MIRA
INFORM REPORT
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Report Date : |
13.12.2008 |
IDENTIFICATION
DETAILS
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Name : |
ALLIED DIGITAL SERVICE PRIVATE LIMITED |
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Registered Office : |
3rd Floor, Kimmatrai Building, 77/ 79, Maharshi Karve Marg,
Marine Lines, Mumbai - 400022, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
10.02.1995 |
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Com. Reg. No.: |
085488 |
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CIN No.: [Company
Identification No.] |
L72200MH1995PLC085488 |
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Legal Form : |
A Public Limited Liability Company. The Company’s Share are Listed on
Stock Exchange. |
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Line of Business : |
Subject is a IT Infrastructure management and technical support
services outsourcing company. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 9050000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having satisfactory
track. Trade relations are fair. Business is active. General financial position
is good. Payments are reported as usually made as per commitments. |
INFORMATION
DECLINED BY
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Name : |
Mr. Vijay |
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Designation : |
Account Manager |
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Date : |
12.12.2008 |
LOCATIONS
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Registered Office/ Corporate Office : |
3rd Floor, Kimmatrai Building, 77/ 79, Maharshi Karve Marg,
Marine Lines, Mumbai - 400022, Maharashtra, India |
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Tel. No.: |
91- 22- 22002020/ 22074951 (6 Lines) |
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Fax No.: |
91- 22- 22064170 |
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Support Hotline : |
91- 22- 22000142 |
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E-Mail : |
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Website : |
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Overseas Office : |
Allied Digital Australia Private Limited Quantum House Level 8, 49- 51 York Street, Sydney NSW 2000 |
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Tel. No.: |
+61- 2- 80880787 |
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Fax No.: |
+61- 2- 80880799 |
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Branch Office 1 : |
Software Development Centre Millennium Business Park, Building No.3, Unit No.4, Sector No.3,
Mahape Village, MIDC, Navi Mumbai – 400701, Maharashtra, India |
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Tel. No.: |
91- 22- 27781545 |
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Branch Office 2 : |
375, JSS Road, Vidhyut Building, 5th Floor, Chirabazar,
Charni Road (East), Mumbai - 400004 |
DIRECTORS
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Name : |
Mr. Nitin Shah |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Prakash Shah |
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Designation : |
Executive Director and CFO |
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Name : |
Mr. Manoj Shah |
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Designation : |
Executive Director and CFO |
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Name : |
Mr. Om Prakash Chawla |
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Designation : |
Non Executive Director |
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Name : |
Mr. Shrikant Parikh |
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Designation : |
Non Executive Director |
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Name : |
Mr. Shailesh Vaidya |
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Designation : |
Non Executive Director |
KEY EXECUTIVES
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Name : |
Mr. Ravindra V Joshi |
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Designation : |
Company Secretary |
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Name : |
Mr. Vijay |
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Designation : |
Account Manager |
BUSINESS DETAILS
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Line of Business : |
Subject is a IT Infrastructure management and technical support
services outsourcing company. |
GENERAL
INFORMATION
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No. of Employees : |
1800 |
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Bankers : |
Not Available |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Not Available |
CAPITAL STRUCTURE
AS ON 31.03.2008
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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25000000 |
Equity Shares |
Rs. 10/- Each |
Rs.250.000
Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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17369726 |
Equity Shares |
Rs. 10/- Each |
Rs.173.697 Millions |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
172.900 |
127.700 |
47.400 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1637.100 |
459.300 |
205.900 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1810.000 |
587.000 |
253.300 |
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LOAN FUNDS |
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1] Secured Loans |
107.200 |
72.900 |
78.700 |
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2] Unsecured Loans |
50.000 |
6.700 |
6.600 |
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TOTAL BORROWING |
157.200 |
79.600 |
85.300 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1967.200 |
666.600 |
338.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
162.300 |
67.300 |
16.900 |
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Capital work-in-progress |
40.100 |
36.600 |
0.000 |
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INVESTMENT |
474.600 |
28.900 |
1.500 |
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DEFERREX TAX ASSETS |
49.700 |
12.900 |
10.700 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
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0.000 |
0.000 |
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Sundry Debtors |
1480.100
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596.300 |
290.600 |
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Cash & Bank Balances |
69.700
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29.400 |
26.800 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
254.600
|
133.700 |
102.700 |
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Total
Current Assets |
1804.400
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759.400 |
420.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
221.600
|
94.500 |
64.400 |
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Provisions |
342.300
|
144.000 |
47.500 |
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Total
Current Liabilities |
563.900
|
238.500 |
111.900 |
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Net Current Assets |
1290.200
|
533.800 |
318.900 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
1.300 |
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TOTAL |
1967.200 |
666.600 |
338.600 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
2973.800 |
1560.300 |
884.700 |
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Other Income |
37.800 |
1.700 |
5.200 |
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Total Income |
3011.600 |
1562.000 |
889.900 |
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Profit/(Loss) Before Tax |
646.600 |
312.200 |
160.100 |
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Provision for Taxation |
211.000 |
82.900 |
39.500 |
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Profit/(Loss) After Tax |
435.600 |
229.300 |
120.600 |
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Expenditures : |
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Manufacturing Expenses |
0.800 |
1.200 |
0.800 |
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Administrative Expenses |
70.500 |
63.500 |
39.600 |
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Raw Material Consumed |
2042.300 |
1033.400 |
585.900 |
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Power & Fuel |
4.100 |
2.100 |
2.000 |
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Depreciation & Amortization |
32.900 |
8.600 |
5.600 |
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Other Expenditure |
214.400 |
141.000 |
95.900 |
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Total Expenditure |
2365.000 |
1249.800 |
729.800 |
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QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
30.06.2008 |
30.09.2008 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
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Sales Turnover |
|
896.400 |
1029.100 |
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Other Income |
|
5.600 |
31.200 |
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Total Income |
|
902.000 |
1060.300 |
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Total Expenditure |
|
675.000 |
795.300 |
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Operating Profit |
|
227.000 |
265.000 |
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Interest |
|
4.500 |
4.400 |
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Gross Profit |
|
222.500 |
260.600 |
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Depreciation |
|
8.800 |
9.200 |
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Tax |
|
57.100 |
36.500 |
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Reported PAT |
|
156.600 |
214.900 |
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Debt-Equity
Ratio |
0.10 |
0.20 |
0.49 |
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Long
Term Debt-Equity Ratio |
0.03 |
0.02 |
0.24 |
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Current
Ratio |
2.71 |
2.43 |
2.48 |
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TURNOVER
RATIOS |
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Fixed
Assets |
18.37 |
22.81 |
24.37 |
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Inventory |
95.01 |
132.23 |
78.29 |
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Debtors |
2.86 |
3.52 |
4.55 |
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Interest
Cover Ratio |
47.86 |
29.38 |
21.01 |
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Operating
Profit Margin(%) |
23.31 |
21.27 |
19.63 |
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Profit
Before Interest And Tax Margin(%) |
22.21 |
20.71 |
19.00 |
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Cash
Profit Margin(%) |
15.75 |
15.25 |
14.26 |
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Adjusted
Net Profit Margin(%) |
14.65 |
14.70 |
13.63 |
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Return
On Capital Employed(%) |
50.15 |
64.39 |
73.73 |
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Return
On Net Worth(%) |
36.35 |
54.58 |
78.49 |
LOCAL AGENCY
FURTHER INFORMATION
BIODATA
Subject is a leading IT Infrastructure management and Technical Support Services outsourcing Company. They enable global, large and medium enterprises and service providers to reduce their total cost of ownership using a combination of onsite and remote services. They deliver strategic, personalized, full-service Technical Support services solutions with quality, value and commitment to total customer satisfaction.
Subject was incorporated as Subject on February 10, 1995. The company purchased
Digital Data Services, a partnership firm on April 1, 1995. In the same year,
they entered into Multimedia and Graphics by tying up with Compaq Computers and
Creative Multimedia. They acquired the most prestigious contract of maintenance
of Air India's Travel Agent Network continuously for five years from
1996.
In the year 2000, the company executed the Solaries support project for Psi-Net
to support their Infrastructure at UK. This was the first outsourced overseas
contract. In the year 2003, they formed Alam Digital in Yemn, to cater the
Middle East oppurutnities. Also, they joined with IBM Global and HP Services
for their outsourcing projects.
In the year 2004, the company was appointed as Authorised Support Partner for
Unisys to manage Dell Support, Cisco, Nortel, Blue Arc etc. The company
executed Asia's largest wireless infrastructure project for Reliance Infomm.
They made a joint venture agreement with CNT International, Srilanka and formed
Allied CNT to focus on security solutions from checkpoint, stonegate,
websense.
In the year 2006, the company made a strategic alliance with e-Cop, Singapore
for setting up security operation center in India and with Ericaom, a Israel
based company for on-demand access solutions. In the same year, the company was
converted into a public limited company. In the year 2007, they made strategic
tie up with Echelon to foray into Intelligent Building Management and Energy
Management Solutions.
The company was rated as one of the Top 3 TPM Houses of India in the year 1998.
In 1999, they got ISO 9001:2000 certification. In the year 2001, they have been
given Distinguished Partener award for Unix by HP. In the year 2005, they have
been awarded CRN gold Trophy for their 3 initiatives. In May 2008, the compnay
received 'Company of the Year 2008' award from CRN India.
In June 2008, GMR Projects awards contract to the company for state-of-art-
toll naka project. In July 2008, the company acquired 80.5% stake in US based
En Pointe Global Service which is in the business of IT Infrastructure
Management/ Remote Management Services provider. Also they icorporated a wholly
Owned Subsidiary in the State of Delaware, USA by the name Allied Digital Inc.
Business
Performance
The Company is an IT infrastructure management and technical support services
outsourcing Company. It has over two decades of experience in technology and
enterprise IT infrastructure implementation, management and consulting on
complex IT and business systems for global businesses. Over 1800 committed
professionals from different managerial and engineering backgrounds, and
operating across 132 locations in India.
For the year ended March 31st 2008 their total income increased to Rs.301158.9
Millions from Rs.156196.3 Millions over the previous year at a growth rate of
92.80%. Operating income grew to Rs.297382.2 Millions from Rs.156028.5 Millions
at a growth rate of 90.59%. Profit after Tax stands at Rs.43559.3 Millions as
against Rs.22927.8 Millions for the previous year, thus showing an increase of
89.98%. The Company could make this possible because of its conscious efforts
in transforming itself from a 'system integrator' to a 'managed services
provider'. They have widened their service offering and focus on services which
are high in the value chain.
During the year under consideration, the Company has successfully launched its
Remote Management Services at the Company's Remote Management Services Centre
at Millennium Business Park, Mahape, Navi Mumbai which is now fully
operational.
As a part of their commitment to increase their reach in newer markets, the
Company has started its liasioning offices in Sydney (Australia) and New Jersey
(United States of America).
During the year under consideration, the Company has signed the 'End User
License Agreement' with SAP India Limited for SAP licenses for its internal
implementation. The Company is targeting to go live on SAP in December 2008.
This will help the Company to further improve its internal control systems and
procedures.
Initial Public Offering (IPO)
The Company made an Initial Public Offering in the month of July 2007 and
received an overwhelming response from investors. The issue was subscribed at
60.88 times of issue size. In this IPO the Company has issued 45,22,435 equity
share with a face value of Rs.10 each at a premium of Rs.180/- per share thus
raising Rs.85926.3 Millions. The issue constituted 26.16% of fully diluted post
issue paid up share capital of the Company. The shares were listed for trading
with Bombay Stock Exchange and National Stock Exchange on July 25th 2007.
Strategic
Acquisition
On April 10th 2008 the Company entered into a 'Share Purchase cum Subscription
and Shareholder's Agreement' for the purchase and subscription of 51.05% fully
paid up equity shares of Digicomp Complete Solutions Private Limited.
Digicomp, incorporated in the year 2001, operating out of 17 offices across the
country and more than 300 professionals on board, is engaged and specialized in
the business of end to-end technical support, customer care, warranty services,
helpdesk services, project roll-outs, etc. This acquisition will help the
Company to strengthen its 'Technical Business Process Outsourcing' (TBPO)
offering in the coming years.
On July 9th '2008 the Company has entered into a 'Limited Liability Company
Interest Purchase Agreement' to acquire 80.5% stake in En Pointe Global
Services, LLC, (EPGS) which was a services arm and wholly owned subsidiary of
En Pointe Technologies Sales Inc., (A subsidiary of En Pointe
Technologies).
En Pointe Technologies is a NASDAQ listed Company with revenues exceeding USD.
340 million. This acquisition is expected to strengthen the opportunity
pipeline for the Company in the US market for its Remote Service offerings. The
acquired entity shall also be helpful as a platform for several other inorganic
growth initiatives across the globe. This acquisition underlines their commitment
to expand geographically in the IT infrastructure management domain. The fact
that En Pointe Global Services, LLC is a well-established Company serving the
US market, gives them a ready base to expand their presence and leverage on the
tremendous cross selling opportunity in Remote Management Services and Managed
Security segment in the USA.
Change in Share Capital
During the year, the Company allotted 45,22,435 Equity Shares of Rs. 10/-each through
Initial Public Offer to various applicants and thus the Paid-up Equity Share
Capital of the Company increased from Rs.127.673 Millions to Rs.172.897
Millions
Change of Registered Office
The Company shifted its Registered Office from 375, J.S.S Road, Vidyut
Building, 5th Floor Charni Road, Mumbai 400 002 to 3rd Floor, Kimatrai Building
77/79, Maharashi Karve Marg, Marine Lines Mumbai 400 002 with effect from
August 18th 2007.
Human Resources
Their Company has acquired an invaluable technical and business knowledge over
the years as an organization in LT Services. During the year they have seen a
substantial increase in the business volume and their Company total employee
strength has increased by 56.40%.
They believe that to enhance the market presence of the Company, it is
important that new personnel entering the organization are highly skilled,
qualified and emotionally attached to the organization. The rollout of this
initiative has been extremely well received by the target audience and also by
customers, opinion leaders and the media.
They have also set up a scalable recruitment and human resource management
process which enables them to attract as well as retain high calibre employees.
With over 1800 employees, the Company is emerging as a truly global firm with a
diverse employee base. This heterogeneous base is central to sustaining the
Company's competitive edge and they continue to remain an employer of choice in
their industry.
In their Company the key focus has been to change the mindset from 'Human
resource utilization' to 'Nurturing and leveraging Talent'.
Employee engagement remains a key focus of HR initiatives undertaken by their
Company. The Company helps employees to build new skills and competencies and
also promotes knowledge sharing and team building.
Environment, Health and Safety (EHS) has gained relevance as a new management
discipline in recent times. In order to improve its performance in the EHS
domain, the Company decided to provide a corporate focus by creating a new team
called 'Environment, Health and Safety.' The EHS team will be responsible for
creating standards and conducting workshops to sensitize all employees and
business partners on the EHS norms to be followed in the course of business.
Their culture of harmonious and constructive relations between the management
and employees helped them maintain a cordial work atmosphere and achieve
business growth.
Teamwork acts as a fuel and drives ordinary people to achieve extra-ordinary
results.
Teamwork, defined as the ability to work together towards a common vision, is
an essential culture to imbibe in a Company; especially for a service delivery
firm as it helps meet tight deadlines, pools different competencies and skills
together to deliver projects, distributes risk management and builds and
enhances the knowledge base of a Company.
They always look at their business through the lens of their customer and map
out their operating mechanisms to ensure that each of their managers are geared
and focused around delivering business results. Their managers endeavor to get
people to commit and deliver a common set of goals with the values of their
Company culture - developing relationships, information sharing and decision
making which is key to ensure delivery of commitments to each customer.
Quality
The Company has meticulously laid down quality processes within the
organization. The Company has been conferred with ISO 9001:2000 certification
since 1999 which is a recognition of their stringent adherence towards the
quality initiatives taken by them. In addition the Company has also adapted to
the ITIL best practices aligning their service delivery mechanism to BS 15000
standards.
Corporate Governance Policy
Allied Digital defines Corporate Governance as a systematic process by which
Companies are directed and controlled to enhance their wealth - generating
capacity. Since large corporations employ a vast quantum of Societal resources,
they believe that the governance process should ensure that these resources are
utilised in a manner that meets stakeholders' aspirations and societal
expectations. The Company has always practiced Corporate Governance of the
highest standards. The Company manages its affairs with diligence, transparency,
responsibility and accountability and believes in maintaining superior
standards of corporate conduct towards its employees and society.
The Directors have reported the initiatives on Corporate Governance adopted by
the Company. The same is included in the section 'Corporate Governance' in this
Annual Report.
MANAGEMENT DISCUSSION
AND ANALYSIS
Global Overview
The worldwide IT services market includes multiple segments such as application
development and integration, IT infrastructure management and support and
software support and consulting. According to National Association of Software
and Service Companies (NASSCOM) estimated global technology spend for 2007
(7.3% growth over previous year) was USD 1685 billion, of this, USD 974 billion
(58% of spend) was Information Technology Services and Hardware.
Huge Market Potential
Besides this, analyzing specifically for IT infrastructure management services
(IMS),the global IMS market is estimated to be worth USD 97 billion in 2007. On
an average, 50-60 per cent of IMS activities can be carried out from remote
locations. This translates into a potential market size of USD 50-55 billion
for Indian players, which is virtually untapped. India's share in world IMS
spend is minimal compared with the size of its spend in other service lines
such as application development and maintenance.
Increasing complexity of IT
infrastructure
In today's complex business environment, there is growing intricacy in IT
infrastructure. In such a scenario, infrastructure management is a complex
domain requiring constant attention. Outsourcing this domain would enable
enterprises to focus on their core businesses while allowing the vendors to do
what they do best. i.e. to manage infrastructure.
Need for consolidation at the client
end
With a growing number of components involved, there is a need to consolidate IT
infrastructure. Large MNCs, which require streamlining of several heterogeneous
infrastructure devices, need transformation plans with least possible
disruption to business functions. Improving telecom infrastructure As IMS is a
real-time operation, providing IMS from remote locations requires excellent
telecom bandwidth and stability. In the past three years, there has been a vast
improvement in the telecom infrastructure in India, which has facilitated the
rollout of IMS by Indian players.
Moving up the value chain
Indian IT players are now targeting IMS as one of their growth driver, as
growth opportunities in other areas are slowing down.
Increased regulatory/compliance
requirement
Going forward increased compliance requirement globally like BASEL II, HIPPA
and SOX will be a major growth driver for Managed Security Services and
compliance reporting.
As per the NASSCOM Strategic Review 2008, over the next four years, global
technology spends is expected to cross USD 2000 billion, growing at a
Compounded Annual Growth Rate (CAGR) of 5.6% and outpacing GDP growth in most
developed countries. The forecasts for the components of this global technology
spend for 2007 and 2011 period along with the CAGR over this period is shown in
Chart below. Healthy growth in the overall spending for technology in the
markets of interest is expected to continue
Business And Company
Overview
The Company is one of the leading players in the Indian IT Industry, providing
wide spectrum of Technology Solutions and Services to a diverse customer base.
Operating across a network of 132 locations (direct presence) across the
country and with a team of over 1800 employees country-wide, the Company has
the ability to provide customers with a blend of optimal functionality, value
for money, commitment and flexibility.
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.48.71 |
|
UK Pound |
1 |
Rs.72.85 |
|
Euro |
1 |
Rs.64.70 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|