MIRA
INFORM REPORT
|
Report Date : |
04.10.2008 |
IDENTIFICATION DETAILS
|
Name : |
TATA SKY LIMITED |
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Formerly Known As : |
SPACE TV PRIVATE LIMITED |
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Registered Office : |
3rd Floor, Bombay Dyeing Building, Pandurang Budhkar, Worli, Mumbai-400025, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
09.01.2001 |
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Com. Reg. No.: |
11-130365 |
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CIN No.: [Company
Identification No.] |
U92120MH2001PTC130365 |
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TAN No.: (Tax Deduction
& Collection Account No.) |
MUMS33388F |
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PAN No.: (Permanent Account No.) |
AAGCS9294M |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
To provide direct-to-home (DTH) broadcasting services to cable TV viewers across the country. |
RATING &
COMMENTS
|
MIRA’s Rating : |
B |
RATING
|
STATUS |
PROPOSED
CREDIT LINE |
|
|
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 50000000 |
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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 joint venture of Tata and Star Television. Available information indicates high financial responsibility of the company since the promoters are strong. Trade relations are fair. Payments are correct and as per commitments. The company is entering into a new untapped market of DTH (Direct To Home Television). Payments are correct and as per commitments. The company can be considered good for normal business dealings. |
LOCATIONS
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Registered Office : |
3rd Floor, Bombay Dyeing Building, Pandurang Budhkar, Worli, Mumbai-400025, Maharashtra, India |
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Tel. No.: |
91-22-66133000 |
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Fax No.: |
91-22-66133030 |
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E-Mail : |
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Website : |
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Corporate Office : |
Bansiwala Mill Compound, Off Dr. E Moses Road, Mahalaxmi, Mumbai –
400011, Maharashtra, India |
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Tel. No.: |
91-22-56305555 |
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Fax No.: |
91-22-56669609 |
DIRECTORS
|
Name : |
Mr. Kaushik G. Kaushik |
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Designation : |
Managing Director |
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Address : |
Sanghi House, 5th Floor, 94 Napean Sea Road, Mumbai – 400006, Maharashtra, India |
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Date of Birth : |
17.09.1950 |
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Date of Appointment : |
01.01.2006 |
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Name : |
Mr. Farokh Nariman Subedar |
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Designation : |
Director |
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Address : |
Wadia Building, Ground Floor, Babulnath Road, Mumbai-400007, Maharashtra, India |
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Date of Birth : |
24.09.1955 |
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Date of Appointment : |
06.02.2004 |
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Name : |
Mr. Bharat Damodar Vasani |
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Designation : |
Director |
|
Address : |
Flat No. B-11, Peregrine 400, Veer Savarkar Marg, Prabhadevi, Mumbai-400025, Maharashtra, India |
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Date of Birth : |
24.08.1958 |
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Date of Appointment : |
06.02.2004 |
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|
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Name : |
Mr. Pratim Mukerjea |
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Designation : |
Director |
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Address : |
18, Marlow Building, Plot No.62B, Pochkhanwala Road, Worli, Mumbai-400030, Maharashtra, India |
|
Date of Birth : |
21.11.1955 |
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Date of Appointment : |
29.06.2006 |
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|
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Name : |
Mr. Ishaat Riyasat Hussain |
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Designation : |
Director |
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Address : |
Flat No.222, 2nd Floor, B Wing, NCPA, Residential Apartments, Sir Dorab Tata Road, Nariman Point, Mumbai-400021, Maharashtra, India |
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Date of Birth : |
02.09.1947 |
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Date of Appointment : |
06.02.2004 |
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|
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Name : |
Mr. Michelle Lee Guthrie |
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Designation : |
Director |
|
Address : |
20, Kadoorie Avenue, Kowloon, Hong Kong |
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Date of Birth : |
12.10.1965 |
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Date of Appointment : |
01.06.2004 |
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|
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Name : |
Mr. May Yin Oh |
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Designation : |
Director |
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Address : |
5/C, Vienna Court, 41, Conduit Road, Midlevels, Hong Kong |
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Date of Birth : |
14.08.1968 |
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Date of Appointment : |
06.08.2005 |
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Name : |
Mr. Nitin Raghuwar Swaroop Atroley |
|
Designation : |
Director |
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Address : |
E63, Vasant Marg, Vasant Vihar, New Delhi-100057, New Delhi, India |
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Date of Birth : |
26.04.1966 |
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Date of Appointment : |
20.10.2005 |
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Date of Ceasing : |
31.10.2005 |
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|
Name : |
Mr. Vikram Kaushik |
|
Designation : |
Managing Director |
|
Address : |
Sanghi House, 5th Floor, 94, Napean Sea Road, Mumbai-400006, Maharashtra, India |
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Date of Birth : |
17.09.1950 |
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Date of Appointment : |
01.01.2006 |
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Other Directorships : |
Hathway Cable and Datacom Private Limited Media Content and Communications Services (India) Limited |
KEY EXECUTIVES
|
Name : |
Mr. Nariman Khan |
|
Designation : |
Company Secretary |
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Address : |
3-A, Sonawalla Building,
Tardeo, Mumbai-400007, Maharashtra, India |
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Date of
Birth/Age : |
09.08.1954 |
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Date of
Appointment : |
01.09.2005 |
MAJOR SHAREHOLDERS
(As on
29.06.2006)
|
Names of
Shareholders |
No. of Shares |
|
|
|
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Tata Sons Limited |
312312000 |
|
Network Digital
Distribution Services |
142428000 |
|
|
|
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Total |
454740000 |
(As on 31.03.2008)
|
Category |
Percentage |
|
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Foreign Holding
(FIIs, FCs, FFI, NRIs, OCBs, or Others) |
30.00 |
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Bodies Corporate |
70.00 |
|
|
|
|
Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
To provide direct-to-home (DTH) broadcasting services to cable TV viewers across the country. |
GENERAL
INFORMATION
|
Bankers : |
Andheri Corporate Banking Branch, MDI Building 1st Floor, 28 S V Road, Andheri (West), Mumbai – 400058, Maharashtra, India |
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|
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Banking Relations
: |
Satisfactory |
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Auditors : |
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|
Name : |
S. R. Batliboi and Associates Chartered Accountants |
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Address : |
6th Floor, Express Tower, Nariman point, Mumbai-400021, Maharashtra, India |
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Name : |
A. F. Ferguson and Company Chartered Accountants |
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Address : |
Maker Tower ‘E’, Cuffe Parade, Mumbai-400005, Maharashtra, India |
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Holding Company : |
U99999MH1917PLC000478 |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
(As on 30.09.2008)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000000 |
Equity Shares |
Rs.10/- each |
Rs.10000.000
millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
652080000 |
Equity Shares |
Rs.10/- each |
Rs.6520.800
millions |
|
|
|
|
|
(As on 31.03.2008)
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
617760000 |
Equity Shares |
Rs.10/- each |
Rs.6177.600
millions |
|
|
|
|
|
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
6177.600 |
4504.500 |
1951.950 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4547.400 |
1201.200 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
(709.768) |
|
NETWORTH
|
10725.000 |
5705.700 |
1242.182 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
6787.576 |
3350.633 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
119.185 |
0.000 |
|
TOTAL BORROWING
|
6787.576 |
3469.818 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
17512.576 |
9175.518 |
1242.182 |
|
|
|
|
|
|
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
2989.083 |
2876.277 |
20.351 |
|
Capital work-in-progress
|
418.266 |
331.299 |
1096.503 |
|
|
|
|
|
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INVESTMENT
|
145.961 |
741.244 |
239.912 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS &
ADVANCES
|
|
|
|
|
|
|
Inventories
|
102.111
|
76.628
|
0.000
|
|
|
Sundry Debtors
|
89.757
|
47.796
|
0.000
|
|
|
Cash & Bank Balances
|
303.824
|
170.955
|
36.110
|
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances
|
1321.792
|
1221.901
|
370.628
|
Total Current Assets
|
1817.484
|
1517.280
|
406.738
|
|
Less :
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
4814.315
|
4764.205
|
513.020
|
|
|
Provisions
|
571.700
|
393.858
|
8.302
|
Total Current Liabilities
|
5386.015
|
5158.063
|
521.322
|
|
Net Current Assets
|
(3568.531)
|
(3640.783)
|
(114.584)
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
Others
|
17527.797 |
8867.481 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
17512.576 |
9175.518 |
1242.182 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
|
|
31.03.2006 |
Sales Turnover [including other
income]
|
|
|
10.879 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
|
|
(525.110) |
Provision for Taxation
|
|
|
6.620 |
Profit/(Loss) After Tax
|
|
|
(531.730) |
|
|
|
|
|
Total Expenditure
|
|
|
535.990 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
31.03.2006 |
PAT / Total Income
|
(%)
|
NA
|
NA |
(4887.67) |
|
|
|
|
|
|
Net Profit Margin
(PBT/Sales) |
(%) |
NA
|
NA |
(4826.82) |
|
|
|
|
|
|
Return on Total Assets
(PBT/Total
Assets} |
(%) |
NA
|
NA |
(122.95) |
|
|
|
|
|
|
Return on Investment (ROI)
(PBT/Networth) |
|
NA
|
NA |
0.42 |
|
|
|
|
|
|
Debt Equity Ratio
(Total
Liability/Networth) |
|
1.14
|
1.51 |
0.42 |
|
|
|
|
|
|
Current Ratio
(Current
Asset/Current Liability) |
|
0.34
|
0.29 |
0.78 |
LOCAL AGENCY
FURTHER INFORMATION
Note:
The Regiseterd office of the
company has been shifted from Army and Navy Building, 148, Mahatma
Gandhi Road, Mumbai-400001, Maharashtra, India, to the present address w.e.f.
29.05.2006
Form 8:
|
Corporate
identity number of the company |
U92120MH2001PTC130365 |
|
Name of the
company |
TATA SKY LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
3rd Floor, Bombay Dyeing Building, Pandurang Budhkar, Worli, Mumbai-400025, Maharashtra, India |
|
This form is for |
Creation of charge |
|
Type of charge |
Book Debts Movable Property |
|
Particular of
charge holder |
Bank of India Andheri Corporate Banking Branch, MDI Building 1st Floor, 28 S V Road, Andheri (West), Mumbai – 400058, Maharashtra, India |
|
Nature of
instrument creating charge |
Supplemental
Deeds of Hypothecation |
|
Date of
instrument Creating the charge |
23.06.2008 |
|
Amount secured by
the charge |
Rs.3000.000
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of
Interests: 12.25% p.a. with
Monthly rests Terms of
Repayment: Bullet Payment on
12 months from first draw down Margin: As applicable Extent and
operation of the charge: Pari passu charge
by way of hypothecation on all borrowers machines and plant, movable assets
and stock, both present and future, and all receivables of the projects to
the extent of Rs.1000.000 Millions and such other movable as may be agrees by
the Banks |
|
Particulars of
the property charged |
All the present
and future movable fixed assets at Uplink Center at Delhi and IT Support,
Bangalore. Other asset at various locations all over India (Broadcast IT Equipment Downlink
Equipment, monitoring equipment etc, set top boxes, cables, connectors,
splitters, LNB etc, at various location and all receivables of the projects
to the extent of Rs.1000.000 Millions |
Fixed Assets:
- Office equipment
- Computer Equipment
Website Details:
Company Overview:
Subject provides satellite television broadcasting services
in India. The company offers programming and interactive services. It provides
various channels, such as entertainment, sports, movies, music, news, and
documentaries. Subject was incorporated in 2004 as Space TV Limited and changed
its name to Company in 2005. The company is based in Mumbai, India. Company is
a subsidiary of Tata Sons Limited.
Revolutionise television viewing
Subject is set to revolutionize television viewing in India through its
superior digital quality picture and sound. The service aims to empower the
Indian viewer with Choice, Control and
Convenience through its
wide array of programming choices and interactive features. Subject offers viewers a
variety of channels ranging from entertainment, sports, movies and music to
news and documentaries in DVD picture quality and CD quality sound.
Extensive Customer Service Network
Subject has established
an extensive customer service network across the country. It has engaged a field
force of approximately 3000 service engineers who are complemented by high-end
24x7 call centers, manned by multi-lingual customer service associates, trained
to solve all customer problems.
Subject takes
direct responsibility for installing and servicing the hardware at every
subscriber's home, thereby ensuring the highest levels of customer service.
Subject retails its
hardware and prepaid recharge vouchers through popular consumer electronic
stores to enhance customer convenience.
Offering
In addition to new channels and
exciting interactive features, Subject
offers all popular television channels, thus becoming a one-stop shop for all
the television entertainment needs of customers.
Partners
Subject has invested in
state-of-the-art digital infrastructure and has partnered with global leaders
in digital technology for the pay television market.
Satellite:
Subject
has leased all 12 Ku-Band
transponders on ISRO’s Indian satellite, INSAT 4A, the most advanced and
high-powered KU-Band communication satellite in the region, developed keeping
in mind local requirements. The satellite enables Subject to offer superior picture and sound quality with a wider
range of channels.
Business Support Software:
NDS: Subject has
partnered with NDS, the leading provider of technology solutions for pay
television. NDS systems has played a key role in the end-to-end system
architecture and launching the nationwide digital service. The NDS Video Guard
conditional access solution provides superior broadcast security, and enables
Subject to offer multiple programming and pricing packages.
Siebel: Subject has
selected Siebel, leaders in Customer Relationship Management (CRM) software, to
support operations across the areas of call centre and field service operations,
customer order management and product configuration.
Kenan: Comverse’s Kenan FX billing software has been selected to support
billing for all residential, institutional and commercial customers. The Kenan
software has been enhanced specifically for Subject, to support a first in industry pre-paid billing
capability which will provide customers convenient payment options.
SAP: SAP the leading Enterprise Resource Planning (ERP) application
suite, has been selected by Subject to
support the company’s materials management, sales and distribution, finance and
control and human resources requirements.
IT:
Sun Microsystems: Subject has
selected Sun Microsystems to provide world-class technology infrastructure,
which helps the company to deliver high-level service standards for its
Satellite Television service. The servers ensure maximum up-time, fault
recovery and load management. Sun has also provided Subject with installation,
engineering expertise and support.
Digicomp:
Subject has partnered
with Thomson and Humax, world leaders in digital broadcast technology for
building top-of-the line digicompsTM, customised specifically for the Indian
markets. The technology’s feature rich design enables Subject to deliver multiple programming, pricing packages
and interactive services to its customers.
Incorporated in 2004, Subject is
an 80:20 Joint Venture between TATA and STAR. Subject endeavours to offer Indian viewers a world-class
television viewing experience through its Satellite Television service.
The SKY brand, owned by the UK-based British Sky Broadcasting Group, brings to Subject the reputation of more
than 20 years experience of satellite broadcasting. SKY is well known for the
innovative products and services launched by BSkyB, such as DTH broadcasting in
1989, digital satellite broadcasting in 1998, interactive television services
in 1999 and the SKY+ personal video recorder in 2001. Subject joins an international group of DTH businesses that
includes platforms as far apart as the UK and Italy in Europe, and Mexico and
Brazil in Latin America.
The Tata Group is one of India's largest and most respected business
conglomerates. It comprises 93 operating companies in seven business sectors:
information systems and communications, engineering, materials, services,
energy, consumer products and chemicals. The Tata Group has operations in more
than 40 countries across six continents and its companies export products and
services to 140 nations. The Group and its enterprises have been steadfast and
distinctive in their adherence to business ethics and their commitment to
corporate social responsibility. This is a legacy that has earned the Group the
trust of many millions of stakeholders in a measure few business houses
anywhere in the world can match.
Pressroom:
Tata
Sky launches Programming Guide in Hindi
Mumbai, 4 August 2008: Tata Sky Limited, the JV between the
TATA Group and STAR, today announced the launch of the Programming Guide in
Hindi. Tata Sky has been the first DTH Company across the globe to launch
interactive services such as matrimony based classifieds, education services,
cooking recipes on-demand and 24x7 darshan on TV. Now, with the launch of the
Programming Guide in Hindi, the company has achieved yet another global first.
With the new Programming Guide, Tata Sky subscribers can choose to view and
navigate the 4-day TV listings in English or Hindi, at the press of a button.
Since, Hindi is not only the national language, but also one of the most widely
read and understood languages in India, this new feature will make it easier
for millions of viewers across the country to plan and organise their TV
viewing more effectively.
Mr. Vikram Kaushik, Managing Director
& CEO, Tata Sky Limited, said, “We are the first company
across the globe to introduce advanced technology, to give subscribers the
flexibility to choose the language in which they want to view daily programme
listings on TV, at the press of a button. A large majority of the population in
India are proficient in Hindi and therefore, we are confident that the
Programming Guide in Hindi will make planning daily TV viewing even more easy
for many of our subscribers.”
The new Programming Guide has all the functionalities and navigation features
that were available on Tata Sky so far. The only difference is that the viewer
can choose the language of the Guide. If Hindi is selected as the language of
preference, the viewer can read programme names, navigation instructions and even
help on how to use Tata Sky services in Hindi.
Tata
Sky signs Aamir Khan as a Brand Ambassador
Mumbai, July 2008: Tata Sky Limited, the JV between the TATA Group and STAR, has signed Aamir Khan,
one of India’s highly acclaimed actors, as a brand ambassador.
Speaking about Aamir Khan as the brand ambassador for Tata Sky, Mr. Vikram Kaushik, CEO & Managing Director,
Tata Sky Limited said, “Aamir makes a perfect fit with the Tata
Sky brand values of trust, high-quality entertainment and innovation. As our
brand ambassador, he will be instrumental in communicating the benefits of Tata
Sky to consumers across the country. It is our privilege to be associated with
an actor of the highest caliber and excellent standing in the entertainment
industry.”
Aamir Khan will feature across all Tata Sky brand and product communication
including advertisements on TV, Print, Outdoor, Radio and other mediums.
Commenting on his association with Tata Sky, Aamir said,
“I am delighted to be associated with Tata Sky. Since its launch, Tata Sky has
redefined television viewing in India and I am proud to be associated with a
brand that epitomizes continued innovation and excellence in home
entertainment.”
Alluding to the popular Tata Sky tag line - Isko laga dala, toh life jingalala,
he added, “I’m excited to play my part in making life jingalala for the Indian
consumer”.
Tata Sky crossed the two million connections mark in a period of 20 months
only, thus retaining its position as the fastest growing direct-to-home service
provider across the globe.
Tata Sky has also been recognized as an innovator in the Indian pay television
industry. The company was also the first to offer interactive services for every
member of a family -- ranging from education, cooking, quizzing, and sports to
24x7 darshan of leading temples of the country. Further, to live up to its
promise of top-class customer service, Tata Sky has set-up three high-end 24x7
call centres in Hyderabad, Mohali and Pune supporting 11 languages and
introduced new means for payment of monthly subscription (credit card, auto
debit, recharge vouchers). In its constant endeavour to offer its subscribers
with maximum choice and value, Tata Sky offers multiple channel packages giving
subscribers the freedom of genuine choice at affordable prices. The
company will also be launching its high-end personal video recorder (PVR) later
this year.
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 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.46.88 |
|
UK Pound |
1 |
Rs.82.97 |
|
Euro |
1 |
Rs.64.99 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
- |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
- |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
- |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
|
35 |
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 |
|