MIRA INFORM REPORT

 

 

Report No. :

348597

Report Date :

07.11.2015

 

IDENTIFICATION DETAILS

 

Name :

VILLARES METALS S/A

 

 

Registered Office :

Rua Alfredo Dumont Villares, 155 Jardim Santa Carolina 13177-900 Sumaré/SP

 

 

Country :

Brazil

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

31.12.1961

 

 

Legal Form :

Privately held corporation

 

 

Line of Business :

Subject Is Engaged In Iron and Steel Foundry Industry.

 

 

No. of Employees :

1517

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Brazil

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

BRAZIL - ECONOMIC OVERVIEW

 

Characterized by large and well-developed agricultural, mining, manufacturing, and service sectors, and a rapidly expanding middle class, Brazil's economy outweighs that of all other South American countries, and Brazil is expanding its presence in world markets. Since 2003, Brazil has steadily improved its macroeconomic stability, building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments. Since 2008, Brazil became a net external creditor and all three of the major ratings agencies awarded investment grade status to its debt.

After strong growth in 2007 and 2008, the onset of the global financial crisis hit Brazil in 2008. Brazil experienced two quarters of recession, as global demand for Brazil's commodity-based exports dwindled and external credit dried up. However, Brazil was one of the first emerging markets to begin a recovery. In 2010, consumer and investor confidence revived and GDP growth reached 7.5%, the highest growth rate in the past 25 years. GDP growth has slowed since 2011, due to several factors, including: overdependence on exports of raw commodities, low productivity, high operational costs, persistently high inflation, and low levels of investment. After reaching historic lows of 4.5% in early 2014, the unemployment rate remains low, but is rising. Brazil's traditionally high level of income inequality has declined for each of the last 15 years.

Brazil’s fiscal and current account balances have eroded during the past four years as the government attempted to boost economic growth through targeted tax cuts for industry and incentives to spur household consumption. After winning reelection in October 2014 by a historically narrow margin, President Dilma ROUSSEFF appointed a new economic team led by Finance Minister Joaquim LEVY, who introduced a fiscal austerity package intended to restore the primary account surplus to 1.2% of GDP and preserve the country's investment-grade sovereign credit rating.

Brazil seeks to strengthen its workforce and its economy over the long run by imposing local content and technology transfer requirements on foreign businesses, by investing in education through social programs such as Bolsa Familia and the Brazil Science Mobility Program, and by investing in research in the areas of space, nanotechnology, healthcare, and energy.

 

Source : CIA

 

Company name

 

VILLARES METALS S/A

 

 

ADDRESSES

 

MAIN ADDRESS:

RUA ALFREDO DUMONT VILLARES, 155 JARDIM SANTA CAROLINA

ZIP CODE/CITY:

13177-900 - SUMARÉ/SP

 

 

PHONE:

19 3303-8000

FAX:

19 3303-8164

E-MAIL:

eder.dallorto@villaresmetals.com.br

WEB SITE:

www.villaresmetals.com.br

 

BRANCHES:

 

 

 

ADDRESS:

RUA ALFREDO DUMONT VILLARES, 155 - JARDIM SANTA CAROLINA

ZIP CODE/CITY:

13178-902 SUMARÉ/SP

PHONE:

19 3303-8000

FAX:

19 3303-8696

CNPJ:

42.566.752/0004-07

STATE REGISTER:

671.087.638.111

 

 

ADDRESS:

RUA PADRE MADUREIRA, 431 - ÁRVORE GRANDE

ZIP CODE/CITY:

18013-210 SOROCABA/SP

PHONE:

15 4009-9301

FAX:

15 4009-9459

CNPJ:

42.566.752/0006-79

STATE REGISTER:

669.259.259.110

 

 

ADDRESS:

RUA ALFREDO DUMONT VILLARES, 155 - JARDIM SANTA CAROLINA

ZIP CODE/CITY:

13177-900 SUMARÉ/SP

PHONE:

0800-7070577

 

REPRESENTATIVE OFFICES:

 

BELO HORIZONTE/MG

FAX:      31 3444-5257

CELLULAR: 31 9982-2140

 

CAMPINAS/SP

FAX:      19 3227-7079

CELLULAR: 19 9773-1064/9211-6417

 

CURITIBA/PR

FAX:      41 3585-2000

CELLULAR: 41 9972-3421

 

PORTO ALEGRE/RS

FAX:      51 3241-3250

CELLULAR: 51 9968-6913

 

JOINVILLE/SC

FAX:      47 3455-2056

CELLULAR: 47 9984-3289

 

RIO DE JANEIRO/RJ

FAX:      21 2481-1697

CELLULAR: 21 9966-7223

 

SÃO PAULO/SP

FAX:      11 4238-6495

CELLULAR: 11 8181-9138

 

CAXIAS DO SUL/RS

FAX:      54 3211-0046

CELLULAR: 54 8121-6999

 

FOREIGN TRADE OFFICE:

BUENOS AIRES/ARGENTINA

LAVALLE, 643 - 3º PISO - OFICINA "H"

PHONE: 54-11-4322-7882

FAX:    54-11-4322-2210

 

 

LEGAL DATA

 

MAIN ACTIVITIES:

 

IRON AND STEEL FOUNDRY INDUSTRY.

 

LEGAL FORM:

PRIVATELY HELD CORPORATION

 

 

INCORPORATION DATE:

31/12/1961

REGISTER DATE:

31/12/1961

BALANCE SHEET FILING DATE:

31/03

TAX CONTRIBUTOR NUMBER(CNPJ):

42.566.752/0001-64

STATE REGISTER:

671.208.310.111

 

 

SHARE CAPITAL:

R$ 438.876.666,86

LAST REGISTER OF CAPITAL:

31/10/2005

 

BOARD OF DIRECTORS:

 

 

 

ARMIN ANDREAS WUZELLA

PRESIDENT DIRECTOR

MICHAEL WALTER

FINANCIAL DIRECTOR

MARCELO DE ABREU MARINZEK

DIRECTOR

 

 

AUTHORIZED USE OF SIGNATURE:

 

THE DIRECTORS ARE AUTHORIZED TO SIGN ON BEHALF OF THE COMPANY.

 

SHAREHOLDERS / PARTNERS:

 

 

 

VOESTALPINE EDELSTAHL GMBH

99,99%

BOLDRINI E CIA LTDA

0,01%

 

AFFILIATES / SUBSIDIARIES:

 

 

 

NOT AVAILABLE

 

 

 

COMPANY'S BACKGROUND:

 

THE SUBJECT WAS ESTABLISHED ON OCTOBER 31, 1961 TO BE ENGAGED IN THE SAID LINE OF BUSINESS AND UP TO DATE IT IS STILL OPERATING WITHIN THE GENERAL SCENE REPORTED HEREIN.

 

ON FEBRUARY 10, 1992 SUBJECT CHANGED ITS CORPORATE NAME FROM ELETROMETAL METAIS ESPECIAIS LTDA. TO ELETROMETAL S/A METAIS ESPECIAIS. FOLLOWING THIS ON JANUARY 30, 1996 THE SUBJECT ADOPTED THE PRESENT REGISTERED NAME.

 

ON DECEMBER 23, 2003 THE CONTROLLER AÇOS VILLARES S.A. SIGNED WITH BÖLER-UDDEHOLM AG, COMPANY HEADQUARTERED IN VIEN, AUSTRIA, AN INVESTMENT AGREEMENT WHICH, UPON COMPLETED SOME REQUIREMENTS, WILL RESULT IN THE TRANSFERENCE OF SUBJECT'S CONTROLLING SHAREHOLDING TO THAT COMPANY. THE OPERATION WILL BE CARRIED OUT THROUGH THE INCREASE OF SUBJECT'S SHARE CAPITAL, TO BE PAID-UP BY BÖHLER. THE RESOURCES OF THE CAPITAL INCREASE, IN THE AMOUNT OF R$ 217.348.000,00, AND CONTINGENCY PRICE ADJUSTMENT BY INVESTMENTS AND WORKING CAPITAL, WILL BE USED TO PAY TO THE CURRENT CONTROLLER ACOS VILLARES S.A., BY THE ASSUMPTION OF ALL SUBJECT'S FINANCIAL LIABILITIES.

 

BÖHLER-UDDEHOLM AG IS ONE OF THE LARGEST PRODUCERS OF HIGH ALLOY STEEL, AND WORLD LEADER IN STEEL-TOOLING.

 

FURTHER DETAILS ABOUT THE SUBJECT'S HISTORY ARE SO FAR NOT KNOWN.

 

 

PUBLIC INFORMATION:

 

PROTESTS:

 

1  PROTEST,TOTAL AMOUNT R$ 3.809,05

 

DETAILS OF LATEST PROTESTS:

 

NOTARY OFFICE:

DATE:

VALUE:

3º CARTÓRIO DE SC-JOINVILLE

30/10/2015

R$ 3.809,05

 

LAWSUITS:

 

 

 

DATE:

COURT OF LAW:

 

2

STATE LAWSUITS

05/06/14

VARA DE SP-SUMARÉ

 

 

FINANCIAL INFORMATION:

 

GENERAL BALANCE SHEETS AS OF 31/03/2015, 31/03/2014 AND 31/03/2013.

( FIGURES ARE IN THOUSANDS OF REAIS ).

 

ASSETS

 

 

 

CURRENT:

31/03/2015

31/03/2014

31/03/2013

 

 

 

 

CASH AND BANKS

9.904

21.219

49.768

CLIENTS

141.533

127.307

171.502

INVENTORY

306.647

268.982

213.964

RECOVERABLE TAXES

9.260

9.405

8.969

 

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

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

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

TOTAL CURRENT ASSETS

467.344

426.913

444.203

 

LONG-TERM RECEIVABLES:

 

 

 

 

 

 

 

RECOVERABLE TAXES

5.316

6.405

6.514

DEFERRED TAXES

6.367

10.913

15.208

 

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

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

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

TOTAL LONG-TERM RECEIVABLES

11.683

17.318

21.722

 

FIXED ASSETS:

 

 

 

 

 

 

 

INVESTMENTS

14.395

13.266

11.993

FIXED ASSETS

532.675

531.995

521.151

INTANGIBLE

8.341

12.857

13.329

 

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

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

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

TOTAL FIXED ASSETS

555.411

558.118

546.473

 

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

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

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

TOTAL ASSETS

1.034.438

1.002.349

1.012.398

 

LIABILITIES:

 

 

 

CURRENT:

31/03/2015

31/03/2014

31/03/2013

 

 

 

 

LOANS AND FINANCING

138.873

105.861

13.688

SUPPLIERS

224.391

189.461

182.806

TAXES & CONTRIBUTIONS

1.791

2.724

12.939

LABOR OBLIGATIONS

31.920

31.573

25.786

DIVIDENDS

104

120

14.025

 

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

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

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

TOTAL CURRENT LIABILITIES

397.079

329.739

249.244

 

LONG TERM LIABILITIES:

 

 

 

 

 

 

 

LOANS AND FINANCING

100.288

138.520

240.128

PROVISION FOR CONTINGENCIES

5.961

5.318

5.603

 

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

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

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

TOTAL LONG TERM LIABILITIES

106.249

143.838

245.731

 

NET EQUITY:

 

 

 

 

 

 

 

SHARE CAPITAL

438.877

438.877

438.877

CAPITAL RESERVES

4.918

3.672

3.672

LEGAL RESERVES

25.588

25.040

24.411

OTHER COMPREHENSIVE INCOME

1.003

-360

-2.748

PROFIT RESERVES

60.724

61.543

53.211

 

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

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

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

TOTAL NET EQUITY

531.110

528.772

517.423

 

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

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

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

TOTAL LIABILITIES

1.034.438

1.002.349

1.012.398

 

PROFIT AND LOSS ACCOUNTS AS OF 31/03/2015, 31/03/2014 AND 31/03/2013.

( FIGURES ARE IN THOUSANDS OF REAIS ).

 

 

31/03/2015

31/03/2014

31/03/2013

 

 

 

 

NET SALES

914.970

827.741

794.658

(-) COST OF SOLD GOODS

744.174

659.291

634.499

 

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

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

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

GROSS PROFIT

170.796

168.450

160.159

OPERATING REVENUE (EXPENSE)

-136.586

-171.907

-111.626

FINANCIAL REVENUE(EXPENSE)

-16.930

20.333

-13.098

 

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

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

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

OPERATIONAL PROFIT (LOSS)

17.280

16.876

35.435

CONTRIBUTION/INCOME TAX

-6.321

-4.295

-8.427

 

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

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

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

NET PROFIT (LOSS)

10.959

12.581

27.008

 

RATIOS:

31/03/2015

31/03/2014

31/03/2013

 

QUICK RATIO

,40

 

,48

 

,92

 

CURRENT RATIO

1,18

 

1,29

 

1,78

 

ACCOUNTS RECEIVABLE TURNOVER

6,46

TIMES

6,50

TIMES

4,63

TIMES

DAYS' SALES IN RECEIVABLES

55,69

DAYS

55,37

DAYS

77,69

DAYS

INVENTORY TURNOVER

2,43

TIMES

2,45

TIMES

2,97

TIMES

ACCOUNTS PAYABLE PERIOD

108,55

DAYS

103,45

DAYS

103,72

DAYS

RETURN ON ASSETS

,88

TIMES

,83

TIMES

,78

TIMES

SALES TURNOVER ON NET EQUITY

1,72

TIMES

1,57

TIMES

1,54

TIMES

NET WORTH TIE-UP

1,00

 

1,01

 

1,01

 

INDEBTEDNESS

,95

 

,90

 

,96

 

EQUITY RATIO

51,34

%

52,75

%

51,11

%

WORKING CAPITAL RATIO

17,70

%

29,47

%

78,22

%

GENERAL SOLVENCY

2,06

 

2,12

 

2,05

 

RETURN ON NET EQUITY

2,06

%

2,38

%

5,22

%

RETURN ON SALES (PROFIT MARGIN)

1,20

%

1,52

%

3,40

%

GROSS PROFIT MARGIN

18,67

%

20,35

%

20,15

%

OPERATIONAL RESULT

1,89

%

2,04

%

4,46

%

SALES TURNOVER ON LIABILITIES

2,30

TIMES

2,51

TIMES

3,19

TIMES

FOREIGN CURRENCY ON ASSETS

 

 

 

 

 

 

FOREIGN CURRENCY ON LIABILITIES

 

 

 

 

 

 

 

 

EXCHANGE RATE:

 

 

US$ 1,00 = R$ 3,76

 - OFFICIAL RATE ON 04/11/2015

US$ 1,00 = R$ 3,20

 - OFFICIAL RATE ON 31/03/2015

US$ 1,00 = R$ 2,26

 - OFFICIAL RATE ON 31/03/2014

US$ 1,00 = R$ 2,01

 - OFFICIAL RATE ON 31/03/2013

 

 

COMMENTS ON THE FINANCIAL INFORMATION:

 

FOLLOWS ATTACHED WORKSHEET WITH MAIN FINANCIAL RATIOS

 

THE FIGURES AVAILABLE SHOW A SATISFACTORY FINANCIAL STANDING. THE LEVEL OF INDEBTEDNESS IS SOMEHOW HIGH BUT IT IS NOTED NORMAL CURRENT RATIO AND POSITIVE WORKING CAPITAL AMOUNT. IN ADDITION IT SHOWS GROWING SALES AND MADE PROFIT.

 

REMARKS:

 

IN SEPTEMBER 2008 THE SUBJECT ALTERED ITS FISCAL YEAR FROM DECEMBER 31 TO MARCH 31 OF EACH YEAR.

 

 

REAL ESTATE:

 

   OWNED PREMISES ARE VALUED AT R$ 69.959.000,00

 

 

VEHICLES:

 

   OWNED VEHICLES ARE VALUED AT R$ 4.739.000,00

 

 

MACHINES:

 

   OWNED MACHINES AND EQUIPMENTS ARE VALUED AT R$ 492.096.000,00

INSURANCE

 

NOT AVAILABLE

 

INSURANCE COMPANY:

NOT AVAILABLE

COVERAGE:

FIRE, CIVIL LIABILITY, THEFT AND OTHERS

VALUE:

R$ 1.005.000.000,00

 

 

BANKING REFERENCES

 

 

BRANCH/PHONE:

CITY:

BANCO SANTANDER (BRASIL) S/A

11 3012-7037

SÃO PAULO/SP

BANCO DO BRASIL S/A

11 2128-7226

SÃO PAULO/SP

BANCO BRADESCO S/A

11 2178-4148

SÃO BERNARDO DO CAMPO/SP

 

REMARKS: IN BRAZIL THE BANKS ARE PROHIBITED BY LAW TO PROVIDE INFORMATION OR ANY KIND OF COMMENTS ABOUT THEIR CLIENTS. DUE TO THIS LAW PROHIBITION WE ARE UNABLE TO PROVIDE ANY BANKING DETAILS.

 

ACCORDING TO THE CENTRAL BANK OF BRAZIL OFFICIAL REPORT, THE COMPANY HAS NO RETURNED CHECKS UP TO DATE. (IN THE TERMS OF "CIRCULAR 1682 BRAZILIAN CENTRAL BANK"). DATE RESEARCHED NOVEMBER 04, 2015.

 

 

ACTIVITIES COMMENTS

 

SUBJECT IS ENGAGED IN IRON AND STEEL FOUNDRY INDUSTRY.

 

IMPORT AND EXPORT:

 

 IMPORTS FROM:

UNITED STATES, CHILE, AUSTRIA, GERMANY AND SWITZERLAND.

 

 EXPORTS TO:

UNITED STATES, ARGENTINA, ITALY AND HOLLAND.

 

 

MAIN CLIENTS:

 

 

 

 

 

DOMESTIC CLIENTS:

CITY:

PHONE:

AÇOS TREFITA LTDA

SÃO PAULO/SP

11 2795-2555

ARMCO BRASIL S/A

SÃO PAULO/SP

11 6915-2600

CARBINOX IND. E COM. LTDA

MOGI DAS CRUZES/SP

11 4795-9000

DORMER

SÃO PAULO/SP

11 5660-3034

EATON CORPORATION BRASIL

SÃO JOSÉ DOS CAMPOS/SP

12 3331-3233

JATI-SERVIÇOS COM. E IMP. DE AÇOS LTDA

SÃO PAULO/SP

11 2172-0405

SALGUEIRO IND. E COM. DE AÇO LTDA

SÃO PAULO/SP

11 2274-0133

SIFCO S/A

JUNDIAÍ/SP

11 7398-1500

TAURUS SL

PORTO ALEGRE/RS

51 3021-3000

TRW BRASIL S/A

SANTO ANDRÉ/SP

11 3416-4400

VETCO GRAY

JANDIRA/SP

11 4772-3300

WELLSTREAM DO BRASIL INDÚSTRIA E SERVIÇOS

RIO DE JANEIRO/RJ

21 2107-6500

 

FOREIGN CLIENTS:

COUNTRY:

 

EATON

ITALY

 

OH & R/TIMKEN

UNITED STATES

 

STELL INDUSTRIA

UNITED STATES

 

 

STAFF:

 

THE COMPANY HAS: 1517 EMPLOYEE(S)

 

 

CONCEPT AND FULFILMENT

 

THE SUBJECT IS A WELL-ESTABLISHED AND LARGE-SIZED COMPANY. IT BELONGS TO AN IMPORTANT INDUSTRIAL GROUP AND OPERATES WITH A GROWING SCALE OF ACTIVITIES AND AN EXCELLENT REPUTATION.

 

THE COMPANY HAS TRADE RELATIONS WITH SEVERAL SUPPLIERS IN BRAZIL. THE SUPPLIERS EXTEND CREDIT FACILITIES TO THE SUBJECT IN TERMS AND AMOUNTS ACCORDING TO THE COMPANY'S NEEDS AND SO FAR NO PAYMENT PROBLEMS ARE NOTED.

 

MOST OF THE SUPPLIERS WHICH PROVIDED INFORMATION REPORTED PROMPT PAYMENTS, THUS THE SUBJECT HAS A GOOD PAYMENT RECORD.

 

THE LAWSUITS REPORTED ARE NOT RELATED WITH TRADE DEBTS. THEY ARE RELATED TO TAX DEBTS THAT FOR ANY REASON THE COMPANY HAS NOT YET PAID. NEVERTHELESS WE POINT OUT THAT THE SAID LAWSUITS DO NOT AFFECT THE COMPANY'S TRADE REPUTATION.

 

THE PROTEST IS IRRELEVANT.

 

MAIN SUPPLIERS:

 

 

 

 

 

DOMESTIC SUPPLIERS:

 

PHONE:

CIA BRASILEIRA DE PETRÓLEO IPIRANGA

 

19 3874-1538

CIA DE FERRO LIGAS DA BAHIA - FERBASA

POJUCA/BA

71 3645-8740

CIA DE GÁS DE SÃO PAULO - COMGAS

CAMPINAS/SP

19 3797-9750

CIA NIQUEL TOCANTINS

 

11 6956-8600

COLETTI COM. SUCATAS DE FERRO E AÇOS LTDA

 

19 3433-4897

CPFL COMERCIALIZAÇÃO BRASIL LTDA

CAMPINAS/SP

19 3756-8936

SUPERGÁSBRAS DISTRIBUIDORA DE GAZ S/A

 

19 3874-2464

VOTORANTIM METAIS NIQUEL S.A

SÃO PAULO/SP

11 2159-3116

WHITE MARTINS GASES INDUSTRIAIS S/A

 

12 3232-4666

 

FOREIGN SUPPLIERS:

COUNTRY:

 

CODELCO

CHILE

 

CORPORACION NACIONAL DEL COBRE DE CHILE - CODELCO

SANTIAGO, CHILE

(562) 690-3000

CRONIMET FERROLEGIERRUNGEN GMBH

GERMANY

+49 721 95225-0

GLENCORE INTERNATIONAL AG - RIO DE JANEIRO

BAAR, SWITZERLAND

21 3873-3304

INTERALLOYS TRADING AND BUSINESS

AUSTRIA

+43 1 504-0651

MOLIBDENOS Y METALES S/A - MOLYMET

SANTIAGO, CHILE

56-2 3683632

 

PAYMENT HISTORY:

 

18 SUPPLIERS REPORTED PAYMENTS:

   TOTAL AMOUNT:  R$ 5.394.327,00

 

AMOUNT OF INVOICES PAID: 112

TOTAL OF PROMPT PAYMENTS: 93,9%

TOTAL OF DELAYED PAYMENTS: 6,1%

 

HIGHEST INVOICE: R$ 125.000,00

HIGHEST CREDIT: R$ 125.000,00

 

OUTSTANDING INVOICES DUE WITHIN THE NEXT 30 DAYS:

 

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

SUPPLIERS:

INVOICES:

TOTAL AMOUNT:

DUE WITHIN 30 DAYS

1

4

R$ 9.929,00

 

 

FINAL OPINION

 

THE SUBJECT IS A WELL-ESTABLISHED COMPANY IN BUSINESS FOR SEVERAL YEARS. IT SHOWS SATISFACTORY FINANCIAL STANDING BUT THE COMPANY KEEPS OPERATING NORMALLY AND KEEPS MEETING ITS TRADE AND FINANCIAL COMMITMENTS PROPERLY.

 

BASED ON THE OVERALL INFORMATION AVAILABLE THE SUBJECT MAY BE CONSIDERED FOR NORMAL TRADE COMMITMENTS. CREDIT FACILITIES ARE STILL ADVISABLE WITHIN TERMS AND AMOUNTS ADEQUATE TO THE SUBJECT'S SCALE OF BUSINESS.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.79

UK Pound

1

Rs.99.95

Euro

1

Rs.71.55

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

Report Prepared by :

TRU

 

               

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.