MIRA
INFORM REPORT
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Report Date : |
16.06.2008 |
IDENTIFICATION
DETAILS
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Name : |
MEDICAPS LIMITED |
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Registered Office : |
Mhow-Neemuch Road, Sector-1, Pithampur - 454 775 District. -Dhar (M.R) |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
06.08.1983 |
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Com. Reg. No.: |
10-2231 |
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CIN No. : |
L24232MP1983PLC002231 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BPLM01282B |
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Legal Form : |
Public Limited Liability Company. Company’s shares are listed on the stock Exchanges. |
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Line of Business : |
Manufacturing of Capsules to attain Zero – Defect in Production and to fully normalize operations. |
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 1900000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established company having satisfactory track. Trade relations are fair. General financial position is satisfactory. Payments are usually correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office / Works : |
Mhow-Neemuch Road, Sector-1, Pithampur - 454 775 District. -Dhar (M.R) |
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Tel. No.: |
91-7292-2407445/2407446/253596 |
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Fax No.: |
91-7292-507387 |
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E-Mail : |
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Website : |
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Corporate Office : |
401, Chetal Center, 12/2, R. N. T. Marg, Indore – 452001, Madhya Pradesh |
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Tel. No.: |
91-731-24046321/2514062 |
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Fax No.: |
91-731-2582269 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. R.C. Mittal |
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Designation : |
Chairman & Managing Director |
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Name : |
Mr. Alok k. Garg |
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Designation : |
Executive Director |
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Name : |
Mrs. Trapti Gupta |
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Designation : |
Director |
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Name : |
Mrs. Kusum Mittal |
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Designation : |
Director |
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Name : |
Dr. S.K. Sharma |
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Designation : |
Director |
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Name : |
Dr. J.P. Srivastava |
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Designation : |
Director |
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Name : |
Dr. Shamsher Singh |
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Designation : |
Director |
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Name : |
Dr. Vishwanath B. Malkar |
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Designation : |
Director |
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Name : |
Mr. Ganesh Pawar |
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Designation : |
Company Secretary |
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Name : |
Dr. Vinay G. Nayak |
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Designation : |
Director |
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Name : |
Shri Ashok R. Pitaliya |
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Designation : |
Manager – Accounts |
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KEY EXECUTIVES
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Name : |
D.K. Jain & Company |
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Designation : |
Company Secretaries |
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Address : |
4th floor, Silver Ark Plaza, Narayan Kothi Square, 20 / A,
New Palasia, Indore, Madhya Pradesh |
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Name : |
Mr. Anurag Dutt |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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v Promoters Holding |
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Indian Promoters |
1429800 |
45.864 |
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Persons Acting in
Concert |
760 |
0.024 |
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Sub Total |
1430560 |
45.888 |
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v Non Promoters Holding |
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Mutual Funds and UTI |
1400 |
0.045 |
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Banks, Financial
Institutions, Companies
(Central/State Government/ Non-Government. Institutions) |
7300 |
0.234 |
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Sub Total |
8700 |
0.279 |
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v Others |
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Private Corporate Bodies |
146644 |
4.704 |
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Indian Public |
1490458 |
47.810 |
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NRI/OCBs |
41127 |
1.319 |
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Sub Total |
1678229 |
53.833 |
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Grand Total |
3117489 |
100.000 |
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BUSINESS DETAILS
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Line of Business : |
Manufacturing of Capsules to attain Zero – Defect in Production and to fully normalize operations. |
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Products : |
Products Description:
Hard Gelatin Capsule Shells I.P. Item Code : 9602 0030 |
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PRODUCTION STATUS
(As on 31.03.2007)
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Particulars |
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Unit |
Installed
Capacity |
Actual
Production |
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Hard Gelatin Capsule Shells I.P. |
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Nos in mins |
32,500 |
35,354 |
GENERAL
INFORMATION
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Customers: |
v US Vitamins v SOL Pharmaceuticals v Dr Reddy's Laboratories v Lupin Laboratories v Aristo Pharmaceuticals |
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Bankers : |
v IDBI Bank
Limited. v IndusInd Bank
Limited. v State-Bank of Indore v ICICI Bank v HSBC Limited v Citibank N.A. |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Rawka Agrawal
& Company Chartered Accountants, |
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Address : |
403, Arcade
Silver 56, 1, New Palasia, Indore - 452 001, Madhya Pradesh, India |
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Associates/Subsidiaries : |
The Medi-Caps Group
Companies include: 1. Medi-Caps
Institute of Technology and Management (MITM) 2. Medi-Caps Finance Limited 3. International
Institute of Foreign Trade and Research
(IIFTR) 4. Medpak India
Limited 5. Trapti
Investments (P) Limited 6. Mittal
Enterprises 7. Akshit Finance (P) Limited |
CAPITAL STRUCTURE
Authorized Capital :
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No. of Shares |
Type |
Value |
Amount |
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40,00,000 |
Equity Shares |
Rs. 10/- Each |
Rs. 40.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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36,68,580 |
Equity Shares |
Rs. 10/- Each |
Rs. 36.685 Millions |
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Subscribed capital |
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31,17,489 |
Equity Shares |
Rs. 10/- Each |
Rs. 31.174 Millions |
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Add: |
Forfeited Shares amount originally Paid Up |
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Rs. 2.755 Millions |
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Total |
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Rs. 33.930
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
33.930 |
33.930 |
33.930 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
344.325 |
268.132 |
210.638 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
378.255 |
302.062 |
244.568 |
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LOAN FUNDS |
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1] Secured Loans |
0.109 |
1.551 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
4.255 |
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TOTAL BORROWING |
0.109 |
1.551 |
4.255 |
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DEFERRED TAX LIABILITIES |
9.332 |
10.305 |
11.645 |
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TOTAL |
387.696 |
313.918 |
260.468 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
53.862 |
55.663 |
61.827 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
273.716 |
196.313 |
122.513 |
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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 |
22.965 |
25.742 |
28.161
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Sundry Debtors |
52.609 |
43.269 |
37.851
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Cash & Bank Balances |
11.760 |
8.233 |
15.355
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Other Current Assets |
0.000 |
0.000 |
0.000
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Loans & Advances |
19.744 |
29.364 |
33.144
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Total
Current Assets |
107.078
|
106.608
|
114.511 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
30.307 |
26.875 |
22.335
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Provisions |
16.653 |
18.357 |
17.182
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Total
Current Liabilities |
46.960
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45.232
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39.517 |
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Net Current Assets |
60.118
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61.376
|
74.994 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.566 |
1.133 |
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TOTAL |
387.696 |
313.918 |
260.468 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover (Including Other income ) |
268.801 |
240.335 |
240.000 |
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Profit/(Loss) Before Tax |
92.389 |
75.195 |
51.218 |
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Provision for Taxation |
10.209 |
11.853 |
11.085 |
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Profit/(Loss) After Tax |
82.180 |
63.342 |
40.133 |
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Export Value |
26.920 |
29.518 |
36.943 |
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Import Value |
2.434 |
1.794 |
1.361 |
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Expenditures : |
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Manufacturing Expenses |
38.091 |
37.847 |
43.489 |
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Raw Material Consumed |
57.735 |
53.538 |
57.352 |
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Salaries, Wages, Bonus, etc. |
25.114 |
25.154 |
25.122 |
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Excise Duty |
23.713 |
19.441 |
24.579 |
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Interest |
0.410 |
0.007 |
0.000 |
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Right Issue Expenses |
0.566 |
0.566 |
0.566 |
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Expenses of Previous Year |
0.617 |
0.139 |
0.603 |
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Depreciation & Amortization |
8.127 |
7.699 |
7.869 |
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Other Expenditure |
22.039 |
20.745 |
29.199 |
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Total Expenditure |
176.412 |
165.136 |
188.779 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 (1ST
Quarter) |
30.09.2007 (2nd
Quarter) |
31.12.2007 (3rd
Quarter) |
31.03.2008 (4Th
Quarter) |
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Sales Turnover |
46.300 |
41.800 |
44.800 |
46.800 |
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Other Income |
20.900 |
16.700 |
74.000 |
18.400 |
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Total Income |
67.200 |
58.500 |
118.800 |
65.200 |
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Total Expenditure |
36.700 |
33.000 |
35.600 |
37.600 |
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Operating Profit |
30.500 |
25.500 |
83.200 |
27.600 |
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Interest |
0.000 |
0.000 |
0.000 |
0.000 |
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Gross Profit |
30.500 |
25.500 |
83.200 |
27.600 |
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Depreciation |
2.000 |
2.100 |
2.100 |
2.100 |
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Tax |
1.800 |
3.000 |
11.000 |
3.000 |
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Reported PAT |
26.700 |
20.400 |
70.100 |
22.500 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt Equity Ratio |
0.00 |
0.01 |
0.02 |
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Long Term Debt
Equity Ratio |
0.00 |
0.01 |
0.02 |
|
Current Ratio |
1.91 |
2.07 |
1.88 |
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TURNOVER RATIOS |
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Fixed Assets |
1.30 |
1.24 |
1.32 |
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Inventory |
8.53 |
7.22 |
8.54 |
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Debtors |
4.33 |
4.79 |
5.53 |
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Interest Cover
Ratio |
150.25 |
0.00 |
0.00 |
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Operating Profit
Margin (%) |
32.85 |
22.97 |
23.62 |
|
Profit Before
Interest and Tax Margin (%) |
28.95 |
19.01 |
19.78 |
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Cash Profit
Margin (%) |
29.62 |
20.25 |
19.43 |
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Adjusted Net
Profit Margin (%) |
25.72 |
16.29 |
15.59 |
|
Return on Capital
Employed (%) |
17.75 |
13.56 |
17.80 |
|
Return on Net
Worth (%) |
15.80 |
11.71 |
14.26 |
LOCAL AGENCY FURTHER
INFORMATION
Fixed Assets
Ø
Free Hold Land
Ø
Building
Ø
Plant & Machinery
Ø
Furniture & Fixture
Ø
Vehicles
Ø
Computers
History:
Medi-caps was incorporated
by S L Mittal in Aug.'83 as a private limited company and was converted into a public
limited company in Mar.'86. Pharmaceutical companies procure empty hard gelatin
capsules from Medi-caps for dosage medicines meant for oral administration. The
company is the second-largest manufacturer of empty hard gelatin capsules in
India.
It takes several years for
a company manufacturing capsules to attain zero-defect in production and to
fully normalize operations. Medi-caps can claim to have achieved this. In
Apr.'95, the company offered 0.611Millions rights shares at a premium of Rs 116
to part-finance the Rs 91.9- Millions
expansion of its manufacturing facilities (from 2000 mln pa to 3440 mln
pa) by installing four high-speed automatic capsule-making machines.
The company's
manufacturing unit is located in Pithampur, Madhya Pradesh.. At present, it has
40 clients. The other group company of Medi-caps is Medi-caps Finance which is
engaged in finance related activities. In 1993, R C Mittal received the Glory
of India International award.
In 1995-96, the company enhanced the capacity of empty hard gelatin capsules by
250.0 Millions the company received ISO 9002 Certification during 1998-99. It
developed six sizes of the Hard Gelatin Capsules in 2002-03. The company is
closely working on commissioning of 13th Machine with 100% atomization. During
2002-03 the company established the export market in countries like China,
Thailand, Dubai, Malaysia, South Africa and Philippines.
REVIEW OF
OPERATIONS:
The favorable hike in profit was substantially due to the better
utilization of the manufacturing capacity, substantial continous efforts made
towards modernization, automation of the plant. During the year Company
achieved a total turnover of Rs. 207.627 millions in comparison of previous
year Rs. 194.631 millions
The company is in process of modernization of the existing
manufacturing facility to get better output and quality and in this process
they have already converted two machineries to high speed as paer latest design
thus increasing the output to a tune of 30% resulting cost saving in manpower
and electricity.
The financial health of the company has shown significant growth
in all the sectors, and the company could able to earn Rs. 82.180 millions
(previous year Rs. 63.343 millions) this income includes dividend and capital
gain on mutual fund of Rs. 57.836 millions. Due to strong financial planning
the company has maximized its value of investments and also foresee the
positive trends in the coming year.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT:
Industry structure and developments:
Indian pharmaceuticals market registered a growth of 14.3% during
2006-07 with the multinational pharmaceutical companies growing at 6.5% (Source
Org/IMS-MAT-2007). The Government continued focus on economic reforms. Its
commitment to increase its investment in health care a robust service sector
and India’s demographic profiles are expected to sustain the growth momentum in
the pharmaceuticals market. The Indian pharmaceutical market currently ranked 4th
in the world in terms of volume and 14th in terms of value, is
highly fragmented with more than 5000 players and going forward consolidation
is expected to take place for improved efficiency and productivity.
SWOT
ANALYSIS FOR THE COMPANY:
Strengths:
·
Strong in-house Research and Development
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Intregated supply chain
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Ability to deliver cost saving
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High quality manpower resources
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Centralized manufacturing activities at Pithampur Plant.
·
Zero Debt Company
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Strong financial planning.
Weaknesses:
·
Scarcity of Technical Expertise
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Controlling of process parameters is very critical
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Dependency on drug formulation companies
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Frequent fluctuation in market demand
·
Very sensitive process of manufacturing
Opportunities:
·
There is a very good demand of gelatin capsules in overseas
and India having good quantum in that and quality of Indian capsules recognized
in world.
·
The new Special Economic Zone has been set up at Pithampur
for Pharmaceuticals industries and many Multinational and national companies
are coming with their formulation plants, hence thy would be the nearest suppliers
of the capsules to their plants.
·
Due to improved capital market, there are favourable
conditions to invest the surplus funds in good securities and mutual funds for
multiple growth of the investors funds.
Threats:
·
India has one of the lower per capita health care
expenditure in the world
·
Aggressive price competition from local and multinational
players
·
Fast technology change in the manufacturing line of the
Company
·
Frequent change in Govt. policy for pharmaceutical industries.
·
Registration of patent by the users of the products of the
company.
·
Developed countries are very rigid in procuring capsules
from out of countries.
·
Competitiors from the new entrants in the Tax/Duty Exemption
area, which are enjoying these exemption benefits.
Outlook:
While they cannot predict a further performance, they believe
considerable opportunities will exist for sustained and profitable growth, not
only in the developing countries but also in the developed western countries.
The Company is in continuous process to launch new variety of capsules and
variants to meet out the demands in the coming year and also to expand its
marketing reach in other countries for growth in the export as well as domestic
turnover. The company with its continued focus on exports stands to gain a lot
from the emerging scenario:
Marketing and Export:
In domestic market the Company had added many multinational
companies in its client lists with improved quality of products as well as
services.
ISO: 9001:2000 CERTIFICATION:
As aware that the Company
is ISO: 9001:2000 complied companies which is the latest version of ISO series
and this will give further strength to the quality as well as international
recognition.
As per website Details:
About Us:
Medi-Caps Limited flagship company of Medi-Caps Group, is one of the
largest manufacturer of empty hard gelatin capsules in terms of manufacturing
capacity as well as market capitalization in India, incorporated in 1986,
Medi-Caps Limited entered the highly competitive market with a team of
dedicated professionals, duly supported by competent individuals in every
aspect of operation.
At Medi-Caps Limited a philosophy of growth has been consistently upheld
with good business practices. Clear focus, excellent infrastructure, a powerful
quality policy and a well defined management information system have helped the
company to achieve consistent growth.
Their product range comprises of six sizes ranging from 00,0el, 0, 1el,
1,2,3,4 in more than 1000 shades, the same is increasing as rapidly as Pharma
Industry itself.
Today they offer printing features that are best in the industry.
Medi-Caps Limited has pioneered many advanced features in product development
such as “Pearlz Capsules” (Metallic Colored) as well as Python Printing &
Li-Fill Caps.
Medi-Caps Limited continuously strives to offer its customers excellent
product, technical advice, and a through professional service that makes their product
tailor made for their customers both in India as well as abroad.
Their professional goals and corporate personality have blended so well
that today Medi-Caps Limited name has become synonymous with the best in the
Industry.
Company
They implicitly believe that the corporate responsibility extends beyond
the ambit of a company's facilities and offices.
And that the true corporate citizenship must include common cause with
the society.
With this belief, Medi-Caps encourage funds and develop numerous
education and human capital initiatives.
These initiatives are now recognized in Central India as model
approaches.
Mission
Their mission is to offer product as well as services of the highest
professional standards in order to maintain their role as the customer's vendor
of first choice.”
Professional
Excellence
At Medi-Caps Ltd.
a philosophy of growth has been consistently upheld with good business
practices. Clear focus, excellent infrastructure, a powerful quality policy and
a well defined management information system have helped the company to achieve
constant success.
A team of dedicated
professionals is ably supported by competent colleagues in every area ranging
from manufacturing, through quality assurance, administration and management,
to sale.
Regular interaction with
vendors, dealer, customers, employees and financial institutions, has helped to
built a clear path to success.
PRODUCT INFORMATION
They manufacture Empty Hard Gelatin Capsules in sizes 00,0el,0,1el,1,2,3,4
elongated , fortified with more than thousand shades which is growing as
rapidly as pharma industries.
QUALITY EXCELLENCE
A firm believer in the philosophy of Total Quality
Control Management, the company has evolved the
culture of systematic production that eliminates errors
in every stage of production.
Capsule production being a continuous process, representative samples
are regularly tested for physical defect, length, dome, double, wall thickness,
moisture content, colour shades, weight variation and other relevant
parameters.
The group's activities span manufacturing of Hard Gelatin Capsule
Shells, Education, Industrial Packaging & related products, Finance, Real
Estate and are a renowned name in central India.
The Flagship Company
Medi-Caps Limited has emerged as India's second largest & admired supplier
of empty hard gelatin capsules.
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.42.90 |
|
UK Pound |
1 |
Rs.83.76 |
|
Euro |
1 |
Rs.65.99 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & 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 |
|