MIRA
INFORM REPORT
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Report Date : |
25.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
QUIPO INFRASTRUCTURE EQUIPMENT LIMITED |
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Formerly Known As : |
INDIAN INFRASTRUCTURE EQUIPMENT LIMITED |
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Registered Office : |
D-2 Southern Park Street Place, Saket, New Delhi – 110017 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
03.09.2001 |
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Com. Reg. No.: |
112291 |
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CIN No.: [Company
Identification No.] |
U45500DL2001PLC112291 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELI03113F |
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PAN No.: [Permanent
Account No.] |
AAACI7647C |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Subject is revolves around the financing of
infrastructure, construction and mining equipment, infrastructure project finance
and renewable energy systems. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 8956948 |
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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 having fine track.
Trade relations are fair. General financial position is satisfactory.
Fundamentals are strong and healthy. Payments are reported as per
commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
DIRECTORS
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Name : |
Mr. Sarosh Ghandy |
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Designation : |
Director |
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Address : |
Jubilee Building, 45 Museum Road, Bangalore – 560025, Karnataka, India |
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Date of Birth/Age : |
21.12.1937 |
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Date of Appointment : |
24.05.2004 |
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Name : |
Mr. Sudhir Srivastav |
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Designation : |
Director |
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Address : |
DLF Gatway Towers, 6th Floor, DLF City, Phase – III,
Gurgaon – 122022, Haryana, India |
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Date of Birth/Age : |
19.09.1954 |
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Date of Appointment : |
01.11.1999 |
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Name : |
Mr. P R Swarup |
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Designation : |
Director |
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Address : |
801, 8th Floor, Hemkunt Chambers, Nehru Place, New Delhi –
110019, India |
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Date of Birth/Age : |
24.11.1953 |
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Date of Appointment : |
29.09.2000 |
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Name : |
Mr. Kishore Kumar Mohanty |
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Designation : |
Director |
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Address : |
N/4-181, Nayapalli, Bhubaneshwar, Orissa, India |
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Date of Birth/Age : |
24.11.1953 |
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Date of Appointment : |
04.11.1999 |
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Name : |
Mr. Sunil Kanoria |
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Designation : |
Chairman |
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Address : |
32 Q, New Road, Alipore, Kolkata – 700027, West Bengal, India |
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Date of Birth/Age : |
04.05.1965 |
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Date of Appointment : |
27.07.1999 |
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Name : |
Mr. Jayant B Diwale |
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Designation : |
Director |
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Address : |
602 Kamala Place, Ramdas Peth, Nagpur, Maharashtra, India |
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Date of Birth/Age : |
01.04.1942 |
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Date of Appointment : |
31.08.2002 |
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Name : |
Mr. Daniel I Kaplan |
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Designation : |
Director |
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Address : |
55, Madison Avenue, Morristown 07960, USA |
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Date of Birth/Age : |
18.01.1943 |
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Date of Appointment : |
20.12.2001 |
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Name : |
Mr. P K Bhattacharjee |
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Designation : |
Director |
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Address : |
BG 149, Salt Lake City, Sector – II, Kolkata – 700091, West Bengal,
India |
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Date of Birth/Age : |
18.01.1943 |
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Date of Appointment : |
04.11.1999 |
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Name : |
Mr. Arne Georgzen |
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Designation : |
Director |
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Address : |
Valloxvagen 40 A, SE – 74142, Knivsta, Sweden |
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Date of Birth/Age : |
10.10.1943 |
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Date of Appointment : |
28.10.2004 |
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Name : |
Mr. Deepak Sahay |
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Designation : |
Alternate Director |
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Address : |
45, Friends Colony East, Flat No.2, New Delhi – 110065, India |
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Date of Birth/Age : |
04.01.1950 |
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Date of Appointment : |
24.10.2007 |
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Email : |
KEY EXECUTIVES
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Name : |
Mr. Nitesh Kumar Sinha |
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Designation : |
Company Secretary |
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Address : |
595, Mayur Vihar, Delhi – 110094, India |
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Date of Birth/Age : |
16.12.1976 |
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Date of Appointment : |
01.04.2004 |
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Name : |
Mr. Neeru Bhalla |
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Designation : |
Company Secretary |
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Address : |
367 1st Floor, Indraprastha Colony, Sector 30-33, Faridabad
– 122001, Haryana, India |
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Date of Birth/Age : |
22.04.1973 |
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Date of Appointment : |
16.09.2006 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 30.09.2005)
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Names of Shareholders |
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No. of Shares |
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Mr. Sunil Kanoria |
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499300 |
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SREI Infrastructure Finance Limited |
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12500000 |
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Milan Commercial (Private) Limited |
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3250500 |
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Development Infrastructure Investor Limited |
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500000 |
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International Finance Corporation |
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10000000 |
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Nederaldse Financierings Maatschappi Voor Ontwikklings Landen NV |
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10000000 |
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Hemang Foundation |
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3500000 |
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Opulent Venture Capital Trust |
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6250000 |
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Mr. Jagnani Rajendra K. |
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100 |
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Mr. K K Mohanty |
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100 |
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Ingersoll – Rand (India) Limited |
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1500000 |
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Aktiebolag International Swedfund |
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10000000 |
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Mr. Daniel I Kaplan |
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10000 |
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Mr. Sunil Kanoria |
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500500 |
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Aktiebolag International Swedfund |
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3500000 |
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Capital Trust Opulent Venture |
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3500000 |
(As on 31.03.2007)
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Category |
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Percentage |
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Venture Capital |
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20.10 |
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Foreign Holdings (FIIs, FCs, FFIs, NRIs, OCB or Others) |
|
58.82 |
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Bodies Corporate (not mentioned above) |
|
20.47 |
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Directors or relatives of directors |
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0.61 |
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Total |
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100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is revolves around the financing of
infrastructure, construction and mining equipment, infrastructure project
finance and renewable energy systems. |
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Products : |
Infrastructure Equipment Services |
GENERAL
INFORMATION
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Bankers : |
9th Floor, Nehru Centre, Discovery of India, Dr, Annie
Besant Road, Worli, Mumbai – 400018, Maharashtra, India
Connaught Circus,
New Delhi, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
S. S. Kothari Mehta and Company Chartered Accountant |
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Address : |
146-149, Tribhuvan Complex Ishwar Nagar, New Delhi – 110065, India |
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Subsidiaries : |
Quippo Oil and Gas
Infrastructure Limited U11120DL2005PLC138226 Quippo Telecom Infrastructure
Limited U64203DL2005PLC138225 |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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100000000 |
Equity Shares |
Rs.10/- each |
Rs.1000.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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83086922 |
Equity Shares |
Rs.10/- each |
Rs.830.869
Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
830.869 |
580.100 |
580.100 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1408.368 |
140.337 |
96.371 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2239.237 |
720.437 |
676.471 |
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LOAN FUNDS |
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1] Secured Loans |
1071.552 |
1011.480 |
655.791 |
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2] Unsecured Loans |
250.532 |
75.923 |
0.000 |
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TOTAL BORROWING |
1322.084 |
1087.403 |
655.791 |
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DEFERRED TAX LIABILITIES |
26.366 |
27.381 |
7.387 |
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Deferred Payment Liability |
314.014 |
532.510 |
263.178 |
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TOTAL |
3901.701 |
2367.731 |
1602.827 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2031.601 |
1990.712 |
1190.147 |
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Capital work-in-progress |
278.279 |
58.624 |
30.517 |
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INVESTMENT |
1186.688 |
76.767 |
50.012 |
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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 |
6.623
|
120.869 |
173.729 |
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Sundry Debtors |
223.584
|
174.588 |
130.399 |
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Cash & Bank Balances |
39.710
|
6.663 |
43.008 |
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Other Current Assets |
0.786
|
0.040 |
0.407 |
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Loans & Advances |
298.702
|
62.806 |
154.395 |
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Total
Current Assets |
569.405
|
364.966 |
501.938 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
152.718
|
111.596 |
165.647 |
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Provisions |
11.611
|
11.828 |
4.255 |
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Total
Current Liabilities |
164.329
|
123.424 |
169.902 |
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Net Current Assets |
405.076
|
241.542 |
332.036 |
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MISCELLANEOUS EXPENSES |
0.057 |
0.086 |
0.115 |
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TOTAL |
3901.701 |
2367.731 |
1602.827 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
914.169 |
893.117 |
467.801 |
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Other Income |
0.522 |
0.450 |
1.116 |
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Total Income |
914.691 |
893.567 |
468.917 |
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Profit/(Loss) Before Tax |
(29.550) |
71.043 |
39.465 |
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Provision for Taxation |
1.015 |
27.077 |
0.000 |
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Profit/(Loss) After Tax |
(28.535) |
43.966 |
39.465 |
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Expenditures : |
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Consumption of stores and spares parts |
330.721 |
316.170 |
0.000 |
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Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
0.000 |
|
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Salaries, Wages, Bonus, etc. |
50.343 |
46.493 |
28.257 |
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Managerial Remuneration |
73.706 |
61.171 |
2.688 |
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Payment to Auditors |
0.505 |
0.384 |
0.345 |
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Interest |
186.742 |
130.008 |
30.608 |
|
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Insurance Expenses |
0.000 |
0.000 |
8.878 |
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Power & Fuel |
0.000 |
0.000 |
4.915 |
|
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Depreciation & Amortization |
302.224 |
268.298 |
117.519 |
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Other Expenditure |
0.000 |
0.000 |
236.242 |
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Total Expenditure |
944.241 |
822.524 |
429.452 |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total
Income |
(%) |
(3.12)
|
4.92 |
8.42 |
|
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Net Profit Margin (PBT/Sales) |
(%) |
(3.23)
|
7.95 |
8.44 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(1.14)
|
3.01 |
2.33 |
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Return on Investment (ROI) (PBT/Networth) |
|
(0.01)
|
0.10 |
0.06 |
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Debt Equity Ratio (Total Liability/Networth) |
|
0.66
|
1.68 |
1.22 |
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Current Ratio (Current Asset/Current Liability) |
|
3.46
|
2.96 |
2.95 |
LOCAL AGENCY
FURTHER INFORMATION
Form 8:
|
Corporate
identity number (CIN) Foreign company registration number |
U45500DL2001PLC112291 |
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Name of the
Company |
QUIPO INFRASTRUCTURE EQUIPMENT LIMITED |
|
Address |
D-2 Southern Park Street Place, Saket, New Delhi – 110017, India |
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This form is for |
Creation of
Charge |
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Type of Charge |
Movable Property
(not being pledge) |
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Particulars of
the charge holder |
Yes Bank Limited 9th Floor, Nehru Centre, Discovery of India, Dr, Annie
Besant Road, Worli, Mumbai – 400018, Maharashtra, India CIN : L65190MH2003PLC143249 |
|
Nature or
description of the instrument(s) creating or modifying the charge |
Deed of
Hypothecation Dated 19.11.2007 |
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Date of the
instrument creating or modifying the charge |
19.11.2007 |
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Amount secured by
the charge |
Rs.340.000
Millions |
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Brief particulars
of the principal terms and conditions and extent and operation of the charge |
Rate of
Interests: Term Loan: At yes
Bank Prime Lending Rate minus 3.70% p.a., Effective rate of Interests is
11.80% p.a. Terms of
Repayment: Repayment in 6.50
year in 22 equal quarterly installments after moratorium of 1 year. Margin: Not Applicable Extent and
operation of the charge: Exclusive charge
over the equipment acquired/ Purchases by the borrower pursuant to the
grant of the facilities by the
lender, both present and future whether lying or stored in or about or shall
hereinafter From time to time
during of the security of these present be brought in to or upon or be stored
or be in or about of the borrower factories, premises and godowns situate
anywhere |
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Short particulars
of the property charged (including location of the property) |
Exclusive charge
over the equipment acquired/ Purchases by the borrower pursuant to the
grant of the facilities by the Lender |
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Particular of the
present modification |
NA |
|
Name of the company |
INDIAN INFRASTRUCTURE EQUIPMENT LIMITED |
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Presented By |
Company and
Bharat Overseas Bank Limited |
|
1) Date and description of instrument creating the change |
Agreement for
hypothecation of machineries as collateral dated 24.12.2003 and Registered on
07.01.2004 |
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2) Amount secured by the charge/amount owing on the securities of charge |
Rs.20.000
Millions |
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation by
way of first charge of the following equipment: 1 No. Motor
Grader G 140 Fiat Hatachi (SI No.10Y00346) 1 No. Volve Motor
Grader (SI No.X033976X) 2 Nos. IR
Compressor P-300 (SI Nos. 2003706017 and 2003706016) |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interests
@ 13% p.a. or as may be determined by the Bank from time to time. |
|
5) Name and Address and description of the person entitled to the charge. |
Bharat Overseas
Bank Limited Connaught Circus,
New Delhi |
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6) Date and brief description of instrument modifying the charge |
NA |
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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. |
NA |
Profile:
Subject has been sponsored by SREI, one of the non-banking
financial institutions in India. It started its operations in early 2002.
Having identified India's infrastructure sector as its principal growth area,
SREI has built a unique business model, which revolves around the financing of
infrastructure, construction and mining equipment, infrastructure project
finance and renewable energy systems.
Subject is the country's largest infrastructure equipment rental company,
servicing the high growth verticals of Construction, Mining, Oil and Gas,
Telecom and Energy. In addition to having a state-of-the-art equipment/asset
bank for construction and other infrastructure sectors, subject has a large
pool of fully trained operations and maintenance personnel spread across
various sites in India.
Other emerging businesses of subject include a JV with Henry Butcher, a company
that provides plant and machinery valuation and conducts equipment auctions.
Another JV of subject is with Larsen and Turbo and others for its operations in
the southern states of India. It has an energy rental business using small
gas-based generators. These gas-based generators offer a cleaner and cheaper
option for a combined power and heating or chilling solution. Subject recently
has also forayed into the mining sector with huge mining projects announced in
coal, iron ore and bauxite fields as subject Mining Division.
Presently the Total Assets of subject are approx Rs.5000.000 Millions (USD 125
Million) and Revenues generated are Rs. 1300.000 Millions (USD 32 Million).
Divisions:
Construction
Equipment Rental
- Rents
earthmoving, concreting and general construction equipment on daily,
weekly, monthly and yearly basis
- Provides
trained, qualified and experienced operators with the equipment
- Provides
onsite repairs and maintenance
- Advice on
equipment suitability based on applications.
- Bid support
Provides OEM and quality in-house maintenance of equipment
- Supported by
in-house genuine spare parts inventories to ensure minimum maintenance
& down time
Energy Rental
- Rents
environmentally friendly gas based power solutions on short-medium terms
- Each modular
unit is of 600 KW - 1300 KW housed in rugged containers
- Provides
power plants up to 10 MWs combining multiple units
- Comprehensive
solutions including engineering management, maintenance, operators and
spares/ consumables
- Heat recovery
and chilling solutions
Quippo Mining
QUIPPO Mining Division is aimed at bridging the needs of the
mining industry, be it coal or other mineral investments in the country.
Potential areas of interest and cooperation include:
- Mining
Equipment rental
- Mining
systems and technology platform
- Mining JV for
execution of large contracts
- Mine Develop
and Operate (MDO
- Coal or
Hydropower project development
Quippo Oil and Gas Infrastructure Limited
- Provides state of the art drilling equipment
- Provides trained, qualified and experienced operators
- Provides advisory services for equipment suitability &
equipment purchases
- Provides banking facility for idle equipment
- Current portfolio includes 3 state-of-the-art rigs
Quippo Telecom Infrastructure Limited
- Provides complete "Plug-n-Play" service for telecom
service operators
- Holding IP-1 License for Passive Infrastructure Service
- Only Indian company with successful on-ground experience in tower
rental & co-location
- Upgraded world's 1st ever multi technology, multi shared tower,
used by six operators
- Has 600 projects on air along with contracts with Bharti, Idea,
Spice
Press Release:
Quipo brand rechristened as
Quippo - Based on rationale, “Equipped
to Perform”
New
Delhi, February 2008:
The Quipo group of companies, a global transnational
corporation, which boasts of an asset base of over 200 MN USD and with a
presence in more than seven diverse business verticals, today unveiled its new
group corporate identity and will now be known as the Quippo Group. The
Conglomerate is on course to trebling its asset base to US$ 1 bn by 2012.
Quippo expresses “Equipped to Perform” as the rationale. The
Quippo logo is modern and signifies continuous forward movement. It symbolizes
the organization as a powerhouse of progress, impelled by its fundamentals of
customer partnership, respect for people, integrity; stakeholders value
enhancement, professional entrepreneurship & passion for excellence.
Mr. Sunil Kanoria, VCMD, Quippo Group, said, “Consolidation involves coming together as a
group, leveraging on individual and collective strengths and working together.
The group structure and formalizing it with a group identity is a step towards
realizing our defined growth path.” He explained, “As a new and emergent global
transnational, Quippo is committed towards world class systems and processes
and a 360-degree reputation as an Indian employer brand.”
Mr. Ujval Aurora, Head-Corporate Communications, Quippo
Group, said, “As of the 1st Feb 2008, the group marks an asset base of over 200
MN USD. As the communications strategist, my team conceptualized the entire
process and it was exciting to direct this strategic initiative. The new identity
reflects the new and emergent global India and a recognized leading employer
brand. Quippo is now on course to become one of India’s “most admired
nationals”.
He further added, “The new logo was strategically formulated
to present a fresh, new and unique presence, and in creating the look we
considered our history, culture and future growth. We want to leverage
the brand further and communicate to our stakeholders.”
Re-living the entire branding experience, Mr. Aurora said,
“Adoption of a group identity for any organization is a challenging task and it
has been an exciting and a rejuvenating experience .We will be unveiling a
print campaign from this month (February).”
The Group, the identity and the logo were formulated after a
couple of months’ work of selecting and implementing a new brand identity.
Following which Quippo Group had called for a creative pitch.
The new logo and brand was conceptualized by Fusion
Advertising after an exhaustive research. The company also took inputs from
various stakeholders at several focus group sessions held earlier this year.
Global best practices and processes were followed in the group identity
process.
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.40.34 |
|
UK Pound |
1 |
Rs.79.81 |
|
Euro |
1 |
Rs.62.01 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
63 |
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 |
|