MIRA
INFORM REPORT
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Report Date : |
03.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
BIO CAPS INDIA LIMITED |
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Registered Office : |
Durgapur Express Way, Mallarber, Dankuni,
Kolkata – 712 205, 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 : |
06.03.2003 |
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Com. Reg. No.: |
21-95890 |
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CIN No.: [Company
Identification No.] |
U24239WB2003PTC095890 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALB04939E |
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Legal Form : |
Closely Held Public Limited Liability Company. |
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Line of Business : |
Manufacturers of Empty Hard Gelatin Capsules. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 500000 |
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Status : |
Sick Company |
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Payment Behaviour : |
Delayed |
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Litigation : |
Exist |
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Comments : |
The company has huge accumulated losses and it has become sick
company. It’s payments are delayed. Mr. Kotak of UCO Bank, Kolkata also confirmed
that it is almost a sick company. The company can be considered for any business dealings on safe and
secured trade terms and conditions only. |
LOCATIONS
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Registered Office : |
Durgapur Express Way, Mallarber, Dankuni, Kolkata
– 712 205, West Bengal, India |
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Tel. No.: |
91-33-2283-9316/17/18 / 22487028 |
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Fax No.: |
91-33-2289-0094 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Ajit Agarwal |
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Designation : |
Director |
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Address : |
7/1 B, Rainey park, 3 E Shivam Apartments, Kolkata – 700019, West
Bengal, India |
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Date of Birth/Age : |
04.10.1974 |
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Date of Appointment : |
06.03.2003 |
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Name : |
Mr. Rajendra Kumar Sonthalia |
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Designation : |
Director |
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Address : |
FE-83 Sector III, Salt Lake City, Kolkata – 700091, West Bengal, India
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Date of Birth/Age : |
02.01.1953 |
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Date of Appointment : |
06.03.2003 |
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Name : |
Mr. Bimal Kumar Lakhotia |
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Designation : |
Director |
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Address : |
3674 Radhakunj, Sector – 23, Palm Vihar, Haryana – 122001 |
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Date of Birth/Age : |
06.10.1974 |
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Date of Appointment : |
06.03.2003 |
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Name : |
Mr. Anurag Sonthalia |
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Designation : |
Director |
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Address : |
FE-33 Sector III, Salt Lake City, Kolkata – 700091, West Bengal, India
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Date of Birth/Age : |
25.06.1983 |
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Date of Appointment : |
30.11.2004 |
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Name : |
Mr. Rajesh Kumar Bhatra |
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Designation : |
Director |
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Address : |
E/20, Jajodia Garden Govt. Qtr. PO-Belurmath, Howrah – 711 202, West
Bengal, India |
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Date of Birth/Age : |
08.07.1965 |
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Date of Appointment : |
09.11.2007 |
KEY EXECUTIVES
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Name : |
Mr. Mohanlal Lahiri |
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Designation : |
Company Secretary |
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Address : |
47 Badrinath Temple Street, Kolkata – 700004, West Bengal, India |
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Date of Birth/Age : |
15.12.1942 |
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Date of Appointment : |
29.07.2005 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 29.09.2005
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Names of Shareholders |
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No. of Shares |
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Ajit Agarwal |
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4800 |
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Rajendra Kumar Sonthalia |
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4875 |
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Murari Lal Agarwal |
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3250 |
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Manju Sonthalia |
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2930 |
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Anurag Sonthalia |
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1937 |
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Globe Enterprises |
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20750 |
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Brojendra Kumar Paul |
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1600 |
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Joydeb Manick |
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1000 |
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Vishnu Agarwal |
|
100 |
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R. L. Agarwal and Sons (HUF) |
|
400 |
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Upendra Singh |
|
560 |
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Nidhi Poddar |
|
400 |
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Rakesh Agarwal |
|
150 |
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Ashok Agarwal |
|
150 |
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Ram Gopal Agarwal |
|
350 |
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Suraj Lal |
|
360 |
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Usha Agarwal |
|
150 |
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Manju Estates Private Limited |
|
60870 |
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Vaishnu Enclaves Private Limited |
|
65470 |
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Ruchika Trades Private Limited |
|
15340 |
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Rupesh Agarwal |
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100 |
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Manish Dhanuka |
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320 |
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BPL Stock Broking Services Private Limited |
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42010 |
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Mittal Hirise Private Limited |
|
6700 |
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Santosh Agarwal |
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180 |
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Draupadi Agarwal |
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170 |
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Rakhi Agarwal |
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390 |
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Deepon Sen |
|
280 |
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Bahadur Doshi |
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180 |
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Girish Duggar |
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170 |
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Yogita Sethia |
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160 |
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Sounitra Mukherjee |
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170 |
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Shanti Maheshwari |
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160 |
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Manju Debnath |
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170 |
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Anuja Guha |
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160 |
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Sunil Kumar Surekha |
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200 |
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Mla Enclaves Private Limited |
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11050 |
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Pitamber Flour Mills Limited |
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10000 |
Equity shares Breakup (percentage of total equity)
(As on 29.09.2007)
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Category |
Percentage |
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Bodies Corporate |
79.36 |
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Directors or relatives of directors |
8.21 |
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Other top fifty (50) shareholders |
12.43 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Empty Hard Gelatin Capsules. |
GENERAL
INFORMATION
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Bankers : |
·
UCO Bank Flagship Corporate Centre (IFB), MC Leod House,
3, Netaji Subha Road, Kolkata – 700 001, west Bengal, India ·
Punjab National Bank |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
·
M/s. Bajoria and Associates Chartered Accountants Address : 1, British India
Street, Room No. 209, Kolkata – 700069, West Bengal, India Tel No: 91-33-22438388 /
22130449 E Mail: Bajoria_amit@rediffmail.com ·
B. Jain and Company Chartered Accountants Address : 26, Strand Road, 1st Floor,
Kolkata – 700 001, West Bengal, India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
353000 |
Equity Shares |
Rs. 100/- each |
Rs.35.300 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
340123 |
Equity Shares |
Rs.100/- each |
Rs.34.012
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
34.012 |
33.346 |
24.809 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
66.025 |
64.691 |
47.618 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
100.037 |
98.037 |
72.427 |
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LOAN FUNDS |
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1] Secured Loans |
179.977 |
151.918 |
74.435 |
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2] Unsecured Loans |
13.122 |
0.000 |
0.013 |
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TOTAL BORROWING |
193.099 |
151.918 |
74.448 |
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DEFERRED TAX LIABILITIES |
0.000 |
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TOTAL |
293.136 |
249.955 |
146.875 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
162.229 |
139.169 |
122.046 |
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Capital work-in-progress |
29.004 |
26.046 |
0.395 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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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 |
10.856
|
6.324 |
2.978 |
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Sundry Debtors |
19.931
|
8.972 |
0.267 |
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Cash & Bank Balances |
0.622
|
0.778 |
0.719 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
40.675
|
56.295 |
19.079 |
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Total
Current Assets |
72.084
|
72.369 |
23.043 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
15.195
|
16.860 |
13.280 |
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Provisions |
0.208
|
0.000 |
0.000 |
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Total
Current Liabilities |
15.403
|
16.860 |
13.280 |
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Net Current Assets |
56.681
|
55.509 |
9.763 |
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MISCELLANEOUS EXPENSES |
45.222 |
29.231 |
14.671 |
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TOTAL |
293.136 |
249.955 |
146.875 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
62.106 |
25.900 |
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Other Income |
0.037 |
0.012 |
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Total Income |
62.143 |
25.912 |
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Profit/(Loss) Before Tax |
(17.263) |
(12.546) |
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Provision for Taxation |
0.000 |
3.167 |
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Profit/(Loss) After Tax |
(17.263) |
(15.713) |
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Expenditures : |
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Raw Material Consumed |
24.523 |
7.624 |
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Consumption of stores and spares parts |
0.922 |
1.082 |
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Salaries, Wages, Bonus, etc. |
5.178 |
2.704 |
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Payment to Auditors |
0.077 |
0.014 |
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Interest |
20.599 |
9.190 |
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Insurance Expenses |
0.307 |
0.219 |
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Power & Fuel |
6.718 |
5.294 |
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Depreciation & Amortization |
8.619 |
5.387 |
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Other Expenditure |
12.463 |
6.944 |
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Total Expenditure |
79.406 |
38.458 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
(27.78)
|
(60.64) |
NA |
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Net Profit Margin (PBT/Sales) |
(%) |
(27.80)
|
(48.44) |
NA |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(7.37)
|
(5.93) |
NA |
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Return on Investment (ROI) (PBT/Networth) |
|
(0.17)
|
(0.13) |
NA |
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Debt Equity Ratio (Total Liability/Networth) |
|
2.08
|
1.72 |
1.21 |
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Current Ratio (Current Asset/Current Liability) |
|
4.68
|
4.29 |
1.74 |
LOCAL AGENCY
FURTHER INFORMATION
The Register Office of the company has been shifted from 45 Shakespeare
Saranir, No. 303, Century Towers, Kolkata – 700 017, West Bengal, India to the
present address with effect from 02.05.2007.
Bankers Charges
Report as per Registry
|
Name of the company |
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Presented By |
UCO Bank Industrial Finance Branch 3, N. S. Road, Kolkata – 700001 |
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1) Date and description of instrument creating the change |
Agreement
relating to term loan dated 17.06.2005 Deed of
hypothecation of plant and machinery to secure term loan dated 17.06.2005 Deed of
hypothecation of goods to secure cash credit dated 17.06.2005 Deed of
hypothecation of book debts to secure cash credit dated 17.06.2005 Letter evidencing
extension of equitable mortgage by deposit of title deeds dated 17.06.2005 |
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2) Amount secured by the charge/amount owing on the securities of charge |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
The borrower
hereby hypothecation by way of first charge in favour of the Bank all Plant
and Machinery equipments, appliances, tools etc. acquired or to be installed
at the borrower Biotech Division situate at Durgapur Expressway, Mallarber,
P. S. Dankuni, Hoogly in the State of West Bengal Hypothecation of all stocks
of Raw material work in process and finished goods and other goods, products
and movable property of any kind which now or hereafter from time to time
during the security shall be brought in stored or be in or about the
borrowers said premises, godowns and factory as mentioned above or wherever
else and all present and future book debts, receivables, outstanding moneys,
claims etc. The borrower
extended the Equitable Mortgage by deposit of Title deeds in respect of their
immovable properties being all that piece and parcel of land adm 4 Bighas 4
Chittacks appertaining to Dag No. 481 under Khatian No. 1046 & 549 Dag No
483 Under Khatian No. 442 and also Dag No. 484 under Khatian No. 548 J L No.
22 R S No. 967 situated at Mouza – Mallabar, P S Dankuni, Hooghly in the
state of West Bengal with all building, sheds, structures etc. constructed or
to be constructed thereon. |
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4) Gist of the terms and conditions and extent and operation of the charge. |
The hypothecated
goods, all sales, realizations and insurance proceeds thereof and all the
said Book dents and realizations thereof and all the documents under this
security shall be held as the Bank exclusive property specifically
appropriated to this security and the borrower will not created any mortgage,
charge, lien or encumbrance affecting the same or any part thereof. The hypothecated
goods and all plant and machinery etc. shall be insured against loss or
damages under Bank clause. The hypothecated
assets both movable and immovable are absolute property of the borrower and
free form all encumbrances whatsoever. The term loan
will be repaid in 24 equal quarterly installments commencing from 01.04.2006 |
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5) Name and Address and description of the person entitled to the charge. |
UCO Bank Industrial Finance Branch 3, N. S. Road, Kolkata – 700001, West Bengal, India |
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6) Date and brief description of instrument modifying the charge |
Not applicable |
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7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not applicable |
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Corporate
identity number of the company |
U24239WB2003PTC095890 |
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Name of the
company |
BIO CAPS INDIA LIMITED |
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Address of the registered
office or of the principal place of
business in India of the company |
45, Shakespeare
Saranir No. 303, Century Towers, Kolkata – 700 017, west Bengal, India |
|
This form is for |
Modification of
charge |
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Type of charge |
·
Immovable
property ·
Book debts ·
Movable
property (not being pledge) ·
Floating
charge ·
Others |
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Particular of
charge holder |
UCO Bank Flagship Corporate Centre (IFB), MC Leod House, 3, Netaji Subha Road,
Kolkata – 700 001, west Bengal, India |
|
Nature of instrument
creating charge |
·
Agreement
relating to term loan ·
Deed of
hypothecation of movable plant and machinery to secure term loan ·
Deed of
hypothecation of goods ·
Deed of
hypothecation of book debts ·
Deed of
hypothecation of plant and machinery as additional security ·
Agreement
for ext. of charge by way of hypothecation over current asset to secure
non-fund based facilities ·
Equitable
mortgage by deposit of title deeds (No instrument was executed) |
|
Date of
instrument Creating the charge |
15.02.2007 |
|
Amount secured by
the charge |
Rs.195.697
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
·
Rate of
Interest Term Loan : BPLR + @ 0.50% i.e.
12.75% p.a. with monthly rests subject to change in BPLR from time to time. Cash Credit: At BPLR i.e. 12.25% p.a. with monthly rests subject to
change in BPLR from time to time. Commission: As per Bank’s guidelines. ·
Terms of
repayment Term Loan (I) : To be repaid in 22 quarterly instalments commencing
from 01.10.2006. Term Loan (II) : To be repaid in 24 quarterly instalments commencing
from 01.10.2008. Cash Credit: Repayable on Demand. ·
Margin 25% on stocks and 25% on book debts (Upto 90 days) ·
Extent and
operation of the charge All the assets hereby Hypothecated and mortgaged by the Company in
favour of UCO Bank shall stand operated by way of exclusive first charge. ·
Others The hypothecation Goods, All sales, Relizations and insurance proceeds
thereof and all the said book debts and realizations thereof and all the
documents under this security shall be held as the bank’s exclusive property
specifically appropriated to this security and the company will not create
any mortgage, charge, lien or encumbrance affecting the same. The
hypothecation assets shall be insured against loss or damage under Bank
clause. |
|
Particulars of
the property charged |
Hypothecation of
Plant and Machinery and other fixed assets installed or to be installed at
the Co’s factory at Durgapur Expressway, Mollarber, P.S. Dankuni, Dist.
Hoogly, W.B. Hypothecation of Stocks of Raw Materials, WIP and Finished Goods
etc and other movables which now or hereafter from time to time stored or
to be stored at the said premises or
wherever else and all present and future book debts of the company equitable
mortgage of land measuring 4 Bigha 4 Chittacks at Mouza-Mollabar, P.S.
Dankuni, Dist. Hoogly, W.B. |
|
Particulars of
the present modification |
By this
modification the overall limit has been enhanced from Rs.178.900 millions to
Rs.195.697 millions comprising of term loan (I) Rs.67.497 millions (Rundown),
Term Loan (II) Rs.97.500 millions (Rundown), C.C. Rs.25.700 millions, B.G.
Rs.2.500 millions and L/C Rs.2.500 millions. All other terms, conditions and
properties charged and mortgaged as security remain unaltered. |
AS PER WEBSITE
Subject produces two piece Hard Gelatin capsules for the
Indian as well as global market. Bio-Caps India benefits from a modern factory
constructed according to the current pharmaceutical norms located in Kolkata,
India. Their business concept is to provide innovative products with highest
quality to meet the changes in customer need and global market.
Available Sizes:
0-1-2
Due to their neutral taste and ease of
swallowing, capsules are the preferred dosage. that apart :
* Manufactured with pharmaceuticals grade gelatin
* Ethylene oxide free
* Sulfite free
* cGMP manufactured
Moisture Content
Their
hard gelatin capsules contain 12.5%-16% moisture and should be stored in the
recommended conditions to avoid any major moisture change that can adversely
affect the quality of the capsules.
Disintegration Time
Their
capsules disintegrate in less than 15 minutes as per I.P. The rupturing of the
capsule occurs in less than 1 minute after swallowing.
Microbiological Count
Effective
quality control throughout the entire capsule manufacturing process ensures
that Escherichiacoli, salmonella are always undetectable in total microbial
count< 1000 per g capsule substance.
Storage Conditions
Store
in tightly sealed, original packaging in temperatures ranging from 20 dig C to
25 dig C and relative humidity between 50 dig C and 60 dig
Packing and Availability
Their
capsules are packaged with the utmost care in anti-static plastic bags and in
the most durable, heavy duty corrugated boxes for ultimate protection for
ultimate protection against heat and damage. Details about packaging sizes can
be obtained by contacting one of their sales representatives. Their capsules
are regular stock items and can often be delivered in as quickly as 24 hours.
Manufacturing
Advantages
Hard gelatin capsules offer a variety of production
advantages over tablets
1.Simpler manufacturing process
2.Fewer production steps
3.Fewer analytical tests
4.Less manufacturing equipment
5.Fewer validation requirements
6.Reduced risk of mix-up
Formulation
Advantages
The hard gelatin capsule is a versatile container
1.Granules, powders, liquids, semi-solid formulations and
mini
tablets can easily be filled alone or in combination
2.Ideal for controlled release formulation in particular pellets
3.Requires fewer excipients
4.Reduces stability problems with sensitive drugs
5.More efficient pharmaceutical development means faster speed to market
6.Easy to differentiate
7.Ideal container for traditional medicines
Comparative
numbers of excipients required for hard gelatin capsules,tablets and dragees
Consumer
Advantages
Consumer preference for hard gelatin capsules is steadily
growing based on perceived advantages
1.Unique color and shape configurations enhance product
identity
2.Easy to swallow
3.Masks tastes and odours
4.Improves patient compliance
5.Promotes image of efficacy
Capsule Manufacturing Process
New production lines, Water purification systems and Air conditioning
systems
Their production environment is designed to be in accordance with cGMP Besides
implementing new production lines with better uniformity and higher precision, air
conditioning and water purification systems used are all pharmaceutical grade.
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 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.43.34 |
|
UK Pound |
1 |
Rs.86.53 |
|
Euro |
1 |
Rs.68.54 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
- |
|
OPERATING SCALE |
1~10 |
1 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
1 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
- |
|
--LEVERAGE |
1~10 |
- |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
- |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
NO |
|
TOTAL |
|
7 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|