MIRA
INFORM REPORT
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Report Date : |
13.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
RELIANCE COMMUNICATION INFRASTRUCTURE LIMITED |
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Registered Office : |
84A, Mittal Court, Nariman Point, Mumbai ;400 021, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
17.07.1997 |
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Com. Reg. No.: |
109474 |
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CIN No.: [Company
Identification No.] |
U99999MH1997PTC109474 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELR10472A |
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PAN No.: [Permanent
Account No.] |
AAVVS2157H |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business : |
Promoters of Industrial Finance, Order Suppliers, Importers, Exporters, Merchants, Stockiest, Buyers, Sellers, Agents, Brokers, Commission Agents and Dealers. |
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 : |
USDS 100000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a new company of Reliance Group, a large industrial House in the country. Reliance Group is recognised as fastest growing industrial house and has achieved extra-ordinary performance in last 2 decades. The group's managerial capabilities are undoubted. It never faces any problems due to its' political clout. The company can be considered normal for business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Reliance House Near Mardia Plaza Off: C.G. Road, Ahmedabad : 380006
Gujarat |
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Tel. No.: |
91-22-30386286 |
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Fax No.: |
91-22-30376622 |
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Branches : |
Located at :- · Mumbai, Maharashtra · Bangalore, Karnataka |
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Corporate Office: |
“Brindavan”, 2nd Floor, Shree Ram Mils Premises, Ganpatrao
Kadam Marg, Worli, Mumbai :400013, Maharashtra, India |
DIRECTORS
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Name : |
Mr. Mukesh Dhriubhai Ambani |
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Designation : |
Managing Director |
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Address : |
Sea Wind 39 cuffe Parade Mumbai:400 005 |
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Date of Birth/Age : |
09.04.1957 |
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Date of Appointment : |
14.07.2000 |
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Name : |
Mr. Manoj Hanjvandas Modi |
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Designation : |
Director |
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Address : |
Flat No.7, Best Apartments Wakeshwar Mumbai:40006 |
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Date of Birth/Age : |
03.07.1957 |
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Date of Appointment : |
14.07.2000 |
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Name : |
Mr. Anand JaiKumar Jain |
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Designation : |
Director |
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Address : |
A/3, sector Apartments. 38, Peddar road, Mumbai:400026 |
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Date of Birth/Age : |
14.01.1957 |
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Date of Appointment : |
11.12.2003 |
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Name : |
Mr. Ramchandran Raja |
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Designation : |
Director |
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Address : |
Flat No.1703/1704, Raheja Classique New Link Road, Oshwara Andhem
(west) Mumbai:400053 |
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Date of Birth/Age : |
19.12.1956 |
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Date of Appointment : |
09.02.2002 |
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Name : |
Mr. Mukesh Prasad Modi |
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Designation : |
Director |
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Address : |
B-92, Sector 27, Nonda 201,301,
Uttar Pradesh |
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Date of Birth/Age : |
01.10.1939 |
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Date of Appointment : |
19.01.2005 |
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Name : |
Mr. Yogendra Prasad Trivedi |
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Designation : |
Director |
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Address : |
Mistry Manor’62.A Napean sea road Mumbai:400006 |
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Date of Birth/Age : |
05.01.1929 |
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Date of Appointment : |
19.01.2005 |
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Name : |
Mr. Anil Chrubha Ambhani |
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Designation : |
Director |
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Address : |
Sea Wind 39 cute Parade |
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Date of Birth/Age : |
04.06.1959 |
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Date of Appointment : |
26.06.2005 |
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Name : |
Mr. Gautam Bharta Doshi |
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Designation : |
Director |
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Address : |
Mumbai 400005 |
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Date of Birth/Age : |
23.12.1957 |
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Date of Appointment : |
26.06.2005 |
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Name : |
Mr. Jayaraman Ramchandran |
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Designation : |
Director |
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Address : |
417, Pacutly Quarters, Indian institute of Management Bannurghate
Bangalore:560078 |
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Date of Birth/Age : |
01.07.1957 |
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Date of Appointment : |
26.06.2005 |
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KEY EXECUTIVES
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Name : |
Mr. Tusi Sukhmal Dadani |
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Designation : |
Secretary and Manager |
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Address : |
Row House “60 Sector 17, Opp Vijaya Bank Kopadhana Navi Mumbai 400705 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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Colonial Capital Private Limited |
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56000000 |
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Newton Capital Private Limited |
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56000000 |
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Warburg Capital Private Limited |
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16000000 |
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Equity Link Trading (India) Private Limited |
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56000000 |
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Perrger Trading Private Limited |
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36000000 |
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Reme Trading Private Limited |
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56000000 |
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Greenwech Capital Private Limited |
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9000000 |
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Reliance Neteentre Company Private Limited |
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9000000 |
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Reliance Qualnet Company Private Limited |
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9000000 |
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Reliance Web Spiders Company Private Limited |
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9000000 |
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Reliance Qualnet Company Privat Limited |
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1 |
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Anil D. Ambain |
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1 |
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Tina D. Ambani |
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1 |
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Jaanmol A. Ambani |
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56000000 |
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Jewel Communication Private Limited |
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659999995 |
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Ambani Enterprises Private Limited |
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1 |
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AAA Consultancy Services Company Private Limited |
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1 |
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Greenwich Capital Private Limited |
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42000000 |
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Reliance Industries Limited |
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810000000 |
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Reliance Industries Limited |
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90000000 |
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Reliance Capital Limited |
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321190 |
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Recron Infoinvestments Limited |
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640140 |
Equity Share break up:
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Category |
Percentage |
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Bodies corporate (not mentioned above) |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Promoters of Industrial Finance, Order Suppliers, Importers, Exporters, Merchants, Stockiest, Buyers, Sellers, Agents, Brokers, Commission Agents and Dealers. |
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Products : |
Internet Service Provider |
GENERAL
INFORMATION
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No. of Employees : |
Around 300 |
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Bankers : |
Unknown |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Rajesh Chaturvedi Chartered Accountant |
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Address : |
Chaturvedi and Shah, G12, Tulsiani Chambers,
Nariman Point, Mumbai:400021, Maharashtra, India |
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Associates/Subsidiaries : |
Associates Reliance Group Reliance Industries Limited Reliance Petrochemicals Limited Reliance Infoinvestments Private Limited Reliance Petroinvestments Private Limited And several Reliance Group Companies Subsidiaries Reliance Infocomm Limited (Formerly Reliance
Communications Limited) |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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2500000000 |
Equity Sahres |
Re.1/- each |
Rs.2500.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
2000000000 |
Equity Shares |
Re.1/- each |
Rs.2000.000
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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2000.000 |
2000.000 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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45022.600 |
45022.900 |
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4] (Accumulated Losses) |
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(21030.400) |
0.000 |
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NETWORTH |
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25992.200 |
47022.900 |
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LOAN FUNDS |
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1] Secured Loans |
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16850.300 |
38135.400 |
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2] Unsecured Loans |
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14497.200 |
2850.700 |
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TOTAL BORROWING |
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31347.500 |
40986.100 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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57339.700 |
88009.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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51652.200 |
51811.700 |
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Capital work-in-progress |
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6976.000 |
8638.000 |
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INVESTMENT |
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34092.400 |
29609.400 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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2931.200 |
8268.400 |
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Sundry Debtors |
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1609.600 |
653.000 |
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Cash & Bank Balances |
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7314.700 |
3714.700 |
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Other Current Assets |
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575.500 |
97.100 |
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Loans & Advances |
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12101.400 |
53013.700 |
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Total
Current Assets |
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24532.400 |
65746.900 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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59880.600 |
67777.000 |
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Provisions |
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32.700 |
25.700 |
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Total
Current Liabilities |
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59913.300 |
67802.700 |
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Net Current Assets |
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(35380.900) |
(2055.800) |
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MISCELLANEOUS EXPENSES |
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0.000 |
5.700 |
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TOTAL |
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57339.700 |
8800.900 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2006 |
31.03.2005 |
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Sales Turnover |
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10691.000 |
8135.500 |
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Other Income |
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455.600 |
136.600 |
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Total Income |
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11146.600 |
8272.100 |
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Profit/(Loss) Before Tax |
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(21020.700) |
177.700 |
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Provision for Taxation |
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10.000 |
14.000 |
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Profit/(Loss) After Tax |
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(21030.700) |
163.700 |
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Expenditures : |
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Salaries, Wages, Bonus, etc. |
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119.400 |
133.200 |
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Managerial Remuneration |
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0.600 |
0.000 |
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Payment to Auditors |
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11.800 |
11.800 |
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Interest |
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0.000 |
0.000 |
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Insurance Expenses |
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12.300 |
19.700 |
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Power & Fuel |
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2.300 |
0.000 |
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Depreciation & Amortization |
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3051.600 |
3544.800 |
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Other Expenditure |
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28969.300 |
4384.900 |
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Total Expenditure |
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32167.300 |
8094.400 |
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KEY RATIOS
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PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
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(188.67) |
1.97 |
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Net Profit Margin (PBT/Sales) |
(%) |
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(196.62) |
2.18 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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(129.18) |
0.35 |
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Return on Investment (ROI) (PBT/Networth) |
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(0.80) |
0.00 |
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Debt Equity Ratio (Total Liability/Networth) |
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2.30 |
1.44 |
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Current Ratio (Current Asset/Current Liability) |
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0.40 |
0.96 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was incorporated on 17th July, 1997 at Mumbai in Maharashtra under the name and style of Sukhakarta Fintrade Private Limited having Company Registration Number 109474. The name of the company was changed to Macronet Private Limited with effect from 15.02.1999. Further, the name of the company was changed to Reliance Infocom Private Limited with effect from 3rd November, 2000 and subsequently it became a public limited liability company. The name of the company was further changed to the present with effect from 7th March, 2002.
The company’s registered office was transferred from 84-A, Mittal Court, 222, Nariman Point, Mumbai – 400021, Maharashtra to its present address.
Profile
It also acts as general order suppliers, importers, exporters, merchants, stockists, buyers, sellers, agents, brokers, commission agents and dealers of cotton, jute, tea, coffee, rubber, oil, grains, pulses, seeds, vegetable products, cotton goods, jute goods, textile garments, yarn, synthetic goods, domestic appliances, furnitures, decorative items, gift items, steel utensils, plastic goods, rubber items, pulp, paper, engineering goods, electrical items, electronic items, etc.
It is also incorporated to undertake business in information technology industry in India and Overseas.
In August 2001, company has commenced commercial services of its Internet Data Centre in Mumbai.
In March 2002, company has also partly commenced commercial services of its Internet Data Centre in Bangalore.
Operations
The company has entered into the license agreement with department of telecommunications (DOT) on 9th November, 1998 and obtained category A, All India license to establish, maintain and operate Internet services.
The company has entered into an agreement with Reliance Engineering Associates Private Limited for carrying out construction activities and for laying underground optical fibre cable in various states in India.
The company is planning to commence ISP operations in the cities of Indore, Guwahati, Patna and Bhubaneshwar in the next quarter. While the brand and distribution system have reached the stable situation in Kolkata. Company is planning to introduce various strategies, such as Integrated Services Digital Network, lease line connections, broadband access and various promotional activities to meet the challenges of highly competitive scenario.
Telecommunications Project
The company has undertaken an ambitious project for building world class Telecommunications infrastructure by connecting all major cities through high quality, terabit capacity optic fibre backbone network. This infrastructure project will accelerate India’s economic growth by providing efficient and economic Telecommunication services. The project facilities which are being built, will address the entire Telecom market with a national footprint and will help the company and its subsidiary company Reliance Infocomm Limited to have a presence in all major Telecommunication services whether fixed or mobile or whether voice, data, image or any other value added services.
As on date the company has completed a substantial portion of trenching and duct laying and optical fiber blowing in the National Backbone in major Highways and Main Access rings in 588 cities, required for commencement of services of the company and its subsidiary Reliance Infocomm Limited.
The above have been achieved in a record time by mobilising a peak work force of about 47000 people to put in place this world class infrastructure. The company has deployed sophisticated machinery for this purpose such as Horizontal Directional Drilling Machines, Road Pushers / Moles, Cable Blowing Machines, Cable Splicing and OTDR equipment etc, so as to cause minimum inconvenience to the public during trenching/ducting process.
It is in trade terms with:-
· Diamond Pipes
· Bharat Spuns Pipe & Construction Company
· Erectofab
· JMD Enterprises
· Kalpana Glass Fi
· R.R. Construction
· National R.C.C. Spun Pipe Company
· Shivsakthi Traders
· Sai Construction
· Ganapthi Trading Company
· Tripathi Construction
· Harendra Construction Company Private Limited
· Ashok Parvadan
· Shivam Construction,
· Chandan Kumar
· N.B.S. Engicon Private Limited
During the year under report, the Authorised Capital of the company was raised from Rs. 500 millions to Rs. 2,000 millions.
During the year under report the company had allotted on private placement basis, 1,816,999,800 equity shares at par aggregating to Rs. 1,816,999,800. Further the company offered for subscription on private placement basis, 180,000,000 equity shares of a face value of Rs. 1/- each at a premium of Rs. 249/- per equity share aggregating to Rs. 45,000 millions.
CHANGE OF NAME
During the year under report, the company changed its name from Reliance Infocom Limited to Reliance Communications Infrastructure Limited. A fresh certificate of incorporation consequent to the change of name of the company was received from Registrar of Companies, Maharashtra on 7th March, 2002.
The company’s fixed assets of important value include goodwill, leasehold land, freehold land, building, plant and machinery, electrical installations, office equipments, furniture and fixtures and vehicles.
Press Releases
Reliance Firm has Signed MoU’s with 3 State
The decision to leverage its mammoth telecom infrastructure – which comprises 60000 km of fibre-optic cabling in 16 states, linking 115 cities (more than 40% has already been completed) is part of what Reliance terms its "change India project".
To start with, the e-governance systems will consist of information oriented applications, such as government rulings and orders as well as application forms. Today, even to get access to basic information, people have to trek to the local tehsildar's office. In the next phase, there will be interactive applications, whereby individuals will be able to apply for a driver's license or make revenue payments through the kiosks, which will be operated by a network of franchisees, said Mr. M. Sahu, Chief of Gujarat Informatics, "Reliance has commissioned a market survey to find out which services people most desire to be put online. Based on that, the company will develop the next phase.
A 35000 strong labour force has been deployed on the ground for the cable laying operations. This will provide high speed voice and data services to facilitate business like virtual private networks, data centres, bandwidth leasing and eventually domestic and international long-distance telephony.
State, Reliance may Usher in a New Era
Tired of trekking to the local tehsildar's office to find out the status of licence application? Need to get information on land or the latest mandi prices? Life may soon get easier for villagers across India.
In an innovative public private sector initiative, Reliance Infocom, the telecom and IT arm of Reliance Industries, has partnered with four state governments to set up their e-governance infrastructure. In the lead is Gujarat where work on creating 1500 electronic information kiosks with basic e-governance applications has already begun – all at no cost to the government.
A proposal has been submitted to the Maharashtra Government. Maharashtra Chief Secretary Mr. Arun Bongirwar says that "they are seriously considering the proposal. However, the government should not be compromised in any way, given that a private enterprise will have access to government data."
The kiosks will provide information and applications that are already in public domain. Principal Secretary of Gujarat IT department Mr. J. S. Rana says "Reliance Infocom was in the process of laying a fibre-optic cable network and creating information kiosks for their commercial purposes.
Given that the infrastructure was already developed, they offered to help to develop e-governance applications as well. About 300 kiosks across the state will be rolled out within the next six month. The company is working in a joint venture with Gujarat Informatics Limited, a state government undertaking.
Reliance Infocomm Inducts Independent Directors
Mumbai, January 20, 2005
Shri Y P Trivedi, eminent advocate of the Supreme Court and Shri M P Modi, former Secretary in the Government of India were inducted today as Independent Directors on the Board of Reliance Infocomm Limited (RIC) and Reliance Communications Infrastructure Limited (RCIL). The Board of Directors of Reliance Communications Infrastructure Limited (RCIL) and Reliance Infocomm Limited (RIC) met today in Mumbai.
As approved by the respective Boards of RIC and RCIL at their meetings held on December 22, 2004, the Companies had requested M/s. Reliance Industries Limited ("RIL") to suggest two of its Independent Directors for appointment as Independent Directors on the Board of the Company. Pursuant to the aforesaid authorisation, the companies had extended an invitation to RIL seeking two of the Independent Directors on its Board, for appointment as Independent Directors on the Board of RCIL and RIC.
In this regard, RIL has intimated the decision of its Board of Directors suggesting the names of Shri Y P Trivedi and Shri M P Modi for appointment as Directors on the Board of the RIC and RCIL.
Shri Y P Trivedi and Shri M P Modi, Independent Directors on the Board of RIL, are professionals with longstanding, rich and varied experience and have contributed to the deliberations on the Board of RIL and to its growth. A brief profile of Shri Y P Trivedi and Shri M P Modi is annexed.
The appointment of Shri Y P Trivedi and Shri M P Modi as Independent Directors is a step towards establishing higher levels of Corporate Governance.
Shri Yogendra P. Trivedi
Shri Y. P. Trivedi is an eminent Advocate of the Supreme Court and a tax Consultant. He is a Director of Reliance Industries Limited (RIL) since 16th April, 1992. He has vast experience in finance and taxation. He is a Member of various clubs and associations and holding important positions in various fields: Economic, Political, Professional, Commercial, Education, Medical, Sports and Social. He has received various awards and merits for his contribution in various fields. Besides being a Director of RIL and other leading Companies, he is also a Chairman of the Audit Committee, and a member of Shareholders/Investors Grievance Committee, Corporate Governance and Shareholders interface Committee and the Remuneration Committee of the Directors of RIL
Shri M.P. Modi
Shri M.P. Modi has held high positions under the Government of India as Chairman of Telecom Commission; Secretary, Ministry of Coal and Special Secretary, Insurance. He has considerable management experience, particularly in the fields of energy, insurance, petrochemicals and telecom. Shri M.P. Modi is a Director of the Reliance Industries Limited (RIL) since 28th March, 2001. He is Chairman of the Audit Committee of Mangalore Refinery & Petrochemicals Limited and ICICI Prudential Life Insurance Company Limited and Member of the Audit Committee, Corporate Governance and Shareholders interface Committee.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.41.73 |
|
UK Pound |
1 |
Rs.83.11 |
|
Euro |
1 |
Rs.56.50 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
NO |
|
TOTAL |
|
51 |
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 |
|