MIRA INFORM REPORT

 

 

Report Date :

04.05.2012

 

IDENTIFICATION DETAILS

 

Name :

KESTREL COAL SALES PTY LIMITED

 

 

Registered Office :

123 Albert Street, Brisbane, Queensland 4000

 

 

Country :

Australia

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

29.11.1983

 

 

Com. Reg. No.:

010486307

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Export & distribution of coal produced from Kestrel Mine, Queensland.

 

 

No. of Employees :

15

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

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 – September 30, 2011

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

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 :              KESTREL COAL SALES PTY LIMITED

Business address :        123 Albert Street

Town :                           Brisbane

Province :                      Queensland

Zip/postal code :            4000

Country :                       Australia

Tel :                              +61 7 36253000

Fax :                             +61 7 36253001

Website :                      www.riotintocoalaustralia.com.au

Registered address :      123 Albert Street

Town :                           Brisbane

Province :                      Queensland

Zip/postal code :            4000

Country :                       Australia

Postal address :            GPO Box 391

Town :                           Brisbane

Province :                      Queensland

Zip/postal code :            4001

Country :                       Australia

 

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :        29/11/1983

Legal form :                               Australian Proprietary Company

Chief executive :                        Anthony David Miller

Issued & paid up capital :           AUD 2

Sales turnover :                          USD 60,537,000,000 (Group-consolidated 12 months, 31/12/2011)

Net income :                              USD 4,365,000,000 (Group-consolidated 12 months, 31/12/2011)

Total fixed assets :                     USD 119,545,000,000 (Group-consolidated 12 months, 31/12/2011)

Line of business :                       Export & distribution of coal produced from Kestrel Mine, Queensland.

Staff employed :                         15 employees (Subject); 67,930 (Rio Tinto Group)

 

 

Company Analysis

 

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is steady

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 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 :                                              29/11/1983

Legal form :                                                       Australian Proprietary Company

Registration no Australian Company Number:       010486307

Registered authority :                                         Australian Securities and Investments Commission

Fiscal/ Tax no :                                                  Australian Business Number: 70010486307

Registry status :                                                Live/Active

Previous name :                                                 GORDONSTONE COAL SALES PTY. LTD.

DENHAM COAL SALES PTY. LTD. (initial)

Change of legal form :                                         None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :                                      Anthony David Miller

Designation :                             Director

Name :                                      Kieran Gary Olsen

Designation :                             Director

Name :                                      Matthew William Halliday

Designation :                             Director

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                                      Anthony David Miller

Designation :                             Director

Appointment date :                     18/01/08

Address :                                  18 McIlwraith Street

Auchenflower, QLD 4066

Australia

Biography :                                Born on 20-09-1955 in Corowa, New South Wales, Australia.

Name :                                      Kieran Gary Olsen

Designation :                             Director

Appointment date :                     20/09/11

Address :                                  2 Coleman Street

Graceville, QLD 4075

Australia

Biography :                                Born on 12-07-1973 in Penang, Malaysia.

Name :                                      Matthew William Halliday

Designation :                             Director

Appointment date :                     01/02/10

Address :                                  29 Upper Lancaster Road

Ascot, QLD 4007

Australia

Biography :                                Born on 23-07-1976 in Fremantle, Western Australia, Australia.

Name :                                      Simon John Ellinor

Designation :                             Alternate Director

Appointment date :                     22/11/11

Address :                                  34 Hannah Circuit

Manly West, QLD 4179

Australia

Biography :                                Born on 07-02-1973 in Oxford, United Kingdom.

Name :                                      Paul Matthew Borg

Designation :                             Company Secretary

Appointment date :                     01/03/09

Address :                                  109 Tinchborne Street

Chandler, QLD 4155

Australia

Biography :                                Born on 26-11-1969 in Brisbane, Queensland, Australia.

Name :                                      Claire Elizabeth Fidler

Designation :                             Company Secretary

Appointment date :                     29/06/11

Address :                                  51 Stevenson Street

Paddington, QLD 4064

Australia

Biography :                                Born on 21-03-1977 in Brisbane, Queensland, Australia.

Staff employed :                         15 employees (Subject); 67,930 (Rio Tinto Group)

 

 

SHARE CAPITAL

 

Composition

Authorized Capital :                    AUD 2

No of shares :                            2 Ordinary Shares

Share par value :                        AUD 1

Issued capital :                          AUD 2

Paid up capital :                         AUD 2

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                   Full List

Composition

Shareholder name :        QUEENSLAND COAL PTY. LIMITED

Address :                      123 Albert Street

Brisbane, QLD 4000

Australia

No. of shares :               2 Ordinary Shares

% of shares :                 100%

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :              Jointly held by RIO TINTO LIMITED / RIO TINTO PLC

Affiliation type : Ultimate Holding Company

Address :          Level 33 120 Collins Street

Melbourne, VIC 3000

Australia

2 Eastbourne Terrace

London W2 6LG

United Kingdom

Comments :      The company is listed on the Australian Stock Exchange and London Stock Exchange.

RIO TINTO LIMITED / RIO TINTO PLC together is engaged in minerals exploration, development, production and processing. The Company’s product groups include aluminum, copper, diamonds and minerals, energy, and iron ore. Its major products are aluminum, copper, diamonds, coal, iron ore, uranium, molybdenum, gold, borates, titanium dioxide, salt and talc. The Company’s businesses include open pit and underground mines, mills, refineries and smelters, as well as a number of research and service facilities.

 

Name :              QUEENSLAND COAL PTY. LIMITED

Affiliation type : Parent Company

Address :          123 Albert Street

Brisbane, QLD 4000

Australia

Comments :      Queensland Coal Pty. Limited engages in coal mining and exploration. The company was incorporated in 1909 and is based in Brisbane, Australia.

Queensland Coal Pty. Limited operates as a subsidiary of Rio Tinto Group.

 

Name :              KESTREL COAL PTY LIMITED

Affiliation type : Sister Company

Address :          123 Albert Street

Brisbane, QLD 4000

Australia

Comments :      Operator of Kestrel Mines.

 

Name :              ARGYLE DIAMONDS LIMITED

Affiliation type : Sister Company

Address :          Australia

Comments :      Mining and processing of diamonds.

 

Name :              COAL & ALLIED INDUSTRIES LIMITED

Affiliation type : Sister Company

Address :          Australia

Comments :      Coal mining.

 

Name :              DAMPIER SALT LIMITED

Affiliation type : Sister Company

Address :          Australia

Comments :      Salt production.

 

Name :              RIO TINTO COAL AUSTRALIA PTY LIMITED

Affiliation type : Sister Company

Address :          Australia

Comments :      Rio Tinto Coal Australia manages the operation on behalf of the joint venture

partners, Queensland Coal Pty Limited (82 per cent), Nippon Steel Australia Pty

Ltd (8 per cent), Marubeni Coal Pty Ltd (6.67 per cent) and Sumisho Coal

Development Pty Ltd (3.33 per cent).

 

Name :              HAIL CREEK COAL PTY LTD

Affiliation type : Sister Company

Address :          Australia

Comments :      Coal mining.

 

Name :              RIO TINTO ALUMINIUM (HOLDINGS) LIMITED

Affiliation type : Sister Company

Address :          Australia

Comments :      Bauxite mining; alumina production; primary aluminium smelting.

 

Name :              HAMERSLEY IRON PTY LIMITED

Affiliation type : Sister Company

Address :          Australia

Comments :      Iron ore mining.

Related companies and corporate

affiliations comments

: Other companies of the Rio Tinto 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 :                   None reported.

Legal Fillings

Bankruptcy fillings :        None reported.

Court judgements :         None reported.

Tax liens :                     None reported.

Others :                        None reported.

 

 

FINANCIAL DATA


 

 

Description

Source of financial statement :    Commercial Registry Filings

Financial statement date :          31/12/11

Type of accounts :                     Full audited

Currency :                                 US Dollar (USD)

Consolidation type :                   Group Consolidated        Group Consolidated

Currency :                                 US Dollar (USD)             US Dollar (USD)

Denomination :                          (x1) One                        (x1) One

Date of financial year end :          31/12/11                        31/12/10

Length of accounts :                   12 months                     12 months

Sale turnover / Income : 60,537,000,000 55,171,000,000

Operating profit :                        13,940,000,000 19,608,000,000

Profit before tax :                       13,214,000,000 20,491,000,000

Net income :                              4,365,000,000                16,492,000,000

Non current assets :                   97,559,000,000 89,608,000,000

Current assets :                         21,986,000,000 23,165,000,000

Inventories :                               5,307,000,000                4,756,000,000

Total assets :                            119,545,000,000            112,773,000,000

Current liabilities :                      14,966,000,000 12,876,000,000

Non current liabilities :                45,371,000,000 35,385,000,000

Total liabilities :                          60,337,000,000 48,261,000,000

Share equity :                            59,208,000,000 64,512,000,000

Retained earning :                      27,784,000,000 32,499,000,000

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

jointly Ultimate Holding Company TINTO LIMITED / RIO TINTO PLC and all its

subsidiaries which include the Subject.

 

 

OPERATION DETAILS

 

Main activities : The Subject is engaged in export & distribution of coal produced from

Kestrel Mine, Queensland.

Kestrel Mine, located 40 km north east of Emerald in central Queensland is

an underground operation, supplying world markets with around 4 million

tonnes of coking and thermal coal per annum.

Previously known as Gordonstone Mine, the operation was opened by the

Atlantic Richfield Company (ARCO) in 1992. Rio Tinto purchased ARCO's

80 per cent interest in February 1999 and the operation was reopened

under the employee-voted name Kestrel Mine, in honour of the small falcon

bird that can regularly be seen flying over the area.

Kestrel Mine is operated by Kestrel Coal Pty Ltd "Kestrel Coal".

Kestrel Coal manages the Kestrel Mine on behalf of the Kestrel Joint

Venture (“Kestrel JV”) which participants are:

- Queensland Coal Pty Limited (“Queensland Coal”) with a 80% interest in

Kestrel Coal; and Mitsui Kestrel Coal Investment (“Mitsui Kestrel”) with a

20% interest in Kestrel Coal.

Queensland Coal is a wholly owned subsidiary of Rio Tinto Plc which

effectively manages Kestrel Mine as part of its operating division Rio Tinto

Coal Australia (“RTCA”).

Kestrel Mine had marketable reserves of 122 million tonnes as at 31

December 2011.

The Kestrel Mine extension was announced in 2007 is currently under

construction. The extension will allow the mine to access remaining

resources more efficiently and will extend the life of the mine by 20 years

while increasing capacity to up to 5.7 million tonnes per annum.

 

Product & services : Coking Coal

Thermal Coal

 

Sales

International : Japan, Taiwan, Korea, India, Europe, and Brazil

 

Key events : 24 April 2012

Rio Tinto starts exporting coal from Mozambique in May

The first lots of coal mined by Anglo-Australian group Rio Tinto in Tete,

Mozambique, are due to start being exported to the Asian market,

specifically India, in mid May, said the managing director of Rio Tinto Coal

Mozambique.

Eric Finlayson said that the trains and coal trucks acquired by the company

to carry the coal mined in Moatize to the port of Beira along the Sena

page 13 / 20

Railroad had been tested and approved by state rail and port manager

Portos e Caminhos de Ferro de Moçambique.

According to Mozambican daily newspaper Notícias, Finlayson also noted

the importance of finishing building work at the provisional coal terminal at

the rail and port complex in Beira, as export capacity is currently limited by

development of facilities to transport the product.

The managing director of Rio Tinto Coal Mozambique added that the Rio

Tinto group is setting itself up in Mozambique to become the largest

exporter of coal from the Moatize basin, a region which has large coal

reserves.

Rio Tinto is one of the world’s largest mining companies and operates in

40 countries with around 77,000 workers. Each year it exports 230 million

tons of iron ore from Australia and also sells aluminium, copper, diamonds

and other minerals.

Mar 2, 2012

Mozambique blocks Rio Tinto coal barging

MAPUTOMozambique's government has refused to let mining giant Rio

Tinto use the Zambezi River to transport coal to the Indian Ocean for

export, the deputy mining minister said on Friday.

The southern African country's environment ministry worried the operation

might harm the ecosystem, Deputy Minister Abdul Razak told AFP.

"For now, according to the information passed on by Micoa (the

environment ministry), it is not possible to use the river to export coal," said

Razak.

"It is because of the ecosystem. More studies need to be done."

Environmental groups had raised concern about using the river for barge

transportation.

The Zambezi flows downward from the Cahora Bassa dam and into the

ocean through the Zambezi Delta wetland system, rich with wildlife and

birds including some endangered species like the wattled crane.

Infrastructure is the biggest challenge in exploiting the country's massive

coal reserves, which have gone largely untapped since independence from

Portugal in 1975 due to a civil war that lasted until 1992.

Razak said the Sena railway line to Beira in the centre of the country and

the Nacala line in the north were the preferred export routes for coal, which

is tucked into the northwestern province of Tete.

But he acknowledged the railroads would not be enough once the mines hit

full capacity.

"For now the lines are sufficient for initial coal exports, but we are working

with companies eventually to find supplementary means," he said.

Brazilian miner Vale opened a coal mine last year, and has rights to the

bulk of the Sena line's capacity. It also owns the controlling share in the

Nacala line. Coal exports are expected to rise 22 percent this year to

around $2.3 billion (1.7 billion euros).

February 27, 2012

Mitsui Gets $259 Million Loan for Rio-led Kestrel Coal Mine

Mitsui & Co, Japan’s second-largest commodity supplier and trader,

borrowed $259 million from Japan Bank for International Cooperation to

help develop the Kestrel coal mine in Australia, a joint venture with Rio

Tinto Group.

The expansion will boost capacity at the mine by 63 percent to 6.5 million

metric tons a year, the Tokyo-based bank said today in a statement.

Mitsui, which owns 20 percent of the Kestrel venture, has agreed to provide

A$415 million ($444 million) of the total spending on the extension. The

expansion may cost A$2.1 billion, Mitsui said Oct. 14

Mitsui forecast its attributable coal output may slide 4.5 percent to 8.5

million tons in the year ending March 31, according to the company’s Feb.

2 presentation.

6 January 2011

Rio Tinto bringing Queensland Kestrel coal mine back to production

Perth (Platts)--6Jan2011/821 am EST/1321 GMT

Rio Tinto Coal Australia said Thursday work had started on bringing its

Kestrel underground coking and thermal coal mine in Queensland back into

production following extensive flooding in the Australian state.

The Kestrel coal mine is 40 km (24.8 miles) east of the town of Emerald in

the southern part of the Bowen Basin coalfield at the bottom of the

Goonyella coal supply chain and produces 4.2 million mt/year of coking

and thermal coal, according to Rio Tinto's website.

"I can confirm that yesterday [Wednesday] we had some road access

restored to the Kestrel mine, so we have begun to bring crews in to focus

on recommencing operations and bringing the mine back into production,"

said a RTCA spokeswoman by email.

The RTCA spokeswoman went on to state that its December 29

declaration of force majeure to customers of its four Queensland coal

mines, Blair Athol, Clermont, Hail Creek and Kestrel remained in force.

"In the meantime, the force majeure declaration on sales contracts for Rio

Tinto Coal Australia's four mines will continue until normal production and

railing rates are restored," she said.

17 December 2007

Rio Tinto approves US$991 million Kestrel Mine extension

Rio Tinto has announced a significant new investment in its coal production

capacity in the Bowen Basin region of Queensland, Australia.

The US$991 million investment in the extension of the Kestrel Mine

(nominal terms, 100 per cent basis, Rio Tinto share US$793 million) will

allow Rio Tinto to capture more of the growing demand for export coal.

Higher quality metallurgical coal is vital to boost steel production needed to

satisfy fast growing demand driven by rapid urbanisation and rising

incomes in Asian markets. The extension is subject to government

approvals.

Preston Chiaro, chief executive Energy, said the Kestrel Mine extension

will extend the life of the mine and increase production to an average of 5.7

million tonnes of coal a year until 2031.

"This represents a further 20 year commitment to the Bowen Basin and is a

strong vote of confidence in the Asian coal market. The extension will

enable us to tap into 112 million tonnes (1) of high quality hard and

semi-hard coking coal and thermal coal for export."

Mr Chiaro said the Kestrel Mine extension will incorporate sustainable

development in its design to improve energy efficiency and reduce water

usage. It is expected to create up to 250 jobs during construction and the

current operating workforce of 320 will transition to the new extension.

Rio Tinto's Australian-based managing director Strategy, Doug Ritchie,

said, "This extension is one of a number of recent investment decisions

aimed at fulfilling Rio Tinto's unrivalled strategy and growth plans. It comes

hard on the heels of the 26 November announcements to Rio Tinto's

investors on the key value drivers underpinning Rio Tinto's growth

strategy."

"Our primary objective is to create further value for our shareholders and

deliver very substantial returns in the future. We are entering into an

unprecedented period of demand growth and Rio Tinto is well paced to

meet this demand," he said.

Investments approved in 2007 include the underground development of the

Diavik Diamond Mine in Canada (US$563 million) bringing total investment

in the underground mine to US$787 million, the new Mesa A/Warramboo

and Brockman 4 mines in Western Australia (US$2.42 billion), the Rio Tinto

Alcan acquisition completed in November 2007 (US$38.1 billion), the Hope

Downs iron ore expansion to 30 million tonnes per year (US$350 million),

the Yarwun alumina refinery expansion to 3.4 million tonnes per year

(US$1.8 billion) and the Cape Lambert port expansion to 80 million tonnes

per year (US$860 million).

(1) Please refer to previously announced ore reserves in the Rio Tinto

2006 Annual report and financial statements

Notes to editors:

Kestrel Mine Extension

The Kestrel Mine, located 51 kilometres north-east of the central

Queensland town of Emerald, currently produces about four million tonnes

of high volatile coking and thermal coal per year for the export market,

using the longwall mining method.

First longwall coal from the Kestrel Mine extension is expected in 2012,

when the existing mine starts ramping down. The extension will require a

new automated run of mine stockpile system and a seven kilometre

overland conveyor to the existing coal handling and preparation plant.

A 375 metre wide longwall will replace the existing 250 metre wide

longwall. This new longwall will achieve a substantially lower unit cost for

mining and increased productivity. A new workshop, warehouse, storage

facilities and administration building will be constructed, however many of

the existing Kestrel Mine facilities will continue to be used.

Property & Assets

Premises : The Subject operates from premises located at the verified heading

address consisting of administrative office.

Branches : None reported.

 

 

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%

2011: 3.0%

Unemployment rate :                              2008: 4.2%

2009: 5.6%

2010: 5.2%

2011: 5.0%

Public debt

(General Government gross debt as

a % GDP)

: 2008: 11.6%

2009: 17.6%

2010: 22.3%

2011: 24.1%

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

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded

shares

: 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 :             China 15.5%, US 12.8%, Japan 9.6%, Singapore 5.6%, Germany 5.2%,

UK 4.3%, Thailand 4.2%

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

 

Sales Term

International : L/C, D/A, D/P, Bank transfer, Credit up to 120 days

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.53.23

UK Pound

1

Rs.86.14

Euro

1

Rs.69.98

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.