MIRA INFORM REPORT

 

 

Report Date :

17.08.2012

 

IDENTIFICATION DETAILS

 

Name :

RICHBOND

 

 

Registered Office :

265 Boulevard Moulay Ismail,  Roches Noires, Casablanca

 

 

Country :

Morocco

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

01.04.1974

 

 

Com. Reg. No.:

32097

 

 

Legal Form :

Societe Anonyme

 

 

Line of Business :

Manufacturer of mattresses

 

 

No. of Employees :

1800

 

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, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Morocco

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

Company name

 

RICHBOND

 

 

Rating Briefing

 

Payment Record:                                   REGULAR

 

 

Registration Briefing

 

Registration Number:                             32097

Registration Date:                                  01/04/1974

Legal Form:                                           SOCIETE ANONYME

Latest Financials:                                  December 31, 2011

 

Financial Briefing

 

Nominal Capital:                                    230,000,000 Moroccan Dirham

Issued Capital:                                       N/A

Turnover:                                               818,380,861 Moroccan Dirham

Net Loss:                                                899,498

Net Worth:                                              324,164,882 Moroccan Dirham

 

 

Company Details

 

Company Name:                                          RICHBOND

Headquarter Address:                                   265 Boulevard Moulay Ismail,

                                                                  Roches Noires,

                                                                  Casablanca,

                                                                  Morocco

Telephone:                                                  +212522 244699

                                                                  +212522 352917

                                                                  +212522 401104

                                                                  +212522 401195

                                                                  +212522 754888

                                                                  +212522 763838

 

Fax:                                                            +212522 240093

                                                                  +212522 244679

                                                                  +212522 343536

                                                                  +212522 754800

E‑Mail:                                                        atlemcani@richbond.ma

Web Site:                                                    www.richbond.ma

 

Company was originally started as a SOCIETE ANONYME on 1966

 

 

Registration & Legal Details

 

Current Legal Form:                                   SOCIETE ANONYME

Registration Address:                                 265 Boulevard Moulay Ismail,

                                                                Casablanca

Registration Number:                                  32097

Registration Date:                                      01/04/1974

Year/Date Company Established:                1966

Registration Town:                                     Casablanca

Tax Registration Number:                           01640312

 

Capital

 

Currency:                                                                 Moroccan Dirham

Authorized Capital:                                                           230,000,000

Paid Up Capital:                                                               230,000,000

 

 

Authorized Capital Breakdown

 

Number of Shares: 2,300,000                      Type of Shares:  None Selected

Issued Shares: 2,300,000                           Value per share: MDH 100.00              

                                                                Value of this type: 230,000,000.00

 

 

Shareholders / Owners

 

Shareholders:

 

Name/Other Information                                                    Shares Held                              % of

                                                                                                                                      Voting/Non‑Voting

                                                                                                                                      capital

Mr Karim Tazi,                                                               538,231                                     23.40% (VOTING)

Boulevard de Lybie,

Casablanca,

Morocco

Mr Nacer Tazi,                                                               538,231                                     23.40% (VOTING)

Boulevard de Lybie,

Casablanca,

Morocco

Ms Hidaya Tazi,                                                             538,231                                     23.40% (VOTING)

2 Rue Socrate,

Casablanca,

Morocco

Ms Touria Tazi,                                                              538,231                                     23.40% (VOTING)

2 Rue Socrate,

Casablanca,

Morocco

Ste Doumaliance,                                                          137,000                                     5.96% (VOTING)

265 Boulevard Moulay Ismail,

Casablanca,

Morocco

Mr Abdelaziz Tazi,                                                         7,076                                        0.30% (VOTING)

2 Rue Socrate,

Casablanca,

Morocco

SIMEC SA,                                                                     3,000                                        0.14% (VOTING)

265 Boulevard Moulay Ismail,

Casablanca,

Morocco

 

 

 

Principals

 

Name:                                                       Mr Abdelaziz Tazi

Position within the company:                      President

Date of Birth:                                             12/11/1932

Country of Birth:                                         Morocco

Nationality:                                                Moroccan

Can fluently speak:                                    Arabic & French

 

Name:                                                       Mr Nacer Tazi

Position within the company:                      Administrator

Date of Birth:                                             25/09/1962

Country of Birth:                                         Morocco

Nationality:                                                Moroccan

Can fluently speak:                                    Arabic, French & English

 

Name:                                                       Mr Karim Tazi

Position within the company:                      General Director

Date of Birth:                                             09/06/1960

Country of Birth:                                         Morocco

Nationality:                                                Moroccan

Can fluently speak:                                    Arabic, French & English

 

Name:                                                       Mr Abdelmajid Tlemçani

Position within the company:                      Chief Accountant

Country of Birth:                                         Morocco

Nationality:                                                Moroccan

Can fluently speak:                                    Arabic & French

 

Name:                                                       Mr Marty Fernando

Position within the company:                      Financial Director

Additional Information:                                Martinican

Date of Birth:                                             1966

Can fluently speak:                                    French & English

 

 

Company Activities

 

NACE Codes:          3103           Manufacture of mattresses

                              3109           Manufacture of other furniture

 

RICHBOND is a Moroccan based company specialized in manufacture of polyurethane foam, mattresses, bedding, lounges, upholstery and plastic products.

 

Subject imports raw materials mainly chemicals from Europe: 60%, Asia : 35% and Tunisia : 5%.

 

Subject distributes 95% of manufactured products on a wholesale basis to the local market and exports 5% to France, Belgium and UAE.

 

Local Reporters consider the investigated company to be LARGE in their field of concern.

 

 

Operations

 

Employees                                               Company Employs: 1800

HQ Premises                                            Operates from:     Owned Offices, Factory, Warehouse

                                                                Premises Size:    60000 square meters

                                                                                          90000 square meters site

                                                                Location:             Industrial Area

 

Other Branches

 

                                                               Subject has numerous other branches nationally.

                                                               Number of Branches:                  18

                                                               Additional Information:                 5 Plants, 5 Warehouses, 8

                                                                                                                Showrooms

 


Imports

Imports Raw Materials, Imports Finished Goods

                                                              Imports From:                            European Community, South East

                                                                                                              Asia, Tunisia

                                                              Importing Terms:                        30‑60‑90 days credit, bank transfer

 

Brands:                                                     RICHBOND ‑ Home furnishing products

                                                                MESIDOR ‑ Mattresses

                                                                ATLAS PLASTIC ‑ Plastic products

 

Exports

 

                                                              Export % and type of product:     5%

                                                              Exports To:                                France, Belgium, United Arab

                                                                                                               Emirates

                                                              Exporting Terms:                        90 days credit, bank transfer

 

Trading & Selling

 

                                                               Territory:                                   95% Nationally, 5% International

                                                              Type of Customer:                     Wholesalers & Supermarkets

                                                              Number of accounts:                  1,000

 

Vehicles:                                                  Total number of vehicles: 120

 

 

Related Companies

 

Subsidiaries

                                  RICHBOND D'ARC

                                  Argenteuil,                                       Owned 100% by subject

                                  Paris,

                                  France

                                 Operates as: Marketing of home furnishing products

 

                                  SIMEC

                                  265, Boulevard Moulay Ismaïl ‑          Owned 72% by subject

                                  Roches Noires,

                                  Casablanca,

                                  Morocco

                                                                                        Start date: 1968

                                 Operates as: Manufacture of Plastics

 




Affiliates

 

Bankers

BMCE Bank,

        Branch: Head office

        140 Avenue Hassan II,

        Casablanca,

        Morocco

 

        Société Générale,

        Branch: Head office

        55 Boulevard Abdelmoumen,

        Casablanca,

        Morocco

 

        Attijariwafa Bank,

        Branch: Hassan II

        163 Avenue Hassan II,

        Casablanca,

        Morocco

 

        Banque Marocaine pour le Commerce et l'Industrie,

        Branch: Hassan II

        Avenue Hassan II Angle Rue Allal Al Fassi,

        Casablanca,

        Morocco

 

 

Financial Information

 

Source:                                                     Mr. Abdelmajid Tlemçani Chief Accountant

Figures are:                                               Official Figures

Currency:                                                  Moroccan Dirham

 

Months   Sales Figures                             Sales                                   Gross Profit/Loss            Net

                                                                                                                                                  Profit/Loss

               12                31/12/2011              818,380,861                         6,076,190                        (899,498)

               12                31/12/2010              703,961,205                         18,240,523                      12,512,411

               12                31/12/2009              678,503,820                         15,608,594                      10,683,786

               12                31/12/2008              713,431,728                         10,805,368                      6,971,397

               12                31/12/2007              675,328,477                         9,782,064                        5,963,294

               12                31/12/2006              590,555,754                         7,487,172                        4,438,454

               12                31/12/2005              503,406,528                         11,396,649                      8,535,805

               12                31/12/2004              483,826,266                         9,741,427                        6,619,179

               12                31/12/2003              454,640,771                         6,619,179                        5,126,425

 

 

Balance Sheet & Profit & Loss

 

BALANCE SHEET

                                                                   As at: 31‑Dec‑2011                   As at: 31‑Dec‑2010              As at:                                                                                                         

                                                                                                                                                        31‑Dec‑2009

  Fixed Assets

  Land & Buildings                                                 51,737,181                               55,593,967                               59,553,682

  Plant & Machinery                                               77,448,886                               75,633,251                               78,455,564

  Furniture & Equipment                                         44,728,747                               41,974,631                               37,516,537

  Motor Vehicles                                                      7,449,153                                 6,194,981                                 6,548,926

  Misc. Fixed Assets                                               5,012,166                                 2,150,000

  Total Fixed Assets                                           186,376,133                              181,546,830                              182,074,709

 

  Financial Assets

  Shares in Related Companies                              31,311,401                               31,311,401                               31,311,401

  Loans to related companies

  Investments

  Deposits

  Misc. Financial Assets                                          2,197,509                                 2,144,509                                 2,116,829

  Total Financial Assets                                       33,508,910                               33,455,910                               33,428,230

 

  Intangibles

  Goodwill                                                               3,443,000                                 3,443,000                                 3,443,000

  Organisational Expenses                                       3,437,284                                 3,996,021                                 7,462,804

  Patents                                                                1,472,450                                 1,100,769                                 1,487,064

  Misc. Intangible Assets                                              70,000                                      70,000                                      70,000

  Total Intangible Assets                                       8,422,734                                 8,609,790                               12,462,868

 

  Current Assets

  Stock                                                               166,177,151                              160,242,150                              158,376,799

  Stock & Work in Progress

  Trade Debtors & receivables                               203,760,325                              186,969,125                              201,372,329

  Provision for bad debs

  Other receivables                                                  2,370,979                                      38,507                                      88,054

  Due from related companies

  Owed by shareholders

  Prepaid expenses                                                 9,209,330                                 4,165,750                                 3,718,358

  Cash                                                                      811,335                                    851,950                                    651,883

  Tax recoverable                                                   30,069,460                               27,203,695                               22,015,743

  Marketable Securities

  Misc. Current Assets                                            1,216,989                                    922,084                                    882,406

  Total Current Assets                                        413,615,569                              380,393,261                              387,105,572

  Total Assets                                                     641,923,346                              604,005,791                              615,071,379

  Owner's Equity & Liabilities

  Issued and paid up capital                                  230,000,000                              230,000,000                              230,000,000

  Share premium account

  Retained earnings                                               90,073,233                               78,186,443                               68,036,846

  Net profit/Loss for the year                                       ‑899,498                               12,512,411                               10,683,786

  Revaluation reserves

  Legal Reserves                                                     4,770,697                                 4,145,076                                 3,610,887

  Other reserves                                                         220,450                                    220,450                                    220,450

  Net Worth                                                        324,164,882                              325,064,380                              312,551,969

 

 

  Deffered Taxation

  Provisions/allowances                                                                                                                                             214,055

  Mortgages/Loans                                                49,285,714                               67,142,857                               85,200,000

  Hire purchase

  Due to group of companies

  Minority interest

  Misc. deferred liabilities

  Total Long Term Liabilities                               49,285,714                               67,142,857                               85,414,055

 

  Current Liabilities

  Creditors                                                           124,100,230                              119,392,881                              121,608,339

  Other creditors                                                      1,558,404                                 1,198,484                                 5,930,121

  Accruals                                                              2,438,533                                 2,506,780                                 2,504,308

  Bank overdrafts/Loans                                         55,840,333                               40,279,777                               27,106,155

  Misc. Loans

  Directors accounts

  Owing to shareholders                                                    562                                          562                                 5,310,562

  Owing to related companies

  Proposed dividend

  Long Term‑due 1 year

  Hire Purchase‑under 1 year

  Taxation                                                             47,912,979                               39,598,706                               43,445,279

  Advance receipts                                                 16,874,348                                 5,330,119                                 7,952,202

  Misc. Current Liabilities                                       19,747,361                                 3,491,245                                 3,248,389

  Total Current Liabilities                                  268,472,750                              211,798,554                              217,105,355

  Owner's Equity & Liabilities                            641,923,346                              604,005,791                              615,071,379

 


PROFIT & LOSS

 

                                                                        Figures are:                   Figures are:                               Figures are

                                                                        Fiscal Year                    Interim Year                               Fiscal Year

 

                                                        01/01/2011 to 31/12/2011       01/01/2010 to 31/12/2010              01/01/2009 to

                                                                                                                                                        31/12/2009

  Total Income/Turnover                                        818,380,861                              703,961,205                              678,503,820

  Cost of sales                                                      31,304,625                               19,202,703                               21,784,912

 

  Gross Profit/(Loss)                                            787,076,236                              684,758,502                              656,718,908

 

  Admin/selling expenses                                     508,818,326                              423,659,185                              395,539,975

  Services                                                             66,560,569                               58,187,833                               58,246,681

  Salaries                                                            139,784,157                              127,407,837                              120,482,076

  Auditors Fee                                                         2,321,366                                 1,919,255                                 2,434,428

  Stock Depreciation                                              13,298,067                               16,847,513                               15,944,688

  Depreciation                                                       34,339,865                               34,055,709                               37,169,773

  Misc. Operating Expenses                                   12,303,283                                    136,101                                    153,592

  Misc. Operating Income                                       20,337,444                                 1,544,627                                   ‑935,982

  Net Operating Profit/(Loss)                                29,988,047                               24,089,696                               25,811,713

 

  Interest Receivable/Finance Income

  Group related income

  Misc. Financial Income                                          1,801,468                                 3,259,468                                 5,264,420

  Total Financial Income                                       1,801,468                                 3,259,468                                 5,264,420

 

  Interest Payable/Finance costs                              6,384,356                                 5,335,137                                 9,441,340

  Misc. financial expenses                                      19,328,969                                 3,773,504                                 6,026,199

  Total Financial Expenses                                  25,713,325                                 9,108,641                               15,467,539

 

  Profit/(Loss) before taxes                                    6,076,190                               18,240,523                               15,608,594

 

  Income Tax                                                          6,975,688                                 5,728,112                                 4,924,808

  Other Tax

  Profit/(Loss) after taxes                                         ‑899,498                               12,512,411                               10,683,786

 

  Extraordinary items

  Exceptional items

  Misc. Items

 

  Net Profit/(Loss)                                                    ‑899,498                               12,512,411                               10,683,786

 

 

  Previous years retained earnings

  Current years net income                                                                                    12,512,411                               10,683,786

  Misc. additions in current year

  Current years net loss                                             ‑899,498

  Dividends in current year

  Withdrawals in current year

  Misc. deductions in current year

 

  Retained earnings at end of                                 ‑899,498                               12,512,411                               10,683,786

  financial period

 

  Average employees

 

  Directors fee

  Earnings per share

  Earnings per share‑previous year

 

 

Auditors Comments

 

Date accounts obtained:                          09/08/2012

Accounts obtained from:                          Subject's accountant

 

Auditors Opinion:                                     The audited financial statement gives a true and fair view of the state of

                                                                affairs of the subject

                                                               

 Financial Statements have been prepared on an on‑going basis.

                                                                Assuming support of: shareholders

 

 

FINANCIAL RATIOS / COMPARATIVE DATA

 

                                      Actual Company      Industrial Averages     Actual Company      Industrial Averages

                                        Results (2011)                   (2011)                   Results (2010)                   (2010)

  Liquidity Ratios

  Current Ratio                                      1.54                            1.92                           1.80                            1.60

  Acid Test Ratio                                   0.92                            1.17                           1.04                            1.05

  Accounts                                            0.15                            0.35                           0.17                            0.33

  Payable/Sales Ratio

  Current Liabilities/Net                          0.83                            0.10                           0.65                            1.56

  Worth

  Total Liabilities/Net                              0.98                            0.34                           0.86                            1.44

  Worth

  Fixed Assets/Net                              57.49                          73.37                          55.85                          45.57

  Worth (%)

 

  Profitability Ratios

  Gross Profit Ratio (%)                        96.17                          97.21                          97.27                          95.27

  Return on Capital                                1.63                          53.03                           4.65                            3.84

  Employed (ROCE)(%)

  Net Profit/Sales (%)                             0.74                           ‑4.82                           2.59                           ‑4.33

  Return on Assets (%)                          0.95                            5.22                           3.02                            3.92

 

  Efficiency Ratios

  Sales/Working Capital                         5.64                            3.05                           4.18                          18.66

  Assets/Sales(%)                               78.44                        135.06                          85.80                        174.07

  Shareholders                                      1.87                          27.78                           5.61                            9.32

  Return(%)

  Average Inventory                          1,902.96                     3,989.30                     3,028.11                    54,914.83

  Period

  Average Collection                             87.13                          84.97                        100.68                        118.80

  Period

 

  Leverage Ratios

  Capital Employed                                2.59                            2.51                           2.22                            3.46

  Capital Structure (%)                         13.20                          15.64                          17.12                          26.24

 

  Number of                                                                             221                                                              221

  Companies within the

  industry (NACE C)

  Statistics based on                                       Manufacturing                                               Manufacturing

  NACE(C)

 

The statistical Industrial Average results are calculated against companies within the database for the specific country.

 

 

INDUSTRY SECTOR COMPARATIVE DATA

 

        Elements Taken              Result for specific                                                  Total Companies Used

                                                      company

DATE OF REGISTRATION                        01/04/1974                                                                             780

TOTAL EMPLOYEES                                       1,800                                                                             770

SALES (2011)                                          71,952,045                                                                              64

SALES (2010)                                          61,892,269                                                                             213

NET PROFIT (2011)                                      534,219                                                                              38

NET PROFIT (2010)                                    1,100,091                                                                             216

TOTAL ASSETS (2011)                             56,437,901                                                                              39

TOTAL ASSETS (2010)                             53,104,189                                                                             220

 

 

                                                                                                                                        Currency: EUROS

Payments

 

Subject's payments reported to be:        REGULAR

 

 

Representation

 

Other Comments

Other Comments:                                      Patent N° : 30700330

 

 

 

Interview & Reporter Comments

 

Name/Title:                                                Mr. Abdelmajid Tlemçani Chief Accountant

Comment:                                                 Subject has confirmed the general details shown in the report.

 

Reporter Comment Date:          09/08/2012

 

Reporter Comment:                  All legal forms in Morocco are obliged by law to be registered with the Registry Office

                                              (OMPIC :

 

Office Marocain De La Propriete Industrielle Et Commerciale) which is publicly available.

 

Subject was found registered and Information obtained from above official source is as follows :

 

Registered name /  registration number / date of registration  / registered address / legal form / capital / main principals – administrators / shareholders / shareholders% / related companies.

 

According to the Morocco Commercial Law, all legal forms except for proprietorship entities are obliged to file their financial accounts to the OMPIC.

 

Any other data stated in the report was obtained directly from the subject company and/or other publicly available information. Therefore it should be used as a point of reference as it is not possible to verify such data with official sources.

 

 


Conclusions

 

Local Reputation:                                       The company being investigated is considered by local reporters to be a

                                                                Fair / Normal Trade Risk.

 

 

General Conclusion:                                   Local informants consider granting of credit to be a fair trade risk.

 

Owner/Shareholders Comments:                 Some of the owners / shareholders have an active participation in the

                                                                running of the business.

 

Financial Results Trend:                             Financial Information indicates that the business activities of the company

                                                                are declining in strength.

 

Age of Business:                                       The company is long established in the local market.

 

 

Country Intelligence Information

 

Country:                       Morocco

Date:                            19/06/2012  00:00:00

 

Economy:                     Fiscal situation remains difficult in the first quarter June 2nd 2012

 

Government expenditure rose by 13.9% year on year in the first quarter of 2012, to Dh61.2bn (US$7bn). Current spending (excluding subsidies) grew at a rapid rate of 8.7% to Dh46.3bn, but subsidy costs were the main driver of the sharp rise in spending, increasing by 33.8% year on year to Dh14.9bn. This follows a surge in subsidy spending in 2011 and therefore comes off an already elevated base. The energy import bill grew by 27.2% year on year in the first quarter of 2012, to Dh21bn. Subsidies are a major burden on the public finances and are also highly erratic. In

1999‑2004 the cost of subsidies did not exceed an average of Dh5bn a year. Between 2005 and 2011 it ranged between Dh11bn in 2005 and a peak of Dh49bn in 2011, more than 50% higher than its previous record level in 2008 (Dh31bn). The new government has suggested that it will introduce a long‑awaited reform of the subsidy fund by the end of 2012 (February 2012, Economic policy), but the authorities are likely to tread carefully in such a politically sensitive area, and any proposal is unlikely to change the situation radically.

 

The wage bill remains another major strain on the public finances. It has grown from an annual average of Dh48bn in 1999‑2004 to Dh89bn in 2011. The wages and salaries bill expanded by 17% year on year to Dh24.9bn in the first quarter of 2012, accounting for 41% of ordinary expenditure. In these particularly turbulent times, the government will find it hard to cut back the public‑sector workforce.

 

Risk:     Sovereign risk

Stable. Morocco's fiscal account will remain deeply in deficit, owing to high recurrent expenditure on subsidies and wages, but the shortfalls should be financed mostly by borrowing from domestic banks, thus keeping the external debt stock in check, although some new borrowing is likely.


Currency risk

Stable. The current exchange‑rate system—a managed float—will remain in place. The Moroccan dirham will strengthen against the troubled euro, causing exporters problems in their main market, but the central bank has some capacity to intervene, although foreign‑exchange reserves are falling.

 

Banking sector risk

Stable. The banking sector has benefited from prudential regulation, relatively low levels of non‑performing loans (although these are rising) and limited direct foreign exposure, but government borrowing from the banks is a concern.

 

Political risk

The government will increase public spending in the short term to quell political and social protests over unemployment and poverty. Tensions over the disputed territory of Western Sahara may also lead to violent demonstrations.

 

Economic structure risk

Dependence on agriculture leaves economic performance vulnerable to weather conditions. The fiscal and external deficits fluctuate in line with movements in international commodity prices but are manageable.


FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.98

UK Pound

1

Rs.87.55

Euro

1

Rs.68.69

 

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.