MIRA
INFORM REPORT
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Name :
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THE GRIFFIN COAL MINING COMPANY PTY LIMITED
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Formerly Known As :
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THE GRIFFIN COAL MINING COMPANY LIMITED
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Registered Office :
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Level 1, 677
Murray Street West Perth Western Australia 6005
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Country :
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Australia
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Financials (as on) :
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31.03.2013
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Date of Incorporation :
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16.01.1925
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Com. Reg. No.:
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008667285
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Legal Form :
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Australian Proprietary Company, Limited by Shares
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Line of Business :
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Subject’s business consist of exploration, mining,
processing and marketing of coal.
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No. of Employees
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500
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RATING
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STATUS
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PROPOSED CREDIT LINE
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26-40
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B
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Capability to overcome financial difficulties seems comparatively
below average.
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Small
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Status :
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Moderate
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Payment Behaviour :
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No complaints
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Litigation :
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Clear
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NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 1, 2014
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Country Name
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Previous Rating
(31.03.2014)
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Current Rating
(01.06.2014)
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Australia
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A1
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A1
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Risk Category
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ECGC
Classification
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Insignificant
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A1
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Low
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A2
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Moderate
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B1
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High
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B2
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Very High
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C1
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Restricted
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C2
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Off-credit
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D
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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
Company name and address
THE GRIFFIN COAL MINING COMPANY PTY LIMITED
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Verified Address
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Subject name
THE GRIFFIN COAL MINING COMPANY PTY LIMITED
Business address
Level 15, 28 The Esplanade
Town
Perth
Province
Western Australia
Zip / Postal code
6000
Country
Australia
Telephone
+61 8 61882200
Fax
+61 8 61882201
Email
info@griffincoal.com.au/r.scott@griffincoal.com.au
Website
www.griffincoal.com.au
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Registered address
Level 1, 677 Murray Street
Town
West Perth
Province
Western Australia
Zip / Postal code
6005
Country
Australia
Postal address
GPO Box G474
Town
Perth
Province
Western Australia
Zip / Postal code
6841
Country
Australia
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SUMMARY DETAILS
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Report Summary
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Date registered
16/01/1925
Legal form
Australian Proprietary Company, Limited by Shares
Key personnel
Suresh Kumar Medikonda
Line of business
The Subject’s business consist of exploration, mining, processing and
marketing of coal.
Staff employed
500 employees (Subject)
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Paid-up capital
AUD 5,695,343.00
Sales turnover / Revenue / Income
INR 9,564,157,000.00 (Non-Consolidated 12 months, 31/03/2013)
Net income / loss
INR -3,206,135,000.00 (Non-Consolidated 12 months, 31/03/2013)
Total assets
INR 84,504,100,000.00 (Non-Consolidated 12 months, 31/03/2013)
Share equity
INR 36,593,363,000.00 (Non-Consolidated 12 months, 31/03/2013)
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Subject’s Credit Risk Analysis
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Country risk
Country risk is minimal
Operation trend
Operational trend is declining
Management experience
Management is adequately experienced
Financial performance
Financial performance is gradually declining
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Organisation structure
Organisational structure is stable
Detrimental
No detrimental records found
Payment history
No payment delays noted
Credit amount requested
Not described.
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STATUTORY DETAILS
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Registry Information
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Date registered
16/01/1925
Legal form
Australian Proprietary Company, Limited by Shares
Registration number
Australian Company Number: 008667285
Registered authority
Australian Securities and Investments Commission
Tax / VAT number
Australian Business Number: 16008667285
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Statutory status
Active
Previous name
THE GRIFFIN COAL MINING COMPANY LIMITED (initial)
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BOARD OF MANAGEMENT
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Key Personnel
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Name
Suresh Kumar Medikonda
Designation
Managing Director
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BOARD OF DIRECTORS
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Appointments
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Name
Satish Mullapudi
Title
Director
Appointment date
09/05/11
Address
64 Worcester Crescent
Bundoora, VIC 3083
Australia
Biography
Born on 15-03-1981 in India.
Name
Suresh Kumar Medikonda
Title
Director
Appointment date
07/01/14
Address
G501 Bestech Park View City 2
Sector 49 Sohna-Gurgaon Road
Haryana 122018
India
Biography
Born on 02-11-1976 in Nellore, India.
Name
James Riordan
Title
Company Secretary
Appointment date
28/02/11
Address
10 Cornell Place
East Cannington, WA 6107
Australia
Biography
Born on 21-05-1979 in Cork, Ireland.
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Staff employed
500 employees (Subject)
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Other Appointments
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Auditor
ERNST & YOUNG
11 Mounts Bay Road
Perth, WA 6000
Australia
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SHARE CAPITAL
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Composition
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Authorized capital
AUD5,695,343.00
Number / Type of shares
11,390,685 Ordinary Shares
Share par value
No Par Value
Issued capital
AUD5,695,343.00
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Paid-up capital
AUD5,695,343.00
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OWNERSHIP / SHAREHOLDERS
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Composition
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Shareholder name
LANCO RESOURCES AUSTRALIA PTY LTD
Address
C/o ALLEN & OVERY,
Exchange Plaza
Level 27, 2 The Esplanade
Perth, WA 6000
Australia
Number / Type of shares
11,390,685 Ordinary Shares
Percentage (%) of shares
100%
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CORPORATE AFFILIATIONS AND
RELATED COMPANIES
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Structure
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Company name
LANCO INFRATECH LIMITED
Affiliation type
Ultimate Holding Company
Country of business
India
Comments
Lanco Infratech Limited engages in engineering, procurement and construction
(EPC), power, solar energy, natural resources, infrastructure, and property
development businesses in India, Australia, Singapore, and internationally.
The company provides EPC services for thermal power projects, hydro power
projects, chimneys, cooling towers and balance of plant, and transmission and
distribution projects, as well as for roads, highways and bridges, metros and
railways, buildings and airports, sea ports and marine structures, and water
and pipelines. It is also involved in the development of solar power
projects. In addition, the company generates and trades power from thermal,
hydro, wind, and solar sources; develops integrated properties comprising
commercial and residential buildings; and explores, mines, and markets coal.
Lanco Infratech Limited was founded in 1960 and is based in Gurgaon, India.
Company name
LANCO RESOURCES AUSTRALIA PTY LTD
Affiliation type
Parent Company
Country of business
Australia
Company name
LANCO ANPARA POWER LIMITED
Affiliation type
Sister Company
Country of business
India
Company name
LANCO RESOURCES INTERNATIONAL PTE. LTD.
Affiliation type
Sister Company
Country of business
Singapore
Company name
P.T. LANCO INDONESIA ENERGY
Affiliation type
Sister Company
Country of business
Indonesia
Company name
LANCO KONDAPALLI POWER LIMITED
Affiliation type
Sister Company
Country of business
India
Company name
LANCO SOLAR ENERGY PRIVATE LIMITED
Affiliation type
Sister Company
Country of business
India
Company name
WESTERN AUSTRALIA COAL TERMINAL PTY LTD
Affiliation type
Sister Company
Country of business
Australia
Company name
CARPENTER MINE MANAGEMENT PTY LIMITED
Affiliation type
Sister Company
Country of business
Australia
Company name
UDUPI POWER CORPORATION LIMITED
Affiliation type
Sister Company
Country of business
India
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Remarks on corporate affiliations and related companies
Other companies of the Lanco Infratech Group should be considered affiliates
of the Subject.
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BANK AND MORTGAGES
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Bank Details
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Name of bank
National Australia Bank
Address
Australia
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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.
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Legal Filings
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Bankruptcy filings
None reported.
Court judgements
None reported.
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Tax liens
None reported.
Others
Petitioner Court Action:
Petitioner: PERDAMAN CHEMICALS AND FERTILISERS PTY
LTD
Address:
Level 17, 54-58 Mounts Bay Road
Perth, WA 6000
Australia
Start date: 23-11-2012
Court no: Supreme WA COR190 of 2012
The case id settled with the Subject agreeing to pay Perdaman a nominal
amount
of AUD 7.5 million and legal costs to be taxed by the Court, without
admission of
any of the allegations of Perdaman.
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FINANCIAL STATISTICS
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Description
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Financial statement source
Public Record Sources
Financial statement date
31/03/14
Style of financial statement
Full audited
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Currency of financial statement
India, Rupee (INR)
Exchange rate
1 USD = INR 60.81 as of 14-08-2014
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Concise Financial Data
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Consolidation style
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Non
Consolidated
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Non Consolidated
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Group
Consolidated
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Currency
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India,
Rupee (INR)
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India,
Rupee (INR)
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India,
Rupee (INR)
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Date of financial year end
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31/03/13
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31/03/12
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31/03/14
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Length of financial accounts
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12
months
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12
months
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12
months
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Sales turnover / Revenue / Income
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9,564,157,000.00
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7,166,284,000.00
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107,074,500,000.00
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Profit / Loss before tax
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-4,479,667,000.00
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-3,077,146,000.00
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-24,564,700,000.00
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Net income / loss
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-3,206,135,000.00
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-3,077,146,000.00
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-22,738,800,000.00
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Non-current assets
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402,530,300,000.00
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Property, plant and equipment
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357,893,100,000.00
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Current assets
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105,911,400,000.00
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Inventories
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31,213,400,000.00
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Cash and cash equivalents
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5,793,400,000.00
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Accounts receivable
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39,593,600,000.00
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Total assets
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84,504,100,000.00
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75,815,452,000.00
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508,441,700,000.00
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Current liabilities
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141,949,300,000.00
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Non-current liabilities
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343,542,200,000.00
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Accounts payable
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41,115,500,000.00
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Total liabilities
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47,910,737,000.00
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38,855,150,000.00
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485,491,500,000.00
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Share equity
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36,593,363,000.00
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36,960,302,000.00
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22,950,200,000.00
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Reserves
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36,266,999,000.00
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36,657,220,000.00
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12,183,000,000.00
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Remarks
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The non-consolidated financial
information above relates to the Subject only. (obtained from Lanco Infratech
Limited's 2013 annual report)
The group’s consolidated financial information above relates to the Subject’s
Ultimate Holding Company Lanco Infratech Limited and all its subsidiaries
which includes the Subject.
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BUSINESS DETAILS
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Operational Details
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Main activities
The Subject engages in exploration, mining, processing and marketing of coal.
The Subject offers coal to electricity generating and steam train companies,
producer of fire cement and lime kilns.
The Subject operates 2 coal mines: Ewington 1 & 2 Mines and Muja South
Mine in the Collie area, approximately 220 kilometres south east of Perth,
the capital city of Western Australia.
Ewington 1 & 2 Mines: The Ewington mine lies within the Premier Coal
Measures, 10 kilometres east of Collie and is gradually advancing down dip to
the east.
There are three main seams (1.5 metres to three metres thick) and four
associated seam splits of one metre or less being mined within a 25 metre
vertical section. These seams are generally smaller than Muja but production
levels are similar. Deepening of the mine is underway to develop a further
three seams.
Muja South Mine: Located at the south and east of Muja Mine. Muja Mine is 18
kilometres south east of Collie region)
Muja South is a new mine site immediately south and east of the existing Muja
Mine, intended to form the next phase in the orderly development of Griffin
Coal's Collie coal deposits.
The Subject is ultimately owned by Lanco Infratech Limited.
Lanco Infratech Limited engages in engineering, procurement and construction
(EPC), power, solar energy, natural resources, infrastructure, and property
development businesses in India, Australia, Singapore, and internationally.
The company provides EPC services for thermal power projects, hydro power
projects, chimneys, cooling towers and balance of plant, and transmission and
distribution projects, as well as for roads, highways and bridges, metros and
railways, buildings and airports, sea ports and marine structures, and water
and pipelines. It is also involved in the development of solar power
projects. In addition, the company generates and trades power from thermal,
hydro, wind, and solar sources; develops integrated properties comprising
commercial and residential buildings; and explores, mines, and markets coal.
Lanco Infratech Limited was founded in 1960 and is based in Gurgaon, India.
Note: Lanco Infratech Limited bought the Subject for $665 million in 2011.
Products and services
Raw and processed coal
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Purchases
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Local
None reported.
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International
The Subject sources its product(s) / material(s) from countries such as South
Africa and United States of America.
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Sales
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Local
The Subject sells its product(s) locally.
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International
The Subject exports its product(s) to countries in Asia.
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Key events
14 August, 2014
Adani Power buys Lanco’s plant for Rs 6000 cr: Details on India’s largest
thermal deal
Shares of Lanco Infratech jumped nearly 5 percent after it sold its 1,200
megawatt Udupi Termal plant in a deal worth Rs 6,000 crore to Adani Power.
At 9:20 am, Lanco Infratech was up 4.92 percent at Rs8.95 while Adani Power
was up 2.50 percent at Rs 53.40. The Sensex, meanwhile, was up 81 points at
26001.19 while Nifty was up 20 points at 7759.
Lanco had put the asset on the block more than two years ago as part of its
move to cut the huge debt pile on its books.
The deal comes less than three weeks after Reliance Power pipped Adani Power
to acquire three hydel projects of Jaypee Group.
As this Economic Times report, the sellers in both the deals— Lanco and
Jaypee— were driven by the need to pare debt that had ballooned in recent
years when the power sector was in deep trouble.
For Lanco's Udupi plant, Adani will pay Rs 2,000 crore in cash and take over
the plant's long-term debt of Rs 4,000 crore. The deal would bring down
Lanco's debt by Rs 4,000 crore.
According to a Business Standard report, this is the largest acquisition in
the thermal power space and also the Adani group’s second big takeover since
it became clear a Narendra Modi-led government was coming to power at the
Centre.
In May, Adani Ports & SEZ bought Dhamra Port from L&T and Tata Steel
for Rs 5,522.38 crore. And in April this year, the Adani group announced it
had become the largest private power producer in India, with an overall
installed capacity of 8,620 Mw and is looking at the acquisition as one of
the options to ramp up capacity to 20,000 MW by 2020.
Lanco has a total debt of Rs 36,000 crore and is reportedly also looking at
options to sell its Griffin Coal in Australia which it had bought for $665
million in 2011.
"With this deal, Lanco's debt could come off by about 10 percent and to
that extent that should be seen positively by the lenders," said
Harshvardhan Dole, Vice President Institutional Equities, IIFL.
According to Lanco Infratech, the Udupi plant is the "first independent
power project in the country based on 100% import coal with a captive jetty
of four million tons per annum and an external coal handling system in the
new Mangalore Port Trust."
Source: www.firstbiz.firstpost.com
30 July, 2014
Griffin Coal spat resolved
An acrimonious spat that forced the closure of Griffin Coal for 10 days has
been resolved after the mine's Indian owner agreed to pay the contractor that
runs it millions in unpaid debts.
Heading off what loomed as an energy crisis for some of WA's biggest energy
consumers, Carna Civil and Mining and Lanco Infratech have settled their
differences.
Carna, the Waroona-based business that was brought in by Lanco to run Griffin
earlier this year, suspended operations on July 17 claiming it was owed up to
$30 million in overdue invoices.
The suspension threw coal supplies to consumers including one of WA's biggest
power plants into chaos.
Late last week the Japanese owners of the Bluewaters power station initiated
unprecedented moves that could have led to them exercising their so-called
step-in rights, designed to ensure Bluewaters' continuity of coal supply.
However, a deal was struck over the weekend under which mining resumed on
Sunday morning.
Neither Lanco or Carna were willing to comment yesterday but it is understood
the truce was called after Lanco accepted it owed Carna money and would pay
in instalments.
A key condition of the deal appeared to stipulate that the first instalment
would be paid yesterday, a condition Lanco is believed to have met.
It is not known how much Lanco will be paying Carna.
Lanco initially baulked at Carna's demands, claiming it had overpaid the
contractor between $3 million and $4 million.
Bluewaters had been forced to eat into its own coal reserves to maintain
electricity production.
The peace deal will also be a fillip for other industrial consumers including
Boddington Gold Mine, a major offtake customer of Bluewaters, as well as
State-owned energy provider Synergy, the Water Corporation, BHP's Worsley
Alumina and Cockburn Cement.
Griffin, which has taken on about 50 extra staff through Carna in recent
weeks, is hoping to increase production with fresh coal deposits by October
in a bid to lift its performance.
Source: www.yahoo.com
18 July, 2014
Griffin coal halts due to unpaid bills
Unpaid contracts have resulted in the suspension of 260 workers at Western
Australia’s Griffin coal mine.
Mine owner Lanco Infratech was accused by contractor Carna Civil and Mining
of not paying for the month of May, a bill which was due on July 1.
Works stopped at 3pm yesterday, according to CFMEU district secretary Gary
Wood.
“It's a shame that the workforce are caught up in something that is beyond
their control,” Wood said.
Wood expected the dispute to be resolved within 48 hours.
Source: www.miningaustralia.com.au
January 10, 2014
Lanco Infratech Ltd. (BSE:532778) is reportedly planning to sell Griffin Coal
Mining Company Pty Ltd. to pay off debt, sources in the know of the
development said. Lanco Infratech is close to signing a corporate debt
restructuring (CDR) agreement for INR 75 billion which brings INR 35 billion
to Lanco. Agreement is approved by bankers and promoters will infuse INR 30
billion in 3 years. A spokesperson from Lanco said, “We don't comment on
market rumors.” Bloomberg reported on January 9, 2014, that Lanco is
examining options including a full sale of Griffin Coal.
Source: www.investing.businessweek.com
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Business Facilities and Assets
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Premises
The Subject operates from the verified heading address consisting of an
administrative office.
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Branches
In addition, the Subject operates 2 coal mines, Ewington 1 & 2 Mines and
Muja South Mine in the Collie area, approximately 220 kilometres south east
of Perth, the capital city of Western Australia.
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SUMMARIZED COUNTRY RISK
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Gross Domestic Products (GDP) and Economic Overview
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Central bank
Reserve Bank of Australia
Reserve of foreign exchange and gold
US$ 46.714 billion
Gross domestic product (GDP)
US$ 1.586 trillion
Purchasing power parity (GPP)
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%
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Public debt (general Government gross debt as percentage (%) of
GDP)
2010: 20.4%
2011: 22.9%
2012: 24%
Government bond ratings
Standard & Poors: AAA
Moodys rating: Aaa
Moodys outlook: STA
Market value of publicly traded shares
US$1.198 trillion
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Trade and Competitiveness Overview
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Total exports
US$263.9 billion
Export commodities
Coal, iron ore, gold, meat, wool, alumina, wheat, machinery and transport
equipment
Total imports
US$239.7 billion
Import commodities
Machinery and transport equipment, computers and office machines, telecommunication
equipment and parts; crude oil and petroleum products
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)
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Major export partners
China 27.4%, Japan 19.2%, South Korea 8.9%, India 5.8%
Major import 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
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Country and Population Overview
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Total population
22.68 million
Total area
7,692,024 km2
Capital
Canberra
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Currency
Australian dollars (AUD)
Internet users as percentage (%) of total population
79%
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PAYMENT OUTLOOK
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Purchases Term
|
|
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International
L/C, Telegraphic transfer, D/P, D/A, Credit 30-120 days
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Sales Term
|
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Local
Bank transfer, D/P, D/A, Credit 30-120 days
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International
L/C, Telegraphic transfer, D/P, D/A, Credit 30-120 days
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Trade Reference / Payment Behaviour
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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.
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Investigation Note
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Sources
Interviews and material provided by the Subject
Other official and local business sources
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KEY FINANCIAL RATIOS
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For
financial year end
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31/03/13
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31/03/12
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.
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Profitability
|
.
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.
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.
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Pre-tax profit (loss) margin (%)
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-46.84
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-42.94
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Net profit (loss) margin (%)
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-33.52
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-42.94
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Return
on Invested Capital
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.
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.
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.
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Return on assets (%)
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-3.79
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-4.06
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Return on equity (%)
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-8.76
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-8.33
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Capital
Structure and Solvency
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.
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.
|
.
|
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Total debt to asset ratio (%)
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56.70
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51.25
|
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Total debt to equity ratio (%)
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130.93
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105.13
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Currency
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Unit
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Indian Rupees
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US Dollar
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1
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Rs.61.06
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UK Pound
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1
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Rs.101.84
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Euro
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1
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Rs.81.56
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Analysis Done by
:
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DIV
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Report Prepared
by :
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NIS
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RATING
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STATUS
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PROPOSED CREDIT LINE
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>86
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Aaa
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Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums
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Unlimited
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71-85
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Aa
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Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums
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Large
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56-70
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A
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Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums
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Fairly Large
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41-55
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Ba
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Overall operation is considered normal. Capable to meet normal
commitments.
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Satisfactory
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26-40
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B
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Capability to
overcome financial difficulties seems comparatively below average.
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Small
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11-25
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Ca
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Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity
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Limited with
full security
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<10
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C
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Absolute credit risk exists. Caution needed to be exercised
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Credit not
recommended
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--
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NB
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New Business
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--
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.
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