MIRA
INFORM REPORT
|
Report Date : |
16.02.2008 |
IDENTIFICATION
DETAILS
|
Name : |
SREI
INFRASTRUCTURE FINANCE LIMITED |
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|
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|
Formerly Known As: |
SREI
INTERNATIONAL LIMITED |
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Registered Office : |
Vishwakarma, 86-C, Topsia Road (South), Kolkata – 700046, West Bengal |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
29.03.1985 |
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Com. Reg. No.: |
21-55352 |
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CIN No.: [Company
Identification No.] |
U29219WB1985PTC055352 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CALS11905F |
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PAN No.: [Permanent
Account No.] |
AAACS1425L |
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Legal Form : |
A Public Limited Liability
Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Leasing and Hire
Purchase of Construction Equipments, Commercial Vehicles and Automobiles in
India. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 19000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having satisfactory track. Available information indicates
satisfactory financial responsibility of the company. Trade relations are
fair. Payments are usually correct and as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered Office : |
Vishwakarma, 86-C, Topsia Road (South), Kolkata – 700046, West Bengal,
India. |
|
Tel. No.: |
91-33-22850112-15
/ 22850124-27 / 22870112 – 15 |
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Mobile No.: |
91-9830261703 |
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Fax No.: |
91-33-22857542 /
22858501 |
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E-Mail : |
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Website : |
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Regional
Office : |
v New Delhi v Mumbai v Bangalore v Hyderabad v Chennai v Bhubaneswar v Nagpur |
DIRECTORS
|
Name : |
Mr. Salil Kumar
Gupta |
|
Designation : |
Chief Mentor |
|
Address : |
538, Jodhpur Park,
Kolkata – 700068, West Bengal |
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Date of Birth/Age : |
76 years |
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Mobile No.: |
91-33-24732248 /
0147 |
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Experience : |
47 years |
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|
Name : |
Mr. M.S.Verma |
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Designation : |
Chairman |
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Address : |
A-55, Belvedere Park,
DLF City, Phase III, Gurgaon, Haryana
- 122002 |
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Date of Birth/Age : |
66 years |
|
Qualification : |
M.A., CAIIB |
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|
|
|
Name : |
Mr. Hemant
Kanoria |
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Designation : |
Vice Chairman and Managing Director |
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Address : |
32Q, New Road, Alipore, Kolkata – 700027, West Bengal |
|
Date of Birth/Age : |
42 years |
|
Tel. No.: |
91-33-24797705 |
|
Experience : |
25 years |
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|
|
|
Name : |
Mr. Dhruba P
Gupta |
|
Designation : |
Director |
|
Address : |
S15, Greater Kailash
II, New Delhi – 110048 |
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Tel. No.: |
91-11-26439985 |
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|
Name : |
Mr. Vasantrai H.
Pandya |
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Designation : |
Director |
|
Address : |
Park Side II
Building, Wing ‘B’, Raheja Chamber, Kulupwadi Road No.1, Borivali (East), Mumbai
– 400066, Maharashtra |
|
Date of Birth/Age : |
71 years |
|
Qualification : |
B.A. (Economics)
CAIIB |
|
Experience : |
43 years |
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Tel. No.: |
91-22-28863523 |
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Email: |
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|
Name : |
Mr. Satish C. Jha |
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Designation : |
Director |
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Address : |
G-61, Palam
Vihar, Gurgaon, Haryana – 122017, Punjab |
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Tel. No.: |
91-124-2360072 |
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Email: |
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|
Name : |
Mr. Sunil Kanoria |
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Designation : |
Director |
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Address : |
3, Middle Road,
Hastings, Kolkata – 700027 |
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Date of
Birth/Age : |
39 years |
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Qualification
: |
B. Com., FCA |
|
Experience : |
16 years |
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|
|
Name : |
Mr. B.
Swaminathan |
|
Designation : |
Director – Nominated
by Indian Renewable Energy Development Agency |
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Address : |
Flat 351B, Ranka
Colony, Bilekahalli, Bannerghatta Road, Bangalore - 560055 |
|
Date of
Birth/Age : |
72 years |
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Qualification
: |
B.A. (Hons.),
MDPA |
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|
Name : |
Mr. S. Rajagopal |
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Designation : |
Director |
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Address : |
71/1, Margosa
Road, 3rd Main Malleswaram, Bangalore - 560055 |
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Date of
Birth/Age : |
65 years |
|
Qualification
: |
B. Com., M.A.
LLB, CAIIB, Diploma in Industrial Finance |
|
Experience : |
30 years |
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|
Name : |
Mr. R. Sankaran |
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Designation : |
Director |
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Address : |
401, Sand
Pebbles, Perry Cross Road, Bandra (W), Mumbai - 400050 |
|
Date of
Birth/Age : |
58 years |
|
Qualification
: |
M.A. (Eco.),
Diploma in Business and Financial Management |
|
Experience : |
30 years |
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|
Name : |
Mr. Dr. Vasant H.
Karmarkar |
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Designation : |
Director –
Nominated by IFC – Washington, USA |
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|
Name : |
Mr. S. S.
Chaturvedi |
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Designation : |
Whole-time
Director (Executive Director) |
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|
Name : |
Mr. P. K. Pandey |
|
Designation : |
Whole-time
Director (Executive Director) |
|
Address : |
54/1/2, Girish
Mukherjee Road, Kolkata – 700023 |
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Date of
Birth/Age : |
59 years |
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Qualification
: |
FCA |
|
Experience : |
30 years |
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|
|
Name : |
Mr. K. K. Mohanty |
|
Designation : |
Whole-time
Director (Executive Director) |
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Address : |
N/4, 181,
Nayapali, Bhubaneshwar |
|
Date of
Birth/Age : |
47 years |
|
Qualification
: |
M. Tech, MBA |
|
Experience : |
16 years |
|
|
|
|
Name : |
Mr. Suneet K. Maheshwari |
|
Designation : |
Executive
Director |
|
Address : |
B13, Sumera Co.
op. Housing Society limited, MHADA Complex, SVP Nagar, Mumbai - 400053 |
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Date of
Birth/Age : |
47 years |
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Qualification
: |
B.Sc. (Hon), MBA |
|
Experience : |
23 years |
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|
|
|
Name : |
Mr. K.C. Jain |
|
Designation : |
Head Finance and
Company Secretary |
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|
Name : |
Mr. S. Rajagopal |
|
Designation : |
Director |
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|
Name : |
Mr. S. Chatterjee |
|
Designation : |
Whole time
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sandeep
Lakhotia |
|
Designation : |
Company Secretary |
SHAREHOLDING
PATTERN
As on 31.12.2006
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Shareholding of Promoter and Promoter Group |
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|
|
Indian |
|
|
|
Individuals/ Hindu Undivided Family |
234296 |
0.22 |
|
Bodies Corporate |
21662689 |
20.09 |
|
Public shareholding |
|
|
|
Institutions |
|
|
|
Mutual Funds/ UTI |
11745952 |
10.90 |
|
Financial Institutions / Banks |
10798 |
0.01 |
|
Foreign Institutional Investors |
50978907 |
47.30 |
|
Non-institutions |
|
|
|
Bodies Corporate |
11640502 |
10.80 |
|
Individuals -i. Individual shareholders holding nominal share
capital up to Rs 1 lakh |
7086684 |
6.58 |
|
ii. Individual shareholders holding nominal share capital in excess of Rs. 1 lakh. |
4133117 |
3.83 |
|
Any Other (specify) |
294601 |
0.27 |
|
Shares held by custodians and against which Depository Receipts
have been issued |
1157252 |
|
|
Total |
108944798 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Leasing and Hire
Purchase of Construction Equipments, Commercial Vehicles and Automobiles in India. |
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|
|
|
Products : |
·
Leasing ·
Hire
purchase ·
Full fledged
money changer |
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Imports : |
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|
Countries : |
Germany, Sweden,
USA, China and Singapore. |
GENERAL
INFORMATION
|
No. of Employees : |
420 |
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Bankers : |
Allahabad Bank |
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Facilities : |
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Banking
Relations : |
Good |
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|
Auditors : |
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|
Name : |
Deloitte Haskins
& Sells Chartered
Accountants |
|
Address : |
Park Plaza, South
Block, Flat 4A, 71, Park Street, Kolkata – 700016. |
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|
|
|
Associates: |
Quipo
Infrastructure Equipment Limited [Formerly Indian
Infrastructure Equipment Limited] |
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Subsidiaries : |
Ř
Srei Capital Markets Limited Address : Vishwakarma,
86C, Topsia Road (South), Kolkata – 700046 Line of Business:
Structuring of capital issues, preparation of techno economic feasibility and
project reports, mergers and acquisitions, resource mobilisation, organising
venture capital funding, private placement of equity and debt syndication Ř
Srei Insurance Services Limited Address :
Vishwakarma, 86C, Topsia Road (South), Kolkata – 700046 Lime of Business:
Composite broker for the insurance sector Ř
Srei Insurance Agency and Broking Limited Address :
Vishwakarma, 86C, Topsia Road (South), Kolkata – 700046 Line of Business:
Corporate Insurance Agency Ř
Srei Money Mall Limited Address : 77 Park
Street, Kolkata – 700016 Line of Business:
One stop shop for a wide array of retail services Ř
Srei Venture Capital Limited Address :
Vishwakarma, 86C, Topsia Road (South), Kolkata – 700046 Line of Business
: Float various types of venture capital funds Ř
Global Investment Trust Limited Address:
Vishwakarma, 86C, Topsia Road (South), Kolkata – 700046 Line of Business:
Trusteeship activities Ř
Srei Forex Limited Address: 77 Park
Street, Kolkata – 700016 Line of Business:
Fully fledged Money changer Ř
Indian Infrastructure Equipment Limited Address: Lakshmi Kunj,
8, Central Lane, Bengali Market, New Delhi – 110001 Line of Business:
Equipment Rental Ř
IIS International Infrastructure Services
GmbH Address:
Lessingstrasse 40, 53113 Bonn, Germany Line of Business:
Leasing and Renting of movable assets Ř
ZAO Srei Leasing Address: Russian
123289, Moscow, 38-3, 5th Floor, Narodnogo, Opolchenia Street Line of Business
: Leasing of equipment and relevant financing Ř
Aermid Srei Healthcare Finance Limited Address: 107,
Warnford Court, 2nd Floor, Room no. 107, 29, Throgmorton Street,
London, EC 2N 2AT, UK Line of Business
: Leasing of healthcare equipment |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
400000000 |
Equity Shares |
Rs. 10/- each |
Rs. 4000.000 Millions |
|
30000000 |
Preference Shares |
Rs. 100/- each |
Rs. 3000.000 Millions |
|
|
Total |
|
Rs. 7000.000 Millions |
Issued,
Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
109416425 |
Equity Shares |
Rs. 10/- each |
Rs. 1094.100 Millions |
Paid-up
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
108943598 |
Equity Shares |
Rs. 10/- each |
Rs. 1089.400 Millions |
|
|
Add: Forfeited
Shares |
|
1.500 Millions |
|
|
TOTAL: |
|
Rs. 1090.900 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1090.900 |
1090.900 |
534.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3679.400 |
3014.300 |
1104.800 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4770.300 |
4105.200 |
1639.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
23263.900 |
13280.800 |
7991.800 |
|
|
2] Unsecured Loans |
9771.100 |
2866.500 |
1053.400 |
|
|
TOTAL BORROWING |
33035.000 |
16147.300 |
9045.200 |
|
|
DEFERRED TAX LIABILITIES |
644.700 |
644.700 |
478.200 |
|
|
Mezzanine Capital |
0.000 |
796.500 |
810.100 |
|
|
|
|
|
|
|
|
TOTAL |
38450.000 |
21693.700 |
11972.800 |
|
|
|
|
|
|
|
|
APPLICATION OF
FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net
Block] |
4346.100 |
2237.500 |
178.000 |
|
|
Capital
work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
1466.800 |
1038.900 |
495.000 |
|
|
DEFERREX TAX
ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS,
LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
108.200
|
88.100
|
|
|
Sundry Debtors |
0.000
|
16.900
|
41.400
|
|
|
Cash & Bank
Balances |
0.000
|
36.800
|
436.600
|
|
|
Other Current
Assets |
32598.400
|
18269.300
|
12003.500
|
|
|
Loans &
Advances |
1712.200
|
841.000
|
715.000
|
|
Total Current Assets |
34310.600
|
19272.200
|
13284.600 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current
Liabilities |
1078.700
|
332.200
|
1577.400
|
|
|
Provisions |
655.500
|
582.300
|
420.900
|
|
Total Current Liabilities |
1734.200
|
914.500
|
1998.300 |
|
|
Net
Current Assets |
32576.400
|
18357.700
|
11286.300
|
|
|
|
|
|
|
|
|
MISCELLANEOUS
EXPENSES |
60.700 |
59.600 |
13.500 |
|
|
|
|
|
|
|
|
TOTAL |
38450.000 |
21693.700 |
11972.800 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
3979.900 |
2267.800 |
1295.800 |
|
|
Other Income |
20.800 |
4.700 |
3.500 |
|
|
Total Income |
4000.700 |
2272.500 |
1299.300 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
857.900 |
682.000 |
398.000 |
|
|
Provision for Taxation |
65.400 |
197.800 |
115.000 |
|
|
Profit/(Loss) After Tax |
792.500 |
484.200 |
283.000 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
13.200 |
NA |
NA |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Administrative and Other Expenses |
544.800 |
357.400 |
331.200 |
|
|
Finance Charges |
2146.600 |
1067.300 |
558.300 |
|
|
Depreciation |
332.400 |
94.500 |
11.800 |
|
|
Miscellaneous Expenses |
7.300 |
10.800 |
0.000 |
|
|
Bad Debts written off |
25.100 |
21.900 |
0.000 |
|
|
Provisions as per the norms of Reserve Bank
of India and Foreign Financial Institutions |
77.800 |
29.800 |
0.000 |
|
|
Provision for
Premium on Unsecured Subordinated Bonds |
8.800 |
8.800 |
0.000 |
|
Total Expenditure |
3142.800 |
1590.500 |
901.300 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 (1st Quarter) |
30.09.2007 (2nd Quarter) |
31.12.2007 (3rd
Quarter) |
|
Sales Turnover |
1213.500
|
1492.600
|
1735.600
|
|
Other Income |
3.100
|
14.600
|
20.400
|
|
Total Income |
1216.600
|
1507.200
|
1756.000
|
|
Total Expenditure |
173.400
|
194.100
|
335.300
|
|
Operating Profit |
1043.200
|
1313.100
|
1420.700
|
|
Interest |
675.300
|
866.000
|
992.200
|
|
Gross Profit |
367.900
|
447.100
|
428.500
|
|
Depreciation |
117.300
|
119.100
|
124.700
|
|
Tax |
17.800
|
32.100
|
20.200
|
|
Reported PAT |
232.800
|
295.900
|
283.600
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
19.80
|
21.30 |
21.78 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
21.55
|
30.07 |
30.71 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.21
|
3.17 |
2.95 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.16 |
0.24 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
7.28
|
4.15 |
6.73 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
19.78
|
21.07 |
6.64 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
The company was
incorporated on 29th March 1985 at Kolkata in West Bengal having
Company Registration Number 55352.
The company
obtained the certificate of commencement of business on 9th April
1985.
The company's name
was changed to Srei International Limited on 29th May 1992 and
further changed to SREI International Finance Limited with effect from 12th
April 1994 to reflect the focus on financial services.
The company
commenced its activities in the year 1989. The company is engaged in the
leasing and hire purchase of construction equipments, commercial vehicles and
automobiles in India. The company is also authorised to purchase foreign
currency notes and travellers cheques.
The company entered
into agreement with Citicorp Service Inc., USA to market Visa Travel Money
cards under its own brand name. The company tapped the capital market in July
1992 to set up a 100% EOU to manufacture acetate cigarette filter rods and
commenced production in March 1993.
In January 1994,
the company got approval as Category – I merchant banker. The merchant banking
division offers various services like corporate advisory services, project
counselling, preparation of project reports and appraisal, underwriting and
issue management, etc. The company extended its operations by venturing into
mutual funds, corporate stock broking housing finance and other related areas.
The company
achieved a capital adequacy of 21.93% towards the end of 2000-2001 as against a
minimum 12% recommended by Reserve Bank of India. The company entered into a
six year project with IFC, Washington to finance Rs. 650 millions of solar
energy systems across rural India. The project is being implemented on behalf
of the Global Environment Facility (GEF) of the World Bank under the Photo
Voltaic Market Transformation Initiative (PVMTI).
The company
financed for the Tanir Bavi Power Corporation Private Limited in 2000-2001. The
project envisages setting up of a Rs. 8800 millions and 220 MW barge-mounted
naptha-based combined cycle power plant on BOO basis at Mangalore, Karnataka.
BUSINESS
The company is
engaged in the business of leasing and hire purchase of construction
equipments, commercial vehicles and automobiles in India.
The company is also
authorised to purchase foreign currency notes and travellers cheques.
It imports heavy earthmoving equipments and
construction equipments from Germany, Sweden, USA, China and Singapore.
Generic names of
the principal products / services of the company are:
·
Leasing
·
Hire purchase
·
Full fledged
money changer
The company provides
the following nature of services:
·
Lease and Hire
Purchase
·
Financing
·
Heavy
Equipment’s on Operating Lease
·
Full fledged
money changer
·
Buy/Sell of
Bonds and Securities
·
Advisory
Services.
The company has
diverse range of Business Spanning:
·
Lease and Hire
Purchase
·
Construction
Equipment
·
Commercial
Vehicle
·
Auto Finance
·
Forex
·
Infrastructure
Finance
·
Fixed Deposit
·
Home Finance
·
Capital Market
·
Security
Trading
The Company’s
Vendors for Lease and Hire Purchase of Equipment’s are:
·
ACE Cranes
·
Atlas Copco
·
Bitelle
·
Bharat Earth
Movers Limited
·
Caterpillar
Asia Limited
·
Escort
Construction Equipment Limited
·
Escort JCB
Limited
·
Greaves
Limited
·
Gujarat Apollo
·
Hindustan
Motors Limited
·
Ingersoll-Rand
(India) Limited
·
Larsen &
Toubro Limited
·
Parker
·
Svedala
Industries India Private Limited
·
Telco
Construction Equipment Company Limited
·
Writgen
·
Tatra
·
Bharat Earth
Movers
·
Ditch Witch
·
Volvo
·
Nordberg
OPERATIONAL REVIEW:
Investment in the
infrastructure sector has been progressively growing.
Recently, the Government
has announced an investment of about USD 320 billion in the next 5 years for
infrastructure development in India. Out of this investment about 44 percent is
envisaged to be brought in through public-private partnership. The key sector
identified within infrastructure is roads, ports, railways and power.
This is the 17th year of
the Company's involvement in infrastructure sector in India and with the
significant growth which this sector has recorded, in the last few years the
Company has also grown in tandem.
The disbursements and
profits have grown substantially, inspite of the fact there has been increased
competition from major players in the financial sector.
The Company continues to
maintain its market leadership in the infrastructure equipment financing
business. Some of the key highlights of the Company's performance during the
year under review are:
·
New
Business done was Rs. 43044.900 Millions as compared to Rs. 24807.600 Millions
during the last year, an increase of 74 percent.
·
The total
asset under management of the company increased to Rs. 50826.000 Millions as
against Rs. 33930.600 Millions last year, a growth of about 50 percent.
·
The
gross profit (before depreciation, bad debts, provision and tax) grew to Rs.
1302.000 Millions from Rs. 837.000 Millions last year, a jump of 56
percent.
·
Profit
before taxation increased to Rs. 857.900 Millions as against Rs. 682.000
Millions in the last year, an increase of around 26 percent.
·
Net
profit after taxation increased to Rs. 792.500 Millions as against Rs.484.200
Millions in the last year, an increase of around 64 percent.
·
Capital
adequacy of the Company is 14.25 percent as on 31st March, 2007.
The Company has complied
with all the norms prescribed by the Reserve Bank of India including the newly
introduced Fair practices, Anti money laundering & Know the customer (KYC)
guidelines and also all the mandatory accounting standards issued by The
Institute of Chartered Accountants of India. It has adopted a sound and forward
looking accounting policy of providing for non performing assets in terms of
the guidelines laid down by the Foreign Financial Institutions, which are more
stringent than the guidelines of the Reserve Bank of India.
JOINT VENTURE WITH BNP PARIBAS LEASE
GROUP:
On 31st May, 2007, the
Board has approved a strategic partnership with BNP Paribas Lease Group (BPLG)
for the equipment finance and insurance broking business in India. BPLG is a
100 percent subsidiary and the leasing arm of BNP Paribas, a major European
Bank having a long presence in India. BPLG is a European market leader
specialised in asset finance and financing investments made by companies and
professionals, either through the intermediary of its partners (manufacturers,
importers and vendors of equipment) or directly to the customers. BPLG has been
in this business for the last 50 years with a global balance sheet of Euro 15
billion and important business presence in Austria, Belgium, France, Germany,
Hungary, Italy, the Netherlands, Poland, Portugal, Spain and the UK. SREI
Infrastructure Development Finance Limited (SIDFL), which is currently a wholly
owned subsidiary of the Company, shall be the Joint Venture company where the
equipment financing business will be carried out along with BPLG. The Joint
Venture Company, SIDFL will have 50 percent equity by BPLG and 50 percent by
SREI. The management has initiated proper steps in consultation with reputed
investment bankers and solicitors to comply with all statutory and legal
regulations. BPLG would infuse a sum of Rs. 7750 Millions towards its capital
contribution. It is expected that the networth of the Company after the
subscription by BPLG would be Rs. 8000 Millions. It is also expected that this
tie-up would help SREI to expand its equipment financing business much faster
as it would enable the Company to raise funds at lower cost and also expand the
funding sources.
SREI will gain from the international expertise of BPLG and will expand the
equipment finance portfolio from infrastructure equipment to agricultural,
medical and other class of equipments where BPLG has their expertise.
The Company will continue
to be involved in infrastructure financing and development. It will be in a
position to expand its business with the available capital in infrastructure
sector. The Company will continue to manage the advisory and investment
banking, venture capital business through the subsidiaries. Quipo
Infrastructure Equipment Limited, the equipment bank and the overseas
operations will be under SREI.
The Company is quite
confident that this Joint Venture will result in higher profits and higher
growth of business without diluting the equity thereby creating higher
shareholder value.
CAPITAL:
In the year 2000,
the Company had issued 52,66,075 unsecured subordinated bonds of Rs. 100/-
each, bearing four detachable tradable warrants per bond. Each of these
warrants entitled the holder to one equity share of the Company. Such
applications were required to be made on 25th August, 2005 or on each day
falling 3,6,9,12,15,18,21 and 24 months thereafter. The price for allotment of
equity shares against the warrants is fixed at a 40 percent discount to the
average of the daily highest and lowest prices of the Company's shares on the
National Stock Exchange during the preceding six calendar months, subject to a
floor of Rs. 10 and a cap of Rs. 500 per equity share. The maximum number of
equity shares that could be allotted against the warrants was
2,10,64,300.
During the year 2006-07,
the Company allotted 1,080 equity shares to the warrant holders who exercised
their options and as on 31st March, 2007, only 9,608 warrants remain
outstanding in issuance.
BUSINESS OUTLOOK AND FUTURE PLANS:
Government of India
realises that infrastructure creation leads to generation of employment and
also reduction in poverty. Thus, despite what the outlook is on the domestic
and international fronts, government will go ahead full steam on building
infrastructure assets. Government realises that addition to infrastructure
capacity is the only way to maintain the high growth momentum. As per
government estimates, investments to the tune of USD 320 to 350 billion would
be required only in the infrastructure sectors over the next five years. This
unfolds exciting opportunities for the Company.
Government remains
committed to the development of rural India so that the benefits of economic
reforms reach the masses. The Bharat Nirman' programme is aimed at developing
rural infrastructure namely roads, housing, irrigation, water supply,
electrification and telecom. This year's budget has witnessed an increase of
31.6 percent in the outlay for Bharat Nirman to Rs. 246030 Millions. The corpus
for Rural Infrastructure Development Fund (RIDF-XIII) has been raised to Rs.
12,0000 Millions from last year's Rs. 100000 Millions. A separate window for
rural roads would continue with a corpus of Rs. 40000 Millions.
The National Highway
Development Programme (NHDP) has come a long way. The Golden Quadrangle is
nearing completion and work is in full swing on the North-South and East-West
corridors. The N-S-E-W corridor is scheduled to be completed by year 2009. In
totality, the project is aimed to construct, widen, rebuild more than 40,000 km
of NH involving a total investment of over Rs. 2 Million. The preferred mode for
undertaking such projects is the build-operate-transfer (BOT) mode and its
variants. Budgetary support for NHDP has been enhanced to Rs. 106670 Millions
in 2007-08. In addition to NHDP, there are the ongoing Special Accelerated Road
Development Programme spanning 7639 km of roads in North-East and the Rs. 600
billion Pradhan Mantri Gram Sadak Yojana whose target deadline is year 2010-11.
Hectic activity in road building is also taking place at the state and city
levels.
The power sector will be a
focus area for the government during 2007-08 because the performance of this
sector has been much below expectation. The reduced target for capacity
addition in the Tenth Plan (2002-07) was 41,110 MW. Actual accretion was only
21,200 MW. Besides, aggregate technical and commercial (ATC) losses are in the
range of 50 percent. Despite such ground-level problems, government has laid
down 3 ambitious missions - (a) power availability for all by year 2012, (b)
electrification of all villages by year 2010, and (c) access to electricity for
all households by year 2010. The installed capacity by the end of Tenth Plan
stands at 128,000 MW. Government aims to achieve an installed capacity of
200,000 MW by power utilities by the end of Eleventh Plan (2007-12). Seven
ultra-mega projects (minimum capacity 4,000 mw) are under process. Government
will also facilitate setting up of merchant power plants by private developers
and private participation in transmission projects. The Accelerated Power
Development and Reforms Project (APDRP), aimed at reducing ATC losses, has been
restructured to cover all district headquarters and towns with a population of
50,000 and more. Budget outlay for APDRP for 2007-08 has been enhanced to Rs.
8000 Millions. Also, allocation for the Rajiv Gandhi Grameen Vidyutikaran
Yojana has been increased to Rs. 39830 Millions.
Ports figure prominently in
government's development agenda. Cargo traffic in the 12 major ports and 185
non-major ports is estimated to rise to 877 MTPA by 2011-12 from 576 MTPA registered
in 2005-06. Containerised cargo is expected to grow at 15.5 percent per annum.
The National Maritime Development Programme (NMDP) aims to invest over USD 18
billion in two phases. Phase I has identified 276 projects in the major ports
to be completed by year 2012 that would entail an investment of over USD 12
billion. New berths are to be created on BOT basis.
SUBSIDIARY COMPANIES:
During the year under
review, the Company, in order to cash on profitable leasing business
internationally has invested further Euro 7,00,000 in the Share capital of IIS
International Infrastructure Services GmbH, the subsidiary Company incorporated
in Germany.
During the year under
review, the Company incorporated a wholly owned subsidiary company in the name
of SREI Infrastructure Development Limited' with an initial capital of Rs.
20.000 Millions on 13th June, 2006 and the name was subsequently changed to
SREI Infrastructure Development Finance Limited' w.e.f. 16th April, 2007. The
name of SREI Money Mall Limited' was also changed to SREI Sahaj e-Village
Limited' w.e.f. 8th May, 2007.
The statement pursuant to
Section 212 of the Companies Act, 1956, containing details of Company's
subsidiaries in India and Overseas, forms part of the Annual Report.
In view of the exemption
received from Ministry of Company Affairs, Government of India vide letter no.
47/49/2007-CL-III dated 5th March, 2007, the audited statement of accounts
along with the reports of the Board of Directors and Auditors relating to the
Company's subsidiaries in India and Overseas viz., SREI Forex Limited, SREI
Capital Markets Limited, SREI Insurance Agency & Broking Limited, SREI
Insurance Services Limited, SREI Venture Capital Limited, SREI Sahaj e-Village
Limited (formerly SREI Money Mall Limited), Global Investment Trust Limited,
Bengal SREI Infrastructure Development Limited (subsidiary of SREI Capital
Markets Limited) and IIS International Infrastructure Services GmbH, Germany
for the financial year ended 31st March, 2007, SREI Infrastructure Development Finance
Limited (formerly SREI Infrastructure Development Limited) for the period ended
31st March, 2007 and ZAO SREI Leasing, Russia (subsidiary of IIS International
Infrastructure Services GmbH, Germany) for the financial year ended 31st
December, 2006 are not annexed as required under Section 212(8) of the
Companies Act, 1956. Shareholders who wish to have a copy of the full report
and accounts of the aforesaid subsidiary companies will be provided the same on
receipt of a written request from them. These documents will be put up on the
Company's www.srei.com and will also be available for inspection by any
shareholder at the registered office of the Company on any working day during
business hours.
NBFIs IN INDIA:
The role of Non-Banking Financial Institutions (NBFIs) in
asset creation and infrastructure development is well acknowledged today,
especially in sectors which are considered to be growth engines of the economy,
namely infrastructure, transportation, small & medium enterprises (SMEs), rural
sectors, etc. For long, NBFIs have been the primary conduit for credit delivery
to the dispersed, underbanked and under-serviced sections of the economy. They
have thrived on their inherent strengths of wider reach, intimate local
knowledge, credit origination and appraisal skills, suitably trained collection
machinery, close monitoring of borrowers and customised client service.
The NBFIs have evolved over the years. Unlike in the past, presently they are very
well regulated and supervised by the RBI. The late 90s shakeout among the
Indian NBFIs witnessed the survival of few large conservatively operating
institutions. These weathered the crisis and since then have grown and expanded
their business notwithstanding keen competition Some multinationals too have
entered and set up NBFIs focusing on the areas of equipment and customer
finance. Stiff competition is also being encountered by the NBFIs from banks
and other financial institutions, both domestic and foreign, in their
traditional areas of retail lending.
In order to enable the NBFIs to gear up for future challenges, the RBI has
taken a number of steps. This is indeed a welcome trend. RBI is now keen on
creating a facilitating environment for NBFIs rather than just binding them
under strict regulations. To address their need for long term funding, RBI has
somewhat eased NBFIs' access to ECBs for infrastructure equipment
financing.
Fixed Assets:
Freehold Land,
Buildings, Furniture & fixtures, Motor Vehicles, Plant and Machinery etc.
SREI Assets Rs. 42000.000 Millions
New Delhi, 30.10.2006: SREI Infrastructure Finance Limited. (SREI), the leading Indian private
sector infrastructure equipment finance, infrastructure project finance and
renewable energy product financing institution registered
a 56% growth in the net profit before taxes for the half year ended 30.09.2006.
Riding on buoyant
market conditions, SREI maintained its robust show in the half year under
review, posting a rise in profit before tax to Rs. 440.300 Millions from Rs.
282.000 Millions in the corresponding half-year period last year. Net profit
after tax zoomed to Rs. 298.300 Millions up from Rs. 195.200 Millions in the
same period last year, a rise of 53%. The operating profit increased to Rs.
574.100 Millions in the first half-year period of the current financial year
from Rs. 301.800 Millions in the corresponding period last year, registering an
increase of 90%. The total income increased to Rs. 1814.300 Millions in the
first half year period of the current financial year from Rs. 833.900 Millions
in the corresponding period last year, registering an increase of 118%.
The net profit
after tax for this quarter touched Rs. 148.100 Mllions up from Rs. 85.800 Millions
in the second quarter of last fiscal, registering an increase of 73%.
Disbursements for the first six months in this fiscal is Rs. 213.400 Millions
as against Rs. 115.500 Millions in the corresponding period last year, posting
a rise of 85%. The total asset under management of the Company is about Rs.
420.000 Millions.
Announcing the
results today, Mr. Hemant Kanoria, Vice Chairman and Managing Director, SREI
said, “They are on track where their target for business disbursements and
profits are concerned. This year they have also expanded their funding in the
railway sector and expect this business to expand in the future rapidly. With
this, they have now established ourselves in the road, power, ports, aviation
and urban infrastructure sectors.”
The Company’s
improved performance during the quarter has been the result of the numerous
opportunities in the infrastructure sector. SREI through its resources has been
able to strategically position itself in the Indian Infrastructure development
sector and capitalize on the huge business opportunities, as evident from the
announcements of the Government & National Highways Authority.
About SREI
Infrastructure Finance Limited
SREI, the country’s
leading private sector infrastructure equipment, infrastructure project and
renewable energy financing company commenced its operations in the year 1989.
SREI is operating across the country with a network of 43 branches and has also
expanded its operations overseas. SREI is the first Indian Infrastructure
Financing Company to be listed on the London Stock Exchange (LSE).
International Finance Corporation (IFC) Washington (World Bank Group), KfW
Germany & DEG Germany (Financial Institutions owned by the Government of
Germany), FMO the Netherlands, (Financial Institution owned by the Government
of Netherlands), BIO (Belgium Financial Institutions owned by the Government of
Belgium) and FINNFUND (Financial Institution owned by the Government of
Finland) are among the large stakeholders in the Company.
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.39.66 |
|
UK Pound |
1 |
Rs.78.16 |
|
Euro |
1 |
Rs.58.09 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
73 |
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 |
|