MIRA
INFORM REPORT
|
Report Date : |
02.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
BALMER LAWRIE AND COMPANY LIMITED |
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Registered Office : |
21, Netaji Subhas Road, Kolkata – 700 001, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
18.02.1924 |
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Com. Reg. No.: |
21-4835 |
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CIN No.: [Company
Identification No.] |
L15492WB1924GOI004835 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALB00200E |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufactures
industrial packaging, barrels and drums, LPG cylinders, greases and
lubricants, leather chemicals, functional additives and marine freight
containers. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 14000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
It is an old and well established and reputed company. The company’s major products are steel drums and barrels and Grease and Lubricants. The company’s track are fine. Trade relations are fair. Payments are correct and as per commitments. The company can be considered good for business dealings. |
LOCATIONS
|
Registered Office / Corporate Office : |
Balmer Lawrie House, 21, Netaji Subhas Road, Kolkata – 700
001, West Bengal, India |
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Tel. No.: |
91-33-22225322 / 5314 / 2222 5218 |
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Fax No.: |
91-33-2248 3768 / 4558 / 2243 4477 / 4478 / 4479 |
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E-Mail : |
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Website : |
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Branches : |
Located at Ranipat, New Delhi, Mathura, Lucknow, Ahmedabad, Baroda, Silvassa, Mumbai, Cochin, Trivendram, Hyderabad, Bangalore, Chennai, Coimbatore, Kolkata, Vizag and Bhubaneswar. |
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Overseas
Offices : |
UK and Russia |
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SBU-Industrial Packaging : |
149, Jackeria Bunder Road
Sewree, Mumbai - 400 015, Maharashtra, India |
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Tel. No.: |
91-22-2413 2421 |
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SBU-Greases &
Lubricants: |
P-43, Hide Road
Extension, Kolkata-700 088, West Bengal, India |
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Tel. No.: |
91-33-24505306 |
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SBU-Leather Chemicals : |
32, Sattangadu Village,
Thiruvottiyur, Manali Road, Chennai-600 088, Tamil Nadu, India |
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Tel. No.: |
91-44-594 1456 |
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SBU-Travel & Tours |
4th Floor, Core 8, Scope Complex, 7 Lodhi Road, New Delhi
- 110 003 |
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Tel. No.: |
91-11-2436 0535 |
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SBU- Logistics Services |
21, Netaji Subash Road, Kolkata -700001, West Bengal, India |
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Tel No.: |
91-33-2213 4644 |
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SBU- Engineering
& Technology Services : |
21, Netaji Subash Road,
Kolkata -700001, West Bengal, India |
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91-33-2213 4642 |
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SBU- Container
Freight Station : |
Sector -7, Plot No 1, Dronagiri Road, JNPT Township, Navi
Mumbai - 400 707, Maharashtra, India |
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Tel No.: |
91-22-72 40671 |
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Other Offices |
Located at : Cargo Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kanpur, Karur, Kochi, Kolkata, Lucknow, Mumbai, Pune, Tiruvananthapuram, Tuticorin, Vadodara and Visakhapatnam Grease &
Lubricants Chennai, Kolkata, Mumbai and Silvassa Industrial Packaging Chennai, Kolkata, Mathura, Mumbai, Panipat and Silvassa International
Business Kolkata and Mumbai Leather Chemicals Chennai and Pondicherry Research &
Development Chennai and Kolkata Speciality
Containers Coimbatore Tea Packaging and
Exports Coimbatore and Kolkata Travel and Tours Ahmedabad, Bangalore, Bhubaneswar, Chennai, Delhi, Hyderabad, Kolkata,
Mumbai, Thiruvananthapuram and Vadodara |
DIRECTORS
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Name : |
Mr. S. K. Mukherjee |
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Designation : |
Managing Director
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Date of Birth/Age : |
55 years |
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Experience : |
38 years |
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Name : |
Mr. P. Radhkrishnan |
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Designation : |
Whole Time
Director |
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Date of Birth/Age : |
57 years |
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Experience : |
33 years |
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Name : |
Mr. A. K. Jain |
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Designation : |
Director
[Nominee] |
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Name : |
Mr. V. N. Sharma |
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Designation : |
Whole Time
Director |
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Date of Birth/Age : |
55 years |
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Experience : |
32 years |
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Name : |
Mr. K.
Subramanyam |
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Designation : |
Director |
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Name : |
Mr. M. Singh |
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Designation : |
Director |
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Name : |
Mr. A. Kaushik |
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Designation : |
Director |
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Name : |
Mr. S. K. Mukherjee |
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Designation : |
Managing Director
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Date of Birth/Age : |
55 Years |
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Qualification : |
B. Com, AICWA |
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Experience : |
38 Years |
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Name : |
Mr. P. Radhakrishnan |
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Designation : |
Whole Time
Director |
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Date of Birth/Age : |
57 Years |
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Qualification : |
B.A, DSW |
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Experience : |
33 Years |
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Name : |
Mr. V. N. Sharma |
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Designation : |
Whole Time
Director |
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Date of Birth/Age : |
B. Tech, MBA |
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Qualification : |
55 Years |
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Experience : |
32 Years |
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Name : |
Mr. K.
Subramanyam |
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Designation : |
Director |
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Date of Birth/Age : |
55 Years |
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Experience : |
29 Years |
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Name : |
Mr. P P Sahoo |
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Designation : |
Executive Director (Human
Resource) |
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Date of Birth/Age : |
53 years |
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Experience : |
29 years |
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Name : |
Mr. Roy |
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Designation : |
Executive Director (Technical) |
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Date of Birth/Age : |
57 years |
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Experience : |
36 years |
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Name : |
Mr. A Dayal |
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Designation : |
General Manager (Industrial
Packaging) |
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Date of Birth/Age : |
52 years |
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Experience : |
31 years |
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Name : |
Mr. N Gupta |
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Designation : |
General Manager |
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Date of Birth/Age : |
52 years |
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Experience : |
27 years |
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Name : |
Mr. J G Arora |
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Designation : |
General Manager (Travel and Tours) |
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Date of Birth/Age : |
57 years |
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Experience : |
35 years |
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Name : |
Mr. K Gopinath |
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Designation : |
General Manager (Grease and Lubricants) |
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Date of Birth/Age : |
55 years |
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Experience : |
31 years |
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Name : |
Mr. S Ravikumar |
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Designation : |
General Manager (Chennai) |
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Date of Birth/Age : |
53 years |
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Experience : |
29 years |
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Name : |
Mr. A Das Gupta |
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Designation : |
General Manager (Finance) |
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Date of Birth/Age : |
56 years |
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Experience : |
32 years |
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Name : |
Mr. V Sinha General |
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Designation : |
General Manager |
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Date of Birth/Age : |
52 years |
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Experience : |
29 years |
KEY EXECUTIVES
|
Name : |
Amit Ghosh |
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Designation : |
Company Secretary |
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Date of Birth/Age : |
52 years |
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Experience : |
27 years |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of
Shareholders (As on 31.12.2007) :- |
No. of Shares |
Percentage of Holding |
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Non Promoters Holding |
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Institutional
Investors |
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Mutual Funds/UTI |
904028 |
5.551 |
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Financial
Institutions / Banks |
10426 |
0.064 |
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Central
government |
7485 |
0.046 |
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Insurance
Companies |
1985070 |
12.189 |
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Foreign
Institutional Investors |
106476 |
0.654 |
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Non Institutions |
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Bodies Corporate |
10888513 |
66.858 |
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Individuals – i. Individual shareholders holding nominal share capital
up to Rs. 0.100 Millions |
1971737 |
12.107 |
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ii. Individual shareholders holding nominal share capital
in excess of Rs. 0.100 Millions |
324651 |
1.993 |
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Any Other |
66925 |
0.411 |
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(ii) NRI - Non Rep |
18770 |
0.115 |
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OCB |
2000 |
0.012 |
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Total |
16286081 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufactures
industrial packaging, barrels and drums, LPG cylinders, greases and
lubricants, leather chemicals, functional additives and marine freight
containers. |
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Products : |
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Brand Names : |
Balmerol |
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Exports : |
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Countries : |
CIS Countries, Europe, Russia, UAE and UK |
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Imports : |
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Countries : |
China, CIS, Russia, Europe and U.K. |
PRODUCTION STATUS (As on 31.03.2007) :-
|
Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
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Greases and Lubricating Oils |
M.T. / K.L. |
|
71600 |
32010 |
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Barrels and Drums |
Nos. |
|
3954000 |
3591264 |
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Blended Tea including Bulk, Packets and Tea Bags |
M.T. |
|
3000 |
873 |
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Leather Auxiliaries |
M.T. |
|
3350 |
4810 |
GENERAL
INFORMATION
|
No. of Employees : |
1994 |
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Bankers : |
· ABN AMRO Bank NV, Kolkata, West Bengal , India · Allahabad Bank, Kolkata, West Bengal, India · Standard Chartered Grindlays Bank Limited, Kolkata, West Bengal, India · Bank of Baroda, Kolkata, West Bengal, India · Canara Bank, Kolkata, West Bengal, India · Citibank NA, Kolkata, West Bengal, India · HDFC Bank Limited, Kolkata, West Bengal, India · State Bank India, Kolkata, West Bengal, India · The Hongkong and Shanghai Banking Corporation Limited, Kolkata, West Bengal, India · United Bank of India, Kolkata, West Bengal, India · Induslnd Bank, India ·
Vijaya Bank, India |
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Banking
Relations : |
Good |
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Auditors : |
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Name 1: |
Gupta and Company Chartered Accountants |
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Address : |
53A, Mirza Ghalib Street, Flat No. 3C, Kolkata - 700 016, West Bengal, India |
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Name 2: |
M. Choudhary and Company Chartered Accountant |
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Branch Auditors
: |
Murali Associates Address: Rat G-l, Krishna, No. 28, Old No. 56, Second Main Road, R. A.
Puram Chennai - 600 028, Tamil Nadu, India Jain & Jain Address: 601, Jolly Bhavan No. 2, 51, New Marine lines, Churchgate,
Mumbai - 400 020, Maharashtra, India Prem Gupta and Company Address : 4, Shivaji Marg, Najafgarh Road, New Delhi - 110 015, India · Chhotalal H. Shah and Company · C. S. Hariharan and Company ·
Sri Raviverma and Company |
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Internal
Auditors : |
L B Jha and Company Chartered Accountants Address : DG-1 and EG -3, Gillader Houser, 8 Netaji Subhas Road,
Kolkata – 700 001, West Bengal, India
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Associates/Subsidiaries : |
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Holding Company: |
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Collaborations : |
˜ Chevron Research & Technology Company, USA ˜ Fuchs Petrolub AG, Germany ˜ Hispano Quimica SA, Spain ˜ Nyco SA, France ˜ Royal Packaging Industries Van Leer BV, The Netherlands ˜ Tectrans Technology GmbH, Germany ˜ Timac BV, The Netherlands ˜ Transamerica Leasing Inc, USA ˜ Vanderbilt Corporation, USA |
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Memberships : |
Confederation of Indian Industry |
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Joint Venture: |
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CAPITAL STRUCTURE
(As on 31.03.2007)
:-
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs. 10/- each |
Rs. 300.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9065547 |
Equity Shares in cash |
Rs. 10/-
Each |
Rs.90.655
Millions |
|
400000 |
Equity Shares pursuant to a contract without
payment being received in cash |
Rs. 10/-
Each |
Rs. 4.000 |
|
448130 |
Equity shares allotted as fully paid shares
pursuant to Amalgamation of Steel Containers Limited and industrial
containers limited with the company |
Rs. 10/-
Each |
Rs. 4.481
Millions |
|
6372404 |
Equity Shares allotted as fully paid bonus
shares by way of capitalization of General reserves and Share premium |
Rs. 10/-
Each |
Rs.63.724
Millions |
|
|
|
Total |
Rs.162.860 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 |
|
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|
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1] Share Capital |
162.860 |
162.860 |
162.900 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2540.204 |
2095.214 |
1794.300 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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|
NETWORTH |
2703.064 |
2258.074 |
1957.200 |
|
|
LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
97.500 |
376.937 |
804.700 |
|
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2] Unsecured Loans |
0.000 |
0.000 |
9.000 |
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TOTAL BORROWING |
97.500 |
376.937 |
813.700 |
|
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DEFERRED TAX LIABILITIES |
247.009 |
277.009 |
0.000 |
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TOTAL |
3047.573 |
2912.020 |
2770.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1655.879 |
1707.492 |
1763.100 |
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Capital work-in-progress |
0.000 |
0.000 |
13.800 |
|
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INVESTMENT |
471.412 |
471.468 |
473.700 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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|
Inventories |
802.753
|
799.577 |
791.200 |
|
|
Sundry Debtors |
1977.077
|
1846.714 |
1504.900 |
|
|
Cash & Bank Balances |
482.649
|
156.549 |
119.700 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
605.092
|
555.967 |
570.400 |
|
Total
Current Assets |
3867.571
|
3358.807 |
2986.200 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
2567.423
|
2343.846 |
2469.600 |
|
|
Provisions |
412.308
|
360.314 |
123.300 |
|
Total
Current Liabilities |
2979.731
|
2704.160 |
2592.900 |
|
|
Net Current Assets |
887.840
|
654.647 |
393.300 |
|
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MISCELLANEOUS EXPENSES |
32.441 |
78.413 |
127.000 |
|
|
|
|
|
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|
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TOTAL |
3047.573 |
2912.020 |
2770.900 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
12799.123 |
12346.121 |
10762.000 |
|
|
Other Income |
203.735 |
178.276 |
0.000 |
|
|
Total Income |
13002.858 |
12524.397 |
10762.000 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1061.618 |
808.497 |
452.600 |
|
|
Provision for Taxation |
359.401 |
340.500 |
154.300 |
|
|
Profit/(Loss) After Tax |
702.217 |
467.997 |
298.300 |
|
|
|
|
|
|
|
|
Export Value |
126.715 |
383.024 |
NA |
|
|
|
|
|
|
|
|
Import Value |
170.716 |
[174.838] |
NA |
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Raw Materials Consumed |
3143.065 |
3128.059 |
|
|
|
Purchase Trading Goods |
15.761 |
6.142 |
|
|
|
Purchase Turnkey Projects |
445.040 |
596.199 |
|
|
|
Cost of Services |
6582.867 |
6074.535 |
|
|
|
General Expenditure |
1719.187 |
1790.372 |
|
|
|
Depreciation |
106.461 |
119.479 |
10309.400 |
|
|
Accretion/Decretion to Inventories |
[70.926] |
1.100 |
|
|
|
Prior Period Adjustments |
[0.215] |
0.014 |
|
|
Total Expenditure |
11941.240 |
11715.900 |
10309.400 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
31.03.2008 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
|
Sales Turnover |
3580.700
|
3521.800
|
3471.900
|
4098.900
|
|
Other Income |
46.000
|
113.000
|
29.200
|
40.300
|
|
Total Income |
3626.700
|
3634.800
|
3501.100
|
4139.200
|
|
Total Expenditure |
3286.600
|
3218.000
|
3158.400
|
3786.800
|
|
Operating Profit |
340.100
|
416.800
|
342.700
|
352.400
|
|
Interest |
6.900
|
6.900
|
7.900
|
7.800
|
|
Gross Profit |
333.200
|
409.900
|
334.800
|
344.600
|
|
Depreciation |
28.200
|
27.000
|
30.900
|
32.100
|
|
Tax |
102.200
|
123.800
|
104.000
|
105.000
|
|
Reported PAT |
202.800
|
259.100
|
199.900
|
207.500
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.10 |
0.28 |
0.56 |
|
Long Term Debt-Equity Ratio |
0.10 |
0.28 |
0.54 |
|
Current Ratio |
1.16 |
1.13 |
1.15 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed Assets |
4.82 |
4.73 |
3.85 |
|
Inventory |
16.93 |
16.49 |
14.78 |
|
Debtors |
7.09 |
7.83 |
7.27 |
|
Interest Cover Ratio |
24.75 |
12.71 |
5.12 |
|
Operating Profit Margin(%) |
8.94 |
9.27 |
6.52 |
|
Profit Before Interest And Tax Margin(%) |
8.16 |
8.36 |
5.34 |
|
Cash Profit Margin(%) |
5.96 |
5.33 |
4.01 |
|
Adjusted Net Profit Margin(%) |
5.18 |
4.42 |
2.83 |
|
Return On Capital Employed(%) |
41.55 |
42.14 |
20.64 |
|
Return On Net Worth(%) |
28.31 |
27.52 |
16.04 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Subject was established in 1867 as a partnership firm and was converted into a Private Limited Liability Company in 1924. It was subsequently converted into a Public Limited Liability Company in the year 1936 with its Registered Office at 21, Netaji Subhas Road, Kolkata – 700 001, West Bengal. The company is now a subsidiary of IBP Company Limited and has a subsidiary of its own in UK styled as Balmer Lawrie (UK) Limited.
Kolkata-based
Balmer Lawrie and company manufactures industrial packaging, barrels and drums,
LPG cylinders, greases and lubricants, leather chemicals, functional additives
and marine freight containers. It also undertakes tea exports and trading,
travel, tours, and cargo and engineering services such as turnkey projects,
energy-audit and consultancy and freight-container repairs.
It is the largest manufacturer of steel barrels in India. It has a tie-up with
Fuchs Petrolub, Switzerland, to market industrial and automotive lubricants.
The company has a joint venture with IOC and NYCO, France, to produce aviation
grade synthetic/semi synthetic lubricants and grease for defence services. It
has a tie-up with Cochin Refineries for the manufacture of polybutenes. The company diversified into the manufacture
of plastic containers and allied products, leather tanning and production of
leather chemicals.
During 1998-99, the company business of blending and packaging of speciality
tea was successfully started with the commissioning of the plant at bedford in
May, 1999. Also the plant of Avi-Oil India at Piyala, Faridabad, commenced
production of aviation lubricants during the year. The plant of AVI-Oil India
Limited, a joint venture company, at Piyala, Faridabad, was commissioned with
effect from 1 August, 1999.
The company had executed the export order for a speciality oil consignment. The
company had upgraded the Tea factory at Kolkata to cater to the growing value added
business. As the government has decided to disinvest 61.8% of holding in IBP Co
Limited (erstwhile holding company of subject), to facilitate such
disinvestment, a new company was formed viz. Balmer Lawrie Investments Limited
w.e.f October, 2001.
OVERVIEW
In the year 2006-2007 the Company achieved significant milestones
by recording all time highs in various financial performance, which inter-alia
include turnover, profit before tax as also profit after tax, rate of dividend
and earning per share, thus delivering immense shareholder value.
The salient features of the financial performance for 2006-2007 as
compared to previous year are as follows :
* Overall turnover of the Company has gone up by 3.8% over previous year
and crossed Rs.13000.000 millions.
* Profit before tax has crossed Rs. 1000.000 millions mark, which is an
increase by 31% over previous year.
* Profit after tax and earning per share have increased by 50% over
previous year.
It is a matter of great pleasure to state that on 16 November 2006 the Company
was declared as Mini Ratna Category I company by the Government of India.
SUBSIDIARIES
Balmer Lawrie (UK)
Limited. (BLUK)
The main
business activity of the wholly owned subsidiary (WOS) during the year was
leasing and hiring of marine freight containers.
The business in the marine freight container industry has generally been in
line with the preceding year in terms of both daily rentals and utilisation
rates. Increased global trade and a fair amount of consolidation as witnessed
in this industry are expected to maintain the same trend in the coming year
save and except the effect of ageing fleet of containers. The financial
position of BLUK at the end of the year is considered reasonable.
Balmer Lawrie (Tea) Limited. (BLT)
The main
business activity of the subsidiary has been blending, packing and warehousing
of tea. This operation has shown a significant upswing in volume and a marginal
improvement in turnover. However, due to unabated competitive pressures and
increasing costs the financial performance continues to be extremely
challenging. The subsidiary continues to be primarily dependent on Harrods
Limited, which in turn is reliant on the tourist trade and off take by their
Japanese partners. While the tourist inflow has shown some signs of
improvement, export of their products to Japan continues to be erratic and year
on year sales are significantly lower. The subsidiary has tried to offset this
by picking up large volume of contract packing business with a major tea
packing company. Besides contributing to a reduction in the loss for the year,
this has improved the volume and turnover. However, margins are extremely tight
and in view of the circumstances the financial performance of the subsidiary is
considered reasonable.
An in-depth analysis of financial performance of both the subsidiaries
vis-a-vis the prevailing market scenario reveals that while BLT is expected to
marginally improve its financial performance in the short term, it will remain
burdened with borrowings and no significant turn around is expected in the
medium to long term. Whereas BLUK shall continue to be debt free, its
performance in terms of profit shall tend to decline due to its ageing fleet of
containers. Considering the aforesaid prospect of the above subsidiaries, it
has been thought prudent not to continue with two separate legal entities e.g.
BLUK and BLT and merge back the tea activity of BLT with BLUK. Such merger has
been effected with effect from 1 April 2007.
JOINT VENTURES
AVI-OIL India (P) Limited.
(AVI-OIL)
During
2006-2007 there was a marginal improvement in net sales as compared to the
previous year. However, there was a marginal decline in profit mainly due to comparatively
unfavourable product mix and increase in employee cost arising out of long term
settlement.
A notable break through during the year was the award of the rate contract for
three years by a major Indian customer for seven large volume products enabling
the joint venture to efficiently plan its production schedule leading to better
inventory management in the coming years. The Joint Venture was able to sustain
its business with continued validation of approvals of the Company's Quality
Assurance Organisation by the Director General of Aeronautical Quality
Assurance, Ministry of Defence and the Director General of Civil Aviation,
which was further supported by product 'Type Approvals' from the Centre for
Military Airworthiness and Certification, Ministry of Defence.
Balmer Lawrie-Van Leer Limited.
(BLVL)
During
the year under review BLVL achieved an increase in net sales and other income
from Rs.858.300 millions to Rs.
1033.200 millions representing an increase of 20% over the last year. In value
terms the domestic sales grew by 21% whereas exports increased by 14%. However,
runaway increase in steel and polymer prices, the basic raw materials for BLVL,
more particularly during the 1st half of the year, resulted in squeezing of the
margins as the increase in cost could not be passed on completely to the
customers.
Consequently
there was an adverse impact on the bottom line with the net profit being
marginally lower at Rs.55.571 millions as against Rs.6338.500 millions in the
last year.
BLVL has, however, started working on expansion of capacity of all its primary
products i.e. steel closures and plastic drums aimed towards profitable growth
in the coming years.
Transafe Services Limited
(TSL)
Indian
Container Leasing Company Limited has been renamed as Transafe Services Limited
with effect from 30 March 2006. The erstwhile container leasing activity has
now become a Strategic Business Unit (SBU) called Indian Container Leasing
Division. The other SBUs are Glacio Cold Chain Logistics, Indo Trailer
Logistics and Creative Container Division.
The total turnover of TSL for the financial year ended 31 March 2007 has
recorded a growth of approx. 98% and with the formation of above SBUs and
further with Leave and License arrangement entered into with the Company for
operation of its Speciality Container Division, Coimbatore, TSL is expected to
maintain its momentum of profitable growth.
Balmer Lawrie (UAE) LLC (BLUAE)
Balmer
Lawrie (UAE) LLC maintained its turnover during the year 2006 despite difficult
market condition, intense competition and pricing pressures. Customers
resistance to price increase continued and margins were under constant
pressure.
There are challenges ahead for showing growth in turnover, volumes and
profitability in view of the ever increasing competitive pressure, the
prevailing geo political situation in the region and unhealthy competition
within the customers market segments. The prices of the main raw materials viz.
CR steel, Tinplate and HDPE are also of late showing an upward trend.
However, BLUAE continues to retain its dominant position and market share by
maintaining customer satisfaction at a high level by fulfilling the customers
needs and expectations. BLUAE also strives to maintain high business ethics and
dependability as a reliable supplier at all times.
BLUAE
also continues to upgrade its facilities and increase its capacities apart from
enlarging the product range through continuous investments.
Memorandum of Understanding (MoU)
The
Company, on an annual basis, enters into an MoU with the Government of India at
the Ministry of Petroleum and Natural Gas detailing therein various targets on
operational, financial and efficiency parameters besides matters like customer
satisfaction, quality and human resource development.
The
targets so agreed upon are evaluated by Department of Public Enterprises,
Government of India (DPE) and it is a matter of great pride to report that the
Company has obtained the highest rating viz. 'excellent' for the financial year
2005-2006. Result of MoU signed for the financial year 2006-2007 is yet to be
announced, by DPE.
MANAGEMENT DISCUSSION AND
ANALYSIS
The
Company has a diverse business portfolio spanning manufacturing and services
sectors with each major business being recognised as a Strategic Business Unit
(SBU). Each SBU is discussed separately herein below:
1. INDUSTRIAL PACKAGING (SBU-IP)
Industry structure and
developments
The
SBU-IP offers a wide range of 165/200/210 litre mild steel barrels from its six
manufacturing locations spread across the country. These barrels/drums are used
for packing liquids, pastes and solids for transportation and storage. Customer
segments include lubricating oils and greases, transformer oil, agrochemicals
and other chemicals, paints, food products, bitumen, etc. The industrial
packaging industry segment in which the SBU operates is characterized by low
growth rate, large number of manufacturers and surplus capacities. Cold rolled
steel is the main raw material input for the SBU and the year under review
witnessed a relative stabilization of prices compared to the previous
year.
The SBU continued to hold its lead position in terms of market share during the
year.
Outlook
Increased GDP growth in the country
and thrust on exports is expected to result in modest growth of the market for
the SBU's products.
The SBU has planned further rationalization and upgradation of manufacturing
facilities during the coming year to improve operational efficiencies and
productivity as well as to achieve higher volume of value added products.
GREASE AND LUBRICANTS (SBU – G
and L)
Industry structure and
developments
The
Indian market for lubricants (oils and greases) is estimated to be about 1.25
millions tons or around Rs. 85000.000 millions by value. India is reported to
be the 6th largest in terms of lubricants consumption in the world and the
market is estimated to be growing at about 3% per annum.
Lubricants for use in automobiles account for over 60% of the market with
industrial and marine applications accounting for the remaining 40%. The SBU is
a major participant in the industrial lubricants segment and also accounts for
a large share of the automotive greases. The SBU also markets a comprehensive
range of automotive lube oils.
The lubricants industry in India has a large number of players consisting of
national oil companies, multinational oil companies, specialist lubricant
companies like Balmer Lawrie and companies operating in niche product segments.
Medium/small-scale and unorganized sectors also have significant presence in
some territories. There is surplus production capacity in the country for
lubricating oils and greases.
The year
2006-07 was an extremely difficult year for the lubricants industry as the cost
of the main input material viz. base oil continued its upward spiraling trend
and reached an all time high, about 20% above the March'06 levels. Costs of
other key inputs such as lubricant additives and lithium hydroxide also scaled
new heights causing severe erosion of margins.
Outlook
With several new
industrial units in the core sector being built in the country along with
capacity expansion of existing units, lube demand in the industrial sector is
expected to grow at a rapid pace over the next few years. The SBU will
intensify its efforts to introduce more value added greases and oils to cater
to these sectors.
The growth in the road transportation sectors in the country augers well for
the demand of automotive lubricants, notwithstanding the declining specific
consumption of lubricants per vehicle-kilometre due to introduction of newer
generation vehicles as well as use of longer lasting lubricants. The Company
expects to rapidly grow its share in the automotive lubricants segment.
The Company also expects to grow its export in the medium term although the
recent hardening of the rupee against the dollar places severe pressure on
margins
LOGISTICS SERVICES (SBU-LS)
Industry Structure and
Developments
This SBU
offers a wide range of services which include Air/Sea imports and exports
(Import consolidation, air and sea freight forwarding, Custom House Agency,
Warehousing, Door to Door services), Project Cargo (Documentation, Multimodal
Transportation, CHA, Warehousing, Door to Door services), Chartering Aircraft
and Vessels. The industry comprises large multinational companies, large Indian
companies and also small operators.
The recent developments that are likely to influence the business are:-
* The general upswing in the export - import trade in the country opens up
opportunities for the industry.
* Mumbai and Delhi airports are ranked amongst the top 50 airports in the world
in respect of volume being handled. Bangalore Airport is also ranked among the
fastest growing airports.
* The large investments proposed in steel, petroleum, oil prospecting etc.
offer opportunities for the business.
Outlook
The client base
of the SBU, as of now, is largely in the government and Public Sector, while
retaining its hold on the customer segment, it is making concerted efforts at
widening the client base to the Private Sector.
The SBU
has established a wide network of its own offices and associates the world over
offering a basket of tailor made value added services.
ENGINEERING and TECHNOLOGY
SERVICES (SBU- ETS)
Industry Structure and
Developments
The
operation of the SBU ranges from execution of turnkey projects, construction of
roads, buildings, tankages, engineering consulting services and Automated Tank
sludge cleaning activity in crude oil tankages. The SBU has been offering its
services mainly to the oil and infrastructure sectors. While work on offer in
this sector is on the rise, competition continues to put pressure on operating
margins.
The steep increases in price of steel and cement and non availability of
quality sub-contractors for the nature of jobs carried out by the Company has
been a major adverse development as is the case for all companies executing
fixed price turnkey projects.
Outlook
The SBU has
limited resources and considering that major development/expansion schemes for
in-house work are in the offing, the SBU will primarily focus on speedy and
economic execution of in-house projects; while simultaneously looking at opportunities
in the crude oil tank sludge cleaning and other direct service related areas in
the oil exploration/refining industry. The other jobs, which were getting
executed for external clients in the area of Turnkey Projects, Construction of
Building, Tankages etc. are under review for its continuation.
TRAVEL AND TOURS (SBU –T and
T)
Industry Structure and
Developments
Travel
facilitation industry has around 1500 IATA approved agents and over 15000
non-IATA agents operating in the country. Of these, only about 20 are large
operators with multi-locational presence. The SBU, one of the largest operators
in organized sector, operates through twelve branches spread across the
country. The SBU primarily caters to government, corporate and institutional clients.
The fragmented structure of the industry, coupled with financial compulsions of
airlines had over the past few years led to a decline in commissions and
earning potential. Some of the other notable developments were:
* Opening up of skies in India and also Indian airline companies making
forays in International routes.
* Projected large additions to fleet by major airlines.
* Coming together of banks and airlines to offer travel discounts on
tickets purchased through credit cards.
* Travel portals facilitating e-booking of tickets.
* Entry of 'no frills' airlines whose fares are 30-50% cheaper than other
established domestic carriers. A few more 'no frill airlines' joined the fray
during the year.
* Responding to the threat of low cost carriers, the full service
carriers offering a substantial portion of seats on deeply discounted
fares.
* Reducing commission on ticket sales.
Outlook
The SBU
continues to have aggressive growth strategy through addition of new clientele
and increasing foot prints in new areas. It expects to manage costs through
reduction in transaction costs areas. It expects to manage costs through
reduction in transaction costs and giving focus on collection of outstanding.
Further improvement in customer satisfaction is initiated through leverage
technology and 24x7 customer response centers. The SBU also expects to trigger
lateral diversification to tours.
CONTAINER FREIGHT STATION (SBU-
CFS)
Industry Structure and
Developments
Since
the opening up of the economy to global market forces, India's export/Import
trade has gone up substantially resulting in rapid buildup of cargo volumes.
This, in turn, has created an unprecedented pressure on the existing port
capacities giving rise to the need for expanding existing terminal operations
and other cargo handling infrastructure. 'Container Freight Station' (CFS)
which operates as an extension of the port greatly helps manage such space
constraints in port. Typically the activities carried out and services rendered
at a CFS include
* Aggregation of long distance cargo* In-transit storage* Warehousing*
Custom house clearance* Transportation to and from ports.
Ports, the gateway to India's international trade by sea, handle over 90% of
foreign trade. Presently, half of the world's traded goods are containerized
and this proportion is expected to increase further. India's container traffic
is presently around 4.5 million TEUs (twenty feet equivalent units),which
compared to International volumes is extremely low leaving scope for major
growth.
The Company has CFSs at Kolkata, Navi Mumbai and Chennai. Container traffic in
the locations where Balmer Lawrie has its CFS accounts for the major proportion
of the total volume of the container handled in the major ports of the
Country.
Outlook
The outlook for all the three CFSs is quite positive since volume handled in
Chennai and Navi Mumbai are growing rapidly due to availability of hi-tech
state of the art equipment, improved throughput, faster turnaround of container
vessels, improved berth and crane productivity and computerized management
system being employed by the Port operators. The SBU is expected to acquire
additional space at all CFSs and look for opportunities in other port areas to
expand its activities to reap the benefits of growing economy as the
GOI-initiated study on Perspective Plan for Port Sector vision 2020, states
that the volumes of business could grow three fold by 2020.
LEATHER CHEMICALS (SBU -
LC)
Industry Structure and Developments
The
growth of domestic leather chemicals industry is linked to the prospects of
leather processing/leather goods industry, which in turn is largely dependent
on the export market. India accounts for about 6% of world leather production
and 2.5% of the global trade in leather articles.
Export
of leather articles has been growing significantly in the last few years.
The leather chemicals industry in India consists of a number of global majors who
have set up production facilities in India and also a large number of medium
and small-scale Indian companies. The industry also faces severe competition
from imports.
Outlook
Although the
industry is facing depressed demand conditions coupled with increased
competition from imports, the prospects of the industry in the medium to long
term are good. The SBU is strengthening its R and D efforts with a view to
accelerate introduction of new products. The SBU is also placing increased
thrust on exports.
TEA (SBU -TEA)
Industry Structure and
Developments
The
SBU-Tea is in the business of procuring tea from Indian market (directly from
tea estates, auctions and private seller) adding value through blending,
bagging etc. as per its overseas/internal buyers requirements viz. bulk,
packaged form, tea bags. The SBU specialises in specialities and high value
added teas.
Outlook
Contingent upon
India's improved relationship with major tea consuming countries, coupled with
likely opening up of opportunities in other markets outlook for the SBU seems
to improve in near future. The SBU is also hopeful of improving domestic sale
during the current year.
SPECIALITY CONTAINERS (SBU -
SC)
Industry Structure and
Developments
The SBU
has facilities for design and manufacture of Speciality Containers viz. Housing
Containers, Insulated Boxes, Containers for Transport Sector (Dry van, swap
body etc.) and other Speciality Boxes. The features of the speciality
containers have been undergoing many changes with improvements in knowledge of
designing custom built boxes and new applications are constantly emerging. Some
of the new areas where considerable work has been done by the SBU include (a)
Acoustically/Thermally insulated boxes for a variety of applications. (b) Super
speciality containers, (c) Refrigerated containers for cold chain applications
and (d) Containers specially designed for Armed Forces, Space research etc. The
SBU is currently operated under a Leave and License' agreement with M/s.
Transafe Services Limited.
Outlook
As a temporary
measure, the facilities of the SBU were being utilized by Transafe Services
Limited. on a leave and license basis on and from 1 April 2006. Transafe
Services Limited. (previously known as Indian Container Leasing Company Limited.)
is promoted by the Company.
With a view to exit from the manufacturing of speciality containers, the Board
of Directors of the Company, has recommended to transfer the business of SBU in
favour of Transafe Services Limited. With effect from 1 April 2007 or such
other date as may be agreed between the Company and Transafe Services Limited.
and the shareholders of the Company has approved such sale by way of voting
through postal ballot on 9 March 2007.
The final transfer of business of SBU to Transafe Services Limited. is
dependent on approval of the Government of India and therefore, license for
utilization of the facilities of the SBU to Transafe Services Limited is
renewed for one more year w.e.f. 1 April 2007.
The company has been accredited with ISO 9002 Certification.
ISO 14000
certification was achieved in Grease and Lubricants Plant, Kolkata
TRADE REFERENCE:
˜ Atlas Paper Industries
˜ Eastern Polycrafts Industries Limited
˜ Essem Drum Manufacturing Company
˜ Ganapati Metchem (Private) Limited
˜ Indian Packaging Company Private Limited
˜ Makali Metals Private Limited
FIXED ASSETS ;
· Freehold and Leasehold
· Buildings and Sidings,
· Plant and Machinery,
· Electrical Installation and Equipment,
· Furniture and Fittings,
· Typewriters,
· Accounting Machines
· Office Equipment,
· Tube wells, Tanks and
·
Miscellaneous Equipment and Vehicles.
WEBSITE DETAILS:-
Balmer Lawrie Van Leer Limited .
Balmer Lawrie-Van
Leer Limited is a joint venture between subject and Royal Packaging Industries
Van Leer NV (Van Leer Industrial Packaging – A Business of Grief Bros.
Corporation, USA). Close to 80% of the shares are held by the promoters
(50:50), the balance being with the public. The shares are listed in BSE.
BLVL’s products are manufactured at their state of art, ISO 9001 certified
factories at Mahul, Mumbai and Turbhe, Navi Mumbai. The products can be broadly
divided into two segments.
(a)
Steel Drum Closures
(Manufactured at Mahul, Mumbai)
(b) Plastic Containers in sizes from 10
to 235 litre (Manufactured at Turbhe, Navi Mumbai)
Contact:
Balmer Lawrie-Van Leer Limited
L.U. Gadkari Marg
Mahul, Chembur
Mumbai – 400 074
Phone No. +91 22 2554 3043 / 2554 4044-47
Fax No. +91 22 2554 3984
E-mail: response@blvlindia.com
Website : www.blvlindia.com
Avi-Oil India Private Limited.
AVI-OIL India (P)
Limited. is a joint venture of Indian Oil Corporation Limited (25%), subject
(25%) and NYCO SA of France, established for the indigenous production/supply
of Aviation and allied lubricants to the Defence Services, Civil Aviation and
the Industrial Sector.
The lubricants
comprise a range of high performance oils, greases and specialities, mostly
synthetic, designed to meet the stringent requirements of operation over a wide
temperature range and often hostile environment.
The manufacturing
plant of AVI-OIL is located at village Piyala, in Faridabad District, Haryana,
45 KM from New Delhi.
Contact:
AVI-OIL INDIA (P) LIMITED.
C/o. Indian Oil Corporation Limited
607, Surya Kiran Building, 6th Floor
New Delhi – 110 001
Phone No. : +91 11 3730607/8/9
Fax No. : +91 11 3357671
Website : www.tafsaslumni.com/avioil.asp
Balmer Lawrie (UAE) L.L.C
Balmer Lawrie (UAE)
LLC is a joint venture company between HH Sheikh Hasher Maktoum of Dubai (51%)
and subject (49%) The company is engaged in manufacture of wide range of
packaging media including Steel Drums and Kegs, Plastic Containers, Tin Cans
etc.
The company’s manufacturing facilities are located at Dubai, UAE.
Contact:
Balmer Lawrie (UAE) L.L.C.
PO Box 11818 Dubai
Al Quoz Industrial Area, 3rd Interchange Dubai
United Arab Emirates
Phone No :
+971 4 3382476
Fax No. : : +971 4 3381507
E-Mail : bluaedxb@emirates.net.ae
Transafe Services Limited
Transafe Services
Limited (erstwhile Indian Container Leasing Company Limited) is a joint venture
between subject (29%) and ICICI Venture Capital Limited (71%). The areas of
operation of the company include:
NBFC Operations:
Operating lease of Marine Freight Containers, derivatives and other related
equipment/ service.
Logistics
Operation: Cold chain, Trailer operations, consolidation, breaks bulking, ware
housing, Depot/yard operations etc. The company has pioneered the use of
multi-axle 45 feet road containers under its brand name “Indo Trailers” for use
in the “Hub and Spoke” concept in the logistics field.
Manufacturing
Operations: Manufacture of special purpose containers.
Contact:
Transafe Services Limited
Balmer Lawrie House, 6th Floor
21, N.S. Road
Kolkata – 700 001
Phone : +91 33 2242 4505/4583/4336
Fax No. : +01 33 2242 4999
E-mail : enquiry@transafeservices.com
Website : www.transafeservices.com
Balmer Lawrie (UK)
Limited
Balmer Lawrie (Tea) Limited
Balmer Lawrie (UK)
Limited is a wholly owned subsidiary of Balmer Lawrie. Balmer Lawrie (Tea)
Limited is a wholly owned subsidiary of Balmer Lawrie (UK) Limited. Both the
companies are private limited companies, incorporated in the United Kingdom.
Balmer Lawrie (UK) Limited is engaged in International Marine Freight Container
Leasing and Balmer Lawrie (Tea) Limited in import, warehousing, blending and
packaging of speciality tea. The Tea Blending and Packaging Unit is located at
Bedford, U.K.
Contact:
Balmer Lawrie (UK) Limited
Unit 1-3 St Martins Court, Aston Road
Bedford
MK42 OLN
Bedfordshire
Tel: 01234 320077
Fax: 01234 320088
PRESS RELEASE :-
Balmer Lawrie plans
to hive off tea blending unit
25 Sep, 2007, 2300
hrs IST, PTI
KOLKATA: Balmer Lawrie and Co Ltd on Tuesday said it plans to hive-off its tea
blending unit in the UK after it turned economically unviable, even as the
company is looking at acquiring a logistics company.
"We plan to
sell off the tea blending unit and looking at
acquiring a logistics company," Balmer Lawrie managing
director S K Mukherjee today said after the companys AGM.
"We have hired
SBI Capital Markets to advise on sale of the asset," he added.
The company expects
to complete the process to sell the tea blending unit by October.
On acquisition of
the logistics company, Balmer Lawrie officials said it was looking at firms
with expertise in the
exports segment. "We are aiming at companies with strength in freight
forwarding with strength in outbound cargo," Mukherjee said.
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. 43.27 |
|
UK Pound |
1 |
Rs. 86.28 |
|
Euro |
1 |
Rs. 68.24 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
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 |
|