MIRA INFORM REPORT

 

 

Report Date :

24.12.2014

 

IDENTIFICATION DETAILS

 

Name :

CONNELL BROS.  CO.  [THAILAND]  LTD.

 

 

Registered Office :

18th  Floor,  BB  Building,  Sukhumvit  21 [Asoke]  Road,   Klongtoeynua,  Wattana,  Bangkok  10110

 

 

Country :

Thailand

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

11.01.1981

 

 

Com. Reg. No.:

0100524000726

 

 

Legal Form :

Foreign  Branch

 

 

Line of Business :

·         Imports  and  distributes  of  specialty  chemicals  for  coating and  ink,  plastics  and  rubber,  personal  and  household  care,  food  ingredients, pharmaceutical  and  life  sciences,  paper,  construction,  adhesive,  plastics,  rubber  and  metal  work.

·         Exports of canned goods, commodity plastics and chemical products.                

 

 

No. of Employee :

62

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Thailand

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

THAILAND - ECONOMIC OVERVIEW

 

With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand achieved steady growth due largely to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Unemployment, at less than 1% of the labor force, stands as one of the lowest levels in the world, which puts upward pressure on wages in some industries. Thailand also attracts nearly 2.5 million migrant workers from neighboring countries. The Thai government in 2013 implemented a nation-wide 300 baht ($10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners. The Thai economy has weathered internal and external economic shocks in recent years. The global economic recession severely cut Thailand's exports, with most sectors experiencing double-digit drops. In late 2011 Thailand's recovery was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. The government approved flood mitigation projects worth $11.7 billion, which were started in 2012, to prevent similar economic damage, and an additional $75 billion for infrastructure over the following seven years. This was expected to lead to an economic upsurge but growth has remained slow, in part due to ongoing political unrest and resulting uncertainties. Spending on infrastructure will require re-approval once a new government is seated.

 

Source : CIA

 

 

 

 

Company name & address

 

CONNELL BROS.  CO.  [THAILAND]  LTD.

[ BANGKOK  BRANCH ]

 

 

SUMMARY

 

BUSINESS  ADDRESS                         :           18th  FLOOR,  BB  BUILDING, 

SUKHUMVIT  21 [ASOKE]  ROAD, 

KLONGTOEYNUA,  WATTANA, 

BANGKOK  10110,  THAILAND

TELEPHONE                                         :           [66]   2259-8500                        

FAX                                                      :           [66]   2640-8182-4         

E-MAIL  ADDRESS                               :           admin@connellthai.com            

REGISTRATION  ADDRESS                  :           SAME  AS  BUSINESS  ADDRESS      

ESTABLISHED                                     :           1981    

REGISTRATION  NO.                            :           0100524000726

TAX  ID  NO.                                         :           3104002710

CAPITAL REGISTERED                         :           -   

CAPITAL PAID-UP                                 :           - 

FISCAL YEAR CLOSING DATE              :           DECEMBER  31           

LEGAL  STATUS                                   :           FOREIGN  BRANCH

EXECUTIVE                                          :           MR.  CHADD  HERMANN,  GERMAN

                                                                                    GENERAL  MANAGER 

NO.  OF  STAFF                                    :           62

LINES  OF  BUSINESS                          :           TRADING  COMPANY   IMPORTER,  DISTRIBUTOR  AND  

EXPORTER

                       

 

CORPORATE  PROFILE

 

OPERATING  TREND                            :           STABLE                       

PRESENT  SITUATION                          :           OPERATING  NORMALLY                     

REPUTATION                                        :           GOOD  WITH  NORMAL  BUSINESS  ENGAGEMENT    

MANAGEMENT  STANDARD                 :           MANAGEMENT  WITH  FAIR  PERFORMANCE              

 

 

HISTORY

 

The  subject  was  established  on January 11, 1981  as  a  Thailand  branch  of  Connell Bros.  Co., Ltd.,  in  U.S.A.  It  was  founded  in  Seattle,  Washington  in  1895  by  brothers Morris  and  John  Connell  as  a domestic  brokerage.  There  are  international  offices  in  Shianghai,  Manila  and  Thailand.  It  currently  employs  62  staff.

 

The  subject’s  registration  address  was  9th Flr.,  Diethelm  Tower  B.  Bldg.,  93/1  Wireless  Rd.,  Lumpini,  Pathumwan,  Bangkok  10330, and  it  was  the  company’s operation  address. 

 

In  2007,  the  operation  address  was  relocated  to  18th  Floor,  BB  Building,  54  Sukhumvit  21 [Asoke] Rd.,  Klongtoeynua,  Wattana,  Bangkok  10110,  and  this  is  also  the  subject’s  current  registration  address.

 

MANAGEMENT

 

Mr.  Chadd  Hermann  is  General  Manager.

He  is  German  nationality.

 

Mrs.  Monsiri  Ammartmanee  is  the  Administration  Manager.

She  is  Thai  nationality.

 

Ms.  Arunee  Singhavorn  is  the  Customer  Services  Manager.

She  is  Thai  nationality.

 

Ms.  Pornthip  Suwan-ampai  is  the  Products  Manager.

She  is  Thai  nationality.

 

Ms.  Khemwika  Damapong  is  the  Business  Unit  Manager.

She  is  Thai  nationality.

 

Mr. Tosaporn  Sae-ang  is  the  Sales  Division  Manager.

He  is  Thai  nationality.

 

Ms.  Ratcharee  Jaruwuthipong  is  the  Division  Manager [Construction/Adhesive  Ceramic  Chemical].

She  is  Thai  nationality.

 

BUSINESS  OPERATIONS

 

The subject is an international trading company as the followings: 

 

Imports  and  distributes  of  specialty  chemicals  for  coating and  ink,  plastics  and  rubber,  personal  and  household  care,  food  ingredients, pharmaceutical  and  life  sciences,  paper,  construction,  adhesive,  plastics,  rubber  and  metal  work.

 

Exports of canned goods, commodity plastics and chemical products.                

 

PURCHASE

 

The  products  are  purchased  from  both  local  and  overseas  suppliers   in  Unites States of America, France, Netherlands,  Denmark, Germany,  Singapore,  Malaysia, Republic of China,  Taiwan,  Japan,  India,  Austria,  Norway,  Indonesia  and  Italy.

 

MAJOR  SUPPLIERS

 

Lockhart  Chemical  Company                            :  United  States  of  America

Columbian  Chemicals  Co.,  Ltd.                       :  United  States  of  America

J.M.  Huber  Corporation                                   :  United  States  of  America

Takehar  Chemical                                             :  Japan

ICC  Industries  Inc.                                           :  United  States  of  America

Danisco  A/S                                                    :  Denmark

Kamin  LLC                                                       :  United  States  o  America

CFF                                                                  :  Germany

Prayon  S.A.                                                     :  France

PMC  Specialties  Group  Inc.                            :  United  States  of  America

Rohm  and  Hass   Company                             :  United  States  of  America

Ballantyne  Spa.                                                :  Italy

Dow  Chemicals  Company                                :  U.S.A.

BASF  [Thai]  Co.,  Ltd.                                     :  Thailand

Kalsec  Inc.                                                       :  U.S.A.

MGP  Ingredients  Inc.                                       :  U.S.A.

Medolla  Italia  S.r.L.                                          :  Italy

Ybbstaler  Fruit  Austria  GmbH.                         :  Austria

Nordox  AS.                                                      :  Norway

Bergstrom  Nutrition  Inc.                                   :  U.S.A.

Nyco  Minerals  Inc.                                           :  U.S.A.

 

The  subject  has  over  100  suppliers  from  both  domestic  and  overseas.


  SALES 

 

The  products  are  sold  locally  to  wholesalers,   manufacturers,  Thai  Government  and 

end-users,  as  well  as  exporting  to  United  States  of  America,  Canada,  India,  Taiwan,  and  the  country  in  Africa  and  Europe.

 

MAJOR  CUSTOMER

 

Swan  Industries [Thailand]  Ltd. :  Thailand

 

SUBSIDIARY  AND  AFFILIATED  COMPANY

 

The  subject  is  not  found to  have  any  subsidiary  or  affiliated  company  here  in  Thailand.

 

LITIGATION

 

Bankruptcy  and  Receivership

 

There  are  no  litigation  on  bankruptcy  and  receivership  cases  filed  against  the  subject  found  at  Legal  Execution  Department  for  the  past  five  years.

 

Others

 

There  are  no  legal  suits  filed  against  the  subject  according  to  the  past  two  years.

 

CREDIT  

 

Sales  are  by  cash  or  on  the  credits  term  of  30-60  days.

Local  bills  are  paid  by  cash  or  on  the  credits  term  of  30-60  days.

Imports  are  by  L/C  on  the  credit  term  of  120  days  or  T/T.

Exports  are  against  T/T.

 

BANKING

 

Bangkok  Bank  Public  Co.,  Ltd.          

  [Head  Office :  333  Silom  Rd.,  Silom,  Bangrak,  Bangkok]

 

The  Siam  Commercial  Bank  Public  Co., Ltd.

 [Head  Office : 9  Ratchadapisek  Rd.,  Ladyao,  Jatujak,  Bangkok]

 

EMPLOYMENT

 

The  subject  currently  employs  62  staff.  [office  and  sales  staff]

 

LOCATION  DETAILS

 

The  premise  is  rented  for administrative  office at  the  heading  address.  Premise  is  located  in  commercial  area.

 

Warehouse  is  located  at 171  Moo  17,  Bangna-Trad  Rd.,  Bangsaothong, 

Samutprakarn  10540.

 

COMMENT

 

The  subject  is  an  importer,  distributor  and  exporter of  various  products  from  food  to  industrial  goods. The  subject’s  operating  performance  in  2013  was  moderately  fair. 

 

With  over  30  years  operation,  it  has  grown  to  become  one  of  Thailand’s   leading 

distributors  of  industrial  chemicals  and  consumer  goods.  Strong  relationship  with

international  manufacturers  as  well  as  technical  support  on  application  development 

makes  it  a  reliable  source  and  supplier  of  high  quality  products.

 

Despite  economic  slowdown,  subject  is  able  to  maintain  a  solid  business.

 

FINANCIAL  INFORMATION

 

As  the subject  was  registered  in  Thailand as  a  foreign  branch,  there  is  no  list  of 

shareholders  and  financial  information  available.  Registration  of   the company  has  been 

done  in  U.S.A.

 

NAME  OF  AUDITOR  &  CERTIFIED  PUBLIC  ACCOUNTANT  NO. :

 

Mr.  Prasit  Yuangsrikul  No.  4174

 

BALANCE SHEET [BAHT]

 

 

The  latest  financial  figures  published for  December  31,  2013,  2012  &  2011  were :

          

ASSETS

                                                                                                 

Current Assets

2013

2012

2011

 

 

 

 

Cash  and Cash Equivalents     

17,506,659

44,649,727

28,210,821

Trade  Accounts  &  Other  Receivable              

397,756,885

393,224,922

354,272,577

Inventories                 

310,570,251

281,679,961

248,752,292

Other  Current  Assets                  

2,187,923

427,271

2,148,950

 

 

 

 

Total  Current  Assets                 

728,021,718

719,981,881

633,384,640

 

Fixed  Assets

 

146,413,411

 

139,039,004

 

134,978,569

Intangible  Assets

823,777

798,072

849,513

Deposit                         

6,996,627

7,359,132

6,165,027

 

Total  Assets                  

 

882,255,533

 

867,178,089

 

775,377,749

 

 

LIABILITIES  &  SHAREHOLDERS'  EQUITY [BAHT]

 

 

Current Liabilities

2013

2012

2011

 

 

 

 

Short-term Loan from Financial

  Institution 

 

80,000,000

 

205,000,000

 

160,500,000

Trade  Accounts  & Other  Payable

244,274,095

192,472,171

226,907,379

Current Portion  of  Loan  from 

   Related Company

 

-

 

-

 

40,000,000

Accrued  Income Tax

8,922,539

15,845,496

23,603,900

Current  Portion of  Finance Lease

  Contract  Liabilities

 

432,823

 

401,229

 

-

Others  Current  Liabilities

2,115,687

4,801,639

1,568,504

 

 

 

 

Total Current Liabilities

335,745,144

418,520,535

452,579,783

 

Finance Lease  Contract  Liabilities

 

1,749,058

 

2,181,881

 

-

Employees  Benefit  Obligation

2,738,405

2,265,200

3,212,682

 

Total  Liabilities

 

340,232,607

 

422,967,616

 

455,792,465

 

 

 

 

Head  Office  Accounts

 

 

 

   Retained  Earning  of  Branch

542,022,926

444,210,473

319,585,284

 

Total Shareholders' Equity

 

542,022,926

 

444,210,473

 

319,585,284

 

Total  Liabilities  &

   Head  Office’s  Accounts

 

 

882,255,533

 

 

867,178,089

 

 

775,377,749

                                         

PROFIT  &  LOSS  ACCOUNT

 

Revenue

2013

2012

2011

 

 

 

 

Sales  Income                                        

1,826,467,893

1,856,644,658

1,724,622,830

Other  Income

20,748,513

31,846,398

28,352,223

 

Total  Revenues             

 

1,847,216,406

 

1,888,491,056

 

1,752,975,053

 

Expenses

 

 

 

 

 

 

 

Cost  of   Goods  Sold               

1,486,844,307

1,512,236,184

1,399,455,291

Selling  Expenses

94,119,904

80,217,068

77,094,078

Administrative  Expenses

138,516,261

125,239,721

101,005,356

 

Total Expenses              

 

1,719,480,472

 

1,717,692,973

 

1,577,554,725

 

 

 

 

Profit  before  Financial  Cost

   & Income Tax

 

127,735,934

 

170,798,083

 

175,420,328

Financial  Cost - Interest  Paid

[4,916,661]

[9,041,295]

[9,524,644]

 

 

 

 

Profit  before  Income Tax

122,819,273

161,756,788

165,895,684

Income  Tax

[25,006,820]

[37,131,599]

[51,148,784]

 

Net  Profit / [Loss]

 

97,812,453

 

124,625,189

 

114,746,900

 

 

FINANCIAL  ANALYSIS

 

ITEM

UNIT

2013

2012

2011

 

 

 

 

 

LIQUIDITY RATIO

 

 

 

 

CURRENT RATIO

TIMES

2.17

1.72

1.40

QUICK RATIO

TIMES

1.24

1.05

0.85

 

 

 

 

 

ACTIVITY RATIO

 

 

 

 

FIXED ASSETS TURNOVER

TIMES

12.47

13.35

12.78

TOTAL ASSETS TURNOVER

TIMES

2.07

2.14

2.22

INVENTORY CONVERSION PERIOD

DAYS

76.24

67.99

64.88

INVENTORY TURNOVER

TIMES

4.79

5.37

5.63

RECEIVABLES CONVERSION PERIOD

DAYS

79.49

77.30

74.98

RECEIVABLES TURNOVER

TIMES

4.59

4.72

4.87

PAYABLES CONVERSION PERIOD

DAYS

59.97

46.46

59.18

CASH CONVERSION CYCLE

DAYS

95.76

98.84

80.68

 

 

 

 

 

PROFITABILITY RATIO

 

 

 

 

COST OF GOODS SOLD

%

81.41

81.45

81.15

SELLING & ADMINISTRATION

%

12.74

11.07

10.33

INTEREST

%

0.27

0.49

0.55

GROSS PROFIT MARGIN

%

19.73

20.27

20.50

NET PROFIT MARGIN BEFORE EX. ITEM

%

6.99

9.20

10.17

NET PROFIT MARGIN

%

5.36

6.71

6.65

RETURN ON EQUITY

%

18.05

28.06

35.90

RETURN ON ASSET

%

11.09

14.37

14.80

EARNING PER SHARE

BAHT

-

-

-

 

 

 

 

 

LEVERAGE RATIO

 

 

 

 

DEBT RATIO

TIMES

0.39

0.49

0.59

DEBT TO EQUITY RATIO

TIMES

0.63

0.95

1.43

TIME INTEREST EARNED

TIMES

25.98

18.89

18.42

 

 

 

 

 

ANNUAL GROWTH

 

 

 

 

SALES GROWTH

%

(1.63)

7.66

 

OPERATING PROFIT

%

(25.21)

(2.63)

 

NET PROFIT

%

(21.51)

8.61

 

FIXED ASSETS

%

5.30

3.01

 

TOTAL ASSETS

%

1.74

11.84

 

 

 

ANNUAL GROWTH : ACCEPTABLE

 

An annual sales growth is -1.63%. Turnover has decreased from THB 1,856,644,658.00 in 2012 to THB 1,826,467,893.00 in 2013. While net profit has decreased from THB 124,625,189.00 in 2012 to THB 97,812,453.00 in 2013. And total assets has increased from THB 867,178,089.00 in 2012 to THB 882,255,533.00 in 2013.                    

                       

PROFITABILITY : SATISFACTORY

PROFITABILITY RATIO

 

Gross Profit Margin

19.73

Deteriorated

Industrial Average

127.68

Net Profit Margin

5.36

Deteriorated

Industrial Average

50.03

Return on Assets

11.09

Impressive

Industrial Average

7.91

Return on Equity

18.05

Impressive

Industrial Average

13.58

 

Gross Profit Margin used to assess a firm's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold. Gross profit margin serves as the source for paying additional expenses and future savings. The company's figure is 19.73%. When compared with the industry average, the ratio of the company was lower. This indicated that company may have problems with control over its costs.

 

Net Profit Margin is the indicator of the company's efficiency in that net profit takes into consideration all expenses of the company. A low profit margin indicates a low margin of safety, higher risk that a decline in sales will erase profits and result in a net loss. The company's figure is 5.36%. When compared with the industry average, the ratio of the company was lower.

 

Return on Assets measures how efficiently profits are being generated from the assets employed in the business when compared with the ratios of firms in a similar business. A low ratio in comparison with industry averages indicates an inefficient use of business assets. Return on Assets ratio is 11.09%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient profit  in a dominant position within its industry.

 

Return on Equity indicates how profitable a company is by comparing its net income to its average shareholders' equity, ROE measures how much the shareholders earned for their investment in the company. Return on Equity ratio is 18.05%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient profit  in a dominant position within its industry.

 

Trend of the average competitors in the same industry for last 5 years

Return on Assets                       Uptrend

Return on Equity                       Downtrend

 

LIQUIDITY : ACCEPTABLE

 

 

LIQUIDITY RATIO

 

Current Ratio

2.17

Impressive

Industrial Average

1.10

Quick Ratio

1.24

 

 

 

Cash Conversion Cycle

95.76

 

 

 

 

The Current Ratio is to ascertain whether a company's short-term assets are readily available to pay off its short-term liabilities. The company's figure is 2.17 times in 2013, increased from 1.72 times, then it is generally considered to have good short-term financial strength. When compared with the industry average, the ratio of the company was higher, indicated that company was an efficient operator in a dominant position within its industry.

 

The Quick Ratio is a liquidity indicator that further refines the current ratio by measuring the amount of the most liquid current assets there are to cover current liabilities. The company's figure is 1.24 times in 2013, increased from 1.05 times, although excluding inventory so the company still have good short-term financial strength.

 

The Cash Conversion Cycle measures the number of days a company's cash is tied up in the production and sales process of its operations and the benefit from payment terms from its creditors. It meant the company could survive when no cash inflow was received from sale for 96 days.

 

Trend of the average competitors in the same industry for last 5 years

Current Ratio                 Uptrend

 

LEVERAGE : EXCELLENT

 

 

LEVERAGE RATIO

 

Debt Ratio

0.39

Impressive

Industrial Average

0.43

Debt to Equity Ratio

0.63

Impressive

Industrial Average

0.77

Times Interest Earned

25.98

Impressive

Industrial Average

-

 

Debt to Equity Ratio a measurement of how much suppliers, lenders, creditors and obligors have committed to the company versus what the shareholders have committed. A lower the percentage means that the company is using less leverage and has a stronger equity position.

 

Times Interest Earned measuring a company's ability to meet its debt obligations. Ratio is 25.99 higher than 1, so the company can pay interest expenses on outstanding debt.

 

Debt Ratio shows the proportion of a company's assets which are financed through debt. The company's figure is 0.39 less than 0.5, most of the company's assets are financed through equity.

 

Trend of the average competitors in the same industry for last 5 years

Debt Ratio                                Stable

Times Interest Earned                Stable

 

ACTIVITY : EXCELLENT

 

ACTIVITY RATIO

 

Fixed Assets Turnover

12.47

Impressive

Industrial Average

-

Total Assets Turnover

2.07

Impressive

Industrial Average

0.16

Inventory Conversion Period

76.24

 

 

 

Inventory Turnover

4.79

Impressive

Industrial Average

0.78

Receivables Conversion Period

79.49

 

 

 

Receivables Turnover

4.59

Impressive

Industrial Average

1.06

Payables Conversion Period

59.97

 

 

 

 

The company's Account Receivable Ratio is calculated as 4.59 and 4.72 in 2013 and 2012 respectively. This ratio measures the efficiency of the company in managing its trade debtors to generate revenue. A lower ratio may indicate over extension and collection problems. Conversely, a higher ratio may indicate an overtly stringent policy. In this case, the company's A/R ratio in 2013 decreased from 2012. This would suggest the company had deteriorated in the management of its debt collections.

 

Inventory Turnover in Days Ratio indicates the liquidity of inventory. It estimates the number of days that it will take to sell the current inventory. Inventory is particularly sensitive to change in business activities. The inventory turnover in days has increased from 68 days at the end of 2012 to 76 days at the end of 2013. This represents a negative trend. And Inventory turnover has decreased from 5.37 times in year 2012 to 4.79 times in year 2013.

 

The company's Total Asset Turnover is calculated as 2.07 times and 2.14 times in 2013 and 2012 respectively. This ratio is determined by dividing total assets into total sales turnover. The ratio measures the activity of the assets and the ability of the firm to generate sales through the use of the assets.

 

Trend of the average competitors in the same industry for last 5 years

Fixed Assets Turnover   Stable

Total Assets Turnover                Downtrend

Inventory Turnover                     Downtrend

Receivables Turnover                Downtrend

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.45

UK Pound

1

Rs.98.88

Euro

1

Rs.77.62

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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

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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.