MIRA INFORM REPORT

 

 

Report Date :

05.08.2013

 

IDENTIFICATION DETAILS

 

Name :

GERSAN ELEKTRIK TICARET VE SANAYI A.S.

 

 

Registered Office :

Istanbul Anadolu Yakasi Organize Sanayi Bolgesi Gazi Bulv. No:39-41 Tuzla Istanbul

 

 

Country :

Turkey

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

19.08.1985

 

 

Com. Reg. No.:

217505

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacture and trade of cable support systems, cable trays, earthing materials, underfloor cable trays, platform gridirons, tension and suspension busbar systems.

 

 

No. of Employees :

353

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but correct

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 – March 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Turkey

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

TURKEY - ECONOMIC OVERVIEW

 

Turkey's largely free-market economy is increasingly driven by its industry and service sectors, although its traditional agriculture sector still accounts for about 25% of employment. An aggressive privatization program has reduced state involvement in basic industry, banking, transport, and communication, and an emerging cadre of middle-class entrepreneurs is adding dynamism to the economy and expanding production beyond the traditional textiles and clothing sectors. The automotive, construction, and electronics industries, are rising in importance and have surpassed textiles within Turkey's export mix. Oil began to flow through the Baku-Tbilisi-Ceyhan pipeline in May 2006, marking a major milestone that will bring up to 1 million barrels per day from the Caspian to market. Several gas pipelines projects also are moving forward to help transport Central Asian gas to Europe through Turkey, which over the long term will help address Turkey's dependence on imported oil and gas to meet 97% of its energy needs. After Turkey experienced a severe financial crisis in 2001, Ankara adopted financial and fiscal reforms as part of an IMF program. The reforms strengthened the country's economic fundamentals and ushered in an era of strong growth - averaging more than 6% annually until 2008. Global economic conditions and tighter fiscal policy caused GDP to contract in 2009, but Turkey's well-regulated financial markets and banking system helped the country weather the global financial crisis and GDP rebounded strongly to 9.2% in 2010, as exports returned to normal levels following the recession. Growth dropped to approximately 3% in 2012. Turkey's public sector debt to GDP ratio has fallen to about 40%, and at least one rating agency upgraded Turkey's debt to investment grade in 2012. Turkey remains dependent on often volatile, short-term investment to finance its large trade deficit. The stock value of FDI stood at $117 billion at year-end 2012. Inflows have slowed because of continuing economic turmoil in Europe, the source of much of Turkey's FDI. Turkey's relatively high current account deficit, uncertainty related to monetary policy-making, and political turmoil within Turkey's neighborhood leave the economy vulnerable to destabilizing shifts in investor confidence.

Source : CIA

COMPANY IDENTIFICATION

 

 

NAME

:

GERSAN ELEKTRIK TICARET VE SANAYI A.S.

HEAD OFFICE ADDRESS

:

Istanbul Anadolu Yakasi Organize Sanayi Bolgesi Gazi Bulv. No:39-41 Tuzla Istanbul / Turkey

PHONE NUMBER

:

90-216-593 00 50 (10 lines)

 

FAX NUMBER

:

90-216-593 00 60

 

WEB-ADDRESS

:

www.gersan.com.tr

E-MAIL

:

info@gersan.com.tr

 

 

LEGAL STATUS AND HISTORY

 

 

TAX OFFICE

:

Buyuk Mukellefler

TAX NO

:

3940048425

REGISTRATION NUMBER

:

217505

REGISTERED OFFICE

:

Istanbul Chamber of Commerce

DATE ESTABLISHED

:

19.08.1985

ESTABLISHMENT GAZETTE DATE/NO

:

10.10.1985/1363

LEGAL FORM

:

Joint Stock Company

TYPE OF COMPANY

:

Private

AUTHORIZED CAPITAL

:

TL   50.000.000

PAID-IN CAPITAL

:

TL   30.000.000

HISTORY

:

Previous Address

:

Mermerciler Organize Sanayi Bolgesi Gazi Bulv. No:37 Tuzla

Changed On

:

19.10.2011 (Commercial Gazette Date /Number 25.10.2011/ 7928)

Previous Address

:

Mermerciler Organize Sanayi Bolgesi Gazi Bulv. No:39-41 Tuzla

Changed On

:

10.07.2012 (Commercial Gazette Date /Number 16.07.2012/ 8112)

Other Changes

:

TL 24.000.000

Changed On

:

13.08.2012 (Commercial Gazette Date /Number 17.08.2012/ 8136)

 

 

 

 

OWNERSHIP / MANAGEMENT

 

 

NOTES ON OWNERSHIP / MANAGEMENT

:

Quoted at Stock Exchange.

 

 

SHAREHOLDERS

:

Open to Public

65,81 %

Yuksel Kardes

31,17 %

Others

3,02 %

 

 

BOARD OF DIRECTORS

:

Yuksel Kardes

Chairman

Ulvi Adalmis

Vice-Chairman

Afife Sebnem Tinik

Member

Omer Elbistanli

Member

Menduha Ozturk

Member

Irfan Sahin

Member

Gulfem Oktay

Member

 

 

DIRECTORS

:

Yuksel Kardes                                                                                                                                                                                                                                                                                   

General Manager

 

 

OPERATIONS

 

 

BUSINESS ACTIVITIES

:

Manufacture and trade of cable support systems, cable trays, earthing materials, underfloor cable trays, platform gridirons, tension and suspension busbar systems.

 

NACE CODE

:

DL.31.20

 

NUMBER OF EMPLOYEES

:

353

 

NET SALES

:

10.969.023 TL

(2003) 

19.358.266 TL

(2004) 

23.467.531 TL

(2005) 

27.795.974 TL

(2006) 

38.023.087 TL

(2007) 

41.893.051 TL

(2008) 

43.320.803 TL

(2009) 

55.956.467 TL

(2010) 

103.552.390 TL

(2011) 

85.034.619 TL

(2012) 

20.197.650 TL

(01.01-31.03.2013) 

 

 

PRODUCTION

:

Cable Support Systems  ( kgs )

 

 

 

8.773.977

 

 

(2008)

10.014.347

 

 

(2009)

7.653.876

 

 

(01.01-30.09.2010)

 

 

 

 

IMPORT VALUE

:

4.111.558 TL

(2008)

3.028.213 TL

(2009)

8.064.493 TL

(2010)

17.626.513 TL

(2011)

14.667.988 TL

(2012)

59.413 TL

(01.01-31.03.2013)

 

 

EXPORT VALUE

:

9.553.918 TL

(2006)

16.117.263 TL

(2007)

19.410.208 TL

(2008)

28.596.834 TL

(2009)

25.474.518 TL

(2010)

42.490.512 TL

(2011)

42.746.858 TL

(2012)

10.734.472 TL

(01.01-31.03.2013)

 

 

 

EXPORT COUNTRIES

:

Algeria

Bulgaria

France

Georgia

Jordan

Hungary

India

Kazakhstan

Lebanon

Libya

Maldives

Malta

Netherlands

Northern Cyprus Turkish Republic

Oman

Qatar

Russia

Sudan

U.K.

 

MERCHANDISE  EXPORTED

:

Cable support systems

 

HEAD OFFICE ADDRESS

:

Istanbul Anadolu Yakasi Organize Sanayi Bolgesi Gazi Bulv. No:39-41 Tuzla  Istanbul / Turkey

 

BRANCHES

:

Factory  :  Velioglu Organize Sanayi Bolgesi Mah. 1.Cad. 6 ve 7. Sok. Caycuma Zonguldak/Turkey

 

Liaison Office  :  Bestepe Mahallesi, Mertebe Sok. No:26/2 Ankara/Turkey

 

Liaison Office  :   U.A.E.

 

Liaison Office  :  Demirtaspasa Mah. Ata Sokak Gazcilar Cad. Petek Bozkaya Is Merkezi B Blok No:502 Osmangazi Bursa/Turkey

 

Liaison Office  :   Qatar

 

Store  :   Kazakhstan

 

Head Office/Factory  :  Istanbul Anadolu Yakasi Organize Sanayi Bolgesi Gazi Bulv. No:39-41 Tuzla Istanbul/Turkey

                                                                                

 

TREND OF BUSINESS

:

There was a decline at business volume in nominal terms in  2012.

SIZE OF BUSINESS

:

Giant

 

 

FINANCE

 

 

CREDIT FACILITIES

:

The subject company is making active use of credit facilities.

 

PAYMENT BEHAVIOUR

:

No payment delays have come to our knowledge.

 

KEY FINANCIAL ELEMENTS

:

 

(2009) TL

(2010) TL

(2011) TL

(2012) TL

(01.01-31.03.2013) TL

Net Sales

43.320.803

55.956.467

103.552.390

85.034.619

20.197.650

Profit (Loss) Before Tax

2.497.182

-2.409.915

-6.272.947

-1.092.785

142.141

Stockholders' Equity

19.514.624

30.382.459

36.530.562

42.099.416

42.468.660

Total Assets

30.049.094

70.394.443

102.676.733

99.509.153

101.722.377

Current Assets

21.391.175

33.811.697

54.518.989

48.005.315

50.145.727

Non-Current Assets

8.657.919

36.582.746

48.157.744

51.503.838

51.576.650

Current Liabilities

8.460.649

21.151.670

34.463.761

31.232.177

33.621.595

Long-Term Liabilities

2.073.821

18.860.314

31.682.410

26.177.560

25.632.122

Gross Profit (loss)

15.506.369

7.568.652

9.357.069

10.496.698

3.650.105

Operating Profit (loss)

2.894.219

-2.374.272

-624.678

-68.169

-380.225

Net Profit (loss)

2.128.591

-2.445.524

-6.030.840

-192.323

423.863

 

 

 

 

COMMENT ON FINANCIAL POSITION

 

Capitalization

Satisfactory As of 31.03.2013

Liquidity

Satisfactory As of 31.03.2013

Remarks On Liquidity

The unfavorable gap between average collection and average payable period has an adverse effect on liquidity.

Profitability

Good Operating Profitability  in 2009

Good Net Profitability  in 2009

Operating Loss  in 2010

Net Loss  in 2010

Operating Loss  in 2011

Net Loss  in 2011

Operating Loss  in 2012

Net Loss  in 2012

Operating Loss (01.01-31.03.2013)

Fair Net Profitability (01.01-31.03.2013)

 

Gap between average collection and payable periods

Unfavorable in 01.01-31.03.2013

General Financial Position

Fair

 

 

 

Incr. in producers’ price index

 

Average USD/TL

Average EUR/TL

Average GBP/ TL

 ( 2003 )

13,90 %

1,5302

1,7141

2,4982

 ( 2004 )

13,84 %

1,4266

1,7666

2,6001

 ( 2005 )

2,66 %

1,3499

1,6882

2,4623

 ( 2006 )

11,58 %

1,4309

1,7987

2,6377

 ( 2007 )

5,94 %

1,3075

1,7901

2,6133

 ( 2008 )

8,11 %

1,2858

1,8876

2,3708

 ( 2009 )

5,93 %

1,5460

2,1529

2,4094

 ( 2010 )

8,87 %

1,5128

2,0096

2,3410

 ( 2011 )

13,33 %

1,6797

2,3378

2,6863

 ( 2012 )

2,45 %

1,7995

2,3265

2,8593

 ( 01.01-31.03.2013)

0,50 %

1,7901

2,3575

2,7927

 ( 01.01-30.06.2013)

2,46 %

1,8251

2,3936

2,8262

 

 

BALANCE SHEETS

 

 

 ( 31.12.2009 )  TL

 

 ( 31.12.2010 )  TL

 

 ( 31.12.2011 )  TL

 

CURRENT ASSETS

21.391.175

0,71

33.811.697

0,48

54.518.989

0,53

Not Detailed Current Assets

0

0,00

0

0,00

0

0,00

Cash and Banks

4.835.093

0,16

11.781.394

0,17

9.744.071

0,09

Marketable Securities

632.394

0,02

0

0,00

0

0,00

Account Receivable

7.208.310

0,24

7.635.306

0,11

12.385.082

0,12

Other Receivable

186.072

0,01

392.871

0,01

195.821

0,00

Inventories

3.138.758

0,10

7.388.206

0,10

19.872.020

0,19

Advances Given

0

0,00

0

0,00

0

0,00

Accumulated Construction Expense

0

0,00

0

0,00

0

0,00

Other Current Assets

5.390.548

0,18

6.613.920

0,09

12.321.995

0,12

NON-CURRENT ASSETS

8.657.919

0,29

36.582.746

0,52

48.157.744

0,47

Not Detailed Non-Current Assets

0

0,00

0

0,00

0

0,00

Long-term Receivable

4.086

0,00

10.040

0,00

16.232

0,00

Financial Assets

0

0,00

0

0,00

0

0,00

Tangible Fixed Assets (net)

7.885.313

0,26

35.555.124

0,51

47.013.405

0,46

Intangible Assets

309.797

0,01

437.734

0,01

153.831

0,00

Deferred Tax Assets

259.271

0,01

307.409

0,00

762.880

0,01

Other Non-Current Assets

199.452

0,01

272.439

0,00

211.396

0,00

TOTAL ASSETS

30.049.094

1,00

70.394.443

1,00

102.676.733

1,00

CURRENT LIABILITIES

8.460.649

0,28

21.151.670

0,30

34.463.761

0,34

Not Detailed Current Liabilities

0

0,00

0

0,00

0

0,00

Financial Loans

3.759.105

0,13

7.025.000

0,10

16.563.798

0,16

Accounts Payable

3.253.349

0,11

12.140.747

0,17

15.166.416

0,15

Loans from Shareholders

0

0,00

0

0,00

0

0,00

Other Short-term Payable

638.223

0,02

813.022

0,01

1.332.491

0,01

Advances from Customers

0

0,00

0

0,00

0

0,00

Accumulated Construction Income

0

0,00

0

0,00

0

0,00

Taxes Payable

416.258

0,01

0

0,00

0

0,00

Provisions

52.700

0,00

54.110

0,00

0

0,00

Other Current Liabilities

341.014

0,01

1.118.791

0,02

1.401.056

0,01

LONG-TERM LIABILITIES

2.073.821

0,07

18.860.314

0,27

31.682.410

0,31

Not Detailed Long-term Liabilities

0

0,00

0

0,00

0

0,00

Financial Loans

1.431

0,00

14.208.325

0,20

25.809.914

0,25

Securities Issued

0

0,00

0

0,00

0

0,00

Long-term Payable

0

0,00

0

0,00

0

0,00

Loans from Shareholders

0

0,00

0

0,00

0

0,00

Other Long-term Liabilities

483.190

0,02

3.059.651

0,04

4.334.995

0,04

Provisions

1.589.200

0,05

1.592.338

0,02

1.537.501

0,01

STOCKHOLDERS' EQUITY

19.514.624

0,65

30.382.459

0,43

36.530.562

0,36

Not Detailed Stockholders' Equity

0

0,00

0

0,00

0

0,00

Paid-in Capital

13.482.000

0,45

13.482.000

0,19

24.000.000

0,23

Cross Shareholding Adjustment of Capital

0

0,00

0

0,00

0

0,00

Inflation Adjustment of Capital

1.865.909

0,06

1.865.909

0,03

1.865.909

0,02

Equity of Consolidated Firms

-124.515

0,00

141.775

0,00

365.058

0,00

Reserves

290.649

0,01

2.435.444

0,03

637.815

0,01

Revaluation Fund

1.871.990

0,06

14.902.855

0,21

16.097.958

0,16

Accumulated Losses(-)

0

0,00

0

0,00

-405.338

0,00

Net Profit (loss)

2.128.591

0,07

-2.445.524

-0,03

-6.030.840

-0,06

TOTAL LIABILITIES AND EQUITY

30.049.094

1,00

70.394.443

1,00

102.676.733

1,00

 

 

 

 ( 31.12.2012 )  TL

 

 ( 31.03.2013 )  TL

 

CURRENT ASSETS

48.005.315

0,48

50.145.727

0,49

Not Detailed Current Assets

0

0,00

0

0,00

Cash and Banks

6.123.634

0,06

7.743.929

0,08

Marketable Securities

0

0,00

0

0,00

Account Receivable

16.151.068

0,16

15.727.877

0,15

Other Receivable

333.746

0,00

328.311

0,00

Inventories

20.889.331

0,21

20.625.756

0,20

Advances Given

0

0,00

0

0,00

Accumulated Construction Expense

0

0,00

91.699

0,00

Other Current Assets

4.507.536

0,05

5.628.155

0,06

NON-CURRENT ASSETS

51.503.838

0,52

51.576.650

0,51

Not Detailed Non-Current Assets

0

0,00

0

0,00

Long-term Receivable

26.449

0,00

26.708

0,00

Financial Assets

0

0,00

0

0,00

Tangible Fixed Assets (net)

48.861.585

0,49

48.593.463

0,48

Intangible Assets

470.077

0,00

576.854

0,01

Deferred Tax Assets

1.942.298

0,02

2.179.033

0,02

Other Non-Current Assets

203.429

0,00

200.592

0,00

TOTAL ASSETS

99.509.153

1,00

101.722.377

1,00

CURRENT LIABILITIES

31.232.177

0,31

33.621.595

0,33

Not Detailed Current Liabilities

0

0,00

0

0,00

Financial Loans

17.779.657

0,18

22.023.259

0,22

Accounts Payable

11.059.762

0,11

9.227.574

0,09

Loans from Shareholders

0

0,00

0

0,00

Other Short-term Payable

1.263.894

0,01

749.118

0,01

Advances from Customers

0

0,00

0

0,00

Accumulated Construction Income

0

0,00

101.407

0,00

Taxes Payable

0

0,00

116

0,00

Provisions

0

0,00

171.078

0,00

Other Current Liabilities

1.128.864

0,01

1.349.043

0,01

LONG-TERM LIABILITIES

26.177.560

0,26

25.632.122

0,25

Not Detailed Long-term Liabilities

0

0,00

0

0,00

Financial Loans

19.909.278

0,20

19.104.574

0,19

Securities Issued

0

0,00

0

0,00

Long-term Payable

0

0,00

0

0,00

Loans from Shareholders

0

0,00

0

0,00

Other Long-term Liabilities

4.536.680

0,05

4.560.430

0,04

Provisions

1.731.602

0,02

1.967.118

0,02

STOCKHOLDERS' EQUITY

42.099.416

0,42

42.468.660

0,42

Not Detailed Stockholders' Equity

0

0,00

0

0,00

Paid-in Capital

30.000.000

0,30

30.000.000

0,29

Cross Shareholding Adjustment of Capital

0

0,00

0

0,00

Inflation Adjustment of Capital

1.865.909

0,02

1.865.909

0,02

Equity of Consolidated Firms

283.373

0,00

333.356

0,00

Reserves

769.827

0,01

734.077

0,01

Revaluation Fund

15.792.384

0,16

15.723.532

0,15

Accumulated Losses(-)

-6.419.754

-0,06

-6.612.077

-0,07

Net Profit (loss)

-192.323

0,00

423.863

0,00

TOTAL LIABILITIES AND EQUITY

99.509.153

1,00

101.722.377

1,00

 

REMARKS ON FINANCIAL STATEMENT

:

The financial statements of 2009, 2010, 2011, 2012 and 01.01.-31.03.2013 have been prepared by the consolidation of the financial statements of the following firms: Gersan Elektromekanik Ve Insaat Sanayi Ticaret A.S. (70 %) and Gersan R-Zao (90 %).

 

 

INCOME STATEMENTS

 

 

(2009) TL

 

(2010) TL

 

(2011) TL

 

Net Sales

43.320.803

1,00

55.956.467

1,00

103.552.390

1,00

Cost of Goods Sold

27.814.434

0,64

48.387.815

0,86

94.195.321

0,91

Gross Profit

15.506.369

0,36

7.568.652

0,14

9.357.069

0,09

Operating Expenses

12.612.150

0,29

9.942.924

0,18

9.981.747

0,10

Operating Profit

2.894.219

0,07

-2.374.272

-0,04

-624.678

-0,01

Other Income

2.359.332

0,05

4.425.447

0,08

5.915.314

0,06

Other Expenses

0

0,00

0

0,00

0

0,00

Financial Expenses

2.855.090

0,07

4.405.726

0,08

11.667.251

0,11

Minority Interests

0

0,00

-55.364

0,00

103.668

0,00

Profit (loss) of consolidated firms

98.721

0,00

0

0,00

0

0,00

Profit (loss) Before Tax

2.497.182

0,06

-2.409.915

-0,04

-6.272.947

-0,06

Tax Payable

416.258

0,01

0

0,00

0

0,00

Postponed Tax Gain

47.667

0,00

-35.609

0,00

242.107

0,00

Net Profit (loss)

2.128.591

0,05

-2.445.524

-0,04

-6.030.840

-0,06

 

 

 

(2012) TL

 

(01.01-31.03.2013) TL

 

Net Sales

85.034.619

1,00

20.197.650

1,00

Cost of Goods Sold

74.537.921

0,88

16.547.545

0,82

Gross Profit

10.496.698

0,12

3.650.105

0,18

Operating Expenses

10.564.867

0,12

4.030.330

0,20

Operating Profit

-68.169

0,00

-380.225

-0,02

Other Income

5.279.548

0,06

1.477.627

0,07

Other Expenses

0

0,00

0

0,00

Financial Expenses

6.401.918

0,08

905.278

0,04

Minority Interests

97.754

0,00

-49.983

0,00

Profit (loss) of consolidated firms

0

0,00

0

0,00

Profit (loss) Before Tax

-1.092.785

-0,01

142.141

0,01

Tax Payable

0

0,00

115

0,00

Postponed Tax Gain

900.462

0,01

281.837

0,01

Net Profit (loss)

-192.323

0,00

423.863

0,02

 

 

FINANCIAL RATIOS

 

 

(2009)

(2010)

(2011)

(2012)

(01.01-31.03.2013)

LIQUIDITY RATIOS

 

Current Ratio

2,53

1,60

1,58

1,54

1,49

Acid-Test Ratio

1,52

0,94

0,65

0,72

0,71

Cash Ratio

0,65

0,56

0,28

0,20

0,23

ASSET STRUCTURE RATIOS

 

Inventory/Total Assets

0,10

0,10

0,19

0,21

0,20

Short-term Receivable/Total Assets

0,25

0,11

0,12

0,17

0,16

Tangible Assets/Total Assets

0,26

0,51

0,46

0,49

0,48

TURNOVER RATIOS

 

Inventory Turnover

8,86

6,55

4,74

3,57

0,80

Stockholders' Equity Turnover

2,22

1,84

2,83

2,02

0,48

Asset Turnover

1,44

0,79

1,01

0,85

0,20

FINANCIAL STRUCTURE

 

Stockholders' Equity/Total Assets

0,65

0,43

0,36

0,42

0,42

Current Liabilities/Total Assets

0,28

0,30

0,34

0,31

0,33

Financial Leverage

0,35

0,57

0,64

0,58

0,58

Gearing Percentage

0,54

1,32

1,81

1,36

1,40

PROFITABILITY RATIOS

 

Net Profit/Stockholders' Eq.

0,11

-0,08

-0,17

0,00

0,01

Operating Profit Margin

0,07

-0,04

-0,01

0,00

-0,02

Net Profit Margin

0,05

-0,04

-0,06

0,00

0,02

Interest Cover

1,87

0,45

0,46

0,83

1,16

COLLECTION-PAYMENT

 

Average Collection Period (days)

59,94

49,19

43,11

68,49

280,81

Average Payable Period (days)

42,11

90,33

57,96

53,42

200,75

WORKING CAPITAL

12930526,00

12660027,00

20055228,00

16773138,00

16524132,00

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.60.80

UK Pound

1

Rs.91.95

Euro

1

Rs.80.36

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.