MIRA INFORM REPORT

 

 

Report No. :

302474

Report Date :

10.01.2015

 

IDENTIFICATION DETAILS

 

Name :

FRABA PTE. LTD.

 

 

Registered Office :

20, Kallang Avenue, 01-00, Pico Creative Centre, 339411

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

25.03.2009

 

 

Com. Reg. No.:

200905232-C

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of rotary encoders and inclinometers

 

 

No. of Employees :

Not Available

 

RATING & COMMENTS

 

MIRA’s Rating :

Ca

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Moderate

Payment Behaviour :

Slow

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

Singapore

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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

 

 

 

 

Company name and address

 

 

REGISTRATION NO.

:

200905232-C

COMPANY NAME

:

FRABA PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

25/03/2009

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

20, KALLANG AVENUE, 01-00, PICO CREATIVE CENTRE, 339411, SINGAPORE.

BUSINESS ADDRESS

:

20 KALLANG AVENUE, PICO CREATIVE CENTRE #01-00, 339411, SINGAPORE.

TEL.NO.

:

65-65148880

FAX.NO.

:

65-62711792

WEB SITE

:

WWW.FRABA.COM

CONTACT PERSON

:

INGO AKIRA MOENCH ( DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF ROTARY ENCODERS AND INCLINOMETERS

ISSUED AND PAID UP CAPITAL

:

50,000.00 ORDINARY SHARE, OF A VALUE OF SGD 50,000.00

SALES

:

SGD 2,112,848 [2013]

NET WORTH

:

SGD (464,859) [2013]

STAFF STRENGTH

:

N/A

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

GOOD

MANAGEMENT CAPABILITY

:

WEAK

COMMERCIAL RISK

:

MODERATE

CURRENCY EXPOSURE

:

MODERATE

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MATURE

 

 

HISTORY / BACKGROUND

 

The Subject is a private limited company and is allowed to have a minimum of one and a maximum of forty-nine shareholders. As a private limited company, the Subject must have at least two directors. A private limited company is a separate legal entity from its shareholders. As a separate legal entity, the Subject is capable of owning assets, entering into contracts, sue or be sued by other companies. The liabilities of the shareholders are to the extent of the equity they have taken up and the creditors cannot claim on shareholders' personal assets even if the Subject is insolvent. The Subject is governed by the Companies Act and the company must file its annual returns, together with its financial statements with the Registrar of Companies.

The Subject is principally engaged in the (as a / as an) trading of rotary encoders and inclinometers.

 

The immediate holding company of the Subject is FRABA B.V., a company incorporated in NETHERLANDS.

 

Share Capital History

Date

Issue & Paid Up Capital

09/01/2015

SGD 50,000.00

 

The major shareholder(s) of the Subject are shown as follows :

 

Name

Address

IC/PP/Loc No

Shareholding

(%)

FRABA B.V.

JAN CAMPERTSTRAAT, 5, 6416SG, HEERLEN, NETHERLANDS.

T09UF0731

50,000.00

100.00

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

------

50,000.00

100.00

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

INGO AKIRA MOENCH

Address

:

36, STURDEE ROAD, 25-16, KERRISDALE, 207855, SINGAPORE.

IC / PP No

:

S7188314J

Nationality

:

SINGAPOREAN

Date of Appointment

:

19/05/2009

 

DIRECTOR 2

 

Name Of Subject

:

CHRISTIAN FRANK LEESER

Address

:

BREITE STR. 70, COLOGNE, 50667, GERMANY.

IC / PP No

:

C4G4KVJFX

Nationality

:

GERMAN

Date of Appointment

:

25/03/2009



MANAGEMENT

 

 

 

1)

Name of Subject

:

INGO AKIRA MOENCH

Position

:

DIRECTOR

 

2)

Name of Subject

:

MICHELLE

Position

:

STAFF

 

 

AUDITOR

 

Auditor

:

JOE TAN & ASSOCIATES PUBLIC ACCOUNTING CORPORATION

Auditor' Address

:

N/A

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

TAN KEE SENG

IC / PP No

:

S0377069I

Address

:

18G, LOWLAND ROAD, 547387, SINGAPORE.

 

 

 

BANKING


No Banker found in our databank.

ENCUMBRANCE (S)


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

 

 

LITIGATION 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 its 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

[

]

Good 31-60 Days

[

X

]

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

:

ROTARY ENCODERS AND INCLINOMETERS

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of rotary encoders and inclinometers.

The Subject markets sensors for high precision industrial angle and displacement detection applications.

The Subject sells wide range of Rotary Encoders and Inclinometers, which are high performance, high quality and low cost. The encoders are available as absolute optical rotary encoders and absolute magnetic rotary encoders; inclinometers are available as industrial line inclinometers and heavy-duty line inclinometers.

The Applications are as follows:

Solar & wind industry
Machine tool manufacturing
Construction machinery
Printing & packaging OEMs etc.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

65--65148880

Current Telephone Number

:

65-65148880

Match

:

YES

Address Provided by Client

:

20 KALLANG AVENUE, PICO CREATIVE CENTRE #01-00, SINGAPORE - 339411,

Current Address

:

20 KALLANG AVENUE, PICO CREATIVE CENTRE #01-00, 339411, SINGAPORE.

Match

:

YES

 

Other Investigations


we contacted one of the staff from the Subject and she provided some information.

The given name POSITAL is the Subject's brand name.



FINANCIAL ANALYSIS

 

Profitability

Turnover

:

Increased

[

43.59%

]

Profit/(Loss) Before Tax

:

Increased

[

96.72%

]

Return on Shareholder Funds

:

Unfavourable

[

(6.67%)

]

Return on Net Assets

:

Unfavourable

[

(7.32%)

]

The increase in turnover could be due to the Subject adopting an aggressive marketing strategy.The higher profit could be attributed to the increase in turnover. The Subject's unfavourable returns on shareholders' funds indicate the management's inefficiency in utilising its assets to generate returns.

Working Capital Control

Stock Ratio

:

Nil

[

0 Days

]

Debtor Ratio

:

Favourable

[

24 Days

]

Creditors Ratio

:

Favourable

[

2 Days

]

As the Subject is a service oriented company, the Subject does not need to keep 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

:

Unfavourable

[

0.46 Times

]

Current Ratio

:

Unfavourable

[

0.46 Times

]

A low liquid ratio means that the Subject may be facing working capital deficiency. If the Subject cannot obtain additional financing or injection of fresh capital, it may face difficulties in meeting its short term obligations.

Solvency

Interest Cover

:

Favourable

[

11.25 Times

]

Gearing Ratio

:

Favourable

[

0.00 Times

]

The interest cover showed that the Subject was able to service the interest. The favourable interest cover could indicate that the Subject was making enough profit to pay for the interest accrued. 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 :

Generally, the Subject's performance has improved with higher turnover and profit. Due to its weak liquidity position, the Subject will be faced with problems in meeting all its short term obligations if no short term loan is obtained or additional capital injected into the Subject. With the favourable interest cover, the Subject could be able to service all the accrued interest without facing any difficulties. 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 : POOR

 

 

 

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)




 

INDUSTRY ANALYSIS

 

INDUSTRY :

MANUFACTURING

In the third quarter of 2014, manufacturing output has increased by 1.9%, extending the 1.5% growth in the previous quarter. Growth was largely driven by the biomedical manufacturing and chemicals clusters. Besides, for the whole 2013, the manufacturing sector grew by 1.7%, an uptick from the 0.3% growth recorded in the previous year. All clusters recorded an expansion in 2013, except the biomedical manufacturing cluster.

The chemicals cluster grew by 5.2% in the third quarter of 2014. Growth was led by the petrochemicals and specialty chemicals segments, which expanded by 8.9% and 7.1% respectively. By contrast, the petroleum segment contracted by 4.2% in the third quarter of 2014 due to plant maintenance shutdowns. For the year of 2013, the chemicals cluster grew only by 0.7%.

Besides, output of the biomedical manufacturing cluster expanded by 9.0% in the third quarter of 2014. The medical technology segment posted robust growth of 23% due to higher production of medical instruments and supplies, while the output of the pharmaceuticals segment rose by 6.2%. However, in the whole of 2013, the biomedical manufacturing cluster recorded only a flat growth.

In the third quarter of 2014, the transport engineering cluster contracted by 2.0%, dragged down by the aerospace segment. Output in the aerospace segment plunged by 18% on the back of fewer repair jobs from commercial airlines. This was mitigated by the 4.1% growth in the marine & offshore engineering segment, which was supported by higher contributions from rig building projects. Nonetheless, for the whole of 2013, the transport engineering cluster grew by 5.2%.

Moreover, output of the precision engineering cluster increased by 1.3% in the third quarter of 2014. The machinery & systems segment grew by 6.2%, supported by higher demand for semiconductor-related equipment and mechanical engineering work. This was partly offset by the decline in the output of the precision modules & components segment. Conversely, in the full year of 2013, the precision engineering cluster's output declined by 5.6%.

Furthermore, in the third quarter of 2014, output of the general manufacturing industries declined by 3.0%. The 2.1% growth in the food, beverages & tobacco segment was more than offset by declines in the other two segments. In particular, the miscellaneous industries segment contracted by 4.7% on the back of lower output in construction-related products, such as concrete & cement products and steel structural components. For the full year of 2013, the general manufacturing cluster grew by 2.8%.

Besides, in the third quarter of 2014, the electronics cluster expanded by 0.9%, reversing the 5.0% contraction in the previous quarter. Growth was supported by an expansion in the computer peripherals (6.3%) and data storage (2.6%) segments. Moreover, for the year 2013, the electronics cluster expanded by 3.5%.

OVERALL INDUSTRY OUTLOOK : MATURE




 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2009, the Subject is a Private Limited company, focusing on trading of rotary encoders and inclinometers. Having been in business for more than 5 years, the Subject has established a remarkable clientele base for itself which has contributed to its business growth. The Subject have a strong support from its holding company. However, the Subject does not have a strong capital position of SGD 50,000. Without a strong capital, the Subject may face difficulties to expand its business compared to other large corporation.

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. Overall, we regard that the Subject's management capability is weak. Without capable management, the Subject is unlikely to be successful and often contribute to unacceptable levels of accountability. Weak management can affect productivity, profitability, sales growth and ultimately can result in the failure of a business.

We noted that both the turnover and profits have increased compared to the previous year. The higher profit could be due to increase in turnover and better control over its operating costs. The Subject has generated an unfavourable return on shareholders' funds indicating that the management was inefficient in utilising its funds to generate return. Due to its weak liquidity position, the Subject may face working capital deficiency in meeting its short term financial obligations if no fresh capital are injected into the Subject. 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. The Subject's unfavourable financial performance over the years has wiped out its shareholders' funds to a deficit of SGD -464,859. Therefore, the Subject as a going concern is much dependent on its ability to generate sufficient cash flow and obtain additional financing to meet its future obligations.

Without a strong assets backing, the Subject may face difficulties in getting loans for its future expansion and continued growth .

Overall, the Subject's payment habit is good as the Subject has a good credit control and it could be taking advantage of the cash discounts while maintaining a good reputation with its creditors.

The industry has reached its optimum level and is generally stable. It is saturated and very competitive. Thus, the Subject's growth prospect is very much depends on its capacity in sustaining its performance in the market.

Based on the above unfavourable condition, we regard granting credit to the Subject to be quite risky. Hence, credit is not recommended.

 




 

PROFIT AND LOSS ACCOUNT

 

 

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

FRABA PTE. LTD.

 

Financial Year End

2013-12-31

2012-12-31

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

SGD

SGD

TURNOVER

2,112,848

1,471,449

Other Income

6,135

33,151

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

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

Total Turnover

2,118,983

1,504,600

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

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

PROFIT/(LOSS) FROM OPERATIONS

30,986

15,751

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

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

PROFIT/(LOSS) BEFORE TAXATION

30,986

15,751

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

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

PROFIT/(LOSS) AFTER TAXATION

30,986

15,751

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(545,845)

(561,596)

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

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

As restated

(545,845)

(561,596)

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(514,859)

(545,845)

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(514,859)

(545,845)

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

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

INTEREST EXPENSE (as per notes to P&L)

Others

3,024

9,063

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

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

3,024

9,063

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

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

 

BALANCE SHEET

 

 

FRABA PTE. LTD.

 

ASSETS EMPLOYED:

FIXED ASSETS

27,767

10,953

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

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

TOTAL LONG TERM ASSETS

27,767

10,953

Trade debtors

137,936

167,267

Other debtors, deposits & prepayments

27,211

32,134

Cash & bank balances

261,742

263,774

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

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

TOTAL CURRENT ASSETS

426,889

463,175

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

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

TOTAL ASSET

454,656

474,128

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

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

CURRENT LIABILITIES

Trade creditors

9,173

28,478

Other creditors & accruals

103,082

12,232

Interest payable

18,590

15,566

Amounts owing to holding company

672,870

812,897

Amounts owing to director

115,800

100,800

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

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

TOTAL CURRENT LIABILITIES

919,515

969,973

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

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

NET CURRENT ASSETS/(LIABILITIES)

(492,626)

(506,798)

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

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

TOTAL NET ASSETS

(464,859)

(495,845)

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

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

SHARE CAPITAL

Ordinary share capital

50,000

50,000

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

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

TOTAL SHARE CAPITAL

50,000

50,000

Retained profit/(loss) carried forward

(514,859)

(545,845)

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

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

TOTAL RESERVES

(514,859)

(545,845)

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

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

SHAREHOLDERS' FUNDS/EQUITY

(464,859)

(495,845)

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

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

(464,859)

(495,845)

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

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

 

 

 

FINANCIAL RATIO

 

 

FRABA PTE. LTD.

 

TYPES OF FUNDS

Cash

261,742

263,774

Net Liquid Funds

261,742

263,774

Net Liquid Assets

(492,626)

(506,798)

Net Current Assets/(Liabilities)

(492,626)

(506,798)

Net Tangible Assets

(464,859)

(495,845)

Net Monetary Assets

(492,626)

(506,798)

BALANCE SHEET ITEMS

Total Borrowings

0

0

Total Liabilities

919,515

969,973

Total Assets

454,656

474,128

Net Assets

(464,859)

(495,845)

Net Assets Backing

(464,859)

(495,845)

Shareholders' Funds

(464,859)

(495,845)

Total Share Capital

50,000

50,000

Total Reserves

(514,859)

(545,845)

LIQUIDITY (Times)

Cash Ratio

0.28

0.27

Liquid Ratio

0.46

0.48

Current Ratio

0.46

0.48

WORKING CAPITAL CONTROL (Days)

Stock Ratio

0

0

Debtors Ratio

24

41

Creditors Ratio

2

7

SOLVENCY RATIOS (Times)

Gearing Ratio

0.00

0.00

Liabilities Ratio

(1.98)

(1.96)

Times Interest Earned Ratio

11.25

2.74

Assets Backing Ratio

(9.30)

(9.92)

PERFORMANCE RATIO (%)

Operating Profit Margin

1.47

1.07

Net Profit Margin

1.47

1.07

Return On Net Assets

(7.32)

(5.00)

Return On Capital Employed

(7.32)

(5.00)

Return On Shareholders' Funds/Equity

(6.67)

(3.18)

Dividend Pay Out Ratio (Times)

0.00

0.00

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.40

UK Pound

1

Rs.94.17

Euro

1

Rs.73.61

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

NIS

 

               

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

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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.