MIRA
INFORM REPORT
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Report Date : |
06.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
ACE
REFRACTORIES - DIVISION OF ICICI
VENTURE FUNDS MANAGEMENT COMPANY LIMITED |
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Registered Office : |
Stanrose House, Ground Floor, Appa Saheb Marathe Marg, Prabhadevi,
Mumbai – 400025, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
18.05.1989 |
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Com. Reg. No.: |
166901 |
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CIN No.: [Company
Identification No.] |
U72200MH1989PLC166901 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NGPA03775C |
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PAN No.: [Permanent
Account No.] |
AAFCA3610G |
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Legal Form : |
A public limited liability
company. It is a subsidiary of ICICI Bank Limited, a listed company on the
Stock Exchange. |
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Line of Business : |
Providing
Financial Services |
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 1892250 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
ACE Refractories,
division of ICICI Venture Fund Management Company Limited and ultimately
subsidiary of ICICI Bank Limited. Available information
indicates high financial responsibility of the company. Trade relations are
fair. Payments are correct and as per commitments. The company can
be considered good for any normal business dealings. It can be regarded as a
promising business partner in medium to long run. |
LOCATIONS
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Registered Office : |
Stanrose House, Ground Floor, Appa Saheb Marathe Marg, Prabhadevi,
Mumbai – 400025, Maharashtra, India. |
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E-Mail : |
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Unit : |
Pushpakunj, 4th Floor, 26, Central Bazaar Road, Ramdas Peth, Nagpur – 440010, Maharashtra,
India. |
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Tel. No.: |
91-712-2460944 – 48 |
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Fax. No.: |
91-712-2530885 |
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E-Mail : |
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Factory 1 : |
P.O. Katni C.F., District Jabalpur , Katni -483504, Nagpur - 440010 |
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Tel. No.: |
91-7622-224564 |
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Fax No.: |
91-7622-224561 |
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Factory 2 : |
Plot No. A-1 (Part II) , Butibori Industrial Area, Nagpur - 440108 |
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Tel. No.: |
91-7104-265524 / 55 |
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Fax No.: |
91-7104-262722 |
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Regional Offices : |
Jeevan Deep, 1st Floor, 10, Sansad Marg, P.B. No. 199 New Delhi –
110001, India Tel.:91-11-3734097 Fax.:91-11-3360574 Meco House, 47 Mount Road, Chennai – 600002, Tamilnadu, India Tel.:91-44- 2857 0101, 2854 9489 Fax.: 91-44-2853 2818 Karaka Building No. 1, Ashram
Road, Navrangpura, P. O. Box 4103, Ahmedabad - 380 009 Tel.:91-79-2658 7643, 2658 7644 Fax.:91-79-2658 7503 Bombay Mutual , Bldg. 9,
Biplabi Trailokya Maharaj Sarani (Brabourne Road), Kolkata -
700 001 Tel.: 91-33-2242 2036, 2242 1976 Fax.:91-33-22427594 |
DIRECTORS
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Name : |
Ms. Lalita D.
Gupte |
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Designation : |
Director |
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Name : |
Mr. Gopal
Srinivasan |
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Designation : |
Director |
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Name : |
Ms. Renuka
Ramnath |
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Designation : |
Managing Director and Chief Executive Officer |
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Name : |
Mr. K.N. Memani |
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Designation : |
Director |
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Name : |
Mr. Madhabi Puri Buch |
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Designation : |
Director |
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Name : |
Mr. Rajeev Bakshi |
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Designation : |
Joint Managing Director |
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Name : |
Mr. Balu Doraisamy |
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Designation : |
Director |
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Name : |
Mrs. Kalpana Morparia |
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Designation : |
Director |
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Name : |
Mr. Nachiket Mor |
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Designation : |
Director |
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Name : |
Mr. R. Rajamani |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Anselm Pinto |
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Designation : |
Company Secretary |
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Name : |
Mr. K. V. Kamath |
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Designation : |
Chairman |
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Name : |
Ms. Beena M.
Chotai |
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Designation : |
Chief Financial
Officer |
BUSINESS DETAILS
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Line of Business : |
Providing
Financial Services |
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GENERAL
INFORMATION
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Bankers : |
ICICI Bank
Limited |
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Facilities : |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Holding Company : |
ICICI Bank Limited |
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Fellow Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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20000000 |
Equity Shares |
Rs. 10/- each |
Rs. 200.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1000000 |
Equity Shares |
Rs. 10/- each |
Rs. 10.000 millions |
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{Out of 1000000 equity shares issued by the
company 999994 shares are held by ICICI Bank Limited, the Holding Company (Year
ended March 31, 2007 – 999994 Equity Shares of Rs.10/- each)}
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
10.000 |
10.000 |
10.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
368.450 |
312.626 |
195.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
378.450 |
322.626 |
205.700 |
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LOAN FUNDS |
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1] Secured Loans |
1709.676 |
1731.332 |
15.600 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
1709.676 |
1731.332 |
15.600 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2088.126 |
2053.958 |
221.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1250.968 |
1344.101 |
66.800 |
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Capital work-in-progress |
41.044 |
22.495 |
33.700 |
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INVESTMENT |
319.677 |
551.839 |
62.700 |
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DEFERREX TAX ASSETS |
30.018 |
11.130 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
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0.000
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Sundry Debtors |
557.189
|
0.323
|
52.800
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Cash & Bank Balances |
109.836
|
46.504
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Other Current Assets |
0.000
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0.000
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Loans & Advances |
1128.768
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1268.249
|
502.100
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Total
Current Assets |
1795.793
|
1315.076 |
554.900
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
467.670
|
273.790
|
496.800
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Provisions |
881.704
|
916.893
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Total
Current Liabilities |
1349.374
|
1190.683 |
496.800
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Net Current Assets |
446.419
|
124.393 |
58.100
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2088.126 |
2053.958 |
221.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
|
31.03.2006 |
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Sales Turnover |
2616.228 |
1951.919 |
1069.000 |
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Other Income |
116.758 |
66.731 |
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Total Income |
2732.986 |
2018.650 |
1069.000 |
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Profit/(Loss) Before Tax |
1271.143 |
1070.328 |
313.900 |
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Provision for Taxation |
367.106 |
371.660 |
54.200 |
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Profit/(Loss) After Tax |
904.037 |
698.668 |
259.700 |
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Expenditures : |
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Staff Expenses |
323.277 |
237.218 |
NA |
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Establishment Expenses |
41.412 |
40.143 |
NA |
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Finance Charges |
212.331 |
69.369 |
NA |
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Depreciation & Amortization |
173.611 |
73.095 |
NA |
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Other Expenditure |
711.212 |
528.497 |
755.100 |
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Total Expenditure |
1461.843 |
948.322 |
755.100 |
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KEY RATIOS
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
Debt Equity Ratio |
4.91 |
3.31 |
0.04 |
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Long Term Debt Equity Ratio |
3.55 |
2.36 |
0.04 |
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Current Ratio |
0.90 |
0.89 |
1.11 |
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TURNOVER RATIOS |
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Fixed Assets |
1.84 |
2.61 |
8.35 |
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Inventory |
0.00 |
0.00 |
0.00 |
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Debtors |
9.80 |
330.92 |
15.33 |
|
Interest Cover Ratio |
6.99 |
16.42 |
829.89 |
|
Operating Profit Margin (%) |
60.63 |
60.09 |
67.29 |
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Profit Before Interest and Tax Margin (%) |
54.28 |
56.46 |
64.32 |
|
Cash Profit Margin (%) |
39.43 |
38.23 |
46.28 |
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Adjusted Net Profit Margin (%) |
33.08 |
34.61 |
43.31 |
|
Return on Capital Employed (%) |
71.63 |
100.19 |
250.26 |
|
Return on Net Worth (%) |
257.92 |
264.51 |
175.78 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets:
- Land Freehold
- Building
- Equipment
- Computers
- Furniture and
Fixtures
- Vehicles
HISTORY:
ACC Refractories was a division of India’s one of the largest cement
companies, The Associated Cement Companies Limited (ACC). In 1951 ACC
commissioned a refractory production unit at Katni, Madhya Pradesh to cater to
the need of its cement plants. This unit, by virtue of products developed by
in-house R and D effort, quickly grew to meet the challenges of wide spectrum
of industries. In 1989, this successful operation was given the autonomous
status and its very own identity.
Currently
ACC Refractories have two manufacturing units and five franchisees with a
capacity to produce and supply 160,000 MT of refractories comprising of
monolithics and shaped products.
It
has countrywide network of marketing offices and more than 40 specialist
refractory dealers. Today they are exporting their products to international customers spreading all over the world,
mainly to the Middle East, Africa, South and South East Asia, Europe and USA.
Their
manufacturing units and marketing offices are networked through SAP R/3
software.
Their
R and D centers at Thane and Katni are recognized by the Government of India’s
Department of Scientific and Industrial Research and they focus on
technology/product improvement, new product developments. Over 70% of their
products are the results of in-house Rand D efforts.
To
keep pace with technological changes in the user industry, ACC Refractories has
maintained the edge through assimilation of technology from a number of
International stalwarts, viz. Harbision Walker Refractories Company, INTOCAST
AG, Germany; Refratechnik GmbH, Germany; ALCOA Inc., USA and Terres
Refractories du Boulonnais, France.
ACE Refractories
inks pact with ACC
Mumbai, September 30, 2005
Associated Cement
Companies Limited (ACC) has entered into a business transfer agreement with ACE
Refractories for sale and transfer of the company’s refractories division inter
alia for Rs 2570 millions. The sale and transfer to ACE Refractories Limited, a
network company of ICICI Venture Funds Management Company Limited, will be
effective from today, the company informed the BSE today.
Nature of
Operations
The company is a public financial institution and provides venture capital
assistance to a wide spectrum of industrial sectors. The assistance is extended
through the Venture Funds and the Private Limited Liability Company Equity
Funds managed/advised by the company. The accounts of these Funds are
maintained separately and do not form part of the Company’s financial
statements.
Basis of Presentation
ICICI Venture Funds Management Company Limited maintains the Books of
Account in accordance with Section 209 of the Companies Act, 1956. The
accounting and reporting policies of the Company are in conformity with the
provisions of the Companies Act, 1956 and the Accounting Standards issued by
the Institute of Chartered Accountants of India. The Company’s assets and
liabilities are principally recorded on the historical cost basis and the
accrual methods of accounting policies followed are consistent with those
followed in the previous year.
DIRECTORS’ REPORT
Analysis of Financial Performance:
During the year, the Company was successful in creating exit paths for several investments
in India Advantage Fund - Series 1 (IAF Series 1). As a result, the Company has
earned performance fee of Rs. 530.7 million from IAF Series 1 during the year.
The total performance fee earned by the Company during the year has increased
to Rs. 578.6 million, from Rs. 28.7 million in the previous year. Fee income,
comprising management fee and performance fee, for the year has gone up to Rs.
2,530.9 million from Rs.1,936.5 million in the previous year.
As a result of increase in scale of operations on account of growth in Funds
under management, operating expenses, excluding depreciation, have increased to
Rs. 1,288.2 million from Rs. 875.2 million incurred during the previous year.
Profit before tax earned by the Company for the year under review increased by
19% to Rs. 1,271.1 million as compared with Rs. 1,070.3 million earned during
the previous year. After providing for tax, including deferred tax for the
current year, profit after tax has increased by 29% to Rs. 904.0 million from
Rs. 698.6 million earned during the previous year.
The Earnings per Share of the Company aggregated Rs. 904.0 per share during fiscal 2008 as compared with Rs. 698.6 per share during the previous year.
OPERATIONAL REVIEW:
Year in Retrospect:
The private equity market in India has dramatically changed over the last few
years. The industry is witnessing increased investment activity and growing
deal sizes. The Company continues to be a leader in the Indian private equity
market with significant growth in assets under management over the last few
years. The Company has been voted as the Indian Private Equity Firm of the year
for 2007 by readers of Private Equity International and subscribers of
PrivateEquityOnline.com. This recognition reflects the Company's ability over
the years to successfully execute groundbreaking and profitable transactions
and establish a reputation as a leading private equity player in India.
The investments made by various funds under management or advised by the
Company reflect a distinct approach to value creation with innovative
structures and a focus on relationship building. IAF Series 1, a private equity
fund raised in 2003-2004, is in divestment mode and has already returned over
145% of its corpus to its investors. India Advantage Funds III and IV (Real
Estate Funds) were raised in the year 2005 with the support of some of the most
respected financial institutions in India. The capital of the Real Estate Funds
stands fully committed as on March 31, 2008 with a diversified portfolio of
investments in the sector. India Advantage Fund Series 2 (IAF Series 2),
another private equity fund raised by the Company in 2005 - 2006, has so far
committed roughly 65% of its corpus. Considering the current pipeline deals,
IAF Series 2 is expected to be fully committed by September 2008. Last year,
the Company launched a new fund called India Advantage Fund VII (Mezzanine
Fund). The Mezzanine Fund is the first of its kind in India, and has made 3
investments to date.
The Directors of the Company have great pleasure in informing you that, during
the year under review, Rajeev Bakshi joined the organisation as Joint Managing
Director. He will strengthen the senior management of the Company and also
offer immense value to the deliberations of the Board.
Portfolio and Fund Strategy:
As of March 31, 2008, the Company was Manager/Advisor to Funds aggregating Rs.
95,517 million.
The India Advantage Fund Series 1:
The Directors are pleased to inform you that IAF Series 1 is in the divestment
mode and has till date distributed Rs. 16.11 billion to its investors against a
corpus of Rs. 10.90 billion.
India Advantage Fund III and IV (Real Estate Funds):
The Real Estate Funds raised by the Company have been fully committed with a
diverse mix of projects such as Commercial, Retail, Residential, Township and
IT Parks, with niche developers as partners. The Real Estate Funds have sourced
deals across Tier I, Tier II and Tier III cities. The Company has recruited
additional investment and project monitoring professionals in line with its
strategy to scale up operations and ensure timely execution of projects through
tight project monitoring.
India Advantage Fund Series 2 (IAF Series 2):
IAF Series 2 has built a well diversified portfolio around the Company's
articulated investment approach through disciplined investing. Despite an
increasingly competitive investment environment that raised overall valuations
in the market during calendar year 2007, IAF Series 2 maintained its
disciplined investment approach and managed to clinch investment opportunities
at attractive valuations in high growth sectors. The Company is seeking to
identify unique sectors and opportunities for deploying the balance funds of
IAF Series 2. The Company believes that given the continued growth in the
private equity industry and the existing deal pipeline, IAF Series 2 will be
fully committed in the next fiscal year. One specific segment in India where
the Company has identified a large opportunity is the health-care provider
segment in India. This sector is at an inflexion point with significant
increase in private spend anticipated over the next few years. IAF Series 2 has
started an initiative to establish an integrated healthcare company through a
diversified network of service providers across India. The Company has also
worked closely with a leading player in the automotive sector in India to
enable IAF Series 2 jointly acquire an overseas gear manufacturing company that
would leverage Indian manufacturing capability and markets. This transaction
would position the Company as a serious player in cross - border transactions.
Mezzanine Fund:
During the fiscal year 2008, India Advantage Fund VII (Mezzanine Fund-I) began
its investment operations. To date, three investments have been approved by
this Fund. The deal flow for Mezzanine Fund - I is robust and the Fund has been
selective in making its investments. The Fund has been witnessing maximum
demand from small and mid market growth companies that seek mezzanine finance
in order to postpone equity dilution. The Company is making efforts to
popularize the concept of mezzanine financing in India, as it expects this form
of financing to grow significantly in future.
Outlook:
The Company is constantly evaluating investment opportunities in India and overseas, and is taking initiatives to maintain its leadership position and continue to be a first mover in the private equity industry.
According to published statements by the Indian Government, it is estimated
that over USD 500 billion of investment is required to address infrastructure
requirements such as power, roads, airports, etc. in India.
Availability of sufficient and adequate infrastructure is one of the most critical requirements to sustain the growth of the Indian economy. The Company believes that the investment requirements of the infrastructure sector present an opportunity, and expects more Public Private Participation (PPP) in this sector. The Company has set up an Infrastructure Fund called India Advantage Fund IX during the fiscal year 2008 and this new Fund is expected to take shape in the next fiscal year.
The Company is also making efforts to raise funds overseas and for this purpose
it is considering setting up of representative offices abroad. A detailed
business plan in this direction is being evolved.
The Board expects that the current pipeline of private equity investment
proposals would translate into IAF Series 2 being fully committed by September
2008. The Company maintains a positive view on the outlook for the private
equity industry, both for the growth capital and buyout segments of the market.
Given the Company's positive outlook and its considerable expertise and
knowledge of private equity transactions, the Company proposes to raise a new
private equity fund based on similar investment themes as IAF Series 2 in the
next fiscal year.
The deployable corpus of the Real Estate Funds is fully committed and, given
the Company's positive view regarding the real estate market in India, it is
proposing to raise a new real estate fund in the next fiscal year. As the
Indian economy continues to grow, the Company feels that opportunities to
invest in strategic real estate and infrastructure related real estate assets
would emerge. The thesis of this new real estate fund is to identify and invest
in such assets.
In order to focus on client relationship building, investment sourcing and
project monitoring in the Northern parts of India, the Company proposes to set
up a branch office at Delhi. Besides, it also proposes to set up a team focused
on Real Estate opportunities at its Bengaluru office.
Over the years, the Company has maintained a vision of being a leading
alternative asset manager in India across multiple asset classes and to build
an institution that would be among the best in its class globally.
The Board is confident that, given the success of past and current funds managed by the Company, the increased depth of the management team, the emerging opportunities, geographical expansion of the investment team's presence into multiple cities, and raising new funds across private equity, infrastructure and real estate in the next fiscal year, the Company will move forward rapidly towards achieving its vision.
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.44.37 |
|
UK Pound |
1 |
Rs.78.09 |
|
Euro |
1 |
Rs.63.41 |
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 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--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 |
|