MIRA
INFORM REPORT
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Report Date : |
03.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
SEQUENT SCIENTIFIC LIMITED |
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Formerly Known As : |
STRIDES RESEARCH AND SPECIALTY CHEMICALS LIMITED |
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Registered Office : |
# 201, Devarata, Sector 17, Vashi, Navi Mumbai – 400705, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
16.08.2002 |
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Com. Reg. No.: |
11-136868 |
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CIN No.: [Company
Identification No.] |
U24110MH2002PLC136868 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BRDS05969F |
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PAN No.: [Permanent
Account No.] |
AAHCS5204N |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
To carry on the business of contract research and manufacturing all
chemicals, synthetic, chemicals, elements, chemical compound, biological,
bacteriological, bio-chemicals, therapeutic, pharmaceuticals products. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 600000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having satisfactory
track. Directors are reported as
experienced and respectable businessmen.
Trade relations are reported as fair.
Business is active. 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/Factory : |
# 201, Devarata, Sector 17, Vashi, Navi Mumbai – 400705, Maharashtra,
India |
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Tel. No.: |
91-22-27893199 |
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Fax No.: |
91-22-27892942 |
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Email: |
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Corporate Office : |
120 A & B Industrial Area, Baikampady, Mangalore – 575011,
Karnataka, India |
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Tel. No. : |
91-824-2408738 |
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Fax No. : |
91-824-2407667 |
DIRECTORS
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Name : |
Mr. Arun Kumar Pillai |
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Designation : |
Director |
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Address : |
E-102, Adarsh Gardens, Jayanagar, 8th Block , Bangalore –
560 082, Karnataka, India |
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Date of Birth/Age : |
25.03.1961 |
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Date of Appointment : |
16.08.2002 |
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Name : |
Mr. K. Ramaraju Ravishankar |
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Designation : |
Director |
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Address : |
92, 6th Main, 5th Block, Jayanagar, Bangalore –
560041, Karnataka, India |
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Date of Birth/Age : |
08.10.1962 |
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Date of Appointment : |
16.08.2002 |
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Name : |
Mr. R. Ramachandran |
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Designation : |
Director |
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Address : |
B1 / 1202 South City, L & T Apartments, Bannerghatta Road,
Bangalore – 560076, Karnataka, India |
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Date of Birth/Age : |
04.07.1955 |
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Date of Appointment : |
16.08.2002 |
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Name : |
Mr. Kannan Natraj Sharma |
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Designation : |
Director |
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Address : |
404/6, 18th Main, 13th Cross, Venkateswara
Layout, Madiwala, Bangalore – 560068, Karnataka, India |
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Date of Birth/Age : |
20.03.1970 |
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Date of Appointment : |
26.05.2006 |
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DIN / PAN No. : |
00408118 |
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Name : |
Mr. R. S. Prasad |
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Designation : |
Director |
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Address : |
72, Sowbhagya, Bhagyanagar Co-operative Housing Society, Phase II, Kukatpally,
Hyderabad – 500072, Andhra Pradesh, India |
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DIN / PAN No. : |
00291106 |
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Name : |
Mr. Deepak Calian Vaidya |
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Designation : |
Director |
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Address : |
Suraj 249 / 251 Walkeshwar Roasd, Mumbai – 400 006, Maharashtra, India
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Date of Birth/Age : |
09.01.1945 |
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Date of Appointment : |
31.12.2007 |
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Name : |
Mr. Pallipuram Mathai Thampi |
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Designation : |
Director |
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Address : |
2B, Martha’s place, 58 Lavelle Road, 5th Cross Bangalore –
560 001, Karnataka, India |
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Date of Birth/Age : |
29.08.1934 |
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Date of Appointment : |
31.12.2007 |
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Name : |
Mr. Ravishankar Keerthapati Ramaraju |
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Designation : |
Director |
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Address : |
No. 1, Serenity park, Sarjapur Road, Kaikondranahalli Village, Carmelram
Post , Bangalore – 560 035, Karnataka, India |
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Date of Birth/Age : |
08.01.1962 |
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Date of Appointment : |
31.12.2007 |
KEY EXECUTIVES
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Name : |
Mr. V. Narayanan Hariharan |
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Designation : |
Secretary |
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Address : |
83 / 203, Panchavati, Vasant Vihar, Thane [West] – 400610,
Maharashtra, India |
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Date of Birth/Age : |
10.03.1955 |
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Date of Appointment : |
16.08.2002 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Strides Arcolab Limited |
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3049400 |
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Mr. K. R. Ravishankar |
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100 |
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Mr. S. Subramaniam |
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100 |
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Mr. P. Anilkumar |
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100 |
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Mr. Manoj Agarwal |
|
100 |
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Mr. R. J. Ramesh |
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100 |
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Mr. M. Venkatesha |
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100 |
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Total
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3050000 |
Equity Shares Breakup (Percentage of Total Equity):
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Sr No. |
Category |
Percentage |
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1 |
Bodies Corporate |
100.00 |
BUSINESS DETAILS
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Line of Business : |
To carry on the business of contract research and manufacturing all
chemicals, synthetic, chemicals, elements, chemical compound, biological,
bacteriological, bio-chemicals, therapeutic, pharmaceuticals products. |
PRODUCTION STATUS
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Particulars |
Installed
Capacity |
Actual
Production |
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Contract Research & Manufacturing |
265 MT |
-- |
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Bulk Drugs |
6 |
-- |
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Various Speciality Chemicals |
-- |
546564 |
GENERAL
INFORMATION
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Suppliers : |
· Plama Plastics Limited · Tensil Glass Works · Mystical Poly Containers Private Limited · V. K. Engineering Works · MEC Engineering works · Alfa Engineers · Jayashree Industries |
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Bankers : |
· State Bank of Indore Address 1: Unit No. 201, 2nd Floor,
Bikaner Signature Tower, No. 18, Richmond Road, Bangalore – 560025,
Karnataka, India Address 2: 18, Richmond Road, Bangalore – 560 025,
Karnataka, India · Corporation Bank IFB, Queens Road |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
P. Chandrasekar Chartered Accountants |
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Address : |
S 616, Manipal Centre, 47, Dickenson Road, Bangalore – 560042,
Karnataka, India |
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Holding Company : |
Strides Acrolab Limited CIN No. : L24230MH1990PLC057062 |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3100000 |
Equity Shares |
Rs. 10/- each |
Rs. 31.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3050000 |
Equity Shares |
Rs. 10/- each |
Rs. 30.500
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2006 [12 months] |
31.12.2005 [12
months] |
31.12.2004 [15
months] |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
30.500 |
30.500 |
30.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
130.087 |
122.931 |
153.128 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
160.587 |
153.431 |
183.628 |
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LOAN FUNDS |
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1] Secured Loans |
256.773 |
200.000 |
0.000 |
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2] Unsecured Loans |
120.000 |
0.000 |
188.400 |
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TOTAL BORROWING |
376.773 |
200.000 |
188.400 |
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DEFERRED TAX LIABILITIES |
21.100 |
19.000 |
34.200 |
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TOTAL |
558.460 |
372.431 |
406.228 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
268.013 |
272.275 |
264.796 |
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Capital work-in-progress |
174.303 |
18.507 |
5.027 |
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INVESTMENT |
0.309 |
0.304 |
0.304 |
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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 |
177.774
|
123.509
|
102.298 |
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Sundry Debtors |
72.270
|
57.794
|
55.586 |
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Cash & Bank Balances |
2.840
|
2.983
|
10.755 |
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Other Current Assets |
0.000
|
0.000
|
0.000 |
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Loans & Advances |
46.582
|
24.272
|
22.271 |
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Total
Current Assets |
299.466
|
208.558 |
190.910 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
154.381
|
102.853
|
60.871 |
|
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Provisions |
31.538
|
28.535
|
0.000 |
|
Total
Current Liabilities |
185.919
|
131.388 |
60.871 |
|
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Net Current Assets |
113.547
|
77.170 |
130.039 |
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MISCELLANEOUS EXPENSES |
2.288 |
4.175 |
6.062 |
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TOTAL |
558.460 |
372.431 |
406.228 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2006 [12
months] |
31.12.2005 [12
months] |
31.12.2004 [15
months] |
|
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Sales Turnover |
415.544 |
292.096 |
466.291 |
|
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Other Income |
4.878 |
4.786 |
1.313 |
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Total Income |
420.422 |
296.882 |
504.564 |
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Profit/(Loss) Before Tax |
11.055 |
[44.988] |
37.838 |
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Provision for Taxation |
3.900 |
[14.791] |
11.200 |
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Profit/(Loss) After Tax |
7.155 |
[30.197] |
26.638 |
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Earnings in Foreign Currency : |
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Export Earnings |
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|
224.311 |
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Commission Earnings |
145.272 |
127.200 |
0.000 |
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Other Earnings |
|
|
0.000 |
|
Total Earnings |
145.272 |
127.200 |
224.311 |
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Imports : |
|
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|
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Raw Materials |
N.A. |
N.A. |
34.238 |
|
|
Stores & Spares |
N.A. |
N.A. |
0.000 |
|
|
Capital Goods |
N.A. |
N.A. |
0.543 |
|
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Others |
N.A. |
N.A. |
0.000 |
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Total Imports |
N.A |
N.A. |
34.781 |
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Expenditures : |
|
|
|
|
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Material Cost |
194.586 |
153.941 |
190.295 |
|
|
Consumption of stores and spares parts |
34.239 |
21.479 |
0.000 |
|
|
Manufacturing, Administrative & Selling
Expenses |
0.000 |
0.000 |
150.725 |
|
|
Increase/(Decrease) in Finished Goods |
[17.697] |
[18.045] |
[36.960] |
|
|
Finance Charges |
0.000 |
0.000 |
34.926 |
|
|
Salaries, Wages, Bonus, etc. |
74.951 |
64.460 |
70.346 |
|
|
Payment to Auditors |
0.200 |
0.200 |
0.000 |
|
|
Interest |
23.994 |
23.755 |
0.000 |
|
|
Insurance Expenses |
3.233 |
3.483 |
0.000 |
|
|
Power & Fuel |
46.098 |
41.332 |
0.000 |
|
|
Depreciation & Amortization |
19.351 |
18.659 |
18.046 |
|
|
Other Expenditure |
30.408 |
32.607 |
2.386 |
|
Total Expenditure |
409.363 |
341.871 |
429.764 |
|
KEY RATIOS
|
PARTICULARS |
|
31.12.2006 [12
months] |
31.12.2005 [12
months] |
31.12.2004 [15
months] |
|
PAT / Total Income |
(%) |
1.70
|
[10.17]
|
5.27 |
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
2.66
|
[15.15]
|
7.49 |
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.49
|
[9.35]
|
8.30 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.07
|
[0.29]
|
0.20 |
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|
Debt Equity Ratio (Total Liability/Networth) |
|
3.50
|
2.28
|
1.35 |
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|
Current Ratio (Current Asset/Current Liability) |
|
1.61
|
1.38
|
3.13 |
LOCAL AGENCY
FURTHER INFORMATION
FORM 8:-
|
Name of the
company |
STRIDES RESEARCH
and SPECIALTY CHEMICALS LIMITED |
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Presented
By |
STRIDES RESEARCH
and SPECIALTY CHEMICALS LIMITED [Borrower] and State Bank of Indore [Lender] |
|
1) Date and
description of instrument creating the change |
a. Agreement of loan
for overall limit [Form C-1] regarding credit facilities aggregating Rs.
300.000 millions b. Agreement of
hypothecation of goods and assets [Form C-2] c. Deed of
guarantee for overall limit (Form C -4) from Mr. Arun Kumar and Mr. K R
Ravishankar d. Letter
regarding grant of individual limits within overall limit (From C – 5) e. Guarantee
Agreement of strides Arcolab Limited All dated
02.01.2006 along with the list containing the details of the fixed assets of
the company. |
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2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 300.000
millions comprising of the following: a) Corporate Loan
of Rs. 200.000 millions b) EPC / CC (FBP
/ FUBD)within EPC Rs. 75.000 millions c) Bank Guarantee
of Rs. 5.000 millions Letter of credit
of Rs. 20.000 millions |
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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 |
a) Corporate loan Exclusive first
charge over the fixed assets of the company (primary) Second charge
over current assets (collateral) Corporate
Guarantee of strides Arcolab Limited (collateral) Personal
Guarantee of Mr. Arun Kumar and Mr. K R Ravishankar b) EPC / CC of (FBP / FUBD within EPC Rs. 75.000
millions ) of Rs. 75.000 millions Exclusive first
charge over the current assets (primary) Second charge
over fixed assets (collateral) Corporate
Guarantee of Strides Arcolab Limited and personal guarantees of Mr. Arun Kumar
and Mr. K. R. Ravishankar [collateral] c) Letter of Credit of Rs. 20 millions Inter-alia
extension of charge over current assets [primary] Collateral and
Guarantee- as applicable to fund based limits d) Bank Guarantee of Rs. 5 millions Omnibus Counter
guarantee and extension of charge over current assets [primary] Collateral and
guarantee – as applicable to EPC Limit |
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4) Gist of the
terms and conditions and extent and operation of the charge. |
All the assets will be insured to their full value against all
possible risks with bank’s clause.
Interest, Penal Interest and Repayment Schedule etc. shall be as per
the sanction letter of the bank |
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5) Name and
Address and description of the person entitled to the charge. |
State Bank of Indore Unit No. 201, 2nd Floor, Bikaner Signature Tower, No. 18,
Richmond Road, Bangalore – 560025 |
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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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Corporation identity number or foreign company registrations number of
the company |
U24110MH2002PLC136868 |
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Name of the company |
SEQUENT SCIENTIFIC LIMITED |
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|
Address |
# 201, Devarata, Sector 17, Vashi, Navi Mumbai – 400705, Maharashtra,
India |
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This Form is for |
Modification of charge |
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Type of Charges |
· Immovable Property · Movable Property · Others |
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Particular of the charge holder
|
State Bank of Indore Address: 18, Richmond Road, IFB Queens
Road, Bangalore – 560 025, Karnataka, India Email : sbn3222@sbindore.co.in Corporation Bank Address: IFB Queens Road |
|||||||||||||||||||||
|
Nature or description of the instrument creating charge |
Recital Joint EM and Short particulars of title deeds to be deposited
and affidavit Letter from Corporation Bank for creation of joint Equitable mortgage
by deposit of titles deeds. |
|||||||||||||||||||||
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Date of the instrument creating charge |
17.04.2007 |
|||||||||||||||||||||
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Amount Secure by the charge |
Rs. 700.000 millions |
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Brief of the principal terms and conditions and extent and operation
of the charge |
Rate of interest: State Bank of Indore Working capital -1.50% below State Bank of Indore bench mark prime
lending rate (BPLR) which is presently 11.50% with a minimum of 10.00% p.a Term Loan : 1.50% below State Bank of Indore bench mark prime lending
rate (BPLR) which is presently 11.50% with a minimum of 10.00% p.a Corporation Bank Working capital and Term Loan: At 11.00% p.a floating, subject to
revision from time to time. Terms of repayment: Working capital : The working capital limits are repayable on demand
to the banks Term loans: The Principal amount is to be repaid in 20 quarterly
installments starting from the year 2008 with interest on the term loan to be
paid monthly as and when applied to the loan account. Margin:
Extent and operation of the charge: First pari passu charge by way of hypothecation of all current assets
,plant and Movable machinery of the Company First pari passu charge by way of equitable mortgage of the factory
land and building along with the immovable fixed assets situated thereon at
baikampady Industrial Area in Mangalore, Karnataka, and at GIDC Industrial
Estate Joint Equitable mortgage. |
|||||||||||||||||||||
|
Short particulars of the Property charged |
First pari passu charge by way of hypothecation of all current assets
,plant and Movable machinery of the Company First pari passu charge by way of equitable mortgage of the factory
land and building along with the immovable fixed assets situated thereon at
baikampady Industrial Area in Mangalore, (2 properties) (belonging to Strides Arcolab Limited) ,
At GIDC Industrial Estate at panoli District, Bharuch in Gujarat (belonging to Bombay Drugs and
Pharma Limited ), at GIDC. --Other |
|||||||||||||||||||||
|
Particulars of the present modification |
Original charge was created on 02.01.206 for Rs. 300.000 millions in
favour of State Bank of Indore. On 11.01.2007 the charges was modified for an
amount of Rs. 700.000 millions and the same is being modified for the same
amount with an addition of Joint Equitable mortgage of the property belonging
to the M/s Strides Arcolab Limited State Bank of Indore Sanction Amount --Rs. 480.000 millions Corporate Bank sanction Amount --Rs. 220.000 millions |
|||||||||||||||||||||
OTHER INFORMATION:
The subjects name was changed from Strides Research And Specialty Chemicals
Limited to Sequent Scientific Limited
Contingent
Liabilities:
Disputed Tax Liabilities on appeal: Sales Tax: Rs. 0.165 million [Rs.
0.165 million], Central Excise : Rs. 1.147 millions [Rs. 1.363 millions],
Income Tax Rs. 1.596 millions [Rs. 1.596 millions]
Fixed Assets:
· Free Hold Land,
· Lease Hold Land,
· Building,
· Plant and Machinery,
· Electrical Installations,
· Lab Equipment,
· Diesel Generator,
· Effluent Treatment Plant,
· Storage Equipment,
· Factory Equipment,
· R and D Equipment,
· Office Equipment,
· Computers,
· Furniture and Fixtures
· Motor Vehicles.
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.40.26 |
|
UK Pound |
1 |
Rs.79.88 |
|
Euro |
1 |
Rs.61.26 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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 |
|