MIRA
INFORM REPORT
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Report Date : |
03.06.2011 |
IDENTIFICATION DETAILS
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Name : |
VODAFONE ESSAR CELLULAR LIMITED (w.e.f. 10.07.2007) |
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Formerly Known As : |
BPL MOBILE CELLULAR LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
30.03.1995 |
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Com. Reg. No.: |
18-007674 |
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Capital Investment
/ Paid-up Capital : |
Rs. 10726.800 Millions |
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CIN No.: [Company
Identification No.] |
U64202TZ1995PLC007674 |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Providing |
RATING & COMMENTS
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MIRA’s Rating : |
B (30) |
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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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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is one of the leading mobile services provides in the country.
There being many palyers in the market, there appears to be fierce competition
in this particular sector. Profitability of the company is under pressure.
There appears to be some accumulated losses recorded by the company. However
trade relations are reported as fair. Business is active. Payments are
reported to be slow. However in view of strong promoters 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
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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 |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-422-2213005 |
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Fax No.: |
91-422-2201388 |
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E-Mail : |
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Corporate Office : |
FP No. 27, Survey No. 21, Old Pune – |
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Tel. No.: |
91-20-30116000 / 01 |
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Branches : |
Located at :
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DIRECTORS
As on : 27.09.2010
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Name : |
Mr. Vikas Saraf |
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Designation : |
Director |
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Address : |
2B, Saker Apartments, 71, |
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Date of Birth/Age : |
18.12.1968 |
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Date of Appointment : |
21.07.2005 |
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Din No.: |
00055579 |
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Name : |
Mr. Govin John Darby |
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Designation : |
Director |
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Address : |
Rodona House, Rodona, Weybridge, |
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Date of Birth/Age : |
15.02.1956 |
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Date of Appointment : |
08.05.2007 |
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Date of Ceasing : |
10.02.2010 |
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Din No.: |
02432741 |
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Name : |
Mr. Ian Locke |
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Designation : |
Alternate Director |
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Address : |
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Date of Birth/Age : |
18.02.1970 |
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Date of Appointment : |
07.07.2009 |
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Date of Ceasing : |
30.09.2009 |
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Name : |
Mr. Iyer Seshan Krishnan |
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Designation : |
Director |
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Address : |
79, Tejal, Road No. 2, Hindu Colony, Dadar, Mumbai-400014, |
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Date of Birth/Age : |
09.08.1968 |
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Date of Appointment : |
01.04.2009 |
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Din No.: |
01724793 |
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Name : |
Mr. Prem Kalra |
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Designation : |
Director |
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Address : |
B/506, |
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Date of Birth/Age : |
03.10.1947 |
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Date of Appointment : |
11.06.2009 |
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Name : |
Mr. John William Lorimer Otty |
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Designation : |
Director |
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Address : |
1, |
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Date of Birth/Age : |
13.01.1964 |
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Date of Appointment : |
09.07.2009 |
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Name : |
Mr. Ravinder Takkar |
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Designation : |
Director |
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Address : |
Villa No.111, Laburnum Condominium Complex, Sushant Lok, Gurgaon –
122001, Haryana, India |
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Date of Birth/Age : |
05.07.1968 |
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Date of Appointment : |
10.02.2010 |
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Din No.: |
01719511 |
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Name : |
Mr. Rijk Jacobus Antonius Erik De |
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Designation : |
Director |
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Address : |
Eisenhowerlaan 47, ‘S, Gravenhuge, Netherlands, India |
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Date of Birth/Age : |
05.03.1960 |
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Date of Appointment : |
08.12.2009 |
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Date of Ceasing : |
24.12.2009 |
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Name : |
Mr. Sood Sunil |
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Designation : |
Managing Director |
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Address : |
4 C, IL Palazzo, little Gibbs Roiad, Malabar hill, Mumbai – 400006,
Maharashtra, India |
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Date of Birth/Age : |
09.02.1961 |
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Date of Appointment : |
09.07.2010 |
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Din No.: |
03132202 |
KEY EXECUTIVES
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Name : |
Mr. Ganesan Sambasivan |
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Designation : |
Secretary |
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Address : |
Subhadra, No. 11, 6th Flor, |
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Date of Birth/Age : |
28.04.1967 |
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Date of Appointment: |
27.03.2007 |
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Date of Ceasing : |
15.09.2010 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on : 27.09.2010
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Names of Shareholders |
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No. of Shares |
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NSDL Beneficiary – Vodafone Essar Limited, India |
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126197857 |
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Vodafone Essar Limited, India |
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35 |
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Vodafone Essar Mobile Services Limited Jointly With Vodafone Essar
Limited, New Delhi |
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6 |
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Vodafone Essar South Limited Jointly with Voadafone Essar Limited, New
Delhi |
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1 |
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Vodafone Essar Gujarat Limited Jointly with Vodafone Essar Limited,
Gujarat |
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1 |
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Vodafone Essar Digilink Limited Jointly with Vodafone Essar Limited,
New Delhi |
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1 |
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Vodafone Essar East Limited Jointly with Vodafone Essar Limited,
Kolkata |
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5 |
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Vodafone Essar Specetel Limited, Jointly with Vodafone Essar Limited,
New Delhi |
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50 |
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Total |
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126197956 |
Equity Share Breakup (Percentage of Total Equity)
As on : 27.09.2010
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Category |
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Percentage of Holding |
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Bodies Corporate (not mentioned above) |
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100.00 |
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BUSINESS DETAILS
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Line of Business : |
Providing |
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Services : |
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GENERAL INFORMATION
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Financial Institute: |
IL and FS Trust Company Limited, IL and FS Financial Centre, Plot No. C22,
G Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051, |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountant |
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Address : |
12, |
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Tel No.: |
91-22-66679000 |
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Fax No.: |
91-22-66679100 |
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Holding Company : |
Vodafone Essar Limited U32200MH1992PLC119108 |
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Ultimate Holding
Company: |
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Intermediate
Holding Company: |
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Subsidiaries : |
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Joint Ventures of Vodafone Plc : |
·
Vodafone Omnitel N.V. |
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Associates of Vodafone Plc : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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237700000 |
Equity Shares |
Rs. 85 /- each |
Rs. 20204.500 Millions |
|
48000000 |
Preference Shares |
Rs. 100/- each |
Rs. 4800.000 Millions |
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Total |
|
Rs. 25004.500
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
|
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|
126197956 |
Equity Shares |
Rs. 85/-
each |
Rs.
10726.800 Millions |
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Note:
All the above equity shares are held by
Vodafone Essar Limited (VEL) and its nominees jointly with VEL Pursuant to Sub –
Section (6) of Section 4 of the companies Act, 1956, VEL is a subsidiary of
Vodafone Group Plc, United Kingdom, Accordingly it is the ultimate holding
Company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 12 Months |
31.03.2009 12 Months |
31.03.2008 15 Months |
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|
SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
10726.826 |
10726.800 |
10726.800 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
22.927 |
8.300 |
0.000 |
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4] (Accumulated Losses) |
[34260.737] |
[31785.400] |
[28748.700] |
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NETWORTH |
[23510.984] |
[21050.300] |
[18021.900] |
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LOAN FUNDS |
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1] Secured Loans |
29614.965 |
29286.000 |
23000.000 |
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2] Unsecured Loans |
22507.091 |
21284.900 |
15226.300 |
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TOTAL BORROWING |
52122.056 |
50570.900 |
38226.300 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
28611.072 |
29520.600 |
20204.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
32458.336 |
30858.200 |
23216.500 |
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Capital work-in-progress |
2169.771 |
2410.400 |
3772.400 |
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INVESTMENT |
0.000 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
0.000
|
0.000
|
19.000 |
|
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Sundry Debtors |
2962.501
|
2190.400
|
1717.200 |
|
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Cash & Bank Balances |
1233.424
|
2392.500
|
1040.300 |
|
|
Other Current Assets |
0.000
|
0.000
|
1.000 |
|
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Loans & Advances |
5871.152
|
6167.700
|
2881.000 |
|
Total
Current Assets |
10067.077
|
10750.600
|
5658.500 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
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Current Liabilities |
15855.303
|
14295.900
|
12338.500 |
|
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Provisions |
228.809
|
202.700
|
104.500 |
|
Total
Current Liabilities |
16084.112
|
14498.600
|
12443.000 |
|
|
Net Current Assets |
[6017.035]
|
[3748.000]
|
[6784.500] |
|
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|
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|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
28611.072 |
29520.600 |
20204.400 |
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PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
39768.800 |
33937.700 |
23297.600 |
|
|
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Other Income |
1145.500 |
618.600 |
477.500 |
|
|
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TOTAL (A) |
40914.300 |
34556.300 |
23775.100 |
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Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of SIM Cards consumed |
214.600 |
209.400 |
216.500 |
|
|
|
Access and regulatory charges |
13371.800 |
11400.900 |
6900.000 |
|
|
|
Network operating expenditure |
9929.100 |
6860.900 |
4273.300 |
|
|
|
Personnel expenses |
1052.600 |
914.300 |
986.600 |
|
|
|
Advertisement, marketing, sales and distribution expenses |
2602.700 |
2776.300 |
2868.900 |
|
|
|
Administrative, general and other expenses |
4408.500 |
5143.700 |
4153.000 |
|
|
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TOTAL (B) |
31579.300 |
27305.500 |
19398.300 |
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|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
9335.100 |
7250.800 |
4376.800 |
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|
|
|
|
|
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|
|
Less |
FINANCIAL
EXPENSES (D) |
5984.100 |
5166.600 |
4459.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3351.000 |
2084.200 |
(82.300) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
5826.300 |
5107.900 |
4469.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(2475.400) |
(3023.700) |
(4551.400) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
0.000 |
13.000 |
15.000 |
|
|
|
|
|
|
|
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|
|
PROFIT AFTER TAX
(G-I) (J) |
(2475.400) |
(3036.700) |
(4566.400) |
|
|
|
|
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|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(31785.400) |
(28748.700) |
(24182.300) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(34260.800) |
(31785.400) |
(28748.700) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
839.000 |
1253.660 |
1127.700 |
|
|
TOTAL EARNINGS |
839.000 |
1253.660 |
1127.700 |
|
|
|
|
|
|
|
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|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
4801.900 |
7802.400 |
6141.600 |
|
|
TOTAL IMPORTS |
4801.900 |
7802.400 |
6141.600 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(19.62) |
(24.06) |
(36.18) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 12 Months |
31.03.2009 12 Months |
31.03.2008 15 Months |
|
|
|
|
|
|
|
PAT / Total Income |
(%) |
[6.05] |
[8.79]
|
[19.21] |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
[6.22] |
[8.91]
|
[19.54] |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
[5.82] |
[7.27]
|
[15.76] |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
[0.10] |
[0.09]
|
[0.25] |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
[2.90] |
[3.09]
|
[2.81] |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.62 |
0.74
|
0.45 |
LOCAL AGENCY FURTHER INFORMATION
Note:
The Registered office of the company has been shifted from BPL Centre,
1045 and 1046,
OPERATIONS
The year ended March
2010 finally saw the impact of lower tariffs and increased competition visibly
in statistical terms. Whilst the year has been challenging, the company’s
customer base grew to 18.587 million subscribers with a growth rate of 43% on a
year on year basis. The Company continues to be the market leader, having a
market share of 16% as at 31 March 2010 in a very competitive 11 players
market. During the year 2009-10, the Company has further expanded its network
to increase its coverage and networks continue to perform better against
acceptable thresholds for the major performance parameters. The Company added
2,273 cell sites to enhance its network coverage, closing with 16,276 cell
sites as at 31 March 2010.
OUTLOOK FOR 2010-11
Intense
competition is expected to continue in FY-2010-11. Pricing action that was
undertaken by new operators in FY 2009-10 to penetrate the market will continue
to impact revenues. However, it is expected that subscribers will bond with the
Company in view of the benefits of customer service, relevant pre-positions and
a reliable network as is understood by them. With the company along with its
group companies being successful in the recently concluded bids for 3G
spectrum, relevant value added services will be launched to enhance income from
data and other 3G enabled services. The Company is ready for Mobile Number
Portability as and when it would be introduced by the Government. Plans to
attract new high value customers and retain existing customers are in place.
The focus on cost reduction and working capital improvement will continue. The
regulatory environment is expected to continue to be challenging in the coming
year. Given the strong presence in the circles in which the Company operates
coupled with the brand strength of the Group, you company is confident of
addressing these
challenges.
EVENTS SUBSEQUENT TO BALANCE SHEET DATE
The Company has
been successful in the recently concluded auctions conducted by the Department
of Telecommunications for 3G spectrum in two service areas viz – Tamil Nadu and
Maharashtra in which it operates at a price of Rs. 14649.400 millions and
12578.200 millions respectively.
Form : 8
Bankers Charges
Report as per Registry
|
Name of the company |
BPL MOBILE CELLULAR
LIMITED |
|
Presented By |
G. Sambasivan Company
Secretary |
|
1) Date and description of instrument creating the change |
22.03.2002 Deed
of hypothecation executed by the company in favour of infrastructure
development finance company limited. A certified copy of the said deed of hypothecation
is enclosed. |
|
2) Amount secured by the charge/amount owing on the securities of charge |
The Bridge Loan
of Rs. 200.000 Millions agreed to be lent and advanced by IDFC to the company
together with interest, additional interest, liquidated damages, cost,
charges, expenses, and other monies payable by the company to IDFC in terms
of the Bridge Loan agreement dated the 22.03.2002 between the company of the
one part and IDFC of the other part. |
|
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 |
The whole of the
moveable properties of the company including its movable plant and machinery,
machinery spares, tools and accessories and other movables, both present and
future whether installed or not and whether now lying loose or in cases or
which are now lying or stored in or about or shall hereafter from time to
time during the continuance of the security of these presents be brought into
or upon or be stored or be in or about all the Company’s factories, premises
and Godowns main switching centres, cellsites and godowns situate in the
State of Tamilnadu, Maharashtra, Kerala, Goa and Karnataka and Union Territory
of Pondicherry or wherever else and same may be or be held by any party to
the order or disposition of the Company or in the course of transit
disposition of the company or in the course of transit or on high seas or on
order, or delivery, however and wheresoever in the possession of the company
and either by way of substitution or addition. |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
The charge operates
as security, interalia, for the due repayment by the Company to IDFC of its
Bridge Loan Rs. 200.000 Millions, together with all interest, additional
interest, liquidated damages, commitments charges, premia on prepayment
costs, charges, expenses and all moneys in terms of the said Agreement. The charge in
favour of IDFC under the said deed of hypothecations subject to the charges
created by the company in favour of its bankers on the company’s stock of raw
materials, semi finished and finished goods and consumables stores and book
debts an such other movables as may be specifically permitted to secure its
working capital requirements in the ordinary course of business. The company has
undertaken to keep the goods hypothecated in marketable and good condition at
its own costs and to insure the same in the joint names of the Company and
IDFC. All the goods
hypothecated and all realizations and insurance proceeds thereof and all
documents in respect of the said security are to be kept distinguishable and
held as the exclusive property of IDFC. The security
created under the said Deed of Hypothecation is to be a continuing
security. |
|
5) Name and Address and description of the person entitled to the charge. |
Infrastructure
Development Finance Company Limited, ITC centre, 3rd Floor, 760
Anna Salai, Chennai – 600002 |
|
6) Date and brief description of instrument modifying the charge |
-- |
|
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. |
-- |
|
Corporate
identity number of the company |
U64202TZ1995PLC007674 |
|
Name of the
company |
VODAFONE ESSAR CELLULAR LIMITED |
|
Address of the
registered office or of the principal place of business in |
|
|
This form is for |
Modification of
Charge |
|
Charge identification
number of the modified |
10142087 |
|
Type of charge |
Others |
|
Particular of
charge holder |
IL and FS Trust Company Limited, IL and FS Financial Centre, Plot No.
C22, G Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051, |
|
Nature of
instrument creating charge |
Notification to
the Department of Telecommunications, Government of |
|
Date of
instrument Creating the charge |
20.07.2009 |
|
Amount secured by
the charge |
Rs. 280000.000
Millions |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
Rate of Interest: Rate of Interest
to be fixed under the terms o f the individual facility agreement in respect
to debt secured under this charge Terms of
repayment Terms of
repayment are to be defined in the individual facility agreement in respect
to debt secured by this charge. Margin Margin is to be
defined in the individual facility agreement in respect to debt secured by
this charge Extent and
operations of the charge Original charges
were created on the telecom licences of the company for Maharashtra and The amount
secured is increased to Rs. 280000.000 Millions pursuant to the amendment
dated 25 May 2009 to the Amended and restate intercreditor agreement |
|
Short particulars
of the property charged |
Telecom Licences
of the company in respect to Maharashtra and |
|
Particulars of the
present modification |
Original charges
were created on the telecom licences of the company for Maharashtra and The amount
secured is increased to Rs. 280000.000 Millions pursuant to the amendment
dated 25 May 2009 to the Amended and restate intercreditor agreement |
Fixed assets
- Building
- Network Equipment
- Computers
- Office Equipment
- Furniture and fixture
- Vehicles
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 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. 44.94 |
|
|
1 |
Rs. 73.46 |
|
Euro |
1 |
Rs. 64.58 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
30 |
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.