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MIRA
INFORM REPORT
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Report Date : |
12.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
ESSAR STEEL (HAZIRA) LIMITED |
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Formerly Known As : |
ESSAR STEEL (ORISSA) LIMITED |
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Registered Office : |
Post Hazira, District Surat – 394 270, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
17.06.2005 |
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Com. Reg. No.: |
04-46273 |
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CIN No.: [Company
Identification No.] |
U27100GJ2005FLC046273 |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturer of Steel, Finance, Engineering Projects, Oil, Shipping
and Others. |
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. |
Small |
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Maximum Credit Limit : |
USD 76000000 |
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Status : |
New Project |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Essar Group. Medium sized industrial house of Mr.
Ravikant Ruia and Mr. Shasikant Ruia having business interest in steel,
finance, engineering projects, oil, shipping and others. Their trade relations are fair. Payments are slow to very slow by the
company and group. However, it is a progressive group and subject can be
considered for normal business dealings at usual trade terms and conditions
with some caution. |
INFORMATION
DECLINED BY
|
Name : |
Mr. Jayesh Kumar Naik |
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Designation : |
Accounts Manager |
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Date : |
11.12.2008 |
LOCATIONS
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Registered Office : |
Post Hazira, District Surat – 394270, Gujarat, India |
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Tel No.: |
91-261-6682400 |
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Fax No.: |
91-261-6682796 |
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E-Mail : |
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Website : |
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Factory : |
27th K M, Surat Hazira Road, Tal. Choryasi, Hazira, Surat –
394270, Gujarat, India |
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Tel. No.: |
91-261-2872400 |
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Corporate Office: |
Essar House, P O Box 7945, Mahalaxmi, Mumbai – 400034, India |
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Tel No.: |
91-22-66601100/ 40011100 |
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Fax No.: |
91-22-66669509/ 24954789 |
DIRECTORS
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Name : |
Mr. Pankaj Kulkarni |
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Designation : |
Director |
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Address : |
C/12, Jumbo Darshan, Koldongri Road, 2 Andheri (East), Mumbai –
400069, Maharashtra, India |
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Date of Birth/Age : |
07.12.1957 |
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Date of Appointment : |
01.02.2006 |
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Name : |
Mr. Jatinder Dinanath Mehra |
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Designation : |
Director |
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Address : |
C1/36, Safdarjung Dev Area, New Delhi – 110024, India |
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Date of Birth/Age : |
03.03.1939 |
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Date of Appointment : |
17.06.2005 |
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Name : |
Mr. Venkat Govind Raghavan |
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Designation : |
Director |
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Address : |
Flat No.171 and 172, Tower B, Kalpataru Residency, Opp Cine Planet,
Sion Matunga Estate, Kamani Marg, Sion (East), Mumbai, Maharashtra, India |
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Date of Birth/Age : |
16.07.1945 |
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Date of Appointment : |
17.06.2005 |
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Name : |
Mr. Narottam Babulal Vyas |
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Designation : |
Director |
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Address : |
A-3/1701, Whispering Palms, Lokhandwala Complex, Akurili Road,
Kandivali (East), Mumbai – 400101, Maharashtra, India |
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Date of Birth/Age : |
03.07.1954 |
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Date of Appointment : |
17.06.2005 |
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Name : |
Mr. Shashikant Nandkishore Ruia |
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Designation : |
Director |
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Address : |
67A, Walkeshwar Road, Opp. Birla School, Mumbai – 400 006,
Maharashtra, India |
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Date of Birth/Age : |
23.12.1943 |
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Date of Appointment : |
01.02.2006 |
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Name : |
Mr. Ravikant N Ruia |
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Designation : |
Director |
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Address : |
Bin Hamoodah Villa No. 17, Plot No. 992, 332/14, Villa No. 17,
Jumeriah, Dubai, UAE |
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Date of Birth/Age : |
22.04.1949 |
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Date of Appointment : |
01.02.2006 |
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Name : |
Mr. Melwyn Oswald Rego |
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Designation : |
Nominee Director |
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Address : |
E-53, Maker Kundan garden, Juhu Road, Santacruz (West), Mumbai – 400
040, Maharashtra, India |
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Date of Birth/Age : |
19.07.1959 |
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Date of Appointment : |
25.08.2008 |
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Name : |
Mr. Shankar Krishnan Narayanaswamy
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Designation : |
Nominee Director |
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Address : |
1602, Wallace Apartments, Sleater Road, Grant Road, Mumbai – 400 007,
Maharashtra, India |
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Date of Birth/Age : |
20.04.1956 |
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Date of Appointment : |
11.07.2008 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.09.2008)
|
Names of Shareholders |
No. of Shares |
|
Essar Steel Holdings Limited |
1489674500 |
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Essar Steel Holdings Limited and Shankar Krishnan Narayanaswamy |
10 |
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Essar Steel Holdings Limited and Girish Sathe |
10 |
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Essar Steel Holdings Limited and Madan Mundhra |
10 |
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Essar Steel Holdings Limited B Shivakumar |
10 |
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Essar Steel Holdings Limited and V Ganesan |
10 |
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Essar Steel Holdings Limited and Vipul Shah |
10 |
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Essar Steel Limited |
166942500 |
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Total |
1656617060 |
(As on 26.03.2008)
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Name of Allotees |
No. of Shares
Allotted |
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Essar Steel Limited |
20500000 |
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Essar Steel Holdings Limited |
382534781 |
(As on 08.12.2006)
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Name of Allotees |
No. of Shares
Allotted |
|
Essar Steel Limited |
98180500 |
(As on 30.09.2008)
|
Category |
Percentage |
|
Foreign holdings (foreign institutional investor(s), Foreign
companie(s), Foreign financial institution(s), Non resident Indian(s) or
Overseas corporate bodies or others |
89.92 |
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Bodies Corporate |
10.08 |
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Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Steel, Finance, Engineering Projects, Oil, Shipping
and Others. |
GENERAL
INFORMATION
|
Bankers : |
Indian Overseas Bank Nariman Point Branch, Ground Floor, Bakhtawar Tower, Nariman Point, Mumbai
– 400021, Maharashtra, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S R Batliboi and Company Chartered Accountant |
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Address : |
6th Floor, Express Towers, Nariman Point, Mumbai – 400021, Maharashtra,
India |
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Tel No.: |
91-22-22876485 / 6 |
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Fax No.: |
91-22-22876401 |
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Name : |
B P Jain and Company Chartered Accountant |
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Address : |
A-16, Everest Building, 156, Tradeo Road, Tradeo Mumbai – 400034,
Maharashtra, India |
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Financial Institutions : |
IDBI Trusteeship
Services Limited Asian Building,
Ground Floor, 17 R Kamani Marg, Ballard estate, Mumbai – 400001, Maharashtra,
India |
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Parent Company : |
Essar Steel Limited |
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Subsidiaries/ Holding Company : |
Essar Steel Holdings Limited |
CAPITAL STRUCTURE
(As on 30.09.2008)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4000000000 |
Equity Shares |
Rs.10/- each |
Rs.40000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1656617000 |
Equity Shares |
Rs.10/- each |
Rs.16566.170
Millions |
(As on 31.03.2008)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4000000000 |
Equity Shares |
Rs.10/- each |
Rs.40000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1529765750 |
Equity Shares |
Rs.10/- each |
Rs.15297.658
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
15297.658 |
3774.035 |
3.500 |
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2] Share Application Money |
0.000 |
257.578 |
1533.219 |
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
(9.614) |
(26.223) |
0.000 |
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NETWORTH |
15288.040 |
4005.390 |
1536.719 |
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LOAN FUNDS |
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1] Secured Loans |
5242.190 |
4302.275 |
1139.336 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
5242.190 |
4302.275 |
1139.336 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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Secured convertible Foreign Currency Facility |
2005.500 |
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TOTAL |
22535.730 |
8307.665 |
2676.055 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
14.536 |
5.967 |
0.000 |
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Capital work-in-progress |
24973.337 |
11535.682 |
2776.294 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
|
0.000 |
0.000 |
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Sundry Debtors |
0.000
|
0.000 |
0.000 |
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Cash & Bank Balances |
8704.938
|
1126.778 |
982.185 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
|
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Loans & Advances |
507.827
|
80.109 |
20.715 |
|
Total
Current Assets |
9212.765
|
1206.887 |
1002.900 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
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Current Liabilities |
11651.304
|
4433.696 |
1103.140 |
|
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Provisions |
13.600
|
7.175 |
0.000 |
|
Total
Current Liabilities |
11664.904
|
4440.871 |
1103.140 |
|
|
Net Current Assets |
(2452.139)
|
(3233.984) |
(100.240) |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
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|
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|
|
|
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TOTAL |
22535.730 |
8309.665 |
2676.055 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
|
|
Sales Turnover |
|
0.000 |
0.000 |
|
|
Other Income |
|
24.326 |
0.000 |
|
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Total Income |
|
24.326 |
0.000 |
|
|
|
|
|
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|
|
Profit/(Loss) Before Tax |
|
23.823 |
(26.224) |
|
|
Provision for Taxation |
|
7.214 |
0.000 |
|
|
Profit/(Loss) After Tax |
|
16.609 |
(26.224) |
|
|
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Expenditures : |
|
|
|
|
|
|
Payment to Auditors |
|
0.503 |
0.840 |
|
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Other Expenditure |
|
0.000 |
25.384 |
|
Total Expenditure |
|
0.503 |
26.224 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
68.28
|
0.00 |
NA |
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|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.00
|
0.00 |
NA |
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|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.26
|
(2.16) |
NA |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.00
|
(0.01) |
NA |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.11
|
2.18 |
1.46 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.79
|
0.27 |
0.91 |
LOCAL AGENCY
FURTHER INFORMATION
Form No. 8
|
Name of the company |
ESSAR STEEL (HAZIRA) LIMITED |
|
Presented By |
Mahadev Iyer,
Chief Financial Officer |
|
1) Date and description of instrument creating the change |
Letter of
Hypothecation dated October 6, 2005 executed by Essar Steel (Orissa) Limited (Therein
and hereinafter referred to as “the Borrower”) on favour of Indian Overseas
Bank (IOB) |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Foreign Currency
Letter of Credit Facility of US$ 121 million equivalent to Rs.5320 millions
together with interest thereon and amount of all charges, fees and all other
monies becoming due and payable by the Borrower to IOB under the Term Loan
Agreement dated October 6, 2005 made between the Borrower and IOB. |
|
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 |
The machineries /
vehicles / goods / book-dents as described in the Letter of Hypothecation
including goods machineries / goods which have already been fixed or lying
loose in the premises of the Borrower and the machineries / goods which are
hereafter be fixed in or brought into the said premises in addition to the
machineries / goods described in the Schedule or by way of substitution for
and in lieu of any machineries / goods which may from time to time be
replaced or stored (hereafter referred to as “the hypothecated goods”) |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
·
The charge created
by the aforesaid Letter of Hypothecation shall operate as a security by way
of a first charge for the due repayment by the Borrower to IOB of the foreign
currency letter of credit facility of USD 121 million equivalent to Rs.5320
millions together with interest thereon and amount of all charges, fees and
all other monies becoming due and payable by the Borrower to IOB under the
Term Loan Agreement dated October 6, 2005 made between the Borrower and IOB. ·
The Borrower
has undertaken to insure and keep the hypothecated goods insured to the full
extent of their from time to time at its own cost. ·
The
hypothecated goods are within the absolute disposition and control of the
Borrower and are free from any prior charge in favour of any other
creditor |
|
5) Name and Address and description of the person entitled to the charge. |
Indian Overseas Bank Nariman Point Branch, Ground Floor, Bakhtawar Tower, Nariman Point,
Mumbai – 400021, Maharashtra, India |
|
6) Date and brief description of instrument modifying the charge |
Not Applicable |
|
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. |
Not Applicable |
|
Corporate
identity number (CIN) Foreign company registration number |
U27100GJ2005FLC046273 |
|
Name of the
Company |
ESSAR STEEL (HAZIRA) LIMITED |
|
Address |
Post Hazira, District Surat – 394270, Gujarat, India |
|
This form is for |
Creation of Charge |
|
Type of Charge |
Movable Property
(not being pledge) |
|
Particulars of
the charge holder |
IDBI Trusteeship
Services Limited Asian Building,
Ground Floor, 17 R Kamani Marg, Ballard estate, Mumbai – 400001, Maharashtra,
India |
|
Nature or
description of the instrument(s) creating or modifying the charge |
Deed of
Hypothecation Dated 17th March, 2008 |
|
Date of the
instrument creating or modifying the charge |
17.03.2008 |
|
Amount secured by
the charge |
Rs.53680.000
Millions |
|
Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of Interests: Until the Loan is
fully repaid, the Borrower shall pay be to each of the lenders interests
calculated as per applicable interests rate for the time being and from time
to time on the outstanding loan more particularly described in schedule of
common loan agreement dated 17.03.2008 Terms of Repayment: The company shall
repay the principal amount of the loan in 28 consecutive quarterly
installments accordance with the amortization schedule set forth in schedule
IV to the common Loan Agreement dated 17.03.2008 Margin: NA Extent and Operation of the charge: A first pari
passu charge by way of hypothecation in favour of Security Trustee ·
All the
Borrower movables of the Projects Assets as set out in Schedule 4 of DOH
attached. ·
All right title
Interests benefit, claims and demand of borrower in project documents, letter
of credit guarantee performance bond ·
All
insurance contracts. Insurance proceeds ·
Bank
Accounts of the Projects Including TRA |
|
Short particulars
of the property charged (including location of the property) |
A first pari
passu charge by way of hypothecation in favour of Security Trustee ·
All the
Borrower movables of the Projects Assets as set out in Schedule 4 of DOH
attached. ·
All right
title Interests benefit, claims and demand of borrower in project documents,
letter of credit guarantee performance bond ·
All
insurance contracts. Insurance proceeds Bank Accounts of
the Projects Including TRA |
|
Particular of the
present modification |
NA |
Fixed Assets
·
Office Equipments
·
Vehicles
·
Furniture and Fixture
Web Details
Hazira Steel Complex
This highly integrated and modern complex consists of the following
manufacturing facilities:
Hot Briquetted Iron Plant
Subject operates the
world's largest gas-based hot briquetted iron (HBI) plant with a production
capacity of 5.1 million tonne per annum (MTPA). The plant uses state-of-the-art
technology, which ensures high quality raw material for the steel plant.
Subject is one of the world's lowest cost producers of HBI on a per tonne
basis. The plant is supported by a captive power plant of 32MW, which operates
at 100% capacity.
Salient features of Essar Steel's HBI plant
·
World's largest gas based HBI plant
·
Amongst the lowest per-tonne operating costs
·
Consistently operating at high capacity
·
Established customer base in both domestic and export
markets
Hot Rolled Coils
Subject
is the largest steel producer in western India, with a current capacity of 4.6
MTPA at Hazira, Gujarat, and plans to increase this to 9 MTPA. The Indian
operations also include an 8 MTPA beneficiation plant at Bailadilla,
Chattisgarh, and an 8 MTPA pellet complex at Visakhapatnam.
The
complex also houses the steel plant. and the 1.4 MTPA cold rolling complex. The
steel complex has a complete infrastructure setup, including a captive port,
lime plant and oxygen plant.
The
dedicated infrastructure of Hazira Complex includes an independent water
supply, power, lime and oxygen plant, a township and a captive port that can
handle up to 6 MTPA of cargo, with modern handling equipment including barges
and floating cranes.
Cold Rolling Complex
Subject adds substantial value to its world-class hot rolled coils
through a sophisticated Cold Rolling complex for further processing. The
complex includes two flying shear lines of capacity 0.2 MTPA each, and two
slitting lines of capacity 0.2 MTPA each, catering to the market of plates and
sheets. Subject is also the only Indian steel maker with a 1.2 MTPA hot skin
pass mill, from Clecim, the leading manufacturer from France. The mill allows
it to enhance the steel's surface quality to match international standards. Its
"service centre" concept, unique in India, reduces multiple handling
costs for customers because it allows subject 's plates and sheets to be used
directly by the end-user.
Subject produces highly customised value-added products catering to a variety
of product segments and is India’s largest exporter of flat products, selling
close to half of its production to the highly demanding US and European
markets, and to the growing markets of South East Asia and the Middle East. The
company’s products conform to quality specifications of international quality
certification agencies, like ABS, API, TUV Rhine Land and Lloyd’s Register.
Subject is the first Indian steel company to receive an ISO 14001 certification
for environment management practices.
Press Release
First contract for
CPE with Essar Steel (Hazira) Limited of India
CPE has been awarded a contract from Essar Steel (Hazira) Limited of India, to enhance an existing slab caster’s remotely adjustable mould and bender unit and provide one of each of the new units to Corus’ enhanced design.
The
contract comes after initial discussions were held earlier last year in Hazira,
India to inspect and appraise the existing equipment. Only one other meeting
was held in India before the technical and commercial issues were finalised,
prior to a contract signing ceremony on 25th January 2008 by Mr Pankaj
Kulkarni, CEO of Essar Steel (Hazira) Limited, and Brian Stalker, International
Sales Manager for Corus Process Engineering.
On his return from India, Brian Stalker commented: “This is an exciting
opportunity, with a new customer who is very focused on maintaining world class
maintenance and operational standards. We hope to generate a long and
lasting relationship with Essar Steel.”
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.48.52 |
|
UK Pound |
1 |
Rs.72.62 |
|
Euro |
1 |
Rs.63.76 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
- |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
27 |
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. |
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 |
|