MIRA INFORM REPORT

 

 

Report Date :

17.09.2013

 

IDENTIFICATION DETAILS

 

Name :

P.T. HANJAYA MANDALA SAMPOERNA TBK

 

 

Formerly Known As :

P.T. HANJAYA MANDALA SAMPOERNA

 

 

Registered Office :

Jalan Rungkut Industry Raya No. 14-18, Surabaya 60293, East Java

 

 

Country :

Indonesia

 

 

Financials (as on) :

30.06.2013 (Consolidated)

 

 

Year of Establishments:

1913

 

 

Com. Reg. No.:

No. AHU-0006503.AH.01.09.Tahun 2010

 

 

Legal Form :

Public Listed Company

 

 

Line of Business :

Manufacturer of Clove Cigarette

 

 

No. of Employees :

28,500

 

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 :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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

 

 

 

Name of Company

 

P.T. HANJAYA MANDALA SAMPOERNA TBK

 

 

company Address

 

Head Office & Factory

Jalan Rungkut Industry Raya No. 14-18

Surabaya 60293

East Java

Phones          - (031) 8431699 (16 lines)

Fax                - (031) 8430986

Telex             - 33234 SAMPRN IA

P.O. Box       - 27/SBS/60401, 234/SBS/60401

Website         - http://www.sampoerna.co.id

Email             - investor@sampoerna.co.id

 

Factories

a. Jalan Taman Sampurna No. 6

    Surabaya, East Java

b. Jalan Kalirungkut No. 9 - 11

    Surabaya, East Java

c. Jalan Kedung Baruk No. 25

    Surabaya, East Java

d. Jalan Industri No. 2

    Malang, East Java

e. Jalan Letjend. S. Parman No. 44

    Malang, East Java

f.  Jalan Raya Surabaya - Malang Km. 51.4

    Pandaan, Pasuruan

    East Java

 

Representative Office

One Pacific Place, 16th and 20th Floor

Jalan Jend. Sudirman Kav. 52-53

Jakarta 12190, Indonesia

Phones          - (021) 5151234 (hunting)

Fax                - (021) 5152234

 

 

Date of Incorporation

 

a. In 1913 as NV. Handel Maatschapij LIEM SEENG TEE

b. In 1930 as NV. Handel Maatschapij SAMPOERNA

c. In 1959 as P.T. Handel Maatschapij SAMPOERNA

d. 28 November 1988 as P.T. HANJAYA MANDALA SAMPOERNA

e. 19 August 1996 as P.T. HANJAYA MANDALA SAMPOERNA Tbk (P.T. HM SAMPOERNA Tbk)

Legal Form

 

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

 

 

Company Reg. No.

 

The Ministry of Law and Human Rights

  a. No. C-20646.HT.01.04.TH.2004

      Dated 16 August 2004                    

  b. No. AHU-78005.AH.01.02.Tahun 2008

      Dated 24 October 2008                   

  c. No. AHU-0006503.AH.01.09.Tahun 2010

      Dated 26 January 2010

 

 

Company Status

 

Domestic Investment Company (PMDN)

 

 

Permit by the Government Department

 

  a. The Department of Finance

      NPWP No. 01.108.205.4-001.000

 

  b.  The Capital Investment Coordinating Board

      No. 703/I/PMDN/1995

      Dated 14 December 1995

 

  c.  The Capital Market Supervisory Agency

      No. Kep-44/PM/1998

      Dated 14 August 1998

 

  d.  The Department of Industry and Trade

      No. 085/BH.13.01/Sept/2004

      Dated 08 September 2004

 

 

Related/Affiliated Company

 

A Member Company of the PHILIP MORRIS Group

 


CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           - Rp. 630,000,000,000.-

Issued Capital                                 - Rp. 438,300,000,000.-

Paid up Capital                               - Rp. 438,300,000,000.-

 

Latest Shareholders (as of Dec. 31, 2012) :

a. P.T. PHILIP MORRIS INDONESIA        - Rp.  430,317,000,000.- (98.18%)

    Address : One Pacific Place, 16th  and 20th Floor

                    Jl. Jend. Sudirman Kav. 52-53

                    Jakarta 12190 - Indonesia

b. The Publics                                         - Rp.      7,983,000,000.- (  1.82%)

    Address : Jakarta and Surabaya

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Clove Cigarette Manufacturing

 

Production Capacity :

  A. Initial Unit

      a. Hand Clove Cigarettes                - 14.0 billion pcs. p.a.

      b. Machine Clove Cigarettes           -   7.0 billion pcs. p.a.

 

  B. Expansion Unit

      a. Hand Clove Cigarettes                - 32.6 billion pcs. p.a.

      b. Machine Clove Cigarettes           - 21.8 billion pcs. p.a.

 

Total Investment :

  A. Initial Unit

      a. Equity Capital            - Rp. 153.0 billion

      b. Loan Capital              - Rp.   26.6 billion

      c. Total Investment        - Rp. 179.6 billion

 

  B. Expansion Unit

      a. Equity Capital            - Rp. 297.0 billion

      b. Reinvested Profit      - Rp. 399.7 billion

      c. Loan Capital              - Rp. 182.4 billion

      d. Total Investment        - Rp. 879.1 billion

 

Started Operation :

1913 when it was named N.V. Handel Maatschappij LIEM SEENG TEE

 

Brand Name :

JOHNSON, KAFILAH, LONG, JET, WEST, UNION, HERO, NERO, GOLDEN UNION, WINSTON, KENNEDY, GOLD BLEND, DIAMOND BLEND

Technical Assistance :

None

 

Number of Employee :

28,500 persons

 

Marketing Area :

Local      - 95%

Export    -   5%

 

Main Customers :

a. Local Market – PT. Perusahaan Dagang dan Industri PANAMAS, P.T. SUMBER ALFARIA 

    TRIJAYA and P.T. SAMPOERNA TRANSPORT NUSANTARA as local distributor

b. International Market – SAMPOERNA INTERNATIONAL PTE LTD., of Singapore and LIGNUM-2

    INC., of the USA

 

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. GUDANG GARAM Tbk

b. P.T. DJARUM

c. P.T. BAT INDONESIA Tbk

d. P.T. SUMATRA TOBACCO TRADING CO

e. P.T. NOJORONO TOBACCO

f.  Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a. DEUTSCHE Bank AG

    Deutsche Bank Building

    Jl. Imam Bonjol No. 80

    Jakarta - Indonesia

b. P.T. Bank CIMB NIAGA Tbk

    Jl. Jend. Sudirman Kav. 58

    Jakarta - Indonesia

c. P.T. Bank NEGARA INDONESIA Tbk

    Jl. Jend. Sudirman Kav. 1

    Jakarta - Indonesia

d. P.T. Bank CENTRAL ASIA Tbk

    Jl. Jend. Sudirman Kav. 52-53

    Jakarta – Indonesia

 


Auditor :

Tanudiredja, Wibisana & Rekan (a public accountant)

 

Litigation :

No detrimental filling was recorded at the local courts.

 

 

FINANCIAL FIGURE

 

Annual Sales (Income) :

2008 – Rp. 34,680.4 billion

2009 – Rp. 38,972.2 billion

2010 – Rp. 43,381.7 billion

2011 – Rp. 52,856.7 billion

2012 – Rp. 66,626.1 billion

2013 – Rp. 36,199.0 billion (as of June 30, 2013)

 

Net Profit (Loss) :

2008 – Rp. 3,895.3 billion

2009 – Rp. 5,087.3 billion

2010 – Rp. 6,422.7 billion

2011 – Rp. 8,064.4 billion

2012 – Rp. 9,945.3 billion

2013 – Rp. 5,008.7 billion (as of June 30, 2013)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Paul Norman Janelle *)

Directors                                         - a. Mrs. Shea Lih Goh

                                                        b. Mr. Mark Ingo Niehaus

                                                        c. Mr. Wayan Mertasana Tantra

                                                        d. Mr. Yos Adiguna Ginting

                                                        e. Mr. Peter Alfred Kurt Haase

                                                        f.  Mr. Nikolaos Papathanasiou

 

Board of Commissioners :

President Commissioner                  - Mr. John Gledhill *)

Vice President Commissioner          - Mr. Charles Herve Bendotti

Commissioner                                 - a. Mrs. Niken Rachmad

                                                      - b. Mr. Phang Cheow Hock

c. Mr. Goh Kok Ho

 

*) Based on the Extraordinary General Meeting of Shareholders on July 18, 2012, appointed Paul

   Norman Janelle as President Director of the Company, and appointed John Gledhill as President    

   Commissioner of the Company, effectively on August 1, 2012


Signatories :

President Director (Mr. Paul Normal Janelle) or one of the Directors (Mrs. Shea Lih go, Mr. Mark Ingo Niehaus, Mr. Wayan Mertasana Tantra, Mr. YHos Adiguna Ginting, Mr. Peter Alfred Kurt Haase or Mr. Nikolaos Papathanasiou) which must be approved by Board of Commissioners.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

Initially named Handel Maatschapicj LIEMM SEEN TEE, it was established in 1913 by Mr. Liem Seng Tee and his wife Mrs. Tjiang Nio. In 1930 the company renamed to C.V. Handel Maatschapij SAMPOERNA and in 1959 the name of the company was changed to P.T. Handel Maatschapij SAMPOERNA with the authorized capital of Rp. 20,000,000 of which Rp. 10,000,000 was issued and fully paid up. The shareholders of the company are Mr. Aga Sampoerna AKA Liem Swie Ling, the second son of Mr. Liem Seeng Tee (died in 1956) and their brothers Mr. Liem Sien Nio and Mr. Liem Hwee Nio.

 

In November 1988 the company was renamed P.T. HANJAYA MANDALA SAMPOERNA and in July 1990 it became a publicly listed company by releasing its 15.0% shares to public through the Jakarta Stock Exchange (BEJ). In June 1994 the authorized capital was raised to Rp 630,000,000,000 issued and paid up capital to Rp 438,300,000,000.- In August 1996 the name was changed again to P.T. HANJAYA MANDALA SAMPOERNA Tbk. (P.T. HMST).   Since that time, shares of P.T. HMST are controlled by DUBUIS HOLDING Ltd of Mauritius (32.41%), P.T. LANCAR SAMPOERNA BESTARI (5.20%), both are owned by Mr. Putra Sampoerna and his family, NORBAX Inc (6.24%), Mr. Boedi Sampoerna (1.3%)), the commissioner of HMST (0.02%) and the publics (54.83%).

 

In March 2005, some 40% shares of P.T. HMST including shares of the SAMPOERNA family were taken over by PHILIP MORRIS INTERNATIONAL Inc with acquired value of US$ 2 billion. In May 2005, P.T. PMI took over 57% shares of P.T. HMST through tender offer process.  Since that time 97% shares of P.T. HMST were owned by the PMI and the rest of 3% is owned by the publics. PMI is a holding company of the PHILIP MORRIS Group, a large sized company group dealing with MARLBORO non-flavored clove cigarettes.  Whole assets of PMI in P.T. HMST are shifted to P.T. PHILIP MORRIS INDONESIA. As at December 31, 2012 the shareholders of P.T. HMST are P.T. PHILIP MORRIS INDONESIA (98.18%) and the publics (1.82%).

 

The Articles of Association of the Company have been amended several times, lastly by Notarial Deed No. 107 of Aulia Taufani, SH., dated December 15, 2009 in order to comply with Capital Market and Financial Institution Supervisory Agency regulations.  These amendments to the Articles of Association were approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decision Letter No. AHU-0006503.AH.01.09. Year 2010 dated January 26, 2010.

 

P.T. HMST is the second largest producer of clove cigarettes in Indonesia at present. Previously it has merely managed a plant of hand-rolled clove and white cigarettes at Jalan Taman Sampoerna No.6, Surabaya, owned by P.T. Handel Mattschappij SAMPOERNA (the then N.V. Handel Mattschappij Sigarettenfabriek LIEM SEENG TEE), the first white cigarette producer in Indonesia with popular brand name at that time SAMPOERNA STAR, SUMMER PALACE and STATUE OF LIBERTY as known with symbols "123", "720" and "678".  Hand-rolled clove cigarette is marketed under the popular brands DJI SAM SOE and SAMPOERNA.

 

Since July 2000, the company again launched a new product with SAMPOERNA MILLENIUM brand. Since February 2001 the company started to produce and market S.T. DUPONT brand cigarette, a well know cigarette of France. The license agreement with S.T. DUPONT, France is affective for a period of ten years valid form 01 January 2001.

 

Some 95% of the products are marketed locally and the rest is exported to Hong Kong, Malaysia, Japan, and the USA. To support its marketing, P.T. HMST has appointed its sister companies P.T. Perusahaan Dagang dan Industri PANAMAS, P.T. SUMBER ALFARIA TRIJAYA and P.T. SAMPOERNA LOGISTIK NUSANTARA as local distributors and SAMPOERNA INTERNATIONAL Pte. Ltd. of Singapore and also SAMPOERNA JOO LAN Sdn. Bhd., of Malaysia for International market and export.

 

Investment in Shares

 

Other than operating in the clove cigarette manufacturing, P.T. HMST is also as shareholders and controls 100% shares of P.T. Perusahaan Dagang dan Industri PANAMAS, 100% shares of P.T. SAMPOERNA PRINTPACK, 100% shares of P.T. HANDAL LOGISTIK NUSANTARA, 100% shares of P.T. ASIA TEMBAKAU and others.  The table of P.T. HMST’s subsidiary companies shall be as follows:

 

(As of Dec. 31, 2012)

Company & Domicile

Lines of Business

Commercial Operation

Percentage of Ownership

Total Assets

(Rp million)

P.T. Perusahaan Dagang dan Industri PANAMAS, Indonesia

Cigarette Distribution

1989

100.0

114,641

P.T. SAMPOERNA PRINTPACK , Indonesia

Printing and

Packaging Industry

1989

100.0

267,864

P.T. HANDAL LOGISTIK NUSANTARA, Indonesia

Expedition and

Warehousing

1989

100.0

30,566

P.T. ASIA TEMBAKAU, Indonesia

Cigarette Manufacturing and Trading

2002

100.0

878,020

P.T. UNION SAMPOERNA DINAMIKA, Indonesia

Investment Holding

2005

100.0

45,512

P.T. TAMAN DAYU, Indonesia

Property Development

1990

100.0

181,925

P.T. GOLF TAMAN DAYU, Indonesia

Leisure and Golf course services

1996

100.0

62,329

SAMPOERNA JOO LAN Sdn., Bhd., Malaysia

Cigarette Manufacturing and Trading

1998

100.0

9,387

SAMPOERNA INTERNATIONAL Pte. Ltd.,  Singapore

Investment Holding

1995

100.0

248,837

P.T. HARAPAN MAJU SENTOSA

Cigarette Manufacturing and Trading

1989

100.0

36,167

P.T. PERSADA MAKMUR INDONESIA

Cigarette Manufacturing and Trading

2003

100.0

58,489

Source: P.T. HM SAMPOERNA Tbk

 

According to financial report audited by Tanudiredja, Wibisana & Rekan (a member of Global PWC) a public accountant that the total sales turnover of P.T. HMST in 2010 amounted to Rp. 43,381.7 billion with a net profit of Rp. 6,422.7 billion increased to Rp. 52,856.7 billion with a net profit of Rp. 8,064.4 billion in 2011 and rose again to Rp. 66,626.1 billion with a net profit of Rp. 9,945.3 billion in 2012.  As of June 30, 2013, its sales turnover was Rp. 36,199.0 billion with a net profit of Rp. 5,008.7 billion.  Financial statement as of December 31, 2010, 2011, 2012 and as of June 30, 2013 are attached.  So far, we have never heard that P.T. HMST has been black listed by Bank Indonesia (Central Bank) and involved in detrimental cases being settled in the country. Its payment habit is running punctually.

 

Based on the Extraordinary General Meeting of Shareholders on July 18, 2012, it appointed Mr. Paul Norman Janelle as President Director of the Company, replacing Mr. John Gledhill.  Prior to the appointment, Janelle’s previous position was president commissioner, a position that will be held by Gledhill after the decision becomes effective on Aug.1, 2012.   Mr. Janelle graduated with Master of Business Administration and Finance from Webster University, and gained Bachelor of Business Administration, and Bachelor of Science from University of Ottawa.

 

The change in the board of directors and board of commissioners follows the appointment of John Gledhill as the managing director Australia, New Zealand and Pacific Islands for Philip Morris Limited, Australia.  In his daily operation, Mr. Janelle is assisted by six directors namely Mrs. Shea Lih Go, Mr. Mark Ingo Niehaus, Mr. Wayan Mertasana Tantra, Mr. Yos Adiguna ginting, Mr. Peter Alfred Kurt Haase and Mr. Nikolaos Papathanasiou.   The management is quite creative and dynamic, having maintained a wide business relation with private businessmen at home and abroad and with the government sectors as well. We observed that management’s reputation in said business is fairly good.  So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in any business malpractices. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

P.T. HM SAMPOERNA Tbk is sufficiently fairly good for business transaction.  However, in view of the economic condition in the country is still unstable, we recommend to treat prudently in extending any new loan to the company.

 

 


Attachment:

 

 

P.T. HM SAMPOERNA TBK AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF FINANCCIAL

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

 

       (In million Rp)

D e s c r i p t i o n

30 June 2013

31 December

2012

2011

2010

TOTAL ASSETS

 

 

 

 

a. Current Assets

 

 

 

 

     - Cash and cash equivalent

436,963

783,505

2,070,123

3,209,559

     - Trade receivables

 

 

 

 

        * Third parties

1,154,436

983,865

823,248

821,727

        * Related parties

135,727

92,680

68,165

34,723

     - Other receivables

 

 

 

 

        * Third parties

60,565

26,262

50,158

29,243

        * Related parties

265,677

269,947

151,335

114,589

     - Inventories – net

17,845,120

15,669,906

8,913,348

9,802,455

     - Prepaid taxes

680,649

599,090

511,105

435,570

     - Advances for purchase of tobacco

256,818

2,506,777

2,058,317

1,095,858

     - Prepaid expenses and other assets

223,890

196,281

205,661

224,834

    Total Current Assets

21,059,845

21,128,313

14,851,450

15,768,558

 

 

 

 

 

b. Non Current Assets

 

 

 

 

     - Investment in associate

34,614

24,783

22,177

12,161

     - Investment property

281,786

141,005

--

--

     - Fixed assets

4,424,881

4,115,078

3,850,665

4,087,338

     - Land for development

117,250

144,139

173,519

175,265

     - Deferred tax assets

160,242

164,862

94,237

42,537

     - Goodwill

60,423

60,423

60,423

237,320

     - Other non-current assets 

394,295

468,924

277,277

201,944

    Total Non Current Assets

5,473,491

5,119,215

4,478,298

4,756,565

TOTAL ASSETS = TOTAL LIABILITY AND EQUITY

26,533,336

26,247,527

19,329,758

20,525,123

LIABILITIES

 

 

 

 

a. Current Liabilities

 

 

 

 

     - Borrowings

--

2,306,203

--

--

     - Trade and others payables

 

 

 

 

        * Third Parties

1,413,247

1,374,131

1,273,856

583,686

        * Related Parties

1,051,785

1,053,980

664,249

490,831

     - Dividends payable

4,247,127

--

--

3,988,530

     - Taxes payable  

1,357,904

1,368,296

1,471,749

1,073,346

     - Excise tax payable  

6,013,955

5,295,906

4,464,140

3,126,171

     - Accruals and provisions

439,837

443,485

438,276

474,144

     - Pos-employment benefit obligations

41,530

30,388

25,977

--

     - Finance lese liabilities - current

22,599

25,588

30,161

42,234

     Total Current Liabilities

17,178,176

11,897,977

8,368,408

9,778,942

b. Non Current Liabilities

 

 

 

 

     - Post-employment benefit obligations

873,412

854,970

556,869

432,642

     - Deferred tax liabilities

--

5,091

5,549

11,352

- Finance lese liabilities – long term

44,845

56,037

50,043

44,928

- Deferred revenue

112,439

125,032

46,219

41,807

     Total Non Current Liabilities

1,030,696

1,041,130

658,680

530,729

c. Total Liabilities

18,208,872

12,939,107

9,027,088

10,309,671

d. Equity

 

 

 

 

     - Issued and Paid up Capital

438,300

438,300

438,300

438,300

     - Additional Paid-up Capital

88,543

136,937

142,958

42,077

     - Cumulative translation adjustments 

648,100

647,317

616,400

629,769

     - Other reserves

(29,721)

(29,721)

(29,721)

(29,721)

     - Retained earnings

7,179,242

12,115,587

9,134,733

9,134,039

 Total  Equity

8,208,872

13,308,420

10,302,670

10,215,42

INCOME STATEMENT

 

 

 

 

a. Net Sales/Revenues

36,199,035

66,626,123

52,856,708

43,381,658

b. Cost of Goods Sold

(26,784,247)

(48,118,835)

(37,661,205)

(30,725,665)

c. Gross Profit

9,414,788

18,507,288

15,195,503

12,655,993

d. Operational Expenses

(2,192,990)

(4,183,635)

(3,562,619)

(3,145,057)

e. Operational Profit

7,221,798

14,323,653

11,632,884

8,711,134

f.  Other Income (Expenses)

(501,348)

(940,396)

(711,785)

35,174

g. Profit Before Income Tax

6,720,450

13,383,257

10,911,082

8,748,229

h. Income Tax Expense

(1,711,768)

(3,437,691)

(2,846,656)

(2,325,481)

i.  Net Profit

5,008,682

9,945,296

8,064,426

6,422,748

Remarks:  1) 31 December 2010, 2011 and 2012 audited by Tanudiredja, Wibisana & Rekan

                 2) As of June 30, 2013 un-audited

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.48

UK Pound

1

Rs.99.66

Euro

1

Rs.83.50

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.