MIRA INFORM
REPORT
|
Report Date : |
09.05.2008 |
IDENTIFICATION
DETAILS
|
Name : |
EMAMI PAPER MILLS LIMITED |
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Registered Office : |
687 Anandapur, Kasba Golpark, E M Bye Pass, Kolkata – 700107, West
Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
26.09.1981 |
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Com. Reg. No.: |
034161 |
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CIN No.: [Company
Identification No.] |
L99999WB1981PLC034161 |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business : |
Manufacturing of Paper |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 5463000 |
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Status : |
Very 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 fine trade.
General financial position is satisfactory. Fundamentals are strong and healthy.
Payments are reported as usually correct and as per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business partners in a medium to
long-run. |
LOCATIONS
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Registered Office/ Investor Relations/ Marketing Division : |
687 Anandapur, Kasba Golpark, E M Bye Pass, Kolkata – 700107, West
Bengal, India |
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Tel. No.: |
91-33-66136264/ 66136471 |
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Fax No.: |
91-33-66136400 |
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E-Mail : |
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Website : |
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Head Office : |
8 Bentinck Street, 10th Floor, Kolkata – 700001, West
Bengal, India |
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Tel. No.: |
91-33-248 9330 / 6035 / 4076 / 6029/ 25488654 |
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Fax No.: |
91-33-248 9288 |
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Telex : |
021-2337 MONO IN |
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Factory/ Warehouse : |
Balgopalpur, Post Rasulpur – 756 020, Balasore, Orissa, INDIA |
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Tel. No.: |
91-6782-75 723/755/756 |
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Fax No.: |
91-6782-75 778 |
DIRECTORS
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Name : |
Mr. Radhe Shyam Goenka |
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Designation : |
Chairman cum Managing Director |
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Address : |
110 A, Southern Avenue, Kolkata – 700029, West Bengal, India |
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Date of Birth/Age : |
05.01.1947 |
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Qualification : |
M.Com., LL.B |
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Experience : |
30 years |
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Previous Employment
: |
Kemco Chemicals – Advisor |
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Date of Appointment : |
23.10.2000 |
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Name : |
Mr. Radhe Shyam Agarwal |
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Designation : |
Director |
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Address : |
118, Southern Avenue, Kolkata – 700029, West Bengal, India |
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Date of Birth/Age : |
06.01.1946 |
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Date of Appointment : |
26.03.1994 |
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Name : |
Mr. Avinash Chandra Gupta |
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Designation : |
Managing Director |
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Address : |
Gulmohar Villa, 15 Tnbiswas Road, Kolkata 24 Parganas (North), Kolkata
– 700029, West Bengal, India |
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Date of Birth/Age : |
15.09.1937 |
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Qualification : |
B. Sc. |
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Experience : |
42 years |
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Date of Appointment : |
02.07.1992 |
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Name : |
Mr. Manish Goenka |
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Designation : |
Director |
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Address : |
110 A, Southern Avenue, Kolkata – 700029, West Bengal,
India |
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Date of Birth/Age : |
07.02.1974 |
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Date of Appointment : |
01.02.2000 |
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Name : |
Mr. Aditya Vardhan Agarwal |
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Designation : |
Director |
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Address : |
118, Southern Avenue, Kolkata – 700029, West Bengal, India |
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Date of Birth/Age : |
06.01.1975 |
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Date of Appointment : |
23.10.2000 |
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Name : |
Mr. Mangilal Jain |
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Designation : |
Director |
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Address : |
373 Garcha Road, Kolkata – 700019, West Bengal, India |
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Date of Birth/Age : |
14.07.1931 |
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Date of Appointment : |
30.04.2001 |
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Name : |
Mr. Shree Krishna Khaitan |
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Designation : |
Director |
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Address : |
7 Keyatala Lane, Kolkata – 700019, West Bengal, India |
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Date of Birth/Age : |
15.12.1939 |
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Date of Appointment : |
24.01.2001 |
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Name : |
Mr. Shrawan Kumar Todi |
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Designation : |
Director |
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Address : |
2 Queens Park, Kolkata – 700019, West Bengal, India |
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Date of Birth/Age : |
15.08.1943 |
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Date of Appointment : |
05.04.2003 |
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Name : |
Mr. U. Gururaja Bhat |
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Designation : |
Director |
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Address : |
A3, Amaravatee Appartments, 2nd Main Road, Gandhi Nagar, Adyar,
Chennai – 600020, India |
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Date of Birth/Age : |
15.04.1938 |
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Date of Appointment : |
26.09.2003 |
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Name : |
Mr. Subal Chandra Shah |
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Designation : |
Director |
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Address : |
Flat No.8, Floor 5th, Sunny Park Appartments, 6 Sunny Park,
Kolkata – 700019, West Bengal, India |
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Date of Birth/Age : |
09.12.1957 |
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Date of Appointment : |
23.03.2004 |
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Name : |
Mr. Nandananadan Mishra |
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Designation : |
Director |
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Address : |
Flat No.D053, Belvendere Park, DLF Phase – III, Gurgaon – 122002,
Haryana, India |
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Date of Birth/Age : |
20.10.1942 |
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Date of Appointment : |
22.03.2006 |
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Name : |
Mr. Ram Krishna Agarwal |
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Designation : |
Director |
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Address : |
F D – 226, Sector III, Salt Laxe City, Kolkata – 700091, West Bengal,
India |
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Date of Birth/Age : |
28.08.1952 |
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Date of Appointment : |
24.01.2001 |
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Name : |
Mr. J. P. Kanoria |
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Designation : |
Director |
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Name : |
Mr. P. S. Patwari |
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Designation : |
Executive Director |
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Address : |
58 B Block, D New Alipore, Kolkata – 700053, West Bengal, India |
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Date of Birth/Age : |
126.03.1955 |
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Date of Appointment : |
28.11.1994 |
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Name : |
Mr. Ramesh Chandra Mall |
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Designation : |
Managing Director |
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Address : |
Bunglow No.22, Wellington Enclave, Rukmini Devi Colo, Phase – II, AOC
Centre, West Marredpally, Secunderabad – 500003, Andhra Pradesh, India |
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Date of Birth/Age : |
01.01.1948 |
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Date of Appointment : |
21.12.2007 |
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Name : |
Mr. R. N. Rath |
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Designation : |
Nominee Director |
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Nominee Company : |
Nominee of IPICOL |
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Name : |
Mr. B. M. Dash |
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Designation : |
Nominee Director |
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Nominee Company : |
Nominee of OSFC |
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Name : |
Mr. S. K. Mondal |
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Designation : |
Nominee Director |
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Nominee Company : |
Nominee of IDBI |
KEY EXECUTIVES
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Name : |
Mr. Ghanshyam Saraf |
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Designation : |
Company Secretary |
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Address : |
AE 397, Salt Lake City, Sector I, Kolkata – 700064, West
Bengal, India |
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Date of Birth/Age : |
01.01.1957 |
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Date of Appointment : |
28.05.1994 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
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Category |
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Percentage |
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Bodies corporate (not mentioned above) |
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88.69 |
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Directors or relatives of directors |
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9.03 |
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Other top fifty shareholders (other than listed above) |
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1.31 |
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Others |
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0.97 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Paper |
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Products : |
· Newsprint Paper · Writing
and Printing Paper
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Brand Name : |
“EMAMI”. |
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Imports : |
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Countries : |
Singapore |
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Terms : |
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Selling : |
Cash, Credit and Contract terms |
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Purchasing : |
Credit, Contract and L/C |
PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
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Paper |
M.T. |
32,200 M.T. |
GENERAL
INFORMATION
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Customers : |
· Wholesalers · Garg Rulling and Binding Works, Raipur, India · Gupta and Company, Balangir, Orissa, India · International Paper Concern, Calcutta, West Bengal, India · Jain Brothers, Siliguri, India · Jayshree Traders, Calcutta, West Bengal, India · Paper and Board House, Calcutta, West Bengal, India · Ram Narayan Badridas, Patna, India · Seema Paper Industries, Raigarh, Maharashtra, India · Shree Sakambari Devi Enterprises, Calcutta, West Bengal, India · Sri Balaji Private Limited, Hyderabad, Andhra Pradesh, India · United Sales Corporation, Cuttack, Orissa, India · Vikash
Udyog, Ranchi, Bihar, India |
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Suppliers : |
· Annapurna
Engineering and Manufacturing Private Limited · Cethar
Vessels Limited · Estern
Trade Centre · Engineering
Construction Corporation · Fibrotech
Machines Private Limited · Gammon
Dunkerly and Company Limited · Laduram
Toshniwal and Sons · Larsen
and Toubro Limited · Measurex
Asia Inc. · SPB
Projects and Consultancy Limited · Tata
Honeywell Limited |
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No. of Employees : |
600 |
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Bankers : |
· State Bank of Bikaner and Jaipur Kolkata, West Bengal, India · State Bank of India Kolkata, West Bengal, India · IDBI Bank Limited, Kolkata |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
S. K. Agrawal and Company Chartered Accountant |
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Address : |
4-A, Council House Street, Kolkata – 700 001, West Bengal, India |
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Name : |
Salarpuria Jajodia and Company Chartered Accountant |
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Address : |
7 V R Avenue, Kolkata – 700072, West Bengal, India |
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Parent Company : |
A Emami Group Company |
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Subsidiaries : |
· Prestige Vyapaar Limited |
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Group Companies : |
· Emami
Limited - Personal & Health Care · AMRI
Hospitals, Kolkata · CRI
Limited, Kolkata · Star
Mark Shoppers City, Kolkata · South
City Project, Kolkata · Other
Real Estate Projects · New
Ventures |
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Associates : |
· Classic Plastics Private Limited · Deesha Communication Private Limited · Emami Limited · Emami Foods Limited · EPL Securities Limited · EPL Ventures Limited · Frank Ross Company Limited · Gulmohar Paper Limited · Himami Limited · J B Marketing and Services Limited · J P Films Limited · Kemco
Chemicals |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
62500000 |
Equity Shares |
Rs.2/- each |
Rs.125.000 Millions |
|
10000 |
Preference Shares |
Rs.100/- each |
Rs.1.000 Million |
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Total |
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Rs.126.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
60499050 |
Equity Shares |
Rs.2/- each |
Rs.120.998 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
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 |
120.998 |
120.998 |
120.998 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1244.752 |
1068.688 |
512.653 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1365.750 |
1189.686 |
633.651 |
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LOAN FUNDS |
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1] Secured Loans |
2946.187 |
632.900 |
406.493 |
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2] Unsecured Loans |
410.938 |
229.241 |
5.149 |
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TOTAL BORROWING |
3357.125 |
862.141 |
411.642 |
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DEFERRED TAX LIABILITIES |
113.898 |
84.125 |
0.000 |
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TOTAL |
4836.773 |
2135.952 |
1045.293 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1034.101 |
875.051 |
687.465 |
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Capital work-in-progress |
2166.068 |
429.024 |
0.200 |
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INVESTMENT |
6.199 |
6.204 |
18.889 |
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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 |
223.046
|
211.009 |
200.419 |
|
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Sundry Debtors |
154.006
|
114.629 |
128.701 |
|
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Cash & Bank Balances |
629.817
|
29.994 |
7.365 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
907.713
|
639.712 |
201.306 |
|
Total
Current Assets |
1914.582
|
995.344 |
537.791 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
270.021
|
107.585 |
109.776 |
|
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Provisions |
14.156
|
62.086 |
89.532 |
|
Total
Current Liabilities |
284.177
|
169.671 |
199.308 |
|
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Net Current Assets |
1630.405
|
825.673 |
338.483 |
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.256 |
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TOTAL |
4836.773 |
2135.952 |
1045.293 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
|
1356.772 |
1286.637 |
|
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Other Income |
|
507.463 |
10.564 |
|
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Total Income |
|
1864.235 |
1297.201 |
|
|
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|
|
|
|
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Profit/(Loss) Before Tax |
|
668.316 |
26.745 |
|
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Provision for Taxation |
|
29.344 |
3.387 |
|
|
Profit/(Loss) After Tax |
|
638.972 |
23.358 |
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Expenditures : |
|
|
|
|
|
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Raw Material Consumed |
|
796.715 |
763.753 |
|
|
Salaries, Wages, Bonus, etc. |
|
85.541 |
84.751 |
|
|
Managerial Remuneration |
|
5.796 |
5.950 |
|
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Payment to Auditors |
|
0.245 |
0.215 |
|
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Interest |
|
14.367 |
25.490 |
|
|
Insurance Expenses |
|
5.340 |
5.076 |
|
|
Power & Fuel |
|
132.909 |
123.687 |
|
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Other Expenditure |
|
155.006 |
261.534 |
|
Total Expenditure |
|
1195.919 |
1270.456 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
NA
|
34.27 |
1.80 |
|
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|
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|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
NA
|
49.26 |
2.08 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
NA
|
35.73 |
2.18 |
|
|
|
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|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
NA
|
0.56 |
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.67
|
0.87 |
0.96 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
6.74
|
5.87 |
2.70 |
LOCAL AGENCY FURTHER
INFORMATION
Form 8:
|
Corporate
identity number (CIN) Foreign company registration number |
L99999WB1981PLC034161 |
|
Name of the
Company |
EMAMI PAPER MILLS LIMITED |
|
Address |
687 Anandapur, Kasba Golpark, E M Bye Pass, Kolkata – 700107, West
Bengal, India |
|
This form is for |
Modification of charge |
|
Type of Charge |
Immovable
Property |
|
Particulars of
the charge holder |
Unit Trust of India
Investment Advisement Services Limited UTI Tower, GN
Block, Bandra Kurla Complex, Bandra East, Mumbai – 400051, Maharashtra, India CIN :
65993MH1988GOI047756 Email: vivek.kumar@uti.co.in |
|
Nature or description
of the instrument(s) creating or modifying the charge |
Declaration and
undertaking No instrument was
executed but to on 28.03.2008, a joint pari passu mortgage was created by the
company in favour of Uti-IASL by deposit of title deeds with IDBI Bank
Limited, Kolkata acting as agent of the UTI-IASL |
|
Date of the
instrument creating or modifying the charge |
28.03.2008 |
|
Amount secured by
the charge |
Rs.658.020
Millions |
|
Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of
Interests: The Aggregate of
the applicable Margin and 6 month LIBOR Terms of
Repayments: The borrower
shall repay the drawn payment in 24 equal quarterly installment, 1st
installment being due on end of 9th quarter from the Average
Drawdown Date. Margin: 1.00% p.a. Extent and
operations of Charge: First Pari Passu
charge on the company movable fixed assets (both present and future) situated
at Balasore in the state of Orissa and kolkata in the state of west Bengal. Others: Disbursement has
been made in US$ i.e. USD 16.500 Millions. The Loan amount has been converted
in to Rupee @ 1US$= Rs.39.88 as on the date of filleting this form, for the
completion of this form. |
|
Short particulars
of the property charged (including location of the property) |
Free hold land
admeasuring 24.60 acres situated in Village/ Mouza Raslpur, P S Remuna
District Balasore In the state of Orissa. Land appertaining
to paper mill having a built up area of 6623.83 sq. mtrs at RN Tagore Road,
Kolkata and Trailakhya Biswas Road, Kolkata, P S Baranagar Lease hold land
admeasuring 50.00 acres situated in IDCO Industrial Complex at Balgopalpur, P
S Remuna. Tehsil Balasore, District Balasore` in the Sate of Orissa. |
|
Particular of the
present modification |
By this
modification, the over all limit remains the same at Rs.658.020 Millions,
consequent upon the present modification,
the Unit Trust of India Investment Advisory services limited (Security
Trustee of ICICI Bank) has first pari passu mortgage charge of the company
immovable properties situated at Balasore in the state of orissa and in
Kolkata in the state of West Bengal, for its team loan of USD 16.500 Millions
equivalent to Rs.658.020 Millions |
Corporate Profile:
Subject is the largest newsprint manufacturer in Eastern
India and has embarked on an expansion to emerge as one of the largest in its
industry in India.
Subject, (established in 1982) is a paper mill based on recycled - fiber
located in Balasore (Orissa) and Kolkata (West Bengal).
The Company is a constituent of the Rs.10000.000 Millions Emami Group, which
possesses diverse business interests comprising FMCG, writing instruments,
healthcare, retail departmental stores and real estate.
Industry structure and development:
The Indian paper industry - comprising writing and printing
paper, industrial paper, newsprint and speciality paper - is the fifteenth largest
in the world. The industry has a strong and proportionate link with the
national GDP, with GDP expected to grow in double digits over the foreseeable
future, the demand and consumption of paper is expected to record a CAGR in
excess of 6 per cent.
The Indian Government has placed a larger emphasis on education as a part of
its reforms agenda. Relevantly, the Government enhanced its allocation towards
education to Rs.241150.000 Millions during 2006-07, which should enhance the
off take of printing and writing paper, a segment in which your company
belongs.
Advancements in printing technology, increasing role of the print media well as
a larger demand of multi colored advertisements has resulted in the robust
growth of the newsprint demand.
Subject is an established brand in this space. The company embarked on a major
Rs.3300.000 Millions expansion to provide an additional capacity of 85,000 TPA,
evolving the company into one of the largest newsprint manufacturers in India.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.41.79 |
|
UK Pound |
1 |
Rs.81.60 |
|
Euro |
1 |
Rs.64.01 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|