MIRA
INFORM REPORT
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Report Date : |
01.08.2008 |
IDENTIFICATION
DETAILS
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Name : |
LAFFANS PETROCHEMICALS LIMITED |
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Registered Office : |
Plot No. 321, G.I.D.C, Panoli, Taluka Ankeleshwar, District,
Bharuch-394116, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
27.11.1992 |
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Com. Reg. No.: |
18626 |
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CIN No.: [Company
Identification No.] |
L99999GJ1992PLC018626 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUML01777G |
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Legal Form : |
Public Limited Liability Company. The Company’s shares are listed on
Stock Exchange. |
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Line of Business : |
Manufacturers of petrochemical derivates for supply to the paint and
automobile industries. |
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 1600000 |
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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 and reputed company meeting its normal
commitments timeously. Trade relations are fair. Business is active. General financial
position is good. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
Plot No. 321, G.I.D.C, Panoli, Taluka Ankeleshwar, District,
Bharuch-394116, Gujarat, India |
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E-Mail : |
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Website : |
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Corporate Office/ Head Office/Factory : |
10, Luthra Industrial Premises, Ground Floor, Andheri Kurla Road,
Safeed Pool, Mumbai-400072, Maharashtra, India |
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Tel. No.: |
91-22-28511918/ 28512929/ 28518862 |
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Fax No.: |
91-22-28513186 |
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E-Mail : |
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Branch Office: |
New Delhi 17, Eastern Avenue, Maharani Bagh, New Delhi-110065, India |
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Tel. No.: |
91-11-6927497/ 98 |
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Fax No.: |
91-11-6924772 |
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E-Mail : |
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Branch Office: |
Ahmedabad Sumeru Complex, Opposite Sadhana High School, Paldi, Ahmedabad-380007,
India |
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Tel. No.: |
91-79-6578464 |
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Fax No.: |
91-79-6579098 |
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E-Mail : |
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Branch Office: |
Kolkata 7/1A, Grant Lane, Shyam Chambers, 2nd Floor,
Kolkata-700012, West Bengal, India |
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Tel. No.: |
91-33-2346264/ 6268/ 8429 |
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E-Mail : |
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Branch Office: |
Silvassa Godown No. 234/ 2, Survey No. 16/3, Opposite Om Hospital, Mastali
Road, Vill Samarvarni, Silvassa-396230, India |
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Tel. No.: |
91-260-640279 |
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Branches : |
Bangalore Solvents and Chemicals Company, Somu Centre, 20, Mriehbe Society, 29th
Main, 1st Phase, 2nd stage, B.T.M Layout,
Bangalore-560076, Karnataka, India |
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Tel. No.: |
91-80-6785381/ 82 |
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E-Mail : |
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Branch Office: |
Securandabad Plot No. 10, Panchavathi Colony, Behind Sub-Registrar Office, Tarbund
Secundarabad-500009, India |
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Tel. No.: |
91-40-7751104/ 4382 |
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E-Mail : |
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Branch Office: |
Chennai Aniket Associates,13, Maddox Street, Choolai, Chennai-600112,
Tamilnadu, India |
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Tel. No.: |
91-44-5325050/ 5325142 |
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Fax No.: |
91-44-5325142 |
DIRECTORS
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Name : |
Mr. Prem Seth |
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Designation : |
Chairman (Honarary) and
Director |
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Name : |
Mr. Sandeep Seth |
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Designation : |
Managing Director |
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Name : |
Mr. Sanjay Seth |
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Designation : |
Director |
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Name : |
Mr. Ambalal C Patel |
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Designation : |
Director |
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Name : |
Mr. Nivedan Bhardwaj |
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Designation : |
Dirctor |
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Name : |
Mr. P. P Joshi |
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Designation : |
Director- Operations |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter, Relatives and Associates |
3892459 |
48.65 |
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Public |
3121747 |
39.02 |
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NRI/ FII/ OCBs |
22638 |
0.29 |
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FIs / MFs |
11700 |
0.15 |
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Body Corporate |
940250 |
11.75 |
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Others – Clearing memebers |
11206 |
0.14 |
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Total |
8000000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of petrochemical derivates for supply to the paint and
automobile industries. |
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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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Ethoxyhlates |
MT |
10000 |
10000 |
179639.672 |
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Glycol Ethers |
MT |
-- |
-- |
5186.857 |
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Ether Phenol |
MT |
-- |
-- |
70.924 |
GENERAL
INFORMATION
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Suppliers : |
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Customers : |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. M Kapoor and Company Chartered Accountant |
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Associates/Subsidiaries : |
Laffans India Limited |
CAPITAL STRUCTURE
As on 31.03.2007
(12 Months)
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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8000000 |
Equity Shares |
Rs. 10/- each |
Rs. 80.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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8000000 |
Equity Shares |
Rs. 10/- each |
Rs. 80.000 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
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SOURCES OF FUNDS |
31.03.2007 ( 12 Months) |
30.09.2006 ( 18 Months) |
30.09.2004 (12 Months) |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
80.000 |
80.000 |
80.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
255.073 |
222.477 |
184.600 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
335.073 |
302.477 |
264.600 |
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LOAN FUNDS |
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1] Secured Loans |
91.834 |
9.683 |
3.500 |
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2] Unsecured Loans |
110.085 |
73.098 |
70.200 |
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TOTAL BORROWING |
201.919 |
82.781 |
73.700 |
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DEFERRED TAX LIABILITIES |
27.849 |
30.852 |
0.000 |
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TOTAL |
564.841 |
416.110 |
338.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
174.916 |
157.346 |
149.300 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
1.189 |
1.189 |
0.800 |
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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 |
99.582
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19.718 |
27.900 |
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Sundry Debtors |
361.838
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272.416 |
207.600 |
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Cash & Bank Balances |
8.371
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17.805 |
35.300 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
64.416
|
57.241 |
59.400 |
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Total
Current Assets |
534.207
|
367.180 |
330.200 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
124.971
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73.930 |
100.900 |
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Provisions |
20.500
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35.675 |
41.500 |
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Total
Current Liabilities |
145.471
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109.605 |
142.400 |
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Net Current Assets |
388.736
|
257.575 |
187.800 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.400 |
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TOTAL |
564.841 |
416.110 |
338.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 ( 12 Months) |
30.09.2006 ( 18 Months) |
30.09.2004 (12 Months) |
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Sales Turnover |
1424.056 |
1780.832 |
1074.200 |
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Other Income |
9.268 |
7.994 |
4.700 |
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Total Income |
1433.324 |
1788.826 |
1078.900 |
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Profit/(Loss) Before Tax |
50.822 |
68.463 |
32.200 |
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Provision for Taxation |
17.497 |
31.679 |
11.700 |
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Profit/(Loss) After Tax |
33.325 |
36.784 |
20.500 |
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Expenditures : |
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Manufacturing Expenses |
1336.236 |
1632.701 |
70.200 |
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Raw Materials |
0.000 |
0.000 |
714.000 |
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Excise Duty |
0.000 |
0.000 |
146.000 |
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Power and Fuel Cost |
0.000 |
0.000 |
44.400 |
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Employees Expenses |
15.369 |
15.417 |
9.000 |
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Administrative Expenses |
32.311 |
45.289 |
52.900 |
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Miscellaneous Expenses |
0.000 |
0.000 |
1.500 |
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Finance Expenses |
11.953 |
8.547 |
1.800 |
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Increase/(Decrease) in Finished Goods |
[25.931] |
0.867 |
[4.000] |
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Depreciation & Amortization |
12.564 |
17.540 |
10.800 |
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Total Expenditure |
1382.502 |
1720.361 |
1046.600 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
31.03.2008 4th
Quarter |
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Sales Turnover |
418.800 |
448.300 |
409.900 |
479.000 |
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Other Income |
2.600 |
0.800 |
1.600 |
3.400 |
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Total Income |
421.400 |
449.100 |
411.500 |
482.400 |
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Total Expenditure |
399.700 |
424.900 |
387.000 |
460.200 |
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Operating Profit |
21.700 |
24.200 |
24.500 |
22.200 |
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Interest |
6.900 |
7.700 |
7.500 |
11.800 |
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Gross Profit |
14.800 |
16.500 |
17.000 |
10.400 |
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Depreciation |
3.200 |
3.900 |
3.900 |
3.400 |
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Tax |
1.400 |
4.600 |
3.200 |
6.000 |
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Reported PAT |
10.200 |
8.000 |
9.700 |
1.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 ( 12 Months) |
30.09.2006 ( 18 Months) |
30.09.2004 (12 Months) |
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Debt-Equity Ratio |
0.45 |
0.28 |
0.30 |
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Long Term Debt-Equity Ratio |
0.22 |
0.26 |
0.29 |
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Current Ratio |
1.95 |
2.36 |
2.30 |
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TURNOVER RATIOS |
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Fixed Assets |
6.69 |
6.27 |
5.06 |
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Inventory |
28.63 |
60.02 |
48.94 |
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Debtors |
5.39 |
5.95 |
5.45 |
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Interest Cover Ratio |
5.23 |
9.06 |
18.89 |
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Operating Profit Margin(%) |
4.41 |
4.41 |
4.17 |
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Profit Before Interest And Tax Margin(%) |
3.68 |
3.59 |
3.17 |
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Cash Profit Margin(%) |
2.69 |
2.53 |
2.91 |
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Adjusted Net Profit Margin(%) |
1.95 |
1.72 |
1.91 |
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Return On Capital Employed(%) |
13.62 |
14.20 |
10.35 |
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Return On Net Worth(%) |
10.45 |
8.65 |
8.06 |
LOCAL AGENCY FURTHER
INFORMATION
HISTORY
A recent entrant in the petrochemical industry, subject
manufactures petrochemical derivatives for supply to the paint and automobile
industries. Its product range includes speciality chemicals like surfactants (based
on fatty alcohol), solvents (like glycol ethers), amines (like ethanol amines),
polyethylene glycols, etc. To manufacture these petro products, which are
termed ethylene oxide derivatives, a plant has been set up with technical
assistance from Reliance Industries. It has a locational advantage since the
site at Panoli, Ankleshwar, is about 60 km from Reliance and 70 km from IPCL.
Both these supply it with ethylene oxide, its basic raw material.
In October 1993, it commenced commercial production and started supplying
glycol ether and ethoxylate. The glycol ether capacity is being expanded to
10,000 tpa. The company came out with a public issue in March '94 for the
purpose. It was set up with a total investment of Rs 100 millions. It is the
only supplier of butyl carbitol and acetates, which were being imported by all
the paint companies in India.
Its products are sold under the Laffcols brand. They find application in
the adhesives, ceramics, cosmetics, leather processing, pharmaceutical, textiles,
inks, paints, lubricants and paper industries.
The Company recently tied up with Altachem, Belgium, to manufacture building
chemicals. This collaboration involves technology transfer and investments by
the foreign partner. They have agreed to take an equity stake in the Company.
The company has tied up with Akzo Nobel, Sweden, to manufacture petrochemical
products in India to meet part of their global requirements. This
collaboration, too, involves technology transfer and investments by the Akzo group.
In 1995-96, company came out with an expansion plan to expand its Glycol
Ether capacity to 10000 MTPA with an investment outlay of Rs. 80 millions to be
funded with institutional loan components of Rs. 60 millions and internal
generation of Rs. 20 millions without any addition to Equity.
The Company has achieved the ISO 9002 Standard for its multipurpose
Glycol Ether/Ethoxylation unit.
OPERATIONS:
The company has achieved, a net of excise, turnover of Rs.1707.915
Millions as compared to Rs.2142.730 Millions for previous 18 months period
resulting in annualized growth of 19.56%. The profit before tax for the year
stood at Rs.50.822 Millions as compared to Rs.68.463 Millions for the previous
18 months period resulting in annualized growth of 11.43%.
MANAGEMENT
DISCUSSION AND ANALYSIS
During
the year the company remained committed to maximizing its synergies and
enhancing the corporate and product awareness which indirectly enhance the
share holder value.
Turnover for 2006-07 (12 months) was Rs.1707.915 Millions, as compared to
Rs.2142.730 Millions for the previous 18 months, both net of Excise Duty and
sales tax. The turnover for the previous 18 months period is shown net of
Excise Duty to be in line with current year figures.
Profit before tax for the current year was Rs.50.822 Millions as compared
to Rs.68.463 Millions for previous 18 months period. The current ratio is 3.67
which compares very favourably with the Industry norms.
The capital gearing ratio of the company during the current year was 0.60
which remain well ahead of the industry average.
The company will strive to improve upon the profitability and its
contribution to the nation building by enhancing the overall operating
efficiency and improving the share holder value.
Notes on Accounts:
Contingent Liabilities:
i)
Excise Duty Rs. 0.075 Million ( P.Y. Rs. 0.075 Million) for which appeal
is pending.
ii)
Letter of Credit Rs. 3.067 Millions and Letter of Guarantee Rs. 3.087
Millions
Working Capital From Indian Overseas Bank, Indian Bank and Punjab
National Bank
i)
Secured against hypothecation of stocks of raw materials, packing
materials, in process goods, finished goods, consumables, Stores and spares,
Book Debts and other current assets to the extent of Rs. 126.000 Millions as
fund based and non fund based Rs. 85.500 Millions secured against document of
title of goods and counter indemnity of the company.
ii)
Personal Guarantee of Executive Director
iii)
Collateral Security by way of second charge on the fixed asets of the
company at plot no. 321 Panoli, G.I.D.C , Taluka Ankleshwar, District, Bharuch,
Gujarat
Sales Tax Deferment Loan Account :
Outstanding as on 31.03.2007 Rs. 12.552 Millions and Rs. 49.236 Millions in
Sales Tax Diversification.
Fixed Assets:
- Leasehold
Land
- Building
- Computers
- Plant and
Machinery
- Office
Equipments
- Electrical
Fittings
- Furniture and
Fixture
- Motor Car
- Motor Lories
AS PER WEBSITE
Profile:
Subject (an ISO 9001 - 2000Company) set
up in 1994 to manufacture ethylene oxide derivatives such as Ethoxylates,
Propoxylates, Glycol Ethers, Acetates, Ethanol Amine, and Brake fluids is
located in Ankleshwar, Gujarat. Subsequently it entered into technical
collaboration with AKZO Nobel for textiles spin finishes
The plant set up under technical assistance of Reliance
Industries Limited is in proximity to E.O supply from Reliance, Hazira. This
ensures uninterrupted supply of its basic feedstock which cannot be imported
due to its hazardous nature. LPL maintains its own fleet of specially
fabricated E.O tankers, and is currently the largest buyer of Ethylene Oxide in
the Country.
The unit has commissioned India's largest loop reactor with
state - of the - art - controlled system from ROSE MOUNT for consistent quality,
This ensures a faster reaction rate and minimum residence time of un reacted
EO, which results in high purity ethoxylates with low color, odor and
aldehides. The minimum free EO and Dioxane content eliminates interface in the
subsequent application.
This multipurpose unit is geared to produce Polyethylene
Glycols and EO condensates of Alkyl Phenols, Fatty Alcohols, Fatty Acids and
Natural Oils also manufacture Esters of stearates & oleates, EO PO
Copolymers, Ethanol Amines such as MEA, DEA, TEA. The unit also produce APO
free (Non Alkyl Phenol i.e. NP/OP free) ethoxylates as per international
requirement. These are highly biodegradable, low foaming, high performance
wetting agent cum detergent totally stable in hard water and mild to skin. This
comprehensive range of Ethoxylates is widely used in agrochemicals, textiles,
paints, lubricants, detergents, pharmaceuticals and personal care products.
The unit has expanded its Glycol Ethers and acetates
capacity from 15,000 to 30,000 TPA. LPL is the only Butyl Glycol and Methyl
Glycol manufacturer in India along with their respective acetates. LPL also
produces 'THEIC'-(based on BASF process know how),-a unique Surfactant for the
wire enameling industry.
The unit has commenced the expansions of Ethanol Amines 10000
TPA.
Plant
Details:
1. Plant capacity (Installed)
- Glycol ethers 25,000 TPA
- Ethoxylates 30,000 TPA
- Ethanol Amines 10,000TPA
- Propoxylates - 5000 TPA
- Acetates - 5000 TPA.
- Theic - 5000 TPA
2. Storage facilities (Raw materials)
- Ethylene oxide - 30 MT
- Ethanol - 2,000 KL
- Nonyl phenol - 50 MT
- Castor oil - 50 MT
- Lauryl alcohol - 50 MT
- Normal Butanol - 125 KL
- Methanol - 50 KL
- DEG - 125 KL
- Acetic acid - 50 KL
3. Storage facilities (finished goods)
- Ethyl cellosolve - 50 MT
- Ethyl carbitol - 50 MT
- Ethyl highers - 50 MT
- Butyl cellosolve - 50 MT
- Butyl carbitol - 50 MT
- Methyl cellosolve - 50 MT
- Ethyl glycol acetate - 50 MT
- Np ethoxylates - 100 MT
- Poly ethylene glycol - 50 MT
- Ethanol amines - 200 MT
- 7500MT Tank farm capacity
for all raw materials and finished goods.
4. Packing facility
- Automatic filling machine - 04 nos.
- Electronic weighing balance - 05 nos.
- Filling facility from the storage to the filling stations directly
- Weighing bridge 40 Tons - 01 no.
5. Quality standard
They are an ISO 9001:2000 company certified by TUV
management service Gmbh. They follow the standard specifications in all the raw
matieral & finished products
6. Testing facilities
- Gas chromotographs - 02 Nos. (Perkin elmer & netel)
- Auto titrators
- Karl fischer apparatus
- Brooke field viscometer
- Low temperature bath (up to - 70°c)
- Resistivity Meter - 01 no
- Kinematic viscosity baths (@100°C)
- Colour comparators (Apha / Gardener)
- Ovens
- pH meters
- Boiling point apparatus
- Electronic weighing balance
- Water baths
- Muffle furnace
- Copper corrosion test instrument
- Resistivity meter
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.42.49 |
|
UK Pound |
1 |
Rs.84.21 |
|
Euro |
1 |
Rs.66.33 |
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 |
8 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
61 |
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 |
|