MIRA
INFORM REPORT
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Report Date : |
16.06.2007 |
IDENTIFICATION DETAILS
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Name : |
SPICE MOBILES LIMITED |
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Registered Office : |
D-1, Sector-3, District Gautam Budh Nagar, Noida – 201 301, Uttar
Pradesh |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
23.12.1986 |
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Com. Reg. No.: |
55-8448 |
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CIN No.: [Company
Identification No.] |
L72900UP1986PLC008448 |
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Legal Form : |
Public limited liability company. Company’s Shares are listed on Stock
Exchange. |
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Line of Business : |
Subject deals in Telecommunication Equipments. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1200000 |
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Status : |
Satisfactory |
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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 satisfactory
track. Directors are reported as experienced and respectable businessmen. Trade
relations are reported as fair. Business is active. Payments are usually
correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered & Head Office: |
D-1, Sector-3, District Gautam Budh Nagar, Noida – 201 301, Uttar
Pradesh |
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Tel. No.: |
91-120-4363600 / 4363800 / 4320462-64 |
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Fax No.: |
91-120-4363845 / 4320467 |
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E-Mail : |
complianceofficer@spicelimited.com
Sales/Trade : trade-enquiry@spicemobile.in Marketing : marketing@spicemobile.in General : contactus@spicemobile.in Product Feedback : product@spicemobile.in Customer Care : customercare@spicemobile.in |
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Website : |
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Factory 1 : |
Village Billanwalla, Baddi P. O., The. Nalagarh, Dist. Solan, Himachal
Pradesh |
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Factory 2 : |
Shahzad Nagar, Modipur, Pampur – 244901, |
DIRECTORS
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Name : |
Ms. Radha Krishna Pandey |
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Designation : |
Chairman |
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Name : |
Mr. Ram Nath Bansal |
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Designation : |
Director |
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Name : |
Mr. Ravinder Lal Ahuja |
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Designation : |
Director |
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Name : |
Mr. Kunal Ahooja |
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Designation : |
Director & Chief Executive
Officer |
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Name : |
Mr. Arun Seth |
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Designation : |
Director & Chief Executive
Officer |
KEY EXECUTIVES
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Name : |
Ms. Renu Gupta |
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Designation : |
Company Secretary & Compliance Officer |
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Date of Appointment : |
01.07.2006 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters [Including Persons acting in concert] |
24941530 |
66.83 |
|
Mutual Funds / UTI |
-- |
0.00 |
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Banks / Financial Institutions |
625295 |
1.68 |
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Public and others |
9748460 |
26.12 |
|
NRIs / OCBs |
2003715 |
5.37 |
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Total |
37319000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject deals in Telecommunication Equipments. |
GENERAL INFORMATION
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No. of Employees : |
147 |
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Bankers : |
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Facilities : |
-- |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S. R. Batliboi and Company Chartered Accountants |
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Address : |
B-26, Qutab Institutional Area, |
CAPITAL STRUCTURE
As on 30.06.2006
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30000000 |
Equity Shares |
Rs. 10/- each |
Rs. 300.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
22391400 |
Equity Shares |
Rs. 10/- each |
Rs. 223.914
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 [9 Months] |
30.06.2005 [18 Months] |
31.12.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
112.000 |
112.000 |
56.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
197.300 |
168.300 |
99.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
309.300 |
280.300 |
155.700 |
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LOAN FUNDS |
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1] Secured Loans |
21.500 |
18.500 |
48.600 |
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2] Unsecured Loans |
50.000 |
3.500 |
80.500 |
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TOTAL BORROWING |
71.500 |
22.000 |
129.100 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
380.800 |
302.300 |
284.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
49.000 |
45.800 |
19.100 |
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Capital work-in-progress |
2.800 |
2.000 |
0.300 |
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INVESTMENT |
0.100 |
0.100 |
0.000 |
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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 |
176.100
|
118.700 |
90.000 |
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Sundry Debtors |
230.200
|
283.400 |
258.300 |
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Cash & Bank Balances |
219.400
|
64.200 |
42.400 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
73.100
|
37.600 |
51.000 |
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Total
Current Assets |
698.800
|
503.900 |
441.700 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
341.300
|
213.300 |
160.900 |
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Provisions |
28.600
|
36.200 |
15.400 |
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Total
Current Liabilities |
369.900
|
249.500 |
176.300 |
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Net Current Assets |
328.900
|
254.400 |
265.400 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
380.800 |
302.300 |
284.400 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 [9 Months] |
30.06.2005 [18 Months] |
31.12.2003 |
|
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Sales Turnover |
1168.800
|
1416.800
|
1104.900
|
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Other Income |
11.900
|
18.100
|
10.000
|
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Stock Adjustments |
49.800
|
07.100
|
16.600
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Total Income |
1230.500 |
1442.000 |
1131.500 |
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Profit/(Loss) Before Tax |
39.00 |
51.100 |
31.900 |
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Provision for Taxation |
[2.700] |
3.800 |
16.700 |
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Profit/(Loss) After Tax |
41.700 |
47.300 |
15.200 |
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Expenditures : |
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Raw
Materials |
962.200
|
1094.100
|
870.900
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Excise
Duty |
0.000
|
19.500
|
75.400
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Power
& Fuel Cost |
0.600
|
1.600
|
0.700
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Other
Manufacturing Expenses |
9.900
|
26.400
|
2.800
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Employee
Cost |
42.900
|
88.800
|
48.700
|
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Selling
and Administration Expenses |
131.700
|
101.300
|
57.400
|
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Miscellaneous
Expenses |
27.300
|
28.700
|
17.200
|
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Interest
& Financial Charges |
13.600
|
25.000
|
22.900
|
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Depreciation
|
3.300
|
5.500
|
3.600
|
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Total Expenditure |
1191.500 |
1390.900 |
1099.600 |
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SUMMARISED RESULTS
|
PARTICULARS |
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|
31.12.2006 |
|
Type |
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|
Full
Year |
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Sales
Turnover |
|
|
1218.500 |
|
Other
Income |
|
|
16.900 |
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Total
Income |
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|
1235.400 |
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Total
Expenditure |
|
|
1287.900 |
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Operating
Profit |
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|
[52.500] |
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Interest |
|
|
17.800 |
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Gross
Profit |
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|
[70.300] |
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Depreciation |
|
|
03.500 |
|
Tax |
|
|
05.200 |
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Reported
PAT |
|
|
[88.900] |
|
Dividend
(%) |
|
|
00.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 [9 Months] |
30.06.2005 [18 Months] |
31.12.2003 |
|
Debt-Equity
Ratio |
0.16 |
0.35 |
0.85 |
|
Long
Term Debt-Equity Ratio |
0.00 |
0.00 |
0.08 |
|
Current
Ratio |
1.69 |
1.64 |
1.47 |
|
TURNOVER
RATIOS |
|
|
1235.400 |
|
Fixed
Assets |
21.26 |
16.96 |
23.53 |
|
Inventory |
10.57 |
9.05 |
13.85 |
|
Debtors |
6.07 |
3.49 |
4.26 |
|
Interest
Cover Ratio |
3.87 |
3.04 |
2.39 |
|
Operating
Profit Margin(%) |
4.78 |
5.76 |
5.29 |
|
Profit
Before Interest And Tax Margin(%) |
4.50 |
5.37 |
4.96 |
|
Cash
Profit Margin(%) |
3.85 |
3.73 |
1.70 |
|
Adjusted
Net Profit Margin(%) |
3.57 |
3.34 |
1.38 |
|
Return
On Capital Employed(%) |
20.53 |
17.28 |
19.96 |
|
Return
On Net Worth(%) |
18.86 |
14.46 |
10.26 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.17.85/- |
|
Low |
Rs.16.20/- |
LOCAL AGENCY FURTHER INFORMATION
Incorporated as a
Public Limited Company in the name of Modi Olivetti Limited on December 23,
1986 under the Companies Act, 1956 by the Registrar of Companies, Uttar Pradesh
and received the Certificate of Commencement of Business on March 25, 1988. The
name of the Company was changed to MOL India Limited w.e.f. August 23, 1999.
The name of the Company was further changed to Spice Net Limited on December 5,
2000 and subsequently to Spice Limited w.e.f. July 4, 2005.
The Registered
Office of the Company was shifted from Meerut Bypass, Modipuram – 250 110,
Meerut, Uttar Pradesh to E - 53, Sector - 3, District Gautam Budh Nagar, Noida
– 201 301, Uttar Pradesh with effect from August 1, 2002 and subsequently to
the present address with effect from July 6, 2005.
History
Modi Olivetti, renamed to Mol India Limited (MOL), has
presently (year' 2000) acquired the name Spice Net Limited (SNL), has been
jointly promoted in 1986 by Modi Rubber and Indian Prographic Systems in
technical and financial collaboration with ING C Olivetti & Co, Italy. The
collaborator has a 40% stake in the company.
MOL came out with its maiden public issue in Oct.'89 to part-finance its
project to manufacture and market mini computers / microprocessor-based systems
at Ranipur, Uttar Pradesh. The company is offering a wide range of the latest
PCs. The company laid emphasis on the banking and financial segment, an area in
which its collaborator has specially demonstrated its skill. A new division
called the Olivetti Business Division was created in 1993-94 to sell Olivetti's
peripherals.
During 1993-94, exports jumped to Rs 88 Millions. The SAARC countries have been
added to the CIS countries as a potential area of export. In 1993-94, the
company earned foreign change worth Rs 84.500 Millions. MOL has received the
ISO 9002 certification for its manufacturing facilities in Ranipur.
The company has leveraged strategic tie-ups with IBM,
Compaq, Acer and Hewlett-Packard, as their National Business Partner and Authorised
Service Provider for PC's Desktops, Notebooks, Services, Workstations Mid-range
Servers. The company has also maintained healthy associative relations with
Microsoft, Novell, AMP, CISCO, Nortel, Wipro LIPI and HP in several areas.
Set up of Manufacturing Facility for Mobile Handsets at
Baddi, Himachal Pradesh:
In order to avail of various tax and other benefits being offered by the
Himachal Pradesh State Government, the Company is in the process of setting up
a manufacturing facility for Mobile Handsets at the factory premises of the
Company situated at Baddi, Distt. Solan, Himachal Pradesh. With lower
manufacturing cost of handsets and economies of scale, the Company would be
able to tap a larger share of the Mobile Handsets market which is growing at a
rapid pace. This will also enable the Company to create an aspirational brand
at the entry level mobile phones, by offering affordable yet feature rich
handsets with innovative solutions and pre-embedded contents, which are
developed by in-house software specialists and telecom solutions team. Thus
resulting in an increased competitiveness and raising the returns on deployed
capital.
Industry structure and developments:
The Indian Telecommunications industry has grown exponentially in the recent
past and is expected to grow further. At the end of 2005, the cumulative mobile
subscriber base stood at 75.28 million. The total mobile subscribers at the end
of March 2006 are 89.53 million. TRAI has estimated the total number of mobile
subscribers to touch 200 million by December 2007.
The Indian wireless market is nearing an inflection point in terms of ramping
subscriber growth, as favorable demographics, strong economic growth, and
improving availability of lower-end handsets, position the country to deliver
strop, growth over the next several years. It is clear that the Central
Government, combined with wireless operators, have high aspirations for
increasing tele-density to more than 200 million subscribers by the end of 2007
with 130 million of these subscribers reached by mobile technologies. A
conducive regulatory environment, affordable services and increased
geographical penetration of networks, is driving the mobile penetration in
Opportunities:
With the growth in the telecom sector and the aggressive penetration by the
service operators, there lies a huge potential in the handset market. The
service operators have an aggressive plan to increase their penetration from
1500 towns to 5000 towns in the next 2 years. With focus on tapping the new
markets gaining importance and expected contribution to be higher in
proportion, there is a huge opportunity for entry-level handsets across all
segments. They have that the identification of specific consumer segments and
the provision of customized products and services to such segments will
differentiate us from their competitors and increase customer loyalty. Spice
Limited's focus segments includes - Entry Black & White/ Entry Color/Entry
MP3 Phone/Entry Radio FM/Entry Camera. They shall provide products with
differentiated features thus ensuring customer delight. Preloaded mobile phones
with localized Indian content as a value-add for the Indian customers. Increase
the range of their products and related accessories keeping abreast with latest
technological advancements in the mobile handset industry.
Outlook:
With the growth promising to sustain over the next few years the market size
and potential is big enough for various brands to co-exist. Spice Limited
believes it has the required resources and knowledge of the market to be able
to grow its market share to 100' in the next 5 years. In order to accomplish
the same, they have adopted the following strategies –
* Marketing - Capturing heart and minds of consumers thereby creating an
aspirational brand for the masses with the brand theme of 'Style International
Dil Phir Bhi Indian'.
* Sales b Distribution - They have a Pan-India distribution network through
officially appointed Regional Distributors specifically focusing on the rural
and upcountry markets. The strategy is to minimize tiers of distribution and
pass on this margin to the Regional, Micro Distributors and Retailers thereby
ensuring increased profitability for partners.
* Product - To provide value-added products with differentiated features and
customized content at affordable price.
* After Sales Service - Spice believes in the philosophy of 'Always Customer
First', hence products to be launched in the market only after service
infrastructure is in place. They are nurturing and establishing Customer
Service under brand name 'after Spice'.
* Intellectual Property Development Strategy - Their management team has
in-depth industry knowledge and extensive managerial experience in Mobile
phones business and operations. They have structured their operations to enable
and encourage decision making and empowerment at various levels and have
invested in their human resources and have a performance driven reward system.
They seek to constantly train their employees and utilize information
technology to improve their operations.
BUSINESS SEGMENT - IT DIVISION:
Industry structure and developments
The Indian Personal Computer (PC) market recorded an impressive growth in FY
2005-06 in terms of unit shipments. The market grew 30% over the previous
financial year to exceed 46 lakh units.
While the Desktop PC market grew by 21%, the Notebook PC market registered a
growth of 168% Year on Year.
I.T consumption in the country continued to be dominated by Industry verticals
and corporate sectors such as Telecom, Banking & Financial services,
Manufacturing and I.T enabled services. The consumption in these segments were
largely driven by investments in software, solutions and other enterprise
products. Apart from these traditional sectors, high consumption was also
witnessed in SMEs, education, retail and other computer centric small
enterprises. In addition, the trend of increased PC purchase in households,
smaller towns and cities as witnessed over the last few quarters, continued to
be steadfast. Aggressive pricing by the PC vendors has also helped improve the
PC penetration, especially in the households and the SME segments.
Opportunities:
The Banking and Financial Services sector has been a major consumer of I.T
products and services, traditionally, and continues to be so at present.
Due to their significant presence in this segment, they are
uniquely positioned to tap the vast buying potential of this sector. With their
recent re-entry into the State Bank of
The Cheque Clearing process in the Banking industry is poised for a major
overhaul with the proposed introduction of the Image Based Cheque Truncation
System. They are in the process of introducing Specialized Cheque
Readers/Scanners from their principals Olivetti to address this burgeoning
market.
Threats, Risk & Concern:
Intense competition from MNC and large Domestic Players having economies of
scale is a huge threat in the PC business. The entry of Chinese competitor,
LENOVO, selling the IBM brand, and leveraging their volume with high
operational efficiency will push the PC prices southwards. New entrants in the
domestic circuit are keen on cornering a part of the pie and are offering very
aggressive prices.
The passbook printer still remains a strategic part of the business plan and
the company remains fully dependent on its principal, Olivetti, for the supply.
Intense competition from emerging brands such as Epson and LIPI has pushed the
prices southwards and resulted in reduction of margins. d) Product
Performance
In the System & Solutions business, the company focused on consolidation in
existing large accounts such as Indian Bank as well as re-entry into large
conglomerates like the SBI group. As a result, the company bagged a large order
of Rs.140 Millions from Indian Bank.
In the passbook printer business, the company did phenomenally well, earning a
revenue of Rs.325.700 Millions during the nine months period under
review.
Outlook:
In the year 2006-07 the LT market is slated to grow in a robust manner since
the Government and industry is committed to increase the PC penetration to 6.5%
by 2008. The demand for Notebooks will continue unabated and the growth will be
much steeper than witnessed for Desktops in terms of percentage. PC sales in
the fiscal 2006-07 are expected to touch 56 lakh units fuelled through lower PC
prices, lower bandwidth rates and impetus for local language software and
applications.
AS PER WEBSITE
Subject is a part of M Corp
Global,
Subject intends to strengthen
its footprints, build a strong value proposition with the customers and
establish itself as an aspirational brand for the masses. The company aims to
achieve this through a broader offering of cutting-edge handsets that combine
mobile phone functionality with enriched content and smart device capabilities
for greater high-speed voice and data capacity.
The Company has chalked out an extensive plan for launching Spice
Mobiles nationally. As the penetration of cellular networks into Sec B, C, D
and E markets are on the increase at an exponential rate, Spice Mobiles
Limited. plans to focus on building its brand, ‘ Spice Mobile Phones' nation-wide by expanding their
reach to smaller & mid-sized towns with a higher focus on tier II & III
(SEC B, C, D and E) markets. The company is also setting up a state of the art
manufacturing facility at Baddi in Himachal Pradesh. With strong intellectual
capital combined with strategic marketing initiatives, Spice Mobile Phones aims
to achieve 10% market share by the year 2009.
Ms. Priyanka Chopra, former Miss World 2000 and a leading
Bollywood actress, is the Brand Ambassador for Spice Mobiles. She is the
epitome of modern women who is adorned with beauty, intelligence and grace. She
would play a key role in building a strong bond with the Indian consumers and
communicating the Spice Imagery of “STYLE
INTERNATIONAL DIL PHIR BHI INDIAN”
In addition to expanding its existing presence Spice Mobiles Limited. plans to
fortify its position by setting up a strong local distribution network through
a unique model of exclusive regional distributor at the state level and micro
distributors at the district level. Spice Mobiles Limited. plans to build a
strong supply and support infrastructure covering 20,000 Retailers across
As a step to ensure world-class support to the channel and the customer, Spice
plans to establish an effective service network, under the brand name, 'afterSpice' across the country.
Product Category
Catering to a the entry-level segment in the initial phase, the
company's success lies in seemingly never-ending lineup of cutting-edge mobile
phones, delivering features that consumers clamor for, such as high memory
capacity, mega-pixel camera, FM radio, Blue tooth, smart phones and PDA.
Spice has launched a range of Mobile Phones at amazingly pocket
friendly prices, combined with world-class design & technology.
Spice Mobile Phones announces “Mobile Disco” - A Roadshow in
Showcases
S 600 – a true MP3 phone for all music lovers
Mobile
Disco, which began in first week of April, will roll out in various parts of
Commenting
on the roadshows, Ms. Payal Gaba Head Marketing Spice Limited said, "These
roadshows are a part of Spice continuous effort in simplifying technology and
making it an integral part of their consumers' varied lifestyles. Through the
roadshows, consumers can experience the fun and excitement of mobile music.
They can enjoy special games, contests and be a part of special Mobile Disco”
About
Spice Mobile Phones
Spice
Limited is a part of M Corp Global,
Spice Limited intends to strengthen its footprints, build a
strong value proposition with the customers and establish itself as an
aspirational brand for the masses. The company aims to achieve this through a
broader offering of cutting-edge handsets that combine mobile phone
functionality with enriched content and smart device capabilities for greater
high-speed voice and data capacity.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.40.70 |
|
|
1 |
Rs.80.80 |
|
Euro |
1 |
Rs.54.65 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
49 |
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 |
|