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Report Date : |
26.12.2013 |
IDENTIFICATION DETAILS
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Name : |
KGS
SOURCING LTD. |
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Formerly Known As : |
REDCATS ASIA LTD. |
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Registered Office : |
20/F., Lu Plaza, |
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Country : |
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Date of Incorporation : |
17.01.1997 |
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Com. Reg. No.: |
21144788 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
· Importer and Exporter of Garments, home furnishings, leisure and household goods subject is the sourcing office of Home
Shopping Division of Kering Group. |
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No. of Employees : |
30 (Company) 33,439 (Group) |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
Hong Kong |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Hong Kong ECONOMIC OVERVIEW
Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong levies excise duties on only four commodities, namely: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 34.9 million in 2012, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983.
|
Source : CIA |
KGS SOURCING LTD.
[Formerly Known as REDCATS ASIA LTD.]
20/F., Lu Plaza, 2 Wing Yip Street, Kwun Tong, Kowloon, Hong Kong.
PHONE: 852-2316 2628, 2628 1898
FAX: 852-2396 8537, 2628 1803
E-MAIL: webmaster@redcats.com
Managing Director: Mr. Wee Poh Gek, Glenda
Incorporated on: 17th January, 1997.
Organization: Private Limited Company.
Capital: Nominal: HK$10,000.00
Issued: HK$10,000.00
Business Category: Garment and Household Accessory Trader.
Kering Group Sales: €9,736.3 million (Year ended 31-12-2012)
Company Employees: 30.
Group Employees: 33,439. (Year ended 31-12-2012)
Main Dealing Banker: BNP Paribas, Hong Kong Branch.
Banking Relation: Satisfactory.
Registered Head Office:-
20/F., Lu Plaza, 2 Wing Yip Street, Kwun Tong, Kowloon, Hong Kong.
Asia Offices:-
Shanghai Office
9/F., Bank of China Tower, 200 Mid Yin Cheng Road, Pudong New Area,
Shanghai, China 200120.
Tel: (86) 21 5037 2511
Fax: (86) 21 5037 2461, 5037 2462,
5037 2463
Qingdao Office
Room C-E, 16/F., Everbright International Financial Centre, 67 Hongkong
West Road, Qingdao, China 266071.
Tel: (86) 532 389 0036 (6 lines)
Fax: (86) 532 389 0038
India Liaison Office
10/F., Tower B, DLF Cyber Greens, DLF City Phase III, Gurgaon -
122 022, India.
Tel: (91) 124 2358936 / 37 / 38
Fax: (91) 124 2355758
Dhaka Liaison Office
#101 (2/F.), R.M. Centre, Gulshan Avenue, Dhaka 1212, Bangladesh.
Tel: (880) 2 881 4465, 881 7662, 988
6795
Fax: (880) 2 988 7931
Holding Company:-
Redcats S.A., France.
Ultimate Holding Company:-
Kering S.A., France.
Associated Companies:-
Redcats Group of
Companies
· KGS Souring (Shanghai) Ltd., China.
Redcats
(Brands) Ltd., UK.
Redcats
AS, Norway.
Redcats
Asia Global Sourcing Services Ltd., Hong Kong.
Redcats
Management Consulting (Shanghai) Co. Ltd., China.
Redcats
Beteiligung GmbH, Austria.
Redcats
Espana SAU, Spain.
Redcats
Finance AB, Sweden.
Redcats
Finance Ltd., UK.
Redcats
India Private Ltd., India.
Redcats
International Holding BV, Netherlands.
Redcats
Italy S.r.l., Italy.
Redcats
Nordic AB, Sweden.
Redcats
Suisse S.A., Switzerland.
Redcats
Sverige AB, Sweden.
Redcats
UK plc, UK.
Redcats
USA Canada Holding Inc., Canada.
Redcats
USA Drop Ship Inc., US.
Redcats
USA Gift Cards, US.
Redcats
USA Inc., US.
Redcats
USA LLC., US.
Redcats
USA LP., US.
Redcats
USA Management Services Lp., US.
Associated with:-
Kering Group of
Companies
21144788
0591120
· Managing Director: Mr. Wee Poh Gek, Glenda
Contact
Person: Mr. Ian Whimarsh
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
(As per registry
dated 17-11-2013)
|
Name |
|
No.
of shares |
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Redcats S.A. 110, rue
de Blanchemaille, 59100 Roubaix, France. |
|
10,000 ===== |
(As per registry
dated 17-01-2013)
|
Name (Nationality) |
Address |
|
FONG Kit Shan,
Priscilla |
1/F., 19 Sun Lau Street, Sha
Tau Kok, New Territories, Hong Kong. |
|
KWOK Chi Kueng |
Emperor Garden, Yung Chi, 7/F.,
Zhang Mu Tou, Dongguan, Guangdong, China. |
|
WEE Poh Gek,
Glenda |
106 Kampong Java Road,
Singapore 228871. |
(As per registry
dated 03-09-2013)
|
Name |
Address |
Co.
No. |
|
Tricor Secretaries Ltd. |
Level 54, Hopewell Centre, 183 Queen’s Road East, Hong
Kong. |
0014900 |
The subject was incorporated on 17th January, 1997 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Grand Gold Holdings Ltd., name changed to Redoute Asia Ltd. on 8th August, 1997, changed Redcats Asia Ltd. on 17th March, 2000 and further to the present style on 16th October, 2013.
Formerly the subject was located at 21/F., One Mong Kok Road Commercial Centre, 1 Mong Kok Road, Mongkok, Kowloon, Hong Kong, moved to the present address in November 2000.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Importer and Exporter.
Lines: Garments, home furnishings, leisure and household goods.
Company Employees: 30.
Group Employees: 33,439. (Year ended 31-12-2012)
Commodities Imported: Imported from China and other Asian countries, and acquired in Hong Kong.
Markets: France, other European countries, US, etc.
Kering Group Sales: €8,062.3 million (Year ended 31-12-2011)
€9,736.3 million (Year ended 31-12-2012)
Redcats Group Sales: €3,047.9 million (Year ended 31-12-2011)
€3,016.9 million (Year ended 31-12-2012)
Terms/Sales: As per contracted.
Terms/Buying: Various terms.
Nominal Share Capital: HK$10,000.00 (Divided into 10,000 shares of HK$1.00 each)
Issued Share Capital: HK$10,000.00
Kering Group Net
Income Attributable to Owners:-
· € 986.3 million (Year ended 31-12-2011)
€1,048.2
million (Year ended 31-12-2012)
Profit or Loss: Operation is profitable.
Condition: Business is active.
Facilities: Making active use of general banking facilities.
Payment: So far so good.
Commercial Morality: Satisfactory.
Banker: BNP Paribas, Hong Kong Branch.
Standing: Good.
Having issued 10,000 ordinary shares of HK$1.00 each, KGS Sourcing Ltd. is a private limited company wholly-owned by Redcats S.A. [Redcats], a France-based firm. The ultimate holding company of the subject is PPR S.A. [PPR], also a France-incorporated company. Now, PPR S.A. has changed name to Kering S.A. [Kering/Kering Group].
The subject is a buying office.
Redcats is a core member of the Redcats Group of which head office is in Paris, France. The Group is retailing fashions, home furnishings, accessories, leisure and household goods in Europe and the United States. The Redcats Group will be sold by Kering Group step by step in future. Now, Redcats USA’s operations were sold in February 2013.
In Hong Kong, the
subject is sourcing and marketing the following commodities:-
Product/Service |
Product/Service Remarks |
|
Suits and Jackets –
Men’s |
From China, Japan, South East Asia and other Asian countries |
|
Jacket – Men
(Excluding Ski-Jacket) |
From Hong Kong and China |
|
Suit – Men |
From Hong Kong and China |
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Suits and Jackets –
Women’s |
From China, Japan, South East Asia and other Asian countries |
|
Jacket – Ladies
(Excluding Ski-Jacket) |
From Hong Kong and China |
|
Suit – Ladies |
From Hong Kong and China |
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Children’s Wear |
From China, Japan, South East Asia and other Asian countries |
|
Anoraks, Parkas and
Carcoats |
From Hong Kong and China |
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Blouses |
From China, Japan, South East Asia and other Asian countries |
|
Coats |
From China, Japan, South East Asia and other Asian countries |
|
Jeans |
From China, Japan, South East Asia and other Asian countries |
|
Down Filled Jackets
and Coats |
From China, Japan, South East Asia and other Asian countries |
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Dresses and Skirts |
From China, Japan, South East Asia and other Asian countries |
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Raincoats |
From Hong Kong and China |
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Shirts |
From China, Japan, South East Asia and other Asian countries |
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Trousers |
From China, Japan, South East Asia and other Asian countries |
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Slacks |
From China, Japan, South East Asia and other Asian countries |
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Cardigan, Sweater
and Pullover |
From China, Japan, South East Asia and other Asian countries |
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Knitted Garments |
From China, Japan, South East Asia and other Asian countries |
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Tee and Sweat Shirts |
From China, Japan, South East Asia and other Asian countries |
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Underwear – Men’s |
From China, Japan, South East Asia and other Asian countries |
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Underwear – Women’s |
From China, Japan, South East Asia and other Asian countries |
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Underwear – Silk |
From Hong Kong and China |
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Underwear –
Children’s |
From China, Japan, South East Asia and other Asian countries |
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Nightwear and
Pyjamas |
From China, Japan, South East Asia and other Asian countries |
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Sport Suits |
From China, Japan, South East Asia and other Asian countries |
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Winter Sports
Apparel |
From China, Japan, South East Asia and other Asian countries |
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Belts |
From China, Japan, South East Asia and other Asian countries |
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Hosiery |
From China, Japan, South East Asia and other Asian countries |
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Footwear – Leather |
From China, Japan, South East Asia and other Asian countries |
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Sport Shoes |
From China, Japan, South East Asia and other Asian countries |
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Handbags |
From China, Japan, South East Asia and other Asian countries |
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Games and Toys –
Electronic |
From Hong Kong and China |
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Games and Toys –
Non-Electronic |
From Hong Kong and China |
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Battery Operated
Toys |
From Hong Kong and China |
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Soft Toys |
From Hong Kong and China |
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Toys, Others |
From Hong Kong and China |
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Furniture – Western
Style |
From Hong Kong and China |
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Babies’ Wear |
From China, Japan, South East Asia and other Asian countries |
|
Floor Covering |
From Hong Kong and China |
The subject is responsible for exporting commodities to Western Europe, Scandinavia and North America.
The subject is the sourcing office of Home Shopping Division of Kering Group.
Kering, through its subsidiaries, is engaged in the design, manufacture, and distribution of apparel and accessories worldwide. The company’s Luxury segment designs, manufactures, and distributes luxury products, which primarily include handbags, small leather goods, luggage, shoes, men and women’s ready‑to-wear, silks, watches, fine jewellery, eyewear, lingerie, fragrances and cosmetics, furniture, kids wear, and other accessories under the brand names of Gucci, Bottega Veneta, Yves Saint Laurent, Alexander McQueen, Balenciaga, Brioni, Christopher Kane, Qeelin, Stella McCartney, Sergio Rossi, Boucheron, Girard-Perregaux, and JeanRichard through a network of directly-operated stores, franchisees, department stores, multi-brand boutiques, and e-commerce sites. Its Sport and Lifestyle segment designs and produces various sport and lifestyle products, such as T-shirts, track jackets, bags, boardshorts, polo shirts, denim, swim, outerwear, and sandals; footwear; sunglasses, snow goggles, backpacks, luggage, and accessories under the Puma, Volcom, Cobra, Electric, and Tretorn brand names. This segment also produces and sells music and films. The company was formerly known as PPR SA and changed its name to Kering SA in June 2013. Kering SA was founded in 1963 and is headquartered in Paris, France.
The Redcats Group was originally founded by Mr. Joseph Pollet in Roubaix, France, in 1873. Now, it is part of the Kering.
For the year ended 31st December, 2012, the sales of the Group amounted to €9,736.3 million (2011: €8,062.3 million); net income attributable to owners amounted to €1,048.2 million (2011: €986.3 million).
The sales of the Redcats Group became insignificant.
For the year ended 31st December, 2012, Kering Group had 33,439 employees in total while 58.2% are women.
Having a history of over sixteen years in Hong Kong and fully backed up by its parent, the subject’s business is rather active and lucrative.
On the whole, in view of the subject’s background, parentage and lines of business, consider it good for normal business engagements.
DIAMOND INDUSTRY – INDIA
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From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
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The achievement of the Indian diamond industry was possible only due to
combination of the manufacturing skills of the Indian workforce and the
untiring and unflagging efforts of the Indian diamantaires, supported by
progressive Government policies.
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The area of study of family owned diamond businesses derives its
importance from the huge conglomerate of family run organizations which operate
in the diamond industry since many generations.
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Some of the basic traits of family run business enterprises include spirit
of entrepreneurship, mutual trust lowers transaction costs, small, nimble and
quick to react, information as a source of advantage and philanthropy.
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Family owned diamond businesses need to improve on many fronts including
higher standard of corporate governance, long-term performance – focused
strategies, modern management and technology.
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Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import – export,
inter-company transactions, financially assisted by banks. In the process,
several public sector banks lost several hundred million rupees. They mostly
diverted borrowed money for diamond business into real estate and capital
markets.
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Excerpts from Times of India dated 30th October 2010 is as
under –
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Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
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The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.87 |
|
|
1 |
Rs.101.10 |
|
Euro |
1 |
Rs.84.65 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.