MIRA INFORM REPORT

 

 

Report No. :

317921

Report Date :

18.04.2015

 

IDENTIFICATION DETAILS

 

Name :

TORAY CHEMICAL KOREA INC.

 

 

Registered Office :

102, Gumi-Daero, Gumi-Si, Gyeongsangbuk-Do, Korea 730-906

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

01.07.1972

 

 

Com. Reg. No.:

515-81-00097

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Man-Made Fiber Fabrics

 

 

No. of Employees :

1,121

 

 

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 :

Slow but correct

 

 

Litigation :

Exist

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 economic 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. A system of close government and business ties, including directed credit and import restrictions, initially 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 7% 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 over 6% growth in 2010. The US-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Between 2012 and 2014, the economy experienced sluggish growth because of external market slowdowns. The administration in 2015 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 the heavy reliance on exports, which comprise about half of GDP

 

Source : CIA

 

 

Basic Information

 

Company Name

TORAY CHEMICAL KOREA INC.

(Trade Name : TCK)

(Ex. English Company Name : WOONGJIN CHEMICAL CO., LTD.)

Registered Address

102, Gumi-daero, Gumi-si, Gyeongsangbuk-do, Korea

(Old Address System : 287, Gongdan 2-dong, Gumi-si, Gyeongsangbuk-do, Korea)

Building

 

Zip Code

730-906

Tel

+82-54-469-4114

Fax

+82-54-469-4444

E-mail

webmaster@saehan.co.kr

Website

www.toray-tck.co

Trading Address

FKI Bldg., 24, Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea

(Old Address System : FKI Bldg., 28-1, Yeouido-dong, Yeongdeungpo-gu, Seoul, Korea)

Tel

+82-2-3279-7000

Fax

+82-2-3279-7062

Other Address-Gumi 2nd Factory

309, Gongdan-dong, Gumi, Gyungsangbuk-do, Korea

Tel

+82-54-480-3000

Fax

+82-54-480-3002

Other Address-Anseong Factory

58, Singeonji-dong, Anseong-si, Gyeonggi-do, Korea

Tel

+82-31-677-2831~4

Fax

+82-31-677-2835

Other Address-Yugu Factory

688, Yugu-ri, Yugu-eup, Gongju, Chungcheongnam-do, Korea

Tel

+82-41-840-6100

Fax

+82-41-840-6119

Other Address-R&D Institute

F3 906-19, Iui-dong Yeongtong-dong Suwon-si Gyeonggi-do, Korea

Tel

+82-31-546-7393

Fax

 

Type

Export/Import

Industry

Manufacture of Man-Made Fiber Fabrics

  Main Business

Yarn, Fabrics, PET Sheet, Filter, Chip

  Sub Business

 

Established (mm/dd/yyyy)

07/01/1972

 

The Subject owns the Gumi 1st and 2nd Factories and Yugu Factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Yarns(11151700

Sell

Blank tapes(43202002)

Sell

Magneto Optical MO disks(43202006)

Sell

Cotton fibers(11151507)

Sell

Resins(13111000)

Sell

Filters(40161500)

Sell

Concrete pilings(30102802)

Sell

Polyester films(13111210)

Sell

Blank video tapes(45131604)

Sell

Fabrics and leather materials(11160000)

Sell

Water purification equipment(47101514)

Sell

Sheet(30102500)

 

 

CEO’s

 

Name

Park Chan-Koo

Address

-

Date of Birth

07/31/1963

Title

Vice President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

237,230,757,000

Employees

1,121

Formation

 (Korea Stock Exchange : 008000 ) as of 06/30/1977

Foreign Direct Investment Corporation

A Company of TORAY GROUP

Bank Details

Woori Bank

Kyungnam Bank

Korea Exchange Bank

Korea Development Bank

Corporate Registered No.

174811-0000151

Business Registered No.

515-81-00097

Permit & Licenses

11/1993 ISO 9002

09/1994 ISO 9001

12/1995 ISO 9002-Kyungsan factory

12/1996 ISO 14001 Gumi 1 Factory

12/1997 ISO 14001-Kyungsan factory

 

Int’l Trade No.: 875527

Shareholder Position

Name

Shares

%

TORAY ADVANCED MATERIALS KOREA INC.(176011-0020054)

26,062,137

56.21

OTHERS

20,301,714

43.79

TOTAL

46,363,851

100.00

Company History

07/01/1972 Incorporated as Cheil Synthetics Textiles Co. Ltd

02/28/1989 Changed company name to Cheil Synthetics Inc.

08/31/1995 Separated from Samsung Business Group

02/28/1997 Changed company name to SAEHAN INDUSTRIES INC

10/30/1999 Acquired SAEHAN CONSTRUCTION CO., LTD.

03/2000 Established DSI, a joint venture with DuPont /

03/2000 Received ‘IR52 Award’ for Semiconductor lead fixing tape

06/2000 Received ‘Defense Quality System Award’ in the textile area

02/2002 Received ‘Export-to-Japan Merit Award’ from Korea Textile Trade Association

10/2002 Received ‘Korean World-class Product Award’ for high bulky hollow fiber and fire retardant fiber /

10/2002 Received ‘Prime Minister’s Award’ for reverse osmosis membrane for seawater desalination at the New Tech Korea 2002

03/2003 Received ‘Korean World-class Product Award’ for Suede stretch fabric, fouling resistant reverse osmosis membrane

11/2003 Received ‘Korean World-class Product Award’ for Polyester/rayon blended stretch fabric

07/2005 Received ‘Korean World-class Product Award’ for polyester micro corduroy

11/2005 Received ‘Commerce Industry & Energy Minister Award’ for polyester micro corduroy

06/2006 Completed Gumi Plant

10/2006 Received ‘Commerce Industry & Energy Minister Award’ at the 2006 Korea Technology Grand Prize for High functional nano membranes.

11/2006 Received ‘2006 Gyeongsangbuk-do Energy Saving Best Prize’ at Gumi Plant.

03/21/2008 Changed the Company name to Woongjin Chemical Co., Ltd.

06/30/2008 Acquired Yugu Filer Factory from WOONGJIN COWAY CO., LTD.(110111-0626501)

03/20/2009 Decided to spin off the par value to 500 KRW from 5,000 KRW

01/2010 Moved to the present trading address from 254-8, Gongdeok-dong, Mapo-gu, Seoul, Korea

12/01/2012 Split off the company; existing company(WOONGJIN CHEMICAL CO., LTD.) and newly established company(Woongjin Textile Co., Ltd.)

03/31/2014 Changed company name to the present name

11/21/2014 Moved to the present trading address from 23th Fl, Namsan Square Bldg, 173, Toegye-ro, Jung-gu, Seoul, Korea (Old Address System : 23th Fl, Namsan Square Bldg, 60-1, Chungmuro 3-ga, Jung-gu, Seoul, Korea)

 

(*) History of Corporate Work-Out Procedure

05/18/2000 Applied to Corporate Work-Out Procedure

06/02/2000 Decided to Corporate Work-Out Procedure at the 2nd meeting of Creditors

10/18/2002 Signed the agreement on the Corporate Work-Out Procedure between the creditors of financial institutes and the Subject Company

12/30/2004 Postponed the payment of debts until 12/31/2006 based on the agreement on the 3rd Corporate Work-Out Procedure

12/28/2006 Postponed the payment of debts until 06/30/2007 based on the agreement on the 4th Corporate Work-Out Procedure

04/05/2007 Postponed the payment of debts until 12/31/2008 based on the agreement on the 5th Corporate Work-Out Procedure

01/25/2008 Completed the Corporate Work-Out Procedure

03/21/2008 Changed company name to the present name

06/30/2008 Transferred Water Treatment Business to WOONGJIN COWAY CO., LTD.(110111-0626501)

06/30/2008 Acquired Yugu Filter Factory from WOONGJIN COWAY CO., LTD.(110111-0626501)

03/20/2009 Spin off the par value to 500 KRW from 5,000 KRW

05/30/2013 Merged the par value to 5,000 KRW from 500 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education & Career

Vice President & CEO

Mr.

Park Chan-Koo

Korean

1963.07.31

The Wharton School, University of Pennsylvania, MBA

Chairman & CEO

Mr.

Lee Young-Kwan

Korean

1947.09.

Hongik University, Korea

Vice Chairman & CEO

Mr.

Nishimoto Yasunobu

Japanese

1950.08.

Tokyo University, Japan

Executive Director

Mr.

Ahn Ji-Yong

Korean

1972.01.19

Yonsei University, Korea

Auditor

Mr.

Hong Chul-Keun

Korean

1953.04.

-

Director

Mr.

Hujikawa Junichi

Japanese

1946.01.

President & CEO of Woongjin Holdings Co., Ltd.

Sr. Executive Director

Mr.

Nishimura Kenichi

Japanese

1965.01.

Present Prof., of Hanyang University, Korea

Outside Director

Mr.

Park Bong-Kyu

Korean

1953.09.

Present Prof., of Kunkuk University, Korea

Outside Director

Mr.

Baik Jae-Heum

Korean

1954.04.

Kim & Chang

 

 

Financials

 

Year / Unit : KRW

 

Sales

Assets

Net Income

(*)2014

809,635,311,673

705,207,898,909

-34,718,612,725

(*)2013

900,993,416,004

774,378,871,709

3,362,087,048

(*)2012

1,033,403,598,469

744,036,376,891

2,698,827,891

(*)2011

1,083,493,108,408

739,882,854,953

4,015,971,868

(*)2010

911,193,873,590

710,069,168,417

60,257,241,522

2009

803,174,786,065

620,741,739,445

10,182,466,223

2008

833,144,577,137

581,733,000,906

2,188,321,316

2007

738,215,214,924

597,081,062,377

-59,139,312,104

2006

716,754,465,391

886,459,599,104

-91,438,625,923

2005

744,435,173,207

1,004,443,504,799

5,506,215,130

2004

742,625,976,438

1,122,944,383,321

15,122,739,623

(*)Figures are based on the K-IFRS Accounting System.

 

 

Financial Description

 

Authorized Capital(KRW)

500,000,000,000

Paid-Up Capital(KRW)

237,230,757,000

Total Issues Shares

46,363,851

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

705,207,898,909

774,378,871,709

744,036,376,891

Current Assets

230,463,421,240

249,784,031,332

235,185,071,963

Cash & Cash Equivalents

38,131,742,421

51,374,111,836

28,036,826,564

Deposits

6,764,000,000

0

654,471,754

Trade Receivables

100,790,096,941

110,864,027,768

113,313,740,376

Other Receivables

4,327,275,318

4,012,218,327

11,360,269,597

Other Current Assets

1,878,477,280

2,544,091,584

3,054,131,837

Inventories

78,571,829,280

80,989,581,817

78,514,483,644

Deferred Income Tax Assets

0

0

251,148,191

Non-Current Assets

474,744,477,669

524,594,840,377

508,851,304,928

Non-Current Financial Instruments

960,000,000

600,000,000

1,240,000,000

Marketable Financial Instruments

1,059,566,785

925,137,860

723,235,036

Long-Term Trade Receivables

20,257,763

110,446,017

0

Other Receivables

6,454,321,454

3,867,473,504

4,663,712,025

Investment_Subsidiaries

64,452,267,385

64,443,915,485

63,600,822,585

Investment_Related Companies

4,621,552,065

5,177,402,065

4,065,702,065

Deferred Income Tax Assets

23,768,363,098

17,845,713,520

16,163,208,671

Other Non-Current Assets

166,852,500

2,166,852,500

2,166,852,500

Tangibles

346,626,423,398

398,202,462,074

381,450,367,736

Investment_Real Estates

14,327,889,020

13,880,699,715

14,019,843,784

Intangibles

12,286,984,201

17,374,737,637

20,757,560,526

Total Liabilities

426,097,042,146

462,135,804,457

435,355,106,862

Current Liabilities

162,706,700,458

273,037,358,463

322,149,925,081

Current Portion of Derivatives

33,698,954

482,291,433

626,532,129

Other Current Financial Debts

3,567,015

121,097,381

190,175,852

Trade Payables

58,048,314,069

80,564,838,090

73,686,718,430

Other Payables

40,617,037,919

44,086,531,994

49,071,872,177

Short-Term Borrowings

56,247,443,513

87,668,840,776

142,693,773,906

Current Portion of Debentures

0

40,533,903,131

30,000,000,000

Current Portion of Long-Term Debts

200,000,000

13,798,883,232

12,452,078,094

Accrued Income Taxes

1,763,566,487

1,104,151,438

0

Current Portion of Provisions

939,453,136

806,478,343

731,281,468

Other Current Liabilities

4,853,619,365

3,870,342,645

12,697,493,025

Non-Current Liabilities

263,390,341,688

189,098,445,994

113,205,181,781

Derivatives

0

15,289,550

241,076,661

Other Non-Current Non-Financial Debts

124,691,050

149,932,802

227,663,376

Other Non-Current Liabilities

11,570,270,109

7,017,977,381

5,888,012,136

Long-Term Borrowings

242,200,000,000

167,375,932,898

32,200,000,000

Confirmed Salaries

8,948,062,390

14,053,801,133

13,527,429,589

Provisions

547,318,139

485,512,230

485,512,230

Debenture

0

0

60,635,487,789

Capital Stock

237,230,757,000

237,230,757,000

237,230,757,000

Profit Surplus

40,533,940,538

74,421,446,690

73,495,640,178

Installments

147,565,815

7,360,327

-746,662,790

Others

1,198,593,410

583,503,235

-1,298,464,359

Total Equity

279,110,856,763

312,243,067,252

308,681,270,029

Liab. & Shareholder’s Equity

705,207,898,909

774,378,871,709

744,036,376,891

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

809,635,311,673

900,993,416,004

1,033,403,598,469

Cost of Sold Goods

700,739,144,835

798,340,907,222

910,203,145,392

Gross Profit

108,896,166,838

102,652,508,782

123,200,453,077

Selling & Admin. Expenses

-83,679,649,773

89,720,671,974

106,579,285,546

Operating Income

25,216,517,065

12,931,836,808

16,621,167,531

Other Non-Operating Income

16,167,274,705

18,023,942,914

19,633,274,638

Other Non-Operating Expenses

-63,304,470,743

-13,655,656,361

21,912,050,683

Profits from Investment on Related Companies

-555,850,000

0

0

Finance Income

694,512,586

1,730,371,716

3,596,562,401

Finance Expenses

-16,815,027,070

-14,454,375,167

13,033,718,883

Income Before Taxes

-38,597,043,457

4,576,119,910

4,905,235,004

Income Taxes Expenses

-3,878,430,732

1,214,032,862

2,206,407,113

Net Income

-34,718,612,725

3,362,087,048

2,698,827,891

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

45,622,601,191

48,223,351,556

56,957,724,959

Net Income

-34,718,612,725

3,362,087,048

2,698,827,891

Expenses

108,553,181,447

58,468,997,011

63,894,585,386

Profits

-3,934,279,301

-4,588,460,221

-7,374,220,544

Changes in Asset/ & Liability

-22,538,455,142

-8,411,775,160

-2,085,300,146

Income Taxes

-1,739,233,088

-607,497,122

-176,167,628

Cash Flows from Investing

-36,798,196,597

-47,403,977,543

-103,208,129,460

Cash Inflow from Investing

3,933,006,484

4,004,170,187

52,211,552,633

Cash Outflows for Investing

-40,731,203,081

-51,408,147,730

-155,419,682,093

Cash Flows from Financing

-23,289,263,643

22,996,631,503

20,364,329,813

Cash Inflows from Financing

743,280,064,271

613,067,603,021

179,146,927,749

Cash Outflows from Financing

-766,569,327,914

-590,070,971,518

-158,782,597,936

Increase/Decrease in Cash

-14,464,859,049

23,816,005,516

-25,886,074,688

Cash at the Beginning of Year

51,374,111,836

28,036,826,564

54,415,542,704

Cash at the End of Year

38,131,742,421

51,374,111,836

28,036,826,564

 

 

Products, Technologies, Services Description

 

Main Products & Services

Polyester Filament

Polyester Staple Fiber

Chip

Textile

Filter

Water Treatment

Sheet

 

Brand Name : ESLON, CSM

Detailed Products Spec.

Products

2009

2008

2007

P S F

214,438

207,068

199,146

P F

63,000

63,929

65,126

 

 

Trade Partners & Competitors

 

Competitors

HUVIS CORPORATION(110111-2102070)

HYOSUNG CORPORATION(110111-0030497)

DAEHAN SYNTHETIC FIBER CO., LTD.(110111-0012437)

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

TORAY COATEX CO.,LTD.

TORAY MONOFILAMENT CO.,LTD.

ICHIMURA SANGYO CO., LTD.

TORAY FINE CHEMICALS.CO., LTD.

TORAY PLASTICS PRECISION CO., LTD.

TORAY ADVANCED FILM CO., LTD.

SODA AROMATIC CO., LTD.

TORAY BATTERY SEPARATOR FILM CO., LTD.

TORAY ENGINEERING CO., LTD.

TORAY PRECISION CO., LTD

TORAY SYSTEMS CENTER, INC

SUIDO KIKO KAISHA, LTD.

TORAY MEDICAL CO., LTD.

TORAY RESEARCH CENTER, INC.

TORAY ENTERPRISE CORP.

TORAY INTERNATIONAL, INC.

CHORI CO.,LTD.

TORAY TEXTILES EUROPE LTD.

ALCANTARA S.P.A.

P.T. EASTERNTEX

P.T. INDONESIA TORAY SYNTHETICS

LUCKYTEX (THAILAND) PUBLIC COMPANY LIMITED

THAI TORAY TEXTILE MILLS PUBLIC COMPANY LIMITED

THAI TORAY SYNTHETICS CO., LTD.

PENFABRIC SDN.BERHAD

PENFIBRE SDN.BERHAD

TORAY FIBERS(NANTONG) CO.,LTD. (TFNL)

TORAY POLYTECH (NANTONG) CO.,LTD. (TPN)

TORAY SAKAI WEAVING & DYEING(NANTONG)CO.,LTD. (TSD)

TORAY ADVANCED MATERIALS KOREA INC.

TORAY CHEMICAL KOREA INC.

TORAY PLASTICS (AMERICA), INC.

TORAY FILMS EUROPE S.A.S.

TORAY PLASTICS (MALAYSIA) SDN.BERHAD

TORAY PLASTICS (SUZHOU)CO.,LTD. (TPSU)

STEMCO, LTD.

TORAY CARBON FIBERS AMERICA, INC.

TORAY COMPOSITES (AMERICA), INC.

TORAY CARBON  FIBERS EUROPE S.A.

TORAY INDUSTRIES (CHINA)CO.,LTD. (TCH)

TORAY INDUSTRIES (H.K.) LTD.

 

Subsidiary

PT. TCK TEXTILES INDONESIA

(90.34% held by the subject company)

6TH FLOOR, ROOM 604, KOREA CENTER.JL. GATOT SUBROTO KAV. 58 JAKARTA SELATAN, 12950, INDONESIA

 

TCK MEMBRANE (TIANJIN) CO., LTD

(100.00% held by the subject company)

NO.2 KEYUAN 4ST TEDA(JINNAN) MICRO-ELECTRONICS INDUSTRIAL AREA BALITAI-ZHEN JINNAN-DISTRICT TIANJIN, 300-350 CHINA.

 

TCK SHANGHAI CO., LTD.

(100.00% held by the subject company)

RM 2307, INTERNATIONAL TRADE CENTER, 2200 YANAN ROAD(W). SHANGHAI, 200336, CHINA

 

TCK MEMBRANE AMERICA INC.

(100.00% held by the subject company)

3390 E. MIRALOMA AVE.ANAHEIM, CA 92806, USA

 

TCK FIBERS (SUZHOU) CO., LTD.

(100.00% held by the subject company)

LUSI ROAD 2, WUJIANG DISTRICT PINGWANG TOWN ZHONGLU INDUSTRY PARK, WU JIANG SHI, SUZHOU CITY, JIANGSU , CHINA

 

TCK TRADING SINGAPORE PTE. LTD.

(100.00% held by the subject company)

152 BEACH ROAD, GATEWAY EAST #18-02, SINGAPORE 189721

 

TCK TEXTILES KOREA INC.(176011-0080107)

(100.00% held by the subject company)

 

TCK TEXTILES VINA CO.,LTD.

LOT I4, ROAD NO.4, HAI SON INDUSTRIAL ZONE, DUC HOA HA COMMUNE, UC HOA DISTRICT, LONG AN PROVINCE

Corporate Ownership

WOONGJIN HOLDINGS CO., LTD.(110111-0346745)

Major Shareholders

WOONGJIN HOLDINGS CO., LTD.(110111-0346745)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2012

2011

2010

Export

497,851

695,274

582,831

Domestic

286,831

388,219

328,363

Total

784,682

1,083,493

911,194

 

The Subject exports to China, Japan, Europe and North America.

 

 


Court Action

 

Case No.

Court

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

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

Cause

Amount (KRW)

Status

 

Seoul Central District Court

Hyundai oil Refinery Co., ltd.(110111-0090558)

The Subject Company

Claim for Receivables

90,024,000

The Subject won as of 02/05/2014

 

Busan District Court

Prosecutor

The Subject Company & Others

 

 

1st round is proceeding.

 

 

News Clipping

 

-------

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.35

UK Pound

1

Rs.93.10

Euro

1

Rs.67.13

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.