MIRA INFORM REPORT

 

 

Report No. :

352082

Report Date :

03.12.2015

 

IDENTIFICATION DETAILS

 

Name :

TOUNG LOONG TEXTILE MFG. CO., LTD.

 

 

Registered Office :

19Fl, No.31, Sec. 2, San Ming Rd., Banqiao Dist., New Taipei City 220

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

14.08.1961

 

 

Com. Reg. No.:

18770509

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and Sale of Texturing Yarn and Other Yarns.

 

 

No. of Employees :

About 420

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Taiwan

A1

A1

 

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. 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. However, follow-on components of the ECFA, including a signed agreement on trade in services and negotiations on trade in goods and dispute resolution, have stalled. In early 2014, the government bowed to public demand and proposed a new law governing the oversight of cross-Strait agreements, before any additional deals with China are implemented; the legislature has yet to vote on such legislation, leaving the future of ECFA up in the air as President MA enters his final full year in office. MA has portrayed ECFA as Taiwan’s key to greater participation in East Asia’s free trade networks.

 

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 expected to account for nearly 20% of the island's total population by 2025.

 

The island runs a trade surplus, largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind those of China, Japan, Saudi Arabia, 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, the Taiwan Central Bank signed a memorandum of understanding (MOU) 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 has helped Taiwan develop into a local RMB hub.

 

Closer economic links with the mainland bring greater opportunities for Taiwan’s economy but also pose new challenges as the island becomes more economically dependent on China at a time when political differences remain unresolved. During 2014, the press paid increasing attention to domestic economic issues, while pushing aside the debates over trade liberalization that were a hallmark of MA’s tenure. The media focused on the divide between Taiwan’s “haves” and “have nots,” providing extensive coverage of public frustration with stagnant wages, skyrocketing housing prices, and the difficulty of finding decent entry-level jobs.

 

Source : CIA

 


Contact Points

 

Company Name:

TOUNG LOONG TEXTILE MFG. CO., LTD.

Supplied Name:

TOUNG LOONG TEXTILE MFG CO LTD

Trading Address:

19Fl, No.31, Sec. 2, San Ming Rd., Banqiao Dist., New Taipei City 220, Taiwan

Supplied Address:

19FI, NO.31, SAN MING RD., SEC.2 PAN CHIAO DIST., NEW TAIPEI CITY TAIWAN

Telephone Number:

+886-2-2961-2112

Fax Number:

+886-2-2962-6523

E-mail:

service@tloong.com.tw

 

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

Toung Loong Textile Mfg. Co., Ltd.

Registered Address:

19Fl, No.31, Sec. 2, San Ming Rd., Banqiao Dist., New Taipei City 220, Taiwan

Date of Foundation:

1961-8-14

Registration Number:

18770509

Registry:

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

Registered Capital:

NTD 1,720,000,000 (USD 52,632,000)

(As of 2015.12, 1 NTD = 0.0306 USD)

Paid-up Capital:

NTD 1,202,862,860 (USD 36,807,604)

Legal Representatives:

Xiuxiong You

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sale of texturing yarn and other yarns.

Staff:

About 420 Employees

Listed at Stock Exchange:

Yes; Stock Symbol 4401

Date of Last Annual Return:

2014-6-19

 

 

History

 

Subject was incorporated on 1961-8-14 with registered number 18770509 as Private Limited Liability Company in Taiwan.

 

Subject listed on Taiwan Over-The-Counter Securities Exchange on 1996-05-09.

 

 

Corporate Structure

 

Factories

1

Name:

ChangHua Fangyuan Factory

Address:

No. 8, Industrial Rd., No. 8, 11, 21, Industrial Zone 3rd Rd., Houliao Village, Changhua County, Taiwan

Date of Foundation:

1990-12-4

Date of Registration:

1991-9-20

Factory Registration Number:

99647187

Factory Manager:

Xiuxiong You

Status:

In Production

Date of Last Annual Return:

2015-2-6

Major Products:

111 spinning

2

Name:

Taoyuan Factory

Address:

No. 859, Fuguo Rd., Xipu Li, Taoyuan City, Taoyuan County, Taiwan

Date of Foundation:

1971-9-27

Date of Registration:

1973-9-11

Factory Registration Number:

99625530

Factory Manager:

Xiuxiong You

Status:

In Production

Date of Last Annual Return:

2002-8-9

Major Products:

111 spinning

 

 

Related Companies

1

Name:

Toung Loong Textile Mfg. (VN) Co., Ltd.

Tel:

+84-650-374-3219

Fax:

+84-650-375-3395

2

Name:

Sarah International Co., Ltd

Tel:

+84-650-378-8759

Fax:

+84-650-378-8762

3

Name:

Dong Long Enterprise Co., Ltd

Tel:

+855-23-995-897

 

Cooperative Companies

1

Name:

Lee Ven Industrial Co., Ltd.

Tel:

+886-2-2555-6198

Fax:

+886-2-2558-4578

Email:

tony@leeven.com.tw

2

Name:

Eclat Textile Co., Ltd.

Tel:

+886-2-2299-6000

Fax:

+886-2-2299-5483

Email:

services@eclat.com.tw

3

Name:

Shiny Textile Co., Ltd.

Tel:

+886-2-2557-1883

Fax:

+886-2-2557-1889

Email:

sale@shinytex.com.tw

 

 

Shareholders

 

Major Shareholders

 

Name

Subscription Shares     

Xiuxiong You

4,501,901

Zhicheng You

2,880,396

Rongjie You

5,841,986

Rongli You

5,697,230

Lixun Ke

10,000

Maojia Investment Co., Ltd. (Literal Translation)

5,243,989

Xianghao Investment Co., Ltd.

(Literal Translation)

1,154,000

Jinzong You

1,727,010

Jingwei Zhou

72,514

Sara Rose International Inc.

4,770,556

 

Shareholders Information:

1

Registered Name:

Sara Rose International Inc.

Registered Address:

20F, No.31, Sec. 2, San Ming Rd., Banqiao Dist., New Taipei City 220, Taiwan

Date of Foundation:

1992-6-10

Registration Number:

86718903

Registry:

New Taipei City Government

Registered Capital:

NTD 38,000,000 (USD 1,162,800)

(As of 2015.12, 1 NTD = 0.0306 USD)

Paid-up Capital:

NTD 38,000,000 (USD 1,162,800)

Legal Representatives:

Jingwei Zhou

Legal Form:

Joint Stock Company

Date of Last Annual Return:

2014-12-23

2

Registered Name:

Xianghao Investment Co., Ltd. (Literal Translation)

Registered Address:

19F, No. 33, Sec. 2, Sanmin Rd., Banqiao Dist., New Taipei City, Taiwan

Date of Foundation:

2007-3-13

Registration Number:

28621536

Registry:

New Taipei City Government

Registered Capital:

NTD 10,000,000 (USD 306,000)

(As of 2015.12, 1 NTD = 0.0306 USD)

Legal Representatives:

Shuhua You

Legal Form:

Private Limited Liability Company

Date of Last Annual Return:

2013-8-29

3

Registered Name:

Maojia Investment Co., Ltd. (Literal Translation)

Registered Address:

No. 289-1, Chang’an Street, Haishan Li, Banqiao Dist., New Taipei City, Taiwan

Date of Foundation:

1999-5-17

Registration Number:

16918689

Registry:

New Taipei City Government

Registered Capital:

NTD 28,000,000 (USD 856,800)

(As of 2015.12, 1 NTD = 0.0306 USD)

Legal Representatives:

Yongquan Chen

Legal Form:

Private Limited Liability Company

Date of Last Annual Return:

2015-10-30

 

 

Management Information

 

Core Management

 

Directors

1

Name

Xiuxiong You

Position

Chairman of the Board

2

Name

Zhicheng You

Position

Director & Manager

Date of Appointment of Manager

2010-6-17

3

Name

Rongjie You

Position

Director

4

Name

Rongli You

Position

Director

5

Name

Lixun Ke

Position

Director

6

Name

Qiuyue Chen

Position

Director

7

Name

Xuetao Wu

Position

Director

8

Name

Zexiang Ding

Position

Director

9

Name

Kaiping Zhang

Position

Director

10

Name

Jinzong You

Position

Supervisor

11

Name

Jingwei Zhou

Position

Supervisor

12

Name

Rongjun You

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 420 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

19Fl, No.31, Sec. 2, San Ming Rd., Banqiao Dist., New Taipei City 220, Taiwan

 

Production Information

 

Subject is engaged in manufacturing of texturing yarn and other yarns.

Subject has two factories in Taiwan for production.

It is introduced that subject has factories in Vietnam and Cambodia, but detail information cannot be available from local registry, the subject or any other resources.

Subject obtained ISO 9001 and ISO 14000 certifications

We obtained that the production capacity of the subject is as following from public files for references:

Unit: tons

Factories Taiwan

1,800  

Factories Abroad

500

 

Purchase Information

 

The registered activities of subject:

No.

Details

1

Manufacturing, sale and wholesale of kinds of synthetic suture and yarn for weaving purpose.

2

Manufacturing and distribution of kinds of cotton, fur, hemp thread and rayon.

3

Manufacturing and distribution of line textile products.

4

Manufacturing and processing of kinds of fiber line class and fibrous textile.

5

Import and export of wood (logs).

6

The related import and export business of the above products

 

Subject purchases raw materials from both home and abroad.

 

Sales Information

 

Subject is engaged in sale of texturing yarn and other yarns.

Subject’s major products are air textured yarn, draw textured yarn, sewing thread, multicolored twisted or composite yarn, zipper thread, nylon yarn dye, polyester yarn dye, mélange yarn dye, moisture management treated yarn dye.

It is introduced that subject’s products are mainly applied in women's clothing, fashion clothing, sports clothes, leisure suit and sleep underwear.

Subject’s sales regions mainly focus on Taiwan domestic market, Mainland China, Southeast Asia, South Asia, Europe and America.

Subject’s major customers are manufacturers of garment, bags and shoes.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Products

Raw materials

Payment Terms

T/T, Cash

 

Import

Products

Raw materials

Payment Terms

L/C, T/T

 

Sales

 

Domestic Markets

Product

Texturing yarn and other yarns

Selling Terms

T/T, Cash

 

Export

Product

Texturing yarn and other yarns

Selling Terms

L/C, T/T

 

 

Balance Sheet

 

Unit: NTD/000

Consolidated

2014-12-31

2013-12-31

Current assets

 

 

Cash and cash equivalents

346,879

425,526

Financial assets at fair value through profit or loss - current

0

0

Debt investments without active market - current, net

12,115

25,097

Notes receivable, net

16,846

28,478

Accounts receivable, net

330,571

404,777

Accounts receivable - related parties - net

0

0

Other receivables-- net

1,168

2,510

Inventories

1,059,876

989,416

Prepayment

20,830

24,471

Other current assets

8,000

0

Total Current assets

1,796,285

1,900,275

Non-current assets

 

 

Financial asset valued by cost-non current

35,521

36,521

The net investment by employing the equity method

65,011

57,298

Property, plant and equipment

2,376,146

2,154,269

Intangible assets

98

337

Other non-current assets

244,349

212,879

Non-current assets

2,721,125

2,461,304

Assets

4,517,410

4,361,579

Current liabilities

 

 

Short-term borrowing

498,964

348,530

Short-term notes payable

169,929

29,989

Notes payable

165,629

238,331

Accounts payable

176,833

294,083

Other payables

124,461

146,925

Current tax liabilities

52,011

106,003

Liabilities to prepare - current

0

1,097

Other current liabilities

137,824

134,078

Current liabilities

1,325,651

1,299,036

Non-current liabilities

 

 

Long-term borrowings

676,665

559,434

Deferred income tax liabilities

42,343

33,328

Other non-current liabilities

29,454

40,597

Non-current liabilities

748,462

633,359

Liabilities

2,074,113

1,932,395

Equity attributable to owners of parent

 

 

Share capital

 

 

Ordinary share

1,202,863

1,202,863

Total capital stock

1,202,863

1,202,863

Capital surplus

 

 

Capital surplus - offering a premium

167,271

167,271

Retained earnings

 

 

Legal reserve

280,514

216,574

Special reserve

3,007

135,161

Unappropriated retained earnings

728,229

666,274

Retained earnings

1,011,750

1,018,009

Other equity

 

 

Exchange differences on translation

6,213

-3,007

Total equity attributable to owners parent

2,388,097

2,385,136

Non-controlling interests

55,200

44,048

Total equity

2,443,297

2,429,184

 

 

Profit and Loss Account

 

Unit: NTD/000

Consolidated

2014

2013

Sales revenue

4,323,167

4,920,457

Operating costs

3,542,257

3,954,031

Net operating margin

780,910

966,426

Operating expenses

 

 

Selling expenses

87,767

74,350

General & administrative expenses

112,964

113,050

Research and development expenses

16,673

13,912

Total operating expenses

217,404

201,312

Operating profit

563,506

765,114

Non-operating income and expenses

 

 

Other income

31,030

36,801

Other gains and losses

2,797

-962

Finance costs

17,803

15,489

Share of profit/(loss) of associates and joint ventures accounted for under equity method

7,168

9,239

Total non-operating income and expenses

23,192

29,589

Profit before income tax

586,698

794,703

Income tax expense

131,232

142,510

Profit for the year from continuing operations

455,466

652,193

Profit for the year

455,466

652,193

Other comprehensive income

 

 

Foreign cash balance operating mechanism conversion of the financial statements

13,336

3,874

Determine the welfare program actuarial profit (loss)

-870

-14,009

Other comprehensive income

-1,740

1,843

Other comprehensive income net

10,726

-8,292

Comprehensive income

466,192

643,901

Net profit (loss) attributable to:

 

 

Net income or loss of parent company

439,540

639,399

Net income or loss of non-controlling equity

15,926

12,794

Comprehensive profit (loss) attributable to:

 

 

Comprehensive profit (loss) of parent company

448,020

630,421

Comprehensive profit (loss) of non-controlling equity

18,172

13,480

Basic earnings per share

 

 

Diluted earnings per share

3.65

5.32

 

 

Cash Flows

 

Unit: NTD/000

Consolidated

2014

2013

Cash flows from (used in) operating activities, indirect method

 

 

Profit (loss) from continuing operations before tax

586,698

794,703

Profit (loss) before tax

586,698

794,703

Depreciation expense

223,777

204,253

Amortization expense

3,408

2,689

Provision (reversal of provision) for bad debt expense

-2,695

1,531

Net income or loss of financial assets and liabilities by fair value

0

0

Interest expense

17,414

15,224

Interest income

-1,090

-1,991

Income gain

-1,521

-1,337

Income (loss) shares by equity method recognized by affiliated enterprise

-7,168

-9,239

Loss (gain) on disposal of property, plant and equipment

8,244

3,586

Impairment loss on financial assets

0

918

Total income (loss) projects non-influencing cash flow

240,369

215,634

Decrease (increase) in notes receivable

11,632

-19,644

Decrease (increase) in accounts receivable

76,798

-61,830

Decrease (increase) in accounts receivable-related parties

0

0

Decrease (increase) in other accounts receivable

1,342

-41

Decrease (increase) in inventories

-70,534

-191,225

Decrease (increase) in prepayments

3,641

2,064

Decrease (increase) in other financial assets

-8,000

0

Total changes in operating assets

14,879

-270,676

Increase (decrease) in notes payable

-72,702

81,265

Increase (decrease) in accounts payable

-117,250

77,192

Increase (decrease) in other accounts payable

-14,952

3,359

Increase (decrease) in liability reserve

-1,097

-1,618

Increase (decrease) in other current liabilities

1,645

642

Increase (decrease) in accrued pension liabilities

-12,013

-15,192

Total changes in operating liabilities

-216,369

145,648

Total changes in operating assets and liabilities

-201,490

-125,028

Total adjustments

38,879

90,606

Cash inflow (outflow) generated from operations

625,577

885,309

Interest received

1,090

1,991

Dividends received

3,201

2,387

Interest paid

-17,936

-14,714

Income taxes refund (paid)

-177,826

-56,937

Net cash flows from (used in) operating activities

434,106

818,036

Cash flows from (used in) investing activities

 

 

Disposal of bond investment of non-active market

12,982

66,097

Disposal of financial assets at cost

1,000

0

Stock capital return back by reducing financial assets at cost

0

314

Acquisition of property, plant and equipment

-459,342

-447,563

Proceeds from disposal of property, plant and equipment

1,977

2,120

Refundable deposit

1,063

2,822

Acquisition of intangible assets

0

-217

Increase in other non-current assets

-2,653

-1,122

Increase in prepayment of equipment

-32,548

-130,765

Net cash flows from (used in) investing activities

-477,521

-508,314

Increase in short-term borrowing

150,434

17,645

Decrease in short-term notes payable

139,940

-119,912

Raising long-term borrowing

119,332

87,864

Cash dividends paid

-445,059

-264,630

Changes in non-controlling equity

-7,020

-14,240

Net cash flows from (used in) financing activities

-42,373

-293,273

Effect of exchange rate changes on cash and cash equivalents

7,141

2,622

Net increase (decrease) in cash and cash equivalents

-78,647

19,071

Cash and cash equivalents at beginning of period

425,526

406,455

Cash and cash equivalents at end of period

346,879

425,526

Cash and cash equivalents reported in the statement of financial position

346,879

425,526

 

Note: Subject didn’t submit its individual financial information; we obtained its consolidated financials as above for reference.

The above financial figures are based on the IFRSs Accounting System.

 

 

Bankers

 

1

Name:

Mega international commercial bank

2

Name:

Hua Nan Commercial Bank

 

 

Public Record

 

Mortgage

 

1

Case Type:

Chattel Mortgage

Registered Number:

JS(ZH)DZD108168

Debtor Name:

Toung Loong Textile Mfg. Co., Ltd.

Registry:

MOEA Central Office

Name of Mortgagee:

Mega International Commercial Bank (Banqiao Branch)

Date of Registration:

2013-7-26

Amount of Secure Claims:

NTD 138,000,000

Type of Subject Matter:

Machinery, equipment or tools

2

Case Type:

Chattel Mortgage

Registered Number:

JS(ZH)DZD105638

Debtor Name:

Toung Loong Textile Mfg. Co., Ltd.

Registry:

MOEA Central Office

Name of Mortgagee:

China Development Industrial Bank Inc.

Date of Registration:

2012-3-30

Amount of Secure Claims:

NTD 163,110,000

Type of Subject Matter:

Machinery, equipment or tools

3

Case Type:

Chattel Mortgage

Registered Number:

JS(ZH)DZD105924

Debtor Name:

Toung Loong Textile Mfg. Co., Ltd.

Registry:

Economic Development Board of Taoyuan City Government

Name of Mortgagee:

Chang Hwa Commercial Bank (Wanhua Branch)

Date of Registration:

2012-5-23

Amount of Secure Claims:

NTD 68,400,000

Type of Subject Matter:

--

4

Case Type:

Chattel Mortgage

Registered Number:

JS(ZH)DZD104592

Debtor Name:

Toung Loong Textile Mfg. Co., Ltd.

Registry:

MOEA Central Office

Name of Mortgagee:

Mega International Commercial Bank (Banqiao Branch)

Date of Registration:

2011-9-1

Amount of Secure Claims:

NTD 238,000,000

Type of Subject Matter:

Machinery, equipment or tools

5

Case Type:

Chattel Mortgage

Registered Number:

G(ZH)DZD090320

Debtor Name:

Toung Loong Textile Mfg. Co., Ltd.

Registry:

Economic Development Board of Taoyuan City Government

Name of Mortgagee:

Mega International Commercial Bank (Banqiao Branch)

Date of Registration:

2007-3-16

Amount of Secure Claims:

NTD 33,000,000

Type of Subject Matter:

Machinery, equipment or tools

6

Case Type:

Chattel Mortgage

Registered Number:

G(ZH)DZD078066

Debtor Name:

Toung Loong Textile Mfg. Co., Ltd.

Registry:

Economic Development Board of Taoyuan City Government

Name of Mortgagee:

Chiao Tung Bank (Banqiao Branch)

Date of Registration:

2003-12-19

Amount of Secure Claims:

NTD 345,173,000

Type of Subject Matter:

Machinery, equipment or tools

7

Case Type:

Chattel Mortgage

Registered Number:

G(ZH)DZD069709

Debtor Name:

Toung Loong Textile Mfg. Co., Ltd.

Registry:

Economic Development Board of Taoyuan City Government

Name of Mortgagee:

Chiao Tung Bank (Banqiao Branch)

Date of Registration:

2001-3-19

Amount of Secure Claims:

NTD 32,696,400

Type of Subject Matter:

Machinery, equipment or tools

8

Case Type:

Chattel Mortgage

Registered Number:

G(ZH)DZD066911

Debtor Name:

Toung Loong Textile Mfg. Co., Ltd.

Registry:

Economic Development Board of Taoyuan City Government

Name of Mortgagee:

Chiao Tung Bank (Banqiao Branch)

Date of Registration:

2000-7-28

Amount of Secure Claims:

NTD 208,726,000

Type of Subject Matter:

Machinery, equipment or tools

Note: Recently, the registry of Taiwan has updated its official system of mortgage, the form and content of the company mortgage has been changed. We can only obtain the mortgage in new form as above for your reference.

 

Lawsuit

 

Up to date of report, no existing or latent litigation of the subject has been found.

 

 

Special Note

 

Interview Details

Name

Ms. Lin

Department

Sales Department

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.62

UK Pound

1

Rs.100.34

Euro

1

Rs.70.67

TWD

1

Rs.2.04

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

HEE

 

 

Report Prepared by :

TPT

 


               

RATING EXPLANATIONS

 

RATING

STATUS

PROPOSED CREDIT LINE

 

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

 

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

 

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

 

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

 

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

Credit not recommended

 

--

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.