MIRA INFORM REPORT

 

 

Report Date :

08.02.2014

 

IDENTIFICATION DETAILS

 

Name :

TUNG HO TEXTILE CO., LTD.

 

 

Registered Office :

No.227, Industrial Rd., Madou Dist., Tainan City 721

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

11.09.1959

 

 

Com. Reg. No.:

73141105

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sale of textile materials

 

 

No. of Employees :

300

 

 

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, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Taiwan

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

TAIWAN - ECONOMIC OVERVIEW

 

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. In 2009, Taiwan's GDP contracted 1.8%, due primarily to a 13.1% year-on-year decline in exports. In 2010 GDP grew 10.7%, as exports returned to the level of previous years, and in 2011, grew 4.0%. In 2012, however, growth fell to 1.3%, because of softening global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but except for the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, so far Taiwan has been excluded from this greater economic integration in part because of its diplomatic status. Negotiations continue on such follow-on components of ECFA regarding trade in goods and services. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other key trade partners, which Taiwan subsequently launched with Singapore and New Zealand. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 11.2% of the island's total population as of 2012. The island runs a large trade surplus largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind China, Japan, Saudi Arabia, and Russia. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from the mainland's financial firms and institutional investors, and providing new opportunities for Taiwan financial firms to operate in China. In August 2012, Taiwan Central Bank signed a memorandum of understanding on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which could help develop Taiwan into a local RMB hub. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

 

Source : CIA

 


Contact Points

 

Company Name:

TUNG HO TEXTILE CO., LTD.

Former Name:

Tung Ho Spinning Weaving & Dyeing Co., Ltd.

Supplied Name:

TUNG HO TEXTILE CO., LTD.

Trading Address:

No.227, Industrial Rd., Madou Dist., Tainan City 721, Taiwan (R.O.C.)

Supplied Address:

NO.227, INDUSTRIAL ROAD, MA-DUO TOWN, TAINAN HSING, TAIWAN R.O.C,

Telephone Number:

+886-6-570-3211

Fax Number:

+886-6-570-3382

E-mail:

cch@tungho.com.tw

Website:

www.tungho.com.tw

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

Tung Ho Textile Co., Ltd.

Registered Address:

No.227, Industrial Rd., Madou Dist., Tainan City 721, Taiwan (R.O.C.)

Date of Foundation:

1959-9-11

Registration Number:

73141105

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 3,600,000,000 (USD 122,400,000)

(As of 2014.01, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 2,200,000,000 (USD 74,800,000)

Legal Representatives:

Shuying Cai

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sale of textile materials

Staff:

About 300 Employees

Listed at Stock Exchange:

Yes; Stock Code: 1414

Date of Last Annual Return:

2013-6-27

 

 

History

 

Subject was incorporated on 1959-9-11 with registered number 73141105 as Joint Stock Company in Taiwan.

 

Subject listed on Taiwan Stock Exchange on 1976-2-2.

 

Change of Name

Former Chinese Name

東和紡織印染股份有限公司

Current Chinese Name

東和紡織股份有限公司

 

Former English Name

Tung Ho Spinning Weaving & Dyeing Co., Ltd.

Current English Name

Tung Ho Textile Co., Ltd.

 

 

Shareholders

 

Name

Subscription Shares

Yu Shun Investment Development Co., Ltd. (Literal Translation)

28,000,626       

 

Rukang Hu

 

578

 

Ho Yuen Trading Corporation

1,520,000

 

The information above is that of subject’s major shareholders.

 

 

Shareholder Information

 

1

Registered Name:

Yu Shun Investment Development Co., Ltd. (Literal Translation)

Registered Address:

13F., No.376, Sec. 4, Ren-Ai Rd., Da-An Dist., Taipei City 10693, Taiwan (R.O.C.)

Date of Foundation:

1990-5-16

Registration Number:

23641203

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 870,800,000 (USD 29,607,200)

(As of 2014.01, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 870,800,000 (USD 29,607,200)

Legal Representatives:

Shuying Cai

Legal Form:

Joint Stock Company

Listed at Stock Exchange:

No

Date of Last Annual Return:

2013-8-19

2

Registered Name:

Ho Yuen Trading Corporation

Registered Address:

13F., No.376, Sec. 4, Ren-Ai Rd., Da-An Dist., Taipei City 10693, Taiwan (R.O.C.)

Date of Foundation:

2010-6-15

Registration Number:

25138262

Registry:

Taipei City Government

Registered Capital:

NTD 1,000,000 (USD 34,000)

(As of 2014.01, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 1,000,000 (USD 34,000)

Legal Representatives:

Ziyang Chen

Legal Form:

Joint Stock Company

Listed at Stock Exchange:

No

Date of Last Annual Return:

2013-6-10

 

 

Subsidiaries & Branches

 

Factory

Name:

Madou Factory

Address:

No.227, Industrial Rd., Madou Dist., Tainan City 721, Taiwan (R.O.C.)

Date of Foundation:

1990-1-16

Date of Registration:

1992-4-15

Factory Registration Number:

99657988

Factory Manager:

Shuying Cai

Status:

In Production

Date of Last Annual Return:

2010-7-5

Major Products:

111 spinning

 

Office

Name:

Taipei Office

Address:

13F., No.376, Sec. 4, Ren’ai Rd., Da’an Dist., Taipei City 106, Taiwan (R.O.C.)

Tel:

+886-2-2700-1840

Fax:

+886-2-2706-0967

 

 

Personnel Information

 

Core Management

 

Directors

1

Name

Shuying Cai

Position

Board Chairman/ Manager

Date of Appointment

2011-5-11

2

Name

Furen Cai

Position

Deputy Chairman

3

Name

Zhiwen Zheng

Position

Director

4

Name

Ruiqi Huang

Position

Director

5

Name

Rukang Hu

Position

Director

7

Name

Chenggeng Chen

Position

Supervisor

7

Name

Jinfa Huang

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 300 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No.227, Industrial Rd., Madou Dist., Tainan City 721, Taiwan (R.O.C.)

 

Production Information

 

Subject is engaged in manufacturing of textile materials

Subject has a factory (land area 61,000 square meters; building area 20,000 square meters) in Tainan City, Taiwan for production.

 


Purchase Information

 

The registered activities of subject:

Business Code

Details

--

Printing, dyeing and processing of natural fiber

--

Printing, dyeing and processing of textile fiber

--

Manufacturing and processing of polyester cotton

--

Import and export of related raw materials

--

Import and export business

C301010

Spinning industry

C802020

Manufacturing and sale of artificial fiber

A102040

Leisure agriculture

A401010

Ranching industry

H701020

Developing and leasing of industrial factory building

H701040

Developing of specific professional area

F209030

Retail of toy and recreational goods

F203010

Retail of food and beverage

F203020

Retail of alcohol and tobacco

F501060

Restaurant industry

F501030

Beverage store

F501050

Hotel industry

F601010

Intellectual property business

I102010

Investment business

J701020

Amusement park

J601010

Literature and fine arts exhibition

J801030

Athletics and leisure stadium

JB01010

Exhibition service

G801010

Warehouse industry

H703010

Leasing plant

H703020

Leasing warehouse

H703030

Leasing office building

H703040

Leasing booth

H703050

Leasing meeting room

H701010

Developing residence and building

H701050

Invest in public construction

IZ06010

Cargo handling and packaging business

ZZ99999

Besides licensed business, all other business items those are not banned or restricted.

 

The raw materials for production are mostly purchased in domestic market.

It is introduced that some production facilities are imported from Southeast Asia

 

Sales Information

 

Subject is engaged in sale of textile materials

The major products sold by subject include pure cotton, blended yarn and slub yarn

The products sold by subject are applied to manufacturing of garment, garment, curtain, upholstery and bed sheet

Subject’s sales regions include domestic market, Southeast Asia, Europe and America

 


Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Terms

Proportion

Raw materials

Cash, T/T

100%

 

Foreign Purchase

Product

Terms

Proportion

Facilities

L/C, T/T

100%

 

Sales

 

Domestic Markets

Product

Terms

Proportion

Textile

Cash, T/T

100%

 

Export

Product

Terms

Proportion

Textile

L/C, T/T

100%

 

 

Balance Sheet

 

Unit: NTD/000

 

2012-12-31

2011-12-31

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

316,291.00

208,543.00

Available-for-sale financial assets - current

127,037.00

68,300.00

Notes receivable - net

26,604.00

6,790.00

Accounts receivable - net

1,639.00

5,359.00

Other receivables

4,003.00

6,157.00

Inventories

485,780.00

556,877.00

Other prepayments

6,185.00

9,665.00

 

0.00

2,419.00

Other current assets

18,175.00

12,503.00

Current assets

985,714.00

876,613.00

Funds and Investments

 

 

Available-for-sale financial assets - non current

35,254.00

29,050.00

Financial assets carried at cost - non current

11,725.00

12,271.00

Equity investments under equity method

0.00

0.00

Investments

0.00

0.00

Other financial assets - non current

83.00

570.00

Funds and long-term investments

47,062.00

41,891.00

Fixed Assets

 

 

Cost

 

 

Land

494,712.00

494,712.00

Buildings and structures

457,318.00

457,075.00

Machinery and equipment

1,735,206.00

1,628,155.00

Transportation equipment

6,838.00

6,838.00

Office equipment

3,100.00

2,948.00

Rental assets - land

110,171.00

110,171.00

Rental assets - buildings

266,323.00

231,766.00

Rental assets - other

16,923.00

16,923.00

Other facilities

332,991.00

331,324.00

Revaluation increment

2,082,559.00

1,975,967.00

Cost and revaluation increment

5,506,141.00

5,255,879.00

Accumulated depreciation

-2,207,349.00

-2,111,839.00

Accumulated impairment - fixed assets

0.00

0.00

Construction in process and prepayment for equipments

5,594.00

58,242.00

Fixed assets

3,304,386.00

3,202,282.00

Intangible Assets

 

 

Deferred pension cost

0.00

0.00

Intangible assets

0.00

0.00

OtherAssets

 

 

Rental assets

46,076.00

46,330.00

Other assets - other

27,600.00

0.00

Other assets

73,676.00

46,330.00

Assets

4,410,838.00

4,167,116.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Short-term borrowings

266,094.00

101,290.00

Notes payable

219.00

0.00

Accounts payable

20,193.00

31,988.00

Accrued expenses

53,481.00

50,290.00

Other payables

2,455.00

2,333.00

Advance receipts

52,287.00

112,592.00

Other current liabilities

0.00

0.00

Current liabilities

394,729.00

298,493.00

Long term Liabilities

 

 

Long-term borrowings

0.00

0.00

Long-term notes and accounts payable

0.00

0.00

Long-term liabilities

0.00

0.00

Reserves

 

 

Reserve for land revaluation increment tax

638,335.00

607,993.00

Reserves

638,335.00

607,993.00

Other Liabilities

 

 

Pension reserve / accrued pension liability

105,761.00

105,841.00

Guarantee deposits received

42,658.00

44,918.00

Other liabilities

148,419.00

150,759.00

Liabilities

1,181,483.00

1,057,245.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

2,200,000.00

2,200,000.00

Capital Surplus

 

 

Capital surplus - long-term equity investments

986.00

986.00

Capital surplus

986.00

986.00

Retained Earnings

 

 

Legal reserve

24,727.00

0.00

Special reserve

104,445.00

0.00

Unappropriated retained earnings

143,514.00

247,271.00

Retained earnings

272,686.00

247,271.00

Stockholders' Equity and Other adjustment

 

 

Net loss not recognized as pension cost

-13,414.00

-15,145.00

Unrealized gains (losses) on financial instruments

-71,634.00

-89,300.00

Unrealized Revaluation Increment

840,731.00

764,480.00

 

0.00

1,579.00

Equity adjustments

755,683.00

661,614.00

Stockholders - equity

3,229,355.00

(USD 109,798,070.00)

3,109,871.00

(USD 105,735,614.00)

Number of treasury stock acquired by the company and subsidiaries (unit: share)

0.00

0.00

 

0.00

0.00

(As of 2014.01, 1 NTD = 0.0340 USD)

 

 

Profit and Loss Account

 

Unit: NTD/000

 

2012

2011

Sales

1,347,194.00

(USD 45,804,596.00)

1,230,289.00

(USD 41,829,826.00)

Sales returns

14,541.00

25,602.00

Sales discounts and allowances

3,765.00

4,006.00

Sales

1,328,888.00

1,200,681.00

Rental revenue

92,818.00

96,487.00

Rental revenue

92,818.00

96,487.00

Operating income

1,421,706.00

1,297,168.00

Cost of sales

1,270,589.00

1,071,442.00

Cost of rental

14,632.00

14,738.00

Cost of rental

14,632.00

14,738.00

Operating costs

1,285,221.00

1,086,180.00

Gross profit (loss) from operations

136,485.00

210,988.00

Selling expense

26,069.00

21,211.00

General and administrative expenses

44,298.00

50,839.00

Operating expenses

70,367.00

72,050.00

Operating income (loss)

66,118.00

138,938.00

Non-Operating Income

 

 

Interest income

251.00

410.00

Dividends

5,135.00

7,761.00

Investment income

5,135.00

7,761.00

Gains on disposal of fixed assets

1,278.00

844,457.00

Gains on sale of investments

5,597.00

0.00

Foreign exchange gains

5,214.00

0.00

Rent income

2,055.00

5,765.00

Revaluation gain on financial assets

0.00

0.00

Miscellaneous income

3,694.00

5,139.00

Non-operating revenues and gains

23,224.00

863,532.00

Non-Operating Expenses

 

 

Interest expense

2,745.00

6,544.00

Losses from long-term equity investments under the equity method

0.00

0.00

Other investment loss

0.00

0.00

Investment loss

0.00

0.00

Loss on disposal of fixed assets

10.00

7,423.00

Loss on sale of investments

0.00

3,228.00

Foreign exchange losses

0.00

5,720.00

Impairment loss on assets

369.00

0.00

Miscellaneous disbursements

475.00

4,773.00

Non-operating expenses and losses

3,599.00

27,688.00

Income from continuing operations before income tax

85,743.00

974,782.00

Income tax expense (benefit)

-5,672.00

-1,962.00

Income from continuing operations

91,415.00

976,744.00

Income (loss) from discontinued operations

0.00

205,826.00

Net income (loss)

91,415.00

(USD 3,108,110.00)

1,182,570.00

(USD 40,207,380.00)

Primary Earnings per Share

 

 

Income (loss) from continuing operations

0.42

4.44

Income (loss) from discontinued operations

0.00

0.94

Primary earnings per share

0.42

5.38

Diluted earnings per share

 

 

Income (loss) from continuing operations

0.42

4.44

Income (loss) from discontinued operations

0.00

0.94

Diluted earnings per share

0.42

5.38

(As of 2014.01, 1 NTD = 0.0340 USD)

 

Cash Flows

 

Unit: NTD/000

 

2012

2011

Cash Flows from Operating Activities - Indirect Method

 

 

Net Income (Loss)

91,415.00

1,182,570.00

Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities

 

 

Depreciation Expense

99,787.00

96,930.00

Provision (Reversal of Provision) for Bad Debts Losses

-133.00

-85.00

Loss (Gain) on Decline (Recovery) in Market Value, Scrap and Obsolescence of Inventories

-32,468.00

35,947.00

Loss (Gain) on Disposal of Property, Plant and Equipment

-1,268.00

-837,034.00

Loss (Gain) on Disposal of Investments

-5,597.00

3,226.00

Impairment Losses on Financial Asset

369.00

0.00

Loss (Gain) on Deferred Income Tax

-5,672.00

-1,962.00

Other Adjustments to Reconcile Net Income

0.00

-211,932.00

Changes in Operating Assets and Liabilities

 

 

Decrease (Increase) in Notes Receivable

-19,786.00

149,562.00

Decrease (Increase) in Accounts Receivable

3,723.00

-117.00

Decrease (Increase) in Other Receivables

2,256.00

-1,359.00

Decrease (Increase) in Inventories

103,564.00

-156,513.00

Decrease (Increase) in Other Prepayments

3,480.00

-6,697.00

Decrease (Increase) in Other Operating Assets

0.00

0.00

Increase (Decrease) in Notes Payable

219.00

-2,263.00

Increase (Decrease) in Accounts Payable

-11,795.00

13,726.00

Increase (Decrease) in Accrued Expenses

3,192.00

3,240.00

Increase (Decrease) in Other Payables

272.00

-17,648.00

Increase (Decrease) in Receipts in Advance

-94,107.00

-209,884.00

Increase (Decrease) in Accrued Pension Liabilities

1,651.00

4,408.00

Net Cash Provided by (Used in) Operating Activities

139,102.00

44,115.00

Cash Flows from Investing Activities

 

 

Acquisition of Available-for-sale Financial Assets

-88,430.00

-140,649.00

Proceeds from Disposal of Available-for-sale Financial Assets

46,753.00

138,016.00

Proceeds from Capital Reduction of Available-for-Sale Financial Assets

0.00

1.00

Capital Reduction of Financial Assets Carried at Cost

177.00

0.00

Proceeds from Disposal of  Non-current Assets Classified as Held for Sale

1,558.00

781,821.00

Purchase of Property, Plant and Equipment

-60,843.00

-224,287.00

Proceeds from Disposal of Property, Plant and Equipment

0.00

0.00

Increase (Decrease) in Receipts in Advance-Disposal of Assets

0.00

0.00

Decrease (Increase) in Refundable Deposits

487.00

4,915.00

Decrease (Increase) in Other Assets

-27,600.00

0.00

Other Investing Activities

0.00

529,632.00

Net Cash Provided by (Used in) Investing Activities

-127,898.00

1,089,449.00

Cash Flows from Financing Activities

 

 

Increase (Decrease) in Short-term Loans

164,804.00

-297,405.00

Repayment of Long-term Debt

0.00

-366,140.00

Increase (Decrease) in Guarantee Deposits Received

-2,260.00

-1,366.00

Cash Dividends Paid

-66,000.00

0.00

Other Financing Activities

0.00

-470,096.00

Net Cash Provided by (Used in) Financing Activities

96,544.00

-1,135,007.00

Net Increase (Decrease) in Cash and Cash Equivalents

107,748.00

-1,443.00

Cash and Cash Equivalents, Beginning of year

208,543.00

209,986.00

Cash and Cash Equivalents, End of year

316,291.00

208,543.00

Supplemental Cash Flow Information

 

 

Interest Paid- Excluding Capitalized Interest

2,755.00

9,201.00

Income Tax Paid

0.00

0.00

Non-cash Investing and Financing Activities

 

 

Current Portion of Long-term Liabilities

0.00

0.00

Property, Plant and Equipment Transferred to Non-current Assets Classified as Held for Sale

0.00

0.00

Other Supplemental Information

 

 

Transfer of short-term debt to liabilities associated with non-current assets held for sale

0.00

0.00

Transfer of long-term debt to liabilities associated with non-current assets held for sale

0.00

0.00

Transfer of advance receipts to liabilities associated with non-current assets held for sale

0.00

0.00

Transfer of reserve for land revaluation increment tax to liab. associated with non-C.A. held for S.

0.00

0.00

Transfer of unrealized revaluation increments to equities associated with non-C.A. held for sale

0.00

0.00

Transfer of inventories to non-current assets held for sale

0.00

0.00

Increase Property Plant Equipment

60,693.00

224,436.00

Changes Payable Equipment Purchased

150.00

-149.00

Changes Long Term Payable

0.00

0.00

Net cash provided used discontinued operations

0.00

0.00

Cash Paid Acquisition Property Plant Equipment

60,843.00

224,287.00

 

 

Bankers

 

Subject declined to disclose its bank details; from other source we cannot obtain the relevant information, either.

 

 

Public Record

 

Mortgage

 

1

Case Type:

Chattel Mortgage

Certificate No.:

058448

Debtor Name:

Tung Ho Textile Co., Ltd.

Document Number:

826518

Date of Registration:

1998-6-29

Date of Alteration:

2010-11-4

Status:

Paid off

2

Case Type:

Chattel Mortgage

Certificate No.:

086548

Debtor Name:

Tung Ho Textile Co., Ltd.

Document Number:

09505083880

Date of Registration:

2006-3-8

Date of Alteration:

2010-10-21

 


Lawsuit

 

Up to date of reporting, no existing or latent litigation of the subject has been found.

 

 

Interview Details

 

Name

Mr. Zhang

Department

Sales Department

 

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.32

UK Pound

1

Rs.101.78

Euro

1

Rs.84.68

 

 

INFORMATION DETAILS

 

Report Prepared by :

NNA

 

 

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.