MIRA INFORM
REPORT
|
Report
Date : |
10.05.2007 |
IDENTIFICATION DETAILS
|
Name : |
POLY MEDICURE LIMITED |
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Registered
Office : |
First Floor, 12, Sant Nagar, East of Kailash, |
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Country
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
30/03/1995 |
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Com.
Reg. No.: |
55-66923 |
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CIN
No.: [Company
Identification No.] |
L74899DL1995PLC066923 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
RTKP01741F |
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Legal
Form : |
Public limited liability company. Company’s shares are
listed on Stock Exchanges. |
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Line
of Business : |
Manufacturer of
disposable healthcare products |
RATING
& COMMENTS
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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
1114000 |
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Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
Subject is a well established company having satisfactory
track. Directors are reported as experienced, respectable and having satisfactory
means of their own. Their trade relations are fair. General financial
position is good. Payments are usually correct and as per commitments. The company can be considered good for normal business
dealings at usual trade terms and conditions. |
LOCATIONS
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Registered
Office : |
First Floor, 12, Sant Nagar, East of Kailash, |
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Tel.
No.: |
91-11-26481889, 26481893,
26481899, 26481838 |
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Fax
No.: |
91-11-26481894, 26481839 |
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E-Mail
: |
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Website
: |
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Factory : |
Ø Unit I – Plot No. 104-105, Sector
59, HSIDC Industrial Estate, Ballabhgarh, Tel No. : 91-129-2307000/01 Fax No. : 91-129-2307007/230 Ø Unit II – Plot No. 115, Sector 59,
HSIDC Industrial Estate, Ballabhgarh, Ø Unit-lll – Plot No. 113, Sector 59,
HUDA Industrial Estate, Ballabhgarh, Ø Unit-III – Plot No. 116, Sector
59, HSIDC Industrial Estate, Ballabhgarh, Faridabad, Haryana, India. Ø UnitIV – Plot No. 17, Sector 3,
Industrial Estate IIE, |
DIRECTORS
|
Name : |
Mr. D. R. Mehta |
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Designation
: |
Chairman |
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Name : |
Mr. Dr. S. R. Mohnot |
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Designation
: |
Director |
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Name : |
Mr. J. K. Baid |
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Designation
: |
Director |
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Name : |
Mr. Y. S. Choudhary |
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Designation
: |
Director |
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Name : |
Mr. P. C. Surana |
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Designation
: |
Director |
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Name : |
Mr. Himanshu Baid |
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Designation
: |
Managing Director |
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Qualification
: |
Electronics Engineer |
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Age : |
37 years |
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Experience
: |
15 years |
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Date
of Appointment : |
20.09.1996 |
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Last
employment : |
Hanuman Tin Factory |
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Name : |
Mr. Rishi Baid |
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Designation
: |
Executive Director |
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Qualification
: |
BSME, MSME |
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Age : |
33 years |
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Experience
: |
10 years |
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Date
of Appointment : |
1.08.1997 |
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Last
employment : |
Miles Parma INC, |
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Other
Personal : |
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Name : |
Mr. Y. P. Bansal |
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Designation
: |
Company Secretary |
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Name : |
Mr. D. K. Gupta |
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Designation
: |
Senior Executives – Operations |
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Name : |
Mr. V. K. Khera, A V P |
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Designation
: |
Senior Executives – Works |
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Name : |
Mr. J. K. Oswal |
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Designation
: |
Senior General Manager and Senior Executives – Finance |
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Name : |
Mr. G. R. Bajaj, A V P |
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Designation
: |
Senior Executives – Marketing |
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Name : |
Mr. P. S. Negi |
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Designation
: |
Senior Executives |
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Audit
Committee : |
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Name : |
Dr. S R Mohnot |
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Designation
: |
Director |
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Name : |
Mr. Y S Choudhary |
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Designation
: |
Director |
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Name : |
Mr. P C Surana |
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Designation
: |
Director |
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Executive Committee: |
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Name : |
Dr. S R Mohnot |
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Designation
: |
Director |
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Name : |
P C Surana |
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Designation
: |
Director |
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Name : |
Mr. D R Mehta |
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Designation
: |
Director |
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Name : |
Mr. Himanshu Baid |
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Designation
: |
Director |
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Name : |
Mr. Rishi Baid |
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Designation
: |
Director |
KEY
EXECUTIVES
|
Name : |
Mr. Anil
Singh |
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Designation
: |
Company
Secretary |
MAJOR
SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
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1 . Promoters Holding |
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--Indian Promoters |
2098096 |
38.854 |
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--Foreign Promoters |
-- |
-- |
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Persons Acting in Concert |
431200 |
7.985 |
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Sub-Total
(1) |
2529296 |
46.839 |
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Non-Promoters Holding |
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-- Flls |
21034 |
0.39 |
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Sub-Total
(2) |
21034 |
0.39 |
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4. Others |
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--Private Corporate Bodies |
1769528 |
32.769 |
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--Indian Public |
1050196 |
19.448 |
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--NRIs/OCBs |
21010 |
0.389 |
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--Any other -Clearing member |
8936 |
0.165 |
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Sub-Total
(3) |
2849670 |
52.771 |
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Grand
Total |
5400000 |
100.000 |
BUSINESS
DETAILS
|
Line
of Business : |
Manufacturer of
disposable healthcare products |
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Products
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
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Medical
Disposables |
Lacs Nos.
|
1972 |
1210 |
114341325 |
GENERAL
INFORMATION
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Bankers
: |
State Bank of |
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Facilities : |
Notes : 1 Term Loans from Bank are secured by first charge by way
of mortgage on all immovable assets and hypothecation of all the movable
assets ( both present and future) subject to prior charge in favour of the
Company's bankers on specified movable assets for working capital borrowings
and guaranteed by three promoter directors of the company. 2 Cash/Export Credit Loans are secured by first charge by
way of hypothecation of all current assets(both present and future) and
second charge by way of hypothecation of all the fixed assets of the Company,
and further secured by guarantee of three promoter directors of the Company. 3 Vehicle Loans are secured by hypothecation/lien of the
respective vehicles. 4 Term Loans repayable within one year Rs 26.800 millions
( previous year Rs.23.820 millions) 5 Other Loans repayable within one year Rs. 0.560 millions
( previous year Rs. 1.064 millions) |
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Banking Relations : |
Satisfactory |
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Auditors
: |
Chaturvedi and Company Chartered Accountants |
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Associates
: |
Ultra for Medical Products (UMIC), |
CAPITAL
STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
6000000 |
Equity Shares |
Rs. 10 each |
Rs. 60.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
5400000 |
Equity Shares |
Rs. 10 each |
Rs. 54.000 millions |
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
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 |
54.000 |
54.000 |
53.060 |
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3]
Reserves & Surplus |
224.573 |
165.135 |
114.057 |
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NETWORTH
|
278.573 |
219.135 |
167.117 |
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LOAN
FUNDS |
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1]
Secured Loans |
148.282 |
162.846 |
111.662 |
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2]
Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL
BORROWING
|
148.282 |
162.846 |
111.662 |
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DEFERRED
TAX LIABILITIES |
20.619 |
19.628 |
15.858 |
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DEFERRED
PAYMENT CREDIT |
8.875 |
4.099 |
6.831 |
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TOTAL
|
456.349 |
405.708 |
301.468 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
322.017 |
298.198 |
221.024 |
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Capital work-in-progress
|
31.620 |
7.911 |
11.386 |
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INVESTMENT
|
22.041 |
8.746 |
3.291 |
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CURRENT ASSETS, LOANS & ADVANCES
|
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Inventories
|
75.014
|
80.795
|
58.046 |
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Sundry Debtors
|
86.089
|
59.884
|
62.215 |
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Cash & Bank Balances
|
7.160
|
10.188
|
8.703 |
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Other Current Assets
|
4.162
|
6.752
|
11.924 |
|
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Loans & Advances
|
22.307
|
28.233
|
12.504 |
Total Current Assets
|
194.732 |
185.852
|
153.392 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
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Current Liabilities
|
99.329
|
80.477
|
76.616 |
|
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Provisions
|
17.010
|
14.522
|
11.009 |
Total Current Liabilities
|
116.339 |
94.999
|
87.625 |
|
Net
Current Assets
|
78.393 |
90.853
|
65.767 |
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MISCELLANEOUS EXPENSES
|
2.278 |
0.000 |
0.000 |
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TOTAL
|
456.349 |
405.708 |
301.468 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales
Turnover [including other income]
|
705.764 |
650.831 |
496.563 |
|
|
|
|
|
Profit/(Loss)
Before Tax
|
85.162 |
76.500 |
61.824 |
Provision
for Taxation
|
13.409 |
15.670 |
18.492 |
Profit/(Loss)
After Tax
|
71.753 |
60.830 |
43.332 |
|
|
|
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|
Export Value |
525.156 |
49.079 |
NA |
|
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|
|
Import Value |
200.772 |
211.942 |
NA |
|
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|
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Total
Expenditure
|
620.441 |
581.068 |
434.667 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st Qtr |
2nd Qtr |
3rd Qtr. |
|
Sales Turnover |
201.600 |
201.200 |
221.100 |
|
Other Income |
0.000 |
0.200 |
3.700 |
|
Total Income |
201.600 |
201.400 |
224.800 |
|
Total Expenditure |
161.300 |
162.700 |
188.500 |
|
Operating Profit |
40.300 |
38.700 |
36.300 |
|
Interest |
4.300 |
5.100 |
4.900 |
|
Gross Profit |
36.000 |
33.600 |
31.400 |
|
Depreciation |
8.900 |
8.800 |
09.300 |
|
Tax |
5.900 |
4.200 |
4.100 |
|
Reported PAT |
20.900 |
20.100 |
17.800 |
200606 Quarter 1
Notes:-
1. The above results were reviewed by the Audit Committee
and taken on record by the Board of Directors at their meeting held on July 31,
2006 2. The Company is engaged is a business of manufacture viz 'Medical
Disposables' and hence there is no reportable segments as per Accounting
Standard - 17 issued by ICAI 3. The Statutory Auditors have carried out a
Limited Review of the results for the quarter ended 30.06.2006. 4. The Company
did not received complaints during the quarter. There was no pending complaint
either at the beginning at the end of the quarter. 5. The previous periods
figures have been regrouped / recasted, wherever necessary, to make them
comparable with the current period figures. 6. Expansion Projects are
progressing as per schedule.
200609 Quarter 2
Notes
1. The Company is engaged in a business of 'Medical Disposables'
and hence, there is no reportable segments as per accounting standard-17 issued
by ICAI. 2. The expansion projects are progressing as per schedule. 3. The
company did not receive any investors complaints during the quarter. There was
no pending compliant either at the beginning or end of the quarter. 4. The
company has received Rs.4.187 millions towards application money on Convertible
warrants to be allotted to the promoters on preferential basis. 5. The above
results have been reviewed by the Audit committee and taken on record by the
board of directors of directors in their meeting held on 28th October 2006. 6.
The statutory auditors have been carried out Limited Review of the results for
the quarter ended 30th September 2006. 7. The previous periods figures have
been regrouped / recasted, wherever necessary to make them comparable with the
current periods figures.
200612 Quarter 3
Notes
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 Nil Complaints disposed off during the quarter Nil
Complaints unresolved at the end of the quarter Nil 1.The Company is engaged in
a single primary business segment viz. ''Medical Disposables''. 2. The
Expansion Projects at
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.65
|
0.74 |
0.62 |
|
Long Term Debt-Equity Ratio |
0.60
|
0.65 |
0.56 |
|
Current Ratio |
1.36
|
1.34 |
1.40 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.65
|
1.83 |
1.97 |
|
Inventory |
9.21
|
9.37 |
10.30 |
|
Debtors |
9.82
|
10.65 |
8.21 |
|
Interest Cover Ratio |
4.77
|
4.77 |
5.13 |
|
Operating Profit Margin(%) |
19.77
|
18.96 |
19.22 |
|
Profit Before Interest And Tax Margin(%) |
15.03
|
14.88 |
15.69 |
|
Cash Profit Margin(%) |
14.75
|
13.42 |
12.37 |
|
Adjusted Net Profit Margin(%) |
10.01
|
9.35 |
8.84 |
|
Return On Capital Employed(%) |
26.31
|
28.82 |
32.37 |
|
Return On Net Worth(%) |
28.85
|
31.48 |
29.50 |
STOCK PRICES
|
Face Value |
Rs. 10.00 |
|
High |
Rs. 134.90 |
|
Low |
Rs. 133.50 |
LOCAL
AGENCY FURTHER INFORMATION
Promoted by Shree J K Baid, Shree Himanshu Baid,
Shree B R Mehta, Shree Rishi Baid, subject was incorporated on 30th
Mar.'95.
The Company is in the process of setting up of the project for the
manufacturing of disposable blood bags, I V cannula, Endotracheal Tubes, cold
Therapy pads and common disposables. The company has come out with a public
issue of 22,50,000 equity shares in Mar.'96.
The company has entered into the collaboration
with Martech Medical Products and Cold Ice Inc. of
Company has started commercial production by April' 97 with an installed
capacity of Medical Disposables (16500000 Nos) and Cold/Hot Therapy Packs
(500000 Nos).
During the year 1997-98, the company produced 5.106 millions nos. of Medical
Disposables which constitute 42.60% of the installed capacity utilisation. The
company exported its products of the value Rs. 5.028 millions. The company has
been assessed and registered as an ISO 9002 company by SGS Yarsley
International Certification Service Limited,
The export turnover for the financial year 1999-2000, was Rs.60.600 millions as
compared to Rs.30.850 millions in the previous year.
Operation:
During the year under review, Company has been able to
achieve net sales of Rs. 704.300 millions as compared to Rs. 637.100 millions
for the previous financial year ended 31st March 2005 showing an increase of
10.55%. This has been achieved despite the effect that the selling prices
remained under pressure due to stiff global competition and appreciation of
Rupee against US dollar. Despite pressure on realizations the Company was able
to improve the net profit due to higher volumes. The Profit before Tax rose to
Rs.85.200 millions as against Rs.76.500 millions recording an increase of
11.37%. The Profit after Tax was Rs.71.800 millions as against Rs. 60.800
millions showing an increase of 18.09%.
The Exports for the year ended 31st March, 2006 amount to Rs. 603.700 millions
representing 84.4% of total sales as against Rs.563.500 millions representing
86.3% of the total sales for the year ended 31st March 2005.
Future
Outlook:
The operations of year 2006-07 are likely to benefit from
the enhancement of production capacities. With this increased production
capacity, the future outlook of the Company is reasonably positive. However,
the profitability is dependent on the competition in the domestic and export
market, exchange rate fluctuations and overall economic development globally.
Expansion Programme
The Company has successfully completed the Expansion Project
of Blood Bags during the last quarter of Financial Year 2005-06. The expansion
project for enhancement of the capacity of I.V. Cannula and for the plant for manufacturing
of Needles is progressing well and is likely to be completed by third and forth
quarters respectively in the current Financial Year.
The Company has also initiated action for implementation of a new project at
Acquisition of US
Company
The Company is in the process of acquiring 75% stake in a
US- based Company in related field against which the Company has already made
an investment of USD 300,000. This will give the Company increased access to
the
Fixed Assets :
Ø
Ø Building
Ø Plant & Machinery
Ø Furniture & Fixture
Ø Office Equipment
Ø Vehicles
Ø Capital Work in Progress
Ø Building
(Including capital advances Rs. NIL,
previous year Rs. 3119 thousand)
Ø Plant and Machinery
(Including
capital advances Rs. 5129 thousand, previous year Rs. 1719 thousand)
AS PER WBSITE
Company history and
profile
Subject was conceived and established by a group of making
the benefit of modern healthcare available to the mankind at affordable price.
This unique philosophy has been the driving force behind the company since
its inception in 1995. Today it has grown into one of the most dynamically
versatile manufacturers of disposable healthcare products in the region with
over 40 different products.
Modern
production facilities and processes
Subject manufactures its products using state of the
art technology in ultra modern factories covering over 100000 square feet of
manufacturing floor space with about 10,000 square feet of clean rooms of
class 100,000 to class 100. A tool room with modern facilities & CNC
machine supports the production processes. A high degree of automation and an
effective process control help in complying with GMP requirements.
Highly
trained and experienced personnel
Subject's main strength is its fully committed, well
trained and technically competent personnel. A highly qualified, experienced
and motivated management provides guidance and support to the team of over 500
people employed in different activities to factory operations are round to
clock.
Quality assurance
Subject's quality assurance system encompasses a
comprehensive and exhaustive series of visual, physical, chemical and
biological & microbiological tests and inspection at different stages in
the production cycle. Beginning with constant surveillance of raw materials of
raw materials and ist suppliers; intensive in-process control of all
manufactured components & sub-assemblies to the final inspection &
testing of the finished products. The systems are well documented and the
adherences to quality norms meticulous. POLYMED has successfully
implemented a quality management system and has been accredited by SGS Yarsley International
Certification Services,
Innovation and continues
improvement
To keep pace with the ever changing requirements of
the market, Subject has a fully staffed and highly equipped R & D section
to design and develop new and innovative products. Using the latest CAD /
Infusion
Therapy Product
Ø
I.V.
Cannulae 1001-1005, 1007,1018-19-22
Ø
Three
Way Stop Cock –1006
Ø
Three
Way Stop Cock Hp-1020
Ø
Stop
cock with Ext. Tube- 1008A, 1008 B
Ø
I.V.
Infusion Sets- 1009,1013,1014,1017
Ø
Flow
Regulator – 1011
Ø
Obturator
– 1015
Ø
Extension
Tube (High Pressure)- 1012 H
Ø
Extension
Tube (Low Pressure) – 1012 L
Ø
Polyvol
Burette Set – 1016
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.41.34 |
|
|
1 |
Rs.81.81 |
|
Euro |
1 |
Rs.55.74 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT
LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This
score serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment record (10%)
Credit history (10%) Market trend (10%) Operational
size (10%)
RATING
EXPLANATIONS
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the
strongest capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy.
General unfavourable factors will not cause fatal effect. Satisfactory
capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet
normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight
in credit consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal
sums in default or expected to be in default upon maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be
exercised |
Credit not recommended |