MIRA
INFORM REPORT
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Report Date : |
24.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
MANALI PETROCHEMICAL LIMITED |
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Registered Office : |
SPIC Centre, 88, Mount Road, Guindy, Chennai 600032, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
11/06/1986 |
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Com. Reg. No.: |
18-13087 |
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CIN No.: [Company
Identification No.] |
L24294TN1986 PLC 013087 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEM00306F |
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Legal Form : |
A public limited liability company, Company’s shares are listed on Stock Exchanges. |
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Line of Business : |
The company is engaged in the business of manufacture of Petrochemicals. |
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 4000000 |
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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 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 Office : |
SPIC Centre, 88, Mount Road, Guindy, Chennai 600032, Tamilnadu, India |
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Principal Office & Plant I: |
Ponneri High Road, Manali, Chennai – 600068 |
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Tel. No.: |
91-44-25941025, 25941249, 25941253 |
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Fax No.: |
91-44-25941199 |
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E-Mail : |
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Plant II: |
Sathangadu Village, Manali, Chennai – 6000680 |
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Tel. No.: |
91-44-25941698, 25941402 |
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Secretarial Department: |
Ponneri High Road, Manali, Chennai 600068 |
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Tel. No.: |
91-44-25943895 |
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E-Mail : |
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Website: |
DIRECTORS
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Name : |
Dr. A. C. Muthiah |
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Designation : |
Chairman |
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Name : |
Ar. Rm Arun |
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Designation : |
Director |
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Name : |
M. H. Avadhani |
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Designation : |
Director |
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Name : |
C. V. R. Panikar |
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Designation : |
Director |
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Name : |
G. Raghavendran |
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Designation : |
Director |
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Name : |
M. Sivagnanam |
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Designation : |
Director |
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Name : |
T. Willington |
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Designation : |
Director |
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Name : |
G. Ramachandran |
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Designation : |
Managing Director |
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Name : |
K. K. Rajagopalan |
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Designation : |
Director (Finance) |
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AUDIT COMMITTEE: |
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Name : |
M.Sivagnanam |
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Designation : |
Chairman |
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Name : |
Ar Rm Arun |
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Designation : |
Director |
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Name : |
M.H.Avadhani |
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Designation : |
Director |
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Name : |
C.V.R Painkar |
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Designation : |
Director |
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Name : |
G. Raghavendran |
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Designation : |
Director |
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Name : |
T.Willington (Nominee of TIDCO) w.e.f.19.10.2005 |
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Designation : |
Director |
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Company Secretary: |
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Name : |
S.Diraviam |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter and Associates |
5,13,85,702 |
44.81 |
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Individual |
4,85,52,040 |
42.34 |
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Corporate |
95,92,713 |
8.37 |
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Financial Institutions |
32,29,505 |
2.82 |
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NRI/OCBs |
18,95,643 |
1.65 |
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Banks |
10,550 |
0.01 |
BUSINESS DETAILS
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Line of Business : |
The company is engaged in the business of manufacture of
Petrochemicals. |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Propylene oxide |
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37,000 |
24,000 |
27,191 |
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Propylene Glycol |
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24,000 |
13,250 |
15,950 |
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Polyols |
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37,000 |
14,000 |
13,725 |
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PGMME |
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2,400 |
2,400 |
609 |
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Di-Propylene Glycol |
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1,500 |
- |
1,489 |
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Tri-Propylene Glycol |
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200 |
- |
161 |
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DCP and DCIPE |
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4,700 |
- |
3,871 |
GENERAL
INFORMATION
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No. of Employees : |
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Bankers : |
State Bank of India State Bank of Hyderabad State Bank of Patiala Indian Bank Canara Bank Punjab National Bank Corporation Bank State Bank of Bikaner and Jaipur Bank of India |
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Facilities : |
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Banking Relations
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Satisfactory |
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Auditors : |
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Name : |
M/s. Fraser and Ross, Chennai Chartered Accountant |
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Associates/Subsidiaries : |
Southern Petrochhemical Industries Corporation Limited -
Promoter Ind-Ital Chemicals Limited - Subsidiary
of Promoter Mr. G . Ramachandran -
Managing Director Mr. K.K.Rajagopalan - Director
(Finance) |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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12,00,00,000 |
Equity Share |
Rs.10/-(each) |
Rs.1200.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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11,46,66,153 |
Equity Share |
Rs.10/-(each) |
Rs.1146.662 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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860.347 |
1147.013 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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251.464 |
75.742 |
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4] (Accumulated Losses) |
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0.000 |
(353.262) |
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NETWORTH |
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1111.811 |
869.493 |
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LOAN FUNDS |
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1] Secured Loans |
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181.793 |
208.569 |
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2] Unsecured Loans |
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75.196 |
189.679 |
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TOTAL BORROWING |
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256.989 |
398.248 |
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DEFERRED TAX LIABILITIES |
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21.758 |
0.000 |
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TOTAL |
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1390.558 |
1267.741 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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493.034 |
574.806 |
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Capital work-in-progress |
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6.737 |
8.675 |
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INVESTMENT |
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0.045 |
0.045 |
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DEFERREX TAX ASSETS |
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8.337 |
15.325 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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424.324 |
426.956 |
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Sundry Debtors |
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358.522 |
356.346 |
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Cash & Bank Balances |
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305.454 |
56.848 |
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Loans & Advances |
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172.496 |
132.699 |
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Total
Current Assets |
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1260.796 |
972.849 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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270.420 |
294.162 |
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Provisions |
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107.971 |
9.797 |
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Total
Current Liabilities |
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378.391 |
303.959 |
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Net Current Assets |
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882.405 |
668.890 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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1390.558 |
1267.741 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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3266.946 |
2668.851 |
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Other Income |
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14.925 |
11.566 |
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Total Income |
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3281.871 |
2680.417 |
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Profit/(Loss) Before Tax |
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364.203 |
252.117 |
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Provision for Taxation |
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23.823 |
18.116 |
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Profit/(Loss) After Tax |
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340.380 |
234.001 |
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Earnings in Foreign Currency : |
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FOB value of Exports |
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40.837 |
14.509 |
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Freight and Insurances |
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1.420 |
0.332 |
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Total Earnings |
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42.257 |
14.841 |
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Imports : |
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Raw Materials |
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398.996 |
285.985 |
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Trade Goods |
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83.267 |
163.117 |
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Total Imports |
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482.263 |
449.102 |
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Expenditures : |
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Raw Material Consumed |
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1969.349 |
1619.983 |
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Purchases of trade goods |
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67.161 |
188.349 |
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Increase/(Decrease) in Finished Goods |
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63.918 |
(167.629) |
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Deferred Revenue Expenditure Written off |
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6.988 |
9.013 |
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Interest |
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(0.565) |
22.843 |
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Employee Cost |
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97.452 |
90.030 |
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Power & Fuel |
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364.884 |
302.424 |
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Depreciation & Amortization |
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102.885 |
102.639 |
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Other Expenditure |
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245.596 |
260.648 |
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Total Expenditure |
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2701.598 |
2428.300 |
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QUARTERLY /
SUMMARISED RESULTS
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PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
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Type |
1st qrty |
2nd qrty |
3rd qrty |
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Sales Turnover |
895.300 |
734.900 |
775.300 |
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Other Income |
04.700 |
03.300 |
02.200 |
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Total Income |
900.000 |
738.200 |
777.500 |
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Total Expenditure |
817.000 |
671.100 |
659.200 |
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Operating Profit |
83.000 |
67.100 |
118.300 |
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Interest |
0.000 |
( -04.500) |
( -00.100) |
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Gross Profit |
83.000 |
7.1600 |
118.400 |
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Depreciation |
25.800 |
25.800 |
25.800 |
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Tax |
00.200 |
00.200 |
08.400 |
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Reported PAT |
36.100 |
27.600 |
84.200 |
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Notes:
200606 Quarter 1 --------------- Notes Expenditure Includes
(Increase)/Decrease in Stock in Trade Rs 59.066 million Consumption of Raw Materials
Rs 566.101 million Staff Cost Rs 25.896 million Power Fuel & Water Rs
104.429 million Other Expenditure Rs 60.214 million Deferred Revenue
Expenditure w/off Rs 1.376 million Provision for Tax includes Current MAT Rs
6.413 million MAT Credit Availment Rs (6.413) million Deffered Tax Liability Rs
20.900 million Fringe Benefit Tax Rs 0.150 million EPS is Basic and Diluted
Status of Investor Complaints for the quarter ended June 30, 2006 Complaints
Pending at the beginning of the quarter Nil Complaints Received during the
quarter Nil Complaints disposed off during the quarter Nil Complaints
unresolved at the end of the quarter Nil 1. The above results were approved at
the meeting of the Board of Directors held on July 24, 2006 and have been
subjected to a limited review by the auditors of the company. 2. The Company
operates only in one business segment, viz Petrochemicals. 3. The Board has
approved consolidation of 2 equity shares of paid up value of Rs 7.50 each to
be split into 3 equity shares of paid up value of Rs 6 each, which is subject
to the approval of the shareholders in the ensuing Annual General Meeting of
the Company to be held on August 19, 2006. 4. The revised Accounting Standard
(AS) 15 Employee Benefits issued by the Institute of Chartered Accountants of
India which became effective from April 01, 2006 has been complied with and
there is no significant impact for the current quarter. The adjustments on
account of transitional provision will be dealt with in revenue reserves at
this year-end. 5. Previous years figures have been regrouped / reclassified
wherever necessary.
200609 Quarter 2 --------------- Notes Expenditure Includes (Increase)/Decrease in Stock in Trade Rs (27.135) million Consumption of Raw Materials Rs 496.186 million Staff Cost Rs 25.144 million Power Fuel & Water Rs 101.709 million Other Expenditure Rs 73.852 million Deferred Revenue Expenditure w/off Rs 1.376 million Provision for Tax includes Current MAT Rs 5.130 million MAT Credit Availment Rs (5.130) million Deferred Tax Liability Rs 17.998 million Fringe Benefit Tax Rs 0.156 million EPS is Basic and Diluted Status of Investor Complaints for the quarter ended September 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints Received during the quarter 21 Complaints disposed off during the quarter 21 Complaints unresolved at the end of the quarter Nil 1. The above results were approved at the meeting of the Board of Directors held on October 26, 2006. and have been subjected to a limited review by the auditors of the Company. 2. The Company operates only in one business segment, viz Petrochemicals. 3. Pursuant to the resolution passed by the shareholders at the AGM held on August 19, 2006 the equity share of Rs 7.50 per share have been consolidated and restructured with a face value of Rs 5 each w.e.f. October 07, 2006. The company has made necessary applications to list 17,19,99,229 equity shares of Rs 5 each on NSE/BSE and approvals are awaited The EPS on the face value of shares of Rs 5 each would be as follows Basic & Diluted EPS (Face Value of share Rs 5 each) Rs 0.16 4. The revised Accounting Standard (AS) 15 Employee Benefits issued by the Institute of Chartered Accountants of India which became effective from April 01, 2006 has been complied with and there is no significant impact for the current half year. The adjustments on account of transitional provision will be dealt with in revenue reserves at the year-end. 5. Previous years figures have been regrouped / reclassified wherever necessary.
200612 Quarter 3 --------------- Notes: Expenditure Includes
(Increase)/Decrease in Stock in Trade Rs (74.784) million Consumption of Raw
Materials Rs 535.073 million Staff Cost Rs 25.621 million Power Fuel &
Water Rs 89.131 million Other Expenditure Rs 73.832 million Deferred Revenue
Expenditure w/off Rs 0.616 million Provision for Tax includes Current MAT Rs
5.995 million MAT Credit Availment Rs (5.995) million Deferred Tax Liability Rs
19.904 million Fringe Benefit Tax Rs 0.229 million EPS is Basic and Diluted
Status of Investor Complaints for the quarter ended December 31, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 19 Complaints disposed off during the quarter 19 Complaints
unresolved at the end of the quarter Nil 1. The above results were approved at
the meeting of the Board of Directors held on January 24, 2007 and have been
subjected to a limited review by the auditors of the Company. 2. The Company
operates only in one business segment, viz Petrochemicals. 3. Pursuant to the
resolution passed by the shareholders at the AGM held on August 19, 2006, the
paid-up Equity Shares of Rs 7.50 per share have been sub-divided into equity
shares of Rs 5 each w.e.f. October 07, 2006. The EPS on the face value of
shares of Rs 5 each would be as follows Basic & Diluted EPS (Face Value of
share Rs 5 each) Rs 0.19 4. The revised Accounting Standard (AS) 15 'Employee
Benefits' issued by the Institute of Chartered Accountants of India which
became effective from April 01, 2006 has been complied with and there is no
significant impact for the current nine months. The adjustments on account of
transitional provision will be dealt with in revenue reserves at the year-end.
5. Previous years figures have been regrouped / reclassified wherever
necessary.
KEY RATIOS
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Debt-Equity Ratio |
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0.33 |
0.69 |
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Long Term Debt-Equity Ratio |
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0.31 |
0.57 |
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Current Ratio |
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2.70 |
2.61 |
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TURNOVER RATIOS |
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Fixed Assets |
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1.85 |
1.52 |
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Inventory |
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8.87 |
9.17 |
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Debtors |
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10.57 |
8.50 |
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Interest Cover Ratio |
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21.24 |
8.27 |
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Operating Profit Margin(%) |
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12.85 |
12.67 |
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Profit Before Interest And Tax Margin(%) |
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10.12 |
9.33 |
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Cash Profit Margin(%) |
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11.74 |
10.96 |
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Adjusted Net Profit Margin(%) |
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9.01 |
7.62 |
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Return On Capital Employed(%) |
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25.78 |
16.65 |
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Return On Net Worth(%) |
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29.16 |
19.14 |
LOCAL AGENCY
FURTHER INFORMATION
Continuing the positive trend, your company has further improved its performance during the year and the profit after tax has risen from Rs.234.000 Millions to Rs.340.3 Millions this year. The trend of the profits and sales turnover for the past few years are summarized in the graph in Page No: 30.
OPERATIONAL HIGHLIGHTS:
Your company maintained the trend of higher production and sales and the capacity utilization were maintained close to 100% for all the process plants. Our achievements in reduction of power and utility consumption are as per the graphs in Page No: 8.
This year also, utilizing the better market conditions, better selling
price, your company increased its sales volume and thus the capacity
utilization of all the plants, which resulted in the improved performance for
the year. The turnover increased from Rs.3070.000 Millions to Rs.3780.000
Millions and the profit after tax increased from Rs.234.000 Millions to
Rs.340.300 Millions.
The process of capital reduction after approval of members was taken at the
Extraordinary General Meeting on 19th October 2005 has been completed and the
necessary orders from the Hon'ble High Court of Madras were obtained on 15th
March 2006 and the carried over losses have been fully wiped out. Thus, your
company has retained all the profits of Rs.340.300 Millions in the current
year.
MARKET SCENARIO:
The tight supply situation and higher price scenario
of both MDI and TDI continued during the current year also. This posed problems
in the marketing of the polyol formulations, which to an extent was partly
overcome by reformulation of the product and sourcing isocyanate as per the
availability. This definitely helped the company to stabilize the sales.
However, the product mix got skewed resulting out of the above scenario.
The company could secure further orders for the specialty products in the
system segment including glycols for oil exploration and production.
FUTURE OUTLOOK AND NEW PRODUCTS:
The use of polyurethanes in India is continuously
increasing and markets in most of the segments are growing steadily. It is
estimated that the market will double by itself within the next 4 to 5 years.
Hence, your company can reasonably be sure that it will be able to maintain its
operational performance at current levels and at the same time, the company's
focus to increase production and maintain its market share of the enlarged
market, will continue.
The newer product of prepolymers developed to overcome the shortage of
MDI has done exceedingly well and it is estimated that this would be of
tremendous help to the company in future, whenever such shortages threaten
operations.
Fixed Assets:
- Land
- Development on lease-hold land
- Plant and Machinery
- Furniture and Fixture
- Office Equipments
- Vechicle
MPL operates two grass route production facilities at Manali near Chennai to manufacturer Propylene oxide (PO), Propylele Glycol (PG) and polyol. MPL markets its poolyols with isocyanate imported from Japan and TDI prepolymers produced at MPL for meeting the demand from polyurethane industry in India.
MPL is currently producing 27000 MTPA of Propylene Oxide, 14,000 MTPA of Propylene Glycol and 15,000 MTPA of Polyether Polyol And System Polyol.
Manali Petrochemical Ltd Plant-I (originally built by SPIC) set up with the technology of Atochem for manufacture of PO and PG and that of Arco for manufacture of Polyuol acquired through Technip, France. Manali Petrochemical Ltd Plant-II (originally joint venture of UB and TIDCO) was merged with MPL later utilizes the technology of Enichem of Italy for the PO and PG and Press Industrial for manufacture of Polyol.
Product Licensed Capacity Technology
MPL (Plant -I) MPL (Plant -II)
PO 37000 Mt ATOCHEM/TECHNIP ENICHEM
PG 24000 Mt ATOCHEM/TECHNIP ENICHEM
POLYOL 37000 Mt ARCO/TECHNIP PRESS INDUSTRIA
CODE OF CONDUCT FOR DIRECTORS OF THE COMPANY
Objective
Manali Petrochemical Ltd (“the Company”) is conscious that a business run on
principles of fairness, transparency and accountability aids in fostering a
healthy relationship with all stakeholders. The Company considers ethical
conduct of business as one of the most important factors which will contribute
to the fulfillment of the Company’s corporate objectives.
This Code of Conduct will be applicable to the Directors of the Company.
The Company’s Code of Conduct envisages that every Member of the Board of Directors, individually and, the Board of Directors, collectively, will, at all times, pursue and uphold values as vigorously as their pursuit of the Company’s corporate objectives. The Board of Directors of the Company has, accordingly, adopted this Code as a guide to the high ethical standards and values expected from its Members.
Any change in this code will be made only with the approval of the Board of
Directors of the Company.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service, Interpol,
etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.39 |
|
UK Pound |
1 |
Rs.85.16 |
|
Euro |
1 |
Rs.57.60 |
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 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
|
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
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
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 |
|