MIRA INFORM REPORT

 

 

Report Date :

29.09.2012

 

IDENTIFICATION DETAILS

 

Name :

P.T. CHAROEN POKPHAND INDONESIA TBK

 

 

Registered Office :

Jalan Ancol VIII No. 1, Ancol Barat, Jakarta Utara 14430

 

 

Country :

Indonesia

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

07.01.1972

 

 

Com. Reg. No.:

No. AHU-61146.AH.01.02.TH.2010

 

 

Legal Form :

Public Listed Company

 

 

Line of Business :

Animal Feed and Shrimp Feed Milling

 

 

No. of Employees :

4,229

 

 

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 :

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

INDONESIA - ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, grew an estimated 6.1% and 6.4% in 2010 and 2011, respectively. The government made economic advances under the first administration of President YUDHOYONO (2004-09), introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth in 2009. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25%, a small current account surplus, a fiscal deficit below 2%, and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government in 2012 faces the ongoing challenge of improving Indonesia's insufficient infrastructure to remove impediments to economic growth, labor unrest over wages, and reducing its fuel subsidy program in the face of rising oil prices

Source : CIA


BASIC SEARCH

 

Name of Company :

P.T. CHAROEN POKPHAND INDONESIA TBK

 

A d d r e s s :

Head Office & Jakarta Factory

Jalan Ancol VIII No. 1, Ancol Barat

Jakarta Utara 14430

Indonesia

P.O. Box           - 83 JKT

Phones             - (021) 6912501 (hunting), 6902787, 6902538,

                           (021) 6902567, 69005640

Fax.                  - (021) 6917325

Cable                - POKPHAND JAKARTA

Telex                - 42659 POKPHAND IA

Website            - http://www.prokar.com

                           http://www.tanindo.com

E-Mail               - charoen@idola.net.id

 

Surabaya Factory

Jalan Raya Surabaya Mojokerto Km. 19

Desa Beringin Bendo, Taman Sidoarjo

Surabaya, East Java

Phones             - (031) 782183, 782509

 

Medan Factory    

Jalan Tanjung Morawa Km. 8.5

Medan, North Sumatra

Phones             - (061) 751678

 

Tangerang Factory

Jalan Raya Serang Km. 30

Desa Cengkudu

Balaraja, Tangerang

West Java

 

Warehouse

Jalan Ir. Sutami Km. 8.5 No. 15

Tanjung Karang Timur

Bandar Lampung

Lampung

Phones             - (0721) 350041-44

Fax.                  - (0721) 350045

 

Date of Incorporation :

a. 7 January 1972 as P.T. CHAROEN POKPHAND INDONESIA ANIMAL FEED MILL CO., LTD.

b. 8 June 1990 as P.T. CHAROEN POKPHAND INDONESIA

c. February 1997 as P.T. CHAROEN POKPHAND INDONESIA Tbk.

 

Legal Form :

P.T. Tbk. (Perseroan Terbatas Terbuka) or Public Listed Company

 

Company Reg. No. :

The Ministry of Law and Human Rights

a. No. YA-5/197/21

    Dated 8 June 1973

b. No. C-UM.02.01.4728

    Dated 14 January 2003

c. No. AHU-97521.AH.01.02.TH.2008

    Dated 18 December 2008

d. No. AHU-61146.AH.01.02.TH.2010

    Dated 31 December 2010

 

Company Status :

Foreign Investment Company (PMA)

 

Permit by the Government Department :

a. The President of the Republic of Indonesia

      No. B-132/Pres/II/1971

      Dated 5 November 1971

b. The Capital Investment Coordinating Board

      - No. 383/III/PMA/1991

        Dated 17 June 1991

      - No. 299/II/PMA/2000

        Dated 1 November 2000

      - No. 123/II/PMA/2001

        Dated 30 April 2001

 

Related Companies :

A Member of the CHAROEN POKPHAND Group

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            - Rp. 400,000,000,000.-

Issued Capital                                  - Rp. 163,980,000,000.-

Paid up Capital                                - Rp. 163,980,000,000.-

 

Shareholders (as of December 31, 2011) :

a. P.T. CENTRAL AGROMINA                        - Rp. 91,064,000,000.- (55.53%)

b. PUBLICS (ownership below 5% each)     - Rp. 72,916,000,000.- (44.47%)

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

a.   Animal Feed and Shrimp Feed Milling

b.   Plastic Bag Manufacturing

c.   Poultry Equipment Manufacturing

d.   Investment Holding

 

Production Capacity :

Initial Plant

a.   Animal Feeds                            -    1,090,000 tons p.a.

b.   Shrimp Feeds                            -        84,000 tons p.a.

c.   Plastic Bags       

      - Outer Bags                              - 12,500,000 sheet p.a.

      - Inner Bags                               - 12,500,000 sheet p.a.

d.   Hanging Feeder Tubes                -       900,000 units p.a.

e.   Chicks Waters                           -       750,000 units p.a.

f.    Egg trays                                  -       600,000 units p.a.

g.   Warehouse *)                            -       100,000 tons

 

Expansion (1998)

a.   Chick Meet Raw                        -   4,500 tons p.a.

b.   Chick Meet Frozen                     - 14,400 tons p.a.

c.   Chick Meet Processed               -   8,544 tons p.a.

 

Expansion Plant (2000)

Meet processed                               - 1,500 tons p.a.

 

Expansion Plant (2001)

Fish Feeds                                      - 108,000 tons p.a.

 

Total Investment :

Initial Unit

a.   Owned  Capital           - Rp   60.0 billion

b.   Reinvested Profit         - Rp     1.7 billion

c.   Loan Capital               - Rp 100.8 billion

d.   Total Investment          - Rp 162.5 billion

 

Expansion Unit (1998)

a.   Equity Capital             - Rp  48.6 billion

b.   Loan Capital               - Rp 179.5 billion

c.   Total Investment          - Rp 228.1 billion

 

Expansion Unit (2000)

a.   Equity Capital             - Rp  --- billion

b.   Loan Capital               - Rp 6.2 billion

c.   Total Investment          - Rp 6.2 billion

 

Expansion Unit (2001)

a.   Equity Capital             - Rp  --- billion

b.   Loan Capital               - Rp 2.3 billion

c.   Total Investment          - Rp 2.3 billion

 

Started Operation :

1972

 

Brand Name :

CHAROEN POKPHAND

 

Technical Assistance :

The CHAROEN POKPHAND Group

 

Number of Employee :

4,229 persons (as of June 30, 2012)   

 

Marketing Area :

Domestic    - 100%

 

Main Customers :

a. P.T. SURYA UNGGAS MANDIRI

b. P.T. SUMBER TERNAK PRATAMA

c. P.T. MULTI SARANA PAKANINDO

d. P.T. TIARA TUNGGAL MANDIRI

e. P.T. SINAR INTI MUSTIKA

f.  P.T. SEMESTA MITRA SEJAHTERA

g. P.T. BINTANG SEJAHTERA BERSAMA

h. P.T. MITRA SINAR JAYA

i.  P.T. INDAH TERNAK MANDIRI

j.  P.T. CEMERLANG UNGGAS LESTARI

k. Etc.

 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. METRO FEED INDONESIA

b. P.T. JAPFA COMFEED INDONESIA

c. P.T. MULTI DARANA PAKANINDO

d. P.T. MITRA MANGGALINDO

e. Etc.

 

Business Trend :

Growing

 

 

BANKER, AUDITOR & LITIGATION

 

B a n k e r s :

a. P.T. Bank MANDIRI Tbk

    Wisma Bank MANDIRI

    Jalan Gatot Subroto Kav. 36-38

    Jakarta Barat

b. P.T. Bank PERMATA Tbk

    Wisma Bank PERMATA

    Jalan Jend. Sudirman Kav. 27

    Jakarta Selatan

c. CITIBANK N.A.

    CITIBANK Building

    Jalan Jend. Sudirman Kav. 54-55

    Jakarta Selatan

 

Auditor :

Purwantono, Sarwoko & Sandjaja

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales :

2007 – Rp.   8,767.9 billion

2008 – Rp. 13,311.1 billion

2009 – Rp. 14,569.3 billion

2010 – Rp. 15,007.8 billion

2011 – Rp. 17,958.0 billion

2012 – Rp. 10,240.4 billion (as of 30 June 2012)

 

Net Profit (Loss) :

2007 – Rp.    185.4 billion

2008 – Rp.    254.0 billion

2009 – Rp. 1,612.7 billion

2010 – Rp. 2,210.3 billion

2011 – Rp. 2,362.5 billion

2012 – Rp. 1,691.4 billion (as of 30 June 2012)

 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                      - Mr. Tjiu Thomas Effendy

Vice Pres. Directors                   - a. Mr. Peraphon Prayooravong

                                                  b. Mr. Vinai Rakphongphairoj

Directors                                   - a. Mrs. Ong Mei Sian

                                                  b. Mr. Jemmy

                                                  c. Mr. Eddy Dharmawan

                                                  d. Mr. Ferdiansyah Gunawan Tjoe

 

Board of Director :

President Commissioner             - Mr. Hadi Gunawan Tjoe

Vice Pres. Commissioners         - a. Mr. Jiacipto Jiaravanon

                                                     b. Mr. Jialipto Jiaravanon

Independent Commissioners       - a. Mr. Herman Sugianto

                                                  b. Mr. Suparman S.

 

Signatories :

President Director (Mr. Tjiu Thomas Effendy) or one of Vice Pres. Directors (Mr. Peraphon Prayooravong and Mr. Vinai Rakphongphairoj) or one of directors (Mrs. Ong Mei Sian, Mr. Jemmy, Mr. Eddy Dharmawan and Mr. Feerdiansyah Gunawan Tjoe) which must be approved by Board of Commissioners.

 

 

CAPABILITIES

 

Management Capability :

Good

 

Business Morality :

Good

 

Credit Risk :

Below average

 

Credit Recommendation :

Credit can be proceeded normally

 

Proposed Credit Limit :

Moderate amount

 

 

OVERALL PERFORMANCE

 

Initially named P.T. CHAROEN POKPHAND INDONESIA ANIMAL FEED MILL Co., Ltd., the company was set up in 1972 with an authorized capital of US$ 1,000,000.- and issued capital of US$ 300,000.- of which US$ 30,000.- was paid up. The founders and original shareholders are         Mr. Sumet Jiaravanon, Mr. Jaran Chiaravanont, Mr. Montri Chiaravanont (the three are Thai businessmen of Chinese extraction) and Mr. Johannes Purnama Sudarma SH (an Indonesian businessman of Chinese origin). In 1990 the company was renamed to P.T. CHAROEN POKPHAND INDONESIA. In February 1991 the company sold out 25% of its shares to the public through the Jakarta Stock Exchange (BEJ).  Its articles of association have subsequently been changed for several times. In February 1997, the authorized capital was increased to Rp. 400,000,000,000.-  issued capital to Rp. 140,766,917,500.- entirely paid-up and concurrently a word Terbuka (Tbk) was added behind its name to comply with new law on publicly listed company to P.T. CHAROEN POKPHAND INDONESIA Tbk., is abbreviated P.T. CPIT.

 

Pursuant to annual report of the company, as of 31 December 2009 the issued capital was raised to Rp. 164,228,000,000.- and fully paid up.   Then, as of 31 December 2011, the issued capital was declined to Rp. 163,980,000,000.- The shareholders of the company are P.T. CENTRAL AGROMINA (55.53%) and Publics (44.47%).  The latest amendment to Articles of
Association was approved by the Ministry of Law and Human Right with the Decision Letter No. AHU-61146.AH.01.0.2.TH.2010 dated December 31, 2010.  No changes have been effected in term of its shareholding composition and capital structures to date.

 

We observed that P.T. CENTRAL AGROMINA is a private company whose majority business stakes is controlled by Mr. Slamet Jiaravanon and his family members. Mr. Jiaravanon is also founder and majority business stakes owner of the CHAROEN POKPHAND Group, the largest business group in Indonesia in animal feed milling and distribution.

 

P.T. CPIT (“the Company”) is a Foreign Capital Investment (PMA) company dealing with animal feed milling by managing a plant originally located at Jalan Ancol VIII/1, Ancol Barat (North Jakarta). Its operation has been expanding rapidly by establishing two other factories respectively in Surabaya (East Java) and Medan (North Sumatra). Furthermore, they also operate the same plant in Tangerang (West Java).  P.T. CPIT has several business segments with different characteristics. Today, the Company is focused on agro-business activities that encompass the entire spectrum of the poultry business, from the production of superior feed products, to the breeding of fast-growing, disease-resistant poultry stock and to the creation of high quality processed poultry products.

 

The Company is also the dominant force in the production and supply of poultry breeding stock for layer and boiler chicken in Indonesia. As with poultry feed, the Company is the large producer of high quality DOC for Indonesian farmers thanks to an extensive network of breeding facilities across Java, Kalimantan, Bali, Sulawesi and Sumatra.

 

While poultry feed and poultry breeding activities have historically been the main agro-business focus, the Company has also responded to the rising poultry consumption by expanding into poultry processing and production of high value-added poultry products. This is carried out at the Company’s own slaughterhouse and processing plant in Cikande (West Java), Salatiga (Central Java) and Surabaya (East Java).

 

      From the perspective of consolidated net sales, the biggest contribution was from the poultry feed segment, followed by DOC, processed chicken and others, which consist of poultry equipment, packaging and others at amounts to immaterial to be included in the analysis.  The details of net sales based on business segments 2008 – 2011 (in million Rupiah) are as follows:

 

Products

Sales Value

2011

2010

2009

2008

Poultry Feed

13,822,389

11,208,122

11,130,084

10,310,462

Day Old Chicks (DOC)

2,404,605

2,447,278

2,192,585

1,895,753

Processed Chicken

1,579,060

1,323,232

1,202,626

1,0444,816

Poultry Equipment

--

18,045

18,654

26,178

Packaging

--

20,864

18,576

33,932

Others

151,918

60,281

6,742

--

TOTAL

17,957,972

15,077,822

14,569,267

13,311,141

Source: PT. Charoen Pokphand Indonesia Tbk.

 

Pursuant to Annual Report of the Company, As of June 30, 2012, P.T. CPIT has ownership interest of more than 50% shares directly and indirectly in the following subsidiaries which are engaged in poultry farming, trading and processed chicken, production and distribution of poultry feed, chicken feather meal and others. The table of P.T. CPIT’s subsidiary companies shall be as follows:

 

                       (In Rp million)

Name of Subsidiary

Lines of Business

Start of Operations

% of Ownership

Total Assets

(30 June 2012)

Direct ownership

 

 

 

 

PT. Charoen Pokphand Jaya Farm

Poultry farming

1972

99.99

3,195,684

PT. Primafood International

Trading and processed chicken

2000

99.96

159,694

PT. Vista Grain

Production and distribution of poultry feed

1982

99.92

43,500

PT. Poly Packaging Industry

Production of plastic product

2003

99.99

57,083

PT. Feprotama Pertiwi

Production and distribution of chicken feather meal

1994

99.32

24,290

PT. Agrico International

Trading

2009

99.99

139,363

PT. Sarana Proteina Utama

Poultry farming

2012

100.00

84,793

Indirect ownership

 

 

 

 

PT. Centralavian Pertiwi

Poultry farming

1991

100.00

417,775

PT. Satwa Utama Raya

Poultry farming

1987

99.99

339,120

PT. Vista Agung kencana

Poultry farming

1986

99.99

127,606

PT. Istana Satwa Borneo

Poultry farming

1989

99.96

70,273

PT. Cipta Khatulistiwa Mandiri

Poultry farming

1989

50.00

62,630

PT. Agrico International

Trading

2009

0.01

139,363

PT. Cipendawa Agriindustri

Poultry farming

2010

100.00

68,602

PT. Poly Packaging Industry

Plastic Product Industry

2003

0.01

57,082

PT. Kharisma Proteindo Utama

Poultry farming

2012

100.00

3,492

 

      According to financial statement the total sales turnover of P.T. CPIT in 2008 amounted to Rp 13,311.1 billion with a net profit of Rp 254.0 billion, increased to Rp 14,569.3 billion with a net profit of Rp 1,612.7 billion in 2009 rose again to Rp 15,077.8 billion with a net profit of Rp 2,210.3 billion in 2010 and rose again to Rp. 17,958.0 billion with a net profit of Rp. 2,362.5 billion in 2011.   As per June 30, 2012, its sales turnover was Rp. 10,240.4 billion with a net profit of Rp. 1,691.4 billion. So far, we have never heard that P.T. CPIT has been black listed by Bank Indonesia (Central Bank) or involved in detrimental cases being settled in the local court. Financial highlights as of 31 December 2009, 2010, 2011 and as of June 30, 2012 are attached.

 

The management of P.T. CPIT is led by Mr. Tjiu Thomas Effendy (54) as president director.  He acquired his Master of Business Administration from the University of the City of Mania, Philippines in 1994.  Started his career in the Company in 1980 and appointed President Director of the Company in 2008.  In daily activities, he is assisted by Mr. Peraphon Prayooravong (59) and Mr. Vinai Rakphongphairoj (56), both as vice president directors and four directors namely Mrs. Ong Mei Sian (50), Mr. Jemmy (36), Mr. Eddy Dharmawan (36) and Mr. Ferdiansyah Gunawan Tjoe (37).  The management reputation is the above business is excellent.  The management maintains wide relation with home and overseas private businessmen. So far, we have never yet heard of the company’s management having been involved in business malpractices. P.T. CPIT is sufficiently fairly good for business transaction.

 

 

Attachment

 

(in million Rp )

DESCRIPTION

30  June

31 December

2012

2011

2010

2009

1. ASSETS

 

 

 

 

    a. Current Assets

 

 

 

 

         - Cash and Cash Equivalent

1,344,155

876,198

1,316,840

387,996

         - Trade Receivable       

 

 

 

 

             * Third Parties

1,540,192

1,331,463

883,855

857,286

             * Related Parties

667

21,607

6,635

156

         - Other Receivable

 

 

 

 

             * Third Parties

145,394

22,307

55,743

11,791

             * Related Parties

15,793

6,330

370

187,568

         - Inventories - net

2,415,532

2,339,543

1,554,780

1,575,018

         - Breeding flocks – net

577,820

527,496

395,111

396,759

         - Prepaid expenses and advances

288,362

124,532

61,302

52,269

         - Prepaid value added tax

--

769

--

--

       Total Current Assets

6,327,915

5,250,245

4,274,636

3,468,843

   b. Non-current Assets

 

 

 

 

        - Deferred Tax Assets

71,659

70,486

71,036

22,176

        - Property, plant and equipment - net

3,747,071

3,198,604

1,931,069

1,685,370

        - Claims for tax refund

288,012

269,786

194,850

134,664

        - Goodwill

7,438

7,438

--

--

        - Others - net

63,111

51,645

46,685

38,322

      Total Non-Current Assets

4,177,291

3,597,959

2,243,640

1,880,532

      TOTAL ASSETS = TOTAL LIABILITIES

      AND STOCKHOLDERS’ EQUITY

10,505,206

8,848,204

6,518,276

5,349,375

2. LIABILITIES

 

 

 

 

   a. Short-term bank loans

273,300

241,360

2,080

40,000

   b. Trade Payables

 

 

 

 

       - Third Parties

568,948

599,017

737,302

688,602

       - Related Parties

45,478

30,236

17,892

46,729

   c. Other Payables

 

 

 

 

       - Third parties

209,175

154,143

119,437

95,808

       - Related parties

327,541

217,640

77,161

14,831

   d. Customer advance

--

10,958

12,364

13,197

   e. Taxes payable

285,083

215,865

269,492

333,527

   f.  Accrued expenses

144,952

81,086

71,028

76,800

g. Current portion of long-term debts

111,497

36,205

166,949

510,737

   Total Current Liabilities

1,965,974

1,575,552

1,461,341

1,820,231

   b. Non-Current Liabilities

 

 

 

 

       - Deferred Tax Liabilities – net

3,154

2,718

10,342

11,552

       - Long-term debts - net

1,005,140

766,770

282,477

318,884

       - Employees’ benefits

343,895

313,694

279,080

247,034

   Total Non-Current Liabilities

1,352,189

1,083,182

574,899

577,470

       - Minority Interests

--

--

23,604

18,656

3. STOCKHOLDERS’ EQUITY

 

 

 

 

  - Issued and Paid up Capital

163,980

163,980

163,980

164,228

  - Additional Paid up Capital

147,037

147,037

147,037

147,259

  - Other equity

(10,856)

(10,856)

(10,856)

(10,856)

  - Difference in value of restructuring

(15,006)

(15,006)

(15,006)

(15,006)

  - Retained Earning

7,162,158

6,161,267

4,458,432

2,647,393

  - Non-controlling Interests

24,885

28,203

23,604

--

  - Total Equity

7,187,043

6,189,470

4,482,036

2,933,018

   Total Stockholders’ Equity

10,505,206

8,848,204

6,518,276

5,349,375

 

 

 

 

 

3. INCOME STATEMENT

 

 

 

 

    a. Net Sales

10,240,366

17,957,972

15,077,822

14,569,267

    b. Cost of Goods Sold

(7,562,498)

(14,033,726)

(11,323,708)

(11,689,920)

    c. Gross Profit

2,677,868

3,924,246

3,754,114

2,879,347

    d. Operating Expenses

(471,721)

(915,033)

(916,695)

(822,466)

    e. Operating Profit (Loss)

2,306,147

3,009,213

2,837,419

2,056,881

    f.  Other Income (Expenses)

(41,625)

(34,633)

(19,192)

103,515

    g. Profit Before Income Tax

2,164,522

2,974,580

2,818,227

2,160,396

    h. Income Tax Expanse

(473,139)

(612,083)

(598,366)

(540,978)

    i.  Income before Minority Interest

1,691,383

2,362,497

2,219,861

1,619,418

    j.  Minority interest

--

--

(9,595)

(6,708)

    k. Net Profit (Loss)

1,691,383

2,362,497

2,210,266

1,612,710

Notes: Audited by Purwantono, Suherman & Surya (a member of Ernst & Young)

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.69

UK Pound

1

Rs.85.71

Euro

1

Rs.68.14

 

 

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

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NB

                                       New Business

 

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This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

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.