MIRA INFORM REPORT

 

 

Report Date :

19.12.2014

 

IDENTIFICATION DETAILS

 

Name :

DAIICHI JITSUGYO CO., LTD.

 

 

Registered Office :

Kowa Nibancho Bldg., 11-19, Nibancho, Chiyoda-Ku, Tokyo 102-0084

 

 

Country :

Japan

 

 

Date of Incorporation :

12.08.1948

 

 

Com. Reg. No.:

0100-01-008714

 

 

Legal Form :

Listed

 

 

Line of Business :

Trader of Machinery.

 

 

No of Employees :

1,069

 

 

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

 

Maximum Credit Limit :

US$ 12 Million

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Japan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

JAPAN - ECONOMIC OVERVIEW

 

In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Prime Minister Shinzo ABE has declared the economy his government's top priority; he has overturned his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus, monetary easing, and structural reform. Japan joined the Trans Pacific Partnership negotiations in 2013, a pact that would open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2013 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. The new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which is exceeding 230% of GDP. To help raise government revenue and reduce public debt, Japan decided in 2013 to gradually increase the consumption tax to a total of 10% by the year 2015. Japan is making progress on ending deflation due to a weaker yen and higher energy costs, but reliance on exports to drive growth and an aging, shrinking population pose other major long-term challenges for the economy.

 

Source : CIA

 

COMPANY NAME

 

DAIICHI JITSUGYO CO., LTD.

 

 

OUTLINE

========

Country:                                                Japan

Company name:                                    DAIICHI JITSUGYO CO., LTD.

Name in local language:                         DAIICHI JITSUGYO K.K.  (第一実業株式会社)

Office address:                                     Kowa Nibancho Bldg., 11-19, Nibancho, Chiyoda-ku,

                                                            Tokyo 102-0084

Office tel                                                          03-5214-8500

Office fax:                                            03-5214-8501

Office e-mail:                                        info@djk.co.jp

Website:                                               www.djk.co.jp

Business type:                                      Trader

Industry:                                                           Machinery

Established:                                          August 12, 1948

Capital:                                                             Jp. 5,105,000,000 yen

Employees:                                          1,069

Corporate formation:                             Listed

Corporation No.:                                   0100-01-008714 (Tokyo Legal Affairs Bureau)

 

 

MAJOR SHAREHOLDERS

 

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

As of March 31, 2014:

Paid up capital :                                                Jp. 5,105,000,000 yen

Number of authorized shares :               160,000,000 shares

Number of outstanding shares :             55,432,000 shares

Number of shareholders :                      5,691

 

Name of shareholders                                      Number of Thousand Shares (%)

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

 

Mizuho Bank, Ltd.                                                           2,557 (4.61)

Sumitomo Mitsui Banking Corp.                                     2,554 (4.61)

Bank of Tokyo-Mitsubishi UFJ, Ltd.                                1,864 (3.36)

Resona Bank, Ltd.                                                         1,691 (3.05)

Nippon Koa Insurance Co., Ltd.                                     1,521 (2.74)

Mitsubishi Heavy Industries, Ltd.                                                1,455 (2.62)

Japan Trustee Services Bank, Ltd.                                  1,441 (2.60)

Master Trust Bank of Japan, Ltd.                                      907 (1.64)

Meiji Yasuda Life Insurance Co.                                      891 (1.61)

Employees shareholders’ funds                                      820 (1.48)

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

Total                                                                            15,701 (28.32)

 

Besides the above major shareholders, the subject keeps 2,429,000 shares(4.38%) as treasury stocks.

 

 

DETAILED PRODUCT CLASSFICATION & ACTIVITY

 

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

Activity                         Product/Service Description

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

Trading                                     Industrial machinery    

Trading                                     Industrial materials

Trading                                     Electronic components

 

 

Brands & Trade marks

 

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

DJK

 

 

COMPANY MANAGEMENT

 

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

President                      Mr. Koji Yamagata (*)

Nationality:                    Japan

 

Vice President               Mr. Tohru Tsuda (*)

Nationality:                    Japan

 

Managing Director         Mr. Yoshihide Yamanaka

Nationality:                    Japan

 

Managing Director         Mr. Michiaki Sugiura

Nationality:                    Japan

 

Managing Director         Mr. Junzo Takai

Nationality:                    Japan

 

Managing Director        Mr. Shigeki Terakawa

Nationality                     Japan

 

Auditor                                     Mr. Masakazu Fujinaga

Nationality:                    Japan

 

Auditor                                     Mr. Isao Takesue

Nationality:                    Japan

 

Auditor                                     Mr. Tsuyoshi Terui

Nationality:                    Japan

 

Auditor                                     Mr. Toshihiko Matsumiya

Nationality:                    Japan

 

 

Note: The names of directors and auditors are phonetically spelt.

      (*): Representative directors

 

 

*Key Personnel*

 

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

Mr. Koji Yamagata

Representative director and president since April 2011

Born on: February 2, 1952

 

 

Business career:

 

  Apr. 1975: Employed by the subject.

  Jun. 2005: Director.

  Jun. 2010: Managing director.

 

Major responsibility:

 

In charge of Electronics Division, Audit, Business Development, Daiichi Jitsugyo (America), Inc., DJK Europe GmbH, Shanghai DJK Group., Daiichi Jitsugyo Asia Pte. Ltd.

 

 

FINANCIALS

 

==========

Currency: (local currency – Jp. yen)

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

Year |               Sales     |                      Net Income

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

2009

127,285,000,000

1,384,000,000

2010

85,058,000,000

363,000,000

2011

108,079,000,000

2,448,000,000

2012

125,502,000,000

2,643,000,000

2013

128,229,000,000

3,051,000,000

2014

122,102,000,000

2,459,000,000

 

 

FINANCIAL DESCRIPTION

 

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

*Book Closing*

March 31st

 

*Financials*

==========

 

Consolidated Balance Sheet

 

 

 

Unit: millions of JP yen

 

 

 

                          

3/31/2012

3/31/2013

3/31/2014

Current Assets  

75,821

71,445

70,276

 Cash & deposits      

13,604

12,974

13,657

 Account receivables   

42,809

38,390

34,223

 Inventories          

9,156

8,849

9,860

 Others

10,252

11,232

12,536

Fixed assets           

7,937

10,033

11,166

 Tangible assets      

1,784

2,544

3,155

 Intangible assets    

83

111

143

 

 

Investments & others  

6,070

7,377

7,868

Total Assets       

83,759

81,478

81,443

 

 

 

 

Current liabilities     

56,965

51,122

48,341

 Account payables  

30,193

32,228

27,272

 Short term loans    

14,731

6,939

8,041

 Long term loans due   

152

60

104

 Received in advance payables  

7,891

8,574

9,605

 Outstanding taxes    

1,702

1,244

1,064

 Others

2,296

2,077

2,255

Fixed liabilities      

625

1,342

1,904

 Long term loans     

0

350

546

 Retirement benefits    

283

244

604

 Others

342

748

754

Shareholders' equity    

25,740

28,070

29,670

 Paid up capital      

5,105

5,105

5,105

 Capital reserves      

3,786

3,786

3,786

 Retained earnings    

18,063

20,258

21,808

 Treasury stock        

-1,214

-1,079

-1,029

Valuation & adjustment 

-234

791

1,434

Minority Interest    

560

55

-

Warrants

100

96

93

Total Net Assets       

26,167

29,013

31,197

Total Liabilities & Net Assets     

83,759

81,478

81,443

 

 

 

 

 

 

 

 

Consolidated Income Statement

 

 

 

Unit : millions of JP yen

 

 

 

                          

3/31/2012

3/31/2013

3/31/2014

Sales          

125,502

128,229

122,102

Cost of goods sold      

108,689

111,519

104,739

Gross profit(loss)    

16,813

16,710

17,363

Sales/administrative expenses  

11,714

12,119

13,288

Operating profit(loss)    

5,098

4,590

4,074

Non operating income        

536

642

582

Non operating expenses       

200

307

182

Ordinary profit(loss)      

5,434

4,925

4,475

Special profits                

9

845

120

Special losses             

481

10

83

Pretax profit                

4,961

5,759

4,511

Taxes & adjustment            

2,135

2,446

2,046

Minority interest   

183

262

5

Net profit      

2,643

3,051

2,459

 

 

*Latest Financials *

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

As of September 30, 2013:

 

Unit: millions of JPY

 

Year term

Sales 

Operating profit

Ordinary profit

Net profit

2Q 2015        

73,331

1,723

1,982

1,306

2Q 2014        

62,356

1,927

2,099

1,107

 

 

Current assets:

76,278

Fixed assets:

15,176

Total assets:

91,455

Current liabilities:

54,611

Fixed liabilities:

4,368

Shareholders’ equity:

30,979

  Retained earnings:

23,013

Total net assets:

32,475

Total liabilities & net assets:

91,455

 

 

*Transacting banks*

 

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

Mizuho Bank, Ltd., Uchisaiwaicho branch

Sumitomo Mitsui Banking Corporation, Kojimachi branch

Bank of Tokyo-Mitsubishi UFJ, Ltd., Jinbocho branch

 

 

*Credit Opinion*

 

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

One of the second tier group of trading firms specialized in machinery since 1948.

The subject posted another record high net income for March 2013, which topped JPY 3,000 thanks to successful growth of motor vehicle-related business segments.

A newly founded business facility in India is expected to become a stronghold of marketing auto-making equipment and chemical-related machines.

The plant-related business is expected to boost the bottom line for 2015 term.

Started a new project for planting business in the nation.

New and robust inquiries for LNG and chemical plants are coming up from abroad.

Negative factors are not observed in particular at present.

Our standard suggestion would be up to US$12 million on terms of 90 days.

 

 

LOCAL BRANCHES & MANAGEMENT

 

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

Branch name:                OSAKA 

Branch address:            Kita-ku, Osaka-shi                 

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

Branch name:                NAGOYA 

Branch address:            Naka-ku, Nagoya-shi             

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

Branch name:                TOHOKU 

Branch address:            Aoba-ku, Sendai-shi

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

Branch name:                HIROSHIMA                             

Branch address:            Naka-ku, Hiroshima-shi              

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

Branch name:                FUKUOKA       

Branch address:            Hakata-ku, Fukuoka-shi              

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

Branch name:                SAPPORO                               

Branch address:            Chuo-ku, Sapporo-shi              

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

Branch name:                SEOUL

Branch address:            R.O.K.

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

 

Three other representative offices.

 

 

PRODUCT, TECHNOLOGY, SERVICE DESCRIPTION

 

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

 

*Major Fields of Business*

 

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

Import, export and domestic sales

- Machinery and instruments for oil rigging & refining and petrochemical plants.

- Injection molding, extruding and printing machines for the plastics industry.

- SMT(Surface Mount Technology) equipment for the electronic industry.

- Computers, robots and factory automation system.

- Machinery and equipment for the pulp and paper industry.

- Drilling machinery for oil & gas and geothermal sector.

- Automatic filling & packaging equipment for the food and cosmetic industry.

- Building materials, cement, glass and other ceramics.

- Ground support equipment and hydrant systems for airports.

 

For March 2014:

- Plant & energy related business (23%)

- Electronic components & materials (25%)

- Industrial machines (30%)

- Others (220)

 

Overseas business accounts for 50 percent.

 

 

ORGANIZATION STRUCTURE

 

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

 

*Address*

 

=========

Registered address is same as that of the operational head office.

 

 

*Company History*

 

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

Date                                         Development

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

Aug.12, 1948:                            Incorporated in Shinagawa-ku Tokyo

Sept. 1952:                               Establishment of Osaka Office

Sept. 1960:                               Establishment of Nagoya Office

Sept. 1961:                               Establishment of Hiroshima Office

Aug. 1962:                                Listed on the Tokyo Stock Exchange (2nd Section)

Aug. 1964:                                Establishment of Sapporo Office

Apr. 1968:                                 Establishment of New York Office(Currently DAIICHI JITSUGYO

                                                            (AMERICA),INC.)

May 1970:                                 Founding of DAIICHI MACHINERY SERVICE CO.,LTD., as a subsidiary of                  DJK(Currently DAIICHI MECHA-TECH CORPORATION)

July 1971:                                 Establishment of Singapore Office

Jan. 1972:                                 Establishment of Kuala Lumpur Office(Currently DAI-ICHI JITSUGYO (MALAYSIA) SDN.BHD.)

Feb. 1974:                                Listed on the Tokyo Stock Exchange (1st Section)

Apr. 1974:                                 Establishment of Chicago Office(Currently Head office of DAIICHI JITSUGYO (AMERICA),INC.)

Oct. 1974:                                 Establishment of Houston Office(Currently DAIICHI JITSUGYO (AMERICA),INC.)

Jan. 1976:                                 Establishment of Los Angeles Office(Currently DAIICHI JITSUGYO

                                                (AMERICA),INC.)

Nov. 1983:                                Establishment of London Office

May 1984:                                 Founding of NATCO JAPAN CO.,LTD., as an affiliate of DJK

 

 

Oct. 1985:                                 Establishment of Hong Kong Office

Feb. 1986:                                Establishment of Demonstration, Service & Training Center (DST Center)

Dec. 1987:                                Founding of AHLSTROM DAIICHI CO.,LTD., as an affiliate of DJK (Currently SULZER DAIICHI K.K.)

Aug. 1988:                                Founding of DJK (Taiwan) Corp., as a subsidiary of DJK

Aug. 1989:                                32nd increase of capital brings total capitalization to 5,105,000,000-Yen

May 1993:                                 Establishment of Penang Office(Currently DAI-ICHI JITSUGYO

                                                (MALAYSIA) SDN.BHD.)

Dec. 1993:                                Establishment of Shanghai Office

Sept. 1994:                               Head Office transferred to Nibancho, Chiyoda-ku, Tokyo

Apr. 1995:                                 Founding of DAIICHI JITSUGYO(THAILAND) CO.,LTD. as an affiliate of DJK

July 1996:                                 Establishment of Manila Office (Currently DAIICHI JITSUGYO

                                                (PHILIPPINES),INC.)

Oct. 1996:                                 Establishment of Jakarta Office(Currently P.T.DJK INDONESIA)

Dec. 1997:                                Founding of SHANGHAI YISHI TRADING CO.,LTD.

Sept.1998:                                Founding of YAGUCHI TECHNO CO., LTD., as a subsidiary of DJK

July 2001:                                 Establishment of Shen Zhen Office

Oct. 2001:                                 Establishment of Frankfurt Office(Currently DJK Europe GmbH)

Dec. 2001:                                Establishment of San Diego Office(Currently DAIICHI JITSUGYO

                                                (AMERICA),INC.)

Dec. 2002:                                Establishment of Tianjin Office

Dec. 2003:                                Establishment of Prague Office

Apr. 2004:                                 Establishment of Ho Chi Minh Office

Apr. 2004:                                 Establishment of Seoul Office

Apr. 2004:                                 Daiichi Jitsugyo Technology Co., Ltd.(formerly, Daiichi Plastic Co., Ltd.),

a wholly-owned Subsidiary of the Company, took over part of the business of Renesas High Components, Inc. including the business of solder print inspection systems.

Jun. 2004:                                 Establishment of Guangzhou Office

Mar. 2005:                                 Founding of DAIICHI JITSUGYO ASIA PTE. LTD.

May 2005:                                 Establishment of Hungarian Office

July 2005:                                 Establishment of Dalian Office

July 2005:                                 Establishment of Hanoi Office

Sept. 2005:                               Founding of DAIICHI JITSUGYO VISWILL CO., LTD.

Oct. 2005:                                 Founding of DAIICHI JITSUGYO (HONG KONG) LIMITED.

Mar. 2006:                                 Founding of DAIICHI JITSUGYO (GUANGZHOU) TREADING CO., LTD.

Oct. 2006:                                 Establishment of Delhi Office

Apr. 2007:                                 Daiichi Jitsugyo Technology Co., Ltd. changed the trade name to DJTECH Co., Ltd.

Jun. 2007:                                 Founding of DAIICHI JITSUGYO DO BRASIL COMERCIO DE MAQUINAS TLDA.

 

 

Dec. 2007:                                Establishment of Bangalore Liaison Office

Dec. 2007:                                Establishment of Warsaw Office

Aug. 2008:                                Founding of DJK Europe GmbH

Jul. 2009:                                  Founding of P.T.DJK INDONESIA

Jan. 2010:                                 Opened an office in Qatar.

Sep. 2013:                                Opened a business facility in India.

Jul. 2014:                                  Opened an office in Shenyang, China.

 

 

TRADE REFERENCES

 

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

*Suppliers*

==========

- Panasonic Corp.

- Panasonic Factory Solutions Sales & Engineering Japan Co., Ltd.

- Mitsubishi Heavy Industries, Ltd.

- Mitsubishi Heavy Industries Plastic Technology Co., Ltd.

- Mitsubishi Kakouki Kaisha, Ltd.

- Asano Laboratories Co., Ltd.

- Noritake Co., Ltd.

- Daiichi Mecha-tech Corp.

 

*Customers*

==========

- Cosmo Oil Co., Ltd.

- Nippon Shokubai Co., Ltd.

- Cal Comp Electronics Public Co., Ltd.

- Denso Corp.

- Toyo Engineering Corp.

- Chu-etsu Pulp Industries Co., Ltd.

- Samsung Japan Corp.

- Ibiden Co., Ltd.

- Toyoda Gosei Co., Ltd.

 

 

RELATED PARTIES DESCRIPTION

 

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

*Subsidiaries & Affiliates*

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

As of March 31, 2014 the subject owns and controls a total of 23 subsidiaries and six affiliates at home and abroad. 

 

 

Some of them are as follows:

 

DAIICHI JITSUGYO(AMERICA), INC.

Headquarters(Chicago)

245 Spring Lake Drive, Itasca, Illinois 60143, U.S.A.

TEL.+1-630-875-0101  FAX.+1-630-875-0422

 

DJK GLOBAL MEXICO, S.A. DE C.V.

Blvd. Bellas Artes 17686-114 Fracc. Garita de Otay C.P. 22645, Tijuana, B.C. Mexico

TEL.664-647-8471 FAX664-647-8473

 

DAIICHI JITSUGYO DO BRASIL COMERCIO DE MAQUINAS LTDA.

Avenida Paulista, 37-4 andar, Sao Paulo, SP-01311 902, Brazil

TEL.+55-11-2246-2712

 

DJK(Taiwan) Corp.

11th Floor-3, 23, Sec 1, Chang-An East Road Taipei, Taiwan, R.O.C.

TEL.+886-2-2537-1017  FAX.+886-2-2521-6389

 

SHANGHAI YISHI TRADING CO., LTD.

Room 13F02-06 Aetna Tower No.107, Zunyi Road, Shanghai 200051, P.R. China

TEL.+86-021-6237-5800  FAX.+86-21-6237-5288

 

DAIICHI JITSUGYO(HONG KONG) LIMITED

Units 3007-3008, Shui On Centre 6-8 Harbour Road, Wanchai, Hong Kong, P.R.China

TEL.+852-2802-8233  FAX.+852-2802-9734

 

DAIICHI JITSUGYO(GUANGZHOU) TRADING CO., LTD.

Unit 6803A, CITIC Plaza, 233 Tianhe North Road, Guangzhou, P.R.China

TEL.+86-20-3877-2405  FAX.+86-20-3877-2410

 

DAIICHI JITSUGYO ASIA PTE. LTD.

No. 31 Kaki Bukit Road 3 #02-02 Singapore 417818

TEL.+65-6338-3732 FAX.+65-6337-6761

 

DAI-ICHI JITSUGYO(MALAYSIA) SDN.BHD.

Suite 21B, Box No.80, 21st Floor, UBN Tower, No.10 Jalan P.Ramlee 50250, Kuala Lumpur,

Malaysia

TEL.+60-3-2070-6913 FAX.+60-3-2070-6912

 

DAIICHI JITSUGYO(PHILIPPINES), INC.

Unit 2001-2002, Philippines AXA Life Centre Sen.Gil Puyat Avenue,Makati City, 1200,

Philippines

TEL.+63-2-759-6944 FAX.+63-2-759-6946

 

DAIICHI JITSUGYO(THAILAND) CO., LTD.

252/124 Unit E-F, 26th Floor, Muang Thai Phatra Office Tower II Rachadaphisek Road,

Huaykwang, Bangkok 10320, Thailand

TEL.+66-2-693-2681 FAX.+66-2-693-2683

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.32

UK Pound

1

Rs.98.68

Euro

1

Rs.78.11

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ANK

 

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.