|
Report Date : |
18.08.2012 |
IDENTIFICATION DETAILS
|
Name : |
P.T.
MUSIM SEMI MAS (MUSIM MAS) |
|
|
|
|
Registered Office : |
Jalan K.L. Yos Sudarso Km. 7,8 Tanjung Mulia, Medan North Sumatra |
|
|
|
|
Country : |
Indonesia |
|
|
|
|
Date of Incorporation : |
21.06.1972 |
|
|
|
|
Com. Reg. No.: |
No. AHU-10686.AH.01.02.TH.2009 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Oil Palm Plantation and Refinery |
|
|
|
|
No. of Employees : |
6,528 persons |
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 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Indonesia |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
P.T. MUSIM SEMI MAS (MUSIM MAS)
Head Office & Factory I
Jalan K.L. Yos Sudarso Km. 7,8
Tanjung Mulia, Medan
North Sumatra
Indonesia
Phones -
(62-61) 615511, 619866
Fax - (62-61) 624362, 619866, 6613060
Email - mmas@musimmas.com
Website - http://www.musimmas.com
Land Area - 40,000 sq.
meters
Building Space - 28,000 sq. meters
Region - Industrial
Zone
Status - Owned
Factory II
Jalan Oleo Kawasan
Industri Medan II
Saentis-Percut Sei Tuan,
Deli Serdang, Medan 20371
North Sumatra
Indonesia
Phones - (62-61)
6871123, 6851166, 6850880
Fax - (62-21)
6871152, 6871153
Land Area - 60,000 sq.
meters
Building Space - 20,000 sq. meters
Region - Industrial
Estate
Status - Rent
Factory III (planned)
Padang Pariaman
Kotamadia Padang
West Sumatra
Land Area - 100,000 sq.
meters
Building Area - None
Region - Industrial
Zone
Status -
Rent
Plantation
Location
Desa Pangkalan Lesung Tanjung Beringintalau
Kabupaten Riau
Riau Province
Land Area - 9,131.2 ha.
Building Area - None
Region - Plantation
Status - Rent
Date of
Incorporation :
21 June 1972
Legal Form :
P.T. (Perseroan Terbatas)
or Limited Liability Company
Company Reg.
No. :
The Ministry of Law and
Human Rights
- No. Y.A.5/238/4
Dated 28 June 1974
- No. 64029.AH.01.02.TH.2008
Dated 16 September 2008
- No. AHU-10686.AH.01.02.TH.2009
Dated 2 April 2009
Company Status
:
Private and Domestic Investment (PMDN) Company
Permit by the
Government Department :
a. The Capital Investment
Coordinating Board
- No. 1617/Sekr/SP.PMDN/1972
Dated 24 October 1972
- No. 342/DJAI/IUT-D.IV/PMDN/VI/1987
Dated 20 June 1987
- No. 02/II/PMDN/1991
Dated 2 January 1991
- No. 468/III/PMDN/1993
Dated 13 October 1993
- No. 13/II/PMDN/1999
Dated 29 March 1999
- No. 69/II/PMDN/1999
Dated 30 November 1999
- No. 63/II/PMDN/2001
Dated 16 October 2001
- No. 65/II/PMDN/2001
Dated 24 October 2001
- No. 50/III/PMDN/2005
Dated 14 April 2005
- No. 85/II/PMDN/2006
Dated 5 September 2006
b. The Department of Trade and
Industry
No. 616/T/Industri/1999
Dated 23 November 1999
c. The Department of Agriculture
No. HK.350/E.4.299.03-93
Dated 11 May 1993
d. The Department of Finance
NPWP No. 01.100.016.3-112.000
Related
Companies :
a. P.T. BINA KARYA PRIMA (Soap Manufacturing)
b. P.T. LAMBANG UTAMA (Soap Manufacturing)
c. P.T. SIRINGO-RINGO (Oil Palm Plantation and Palm Oil Refinery)
d. P.T. WILLIAM RESOURCES (Investment Holding)
Capital
Structure :
Authorized Capital :
Rp. 600,000,000,000.-
Issued Capital :
Rp. 439,220,000,000.-
Paid up Capital :
Rp. 439,220,000,000.-
Shareholders/Owners
:
a. Mr. Bachtiar Karim -
Rp. 150,288,000,000.-
Address : Jl.
Kalimantan No. 29/3-B
Medan,
North Sumatra
Indonesia
b. Mr. Burhan Karim -
Rp.
97,687,200,000.-
Address : Jl.
Kalimantan No. 29/3-B
Medan, North Sumatra
Indonesia
c. Mr. Bahari Karim -
Rp. 97,687,200,000.-
Address : Jl.
Kalimantan No. 29/3-B
Medan, North Sumatra
Indonesia
d. Mrs. Mikia Widjaja -
Rp.
30,057,600,000.-
Address : Jl.
Kalimantan No. 29/3-B
Medan, North Sumatra
Indonesia
e. P.T. WILLIAM RESOURCES - Rp. 63,500,000,000.-
Address : Jl.
K.L. Yos Sudarso Km. 7.8
Medan, North Sumatra
Indonesia
Lines of
Business :
a. Oil Palm Plantation and
Refinery
b. Soap Manufacturing
c. Warehouse and Stevedoring
Services
Production
Capacity :
Initial
Units
a. Soaps - 21,000 tons p.a.
b. Cooking Oils Shortening and
Margarines - 28,080 tons p.a.
c. Cocoa Butter Substitutes - 21,400
tons p.a.
d. Palm Kernel Oil (PKO) - 70,000 tons p.a.
e. Palm
Kernel Pellets - 33,750 tons p.a.
f. Crude Palm Oil (CPO) - 66,000
tons p.a.
g. Fresh Fruit Bunches - 228,000 tons p.a.
Expansion (March 29, 1999)
a. RBD Oleins - 420,000
tons p.a.
b. RBD Stearines - 69,000 tons p.a.
c. Fatty Acids - 15,000 tons p.a.
d. Soaps - 43,200 tons p.a.
Expansion
(November 30, 1999)
a. RBD Oleins - 210,000
tons p.a.
b. RBD Stearins - 69,000 tons p.a.
c. Fatty Acids - 15,000 tons p.a.
d. Soaps - 43,200 tons p.a.
Expansion (2000)
a. Crude Palm Oil (CPO) - 79,200 tons p.a.
b. Palm Kernel Oil (PKO) - 7,500 tons p.a.
c. Palm Kernel Expelers - 9,000 tons p.a.
Expansion (October 16, 2001)
a. Fatty Acids - 90,000 tons p.a.
b. Glycerine - 37,000 tons p.a.
c. Soaps - 70,000 tons p.a.
d. Fatty Alcohols - 120,000 tons
p.a.
Expansion (October 24, 2001)
a. Warehouse Services - Rp. 3.1 billion
b. Stevedoring Services - Rp.
30.0 billion
Expansion (September 5, 2006)
a. Refined Glycerine - 42,000 tons p.a.
b. Biodiesel
(methyl ester) - 350,000
tons p.a.
Total
Investment :
Initial units
a. Equity Capital - Rp.
115.0 billion
b. Loan Capital - Rp. 95.0 billion
c. Total Investment - Rp. 210.0
billion
Expansion( March 29, 1999)
a. Equity Capital - Rp.
100.0 billion
b. Loan Capital - Rp.
724.0 billion
c. Total Investment - Rp. 824.0
billion
Expansion (November 30, 1999)
a. Equity
Capital - Rp.
80.0 billion
b.
Reinvested Profit - Rp. 67.0 billion
c. Loan
Capital - Rp. 100.0 billion
d. Total
Investment - Rp. 247.0 billion
Expansion (2000)
a. Equity
Capital - None
b. Loan
Capital - Rp.
147.2 billion
c. Total
Investment - Rp. 147.2 billion
Expansion (October 16, 2001)
a. Equity
Capital - Rp. 106.5 billion
b.
Reinvested Profit - Rp. 68.0 billion
c. Loan
Capital - Rp. 1,162.5
billion
d. Total Investment - Rp. 1,377.0
billion
Expansion (October 24, 2001)
a. Equity
Capital - Rp. 38.9 billion
b. Loan
Capital - None
c. Total
Investment - Rp. 38.9 billion
Expansion (September 5, 2006)
a. Equity
Capital - None
b. Loan
Capital - Rp. 45.0 billion
c. Total
Investment - Rp. 45.0 billion
Started
Operation :
1973
Brand Name :
MUSIM MAS
Technical
Assistance :
None
Number of
Employee :
6,528 persons
Marketing Area
:
Export - 75% (for Cooking Oil and Derivative
Products)
45% (for Toilet and Washing Soaps)
Local - 25%
(for Cooking Oil and Derivative Products)
55% (for Toilet and Washing Soaps)
Main Customer
:
Wholesaler and Importer of Palm Oil, Soaps, Margarines, Supermarkets, etc
Market
Situation :
Very Competitive
Main
Competitors :
a. P.T. CISADANE RAYA CHEMICALS
b. P.T. ECOGREEN OLEOCHEMICALS
c. P.T. FLORA SAWITA CHEMINDO
d. P.T. SALIM IVOMAS PRATAMA Tbk
e. P.T. SINAR OLEOCHEMICAL
f. P.T. WILMAR NABATI INDONESIA
g. Etc.,
Business Trend
:
Growing
B a n k e r s
:
a. P.T. Bank DANAMON INDONESIA Tbk
Medan Branch
Jalan
Balai Kota No. 2
Medan, North Sumatra
Indonesia
b. P.T. Bank Rakyat
Indonesia Tbk
Medan Branch
Jalan Putri Hijau No. 2A
Medan, North Sumatra
Indonesia
Auditor :
Internal Auditor
Litigation :
No litigation record in our database
Annual Sales
(estimated) :
2009 – Rp. 12,700.0 billion
2010 – Rp. 14,112.0 billion
2011 – Rp. 15,340.0 billion
Net Profit
(estimated) :
2009 – Rp. 1,400.0 billion
2010 – Rp. 1,520.0 billion
2011 – Rp. 1,782.0 billion
Payment Manner
:
Average
Financial
Comments :
Healthy
Board of Management :
President Director - Mr. Bachtiar Karim
Director -
Mr. Burhan Karim
Board of Commissioners :
President Commissioner -
Mrs. Mikie Widjaja
Commissioner - Mr. Bahari
Karim
Signatories :
President Director (Mr. Bachtiar Karim) or the Director (Mr. Burhan
Karim) which must be approved by Board of
Commissioners
Management Capability :
Good
Business Morality :
Good
Credit Risk :
Low
Credit Recommendation :
Credit should be proceeded promptly
Proposed
Credit Limit :
Fairly large amount
The company
which has the full name of P.T. Perindustrian dan Perdagangan MUSIM SEMI MAS
abbreviated P.T. MUSIM MAS was established on June 21, 1972 with an authorized
capital of Rp. 150,000,000 entirely issued and paid
up. The company was founded by Mr. Anwar Karim AKA Lim Oei Lian and two brothers of his, namely Mr. Agus Karim and Mr. Arifin Karim as the original
shareholders. They are Indonesian businessmen of Chinese extraction. The
company notary deed has been changed several times. In 1989 Mr. Agus Karim and Mr. Arifin Karim withdrew and were
replaced by Mr. Bachtiar Karim
AKA Lim Ek Tjioe, Mr. Bachrum Karim AKA Lim Ek Kiong, Mr. Burhan
Karim AKA Lim Ek Kian and Mr. Bahari Karim AKA Lim Ek Tie, all being
the sons of Mr. Anwar Karim.
Mr. Anwar Karim died in
1997 and since then his shares have been taken over by his wife Mrs. Mikie Widjaya. In 1998 the
company's authorized capital was increased to Rp. 50,000,000,000
with an issued and paid up capital of Rp.
26,300,000,000. Later in 1999 the authorized capital was to be stepped up again
to Rp. 121,470,000,000 with an issued and paid up
capital of Rp. 116,800,000,000.
Then in May 2008
the authorized capital was raised to Rp.
600,000,000,000 issued capital to Rp. 439,220,000,000
entirely paid up. On the same occasion Mr. Bachrum Karim pulled out and replaced by P.T. WILLIAM RESOURCES as
new shareholder. With this time the composition of its shareholders has been
changed to become Mr. Bachtiar Karim
(34.2%), Mr. Burhan Karim
(22.2%), Mr. Bahari Karim
(22.2%), Mrs. Mikie Wijaya
(6.9%) and P.T. WILLIAM RESOURCES (14.5%). The latest revision of notary
document was made by Mrs. Hustiati SH., a public
notary in Medan was approved by the Ministry of Law
and Human Right in its Decision Letter No. AHU-64029.AH.01.02.TH.2008, dated
September 16, 2008. Then according to the latest revision of notary documents
of Mrs. Hustiati, SH., No. 66 dated 19 February 2009
the board of director and the board of commissioner reappointed to lead and
runs of the company’s operation. The latest revision of notary documents was
approved by the Ministry of Law and Human Rights in its decision letter No.
AHU-10686.AH.01.02.TH.2009 dated April 2, 2009.
P.T. MUSIM MAS is the parent company
of the MUSIM MAS Group, a big business group in the production and marketing of
cooking oil in the country. The members of companies of the MUSIM MAS Group are
P.T. BINA KARYA PRIMA in soap manufacturing, P.T. SIRINGO-RINGO in oil palm
plantation and refinery and P.T. LAMBANG UTAMA in soap manufacturing.
P.T. MUSIM MAS (P.T. MM) operates under Domestic Investment (PMDN)
facilities in the industry of manufacturing toilet soap and washing soap,
cooking oil, shortening and margarine. Its plant located on a 4 hectare land at
Jalan K.L. Yos Sudarso Km. 7.8 Medan, North
Sumatra, went into operation in 1973. Slowly its operations kept growing and in
1991 the company built a new plant in the Medan
Industrial Estate, North Sumatra. At present P.T. MM has become one of the big
size producers of cooking oil in the country. Besides, P.T. MM has also
diversified operations into oil palm plantation and product processing
business. The company's oil palm plantation is located in desa
Pangkalan Lesung, Tanjung Beringintalau, Kampar Kabupaten (sub province), Riau, and in desa Pasaman, West Sumatra. It is being planned for P.T. MM to
develop another oil palm plantation of 150,000 hectares in Irian
Jaya.
With fully integrated concept
implementation, P.T. MUSIM MAS has developed various businesses, many of which
are in support for the core business, palm. In 1988, it opened an about 1,400
ha palm plantation in Rantau Prapat.
The step went on with the development of palm kernel processing factory in 1990
and palm factory in 1991. Then in 1993, the corporation added up its main palm
business’s supporting facilities as Fresh Fruit Bunches (FFB) hoarding station,
workshop, and installation tanks spread out in 15 seaports in Indonesia,
margarine factory, soap, glycerin, specialty fats and addition of land and sea
transport fleets.
Stepping into the new Millennium or
in 2001, the business group had completed development of its refinery factory
in Belawan. With state-of-the-art technology, the
plant is run by four operators in every shifts and the whole plant operation is
under control of computerized system. In 2002, to handle down waste palm kernel
export, Medan based-company built a Dried Waste Palm
Kernel Terminal in Belawan Seaport with loading
capacity to 10.000 tons per day. Afterwards in 2003, P.T. MUSIM MAS stepped up
expansion in the oleo-chemical industry. With production capacity to 500 tons
per day, P.T. MUSIM MAS has become the Indonesia’s biggest oleo-chemical
company.
P.T. MUSIM MAS has been developing
another export product, fatty alcohol. Its plant is in the phase of completion
and expected to commence production in 2007. With the developments made over
the last 30 years, P.T. MUSIM MAS has earned reputation as one of the leaders
in the industry. It proved the company respectively received five-time Primaniyarta Award from 1992 to 1996. And in 2001, P.T.
MUSIM MAS was the Indonesia’s only recipient of Primaniyarta
Gold Award.
In 1999 P.T. MM had a production
capacity of 325,000 tons/year which has now increased to 877,000 tons per
year. About 75% of the company's cooking
oil and deviates are exported to Japan, the USA, Europe and the Middle East,
while some 45% of its toilet and washing soap production is exported to the
Middle East, Ghana, Myanmar and South Africa. The company also controls a very
wide domestic marketing network, covering Sumatera,
Java and Kalimantan. As from 2001 to 2009 P.T. MUSIM MAS received Primaniyarta Award from the Government due the company
continues export of agricultural products. Other than soap and cooking oil,
P.T. MM is also producing Crude Palm Oil (CPO), Palm Kernel Oil (PKO), Palm
Kernel Pellets, RBD Olein, RBD Stearin
and Fatty Acids. P.T. MM is now one of the biggest producers of cooking oil in
Sumatra.
P.T. MM' palm
methyl ester plant is expected to start in first half of 2007 with a capacity
of 50,000 metric ton per year. The plant is designed to produce low pour point
palm methyl ester and normal grade palm methyl ester from a variety of virgin
feedstock. The quality of the palm methyl esters produced is superior to
conventional methyl esters made from oil trans esterification
route.
The government
predicted that the country’s production of crude
palm oil (CPO) will drop sharply in 2010 as a result of long
drought brought about by the weather phenomenon the El Nino, which is feared to
hit the country toward the end of this year. The Plantation Director General Achmad Manggabarani said the
impact of the El Nino will be felt in 2010 that the country’s production of CPO
is feared to fall short of the target in 2010. Production is predicted to fall
15%-20% in 2010 compared with this year. The government has set CPO production
target at 23.20 million tons in 2010. Cultivated oil palm plantations are
expected to expand to 8.13 million hectares.
P.T. MM is a private national company engaged in oil palm
always awarded Primaniyarta for achievement of the
Ministry of Commerce continues to increase its exports. In the last five years
P.T. MM became the largest producer Oleochemical
products and continue to develop crude palm oil derivative products with new
products such as cocoa butter and vitamin E substitute. In addition P.T. MM has
developed a system of Clean Development Mechanism (CDM) in palm oil mills. With
this system the Green House Gas Emission can be reduced (using Methane Gas from
waste palm oil), as well as using the shells as a fuel to replace fuel extract
natural resources.
Since 2004, P.T. MM became a member of the RSPO (Roundtable Sustainable Palm
Oil) and in 2009 the first company in Indonesia that have RSPO certificates,
this means that PT MM has met the 8 principle of the 39 criteria of the RSPO. We observe that P.T. MUSIM MAS
operation has been growing and developing well and classified as one the
biggest exporter of agricultural commodities in the country.
Generally
outlook, the demand for CPO and PKO products has kept on rising well within the
last five years in line with the increasingly growing demand for CPO and PKO
products both from the local and foreign market. From the production sector,
Indonesian CPO and PKO production has kept on rising significantly. The
increase in production is caused by the increasingly growing wider of new oil
palm estate development and production in Indonesia within the last several
years. Besides, the national cooking oil production has kept on increasing in
the last five years in line with the changing of the publics’ consumption
patterns from using coconut cooking oil to palm cooking oil. Palm oil may
tumble as much as 7.4 percent by the end of October 2010 as Malaysian
production rebounds and Indonesian growers speed up shipments because of an
export tax, according to Godrej International Ltd.
Indonesia said August 2010 that production may fall to 19.0 million and 20
million tons, from 21 million in 2009. Global vegetable-oil demand will
increase by 4.5 million tons in the year beginning Oct. 1, 2010 exceeding the
3.8 million tons increase in supply, Ministry said. The national crude palm
oil, palm kernel oil production has kept on increasing in the last five years
in line with the changing of the publics’ consumption patterns from using
coconut cooking oil to palm cooking oil.
Indonesia’s Production, Consumption, Export of CPO, 2006-2010*
|
Year |
Production (Thousand Ton) |
Consumption (Thousand Ton) |
Export (Thousand Ton) |
|
2006 |
16,05 |
3,7 |
12,54 |
|
2007 |
17,27 |
4,0 |
12,65 |
|
2008 |
19,20 |
4,5 |
14,61 |
|
2009 |
21,14 |
4,9 |
16,94 |
|
2010* |
22,30 |
5,1 |
17,15 |
Source: Agriculture Ministry, GAPKI
*) Estimated by GAPKI (Indonesian Pal Oil
Association)
Besides, demand
for palm cooking oil has kept on increasing in the last five years in line with
the growing demand for palm cooking oil within and outside the country.
According to research, total palm cooking oil industries operating in Indonesia
are 53 units with production capacity 7.2 million tons but in 2005 reached 62
units with total production capacity of 9.7 million tons. The main business
players in cooking oil business are SMART (SINAR MAS Group) under cooking oil
brands of FILMA, KUNCI MAS; the SALIM Group through P.T. SALIM IVOMAS PRATAMA
under cooking oil brand of BIMOLI; the KPN Group and others.
The national
cooking oil production has kept on increasing in the last five years in line
with the changing of the publics’ consumption patterns from using coconut
cooking oil to palm cooking oil. The business position of P.T. MUSIM MAS is
favorable for having established wide marketing coverage in the country and
overseas markets. The growth of cooking oil production in the last five years
is pictured on the following table:
The Production of Palm Cooking Oil, 2004 – 2011*
|
Year |
Production (Ton) |
|
2004 |
4,527,700 |
|
2005 |
4,980,470 |
|
2006 |
5,428,670 |
|
2007 |
5,808,670 |
|
2008 |
6,186,233 |
|
2009 |
6,619,269 |
|
2010 |
6,826,000 |
|
2011 |
7,250,000 |
*) Estimated
Source: Department of Industry, Processed by ICB
Until this time P.T.
MM has not been registered with Indonesian Stock Exchange, so that they shall
not obliged to announce their financial statement. The management of P.T. MM is
very reclusive towards outsiders and rejected to disclose its financial
condition. We observed that total sales turnover of the company in 2009
amounted to Rp. 12,700.0 billion, increased to Rp. 14,112.0 billion in 2010 to Rp.
15,340.0 billion in 2011 and projected to go on rising by at least 5% in 2012.
The operation in 2011 yielded an estimated net profit of at least Rp. 1,782.0 billion and the company has an estimated total networth of at least Rp. 3,000.0
billion. We observe that P.T. MM is supported by MUSIM MAS Group, a large
business group 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). The company usually pays its debts punctually to suppliers.
P.T. MM's
management is headed by Mr. Bachtiar Karim AKA Lim Ek Tjhioe (55), a businessman with more than 29 years of
experience in the cooking oil and soap industry and trade. In day-to- day
operations he is assisted by younger brothers, namely Mr. Burhan
Karim AKA Lim Ek Kian (49). The company's management is made up of the
second generation in the MUSIM MAS Group. They also are employing a number of
professional managers from outside the family. The company's management
commands a very good reputation. They are widely connected with many private
businessmen within and outside the country, and also have quite good relations
with the government sector. We did not hear that the company has been black
listed by Bank Indonesia (Central Bank) and recorded at the court for
detrimental cases. So far we have never yet heard of the company's management having
been involved in business malpractices or having detrimental cases being
settled in local district court. We appraise P.T. MUSIM MAS to be very good for
normal business transactions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.70 |
|
|
1 |
Rs.87.54 |
|
Euro |
1 |
Rs.68.85 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.