MIRA
INFORM REPORT
|
Report Date : |
16.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
GULSHAN POLYOLS LIMITED |
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Registered Office : |
Plot No. 762, Jhagadia Industrial Estate, District, Bharuch – 393 110,
Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20.10.2000 |
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Com. Reg. No.: |
40379 |
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CIN No.: [Company
Identification No.] |
L24231GJ2000PLC040379 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELG05217C |
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PAN No.: [Permanent
Account No.] |
AABCG3954F |
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Legal Form : |
It is a public
limited liability company. The
company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of
Calcium Carbonate and Sorbitol. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 908000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
reported as usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office/Factory : |
Plot No. 762, Jhagadia Industrial Estate, District, Bharuch – 393 110,
Gujarat |
|
Tel. No.: |
91-2645 -226044 / 309585 |
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Fax No.: |
91-2645-226045 |
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E-Mail : |
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Website : |
DIRECTORS
|
Name : |
Mr. S K Uppal |
|
Designation : |
Director |
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Date of Appointment : |
01.01.2007 |
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Name : |
Mr. I C Agarwal |
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Designation : |
Independent Director Cum Chairman |
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|
Name : |
Mr. Ajay Jain |
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Designation : |
Independent Director |
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Name : |
Dr. C K Jain |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Saurabh Mittal |
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Designation : |
Company Secretary |
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Date of Birth/Age : |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Shareholding of
promoter and Promoter Group |
|
|
|
Indian |
|
|
|
Individual / Hindu Undivided Family |
|
1442970 |
|
Bodies Corporate |
|
3090600 |
|
Public
Shareholding |
|
|
|
Institutions |
|
|
|
Financials Institutional / Banks |
|
200 |
|
Financials Institutional Investors |
|
1500 |
|
Non Institutions
|
|
|
|
Bodies Corporate |
|
717884 |
|
Individuals |
|
|
|
Individual Shareholders holding nominal Share capital up to Rs. 1 Lakh
|
|
908511 |
|
Individual Shareholders holding nominal Share capital in excess of Rs.
1 Lakh |
|
50000 |
|
Non resident Indians |
|
635 |
|
|
Total
|
6212300 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Calcium Carbonate and Sorbitol. |
GENERAL
INFORMATION
|
Bankers : |
NA |
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|
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Banking
Relations : |
Satisfactory |
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|
|
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Auditors : |
|
|
Name : |
M/s Shahid and Associates Chartered Accountants |
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|
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17500000 |
Equity shares |
Rs. 10/- each |
Rs.175.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12856150 |
Equity shares |
Rs. 10/-
each |
Rs.128.561
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 |
128.600 |
128.600 |
128.600 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
98.400 |
50.900 |
33.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
227.000 |
179.500 |
162.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
295.100 |
299.900 |
295.500 |
|
|
2] Unsecured Loans |
22.500 |
11.400 |
2.400 |
|
|
TOTAL BORROWING |
317.600 |
311.300 |
297.900 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
544.600 |
490.800 |
460.200 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
413.600 |
280.200 |
119.600 |
|
|
Capital work-in-progress |
8.500 |
112.700 |
180.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
2.300 |
2.200 |
1.900 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
64.900
|
39.400 |
48.300 |
|
|
Sundry Debtors |
132.300
|
107.000 |
103.900 |
|
|
Cash & Bank Balances |
1.700
|
1.700 |
28.400 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
17.200
|
16.600 |
40.000 |
|
Total
Current Assets |
216.100
|
164.700 |
220.600 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
83.900
|
61.700 |
51.800 |
|
|
Provisions |
12.800
|
7.900 |
10.100 |
|
Total
Current Liabilities |
96.700
|
69.600 |
61.900 |
|
|
Net Current Assets |
119.400
|
95.100 |
158.700 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.800 |
0.600 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
544.600 |
490.800 |
460.200 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
944.400 |
647.800 |
574.700 |
|
|
Other Income |
0.200 |
0.000 |
0.000 |
|
|
Total Income |
944.600 |
647.800 |
574.700 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
65.300 |
28.700 |
20.800 |
|
|
Provision for Taxation |
12.300 |
6.200 |
5.900 |
|
|
Profit/(Loss) After Tax |
53.000 |
22.500 |
14.900 |
|
|
|
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Selling & Administrative Expenses |
133.100 |
96.700 |
88.500 |
|
|
Raw Material Consumed |
365.900 |
287.000 |
234.900 |
|
|
Purchases made for re-sale |
118.400 |
78.600 |
71.500 |
|
|
Increase/(Decrease) in Finished Goods |
[5.800] |
3.600 |
1.300 |
|
|
Miscellaneous Expenses |
0.500 |
0.200 |
0.200 |
|
|
Interest & Financial Charges |
20.500 |
12.200 |
12.100 |
|
|
Power & Fuel |
56.600 |
30.200 |
37.700 |
|
|
Employee Cost |
19.600 |
11.400 |
10.000 |
|
|
Depreciation & Amortization |
55.700 |
21.300 |
19.100 |
|
|
Manufacturing Expenses |
114.800 |
77.900 |
78.600 |
|
Total Expenditure |
879.300 |
619.100 |
553.900 |
|
QUARTERLY RESULTS
|
Year |
30.09.2007 |
30.06.2007 |
|
Type
|
2nd
Quarter |
1st
Quarter |
|
Sales Turnover |
224.900 |
244.10 |
|
Other Income |
0.000 |
0.000 |
|
Total Income |
224.900 |
244.100 |
|
Total Expenditure |
191.500 |
211.900 |
|
Operating Profit |
33.400 |
32.200 |
|
Interest |
5.000 |
9.400 |
|
Gross Profit |
28.400 |
22.800 |
|
Depreciation |
7.700 |
9.700 |
|
Tax |
2.500 |
1.600 |
|
Reported PAT |
17.600 |
10.500 |
KEY RATIOS
|
Year |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
1.55 |
1.78 |
1.61 |
|
Long Term Debt-Equity Ratio |
1.12 |
1.41 |
1.23 |
|
Current Ratio |
1.12 |
1.49 |
1.91 |
|
TURNOVER RATIOS |
|||
|
Fixed Assets |
1.65 |
1.67 |
2.00 |
|
Inventory |
18.11 |
14.77 |
11.74 |
|
Debtors |
7.89 |
6.14 |
5.53 |
|
Interest Cover Ratio |
4.19 |
3.35 |
2.72 |
|
Operating Profit Margin(%) |
14.98 |
9.60 |
9.05 |
|
Profit Before Interest And Tax Margin(%) |
9.09 |
6.31 |
5.72 |
|
Cash Profit Margin(%) |
11.51 |
6.76 |
5.92 |
|
Adjusted Net Profit Margin(%) |
5.61 |
3.47 |
2.59 |
|
Return On Capital Employed(%) |
16.60 |
8.61 |
8.52 |
|
Return On Net Worth(%) |
50.12 |
30.65 |
24.65 |
LOCAL AGENCY
FURTHER INFORMATION
DIRECTOR REPORTS:
2006-07 IN RETROSPECT:
The
Sales and Other Income for the financial year under review were Rs.944.88
millions Previous year Rs. 647.779 millions) showing a substantial growth of
over 45%. The Net Profits after tax were Rs. 5295.500 millions (Previous year
Rs. 2249.300 millions) showing a substantial growth of over 135%.
The
Depreciation for the year was Rs. 55.737 millions (Previous year Rs. 21.327
millions). The Cash accruals were Rs. 103.380 millions (Previous year Rs 38.508
millions). The capacity utilization during the year was over 110% of the
capacity. The company looks forward to expand the capacities of Sorbitol to
meet the increased demand in the next financial year.
An amount of Rs. 3.000 millions has been transferred to General Reserve Account.
There
have been no material changes and commitments affecting the financial position
of the company occurred between the end of the financial year and the date of
this report. The information about conservation of energy, technology
absorption, foreign exchange earnings and outgo etc has been incorporated in
Annexure 1 forming part of this report.
The company has no subsidiary or holding company. During the year the business
and affairs of the company have been carried out in its normal course and no
significant events have taken place, which are harmful to the business of the
company. The company commissioned a 3 MW captive power plant to meet it power
requirement and to become self reliant in energy requirement. Further, the
company commenced the commercial production of starch, which is the basic raw
material for producing sorbitol. Starch being the basic raw material for other
related products/by products, the company also set up the facilities for
production of Liquid glucose and commenced the commercial operations thereof
during the year. The overall integration of operations coupled with captive
generation of power savings and additional contribution from by-products etc
have improved the profitability margins of the company. There was no buy-back
scheme of shares taken up by the company during the year.
PROJECT OF BACKWARD INTEGRATION
and CAPTIVE POWER PLANT:
The
company had earlier taken up a project for backward integration to produce the
basic raw material i.e. Starch and a captive power plant of 3 MW. After some
time and cost over run in the completion of the project, the power plant and
starch plant were commissioned during the year and the commercial production of
starch also commenced after obtaining necessary approvals from authorities. The
company has now become self reliant in power and captive consumption of starch
would enable the company to improve margins substantially.
CONTRIBUTION TO EXCHEQUER:
The
company has paid substantial amounts in excess of Rs. 155.200 millions to the,
Exchequer during the year in the form of Excise Duty, Custom Duty, Direct and
Indirect taxes, levies, cess etc.
MANAGEMENT'S DISCUSSION and
ANALYSIS:(Forming
part of Director's Report)
The Management
of Gulshan Polyols Limited is pleased to present its analysis report covering
the performance of the company for the year 2006-07 and the outlook for the
future. The report contains forward looking statements, ,which may be
identified by their use of words like plans, expects, anticipates, believes,
intends, projects, estimates or other words of similar meaning. All statements
that address expectations or projections about the future, including but not
limited to statement about the company's strategy for growth, product
development, market position, expenditures and financial results are forward
looking statements. Forward-looking statements are based on certain assumptions
and expectations of future events. The company cannot guarantee that these
assumptions and expectations are accurate or will be realized.
The company's actual results, performance or achievements could thus differ
materially from those projected in any such forward-looking statements. The
company assumes no responsibility to publicly amend, modify or revise any
forward looking statements, on the basis of any subsequent development,
information or events.
In 2006-07, the economic conditions improved over the pervious year and the
year witnessed stable industrial climate. The company has achieved a
significant growth in terms of volumes and value and it would make all efforts
to maintain the growth in future years, The company has identified cost cutting
area being its thrust area to compete with global competition and maintain its
market leadership.
Business Environment:
The
Indian economy witnessed a broad based and impressive growth rate during
2006-07 in line with the previous year. However the sharp increase in inflation
rate was a serious concern for government and RBI. The sequential increases in
bank and repo rates by FIBI resulted in increase in interest rates by banks
followed by rupee appreciation vis-a-vis US dollar lead to uncertainty of
economic growth. However the sharp increase in tax collections by Govt assured
the business community about the growth story of the country. The country's
balance of trade and foreign reserves were at historic high and were very
comfortable which may ultimately led to total rupee convertibility in near
future. Almost all the sectors of the industry and economy displayed high
growth resulting into very positive investment atmosphere all around. Though,
the year end showed hardening of interest rates and correction mood of sensex,
real estate and bullion market, the overall views are positive and growth
oriented. The monsoon during 2007-08 is predicted to be at schedule, which may
further fuel the growth run.
Industrial Structure and
Developments:
The
Company produces Sorbitol which is a water soluble polyhydric alcohol having
sweet taste and high stability besides properties of humectancy and
plasticizing. It finds application as input material in various industrial
sectors such as Tooth Paste, Pharmaceuticals, Vitamin-C, Cosmetics, Paper and
Paints etc. The company is the single largest producer of Sorbitol in the
country in the organized sector, which meets the requirements of all the
customers in the various industries, and the customer's list includes top MNCs
in Tooth Paste, Pharmaceuticals, Paper and Paints etc.
The company achieved the capacity utilization of over 110% of the capacities.
The consumer industry i.e. Tooth Paste, Pharma, cosmetic, paint etc have shown
growth which may lead to further improved business and margins to the company.
The Sales and Other Income for the financial year under review were Rs.
944.588 millions (Previous year Rs.
647.779 millions) showing a substantial growth of over 45%. The Net Profits
after tax were Rs. 52.955 millions (Previous year Rs. 22.493 millions) showing
a substantial growth of over 135%. The Depreciation for the year was Rs. 55.737
millions (Previous year Rs.21.327 millions). The Cash accruals were Rs. 103.380
millions (Previous year Rs.3850.800 millions). The project of backward
integration and captive power plant has been completed and commercial
production also commenced during the year. It would reduce the cost of
production and improve the profitability of the company.
Opportunities and Threats:
The per
capita consumption of Sorbitol in the country is less than 1/20th of the world
consumption. The future of the industry lies in the increase of overall demand
by expanding the usage of the product and reversal of the slowdown in the
economy The quality products of the company are well accepted in the market and
the company has completed the project for backward integration and captive
power plant, which would result into significant cost saving for the company
and reducing the costs to compete the market. The new usage of Sorbitol by
replacing the existing alternate mix such as Glycerin has widely opened up the
growth of the industry. The company faces the threats that some users of
Sorbitol are changing their formulation to observe some of the quantities of
cheaper or alternate material. Technically, this phenomenon is their strategy
to cut their costs but it would not continue for long time at the cost of and
quality of the product.
Since, the company is operating at its installed capacity, it has to increase
the capacities to meet growing demand of the product in coming future.
Product wise performance:
The
company produces only one product i.e. Sorbitol. The company achieved a
capacity utilization of over 110% during the year. The company produced a total
of 33149.30 MT of Sorbitol against the production of 30969.90 MT during
2005-06. The sales were 32954.055 MT against sales of 31334.76 MT during
2005-06. The company has taken necessary steps to reduce operational costs such
as reduction in power costs, higher yield etc, which would make the product
more competitive. The customer has shown tremendous confidence in the product
quality and service, which the company would continue to consider its top
priority.
Outlook:
The company is optimistic about its growth prospects in the future.
Economic
environment provides an opportunity to improve the business climate. Indian
economy with its strong macro economic fundamentals, positive investment
climate, encouraging corporate performance and continued institutional support
by foreign institutional investor, is poised for a higher growth. The outlook
for Sorbitol industry is encouraging and dependent upon the growth of the
consumer industry.
Improvement
in overall economic scenario and replacement of other costly products by
Sorbitol holds the key for steep growth of Sorbitol industry.
The
growth in industrial output and increase in investment in core and
infrastructure sector should improve the sentiments of Economy. The growth in
other sectors would also follow which in turn would increase the prospects of
the company. Together with the GDP growth of about 8%, the company expects a
reasonably good demand growth from various quarters, which in turn would lift
the company's future.
Financial and Operational
Performance:
The
Sales and Other Income for the financial year under review were Rs.944.588
millions (Previous year Rs. 647.779 millions showing a substantial growth of
over 45%. The Net Profits after tax were Rs. 52.955 millions (Previous year Rs. 22.493 millions) showing
a substantial growth of over 135%.
The
Depreciation for the year was Rs. 55.737 millions (Previous year Rs. 21.327
millions). The Cash accruals were Rs. 103.380 millions (Previous year Rs 38.508
millions). The capacity utilization during the year was over 110% of the
capacity.
The company also earned other income of Rs. 0.180 millions being recovery of
insurance claim. The company spent an amount of Rs. 2.454 millions on Repairs
and Maintenance of Plant and Machinery and building, which were necessitated to
maintain and upgrade the life of the equipments. The resource mobilization of
the company during the year has been from cash accruals, existing cash and cash
equivalent, unutilized limits from bank, short term loan from bank etc. The
company has repaid institutional dues in time and without delay. The company
has in compliance of accounting standard 22 issued by ICAI, provided the total
deferred tax liability up to 31st March 2007 including for earlier years works
out to Rs. 18.655 millions.
WEBSITE DETAILS:
The Company is engaged in manufacturing of ‘Sorbitol-70%’. Sorbitol, a starch derivative, sweet in taste, finds wide range application, the major uses in dentrifice, cosmetic, Pharma, Vitamin-C, food products etc. The plant was set-up in 1996 in the State of Gujarat in the parent company i.e. Gulshan Sugars and Chemicals Limited. Subject was incorporated in 2000, to take over the Sorbitol project from GSCL in terms of scheme of Arrangement/ demerger. The plant is equipped with International Quality Equipment and Technology having the largest capacity in India. The Plant is capable to produce Crystalline and Non–crystalline grade of Sorbitol which is a unique feature as compared to other domestic plants. The present installed capacity is 30000 Tones of Sorbitol. Subject has an accreditation as ISO 9001:2000 certification
CMT REPORT
(Corruption, Money Laundering and 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.39.27 |
|
UK Pound |
1 |
Rs.77.33 |
|
Euro |
1 |
Rs.57.51 |
SCORE and RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 and 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 and 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 |
|