MIRA
INFORM REPORT
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Report Date : |
30.04.2007 |
IDENTIFICATION DETAILS
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Name : |
SHIVATHENE LINOPACK – A DIVISION OF SHIVALIK AGRO – POLY PRODUCTS
LIMITED |
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Registered Office : |
Plot No. 1-A, Sector III, Industrial Area, Parwanoo – 173220, Himachal Pradesh |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
07.12.1976 |
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Com. Reg. No.: |
3703 |
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CIN No.: [Company
Identification No.] |
L15131HP1976PLC003703 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PTLS14327F |
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PAN No.: [Permanent
Account No.] |
AACCS1454K |
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Legal Form : |
Subject is a public limited liability company. The company's shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers of Plastic Products |
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 370000 |
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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 Office/ Works : |
Plot No. 1-A, Sector
III, Industrial Area, Parwanoo – 173220, |
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Tel. No.: |
91-1794-22308/22209 |
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Mobile No.: |
91-1794-22910 |
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Fax No.: |
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Mohali Office : |
B-45, Industrial Focal Point, Phase-Ill, S.A.S. Nagar (Mohali)-I60
055, Punjab, |
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Regional Office : |
409, |
DIRECTORS
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Name : |
Mr. P J Singh |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Pankaj K Mahajan |
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Designation : |
Managing Director |
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Name : |
Mr. R C Gupta |
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Designation : |
Director (Works) |
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Name : |
Dr. G D Tyagi |
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Designation : |
Director (Technical) |
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Name : |
Mr. Sanjay Gupta |
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Designation : |
Director |
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Name : |
Mr. Pawan Trehan |
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Designation : |
Director |
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Name : |
Mr. S S Ghuman |
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Designation : |
Director (Nominee of PUNSUP) |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Plastic Products |
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Products : |
v
Polythene Film/Lay Flat Tubing : Code Number:39.20 v
Polyol & PU System v
Flexible Packaging |
PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Film Unit |
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Polythene film/lay flat tubing & its fabricated items |
MT |
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5100 |
1560 |
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Shivathene Linopack (Polyol Division) (A unit of Shivalik Agro Poly Products Limited) |
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Polyols |
MT |
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600 |
332 |
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Consumption of
Raw Materials |
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Film Unit |
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LDPE Granules |
MT |
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1612 |
86695483 |
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Sundry Additives |
MT |
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22 |
2697211 |
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Shivathene Linopack (Polyol Division) (A unit of Shivalik Agro Poly Products Limited) |
MT |
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Oils |
MT |
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29 |
1126942 |
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Chemicals |
MT |
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309 |
31183300 |
GENERAL INFORMATION
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No. of Employees : |
250 |
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Bankers : |
Bank of State Bank of |
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Facilities : |
Secured Loans : (Rs.
in millions)
Unsecured Loans
:
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
B K Anand & Company Chartered Accountants |
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Address : |
Flat No.103, Silver Arch Apartments, 22, |
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Associates : |
v Shivalik Prismo India Private Limited v Shivalik Prismo India Private Limited v Rozelle Cosmetics Private Limited v IPF Vikram India Limited v IPF Vikram India Limited v IPF Vikram India Limited v Vikram Urethane Private Limited v Shivalik Apparels Private Limited v Cyrus Surfactants Private Limited v
Harjas Apparels Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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4900000 |
Equity Shares |
Rs.10/- each |
Rs.49.000 millions |
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10000 |
Cumulative Preference Shares |
Rs.100/- each |
Rs.1.000 millions |
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Total |
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Rs.50.000
millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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886000 |
Equity Shares |
Rs.10/- each |
Rs.8.860 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
8.860 |
8.860 |
8.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
84.567 |
70.804 |
65.600 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
93.427 |
79.664 |
74.500 |
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LOAN FUNDS |
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1] Secured Loans |
59.885 |
59.097 |
82.500 |
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2] Unsecured Loans |
3.406 |
3.950 |
4.400 |
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TOTAL BORROWING |
63.291 |
63.047 |
86.900 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
156.718 |
142.711 |
161.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
70.793 |
57.152 |
53.600 |
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Capital work-in-progress |
1.903 |
0.000 |
0.100 |
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INVESTMENT |
3.128 |
3.177 |
3.200 |
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DEFERREX TAX ASSETS |
1.388 |
1.309 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
31.317 |
26.999 |
39.700 |
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Sundry Debtors |
52.994 |
51.631 |
57.500 |
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Cash & Bank Balances |
13.351 |
7.310 |
14.600 |
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Other Current Assets |
0.051 |
0.084 |
0.000 |
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Loans & Advances |
21.516
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21.479 |
28.800 |
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Total
Current Assets |
119.229
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107.503 |
140.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
46.844
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37.112 |
50.300 |
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Provisions |
0.000
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0.000 |
0.000 |
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Total
Current Liabilities |
46.844
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37.112 |
50.300 |
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Net Current Assets |
72.385
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70.391 |
90.300 |
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MISCELLANEOUS EXPENSES |
7.121 |
10.682 |
14.200 |
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TOTAL |
156.718 |
142.711 |
161.400 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
308.208 |
256.956 |
202.300 |
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Other Income |
4.462 |
7.255 |
2.000 |
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Total Income |
312.670 |
264.211 |
204.300 |
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Profit/(Loss) Before Tax |
12.451 |
3.536 |
(8.100) |
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Provision for Taxation |
(1.584) |
(1.985) |
0.500 |
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Profit/(Loss) After Tax |
14.035 |
5.521 |
(7.600) |
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Expenditures : |
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Manufacturing Expenses |
199.830 |
153.109 |
4.000 |
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Administrative Expenses |
NA |
NA |
11.000 |
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Raw Material Consumed |
NA |
NA |
123.400 |
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Excise and Customs Duty Paid |
28.241 |
23.330 |
NA |
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Miscellaneous Expenses |
NA |
NA |
8.100 |
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Salaries, Wages, Bonus, etc. |
30.605 |
30.662 |
25.900 |
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Interest |
8.039 |
10.976 |
12.100 |
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Employees Voluntary Retirement Scheme |
3.560 |
3.560 |
NA |
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Power & Fuel |
NA |
NA |
5.700 |
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Depreciation & Amortization |
3.736 |
3.416 |
3.500 |
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Other Expenditure |
28.631 |
24.393 |
18.700 |
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Total Expenditure |
302.643 |
249.447 |
212.400 |
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KEY RATIOS
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
0.76 |
1.02 |
1.05 |
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Long Term
Debt-Equity Ratio |
0.31 |
0.33 |
0.34 |
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Current Ratio |
1.44 |
1.32 |
1.37 |
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TURNOVER RATIOS |
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Fixed Assets |
2.77 |
2.51 |
2.03 |
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Inventory |
10.57 |
7.71 |
5.21 |
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Debtors |
5.89 |
4.71 |
3.33 |
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Interest Cover
Ratio |
2.77 |
1.24 |
0.33 |
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Operating Profit
Margin(%) |
9.73 |
7.20 |
3.71 |
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Profit Before
Interest And Tax Margin(%) |
8.63 |
5.99 |
1.98 |
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Cash Profit
Margin(%) |
5.65 |
2.53 |
(2.03) |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
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High |
Rs.32.00 |
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Low |
Rs.32.00 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
Turnover during the year under review was Rs. 308.208 Millions as
against Rs. 256.956 Millions in the previous year. There is an increase in
turnover by approximately 20% in the current year over last year. The increase
in turnover is attributed to increase in sales of plastic film, PU Systems and
income from conversion charges.
In the year under review the Company has earned net profit of Rs. 14.035
Millions as against net profit of Rs. 5.521 Millions in the previous year
representing an increase of 154.21 % over the last year.
During the year, the Company has enhanced the production capacity of
polythene film unit from the existing 3500 MT per annum to 5100 MT per annum.
With this enhancement of production capacity, the entire plastic division has
become excise free for ten years and income tax free for five years, and for
next five years, the profits to be taxed at 70% under the fiscal benefits
announced by the Central Government for the State of
FUTURE OUTLOOK
During 2006-07, the Company envisage better sales of plastic film in the
ensuing year as the Company expects good business in multilayer film as it has
secured annual rate contract from Milkfed,
CHANGE IN
MANAGEMENT CONTROL
Public Offer as required under SEBI (Substantial Acquisition of Shares and
Takeovers) Regulations has been completed after the same is cleared by SEBI.
The total equity shares held by erstwhile promoters i.e.Anand Family stand
transferred in the name of Shri RJ. Singh, Shri RK. Mahajan and their
associates along with all the equity shares as received from the public under
the public offer.The complete control of the Company is now with Shri P.J.
Singh & Shri RK. Mahajan and their associates.
Consequently, Shri Atul P Anand, Shri Anil P Anand and Shri Sandeep
Gupta, Directors resigned from the Board of Directors of the Company. The
Directors express their profound thanks to the outgoing Directors for their
valuable guidance given to the Company during the tenure of their office.
Further, Mr. RJ. Singh, Chairman in view of his long association, timely
advice and contribution towards the growth and development of the Company has
been appointed as Chairman and Managing Director by the Board of Directors of
the Company.
In accordance with the requirements of Companies Act, 1956, Mr. S.S.
Ghuman & Mr. Sanjay Gupta retire by rotation and are eligible for
re-appointment.
Fixed Assets :
v
v
v
v
Factory & Other Buildings
v
Electrical Installations
v
Plant & Machinery:
v
Film Unit
v
CC Unit
v
Polyol Unit
v
Vapocure Unit/Pad
v
D.G.Sets
v
Furniture.Fixture & Other
v
Equipment
v
Motor Vehicles
v
Temporary Shed
v
Technical Know how
Website Details :
THE
PRODUCT PORTFOLIO
Subject manufactures Polyols for the Polyurethane Industry, with
its works located at Parwanoo (H.P.)
Polyurethanes are very versatile and their nature varies
depending upon the additives contained in the Polyol part of the Polyurethane
system. Shivathene Linopack, Parwanoo offers Polyols/Polyurethane Coatings, Cable
Jointing compounds, Potting & Encapsulation compounds for Electrical and
Electronic components, Elastomers
and Polymer Concrete.
Subject has developed through its R & D in the coatings
field Thermoplastic marking materials aimed at the Roads Sector. This product
will aim at making available in the Indian road industry a product which
will better imported road marking materials on all fronts.
Subject through its Polyurethanes R & D is developing PU
applications in a variety of other existing and sunrise industries which will
enable it to expand its product profile.
Subject has emerged as a major player in the Polyurethane
industry in
*Rigid Foams.
*Coatings
*Cold Cure/Integral Skin
*Electrical/Electronic/Telecom Insulation Resins
*Elastomers & Adhesives.
*Microcellular Elastomers/Footwear Grade Resin
In a birds eye view, the product range given here
facilitates the user to select the appropriate Characteristics required to
specific industry applications.
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PRODUCT |
PROPERTIES |
INDUSTRY |
APPLICATIONS |
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COATINGS |
Surface dry (Mins):30 Flexibility &
Adhesion:(Pass to test IS-101-1964) Coverage:1-10 Sq.Mtr.per Coat per
kg. at DFT 35/40 microns |
CONSTRUCTION & CHEMICAL
CIVIL CONSTRUCTION. CHEMICAL CONSTRUCTION. |
Natural colour Air Drying
Water-Proofing Interior & Exterior Surfaces, Lacquers Coating on FRP
Surfaces and floors of any type. Chemical resistant coatings,
Anti-Corrosive Coatings for Metallic & non-metallic Surface. |
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RIGID FOAMS |
Thermal conductivity at 10
degree C(w/ml):0.018 Moulded Density (Kg/m3):35-500 Dimentional Stability at
various conditions (% volume change max): +-1.5 |
HOME APPLIANCES CONSTRUCTION& INSULATION REFRIGERATION& INSULATION |
Casseroles,Thermowares Sandwich Panels,Pipe
Sections,Blocks/Slab Stocks In-situ Pouring, Spray Foam Air-conditioning
Insulation,Refrigerator Insulation , Deep Freezers Insulation,Cold Storage
Insulation. |
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PRODUCT |
PROPERTIES |
INDUSTRY |
APPLICATIONS |
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CABLE JOINT & POTTING COMPOUND FOR
ELECTRICAL/ELECTRONIC TELECOM COLD CURE/INTEGRAL SKIN ELASTOMER/ADHESIVES MICRO-CELLULAR ELASTOMER/FOOTWEAR GRADE RESIN |
Pot life(Mins):15-30 Tensile Strength(N/mm2):5-250
Hardness(Shore-D):0-70 Dielectric Strength(KV/mm):2-16 (Tested to IS-10333-1982) Cream Time(Sec):4-5 Density(kg/m3):45-100 Hardness(Shore-D):30-70Heat Resistance(max 0c):140 Curing
Time(Hrs):48 Highly abrasion resistant Tensile Strength(kg./m2):250-500 |
ELECTRICAL/ELECTRONICS/TELECOM AUTOMOBILE/AUTOMOTIVE COMPONENTS,FURNITURE. CONSTRUCTION ENGINEERING FOOTWEAR AUTOMOTIVE COMPONENTS |
Potting of Electrical/Electronics Components(Capacitors,Chokes,Flasher)Coating
of Instrument Transformers,Switch Gears Insulation,Cable Jointing &
Termination. Seat cushion, Steering Wheel ,Bumper, Dash Board,
Arm-Rest, Head Rest, Etc. Expansion & jointing Compounds for Bridges, Roads
& Civil Construction. Engineering compounds for Castor & Trolley
Wheels,Heavy Duty Tyres,Rollers,Conveyor Rollers, Impellors. Shoe Soles Shock absorber for Two Wheeler & Cars, Air-Filters for
Automobiles(PU Casing) |
Products
WAREHOUSING
AND STORAGE PROTECTION
POLY CAP (COVERS & PLINTH) COVERS
These are meant for Complete coverage of food grains in the
open with operational flexibility.
Poly CAP storage covers are economical at all levels compared to cement/bricks
constructed covers godowns and are internationally referred to as
"portable warehousing".
FUMIGATION COVERS
These covers trap the fumes of chemicals in its entirely and
provide most desirable enclosed space without any leakage hazard for protection
to grains against insects, pests, rodents etc.
POLY TARPAULINES
Poly Tarpaulins are drip-proof and water-proof and provide
protection to the stores from rains ,sun ,dust and storm at a price
considerably cheaper than the conventional convass tarpaulins
SILAGE BAGS & DUMPS
For storing fodder to retain its freshness for longer
period.
POLY FLAP COVERS
Useful for protection of harvested crops (bushels) lying in
the field against unexpected rain, hail-storm and snow. These overs can also be
used for storing "Toori" or "Bhusa" as cattle fodder.
WATER MANAGEMENT
POLY FILM FOR LINING OF WATER CHANNELS
Polyytheylene is an excellent economical medium for lining
of channels of fields /farms to prevent seepage losses,for making the optium
use of water.
POLY LINING FOR RESERVOIRS/TANKS/PONDS FOR STORAGE OF WATER
Poly-lining has made it easier to develop captive ponds for storage
of water for irrigation,industry and domestic uses both in hills and plans.
GEOMEMBRANE
Thick LDPE/LLDPE geomembrane sheets upto a width of 6.5
meters and thickness upto 2.0mm; these sheets are normally available in
accordian folded/rolls of length 30 meters or as per customers
requirement.Prime application being Storage Ponds,Reservoirs Effluent Ponds and
other heavy duty applications.
POLY—FARMING
FISH FARMING
The lining of Fish Ponds with polyethylene makes Fish
Farming possible even in areas where water is scarecely available.
GREENHOUSE AND PROTECTIVE TUNNELS
With the evolution of Green Houses the plantation is done
under controlled conditiions,resulting in cultivation of non-seasonal crops
with high economic yeilds.
INDUSTRIAL APPLICATIONS
POLY FILM FOR SHRINK WRAP PACKAGING & POLY POUCHES
For bundling tray pack and pallet load utilization.It is the
universally accepted best system for industrial and consumer products packaging
POLY LINING OF EFFLUENT TANKS/LAGOONS
For environmental pollution control.
WATER-PROOFING OF ROOFS AND DAMP-PROOFING OF BASEMENTS ETC.
The treatments laid with Polyethlene are economical and
durable than those of conventional materials as polyethlene does not decay and decompose
with soil,water and weathering effect.
POLY FILM AS DUNNAGE FOR USE IN GODOWNS AND WARE-HOUSES
For protection of hygroscopic commodities from sub-soil
moisture.
ECONOMICAL TEMPORARY SHELTERS
For storage, dwellings and parking areas of Cars, Scooters
and Cycles etc.
COLOURED GRANULES AND COMPOUNDS
They have equipment and technology comparable to
international standards. They undertake custom processing of Rubber Compounds
and manufactured special compound for making LDPE ultra violet resistant grades
and coloured granules with special carbon base compounds. They specialise in
Cable sheathring Polythene Compound for making Tele-communication Cables
armoured/ unarmoured to B.S. Specification No.BS-6234-03C
Profile
Incorporated in 1976 SAPL was established as a pioneering
venture in
The plant is capable of making Polyethylene sheets upto
12 metres wide width and in thickness range from 100 micron to 2000 micron. The
Company's works are located at Parwanoo(H.P.) 30 kilometres from
Subject is also processor of Cable Sheathing Compound,
Polypropylene Homopolymer/ Copolymer Compounds and has a tie-up with Indian
Petrochemicals Corporation Limited (IPCL). The Company has a good standing in
the Polyethylene sheet market and is well known for its enterprising work in
the use of plastics in Agriculture and Water Management.
The Company has been processing over 5000 MTA of
Polyethylene and selling 600 MTA of Polyuretane systems representing a turnover
of approximately Rs.360 millions (US $ 8.25 million)
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.41.29 |
|
|
1 |
Rs.82.30 |
|
Euro |
1 |
Rs.56.20 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
49 |
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 |
|