MIRA
INFORM REPORT
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Report Date : |
18.07.2007 |
IDENTIFICATION DETAILS
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Name : |
AARTI INDUSTRIES LIMITED |
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Registered Office : |
Plot Nos. 801,
801/23, G.I.D.C. Estate, Phase III, Vapi – 396195, District Valsad, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
28.09.1984 |
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Com. Reg. No.: |
04-7301 |
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CIN No.: [Company
Identification No.] |
L24100GJ1984PLC007301 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
SRTA02524E |
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PAN No.: [Permanent
Account No.] |
AABCA2787L |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing, Importing and Exporting of Organic Chemicals. |
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 9250000 |
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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 pharmaceutical company having satisfactory track. It is controlled and managed by Gogri family who are resourceful and experienced businessmen. Their trade relations are 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 : |
Plot Nos. 801, 801/23, GIDC Estate, Phase III, Vapi – 396
195, District Valsad, |
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Tel. No.: |
91-22-25690411 / 2 / 3 / 25918195 |
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Fax No.: |
91-22-25904806 / 25653186-87 |
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E-Mail : |
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Website : |
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Corporate Office : |
Udyog Kshetra, II Floor, L.B.S. Marg, Mulund – |
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Tel. No.: |
91-22-65976666 / 25918195 |
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Fax No.: |
91-22-25653234 / 25653185 |
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Factory : |
·
Plot Nos. 902, GIDC Estate, Phase II, Vapi –
396 195, District Valsad, ·
Plot Nos. 752-753-754 Sarigam Industrial Area,
Sarigam, Taluka Umargaon, District Valsad, · Plot Nos. 758/1, 758/2, Jhagadia Mega Estate, Village Kapalsadi, Taluka Jhagadia, District Bharuch, Gujarat, India ·
Plot No. K-18, MIDC, Tarapur, District Thane, ·
Plot No. E-50, MIDC, Tarapur, District Thane, |
DIRECTORS
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Name : |
Mr. Chandrakant V. Gogri |
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Designation : |
Chairman |
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Name : |
Mr. Rajendra V. Gogri |
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Designation : |
Vice Chairman and
Managing Director |
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Name : |
Mr. Shantilal T. Shah |
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Designation : |
Vice Chairman |
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Name : |
Mr. Parimal H. Desai |
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Designation : |
Whole time
Director |
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Name : |
Mr. Ramdas M. Gandhi |
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Designation : |
Independent
Director |
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Name : |
Mr. Vijay H. Patil |
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Designation : |
Independent
Director |
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Name : |
Mr. Laxmichand K. Jain |
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Designation : |
Independent Director |
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Name : |
Mr. Manoj M. Chheda |
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Designation : |
Whole time
Director |
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Name : |
Mr. Rashesh C. Gogri |
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Designation : |
Whole time
Director |
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Name : |
Ms. Hetal Gogri Gala |
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Designation : |
Whole time
Director |
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Name : |
Mr. Kirit R. Mehta |
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Designation : |
Whole time
Director |
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Name : |
Mr. Murlidhar R. Mondkar |
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Designation : |
Director |
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Date of Appointment: |
27.07.2002 |
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Date of Ceasing: |
27.03.2003 |
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Name : |
Mr. Haresh K. Chheda |
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Designation : |
Independent
Director |
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Date of Appointment: |
27.03.2003 |
KEY EXECUTIVES
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Name : |
Mr. Mohan P. Sonar |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters - Indian |
32724612 |
44.95 |
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Bodies Corporate |
1788669 |
2.45 |
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NRIs/OCBs |
389064 |
0.53 |
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Banks, Financial Institutions |
7500 |
0.01 |
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Mutual Funds |
8223662 |
11.29 |
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FII |
3665654 |
5.03 |
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Public |
26010263 |
35.74 |
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Total
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72809424 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing, Importing and Exporting of Organic Chemicals. |
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Products : |
Product
Description ITC Code 29049005 Product Description Ortho Nitro Chloro Benzene ITC Code 29049004 Product Description Sulphuric Acid ITC Code 28070001 Product Description Quinalphos ITC Code 38081021 Product Description Carbendizum ITC Code 29242909 Product Description NN Dhe MCA ITC Code 29241019 Para Nitro
Chloro Benzene (PNCB) |
PRODUCTION STATUS
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Particulars |
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Installed
Capacity |
Actual
Production |
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Nitro Chloro Benzenes (NCBs) |
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60000 |
26612484 |
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Sulphuric Acid and Allied Products |
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200000 |
199386614 |
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Ortho Phenylene Diamine (OPDA) |
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N.A. |
1329090 |
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Quinalphos |
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N.A. |
621050 |
GENERAL INFORMATION
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No. of Employees : |
2200 |
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Bankers : |
·
Bank of Govind Kunj, ·
Union Bank of ·
State Bank of ·
Bank of B & C Wing, Mittal Tower, N.
P., Mumbai – 400 021, · Corporation Bank · HDFC Bank Limited · ICICI Bank Limited · IDBI Bank Limited · Citi Bank Limited · ABN Amro Bank · Standard Chartered Bank ·
Export – Import Bank of · UTI Bank Limited |
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Facilities : |
Secured Loans 31.03.2006 31.03.200 Term Loan From Scheduled Banks 945.671
Working Capital Loan --From Scheduled Banks 1937.534 |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Parikh Joshi & Kothare Chartered Accountants, |
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Address : |
49/2341, Shri Sai Kripa Co-operative Housing Society, M.
H. B. Colony, Gandhi Nagar, Bandra (East), Mumbai – 400 051, |
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Associates : |
· Ganesh Polychem Limited · Perfect Enviro Control System Limited · Aarti Biotech Limited · Aarti Drugs Limited · Alchemie Dyechem Private Limited · Alchemie Pharma Chem Limited · Alchemie Financial Services Limited · Valiant Chemical Corporation · Alchemie Laboratories · Amulya Bio-Products · Suyash Chemicals · Ganesh Chemical Industries · Surfactant Specialities Limited · Nascent Chemical Industries Limited · Anushakti Chemicals & Drugs Limited · Gogri & Sons Investment Private Limited · Alchemie Industries · Alchemie Leasing & Financing Private Limited · Arihant Industries |
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Subsidiaries: |
· Aarti Corporate Services Limited · Alchemie (Europe) Limited 7-9, St.
Mary's Place, Bury Lanes, Bl9 ODZ, · Aarti Healthcare Limited · Avinash Drugs Limited |
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Joint Ventures: |
· Ganesh Polychem Private Limited · Perfect Enviro Control System Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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90000000 |
Equity Shares |
Rs. 5.00 each |
Rs. 450.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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72809424 |
Equity Shares |
Rs. 5.00 each |
Rs. 364.047 millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
364.047 |
364.047 |
121.349 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2004.085 |
1693.852 |
1609.051 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2368.132 |
2057.899 |
1730.400 |
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LOAN FUNDS |
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1] Secured Loans |
2883.205 |
1835.752 |
1897.927 |
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2] Unsecured Loans |
120.956 |
413.372 |
143.948 |
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TOTAL BORROWING |
3004.161 |
2249.124 |
2041.875 |
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DEFERRED TAX LIABILITIES |
260.208 |
196.995 |
167.256 |
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Equity
Share Warrants |
18.456 |
0.000 |
0.000 |
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TOTAL |
5650.957 |
4504.018 |
3939.532 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2295.350 |
1861.449 |
1735.377 |
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Capital work-in-progress |
279.752 |
186.228 |
20.172 |
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Pre-operative
Expenses |
0.000 |
0.194 |
0.448 |
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INVESTMENT |
247.421 |
243.310 |
81.325 |
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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 |
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Sundry Debtors |
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Cash & Bank Balances |
4282.512
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3357.688 |
2652.728 |
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Other Current Assets |
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Loans & Advances |
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Total
Current Assets |
4282.512
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3357.688 |
2652.728 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities and Provisions |
1469.337 |
1162.972 |
557.606 |
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Total
Current Liabilities |
1469.337 |
1162.972 |
557.606 |
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Net Current Assets |
2813.175 |
2194.716 |
2095.122 |
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MISCELLANEOUS EXPENSES |
15.259 |
18.121 |
7.088 |
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TOTAL |
5650.957 |
4504.018 |
3939.532 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover [Including other Income] |
8130.073 |
6954.646 |
5281.580 |
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Profit/(Loss) Before Tax |
716.157 |
582.268 |
500.616 |
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Provision for Taxation |
162.300 |
110.000 |
105.000 |
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Profit/(Loss) After Tax |
553.857 |
472.268 |
395.616 |
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Export Value
|
3067.590 |
2218.841 |
1351.431 |
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Import Value
|
642.661 |
388.615 |
272.076 |
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Total Expenditure |
7192.047 |
6171.760 |
4780.963 |
SUMMARISED RESULTS
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PARTICULARS |
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31.03.2007 (Full Year) |
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Sales Turnover |
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|
7580.300 |
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Other Income |
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|
61.000 |
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Total Income |
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|
7641.300 |
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Total Expenditure |
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6748.500 |
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Operating Profit |
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|
892.800 |
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Interest |
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|
288.800 |
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Gross Profit |
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|
604.000 |
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Depreciation |
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|
256.300 |
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Tax |
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|
18.600 |
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Reported PAT |
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|
262.100 |
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Dividend (%) |
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|
16.00 |
KEY RATIOS
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PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt Equity Ratio |
|
1.19 |
1.13 |
1.12 |
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Long Term Debt
Equity Ratio |
|
0.49 |
0.51 |
0.48 |
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Current Ratio |
|
1.23 |
1.36 |
1.36 |
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TURNOVER RATIOS |
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Fixed Assets |
|
2.27 |
2.30 |
1.97 |
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Inventory |
|
7.20 |
7.90 |
7.13 |
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Debtors |
|
5.09 |
5.53 |
4.64 |
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Interest Cover
Ratio |
|
4.39 |
5.11 |
5.30 |
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Operating Profit
Margin |
(%) |
14.72 |
13.63 |
15.78 |
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Profit Before
Interest and Tax Margin |
(%) |
11.88 |
10.67 |
12.38 |
|
Cash Profit
Margin |
(%) |
9.13 |
9.48 |
10.57 |
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Adjusted Net Profit
Margin |
(%) |
6.29 |
6.52 |
7.18 |
|
Return on Capital
Employed |
(%) |
19.23 |
17.98 |
18.29 |
|
Return on Net
Worth |
(%) |
22.17 |
23.36 |
22.46 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.44.55 |
|
Low |
Rs.42.50 |
LOCAL AGENCY FURTHER INFORMATION
History
Subject was promoted by Mr. Chandrakant V. Gogri and Associates. The flagship of the Alchemie group, it was the first to go public in February, 1992. At present, it manufactures Para Nitro Chloro Benzene (PNCB) and Ortho Nitro Chloro Benzene (ONCB). It’s subsidiaries are Alchemie Drugs and Aarti Corporate Services Limited. Salvigor Laboratories, a group company manufacturing Dimethyl Sulphate Sulphuric Acid and allied products, was merged with company in October, 1994.
The company commenced operations at Sarigam in 1986. During 1990, it first expanded the capacity of PNCB/ONCB (organics division) from 1200 tpa to 4500 tpa. Its maiden public issue financed manufacturing facilities for high value-added downstream products based on PNCB/ONCB. During the year 1994-95, it further expanded its organics division in four phases. It is recognized Export House, the company offers a wide range of value-added intermediate products to its international customers.
During 1998-99, the company has enhanced its installed capacity of PNCB / ONCB from 15000 tpa to 22000 tpa which further increased its capacities to 30000 tpa in the year 1999-2000.
The company has commissioned manufacturing operations at its new unit at Bharuch. In this project the Nitration plants alongwith Distillation and Crystallization sections has been commissioned. The reduction plant utilising advance technology has been commissioned in April, 2001.
The company has set up two Research and Development Centres –
one at Turbhe and the other at Vapi,
The High Court, Mumbai has approved Alchemic Organics (AOL) amalgamation with the company. The board fixed an exchange ratio of 1 equity share of the company for every 4 equity shares of AOL. Accordingly AOL was amalgamated with company during 2002. The expansion of GIDC Jhagadia for manufacturing Nitro Chlro Benzenes was nearing completion. The company is also having plans to set up Power Generation Plant at Vapi and also proposes to enter into the field of manufacturing SSP which is a widely used fertiliser. The estimated cost of the above said project was pegged to be around Rs. 250 millions.
Sarigam and Vapi units have been awarded ISO 9002 Certification during the year 2002-03.
Vapi Plant has started the commercial production of Single Super
Phosphate (SSP) in 2003.
The company has decided to amalgamate its subsidiaries Aarti Healthcare
Ltd (AHL) and Avinash Drugs Ltd with the company in December 2004. According to
the scheme of amalgamation, i) In case of AHL, One Equity share of Rs.10/- each
will be issued as fully paid up at par of the company for every Two Equity
shares of Rs.10/- each fully paid up held in AHL ii) In case of Avinash Drugs
Ltd, One Equity share of Rs.10/- each will be issued as fully paid up at par of
the company for every Fifteen Equity shares of Rs.100/- each fully paid up held
in Avinash Drugs. Further,no equity shares will be issued for equity shares
held by Aarti Industries in AHL and Avinash Drugs as the same will be
cancelled.
DIVIDEND
The Company had declared and paid 1st interim dividend of Rs. 1.70 ps. @17% per
share (of Rs. 10/- each) and 2nd interim dividend of Rs.0.70 ps.
@14% per share (of Rs. 5/- each). The directors are pleased to recommend a
final dividend of 40 ps. @8% per share (of Rs. 5/- each) for the year ended
31.03.2006. Total amount of Dividend pay out for the financial year 2005-06,
subject to declaration of final dividend at the forthcoming Annual General
Meeting, would be Rs. 142 millions as compared to Rs. 122.600 millions for the
previous year.
OPERATIONS
During the year under report, the company has achieved Sales turnover of Rs.
7861.800 millions (Previous year: Rs. 6854.700 millions) registering a growth
of 14.69%. Operating profit before Interest, Depreciation and Tax was Rs.
1094.200 millions (Previous year: Rs. 892.400 millions) registering a growth of
22.61%.
Profit before tax was Rs. 716.200 millions (Previous year Rs. 582.200 millions)
registering a growth of 23%. Profit after tax was Rs. 490.600 millions
(Previous year: Rs. 442.500 millions) registering a growth of 10.87%. The
Company has started Block-I of its Tarapur USFDA Compliant facilities and has
started exporting validation batches in the regulated market.
In addition to the Single Super Phosphate (SSP) fertilizer manufactured from a
by product, the Company also has setup Di-calcium Phosphate a veterinary item
from Dilute Sulphuric acid.
EXPORTS
Exports increased from Rs. 2550.400 millions to Rs. 3416.100 millions
(Inclusive of Export through export trading houses and relevant export
benefits) registering a growth of 33.94%. The constant efforts are being made
to increase the exports.
The company has been awarded star exporter Award for the year 2004-05 by 'The
Gujarat Dyestuffs Manufacturers' Association' for earning highest foreign
Exchange from Direct Export of self Manufactured Dyes & Dyes
Intermediates.
The company’s fixed assets of important value include leasehold land, building, plant & machinery, furniture, fixtures & office equipment and vehicles.
WEBSITE DETAILS
The first unit of Aarti group, Alchemie Laboratories, commenced commercial production of Dimethyl Sulphate (DMS) in the year 1975. Today, Aarti has acquired world-class expertise in the development and
manufacturing of basic bulk chemicals, dyes & pigment intermediates, pharmaceuticals
& agrochemicals along with their intermediates, rubber chemicals,
surfactant intermediates and specialty chemicals. Aarti is amongst the largest producers of Benzene based basic
and intermediate chemicals in
Aarti has attained a
total turnover of US $ 189 million in the year April 2003 - March 2004 with
flagship companies Aarti Industries
Limited (AIL) & Aarti Drugs Limited (ADL) listed on Stock Exchanges.
Aarti has a subsidiary Aarti Healthcare Limited (AHCL), which is engaged in manufacturing of Active
pharma ingredients ranging from Ace Inhibitors, Broncodialators to Steroids.
Subject has manufacturing sites
at
Recognizing the
importance of research, AARTI
has established three full-fledged DSIR
(Dept. of Scientific & Industrial Research)-Government of India recognized
R & D centers, which carry innovative product and process
development work.
Subject has the privilege of
catering to the requirements of leading manufacturers of dyes, pigments,
pharmaceuticals, agrochemicals and rubber chemicals in countries such as
API Division of subject, Flagship Company of USD 189
Million “Aarti Group”, since
1976, exporting to more than 65 countries, including Developed and developing
Markets.
API Division
manufacturing APIs, in niche segments Viz: Anti – Hypertensive, Anti
–Asthamatic, Anti-Cancer, Anti- Inflammatory / Anti- Allergic, Anti- Diabetic,
Anti- Depressants, Anti- Thalassaemic.
Manufacturing Units
at Dombivali & Tarapur, in
Brand New facility
upcoming at Tarapur & Vapi, per US-FDA Standard.
In house R & D Center, with Ultra modern, sophisticate Instruments, equipped with Team of Highly skilled scientists, working round the clock on New Products and Process Improvements.
Expected to receive
CoS for Ramipril, Budesonide, Venlafaxine, in year 2004, for marketing products
in
E-DMFs in CTD
Formats available for most of the commercialized molecules.
All products match
specifications of BP / USP / EP, as applicable.
Esteemed clients in
Domestic Market, serviced by us are, Ranbaxy, Sun Pharma, Cipla, Aristo, Astra-
Zeneca Pharma
Per individual
client’s need, can also provide “Tailor Made Products” for physical parameters
viz: Particle size (micronised material), Bulk Density etc., as well Impurity
profile, Methods for Testing etc.
They also offer
Intermediates of most of their APIs
Products under
Patent will NOT be sold until Patent expiration in Buyer’s Country. Purchase of
Patented Product will be sole responsibility of the Buyer.
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 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. 40.40 |
|
|
1 |
Rs. 82.93 |
|
Euro |
1 |
Rs. 55.81 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--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 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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|