MIRA INFORM REPORT

 

 

Report Date :

20.12.2014

 

IDENTIFICATION DETAILS

 

Name :

GLOBE DIAMONDS SINGAPORE PTE. LTD.

 

 

Registered Office :

545, Orchard Road, 12-05, Far East Shopping Centre, 238882

 

 

Country :

Singapore

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

11.07.2012

 

 

Com. Reg. No.:

201217160-N

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of Diamonds & Jewelleries

 

 

No of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

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)

Singapore

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

SINGAPORE - ECONOMIC OVERVIEW

 

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but rebounded 15.1% in 2010, on the strength of renewed exports, before slowing to in 2011-13, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

 

Source : CIA

 

 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

201217160-N

COMPANY NAME

:

GLOBE DIAMONDS SINGAPORE PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

11/07/2012

 

 

 

 

 

 

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

 

 

 

 

 

 

REGISTERED ADDRESS

:

545, ORCHARD ROAD, 12-05, FAR EAST SHOPPING CENTRE, 238882, SINGAPORE.

BUSINESS ADDRESS

:

NO. 3 KAKI BUKIT PLACE, EUNOS TECH PARK, 416181, SINGAPORE.

TEL.NO.

:

65-66719300

FAX.NO.

:

65-67468323

CONTACT PERSON

:

MEHTA VIMESH PIYUSH ( DIRECTOR )

 

 

 

 

 

 

PRINCIPAL ACTIVITY

:

TRADING OF DIAMONDS, JEWELLERIES

 

 

 

ISSUED AND PAID UP CAPITAL

:

5,000,000.00 ORDINARY SHARE, OF A VALUE OF SGD 5,000,000.00

 

 

 

SALES

:

USD 17,808,954 [2013]

NET WORTH

:

USD 817,142 [2013]

 

 

 

STAFF STRENGTH

:

N/A

BANKER (S)

:

DBS BANK LTD

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

POOR

MANAGEMENT CAPABILITY

:

AVERAGE

 

 

 

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND


The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) trading of diamonds, jewelleries.



 

Share Capital History

Date

Issue & Paid Up Capital

24/09/2014

SGD 5,000,000.00


The major shareholder(s) of the Subject are shown as follows :


Name

Address

IC/PP/Loc No

Shareholding

(%)

MEHTA VIMESH PIYUSH +

3, TANJONG RHU ROAD 12-01, THE WATERSIDE, 436881, SINGAPORE.

S6884838E

2,500,000.00

50.00

TAKA JEWELLERY PTE. LTD.

3, KAKI BUKIT PLACE, EUNOS TECHPARK, 416181, SINGAPORE.

199708664G

2,500,000.00

50.00

 

 

 

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

------

 

 

 

5,000,000.00

100.00

 

 

 

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

=====

+ Also Director





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

TEO BOON LENG

Address

:

73A, LORONG H TELOK KURAU, 426090, SINGAPORE.

IC / PP No

:

S0059581J

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

11/07/2012

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

MEHTA VIMESH PIYUSH

Address

:

3, TANJONG RHU ROAD 12-01, THE WATERSIDE, 436881, SINGAPORE.

IC / PP No

:

S6884838E

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

11/07/2012

 

 

 

 

 

 

 

 

 

 

 

 




MANAGEMENT

 

 

 

1)

Name of Subject

:

MEHTA VIMESH PIYUSH

 

Position

:

DIRECTOR

 

 

 

 

 

AUDITOR

 

Auditor

:

RT LLP

Auditor' Address

:

N/A

 

 

 

 

 

 

 

COMPANY SECRETARIES

 

 

1)

Company Secretary

:

YANG CHIAH MING @ YENG CHIAH MING

 

IC / PP No

:

S1170628B

 

 

 

 

 

Address

:

8A, LORONG KISMIS, UNIQUE GARDEN, 598004, SINGAPORE.

 

 

 

 

 

 

 

 

 

 

 

 

 

BANKING


Banking relations are maintained principally with :

1)

Name

:

DBS BANK LTD

 

 

 

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

C201210455

13/09/2012

N/A

DBS BANK LTD.

-

Unsatisfied

 

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank against the Subject whether the subject has been involved in any litigation.

No legal action was found in our databank.

No winding up petition was found in our databank.

PAYMENT RECORD

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A

 

 

 


The Subject refused to disclose its suppliers.

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

 

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

 

]

 

Good 31-60 Days

[

 

]

 

Average 61-90 Days

[

 

]

 

Fair 91-120 Days

[

 

]

 

Poor >120 Days

[

X

]

 

 

 

 

 

 

 

CLIENTELE

 

Local

:

N/A

 

 

 

Overseas

:

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The Subject refused to disclose its clientele.

OPERATIONS

 

Goods Traded

:

DIAMONDS, JEWELLERIES

 

 

 

 

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) trading of diamonds, jewelleries.

The Subject sells jewelleries, stones, diamonds and others.


CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

6887 4112

Current Telephone Number

:

65-66719300

Match

:

NO

 

 

 

Address Provided by Client

:

NO. 3, KAKI BUKIT PLACE, EUNOS TECHPARK, SINGAPORE 416181

Current Address

:

NO. 3 KAKI BUKIT PLACE, EUNOS TECH PARK, 416181, SINGAPORE.

Match

:

YES

 

 

 

 

Other Investigations


On 24th September 2014 we contacted one of the staff from the Subject and she provided some information.

She refused to disclose the number of employees.

FINANCIAL ANALYSIS

 

Profitability

 

 

 

 

 

 

Return on Shareholder Funds

:

Favourable

[

89.97%

]

 

Return on Net Assets

:

Favourable

[

40.55%

]

 

 

 

 

 

 

 

 

Generally the Subject was profitable. The favourable return on shareholders' funds and return on net assets indicate that the Subject's management was efficient in utilising the assets to generate returns.

 

 

 

 

 

 

 

Working Capital Control

 

 

 

 

 

 

Stock Ratio

:

Favourable

[

55 Days

]

 

Debtor Ratio

:

Unfavourable

[

111 Days

]

 

Creditors Ratio

:

Unfavourable

[

266 Days

]

 

 

 

 

 

 

 

 

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

 

 

 

 

 

 

 

Liquidity

 

 

 

 

 

 

Liquid Ratio

:

Acceptable

[

0.85 Times

]

 

Current Ratio

:

Unfavourable

[

1.02 Times

]

 

 

 

 

 

 

 

 

The Subject's liquid ratio was slightly low. This could indicate that the Subject's working capital was slightly deficient. The Subject will have to improve its liquidity position either by obtaining short term financing or increase its paid up capital so that it can meet all its short term obligations as and when they fall due.

 

 

 

 

 

 

 

Solvency

 

 

 

 

 

 

Interest Cover

:

Favourable

[

66.88 Times

]

 

Gearing Ratio

:

Unfavourable

[

1.62 Times

]

 

 

 

 

 

 

 

 

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Overall Assessment :

 

 

 

 

 

 

The Subject's liquidity was at an acceptable range. If the Subject is able to obtain further short term financing, it should be able to meet all its short term obligations. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

 

 

 

 

 

 

 

Overall financial condition of the Subject : STABLE

 

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

 

Major Economic Indicators :

2009

2010

2011

2012

2013

 

 

 

 

 

 

Population (Million)

4.98

5.08

5.18

5.31

5.40

Gross Domestic Products ( % )

(0.8)

14.5

4.9

1.3

3.7

Consumer Price Index

0.6

2.8

5.2

4.6

2.4

Total Imports (Million)

356,299.3

423,221.8

459,655.1

474,554.0

466,762.0

Total Exports (Million)

391,118.1

478,840.7

514,741.2

510,329.0

513,391.0

 

 

 

 

 

 

Unemployment Rate (%)

3.2

2.2

2.1

2.0

1.9

Tourist Arrival (Million)

9.68

11.64

13.17

14.49

15.46

Hotel Occupancy Rate (%)

75.8

85.6

86.5

86.4

86.3

Cellular Phone Subscriber (Million)

1.37

1.43

1.50

1.52

1.97

 

 

 

 

 

 

Registration of New Companies (No.)

26,414

29,798

32,317

31,892

37,288

Registration of New Companies (%)

4.3

12.8

8.5

(1.3)

9.8

Liquidation of Companies (No.)

22,393

15,126

19,005

17,218

17,369

Liquidation of Companies (%)

113.4

(32.5)

25.6

9.4

(5.3)

 

 

 

 

 

 

Registration of New Businesses (No.)

26,876

23,978

23,494

24,788

22,893

Registration of New Businesses (%)

8.15

(10.78)

2.02

5.51

1.70

Liquidation of Businesses (No.)

23,552

24,211

23,005

22,489

22,598

Liquidation of Businesses (%)

11.4

2.8

(5)

(2.2)

0.5

 

 

 

 

 

 

Bankruptcy Orders (No.)

2,058

1,537

1,527

1,748

1,992

Bankruptcy Orders (%)

(11.5)

(25.3)

(0.7)

14.5

14.0

Bankruptcy Discharges (No.)

3,056

2,252

1,391

1,881

2,584

Bankruptcy Discharges (%)

103.7

(26.3)

(38.2)

35.2

37.4

 

 

 

 

 

 

INDUSTRIES ( % of Growth ) :

 

 

 

 

 

Agriculture

 

 

 

 

 

Production of Principal Crops

3.25

(0.48)

4.25

3.64

-

Fish Supply & Wholesale

(1.93)

(10.5)

12.10

(0.5)

-

 

 

 

 

 

 

Manufacturing *

71.5

92.8

100.0

100.3

102.0

Food, Beverages & Tobacco

90.4

96.4

100.0

103.5

103.5

Textiles

145.9

122.1

100.0

104.0

87.1

Wearing Apparel

211.0

123.3

100.0

92.1

77.8

Leather Products & Footwear

79.5

81.8

100.0

98.6

109.8

Wood & Wood Products

101.4

104.0

100.0

95.5

107.4

Paper & Paper Products

95.4

106.1

100.0

97.4

103.2

Printing & Media

100.9

103.5

100.0

93.0

86.1

Crude Oil Refineries

96.4

95.6

100.0

99.4

93.5

Chemical & Chemical Products

80.3

97.6

100.0

100.5

104.1

Pharmaceutical Products

49.1

75.3

100.0

109.7

107.2

Rubber & Plastic Products

101.2

112.3

100.0

96.5

92.9

Non-metallic Mineral

91.9

92.5

100.0

98.2

97.6

Basic Metals

92.6

102.2

100.0

90.6

76.5

Fabricated Metal Products

90.8

103.6

100.0

104.3

105.1

Machinery & Equipment

57.3

78.5

100.0

112.9

114.5

Electrical Machinery

86.8

124.1

100.0

99.3

108.5

Electronic Components

85.2

113.6

100.0

90.6

94.3

Transport Equipment

96.0

94.0

100.0

106.3

107.5

 

 

 

 

 

 

Construction

(36.9)

14.20

20.50

28.70

-

Real Estate

1.4

21.3

25.4

31.9

-

 

 

 

 

 

 

Services

 

 

 

 

 

Electricity, Gas & Water

1.70

4.00

7.00

6.30

-

Transport, Storage & Communication

3.90

12.80

7.40

5.30

-

Finance & Insurance

(16.4)

(0.4)

8.90

0.50

-

Government Services

4.50

9.70

6.90

6.00

-

Education Services

0.10

(0.9)

(1.4)

0.30

-

 

 

 

 

 

 

* Based on Index of Industrial Production (2011 = 100)

 

 

 

 

 

(Source : Department of Statistics)

 

 

 

 

 



INDUSTRY ANALYSIS

 

INDUSTRY :

TRADING

 

 

 

The wholesale and retail trade sector contracted by 1.5% in the fourth quarter of 2012, extending the 0.2% decline in the preceding quarter. For the whole of 2012, the sector declined by 0.7%, reversing the 1.6% growth in 2011. The sector was weighed down primarily by the wholesale trade segment. In 2012, the wholesale trade segment contracted by 1.0%, a reversal from the 1.4% growth in 2011. Growth of the retail trade segment also moderated to 2.0%, from 3.2% in the year 2011.

 

The domestic wholesale trade index grew by 1.2% in the fourth quarter of 2012, an improvement from the 5.4% decline in the third quarter. This was partly due to an increase in the sales of chemicals & chemical products and ship chandlers & bunkering. For the full year of 2012, the domestic wholesale trade index contracted by 2.2%, extending the 1.7% decline in 2011. The foreign wholesale trade index grew by 8.6% in the fourth quarter, an increase from the 6.6% growth in the third quarter. The expansion was partly due to resilient sales of petroleum & petroleum products. For the whole of 2012, the foreign wholesale trade index expanded by 9.1%, faster than the 4.3% increase in 2011.

 

In the fourth quarter of 2012, retail sales volume declined by 2.0%, extending the 0.3% decline in the third quarter. Excluding motor vehicles, retail sales volume grew by 0.4%, a slight moderation compared to the 1.5% gain in the third quarter of 2012. The sales volume of motor vehicles fell by 11% in the fourth quarter of 2012, after contracting by 6.1% in the third quarter. The sales of several discretionary items also declined in the fourth quarter. Besides, the sales of optical goods & books in 2012 fell by 3.6%, while the sales of telecommunications apparatus & computers declined by 1.4%.

 

For 2012 as a whole, retail sales volume grew by 1.3%, compared to the 2.0% expansion in 2011. Excluding motor vehicle sales, the increase in retail sales volume also moderated from 5.4% in 2011 to 1.7% in 2012. Medical goods & toiletries registered the largest increase (9.3%) in sales, followed by telecommunications apparatus & computers (6.9%). By contrast, the sales of watches & jewellery (-2.2%) and optical goods & books (-3.6%) declined.

 

 

 

OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH



CREDIT RISK EVALUATION & RECOMMENDATION

 

 


Incorporated in 2012, the Subject is a Private Limited company, focusing on trading of diamonds, jewelleries. The Subject has been in business for less than 5 years and it has slowly been building up contact with its clients while competing in the industry. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future.

Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

Based on the higher profitability, the Subject has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. The Subject managed to maintain an adequate liquidity level, indicating that the Subject has the ability to meet its financial obligations. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk.

Having a strong assets backing, the Subject possesses latent assets as collateral for further financial extension. Hence, it has good chance of getting loans if the needs arises.

The poor payment habit may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry.

Based on the above condition, we recommend credit be granted to the Subject normally.

 

 

PROFIT AND LOSS ACCOUNT

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH SINGAPORE FINANCIAL REPORTING STANDARDS.

GLOBE DIAMONDS SINGAPORE PTE. LTD.

 

Financial Year End

2013-03-31

Months

9

Consolidated Account

Company

Audited Account

YES

Unqualified Auditor's Report (Clean Opinion)

YES

Financial Type

FULL

Currency

USD

 

 

TURNOVER

17,808,954

 

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

Total Turnover

17,808,954

Costs of Goods Sold

(16,847,696)

 

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

Gross Profit

961,258

 

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

 

 

PROFIT/(LOSS) FROM OPERATIONS

832,706

 

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

PROFIT/(LOSS) BEFORE TAXATION

832,706

Taxation

(97,514)

 

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

PROFIT/(LOSS) AFTER TAXATION

735,192

 

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

PROFIT AVAILABLE FOR APPROPRIATIONS

735,192

 

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

735,192

 

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

 

 

INTEREST EXPENSE (as per notes to P&L)

 

Term loan / Borrowing

12,610

Others

30

 

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

 

12,640

 

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

 

 

 

BALANCE SHEET

 

 

GLOBE DIAMONDS SINGAPORE PTE. LTD.

 

ASSETS EMPLOYED:

 

FIXED ASSETS

1,742,471

 

 

 

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

TOTAL LONG TERM ASSETS

1,742,471

 

 

Stocks

2,671,649

Trade debtors

5,433,063

Other debtors, deposits & prepayments

3,749

Amount due from related companies

7,067,783

Cash & bank balances

349,794

Amount owing by shareholders

12,079

 

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

TOTAL CURRENT ASSETS

15,538,117

 

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

TOTAL ASSET

17,280,588

 

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

 

 

CURRENT LIABILITIES

 

Trade creditors

12,255,646

Other creditors & accruals

1,415,495

Short term borrowings/Term loans

58,032

Amounts owing to related companies

149

Amounts owing to director

1,369,010

Provision for taxation

97,514

 

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

TOTAL CURRENT LIABILITIES

15,195,846

 

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

NET CURRENT ASSETS/(LIABILITIES)

342,271

 

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

TOTAL NET ASSETS

2,084,742

 

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

 

 

SHARE CAPITAL

 

Ordinary share capital

81,950

 

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

TOTAL SHARE CAPITAL

81,950

 

 

Retained profit/(loss) carried forward

735,192

 

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

TOTAL RESERVES

735,192

 

 

 

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

SHAREHOLDERS' FUNDS/EQUITY

817,142

 

 

Long term loans

1,267,600

 

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

TOTAL LONG TERM LIABILITIES

1,267,600

 

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

 

2,084,742

 

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

 

 

 

 

 

FINANCIAL RATIO

 

 

GLOBE DIAMONDS SINGAPORE PTE. LTD.

 

TYPES OF FUNDS

 

Cash

349,794

Net Liquid Funds

349,794

Net Liquid Assets

(2,329,378)

Net Current Assets/(Liabilities)

342,271

Net Tangible Assets

2,084,742

Net Monetary Assets

(3,596,978)

BALANCE SHEET ITEMS

 

Total Borrowings

1,325,632

Total Liabilities

16,463,446

Total Assets

17,280,588

Net Assets

2,084,742

Net Assets Backing

817,142

Shareholders' Funds

817,142

Total Share Capital

81,950

Total Reserves

735,192

LIQUIDITY (Times)

 

Cash Ratio

0.02

Liquid Ratio

0.85

Current Ratio

1.02

WORKING CAPITAL CONTROL (Days)

 

Stock Ratio

55

Debtors Ratio

111

Creditors Ratio

266

SOLVENCY RATIOS (Times)

 

Gearing Ratio

1.62

Liabilities Ratio

20.15

Times Interest Earned Ratio

66.88

Assets Backing Ratio

25.44

PERFORMANCE RATIO (%)

 

Operating Profit Margin

4.68

Net Profit Margin

4.13

Return On Net Assets

40.55

Return On Capital Employed

40.55

Return On Shareholders' Funds/Equity

89.97

Dividend Pay Out Ratio (Times)

0.00

NOTES TO ACCOUNTS

 

Contingent Liabilities

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.06

UK Pound

1

Rs.98.73

Euro

1

Rs.77.45

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

DPT

 

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

 

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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%)

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.