MIRA INFORM REPORT

 

 

Report Date :

31.10.2014

 

IDENTIFICATION DETAILS

 

Name :

GM KOREA COMPANY

 

 

Formerly Known As :

GM DAEWOO AUTO & TECHNOLOGY COMPANY,

 

 

Registered Office :

233, Bupyeong-daero, Bupyeong-gu, Incheon, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

07.09.2002

 

 

Com. Reg. No.:

122-81-74534

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Passenger Motor Vehicles

 

 

No. of Employees :

16,956

 

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)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

SOUTH KOREA - ECONOMIC OVERVIEW

 

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion-dollar club of world economies, and is currently the world's 12th largest economy. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea's development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. South Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. South Korea's export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 and 2013 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The administration in 2014 is likely to face the challenge of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. The South Korean economy's long term challenges include a rapidly aging population, inflexible labor market, dominance of large conglomerates (chaebols), and heavy reliance on exports, which comprise about half of GDP

 

Source : CIA

 


Basic Information

 

Basic

 

Company Name

GM KOREA COMPANY

(Ex. Company Name : GM DAEWOO AUTO & TECHNOLOGY COMPANY, “지엠대우오토앤테크놀로지()”)

(Korean Company Name : “한국지엠()”)

Registered Address

233, Bupyeong-daero, Bupyeong-gu, Incheon, Korea

Building

 

Zip Code

403-857

Tel

+82-32-520-2114

Fax

+82-32-520-4658

E-mail

webmaster@gmdat.com

Website

www.gmdat.com

Trading Address

233, Bupyeong-daero, Bupyeong-gu, Incheon, Korea

(Old Address System : 199-1, Cheongcheon 2-dong, Bupyeong-gu, Incheon, Korea)

Tel

+82- 32-520-5147

Fax

+82-32- 520-4653

Other Address-Boryeong Factory

1227-1, Gwanchang-ri, Jugyo-myeon, Boryeong-si, Chungcheongnam-do, Korea

Tel

+82-41-939-5114

Fax

+82-41-931-2177

Other Address-Gunsan Factory

GM Daewoo Auto & Technology Company, 1589, Soryong-dong, Gunsan-si, Jeollabuk-do, Korea

Tel

+82-63-469-5114

Fax

+82-55-469-5177

Other Address-Changwon Factory

GM Daewoo Auto & Technology Company, 23, Seongju-dong, Changwon-si, Gyeongsangnam-do, Korea

Tel

+82-55-282-8456

Fax

+82-55-236-3339

Type

Export/Import

Industry

Manufacture of Passenger Motor Vehicles

  Main Business

Automobile, Automotive Parts

  Sub Business

 

Established (mm/dd/yyyy)

08/07/2002

The Subject owns the premises of registered HQ address, Boryeong Factory, Gunsan Factory and Changwon Factory.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Transportation components and systems(25170000)

Sell

Automobiles or cars(25101503)

 

 

 

CEO’s

 

Name

Sergio Hosha

Address

Suite 502, 66, Donggwang-ro 27-gil, Seocho-gu, Seoul, Korea

Date of Birth

05/21/1959

Title

President & CEO

Sex

Male

Nationality

Brazilian

 

Profiles

 

Capital (KRW)

166,322,885,200

Employees

16,956

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

Bank Details

Korea Development Bank

Woori Bank

Korea Exchange Bank

Shinhan Bank

Corporate Registered No.

120111-0294124

Business Registered No.

122-81-74534

Permit & Licenses

11/12/1993 ISO 9001 by TUV

 

12/2003 LACETTI: 1st-Rank in KP Quality Competitive Power

 

Int’l Trade No.: 421191

Shareholder Position

Name

Shares

%

GENERAL MOTORS INVESTMENT PTY LTD.(AUSTRALIA)

200,221,323

48.19

GM ASIA PACIFIC HOLDINGS, LLC.(AUSTRALIA)

39,673,859

9.55

GM AUTOMOTIVE HOLDINGS S.L.(SPAIN)

79,880,467

19.23

SHANGHAI AUTOMOTIVE INDUSTRY CORPORATION

25,000,000

6.02

KOREA DEVELOPMENT BANK(110135-0000937)

70,706,150

17.02

TOTAL

415,481,799

100.00

Company History

04/30/2002 Agreed on the Master Transaction Agreement(MTA) with General Motors    Corporation-USA, Daewoo Motor Company and Korea Development Bank

Master Transaction Agreement

08/07/2002 Incorporated as GM DAEWOO AUTO & TECHNOLOGY COMPANY(“지엠대우자동차기술()”)

09/23/2002 Increased the authorized shares to 500,000,000 shares from 1,200,000 KRW

10/17/2002 Acquired the assets and liabilities on the automobile division from Daewoo Motor Company

03/26/2003 Changed Korean company name to GM DAEWOO AUTO & TECHNOLOGY COMPANY(“지엠대우오토앤테크놀로지()”)

05/24/2004 Acquired the assets and liabilities on Auto Transmission Division from Daewoo Power Train Co., Ltd. based on Asset Purchase Agreement(APA)

10/27/2005 Acquired the assets and liabilities on the automobile manufacturing Division from Daewoo Incheon Motor Co., Ltd. based on Newco B Asset Transfer and Liability Assumption Agreement(ATA)

03/27/2007 increased capital to 101,245,084,400 KRW from 101,234,871,200 KRW

03/26/2008 Increased capital to 101,247,148,000 KRW from 101,245,084,400 KRW

10/28/2009 Increased capital to 166,322,885,200 KRW from 101,247,148,000 KRW

03/01/2011 Changed company name to the present name

10/22/2012 Decreased capital to 166,307,885,200 KRW from 166,322,885,200 KRW

11/05/2012 Increased capital to 166,322,885,200 KRW from 166,307,885,200 KRW

04/09/2013 Decreased the shares to 415,631,132 from 415,481,799

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Sergio Hosha

Male

Brazilian

03/01/2012

Director

Mr.

James Deluka

Male

USA

03/31/2014

Director

Mr.

Luk Bekers

Male

Netherlands

03/31/2014

Director

Mr.

Mathew Chen

Male

USA

02/10/2012

Director

Mr.

Cheng Jing Rey

Male

Chinese

03/26/2010

Outside Director

Mr.

Oh Jong-Nam

Male

Korean

03/26/2008

Outside Director

Mr.

Seo Seung-Il

Male

Korean

03/30/2011

Outside Director

Mr.

Kim Yu-Hoon

Male

Korean

03/31/2014

Outside Director

Mr.

Bang Young-Min

Male

Korean

03/28/2012

Auditor

Mr.

Kim Jong-Bum

Male

Korean

03/31/2014

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2013

15,603,936,931,252

9,036,317,610,542

100,987,255,008

2012

15,949,674,975,330

10,135,710,243,401

-108,080,212,704

2011

15,068,001,223,568

10,216,130,724,135

125,275,932,958

2010

12,597,422,293,147

7,827,531,121,227

585,550,732,137

2009

9,532,541,913,373

8,172,726,941,644

-343,746,932,232

2008

12,310,655,134,698

8,853,286,368,884

-875,693,902,083

2007

12,513,655,390,999

7,949,447,236,134

540,514,081,706

2006

9,604,122,251,066

7,315,424,424,889

601,715,007,785

2005

7,531,273,630,562

6,467,805,295,782

65,463,786,954

2004

6,051,631,125,618

5,957,769,453,806

-172,844,544,834

2003

4,276,923,438,455

4,580,976,549,986

-222,635,374,932

 

Financial Description

 

Authorized Capital(KRW)

200,000,000,000

Paid-Up Capital(KRW)

166,322,885,200

Total Issues Shares

415,631,132

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

9,036,317,610,542

10,135,710,243,401

10,216,130,724,135

Current Assets

4,258,012,245,559

4,586,517,665,271

5,027,845,490,921

-Quick Assets

2,971,425,690,496

3,207,117,228,891

3,265,424,690,041

-Inventories

1,286,586,555,063

1,379,400,436,380

1,762,420,800,880

Fixed Assets

4,778,305,364,983

5,549,192,578,130

5,188,285,233,214

-Investment

417,023,946,554

601,339,690,121

452,138,553,674

-Tangibles

4,303,841,247,832

4,428,690,911,920

4,312,972,107,109

-Intangibles

12,528,882,233

15,153,652,718

20,005,985,160

-Others

44,911,288,364

504,008,323,371

403,168,587,271

Total Liabilities

7,047,921,327,949

7,436,016,046,811

6,308,027,246,073

Current Liabilities

3,671,781,748,496

4,731,786,532,260

4,786,053,523,805

Fixed Liabilities

3,376,139,579,453

2,704,229,514,551

1,521,973,722,268

Capital Stock

166,322,885,200

166,322,885,200

166,322,885,200

Capital Surplus

1,098,517,864,021

1,096,321,892,982

2,584,492,117,582

Profit Surplus

-2,806,777,023

17,714,308,864

32,551,544,752

Capital Adjustment

726,362,310,395

1,419,335,109,544

1,124,736,930,528

Total Equity

1,988,396,282,593

2,699,694,196,590

3,908,103,478,062

Liab. & Shareholder’s Equity

9,036,317,610,542

10,135,710,243,401

10,216,130,724,135

 

Current Liabilities

3,671,781,748,496

4,731,786,532,260

4,786,053,523,805

Trade Payables

2,243,290,628,678

2,529,955,578,375

2,416,752,077,199

Short-Term Borrowings

-

489,595,437,834

318,007,764,013

Current Portion of Finance Lease Debts

2,021,817,459

6,608,422,325

8,896,516,788

Account Payables

452,242,711,823

512,708,965,695

746,897,709,054

Accrued Expenses

783,954,486,798

916,868,041,618

967,277,560,225

Advance Receipts

14,819,430,506

29,297,719,488

53,799,056,994

Unearned Income

49,802,547,746

76,461,446,102

40,392,178,982

Current Portion of Provision for Sales Guarantee

63,737,673,613

118,317,630,358

164,516,542,645

Derivatives

-

18,746,792,395

50,530,496,530

Others

61,912,451,873

33,226,498,070

18,983,621,375

Fixed Liabilities

3,376,139,579,453

2,704,229,514,551

1,521,973,722,268

Long-Term Borrowings

2,336,969,905,361

888,235,927,177

189,370,350,876

Finance Lease Debts

665,073,330

2,407,213,489

8,622,469,258

Long-Term Account Payables

25,026,834,445

813,929,987,135

198,558,092,719

Long-Term Guarantee Deposit Withhold

7,572,237,461

6,676,477,461

6,906,704,770

Long-Term Unearned Income

38,561,576,307

50,414,546,337

190,592,713,637

Provision for Recovery

1,852,833,436

1,651,253,341

1,472,961,994

Provision for Sales Guarantee

173,568,630,552

204,834,293,361

212,476,635,010

Provision for Severance & Retirement

878,207,618,778

828,393,071,894

819,465,365,634

 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

15,603,936,931,252

15,949,674,975,330

15,068,001,223,568

Cost of Sold Goods

13,529,077,091,730

15,105,356,327,400

13,699,885,753,043

Gross Profit

2,074,859,839,522

844,318,647,930

1,368,115,470,525

Selling & Admin. Expenses

988,380,937,535

1,184,594,159,534

1,254,423,039,644

Operating Income

1,086,478,901,987

-340,275,511,604

113,692,430,881

Non-Operating Income

397,000,075,062

699,270,159,482

647,463,050,230

Non-Operating Expenses

750,794,180,546

475,452,277,103

583,216,107,200

Income Before Taxes

732,684,796,503

-116,457,629,225

177,939,373,911

Income Taxes Expenses

631,697,541,495

-8,377,416,521

52,663,440,953

Net Income

100,987,255,008

-108,080,212,704

125,275,932,958

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Cash Flows from Operating

495,971,563,673

630,068,144,088

682,193,626,689

-Net Income

100,987,255,008

-108,080,212,704

125,275,932,958

-Exp. without Cash Outflow

921,753,998,333

796,109,869,137

910,864,297,028

-Revenue without Cash Inflows

-101,642,232,843

-328,899,967,980

-208,551,709,543

-Changes in Asset/ & Liability

-425,127,456,825

270,938,455,635

-145,394,893,754

Cash Flows from Investing

-419,934,221,079

-619,945,077,418

-696,868,064,837

-Cash Inflow from Investing

14,730,527,528

31,986,459,749

52,093,964,298

-Cash Outflows for Investing

-434,664,748,607

-651,931,537,167

-748,962,029,135

Cash Flows from Financing

202,180,494,059

-198,974,654,661

170,387,214,918

-Cash Inflows from Financing

1,123,014,308,179

1,351,002,643,723

820,998,570,890

-Cash Outflows from Financing

-920,833,814,120

-1,549,977,298,384

-650,611,355,972

Increase/Decrease in Cash

278,217,836,653

-188,851,587,991

155,694,385,617

Cash at the Beginning of Year

226,727,355,748

415,578,943,739

259,884,558,122

Cash at the End of Year

504,945,192,401

226,727,355,748

415,578,943,739

 


 

Products, Technologies, Services Description

 

Main Products & Services

Automobile, Automotive Parts

 

1. MATIZ II: was developed in compliance with the latest European safety standards and 40% offset collision test criteria.

 

2. KALOS: The subcompact Kalos earned a four-star rating in a collision test conducted by Korea transportation Safety Authority.

 

3. LACETTI: was designed with safety, performance, engine efficiency, low noise and driving comfort in mind

 

4. REZZO: Rezzo's new top-of-the-line Diamond series offers imporved safety features such as an additional passenger seat airbag

 

5. MAGNUS: The 2004 Magnus has improved safety features and now offers benefits that were previously only available on the high-end L6 Magnus 2.5.

Annual Production(EA)

902,000 EA

Technologies Acquired

 

 

Trade Partners & Competitors

 

Suppliers

FINE ACE TECHNOLOGY CO., LTD.

853-10, OE-DONG, CHANGWON-CITY, GYEONGNAM-DO 641-020 KOREA

TEL: 82-55-239-3500 FAX: 82-55-264-9615

INDUSTRY: MANUFACTURE OF ALL OTHER SPECIAL PURPOSE MACHINERY, N.E.C.

 

DONG KWANG TECH CO., LTD.

681-1, JAKJEON 3-DONG, GYEYANG-GU, INCHEON 407-821 KOREA

TEL: 82-32-551-7611 FAX: 82-32-551-7613

INDUSTRY: MANUFACTURE OF PARTS AND ACCESSORIES FOR MOTOR VEHICLE BODY

 

MANDO CORPORATION

343-1, MANHO-RI, POSEUNG-MYEON, PYEONGTAEK-CITY, GYEOONGGI-DO 451-821 KOREA

TEL: 82-31-680-6114 FAX: 82-31-681-0151

INDUSTRY: MANUFACTURE OF OTHER PARTS AND ACCESSORIES FOR MOTOR VEHICLES

Customers

DAEWOO MOTOR SALES CORPORATION(120111-0005414) is in charge of the domestic sales of the subject company’s products as a Non-exclusive retailer, based on GM Daewoo Auto & Technology Company Retailer Agreement.

 

FABRYKA SAMOCHODOW OSOBOWYCH SPOLKA AKCYJNA(FSO) is manufacturing its products by purchasing the parts from the Subject Company according to Contract Assembly Agreement since 10/21/2006.

Competitors

HYUNDAI MOTOR COMPANY

KIA MOTORS CO., LTD.

RENAULT-SAMSUNG MOTOR COMPANY

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

GM KOREA CO., LTD.(110111-1713951)

GM AUTOWORLD KOREA CO., LTD.(110111-1590432)

GM EUROPE TREASURY COMPANY AB

GENERAL MOTORS CORP.

GENERAL MOTORS INVESTMENT PTY LTD.

GM ASIA PACIFIC HOLDINGS, LLC

GM AUTOMOTIVE HOLDINGS S.L.

SUZUKI MOTOR CORPORATION

SHANGHAI AUTOMOTIVE INDUSTRY CORPORATION

CHEVROLET AUSTRIA GMBH

GENERAL MOTORS DAEWOO AUTO AND TECHNOLOGY CIS LLC.

CHEVROLET NEDERLAND B.V.

CHEVROLET DEUTSCHLAND GMBH

CHEVROLET PORTUGAL, LDA.

CHEVROLET EURO PARTS CENTER B.V.

CHEVROLET FINLAND OY

CHEVROLET FRANCE SAS

CHEVROLET SOUTHEAST EUROPE KFT.

CHEVROLET ESPANA, S.A.

CHEVROLET ITALIA S.P.A.

CHEVROLET SVERIGE AB

CHEVROLET SUISSE SA

CHEVROLET UK LIMITED

VIETNAM DAEWOO MOTOR CO., LTD.

 

AMERICA SUZUKI MOTOR CORP.

GENERAL MOTORS CORP.

GENERAL MOTORS OF CANADA LIMITED

NORTH AMERICA INTERNATIONAL PRODUCT CENTER

SHANGHAI GENERAL MOTORS CO., LTD.

HOLDEN'S ENGINE COMPANY

SHANGHAI GM DONG YUE MOTORS

GENERAL MOTORS COLMOTORES S.A.

GENERAL MOTORS VENEZOLANA S.A.

HOLDEN LTD.

ADAM OPEL AG.

GENERAL MOTORS SOUTH AFRICA LTD.

GENERAL MOTORS CHILE S.A.

SGM DY POWER TRAIN COMPANY LTD.

GENERAL MOTORS INDIA PVT. LTD.

GENERAL MOTORS THAILAND LTD.

GENERAL MOTORS DEL ECUADOR S.A.

SAIC GM WULING AUTOMOBILE CO., LTD

GMSPO CANADA

CHEVROLET SALES THAILAND LTD.

GENERAL MOTORS AFRICA AND MIDDLE EAST

GENERAL MOTORS DE MEXICO

GM POWERTRAIN-GERMANY GMBH

VEHICLE SALES, SERVICE AND MARKETING

GM APO HOLDINGS LLC

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

CHEVROLET EUROPE GMBH

(100.0% held by the subject company)

 

CHEVROLET AUSTRIA GMBH

(100.0% held by the subject company)

 

GENERAL MOTORS DAEWOO AUTO AND TECHNOLOGY CIS LLC.

(100.0% held by the subject company)

 

CHEVROLET NEDERLAND B.V.

(100.0% held by the subject company)

 

CHEVROLET DEUTSCHLAND GMBH

(100.0% held by the subject company)

 

CHEVROLET PORTUGAL, LDA.

(100.0% held by the subject company)

 

CHEVROLET EURO PARTS CENTER B.V.

(100.0% held by the subject company)

 

CHEVROLET FINLAND OY

(100.0% held by the subject company)

 

CHEVROLET FRANCE SAS

(100.0% held by the subject company)

 

CHEVROLET SOUTHEAST EUROPE KFT.

(100.0% held by the subject company)

 

CHEVROLET ESPANA, S.A.

(100.0% held by the subject company)

 

CHEVROLET POLAND SP.Z O.O.

(100.0% held by the subject company)

 

CHEVROLET ITALIA S.P.A.

(100.0% held by the subject company)

 

CHEVROLET SVERIGE AB

(100.0% held by the subject company)

 

CHEVROLET SUISSE SA

(100.0% held by the subject company)

 

CHEVROLET OTOMOTIV TICARET LTD. STI.

(100.0% held by the subject company)

 

CHEVROLET UK LIMITED

(100.0% held by the subject company)

 

VIETNAM DAEWOO MOTOR CO., LTD.

(100.0% held by the subject company)

Corporate Ownership

GENERAL MOTORS COMPANY(GM)

GENERAL MOTORS INVESTMENT PTY LTD.

Major Shareholders

GENERAL MOTORS INVESTMENT PTY LTD.

Cooperative Enterprise

-Insured Company

SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078)

HYUNDAIMARINE&FIREINSURANCECO., LTD.(110111-0035893)

LIG INSURANCE CO., LTD.(110111-0017859)

 

- Working Capital Agreement with

KOREA DEVELOPMENT BANK(110135-0000937)

 

-Loan Agreement with

GM EUROPE TREASURY COMPANY AB

 

- Contract Assembly Agreement with

FABRYKA SAMOCHODOW OSOBOWYCH SPOLKA AKCYJNA(FSO)

 

Sales by Region (Activity & Markets)

 

Sales/ Unit : KRW

2013

2012

2011

Export

13,377,152,793,967

13,805,693,636,735

12,981,699,264,053

Domestic

2,226,784,137,285

2,143,981,338,595

2,086,301,959,515

Total

15,603,936,931,252

15,949,674,975,330

15,068,001,223,568

The Subject exports to USA.

 

Court Action

 

Case No.

Court

Plaintiff(s)/ Creditor(s)/ Applicant(s)

Defendant(s)/ Debtor(s)/ Respondent(s)

Cause

Amount (Million KRW)

Status

 

Supreme Court of Korea

-

The Subject Company

Salaries

941

2nd round is proceeding.

 

Seoul High Court

-

The Subject Company

Salaries

8,553

2nd round is proceeding.

 

Seoul District Court

-

The Subject Company

Salaries

10,282

1st round is proceeding.

 

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FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.46

UK Pound

1

Rs.98.21

Euro

1

Rs.77.45

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

NIS

 

               

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.