MIRA INFORM REPORT

 

 

Report Date :

09.04.2014

 

IDENTIFICATION DETAILS

 

Name :

BAOSTEEL RESOURCES SINGAPORE COMPANY PTE. LTD.

 

 

Registered Office :

7, Temasek Boulevard, 27 - 01a, Suntec Tower One, 038987

 

 

Country :

Singapore 

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

13.07.2012

 

 

Com. Reg. No.:

201217400-C

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

·         engaged in the trading of all kinds of steel and steel-related products. 

·         supplier of high-tech and high value-added steel products, including carbon steel, stainless steel and special steel, in the series of cold rolled sheets or coils, hot rolled plates or coils, long products and tubular products which are used in industries as automobile, household appliances, oil exploration, oil and gas transmission, shipbuilding, boiler and pressure vessel, electrical equipments & food and beverage packaging, construction.

 

 

No. of Employees

10 [2014]

 

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 :

Slow

 

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

Singapore 

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Singapore ECONOMIC OVERVIEW

 

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. The economy contracted 0.8% in 2009 as a result of the global financial crisis, but rebounded 14.8% in 2010, on the strength of renewed exports, before slowing to in 2011-13, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

 

Source : CIA

 


* Adopted abbreviations :

SC - Subject Company (the company enquired by you)

 

N/A - Not Applicable

 

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

201217400-C

COMPANY NAME

:

BAOSTEEL RESOURCES SINGAPORE COMPANY PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

13/07/2012

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED company

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

7, TEMASEK BOULEVARD, 27 - 01A, SUNTEC TOWER ONE, 038987, SINGAPORE.

BUSINESS ADDRESS

:

7, TEMASEK BOULEVARD, 27 - 01A, SUNTEC TOWER ONE, 038987, SINGAPORE.

TEL.NO.

:

65-68222828

FAX.NO.

:

65-68222727

CONTACT PERSON

:

YUAN ZHENYU ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADE OF ALL KINDS OF STEEL AND STEEL-RELATED PRODUCTS

ISSUED AND PAID UP CAPITAL

:

30,000,000.00 ORDINARY SHARE, OF A VALUE OF USD 30,000,000.00 

SALES

:

USD 3,166,600 [2012]

NET WORTH

:

USD 29,788,025 [2012]

STAFF STRENGTH

:

10 [2014]

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

POOR

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND

 

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

 

The Subject is principally engaged in the (as a / as an) trade of all kinds of steel and steel-related products.

 

The immediate holding company of the Subject is BAOSTEEL RESOURCES INTERNATIONAL COMPANY LIMITED, a company incorporated in HONG KONG.

 

The ultimate holding company of the Subject is BAOSTEEL GROUP CORPORATION, a company incorporated in CHINA.

 

Share Capital History

Date

Issue & Paid Up Capital

09/04/2014

USD 30,000,000.00

 

The major shareholder(s) of the Subject are shown as follows :


Name

Address

IC/PP/Loc No

Shareholding

(%)

BAOSTEEL RESOURCES INTERNATIONAL COMPANY LIMITED

FLAT/RM 2901, 29/F, OFFICE TOWER CONVENTION PLAZA 1, HARBOUR ROAD WANCHAI, HONG KONG.

T09UF2164

30,000,000.00

100.00

---------------

------

30,000,000.00

100.00

============

=====

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

YUAN ZHENYU

Address

:

ROOM 2303, 23/F, BLOCK E, KORNHILL QUARRY BAY, HONG KONG.

IC / PP No

:

P00761118

Nationality

:

CHINESE

Date of Appointment

:

13/07/2012

 

DIRECTOR 2

 

Name Of Subject

:

DING SHOUHU

Address

:

32, LORONG MYDIN, 14 - 09, ASTORIA PARK, 416826, SINGAPORE.

IC / PP No

:

G5347224P

Nationality

:

CHINESE

Date of Appointment

:

13/05/2013

 


DIRECTOR 3

Name Of Subject

:

LI QINGYU

Address

:

ROOM 2202, 168, XINZHA ROAD, HUANGPU DISTRICT SHANGHAI, CHINA.

IC / PP No

:

P01120630

Nationality

:

CHINESE

Date of Appointment

:

13/07/2012



MANAGEMENT

 

 

 

1)

Name of Subject

:

YUAN ZHENYU

Position

:

DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

DELOITTE & TOUCHE LLP

Auditor' Address

:

N/A

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

ABDUL JABBAR BIN KARAM DIN

IC / PP No

:

S6936625B

Address

:

21, SIGLAP HILL, FARNKEL ESTATE, 456076, SINGAPORE.

 

2)

Company Secretary

:

CHAN POH KUAN

IC / PP No

:

S1637928Z

Address

:

863, TAMPINES STREET 83, 10-484, 520863, SINGAPORE.

 

 

BANKING


No Banker found in our databank. 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation. 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank against the Subject whether the subject has been involved in any litigation. 

No legal action was found in our databank. 

No winding up petition was found in our databank. 

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A


The Subject refused to disclose its suppliers. 

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

X

]

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

Export Market

:

ASIA

Credit Term

:

N/A

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 


OPERATIONS

 

Goods Traded

:

STEEL AND STEEL-RELATED PRODUCTS

 

Total Number of Employees:

YEAR

2014

GROUP

N/A

COMPANY

10

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) trade of all kinds of steel and steel-related products. 

The Subject mainly supply high-tech and high value-added steel products, including carbon steel, stainless steel and special steel, in the series of cold rolled sheets or coils, hot rolled plates or coils, long products and tubular products. They are widely used in industries as automobile, household appliances, oil exploration, oil and gas transmission, shipbuilding, boiler and pressure vessel, electrical equipments & food and beverage packaging, construction.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-68222828

Match

:

N/A

Address Provided by Client

:

7, TEMASEK BOULEVARD, 27-01 A SUNTEC TOWER ONE, SINGAPORE 038987

Current Address

:

7, TEMASEK BOULEVARD, 27 - 01A, SUNTEC TOWER ONE, 038987, SINGAPORE.

Match

:

YES

 

 

Other Investigations

we contacted one of the staff from the Subject and she provided some information.



FINANCIAL ANALYSIS

 

 

Profitability

Return on Shareholder Funds

:

Unfavourable

[

(0.71%)

]

Return on Net Assets

:

Unfavourable

[

(0.71%)

]

The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Nil

[

0 Days

]

Debtor Ratio

:

Unfavourable

[

365 Days

]

Creditors Ratio

:

Unfavourable

[

365 Days

]

As the Subject is a service oriented company, the Subject does not need to keep stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

Liquidity

Liquid Ratio

:

Favourable

[

10.54 Times

]

Current Ratio

:

Favourable

[

10.54 Times

]

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Nil

[

0.00 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The Subject's interest cover was nil as it did not pay any interest during the year. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

Overall Assessment :

The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.

Overall financial condition of the Subject : FAIR

 


 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

 

Major Economic Indicators :

2008

2009

2010

2011

2012

 

Population (Million)

4.84

4.98

5.08

5.18

5.31

Gross Domestic Products ( % )

1.5

(0.8)

14.5

4.9

1.3

Consumer Price Index

6.6

0.6

2.8

5.2

4.6

Total Imports (Million)

450,892.6

356,299.3

423,221.8

459,655.1

474,554.0

Total Exports (Million)

476,762.2

391,118.1

478,840.7

514,741.2

510,329.0

 

Unemployment Rate (%)

2.2

3.2

2.2

2.1

2.0

Tourist Arrival (Million)

10.12

9.68

11.64

13.17

14.37

Hotel Occupancy Rate (%)

81.0

75.8

85.6

86.5

86.4

Cellular Phone Subscriber (Million)

1.31

1.37

1.43

1.50

1.52

 

Registration of New Companies (No.)

25,327

26,414

29,798

32,317

31,892

Registration of New Companies (%)

(2.2)

4.3

12.8

8.5

(1.3)

Liquidation of Companies (No.)

10,493

22,393

15,126

19,005

17,218

Liquidation of Companies (%)

13.7

113.4

(32.5)

25.6

9.4

 

Registration of New Businesses (No.)

24,850

26,876

23,978

23,494

24,788

Registration of New Businesses (%)

0.36

8.15

(10.78)

2.02

5.51

Liquidation of Businesses (No.)

21,150

23,552

24,211

23,005

22,489

Liquidation of Businesses (%)

(0.8)

11.4

2.8

(5)

(2.2)

 

Bankruptcy Orders (No.)

2,326

2,058

1,537

1,527

1,748

Bankruptcy Orders (%)

(15.9)

(11.5)

(25.3)

(0.7)

14.5

Bankruptcy Discharges (No.)

1,500

3,056

2,252

1,391

1,881

Bankruptcy Discharges (%)

(7.7)

103.7

(26.3)

(38.2)

35.2

 

INDUSTRIES ( % of Growth ) :

Agriculture

Production of Principal Crops

(0.32)

3.25

(0.48)

4.25

3.64

Fish Supply & Wholesale

(6.31)

(1.93)

(10.5)

12.10

(0.5)

 

Manufacturing *

74.6

71.5

92.8

100.0

100.3

Food, Beverages & Tobacco

94.8

90.4

96.4

100.0

103.5

Textiles

180.1

145.9

122.1

100.0

104.0

Wearing Apparel

334.6

211.0

123.3

100.0

92.1

Leather Products & Footwear

128.2

79.5

81.8

100.0

98.6

Wood & Wood Products

132.0

101.4

104.0

100.0

95.5

Paper & Paper Products

101.0

95.4

106.1

100.0

97.4

Printing & Media

118.2

100.9

103.5

100.0

93.0

Crude Oil Refineries

113.1

96.4

95.6

100.0

99.4

Chemical & Chemical Products

84.5

80.3

97.6

100.0

100.5

Pharmaceutical Products

43.7

49.1

75.3

100.0

109.7

Rubber & Plastic Products

120.1

101.2

112.3

100.0

96.5

Non-metallic Mineral

96.5

91.9

92.5

100.0

98.2

Basic Metals

109.8

92.6

102.2

100.0

90.6

Fabricated Metal Products

101.3

90.8

103.6

100.0

104.3

Machinery & Equipment

65.0

57.3

78.5

100.0

112.9

Electrical Machinery

81.7

86.8

124.1

100.0

99.3

Electronic Components

93.1

85.2

113.6

100.0

90.6

Transport Equipment

102.0

96.0

94.0

100.0

106.3

 

Construction

45.90

(36.9)

14.20

20.50

28.70

Real Estate

(11.2)

1.4

21.3

25.4

31.9

 

Services

Electricity, Gas & Water

(1.3)

1.70

4.00

7.00

6.30

Transport, Storage & Communication

11.60

3.90

12.80

7.40

5.30

Finance & Insurance

(5.9)

(16.4)

(0.4)

8.90

0.50

Government Services

17.40

4.50

9.70

6.90

6.00

Education Services

0.50

0.10

(0.9)

(1.4)

0.30

 

* Based on Index of Industrial Production (2011 = 100)

(Source : Department of Statistics)

 

INDUSTRY ANALYSIS

 

INDUSTRY :

TRADING

The wholesale and retail trade sector contracted by 1.5% in the fourth quarter of 2012, extending the 0.2% decline in the preceding quarter. For the whole of 2012, the sector declined by 0.7%, reversing the 1.6% growth in 2011. The sector was weighed down primarily by the wholesale trade segment. In 2012, the wholesale trade segment contracted by 1.0%, a reversal from the 1.4% growth in 2011. Growth of the retail trade segment also moderated to 2.0%, from 3.2% in the year 2011.

The domestic wholesale trade index grew by 1.2% in the fourth quarter of 2012, an improvement from the 5.4% decline in the third quarter. This was partly due to an increase in the sales of chemicals & chemical products and ship chandlers & bunkering. For the full year of 2012, the domestic wholesale trade index contracted by 2.2%, extending the 1.7% decline in 2011. The foreign wholesale trade index grew by 8.6% in the fourth quarter, an increase from the 6.6% growth in the third quarter. The expansion was partly due to resilient sales of petroleum & petroleum products. For the whole of 2012, the foreign wholesale trade index expanded by 9.1%, faster than the 4.3% increase in 2011.

In the fourth quarter of 2012, retail sales volume declined by 2.0%, extending the 0.3% decline in the third quarter. Excluding motor vehicles, retail sales volume grew by 0.4%, a slight moderation compared to the 1.5% gain in the third quarter of 2012. The sales volume of motor vehicles fell by 11% in the fourth quarter of 2012, after contracting by 6.1% in the third quarter. The sales of several discretionary items also declined in the fourth quarter. Besides, the sales of optical goods & books in 2012 fell by 3.6%, while the sales of telecommunications apparatus & computers declined by 1.4%. 

For 2012 as a whole, retail sales volume grew by 1.3%, compared to the 2.0% expansion in 2011. Excluding motor vehicle sales, the increase in retail sales volume also moderated from 5.4% in 2011 to 1.7% in 2012. Medical goods & toiletries registered the largest increase (9.3%) in sales, followed by telecommunications apparatus & computers (6.9%). By contrast, the sales of watches & jewellery (-2.2%) and optical goods & books (-3.6%) declined.

OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH

 

CREDIT RISK EVALUATION & RECOMMENDATION

 

 

Incorporated in 2012, the Subject is a Private Limited company, focusing on trade of all kinds of steel and steel-related products. Having been in the industry for only 2 years, the Subject is growing fast with a paid up capital of USD 30,000,000. With a huge paid up capital, the Subject is allowed to expand its business comfortably. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. 

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject's business operation is supported by 10 employees. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject. 

The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. The Subject however is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at USD 29,788,025, the Subject should be able to maintain its business in the near terms. 

The poor payment habit may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies. 

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry. 

Based on the above condition, we recommend credit be granted to the Subject normally.

 

 

PROFIT AND LOSS ACCOUNT

 

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH SINGAPORE FINANCIAL REPORTING STANDARDS.

BAOSTEEL RESOURCES SINGAPORE COMPANY PTE. LTD.

 

Financial Year End

2012-12-31

Months

12

Consolidated Account

Company

Audited Account

YES

Unqualified Auditor's Report (Clean Opinion)

YES

Financial Type

FULL

Currency

USD

TURNOVER

3,166,600

Other Income

43,436

----------------

Total Turnover

3,210,036

Costs of Goods Sold

(3,088,550)

----------------

Gross Profit

121,486

----------------

PROFIT/(LOSS) FROM OPERATIONS

(211,975)

----------------

PROFIT/(LOSS) BEFORE TAXATION

(211,975)

----------------

PROFIT/(LOSS) AFTER TAXATION

(211,975)

----------------

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

(211,975)

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(211,975)

=============

 

BALANCE SHEET

 

 

BAOSTEEL RESOURCES SINGAPORE COMPANY PTE. LTD.

 

LONG TERM INVESTMENTS/OTHER ASSETS

Others

60,142

----------------

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

60,142

INTANGIBLE ASSETS

Others

9,079

----------------

TOTAL INTANGIBLE ASSETS

9,079

----------------

TOTAL LONG TERM ASSETS

69,221

CURRENT ASSETS

Trade debtors

3,166,600

Other debtors, deposits & prepayments

82,194

Short term deposits

27,002,100

Cash & bank balances

2,584,040

----------------

TOTAL CURRENT ASSETS

32,834,934

----------------

TOTAL ASSET

32,904,155

=============

CURRENT LIABILITIES

Trade creditors

3,088,550

Other creditors & accruals

27,580

----------------

TOTAL CURRENT LIABILITIES

3,116,130

----------------

NET CURRENT ASSETS/(LIABILITIES)

29,718,804

----------------

TOTAL NET ASSETS

29,788,025

=============

SHARE CAPITAL

Ordinary share capital

30,000,000

----------------

TOTAL SHARE CAPITAL

30,000,000

RESERVES

Retained profit/(loss) carried forward

(211,975)

----------------

TOTAL RESERVES

(211,975)

----------------

SHAREHOLDERS' FUNDS/EQUITY

29,788,025

----------------

29,788,025

=============

 

 

 

FINANCIAL RATIO

 

 

BAOSTEEL RESOURCES SINGAPORE COMPANY PTE. LTD.

 

TYPES OF FUNDS

Cash

29,586,140

Net Liquid Funds

29,586,140

Net Liquid Assets

29,718,804

Net Current Assets/(Liabilities)

29,718,804

Net Tangible Assets

29,778,946

Net Monetary Assets

29,718,804

BALANCE SHEET ITEMS

Total Borrowings

0

Total Liabilities

3,116,130

Total Assets

32,904,155

Net Assets

29,788,025

Net Assets Backing

29,788,025

Shareholders' Funds

29,788,025

Total Share Capital

30,000,000

Total Reserves

(211,975)

LIQUIDITY (Times)

Cash Ratio

9.49

Liquid Ratio

10.54

Current Ratio

10.54

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

Debtors Ratio

365

Creditors Ratio

365

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

Liabilities Ratio

0.10

Times Interest Earned Ratio

0.00

Assets Backing Ratio

1.00

PERFORMANCE RATIO (%)

Operating Profit Margin

(6.69)

Net Profit Margin

(6.69)

Return On Net Assets

(0.71)

Return On Capital Employed

(0.71)

Return On Shareholders' Funds/Equity

(0.71)

Dividend Pay Out Ratio (Times)

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0





FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.95

UK Pound

1

Rs.99.36

Euro

1

Rs.82.15

                

INFORMATION DETAILS

 

Analysis Done by :

Div

 

 

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

 

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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%)

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.