MIRA INFORM REPORT

 

 

Report Date :

24.08.2013

 

IDENTIFICATION DETAILS

 

Name :

NETAS TELEKOMUNIKASYON A.S.

 

 

Registered Office :

Yenisehir Mah. Osmanli Bulv. No:11 Esas Aeropark Binasi Kurtkoy Istanbul

 

 

Country :

Turkey

 

 

Financials (as on) :

30.06.2013

 

 

Date of Incorporation :

11.03.1967

 

 

Com. Reg. No.:

94955

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacture and trade of communication equipments (phones, exchange-lines, energy systems...) also installation and providing communication solutions, infrastructure and network systems. 

 

 

No. of Employees :

1.728

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

Litigation :

Clear

 

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

 Turkey

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

TURKEY - ECONOMIC OVERVIEW

 

Turkey's largely free-market economy is increasingly driven by its industry and service sectors, although its traditional agriculture sector still accounts for about 25% of employment. An aggressive privatization program has reduced state involvement in basic industry, banking, transport, and communication, and an emerging cadre of middle-class entrepreneurs is adding dynamism to the economy and expanding production beyond the traditional textiles and clothing sectors. The automotive, construction, and electronics industries, are rising in importance and have surpassed textiles within Turkey's export mix. Oil began to flow through the Baku-Tbilisi-Ceyhan pipeline in May 2006, marking a major milestone that will bring up to 1 million barrels per day from the Caspian to market. Several gas pipelines projects also are moving forward to help transport Central Asian gas to Europe through Turkey, which over the long term will help address Turkey's dependence on imported oil and gas to meet 97% of its energy needs. After Turkey experienced a severe financial crisis in 2001, Ankara adopted financial and fiscal reforms as part of an IMF program. The reforms strengthened the country's economic fundamentals and ushered in an era of strong growth - averaging more than 6% annually until 2008. Global economic conditions and tighter fiscal policy caused GDP to contract in 2009, but Turkey's well-regulated financial markets and banking system helped the country weather the global financial crisis and GDP rebounded strongly to 9.2% in 2010, as exports returned to normal levels following the recession. Growth dropped to approximately 3% in 2012. Turkey's public sector debt to GDP ratio has fallen to about 40%, and at least one rating agency upgraded Turkey's debt to investment grade in 2012. Turkey remains dependent on often volatile, short-term investment to finance its large trade deficit. The stock value of FDI stood at $117 billion at year-end 2012. Inflows have slowed because of continuing economic turmoil in Europe, the source of much of Turkey's FDI. Turkey's relatively high current account deficit, uncertainty related to monetary policy-making, and political turmoil within Turkey's neighborhood leave the economy vulnerable to destabilizing shifts in investor confidence

 

Source : CIA

 

 

 

 

COMPANY IDENTIFICATION

 

 

NAME

:

NETAS TELEKOMUNIKASYON A.S.

HEAD OFFICE ADDRESS

:

Yenisehir Mah. Osmanli Bulv. No:11 Esas Aeropark Binasi Kurtkoy Istanbul / Turkey

PHONE NUMBER

:

90-216-522 20 00

 

FAX NUMBER

:

90-216-522 22 22

 

WEB-ADDRESS

:

www.netas.com.tr

 

 

LEGAL STATUS AND HISTORY

 

 

TAX OFFICE

:

Buyuk Mukellefler

TAX NO

:

6320001061

REGISTRATION NUMBER

:

94955

REGISTERED OFFICE

:

Istanbul Chamber of Commerce

DATE ESTABLISHED

:

11.03.1967

ESTABLISHMENT GAZETTE DATE/NO

:

12.04.1967/3027

LEGAL FORM

:

Joint Stock Company

TYPE OF COMPANY

:

Private

AUTHORIZED CAPITAL

:

TL   300.000.000

PAID-IN CAPITAL

:

TL   64.864.800

 

HISTORY

:

Previous Name

:

Netas Northern Electric Telekomunikasyon A.S.

Changed On

:

13.05.2003 (Commercial Gazette Date /Number 16.05.2003/ 5800)

Previous Name

:

Nortel Networks Netas Telekomunikasyon A.S.

Changed On

:

08.08.2011 (Commercial Gazette Date /Number 12.08.2011/ 7879)

Previous Address

:

Alemdag Cad. No:171 34678 Umraniye-Istanbul

Changed On

:

23.07.2013 (Commercial Gazette Date /Number 29.07.2013/ 8373)

Other Changes

:

Nortel Networks International Finance and Holding B.V. sold shares to Oep Rhea Turkey Tech B.V. general meeting dated 2.12.2010.

Other Changes

:

The paid-in capital was increased from TL 6.486.480 to TL 64.864.800

Changed On

:

30.07.2012 (Commercial Gazette Date /Number 03.08.2012/ 8126)

 

 

OWNERSHIP / MANAGEMENT

 

 

NOTES ON OWNERSHIP / MANAGEMENT

:

Quoted at Stock Exchange.

 

 

SHAREHOLDERS

:

Oep Rhea Turkey Tech B.V.

48,59 %

Turk Silahli Kuvvetlerini Guclendirme Vakfi

15 %

Others (Open to public)

36,41 %

 

 

REMARKS ON SHAREHOLDERS

:

We are informed that, Oep Rhea Turkey Tech B.V. is a foreign company located in Netherlands. 

 

Turk Silahli Kuvvetlerini Guclendirme Vakfi is the foundation of the Turkish military force.  

 

BOARD OF DIRECTORS

:

David Arthur Walsh

Chairman

Turk Silahli Kuvvetlerini Guclendirme Vakfi (representative: M. Cumhur Ozdemir)

Vice-Chairman

Alpaslan Korkmaz

Member

Haluk Kaya

Member

Joseph Patrick Hufesmith

Member

Mehmet Yazici

Member

 

 

DIRECTORS

:

C. Mujdat Altay                                                                                                                                                                                                                                                                                   

General Manager

 

 

OPERATIONS

 

 

BUSINESS ACTIVITIES

:

Manufacture and trade of communication equipments (phones, exchange-lines, energy systems...) also installation and providing communication solutions, infrastructure and network systems. 

 

Main customers of the company are “Aselsan”, “Turk Telekom A.S.”, “Turk Silahli Kuvvetleri (Turkish Armed Forces), “Vodafone” and “Avea”. 

 

NACE CODE

:

I .64.20

 

NUMBER OF EMPLOYEES

:

1.728

 

NET SALES

:

159.993.041 TL

(2001) 

151.209.858 TL

(2002) 

198.165.371 TL

(2003) 

206.882.136 TL

(2004) 

141.861.603 TL

(2005) 

113.712.952 TL

(2006) 

149.246.326 TL

(2007) 

182.789.083 TL

(2008) 

211.878.189 TL

(2009) 

270.985.009 TL

(2010) 

336.826.885 TL

(2011) 

550.164.740 TL

(2012) 

198.850.019 TL

(01.01-30.06.2013) 

 

 

IMPORT VALUE

:

27.500.000 USD

(2005)

25.749.301 USD

(2006)

21.232.556 USD

(2007)

46.442.963 TL

(2008)

59.508.439 TL

(2009)

39.747.981 TL

(2010)

73.836.822 TL

(2011)

335.350.946 TL

(2012)

54.881.880 TL

(01.01-30.06.2013)

 

 

IMPORT COUNTRIES

:

Canada

U.K.

 

MERCHANDISE IMPORTED

:

Telecommunication equipments

 

 

EXPORT VALUE

:

77.884.067 TL

(2003)

33.061.166 TL

(2004)

26.883.373 USD

(2005)

35.525.912 USD

(2006)

47.322.447 USD

(2007)

100.590.520 TL

(2008)

85.964.604 TL

(2009)

71.997.692 TL

(2010)

69.649.643 TL

(2011)

82.509.866 TL

(2012)

34.260.060 TL

(01.01-30.06.2013)

 

 

EXPORT COUNTRIES

:

Azerbaijan

Bangladesh

Mexico

Russia

U.K.

Kazakhstan

U.S.A.

Finland

Albania

Germany

Afghanistan

 

MERCHANDISE  EXPORTED

:

Telecommunication equipments

 

HEAD OFFICE ADDRESS

:

Yenisehir Mah. Osmanli Bulv. No:11 Esas Aeropark Binasi Kurtkoy  Istanbul / Turkey

 

BRANCHES

:

Store  :  Bu Yaka 2 Sit. Kule 2 K:15-16 Fatih Sultan Mehmet Mah. Poligon Cad. No:8B Tepeustu Umraniye Istanbul/Turkey

 

Head Office/Factory  :  Yenisehir Mah. Osmanli Bulv. No:11 Esas Aeropark Binasi Kurtkoy Istanbul/Turkey

 

Branch Office  :  Istanbul Deri ve Endustri Serbest Bolgesi (Free Zone) Hasan Yelmen Cad. No:1 K:1 Tuzla Istanbul/Turkey

 

Branch Office  :  Cinnah Cad. No:12  Kavaklidere Ankara/Turkey

                                                                                

 

 

TREND OF BUSINESS

:

There was an upwards trend in  2012. There appears a decline at business volume in nominal terms in  1.1 - 30.6.2013.

SIZE OF BUSINESS

:

Giant

 

 

FINANCE

 

 

MAIN DEALING BANKS

:

T. Is Bankasi Uskudar Branch

T. Is Bankasi Besiktas Branch

T. Is Bankasi Rihtim Branch

 

CREDIT FACILITIES

:

The subject company is making use of credit facilities.

 

PAYMENT BEHAVIOUR

:

No payment delays have come to our knowledge.

 

 

KEY FINANCIAL ELEMENTS

:

 

(2009) TL

(2010) TL

(2011) TL

(2012) TL

(01.01-30.06.2013) TL

Net Sales

211.878.189

270.985.009

336.826.885

550.164.740

198.850.019

Profit (Loss) Before Tax

18.918.392

18.557.791

21.254.116

22.848.610

-13.712.476

Stockholders' Equity

255.638.555

295.264.954

357.486.147

301.581.213

240.865.715

Total Assets

422.145.713

405.328.166

547.292.093

600.732.264

492.065.267

Current Assets

317.471.850

247.299.992

294.182.510

529.487.467

405.834.550

Non-Current Assets

104.673.863

158.028.174

253.109.583

71.244.797

86.230.717

Current Liabilities

152.397.218

101.244.034

171.125.805

272.764.691

228.400.906

Long-Term Liabilities

14.109.940

8.819.178

18.680.141

26.386.360

22.798.646

Gross Profit (loss)

25.896.484

30.068.848

46.483.855

59.838.520

16.976.103

Operating Profit (loss)

15.366.121

18.334.573

21.877.869

22.262.216

-12.368.373

Net Profit (loss)

24.851.535

22.969.604

17.976.660

17.088.788

-9.720.084

 

 

 

 

COMMENT ON FINANCIAL POSITION

 

Capitalization

In Order As of 30.06.2013

Liquidity

Satisfactory As of 30.06.2013

Remarks On Liquidity

The unfavorable gap between average collection and average payable period has an adverse effect on liquidity.

Profitability

Good Operating Profitability  in 2009

High Net Profitability  in 2009

Good Operating Profitability  in 2010

High Net Profitability  in 2010

Good Operating Profitability  in 2011

Good Net Profitability  in 2011

In Order Operating Profitability  in 2012

In Order Net Profitability  in 2012

Operating Loss (01.01-30.06.2013)

Net Loss (01.01-30.06.2013)

 

Gap between average collection and payable periods

Unfavorable in 01.01-30.06.2013

General Financial Position

Passable

 

 

 

Incr. in producers’ price index

 

Average USD/TL

Average EUR/TL

Average GBP/ TL

 ( 2001 )

88,60 %

1,1991

1,0714

1,7300

 ( 2002 )

30,80 %

1,5168

1,3741

2,2001

 ( 2003 )

13,90 %

1,5302

1,7141

2,4982

 ( 2004 )

13,84 %

1,4266

1,7666

2,6001

 ( 2005 )

2,66 %

1,3499

1,6882

2,4623

 ( 2006 )

11,58 %

1,4309

1,7987

2,6377

 ( 2007 )

5,94 %

1,3075

1,7901

2,6133

 ( 2008 )

8,11 %

1,2858

1,8876

2,3708

 ( 2009 )

5,93 %

1,5460

2,1529

2,4094

 ( 2010 )

8,87 %

1,5128

2,0096

2,3410

 ( 2011 )

13,33 %

1,6797

2,3378

2,6863

 ( 2012 )

2,45 %

1,7995

2,3265

2,8593

 ( 01.01-30.06.2013)

2,46 %

1,8251

2,3936

2,8262

 ( 01.01-31.07.2013)

3,48 %

1,8387

2,4151

2,8409

 

 

NOTES ON FINANCIAL STATEMENTS

:

Financial statements are consolidated.

 

 

 

 

BALANCE SHEETS

 

 

 ( 31.12.2009 )  TL

 

 ( 31.12.2010 )  TL

 

 ( 31.12.2011 )  TL

 

 ( 31.12.2012 )  TL

 

 ( 30.06.2013 )  TL

 

CURRENT ASSETS

317.471.850

0,75

247.299.992

0,61

294.182.510

0,54

529.487.467

0,88

405.834.550

0,82

Not Detailed Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Cash and Banks

98.944.767

0,23

90.002.456

0,22

27.279.024

0,05

103.960.281

0,17

33.003.790

0,07

Marketable Securities

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Account Receivable

97.600.080

0,23

109.084.316

0,27

189.979.950

0,35

307.040.271

0,51

222.927.144

0,45

Other Receivable

559.573

0,00

16.355.818

0,04

17.989.348

0,03

32.027.915

0,05

55.027.826

0,11

Inventories

22.039.025

0,05

19.708.499

0,05

37.187.034

0,07

38.162.815

0,06

47.036.616

0,10

Advances Given

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Accumulated Construction Expense

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Other Current Assets

98.328.405

0,23

12.148.903

0,03

21.747.154

0,04

48.296.185

0,08

47.839.174

0,10

NON-CURRENT ASSETS

104.673.863

0,25

158.028.174

0,39

253.109.583

0,46

71.244.797

0,12

86.230.717

0,18

Not Detailed Non-Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Long-term Receivable

0

0,00

0

0,00

293.218

0,00

0

0,00

0

0,00

Financial Assets

0

0,00

0

0,00

2.500

0,00

2.500

0,00

2.699

0,00

Tangible Fixed Assets (net)

101.564.881

0,24

156.907.766

0,39

193.465.907

0,35

17.762.582

0,03

28.835.176

0,06

Intangible Assets

1.108.215

0,00

735.728

0,00

55.651.292

0,10

49.884.848

0,08

54.063.263

0,11

Deferred Tax Assets

0

0,00

0

0,00

1.886.229

0,00

1.240.364

0,00

422.536

0,00

Other Non-Current Assets

2.000.767

0,00

384.680

0,00

1.810.437

0,00

2.354.503

0,00

2.907.043

0,01

TOTAL ASSETS

422.145.713

1,00

405.328.166

1,00

547.292.093

1,00

600.732.264

1,00

492.065.267

1,00

CURRENT LIABILITIES

152.397.218

0,36

101.244.034

0,25

171.125.805

0,31

272.764.691

0,45

228.400.906

0,46

Not Detailed Current Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

1.285.189

0,00

1.231.069

0,00

10.782.174

0,02

26.987.793

0,04

21.847.604

0,04

Accounts Payable

58.485.883

0,14

48.563.305

0,12

89.385.183

0,16

159.885.909

0,27

126.293.435

0,26

Loans from Shareholders

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Other Short-term Payable

2.872.134

0,01

6.611.518

0,02

11.287.753

0,02

15.798.135

0,03

16.537.898

0,03

Advances from Customers

12.543.765

0,03

5.846.383

0,01

15.161.120

0,03

20.810.098

0,03

25.669.039

0,05

Accumulated Construction Income

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Taxes Payable

0

0,00

0

0,00

595.183

0,00

2.598.218

0,00

212.848

0,00

Provisions

17.790.528

0,04

38.991.759

0,10

43.914.392

0,08

46.684.538

0,08

25.005.571

0,05

Other Current Liabilities

59.419.719

0,14

0

0,00

0

0,00

0

0,00

12.834.511

0,03

LONG-TERM LIABILITIES

14.109.940

0,03

8.819.178

0,02

18.680.141

0,03

26.386.360

0,04

22.798.646

0,05

Not Detailed Long-term Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

0

0,00

0

0,00

97.615

0,00

0

0,00

0

0,00

Securities Issued

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Long-term Payable

0

0,00

0

0,00

743.354

0,00

182.096

0,00

182.093

0,00

Loans from Shareholders

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Other Long-term Liabilities

8.281.309

0,02

612.437

0,00

0

0,00

12.757.390

0,02

8.439.423

0,02

Provisions

5.828.631

0,01

8.206.741

0,02

17.839.172

0,03

13.446.874

0,02

14.177.130

0,03

STOCKHOLDERS' EQUITY

255.638.555

0,61

295.264.954

0,73

357.486.147

0,65

301.581.213

0,50

240.865.715

0,49

Not Detailed Stockholders' Equity

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Paid-in Capital

6.486.480

0,02

6.486.480

0,02

6.486.480

0,01

64.864.800

0,11

64.864.800

0,13

Cross Shareholding Adjustment of Capital

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Inflation Adjustment of Capital

99.990.480

0,24

99.990.480

0,25

99.990.480

0,18

41.612.160

0,07

41.612.160

0,08

Equity of Consolidated Firms

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Reserves

61.676.692

0,15

46.149.874

0,11

86.720.976

0,16

178.015.465

0,30

144.108.839

0,29

Revaluation Fund

62.633.368

0,15

119.668.516

0,30

146.311.551

0,27

0

0,00

0

0,00

Accumulated Losses(-)

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Net Profit (loss)

24.851.535

0,06

22.969.604

0,06

17.976.660

0,03

17.088.788

0,03

-9.720.084

-0,02

TOTAL LIABILITIES AND EQUITY

422.145.713

1,00

405.328.166

1,00

547.292.093

1,00

600.732.264

1,00

492.065.267

1,00

 

 

REMARKS ON FINANCIAL STATEMENT

:

The financial statement of 31.12.2012 and 01.01.-30.06.2013 are consolidated and prepared by the consolidation of "Probil Bilgi Islem Destek ve Danismanlik San. ve Tic. A.S." (100 %) , Netas Telecom Limited Liability Partnership (100 %), BDH Bilisim Destek Hizmetleri Sanayi ve Ticaret A.S. (100 %)

 

 

 

INCOME STATEMENTS

 

(2009) TL

 

(2010) TL

 

(2011) TL

 

(2012) TL

 

(01.01-30.06.2013) TL

 

Net Sales

211.878.189

1,00

270.985.009

1,00

336.826.885

1,00

550.164.740

1,00

198.850.019

1,00

Cost of Goods Sold

185.981.705

0,88

240.916.161

0,89

290.343.030

0,86

490.326.220

0,89

181.873.916

0,91

Gross Profit

25.896.484

0,12

30.068.848

0,11

46.483.855

0,14

59.838.520

0,11

16.976.103

0,09

Operating Expenses

10.530.363

0,05

11.734.275

0,04

24.605.986

0,07

37.576.304

0,07

29.344.476

0,15

Operating Profit

15.366.121

0,07

18.334.573

0,07

21.877.869

0,06

22.262.216

0,04

-12.368.373

-0,06

Other Income

3.552.271

0,02

2.536.465

0,01

3.374.396

0,01

6.478.338

0,01

0

0,00

Other Expenses

0

0,00

0

0,00

0

0,00

5.891.944

0,01

0

0,00

Financial Expenses

0

0,00

2.313.247

0,01

3.998.149

0,01

0

0,00

1.344.103

0,01

Minority Interests

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Profit (loss) of consolidated firms

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Profit (loss) Before Tax

18.918.392

0,09

18.557.791

0,07

21.254.116

0,06

22.848.610

0,04

-13.712.476

-0,07

Tax Payable

0

0,00

0

0,00

874.042

0,00

11.947.764

0,02

212.848

0,00

Postponed Tax Gain

5.933.143

0,03

4.411.813

0,02

-2.403.414

-0,01

6.187.942

0,01

4.205.240

0,02

Net Profit (loss)

24.851.535

0,12

22.969.604

0,08

17.976.660

0,05

17.088.788

0,03

-9.720.084

-0,05

 

 

FINANCIAL RATIOS

 

(2009)

(2010)

(2011)

(2012)

(01.01-30.06.2013)

LIQUIDITY RATIOS

 

Current Ratio

2,08

2,44

1,72

1,94

1,78

Acid-Test Ratio

1,29

2,13

1,37

1,62

1,36

Cash Ratio

0,65

0,89

0,16

0,38

0,14

ASSET STRUCTURE RATIOS

 

Inventory/Total Assets

0,05

0,05

0,07

0,06

0,10

Short-term Receivable/Total Assets

0,23

0,31

0,38

0,56

0,56

Tangible Assets/Total Assets

0,24

0,39

0,35

0,03

0,06

TURNOVER RATIOS

 

Inventory Turnover

8,44

12,22

7,81

12,85

3,87

Stockholders' Equity Turnover

0,83

0,92

0,94

1,82

0,83

Asset Turnover

0,50

0,67

0,62

0,92

0,40

FINANCIAL STRUCTURE

 

Stockholders' Equity/Total Assets

0,61

0,73

0,65

0,50

0,49

Current Liabilities/Total Assets

0,36

0,25

0,31

0,45

0,46

Financial Leverage

0,39

0,27

0,35

0,50

0,51

Gearing Percentage

0,65

0,37

0,53

0,99

1,04

PROFITABILITY RATIOS

 

Net Profit/Stockholders' Eq.

0,10

0,08

0,05

0,06

-0,04

Operating Profit Margin

0,07

0,07

0,06

0,04

-0,06

Net Profit Margin

0,12

0,08

0,05

0,03

-0,05

Interest Cover

 

9,02

6,32

 

-9,20

COLLECTION-PAYMENT

 

Average Collection Period (days)

165,83

144,92

203,36

200,91

403,59

Average Payable Period (days)

113,21

72,57

111,75

117,52

250,34

WORKING CAPITAL

165074632,00

146055958,00

123056705,00

256722776,00

177433644,00

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.64.68

UK Pound

1

Rs.100.79

Euro

1

Rs.86.30

 

INFORMATION DETAILS

 

Report Prepared by :

NLM

 

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 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%)

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.