MIRA
INFORM REPORT
|
Report Date : |
13.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
HUTCHISON
ESSAR LIMITED |
|
|
|
|
Formerly Known As : |
HUTCHISON
MAX TELECOM LIMITED |
|
|
|
|
Registered Office : |
Hutch
House, G Kadam Marg, Peninsula Corporate Park, Lower Parel, Mumbai – 400013,
Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.12.2005 |
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|
|
|
Date of Incorporation : |
25.03.1999 |
|
|
|
|
Com. Reg. No.: |
11-119108 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U32200MH1999PTC119108 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMH07197B |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACH5332B |
|
|
|
|
Legal Form : |
A
closely held public limited liability company. |
|
|
|
|
Line of Business : |
Providing
Telecom Services. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD
325000000 |
|
|
|
|
Status : |
Satisfactory
|
|
|
|
|
Payment Behaviour : |
Usually
correct |
|
|
|
|
Litigation : |
Clear |
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|
|
Comments : |
Subject
is one of the leading telecom service provider. General financial position is
satisfactory. Payments are usually correct and as per commitments. The
company can be considered good for any normal business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office / Corporate Office : |
Hutch
House, G Kadam Marg, Peninsula Corporate Park, Lower Parel, Mumbai – 400013,
Maharashtra, India |
|
Tel. No.: |
91-22-66645000 |
|
Fax No.: |
91-22-24963645
/ 66661222 / 66661200 |
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E-Mail : |
|
|
Website : |
DIRECTORS
|
Name : |
Mr.
Analjit Mohanbhai Singh |
|
Designation : |
Director
|
|
Address : |
15,
Aurangzeb Road, New Delhi – 110011, New Delhi |
|
Date of Birth/Age : |
11.01.1954 |
|
Date of Appointment : |
31.03.1995 |
|
Directorship
in Other Companies : |
v
Max
Ateev Limited v
Max
New York Life insurance Company Limited v
Max
Healthcare Institute Limited v
Dynavest
India Private Limited v
IDBI
Bank Limited v
Hero
Honda Motors Limited v
Hero
Corporate Services Limited v
Indian
School of Business v
Grow
Talent Company Limited v
Max
Heal Thstaff International Limited v
Acqvire
Talent Services Limited v
Malsi
Holdings Limited v
Max
Medical Services Private Limited v
Liquid
Investment and Trading Company Limited v
Mohair
Investment and trading Company Private Limited |
|
|
|
|
Name : |
Mr.
Cannion Fok Ning-Kin |
|
Designation : |
Director
|
|
Address : |
1 King
Tax Street, 10th Floor, Kowloon, Hong Kong |
|
Date of Birth/Age : |
22.08.1951 |
|
Date of Appointment : |
31.03.1995 |
|
|
|
|
Name : |
Mr.
Frank John Sixt |
|
Designation : |
Director
|
|
Address : |
Flat G
/ B, King Hts Bride, Court No. 28, Barker Road, The Park, Hong Kong |
|
Date of Birth/Age : |
29.11.1951 |
|
Date of Appointment : |
22.05.1998 |
|
|
|
|
Name : |
Dennis
Lui |
|
Designation : |
Director
|
|
Address : |
Duplex
5 Dynasty Villa, Dynasty Heights, Beacon Hill, Kowloon, Kong Kong |
|
Date of Birth/Age : |
02.03.1951 |
|
Date of Appointment : |
25.09.2001 |
|
|
|
|
Name : |
Mr.
Asim Ghosh |
|
Designation : |
Director
|
|
Address : |
64,
NCPA Apartments, ‘B’ Wing, Nariman Point, Mumbai – 400021, Maharashtra, India
|
|
Date of Birth/Age : |
07.12.1947 |
|
Date of Appointment : |
25.09.1998 |
|
|
|
|
Name
: |
Yu
Ting Chan |
|
Designation
: |
Director
|
|
Address
: |
6 B,
Chenyu Court, 22-24, Kennedy Road, Hong Kong |
|
Date
of Birth/Age : |
15.10.1950 |
|
Date
of Appointment : |
25.05.1998 |
|
Date
of Ceasing : |
01.02.2005 |
|
Directorship
in Other Companies : |
v
Usha
Martin Telematics limited v
UMT
Investments Limited v
Jaykay
Finholding India Private Limited v
Telecom
Investments India Private Limited |
|
|
|
|
Name
: |
Geoffrey
Donald Carolan |
|
Designation
: |
Whole
Time Director |
|
Address
: |
12th
Floor Urmi, 65 Worli Sea Face, Mumbai – 400025, Maharashtra, India |
|
Date
of Birth/Age : |
13.03.1966 |
|
Date
of Appointment : |
25.09.2001 |
|
|
|
|
Name
: |
Mr.
Naryan Subramaniam Ayyapankav |
|
Designation
: |
Director
|
|
Address
: |
1,
Smruthi Plot # 27, Pestom Sagar Road No. 4, Chembur, Mumbai – 400089,
Maharashtra, India |
|
Date
of Birth/Age : |
09.11.1960 |
|
Date
of Appointment : |
28.03.2003 |
|
Date
of Ceasing : |
20.05.2004 |
|
|
|
|
Name
: |
Mr.
Shivendra Hukumchand Gupta |
|
Designation
: |
Director
|
|
Address
: |
A1-62,
Mahindra Gardens, S. V. Road, Goregaon – West, Mumbai – 400062, Maharashtra,
India |
|
Date
of Birth/Age : |
12.08.1970 |
|
Date
of Appointment : |
28.03.2003 |
|
|
|
|
Name
: |
Mr.
Christopher John Foll |
|
Designation
: |
Whole
Time Director |
|
Address
: |
9-10,
Floor, Suraj Apartment, Bhulabhai Desai Road, Mumbai – 400026 |
|
Date
of Birth/Age : |
16.08.1956 |
|
Date
of Appointment : |
23.06.2003 |
|
|
|
|
Name
: |
B.
Anantharaman |
|
Designation
: |
Director
|
|
Address
: |
EC /
301-302, 3rd Floor, Emerald Court – I, Essel Towers, Mehrauli,
Gurgaon- 122002 |
|
Date
of Birth/Age : |
08.01.1955 |
|
Date
of Appointment : |
23.03.2004 |
|
Directorship
in Other Companies : |
v
Max
India Limited v
Max
New York Life Insurance Company Limited v
Max
Healthcare Institute Limited v
Max
Healthstaff International Limited v
Pharmax
Corporation Limited v
Trophy
Holdings Private Limited v
Alps
Hospital Private Limited v
Neeman
Medical International Asia Limited |
|
|
|
|
Name
: |
Mr.
Chetan Nanji Savla |
|
Designation
: |
Director
|
|
Address
: |
402,
Amartaru, 3 New, Nagardas Road, Andheri [East], Mumbai – 400069, Maharashtra |
|
Date
of Birth/Age : |
15.07.1968 |
|
Date
of Appointment : |
20.05.2004 |
|
|
|
|
Name
: |
Mr.
Ravikant Nandkishori Ruia |
|
Designation
: |
Director
|
|
Address
: |
Bin
Hamoodah Villa, Plot 992, 332/14, Villa 17, Juneirah |
|
Date
of Birth/Age : |
22.04.1949 |
|
Date
of Appointment : |
01.02.2005 |
|
|
|
|
Name
: |
Mr.
Anshuman Shashi Ruia |
|
Designation
: |
Director
|
|
Address
: |
67 A,
Walkeshwar Road, Opp. Birla School, Walkeshwar, Mumbai – 400006, Maharashtra |
|
Date
of Birth/Age : |
11.03.1971 |
|
Date
of Appointment : |
01.02.2005 |
|
|
|
|
Name
: |
Mr.
Vikash Hari Prasad Saraf |
|
Designation
: |
Director
|
|
Date
of Birth/Age : |
18.12.1968 |
|
Date
of Appointment : |
01.02.2005 |
|
|
|
|
Name
: |
Mr.
Yashodhan Madhusudan |
|
Designation
: |
Director
|
|
Address
: |
2,
Sumit, 31 Carmichael Road, Mumbai – 400026, Maharashtra |
|
Date
of Birth/Age : |
04.11.1947 |
|
Date
of Appointment : |
01.02.2005 |
|
|
|
|
Name
: |
Mr.
Sandip S. R. Das |
|
Designation
: |
Director
|
|
Address
: |
Flat
1001, 10th Floor, Citadel L. D. Ruparel Marg, Mumbai – 400006,
Maharashtra, India |
|
Date
of Birth/Age : |
11.01.1958 |
|
Date
of Appointment : |
01.02.2005 |
|
Directorship
in Other Companies : |
v
Aircel
Digilink India Limited v
Hutchison
Esar Cellurlar Limited v
Hutchison
Essar Telecom limited v
Hutchison
Essar South Limited v
Hutchison
Telecom East Limited |
|
|
|
|
Name
: |
Tim
Keith Lincoln Pennington |
|
Designation
: |
Director
|
|
Address
: |
Harbour
Plaza Hotel, Hunghom Kowloon, Hong Kong |
|
Date
of Birth/Age : |
24.11.1960 |
|
Date
of Appointment : |
01.02.2005 |
|
|
|
|
Name
: |
Mr.
Krishnan Seshan Iyer |
|
Designation
: |
Director
|
|
Address
: |
79
Tejal Road No. 2, Hindu Colony, Dadar, Mumbai – 400014, Maharashtra, India |
|
Date
of Birth/Age : |
09.08.1968 |
|
Date
of Appointment : |
10.12.2003 |
|
|
|
|
Name
: |
Mr.
Rajesh Begur |
|
Designation
: |
Alternative
Director |
|
Address
: |
Surya
Apartments, A – 501, Bhulbhai Desai Road, Mumbai – 400016, Maharashtra |
|
Date
of Birth/Age : |
01.10.1964 |
|
Date
of Appointment : |
14.06.2006 |
|
Directorship
in Other Companies : |
v
A.
R. A. Corporate Consultants Private Limited v
Aeneas
Advisors India Private limited v
Pride
Technologies Consulting India Private Limited v
Savvis
Communications Private limited v
Sendo
Cellular Telecom India Private Limited
|
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
|
No. of Shares |
|
Central
Depository Services India Limited |
|
324365481 |
|
Hutchison
Telecommunications India Limited |
|
18835021 |
|
Gupta
Hukumchand Shivendra |
|
10 |
|
Sunil
Ratanlal Ranka |
|
10 |
|
Krishnan
Seshan Iyer |
|
10 |
|
Al-Amin
Investments Limited, Mauritius |
|
15940496 |
|
Asian
Telecommunication Investments Mauritius Limited |
|
19238254 |
|
CCII
Mauritius Inc. Mauritius |
|
8756637 |
|
Essar
Telecom India Holdings Limited, Mauritius |
|
21254008 |
|
Vilsat
Investments Private Limited Joint Essar Teleholdings Limited |
|
49612857 |
|
Essar
Teleholdings Limited |
|
19796234 |
|
Euro
Pacific Securities Limited, Mauritius |
|
2629091 |
|
Hutchison
Telecommunication India Limited |
|
13045992 |
|
Indusind
Telecom Ventures Limited |
|
17535271 |
|
Jaykay
Finholding India Private Limited |
|
2033170 |
|
Max
Telecom ventures Limited |
|
10843882 |
|
Mobilvest,
Mauritius |
|
32881788 |
|
Prime
Metals Limited, Mauritius |
|
5258182 |
|
Telecom
Investments India Private Limited |
|
44459886 |
|
Trans
Crystal Limited, Mauritius |
|
28669371 |
|
Usha
Martin Telematics Limited |
|
32310362 |
BUSINESS DETAILS
|
Line of Business : |
Providing
Telecom Services. |
|
|
|
|
Products : |
Telecom
Services |
GENERAL
INFORMATION
|
No. of Employees : |
2000 |
|
|
|
|
Bankers : |
Not
Available |
|
|
|
|
Facilities : |
-- |
|
|
|
|
Auditors : |
Natraj
Ramkrishna Chartered
Accountants Price
Warehouse, 252, Veer Savarkar Marg, Mumbai – 400028, Maharashtra, India |
|
|
|
|
Associates/Subsidiaries : |
Aircel
Digilink India Limited CIN
No. : U64201DL1997PLC088088 Fascel
Limited CIN
No. : U32100GJ1995PLC035282 Hutchison
Essar Telecom Limited CIN
No. : L64202DL1997PLC088087 Hutchison
Essar South Limited CIN No.
: U74899DL1995PLC074451 Hutchison
Telecom East Limited CIN
No. : L32204WB1992PLC079998 |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
500000000 |
Equity
Shares |
Rs. 10/-each |
Rs. 5000.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
343100500 |
Equity
Shares |
Rs. 10/-each |
Rs. 3431.005 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.12.2005 |
31.12.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
3431.005 |
1084.388 |
|
|
2] Share Application Money |
|
15613.686 |
0.000 |
|
|
3] Reserves & Surplus |
|
64265.167 |
4697.572 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
83309.858 |
5781.96 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
9553.929 |
0.000 |
|
|
2] Unsecured Loans |
|
2200.000 |
0.000 |
|
|
TOTAL BORROWING |
|
11753.929 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
0.000 |
175.717 |
|
|
|
|
|
|
|
|
TOTAL |
|
95063.787 |
5957.677 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
5123.138 |
4878.785 |
|
|
Capital work-in-progress |
|
211.167 |
560.490 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
58193.756 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
3.603 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
9.827 |
10.444 |
|
|
Sundry Debtors |
|
1322.516 |
1115.571 |
|
|
Cash & Bank Balances |
|
1393.715 |
2452.541 |
|
|
Other Current Assets |
|
786.219 |
706.143 |
|
|
Loans & Advances |
|
32634.949 |
343.223 |
|
Total Current Assets |
|
36147.226 |
4627.922 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
4541.834 |
4086.742 |
|
|
Provisions |
|
73.269 |
22.778 |
|
Total Current Liabilities |
|
4615.103 |
4109.520 |
|
|
Net Current Assets |
|
31532.123 |
518.402 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
95063.787 |
5957.677 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.12.2005 |
31.12.2004 |
|
Sales Turnover [including other income] |
|
14149.884 |
12004.675 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
|
3924.928 |
3099.713 |
|
Provision
for Taxation |
|
204.474 |
558.952 |
|
Profit/(Loss)
After Tax |
|
3720.454 |
2540.761 |
|
|
|
|
|
|
Export
Value |
|
825.460 |
NA |
|
|
|
|
|
|
Total
Expenditure |
|
10224.956 |
8904.962 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.12.2005 |
31.12.2004 |
|
PAT / Total Income |
(%) |
|
26.29 |
21.16 |
|
|
|
|
|
|
|
Net
Profit Margin (PBT/Sales) |
(%) |
|
27.74 |
25.82 |
|
|
|
|
|
|
|
Return
on Total Assets (PBT/Total
Assets} |
(%) |
|
9.51 |
32.61 |
|
|
|
|
|
|
|
Return
on Investment (ROI) (PBT/Networth) |
|
|
0.05 |
0.54 |
|
|
|
|
|
|
|
Debt
Equity Ratio (Total
Liability/Networth) |
|
|
0.20 |
0.71 |
|
|
|
|
|
|
|
Current
Ratio (Current
Asset/Current Liability) |
|
|
7.83 |
1.13 |
LOCAL AGENCY
FURTHER INFORMATION
Subject
was incorporated on 21.02.1992 as Hutchison Max Telecom Limited. The name was
changed to the present name w.e.f. 25.03.1999.
Form 8 Particular for creation or modification of
charges
|
Corporation identity number or foreign company registrations number of the company |
U32200MH1999PTC119108 |
|
Name of the company |
HUTCHISON ESSAR LIMITED |
|
Address |
Hutch
House, G Kadam Marg, Peninsula Corporate Park, Lower Parel, Mumbai – 400013,
Maharashtra |
|
This Form is for |
Creation of charge |
|
Type of Charges |
Hypothecation |
|
Particular of the charge holder |
CIN : U66020MH1995PTC095507 IL AND FS TRUST COMPANY LIMITED IL AND FS FINANCIAL CENTRE, Plot No. C – 22, Block -, BA, Kurla Complex Bandra E, Mumbai – 400051, Maharashtra |
|
Nature or description of the instrument creating charge |
Deed of hypothecation dated 16.02.2006 executed by the company in favour of IL and FS Trust Company Limited as Security Trustee |
|
Date of the instrument creating charge |
16.02.2006 |
|
Amount Secure by the charge |
Rs. 67.100 Millions |
|
Description of the property charge whether it is a charge on |
Stock in Trade |
|
Particulars of the Property charged |
Companies all stocks and receivable and all plant and machinery as described in the deed of hypothecation dated 30.05.2006 |
Hutch
is the brand name of Hutchison Essar. It established its presence in India in
1994 and was one of the first cellular providers in the city of Mumbai. Over
time it has expanded operations across the country and is one of the most
respected cellular service providers known for providing world class and
innovative services.
Hutchison
Essar in India
Hutch established its presence in India in 1994 by acquiring the cellular license for Mumbai. It now has operations in 16 circles accounting for 70% of India's mobile customer base.
Hutchison Essar Limited, with about 18.4 million* customers, is one of the most reputed telecom companies in India. Over the years, it has been named the 'Most Respected Telecom Company', the 'Best Mobile Service in the country', and the 'Most Creative and Most Effective Advertiser of the Year'.
Hutchison Telecom is a part of the multinational conglomerate - Hutchison Whampoa which has its origins dating back to 1828 in Hong Kong. The Group operates five core businesses in 42 countries across the world, of which, Hutchison Telecom has been one of the pioneers in mobile multimedia communication and spans five continents.
The Essar
Group is one of India's largest corporate houses with interests spanning the
manufacturing and service sectors like Steel, Oil & Gas, Power, Telecom
& BPO, Shipping & Logistics and Engineering & Constructions. The
Group has an asset base of over Rs 20 billion (US$ 4.4 billion) and employs
over 4000 people.
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.45.16 |
|
UK
Pound |
1 |
Rs.85.99 |
|
Euro |
1 |
Rs.57.92 |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|