MIRA INFORM REPORT

 

 

Report Date :

18.10.2012

 

IDENTIFICATION DETAILS

 

Correct Name :

VEDAN VIETNAM ENTERPRISE CORPORATION LIMITED 

 

 

Registered Office :

National Road 51 - 1A Hamlet Phuoc Thai Commune, Long Thanh District, Dong Nai Province

 

 

Country :

Vietnam

 

 

Financials (as on) :

31.12.2010

 

 

Year of Establishment :

1991

 

 

Legal Form :

Foreign Invested Company

 

 

Line of Business :

manufacturing and trading of
 - MSG (monosodium glutamate), glutamic Acid, Sugar syrup, NaOH, HCP, etc
 - High-grade starch, Lysine, caustic soda 45%, 32%, bleaching agent
 - Agricultural products such as additives for cattle feed and fertilizer
 - Power plant 72MW

 

 

No. of Employees :

2,800 employees

 

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

 


 

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Exists

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Vietnam

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

vietnam - ECONOMIC OVERVIEW

 

Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.

 

Source : CIA

 


 

SUBJECT IDENTIFICATION & LEGAL FORM

 

Current legal status

English Name

 

VEDAN VIETNAM ENTERPRISE CORPORATION LIMITED

Vietnamese Name

 

CONG TY CO PHAN HUU HAN VEDAN VIET NAM

Trade name

 

VEDAN VIETNAM ENTERPRISE CORPORATION LIMITED

Short name

 

VEDAN VIETNAM

Type of Business

 

Foreign invested company

Year Established

 

1991

Investment Certificate No

 

471033000143

Date Of Issuance

 

30 Jun 2008

Place of Issuance

 

Dong Nai province People’s Committee

Registered Investment Capital

 

USD 501,860,000

Chartered capital

 

USD 133,470,000

Investment Duration

 

50 years

Status

 

Unlisted

Tax code

 

3600239719

Total Employees

 

2,800

Size

 

Large

Note

 

The correct name of the subject is as above.

 

Historical Identification & Legal form

List

Changed Items

Date of changes

1

Subject has got former Registered Investment Capital: USD 452,600,000, changed to USD 460,724,000, changed to USD 500,360,000, then Changed to: USD 501,860,000

30 Dec 2011

2

Subject has got former Chartered capital: USD 129,961,924 increased to USD 131,970,000, then Changed to: USD 133,470,000

09 Dec 2010

3

Subject has got former Investment Certificate No: 171A/GPDC21, Issuance on June 09th 2006, Issuance by Dong Nai industrial zone authority.

Changed to: 471033000143, Issuance by Dong Nai province People’s Committee

30 Jun 2008

4

Subject has got former Board Of Director: The General Directors: Mr. JOEL.J.WANG Changed to: Mr. YANG KUN HSIANG

2008

5

Subject has got former Shareholders: VEDAN ENTERPRISE CORPORATION - TAIWAN

Changed to: BURGHLEY ENTERPRISE PTE., LTD

2002

 

 

company ADDRESSES

 

Head Office

Address

 

National Road 51 - 1A Hamlet Phuoc Thai Commune, Long Thanh District, Dong Nai Province, Vietnam

Telephone

 

(84-61) 382 5111

Fax

 

(84-61) 354 3160

Email

 

vnmkt@vedaninternational.com 

Website

 

www.vedan.com.vn 

 

Factory Address

Address

 

Tan Lap ward, Ham Thuan Nam District, Binh Thuan Province, Vietnam

Telephone

 

(84-62) 3869371

Manager

 

Mr. HUANJG LIANG MING

 

Factory Address

Address

 

National Road 12 My Tan Village Ki Son Ward, Ky Anh District, Ha Tinh Province, Vietnam

Telephone

 

(84-39) 3866385

 

Factory Address

Address

 

Ky Son commune , Ky Anh District, Ha Tinh Province, Vietnam

Telephone

 

(84-39) 374341/ 42/43/.../49.

Fax

 

(84-39) 374349

Manager

 

Mr. CHANG JUNG CHOU

 

Branch in Dong Nai

Address

 

Phuoc Thai commune, Long Thanh District, Dong Nai Province, Vietnam

Note:  Including some factories 1. MSG & Glutamic acid Factory 2. Lysine Factory 3. Acid & Soda Factory 4. Electric Factory 5. Phuoc Thai Port 6. Starch & Syrup Factory Note: This industrial complex has many factories of subject for manufacture. Besides, subject also built a fertilizer factory in Dong Nai province, Veyu in Gia Lai and a Starch Factory in Ha Tinh province with the total investment capital of 12 million USD.

 

Branch in Ha Noi

Address

 

No 34 Plot 1A, Trung Yen 11B, Cau Giay District, Ha Noi City, Vietnam

Telephone

 

(84-4) 37833721

Fax

 

(84-4) 37833720

 

Branch in Binh Phuoc

Address

 

Long Phu Str Bu Nho ward, Phuoc Long District, Binh Phuoc Province, Vietnam

Telephone

 

(84-651) 3777627

Fax

 

(84-651) 3777631

 

 

DIRECTORS

 

1. NAME

 

Mr. YANG TOU HSIUNG –( DUONG DAU HUNG in Vietnamese)

Position

 

Chairman

Date of Birth

 

1942

ID Number/Passport

 

212783133

ID Issue Date

 

23 Jun 2005

ID Issue Place

 

Taiwan

Resident

 

No. 65 Hsin An Street Shalu, , Taichung , Taiwan

Nationality

 

Taiwanese

 

2. NAME

 

Mr. YANG KUN HSIANG

Position

 

General Director

Current resident

 

Long Thanh District, Dong Nai Province, Vietnam

Nationality

 

Taiwanese

 

3. NAME

 

Mr. HSIEH JAU HWANG

Position

 

Deputy General Director

Date of Birth

 

1950

Current resident

 

Long Thanh District, Dong Nai Province, Vietnam

Nationality

 

Taiwanese

Qualification

 

Management

Years of experience

 

16 years

 

BUSINESS NATURE AND ACTIVITIES

 

The subject registers and operates in the manufacturing and trading:
 - MSG (monosodium glutamate), glutamic Acid, Sugar syrup, NaOH, HCP, etc
 - High-grade starch, Lysine, caustic soda 45%, 32%, bleaching agent
 - Agricultural products such as additives for cattle feed and fertilizer
 - Power plant 72MW

 

 

IMPORT & EXPORT ACTIVITIES

 

IMPORT:

    Types of products

 

Molasses and Industrial salt

    Market

 

Thailand, Indonesia, Singapore, Taiwan, Japan, and Australia

    Mode of payment

 

L/C, T/T

 

EXPORT:

    Market

 

Taiwan, Japan, China, Hong Kong, Korea, Thailand, India, and Australia.

    Mode of payment

 

L/C, TT

 

 

BANKERS

 

1. CHINFON BANK Hochiminh City Branch

Address

 

27Tu Xuong Str, Ward 17 , 3 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 3932 5888

Fax

 

(84-8) 3932 6431

 

2. MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD - HO CHI MINH BRANCH

Address

 

No.5B Ton Duc Thang Str, 1 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 38225697

Fax

 

(84-8) 38225698

 

3. CHINATRUST COMMERCIAL BANK

Address

 

Floor 1 - Petrovietnam Tower - 1-5 Le Duan St , 1 District, Ho Chi Minh City, Vietnam

Telephone

 

(84-8) 39101888

Fax

 

(84-8) 39101999

 

 

SHAREHOLDERS

 

1. NAME

 

BURGHLEY ENTERPRISE PTE., LTD

Address

 

No. 51 - Goldhill Plaza#18-05, Singapore, Singapore

Number of shares

 

133,203,060

Value of shares

 

USD 133,203,060

Percentage

 

99.8%

 

2. NAME

 

VIETNAM ORSAN COMPANY LIMITED

Business Registration

 

411043000936

Tax code

 

0300828436

Address

 

Hamlet 9 Tan Thoi Hiep ward, 12 District, Ho Chi Minh City, Vietnam

Tel

 

(84-8) 37171428/ 37171563

Number of shares

 

133,470

Value of shares

 

USD 133,470

Percentage

 

0.1%

 

3. NAME

 

VEYU COMPANY LIMITED

Business Registration

 

391045000068

Tax code

 

5900345493

Address

 

Tan An ward, Gia Lai Province, Vietnam

Tel

 

(84-59) 383 2282

Number of shares

 

133,470

Value of shares

 

USD 133,470

Percentage

 

0.1%

 

 


FINANCIAL DATA

 

BALANCE SHEET

 

Balance sheet date

31/12/2010

31/12/2009

31/12/2008

Number of weeks

52

52

52

Unit

VND

USD

VND

ASSETS

A – CURRENT ASSETS

2,595,373,188,768

113,090,831

1,942,310,000,000

I. Cash and cash equivalents

455,979,302,520

22,955,866

280,163,000,000

1. Cash

333,115,298,724

11,309,934

148,669,000,000

2. Cash equivalents

122,864,003,796

11,645,932

131,494,000,000

II. Short-term investments

9,000,007,752

278,691

3,002,000,000

1. Short-term investments

9,000,007,752

278,691

3,002,000,000

2. Provisions for devaluation of short-term investments

0

0

0

III. Accounts receivable

810,344,218,820

31,661,402

613,987,000,000

1. Receivable from customers

755,592,893,752

29,010,606

471,468,000,000

2. Prepayments to suppliers

40,091,671,644

1,641,362

130,617,000,000

3. Inter-company receivable

0

0

0

4. Receivable according to the progress of construction

0

0

0

5. Other receivable

54,450,268,404

2,849,841

27,710,000,000

6. Provisions for bad debts

-39,790,614,980

-1,840,407

-15,808,000,000

IV. Inventories

1,301,154,293,096

56,657,164

1,033,120,000,000

1. Inventories

1,306,168,509,024

56,983,071

1,052,240,000,000

2. Provisions for devaluation of inventories

-5,014,215,928

-325,907

-19,120,000,000

V. Other Current Assets

18,895,366,580

1,537,708

12,038,000,000

1. Short-term prepaid expenses

1,722,433,360

147,451

1,340,000,000

2. VAT to be deducted

16,614,742,132

1,362,623

10,301,000,000

3. Taxes and other accounts receivable from the State

0

0

0

4. Other current assets

558,191,088

27,634

397,000,000

B. LONG-TERM ASSETS

2,175,426,290,976

121,089,353

1,715,629,000,000

I. Long term accounts receivable

17,325,998,440

1,398,333

24,919,000,000

1. Long term account receivable from customers

0

0

0

2. Working capital in affiliates

0

0

0

3. Long-term inter-company receivable

0

0

0

4. Other long-term receivable

17,325,998,440

1,398,333

24,919,000,000

5. Provisions for bad debts from customers

0

0

0

II. Fixed assets

2,008,015,329,044

109,601,147

1,478,441,000,000

1. Tangible assets

1,883,090,160,544

96,998,069

1,316,922,000,000

- Historical costs

9,365,496,751,792

476,240,668

7,474,652,000,000

- Accumulated depreciation

-7,482,406,591,248

-379,242,599

-6,157,730,000,000

2. Financial leasehold assets

0

0

0

- Historical costs

0

0

0

- Accumulated depreciation

0

0

0

3. Intangible assets

19,967,731,856

1,090,865

19,260,000,000

- Initial costs

31,157,622,980

1,514,600

24,188,000,000

- Accumulated amortization

-11,189,891,124

-423,735

-4,928,000,000

4. Construction-in-progress

104,957,436,644

11,512,213

142,259,000,000

III. Investment property

0

0

0

Historical costs

0

0

0

Accumulated depreciation

0

0

0

IV. Long-term investments

112,437,867,416

8,731,494

149,325,000,000

1. Investments in affiliates

110,527,628,616

5,838,138

99,248,000,000

2. Investments in business concerns and joint ventures

0

0

0

3. Other long-term investments

1,910,238,800

2,893,356

50,077,000,000

4. Provisions for devaluation of long-term investments

0

0

0

V. Other long-term assets

37,647,096,076

1,358,379

62,944,000,000

1. Long-term prepaid expenses

29,093,788,864

938,402

54,179,000,000

2. Deferred income tax assets

7,634,007,156

370,893

7,911,000,000

3. Other long-term assets

919,300,056

49,084

854,000,000

VI. Goodwill

0

0

0

1. Goodwill

0

0

0

TOTAL ASSETS

4,770,799,479,744

234,180,184

3,657,939,000,000

 

LIABILITIES

A- LIABILITIES

1,470,384,222,656

60,357,919

1,083,238,000,000

I. Current liabilities

1,177,095,206,800

43,979,462

1,018,180,000,000

1. Short-term debts and loans

351,890,712,152

17,641,428

581,467,000,000

2. Payable to suppliers

532,791,235,248

16,192,399

177,385,000,000

3. Advances from customers

6,884,167,432

393,361

5,220,000,000

4. Taxes and other obligations to the State Budget

26,954,453,932

2,181,297

104,328,000,000

5. Payable to employees

32,026,261,004

1,398,796

24,491,000,000

6. Accrued expenses

2,668,011,032

58,120

2,354,000,000

7. Inter-company payable

0

0

0

8. Payable according to the progress of construction contracts

0

0

0

9. Other payable

223,880,366,000

6,114,061

122,935,000,000

10. Provisions for short-term accounts payable

0

0

0

II. Long-Term Liabilities

293,289,015,856

16,378,457

65,058,000,000

1. Long-term accounts payable to suppliers

0

0

0

2. Long-term inter-company payable

0

0

0

3. Other long-term payable

274,627,592

17,856

53,000,000

4. Long-term debts and loans

288,892,456,428

16,222,000

63,717,000,000

5. Deferred income tax payable

0

0

0

6. Provisions for unemployment allowances

4,121,931,836

138,601

1,288,000,000

7. Provisions for long-term accounts payable

0

0

0

B- OWNER’S EQUITY

3,300,415,257,088

173,822,265

2,574,701,000,000

I. OWNER’S EQUITY

3,300,415,257,088

173,822,265

2,574,701,000,000

1. Capital

2,498,456,040,000

129,961,924

2,056,353,000,000

2. Share premiums

0

0

0

3. Other sources of capital

0

0

0

4. Treasury stocks

0

0

0

5. Differences on asset revaluation

0

0

0

6. Foreign exchange differences

0

-1,334,535

0

7. Business promotion fund

0

0

0

8. Financial reserved fund

0

0

0

9. Other funds

0

0

0

10. Retained earnings

801,959,217,088

45,194,876

518,348,000,000

11. Construction investment fund

0

0

0

II. Other sources and funds

0

0

0

1. Bonus and welfare funds (Elder form)

0

0

0

2. Sources of expenditure

0

0

0

3. Fund to form fixed assets

0

0

0

MINORITY’S INTEREST

0

0

0

TOTAL LIABILITIES AND OWNER’S EQUITY

4,770,799,479,744

234,180,184

3,657,939,000,000

 

PROFIT & LOSS STATEMENT

 

Description

FY2010

FY2009

FY2008

1. Total Sales

5,443,658,757,284

238,221,393

5,067,469,000,000

2. Deduction item

2,507,808,448

195,363

0

3. Net revenue

5,441,150,948,836

238,026,030

5,067,469,000,000

4. Costs of goods sold

4,316,399,957,964

164,224,409

3,917,145,000,000

5. Gross profit

1,124,750,990,872

73,801,621

1,150,324,000,000

6. Financial income

42,772,783,620

1,309,980

71,214,000,000

7. Financial expenses

75,979,435,892

3,788,668

96,701,000,000

- In which: Loan interest expenses

22,488,716,976

985,479

36,909,000,000

8. Selling expenses

304,509,898,664

14,016,474

224,783,000,000

9. Administrative overheads

218,394,345,700

12,109,065

217,191,000,000

10. Net operating profit

568,640,094,236

45,197,394

682,863,000,000

11. Other income

16,067,266,556

883,649

10,810,000,000

12. Other expenses

267,595,868,560

3,277,903

15,362,000,000

13. Other profit /(loss)

-251,528,602,004

-2,394,254

-4,552,000,000

14. Total accounting profit before tax

317,111,492,232

42,803,140

678,311,000,000

15. Current corporate income tax

80,927,503,412

7,004,872

117,836,000,000

16. Deferred corporate income tax

612,241,948

94,451

6,666,000,000

17. Interest from subsidiaries/related companies

0

0

0

18. Profit after tax

236,796,230,768

35,703,817

567,141,000,000

 

FINANCIAL RATIOS AND AVERAGE INDUSTRY RATIOS

 

Description

FY2010

FY2009

FY2008

Average Industry

Current liquidity ratio

2.20

2.57

1.91

1.70

Quick liquidity ratio

1.10

1.28

0.89

1.05

Inventory circle

3.32

2.90

4.36

7.68

Average receive period

54.36

48.55

44.22

37.77

Utilizing asset performance

1.14

1.02

1.39

1.72

Liability by total assets

30.82

25.77

29.61

51.74

Liability by owner's equity

44.55

34.72

42.07

145.40

Ebit / Total assets (ROA)

7.12

18.70

19.55

14.18

Ebit / Owner's equity (ROE)

10.29

25.19

27.78

31.73

Ebit / Total revenue (NPM)

6.24

18.38

14.11

10.11

Gross profit / Total revenue (GPM)

20.66

30.98

22.70

20.29

Note: The Average Industry was calculated by VietnamCredit based on our own statistical data

 

 

PAYMENT HISTORY & PERFORMANCE EXPERIENCES

 

Trade Morality

 

Normal

Liquidity

 

Medium

Payment status

 

Above Average

Financial Situation

 

Strong

Development trend

 

Positive

Litigation data

 

Yes

Bankruptcy

 

No Record

Payment Methods

 

L/C, T/TR, D/A, D/P

Sale Methods

 

Retailer and Wholesaler

Public opinion

 

Good

 

 

INTERPRETATION ON THE SCORES

 

The subject was established in 1991under the Investment Certificate No. 171A/GPDC21 issued by Dong Nai Province People's Committee. Currently, the company is operating under the investment Certificate No. 471033000143 with the registered investment capital of USD 501,860,000 and chartered capital of USD 133,470,000. Burghley Enterprise Pte., Ltd is the key shareholder who holds 99.8% its chartered capital.

The head office and factory of the subject are located at National Road 51, 1A Hamlet, Phuoc Thai Commune, Long Thanh District, Dong Nai Province, Vietnam. It also has many factories in Binh Thuan, Binh Phuoc, Ha Tinh Province, one transaction office in Ha Noi City and a system of distributing agencies nationwide.

The company specializes in manufacturing MSG (monosodium glutamate), high-grade starch, lysine, chlori-alkali and fertilizers in which the strongest activity of the subject is producing and trading in MSG and high-grade starch. The subject imports almost materials and additives from many foreign countries, such as Thailand, Indonesia, Singapore, Taiwan, Japan, and Australia. Currently, its products are exported to Taiwan, Japan, China, Hong Kong, Korea, Thailand, India, and Australia.

The company is a large size company in the industry. The company’s total assets in 2010 were VND 4,770.7 billion. According to the balance sheet, the self-financing ability is good. Liability by total assets in 2010 was 30.82% while the average industry was 51.74%. The company’s capital structure is safe for creditors. About the business result, the company’s total sales increased well. However, profit after tax in 2010 went down compared to previous years. It is due to the higher cost of goods sold in the year 2010. According to Mr. Thong, legal department, in 2011 the subject improved slightly and stably. We have tried to update the latest financial data but it is not provided by the subject and it also is not available in our sources.

In general, the subject’s business is stable and developing. The financial situation is strong. The subject has capacity to meet the financial commitments. No caution needed for the small and medium business transactions.

 

 

 

APPENDIX

 

INDUSTRY DATA

 

Industry code

Growth speed by price compared with 1994 (%)

Total enterprises 2010

Total employees 2011

(Thous.pers.)

Annual average capital of enterprises 2010

(billion dongs)

2011

2010

Agriculture, Forestry and Fishing

4.00

2.78

8,887

24,362.9

95,227

Industry and Construction

5.53

7.70

95,217

10,718.9

3,641,376

Trade and Services

6.69

7.52

187,195

15,270.2

6,957,082

 

ECONOMIC INDICATORS

 

 

2011 

2010 

2009 

Population (Million person)

87.84

86.93

86.02

Gross Domestic Products (USD billion)

119

102.2

91

GDP Growth (%)

5.89

6.78

5.32

GDP Per Capita (USD/person/year)

1,300

1,160

1,080

Inflation (% Change in Composite CPI)

18.58

11.75

6.88

State Budget Deficit compared with GDP (%)

4.9

5.8

6.9

 

SERVICE TRADE PERFORMANCE

 

Billion USD 

2011 

2010 

2009 

Exports

96.3

72.2

57.1

Imports

105.8

84.8

69.9

Trade Balance

-9.5

-12.6

-12.8

Source: General Statistics Office

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.75

UK Pound

1

Rs.85.08

Euro

1

Rs.69.04

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.