MIRA
INFORM REPORT
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Report Date : |
03.02.2014 |
IDENTIFICATION DETAILS
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Name : |
CHINA NATIONAL COTTON GROUP CORP. |
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Registered Office : |
11-12/F Section B, Global Finance News Center, No. 1A Xuanwumenwai Street, Xicheng District, Beijing 100052 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
23.10.1993 |
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Com. Reg. No.: |
100000000015193 |
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Legal Form : |
One-Person Limited
Liabilities Company |
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Line of Business : |
Subject includes processing and selling cotton, hemp, linter, by
products and cotton yarn; processing and selling grains and animal products;
technology developing, manufacturing and selling agricultural machinery,
common machinery, meters, electronic products; processing and selling
garments and textile products; |
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No. of Employees : |
420 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
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, creation of a diversified banking system, development of stock markets, rapid growth of the private sector, 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 it considers important to "economic security," explicitly looking to foster globally competitive national champions. After keeping its currency tightly linked to the US dollar for years, in July 2005 China revalued its currency by 2.1% against the US dollar and 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. 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 2012 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 demand; (b) sustaining adequate job growth for tens of millions of migrants and new entrants to the work force; (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. In 2010-11, China faced high inflation resulting largely from its credit-fueled stimulus program. Some tightening measures appear to have controlled inflation, but GDP growth consequently slowed to under 8% for 2012. An economic slowdown in Europe contributed to China's, and is expected to further drag Chinese growth in 2013. Debt overhang from the stimulus program, particularly among local governments, and a property price bubble challenge policy makers currently. The government's 12th Five-Year Plan, adopted in March 2011, emphasizes continued economic reforms and the need to increase domestic consumption in order to make the economy less dependent on exports in the future. However, China has made only marginal progress toward these rebalancing goals
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Source
: CIA |
Company name and address
CHINA NATIONAL COTTON
GROUP CORP.
11-12/F SECTION B, GLOBAL FINANCE NEWS CENTER, NO.
TEL: 86 (0) 10-59338189/59338131
FAX: 86 (0) 10-59338030
EXECUTIVE SUMMARY
Date of Registration : OCTOBER 23, 1993
REGISTRATION NO. : 100000000015193
LEGAL FORM : one-person Limited liabilities company
CHIEF EXECUTIVE : shi jinkai (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 130,000,000
staff : 420
BUSINESS CATEGORY :
TRADING
Revenue : CNY 17,638,000,000 (AS OF DEC. 31, 2012)
EQUITIES : CNY 817,000,000 (AS OF DEC. 31, 2012)
WEBSITE : www.chncc.com
E-MAIL : master@chncc.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE : CNY 6.05 = USD 1
Adopted abbreviations
(as follows)
SC - Subject Company (the company inquired by you)
N/A – Not available
CNY – China Yuan Ren Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect of its operational trend & general reputation
Operational Trend:- General Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not known
Not known Not yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
SC was established as a limited liabilities company of PRC on October 23, 1993. However, SC changed to present legal form, and was registered as one-person limited liabilities company of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 100000000015193.
SC’s Organization
Code Certificate No.: 10001519-7
SC’s registered
capital: CNY 130,000,000
SC’s paid-in
capital: CNY 130,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
|
Registered Capital |
CNY 40,000,000 |
CNY 129,740,000 |
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|
Legal Representative |
Peng Fukuan |
Sun Zhixin |
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Registered Capital |
CNY 129,740,000 |
CNY 130,000,000 |
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Legal Representative |
Sun Zhixin |
Lv Guangbin |
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Company Name |
China National Cotton Corp. |
China National Cotton Group Corp. |
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Legal Representative |
Lv Guangbin |
Shi Jinkai |
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-- |
Registration No. |
1000001001519 |
100000000015193 |
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Legal Form |
Limited Liabilities Company |
One-Person Limited Liabilities Company |
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Shareholder (s) (% of Shareholding) |
China Co-Op Group Co., Ltd. 95% China Cotton Industries, Ltd. 5% |
China Co-Op Group Co., Ltd. 100% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
China Co-Op Group Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Shi Jinkai |
|
Deputy General Manager |
Wang Wanxiang |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
China Co-Op Group Co., Ltd. 100
China Co-Op Group Co., Ltd.
=========================
Registration No.: 100000000042469
Legal Form:
One-person Limited Liability Company
Chief Executive: Gu Guoxin (Legal Representative)
Registered Capital: CNY 4,362,600,000
MANAGEMENT
Shi Jinkai , Legal
Representative, Chairman and General Manager
-------------------------------------------------------------------------------------------------
Gender: M
Age: 51
ID# 110108196311105416
Qualification: University
Working experience (s):
From 2000 to 2007, worked in SC as deputy general manager
From 2008 to present, working in SC as legal representative, chairman and general manager
Wang Wanxiang ,
Deputy General Manager
--------------------------------------------------------------------
Gender: M
Age:
Qualification: University
Working experience (s):
At present, working in SC as deputy general manager
BUSINESS OPERATION
SC’s registered business scope includes processing and selling cotton, hemp, linter, by products and cotton yarn; processing and selling grains and animal products; technology developing, manufacturing and selling agricultural machinery, common machinery, meters, electronic products; processing and selling garments and textile products; selling metal materials, rubber, leather products, wood, steel, metal products, auto parts, chemicals, chemical dangerous products (excluding dangerous chemicals); real estate development; warehousing service; exhibition for self-developed, produced, and processed products; import and export business; information consultant service related to the above business; real estate consulting service; technology development, technology consulting, technology services, technology transferring, technology training; engineering technology designing and construction consultation; house rental and property management.
SC is mainly engaged in selling cotton and related products.
SC’s products mainly include: cotton, flax and related products, etc.
SC sources its materials 80% from domestic market, and 20% from overseas market, mainly India. SC sells 75% of its products in domestic market, and 25% 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 Check, T/T, L/C and Credit of 30-60 days.
*Major Customer:
=============
Libero Company (Brazil)
Olam International (Singapore)
Staff & Office:
--------------------------
SC is known to have approx. 420 staff at present.
SC owns an area as its operating office & factory of approx. 2,000 sq. meters at the heading address.
RELATED COMPANY
SC is known to have
11 subsidiaries and 3 branches at present, and the following are the major
ones.
China National Cotton Group Langfang Logistics Co., Ltd.
China National Cotton Group Shanghai Cotton Co., Ltd.
China National Cotton Group Hebei Cotton Co., Ltd.
China National Cotton Group (Qingdao) Cotton Co., Ltd.
Beijing China National Cotton Huatai International Trading Co., Ltd.
China National Cotton Group Tianjin Branch
Etc.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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.
BANKING
Basic Bank:
Agricultural Development Bank of China Head Office
AC#: 20399990010100000015391
FINANCIALS
Balance Sheet
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Unit: CNY’000 |
As of Dec. 31, 2010 |
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919,967 |
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Notes receivable |
244,631 |
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Accounts receivable |
95 |
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Advances to suppliers |
1,320,468 |
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Other receivable |
454,425 |
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Inventory |
797,615 |
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Non-current assets within one year |
0 |
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Other current assets |
0 |
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------------------ |
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Current assets |
3,737,201 |
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Fixed assets |
187,266 |
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Construction in progress |
120 |
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Intangible assets |
5,869 |
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Long-term investment |
238,611 |
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Deferred income tax assets |
0 |
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Other non-current assets |
2,964 |
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------------------ |
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Total assets |
4,172,031 |
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============= |
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Short-term loans |
1,755,900 |
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Notes payable |
0 |
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Accounts payable |
166,344 |
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Welfare payable |
35,238 |
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Tax payable |
-31,787 |
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Advances from clients |
1,272,521 |
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Salaries payable |
0 |
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Other payable |
40,420 |
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Other current liabilities |
15,396 |
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------------------ |
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Current liabilities |
3,254,032 |
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Non-current liabilities |
544,653 |
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------------------ |
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Total liabilities |
3,798,685 |
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Equities |
373,346 |
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------------------ |
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Total liabilities & equities |
4,172,031 |
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Income Statement
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Unit: CNY’000 |
As of Dec. 31, 2010 |
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Revenue |
4,144,028 |
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Cost of sales |
3,959,904 |
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Taxes and surcharges |
1,183 |
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Sales expense |
79,158 |
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Management expense |
45,955 |
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Finance expense |
18,560 |
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Investment income |
-13,918 |
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Non-operating income |
27,114 |
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Non-operating expense |
947 |
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Profit before tax |
48,521 |
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Less: profit tax |
19,200 |
|
29,321 |
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
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Total assets |
7,396,000 |
7,629,000 |
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------------- |
------------- |
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Total liabilities |
6,750,000 |
6,812,000 |
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Equities |
646,000 |
817,000 |
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|
------------- |
------------- |
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Revenue |
13,542,000 |
17,638,000 |
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Profits |
115,000 |
119,000 |
Important Ratios
=============
|
|
As of Dec. 31, 2010 |
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
1.15 |
-- |
-- |
|
*Quick ratio |
0.90 |
-- |
-- |
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*Liabilities to assets |
0.91 |
0.91 |
0.89 |
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*Net profit margin (%) |
0.71 |
0.85 |
0.67 |
|
*Return on total assets (%) |
0.70 |
1.55 |
1.56 |
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*Inventory / Revenue ×365 |
71 days |
-- |
-- |
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*Accounts receivable/ Revenue ×365 |
1 day |
-- |
-- |
|
*Revenue/Total assets |
0.99 |
1.83 |
2.31 |
|
*Cost of sales / Revenue |
0.96 |
-- |
-- |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of goods sold is fairly high, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level in 2010.
SC’s quick ratio is maintained in a normal level in 2010.
The inventory of SC is maintained in an average level in 2010.
The accounts receivable of SC is maintained in an average level in 2010.
The short-term loan of SC appears large in 2010.
SC’s revenue is in an average level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of SC is fairly high.
The risk for SC to go bankrupt is low.
Overall financial condition of the SC: Stable.
CONCLUSIONS
SC is considered large-sized in its line with stable financial conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.48 |
|
|
1 |
Rs.102.95 |
|
Euro |
1 |
Rs.84.60 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
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>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 |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.