MIRA INFORM REPORT

 

 

Report Date :

12.11.2014

 

IDENTIFICATION DETAILS

 

Name :

TUMOSAN MOTOR VE TRAKTOR SANAYI A.S.

 

 

Formerly Known As :

ALCELIK CELIK YAPI INSAAT SANAYI VE TICARET A.S.

 

 

Registered Office :

Yesilkoy Mah. Ataturk Cad. No:10/2 Istanbul Dunya Ticaret Merkezi A3 Blok K:8 34149 Bakirkoy Istanbul

 

 

Country :

Turkey

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

23.09.2003

 

 

Com. Reg. No.:

505991

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacture and Trade of Tractors and Diesel Engine.

 

 

No. of Employees :

436

 

 

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)

Turkey

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

TURKEY - ECONOMIC OVERVIEW

 

Turkey's largely free-market economy is increasingly driven by its industry and service sectors, although its traditional agriculture sector still accounts for about 25% of employment. An aggressive privatization program has reduced state involvement in basic industry, banking, transport, and communication, and an emerging cadre of middle-class entrepreneurs is adding dynamism to the economy and expanding production beyond the traditional textiles and clothing sectors. The automotive, construction, and electronics industries are rising in importance and have surpassed textiles within Turkey's export mix. Oil began to flow through the Baku-Tbilisi-Ceyhan pipeline in May 2006, marking a major milestone that will bring up to 1 million barrels per day from the Caspian to market. Several gas pipelines projects also are moving forward to help transport Central Asian gas to Europe through Turkey, which over the long term will help address Turkey's dependence on imported oil and gas to meet 97% of its energy needs. After Turkey experienced a severe financial crisis in 2001, Ankara adopted financial and fiscal reforms as part of an IMF program. The reforms strengthened the country's economic fundamentals and ushered in an era of strong growth averaging more than 6% annually until 2008. Global economic conditions and tighter fiscal policy caused GDP to contract in 2009, but Turkey's well-regulated financial markets and banking system helped the country weather the global financial crisis and GDP rebounded strongly to around 9% in 2010-11, as exports returned to normal levels following the recession. Growth dropped to roughly 3-4% in 2012-13. Turkey's public sector debt to GDP ratio has fallen below 40%, and two rating agencies upgraded Turkey's debt to investment grade in 2012 and 2013. Turkey remains dependent on often volatile, short-term investment to finance its large current account deficit. The stock value of FDI reached nearly $195 billion at year-end 2013, reflecting Turkey's robust growth even in the face of economic turmoil in Europe, the source of much of Turkey's FDI. Turkey's relatively high current account deficit, domestic political uncertainty, and turmoil within Turkey's neighborhood leave the economy vulnerable to destabilizing shifts in investor confidence.

 

Source : CIA

 

NOTES

:

Address at your inquiry is the former address.

 

 

COMPANY IDENTIFICATION

 

 

NAME

:

TUMOSAN MOTOR VE TRAKTOR SANAYI A.S.

HEAD OFFICE ADDRESS

:

Yesilkoy Mah. Ataturk Cad. No:10/2 Istanbul Dunya Ticaret Merkezi A3 Blok K:8 34149 Bakirkoy Istanbul / Turkey

PHONE NUMBER

:

90-212-468 19 00

90-212-468 19 19

 

FAX NUMBER

:

90-212-465 28 91

 

WEB-ADDRESS

:

www.tumosan.com.tr

E-MAIL

:

tumosan@tumosan.com.tr

 

 

LEGAL STATUS AND HISTORY

 

 

TAX OFFICE

:

Buyuk Mukellefler

TAX NO

:

0500361601

REGISTRATION NUMBER

:

505991

REGISTERED OFFICE

:

Istanbul Chamber of Commerce

DATE ESTABLISHED

:

23.09.2003

ESTABLISHMENT GAZETTE DATE/NO

:

26.09.2003/5894

 

LEGAL FORM

:

Joint Stock Company

TYPE OF COMPANY

:

Private

AUTHORIZED CAPITAL

:

TL   500.000.000

PAID-IN CAPITAL

:

TL   115.000.000

HISTORY

:

Previous Name

:

Alcelik Celik Yapi Insaat Sanayi Ve Ticaret A.S.

Changed On

:

31.12.2010 (Commercial Gazette Date /Number 06.01.2011/ 7724)

Previous Registered Capital

:

TL 12.000.000

Changed On

:

23.09.2009 (Commercial Gazette Date /Number 28.09.2009/ 7405)

Previous Registered Capital

:

TL 55.000.000

Changed On

:

14.06.2010 (Commercial Gazette Date /Number 18.06.2010/ 7588)

Previous Registered Capital

:

TL 55.950.000

Changed On

:

23.05.2012 (Commercial Gazette Date /Number 29.05.2012/ 8078)

Previous Address

:

Maltepe Mah. Cayhane Sok. No:1/3 Topkapi Zeytinburnu - Istanbul

Changed On

:

05.10.2006 (Commercial Gazette Date /Number 10.10.2006/ 6660)

Previous Address

:

Havaalani Kavsagi Istanbul Ticaret Merkezi A-3 Blok K:8 Bakirkoy Istanbul

Changed On

:

03.10.2012 (Commercial Gazette Date /Number 09.10.2012/ 8170)

Previous Address

:

Yesilkoy Mah. Ataturk Cad. No:10/2 Kat:8 Bakirkoy - Istanbul

Changed On

:

23.05.2013 (Commercial Gazette Date /Number 28.05.2013/ 8329)

Other Changes

:

The paid-in capital was increased from TL 105.000.000 to TL 115.000.000

Changed On

:

27.12.2012 (Commercial Gazette Date /Number 02.01.2013/ 8227)

 

 

OWNERSHIP / MANAGEMENT

 

 

NOTES ON OWNERSHIP / MANAGEMENT

 

:

Quoted at Stock Exchange.

 

SHAREHOLDERS

:

Eregli Tekstil Turizm Sanayi Ve Ticaret A.S.

67,20 %

Mustafa Albayrak

1,74 %

Muzaffer Albayrak

1,74 %

Bayram Albayrak

1,74 %

Ahmet Albayrak

1,74 %

Kazim Albayrak

1,74 %

Nuri Albayrak

1,74 %

Hedef Girisim Sermayesi Yatirim Ortakligi A.S.

1,30 %

Others and Open to public

21,06 %

 

 

REMARKS ON SHAREHOLDERS

 

:

The firm has been quoted at stock exchange on 05.12.2012.

 

GROUP PARENT COMPANY

:

ALBAYRAK HOLDING A.S.

 

SISTER COMPANIES

:

AGA MADEN ISLETMECILIGI TURIZM SANAYI VE TICARET LTD. STI.

ALBAYRAK HOLDING A.S.

ALBAYRAK TOPLU TASIMA A.S.

ALBAYRAK TURIZM SEYAHAT A.S.

ALBAYRAK TURIZM SEYAHAT INSAAT TICARET A.S.

ALBAYRAK YAYIN HOLDING A.S.

ALBIL MERKEZI HIZMETLER VE TICARET A.S.

ASIST OTO KIRALAMA TURIZM TICARET A.S.

BAYFA GERI DONUSUM TURIZM TASIMACILIK SANAYI VE TICARET LTD. STI.

BAYHA ATIK YONETIMI VE TASIMACILIK A.S.

BIRLIKTE DAGITIM A.S.

BIRUN OTELCILIK A.S.

DIYALOG DERGI YAYINCILIGI A.S.

DOLU AKARYAKIT PAZARLAMA A.S.

EREGLI TEKSTIL TURIZM SANAYI VE TICARET A.S.

KADEME ATIK TEKNOLOJILERI SANAYI A.S.

NAKIL LOJISTIK A.S.

NET YAYINCILIK SANAYI VE TICARET A.S.

PIRI MEDYA A.S.

REKLAM PIRI MEDYA ILETISIM A.S.

SISTEM INSAAT TURIZM SANAYI VE TICARET LTD. STI.

SISTEMLI DAGITIM HIZMETLERI A.S.

TRABZON LIMAN ISLETMECILIGI A.S.

TUMOSAN DOKUM A.S.

VARAKA KAGIT URETIM A.S.

YENI SAFAK GAZETECILIK A.S.

YESIL ADAMLAR ATIK YONETIMI VE TASIMACILIK A.S.

 

BOARD OF DIRECTORS

:

Nuri Albayrak

Chairman

Bayram Albayrak

Vice-Chairman

Mehmet Faysal Gokalp

Member

Gulten Yalcin

Member

Mesut Muhammet Albayrak

Member

 

 

DIRECTORS

:

Kurtulus Ogun

General Manager

Nizamettin Cevik

Finance Director

 

 

OPERATIONS

 

 

BUSINESS ACTIVITIES

:

Manufacture and trade of tractors and diesel engine.

 

NACE CODE

:

DK.29.31

 

TRADEMARKS OWNED

:

Tumosan

 

NUMBER OF EMPLOYEES

:

436

 

NET SALES

:

99.801 TL Thousand

(2006) 

75.891 TL Thousand

(2007) 

57.634 TL Thousand

(2008) 

59.391.137 TL

(2009) 

182.415.809 TL

(2010) 

411.417.514 TL

(2011) 

291.562.395 TL

(2012) 

445.085 TL Thousand

(2013) 

220.118 TL Thousand

(01.01-30.06.2014) 

 

 

CAPACITY

:

Diesel Engine  (units/yr)

Tractor

(units/yr)

 

 

25.000

15.000

 

(2012)

25.000

15.000

 

(2013)

25.000

15.000

 

(2014)

 

 

 

 

PRODUCTION

:

(units)

 

 

 

6.611

 

 

(2012)

9.166

 

 

(2013)

4.765

 

 

(01.01-30.06.2014)

 

 

 

 

IMPORT VALUE

:

10.120.000 EUR

(2007)

3.083.000 EUR

(2008)

5.250.853 EUR

(2009)

12.100.000 EUR

(2010)

14.958.178 EUR

(2011)

 

 

 

IMPORT COUNTRIES

:

Italy

Germany

India

Denmark

U.K.

Mexico

 

MERCHANDISE IMPORTED

:

Fuel feed pump

Parts of tractors

 

EXPORT VALUE

:

8.789 TL Thousand

(2006)

2.527 TL Thousand

(2007)

1.847 TL Thousand

(2008)

2.010.340 TL

(2009)

3.370.135 TL

(2010)

5.534.851 TL

(2011)

7.590.857 TL

(2012)

5.111 TL Thousand

(2013)

9.411 TL Thousand

(01.01-30.06.2014)

 

 

EXPORT COUNTRIES

:

India

Italy

Northern Cyprus Turkish Republic

Jordan

Iraq

Pakistan

France

Romania

Algeria

Ireland

Middle East Countries

 

MERCHANDISE  EXPORTED

:

Diesel engine

Tractors

 

HEAD OFFICE ADDRESS

:

Yesilkoy Mah. Ataturk Cad. No:10/2 Istanbul Dunya Ticaret Merkezi A3 Blok K:8 34149 Bakirkoy  Istanbul / Turkey  (rented)

 

BRANCHES

:

Factory  :  Buyuk Kayacik Mah. Aksaray Cevre Yolu Cad. No:7/1 Selcuklu Konya/Turkey (owned) (82.358 sqm)

 

Branch Office  :  Resitpasa Mah. Istanbul Teknik Universitesi Teknokent Ari-3 No:2/C B 402 Isparta/Turkey

 

 

TREND OF BUSINESS

:

There was an upwards trend in 2013. There appears a decline at business volume in nominal terms in 1.1 - 30.6.2014.

SIZE OF BUSINESS

:

Giant

 

 

FINANCE

 

 

MAIN DEALING BANKS

:

Asya Katilim Bankasi Beylikduzu Branch

T. Finans Katilim Bankasi Bayrampasa Branch

T. Halk Bankasi Ankara Kurumsal Branch

T. Vakiflar Bankasi New York Branch

T.C. Ziraat Bankasi Galleria Branch

 

CREDIT FACILITIES

:

The subject company is making use of credit facilities.

 

PAYMENT BEHAVIOUR

:

We are informed about numerous payment delays in the former years some of which were resolved later on but no payment delays have come to our knowledge in the last years.

 

KEY FINANCIAL ELEMENTS

:

 

(2011) TL

(2012) TL

(2013) TL Thousand

(01.01-30.06.2014) TL Thousand

 

Net Sales

411.417.514

291.562.395

445.085

220.118

 

Profit (Loss) Before Tax

66.383.862

37.639.197

76.789

19.899

 

Stockholders' Equity

142.016.130

198.489.809

233.690

225.702

 

Total Assets

278.614.561

328.022.910

287.407

336.431

 

Current Assets

132.743.552

252.744.115

188.979

229.908

 

Non-Current Assets

145.871.009

75.278.795

98.428

106.523

 

Current Liabilities

123.240.954

124.871.919

50.582

107.810

 

Long-Term Liabilities

13.357.477

4.661.182

3.135

2.919

 

Gross Profit (loss)

90.633.692

53.600.096

97.141

35.928

 

Operating Profit (loss)

68.771.426

36.009.277

74.464

19.252

 

Net Profit (loss)

53.950.773

29.636.315

62.063

16.257

 

 

 

COMMENT ON FINANCIAL POSITION

 

Capitalization

High As of 30.06.2014

Liquidity

Insufficient As of 30.06.2014

Remarks On Liquidity

The unfavorable gap between average collection and average payable period has an adverse effect on liquidity.

 

The liquid assets consist mainly of receivables the amount of cash&banks or marketable securities (which are more liquid) are low.

 

Profitability

High Operating Profitability  in 2011

High Net Profitability  in 2011

High Operating Profitability  in 2012

High Net Profitability  in 2012

High Operating Profitability  in 2013

High Net Profitability  in 2013

Good Operating Profitability (01.01-30.06.2014)

High Net Profitability (01.01-30.06.2014)

 

Gap between average collection and payable periods

Unfavorable in 01.01-30.06.2014

General Financial Position

Passable

 

 

 

Incr. in producers’ price index

 

Average USD/TL

Average EUR/TL

Average GBP/ TL

 ( 2006 )

11,58 %

1,4309

1,7987

2,6377

 ( 2007 )

5,94 %

1,3075

1,7901

2,6133

 ( 2008 )

8,11 %

1,2858

1,8876

2,3708

 ( 2009 )

5,93 %

1,5460

2,1529

2,4094

 ( 2010 )

8,87 %

1,5128

2,0096

2,3410

 ( 2011 )

13,33 %

1,6797

2,3378

2,6863

 (01.01-30.09.2012)

3,34 %

1,8029

2,3233

2,8527

 ( 2012 )

2,45 %

1,7995

2,3265

2,8593

 ( 2013 )

6,97 %

1,9179

2,5530

3,0178

 (01.01-30.06.2014)

5,12 %

2,1608

2,9618

3,6153

 (01.01-31.10.2014)

8,22 %

2,1739

2,9177

3,6143

 

 

BALANCE SHEETS

 

 

 (31.12.2011 )  TL

 

 (31.12.2012 )  TL

 

 (31.12.2013 )  TL Thousand

 

 (30.06.2014 )  TL Thousand

 

CURRENT ASSETS

132.743.552

0,48

252.744.115

0,77

188.979

0,66

229.908

0,68

Not Detailed Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

Cash and Banks

288.474

0,00

22.021.785

0,07

5.354

0,02

1.676

0,00

Marketable Securities

0

0,00

0

0,00

242

0,00

70

0,00

Account Receivable

32.471.720

0,12

131.112.834

0,40

53.792

0,19

88.108

0,26

Other Receivable

0

0,00

0

0,00

131

0,00

0

0,00

Inventories

79.909.072

0,29

67.260.905

0,21

96.406

0,34

116.937

0,35

Advances Given

0

0,00

0

0,00

0

0,00

0

0,00

Accumulated Construction Expense

0

0,00

0

0,00

0

0,00

0

0,00

Other Current Assets

20.074.286

0,07

32.348.591

0,10

33.054

0,12

23.117

0,07

NON-CURRENT ASSETS

145.871.009

0,52

75.278.795

0,23

98.428

0,34

106.523

0,32

Not Detailed Non-Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

Long-term Receivable

60.975.839

0,22

0

0,00

6.056

0,02

6.149

0,02

Financial Assets

0

0,00

0

0,00

0

0,00

0

0,00

Tangible Fixed Assets (net)

84.298.123

0,30

74.507.535

0,23

84.571

0,29

91.275

0,27

Intangible Assets

528.805

0,00

418.512

0,00

7.801

0,03

9.090

0,03

Deferred Tax Assets

0

0,00

0

0,00

0

0,00

0

0,00

Other Non-Current Assets

68.242

0,00

352.748

0,00

0

0,00

9

0,00

TOTAL ASSETS

278.614.561

1,00

328.022.910

1,00

287.407

1,00

336.431

1,00

CURRENT LIABILITIES

123.240.954

0,44

124.871.919

0,38

50.582

0,18

107.810

0,32

Not Detailed Current Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

26.103.263

0,09

47.393.248

0,14

3.546

0,01

30.243

0,09

Accounts Payable

85.865.292

0,31

53.908.496

0,16

33.398

0,12

66.720

0,20

Loans from Shareholders

0

0,00

0

0,00

0

0,00

0

0,00

Other Short-term Payable

0

0,00

0

0,00

1.064

0,00

1.368

0,00

Advances from Customers

0

0,00

0

0,00

0

0,00

0

0,00

Accumulated Construction Income

0

0,00

0

0,00

0

0,00

0

0,00

Taxes Payable

2.283.955

0,01

7.838.393

0,02

4.319

0,02

2.220

0,01

Provisions

5.494.999

0,02

4.789.147

0,01

6.366

0,02

5.284

0,02

Other Current Liabilities

3.493.445

0,01

10.942.635

0,03

1.889

0,01

1.975

0,01

LONG-TERM LIABILITIES

13.357.477

0,05

4.661.182

0,01

3.135

0,01

2.919

0,01

Not Detailed Long-term Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

10.219.786

0,04

1.797.539

0,01

42

0,00

0

0,00

Securities Issued

0

0,00

0

0,00

0

0,00

0

0,00

Long-term Payable

0

0,00

0

0,00

0

0,00

0

0,00

Loans from Shareholders

0

0,00

0

0,00

0

0,00

0

0,00

Other Long-term Liabilities

1.833.905

0,01

1.280.702

0,00

1.054

0,00

650

0,00

Provisions

1.303.786

0,00

1.582.941

0,00

2.039

0,01

2.269

0,01

STOCKHOLDERS' EQUITY

142.016.130

0,51

198.489.809

0,61

233.690

0,81

225.702

0,67

Not Detailed Stockholders' Equity

0

0,00

0

0,00

0

0,00

0

0,00

Paid-in Capital

55.950.000

0,20

115.000.000

0,35

115.000

0,40

115.000

0,34

Cross Shareholding Adjustment of Capital

0

0,00

0

0,00

0

0,00

0

0,00

Inflation Adjustment of Capital

0

0,00

0

0,00

0

0,00

0

0,00

Equity of Consolidated Firms

0

0,00

0

0,00

0

0,00

1.650

0,00

Reserves

85.576

0,00

85.576

0,00

3.954

0,01

40.153

0,12

Revaluation Fund

39.371.136

0,14

65.612.760

0,20

52.673

0,18

52.642

0,16

Accumulated Losses(-)

-7.341.355

-0,03

-11.844.842

-0,04

0

0,00

0

0,00

Net Profit (loss)

53.950.773

0,19

29.636.315

0,09

62.063

0,22

16.257

0,05

TOTAL LIABILITIES AND EQUITY

278.614.561

1,00

328.022.910

1,00

287.407

1,00

336.431

1,00

 

REMARKS ON FINANCIAL STATEMENT

:

The financial statements of 2011, 2012 and 2013 of "Tumosan Motor ve Traktor Sanayi A.S." are not consolidated. But the financial statements of 01.01.-30.06.2014 of "Tumosan Motor ve Traktor Sanayi A.S." have been prepared by the consolidation of the financial statements of "Tumosan Dokum A.S. (70 %)".

 

 

 

INCOME STATEMENTS

 

 

(2011) TL

 

(2012) TL

 

(2013) TL Thousand

 

(01.01-30.06.2014) TL Thousand

 

Net Sales

411.417.514

1,00

291.562.395

1,00

445.085

1,00

220.118

1,00

Cost of Goods Sold

320.783.822

0,78

237.962.299

0,82

347.944

0,78

184.190

0,84

Gross Profit

90.633.692

0,22

53.600.096

0,18

97.141

0,22

35.928

0,16

Operating Expenses

21.862.266

0,05

17.590.819

0,06

22.677

0,05

16.676

0,08

Operating Profit

68.771.426

0,17

36.009.277

0,12

74.464

0,17

19.252

0,09

Other Income

9.373.072

0,02

36.337.447

0,12

8.643

0,02

2.442

0,01

Other Expenses

0

0,00

0

0,00

0

0,00

0

0,00

Financial Expenses

11.760.636

0,03

34.707.527

0,12

6.318

0,01

2.454

0,01

Minority Interests

0

0,00

0

0,00

0

0,00

659

0,00

Profit (loss) of consolidated firms

0

0,00

0

0,00

0

0,00

0

0,00

Profit (loss) Before Tax

66.383.862

0,16

37.639.197

0,13

76.789

0,17

19.899

0,09

Tax Payable

13.189.524

0,03

7.838.393

0,03

14.924

0,03

4.038

0,02

Postponed Tax Gain

756.435

0,00

-164.489

0,00

198

0,00

396

0,00

Net Profit (loss)

53.950.773

0,13

29.636.315

0,10

62.063

0,14

16.257

0,07

 

 

FINANCIAL RATIOS

 

 

(2011)

(2012)

(2013)

(01.01-30.06.2014)

LIQUIDITY RATIOS

 

Current Ratio

1,08

2,02

3,74

2,13

Acid-Test Ratio

0,27

1,23

1,18

0,83

Cash Ratio

0,00

0,18

0,11

0,02

ASSET STRUCTURE RATIOS

 

Inventory/Total Assets

0,29

0,21

0,34

0,35

Short-term Receivable/Total Assets

0,12

0,40

0,19

0,26

Tangible Assets/Total Assets

0,30

0,23

0,29

0,27

TURNOVER RATIOS

 

Inventory Turnover

4,01

3,54

3,61

1,58

Stockholders' Equity Turnover

2,90

1,47

1,90

0,98

Asset Turnover

1,48

0,89

1,55

0,65

FINANCIAL STRUCTURE

 

Stockholders' Equity/Total Assets

0,51

0,61

0,81

0,67

Current Liabilities/Total Assets

0,44

0,38

0,18

0,32

Financial Leverage

0,49

0,39

0,19

0,33

Gearing Percentage

0,96

0,65

0,23

0,49

PROFITABILITY RATIOS

 

Net Profit/Stockholders' Eq.

0,38

0,15

0,27

0,07

Operating Profit Margin

0,17

0,12

0,17

0,09

Net Profit Margin

0,13

0,10

0,14

0,07

Interest Cover

6,64

2,08

13,15

9,11

COLLECTION-PAYMENT

 

Average Collection Period (days)

81,77

161,89

48,41

154,16

Average Payable Period (days)

96,36

81,56

34,56

130,40

WORKING CAPITAL

9502598,00

127872196,00

138397,00

122098,00

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.61.55

UK Pound

1

Rs.97.53

Euro

1

Rs.76.48

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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.