MIRA INFORM REPORT

 

 

Report Date :

28.02.2014

 

IDENTIFICATION DETAILS

 

Name :

NATURAL FOREST PTE. LTD.

 

 

Registered Office :

133, Cecil Street, 10 - 01(B), Keck Seng Tower, 069535

 

 

Country :

Singapore

 

 

Financials (as on) :

31.07.2013

 

 

Date of Incorporation :

27.08.2007

 

 

Com. Reg. No.:

200715726-R

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of timber and wood products

 

 

No. of Employees :

02 (2014)

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow

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)

Singapore

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

SINGAPORE - ECONOMIC OVERVIEW

 

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. The economy contracted 0.8% in 2009 as a result of the global financial crisis, but rebounded 14.8% in 2010, on the strength of renewed exports, before slowing to in 2011-13, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub

 

Source : CIA

 

 

EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

200715726-R

COMPANY NAME

:

NATURAL FOREST PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

27/08/2007

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

133, CECIL STREET , 10 - 01(B), KECK SENG TOWER, 069535, SINGAPORE.

BUSINESS ADDRESS

:

133 CECIL ST #10-01B KECK SENG TOWER, 069535, SINGAPORE.

TEL.NO.

:

65-62385920

FAX.NO.

:

65-62385921

CONTACT PERSON

:

HAMZA ASHRAF SAUDAGAR MERCHANT ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF TIMBER AND WOOD PRODUCTS

ISSUED AND PAID UP CAPITAL

:

2,470,804.00 ORDINARY SHARE, OF A VALUE OF USD 2,470,804.00
100,000.00 ORDINARY SHARE, OF A VALUE OF SGD 100,000.00

SALES

:

USD 237,003,690 [2013]

NET WORTH

:

USD 3,422,132 [2013]

STAFF STRENGTH

:

2 [2014]

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

POOR

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 


 

HISTORY / BACKGROUND

 

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

The Subject is principally engaged in the (as a / as an) trading of timber and wood products.

 

The immediate and ultimate holding company of the Subject is SENT OVERSEAS INVESTMENT PTE. LTD., a company incorporated in SINGAPORE.

 

Share Capital History

Date

Issue & Paid Up Capital

27/02/2014

USD 2,470,804.00 & SGD 100,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

SENT OVERSEAS INVESTMENT PTE. LTD.

133, CECIL STREET, 10-01(B), KECK SENG TOWER, 069535, SINGAPORE.

200715725E

2,570,804.00

100.00

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

------

2,570,804.00

100.00

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

YONG ING FATT

Address

:

12, WIMBORNE ROAD, 436641, SINGAPORE.

IC / PP No

:

S0203127B

Nationality

:

SINGAPOREAN

Date of Appointment

:

27/08/2007

 

DIRECTOR 2

 

Name Of Subject

:

DINESH RAMARAJU

Address

:

121B, RIVERVALE DRIVE, 13-426, 542121, SINGAPORE.

IC / PP No

:

S8185709A

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/01/2014



MANAGEMENT

 

1)

Name of Subject

:

HAMZA ASHRAF SAUDAGAR MERCHANT

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

C. S. CHAN & ASSOCIATES PAC

Auditor' Address

:

N/A

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

LIM SOH SEA

IC / PP No

:

S7077960I

Address

:

101A, LORONG 2, TOA PAYOH, 08-07, 310101, SINGAPORE.

 

2)

Company Secretary

:

MASDEWIANA BINTE MOHD KASIM

IC / PP No

:

S7935914I

Address

:

613, BEDOK RESERVOIR ROAD, 11-1180, 470613, SINGAPORE.

 

BANKING


No Banker found in our databank.

 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

 

 

LEGAL CHECK AGAINST SUBJECT


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

No legal action was found in our databank.

No winding up petition was found in our databank.

 

PAYMENT RECORD

 

SOURCES OF RAW MATERIALS:

Local

:

YES

Overseas

:

YES


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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

X

]



CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

Export Market

:

ASIA

Credit Term

:

N/A

Payment Mode

:

CHEQUES
CASH

 

OPERATIONS

 

Goods Traded

:

TIMBER AND WOOD PRODUCTS

 

Total Number of Employees:

YEAR

2014


GROUP

N/A

COMPANY

2

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of timber and wood products.

The Subject refused to disclose its operation.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-62385920

Match

:

N/A

Address Provided by Client

:

#10-01(B) KECK SENG TOWER 133 CECIL STREET SINGAPORE

Current Address

:

133 CECIL ST #10-01B KECK SENG TOWER, 069535, SINGAPORE.

Match

:

YES

 

Other Investigations

 

we contacted one of the staff from the Subject and she provided some information.


FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

30.76%

]

Profit/(Loss) Before Tax

:

Increased

[

0.04%

]

Return on Shareholder Funds

:

Unfavourable

[

8.25%

]

Return on Net Assets

:

Favourable

[

50.79%

]

The increase in turnover could be due to the Subject adopting an aggressive marketing strategy.The Subject's management have been efficient in controlling its operating costs. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Nil

[

0 Days

]

Debtor Ratio

:

Unfavourable

[

143 Days

]

Creditors Ratio

:

Unfavourable

[

103 Days

]

As the Subject is a service oriented company, the Subject does not need to keep stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The unfavourable creditors' ratio could be due to the Subject taking advantage of the credit granted by its suppliers. However this may affect the goodwill between the Subject and its suppliers and the Subject may inadvertently have to pay more for its future supplies.

Liquidity

Liquid Ratio

:

Favourable

[

1.03 Times

]

Current Ratio

:

Unfavourable

[

1.03 Times

]

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Unfavourable

[

1.20 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

Overall Assessment :

Generally, the Subject's performance has improved with higher turnover and profit. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.

Overall financial condition of the Subject : FAIR

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators :

2008

2009

2010

2011

2012

 

Population (Million)

4.84

4.98

5.08

5.18

5.31

Gross Domestic Products ( % )

1.5

(0.8)

14.5

4.9

1.3

Consumer Price Index

6.6

0.6

2.8

5.2

4.6

Total Imports (Million)

450,892.6

356,299.3

423,221.8

459,655.1

474,554.0

Total Exports (Million)

476,762.2

391,118.1

478,840.7

514,741.2

510,329.0

 

Unemployment Rate (%)

2.2

3.2

2.2

2.1

2.0

Tourist Arrival (Million)

10.12

9.68

11.64

13.17

14.37

Hotel Occupancy Rate (%)

81.0

75.8

85.6

86.5

86.4

Cellular Phone Subscriber (Million)

1.31

1.37

1.43

1.50

1.52

 

Registration of New Companies (No.)

25,327

26,414

29,798

32,317

31,892

Registration of New Companies (%)

(2.2)

4.3

12.8

8.5

(1.3)

Liquidation of Companies (No.)

10,493

22,393

15,126

19,005

17,218

Liquidation of Companies (%)

13.7

113.4

(32.5)

25.6

9.4

 

Registration of New Businesses (No.)

24,850

26,876

23,978

23,494

24,788

Registration of New Businesses (%)

0.36

8.15

(10.78)

2.02

5.51

Liquidation of Businesses (No.)

21,150

23,552

24,211

23,005

22,489

Liquidation of Businesses (%)

(0.8)

11.4

2.8

(5)

(2.2)

 

Bankruptcy Orders (No.)

2,326

2,058

1,537

1,527

1,748

Bankruptcy Orders (%)

(15.9)

(11.5)

(25.3)

(0.7)

14.5

Bankruptcy Discharges (No.)

1,500

3,056

2,252

1,391

1,881

Bankruptcy Discharges (%)

(7.7)

103.7

(26.3)

(38.2)

35.2

 

INDUSTRIES ( % of Growth ) :

Agriculture

Production of Principal Crops

(0.32)

3.25

(0.48)

4.25

3.64

Fish Supply & Wholesale

(6.31)

(1.93)

(10.5)

12.10

(0.5)

 

Manufacturing *

74.6

71.5

92.8

100.0

100.3

Food, Beverages & Tobacco

94.8

90.4

96.4

100.0

103.5

Textiles

180.1

145.9

122.1

100.0

104.0

Wearing Apparel

334.6

211.0

123.3

100.0

92.1

Leather Products & Footwear

128.2

79.5

81.8

100.0

98.6

Wood & Wood Products

132.0

101.4

104.0

100.0

95.5

Paper & Paper Products

101.0

95.4

106.1

100.0

97.4

Printing & Media

118.2

100.9

103.5

100.0

93.0

Crude Oil Refineries

113.1

96.4

95.6

100.0

99.4

Chemical & Chemical Products

84.5

80.3

97.6

100.0

100.5

Pharmaceutical Products

43.7

49.1

75.3

100.0

109.7

Rubber & Plastic Products

120.1

101.2

112.3

100.0

96.5

Non-metallic Mineral

96.5

91.9

92.5

100.0

98.2

Basic Metals

109.8

92.6

102.2

100.0

90.6

Fabricated Metal Products

101.3

90.8

103.6

100.0

104.3

Machinery & Equipment

65.0

57.3

78.5

100.0

112.9

Electrical Machinery

81.7

86.8

124.1

100.0

99.3

Electronic Components

93.1

85.2

113.6

100.0

90.6

Transport Equipment

102.0

96.0

94.0

100.0

106.3

 

Construction

45.90

(36.9)

14.20

20.50

28.70

Real Estate

(11.2)

1.4

21.3

25.4

31.9

 

Services

Electricity, Gas & Water

(1.3)

1.70

4.00

7.00

6.30

Transport, Storage & Communication

11.60

3.90

12.80

7.40

5.30

Finance & Insurance

(5.9)

(16.4)

(0.4)

8.90

0.50

Government Services

17.40

4.50

9.70

6.90

6.00

Education Services

0.50

0.10

(0.9)

(1.4)

0.30

 

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



INDUSTRY ANALYSIS

 

INDUSTRY :

TRADING

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

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

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

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

OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2007, the Subject is a Private Limited company, focusing on trading of timber and wood products. Having been in business for 7 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. Having strong support from its holding company has enabled the Subject to remain competitive despite the challenging business environment. The capital standing of the Subject is fair. With an adequate share capital, the Subject has the potential of expanding its business in future.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. The Subject's business operation is supported by 2 employees. Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. However, the Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at USD 3,422,132, the Subject should be able to maintain its business in the near terms.

The Subject's supplier are from both the local and overseas countries. This will eliminates the risk of dependency on deliveries from a number of key suppliers and insufficient quantities of its raw materials. Overall the Subject has a good control over its resources.

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

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

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

 



PROFIT AND LOSS ACCOUNT

 

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

NATURAL FOREST PTE. LTD.

 

Financial Year End

2013-07-31

2012-07-31

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

USD

USD

TURNOVER

237,003,690

181,253,347

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

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

Total Turnover

237,003,690

181,253,347

Costs of Goods Sold

(234,503,918)

(178,372,604)

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

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

Gross Profit

2,499,772

2,880,743

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

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

PROFIT/(LOSS) FROM OPERATIONS

295,401

295,279

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

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

PROFIT/(LOSS) BEFORE TAXATION

295,401

295,279

Taxation

(13,146)

(30,088)

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

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

PROFIT/(LOSS) AFTER TAXATION

282,255

265,191

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

644,073

378,882

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

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

As restated

644,073

378,882

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

926,328

644,073

DIVIDENDS - Ordinary (paid & proposed)

(50,000)

-

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

876,328

644,073

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

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

INTEREST EXPENSE (as per notes to P&L)

Others

1,442,827

1,770,620

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

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

1,442,827

1,770,620

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

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

 

 

BALANCE SHEET

 

NATURAL FOREST PTE. LTD.

 

ASSETS EMPLOYED:

FIXED ASSETS

606

-

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

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

TOTAL LONG TERM ASSETS

606

-

CURRENT ASSETS

Trade debtors

93,003,739

54,656,957

Other debtors, deposits & prepayments

208,378

617,138

Amount due from holding company

634,773

8,175

Amount due from related companies

1,750,000

4,165,000

Cash & bank balances

6,116,265

151,632

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

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

TOTAL CURRENT ASSETS

101,713,155

59,598,902

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

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

TOTAL ASSET

101,713,761

59,598,902

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

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

CURRENT LIABILITIES

Trade creditors

66,421,434

30,968,083

Other creditors & accruals

1,996,027

151,176

Provision for taxation

36,439

50,481

Other liabilities

29,837,729

26,739,285

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

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

TOTAL CURRENT LIABILITIES

98,291,629

57,909,025

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

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

NET CURRENT ASSETS/(LIABILITIES)

3,421,526

1,689,877

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

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

TOTAL NET ASSETS

3,422,132

1,689,877

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

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

SHARE CAPITAL

Ordinary share capital

2,545,804

1,045,804

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

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

TOTAL SHARE CAPITAL

2,545,804

1,045,804

RESERVES

Retained profit/(loss) carried forward

876,328

644,073

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

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

TOTAL RESERVES

876,328

644,073

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

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

SHAREHOLDERS' FUNDS/EQUITY

3,422,132

1,689,877

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

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

3,422,132

1,689,877

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

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

 

 

FINANCIAL RATIO

 

NATURAL FOREST PTE. LTD.

 

TYPES OF FUNDS

Cash

6,116,265

151,632

Net Liquid Funds

6,116,265

151,632

Net Liquid Assets

3,421,526

1,689,877

Net Current Assets/(Liabilities)

3,421,526

1,689,877

Net Tangible Assets

3,422,132

1,689,877

Net Monetary Assets

3,421,526

1,689,877

BALANCE SHEET ITEMS

Total Borrowings

0

0

Total Liabilities

98,291,629

57,909,025

Total Assets

101,713,761

59,598,902

Net Assets

3,422,132

1,689,877

Net Assets Backing

3,422,132

1,689,877

Shareholders' Funds

3,422,132

1,689,877

Total Share Capital

2,545,804

1,045,804

Total Reserves

876,328

644,073

LIQUIDITY (Times)

Cash Ratio

0.06

0.00

Liquid Ratio

1.03

1.03

Current Ratio

1.03

1.03

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

0

Debtors Ratio

143

110

Creditors Ratio

103

63

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

0.00

Liabilities Ratio

28.72

34.27

Times Interest Earned Ratio

1.20

1.17

Assets Backing Ratio

1.34

1.62

PERFORMANCE RATIO (%)

Operating Profit Margin

0.12

0.16

Net Profit Margin

0.12

0.15

Return On Net Assets

50.79

122.25

Return On Capital Employed

50.79

122.25

Return On Shareholders' Funds/Equity

8.25

15.69

Dividend Pay Out Ratio (Times)

0.18

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0



FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.94

UK Pound

1

Rs.103.31

Euro

1

Rs.85.11

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIS

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

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This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                  Payment record (10%)

Credit history (10%)                   Market trend (10%)                                Operational size (10%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.