MIRA INFORM REPORT
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Report Date : |
21.02.2012 |
IDENTIFICATION DETAILS
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Name : |
ITOCHU HOME FASHION CORPORATION |
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Registered Office : |
Asahi Seimei Sunaga Bldg 5F, 2-2-6 Nihombashi-Bakurocho Chuoku Tokyo 103-0002 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
June 1996 |
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Com. Reg. No.: |
(Tokyo-Chuoku) 37347 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import, Export, Wholesale of
home furnishings |
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No. of Employees
: |
55 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 42.4 Million |
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Status : |
Satisfactory |
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Payment
Behaviour : |
Regular |
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Litigation : |
--- |
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 – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Japan |
a1 |
a1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
ITOCHU HOME FASHION CORPORATION
Itochu Home
Fashion KK
Asahi Seimei
Sunaga Bldg 5F, 2-2-6 Nihombashi-Bakurocho Chuoku Tokyo 103-0002 JAPAN
Tel:
03-3663-9431 Fax: 03-3663-0660
URL: http://www.itochuhf.co.jp
E-Mail address: (thru the URL)
Import,
export, wholesale of home furnishings
Osaka,
Fukuoka
China
(subcontracted)
KENJI INOUE,
PRES
Harumitsu
Utani, s/mgn dir
Tomihiko
Ishikawa, dir
Yen
Amount: In million Yen, unless
otherwise stated
FINANCES FAIR A/SALES Yen 7,380 M
PAYMENTS REGULAR CAPITAL Yen
335 M
TREND UP WORTH Yen 353 M
STARTED 1996 EMPLOYES 55
TRADING FIRM SPECIALIZING IN HOME FURNISHINGS, OWNED BY ITOCHU CORP.
FINANCIAL SITUATION CONSIDERED
FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 42.4
MILLION, 30 DAYS NORMAL TERMS
The subject company was established as Sanki Interior Corp and in 1998
merged with Itochu Living Corporation and renamed as captioned, and became
Itochu Corp’s subsidiary. This is a
trading firm, with mfg division, for import, export and wholesale of home
furnishings: interior goods, upholstery, beds & beddings, apparel, other
(See OPERATION). Goods are manufactured at subcontracted mfr
in Vietnam and imported. Operates online
shop “Plus Value”. Clients include major
chain stores, specialty stores, other, nationwide.
The sales volume for Mar/2011 fiscal term amounted to Yen 7,380 million,
a 9% up from Yen 6,755 million in the previous term. Sales in the previous term were substantially
affected by the global economic downturn.
The global economy basically continued to follow a course of recovery,
led by growth in the economies in emerging countries. Exports were robust. In the Textile Company, the subject being one
of them, the parent acquired Java Holdings Co Ltd and Leilian Co Ltd in the
second half of the previous fiscal year.
This led to higher revenue in the year under review, while Yen-Dollar
rates followed a course of Yen appreciation and eroded profits in Yen terms. The recurring profit was posted at Yen 69
million, while the bottom line posted Yen 69 million net losses for the term,
compared with Yen 151 million recurring profit and Yen 46 million net losses,
respectively, a year ago.
For the current term ending Mar 2012 the recurring profit is projected
at Yen 50 million and the net profit at Yen 50 million, respectively, on a 5%
rise in turnover, to Yen 4,750 million.
The acquired two firms will contribute in full term.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 42.4 million, on 30 days normal terms.
Date Registered: Jun 1996
Regd No.: (Tokyo-Chuoku) 37347
Legal Status:
Limited Company (Kabushiki Kaisha)
Authorized:
37,600 shares
Issued: 9,400 shares
Sum: Yen 335 million
Major shareholders (%): Itochu Corp* (98), Sakase
Adtech (2)
No. of shareholders: 2
*.. Itochu Corp, one of top five general trading houses, founded 1949,
listed Tokyo, Osaka, Nagoya, Fukuoka & Sapporo S/E’s, capital Yen 202,241
million, sales Yen 11,392,589 million, operating profit Yen 256,082 million,
recurring profit Yen 182,097 million, net profit Yen 160,975 million, total
assets Yen 5,673,683 million, net worth Yen 1,397,510 million, employees
71,561, pres Masahiro Okafuji
Consolidated
Financials are attached (See SUPPLEMENTS)
Nothing detrimental is known as
to the commercial morality of executives.
Activities: Imports, exports
and wholesales home furnishings (100%)
Goods are mostly manufactured at subcontracted factory in Vietnam.
(Handling Items): Curtains,
blinds, roll screen, coverings, sofa cover, cushion, stuffed animals &
dolls, furniture, kitchen cloth, tableware, beds & beddings, blanket,
pillows, towelket, towels, matt, pat, home wear, bags, porches, footwear,
gifts, accessories, other
Clients: [Supermarkets,
chain stores] Ryohin Kikaku Co, Aeon Co, Ito-Yokado, QVC Japan (TV shopping),
Nitori Co, other
No. of accounts: 300
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Imports from Vietnam, other.
Domestically supplied from: Itochu Corp, Sanyo Feather Co, Fujiwara Co,
other
Payment record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are leased and maintained satisfactorily.
Bank References:
·
Mizuho Bank (Yokoyamacho)
·
SMBC (Asakusabashi)
Relations:
Satisfactory
(In Million Yen)
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Terms Ending: |
29/02/2012 |
28/02/2011 |
28/02/2010 |
28/02/2009 |
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Annual
Sales |
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7,750 |
7,380 |
6,755 |
7,862 |
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Recur.
Profit |
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50 |
49 |
151 |
172 |
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Net
Profit |
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50 |
-69 |
-46 |
96 |
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Total
Assets |
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4,668 |
4,231 |
3,913 |
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Current
Assets |
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4,342 |
3,835 |
3,465 |
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Current
Liabs |
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4,021 |
3,576 |
3,231 |
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Net
Worth |
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353 |
430 |
474 |
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Capital,
Paid-Up |
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335 |
335 |
335 |
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Div.P.Share(¥) |
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0.00 |
0.00 |
0.00 |
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<Analytical Data> |
(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
5.01 |
9.25 |
-14.08 |
0.10 |
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Current Ratio |
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.. |
107.98 |
107.24 |
107.24 |
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N.Worth Ratio |
.. |
7.56 |
10.16 |
12.11 |
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R.Profit/Sales |
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0.65 |
0.66 |
2.24 |
2.19 |
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N.Profit/Sales |
0.65 |
-0.93 |
-0.68 |
1.22 |
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Return On Equity |
.. |
-19.55 |
-10.70 |
20.25 |
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Notes:
Forecast (or estimated) figures for the 29/02/2012 fiscal term.
CONSOLIDATED FINANCIALS OF ITOCHU CORP
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2011 |
31/03/2010 |
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INCOME STATEMENT |
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Annual Sales |
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11,392,589 |
10,306,799 |
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Cost of Sales |
10,351,298 |
9,382,433 |
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GROSS PROFIT |
1,041,291 |
924,366 |
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Selling & Adm Costs |
785,209 |
776,952 |
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OPERATING PROFIT |
256,082 |
147,414 |
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Non-Operating P/L |
-73,985 |
7,572 |
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RECURRING PROFIT |
182,097 |
154,986 |
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NET PROFIT |
160,975 |
128,153 |
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BALANCE SHEET |
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Cash |
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630,722 |
475,674 |
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Receivables |
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1,434,363 |
1,426,682 |
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Inventory |
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504,342 |
476,066 |
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Securities, Marketable |
3,560 |
7,140 |
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Other Current Assets |
502,844 |
(492,081) |
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TOTAL CURRENT ASSETS |
3,075,831 |
1,893,481 |
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Property & Equipment |
643,629 |
666,351 |
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Intangibles |
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Investments, Other Fixed Assets |
1,954,223 |
2,917,015 |
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TOTAL ASSETS |
5,673,683 |
5,476,847 |
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Payables |
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1,239,609 |
1,217,599 |
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Short-Term Bank Loans |
241,915 |
229,236 |
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Other Current Liabs |
561,355 |
545,723 |
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TOTAL CURRENT LIABS |
2,042,879 |
1,992,558 |
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Debentures |
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Long-Term Bank Loans |
2,159,929 |
2,107,589 |
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Reserve for Retirement Allw |
52,564 |
43,314 |
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Other Debts |
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20,801 |
22,033 |
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TOTAL LIABILITIES |
4,276,173 |
4,165,494 |
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MINORITY INTERESTS |
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Common
stock |
202,241 |
202,241 |
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Additional
paid-in capital |
114,291 |
137,506 |
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Retained
earnings |
1,035,222 |
900,397 |
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Evaluation
p/l on investments/securities |
(139,038) |
(194,254) |
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Others |
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187,481 |
268,137 |
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Treasury
stock, at cost |
(2,687) |
(2,674) |
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TOTAL S/HOLDERS` EQUITY |
1,397,510 |
1,311,353 |
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TOTAL EQUITIES |
5,673,683 |
5,476,847 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2011 |
31/03/2010 |
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Cash
Flows from Operating Activities |
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336,868 |
295,376 |
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Cash
Flows from Investment Activities |
-230,420 |
-196,318 |
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Cash
Flows from Financing Activities |
52,905 |
-258,987 |
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Cash,
Bank Deposits at the Term End |
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630,722 |
475,674 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2011 |
31/03/2010 |
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Net
Worth (S/Holders' Equity) |
1,397,510 |
1,311,353 |
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Current
Ratio (%) |
150.56 |
95.03 |
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Net
Worth Ratio (%) |
24.63 |
23.94 |
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Recurring
Profit Ratio (%) |
1.60 |
1.50 |
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Net
Profit Ratio (%) |
1.41 |
1.24 |
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Return
On Equity (%) |
11.52 |
9.77 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.49.21 |
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UK Pound |
1 |
Rs.77.75 |
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Euro |
1 |
Rs.64.58 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.