MIRA
INFORM REPORT
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Report Date : |
04.06.2007 |
IDENTIFICATION DETAILS
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Name : |
INDSIL ELECTROSMELTS LIMITED |
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Registered Office : |
Indsil House, Door No.103-107, |
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Country : |
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Financials (as on) : |
30.06.2006 |
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Date of Incorporation : |
30.08.1990 |
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Com. Reg. No.: |
2849 |
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CIN No.: [Company
Identification No.] |
L27101TZ1990PLC002849 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBI03124C |
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Legal Form : |
Public Limited Liability Company. Company’s shares are listed on Stock
Exchanges. |
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Line of Business : |
Manufacturers of Ferro Alloys. |
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 1000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. 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/ Administrative Office : |
Indsil House, Door No.103-107, |
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Tel. No.: |
91-422-2210925 |
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Mobile No.: |
91-422-2210925 |
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E-Mail : |
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Corporate Office : |
49, |
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Tel. No.: |
91-422-2210922/ 2210923/ 3/ 4 |
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Fax No.: |
91-422-2210925 |
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E-Mail : |
indsilho@indsil.com, indsil.cbe@smj.sprintrpg.ems.vsnl.net.in |
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Factory 1 : |
Smelter Unit VI-679, Pallatheri, Elapully, Palakkad 678007, Kerala |
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Factory 2 : |
Rajakkad Hydro Electric
Power Plant VIII/351, Rajakkad, Idukki District-685566, Kerala |
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Factory 3 : |
6/679, Palathai, City-Palakkad, State Kerala-678007, |
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Tel. No.: |
91-491-2583501/ 2583502/ 2583503 |
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Fax No.: |
91-491-2583267 |
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Branches : |
Located at : v
Palakkad v
v
Rajakkad |
DIRECTORS
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Name : |
Mr. S N Varadarajan |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Vinod Narsiman |
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Designation : |
Executive Director |
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Name : |
Mr. S Inderchand |
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Designation : |
Director |
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Name : |
Mrs. D Pushpa Varadarajan |
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Designation : |
Director |
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Name : |
Dr. S Rama Iyer |
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Designation : |
Director |
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Name : |
Mr. B Balchand |
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Designation : |
Director |
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Name : |
Mr. K S Mahadevan |
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Designation : |
Director |
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Name : |
Mr. M K Ravindranathan, IAS (Retired) |
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Designation : |
Nominee of IDBI |
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Name : |
Dr. A K Sreddharan |
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Designation : |
Director |
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Name : |
Mrs. P S Prema |
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Designation : |
Director |
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Name : |
Mrs. S Usha |
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Designation : |
Nominee of IDBI |
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Name : |
Mr. Saji V Mathew |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. S Mahadevan |
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Designation : |
Company Secretary |
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Tel. No.: |
91-422-2217461 |
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E-Mail : |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Ferro Alloys. |
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Products : |
v
Power v
Ferro Silicon
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PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Silico Manganese |
MT |
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12000 |
10050.650 (Incl. 114.859 MT for captive consumption and 1650 MT handling loss) |
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Power |
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21 MW |
52048174 KWH |
GENERAL INFORMATION
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Bankers : |
v
State Bank of v
State Bank of Travancore v
The Federal Bank Limited v
Industrial Development Bank of v
UTI Bank Limited v
South Indian Bank Limited |
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Facilities : |
Secured Loans : (Rs. In millions)
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
K S G Subramanyam & Company Chartered Accountants |
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Address : |
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Associates : |
Sun Metals & Alloys Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 millions |
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500000 |
Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.50.000 millions |
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Total |
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Rs.250.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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9449075 |
Equity Shares |
Rs.10/- each |
Rs.94.491
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
94.491 |
94.491 |
94.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
169.165 |
144.143 |
64.500 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
263.656 |
238.634 |
159.000 |
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LOAN FUNDS |
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1] Secured Loans |
290.805 |
303.411 |
356.100 |
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2] Unsecured Loans |
0.000 |
56.551 |
125.900 |
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TOTAL BORROWING |
290.805 |
359.962 |
482.000 |
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PROVISION OF DEFERRED TAX LIABILITY |
110.949 |
110.949 |
0.000 |
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DEFERRED TAX LIABILITIES (NET) |
10.378 |
12.933 |
0.000 |
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TOTAL |
675.788 |
722.478 |
641.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
570.031 |
572.688 |
571.500 |
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Capital work-in-progress |
0.000 |
0.000 |
0.200 |
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INVESTMENT |
1.755 |
1.755 |
1.700 |
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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 |
138.081 |
175.878 |
66.000 |
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Sundry Debtors |
42.954 |
38.290 |
52.200 |
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Cash & Bank Balances |
15.234 |
17.530 |
9.000 |
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Other Current Assets |
0.000 |
0.000 |
0.000 |
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Loans & Advances |
23.626 |
21.554 |
16.400 |
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Total
Current Assets |
219.895
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253.252 |
143.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
115.893 |
105.217 |
72.500 |
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Provisions |
0.000 |
0.000 |
3.500 |
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Total
Current Liabilities |
115.893
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105.217 |
76.000 |
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Net Current Assets |
104.002
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148.035 |
67.600 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
675.788 |
722.478 |
641.000 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
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Sales Turnover |
526.925 |
672.606 |
589.800 |
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Other Income |
(194.841) |
(72.440) |
10.500 |
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Total Income |
332.084 |
600.166 |
600.300 |
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Profit/(Loss) Before Tax |
35.988 |
100.192 |
33.700 |
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Provision for Taxation |
0.191 |
12.465 |
(4.200) |
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Profit/(Loss) After Tax |
35.797 |
87.727 |
37.900 |
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Imports : |
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Raw Materials |
18.471 |
72.239 |
NA |
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Total Imports |
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Expenditures : |
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Cost of Goods Sold |
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Manufacturing Expenses |
36.675 |
152.750 |
9.500 |
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Administrative Expenses |
27.502 |
32.273 |
29.900 |
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Raw Material Consumed |
140.807 |
218.490 |
176.700 |
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Miscellaneous Expenses |
NA |
NA |
0.800 |
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Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
24.000 |
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Financial Charges |
38.271 |
47.512 |
56.700 |
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Power & Fuel |
NA |
NA |
167.500 |
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Depreciation & Amortization |
34.576 |
34.311 |
34.000 |
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Other Expenditure |
18.265 |
14.637 |
67.500 |
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Total Expenditure |
296.096 |
499.973 |
566.600 |
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QUARTERLY RESULTS
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PARTICULARS |
30.09.2006 (1st
Qtr.) |
31.03.2006 (2nd
Qtr.) |
31.03.2007 (3rd
Qtr.) |
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Sales Turnover |
149.600 |
204.700 |
96.800 |
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Other Income |
0.200 |
1.700 |
00.700 |
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Total Income |
149.800 |
206.400 |
97.500 |
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Total Expenditure |
125.400 |
159.600 |
79.000 |
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Operating Profit |
24.400 |
46.800 |
18.500 |
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Interest |
10.500 |
8.100 |
7.300 |
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Gross Profit |
13.900 |
38.700 |
11.200 |
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Depreciation |
8.700 |
8.600 |
8.700 |
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Tax |
0.000 |
0.100 |
0.100 |
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Reported PAT |
5.100 |
30.000 |
2.400 |
200609 Quarter 1
Notes:
EPS is Basic and Diluted 1.The above statement was reviewed by the Audit
Committee and taken on record by the Board of Directors at their meeting held
on 25-10-2006 2.The Deferred tax assets/Liability as per AS 22 is being
determined for the financial year as per Income Tax Act. 3.Previous
year/corresponding period figures have been regrouped /reclassified wherever
necessary. 4.The number of Investor letter received during the quarter,
resloved and pending are: Total Number of Letters received-0, Total Number of
Letters disposed off-0, Total Number of Letters pending -0.
200612 Quarter 2
Notes:
1. The hydro eletric power division (21 MW) generated a total of 179
lakh units during the quarter under review as compared to 194 lakh during the
same period last year. 2.The above unaudited financial results (Provisional)
were taken on record by the Board of Directors at their meeting held on
29-01-07.
200703 Quarter 3
Notes:
1. The above statement was reviewed by the Audit Committee and taken on record
by the Board of Directors at their meeting held on 23.04.2007. 2. The Deferred
Tax asset/Liability as per AS 22 is being determined for the financial Year as
per Income Tax Act. 3. Previous Year / corresponding period figures have been
regrouped / reclassified wherever necessary. 4. The Number of Investors letters
received during the quatrter resolved and pending are Total Number of Letters
received - 3 Total Number of Letters disposed off-3 Total Number of letters
Pending - 0
KEY
RATIOS
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PARTICULARS |
30.06.2006 |
30.06.2005 |
30.06.2004 |
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Debt-Equity Ratio |
1.74 |
2.40 |
3.39 |
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Long Term Debt-Equity Ratio |
1.67 |
2.40 |
3.39 |
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Current Ratio |
1.69 |
2.04 |
1.28 |
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TURNOVER RATIOS |
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Fixed Assets |
0.52 |
0.83 |
0.78 |
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Inventory |
2.54 |
5.23 |
11.98 |
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Debtors |
9.81 |
13.97 |
11.94 |
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Interest Cover Ratio |
1.93 |
3.09 |
1.59 |
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Operating Profit Margin(%) |
27.38 |
28.84 |
21.09 |
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Profit Before Interest And Tax Margin(%) |
18.71 |
23.41 |
15.33 |
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Cash Profit Margin(%) |
17.65 |
19.30 |
12.19 |
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Adjusted Net Profit Margin(%) |
8.98 |
13.87 |
6.43 |
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Return On Capital Employed(%) |
10.85 |
21.57 |
14.37 |
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Return On Net Worth(%) |
14.25 |
41.85 |
25.02 |
STOCK PRICES
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Face Value |
Rs.10.00/- |
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High |
Rs.32.35 |
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Low |
Rs.31.10 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS:
The year 2005-06 witnessed a major glut in the ferro alloy markets
worldwide. This led to a severe squeeze in operating margins. Consequently, extended
periods of shut down were taken at the company's smelter division and this led
to poor operating performance from this division.
Adding to the problem was the fact that manganese ore prices remained
high through the year and for most part of the year, there was very little
parity between the price of finished alloy and the key input, manganese ore.
However, the hydro electric power plant witnessed two very good monsoon
seasons and this led to an average PLF of around 33%. The HPP has seen the best
year since inception.
The performance of the hydel division largely made up for the losses in
the smelter division and overall, the company managed to record a PBDIT of
Rs.108.800 millions and PBT of Rs.35.988 millions. In the above, the hydel
division recorded a PBDIT of Rs. 174.600 millions (net) and the smelter
division recorded a PBDIT of (-) Rs.65.800 millions.
The hydro electric power division generated a total of 52.000 millions
units during the monsoon year 2005-06.
FUTURE PROSPECTS:
Low carbon Silico Manganese prices have started looking up towards the
end of the year. The stainless steel industry, after a brief lull, has started
picking up steam and is expected to drive demand for the company's products in
a strong manner.
The coming year should witness stable operating profits on the smelter
side and the hydro electric division subject to normal monsoon conditions,
should witness an average PLF of about 25%.
The company has recently acquired rights to set up hydro electric power
projects totaling to 20 MW capacity in the State of
FINANCE:
Long term debt levels have come down from Rs.303.400 millions to
Rs.256.100 millions during the year. The average interest cost on long term
debts is now at 10%
SHIFTING OF
REGISTERED OFFICE
The Registered Office of the Company was shifted from
INDUSTRY STRUCTURE
AND DEVELOPMENTS:
The ferro alloy industry, which the company belongs to, is an integrated
player in the steel and stainless steel industry. The company's products are
consumed mostly by the stainless steel industry and a part of its production is
consumed by the steel industry as well.
After a global boom across all varieties of ferro alloys in the year
2004-05, there was a major correction in the year 2005-06.
The prices slid from all time high levels by almost 60% and the industry
went through very challenging times during this year in terms of viable and
sustainable operations.
The boom in the ferro alloy prices was accompanied by a massive increase
in the price of major inputs like manganese ore.
After the correction, manganese ore prices did not correct proportionately
and this led to severe losses in terms of operations across the ferro alloy
industry in India and worldwide.
Facilities with access to captive power managed to ride the down cycle
and from the beginning of 2006, the situation has more or less stabilized.
There has been a major shake out in the industry worldwide and unviable plants
(including new ones) have been shut down and major consolidation efforts are
happening worldwide in the ferro alloy industry. In
OPPORTUNITIES
& THREATS :
The company continues to witness opportunities in the Low carbon silico
manganese arena. The stainless steel industry, after a brief, one year lull, is
expected to pick up steam once again and this will result in higher demand for
Low carbon Silico manganese. The Government of India reduced duty levels to
extremely low levels across the steel industry. Ferro alloy industry in
The company has recently acquired rights to build around 20 MW worth
hydro electric generating capacities in the State and is planning to bid for
rights for another 8 to 10 MW which would take the total generating capacity
along with the existing capacity to around 50 MW. The time line given for
commercial generation for the expanded capacity is 2009.
In the event the company successfully executes its plans, by 2009-10,
the operating profits from the hydro electric power division is expected to
cross Rs.750 millions per annum.
In terms of threats, competition from countries like
Poor monsoon performance remains a major threat to the viability of the
company's operation and it is a factor that, the company has no control of.
In terms of increasing competitiveness in its ferro alloy smelter, the
company continues to enhance productivity levels year on year and with a
suitable range of product mix, profitability margins have been seeing
continuous improvement over the last few years.
SEGMENTWISE
PERFORMANCE:
Smelter division
Already covered under Industry structure and developments.
Power division
As always, the risk of monsoons remain an issue as far as the hydel
division is concerned. Though the year 2005-06 has seen normal monsoons and
early part of 2006-07 is witnessing good monsoons, one could have to keep
monsoon behaviour in mind as a legitimate concern as far as the financial
performance of the hydel division goes.
RISKS AND
CONCERNS:
The major risk that the Company is always exposed to is the monsoon
weather pattern which is the sole influencing factor behind the captive hydel
station's operations.
The utilisation of the hydel station and consequently the availability
of own power for smelter operations is a crucial driver of financial
performance. Therefore, there is always a concern in terms of expectations of
normal monsoon weather patterns.
Company’s fixed assets include Land, Building, Plant and Machinery,
Electrical Installation, Pollution Control Equipments, Water Treatment Plant,
Workshop Equipments, Laboratory Equipments, Fire Fighting Equipments, Air
Conditioner, Air Cooler, Electrical Fittings, Office Equipments, Generator,
Weighing Scale, Computer, Vehicles, Tractor and Trailor, Furniture and fixture
and Transmission Lines.
Incorporated on 31 Aug.1990, Subject was promoted by S N
Vardarajan, who has interests in two other companies -- Coimbatore Steels and
Sun Metals and Alloys.
Subject came out with a public issue aggregating Rs 28.500 millions in Jul.'93
to set up a Rs 120 millions unit to manufacture 7800 tpa of ferro silicon, its
major product. In addition to ferro silicon, subject also manufactures
aluminium ferro silicon. It has signed MOUs with state electricity boards for
establishing 71-MW hydel power projects for captive consumption to ensure full
power supply. The Kerala government has exempted the subject’s unit from power
cuts and electricity duty for 5 years from the date of commercial
production.
The expansion of capacity by the addition of a 10/15 MVA furnace was completed
by Mar.1997.
During 1996-97, the civil work of the 21 MW power project at Kuthugal were
started and was completed by June'99. World Bank through Indian Renewable
Energy Development Agency Limited (IREDA) has sanctioned Rs. 350.000 millions
as term loan towards part funding of this project.
During 1998-99, the company was awarded "KSIDC'S AWARDS FOR
EXCELLENCE-99" in recognition for its outstanding performance in terms of
employment generation, good labour relations, contribution to economy and
profitability. The first phase of the company's project Hydro Electric Power
Plant at Kuthungal, Kerala involving one generator having a capacity of 7 MW
was commissioned in May'2000.
The company had successfully commissioned the 21 MW Kuthungal Hydro Electro
Power Project during the year 2000-2001 which is the largest private hydel
scheme in Kerala. This project had been completed within a period of 28 months.
Hydro Electric Power Project was commissioned in May 2000 and the full
commercial operation was in August 2000.
Website
Details :
Their
Add Economic value by creating
an organisation capable of meeting every customer requirement in terms of
quality, reliability and competitiveness. Maintain focus on economic value
addition through continuous improvement of quality of products, process and services.
Subject, with business interests in speciality alloys and power generation is a
fast growing GROUP with well integrated manufacturing plants and a well
diversified geographical base. The Group's revenues are currently around
Rs.2500 million / annum.
Group Asset Profile
|
UNIT |
ASSETS |
PRODUCTS |
REVENUES |
|
INDSIL ELECTROSMELTS LIMITED., |
* Ferro alloy smelter |
* Low carbon Silico Manganese (14,000 tpy) |
Rs 1140 million |
|
INDSIL ELECTROSMELTS |
* 21 MW hydro electric power plant |
* Power |
Rs 180 million |
|
INDSIL ENERGY AND ELECTROCHEMICALS LIMITED., |
* Ferro alloy smelter |
* Low carbon Silico Manganese (12000 tpy) |
Rs 750 million |
|
INDSIL ENERGY AND ELECTROCHEMICALS LIMITED., |
* 12 MW coal fired thermal power plant |
* Power |
Rs 280 million |
Products
Low Carbon Silico Manganese:
Type : Ferro Alloy
Specification:
|
|
Product A |
Product B |
|
Manganese |
55% Min |
55% Min |
|
Silicon |
27% Min |
23% Min |
|
Carbon |
0.1% Max |
0.5 %Max |
|
Phosphorus |
0.15% Max |
0.30 %Max |
Uses: Predominantly used in the
production of Stainless Steel
High
Carbon Silico Manganese:
Type : Ferro Alloy
Specification:
|
Manganese |
60% Min |
|
Silicon |
15% Min |
|
Carbon |
2.0 % Max |
|
Phosphorus |
0.30% Max |
Uses: Used in the production of steel
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.40.54 |
|
|
1 |
Rs.80.21 |
|
Euro |
1 |
Rs.54.51 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--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 |
|
54 |
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 |
|