|
Report Date : |
19.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
KMART AUSTRALIA LIMITED |
|
|
|
|
Formerly Known As : |
K MART PTY. LIMITED |
|
|
|
|
Registered Office : |
C/o WESFARMERS
LIMITED Level 11,
Wesfarmers House 40 The Esplanade Perth Western Australia 6000 |
|
|
|
|
Country : |
Australia |
|
|
|
|
Financials (as on) : |
30.06.2012 (Group Consolidated) |
|
|
|
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Date of Incorporation : |
10.07.1967 |
|
|
|
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Com. Reg. No.: |
004700485 |
|
|
|
|
Legal Form : |
Unlisted Public
Company |
|
|
|
|
Line of Business : |
Owns and
operates a network of discount department stores. |
|
|
|
|
No. of Employees : |
25,500 employees |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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) |
|
Australia |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
AUSTRALIA - ECONOMIC OVERVIEW
Australia's abundant and
diverse natural resources attract high levels of foreign investment and include
extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and
renewable energy sources. A series of major investments, such as the US$40
billion Gorgon Liquid Natural Gas project, will significantly expand the
resources sector. Australia also has a large services sector and is a
significant exporter of natural resources, energy, and food. Key tenets of
Australia''s trade policy include support for open trade and the successful
culmination of the Doha Round of multilateral trade negotiations, particularly
for agriculture and services. The Australian economy grew for 17 consecutive
years before the global financial crisis. Subsequently, the former RUDD
government introduced a fiscal stimulus package worth over US$50 billion to
offset the effect of the slowing world economy, while the Reserve Bank of
Australia cut interest rates to historic lows. These policies - and continued
demand for commodities, especially from China - helped the Australian economy
rebound after just one quarter of negative growth. The economy grew by 1.4%
during 2009 - the best performance in the OECD - by 2.7% in 2010, and by 1.8% in
2011. Unemployment, originally expected to reach 8-10%, peaked at 5.7% in late
2009 and fell to 5.0% in 2011. As a result of an improved economy, the budget
deficit is expected to peak below 4.2% of GDP and the government could return
to budget surpluses as early as 2015. Australia was one of the first advanced
economies to raise interest rates, with seven rate hikes between October 2009
and November 2010. The GILLARD government is focused on raising Australia''s
economic productivity to ensure the sustainability of growth, and continues to
manage the symbiotic, but sometimes tense, economic relationship with China.
Australia is engaged in the Trans-Pacific Partnership talks and ongoing free
trade agreement negotiations with China, Japan, and Korea.
Source
: CIA
Verified Address
Subject name : KMART
AUSTRALIA LIMITED
Other style /
Business name : KMART /
KMART TYRE & AUTO SERVICE
Business address :
Level 3,
690 Springvale Road
Town : Mulgrave
Province : Victoria
Zip/postal code : 3170
Country : Australia
Tel : +61
3 99022000
Fax : +61
3 99022334
Website : www.kmart.com.au
Registered address
: C/o
WESFARMERS LIMITED
Level 11, Wesfarmers House
40 The Esplanade
Town : Perth
Province : Western Australia
Zip/postal code : 6000
Country : Australia
Executive Summary
Date founded or
registered : 10/07/1967
Legal form : Unlisted
Public Company
Chief executive : Gaetano
Alfred Gerrard Russo
Issued & paid
up capital : AUD
340,000,000
Sales turnover : AUD 58,080,000,000
(Group-consolidated 12 months, 30/06/2012)
Net income : AUD
2,126,000,000 (Group-consolidated 12 months, 30/06/2012)
Total fixed assets
: AUD 42,312,000,000
(Group-consolidated 12 months, 30/06/2012)
Line of business : Owns
and operates a network of discount department stores in Australia and New
Zealand under the name KMART and KMART TYRE & AUTO SERVICE.
Staff employed : 25,500
employees (Subject); 200,000 employees (Wesfarmers Group)
Company Analysis
Country risk : Country risk is
minimal
Operation trend : Operational trend is
progressing
Management
experience : Management is
adequately experienced
Financial performance
: Financial performance is
very good
Organization
structure : Organizational
structure is stable
Detrimental : No detrimental found
Payment history : No payment delays noted
Comments : Larger credit can
still be considered. The Subject is well positioned in the market
and the financial stability of the group is positive.
Registry Data
Registration date
: 10/07/1967
Legal form : Unlisted Public
Company
Registration no Australian Company
Number: 004700485
Registered
authority : Australian
Securities and Investments Commission
Fiscal/ Tax no : Australian Business
Number: 73004700485
Registry status : Live/Active
Previous name : K MART AUSTRALIA LTD
COLES KMA LIMITED
K MART (AUSTRALIA) LIMITED
K MART LIMITED
K MART PTY. LIMITED (initial)
Change of legal
form : None reported.
Key Management
Name : Gaetano Alfred Gerrard
Russo
Designation : Chief Executive Officer
Name : Ian Bailey
Designation : Chief Operating Officer
Name : David Graham Matheson
Designation : Chief Operating Officer - Store
and Supply Chain Operations
Name : Sam Marrari
Designation : National Operations Manager -
Store Support and Planning Australia
Appointments
Name : Ian Bailey
Designation : Director
Appointment date :
29/01/08
Address : 75 Dendy Street
Brighton, VIC 3186
Australia
Biography : Born on 18-06-1966 in London,
United Kingdom.
Name : Richard James Barr
Goyder
Designation : Director
Appointment date :
29/01/08
Address : C/o WESFARMERS LIMITED
Level 11, Wesfarmers House
40 The Esplanade
Perth, WA 6000
Australia
Biography : Born on 18-01-1960 in
Tambellup, Western Australia, Australia.
Mr. Richard Goyder serves as Chief Executive Officer, Group
Managing Director, Executive Director of Wesfarmers Limited. He
holds a Bachelor of Commerce degree from the University of Western
Australia and has completed the Advanced Management Program at
the Harvard Business School. He held a number of positions with
Tubemakers of Australia, particularly business development roles,
before joining Wesfarmers in 1993. He is a director of Gresham
Partners Holdings and a number of Wesfarmers group subsidiaries
and related companies.
Name : Terence James Bowen
Designation : Director
Appointment date : 01/05/09
Address : C/o WESFARMERS LIMITED
Level 11, Wesfarmers House
40 The Esplanade
Perth, WA 6000
Australia
Biography : Born on 24-12-1966 in London,
United Kingdom.
Mr. Terry J. Bowen is the Finance Director, Executive Director of
Wesfarmers Limited. He appointed in 2009 as an executive director
(non-independent). He holds a Bachelor of Accountancy degree and
is a Fellow of CPA Australia. He has held a number of finance
positions with Tubemakers of Australia Ltd, culminating in his
appointment as General Manager Finance. He joined Wesfarmers in
1996 and undertook various roles with Wesfarmers Landmark, where
he was appointed Chief Financial Officer, until its acquisition by AWB
Limited in 2003. He was then appointed the inaugural Chief Financial
Officer for Jetstar Airways, prior to rejoining Wesfarmers as Managing
Director, Wesfarmers Industrial and Safety in November 2005. He
became Finance Director, Coles in 2007, and was appointed Finance
Director, Wesfarmers in May 2009. He is also a director of Gresham
Partners Holdings Ltd, the Western Australian Opera Company
Incorporated, the Western Australian Institute for Medical Research
Incorporatedand a number of Wesfarmers Group subsidiaries. He is a
member of both the National Executive of the Group of 100 Inc and
Curtin University School of Accountancy Advisory Board.
Name : Gaetano Alfred Gerrard
Russo
Designation : Director
Appointment date :
10/11/08
Address : 14 Myamyn Street
Armadale, VIC 3143
Australia
Biography : Born on 13-07-1959 in Sydney,
New South Wales, Australia.
Mr. Guy Russo serves as Managing Director - Kmart of Wesfarmers
Limited. He was Managing Director and Chief Executive Officer of
McDonald's Australia between 1999 and 2005, and President of
McDonald's Greater China region between 2005 and 2007. He
started at McDonalds in 1974, working his way through the ranks
while completing management development training at McDonald's
in-house university as well as at Macquarie University Graduate
School of Management in Sydney. He held all key operations
positions within the Australian business including Regional Manager
of the market, NSW/ACT, from 1991; in 1995 he became a Vice
President of McDonald's Australia and in 1997 was appointed
advisory director to the Australian Board. During this time he also
served on numerous international task forces within the global
corporation. After leaving McDonalds in 2007, he ran his own
consulting firm advising public and private ventures with commercial
interests in China, as well as other markets.
Name : David Graham Matheson
Designation : Director
Appointment date :
25/03/11
Address : 19 Hartley Road
Wonga Park, VIC 3115
Australia
Biography : Born on 20-06-1964 in
Capetown, South Africa.
Name : Marina Joanou
Designation : Director
Appointment date :
09/01/12
Address : 9 Dundas Street
Glen Iris, VIC 3146
Australia
Biography : Born on 13-07-1973 in Sydney,
New South Wales, Australia.
Name : Marnie Kronja
Designation : Company Secretary
Appointment date :
04/02/11
Address : 72 Carr Street
West Perth, WA 6005
Australia
Biography : Born on 07-01-1975 in
Subiaco, Western Australia, Australia.
Staff employed : 25,500 employees (Subject); 200,000
employees (Wesfarmers Group)
Key Advisors
Auditors : ERNST & YOUNG
Ernst & Young Building
11 Mounts Bay Road
Perth, WA 6000
Australia
Composition
Authorized Capital
: AUD 340,000,000
No of shares : 8,160,000 Ordinary A Shares /
7,840,000 Ordinary B Shares / 3,240,000
Redeemable Preference Shares
Share par value : AUD 1 for Ordinary A & Ordinary
B Share / AUD 100 for Redeemable Preference
Share
Issued capital : AUD 340,000,000
Paid up capital : AUD 340,000,000
How listed : Full
List
Composition
Shareholder name :
WESFARMERS LIMITED
Address : Level 11,
Wesfarmers House
40 The Esplanade
Perth, WA 6000
Australia
No. of shares : 8,160,000 Ordinary A Shares
/ 7,840,000 Ordinary B Shares / 3,240,000
Redeemable Preference Shares
% of shares : 100%
Structure
Name : WESFARMERS LIMITED
Affiliation type :
Ultimate Holding Company
Address : Level 11, Wesfarmers House
40 The Esplanade
Perth, WA 6000
Australia
Comments : Wesfarmers Limited engages in
retail, coal mining, gas processing and
distribution, insurance, chemicals and fertilizers, and industrial and
safety product
distribution activities. The company operates 741 supermarkets,
including BI-LO
branded stores; 785 liquor stores trading as Liquorland, Vintage
Cellars, and 1st
Choice Liquor Superstores brand names; 93 hotels; 620 fuel and
convenience
store outlets under Coles Express brand name; and an online supermarket.
It also
retails and supplies home improvement and outdoor living products,
building
materials, and office and technology products. In addition, the company
offers
clothing and home ware through 291 Target and Target Country stores; sells
apparel and general merchandise, including garden, home, health and
beauty,
outdoor living, entertainment, toys and sporting, camping and fishing,
and
automotive products, as well as men’s, women’s, and children’s wear
through
186 Kmart stores; engages in automotive service, repair, and tire
businesses
through 251 Kmart Tyre and Auto Service stores; is involved in open-cut
mining
business; produces metallurgical and steaming coal with mining interests
in
Australia; and provides insurance broking, underwriting, and financial
services to
individual, SME, and corporate clients. Further, it manufactures and
supplies
chemicals, including ammonia, ammonium nitrate, sodium cyanide,
polyvinyl
chloride resin, and wood-plastic composite products; manufactures,
imports, and
distributes phosphate, nitrogen, and potassium based fertilizers;
produces,
distributes, and markets LPG; and offers industrial and safety products
and
services. Additionally, the company provides investment banking advisory
and
structured finance services; manages investment funds in private equity
and
property; and operates a softwood sawmill. It primarily operates in
Australia and
New Zealand. The company was founded in 1914 and is based in Perth,
Australia.
Name : COLES GROUP LIMITED
Affiliation type :
Sister Company
Address : 800 Toorak Road
Hawthorn East, VIC 3123
Australia
Name : BUNNINGS GROUP LIMITED
Affiliation type :
Sister Company
Address : 16-18 Cato Street
Hawthorn East, VIC 3123
Australia
Name : TARGET AUSTRALIA PTY
LTD
Affiliation type :
Sister Company
Address : 12-14 Thompson Road
North Geelong, VIC 3215
Australia
Name : WESFARMERS RESOURCES
LIMITED
Affiliation type :
Sister Company
Address : Level 31, Central Plaza One
345 Queen Street
Brisbane, QLD 4000
Australia
Name : CURRAGH QUEENSLAND
MINING PTY LTD
Affiliation type : Sister Company
Address : Private Mail Bag
Blackwater, QLD 4717
Australia
Name : WESFARMERS CURRAGH PTY
LTD
Affiliation type :
Sister Company
Address : GPO Box 51
Brisbane, QLD 4000
Australia
Name : OAMPS (UK) LIMITED
Affiliation type :
Sister Company
Address : Windsor House
High Street, Esher
Surrey KT10 9RY
United Kingdom
Name : BENGALLA MINING COMPANY
PTY LIMITED
Affiliation type : Sister Company
Address : Bengalla Road
Muswellbrook, NSW 2333
New South Wales
Australia
Name : LUMLEY GENERAL
INSURANCE (NZ) LIMITED
Affiliation type : Sister Company
Address : Level 21, Lumley Centre
88 Shortland Street
Auckland Central, Auckland 1010
New Zealand
Related companies
and corporate
affiliations
comments : Other companies of the Wesfarmers Limited should be considered
affiliates of the
Subject.
Bank Details
Name of bank : Australia And New Zealand Banking
Group Limited
Address : Australia
Account details : Current Account
Name of bank : National Australia Bank Limited
Address : Australia
Account details : Current Account
Comments : It is generally not the policy
of local banks to provide credit status information to
non related
parties, however interested parties would be advised to consult first
with the Subject
if banker's references are required.
Mortgages : Satisfied Charge Details
ASIC Charge Number: 81634
Date Registered: 03-08-1979
Date Created: 27-07-1979
Chargees Name: NATIONAL MUTUAL LIFE NOMINEES LIMITED
ASIC Charge Number: 81703
Date Registered: 21-09-1979
Date Created: 31-08-1979
Chargees Name: NATIONAL MUTUAL LIFE NOMINEES LIMITED
ASIC Charge Number: 81727
Date Registered: 23-10-1979
Date Created: 15-10-1979
Chargees Name: NATIONAL MUTUAL LIFE NOMINEES LIMITED
Legal Fillings
Bankruptcy
fillings : None reported.
Court judgements :
None reported.
Tax liens : None reported.
Others : None reported.
Description
Source of
financial statement : Public Record
Sources
Financial
statement date : 30/06/12
Type of accounts :
Full audited
Currency : Australia Dollar
(AUD)
Exchange rate : 1 USD = AUD 0.96 as of
19-09-2012
Summarized Financial Information
Consolidation type
: Group Consolidated Group Consolidated
Currency : Australia Dollar
(AUD) Australia Dollar
(AUD)
Denomination : (x1) One (x1) One
Date of financial
year end : 30/06/12 30/06/11
Length of accounts
: 12 months 12 months
Sale turnover /
Income : 58,080,000,000 54,875,000,000
Profit before tax
: 3,044,000,000 2,706,000,000
Net income : 2,126,000,000 1,922,000,000
Non current assets
: 31,401,000,000 30,596,000,000
Current assets : 10,911,000,000 10,218,000,000
Inventories : 5,006,000,000 4,987,000,000
Total assets : 42,312,000,000 40,814,000,000
Current
liabilities : 10,747,000,000
8,722,000,000
Non current
liabilities : 5,938,000,000
6,763,000,000
Total liabilities
: 16,685,000,000 15,485,000,000
Share equity : 25,627,000,000 25,329,000,000
Reserve : 269,000,000 310,000,000
Retained earning :
2,103,000,000 1,774,000,000
Comments : The
group’s consolidated financial information above relates to the Subject’s
Parent / Ultimate
Holding Company Wesfarmers Limited and all its subsidiaries
which include the
Subject.
The Kmart division
reported sales turnover of AUD 4,055 million with EBIT of
AUD 266 million
for financial year end 30-06-2012 compared to sales turnover of
AUD 4,036 million
and EBIT of AUD 201 million for financial year end 30-06-2011.
Main activities :
The Subject owns
and operates a network of discount department stores in
Australia and New
Zealand under the name KMART and KMART TYRE &
AUTO SERVICE.
The Subject is
part of Wesfarmers Limited, which is an Australia based
company. The
Company’s principal activities are retailing operations,
including
supermarkets, general merchandise and specialty department
stores; fuel,
liquor and convenience outlets; retailing of home improvement
and outdoor living
products and supply of building materials; retailing of
office and
technology products; coal mining and production; gas processing
and distribution;
insurance; industrial and safety product distribution;
chemicals and
fertilizers manufacture, and investments. It operates in 10
segments: coles;
home improvement and office supplies; resources;
insurance; KMART; Target;
industrial and safety; energy; chemicals and
fertilizers, and
other. During the fiscal year ended June 30, 2010, the
Company operated
742 supermarket stores, 766 liquor outlets and 96
hotels.
KMART is engaged
in the retail sales of apparel and general merchandise,
including toys,
leisure, entertainment, home and consumables.
KMART TYRE &
AUTO SERVICE is engaged in the provision of
automotive
service, repairs and tyre service.
Brand : KMART
KMART TYRE &
AUTO SERVICE
Purchases
International :
Worldwide
Sales
Local : Yes
International : No
exports.
History : Kmart
Australia Limited was born out of a joint venture between G.J Coles
& Coy Limited
(Coles) and S.S. Kresge Company in the US, with Kresge
owning 51% of the common
stock in the company. They began organising
to develop Kmart
stores in Australia in 1968.
The first store
opened in Burwood East, Victoria in April 1969. The
Burwood store
opened to intense interest, with over 40,000 people passing
through the checkouts
on the first day. The doors had been closed 45
minutes after
opening as a safety measure.
In 1978 Kresge
exchanged it's 51% stake in Kmart Australia for a 20%
stake in Coles,
then in 1994 Coles bought back all Coles shares from
Kresge. A
long-term licensing agreement allows Wesfarmers to use the
Kmart name in
Australia and New Zealand. In 2006, Coles Group
announced its
plans for Kmart, along with BI-LO and the Coles Group
liquor brands, to
be merged into the Coles brand. The merger would have
seen a variety of
Coles stores with different purposes,including food,
merchandise,
petrol and liquor. The plan was for the first re-branded store
to open in 2007,
with 40 stores, mostly former 'Super K' stores divided last
decade into
separate Coles and Kmart stores, reformed into Coles
Superstores.
However, in March 2007, Coles Group announced that the
plans for these
super centres were being deferred, pending the sale of all
or part of Coles
Group. In August 2007, Wesfarmers CEO Richard Goyder
said super centres
would almost certainly not be part of the Wesfarmers
approach after
taking over Coles Group. Kmart's performance immediately
prior to the
Wesfarmers takeover was poor. In May 2007, it reported a
sales drop of 3.2%
for the third quarter, and an overall drop in sales of
3.9% for the first
three quarters. Announcing its plans in August 2007 for
Coles Group
following their expected takeover, Wesfarmers said it would
consider selling
all or part of Kmart, or converting some stores to the
Target brand.
Wesfarmers took
control of Coles Group in November 2007 and by March
2008 had decided
to retain Kmart and invest $300m in the chain over the
next five years.
During the first financial year of the Wesfarmers takeover
(November 2007 to
June 2008), Kmart reported revenue of A$2.45 billion,
and EBIT of A$111
million. Kmart's performance during the 2009 financial
year was quite
poor; reporting revenue of A$4 billion and an EBIT of A$109
million. The 2010
financial year saw Kmart with a large increase in EBIT,
reporting revenue
of A$4.02 billion and an EBIT of A$190 million, which
was an increase in
EBIT of over 74%.
Property & Assets
Premises : The
Subject operates from head office located at the verified heading
address consisting
of administrative office.
Branches : In
addition, the Subject operates from 185 Kmart stores and 260 Kmart
Tyre & Auto
Service centres located throughout Australia and New
Zealand.
Gross Domestic Products (GDP) & Economic
Overview
Central bank : Reserve
Bank of Australia
Reserve of foreign
exchange & gold : US$ 41.385
billion
Gross domestic
product - GDP : US$ 1.235
trillion
GPP (Purchasing
power parity) : 918.529
billion of International dollars
GDP per capita -
current prices : US$ 55,590
GDP - composition
by sector : agriculture:
4.1%
industry: 26%
services: 70%
Inflation : 2008:
4.4%
2009: 1.8%
2010: 2.8%
Unemployment rate
: 2008: 4.2%
2009: 5.6%
2010: 5.2%
Public debt
(General
Government gross debt as
a % GDP): 2008:
4.2%
2009: 5.6%
2010: 5.2%
Government bond
ratings : Standard
& Poor's: AAA/Stable/A-1+
Moody's rating: Aaa
Moody's outlook: STA
Market value of
publicly traded
shares: US$1.258
trillion
Largest companies
in the country : Commonwealth Bank
(Banking), BHP Billiton (Materials), Westpac Banking Group (Banking), Rio Tinto
(Materials), National Australia Bank (Banking),
ANZ Banking
(Banking), Telstra (Telecommunications)
Trade & Competitiveness Overview
Total exports : US$210.7 billion
Exports
commodities : coal, iron
ore, gold, meat, wool, alumina, wheat
Total imports :
US$187.2 billion
Imports
commodities : machinery and
transport equipment, computers and office machines,
telecommunication
equipment and parts, crude oil and petroleum products
Export - major
partners : Japan 18.9%, China
14.2%, South Korea 8%, US 6%, NZ 5.6%, India
5.5%, UK 4.2%
Import - major
partners : China 15.5%, US
12.8%, Japan 9.6%, Singapore 5.6%, Germany 5.2%,
UK 4.3%, Thailand
4.2%
FDI Inflows : 2007: US$45,477
million
2008: US$46,722 million
2009: US$22,572 million
FDI Outflows : 2007: US$16,822
million
Best countries for
doing business : 10 out of 183 countries
Global
competitiveness ranking : 16 (ranking by country on a basis of 133, the first
is the best)
Country and Population Overview
Total population :
22.23 million
Total area : 7,692,024 km2
Capital : Canberra
Currency : Australian
dollars (AUD)
Internet users as
% of total
population: 74.00%
Purchase Term
Local :
Prepayment, Bank transfer, D/P, Prepayment, Credit 30-120 days
International :
L/C, Telegraphic transfer, D/P, Prepayment, Credit 30-120 days
Sales Term
Local : Cash,
Credit card
Trade Reference/ Payment
Behaviour
Comments : As
local and international trade references were not supplied, the Subject's
payment track
record history cannot be appropriately determined but based
on our research,
payments are believed to be met without delay.
Investigation Note
Sources :
Interviews and material provided by the Subject
: Other official and local business sources
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.29 |
|
|
1 |
Rs.84.09 |
|
Euro |
1 |
Rs.72.44 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.