MIRA INFORM REPORT

 

 

Report Date :

07.11.2014

 

IDENTIFICATION DETAILS

 

Name :

QMAX FAR EAST PTE. LTD.

 

 

Registered Office :

514, Chai Chee Lane, 06-08, 469029

 

 

Country :

Singapore

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

10.01.2008

 

 

Com. Reg. No.:

200800828-R

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Subject is engaged in the (as a / as an) major serve for engineering and programming.

 

 

No of Employees :

15 [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 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 – 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.

:

200800828-R

COMPANY NAME

:

QMAX FAR EAST PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

10/01/2008

COMPANY STATUS

:

EXIST

LEGAL FORM

:

Private Limited

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

514, Chai Chee Lane, 06-08, 469029, Singapore.

BUSINESS ADDRESS

:

514 Chai Chee Lane #06-08, 469029, Singapore.

TEL.NO.

:

65-64449085

FAX.NO.

:

65-64449523

HP.NO.

:

6591266312

WEB SITE

:

WWW.QMAXTESTRESEARCH.COM

CONTACT PERSON

:

CHIA MU MAO ( DIRECTOR )

PRINCIPAL ACTIVITY

:

MAJOR SERVE FOR ENGINEERING AND PROGRAMMING

ISSUED AND PAID UP CAPITAL

:

100,000.00 ORDINARY SHARE, OF A VALUE OF SGD 100,000.00 

SALES

:

SGD 696,300 [2014]

NET WORTH

:

SGD 79,417 [2014]

STAFF STRENGTH

:

15 [2014]

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

FAIR

PAYMENT

:

AVERAGE

MANAGEMENT CAPABILITY

:

WEAK

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MATURE

 

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) major serve for engineering and programming.

The immediate holding company of the Subject is Q MAX TEST EQUIPMENTS PRIVATE LIMITED, a company incorporated in INDIA.

 

Share Capital History

 

Date

Issue & Paid Up Capital

04/11/2014

SGD 100,000.00

 

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

 


Name

Address

IC/PP/Loc No

Shareholding

(%)

Q MAX TEST EQUIPMENTS PRIVATE LIMITED

6, ELCOT AVENUE, I.T. HICHWAY SHOLINGANALLUR, CHENNAI, INDIA.

T08UF0575B

60,000.00

60.00

CHIA CHOR YAM @ CHIA CY

166, LENTOR LOOP, 09-01, BULLION PARK, 789097, SINGAPORE.

S0092696E

40,000.00

40.00

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

------

100,000.00

100.00

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

=====

 

+ Also Director

 





DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

SREENIVASAN RATHINA SABAPATHI

Address

:

3/135, V.V.V.SALAI, UTHANDI, EAST COAST ROAD, CHENNAI 119, 600119, INDIA.

IC / PP No

:

Z2394951

Nationality

:

INDIAN

Date of Appointment

:

10/01/2008

 

DIRECTOR 2

 

Name Of Subject

:

KENNETH CHIA MU MAO

Address

:

166, LENTOR LOOP, 09-01, BULLION PARK, 789097, SINGAPORE.

IC / PP No

:

S8407054H

Nationality

:

SINGAPOREAN

Date of Appointment

:

02/11/2009



MANAGEMENT

 

 

1)

Name of Subject

:

CHIA MU MAO

Position

:

DIRECTOR

 

 

 

 

 

AUDITOR

 

Auditor

:

SAW MENG TEE & PARTNERS PAC

Auditor' Address

:

N/A

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

KOH HUI LIAK

IC / PP No

:

S0059247A

Address

:

842, SIMS AVENUE, 10-764, 400842, SINGAPORE.

 

BANKING


No Banker found in our databank. 

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation. 

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

[

]

Good 31-60 Days

[

]

Average 61-90 Days

[

X

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

CLIENTELE

 

Local

:

YES

Overseas

:

YES

 

OPERATIONS

 

Products manufactured

:

ELECTRICAL ROBOTIC, CIRCUIT BOARDS

 

Total Number of Employees:

YEAR

2014

GROUP

N/A

COMPANY

15

 

Branch

:

YES

Other Information:


The Subject is principally engaged in the (as a / as an) major serve for engineering and programming. 

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

:

65-64449085

Match

:

N/A

Address Provided by Client

:

BLK 514, CHAICHEE LANE NO. 06-08 BEDOK INDUSTRIAL ESTATE SINGAPORE

Current Address

:

514 CHAI CHEE LANE #06-08, 469029, SINGAPORE.

Match

:

NO

 

Other Investigations


On 6th November 2014 we contacted one of the staff from the Subject and collect some information.

The address provided is as per stated in the report.

FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Decreased

[

25.44%

]

Profit/(Loss) Before Tax

:

Decreased

[

448.75%

]

Return on Shareholder Funds

:

Unfavourable

[

(21.41%)

]

Return on Net Assets

:

Unfavourable

[

(21.41%)

]

The lower turnover could be due to the intense market competition.The Subject incurred losses during the year due to the inefficient control of its operating costs. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Nil

[

0 Days

]

Debtor Ratio

:

Unfavourable

[

93 Days

]

Creditors Ratio

:

Favourable

[

0 Days

]

As the Subject is a service oriented company, the Subject does not need to keep 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

[

1.53 Times

]

Current Ratio

:

Unfavourable

[

1.53 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

:

Nil

[

0.00 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The Subject's interest cover was nil as it did not pay any interest during the year. 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 :

The Subject's losses could be attributed to the lower turnover which in turn could be the result of unfavourable market conditions. 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. The Subject did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. 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 : FAIR

 

 

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 :

MANUFACTURING

The manufacturing sector contracted by 1.1% in the fourth quarter of 2012, led by declines in the electronics and precision engineering clusters. These clusters were weighed down by weak global demand for semiconductors and semiconductor-related equipment. For the whole year of 2012, the manufacturing sector grew by 0.1%, significantly lower than the 7.8% recorded in 2011 when the sector was boosted by a surge in the growth of the biomedical manufacturing cluster.

Output of the biomedical manufacturing cluster grew by 2.4% in the fourth quarter. The expansion was driven by the medical technology segment which grew by a healthy 9.2%, benefitting from robust export demand for medical devices. The pharmaceuticals segment also grew by a modest 1.1%. For 2012, the biomedical manufacturing cluster expanded by 9.9%. 

Output of the transport engineering cluster expanded by 4.9% in the fourth quarter. The aerospace segment grew by 6.2%, supported by higher demand for repair jobs from commercial airlines. Similarly, the marine & offshore engineering segment expanded by 5.0%, on the back of higher contributions from oil rig projects and oilfield equipment components. In the year 2012, the transport engineering cluster surged by 11%.

The output of the precision engineering cluster shrank by 1.3% in the fourth quarter. The decline was led by the 5.3% contraction in the machinery & systems segment, which saw weak export demand for semiconductor-related equipment. On the other hand, the precision modules & components segment grew by 2.9%, supported by higher production of optical instruments & photographic equipment and electronic connectors. In 2012, the precision engineering cluster expanded by 1.3%.

The general manufacturing cluster's output grew by 1.2% in the fourth quarter, driven by the 6.4% growth in the miscellaneous industries segment. The segment's growth was supported by higher production of batteries and constructionrelated materials. By contrast, the printing and food, beverages & tobacco segments declined by 6.4% and 1.3% respectively. For 2012, the general manufacturing cluster grew by 2.0%. 

The chemicals cluster's output grew by 7.7% in the fourth quarter. The petrochemicals and petroleum segments registered growth of 9.3% and 6.3% respectively, partly due to the low base from plant shutdowns in end of 2011. The specialty chemicals segment also expanded by 8.0% on the back of higher regional demand. For the year 2012, the chemicals cluster declined by 0.4%, primarily due to weak regional demand for specialty chemicals in the second and third quarter of 2012.

Output of the electronics cluster contracted by 10% in the fourth quarter, led by the semiconductors and computer peripherals segments which contracted by 13% and 15% respectively. By contrast, the data storage segment grew by 7.8%, mainly due to the low base in end of 2011 when floods in Thailand had disrupted the supply chain for data storage products. For the whole of 2012, the electronics cluster contracted by 11%. 

OVERALL INDUSTRY OUTLOOK : MATURE



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2008, the Subject is a Private Limited company, focusing on major serve for engineering and programming. 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. The Subject have a strong support from its holding company. However, the Subject does not have strong capital position of SGD 100, 000. Without a strong capital position, the business expansion opportunity of the Subject is limited. 


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. Being a small company, the Subject's business operation is supported by 15 employees. Overall, we regard that the Subject's management capability is weak. Without capable management, the Subject is unlikely to be successful and often contribute to unacceptable levels of accountability. Weak management can affect productivity, profitability, sales growth and ultimately can result in the failure of a business.

 
Due to the challenging market conditions, the Subject's business performance seems to be deteriorating and losses incurred. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. 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 79,417, 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. 


The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts.

 

The industry has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the Subject's growth prospect is very much depends on its capacity in sustaining its performance 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.

QMAX FAR EAST 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

696,300

933,858

Other Income

25

755

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

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

Total Turnover

696,325

934,613

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

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

PROFIT/(LOSS) FROM OPERATIONS

(17,005)

4,876

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

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

PROFIT/(LOSS) BEFORE TAXATION

(17,005)

4,876

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

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

PROFIT/(LOSS) AFTER TAXATION

(17,005)

4,876

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(3,578)

(8,454)

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

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

As restated

(3,578)

(8,454)

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(20,583)

(3,578)

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(20,583)

(3,578)

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

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

 

 

 

 

BALANCE SHEET

 

QMAX FAR EAST PTE. LTD.

 

ASSETS EMPLOYED:

FIXED ASSETS

405

809

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

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

TOTAL LONG TERM ASSETS

405

809

Trade debtors

178,117

168,838

Other debtors, deposits & prepayments

9,766

16,013

Amount due from holding company

14,010

-

Cash & bank balances

25,546

39,473

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

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

TOTAL CURRENT ASSETS

227,439

224,324

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

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

TOTAL ASSET

227,844

225,133

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

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

CURRENT LIABILITIES

Trade creditors

397

6,331

Other creditors & accruals

81,343

122,380

Amounts owing to holding company

66,687

-

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

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

TOTAL CURRENT LIABILITIES

148,427

128,711

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

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

NET CURRENT ASSETS/(LIABILITIES)

79,012

95,613

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

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

TOTAL NET ASSETS

79,417

96,422

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

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

SHARE CAPITAL

Ordinary share capital

100,000

100,000

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

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

TOTAL SHARE CAPITAL

100,000

100,000

Retained profit/(loss) carried forward

(20,583)

(3,578)

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

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

TOTAL RESERVES

(20,583)

(3,578)

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

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

SHAREHOLDERS' FUNDS/EQUITY

79,417

96,422

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

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

79,417

96,422

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

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

 

 

 

 

FINANCIAL RATIO

 

QMAX FAR EAST PTE. LTD.

 

TYPES OF FUNDS

Cash

25,546

39,473

Net Liquid Funds

25,546

39,473

Net Liquid Assets

79,012

95,613

Net Current Assets/(Liabilities)

79,012

95,613

Net Tangible Assets

79,417

96,422

Net Monetary Assets

79,012

95,613

BALANCE SHEET ITEMS

Total Borrowings

0

0

Total Liabilities

148,427

128,711

Total Assets

227,844

225,133

Net Assets

79,417

96,422

Net Assets Backing

79,417

96,422

Shareholders' Funds

79,417

96,422

Total Share Capital

100,000

100,000

Total Reserves

(20,583)

(3,578)

LIQUIDITY (Times)

Cash Ratio

0.17

0.31

Liquid Ratio

1.53

1.74

Current Ratio

1.53

1.74

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

0

Debtors Ratio

93

66

Creditors Ratio

0

2

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

0.00

Liabilities Ratio

1.87

1.33

Times Interest Earned Ratio

0.00

0.00

Assets Backing Ratio

0.79

0.96

PERFORMANCE RATIO (%)

Operating Profit Margin

(2.44)

0.52

Net Profit Margin

(2.44)

0.52

Return On Net Assets

(21.41)

5.06

Return On Capital Employed

(21.41)

5.06

Return On Shareholders' Funds/Equity

(21.41)

5.06

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.61.39

UK Pound

1

Rs.98.00

Euro

1

Rs.76.99

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.