MIRA
INFORM REPORT
|
Report Date : |
04.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
POWERICA LIMITED |
|
|
|
|
Formerly Known As : |
CONSOLIDATED POWER SYSTEMS LIMITED |
|
|
|
|
Registered Office : |
115 Mittal Court, B-Wing, Nariman Point, Mumbai – 400 021, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
04.05.1984 |
|
|
|
|
Com. Reg. No.: |
11-32825 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U31100MH1984PLC032825 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMP15268B |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACP3812E |
|
|
|
|
Legal Form : |
A Closely Held
Public Limited Liability company |
|
|
|
|
Line of Business : |
Manufacturing and
marketing of Diesel Generator Sets, Control Panels, Engines and Alternators. |
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 7800000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a
well-established and reputed company having fine track. Available information
indicates high financial responsibility of the company. Financial position of
the company is good. Business is active. Payments are usually correct and as
per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. The company can
be regarded as a promising business partner in a long-run. |
LOCATIONS
|
Registered Office : |
115 Mittal Court, B-Wing, Nariman Point, Mumbai – 400 021, |
|
Tel. No.: |
91--22- 66562525
/ 66562510 / 2282 5949 |
|
Fax No.: |
91-22-204 3782 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
Located at :
|
|
|
|
|
Branches : |
Located at
|
DIRECTORS
|
Name : |
Mr. Naresh Oberoi |
|
Designation : |
Chairman &
Managing Director |
|
Address : |
181-B, Jolly Maker Apartment, Cuffe Parade, Colaba, Mumbai – 400005, |
|
Date of Birth/Age : |
08.03.1942 |
|
Date of Appointment : |
04.05.1984 |
|
|
|
|
Name : |
Mr. Kharati Ram Puri |
|
Designation : |
Whole Time Director |
|
Address : |
50 Sunita, Cuffe Parade, Colaba, Mumbai – 400005, |
|
Date of Birth/Age : |
10.04.1926 |
|
Date of Appointment : |
01.01.2007 |
|
|
|
|
Name : |
Mr. Sam Amrolia |
|
Designation : |
Director |
|
Address : |
Dadar Paschim Apartment, |
|
Date of Birth/Age : |
28.10.1938 |
|
Date of Appointment : |
01.04.2005 |
|
|
|
|
Name : |
Mr. Ramesh
Chander Puri |
|
Designation : |
Director |
|
Address : |
2201, |
|
Date of Birth/Age : |
06.11.1941 |
|
Date of Appointment : |
01.05.2005 |
|
|
|
|
Name : |
Mr. Bhola Tandon |
|
Designation : |
Director |
|
Address : |
5, Cunningham Cresent |
|
Date of Birth/Age : |
21.07.1952 |
|
Date of Appointment : |
01.04.2005 |
|
|
|
|
Name : |
Mr. Sunil Kumar
Khurana |
|
Designation : |
Director |
|
Address : |
House No. 305, Sector – 15, |
|
Date of Birth/Age : |
02.02.1947 |
|
Date of Appointment : |
01.09.2004 |
|
|
|
|
Name : |
Mr. Bharat Naresh
Oberoi |
|
Designation : |
Director |
|
Address : |
Maker Tower “B”, 3rd Floor, Flat No. 31, Cuffe Parade, Colaba,
Mumbai – 400005, Maharashtra, India |
|
Date of Birth/Age : |
22.02.1971 |
|
Date of Appointment : |
01.11.2003 |
|
|
|
|
Name : |
Ms. Kety Mistry
Pilo |
|
Designation : |
Director |
|
Address : |
Kalpak Hormus, Flat No. 501, |
|
Date of Birth/Age : |
20.03.1956 |
|
Date of Appointment : |
01.05.1998 |
|
|
|
|
Name : |
Mr. Rajat Oberoi |
|
Designation : |
Director |
|
Address : |
181-B, Jolly Maker Apartment, Cuffe Parade, Colaba, Mumbai – 400005, |
|
Date of Birth/Age : |
10.10.1972 |
|
Date of Appointment : |
01.11.2006 |
|
Previous Employment : |
Powerica Sales and Services Private Limited U51900MH1980PTC022350 Quadrant Consultancy Services Private Limited U74140MH1981PTC024853 Man Diesel Power India Private Limited U31101MH2006PTC166052 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Naresh Chander Oberoi |
|
1811600 |
|
Kharati Ram Puri |
|
533680 |
|
Rajat Naresh Oberoi |
|
270004 |
|
Renu Sachin Mehra |
|
102500 |
|
Nedungadi B. T. |
|
18431 |
|
Naresh Oberoi – HUF |
|
52500 |
|
Bharat Naresh Oberoi |
|
290416 |
|
Sunil Kumar Khurana |
|
240 |
|
Total |
|
3079371 |
|
|
|
|
|
Equity Share
Breakup |
|
|
|
Category |
|
Percentage of
Holding |
|
Directors or relatives of directors |
|
97.69 |
|
Other top fifty shareholders |
|
2.31 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and
marketing of Diesel Generator Sets, Control Panels, Engines and Alternators. |
||||
|
|
|
||||
|
Products : |
|
GENERAL INFORMATION
|
Customers : |
|
|
|
|
|
Bankers : |
v
Banque
Nationale De Paris, v
Hongkong
& Shanghai Banking Corporation, v
State
Bank of |
|
|
|
|
Facilities : |
-- |
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
Kapoor &
Parekh Associates Chartered
Accountants |
|
Address: |
|
|
Tel. No.: |
91-22-206 0787 /
206 3307 |
|
Fax No.: |
91-22-206 2828 |
|
E-Mail : |
|
|
|
|
|
Associates/Subsidiaries : |
|
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5,000,000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3079371 |
Equity Shares |
Rs.10/- each |
Rs. 30.794
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
30.794 |
22.370 |
22.370 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves &
Surplus |
1170.149 |
774.241 |
588.177 |
|
|
4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
1200.943 |
796.611 |
610.547 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
91.546 |
0.273 |
|
|
2] Unsecured
Loans |
0.000 |
1.750 |
1.750 |
|
TOTAL BORROWING
|
0.000 |
93.296 |
2.023 |
|
|
DEFERRED TAX
LIABILITIES |
1.999 |
2.259 |
3.333 |
|
|
|
|
|
|
|
TOTAL
|
1202.942 |
892.166 |
615.903 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
308.219 |
203.998 |
148.407 |
|
Capital work-in-progress
|
42.186 |
56.365 |
35.097 |
|
|
|
|
|
|
|
INVESTMENT
|
270.965 |
258.030 |
97.198 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
434.704
|
364.395
|
334.175 |
|
|
Sundry Debtors
|
666.977
|
530.529
|
410.381 |
|
|
Cash & Bank Balances
|
239.594
|
181.328
|
154.406 |
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances
|
434.703
|
327.222
|
250.928 |
Total Current Assets
|
1775.978
|
1403.474
|
1149.890 |
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
980.398
|
872.048
|
682.542 |
|
|
Provisions
|
214.008
|
157.653
|
132.147 |
Total Current Liabilities
|
1194.406
|
1029.701
|
814.689 |
|
Net Current Assets
|
581.572
|
373.773
|
335.201 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
1202.942 |
892.166 |
615.903 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
Sales Turnover |
5116.091 |
3385.663 |
2731.483 |
|
|
Other Income |
304.527 |
21.483 |
23.470 |
|
|
Total Income |
5420.618 |
3407.146 |
2754.953 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
542.012 |
278.465 |
254.502 |
|
|
Provision for Taxation |
115.436 |
79.126 |
65.375 |
|
|
Profit/(Loss) After Tax |
426.576 |
199.339 |
189.127 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
NA |
943.206 |
571.547 |
|
|
Commission Earnings |
NA |
19.710 |
19.722 |
|
|
Other Earnings |
NA |
2.633 |
0.421 |
|
Total Earnings |
NA |
965.549 |
591.690 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
NA |
26.858 |
28.503 |
|
|
Traded Goods |
NA |
65.083 |
65.551 |
|
Total Imports |
NA |
91.941 |
94.054 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
0.000 |
0.000 |
2054.415 |
|
|
Manufacturing Expenses |
0.000 |
0.000 |
67.652 |
|
|
Personal Expenses |
0.000 |
0.000 |
133.747 |
|
|
Administrative and Other Expenses |
0.000 |
0.000 |
221.735 |
|
|
Financial Charges |
0.000 |
0.000 |
6.406 |
|
|
Raw Material Consumed |
3276.075 |
2454.604 |
0.000 |
|
|
Purchases made for re-sale |
186.701 |
169.657 |
0.000 |
|
|
Consumption of stores and spares parts |
40.783 |
18.388 |
0.000 |
|
|
Increase/(Decrease) in Finished Goods |
14.713 |
[10.506] |
0.000 |
|
|
Salaries, Wages, Bonus, etc. |
120.736 |
86.400 |
0.000 |
|
|
Managerial Remuneration |
58.030 |
30.280 |
0.000 |
|
|
Payment to Auditors |
0.878 |
0.760 |
0.000 |
|
|
Interest |
9.762 |
8.373 |
0.000 |
|
|
Insurance Expenses |
8.462 |
3.682 |
0.000 |
|
|
Power & Fuel |
1.994 |
2.538 |
0.000 |
|
|
Depreciation & Amortization |
35.784 |
24.601 |
16.496 |
|
|
Other Expenditure |
1124.691 |
608.746 |
0.000 |
|
Total Expenditure |
4878.606 |
3397.523 |
2500.451 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
7.87
|
5.85 |
6.86 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.59
|
8.22 |
9.32 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
26.01
|
17.32 |
19.60 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.45
|
0.35 |
0.42 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.99
|
1.41 |
1.34 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.49
|
1.36 |
1.41 |
LOCAL AGENCY FURTHER INFORMATION
Fixed
assets
v
Land
v
v
v
v
Plant
& Machinery
v
Plant
& Machinery (EOU)
v
Office Equipments
v
Furniture
& Fixtures
v
Computer
and Vehicles
Bankers Charges Report as per Registry
|
Name of the
company |
POWERICA LIMITED |
|
Presented By |
JOINTLY BY
COMPANY AND CHARGEHOLDER |
|
1) Date and description
of instrument creating the change |
Agreement for
Hypothecation of goods dated 16.06.1995 Agreement for
Hypothecation of Book Debts dated 16.06.1995 Both the
aforesaid agreement shall constitute as a single charge. |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 80.000
Millions within the aforesaid overall limit the company can avail of sub
limit of Rs. 15.000 Millions Cash Credit facility Rs. 75.000 Millions Suppliers
Bills Rs. 37.500 Millions Guarantee RS. 15.000 Millions Letter of Credit and
Rs. 10.000 Millions for Packing Credit Export Bills facilities. |
|
3) Short
particular of the property charged. If the property acquired is subject to
charge, date of the acquired of the property should be given |
Hypothecation of
all the movable assets of the company such as raw materials, stock in
process, finished goods, goods in transit, goods lying at various factories,
godowns, warehouse, retail outlets and other movable assets like movable
machineries , implements, tools, furniture, fixture and movable vehicles
wherever situated both present and future brought in or course of transit to
company premises / factory or where else. Hypothecation of
all the book debts, outstanding, money receivables, claims and bills which
are now due and owing to the company in the course of its business. |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
The company shall
pay interest for the aforesaid credit facilities at rates applicable from
time to time as may be informed by the Bank. The Company shall
at all times during the continuance of this security keep the maintain such
margin of security in favour of the Bank as may from time to time be notified
by the Bank. Right of entry,
inspection, value, insure, take charge of and or to seize, recover, receive,
appoint receive of and or take possession of and sell dispose of by public auction or private contract on
all or any part of the hypothecated
assets reserved in favour of the Bank on the happening or any of the events
specified in the hypothecation
agreement. |
|
5) Name and
Address and description of the person entitled to the charge. |
BNP Paribas 62, |
|
6) Date and brief description of instrument
modifying the charge |
Supplemental
Hypothecation Agreement dated December, 2005 for enhancing the existing
credit facilities sanctioned by the Bank to the company by further Rs. 65.500
Millions of which Rs. 5.500 Millions being the Risk value of Foreign Exchange
Transactions – Now the total Facilities is Rs. 265.500 Millions |
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
By the aforesaid
supplemental Hypothecation Agreement the Bank at the request of the company
has enhanced the existing credit limit to Rs. 265.500 Millions by way of
Fourth Modification. Save and except
the above the terms and conditions stipulated in the Original
Hypothecation Agreement dated
16.06.1995 as modified by the first modification charge dated 12.08.1996 for
Rs. 150.000 Millions second modification charge dated 20.01.1998 for Rs.
200.000 Millions and third modification charge for revised limits dated
09.10.1999 for Rs. 200.000 millions shall remain the same. |
|
Corporate
identity number of the company |
U31100MH1984PLC032825 |
|
Name of the
company |
POWERICA LIMITED |
|
Address of the
registered office or of the principal place of business in |
115 Mittal Court, B-Wing, Nariman Point, Mumbai – 400 021, |
|
This form is for |
Modification of
charge |
|
Type of charge |
Hypothecation |
|
Particular of
charge holder |
BNP Paribas 62, |
|
Amount secured by
the charge |
Rs. 80.000
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
The company shall
pay interest for the aforesaid credit facilities at rates applicable from time
to time as may be informed by the bank. The company shall at all times during
the continuance of this security keep
and maintain such margin of security in favour of the Bank as may from time
to time be notified by the bank. |
|
Description of
the property charged indicating whether it is a charged on |
Plant and
Machinery Stock in trade Book debts Furniture and
Fixture Vehicles |
|
Particulars of
the property charged |
all the movable
assets of the company such as raw materials, stock in process, finished
goods, goods in transit, goods lying at various factories, godowns,
warehouse, retail outlets and other movable assets like movable machineries ,
implements, tools, furniture, fixture and movable vehicles wherever situated
both present and future and all the book debts, outstanding bills, monies,
receivables, claims and bills etc. |
|
Charge
identification number of the charge to be modified |
90235689 |
|
Brief description
of the instrument modifying the charge under section 135 |
Supplemental Hypothecation
Agreement |
|
Date of
instrument modifying the charge |
21.07.2006 |
|
Particulars of
the present modification |
By present
modification, the charge amount enhanced to Rs. 574.000 Millions. The charge is
on pari passu basis with Citi Bank and Canara Bank. |
As per website
Subject is in the business of assembly,
sales and service of diesel /f.o/gas power plants for all sectors of economy
for the last 26 years. They execute 600 to 700 MW (Cumulative) captive/ stand
by/ diesel power station every year.
They are an ISO 9001-2000 company and
enjoy status of two star export house as awarded by Govt. of India. They are
25th in
They are also OEM for major engine
manufacturers like Cummins India Limited and MAN B&W
Their range is from 15 KVA to 5000 KVA
with installation base covering railways, electricity boards, telecommunication
and gas exploration. It covers industries like IT, textile, chemicals,
construction, etc.
Powerica
works on principals of “A PROMISE FOR POWER” and make sure to fulfill
the commitment.
|
Sales
Office |
14 |
|
Factories |
08 |
|
Employees |
1200 |
|
Customer
Base |
>
10,000 |
Business
Scale: 2005/06
› Cummins Diesel Gen sets: 600 Mw/per annum
› 3500 nos. per annum
› Manufacturing plants: 08
› Offices in
› Total Employees: 1200
› Customer Base: >10,000
Capabilities
Strength
& Core Competence:
EPC/Turnkey
Supply/O&M
Continuously
executing 600 MW (cumulative) captive/stand-by Diesel Power Stations per year.
Manufacturing:
Factories
at New Mumbai, Daman (Unit I & II), Silvassa and
Operation
& Maintenance:
They
are presently Operating & Maintaining 70% of the 250 MW, Furnace oil based captive
power plants sold achieving 8000 Hrs. annual running plus in 4th year.
Spares:
It is
manufacturing setup for under taking export and trade in spares.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.40.56 |
|
|
1 |
Rs.80.81 |
|
Euro |
1 |
Rs.54.74 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--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 |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
52 |
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 |
|