MIRA
INFORM REPORT
|
Report Date : |
27.03.2008 |
IDENTIFICATION
DETAILS
|
Name : |
HYDERABAD
CHEMICAL PRODUCTS PRIVATE LIMITED |
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Registered Office : |
Plot A-24 / 25,
APIE, Balanagar, Hyderabad – 500 037, Andhra Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
11.06.1990 |
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Com. Reg. No.: |
01-11356 |
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CIN No.: [Company
Identification No.] |
U24239AP1990PTC011356 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDH00375E |
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Legal Form : |
Private Limited
Liability Company |
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Line of Business : |
Manufacturing of
Pesticide Raw Material like “Technical”, “Carbendazim”, “Cyphermethrin”,
“Fenvalerate” and their formulations which it markets through its parent
company. |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
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 1100000 |
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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 company having satisfactory track. Directors are reported as
respectable, experienced and resourceful businessmen. Their trade relations
are reported as fair. General financial position is satisfactory. Payments
are reported as slow but correct. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office / Factory : |
Plot A-24 / 25,
APIE, Balanagar, Hyderabad – 500 037, Andhra Pradesh, India |
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Tel. No.: |
91-40-23772651/2502/1849 |
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Fax No.: |
91-40-23772595 |
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E-Mail : |
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Website : |
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Area : |
Owned |
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Location : |
Industrial area |
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Factory : |
Plot No. 60 &
61, I.D.A. Pasha Mylaram, Medak District, Pachammailaram – 502 307, Andhra
Pradesh. |
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Tel. No.: |
91-8455-246350/246351 |
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Fax No.: |
91-8455-246537 |
DIRECTORS
|
Name : |
Mr. Dipesh K.
Shroff |
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Designation : |
Chairman |
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Address : |
39, Hatkesh Society, NS Road, No. 6, Villapaule, Mumbai – 400056 |
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Date of
Birth/Age : |
03.02.1960 |
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Date of
Appointment : |
21.11.2003 |
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Name : |
Mr. Nellore
Sukumar |
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Designation : |
Managing Director |
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Address : |
6-3-883/a/10, Pasmavathi Palace, Punjagutta, Hyderabad, Andhra
Pradesh |
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Date of
Birth/Age : |
02.10.1951 |
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Date of
Appointment : |
11.06.1990 |
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Name : |
Ms. Shruti A.
Shroff |
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Designation : |
Director |
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Address : |
7, Charotan
Society, Old Padra Road, Vadodara – 390020 |
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Date of
Birth/Age : |
24.09.1950 |
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Date of
Appointment : |
21.11.2003 |
KEY EXECUTIVES
|
Name : |
SMR and Associates |
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Designation : |
Company Secretary |
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Address : |
6-3-668/10/1, 1st Floor, Durga Nagar Colony, Punjagutta,
Hyderabad – 500082, Andhra Pradesh, India |
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Tel No.: |
91-40-23418776 |
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Email : |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Hyderabad
Chemical Supplies Limited |
|
100000 |
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Bodies corporate |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Pesticide Raw Material like “Technical”, “Carbendazim”, “Cyphermethrin”,
“Fenvalerate” and their formulations which it markets through its parent
company. |
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|
|
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Products : |
v Carbendazim Technical – 38081019 v Dimethoate Technical – 38081019 v Ethion Technical – 38081019 v Cypermethrin Technical v Fenvalerate Technical v Formulations –Insecticides v
Technical
–Insecticides It’s
products range include :- v Acephate Formulations (75 % SP) v Acephate Technical v Carbendazim Technical v Carbofuram Formulations (3% CG) v
Chlorlyrilhols
Formulations, etc |
PRODUCTION STATUS
|
Particulars |
Unit |
|
|
Installed
Capacity |
|
Technical |
MT |
|
|
2000 |
|
Formulations |
MT |
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|
7500 |
|
Wind Power |
MT |
|
|
1.00MW |
GENERAL
INFORMATION
|
No. of Employees : |
About 500 |
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Bankers : |
State Bank of
Hyderabad, IDPL Colony Branch, Hyderabad – 500 037, Andhra Pradesh |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Raju & Prasad Chartered
Accountants |
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Address : |
401, Diamond
House, Amrutha Hills, Punjagutta, Hyderabad – 500082 |
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Tel. No.: |
91-44-23410404 |
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Fax No.: |
91-44-23410403 |
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E-Mail : |
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Group Companies
: |
Hyderabad
Chemicals Limited (HCL) CIN
No.: L24230AP1954PLC000736 Hyderabad
Chemical Products Limited (HCPL) |
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Parents
Company :: |
Ø Hyderabad Chemical Supplies Limited Plot A-24 / 25, A.P.I.E., Balanagar, Hyderabad – 500 037, Andhra Pradesh |
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Memberships : |
v Pesticides Manufacturers and Formulators
Association of India Pesticides Association of India |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20,00,000 |
Equity Shares |
Rs.10/-each |
Rs.20.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,00,000 |
Equity Shares |
Rs.10/-each |
Rs.10.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
10.000 |
10.000 |
10.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
269.154 |
226.229 |
181.170 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
279.154 |
236.229 |
191.170 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
82.634 |
7.305 |
14.399 |
|
|
2] Unsecured Loans |
42.735 |
49.377 |
61.306 |
|
|
TOTAL BORROWING |
125.369 |
56.682 |
75.705 |
|
|
DEFERRED TAX LIABILITIES |
31.977 |
29.247 |
22.455 |
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|
|
|
|
|
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TOTAL |
436.500 |
322.158 |
289.330 |
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|
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|
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|
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APPLICATION OF FUNDS |
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|
|
|
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FIXED ASSETS [Net Block] |
273.042 |
162.831 |
138.429 |
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|
Capital work-in-progress |
13.213 |
6.551 |
7.249 |
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|
|
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INVESTMENT |
8.091 |
8.090 |
10.595 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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|
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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Inventories |
94.184
|
84.623 |
107.697 |
|
|
Sundry Debtors |
179.976
|
154.759 |
209.266 |
|
|
Cash & Bank Balances |
6.854
|
2.287 |
15.569 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
79.467
|
81.887 |
52.018 |
|
Total
Current Assets |
360.481
|
323.556 |
384.550 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
157.572
|
125.160 |
213.783 |
|
|
Provisions |
60.755
|
53.710 |
37.710 |
|
Total
Current Liabilities |
218.327
|
178.870 |
251.493 |
|
|
Net Current Assets |
142.154
|
144.686 |
133.057 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
436.500 |
322.158 |
289.330 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
620.314 |
660.184 |
696.992 |
|
|
Total Income |
620.314 |
660.184 |
696.992 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
54.410 |
69.560 |
70.403 |
|
|
Provision for Taxation |
9.730 |
22.792 |
22.876 |
|
|
Profit/(Loss) After Tax |
44.680 |
46.768 |
47.527 |
|
|
|
|
|
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Earnings in Foreign Currency : |
|
|
|
|
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Total Earnings |
3.006 |
7.190 |
USD 114,300 EURO174600 |
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|
|
|
|
|
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Imports : |
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|
|
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Total Imports |
149.592 |
138.979 |
124.052 |
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|
|
|
|
|
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Expenditures : |
|
|
|
|
|
|
Depreciation & Amortization |
12.476 |
9.571 |
-- |
|
|
Other Expenditure |
553.428 |
581.053 |
626.589 |
|
Total Expenditure |
565.904 |
590.624 |
626.589 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total
Income |
(%) |
7.20
|
10.54 |
6.81 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.77
|
10.54 |
10.10 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.59
|
14.30 |
13.46 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19
|
0.29 |
0.37 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.23
|
1.00 |
1.82 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.65
|
1.81 |
1.52 |
LOCAL AGENCY
FURTHER INFORMATION
History
The company was originally incorporated as a Private Limited Liability
Company and subsequently the legal form was changed to present w.e.f. 26th
April, 1994.
It is a 100% subsidiary of Hyderabad Chemicals Supplies Limited.
It is a registered small scale unit.
Fixed
Assets
v
Land
v
Building
v
Plant & Machinery
v
Furniture & Fixture
v
Office Equipment
v
Electrical Installation
v
Vehicles
v
Computer
v
Factory Equipment
Bankers Charges
Report as per Registry
|
Name of the company |
HYDERABAD CHEMICAL PRODUCTS LIMITED |
|
Presented By |
N. Sukumar |
|
1) Date and description of instrument creating the change |
25.02.1994 Agreement for hypothecation of raw material, stock in process,
finished goods, book debts and receivables |
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2) Amount secured by the charge/amount owing on the securities of
charge |
Rs. 101.000 millions |
|
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 |
Raw material, stock in process, finished goods, book debts, Plant
& machinery, Land and Building |
|
4) Gist of the terms and conditions and extent and operation of the
charge. |
Interest at prime leading rate minus 1% at present 10% monthly rests.
Rate of interest as applicable by the bank from time to time |
|
5) Name and Address and description of the person entitled to the
charge. |
State Bank of Hyderabad, IDPL Colony Branch, Hyderabad – 500 037,
Andhra Pradesh |
|
6) Date and brief description
of instrument modifying the charge |
29.07.2005 agreement of hypothecation goods & assets Agreement of loan for overall limit Agreement for pledge of goods & assets Deed of guarantee for overall limit Letter regarding the grant of individual limits within overall limit |
|
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. |
Total limits enhanced from Rs. 67.500 to 101.00 Millions Details of limit C C – Rs. 15.000 DDP – Rs. 5.000 LCS – Rs. 80.000 BG – Rs. 1.000 Total – Rs. 101.000 Millions |
|
This form is for |
Modification of charge |
|
Charge identification number of the charge to be modified |
10012630 |
|
Corporate identity number of the company |
U24239AP1990PTC011356 |
|
Name of the company |
HYDERABAD CHEMICAL PRODUCTS PRIVATE LIMITED |
|
Address of the registered office or of the principal place of business in India of the company |
Plot A-24 / 25, APIE, Balanagar, Hyderabad – 500 037, Andhra Pradesh,
India |
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Type of charge |
|
|
Particular of charge holder |
State Bank of Hyderabad IDPL Colony Branch, Balanagar, Hyderabad – 500037, Andhra Pradesh,
India |
|
Nature of description of the instrument creating or modifying the
charge |
|
|
Date of instrument Creating the charge |
10.09.2007 |
|
Amount secured by the charge |
Rs. 119.000 Millions |
|
Brief particulars of the principal terms an conditions and extent and
operation of the charge |
Rate of Interest 1 % less than the Bank PLR subject to minimum of 12 % Terms of repayment One year and renewable from time to time based on the Company’s
performance Margin 10 % Cash Margin 25 % on Stocks Extent operation of the charge Exclusive Charge |
|
Short particulars of the property charged |
|
|
Date of latest modification prior to the present modification |
28.06.2006 |
|
Particulars of the present modification |
The overall limits have been enhanced to Rs. 119 Millions with
increase in Cash Credit Limits from Rs. 15 Millions to Rs. 30 Millions,
renewal of LC of Rs. 80 Millions, BG of Rs. 1.000 Million, DDP of Rs. 5.000 Millions
and fresh sanction of Stand by line of credit of Rs. 3.000 Millions. In
addition to the above overall limit term loan of Rs. 60 Millions already
availed. |
AS PER WEBSITE
Profiles
Hyderabad Chemicals Limited, commenced its
operations in the year 1971 with the objective of providing quality Crop
Protection Chemicals to the farming community. In 1994, as a backward
integration venture it started its sister unit, Hyderabad Chemical Products Limited. Today Hyderabad Chemicals is
one of the biggest manufacturers of Technical grade Pesticides and Formulation
in South India manufacturing 12 actives
and over 50 quality Pesticide
Formulations.
They have been able to supply a wide range of products at reasonable prices
because of an inbuilt basic philosophy of making production with superior
quality system, by implementing cost control at every stage, backward
integration for most of the technicals, large manufacturing facilities coupled
with automation, expansion of product portfolio, enhancement of process
efficiencies, excellent supply chain and logistics management, own power
generation through wind mills, and large marketing setup.
Research and Development
Their R&D team strives to provide quality Agrochemicals to the customers.
The team consists of highly experienced and qualified research personnel backed
by state-of-the-art R& D laboratory. The process for all the products has
been developed in house. They carry out extensive research in various areas
with special emphasis on agrochemicals. Their R & D unit is certified by the Department of Scientific & Industrial
Research, Government of India.
Quality Management System
They maintain stringent quality control
procedures right from the stage of raw materials procurement to delivery of the
finished products. They have a well laid quality management system with
an ISO 9001-2000 certification
from NQA - United Kingdom Accreditation Services, and most of their products
are ISI marked.
Distribution Network
They have a nation wide well structured
distribution network with efficient
logistic management that guarantees time bound delivery of their products. They have experienced &
competent technical and sales staff in all their offices across the country,
which enables quick response to the customer requests.
Beyond Business
They strongly believe in contributing to the society. After all 'Charity begins at home'. Many
community-welfare driven initiatives are taken for the betterment of lives of
underprivileged. C. C. Shroff Memorial
Hospital and Nandini Ramesh
Gandhi Charitable Trust are their initiatives in this direction.
Subject has been a pioneer in manufacturing pesticide formulations for
over three decades.
With its backward integration venture to manufacture pesticide actives,
Hyderabad Chemicals has carved a unique image in the market by offering a vast
range of products to meet the plant protection needs of a wide spectrum of
crops.
Hyderabad Chemicals, an ISO 9001-2000 company is primarily focused to provide
quality products at competitive prices and with optimum customer service.
Group Companies
They have been in the forefront of serving the farming community for
over three decades. All this can be credited to the single-minded dedication
and the strong foundation of their group companies, Hyderabad Chemicals Limited
(HCL) and Hyderabad Chemical Products Limited (HCPL).
They do customized synthesis of Pesticide Formulations to meet varied
requirements of customers across the globe. Their products are exported to
several markets of Europe, Middle East and to some of the Asian Countries. They
are gradually establishing their presence in potential markets like North
America, Sub-Sahara and the African countries. All their products are supported
with detailed technical data as per the international specification and
standards. They aim at customized, time bound delivery of quality products at
highly competitive prices.
Partners
They envision to exploit
growth opportunities in the Agrochemical Industry. They are looking for global
partners and strategic alliances in areas of mutual interest.
·
Research
and Development – Technology Partners
·
Sales
and Marketing - Resellers
·
Establishment
in Foreign countries - Joint Ventures
They are interested in
establishing their presence in South East Asian countries, Middle East, North
American and African countries on priority.
Farmers Training Programme: The company conduct two programmes every day in the
villages to interact with the farmers and educate them on various aspects of
agricultural practices and Safe use of Pesticides through audio visual
presentations. They answer the Questions posed by the individual farmers.
Dealers Training Programme: Since the Dealer is the vital link between the company and
the farmers, it conduct one day dealer training Programmes on use of Plant
Protection Chemicals.
Field Visits:
About 400 of Field workers visit the farmers' fields and offer them on the spot
advise.
Demonstration Projects: They conduct about 500 Demonstrations per annum for the
benefit of the farmers.
Soil Testing:
Portable Soil Testing Kits with the use of which identify the quality of the
soil and recommend necessary measures to the farmers on the spot.
Mailing Information to the Farmers: The company had a database of 90,000 Progressive
farmers with whom it communicate periodically on matters of interest to the
farmers.
Factory Visits for the Farmers: This is an interactive exercise wherein the farmers are
brought to manufacturing units at expense in buses/trains, to enable them to
get first hand information on Production, Quality, Label claims, application
methods and Safe use of Pesticides. This will also give them an occasion to
clarify their doubts on farm Practices.
Karshak Sahaya Vani - Online Information Service (Agriculture on Mobile)
A
novel initiative for farmers' education / advise is the launch of "Karshak
Sahaya Vani" by Hyderabad Chemical Supplies Limited in collaboration with
Dr. Ramesh Gandhi Foundation. "Karshak Sahaya Vani" is an online
farmer service center. Any farmer from the remotest village of Andhra Pradesh
can call up BSNL Toll Free No. 1600 33 4012 for an instant answer for his
queries with respect to farm practices from Sowing to Harvesting including
Plant Protection. The queries are answered / doubts clarified instantly by
Agricultural Scientists with vast experience and expertise from the Resource
Centre at Hyderabad.
Based
on the telephonic discussion, in case need arises, a technical representative
of the company located in the respective district head quarters is advised to
visit the farmer for on the spot study and offer right recommendation. A
computerised data base on the farmers, the issues raised by them and the advise
offered is maintained to facilitate easy retrieval of information for any
future need. The response from the farmers to the programme has been
over-whelming. It is gratifying to note that a number of satisfied farmers do
call back "Karshak Sahaya Vani" sharing feedback on the results based
on the advise. Apart from the farming community, even the Agro Input dealers /
Retailers use this service to enhance knowledge level and to take care of their
customer queries.
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.40.15 |
|
UK Pound |
1 |
Rs.80.54 |
|
Euro |
1 |
Rs.63.41 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
60 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|