MIRA INFORM REPORT

 

 

Report Date :

01.11.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. INDOSAT TBK

 

 

Registered Office :

Gedung Indosat, 2nd Floor, Jl. Medan Merdeka Barat No. 21, Jakarta Pusat 10110

 

 

Country :

Indonesia

 

 

Financials (as on) :

30.06.2013

 

 

Date of Incorporation :

04.09.1997

 

 

Com. Reg. No.:

No. AHU-AH.01.10-37167

 

 

Legal Form :

Public Listed Company

 

 

Line of Business :

To provide telecommunications networks, telecommunication services and information technology and/or convergence technology services

 

 

No. of Employees :

4,540

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Status :

Good

Payment Behaviour :

Regular

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)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDONESIA - ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, grew more than 6% annually in 2010-12. The government made economic advances under the first administration of President YUDHOYONO (2004-09), introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth in 2009. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25%, a fiscal deficit below 3%, and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government in 2013 faces the ongoing challenge of improving Indonesia''s insufficient infrastructure to remove impediments to economic growth, labor unrest over wages, and reducing its fuel subsidy program in the face of high oil prices

Source : CIA


BASIC SEARCH

 

Name of company :

P.T. INDOSAT Tbk

 

A d d r e s s :

Head Office

Gedung Indosat, 2nd Floor

Jl. Medan Merdeka Barat No. 21

Jakarta Pusat 10110

Indonesia

Phones             - (62-21) 3000 3001, 3044 2615

Fax                   - (62-21) 3000 3757

Email                - investor@indosat.com

Website            - http://www.indosat.com

Building Area    - 8 storey

Office Space    - 1,200 sq. meters

Region              - Commercial

Status               - Owned

 

Date of Incorporation :

a. 10 November 1967 as PT. Indonesian Satellite Corporation

b. 04 September 1997 as PT. Indonesian Satellite Corporation Tbk or PT. INDOSAT Tbk

 

Legal Form :

P.T. Tbk. (Perseroan Terbatas Terbuka) or Public Listed Company

 

Company Reg. No. :

The Department of Law and Human Rights

- No. J.A. 5/88/24

Dated 20 November 1967

- No. C-04216.HT.01.04.TH.2006

Dated 15 February 2006

- No. AHU-31103.AH.01.02.Tahun 2009

Dated 07 July 2009

- No. AHU-09555.AH.01.02.Tahun 2010

Dated 22 February 2010

- No. AHU-AH.01.10-37167

Dated 16 October 2012

 

Company Status :

Foreign Investment Company (PMA)

 

Permit by the Government Departments :

a. The Department of Finance

NPWP No. 01.000.502.3-051.000

 

b. The Capital Investment Coordinating Board

No. 14/V/PMA/2003

Dated 07 February 2003

c. The Capital Market Supervisory Agency

No. S-1656/PM/1994

Dated 23 September 1994

 

Holding Company :

OOREDOO ASIA Pte. Ltd.,  (Ex. Qtel Asia), (Investment Holding)

 

Subsidiaries Companies :

a. P.T. APLIKANUSA LINTASARTA (Data Communication and Investment Holding)

b. P.T. LINTAS MEDIA DANAWARA (Communication and Information Provider Services)

c. P.T. ARTAJASA PEMBAYARN ELEKTRONIS (Telecommunication Services)

d. P.T. INDOSAT MEGA MEDIA (Multimedia and Investment Holding)

e. P.T. INTERACTIVE VISION MEDIA (Pay Television)

f.  P.T. STARONE MITRA TELEKOMUNIKASI (Telecommunication Services)

g. INDOSAT SINGAPORE Pte. Ltd., (Telecommunication and Investment Holding)

h. INDOSAT INTERNATIONAL FINANCE COMPANY B.V. (Financing Services)

i.  INDOSAT FINANCE COMPANY B.V. (Financing Services)

j.  INDOSAT PALAPA COMPANY B.V. (Financing Services)

k. INDOSAT MENTARI COMPANY B.V. (Financing Services)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital         - Rp. 2,000,000,000,000.-

Issued Capital               - Rp.    543,393,350,000.-

Paid up Capital             - Rp.    543,393,350,000.-

 

The Latest Shareholders :

a. The Government of the Republic of Indonesia             - Rp.   77,662,500,000.- (14.29%)

b. Ooredoo Asia Pte. Ltd. (Ex. Qtel Asia) of Singapore   - Rp. 353,205,660,000.- (65.00%)

c. SKAGEN Funds (SKAGEN AS)                                  - Rp.   29,938,240,000.- (  5.51%)

d. The Public (each holding below 5%)                           - Rp. 112,525,190,000.- (15.20%)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a. To provide telecommunications networks, telecommunication services and information

technology and/or convergence technology services.

b. Investment Holding

 

Production Capacity :

None

 

Total Assets (as of 31 Dec. 2012) :

Rp. 55,225.1 billion

 

Started Operation :

1 9 6 7

 

Brand Name :

INDOSAT

 

Technical Assistance :

Ooredoo Asia Pte. Ltd.,  (formerly QTel Asia), of Singapore

 

Number of Employee :

4,540 persons

 

Marketing Area :

Domestic and overseas market

 

Main Customers :

Publics and Corporate

 

Market Situation :

Very Competitive

 

Main Competitors :

a. PT. Telkomsel

b. PT. Telkom Tbk

c. PT. XL Axiata Tbk

d. Etc.

 

Business Trend :

Fluctuating

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank MANDIRI Tbk

b. P.T. Bank NEGARA INDONESIA Tbk.

c. P.T. Bank RAKYAT INDONESIA

d. P.T. Bank NEGARA INDONESIA

e. P.T. Bank Pembangunan Daerah DKI Jakarta

f. P.T. Bank Pembangunan Daerah Jawa Timur

 

Auditor :

Purwantono, Suherman & Surja (a member firm of Ernst & Young Global)

 

Litigation :

No litigation record in our database

 

 


FINANCIAL FIGURE

 

Total Income/Revenues :

2010 – Rp. 19,796.5 billion

2011 – Rp. 20,529.3 billion

2012 – Rp. 22,418.8 billion

2013 – Rp. 11,708.1 billion (as of 30 June 2013)

 

Net Profit (Loss) :

2010 –  Rp.    724.0 billion

2011 –  Rp. 1,066.7 billion

2012 –  Rp.    487.4 billion

2013 – (Rp.   169.2 billion) (as of 30 June 2013)

 

Payment Manner :

Almost promptly

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director & CEO          - Mr. Alexander Rusli

Directors                                   - a. Mr. Curst Stefan Carlsson

b. Mr. Frederik Johannes Meijer *

c. Mr. Hans Christian Moritz **

d. Mr. Fadzri Sentosa

 

*) On June 18, 2013, the company received a resignation letter from Mr. Frederik Johannes Meijer

**) On August 31, 2013, the company received a resignation letter from Mr. Hans Christian Moritz

 

Board of Commissioner :

President Commissioner            - Mr. Abdulla Mohammed S.A. Al Thani

Commissioners                         - a. Dr. Nasser Moh. A. Marafih

b. Mr. Rachmad Gobel

c. Mr. Richard Farnsworth Seney

d. Mr. Rionald Silaban

e. Mr. Rudiantara

f.  Mr. Chris Kanter

g. Mr. Thia Peng Hoek George

h. Mr. Soeprapto

i.  Mr. Beny Roelyawan

 

Signatories :

President Director (Mr. Alexander Rusli) or one of Directors (Mr. Curt Stefan Carisson or Mr. Fadzri Sentosa) which must be approved by the president commissioner (Mr. Abdulla Mohammed S.A. Al Thani) and  other commissioner members

CAPABILITIES

 

Management Capability :

G o o d

 

Business Morality :

G o o d

 

Credit Risk :

Below average

 

Credit Recommendation :

Credit can be proceeded normally

 

Proposed Credit Limit :

Moderate amount

 

 

OVERALL PERFORMANCE

 

Initially named P.T. INDONESIAN SATELLITE CORPORATION (P.T. INDOSAT), the company was established in the Republic of Indonesia  on November 10, 1967 within the frame work of the Indonesian Foreign Investment Law No. 1 of 1967 based on the notarial deed No. 55 of notary Mohamad Said Tadjoedin, SH., with the authorized capital of Rp. 20,000,000.- of which Rp. 2,000,000.- was issued and paid up. The founding shareholders of the company are American Cable and Radio Corporation, a sister company of US Telephone and Telegraph Corporation based in Delaware, USA.  The Deed of establishment was approved by the Minister of Justice of the Republic of Indonesia through its Letter No. J.A. 5/88/24 dated November 20, 1967.

 

The company’s articles of association have been amended several times.  In 1980, the Company was sold by American Cable and Radio Corporation to the Government of the Republic of Indonesia (“the Government”) and became a State –owned Company (Persero).  In 1994, P.T. INDOSAT became a public listed company by releasing 35% shares to public through the New York Stock Exchange of 27.25% and through the Jakarta Stock Exchange of 7.75%.  Concurrently the authorized capital was raised to Rp 2,000,000,000,000.- of which rp 517,750,000,000.- was issued and fully paid up.  On September 4, 1997 behind the name was added by the work “Terbuka” (Tbk) to become P.T. INDOSAT Tbk.

 

On May 16, 2002, the Government sold 8.1% of the company’s outstanding common stock through an accelerated global tender, reducing the Government’s shareholding to 56.9%.  On December 20, the Government sold 41.9% of the company’s outstanding common stock to ICLM (described below), further reducing the Government’s shareholding to 15.0%.  On December 15, 2002, the government through State Minister of State Owned Companies Affairs announced that STT Communications Ltd., (STT) was declared as the winner of P.T. INDOSAT Tbk., divestment (Rp 12,950 per share) worth Rp 5.62 trillion and paid in December 2002.

 

In June 2008, Qatar Telecom Pte. Ltd., (Qtel Asia) acquired STT’s interest in P.T. INDOSAT Tbk., triggering a mandatory tender offer by Qtel to acquire up to 1,314,466,775 Series B Shares, representing approximately 24.185 of their total issued and outstanding Series B Shares, at a purchase price so the US dollar equivalent of Rp 369,400 per ADS and Rp 7,388 per Series B share.  Qtel is a publicly held corporation which is majority-owned by the State of Qatar and its affiliated entities.  Qtel is organized under the laws of the State of Qatar with shares listed on the Doha Securities Market, as well as the Abu Dhabi Securities Markets and Global Depository Receipts traded on the London Stock Exchange.  On March 7, 2013,  Qatar Telecom Pte. Ltd., (Qtel Asia) changed its name to Ooredoo Asia Pte. Ltd.

 

As of March 31, 2013, the authorized capital of P.T. INDOSAT Tbk., is Rp. 2,000,000,000,000.- of which Rp. 543,393,350,000.- was issued and fully paid up.  The shareholders of the company are The Government of the Republic of Indonesia (14.29%), Ooredo Asia Pte. Ltd., (65.00%), Skagen Funds or Skagen AS (5.51%) and Public (15.20%).

 

We observed that P.T. INDOSAT is a fully integrated Indonesian telecommunications networks and services provider.  The company offers a full complement of national and international telecommunications services in Indonesia and the second-largest cellular operator as measured by number of cellular subscribers and a leading provider of international long-distance services in Indonesia.  The Company also provides MIDI services for domestic and regional corporate and wholesale customers as well as domestic retail customers.  For the years ended December 31, 201, 2011 and 2012, their operating revenues totaled Rp 19,752.1 billion, Rp 22,531.6 billion and Rp 22,420.6 billion respectively.

 

The company’s principal products and services include:

 

a.     Cellular services, The Company provide GSM 900 and 1800 and 3G cellular services to approximately 58.5 million cellular subscribers (including wireless broadband subscribers) throughout Indonesia, as of December 31, 2012.  The company also commenced providing wireless broadband services using their 3G platform in 2006 and as of December 31, 2012 had approximately 500,000 subscribers.

 

b.    MIDI services.  The Company provides broadband and narrowband MIDI services consisting of Internet services and data communication services, such as International and Domestic Leased Circuit, and MPLS-based services.  The Company also offers satellite-based services such as transponder leasing and VSAT services and IT services, such as Disaster Recovery Center, Data Center services and Indosat Cloud Services.  The Company provides these services directly and through their subsidiaries, Lintasarta and IM2.  The company offers this suite of products and services primarily to their valued corporate and wholesale customers in an attempt to be their information and telecommunication solution provider.

 

c.     Fixed telecommunications (voice) services.  The Company is one of the leading providers of international long-distance services in Indonesia, as measured by aggregate incoming and outgoing call minutes for 2012.  To complement their cellular services and to enhance their access to domestic and international long-distance customers.  The Company also provides fixed wireless access services using CDMA 2000 1x technology.  The Company has also provided DLD services since 2003 and local fixed telephony services since 2002.

 

As of December 31, 2012, their postpaid cellular subscribers could roam international in 185 countries.  In addition, for their international long-distance services, the Company maintain direct connections with 634 foreign telecommunications operators in 40 countries.   A part of the global coverage, the Company offers international calling services to Iran and to Cuba, Sudan and Syria.  There are  roaming arrangement between Indosat and each of Mobile Company of Iran (MCI), C Com, Syriatel Mobile Telecom SA (“Syriatel”) and Sudanese Mobile Telephone Co. (“Mobitel”) for Iran, Cuba, Syria and Sudan, respectively.

 

Beside, P.T. INDOSAT Tbk., has ownership interest of more than 50% in the following subsidiaries which are engaged in financing services, telecommunication services, multimedia, pay TV, information and communication services. The table of P.T. INDOSAT Tbk’s subsidiary companies shall be as follows:

 

(In Rp million)

Name of Subsidiary

Lines of Business

Start of Operations

% of Ownership

Total Assets

(31 Dec. 2012)

Indosat Palapa Company B.V.

Financing services

2010

100.00

6,442,367

Indosat Mentari Finance Company B.V.

Financing services

2010

100.00

6,436,524

Indosat Financ Company B.V.

Financing services

2003

100.00

21,963

Indosat International Finance Company B.V.

Financing services

2005

100.00

8,853

Indosat Singapore Pte. Ltd.

Telecommunication

2005

100.00

99,519

PT. Indosat Mega Media

Multimedia services

2001

99.85

805,942

PT. Interactive Vision Media

Pay TV

2011

99.83

5,448

PT. Starone Mitra Telekomunikasi

Telecommunication

2006

72.54

250,726

PT. Aplikanusa Lintasarta

Data Communication

1989

72.36

2,034,858

PT. Lintas Media Danawa

Information and Communication services

2008

50.65

3,760

PT. Artajasa Pembayaran Elektronis

Telecommunication

2000

39.80

372,556

Source: PT. Indosat Tbk.

 

According to the financial statement of the company having been audited by registered public accountant (Purwantono, Suherman & Surya), total income/revenues of P.T. INDOSAT Tbk. in 2010 amounted to Rp. 19,796.5 billion with a net profit of Rp. 724.0 billion incresed to Rp. 20,529.3 billion with a net profit of Rp. 1,066.7 billion in 2011 and rose again to Rp. 22,418.8 billion with a net profit of Rp. 487.4 billion in 2012. As of June 30, 2013, its total income/revenue was Rp. 11,708.1 billion with a net loss of Rp. 169.2 billion.  The company’s balance sheets and statement of income in fiscal 2010, 2011, 2012 and as of June 30, 2013 are attached.   So far we did not hear that the P.T. INDOSAT Tbk., has been black listed by Bank Indonesia (Central Bank) or having detrimental cases being settled in local district court.

 

The management of the company is headed by Mr. Alexander Rusli (42), completed all his formal tertiary education in Curtin University, Western Australia.  He holds a Doctor of Philosophy degree in Information.   Mr. Rusli assumed the role of President Director and CEO of the Company, as of November 2012 after serving as an Independent Commissioner since January 2010.  Before November 2012, Mr. Rusli was a Managing Director in Northstar Pacific, a Private Equity fund which focuses on Indonesian opportunities.  Prior to his role in Northstar Pacific, Mr. Rusli served the Government of Indonesia for nine years.  In daily activities, he is assisted by four directors namely Mr. Curst Stefan Carlsson (42) and Mr. Fadzri Sentosa (50).   The management has good reputation in telecommunication business and wide relation with private businessmen of home and overseas as well as with the government sectors.  The management is having maintained a wide business relation with private businessmen at home and abroad and with the government sectors as well.  So far, we did not hear that the company’s management involved in the business practices or detrimental cases that settled in the country. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

P.T. INDOSAT Tbk., is sufficiently fairly good for business transaction. However In view of the unstable economic condition in the country, we recommend to treat prudently in business transaction and in extending a loan to the company.

 

Attachment:

 

P.T. INDOSAT Tbk and Its Subsidiaries

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As of 31 December 2010, 2011, 2012 and as of June 30, 2013

 

(in Rp million)

D e s c r i p t i o n

30 June

31 December

2013

2012

2011

2010

ASSETS

 

 

 

 

a. Current Assets

 

 

 

 

- Cash and cash equivalents

1,798,075

3,917,236

2,224,206

2,075,270

- Trade account receivables

 

 

 

 

* Related parties

881,656

574,650

318,243

207,289

* Third parties

1,649,823

1,464,069

1,181,853

1,328,987

- Other receivables

114,210

22,441

5,660

10,031

- Investments

53,136

52,556

75,890

105,885

- Derivative Assets

33,082

69,654

159,349

69,334

- Advances

62,777

36,057

40,485

28,166

- Prepaid taxes

604,317

294,343

30,695

49,903

- Prepaid licenses and frequency cost

819,472

1,528,215

1,353,819

1,202,009

- Other prepaid cost

365,197

335,815

351,833

325,245

- Other current financial assets

11,020

13,382

24,790

53,119

- Other current assets

5,461

392

742

702

Total Current Assets

6,398,226

8,308,810

5,767,565

5,455,940

 

 

 

 

 

b. Non-current Assets

 

 

 

 

- Due from related parties

7,274

10,358

10,654

8,421

- Deferred tax assets – net

97,946

100,693

113,812

94,659

- Fixed assets – net

42,379,096

41,964,793

43,505,698

44,062,036

- Goodwill

1,366,698

1,373,707

1,366,853

1,374,060

- Long-term prepaid lease

777,939

755,237

766,349

750,472

- Long-term prepaid Licenses

233,106

266,027

331,868

397,708

- Long-term advances

59,477

40,994

161,649

213,975

- Long-term prepaid pension

87,499

88,845

103,181

111,344

- Long-term receivables

15,675

17,959

20,677

45,911

- Other non-current financial assets

1,374,350

1,543,140

212,270

150,604

- Other non-current assets

826,299

754,498

872,436

659,998

Total Current Assets

47,225,359

46,916,251

47,465,447

47,869,188

TOTAL ASSETS = TOTAL LIABILITIES &

EQUITY

53,623,585

55,225,061

53,233,012

53,325,128

LIABILITIES AND EQUITY

 

 

 

 

a. Short-term Liabilities

 

 

 

 

- Short-term loans

949,689

299,529

1,499,256

--

- Trade payable

 

 

 

 

* Related parties

89,296

22,650

23,581

22,260

* Third parties

325,494

209,087

295,477

623,245

- Provision payable

2,755,581

2,737,850

3,475,862

3,642,002

- Taxes payable

80,615

95,599

91,206

172,512

- Accrual

1,982,576

1,961,285

1,895,613

1,796,335

- Unearned income

1,331,146

1,073,088

1,032,415

1,106,610

- Customer advances

41,785

43,825

37,265

50,279

- Derivative liabilities

40,759

81,241

138,189

215,403

- Short-term portion of long-term liabilities

2,186,802

2,669,218

3,300,537

3,184,147

- Bonds payable

1,628,120

1,329,175

41,989

1,098,131

- Other short-term financial liabilities

510,192

289,164

71,828

52,413

- Other short-term liabilities

214,335

204,404

64,849

61,612

Total Short-term  Liabilities

12,136,390

11,015,751

11,968,067

12,024,949

 

 

 

 

 

b. Long-term Liabilities

 

 

 

 

- Payable to related parties

28,744

42,789

15,480

22,099

- Finance lease liabilities

3,141,125

3,101,910

770,081

416,587

- Deferred tab liabilities

1,584,278

1,684,270

1,956,352

1,792,629

- Long-term liabilities – net of current

maturities

2,999,161

3,703,822

6,425,779

7,666,804

- Bonds payable – not of current maturities

12,535,473

13,986,507

12,138,353

12,114,104

- Post employment benefit obligation

1,025,652

926,224

787,313

872,407

- Other long-term financial liabilities

55,268

69,273

107,433

45,815

- Other long-term liabilities

1,245,283

1,299,131

95,054

114,360

Total Long-term  Liabilities

22,614,984

24,813,926

22,295,845

23,044,805

 

 

 

 

 

c.  Equity

 

 

 

 

- Capital stock and share capital

543,393

543,393

543,393

543,393

- Additional paid-in capital

1,546,587

1,546,587

1,546,587

1,546,587

- Retained earning

 

 

 

 

* Appropriated

134,446

134,446

134,446

134,446

* Un-appropriated

15,427,988

15,846,721

15,889,104

15,244,044

- Difference in equity transaction

404,104

404,104

404,104

404,104

- Foreign currency translation adjustments

(3,941)

(3,600)

(2,326)

(2,727)

- Change in fair value of investments

269,805

389,718

--

--

- Non-controlling interests

549,829

534,015

453,792

385,527

Total Equity

18,872,211

19,395,384

18,969,100

18,255,374

 

 

 

 

 

STATEMENT OF INCOME

 

 

 

 

- Revenues

 

 

 

 

* Cellular phone

9,571,785

18,489,329

16,587,385

16,027,062

* Multimedia, Data Communication,

Internet (MIDI)

1,599,958

2,908,033

2,691,925

2,476,276

* Fixed Telecommunication

536,316

1,021,450

1,249,982

1,293,177

- Total Revenues

11,708,059

22,418,812

20,529,292

19,796,515

- Total Operating expenses

(10,514,132)

(19,228,789)

(17,364,983)

(16,355,165)

- Operating Profit

1,193,927

3,190,023

3,164,309

3,441,350

- Other income (expenses)

(1,403,681)

(2,728,405)

(1,832,952)

(2,359,533)

- Profit Before Tax

(209,754)

461,618

1,331,357

1,081,817

- Tax benefit (expenses)

40,534

25,798

(264,613)

(357,798)

- Net Profit (Loss)

(169,220)

487,416

1,066,744

724,019

Remarks:  31 December 2010, 2011 and 2012 audited by Purwantono, Suherman & Surya (Ernst & Young Global)

30 June 2013 un-audited


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.49

UK Pound

1

Rs.98.71

Euro

1

Rs.84.49

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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

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NB

                                       New Business

 

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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.