MIRA INFORM REPORT
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Report Date : |
24.01.2014 |
IDENTIFICATION DETAILS
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Name : |
TORISHIMA PUMP MFG CO LTD |
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Registered Office : |
1-1-8 Miyatacho Takatsuki City Osaka-Pref 569-8660 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2013 |
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Date of Incorporation : |
April, 1928 |
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Com. Reg. No.: |
1209-01-011562 (Osaka-Takatsuki) |
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Legal Form : |
Limited Company (Kabushiki Kaisha |
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Line of Business : |
Manufacturing of industrial pumps (large, high-tech pumps) |
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No. of Employees : |
1,612 |
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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Maximum Credit Limit : |
Yen 1,557.8 million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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
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Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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Japan |
A1 |
A1 |
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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 |
JAPAN - ECONOMIC OVERVIEW
In the years following World War II, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (1% of GDP) helped Japan develop a technologically advanced economy. Two notable characteristics of the post-war economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features are now eroding under the dual pressures of global competition and domestic demographic change. Japan's industrial sector is heavily dependent on imported raw materials and fuels. A small agricultural sector is highly subsidized and protected, with crop yields among the highest in the world. While self-sufficient in rice production, Japan imports about 60% of its food on a caloric basis. For three decades, overall real economic growth had been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a 4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the after effects of inefficient investment and an asset price bubble in the late 1980s that required a protracted period of time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession three times since 2008. A sharp downturn in business investment and global demand for Japan's exports in late 2008 pushed Japan into recession. Government stimulus spending helped the economy recover in late 2009 and 2010, but the economy contracted again in 2011 as the massive 9.0 magnitude earthquake and the ensuing tsunami in March disrupted manufacturing. The economy has largely recovered in the two years since the disaster, but reconstruction in the Tohoku region has been uneven. Newly-elected Prime Minister Shinzo ABE has declared the economy his government's top priority; he has pledged to reconsider his predecessor's plan to permanently close nuclear power plants and is pursuing an economic revitalization agenda of fiscal stimulus and regulatory reform and has said he will press the Bank of Japan to loosen monetary policy. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, Japan in 2012 stood as the fourth-largest economy in the world after second-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. The new government will continue a longstanding debate on restructuring the economy and reining in Japan's huge government debt, which exceeds 200% of GDP. Persistent deflation, reliance on exports to drive growth, and an aging and shrinking population are other major long-term challenges for the economy.
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Source
: CIA |
TORISHIMA PUMP MFG
CO LTD
REGD NAME: Torishima Seisakusho
KK
MAIN OFFICE: 1-1-8 Miyatacho
Takatsuki City Osaka-Pref 569-8660 JAPAN
Tel: 072-695-0551 -
URL: http://www.torishima.co.jp
E-Mail address: (thru the URL)
Mfg of industrial pumps (large, high-tech pumps)
Osaka, Tokyo, Fukuoka, Nagoya, Sapporo, Sendai, Hiroshima, other (Tot
23)
China (2), Doha, Abu Dhabi, Arab Emirates, Europe (4), Vietnam,
Singapore, Indonesia (3), India, USA, Canada, other
At the caption address; China, Indonesia, other
KOTARO HARADA, PRES
In million Yen, unless otherwise stated
FINANCES FAIR A/SALES Yen 45,974 M
PAYMENTS SLOW BUT CORRECT CAPITAL Yen
1,592 M
TREND SLOW WORTH Yen 33,602 M
STARTED 1928 EMPLOYES 1,612
MFR OF INDUSTRIAL PUMPS
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS
ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 1,557.8 MILLION, 30 DAYS NORMAL TERMS
|
Business |
Terms Ending |
Annual Sales* |
R.Profit* |
N.Profit* |
S.Growth |
Net Worth* |
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Results: |
31/03/2010 |
45,008 |
3,833 |
2,609 |
(%) |
31,083 |
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(Consolidated) |
31/03/2011 |
49,880 |
3,673 |
1,892 |
10.82 |
30,968 |
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31/03/2012 |
46,453 |
2,929 |
1,497 |
-6.87 |
31,775 |
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31/03/2013 |
45,974 |
1,389 |
943 |
-1.03 |
33,602 |
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31/03/2014 |
42,000 |
1,000 |
700 |
-8.64 |
.. |
Unit: In Million
Yen
Forecast figures
for the 31/03/2014 fiscal term.
This is the largest pump specialist mfr, particularly exceeding in
large, high-tech pumps. One of Japan’s
“Big 3” pump mfrs. Additionally,
contractor for turnkey pump stations.
First company to succeed in domestic production of mechanical
seals. Has strength in sales to
government offices and public agencies.
Placing more emphasis on overseas markets including Middle East. The company aims to actively use its plant in
China and Indonesia, in bid to reduce production costs, while urging production
streamlining thru upgrading of the HQ plant.
It will increase procurement of Chinese and Korean materials and
European components. The company made
FEDCO in the US having superior technology for desalination-use pumps &
superchargers an equity-method applied firm by making a 50% investment. It intends to broaden the lineup of those
products, aiming for dominance in the market.
It is starting up its maintenance work plant in India in Oct 2013.
The sales volume for Mar/2013 fiscal term amounted to Yen 45,974
million, a 1% down from Yen 46,453 million in the previous term. The recurring profit was posted at Yen 1,389
million and the net profit at Yen 943 million, respectively, compared with Yen
2,929 million recurring profit and Yen 1,497 million net profit, respectively,
a year ago.
(Apr/Sept/2013 results): Sales Yen 17,814 million (down 7.0%), operating
loss Yen 901 million (previously Yen 1,039 million loss), recurring loss Yen
721 million (previously Yen 884 million loss), net losses Yen 446 million
(previously Yen 873 million losses). (%
& figures compared with the corresponding period a year ago)
For the current term ending Mar 2014 the recurring profit is projected
at Yen 1,000 million and the net profit at Yen 700 million, on an 8.6% fall in
turnover, to Yen 42,000 million.
Large-lot orders for pumps such as for products for desalination plants
will in pre-harvest months for domestic and overseas markets. Low-profit orders from overseas customers
faded out in the preceding term. Sales
of high-profitable maintenance works will grow, buoyed by enhancement of bases
in Asia, etc. Operating profit will
bottom out. Forex gain will emerge in
the non-operating account.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit
is estimated at Yen 1,557.8 million, on 30 days normal terms.
Date Registered: Apr 1928
Regd No.: 1209-01-011562
(Osaka-Takatsuki)
Legal Status: Limited Company (Kabushiki Kaisha
Authorized: 60 million
shares
Issued: 29,889,079.00 shares
Sum: Yen 1,592 million
Major shareholders (%): Harada Memorial Foundation (9.0), Company’s
Treasury Stock (6.1), Resona Bank (4.3), MUFG (4.2), SMBC (4.2), JPM-organ
Chase Bank (4.0), Nippon Life Ins (2.5), Kurimoto Ltd (2.1), Hisaka Works
(2.0), Japan Trustee Services T (2.0); foreign owners (9.5)
No. of shareholders: 9,662
Listed on the S/Exchange (s) of: Tokyo
Managements: Kotaro Harada, pres; Hiromichi Fujikawa, s/mgn dir; Sadao Uchida, mgn dir; Tetsuya Kujima, mgn
dir
Nothing detrimental is known as to the commercial morality of
executives.
Related companies: Kyushu Torishima, Torishima Pump Hong Kong, Wind
Energy
Development, other.
Activities: Manufactures industrial pumps & seals (--97%), others
(3%)
Overseas Sales Ratio (63%)
Pumps: Selected by type: end-suction pumps, double-suction pumps,
multi-stage pumps, large pumps, specialized pumps; Selected by industry:
seawater desalination, power industry, water & wastewater, irrigation &
drainage, oil & gas, general industry;
Mechanical Seal: rubber bellows seals, rotating single-spring seals,
rotating multi-spring seals, cartridge seals, split seals, stationary seals,
others
Clients: [Mfrs, wholesalers] Products are exported.
Domestically: government & public agencies, mfrs, oil refineries,
other
No. of accounts: 1,000
Domestic areas of
activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Toshiba Corp, Mitsubishi Electric, other
Payment record: Slow but correct
Location: Business area in Takatsuki City, Osaka-Pref. Office premises at the caption address are owned
and maintained satisfactorily.
Bank References:
Resona Bank
(Dojima)
MUFG
(Osaka-Chuo)
Relations:
Satisfactory
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FINANCES: (Consolidated in million yen) |
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Terms Ending: |
31/03/2013 |
31/03/2012 |
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INCOME
STATEMENT |
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Annual Sales |
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45,974 |
46,453 |
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Cost of Sales |
37,959 |
37,493 |
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GROSS PROFIT |
8,015 |
8,959 |
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Selling & Adm Costs |
7,497 |
6,673 |
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OPERATING PROFIT |
517 |
2,286 |
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Non-Operating P/L |
872 |
643 |
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RECURRING PROFIT |
1,389 |
2,929 |
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NET PROFIT |
943 |
1,497 |
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BALANCE
SHEET |
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Cash |
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11,962 |
7,521 |
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Receivables |
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24,260 |
23,795 |
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Inventory |
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6,756 |
8,238 |
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Securities, Marketable |
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Other Current Assets |
2,715 |
2,699 |
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TOTAL CURRENT ASSETS |
45,693 |
42,253 |
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Property & Equipment |
9,844 |
9,417 |
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Intangibles |
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2,044 |
493 |
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Investments, Other Fixed Assets |
10,651 |
8,649 |
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TOTAL ASSETS |
68,232 |
60,812 |
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Payables |
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12,014 |
10,843 |
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Short-Term Bank Loans |
5,410 |
3,107 |
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Other Current Liabs |
7,182 |
7,726 |
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TOTAL CURRENT LIABS |
24,606 |
21,676 |
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Debentures |
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Long-Term Bank Loans |
7,671 |
4,830 |
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Reserve for Retirement Allw |
1,794 |
1,893 |
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Other Debts |
|
559 |
638 |
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TOTAL LIABILITIES |
34,630 |
29,037 |
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MINORITY INTERESTS |
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Common stock |
1,592 |
1,592 |
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Additional paid-in capital |
7,813 |
7,803 |
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Retained earnings |
23,951 |
23,541 |
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Evaluation p/l on
investments/securities |
903 |
(145) |
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Others |
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311 |
(44) |
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Treasury stock, at cost |
(968) |
(972) |
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TOTAL S/HOLDERS` EQUITY |
33,602 |
31,775 |
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TOTAL EQUITIES |
68,232 |
60,812 |
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CONSOLIDATED
CASH FLOWS |
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Terms ending: |
31/03/2013 |
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Cash Flows from Operating Activities |
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3,513 |
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Cash Flows from Investment
Activities |
-3,966 |
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Cash Flows from Financing Activities |
4,356 |
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Cash, Bank Deposits at the Term End |
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11,962 |
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ANALYTICAL
RATIOS Terms ending: |
31/03/2013 |
31/03/2012 |
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Net Worth (S/Holders' Equity) |
33,602 |
31,775 |
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Current Ratio (%) |
185.70 |
194.93 |
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Net Worth Ratio (%) |
49.25 |
52.25 |
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Recurring Profit Ratio (%) |
3.02 |
6.31 |
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Net Profit Ratio (%) |
2.05 |
3.22 |
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Return On Equity (%) |
2.81 |
4.71 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.61.99 |
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|
1 |
Rs.102.67 |
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Euro |
1 |
Rs.83.98 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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 |
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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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 |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.