MIRA
INFORM REPORT
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Report Date : |
08.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
GLORY POLY FILMS LIMITED |
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Registered Office : |
201, Vintage Pearl, 'A' Wing, 29th Road, Bandra (West),
Mumbai – 400 018, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
15.12.1997 |
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Com. Reg. No.: |
112461 |
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CIN No.: [Company
Identification No.] |
L92110MH1997PLC112461 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMG05222A |
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PAN No.: [Permanent
Account No.] |
AAACG5068K |
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Legal Form : |
Public Limited Liability company The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers of
flexible laminates and multilayer barrier ( 3 layers and 5 layer Nylon / EVOH
based ) Films |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 3100000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having satisfactory track. Trade
relations are fair. Payments are reported as slow but correct. However, the company can be considered normal for business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Vintage Pearl, 2nd floor , A Wing, 29th Road , Bandra West, Mumbai -
400 050, Maharashtra, India |
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Tel. No.: |
91-22-26514810 / 11 / 39577002 |
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Fax No.: |
91-22-26514812 |
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E-Mail : |
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Website : |
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Factory 1 : |
51/ 4-A, 51/ 4-B, 51/ 4-C, 51/ 4-C, 51/ 4-D, 54/ 1-A, 54/ 1-C, 54/
2-A, 54/ 2-E, 54/ 2-H, 54/ 3-D and 54/ 6-A, Daman Industrial Estate, Village
Kandiya, Daman (U.T.). |
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Factory 2 : |
Survey No.261/ 1, 2 and 4, 292/ 1 and 2, Village Dunetha, Daman (U.T). |
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Tel. No.: |
91-260-2220304 |
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Fax No.: |
91-260-2220305 |
DIRECTORS
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Name : |
Mr. Prakash N Kela |
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Designation : |
Chairman |
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Name : |
Mr.
Yogesh P Kela |
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Designation : |
Managing Director |
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Name : |
Mr.
Umesh P Kela |
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Designation : |
Executive Director |
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Name : |
Mr.
Kishore N Kela |
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Designation : |
Director |
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Name : |
Mr. Deviprasad
K Taparia |
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Designation : |
Director |
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Name : |
Mr. Navin C Chokshi |
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Designation : |
Director |
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Name : |
Mr. Ramakant B Jhunjhunwala |
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Designation : |
Director |
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Name : |
Mr. Vilas R Shah |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Nitesh Jain |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2008
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Category of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters Holding |
9248148 |
52.94 |
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Indian Public and Other |
3340802 |
19.13 |
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Corporate Bodies |
4845890 |
27.74 |
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NRIs/ OCBs/ Foreign Nationals |
33308 |
0.19 |
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Total |
17468148 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of
flexible laminates and multilayer barrier ( 3 layers and 5 layer Nylon / EVOH
based ) Films |
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Products : |
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GENERAL INFORMATION
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Customers : |
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No. of Employees : |
About 200 |
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Bankers : |
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Facilities : |
Secured Loans :
Unsecured Loans :
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Mittal and Associates Chartered Accountants |
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Address : |
Mumbai |
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Internal Auditors : |
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Name : |
ADV and Associates Chartered Accountants |
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Address : |
Mumbai |
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Associates : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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32000000 |
Equity Shares |
Rs.10/- each |
Rs.320.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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17468148 |
Equity Shares |
Rs.10/- each |
Rs.174.681
millions |
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Share warrant application money |
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Rs.17.280
millions |
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Total |
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Rs.191.961 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
191.961 |
92.481 |
92.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
428.211 |
75.751 |
40.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
620.172 |
168.232 |
132.700 |
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LOAN FUNDS |
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1] Secured Loans |
424.556 |
347.897 |
270.200 |
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2] Unsecured Loans |
22.923 |
9.535 |
2.000 |
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TOTAL BORROWING |
447.479 |
357.432 |
272.200 |
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DEFERRED TAX LIABILITIES |
11.524 |
7.686 |
0.000 |
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TOTAL |
1079.175 |
533.350 |
404.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
231.651 |
234.087 |
211.300 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
16.641 |
0.626 |
0.600 |
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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 |
1028.713
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415.878 |
145.100 |
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Sundry Debtors |
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91.600 |
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Cash & Bank Balances |
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11.100 |
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Other Current Assets |
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0.000 |
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Loans & Advances |
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76.000 |
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Total
Current Assets |
1028.713
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415.878 |
323.800 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
219.294
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121.568 |
127.600 |
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Provisions |
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4.800 |
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Total
Current Liabilities |
219.294
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121.568 |
132.400 |
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Net Current Assets |
809.419
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294.310 |
191.400 |
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MISCELLANEOUS EXPENSES |
21.464 |
4.327 |
1.600 |
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TOTAL |
1079.175 |
533.350 |
404.900 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
585.873 |
357.238 |
417.600 |
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Other Income |
25.565 |
15.477 |
0.800 |
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Total Income |
611.438 |
372.715 |
418.400 |
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Profit/(Loss) Before Tax |
52.001 |
20.870 |
42.000 |
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Provision for Taxation |
11.901 |
(14.666) |
15.300 |
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Profit/(Loss) After Tax |
40.100 |
35.536 |
26.700 |
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Earnings in Foreign Currency : |
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Export Earnings |
3.552 |
0.345 |
NA |
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Total Earnings |
3.552 |
0.345 |
NA |
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Imports : |
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Raw Materials |
85.586 |
88.026 |
NA |
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Stores & Spares |
0.498 |
0.000 |
NA |
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Total Imports |
86.084 |
88.026 |
NA |
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Expenditures : |
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Manufacturing Expenses |
26.037 |
17.603 |
13.700 |
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Administrative Expenses |
30.722 |
23.008 |
13.400 |
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Raw Material Consumed |
475.453 |
308.372 |
272.200 |
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Increase/(Decrease) in Finished Goods |
(12.438) |
(34.792) |
(29.800) |
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Interest and Financial Charges |
19.703 |
24.561 |
21.700 |
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IPO Expenses Written off |
5.366 |
0.000 |
0.000 |
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Depreciation & Amortization |
14.594 |
13.093 |
17.700 |
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Other Expenditure |
0.000 |
0.000 |
67.500 |
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Total Expenditure |
559.437 |
351.845 |
376.400 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2008 |
30.09.2008 |
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Type |
1st
Quarter |
2nd
Quarter |
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Sales Turnover |
156.300 |
217.300 |
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Other Income |
6.500 |
2.700 |
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Total Income |
162.800 |
220.000 |
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Total Expenditure |
135.200 |
184.800 |
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Operating Profit |
27.600 |
35.200 |
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Interest |
11.700 |
14.100 |
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Gross Profit |
15.900 |
21.100 |
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Depreciation |
3.700 |
3.800 |
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Tax |
1.000 |
1.500 |
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Reported PAT |
11.200 |
15.800 |
KEY RATIOS
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PARTICULARS |
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31.03.2008 |
31.03.2007 |
31.03.2006 |
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PAT / Total Income |
(%) |
6.56
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9.53 |
6.38 |
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Net Profit Margin (PBT/Sales) |
(%) |
8.88
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5.84 |
10.06 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
4.07
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3.21 |
7.84 |
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Return on Investment (ROI) (PBT/Networth) |
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0.08
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0.12 |
0.32 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.08
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2.85 |
3.05 |
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Current Ratio (Current Asset/Current Liability) |
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4.69
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3.42 |
2.45 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
The Company was incorporated on 15th December 1997 as a private limited company with the main object to carry on the business of manufacturing of co extruded multi layer barrier film for packing of various food and non-food products. The present plant can be used to manufacture mono as well as multilayer films. Mr. Prakash N. Kela, Mr. Yogesh P. Kela and Mr. Umesh P. Kela are promoted the company. The company commenced its Commercial production since March 1998. December 2005, the company has converted into public limited company.
The Company is setting up an expansion project whereby the existing
manufacturing facility at Daman would be expanded and a new manufacturing
facility at Daman (U.T.) would be acquired.
May 2007, the company has entered into capital market. The company has issued
82,20,000 Equity shares to the public. Issue price is Rs.48/- per share.
Operation and
Business Performance
During the year, the Company has achieved total income of Rs.623.877 millions as compared to Rs.407.507 millions, showing growth of 53.09% and Profit after Tax (PAT) is up by 32.13% compared to the previous year. Company has managed to achieve targets despite in increases in raw material prices i.e. Granules, as the Company was able to pass on the price rise to customers.
Dividend
Owing to the development and expansion plan undertaken by the Company and
in order to retain liquidity, the Directors do not recommend payment of any
dividend during the year.
Issue of convertible warrants and change
in Authorised Capital
Pursuant to the resolution passed by the Members at their meeting held on 08th February, 2008, the Authorized Capital of the Company has increased from 185.000 millions to 320.000 millions by creation of 13500000 Equity shares of Rs.10/- each. Further the Company has allotted 1600000 convertible warrants to promoters and non-promoters @ Rs.108/- each and these warrants are convertible (at the sole option of warrants holders) in to equity shares within a period of 18 months from the date of allotment of warrants.
Issue of FCCBs/ADRs/GDRs and Expansion of Project
In order to meet the requirement of funds for meeting the expenditure on expansion of Company's existing manufacturing facility in Daman and import of high technology assets from abroad in foreign exchange leading to an increase in the production capacity including but not limited to the manufacture of superior quality product to meet the overseas as well as the domestic demand, the Company is proposing to mobilize an aggregate sum up to US$ 25 million either in the international market by issue of FCCBs and/or GDRs and/or ADRs or equivalent amount in the domestic market through a placement to the Qualified Institutional Buyers or a combination of both domestic and international market. The Company feels that international listing of underlying shares would also create a wider public trading market for its equity securities and further International offering would enhance its visibility and brand name and enable the Company to use equity securities for future growth opportunities.
Considering the advantages offered by the international market, it is
considered prudent to raise capital from international markets through issue of
securities viz., FCCBs and/or GDRs/ADRs to foreign investors on a private
placement basis or through a public offering or alternatively through a QIP
Placement in the domestic market.
MANAGEMENT DISCUSSION
AND ANALYSIS
THE MACRO VIEW: PACKAGING INDUSTRY
The Indian packaging industry stands at Rs.650 bn and will grow at 5-20%
depending on the type of packaging. Growth rate of the domestic packaging
industry is more than the developed countries' growth rate of around 3%. The
fastest, growing segments are laminates and flexible packaging, especially PET
and woven sacks. The food processing industry is likely to double its capacity
over the next 3-4 years, leading to huge demand for packaging material.
Moreover, the shift from loose packs to branded packs will drive growth for the
industry.
Domestic demand for polyester film grew at 90% CAGR from 80,000 tpa in 2002 to
20,00,000 tpa in 2007. With this sigh growth rate, India is likely to become
the second largest market for polyester films after the US in the years to
come.
Huge expansion of the retail segment is likely to enhance packaging material
requirement, as all major retail giants are likely to start their private label
for food items like cereals, apparel, tea, coffee, pickle, fast food, etc. The
retail sector is likely to grow over 30% in India, which in turn will result in
huge requirement for packaging material.
Most of the basic raw material (apper, board, plastic, glass and metal)
required for packaging industry is available in abundance in India. Paper and
board packaging predominates the domestic market, accounting for 37% and
plastic around 18% of the packaging market.
Domestic laminates market, where GPL has strong presence, is placed at Rs.60.0
bn and is growing around 20% per annum. There are more than 200 flexible
packaging converters in India, of which 50 are in the organised sector and
constitute 40% of sales.
Flexible packaging consists of multi-layer laminated sheets of plastics (PVC,
LDPE, HDPE, BOPP, BOPET), paper, cloth or metal foils that are used separately or
in combination of various packaging applications. Flexible packaging has a
unique set of properties to ensure toughness, moisture, aroma retention, low
odour, taste etc. Flexible packaging laminates are used for packaging of
processed food e.g. Biscuits, snacks, confectionery, spices, wheat flour, rice,
pulses etc., personal products e.g. shampoo, soaps, detergents, hair dye etc.,
beverages e.g. tea, coffee, milk products, baby food etc., other items like
lubricants, pesticides, pharmaceuticals etc.
According to the Indian Institute of Packaging (IIP), the organized sector of
the industry is less than 5% but it controls over 70% of the market by volume.
Currently total market size of packaging industry in the country is about $6.50
billion, out of which flexible packaging commands 22%, that is $1.32 billion
and flexible packaging is expected to grow at the rate of 20%.
Flexible packaging materials were the most commonly and vastly used means of packing in India, Flexible packaging dominates the food packaging and is one of the main end-use applications for flexible packaging. Flexible packaging will continue to develop new applications while also supplanting rigid containers, supported by a favorable environmental profile and improvements in barrier properties and convenience.
The raw material for flexible packaging include Aluminium foil and Plastic
films such as Polyester films, Low density polyethylene (LDPE) films,
High-density Polyethylene (HDPE) films and biaxially oriented polypropylene
(BOPP) films cater to the flexible packaging segment. Globally 70 percent
Plastic films and BOPP are used in food packaging; in India it is just 40
percent. But as and when the organized retail market will grow in size, Indian
consumption will catch up with the world average and will continue to grow over
other expensive packaging materials like metal, paper glass and aluminum foil.
BUSINESS REVIEW:
The Company manufactures extruded multi layer barrier film, flexible laminates
printed/ unprinted. Co-extruded film has multiple/diverse applications as a
packaging material for food, Liquids like Milk and Edible Oil and non-food
items. The company's presence in both multi layer barrier film and flexible
laminated packaging make its integrated player with ability to supply timely
quality material at a competitive price. The Company is also engaged in
Rotogravure printing of flexible laminated packaging material.
The Company's Multilayer barrier film and flexible laminate business with its
highly cost effective and functionally efficient product is growing at an
impressive rate annually. The technologically superior and highly dependable
plastic films produced by the Company in its state-of-the-art ISO 9001-2000
certified plants can be structured in up to seven layers and tailored for
almost any machining requirements and are capable of meeting both Flexographic
and Rotogravure printing standards. The product can be used in a wide range of
industry/business such as packaging, industrial coating, holography, metalising,
printing and lamination etc.
The Company has the facility to provide Multilayer barrier Film upto 7 layers
with high barrier Films This advanced film technology offers customers a
combined barrier and sealant film that can reduce the number of lamination
passes required in the converting process, saving the converter time and money
without sacrificing package performance while allowing to remain competitive in
the changing marketplace, while affordably expand into additional markets.
These films are especially useful for packaging products that need high
barrier.
The Company also is producing flexible packaging materials based on the
requirement and need of the customers by laminating different substrates such
as plastic films, paper and metal foils. Polyester and BOPP films are the
principal plastic films used as raw materials for producing packaging
materials. Each has different qualities suiting it to a particular type of
application. Multilayer barrier Film enables superior print quality, high transparency,
high tensile strength, good machinability, effective gas barrier properties
facilitating aroma retention, exceptional features and strength to be achieved.
It has very effective moisture barrier and heat sealable properties.
Flexible package, due to its convenience in handling and disposal, lower raw material cost and barrier against moisture and gases, find application in the packaging toothpastes, soaps, shampoos, detergents, processed foods, beverages, confectionary, snacks food and pan masala. To a lesser extent, it is also used in automobile and healthcare products. The revenue growth of converters depends on the fortunes of the fast moving consumer goods industry.
The Company has successfully developed several new packaging for various applications
suitable for Food Industry, the Bakery-and Confectionery Industry, Beverage
Industry and the Personal Care Products Industry. The Company's strategy for
product innovation together with enhanced quality and low cost has led to the
significant growth in sales.
The company also has 8 colour Rotogravure printing facilities which enable them
to supply value added laminated printed material to the customer. Thus company
is present in complete value chain in Flexible packaging segment, which gives
it benefit to supply timely Quality material to its customers at a competitive
price. The company is committed to provide food-packaging material for food
products without any hazards and contamination and has implemented HACCP based
Food Safety System.
CONTINGENT
LIABILITIES:
a) Estimated contracts remaining to be executed and not provided for: Rs.627.300 millions
b) Bank Guarantee Rs.0.875 million
c) Corporate Guarantee Rs.68.500 millions to the Bank for a company under the same management.
FIXED ASSETS
- Land
- Building
- Plant and Machinery
- Electrical Equipment
- Office Equipment
- Furniture and Fixtures
- Vehicles
- Computers and Peripherals
WEBSITE DETAILS:
BUSINESS:
Flexible Laminates
Subject makes a variety
of laminated structures for food and non-food applications which are custom
designed to give optimum performance at an affordable cost. The products are
used to give barrier and protection to various solids, powders and liquids. The
customers have an option of getting printing upto 8 colors in the advanced
rotogravure machines having fully auto registration system.
Multilayer films
Subject is one of the leading
suppliers of 3 layer and 5 layer (Nylon / EVOH based co-extruded films which are
used for shelf sensitive products. The barrier films are individually designed
as per the customer specifications and are available in roll form, pouches,
etc. The advanced rotogravure printing machines having fully auto registration
system are designed to give the best possiable results upto 8 colors.
MARKETS:
Subject mainly caters to the food industry and the FMCG sectors as well as some industrial sectors. The products find use in the following end use applications:
Confectionary items
Atta / Flour
Coffee
Tea
Milk
Milk Powder
Cheese
Soft Drink Concentrates
Pop Corn
Besan
Rice
Baking Products
Edible Oil
Ghee
Vanaspati
Hair Oil
Cereals
Snack Foods
Chocolates
Deteregent
Shampoo
Cosmetics
Biscuits
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] 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.49.69 |
|
UK Pound |
1 |
Rs.72.96 |
|
Euro |
1 |
Rs.63.46 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
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 |
|