MIRA
INFORM REPORT
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Report Date : |
12.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
MARPOL PRIVATE LIMITED |
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Registered Office : |
Panandiker Chambers, 2nd Floor, M. L. Furtado Road, Margaon
– 403 601, Goa |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
05.04.1983 |
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Com. Reg. No.: |
24-532 |
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CIN No.: [Company
Identification No.] |
U24222GA1983PLC000532 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRM07271F |
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PAN No.: [Permanent
Account No.] |
AACCM2018D |
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Legal Form : |
Private Limited Liability company. |
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Line of Business : |
Manufacturers and Marketers of Powder Coatings and Polyester Resins. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 380000 |
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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 engaged in manufacturing and
selling of Powder Coatings of various Finishers, Shades and Gloss Levels. The
company’s business is growing satisfactorily. Trade relations are reported as fair. Payments are usually correct and
as per commitments. It can be considered normal for business dealings at usual trade terms
and conditions. |
LOCATIONS
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Registered Office / Head Office : |
Panandiker Chambers, 2nd Floor, M. L. Furtado Road, Margaon
– 403 601, Goa, India |
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Tel. No.: |
91-8342-2732045/2711165/2736880/2730880 |
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Fax No.: |
91-8342-2733124 |
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E-Mail : |
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Website : |
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Factory : |
Plot 13-18 & Plot Nos. A, B, C, GIDC Industrial Estate, Kakoda, Goa – 403 706 |
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Tel. No.: |
91-832-2650749/2652167/2652168/2652169/2651382 |
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Fax No.: |
91-832-2651382 |
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E-Mail : |
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Technology
Centre : |
L-79, Phase II D, Verna Industrial Estate,
Verna, Goa - 403 722 - India |
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Tel. No.: |
0832-2782135/ 2782136/ 2782178 |
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Fax No.: |
0832-2782133 |
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Branches : |
Located at:-
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DIRECTORS
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Name : |
Dr. Vishwanath A. Pai Panandiker |
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Designation : |
Director |
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Address : |
H. No. 262, Dando, Margao, Goa – 403 601 |
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Date of Birth/Age : |
24.03.1934 |
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Date of Appointment : |
05.04.1983 |
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Name : |
Mr. Shanu A. Pai Panandiker |
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Designation : |
Director |
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Address : |
H. No. 262, Dando, Margao, Goa – 403 601 |
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Date of Birth/Age : |
25.05.1937 |
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Date of Appointment : |
05.04.1983 |
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Name : |
Mr. Ramchandra A. Pai Panandiker |
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Designation : |
Director |
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Address : |
H. No. 262, Dando, Margao, Goa – 403 601 |
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Date of Birth/Age : |
24.04.1929 |
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Date of Appointment : |
05.04.1983 |
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Date of Ceasing : |
19.12.2003 |
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Name : |
Mr. Shambhu A. Pai Panandiker |
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Designation : |
Director |
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Address : |
H. No. 262, Dando, Margao, Goa – 403 601 |
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Date of Birth/Age : |
31.05.1932 |
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Date of Appointment : |
20.05.1983 |
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Date of Ceasing : |
30.08.2005 |
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Name : |
Mr. Kamlesh A. Pai Panandiker |
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Designation : |
Director |
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Address : |
H. No. 262, Dando, Margao, Goa – 403 601 |
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Date of Birth/Age : |
21.06.1939 |
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Date of Appointment : |
20.05.1983 |
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Name : |
Mr. Rohan A. Pai Panandiker |
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Designation : |
Director |
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Address : |
H. No. 262, Dando, Margao, Goa – 403 601 |
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Date of Birth/Age : |
22.04.1937 |
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Date of Appointment : |
27.09.2004 |
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Name : |
Mr. Atmaram X Poi Panandiker (deceased) |
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Designation : |
Director |
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Address : |
H. No. 262, Dando, Margao, Goa – 403 601 |
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Date of Birth/Age : |
07.06.1902 |
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Date of Appointment : |
05.04.1983 |
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Date of Ceasing : |
13.12.2003 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Shanu A. Pai Panandiker |
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55200 |
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Shambu A. Pai Panandiker |
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54000 |
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Kamlesh A. Pai Panandiker |
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54000 |
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Dr. Vishwanath Pai Panandiker |
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54000 |
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Ramachandra A. Pai Panandiker (HUF) |
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268800 |
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Shanu A. Pai Panandiker (HUF) |
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268800 |
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Dr. Vishwanath Pai Panandiker (HUF) |
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360000 |
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Kamlesh A. Pai Panandiker (HUF) |
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399200 |
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Shambu A. Pai Panandiker (HUF) |
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270000 |
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Rohan A. Pai Panandiker |
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25800 |
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Rohit R. Panandiker |
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25800 |
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Ravi V Panandiker |
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12000 |
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Rahool S. Panandiker |
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12000 |
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Raj S. Panandiker |
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12000 |
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Manisha V. Panandiker |
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12000 |
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Ramchandra A. Pai Palondicar Trading and Investment Company Private
Limited |
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198000 |
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Vishwanath A. Pai Panandiker Trading and Investment Company Private
Limited |
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259200 |
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Shanu A. Pai Panandiker Trading and Investment Company Private Limited
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198000 |
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Veda Pai Panandiker Trading and Investment Company Private Limited |
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242400 |
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Directors or relatives of directors |
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19.52 |
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Others |
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80.48 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Marketers of Powder Coatings and Polyester Resins. |
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Products : |
·
Chemistries ·
Finishes ·
Shades ·
Gloss Levels ·
Insulation Coatings for Capacitors ·
Exterior Durable Sparkle-Effect Finishes ·
Antique Finishes ·
Copper/Silver Vein Finishes ·
Pure Epoxy ·
Pure Polyester ·
Epoxy Polyester |
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Imports : |
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Products : |
Raw Materials |
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Countries : |
Japan |
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Terms : |
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Purchasing : |
L/C, D/A and D/P terms |
PRODUCTION STATUS
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Particulars |
Unit |
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Installed
Capacity |
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Unit – I |
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Powder Coating |
MT |
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1200.00 |
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Polyester Resin |
MT |
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912 |
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Unit – II |
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Powder Coating |
MT |
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3600.00 |
GENERAL
INFORMATION
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Suppliers : |
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No. of Employees : |
About 150 |
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Bankers : |
·
Goa Urban Co-operative Bank Margao, Goa – 403 601 ·
Goa Urban Co-operative Bank Margao, Goa – 403 601 ·
Canara Bank Margao, Goa |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Ganesh and Ganesh Chartered Accountant |
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Address : |
G – 7, Vaikunth Apartment, P. O. Box 49, Comba, Margao – 403601, Goa |
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Associates/Subsidiaries : |
Panadiker Research and Development Private Limited |
CAPITAL STRUCTURE
As on 30.09.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 50.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
42,03,604 |
Equity Shares |
Rs. 10/- each |
Rs. 42.036
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 |
39.936 |
29.952 |
29.937 |
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2] Share Application Money |
0.000 |
0.000 |
0.010 |
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3] Reserves & Surplus |
55.905 |
51.028 |
46.915 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
95.841 |
80.980 |
76.862 |
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LOAN FUNDS |
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1] Secured Loans |
197.964 |
175.763 |
101.604 |
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2] Unsecured Loans |
55.497 |
57.300 |
43.942 |
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TOTAL BORROWING |
253.461 |
233.063 |
145.546 |
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DEFERRED TAX LIABILITIES |
14.034 |
14.167 |
12.025 |
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TOTAL |
363.336 |
328.210 |
234.433 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
154.681 |
131.521 |
79.395 |
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Capital work-in-progress |
4.532 |
1.609 |
14.355 |
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INVESTMENT |
2.040 |
1.649 |
1.626 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
74.170
|
97.925 |
50.511 |
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Sundry Debtors |
112.316
|
111.141 |
96.432 |
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Cash & Bank Balances |
21.517
|
12.210 |
16.317 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
66.070
|
56.703 |
47.995 |
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Total
Current Assets |
274.073
|
277.979 |
211.255 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
65.297
|
75.792 |
59.636 |
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Provisions |
7.168
|
9.310 |
12.562 |
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Total
Current Liabilities |
72.465
|
85.102 |
72.198 |
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Net Current Assets |
201.608
|
192.877 |
139.057 |
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MISCELLANEOUS EXPENSES |
0.475 |
0.554 |
0.000 |
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TOTAL |
363.336 |
328.210 |
234.433 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
511.782 |
367.531 |
309.003 |
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Other Income |
17.563 |
11.045 |
10.324 |
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Total Income |
529.345 |
378.576 |
319.327 |
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Profit/(Loss) Before Tax |
13.502 |
10.481 |
12.136 |
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Provision for Taxation |
1.928 |
2.989 |
2.048 |
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Profit/(Loss) After Tax |
11.574 |
7.492 |
10.088 |
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Earnings in Foreign Currency : |
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Total Earnings |
NA |
NA |
13.941 |
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Imports : |
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Raw Materials |
NA |
NA |
71.523 |
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Stores & Spares |
NA |
NA |
1.191 |
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Capital Goods |
NA |
NA |
0.863 |
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Total Imports |
NA |
NA |
73.577 |
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Expenditures : |
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Manufacturing Expenses |
0.000 |
0.000 |
216.928 |
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Personnel Expenses |
0.000 |
0.000 |
23.029 |
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Administrative Expenses |
0.000 |
0.000 |
18.171 |
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Raw Material Consumed |
321.587 |
255.645 |
0.000 |
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Consumption of stores and spares parts |
8.759 |
6.217 |
0.000 |
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Increase/(Decrease) in Finished Goods |
11.239 |
[36.352] |
[4.277] |
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Salaries, Wages, Bonus, etc. |
26.734 |
23.628 |
0.000 |
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Managerial Remuneration |
6.070 |
4.530 |
0.000 |
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Payment to Auditors |
0.175 |
0.216 |
0.000 |
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Interest |
24.235 |
16.942 |
0.000 |
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Insurance Expenses |
0.888 |
0.836 |
14.094 |
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Power & Fuel |
12.939 |
9.034 |
0.000 |
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Depreciation & Amortization |
12.555 |
10.560 |
6.929 |
|
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Other Expenditure |
90.662 |
76.839 |
32.211 |
|
Total Expenditure |
515.843 |
368.095 |
307.085 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
2.19
|
1.98 |
3.16 |
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Net Profit Margin (PBT/Sales) |
(%) |
2.64
|
2.85 |
3.93 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
3.15
|
2.56 |
4.18 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.13 |
0.16 |
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Debt Equity Ratio (Total Liability/Networth) |
|
3.40
|
3.93 |
2.83 |
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Current Ratio (Current Asset/Current Liability) |
|
3.78
|
3.27 |
2.93 |
LOCAL AGENCY
FURTHER INFORMATION
Bankers Charges
Report as per Registry
|
Name of the company |
MARPOL PRIVATE
LIMITED |
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Presented By |
Shanu Pai
Panandiker, Managing Director |
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1) Date and description of instrument creating the change |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 3.200
Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation of
Buss Powder Coating Extruder PLK 70 purchased under above finance. Continuation of
existing charge on : -
Lease hold
and situated on plot no 16, 17, 18 at kakoda Industrial Estate Goa and
building thereon. -
Lease hold
land and shed / building situated on plot no 12 at Kakoda Industrial estate
Kakoda Goa -
Buss Powder
Coating Extruder PCS – 70 – 8 L/ D -
Office
Premises at 2nd Floor of Panandiker Chambers, Margao Goa -
Office
Premises at Park Plaza, Taskar Town, Bangalore -
Office
Equipments, lab equipments, Computers, machinery, furniture and fixture etc,
financed under earlier term loans from Goa Urban Co-operative Bank Limited |
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4) Gist of the terms and conditions and extent and operation of the charge. |
-
In
consideration of the said loan the company to hypothecate buss powder Coating
Extruder purchased under above finance -
The
said loan of Rs. 3.200 Millions to be
repaid by the company in 60 installments of Rs. 0.067 Millions each, the
first, payable on or before the 24th of December 2005, the other
installments payable by a regular interval of one month thereafter together
with interest then due and the last installment payable on or before 24th
November 2010 -
The said
loan to carry on interest of 9.5 % p.a. or such rate or rates as may from
time to time be fixed by the bank, Provided that the interest payable shall
be subject to changes in interest rates made by the Reserve Bank of India
from time to time. |
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5) Name and Address and description of the person entitled to the charge. |
The Goa Urban
Co-operative Bank Limited, Margao, Goa |
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6) Date and brief description of instrument modifying the charge |
-- |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
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This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
U24222GA1983PLC000532 |
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Name of the
company |
MARPOL PRIVATE LIMITED |
|
Address of the registered
office or of the principal place of
business in India of the company |
Panandiker Chambers, 2nd Floor, M. L. Furtado Road, Margaon
– 403 601, Goa |
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Type of charge |
|
|
Particular of charge
holder |
The Goa Urban
Co-operative Bank Limited, Margao, Goa |
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Nature of
description of the instrument creating or modifying the charge |
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|
Date of
instrument Creating the charge |
03.10.2006 |
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Amount secured by
the charge |
Rs. 9.897
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest 11.5 % and penal
interest @ 2 % p.a. at monthly rest. Terms of
repayment 72 Monthly
instilments of Rs. 0.191 Millions of which the first shall be repayable on or
before 03.04.2007 Extent operation
of the charge To be paid before
2012 |
|
Short particulars
of the property charged |
|
FIXED ASSETS
- Leasehold
Land
- Factory
Building
- Plant and
Machinery
- Electrical
Installations
- Office
Premises
- Office
Equipments
- Laboratory
Equipments
- Furniture and
Fixture
- Vehicles
AS PER WEBSITE
Profile
Subject is the flagship of the Panandiker Group of Industries and one of
the leading manufacturers of powder coatings in India. Established in 1986,
Marpol has gone from strength to strength by consistently offering quality
products meeting the varied needs of their customers.
During the past 20 years, they have commercialized over 1300 shades.
Using sophisticated software, they have evolved the capability to customize any
shade required by their customers, using colour standards such as
IS/RAL/PANTONE.
They are among the few powder coating companies in the world that have
integrated backwards to manufacture Polyester Resins, the main ingredient in
Powder Coatings.
Marpol caters to OEMs in all industry segments where powder coatings are
used. They have a nationwide distribution network of 3 Regional Offices and 35
channel partners, coupled with a 30 strong sales and technical staff that gives
the customer the confidence of a reduced lead time.
Subject strive to consistently deliver cost-effective and high quality
solutions. They combine their people, processes and technology to help cut
costs while maintaining the grade of their powder coatings.
Subject’s biggest strengths are quality and flexibility in quantity
which is possible because of its technology and constant R&D activity. In
2001, Marpol set up a separate R&D centre to focus on new technologies and
maintain its technological advantage.
Subject has recently commissioned its 3rd manufacturing facility.
Located in North India, its proximity to one of India’s largest industrial
belts leverages Marpol’s production flexibility and delivery advantage.
With manufacturers of almost everything from white goods to cladding,
furniture to electrical control panels, appliances to glass bottles shifting to
powder coating and with an installed capacity of more than 4800MT per annum,
Marpol is set for a quantum leap.
Team
At Marpol, they believe people are their greatest asset.
Their pool of talented, motivated and committed professionals bring a high
level of performance to the Marpol Team. Their top management consists of
eminent industrialists and experts who lead the organization with their foresight
and collective wisdom.
Dr. V A Pai Panandiker,
Executive Chairman
Dr. Panandiker was founder and president of India's leading
Think Tank, the Centre for Policy Research, besides having held a number of
critical government positions. He has been the visionary and source of
inspiration in the creation and growth of Marpol. He is advisor to a number of
top corporate houses and academic institutions. Dr. Panandiker holds a PhD in
Public Administration from University of Michigan, Ann Arbor, USA.
Mr. S A Pai Panandiker,
Managing Director
Their managing director holds a masters degree in economics
from the University of Bombay and brings a thorough understanding of the Indian
business environment to the organization. He has been instrumental in making
Marpol one of the leading powder coating companies in India over two decades
and has built the management culture of Marpol on the strong foundation of
ethical and moral values.
Mr. Kamlesh A Pai Panandiker,
Technical Director
Mr. Kamlesh Panandiker is the technological powerhouse
behind Marpol and brings over 30 years of top grade experience in resins and
powder coatings to the organization. He has held positions with Allied
Chemicals, Cargil and McWhorter Technologies in the United States and holds 6
registered patents in Polymer Resins. His technological expertise has put
Marpol onto the innovation track.
Mr. E. Venugopal, Vice
President - Marketing
Mr. Venugopal is a chemistry graduate with 25 years of
experience in industrial sales and marketing. His areas of exposure include
powder coating, paints and industrial tools. He has held key positions in
various reputed organisations in these industries with a proven track record.
Mr. N. Raghuraman, General
Manager -Coordination
A postgraduate in chemistry, Mr. Raghuraman has been in the academic field for a few years before moving to industry wherein he has to his credit 35 years of experience in the field of manufacturing.
Milestones
1986 Commenced operations as a small scale industry. Initial capacity: 180 TPA for Saturated Polyester Resins; 420 TPA in Powder Coating
1991 New Powder Coating Plant added. Total capacity: 720 TPA
1994 R & D Division set up
1995 Debottlenecking of Powder Coating Plant. Total capacity: 1200 TPA
1996 Sales Offices set up at Delhi and Mumbai
1997 Sales Office set up at Bangalore
1998 Debottlenecking of Resin Plant. Capacity: 500 TPA
2000 Expansion of Powder Coating capacity to 4800 TPA
2002 Expansion of Resin Plant capacity to 1600 TPA
2003 Expansion of Resin Plant capacity to 1600 TPA
2004 Addition of new Powder Coating plant in North India with 1200 TPA capacity
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 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.39.35 |
|
UK Pound |
1 |
Rs.80.52 |
|
Euro |
1 |
Rs.57.56 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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. |
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 |
|