MIRA INFORM REPORT

 

 

Report Date :

02.09.2014

 

IDENTIFICATION DETAILS

 

Name :

BIG SUN ENERGY TECHNOLOGY INC.

 

 

Registered Office :

No.458-9, Sinsing Rd., Hukou Township, Hsinchu County 303

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

19.05.2006

 

 

Com. Reg. No.:

28318416

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sales of solar cell 

 

 

No. of Employees

About 400 Employees

 

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)

Taiwan

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

TAIWAN - ECONOMIC OVERVIEW

 

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are other major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, and following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, Taiwan in July 2013 signed a free trade deal with New Zealand—Taipei’s first-ever with a country with which it does not maintain diplomatic relations—and in November inked a trade pact with Singapore. Negotiations continue on follow-on components of ECFA regarding trade in goods and a dispute resolution mechanism; a trade in services agreement is under review in the legislature. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 11.2% of the island's total population as of 2012. The island runs a large overall trade surplus largely because of its surplus with China, and its foreign reserves are the world's sixth largest, behind China, Japan, Saudi Arabia, Russia, and Switzerland. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Taiwan since 2009 has gradually loosened rules governing Chinese investment on the island, and has also secured greater market access for its investors in the mainland. In August 2012, Taiwan Central Bank signed a memorandum of understanding on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which could help develop Taiwan into a local RMB hub. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

Source : CIA

 

 

 


Contact Points

 

Company Name:

Big Sun Energy Technology Inc.

Supplied Name:

Big Sun Energy Technology Inc

Trading Address:

No.458-9, Sinsing Rd., Hukou Township, Hsinchu County 303, Taiwan (R.O.C.)

Supplied Address:

No. 458, Sinsing Rd, Hukou Township, Hsinchu Country 303

Telephone Number:

+886-3-598-0288

Fax Number:

+886-3-598-0299

E-mail:

sales@bigsun-energy.com

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

BIG SUN ENERGY TECHNOLOGY INC.

Registered Address:

No.458-9, Sinsing Rd., Hukou Township, Hsinchu County 303, Taiwan (R.O.C.)

Date of Foundation:

2006-5-19

Registration Number:

28318416

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 2,200,000,000 (USD 72,820,000)

(As of 2014.08, 1 NTD = 0.0331 USD)

Paid-up Capital:

NTD 1,568,195,670 (USD 51,907,277)

Legal Representatives:

Jiaqing Luo

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of solar cell 

Staff:

About 400 Employees

Listed at Stock Exchange:

Yes; (Public, TPE: 3566)

Date of Last Annual Return:

2012-10-8

 

 

History

 

Subject was incorporated on 2006-5-19 with registered number 28318416 as Joint Stock Company in Taiwan.

 

Subject listed on Taiwan stock exchange on 2010-3-18.

 

 

Corporate Structure

 

Factories

1

Name:

Zhongke Branch

Address:

No. 36, Houke S. Rd., Houli Dist., Taichung City 421, 42152, Taiwan (R.O.C.)

Date of Registration:

2011-6-29

Factory Registration Number:

93A00150

Factory Manager:

Jiaqing Luo

Status:

In Production

Date of Last Annual Return:

2012-12-6

Major Products:

264 Optoelectronic materials and components

2

Address:

No.458-9, Sinsing Rd., Hukou Township, Hsinchu County 303, Taiwan (R.O.C.)

Date of Registration:

2007-5-25

Factory Registration Number:

99700401

Factory Manager:

Jiaqing Luo

Status:

In Production

Date of Last Annual Return:

2007-5-25

Major Products:

264 Optoelectronic materials and components

282 Batteries

 

Branches

Name

Zhongke Branch

Registration Number

29182681

Address

No. 36, Houke S. Rd., Houli Dist., Taichung City 421, 42152, Taiwan (R.O.C.)

Date of Registration

2011-2-14

Status

Live Company

Manager Name

Jiaqing Luo

Date of Last Annual Return

2012-11-30

Telephone Number:

+886-4-2557-7699 

Fax Number:

+886-4-2557-7136

 

 

Shareholders

 

Major Shareholders

 

Name

Subscription Shares

Jiaqing Luo

10,302,513

Qinxian Zhu

931,000

Shangyuan Development Investment Co., Ltd (Liberated Translation)

933,944

Sun Creation Investment Co, Ltd (Liberated Translation)

580,481

Yaomin Lin

228,257

Wensheng Xiao

993,937

Yuanzhen Peng

673,139

Yuhe Chen

440,116

Mifu Zou

221,558

Quancai Huang

527,665

Maoyuan He

464,385

 

Shareholder Information:

1

Registered Name:

Shangyuan Development Investment Co., Ltd (Liberated Translation)

Registered Address:

3F., No.123, Ziqiang S. Rd., Zhubei City, Hsinchu County, Taiwan (R.O.C.)

Date of Foundation:

2008-8-29

Registration Number:

24226176

Registry:

MOEA Central Office

Registered Capital:

NTD 10,000,000 (USD 331,000)

(As of 2014.08, 1 NTD = 0.0331 USD)

Legal Representatives:

Yuzhen Luo

Legal Form:

Private Limited Liability Company

Date of Last Annual Return:

2010-1-19

2

Registered Name:

Sun Creation Investment Co, Ltd (Liberated Translation)

Registered Address:

3F., No.123, Ziqiang S. Rd., Zhubei City, Hsinchu County, Taiwan (R.O.C.)

Date of Foundation:

2011-3-1

Registration Number:

53360051

Registry:

MOEA Central Office

Registered Capital:

NTD 29,900,000 (USD 989,690)

(As of 2014.08, 1 NTD = 0.0331 USD)

Paid-up Capital:

NTD 29,900,000 (USD 989,690)

Legal Representatives:

Jiaqing Luo

Legal Form:

Joint Stock Company

Date of Last Annual Return:

--

 

 

Management Information

 

Core Management

 

Directors

1

Name

Jiaqing Luo

Position

Board Chairman

2

Name

Qinxian Zhu

Position

Director

3

Name

Shangyuan Development Investment Co., Ltd (Liberated Translation)

Position

Director

4

Name

Sun Creation Investment Co, Ltd (Liberated Translation)

Position

Director

5

Name

Yaomin Lin

Position

Director

6

Name

Wensheng Xiao

Position

Director

7

Name

Yuanzhen Peng

Position

Director

8

Name

Yuhe Chen

Position

Independent Director

9

Name

Renxi Ni

Position

Independent Director

10

Name

Mifu Zou

Position

Supervisor

11

Name

Quancai Huang

Position

Supervisor

12

Name

Maoyuan He

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 400 Employees

 

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

No.458-9, Sinsing Rd., Hukou Township, Hsinchu County 303, Taiwan (R.O.C.)

 

Production Information

 

Subject is engaged in manufacturing of solar cell and etc.

Subject has two factories in Taichung City, Taiwan for production.

Subject obtained the certifications of ISO 9001:2008, ISO 14000:2008 and OSHAS 18001.

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

F113110

Wholesales of battery

F213110

Retails of battery

F119010

Wholesales of electronic materials

F219010

Retails of electronic materials

F113010

Wholesales of machinery

F213080

Retails of machinery and equipment

F113030

Wholesales of precision instrument

F213040

Retails of precision instrument

F401010

International trading business.

IG03010

Serving of energy technologies

CC01090

Manufacturing of battery

CC01010

Manufacturing of machinery for electricity generation, electricity transmission and electricity distribution

CC01080

Manufacturing of electronic components.

ZZ99999

Besides licensed business, all other business items those are not banned or restricted.

 

It is introduced that subject purchases its components and etc both at home and abroad.

 

Sales Information

 

The subject is mainly engaged in sales of solar cell and etc.

Subject’s major products include Mono-Crystalline Silicon, Multi-Crystalline Silicon, iPV Solar Tracker and etc.

It is introduced that subject’s selling territory is in Germany, Italy, USA, Japan and etc.

It is introduced that subject’s major customers are manufacturers of products for new energy.

It is introduced that subject’s product are applied to lighting equipment and etc.

It is introduced that subject also provide OEM services.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Products

Components and etc

Payment Terms

Cash and T/T, etc

 

Import

Products

Components and etc

Payment Terms

L/C and T/T, etc

 

Sales

 

Domestic Markets

Product

Solar cell and etc.

Selling Terms

Cash and T/T, etc

 

Export

Product

Solar cell and etc.

Selling Terms

L/C and T/T, etc

 

 

Balance Sheet

 

Unit: NTD/000

Date

2012-12-31

2011-12-31

Assets

 

 

         Current Assets

 

 

          Cash and cash equivalents

220,133.00

335,626.00

          Accounts receivable - net

80,000.00

53,988.00

          Accounts receivable - related parties - net

89,218.00

55,342.00

          Other receivables

426.00

401.00

          Inventories

137,913.00

138,604.00

          Prepayments

48,744.00

90,357.00

          Other current assets

174,955.00

245,331.00

            Current assets

751,389.00

919,649.00

        Funds and Investments

 

 

            Equity investments under equity method

48,916.00

64,211.00

         Investments

48,916.00

64,211.00

            Funds and investments

48,916.00

64,211.00

        Fixed Assets

 

 

        Cost

 

 

          Buildings and structures

754,923.00

492,288.00

           Machinery and equipment

1,493,765.00

1,384,148.00

          Transportation equipment

1,023.00

1,023.00

          Transportation equipment

32,203.00

25,541.00

          Leased Assets

80,682.00

0.00

          Leashelod Improvements

225.00

225.00

          Other facilities

95,141.00

89,064.00

          Revaluation increment

0.00

0.00

          Cost and revaluation increment

2,457,962.00

1,992,289.00

          Accumulated depreciation

-749,299.00

-521,695.00

          Accumulated impairment – fixed assets

-10,302.00

-10,302.00

          Construction in process and prepayment for equipments

2,813.00

332,948.00

            Fixed assets

1,701,174.00

1,793,240.00

         Intangible Assets

 

 

          Computer software cost

6,189.00

8,324.00

            Intangible assets

6,189.00

8,324.00

         Other Assets

 

 

          Dormant Assets

2,327.00

2,961.00

         Guarantee deposits paid

19,851.00

6,101.00

          Deferred charges

2,549.00

3,432.00

          Deferred income tax assets - non current

14,856.00

6,359.00

          Other assets- others

164,562.00

266,764.00

            Other assets

204,145.00

285,617.00

            Assets

2,711,813.00

3,071,041.00

      Assets (USD)

89,761,010.30

101,651,457.10

        Liabilities and Stockholders' Equity

 

 

        Liabilities

 

 

        Current Liabilities

 

 

           Short-term borrowing

391,374.00

377,984.00

          Notes Payable

164.00

41,795.00

          Accounts payable

153,980.00

102,360.00

          Accrued expenses

64,278.00

42,822.00

          Other payables - related parties

639.00

19,660.00

          Other payables

6,053.00

9,397.00

          Payment in advance

1,472.00

54,941.00

       Long-Term Liabilities -Current Portion

255,563.00

159,567.00

          Other current liabilities

805.00

710.00

             Current liabilities

874,328.00

809,236.00

        Long term Liabilities

 

 

          Long-term borrowings

303,975.00

425,833.00

          Long-term notes and accounts payable

3,122.00

0.00

            Long-term borrowings

307,097.00

425,833.00

        Reserves

 

 

        Other Liabilities

 

 

          Other Liabilities-others

288.00

0.00

            Other liabilities

288.00

0.00

            Liabilities

1,181,713.00

1,235,069.00

        Stockholders' Equity

 

 

        Capital

 

 

          Common stock

1,568,196.00

1,568,196.00

          Advance receipts for common stock

0.00

0.00

        Capital Surplus

 

 

         Capital surplus - additional paid-in capital

554,292.00

554,292.00

          Capital surplus - long-term equity investments

243.00

5.00

          Capital surplus - employee stock option

8,270.00

8,270.00

            Capital surplus

562,805.00

562,567.00

        Retained Earnings

 

 

          Legal reserve

9,169.00

9,169.00

          Unappropriated retained earnings

-608,573.00

-303,555.00

            Retained earnings

-599,404.00

-294,386.00

        Stockholders' Equity and Other adjustmen

 

 

          Cumulative translation adjustments

-1,497.00

-405.00

          

0.00

0.00

            Equity adjustments

-1,497.00

-405.00

          Stockholders‘ equity

1,530,100.00

1,835,972.00

     Stockholders‘ equity (USD)

50,646,310.00

60,770,673.20

          Number of treasury stock acquired by the company and subsidiaries (unit: share)

0.00

0.00

          

0.00

0.00

(As of 2014.08, 1 NTD = 0.0331 USD)

 

 

Profit and Loss Account

 

Unit: NTD/000

Date

2012

2011

Sales

2,121,037.00

3,338,940.00

Sales (USD)

70,206,324.70

110,518,914.00

          Sales return

7,658.00

98,316.00

         Sales discounts and allowances

20,452.00

3,228.00

         Sales

2,092,927.00

3,237,396.00

           Operating income

2,092,927.00

3,237,396.00

            Cost of sales

2,188,253.00

3,252,177.00

           Operating costs

2,188,253.00

3,252,177.00

        Gross profit (loss) from operations

-95,326.00

-14,781.00

        Unrealized gain from inter-affiliate accounts

-2,413.00

-2,514.00

          Realized gain from inter-affiliate accounts

-2,514.00

0.00

          Selling expense

41,860.00

42,399.00

         General and administrative expenses

78,900.00

115,315.00

        Research and development expenses

32,369.00

38,879.00

          Operating expenses

153,129.00

196,593.00

         Operating income (loss)

-248,556.00

-208,860.00

        Non-Operating Income

 

 

           Interest income

764.00

1,668.00

             Gains on disposal of fixed assets

0.00

0.00

           Foreign exchange gains

2,092.00

3,186.00

          Rental Income

588.00

222.00

          Financial assets evaluation

0.00

0.00

           Miscellaneous income

5,426.00

12,650.00

          Non-operating revenues and gains

8,870.00

17,726.00

         Non-Operating Expenses

 

 

           Interest expense

25,320.00

10,301.00

          Investment Loss

34,441.00

46,460.00

          Fixed assets loss

0.00

0.00

          Foreign exchange loss

0.00

0.00

          Impairment loss

0.00

0.00

          Financial liability loss evaluation

0.00

0.00

          Miscellaneous disbursements

5,571.00

3,133.00

          Non-operating expenses and losses

65,332.00

59,894.00

         Income from continuing operations before income tax

-305,018.00

-251,028.00

          Income tax expense (benefit)

0.00

52,674.00

          Income from continuing operations

-305,018.00

-303,702.00

           Net income (loss)

-305,018.00

-303,702.00

      Net income (loss) (USD)

-10,096,095.80

-10,052,536.20

      Primary Earnings per Share

 

 

          Primary earnings per share

-1.95

-1.94

        Diluted earnings per share

 

 

          Diluted earnings per share

-1.95

-1.94

(As of 2014.08, 1 NTD = 0.0331 USD)

 

Cash Flows

 

Unit: NTD/000

Date

2012

2011

Cash Flows from Operating Activities - Indirect Method

 

 

 Net Income (Loss)

-305,018.00

-303,702.00

Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities

 

 

  Depreciation Expense

232,280.00

169,344.00

  Amortization Expense

5,282.00

11,319.00

  Bad debt charges listed (income)

3,402.00

0.00

  Share-based Compensation

0.00

0.00

 Loss (Gain) on Decline (Recovery) in Market Value, Scrap and Obsolescence of Inventories

-49,010.00

55,786.00

  Investment Loss (Income) Recognized under Equity Method)

34,441.00

46,460.00

  Fixed assets transfer charge

201.00

4,527.00

  Impairment Losses on Non  Financial Asset

0.00

1,049.00

 Changes in Operating Assets and Liabilities

 

 

   Decrease (Increase) in Notes Receivable

0.00

5,450.00

   Decrease (Increase) in Accounts Receivable

-29,414.00

106,422.00

   Decrease (Increase) in Accounts Receivable - Related Parties

-33,876.00

-43,847.00

   Decrease (Increase) in Other Receivables

-25.00

-284.00

     Decrease (Increase) in Inventories

151,654.00

52,263.00

   Decrease (Increase) in prepayments

41,613.00

1,388.00

   Decrease (Increase) in deferred income tax assets

-36.00

52,707.00

   Decrease (Increase) in deferred debits

101.00

-2,514.00

   Decrease (Increase) in other operating assets

10,982.00

5,900.00

   Decrease (Increase) in Notes Payable

-41,631.00

-5,726.00

   Increase (Decrease) in Accounts Payable

51,620.00

-90,650.00

     Increase (Decrease) in Accrued Expenses

21,456.00

-31,994.00

   Increase (Decrease) in Other Payable - Related Parties

9.00

0.00

   Increase (Decrease) in account collected in advance

-53,469.00

-69,188.00

   Increase (Decrease) in Other Current Liabilities

95.00

124.00

Increase (Decrease) in Other Current Liabilities

40,657.00

-35,166.00

Cash Flows from Investing Activities

 

 

 Acquisition of Investments Accounted for by Equity Method

-20,000.00

-75,000.00

 Purchase of Property, Plant and Equipment

-163,223.00

-805,767.00

 Proceeds from Disposal of Property, Plant and Equipment

0.00

209.00

 Decrease (Increase) in Refundable Deposits

-13,750.00

-708.00

 Increase in Deferred Charges

-1,196.00

-11,184.00

 Increase (Decrease) in Restricted Assets

59,243.00

51,036.00

 Purchase of Intangible Assets

0.00

0.00

 Increase (Decrease) in other assets

-7,874.00

0.00

 Net Cash Provided by (Used in) Investing Activities

-146,800.00

-841,414.00

Cash Flows from Financing Activities

 

 

Increase (Decrease) in Short-term borrowings

13,390.00

24,795.00

 Proceeds from Long-term Debt

-22,740.00

585,400.00

 Increment of cash

0.00

0.00

 Exercise of Employee Stock Options

0.00

300.00

 Cost of storage stock for returning 

0.00

0.00

 Exercise of Employee for storage stock

0.00

3,882.00

 Net Cash Provided by (Used in) Financing Activities

-9,350.00

614,377.00

Exchange Influence

0.00

0.00

Net Increase (Decrease) in Cash and Cash Equivalents

-115,493.00

-262,203.00

Cash and Cash Equivalents, Beginning of year

335,626.00

597,829.00

Cash and Cash Equivalents, End of year

220,133.00

335,626.00

Supplemental Cash Flow Information

 

 

 Interest Paid- Excluding Capitalized Interest

24,700.00

10,301.00

 Income Tax Paid

0.00

0.00

Investing Activities Non-Affecting Both Cash and Non-cash Items

 

 

 Long-term liabilities due within one year

255,563.00

0.00

 Transfer surplus capital increase

0.00

217,426.00

 cumulative translation adjustment

 

-1,092.00

-87.00

Investing Activities Affecting Both Cash and Non-cash Items

 

 

  Cash Paid for Acquisition of Property, Plant and Equipment

 

 

  Increase in Property, Plant and Equipment

140,849.00

822,689.00

  Increase (Decrease) in Payable for Equipment Purchased

22,374.00

-16,922.00

  Cash Paid for Acquisition of Property, Plant and Equipment

163,223.00

805,767.00

Note: The subject declined to offer the financial information for us, and we offered the subject’s financial figures of 2011 and 2012 obtained from public files for references.

 

 

Bankers

 

Name

The Chang Hwa Commercial Bank, Ltd

 

 

Public Record

 

Mortgage

 

1

Case Type:

Chattel Mortgage

Debtor Name:

Big Sun Energy Technology Inc.

Creditor Name:

Chailease Finance Co., Ltd., Hsinchu Branch

Document Number:

10331042110

Date of Registration:

2014-7-22

2

Case Type:

Chattel Mortgage

File No.:

107331

Debtor Name:

Big Sun Energy Technology Inc.

Document Number:

10231309390

Date of Registration:

2013-2-22

3

Case Type:

Conditional Sale

File No.:

041181

Debtor Name:

Big Sun Energy Technology Inc.

Document Number:

10331006990

Date of Registration:

2014-2-6

4

Case Type:

Chattel Mortgage

File No.:

103915

Debtor Name:

Big Sun Energy Technology Inc.

Document Number:

10030344090

Date of Registration:

2011-6-2

Date of Alteration:

2013-4-22

5

Case Type:

Conditional Sale

File No.:

041218

Debtor Name:

Big Sun Energy Technology Inc.

Document Number:

10331010840

Date of Registration:

2014-2-26

6

Case Type:

Chattel Mortgage

File No.:

101052

Debtor Name:

Big Sun Energy Technology Inc.

Document Number:

09930331610

Date of Registration:

2010-8-17

 

Lawsuit

 

1

Trial Number:

2008, Sheng, 825

Date of Trial:

2008-8-28

Reason:

Return the escrow thing

Claimant:

Big Sun Energy Technology Inc.

Defendant:

Not Stated

2

Trial Number:

2011, Bu, 93

Date of Trial:

2011-2-8

Reason:

Return the sale price of gold, etc

Claimant:

Big Sun Energy Technology Inc.

Defendant:

Quartz Palitra Ltd. and Zhong Hua Jing Technology Co., Ltd (Liberal Translation)

3

Trial Number:

2011, Shengchongsu, 12

Date of Trial:

2011-7-1

Reason:

Return the sale price of gold, etc

Claimant:

Big Sun Energy Technology Inc.

Defendant:

Quartz Palitra Ltd. and Zhong Hua Jing Technology Co., Ltd (Liberal Translation)

 

 

Special Note

 

Interview Details

Name

Ms. Chen

Department

Sales Department

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.47

UK Pound

1

Rs.100.43

Euro

1

Rs.79.40

                

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

SDA

               

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.