MIRA
INFORM REPORT
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Report Date : |
26.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
GODREJ AGROVET LIMITED |
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Registered Office : |
Pirojsha Nagar, Eastern Express Highway, Vikhroli, Mumbai – 400079,
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
25.11.1991 |
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Com. Reg. No.: |
11-135359 |
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CIN No.: [Company
Identification No.] |
U15410MH1991PLC135359 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMG08309A |
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PAN No.: [Permanent
Account No.] |
AAACG0617Q |
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Legal Form : |
Closely held Public Limited Liability Company |
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Line of Business : |
Manufacturing and Sale of Animal Feeds |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 2504000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of highly respectable and resourceful Godrej Group.
Available information indicates high financial responsibility of the company.
Trade relations are fair. Payments are correct and as per commitments. The company is doing exceedingly well; Godrej Group is most reliable
and trustworthy. Hence it can be regarded as a promising business partner in a medium
to long run. |
LOCATIONS
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Registered Office : |
Pirojsha Nagar, Eastern Express Highway, Vikhroli, Mumbai – 400079, Maharashtra |
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Tel. No.: |
91-22-25188010, 25188020, 25188030 |
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Fax No.: |
91-22-25188485 |
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E-Mail : |
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Website : |
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Plant : |
247 / 1, GIDC Industrial Estate, District Sachin, Surat – 394 230, Gujarat |
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Tel. No.: |
91-261-2872366, 2219544 |
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Fax No.: |
91-261-2872366 |
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E-Mail : |
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Branch : |
Flat A / 302, Kakadia Complex, G D Road, Surat, Gujarat |
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Tel. No.: |
91-261-2219544 |
DIRECTORS
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Name : |
Mr. Nadir B. Godrej |
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Designation : |
Chairman |
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Address : |
40-D, B. G. Kher Marg, Mumbai – 400006, Maharashtra, India |
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Date of Birth/Age : |
26.08.1951 |
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Date of Appointment : |
25.11.1991 |
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Name : |
Mr. Jamshyd N. Godrej |
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Designation : |
Director |
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Address : |
40-D, B. G. Kher Marg, Mumbai – 400006, Maharashtra, India |
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Date of Birth/Age : |
24.01.1949 |
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Date of Appointment : |
24.08.1992 |
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Name : |
Mr. Ardeshir B. Godrej |
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Designation : |
Director |
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Address : |
Godrej House, 67-H, Walkeshwar Road, Mumbai – 400006, Maharashtra,
India |
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Date of Birth/Age : |
03.04.1942 |
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Date of Appointment : |
25.11.1991 |
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Name : |
Mr. Chandrashekhar K. Vaidya |
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Designation : |
Managing Director |
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Name : |
Dr. Sudheer L. Anaokar |
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Designation : |
Director |
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Address : |
A – 204 Centre Point, Panchpakhadi, Opposite thane Municipal
Corporation, Thane – 400602, Maharashtra, India |
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Date of Birth/Age : |
04.01.1943 |
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Date of Appointment : |
29.06.1998 |
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Name : |
Mr. Vijay M. Crishna |
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Designation : |
Director |
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Address : |
A – 261 Grand Paradi Apartments Dadyseth Hill Off Augustkranti Marg,
Mumbai – 400026, Maharashtra, India |
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Date of Birth/Age : |
08.03.1945 |
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Date of Appointment : |
24.08.1992 |
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Name : |
Mrs. Tanya A. Dubash |
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Designation : |
Director |
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Address : |
Benreeza Estates, 6th Floor, 91 Khan Abdul Gaffar Khan
Road, Worli Seaface, Mumbai – 400018, Maharashtra, India |
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Date of Birth/Age : |
14.09.1968 |
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Date of Appointment : |
10.04.2003 |
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Name : |
Mr. Kavas N. Petigara |
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Designation : |
Director |
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Address : |
801Citadel 18-B, Ruparel Marg Malabar Hill, Mumbai – 400006,
Maharashtra, India |
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Date of Birth/Age : |
10.07.1948 |
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Date of Appointment : |
24.08.1992 |
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Name : |
Mr. Amit B. Choudhury |
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Designation : |
Director |
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Address : |
SPE 4/1 & 2, Godrej Hillside Colony, Vikhroli [West], Mumbai –
400079, Maharashtra, India |
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Date of Birth/Age : |
26.12.1942 |
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Date of Appointment : |
08.12.2004 |
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Name : |
Mr. Nisaba A. Godrej |
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Designation : |
Director |
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Name : |
Mr. Chandrashekhar K Vaidya |
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Designation : |
Managing Director |
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Address : |
J – 148, Lokmanya Nagar, T H Kataria Marg, Mahim, Mumbai – 400016,
Maharashtra, India |
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Date of Birth/Age : |
21.02.1950 |
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Date of Appointment : |
01.04.2003 |
KEY EXECUTIVES
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Name : |
Mr. Vilas Vasant Chaubal |
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Designation : |
Company Secretary |
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Address : |
Flat No. 302, Laburnum, Mahindra Gardens, Goregaon [West], Mumbai –
400062, Maharashtra, India |
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Date of Birth/Age : |
03.05.1958 |
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Date of Appointment : |
14.06.1993 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Ardeshir B. Godrej |
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396 |
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Nadir B. Godrej |
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586080 |
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Godrej Industries Limited |
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4112951 |
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Rishad K Naoroji |
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586080 |
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BUSINESS DETAILS
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Line of Business : |
The company is engaged in manufacturing and sale of Animal Feeds. |
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GENERAL
INFORMATION
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Bankers : |
Bank of India, Mumbai, Maharashtra Union Bank of India, Mumbai, Maharashtra |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Kalyaniwalla & Mistry Chartered Accountants |
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Associates/Subsidiaries : |
˛ Godrej Properties & Investments Limited ˛ Tahir Properties Limited ˛ Girikandra Holiday Homes & Resorts Private Limited ˛ Ensemble Holdings & Finance Limited ˛ Sahyadri Aerosols Limited ˛ Godrej Capital Limited ˛ Puran Plastics & Chemicals Limited ˛ Godrej Oil Palm Konkan Limited ˛ Godrej International Limited ˛ Godrej Global Mid East FZE ˛ Godrej Plant Biotech Limited ˛ Goldmohur Foods and Feeds Limited |
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Parent Company: |
Godrej Industries Limited (Formerly Known As Godrej Soaps Limited) |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
10118752 |
Equity Shares |
Rs.10/- each |
Rs.101.188
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
71.200 |
71.200 |
71.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
554.800 |
519.000 |
458.500 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
626.000 |
590.200 |
529.700 |
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LOAN FUNDS |
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1] Secured Loans |
01.300 |
139.600 |
220.500 |
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2] Unsecured Loans |
1333.500 |
180.200 |
151.300 |
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TOTAL BORROWING |
1334.800 |
319.800 |
371.800 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1960.800 |
910.000 |
901.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
755.400 |
651.480 |
611.570 |
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Capital work-in-progress |
146.400 |
08.000 |
01.600 |
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INVESTMENT |
515.900 |
335.000 |
216.000 |
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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 |
698.800
|
549.700 |
465.000 |
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Sundry Debtors |
639.800
|
504.800 |
436.200 |
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Cash & Bank Balances |
267.400
|
82.900 |
72.500 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
445.500
|
184.200 |
179.100 |
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Total
Current Assets |
2051.500
|
1321.600 |
1152.800 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1386.800
|
1293.300 |
1043.200 |
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Provisions |
121.600
|
112.800 |
37.300 |
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Total
Current Liabilities |
1508.400
|
1406.100 |
1080.500 |
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Net Current Assets |
543.100
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(84.500) |
72.300 |
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MISCELLANEOUS EXPENSES |
0.000 |
00.02 |
00.03 |
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TOTAL |
1960.800 |
910.000 |
901.500 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
6027.600 |
5671.800 |
4941.900 |
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Other Income |
54.400 |
40.200 |
39.600 |
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Total Income |
6082.000 |
5712.000 |
4981.500 |
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Profit/(Loss) Before Tax |
76.200 |
194.900 |
116.000 |
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Provision for Taxation |
07.900 |
53.200 |
26.400 |
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Profit/(Loss) After Tax |
68.300 |
141.700 |
89.600 |
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Expenditures : |
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Cost of Goods Sold |
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Manufacturing Expenses |
339.900 |
290.800 |
260.600 |
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Administrative Expenses and Selling Expenses |
647.300 |
486.700 |
374.200 |
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Raw Material Consumed |
4470.400 |
4186.200 |
3716.600 |
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Interest and Financial Charges |
51.900 |
32.400 |
40.400 |
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Employees cost |
311.700 |
271.900 |
215.900 |
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Power & Fuel |
141.000 |
119.000 |
116.400 |
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Depreciation & Amortization |
73.600 |
65.600 |
58.000 |
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Total Expenditure |
6035.800 |
5452.600 |
4782.100 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt Equity Ratio |
|
1.36
|
0.62 |
0.97 |
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Long Term Debt Equity Ratio |
|
1.34
|
0.60 |
0.78 |
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Current Ratio |
|
1.15
|
0.99 |
1.07 |
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TURNOVER RATIOS |
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Fixed Assets |
|
5.42
|
5.81 |
5.50 |
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Inventory |
|
9.66
|
11.18 |
11.32 |
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Debtors |
|
10.53
|
12.05 |
11.88 |
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Interest Cover Ratio |
|
2.47
|
7.02 |
3.87 |
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Operating Profit Margin (%) |
|
3.35
|
5.16 |
4.34 |
|
Profit Before Interest and Tax Margin (%) |
|
2.13
|
4.01 |
3.16 |
|
Cash Profit Margin (%) |
|
2.35
|
3.65 |
2.99 |
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Adjusted Net Profit Margin (%) |
|
1.13
|
2.50 |
1.81 |
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Return on Capital Employed (%) |
|
8.92
|
25.10 |
15.62 |
|
Return on Net Worth (%) |
|
11.23
|
25.31 |
17.59 |
LOCAL AGENCY
FURTHER INFORMATION
DIRECTORS' REPORT
Review of Operations
The year under review was one of the toughest years the company
has experienced. Adverse environmental factors put heavy pressure on costs
while announcement of Avian Influenza impacted sales growth. Many new
initiatives and investments made during the year also impacted the bottom line,
which declined by 52% compared to previous year. The top line grew by about 7%
compared to previous year. The business-wise performance is reviewed
hereunder:
ANIMAL FEEDS
The Animal Feeds Business continued to operate under challenging external
environment. The prolonged monsoon had its impact on key raw materials such as
de-oiled rice bran, maize resulting in increased cost for the Company, which
could not be passed on to the customers due to increased competition. Avian
influenza detected in Western parts of the country impacted the Poultry Feed
sales of the Company. Golden Feed Products Limited, a subsidiary of the
company, acquired the Shrimp Feed Marketing business of Higashimaro Feeds
(India) Limited, with effect from October 31, 2005.
INTEGRATED POULTRY BUSINESS
The detection of Avian Influenza had severe impact on off
take of the poultry products. However, the Company has been able to control the
cost by continuing to achieve breakthrough performance in its breeding
business. The Company's new TV Commercial for Real Good Chicken drew in new
customers and helped the business report good growth in the face of such
adversities.
AGRICULTURAL INPUTS
The Agri Inputs Division has continued to show excellent
performance with growth in the top line of 40% and growth in the bottom line of
49%. Aadhaars have been positioned as centres of 'Khushion ka, Khushhali ka',
i.e. centres of Happiness and Prosperity. The Company plans to have strategic
tie-ups with other corporates for bringing this vision to fruition. Recently,
an MOU was signed with Apollo Pharmacy, a member of Apollo Hospital group to
bring Health solutions to the customers of Aadhaar. Similar efforts are on to
find partners for Financial Credit needs, Insurance and a host of other
critical requirements. They draw inspiration from the appeal made by their
Honorable President to bring Urban Amenities to Rural India. The product
offering at Aadhaars has also been considerably expanded and includes most
items of daily needs. Nine new Aadhaars were opened during the year taking the
total to 23. The Company's initiative in retailing of fresh foods, especially
fresh fruits and vegetables through 'Nature's Basket' has been expanding. The
Company has opened two more stores during the year in Mumbai.
OIL PALM PLANTATIONS
During the year, the Division has brought over 3500 Hectares under Oil Palm.
The Company received allocation of fresh area in Andhra Pradesh for development
of Oil Palm. An MOU has been signed with Government of Mizoram for development
of Oil Palm in that State. The development activities in the state of Gujarat
and Mizoram have started. The Company acquired majority stake in 'Krithika Agro
Farm Chemicals and Engineering Industries Pvt. Ltd,' which has its presence in
the Oil Palm cultivation activities in the state of Orissa.
PLANT BIOTECH BUSINESS
The Plant Biotech Division has introduced Banana plants in the states of
UP and Bihar. It has also undertaken an ambitious plan to help substantially
increase the yield of Sugarcane.
FINANCE AND INFORMATION SYSTEMS
Despite overall hardening of interest rates in the economy, the Company
was able to reduce the cost of funds during the year by efficient treasury
operations. The Company's Commercial Paper programme continues to carry the Apex
rating of A1+ from ICRA for Rs 15 crore. However, after detection of Avian
Influenza, ICRA has put the Company's rating under 'rating watch with
developing implication'. IT continues to play a crucial role in the operations
of the Company. During the year, the Company provided IT solutions for the
retail businesses.
OTHER INITIATIVES
The Company has invested in one more 1.25 MW windmill, which was commissioned
during the first quarter of the year at Dhule, Maharashtra. The Maharashtra
State Electricity Distribution Company Ltd has agreed to purchase all the power
produced by this Windmill on terms attractive to the Company.
DIVIDEND
The Directors recommend a Final Dividend for 2005-06 amounting to Rs. 4.00 per
share of face value of Rs. 10/-each i.e.40% (Previous year- Interim 55%, Final
33%).
FIXED DEPOSITS
The Company has not accepted any public deposits during the
financial year under review.
COMPANY PROFILE
Subject was formerly
a division of Godrej Soaps Limited. It was set up as a separate company with
focus on the agri-sector. Over the years, the company has developed and
nurtured a close relationship with farmers. Providing them with innovative
Products, as well as educating them on world-class farming practices.
Together with its
subsidiaries Goldmohur Foods and Feeds Limited and Golden Feed Products Limited
, subject has revenues close to Rs 8700.000 millions (US $ 200 million - FY
2006). The activities of the company are vast : Compound Animal feeds,
Agricultural Inputs, Integrated Poultry Business, Oil Palm Plantations, Plant
Biotech, Retailing of Fresh Farm Produce in urban areas, and rural retailing of
a wide range of products including Agricultural inputs.
Subject acquired
Goldmohur Foods and Feeds Limited from Hindustan Lever, a Unilever subsidiary
in India, in 2001.Goldmohur Foods and Feeds Limited enjoys strong brand equity
due to its poultry and cattle feed brands. Goldmohur Foods and Feeds Limited
has a state-of-the-art R&D centre in Bangalore named 'ANIC' (Animal
Nutrition Innovation Centre). This centre is devoted to development of
innovative animal feed products. Today, subject together with its subsidiaries
has manufacturing facilities spread over 40 strategic locations and a network
of over 10,000 distributors, dealers and C&F agents. In its journey of
growth, subject has set new standards of corporate performance, reliably
delivering quality products and services to all its customers at competitive prices.
STRATEGIC TIE-UPS :
Strategic tie-ups
and acquisitions have been a way of life at Godrej Agrovet Limited. Meaningful
alliances and useful acquisitions have been providing impetus to its growth. The
acquisition of business have been in different segments ranging from Goldmohur
Foods and Feeds (Animal Feed), to India Poultry Farm (Poultry), Krithika (Oil
Palm Plantations), and Higashimaru (Marketing of Shrimp Feed). Strategic
investments have been made in business, which have a strategic fit and which
complement our business e.g. Creamline (Diary), Polchem (Bio-technology).
GLOBAL FORAYS :
Having successfully grown to be the leader
in many segments, Godrej Agrovet feels confident to take on global competition
and has started making its presence felt in the international arena too. A
joint venture with ACI Group of Bangladesh for poultry and feed operations in
Bangladesh, and acquisition of controlling stake in Al-Rahaba, which runs
broiler farms in UAE exemplify this confidence.
GODREJ
GROUP PROFILE
Started in 1897 as
a locks manufacturing company, the Godrej Group is today one of the most
accomplished and diversified business houses in India. Godrej’s success has
been driven by the company’s commitment to delivering innovation and
excellence. Through the consistent application of this commitment and a century
of ethical business conduct, Godrej has earned an unparalleled reputation for
trust and reliability.
In 1930, Godrej
became the first company in the world to develop the technology to manufacture
soap with vegetable oils; that spirit of innovation has continued throughout
the organization’s history. Today Godrej is delivering consumers exciting
innovations across a spectrum of businesses. The company’s pursuit of
excellence is equally well established and enduring. In the 1944 Mumbai docks
blast, Godrej safes were the only security equipment whose contents were
unharmed; an equal level of product quality continues to be expected from every
product bearing the Godrej brand name. Godrej management understands that the
company’s greatest asset is the trust and faith that consumers have reposed in
it, and recognizes that the company must continue to earn this trust. This
translates to the organization delivering outstanding quality and value in
everything it does.
Godrej’s ethical
and visionary practices have allowed the company to successfully expand into a
number of businesses. Today Godrej is a leading manufacturer of goods and
provider of services in a multitude of categories: home appliances, consumer
durables, consumer products, industrial products, and agri products to name a
few. A recent estimate suggested that 400 million people across India use
atleast one Godrej product every day. The group has more recently entered the
real estate and information technology sectors, and management views these as
avenues for enormous growth.
The US $1.3 Billion Godrej Group is one of
India's largest professionally run private sector groups. It has a well-established
presence in varied businesses ranging from foods and consumer durables to real
estate and information technology. In 1997, Godrej completed 100 years of
service to the nation. Today, the name Godrej is synonymous with Quality &
Trust. It is amongst the most admired Business Groups in India, delivering
quality products and services to its customers at competitive costs. All this,
with the highest international standards of customer care.
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.40.43 |
|
UK Pound |
1 |
Rs.82.11 |
|
Euro |
1 |
Rs.55.26 |
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 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--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 |
NO |
|
--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
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|