MIRA
INFORM REPORT
|
Report Date : |
31.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
GANESH POLYTEX LIMITED |
|
|
|
|
Registered Office : |
Raipur
(Rania), Kalpi Road, District Kanpur Dehat, Uttar Pradesh |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
30.10.1987 |
|
|
|
|
Com. Reg. No.: |
9090 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L51109UP1987PLC009090 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
KNPG01196G |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACG6334N |
|
|
|
|
Legal Form : |
Public limited liability company. Company’s Shares are listed on the
Stock Exchange. |
|
|
|
|
Line of Business : |
Manufacturer of Polyester
Staple Fibre and Textured / Twisted Grey and Dyed Yarn. |
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 770000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having fine track.
Trade relations are 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 : |
Raipur (Rania), Kalpi Road, District Kanpur Dehat, Uttar Pradesh,
India |
|
Tel. No.: |
91-512-3292233 / 2674183 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head
Office / Administrative Office : |
113/216-B,
Swaroop Nagar, Kanpur - 208002, Uttar Pradesh, India |
|
Tel. No.: |
91-512-2555504 / 05 / 06 / 07 / 08 |
|
Fax No.: |
91-512-2555293 |
|
E-Mail : |
|
|
|
|
|
Factory 2 : |
Plot No.6, Sector – 2, I.I.E. Pant Nagar, Rudrapur (Udham
Singh Nagar), Uttaranchal (India) |
|
Tel. No.: |
91-5944-239242 |
|
|
|
|
Sales
& Marketing Offices : |
|
DIRECTORS
|
Name : |
Mr. Shyam S. Sharma |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Sharad Sharma |
|
Designation : |
Joint Managing Director |
|
|
|
|
Name : |
Mr. V. D. Khandelwal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. K. Kabra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Anoop Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Brij Mohan Agarwal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pradeep Kumar Goenka |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Gopal Agarwal |
|
Designation : |
Chief Finance Officer |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Polyester Staple Fibre and Textured / Twisted Grey and Dyed Yarn. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS
|
Particulars |
Unit |
|
Installed
Capacity |
Actual
Production |
|
Texturised / Twisted Grey & Dyed Yarn, Fabrics" |
Kgs. |
|
1800000 |
1718972 |
|
Synthetic Waste Processing |
Kgs. |
|
3000000 |
-- |
|
Polyester Staple Fibre |
Kgs. |
|
15000000 |
9494678 |
|
Scrap & Waste |
Kgs. |
|
-- |
-- |
|
Non Woven Fabrics |
Mtr. |
|
-- |
-- |
GENERAL
INFORMATION
|
Suppliers : |
1. Apoorva Industries 2. H. R. Polymers Unit-2 3. Shanti Paper Products 4. Arudutta Triotex Enggs. 5. Sohni Packagers Private Limited 6. Fabtex Industries 7. Surya Spindle 8. Laxmi Narayan Vishamber Nath 9. Morwal Fabrics Private Limited 10. Unique Wire Industries |
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Bankers : |
·
State Bank of India ·
State Bank of Bikaner and Jaipur ·
Allahabad Bank
|
||||||||||||||||||
|
|
|
||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Mehrotra Rakesh Kumar and Company Chartered Accountants |
|
Address : |
Kanpur,
Uttar Pradesh, India |
|
|
|
|
Associates/Subsidiaries : |
|
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
240,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 240.000 Millions |
|
4,50,000 |
Preference Shares |
Rs. 100/- each |
Rs. 45.000 Millions |
|
|
Total |
|
Rs. 285.000
Millions |
Issued and Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
93,65,000 |
Equity Shares |
Rs. 10/- each |
Rs. 93.650
Millions |
|
50,000 |
10% Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 5.000
Millions |
|
|
Total |
|
Rs. 98.650 Millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
93,65,000 |
Equity Shares |
Rs. 10/- each |
Rs. 93.650
Millions |
|
50,000 |
10% Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 5.000
Millions |
|
|
Total |
|
Rs. 98.650 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 |
98.650 |
98.650 |
94.000 |
|
|
2] Share Application Money |
27.500 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
66.395 |
49.225 |
32.300 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
192.545 |
147.875 |
126.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
244.992 |
93.631 |
109.700 |
|
|
2] Unsecured Loans |
34.157 |
48.271 |
32.600 |
|
|
TOTAL BORROWING |
279.149 |
141.902 |
142.300 |
|
|
DEFERRED TAX LIABILITIES |
34.115 |
23.951 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
505.809 |
313.728 |
268.600 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
304.082 |
163.324 |
159.100 |
|
|
Capital work-in-progress |
10.891 |
20.178 |
0.600 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
154.761
|
113.303 |
107.700 |
|
|
Sundry Debtors |
71.721
|
50.553 |
37.900 |
|
|
Cash & Bank Balances |
11.108
|
7.790 |
7.000 |
|
|
Other Current Assets |
0.958
|
0.356 |
0.000 |
|
|
Loans & Advances |
27.403
|
11.821 |
40.500 |
|
Total
Current Assets |
265.951
|
183.823 |
193.100 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
68.364
|
49.339 |
82.400 |
|
|
Provisions |
6.923
|
5.123 |
3.400 |
|
Total
Current Liabilities |
75.287
|
54.462 |
85.800 |
|
|
Net Current Assets |
190.664
|
129.361 |
107.300 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.172 |
0.865 |
1.600 |
|
|
|
|
|
|
|
|
TOTAL |
505.809 |
313.728 |
268.600 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
626.744 |
519.437 |
506.600 |
|
|
Other Income |
3.289 |
1.981 |
2.000 |
|
|
Total Income |
630.033 |
521.418 |
508.600 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
29.690 |
25.187 |
15.000 |
|
|
Provision for Taxation |
10.797 |
10.539 |
14.200 |
|
|
Profit/(Loss) After Tax |
18.893 |
14.648 |
0.800 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
95.761 |
86.397 |
NA |
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
13.561 |
19.680 |
NA |
|
|
Stores & Spares |
37.720 |
0.207 |
NA |
|
Total Imports |
51.281 |
19.887 |
NA |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material
Consumed |
428.050 |
338.721 |
303.700 |
|
|
Payments to
& Provisions For Employees |
23.524 |
17.800 |
18.500 |
|
|
Manufacturing,
Administrative and Selling Expenses |
121.002 |
108.382 |
132.700 |
|
|
Interest &
Finance Expenses |
22.319 |
18.575 |
22.800 |
|
|
Increase / (Decrease) in Stocks |
[12.605] |
[1.205] |
1.400 |
|
|
Depreciation |
0.000 |
0.000 |
14.500 |
|
Total Expenditure |
582.290 |
482.273 |
493.600 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
229.600
|
251.400
|
283.500
|
|
Other Income |
0.800
|
0.500
|
0.400
|
|
Total Income |
230.400
|
251.900
|
283.900
|
|
Total Expenditure |
204.700
|
229.300
|
249.100
|
|
Operating Profit |
25.700
|
22.600
|
34.800
|
|
Interest |
11.000
|
4.200
|
12.300
|
|
Gross Profit |
14.700
|
18.400
|
22.500
|
|
Depreciation |
8.600
|
8.700
|
9.000
|
|
Tax |
0.200
|
0.200
|
5.300
|
|
Reported PAT |
4.200
|
5.900
|
8.500
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
1.35 |
1.04 |
1.21 |
|
Long Term Debt-Equity Ratio |
0.50 |
0.28 |
0.46 |
|
Current Ratio |
0.94 |
1.01 |
1.06 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed Assets |
1.64 |
1.76 |
1.67 |
|
Inventory |
4.68 |
4.71 |
4.66 |
|
Debtors |
10.04 |
11.42 |
15.83 |
|
Interest Cover Ratio |
2.33 |
2.35 |
1.99 |
|
Operating Profit Margin(%) |
11.18 |
11.10 |
11.82 |
|
Profit Before Interest And Tax
Margin(%) |
8.30 |
8.40 |
8.96 |
|
Cash Profit Margin(%) |
5.90 |
5.50 |
3.10 |
|
Adjusted Net Profit Margin(%) |
3.02 |
2.81 |
0.24 |
|
Return On Capital Employed(%) |
14.19 |
15.72 |
16.41 |
|
Return On Net Worth(%) |
10.90 |
11.06 |
0.99 |
LOCAL AGENCY
FURTHER INFORMATION
OPERATIONS
During the year under review, the Company registered an increase of 20.55% in
its Total Turnover, which rose to Rs. 626.825 Millions in 2006-07 from Rs.
519.978 Millions in 2005-06. The Profit after Tax during the year, also was
placed at Rs.18.893 Millions as against Rs.14.648 Millions in the preceding
year, recording an increase of 28.98%. This increase in Turnover and
profitability has been primarily due to improved production efficiencies at
Kanpur unit as well as on account of partial working for two months of
expansion project of the Company at Rudrapur, Uttarakhand. During the year
under review, the Export sales also registered growth which stood at Rs.95.761
Millions as against Rs. 86.397 Millions in the preceding year.
The performance of the Company during the Current Year continues to be
encouraging and barring unforeseen circumstances, the Directors expect the
Company to achieve improved results during the year.
PROJECTS
The Directors are pleased to report that the Company's new unit for manufacture
of Recycled Polyester Staple Fibre at Pantnagar, Uttarakhand with an installed
capacity of 7200 TPA, has commenced commercial production w.e.f. is' February,
2007. The Company is in the process of further expanding the capacity of its
Rudrapur unit. You will also be pleased to note that the Rudrapur unit has been
accredited with ISO 9001:2000 Certification during the year.
FINANCE
The Directors are pleased to report that the Company had earlier repaid all the
dues and liabilities of Banks/Financial Institutions during the year 2005-06.
For meeting the financial requirements of expansion project at Rudrapur and
also for additional financial requirements at Kanpur unit, the Company raised
Rs. 100.600 Millions as Term loans and Rs. 37.500 Millions as Working Capital
facilities from Banks during the year under review.
Thereafter,
the Company has also raised an amount of Rs. 40.000 Millions by issue of
4,00,000 Preference Shares of Rs. 100 each to the Promoters and their
associates on preferential basis.
MANAGEMENT DISCUSSION AND ANALYSIS
Industry Structure & Development
India is a
country with rich design and textile heritage. The Textile Industry occupies a
unique place in our country, as a self-reliant industry, from the production of
raw materials to the delivery of finished products, with substantial value
addition at each stage of processing. One of the earliest to come into
existence in India, it accounts for 14% of the total Industrial production,
contributes to nearly 300% of the total exports and is the second largest
employment generator after agriculture.
The textile
sector in India is showing renewed enthusiasm. The textile sector, which was
considered as a 'sunset sector' earlier, has emerGed as a sunrise sector within
the last three years because of the continued government support. The sector
has attracted more than Rs. 640000 Millions investments within these three
years. The man-made fibre sector is likely to be a substantial beneficiary of
this trend, given the multifunctional quality of polyester, firm cotton prices
and better affordability and acceptance of man-made fibre products.
Government is
taking initiatives to recognize the Textile industry as a key thrust area. In
the Union Budget 2006-07, the excise duty on all man-made fibres and yarns was
reduced from 160o to 80,'0. In order to further encourage this industry, in the
Union Budget 2007-08, the customs duty on polyester fibres and yarns has been
reduced from 100o to 7.5%.
Consequently,
the customs duty on raw materials such as DMT, PTA and MEG will also be reduced
from 10% to 7.5%. As the world trade barriers are progressively dismantled and
the global markets open further, India and China have become the global hubs
for the production of Polyester Fibre and Yarn, contributing over 65% of global
capacity.
Opportunities and Threats:
Indian economy,
an emerging economic power on the global map, is in the take-off stage of its
economic growth. In a robust demonstration of its nascent strength, the Indian
economy has achieved a GDP growth of 90% in 2005-06 and 9.2% in 2006-07. The
financial year 2006-07 presented the Company and the entire textile industry
with significant opportunities and challenges in both domestic and global
markets. In the domestic market, the Company benefited from a buoyant demand
scenario, aided by strong performance of the economy. Export markets too, were
upbeat with moving out of high-cost capacities from the developed economies. On
the other hand, there were greater challenges in maintaining competitiveness
and quality, as fuel prices continued to be an all time high and appreciation
in Rupee eroded the margins.
Internal
challenges include scalability of operations, supply chain management,
effective integration of the various sectors within the industry, quality of
infrastructure, rigid labour laws, etc. The opportunities are substantial, as
strong GDP growth and emergence of a large middle class segment signals
enhanced buying power which will fuel the further growth of Polyesters.
The Company's
products are well accepted in the domestic as well as export market. Stringent
controls involving methods to check quality and a highly competent technical
team ensures that all products maintain the highest standards.
Outlook
The textile industry is striving hard to improve quality, productivity and
efficiency and introducing global benchmark with the support of modern
technology. The entrepreneurs and existing players are expanding capacities and
adopting strategies addressed to growing consumer class. The textile industry
in India is poised for further growth, expected to be rapid and massive, in
anticipation of which the Company has set up a new unit with the capacity of
7200 TPA for manufacture of Regenerated Polyester Staple Fibre (RPSF) at Pantnagar,
Uttarakhand, which has commenced production during the year.
The Company is confident of leveraging its consolidated and modern operations
as well as the goodwill that it enjoys in the domestic and global markets for a
better performance in 2007-08. Hence, our outlook for the next financial year
is optimistic.
Fixed Assets
- Land and Site Development
- Leasehold Land
- Building
- Plant and Machinery
- Electric Installation
- Furniture and Fixture
- Office Equipments
- Vehicles
AS PER WEBSITE
Profile
Subject
was established in the year 1988. The current paid up capital of the company is
US$ 2.3 million and the turnover of the company is US$ 50 million per annum.
There are around 850 employees in the company.
Subject
has two manufacturing units to produce Polyester Staple Fiber; one unit is
located at Kanpur, an Industrial city of the state of U.P. in Northern India
with a production capacity of 1400 mt. per month, and the second unit is
located at Rudrapur, an Industrial city of the state of Uttaranchal in Northern
India with a production capacity of 1800 mt. per month.
The
fibres produced by subject have been well accepted in the International market
due to good consistent quality and timely execution of the orders.
The
Dope Dyed coloured fibres produced by subject enjoys high grade of
washing/light fastness, consistency and variety of shades.
Subject
is selling its products in Indian/Overseas market through its dedicated
customer friendly marketing team.
The
company has appointed Dealers / Agents in Indian / Overseas Market to have
broad base marketing.
Subject
is already exporting its products to over 20 countries including USA and EU
countries.
Management
The day to day affairs are being looked after
by Mr. Shyam S. Sharma , the qualified and experienced executives. Mr.
Shyam S. Sharma is a much experienced textile technocrat having management
experience of over 30 years.
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.39.43 |
|
UK Pound |
1 |
Rs.78.45 |
|
Euro |
1 |
Rs.58.26 |
SCORE & 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 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--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 |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
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 |
|