MIRA INFORM
REPORT
|
Report
Date : |
18.07.2007 |
IDENTIFICATION DETAILS
|
Name : |
BASF INDIA LIMITED |
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Registered
Office : |
RBC, |
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Country: |
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Financials
(as on) : |
31.03.2007 |
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Date
of Incorporation : |
13.05.1943 |
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Com.
Reg. No.: |
3972 |
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CIN
No.: [Company
Identification No.] |
L33112MH1943FLC003972 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
MUMB00133A |
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|
Legal
Form : |
Subject
is a Public Limited Liability Company with 50% of its equity capital being
held by the foreign collaborator BASF AG, 67056, |
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Line
of Business : |
Manufacturing and Marketing of Expandable Polystyrene
(Styropor), Carbendazim, Leather Auxiliaries (Organic Chemicals), Oil &
Well Chemicals, Leather Auxiliaries, Finishing Agents & Pigments, Leather
Chemicals & Auxiliaries including Metal Complex, Dyes & Acrylic
Polymers, Pesticides and Dyestuffs & Other Chemicals. |
RATING
& COMMENTS
|
MIRA’s
Rating : |
Aa |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum
Credit Limit : |
USD
12136000 |
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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 part of multinational BASF Group. Available information indicates high
financial responsibility of the company. Financial position of the company is
good. Business is active. Payments are always correct and as per commitments. The
company can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
|
Registered
Office : |
RBC, |
|
Tel.
No.: |
91-22-56618000 |
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Fax
No.: |
91-22-24930653 |
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E-Mail
: |
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Website: |
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Works: |
v
Thane Tel. No. 91-22-55917400 Fax. No. 91-22-55917230 v
Bala Thokur Village,
Surathkal-Bajpe Road, Mangalore Taluka, Dakshina Kannada District, Karnataka,
India v
83/2, Demni Village, Dena Bank Road, Dadra – 396 191, v
Village Dahej, Taluk Vagra, Dist. Bharuch – 392130, Tel. No. 91-2641-256021 Fax. No. 91-2641-256022 |
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Head
Office: |
v
RBC, Tel. No. 91-22-56618000 Fax. No. 91-22-24950512 v
Thane Tel. No. 91-22-55917400 Fax. No. 91-22-55917230 |
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Branches: |
Located
at v
Tel. No. 91-824-270670 Fax. No. 91-824-270025 v
Ashram Road, Tel. No. 91-79-26583074 Fax. No. 91-26581447 v
13/A, Tel. No. 91-33-22201354 Fax. No. 91-33-22480854 v
46, Tel. No. 91-44-28113561 Fax. No. 91-44-28115956 v
203, Demni Village, Dena Bank Road, Dadra – 396191, Tel. No. 91-260-2668937 Fax. No. 91-260-2668652 v
502A, 5th Floor, 3-6-237-Lingapur La Building, Himayat
Nagar, Tel. No. 91-40-23226166 v
Plot No. C-12, Tel. No. 91-512-2461732 v
17-18, Kailash Enclave, Lala Lajpat Rai Marg, Tel. No. 91-11-51596400 Fax. No. 91-11-51596496 v
Post Box No. 7304, Lal Bahadur Shastri Marg, Bhandup (West), Mumbai –
400078, Tel. No. 91-22-25461471 Fax. No. 91-22-25644351 v
147, Mumbai – Tel. No. 91-20-27469681 Fax. No.
91-20-27464083 |
DIRECTORS
|
Name : |
Mr. Prasad Chandran |
|
Designation
: |
Chairman & Managing Director |
|
Qualification
: |
B.Sc. (Hons.),
Diploma in Industrial Chemistry, M.B.A. |
|
Experience
: |
29 Years |
|
Date
of Appointment : |
02/04/2000 |
|
Previous
Employment: |
Searle
India Limited – Executive Director (2 years) |
|
|
|
|
Name : |
Mr. R. E. Vaz |
|
Designation
: |
Chief Executive
– Performance Chemicals |
|
Date
of Appointment : |
1st
October, 1999 |
|
|
|
|
Name : |
Mr. S.
Kumarasamy |
|
Designation
: |
Chief
Executive – Crop Protection Chemicals |
|
Date
of Appointment : |
18th
January, 2002 |
|
|
|
|
Name : |
Dr. Harald Lauke |
|
Designation
: |
Director |
|
Date
of Appointment : |
01/10/2002 |
|
|
|
|
Name : |
Dr. E.
Baumgartner |
|
Designation
: |
Director |
|
Date
of Appointment : |
17th
April, 2002 |
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|
|
|
Name : |
Mr. Boon Yeow Yee |
|
Designation
: |
Director |
|
Date
of Appointment : |
21/04/2004 |
|
|
|
|
Name : |
Mr. K. R.
Coorlawala |
|
Designation
: |
Director |
|
Date
of Appointment : |
10th
February. 1975 |
|
|
|
|
Name : |
Mr.
Pradip P. Shah |
|
Designation
: |
Director |
|
Date
of Appointment : |
31st
January, 2000 |
|
|
|
|
Name : |
Mr. R. A.
Shah |
|
Designation
: |
Director |
|
Date
of Appointment : |
25th
April, 1968 |
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|
|
|
Name : |
Mr. R. R.
Nair |
|
Designation
: |
Director |
|
Date
of Appointment : |
30th
March, 2001 |
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|
|
|
Name : |
Mr. L. S. Naik |
|
Designation
: |
Chief Executive – Dispersions, Specialities,
Pigments & Printing Inks |
|
Date
of Appointment : |
1st October, 1999 |
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|
|
|
Name : |
Dr. W. Burgert |
|
Designation
: |
Director |
|
Date
of Appointment : |
1st October, 1999 |
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|
|
|
Name : |
Mr. E. Hilgemann |
|
Designation
: |
Director |
|
Date
of Appointment : |
28th July, 1998 |
|
|
|
|
Name : |
Mr. S. Ramnath |
|
Designation
: |
Director |
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|
|
|
Name : |
Mr. Tilman Krauch |
|
Designation
: |
Director |
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|
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|
Name : |
Mr. Rainer Diercks |
|
Designation
: |
Director |
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|
Name : |
Mr. Raman Ramachandran |
|
Designation
: |
Director |
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|
|
|
Name : |
Mr. Deepak Thuse |
|
Designation
: |
Director |
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|
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|
Name : |
Mr. S. Khanolkar |
|
Designation
: |
Director |
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|
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|
Name : |
Mr. Dr. G. Ramaseshan |
|
Designation
: |
Director |
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|
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|
Name : |
Mr. R. Y. Vaidya |
|
Designation
: |
Director |
KEY
EXECUTIVES
|
Name : |
Mr. M. R.
Iyer |
|
Designation
: |
Company
Secretary |
MAJOR
SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Foreign
Promoters |
14853020 |
52.69 |
|
Directors
and relatives of Directors |
450 |
0.00 |
|
NRIs,
OCBs and FIIs |
1126204 |
4.00 |
|
Financial
Institutions and Mutual Funds |
4016904 |
14.25 |
|
Nationalised
and Other Banks |
35186 |
0.12 |
|
Domestic
Corporate Bodies |
1005674 |
3.57 |
|
General
Public including shares in transit |
7152710 |
25.37 |
|
Total |
28190148 |
100.00 |
BUSINESS
DETAILS
|
Line
of Business : |
Manufacturing and Marketing of Expandable Polystyrene
(Styropor), Carbendazim, Leather Auxiliaries (Organic Chemicals), Oil &
Well Chemicals, Leather Auxiliaries, Finishing Agents & Pigments, Leather
Chemicals & Auxiliaries including Metal Complex, Dyes & Acrylic
Polymers, Pesticides and Dyestuffs & Other Chemicals. |
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Products
: |
|
PRODUCTION STATUS
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
Expandable Polystyrene (Styropor) |
MT |
20000 |
13470 |
|
Leather Auxiliaries (Organic Chemicals) |
MT |
15000 |
11195 |
|
Oil & Well Chemicals |
MT |
3250 |
Nil |
|
Leather Auxiliaries, Finishing Agents &
Pigments |
MT |
7350 |
5795 |
|
Leather Chemicals & Auxiliaries including
Metal Complex Dyes & Acrylic Polymers |
MT |
22225 |
19732 |
|
Pesticides |
|
|
|
|
Basic Production |
MT |
1670 |
1132 |
|
Formulation |
MT |
-- |
1460 |
|
|
KL |
-- |
3837 |
GENERAL
INFORMATION
|
No. of
Employees : |
990 |
|
|
|
|
Bankers
: |
Ř
State Bank of Ř
Union Bank of Ř
Bank of Ř
Citibank N.A. Ř
Deutsche Bank Ř
Standard Chartered Grindlays Bank Limited Ř
ABN Amro Bank N.V. Ř
HDFC Bank Limited |
|
|
|
|
Facilities : |
Bank Overdraft /Facilities of Rs. 90.5 millions |
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|
|
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Banking Relations : |
Good |
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|
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Auditors
: |
Deloitte Haskins & Sells Chartered
Accountants |
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|
|
|
Internal
Auditor: |
Mahajan And Aibara Chartered Accountants |
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|
|
|
Associates: |
·
BASF Agro B.V. ·
·
Bassell Polyolefin Company, NV ·
BASF Petronas Chemicals SDN ·
BASF Styrenics Private Limited ·
BASF AG ·
BASF Company Limited ·
BASF Japan Limited ·
BASF Bangladesh Limited ·
P. T. BASF ·
BASF Finlay Private Limited ·
Funfte BASF Projektentwicklungsgesellschaft mbH ·
BASF Corporation ·
M. Dohmen Italia ·
BASF Curtex S.A. ·
BASF JCIC Neopentylglycol Company ·
BASCOM AG ·
BASF Industries Private Limited ·
BASF Taiwan Limited ·
BASF (Thai) Limited ·
BASF Vita |
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|
|
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Subsidiaries: |
Ř
BASF Curtex S. A. Ř
BASF Finlay Private Limited Ř
BASF Phillipines Inc. Ř
BASF South East Asia Pte Limited Ř
BASF Taiwan Limited Ř
BASF Ř
BASF ( Ř
PT BASF Ř
BASF China Limited Ř
BASF Colorants and Chemicals Company Limited Ř
BASF Drucksysteme Schweiz GmbH Ř
Elastogran GmbH Ř
Elenac GmbH Ř
Kali Und Salz Betelligungs AG Ř
BASFD Industries Private Limited |
|
|
|
|
Membership: |
Confederation
of Indian Industry |
CAPITAL
STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs. 10/- Each |
Rs. 300.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
28189 |
Equity Shares |
Rs. 10/- Each |
Rs. 0.281 million |
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 |
281.900 |
281.900 |
281.900 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
2752.100 |
2482.100 |
2253.000 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3034.000 |
2764.000 |
2534.900 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
0.000 |
0.000 |
90.500 |
|
|
2]
Unsecured Loans |
5.100 |
13.000 |
9.200 |
|
|
TOTAL BORROWING |
5.100 |
13.000 |
99.700 |
|
|
DEFERRED
TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3039.100 |
2777.000 |
2634.600 |
|
|
|
|
|
|
|
|
APPLICATION
OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED
ASSETS [Net Block] |
995.000 |
639.000 |
769.700 |
|
|
Capital
work-in-progress |
49.900 |
65.900 |
13.600 |
|
|
|
|
|
|
|
|
INVESTMENT |
119.000 |
29.500 |
0.000 |
|
|
DEFERREX
TAX ASSETS |
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1152.600
|
1105.800 |
1198.400 |
|
|
Sundry
Debtors |
1450.800
|
1521.400 |
1735.500 |
|
|
Cash
& Bank Balances |
24.400
|
9.200 |
18.500 |
|
|
Other
Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans
& Advances |
842.600
|
635.600 |
457.100 |
|
Total Current Assets |
3470.400
|
3272.000 |
3409.500 |
|
|
Less : CURRENT LIABILITIES &
PROVISIONS |
|
|
|
|
|
|
Current
Liabilities |
1299.400
|
947.100 |
1317.800 |
|
|
Provisions |
295.800
|
282.300 |
240.400 |
|
Total Current
Liabilities |
1595.200
|
1229.400 |
1558.200 |
|
|
Net Current Assets |
1875.200
|
2042.600 |
1851.300 |
|
|
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3039.100 |
2777.000 |
2634.600 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales
Turnover |
8749.600 |
7716.400 |
7401.800 |
|
|
Other Income |
12.200 |
(66.500) |
261.200 |
|
|
Total
Income |
8761.800 |
7649.900 |
7663.000 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
779.000 |
703.700 |
598.600 |
|
|
Provision for Taxation |
278.100 |
249.600 |
218.900 |
|
|
Profit/(Loss) After Tax |
500.900 |
454.100 |
379.700 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Manufacturing Expenses |
296.600 |
226.900 |
216.800 |
|
|
Administrative Expenses |
594.400 |
628.900 |
564.400 |
|
|
Raw Material Consumed |
4740.800 |
4061.400 |
4325.000 |
|
|
Excise Duty |
1054.800 |
886.700 |
828.600 |
|
|
Employee cost |
653.000 |
550.400 |
501.700 |
|
|
Miscellaneous expenses |
297.500 |
158.800 |
152.600 |
|
|
Interest |
15.100 |
23.600 |
61.100 |
|
|
Power & Fuel |
221.900 |
189.000 |
170.100 |
|
|
Depreciation & Amortization |
108.700 |
220.500 |
244.100 |
|
Total
Expenditure |
7982.800 |
6946.200 |
7064.400 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT /
Total Income |
(%) |
5.71
|
5.93 |
4.95 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.90
|
9.11 |
8.08 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
17.44
|
17.99 |
14.32 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.25 |
0.23 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.52
|
0.44 |
0.65 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.17
|
2.66 |
2.18 |
LOCAL
AGENCY FURTHER INFORMATION
BIODATA
Subject was incorporated as R A Cole Private Limited in May'43
and its name was changed to Indoplast Ltd in Jan '63. It got its present name
in Sep.'67. It is managed by the chairman and managing director P M Thampi. BIL
has a technical collaboration with BASF AG,
In Jan.'95, it came up with a rights issue at a premium of Rs 900.000 millions,
aggregating Rs 191.7 millions to set up a chemical complex at Mangalore to
manufacture leather chemicals and auxiliaries including metal complex dyes and
polymer dispersions, with technical knowhow from Subject, Germany. Commercial
production commenced in Mar.'96.
In 1996, it again raised Rs 575. millions by way of a rights issue in the ratio
2:5 at a price of Rs 125 per share to part finance the expansions and new projects
at its plants in Mangalore and Thane.
The Company's Mangalore factory has obtained ISO 9002 certification w.e.f5th
July 2000.
In a major move, the board of directors of BASF India has approved the scheme
of amalgamation of Cyanamid Agro (CAL) with the company effective from 1 Jan
2001. The share swap ratio has been determined by the board of directors at two
equity shares of BASF India (of Rs 10 each fully paid-up) for five equity
shares of
FIXED
ASSETS
The
company’s fixed assets of important value include
Formation of wholly owned subsidiary:
In line with the practice globally followed by Polyurethane business and with a
view to impart greater focus to the Polyurethane business in
The existing businesses of the Company include the activity of indenting and
trading in PU products. After the requisite approvals are received, BPIL will
commence manufacture of PU products. The indenting and trading activity of the
Company relating to PU products will be suitably integrated in BPIL.
Further, in the event of synergies with existing operations of your Company not
materializing, BASF AG or its affiliates will have the discretion to acquire
the Company's holding in BPIL, in 2008. This will be done on the basis of a
fair valuation of shares of BPIL, carried out by an independent valuer. In any
event, the value of the said shares shall not be lower than the original
investment value, appearing in the books of the Company
Others:
The chemicals supplied by the BASF Group cater to the requirements of a wide
range of user industries including pharmaceuticals, agrochemicals,
petrochemicals, plastics, fertilizers, organic and inorganic chemicals,
coatings, leather and textile processings.
The amended patent law provides significant growth opportunities to Indian
industries specially in the areas of pharmaceuticals, life sciences and
agrochemicals. The Company also expects to derive benefits by supplying quality
products, utilizing its strong business relationships with the user
industries.
The reduction in import duties also contributed to the increase in the indent
business activities of the Company.
The Company is in the process of enhancing its business presence by engaging in
merchandising activities, to enlarge the range of services to its
customers.
The outlook for chemicals business is favourable. Given the technological
excellence of BASF products coupled with technical service capabilities, the
Company is well positioned to take advantage of growth opportunities.
Technical Management:
The factories of the Company situated at Mangalore and Thane and the Corporate
office at Mumbai successfully underwent fully integrated ISO 9001:2000 (Quality
Management) and ISO 14001:1996 (Environmental Management) surveillance audit,
confirming the Company's commitment to quality and environmental management
standards.
CMT
REPORT [Corruption,
Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts,
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.40.36 |
|
|
1 |
Rs.82.23 |
|
Euro |
1 |
Rs.55.65 |
SCORE
& RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP
CAPITAL |
1~10 |
9 |
|
OPERATING
SCALE |
1~10 |
9 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
10 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT
LINES |
1~10 |
9 |
|
--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 |
YES |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
81 |
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 |