MIRA
INFORM REPORT
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Report Date : |
05.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
GATEWAY RAIL FREIGHT PRIVATE LIMITED |
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Formerly Known As : |
RAG FREIGHT SERVICES PRIVATE LIMITED |
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Registered Office : |
17, Ahluwalia Chambers, Ground Floor, L. S. C., Pushp Vihar, New Delhi
– 110062 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
12.07.2005 |
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Com. Reg. No.: |
55-138598 |
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CIN No.: [Company
Identification No.] |
U60231DL2005PLC138598 |
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Legal Form : |
Private Limited Liability Company. |
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Line of Business : |
Transportation
– Road & Rail and Activities, Container Freight Station Services |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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/normal. |
Small |
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Maximum Credit Limit : |
USD 4400000 |
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Status : |
New Project |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Although subject is a new company. It has been promoted by strong
promoters. They have the capability to raise require finance for the project. As
such they have strong capital base. The project is in it’s initial stage of
operation. It’s payment’s are required as slow but correct. The company can be considered normal for business dealings at usual
trade terms and conditions on merits. |
LOCATIONS
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Registered Office : |
17, Ahluwalia Chambers, Ground Floor, L. S. C., Pushp Vihar, New Delhi
– 110062, India |
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Tel. No.: |
91-11-40554400 |
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Fax No.: |
91-11-29962850 |
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E-Mail : |
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Website : |
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Corporate Office : |
R – 125, 1st Floor, Greater Kailash, Part – 1, New Delhi – 110048,
India |
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Tel. No.: |
91-11-5162000 |
DIRECTORS
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Name : |
Mr. Prem Kishandass Gupta |
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Designation : |
Managing Director |
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Address : |
94, Sainik Farm, Khanpur – 110062, New Delhi, India |
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Date of Birth/Age : |
22.02.1958 |
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Date of Appointment : |
02.05.2006 |
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Other Directorship : |
Prism International Private Limited U74899DL1994PTC061703 Perfect Communications Private Limited U74899DL1990PTC039124 Fortune Technology Investments India Private Limited U65993MH2000PTC126495 Star Cineplex Private Limited U45209MH1999PTC122594 Gateway East India Private Limited U1909AP1994PTC017523 Gateway Distriparks [South] Private Limited U35111KA1996PTC020576 Gateway Distriparks Limited L74899DL1994PLC058308 |
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Name : |
Mr. Gopinath Pillai |
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Designation : |
Director |
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Address : |
67, Hua Guan Avenue, Singapore – 589163 |
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Date of Birth/Age : |
18.09.1937 |
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Date of Appointment : |
02.05.2006 |
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Other Directorship : |
Gateway East India Private Limited U1909AP1994PTC017523 Gateway Distriparks [South] Private Limited U35111KA1996PTC020576 Gateway Distriparks Limited L74899DL1994PLC058308 |
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Name : |
Mr. Shabbir Hakimuddin Hassanbhai |
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Designation : |
Director |
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Address : |
36, Keppel Bay Drive, # 05-78, Caribbean at Keppel Bay, Singapore –
098653 |
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Date of Birth/Age : |
10.11.1946 |
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Date of Appointment : |
21.07.2006 |
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Name : |
Mr. Karan Singh Thakral, Foreigner |
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Designation : |
20 Upper
Circular Road, 03-06 The Riverwalk, Singapore 058416 |
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Address : |
Director |
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Date of Birth/Age : |
07/04/1955 |
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Date of Appointment : |
21/07/2006 |
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Name : |
Mr. Nandan Chopra |
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Designation : |
S-405A, First
Floor, Greater Kailash, Part – I, New Delhi 110 048 |
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Address : |
Company
Secretary |
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Date of Birth/Age : |
27/08/1963 |
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Date of Appointment : |
31/01/2007 |
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Name : |
Mr. Sat Pal Khattar, Foreigner |
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Designation : |
8-D, Tanglin
Hill, Singapore 248035 |
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Address : |
Director |
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Date of Birth/Age : |
22/11/1942 |
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Date of Appointment : |
21/07/2006 |
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Name : |
Mr. Saroosh Dinshaw |
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Designation : |
Adenwala Baug
Tardeo Nana Chowk, Mumbai 400 007, Maharashtra |
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Address : |
Director |
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Date of Birth/Age : |
11/08/1970 |
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Date of Appointment : |
21/07/2006 |
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Date of Ceasing : |
31/10/2006 |
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Name : |
Mr. Ankit Gupta |
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Designation : |
Director |
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Address : |
B-3/70, Ashok Vihar, Phase – II, Delhi – 110052, India |
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Date of Birth/Age : |
29.08.1985 |
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Date of Appointment : |
12.07.2005 |
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Name : |
Mr. Deepak Goel |
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Designation : |
Director |
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Address : |
A-2/25, Paschim Vihar, New Delhi – 110063, India |
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Date of Birth/Age : |
15.10.1967 |
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Date of Appointment : |
12.07.2005 |
KEY EXECUTIVES
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Name : |
Mr. Christopher S. Verma |
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Designation : |
Chief Executive Officer |
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Name : |
Mr. Prem K. Gupta |
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Designation : |
Deputy Chairman of the Board, Managing Director |
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Name : |
Mr. R. Kumar |
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Designation : |
Chief Financial Officer, Compliance Officer, Secretary |
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Name : |
Mr. Kartik Aiyer |
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Designation : |
General Manager - Finance & Accounts |
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Name : |
Mr. Biswajit Chakravarty |
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Designation : |
Sr. General Manager- Operations |
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Name : |
Mr. Jacob Thomas |
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Designation : |
General Manager- Operations |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
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No. of Shares |
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M/s Gatweway Distriparks Limited |
100,999,899 |
92.660 |
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Mr Rajnish Kumar |
2,500,000 |
2.294 |
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Mr V Shrinivas Reddy |
500,000 |
0.459 |
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Mr Sachin Bhanushali |
2,500,000 |
2.294 |
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Mr Arun Agarwal |
1 |
0.000 |
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Mr Prem Krishan Gupta |
100 |
0.000 |
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Mr Amit Kumar |
2,500,000 |
2.294 |
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Total |
109,000,000 |
100.000 |
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Category |
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Percentage of
Holding |
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Directors or relatives of directors |
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100.00 % |
BUSINESS DETAILS
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Line of Business : |
Transportation
– Road & Rail and Activities, Container Freight Station Services |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
GENERAL
INFORMATION
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No. of Employees : |
20 |
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Bankers : |
·
ICICI Bank Limited, ICICI Tower, NBCC Place, Bhisma Pitamah Marg,
Pragati Vihar, Lodhi Road, New Delhi 110 003. The subject is enjoying the following facilities from ICICI
Bank Limited
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Facility : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M/s Dinesh
Rajinder & Associates, Chartered Accountants (Mr Chetan
Pagariya, Partner, Membership No. 125153) |
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Address : |
E-6, Rani Jhansi
Road, 2nd Floor, Jhandewalan Extension, New Delhi 110 055 |
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Tel No.: |
91-11-43570200 |
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Fax No.: |
91-11-43570268 |
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Parent Company : |
Gatweway Distriparks Limited CFS Office, Sector 6, Dronagiri, Taluka Uran, District Raigad, Navi
Mumbai, Maharashtra |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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150000000 |
Equity Shares |
Rs. 10/- each |
Rs. 1500.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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109000000 |
Equity Shares |
Rs. 10/- each |
Rs. 1090.000
Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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01-04-2006 To
31-03-2007 |
12.07.2005 to
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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1090.000 |
0.100 |
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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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0.005 |
0.005 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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1090.005 |
0.105 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
0.000 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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1090.005 |
0.105 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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870.963 |
0.000 |
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Capital work-in-progress |
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686.030 |
0.000 |
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Incidental Exp Pending Capitalisation |
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30.035 |
0.000 |
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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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0.000 |
0.000 |
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Sundry Debtors |
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0.000 |
0.000 |
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Cash & Bank Balances |
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25.631 |
0.101 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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8.610 |
0.000 |
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Total
Current Assets |
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34.241 |
0.101 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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529.538 |
0.004 |
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Provisions |
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1.734 |
0.003 |
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Total
Current Liabilities |
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531.272 |
0.007 |
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Net Current Assets |
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[497.031] |
0.094 |
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MISCELLANEOUS EXPENSES |
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0.008 |
0.011 |
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TOTAL |
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1090.005 |
0.105 |
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Note: The subject has not
started their commercial business activities during the financial year 2005-06
& 2006-07 the P&L is not applicable. There is no foreign exchange
earnings & outgo during the year.
The details of ‘Statement of Incidental Expenditure’ during the
construction pending allocation are given below:
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
01-04-2006 To
31-03-2007 |
12.07.2005 to
31.03.2006 |
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Other Income |
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NA |
0.016 |
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Total Income |
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NA |
0.016 |
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Profit/(Loss) Before Tax |
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NA |
0.005 |
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Provision for Taxation |
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NA |
-- |
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Profit/(Loss) After Tax |
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NA |
0.005 |
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Expenditures : |
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Personnel Expenses |
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9.879 |
0.000 |
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Payment to Auditors |
|
140 |
0.004 |
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Power & Fuel |
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310 |
0.000 |
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Depreciation & Amortisation |
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4.435 |
0.000 |
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Other Expenditure |
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15.270 |
0.007 |
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Total Expenditure |
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479.584 |
0.011 |
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KEY RATIOS
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PARTICULARS |
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01-04-2006 To
31-03-2007 |
12.07.2005 to
31.03.2006 |
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PAT / Total Income |
(%) |
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-- |
31.25 |
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Net Profit Margin (PBT/Sales) |
(%) |
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-- |
31.25 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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-- |
0.05 |
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Return on Investment (ROI) (PBT/Networth) |
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-- |
0.05 |
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Debt Equity Ratio (Total Liability/Networth) |
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|
0.49 |
0.07 |
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Current Ratio (Current Asset/Current Liability) |
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0.06 |
14.43 |
LOCAL AGENCY
FURTHER INFORMATION
RAIL-LINKED LOGISTICS PARK FOR GURGAON (Gateway Rail Freight
Private Limited and the Container Corporation of India will hold 51:49 share in
the joint venture company)
(India Business Insight Via Thomson Dialog NewsEdge) Gateway
Rail Freight Private Limited (GRFPL), a subsidiary of Gateway Distriparks (GD),
has signed an agreement with Container Corporation of India (Concor) for
setting up a joint venture company. The enterprise will construct and operate
the rail linked double stack container terminal at Garhi Harsaru, near Gurgaon,
in Haryana. GRFPL and Concor will hold 51:49 share in the new entity.
Incorporated on July 12, 2005 the subject had been set up
with the object of providing Inter – Modal Logistics Solutions through setting
up of Inland Container Depots & Domestic Inter-Modal Terminals at various
places in India and owning & operating Container trains as a Category I
operator on Indian Railways. During the
financial year 2006-07 the subject had been acquiring land at Faridabad &
Ludhiana & other plant & machineries for the project. However, no commercial operations had been
started.
·
The subject had also entered into a Joint Venture Agreement with the
Containers Corporation of India (CONCOR) to construct and operate a Rail Linked
Double Stack Container Terminal at Garhi, Harsaru near Gurgaon, Harya
connecting NCR to the Western Ports.
·
The subject had also placed order for 2 rakes each consisting of 45 BLC
wagons for rail transportation of ISO containers.
·
The subject company had also entered into an arrangement with Gateway
Distriparks Limited for running and management of operations at ICD-Garhi
Harsaru w.e.f. April 1, 2007.
Press Clippings
Source: The Hindu
Business Line dated March 27, 2007
Concor, Gateway
Rail form venture for container terminal
Bureau
Move aimed at
consolidating cargo volumes of north India
Project details
The terminal will be built with an investment of Rs 700 Millions, with
an equity element of Rs 210 Millions. Gateway Rail and Concor will have
shareholding in the ratio of 51:49 respectively in this venture. The depot is expected to be in place in one
year.
New Delhi March 26 Container Corporation of India (Concor) and Gateway
Rail Freight Private Limited, a subsidiary of Gateway Distriparks, have entered
into an agreement to set up a joint venture company to construct and operate a
rail-linked double-stack container terminal at Garhi Harsaru near Gurgaon in
Haryana connecting NCR to the western ports.
Gateway Rail acquired a rail container operating licence last year.
"The terminal would be built with an investment of Rs 700 Millions,
with an equity element of Rs 210 Millions," said Mr R.K. Mehrotra,
Managing Director, Concor. Gateway Rail and Concor will have shareholding in
the ratio of 51:49 respectively in this venture. The depot is expected to be in
place in one year, he said in a press conference here today.
The terminal will be spread over an area of about 100 acres and will
have a rail handling and transshipment terminal, an ICD, multiple container
freight station, warehouse complex and a domestic cargo hub. It will also have
a large warehousing complex for both bonded and transit cargo with separate
facilities for cold storage, reefer containers and for domestic cargo. The move
is aimed at consolidating cargo volumes of north India for double-stack
container train operation on the diesel route from NCR to JN Port, Mundra and
Pipavav using the Delhi-Rewari-Ringus-Phulera route. This terminal is likely to
be connected to the proposed Western Dedicated Rail Freight Corridor, and have
road links to the proposed Kundali - Manesar - Palwal (KMP) Expressway.
It will also be developed as a hub for rail transport of cars and
two-wheelers between north India and western, central, eastern and southern
Indian locations. "With Maruti's plans to export about three lakh cars
every year, we are eyeing that traffic and we are in talks with various
automobile firms including Maruti," Mr Mehrotra said.
Concor, which had entered into an agreement with NYK Liner for offering
automobile services with specially designed wagons, stated that the joint
venture company would supplement the agreement with NYK. "Our MoU with NYK
allows us to get additional strategic partners as well," he said.
On whether Concor is talking to Pipavav Rail Corporation (another
company with rail container operations licence), which has specially designed
containers to be able to move more cars in a rake, Mr Mehrotra said, "We
are open to talks with everybody including Pipavav Rail."
The terminal will cater to the industrial areas of Delhi, Bijwasan,
Gurgaon, Manesar, Dharuhera, Bawal, Hissar, Sonepat, Panipat in Haryana and
Bhiwadi, Neemrana and Behror in Rajasthan. The terminal will also facilitate
the export-import traffic from the proposed Haryana SEZ.
Gateway Rail has already placed order for two rakes (each rake
consisting of 45 wagons), one of which is expected to be delivered within two
weeks, Mr Pillai said.
This agreement replaces the existing agreement between Concor and
Gateway Distriparks on train operations from ICD Garhi Harsaru. Gateway
Distriparks has an operational rail-linked ICD at this location. Currently,
Concor provides rail connectivity to this ICD. The operation of this ICD will
be taken over by the joint venture company. Rail operations will now be done
jointly by Gateway Rail and Concor.
GDL is expected to benefit from improving infrastructure and policy
initiatives like entry of private players in the rail freight business. It has
also moved up the value chain through acquisitions in the cold storage business
and become an integrated logistics solution provider.
Company Background
Gateway Distriparks (GDL) is a one of the major private players in
handling, transport and storage of containers, warehousing of cargo and various
value added services provided in relation to import and export of cargo in containers.
GDL is an Indo-Singapore joint venture and has been promoted by Prism
International Pte Limited Windmill International Pte Limited and Thakral
Corporation.
The company has modern Container Freight Station's (CFS's) at Dronagiri
(about 9 kms from the Jawaharlal Nehru Port ), Navi Mumbai and New Manali,
Chennai besides an Inland Container Depot (ICD) at Garhi Harsaru (near Delhi ),
Haryana and a newly commissioned CFS at Vishakapatam (a joint venture with Suri
Group).
In March 2005 the company raised Rs 792 Millions by way of initial
public offer (IPO). GDL offered 11 Millions shares of Rs 10 each at a premium
of Rs 62. In December 2005, GDL raised Rs 3846 Millions by way Global
Depository Receipts (GDR) at a price of Rs 230.87 per share.
The company has recently proposed a bonus issue in ratio of 1:4.
Investment
Rationale
Container Freight industry to grow at a rapid pace
India container freight business is expected to grow by 4 times in the
next 6-8 years to 20,000,000 Twenty Foot Equivalent Units (TEU). To capitalize
on the growth opportunity, GDL has enhanced its presence by establishing
Container Freight Stations (CFS) and Inland Container Depots (ICD) at strategic
locations like Navi Mumbai, Vizag, Chennai, Gurgaon, Faridabad , Haryana,
Ludhiana and Kochi . These CFSs and ICDs provide GDL with access to 90% of
Container Freight Corridors of India and would enable it to ramp up its
revenues going ahead.
Entry into cold
storage to derisk business
GDL has acquired 50.1% stake in Snowman Frozen Foods Limited (SFFL) for
Rs 480 Millions. The acquisition would enable GDL to forward integrate into the
cold storage business and become an integrated logistics player. The
acquisition would help GDL to diversify and de-risk its business by providing
an additional revenue stream. GDL can also look at exploring business
opportunities with other stakeholders like Mitsubishi Logistics Corporation and
Nichirei Logistics Group Inc. who hold the balance stake in SFFL.
JV with Concor to transition GDL into an end-to-end rail transportation
service provider
The rail freight business was recently opened to the private sector. GDL
formed a subsidiary Gateway Rail Freight Private Limited (GRFPL) and acquired
an all India operating license from the Indian Railway for an upfront payment
of Rs 500 Millions. It formed a joint venture with Container Corporation
(Concor) to construct and operate a rail linked ICD at Garhi, Harsaru, Gurgaon,
which will connect the North Central Region (NCR) with the western ports. GRFPL
will hold 51% in the joint venture while remaining 49% will be held by Concor.
GDL and Concor will share the rail operations for movement of rakes from the
Garhi ICD to ports equally. The joint venture would enable GDL to run rakes
from the ICD, which as not allowed under the earlier agreement with Concor. The
integrated services from the ICD would enable a strong growth in volumes and
help GDL to become an end-to-end container rail transportation service
provider. Additionally, GDL will also earn lease rentals from the land leased
out to the joint venture.
Better
infrastructure and policy initiatives
The Government's impetus on promoting FDI for construction of small
ports at various locations will provide an impetus to Export-Import trade volumes
and thus provide a boost to the container freight segment. India's two major
ports JNPT an Chennai, which control 80% of the container freight business are
constructing new terminals to decongest the ports. The improved infrastructure
and decongestion of the ports would enable GDL to capitalize on the
opportunity.
Key Concerns
Low entry barrier
The container freight business is characterized by low barrier to entry.
Any player with significant investment capacity can enter the business.
Idle cash balance
The company has Rs 1570 Millions of fixed deposits. GDL earns an
interest of 8.5% on the same. The company has kept this cash balance to finance
future acquisitions. GDL's Return on equity will be impacted till the cash
balance is not utilized.
Financials:
GDL is expected to benefit from improving infrastructure and policy
initiatives like entry of private players in the rail freight business. It has
also moved up the value chain through acquisitions in the cold storage business
and become an integrated logistics solution provider. We expect GDL's
consolidated sales to grow from Rs 1609.900 Millions to Rs 2400 Millions and
net profit to post a 28% growth to Rs 990 Millions in Fy08E. For FY09E, we
expect the company to report sales of Rs 3000 Millions and a net profit of Rs
1240 Millions.
Valuations
GDL with pan-India presence and good connectivity with the major ports
is well poised to take advantage of the strong growth in the container freight
industry. It would be able to ramp up its volume by entering into newer areas
like cold storage and rail transportation services. In addition, the company is
actively scouting companies for acquisition, which would trigger further upside
in the stock. At the current price of Rs 182 the stock trades at a P/E of 16.3x
FY09E EPS of 11.13 (on post bonus dilued equity of Rs 1150 Millions), which is
at 22% discount to the average industry P/E of 20. Given the huge business
potential and de-risked business model we rate the stock an OUTPERFORMER with a
price target of Rs 220, an upside potential of 20% in the next 6 months.
Technical Outlook
The stock has formed a long-term support at Rs 173,levels. Stock is
currently trading above its 200 days moving average . On the weekly charts
stock has formed the double bottom formation pattern. The MACD indicators are
in the oversold zone and have a bullish crossover. On the weekly charts average
volume have increase 6 times compared to the pervious week, which indicate the
strong buying was witness at around 179 levels. The RSI indicators have also
gained strength and remain in neutral territory. Short Term Averages are on the
verge of a positive crossover. Once the stock move above Rs 187 levels, we can
see it could further move up to Rs198 levels, closing above this level can
further move up the stock to Rs 213 levels very soon. Medium term and long term
resistances remain at Rs 193 and Rs 213 levels.
FIXED
ASSETS
- Freehold Land
- Yard
Equipments
- Vehicles -
Tractor Trailers
- Office
Equipments
- Computers
- Furniture
& Fixtures
- Motor Car
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.39.29 |
|
UK Pound |
1 |
Rs.81.91 |
|
Euro |
1 |
Rs.56.96 |
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 |
|