the gauntlet of becoming a total solution provider
for Honeywell businesses.
Having successfully moved up the value chain means,
that today, HTSL’s ambit has expanded to include diverse areas of technology
development and offers a spectrum of services to its customers with its
multi-disciplinary approach to providing total solutions. HTSL is a center of
excellence, a place that nurtures multiple skills (mechanical, electronics &
electrical, computer science, industrial engineering, aerospace etc.), multiple
areas of work (real time systems, control systems, EAI, reliability engineering
etc.) and multiple technologies (J2EE, .NET C# etc.). HTSL effectively
leverages its legacy of technology expertise and experience to provide
best-in-class solutions. Result? Complete customer delight.
Its expansion into various other regions in India and
abroad, is tribute to the visionary approach in providing value and
contributing to Honeywell’s growth. HTSL’s disciplined and most competent
engineers are constantly endeavoring to provide superior value to its customers
and ensuring global standards of quality, innovation and lifetime performance.
Poised as it is at the threshold of rapid growth in the next couple of years,
the path ahead
Process
& Quality
Today’s global, competitive business environment
expects nothing short of perfection and there is no room for error. In its
endeavor to surpass excellence, HTSL is constantly looking to meet and exceed
its customers’ expectations, and has very stringent standards of process and
quality.
Commitment to quality is not just another core value
at HTSL, it is paramount. A stance on which there can be no compromise. The
SEI-CMMI level 5 and ISO 9001:2000 Quality Certification, with a high degree of
focus on Personal and Team Software Processes are testimony to this.
The Six Sigma and DFSS employed at HTSL make sure
that it gets the results that meet the highest standards of quality. It is a
reaffirmation of its commitment to quality because HTSL truly believes that it
owes it to its customers, stakeholders, employees, associates and the community
at large.
Community
Outreach
“I slept and I dreamed that life is all joy,
I woke and I saw that life is all service. I served and I saw that service is
joy.” This quotation has been attributed to Mother Teresa, who believed in
doing, in giving and in serving the needy without bias or prejudice.
Having imbibed a spirit
of giving from its parent organization coupled with the basic Indian value of
"living together", these principles form the very basis for the
Community Services initiatives at HTSL.
At HTSL, community service is a cause celebre. While financial contributions
from Honeywell and its employees are substantial, HTSL recognized sometime ago
that the most effective corporate citizenship efforts extend beyond the cheque
book. Employees are the driving force behind the organization’s social
responsibility and involvement in various community service activities. Many
employees at all levels in the organization contribute countless hours each
year, rolling up their sleeves to take part in community service activities and
volunteer their time and energy to different community service initiatives thus
enhancing and improving the lives of countless people, and also increasing the
network of such socially conscious citizens. These initiatives run along 5 main
themes viz., Medical, Education, Humanitarian and Native Village Adoption and
Start A Life schemes explained in detail in their sub-sections.
One favorite story
that inspires all at HTSL towards doing more for the community is about a
little boy who saved the lives of as many starfishes as he could. You too can
read more about this story and be inspired.
Education
This
initiative of HTSL has multiple facets. A whole gamut of activities ranging
from scholarship programs for economically underprivileged children, donating
mobile science centers, conducting teachers’ training programs, mentoring,
donating computers, conducting science exhibitions and much more, is what this
initiative comprises of.
Medical
In a
country as vast and diverse as ours, to manage and cope with the medical needs
of the ill and economically challenged is a humungous task.HTSL’s initiative
goes some way in providing medical relief in villages in and around Bangalore.
Native Village
Adoption
India has
a vast majority of its population residing in villages. Their villages are
breeding grounds of skill, talent, and ingenious minds. Recognizing the
intrinsic value of these villages, HTSL’s Native Village Adoption or NVA as
it’s colloquially known looks into various aspects of bringing development to
the fore in these villages.
Humanitarian
Being
humane is as important as being human. Being sensitive to the needs of people
who are economically challenged or just plain needy is also one aspect of
HTSL’s community service efforts.
Start A Life
A little
bit of help goes a long way. ‘Start a Life’ is one such initiative which has
been adopted by HTSL recently. The joy in having brought to fruition someone’s
dreams of becoming economically independent knows no bounds.
Press Release
Honeywell to Provide Avionics Suite for Tiger
Airways New Airbus A320 Aircraft
Full suite of avionics includes terrain, traffic avoidance warning
systems
PHOENIX, Sept. 18, 2008 -- Honeywell (NYSE: HON) announced
today that Tiger Airways has selected Honeywell’s full suite of avionics
products for its additional Airbus A320 aircraft.
Tiger Airways, whose existing fleet of A320 is already equipped
with Honeywell avionics equipment, will receive eight A320 aircraft between
2008 and 2010. The avionics suite to be provided for these aircraft will include
Honeywell’s RDR-4B weather radar; QuantumTM Line Comm Nav Surveillance (CNS);
high-frequency radio; Traffic Collision Avoidance System (TCAS); Enhanced
Ground Proximity Warning System (EGPWS), Solid State Flight Data Recorder
(SSFDR); Solid State Cockpit Voice Recorder (SSCVR); Flight Data Acquisition
and Management System (FDAMS); Aircraft Communication Addressing and Reporting
System (ACARS) and Emergency Locator Transmitter (ELT).
“Tiger Airways investment in Honeywell’s avionics suite will
provide enhanced reliability and better performance, and will optimize their
operations worldwide through fleet commonality,” said Mike Madsen, Honeywell
Aerospace Vice President, Airlines. “Our products help assure Tiger Airways
investment in these aircraft will result in safer, more cost-effective and
efficient operations.”
Tiger Airways Group CEO and President Tony Davis said, “The safety
and security of our passengers has always been a top priority for Tiger
Airways. The Honeywell avionics suite provides assurance of reliability to
Tiger Airways flight operations. The extension of our existing partnership with
Honeywell delivers economies of scale and cost efficiency to the Tiger Airways
Group, ensuring that we can keep costs low while our focus on safety remains
high.”
Honeywell’s flight management system is a new design that
revolutions flight plan editing through a graphic interface to simplify
aircraft flight planning. EGPWS, invented by Honeywell, provides a terrain
display and alerts the flight crew if the aircraft approaches too close to
terrain. Honeywell’s patented ACAS (aka TCAS - Traffic Collision Avoidance
System) provides a display of surrounding aircraft and alerts the flight crew
if another aircraft comes too close for safety. Satellite communications
systems provide passenger and crew instant digital voice and air data
communications, as well as flight deck connectivity with air traffic control.
Tiger Airways is a Singapore-based low-cost airline that began
operations in 2003 and has expanded to become the largest low-cost airline
operating out of Singapore. Tiger Airways serves 27 destinations across nine
countries in Asia-Pacific.
Honeywell International is a $38 billion diversified technology
and manufacturing leader, serving customers worldwide with aerospace products
and services; control technologies for buildings, homes and industry;
automotive products; turbochargers; and specialty materials. Based in Morris
Township, N.J., Honeywell’s shares are traded on the New York, London and
Chicago Stock Exchanges.
Based in Phoenix, Honeywell’s aerospace business is a leading
global provider of integrated avionics, engines, systems and service solutions
for aircraft manufacturers, airlines, business and general aviation, military,
space and airport operations.
This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts as further described in
Media Contact:
Karen Crabtree
(602) 365-5255
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.45.40 |
|
UK Pound |
1 |
Rs.83.15 |
|
Euro |
1 |
Rs.65.74 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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 |
|