MIRA
INFORM REPORT
|
Report Date : |
08.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
SMARTLINK NETWORK SYSTEMS LIMITED |
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Formerly Known
As : |
D- LINK ( |
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Registered Office
: |
L-5 and L-7, Verna Electronic City, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
31.03.1993 |
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Com. Reg. No.: |
24-1341 |
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CIN No.: [Company Identification
No.] |
L3007GA1993PLC001341 |
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Legal Form : |
Public Limited
Liability Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacture and Market networking and communication products |
RATING & COMMENTS
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MIRA’s Rating : |
A (58) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 6400000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
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 – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
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 |
INFORMATION DECLINED BY
|
Name : |
Mr. Manoj |
|
Designation : |
Account Department |
|
Date : |
06.01.2011 |
LOCATIONS
|
Registered Office : |
L-5 and L-7, Verna Electronic City, |
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Tel. No.: |
91-832-2885400 |
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Fax No.: |
91-832-2783395 |
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E-Mail : |
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Overseas Offices: |
Located At: ·
·
·
·
·
·
·
·
·
Bromma ·
·
·
·
·
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# 65, 35th Main, 100 ft. ring Road, 2nd Stage,
BTM Layout, Bangalore-560 076, |
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# 10-A, KIADB Industrial Area, Electronic City, Phase-22, Konappan,
Bangalore-560 100, |
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R and D Centre 2: |
65, 35th |
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Corporate Office: |
Located At: ·
Bandra ·
Santacruz |
DIRECTORS
As on 24.07.2010
|
Name : |
Mr. Kamalaksha Rama Naik |
|
Designation : |
Whole time Director |
|
Address : |
House No.A-1/A, Row House Lotus, Hermitage, Benaulin, South Goa-403
716, |
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Date of Birth/Age : |
19.11.1947 |
|
Date of Appointment : |
31.03.1993 |
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|
Name : |
Mr. Krishnanand Maruti Gaonkar |
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Designation : |
Director |
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Address : |
504, 505, |
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Date of Birth/Age : |
10.09.1952 |
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Date of Appointment : |
24.05.2000 |
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|
Name : |
Mr. Dattaraj V. Salgaocar |
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Designation : |
Director |
|
Address : |
Hira Vihar House No.278, Chicalim, Marmugao-403 711, |
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Date of Birth/Age : |
23.05.1957 |
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Date of Appointment : |
17.05.2001 |
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Name : |
Mr. Pankaj Madhav Baliga |
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Designation : |
Director |
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Address : |
91, |
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Date of Birth/Age : |
18.10.1946 |
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Date of Appointment : |
22.12.2005 |
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Name : |
Mr. Rishikesh T. Krishnan |
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Designation : |
Director |
|
Address : |
Faculty Quarters, 117, IIMB Campus, Bannergatta Road, Bangalore-560
076, |
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Date of Birth/Age : |
06.02.1964 |
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Date of Appointment : |
22.12.2005 |
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Name : |
Mr. Pradeep Anant Rane |
|
Designation : |
Director |
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Address : |
1502, Amberosia, Behind |
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Date of Birth/Age : |
07.01.1953 |
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Date of Appointment : |
26.12.2006 |
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Name : |
Mr. Jangoo Minoo Dalal |
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Designation : |
Director |
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Address : |
Flat No.8- IM 020 Lane, 113 Min Sen road, |
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Date of Birth/Age : |
02.11.1965 |
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Date of Appointment : |
02.07.2007 |
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Name : |
Mr. Tony An- Pang Tsao |
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Designation : |
Director |
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Address : |
Block No.8, |
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Date of Birth/Age : |
29.07.2009 |
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Date of Appointment : |
04.02.1999 |
KEY EXECUTIVES
|
Name : |
Mr. K. Guruprasad Prabhu |
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Designation : |
Company Secretary |
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Address : |
Ravalnath Kripa, 26A, Behind Durga Petrol Pump, Fatorda, Margao, South
Goa-403 602, |
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Date of Birth/Age : |
11.06.1971 |
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Date of Appointment : |
14.02.2001 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
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|
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|
20,202,020 |
67.33 |
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|
20,202,020 |
67.33 |
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Total shareholding of Promoter and Promoter Group (A) |
20,202,020 |
67.33 |
|
(B) Public Shareholding |
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|
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|
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|
2,030 |
0.01 |
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|
204,000 |
0.68 |
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|
206,030 |
0.69 |
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|
|
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|
1,877,021 |
6.26 |
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|
5,761,680 |
19.20 |
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|
1,034,111 |
3.45 |
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|
923,988 |
3.08 |
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|
128,349 |
0.43 |
|
|
417,375 |
1.39 |
|
|
378,264 |
1.26 |
|
|
9,596,800 |
31.98 |
|
Total Public shareholding (B) |
9,802,830 |
32.67 |
|
Total (A)+(B) |
30,004,850 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
Total (A)+(B)+(C) |
30,004,850 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionsAs on 24.07.2010
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Nationalized or
Other Banks |
|
0.01 |
|
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
|
2.14 |
|
Bodies
corporate |
|
6.12 |
|
Directors
or relatives of directors |
|
66.65 |
|
Other
top fifty shareholders |
|
13.56 |
|
Others
|
|
11.52 |
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Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture and Market networking and communication products |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
600 (Approximately) |
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Bankers : |
·
HDFC Bank Limited, HDFC Bank House Senapati Bapat
Marg, Lower Parel (West), Mumbai-400 013, ·
Times
Bank Limited, Rangavi, |
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Banking
Relations : |
- |
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Auditors : |
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|
Name : |
Deloitee Haskins and Sells Chartered Accountants |
|
Address : |
2, |
CAPITAL STRUCTURE
As on 24.07.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
35000000 |
Equity Shares |
Rs.2/- Each |
Rs.70.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30004850 |
Equity Shares |
Rs.2/- Each |
Rs.60.010
millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
60.010 |
60.010 |
60.010 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1528.346 |
1437.936 |
2050.646 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1588.356 |
1497.946 |
2110.656 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
2.618 |
|
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
2.618 |
|
|
DEFERRED TAX LIABILITIES |
19.391 |
42.112 |
50.366 |
|
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Employee Stock Option outstanding |
14.419 |
15.917 |
13.332 |
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|
|
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TOTAL |
1622.166 |
1555.975 |
2176.972 |
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APPLICATION OF FUNDS |
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|
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FIXED ASSETS [Net Block] |
419.231 |
512.172 |
600.674 |
|
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Capital work-in-progress |
13.849 |
7.170 |
8.033 |
|
|
|
|
|
|
|
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INVESTMENT |
926.471 |
653.107 |
1043.172 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
171.322
|
130.886 |
339.038 |
|
|
Sundry Debtors |
268.118
|
255.899 |
585.733 |
|
|
Cash & Bank Balances |
53.366
|
76.964 |
45.170 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
116.248
|
163.023 |
153.151 |
|
Total
Current Assets |
609.054
|
626.772 |
1123.092 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
189.631
|
138.404 |
433.236 |
|
|
Other Current Liabilities |
49.226
|
58.566 |
59.365 |
|
|
Provisions |
107.582
|
46.276 |
105.398 |
|
Total
Current Liabilities |
346.439
|
243.246 |
597.999 |
|
|
Net Current Assets |
262.615
|
383.526 |
525.093 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1622.166 |
1555.975 |
2176.972 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1493.168 |
1389.529 |
2828.678 |
|
|
|
|
168.521 |
174.899 |
84.322 |
|
|
|
Other Income |
104.130 |
108.752 |
147.037 |
|
|
|
TOTAL (A) |
1765.819 |
1673.180 |
3060.037 |
|
|
|
|
|
|
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|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing and Other expenses |
781.148 |
764.271 |
1053.088 |
|
|
|
Purchase of traded goods |
665.596 |
701.940 |
1557.754 |
|
|
|
Excise duty |
5.322 |
(2.755) |
(0.842) |
|
|
|
Increase/(Decrease) in stocks of finished goods and work-in-progress |
(47.949) |
41.916 |
(7.238) |
|
|
|
Exceptional Items |
|
|
(4.446) |
|
|
|
TOTAL (B) |
1404.117 |
1505.372 |
2598.316 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
361.702 |
167.808 |
461.721 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1.026 |
2.670 |
5.398 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
360.676 |
165.138 |
456.323 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
117.971 |
105.673 |
74.614 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
242.705 |
59.465 |
381.709 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
64.055 |
(9.861) |
96.369 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
178.650 |
69.326 |
285.340 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
959.945 |
1309.864 |
1123.732 |
|
|
|
|
|
|
|
|
|
Less |
Transferred pursuant to Scheme of Arrangement |
0.000 |
377.208 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed dividend |
75.012 |
30.005 |
60.010 |
|
|
|
Proposed dividend |
12.458 |
5.099 |
10.199 |
|
|
|
Transfer to General Reserve |
17.865 |
6.932 |
29.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1033.259 |
959.945 |
1309.864 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
5.95 |
2.31 |
9.51 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
|
Net Sales |
|
424.840 |
484.610 |
|
Total Expenditure |
|
363.740 |
425.430 |
|
PBIDT (Excl OI) |
|
61.100 |
59.180 |
|
Other Income |
|
10.750 |
11.660 |
|
Operating Profit |
|
71.850 |
70.840 |
|
Interest |
|
0.520 |
0.520 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
71.330 |
70.320 |
|
Depreciation |
|
17.930 |
19.260 |
|
Profit Before Tax |
|
53.400 |
51.060 |
|
Tax |
|
13.000 |
7.770 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
40.400 |
43.290 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
40.400 |
43.290 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
10.12
|
4.14 |
9.32 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
16.25
|
4.28 |
13.49 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.40
|
5.22 |
22.14 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.04 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.22
|
0.16 |
0.28 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.76
|
2.58 |
1.88 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
31.03.2008 (Rs. in millions) |
|
Sundry
creditors |
|
|
|
|
Total outstanding dues of micro
enterprises and small enterprises |
0.431 |
0.177 |
0.500 |
|
Total outstanding dues of creditors other
than micro enterprises and small enterprises |
189.200 |
138.227 |
432.736 |
Performance and
Significant Developments:
In the financial year
2009-10, the company achieved a turnover of Rs. 1556.32 million representing a
growth of 6.9% as compared to Rs. 1456.11 million in the previous year. The
sales from services were lower at Rs. 168.52 million for the year ended 31st
March, 2010 as compared to Rs. 174.90 million in the previous year.
Net Profit after
tax grew by 157.7% to Rs. 178.65 million for the year ending 31st March, 2010
as compared to Rs. 69.33 million in the previous year.
The Company has been
following the policy of providing for depreciation on Plant and machinery,
Electrical installations, Air conditioners, Computer software, Furniture
fittings and office equipment in accordance with Schedule XIV of the Companies
Act, 1956. During the year, the Company, in order to have more appropriate
presentation of the fixed assets and having regard to the extent of usage of
these assets and their estimated useful life, has changed this policy and now
follows the policy of depreciating these assets over their estimated useful
life. As a result of change in the method of providing for depreciation, the
charge for the year is higher by
Rs.66 million and
the profit for the year is lower by the like amount.
Management
Discussion and Analysis Report:
Awards and Recognition
The Company’s
efforts have been acknowledged through numerous awards and prestigious
accolades in 2009. During the year the company has received the following
awards and recognition:
a. PC Quest Users
Choice Awards 2009 ranked DIGILINK® as No. 1 in
b. In a channel
survey done by CRN, DIGILINK has been recognized as the ‘Channel Champion’ in
Network Cabling 2009, second year in the row.
c. DIGILINK® was
recognised as the ‘Best Structured Cabling Company and Fastest growing brand’ by VarIndia Star Nite Award
2009.
Bankers Charges
Report as per Registry
|
Name of the company |
D- LINK ( |
||||||||
|
Presented By |
Mr. Kamalaksha R.
Naik |
||||||||
|
1) Date and description of instrument creating the change |
Hypothecation
agreement for Movables, Book Debts and Movable Machinery dated 27.07.1999 |
||||||||
|
2) Amount secured by the charge/amount owing on the securities of charge |
|
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3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
1. Hypothecation
of Movable and Book debts 2. Hypothecation
of Movable Machinery and Other Assets both present and future belonging to
the borrowers being and lying in the borrowers’ premises or godown of or
rented by the borrowers or otherwise used in connection with the business of
borrowers. |
||||||||
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Cash Credit – Interest
-15.30% p. a. with quarterly rest Letter of credit Bank Guarantee –
2% p.a for performance Guarantee 2% Commission as per
banks tariff. |
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|
5) Name and Address and description of the person entitled to the charge. |
Times Bank
Limited, Rangavi, |
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|
6) Date and brief description of instrument modifying the charge |
Not Applicable |
||||||||
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
Not Applicable |
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified |
90065538 |
|
Corporate
identity number of the company |
L30007GA1993PLC001341 |
|
Name of the
company |
D-LINK ( |
|
Address of the
registered office or of the principal place of business in |
L-5 and L-7, Verna Electronic City, |
|
Type of charge |
Book Debts Floating Charge Others Current Assets of
the Company Stocks and Bookdebts |
|
Particular of
charge holder |
HDFC Bank Limited, HDFC Bank House Senapati Bapat Marg, Lower Parel
(West), Mumbai-400 013, |
|
Nature of
description of the instrument creating or modifying the charge |
Letter of
Hypothecation of Stocks and Book Debts |
|
Date of
instrument Creating the charge |
06.08.2008 |
|
Amount secured by
the charge |
Rs.300.000
millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest The rate of
interest will be mutually agreed from time to time. Terms of
Repayment The principal amount
of loan shall be repaid on demand by the borrower or on due date, if not
demanded earlier. Margin Margin as may be
stipulated by the Bank form time to time. Extent and
Operation of the charge Exclusive charge
on all stocks and book debts of the company, both present and future. |
|
Short particulars
of the property charged |
Exclusive charge
on all stocks and book debts of the company, both present and future. |
|
Date of latest
modification prior to the present modification |
27.09.1999 |
|
Particulars of
the present modification |
At the request of
the borrower, the Bank has agreed to grant enhanced credit facilities from
Rs.60.000 millions to Rs.300.000 millions comprising of (1) Cash Credit / Working Capital Loan (Fund Based) of Rs. 100.000 millions (2) Letter of
Credit/ Bank Guarantee/ Buyers Credit (Non Fund Based) of Rs. 200.000
millions Existing security will cover additional facilities also |
Fixed Assets:
·
Leasehold land/ premises
·
Buildings
·
Plant and machinery
·
Electrical installations
·
Furniture, fittings and office equipment
·
Air conditioners
·
Motor vehicles
·
Computers
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.45.37 |
|
|
1 |
Rs.70.04 |
|
Euro |
1 |
Rs.58.93 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
58 |
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.