MIRA
INFORM REPORT
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Report Date : |
08.12.2011 |
IDENTIFICATION DETAILS
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Name : |
SIFY TECHNOLOGIES LIMITED |
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Registered
Office : |
TIDEL Park, 2nd Floor, No. 4, Canal Bank Road, Taramani,
Chennai-600113, Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
12.12.1995 |
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Com. Reg. No.: |
18-050809 |
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Capital Investment
/ Paid-up Capital : |
Rs. 858.831 Millions |
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CIN No.: [Company Identification
No.] |
U72200TN1995PLC050809 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CHES04930C |
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PAN No.: [Permanent Account No.] |
AAACS9032R |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business
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Provides internet access and internet services to consumers and
businesses |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
B (28) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 18000000 |
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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 company having moderate track. There appears
huge accumulated losses recorded by the company. However, trade relations are
reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some
cautions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
TIDEL Park, 2nd Floor, No. 4, Canal Bank Road, Taramani,
Chennai-600113, Tamilnadu, India |
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Tel. No.: |
91-44-22540770/ 77 |
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Fax No.: |
91-44-22540771 |
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E-Mail : |
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Website : |
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Overseas offices : |
Located at: ·
US ·
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DIRECTORS
AS ON 31.03.2011
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Name : |
Mr. Raju Vegesna |
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Designation : |
Chairman, Managing Director and Chief Operating Officer |
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Name : |
Mr. Ananda Raju Vegesna |
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Designation : |
Executive Director |
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Name : |
Mr. T H Chowdary |
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Designation : |
Director |
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Name : |
Mr. C B Mouli |
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Designation : |
Director |
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Name : |
Mr. P S Raju |
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Designation : |
Director |
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Name : |
Mr. S K Rao |
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Designation : |
Director |
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Name : |
Mr. S R Sukumara |
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Designation : |
Director |
KEY EXECUTIVES
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Compensation Committee : |
Mr. T H Chowdary, Chairman Mr. P S Raju Mr. S K Rao Mr. S R Sukumara |
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Name : |
Mr. V Ramasubramanian |
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Designation : |
Company Secretary |
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Name : |
Mr. M P Vijay Kumar |
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Designation : |
Chief Financial Officer |
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Audit Committee : |
Mr. C B Mouli, Chairman and Financial Expert Mr. S K Rao Mr. S R Sukumara |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
Not Available
BUSINESS DETAILS
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Line of Business : |
Provides internet access and internet services to consumers and
businesses |
GENERAL INFORMATION
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No. of Employees : |
Not Available |
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Bankers : |
·
State Bank of India ·
AXIS Bank Limited ·
Oriental Bank of Commerce ·
IDBI Bank Limited ·
Citibank N.A. ·
ICICI Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
CKS Associates Chartered Accountants |
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Address : |
Hyderabad, India |
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Holding Company : |
·
Raju Vegesna Infotech & Industries Private
Limited |
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Subsidiaries : |
·
Sify International Inc. ; ·
Sify Software Limited (formerly Sify Networks
Private Limited) ·
Sify Technologies (Singapore) Pte. Limited |
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Associates : |
·
MF Global-Sify Securities India Private Limited |
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Enterprises over
which KMP have significant influence : |
·
VALS Developers Private Limited ·
Infinity Satcom Universal Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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180000000 |
Equity Shares |
Rs.10/- each |
Rs. 1800.000 Millions |
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Issued, Subscribed Capital :
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No. of Shares |
Type |
Value |
Amount |
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178351498 |
Equity Shares |
Rs.10/- each |
Rs. 1783.515
Millions |
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Note:
[Net of forfeited
shares of 12,823,202 (March 31, 2010: 12,823,202) equity shares of Rs 10 each]
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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53351498 |
Equity Shares |
Rs.10/- each |
Rs. 533.514
Millions |
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125000000 |
Equity Shares |
Rs.2.50/-
each |
Rs. 312.500
Millions |
|
12823202 |
Add -Forfeited Shares |
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Rs. 12.817
Millions |
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Total |
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Rs. 858.831 Millions |
Notes:
1) Of the above,
the Company has issued 11,482,551 (March 31, 2010: 11,482,551) equity shares of
Rs 10 each
for consideration
other than cash.
2) Of the above,
125,000,000 (March 31, 2010: Nil) equity shares of Rs 10 each are held by Raju
Vegesna Infotech and Industries Private Limited, the holding company.
3) During the year
ended March 31, 2011, the company has issued 125,000,000 equity shares of Rs 10
each to its promoter group on a private placement basis of which an amount of
Rs.2.50 per share is paid up.
AS ON 28.09.2011
Authorised Capital : Rs. 1800.000
Millions
Issued, Subscribed & Paid-up Capital : Rs. 1784.576 Millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.3.2011 |
31.03.2010 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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858.831 |
546.331 |
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2] Stock Options Outstanding Account |
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15.585 |
22.694 |
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3] Reserves & Surplus |
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5850.155 |
5162.655 |
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4] (Accumulated Losses) |
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(2123.599) |
(1590.484) |
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NETWORTH |
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4600.972 |
4141.196 |
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LOAN FUNDS |
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1] Secured Loans |
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1916.032 |
2618.599 |
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2] Unsecured Loans |
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171.336 |
55.608 |
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TOTAL BORROWING |
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2087.368 |
2674.207 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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6688.340 |
6815.403 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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3157.788 |
3556.875 |
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Capital work-in-progress |
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466.354 |
313.255 |
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INVESTMENT |
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637.823 |
637.663 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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15.637 |
21.488 |
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Sundry Debtors |
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1755.505 |
1818.167 |
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Cash & Bank Balances |
|
505.075 |
858.345 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
|
2585.485 |
2036.218 |
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Total
Current Assets |
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4861.702 |
4734.218 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
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1780.258 |
1791.286 |
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Other Current Liabilities |
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620.727 |
5 |
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Provisions |
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34.342 |
38.895 |
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Total
Current Liabilities |
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2435.327 |
2426.608 |
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Net Current Assets |
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2426.375 |
2307.610 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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6688.340 |
6815.403 |
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PROFIT & LOSS ACCOUNT
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PARTICULARS |
|
31.03.2011 |
31.03.2010 |
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SALES |
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Sales and Services |
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6565.932 |
6543.139 |
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Other Income |
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155.389 |
217.000 |
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TOTAL |
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6721.321 |
6760.139 |
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Less |
EXPENSES |
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Cost of hardware and software sold |
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531.175 |
933.433 |
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Personnel Expenses |
|
1006.886 |
1234.547 |
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Other Expenses |
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4803.691 |
4194.860 |
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Exceptional Items |
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0.000 |
(945.544) |
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TOTAL |
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6341.752 |
5417.296 |
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Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
|
379.569 |
1342.843 |
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Less |
FINANCIAL
EXPENSES |
|
239.501 |
288.272 |
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PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
|
140.068 |
1054.571 |
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Less/ Add |
DEPRECIATION/
AMORTISATION |
|
682.371 |
697.772 |
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PROFIT / (LOSS)
BEFORE TAX |
|
(542.303) |
356.799 |
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Less |
TAX |
|
0.000 |
(3.501) |
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PROFIT / (LOSS)
AFTER TAX |
|
(542.303) |
360.300 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
(1621.761) |
(1982.061) |
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BALANCE CARRIED
TO THE B/S |
|
(2164.064) |
(1621.761) |
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EARNINGS IN
FOREIGN CURRENCY |
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Service Earnings |
|
1888.311 |
1784.293 |
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TOTAL EARNINGS |
|
1888.311 |
1784.293 |
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IMPORTS |
|
|
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|
Software / Hardware Imported |
|
78.655 |
160.927 |
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|
|
Fixed Assets |
|
129.681 |
154.417 |
|
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TOTAL IMPORTS |
|
208.336 |
315.344 |
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Earnings /
(Loss) Per Share (Rs.) |
|
(8.32) |
6.75 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
|
(8.07) |
5.33 |
|
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Net Profit Margin (PBT/Sales) |
(%) |
|
(8.26) |
5.45 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
|
(6.76) |
4.30 |
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Return on Investment (ROI) (PBT/Networth) |
|
|
(0.12) |
0.09 |
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Debt Equity Ratio (Total Liability/Networth) |
|
|
0.98 |
1.23 |
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|
Current Ratio (Current Asset/Current Liability) |
|
|
2.00 |
1.95 |
LOCAL AGENCY FURTHER INFORMATION
BACKGROUND
Subject is a Company
domiciled in India. The address of the Company’s registered office is 2nd
Floor, Tidel Park, 4, Rajiv Gandhi Salai, Taramani, Chennai – 600113, India.
The Company is primarily involved in providing services such as Corporate
Network and Data Services including data centre services, Internet Access
Services, Online Portal and Content offerings and selling hardware and software
related to such services. Subject was incorporated on December 12, 1995 and is
listed on the NASDAQ.
FINANCIAL REVIEW
During the year,
the Company registered a revenue of Rs.6,566 millions against Rs.6,543 millions
in the previous year. The loss before exceptional items for the year was Rs.542
millions, lower by Rs.47 millions compared to previous year reflecting
improvement in performance.
MAJOR CORPORATE DEVELOPMENTS
ISSUE OF FRESH CAPITAL
In terms of the
approval of the shareholders at the Fourteenth Annual General Meeting, M/s Raju
Vegesna Infotech and Industries Private Limited, a promoter Group Company,
subscribed for 125,000,000 Equity Shares of Rs.10/- each at a premium of
Rs.22/- per share for cash in the Company for funding the capital expenditure
requirements of the Company.
The Company has so
far received a sum of Rs.1000 millions towards application and allotment money.
The Board of Directors has called for the First Call money of Rs.1000 million
on the partly paid up shares, which is expected
to be received by
end August 2011. The remaining Rs.2000 million will be called upon by the Board
based on fund requirements of the Company for various ongoing projects. The
funds raised through the fresh infusion would be used only for the capital
expenditure for the projects and not for the working capital requirements of
the
Company.
The Directors take
this opportunity to acknowledge and place on record their appreciation for the
co-operation and consistent support received from the promoters in infusing
funds into the Company for its expansion programmes, which clearly demonstrates
their faith and commitment to the growth of the Company.
BUSINESS REVIEW
ENTERPRISE SERVICES
The Enterprise
Services accounted for Rs. 5600 million; about 85% of the total revenues of the
company. On a year on year basis, the Enterprise business has grown by around
6% in terms of revenue.
This Strategic
Business Unit (SBU) consists of Data services, Hosting, Managed voice services,
Application services and Systems Integration.
In Data services,
the Company increased the total managed bandwidth services contracted to
customers. It continued to expand the reach of its network and today reaches
667 towns and cities across the country. Large Telecom operators who wish to
increase footprint to remote parts of the country are now engaging the company
to utilize this spread.
The Company’s
established success in the connectivity business has a happy fall out; their
propositions are being
weighed more
seriously by the Government for their needs. The company sees demand for its
services growing with the government’s concentrated push for IT services.
The Company’s
investment in the submarine cable business has reached an advanced stage of
commissioning. The Mumbai cable landing station is expected to go live later
this year.
Hosting services
has seen a sustained growth during the year to record 20% growth in revenues
over the previous year. Projects delivered to clients for their On Demand
Storage services have helped in that clients are now referring recurrent
business second year in a row.
The Company’s
evangelizing of the Cloud Computing Services has turned it into the go-to
company for on-demand storage requirements. In the coming years, they see more
clients coming on board for their applications services. The Company has won
the “Best Product implementation” award for 2011 for Cloud Security product
implementation.
During the year,
the Company strengthened its position in the competitive Managed Voice Services
market. Revenues have grown by more than 43% over the previous year and volume
of traffic by 80%. The acceptance of the Company by Telecom operators as a
credible interconnect partner for both international and domestic termination
of voice traffic has helped cement its position in the industry.
In Systems
Integration, the Company focused on establishing itself as a leader in the Data
Centre Build Practice. They are happy to report that this has been achieved by
the Company against stiff competition and by establishing itself as a leader in
State Data Centre build and operate contracts. Their Data Centre business, both
for the State and private players, generated around Rs.275 millions revenue
during the year. The Company will continue to focus on Data Center build
services, while lowering focus on hardware sizing.
The Company
identified and entered the Government sector last year with increasing success.
The Company has so far won five State Data Centres (SDC), the maximum number of
contracts for building and operating SDCs. The first of these have been
commissioned. The Company’s adherence to stipulated timelines is helping it
emerge as a leader in this space.
The Government of
India’s move to classify the proposed fiber-optic network as a national
resource and make it available on equal terms to all operators, wishing to
provide broadband services will lead to a more level playing field for the
Company. It will also allow the Company to further leverage their investments
to deliver value added services to customers across India.
CONSUMER SERVICES
The business
accounted for Rs 526 million, about 8% of the total revenues of the Company during
the year.
Consumer Services
Division went through complete reengineering during the last year. Strategic
efforts were made to further consolidate various divisions within Access media
and Portals to bring in more consumer centricity. The division also launched of
Sify Mylife - a consumer cloud platform and new broadband products for SOHO,
SMB and home segments. The consumer services division also brought in changes
in the e-port business model.
SIFY MYLIFE
The Company
launched India’s first consumer cloud services, branded as Sify mylife. Sify
mylife is a rich ecosystem which enables consumers to access a whole new world
of services, allowing application developers to
build and host
solutions on Sify mylife and advertisers to talk to people who access the net,
either at cafes, home
or on mobile
internet devices like smart phones.
SIFY E-PORT AND
CONNECTIVITY
During the year,
the Company launched a different model for connectivity to sign-on non e-port
cybercafés in India. The Company now has over 1860 cafés connected, including
377 operational e-Ports.
The Company
entered into agreements with selected colleges and training institutes to
conduct online examinations at these cafes. The Company continues to provide
value added services in the areas of Travel, Utility and Financial services
which represent new sources of revenue that have the potential to grow in the
years to come.
SIFY BROADBAND
The Company’s
broadband service is available in over 200 cities and towns in India, with a
base of around 80,000 subscribers through a network of about 1400 franchisees.
A new range of
products was launched for the SMB segment, bundled with a range of value added
services. A special team is focusing on this target segment and the Company has
already signed over 525 SMB customers across the country.
INTERACTIVE
SERVICES (PORTALS)
As one of India’s
popular consumer portals from the company, Sify.com continued to focus on
consumer behavior and user trends to revamp its content offerings to attract
visitors and sustain interest. Sify.com was ranked among
the top three
leading publishers for online display advertising in India.
Comscore acclaimed
Sify Sports as the fastest growing sports site with a growth of 379%. New
initiatives to offer
the best of sporting
content (primarily Cricket) to visitors on Sify Sports including cricket
scorecard on the Microsoft Silverlight platform, a move that has built
stickiness among the visitors and the trade. The Cricket World cup coverage on
Sify Sports achieved the highest ever page views during the season. These
sections saw a combination of event coverage and interesting new features
including user interactive sections like Fun Zone.
Following the
latest user trends, the company launched an interactive Stockometer section on
Microsoft’s Silverlight platform, which enables users of Sify finance to follow
the latest stock prices, stock portfolio and watch list. This also enables a
user to customize the tool to suite his preferences.
Sify Movies
launched an internet radio channel-Sify Radio as a new property in alliance
with Radio City. Sify Radio offers music from multiple genres in Hindi and
English languages.
Samachar.com, the
preferred online news destination for non-resident Indians is now available on
mobile. Users can now access India specific news from leading newspapers,
magazines and websites from Samachar.com on their mobile devices. The Company
introduced a recommendation engine for Samachar.com users which understands the
user’s news review pattern and recommends similar news articles; this has
improved the content consumption by individual visitor on Samachar.com.
INTERNATIONAL
SERVICES
The business
accounted for Rs 440 million, about 7% of the total revenues of the Company
during the year.
The Division
continues to strive to improve profitability across both the lines of Business.
INFRASTRUCTURE
MANAGEMENT SERVICES
Revenue has grown
more than 40% during the year with increased engagement with a few key
customers. As the outlook for Infrastructure Management Services remains
strong, the Company will continue to invest in sales, marketing and product
engineering functions to grow the business further.
TECHNOLOGY INITIATIVES
• Subject network reach has expanded to 667 cities with 1160 nodes
across the country.
• Subject Enterprise Managed Service portfolio was extended and white
labeled as a managed services offering for other major Telco’s.
• Project work for Subject GBI submarine cable landing station is under
progress and the submarine cable has reached the shores.
• The network infrastructure has been enhanced to support multi services
like Private Leased circuits for Domestic and International and Ethernet based
services for domestic and International markets.
• Subject Fiber Local access network plan gained momentum with the
addition of Fiber Nodes in the six major cities to provide Fiber to the
Buildings.
AWARDS
• Best Telecom
Data Centre Award from INFOCOM, CMAI.
• Best product
implementation Award from Fortinet for cloud services.
• IPV6 certified
ISP and ISP portal from IPV6 forum
SUBSIDIARY
COMPANIES AND ASSOCIATE COMPANY
SIFY SOFTWARE
LIMITED
During the year,
the Company reported revenue of Rs. 494.80 million against Rs. 224.95 million
in the previous six months period ended March 31, 2010. The loss incurred was
Rs.120.62 million as against loss of Rs.51.41 million in the previous year.
SIFY TECHNOLOGIES
(SINGAPORE) PTE. LIMITED
During the year,
the Company reported revenue of Rs. 5.64 million against Rs. 6.75 million in
the previous year. The loss incurred was Rs. 1.06 million as against profit of
Rs. 0.71 million in the previous year.
SIFY INTERNATIONAL
INC.
During the year,
the Company reported revenue of Rs.16.56 million against Rs. Nil in the previous
year. The profit was Rs.1.36 million as against Loss of Rs.0.95 million in the
previous year.
MF GLOBAL SIFY
SECURITIES INDIA PRIVATE LIMITED
During the year,
the Associate Company registered revenue of Rs.1604.41 million against
Rs.1480.71 millions in the previous year. The Net Profit for the year was
Rs.258.69 millions as compared to Rs.283.49 millions in the previous year.
FIXED ASSETS
·
Leasehold Land
·
Building
·
Plant and Machinery
·
Furniture and Fixtures
·
Office Equipments
·
Systems Software
·
Goodwill
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. 51.44 |
|
|
1 |
Rs. 80.37 |
|
Euro |
1 |
Rs. 69.12 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
|
28 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.