MIRA INFORM REPORT

 

 

Report No. :

353011

Report Date :

08.12.2015

 

IDENTIFICATION DETAILS

 

Name :

KIPAS PAZARLAMA VE TICARET A.S.

 

 

Registered Office :

Aksu Mah. Gazi Mustafa Kemal Bulvari No:105/A Dulkadiroglu Kahramanmaras

 

 

Country :

Turkey

 

 

Financials (as on) :

30.09.2015

 

 

Date of Incorporation :

06.04.2004

 

 

Com. Reg. No.:

7387

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Wholesale Trade of Yarn and Dyed Fabric.

 

 

No. of Employees :

21

 

 

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 :

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)

Turkey

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

                                                          TURKEY - ECONOMIC OVERVIEW

 

Turkey's largely free-market economy is increasingly driven by its industry and service sectors, although its traditional agriculture sector still accounts for about 25% of employment. An aggressive privatization program has reduced state involvement in basic industry, banking, transport, and communication, and an emerging cadre of middle-class entrepreneurs is adding dynamism to the economy and expanding production beyond the traditional textiles and clothing sectors. The automotive, construction, and electronics industries are rising in importance and have surpassed textiles within Turkey's export mix.

 

Oil began to flow through the Baku-Tbilisi-Ceyhan pipeline in May 2006, marking a major milestone that has brought up to 1 million barrels per day from the Caspian region to market. Several gas pipeline projects also are moving forward to help transport Caspian gas to Europe through Turkey, which over the long term will help address Turkey's dependence on imported oil and gas, which currently meets 97% of its energy needs.

 

After Turkey experienced a severe financial crisis in 2001, Ankara adopted financial and fiscal reforms as part of an IMF program. The reforms strengthened the country's economic fundamentals and ushered in an era of strong growth averaging more than 6% annually until 2008. Global economic conditions and tighter fiscal policy caused GDP to contract in 2009, but Turkey's well-regulated financial markets and banking system helped the country weather the global financial crisis, and GDP rebounded strongly to around 9% in 2010-11, as exports returned to normal levels following the recession. Two rating agencies upgraded Turkey's debt to investment grade in 2012 and 2013, and Turkey's public sector debt to GDP ratio fell to 33% in 2014. The stock value of Foreign Direct Investment reached nearly $195 billion at year-end 2014.

 

Despite these positive trends, GDP growth dropped to 4.4% in 2013 and 2.9% in 2014. Growth slowed considerably in the last quarter of 2014, largely due to lackluster consumer demand both domestically and in Europe, Turkey’s most important export market. High interest rates have also contributed to the slowdown in growth, as Turkey sharply increased interest rates in January 2014 in order to strengthen the country’s currency and reduce inflation. Turkey then cut rates in February 2015 in a bid to spur economic growth.

 

The Turkish economy retains significant weaknesses. Specifically, Turkey's relatively high current account deficit, domestic political uncertainty, and turmoil within Turkey's neighborhood leave the economy vulnerable to destabilizing shifts in investor confidence. Turkey also remains dependent on often volatile, short-term investment to finance its large current account deficit.

 

Source : CIA

 

 

NOTES

:

Address at your inquiry is the former address.

 

 

COMPANY IDENTIFICATION

 

 

NAME

:

KIPAS PAZARLAMA VE TICARET A.S.

HEAD OFFICE ADDRESS

:

Aksu Mah. Gazi Mustafa Kemal Bulvari No:105/A Dulkadiroglu Kahramanmaras / Turkey

PHONE NUMBER

:

90-344-236 38 00 (Administrative Office)

 

FAX NUMBER

:

90-344-236 33 07 (Administrative Office)

 

E-MAIL

:

kipas@kipas.com.tr

 

LEGAL STATUS AND HISTORY

 

 

TAX OFFICE

:

Aslanbey

TAX NO

:

5630485763

REGISTRATION NUMBER

:

7387

REGISTERED OFFICE

:

Kahramanmaras Chamber of Commerce and Industry

DATE ESTABLISHED

:

06.04.2004

ESTABLISHMENT GAZETTE DATE/NO

:

18.05.2004/6052

LEGAL FORM

:

Joint Stock Company

TYPE OF COMPANY

:

Private

REGISTERED CAPITAL

:

TL   594.000

PAID-IN CAPITAL

:

TL   594.000

 

HISTORY

:

Previous Address

:

Adana Yolu Uzeri 7. Km. Merkez Kahramanmaras

Changed On

:

04.04.2014 (Commercial Gazette Date /Number 11.04.2014/ 8548)

 

OWNERSHIP / MANAGEMENT

 

 

SHAREHOLDERS

:

Mehmet Hanifi Oksuz

29 %

Ahmet Oksuz

19,33 %

Okkas Gumuser

7,70 %

Erdogan Gumuser

7,70 %

Halil Ibrahim Gumuser

7,70 %

Hatice Gumuser

7,70 %

Haydar Gumuser

5,30 %

Leyla Kirmaci

2,97 %

Ayse Ipek

2,97 %

Berna Dogar

2,97 %

Imam Gumuser

1,30 %

Cumhur Gumuser

0,98 %

Zubeyde Baskonus

0,98 %

Ertugrul Gumuser

0,80 %

Ibrahim Gumuser

0,80 %

Mukremin Gumuser

0,80 %

 

 

GROUP PARENT COMPANY

:

KIPAS HOLDING A.S.

 

SISTER COMPANIES

:

AKEDAS ELEKTRIK DAGITIM A.S.

AKEDAS ELEKTRIK PERAKENDE SATIS A.S.

BOZKURT KONFEKSIYON SANAYI A.S.

ERDEM TEKSTIL SANAYI VE TICARET A.S.

GUMUSERLER IPLIK DOKUMA VE SANAYI YATIRIM A.S.

GUMUSERLER LASTIKCILIK OTOMOTIV GERI DONUSUM VE AMBALAJ SANAYI TICARET A.S.

HANBEY TARIM VE HAYVANCILIK ISLETMELERI A.S.

KAREN KAHRAMANMARAS ELEKTRIK URETIM A.S.

KCS KAHRAMANMARAS CIMENTO BETON SANAYI VE MADENCILIK ISLETMELERI A.S.

KEN KIPAS ELEKTRIK URETIM A.S.

KET KIPAS ELEKTRIK ENERJISI TOPTAN SATIS TICARET A.S.

KIPAS HAVACILIK KARGO TASIMACILIK VE TICARET A.S.

KIPAS HOLDING A.S.

KIPAS KAGIT SANAYI ISLETMELERI A.S.

KIPAS KAHRAMANMARAS IPLIK PAMUK TICARET VE SANAYI A.S.

KIPAS MENSUCAT ISLETMELERI A.S.

KIPAS OZEL EGITIM VE OGRETIM HIZMETLERI A.S.

KIPAS SIGORTA ARACILIK HIZMETLERI A.S.

KIPAS TARIM ISLETMELERI SANAYI VE TICARET A.S.

KIPER ELEKTRIK URETIM A.S.

MAREN MARAS ELEKTRIK URETIM SANAYI VE TICARET A.S.

OKSUZLER IPLIK DOKUMA VE SANAYI YATIRIM A.S.

SIMKOZA MAGAZACILIK A.S.

SIMKOZA TEKSTIL SANAYI A.S.

TEKSAN TEKSTIL VE AMBALAJ SANAYI TICARET A.S.

TOYMAR OTOMOTIV PETROL TICARET VE PAZARLAMA A.S.

 

BOARD OF DIRECTORS

:

Mehmet Hanifi Oksuz

Chairman

Ahmet Oksuz

Vice-Chairman

Halil Ibrahim Gumuser

Vice-Chairman

Halit Gumuser

Member

Hikmet Gumuser

Member

Nezihe Sinem Oksuz

Member

Erdogan Gumuser

Member

Irem Oksuz

Member

 

OPERATIONS

 

 

BUSINESS ACTIVITIES

:

Wholesale trade of yarn and dyed fabric.

 

NACE CODE

:

G .51.41

 

SECTOR

:

Commerce

 

NUMBER OF EMPLOYEES

:

21

 

NET SALES

:

95.405.351 TL

(2009) 

110.827.758 TL

(2010) 

177.101.485 TL

(2011) 

157.848 TL Thousand

(2012) 

181.194 TL Thousand

(2013) 

257.485 TL Thousand

(2014) 

268.400 TL Thousand

(01.01-30.09.2015) 

 

 

REMARKS ON CAPACITY

:

None

 

REMARKS ON PRODUCTION

:

None

 

EXPORT VALUE

:

91.246.452 TL

(2009)

105.453.920 TL

(2010)

155.031.949 TL

(2011)

151.699 TL Thousand

(2012)

170.590 TL Thousand

(2013)

239.876 TL Thousand

(2014)

246.082 TL Thousand

(01.01-30.09.2015)

 

 

 

 

EXPORT COUNTRIES

:

Egypt

Iran

Italy

Belarus

France

U.S.A.

Bangladesh

Germany

U.K.

Tunisia

Bulgaria

Hong-Kong

Poland

Lithuania

China

U.A.E.

Romania

Canada

 

MERCHANDISE  EXPORTED

:

Fabric

Yarn

 

HEAD OFFICE ADDRESS

:

Aksu Mah. Gazi Mustafa Kemal Bulvari No:105/A Dulkadiroglu  Kahramanmaras / Turkey

 

BRANCHES

:

Administrative Office  :  Gaziantep Yolu Uzeri 7. Km. Erkenez Mevkii Kahramanmaras/Turkey

           

INVESTMENTS

:

None

 

 

TREND OF BUSINESS

:

There was an upwards trend in  2014. There appears an upwards trend in  1.1 - 30.9.2015.

SIZE OF BUSINESS

:

Giant

 

 

FINANCE

 

 

MAIN DEALING BANKS

:

Finansbank Kahramanmaras Branch

Garanti Bankasi Kahramanmaras Branch

Turk Ekonomi Bankasi Kurumsal Gaziantep Branch

 

CREDIT FACILITIES

:

The subject company is making active use of credit facilities.

 

PAYMENT BEHAVIOUR

:

No payment delays have come to our knowledge.

 

 

KEY FINANCIAL ELEMENTS

:

 

(2011) TL

(2012) TL Thousand

(2013) TL Thousand

(2014) TL Thousand

(01.01-30.09.2015) TL Thousand

Net Sales

177.101.485

157.848

181.194

257.485

268.400

Profit (Loss) Before Tax

1.326.865

-699

-753

2.799

-1.877

Stockholders' Equity

20.516.269

19.817

19.064

21.555

19.646

Total Assets

42.628.968

91.590

149.620

123.759

140.554

Current Assets

42.628.968

91.590

149.560

123.699

140.494

Non-Current Assets

0

0

60

60

60

Current Liabilities

22.112.699

71.773

130.556

102.204

120.908

Long-Term Liabilities

0

0

0

0

0

Gross Profit (loss)

7.021.770

5.318

10.220

16.673

19.885

Operating Profit (loss)

-960.537

-1.441

1.753

-4.639

-231

Net Profit (loss)

984.551

-699

-753

2.491

-1.877

 

 

 

 

COMMENT ON FINANCIAL POSITION

 

 

Capitalization

Low As of 30.09.2015

Liquidity

Insufficient As of 30.09.2015

Remarks On Liquidity

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

 

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

 

Profitability

Operating Loss  in 2011

Low Net Profitability  in 2011

Operating Loss  in 2012

Net Loss  in 2012

Low Operating Profitability  in 2013

Net Loss  in 2013

Operating Loss  in 2014

Low Net Profitability  in 2014

Operating Loss (01.01-30.09.2015)

Net Loss (01.01-30.09.2015)

 

Gap between average collection and payable periods

Unfavorable in 01.01-30.09.2015

General Financial Position

Not in order

 

CREDIT OPINION WITHOUT OBLIGATION

 

 

 

Incr. in producers’ price index

 

Average USD/TL

Average EUR/TL

Average GBP/ TL

 ( 2009 )

5,93 %

1,5460

2,1529

2,4094

 ( 2010 )

8,87 %

1,5128

2,0096

2,3410

 ( 2011 )

13,33 %

1,6797

2,3378

2,6863

 ( 2012 )

2,45 %

1,7995

2,3265

2,8593

 ( 2013 )

6,97 %

1,9179

2,5530

3,0178

 ( 2014 )

6,36 %

2,1891

2,8989

3,6060

 ( 01.01-30.09.2015)

7,81 %

2,6640

2,9843

4,0944

 ( 01.01-30.11.2015)

6,06 %

2,7064

3,0117

4,1515

 

 

BALANCE SHEETS

 

 

 ( 31.12.2011 )  TL

 

 ( 31.12.2012 )  TL Thousand

 

 ( 31.12.2013 )  TL Thousand

 

 ( 31.12.2014 )  TL Thousand

 

 ( 30.09.2015 )  TL Thousand

 

CURRENT ASSETS

42.628.968

1,00

91.590

1,00

149.560

1,00

123.699

1,00

140.494

1,00

Not Detailed Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Cash and Banks

1.143.847

0,03

915

0,01

67.380

0,45

531

0,00

1.869

0,01

Marketable Securities

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Account Receivable

25.590.540

0,60

37.893

0,41

48.026

0,32

56.322

0,46

88.180

0,63

Other Receivable

12.744.201

0,30

50.159

0,55

32.843

0,22

60.012

0,48

40.746

0,29

Inventories

3.112.764

0,07

2.507

0,03

1.188

0,01

6.712

0,05

4.994

0,04

Advances Given

37.616

0,00

114

0,00

98

0,00

70

0,00

12

0,00

Accumulated Construction Expense

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Other Current Assets

0

0,00

2

0,00

25

0,00

52

0,00

4.693

0,03

NON-CURRENT ASSETS

0

0,00

0

0,00

60

0,00

60

0,00

60

0,00

Not Detailed Non-Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Long-term Receivable

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Financial Assets

0

0,00

0

0,00

60

0,00

60

0,00

60

0,00

Tangible Fixed Assets (net)

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Intangible Assets

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Deferred Tax Assets

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Other Non-Current Assets

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

TOTAL ASSETS

42.628.968

1,00

91.590

1,00

149.620

1,00

123.759

1,00

140.554

1,00

CURRENT LIABILITIES

22.112.699

0,52

71.773

0,78

130.556

0,87

102.204

0,83

120.908

0,86

Not Detailed Current Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

944.450

0,02

58.299

0,64

113.982

0,76

78.965

0,64

61.582

0,44

Accounts Payable

11.608.343

0,27

10.858

0,12

15.344

0,10

19.462

0,16

40.614

0,29

Loans from Shareholders

5.302.987

0,12

294

0,00

25

0,00

274

0,00

653

0,00

Other Short-term Payable

2.165.455

0,05

10

0,00

243

0,00

61

0,00

9.641

0,07

Advances from Customers

2.085.406

0,05

2.153

0,02

915

0,01

2.411

0,02

8.323

0,06

Accumulated Construction Income

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Taxes Payable

6.058

0,00

159

0,00

47

0,00

49

0,00

95

0,00

Provisions

0

0,00

0

0,00

0

0,00

277

0,00

0

0,00

Other Current Liabilities

0

0,00

0

0,00

0

0,00

705

0,01

0

0,00

LONG-TERM LIABILITIES

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Not Detailed Long-term Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Financial Loans

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Securities Issued

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Long-term Payable

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Loans from Shareholders

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Other Long-term Liabilities

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Provisions

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

STOCKHOLDERS' EQUITY

20.516.269

0,48

19.817

0,22

19.064

0,13

21.555

0,17

19.646

0,14

Not Detailed Stockholders' Equity

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Paid-in Capital

594.000

0,01

594

0,01

594

0,00

594

0,00

594

0,00

Cross Shareholding Adjustment of Capital

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Inflation Adjustment of Capital

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Equity of Consolidated Firms

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Reserves

6.937.718

0,16

7.922

0,09

7.922

0,05

7.922

0,06

10.381

0,07

Revaluation Fund

12.000.000

0,28

12.000

0,13

12.000

0,08

12.000

0,10

12.000

0,09

Accumulated Losses(-)

0

0,00

0

0,00

-699

0,00

-1.452

-0,01

-1.452

-0,01

Net Profit (loss)

984.551

0,02

-699

-0,01

-753

-0,01

2.491

0,02

-1.877

-0,01

TOTAL LIABILITIES AND EQUITY

42.628.968

1,00

91.590

1,00

149.620

1,00

123.759

1,00

140.554

1,00

 

REMARKS ON FINANCIAL STATEMENT

:

At the financial statements according to TAS, "Cheques Received" and "Outstanding Cheques" figures are under "Cash And Banks" figure. Beginning from the financial statements of 31.12.2011, "Cheques Received" and "Outstanding Cheques" figures are given under "Account Receivable" figure and "Account Payable" figure respectively. 

 

In the sub-items of "Account Receivable", TL thousand 0 is "Doubtful Trade Receivables" at the last balance sheet.                                                                                              

The details of "Other Receivable" figure at the last balance sheet (TL Thousand): Due From Shareholders:0, Due From Participations:0, Due From Affiliated Companies:0, Due From Personnel: 19, Other Miscellaneous Receivables: 40.727,  Other Receivable Total: 40.746. 

 

TL thousand 0 of "Tax Payable" is due to "Overdue, Delayed or Deferred Tax by Installments and Other Liabilities" at the last balance sheet.                                                                                                                                                                                                                                                         

At the last income statement TL thousand 23.564 of the other income is due to "Profit from Foreign Currency Exchange".                                                                                                                                                                                                                             

At the last income statement TL thousand  28.693 of the other expenses is due to "Loss from Foreign Currency Exchange" .                                                                                                                                                                                                                                                                                                                                                                     

 

INCOME STATEMENTS

 

 

(2011) TL

 

(2012) TL Thousand

 

(2013) TL Thousand

 

(2014) TL Thousand

 

(01.01-30.09.2015) TL Thousand

 

Net Sales

177.101.485

1,00

157.848

1,00

181.194

1,00

257.485

1,00

268.400

1,00

Cost of Goods Sold

170.079.715

0,96

152.530

0,97

170.974

0,94

240.812

0,94

248.515

0,93

Gross Profit

7.021.770

0,04

5.318

0,03

10.220

0,06

16.673

0,06

19.885

0,07

Operating Expenses

7.982.307

0,05

6.759

0,04

8.467

0,05

21.312

0,08

20.116

0,07

Operating Profit

-960.537

-0,01

-1.441

-0,01

1.753

0,01

-4.639

-0,02

-231

0,00

Other Income

12.112.629

0,07

7.686

0,05

25.036

0,14

34.097

0,13

28.069

0,10

Other Expenses

9.159.327

0,05

5.854

0,04

25.016

0,14

24.872

0,10

28.957

0,11

Financial Expenses

665.900

0,00

1.090

0,01

2.526

0,01

1.787

0,01

758

0,00

Minority Interests

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Profit (loss) of consolidated firms

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Profit (loss) Before Tax

1.326.865

0,01

-699

0,00

-753

0,00

2.799

0,01

-1.877

-0,01

Tax Payable

342.314

0,00

0

0,00

0

0,00

308

0,00

0

0,00

Postponed Tax Gain

0

0,00

0

0,00

0

0,00

0

0,00

0

0,00

Net Profit (loss)

984.551

0,01

-699

0,00

-753

0,00

2.491

0,01

-1.877

-0,01

 

FINANCIAL RATIOS

 

 

(2011)

(2012)

(2013)

(2014)

(01.01-30.09.2015)

LIQUIDITY RATIOS

 

Current Ratio

1,93

1,28

1,15

1,21

1,16

Acid-Test Ratio

1,79

1,24

1,14

1,14

1,08

Cash Ratio

0,05

0,01

0,52

0,01

0,02

ASSET STRUCTURE RATIOS

 

Inventory/Total Assets

0,07

0,03

0,01

0,05

0,04

Short-term Receivable/Total Assets

0,90

0,96

0,54

0,94

0,92

Tangible Assets/Total Assets

0,00

0,00

0,00

0,00

0,00

TURNOVER RATIOS

 

Inventory Turnover

54,64

60,84

143,92

35,88

49,76

Stockholders' Equity Turnover

8,63

7,97

9,50

11,95

13,66

Asset Turnover

4,15

1,72

1,21

2,08

1,91

FINANCIAL STRUCTURE

 

Stockholders' Equity/Total Assets

0,48

0,22

0,13

0,17

0,14

Current Liabilities/Total Assets

0,52

0,78

0,87

0,83

0,86

Financial Leverage

0,52

0,78

0,87

0,83

0,86

Gearing Percentage

1,08

3,62

6,85

4,74

6,15

PROFITABILITY RATIOS

 

Net Profit/Stockholders' Eq.

0,05

-0,04

-0,04

0,12

-0,10

Operating Profit Margin

-0,01

-0,01

0,01

-0,02

0,00

Net Profit Margin

0,01

0,00

0,00

0,01

-0,01

Interest Cover

2,99

0,36

0,70

2,57

-1,48

COLLECTION-PAYMENT

 

Average Collection Period (days)

52,02

86,42

95,42

78,75

118,27

Average Payable Period (days)

24,57

25,63

32,31

29,09

58,83

WORKING CAPITAL

20516269,00

19817,00

19004,00

21495,00

19586,00

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.63

UK Pound

1

Rs.100.65

Euro

1

Rs.72.40

TL

1

Rs.22.95

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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.