MIRA INFORM
REPORT
|
Report
Date : |
27.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
CAPRIHANS INDIA LIMITED |
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Registered
Office : |
Block-D, Shivsagar Estate, |
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Country
: |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
11.04.1946 |
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Com.
Reg. No.: |
11-4877 |
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CIN
No.: [Company
Identification No.] |
L29150MH1946PLC004877 |
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TAN
No.: (Tax
Deduction & Collection Account No.) |
MUMC00097G |
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Legal
Form : |
A Public Limited Liability company. The company’s shares
are listed on the Stock Exchanges |
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Line
of Business : |
Manufacturing and marketing of rigid & flexible PVC
sheets, plastic extruded sheets, polythene sheets & films, phenolic &
melamine laminates, paper of all sorts including AB kraft & base paper
for coating and hollow plastic corrugated boxes. |
RATING & COMMENTS
|
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
3400000 |
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Status
: |
Satisfactory |
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Payment
Behaviour : |
Slow but
Correct |
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Litigation
: |
Clear |
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Comments
: |
Subject is an old and well-established company and now a
subsidiary of INEOS Vinyls Holdings Limited. It is engaged in manufacturing
and marketing of Rigid and Flexible Film by Calendaring Process and Plastic
extruded products. Improvements in formulations. Trade relations are reported
as fair. Payments are reported as slow, but correct. The company can be considered normal for business dealings
at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
Block-D,
Shivsagar Estate, |
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Tel.
No.: |
91-22-24921900
– 05/ 40001800, 40001818 |
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Fax
No.: |
91-22-24939284
/ 29450594 / 29460693 |
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E-Mail
: |
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Website
: |
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Area : |
5640
Sq.ft. |
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Factory
1 : |
Located
at :-
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Regional
Sales Offices : |
Located at : v
v
v
Tamilnadu v
Karnataka v
Andhra Pradesh v
Kerala v
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DIRECTORS
|
Name : |
Mr. M. P. Munot |
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Designation
: |
Chairman |
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Date
of Birth/Age : |
04.10.1944 |
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Qualification
: |
Higher Secondary |
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Experience
: |
Mr. Munot, Chairman of the Company became a Director in 1
986 and was Managing Director from 1992 to 1997. An eminent industrialist
with 40 years of business experience, he is the guiding force behind the Kalpataru
Group of companies engaged in real estate and construction activities, |
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Date
of Appointment : |
28.05.1986 |
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Other
Directorships : |
v Kalpataru Homes Limited v Sharyans Resources Limited v Rajratan Global Wire Limited v Kalpataru Power Transmission Limited v Associated Luggage Co. Limited |
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Committee positions held in other companies : |
Audit Committee Kalpataru Power Transmission Limited —- Member Remuneration Committee Sharyans Resources Limited — Chairman Rajratan Global Wire Limited — Member Shareholders/Investor Grievance Committee Sharyans Resources Limited — Member |
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Name : |
Mr. S. A. Gandhi |
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Designation
: |
Director |
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Date
of Birth/Age : |
25.09.1950 |
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Qualification
: |
Chartered Accountant |
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Experience
: |
Mr. Gandhi became a Director in 1983 and was Managing/Jt. Managing
Director from 1984-1997. Mr. Gandhi has vast experience and knowledge in the
field of plastics. He is an active member of various committees related to
plastic industry. He is also involved in construction activity, export and
trading. |
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Date
of Appointment : |
01.08.1983 |
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Name : |
Mr. D. Thomason |
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Designation
: |
Director |
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Date
of Birth/Age : |
24.09.1958 |
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Qualification
: |
MA 1st Class Chemistry, MBA, Diploma in
Marketing, C Chem, MRSC and MCIM |
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Date
of Appointment : |
19.11.2001 |
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Name : |
Mr. N. L. Dalmia |
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Designation
: |
Vice Chairman |
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Name : |
Mr. R. Balasubramanian |
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Designation
: |
Managing Director |
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Qualification
: |
B.Com, A.I.C., A.C.A., A.C.S. |
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Name : |
Mr. G. Mancuso |
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Designation
: |
Alternate Director to Mr. D K Wadia (Date of Joining
19-11-2001) |
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Name : |
Mr. R. K. Kulkarni |
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Designation
: |
Director |
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Name : |
Mr. S. B. Zaveri |
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Designation
: |
Director |
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Name : |
Mr. D. N. Mungale |
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Designation
: |
Additional Director |
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Date
of Birth/Age : |
01.06.1953 |
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Qualification
: |
B.Com., L.L.B., ACA |
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Experience
: |
Mr. Mungale is a Chartered Accountant having an experience
of 30 years in financial services and investment banking. |
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Date
of Appointment : |
02.08.2002 |
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Other
Directorships : |
v Chowgule Steamships Limited v Camlin Limited v Indoco Remedies Limited v Indo Count Industries Limited, v L I C Housing Finance Limited v Mahindra & Mahindra v Financial Services Limited v Sicai Logistics Limited v Tamilnadu Petroproducts Limited |
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Audit Committee Indoco Remedies Limited — Chairman Camlin Limited — Chairman Sical Logistics Limited — Chairman Chowgule Steamships Limited — Chairman L I C Housing Finance Limited — Member Indo Count Industries Limited — Member Mahindra & Mahindra Financial Services Limited — Member Tamilnadu Petroproducts Limited — Member Remuneration Committee Chowgule Steamships Limited — Member |
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Name : |
Mr. S K Dalmia |
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Designation
: |
Director |
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Date
of Birth/Age : |
19.10.1943 |
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Qualification
: |
B.Com. |
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Experience
: |
Mr. Dalmia was a Director of the Company from 1992 to
1997. Mr. Dalmia is an industrialist involved in business like containers. garments,
real estate and construction. |
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Date
of Appointment : |
30.06.2006 |
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Other
Directorships : |
v Trans Freight Containers Limited v Morteo Transfreight Reefer v Containers Limited |
KEY EXECUTIVES
|
Name : |
Mr. K. R.
Viswanathan |
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Designation
: |
Company
Secretary |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
Promoters’ holdings
|
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|
|
Foreign
Promoters |
6698325 |
51.00 |
|
Indian
Promoters |
2752583 |
20.96 |
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|
|
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Financial
Institutions and Banks |
508425 |
3.87 |
|
FII’s and
OCB’s |
450 |
0.00 |
|
Mutual
Fund/s |
5416 |
0.04 |
|
Non
Residential Indians |
7876 |
0.06 |
|
Domestic
Companies |
1003921 |
7.64 |
|
Individuals
|
2156975 |
16.43 |
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Total |
13133971 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing and marketing of rigid & flexible PVC
sheets, plastic extruded sheets, polythene sheets & films, phenolic &
melamine laminates, paper of all sorts including AB kraft & base paper
for coating and hollow plastic corrugated boxes. |
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Products
: |
Its
products range includes:- ·
Sunflex ·
Sundekor ·
Sunblis ·
Sundene ·
Sunvic (Rigid Sheeting) ·
Sunlac, Sunstrene, Sunthene and Sunlene ·
Sunpac ·
Sun Board ·
PVC Film for stationery ·
Rainwear ·
Table Covers ·
Shower Curtains ·
Inflatable Toys ·
Baby Wear ·
Footwear ·
Luggage ·
Automobiles ·
Insulation Tapes ·
Printed and Embossed Film ·
Non-toxic, Plain and Printed Films with Nursery Designs ·
PVC Sheeting ·
Transparent Clear and Tinted Film ·
Special Grades of PVC Tape Film ·
Extra-soft Sheeting ·
Laminated PVC Film ·
Laminated, Non-toxic PVC Film ·
Pharmaceutical Packaging Films ·
Other Packaging Films ·
Specialties Films |
PRODUCTION STATUS
|
Particulars |
|
Licensed Capacity (M.T. per annum) |
Installed Capacity
(Kgs. per annum) |
Actual Production (Kgs. per annum) |
|
Rigid
& Flexible PVC Sheet |
|
18420 |
21060 |
14342 |
|
Plastic
Extruded Sheets |
|
300 |
300 |
420 |
|
Polythene
Sheets & Films |
|
120 |
120 |
362 |
|
Hollow
Plastic Corrugated Boards |
|
1050 |
1050 |
633 |
GENERAL INFORMATION
|
No. of
Employees : |
392 |
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|
|
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Bankers
: |
v
Bank of v
State Bank of v
HDFC Bank Limited |
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Facilities : |
-- |
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Banking Relations : |
Satisfactory
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Auditors
: |
M. P.
Chitale & Company Chartered Accountants |
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Associates/Subsidiaries
: |
Ineos Vinyls Holding Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
2,00,00,000 |
Equity
Shares |
Rs.10/- each |
Rs. 200.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
1,31,33,971 |
Equity
Shares |
Rs.10/- each |
Rs. 131.340 millions |
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 15 months |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
131.340 |
131.340 |
131.340 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
719.335 |
679.463 |
669.047 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
(78.843) |
|
NETWORTH
|
850.675 |
810.803 |
721.544 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2]
Unsecured Loans |
10.800 |
0.000 |
0.000 |
|
TOTAL
BORROWING
|
10.800 |
0.000 |
0.000 |
|
|
DEFERRED
TAX LIABILITIES |
0.000 |
0.000 |
69.565 |
|
|
|
|
|
|
|
TOTAL
|
861.475 |
810.803 |
791.109 |
|
|
|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
200.508 |
202.160 |
173.680 |
|
Capital work-in-progress
|
11.453 |
4.427 |
41.965 |
|
|
|
|
|
|
|
INVESTMENT
|
0.000 |
0.000 |
0.000 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
236.388
|
211.429
|
205.461 |
|
|
Sundry Debtors
|
362.464
|
385.484
|
348.835 |
|
|
Cash & Bank Balances
|
244.802
|
142.534
|
173.807 |
|
|
Loans & Advances
|
37.176
|
43.190
|
60.897 |
Total Current Assets
|
880.830
|
782.637
|
789.000 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
204.106
|
160.268
|
200.145 |
|
|
Provisions
|
27.210
|
18.783
|
15.941 |
Total Current Liabilities
|
231.316
|
179.051
|
216.086 |
|
Net
Current Assets
|
649.514
|
603.586
|
572.914 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.630 |
2.550 |
|
|
|
|
|
|
|
TOTAL
|
861.475 |
810.803 |
791.109 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 15 months |
|
|
Sales Turnover |
1194.101 |
|
1517.529 |
|
|
Other Income |
51.626 |
31.466 |
|
|
|
Total
Income |
1245.727 |
1244.965 |
1517.529 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
70.848 |
93.269 |
50.709 |
|
|
Provision for Taxation |
24.800 |
2.810 |
0.260 |
|
|
Profit/(Loss) After Tax |
46.048 |
90.459 |
50.449 |
|
|
|
|
|
|
|
|
Total
Earnings |
150.439 |
153.496 |
124.500 |
|
|
|
|
|
|
|
|
Imports
: |
|
|
|
|
|
|
Raw Materials |
210.696 |
125.539 |
|
|
|
Stores & Spares |
0.223 |
0.825 |
113.200 |
|
|
Capital Goods |
1.885 |
0.000 |
|
|
Total
Imports |
212.804 |
126.364 |
113.200 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
819.398 |
|
|
|
|
Interest |
0.036 |
0.087 |
1466.820 |
|
|
Depreciation & Amortization |
27.814 |
31.469 |
|
|
|
Other Expenditure |
327.001 |
313.075 |
|
|
Total
Expenditure |
1174.249 |
1187.851 |
1466.820 |
|
SUMMARISED
RESULTS
|
PARTICULARS |
|
|
31.03.2007 (Full year) |
|
Sales Turnover |
|
|
1248.400 |
|
Other Income |
|
|
60.100 |
|
Total Income |
|
|
1308.500 |
|
Total Expenditure |
|
|
1176.700 |
|
Operating Profit |
|
|
131.800 |
|
Interest |
|
|
0.000 |
|
Gross Profit |
|
|
131.800 |
|
Depreciation |
|
|
29.000 |
|
Tax |
|
|
32.600 |
|
Reported PAT |
|
|
67.500 |
|
Dividend (%) |
|
|
100.000 |
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 15 months |
|
Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
3.81 |
3.38 |
2.65 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
2.38 |
2.56 |
2.25 |
|
Inventory |
6.13 |
6.66 |
5.50 |
|
Debtors |
3.67 |
3.78 |
3.47 |
|
Interest Cover Ratio |
0.00 |
579.00 |
170.33 |
|
Operating Profit Margin(%) |
7.19 |
6.44 |
6.62 |
|
Profit Before Interest And Tax
Margin(%) |
5.16 |
4.17 |
3.43 |
|
Cash Profit Margin(%) |
6.11 |
6.31 |
6.58 |
|
Adjusted Net Profit Margin(%) |
4.08 |
4.04 |
3.39 |
|
Return On Capital Employed(%) |
8.69 |
7.35 |
5.24 |
|
Return On Net Worth(%) |
6.87 |
7.11 |
5.16 |
LOCAL AGENCY FURTHER INFORMATION
History:
Incorporated in Apr.'46, Caprihans
Subject is a well-established diversified company manufacturing PVC films and
sheetings, leather cloth, decorative and industrial laminates, paper and
extrusion products. PVC products are the company's mainstay. These find application
in a wide range of products -- air balloons, raincoats, panels, capsule
blisters, furniture upholstery, tank fabrication lining, etc. In the blister
films segment, the company has a dominant share.
The company has an ongoing technical collaboration with Renolt Werke and
Dekorplatenwerk, both of
The company embarked on an expansion-cum-modernisation programme in early 1993,
funded by a rights issue, to increase its capacity from 6840 tpa to 15,240 tpa.
It also manufactures, in technical collaboration with Danny Hudson, Taiwan,
international-quality polypropylene sheets for stationery applications. The
company has entered into a technical & financial collaboration with M/s
Vereinigte Kunststoffwerke Gmbh (VKW).
In 1999, the company received the Golden Status Certificate from the Ministry
of Commerce,
During 2003-04, the Company decided to set up in-house facility for PVDC
Coating on PVC Film at
BUSINESS
The company is engaged in manufacturing and marketing of
rigid & flexible PVC sheets, plastic extruded sheets, polythene sheets
& films, phenolic & melamine laminates, paper of all sorts including AB
kraft & base paper for coating and hollow plastic corrugated boxes.
The company is a well-established diversified company
manufacturing PVC films and sheetings, leather cloth, decorative and industrial
laminates, paper and extrusion products. PVC products are the company’s
mainstay. These find application in a wide range of products – air balloons,
raincoats, panels, capsule blisters, furniture upholstery, tank fabrication
lining, etc. In the blister films segment, the company had a dominant share.
The company is
Fixed assets
v
v
v Buildings
v Plant & Machinery
v Furniture, Fixtures
v Office Equipments
v Vehicle
v Computer Software
PERFORMANCE:
The Company's turnover for the year amounted to Rs. 1371.800
millions as compared to Rs. 1388.900 millions in the previous year. The Company
earned a profit (before extraordinary items and tax) of Rs. 71.500 millions as
compared to Rs. 57.100 millions in the previous year.
INDUSTRY AND OUTLOOK
The Company is engaged mainly in the processing of plastic
polymers and manufactures Rigid and Flexible PVC films by Calendering process
and certain plastic products through extrusion process. Rigid PVC film is
largely used for packaging in the Pharmaceutical, Food and FMCG industries.
Flexible PVC film and plastic extruded products are used for a variety of
industrial and consumer applications.
The growth in the market size for the company's products
varies for different applications and ranges from 3% to 10% per annum.
Competition is severe in all the market segments. Consequently, there is
continuous pressure on the margins.
The image of the Company, built through decades of quality
products and efficient customer service is the major strength of the Company.
The Company has a significant share of the Rigid PVC film market and is the
Quality Leader in the Flexible PVC film market.
OPPORTUNITIES
With continuing growth in demand for the products, there are
opportunities to increase sales by enhancing capacity.
The Company has initiated steps to increase its Rigid Film
capacity by installing an additional Calender. Capacity for PVDC coated PVC
films is also being enhanced. Both these projects are expected to be completed
during the year 2007. Additional capacity will also give an opportunity to
increase exports and thereby reduce the dependence on the domestic market which
presently accounts for nearly 90% of sales.
FINANCIAL PERFORMANCE
Sales for the year is Rs. 1370 millions as compared to Rs.
1390 millions during the previous year. Due to capacity constraints for the
major products, the Company could not increase its volumes significantly.
Profit before tax and extraordinary items was Rs. 71.500 lacs as compared to
Rs. 57.100 lacs for the previous year. Due to steep rise in the crude oil
prices, energy and transportation costs have risen significantly during the
year. Profitability improved due to lower raw material cost through efficient
purchasing and operational efficiencies.
Website Details :
Subject is one of the largest manufacturers of PVC Films in
Subject is a Public Limited company and became a part of EVC
group in 1997. EVC was acquired by the INEOS group in 2001. Caprihans India
Limited is today a part of the INEOS Films Group (www.ineosfilms.com) worldwide.
The company has 4 calendaring lines, 3 extruder lines, 2
lamination and coating lines as also printing and embossing lines at its
production units at Thane and
A series of computerized in-process controls ensures a high
level of quality products to their customers. This along with continuous
modernization and know-how exchange with INEOS group companies ensures that their
customers get expert application support backed by experience and expertise of
multi disciplinary teams.
The entire organization is focused towards customer
satisfaction. This is ensured by an extensive network of branches and
warehouses spread out at different geographical locations all over
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.44.01 |
|
|
1 |
Rs.81.74 |
|
Euro |
1 |
Rs.55.04 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP
CAPITAL |
1~10 |
5 |
|
OPERATING
SCALE |
1~10 |
4 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT
LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
NO |
|
--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 |
|
52 |
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 |