MIRA INFORM REPORT

 

 

Report Date :

11.11.2014

 

IDENTIFICATION DETAILS

 

Name :

ELECON SINGAPORE PTE LTD

 

 

Registered Office :

10, Anson Road, 24-03, International Plaza, 079903

 

 

Country :

Singapore

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

21.07.2000

 

 

Com. Reg. No.:

200006402-R

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in the (as a / as an) engineering on power generation and palm oil.

 

 

No of Employees :

50 [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 – June 1, 2014

 

Country Name

Previous Rating

(31.03.2014)

Current Rating

(01.06.2014)

Singapore

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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.

:

200006402-R

COMPANY NAME

:

ELECON SINGAPORE PTE LTD

FORMER NAME

:

N/A

INCORPORATION DATE

:

21/07/2000

COMPANY STATUS

:

EXIST

LEGAL FORM

:

Private Limited

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

10, Anson Road, 24-03, International Plaza, 079903, Singapore.

BUSINESS ADDRESS

:

10, Anson Road, #24-03 International Plaza, 079903, Singapore.

TEL.NO.

:

65-62278258

FAX.NO.

:

65-62278942

CONTACT PERSON

:

PRAYASVIN BHANUBHAI PATEL ( DIRECTOR )

PRINCIPAL ACTIVITY

:

ENGINEERING ON POWER GENERATION AND PALM OIL

ISSUED AND PAID UP CAPITAL

:

897,854.00 ORDINARY SHARE, OF A VALUE OF SGD 897,854.00 

SALES

:

SGD 1,437,798 [2014]

NET WORTH

:

SGD 783,623 [2014]

STAFF STRENGTH

:

50 [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) engineering on power generation and palm oil.

 

Share Capital History

 

Date

Issue & Paid Up Capital

07/11/2014

SGD 897,854.00

 

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

 


Name

Address

IC/PP/Loc No

Shareholding

(%)

PRAYASVIN BHANUBHAI PATEL +

'HONEY HOUSE', BAKROL ROAD, VALLABH VIDYANAGAR, GUJARAT STATE, 388120, INDIA.

B1915611

10.00

0.00

ELECON ENGINEERING COMPANY LIMITED

ANAND- SOJITRA ROAD, VALLABH VIDYANAGAR, GUJARAT STATE, 388120, INDIA.

T04UF1474H

897,844.00

100.00

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

------

897,854.00

100.00

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

=====

 

+ Also Director

 





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

TARUNA PRAYASVIN PATEL

Address

:

HONEY HOUSE, BAKROL ROAD, VALLABH VIDYANAGAR, DISTRICT ANAND, GUJARAT STATE, 388120, INDIA.

IC / PP No

:

058242802

Nationality

:

AMERICAN

Date of Appointment

:

24/07/2006

 

DIRECTOR 2

 

Name Of Subject

:

SHAH VIPUKUMAR BHAGVANDAS

Address

:

255, COMPASSVALE ROAD, 11-690, 540255, SINGAPORE.

IC / PP No

:

S7063891F

Nationality

:

SINGAPOREAN

Date of Appointment

:

31/12/2008

 

DIRECTOR 3

 

Name Of Subject

:

PRAYASVIN BHANUBHAI PATEL

Address

:

'HONEY HOUSE', BAKROL ROAD, VALLABH VIDYANAGAR, GUJARAT STATE, 388120, INDIA.

IC / PP No

:

B1915611

Nationality

:

INDIAN

Date of Appointment

:

21/07/2000

 

MANAGEMENT

 

 

1)

Name of Subject

:

PRAYASVIN BHANUBHAI PATEL

Position

:

DIRECTOR

 

AUDITOR

 

Auditor

:

SMALLEY & SIMS PAC

Auditor' Address

:

N/A

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

EDNA PANSY LOW

IC / PP No

:

S1344941D

Address

:

416, SAUJANA ROAD, 07-58, 670416, SINGAPORE.

 

BANKING


No Banker found in our databank. 

 

ENCUMBRANCE (S)

 

Charge No

Creation Date

Charge Description

Chargee Name

Total Charge

Status

C20137222

20/12/2013

N/A

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

-

Unsatisfied

 

LITIGATION 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

Overseas

:

YES

Export Market

:

INDIA

 

OPERATIONS

 

Services

:

POWER GENERATION AND PALM OIL

 

Total Number of Employees:

YEAR

2014

GROUP

N/A

COMPANY

50

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) engineering on power generation and palm oil. 


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

:

65-62278258

Match

:

N/A

Address Provided by Client

:

N/A

Current Address

:

10, ANSON ROAD, #24-03 INTERNATIONAL PLAZA, 079903, SINGAPORE.

Match

:

N/A

 

Other Investigations


On 7th November 2014 we contacted one of the staff from the Subject and collect some information.


The Subject refused to disclose its bankers.



FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

3.06%

]

Profit/(Loss) Before Tax

:

Decreased

[

62.97%

]

Return on Shareholder Funds

:

Acceptable

[

13.23%

]

Return on Net Assets

:

Acceptable

[

16.91%

]

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

[

1 Days

]

Debtor Ratio

:

Favourable

[

46 Days

]

Creditors Ratio

:

Favourable

[

1 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

:

Favourable

[

2.20 Times

]

Current Ratio

:

Favourable

[

2.21 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

[

19.27 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 :

CONSTRUCTION

According to Building and Construction Authority (BCA), Construction sector in Singapore is expected to remain a strong demand of between SGD26-SGD32 billion in year 2013 boosted by stronger public housing and infrastructure construction works.

Public sector demand is expected to contribute about 53% of overall industry demand, or SGD14 billion-SGD17 billion. Major public sector projects to be awarded in 2013 include various contracts for the construction of Singapore's new Thomson train line, the expansion of the Kallang Paya Lebar Expressway and Tampines Expressway interchange as well as Nanyang Technological University's Undergraduate Halls of Residence at Nanyang Avenue/Crescent and Energy Market Authority's fourth storage tank for the liquefied natural gas (LNG) terminal at Jurong Island.

Private sector construction demand on the other hand, is expected to moderate to SGD12-SGD15 billion in 2013, in light of slower domestic economic growth and continued global economic uncertainties. Private residential construction demand is projected to continue to soften in view of the anticipated continual slow economic growth in 2013, coupled with the significant supply of completed housing units over the next few years.

Based on advance estimates, the construction sector grew by 5.9% on a year-on-year basis in fourth quarter of year 2012, moderating from the 7.7% growth in the preceding quarter. For the full year 2012, construction rose 8.8% from 2.6% the previous year. Besides, the total construction demand was sustained at a healthy SGD28.1 billion in 2012.

Moreover, the total preliminary construction output (progress payments made for work done) is estimated to be about SGD31 billion in 2012, about 7% higher than the volume in 2011 and comparable to the 2009's record high.

Forecast for 2014 and 2015, the average construction demand is projected to be SGD20-SGD28 billion per annum. Barring any unforeseen circumstances, this projection is plausible in view of the strong pipeline of housing and infrastructure construction projects planned by the Government to meet the needs of the population, despite the anticipated lower economic growth rate in the coming years.

OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2000, the Subject is a Private Limited company, focusing on engineering on power generation and palm oil. 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. The Subject is considered as a medium size company with issued and paid up capital standing at SGD 897,854. Having strong support from its shareholder has enabled the Subject to remain competitive despite the challenging business environment. 

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 is operating on a medium scale and it has approximately 50 employees in its business operations. 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 SGD 783,623, 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 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 normally.

 



PROFIT AND LOSS ACCOUNT

 

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

ELECON SINGAPORE PTE LTD

 

Financial Year End

2014-03-31

2013-03-31

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

SGD

SGD

TURNOVER

1,437,798

1,395,119

Other Income

91

16,395

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

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

Total Turnover

1,437,889

1,411,514

Costs of Goods Sold

(739,841)

(551,225)

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

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

Gross Profit

698,048

860,289

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

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

PROFIT/(LOSS) FROM OPERATIONS

125,602

339,159

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

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

PROFIT/(LOSS) BEFORE TAXATION

125,602

339,159

Taxation

(21,900)

49,600

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

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

PROFIT/(LOSS) AFTER TAXATION

103,702

388,759

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(217,933)

(606,692)

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

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

As restated

(217,933)

(606,692)

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(114,231)

(217,933)

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(114,231)

(217,933)

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

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

INTEREST EXPENSE (as per notes to P&L)

Loan from holding company

6,873

-

Others

-

9,257

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

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

6,873

9,257

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

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

 

 

 

 

BALANCE SHEET

 

ELECON SINGAPORE PTE LTD

 

ASSETS EMPLOYED:

FIXED ASSETS

17,480

14,642

Deferred assets

27,700

49,600

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

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

TOTAL LONG TERM INVESTMENTS/OTHER ASSETS

27,700

49,600

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

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

TOTAL LONG TERM ASSETS

45,180

64,242

Stocks

4,755

28,288

Trade debtors

181,064

140,652

Other debtors, deposits & prepayments

190,900

6,818

Short term deposits

114,170

-

Amount due from holding company

85,167

-

Amount due from related companies

87,365

-

Cash & bank balances

684,794

405,680

Amount owing by shareholders

-

562,444

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

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

TOTAL CURRENT ASSETS

1,348,215

1,143,882

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

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

TOTAL ASSET

1,393,395

1,208,124

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

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

CURRENT LIABILITIES

Trade creditors

2,697

25,533

Other creditors & accruals

173,980

5,043

Amounts owing to holding company

341,398

-

Amounts owing to related companies

91,697

-

Other liabilities

-

497,627

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

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

TOTAL CURRENT LIABILITIES

609,772

528,203

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

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

NET CURRENT ASSETS/(LIABILITIES)

738,443

615,679

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

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

TOTAL NET ASSETS

783,623

679,921

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

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

SHARE CAPITAL

Ordinary share capital

897,854

897,854

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

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

TOTAL SHARE CAPITAL

897,854

897,854

Retained profit/(loss) carried forward

(114,231)

(217,933)

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

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

TOTAL RESERVES

(114,231)

(217,933)

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

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

SHAREHOLDERS' FUNDS/EQUITY

783,623

679,921

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

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

783,623

679,921

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

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

 

 

 

 

FINANCIAL RATIO

 

ELECON SINGAPORE PTE LTD

 

TYPES OF FUNDS

Cash

798,964

405,680

Net Liquid Funds

798,964

405,680

Net Liquid Assets

733,688

587,391

Net Current Assets/(Liabilities)

738,443

615,679

Net Tangible Assets

783,623

679,921

Net Monetary Assets

733,688

587,391

BALANCE SHEET ITEMS

Total Borrowings

0

0

Total Liabilities

609,772

528,203

Total Assets

1,393,395

1,208,124

Net Assets

783,623

679,921

Net Assets Backing

783,623

679,921

Shareholders' Funds

783,623

679,921

Total Share Capital

897,854

897,854

Total Reserves

(114,231)

(217,933)

LIQUIDITY (Times)

Cash Ratio

1.31

0.77

Liquid Ratio

2.20

2.11

Current Ratio

2.21

2.17

WORKING CAPITAL CONTROL (Days)

Stock Ratio

1

7

Debtors Ratio

46

37

Creditors Ratio

1

17

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

0.00

Liabilities Ratio

0.78

0.78

Times Interest Earned Ratio

19.27

37.64

Assets Backing Ratio

0.87

0.76

PERFORMANCE RATIO (%)

Operating Profit Margin

8.74

24.31

Net Profit Margin

7.21

27.87

Return On Net Assets

16.91

51.24

Return On Capital Employed

16.91

51.24

Return On Shareholders' Funds/Equity

13.23

57.18

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.61.45

UK Pound

1

Rs.97.76

Euro

1

Rs76.68

 

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TPT

 


 

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

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NB

                                       New Business

 

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

 

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

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

 

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.