MIRA INFORM REPORT

 

 

Report No. :

341510

Report Date :

24.09.2015

 

IDENTIFICATION DETAILS

 

Name :

P.T. NESTLE INDONESIA

 

 

Registered Office :

Wisma Nestle Arcadia Office Park, Blok B 5th Floor, Jalan T.B. Simatupang Kav. 88, Jakarta Selatan 12520

 

 

Country :

Indonesia

 

 

Date of Incorporation :

29.12.2000

 

 

Com. Reg. No.:

AHU-AH.01.10-11542

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

·         Instant Noodle Manufacturing

·         Coffee Processing

·         Confectionery Manufacturing

·         Food and Beverage Processing Industry

·         Cans Manufacturing

 

 

No. of Employees :

3,016

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Indonesia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDONESIA - ECONOMIC OVERVIEW

 

Indonesia has seen a slowdown in growth since 2012, mostly due to the end of the commodities export boom. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25% 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, a current account deficit, and unequal resource distribution among regions. President Joko WIDODO - elected in July 2014 - has emphasized maritime and other infrastructure development, and especially increased electric power capacity, since taking office. Fuel subsidies were almost completely removed in early 2015, a move which could help the government increase spending on its development priorities. Indonesia, with the nine other ASEAN members, will continue to move towards participation in the ASEAN Economic Community, though full implementation of economic integration will not be completed by the previously-set deadline of year-end 2015.

 

Source : CIA

 


 

BASIC SEARCH

 

Name of Company :

P.T. NESTLE INDONESIA

 

A d d r e s s :

Head Office

Wisma Nestle Arcadia Office Park, Blok B 5th Floor

Jalan T.B. Simatupang Kav. 88

Jakarta Selatan 12520

Indonesia

Phones             - (62-21) 7883 6000 (Hunting)

Fax                   - (62-21) 7883 6001

Email                - ali.maulahela@id.nestle.com

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

Building Area    - 24 storey

Office Space    - 2,500 sq. meters

Region              - Commercial

Status               - Rent

 

Factories

a. Kejayaan Factory

     Jalan Raya Pasuruan – Malang Km. 9.5

    Desa Tambero Kejayaan

    Pasuruan

    East Java

    Indonesia

    Phones         - (62-343) 421005-07

    Fax               - (62-343) 421424

    Land Area     - 20,000 sq. meters

    Building Area            - 15,500 sq. meters

    Region          - Industrial Zone

    Status           - Owned

 

b. Cikupa Factory

    Jalan Raya Serang Km. 12

    Cikupa, Tangerang

    Banten Province

    Indonesia

    Phones         - (62-21) 596 1253, 596 0457

    Fax               - (62-21) 596 0458

    Land Area     - 18,000 sq. meters

    Building Area            - 12,500 sq. meters

    Region          - Industrial Zone

    Status           - Owned

 

c. Panjang Factory

    Jl. Raya Bakauheni Km. 13

    Serongsom, Bandar Lampung

    Lampung Province

    Indonesia

    Phones         - (62-721) 31253 (Hunting)

    Fax               - (62-721) 31430

    Land Area     - 25,000 sq. meters

    Building Area            - 17,600 sq. meters

    Region          - Industrial Zone

    Status           - Owned

 

d. Karawang Factory (planned)

    Kawasan Industry Surya Cipta

    Karawang, Bekasi

    West Java

    Indonesia

    Phones         - (62-21) none

    Fax               - (62-21) none

    Land Area     - 28 hectares

    Building Area            - 12 hectares

    Region          - Industrial Estate

    Status           - Rent

 

Date of Incorporation :

a. 20 April 1981 as P.T. SUPMI

b. 13 April 1982 as P.T. SUPMI SAKTI

c. 29 December 2000 as P.T. NESTLE INDONESIA

 

Legal Form :

P.T. (Perseroan Terbatas) or Limited Liability Company

 

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. C-14524.HT.01.04.TH.2003

    Dated 25 June 2003

b. No. AHU-84643.AH.01.02.Tahun 2008

    Dated 12 November 2008

c. No. AHU-AH.01.10-11014

    Dated 22 June 2009

d. No. AHU-36892.AH.01.02.Tahun 2011

    Dated 22 July 2011

e. No. AHU-AH.01.10-33169

    Dated 14 October 2011

f. No. AHU-AH.01.10-21179

    Dated 12 June 2012

g. No. AHU-AH.01.10-11542

    Dated 18 March 2014

 

Company Status :

Foreign Investment (PMA) Company

 

Permits by the Government Department :

a. The Department of Finance

    NPWP No. 01.308.948.7-092.000

 

b. The Capital Investment Coordinating Board

    - No. 05/V/PMA/1995

      Dated 21 February 1995

    - No. 110/II/PMA/1996

      Dated 17 July 1996

    - No. 1799/III/PMA/2000

      Dated 8 December 2000

    - No. 1651/III/PMA/2001

      Dated 7 December 2001

    - No. 222/II/PMA/2002

      Dated 17 October 2002

    - No. 340/III/PMA/2003

      Dated 3 April 2003

    - No. 08/II/PMA/2004

      Dated 29 January 2004

 

Affiliated/Associated Companies : 

a. NESTLE S.A., Switzerland (Food & Beverages Processing Industry and Investment Holding)

b. P.T. SUMBER SELATAN NUSA (Investment Holding)

c. P.T. Perusahaan Dagang MUARA (Investment Holding)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                           - Rp. 152,753,440,000.-

Issued Capital                                 - Rp. 152,753,440,000.-

Paid up Capital                               - Rp. 152,753,440,000.-

 

Shareholders/Owners :

a. NESTLE S.A.                                       - 90.24%

    Address : CH-1800 Vevey

                    Swiss

                    Switzerland         

b. P.T. SUMBER SELATAN NUSA            -   7.31%

    Address : Jl. Tanah Abang III No. 20

                    Jakarta Pusat

                    Indonesia                   

c. P.T. Perusahaan Dagang MUARA        -   2.45%

    Address : Jl. Jababeka XI Blok K No. 10-G

                    Bekasi, West Java

                    Indonesia

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a. Instant Noodle Manufacturing

b. Coffee Processing

c. Confectionery Manufacturing

d. Food and Beverage Processing Industry

e. Cans Manufacturing

 

Production Capacity :

a. Instant Noodles                           -   84,762 tons p.a.

b. Culinary                                      -     1,000 tons p.a.

c. Spices (co-packing)                     -     4,000 tons p.a.

d. Sweets                                       -     9,190 tons p.a.

e. Sweetened Condensed Milks        - 5 million cases p.a.

f.  Sterilized Milks                            -     5,600 tons p.a.

g. Chocolate/Malt Powder Milks/

    Milks Soya Powders                    - 120,570 tons p.a.

h. Cereals                                       -     4,400 tons p.a.

i.  Seasoning, Bouillon Cubes &

    other Culinary Preparations          -     2,500 tons p.a.

j.  UHS Milks                                   -   32,000 tons p.a.

k. Instant Tea Mix Powders              -     3,000 tons p.a.

l.  Instant Coffee/Coffee Mix            -   21,074 tons p.a.

m. Non Dairy-Creamers                    -     2,500 tons p.a.

n. Cans                                           - 400 million cans p.a.

 

Total Investment :                         

a. Equity Capital                              - Rp.   60.0 million

b. Loan Capital                                - Rp. 849.6 billion

c. Total Investment                          - Rp. 909.6 million

 

Started Operation :

1982

 

Brand Name :

Nestle, Dancow, Milo, Cerelac, Maggie, Kit Kat, Smarties.

 

Technical Assistance :

NESTLE S.A. of Switzerland

 

Number of Employee :

3,016 persons

 

Marketing Area :

Domestic (Local)  - 80%

Export                - 20%

 

 

 

Main Customers :

a. Distributors

b. Hypermarket, Supermarket, Mini Markets and others

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. INDOFOOD SUKSES MAKMUR Tbk

b. P.T. SIANTAR TOP Tbk

c. P.T. ULTRA PRIMA ABADI

d. P.T. SUNTORY FOOD

e. P.T. TIGAPILAR SEJAHTERA FOOD Tbk

f.  Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank MANDIRI Tbk

    Plaza Mandiri

    Jalan Imam Bonjol No. 61

    Jakarta Pusat

    Indonesia

b. P.T. Bank PERMATA Tbk

    Permata Plaza

    Jalan Hayam Wuruk No. 84-85

    Jakarta Pusat

    Indonesia

c. P.T. Bank CIMB NIAGA Tbk

    CIMB Niaga Plaza

    Jalan M.H. Thamrin No. 55

    Jakarta Pusat

    Indonesia

d. P.T. Bank DANAMON INDONESIA Tbk

    Danamon Aetna Building

    Jalan Jend. Sudirman 45

    Jakarta Pusat

    Indonesia

 

Auditor :

Internal Auditor

 

Litigation :

No litigation record in our database

FINANCIAL FIGURE

 

Annual Sales (estimated) :

2011 – Rp.   9,210.0 billion

2012 – Rp. 10,220.0 billion

2013 – Rp. 11,090.0 billion

2014 – Rp. 12,066.0 billion

2015 – Rp.   6,560.0 billion (January – June)

 

Net Profit (estimated) :

2011 – Rp. 460.0 billion

2012 – Rp. 508.0 billion

2013 – Rp. 550.0 billion

2014 – Rp. 590.0 billion

2015 – Rp. 320.0 billion (January – June)

 

Total Assets (estimated) :

2011 – Rp. 1,230.0 billion

2012 – Rp. 1,280.0 billion

2013 – Rp. 1,430.0 billion

2014 – Rp. 1,520.0 billion

2015 – Rp. 1,580.0 billion (January – June)

 

Payment Manner :

Almost Promptly

 

Financial Comments :

Strong and sound

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                           - Mr. Muhammad Arshad Chaudhry

Directors                                         - a. Mr. Riauadi Wisman Djaja

                                                        b. Mr. Joselito Junior Aguiling Avancena

                                                        c. Mr. Thomas Keller

                                                        d. Mr. Gideon Stefanus Du Plessis

                                                        e. Mr. Benyamin Wijaya

                                                        f.  Mrs. Debora Rukmawati Tjandrakusuma

                                                         g. Mr. Vaughan Barton Wappet

                                                        h. Mr. Welih Sutidjan

 

Board of Commissioner :              

President Commissioner                  - Mr. Doreswamy Nandkishore

Commissioners                               -    a. Mr. Jean Daniel Luthi

                                                           c. Mr. Frederik Bernard George Tumbuan

                                                           d. Mr. Ramos Sihombing

                                                           e. Mr. James Daniel Tabalujan

                                                           f.  Mr. Pierre Francois Streit

                                                           g. Mr. Antonio Helio Waszyk

Signatories :

President Director (Mr. Muhammad Arshad Chaudhry) or one of the Directors (Mr. Riauadi Wisman Djaja, Mr. Joselito Junior Aguiling Avancena, Mr. Thomas Keller, Mr. Gideon Stefanus Du Plessis, Mr. Banyamin Wijaya and Mrs. Debora Rukmawati Tjandrakusuma) which must be approved by President Commissioner (Mr. Doreswamy Nandkishore)  and  one of the commissioners.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

P.T. NESTLE INDONESIA was originally named P.T. SUPMI it was established in April 1981 with an authorized capital of Rp. 250,000,000 issued capital of Rp. 50,000,000 wholly paid-up. Founders and original shareholders are Mr. Kakan Sukandinata, Mr. Budi Sintoro, Mr. Nurdin Hasyim, Mr. Samsi Jusuf and Mr. Bit Soetoyo. The company notary deed has been converted for a couple of times.  In April 1982, the company was renamed to P.T. SUPMI SAKTI. In 1995, NESTLE S.A. of Switzerland took over the company's 80% shares and its status changed into a Foreign Investment Company. In September 1999, the authorized capital was increased to Rp. 60,000,000,000 wholly issued and paid-up and concurrently its shares entirely were takenover by NESTLE S.A., and SOPHORA S.A., of Switzerland. In December 2000, P.T. NESTLE INDONESIA and P.T. NESTLE CONFECTIONERY INDONESIA merged into P.T. SUPMI SAKTI and concurrently renamed to P.T. NESTLE INDONESIA (P.T. NI) and the company has automatically dissolved by Law.

 

Since September 2001 P.T. NESTLE BEVERAGES INDONESIA and P.T. NESTLE DISTRIBUTION INDONESIA had been merged into P.T. NESTLE INDONESIA and since then all assets and activities of both companies had been taken over by P.T. NESTLE INDONESIA. The merger is effective as from 31 December 2001 and hence both merged companies were dissolved by law and since then the whole shares had been controlled by NESTLE S.A, of Switzerland (90.24%) and the rest is owned by P.T. SUMBER SELATAN NUSA (7.31%) and P.T. Perusahaan Dagang MUARA (2.45%), both are national private companies.

 

Based on Notarial Deed of Mochamad Nova Faisal, SH., No. 06 dated October 10, 2011, the authorized capital was raised to Rp. 152,753,440,000.- entirely was issued and fully paid up.  Since that time, the shareholders of the company are NESTLES S.A., of Switzerland (90.24%), P.T. SUMBER SLATAN NUSA (7.31%) and P.T. Perusahaan Dagang MUARA (2.45%), both of Indonesia.  The amendment to Deed was approved by the Minister of Law and Human Rights through its Decree No. AHU-AH.-01.10-33169 dated October 14, 2011.  Then, based on Notarial Deed of Misahardi Wilamarta, SH., No. 53 dated April 19, 2012 the company board of commissioner had been changed, Mr. Reinhold Jakobi pulled out and replaced by Mr. Low Kim Fui.  The amendment to Deed was approved by the Minister of Law and Human Rights in its decision letter No. AHU-AH.01.10-21179 dated June 12, 2012.

The most recently in March 2014 by notarial Deed of Mochamad Nova Faisal, SH., a notary in Jakarta the company board of director and board of commissioner had been changed again.  The amendment to Deed was approved by the Minister of Law and Human Rights of the Republic of Indonesia through Decree No. AHU-AH.01.10-11542 dated March 18, 2014.  Since then, no changes have been effected in term of its shareholding composition and capital structure to date.

 

P.T. NI started with operation in 1982 in the frame work of Foreign Investment (PMA) facility engaged in the field of instant noodle manufacturing whose plant located at Jalan Raya Serang Km. 17, Desa Telaga, Cikupa, Tangerang (Banten Province).   In December  2000 after the merger with P.T. NESTLE INDONESIA operating as from 1972 in food and beverages processing industry and P.T. NESTLE CONFECTIONERY operating as from 1983 dealing with confectionery industry, P.T. NI automatically took over the   whole assets and operation of  both of P.T. NESTLE INDONESIA's plants located respectively at Jalan Raya Waru No. 25, Sidoarjo and at Jalan Raya Pasuruan-Malang Km. 9.5 (both in East Java) and P.T. NESTLE CONFECTIONERY INDONESIA located at Jalan Raya Serang Km. 12, Cikupa Tangerang  (Banten Province).

 

Merger of P.T. NESTLE BEVERAGES INDONESIA into P.T. NI had been made in December 2001, and since then P.T. NI manages the plant of P.T. NESTLE BEVERAGES INDONESIA located at Jalan Raya Bakaheuni Km.12, Serongsom, Panjang, Bandar Lampung, which had been operating since 1980 in coffee processing industry. Since June 2000 the activities of P.T. NI's plant located at Jalan Waru No.25, had been relocated gradually to its plant at Jalan Raya Pasuruan-Malang, Km. 9.5, Tambero, Kejayan, Pasuruan, East Java, and it completed in June 2002.

 

All of the three plants operated by P.T. NI to date produce food stuff including instant noodles, sweets, sweetened condensed milks, sterilized milks, chocolates, malt powders, cereals, seasonings,   instant coffees, instant tea and culinary preparations. For further particular details about P.T. NI's type of products are as shown on profile of this report. Most of the basic materials are still imported from Australia, Germany, the People's Republic of China, Canada and other countries.  P.T. NI's products are distributed under several brands including Maggie, Maggie Mie, Fox's, Polo, Kit Kat, Smarties, Omega, Nestle, Dancow, Carnation, Cap Nona, Nestum, Bonus, Cerelac, Caresol, Nan, Neslac Bear Brand, Chief, Coffee Mate, Nescafe and others.  At present, around 80% of its products are marketed domestically while the rest 20% is exported to the South East Asian Countries.  We observed that P.T. NI is classifiable as a major company in Indonesia which is now controlling 42% of full cream milk powder market shares and 18% of sweetened milk market shares in Indonesia.

 

In mid of 2011, P.T. NI built a new factory at Industrial Estate Surya Cipta, Karachi (West Java) with an investment of US$.200 million and was planned to be fully operational in early 2013. According to the plan of the fourth factory of P.T. NI will produce chocolate drink "Milo", baby food "Cerelac”, and formula powdered milk "Dancow" with a production capacity of 65.000 tons per year. Mr. Muhammad Arshad Chaudhry, president director of P.T. NI said the new factory would need about 10,000 tons of cocoa powder per year and most of cocoa powder need was used for producing chocolate beverage brand "Milo" which up to now still supplied from Malaysia. Mr. Chaudhry added that the decision to build the production center was based on increased consumption of Nestle products in the country in line with rapid national economic growth.

 

But, on October 2011, P.T. NI announced on Monday that the company had no plans to invest US$.200 million in cocoa plantations in Indonesia.  The statement was made following a news report published in sourced from Antara news agency on Friday about the firm’s investment plans, quoting Indonesian Cocoa Association (Askindo) chairman Zulhefi Sikumbang. “PT Nestlé Indonesia does not have any plan to invest in a cocoa plantation, as plantation is not our core business. Nestlé does not have any plans to relocate any factory from Malaysia,” Nestle Indonesia public relation head, Brata T. Hardjosubroto said in a statement made available to the Jakarta Post.

 

However, on July 2012, Nestlé S.A., the world’s largest food and beverage company, will begin production at its fourth plant in Karawang, West Java, in the first quarter of next year as construction remains on schedule. The US$.200 million plant, which is located on a 28.8-hectare plot in Surya Cipta industrial estate, will initially begin making Cerelac infant cereals in March next year, Nestlé Indonesia president director Arshad Chaudhry said.  The plant will then begin producing Milo chocolate malt drinks in August next year, and in April 2014, Dancow milk powder will also be produced at the Karawang plant, he added.  “The factory will be completed by 2014, which is in line with the schedule,” he said on the sidelines of a visit to its factory in Kejayan, Pasuruan, East Java. The output of the plant, which the firm earlier said would have a total production capacity of 65,000 tons, would be mainly allocated for the domestic market where demand for various dairy products grew by up to 12 percent per year, Chaudhry further said.

 

Cutting down imported raw materials

 

Indonesia’s dairy industry is facing the problem of limited milk supply from local breeders. The increasing price of animal feed and beef over the last couple of years are among the factors that have caused the fresh milk supply challenge. The lucrative price of cow meat can increase the probability of farmers selling their cows rather than retaining them as dairy cows.

 

The limited fresh milk supply has forced companies to import 75 percent of milk requirements from the US, Australia, New Zealand and European countries to be able to secure production. To reduce this dependency on imported raw materials, Nestlé has been working to find alternatives for cattle feeding. Within the Partnership for Indonesia’s Sustainable Agriculture (PISAgro) Dairy Working Group, the company—in a public private partnership—is working on the improvement of cattle feeding and providing information to dairy farmers on the benefits of corn silage as an alternative supply for animal feed to increase fresh milk production. Corn silage is an excellent animal feed because it contains a lot of protein, energy and is easily digested. Since it was first launched in 2012, the project has improved animal health, as well as productivity, by an average of 25 percent.

 

Until this time P.T. NI has not been registered with Indonesian Stock Exchange, so that they shall not obliged to announce their financial statement. Therefore, the company has no obligation to publish financial statement publicly. We have checked to Department of Trade and Industry and found that no financial statement has been reported.  We observed that total sales turnover of the company in 2012 amounted to Rp. 10,220.0 billion increased to Rp. 11,090.0 billion in 2013 and rose again to Rp. 12,066 billion in 2014.   The operation in 2014 yielded an estimated net profit of Rp. 590.0 billion and the company has an estimated total asset of at least Rp. 1,580.0 billion. Its sales turnover projected to go on rising by at least 6% in 2015. We observe that P.T. NI is supported by foreign partner of Switzerland with has financially strong and sound behind it.  So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia).

 

a. Criminal Check

           

Based information from Jakarta District Police P.T. NESTLE INDONESIA has never involved in criminal report. Therefore there is no criminal report that registered on the name of P.T. NESTLE INDONESIA.

 

b. Bankruptcy Check

 

We have observed to the Commercial Court in Indonesia, there is no bankruptcy report that registered on the name of P.T. NESTLE INDONESIA. No found nationwide for the previous several years.

 

c. Past and Current Litigations

 

We have observed to the Court in Indonesia, there is no litigation report that registered on the name of the Subject. P.T. NESTLE INDONESIA is not engaged in any material litigation, claims and/or arbitration, either as plaintiff or defendant and has no knowledge of any proceedings, pending or threatened, or of any facts likely to give rise to any proceedings which might materially and adversely affect the financial position of business of companies.

 

No detrimental were found with the applicant involved during the investigation. Based on some information from some reliable sources, no detrimental records were found with the applicant involved during the investigation.  The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia.

 

Since October 2011, P.T. NESTLE INDONESIA’s management is led by Mr. Muhammad Arshad Chaudhry (51), a professional manager of Pakistan with has experienced for more than 17 years in the field instant noodle manufacturing, food and beverages manufacturing and trade.  In daily activities, he is assisted by six directors namely Mr. Riauadi Wisman Djaja (62), Mr. Joselito Junior Aguiling Avancena (42), Mr. Thomas Keller (47), Mr. Gideon Stefanus Du Plessis (55), Mr. Benyamin Wijaya (51), Mrs. Debora Rukmawati Tjandrakusuma (56), Mr. Vaughan Barton Wappet (49) and Mr. Welih Sutidjan (47). We observed that management’s reputation in said business is sufficiently fairly good. The management is well experienced and handles by professional managers both of the local and foreign countries in the above business. They have wide relation with home and overseas private businessmen as well as with government sectors. So far, we did not hear that the company’s management involved in business malpractices 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. NESTLE INDONESIA is sufficiently fairly good for business transaction.  However, in view of the economic condition in the country is still unstable and slowdown, we recommend to treat prudently in extending any new loan to the company.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.97

UK Pound

1

Rs.101.19

Euro

1

Rs.73.37

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TPT

 

               

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.