MIRA INFORM REPORT

 

 

Report Date :

14.05.2013

 

IDENTIFICATION DETAILS

 

Name :

VODAFONE SOUTH LIMITED [w.e.f.13.10.2011]

 

 

Formerly Known As :

VODAFONE ESSAR SOUTH LIMITED [w.e.f.04.07.2007]

 

HUTCHISON ESSAR SOUTH LIMITED

 

 

Registered Office :

C-48, Okhla Industrial Area, Phase II, New Delhi - 110020

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

07.12.1995

 

 

Com. Reg. No.:

55-074451

 

 

Capital Investment / Paid-up Capital :

Rs. 7016.100 Millions

 

 

CIN No.:

[Company Identification No.]

U74899DL1995PLC074451

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELH05216B

 

 

PAN No.:

[Permanent Account No.]

AABCB5847L

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing Mobile Telecommunication Services.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (50)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 81300000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject belongs to “Vodafone Group Plc”.

 

It is a well established company having a good track record. The company has recorded better growth in its sales during 2012.

 

Financial strength of the company is strong. Liquidity position is good.

 

Trade relations are reported to be fair. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered for normal 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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

Term Loan : (CRISIL) AA

Rating Explanation

Having high degree of safety regarding timely servicing of financial obligation it carry very low credit risk.

Date

September 2012

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

LOCATIONS

 

Registered Office :

C-48, Okhla Industrial Area, Phase II, New Delhi - 110020, India

Tel. No.:

Not Available

Fax No.:

Not Available

E-Mail :

pushkaraj.joshi@vodafone.com

kapil.agarwal@vodafone.com

 

 

DIRECTORS

 

AS ON 28.09.2012

 

Name :

Mr. Sunil Sood

Designation :

Managing director

Address :

Flat No. 2401/2402, Petit Towers, August Kranti Marg, Kemps Corner, Mumbai-400036, Maharashtra, India

Date of Birth/Age :

09.02.1961

Date of Appointment :

09.07.2010

DIN No.:

03132202

 

 

Name :

Mr. Suresh Bagrodia

Designation :

Director

Address :

Flat No. 601/2, Green Acres, Building No. 1B, Lokhandwala Complex, Andheri [West], Mumbai – 400053, Maharashtra, India

Date of Birth/Age :

21.08.1967

Date of Appointment :

16.02.2012

DIN No.:

05201062

 

 

Name :

Mr. Sanjoy Subhod Mukherjee

Designation :

Director

Address :

B-1, Maharani Bagh, New Delhi – 110065, India

Date of Birth/Age :

07.11.1963

Date of Appointment :

25.06.2012

DIN No.:

03122800

 

 

Name :

Mr. Bhuvanesh Pratap Singh

Designation :

Director

Address :

Flat No. 904, Olympus II, Prestige Acropolis No. 20, House Road, Bangalore – 560029, Karnataka, India

Date of Birth/Age :

01.05.1960

Date of Appointment :

25.06.2012

DIN No.:

05307640

 

 

KEY EXECUTIVES

 

Name :

Mr. Pradeep Goel

Designation :

Secretary

Address :

No. D-408, Olive Block, Raheja Residency, 3rd Block, Koramangala, Bangalore-560034, Karnataka, India

Date of Birth/Age :

18.06.1970

Qualification :

I.C.W.A./C. A./Company Secretary/B. Com.

Experience :

17 year(s) and 1 month(

Date of Appointment :

09.02.2010

PAN No.:

AAEPG2140H

 

 

Name :

Raman Kumar

Designation :

Vice President

 

 

Name :

Subrat Padhi

Designation :

Chief Operating Officer

 

 

Name :

Vivek Jhamb

Designation :

CEO – Carrier Business

 

 

Name :

Apoorva Mehrotra

Designation :

Business Head - Karnataka Circle

 

 

Name :

B. M. Kamath

Designation :

Vice President - Network Ops

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 28.09.2012

 

Names of Equity Shareholders

 

No. of Shares

 

Central Depository Services (India) Limited - Beneficiary - Vodafone India Limited, India

 

264,407,500

Vodafone Mobile Services Limited, India

 

274,199,992

Vodafone Mobile Services Limited, India

 

999,998

Vodafone Mobile Services Limited, India

 

4

Vodafone Spacetel Limited Jointly with Vodafone Mobile Services Limited, India

 

2

Vodafone Cellular Limited Jointly With Vodafone Mobile Services Limited, India

 

1

Vodafone East Limited Jointly with Vodafone Mobile Services Limited, India

 

1

Vodafone Digilink Limited Jointly with Vodafone Mobile Services Limited, India

 

1

Vodafone West Limited Jointly with Vodafone Mobile Services Limited, India

 

1

 

 

 

Total

 

539,607,500

 

 

Names of Preference Shareholders

 

No. of Shares

 

Vodafone Mobile Services Limited, India

 

200,000

 

 

 

Total

 

200,000

 

 

Names of Preference Shareholders

 

No. of Shares

 

Vodafone West Limited, India

 

1,600

 

 

 

Total

 

1,600

 

 

AS ON 28.09.2012

 

Equity Share Breakup

 

Percentage of Holding

Category

 

 

Bodies corporate

 

100.00

Total

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Providing Mobile Telecommunication Services.

 

 

Products :

ITC Code

Product Descriptions

99841310

Mobile telecommunications services - access and use

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

Not Available

 

 

Facilities :

 

Secured Loans

31.03.2012

31.03.2011

 

 

(Rs. In Millions)

Term loans from banks

26918.800

30980.200

Total

26918.800

30980.200

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address :

12, Dr Annie Besant Road, Opposite Shiv Sagar Estate, Worli, Mumbai – 400018, Maharashtra, India

Income-tax PAN of auditor or auditor's firm :

AACFD4815A

 

 

Holding Company :

Ř  Vodafone India Limited [U32200MH1992PLC119108]

Ř  Vodafone Mobile Services Limited [U64202DL1992PLC088087]

 

 

Ultimate Holding Company :

Vodafone Group Plc. #

 

 

Intermediate Holding Company :

Vodafone International Holdings B.V. #

 

 

Fellow Subsidiary Company :

Ř  Vodafone East Limited [U32204WB1992PLC079998]

Ř  Vodafone Digilink Limited [U64201DL1997PLC088088]

Ř  Vodafone Cellular Limited [U64202TZ1995PLC007674]

Ř  Vodafone Overseas Finance Limited

Ř  Vodafone Spacetel Limited [U72200DL1997PLC085764]

Ř  Vodafone West Limited [U32100GJ1995PLC035282]

Ř  Vodafone Infrastructure Limited [U51101DL2007PLC180238]

Ř  Vodafone Ireland Marketing Limited

Ř  Vodafone Investments Luxembourg S.a.r.l.

Ř  Connect (India) Mobile Techologies Private Limited (w.e.fFebruary 24, 2012)

Ř  Vodafone Shared Services Limited

Ř  Mobile Commerce Solutions Limited

Ř  Vodafone Group Services Limited

Ř  Vodafone India Services Private Limited

Ř  Vodafone Fiji Limited

Ř  Vodafone Espana S.A.

Ř  Societe Francaise Du Radiotelephone (Sfr)

Ř  Vodafone Qatar Q.S.C.

Ř  Dialog Telekom PLC

Ř  Gateway Communications Africa (UK) Limited

Ř  MobileOne Limited

Ř  Vodafone Alternatif Telekom Hizmetleri A.S.

Ř  Vodafone Sales and Services Limited (w.e.f October 15, 2011)

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

540000000

Equity Shares

Rs. 10/- each

Rs. 5400.000 Millions

200000

Preferences Shares

Rs.100/- each

Rs. 20.000 Millions

5000

Preferences Shares

Rs.1000000//- each

Rs. 5000.000 Millions

 

Total

 

Rs. 10420.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

539607500

Equity Shares

Rs.10/- each

Rs. 5396.100 Millions

200000

Preferences Shares

Rs.100/- each

Rs. 20.000 Millions

1600

Preferences Shares

Rs.1000000/- each

Rs. 1600.000 Millions

 

Total

 

Rs. 7016.100 Millions

 


 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

7016.100

7016.100

7016.100

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

13300.800

4134.500

59.700

4] (Accumulated Losses)

0.000

0.000

(581.200)

NETWORTH

20316.900

11150.600

6494.600

LOAN FUNDS

 

 

 

1] Secured Loans

26918.800

30980.200

39104.000

2] Unsecured Loans

34268.000

26457.100

20043.000

TOTAL BORROWING

61186.800

57437.300

59147.000

DEFERRED TAX LIABILITIES

0.000

0.000

14.700

 

 

 

 

TOTAL

81503.700

68587.900

65656.300

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

67476.600

64248.900

65599.300

Capital work-in-progress

7007.200

7444.000

6350.800

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERRED TAX ASSETS

2293.000

110.700

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

0.000

0.000

0.000

 

Sundry Debtors

4020.200

3013.100

12775.100

 

Cash & Bank Balances

5428.300

2724.100

1677.000

 

Other Current Assets

19815.400

20482.900

0.000

 

Loans & Advances

18481.200

13129.600

7822.300

Total Current Assets

47745.100

39349.700

22274.400

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

20337.600

22274.300

21713.600

 

Other Current Liabilities

20008.400

18846.200

5655.100

 

Provisions

2672.200

1444.900

1199.500

Total Current Liabilities

43018.200

42565.400

28568.200

Net Current Assets

4726.900

(3215.700)

(6293.800)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

81503.700

68587.900

65656.300

 


PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue from operations

71404.700

62773.300

80515.700

 

 

Other Income

889.800

209.700

2760.500

 

 

TOTAL                                     (A)

72294.500

62983.000

83276.200

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

52954.500

46304.000

 

 

Employee benefit expense

2145.500

1947.400

 

 

 

Other expenses

15298.200

13609.100

 

 

 

Exceptional items before tax

1730.100

1298.900

 

 

 

TOTAL                                     (B)

72128.300

63159.400

59442.300

 

 

 

 

 

Less

PROFIT BEFORE/ (LOSS) INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)     (C)

166.200

(176.400)

23833.900

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

7862.600

7910.600

6432.200

 

 

 

 

 

 

PROFIT BEFORE/ (LOSS) TAX, DEPRECIATION AND AMORTISATION (C-D)                               (E)

(7696.400)

(8087.000)

17401.700

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

9862.400

8488.500

12197.800

 

 

 

 

 

 

PROFIT/ (LOSS) BEFORE TAX (E-F)                 (G)

(17558.800)

(16575.500)

5203.900

 

 

 

 

 

Less

TAX                                                                  (H)

(26725.100)

(21291.200)

2235.200

 

 

 

 

 

 

PROFIT/ (LOSS) AFTER TAX (G-H)                   (I)

9166.300

4715.700

2968.700

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

4134.500

(581.200)

(3549.900)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

13300.800

4134.500

(581.200)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Roaming / IUC Revenue

102.300

3860.300

2786.300

 

 

Other Revenue

4822.100

8.400

0.000

 

TOTAL EARNINGS

4924.400

3868.700

2786.300

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

9838.600

7847.200

7723.400

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

16.99

8.74

5.50

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

12.68
7.49

3.56

 

 

 
 

 

Net Profit Margin

(PBT/Sales)

(%)

(24.59)
(26.41)

6.46

 

 

 
 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(15.24)
(16.00)

5.92

 

 

 
 

 

Return on Investment (ROI)

(PBT/Networth)

 

(0.86)
(148.65)

0.80

 

 

 
 

 

Debt Equity Ratio

(Total Debt/Networth)

 

3.01
5.15

9.11

 

 

 
 

 

Current Ratio

(Current Asset/Current Liability)

 

1.11
0.92

0.78

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

--

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

--

22]

Litigations that the firm / promoter involved in

--

23]

Banking Details

No

24]

Banking facility details

Yes

25]

Conduct of the banking account

--

26]

Buyer visit details

--

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

Yes

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

UNSECURED LOANS

 

Unsecured Loans

31.03.2012

31.03.2011

 

 

(Rs. In Millions)

Loans and advances from related parties

4574.700

0.000

Long-term maturities of finance lease obligations

90.100

95.400

Loans repayable on demand from banks

10652.600

9737.500

Loans repayable on demand from others

18950.600

16624.200

Total

34268.000

26457.100

 

 

BACKGROUND

 

The Company is engaged in providing mobile telecommunication services in the West Bengal, Andhra Pradesh, Karnataka, Chennai, Punjab, UP West, NLD and ILD Circles. In October 2011, the Company changed its name from Vodafone Essar South Limited to Vodafone South Limited. During the financial year ended March 31 2011, the Company had transferred its passive infrastructure assets to a fellow subsidiary in accordance with a Scheme of Demerger approved by the High Court.

 

 

OPERATIONS

 

The year ended March 2012 has been a good year for the Company. The favourable revenue performance was primarily due to both higher Outbound and Inbound Voice and greater Messaging and Data usage. During the year under review, the Company has wide nedits subscriber base by launch of various segmented products.

 

The company's customer base (incl. Tamilnadu) grew toalandmark51.2 million subscribers with a growth rate of 7.5% on a year on year basis. Your Company (incl. Tamilnadu) continues to be the leading operator, having a Revenue market share of 17.9%( Includes fixed line revenue of all operators) as at 31 March2012in a very competitive multi-player market.

 

During the year 2011-12, 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 has added 1,385 more cell sites to enhance its network coverage, closing with a total of 34,838cellsites as at 31 March 2012.

 

 

OUTLOOK FOR 2012-13

 

Intense competition is expected to continue in FY 2012-13bothinthe voice and data (2G & 3G) space. However, uncertainties on the regulatory front and high reserve price fixed by the Government for the 2G auction is expected to result in consolidation in the market. With margins coming under pressure, it is expected that operators would strengthen the rate per minute further in the coming year. Vodafone is one among the top multinational consumer brands in India, and it is expected that subscribers will continue to patronize the Company for the high customer focus and reliable network.

 

The revenue from data is expected to grow significantly in the coming year after the recent price rationalization and with Company's enhanced focus on 3G and value added service. Low price point smart phones and drop in rate per Mb is expected to result in steep increase in data usage and revenue. In addition, plans to attract new high value quality customers and retain existing customers are in place. The focus on cost reduction and working capital improvement will continue with more rigor in the coming year. Given the strong presence in the circles in which the company operates and brand strength of Vodafone India group, your company is confident of delivering consistent results.

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2012

31.03.2011

 

(Rs. in Millions)

(a) Additional charges for license fees levied by Department of Telecommunications and contested by the Company

372.200

126.900

(b) Show cause notice received from Department of Telecommunications regarding short paymentoflicensefeesfor2006-07 and 2007-08 relating to the computation of AGR for determining license fees payable

644.500

0.000

Demands from BSNL for port charges

142.400

190.600

Income Tax matters pending in appeals towards disallowances of license fees ,other disallowances and non deduction of tax at source

5812.800

5736.700

Service Tax demands in respect of disallowance of CENVAT credit on towers, shelters and other matters

2406.500

1156.200

Sales tax demand relating to computation of tax liability, submission of statutory forms, penalty, SIMs and other matters

216.700

863.600

Consumer/Civil cases against the Company

284.300

18.600

Other claims

159.700

143.000

Guarantees:

 

 

Guarantees given by bankers to third parties, counter guaranteed by the Company.

1327.100

978.500

Joint and several guarantees given to Banks by the Company together with its holding company and certain of its fellow subsidiaries for loans , including interest thereon

319096.600

310880.200

Loans outstanding

270854.700

267061.400


FIXED ASSETS:

 

Ř  Plant and equipment

Ř  Furniture and fixtures

Ř  Vehicles

Ř  Office equipment

Ř  Computer equipments

Ř  Other equipments

Ř  Leasehold improvements

Ř  Computer software

Ř  License/ Spectrum fees


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No 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. 54.92

UK Pound

1

Rs. 84.44

Euro

1

Rs. 71.32

 

 

INFORMATION DETAILS

 

Report Prepared by :

BVA

 


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

6

--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

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTERS 

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

50

 

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

-

 

 

 

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.