MIRA INFORM REPORT

 

 

Report Date :

17.05.2014

 

IDENTIFICATION DETAILS

 

Name :

ADANI WILMAR PTE. LTD.

 

 

Registered Office :

56, Neil Road, 088830

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

11.06.2009

 

 

Com. Reg. No.:

200910524-K

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in the general trading.

 

 

No. of Employees :

20 [2014]

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – 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.

:

200910524-K

COMPANY NAME

:

ADANI WILMAR PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

11/06/2009

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

56, NEIL ROAD, 088830, SINGAPORE.

BUSINESS ADDRESS

:

BUKIT PASOH SHOP HOUSES, 56, NEIL ROAD, 088830, SINGAPORE.

TEL.NO.

:

65-65764616

FAX.NO.

:

N/A

CONTACT PERSON

:

ARUP ROY ( DIRECTOR )

PRINCIPAL ACTIVITY

:

GENERAL TRADING

ISSUED AND PAID UP CAPITAL

:

7,600,000.00 ORDINARY SHARE, OF A VALUE OF USD 7,600,000.00

SALES

:

USD 483,991,051 [2012]

NET WORTH

:

USD 7,979,005 [2012]

STAFF STRENGTH

:

20 [2014]

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

N/A

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) general trading.

 

Share Capital History

Date

Issue & Paid Up Capital

15/05/2014

USD 7,600,000.00

 

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

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

WILMAR INTERNATIONAL LIMITED

56, NEIL ROAD, 088830, SINGAPORE.

199904785Z

3,800,000.00

50.00

ADANI GLOBAL PTE LTD

80, RAFFLES PLACE, 33-20, UOB PLAZA, 048624, SINGAPORE.

200003047N

3,800,000.00

50.00

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

------

7,600,000.00

100.00

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

=====

+ Also Director

 

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

 

Local No

Country

Company

(%)

As At

199308182D

SINGAPORE

LEVERIAN HOLDINGS PTE LTD

100.00

31/12/2012

ETHIOPIA

ADANI WILMAR AGRO INDUSTRIES PLC

98.00

31/12/2012



DIRECTORS


DIRECTOR 1

 

Name Of Subject

:

ARUP ROY

Address

:

11, NATHAN ROAD, 16-01, REGENCY PARK, 248732, SINGAPORE.

IC / PP No

:

S2770037C

Nationality

:

SINGAPOREAN

Date of Appointment

:

27/08/2013

 

DIRECTOR 2

 

Name Of Subject

:

STEPHEN HO KIAM KONG

Address

:

37, SIGLAP BANK, FRANKLE ESTATE, 456245, SINGAPORE.

IC / PP No

:

S1353729A

Nationality

:

SINGAPOREAN

Date of Appointment

:

01/01/2012



MANAGEMENT

 

 

1)

Name of Subject

:

ARUP ROY

Position

:

DIRECTOR

 

 

AUDITOR

 

Auditor

:

ERNST & YOUNG LLP

Auditor' Address

:

N/A

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

NG MUN CHEING @ WU WENJING

IC / PP No

:

S7131633E

Address

:

27, MARINE CRESCENT, 20-03, MARINE CRESCENT VILLE, 440027, 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

:

N/A

Overseas

:

N/A


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


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

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

]

Good 31-60 Days

[

]

Average 61-90 Days

[

X

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

N/A

Overseas

:

N/A


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


OPERATIONS

 

Goods Traded

:

GENERAL

 

Total Number of Employees:

YEAR

2014


GROUP

N/A

COMPANY

20

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) general trading.


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

:

65-65764616

Match

:

N/A

Address Provided by Client

:

10 ANSON ROAD, HEX 34-16, INTERNATIONAL PLAZA, SINGAPORE 079903

Current Address

:

BUKIT PASOH SHOP HOUSES, 56, NEIL ROAD, 088830, SINGAPORE.

Match

:

NO

 

Other Investigations


On 14th May 2014 we contacted one of the staff from the Subject's registered office and she only provided limited information.

She is not aware of the address provided.


She refused to disclose the Subject's fax number.




FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Decreased

[

43.69%

]

Profit/(Loss) Before Tax

:

Decreased

[

(357.50%)

]

Return on Shareholder Funds

:

Unfavourable

[

8.42%

]

Return on Net Assets

:

Favourable

[

52.05%

]

The shrinking turnover could be the result of more entrants into the market which eroded the Subject's market share.The management had succeeded in turning the Subject into a profit making company. The profit could be due to better control of its operating costs and efficiency in utilising its resources. The unfavourable return on shareholders' funds could indicate that the Subject was inefficient in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Favourable

[

15 Days

]

Debtor Ratio

:

Favourable

[

1 Days

]

Creditors Ratio

:

Favourable

[

15 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. 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

:

Unfavourable

[

0.55 Times

]

Current Ratio

:

Unfavourable

[

1.19 Times

]

A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

Solvency

Interest Cover

:

Unfavourable

[

1.35 Times

]

Gearing Ratio

:

Unfavourable

[

1.03 Times

]

The Subject's interest cover was low. If its profits fall or when interest rate rises, it  may not be able to meet all its interest payment. The Subject was highly geared, thus it had a high financial risk. The Subject was dependent on loans to finance its business needs. In times of economic downturn and / or high interest rate, the Subject will become less profitable and competitive than other firms in the same industry, which are lowly geared. This is because the Subject has to service the interest and to repay the loan, which will erode part of its profits. The profits will fluctuate depending on the Subject's turnover and the interest it needs to pay.

Overall Assessment :

Although the Subject's turnover decreased, its losses also decreased during the year. This could be the result of more efficient control in its operating costs. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. If there is a fall in the Subject's profit or any increase in interest rate, the Subject may not be able to generate sufficient cash-flow to service its interest. The Subject's gearing level was high and its going concern will be in doubt if there is no injection of additional shareholders' funds in times of economic downturn and / or high interest rates.

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 :

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 2009, the Subject is a Private Limited company, focusing on general trading. Having been in business for more than 5 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. Having a strong shareholders' backing, the Subject has the advantage to compete with its rivals and it is expected to enjoy timely financial assistance should the needs arise. The capital standing of the Subject is fair


Being a small company, the Subject's business operation is supported by 20 employees. Overall, we regard that the Subject's management capability is average.


Despite the lower turnover, the Subject's pre-tax profit have increased compared to the previous year. 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. The high gearing ratio clearly implied that the Subject was supported by more debt than equity. Thus, the Subject is exposed to high financial risk.


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


We regard that the Subject's overall payment habit is average.


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.


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

GROUP

GROUP

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

USD

USD

TURNOVER

483,991,051

859,540,403

Other Income

250,882

289,033

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

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

Total Turnover

484,241,933

859,829,436

Costs of Goods Sold

(461,457,987)

(829,631,444)

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

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

Gross Profit

22,783,946

30,197,992

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

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

PROFIT/(LOSS) FROM OPERATIONS

1,236,538

(480,210)

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

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

PROFIT/(LOSS) BEFORE TAXATION

1,236,538

(480,210)

Taxation

(564,740)

(1,059,070)

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

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

PROFIT/(LOSS) AFTER TAXATION

671,798

(1,539,280)

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

810,504

2,349,784

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

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

As restated

810,504

2,349,784

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

1,482,302

810,504

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

1,482,302

810,504

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

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

INTEREST EXPENSE (as per notes to P&L)

Bank overdraft

28,010

18,484

Trust receipts

3,473,635

3,242,205

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

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

3,501,645

3,260,689

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

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

 

 

BALANCE SHEET

 

 

 

ASSETS EMPLOYED:

FIXED ASSETS

2,607,914

2,695,497

Deferred assets

171,921

154,095

Others

85,055

108,440

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

256,976

262,535

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

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

TOTAL LONG TERM ASSETS

2,864,890

2,958,032

Stocks

20,541,288

20,402,841

Trade debtors

1,157,015

58,534,421

Other debtors, deposits & prepayments

6,388,652

22,711,444

Short term deposits

69,982

22,131

Amount due from related companies

81,858

184,994,714

Cash & bank balances

10,012,203

1,740,276

Others

-

8,412,884

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

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

TOTAL CURRENT ASSETS

38,250,998

296,818,711

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

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

TOTAL ASSET

41,115,888

299,776,743

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

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

CURRENT LIABILITIES

Trade creditors

19,270,819

59,636,692

Other creditors & accruals

1,497,103

3,100,613

Bank overdraft

92,399

580,599

Short term borrowings/Term loans

-

81,475,000

Other borrowings

8,147,264

135,250,941

Amounts owing to related companies

-

161,315

Provision for taxation

3,005,518

2,743,863

Other liabilities

-

8,342,345

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

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

TOTAL CURRENT LIABILITIES

32,013,103

291,291,368

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

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

NET CURRENT ASSETS/(LIABILITIES)

6,237,895

5,527,343

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

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

TOTAL NET ASSETS

9,102,785

8,485,375

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

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

SHARE CAPITAL

Ordinary share capital

7,600,000

7,600,000

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

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

TOTAL SHARE CAPITAL

7,600,000

7,600,000

Exchange equalisation/fluctuation reserve

(1,103,297)

(1,067,382)

Retained profit/(loss) carried forward

1,482,302

810,504

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

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

TOTAL RESERVES

379,005

(256,878)

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

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

SHAREHOLDERS' FUNDS/EQUITY

7,979,005

7,343,122

Deferred taxation

802,414

871,600

Retirement benefits provision

321,352

270,639

Others

14

14

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

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

TOTAL LONG TERM LIABILITIES

1,123,780

1,142,253

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

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

9,102,785

8,485,375

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

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

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

10,082,185

1,762,407

Net Liquid Funds

9,989,786

1,181,808

Net Liquid Assets

(14,303,393)

(14,875,498)

Net Current Assets/(Liabilities)

6,237,895

5,527,343

Net Tangible Assets

9,102,785

8,485,375

Net Monetary Assets

(15,427,173)

(16,017,751)

BALANCE SHEET ITEMS

Total Borrowings

8,239,663

217,306,540

Total Liabilities

33,136,883

292,433,621

Total Assets

41,115,888

299,776,743

Net Assets

9,102,785

8,485,375

Net Assets Backing

7,979,005

7,343,122

Shareholders' Funds

7,979,005

7,343,122

Total Share Capital

7,600,000

7,600,000

Total Reserves

379,005

(256,878)

LIQUIDITY (Times)

Cash Ratio

0.31

0.01

Liquid Ratio

0.55

0.95

Current Ratio

1.19

1.02

WORKING CAPITAL CONTROL (Days)

Stock Ratio

15

9

Debtors Ratio

1

25

Creditors Ratio

15

26

SOLVENCY RATIOS (Times)

Gearing Ratio

1.03

29.59

Liabilities Ratio

4.15

39.82

Times Interest Earned Ratio

1.35

0.85

Assets Backing Ratio

1.20

1.12

PERFORMANCE RATIO (%)

Operating Profit Margin

0.26

(0.06)

Net Profit Margin

0.14

(0.18)

Return On Net Assets

52.05

32.77

Return On Capital Employed

51.53

30.67

Return On Shareholders' Funds/Equity

8.42

(20.96)

Dividend Pay Out Ratio (Times)

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0





 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.58.86

UK Pound

1

Rs.98.82

Euro

1

Rs.80.72

 

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.