MIRA INFORM REPORT

 

 

Report Date :

26.07.2014

 

IDENTIFICATION DETAILS

 

Name :

P.T. TOBA PULP LESTARI TBK

 

 

Formerly Known as : 

P.T. INTI INDORAYON UTAMA Tbk

 

 

Registered Office :

Uniplaza East Tower 7th Floor, Jalan Letjen MT. Haryono No. A-1, Medan 20231, North Sumatra

 

 

Country :

Indonesia

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

26.04.1983

 

 

Com. Reg. No.:

AHU-AH.01.10-50622

 

 

Legal Form :

Publicly Listed Company

 

 

Line of Business :

·         Subject is an industrial producer of pulp

Engaged in production of pulp and viscose rayon under PMDN (Domestic Capital Investment)

Engaged in producing dissolving pulp (basic material of viscose rayon) by switching a number of machines.

 

 

No of Employees :

984

 

 

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 – March 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Indonesia

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

Indonesia ECONOMIC OVERVIEW

 

Indonesia, a vast polyglot nation, has grown strongly since 2010. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25% and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government also faces the challenges of quelling labor unrest and reducing fuel subsidies in the face of high oil prices.

Source : CIA

 

Name of Company

 

P.T. TOBA PULP LESTARI Tbk

 

 

company Address

 

Head Office

Uniplaza East Tower 7th Floor

Jalan Letjen MT. Haryono No. A-1

Medan 20231

North Sumatra

Indonesia

Phones             - (62-61) 453 2155, 453 2088

Fax                   - (62-61) 457 3428, 453 0967

E-mail               - investor_relation@tobapulp.com

Website            - http://www.tobapulp.com 

Building Area     - 4 storey

Office Space      - 230 sq. meters

Region              - Commercial

Status               - Rent

 

Factory

Desa Sosor Ladang

Porsea, Tobasa

North Sumatera

Indonesia

Phones             - (62-632) 734 6000, 734 6001

Fax                   - (62-632) 734 6006

Building Area     - 500,000 sq. meters

Building Space  - 230,000 sq. meters

Region              - Industrial Zone

Status               - Owned

 

 

Date of Incorporation

 

a.   26 April 1983 as P.T. INTI INDORAYON UTAMA

b.   17 April 1997 as P.T. INTI INDORAYON UTAMA Tbk

c.   15 November 2000 as P.T. TOBA PULP LESTARI Tbk

                      

 

Legal Form

 

P.T. Tbk (Perseroan Terbatas Terbuka) or Publicly Listed Company

 

Company Reg. No.

 

The Ministry of Law and Human Rights

- No. C2-5130.HT.01.01.TH.83

  Dated 26 July 1983

- No. AHU-50872.AH.01.02.TH.2009

  Dated 21 October 2009

- No. AHU-AH.01.10-50622

  Dated 25 November 2013

 

 

Company Status

 

Foreign Investment (PMA) Company

 

 

Permit by the Government Department

 

The Department of Finance

NPWP No. 01.219.795.0-054.000

 

The Investment Coordinating Board

- No. 269/I/PMDN/1983

  Dated 22 December 1983

- No. 07/V/PMA/1990

  Dated 11 May 1990

- No. 168/II/PMA/1990

  Dated 20 November 1990

- No. 47/II/PMA/1997

  Dated 24 March 1997

- No. 1318/III/PMA/1998

  Dated 21 September 1998

 

 

Related Company

 

A Member Company of the ROYAL GOLDEN EAGLE Group (see attachment)

 

 

CAPITAL AND OWNERSHIP

 

Capital Structure :

Authorized Capital                            : Rp. 1,688,307,072,000.-

Issued Capital                                  : Rp. 1,406,922,560,000.-

Paid up Capital                                : Rp. 1,406,922,560,000.-

 

Shareholders/Owners :

a.   PINNACLE COMPANY LIMITED, Bahamas       - Rp. 1,244,369,130,000.-

b.   UOB KAY HIAN PTE LTD., Singapore  - Rp.      76,103,602,000.-

c.   Public                                                            - Rp.      55,320,718,000.-

 

 

BUSINESS ACTIVITIES

 

Lines of Business :

Pulp and Viscose Rayon Industry

 

Production Capacity :

a.   Pulps                                        - 240,000 tons p.a.

b.   Dissolving Pulps                        - 180,000 tons p.a.

c.   Viscose Rayon                          -   60,000 tons p.a.

d.   HCL                                          -   39,095 tons p.a.

e.   NaOH                                       -   66,000 tons p.a.

f.    C12                                          -   18,150 tons p.a.

g.   Na2SO4 Anhydrous                   -   27,000 tons p.a.

h.   CS2                                          -     9,000 tons p.a.

i. H2SO4                                         -   45,000 tons p.a.

j. Hydrogen Peroxides                      -     5,000 tons p.a.

k. Aluminum Sulfates                       -   10,000 tons p.a.

 

Total Investment :

a.   Equity Capital                            - Rp. 1,406.3 billion

b.   Loan Capital                              - Rp. 1,121.6 billion

c.   Total Investment                         - Rp. 2,527.9 billion

 

Started Operation :

April 1989

 

Brand Name :

Toba Pulp Lestari

 

Technical Assistance :

None

 

Number of Employee :

984 persons                                   

 

Marketing Area :

Export      - 90%

Local       - 10%

 

Main Customer :

Buyers in China, South Korea, Finland, Swedish, Australia and others


 

Market Situation :

Very Competitive

 

Main Competitors :

a. P.T. INDAH KIAT PULP & PAPER MILLS tbk

b. P.T. KERTAS NUSANTARA

c. P.T. PINDO DELI PULP & PAPER MILLS

d. P.T. Pabrik Kertas TJIWI KIMIA Tbk

e. P.T. TANJUNG ENIM LESTARI PULP & PAPER

 

Business Trend :

Fluctuating

 

 

BANKER, AUDITOR & LITIGATION

 

Bankers :

a.   P.T. Bank NEGARA INDONESIA Tbk

      Wisma 46 – Kota BNI

      Jalan Jend. Sudirman Kav. 1

      Jakarta Pusat

      Indonesia

b.   P.T. Bank MANDIRI Tbk

      Plaza Mandiri

      Jalan Jend. Gatot Subroto Kav. 36-38

      Jakarta Selatan

      Indonesia

 

Auditor :

KAP Budiman, Wawan, Pamudji 7 Rekan (Eura Audit International)

 

Litigation :

No litigation record in our database

 

 

FINANCIAL FIGURE

 

Annual Sales :

2011 – US$   91.2 million

2012 – US$ 108.1 million

2013 – US$   91.5 million

 

Net Profit :

2011 – US$      37 thousands

2012 – US$ 3,132 thousands

2013 – US$ 3,770 thousands

           


 

Payment Manner :

Average

 

Financial Comments :

Satisfactory

 

 

KEY EXECUTIVES

 

Board of Management :

President Director                            - Mr. Benjamin Joseph Mitai

Directors                                         - a. Mr. Juanda Panjaitan, SE

                                                        b. Mr. Anwar Lawden, SH

                                                        c. Mr. Tjhi Min Sin

                                                        d. Mr. Drs. Leonard Hutabarat

                                                                                                  

Board of Commissioners :

President Commissioner                   - Mr. Roli Arifin

Commissioners                                - a. Mr. Drs. Sabam Leo Batubara

                                                        b. Mr. Lundu Panjaitan, SH, MA

                                                                                                           

Signatories :

President Director (Mr. Benjamin Joseph Mitai) or one of the Directors (Mr. Juanda Panjaitan, SE, Mr. Anwar Lawden, SH, Mr. Tjhi Min Sin or Mr. Drs. Leonard Hutabarat) which must be approved by Board of Commissioner

 

 

CAPABILITIES

 

Management Capability :

Satisfactory

 

Business Morality :

Good

 

 

OVERALL PERFORMANCE

 

Originally named P.T. INTI INDORAYON UTAMA, it was established in April 1983 with the authorized capital of Rp. 2,000,000,000 of which Rp. 1,250,000,000 was issued and Rp. 125,000,000 was paid up. The founding shareholders are Mr. Hakim Haryanto, Mr. Sukanto Tanoto AKA He Sui Hang AKA Lim Siu Hang (both are Indonesian businessmen of Chinese extraction), Mr. Ir. Semion Tarigan and Mr. Hendrik Mochamad Affandi (both indigenous businessmen). The company’s notarial act has been revised for a couple of times. In mid 1990, the company went public by selling its shares to public through Jakarta Stock Exchange (JSE). In April 1997, the company’s name was changed to P.T. INTI INDORAYON UTAMA Tbk. Later in November 2000 the company’s name was renamed to P.T. TOBA PULP LESTARI Tbk (P.T. TPL). Based on the report of daily newspaper Koran Tempo 16 August 2003, Mr. Wagimin Wongso is the former Vice President Director of P.T. TPLT and shareholder compositions are creditors and bond holders (40%), STEARN CAPITAL (30%) the founders and public of 30%.

 

In June 2006 the company’s authorized capital was increased again to Rp. 1,688,307,072,000 and an issued capital of Rp. 1,260,420,864,000.- was fully paid up. In July 2008, the issued capital was raised to Rp 1,406,922,560,000 fully paid up and concurrently whole shares of the company were controlled by PINNACLE COMPANY Ltd., of Seychelles, Bahamas (91.23%) and Publics (8.77%).

 

Latest in November 2009, the shareholders structure of the company are PINNACLE COMPANY Ltd., of Seychelles, Bahamas (88.45%) and Publics (11.55%). The latest according to the latest revision of notary deed Mrs. Gunawati, SH., no. 19 dated 31 October 2013 the composition of its shareholders has been changed to become PINNACLE COMPANY LIMITED (90.45%), UOB KAY HIAN PTE LTD, (5.53%) and Public (4.02%). The deed of amendments was approved by the Ministry of Law and Human Rights in its decision letter No. AHU-AH.01.10-50622 dated November 25, 2013.

 

P.T. TPL is developing a plant for the production of pulp and viscose rayon under PMDN (Domestic Capital Investment) facilities for which the final permit was issued by the Capital Investment Coordinating Board (BKPM) in December 1983. In 1990 the company’s status altered to Foreign Investment (PMA) scheme. The Plant is located in Porsea, Tobasa (North Sumatra) on a required land site of some 50 hectares. The development of P.T. TPL’s is carried-out in two stages. The first stage consisting of pulp industry equipped with a chemical formulating plant producing supported materials for P.T. TPL. Its first stage project has been in operation in 1989. In middle 1993 it had operated the second stage plant producing viscose rayons and equipped with supporting chemicals manufacturing plant. In March 1996 P.T. TPL started with operation to produce dissolving pulp (basic material of viscose rayon) by switching a number of machines. To support the above activities P.T. TPL controls 65,000 thousand hectares wide of forest and 269,060 hectares of industrial forestry (HTI).

 

In realization of the plant, the company was very arrogant in freeing land, regardless custom and traditions of the inhabitant. In freeing land, the company intimidated the people by hiring some military personels. Since its operation in 1989, (officially opened by the former President Soeharto), the plant has polluted the environment in radius of 40 Km from the plant by expeling stink as the result of pulp and rayon processing. Air pollution caused respiratory inspection of almost people surrounding the plant and acid rain in radius 40 Km from the plant causing rust, lot of livestocks killed and declining in farm production.

 

The people surrounding the plant filed a complaint to the government but the government paid no serious attention, even some of them were intimidated, caught and interrogated by military officers. In line with the fall of the President Soeharto’s government in mid-1998 there had been huge protest against the government in Medan and in Porsea, Balige and Tarutung (the capital of North Tapanuli) demanded to close down the operation of P.T. TPL.

 

In view of the people’s incessant demand, in March 1999 the President B.J Habibie used to stop temporary the operation of the plant lasted until the President Abdurahman Wahid’s government era. Later, in early 2001 the president allowed the plant to operate only for producing pulp. However, its operation was not running smoothly for infrastructure was blocked by the people causing slowness of raw materials flow. Based on available information that for producing 6000 tons paper porridge requires 3000 tons of woods as raw materials. For providing the raw materials, the company felled people’s forest and protected forest around Toba Lake and other regions in North Sumatra. Moreover, the company also gained the raw materials from Aceh, West Sumatra and Riau. The trucks transported raw materials damaged infrastructure of the villages in North Sumatra regions. The plant also exploited forest in Lake Toba causing a 4 m water decrease. P.T. Perusahaan Listrik Negara (PLN) said that its Hydro Powered Electricity (PLTA) Plant in Sigura – Gura using water of Asahan river from Toba Lake could not operate maximum. The company had been in commercial operation again in February 2003.

 

 

 

In August 2005, the Department of Forestry audited P.T. TPL to clear the allegation indicating that the company had used logs from forestry concession of others. Mr. R. Satrio Hutomo, a spokesman of P.T. TPL, said that P.T. TPL rejected the allegation because P.T. TPL always used logs from own forestry concession. P.T. TPL managed to fulfill logs for pulp industry from five forestry concession (HTI) sectors. P.T. TPL obtained a license to manage forestry concession of 269,060 hectares up to 2035. The trees being planted are eucalyptus sp spreading in five sectors including Aek Nauli, North Sumatra. The forestry concessions being managed by the company are able to provide 3 million of ready-planted seeds for replanting. Mr. Hutomo said that the company has annual production capacity of 200,000 tons of pulps requiring logs as the basic materials of 1.08 million cubic meters. Meanwhile, in 2005 based on the annual working plan (RKT), the department of forestry gave a license to cut down 1.26 million cubic meters of logs. The need of logs as the basic materials are fulfilled by 65,000 hectares of effective areas of its forestry concession areas out of 269,060 hectares. The forestry concession being managed by the company has been running smoothly with annual capacity of 18 – 30 cubic meters per hectare. According to the decree of the Minister of Forestry No. SK/354/2005 on approval and legalization on five year plan of forestry concession (HTI) benefit, P.T. TPL in 2004 – 2005 gained a license to provide a land of 50,792 hectares yearly to plant eucalyptus sp. If the data is correct, P.T. TPL still has over supply of logs of 18 million cubic meters remain.

 

P.T. Toba Pulp Lestari Tbk is an industrial producer of pulp or commonly known as pulp. Its production is sold in domestic market and abroad (exports). License capacity of 165 thousand tons / year with a 30% tolerance. Production last year (2012) to reach 178 676 tonnes. Some 90% of the company product is exported to China, Korea, Finland, Swedish, Australia and others while the rest of 10% is locally marketed.        

 

The national pulp and paper industries will be better in 2013 than in 2012. Market estimates of production and sales will be the norm. Additional capacity will continue price of pulp is still going up although with a slower rise in pulp price increases triggered by the low stock of pulp due to the hard efforts of pulp mills to reduce production, to balance the supply-demand, and the purchase of pulp on a large scale by China also triggered a rise in pulp prices. Ir. H. M. Mansur, Chairman of the Presidium APKI (Association of Indonesian Pulp and Paper) said the increased price of paper is not as big and as fast as the price of pulp, because the factories are not as intensive as paper pulp mills to reduce production, so that the paper stock in the world market is still quite great. Indonesia's pulp paper does not seem necessary to limit and reduce production because production will be absorbed by the market-domestic and export markets. Global crisis appears to have started over, things would be normal, production, consumption and prices will rise again. Indonesia has very good potential to be leader in the global pulp and paper industry due to its geographical location.

 

Indonesian Pulp and Paper Production, 2007 – 2013

                                                                                                                                                  (Tons)

Year

Pulp Production

Paper Production

2007

5,200,000

11,000,000

2008

5,900,000

    9,7000,000

2009

6,500,000

12,200,000

2010

7,900,000

12,900,000

2011

7,900,000

12,900,000

2012

8,216,000

13,416,000

2013

7,900,000

14,420,000

Sources: APKI (Indonesian Pulp and Paper Association

 

According to financial statement the total sales turnover of P.T. TPL in 2011 amounted at US$ 91.2 million with a net profit US$ 37 thousands increased to US$ 108.1 million with a net profit of US$ 3,132 thousands in 2012 and decreased to US$ 91.5 million with a net profit of US$ 3,770 thousands in 2013 and projected to go on rising by at least 6% in 2014. We observe that P.T. TPL is supported by foreign partner with has financially strong and sound behind it. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia). The company usually pays its debts punctually to suppliers. The financial highlight as per 31 December 2011, 2012 and 2013 is attached below.

 

                                                                                (In Thousands US$)

 

Descriptions

31 December

2013

2012

2011

A.  ASSETS

 

 

 

a. Current Assets

49.735

48.010

61.987

b. Non Current Assets

272.235

266.685

258.519

c. Other Assets

-

-

-

TOTAL ASSETS = TOTAL

LIABILITIES & EQUITY

321.970

314.695

320.506

B. LIABILITIES

    &STOCKHOLDERS EQUITY

 

 

 

a. Current Liabilities

77.409

65.930

53.019

b. Non Current Liabilities

117.805

125.779

141.369

c. Stockholder’s Equity :

- Paid Up Capital

     - Additional Paid Up Capital

     - Retained Earnings

Total Stock holder’s Equity

 

334.614

356.098

(563.956)

126.756

 

334.361

356.351

(567.726)

122.986

 

334.355

356.357

(564.594)

126.118

C. INCOME STATEMENT

 

 

 

a. Sales Net

91.552

108.146

91.189

b. Operating Income (loss)

(6.303)

(639)

(10.951)

c. Net Profit (loss)

3.770

(3.132)

37

               Notes: 31 December 2011, 2012 and 2013 by KAP Budiman, Wawan, Pamudi & Rekan

 

The management of P.T. TPL is led by Mr. Benjamin Joseph Mitai (62) a professional manager of Australia with experienced in pulp and viscose rayon industry. The company's management is handled by professional staff in the above business. They have wide relations with private businessmen within and outside the country. So far, we did not hear that the management of the company being filed to the district court for detrimental cases or involved in any business malpractices. The company’s litigation record is clean and it has not registered with the black list of Bank of Indonesia. P.T. TOBA PULP LESTARI Tbk is sufficiently fairly good for business transaction.

 

Attachment:

List of the ROYAL GOLDEN EAGLE or RGE Group Members

 

 

1.          ANDALAS INTI ESTATE, P.T. (Oil Palm Plantation)

2.          ASIA FORESTAMA RAYA, P.T. (Integrated Wood Based Industry)

3.          ASIAN AGRO ABADI OIL AND FATS LTD, British Virgin Island (Investment)

4.          ASIAN AGRO INTERNATIONAL LTD., Mauritius (Investment)

5.          ASIANAGRI HILIR, P.T. (Investment Holding and Management Trust)

6.          ASIANAGRO AGUNG JAYA, P.T. (Integrated Edible Vegetable Oil and Fats Manufacturing)

7.          ASIARAYA GLUESINDO SEMESTA, P.T. (Formaldyhde Industry)

8.          ASIARAYA HUTANI LESTARI, P.T. (Forestry)

9.          BAHIA SPECIALTY CELLULOSE, Brazil (Wood Fiber)

10.      DASA ANUGRAH MANDIRI, P.T. (Wood Based Industry)

11.      DASA ANUGRAH SEJATI, P.T. (Cocoa, Oil Palm and Rubber Plantation)

12.      FIRST ISLAND TRUST COMPANY LTD., Mauritius (Investment)

13.      GLOBAL ADVANCE OIL AND FATS, Macao (Investment)

14.      GUNUNG MELAYU INDUK, P.T. (Oil Palm Plantation)

15.      HARI SAWIT JAYA, P.T. (Oil Plam Plantation and Refinery)

16.      INDO SEPANDAN JAYA, P.T. (Oil Palm Plantation and Refinery)

17.      INTI INDOSAWIT SEJATI, P.T. (Oil Palm Plantation and Refinery)

18.      INTI INDOSAWIT SUBUR, P.T. (Oil Palm Plantation and Refinery)

19.      KALIMANTAN RIA SEJAHTERA, P.T. (Oil Palm Plantation and Refinery)

20.      KARYA DEWIPUTRA, P.T. (Oil Palm Plantation and Refinery)

21.      KATINGAN INDAH UTAMA, P.T. (Oil Palm Plantation)

22.      KESATUAN MAS ABADI, P.T. (Oil Palm Plantation)

23.      MATOA LESTARI JAYA, P.T. (Oil Palm Plantation)

24.      MITRA UNGGUL PUSAKA, P.T. (Oil Palm Plantation)

25.      NUSA PUSAKA KENCANA, P.T. (Oil Palm Plantation)

26.      PACIFIC OIL AND GAS INDONESIA, P.T. (LNG & LPG Processing, Oil and Gas Exploration)

27.      PEAK PULP & PAPER LTD, (ex APRIL) Bermuda, Schylless (Investment Holding)

28.      PEC-TECH ENGINEERING AND CONSTRUCTION PTE, LTD., Singapore (Engineering, Procurement and Contracting Services)

29.      PINNACLE COMPANY LTD, Singapore (Investment Holding)

30.      PRATAMA ENERGI KONSTRUKSI TEKOLOGY INDONESIA, P.T. (General Contracting and Investment Holding)

31.      RAJA GARUDA MAS SEJATI, P.T. (Oil Palm Plantation)

32.      RANTAU SINAR KARSA, P.T. (Oil Palm Plantation)

33.      RIAU ANDALAN KERTAS, P.T. (Paper Industry)

34.      RIAU ANDALAN PULP & PAPER, P.T. (Pulp and Paper Industry)

35.      RIAU PRIMA ENERGY, P.T. (Electric Power Plant Development)

36.      RIGUNAS AGRI UTAMA, P.T. (Oil Palm Plantation)

37.      ROYAL GOLDEN EAGLE, P.T. (Management Trust)

38.      SATERI (FUJIAN) CHEMICAL FIBRE, China (Viscose Staple Fiber)

39.      SATERI HOLDINGS LTD., China (Specialty Cellulose Producers)

40.      SATERI (JIANGRI) CHEMICAL FIBER, China (Viscose Staple Fiber)

41.      SAUDARA SEJATI LUHUR, P.T. (Oil Palm Plantation)

 

42.      SUPRA MATRA ABADI, P.T. (Oil Palm Plantation)

43.      SUPRA UNILAND UTAMA, P.T. (Office Building Management)

44.      TOBA PULP LESTARI Tbk, P.T. (Pulp and Viscose Rayon Industry)

45.      TRESTON INTERNATIONAL LTD., British Virgin Island, (Investment)

46.      TUNGGUL YUNUS ESTATE, P.T. (Oil Palm Plantation)

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.14

UK Pound

1

Rs.102.22

Euro

1

Rs.81.02

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

MNL

 

 

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.