MIRA INFORM REPORT
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Report
Date : |
19.01.2007 |
IDENTIFICATION
DETAILS
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Name : |
HETERO LABS PRIVATE LIMITED |
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Registered
Office : |
Hetero House, H. No. 8-3-166 / 7 / 1, Erragadda,
Hyderabad - 500 018, Andhra Pradesh |
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Country
: |
India |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
10.03.1989 |
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Com.
Reg. No.: |
01-9723 |
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CIN
No.: [Company Identification No.] |
L24110AP1989PLC009723 |
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TAN
No.: [Tax Deduction & Collection Account No.] |
HYDP00777A |
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PAN
No.: [Permanent Account No.] |
AAACH5506R |
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Legal
Form : |
Private Limited Liability
Company. |
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Line
of Business : |
Manufacturers of Pentoprazole Sodium. |
RATING & COMMENTS
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MIRA’s
Rating : |
Ba |
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
5000000 |
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Status
: |
Satisfactory |
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Payment
Behaviour : |
Usually
Correct |
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Litigation
: |
Clear |
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Comments
: |
Subject is a well-established company engaged in manufacturing and
marketing bulk drugs and intermediates. Financial position of the
company is satisfactory. The Company’s business is going on smoothly. Trade
relations are reported as fair. Payments are correct and as per commitments. It can be considered normal for
business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered/
Corporate Office : |
‘Hetero House’, H. No. 8-3-166 / 7 / 1,
Erragadda, Hyderabad - 500 018, Andhra Pradesh, India |
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Tel.
No.: |
91-40-23704923/24/25 |
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Fax
No.: |
91-40-23704926/23714250 |
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E-Mail
: |
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Website
: |
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Area : |
3000 Sq. ft |
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Location : |
Owned |
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Regional
Office |
‘Hetero Drugs Limited’ 607/608, 6th Floor, Matharu
Arcade, Subhash Road, Ville parle (East), Mumbai – 400057, India |
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Tel.
No.: |
91-22-56910809 |
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Factory
1 : |
Survey No 10, IDA, Gaddapotharam, Khazapally
Village, Jinnaram Mandal, Medak District, Andhra Pradesh |
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Tel.
No.: |
91-8459-277100 |
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Factory
2 : |
Kazipally Village, Medak
District, Andhra Pradesh |
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Branches
: |
Located at :- 408, Sharda Chambers, 4th Floor, 15 New Marine Lines, Mumbai - 400 020,
Maharashtra |
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Tel.
No.: |
91-22-22066075/22065498/22065507 |
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Fax
No.: |
91-22-22066099 |
DIRECTORS
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Name : |
Dr. B. Partha Saradhi Reddy |
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Designation
: |
Director |
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Address
: |
Plot No.
389, Road No. 22/B, Jublihills Chequepost, Madhapoor Road, Hyderabad –
500038, Andhra Pradesh, India |
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Date
of Birth/Age : |
06.03.1954 |
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Date
of Appointment : |
05.12.1996 |
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Name : |
Mr. Chilukuri Mohan Reddy |
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Designation
: |
Whole Time Director |
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Address
: |
Flat No.
104, Sai Spurthi Apartments, Motinagar, Borabonda, Hyderabad – 500018, Andhra
Pradesh |
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Date
of Birth/Age : |
02.01.1969 |
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Date
of Appointment : |
01.04.2006 |
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Name : |
Mr. Bollareddy Narasa Reddy |
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Designation
: |
Whole Time Director |
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Address
: |
Plot No.
98, Sahlivahana Nagar, Kukatpally, Hyderabad, Andhra Pradesh |
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Date
of Birth/Age : |
10.08.1962 |
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Date
of Appointment : |
01.04.2006 |
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Directorship
in other Companies: |
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Name : |
Mr. A. V. Narasa Reddy |
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Designation
: |
Whole Time Director |
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Address
: |
Flat No.
201, Nandi Enclave, Siddartha Nagar, Hyderabad, Andhra Pradesh |
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Date
of Birth/Age : |
21.12.1963 |
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Date
of Appointment : |
01.04.2006 |
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Directorship
in other Companies: |
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MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Mr. B. Partha Saradhi Reddy |
429,760 |
32.26 |
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Mr. B. Kalavathi |
353,640 |
26.54 |
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Mr. B. Krishna Sinduri |
150,000 |
11.26 |
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Mr. B. Vamsi Krishna |
398,000 |
29.87 |
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Mr. M. Srinivas Reddy |
200 |
0.01 |
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Mr. B. Srinivas Reddy |
200 |
0.01 |
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Mr. B. Soma Kantham |
200 |
0.01 |
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Total |
1,332,000 |
100.00 |
BUSINESS DETAILS
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Line
of Business : |
Manufacturers of Pentoprazole Sodium. |
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Product
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Exports
to : |
USA, Canada, South America,
Europe and Afro-Asia. |
PRODUCTION STATUS
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Particulars |
Unit |
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Installed Capacity |
Actual Production |
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Bulk Drugs and Int |
Kg |
|
50000 |
41602 |
GENERAL INFORMATION
|
Suppliers
: |
v Ahlada Pharma Private Limited v Likhita Fabtech Engineers v Flexi Laboratories Private Limited
v Sabari Chemicals Private Limited v Srinija Drugs Private Limited v Flexit Jour Laboratories Private
Limited v Sweta Enterprise v Divya Lakshmi Engineering
Industries v Landsky Engineers Private Limited v Oscar Valves Private Limited v Ramko engineering Industries v Bhagyanagar Chlorides Private
Limited v Corey Organics Limited v Sonal Plasrubn Industries Private
Limited v Mahindra Chemicals Private Limited
v Vital Chemicals v Fibro Plast industries v Creative Pharmachem v Prasanthi Laboratories Private
Limited v Sri Chintan Pharma Chem Private
Limited |
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No. of
Employees : |
20 |
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Bankers
: |
v Andhra
Bank Industrial
Finance Branch, Ameerpet, Hyderabad - 500 016, Andhra Pradesh v Bank of
India PTI Building, Khairatabad Branch, Hyderabad v
State
Bank of Hyderabad, Sanath Nagar Branch Hyderabad v Bank of Bahrain and Kuwait BBC 6-3-550, Somajiguda Hyderabad – 500082 |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors
: |
M. V. Narayana Reddy & Company Chartered Accountants |
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Address
: |
D. No. 8-3-941, Flat No. 504, Vijayasree
Apartments, Opposite Kamma Sangham, Ameerpet, Hyderabad – 500073 Andhra
Pradesh |
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Tel
No.: |
91-40-23743975 / 23744448 |
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Associates/Subsidiaries
: |
v Hetero
Drugs Limited Hetero House, H. No.
8-3-166/7/1, Erragada, Hyderabad - 500 018, Andhra
Pradesh Tel. 91-40-2370 4923 – 25 Fax. 91-40-2370 4926 / 4250 E-Mail. 1. contact@heterodrugs.com
Website. http://www.heterodrugs.com -
Engaged in manufacturing and marketing of active
pharmaceutical ingredients and intermediate chemicals. v Hetero
International, Mumbai, Maharashtra v Symed
Labs Private Limited, Hyderabad, Andhra Pradesh v Cirex
Pharmaceuticals Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
15,00,000 |
Equity Shares |
Rs. 10/- Each |
Rs.
15.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
133,20,000 |
Equity Shares |
Rs. 10/- Each |
Rs.
13.320 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS
FUNDS |
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1] Share
Capital |
13.320 |
13.320 |
13.320 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3]
Reserves & Surplus |
1244.961 |
548.135 |
391.613 |
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4]
(Accumulated Losses) |
---- |
---- |
0.000 |
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NETWORTH
|
1258.281 |
561.455 |
404.933 |
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LOAN
FUNDS |
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1]
Secured Loans |
726.054 |
602.114 |
450.047 |
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2]
Unsecured Loans |
0.000 |
50.000 |
5.000 |
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TOTAL
BORROWING
|
726.054 |
652.114 |
455.047 |
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|
DEFERRED
TAX LIABILITIES |
78.611 |
72.390 |
50.677 |
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TOTAL
|
2062.946 |
1285.959 |
910.657 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
811.535 |
519.165 |
346.912 |
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Capital work-in-progress
|
0.000 |
0.000 |
0.000 |
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INVESTMENT
|
53.848 |
30.129 |
23.130 |
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DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
|
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Inventories
|
548.802
|
441.282
|
297.433
|
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Sundry Debtors
|
938.386
|
419.451
|
532.827
|
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Cash & Bank Balances
|
46.037
|
21.770
|
13.137
|
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Other Current Assets
|
0.000
|
0.000
|
0.000
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Loans & Advances
|
406.681
|
109.251
|
73.743
|
Total Current Assets
|
1939.906
|
991.754
|
917.140 |
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Less : CURRENT LIABILITIES & PROVISIONS
|
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Current Liabilities
|
585.384
|
238.012
|
363.210
|
|
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Provisions
|
157.696
|
17.293
|
13.332
|
Total Current Liabilities
|
743.080
|
255.305
|
376.542
|
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Net
Current Assets
|
1196.828
|
736.449
|
540.598
|
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MISCELLANEOUS EXPENSES
|
0.004 |
0.011 |
0.017 |
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PRE OPERATIVE EXPENDITURE
|
0.731 |
0.205 |
0.000 |
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TOTAL
|
2062.946 |
1285.959 |
910.657 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
3836.853 |
1648.889 |
1338.824 |
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|
Profit/(Loss) Before Tax
|
1119.388 |
331.970 |
240.951 |
Provision for Taxation
|
314.209 |
87.877 |
63.318 |
Profit/(Loss) After Tax
|
805.179 |
244.093 |
177.633 |
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Export Value
|
N.A. |
N.A. |
303.854 |
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Import Value
|
N.A. |
N.A. |
366.284 |
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Total Expenditure
|
2717.465 |
1316.919 |
1097.873 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
PAT / Total Income
|
|
21.03 |
14.80
|
13.26 |
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Net
Profit Margin(PBT/Sales)
|
|
29.17 |
20.13
|
18.00 |
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Return
on Total Assets(PBT/Total Assets}
|
|
55.37 |
21.97
|
19.06 |
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Return
on Investment (ROI)(PBT/Networth)
|
|
0.88 |
0.59 |
0.60 |
|
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|
Debt Equity Ratio(Total
Liability/Networth)
|
|
1.16 |
1.61
|
2.05 |
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|
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|
|
Current Ratio(Current
Asset/Current Liability)
|
|
2.61 |
3.88
|
2.43 |
LOCAL AGENCY FURTHER INFORMATION
History
Established in the year 1993, with the
motto to be the best in the API manufacturing, Hetero today embodies the vision
of a top notch player in developing and commercialising products catering to a
variety of therapeutic categories, integrating into a leading finished dosage
manufacturer.
True to the Statement, "Where the
Future Started Yesterday", with a foresight on the current trends in the
Pharmaceutical Market, Hetero has grown from strength to strength, combining
its Research Strengths, Manufacturing Capabilities ,Human Resources and well
established quality management system.
With full-fledged marketing
capabilities, the company has been able to market its products in over 80
countries in Asia, Middle-east, Eastern Europe and Latin America.With its compliance
to the most stringent regulatory requirements, Hetero has today gained foothold
to market several of its APIs in the United States, Canada and Europe.
With all nine manufacturing facilities
being supported by excellent infrastructure and compliance to the GMP
requirements , Hetero has crossed numerous milestones in a comparatively short
period since its inception.
The company has been scaling new heights on a continual
basis. These achievements have been the result of concentrated efforts on the part
of different functions within the organization to achieve the organizational
goal of being a leader.
In its path to success, hetero has seen many a milestone
being crossed and achieved many awards on various fronts. Awards of exemplary
work in Research and Development and marketing are just a few to name.
A track of few events that saw hetero reaching its zenith of
glory are :
1] National Award for “Best efforts in research and
development” from the department of science and research ministry of science
and technology, government of India, in the year 1996.
2] Highest exporter award (for the year 1999) against stiff
competition from international recognized competitors.
3] Approval of the API facilities by USFDA for compliance to
CGMP noprms.
4] Approval of the finished dosage facilities by WHO for the
supply of anti-retroviral drugs.
Fixed Assets
v Land and Site Development
v Factory Building
v Electrical Equipment
v R & D Equipment
v ETP Machinery
v Furniture and Fixture
v Office Equipments
v Vehicles
v
Computers
Generic Names of Principal Products/Services of the company are as
under:-
v Bulk
Drugs and Intermediates
v Conversion
Charges
Sales, Production and
Profit
Sales and Other Income
for the company stood at Rs. 1425.757 millions as against Rs. 746.763 millions
in the previous year thereby 91 % increase in turnovers.
The company achieved a production of 41612 kg. Of Bulk Drugs
and Drug Intermediates against 40899 kg. Of production in the previous year.
which accounts for 1.74 % increase in production.
The company has
earned a net profit Rs. 177.633 millions during the year under review as
against a net profit of Rs. 54.529 Millions the previous year thereby denotes
2.26 times growth.
Review of Operation
During the year the Company has introduced the following drugs in the
domestic as well as in export markets.
|
Product |
Therapatic Use |
|
Ariprazole |
Antireoplastic |
|
Capecitebine |
Antireoplastic |
|
Gemcitabine HCI |
Antireoplastic |
|
Imatinib Masylate |
Antireoplastic |
|
Ezetimibe |
Antiperlipoproteinemic |
The new products made a major contribution to the turnover and profit
of the Company for the year 2003-2004. The Management is planning to introduce
some more new products during the current year.
The
Company during the year under review made exports of Rs. 593.046 millions
(including deemed exports of Rs. 286.920 millions) as against exports of Rs.
296.200 millions (including deemed exports of Rs. 167.802 millions) of previous
year.
Joint
Venture
The
Board of Directors are pleased to inform that the company has entered into a
joint venture agreement to set up a company in New York, USA with group company
Hetero Drugs Limited and two foreign entities viz, Shilpa Saketh Reality Inc.
and Smart IMS Inc. The name of Joint venture is Pharmagen Inc. The investment
of the said joint venture is US $ 4 million. The company’s investment share in
the said joint venture is US $ 652800.
|
|
31.03.2004 |
31.03.2003 |
Earnings in Foreign Currency
|
Rs 303.854 Millions |
Rs 127.560 Millions |
|
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|
|
Value of Imports
|
Rs 366.284 Millions |
Rs 174.327 Millions |
Information about secondary business segments
|
|
India |
Outside India |
|
Revenue by geographical market |
1114.571 |
306.125 |
Contingent
Liabilities
|
Bank Guarantees |
18.587 |
2.901 |
|
Letters of Credit |
53.231 |
47.154 |
|
Bills discounted with Banks |
21.087 |
22.500 |
Secured
Loans
Term Loans
The term loans referred
in Schedule – 3 are secured by a Pari Passu first charge on all the movable and
immovable assets of the company, both present and future, in favour of IDBI,
Bank of Bahrain and Kuwait B.S.C. and State Bank of Hyderabad save and except
specific moveable charged to banks for
working capital borrowings and further guaranteed by two directors of the
company. Corporate guarantee of Hetero Drugs Limited for Rs. 40.000 millions was
given to IDBI.
Working Capital Loans
The
working capital loans are Secured by Hypothecation of raw materials,
Stiocks-in-process, Finished goods and Book debts and first charge on Plant and
Machinery worth Rs. 6.139 Millions as on 31.03.1997 and personal guarantee of
two Directors of the company.
Vision:
A vertically integrated healthcare company offers a wide range of
active pharmaceutical intermediates and finished dosage forms.
Research:
R
& D is the key function area of the company. Recognising, at its very
inception, the advent of knowledge societies, the company had always regarded R
& D as a vital engine of growth. R & D helped the company to become a
trend-setter by developing a number of new molecules in several therapeutic categories
– anti – hypertensive, antiuicerative, antibacterial, antifungal,
antidepressant, antipsychotic and antiviral for the first time in India. The
fact that the company was awarded the National Award for best efforts in R
& D in industry by the department of scientific & industrial research,
Ministry of Science & Technology, Government of India, provides ample proof
of its success in this field.
Environment:
As
conscientious global citizen, the company regards the environment as a prime
concern. In pursuit of its social responsibilities, it has built its own
facilities or treatment of effluents. Emphasis is laid on re-use of waste to
conserve precious natural resources. Tree plantation programmes have been
initiated to provide a lush green cover around the plant.
|
Name
of the company |
HETERO LABS LIMITED |
|
1) Date
and description of instrument creating the change |
Agreement
of Mortgage/ Charge dated 29.09.2006 |
|
2) Amount
secured by the charge/amount owing on the securities of charge |
Rs.
27.500 Millions |
|
3) Name
and Address and description of the person entitled to the charge. |
Bank of India Khairatabad Branch, PTI Building, Masab Tank, Hyderabad –
500082, Andhra Pradesh, India |
|
4)
Date and brief description of
instrument modifying the charge |
29.09.2006 |
|
Name
of the company |
HETERO LABS LIMITED |
|
1) Date
and description of instrument creating the change |
Agreement
of Modification of Charge dated 30.11.2006 |
|
2) Amount
secured by the charge/amount owing on the securities of charge |
Rs.
670.000 Millions |
|
3) Name and
Address and description of the person entitled to the charge. |
State Bank of Hyderabad, Sanath Nagar Branch Industrial Area, Sanath Nagar, Hyderabad – 500018, Andhra
Pradesh, India |
|
4)
Date and brief description of
instrument modifying the charge |
30.11.2006 |
|
5)
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. |
Agreement
of modification of charge dated 10.10.2003 of Rs 270.000 Millions modified on
31.11.2006 with Rs 670.000 Millions |
|
Name
of the company |
HETERO LABS LIMITED |
|
1) Date
and description of instrument creating the change |
Date
25.08.2004 Composite
Agreement |
|
2) Amount
secured by the charge/amount owing on the securities of charge |
Term Loan
of Rs 150.000 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 pari-passu charge on all existing and future fixed
assets with other term lenders. |
|
4) Gist of the terms and conditions
and extent and operation of the charge. |
Finer
rate at BMPLR + 0.25% -3.25% i.e. 10.5% +0.25%-3.25% = 7.5% p.a. with monthly
rests 20
Quarterly installments commencing from June 2005 (interest is to be paid as
and when due) |
|
5) Name and Address and description
of the person entitled to the charge. |
Andhra
Bank, SCF Branch, Somajiguda, Hyderabad |
|
6) Date and brief description of instrument modifying the charge |
N.A |
|
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. |
N.A. |
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.44.25 |
|
UK Pound |
1 |
Rs.87.30 |
|
Euro |
1 |
Rs.57.36 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT
LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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 |
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 |