MIRA INFORM REPORT

 

 

Report No. :

355315

Report Date :

16.12.2015

 

IDENTIFICATION DETAILS

 

Name :

DOOSAN ENGINE CO., LTD.

 

 

Registered Office :

18, Gongdan-ro 21beon-gil, Seongsan-gu, Changwon-si, Gyeongsangnam-do

 

 

Country :

Korea (South)

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

30.12.1999

 

 

Com. Reg. No.:

609-81-40128

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Internal Combustion Piston Engines.

 

 

No. of Employee :

836

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

 

 

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Korea (South)

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

KOREA (SOUTH) 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. 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 slow growth due to sluggish domestic consumption and investment. 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. In an effort to address the long term challenges and sustain economic growth, the current government has prioritized structural reforms, deregulation, promotion of entrepreneurship and creative industries, and the competitiveness of small and medium enterprises.

 

Source : CIA

 

Basic Information

 

Basic

 

Company Name

DOOSAN ENGINE CO., LTD.

Registered Address

18, Gongdan-ro 21beon-gil, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea

Building

 

Zip Code

51561

Tel

+82-55-260-6000

Fax

+82-55-282-0588

E-mail

wookyu.kim@doosan.com;humjin.baek@doosan.com

Website

www.doosanengine.com

Trading Address

18, Gongdan-ro 21beon-gil, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea

(Old Address System : 69-3, Sinchon-dong, Changwon-si, Gyeongsangnam-do, Korea)

Tel

+82-55-260-6000

Fax

+82-55-282-0588

Other Address-Geoje Office

1, Aju-dong ,Geoje-si, Gyeongsangnam-do, Korea

Tel

+82-55-682-2261

Fax

+82-55-681-7427

Other Address-Busan Office

29, Bongnae-dong 5-ga ,Yeongdo-gu, Busan, Korea

Tel

+82-51-417-1388

Fax

+82-51-410-8621

Type

Export

Industry

Manufacture of Internal Combustion Piston Engines

  Main Business

Diesel Engine, Diesel Power Generation, Ocean Plant Materials, Environment Pollution Protection Equipment

  Sub Business

 

Established (mm/dd/yyyy)

12/30/1999

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Engines(26101500)

Sell

Diesel power plants(26131501)

Sell

Crankshaft

Sell

Turbocharger

 

 


CEO’s

 

Name

Kim Dong-Cheol

Address

Suite 108-204, 69, Buil-ro, Bupyeong-gu, Incheon, Korea

Date of Birth

06/27/1952

Title

President & CEO

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

69,500,000,000

Employees

836

Formation

Listed Company (Korea Stock Exchange : 082740) as of 01/05/2011

A Company of DOOSAN GROUP

Bank Details

KEB Hana Bank-Changwon Branch

Corporate Registered No.

194211-0038423

Business Registered No.

609-81-40128

Permit & Licenses

Int’l Trade No.: 24023803

Shareholder Position

Name

Shares

%

DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO.,LTD(194211-0000943)

29,650,000

42.66

SAMSUNG HEAVY INDUSTRIES CO.,LTD(110111-0168595)

9,815,000

14.12

DAEWOO SHIPBUILDING & MARINE ENGINEERING CO., LTD.(110111-2095837)

5,600,000

8.06

NATIONAL PENSION SERVICE(110171-0007134)

3,509,720

5.05

EMPLOYEE STOCK OWNERSHIP ASSOCIATION

1,054,956

1.52

OTHERS

19,870,324

28.59

TOTAL

69,500,000

100.00

Company History

The engine business of Doosan Heavy Industries & Construction (former Hanjung), launched in 1983 and that of Samsung Heavy Industries, launched in 1994 were merged. In the merging process, Daewoo Shipbuilding & Marine Engineering joined this new company as a major shareholder. On January 1, 2000, Doosan Engine was officially set up under the banner of Doosan with the first initial letters of these three companies(HSD ENGINE CO., LTD.)

 

12/30/1999 Incorporated as HSD ENGINE CO., LTD.

03/31/2005 Changed company name to the present name

11/2005 Awarded US$500 Million Export Top Prize

11/2007 Awarded 1Billion Export Top Prize

12/29/2009 Increased capital to 62,500,000,000 KRW from 30,000,000,000 KRW

07/30/2010 Increased the authorized shares to 120,000,000 KRW from 16,000,000 KRW

12/28/2010 Increased capital to 69,500,000,000 KRW from 62,500,000,000 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

 

Name

Nationality

Date of Birth

Inauguration Date

President & CEO

Kim Dong-Cheol

Korean

06/27/1952

03/30/2012

Sr. Executive Director & CEO

Kim Il-Do

Korean

11/17/1962

03/27/2015

Executive Director

Cho Yong-Joon

Korean

11/26/1963

03/27/2015

Executive Director

Sunwoo Myung-Hwan

Korean

11/07/1955

03/28/2014

Vice President & CFO

Jang Myung-Ho

Korean

02/07/1964

03/30/2012

Outside Director / Auditor

Oh Se-Jong

Korean

06/08/1943

03/29/2013

Outside Director

Jung Koo-Young

Korean

11/12/1938

03/29/2013

Outside Director / Auditor

Yoon Yong-Seok

Korean

10/12/1954

03/29/2013

Outside Director

Lee Jae-Young

Korean

12/25/1965

03/29/2013

Outside Director / Auditor

Song Ho-Geun

Korean

01/04/1956

03/28/2014

 

 

Financials

 

Year / Unit : KRW

 

Sales

Assets

Net Income

(*)09/2015

474,522,050,079

1,469,076,835,111

-42,729,382,410

(*)2014

887,764,719,542

1,469,042,556,167

-31,056,427,706

(*)2013

743,104,362,158

1,538,917,384,654

-6,151,839,103

(*)2012

1,377,618,958,445

1,672,968,308,719

54,366,505,061

(*)2011

2,005,949,262,462

2,051,480,611,768

209,636,479,757

(*)2010

1,831,615,390,618

2,229,611,103,972

266,059,737,115

2009

1,772,597,107,485

2,464,900,272,093

-249,695,256,019

2008

1,734,836,578,853

3,138,764,982,205

-512,779,968,953

2007

1,221,957,444,340

1,857,689,988,086

103,001,092,083

2006

1,016,816,117,889

 934,211,090,107

52,418,002,030

2005

756,782,214,023

737,005,633,136

21,111,237,395

2004

588,395,875,988

637,788,986,998

3,111,534,708

2003

468,249,817,815

336,826,737,075

11,783,531,830

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

 

 

Financial Description

 

Authorized Capital(KRW)

120,000,000,000

Paid-Up Capital(KRW)

69,500,000,000

Total Issues Shares

69,500,000

 

 

BALANCE SHEET

 

Unit : Korean Won

01/01/2015~09/30/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

1,469,076,835,111

1,469,042,556,167

1,538,917,384,654

Current Assets

434,819,713,991

432,289,553,017

486,070,488,542

Cash & Cash Equivalents

16,021,149,449

40,970,489,949

41,258,747,154

Current Financial Instruments

19,263,668,551

37,810,000,000

145,000,000,000

Marketable Financial Instruments

 

7,000,000,000

 

Short-Term Receivables

888,300,000

1,100,900,000

9,155,850,000

Trade Receivables & Other Receivables

53,486,853,857

73,073,305,809

25,511,680,236

Other Receivables-Construction

16,138,156,435

12,999,974,380

10,720,649,184

Deferred Income Tax Assets

792,543,879

1,059,722,158

1,136,878,000

Derivatives

1,181,047,750

2,489,829,322

40,237,290,875

Confirmed Agreement Appraisal Assets

76,481,498,794

41,236,094,869

20,346,022,821

Inventories

238,605,436,360

197,396,445,146

176,548,148,458

Other Current Assets

11,961,058,916

17,152,791,384

16,155,221,814

Non-Current Assets

1,034,257,121,120

1,036,753,003,150

1,052,846,896,112

Non-Current Financial Instruments

6,000,000

1,934,858,690

1,803,167,918

Marketable Financial Instruments

72,048,000

72,048,000

7,072,048,000

Investment_Related Companies

363,994,143,560

363,994,102,690

363,994,102,690

Long-Term Receivables

2,082,639,470

3,116,039,530

4,753,397,044

Other Long-Term Receivables

9,488,676,657

10,701,073,220

9,693,320,091

Tangibles

575,523,194,606

587,007,566,603

606,336,556,559

Intangibles

50,045,838,147

41,679,003,150

24,908,539,891

Derivatives

1,332,391,996

722,321,724

6,095,491,976

Confirmed Agreement Appraisal Assets

23,686,770,198

25,860,296,653

26,435,478,337

Other Non-Current Assets

8,025,418,486

1,665,692,890

1,754,793,606

Total Liabilities

865,726,720,976

823,023,434,772

858,981,797,869

Current Liabilities

532,933,379,481

513,205,062,339

527,886,844,781

Trade Payables & Other Payables

119,562,801,691

124,770,714,634

85,188,695,183

Other Payables-Construction

11,423,219,772

14,568,457,756

3,773,450,411

Short-Term Borrowings

73,267,851,200

3,857,092,800

 

Advance Receipts

254,619,239,308

271,795,996,146

321,968,490,284

Current Portion of Long-Term Debts

 

50,000,000,000

63,318,000,000

Deferred Income Tax Credit

 

 

3,822,392,136

Derivatives

45,364,312,860

14,866,327,518

2,615,663,130

Confirmed Agreement Appraisal Debts

13,358,191,027

14,768,025,920

34,731,375,957

Finance Guarantee Debts

39,993,642

73,636,042

34,344,231

Provisions

3,804,946,665

1,916,319,087

 

Other Current Liabilities

11,492,823,316

16,588,492,436

12,434,433,449

Non-Current Liabilities

332,793,341,495

309,818,372,433

331,094,953,088

Long-Term Borrowings

75,000,000,000

45,000,000,000

50,000,000,000

Debentures

189,426,382,792

189,259,736,473

189,044,616,891

Other Long-Term Borrowings

8,403,882,407

1,918,290,120

1,112,640,295

Confirmed Salaries

11,336,005,394

11,865,665,028

10,608,946,661

Derivatives

17,717,188,409

7,306,319,851

279,647,734

Confirmed Agreement Appraisal Debts

4,327,451,575

13,108,076,384

21,394,738,642

Finance Guarantee

4,196,917,949

4,581,819,663

2,942,780,895

Provisions

1,747,758,685

1,949,715,661

10,097,900,058

Deferred Income Tax Credit

20,637,754,284

34,828,749,253

45,613,681,912

Capital Stock

69,500,000,000

69,500,000,000

69,500,000,000

Capital Surplus

367,214,701,425

367,214,701,425

367,214,701,425

Others

610,534,435

550,159,285

355,389,958

Other General Accumulated Amounts

36,190,732,192

36,207,539,902

36,207,539,902

Profit Surplus

129,834,146,083

172,546,720,783

206,657,955,500

Total Equity

603,350,114,135

646,019,121,395

679,935,586,785

Liab. & Shareholder’s Equity

1,469,076,835,111

1,469,042,556,167

1,538,917,384,654

 

 

INCOME STATEMENT

 

Unit : Korean Won

01/01/2015~09/30/2015

As of 12/31/2014

As of 12/31/2013

Sales

474,522,050,079

887,764,719,542

743,104,362,158

Cost of Sold Goods

472,567,547,517

886,270,246,080

691,062,379,511

Gross Profit

1,954,502,562

1,494,473,462

52,041,982,647

Selling & Admin. Expenses

46,709,577,807

39,904,780,646

50,103,470,238

Operating Income

-44,755,075,245

-38,410,307,184

1,938,512,409

Finance Income

94,949,263,338

91,160,334,537

100,716,557,461

Finance Expenses

106,229,183,959

93,987,658,722

104,139,106,746

Other Non-Operating Income

4,485,901,628

1,960,947,370

4,932,998,497

Other Non-Operating Expenses

5,371,283,141

2,688,873,049

8,682,574,295

Income Before Taxes

-56,920,377,379

-41,965,557,048

-5,233,612,674

Income Taxes Expenses

-14,190,994,969

-10,909,129,342

918,226,429

Net Income

-42,729,382,410

-31,056,427,706

-6,151,839,103

 

 

CASH FLOWS

 

Unit : Korean Won

01/01/2015~09/30/2015

As of 12/31/2014

As of 12/31/2013

Operating Activities Cash Flows

-89,531,869,688

-82,341,543,086

-55,321,566,926

Cash Flows from Operating

-81,455,807,021

-74,163,646,496

-32,633,243,128

Net Income

-42,729,382,410

-31,056,427,706

-6,151,839,103

Adjustment

20,152,913,114

24,071,126,445

3,596,792,680

Changes in Asset/ & Liability

-58,879,337,725

-67,178,345,235

-30,078,196,705

Interests Received

1,472,720,490

4,777,756,405

6,814,938,658

Interests Paid

-9,816,561,436

-10,309,894,777

-10,120,201,101

Dividends Received

600,000

 

826,620

Income Taxes

267,178,279

-2,645,758,218

-19,383,887,975

Cash Flows from Investing

15,160,824,978

96,461,068,107

6,565,877,613

Cash Inflow from Investing

29,696,539,229

118,455,575,235

30,369,738,965

Cash Outflows for Investing

-14,535,714,251

-21,994,507,128

-23,803,861,352

Cash Flows from Financing

49,410,758,400

-14,460,907,200

-4,672,895,145

Cash Inflows from Financing

99,410,758,400

48,857,092,800

89,421,600,000

Cash Outflows from Financing

-50,000,000,000

-63,318,000,000

-94,094,495,145

Increase/Decrease in Cash

-24,949,340,500

-288,257,205

-53,419,794,742

Cash at the Beginning of Year

40,970,489,949

41,258,747,154

94,678,541,896

Cash at the End of Year

16,021,149,449

40,970,489,949

41,258,747,154

 

 

Products, Technologies, Services Description

 

Main Products & Services

The Subject Company, an integrated engine manufacturer, is a business enterprise specializing in producing diesel engine for large vessels, called the heart of the sea and power generation.

 

Diesel Engine for Large Vessels

Marine Diesel Engine

Diesel Power Plant

Annual Production Capacity

(Unit: Thousand H/P)

Item

2010

2009

2008

Diesel Engine

14,000

14,000

14,000

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

DOOSAN MARINE INDUSTRY (DALIAN) CO., LTD.

Customers

SAMSUNG HEAVY INDUSTRIES CO.,LTD(110111-0168595)

HANJIN HEAVY INDUSTRIES & CONSTRUCTION CO.,LTD (180111-0602507)

DAEWOO SHIPBUILDING & MARINE ENGINEERING CO., LTD. (110111-2095837)

HUDONG-ZHONGHUA

ZHEJIANG OUHUA

DSIC

Competitors

HYUNDAI HEAVY INDUSTRIES CO.,LTD(181211-0000386)

STX ENGINE CO,.LTD(194211-0066763)

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates-Domestic

DOOSAN CORPORATION(110111-0013774)

DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO.,LTD(194211-0000943)

 

DOOSAN INFRACORE CO., LTD.(120111-0234469)

(6.03% held by the subject company)

 

DOOSAN ENGINE CO., LTD(194211-0038423)

DOOSAN MECATEC CO., LTD.(110111-0126022)

N.SHAPER CO., LTD .(110111-1943574)

ORICOM INC(110111-0176986)

DOOSAN DONG-A CO., LTD.(110111-3977117)

DOOSAN CO., LTD.(110111-0013774)

SRS KOREA CO., LTD.(110111-3139733)

DOOSAN FEED & LIVESTOCK CO., LTD.(110111-3809138)

DOOSAN WINE SALES CO., LTD.(110111-3942582)

SAMHWA CROWN & CLOSURE CO., LTD.(134111-0003462)

DOOSAN MOTTROL CO., LTD.(194211-0000274)

DOOSAN CONSTRUCTION & ENGINEERING CO., LTD.(110111-0194277)

NEO TRANS CO., LTD.(131111-0141801)

DOOSAN TOWER CO., LTD.(110111-1722499)

DOOSAN MOTORS CORP.(110111-3008293)

DONG HYUN ENGINEERING CO., LTD.(110111-0508329)

NEOPLUX CO., LTD.(110111-1927841)

DOOSAN CAPITAL CO., LTD.(110111-1220336) 19.99%

REXCON CO., LTD.(110111-3586273)

DOOSAN CUVEX CO., LTD(140111-00325709)

DOOSAN BEARS INC(110111-0346919)

DOOSAN MOTTROL HOLDINGS CO., LTD.(110111-3892505)

DIP HOLDINGS CO., LTD.(110111-4103076)

DOOSAN INFRACORE BOBCAT KOREA CO., LTD.(110111-5650696)

DOOSAN HFC ASIA CO., LTD.(180111-0986810)

 

CASCO CO., LTD.(210111-0047938)

(16.21% held by the subject company)

Affiliates-Overseas

DOOSAN MARINE INDUSTRY (DALIAN) CO., LTD.(DMI: CHINA)

DAGUSHAN NANGANG INDUSTRY PARK, DEVELOPMENT ZONE, DALIAN, P.R. CHINA

TEL :+86 411 8751 7957 FAX :+86 411 8751 7956

 

DALIAN SAMYOUNG DOOSAN METAL PRODUCT CO., LTD.(DSDM : CHINA)

(10.80% held by the subject company)

 

DOOSAN HOLDINGS EUROPE LTD.(DHEL : IRELAND)

(21.73% held by the subject company)

 

DOOSAN INFRACORE INTERNATIONAL, INC.(DII : USA)

(11.59% held by the subject company)

Overseas Office

EUROPE BRANCH

HEIDENKAMPSWEG, 100, 8. OG 20097 HAMBURG, GERMANY

TEL:+49-40-2533-5656 FAX:+49-40-2533-5661

 

SINGAPORE BRANCH

78, SHENTON WAY, #16-04, SINGAPORE 079120

TEL:+65-6222-5515 FAX:+65-6222-5525

 

SHANGHAI BRANCH

828, HUA DU MANSION 14F 1200M E, ZHANG YANG ROAD, PUDONG, SHANGHAI, CHINA

TEL: 22-6875-0876 FAX: 22-6875-0864

 

DALIAN HANJUNG-DMD INDUSTRY CO., LTD. (CHINA)

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

DOOSAN MARINE INDUSTRY (DALIAN) CO., LTD.(CHINA)

(100.0% held by the subject company)

 

DOOSAN ENGINE PNG CO., LTD.( DEPNG : PAPUA NEW GUINEA)

(100.0% held by the subject company)

Corporate Ownership

DOOSAN CORPORATION(110111-0013774)

DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO.,LTD(194211-0000943)

Major Shareholders

DOOSAN HEAVY INDUSTRIES & CONSTRUCTION CO.,LTD(194211-0000943)

Cooperative Enterprise

-Technical Support from

MAN DIESEL A/S

WARTSILA

MAN DIESEL SE

SEMT PIELSTICK

MITSUBISHI HEAVY INDUSTRIES

ABB TURBO SYSTEM

MAN DIESEL & TURBO FRANCE SAS

DAIHATSU DIESEL MFG.

 

-Insured Company

DONGBU INSURANCE CO., LTD.(110111-0095285)

MERITZ FIRE & MARINE INSURANCE CO., LTD.(110111-0013328)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit : Thousand KRW

09/2015

2014

2013

Export

198,204,050

444,591,084

279,528,814

Domestic

276,318,000

443,173,636

463,575,548

Total

474,522,050

887,764,720

743,104,362

The Subject exports to China and Europe.

 

 

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

Steamar Transportes Maritimos LDA & Others(1)

The Subject Company & Others(1)

Claim for Compensation form Damages

USD 125,163

EUR 266,865

1st round is proceeding

 

Court in Greece

GAEI(GUAM ADVANCE ENTERPRISES, INC.)

The Subject Company

Related to Chios Diesel Power Plant

Euro3,059,635

1st round is proceeding

 

Changwon District Court, Korea

Kim Kyung-Ho & Others(59)

The Subject Company

Related to Salaries

396,610,000

Proceeding

 

Changwon District Court, Korea

Lee Sang-Woo & Others(461)

The Subject Company

Related to Salaries

2,310,000,000

Proceeding

 

Korean Commercial Arbitration Board

Busan Jin Tax Service Office

The Subject Company

Reimbursement of Advanced Receipts

424,632,000

Proceeding

 

 

News Clipping

 

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FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.67.04

UK Pound

1

Rs.101.67

Euro

1

Rs.73.93

KRW

1

Rs.0.057

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

Report Prepared by :

ANK

 


 

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.