MIRA INFORM REPORT

 

 

Report Date :

21.03.2012

 

IDENTIFICATION DETAILS

 

Name :

COUNTRY ROAD CLOTHING PTY. LTD.

 

 

Formerly Known As :

THE COUNTRY ROAD CLOTHING COMPANY SHOPS PTY. LTD.

 

 

Registered Office :

658 Church Street Richmond Victoria 3121

 

 

Country :

Australia

 

 

Financials (as on) :

30.06.2011

 

 

Date of Incorporation :

14.03.1978

 

 

Com. Reg. No.:

005419447

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Designing and retailing of apparel, homewares and related accessories.

 

 

No. of Employees :

2,000 (Country Road Group)

 

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

 

Maximum Credit Limit :

USD 2,000,000

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Australia 

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


IDENTIFICATION DETAILS

 

Verified Address

Subject name :              COUNTRY ROAD CLOTHING PTY. LTD.

Business address :        658 Church Street

Town :                           Richmond

Province :                      Victoria

Zip/postal code :            3121

Country :                       Australia

Tel :                              +61 3 92671400

Fax :                             +61 3 92671300

Website :                      www.countryroad.com.au

 

Registered address :      658 Church Street

Town :                           Richmond

Province :                      Victoria

Zip/postal code :            3121

Country :                       Australia

Postal address :            Private Bag 750

Town :                           Richmond

Province :                      Victoria

Zip/postal code :            3121

Country :                       Australia

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :        14/03/1978

Legal form :                               Australian Proprietary Company

Chief executive :                        Howard Roy Goldberg

Issued & paid up capital :           AUD 27,500,002

Sales turnover :              AUD 423,791,000 (Group consolidated, 12 Months 30/06/2011)

Net income :                              AUD 18,218,000 (Group consolidated, 12 Months 30/06/2011)

Total fixed assets :                     AUD 149,280,000 (Group consolidated, 12 Months 30/06/2011)

Line of business :                       Designing and retailing of apparel, homewares and related accessories.

Staff employed :                         2,000 (Country Road Group)

 

 

CREDIT RISK OPINION

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is progressing

Management experience :           Management is adequately experienced

Financial performance :              Financial performance is good

Organization structure :              Organizational structure is stable

Detrimental :                  No detrimental records found

Payment history :                      No payment delays noted

Credit amount suggestion :         USD 2,000,000

Credit amount asked :                Not described.

Comments :                              Larger credit can still be considered. The Subject is well positioned in the market and the financial stability of the group is positive.

 

STATUTORY DETAILS

 

Registry Data

Registration date :                      14/03/1978

Legal form :                               Australian Proprietary Company

Registration no Australian Company Number: 005419447

Registered authority :                 Australian Securities and Investments Commission

Fiscal/ Tax no :                          Australian Business Number: 84005419447

Registry status :                        Live/Active

Previous name :                         THE COUNTRY ROAD CLOTHING COMPANY SHOPS PTY. LTD.

WAGGONER PTY. LTD. (initial)

Change of legal form :                 None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

 

Name :                          Howard Roy Goldberg

Designation :                 Chief Executive Officer

 

Name :                          Sophie Holt

Designation :                 Executive Director, Creative Director

 

Name :                          David Andrew Thomas

Designation :                 Chief Financial Officer

 

Name :                          Derek Muirhead

Designation :                 Group General Manager - Merchandise

 

Name :                          Jacqui Moore

Designation :                 Group General Manager - Marketing

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          Norman William Thomson

Designation :                 Director

Appointment date :         31/01/06

Address :                      2 Firdale Road

Newlands

Cape Town 7700

South Africa

Biography :                    Born on 26-06-1951 in Pretoria, South Africa.

Mr. Norman Thomson serves as Non-Executive Director at Country

Road Ltd. Mr. Thomson was appointed to the Board on December 6,

2000. He is currently the Director of Finance and an Executive

Director of Woolworths Holdings Limited (listed on the Johannesburg

Stock Exchange). He has been with Woolworths since 1991 and has

held positions in Logistics, Foods, Operations, and Supply Chain. He

holds a Bachelor of Commerce and is a qualified accountant.

 

Name :                          David Andrew Thomas

Designation :                 Director

Appointment date :         05/08/09

Address :                      22-23 Larnaca Court

Templestowe,                VIC 3106

Australia

Biography :                    Born on 07-12-1976 in Melbourne, Victoria, Australia.

Mr. David Thomas serves as Chief Financial Officer, Company

Secretary and Executive Director at Country Road Ltd since

September 23, 2010. Mr. Thomas was appointed as Company

Secretary on July 24, 2009. He joined the Company in 2002 and held

various executive roles before being appointed as Chief Financial

Officer and Company Secretary in July 2009. He holds a Bachelor of

Commerce, CPA, Masters Degree of Business, Masters Degree of

Marketing and an Executive Certificate in Retailing.

 

Name :                          Ian Moir

Designation :                 Director

Appointment date :         23/10/98

Address :                      11A Caraar Creek Road

Mornington, VIC 3931

Australia

Biography :                    Born on 10-12-1958 in Dunfermline, United Kingdom.

Mr. Ian Moir serves as Chairman of the Board of Country Road Ltd

since November 18, 2011. Mr. Moir was appointed to the Board on

October 23, 1998. He was formerly the Chief Executive Officer of the

Company. Prior to working for the Company, he was Executive

Director and Chief Operating Officer of the Woolmark Company. He

has a Masters Degree in Business Administration, a Masters Degree

in Economics and is a qualified Chartered Accountant.

 

Name :                          Sophie Holt

Designation :                 Director

Appointment date :         20/10/10

Address :                      3 The Avenue

Toorak, VIC 3142

Australia

Biography :                    Born on 08-06-1965 in Melbourne, Victoria, Australia.

Ms. Sophie Holt serves as Executive Director and Creative Director at

Country Road Ltd since January 1, 2010. Ms. Holt was appointed to

the Board on December 29, 2009. She has been with Country Road

since 2003. Prior to joining the company, Sophie held the position of

Head of Design at Witchery.

 

Name :                          Howard Roy Goldberg

Designation :                 Director

Appointment date :         07/03/11

Address :                      8 Amaroo Avenue

Castle Cove, NSW 2069

Australia

Biography :                    Born on 14-05-1952 in Cape Town, South Africa.

Mr. Howard Goldberg has been appointed as Chief Executive Officer

and Director of Country Road Limited with effect from March 7, 2011.

Mr. Goldberg has over 30 years of senior executive management

experience in retail and wholesale manufacturing industries in

Australia. Mr. Goldberg is currently the Managing Director of the

General Pants Group. Prior to joining General Pants Group, he was

the CEO of Canterbury International Australasia and previously held

senior positions at Best and less and Pacific Brands. Mr. Goldberg

also sits on the L’Oreal Melbourne Fashion Festival Board as a

non-executive director.

 

Name :                          Paula Disberry

Designation :                 Director

Appointment date :         28/02/12

Address :                      12 Hove Road

Camps Bay

Cape Town 8005

South Africa

Biography :                    Born on 15-10-1967 in Hexham, United Kingdom.

 

Name :                          David Thomas

Designation :                 Company Secretary

Appointment date :         09/10/09

Address :                      22-23 Larnaca Court

Templestowe, VIC 3106

Australia

Biography :                    Born on 07-12-1976 in Templestowe, Victoria, Australia.

 

Staff employed :             2,000 (Country Road Group)

 

Key Advisors

 

Auditors :                      ERNST & YOUNG

Ernst & Young Building

8 Exhibition Street

Melbourne,VIC 3000

Australia

 

SHARE CAPITAL

 

Composition

Authorized Capital :        AUD 27,500,002

No of shares :                27,500,002 Ordinary Shares

Share par value :            AUD 1

Issued capital :              AUD 27,500,002

Paid up capital :             AUD 27,500,002

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                   Full List

 

Composition

Shareholder name :        COUNTRY ROAD LIMITED

Address :                      658 Church Street

Richmond, VIC 3121

Australia

No. of shares :               27,500,002 Ordinary Shares

% of shares :                 100%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          WOOLWORTHS HOLDINGS LIMITED

Affiliation type :              Ultimate Holding Company

Address :                      Woolworths House

93 Longmarket Street

Cape Town, 8001

South Africa

 

Comments :                  Woolworths Holdings Limited, an investment holding company, provides retail and financial services in South Africa. The company also has operations in Africa, Australia, New Zealand, and the Middle East. Subsidiaries The company operates primarily through two subsidiaries, Woolworths (Proprietary) Limited (Woolworths) in South Africa and Country Road Limited (Country Road) in Australia and through a joint venture Woolworths Financial Services (Proprietary) Limited (Woolworths Financial Services). Woolworths Woolworths is a retail chain of stores operating under the Woolworths brand name throughout South Africa and through franchise operations in South Africa and selected African countries, as well as in the Middle East. Woolworths offers customers a selected range of clothing, food, and general merchandise. Woolworths has 250 corporate and 160 franchise stores throughout South Africa, Africa and the Middle East. Woolworths Financial Services Woolworths Financial Services is jointly operated with Absa Group Limited and provides customers with a credit offering to assist them to purchase merchandise in Woolworths stores. Country Road Country Road offers a select range of clothing and homeware through its own dedicated retail outlets and through concessions in large department stores in Australia and New Zealand. It offers a range of women’s and men’s clothing in South Africa through selected Woolworths stores. Country Road Limited has 67 retail stores and 82

concession retail outlets across Australia and New Zealand. History Woolworths Holdings Limited was founded in 1931.

 

Name :              WOOLWORTHS INTERNATIONAL (AUSTRALIA) PTY LIMITED

Affiliation type : Intermediate Holding Company

Address :          658 Church Street

Richmond, VIC 3121

Australia

Comments :      Woolworths International (Australia) Pty Limited through its subsidiary retails and

markets consumer electronic products. The company was founded in 2005 and is

based in Bella Vista, Australia. Woolworths International (Australia) Pty Limited

operates as a subsidiary of Woolworths Holdings Limited.

 

Name :              COUNTRY ROAD LIMITED

Affiliation type : Parent Company

Address :          658 Church Street

Richmond, VIC 3121

Australia

Comments :      Country Road Limited engages in the design and retail sale of apparel,

homewares, and related accessories in Australia, New Zealand, and South Africa.

It offers womenswear, menswear, kidswear, gift cards, gift wraps, and tailoring

services. Country Road Limited sells its products through 60 retail stores and 80

concession outlets under the Country Road and Trenery brand names, as well as

through an online store. The company was founded in 1974 and is based in

Richmond, Australia. Country Road Limited is a subsidiary of Woolworths

International (Australia) Pty Limited.

 

Name :              COUNTRY ROAD CLOTHING (N.Z.) LIMITED

Affiliation type : Subsidiary

Address :          164 Queen Street

Auckland Central, Auckland, 1010

New Zealand

 

Name :              COUNTRY ROAD PROPERTIES PTY. LTD.

Affiliation type : Sister Company

Address :          658 Church Street

Richmond, VIC 3121

Australia

 

Name :              COUNTRY ROAD VENTURES PTY LTD

Affiliation type : Sister Company

Address :          658 Church Street

Richmond, VIC 3121

Australia

 

Name :              COUNTRY ROAD INTERNATIONAL PTY. LTD.

Affiliation type : Sister Company

Address :          658 Church Street

Richmond, VIC 3121

Australia

 

Name :              WOOLWORTHS (PROPRIETARY) LIMITED

Affiliation type : Sister Company

Address :          Woolworths House

93 Longmarket Street

Cape Town, 8001

South Africa

 

Name :              WOOLWORTHS INTERNATIONAL (SA) (PROPRIETARY) LIMITED

Affiliation type : Sister Company

Address :          Woolworths House

93 Longmarket Street

Cape Town, 8001

South Africa

 

Name :              WOOLWORTHS DEVELOPMENTS (PROPRIETARY) LIMITED

Affiliation type : Sister Company

Address :          Woolworths House

93 Longmarket Street

Cape Town, 8001

South Africa

 

Related companies and corporateaffiliations comments : Other companies of the Woolworths Holdings Group should be considered affiliates of the Subject.

 

 

BANK & MORTGAGES

 

Bank Details

 

Name of bank :              National Australia Bank Limited

Address :                      Australia

Account details :            Current Account

Comments :                  It is generally not the policy of local banks to provide credit status information to

non related parties, however interested parties would be advised to consult first

with the Subject if banker's references are required.

 

Mortgages :                   Satisfied Charge Details:

ASIC Charge Number: 101770

Date Registered: 29-08-1979

Date Created: 04-07-1979

Chargees Name:

Name: INTERNATIONAL LEASING COMPANY (PTY) LTD

Name: ANGLO-AFRICAN SHIPPING COMPANY (U.K.) LTD

Name: CREDFIN (PTY) LTD

Name: T.I.I.C. (PROPRIETARY LTD

Name: DOMINION SHIPPERS LIMITED

Name: AFFILIATED EXPORTERS INCORPORATED

Name: TRADE & INDUSTRY ACCEPTANCE CORPORATION (AUSTRALIA)

PTY LTD

Name: INTERNATIONAL ACCEPTANCES (PROPRIETARY) LTD

Name: ANGLO AFRICAN SHIPPING CO 1936 PTY LTD

Name: ANGLO AFRICAN SHIPPING CO OF NEW YORK INCORPORATED

Name: ANGLO-AFRICAN FACTORS (PROPRIETARY LTD

Name: CREDFIN ACCEPTANCES (PROPRIETRY) LTD

Name: DAN PERKINS INTERNATIONAL LEASING (PROPRIETARY) LTD

Name: TIAC SECURITIES (PROPRIETARY) LTD

Name: COMBINED LEASING COMPANY (PROPRIETARY) LTD

Name: DAN PERKINS INSTALMENT SALES (PROPRIETARY) LTD

Name: GREEN BROTHERS LIMITD

Name: TRADE & INDUSTRY ACCEPTANCE CORPORATION LTD

Name: INTERNATIONAL SHIPPING COMPANY PTY.LIMITED

Name: FEDERATED SHIPPERS LTD

Name: FEDERATED MERCHANDISING CORPORATION LTD

Name: ELEPHANT TRADING COMPANY (RHODESIA) LTD

Name: ELEPHANT TRADING (SA) HOLDINGS LTD.

Name: LANDAU AND COETSEE (S.A) LIMITED

Name: EMPIRE STATE BUYING CORPORATION

Name: COMARKET AGENCIES LTD

Name: LANDAU & COETSEE (PVT) LTD

Name: AFFILIATED EXPORTERS (LONDON) LTD

ASIC Charge Number: 101910

Date Registered: 07-08-1980

Date Created: 24-07-1980

Chargees Name:

Name: DOMINION SHIPPERS LIMITED

Name: AFFILIATED EXPORTERS INCORPORATED

Name: TRADE & INDUSTRY ACCEPTANCE CORPORATION (AUSTRALIA)

PTY LTD

Name: COMMONWEALTH INTERNATIONAL SHIPPERS (U.K.) LIMITED

ASIC Charge Number: 101999

Date Registered: 28-09-1981

Date Created: 01-09-1981

Chargees Name: PERPETUAL TRUSTEES VICTORIA LIMITED

ASIC Charge Number: 820615

Date Registered: 10-09-2001

Charge type: Both Fixed & Floating

Date Created: 30-08-2001

Chargees Name: NATIONAL AUSTRALIA BANK LIMITED

Legal Fillings

Bankruptcy fillings : None reported.

Court judgements : None reported.

Tax liens : None reported.

Others : None reported.

 


FINANCIAL DATA

 

Description

Source of financial statement :    Public Record Sources

Financial statement date :          30/06/11

Type of accounts :                     Full audited

Currency :                                 Australia Dollar (AUD)

Exchange rate :                         1 USD = AUD 0.94 as of 19-03-2012

 

 

Summarized Financial Information

 

Consolidation type :                   Group Consolidated        Group Consolidated        Group Consolidated

Currency :                                 Australia Dollar (AUD)    Australia Dollar (AUD) South Africa, Rand (ZAR)

Denomination :                          (x1) One                        (x1) One                        (x1) One

Date of financial year end :          30/06/11                       30/06/10                       26/06/11

Length of accounts :                   12 months                     12 months                     12 months

Sale turnover / Income : 423,791,000                  381,219,000                  25,841,000,000

Gross profit :                             252,535,000                 216,430,000                  8,899,000,000

Operating profit :                        23,477,000                    18,056,000                   2,122,000,000

Profit before tax :                       22,690,000                    17,459,000                    2,306,000,000

Net income :                              18,218,000                    12,331,000                    1,647,000,000

Non current assets :                   75,683,000                   75,879,000                    4,115,000,000

Current assets :                         73,597,000                   53,315,000                    4,950,000,000

Inventories :                               48,085,000                    39,113,000                    1,892,000,000

Total assets :                            149,280,000                  129,194,000                  9,065,000,000

Current liabilities :                      51,035,000                    40,223,000                   3,512,000,000

Non current liabilities :                6,521,000                      4,179,000                      1,460,000,000

Total liabilities :                          57,556,000                    44,402,000                    4,972,000,000

Share equity :                            91,724,000                    84,792,000                    4,093,000,000

Reserve :                                   -5,087,000                     -196,000

Retained earning :                      22,724,000                    10,901,000

 

Comments :      The group’s consolidated financial information in AUD above relates to the

Subject’s Parent Company Country Road Limited and all its subsidiaries which

include the Subject.

The group’s consolidated financial information in ZAR above relates to the

Subject’s Ultimate Holding Company Woolworths Holdings Limited and all its

subsidiaries which include the Subject.

 

 

OPERATION DETAILS

 

Main activities :              The Subject is engaged in designing and retailing of women's clothing,

footwear & accessories; men's clothing, footwear & accessories; children's

clothing; homewares and related accessories.

Besides the Subject's retail outlets, it also sells its products online and

offers additional services such as gift cards, gift wraps, gift registry,

tailoring and delivery services.

The Subject is part of Country Road Limited which is an Australia-based

company engaged in the apparel and accessories retail industry. The

Company's principal activities are the designing and retailing of apparel

homewares and related accessories through its network of retail stores and

online store. During the fiscal year ended June 30, 2011, the Company

opened three new Country Road and seven new Trenery retail stores

across Australia and New Zealand, along with four new concession stores

in Myer, Canberra City, Australian Capital Territory. In addition, two new

concession stores were opened in Gauteng in South Africa. As of June 30,

2011, the Company had seven wholly owned subsidiaries, namely Country

Road Clothing Pty Ltd, Country Road Clothing (N.Z.) Ltd, Country Road

Properties Pty Ltd, Country Road Ventures Pty Ltd, Country Road Ltd,

Country Road International Pty Ltd and Country Road (Hong Kong) Ltd.

The Company's ultimate parent entity is Woolworths Holdings Limited.

Woolworths Holdings Limited is an investment holding company and one of

the top 100 companies listed on the Johannesburg Securities Exchange in

South Africa. Its core business focus is the provision of retail and financial

services to upper and middle income groups mainly in South Africa but also

in Africa, Australia, New Zealand and the Middle East. It operates

internationally through the following subsidiaries: Woolworths (Proprietary

Limited) and Country Road Limited. Woolworths (Proprietary) Limited - a

respected chain of over 330 retail stores (including more than 150

franchise stores), offering a range of quality clothing, food, homeware,

beauty and financial services under its own brand name in South Africa,

Africa and the Middle East.

 

Brand                            : Country Road

 

Purchases

 

Local :                          Yes

International :                 Contract manufacturing conducted mainly from Asian countries

 

Sales

Local :                          Yes

International :                 New Zealand

 

Property & Assets

 

Premises :                    The Subject operates from head office located at the verified heading

address consisting of administrative office and warehouse.

Branches : In addition, the Subject operates from 60 retail stores and 80 concession outlets located throughout Australia and New Zealand.

 

 


SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

 

Central bank :                                        Reserve Bank of Australia

Reserve of foreign exchange & gold :       US$ 43.879 billion

Gross domestic product - GDP :             US$ 1.448 trillion

GPP (Purchasing power parity) :             918.529 billion of International dollars

GDP per capita - current prices :             US$ 64,351

 

GDP - composition by sector :                agriculture: 4.0%

industry: 26%

services: 70%

 

Inflation :                                               2008: 4.4%

2009: 1.8%

2010: 2.8%

 

Unemployment rate :                              2008: 4.2%

2009: 5.6%

2010: 5.2%

Public debt

(General Government gross debt as

a % GDP)                                             : 2008: 11.6%

2009: 17.6%

2010: 22.3%

 

Government bond ratings :                      Standard & Poor's: AAA/Stable/A-1+

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly tradedshares       : US$1.258 trillion

 

Largest companies in the country :          Westpac Banking Group (Major Banks), BHP Billiton (Diversified Metals & Mining), Commonwealth Bank (Major Banks), National Australia Bank (Major Banks), ANZ Banking (Major Banks), Telstra (Telecommunications services), Wesfarmers (Food Retail)

 

Trade & Competitiveness Overview

 

Total exports :                           US$210.7 billion

 

Exports commodities :               coal, iron ore, gold, meat, wool, alumina, wheat

 

Total imports :                           US$187.2 billion

 

Imports commodities :                machinery and transport equipment, computers and office machines,

telecommunication equipment and parts, crude oil and petroleum products

 

Export - major partners :             Japan 18.9%, China 14.2%, South Korea 8%, US 6%, NZ 5.6%, India

5.5%, UK 4.2%

 

Import - major partners :             machinery and transport equipment, computers and office machines,

telecommunication equipment and parts, crude oil and petroleum products

 

FDI Inflows :                              2008: US$46,722 million

2009: US$22,572 million

2010: US$32,472 million

 

FDI Outflows :                            2008: US$32,819 million

2009: US$18,426 million

2010: US$26,431 million

 

Best countries for doing business : 10 out of 183 countries

 

Global competitiveness ranking : 20 (ranking by country on a basis of 142, the first is the best)

 

Country and Population Overview

 

Total population :                       22.23 million

Total area :                                7,692,024 km2

Capital :                                    Canberra

Currency :                                 Australian dollars (AUD)

Internet users as % of total

population:                                76.00%

 

 

PAYMENT HISTORY

 

Purchase Term

International : L/C, Telegraphic transfer, Credit up to 120 days

 

Sales Term

Local : Cash, Credit card

Trade Reference/ Payment

 

Behaviour

Comments : As local and international trade references were not supplied, the Subject's

payment track record history cannot be appropriately determined but based

on our research, payments are believed to be met without delay.

 

Investigation Note

Sources            : Interviews and material provided by the Subject

: Other official and local business sources


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.50.25

UK Pound

1

Rs.79.76

Euro

1

Rs.66.52

 

 

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.