|
Report Date : |
12.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
HERA INVESTMENT LLC |
|
|
|
|
Registered Office : |
Hera Business Center Building, Peace Avenue, 5th Khoroo, Gurvaljin Bridge,
Bayangol District, P .O. Box No.:
16081, Ulaanbaatar |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
21.12.2005 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Subject provides the following investment activities: -
Investment and financing -
Lease and rent of heavy machinery and equipment -
Consulting -
Sands and gravel quarry |
|
|
|
|
No. of Employees : |
23 |
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 : |
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) |
|
Mongolia |
C1 |
C1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
MONGOLIA - ECONOMIC OVERVIEW
Mongolia's extensive mineral
deposits and attendant growth in mining-sector activities have transformed
Mongolia's economy, which traditionally has been dependent on herding and agriculture.
Mongolia's copper, gold, coal, molybdenum, fluorspar, uranium, tin, and
tungsten deposits, among others, have attracted foreign direct investment.
Soviet assistance, at its height one-third of GDP, disappeared almost overnight
in 1990 and 1991 at the time of the dismantlement of the USSR. The following
decade saw Mongolia endure both deep recession, because of political inaction
and natural disasters, as well as economic growth, because of reform-embracing,
free-market economics and extensive privatization of the formerly state-run
economy. The country opened a fledgling stock exchange in 1991. Mongolia joined
the World Trade Organization in 1997 and seeks to expand its participation in
regional economic and trade regimes. Growth averaged nearly 9% per year in
2004-08 largely because of high copper prices globally and new gold production.
By late 2008, Mongolia was hit hard by the global financial crisis. Slower
global economic growth hurt the country's exports, notably copper, and slashed
government revenues. As a result, Mongolia's real economy contracted 1.3% in
2009. In early 2009, the International Monetary Fund reached a $236 million
Stand-by Arrangement with Mongolia and the country has largely emerged from the
crisis with better regulations and closer supervision. The banking sector
strengthened but weaknesses remain. In October 2009, Mongolia passed
long-awaited legislation on an investment agreement to develop the Oyu Tolgoi
mine, considered to be among the world's largest untapped copper deposits.
Recent calls by nationalist politicians to renegotiate the investment
agreement, however, have called into question the attractiveness of Mongolia as
a destination for foreign direct investment. Negotiations to develop the
massive Tavan Tolgoi coal field face similar obstacles. The economy grew by
6.4% in 2010, 17.5% in 2011, and by more than 12.3% in 2012, largely on the
strength of commodity exports to nearby countries and high government spending
domestically. Mongolia's economy, however, faces near-term economic risks from
the government's loose fiscal policies, which are contributing to high
inflation, and uncertainties in foreign demand for Mongolian exports. Trade
with China represents more than half of Mongolia's total external trade - China
receives more than 90% of Mongolia's exports. Mongolia purchases 95% of its
petroleum products and a substantial amount of electric power from Russia,
leaving it vulnerable to price increases. Due to severe winter weather in
2009-10, Mongolia lost 22% of its total livestock, and meat prices doubled.
Inflation remained higher than 10% for much of 2010-12, due in part to higher
food and fuel prices. The economic slowdown in China during 2011-2012 resulted
in fewer Mongolian exports, a widened trade gap, and decreased government
revenues, putting pressure on Mongolian fiscal policy. Remittances from
Mongolians working abroad, particularly in South Korea, are significant.
|
Source
: CIA |
HERA INVESTMENT
LLC
Building : Hera Business Center Building
Street : Peace Avenue, 5th Khoroo
Area : Gurvaljin Bridge, Bayangol District
P.O.Box No.: 16081
Town : Ulaanbaatar
Country : Mongolia
Telephone : (976
75) 752 121 / Mobile (976 99) 110 305 (Khassuuri Gankhuyag) / (976 99) 108 030
(Khassuuri Gankhuyag) / (976 99) 000 095 (Altanzull Jambal)
Fax : (976 70) 182 161 / (976 70) 182 171
E-Mail : batkhuyag@hera.mn
/ khassuuri@hera.mn / hera-investment@mobinet.mn /
gantulga.kh@hera.mn / indra@hera.mn
Shortform Name : Hera Investment
Also known as : Hera Investment XXK
Name Position
1. Khassuuri Gankhuyag President
2. Erdenebayar Tserenlkhagva Vice
President
3. Khassuuri Gantulga Chief Executive Officer
4. E. Rentsendorj Chief Production Officer
5. Altanzull Jambal Chief Financial Officer
6. Batbaatar Naidansuren General Manager
7. Ganbold Lkhamsuren Chief Business Development Officer
8. Dilger Tsetseg Chief Accountant
Total Employees : 23 (subject)
450 (group)
No complaints have been heard regarding payments from local suppliers
or banks.
We consider it is acceptable to deal with subject for LARGE amounts,
although it is normal accepted practice for international suppliers
to deal on secured terms with Mongolian importers.
Trade risk assessment : Normal
NAME : TRADE AND DEVELOPMENT BANK OF MONGOLIA
Branch : Juulnchny Gudamj 7
Town : Ulaanbaatar 210646
Telephone: (976 11) 312 362
/ 331 133
Fax : (976 11) 325 449
Acc. No. : 499079710
The company also has an account with the following banks:
1. Golomt Bank of Mongolia
Main Branch
Bodi Tower, Sukhbaatar Square
Ulaanbaatar
Telephone: (976 11) 311 530
Fax : (976 11) 312 307
Acc. No. : 21280159
2. Khan Bank of Mongolia
Peace Avenue
P.O Box-185
Ulaanbaatar
Telephone: (976 11) 457 880
Fax : (976 11) 457 880
3. Khas Bank
Sukhbaatar district
Ulaanbaatar 14200
Telephone: (976 11) 318 185
Fax : (976 11) 328 701
The following balance sheets as at 31 December 2011 showed :
31 Dec 2010 31
Dec 2011
(in TUGRIK)
ASSETS
Current
assets
Cash
and cash equivalent 700,179,320.56 477,992,298.44
Short-term
investment - -
Devaluation - -
Accounts
receivable 9,172,176,323.94 8,101,524,765.51
Allowance
for the debts
- -
Other
receivable 456,455,731.89 -
Inventory 11,201,545,297.65 12,321,699,827.42
Work
in process
- -
Prepayment 851,014,703.68 867,026,233.33
Total
current assets 22,381,371,377.72 21,768,243,124.69
Fixed
assets
Fixed
assets 1,313,616,914.53 1,510,659,451.71
Accumulated
depreciation (110,083,599.83) (377,455,186.43)
Other
fixed assets 85,194,220.91 85,194,220.91
Accumulated
depreciation
(28,371,778,77)
(36,641,003.10)
Building
under construction
- -
Accumulated
depreciation - -
Intangible
asset - -
Accumulated
depreciation - -
Investment
and other assets 2,525,626,530.00 2,781,189,183.00
Unrealized
loss on long
term
investments
- -
Total
fixed assets 3,785,982,286.84 3,962,946,666.09
TOTAL
ASSETS 26,167,353,664.56 25,731,189,790.79
LIABILITIES
AND EQUITY
LIABILITY
Current
liability
Accounts
payable 200,144,120.57 184,132,590.92
Salaries
payable
- -
Corporate
income tax 81,818,073.66 50,787,287.46
Personal
income tax payable
- -
VAT
payable 20,130,375.08 85,432,072.65
Other
tax payables
3,788,693.37 -
Social
& health insurance payable
7,640,957.17 -
Dividend
payable
- -
Short-term
bank loan 18,958,922,808.00 15,167,138,246.40
Other
short-term payables
1,270,285.58 -
Other
payable - -
Unearned
revenue - -
Total
current liabilities 19,273,715,313.43 15,487,490,197.44
Long-term
liabilities
Long-term
notes payable
- -
Long-term
loans 2,552,657,800.00 3,822,814,040.49
Long-term
bonds payable
- -
Other
payables 890,644,851.77 1,142,207,504.77
Allowance
for long-term liabilities
- -
Total
long-term liabilities 3,443,302,651.77 4,965,021,545.26
TOTAL
LIABILITEIS 22,717,017,965.20 20,452,511,742.70
EQUITY
Government
share - -
Private
share
551,000,000.00 551,000,000.00
Treasury
stock
- -
Total
stock
551,000,000.00 551,000,000.00
Additional
paid-in capital
- -
Revaluation
surplus - -
Other
capital
1,063,457,896.40
1,063,457,896.40
Retained
earnings 1,835,877,802.96 3,664,220,151.69
Current
year
917,694,890.29 1,828,342,348.73
Prior
period
918,182,912.67
1,835,877,802.96
TOTAL
EQUITY
3,450,335,699.36
5,278,678,048.09
Minority
interest - -
TOTAL
LIABILITEIS & EQUITY
26,167,353,664.56
25,731,189,790.79
INCOME
STATEMENT
31 December 2011
Sales
income
41,896,799,290.12
Sales
allowance and returns -
Sales
discount
-
Total
income
41,896,799,290.12
Cost
of goods sold (34,114,033,400.99)
Gross
margin
7,782,765,889.13
Operating
expense
Salary
expense
(711,541,635.68)
Social
security tax expense
(78,519,222.24)
Repair
and maintenance expense
(490,449,380.70)
Utility
expense
(143,017,882.29)
Rental
expense
(683,979,210.85)
Business
travel expense (302,359,618.07)
Transportation
expense
(112,102,728.69)
Office
supply expense -
Depreciation
(275,640,810.92)
Advertisement
expense
(71,098,889.69)
Communication
expense
(40,681,998.59)
Fuel
expense
(416,653,173.11)
Allowance
for bad debts -
Bonus
and commission expense -
Interest
expense
(1,553,122,286.79)
Other
operating expense
(1,501,387,975.15)
Custom
expense -
Total
operating expense
(6,380,554,812.78)
Operating
income
1,402,211,076.36
Non-operating
income
Income
of supplementary manufacturing -
Penalty
and allowance
477,910,790.44
Income
from dividend and interest -
Gain
(loss) from forex revaluation
282,530,585.37
Realized
gain (loss) from forex revaluation -
Bond/Security
discount or premium amortization -
Income
gained from joint venture -
Other
(131,160,953.58)
Total
non-operating income (expense)
629,280,422.23
Profit
before tax
2,031,491,498.58
Income
tax expense
(203,149,149.86)
Profit
after tax
1,828,342,348.73
Minority
part
-
Normal
operational income (loss)
1,828,342,348.73
Total
extraordinary gain and loss -
Net
income 1,828,342,348.73
Historical profit and loss account :
Sales Turnover : US DLRS 1,500,000 - 2005 - exact
: US DLRS 3,000,000 - 2006 - exact
:
US DLRS 10,000,000 - 2007 - exact *
: US DLRS
11,000,000 - 2008 - exact
: US DLRS
15,000,000 - 2009 - approx
:
TUGRIK 26,426,435,934 - 2010 - exact
: TUGRIK 41,896,799,290 - 2011 - exact
: TUGRIK 56,766,001,978 - 2012 - exact
: TUGRIK 51,618,874,028 - 2013 - exact
Net Profit : TUGRIK 1,033,664,005 - 2010 - exact
: TUGRIK
2,031,491,499 - 2011 – exact
: TUGRIK
3,523,071,754 - 2012 - exact
: TUGRIK 4,510,742,273 – 2013 - exact
Total Capital Investment : TUGRIK 12,616,291,765 (as of February 2014)
Total Value of Stock Held : TUGRIK 12,035,745,342 (as of February
2014)
Total Value of Current Contracts : US DLRS 10,000,000 (as of February
2014)
Financial year ends 31 December.
The following financial information applies subject’s affiliated
company, Hera Equipment LLC :
Sales Turnover :
TUGRIK 16,180,078,468.52 - 2009 - exact
: TUGRIK
45,972,019,897.70 - 2010 - exact
: TUGRIK 107,537,885,205.21 - 2011 –
exact *
: TUGRIK
81,171,610.189.00 - 2012 - exact
: TUGRIK
81,443,288,363.00 - 2013 - exact
Net Profit : TUGRIK
508,596,802.83 - 2009 - exact
: TUGRIK
3,915,702,918.52 - 2010 - exact
: TUGRIK
15,703,222,729.21 - 2011 – exact *
: TUGRIK
17,227,656,233.00 - 2012 - exact
: TUGRIK
16,730,486,290.00 - 2013 - exact
Total Capital Investment : TUGRIK 90,558,833,039 (as of February 2014)
Total Value of Stock Held :
TUGRIK 3,486,743,304.50 (as of March 2012)
Total Value of Current Contracts : US DLRS 10,000,000 (as of February
2014)
* A significant increase in sales turnover in 2011 was attributed to
favourable market conditions and expansion of the business.
Financial year ends 31 December.
The following balance sheets as at 30 September 2011 applies subject’s affiliated
company, Remicon JSC :
1
Jan
2011 30 Sep 2011
(in TUGRIK)
ASSETS
Current
Asset
Cash
and cash equivalent 425,363,450.06 944,129,059.19
Short
term investment
- -
Devaluation - -
Accounts
receivable
813,244,874.67 3,277,014,449.31
Allowance
for bad debts - -
Other
receivable
16,727,931.03 64,742,196.11
Inventory 90,415,225.13 865,725,773.98
Work
in process - -
Prepayment (870,001.35) 126,557,346.12
Total
Current Asset
1,344,881,479.54
5,278,168,824.71
Fixed
asset
4,850,393,928.70
6,351,989,201.62
Accumulated
depreciation (886,707,420.73) (1,190,731,447.53)
Other
fixed assets - -
Building
under construction
584,900.00 584,900.00
Intangible
asset 1,037,748,677.50 2,537,948,677.50
Total
Fixed Assets
5,002,020,085.47
7,699,791,331.59
TOTAL
ASSET 6,346,901,565.01 12,977,960,156.30
LIABILITIES
AND SHAREHOLDERS EQUITY
Liability
Current
Liability
Accounts
payable
13,980,450.55 3,560,185,217.19
Salaries
Payable
- 5,043,372.00
Corporate
income tax
55,442,396.66 190,387,453.19
VAT
payable
- 233,426,710.19
Social
& health insurance payable
(646,391.12) 14,545,309.62
Other
payables
93,564.00 -
Unearned
revenue
250,000.00 250,000.00
Total
Current Liabilities
69,120,020.09 4,003,838,062.19
Long
Term Liabilities
Long
term notes payable
- -
Long
term loans - -
Long
term bonds payable
- -
Other
payables
- -
Allowance
for long term liabilities
- -
Total
Long Term Liabilities
- -
Total
Liabilities
69,120,020.09 4,003,838,062.19
Stockholders'
Equity
Share
: а) government
b) private 1,579,075,886.00 -
Treasury
stock
- 7,867,946,406.00
Total
stock
1,579,075,886.00
7,867,946,406.00
Additional
paid-in capital - -
Other
capital
5,048,820,200.00
-
Retained
earnings
(350,114,541.08)
1,106,175,688.11
Current
year
421,683,126.18 1,556,042,552.39
Prior
period (771,797,667.26) (449,866,864.28)
Total
Stockholders' Equity
6,277,781,544.92
8,974,122,094.11
TOTAL
LIABILITIES & SHAREHOLDERS
EQUITY 6,346,901,565.01 12,977,960,156.30
The following cash flow statement as at 31 December 2011 applies to
subject’s affiliated company, Remicon JSC :
31 Dec 2010 31 Dec 2011
(in TUGRIK)
Cash
flows from operating activities
Cash
inflow
5,216,787,334.70
13,611,164,335.17
Cash
sales and collections
from
customers
5,216,697,933.81
13,589,424,335.17
Cash
from supplementary service
and
manufacturing 89,400.89 21,740,000.00
Cash
outflow
(4,810,478,187.46) (16,041,106,021.31)
Employees'
salary payment
(210,668,551.40)
(344,299,380.49)
Social
Security tax payment
(63,909,656.00)
(96,360,094.48)
Merchandise
purchase (6,108,255.45) (706,877,705.30)
Cash
paid for utility expenses
(23,701,723.00)
(37,623,645.00)
Fuel,
petrol, transportation fee,
spare
part purchase
(40,295,560.00)
(121,137,644.00)
Other
payments to suppliers
(4,434,253,841.61) (14,488,768,173.63)
Paid
interest
(8,580,800.00) (560,000.00)
Tax
payments
(22,959,800.00)
(245,479,378.41)
Net
cash from operating
activities 406,309,147.24 (2,429,941,686.14)
Noncurrent
asset acquisition
(4,679,540.00) (200,000.00)
Net
cash from investing
Activities (4,679,540.00) (200,000.00)
Cash
flows from financing
Activities (10,166,640.50) -
Cash
from stock issuance
- 1,240,050,320.00
Bank
loan - 1,522,276,487.50
Loan
payment
- (541,321,037.50)
Donations (10,211,507.00) -
Current
portion payment of long
term
liabilities - (132,325,858.00)
Interest
income
44866.5 4839405.11
Currency
exchange difference
- (41,511,958.94)
Net
cash from financing
activities (10,166,640.50) 2,052,007,358.17
Net
cash movement
391,462,966.74
(378,134,327.97)
Cash
& cash equivalent at
the
beginning of period
33,900,483.32 425,363,450.06
Cash
& cash equivalent at
the
end of period
425,363,450.06 47,229,122.09
Historical profit and loss account :
Sales Turnover : TUGRIK 778,000,000.00 - 2009 - exact
: TUGRIK 4,710,892,217.53 - 2010 - exact
: TUGRIK 12,281,492,472.85 - 2011 -
exact
Net Profit (before tax) : TUGRIK (73,857,659)- 2009 - exact
: TUGRIK 471,114,968.84 - 2010 - exact
: TUGRIK
2,348,682,844.22 - 2011 - exact
Financial year ends 31 December.
Date Started : 21 December 2005
History : The subject company was established
in Mongolia on 21 December 2005, however origins of its business activities can
be traced back to 28 August 2003.
C.R. No. : 9011091053
Tax No: 2787687
Authorised Capital : US DLRS 1,500,000 (increased from TUGRIK
734,000,000 in late 2007)
Paid up Capital : US DLRS 1,500,000 (increased from TUGRIK
734,000,000 in late 2007)
Limited Liability Company with the following sole shareholder:
Khassuuri Gankhuyag 100%
Affiliated companies of Hera Investment LLC :
Associates
1. Belie Medved LLC
2. Remicon JSC
Hera Business Center Building
Peace Avenue, 5th Khoroo
Gurvaljin Bridge, Bayangol
District
P.O.Box No.: 16081
Ulaanbaatar
Telephone: (976 70) 123 333
Fax : (976 70) 123 333
Managing Director : Enkhbayar
Munkhsaikhan
Total Employees : 84
Principal Bank : Trade And
Development Bank of Mongolia
Est. : 2008
C.R. No. : 9010001071
Tax No.: 5191823
Capital : TUGRIK
7,867,946,406.00
Shareholders :
- Gankhuyag
Khassuuri 50.8%
- Frontier
LLC 12.3%
- Gauli LLC 11.3%
- More than
1,000 minority shareholders 25.6%
(Manufacturers of ready mixed
concrete, construction materials,
concrete panels and cement
blocks)
3. Hera Equipment LLC
Hera Business Center Building
Peace Avenue, 5th Khoroo
Gurvaljin Bridge, Bayangol
District
P.O.Box No.: 16081
Ulaanbaatar
Telephone: (976 70) 182 131 /
(976 99) 108 030
Fax : (976 70) 182 161 / 182 171
E-Mail : batkhuyag@hera.mn
Managing Director : Batkhuyag
Ganbold
Employees : 150
Principal Banker : Trade and
Development Bank of Mongolia
Est.: 18 November 2004
C.R. No. : 9011058017
Tax No.: 2858614
Capital : TUGRIK 1,000,000
Shareholders:
- Khassuuri
Gankhuyag - 90%
- Mongolia
Opportunities Fund I, L.P. - 10%
(Trading as importers,
wholesalers, retailers and distributors of
heavy machines such as
excavators, tractors and spare parts)
4. Hera Foods LLC
5. Hera Mining Service LLC
6. Hera Construction LLC
7. Bluebus LLC
8. Ar Zam LLC
9. Hera Automotive LLC
10.Hera Mining Equipment LLC
11.Gobi Equipment Rental Fleet LLC
12.Main Technology Marc LLC
13.National Leasing Service LLC
The Company is involved in the following activities :
Holding and management company for a group of companies.
Subject provides the following investment activities:
- Investment and financing
- Lease and rent of heavy machinery and equipment
- Consulting
- Sands and gravel quarry
NACE Code: 6420 / 7022 / 7732
Imports from South Korea, Belarus and China.
Subject does not export, all sales are domestic.
Subject’s principal supplier :
Hyundai Heavy Industires Co., LTD (South Korea)
Subject formerly was trading as importers and distributors of heavy
industrial equipment, Hyundai automobiles as well as alcoholic and
non-alcoholic beverages. Manufacturers of ready mix concrete.
The Company has the following facilities :
Rented premises comprising administrative offices located at the heading
address.
Subject formerly located at :
Hera Industrial Park, 20th Khoroo, Songinokhairkhan District
Ulaanbaatar
Telephone: (976 70) 182 182 / 182 180 / 182 184 / Mobile (976 99) 000
095 (Altanzull Jambal)
Fax : (976 70) 182 180
Subject formerly located at :
Monnis Tower 14th Floor
Chingis Avenue 15, SBD-1
Sukhbaatar District
Ulaanbaatar 14240
Until December 2010 subject was located at :
Barmash Building, 3rd Floor
Chingis Avenue 305
Khan Uul District, 3rd Khoroo
Ulaanbaatar
Telephone: (976 11) 344 352 / 345 646 / Mobile (976 99) 110 305
Fax : (976 11) 344 351
Until June 2005 subject was located at the following address:
11th-storey Government Building, 1st Floor
Victory Square
Chingileti District
Ulaanbaatar
Tel: (976 11) 330 535
Fax: (976 11) 330 428
Hera Business Centre Building
Peace Avenue, 5th Khoroo
Gurvaljin Bridge, Bayangol District
P.O. Box No.: 16081
Ulaanbaatar
Until December 2010 subject was located at :
Barmash Building, 3rd Floor
Chingis Avenue 305
Khan Uul District, 3rd Khoroo
Ulaanbaatar
Hera Industrial Park, 20th Khoroo, Songinokhairkhan District
Ulaanbaatar
Telephone: (976 70) 182 182 / 182 180 / 182 184 / Mobile (976 99) 000
095 (Altanzull Jambal)
Fax : (976 70) 182 180
The address which you provided: Monns Tower, 14th Floor, Chinggis
Avenue-15, Sukhbaatar, ulaanbaatar applies to subject's former address. Please
note that subject's current administrative office address is as per heading.
The telephone number given by you: 976 70182182 applies to subject’s
branch office only. Please note that subject’s administrative office telephone
and fax numbers are as per heading.
Interviewed: Khassuuri
Gankhuyag (President).
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.44 |
|
|
1 |
Rs.102.48 |
|
Euro |
1 |
Rs.85.28 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.