MIRA INFORM REPORT

 

 

Report Date :

26.02.2008

 

IDENTIFICATION DETAILS

 

Name :

GWALIOR CHEMICAL INDUSTRIES LIMITED

 

 

Registered Office :

182, Western India House, Sir Pheroze Shah Mehta Road, Fort, Mumbai – 400001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

14.02.1984

 

 

Com. Reg. No.:

032170

 

 

CIN No.:

[Company Identification No.]

U24249MH1984PLC032170

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BPLG01494D

 

 

PAN No.:

[Permanent Account No.]

AAACG3745P

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturing and exporting of side chain cholorotoluenes and their derivatives, thinoyl chloride, sodium bisulphate and special pigments.

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 6136064

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having satisfactory track. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are usually correct and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

LOCATIONS

 

Registered Office :

182, Western India House, Sir Pheroze Shah Mehta Road, Fort, Mumbai – 400001, Maharashtra, India

Email :

sanjeev@gwaliorchemicals.com

Website :

www.gwaliorchemicals.com

 

 

Corporate Office :

K K Chamber 4th Floor, Sir Purushottamdas Thakurdas Road., Fort, Mumbai – 400 023, Maharashtra, India

Tel. No.:

91-22-66388500

Fax No.:

91-22-66388620

E-Mail :

enquiry@ gwaliorchemicals.com

investor.relations@gwaliorchemicals.com 

Website :

www.gwaliorchemicals.com

 

 

Corporate Office :

29, Bank Street, 1st Floor, Fort, Mumbai – 400 023, Maharashtra, India.

Tel. No.:

91-22-22833239 / 22662843

Fax No.:

91-22-22873544 / 22662453

E-Mail :

gwalior@sancharnet.in

gwaliorchemngd@vsnl.com

Area :

http://www.gwaliorchemicals.com

 

 

Works/ Factory :

·         Birlgram, nagda, Madhya Pradesh, - 456 331

Tel No: 91-7366-246283/ 248104 / 248023

Fax No:91-7366-246283 

E Mail :  enquiry@gwaliorchemicals.com

 

·         GIDC Industrial Estate, Ankleshwar, Gujarat

Tel No: 91-2646-227175 / 223280 / 221776

Fax No: 91-2646-224908

 

 

Administrative office:

1 and 2, Western India house, 1st Floor, Sir P M Road, Mumbai – 400 001, Maharashtra

Tel. No.:

91-22-2287 3541 / 22870415 / 22049630

Fax No:

91-22-22851809

E Mail:

gwalior@vsnl.com

 

DIRECTORS

 

Name :

Mr. Ashwin Kumar Kothari

Designation :

Chairman and Executive director

Address :

4, Gold Cornet, 1st Floor, 11, N. Gamadia Road, Mumbai – 400 026

Date of Birth/Age :

14.09.1942

Date of Appointment :

12.05.1993

 

 

Name :

Mr. Harisingh Shyamsukha

Designation :

Executive director

Address :

Plot No. 2A & 2B, Nappels Sobani Road, Colaba, Mumbai – 400 005

Date of Birth/Age :

15.10.1949

Date of Appointment :

12.05.1993

 

 

Name :

Mr. Vallabh Prasad Biyani

Designation :

Executive director

Address :

2, GCIL, Executive Block, Chemical Staff Colony, Birlagram, Nagda, Ujjain – 456 331, Madhya Pradesh

Date of Birth/Age :

31.03.1949

Date of Appointment :

30.06.1986

 

 

Name :

Mr. K N Lukhariwala

Designation :

Executive director

 

 

Name :

Mr. Rakesh Sharma

Designation :

Independent Director

 

 

Name :

Mr. B P Kejariwal

Designation :

Independent director

Date of Birth/Age :

63 years

Experience :

42 years

Date of Appointment :

04.02.2005

Committee Membership:

Remuneration Committee of Gwalior Chemical Industries limited

 

 

Name :

Mr. Milan Mehta

Designation :

Independent director

Date of Birth/Age :

43 years

Experience :

20 years

Date of Appointment :

04.02.2005

Other directorship :

Precision Wires India limited

 

 

Name :

Mr. K P S Dagur

Designation :

Nominee director

 

 

Name :

Mr. Rohit kothari

Designation :

Non executive director

 

 

Name :

Mr. Pratap R Merchant

Designation :

Independent Director

Date of Birth/Age :

72 years

Qualification :

B.Com, CAIIB-1

Experience :

27 years

Date of Appointment :

31.07.2007

Other directorship:

·         Precision Wire (India) Limited

·         Setco Automotive Limited

·         KJMC Asset Management Company Limited

·         N S Coal Private Limited

Committee Chairmanships:

·         Audit Committee – KJMC Asset Management Company Limited

·         Remuneration Committee-Setco Automotive Limited

·         Shareholders Grievance: Setco Automotive Limited

Committee memberships:

·         Audit committee: Gwalior Chemicals Industries Limited

·         Remuneration Committee: Gwalior Chemicals Industries limited

·         Audit Committee: Setco Automotive Limited

·         Audit Committee: Precision Wire (India) limited

·         Remuneration Committee: precision Wire India Limited

·         Remuneration Committee: KJMC Asset Management Company Limited

 

 

Name :

Mr. Pradeep M. Godbole

Designation :

Director

Address :

IDBI Tower, WTC Complex, Cuffe Parade, Mumbai – 400 005

Date of Birth/Age :

03.08.1957

Date of Appointment :

31.08.2001

 

KEY EXECUTIVES

 

Name :

Mr. S N Sharma

Designation :

President Technical

 

 

Name :

Mr. V. V. Suresh

Designation :

President Marketing

 

 

Name :

Mr. S K Jain

Designation :

President Commercial

 

 

Name :

Mr. Gaurav Shyamsukha

Designation :

Chief Executive Officer

 

 

Name :

Mr. Sanjeev Pathak

Designation :

Company Secretary

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

No. of Shares

Percentage of Holding

Mr. Pratap R Merchant

1000

----

Promoter and promoter Group:

 

 

Promoter and promoter Group

8698370

35.25

Promoter Group (Bodies corporate)

6101630

24.73

Public:

 

 

Mutual Fund

3283678

13.31

Trust

1000

00.00

Bodies Corporate

2019675

08.18

Directors

448

00.00

NRI

24079

00.10

Public – Resident Individuals

4547663

18.43

 

 

 

Total

24677543

100.00

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and exporting of side chain cholorotoluenes and their derivatives, thinoyl chloride, sodium bisulphate and special pigments.

 

 

Products :

Item code No.

Product Description

29122100

Benzaldehyde (BCHO)

29159000

Benzyl Chloride(BCL)

-----

Thionyl Chloride(TC)

29062100

Benzyl Alcohol (BOH)

 

 

 

·         Acetyl Chloride

·         Benzaldehyde

·         Benzo Trichloride

·         Benzyl Acetate

·         Benzyl Alcohol (FR)

·         Benzyl Alcohol (Tech)

·         Benzyl Chloride

·         Sodium Benzoate

·         Sulphur Dichloride

·         Sulfuryl Chloride

·         Thionyl Chloride

 

 

Exports :

 

Products :
  • Benzyl chloride
  • Benzoyl chloride.

 

PRODUCTION STATUS

 

Particulars

 

Unit

Installed Capacity

Actual Production

Chloro Toluene and derivatives

 

MT

53580

19368

Other – Chloro Toluene Section

 

MT

62000

---

Acid Chlorides

 

MT

4632

1423

Others

 

MT

42000

74972

Wind Electric Generation

 

MT

4.425

---

 

GENERAL INFORMATION

 

No. of Employees:

500

 

 

Bankers :

·         State Bank of India

·         Bank of Baroda

·         Industrial Development Bank of India

·         Housing Development Finance Corporation

 

 

Facilities :

SECURED LOAN

31.03.2007

 

(Rs. in millions)

Cash credit/ working Capital Demand lo0ans

 

A) Rupee Loans ./ Cash Credit

237.985

Term Loan

5.555

A) Rupee loans

83.312

B) Foreign Currency Loan

25.218

Corporate Loan From SBI

97.261

HDFC Bank Limited

150.00

From Financial Institution:

 

A) Rupee loan

188.363

B) Foreign Currency Loan

1.628

Vehicle Loan

1.628

Notes:

  1. Cash credit and export credit are secured by hypothecation of Stocks and book debts pertaining to Company unit at nagda and ankleshwar and further secured by second charge on the fixed assets. Demand Loan is secured by pledge of investments.

 

  1. Term loan from IDBI, SBI (Excluding term loan for wind \mills), BOB AND HDFC –II secured by first charge ranking pari passu on all immovable properties both present and future and first charge by way of hypothecation of all immovable properties including moveable machineries, spares, tools and accessories present and future subject to prior charges created and /or to created and further secured by personal guarantee of the some of the Directors.

 

  1. Term loan from SBI for wind mills is secured by first charge on all immovable properties both present and future and first charge by way of hypothecation of all movable properties including machineries, spares, tools and accessories present and future subject to prior charges created and / or to created for company wind power project at village Chakale District Nandurbar, Maharashtra

Repayable within one year Rs. 105.128 millions, (previous Year Rs. 107.309 millions]

 

  1. Term loan from HDFC is secured by equitable mortgage of deposit of title deed of land together with other structure, fixture and fittings constructed / to be constructed in future for staff residential colony.

[Repayable within one year Rs. 2.248 millions, (previous Year Rs. 1.861 millions]

 

  1. Vehicle loans from ICOCI Bank and ICICI Capital are secured by hypothecation of Motorcars purchased

[Repayable within one year Rs. 0.773 millions (previous Year Rs. 1.465 millions]

 

UNSECURED LOANS

31.03.2007

 

(Rs. in millions)

A) From Corporate Bodies

1.471

B) Fixed Deposits

0.000

C) Deferred Sales Tax Liability

11.700

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Sarda and Pareek

Chartered accountants 

 

 

Associates/Subsidiaries :

·         G T Z (Bombay) Private Limited

·         Aroni Chemical Industries Limited

·         Elrose Mercantile Private Limited

·         Winro Commercial India Limited

·         Four Dimension Securities (I) Limited

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

27000000

Equity shares

Rs.10/- each

Rs.270.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

24676543

Equity shares

Rs.10/- each

Rs.246.765 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

246.765

148.000

148.00

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

1287.251

472.761

321.500

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

1534.016

620.761

469.500

LOAN FUNDS

 

 

 

1] Secured Loans

789.322

677.830

464.900

2] Unsecured Loans

13.171

49.711

121.000

TOTAL BORROWING

802.493

727.541

586.000

DEFERRED TAX LIABILITIES

213.009

173.283

0.000

 

 

 

 

TOTAL

2549.518

1521.585

1055.400

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1252.344

1108.273

987.600

Capital work-in-progress

61.338

11.272

0.100

 

 

 

 

INVESTMENT

351.395

1.394

0.300

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

186.671

149.733

98.100

 

Sundry Debtors

581.510

380.453

250.700

 

Cash & Bank Balances

45.254

26.378

18.900

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances

220.385

65.044

74.400

Total Current Assets

1033.820

621.608
442.100

Less : CURRENT LIABILITIES & PROVISIONS

 

 
 

 

Current Liabilities

119.907

209.152

372.500

 

Provisions

29.472

19.033

8.900

Total Current Liabilities

149.379

228.185
381.400

Net Current Assets

884.441

393.423
60.700

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

7.223

6.700

 

 

 

 

TOTAL

2549.518

1521.585

1055.400

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

 

 

 

 

Sales Turnover

2053.641

1706.276

1592.200

Other Income

16.254

9.286

5.000

Stock Adjustment

0.000

0.000

[5.600]

Total Income

2069.895

1715.562

1591.600

 

 

 

 

Profit/(Loss) Before Tax

274.911

238.887

191.900

Provision for Taxation

87.562

82.948

60.600

Profit/(Loss) After Tax

187.349

155.939

131.300

 

 

 

 

FOB Value of Imports

761.233

484.167

0.000

 

 

 

 

Value of import on CIF Basis

101.824

293.646

0.000

 

 

 

 

 

 

 

 

Expenditures :

 

 

 

 

Raw material consumed

998.347

888.172

714.000

 

Excise duty

0.000

0.000

181.800

 

Other manufacturing Expenses

0.000

0.000

191.100

 

Employees cost

0.000

0.000

51.600

 

Miscellaneous Expenses

0.000

0.000

5.400

 

Increase / Decrease  in stocks

[9.892]

[21.480]

0.000

 

Cost of goods Traded

56.344

3.400

0.000

 

Manufacturing Expenses

341.960

266.924

0.000

 

Payments and provision

52.146

45.550

0.000

 

Administration and Other expenses

41.018

34.265

0.000

 

Selling and Distribution Expenses

188.016

134.399

168.500

 

Impairment of assets

0.218

0.000

0.000

 

Interest and Financial Charges

56.279

66.930

44.600

 

Depreciation & Amortization

70.549

61.880

42.700

Total Expenditure

1804.877

1501.520

1399.700

 

 

QUARTERLY RESULTS

 

Year

30.06.2007

30.09.2007

31.12.2007

Type

1st Quarter

2nd  Quarter

3rd Quarter

Sales Turnover

602.000

692.500

796.700

Other Income

0.000

0.000

4.100

Total Income

602.000

692.500

800.800

Total Expenditure

489.300

559.400

650.600

Operating Profit

112.700

133.100

150.200

Interest

17.800

24.500

21.700

Gross Profit

94.900

108.600

128.500

Depreciation

20.100

21.500

23.700

Tax

23.900

16.100

26.000

Reported PAT

50.900

57.700

66.800

 

 

KEY RATIOS

 

Year

31.03.2007

31.03.2006

31.03.2005

Debt-Equity Ratio

0.71

1.20

1.25

Long Term Debt-Equity Ratio

0.48

0.86

0.96

Current Ratio

1.32

0.91

0.91

TURNOVER RATIOS

Fixed Assets

1.55

1.53

1.63

Inventory

13.34

15.52

18.08

Debtors

4.66

6.09

6.77

Interest Cover Ratio

5.88

4.57

5.30

Operating Profit Margin(%)

17.90

19.11

17.54

Profit Before Interest And Tax Margin(%)

14.76

15.89

14.85

Cash Profit Margin(%)

11.49

11.32

10.93

Adjusted Net Profit Margin(%)

8.35

8.11

8.25

Return On Capital Employed(%)

18.01

25.58

26.03

Return On Net Worth(%)

17.38

28.60

32.35

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY:

 

Subject was incorporated on 14th February, 1984 at Mumbai in Maharashtra under the name and style of Shubham Aromatics Private Limited having Company Registration Number 32170.

 

Recently the name of the company was changed to the present.

 

 

DIRECTOR REPOTRS:

 

Financial Performance: 

(a) Results of Operations: 

During the year under review, the company has earned a total income of Rs.2268.927 millions as compared to Rs.1920.088 millions of the previous year. 

 

 Their net sales increased from Rs.1706.276 millions to Rs.2053.641 millions during the year, showing a growth of 20.36% compared to the previous year. 

 
(b) Export: 

There has been a considerable growth of 55.59% in the Export turnover of the Company, which is reported to be Rs.819.294 millions as against Rs. 526.580 millions during the previous year. The company is exporting its products to various countries across the world. The Directors are confident to explore better overseas market in the years to come.

 

Initial Public Issue: 

The Directors have pleasure to Inform you that the Company's Initial public offer for a sum of Rs.800.000 millions through the 100% Book Building Process has successfully over subscribed by more than 7 times.

 

Industry Structure and Developments: 

The Indian chemical industry is one of the fastest growing sectors of Indian economy. It contributes 13% to the India's gross domestic product.

 

The chemical industry in India is fragmented and dispersed with several companies having varied product portfolios. In India, chemicals are sold directly to large customers and through distribution channels. Distribution channels mostly consist of stockiest and dealers spread all over India addressing small segments and retail market. The industry is a vital part of the agriculture and industrial development of India. 

 

They are one of the leading producers of niche chemical solutions in India for agro-chemicals, pharmaceuticals, flavours and fragrance and dye and paint industry. Their business mainly comprise of manufacturing and marketing of chlorinated compounds and their derivatives. Their range of chlorinated compounds primarily includes Chlorotoluene range and Sulphur Chlorides range. In the Chlorotoluene range the primary products are Benzyl Chloride, Benzalchloride and Benzo Trichloride, Benzyl Alcohol. Their products are sold directly to customers.

 

 The Indian chemical Industry is highly heterogeneous and consists of the following major sectors: 

 


Opportunities and Threats: 

 

The Company and its business are significantly dependent upon the availability and market prices for Toluene, which by nature is very volatile and thus can adversely affect their business and financial results.

  
Besides, the availability, cost and quality of chlorine, steam and electricity have a significant impact on the working of the company. The products of the company are focused primarily on the agrochemicals, pharmaceuticals, dyes and flavours and fragrance industry and as a result, their operations are significantly influenced by the trends of the aforesaid industries. The chemical industry in India has the potential to grow to around USD 100 billion by 2010 according to KPMG's Analysis. This would imply an annual growth rate of more than 15% annually. 

 


Risk and Concerns: 

 

The company is working in a very global competitive business environment and is dependent upon few key customers; any loss of such significant customers would adversely affect the working of the company.

  
Moreover, most of the arrangements with the customers are without any commitment to future work. 

 
Termination of such arrangements could also have a substantial impact on the working of the company. 

 
Besides, exchange rate fluctuations and general economic situation could have substantial impact on the working of the company. 

 

Future Outlook: 

 

Their objective is to concentrate on better margin yielding products and exploit growing domestic and international market opportunities for these products, they have laid down the strategy to manufacture downstream products of benzyl chloride, benzaldehyde and thionyl chloride. For this purpose, they plan to manufacture a range of products primarily comprising benzyl salycilate, benzyl benzoate, cinnamic aldehydes and hexyl cinnamic aldehydes. A fully integrated facility will help them become cost effective and expand their market opportunities for their current products. These fonward integration measures are in various stages of implementation, and they plan to commercially commission the planned expansion by October, 2007. 

 

 

FIXED ASSETS:

 

·         Freehold land

·         Road and Building

·         Plant and Machinery

·         Furniture and Fixture

·         Computer

·         Vehicles

·         Intangible assets

 

 

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.40.05

UK Pound

1

Rs.78.75

Euro

1

Rs.59.39

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

63

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/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

***

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions