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Report Date : |
23.04.2014 |
IDENTIFICATION DETAILS
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Name : |
SAUDI ARABIAN OIL COMPANY (SAUDI ARAMCO) |
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Registered Office : |
Saudi Aramco Compound, |
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Country : |
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Date of Incorporation : |
13.11.1988 |
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Legal Form : |
Government Corporation |
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Line of Business : |
Subject is involved in all phases of oil and gas production, refining,
transportation and marketing. |
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No. of Employees : |
56,066 |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Saudi Arabia |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
|
Very High Risk |
D |
SAUDI ARABIA - ECONOMIC OVERVIEW
Saudi Arabia has an oil-based
economy with strong government controls over major economic activities. It
possesses about 16% of the world's proven petroleum reserves, ranks as the
largest exporter of petroleum, and plays a leading role in OPEC. The petroleum
sector accounts for roughly 80% of budget revenues, 45% of GDP, and 90% of
export earnings. Saudi Arabia is encouraging the growth of the private sector
in order to diversify its economy and to employ more Saudi nationals. Diversification
efforts are focusing on power generation, telecommunications, natural gas
exploration, and petrochemical sectors. Over 6 million foreign workers play an
important role in the Saudi economy, particularly in the oil and service
sectors, while Riyadh is struggling to reduce unemployment among its own
nationals. Saudi officials are particularly focused on employing its large
youth population, which generally lacks the education and technical skills the
private sector needs. Riyadh has substantially boosted spending on job training
and education, most recently with the opening of the King Abdallah University
of Science and Technology - Saudi Arabia's first co-educational university. As
part of its effort to attract foreign investment, Saudi Arabia acceded to the
WTO in 2005. The government has begun establishing six "economic
cities" in different regions of the country to promote foreign investment
and plans to spend $373 billion between 2010 and 2014 on social development and
infrastructure projects to advance Saudi Arabia's economic development.
|
Source
: CIA |
Company Name : SAUDI ARABIAN OIL COMPANY (SAUDI
ARAMCO)
Country of Origin :
Saudi Arabia
Legal Form :
Government Corporation
Registration Date :
13th November 1988
Total Workforce :
56,066
Activities :
Oil and gas company
Financial Condition :
Undetermined
Payments :
Nothing detrimental uncovered
SAUDI ARABIAN OIL COMPANY (SAUDI ARAMCO)
Registered &
Physical Address
Location : Saudi Aramco
Compound
Street : Al Dhahran
High Street
PO Box : 5000 & 1565
Town : Dhahran
31311
Country : Saudi Arabia
Telephone : (966-3) 8754915
/ 8756110 / 8747400 / 8770110 / 8730115 / 8720110
Facsimile : (966-3)
8738490 / 8738190
Email : webmaster@aramco.com
Premises
Subject operates from a large suite of offices and processing facilities
that are owned and located in the Industrial Area of Dhahran.
Branch Office (s)
Location Description
PO Box: 73 Owned
office premises
Jeddah
Tel: (966-2) 6534655 / 6654261
PO Box: 319 Owned
office premises
Riyadh
Tel: (966-1) 4562100 / 4641055
Saeed Tower Owned
office premises
Dammam Al Khobar Highway
Al Khobar 31952
Tel: (966-3) 8746272
Industrial Development Division Owned
office premises
PO Box: 2239
Dhahran 31311
Tel: (966-3) 8572438
Fax: (966-3) 8573138
King Abdulaziz Center for World Culture Projects Owned office premises
Room A05, SAPMT Site Office
Dhahran 31311
Name Position
H.E. Ali I. Al Naimi Chairman
Khalid A Al Falih President
& Chief Executive Officer
HE Dr Abdul Rahman A. Al Tuwaijri Director
HE Dr Ibrahim A. Al Assaf Director
HE Dr Mohamed I. Al Suwaiyel Director
Abdulaziz F Al Khayyal Director
Dr Khaled S Al Sultan Director
Ali I Al Naimi Director
Peter L Woicke Director
James W Kinnear Director
Sir Mark Moody-Stuart Director
Salim S Al Aydh Director
Mohammad A Al Ali Director
Khalid G Al Buainain Director
David B Kultgen Director
Amin H Nasser Director
Abdulrahman F Al Wuhaib Director
Abdullatif A Al Othman Finance
Manager
Registration
Details : Saudi Arabian Oil
Company (Saudi Aramco) was incorporated on 13th November 1988 by the
government of Saudi Arabia as a national oil company to assume the
responsibilities of the Arabian American Oil Company (Aramco). Aramco was a US
Company owned by the state of Saudi Arabia, and run in co-operation with four
US Oil companies – Chevron Corp, Exxon Corp, Mobil Corp, and Texaco Inc.
On 14th June 1993 subject was
merged with Saudi Arabian Marketing & Refining Co (Samarec) which was
responsible for marketing the country’s oil and running most of the Kingdom’s
refineries. In a second merger ordered by Royal Decree on 1st July
1993, the subject took control of the net assets of the General Organisation of
Petroleum & Minerals (Petromin)
History : 1933 Saudi Arabia grants oil concession to
California Arabian
Standard Oil Company (Casoc), affiliate of
Standard Oil of California (Socal, today's Chevron). Oil prospecting begins on
Kingdom's east coast.
1936 Texas
Company (now Texaco) acquires 50 percent interest in Socal's concession.
1938 Kingdom's
first commercial oil field discovered at Dhahran. Crude is exported by barge to
Bahrain.
1939 First tanker load of petroleum is exported.
Casoc changes its name to Arabian American
Oil Company (Aramco).
1945 Ras Tanura Refinery begins operations.
1948 Standard
Oil of New Jersey and Socony-Vacuum Oil (both now Exxon Mobil) join Socal and
Texaco as owners of Aramco.
1950 1,700km
Trans-Arabian Pipe Line (Tapline) is completed, linking Eastern Province oil
fields to Lebanon and the Mediterranean.
1951 Safaniya
field, the world's largest offshore oil field is discovered.
1956 Aramco
confirms scale of Ghawar and Safaniya, world's largest oil field and largest
offshore field, respectively.
1961 Liquefied
petroleum gas (LPG) - propane and butane - is first processed at Ras Tanura and
shipped to customers.
1966 Tankers
begin calling at "Sea Island," new offshore crude oil loading
platform off Ras Tanura.
1973 Saudi
Arabia's Government acquires a 25 percent participation interest in Aramco.
1975 Master Gas System project is launched.
1980 Saudi
Government acquires 100 percent participation interest in Aramco, purchasing
almost all of the company's assets.
1981 East-West
Pipelines, built for Aramco's natural gas liquids (NGL)and crude oil, link the
Eastern Province with Yanbu' on Red Sea.
1982 Exploration
and Petroleum Engineering Center (EXPEC) opens in Dhahran.
1984 Company acquires its first four supertankers.
1987 East-West
Crude Oil Pipeline expansion is completed, boosting capacity to 3.2 million
barrels per day (bpd).
1988 Saudi
Arabian Oil Company, or Saudi Aramco, is established.
1989 High-quality
oil and gas are discovered south of Riyadh, the first find outside the
company's original operating area. Saudi Aramco and Texaco launch the Star
Enterprise refining and marketing joint venture.
1991 Company plays major role combating the Gulf oil
spill.
1992 East-West
Crude Oil Pipeline capacity boosted to 5 million bpd. Saudi Aramco affiliate
purchases 35 percent interest in SsangYong Oil Refining Company (now S-Oil
Corporation) of the Republic of Korea.
1993 Saudi
Aramco takes charge of Kingdom's domestic refining, marketing, distribution and
joint-venture refining interests.
1994 Maximum
sustained crude-oil production capacity is returned to 10 million bpd. Company
acquires a 40 percent equity interest in Petron, largest refiner in the
Philippines.
1995 Company
completes program to build 15 very large crude carriers. Saudi Aramco President
and CEO Ali I. Al-Naimi is named Kingdom's Minister of Petroleum and Mineral
Resources.
1996 Saudi
Aramco acquires 50 percent of Motor Oil (Hellas) Corinth Refineries and
Avinoil. Company also assumes controlling interest in two Jeddah-based
lubricants companies, now known as Saudi Aramco Lubricating Oil Refining
Company (Luberef) and Saudi Arabian Lubricating Oil Company (Petrolube).
1998 Saudi
Aramco, Texaco and Shell establish Motiva Enterprises LLC, a major refining and
marketing joint venture in the southern and eastern United States.
1999 HRH
Crown Prince 'Abd Allah inaugurates the Shaybah field in the Rub' al-Khali
desert, one of the largest projects of its kind in the world goes on stream.
The Dhahran-Riyadh-Qasim multi-product
pipeline and the Ras Tanura Upgrade project are completed.
The second Saudi Aramco-Mobil lubricating
oil refinery (Luberef II) in Yanbu' commences operations.
2000 Petroleum Intelligence Weekly ranks the
company No.1 in the world for the 11th straight year, based on the Kingdom's
crude oil reserves and production.
Aramco Gulf Operations Limited is
established to assume management of the government's petroleum interest in the
Offshore Neutral Zone between Saudi Arabia and Kuwait.
New facilities are under construction in the
Haradh and Hawiyah gas plant projects to process gas for delivery to the Master
Gas System and on to domestic markets.
2001 Hawiyah
Gas Plant, capable of processing up to 1.6 billion standard cubic feet per day
of non-associated gas, comes on stream.
2003 Haradh
Gas Plant completed two and a half months ahead of schedule.
2004 HRH
Crown Prince 'Abd Allah ibn 'Abd Al-'Aziz Al Saud, First Deputy Prime Minister
and Head of the National Guard, inaugurates the 800,000 barrel-per-day
Qatif-Abu Sa'fah Producing Plants mega project. In addition to the crude, the
plants provide 370 million standard cubic feet of associated gas daily.
Saudi Aramco and Sumitomo Chemical Co., Ltd.
sign a joint venture agreement for the development of a large, integrated
refining and petrochemical complex in the Red Sea town of Rabigh, on Saudi
Arabia's west coast.
Saudi Aramco
and Sumitomo Chemical broke ground on PETRORabigh, an
integratedrefining/petrochemical project. Haradh III was completed, yielding
300,000 bpd of oil.Accords were signed for two export refineries -- Jubail
(with Total) and in Yanbu' (with ConocoPhillips).
Saudi Aramco
begins a program to build a world-class graduate research university, the King
Abdullah University of Science and Technology (KAUST).
Saudi Aramco
celebrates its 75th Anniversary and, as a gift to the people of Saudi Arabia,
launches a project to build the King Abdulaziz Center for Knowledge and Culture
(popularly known as Ithra) in Dhahran.
Saudi Aramco
achieves maximum sustained crude-oil production capacity of 12 million bpd.
Aramco Overseas Co BV
Schuttersveld 14
Leiden
Netherlands
Aramco Services Co
PO Box: 4535
Houston
Texas 77210
United States of America
Tel: (1-713) 4324000
Aramco Associated Co
16875 J.F.K. Boulevard
Houston
Texas
United States of America
Saudi Refining Inc
W. Loop Street
Houston
Texas
United States of America
Saudi Petroleum International Inc
Houston
Texas 77210
United States of America
Tel: (1-713) 4324000
Saudi Petroleum Overseas Ltd
United Kingdom
Vela International Marine Ltd
Liberia
Petron Corp
Philippines
Activities: Saudi Aramco is involved in
all phases of oil and gas production, refining, transportation and marketing.
Subject’s key facts and figures are as follows:
Oil reserves and production
Recoverable crude oil and condensate
reserves: 259.7 billion barrels
Total annual crude oil
production: 2.9 billion barrels
Average daily crude oil
production: 9.1 million barrels
Gas reserves and production
Gas reserves at year’s end:
282.6 trillion standard cubic feet
Total annual gas
production: 3.4 trillion standard cubic feet
Average daily gas
production: 9.4 billion standard cubic feet
Natural gas liquids (NGLs)
Total annual NGL
production: 410.2 million barrels
Average daily NGL
production: 1.1 million barrels
New discoveries
Oil fields: Namlan, AsSayd, Qamran, Arsan
Gas fields: Jalamid
Wells completed
New oil wells: 27
New gas wells: 17
Total workovers: 74
Subject operates 87 oil and gas fields and
is the discoverer and producer of world's largest oil field: Ghawar Field,
Eastern Province, Saudi Arabia - 65 billion barrels of reserves, as well as the
discoverer and producer of world's largest offshore oil field: Safaniya Field,
Arabian Gulf - 37 billion barrels of reserves.
Oil Operations
Saudi Aramco's oil operations encompass the
Kingdom of Saudi Arabia, including territorial waters in the Arabian Gulf and
the Red Sea. Totalling more than 1.5 million square kilometres. Most production
comes from fields in the coastal plains of the Eastern Province in an area extending
300 kilometres north and south of Dhahran.
Saudi Aramco
implemented a PC-Cluster supercomputer system to run inparallel with its
computer intensive earth-imaging application Pre-Stack Time Migration (PSTM), which
was developed by Saudi Aramco. This advanced seismic processing technology
provides better images of deep hydrocarbon targets and improves the success
rate of drilling activity in support of the gas production program. The
PC-Cluster architecture provides unprecedented cost benefits because it uses
off-the-shelf computer components linked together with off-the-shelf high-speed
interconnect switches.
Gas Operations
The Hawiyah Gas Plant, which became fully
operational at the end of 2001, provides an additional 1.4 billion cubic feet
per day of sales gas.
To meet growing domestic demand, the Kingdom
has embarked on a major expansion of its gas industry and the downstream
consuming sectors of the economy, particularly petrochemical production and
exports and electricity and water desalination facilities. Subsequent to the
Long Term Kingdom Gas Strategy developed by the Ministry of Petroleum and
Minerals and Saudi Aramco in 1998, the government invited interested
international oil companies (IOCs) to participate in the development of new gas
fields, gas production and downstream utilization projects. Gas is targeted to
be "an engine of growth" for the Saudi economy. The so-called Natural
Gas Initiative has made substantial progress and has an ambitious schedule
ahead to implement some $25 billion worth of projects over the next five to ten
years. Progress is being made on three Core Ventures :
Core Venture 1 includes ethane and NGL
recovery from the Haradh and Hawiyah Gas Plants, additional new gas development
and production, two petrochemical complexes to utilize ethane and NGL and two
large power/water generation facilities on the east coast of Saudi Arabia. The
IOC consortium selected to develop CV1 includes ExxonMobil, Royal Dutch/Shell,
BP and Philips.
Core Venture 2 focuses on gas development in
the Red Sea and along the west coast. It includes exploration, development,
production and downstream facilities, i.e., petrochemical and power/water
plants. ExxonMobil, Occidental and Marathon are in a consortium to develop CV2.
Core Venture 3 comprises gas exploration and
production in the Shaybah/Kidan area in the south-eastern part of the Kingdom.
It will include downstream facilities, as well. A consortium of Shell, Total,
Fina, Elf and Conoco is working to develop CV3.
During 2004 subject commenced work the
Hawiyah Gas Plant expansion and NGL Recovery programme, composed of a series of
expansion projects at existing gas plants and an upgrade of the existing
pipeline network for the delivery of new NGL liquids. Central to the Hawiyah
NGL programme is the construction of a new grass roots NGL recovery facility
near Hawiyah Gas Plant. The project will increase NGL production by 310,000
bpd.
Refining, Supply & Distribution
Saudi Aramco's responsibilities expanded
greatly on July 1st 1993, when a Royal Decree merged into the
company all of Saudi Arabia's state-owned oil refineries and distribution and
marketing operations that were operated by the Petromin marketing and refining
project known as Samarec. Under the same decree, Saudi Aramco assumed
Petromin's 50-percent interests in three domestic joint-venture refineries.
Saudi Aramco's new refining interests, combined with its Ras Tanura Refinery
and its joint-venture and shareholder interests in five other refineries in the
United States and the Far East, place the company in the top rank of world
refiners.
Subject owns and operates the world's second
largest tanker fleet and has a total refining capacity of 3.4 million barrels
per day
Saudi Aramco Refining
World-class domestic refineries stretching
from the Arabian Gulf to the Red Sea maintain a reliable supply of more than a
million barrels per day of products to meet the needs of domestic and
international markets.
Supply and Distribution
A broad network of bulk plants and
air-fueling units in the Kingdom supplies thousands of bulk customers with
products ranging from gasoline and jet fuel to fuel oil and liquefied petroleum
gas.
Terminals
Mammoth tank farms and shipping terminals supply crude oil, natural gas liquids
and refined products to customers around the globe. Every year, more than 4,000
tankers call at Ras Tanura and Ju'aymah on the Arabian Gulf, and at Yanbu',
Jeddah and Rabigh on the Red Sea.
Operations Coordination Center
OCC is the hub of oil, gas, electricity and
refined products management, optimising hydrocarbon system capacities and
inventories to deliver quality products to the customer at the right time and
place.
Electric Power Network
An extensive electrical power generation,
transmission and distribution network supports Saudi Aramco's industrial
operations in the Kingdom and sustains their continual growth.
Recent Discoveries
In 2005, Saudi Aramco booked three oil
discoveries and two gas discoveries.
In June, gas was discovered at Fazran, about
59 miles/95 km west of Dhahran, and in December, gas was discovered at
Midrikah, about 217 miles/350 km west of Dhahran. Of the oil discoveries, the
Du'ayban discovery, made in April, flowed 3,260 bpd of Arabian Super Light
crude oil, while the Halfa discovery, also in April, flowed 6,000 bpd of
Arabian Extra Light crude oil. In November, oil was struck at Muraiqib, with
the discovery well flowing 1,079 bpd of Arabian Light.
In addition, an oil discovery was made
outside the booked reserves area at Fadhili, northeast of Riyadh. This
discovery established a significant extension of the Fadhili reservoir in the
field of the same name, and could result in the additional booking of
approximately 700 million barrels of original oil in place, of which 45
percent, or 300 million barrels, is recoverable.
The King Abdulaziz Center for World Culture
The King
Abdulaziz Center for World Culture is a monumental
undertaking by Saudi Aramco, the world’s leading oil company, to inspire,
nurture and promote creativity, learning and cross-cultural engagement
throughout
The Cultural Center is designed to be a beacon
of social development and cultural progress. It will give visitors the
opportunity to experience and enjoy the culture of Saudi Arabia, and help them
to understand how the Kingdom’s past links to the present and can propel Saudis
to a creative and prosperous future.
Constructed on the site of Saudi Arabia’s very first oil well, the
Cultural Center commemorates the Kingdom’s discovery of oil while pointing to a
future fueled by ideas, creativity and innovation. Construction is scheduled
for completion in early 2015.
The Virtual Cultural Center
The Cultural Center is currently active in the preliminary stages of a
“Pre-launch Phase.” The so- called “Virtual Cultural Center” – as opposed
to the physical Center – will be open to the public online and off-line through
a variety of large, medium and small-sized events and workshops from 2013-2015.
Highlights:
Keystone
Program 2013 – Registration Open until March 27th
The International Source Art Competition – March 11-13, 2013
iDiscover Final Ceremony (Jeddah) – March 21, 2013
World Book Day – April 23, 2013
Subject has a workforce of 56,066 employees (of which 48,647 are Saudi
nationals)
Subject is owned by the government of Saudi Arabia and as such no
financial information is released.
National Commercial Bank
PO Box: 13
Dammam 31411
Tel: (966-3) 8331188
Fax: (966-3) 8336058
Saudi American Bank
PO Box: 3113
Dammam 31471
Tel: (966-3) 8337171
Saudi British Bank
PO Box: 1618
Dammam 31411
Tel: (966-3) 8331553
No complaints regarding subject’s payments have been reported.
Date of transaction September
2005 October 2006 December 2012
Credit amount 118,700 1,705,050 250,000
Amount overdue 0 0 0
Payment terms 180
days 180 days 180 days
Payment Method Letters
of Credit Letters of Credit Letters of Credit
Paying record No
Complaints No Complaints No Complaints
Currency Canadian
Dollars Canadian Dollars Euros
Saudi Arabian Oil Company is the largest oil producer in the world
supplying 11% of the world’s oil demand. The company controls proven oil
reserves of about 260.1 billion barrels (more than 25% of the world’s total).
Saudi Aramco owns a fleet of oil tankers and invests in refineries and
distribution networks in other countries.
During the course of this investigation nothing detrimental was
uncovered regarding subject’s operating history or the manner in which payments
are fulfilled. As such the company is considered to be a fair trade risk.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.71 |
|
|
1 |
Rs.102.04 |
|
Euro |
1 |
Rs.83.77 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.