MIRA
INFORM REPORT
|
Report Date : |
29.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
P. I. DRUGS AND
PHARMACEUTICALS LIMITED |
|
|
|
|
Registered Office : |
116, Vardhaman Industrial Complex, Lai Bahadur Shastri Marg, Thane
(West) - 400 601, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
28.06.1985 |
|
|
|
|
Com. Reg. No.: |
11-36685 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L99999MH1985PLC036685 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
PNEP10307D /
PNEP08520B |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACV1501G /
AABCP5899A |
|
|
|
|
Legal Form : |
A public limited liability
company. The company’s shares are listed on the Stock Exchange. |
|
|
|
|
Line of Business : |
Manufacturing and
Trading in Bulk Drugs |
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 1300000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
established company having satisfactory track. Trade relations are fair.
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 : |
116, Vardhaman
Industrial Complex, Lai Bahadur Shastri Marg, Thane (West) - 400 601, Maharashtra, India |
|
Tel. No.: |
91-22-25303357 /
25478601 |
|
Fax No.: |
91-22-25303282 |
|
Email : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
W-152, MIDC, Tarapur, Boisar, District Thane |
|
|
|
|
Factory 2 : |
B-32, MIDC, Mahad, District Raigad |
|
|
|
|
Factory 3 : |
A-68, Additional Ambernath, MIDC Industrial Area, Ambernath (East), District
Thane |
|
|
|
|
Factory 4 : |
Plot No. W-150/151, W-136-141, MIDC, Tarapur, Boisar, Thane |
|
|
|
|
Factory 5 : |
A – 14, MIDC [Phase - I], Dombivli [East], Thane |
|
|
|
|
Research & Development Center : |
Bangalore & Kumta |
DIRECTORS
|
Name : |
Mr. Bharat Merchant |
|
Designation : |
Chairman |
|
Date of
Birth/Age : |
58 Years |
|
Qualification
: |
B.A. (HONS), L.L.M. (Mumbai), L.L.M. (Cornell) |
|
Expertise : |
Sole proprietor of Thakordas & Madgavkar, a well reputed firm of
Advocate and Solicitors |
|
Other Directorship : |
One |
|
|
|
|
Name : |
Mr. L. N. Bhat |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Aditya R. Desai |
|
Designation : |
Director |
|
Date of
Birth/Age : |
29 Years |
|
Qualification
: |
B. Com. |
|
Expertise : |
Second generation entrepreneur. |
|
|
|
|
Name : |
Mr. S. N. Jagannath |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. S. V. Shanbhag |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mrs. Bina Shah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. R. Ravishankar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. Balasubramanian |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Gopakumarg Nair |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mrs. Lata Varshney |
|
Designation : |
Company Secretary |
SHAREHOLDING
PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters &
Persons Acting in concert |
2221394 |
29.62 |
|
Other Directors,
their relatives |
100000 |
1.33 |
|
Bodies Corporate
(Domestic/Trusts |
3252449 |
43.37 |
|
Banks / Mutual
funds/ Financial Institutions (FIs) |
|
|
|
Foreign
Institutional Investors (Flls) |
52849 |
0.70 |
|
Non-Resident Individuals
(NRIs)/Foreign Corporate Bodies/Overseas Corporate Bodies (OCBs)/ Foreign
Banks |
14118 |
0.19 |
|
Resident
Individuals |
1844176 |
24.59 |
|
In transit |
15017 |
0.20 |
|
TOTAL |
7500003 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
Trading in Bulk Drugs |
|
|
|
|
Products : |
|
PRODUCTION STATUS
|
Particulars |
Unit |
|
Actual
Production |
|
Bulk Drugs |
MT |
|
169,243 |
Installed Capacity [OWN] : 150 MT
GENERAL
INFORMATION
|
No. of Employees : |
200 |
||||||||||||
|
|
|
||||||||||||
|
Bankers : |
|
||||||||||||
|
|
|
||||||||||||
|
Facilities : |
|
||||||||||||
|
|
|
|
Banking Relations
: |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
L. T. Jadav and Company Chartered Accountants |
|
|
|
|
Associates/Subsidiaries : |
Elixir Chemicals Private Limited 1, Chintamani Apartments, Mithagar Road, Mulund (East), Mumbai - 400
081 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
15000000 |
Equity Shares |
Rs. 10/- each |
Rs. 150.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7500003 |
Equity Shares |
Rs. 10/- each |
Rs. 75.000
Millions |
|
|
|
|
|
|
|
Monies Pending Allotment |
|
|
|
|
[Being amount received against 800000 Share
Warrants] |
|
Rs. 3.760
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 |
75.000 |
65.000 |
119.546 |
|
|
2] Monies Pending Allotment |
3.760 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
238.008 |
133.079 |
95.557 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
316.768 |
198.079 |
215.103 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
42.262 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
42.262 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
14.184 |
12.484 |
11.018 |
|
|
|
|
|
|
|
|
TOTAL |
373.214 |
210.563 |
226.121 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
134.754 |
118.901 |
108.177 |
|
|
Capital work-in-progress |
3.759 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
90.255 |
11.507 |
0.923 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
46.025
|
18.778
|
17.037 |
|
|
Sundry Debtors |
77.159
|
80.959
|
55.636 |
|
|
Cash & Bank Balances |
58.510
|
20.528
|
28.479 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
49.498
|
23.929
|
61.008 |
|
Total Current Assets |
231.192
|
144.194
|
162.160 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
86.746
|
49.509
|
22.405 |
|
|
Provisions |
0.00
|
14.530
|
22.734 |
|
Total Current Liabilities |
86.746
|
64.039
|
45.139 |
|
|
Net Current Assets |
144.446
|
80.155
|
117.021 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
373.214 |
210.563 |
226.121 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
369.711 |
300.371 |
260.835 |
|
|
Other Income |
31.284 |
6.497 |
-- |
|
|
Total Income |
400.995 |
306.868 |
260.835 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
90.678 |
54.169 |
47.448 |
|
|
Provision for Taxation |
13.974 |
16.647 |
16.744 |
|
|
Profit/(Loss) After Tax |
76.704 |
37.522 |
30.704 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
Total Earnings |
93.572 |
112.422 |
77.936 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
29.772 |
21.117 |
|
|
|
Capital Goods |
0.286 |
0.944 |
|
|
Total Imports |
30.058 |
22.061 |
10.084 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Direct Manufacturing Cost |
258.608 |
|
|
|
|
(Increase) / Decrease in
Stock |
[3.744] |
2.229 |
|
|
|
Employee cost |
20.943 |
13.531 |
|
|
|
Administrative Expenses |
10.909 |
6.709 |
213.388 |
|
|
Selling & Distribution
Expenses |
5.678 |
4.342 |
|
|
|
Research & Development
Expenses |
4.268 |
2.080 |
|
|
|
Finance Cost |
2.804 |
0.354 |
|
|
|
Depreciation |
10.851 |
5.350 |
|
|
Total Expenditure |
310.317 |
252.697 |
213.388 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2007 |
30.09.2007 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Sales Turnover |
|
111.400
|
155.500
|
|
Other Income |
|
0.200
|
0.100
|
|
Total Income |
|
111.600
|
155.600
|
|
Total Expediture |
|
93.800
|
126.800
|
|
Operating Profit |
|
17.800
|
28.800
|
|
Interest |
|
1.600
|
4.600
|
|
Gross Profit |
|
16.200
|
24.200
|
|
Depreciation |
|
3.000
|
4.500
|
|
Tax |
|
1.600
|
4.400
|
|
Reported PAT |
|
11.600
|
15.300
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
19.13
|
12.23 |
11.77 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
24.53
|
18.03 |
18.19 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
24.78
|
20.59 |
17.55 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.29
|
0.27 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.41
|
0.32 |
0.21 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.67
|
2.25 |
3.59 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Visitha
Traders and Finance Limited, has amalgamated P L Drugs and Pharmaceuticals
Limited with itself. The High court has sanctioned the Scheme of Amalgamation
and the same was filed with ROC by the company on November 12, 2003.
THE
YEAR UNDER REVIEW:
During the year under review the company achieved sales of Rs.369.700 Millions,
an increase of 23% over the previous year. Excluding the exceptional item, the
Company's profit before tax increased 17% to Rs 62.384 Millions as, against
Rs.53.342 Millions in previous year and profit after tax increased 32% to
Rs.48.410 Millions as against Rs 36.695 Millions in the previous year. The
Earnings per Share was Rs 7.26 in 2006-07 compared to Rs 5.65 in 2005-06.
EXPORTS:
The Company's exports (inclusive of deemed exports) was Rs 104.400 Millions as
against Rs 118.800 Millions in the previous year.
FUTURE:
During the year under review initiatives have been taken to strengthen its
resources and capabilities by investment, in state of the art R&D
facilities at Kumta for development of new products and solvent recovery plant
at Mahad.
The benefits of these initiatives will be felt across the foreseeable
future.
ACQUISITION
OF COMPANY:
The Company has acquired M/s. Elixir Chemicals Private Limited in the month of
September 2006 and accordingly the said Company has become wholly owned
subsidiary of the Company during the year.
The company's wholly owned subsidiary posted a turnover of Rs 171.300 Millions
and a profit after tax of Rs 29.500 Millions. The result of the subsidiary
company is attached to the report along with statement pursuant to section 212
of the Companies Act 1956.
CHANGE IN MANAGEMENT:
On 25th January 2007 M/s. Fraxis Life Sciences Private Limited acquired 7.93%
share capital of the Company. On their request the Board of Directors of the
Company recognized them as promoters of the Company. In view of SEBI
(Substantial Acquisition of Shares & Takeover) Regulation 1997 they gave an
open offer to the shareholders that was concluded on 18th April 2007 and
consequent thereof there was a change in promoters and management of the
Company.
MANAGEMENT DISCUSSION AND ANALYSIS:
The Global Veterinary Pharmaceutical
Market:
The animal health
businesses of the major pharma companies have two parts:
·
One for food producing animals
·
One for companion animals such as dogs and cats.
Animal health
products are the tools used by veterinarians and food producers to keep animals
healthy. Animal health products include veterinary medicines, feed additives,
vaccines and other biologicals.
Total global
sales of veterinary medicines amounted to US$15 bn.
By species, the
companion animal sector accounts for 40% share of global sales. The rest of the
sales are from medication used to treat food-producing animals
Indian scenario:
India as a
developing country has very low salience of animal biologicals in the
pharmaceutical market. At present, the domestic animal health industry is
comparatively low in size as against large domestic pharmaceutical market.
The animal
biologicals market in India has the potential to surge in the next few years,
growing by nearly 20 percent per annum, resulting in a large market. On the qualitative
side, a higher level of disease awareness and externally oriented market will
bring more diseases under national control programs, thus benefiting millions
of livestock keepers in the country. Much, of course depends on the success of
the intervention programs of the government in controlling animal diseases, new
product introductions from modern biotechnology.
New Products:
APIs:
The Company is continuing its efforts on introducing new products and
intermediates and expect graded increase in revenues in the next two to three
years. The Company has tied up with one multinational Company for commercial
supply of animal health product and expects sizable volume from this product in
the corning years. The company is also discussing with various international
pharma companies for manufacturing animal health products.
Formulations:
The Company is a leading Manufacturer - Exporter of Specialised Veterinary
Formulations and specialises in manufacturing of formulation belonging to the
Anthelmintic and Anti-parasitic segment.
Customers:
The Company has added more than ten new customers during the year 2006-07
spreading different geographical areas. The Company's key customers include
some of the prestigious MNCs in pharma field.
Marketing:
The Company over the years has enhanced the confidence of both existing and
prospective Customers paving the way for the accelerated growth in future.
The Company
also operates thro marketing agents for selling its products.
Operating
Margin:
The operating margin excluding other income was higher at
20% as compared to 18% in the previous year.
Weaknesses:
* Higher dependency on matured generic products.
* Increase in input costs.
Opportunities:
With increased outsourcing by Global Pharma Companies in India, the Company
will have a lot of scope in newer areas too in this domain.
The animal
biologicals market in India has the potential to surge in the next few years,
growing by nearly 20 percent per annum, resulting in a large market.
Threats:
- Scarcity of experienced and skilled work force.
- Growing Demand for good scientists and increase in wages.
- Competition from China and Asian Countries.
Future Outlook:
- Focus on Veterinary and Anthelmintic API segment.
·
Diversification in human API segment.
·
To achieve excellence in the field of research & development
and quality product production.
·
Up-gradation of facilities to meet the local and international
regulatory requirements.
·
Entering the regulated markets like USA and Europe And strengthening
the organizational presence in these segments.
·
To increase the sales in non-regulated markets using diversified
strategies to add on the strong regulated markets.
FIXED
ASSETS
v Leasehold
Land
v Land
Development
v Factory
Building
v Investments
in Property
v Plant
& Machinery
v Furniture
& Fixtures
v Motor
Car
v Vehicle
Account
v Capital
work in progress
AS PER WEBSITE
Profile
- P I Drugs
& Pharmaceuticals Limited was established in the year 1991.
- They are
engaged in the business of Human Health & Animal Health [Veterinary].
- They enjoy
high Image for distribution in Domestic as well as International Markets.
- They export
to all major markets like Europe, South America, Australia, Asia and
Africa.
- They have a
specialized and dedicated WHO - GMP accredited manufacturing plant for the
manufacture of API's.
- They started
with the introduction of ALBENDAZOLE and has developed core competency in
chemistry of Benzimadazole in very short time.
Services
P I Drugs & Pharmaceuticals Limited offers :
- Formulations
-
Human Formulations
-
Veterinary Formulations
- Contract
Manufacturing of Formulations as per cGMP Guidelines
- Human &
Veterinary Api's
- Contract
Research Facility
- Q.A. &
Regulatory Support
Production
Formulations
- Manufacturing
unit is located at Ambernath, 65 Kms north east from Mumbai International
airport.
- The Total
Area of the premises is 5950 sq. mt.
- Part of the
premises is dedicated for manufacturing of sachets and injections namely
Diminazene Diaceturate granules & Quinapyramine Injections.
- Another
section is dedicated for manufacturing Liquid Orals & Oral powders.
- A section of
the premises is dedicated for manufacturing of Tablets/Bolus.
- Present plant
caters for the various dosage forms as follows:
-
Granules.
-
Oral Powders.
-
Oral Suspensions.
Bulk Drugs
- Manufacturing
unit is located at Mahad site in MIDC Chemical Zone, about 200 Kms from
Mumbai International airport.
- The Total Area
of the premises is 12,700 sq. mt.
- This Site has
manufacturing units with capable of manufacturing A PI's as well as
Intermediaries.
- Present Plant
Capacity is 180 tons per annum which is being upgraded by 50 %.
- P I Drugs
& Pharmaceuticals Limited has developed the skills in Chemical
Synthesis of Anthelmentic Products namely Benzimidazole.
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.39.47 |
|
UK Pound |
1 |
Rs.77.98 |
|
Euro |
1 |
Rs.57.92 |
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 |
YES |
|
--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 |
NO |
|
--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 |
|