MIRA
INFORM REPORT
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Report Date : |
06.02.2007 |
IDENTIFICATION
DETAILS
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Name : |
BARISTA
COFFEE COMPANY LIMITED |
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Registered Office : |
Unit No 2, 4th
Floor, D-2, Southern Park, Saket, New Delhi – 110030, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
28.09.1999 |
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Com. Reg. No.: |
55-101732 |
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CIN No.: [Company
Identification No.] |
L99999DL19999PLC101732 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELJ03056E |
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PAN No.: [Permanent
Account No.] |
AABCB5798A |
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Legal Form : |
A
Closely Held Public Limited Liability Company |
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Line of Business : |
Subject is engaged in retailing fine coffee through its express bars chain under the brand of ‘BARISTA COFFEE’ in India. |
RATING & COMMENTS
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MIRA’s Rating : |
Ca |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject
is an old and established company having moderate track. Company’s
profitability is under severe pressure. It has accumulated losses. Payments
are reported as slow and delayed. The
company can be considered for any business dealings on fully safe and secured
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Unit No 2, 4th
Floor, D-2, Southern Park, Saket, New Delhi – 110030, India |
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Tel. No.: |
91-11-65515160-65 |
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Fax No.: |
91-11-26567046 |
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E-Mail : |
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Website : |
DIRECTORS
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Name
: |
Mr
Mohamed Hamid Ashraff |
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Designation
: |
Director |
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Address
: |
Flat G
and H, Raheja Terrace, Aga Ali Abbas Road, Bangalore – 560042, Karnataka,
India |
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Date
of Birth/Age : |
02.01.1945 |
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Date
of Appointment |
16.10.2003 |
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Name
: |
Mr
Thinniam Venkataraman Krishnamurthy |
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Designation
: |
Director |
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Address
: |
2/14,
Saraswathi Building, 2nd Styreet, Luz Avenue, Chennai- 600004,
Tamilnadu, India |
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Date
of Birth/Age : |
14.09.1949 |
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Date
of Appointment |
09.04.2004 |
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Name
: |
Mr
Coimbatore Ramanathan Sitaram |
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Designation
: |
Director |
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Address
: |
5,
Subarayar Avenue, Abhiramapuram, Chennai – 600018, Tamil nadu, India |
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Date
of Birth/Age : |
04.09.1948 |
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Date
of Appointment |
09.04.2004 |
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Name
: |
Mr
Sandip Dang |
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Designation
: |
A-111,
Hamilton Court, DLF City, Phase-IV, Gurgaon, Haryana. |
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Address
: |
Director |
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Date
of Birth/Age : |
02.08.1963 |
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Date
of Appointment |
01.08.2004 |
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Name
: |
Mr V
Srinivasan |
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Designation
: |
Director |
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Address
: |
Flat
No 2B, KG Central Court No 9-11, Jagadambal Street, T Nagar, Chennai –
600017, Maharashtra, India |
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Date
of Birth/Age : |
15.05.1957 |
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Date
of Appointment |
06.12.2004 |
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Name
: |
Mr T V
Vasudev |
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Designation
: |
Director |
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Address
: |
60,
Sturdee Road North, #04-02, Sturdee View, Singapore, Singapore. |
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Date
of Birth/Age : |
26.06.1948 |
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Date
of Appointment |
06.12.2004 |
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Name : |
Mr
Jayant Kochar |
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Designation : |
Director |
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Name : |
Mr
Ranjit Chopra |
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Designation : |
Director |
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Name : |
Mrs
Anubha Dey |
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Designation : |
Director |
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Name : |
Mr
Partha Dattagupta |
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Designation : |
Whole-Time
Director |
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Address : |
C-206,
First Floor, Greater Kailash –I, New Delhi – 110048, India |
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Date of Birth/Age : |
17.05.1963 |
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Date of Appointment : |
31.11.2006 |
KEY EXECUTIVES
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Name
: |
Mr
Jitendra Jagota |
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Designation
: |
Secretary |
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Address
: |
396 a,
Pocket II, Mayur Vihar, Delhi – 110091, India |
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Date
of Birth/Age : |
16.01.1972 |
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Date
of Appointment |
11.02.2004 |
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Name
: |
Mr
Rajesh Malhotra |
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Designation
: |
Manager |
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Address
: |
H-75,
Ground Floor, Residency Green Wood City, Gurgaon, Haryana |
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Date
of Birth/Age : |
29.03.1967 |
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Date
of Appointment |
18.01.2005 |
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Name
: |
Mr
Kumar Aniket |
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Designation
: |
Secretary |
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Address
: |
F-70,
West Patel Nagar, Delhi – 110008 |
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Date
of Birth/Age : |
04.12.1974 |
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Date
of Appointment |
14.07.2005 |
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Name
: |
Mr
Manoj Bhargava |
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Designation
: |
Secretary |
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Address
: |
K-24,
1st Floor, West Patel Nagar, New Delhi – 110008, India |
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Date
of Birth/Age : |
29.10.1975 |
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Date
of Appointment |
01.07.2006 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Mr C R
Sitaraman |
200 |
0.00 |
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Mr
Amit Kumar Gulati |
10000 |
0.06 |
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Mr
Jayant Kochar |
1000 |
0.01 |
|
Mr T V
Krishnamurthy |
109 |
0.00 |
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Ms
Monika Khana Gulati |
877 |
0.01 |
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Ms
Payal Vaswani |
5439 |
0.03 |
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Mr
Rohit Batra |
100 |
0.00 |
|
Sterling
Infotech Limited |
16475036 |
99.90 |
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Total |
16492761 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in retailing fine coffee through its express bars chain under the brand of ‘BARISTA COFFEE’ in India. |
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Terms : |
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Selling : |
Cash |
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Purchasing : |
Cash |
GENERAL
INFORMATION
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Customers : |
Retailers |
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No. of Employees : |
150
person |
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Bankers : |
1] ING
Vysya Bank Limited 22, M G Road, Bangalore – 560001 and branch Office at 185, Anna Salai,
Chennai – 600006 2] State Bank of India
Parliament Street, New Delhi – 110 001 |
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Banking Relations : |
Satisfactory |
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Auditors : |
S R
Batliboi and Associates Chartered
Accountants |
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Tel. No.: |
B-26,
Qutab Institution Area, New Delhi – 110016, India |
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Mobile No.: |
91-11-26611004-09
/ 91-11-26852034 |
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Fax No.: |
91-11-26611012-13 |
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E-Mail : |
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Subsidiaries : |
Barista
Coffe (Mauritius) Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
1,70,00,000 |
Equity
Shares |
Rs 10/- each |
Rs 170.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
1,64,92,761 |
Equity
Shares |
Rs 10/- each |
Rs 164.927 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
|
164.927 |
164.927 |
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2] Share Application Money |
|
0.000 |
0.000 |
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3] Reserves & Surplus |
|
265.821 |
265.821 |
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4] (Accumulated Losses) |
|
(788.629) |
(592.424) |
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NETWORTH |
|
(357.881) |
(161.676) |
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LOAN FUNDS |
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1] Secured Loans |
|
221.103 |
236.510 |
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2] Unsecured Loans |
|
315.474 |
130.769 |
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TOTAL BORROWING |
|
536.577 |
367.279 |
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DEFERRED TAX LIABILITIES |
|
0.000 |
0.000 |
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TOTAL |
|
178.696 |
205.603 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
173.550 |
237.145 |
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Capital work-in-progress |
|
1.209 |
7.897 |
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INVESTMENT |
|
7.649 |
7.649 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
10.392 |
9.853 |
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Sundry Debtors |
|
4.421 |
2.296 |
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Cash & Bank Balances |
|
28.444 |
24.663 |
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Other Current Assets |
|
0.392 |
0.096 |
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Loans & Advances |
|
55.117 |
53.784 |
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Total Current Assets |
|
98.766 |
90.692 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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|
|
|
Current Liabilities |
|
100.777 |
131.612 |
|
Provisions |
|
1.985 |
7.147 |
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Total Current Liabilities |
|
102.762 |
138.759 |
|
Net Current Assets |
|
(3.996) |
(48.067) |
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|
MISCELLANEOUS EXPENSES |
|
0.283 |
0.979 |
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TOTAL |
|
178.696 |
205.603 |
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
|
384.525 |
386.467 |
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Profit/(Loss)
Before Tax |
|
(193.565) |
(261.252) |
|
Provision
for Taxation |
|
---- |
---- |
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Profit/(Loss)
After Tax |
|
(193.565) |
(261.252) |
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|
|
|
|
|
Total
Expenditure |
|
576.733 |
647.011 |
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
|
|
(50.30) |
(67.60) |
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Net
Profit Margin(PBT/Sales) |
|
|
(50.30) |
(67.60) |
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Return
on Total Assets(PBT/Total Assets} |
|
|
(71.08) |
(79.69) |
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Return
on Investment (ROI)(PBT/Networth) |
|
|
(0.54) |
(1.61) |
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|
Debt
Equity Ratio(Total Liability/Networth) |
|
|
(1.78) |
(3.12) |
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|
|
Current
Ratio(Current Asset/Current Liability) |
|
|
0.96 |
0.65 |
LOCAL AGENCY
FURTHER INFORMATION
Histrory
The company traces its roots back to the old coffee houses in
Italy - the hotbeds of poetry, love, music, writing, revolution and of course, fine
coffee. Drawing inspiration from them, company has single-handedly taken on the
challenge to open people's eyes to the simple pleasures of coffee and
revolutionize the coffee drinking experience in every city that company invade.
To live up to this promise, company has employed skilled
Italian roastmasters at our roastery in Venice. Sourced only the finest quality
Arabicas. And have had the espresso bars designed to reflect a warm, friendly
and inviting atmosphere. Add to this, a menu you can ponder over for hours and
you have everything you need to escape the pressures of daily life.
At last count, the aroma of fine Barista coffee permeated in
over 100 espresso bars across India, Sri Lanka and the Middle East. If you have
any trouble finding one, company suggest you simply follow your nose.
The
Economic Times Ahmedabad, Feb 2, 2006
When
Barista becomes youth brand Raghu Krishnan
With the process of selecting the Indian
barista to take on the best at the World Barista Championships (WBC) at the
penultimate stage, the buzz at the venue of the crowded food court at the Forum
Mall in India’s Garden City is all about how the 2003 WBC champ Paul Basset
became such a successful brand Down Under that he signed up deals not just with
espresso-machine manufacturers but with BMW too, apart from presenting TV shows
and DVDs on how to make that perfect5 cup that perks up the day!
“The last few years have seen Australia
emerging out of the shadows of the traditional and colonial tea culture and
moving into coffee drinking country,” quips Austral Asian Specialty Coffee
Association executive officer Keith Pettigrew, one of the international judges
for the ongoing IBC 2006.
From Melbourne to Mumbai and from Detroit
to Delhi, the barista who prepares and serves that stimulating cuppa coffee
within the youthful ambience of a café, bar or store has become an integral
part of the out-of-home coffee-drinking experience. So much so that in a survey
conducted not too long ago in Norway on the most popular professions, the Norwegian
youth ranked the barista over and above the diplomat! It could well be a case
of youth calling to youth, not just in Norway but the world over.
So much so that 22-year-old Akash Hirebet,
who joined the Café Coffee Day chain some several months ago after completing a
hotel management course, says he opted for this in preference to reputed
hotel-chains. “Not only is career growth much faster but there is this unique
experience of interacting with youthful customers who share the same passions
and enthusiasms”, he says. And 27-year-old Chiranjiv Giri, who is originally
from Nepal and manages the Barista bar in the New Delhi residential are of
Basant Lok, says he calls most of his regular customers by their first names.
Business
Standard New Delhi, Feb 2, 2006
Open Space Preeti R Iyer
Retail banking ABN-AMRO throws open it’s Bancafe to the imagination of its customers
Café’s and finance share a relationship
going back quite a while (modern insurance was invented in a coffee house), but
ABN AMRO has reinvented the connection as a considerably more relaxed marketing
device: Bancafe.
Bancafe, as the name suggests is a Barista-
serving café you might see adjoining an ABN AMRO bank outlet, a presence that
has already marked two years. But it has been a little more than a take-a-peek
curiosity to the typically hurried customer.
Now, hopes this Dutch bank, it will be a de
facto relationship consolidation tool. For it has thrown open doors for the
customer to use the café to the best of their imagination.
You may host a party for your toddler,
exhibit art creations by your loved ones or even hold a book reading or film
appreciation session; it is open space, free, between 7:30 pm and 11:00pm. This
is after banking hours so if the Bancafé area is not big enough, your event can
spill over into the lobby as well. Barista coffee is on the house, of course.
“Bancafe serves as a platform for customers
to engage with the communities with the immediate vicinity in a relaxed
environment”, says Nitin Chopra, senior Vice-President and head, consumer
banking (India), ABN AMRO, “secondly, it serves as a medium for a two way
interaction between the customers and the bank staff”.
The tests runs done, the concept has been
activated in Bangalore, Hyderabad, Mumbai and New Delhi, while such tier-II
towns as Moradabad and Surat are on the radar.
On weekends, day time space could also be
offered in central business localities such as Nariman Point and Rajiv Chowk.
With the Union Budget round the corner, the bank plans to hold interactions
with service tax experts, lawyers and others during these hours.
Its in the evenings, though, that people
are better able to escape the constraints of their clock work routine. Many
Indian families observes Chopra, are warming to the idea of a leisurely evening
visit to the bank to explore personal finance options with professional
advisors that’s the synapse that ABN AMRO as a brand is keen on securing for
itself.
Apart from granting customers space, ABN
AMRO also wants Bancafe accepted as a dependable information source. It also
offers access to the banks internet gateway that leads to a panoply of
financial websites, which could help predispose people to innovative banking
ideas.
Awards
A huge shot in the arm and validation of the company’s
efforts has been the recognition given independently by BBC, The Times of India
and Business Standard as the ‘Brand of the Year’ (2002).
Barista was also awarded the TOPS award for Specialty Coffee
Excellence by the Specialty Coffee Association of America (SCAA) which
recognizes specialty coffee retailers who differentiate themselves through
better business practices.
Recently Barista was also recognized by the HT Food Guide as
the best place to have coffee as well as ‘Café of the Year’ award given by The
Times Group – in the Times Food Guide.
For the year 2003-05, Barista has been selected as one of the
100 superbrands in the country and is amongst the youngest brands in the list,
to achieve this status.
Branch
Offices
Delhi
Barista Coffee Company,
D-2, 4th Floor, Southern Park
Saket District Center,
New Delhi
Tel: 011-65515160-165
Fax: 011-26567046
Kolkata
Barista Coffee Company,
10 Hindustan Road,
Kolkata - 700029
Tel: 033-65218084
Bangalore
Barista Coffee Company Limited,
7/21, T.Chowdiah Road,
Lower palace Orchards, Sankey Road,
Bangalore - 560003
Tel: 080-41154607-08
Fax-080-41154606
Mumbai
Planet Industrial Co-operative Society Ltd,
Basement, A - wing,
Subhash Road,
Vile Parle (E) Mumbai - 400057
Tel: 022-55076969
Fax: 022-56803746
Review
of Operation
During the period under review, the company
continued to enjoy strong consumer affinity in the coffee category. The company
during the year entered into a consolidation period. The year under review,
however was an extremely difficult and challenging one. The focus during the
year was on turning around the operations of the company, with emphasis on
monitoring and controlling the margins at the store level, and controlling
costs of the company. Several marketing initiatives like menu change,
introduction of new items of food and beverages, PR campaigns space selling etc
were rolled out, which have enabled barista to maintain and improve its strong
customer franchise. The company also entered into innovative co-location
arrangements to increase foot falls and reduce its fixed rental costs. The
various initiatives taken to increase revenues and reduce costs have started
showing results, and we expect the momentum to accelerate in the coming months.
Overseas Operations
The
overseas operations of the company channelled through its Wholly Owned
Subsidiary Barista Coffe (Mauritius) Limited made modest progress. The
operations in Srilanka with four stores continued to improve and they have
achieved cash break-even. The Dubai operations with its four newly opened
stores are in the process of establishing. However with the staff challenged
faced by the company in its domestic operations in India, overseas operations
are yet to be tapped in full measures.
Financials
The
company’s turnover during the year was Rs 368 Millions as against Rs 378
Millions during 2003-04. However the turnover during the year under review is
after adjusting for the few of the unviable stores shut/relocated during the
course of the year.
Share Holding
The
Directors wish to state that the Tata Coffee Limited sold their shareholding in
the company to Senthil Trade and business Links private Limited on 27th
December 2004
The
Directors wish to state that the Senthil Trade and Business Links Private
Limited sold their shareholding in the company to Sterling Infotech Group on 28th
March, 2005
Subsidiary Companies
The
company would make an application to the Central Government under section 212
of the companies Act, 1956 for seeking exemption from attaching the
subsidiary’s accounts in respect of Barista Coffee (Mauritius) Limited (Wholly
owned Subsidiary of the company) and Barista Coffee Lanka Private Limited
(Subsidiary through Barista Coffee (Mauritius) for the year ending on 31st
March, 2005)
|
SECURED
LOANS |
31.03.2005 |
31.03.2004 |
|
Term
Loan frombanks |
219.947 |
235.513 |
|
Interest
accrued and due |
0.092 |
0.000 |
|
Other
loans (Hire Purchase Creditors) |
1.064 |
0.996 |
|
|
221.0103 |
236.210 |
A] Term
Loans are secured by first charge on all present and future movables including
plant and machinery, spares, tools and accessories and book debts and further
secured by a corporate guarantee of rs 220.000 given by Sterling Infotech
Limited, the holding company.
B] Other
Loans are secured by hypothecation of specific vehicles
C] Term
Loans aggregating to Rs 42.989 Millions (Previous year Rs 116.333 Millions) are
repayable within one year
D] Other
Loans aggregating to Rs 0.203 Millions (Previous year Rs 0.515 Millions) are
repayable within one year
|
UNSECURED
LOANS |
31.03.2005 |
31.03.2004 |
|
Loans
from bodies corporate |
305.000 |
120.000 |
|
Interest
accrued and due |
3.212 |
0.000 |
|
Liabilities
against finance lease |
726.183 |
10.769 |
|
|
315.473 |
130.769 |
A] Loans
from bodies corporate includes Loan from Sterling Infotech Limited, the holding
company for Rs 280.000 Millions
B] Loans
rom bodies corporate aggregating to Rs 305.000 Millions (Previous year Rs
120.000 Millions)are repayable within one year.
C]
Liability against finance lease includes RS 5.420 Millions (Previous year RS
4.507 Millions) repayable within one year
Fixed Assets
Tangible Assets
- Leasehold Improvements
- Plant and Machinery
- Computers
- Office Equipments
- Furniture and Fittings
- Vehicles
Intangible Assets
- Software
|
Name of the company |
BARISTA COFFEE COMPANY LIMITED |
|
Presented By |
MR JITENDRA JAGOTA, COMPANY SECRETARY |
|
1) Date and description of instrument creating the change |
Agreement
for Hypothecation of Stock in trade, Machinery, Book Debts, Bills and all
other movables dated 1st June, 2004 and registered on 30th
June, 2004. |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Term
Loan of Rs 400.000 Millions |
|
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 |
First
Charge on movables including plant and machinery spares tools and accessories
and also book debts both present and future. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
As per
the term loan agreement dated 1st June, 2004 including inter alia
following terms: Interest
rate : 2.75% pa.a below IVRR with a minimum of 8.5 % per annum. Repayment
– 12 equal quarterly instalments starting after moratorium of 12 months from
the date of first disbursement. |
|
5) Name and Address and description of the person entitled to the charge. |
ING Vysya
Bank Limited 22, M
G Road, Bangalore – 560001 and branch
Office at 185, Anna Salai, Chennai – 600006 |
|
6) Date and brief description of instrument modifying the charge |
Bank
letter dated 04.02.2005 |
|
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. |
The
existing term loan of rs 400.000 Millions has been reduced to Rs 220.000
Millions pursuant to part repayment of Rs 180 Million to ING Vysya Bank. |
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.44.11 |
|
UK
Pound |
1 |
Rs.86.58 |
|
Euro |
1 |
Rs.57.04 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
-- |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
17 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|