MIRA
INFORM REPORT
|
Report Date : |
23.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
Citic Heavy
Industries co., ltd. |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
26.01.2008 |
|
|
|
|
Com. Reg. No.: |
410300110053941 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in designing, manufacturing and selling heavy sets
of mechanical equipment and parts, castings and forgings; contracting
overseas projects which related to export self-made facilities and domestic
international bidding projects; contracting surveying, consulting, design and
supervision of overseas mechanical engineering; exporting equipment,
materials which needed by the above overseas projects; importing and
exporting goods and technology; dispatching labor abroad which required by
the above overseas projects. |
|
|
|
|
No of Employees : |
8,687 [Including Subsidiaries] |
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 : |
Satisfactory |
|
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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
CHINA - ECONOMIC OVERVIEW
Since the late 1970s China
has moved from a closed, centrally planned system to a more market-oriented one
that plays a major global role - in 2010 China became the world's largest
exporter. Reforms began with the phasing out of collectivized agriculture, and
expanded to include the gradual liberalization of prices, fiscal
decentralization, increased autonomy for state enterprises, growth of the
private sector, development of stock markets and a modern banking system, and
opening to foreign trade and investment. China has implemented reforms in a
gradualist fashion. In recent years, China has renewed its support for
state-owned enterprises in sectors considered important to "economic
security," explicitly looking to foster globally competitive industries.
After keeping its currency tightly linked to the US dollar for years, in July
2005 China moved to an exchange rate system that references a basket of
currencies. From mid 2005 to late 2008 cumulative appreciation of the renminbi against
the US dollar was more than 20%, but the exchange rate remained virtually
pegged to the dollar from the onset of the global financial crisis until June
2010, when Beijing allowed resumption of a gradual appreciation and expanded
the daily trading band within which the RMB is permitted to fluctuate. The
restructuring of the economy and resulting efficiency gains have contributed to
a more than tenfold increase in GDP since 1978. Measured on a purchasing power
parity (PPP) basis that adjusts for price differences, China in 2013 stood as
the second-largest economy in the world after the US, having surpassed Japan in
2001. The dollar values of China's agricultural and industrial output each
exceed those of the US; China is second to the US in the value of services it
produces. Still, per capita income is below the world average. The Chinese
government faces numerous economic challenges, including: (a) reducing its high
domestic savings rate and correspondingly low domestic consumption; (b)
facilitating higher-wage job opportunities for the aspiring middle class,
including rural migrants and increasing numbers of college graduates; (c)
reducing corruption and other economic crimes; and (d) containing environmental
damage and social strife related to the economy's rapid transformation.
Economic development has progressed further in coastal provinces than in the
interior, and by 2011 more than 250 million migrant workers and their
dependents had relocated to urban areas to find work. One consequence of
population control policy is that China is now one of the most rapidly aging
countries in the world. Deterioration in the environment - notably air
pollution, soil erosion, and the steady fall of the water table, especially in
the North - is another long-term problem. China continues to lose arable land
because of erosion and economic development. The Chinese government is seeking
to add energy production capacity from sources other than coal and oil,
focusing on nuclear and alternative energy development. Several factors are
converging to slow China's growth, including debt overhang from its
credit-fueled stimulus program, industrial overcapacity, inefficient allocation
of capital by state-owned banks, and the slow recovery of China's trading
partners. The government's 12th Five-Year Plan, adopted in March 2011 and
reiterated at the Communist Party's "Third Plenum" meeting in
November 2013, emphasizes continued economic reforms and the need to increase
domestic consumption in order to make the economy less dependent in the future
on fixed investments, exports, and heavy industry. However, China has made only
marginal progress toward these rebalancing goals. The new government of
President XI Jinping has signaled a greater willingness to undertake reforms
that focus on China's long-term economic health, including giving the market a
more decisive role in allocating resources.
|
Source
: CIA |
Company name & address
Citic Heavy Industries co., ltd.
no. 206 Jianshe Road, jianxi district, Luoyang,
henan PROVINCE, 471039 PR CHINA
TEL: 86 (0) 379-64088999
FAX: 86 (0) 379-64088108
EXECUTIVE SUMMARY
INCORPORATION DATE : jan. 26, 2008
REGISTRATION NO. : 410300110053941
REGISTERED LEGAL FORM : Shares
limited company
CHIEF EXECUTIVE :
MR. ren qinxin (CHAIRMAN)
STAFF STRENGTH :
8,687 (including subsidiaries)
REGISTERED CAPITAL : CNY
2,740,000,000
BUSINESS LINE :
designing, manufacturing and selling
TURNOVER :
CNY 1,554,018,000 (Consolidated, JAN. 1 TO MAR. 31, 2014)
EQUITIES : CNY 7,997,167,000 (Consolidated, AS OF MAR. 31,
2014)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : steady
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE :
CNY 6.16 = USD 1
Adopted
abbreviations:
ANS - amount not stated NS
- not stated SC - subject company (the
company inquired by you)
NA - not available CNY -
China Yuan Renminbi
SC was registered as a shares limited company at local Administration
for Industry & Commerce (AIC - The official body of issuing and renewing
business license) on Jan. 26, 2008.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co.
raises capital by public offer, the promoters must not subscribe less than
35% of the total shares. the promoters’ shares are restricted to transfer-
within one year of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered business scope includes designing, manufacturing and
selling heavy sets of mechanical equipment and parts, castings and forgings;
contracting overseas projects which related to export self-made facilities and
domestic international bidding projects; contracting surveying, consulting,
design and supervision of overseas mechanical engineering; exporting equipment,
materials which needed by the above overseas projects; importing and exporting
goods and technology; dispatching labor abroad which required by the above
overseas projects.
SC is mainly engaged in designing, manufacturing and selling heavy sets
of mechanical equipment and parts, castings and forgings.
Mr. Ren Qinxin is chairman of SC at present.
SC is known to have approx. 8,687
(including subsidiaries) employees
at present, including 5,260 production staff, 349 sales staff, 1,633 technical
staff, 179 financial staff and 1,266 administration staff.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Luoyang.
Detailed premise information is not available at present.
http://www.citichmc.com/
The design is professional and the content is well organized. At present it is
in Chinese and English versions.
E-mail: citic_hic@citic.com
SC listed in Shanghai Stock Exchange Market with the stock code 601608.
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2011 |
Registered capital |
CNY 1,288,000,000 |
CNY 2,055,000,000 |
|
2012 |
Registered capital |
CNY 2,055,000,000 |
Present Amount |
SC's awards list:
SC has been awarded as "Backbone" status of China.
One of 50 International Management Enterprise Companies by the Chinese
Government.
One of the top 100 Machinery Manufacturers in China.
One of the top 20 Building Material Manufacturers in China.
Head of Leading Enterprises for Cement Machinery in China.
ISO 9001:2008
ISO 14001:2004
GB/T 28001-2001 (Occupational Health and Safety Management Certificate)
Also SC has been
awarded "China's Top Brand" for following products,
LK Brand Cement Roller Press
LK Cement Rotary Kiln
LK Reducer
LK Ball Mill
Above brands have been researched and fully developed by SC
independently.
Other scientific
research achievements by SC:
Completed research of more than 300 national, provincial and municipal
level key topics;
Obtained more than 270 national, provincial and municipal level
technology achievements;
Obtained more then 70 national patents
Subject passed the annual inspection of 2012 with Administration for
Industry & Commerce.
Tax Registration Certificate No.: 41030567166633X
Organization Code: 67166633X
SC’s paid-up capital is CNY 2,740,000,000.
See below for SC as executive party (defendant).
|
Executed Party |
SC |
|
Court |
Luoyang Jianxi District People's Court |
|
Date of Case |
|
|
Case Number |
(2011) 00136 |
|
Claim Amount |
RMB 1,312.21 |
|
Case Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN SHAREHOLDERS: (As of March 31, 2014)
Name %
of Shareholding
CITIC Limited 63.87
CITIC Investment Holdings Limited 4.78
Luoyang City Development Investment Group Co., Ltd. 3.12
No. 3 Transfer Account of National Council for Social Security Fund 2.42
CITIC Automobile Co., Ltd. 2.39
China Cinda Asset Management Co., Ltd. 0.73
CSR Investment Management Corporation (literal translation) 0.73
China National Gold Group Corporation 0.73
Luoyang Mining Group Co., Ltd. 0.73
Henan Investment Group Co., Ltd. 0.73
Other shareholders 19.77
CITIC Limited
=================
CITIC Limited, founded in Dec 2011, was established by CITIC Group Corporation
based on most of its operating assets with joint initiation of Beijing CITIC
Enterprise Management CO., Ltd, one of the Group’s wholly owned subsidiaries.
CITIC Limited is a large state-owned multinational conglomerate with a
balanced development of both financial and non-financial businesses. Its
financial business covers a full range of services including commercial
banking, investment banking, trust, insurance, fund management and asset
management and its non-financial business includes real estate, engineering
contracting, energy and resources, infrastructure construction, machinery
manufacturing and IT industry with clear overall strength and great momentum of
development.
Registration no.: 100000000044124
Registered capital: CNY 139,000,000,000
Legal representative: Chang Zhenming
CITIC Investment Holdings Limited
========================
Registration no.: 100000000040338
Registered capital: CNY 928,000,000
Legal representative: Sun Xiaowen孙晓文
Chairman:
Mr. Ren Qinxin (任沁新), senior
engineer, senior accountant, senior statistician, born in 1955 with Doctor’s
Degree. He is currently responsible for the overall management of SC.
Working Experience(s):
At present Working
in SC as chairman.
Also working in CITIC Heavy Machinery Co., Ltd., Luoyang Zhongzhong
Founding Co., Ltd., Luoyang Zhongzhong Transport Co., Ltd., Luoyang Zhongzhong
Power Equipment Co., Ltd. as legal representative.
General
Manager:
Mr. Yu Zhangfa (俞章法), senior
engineer, born in 1967 with Master’s degree. He is currently responsible for
the daily management of SC.
Working Experience(s):
At present Working
in SC as general manager.
Vice
General Managers:
Wang Chunmin
Zhang Zhiyong
Liu Dahua
Directors:
Pan Jinjun
Wang Juncai
Wang Mengshu
Supervisors:
Shu Yang
He Chun
Luo Lan
SC is mainly engaged in designing, manufacturing and selling heavy sets
of mechanical equipment and parts, castings and forgings.
SC’s products mainly include:
Grinding Mills
Gyratory Crushers
High Pressure Grinding Rolls (HPGR)
Mine Hoists
Shaft Drilling Machines
Crushing Stations
Coal Preparation Equipment
Horizontal Rotary Furnace (Copper Smelting)
Rotary Refining Furnace (Anode Furnace)
Rotary Kiln for Alumina
Vertical Disk Filter
Metallurgical Equipment
Rolling Equipment
SC sources its materials 95% from domestic market, and 5% from overseas
market. SC sells 87% of its products in domestic market, and 13% to overseas
market.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
Note: SC refused to release its major suppliers and clients.
SC
is known to invest in the following companies:
CITIC Heavy Machinery Co., Ltd.
Luoyang Zhongzhong Founding Co., Ltd.
Luoyang Zhongzhong Transport Co., Ltd.
Luoyang Zhongzhong Power Equipment Co., Ltd.
Luoyang Zhongzhong Automatic Engineering Co., Ltd.
Luoyang Zhongzhong Construction and Installation Engineering Co., Ltd.
CITIC Heavy Industries (Luoyang) Energy Saving Technology Engineering
Co., Ltd.
Luoyang Mining Machinery Engineering Design Institute Co., Ltd.
CITIC Censa, S.A
Overall payment appraisal : ( )
Excellent ( ) Good
(X) Average ( ) Fair
( ) Poor ( )
Not yet determined. The appraisal serves as a reference to reveal SC's payments
habits and ability to pay. It is based
on the 3 weighed factors: Trade payment
experience (through current enquiry with SC's suppliers), our delinquent
payment and our debt collection record concerning SC.
Trade payment experience : SC did not provide any name of
trade/service suppliers and we have no other sources to conduct the enquiry at
present.
Delinquent payment record : None in our database.
Debt collection record : No overdue amount owed by SC was placed to
us for collection within the last 6 years.
SC declined to release its bank details.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As
of Mar. 31, 2014 |
As
of Dec. 31, 2013 |
|
Cash & bank |
4,473,253 |
4,753,422 |
|
Inventory |
3,111,745 |
2,754,085 |
|
Accounts receivable |
2,393,420 |
2,561,139 |
|
Notes receivable |
185,536 |
235,344 |
|
Other Accounts receivable |
168,341 |
113,734 |
|
Advances to supplies |
665,409 |
421,927 |
|
Interest receivable |
75,718 |
54,152 |
|
Non-current assets due within one year |
397,000 |
498,000 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
11,470,422 |
11,391,803 |
|
Fixed assets |
3,770,427 |
3,859,206 |
|
Projects under construction |
572,323 |
507,933 |
|
Long term investment |
0 |
0 |
|
Financial assets available for sale |
195 |
194 |
|
Held-to-maturity investment |
500,000 |
400,000 |
|
Intangible assets |
1,020,730 |
1,026,403 |
|
Goodwill |
252,380 |
252,380 |
|
Long-term deferred expense |
11,664 |
12,209 |
|
Deferred tax assets |
128,043 |
135,888 |
|
Other assets |
4 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
17,726,188 |
17,586,016 |
|
|
============= |
============= |
|
Short loans |
2,092,368 |
1,668,646 |
|
Accounts payable |
2,007,020 |
1,933,889 |
|
Notes payable |
440,116 |
487,716 |
|
Accrued Payroll |
47,083 |
166,431 |
|
Taxes payable |
25,167 |
24,128 |
|
Advances from customers |
1,934,480 |
1,908,638 |
|
Interest payable |
25,367 |
92,846 |
|
Other Accounts payable |
187,927 |
213,028 |
|
Non-current liabilities due within one year |
0 |
242,095 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
6,759,528 |
6,737,417 |
|
Long term loans |
647,731 |
670,217 |
|
Bond payable |
1,791,250 |
1,790,805 |
|
Long-term payables |
296,480 |
296,480 |
|
Estimated liabilities |
4,953 |
3,866 |
|
Deferred tax liabilities |
43,156 |
42,893 |
|
Other liabilities |
185,923 |
188,273 |
|
|
------------------ |
------------------ |
|
Total liabilities |
9,729,021 |
9,729,951 |
|
Equities |
7,997,167 |
7,856,065 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
17,726,188 |
17,586,016 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
Jan.
1 to Mar. 31, 2014 |
As
of Dec. 31, 2013 |
|
Turnover |
1,554,018 |
5,083,111 |
|
Cost of goods sold |
1,100,881 |
3,280,944 |
|
Taxes and additional of main operation |
4,283 |
36,010 |
|
Sales expense |
31,522 |
123,536 |
|
Management expense |
267,058 |
1,186,516 |
|
Finance expense |
17,322 |
58,381 |
|
Assets impairment loss |
20,080 |
52,017 |
|
Investment income |
23,681 |
80,492 |
|
Non-operating income |
20,327 |
153,802 |
|
Non-operating expense |
1,697 |
9,031 |
|
Profit before tax |
155,183 |
570,970 |
|
Less: profit tax |
15,817 |
70,574 |
|
Profits |
139,366 |
500,396 |
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2011 |
|
Cash & bank |
4,275,708 |
1,669,920 |
|
Inventory |
2,187,796 |
2,248,828 |
|
Accounts receivable |
2,383,506 |
1,925,895 |
|
Notes receivable |
293,934 |
441,667 |
|
Other Accounts receivable |
211,906 |
167,433 |
|
Advances to supplies |
587,597 |
758,897 |
|
Interest receivable |
41,912 |
0 |
|
Non-current assets due within one year |
300,000 |
168,750 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
10,282,359 |
7,381,390 |
|
Fixed assets |
3,755,922 |
3,716,762 |
|
Projects under construction |
602,708 |
427,391 |
|
Long term investment |
0 |
3,750 |
|
Financial assets available for sale |
192 |
188 |
|
Held-to-maturity investment |
400,000 |
0 |
|
Intangible assets |
1,037,400 |
1,058,107 |
|
Goodwill |
252,380 |
253,910 |
|
Long-term deferred expense |
13,191 |
10,411 |
|
Deferred tax assets |
101,980 |
74,863 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
16,446,132 |
12,926,772 |
|
|
============= |
============= |
|
Short loans |
2,180,984 |
2,090,735 |
|
Accounts payable |
2,299,124 |
2,205,976 |
|
Notes payable |
466,801 |
576,367 |
|
Accrued Payroll |
145,726 |
147,133 |
|
Taxes payable |
71,458 |
133,755 |
|
Advances from customers |
1,831,562 |
2,473,816 |
|
Interest payable |
9,928 |
15,083 |
|
Other Accounts payable |
229,047 |
152,425 |
|
Non-current liabilities due within one year |
0 |
349,900 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
7,234,630 |
8,145,190 |
|
Long term loans |
1,172,693 |
992,475 |
|
Bond payable |
0 |
0 |
|
Long-term payables |
298,645 |
7,093 |
|
Estimated liabilities |
11,199 |
26,612 |
|
Deferred tax liabilities |
43,455 |
70,106 |
|
Other liabilities |
178,972 |
166,770 |
|
|
------------------ |
------------------ |
|
Total liabilities |
8,939,594 |
9,408,246 |
|
Equities |
7,506,538 |
3,518,526 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
16,446,132 |
12,926,772 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
As
of Dec. 31, 2012 |
As
of Dec. 31, 2011 |
|
Turnover |
7,235,808 |
7,041,101 |
|
Cost of goods sold |
4,956,439 |
4,810,944 |
|
Taxes and additional of main operation |
55,295 |
59,045 |
|
Sales expense |
130,125 |
106,779 |
|
Management expense |
1,112,771 |
1,050,987 |
|
Finance expense |
123,452 |
165,972 |
|
Assets impairment loss |
26,639 |
28,089 |
|
Investment income |
46,719 |
88,561 |
|
Non-operating income |
110,711 |
66,185 |
|
Non-operating expense |
7,682 |
9,547 |
|
Profit before tax |
980,836 |
964,485 |
|
Less: profit tax |
108,786 |
136,431 |
|
Profits |
872,050 |
828,054 |
Important
Ratios
=============
|
|
As
of Mar. 31, 2014 |
As
of Dec. 31, 2013 |
As
of Dec. 31, 2012 |
As
of Dec. 31, 2011 |
|
*Current ratio |
1.70 |
1.69 |
1.42 |
0.91 |
|
*Quick ratio |
1.24 |
1.28 |
1.12 |
0.63 |
|
*Liabilities to assets |
0.55 |
0.55 |
0.54 |
0.73 |
|
*Net profit margin (%) |
8.97 |
9.84 |
12.05 |
11.76 |
|
*Return on total assets (%) |
0.79 |
2.85 |
5.30 |
6.41 |
|
*Inventory /Turnover ×365 |
/ |
198 days |
111 days |
117 days |
|
*Accounts receivable/Turnover ×365 |
/ |
184 days |
121 days |
100 days |
|
*Turnover/Total assets |
0.09 |
0.29 |
0.44 |
0.54 |
|
* Cost of goods sold/Turnover |
0.71 |
0.65 |
0.68 |
0.68 |
PROFITABILITY:
FAIRLY GOOD
The turnover of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is average.
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in 2012, 2013
and the first quarter of 2014, but fair in 2011.
SC’s quick ratio is maintained in a normal level in 2012, 2013 and the
first quarter of 2014, but fair in 2011.
The inventory of SC appears fairly large.
The accounts receivable of SC is fairly large.
SC’s short-term loan is fairly large.
SC’s turnover is in a poor level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Stable.
SC is considered large-sized in its line with fairly stable financial conditions.
The large amount of inventory, accounts receivable and short-term loan could be
a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.77 |
|
|
1 |
Rs.100.72 |
|
Euro |
1 |
Rs.80.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
TPT |
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.