MIRA
INFORM REPORT
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Report Date : |
25.09.2008 |
IDENTIFICATION
DETAILS
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Name : |
SHANTI IRON AND STEEL |
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Registered Office : |
# 690, Udyambag Industrial Estate, Belgaum-590008, Karnataka |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Year of Establishment : |
1.07.1974 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRS05965B |
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Legal Form : |
Partnership Concern with Unlimited Liability of the Partners |
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Line of Business : |
Manufacturer of Ready –to – assemble graded Grey Iron Components for
use in Diesel Engine, Tractor and Machine Tool Industries |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 150000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed concern meeting its normal
commitments timeously. Trade relations are fair. Business is active. The concern can be considered good for normal business dealings. |
LOCATIONS
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Registered Office/ Factory : |
# 690, Udyambag Industrial Estate, Belgaum-590008, Karnataka, India |
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Tel. No.: |
91-831-2440972 |
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Mobile No.: |
91-831-2440975 |
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E-Mail : |
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Website: |
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Area: |
170000 sq.ft |
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Note: Fully Equipped with required Plant and Machinery, In House R and D set
up, Laboratory, Furnaces, Mechanised sand Plant, Vertical Machining Centre,
CMM Machines etc. |
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PARTNERS
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Name : |
Mr. Santosh K Porwal |
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Designation : |
Partner |
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Name : |
Mr. Kantilal V Porwal |
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Designation : |
Partner |
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Name : |
Mr. Shantilal V Porwal |
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Designation : |
Partner |
KEY EXECUTIVES
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Name : |
Mr. Kantilala V Porwal |
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Designation : |
Finanance |
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E Mail : |
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Name : |
Mr. Shantilal V Porwal |
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Designation : |
Operations |
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E Mail : |
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Name : |
Mt. Santosh K Porwal |
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Designation : |
Marketing |
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E Mail : |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Ready –to – assemble graded Grey Iron Components for use
in Diesel Engine, Tractor and Machine Tool Industries |
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Exports : |
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Countries : |
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Finland ·
Italy |
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Imports : |
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Products : |
Machinery |
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Countries : |
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Italy ·
Taiwan ·
Japan ·
Germany |
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Terms : |
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Selling : |
Credit ( 60 Days) |
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Purchasing : |
Credit ( 30 Days) |
PRODUCTION STATUS
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Particulars |
Unit |
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Actual
Production |
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Ready –to – assemble graded Grey Iron Components |
MT |
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6000 |
GENERAL
INFORMATION
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Suppliers : |
·
Makino ·
Hittachi Seiki ·
Mario Carnagh ·
Batliboi ·
Sesa Goa Limited ·
Kirloskar Ferrous |
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Customers : |
·
Otis Lifts ·
Addison and Company Limited ·
Kirloskar Wartsila ·
New Holland ·
Manugraph ·
SAME Tractor ·
Victory Electromech ·
PRAGATI |
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No. of Employees : |
300 |
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Bankers : |
Canara Bank, Tilakwadi Branch, Belgaum |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Not Disclosed |
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Memberships : |
·
Indian Iron Foundrey Association ·
Engineering Export Promotion Council ·
Indo German Chamber of Commerce |
CAPITAL STRUCTURE
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Capital Investment : |
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Owned : |
Rs. 30.000 Millions |
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Borrowed : |
-- |
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Total : |
Rs. 30.000 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
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Particulars |
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31.03.2008 |
31.03.2007 |
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Sales Turnover |
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270.000 |
190.000 |
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Export Value |
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25.000 |
20.000 |
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Import Value |
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15.000 |
9.500 |
LOCAL AGENCY
FURTHER INFORMATION
AS PER WEBSITE
History:
1974 Company was established with
production of grey iron only.
1990 Expansion of foundry-unit II
in same premises.
2000 Expansion into higher value
addition. First (CNC Machine) installed.
2001 Received ISO 9002:1994
certificate from TUV Rheinland.
2001 Mechanization of foundry with
machine moulding, sand plant and mould conveying system.
2002 Second VMC Machine installed.
2003 Fully automatic Cold Box, core
shooter installed.
2003 ISO Certification upgraded
from ISO 9002:1994 to ISO 9001:2000.
2005 State of art new HMC Makino
a61 installed along with CNC CMM.
2006 2nd HMC a51 Makino
Machine Installed
2007 Foundry Capacity Expansion.
Phase-II
2007 3rd HMC Makino a61 Machine
installed
Process Control
Quality Assurance in Incoming Material
All the raw materials of production, including customer supplied
products are inspected & tested before handing over to the production
department. All the raw materials are procured from the approved suppliers
only. Raw materials, customer supplied products like pattern and jigs &
fixtures are checked in house while gauges & instruments are calibrated by
approved external calibration agency. All the above are accepted or rejected as
per respective quality plans. Only accepted material will be stored at
identified locations.
Quality Assurance in moulding:
Basically four types of molding process are followed
- Green sand molding
- Dry sand molding
- CO2 molding
- No bake molding
Moulding is carried out by machine molding and hand molding. Machine moulding
bay is completely mechanized with six moulding machine, sand plant. 20TPH and
mechanized mould conveying system with numetic line pushers. All the above
process are subjected to inspection right from sand preparation to molding, as
per the respective quality plans. If any deviation are noticed beyond the
specified limit, the molds are rejected after Inspection. After molding, spirit
based graphite paint is applied to the mould to achieve better finish.
Quality Assurance in Melting
Melting is carried out in medium frequency induction furnace,
Cupola and duplexing as per customers requirement. In al l cases charge mix are
weighted before charging. Before pouring temperature, chill test and C.E. meter
reading are taken if found within acceptance criteria then the liquid metal is
poured. If furnace and duplexing for next charge in case of cupola, deviated
metal of cupola is pegged in ingot molds. During pouring metal temperature and
pouring time are recorded are quality plans.
Quality Assurance in Core Making
There are three process in core making namely,
1. Cold Box
2. Oil Sand
3. No Bake
Cold box Core making is done on compax make fully automatic cold box core
shooter with capacity 50 litre machine. The entire system of sand drying
feeding into mix sand preparation dozing and feeding into machine is
machanised. Core process is also subjected to inspection, right from core sand
preparation to core making, as per the respective Quality plans. If any
deviations are noticed there the Cores are rejected. Every casting is
identified as per the following coding system:
SIS, XX, Y, ZZ, M.
SIS - Shanti Iron & Steel
XX - year i.e. 00 for 2000, 01 for 2001 etc
Y - Month A for Jan, B for Feb
ZZ - running heat no, 01, 02, 03, of the month
M - moulder's code - (A,B,C, for unit 2) (1,2,3, for unit 1)
Quality Assurance in Fettling:
Fettling department carry out knockout decoring, shot blasting and
fettling. Inspection is carried after knockout and also after fettling as per the
respective quality plans. Templates are used for inspecting profile of casting
and availability of machining allowances.
After fettling, painting process or stress relieving is carried out as
per the requirement specification of the customers.
Quality Assurance in Stress Relieving
Stress relieving is treated as a special process and gauges are
calibrated to certify as process cycle is closely monitored and required are
mentioned.
Quality Assurance in machining & CNC Machining
All the machining operations are carried out as per the respective
process charts. Process charts addresses operation jig & fixtures to
be used, instruments and gauge to be used for inspection, specified dimension,
frequency of check and special instruction if any.
All the instruments and gauges are periodically calibrated as per the
schedule from the approved calibration agency
Quality assurance in final inspection
All the machined components are checked as per the quality plan of
final inspection, so as to ensure the components meet all the specification of
the customer. After the final inspection, the components are packed as per the
instructions of the customer. Material Test Certificate, test bar and
inspection report accompany with every dispatch.
Power Supply
The company has 500 KVA of high tension line. To compensate for power
cuts, it has provision of running the entire unit uninterrupted on the
following generations:
" Cummins make 285 KVA - 1No.
" Kirloskar make 125 KVA - 1 No.
" Kirloskar make 62.5 KVA - 1 Nos.
" Cummins make 62.5 KVA - 1 Nos.
" Kirloskar make 140 KVA - 1 Nos.
Maintenance
To keep all the machines and equipments in good working conditions, they
have experienced team of electrical and mechanical personnel's. Maintenance department
carryout preventive maintenance as per the schedule. The department also attend
breakdown maintenance. Records are analyzed half yearly and action plan make so
as to reduce the over all breakdown time.
Quality Management System
The company works on the principal of continues improvement. Each
department are given objective goals in a respective work areas with a view to
eliminate or minimize it, so as to meet the overall companies quality policy
and resulting into improvement of quality management system
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.45.83 |
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UK Pound |
1 |
Rs.84.90 |
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Euro |
1 |
Rs.67.26 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
6 |
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--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--MARGINS |
-5~5 |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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48 |
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
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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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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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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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