MIRA INFORM REPORT

 

 

Report Date :

17.10.2013

 

IDENTIFICATION DETAILS

 

Name :

CARBOROUGH DOWNS COAL SALES PTY LTD

 

 

Registered Office :

Level 11, 100 Creek Street, Brisbane, Queensland, Zip/postal code 4000

 

 

Country :

Australia

 

 

Financials (as on) :

31.12.2012 (Group Consolidated)

 

 

Date of Incorporation :

21.04.2004

 

 

Com. Reg. No.:

108803470

 

 

Legal Form :

Australian Proprietary Company

 

 

Line of Business :

Marketing and exporting of coal produced from Carborough Downs mine located in Central Bowen Basin in central Queensland, Australia.

 

 

No. of Employees :

500 employees (Subject); 70,785 (Vale Group)

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

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 – March 31st 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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

 

The Australian economy has experienced continuous growth and features low unemployment, contained inflation, very low public debt, and a strong and stable financial system. By 2012, Australia had experienced more than 20 years of continued economic growth, averaging 3.5% a year. Demand for resources and energy from Asia and especially China has grown rapidly, creating a channel for resources investments and growth in commodity exports. The high Australian dollar has hurt the manufacturing sector, while the services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. Australia was comparatively unaffected by the global financial crisis as the banking system has remained strong and inflation is under control. Australia has benefited from a dramatic surge in its terms of trade in recent years, stemming from rising global commodity prices. Australia is a significant exporter of natural resources, energy, and food. Australia's abundant and diverse natural resources attract high levels of foreign investment and include extensive reserves of coal, iron, 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 is an open market with minimal restrictions on imports of goods and services. The process of opening up has increased productivity, stimulated growth, and made the economy more flexible and dynamic. Australia plays an active role in the World Trade Organization, APEC, the G20, and other trade forums. Australia has bilateral free trade agreements (FTAs) with Chile, Malaysia, New Zealand, Singapore, Thailand, and the US, has a regional FTA with ASEAN and New Zealand, is negotiating agreements with China, India, Indonesia, Japan, and the Republic of Korea, as well as with its Pacific neighbors and the Gulf Cooperation Council countries, and is also working on the Trans-Pacific Partnership Agreement with Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.

 

Source : CIA

 


IDENTIFICATION DETAILS

 

Verified Address

Subject name :                          CARBOROUGH DOWNS COAL SALES PTY LTD

 

Business address :                    Level 11, 100 Creek Street

Town :                                       Brisbane

Province :                                  Queensland

Zip/postal code :                        4000

Country :                                   Australia

Tel :                                          +61 7 31360500

Fax :                                         +61 7 31360510

Website :                                  www.valeaustralia.com.au

 

Registered address :                  Level 11, 100 Creek Street

Town :                                       Brisbane

Province :                                  Queensland

Zip/postal code :                        4000

Country :                                   Australia

 

Postal address :                        GPO Box 731

Town :                                       Brisbane

Province :                                  Queensland

Zip/postal code :                        4001

Country :                                   Australia

 

 

SUMMARY DETAILS

 

Executive Summary

Date founded or registered :        21/04/2004

Legal form :                               Australian Proprietary Company

Chief executive :                        Robert Jack Skuza

Issued & paid up capital :           AUD 100

Sales turnover :                          AUD 48,753,000,000 (Group-Consolidated 12 months, 31/12/2012)

Net income :                              AUD 5,254,000,000 (Group-Consolidated 12 months, 31/12/2012)

Total fixed assets :                     AUD 131,478,000,000 (Group-Consolidated 12 months, 31/12/2012)

Line of business :                       Marketing and export of coal produced from Carborough Downs mine located in

Central Bowen Basin in central Queensland, Australia.

Staff employed :                         500 employees (Subject); 70,785 (Vale Group)

 

 

CREDIT RISK OPINION

 

Company Analysis

Country risk :                             Country risk is minimal

Operation trend :                        Operational trend is declining

Management experience :           Management is reasonably experienced

Financial performance :              Financial performance is fair

Organization structure :              Organizational structure is stable

Detrimental :                              No detrimental found

Payment history :                      No payment delays noted

 

STATUTORY DETAILS

 

Registry Data

Registration date :                      21/04/2004

Legal form :                               Australian Proprietary Company

Registration no                          Australian Company Number: 108803470

Registered authority :                 Australian Securities and Investments Commission

Fiscal/ Tax no :                          Australian Business Number: 17108803470

Registry status :                        Live/Active

Previous name :                         None reported.

Change of legal form :                 None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

Name :                          Robert Jack Skuza

Designation :                 Managing Director

 

 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

Name :                          Marcelo Muniz Soares De Matos

Designation :                 Director

Appointment date :         04/02/10

Address :                      91 Grange Road

#02-03 Grange Residences

Singapore

Biography :                    Born on 13-08-1974 in Belo Horizonte, Brazil.

 

 

Name :                          Robert Jack Skuza

Designation :                 Director

Appointment date :         12/11/12

Address :                      42 Seaward Crescent

Pallarenda, QLD 4810

Australia

Biography :                    Born on 02-06-1961 in Kielce, Poland.


Name :                          Binod Kumar Singh

Designation :                 Director

Appointment date :         12/11/12

Address :                      13 Rowsley Street

Greenslopes, QLD 4120

Australia

Biography :                    Born on 15-07-1968 in Hazaribagh, Jharkhand, India.

Staff employed :             500 employees (Subject); 70,785 (Vale Group)

 

 

SHARE CAPITAL

 

Composition

Authorized Capital :        AUD 100

No of shares :                100 Ordinary Shares

Share par value :            AUD 1

Issued capital :              AUD 100

Paid up capital :             AUD 100

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed :                   Full List

 

Composition

Shareholder name :        VALE AUSTRALIA (CQ) PTY LTD

Address :                      Level 11, 100 Creek Street

Brisbane, QLD 4000

Australia

No. of shares :               100 Ordinary Shares

% of shares :                 100%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

Name :                          VALE S.A.

Affiliation type :              Ultimate Holding Company

Address :                      Av. Graça Aranha, 26 - Centro

Rio de Janeiro, RJ 20030-900

Brazil

Comments :                  Vale S.A. is a Brazilian multinational diversified metals and mining corporation

and one of the largest logistics operators in Brazil. In addition to being the

second-largest mining company in the world, Vale is also the largest producer of

iron ore, pellets, and second largest of nickel. Vale also produces manganese,

ferroalloys, copper, bauxite, potash, kaolin, alumina and aluminium. In the electric

energy sector, the company participates in consortia and currently operates nine

hydroelectric plants.

 

Vale was incorporated on June 1, 1942. It was listed in Rio de Janeiro Stock

Exchange on October 26, 1943, Săo Paulo Stock Exchange (BOVESPA) on April

04, 1968, Latibex on February 8, 2000, New York Stock Exchange (NYSE) on

June 20, 2000, NYSE Euronext Paris on July 18, 2008 and Hong Kong Stock

Exchange (HKEx) on December 8, 2010. ?

 

Name :                          VALE AUSTRALIA (CQ) PTY LTD

Affiliation type :              Parent Company

Address :                      Level 11, 100 Creek Street

Brisbane, QLD 4000

Australia

 

Name :                          CARBOROUGH DOWNS COAL MANAGEMENT PTY LTD

Affiliation type :              Sister Company

Address :                      Level 11, 100 Creek Street

Brisbane, QLD 4000

Australia

Comments :                  Carborough Downs Coal Management Pty Ltd owns and operates Carborough

Downs mine located in Central Bowen Basin in central Queensland, Australia.

 

Name :                          VALE AUSTRALIA HOLDINGS PTY. LTD.

Affiliation type :              Sister Company

Address :                      Level 11, 100 Creek Street

Brisbane, QLD 4000

Australia

 

Name :                          VALE AUSTRALIA PTY. LTD.

Affiliation type :              Sister Company

Address :                      Level 11, 100 Creek Street

Brisbane, QLD 4000

Australia

 

Related companies and corporate affiliations comments

Other companies of the Vale S.A. should be considered affiliated companies of the Subject.

 

 

BANK & MORTGAGES

 

Bank Details

Name of bank :              Bank of Queensland

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 :                  None reported.

 

Legal Fillings

Bankruptcy fillings :        None reported.

Court judgements :         None reported.

Tax liens :                     None reported.

Others :                                    None reported.

 

 

FINANCIAL DATA

 

Description

Source of financial statement :    Public Record Sources

Financial statement date :          31/12/12

Type of accounts :                     Full audited

Currency :                                 US Dollar (USD)

Consolidation type :                   Group Consolidated                    Group Consolidated

Currency :                                 US Dollar (USD)                         US Dollar (USD)

Denomination :                          (x1) One                                    (x1) One

Date of financial year end :          31/12/12                                    31/12/11

Length of accounts :                   12 months                                 12 months

Sale turnover / Income : 48,753,000,000              62,345,000,000

Profit before tax :                       5,422,000,000                            26,799,000,000

Net income :                              5,254,000,000                            22,652,000,000

Non current assets :                   108,581,000,000                        106,992,000,000

Current assets :                         22,897,000,000              21,736,000,000

Inventories :                               5,052,000,000                            5,251,000,000

Total assets :                            131,478,000,000                        128,728,000,000

Current liabilities :                      12,585,000,000              11,043,000,000

Non current liabilities :                43,017,000,000              38,076,000,000

Total liabilities :                          55,602,000,000                         49,119,000,000

Share equity :                            75,876,000,000              79,609,000,000

 

Comments :                  The group’s consolidated financial information above relates to the Subject’s

Ultimate Holding Company Vale S.A. and all its subsidiaries which includes the

Subject.

 

 

OPERATION DETAILS

 

Main activities :              The Subject engages in marketing and export of coal produced from

Carborough Downs mine located in Central Bowen Basin in central

Queensland, Australia.

 

Vale S.A is the operator of Carborough Downs mine and owns 80% of the

operation since 2007 when the Company entered the Australian market

and acquired assets from AMCI Holdings.


The Carborough Downs mine is owned by Vale S.A (80%), Nippon Steel

Corporation (5%), POSCO (5%), Tata Steel (5%), JFE Steel Corporation

(2.50%) and JFE Shoji Trade Corporation (2.50%).

 

In 2012, the mine produced 1,072,000 metric tons of coal. The mine is

expected to continue producing until 2019, with further potential for the

extension of the mine life beyond that time frame. The mining tenements

for Carborough Downs mine expires in 2035.

 

The Subject is ultimately owned by Vale S.A..

 

Vale S.A. engages in the research, production, and marketing of iron ore

and pellets, nickel, fertilizers, copper, coal, manganese, ferroalloys, cobalt,

platinum group metals, and precious metals in Brazil and internationally. Its

Bulk Material segment engages in the extraction of iron ore and pellet

production, as well as operation of transport systems in Brazil, including

railroads, ports, and terminals related to mining operations. This segment is

also involved in the production of manganese and ferroalloys; and mining

of coal. The company’s Base Metals segment produces non-ferrous

minerals, including nickel and copper; and aluminum products. Vale S.A.’s

Fertilizers segment provides potash, phosphates, and nitrogen. The

company’s Logistic Services segment offers cargo transportation services,

such as rail transport, port, and shipping services for third parties. In

addition, Vale S.A. generates energy through hydroelectric plants and

centers in Brazil, Canada, and Indonesia; and has a natural gas exploration

portfolio of 18 blocks in 4 petroleum basins in Brazil. The company was

formerly known as Companhia Vale do Rio Doce and changed its name to

Vale S.A. in May 2009. Vale S.A. was founded in 1942 and is based in Rio

de Janeiro, Brazil.

 

Note:

 

Vale in Australia

 

Vale entered the Australian market in 2007 following the acquisition of

assets from AMCI Holdings. Our global coal headquarters are based in

Brisbane and across Australia we employ more than 1,300 people. In

Queensland, in addition to operating the Carborough Downs Mine, we are

a part owner of the Isaac Plains Mine. In New South Wales’ Hunter Valley,

we operate the Integra Mine.

 

Product & services :       Metallurgical coal

Pulverized Coal

 

 

Purchases

Local :                          Yes


Sales

International :                             Worldwide

Key events :                              March 14, 2013

 

Vale Seeks to Sell Minority Stakes in Australian Coal Assets

Brazil’s Vale S.A has hired Bank of America to sell minority stakes in two

Australian coal assets, a person familiar with the matter said Thursday.

Vale–the world’s largest iron ore producer–is searching for partners to

invest in two of its undeveloped coal deposits, including the Belvedere

project in Queensland state.

 

Last month, Vale completed the purchase of the remaining 24.5% it didn’t

own in Belvedere, a proposed underground mining development in the

southern Bowen Basin, from Aquila Resources Ltd. after the companies

settled a long-running dispute over its valuation.

 

Vale had originally exercised an option to acquire Aquila’s stake in

mid-2010 around the same time that it also bought an interest of similar

size from AMCI Investments.

 

According to an environmental impact statement updated in November, the

Belvedere project will require 2 billion Australian dollars (US$2.06 billion) of

investment and is due to be completed in 2016. Initial production is forecast

at up to 2 million tons of coal a year, rising to 7 million tons later.

 

Vale’s other non-producing Australian assets include a 50% stake in the

Eagle Downs coking coal deposit. Aquila owns the remaining interest.

Aquila last year said it was seeking a co-investor for the Eagle Downs

project in order to help fund its development. The Perth-based company

needs A$640 million to fund its 50% share of the project through to the first

100,000 metric tons of coal production.

 

Vale’s larger assets include an 80% stake in the underground Carborough

Downs mine, which coking metallurgical coal, a 50% stake in the open-pit

Isaac Plains coal mine, and a 61% stake in the Integra coal complex, which

produced thermal and coking coal from open-pit and underground

operations.

 

Source: Wall Street Journal

 

March 1, 2013

 

Vale takes hit as coal prices fall

 

BRAZILIAN mining giant Vale has taken a $US1 billion write-down against

the value of the Australian coal mines it acquired in 2007, blaming

softening coal prices.

 

On Wednesday, Sao Paulo time, Vale reported a net loss for the December

quarter and a 76 per cent slump in net earnings to $US5.5 billion in 2012,

 

 

dragged down by $US5.7 billion in impairments, including the charge

against the Australian coal assets that were bought from AMCI for $835

million plus net debt.

 

Vale's coal and fertilisers chief Roger Downey blamed the Australian

write-downs on weak market conditions, including ''lower prices than we

had when those assets were acquired''. Vale operates the Carborough

Downs mine and part-owns the Isaac Plains mine in Queensland's northern

Bowen Basin, and operates the Camberwell/Integra mine in the New South

Wales Hunter Valley.

 

Analysts expect all three mines would be marginal at current coal prices.

According to Metalytics data, the mines' total production costs - including

rail to port and loading on a ship - at Carborough Downs are about $160 a

tonne, at Isaac Plains are $142 a tonne and at Camberwell - probably the

most profitable asset - are $125 a tonne.

 

UBS predicts hard coking coal prices will average $160 a tonne over the

next 12 months to 18 months, while lower-grade PCI coal will fetch $140 a

tonne, semi-soft coking coal $120 a tonne and thermal coal $95 a tonne.

UBS analyst Tom Price said producers were typically conservative in their

outlook for commodity prices. He expects coal prices to decline over the

next five years due partly to increased supply.

 

Mr Price said the BHP Billiton Mitsubishi Alliance, Rio Tinto, Xstrata and

Anglo American had been ''flat out for five years now, pumping record met

coal volumes''.

 

If they could not trim costs, he said, there was ''a risk they'll have to close

some assets down''. After record profitability in 2011, Vale's revenues fell

23 per cent in 2012 and underlying earnings more than halved, due to

lower commodity prices. Vale described 2012 as a ''challenging year for the

world economy'' that led to a ''generalised decline in minerals and metals

prices, with the exception of gold''.

 

Vale's coal division reported record output as its Moatize mine in

Mozambique ramped up production. The group is the world's largest iron

ore miner and shipped a record 303 million tonnes last year. It said the

write-downs were lower than recent ones from peers Rio and BHP. Other

write-downs included $US2.85 billion against its Onca Puma nickel project

in Brazil and $US975 million against its Norsk Hydro stake.

www.smh.com.au

 

28 August, 2012

Vale lifts force majeure at Carborough Downs

 

Vale has announced that it has lifted force majeure at the Carborough

Downs metallurgical coal operation in the central Bowen basin in

Queensland, Australia. Force majeure was declared at the end of May

2012, following the detection of abnormal levels of carbon monoxide in the

mine. No employees were adversely affected and no environmental

damage occurred.

Carborough Downs has resumed production at a safe rate. Output will

gradually normalise as the remaining operational and geological issues are

resolved. In the second quarter of 2012, Carborough Downs produced

82,000 metric t of metallurgical coal.

Source: www.energyglobal.com

 

1 June, 2012

 

Vale SA Suspends Operations of Australian Carborough Downs Coal Mine

 

Vale SA, the world's largest iron ore miner, on Thursday announced it is

suspending the operations of its Carborough Downs coal mine in Australia

in compliance to a government directive after irregular levels of carbon

monoxide were detected in the mine.

 

The Queensland State Inspectorate for Mines, in a May 29 directive to Vale

SA, likewise ordered for the immediate evacuation of all employees

working in the mine.

 

This was the second that a mine of Vale SA was forced to temporarily

close down due to mine accidents and/or health concerns. Also in May, the

world's second-largest producer of nickel suspended operations at its Goro

Project on the French Pacific island of New Caledonia due to an accident

at the sulphuric acid plant at the mine.

 

Vale SA estimated about 7,700 tonnes of coal has been lost since Tuesday

this week. The coal produced by the Carborough Downs mine is mainly

used for metallurgical operations. Vale SA said all affected consumers

have been aptly and properly informed of the unfortunate and ill-timed

closure.

 

The Carborough Downs mine in Australia, in the first quarter of the year,

had produced 325,000 tonnes of coal, Vale SA said.

 

The Brazilian miner is closely working with the Queensland State

Inspectorate for Mines for the immediate resumption of the mine's

operations.

 

Source: www.au.ibtimes.com

 

Property & Assets

 

Premises :                                The Subject operates from the verified heading address consisting of an

administrative office.

 

Branches :                                None reported.


 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

Central bank :                                        Reserve Bank of Australia

 

Reserve of foreign exchange & gold :       US$ 46.714 billion

 

Gross domestic product - GDP :             US$ 1.586 trillion

 

GPP (Purchasing power parity) :             954.296 billion of International dollars

 

GDP per capita - current prices :             US$ 68,916

 

GDP - composition by sector :               agriculture: 4%

industry: 25.6%

services: 70.4%

 

Inflation :                                               2010: 2.8%

2011: 3.4%

2012: 2.7%

 

Unemployment rate :                              2010: 5.2%

2011: 5.1%

2012: 5.2%

Public debt

(General Government gross debt as

a % GDP)                                             2010: 20.4%

2011: 22.9%

2012: 24%

 

Government bond ratings :                      Standard & Poor's: AAA

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded shares      : US$1.198 trillion

 

Largest companies in the country :          Qantas Airways (Airline),Coca-Cola Amatil (Beverages), CSL (Biotechs),

Brambles (Business & Personal Services),Crown Ltd (Casinos &  aming), Amcor (Containers & Packaging),Suncorp-Metway (Diversified Insurance), BHP Billiton (Diversified Metals & Mining),Newcrest Mining (Diversified Metals & Mining), Orica (Diversified Metals & Mining), Iluka Resources (Diversified Metals & Mining), Origin Energy (Electric Utilities), AGL Energy (Electric Utilities), Wesfarmers (Food Retail), Woolworths (Food Retail), Metcash (Food Retail), Macquarie Group (Investment services), AMP (Investment services), Challenger Ltd (Investment services), Fortescue Metals Group (Iron & Steel), Bluescope Steel (Iron & Steel), Commonwealth Bank (Major Banks), Westpac Banking Group (Major Banks), National Australia Bank (Major Banks), ANZ (Major Banks), Woodside Petroleum (Oil & Gas Operations), Santos (Oil & Gas Operations), Caltex Australia (Oil & Gas Operations), WorleyParsons (Oil Services & Equipment), Toll Holdings (Other Transportation), Transurban Group (Other Transportation), QBE Insurance Group (Property & Casualty Insurance), Insurance Australia Group (Property & Casualty Insurance), QR National (Railroads), Westfield Group (Real Estate), Stockland Australia (Real Estate), Westfield Retail Trust (Real Estate), Lend Lease (Real Estate), CFS Retail Property Trust (Real Estate), Goodman Group (Real Estate), Bendigo & Adelaide Bank (Regional Banks), Bank of Queensland (Regional Banks), Incitec Pivot (Specialized Chemicals), Telstra (Telecommunications Services)

 

Trade & Competitiveness Overview

Total exports :                           US$263.9 billion

Exports commodities :               Coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport

equipment

Total imports :                           US$239.7 billion

Imports commodities :                Machinery and transport equipment, computers and office machines,

telecommunication equipment and parts; crude oil and petroleum products

 

Export - major partners :             China 27.4%, Japan 19.2%, South Korea 8.9%, India 5.8%

Import - major partners :             China 18.5%, US 11.4%, Japan 7.9%, Singapore 6.3%, Germany 4.7%

 

FDI Inflows :                              2009: US$26,554 million

2010: US$35,556 million

2011: US$41,317 million

 

FDI Outflows :                            2009: US$16,693 million

2010: US$12,791 million

2011: US$19,999 million

Best countries for doing business : 10 out of 185 countries

 

Global competitiveness ranking : 20 (ranking by country on a basis of 144, the first is the best)

 

 

Country and Population Overview

Total population :                       22.68 million

Total area :                                7,692,024 km2

Capital :                                    Canberra

Currency :                                 Australian dollars (AUD)

Internet users as % of total

Population                                 79%


PAYMENT HISTORY

PAY

Purchase Term

Local :                          Bank transfer, D/P, Credit up to 120 days

 

 

Sales Term

International :                 L/C, D/P, Credit up to 120 days

 

 

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


NT HISTORY

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.69

UK Pound

1

Rs.98.59

Euro

1

Rs.83.67

 

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.