MIRA INFORM REPORT
|
Report Date : |
31.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
EMERSON
ELECTRIC [ |
|
|
|
|
Registered Office : |
24 Moo 4, Eastern Seaboard
Industrial Estate, T.
Pluakdaeng, A. Pluakdaeng, Rayong 21140 |
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Country : |
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Financials (as on) : |
30.09.2011 |
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|
|
|
Date of Incorporation : |
23.12.1991 |
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Com. Reg. No.: |
0105534122021 |
|
|
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|
Legal Form : |
Private Limited Company |
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|
|
|
Line of Business : |
Manufacturer, distributor &
exporter of compressors |
|
|
|
|
No. of Employees
: |
600 |
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 |
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|
|
|
Payment
Behaviour : |
No Complaints |
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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 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Thailand |
b1 |
b1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
EMERSON ELECTRIC [THAILAND] LIMITED
SUMMARY
BUSINESS
ADDRESS : 24
MOO 4, EASTERN
SEABOARD INDUSTRIAL ESTATE,
T. PLUAKDAENG,
A. PLUAKDAENG,
RAYONG 21140,
THAILAND
TELEPHONE : [66] 38
957-000
FAX :
[66] 38
957-131
E-MAIL
ADDRESS : rachane.m@emerson.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1991
REGISTRATION
NO. : 0105534122021 [Former : 12200/2534]
CAPITAL REGISTERED : BHT. 597,500,000
CAPITAL PAID-UP : BHT.
597,500,000
SHAREHOLDER’
PROPORTION : FOREIGN
: 100%
FISCAL YEAR CLOSING DATE : SEPTEMBER 30
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
THOMAS ROBERT ZOFKIE,
AMERICAN
VICE PRESIDENT & MANAGING DIRECTOR
NO.
OF STAFF : 600
LINES
OF BUSINESS : COMPRESSORS
MANUFACTURER, DISTRIBUTOR
& EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The subject was
established on December
23, 1991 as
a private limited
company under the
registered name Emerson
[Thailand] Ltd., by EMR
Holdings Inc., U.S.A.,
in order to
produce and export
of compressors for
air-conditioning and refrigerators. On February 25, 1992 the subject’s name was
changed to EMERSON ELECTRIC [THAILAND]
LIMITED. It currently
employs approximate 600 staff.
Subject is a
wholly owned subsidiary
of Emerson DHC
B.V., Netherlands, which
is a member of Emerson Electric,
the U.S. based and
world’s leading supplier
of compressors and condensing units forcommercial and
residential air-conditioning and commercial
refrigerate equipment.
The subject was
granted an investment
promotional privilege from
Board of Investment [BOI]
for its production.
It achieved the ISO:14001 certification from Underwriters Laboratories
Inc., for the environment
management on April
17, 2002.
Emerson Group’s Asia
regional has its
headquarters in Hong Kong
and offices in
Republic of China,
India, Japan, Korea,
Indonesia, Malaysia and
Singapore.
The subject’s registered
address is 24
Moo 4, Eastern Seaboard
Industrial Estate,
T. Pluakdaeng, A. Pluakdaeng, Rayong
21140, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nativity |
Age |
|
|
|
|
|
|
Mr. Thomas Robert Zofkie |
|
American |
56 |
|
Mr. Christopher Lee
Tucker |
|
American |
41 |
|
Ms. Orawan Prathepwattanavit |
|
Thai |
47 |
|
Mrs. Zara Yang Bosko |
|
American |
54 |
|
Mrs. Vanida Khomna |
|
Thai |
47 |
|
Mr. Donald Scott Barber |
|
American |
51 |
|
Mr. Ram Rama Krisnan |
|
American |
41 |
|
Mr. Prakarn Teerapratuengkul |
|
Thai |
48 |
AUTHORIZED PERSON
Two of the above
directors can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Thomas Robert
Zofkie is the
Vice President and
Managing Director.
He is American
nationality with the
age of 56
years old.
Ms. Orawan Prathepwattanavit is
the Financial Controller.
She is Thai
nationality with the
age of 47
years old.
Mr. Somyoth Miengchom
is the Manufacturing
Engineering Manager [Compressor].
He is Thai
nationality.
Mrs. Vanida Khomna
is the Human
Resources Manager.
She is Thai
nationality with the age
of 47 years
old.
Mr. Seksan Komolvilas
is the Quality
Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
of wide range
of compressors, including
hermetic compressor, industrial
compressor, scroll compressor,
semi-hermetic compressor,
and accessories for
air-conditioning and refrigerated
industries.
Types of products
are as follows:
Air Conditioning System :
-
ZR Scroll
[1.5-6.75 HP]
-
ZR
Scroll [7-15 HP]
-
Tandem
Scroll Unit [8-30 HP]
Refrigerated
System:
-
Refrigeration
Scroll [2-15 HP]
MAJOR BRANDS
“COPELAND”, “EMERSON”
PRODUCTION
500,000 sets per
annum
PURCHASE
Most of raw
materials and spare
parts are purchased
from local suppliers,
and the rest is imported from United States of America,
Germany, Taiwan, Singapore, Republic of China
and Japan.
MAJOR SUPPLIERS
- U.M.C. Diecasting Co., Ltd. :
Thailand
- Emerson Electric Company :
United States of
America
- The Max Value
Technology Co., Ltd. : Thailand
- S.K. Polymer
Co., Ltd. :
Thailand
DISTRIBUTION
80% of its products
is exported to
Emerson Electric Co.,
in U.S.A., and
the remaining 20%
is sold locally
to refrigerator and
air conditioner manufacturers, such
as “SHARP”, “TOSHIBA”, “PANASONIC”,
“SANYO”, “MITSUBISHI”, and
other brands.
MAJOR CUSTOMERS
- Emerson Electric Co.,
Ltd. : United
States of America
- Sanyo Universal Electric
Co., Ltd. : Thailand
- Mahajak Air Conditioner
Co., Ltd. : Thailand
- Sang Chai Equipment
Co., Ltd. : Thailand
- Thai Nair Equipment
Supply Co., Ltd.:
Thailand
PARENT COMPANY
Emerson DHC B.V.
Address : Teleportboulevard 140,
1043 EJ
Amsterdam, The Netherlands
LITIGATION
Bankruptcy and
Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the
subject found at
Legal Execution Department
for the past
five years.
Others
There are no
legal suits filed
against the subject
for the past
two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credit term of
30-60 days.
Imports are by
L/C at sight
or T/T on
negotiated term.
Exports are against
L/C at sight
or T/T on
negotiated term.
BANKING
Kasikornbank Public Co., Ltd.
[Head Office :
1 Kasikorn Lane,
Rajburana Rd., Rajburana,
Bangkok 10140]
[Rayong Branch : 091 Sukhumvit
Rd., Thapradu, Muang,
Rayong Province]
Citibank, NA.
[Bangkok Office : 82
North Sathorn Rd.,
Bangrak, Bangkok 10500]
EMPLOYMENT
The subject employs
approximately 600 staff
[office staff and
factory workers].
LOCATION DETAILS
The premise is
rented for administrative office,
factory I and warehouse
at the heading
address on 150,000
square meters of area.
Premise is located
in industrial area.
Factory II is
located at 500
Moo 7, T. Thatoom,
A. Srimahaphote, Prachinburi 25140.
Tel. 37 629-812,
Fax. 37 481-080.
Branch Office [Sales]:
34th Floor, Nation
Tower, 1858/133 Bangna-Trad
Rd., Bangna, Bangkok
10260.
Tel : [66] 2716-4700,
Fax : [66] 2751-4240-1.
REMARK
MAXIMUM CREDIT SHOULD
BE GRANTED AT
US$ 50,000,000.
COMMENT
The subject is one of the leading
manufacturers and exporters of compressor for cooling systems. A
recipient of continuous compressor technology innovation, has enabled its
manufacturing to produce wide range
of world-standard compressors for diverse
needs of its
global customers.
The subject is one of the major exporters of technological advanced
scroll air-conditioning compressors to world market. With its high production
efficiency has resulted in improved competitiveness and
customer satisfaction for both
the local and
international markets.
Its business has
significantly grown and continued to keep abreast
of customers needs to
maintain its leading
position in the industry.
Subject maintains a
solid business.
FINANCIAL INFORMATION
The capital was
registered at Bht.
2,500,000 divided into 100,000 shares of
Bht. 25 each.
The capital was
increased later as
followings:
Bht. 175,000,000
on February 14,
1996
Bht. 177,500,000
on March 26,
1996
Bht. 597,500,000
on December 22,
1999
The latest registered
capital was increased
to Bht. 597,500,000 divided
into 23,900,000 shares
of Bht. 25
each with fully
paid.
THE SHAREHOLDERS LISTED
WERE : [as
at January 27,
2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Emerson DHC B.V. Nationality: Dutch Address : Teleport
Boulevard 140, 1043 EJ
Amsterdam, The Netherlands |
23,899,994 |
100.00 |
|
Emersub 11 LLC Nationality: American Address : 8000 West
Florissant Avenue, St. Louis,
Missouri, U.S.A. |
1 |
- |
|
Emersub 12 LLC Nationality: American Address : 8000 West
Florissant Avenue, St. Louis,
Missouri, U.S.A |
1 |
- |
|
Emersub 10 LLC Nationality: American Address : 8000
West Florissant Avenue,
St. Louis,
Missouri, U.S.A |
1 |
- |
|
Emersub 7 LLC Nationality: American Address : 8000 West
Florissant Avenue, St. Louis,
Missouri, U.S.A |
1 |
- |
|
Emersub 9 LLC Nationality: American Address : 8000 West
Florissant Avenue, St. Louis,
Missouri, U.S.A |
1 |
- |
|
Emersub 8 LLC Nationality: American Address : 8000 West
Florissant Avenue, St. Louis,
Missouri, U.S.A |
1 |
- |
Total Shareholders : 7
Share Structure [as
at January 27,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
American |
6 |
6 |
- |
|
Dutch |
1 |
23,988,994 |
100.00 |
|
Total |
7 |
23,900,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Ranchapawee Daengnoi No.
9013
BALANCE SHEET [BAHT]
The
latest financial figures
published for September
30, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash in Hand
& at Bank |
568,637,816 |
405,161,018 |
|
Trade Accounts Receivable |
1,176,181,419 |
1,129,576,505 |
|
Other Receivable - Related
Company |
319,953,498 |
58,555,421 |
|
Inventories |
503,543,692 |
474,906,051 |
|
Assets available for Sale |
- |
308,385,451 |
|
Other Current Assets
|
76,947,006 |
60,910,074 |
|
|
|
|
|
Total Current Assets
|
2,645,263,431 |
2,437,494,520 |
|
Fixed Assets |
1,394,200,062 |
1,350,622,962 |
|
Other Assets |
1,203,775 |
2,631,348 |
|
Total Assets |
4,040,667,268 |
3,790,748,830 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts Payable |
1,277,204,382 |
1,099,834,707 |
|
Other Payable -
Related Company |
249,262,381 |
251,607,599 |
|
Accrued Income Tax |
261,103,213 |
141,085,102 |
|
Discount after Accrued
Expenses |
132,707,560 |
84,248,247 |
|
Reserve for Goods
Warranty |
25,633,440 |
26,853,096 |
|
Other Current Liabilities |
254,665,085 |
190,244,625 |
|
|
|
|
|
Total Current Liabilities |
2,200,576,061 |
1,793,873,376 |
|
Total Liabilities |
2,200,576,061 |
1,793,873,376 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 25
par value authorized, issued
and fully paid share
capital 23,900,000 shares |
597,500,000 |
597,500,000 |
|
|
|
|
|
Capital Paid |
597,500,000 |
597,500,000 |
|
Retained Earning Appropriated for Statutory Reserve |
59,750,000 |
59,750,000 |
|
Unappropriated |
1,182,841,207 |
1,339,625,454 |
|
Total Shareholders' Equity |
1,840,091,207 |
1,996,875,454 |
|
Total Liabilities & Shareholders' Equity |
4,040,667,268 |
3,790,748,830 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
9,508,297,396 |
8,857,751,615 |
|
Gain on Exchange Rate |
35,017,209 |
- |
|
Other Income |
36,941,300 |
31,012,278 |
|
Total Revenues |
9,580,255,905 |
8,888,763,893 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
6,612,267,087 |
5,870,736,004 |
|
Selling Expenses |
503,622,330 |
447,765,742 |
|
Administrative Expenses |
148,089,328 |
121,833,826 |
|
Loss on Exchange
Rate |
- |
148,136,304 |
|
Total Expenses |
7,263,978,745 |
6,588,471,876 |
|
|
|
|
|
Profit / [Loss] before Income
Tax |
2,316,277,160 |
2,300,292,017 |
|
Income Tax |
[495,061,407] |
[246,074,325] |
|
|
|
|
|
Net Profit / [Loss] |
1,821,215,753 |
2,054,217,692 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.20 |
1.36 |
|
QUICK RATIO |
TIMES |
0.94 |
0.89 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
6.82 |
6.56 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.35 |
2.34 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
27.80 |
29.53 |
|
INVENTORY TURNOVER |
TIMES |
13.13 |
12.36 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
45.15 |
46.55 |
|
RECEIVABLES TURNOVER |
TIMES |
8.08 |
7.84 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
70.50 |
68.38 |
|
CASH CONVERSION CYCLE |
DAYS |
2.44 |
7.69 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
69.54 |
66.28 |
|
SELLING & ADMINISTRATION |
% |
6.85 |
6.43 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
31.21 |
34.07 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
24.36 |
25.97 |
|
NET PROFIT MARGIN |
% |
19.15 |
23.19 |
|
RETURN ON EQUITY |
% |
98.97 |
102.87 |
|
RETURN ON ASSET |
% |
45.07 |
54.19 |
|
EARNING PER SHARE |
BAHT |
76.20 |
85.95 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.54 |
0.47 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.20 |
0.90 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
7.34 |
|
|
OPERATING PROFIT |
% |
0.69 |
|
|
NET PROFIT |
% |
(11.34) |
|
|
FIXED ASSETS |
% |
3.23 |
|
|
TOTAL ASSETS |
% |
6.59 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
31.21 |
Impressive |
Industrial
Average |
10.26 |
|
Net Profit Margin |
19.15 |
Impressive |
Industrial
Average |
3.10 |
|
Return on Assets |
45.07 |
Impressive |
Industrial
Average |
8.27 |
|
Return on Equity |
98.97 |
Impressive |
Industrial
Average |
18.13 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from revenues after accounting for the
cost of goods sold. Gross profit margin serves as the source for paying
additional expenses and future savings. The
company’s figure is 31.21%. When
compared with the industry average, the ratio of the company was higher, this
indicated that company was more profitable than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company’s figure is 19.15% compared with those of its average
competitors in the same industry, indicated that business was an efficient
operator in a dominant position within
its industry.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. Return on Assets ratio is
45.07%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profit in a dominant position within its industry.
Return on Equity indicates how profitable a company is by comparing its
net income to its average shareholders' equity, ROE measures how much the
shareholders earned for their investment in the company. Return on Equity ratio
is 98.97%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profit in a dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY RATIO
|
Current Ratio |
1.20 |
Acceptable |
Industrial
Average |
1.70 |
|
Quick Ratio |
0.94 |
|
|
|
|
Cash Conversion Cycle |
2.44 |
|
|
|
The Current Ratio is to ascertain whether a company's short-term assets are
readily available to pay off its short-term liabilities. The company's figure
is 1.2 times in 2011, decreased from 1.36 times, then it is generally
considered to have good short-term financial strength. When compared with the
industry average, the ratio of the company was lower.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 0.94 times in 2011,
increased from 0.89 times, by excluding inventory, the company may have
problems meeting current liabilities.
The Cash Conversion Cycle measures the number of days a company's cash
is tied up in the production and sales process of its operations and the benefit
from payment terms from its creditors. It meant the company could survive when
no cash inflow was received from sale for 3 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.54 |
Acceptable |
Industrial
Average |
0.46 |
|
Debt to Equity Ratio |
1.20 |
Risky |
Industrial
Average |
0.94 |
|
Times Interest Earned |
- |
|
Industrial
Average |
11.69 |
Debt to Equity Ratio a measurement of how much suppliers, lenders,
creditors and obligors have committed to the company versus what the
shareholders have committed. A lower the percentage means that the company is
using less leverage and has a stronger equity position.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.54 greater than 0.5, most of the
company's assets are financed through debt.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
6.82 |
Acceptable |
Industrial
Average |
10.38 |
|
Total Assets Turnover |
2.35 |
Satisfactory |
Industrial
Average |
2.76 |
|
Inventory Conversion Period |
27.80 |
|
|
|
|
Inventory Turnover |
13.13 |
Impressive |
Industrial
Average |
9.62 |
|
Receivables Conversion Period |
45.15 |
|
|
|
|
Receivables Turnover |
8.08 |
Impressive |
Industrial
Average |
6.60 |
|
Payables Conversion Period |
70.50 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.16 |
|
UK Pound |
1 |
Rs.81.72 |
|
Euro |
1 |
Rs.68.34 |
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.