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Report Date : |
23.02.2013 |
IDENTIFICATION DETAILS
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Name : |
KREATION GEM PALACE BV |
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Registered Office : |
Ms Kays Fine Jewellery No 59 Front Street Philipsburg St
Maarten NA Netherland Antilles |
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Country : |
St Maarten |
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Date of Incorporation : |
1988 |
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Com. Reg. No.: |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Jewelry Store |
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No. of Employees : |
60 |
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 : |
Satisfactory |
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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 – June 30th, 2012
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Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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St Maarten |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 |
SINT MAARTEN - ECONOMIC OVERVIEW
The economy of Sint Maarten centers around tourism with nearly four-fifths
of the labor force engaged in this sector. Over one million visitors come to
the island each year - 1.3 million in 2008 - with most arriving through the
Princess Juliana International Airport. Cruise ships and yachts also call on
Sint Maarten's numerous ports and harbors. No significant agriculture and
limited local fishing means that almost all food must be imported. Energy
resources and manufactured goods are also imported. Sint Maarten had the
highest per capita income among the five islands that formerly comprised the
Netherlands Antilles.
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Source
: CIA |
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POLITICAL DATA |
ECONOMIC DATA |
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Form of Government: Monarchy
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Currency: 100 ANG = 55.86 USD |
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Ordered as: |
Creation Gem Palace NV |
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Address in the order: |
Ms Kays Fine Jewellery No 59 Front Street Philipsburg St
Maarten NA Netherland Antilles |
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Legal Name: |
Kreation Gem Palace BV |
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Trade Name: |
Kays Fine Jewelry |
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Legal Address |
65-A Front Street, Philipsburg, St. Maarten |
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Operative Address |
65-A Front Street, Philipsburg, St. Maarten |
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Telephone: |
+1 (721) 542-4556 / 2889 |
Registration Number : |
5722 |
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Fax: |
+1 (721) 542-2889 |
Legal Form: |
Limited Liability Company |
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Email: |
Registered in: |
St. Maarten |
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Website: |
Date Created: |
1988 |
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Manager: |
Mr. Dipak Chugani - Managing Director |
Date Incorporated: |
January 11, 1989 |
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Staff: |
60 |
Stock: |
N.A. |
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Value: |
N.A. |
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Activity: |
Jewelry Store |
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Name of the Bank |
Union Bank of India |
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Account Number |
Confidential |
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Comments |
This information was verified by the company. |
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Name of the Bank |
Windward Islands Bank |
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Location |
P.O. Box 293, St. Maarten |
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Account Number |
Confidential |
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Comments |
This information was verified by the company. |
BUSINESS
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HISTORY |
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The company was founded in 1988 and incorporated in 1989. |
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PRINCIPAL ACTIVITY |
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The subject company is engaged in the retail commercialization
of luxury jewelry and watches in St. Maarten. |
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Products/Services description: |
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Products-Jewelry: Blue Diamonds, Blue Sapphires, Emeralds,
Pink Sapphires, Rubies, White Diamonds, Multi Color Sapphire, Color Stones, Tanzanites,
Alexandrite, Champagne Diamonds, Yellow/Canary Diamonds. |
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Sales are: |
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Retail |
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Brands: |
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Roger Dubuis Timepieces; Gerald Genta; Daniel Roth; Jean
Richard; Graham; Arnold & Son; Glycine; Martin Braun; Eberhard & Co.;
Maurice Lacroix; Cyma; Ernst Benz; Kabana Inlay Jewelry; Faberge; Charles
Krypell; Ammolite by Korite. |
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Clients: |
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General clientele. |
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Suppliers: |
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Designs on Fifth Emerald Jewelry Inc |
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Operations area: |
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National, Local |
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The company imports from Europe and United States. |
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The company does not export |
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Trade References: |
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Company: Designs on Fifth Country: USA Address: 20 west, 47th street, suite 408 NY 10036 Phone: 212-921-4162 Time doing business: 10 years Products: Jewelry Contact Person: David Ambalo Payment facility: 60-90 days Open Credit (USD): 250,000 Monthly Average Purchase (USD): 40,000 Comments: Very good clients. Company: Emerald Jewelry Inc Country: USA Address: 631 South Olive street, suite 201, Los Angeles,
CA 90014 Phone: 213-623-2329 Time doing business: 6 years Products: Jewelry Contact Person: Albert Can Payment facility 45 days Open Credit (USD): 500,000 Monthly Average Purchase (USD): from 25,000.00 to
60,000.00 Comments: Good clients and payers. |
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Insurance: |
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Wexler Insurance Co Ponce De Leon, Coral gables, FL USA |
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The subject employs 60 employee(s) |
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Comments on staff: |
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This information was verified by the company. |
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PAYMENTS |
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made on a 65 days basis - monitored over the last 12
months |
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LOCATION |
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Headquarters |
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The head office of the company is located at 65-A Front
Street, Phillipsburg St. Maarten. |
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Surface area: |
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1473 sq ft. |
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The property is: |
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Owned |
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Comments on location: |
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The main store and administrative office can be found at
the above listed address. |
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Branches: |
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St. Maarten: #7 Harbor Point Village At the Cruise Ship Terminal Tel: +1 (721) 542-7246 |
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Business Overview: |
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Kay's has established service centers in New York and
California too. |
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Listed at the stock exchange: |
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NO |
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Shareholders Parent Company(ies): |
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The subject company is a family owned business and they
own 25% of the shares each. Raj Chugani Sonia Chugani Vandana Chugani They are owners 4 locations. The four locations generated USD 28
millions for the year 2009. |
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Management: |
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Mr. Dipak Chugani, Managing Director |
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Related Companies: |
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The subject reports 1 related company in Aruba and 1 in
St. Kitts and Nevis. Aruba: 25-A Havenstraat Oranjestad Tel: (297) 5889978 Fax: (297) 5889910 St. Kitts: Building 29, Unit 1 Port Zante, Basseterre Tel: (869) 4658213 Fax: (869) 4659646 |
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As a private company the subject does not publish any
financial statements. |
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However our financial sources could provide us with the following
data (estimates): Those figures are estimates provided by confidential
banking and financial institutions working with the company. |
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Currency |
DATE |
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USD |
2011 |
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Turnover |
1,210,000 |
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Operating Income |
62,000 |
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Net Income |
45,000 |
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Net worth |
300,000 |
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Bank liabilities |
0 |
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The cash flow is |
normal |
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Currency |
DATE |
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USD |
2008 |
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Turnover |
854,000 |
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Operating Income |
13,000 |
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Net Income |
6,000 |
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Net worth |
140,000 |
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Bank liabilities |
20,000 |
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The cash flow is |
normal |
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Comments on the financial
data: The financial information provided by our banking sources
could not be verified with the company or public. |
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Legal Filings |
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The sources
consulted record no detrimental legal or labor court information. |
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Local credit bureau gave a normal credit rate. The company is in Good Standing. This means that all local
and federal taxes were paid on due date. |
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Final Opinion |
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The company has 25 years of experience with no legal
changes since its incorporation. They have the support of 60 employees for this reason it
is considered a medium sized company. It also has international relations and accounts with
well-known banks in the country. The figures available show that the company has nil
indebtedness and that the cash is normal. As we mentioned above, the financial figures were not
verified by the company. Also, our searches revealed that the payments are regular. There were no legal filings found against the company. Considering the information gathered, |
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Profitability |
CORRECT |
Public |
NO |
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Indebtedness |
NIL |
Payments |
REGULAR |
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Cash |
NORMAL |
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Person Interviewed |
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Mr. Dipak Chugani |
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Position |
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Managing Director |
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Comments |
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Mr. Chugani confirmed all the information of the company. |
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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The diamond jewellery industry in India today may be
more than Rs 60000 mil and is rated amongst the fastest growing in the
world. Indi ranks third in the world in domestic diamond consumption.
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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 –
DIAMOND SAGA – DIRTY DOZEN STUCK
WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
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Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.54.42 |
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1 |
Rs.83.20 |
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Euro |
1 |
Rs.71.90 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.