MIRA INFORM REPORT

 

 

Report Date :

19.06.2014

 

IDENTIFICATION DETAILS

 

Name :

TAIYO INK INTERNATIONAL (SINGAPORE) PTE LTD

 

 

Registered Office :

133, New Bridge Road, 09-08, Chinatown Point, 059413

 

 

Country :

Singapore

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

07.10.1998

 

 

Com. Reg. No.:

199804887-M

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Wholesale of Chemicals and Chemical Products

 

 

No. of Employees :

8 [2014]

 

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)

Singapore

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

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 0.6% in 2009 as a result of the global financial crisis, but rebounded 15.1% 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.

:

199804887-M

COMPANY NAME

:

TAIYO INK INTERNATIONAL (SINGAPORE) PTE LTD

FORMER NAME

:

N/A

INCORPORATION DATE

:

07/10/1998

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

133, NEW BRIDGE ROAD, 09-08, CHINATOWN POINT, 059413, SINGAPORE.

BUSINESS ADDRESS

:

133 NEW BRIDGE ROAD #09-08 CHINATOWN POINT, 059413, SINGAPORE.

TEL.NO.

:

65-63721141

FAX.NO.

:

65-63721151

CONTACT PERSON

:

MASARU OKI ( DIRECTOR )

PRINCIPAL ACTIVITY

:

WHOLESALE OF CHEMICALS AND CHEMICAL PRODUCTS

ISSUED AND PAID UP CAPITAL

:

2,927,610.00 ORDINARY SHARE, OF A VALUE OF SGD 2,927,610.00

SALES

:

USD 20,105,352 [2013]

NET WORTH

:

USD 4,566,924 [2013]

STAFF STRENGTH

:

8 [2014]

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

STRONG

PAYMENT

:

PROMPT

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) wholesale of chemicals and chemical products.

 

The immediate holding company of the Subject is TAIYO HOLDINGS CO., LTD, a company incorporated in JAPAN.

 

Share Capital History

Date

Issue & Paid Up Capital

17/06/2014

SGD 2,927,610.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

TAIYO HOLDINGS CO., LTD

2-7-1, HAZAWA, NERIMA-KU, TOKYO, 176-8508, JAPAN.

T04UF0856

2,927,610.00

100.00

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

------

2,927,610.00

100.00

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

=====

+ Also Director

 

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

EIJI SATO

Address

:

ATAGO GREEN HILLS FOREST TOWER, 2-3-1-2707 ATAGO, MINATOKU, TOKYO, JAPAN.

IC / PP No

:

TH7519043

Nationality

:

JAPANESE

Date of Appointment

:

08/07/2010

 

DIRECTOR 2

 

Name Of Subject

:

MASARU OKI

Address

:

20, MARTABAN ROAD, 12-02 , DE PARADISO, 328644, SINGAPORE.

IC / PP No

:

G5345367N

Nationality

:

JAPANESE

Date of Appointment

:

05/06/2012



MANAGEMENT

 

 

1)

Name of Subject

:

MASARU OKI

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

DELOITTE & TOUCHE LLP

Auditor' Address

:

N/A

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

JENNIFER LEE SIEW JEE

IC / PP No

:

S1336064B

Address

:

2, ENG KONG ROAD, 599081, 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

[

X

]

Good 31-60 Days

[

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

Export Market

:

ASIA

Credit Term

:

N/A

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

 

OPERATIONS

 

Goods Traded

:

CHEMICALS AND CHEMICAL PRODUCTS

 

Total Number of Employees:

YEAR

2014

GROUP

N/A

COMPANY

8

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) wholesale of chemicals and chemical 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

:

65-63721141

Match

:

N/A

Address Provided by Client

:

133 NEW BRIDGEROAD, #09-08 CHINATOWN POINT SINGAPORE -059413

Current Address

:

133 NEW BRIDGE ROAD #09-08 CHINATOWN POINT, 059413, SINGAPORE.

Match

:

YES

 

Other Investigations


On 13th June 2014 we contacted one of the staff from the Subject and she provided some information.


FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Increased

[

5.50%

]

Profit/(Loss) Before Tax

:

Decreased

[

94.67%

]

Return on Shareholder Funds

:

Acceptable

[

17.84%

]

Return on Net Assets

:

Acceptable

[

20.42%

]

The higher turnover could be attributed to the favourable market condition.The Subject's profit fell sharply because of the high operating costs incurred. The Subject's management had generated acceptable return for its shareholders using its assets.

Working Capital Control

Stock Ratio

:

Favourable

[

13 Days

]

Debtor Ratio

:

Unfavourable

[

103 Days

]

Creditors Ratio

:

Favourable

[

12 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The Subject's debtors ratio was high. The Subject should tighten its credit control and improve its collection period. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Favourable

[

1.90 Times

]

Current Ratio

:

Favourable

[

2.07 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

:

Favourable

[

645.89 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. 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 :

Although the Subject's turnover had increased, its profits had declined over the same corresponding period. This could be due to the stiffer market competition and / or higher operating costs which lowered the Subject's profit margin. 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. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. 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 : STRONG

 

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

 

Major Economic Indicators :

2009

2010

2011

2012

2013

 

Population (Million)

4.98

5.08

5.18

5.31

5.40

Gross Domestic Products ( % )

(0.8)

14.5

4.9

1.3

3.7

Consumer Price Index

0.6

2.8

5.2

4.6

2.4

Total Imports (Million)

356,299.3

423,221.8

459,655.1

474,554.0

466,762.0

Total Exports (Million)

391,118.1

478,840.7

514,741.2

510,329.0

513,391.0

 

Unemployment Rate (%)

3.2

2.2

2.1

2.0

1.9

Tourist Arrival (Million)

9.68

11.64

13.17

14.49

15.46

Hotel Occupancy Rate (%)

75.8

85.6

86.5

86.4

86.3

Cellular Phone Subscriber (Million)

1.37

1.43

1.50

1.52

1.97

 

Registration of New Companies (No.)

26,414

29,798

32,317

31,892

37,288

Registration of New Companies (%)

4.3

12.8

8.5

(1.3)

9.8

Liquidation of Companies (No.)

22,393

15,126

19,005

17,218

17,369

Liquidation of Companies (%)

113.4

(32.5)

25.6

9.4

(5.3)

 

Registration of New Businesses (No.)

26,876

23,978

23,494

24,788

22,893

Registration of New Businesses (%)

8.15

(10.78)

2.02

5.51

1.70

Liquidation of Businesses (No.)

23,552

24,211

23,005

22,489

22,598

Liquidation of Businesses (%)

11.4

2.8

(5)

(2.2)

0.5

 

Bankruptcy Orders (No.)

2,058

1,537

1,527

1,748

1,992

Bankruptcy Orders (%)

(11.5)

(25.3)

(0.7)

14.5

14.0

Bankruptcy Discharges (No.)

3,056

2,252

1,391

1,881

2,584

Bankruptcy Discharges (%)

103.7

(26.3)

(38.2)

35.2

37.4

 

INDUSTRIES ( % of Growth ) :

Agriculture

Production of Principal Crops

3.25

(0.48)

4.25

3.64

-

Fish Supply & Wholesale

(1.93)

(10.5)

12.10

(0.5)

-

 

Manufacturing *

71.5

92.8

100.0

100.3

102.0

Food, Beverages & Tobacco

90.4

96.4

100.0

103.5

103.5

Textiles

145.9

122.1

100.0

104.0

87.1

Wearing Apparel

211.0

123.3

100.0

92.1

77.8

Leather Products & Footwear

79.5

81.8

100.0

98.6

109.8

Wood & Wood Products

101.4

104.0

100.0

95.5

107.4

Paper & Paper Products

95.4

106.1

100.0

97.4

103.2

Printing & Media

100.9

103.5

100.0

93.0

86.1

Crude Oil Refineries

96.4

95.6

100.0

99.4

93.5

Chemical & Chemical Products

80.3

97.6

100.0

100.5

104.1

Pharmaceutical Products

49.1

75.3

100.0

109.7

107.2

Rubber & Plastic Products

101.2

112.3

100.0

96.5

92.9

Non-metallic Mineral

91.9

92.5

100.0

98.2

97.6

Basic Metals

92.6

102.2

100.0

90.6

76.5

Fabricated Metal Products

90.8

103.6

100.0

104.3

105.1

Machinery & Equipment

57.3

78.5

100.0

112.9

114.5

Electrical Machinery

86.8

124.1

100.0

99.3

108.5

Electronic Components

85.2

113.6

100.0

90.6

94.3

Transport Equipment

96.0

94.0

100.0

106.3

107.5

 

Construction

(36.9)

14.20

20.50

28.70

-

Real Estate

1.4

21.3

25.4

31.9

-

 

Services

Electricity, Gas & Water

1.70

4.00

7.00

6.30

-

Transport, Storage & Communication

3.90

12.80

7.40

5.30

-

Finance & Insurance

(16.4)

(0.4)

8.90

0.50

-

Government Services

4.50

9.70

6.90

6.00

-

Education Services

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 1998, the Subject is a Private Limited company, focusing on wholesale of chemicals and chemical products. Having been in the industry for over a decade, the Subject has achieved a certain market share and has built up a satisfactory reputation in the market. It should have received supports from its regular customers. 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 8 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


Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. Return on shareholders' funds of the Subject was at an acceptable range which indicated that the management was efficient in utilising its funds to generate income. 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 4,566,924, 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.


We regard that the Subject's overall payment habit is prompt. The Subject had a favourable creditors' ratio as evidenced by its favourable collection days


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 promptly.

 



 

 

PROFIT AND LOSS ACCOUNT

 

 

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

 

Financial Year End

2013-03-31

2012-03-31

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

20,105,352

19,057,367

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

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

Total Turnover

20,105,352

19,057,367

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

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

PROFIT/(LOSS) FROM OPERATIONS

933,163

17,517,485

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

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

PROFIT/(LOSS) BEFORE TAXATION

933,163

17,517,485

Taxation

(118,196)

(76,100)

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

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

PROFIT/(LOSS) AFTER TAXATION

814,967

17,441,385

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

4,539,899

5,098,514

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

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

As restated

4,539,899

5,098,514

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

5,354,866

22,539,899

DIVIDENDS - Ordinary (paid & proposed)

(2,500,000)

(18,000,000)

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

2,854,866

4,539,899

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

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

Hire purchase

1,447

1,821

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

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

1,447

1,821

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

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

 


BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

37,170

38,755

Investments

4

4

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

4

4

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

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

TOTAL LONG TERM ASSETS

37,174

38,759

Stocks

730,617

1,123,022

Trade debtors

5,688,192

5,186,690

Other debtors, deposits & prepayments

29,772

33,945

Short term deposits

-

522,352

Cash & bank balances

2,344,113

3,916,177

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

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

TOTAL CURRENT ASSETS

8,792,694

10,782,186

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

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

TOTAL ASSET

8,829,868

10,820,945

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

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

CURRENT LIABILITIES

Trade creditors

640,133

396,476

Other creditors & accruals

88,902

131,547

Hire purchase & lease creditors

-

6,675

Amounts owing to related companies

3,379,877

3,916,902

Provision for taxation

143,254

106,610

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

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

TOTAL CURRENT LIABILITIES

4,252,166

4,558,210

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

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

NET CURRENT ASSETS/(LIABILITIES)

4,540,528

6,223,976

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

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

TOTAL NET ASSETS

4,577,702

6,262,735

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

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

SHARE CAPITAL

Ordinary share capital

1,712,058

1,712,058

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

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

TOTAL SHARE CAPITAL

1,712,058

1,712,058

Retained profit/(loss) carried forward

2,854,866

4,539,899

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

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

TOTAL RESERVES

2,854,866

4,539,899

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

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

SHAREHOLDERS' FUNDS/EQUITY

4,566,924

6,251,957

Deferred taxation

10,778

10,778

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

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

TOTAL LONG TERM LIABILITIES

10,778

10,778

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

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

4,577,702

6,262,735

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

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

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

2,344,113

4,438,529

Net Liquid Funds

2,344,113

4,438,529

Net Liquid Assets

3,809,911

5,100,954

Net Current Assets/(Liabilities)

4,540,528

6,223,976

Net Tangible Assets

4,577,702

6,262,735

Net Monetary Assets

3,799,133

5,090,176

BALANCE SHEET ITEMS

Total Borrowings

0

6,675

Total Liabilities

4,262,944

4,568,988

Total Assets

8,829,868

10,820,945

Net Assets

4,577,702

6,262,735

Net Assets Backing

4,566,924

6,251,957

Shareholders' Funds

4,566,924

6,251,957

Total Share Capital

1,712,058

1,712,058

Total Reserves

2,854,866

4,539,899

LIQUIDITY (Times)

Cash Ratio

0.55

0.97

Liquid Ratio

1.90

2.12

Current Ratio

2.07

2.37

WORKING CAPITAL CONTROL (Days)

Stock Ratio

13

22

Debtors Ratio

103

99

Creditors Ratio

12

8

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

0.00

Liabilities Ratio

0.93

0.73

Times Interest Earned Ratio

645.89

9,620.71

Assets Backing Ratio

2.67

3.66

PERFORMANCE RATIO (%)

Operating Profit Margin

4.64

91.92

Net Profit Margin

4.05

91.52

Return On Net Assets

20.42

279.74

Return On Capital Employed

20.42

279.44

Return On Shareholders' Funds/Equity

17.84

278.97

Dividend Pay Out Ratio (Times)

3.07

1.03

NOTES TO ACCOUNTS

Contingent Liabilities

0

0




FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.12

UK Pound

1

Rs.102.00

Euro

1

Rs.81.43

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NNA

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

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

 

Unlimited

71-85

Aa

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

 

Large

56-70

A

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

 

Fairly Large

41-55

Ba

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

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

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

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

--

NB

New Business

 

--

 

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

 

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

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

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

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