MIRA
INFORM REPORT
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Report Date : |
08.12.2007 |
IDENTIFICATION
DETAILS
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Name : |
AVAYA GLOBAL CONNECT LIMITED |
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Formerly Known As : |
TATA TELECOM LIMITED |
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Registered Office : |
72, Kalpataru Synergy, Opposite Grand Hyatt, Vakola, Santacruz (East), Mumbai-400055, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
19.08.1986 |
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Com. Reg. No.: |
11-40652 |
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CIN No.: [Company
Identification No.] |
L32200MH1986PLC040652 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
AHMT00385A |
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PAN No.: [Permanent
Account No.] |
AAACT3992M |
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Legal Form : |
Public Limited Liability Company. Its shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing of EPABX, Transmission Equipments, Telephone Instruments, Answering Machines and Cordless Telephones. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 7000000 |
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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 company of Tata and Avaya Inc., USA. Available information indicates high financial responsibility of the company. The company's profitability is improving. Payments are correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
72, Kalpataru Synergy, Opposite Grand Hyatt, Vakola, Santacruz (East), Mumbai-400055, Maharashtra, India |
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Tel. No.: |
91 - 22 – 24930492/24930602/26925727 / 26925732 /26925728 /2692 5729 |
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Fax No.: |
91 - 22 – 26925730/24930644 |
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E-Mail : |
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Website : |
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Regional Offices : |
Located at: v Bangalore, Karnataka v Chennai, Tamilnadu v Delhi v Kolkata, West Bengal v Mumbai, Maharashtra v Pune, Maharashtra |
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Corporate Office : |
DLF Square, II Floor, M-Block, Jacaranda Marg, DLF City, Phase II, Gurgaon - 122 002, Haryana, India |
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Factory 1 : |
E-1/1, Gandhinagar Electronics Estate, Gandhinagar - 382 044, Gujarat, India |
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Factory 2: |
Matulya Centre, Senapati Bapat Marg, Lower Parel (West), Mumbai – 400
013, Maharashtra, India |
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Branches and Service Centres : |
Located At:
Ahmedabad, Allahabad, Ambala, Aurangabad, Baroda, Bhatinda, Bhubaneshwar, Bilaspur, Bhopal, Chandigarh, Cochin, Coimbatore, Duliajan, Goa, Guwahati, Hyderabad, Indore, Jaipur, Jabalpur, Jammu, Jamshedpur, Jodhpur, Jorhat, Lucknow, Ludhiana, Mumbai, Nagpur, Noida, Patna, Pune, Ranchi, Shillong, Siliguri, Srinagar, Surat, Tenga, Tezpur, Trivandrum Vizag, Lonawala |
DIRECTORS
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Name : |
Mr. Mark Leigh |
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Designation : |
Chairman |
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Name : |
Mr. Niru Mehta |
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Designation : |
Vice-Chairman & Managing Director |
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Date of Appointment
: |
01.11.2004 |
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Name : |
Mr. K. A. Chaukar |
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Designation : |
Director Resigned w.e.f. 04.08.2004 |
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Name : |
Mr. S. Ramakrishnan |
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Designation : |
Director |
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Date of
Birth/Age : |
57 years |
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Qualification
: |
B. Tech. (Mechanical) degree from IIT, Madras and a Management degree from IIM Ahmedabad |
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Name : |
Mr. N. Srinath |
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Designation : |
Director Resigned w.e.f. 04.08.04 |
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Name : |
Mr. Pradeep Mallick |
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Designation : |
Director |
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Name : |
Mr. C. B. Bhave |
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Designation : |
Director |
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Name : |
Mr. Peter Kwan |
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Designation : |
Director Resigned w.e.f. 22.04.05 |
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Name : |
Mr. David P. Johnson |
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Designation : |
Director |
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Date of
Birth/Age : |
46 years |
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Qualification
: |
Bachelor’s degree in Engineering from Worcester Polytechnic Institute |
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Date of
Appointment : |
04.08.2004 |
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Name : |
Mr. Francis M. Scricco |
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Designation : |
Director Resigned w.e.f. 16.07.2005 |
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Date of Appointment : |
04.08.04 |
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Name : |
Mr. Amarnath K. Pai |
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Designation : |
Director |
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Date of
Appointment : |
04.08.2004 |
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Name : |
Mr. Ravi Sethi |
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Designation : |
Director |
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Date of
Birth/Age : |
58 years |
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Qualification
: |
B. Tech. Degree from IIT, Kanpur and Ph.D. from Princeton University, Princeton, New Jersey |
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Date of
Appointment : |
26.07.2005 |
KEY EXECUTIVES
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Name : |
Mr. Vishal Kohli |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Category |
No. of Shares |
Percentage of
Holding |
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Promoters |
8415988 |
59.13% |
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Public Financial Institutions and Banks |
194633 |
1.37% |
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Mutual Funds |
1599749 |
11.24% |
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Bodies Corporate |
612894 |
4.31% |
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Resident Individuals |
2174972 |
15.28% |
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FII & OCBs |
1160321 |
8.15% |
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Non-Resident Individuals |
53342 |
0.37% |
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State Government |
21333 |
0.15% |
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TOTAL |
14233232 |
100.00% |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of EPABX, Transmission Equipments, Telephone Instruments, Answering Machines and Cordless Telephones. |
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Imports : |
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Countries : |
Europe and Far East |
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Terms : |
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Purchasing : |
L/C, D/A and D/P |
PRODUCTION STATUS
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Class of Goods |
Unit |
Installed Capacity - on single shift basis |
Actual Production |
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EPABX |
No. of ports |
250000 |
198,294 |
GENERAL
INFORMATION
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Suppliers : |
v Mitsubishi Corporation v Generad Inc. v Hewlett Packard Asia Limited |
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No. of Employees : |
542 |
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Bankers : |
v Bank of India, Mumbai, Maharashtra v Credit Agricole Indosuez, Mumbai, Maharashtra v Centurion Bank Limited v IDBI Bank Limited v Caylon Bank |
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Facilities : |
Notes: 1. Cash credit from banks are secured
by hypothecation of stocks and book debts, both present and future and by a
second charge on a pari-passu basis on certain immovable properties, both
present and future. 2. Secured by hypothecation of assets purchased under finance lease arrangements. |
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Banking Relations
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Good |
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Auditors : |
Lovelock & Lewes, Chartered Accountants |
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Ultimate holding Company: |
Avaya Inc. USA through its 100% subsidiaries- Ř Avaya International, LLC, USA Ř Avaya Mauritius Limited |
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Subsidiaries : |
Global Connect Australia Pty Limited |
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Fellow Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital (as on 31.03.2005):-
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No. of Shares |
Type |
Value |
Amount |
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25000000 |
Equity Shares |
Rs. 10/- each |
Rs. 250.000
millions |
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1000000 |
Cumulative
Redeemable Preference Shares |
Rs. 100/- each |
Rs. 100.000
millions |
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TOTAL |
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Rs.350.000 millions |
Issued, Subscribed
& Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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14233232 |
Equity Shares |
Rs. 10/- each |
Rs. 142.332
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS
FUNDS |
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1] Share Capital |
142.300 |
142.332 |
142.300 |
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2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves &
Surplus |
1630.600 |
1365.156 |
1189.100 |
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4] (Accumulated
Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
1772.900 |
1507.488 |
1331.400 |
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LOAN FUNDS |
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1] Secured Loans |
02.500 |
6.496 |
12.100 |
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2] Unsecured
Loans |
07.400 |
13.524 |
229.600 |
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TOTAL BORROWING
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09.900 |
20.020 |
241.700 |
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DEFERRED TAX
LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL
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1782.800 |
1527.508 |
1573.100 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
292.300 |
250.298 |
295.800 |
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Capital work-in-progress
|
17.300 |
7.184 |
1.100 |
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INVESTMENT
|
90.900 |
90.888 |
0.900 |
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DEFERREX TAX ASSETS
|
95.100 |
66.595 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES
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Inventories
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1064.100
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1062.563
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372.400 |
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Sundry Debtors
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1125.500
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1026.532
|
965.400 |
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Cash & Bank Balances
|
924.300
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1015.667
|
871.700 |
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Loans & Advances
|
254.300
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167.734
|
739.300 |
Total Current Assets
|
3368.200
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3272.496
|
2948.800 |
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
1867.200
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1859.603
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1127.000 |
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Provisions
|
213.800
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300.350
|
546.500 |
Total Current Liabilities
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2081.000
|
2159.953
|
1673.500 |
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Net Current Assets
|
1287.200
|
1112.543
|
1275.300 |
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MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
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TOTAL
|
1782.800 |
1527.508 |
1573.100 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other
income]
|
4537.300 |
3313.414 |
4038.300 |
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Profit/(Loss) Before Tax
|
553.200 |
378.724 |
526.700 |
Provision for Taxation
|
214.500 |
129.510 |
200.000 |
Profit/(Loss) After Tax
|
338.700 |
249.214 |
326.700 |
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Export Value
|
164.200 |
66.662 |
35.436 |
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Import Value
|
2333.800 |
2083.549 |
1753.877 |
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Total Expenditure
|
3984.100 |
2934.690 |
3511.600 |
SUMMARISED RESULTS
|
Year |
30.09.2007 |
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Type |
Full Year |
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Sales
Turnover |
8366.400 |
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Other
Income |
82.900 |
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Total
Income |
8449.300 |
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Total
Expenditure |
7608.900 |
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Operating
Profit |
840.400 |
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Interest |
[53.600] |
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Gross
Profit |
894.000 |
|
Depreciation |
154.700 |
|
Tax |
299.400 |
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Reported
PAT |
476.200 |
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Dividend
(%) |
675.000 |
|
Year |
31.03.2007 |
30.09.2007 |
|
Type |
Full
Year |
Full
Year |
|
Sales
Turnover |
5638.400 |
836.64 |
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Other
Income |
50.300 |
8.29 |
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Total
Income |
5688.700 |
844.93 |
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Total
Expenditure |
5137.300 |
760.89 |
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Operating
Profit |
551.400 |
84.04 |
|
Interest |
[28.900] |
-5.36 |
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Gross
Profit |
580.300 |
89.40 |
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Depreciation |
104.00 |
15.47 |
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Tax |
213.500 |
29.94 |
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Reported
PAT |
317.600 |
47.62 |
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Dividend
(%) |
0.000 |
67.50 |
QUARTERLY RESULTS
|
Year |
30.09.2007 |
30.062007 |
|
Type |
2nd Quarter |
1st
Quarter |
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Sales Turnover |
1335.700 |
1390.500 |
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Other Income |
27.600 |
6.800 |
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Total Income |
1363.300 |
1397.300 |
|
Total Expenditure |
1245.800 |
1225.500 |
|
Operating Profit |
117.500 |
171.800 |
|
Interest |
[12.700 ] |
[11.900 ] |
|
Gross Profit |
130.200 |
183.700 |
|
Depreciation |
25.900 |
25.000 |
|
Tax |
26.900 |
59.000 |
|
Reported PAT |
65.700 |
92.900 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.01 |
0.09 |
0.21 |
|
Long Term Debt
Equity Ratio |
0.01 |
(0.06) |
(0.06) |
|
Current Ratio |
1.60 |
1.53 |
1.54 |
|
TURNOVER RATIOS |
|
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|
Fixed Assets |
6.04 |
5.01 |
6.32 |
|
Inventory |
4.17 |
4.63 |
10.46 |
|
Debtors |
4.12 |
3.33 |
4.25 |
|
Interest Cover
Ratio |
70.14 |
38.49 |
19.61 |
|
Operating Profit
Margin (%) |
15.02 |
14.91 |
16.73 |
|
Profit Before
Interest and Tax Margin (%) |
12.65 |
11.71 |
13.81 |
|
Cash Profit
Margin (%) |
10.01 |
10.71 |
11.05 |
|
Adjusted Net
Profit Margin (%) |
7.64 |
7.51 |
8.13 |
|
Return on Capital
Employed (%) |
33.90 |
25.07 |
38.20 |
|
Return on Net
Worth (%) |
20.65 |
17.56 |
27.13 |
STOCK PRICES
|
Face Value |
Rs. 10.00/- |
|
High |
Rs. 233.95/- |
|
Low |
Rs. 230.00/- |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Subject was
incorporated on 19th August 1986 at Mumbai in Maharashtra having
Company Registration No. 40652.
The company was
incorporated as a private limited company under the Companies Act 1956.
Subsequently the company was converted into a Public Limited Liability Company.
Subject belongs to
Tatas and Avaya, formerly a division of Lucent Technologies, which had its
roots in AT and T. Currently, the Tatas and Avaya holds 25.5% each.
Subject floated a new company, Trans India Network System (TINS), in technical
and financial collaboration with Lucent Technologies Inc., USA, for the
manufacture of SLC 120 network access systems and MAR systems. Meanwhile Tata
Keltron (TKL), a sick company, was merged with subject with effect from April,
1995. Consequent to the merger of TKL with the company, paid up capital
increased from Rs. 101.8 millions to Rs. 106.0 millions.
In 1996, subject was accredited with ISO 9001 certifications by the STQC
Directorate, Department of Electronics, Government of India, certifying the
design, development, production, installation and servicing of range of
telecommunications equipment comprising of EPABX, Voice Processing Systems,
Transmission Systems and Network Access Systems. Subject had also been awarded
a certificate of registration by the British Standards Institute (BSI), UK, in
this respect.
During the year 2000, the company launched Paradigm Plus with state-of-the-art
features like Virtual Telephony and ISDN; to its popular series of Paradigm
range from OKI. Tata Fone division also introduced new products including
Digital Answering machines and a range of feature phones.
In March 2001, the Board of the company approved a scheme of demerger of its
Tata Fone Division into a separate company. The company, ITel Industries
Private Limited, is promoted by Tata Industries Limited and will become its
100% subsidiary.
The company has won
the Forst and Sullivan Market Engineering Award 2002 for “Market Leadership in
Interaction CRM Market in India”.
The company has also
bagged the Frost and Sullivan Marketing Strategy Award in Enterprise Voice
Equipment Market.
The name of the
company was changed to AVAYA GLOBAL CONNECT LIMITED during October 2004.
BUSINESS
The company is
engaged in manufacturing of EPABX, Transmission Equipments, Telephone
Instruments, Answering Machines and Cordless Telephones.
The company
manufactures EPABX systems and also provides services like software
integration, installation, commissioning and support. The company diversified
into manufacturing multiple access radios and point-to-point digital radios,
supplied to the Indian Railways, DoT, etc. The company also manufactures voice
processing systems, digital paradigm exchanges with the latest features like
ISDN compatibility, ADPCM transcoders, 10 channel digital UHF radios, etc.
The company is also engaged in trading in Telephone Instruments, Cellular Phones, Consoles, Float cum Boost Chargers, Cordless Telephones, Fax Machines, Key Telephone Systems, Answering Machines, Head Phones and Others.
Financial Performance
The Company, for the year
ended March 31, 2006 recorded a gross turnover of Rs. 44.353 millions, as
against Rs. 33.202 millions for the year ended March 31, 2005. The profit
before tax is Rs. 5.532 millions for the year ended March 31, 2006 as against
Rs. 3.788 millions for the previous year. The profit after tax is Rs. 3.387
millions as against Rs. 2.493 millions for the previous year.
Operations
Their Company has been
leveraging its focus on '3C' strategy of Converged Communications, Contact
Centers and Customer Services. The Company has long experience in Voice
Solutions for Enterprises and has built relationships with its Enterprise
customers with this focus. The end-to-end Solutions and large installed
customer base help the Company differentiate its offerings in the highly
competitive market.
The year under
review was the first full year of operation as 'Avaya Global Connect Limited'.
The Company has continued to be the leader in each of the market segments. The
Company embarked upon establishing the new Brand as 'Avaya Global Connect
Limited' and has successfully created its positioning as "India's No. 1
Enterprise Communications Company". The Company continues to focus on
developing more relationship with customers through new initiatives targeted at
ensuring mindshare with the Top CXOs (CEOs/ GIOs / COOs / CTOs / CFOs) through
programs like 'Futurescapes'.
Their Company under
the aegis of Customer Responsiveness initiated "Avaya Global Connect Most
Customer Responsive Company Awards" — the first ever such awards for
Customer Responsiveness in the Industry. These awards were launched in
partnership with The Economic Times, Ernst and Young and A. C. Nielson. The
special CEO Round Table discussions were held over 90 days in 7 cities
involving 54 CEOs in 7 invigorating sessions. The Round Table provides CEO
focus to share insights of Customer Responsiveness. Awards were given away in
December 2005 in Mumbai in the presence of Captains of Indian Corporate World.
The key role in
providing best-in-class services is played by employees. The Company continues
to focus on enhancing skills and developing competencies of the customer facing
employees. The entire technical customer facing 13 RIMBUfil [IIIKBI] employees
went through Avaya Certification to ensure that the Company provides quality
support to its customers throughout the life cycle of the Solutions provided to
them. The number of certifications received in Asia Pacific Region amongst all
Avaya Companies is the highest with over 750 certificates.
In its pursuit for a
deeper penetration of the large customer base, their Company also initiated
focus on Industry Solutions for the Key Verticals. Another development to drive
ownership at functional level within the organization was creation of
'Operations Team' to help create effective and efficient operations.
During the year
under review, Global Connect Australia Pty Limited, the wholly owned subsidiary
of their Company, with its team of highly qualified professionals, established
itself as a dependable Business Partner for Avaya in Australia.
As reported in the
last Annual Report of the Company (2004-05), the Company had applied to the
Central Government under Section 212 (8) of the Companies Act, 1956, for
seeking exemption for attaching to its balance sheet as at March 31,2005, the
documents pertaining to the Subsidiary Company as required under the provisions
of Section 212 of the Act. The Company had got the approval of the Central
Government (Ministry of Company Affairs) for the same subject to the condition
that the annual report for the period 30.09.2005 of the wholly owned subsidiary
namely Global Connect Australia Pty Limited shall be annexed by the holding
company with its own accounts for the period ended 31.03.2006 and shall be
circulated to the shareholders. Accordingly, the Company has annexed the annual
report of Global Connect Australia Pty Limited for the period ended 30.09.2005
with its current annual report.
Business Outlook
India continues to
be amongst the leading countries in Telecommunication growth with CAGR for
fixed and mobile telephony services climbing up towards 30%-35% level. The
tele-density continues to grow rapidly with subscriber base reaching 140
million in March 2006. The growth in Telecom services enables more expansion of
current enterprises as well as setting up of new ones, thereby offering growth
potential for Converged Communications.
The Contact Center
Industry continues to grow steadily with enhanced gamut of services supported
by the Contact Centers. The Industry is also looking at new verticals to expand
their business to grow and this continues to offer opportunities for their
Company.
The Enterprises are
eager to adopt new technologies and applications with Converged Communications.
Some examples are Videoconferencing, Voice Mail; IP based Closed User Group
(IPCUG) and so on.
The Government of
India increased the Foreign Direct Investment (FDI) limit in Telecommunication
Services companies from 49% to 74%. This increase in FDI limit would attract
more Global MNCs to invest in India and offer enhanced services to Indian
subscribers. The private operators will build their focus on high net-worth
enterprises with the new services.
The Contact Center
Industry in India faces competition from other destination countries like
Hungary, Malaysia and Philippines, which may dampen the growth of this
Industry. The limitation in open connectivity for IP Telephony will reduce the
impact of Voice over Internet Protocol (VoIP) deployment in India.
New Products
Their Company continues
to enhance the product portfolio to address the enterprise customers' need for
converged communication services covering Voice, Data and Video Networks and
also Contact Center Solutions.
During the year
under review, their Company launched the following new products and solutions:
· IP Office from Avaya Inc., USA.
· Witness Solution for Performance Optimization.
· Intelligent Communications for Mobility Solutions.
The company has been
accredited with ISO 9001 Certification.
The company's fixed assets of important value
include
·
Leasehold Land,
·
Freehold Land,
·
Buildings,
·
Plant and
Machinery,
·
Electrical
Installation,
·
Computers,
·
Furniture and
Fixtures,
·
Office
Equipments,
·
Assets acquired
on Finance-Lease Vehicles,
·
Technical
Know-how and Vehicles.
CMT REPORT
(Corruption, Money Laundering and Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.39.41 |
|
UK Pound |
1 |
Rs.79.81 |
|
Euro |
1 |
Rs.57.58 |
SCORE and RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
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 and 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 and 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 |
|