MIRA
INFORM REPORT
|
Report Date : |
18.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
HUTCHISON ESSAR SOUTH LIMITED |
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Formerly Known As : |
Barakhamba Sales & Service Limited |
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Registered Office : |
C-48, Okhla Industrial Area, |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
07.12.1995 |
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Com. Reg. No.: |
074451 |
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CIN No.: [Company
Identification No.] |
U74899DL1995PLC074451 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELH05216B |
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PAN No.: [Permanent
Account No.] |
AABCB5847L |
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Legal Form : |
Closely Held Public Limited Liability Company. |
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Line of Business : |
Owing and Operating cellular telephone services in the
State of |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
USD 25000000 |
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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 some accumulated losses.
Payments are reported as slow but correct. The company can be considered normal for small business dealings at
usual trade terms and conditions, with slight caution initially. |
LOCATIONS
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Registered Office : |
C-48, Okhla Industrial Area, Phase – II, |
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Mobile No.: |
91-989811090001/ 9811090001/9811144444/9811398001 |
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Fax No.: |
91-11-26338730 |
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E-Mail : |
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Website : |
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Corporate Office : |
Hutch House, Peninsula Corporate Park, Ganpatrao Kadam
Marg, Lower Parel, Mumbai – 400013, |
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Tel. No.: |
91-22-66645000 |
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Fax No.: |
91-22-66661222 or 66661200 |
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Branches : |
Located at: Hubli, Mangalore, Karnataka ( Prestige Blue Chip, Ground Floor, Block 1, No – 09, Tel : 91-80-5119 3000 Fax : 91-80-5119 3010 Karnataka (Hubli) No. 44, Upper Ground Floor, Tel : 91-836-236 9853 Fax : 91-836-2369851 Mangalore
Tel : 91-824-2427789 2959, II Floor, “Aishwarya” Arcade, 9th
Cross, Tel : 91-9886408681 Davangere No. 266, 1st
Floor, 1st Main, Bharat Scouts and Guides Towers, Janatha Bazaar
Road, P. J. Extension, Davangere-577002, Karnataka Tel : 91 8192
259933/44 Ahmedabad Gujarat Fascel
Limited, 601, Sakar-II, Ellisbridge, Ahmedabad 380006, Tel :
91-79-26577228/29, 26575990 Hutch, X-7,
Okhla Industrial Area II, New Delhi-110020 Tel :
91-9811000009 6th
Floor, Tel :
91-40-27764600 Fax :
91-40-27764700 Vijaywada Tel :
91-866-493113 Fax : 91 866
493117 Vishakapatnam Balaji
Mangalgiri, Tel :
91-891-760777 Fax :
91-891-760995 Chennai Hutch, 222, Kolkata Kolkata
Hutchison Telecom East Limited Constantia
Office Complex, 11, Tel :
91-9830098241 Jaipur Karnal Tel : 91-9813098130 205-206, Chintels House, 16, Tel : 91-9839098390 |
DIRECTORS
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Name : |
Mr. Foll John Christopher |
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Designation : |
Director |
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Address : |
9th and 10th Floor, Suraj Appartments, Opposite
American Consulate, |
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Date of Birth/Age : |
16.08.1956 |
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Date of Appointment : |
27.08.2003 |
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Name : |
Mr. Foll John Christopher |
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Designation : |
Director |
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Address : |
9th and 10th Floor, Suraj Appartments, Opposite
American Consulate, |
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Date of Birth/Age : |
16.08.1956 |
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Date of Appointment : |
01.02.2005 |
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Name : |
Mr. Ghosh Asim |
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Designation : |
Director |
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Address : |
64, NCPA Appartments, Nariman Point, Mumbai – 400021, |
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Date of Birth/Age : |
07.12.1947 |
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Date of Appointment : |
27.08.2003 |
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Name : |
Mr. Kathuria Sundeep |
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Designation : |
Director |
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Address : |
C-552, 1st Floor, Defence Colony, |
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Date of Birth/Age : |
14.11.1965 |
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Date of Appointment : |
14.05.2001 |
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Name : |
Mr. Sawhney Rajiv |
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Designation : |
Director |
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Address : |
1New, Friends Colony West, |
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Date of Birth/Age : |
18.08.1960 |
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Date of Appointment : |
25.12.2002 |
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Name : |
Mr. Saraf Vikash |
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Designation : |
Director |
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Address : |
2B, Saker Appartments, 71, |
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Date of Birth/Age : |
18.12.1968 |
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Date of Appointment : |
01.02.2005 |
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Name : |
Mr. Sixt Frank |
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Designation : |
Director |
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Address : |
Flat G/B |
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Date of Birth/Age : |
29.11.1951 |
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Date of Appointment : |
01.02.2005 |
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Name : |
Mr. Lui Dennis |
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Designation : |
Director |
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Address : |
Doplex 5, Dynasty Villa 8, |
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Date of Birth/Age : |
02.03.1951 |
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Date of Appointment : |
01.02.2005 |
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Name : |
Mr. Carolan Geoffrey |
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Designation : |
Director |
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Address : |
12th Floor, Urmi 65, |
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Date of Birth/Age : |
13.03.1966 |
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Date of Appointment : |
01.02.2005 |
KEY EXECUTIVES
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Name : |
Ms. Sharma Neha |
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Designation : |
Secretary |
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Address : |
D-12, Sarita Vihar, |
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Date of Birth/Age : |
19.07.1973 |
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Date of Appointment : |
28.01.2002 |
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Name : |
Mr. Balasubramaniam S. |
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Designation : |
Manager |
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Address : |
3A, Kanchana Appartments, 78, ST, |
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Date of Birth/Age : |
09.06.1966 |
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Date of Appointment : |
31.12.2004 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders (28.03.2005) |
No. of Shares |
|
Hutchison Essar Mobil Services Limited |
274199992 |
|
Asim Ghosh |
1 |
|
Foll John Christopher |
1 |
|
Carolan Geoffrey |
1 |
|
Das Sandip |
1 |
|
Narayanan Sankaran |
1 |
|
Kathuria Sundeep |
1 |
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Sharma Neha |
1 |
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Mohan Aseem |
1 |
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Ms. Essar Shippings |
1000000 |
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Central Depository Services Limited |
264407500 |
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Hutchison Essar Mobile Services Limited |
200000 |
31.03.2006
Bodies Corporate - 100%
BUSINESS DETAILS
|
Line of Business : |
Owing and Operating cellular telephone services in the
State of |
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Products : |
v
Postpaid v
Prepaid v
World Calling Card v
Handy phones v
Hutch PCO |
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Brand Names : |
“HUTCH”. |
GENERAL INFORMATION
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Suppliers : |
v
v
v
v
v
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Customers : |
v
National and International Roaming Spanning over
130 countries and 1200 cities, towns and highways in India, infotainment
services from HutchAlive. v
SMS-based services v
Voice Messaging Service v
Voice Response Service v
Voicemail v
Fax and Data Services v
Unified Messaging Service in Karnataka |
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No. of Employees : |
200 |
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Bankers : |
v
Indian Overseas Bank Limited, Chennai, Tamilnadu v
State Bank of v
State Bank of v
Tamilnadu Mercantile Bank Limited, Chennai, Tamilnadu v
Tamilnadu Mercantile Bank Limited, |
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Price Waterhouse & Company Chartered Accountants |
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Address : |
PWC House, P – 1, Aditya Vihar, Sadulajab D Block, Saket, Mehrauli,
Badarpur Road, New Delhi – 110030 |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
540000000 |
Equity Shares |
Rs. 10/- each |
Rs. 5400.000 Millions |
|
200000 |
Preference Shares |
Rs. 100/- each |
Rs. 20.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
539607500 |
Equity Shares |
Rs. 10/- each |
Rs. 5396.075 Millions |
|
200000 |
Preference Shares |
Rs. 100/- each |
Rs. 20.000 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
54160.800 |
54160.800 |
54160.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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4] (Accumulated Losses) |
(47793.500) |
(30986.500) |
(18195.200) |
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NETWORTH |
6367.300 |
23174.300 |
35965.600 |
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LOAN FUNDS |
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1] Secured Loans |
110165.500 |
70810.000 |
47300.000 |
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2] Unsecured Loans |
110645.500 |
87445.500 |
45645.500 |
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TOTAL BORROWING |
220811.000 |
158255.500 |
92945.500 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
227178.300 |
181429.800 |
128911.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
203165.300 |
159165.700 |
113107.700 |
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Capital work-in-progress |
25862.000 |
12321.600 |
3966.400 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
29226.300 |
25071.000 |
13388.400 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
254.800
|
213.600 |
2223.000 |
|
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Sundry Debtors |
12418.900
|
6417.200 |
166.200 |
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Cash & Bank Balances |
10755.500
|
5749.500 |
3214.500 |
|
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Other Current Assets |
26482.500
|
10527.800 |
3155.800 |
|
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Loans & Advances |
0.000
|
0.000 |
3329.200 |
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Total
Current Assets |
49911.700
|
22908.100 |
12088.700 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
78232.400
|
37115.400 |
14354.100 |
|
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Provisions |
2754.600
|
921.200 |
75.100 |
|
Total
Current Liabilities |
80987.000
|
38036.600 |
14429.200 |
|
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Net Current Assets |
(31075.300)
|
(15128.500) |
(2340.500) |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
789.100 |
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|
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TOTAL |
227178.300 |
181429.800 |
128911.100 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2005 |
31.12.2004 |
31.12.2003 |
|
|
Sales Turnover |
12313.080 |
5858.870 |
2157.730 |
|
|
Other Income |
9.880 |
2.950 |
54.190 |
|
|
Total Income |
12322.960 |
5861.820 |
2211.920 |
|
|
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|
|
|
|
|
Profit/(Loss) Before Tax |
(2071.100) |
(2463.350) |
(1716.920) |
|
|
Provision for Taxation |
390.400 |
1184.220 |
808.390 |
|
|
Profit/(Loss) After Tax |
(2461.500) |
(3647.570) |
2525.310 |
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Earnings in Foreign Currency : |
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Other Earnings |
NA |
370.530 |
63.980 |
|
Total Earnings |
NA |
370.530 |
63.980 |
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Imports : |
|
|
|
|
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|
Capital Goods |
NA |
2327.120 |
1142.480 |
|
Total Imports |
NA
|
2327.120 |
1142.480 |
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Expenditures : |
|
|
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|
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|
Purchases made for re-sale |
175.290 |
241.860 |
73.620 |
|
|
Salaries, Wages, Bonus, etc. |
727.690 |
431.990 |
0.000 |
|
|
Managerial Remuneration |
1.630 |
0.000 |
0.000 |
|
|
Payment to Auditors |
5.790 |
3.420 |
0.000 |
|
|
Interest |
991.040 |
80.650 |
592.310 |
|
|
Insurance Expenses |
21.260 |
14.340 |
0.000 |
|
|
Power & Fuel |
622.690 |
274.130 |
0.000 |
|
|
Depreciation & Amortization |
2125.710 |
1299.850 |
853.630 |
|
|
Other Expenditure |
9722.960 |
5978.930 |
2429.320 |
|
Total Expenditure |
14394.060 |
8325.170 |
3948.88 |
|
KEY RATIOS
|
PARTICULARS |
|
31.12.2005 |
31.12.2004 |
31.12.2003 |
|
PAT / Total Income |
(%) |
(19.97)
|
(62.22) |
(114.16) |
|
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|
Net Profit Margin (PBT/Sales) |
(%) |
(16.80)
|
(42.02) |
(77.62) |
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|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.81)
|
(1.35) |
(1.37) |
|
|
|
|
|
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|
Return on Investment (ROI) (PBT/Networth) |
|
(0.32)
|
(0.10) |
(0.04) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
47.39
|
8.47 |
2.98 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.61
|
0.60 |
0.83 |
LOCAL AGENCY FURTHER INFORMATION
|
Corporate
identity number of the company |
U74899DL1995PLC074451 |
|
Name of the
company |
HUTCHISON ESSAR SOUTH LIMITED |
|
Address of the registered
office or of the principal place of
business in |
C-48, Okhla Industrial Area, |
|
This form is for |
Creation of
Charge |
|
Type of charge |
Hypothecation |
|
Particular of
charge holder |
IL and FS Trust
Company Limited, Plot No. C-22, G Block, BA, Kurla Complex, Bandra (East),
Mumbai – 400051, |
|
Nature of
instrument creating charge |
Deed of
Hypothecation dated 21.02.2006 executed by the company in favour of IL and FS
Trust Company Limited as Security Trustee – Details in annex 1 |
|
Date of
instrument Creating the charge |
21.02.2006 |
|
Amount secured by
the charge |
Rs. 67100.000
Millions |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
As detailed in
annexure 2 |
|
Description of
the property charged |
Plant and
Machinery, Stock in Trade,
book
Debts, Fixed Deposits, Furniture and Fixture, Vehicals, Intangible Assets |
HISTORY
Subject was incorporated on 7th December, 1995 at
The name of the company was changed to the present w.e.f. 12.02.2002.
The Company established its presence in
In 2000, the company did a joint venture with Essar to expand its presence in
the country. Hutchison Essar acquired the cellular licenses in
The Company won the bid to operate as the 4th cellular service provider in
Chennai, Karnataka and Andhra Pradesh in 2001 on GSM 1800 network.
It now has operations in 12 circles –
The Hutchison’s Telecommunications is a wholly owned subsidiary of Hutchison
Whampoa Limited. It operates a wide range of integrated telecommunications
services in over 17 countries. It was formed in 1985 to run a cellular network
in
Hutchison Telecom has a successful track record in identifying potential
countries and technologies, developing them and creating shareholder value over
a long term. One of its key success stories was developing the first consumer
brand in telecom –
BUSINESS
Subject is engaged in owning and operating cellular telephone services
in the state of Tamilnadu, Karnataka and Andhra Pradesh.
The company has been given licence by the department of
Telecommunication to operate Cellular Telephone Services.
The company’s three southern network are scheduled to become operational
by June, 2002.
The company sells its’ products under the brand name
Fixed Assets
v
Intangible Assets
v
Computer Software
v
Plant & Machinery
v
Computer Hardware
v
Furniture & Fixture
v
Office Equipment
v
Vehicles
Subject’s dealers in and around
v
A C Telecom
v
Aakash Hello Point
v
A B Communication
v
ADD World
v
Advani Telecom
v
Aggarwal Electronics
v
Air Dale, Khan Market
v
Aircon
v
Air cool
v
v
Alok Telecom
v
Aman Telecom
v
Amit Comm
v
Aneja Commercial Services
v
Anjali Communications
v
Ankur Aircond
v
v
Arora Bazar
v
Arora Communications
v
Arora Tours and Travels
v
Ashwani
v
Asian Electronics
v
Astral Marketing
v
Audio Point
v
Audio Video
v
AVM
v
Azad Hind
v
B B M Telecom
v
B S Telecom
v
Bajrang General Store
v
Balaji Electric Store
v
Balaji Telecom
v
Bansal Telecom
v
Bawa Telecom
v
Baxi Electronics
v
Beauty Comm
v
Benz
v
Best Cell Tell
v
Bhagwati Computer Graphics
v
Bhagwati Telecom
v
Bhagya Sri Telecom
v
Bhalla Comm
v
Bharat Medical Store
v
Bhasin
v
Bhatia Telecom
v
Bigben Opticals
v
Billa Thi Hatti
v
Bluez Cafi
v
Britel Comm
v
Bunty Telecom
v
Call Tech
v
Capital Communication
v
Cell Connection
v
Cell Dot Net
v
Cell Hut
v
Cell net
v
Cell Point
v
Cellstation Hut.com
v
Cellular.com
v
Chhadha Telecom
v
Chadha Trad
v
Chaturbhuj Medical Store
v
Chirag Comm
v
Chitkara Comm
v
Classic Audio Video
v
Classic Business Cent
v
Classic Comm
v
Classic Elec
v
Classic Studio
v
Communicator
v
Comnet Comm
v
Computer Supermart
v
Consumex
v
Continental
v
Cosy Drycleaners
v
Cyber Comm
v
v
Dadu Communication
v
Darshan K Comm
v
Dass Comm
v
Dawar Telecom
v
DD Telecom
v
Deepak Electronics
v
Deepak Gift Emporium
v
Deepanjali
v
Depro Telecom
v
Dev Communication
v
Devender Comm
v
Dhingra Hello Point
v
Dhingra Prop
v
Diamond Communication
v
Dieno World
v
Digital World
v
Dilouq Mart
v
Dinesh Comm
v
Direct Team Network
v
Dixit Enterprises
v
Dixit Telecom
v
Dixsons
v
Dolphin Telecom
v
Donal Cafi
v
Duggal Taliors
v
Durga Mobile World
v
Efforts Mktg
v
v
Electronic Planet
v
Electronic Ways
v
Eveready House
v
Fancy Silk Store (Mukesh)
v
Point
v
Fone Gallery
v
Freedo
v
Friend’s Telecom
v
Friends
v
Friends Communication
v
Friends Marketing
v
Future Talk
v
G.K.Marketing
v
G.D.Electronics
v
G.S.Telecom
v
Intouch Comtech
v
Invitation Electronics
v
JMD Ent
As per web details
profile
The Company is a part of the internationally acclaimed Hutchison Whampoa
group, a diversified, multinational conglomerate with its origins dating back
to 1828 in Hongkong. The parent company, Hutchison Whampoa Limited, is a part
of the Li Ka- shing group of companies. It is one of the largest companies
listed on the
Telecommunications and e-commerce : One of the leading owners and
operators of telecommunications and internet infrastructure in around 17
countries worldwide.
Property and Hotels : Has an investment portfolio of approx 13.7 million
sq. ft. of commercial, office, industrial and residential premises.
Retail and manufacturing : Owns 3 major stores – Watsons, Fortress and
PARKnSHOP with more than 800 stores in the region. With the acquisition of the
Kruidvat Group of the
Energy, Infrastructure, Finance and Investments : Hong Kong and
In India, Hutchison Telecom operates its cellular services in 13 circles
: Orange in Mumbai and Hutch in Delhi, Karnataka, Andhra Pradesh, Chennai,
Kolkata, Gujarat, Haryana, Rajasthan, Uttar Pradesh (East), Punjab, West Bengal
and Sikkim and Uttar Pradesh (West). The Hutchison network covers almost 25% of
the national foortprint and 70% of national purchasing power, with a subscriber
base that now exceeds 6 million.
In
group profile
Hutchison
Wampoa Limited
Hutchison Wampoa Limited (HWL) is a leading international corporation
committed to innovation and technology with businesses spanning the globe. Its
diverse array of holdings range from some of the world’s biggest retailers to
property development and infrastructure to the most technologically-advanced
and marketing-savvy telecommunications operators.
HWL reports consolidated turnover of approximately HK$ 145 billion (US$
18660 million) and HK$ 81 billion (US$ 10,420 million) for the year ended 31st
March, 2003 and for the six months ended 30th June, 2004 respectively.
With operations in 42 countries and more than 170,000 employees worldwide,
Hutchison has five core businesses-ports and related services,
telecommunications, property and hotels, retail and manufacturing and energy
and infrastructure.
Hutchison Essar established its presence in
Hutchison Essar, under the Hutch brand, over the years, has been named
the 'Most Respected Telecom Company', the 'Best Mobile Service in the country',
and the 'Most Creative and Most Effective Advertiser of the Year'.
Hutchison Essar is now part of Vodafone - the world's leading international
mobile communications company. Vodafone now has operations in 26 countries
across 5 continents and 36 partner networks with about 225 million
proportionate customers worldwide. Vodafone has tied up with Essar as its
principal joint venture partner for the Indian operation.
The Essar Group is one of
*Figures from Cellular Operators Association of
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.40.82 |
|
|
1 |
Rs.81.18 |
|
Euro |
1 |
Rs.54.79 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
43 |
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 |
|