MIRA INFORM REPORT

 

 

Report No. :

306693

Report Date :

06.02.2015

 

IDENTIFICATION DETAILS

 

Name :

EASTMAN CHEMICAL LTD.

 

 

Registered Office :

24, Raffles Place, 15-00, Clifford Centre, 048621

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

11.04.1977

 

 

Com. Reg. No.:

S77FC2640-L

 

 

Legal Form :

Foreign Company

 

 

Line of Business :

Trading of Chemicals and Chemical Products

 

 

No of Employees :

100 [2014]

 

 

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 :

Regular

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

Singapore

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

C2

Very High Risk

 

D

 

 

SINGAPORE - ECONOMIC OVERVIEW

 

Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open and corruption-free environment, stable prices, and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but rebounded 15.1% in 2010, on the strength of renewed exports, before slowing to in 2011-13, largely a result of soft demand for exports during the second European recession. Over the longer term, the government hopes to establish a new growth path that focuses on raising productivity. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish Singapore as Southeast Asia's financial and high-tech hub.

 

Source : CIA

 


 

 

EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

S77FC2640-L

COMPANY NAME

:

EASTMAN CHEMICAL LTD.

FORMER NAME

:

EASTMAN CHEMICAL INTERNATIONAL LTD (31/12/1992)

INCORPORATION DATE

:

11/04/1977

COMPANY STATUS

:

EXIST

LEGAL FORM

:

FOREIGN

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

24, RAFFLES PLACE, 15-00, CLIFFORD CENTRE, 048621, SINGAPORE.

BUSINESS ADDRESS

:

9TH NORTH BOUNA VISTA DRIVE # 05-01, METROPOLIS TOWER 1, 138588, SINGAPORE.

TEL.NO.

:

65-68313148

FAX.NO.

:

65-67344151

CONTACT PERSON

:

DAVID AARON GOLDEN ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF CHEMICALS AND CHEMICAL PRODUCTS

AUTHORISED CAPITAL

:

USD 200,000.00

SALES

:

USD 228,649,195 [2013]

NET WORTH

:

USD 5,238,310 [2013]

STAFF STRENGTH

:

100 [2014]

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

STABLE

PAYMENT

:

PROMPT

MANAGEMENT CAPABILITY

:

GOOD

COMMERCIAL RISK

:

LOW

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

GOOD

INDUSTRY OUTLOOK

:

AVERAGE GROWTH

 

HISTORY / BACKGROUND


The Subject is principally engaged in the (as a / as an) trading of chemicals and chemical products.

The immediate and ultimate holding company of the Subject is EASTMAN CHEMICAL COMPANY, a company incorporated in UNITED STATES.


Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

25/08/2014

USD 200,000.00

USD 0.00

No shareholders was found in our databank at the time of investigation




DIRECTORS



DIRECTOR 1

 

Name Of Subject

:

MR. DAVID AARON GOLDEN

Address

:

1013, PARHAM PLACE, KINGSPORT, TN, 37660, UNITED STATES.

IC / PP No

:

423869351

Nationality

:

AMERICAN

Date of Appointment

:

23/05/2012

 

MANAGEMENT

 

 

1)

Name of Subject

:

DAVID AARON GOLDEN

Position

:

DIRECTOR

 

 

AUDITOR


No Auditor found in our databank

COMPANY SECRETARIES

 

1)

Company Secretary

:

ANGELA TEO BEE LUANG

IC / PP No

:

S0017677Z

Address

:

14, GREENLEAF DRIVE, BAN GUAN PARK, 279528, SINGAPORE.

Remarks

:

AGENT

 

2)

Company Secretary

:

SIEW BOON HIM

IC / PP No

:

S2143789A

Address

:

7, MARYMOUNT TERRACE, 05-06, TRESALVEO, 573963, SINGAPORE.

Remarks

:

AGENT

 

BANKING


No Banker found in our databank.

ENCUMBRANCE (S)


No encumbrance was found in our databank at the time of investigation.

LEGAL CHECK AGAINST SUBJECT


* A check has been conducted in our databank againt the Subject whether the subject has been involved in any litigation.

No legal action was found in our databank.

No winding up petition was found in our databank.

PAYMENT RECORD

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A


The Subject refused to disclose any information regarding its trade suppliers.

The Subject refused to provide any name of trade/service supplier and we are unable to conduct any trade enquiry. However, from financial historical data we conclude that :

OVERALL PAYMENT HABIT

Prompt 0-30 Days

[

X

]

Good 31-60 Days

[

]

Average 61-90 Days

[

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

CLIENTELE

 

Local

:

YES

Domestic Markets

:

SINGAPORE

Overseas

:

YES

Export Market

:

ASIA

Credit Term

:

N/A

Payment Mode

:

CHEQUES
TELEGRAPHIC TRANSFER (TT)

 

OPERATIONS

 

Goods Traded

:

CHEMICALS AND CHEMICAL PRODUCTS

 

Total Number of Employees:

YEAR

2014

2013


GROUP

N/A

N/A

COMPANY

100

80

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of chemicals and chemical products.

The Subject deals with chemicals.

The Subject however refused to disclose further information on its operation.

CURRENT INVESTIGATION

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-68313148

Match

:

N/A

Address Provided by Client

:

9TH NORTH BOUNA VISTA DRIVE 05-01, METROPOLIS TOWER 1,138588 SINGAPORE

Current Address

:

9TH NORTH BOUNA VISTA DRIVE # 05-01, METROPOLIS TOWER 1, 138588, SINGAPORE.

Match

:

YES

 

Other Investigations


On 22nd August 2014 we contacted one of the staff from the Subject and she provided some information.



FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Erratic

[

2011 - 2013

]

Profit/(Loss) Before Tax

:

Decreased

[

2011 - 2013

]

Return on Shareholder Funds

:

Favourable

[

176.92%

]

Return on Net Assets

:

Favourable

[

215.27%

]

The fluctuating turnover reflects the fierce competition among the existing and new market players.The dip in profit could be due to the stiff market competition which reduced the Subject's profit margin. Generally the Subject was profitable. The favourable return on shareholders' funds and return on net assets indicate that the Subject's management was efficient in utilising the assets to generate returns.

Working Capital Control

Stock Ratio

:

Favourable

[

7 Days

]

Debtor Ratio

:

Favourable

[

55 Days

]

Creditors Ratio

:

Favourable

[

2 Days

]

The Subject's stocks were moving fast thus reducing its holding cost. This had reduced funds being tied up in stocks. The favourable debtors' days could be due to the good credit control measures implemented by the Subject. The Subject had a favourable creditors' ratio where the Subject could be taking advantage of the cash discounts and also wanting to maintain goodwill with its creditors.

Liquidity

Liquid Ratio

:

Favourable

[

1.03 Times

]

Current Ratio

:

Unfavourable

[

1.14 Times

]

A minimum liquid ratio of 1 should be maintained by the Subject in order to assure its creditors of its ability to meet short term obligations and the Subject was in a good liquidity position. Thus, we believe the Subject is able to meet all its short term obligations as and when they fall due.

Solvency

Interest Cover

:

Nil

[

0.00 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The Subject's interest cover was nil as it did not pay any interest during the year. The Subject had no gearing and hence it had virtually no financial risk. The Subject was financed by its shareholders' funds and internally generated fund. During the economic downturn, the Subject, having a zero gearing, will be able to compete better than those which are highly geared in the same industry.

Overall Assessment :

The Subject recorded lower profits as its turnover showed a erratic trend. The Subject's management was unable to control its costs efficiently as its profit showed a downward trend. The Subject was in good liquidity position with its total current liabilities well covered by its total current assets. With its current net assets, the Subject should be able to repay its short term obligations. The Subject did not make any interest payment during the year. The Subject was dependent on its shareholders' funds to finance its business needs. The Subject was a zero gearing company, it was solely dependant on its shareholders to provide funds to finance its business. The Subject has good chance of getting loans, if the needs arises.

Overall financial condition of the Subject : STABLE

 

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators :

2009

2010

2011

2012

2013

 

Population (Million)

4.98

5.08

5.18

5.31

5.40

Gross Domestic Products ( % )

(0.8)

14.5

4.9

1.3

3.7

Consumer Price Index

0.6

2.8

5.2

4.6

2.4

Total Imports (Million)

356,299.3

423,221.8

459,655.1

474,554.0

466,762.0

Total Exports (Million)

391,118.1

478,840.7

514,741.2

510,329.0

513,391.0

 

Unemployment Rate (%)

3.2

2.2

2.1

2.0

1.9

Tourist Arrival (Million)

9.68

11.64

13.17

14.49

15.46

Hotel Occupancy Rate (%)

75.8

85.6

86.5

86.4

86.3

Cellular Phone Subscriber (Million)

1.37

1.43

1.50

1.52

1.97

 

Registration of New Companies (No.)

26,414

29,798

32,317

31,892

37,288

Registration of New Companies (%)

4.3

12.8

8.5

(1.3)

9.8

Liquidation of Companies (No.)

22,393

15,126

19,005

17,218

17,369

Liquidation of Companies (%)

113.4

(32.5)

25.6

9.4

(5.3)

 

Registration of New Businesses (No.)

26,876

23,978

23,494

24,788

22,893

Registration of New Businesses (%)

8.15

(10.78)

2.02

5.51

1.70

Liquidation of Businesses (No.)

23,552

24,211

23,005

22,489

22,598

Liquidation of Businesses (%)

11.4

2.8

(5)

(2.2)

0.5

 

Bankruptcy Orders (No.)

2,058

1,537

1,527

1,748

1,992

Bankruptcy Orders (%)

(11.5)

(25.3)

(0.7)

14.5

14.0

Bankruptcy Discharges (No.)

3,056

2,252

1,391

1,881

2,584

Bankruptcy Discharges (%)

103.7

(26.3)

(38.2)

35.2

37.4

 

INDUSTRIES ( % of Growth ) :

Agriculture

Production of Principal Crops

3.25

(0.48)

4.25

3.64

-

Fish Supply & Wholesale

(1.93)

(10.5)

12.10

(0.5)

-

 

Manufacturing *

71.5

92.8

100.0

100.3

102.0

Food, Beverages & Tobacco

90.4

96.4

100.0

103.5

103.5

Textiles

145.9

122.1

100.0

104.0

87.1

Wearing Apparel

211.0

123.3

100.0

92.1

77.8

Leather Products & Footwear

79.5

81.8

100.0

98.6

109.8

Wood & Wood Products

101.4

104.0

100.0

95.5

107.4

Paper & Paper Products

95.4

106.1

100.0

97.4

103.2

Printing & Media

100.9

103.5

100.0

93.0

86.1

Crude Oil Refineries

96.4

95.6

100.0

99.4

93.5

Chemical & Chemical Products

80.3

97.6

100.0

100.5

104.1

Pharmaceutical Products

49.1

75.3

100.0

109.7

107.2

Rubber & Plastic Products

101.2

112.3

100.0

96.5

92.9

Non-metallic Mineral

91.9

92.5

100.0

98.2

97.6

Basic Metals

92.6

102.2

100.0

90.6

76.5

Fabricated Metal Products

90.8

103.6

100.0

104.3

105.1

Machinery & Equipment

57.3

78.5

100.0

112.9

114.5

Electrical Machinery

86.8

124.1

100.0

99.3

108.5

Electronic Components

85.2

113.6

100.0

90.6

94.3

Transport Equipment

96.0

94.0

100.0

106.3

107.5

 

Construction

(36.9)

14.20

20.50

28.70

-

Real Estate

1.4

21.3

25.4

31.9

-

 

Services

Electricity, Gas & Water

1.70

4.00

7.00

6.30

-

Transport, Storage & Communication

3.90

12.80

7.40

5.30

-

Finance & Insurance

(16.4)

(0.4)

8.90

0.50

-

Government Services

4.50

9.70

6.90

6.00

-

Education Services

0.10

(0.9)

(1.4)

0.30

-

 

* Based on Index of Industrial Production (2011 = 100)

(Source : Department of Statistics)



INDUSTRY ANALYSIS

 

INDUSTRY :

TRADING

The wholesale and retail trade sector contracted by 1.5% in the fourth quarter of 2012, extending the 0.2% decline in the preceding quarter. For the whole of 2012, the sector declined by 0.7%, reversing the 1.6% growth in 2011. The sector was weighed down primarily by the wholesale trade segment. In 2012, the wholesale trade segment contracted by 1.0%, a reversal from the 1.4% growth in 2011. Growth of the retail trade segment also moderated to 2.0%, from 3.2% in the year 2011.

The domestic wholesale trade index grew by 1.2% in the fourth quarter of 2012, an improvement from the 5.4% decline in the third quarter. This was partly due to an increase in the sales of chemicals & chemical products and ship chandlers & bunkering. For the full year of 2012, the domestic wholesale trade index contracted by 2.2%, extending the 1.7% decline in 2011. The foreign wholesale trade index grew by 8.6% in the fourth quarter, an increase from the 6.6% growth in the third quarter. The expansion was partly due to resilient sales of petroleum & petroleum products. For the whole of 2012, the foreign wholesale trade index expanded by 9.1%, faster than the 4.3% increase in 2011.

In the fourth quarter of 2012, retail sales volume declined by 2.0%, extending the 0.3% decline in the third quarter. Excluding motor vehicles, retail sales volume grew by 0.4%, a slight moderation compared to the 1.5% gain in the third quarter of 2012. The sales volume of motor vehicles fell by 11% in the fourth quarter of 2012, after contracting by 6.1% in the third quarter. The sales of several discretionary items also declined in the fourth quarter. Besides, the sales of optical goods & books in 2012 fell by 3.6%, while the sales of telecommunications apparatus & computers declined by 1.4%.

For 2012 as a whole, retail sales volume grew by 1.3%, compared to the 2.0% expansion in 2011. Excluding motor vehicle sales, the increase in retail sales volume also moderated from 5.4% in 2011 to 1.7% in 2012. Medical goods & toiletries registered the largest increase (9.3%) in sales, followed by telecommunications apparatus & computers (6.9%). By contrast, the sales of watches & jewellery (-2.2%) and optical goods & books (-3.6%) declined.

OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 1977, the Subject is a Foreign company, focusing on trading of chemicals and chemical products. The Subject has been in business for over 3 decades. It has built up a strong clientele base and good reputation will enable the Subject to further enhance its business in the near term. The Subject is expected to enjoy a stable market shares.

Over the years, the Subject has penetrated into both the local and overseas market. The Subject has positioned itself in the global market and is competing in the industry. Its stable clientele base will enable the Subject to further enhance its business in the near term. Being a moderate size company, the Subject has a total workforce of 100 employees in its business operations. The Subject has a good management capability. Its capable management team has enabled the Subject to keep its business on going. Hence, the future prospect of the Subject is bright.

Financially, the Subject registered a higher turnover compared to previous year. However, its profits showed a reverse trend. The lower profit achieved was a result of higher operating cost and increased competition. The Subject has generated a favourable return based on its existing shareholders' funds which indicated that the management was efficient in utilising its funds to generate income. The Subject is in good liquidity position with its current liabilities well covered by it current assets. Hence, it has sufficient working capital to meet its short term financial obligations. Being a zero geared company, the Subject virtually has no financial risk as it is mainly dependent on its internal funds to finance its business. Given a positive net worth standing at USD 5,238,310, the Subject should be able to maintain its business in the near terms.

We regard that the Subject's overall payment habit is prompt. The Subject had a favourable creditors' ratio as evidenced by its favourable collection days.

The industry shows an upward trend and this trend is very likely to sustain in the near terms. Hence, the Subject is expected to benefit from the favourable outlook of the industry.

In view of the above favourable condition, we recommend credit be proceeded to the Subject with favourable term.

 

 

PROFIT AND LOSS ACCOUNT

 

THE FINANCIAL STATEMENTS WERE PREPARED IN ACCORDANCE WITH SINGAPORE FINANCIAL REPORTING STANDARDS.

EASTMAN CHEMICAL LTD.

 

Financial Year End

2013-12-31

2012-12-31

2011-12-31

Months

12

12

12

Consolidated Account

Company

Company

Company

Audited Account

YES

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

YES

Financial Type

FULL

FULL

FULL

Currency

USD

USD

USD

TURNOVER

228,649,195

212,224,505

212,637,645

Other Income

2,124,897

2,066,675

1,563,900

----------------

----------------

----------------

Total Turnover

230,774,092

214,291,180

214,201,545

Costs of Goods Sold

(209,511,100)

(195,202,805)

(195,112,349)

----------------

----------------

----------------

Gross Profit

21,262,992

19,088,375

19,089,196

----------------

----------------

----------------

PROFIT/(LOSS) FROM OPERATIONS

11,276,522

13,032,653

9,308,038

----------------

----------------

----------------

PROFIT/(LOSS) BEFORE TAXATION

11,276,522

13,032,653

9,308,038

Taxation

(2,008,682)

(1,983,765)

(1,558,974)

----------------

----------------

----------------

PROFIT/(LOSS) AFTER TAXATION

9,267,840

11,048,888

7,749,064

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

11,049,287

7,740,852

7,994,671

----------------

----------------

----------------

As restated

11,049,287

7,740,852

7,994,671

----------------

----------------

----------------

PROFIT AVAILABLE FOR APPROPRIATIONS

20,317,127

18,789,740

15,743,735

TRANSFER TO RESERVES - General

(15,078,817)

(7,740,453)

(8,002,883)

----------------

----------------

----------------

RETAINED PROFIT/(LOSS) CARRIED FORWARD

5,238,310

11,049,287

7,740,852

=============

=============

=============

 

BALANCE SHEET

 

EASTMAN CHEMICAL LTD.

 

ASSETS EMPLOYED:

FIXED ASSETS

45,052

23,685

43,352

----------------

----------------

----------------

TOTAL LONG TERM ASSETS

45,052

23,685

43,352

Stocks

4,144,040

5,602,040

5,155,741

Trade debtors

34,281,628

27,410,341

24,410,404

Amount due from related companies

3,536,030

8,683,643

41,003,909

Cash & bank balances

1,969

28,185

55,510

Others

19,973

18,386

17,809

----------------

----------------

----------------

TOTAL CURRENT ASSETS

41,983,640

41,742,595

70,643,373

----------------

----------------

----------------

TOTAL ASSET

42,028,692

41,766,280

70,686,725

=============

=============

=============

CURRENT LIABILITIES

Trade creditors

935,143

314,611

240,485

Other creditors & accruals

900,045

1,637,942

707,376

Amounts owing to holding company

20,634,090

15,584,841

58,888,530

Amounts owing to related companies

12,407,548

11,161,929

1,538,352

Provision for taxation

1,913,556

2,017,670

1,571,130

----------------

----------------

----------------

TOTAL CURRENT LIABILITIES

36,790,382

30,716,993

62,945,873

----------------

----------------

----------------

NET CURRENT ASSETS/(LIABILITIES)

5,193,258

11,025,602

7,697,500

----------------

----------------

----------------

TOTAL NET ASSETS

5,238,310

11,049,287

7,740,852

=============

=============

=============

HEAD OFFICE ACCOUNT

5,238,310

11,049,287

7,740,852

----------------

----------------

----------------

SHAREHOLDERS' FUNDS/EQUITY

5,238,310

11,049,287

7,740,852

----------------

----------------

----------------

5,238,310

11,049,287

7,740,852

=============

=============

=============

 

FINANCIAL RATIO

 

EASTMAN CHEMICAL LTD.

 

TYPES OF FUNDS

Cash

1,969

28,185

55,510

Net Liquid Funds

1,969

28,185

55,510

Net Liquid Assets

1,049,218

5,423,562

2,541,759

Net Current Assets/(Liabilities)

5,193,258

11,025,602

7,697,500

Net Tangible Assets

5,238,310

11,049,287

7,740,852

Net Monetary Assets

1,049,218

5,423,562

2,541,759

BALANCE SHEET ITEMS

Total Borrowings

0

0

0

Total Liabilities

36,790,382

30,716,993

62,945,873

Total Assets

42,028,692

41,766,280

70,686,725

Net Assets

5,238,310

11,049,287

7,740,852

Net Assets Backing

5,238,310

11,049,287

7,740,852

Shareholders' Funds

5,238,310

11,049,287

7,740,852

Total Share Capital

0

0

0

Total Reserves

0

0

0

LIQUIDITY (Times)

Cash Ratio

0.00

0.00

0.00

Liquid Ratio

1.03

1.18

1.04

Current Ratio

1.14

1.36

1.12

WORKING CAPITAL CONTROL (Days)

Stock Ratio

7

10

9

Debtors Ratio

55

47

42

Creditors Ratio

2

1

0

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

0.00

0.00

Liabilities Ratio

7.02

2.78

8.13

Times Interest Earned Ratio

0.00

0.00

0.00

Assets Backing Ratio

-

-

-

PERFORMANCE RATIO (%)

Operating Profit Margin

4.93

6.14

4.38

Net Profit Margin

4.05

5.21

3.64

Return On Net Assets

215.27

117.95

120.25

Return On Capital Employed

215.27

117.95

120.25

Return On Shareholders' Funds/Equity

176.92

100.00

100.11

Dividend Pay Out Ratio (Times)

0.00

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

0

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.87

UK Pound

1

Rs.94.07

Euro

1

Rs.70.19

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

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

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NB

                                       New Business

 

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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.