MIRA
INFORM REPORT
|
Report Date : |
28.02.2008 |
IDENTIFICATION
DETAILS
|
Name : |
MUNDRA PORT AND SPECIAL ECONOMIC ZONE LIMITED |
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Registered Office : |
Adani House Mithakhali Six Roads, Navrangpura, Ahmedabad, Gujarat |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
26.05.1998 |
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Com. Reg. No.: |
34182 |
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CIN No.: [Company
Identification No.] |
L63090GJ1998PLC034182 |
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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 : |
Construction of ports |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
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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 |
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Maximum Credit Limit : |
USD 29900800 |
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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 and reputed company and a part of
Adani Group. The company recently came out with an IPO which was a great success.
Trade relations are fair. Fundamentals are strong and healthy. Payments are
reported as usually correct and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long
–run. |
LOCATIONS
|
Registered Office : |
Adani House Mithakhali Six Roads, Navrangpura, Ahmedabad, Gujarat,
India |
|
Tel. No.: |
91-79-25555555/347/876 |
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Fax No.: |
91-79-25555604/62565500 |
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E-Mail : |
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Website : |
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Corporate
Office: |
Post Box No. 1, Navinal
Island, Mundra (Kutch) 370421 |
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Tel. No.: |
91-2838-289248/448 |
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Fax No.: |
91-2838-289200/440 |
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Email: |
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Mumbai Office: |
Mundra Port & SEZ Ltd, 62, Maker Chambers III, 6th Floor, Nariman Point, Mumbai 400 021 |
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Tel. No.: |
91-22-22022323 |
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Fax No.: |
91-22-22022479/481/483 |
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New Delhi
Office: |
Mundra Port And SEZ Ltd, "Adani Corporate House" Plot No : 83,Institutional Area , Sector 32 , Gurgaon - 122001. |
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Tel. No.: |
91 124 2555555 |
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Fax No.: |
91 124 2555011 |
DIRECTORS
|
Name : |
Mr. Rajesh S Adani |
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Designation : |
Director |
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Name : |
Mr. K N Venkatasubramanian |
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Designation : |
Director |
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Name : |
Mr. .Ameet H Desai |
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Designation : |
Director |
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Name : |
Mr. Sanjay Gupta |
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Designation : |
Director |
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Name : |
Mr. Surendra Kumar Tuteja |
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Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mrs. Dipti Shah |
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Designation : |
Company Secretary |
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|
|
|
Name : |
Mr. Gautam S Adani |
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Designation : |
Chairman, Managing Director & Chief Executive Officer |
BUSINESS DETAILS
|
Line of Business : |
Construction of ports |
GENERAL
INFORMATION
|
Bankers : |
NA |
|
s |
|
|
Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000000 |
Equity Shares |
Rs. 10/- each |
Rs.10000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
363240000 |
Equity Shares |
Rs. 10/- each |
Rs.3632.400 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 |
3632.400 |
1830.300 |
1830.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3842.800 |
4155.400 |
3894.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
7475.200 |
5985.700 |
5724.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
12813.400 |
8919.200 |
5898.500 |
|
|
2] Unsecured Loans |
9.000 |
699.000 |
345.300 |
|
|
TOTAL BORROWING |
12822.400 |
9618.200 |
6243.800 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
|
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TOTAL |
20297.600 |
15603.900 |
11968.100 |
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|
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|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
19821.900 |
14849.500 |
11262.900 |
|
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Capital work-in-progress |
4179.400 |
4121.700 |
4371.500 |
|
|
|
|
|
|
|
|
INVESTMENT |
789.900 |
1228.200 |
320.300 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
104.300
|
46.100 |
30.500 |
|
|
Sundry Debtors |
3449.300
|
787.800 |
426.800 |
|
|
Cash & Bank Balances |
569.000
|
956.500 |
305.800 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
1494.900
|
912.800 |
1080.800 |
|
Total
Current Assets |
5617.500
|
2703.200 |
1843.900 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
9933.400
|
6685.700 |
5869.300 |
|
|
Provisions |
177.700
|
613.000 |
74.900 |
|
Total
Current Liabilities |
10111.100
|
7298.700 |
5944.200 |
|
|
Net Current Assets |
[4493.600]
|
[4595.500] |
[4100.300] |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
113.700 |
|
|
|
|
|
|
|
|
TOTAL |
20297.600 |
15603.900 |
11968.100 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
5797.400 |
3845.400 |
2640.900 |
|
|
Other Income |
210.500 |
158.100 |
133.500 |
|
|
Total Income |
6007.900 |
4003.500 |
2774.400 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
1796.400 |
1148.400 |
904.600 |
|
|
Provision for Taxation |
[124.700] |
489.200 |
286.100 |
|
|
Profit/(Loss) After Tax |
1921.100 |
659.200 |
618.500 |
|
|
|
|
|
|
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Expenditures : |
|
|
|
|
|
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Salaries, Wages, Bonus, etc. |
147.900 |
72.500 |
65.200 |
|
|
Interest & Financial Charges |
667.600 |
573.400 |
360.800 |
|
|
Power & Fuel |
0.000 |
60.800 |
50.600 |
|
|
Depreciation & Amortization |
807.000 |
614.200 |
481.000 |
|
|
Other Expenditure |
0.000 |
0.000 |
645.600 |
|
Total Expenditure |
1622.500 |
1320.900 |
1603.200 |
|
QUARTERLY RESULTS
|
Year |
31.12.2007 |
|
Type |
3rd
Quarter |
|
Sales Turnover |
2053.500 |
|
Other Income |
46.500 |
|
Total Income |
2100.000 |
|
Total Expenditure |
808.400 |
|
Operating Profit |
1291.600 |
|
Interest |
306.700 |
|
Gross Profit |
984.900 |
|
Depreciation |
268.900 |
|
Tax |
191.600 |
|
Reported PAT |
524.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
31.97
|
16.46 |
22.29 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
30.98
|
29.86 |
34.25 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.07
|
5.01 |
5.09 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.24
|
0.19 |
0.16 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.06
|
2.83 |
2.13 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.56
|
0.37 |
0.31 |
LOCAL AGENCY
FURTHER INFORMATION
WEBSITE DETAILS:
Subject promoted by the Adani Group, is located
in Kutch District, Gujarat and is the largest SEZ of India. Subject is a
multi-product and large format private SEZ approved by the Government of India.
Subject is located in the Gulf of Kuchh, in the southern part
of the Kuchh peninsula in the state of Gujarat.
Kuchh (or Kutch)
· The largest district in Gujarat (and in India as well) has an area of 45,652 square km constituting 23% geographical area of the State.
· Bound by the sea in the South and West and by the Ranns (salt marshlands) in the East and North.
· Kutch has 951 villages with a population of 1.5 million.
· In the global context, Mundra SEZ located on the Western coast of India is ideally located to access the Asian, European, American, South American and African Markets.
· Mundra has an attractive and large hinterland spread over Western, Northern and North Eastern India covering 70% of India’s GDP. Large Industries exist in the vicinity.
Promoters
The Adani Group is the prime Promoter and Developer of
Mundra SEZ. A separate company – Mundra Port and Special Economic Zone Limited.
has been incorporated under the provisions of The Companies Act, 1956 for the
development, operation and maintenance of the SEZ.
The Adani Group, one of the fastest growing Corporate Groups in India, consists
of a professionally managed network of companies across the country and abroad.
The proof of the Group’s robust growth is demonstrated by the fact that its
turnover has crossed US$ 4.4 billion.
Collaborators
MOU Signed with Bharti (Airtel) for Infocomm / Telecom
MOU Signed with Veolia Water (France) for Water and Waste Management.
- Desalination
Plant
- Distribution of water
- Collection of Industrial and Domestic waste
- Recycling of water.
- Redistribution of water
MOU with Sterling Hospital for Healthcare Facility.
Panchshil Marriott Courtyard to build 200 room courtyard and 150 Room JW
Marriott
GWIL to supply 6 MLD of Narmada water, extended upto 30 MLD
Karnavati Leisure and Entertainment Private.
Limited. to establish
- 100 Room Hotel with international franchise
- Club with full sporting and recreational facilities
- 3-Screen Multiplex with Mall
MOU signed with Kutch Hotel and Resorts Private. Limited. to set up a
star 120 Room Hotel.
Advantage Mundra
Ever since
its inception in 1998, subject has been unrelenting in
its pursuit of excellence. The many set by
subject are witness to its
technological, infrastructural and management expertise.
· Modern, state-of-the-art port
· Depth of 17.5 meters
· All weather multi-purpose terminal with 7 general-purpose berths, 1 berth for liquid cargoes and 2 container berths operated by MICT (Dubai Ports World). A new container terminal with 2 berths will be operated by MPSEZ One berth is already operational and the other one will be operational by November 2007.
· Proximity to northern and western hinterland which contributes to 60% of the EXIM trade
· 64 km long privately developed rail network
· Well connected by road to the national highway network
· State-of-the-art Material Handling Systems which includes a conveyor system connecting the berth to storage areas. 4 Gottwald and 4 Liebherr Cranes of 100 MT SWL each and a Fertilizer Raw Material Conveyor System
· Fertilizer Raw Material godowns with bagging systems
· 23 closed godowns covering with an area of 1,00,815 sq.m and 4,34,650 sq.m of open storage space .
· Tank farms with storage capacity of 2,78,000 KL with additional capacity to be added in near future
Subject is an integral part of the Mundra SEZ. The SEZ
status confers significant benefits to the developers and business partners of
the port, thus providing cost-efficient solutions to the end-customers.
Project: Mundra SEZ
The Government of India and the State Government of
Gujarat have accorded the approval to the Adani Group to Develop, Operate and
Maintain a Special Economic Zone (SEZ) at Mundra in Gujarat. The Project is
referred to as Mundra SEZ.
Subject would provide integrated infrastructure
encompassing all infrastructure relating to business, living, learning, as well
as recreation facilities so as to make the zone self-sufficient. Subject will
have world-class Industrial, Business, and Social infrastructure like development
of Industrial plots, Commercial and Residential buildings, Schools, Colleges,
Hospital, Entertainment, Sports and Recreation facilities. The SEZ will have
all essential utilities such as power generation, transmission and distribution
network, water desalination plant and supply network, sewage, water recycling
plant, telecom network and multi-modal connectivity viz. roads, airport,
seaport and rail.
The Adani Group is developing the 13000 Ha. SEZ with the
Company as its main stay, with the 1st phase encompassing 2550 Ha. The company
would utilize the Port and the immediate land surrounding it. The pilot phase
1-A of the Mundra SEZ of 1300 Ha. would be operational by last quarter of 2005.
With the existing facilities and the planned
developments of the Port and the surrounding region, subject is really and
truly poised at the threshold to take a giant leap into the big league of Port
Infrastructure and services provider and take the country to the forefront of
International Port Infrastructure
Benefits offered by the SEZ
The Government of India through the SEZ Policy has made
available a basket of Incentives, Exemptions, Concessions and Privileges (IECP)
to the SEZ Developers and the SEZ Units. The benefits available to the
Developer and Unit under the SEZ Policy, essentially translate into :
· Reduced Cost of Infrastructure
· Reduced Cost of Utilities
· Reduced Cost of Raw Material
· Reduced Cost of Capital
· Reduced Cost of Manpower
· Operational Ease
PRESS RELEASE:
Publication: The Times of India
Ahmedabad,2007 November 16: 1st Amdavadi billionaire!
TIMES NEWS NETWORK
Ahmedabad: Here’s yet another reason for mega-city Amdavad to uncork the bubbly.
For, Amdavadi business tycoon — Adani group chairman Gautam Adani — has made it
to the exclusive billionaire club of Forbes 40 richest Indians.
The 45-year-old Adani has made his debut on the Forbes richie list at
the 13th spot with a personal wealth of $6.7 billion and is the first Amdavadi
to join the Gujarati billionaires like the Ambani brothers Mukesh and Anil,
Wipro’s Azim Premji, Suzlon group’s Tulti Tanti, Kotak group’s Uday Kotak on
the list.
Remarkably, Adani is the only Gujarati baron to have powered his way to the
list sitting in Ahmedabad, instead of Mumbai.
A school dropout, who quit in class X, Adani’s rags to riches story is
the stuff dreams are made of. It was scripted in Ahmedabad and began from the
Seth ni Pol in the walled city’s Ratanpole area.
One of eight children of a cloth trader who migrated from the dusty
north Gujarat town of Tharad, Adani started out sorting diamonds in a Mumbai
firm at the age of 16 and today lords over a multi-crore business empire
spanning commodity trading, ports, SEZs, power, shipping, edible oil, realty
and agri business.
Adani, who was vacationing in Thailand with his family, told TOI that it
was not money but the rush of taking risks that had powered his meteoric rise.
“Money is not the driving force, it is just a side effect of my quest to build
and create something that others only just dream about,” he said.
Adani, who confesses to being inspired by legendary wealth creator
Dhirubhai Ambani, has seen his personal wealth zoom in just 13 years from just
Rs 2770.000 millions in November 1994 to Rs 298240.000 millions based on
today’s market capitalisation of his holdings in Adani Enterprises and in the
yet unlisted Mundra Port & Special Economic Zone Ltd.
His wealth is slated to soar higher once MPSEZ lists on the bourses
around November 29, 2007, and could well hit the Rs 500000.000 millions mark.
The pioneering tycoon has many firsts to his credit like being the first
Gujarat-based baron to have acquired his own private jet as early as 2005,
building India’s first SEZ and striking the country’s largest realty deal of
over Rs 18000.000 millions for a plot of BKC land in Mumbai last year.
THE MIDAS TOUCH
From Trading To Infrastructure, This Newest Billionaire On The Block Has
Done It All Right Here In Ahmedabad. TOI Takes You Through His Remarkable
Journey
Ahmedabad: The story of Ahmedabad’s first billionaire is a classic
ragsto-riches story. Almost the stuff that the dizzying ascent of yet another
legendary Gujarati wealth creator — Dhirubhai Ambani — is made of.
From sorting diamonds to running a small-time trading firm in the ‘80s —
Adani Agency — to the building ports and SEZs and now heading the biggest
business empire in Gujarat, Adani group chairman Gautam Adani has done it all.
For like Ambani, he’s always dreamt big, aimed for the stars and managed
to conquer them as well, against all odds.
That too in just a short span of around 20 years when he first plunged
into trading with Adani Agency in the mid-’80s importing plastic polymers.
Today with a personal wealth of $6.7 billion, the street-smart Adani
lords over a huge business empire spanning commodity trading, ports, SEZs,
power, shipping, edible oil, realty and agri business.
Adani’s meteoric rise over the past two decade or so has seen him not
just zoom from a Bajaj Scooter in the mideighties to his own private jet in
2005, but also set and break several records.
The most recent one being the record busting Rs 2070000.000 millions
that his Mundra Port & SEZ Ltd initial public offering mopped up in the
first week of November, making Rs 17000.000 millions IPO the top-most grosser
in the Indian capital markets ahead of other big ticket IPOs like DLF, Reliance
Petroleum and PowerGrid Corporation.
He also created history last year when he made his debut into realty
with the country’s largest land deal worth over a whopping Rs 18000.000
millions in Mumbai’s Bandra-Kurla Complex.
But pioneering ventures and setting records has now become a way of life
for this tycoon, who was the first Gujarat-based baron to picked up second
private jet in April 2007.
But things were not always so hunky and dory. Adani’s rags to riches
story began in the narrow bylanes of Ahmedabad’s walled city area of Ratanpole
in Sethni Pol in 1962 when Gautam was born to cloth trader Shantilal Adani and
Shantaben Adani, who had migrated to Ahmedabad from the dusty North Gujarat
town Tharad in search of livelihood. One of the eight children, Adani dropped
out of school at the age of 15 after he completed his class 10 and headed for
the city of dreams — Mumbai. Confessing that the streets of Ahmedabad and
Mumbai were his classrooms and Dhirubhai his inspiration, Adani credits his
success to his risktaking ability. “Dhirubhai was my role model because he had
the ability to dare to think big and take risks. I did not want to join my
father’s business but wanted to create something different.”
Adani remembers his journey from Ahmedabad to his first job as a sorter
in a diamond trading firm of Mahendra Brothers in Mumbai. He came to Ahmedabad
in early 80’s.
“I boarded an unreserved compartment of Gujarat Mail from Ahmedabad to Mumbai
with just a few hundred rupees in my pocket. I worked with diamond trading firm
for two years after which I made my first Rs 0.100 million from my own diamond
brokerage outfit at the age of 18 at Zaveri Bazaar in Mumbai,” remnisces the
simple, god-fearing Gujarati businessman, who still loves his plate of ‘sev
mamra’ and simple vegetarian food.
The only acquisition, this billionaire misses is a proper education.
“The only thing I regret is having left my studies at 15 though I was a topper
in my class. Then I was in too much of a hurry to conquer the world and did not
realise the importance of good education.” Not content with building companies,
Adani is now gearing up to literally bring the seat of US power — the Capitol
building — to his Rs 50000.000 millions township project Shantigram where he is
pumping in Rs 5000.000 millions in setting up a replica of the famous domed
building. No prizes for guessing where the ambitious billionaire’s office will
be located — of course in the Oval office right at the centre of the building!
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.39.92 |
|
UK Pound |
1 |
Rs.79.31 |
|
Euro |
1 |
Rs.60.63 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
71 |
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 |
|