MIRA INFORM REPORT

 

 

Report Date :

18.04.2014

 

IDENTIFICATION DETAILS

 

Name :

NISHAT (CHUNIAN) LIMITED (NCL)

 

 

Registered Office :

31-Q, Gulberg II, Lahore

 

 

Country :

Pakistan

 

 

Financials (as on) :

30.06.2013

 

 

Date of Incorporation :

14.02.1990

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Manufacturer, Exporter of Cotton Yarn, Fabrics, Garments, Home Textiles, Dyed & Printed Fabrics, Textile Made-ups.

 

 

No. of Employees :

6,000

 

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Pakistan

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 


 

PAKISTAN - ECONOMIC OVERVIEW

 

Decades of internal political disputes and low levels of foreign investment have led to slow growth and underdevelopment in Pakistan. Agriculture accounts for more than one-fifth of output and two-fifths of employment. Textiles account for most of Pakistan's export earnings, and Pakistan's failure to expand a viable export base for other manufactures has left the country vulnerable to shifts in world demand. Official unemployment is under 6%, but this fails to capture the true picture, because much of the economy is informal and underemployment remains high. Over the past few years, low growth and high inflation, led by a spurt in food prices, have increased the amount of poverty - the UN Human Development Report estimated poverty in 2011 at almost 50% of the population. Inflation has worsened the situation, climbing from 7.7% in 2007 to almost 12% for 2011, before declining to 10% in 2012. As a result of political and economic instability, the Pakistani rupee has depreciated more than 40% since 2007. The government agreed to an International Monetary Fund Standby Arrangement in November 2008 in response to a balance of payments crisis. Although the economy has stabilized since the crisis, it has failed to recover. Foreign investment has not returned, due to investor concerns related to governance, energy, security, and a slow-down in the global economy. Remittances from overseas workers, averaging about $1 billion a month since March 2011, remain a bright spot for Pakistan. However, after a small current account surplus in fiscal year 2011 (July 2010/June 2011), Pakistan's current account turned to deficit in fiscal year 2012, spurred by higher prices for imported oil and lower prices for exported cotton. Pakistan remains stuck in a low-income, low-growth trap, with growth averaging about 3% per year from 2008 to 2012. Pakistan must address long standing issues related to government revenues and energy production in order to spur the amount of economic growth that will be necessary to employ its growing and rapidly urbanizing population, more than half of which is under 22. Other long term challenges include expanding investment in education and healthcare, adapting to the effects of climate change and natural disasters, and reducing dependence on foreign donors.

 

Source : CIA

 


company name

 

NISHAT (CHUNIAN) LIMITED (NCL)

 

 

GENERAL INFORMATION

                       

Business Name

Nishat (Chunian) Limited (NCL)

Address

Registered Office:

31-Q, Gulberg II, Lahore, Pakistan

 

Factory address:

Spinning 1, 4 & 5 49th Kilometre, Multan Road, Bhai Pheru, Tehsil Chunian, District Kasur.

 

Dyeing & Printing

4th Kilometre, Manga Road, Raiwind.

 

Spinning 2, 3 & Weaving

49th Kilometre, Multan Road, Kamogal, Tehs il Pattoki, District Kasur.

Telephone

+92-42-35761730-9

Fax

+92-42-35878696-7

Mobile

+92-300-8443311

Sh. Muhammad Saleem - Director

Email                                           

info@nishat.net,

nctex@nctex.com

Website

www.nishat.net

Business activities

Manufacturer, Exporter of Cotton Yarn, Fabrics, Garments, Home Textiles, Dyed & Printed Fabrics, Textile Made-ups.

 

Registry Details

 

CRO Registration Number

0021135

Date of Registration

February 14, 1990

 

Other registry & certification details:

Current Legal Form

Limited Liability Company

National Tax Registration Number

0225898-6

Date of Registration

November 12, 1995

GST Registration Number

0305520204946

Date of Registration & Expiry

May 01, 1992

Chamber of Commerce & Industry

Lahore Chamber of Commerce and Industry

ISO Certification

ISO 9001:2008

Other certifications

Pakistan Textile Mill Association

Date of Registration

Undetermined

 


Capital

 

Type

No. of Shares

Par Value

Total Value

Authorized

250,000,000

PKR. 10/-

PKR.2,500,000,000/-

Issued, Subscribed & Paid-Up

181,986,028

PKR. 10/-

PKR.1,819,860,280/

 

History

 

Who started

Undetermined

When started

1990

Change in management

None

Year of change

N/A

Change in legal status

None

Year of change

N/A

Change in business name

None

Year of change

N/A

 

 

PRINCIPALS (SPONSORS)

 

Name

Number of Shares

Nationality

Appointment Date (Last)

Mr. Shahzad Saleem

Undetermined

Pakistani

March 31, 2012

Mr. Yahya Saleem

Undetermined

Pakistani

April 05, 2012

Mr. Aftab Ahmed Khan

Undetermined

Pakistani

March 31, 2012

Mr. Manzar Mushtaq

Undetermined

Pakistani

March 31, 2012

Mrs. Farhat Saleem

Undetermined

Pakistani

March 31, 2012

Mr. Shahid Malik

Undetermined

Pakistani

June 16, 2013

Mr. Kamran Rasool

Undetermined

Pakistani

June 16, 2013

 

Other share holder

 

Name of Share holder

Number of Shares

Nishat Mills Limited

24,764,652

D.G.Khan Cement Company Limited

5,511,064

Mrs. Ayesha Shahzad

180,643

Others

105,282,434

 

 

KEY MANAGEMENT

 

Name

 

Position in organization

Qualification

Years in employment

Mr. Shahzad Saleem

Chief Executive/Chairman

Not provided

Not provided

Mr. Umar Shahzad

Company Secretary

Not provided

Not provided

Mr. Saqib Riaz

Head of Internal Audit

Not provided

Not provided

 

 

Statutory offices

 

Statutory Auditors

M/s. Riaz Ahmed & Co.

Chartered Accountant

Legal Advisory Services

M/s. Imtiaz Siddique & Associates

 

 

BANKERS

 

Bank name

Approved financing limits

(Rs.)

Allied Bank Limited

1,892,000,000

The Bank of Punjab

1,722,916,669

Dubai Islamic Bank (Pakistan) Limited

560,000,000

United Bank Limited

555,825,000

Soneri Bank Limited

234,375,000

Pak Brunei Investment Company Limited

200,000,000

Pak Kuwait Investment Company (Private) Limited

138,888,896

Burj Bank Limited

105,000,000

Saudi Pak Industrial and Agricultural Investment Company Limited

68,584,390

SAMBA Bank Limited

62,500,000

 

 

DETAILS OF BUSINESS ACTIVITIES

 

The prime focus of NCL is manufacturing and export of Textile products.

 

Purchases (Incl. Imports)

 

Imports from

Japan, UK, China, Germany, Europe, India,

Importing terms

LC basis.

Local (%)

80%

Local buying terms

30 days cash & credit basis.

 

Sales (Incl. Exports)

 

Exports to

Italy, USA, UK, Bangladesh, Europe

Exporting terms

LC/DA basis.

Local (%)

32%

Local selling terms

30 days cash & credit basis.

 

NUMBER OF EMPLOYEES

 

Nature of employment

Current Year

Previous Year

All Staff

6,000

5,600

Total

6,000

5,600

 

 

BUSINESS FACILITIES

 

Registered office Address

Owned / Rented

Area (approx)

31-Q, Gulberg II, Lahore, Pakistan

Not Disclosed

Undetermined

Factory Address

Owned / Rented

Area (approx)

Spinning 1, 4 & 5 49th Kilometre, Multan Road, Bhai Pheru, Tehsil Chunian, District Kasur.

 

Dyeing & Printing

4th Kilometre, Manga Road, Raiwind.

 

Spinning 2, 3 & Weaving 49th Kilometre, Multan Road, Kamogal, Tehsil Pattoki, District Kasur.

 

Details not disclosed

 

 

MARKET REPUTATION

 

During the market check of NCL we contacted various suppliers /customers / competitor of the subject company. In their opinion subject company is a good player of the industry and enjoys a very good reputation in the market. Market sources further mentioned that NCL belongs to ‘Nishat Chunian Group’ which is contains two companies ‘M/s.Nishat Chunian Limited’ and ‘Nishat Power Limited’ which is well known as profitable business in the industry.

 

 

DETAILS OF RELATED BUSINESSES

 

Business Name

City

Line of Business

Percentile of Shareholding

Nishat Mills Limited

Lahore

Textile

13.61

D.G.Khan Cement Company Limited

Lahore

Cement

3.03

 


NCL at a Glance

 

The foundations of Nishat Chunian Ltd. (NCL) were laid in the year 1990. Since its inception as a single spinning unit, the company has expanded and diversified into a manufacturing and finishing operation consisting of five spinning units, one weaving unit, one dyeing & printing unit and one stitching unit. Today, NCL operates with 150,000 spindles and 293 air jet looms with a monthly production capacity of 7.5 million lbs of yarn and 4.0 million yards of greige fabric. The dyeing & finishing unit has a capacity of 3.5 million yards per month supported by an equivalent stitching capacity. This unparalleled growth has been achieved while remaining committed to cutting edge technological innovation and uncompromising product quality.

 

Nishat Chunian Ltd. (NCL) is GOTS certified for the production of 100% Organic yarns, fabrics and finished made-ups, Oeko-Tex certified, Cotton USA certified, Sedex Certified, Lycra Accredited, Supima Licensee, ISO 9001:2008 certified, BSCI , JC Penney, Kohl’s and CT-PAT compliant. NCL is an active member of All Pakistan Textile Mills Association (APTMA), Lahore Chamber of Commerce and Industry (LCCI) and All Pakistan Bedsheets and Upholstery Manufacturers Association  (APBUMA).

 

Nishat Chunian Ltd. (NCL) is listed on Karachi Stock Exchange (www.kse.com.pk) and Lahore Stock Exchange (www.lse.com.pk).Spinning Profile

 

Nishat Chunian Limited has a Ring-spinning capacity of 150,000 spindles producing 50,000 tons of greige yarn per annum. Our state of the art machinery, technical expertise and careful selection of best available raw material result in the finest quality of yarn. NCL has a wide range of brand loyal customers all over the world which comes as a result of consistency in quality, reliability and diversity of the yarns that we produce. We make yarns for multiple end-uses including Denim, Apparel, Shirting, Home Textile and Technical Fabrics. Our major markets include Hong Kong, Mainland China and Europe. Our focus is to maintain consistent quality, on time delivery, after sale service and prompt response to all customer needs.

 

Spinning Products

 

NCL covers a broad range of Ring-spun yarns from Ne 6/1 – 135/1 for multiple end products & applications. We are a market leader in coarse yarns including plain, Slub, Siro and Core-spun stretch yarns for denim and bottom weight fabrics. Our fine Compact Yarns cater to high thread count Sheeting and fine quality Shirting Fabrics. We also produce yarn for work wear, technical fabrics, towels and knitted fabrics. Depending on count and customer requirement, yarns are available in a wide range of local and imported cottons including US Pima, Egyptian, CIS ELS, Australian, Indian, Brazilian & US cottons. We are Supima® and Cotton USA® certified and Lycra® accredited.

 

Yarn Type

Count Range

Composition

End Use

CARDED

Ne 6/1 – 30/1

100% ring-spun cotton

Denim, Upholstery, Work-wear, Apparel, Towels, Hosiery

COMBED

Ne 14/1 – 80/1

Pakistani, Australian, Extra-Long-Staple CIS, Brazilian, PIMA and Egyptian Cottons

Sheeting, Shirting, Circular Knitting, Bottom weight, Denim, Hosiery

COMPACT

Ne 40/1 – 135/1

100% Cotton using Supima, Egyptian Giza, CIS ELS, Australian, US depending on
count & end-use

High quality Shirting & high thread count Sheeting

BLENDED

Ne 14/1 – 80/1

Polyester, Nylon, X-static, Pearl, Tencel Lyocell, CoolMax, Seacell, Amicor, Bamboo, Soyabean, Viscose-Rayon and Metallic Fibers are available blended with Cotton.

Work-wear, Sportswear, Active wear, Towels, Upholstery, Industrial Fabrics

SLUBS

Ne 4.5/1 – 20/1
Ne 6/1 – 40/1 Blended

100% Cotton, Polyester-cotton in various blends

Denim, Upholstery, Curtains, Sweaters, Hosiery

SIRO

Ne 7/1 – 10/1 Carded

100% Cotton

Denim and Apparel

PLIED

2, 3, and 4 ply

Our entire count range is also available in 2, 3 and 4 ply, auto-spliced and knotless

Knitted as well as Woven Fabrics

 

Spinning Machinery

 

The spinning facility consists of five mills with a capacity of 150,000 spindles producing 50,000 tons of yarn per annum. It includes 42,000 spindles with compact attachments from Toyota and Sussen; 26,000 spindles producing Amsler slub yarns and 14,000 spindles equipped with core-spun stretch yarn attachments from Pinter. All mills are equipped with modern Japanese and European machinery, which is regularly upgraded to make use of the latest available technology. Each mill is specially designed to produce its specific count range resulting in unmatched control over yarn quality.

 

 

NCL 1

NCL 2

NCL 3

NCL 4

NCL 5

Blow Room

Trützschler

Trützschler, Rieter

Trützschler, Rieter

Trützschler

Trützschler

Contamination Sorter

Vetal, Loptex

Vetal

Vetal, Loptex

Vetal, Loptex

Vetal

Card

Trützschler DK 803,
903,TC-03

Rieter C 51 H,
Trützschler DK 903

Rieter C 51 H
Trützschler TC 03

Trützschler DK 803,
903,TC-03

Trützschler DK 803,
903,TC-03

Draw Frame

Toyoda DX8-LT,
DX8

Rieter RSB D 30C, Rieter
SB 2 Trützschler TD 03

Toyoda DX8 Trützschler
TD03

Toyoda DYH 500 C,
Rieter RSB-D 30C,
RSB-51

Howa DFK, Rieter RSB
1,DX8,DX8-LT,Rieter
RSB D-30,D-35

Comber

-

Rieter E 7/6,E 62

Rieter E 62

Rieter E 7/6, E 62

-

Simplex

Toyoda FL 100

Toyoda FL 100

Toyoda FL 100

Toyoda FL 16

Howa RME, Toyoda
FL-100

Ring Frame

Toyoda RY 5,RY 4,EJM
128

EJM 128

Toyoda RX 240

Toyoda RX-240,

Howa UA 33F, EJM 128

Autoconer

Murata 21 C, Savio
Orion

Murata 21 C, Savio
Orion

Savio Orion

Murata 21 C, Savio
Orion

Murata 21 C, Savio
Orion,

Twister

-

-

-

-

Murata

 

Weaving Profile

 

Established in 1998, the weaving department consists of 293 air jet looms producing 3 million yards of greige fabric per month. With a combination of state of the art weaving equipment, technical know-how and managerial expertise, NCL Weaving has developed a reputation for quality service and products worldwide.

 

Our in-house spinning helps maintain a better control over quality and facilitates innovative product development, greater product flexibility and shorter lead times. At NCL we cater to the demands of both the local and the international markets. Apparel fabric is exported to the Far East , Europe and North America , whereas the sheeting fabric is mainly exported to high-end US and European buyers. In terms of sales, Nishat Chunian is one of the largest Pakistani exporters of sheeting products to the US.

 

Weaving Products

 

Fabric Category

Design

Description

Composition

Count Range

Width

APPAREL

Twills, Drills,
Broken Twills, Bedford Cords,
Ottomans, Canvases,
Herringbone, Matts, Panamas,
Ribstops

Shirting fabrics with a weight range of 50-150 GSM and Bottoms with a weight range of 200-270GSM.100% Cotton, blends of Cotton with Polyester, Viscose, Linen, Nylon, Lycra, Elaspan and Spandex; Cotton Slub, PC Slub and Slub lycra; Spun Poly and Poly Filament.

100% Cotton, blends of Cotton with Polyester, Viscose, Linen, Nylon, Lycra, Elaspan and Spandex; Cotton Slub, PC Slub and Slub lycra; Spun Poly and Poly Filament.

Shirting: Ne 40/1 – 130/1
Bottoms: Ne 7/1 – 30/1

72 Inches

SHEETING & UPHOLSTERY

Percales, Satins
Striped Sateens, Poplins

Sheeting fabrics of upto 1000 thread count with single ply yarn. Upholstery fabrics made with plied yarns

100% Cotton, blends of Cotton with Polyester, Cool Max, Nylon, Silver, Cashmere, Carbon, Modal, Pearl, Tencel, Bamboo Fiber, Soyabean Fiber, Milk Fiber and Amicor.

Ne 40/1 – 130/1

141 Inches

FANCY ITEMS

Dobby Items

Dobby fabrics made using up to 16 frames.

100% Cotton and blends of Polyester and Cotton.

Ne 20/1–Ne 80/1

128 Inches

STRETCH

One way and two way stretch fabrics

Sheeting and apparel fabrics

Cotton blended with lycra or spandex

Ne 10/1 to Ne 60/1

-

SLUB

Warp slub, weft slub and cross hatch

Upholstery and apparel fabrics

100% cotton and PC slubs

Ne 7/1 to Ne 40/1

-

 

Weaving Machinery

 

The weaving mill consists of state of the art Picanol Omni Plus, Picanol Omni Plus 800 and Toyota jet 710 Air jet in various widths ranging from 110 – 150 inches, providing greater flexibility in catering to customer needs. The Sizing and Warping machinery is manufactured by the renowned European company Benninger-Zell.

 


Highlights

 

Warping

Bendirect-1000-2400-GV/OPTOSTOP-1152

Sizing

Ben-Sizetec ZB32 MWKVDMW CTA4/4/6 PW BBe

Looms

Picanol Omni Plus, Picanol Omni Plus 800 and Toyota jet 710 Air jet

No. Of Looms

293

Model

2003-2010

Widths

280cm, 340cm, 380cm

Special Features

Dobby Attachments, Batching Motions, 4 Color Insertion, Multiple Pick insertion till 8PI.

Compressor

Atlas Copco, Cooper Air Compressor

Air Conditioning

Luwa, Air Plus


Home Textiles Profile

 

The dyeing and printing plant has a capacity of 4.0 million yards per month with an equivalent stitching capacity. These plants are equipped with state of the art machinery specially designed to cater to high thread count fabric.

 

During the dyeing, printing, finishing and stitching processes, several measures are taken to ensure timely delivery of high quality fabric. This includes special care in fabric handling, full width rail stitching, PVA based size recovery, various devices to avoid creases and band mark variation, special unwinding devices, efficient squeezers, a computerized dye dispensing system and an on-line measurement and storage of data at every machine.

 

We have implemented a wide range MIS system that efficiently links all the processes. This information system is installed to minimize idle machinery time, increase productivity and reduce costs, affirming our position as a leading and cost effective supplier.

 

Home Textiles Products

 

The dyed and printed Sheeting range comprises of high density fabrics of unmatched quality with widths up to 340 cm and yarn count range of Ne 20/1 – 100/1. This includes Percales up to 400 thread count and Sateens up to 1000 thread count. Other products in this range include fabrics with upto 6 pick insertion, dobby fabric with intricate designs using 12-14 frames and fabrics made using plied, slub and fancy yarns.

 

In addition to 100% cotton, a number of fibers in various blends are used including Polyester, Viscose, Modal, Tencel, Bamboo, Soyabean, Milk Fiber, Lycra, Cool Max, eVAP, Nylon, Amicor, and Pearl Fiber.

 

Dyes & Finishes

 

We offer a wide range of dyes and finishes which can be adapted in accordance with customer requirements. The various dyeing options include Pigment, Vat, Reactive and Disperse. In printing we have the option of doing Pigment, Soft Pigment, and Reactive Prints.

 

Some of the various finishes we can do are Water Repellant, Soil and Stain Resistant, Wrinkle Free, Anti-microbial, Fragrance, Bleach Resistant, Ultra Soft Hand Feel, Anti-Dustmite and Fire Resistant.

 

Stitching Products


Bed Linen

Products in this category include Flat Sheets, Fitted Sheets, Pillowcases, Pillow Shams, Dec Pillows, Bed Skirts, Duvet Covers and Comforter Shells.

 

Curtains

The product range also includes 100% Cotton & Cotton Polyester Blended Window and Shower Curtains. Some of the different styles that we offer are Tab Top Curtains, Rod Pocket Curtains, Back Tab Curtains, Grommet Curtains and Tie Backs.


Table Linen

 

We produce Table cloth, Table Runner, Napkins and Ruffles Round.

 

Home Textiles Machinery

 

The dyeing and finishing plant is equipped with the latest machinery from Kuesters and Monforts, market leaders in processing technology for wet and dry processes respectively.

  Highlights

 

Singeing and Bleaching

Kuesters

Mercerizing

Kuesters

Pad Steam Range

Kuesters

Thermosol Range

Monforts

Stenter Range

Monforts

Printing Machine

Reggiani

Sanforizing Range

Monforts

Calender

Kuesters

 

NCL Shareholding Structure

 

Shareholders

Percentage

Directors

25.51

Nishat Mills Limited

13.61

 DG Khan Cement Company Limited

3.02

Mutual Funds

20.45

Banks, DFIs, NDFIs, Modarbas & Pension Fund

10.44

Joint Stock Companies

1.12

Others

0.67

General Public

25.18

Total

100.00

 

 

BUSINESS PERFORMANCE

 

Particulars

30-Jun-13

30-Jun-12

 % Change

 

 

 

 

Current assets

     12,396,935,291

      9,724,895,436

        27.48

Current liabilities

     (9,703,454,116)

     (7,622,370,726)

        27.30

Working capital

     2,693,481,175

     2,102,524,710

        28.11

 

 

 

 

Non-current assets

      7,641,232,257

      6,082,201,072

        25.63

Long term liabilities

     (4,201,123,183)

     (3,985,589,955)

          5.41

Net worth

     6,133,590,249

     4,199,135,827

        46.07

 

 

 

 

Turnover

   21,213,244,304

   18,616,942,561

        13.95

Gross Profit

      3,595,566,904

      2,076,797,343

        73.13

EBIT

      3,774,183,070

      2,247,418,498

        67.93

Profit / (Loss) before tax

      2,530,921,404

         893,973,127

      183.11

Provision for taxation

        (254,760,294)

        (194,642,398)

        30.89

Profit / (Loss) after tax

     2,276,161,110

         699,330,729

       225.48

 

 

 

 

Creditors

     1,425,022,011

     1,105,047,161

         28.96

Debtors

     1,158,829,645

         771,096,062

         50.28

Cash & bank balances

         259,237,529

           47,997,011

       440.11

 

 

 

 

Growth trend

 

 

 

Sales growth (%)

13.95%

 

 

Gross profit growth (%)

73.13%

 

 

 

 

 

 

Solvency

 

 

 

Current ratio

                  1.28

                  1.28

 

Quick ratio

                  0.70

                  0.75

 

Total liabilities to net worth ratio (%)

               226.70

               276.44

 

 

 

 

 

Profitability

 

 

 

Return on sales (%)

                  10.73

                    3.76

 

Return on net worth (%)

                  37.11

                  16.65

 

 

 

INTERVIEW & REPORTER COMMENTS

 

Contact person

Mr. Umar Shahzad

Position

Company Secretary

Comments

We made contact with the captioned person and he provided us information and financials as well.

Observations

NCL is considered as one the best company in its line of business.

The office is well built with all the necessary facilities.

The group itself holds a very good reputation in the market.

 

 

 

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.38

UK Pound

1

Rs.101.63

Euro

1

Rs.83.57

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.