MIRA
INFORM REPORT
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Report Date : |
22.11.2008 |
IDENTIFICATION DETAILS
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Name : |
HELIOS AND MATHESON INFORMATION TECHNOLOGY LIMITED |
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Registered Office : |
Unit No. # 02-01, II Floor, Block 1, Phase1, Ascendas-Mahindra IT
Park, Mahindra City, SEZ, Chennai-603002, Tamilnadu |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
08.03.1991 |
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Com. Reg. No.: |
020443 |
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CIN No.: [Company
Identification No.] |
L65921TN1991PLC020443 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEE00398G |
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PAN No.: [Permanent
Account No.] |
AAACE0805A |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are listed on
stock exchange. |
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Line of Business : |
Subject is engaged in training, development and maintenance of
computer software |
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. |
Small |
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Maximum Credit Limit : |
USD 1200000 |
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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 established software development company having moderate
track and satisfactory performance. Trade relations are fair. Payments are reported as slow. However the company can be considered
normal for business dealings at usual trade terms and conditions with slight
caution. |
LOCATIONS
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Registered Office : |
Unit No. # 02-01, II Floor, Block 1, Phase1, Ascendas-Mahindra IT
Park, Mahindra City, SEZ, Chennai-603002, Tamilnadu |
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Tel. No.: |
91-44-43910000 |
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Fax No.: |
91-44-43910099 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. Chandra Ramesh |
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Designation : |
Director |
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Name : |
Mr. Diwakar Sai Yerra |
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Designation : |
Director |
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Name : |
Mr. Muralitrihna G K |
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Designation : |
Chief Executive Officer and Managing Director |
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Name : |
Mr. S K Patil |
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Designation : |
Director |
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Name : |
Mr. V Ramachandiran |
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Designation : |
Chairperson and Director |
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Name : |
Mr. S R Sistla |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. K M Kumar |
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Designation : |
Company Secretary |
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Audit Committee: |
Mr. Ramesh Chandra Mr. Diwakar Sai Yerra Mr. V Ramachandiran |
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Investors vices committees: |
Mr. Ramesh Chandra Mr. Diwakar Sai Yerra Mr. V Ramachandiran |
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Leasder shipteam : |
Ms. R Divya (M and A Strategy – healthcare practice) Mr. C S Ganesan (Global Share) Mr. K M Kumar ( Finance, Compliances and Legal Mr. G K Muralkrishna ( Chief Executive Officer) Mr. Pat Krishnan ( US Operations) Mr. Raman Pai (Global HR) Mr. N S Ravindra ( Architecture and Processes) Mr. V Sundaraman ( Corporate treasury) Mr. R N Suparna ( |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2008
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
8855680 |
38.31 |
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Foreign Institutional Investors |
1388645 |
6.01 |
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Indian Financial Institutions and banks |
136163 |
0.59 |
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Corporate body |
2559624 |
11.07 |
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Non resident Indians/ overseas Corporate bodies |
203156 |
0.88 |
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Public |
9710964 |
42.02 |
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Clearing member |
258097 |
1.12 |
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Total |
23112329 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in training, development and maintenance of
computer software |
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Products: |
·
Software Services ·
Software Development |
GENERAL INFORMATION
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Bankers : |
Not available |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Venkatesh and Company Chartered Accountant |
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Address : |
Chennai |
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Group Companies : |
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Associates/Subsidiaries : |
·
Maruthi Consulting Inc.USA ·
The Laxmi Group Inc, ·
Helios and Matheson it ( ·
Helios and Matheson Inc, ·
Helios and Matheson Inc, ·
Jayamaruthi Software Systems Limited ·
Helios and Matheson it (Somgapore) Pte. Limited |
CAPITAL STRUCTURE
As on 31.03.2008
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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40000000 |
Equity Shares |
Rs. 10/- each |
Rs. 400.000 Millions |
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10000000 |
Redeemable Preference Share |
Rs. 10/- each |
Rs. 100.000 Millions |
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Total |
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Rs. 500.000
Millions |
Issued Capital :
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No. of Shares |
Type |
Value |
Amount |
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23116429 |
Equity Shares |
Rs.10/- each |
Rs. 231.164
Millions |
Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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23112329 |
Equity Shares |
Rs.10/- each |
Rs. 231.123
Millions |
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 |
231.123 |
200.100 |
200.100 |
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2] Reserves & Surplus |
1588.021 |
832.233 |
465.700 |
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3] Advance Received towards subscription of redeemable preference
shares |
630.414 |
630.414 |
0.000 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
2449.558 |
1662.747 |
665.800 |
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LOAN FUNDS |
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1] Secured Loans |
240.116 |
331.296 |
302.800 |
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2] Unsecured Loans |
967.385 |
1314.352 |
130.000 |
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TOTAL BORROWING |
1207.501 |
1645.648 |
432.800 |
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DEFERRED TAX LIABILITIES |
136.416 |
102.314 |
0.000 |
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TOTAL |
3793.475 |
3410.709 |
1098.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1068.171 |
547.408 |
329.500 |
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Capital work-in-progress |
159.124 |
87.184 |
31.800 |
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INVESTMENT |
752.353 |
700.526 |
1293.900 |
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DEFERREX TAX ASSETS |
650.250 |
650.250 |
0.000 |
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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 |
704.913
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552.059 |
317.200 |
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Cash & Bank Balances |
395.914
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947.930 |
264.700 |
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Other Current Assets |
122.887
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96.922 |
0.000 |
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Loans & Advances |
135.285
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90.268 |
105.200 |
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Total
Current Assets |
1358.999
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1687.179 |
687.100 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
225.115
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301.429 |
1194.700 |
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Provisions |
0.000
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0.000 |
49.000 |
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Total
Current Liabilities |
225.115
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301.429 |
1243.700 |
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Net Current Assets |
1133.884
|
1385.750 |
[556.600] |
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MISCELLANEOUS EXPENSES |
29.693 |
39.591 |
0.000 |
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TOTAL |
3793.475 |
3410.709 |
1098.600 |
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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 |
2182.636 |
1835.095 |
1183.300 |
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Other Income |
0.000 |
0.000 |
24.400 |
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Total Income |
2182.636 |
1835.095 |
1207.700 |
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Profit/(Loss) Before Tax |
531.297 |
488.744 |
295.700 |
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Provision for Taxation |
39.484 |
30.248 |
27.600 |
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Profit/(Loss) After Tax |
491.813 |
458.496 |
268.100 |
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Earnings in Foreign Currency : |
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Export Earnings |
2019.152 |
1547.151 |
NA |
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Expenditures : |
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Power and Fuel Cost |
0.000 |
0.000 |
7.500 |
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Other Manufacturing Expenses |
0.000 |
0.000 |
661.000 |
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Employee Cost |
0.000 |
0.000 |
12.700 |
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Miscellaneous Expenses |
0.000 |
0.000 |
15.800 |
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Software services and Administrative
Expenses |
1470.893 |
1206.594 |
102.700 |
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Interest |
51.826 |
38.864 |
25.100 |
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Depreciation & Amortization |
128.620 |
100.893 |
87.200 |
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Total Expenditure |
1651.339 |
1346.351 |
912.000 |
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QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
|
30.06.2008 1st
quarter |
30.09.2008 2nd
Quarter |
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Sales Turnover |
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538.200 |
557.200 |
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Other Income |
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5.200 |
4.600 |
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Total Income |
|
543.400 |
561.800 |
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Total Expenditure |
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408.100 |
422.500 |
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Operating Profit |
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135.300 |
139.300 |
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Interest |
|
12.400 |
14.600 |
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Gross Profit |
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122.900 |
124.700 |
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Depreciation |
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44.300 |
46.200 |
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Tax |
|
18.200 |
16.400 |
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Reported PAT |
|
60.400 |
62.100 |
KEY RATIOS
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Debt-Equity Ratio |
1.00 |
1.22 |
0.62 |
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Long Term Debt-Equity Ratio |
1.00 |
1.22 |
0.62 |
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Current Ratio |
1.50 |
1.04 |
0.75 |
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TURNOVER RATIOS |
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Fixed Assets |
1.66 |
2.22 |
2.08 |
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Inventory |
0.00 |
0.00 |
0.00 |
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Debtors |
3.39 |
4.11 |
4.94 |
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Interest Cover Ratio |
10.66 |
12.75 |
12.78 |
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Operating Profit Margin(%) |
33.51 |
35.33 |
34.48 |
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Profit Before Interest And Tax Margin(%) |
27.48 |
29.69 |
27.11 |
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Cash Profit Margin(%) |
27.48 |
30.61 |
30.03 |
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Adjusted Net Profit Margin(%) |
21.45 |
24.96 |
22.66 |
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Return On Capital Employed(%) |
20.81 |
28.38 |
36.12 |
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Return On Net Worth(%) |
32.10 |
52.52 |
48.85 |
LOCAL AGENCY FURTHER INFORMATION
History:
Subject was originally incorporated in 1991 as Express Financial
Exchange Private Limited, a financial services company and became public
limited company in 5th September, 1995 named Express Financial Exchange
Limited. The company diversified into information technology and consequently
changed its name to Hellios & Matheson Information Technology Limited in
May' 1999 so as to truly reflect the main focus of the business before going
into public.
The company is an Information Technology company, having integrated operations
of Software Development, Education and IT Consulting. The focus is on
NetCentric computing specialising in intranet and internet based applications
and e-commerce and visual computing. Currently the company is not pursuing any
financial services business.
The first expansion project was funded by internal accruals. Further expansion
was met by term loan granted for Rs.5.000 Millions in 1997 from Bank of India
and based on the growth and success a second term loan of Rs.5.000 Millions was
sanctioned in 1998.
The company's development centre in Tamilnadu was inaugurated in April 1994.
The company has entered into an exclusive arrangement for academic back up and
technical guidance from Indian Institute of Technology, Chennai in 1996 for
framing of syllabus outline and details, preparation of course material,
orientation of faculty, consultancy in respect of PC based hardware and project
work of DOE courses. The company has alliance partnership with Novell for
Novell authorised education centre (NAEC) at
The company has obtained provisional accreditation from DOEACC/AICTE for
conducting Diploma in Computer Application course (`O' Level) at Pondicherry
and is in the process for obtaining accreditation for `A' and `B' Level
equivalent to B.Sc (Comp. Sc.), MCA and BTech (Comp. Sc.) The focus is on niche
areas and quality process.
During 2001-02 the company acquired 100% interest in System Logic
Solutions Limited in
Business
& Results of Operation:
Income for the year ended March 31, 2008 was Rs4063.382 Millions as
compared to Rs. 6955.567 Millions for the previous year. this is an increase of
2.73%.
Net profit after tax for the year ended march 31, 2008 was Rs.472.046
Millions vis-a-vis Rs. 599.770 Millions for fy 07.earnings per share was Rs.
20.40 as compared to Rs.29.97 for the previous year. a 13% appreciation of
rupee during the year combined with increase in cost of operations in
The company is among the leading global IT companies and continues to win new
engagements and grow existing relationships despite challenges in the
market.
The broad range of services in its portfolio enables the company to provide
end to end solutions to the clients. the company has realigned its operating
structures to suit ever changing client needs. this will help the company to
retain its position amidst growing competition globally.
Acquisition of the 3 vmoksha companies in
n the arbitration proceedings, in the share purchase transaction with
vmoksha, arguments have been completed and the final award is expected to be
announced.
As reported already, the company signed a definitive share purchase
agreement (spa) to acquire 100% equity in three vmoksha entities based at
They wish to reiterate that, based on its present knowledge of the facts
and as per legal opinion obtained the current arbitration proceeding will not,
in the opinion of management, have a material adverse effect on the results of
operations of helios and matheson.
Management
Discussion and Analysis:
Overview:
The financial statements have been prepared in compliance with the requirements
of the companies act, 1956, and generally accepted accounting principles (gaap)
in
Estimated global technology spend for 2007 (7.3 % growth over previous year)
was usd 1.7 trillion .of this usd 1.2 trillion (71 % of spend) was information
technology in addition to the technology spend, research and development (R
& D) and engineering spend was estimated for 2007 at usd 800 billion.
source: idc, nasscom in 'strategic review 2008'. some of the key industry
trends impacting growth in information technology spending are;
Trimming of operational costs to remain price competitive. increasing
regulatory compliance requirements. innovation led growth using technology to
improve time to-market. achieving business transformation in an increasingly
globalize world and increasing shortage of it skilled personnel in the
developed economies.
Fixed Assets:
·
·
Plant and Machinery
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Furniture and Fittings
·
Vehicles
As per Website:
Profile:
Commencing operations in 1991, helios and matheson has helped scores of
clients maximize the performance of their IT organizations with a powerful
suite of services driven by a seamless global delivery model.
they are headquartered in chennai,
Over time they have built a strong
they came out with the initial public offer (ipo) of equity in 1999. they are
listed in
Group Companies:
Helios and Matheson has established its worldwide presence through
opening subsidiaries in USA and Singapore and also strategic acquisitions made
of growing and dynamic infotech companies in USA, uk, canada, singapore &
India.
Helios and Matheson North America Inc., NY, USA (Nasdaq
Capital Market: hmna) is a 23 year old US company, listed since 1997, and
posted a topline of USD 26.4 mn in 2005. The IT Services and Solutions company
has a strong presence in the healthcare space. It is proud of its history of
successful long-term partnerships with clients, dating back to 1983, some
relationships have been ongoing for over 19 years. The Company's Solutions are
based on an understanding of each client's enterprise model. Helios and
Matheson North America's accumulated knowledge is applied to projects such as
planning, designing and implementing enterprise-wide information systems,
database management services, systems integration, legacy modernization and
conversion services. the company offers clients a compelling value proposition.
helios and matheson's strength is exponentially increased in the East Coast of
the
The Laxmi Group headquartered in
Maruthi Infotech was established in 1999 with a simple vision—to be
the trusted partner for clients requiring product development services, systems
integration, applications management and applications support. It delivers
solutions with a focus on achieving results that have a direct impact on the
profitability of clients. Since inception it has successfully assisted major
firms, with special focus on healthcare and insurance domain, in their
application development, internet development, applications management and
product development initiatives. Maruthi provides Offshore centric technology
outsourcing services for its clients which include Fortune 500 organisations,
through its unique delivery model (40-60-IT), world-class infrastructure and
quality processes. along with its offshore development arm Jayamaruthi Software
Systems, an ISO 9001:2000 Certified Company, has joined forces with helios and
matheson in 2004 to become a part of the group
Helios and Matheson Bangalore It Limited was started in 1996
with a state-of-the-art development facility in
Helios and Matheson has been incorporated in
Board of Directors:
Chandra Ramesh - Director
Ms. Chandra Ramesh is President of Armour Consultants Limited, a pioneer
in field of Insurance broking. She is a member of National Stock Exchange,
Diwakar Sai Yerra
– Director
Diwakar Sai Yerra
has rich experience in personnel & administration. He is widely travelled
and has been associated with international trade / exports for over 20 years.
He is an alumnus of the prestigious
muralikrishna g k
- chief executive officer and managing director
G. K.
Muralikrishna co-founded Helios and Matheson Information Technology Limited in
1991. Before this he had 15 years of Senior Level work experience in Marketing
& Commercial areas. Muralikrishna is primarily responsible for giving a
customer oriented focus to the organization. His strengths include team
building, and forging lasting relationship with institutional clients. Credit
for Helios and Matheson's growing list of satisfied clients goes to him. He is
a gold-medalist Graduate in Science with Post-Graduation in Business Management
from Indian Institute of Management, Ahmedabad.
Patil S K –
Director
S K Patil has 20 years
of experience in IT. As an expert in setting up large e governance projects,
his focus is to drive the benefits of Information and Communication
Technologies to governments and businesses in both emerging and established
markets. Mr. Patil holds an engineering degree and an MBA from IIM, Ahmedabad.
Ramachandiran V -
Chairman
V. Ramachandiran
started his career in professional service in 1976 with M/s. V. Sankar Aiyar
& Co., Chartered Accountants, Mumbai. He has co-founded Helios &
Matheson Information Technology Limited in the year 1991 and has since been
associated with promotion of the company's business. His professional
background has helped the company grow into a corporate that has strong
fundamentals and focus on enhancing shareholder value through consistent
profitable record.
Sistla S R - Air
Vice Marshal (Retd.) - Director
Air Vice Marshal S
R Sistla, VSM retired from the Indian Air Force after 35 years of rich and
varied experience in both technical and management areas. He was awarded the
Vishisht Seva Medal by the Honorable President of India in recognition of his
"distinguished service of an exceptional order".
HELIOS MATESON
INFORMATION TECHNOLOGY LIMITED
FINANCIAL RESULTS
BY COMPANIES OTHER THAN BANKS
(Rs. In Millions)
|
Particulars |
3 Months Ended |
|
|
30.09.2008 Unaudited |
|
Net Sales/ Income from Operations |
557.200 |
|
Other Income |
4.600 |
|
Total Income (1 +2) |
561.800 |
|
Expenditure |
|
|
Increase / decrease in stock in trade and
work in progress |
0 |
|
Consumption of raw materials |
0 |
|
Purchase of traded goods |
0 |
|
Employees Cost |
362.100 |
|
Depreciation |
46.200 |
|
Other Expenditure |
60.400 |
|
Total |
468.700 |
|
Interest |
14.600 |
|
Exceptional Items |
0 |
|
Profit (+) / Loss (-) from ordinary activities
before tax (3) –(4+5+6) |
78.500 |
|
Tax Expenses |
16.400 |
|
Profit (+) / Loss (-) form ordinary
activities after tax ( 7-8) |
62.100 |
|
Extraordinary items (net of tax expenses |
0 |
|
Net Profit (+) / Loss (-) for the period |
62.100 |
|
Paid up equity share capital (Face value Rs.
(9-10) |
231.100 |
|
Reserves excluding revaluation reserves as
per balance sheet of previous accounting year |
|
|
EPS before extraordinary items |
|
|
Basic EPS before extraordinary items |
0.269 |
|
Dilluted EPS before extraordinary items |
0.269 |
|
EPS After extraordinary items |
|
|
Basic EPS after extraordinary items |
0.269 |
|
Diluted EPS after Extra ordinary Items |
0.269 |
|
Public Shareholding |
|
|
Number of Shares |
14256649 |
|
Percentage of Shareholding |
61.68 |
Note:
- The above financial figures represent stand alone results
- EPS as at 30th September 2008 is after considering the
provision for deferred tax.
- Income includes revenue from Operations.
- Expenditure includes staff costs, selling and administrative costs
and development expenses
- The unaudited results (September 2008) were taken on record by the
Board of Directors on 31st October 2008
- The company recognizes software services as its primary segment
since its operations predominantly relate to services offerings spanning
the entire software services cycle, from application development and
integration to application life cycle management. In view of this,
software services revenues comprise the primary basis of segmental
information.
- Investor complaints pending at the beginning of the quarter
|
Received and disposed off during the
beginning of the quarter |
0 |
|
Pending at the end of the quarter |
0 |
|
Information and services received |
18 |
|
Information and services disposed off |
18 |
|
Pending at the end of the quarter |
Nil |
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.50.03 |
|
|
1 |
Rs.74.42 |
|
Euro |
1 |
Rs.67.71 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
39 |
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 |
|