MIRA INFORM REPORT

 

 

Report Date :

22.12.2012

 

IDENTIFICATION DETAILS

 

Name :

TONGYANG INC.

 

 

Registered Office :

99, Supyo-dong, Jung-gu, Seoul, Korea West Wing, Signature Towers 100-230

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

25.08.1955

 

 

Com. Reg. No.:

116-81-34352

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Ready-Mix Concrete

 

 

No. of Employees :

1,100

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but Correct

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

South Korea - ECONOMIC OVERVIEW

 

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and currently is among the world's 20 largest economies. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea''s development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. With the global economic downturn in late 2008, South Korean GDP growth slowed to 0.3% in 2009. In the third quarter of 2009, the economy began to recover, in large part due to export growth, low interest rates, and an expansionary fiscal policy, and growth was 3.6% in 2011. In 2011, the US-South Korea Free Trade Agreement was ratified by both governments and is projected to go into effect in early 2012. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP.

 

Source : CIA

 

 

Basic Information

 

Company Name

TONGYANG INC.

Registered Address

99, Supyo-dong, Jung-gu, Seoul, Korea

Building

West Wing, Signature Towers

Zip Code

100-230

Tel

+82-2-3770-3000

Fax

+82-2-3770-3305

E-mail

pbsmen@tymajor.co.kr

Website

www.tymajor.co.kr

Trading Address

West Wing, Signature Towers, 99, Supyo-dong, Jung-gu, Seoul, Korea

(New Address System : 100, Cheonggyecheon-ro, Jung-gu, Seoul, Korea)

Tel

+82-2-3770-3000

Fax

+82-2-3770-3305

Other Address

Hans Tower, 46-5, Guro-dong, Guro-Gu, Seoul, Korea (P.O.BOX 1107)

Tel

+82-2-791-1114

Fax

+82-2-791-1200

Other Address-Nam-Gwangju Factory

251-1, Songha-dong, Nam-gu, Gwangju, Korea

Tel

+82-62-674-1811~6

Fax

+82-62-671-0633

Other Address-Gimhae Factory

315, Sincheon-ri, Hallim-myeon, Gimhae-si, Gyeongsangnam-do, Korea

Tel

+82-55-346-6163

Fax

+82-55-346-6166

Other Address-Haman Factory

351-60, Yunoe-ri, Beopsu-myeon, Haman-gun, Gyeongsangnam-do, Korea

Tel

+82-55-584-3201

Fax

 

Other Address-Gwangju Factory

389, Munhyeong-ri, Opo-eup, Gwangju-si, Gyeonggi-do, Korea

Tel

+82-31-766-4937

Fax

+82-31-766-4941

Other Address-Gangneung Factory

494, Songhyeon-ri, Sonyang-myeon, Yangyang-gun, Gangwon-do, Korea

Tel

+82-33-672-0011~3

Fax

+82-33-672-0018

Other Address-Muan Factory

546, Cheonggye-ri, Cheonggye-myeon, Muan-gun, Jeollanam-do, Korea

Tel

+82-61-452-0461~4

Fax

+82-41-454-0421

Other Address

57-2, Seokhwa-ri, Yangseong-myeon, Anseong-si, Gyeonggi-do, Korea

Tel

+82-31-671-6671

Fax

+82-31-671-6675

Other Address-Daegu Factory/Span

838-4, Geomdan-dong, Buk-gu, Daegu, Korea

Tel

+82-53-384-3215

Fax

+82-53-384-3216

Other Address- Daegu EXEX Factory

2037-27, Bisan-dong, Seo-gu, Daegu, Korea

Tel

+82-53-341-8510

Fax

+82-53-341-8511

Other Address-Anseong Logistics Center

453-5, Yongdu-ri, Gongdo-eup, Anseong-si, Gyeonggi--do, Korea

Tel

+82-31-691-9414

Fax

+82-31-618-9381

Type

Export/Import

Industry

Manufacture of Ready-Mix Concrete

  Main Business

Ready-Mixed Concrete, Concrete Pile, Acrylic Fiber, Acrylic Yarn, Spun Bond, Lyocell Fiber, Garments, Construction

  Sub Business

Apartment Building Construction

Established (mm/dd/yyyy)

08/25/1955

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Sweaters(53101700)

Sell

Synthetic fabrics(11161800)

Sell

Wool yarn(11151701)

Sell

Mens tshirts(53103001)

Sell

Spunbonded nonwovens(11162201)

Sell

Womens slacks or trousers or shorts(53101504)

Sell

Synthetic fabrics(11161800)

Sell

Acrylic yarn(11151704)

Sell

Packaging paper(14121504)

Sell

Knit synthetic fabrics(11161804)

Sell

Acrylic fibers(11151504)

Sell

Apartment construction(72131501)

Sell

Commercial or industrial construction(72131600)

Sell

Renovation of buildings or landmarks or monuments(72102801)

Sell

Highway or road paving or surfacing(72131701)

Sell

Investment advice(84121700)

Sell

Iron bars(30101603)

Sell

Concrete and mortars(30111500)

Sell

Mortars(30111504)

Sell

Cement(30111601)

Buy

Buttons(53141505)

Buy

Threads(11151600)

Buy

Synthetic fabrics(11161800)

Buy

Packaging pouches or bags(24121502)

Buy

String or twine(31151507)

Buy

Zippers(53141503)

Buy

Wool fabrics(11161600)

Buy

Snaps(53141506)

Buy

Miscellaneous sewing supplies(53141600)

Buy

Printer labels(55121612)

 

 

CEO’s

 

Name

Yeom Yong-Woon

Address

 

Date of Birth

09/19/1959

Title

Vice Chairman & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

127,663,997,500

Employees

1,100

Formation

Listed Company(Korea Stock Exchange : 001520) as of 06/25/1976

A Company of Tong Yang Group

Bank Details

Woori Bank-Yoido Central Branch

Corporate Registered No.

110111-0005333

Business Registered No.

116-81-34352

Permit & Licenses

06/27/1995 ISO 9001

12/1995 ISO 9002

04/15/1996 KS Mark

 

Int’l Trade No.: 710084

Shareholder Position

Name

Shares

%

HYUN JAE-HYUN

8,013,201

3.14

LEE HYE-KYUNG

5,457,647

2.14

TONG YANG LEISURE CO., LTD.(160111-0018964)

88,782,137

34.77

TONG YANG FINANCIAL SERVICES CORP.(110111-2644733)

64,200,000

25.14

TONG YANG LIFE INSURANCE CO., LTD.(110111-0624688)

4,256,596

1.67

OTHERS

84,618,414

33.14

TOTAL

255,327,995

100.00

Company History

08/25/1955 Established

05/01/1968 Incorporated as TONGYANG CEMENT INDUSTRY CO., LTD.

07/01/1985 Changed company name to TONGYANG CEMENT CO., LTD.

07/14/1999 Acquired TONG YANG GLOBAL CO., LTD.

06/09/2000 Changed company name to TONG YANG MAJOR CORPORATION

02/29/2008 Acquired TONG YANG MAJOR INDUSTRY CO., LTD.

05/12/2008 Acquired HANIL SYNTHETIC FIBER CO., LTD.(190111-0000220)

07/27/2011 Changed company name to the present name from TONG YANG MAJOR CORPORATION

09/01/2011 Acquired TONG YANG MAGIC CO., LTD.(110111-0893374)

07/02/2012 Moved to the present HQ address from Alpha Bldg., 70, Seorin-dong, Jongno-gu, Seoul, Korea

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

Chairman

Mr.

Hyun Jae-Hyun

Korean

1949.02.12

Seoul National University, Korea

Vice Chairman

M/S.

Lee Hye-Kyung

Korean

1952.03.19

Ehwa Women's University, Korea

Vice Chairman & CEO

Mr.

Yeom Yong-Woon

Korean

1954.09.19

Seoul National University, Korea

President & CEO

Mr.

Kim Jung-Deuck

Korean

1955.01

Kyunghee University, Korea

Vice President & CEO

Mr.

Park Cheol-Won

Korean

1954.09.21

Yonsei University, Korea

Executive Director & CEO

Mr.

Lee Sang-Cheol

Korean

1963.01.21

Korea University, Korea

Vice President

Mr.

Kim Young-Hoon

Korean

1960.10.17

Seoul National University, Korea

Executive Director & CFO

Mr.

Wang Sung-Ho

Korean

1964.08.02

Hongik University, Korea

Director

Mr.

Han Boo-Hwan

Korean

1948.09.20

Seoul National University, Korea

Director

Mr.

Lee Won-Chang

Korean

1951.11.11

Korea University, Korea

Director

Mr.

Han Tae-Kyu

Korean

1949.03.20

Seoul National University, Korea

Outside Director

Mr.

Song Tae-Ho

Korean

1954.09.23

Seoul National University, Korea

Director

Mr.

Lee Geon-Joo

Korean

1957.02.

Cheonnam National University, Korea

Director

Mr.

Hwang Kook-In

Korean

1957.09.09

Youngnam University, Korea

Executive Director

Mr.

Hyun Jung-Dam

Korean

1977.05.05

Stanford Graduate School  of Business, USA

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2012

786,795,143,283

1,817,386,844,068

-9,292,346,596

2011

877,037,698,367

1,776,093,594,110

-56,275,129,583

2010

678,741,186,302

1,557,712,154,024

-155,129,992,228

2009

681,971,405,568

1,460,360,553,273

-68,631,582,582

2008

571,763,311,019

1,374,930,486,613

-370,025,676,028

2007

380,533,995,317

1,067,043,619,475

-23,386,264,271

2006

327,390,300,901

838,362,967,013

17,892,656,481

2005

305,221,243,712

1,004,705,712,773

-44,284,811,778

(*)Figures are based on the K-IFRS Accounting System.

 

Financial Description

 

Authorized Capital(KRW)

1,000,000,000,000

Paid-Up Capital(KRW)

127,663,997,500

Total Issued Shares

255,327,995

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

1,817,386,844,068

1,776,093,594,110

1,557,712,154,024

Current Assets

649,906,021,136

572,489,451,361

560,200,254,272

Inventories

109,851,077,322

106,155,565,982

67,261,777,934

Trade Receivables

318,624,010,734

329,916,991,391

179,943,599,652

Other Receivables-Construction

45,925,786,746

34,145,363,345

10,186,503,178

Short-Term Receivables

76,795,583,494

36,772,465,068

23,159,627,002

Current Financial Instruments

33,423,611,474

21,389,367,970

11,478,190,367

Other Current Assets

16,183,102,888

10,411,633,426

12,580,614,294

Marketable Financial Instruments

106,260,000

191,420,000

164,227,060,000

Current Financial Instruments

 

 

5,000,000,000

Derivatives

45,870,343

 

 

Deferred Income Tax Assets

500,899,741

2,278,205,054

1,579,110,686

Other Current Assets

22,249,713,024

21,513,544,069

21,106,834,930

Cash & Cash Equivalents

26,200,105,370

9,714,895,056

63,676,936,229

Non-Current Assets

1,167,480,822,932

1,203,604,142,749

997,511,899,752

Tangibles

596,763,759,583

589,422,106,621

459,292,731,187

Investment_Real Estates

120,864,537,757

121,567,101,819

123,196,461,379

Operating Rights

85,095,907,199

87,044,868,109

90,718,832,922

Intangibles

41,353,684,249

37,428,258,646

30,127,154,881

Investment_Subsidiaries

248,853,575,636

292,541,467,170

235,116,214,969

Investment_Related Companies

16,988,957,848

16,988,957,848

12,683,492,580

Non-Current Marketable Financial Instruments

20,604,554,119

19,723,477,101

21,936,859,749

Derivatives

247,235,433

 

 

Long-Term Loans

19,253,396,532

26,378,438,908

4,124,058,694

Non-Current Financial Instruments

24,500,000

24,500,000

511,000,000

Other Non-Current Receivables

9,185,468,732

9,907,447,545

6,653,421,983

Other Non-Current Assets

8,245,245,844

2,577,518,982

13,151,671,408

Total Liabilities

1,584,319,793,023

1,534,025,089,353

1,648,370,094,518

Current Liabilities

1,360,457,017,428

1,274,500,883,471

1,377,565,313,382

Current Portion of Provisions

305,476,633

256,366,117

 

Trade Payables

179,748,561,964

198,683,712,421

136,641,182,949

Short-Term Borrowings

211,581,654,474

286,633,943,523

200,365,768,776

Short-Term Debentures

10,000,000,000

10,000,000,000

 

Current Portion of Long-Term Debts

85,873,797,272

62,982,945,369

48,651,773,242

Current Portion of Debentures

813,967,780,057

635,034,019,101

705,819,016,516

Current Portion of Derivatives

 

 

222,097,427,535

Other Derivatives

96,359,888

368,598,954

 

Other Current Debts

35,095,353,600

43,290,911,080

37,141,870,654

Other Payables-Construction

10,658,454,616

21,173,628,798

10,991,630,584

Other Current Liabilities

13,129,578,924

16,076,758,108

15,856,643,126

Non-Current Liabilities

223,862,775,595

259,524,205,882

270,804,781,136

Provisions

8,969,694,872

9,768,555,896

10,123,080,430

Long-Term Borrowings

130,718,413,626

166,792,960,000

206,252,920,000

Other Non-Current Liabilities

16,312,498,776

13,953,326,638

10,298,675,775

Derivatives

1,149,635

 

 

Finance Guarantee Contract

2,141,356,293

3,465,939,187

2,181,342,015

Provision for Severance & Retirement

40,901,827,732

40,370,916,124

28,442,798,094

Deferred Income Tax Credit

24,817,834,661

25,172,508,037

13,505,964,822

Capital Stock

127,663,997,500

127,663,997,500

428,950,480,000

Capital Surplus

162,617,576,964

277,537,713,424

 

Treasury Stock

-49,580,227,019

-49,580,227,019

-6,603,231,267

Profit Surplus

-9,292,346,596

-578,322,769,535

-526,232,235,378

Installments

3,475,285,083

3,184,392,199

15,044,281,038

Others

-1,817,234,887

461,585,398,188

-1,817,234,887

Total Equity

233,067,051,045

242,068,504,757

-90,657,940,494

Liab. & Shareholder’s Equity

1,817,386,844,068

1,776,093,594,110

1,557,712,154,024

 

 

Income Statement

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Sales

786,795,143,283

877,037,698,367

678,741,186,302

Cost of Sold Goods

627,040,201,682

712,347,697,949

588,729,240,632

Gross Profit

159,754,941,601

164,690,000,418

90,011,945,670

Selling & Admin. Expenses

109,038,957,610

111,279,225,622

75,613,020,164

Other Operating Income

16,873,319,196

7,489,299,379

24,077,965,361

Other Operating Expenses

16,868,627,948

43,866,186,718

55,481,547,702

Operating Income

50,720,675,239

17,033,887,457

-17,004,656,835

Finance Income

13,269,934,446

33,887,520,826

17,175,906,886

Finance Expenses

86,415,517,726

103,302,901,907

140,963,134,938

Profits from Disposal of Subsidiaries

10,298,136,562

-7,095,374,140

 

Income Before Taxes

-12,126,771,479

-59,476,867,764

-140,791,884,887

Income Taxes Expenses

-2,834,424,883

-3,201,738,181

14,338,107,341

Net Income

-9,292,346,596

-56,275,129,583

-155,129,992,228

 

Cash Flows

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

-41,059,723,381

-97,654,036,195

-109,150,335,312

Net Income

-9,292,346,596

-56,275,129,583

-155,129,992,228

Adjustment

103,921,856,382

146,148,792,829

185,897,864,207

Changes in Asset/ & Liability

-68,293,783,527

-100,422,648,929

-40,050,847,352

Interests Received

3,354,890,838

5,934,693,219

9,744,038,051

Interests Paid

-77,477,177,966

-92,400,004,621

-86,970,832,863

Dividends Received

4,247,549,354

1,027,406,296

1,324,281,405

Income Taxes

2,479,288,134

-1,667,145,406

-23,964,846,532

Cash Flows from Investing

-24,428,571,300

-174,465,481,543

-122,386,943,291

Cash Flows from Financing

81,972,974,972

218,170,085,096

191,915,759,994

Increase/Decrease in Cash

16,485,210,314

-53,962,041,173

-39,635,775,744

Cash at the Beginning of Year

9,714,895,056

63,676,936,229

103,312,711,973

Cash at the End of Year

26,200,105,370

9,714,895,056

63,676,936,229

 

 

Products, Technologies, Services Description

 

Main Products & Services

REMICON(Ready Mixed Concrete) Business

Construction Business

Textile Business

 

Brand Name : TOPCON, N-PART, MAGIC

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

TONG YANG CEMENT CORP.(110111-2462630)

Customers

 

Competitors

SSANG YONG REMICON CO., LTD.

10TH FL., SSANGYONG BLDG., 24-1, JEODONG 2-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-2270-5862  FAX:+82-2-2270-5445

 

HANIL INDUSTRIAL CO., LTD.

2ND FL., UDEOK BLDG., 832-2, YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-3466-9600  FAX:+82-2-3466-9601~2

 

SUNIL INDUSTRIAL CO., LTD.

542-5, DOGOK 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-3462-0900  FAX:+82-2-3462-4374

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

TONG YANG SECURITIES INC.(110111-0042492)

TONGYANG CEMENT CONSTRUCTION CORP.(144611-0012544)

TONG YANG CEMENT CORP.(110111-2462630)

FIN TUBE TECHNOLOGY CO., LTD.(161511-0037981)

TONGYANG REMICON CO., LTD.(110111-0262652)

HAN SEUNG REMICON CO., LTD.(124411-0017518)

DAMUL JEIHO CORPORATION (144611-0010001)

TONG YANG A&D CO., LTD.(110111-3476135)

TONG YANG SYSTEMS CORPORATION (110111-0766703)

KT FDS CORPORATION(110111-0696455)

TONGYANG ONLINE CO., LTD.(110111-1919608)

MICLUB.COM KOREA, LTD.(110111-1846942)

NOUVEAU CHEF CO., LTD.(134611-0038609)

TONG YANG LEISURE CO., LTD.(160111-0018964)

TONG YANG RESORT.CO., LTD.(141311-0010513)

TONG YANG LIFE INSURANCE CO., LTD.(110111-0624688)

TONG YANG VENTURE CAPITA CORP.(160111-0017641)

TONG YANG CAPITAL CO., LTD.(110111-1142382)

TONG YANG FINANCIAL SERVICES CORP.(110111-2644733)

TONGYANG INVESTMENT TRUST MANAGEMENT CO., LTD.(110111-2033150)

Affiliates-Overseas

BUKOOK REMICON

TONGYANG ASIA

SUNDONG REMICON

DONGGUN REMICON

HWASEO HANIL TEXTILE CO., LTD.(CHINA)

HANIL LARRY TEXTILE CO., LTD.(CHINA)

PT. HANILINDONESIA

HANIL HUNDRAS

H.T.C

HANIL HONG KONG

PT. BUSANA INDAH GLOBAL

TONG YANG AMERICA

TONG YANG HONG KONG

PT MITRA BINTARA PERKASA

ORION SQUIRE CAPITAL INC.

TONG YANG SAVINGS BANK INC.

TONG YANG SECURITIES HONG KONG LTD.

TOYO ONLINE JAPAN CO., LTD.

TYGEM H.K. CO., LTD.

TONG YANG-HPT HIGH TECH

TONG YANG SECURITIES (CAMBODIA) PLC.

Overseas Office

TONG YANG AMERICA, INC.

150 EAST 52ND STREET, 25TH FLOOR, NEW YORK, NY 10022, U.S.A

TEL:+1-212-415-1008 FAX:+1-212-415-1010

 

PT. MITRA BINTARA PERKASA

GEDUNG GRAHA PRATAMA LANTAI 11 JI. MT. HARYONO KAV. 15 JAKARTA 12810, INDONESIA

TEL:+62-21-8379-3640~1 FAX:+62-21-8379-3646

 

BEIJING SHUNTONG READY-MIXED CONCRETE

YAOPOCUNXI, RENHEZHEN, SHUNYIQU, BEIJING, CHINA

TEL:+86-10-8940-7962 FAX:+86-10-8940-7982

 

BEIJING TONGJIAN READY-MIXED CONCRETE

8 HAO JIN ZHAN XIANG PI CUN GONG YE QU CHAO YANG QU BEIJING, CHINA

TEL:+86-10-6548-7577 FAX:+86-10-6548-7595

 

TONG YANG MAJOR BEIJING OFFICE

YAOPOCUNXI, RENHEZHEN, SHUNYIQU, BEIJING, CHINA

TEL:+86-10-8940-7962 FAX:+86-10-8940-7982

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

 

Major Shareholders

 

Cooperative Enterprise

-Insured company

HYUNDAI MARINE & FIREINSURANCE CO., LTD.(110111-0035893)

MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328)

 

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (Million KRW)

Status

 

 

 

 

 

 

 

 

 

 

 

 

 

 

There are 14 cases Defendant(s)/ Debtor(s)/ Respondent(s) amounting 35,874,000,000 KRW.

 

 

News Clipping

 

Not Available

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.08

UK Pound

1

Rs.89.53

Euro

1

Rs.72.77

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.