MIRA INFORM REPORT

 

 

Report Date :

12.02.2013

 

IDENTIFICATION DETAILS

 

Name :

WOONGJIN CHEMICAL CO., LTD.

 

 

Registered Office :

287, Gongdan 2-dong, Gumi-si, Gyeongsangbuk-do, Korea 730-906

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2012

 

 

Date of Incorporation :

01.07.1972

 

 

Com. Reg. No.:

515-81-00097

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Man-Made Fiber Fabrics

 

 

No. of Employees :

1,184

 

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

(31.03.2011)

Current Rating

(30.06.2012)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

SOUTH KOREA - ECONOMIC OVERVIEW

 

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and currently is among the world's 20 largest economies. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea''s development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. With the global economic downturn in late 2008, South Korean GDP growth slowed to 0.3% in 2009. In the third quarter of 2009, the economy began to recover, in large part due to export growth, low interest rates, and an expansionary fiscal policy, and growth was 3.6% in 2011. In 2011, the US-South Korea Free Trade Agreement was ratified by both governments and is projected to go into effect in early 2012. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP.

Source : CIA


Basic Information

 

Company Name

WOONGJIN CHEMICAL CO., LTD.

(Ex. English Company Name : SAEHAN INDUSTRIES INC.)

(Korean Company Name : “웅진케미칼()”)

Registered Address

287, Gongdan 2-dong, Gumi-si, Gyeongsangbuk-do, Korea

Zip Code

730-906

Tel

+82-54-469-4114

Fax

+82-54-469-4444

E-mail

webmaster@saehan.co.kr

Website

www.wjchemical.com

Trading Address

23th Fl, Kukdong Bldg, 60-1, Chungmuro 3-ga, Jung-gu, Seoul, Korea

Tel

+82-2-3279-7000

Fax

+82-2-3279-7062

Other Address-Gumi 2nd Factory

309, Gongdan-dong, Gumi, Gyungsangbuk-do, Korea

Tel

+82-54-480-3000

Fax

+82-54-480-3002

Other Address-Anseong Factory

58, Singeonji-dong, Anseong-si, Gyeonggi-do, Korea

Tel

+82-31-677-2831~4

Fax

+82-31-677-2835

Other Address-Yugu Factory

688, Yugu-ri, Yugu-eup, Gongju, Chungcheongnam-do, Korea

Tel

+82-41-840-6100

Fax

+82-41-840-6119

Other Address-R&D Institute

F3 906-19, Iui-dong Yeongtong-dong Suwon-si Gyeonggi-do, Korea

Tel

+82-31-546-7393

Type

Export/Import

Industry

Manufacture of Man-Made Fiber Fabrics

  Main Business

Yarn, Fabrics, PET Sheet, Filter, Chip

  Sub Business

 

Established (mm/dd/yyyy)

07/01/1972

The Subject owns the Gumi 1st and 2nd Factories and Yugu Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Yarns(11151700

Sell

Blank tapes(43202002)

Sell

Magneto Optical MO disks(43202006)

Sell

Cotton fibers(11151507)

Sell

Resins(13111000)

Sell

Filters(40161500)

Sell

Concrete pilings(30102802)

Sell

Polyester films(13111210)

Sell

Blank video tapes(45131604)

Sell

Fabrics and leather materials(11160000)

Sell

Water purification equipment(47101514)

Sell

Sheet(30102500)

 

 

CEO’s

 

Name

Park Chan-Koo

Address

-

Date of Birth

-

Title

President & CEO

Sex

Male

Nationality

Korean

03/18/2011 Park Chan-Koo has been inaugurated as a CEO.

 

 

Profiles

 

Capital (KRW)

237,230,757,000

Employees

1,184

Formation

Listed Company (Korea Stock Exchange : 008000 ) as of 06/30/1977

A Company of WOONGJIN BUSINESS GROUP

Bank Details

Woori Bank

Kyungnam Bank

Korea Exchange Bank

Korea Development Bank

Corporate Registered No.

174811-0000151

Business Registered No.

515-81-00097

Permit & Licenses

11/1993 ISO 9002

09/1994 ISO 9001

12/1995 ISO 9002-Kyungsan factory

12/1996 ISO 14001 Gumi 1 Factory

12/1997 ISO 14001-Kyungsan factory

 

Int’l Trade No.: 875527

Shareholder Position

Name

Shares

%

WOONGJIN HOLDINGS CO., LTD.(110111-0346745)

214,644,092

46.30

TREASURY STOCK

3,931,641

0.85

YOON HYUNG-DUCK

23,007,647

4.96

YOON SAE-BOM

22,969,646

4.95

OTHERS

199,085,488

42.94

TOTAL

463,638,514

100.00

Company History

07/01/1972 Incorporated as Cheil Synthetics Textiles Co. Ltd

02/28/1989 Changed company name to Cheil Synthetics Inc.

08/31/1995 Separated from Samsung Business Group

02/28/1997 Changed company name to SAEHAN INDUSTRIES INC

10/30/1999 Acquired SAEHAN CONSTRUCTION CO., LTD.

03/2000 Established DSI, a joint venture with DuPont /

03/2000 Received ‘IR52 Award’ for Semiconductor lead fixing tape

06/2000 Received ‘Defense Quality System Award’ in the textile area

02/2002 Received ‘Export-to-Japan Merit Award’ from Korea Textile Trade Association

10/2002 Received ‘Korean World-class Product Award’ for high bulky hollow fiber and fire retardant fiber /

10/2002 Received ‘Prime Minister’s Award’ for reverse osmosis membrane for seawater desalination at the New Tech Korea 2002

03/2003 Received ‘Korean World-class Product Award’ for Suede stretch fabric, fouling resistant reverse osmosis membrane

11/2003 Received ‘Korean World-class Product Award’ for Polyester/rayon blended stretch fabric

07/2005 Received ‘Korean World-class Product Award’ for polyester micro corduroy

11/2005 Received ‘Commerce Industry & Energy Minister Award’ for polyester micro corduroy

06/2006 Completed Gumi Plant

10/2006 Received ‘Commerce Industry & Energy Minister Award’ at the 2006 Korea Technology Grand Prize for High functional nano membranes.

11/2006 Received ‘2006 Gyeongsangbuk-do Energy Saving Best Prize’ at Gumi Plant.

03/21/2008 Changed the Company name to Woongjin Chemical Co., Ltd.

06/30/2008 Acquired Yugu Filer Factory from WOONGJIN COWAY CO., LTD.(110111-0626501)

03/20/2009 Decided to spin off the par value to 500 KRW from 5,000 KRW

01/2010 Moved to the present trading address from 254-8, Gongdeok-dong, Mapo-gu, Seoul, Korea

12/01/2012 Split off the company; existing company(WOONGJIN CHEMICAL CO., LTD.) and newly established company(Woongjin Textile Co., Ltd.)

 

(*) History of Corporate Work-Out Procedure

05/18/2000 Applied to Corporate Work-Out Procedure

06/02/2000 Decided to Corporate Work-Out Procedure at the 2nd meeting of Creditors

10/18/2002 Signed the agreement on the Corporate Work-Out Procedure between the creditors of financial institutes and the Subject Company

12/30/2004 Postponed the payment of debts until 12/31/2006 based on the agreement on the 3rd Corporate Work-Out Procedure

12/28/2006 Postponed the payment of debts until 06/30/2007 based on the agreement on the 4th Corporate Work-Out Procedure

04/05/2007 Postponed the payment of debts until 12/31/2008 based on the agreement on the 5th Corporate Work-Out Procedure

01/25/2008 Completed the Corporate Work-Out Procedure

03/21/2008 Changed company name to the present name

06/30/2008 Transferred Water Treatment Business to WOONGJIN COWAY CO., LTD.(110111-0626501)

06/30/2008 Acquired Yugu Filter Factory from WOONGJIN COWAY CO., LTD.(110111-0626501)

03/20/2009 Spin off the par value to 500 KRW from 5,000 KRW

 

 


Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education & Career

President & CEO

Mr.

Park Chan-Koo

Korean

1963.07.31

Ex. President of IEON GROUP

Director

Mr.

Park Joon-Woo

Korean

1972.12

-

Director

Mr.

Ahn Ji-Yong

Korean

1972.01.19

Yonsei University, Korea

Director

Mr.

Hong Joon-Ki

Korean

1958.10.21

Ex. President of WOONGJIN COWAY CO., LTD.

Sr. Executive Director

Mr.

Shin Kwang-Soo

Korean

1969.01.05

President & CEO of Woongjin Holdings Co., Ltd.

Executive Director

Mr.

Park Joon-Woo

Korean

1972.12.05

-

Outside Director

Mr.

Kang Yong-Soo

Korean

1953.08.20

Present Prof., of Hanyang University, Korea

Outside Director

Mr.

Yoon Yang-Yong

Korean

1955.09.03

President of Arter Cosmetics Co., Ltd.

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)09/2012

784,682,211,109

799,859,028,205

11,543,590,132

(*)2011

1,083,493,108,408

739,882,854,953

4,015,971,868

(*)2010

911,193,873,590

710,069,168,417

60,257,241,522

2009

803,174,786,065

620,741,739,445

10,182,466,223

2008

833,144,577,137

581,733,000,906

2,188,321,316

2007

738,215,214,924

597,081,062,377

(-)59,139,312,104

2006

716,754,465,391

886,459,599,104

(-)91,438,625,923

2005

744,435,173,207

1,004,443,504,799

5,506,215,130

2004

742,625,976,438

1,122,944,383,321

15,122,739,623

(*)Figures are based on the K-IFRS Accounting System.

 

 

Financial Description

 

Authorized Capital(KRW)

500,000,000,000

Paid-Up Capital(KRW)

237,230,757,000

Total Issues Shares

474,461,514

 


 

Balance Sheet

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

799,859,028,205

739,882,854,953

710,069,168,417

Current Assets

326,119,591,967

320,457,269,951

310,651,229,958

Cash & Cash Equivalents

64,350,993,690

54,415,542,704

85,314,301,068

Current Financial Instruments

456,887,410

101,915,829

1,998,411,301

Current Portion of Derivatives

 

27,159,439

 

Other Financial Instruments

 

142,975,000

10,640,000

Trade Receivables

137,425,570,210

139,180,415,182

123,800,803,495

Other Receivables

6,512,641,846

9,989,693,416

7,564,526,098

Accrued Income Tax

 

161,441,451

252,213,130

Other Current Assets

8,183,458,667

4,000,325,567

3,251,852,795

Inventories

109,190,040,144

112,437,801,363

88,458,482,071

Non-Current Assets

473,739,436,238

419,425,585,002

399,417,938,459

Non-Current Financial Instruments

1,000,000,000

400,000,000

 

Current Portion of Derivatives

5,267,299

94,049,018

 

Marketable Financial Instruments

723,235,036

723,235,036

2,545,767,994

Other Financial Instruments

 

2,538,410,000

2,679,360,000

Other Receivables

7,640,504,159

8,164,036,907

7,087,209,991

Investment_Subsidiaries

39,636,352,936

39,636,352,936

39,636,352,936

Investment_Related Companies

4,065,702,065

4,065,702,065

4,065,702,065

Deferred Income Tax Assets

16,108,204,027

17,879,451,635

13,389,769,294

Other Non-Current Assets

2,166,852,500

166,852,500

166,852,500

Tangibles

380,296,138,766

331,168,445,462

321,817,953,355

Investment_Real Estates

3,039,552,388

3,335,609,984

3,745,526,197

Intangibles

19,057,627,062

11,253,439,459

4,283,444,127

Total Liabilities

481,207,786,158

426,996,552,873

388,639,510,247

Current Liabilities

366,971,083,918

282,534,848,325

294,739,904,929

Current Portion of Derivatives

527,343,328

364,151,997

619,253,641

Other Current Financial Debts

234,901,422

329,595,729

297,650,561

Trade Payables

97,199,857,246

97,995,817,542

116,882,604,731

Other Payables

52,395,334,848

54,920,567,739

47,965,938,117

Short-Term Borrowings

165,969,749,511

91,694,224,705

86,311,688,000

Current Portion of Debentures

30,000,000,000

 

 

Current Portion of Long-Term Debts

12,437,161,170

30,105,222,691

35,016,187,314

Accrued Income Taxes

963,142,299

 

 

Current Portion of Provisions

1,078,888,522

970,966,670

964,735,465

Other Current Liabilities

6,164,705,572

6,154,301,252

6,681,847,100

Non-Current Liabilities

114,236,702,240

144,461,704,548

93,899,605,318

Derivatives

112,557,347

149,960,646

356,075,395

Other Non-Current Non-Financial Debts

293,202,035

581,246,390

783,469,982

Other Non-Current Liabilities

6,513,551,352

5,781,231,784

6,598,582,160

Long-Term Borrowings

32,200,000,000

77,000,779,681

76,685,133,262

Debentures

61,096,890,929

51,404,270,601

 

Confirmed Salaries

13,534,988,347

9,058,703,216

8,956,883,209

Provisions

485,512,230

485,512,230

519,461,310

Capital Stock

237,230,757,000

237,230,757,000

237,230,757,000

Profit Surplus

83,289,607,834

84,438,186,779

81,891,517,440

Installments

-522,016,244

-1,117,172,561

-739,299,409

Others

-1,347,106,543

-7,665,469,138

3,046,683,139

Total Equity

318,651,242,047

312,886,302,080

321,429,658,170

Liab. & Shareholder’s Equity

799,859,028,205

739,882,854,953

710,069,168,417

 

 

Income Statement

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Sales

784,682,211,109

1,083,493,108,408

911,193,873,590

Cost of Sold Goods

682,500,461,043

952,856,618,775

776,790,985,189

Gross Profit

102,181,750,066

130,636,489,633

134,402,888,401

Selling & Admin. Expenses

-78,888,321,116

-95,236,453,417

-84,676,928,887

Other Operating Income

12,726,112,071

24,205,815,477

22,591,620,048

Other Operating Expenses

-13,199,361,070

-48,591,682,111

-21,916,769,538

Operating Income

22,820,179,951

11,014,169,582

50,400,810,024

Finance Income

2,643,962,668

2,935,517,271

6,774,281,121

Finance Expenses

-10,708,791,166

-12,710,373,450

-15,764,695,006

Other Non-Operating Income

 

-1,205,396,945

 

Income Before Taxes

14,755,351,453

33,916,458

41,410,396,139

Income Taxes Expenses

3,211,761,321

-3,982,055,410

-18,846,845,383

Net Income

11,543,590,132

4,015,971,868

60,257,241,522

 

 

Cash Flows

 

Unit : Korean Won

01/01/2012~09/30/2012

As of 12/31/2011

As of 12/31/2010

Cash Flows from Operating

47,122,537,845

639,885,219

60,638,841,072

-Net Income

11,543,590,132

4,015,971,868

60,257,241,522

-Exp. without Cash Outflow

44,156,087,282

80,862,651,871

49,647,570,774

-Revenue without Cash Inflows

-4,985,387,959

-11,071,890,433

-30,763,761,280

-Changes in Asset/ & Liability

-3,582,554,644

-73,257,619,766

-18,491,703,094

-Income Taxes

-9,196,966

90,771,679

-10,506,850

Cash Flows from Investing

-77,885,124,641

-62,959,242,610

-32,227,656,751

-Cash Inflow from Investing

50,861,028,724

10,800,082,021

35,567,865,611

-Cash Outflows for Investing

-128,746,153,365

-73,759,324,631

-67,795,522,362

Cash Flows from Financing

40,952,319,090

31,493,702,361

-18,269,174,866

-Cash Inflows from Financing

167,053,684,158

173,237,436,509

243,771,000,912

-Cash Outflows from Financing

-126,101,365,068

-141,743,734,148

-262,040,175,778

Increase/Decrease in Cash

10,189,732,294

-30,825,655,030

10,142,009,455

Cash at the Beginning of Year

54,415,542,704

85,314,301,068

74,870,014,337

Cash at the End of Year

64,350,993,690

54,415,542,704

85,314,301,068

 

 

Products, Technologies, Services Description

 

Main Products & Services

Polyester Filament

Polyester Staple Fiber

Chip

Textile

Filter

Water Treatment

Sheet

 

Brand Name : ESLON, CSM

Detailed Products Spec.

Products

2009

2008

2007

P S F

214,438

207,068

199,146

P   F

63,000

63,929

65,126

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Competitors

HUVIS CORPORATION(110111-2102070)

HYOSUNG CORPORATION(110111-0030497)

DAEHAN SYNTHETIC FIBER CO., LTD.(110111-0012437)

 

 


Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

WOONGJIN LOGISTICS CO., LTD.(184511-0004511)

(64.74% held by the subject company)

 

SAEHAN INFORMATION SYSTEM INC.(110111-1369465)

(30.0% held by the subject company)

 

WOONGJIN HOLDINGS CO., LTD.(110111-0346745)

WOONGJIN COWAY CO., LTD.(110111-0626501)

WOONGJIN THINKBIG CO., LTD.(284911-0065613)

WOONGJIN CHEMICAL CO., LTD(174811-0000151)

WOONGJIN FOOD CO., LTD.(115411-0000192)

BOOXEN CO., LTD(115611-0011369)

WOONGJIN HAPPYALL CO., LTD(110111-18813520

REXFIELD COUNTRY CLUB(131211-0017571)

WOONGJIN BOOKS CO., LTD.(110111-2268294)

WOONGJIN CUCHEN CO., LTD.(284411-0038595)

WOONGJIN CAPITAL CO., LTD(110111-3463950)

WOONGJIN ENERGY. CO., LTD(160111-0214702)

WOONGJIN POLYSILICON CO., LTD.(176011-0055332)

KUKDONG ENGINEERING & CONSTRUCTION CO., LTD.(110111-0027858)

HAPDUK INDUSTRIAL COMPLEX DEVELOPMENT CO., LTD.(110111-3453977)

KYUNG JUNG CO., LTD(110111-3734533)

WOONGJIN SYSTEM & TECHNOLOGY CO., LTD.(110111-3746067)

WOONGJIN PASSONE CO., LTD.(110111-1959183)

RENAISSANCE PRIVATE EQUITY I, L.P.(110113-0012590)

WOONGJIN LUCAS INVESTMENT ADVISOR CO., LTD.(11011-3961475)

LUCAS CONSULTING CO., LTD.(110111-3961475)

WOONGJIN MIRAE ACCOUNTING & TAX ACADEMY CO.,LTD(110111-3475509)

WOONGJIN VINA KOREA CO., LTD.(110111-3905225)

OCEAN SWEETS CO., LTD.(220111-006549)

WOONGJIN COWAY LIVING GOODS CO., LTD.

BEARPORT PUBLISHING COMPANY, INC.

Overseas Office

WOONGJIN CHEMICAL SHANGHAI CO., LTD.

RM.2307, INTERNATIONAL TRADE CENTER, 2200 YANAN RD. (W), SHANGHAI, CHINA 200339

TEL : +86-21-6219-0119 FAX : +86-21-6219-0116

 

QINGDAO OFFICE

RM. 405A, BLOCKB, FULLHOPE PLAZA, NO.12 HONGKONG MIDDLE RD., QINGDAO, SHANDONG, CHINA 266071

TEL : +86-532-502-8522 FAX : +86-532-502-8525

 

TIANJIN WOONGJIN CSM ECOTECH CO., LTD

NO.2 KEYUAN 4ST TEDA(JINNAN) MICRO-ELECTRONICS INDUSTRIAL AREA BALITAI-ZHEN

JINNAN-DISTRICT TIANJIN CHINA.

TEL : +86-22-2612-2264/9472/3039/4000 FAX : +86-22-2612-0588

 

P.T. WOONGJIN TEXTILES

KOREA CENTER, RM.604, 6TH FL., JL. GATOT SUBROTO KAV. 58, JAKARTA SELATAN 12950, INDONESIA

TEL : +62-21-522-3364/5 FAX : +62-21-522-3363

 

WOONGJIN CHEMICAL JAPAN OFFICE

7TH FL., AKASAKA HABITATION BLDG., 1-3-5, AKASAKA, MINATO-KU, TOKYO, 107-0052, JAPAN

TEL : +81-3-5114-5950,1 FAX : +81-3-3583-4361

 

WOONGJIN CHEMICAL HOCHIMIN OFFICE

516 CONG HOA ST. WARD 13, TAN BINH DIST., HOCHIMINH CITY, VIETNAM

TEL : +84-8-106831/2 FAX : +84-8-106-833

 

WOONGJIN CHEMICAL NEW DELHI OFFICE

NO. 203, MOHTA BUILDING, BHIKAJI CAMA PLACE, NEW DELHI-110066, INDIA

TEL : +91-11-4607-5120 FAX : +91-11-4607-4300

 

WOONGJIN CHEMICAL LA OFFICE

18552 MACARTHUR BLVD. #400 IRVINE, CA 92612

TEL : +1-949-922-6377

Subsidiary

WOONGJIN CHEMICAL SHANGHAI CO., LTD

(100.00% held by the subject company)

 

TIANJIN WOONGJIN CSM ECOTECH CO., LTD

(100.00% held by the subject company)

 

P.T. WOONGJIN TEXTILES

(90.34% held by the subject company)

 

WOONGJIN CHEMICAL AMERICA INC.

(100.00% held by the subject company)

Corporate Ownership

WOONGJIN HOLDINGS CO., LTD.(110111-0346745)

Major Shareholders

WOONGJIN HOLDINGS CO., LTD.(110111-0346745)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2012

2011

2010

Export

497,851

695,274

582,831

Domestic

286,831

388,219

328,363

Total

784,682

1,083,493

911,194

The Subject exports to China, Japan, Europe and North America.

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (KRW)

Status

 

Seoul District Court

Tomwoo Apparel Co., Ltd.

The Subject Company

Claim for damages

83,180,000 KRW

Proceeding

 

Seoul District Court

The Subject Company

Tomwoo Apparel Co., Ltd.

Claim for Receivables

102,024,000 KRW

Proceeding

 

 

News Clipping

 

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FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.68

UK Pound

1

Rs.84.84

Euro

1

Rs.71.87

 

 

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

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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.