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Report Date : |
15.07.2013 |
IDENTIFICATION DETAILS
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Name : |
JFE SHOJI TRADE CORPORTION |
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Registered Office : |
1-6-20 Dojima Kitaku Osaka |
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Country : |
Japan |
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Financials (as on) : |
31.03.2012 |
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Date of Incorporation : |
August 2004 |
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Com. Reg. No.: |
1200-01-062403 (Osaka-Kitaku) |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Importer, exporter, wholesaler of steel, iron ore, chemicals, machinery |
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No. of Employees : |
6,119 |
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 : |
Regular |
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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 – March 31st 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Japan |
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 |
japan ECONOMIC OVERVIEW
In the years
following World War II, government-industry cooperation, a strong work ethic, mastery
of high technology, and a comparatively small defense allocation (1% of GDP)
helped Japan develop a technologically advanced economy. Two notable
characteristics of the post-war economy were the close interlocking structures
of manufacturers, suppliers, and distributors, known as keiretsu, and the
guarantee of lifetime employment for a substantial portion of the urban labor
force. Both features are now eroding under the dual pressures of global
competition and domestic demographic change. Japan's industrial sector is
heavily dependent on imported raw materials and fuels. A small agricultural
sector is highly subsidized and protected, with crop yields among the highest
in the world. While self-sufficient in rice production, Japan imports about 60%
of its food on a caloric basis. For three decades, overall real economic growth
had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s,
and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging
just 1.7%, largely because of the after effects of inefficient investment and
an asset price bubble in the late 1980s that required a protracted period of
time for firms to reduce excess debt, capital, and labor. Modest economic
growth continued after 2000, but the economy has fallen into recession three
times since 2008. A sharp downturn in business investment and global demand for
Japan's exports in late 2008 pushed Japan into recession. Government stimulus
spending helped the economy recover in late 2009 and 2010, but the economy
contracted again in 2011 as the massive 9.0 magnitude earthquake and the
ensuing tsunami in March disrupted manufacturing. The economy has largely
recovered in the two years since the disaster, but reconstruction in the Tohoku
region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared
the economy his government's top priority; he has pledged to reconsider his
predecessor's plan to permanently close nuclear power plants and is pursuing an
economic revitalization agenda of fiscal stimulus and regulatory reform and has
said he will press the Bank of Japan to loosen monetary policy. Measured on a
purchasing power parity (PPP) basis that adjusts for price differences, Japan
in 2012 stood as the fourth-largest economy in the world after second-place
China, which surpassed Japan in 2001, and third-place India, which edged out
Japan in 2012. The new government will continue a longstanding debate on
restructuring the economy and reining in Japan's huge government debt, which
exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth,
and an aging and shrinking population are other major long-term challenges for
the economy.
|
Source : CIA |
JFE SHOJI TRADE CORPORTION
REGD NAME: JFE
Shoji KK
MAIN OFFICE: 2-7-1
Ohtemachi Chiyodaku Tokyo 100-8070 JAPAN
Tel:
03-5203-5510 Fax: 03-5203-5289
*.. Registered at:
1-6-20 Dojima Kitaku Osaka
.
URL: http://www.jfe-shoji.co.jp/
E-Mail address: (through the URL)
Import, export,
wholesale of steel, iron ore, chemicals, machinery, other
(Domestic) 21
locations
Korea (2), China (3), Taiwan (2), Vietnam (2), India (4), Australia (2),
USA (3), India, Istanbul, Myanmar, other.
(Total 32in 17 countries)
TSUTOMU YAJIMA,
PRES Mikio Fukushima, ch
Masaru Saruwatari,
s/mgn dir Kohei Yoshioka, s/mgn dir
Katsuyoshi Takaya,
s/mgn dir Hidehiko Ogawa, s/mgn dir
Yen Amount: In million
Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 2,086,595 M
PAYMENTS REGULAR CAPITAL Yen
20,000 M
TREND STEADY WORTH Yen
123,692 M
STARTED 1948 EMPLOYES 6,119
TRADING HOUSE OWNED BY JFE SHOJI HOLDINGS INC.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
This is a trading company belonging to JFE Shoji Holdings Inc, which was created on 01/Aug/2004 by Kawasho Corp, Kawasaki Steel group trading house. On 01/Oct/2004, Kawasho Corp and NKK Trading Inc, NKK group trading house, merged when the two parents, Kawasaki Steel and NKK merged to become JFE Holdings Inc. At the same time, the group reorganized into four individual companies under the control of JFE Shoji Holdings Inc: JFE Shoji Trade Corporation (consolidated steel business), Kawasho Foods Corporation (foods business), Kawasho Semiconductor Corporation (semiconductor business) and Kawasho Real Estate Corporation (real estate business). 98% of sales are generated by the subject firm and this is the core of the group firms. In Oct 2010 acquired of all issued shares in Republic Coal Pty Ltd, Australia. In Jun 2010 established JV with Summit Corp Thailand, as Steel Alliance Service Center Co Ltd, a steel processing center mainly serving the automobile industry. The firm was listed on the Tokyo S/E Apr 2012. The firm become a wholly-owned subsidiary of JFE Holdings in Oct 2012 through a stock swap, and delisted from Tokyo S/E on Sept 26, 2012.
The sales volume
for Mar/2012 fiscal term amounted to Yen 2,086,595 million, a 3.7% up from Yen
2,011,526 million in the previous term.
In the steel business, its core business field, Japan’s automobile
industry witnessed a quicker than expected resumption in its supply chain. The recurring profit was posted at Yen 17,283
million and the net profit at Yen 12,108 million, respectively, compared with
Yen 23,783 million recurring profit and Yen 13,645 million net profit,
respectively, a year ago.
(Apr/Sept/2012
results): Sales Yen 958,280 million, operating profit Yen 7,853 million,
recurring profit Yen 7,481 million, net profit Yen 4,179 million.
For the current
term ending Mar 2013 the recurring profit is projected at Yen 8,000 million and
the net profit at Yen 4,500 million, respectively, on Yen 980,000 million sales
turnover.
The financial situation is considered FAIR and good for ORDINARY
business engagements.
Date Registered: Aug 2004
Regd No.:
1200-01-062403 (Osaka-Kitaku)
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 320 million shares
Issued: 236,777,704 shares
Sum: Yen 20,000 million
Major
shareholders: JFE Holdings Inc* (100)
*.. Holding company formed thru business
combination between Kawasaki Steel and NKK, Tokyo, founded 2002, listed Tokyo
S/E, capital Yen 147,143 million, sales Yen 3,166,511 million, operating profit
Yen 44,779 million, recurring profit Yen 52,977 million, net losses Yen 36,633
million, total assets Yen 3,811,848 million, net worth Yen 1,392,644 million,
employees 54,341, pres Hajime Bada
Nothing
detrimental is known as to the commercial morality of executives.
Activities: The subject is a trading house owned by JFE Shoji Holdings Inc
and we here give here breakdown
of operations/sales of the 3 group firms:
JFE
Shoji Trade Corp (98%): steel, coal, iron
ore, chemicals & fuels, steelworks machinery, engineering works:
Kawasho
Foods Corp (1%): foodstuffs;
Kawasho
Semiconductor Corp (1%): semiconductor
equipment & supplies;
(Major Handling Items by JFE Shoji Trade Corp):
Steel (60%): shipbuilding
steel, thick steel plate, processed steel for ships & bridges, hot-rolled
sheet, cold-rolled sheet, electrical steel sheet, coated steel sheet, steel
plate, stainless steel, special steel, galvanized sheet, tin plate, steel
pipes, special steel pipes, treated steel pipes, iron powder, hot charge, steel
piles, wire, H-beam, lightweight shaped steel plate, regular shaped steel
plate, reinforced products, columns, semi-finished steel products (slabs, etc),
civil engineering products, construction materials, housing materials, other
products, civil engineering, construction;
Raw Materials
(10%): iron ore, sintering ore, coal for coke making, dolomite & other
steel making materials, cokes & coal products, nickel, chromium, zinc,
alloy iron, scrap iron & other metal raw materials, aluminum, scrap
aluminum, deoxidized aluminum, aluminum products;
Machinery (10%): blast furnaces,
coke ovens, oxygen facilities, continuous slab casting machines, hot rolling
mills, galvanizing equipment & steel mfg machinery, roll, lubricating oil,
bearing, electric cable & steel mfg materials, metal processing machinery,
boilers, turbines, electrical equipment, amusement part equipment, hospital
facilities, building facilities, factory facilities, various new ship building,
sale & purchase of used ships, scrapping ships, ship repairs, ship
equipment, other products;
Chemicals
& Fuels (20%): coal tar, coal tar pitch, creosote oil & other
chemical coal
products, magnesium chloride, nitric acid & other inorganic
chemicals, ferrite core, molding materials, iron oxide, fertilizers, general
use plastic, engineering plastics & other plastic raw materials &
compound products, fine ceramics, ultra-fine nickel powder & other
functional chemical products, industrial gases, crude oil, gasoline, LPG,
lubricating oil & other petroleum products.
Clients: [Mfrs,
wholesalers] JFE Steel (50%), JFE Shoji Osaka, Hanwa Kozai Co, Tosen Ltd,
Yashimanada Inc, Mizushima Steel, Sanei Metal Co, Kowa Kinzoku Corp, Daiei
Kogyo, other.
No. of accounts: 500
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] JFE Steel, JFE Chemical, JFE Steel Plate, BM Alliance, BHP
Billiton, Wesfarmers, Vale, Mizushima Steel, other.
Payment
record: Regular
Location: Business area in
Tokyo. Office premises at the caption
address are owned and maintained satisfactorily.
Bank References:
Mizuho Corporate
Bank (Osaka)
SMBC (Osaka)
Relations: Satisfactory
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2012 |
31/03/2011 |
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INCOME STATEMENT |
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Annual Sales |
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2,086,595 |
2,011,526 |
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Cost of Sales |
2,020,266 |
1,938,329 |
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GROSS PROFIT |
66,328 |
73,196 |
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Selling & Adm Costs |
49,551 |
49,833 |
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OPERATING PROFIT |
16,777 |
23,363 |
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Non-Operating P/L |
506 |
420 |
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RECURRING PROFIT |
17,283 |
23,783 |
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NET PROFIT |
12,108 |
13,645 |
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BALANCE SHEET |
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Cash |
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27,998 |
31,551 |
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Receivables |
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334,374 |
322,108 |
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Inventory |
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79,585 |
77,502 |
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Securities, Marketable |
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Other Current Assets |
28,120 |
31,576 |
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TOTAL CURRENT ASSETS |
470,077 |
462,737 |
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Property & Equipment |
37,594 |
38,061 |
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Intangibles |
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4,018 |
5,503 |
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Investments, Other Fixed Assets |
64,804 |
65,063 |
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TOTAL ASSETS |
576,493 |
571,364 |
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Payables |
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283,783 |
304,539 |
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Short-Term Bank Loans |
90,717 |
78,105 |
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Other Current Liabs |
59,093 |
47,032 |
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TOTAL CURRENT LIABS |
433,593 |
429,676 |
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Debentures |
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Long-Term Bank Loans |
10,388 |
14,000 |
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Reserve for Retirement Allw |
5,133 |
4,802 |
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Other Debts |
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3,687 |
5,460 |
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TOTAL LIABILITIES |
452,801 |
453,938 |
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MINORITY INTERESTS |
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Common
stock |
20,000 |
20,000 |
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Additional
paid-in capital |
17,428 |
17,428 |
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Retained
earnings |
92,310 |
83,742 |
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Evaluation
p/l on investments/securities |
2,933 |
3,829 |
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Others |
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(8,618) |
(7,217) |
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Treasury
stock, at cost |
(361) |
(356) |
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TOTAL S/HOLDERS` EQUITY |
123,692 |
117,426 |
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TOTAL EQUITIES |
576,493 |
571,364 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2012 |
31/03/2011 |
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Cash
Flows from Operating Activities |
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-23,611 |
16,343 |
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Cash
Flows from Investment Activities |
-6,429 |
-7,069 |
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Cash Flows
from Financing Activities |
26,123 |
-850 |
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Cash,
Bank Deposits at the Term End |
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27,953 |
31,501 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2012 |
31/03/2011 |
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Net
Worth (S/Holders' Equity) |
123,692 |
117,426 |
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Current
Ratio (%) |
108.41 |
107.69 |
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Net
Worth Ratio (%) |
21.46 |
20.55 |
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Recurring
Profit Ratio (%) |
0.83 |
1.18 |
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Net
Profit Ratio (%) |
0.58 |
0.68 |
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Return
On Equity (%) |
9.79 |
11.62 |
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FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.59.89 |
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UK Pound |
1 |
Rs.90.88 |
|
Euro |
1 |
Rs.78.32 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
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 |
---- |
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.