MIRA INFORM REPORT
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Report No. : |
325745 |
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Report Date : |
08.06.2015 |
IDENTIFICATION DETAILS
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Name : |
TOKUYAMA CORPORATION |
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Registered Office : |
Kasumigaseki Common Gate West Tower, 3-2-1 Kasumigaseki Chiyodaku Tokyo 100-8983 |
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Country : |
Japan |
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Financials (as on) : |
31.03.2015 |
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Date of Incorporation : |
Feb., 1918 |
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Legal Form : |
Limited Company (Kabushiki Kaisha) |
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Line of Business : |
Manufacturer of Industrial Chemicals, Cement, Polycrystalline Silicon. |
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No. of Employees : |
5,852 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
Yen 5,574.5 Million |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
JAPAN - ECONOMIC OVERVIEW
In the years following World War II, government-industry
cooperation, a strong work ethic, mastery of high technology, and a
comparatively small defense allocation (1% of GDP) helped Japan develop a
technologically advanced economy. Two notable characteristics of the post-war
economy were the close interlocking structures of manufacturers, suppliers, and
distributors, known as keiretsu, and the guarantee of lifetime employment for a
substantial portion of the urban labor force. Both features are now eroding
under the dual pressures of global competition and domestic demographic change.
Since the complete shutdown of Japan’s nuclear reactors after the earthquake
and tsunami disaster in 2011, Japan's industrial sector has become heavily
dependent on imported raw materials and fuels. A small agricultural sector is
highly subsidized and protected, with crop yields among the highest in the
world. While self-sufficient in rice production, Japan imports about 60% of its
food on a caloric basis. For three decades, overall real economic growth had
been spectacular - a 10% average in the 1960s, a 5% average in the 1970s, and a
4% average in the 1980s. Growth slowed markedly in the 1990s, averaging just
1.7%, largely because of the after effects of inefficient investment and an
asset price bubble in the late 1980s that required a protracted period of time
for firms to reduce excess debt, capital, and labor. Modest economic growth
continued after 2000, but the economy has fallen into recession four times
since 2008. A sharp downturn in business investment and global demand for
Japan's exports in late 2008 pushed Japan into recession. Government stimulus
spending helped the economy recover in late 2009 and 2010, but the economy
contracted again in 2011 as the massive 9.0 magnitude earthquake and the
ensuing tsunami in March disrupted manufacturing. A sales tax increase caused
the economy to contract during the 2nd and 3rd quarters of 2014. The economy
has largely recovered in the three years since the disaster, but reconstruction
in the Tohoku region has been uneven due to labor shortages. Prime Minister
Shinzo ABE has declared the economy his government's top priority; he has
overturned his predecessor's plan to permanently close nuclear power plants and
is pursuing an economic revitalization agenda of fiscal stimulus, monetary
easing, and structural reform. Japan joined the Trans Pacific Partnership
negotiations in 2013, a pact that would open Japan's economy to increased
foreign competition and create new export opportunities for Japanese
businesses. Measured on a purchasing power parity (PPP) basis that adjusts for
price differences, Japan in 2014 stood as the fourth-largest economy in the
world after second-place China, which surpassed Japan in 2001, and third-place
India, which edged out Japan in 2012. The government will continue a
longstanding debate on restructuring the economy and reining in Japan's huge
government debt, which amounts to more than 240% of GDP. To help raise
government revenue and reduce public debt, Japan decided in 2013 to gradually
increase the consumption tax to a total of 10% by 2015, although the government
in 2014 decided to postpone the final phase of the increase until 2017 to give
the economy time to recover from the 2014 increase. Japan is making progress on
ending deflation due to a weaker yen and higher energy costs, but reliance on
exports to drive growth and an aging, shrinking population pose other major
long-term challenges for the economy.
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Source
: CIA |
Company
Name and address
TOKUYAMA CORPORATION
REGD NAME: KK Tokuyama
MAIN OFFICE: Kasumigaseki Common Gate West Tower, 3-2-1 Kasumigaseki Chiyodaku Tokyo
100-8983 JAPAN
Tel: 03-6205-4800 Fax: 03-6205-4886
URL: http://www.tokuyama.co.jp/
E-Mail address: info@tokuyama.co.jp
ACTIVITIES
Mfg of industrial
chemicals, cement, polycrystalline silicon
BRANCHES
Yamaguchi,
Ibaraki, other (Tot 8)
OVERSEAS
Germany, Korea
(2), China (6), Taiwan, Singapore, Malaysia, USA (2) (Tot 14)
Tokuyama Asia
Pacific Pte Ltd (Singapore); Tokuyama Trading (Shanghai) Co Ltd, other (Tot
12).
FACTORIES
(Refinery)
Tokuyama; (Factory) Kashima, Taipei, Korea, and Singapore
CHIEF
EXEC
TATSUO SEGAWA,
PRES
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 302,085 M
PAYMENTSREGULAR CAPITAL Yen 53,458 M
TREND STEADY WORTH Yen 169,445 M
STARTED 1918 EMPLOYES 5,852
COMMENT
MFR OF CHEMICALS, CEMENT, SILICON, OTHER.
FINANCIAL SITUATION COSIDERED FAIR AND GOOD FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT:
YEN 5,574.5 MILLION, 30 DAYS NORMAL TERMS.
Unit: In Million Yen
Forecast (or estimated) figures for 31/03/2016
fiscal term
HIGHLIGHTS
The subject company
was established originally in 1918 as producer of soda ash and caustic soda. This is a leading
chemical mfr. Business diversified
into cement, construction materials
and such synthetic resins as polypropylene. Major domestic maker of PVC.
One of world’s leading makers
of polycrystalline silicon for use in production of semiconductors and solar cells.
FINANCIAL
INFORMATION
The sales volume
for Mar/2015 fiscal term amounted to Yen 302,085 million, a 5.1% up from Yen
287,330 million in the previous
term. Sales
of cement paused, but sales of polycrystalline for semiconductors were
favorable. The recurring profit was
posted at Yen 12,920 million and the net losses at Yen 65,349 million,
respectively, compared with Yen 14,965 million recurring profit and Yen 10,218
million net profit, respectively, a year ago.
For the current
term ending Mar 2016 the recurring profit is projected at Yen 14,000 million
and the net profit at Yen 8,000 million, on a 3.3% rise in turnover, to Yen
312,000 million. Sales of silicon for application in semiconductors will fare well. Cement sales will
improve.
The financial
situation is considered FAIR and
good for ORDINARY business engagements.
Max
credit limit is estimated at Yen 5,574.5 million, on 30 days
normal terms.
REGISTRATION
Date Registered:
Feb 1918
Legal Status: Limited Company (Kabushiki Kaisha)
Authorized: 700 million shares
Issued:
349,671,876 shares
Sum: Yen 53,458 million
Major shareholders (%): Master Trust Bank of Japan T (6.4), Japan Trustee Services T (3.7), Nippon Life Ins (3.1), CBNYDFA Int’l Small Cap Value P (2.8), Yamaguchi Bank (2.3), Meiji Yasuda Life Ins (2.1), MUFG (2.0), Sojitz Corp (1.8), Sumitomo Metal Mining (1.6), Mitsubishi UFJ Trust Bank (1.6); foreign owners (21.5)
No. of shareholders: 23,153
Listed on the S/Exchange (s) of: Tokyo
Managements: Kazuhisa Kogo, ch; Tatsuo Segawa, pres; Hisashi Yasui, mgn dir; Hideyoshi Koya, mgn dir; Takeshi Nakahara, mgn dir; Takao Suzuki, mgn dir; Hideki Adachi, mgn dir; Akihiro Hamada, mgn dir
Nothing detrimental is known as to the commercial morality of executives.
Related companies: Sun Tox Co, Shin Daiichi Vinyl Corp, Excel Shanon Corp, other
OPERATION
Activities: Manufactures chemicals, specialty products, cement & construction materials;
(Sales Breakdown by
Divisions):
Chemicals (27.2%): caustic soda, propylene oxide, methylene chloride, soda ash, calcium chloride, vinyl chloride monomer/polymer, isopropylene film, isopropyl alcohol (IPA), microporous film;
Specialty Products (15.4%): Si (polycrystalline silicon, precipitated silica, fumed silica); Advanced Materials (aluminum nitride, pharmaceutical intermediates, optical lens materials, high purity chemicals for semiconductor base materials, cleaning solvents & systems, ion exchange membranes, dental materials, medical diagnosis systems);
Cement, Building Materials (24.0%): cement, ready-mixed concrete, plastic window sashes, cement type stabilizer, waste recycling;
Life & Amenity (17.3%): fine chemicals, microporous film, dental materials, ion exchange membranes,
Others (9.0%)
Overseas Sales Ratio (19.0%):
Clients: [Mfrs, wholesalers] Shin Daiichi Vinyl Corp, Sumco, Cargill Japan, Hitachi High Technologies, Marubeni Corp, other.
No. of accounts: 1,000
Domestic areas of activities: Nationwide
Suppliers: [Mfrs, wholesalers] Idemitsu Kosan, Mitsui & Co, Tokuyama Logistics, Itochu Corps, Mitsubishi Corp, other.
Payment record: Slow but correct
Location: Business area in Tokyo. Office premises at the caption address are leased and maintained satisfactorily.
Bank References:
MUFG (Tokyo)
Mizuho Bank (Uchisaiwaicho)
Relations: Satisfactory
FINANCIALS
(In Million Yen)
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FINANCES: (Consolidated
in million yen) |
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Terms Ending: |
31/03/2015 |
31/03/2014 |
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INCOME STATEMENT |
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Annual Sales |
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302,085 |
287,330 |
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Cost of Sales |
218,917 |
206,989 |
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GROSS PROFIT |
83,167 |
80,340 |
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Selling & Adm Costs |
63,636 |
60,069 |
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OPERATING PROFIT |
19,530 |
20,270 |
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Non-Operating P/L |
-6,610 |
-5,305 |
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RECURRING PROFIT |
12,920 |
14,965 |
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NET PROFIT |
-65,349 |
10,218 |
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BALANCE SHEET |
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Cash |
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61,364 |
27,605 |
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Receivables |
69,371 |
67,495 |
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Inventory |
45,088 |
41,905 |
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Securities, Marketable |
55,053 |
43,050 |
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Other Current Assets |
13,099 |
11,568 |
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TOTAL CURRENT ASSETS |
243,975 |
191,623 |
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Property & Equipment |
253,331 |
323,100 |
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Intangibles |
9,784 |
10,131 |
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Investments, Other Fixed Assets |
47,437 |
51,461 |
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TOTAL ASSETS |
554,527 |
576,315 |
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Payables |
40,567 |
40,089 |
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Short-Term Bank Loans |
12,212 |
12,347 |
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Other Current Liabs |
64,519 |
46,861 |
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TOTAL CURRENT LIABS |
117,298 |
99,297 |
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Debentures |
45,000 |
50,000 |
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Long-Term Bank Loans |
191,552 |
164,278 |
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Reserve for Retirement Allw |
1,162 |
1,112 |
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Other Debts |
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30,070 |
25,175 |
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TOTAL LIABILITIES |
385,082 |
339,862 |
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MINORITY INTERESTS |
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Common
stock |
53,458 |
53,458 |
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Additional
paid-in capital |
57,670 |
57,670 |
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Retained
earnings |
39,286 |
107,155 |
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Evaluation
p/l on investments/securities |
5,829 |
8,369 |
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Others |
14,636 |
11,229 |
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Treasury
stock, at cost |
(1,434) |
(1,428) |
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TOTAL S/HOLDERS` EQUITY |
169,445 |
236,453 |
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TOTAL EQUITIES |
554,527 |
576,315 |
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CONSOLIDATED CASH FLOWS |
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Terms ending: |
31/03/2015 |
31/03/2014 |
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Cash
Flows from Operating Activities |
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30,772 |
34,105 |
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Cash
Flows from Investment Activities |
-25,519 |
-64,402 |
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Cash
Flows from Financing Activities |
40,502 |
45,939 |
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Cash,
Bank Deposits at the Term End |
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116,122 |
69,973 |
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ANALYTICAL RATIOS Terms ending: |
31/03/2015 |
31/03/2014 |
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Net
Worth (S/Holders' Equity) |
169,445 |
236,453 |
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Current
Ratio (%) |
208.00 |
192.98 |
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Net
Worth Ratio (%) |
30.56 |
41.03 |
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Recurring
Profit Ratio (%) |
4.28 |
5.21 |
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Net
Profit Ratio (%) |
-21.63 |
3.56 |
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Return
On Equity (%) |
-38.57 |
4.32 |
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.63.90 |
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1 |
Rs.97.98 |
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Euro |
1 |
Rs.71.82 |
INFORMATION DETAILS
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Analysis Done by
: |
SAN |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.