MIRA INFORM REPORT

 

 

Report Date :

12.05.2014

 

IDENTIFICATION DETAILS

 

Name :

FIRST SOLAR FE HOLDINGS PTE. LTD.

 

 

Registered Office :

10, Collyer Quay, 10-01, Ocean Financial Centre, 049315

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

10.01.2007

 

 

Com. Reg. No.:

200700550-Z

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in the investment holding

 

 

No. of Employees :

Not Available

 

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 but correct

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.

:

200700550-Z

COMPANY NAME

:

FIRST SOLAR FE HOLDINGS PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

10/01/2007

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

10, COLLYER QUAY, 10-01, OCEAN FINANCIAL CENTRE, 049315, SINGAPORE.

BUSINESS ADDRESS

:

10 COLLYER QUAY #10-01 OCEAN FINANCIAL CENTRE, 049315, SINGAPORE.

TEL.NO.

:

65-65312494

FAX.NO.

:

N/A

CONTACT PERSON

:

LIAN KIM SENG ( DIRECTOR )

PRINCIPAL ACTIVITY

:

INVESTMENT HOLDING

ISSUED AND PAID UP CAPITAL

:

100,000,001.00 ORDINARY SHARE, OF A VALUE OF USD 100,000,001.00

SALES

:

N/A

NET WORTH

:

USD 131,041,000 [2012]

STAFF STRENGTH

:

N/A

BANKER (S)

:

AXIS BANK LIMITED SINGAPORE BRANCH

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL 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) investment holding.

 

The immediate and ultimate holding company of the Subject is FIRST SOLAR, INC, a company incorporated in UNITED STATES.

 

Share Capital History

Date

Issue & Paid Up Capital

09/05/2014

USD 100,000,001.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

FIRST SOLAR, INC

350, WEST WASHINGTON STREET, SUITE 600, TEMPE, ARIZON, 85281, UNITED STATES.

011156

100,000,001.00

100.00

 

 

 

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

------

 

 

 

100,000,001.00

100.00

 

 

 

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

=====

+ Also Director

 

The Subject's interest in other companies (Subsidiaries/Associates) are shown as follow :

 

Local No

Country

Company

(%)

As At

201024434E

SINGAPORE

FIRST SOLAR VIETNAM HOLDINGS PTE. LTD.

100.00

31/12/2012

 

 

 

 

 

 

CHINA

FIRST SOLAR (BEIJING) MANAGEMENT CONSULTANCY CO., LTD

100.00

31/12/2012

 

 

 

 

 

758827T

MALAYSIA

FIRST SOLAR MALAYSIA SDN. BHD.

100.00

11/02/2014

 

 

 

 

 

 

INDIA

FIRST SOLAR POWER INDIA PRIVATE LIMITED

99.99

31/12/2012

 

 

 

 

 



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

LIAN KIM SENG

Address

:

33, WEST COAST RISE, 12-23, MONTEREY PARK CONDOMINIUM, 127476, SINGAPORE.

IC / PP No

:

S2586702E

 

 

 

 

 

 

 

 

 

 

 

 

Date of Appointment

:

01/01/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 2

 

Name Of Subject

:

HO SOCK CHIN

Address

:

333, CLEMENTI AVENUE 2, 11-98, 120333, SINGAPORE.

IC / PP No

:

S1238565Z

 

 

 

 

 

 

 

 

 

Nationality

:

SINGAPOREAN

Date of Appointment

:

10/01/2007

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 3

 

Name Of Subject

:

MR. P'NG SOO HONG

Address

:

168-10-5, JALAN TANJUNG TOKONG, FETTES RESIDENCE, 11200 TANJONG TOKONG, PULAU PINANG, MALAYSIA.

 

 

 

New IC No

:

650630-07-5483

Date of Birth

:

30/06/1965

 

 

 

Nationality

:

MALAYSIAN

Date of Appointment

:

27/08/2009

 

 

 

 

 

 

 

 

 

 

 

 

 

DIRECTOR 4

 

Name Of Subject

:

DAVID THOMAS BRADY

Address

:

13343 N 101ST WAY SCOTTSDALE, AZ 85260, UNITED STATES.

IC / PP No

:

471185292

 

 

 

 

 

 

 

 

 

Nationality

:

AMERICAN

Date of Appointment

:

27/08/2009

 

 

 

 

 

 

 

 

 

 

 

 




MANAGEMENT

 

 

 

1)

Name of Subject

:

LIAN KIM SENG

 

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

BDO LLP

Auditor' Address

:

N/A

 

 

 

 

 

COMPANY SECRETARIES


No company secretary was found in our databank.



BANKING


Banking relations are maintained principally with :

1)

Name

:

AXIS BANK LIMITED SINGAPORE BRANCH

 

 

 

 

 

 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

C201401341

04/02/2014

N/A

AXIS BANK LIMITED SINGAPORE BRANCH

-

Unsatisfied

 

 

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

:

N/A

Overseas

:

N/A

 

 

 


The staff from the registered office refused to disclose the Subject's suppliers.



CLIENTELE

 

Local

:

N/A

 

 

 

Overseas

:

N/A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The staff from the registered office refused to disclose the Subject's clientele.

 

 

OPERATIONS

 

 

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) investment holding.


The staff from the registered office refused to disclose the Subject's operation.



CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-65312494

Match

:

N/A

 

 

 

Address Provided by Client

:

#10, COLLYER QUAY, NO 10-1, OCEAN FINANCIAL CENTRE, SINGAPORE 049315

Current Address

:

10 COLLYER QUAY #10-01 OCEAN FINANCIAL CENTRE, 049315, SINGAPORE.

Match

:

YES

Other Investigations


On 7th May 2014 we contacted one of the staff from the registered office and she only provided limited information.

She refused to disclose the Subject's number of employees and fax number.


The Subject does not generate any turnover as it is only an investment holding company.



FINANCIAL ANALYSIS

 

 

 

Overall Assessment :

The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. 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.

 

 

 

 

 

 

 

Overall financial condition of the Subject : POOR

 

 

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 :

ECONOMY

 

 

 

According to Ministry of Trade and Industry (MTI), the Singapore economy is expected to grow by 1.0 to 3.0% in 2013 as growth in the global economy is likely to remain subdued despite macroeconomic conditions stablising in recent months of 2013.

 

However, the global economic outlook is still clouded with uncertainties. Notably, concerns remain over the extent of the fiscal cutback with the budget sequester in the US and potential flareup of the debt crisis in the Eurozone. Should any of these risks materialise, Singapore's economic growth could come in lower than expected.

 

Although resilient domestic demand in emerging Asia will provide some support to global demand, it will not fully mitigate the effects of an economic slowdown in the advanced economies. Consequently, Singapore's externally-oriented sectors such as electronics and wholesale trade will continue to perform poorly, while the financial services sector will be affected by heightened uncertainties in the external environment. Nevertheless, there will be some modest support to growth from the biomedical manufacturing cluster and tourism-related sectors. The former will likely see increased production of active pharmaceutical ingredients and biologics while the latter will benefit from rising visitor arrivals from the region.

 

For the whole of 2012, Singapore's GDP growth slowed to 1.3%, from 5.2% in 2011, mainly due to weakness in the externally-oriented sectors. Manufacturing sector growth slowed sharply from 7.8% in the year 2011 to 0.1%. The hudge decline was largely due to a rebound in the output of the biomedical manufacturing and transport engineering clusters, which together helped to mitigate part of the fall in output in the electronics cluster. By contrast, the construction sector growth accelerated from 6.3% to 8.2% in 2012, due to the expansion in both public and private building activities.

 

Growth in the services producing industries also moderated to 1.2% in 2012, compared to 4.6% in 2011. This was mainly due to the slowdown in wholesale and retail trade, accommodation and food services as well as other services industries. In particular, the wholesale and retail trade sector contracted by 0.7%, compared to the 1.6% growth in year 2011. The accommodation and food services as well as other services industries posted lower gains of 2.8% and 0.1% respectively, compared to 8.2% and 6.3% in 2011.

 

For the whole of 2012, all sectors, except the wholesale and retail trade, contributed to growth. Business services was the largest contributor with 0.4 percentage-points, followed by construction with 0.3 percentage-points and transportation and storage at 0.2 percentagepoints. Besides, growth in total demand moderated to 2.4%, compared to 4.2% in 2011. Domestic demand was the key contributor to total demand growth, accounting for 2.2 percentage-points, or over 90 per cent, of the increase.

 

In 2012, total domestic demand rose by 9.7%, following the 6.5% increase in 2011. The growth in total domestic demand was broad-based across consumption, gross fixed capital formation (GFCF) and changes in inventories. The total consumption expenditure in 2012 grew slightly by 0.9%, easing from the 3.7% growth in 2011. Public consumption expenditure fell by 3.6%, reversing the 0.5% growth in 2011. Private consumption expenditure registered a 2.2% gain, moderating from the 4.6% increase in the preceding year.

 

Overall, the Singapore economy is expected to grow by 1.0 to 3.0% in 2013.

 

 

 

OVERALL INDUSTRY OUTLOOK : MARGINAL GROWTH



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2007, the Subject is a Private Limited company, focusing on investment holding. 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 Subject is a large entity with strong capital position.

Overall, we regard that the Subject's management capability is average.


The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. Fortunately, 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 131,041,000, the Subject should be able to maintain its business in the near terms.


Without a strong assets backing, the Subject may face difficulties in getting loans for its future expansion and continued growth.


The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position in the market.

In view of the above, we recommend credit be granted to the Subject with close monitoring.

 



PROFIT AND LOSS ACCOUNT

 

 

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

 

Financial Year End

2012-12-31

2011-12-31

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

0

0

Other Income

4,650,000

158,150,000

 

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

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

Total Turnover

4,650,000

158,150,000

 

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

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

 

 

 

PROFIT/(LOSS) FROM OPERATIONS

(9,398,000)

51,571,000

 

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

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

PROFIT/(LOSS) BEFORE TAXATION

(9,398,000)

51,571,000

 

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

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

PROFIT/(LOSS) AFTER TAXATION

(9,398,000)

51,571,000

 

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

 

 

As previously reported

40,439,000

(132,000)

 

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

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

As restated

40,439,000

(132,000)

 

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

31,041,000

51,439,000

DIVIDENDS - Ordinary (paid & proposed)

-

(11,000,000)

 

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

31,041,000

40,439,000

 

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

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

 

 

 

Others

5,000

2,000

 

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

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

 

5,000

2,000

 

 

BALANCE SHEET

 

 

 

LONG TERM INVESTMENTS/OTHER ASSETS

 

 

Subsidiary companies

141,875,000

140,258,000

 

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

141,875,000

140,258,000

 

 

 

 

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

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

TOTAL LONG TERM ASSETS

141,875,000

140,258,000

 

 

 

Other debtors, deposits & prepayments

13,000

13,000

Amount due from subsidiary companies

41,000

41,000

Cash & bank balances

3,182,000

175,000

 

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

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

TOTAL CURRENT ASSETS

3,236,000

229,000

 

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

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

TOTAL ASSET

145,111,000

140,487,000

 

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

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

 

 

 

Other creditors & accruals

44,000

27,000

Amounts owing to holding company

1,000

1,000

Amounts owing to subsidiary companies

14,025,000

20,000

 

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

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

TOTAL CURRENT LIABILITIES

14,070,000

48,000

 

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

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

NET CURRENT ASSETS/(LIABILITIES)

(10,834,000)

181,000

 

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

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

TOTAL NET ASSETS

131,041,000

140,439,000

 

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

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

 

 

 

SHARE CAPITAL

 

 

Ordinary share capital

100,000,000

100,000,000

 

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

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

TOTAL SHARE CAPITAL

100,000,000

100,000,000

 

 

 

Retained profit/(loss) carried forward

31,041,000

40,439,000

 

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

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

TOTAL RESERVES

31,041,000

40,439,000

 

 

 

 

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

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

SHAREHOLDERS' FUNDS/EQUITY

131,041,000

140,439,000

 

 

 

 

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

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

 

131,041,000

140,439,000

 

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

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

 

 

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

 

 

Cash

3,182,000

175,000

Net Liquid Funds

3,182,000

175,000

Net Liquid Assets

(10,834,000)

181,000

Net Current Assets/(Liabilities)

(10,834,000)

181,000

Net Tangible Assets

131,041,000

140,439,000

Net Monetary Assets

(10,834,000)

181,000

BALANCE SHEET ITEMS

 

 

Total Borrowings

0

0

Total Liabilities

14,070,000

48,000

Total Assets

145,111,000

140,487,000

Net Assets

131,041,000

140,439,000

Net Assets Backing

131,041,000

140,439,000

Shareholders' Funds

131,041,000

140,439,000

Total Share Capital

100,000,000

100,000,000

Total Reserves

31,041,000

40,439,000

LIQUIDITY (Times)

 

 

Cash Ratio

0.23

3.65

Liquid Ratio

0.23

4.77

Current Ratio

0.23

4.77

WORKING CAPITAL CONTROL (Days)

 

 

Stock Ratio

0

0

Debtors Ratio

0

0

Creditors Ratio

0

0

SOLVENCY RATIOS (Times)

 

 

Gearing Ratio

0.00

0.00

Liabilities Ratio

0.11

0.00

Times Interest Earned Ratio

(1,878.60)

25,786.50

Assets Backing Ratio

1.31

1.40

PERFORMANCE RATIO (%)

 

 

Operating Profit Margin

0.00

0.00

Net Profit Margin

0.00

0.00

Return On Net Assets

(7.17)

36.72

Return On Capital Employed

(7.17)

36.72

Return On Shareholders' Funds/Equity

(7.17)

36.72

Dividend Pay Out Ratio (Times)

0.00

0.21

NOTES TO ACCOUNTS

 

 

Contingent Liabilities

0

0




 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.05

UK Pound

1

Rs.101.65

Euro

1

Rs.83.07

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.