MIRA
INFORM REPORT
|
Report Date : |
04.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
GLAND
PHARMA LIMITED |
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Registered Office : |
6-3-862,
Ameerpet, Hyderabad-500016, Andhra Pradesh, India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
20.03.1978 |
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Com. Reg. No.: |
01-2276 |
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CIN No.: [Company
Identification No.] |
U24239AP1978PLC002276 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDG00199D |
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Legal Form : |
Closely Held Public
Limited Liability Company |
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Line of Business : |
Manufacturer of Small Volume Parentals (SVPs) Including Pre
Filled Syringes (PFSs). |
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
2500000 |
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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 closely held and well established company engaged
in manufacturing and marketing of Active Pharmaceutical Ingredients (APIs)
and Injectable formulations. The company’s business is progressing very well.
Financial position is satisfactory. Trade relations are reported as fair.
Payments are usually 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 : |
6-3-862, Ameerpet, Hyderabad – 500016, Andhra Pradesh, INDIA |
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Tel. No.: |
91-40-55621010 / 23541535 |
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Fax No.: |
91-40-23402229 |
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E-Mail : |
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Website : |
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Area : |
4000 sq.fts. |
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Location : |
Owned |
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Factory
1 : |
6-3-862, Ameerpet,
Hyderabad - 500016, Andhra Pradesh, INDIA |
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Tel.
No.: |
91-40-2331 2415/2157 |
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Fax
No.: |
91-40-2331 2229 |
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Area : |
12
acres |
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Location : |
Owned |
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Factory
2: |
D. P. Pally Village, Dunogial P.O. Hyderabad-500016, Andhra
Pradesh, India |
DIRECTORS
|
Name : |
Mr.
P.V.N. Raju |
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Designation : |
Chairman
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Address : |
303,
My Home Gardenia Appartments, Ameerpet, Hyderabad-16 |
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Date of Birth/Age : |
28/05/1933 |
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Date of Appointment : |
01.07.1980 |
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Name : |
Mr.
Ravi Penmesta |
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Designation : |
Vice
Chairman and Managing Director |
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Address : |
304,
My Home Gardenia Appartments, Ameerpet, Hyderabad-16 |
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Date of Birth/Age : |
05/11/1956 |
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Date of Appointment : |
30.08.2004 |
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Name : |
Mr. B.
Rama Raju |
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Designation : |
Executive
Director |
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Address : |
1242,
Road No.62, Jubilee Hills, Hyderabad-500034, India |
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Date of Birth/Age : |
08.03.1980 |
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Date of Appointment : |
13.06.2005 |
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Name : |
Dr. G.
Nandamuni |
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Designation : |
Director
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Address : |
306,
My Home Gardenia Appartments, Ameerpet, Hyderabad-16 |
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Date of Birth/Age : |
15/07/1939 |
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Date of Appointment : |
05.07.2000 |
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Name : |
Mr. B.
Vijaypasad |
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Designation : |
Director
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Address : |
3/2,
RT, First Floor, Vijaya Nagar Colony, Hyderabad-500057 |
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Date of Birth/Age : |
15/03/1952 |
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Date of Appointment : |
07.09.2000 |
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Name : |
Mr.
UDO J Vetter |
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Designation : |
Director
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Address : |
IM
Kammer Bruehl 24, D 88212, Ravensburg, Germany. |
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Date of Birth/Age : |
23/11/1954 |
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Date of Appointment : |
12.01.1996 |
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Name : |
Mr.
Jenik Ravon |
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Designation : |
Director
|
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Address : |
269,
W, 71st Street, NY10023, USA. |
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Date of Birth/Age : |
14/01/1946 |
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Date of Appointment : |
12.01.1996 |
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|
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|
Name : |
Mr.
Yuk Lam Lo |
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Designation : |
Director
|
|
Address : |
Unit
No 1111, 11/F, New Jiwkiib, Okazam, 38.tai Kok Tsui Road, Hongkong. |
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Date of Birth/Age : |
29/07/1948 |
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Date of Appointment : |
12.01.1996 |
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Name : |
Mr. A
Ramesh |
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Designation : |
Nominee
of APIDC |
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Address : |
7-7-77/C,
Dharam Karan Road, Ameerpet, Hyderabad-16 |
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Date of Birth/Age : |
21/05/1957 |
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Name : |
Mr.
Hans George Hansmann |
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Designation : |
Nominee
of DEG |
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Address : |
Director
DEG Office of India, 21 Jor Bagh, New Delhi-110003 |
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Date of Birth/Age : |
17/06/1940 |
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Name : |
Mr.
Klaus Schoenwetter |
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Designation : |
Alternate
Director of UDO J Vetter |
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Address : |
IM
Kammer Bruehl 24, D 88212, Ravevsburg, Germany. |
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Date of Birth/Age : |
12/03/1945 |
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Name : |
Dr. K.
Hanumanthappa |
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Designation : |
Director |
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Address : |
1262,
Prasanthi, 32nd G Cross, 28th Main, 4th T
Block, Jayantnagar, Bangalore-560041, Karnataka, India |
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Date of Birth/Age : |
08.08.1935 |
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Date of Appointment : |
30.08.2004 |
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|
Name : |
Mr. G.
Gopala Krishna Murty |
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Designation : |
Director |
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Address : |
7-B,
Sanjeev Areddy Nagar, Hyderabad-500038, India |
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Date of Birth/Age : |
16.01.1931 |
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Date of Appointment : |
30.08.2004 |
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Name : |
Ms.
Maria Spoelgen |
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Designation : |
Director |
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Address : |
Deg,
Belvederestrasse, 40, 50933, Koln, Germany |
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Date of Birth/Age : |
12.04.1956 |
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Date of Appointment : |
30.08.2004 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
|
Gland
Celsus Biochemicals Private Limited |
2089600 |
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Dr.
P.V.N. Raju |
17700 |
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Mrs.
P. Suryakantam |
13000 |
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Mrs.
K. Jhansi Lakshmi |
46000 |
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Mrs.
S. Kanaka Durga |
53900 |
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Dr. P.
Ravindranath |
70300 |
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Dr.
Sagi N. Raju |
7500 |
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Mr. K.
Aravind Raju |
12000 |
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Dr. P.
Tirumala Raju |
4500 |
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Mr.
B.V.S. Sagar |
5000 |
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Mr. B.
Tirumala Kumar |
7000 |
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Mr.
Shabbir Taher Chass |
8300 |
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Mr.
Kuresh Tahar Chass |
8300 |
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Mr.
Helmut Vetter and Mr. Jenik Radon |
899800 |
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Dr. V.
P. Raju |
269500 |
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Jeshta
Farms Private Limited |
200000 |
|
Satabisha
Agro Private Limited |
200000 |
|
Sravana
Agro Private Limited |
200000 |
|
Rohini
Biotech Private Limited |
200000 |
|
Chitta
Farms Private Limited |
200000 |
|
DEG –
Deutsche Investitions MBH |
1200000 |
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Mrs.
Binaca Maria Vetter Kerkhoff |
38700 |
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Fincity
Investments Private Limited |
280000 |
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SNR
Investments Private Limited |
280000 |
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Mrs.
S. Kanaka Durga |
53900 |
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Veeyes
Investments Private Limited |
280000 |
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Mr.
Jenik Radon |
36500 |
|
Ethigen
Labs Private Limited |
293200 |
|
Questar
Laboratories Private Limited |
293200 |
|
Hansgiri
Greenlands Private Limited |
210000 |
|
Vishnuipadi
Greenlands Private Limited |
200000 |
|
Arunagiri
Agro-farms Private Limited |
133000 |
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Mr.
Udo J. Vertter and Mr. Jenik Radon |
147400 |
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Mr.
Klaus Schoenwetter and Mr. Jenik Radon |
108700 |
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Mr.
Rajiv Dutta |
100000 |
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Smith
Barney as IRA Custodian, FBO Mr. Jenik Radon |
85400 |
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Ms.
Kaara Radon |
198300 |
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Mr.
Donald Hugh Keenan |
70500 |
|
Ms.
Radha Raju Vegesna |
108900 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Small
Volume Parentals (SVPs) Including Pre Filled Syringes (PFSs). |
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Products : |
Its product range includes Ø
Heparin Ø
Indeparin Ø
Protomine Sulphate Ø
Ciprofloxacin Ø
Diclofenac
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Exports to : |
USA
& European Countries |
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Imports from : |
Japan,
China, & Germany |
GENERAL
INFORMATION
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Customers : |
End
User |
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No. of Employees : |
500 |
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Bankers : |
Syndicate Bank Khairatabad, Hyderabad-500004, Andhra Pradesh, INDIA Export-Import Bank of India Centre One, World
Trade Centre, Cuffe Parade, Mumbai-400005 |
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Banking Relations : |
Satisfactory |
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Auditors : |
Y. Raghuram and Company Chartered
Accountants |
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Address : |
118, Phase –I, Kamalapuri, 8-3-833/ 118, Srinagar Colony, Hyderabad-500073, Andhra Pradesh, India |
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Associates/Subsidiaries : |
Gland Celcius Biochemical Private Limited 6-3-862, Ameerpet,
Hyderabad - 500016, Andhra Pradesh, India |
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Tel. No.: |
91-40-55621010 / 23541535 |
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Fax No.: |
91-40-23402229 |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
16000000 |
Equity Shares |
Rs.10 each |
Rs.160.000 millions |
|
1000000 |
Preference Shares |
Rs.10 each |
Rs.10.000 millions |
|
|
Total |
|
Rs.170.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
96,751,00 |
Equity Shares |
Rs. 10 each |
Rs.96.751 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.032006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
96.751 |
96.751 |
|
|
2] Share Application Money |
|
1.184 |
1.184 |
|
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3] Reserves & Surplus |
|
558.364 |
468.873 |
|
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
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NETWORTH |
|
656.299 |
566.808 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
525.912 |
519.492 |
|
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2] Unsecured Loans |
|
35.300 |
21.602 |
|
|
TOTAL BORROWING |
|
561.212 |
541.094 |
|
|
DEFERRED TAX LIABILITIES |
|
118.815 |
107.507 |
|
|
|
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|
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TOTAL |
|
1336.326 |
1215.409 |
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APPLICATION OF FUNDS |
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|
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FIXED ASSETS [Net Block] |
|
952.983 |
853.816 |
|
|
Capital work-in-progress |
|
41.480 |
64.819 |
|
|
|
|
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INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
233.891
|
147.689 |
|
|
Sundry Debtors |
|
161.046
|
130.878 |
|
|
Cash & Bank Balances |
|
15.871
|
39.153 |
|
|
Other Current Assets |
|
24.059
|
13.720 |
|
|
Loans & Advances |
|
21.330
|
25.941 |
|
Total Current Assets |
|
456.197
|
357.381
|
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
77.421
|
51.685 |
|
|
Provisions |
|
36.913
|
8.922 |
|
Total Current Liabilities |
|
114.334
|
60.607
|
|
|
Net Current Assets |
|
341.863
|
296.774
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
1336.326 |
1215.409 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
Sales Turnover [including other income] |
|
830.224 |
703.672 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
|
137.599 |
109.061 |
|
Provision
for Taxation |
|
48.108 |
26.404 |
|
Profit/(Loss)
After Tax |
|
89.491 |
82.657 |
|
|
|
|
|
|
Export
Value |
|
363.336 |
NA |
|
|
|
|
|
|
Total
Expenditure |
|
692.625 |
594.611 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
|
10.78 |
11.75 |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
|
16.57 |
15.50 |
|
|
|
|
|
|
|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
9.76 |
9.00 |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
|
0.21 |
0.19 |
|
|
|
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|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
|
1.03 |
1.06 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
|
3.99 |
1.20 |
LOCAL AGENCY
FURTHER INFORMATION
Form
8 Particular for creation or modification of charges
|
Name of the company |
Gland Pharma Limited |
|
Presented By |
Dr. Ravi Penmetsa, MD |
|
1) Date and description of instrument creating the change |
Unattested Deed of Hypothecation dated 09.09.2004 executed by Gland Pharma Limited (therein and hereinafter referred to as “the Borrower”) in favour of Export-Import Bank of India (“Exim Bank”), a certified true copy whereof is attached hereto. |
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2) Amount secured by the charge/amount owing on the securities of charge |
Loan of Rs.100 millions together with interest, compound interest, additional interest by way of liquidated damages (in case of default), costs, (legal costs on a full indemnity basis), charges, expenses and all other monies payable by the Borrower to Exim bank under the Loan Agreement dated the 09.09.2004 made between the Borrower and Exim Bank. |
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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 |
The whole of the Borrower’s movable fixed assets, both present and future, briefly described in Schedule III to the Deed of Hypothecation, including its movable Plant and machinery, spares and stores, tools and accessories, whether or not installed. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The charge created by the aforesaid Deed of Hypothecation shall operate as a continuing security by way of a first passu charge for the due repayment by the Borrower to Exim Bank of the Loan of Rs.100 millions together with payment of interest, compound interest, additional interest by way of liquidated damages (in case of default), costs (legal costs on a full indemnity basis), charges, expenses and all other monies payable by the Borrower to Exim Bank in terms of the said Loan Agreement. The said charge shall rank in the order of priority set out in Schedule IV to the Deed of Hypothecation. |
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5) Name and Address and description of the person entitled to the charge. |
Export-Import Bank of India Centre One World Trade Centre Cuffe Parade Mumbai-400005 |
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6) Date and brief description of instrument modifying the charge |
Not Applicable |
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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. |
Not Applicable |
Established in the year 1978 as an exclusive facility for Small Volume Parenterals (SVPs), Subject has developed into a progressive and quality conscious organization serving the pharmaceutical needs of diverse markets across the globe.
The Company has world-class & world-scale facilities for injectables set up in collaboration with Vetter Group, Germany. The collaboration with Vetter provides Subject a technological edge in injectables and specifically in Pre Filled Syringes.
The Company is constantly upgrading its operations and facilities to meet current Good Manufacturing Practice (cGMP) standards. It has earned a position of leadership in the country in injectables manufacture.
Subject is a research-focused organization continuously developing niche products for the Indian and global pharmaceutical markets. It has pioneered Heparin technology in India and has a position of leadership in the GlycosAminoGlycans (GAGs) range of molecules. The company manufactures Active Pharmaceutical Ingredients (APIs) and injectable formulations for niche segments such as Osteoarthritis, Anti-coagulants, Gynaecology, and Ophthalmology.
Facilites
Subject has fully integrated facilities for
manufacturing injectables located at Dundigal, about 25 kms from the city of
Hyderabad. The facilities are ISO 9001 and WHO-cGMP certified and approved US-FDA.
The integrated facilities comprise the Manufacturing lines, QA/ QC, Packing, Warehouse, Utilities and R&D in a single location.
API
Facilities
Subject develops Active Pharmaceutical Ingredients (APIs) for niche segments such as Anticoagulants, Osteoarthritis, Ophthalmology, Anaesthetics and Gynaecology.
Most of these APIs are low-volume (5-10 kg batch size) products that are
delivered in injectables, thus drawing on the company’s manufacturing
strengths.
Quality
control :
Subject’s QC department has a well equipped instrumentation lab to monitor critical systems like clean rooms, water systems, personnel flow, material flow and utilities to ensure their compliance to specifications. The QC & Analytical lab conducts vigorous analytical tests at all stages, from raw materials to finished products.
The QC team offers ICH stability storage conditions, protocol design, real time
and accelerated stability testing to meet regulatory requirements.
Subject’s analytical development scientists continuously develop and validate cleaning methods to detect residual product in formulation tanks and product contact equipment.
Research & Development
Subject’s R&D focuses on two areas: Chemistry and Formulation development. This complements the Company’s strength in injectables and its leadership in the GAGs range of molecules.
The R&D is involved in developing generic pharmaceuticals encompassing
small molecules, biologics and protein pharmaceuticals for the osteoarthritis,
anti-coagulants, ophthalmology, gynaecology and anti-cancer segments. Most of
the products are delivered as injectables.
The R&D team comprises highly skilled professionals working in complete
synergy. The requisite support is extended by means of a well-equipped lab with
modern infrastructure.
The R&D’s focus on new products and formulations will make the company a
significant player in the generics market worldwide.
Product
Subject's Product strategy is an integration of its strengths in GAGs and Pre-Filled Syringes. The Company has launched many niche molecules in the domestic markets and is also marketing the same in other near regulated markets.
In keeping with the strengths, the company chooses products that fit into a
common pattern:
Possibility for delivery in syringes or other injectables.
Application in niche segments of Cardiology, Anticoagulants, and Anaesthetics - Institutional products.
Through its research, development and manufacturing, the company is committed to deliver products that consistently meet or exceed the expectations of its customers. It ensures this commitment through design of quality products, efficient production, quality assurance systems, reliable delivery, and continued service of its products.
Services:
Subject provides a complete range of solutions for Formulation Development of various injectables including biotechnology products.
Subject also offers services for contract manufacturing a range of injectables. Thus, Subject provides value-added total solutions in injectables for the global markets.
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.33 |
|
UK
Pound |
1 |
Rs.87.49 |
|
Euro |
1 |
Rs.58.88 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
53 |
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/normal. |
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 |