MIRA
INFORM REPORT
|
Report Date : |
04.08.2008 |
IDENTIFICATION
DETAILS
|
Name : |
HETERO LABS
PRIVATE LIMITED |
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Registered
Office : |
Hetero House, H. No. 8-3-166 / 7 / 1, Erragadda, Hyderabad - 500 018,
Andhra Pradesh |
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Country : |
India |
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Financials (as
on) : |
31.03.2007 |
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Date of
Incorporation : |
10.03.1989 |
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Com. Reg. No.: |
01-9723 |
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CIN No.: [Company
Identification No.] |
L24110AP1989PLC009723 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDP00777A |
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PAN No.: [Permanent
Account No.] |
AAACH5506R |
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Legal Form : |
Private Limited Liability Company. |
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Line of
Business : |
Manufacturers of Pentoprazole Sodium. |
RATING &
COMMENTS
|
MIRA’s Rating
: |
Aa |
RATING |
STATUS |
PROPOSED
CR EDIT LINE |
||
|
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 |
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|
Maximum Credit
Limit : |
USD 9500000 |
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|
Status : |
Very 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
marketing bulk drugs and intermediates. Financial position of the company is satisfactory. The Company’s
business is going on smoothly. Trade relations are reported as fair. Payments
are correct and as per commitments. It can be considered normal for business dealings at usual trade
terms and conditions. |
LOCATIONS
|
Registered/
Corporate Office : |
‘Hetero House’, H. No. 8-3-166 / 7 / 1, Erragadda, Hyderabad - 500
018, Andhra Pradesh, India |
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Tel. No.: |
91-40-23704923/24/25 |
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Fax No.: |
91-40-23704926/23714250 |
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E-Mail : |
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Website : |
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Area : |
3000 Sq. ft |
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Location : |
Owned |
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Regional
Office |
‘Hetero Drugs
Limited’ 607/608, 6th Floor, Matharu Arcade, Subhash Road, Ville
Parle (East), Mumbai – 400057, India |
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Tel. No.: |
91-22-56910809 |
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Factory 1 : |
Survey No 10, IDA, Gaddapotharam, Khazapally Village, Jinnaram
Mandal, Medak District, Andhra Pradesh |
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Tel. No.: |
91-8459-277100 |
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Factory 2 : |
Kazipally Village, Medak District, Andhra Pradesh |
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Branches : |
Located at :- 408, Sharda Chambers, 4th Floor, 15 New Marine Lines,
Mumbai - 400 020, Maharashtra |
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Tel. No.: |
91-22-22066075/22065498/22065507 |
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Fax No.: |
91-22-22066099 |
DIRECTORS
|
Name : |
Dr. B. Partha Saradhi Reddy |
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Designation : |
Director |
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Address : |
Plot No. 389,
Road No. 22/B, Jublihills Chequepost, Madhapoor Road, Hyderabad – 500038,
Andhra Pradesh, India |
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Date of
Birth/Age : |
06.03.1954 |
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Date of
Appointment : |
05.12.1996 |
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Name : |
Mr. Chilukuri Mohan Reddy |
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Designation : |
Whole Time Director |
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Address : |
Flat No. 104, Sai
Spurthi Apartments, Motinagar, Borabonda, Hyderabad – 500018, Andhra Pradesh |
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Date of
Birth/Age : |
02.01.1969 |
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Date of Appointment
: |
01.04.2006 |
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Name : |
Mr. Bollareddy Narasa Reddy |
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Designation : |
Whole Time Director |
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Address : |
Plot No. 98,
Sahlivahana Nagar, Kukatpally, Hyderabad, Andhra Pradesh |
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Date of
Birth/Age : |
10.08.1962 |
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Date of Appointment
: |
01.04.2006 |
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Directorship
in other Companies: |
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Name : |
Mr. A. V. Narasa Reddy |
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Designation : |
Whole Time Director |
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Address : |
Flat No. 201,
Nandi Enclave, Siddartha Nagar, Hyderabad, Andhra Pradesh |
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Date of
Birth/Age : |
21.12.1963 |
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Date of
Appointment : |
01.04.2006 |
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Directorship
in other Companies: |
|
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Mr. B. Partha Saradhi Reddy |
429,760 |
32.26 |
|
Mr. B. Kalavathi |
353,640 |
26.54 |
|
Mr. B. Krishna Sinduri |
150,000 |
11.26 |
|
Mr. B. Vamsi Krishna |
398,000 |
29.87 |
|
Mr. M. Srinivas Reddy |
200 |
0.01 |
|
Mr. B. Srinivas Reddy |
200 |
0.01 |
|
Mr. B. Soma Kantham |
200 |
0.01 |
|
Total |
1,332,000 |
100.00 |
AS ON 30.09.2007
|
Equity Share
Breakup |
|
Percentage of
Holding |
|
Category |
|
|
|
Directors or relatives of directors |
|
100.00 |
BUSINESS DETAILS
|
Line of Business
: |
Manufacturers of Pentoprazole Sodium. |
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Product : |
Conversion Charges |
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Exports to : |
USA, Canada, South America, Europe and Afro-Asia. |
PRODUCTION STATUS
|
Particulars |
|
Unit |
Installed Capacity |
Actual Production |
|
Bulk Drugs and Int |
|
Kg |
50000 |
41602 |
GENERAL
INFORMATION
|
Suppliers : |
v Ahlada Pharma Private Limited v
Likhita
Fabtech Engineers v
Flexi
Laboratories Private Limited v
Sabari
Chemicals Private Limited v
Srinija
Drugs Private Limited v
Flexit Jour
Laboratories Private Limited v
Sweta
Enterprise v
Divya
Lakshmi Engineering Industries v
Landsky
Engineers Private Limited v
Oscar Valves
Private Limited v
Ramko
engineering Industries v
Bhagyanagar
Chlorides Private Limited v
Corey
Organics Limited v
Sonal
Plasrubn Industries Private Limited v
Mahindra
Chemicals Private Limited v
Vital
Chemicals v
Fibro Plast
industries v
Creative
Pharmachem v
Prasanthi
Laboratories Private Limited v
Sri Chintan
Pharma Chem Private Limited |
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No. of
Employees : |
20 |
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|
|
Bankers : |
v
Andhra Bank Industrial
Finance Branch, Ameerpet, Hyderabad - 500 016, Andhra Pradesh v
Bank of India PTI Building, Khairatabad Branch, Hyderabad v State Bank of Hyderabad Sanath Nagar Branch, Hyderabad v Bank of Bahrain and Kuwait BBC 6-3-550, Somajiguda Hyderabad – 500082 |
|
Banking Relations : |
Satisfactory |
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|
|
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Auditors : |
M. V. Narayana Reddy & Company Chartered Accountants |
|
Address : |
D. No. 8-3-941, Flat No. 504, Vijayasree Apartments, Opposite Kamma
Sangham, Ameerpet, Hyderabad – 500073 Andhra Pradesh |
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Tel No.: |
91-40-23743975 /
23744448 |
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Associates/Subsidiaries
: |
v
Hetero Drugs Limited CIN of company : U24230AP1993PLC015582 Hetero House, H. No. 8-3-166/7/1, Erragada,
Hyderabad - 500 018, Andhra Pradesh Tel. 91-40-2370 4923 – 25 Fax. 91-40-2370 4926 / 4250 E-Mail. 1. contact@heterodrugs.com Website. http://www.heterodrugs.com -
Engaged in manufacturing and marketing of active pharmaceutical
ingredients and intermediate chemicals. v
Hetero International, Mumbai, Maharashtra v
Symed Labs Private Limited, Hyderabad, Andhra Pradesh v
Cirex Pharmaceuticals Limited |
CAPITAL STRUCTURE
AS ON 30.09.2007
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15,00,000 |
Equity Shares |
Rs. 10/- Each |
Rs. 15.000
millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
133,20,000 |
Equity Shares |
Rs. 10/- Each |
Rs. 13.320
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
13.320 |
13.320 |
13.320 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1888.478 |
1244.961 |
548.135 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
1901.798 |
1258.281 |
561.455 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1320.542 |
726.054 |
602.114 |
|
|
2] Unsecured
Loans |
0.000 |
0.000 |
50.000 |
|
TOTAL
BORROWING
|
1320.542 |
|726.054 |
652.114 |
|
|
DEFERRED TAX LIABILITIES |
105.822 |
78.611 |
72.390 |
|
|
|
|
|
|
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TOTAL
|
3328.162 |
2062.946 |
1285.959 |
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|
|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
1169.310 |
811.535 |
519.165 |
|
Capital work-in-progress
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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INVESTMENT
|
250.888 |
53.848 |
30.129 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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|
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|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
548.360
|
548.802
|
441.282
|
|
|
Sundry Debtors
|
1358.970
|
938.386
|
419.451
|
|
|
Cash & Bank Balances
|
66.631
|
46.037
|
21.770
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances
|
489.597
|
406.681
|
109.251
|
Total Current Assets
|
2463.558
|
1939.906
|
991.754
|
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
555.446
|
585.384
|
238.012
|
|
|
Provisions
|
9.407
|
157.696
|
17.293
|
Total Current Liabilities
|
564.853
|
743.080
|
255.305
|
|
Net Current
Assets
|
1898.705
|
1196.828
|
736.449
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
9.259 |
0.735 |
0.216 |
|
|
|
|
|
|
|
TOTAL
|
3328.162 |
2062.946 |
1285.959 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
3597.997 |
3625.852 |
1644.967 |
|
|
Other Income |
16.506 |
2.714 |
3.922 |
|
|
Total Income |
3614.503 |
3628.566 |
1648.889 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
900.515 |
1018.630 |
331.970 |
|
|
Provision for Taxation |
249.405 |
314.209 |
87.877 |
|
|
Profit/(Loss) After Tax |
651.110 |
704.421 |
244.093 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency |
1933.557 |
2502.044 |
621.341 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
2134.319 |
2080.745 |
1042.396 |
|
|
Salaries, Wages, Bonus, etc. |
76.501 |
48.278 |
32.530 |
|
|
Managerial Remuneration |
5.204 |
4.186 |
3.346 |
|
|
Payment to Auditors |
0.600 |
0.450 |
0.215 |
|
|
Interest |
78.619 |
50.950 |
44.719 |
|
|
Insurance Expenses |
12.182 |
9.760 |
3.963 |
|
|
Power & Fuel |
67.838 |
50.373 |
39.053 |
|
|
Depreciation & Amortization |
141.315 |
93.131 |
22.390 |
|
|
Other Expenditure |
197.411 |
272.063 |
128.307 |
|
Total Expenditure |
2713.989 |
2609.936 |
1316.919 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
18.01
|
19.41 |
14.80
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
25.03
|
28.09 |
20.18
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
28.04
|
37.02 |
21.97
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.47
|
0.81 |
0.59 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.99
|
1.17 |
1.62
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.36
|
2.61 |
3.88
|
LOCAL AGENCY
FURTHER INFORMATION
Registered office of
the company has been shifted from CH No. 8-3-166/1 and 2, Chlla Estate, First
Floor, Erragadda, Hyderabad - 500 018,
Andhra Pradesh to the present address w.e.f. 15.06.2006
History
Established
in the year 1993, with the motto to be the best in the API manufacturing,
Hetero today embodies the vision of a top notch player in developing and
commercialising products catering to a variety of therapeutic categories,
integrating into a leading finished dosage manufacturer.
True
to the Statement, "Where the Future Started Yesterday", with a
foresight on the current trends in the Pharmaceutical Market, Hetero has grown
from strength to strength, combining its Research Strengths, Manufacturing
Capabilities ,Human Resources and well established quality management system.
With
full-fledged marketing capabilities, the company has been able to market its
products in over 80 countries in Asia, Middle-east, Eastern Europe and Latin
America.With its compliance to the most stringent regulatory requirements,
Hetero has today gained foothold to market several of its APIs in the United
States, Canada and Europe.
With
all nine manufacturing facilities being supported by excellent infrastructure
and compliance to the GMP requirements, Hetero has crossed numerous milestones
in a comparatively short period since its inception.
The company has
been scaling new heights on a continual basis. These achievements have been the
result of concentrated efforts on the part of different functions within the
organization to achieve the organizational goal of being a leader.
In its path to
success, hetero has seen many a milestone being crossed and achieved many
awards on various fronts. Awards of exemplary work in Research and Development
and marketing are just a few to name.
A track of few
events that saw hetero reaching its zenith of glory are :
1] National Award
for “Best efforts in research and development” from the department of science
and research ministry of science and technology, government of India, in the
year 1996.
2] Highest exporter
award (for the year 1999) against stiff competition from international
recognized competitors.
3] Approval of the
API facilities by USFDA for compliance to CGMP noprms.
4] Approval of the
finished dosage facilities by WHO for the supply of anti-retroviral drugs.
Fixed
Assets
v
Land and Site
Development
v
Factory
Building
v
Electrical
Equipment
v
R & D
Equipment
v
ETP Machinery
v
Furniture and
Fixture
v
Office
Equipments
v
Vehicles
v
Computers
Bankers Charges
Report as per Registry
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified
|
90135802 |
|
Corporate
identity number of the company |
L24110AP1989PLC009723 |
|
Name of the
company |
HETERO LABS
PRIVATE LIMITED |
|
Address of the registered
office or of the principal place of
business in India of the company |
Hetero House, H. No. 8-3-166 / 7 / 1, Erragadda, Hyderabad - 500 018,
Andhra Pradesh |
|
Type of charge |
Immovable
Property |
|
Particular of
charge holder |
Andhra Bank, Specialised
Corporate Finance Branch, Padmaja Land Mark, Somajiguda, Somajiguda,
Hyderabad – 500082, Andhra Pradesh, India |
|
Nature of
description of the instrument creating or modifying the charge |
|
|
Date of
instrument Creating the charge |
28.12.2007 |
|
Amount secured by
the charge |
Rs. 1350.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest For OCC 11.25 % For WCDL 11.25 % Terms of Repayment As per the agreed
terms between the banker and Company Margin 25 % on PC 25 % on Stocks 25 % on Book-Debts
5 % on FLC 5 % on B G Extent and Operation of the charge In addition to
the first charges on current assets dated 22.03.2007. Second charge on
immovable properties situated at various units of the company |
|
Short particulars
of the property charged |
All immovable
properties situated at various company’s units located and around Medak
District, Andhra Pradesh |
|
Date of latest
modification prior to the present modification |
22.03.2007 |
|
Particulars of
the present modification |
All amount remain
unchanged and creation of second charge on fixed assets of the company |
|
Name of the
company |
HETERO
LABS LIMITED |
|
1) Date and
description of instrument creating the change |
Agreement of Mortgage/
Charge dated 29.09.2006 |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 27.500
Millions |
|
3) Name and
Address and description of the person entitled to the charge. |
Bank of India Khairatabad Branch, PTI Building, Masab Tank, Hyderabad – 500082,
Andhra Pradesh, India |
|
4) Date and brief description of instrument
modifying the charge |
29.09.2006 |
|
Name of the
company |
HETERO
LABS LIMITED |
|
1) Date and description
of instrument creating the change |
Agreement of
Modification of Charge dated 30.11.2006 |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 670.000
Millions |
|
3) Name and
Address and description of the person entitled to the charge. |
State Bank of Hyderabad, Sanath Nagar Branch Industrial Area, Sanath Nagar, Hyderabad – 500018, Andhra Pradesh,
India |
|
4) Date and brief description of instrument
modifying the charge |
30.11.2006 |
|
5) 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. |
Agreement of
modification of charge dated 10.10.2003 of Rs 270.000 Millions modified on
31.11.2006 with Rs 670.000 Millions |
|
Name of the
company |
HETERO
LABS LIMITED |
|
1) Date and
description of instrument creating the change |
Date 25.08.2004 Composite
Agreement |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Term Loan of Rs
150.000 Millions |
|
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 |
First pari-passu charge on all existing and future fixed assets with
other term lenders. |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
Finer rate at
BMPLR + 0.25% -3.25% i.e. 10.5% +0.25%-3.25% = 7.5% p.a. with monthly rests 20 Quarterly
installments commencing from June 2005 (interest is to be paid as and when
due) |
|
5) Name and
Address and description of the person entitled to the charge. |
Andhra Bank, SCF
Branch, Somajiguda, Hyderabad |
|
6) Date and brief description of instrument
modifying the charge |
N.A |
|
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. |
N.A. |
CMT REPORT [Corruption, Money laundering & Terrorism]
The Public Notice
information has been collected from various sources including but not limited
to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] 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.42.37 |
|
UK Pound |
1 |
Rs.84.01 |
|
Euro |
1 |
Rs.65.96 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
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 |
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 |