MIRA INFORM REPORT

 

 

Report Date :

29.03.2013

 

IDENTIFICATION DETAILS

 

Name :

CHI MEI CORPORATION

 

 

Registered Office :

No.59-1 San Chia, Jen Te ,Tainan City 71702

 

 

Country :

Taiwan

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

11.01.1960

 

 

Com. Reg. No.:

68387705

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sales chemicals, etc.

 

 

No. of Employees :

About 2,000 Employees

 

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 :

Good

 

 

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

(31.03.2012)

Current Rating

(30.06.2012)

Taiwan

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

Taiwan - ECONOMIC OVERVIEW

 

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. In keeping with this trend, some large, state-owned banks and industrial firms have been privatized. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. In 2009, Taiwan's GDP contracted 1.9%, due primarily to a 20% year-on-year decline in exports. In 2010 GDP grew 10.9%, as exports returned to the level of previous years, and in 2011, grew 5.2%. However, 2012 growth will likely be less, according to most forecasters, because of softening global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but so far Taiwan has been excluded from this greater economic integration largely because of its diplomatic status with the exception of the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other regional partners, and negotiations on a deal with Singapore began this year. Follow-on components of ECFA, including deals on trade in goods, services, and investment, have yet to be completed. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 10.9% of the island's total population as of 2011. The island runs a large trade surplus, and its foreign reserves are the world's fourth largest, behind China, Japan, and Russia. Since 2005 China has overtaken the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from the mainland's financial firms and institutional investors, and providing new opportunities for Taiwan financial firms to operate in China. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

 

Source : CIA

 


Contact Points

 

Company Name:

Chi Mei Corporation

Supplied Name:

CHE MEI CORP

Trading Address:

No.59-1 San Chia, Jen Te ,Tainan City 71702, Taiwan, R.O.C.

Supplied Address:

NO. 59-1 SAN CHIA JEN TE TAINAN CITY 71702 TAIWAN

Telephone Number:

+886-6-266-3000

Fax Number:

+886-6-266-5555

E-mail:

service@mail.chimei.com.tw

Website:

www.chimeicorp.com

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

Chi Mei Corporation

Registered Address:

No.59-1 San Chia, Jen Te ,Tainan City 71702, Taiwan, R.O.C.

Date of Foundation:

1960-1-11

Registration Number:

68387705

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 19,600,000,000 (USD 654,640,000)

(As of 2013.03, 1 NTD = 0.0334 USD)

Paid-up Capital:

NTD 17,076,760,260 (USD 570,363,792)

Legal Representatives:

Chunhua Xu

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales chemicals, etc

Staff:

About 2,000 Employees

Listed at Stock Exchange:

Yes; Stock Symbol: 1763

Date of Last Annual Return:

2012-6-27

History

 

Subject was incorporated on 1960-1-11 with registered number 68387705 as Joint Stock Company in Taiwan.

 

Awards

Year

Awards

2009

Blue chip importer and exporter

2010

Blue chip importer and exporter

2011

Blue chip importer and exporter

 

Standard of Blue chip importer and exporter

 

Unit: USD

Year

Amount

2009

15,000,000

2010

20,000,000

2011

22,000,000

 

 

 

Shareholders

 

Name

Subscription Shares

Chunhua Xu

1,588,277         

 

Taiqi Investment Co., Ltd. (Literal Translation)

 

267,890,743

 

Lingyu Zhao

5,741,814

Rongjun Lin

336,656

Guangfu Song

1,651,063

Qingsheng Lin

892,145

Mitsubishi Chemical Corporation

145,189,272

Zhaoyang He

1,994,019

Yueli Investment Co., Ltd. (Literal Translation)

21,643,807

The information above is that of subject’s major shareholders.

 

 

Subsidiaries & Branches

 

Offices

1

Name:

Taipei Technology Service Center

Address:

8/F., No.9., Aiguo West Road, Taipei City, Taiwan

Tel:

+886-2-23148841

Fax:

+886-2-23618800

2

Name:

Taichung Technology Service Center

Address:

No. 27-5., Section 1, Xiangshang Road, West District, Taipei City, Taiwan.

Tel:

+886-4-23022255

Fax:

+886-4-23016161

 

Related Companies

1

Name:

Zhenjiang Chi Mei Co., Ltd (Literal Translated)

Address:

No.2., Hanqiao Road, Dagang Development Area, Zhenjiang City, Jiangsu Province, China

Tel:

+86-511-83121300

Fax:

+86-511-83121033

2

Name:

Chi Mei Innolux Corporation

Address:

No.160 Science Road, Hsinchu Science and Industry Park, Zhunan Township, Miaoli County, Taiwan

Tel:

+886-3-758-6000

Listed at Stock Exchange:

Yes; Stock Symbol: 3481

3

Name:

Chi Lin Technology Co., Ltd.

Address:

No., 18, Shengli 1st St., Rende Dist., Tainan City, 71758, Taiwan (R.O.C.)

Tel:

+886-6-279-1188

Fax:

+886-6-279-1685

4

Name:

Chimei Materials Technology Corp.

Address:

No.13, Muzhagang W. Rd., Shanhua Dist., Tainan City 741, Taiwan (R.O.C.)

Tel:

+886-6-588-9988

Listed at Stock Exchange:

Yes; Stock Symbol: 4960

5

Name:

Nexgen Mediatech Inc 

Address:

11F, No. 186, Jianyi Rd., Chung Ho City, Taipei Hsien, Taiwan, R.O.C. 

Tel:

+886-2-8227-1133

Fax:

+886-2-82271498 

6

Name:

GIO Optoelectronics Corp.

Address:

No.5 Titang Gang Road, Fenghua Li, Xinshi District, Tainan City, Taiwan

Tel:

+886-6-588-9999

Fax:

+886-6-509-1188

Listed at Stock Exchange:

Yes; Stock Symbol: 3610

7

Name:

Chi Mei Visual Technology Corporation

Address:

No.13, Muzhagang W. Rd., Shanhua Dist., Tainan City 741, Taiwan (R.O.C.)

Tel:

+886-6-588-9988

Fax:

+886-6-5091005

8

Name:

Chimei Lighting Technology Corp.

Address:

No.3, Titanggang Rd., Xinshi Dist., Tainan City, Taiwan; Tainan, Taiwan

Tel:

+886-6-588-9968

Fax:

+886-6-509-1268

9

Name:

Chi Mei Trading Co., Ltd.

Address:

7F, No. 9, Ai Kuo West Road, Taipei, Taiwan

Tel:

+886-2-2349-7388

Fax:

+886-2-2314-9419

10

Name:

Chi Mei Logistics Corp.

Address:

No.5 Kanxi Road, Sinshih Township Tainan County, Taiwan

Tel:

+886-6-588-9977 

Fax:

+886-6-509-1158

11

Name:

Chi Mei Frozen Food Co., Ltd.

Address:

Mo.71 Delun Road, Rende District, Tainan City, Taiwan

Tel:

+886-7-699-3901

Fax:

+886-6-279-1194

 

 

Personnel Information

 

Core Management

Directors

1

Name

Chunhua Xu

Position

Chairman

2

Name

Wenlong Xu

Position

Director

3

Name

Jinxiang Liao

Position

Director

4

Name

Lingyu Zhao

Position

Director

5

Name

Rongjun Lin

Position

Director

6

Name

Guangfu Song

Position

Director

7

Name

Qingsheng Lin

Position

Director

8

Name

Jucheng Lv

Position

Director

9

Name

Muzi Lu

Position

Director

10

Name

Zhaoyang He

Position

Supervisor

11

Name

Yongchun Wu

Position

Supervisor

 

Personnel Structure

Total Employees

About 2,000 Employees

 

Operation Information

 

Offices & Factories

 

Headquarters

Add

 

 

Production Information

l  Subject is engaged in manufacture of chemicals products such as synthetic resin, etc.

l  Subject obtained the certifications of ISO 9001: 2000 and ISO 14001.

l  Subject has factories in Taiwan and mainland China for production and the annual production capacities are as follows for reference:

Product

Annual Capacity

ABS Resin

1,500,000 tons

PS Resin

150,000 tons

TPE

50,000 tons

PSP Resin

120,000 tons

 

Purchase Information

l  The registered activities of subject:

Business Code

Details

C801010

Basic chemical industry

C801020

Manufacturing industry for petrochemical and chemical raw materials

C801060

Synthetic rubber manufacturing industry

C801100

Synthetic resin and plastic manufacturing industry

C802990

Other chemical products manufacturing industry

C901070

Stone product manufacturing industry

CC01990

Other electric motor and electronic machinery manufacturing industry

F105050

Wholesales of furniture, bedclothing, kitchen appliance and decoration

F107990

Wholesales of other chemical products

F199990

Other wholesales industry

F205040

Retails of furniture, bedclothing, kitchen appliance and decoration

F207990

Retails of other chemical products

F299990

Other retails

G801010

Storage industry

H701020

Rent and sale of industrial warehouse

H701040

Developing of special industrial area

H701060

Developing of new town and subdistrict

J101040

Waste management industry

J101050

Environment measuring service industry

J101060

Waste water disposal

CC01080

Electric components manufacturing industry

C801990

Other chemical material manufacturing industry

C805010

Plastic sheath, pipes manufacturing industry

C805050

Industrial plastic product manufacturing industry

C805990

Other plastic product manufacturing industry

C802090

Cleaning supplies manufacturing industry

C802100

Cosmetics manufacturing industry

ZZ99999

Besides licensed business, all other business items those are not banned or restricted

 

l  The raw materials for production are purchased both home and abroad.

l  It is introduced that some facilities for production are purchased from Japan and Europe.

l  Subject imports some technology from Japan.

 

Sales Information

l  Subject is engaged in sales of chemical products such as synthetic resin, etc.

l  The major products sold by subject include ABS resin, SAN resin, PS resin, acrylic resin, PC resin, PC/ABS resin, TPE, Q resin, electronic chemical, optical pmma sheet, MS resin, and ASA resin, etc.

l  Subject’s sales regions include Asia, America, and Europe, etc.

l  Subject’s major customers include house ware manufacturer, packaging manufacturer, communication & electronics manufacturer, and garment manufacturer, etc.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Domestic Purchase (Taiwan and Mainland, China)

Product

Payment Terms

Proportion

Raw materials

COD,CBD, etc

100%

 

Foreign Purchase

Product

Payment Terms

Proportion

Raw materials

CBD, etc

100%

 

Sales

Domestic Markets (Taiwan and Mainland, China)

Product

Sales Terms

Proportion

Industrial chemicals

COD,CBD, Credit Sales, etc

100%

 

Export

Product

Sales Terms

Proportion

Industrial chemicals

CBD, etc

100%

Notes: Subject’s settlement for export is generally in USD

 

 


Balance Sheet

   Unit: NTD/000

Date

2012-6-30

2011-6-30

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

2,113,541.00

1,517,876.00

Available-for-sale financial assets - current

5,207,783.00

47,854.00

Notes receivable - net

73,024.00

124,798.00

Accounts receivable - net

1,649,990.00

1,478,301.00

Accounts receivable - related parties - net

2,741,555.00

3,056,228.00

Other receivables

569,516.00

342,764.00

Inventories

11,635,436.00

14,802,853.00

Other current assets

805,521.00

1,616,135.00

Current assets

24,796,366.00

22,986,809.00

Funds and Investments

 

 

Financial liabilities at fair value through profit or loss-non current

408,347.00

1,000,000.00

Available-for-sale financial assets-non current

7,022,434.00

0.00

Financial assets at cost-non current

1,180,384.00

1,235,570.00

Income from long-term equity investments under the equity method

22,656,430.00

57,483,246.00

Investments

22,656,430.00

57,483,246.00

Other financial assets- non current

78,364.00

87,599.00

Funds and Investments

31,345,959.00

59,806,415.00

Fixed Assets

 

 

Cost

 

 

Land

6,533,449.00

6,533,449.00

Buildings and structures

5,494,314.00

5,319,745.00

Machinery and equipment

33,603,307.00

32,156,632.00

Other facilities

1,717,783.00

1,597,881.00

Revaluation increment

89,525.00

89,525.00

Cost and revaluation increment

47,438,378.00

45,697,232.00

Accumulated depreciation

-31,302,874.00

-29,845,519.00

Accumulated loss-fix asset

-1,070,512.00

-1,070,589.00

Construction in process and prepayment for equipments

3,622,069.00

3,123,111.00

Fixed assets

18,687,061.00

17,904,235.00

Intangible Assets

 

 

Deferred pension cost

5,565.00

36,724.00

Other intangible assets

215,860.00

178,673.00

Intangible assets

221,425.00

215,397.00

Other assets

 

 

Rent assets

851,833.00

884,619.00

Idle assets

1,126,288.00

1,128,936.00

Other assets-other

1,369,316.00

1,467,394.00

Other assets

3,347,437.00

3,480,949.00

Assets

78,398,248.00

104,393,805.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Short-term borrowing

1,043,814.00

1,945,736.00

Notes payable

4,150,000.00

2,950,000.00

Accounts payable

4,162,644.00

6,540,749.00

Accounts payable–related parties

67,701.00

97,028.00

Income tax payable

287,395.00

1,590,240.00

Other payables

1,263,396.00

1,347,150.00

Long-Term Liabilities-Current Portion

0.00

7,250,000.00

Other current liabilities

999,099.00

318,530.00

Current liabilities

11,974,049.00

22,039,433.00

Long term Liabilities

 

 

Long-term loans

23,111,400.00

16,431,400.00

Long term liabilities

23,111,400.00

16,431,400.00

Reserves

 

 

Reserve for land revaluation increment tax

2,320.00

2,320.00

Reserves

2,320.00

2,320.00

Other Liabilities

 

 

Pension reserve / accrued pension liability

527,591.00

464,662.00

Deferred income taxes

373,174.00

310,616.00

Other liabilities - other

506,125.00

1,082,344.00

Other liabilities

1,406,890.00

1,857,622.00

Liabilities

36,494,659.00

40,330,775.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

17,076,760.00

17,262,480.00

Capital Surplus

 

 

Capital surplus - additional paid-in capital

0.00

27,747.00

Capital surplus - long-term equity investments

265,792.00

222,695.00

Capital surplus

265,792.00

250,442.00

Retained Earnings

 

 

Legal reserve

10,055,690.00

10,055,690.00

Special reserve

909,116.00

7,882.00

Unappropriated retained earnings

27,761,989.00

38,825,279.00

Retained earnings

38,726,795.00

48,888,851.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

190,792.00

-516,581.00

Net loss not recognized as pension cost

-282,453.00

-190,763.00

Unrealized gains (losses) on financial instruments

-13,373,335.00

-397,901.00

Unrealized Revaluation Increment

108,148.00

108,148.00

Treasury stock

-808,910.00

-1,341,646.00

Stockholders other equity adjustments

-14,165,758.00

-2,338,743.00

Stockholders-equity

41,903,589.00

(USD 1,399,579,872.60)

64,063,030.00

(USD 2,139,705,202.00)

Number of treasury stock acquired by the company and subsidiaries (unit: share)

25,964,000.00

37,813,000.00

Equivalent shares of outstandings of advance receipts for common stock (unit: share)

0.00

0.00

(As of 2013.03, 1 NTD = 0.0334 USD)

 

 

Profit and Loss Account

 

Unit: NTD/000

Date

2012-1-1~2012-6-30

2011-1-1~2011-6-30

Sales

45,088,854.00

(USD 1,505,967,723.60)

53,465,087.00

(USD 1,785,733,905.80)

Sales returns

545,097.00

544,640.00

Sales

44,543,757.00

52,920,447.00

Operating income

44,543,757.00

52,920,447.00

Cost of sales

40,652,507.00

44,632,663.00

Operating costs

40,652,507.00

44,632,663.00

Gross profit (loss) from operations

3,891,250.00

8,287,784.00

Unrealized gains on intercompany transactions

58,597.00

160,637.00

Realized gains on intercompany transactions

76,521.00

89,282.00

Selling expense

951,284.00

968,167.00

General and administrative expenses

376,103.00

466,910.00

Research and development expenses

539,467.00

447,720.00

Operating expenses

1,866,854.00

1,882,797.00

Operating income (loss)

2,042,320.00

6,333,632.00

Non-Operating Income

 

 

Interest income

7,823.00

4,259.00

Investment income

27,560.00

54,313.00

Dividend income

27,560.00

54,313.00

Gains on sale of investments

0.00

19,421.00

Foreign exchange gains

43,826.00

36,459.00

Rent income

78,543.00

52,916.00

Miscellaneous income

179,374.00

110,174.00

Non-operating revenues and gains

337,126.00

277,542.00

Non-Operating Expenses

 

 

Interest expense

202,785.00

192,308.00

Investment loss recognized under equity method

3,792,581.00

2,897,656.00

Investment losses

3,792,581.00

2,897,656.00

Miscellaneous disbursements

20,451.00

19,622.00

Non-operating expenses and losses

4,015,817.00

3,109,586.00

Income (loss)from continuing operations before income tax

-1,636,371.00

3,501,588.00

Income tax expense (benefit)

254,022.00

1,734,358.00

Income (loss) from continuing operations

-1,890,393.00

1,767,230.00

Net income (loss)

-1,890,393.00

(USD -63,139,126.20)

1,767,230.00

(USD 59,025,482.00)

Primary Earnings per Share

 

 

Income (loss) from continuing operations

-1.12

1.05

Primary earnings per share

-1.12

1.05

Diluted earnings per share

 

 

Income (loss) from continuing operations

-1.12

1.04

Diluted earnings per share

-1.12

1.04

(As of 2013.03, 1 NTD = 0.0334 USD)

 

Cash Flow

 

Unit: NTD/000

Date

2012-1-1~2012-6-30

2011-1-1~2011-6-30

Cash Flows from Operating Activities - Indirect Method

 

 

Net Income (Loss)

(1,890,393)

1,767,230

Adjustment item

 

 

Depreciation Expense

991,733

1,252,414

Amortization Expense

114,107

106,663

Allowance for sales returns and allowances

87,135

241,860

Loss (Gain) on Decline (Recovery) in Market Value, Scrap and Obsolescence of Inventories

129,241

6,247

Investment Loss (Income) Recognized under Equity Method

3,792,581

2,897,656

Received the equity method of invested company cash dividends

17,840

278,997

Loss (Gain) on Disposal of Fix Assets

-1,759

-4,268

Fix assets transferred charges

0

23,491

Decrease (Increase) in Income from long-term equity investments under the equity method

0

4,133

Other adjustment item

0

-23,554

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Notes Receivable

70,993

149,267

Decrease (Increase) in Accounts Receivable

-163,697

-313,778

Decrease (Increase) in Other Receivable

-19,216

101,336

Decrease (Increase) in Inventories

-1,819,933

-5,493,763

Decrease (Increase) in Other Current Assets

-110,380

-96,241

Decrease (Increase) in Deferred Income Tax assets

-55,079

138,441

Increase (Decrease) in Notes Payable

-734,265

1,664,495

Increase (Decrease) in income tax payable

107,982

63,672

Increase (Decrease) in other accounts payable

-508,279

-2,157,493

Increase (Decrease) in Other Current Liabilities

156,310

-445,091

Increase (Decrease) in accrued pension liabilities

-239

-228

Net Cash Provided by (Used in) Operating Activities

164,682

161,486

Cash Flows from Investing Activities

 

 

Disposal of Financial liabilities at fair value through profit or loss

591,653

0

Disposal of Financial assets at cost-non current

0

28,679

Increase in income from long-term equity investments under the equity method

0

-1,135,979

Disposal of the cost income from long-term equity investments under the equity method

0

78,693

Purchase of Property, Plant and Equipment

-1,273,887

-2,997,795

Proceeds from Disposal of Property, Plant and Equipment

2,260

9,842

Purchase of intangible assets

-7,760

-5,992

Increase (Decrease) in other financial assets

19,709

128,153

Increase (Decrease) in other assets

-19,408

-35,737

Net Cash Provided by (Used in) Investing Activities

-687,433

-3,930,136

Cash Flows from Financing Activities

 

 

Increase (Decrease) in short-term borrowing

-161,864

-1,745,850

Increase (Decrease) in payable short-term transactions instruments

-200,000

1,600,000

Bonds redeemed

-5,000,000

0

Long-term loans borrowing

8,590,000

3,270,000

Repay long-term loans

-800,000

-1,100,000

Increase (Decrease) in other liabilities

-284,304

954,462

Issue cash dividend

-1,682,385

-2,557,473

Cost of buying treasury stock

-55,365

-17,547

Net Cash Provided by (Used in) financial Activities

406,082

403,592

Net Increase (Decrease) in Cash and Cash Equivalents

-116,669

-3,365,058

Cash and Cash Equivalents, Beginning of year

2,230,210

4,882,934

Cash and Cash Equivalents, End of year

2,113,541

1,517,876

Supplemental Cash Flow Information

 

 

Income Tax Paid

273,574

255,085

Non capitalized interest-interest paid

273,574

255,085

Payable income tax

201,119

1,532,245

Net cash provided by (used in) no influence on investment and financial activities

 

 

Long-Term Liabilities -Current Portion

0

7,250,000

Fix assets transferred to idle assets

27,263

105,097

Fix assets transferred to deferred charges

2,395

0

Long term equity investment transferred to Available for sale financial assets-current

23,594,234

0

Investing Activities Affecting Both Cash and Non-cash Items

 

 

Pay cash on fix assets

 

 

Increase in fix assets

1,274,148

2,882,340

Increase (Decrease) in payable of purchasing equipment

(261)

115,455

Pay cash on fix assets

1,273,887

2,997,795

 

 

Bankers

 

Subject declined to disclose its bank details; from other source we cannot obtain the relevant information, either.

 

 

 

Public Record

 

Mortgage

No chattel mortgage record of subject has been found within the recent 3 months.

 

Lawsuit

Up to date of reporting, no existing or latent litigation of the subject has been found.

 

 

Interview Details

 

Name

Ms. Liu

Department

Sales Department

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

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%)

 

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.