MIRA INFORM REPORT

 

 

Report No. :

349572

Report Date :

17.11.2015

 

IDENTIFICATION DETAILS

 

Name :

KELPAC MEDICAL SDN. BHD.

 

 

Registered Office :

3-02, Jalan Sri Perkasa 2/18, Taman Tampoi Utama, 81200 Johor Bahru, Johor

 

 

Country :

Malaysia

 

 

Date of Incorporation :

14.05.2012

 

 

Com. Reg. No.:

1001600-H

 

 

Legal Form :

Private Limited (Limited By Share)

 

 

Line of Business :

Subject is engaged in the manufacturing of tubing medical.

 

 

No. of Employees :

45 [2015]

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Unknown

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)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

MALAYSIA - ECONOMIC OVERVIEW

 

Malaysia, a middle-income country, has transformed itself since the 1970s from a producer of raw materials into an emerging multi-sector economy. Under current Prime Minister NAJIB, Malaysia is attempting to achieve high-income status by 2020 and to move farther up the value-added production chain by attracting investments in Islamic finance, high technology industries, biotechnology, and services. NAJIB's Economic Transformation Program (ETP) is a series of projects and policy measures intended to accelerate the country's economic growth. The government has also taken steps to liberalize some services sub-sectors. Malaysia is vulnerable to a fall in world commodity prices or a general slowdown in global economic activity.

 

The NAJIB administration is continuing efforts to boost domestic demand and reduce the economy's dependence on exports. Nevertheless, exports - particularly of electronics, oil and gas, palm oil and rubber - remain a significant driver of the economy. Gross exports of goods and services constitute more than 80% of GDP. The oil and gas sector supplied about 29% of government revenue in 2014. As an oil and gas exporter, Malaysia has previously profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with sustained budget deficits, has forced Kuala Lumpur to begin to address fiscal shortfalls, through initial reductions in energy and sugar subsidies and the announcement of the 2015 implementation of a 6% goods and services tax. Falling global oil prices in the second half of 2014 have strained government finances, shrunk Malaysia’s current account surplus and put downward pressure on the ringgit. The government is trying to lessen its dependence on state oil producer Petronas.

 

Bank Negara Malaysia (the central bank) maintains healthy foreign exchange reserves; a well-developed regulatory regime has limited Malaysia's exposure to riskier financial instruments and the global financial crisis. In order to attract increased investment, NAJIB raised possible revisions to the special economic and social preferences accorded to ethnic Malays under the New Economic Policy of 1970, but retreated in 2013 after he encountered significant opposition from Malay nationalists and other vested interests. In September 2013 NAJIB launched the new Bumiputra Economic Empowerment Program (BEEP), policies that favor and advance the economic condition of ethnic Malays.

 

Malaysia is a member of the 12-nation Trans-Pacific Partnership free trade agreement negotiations and, with the nine other ASEAN members, will form the ASEAN Economic Community in 2015.

 

Source : CIA

 

 

 

EXECUTIVE SUMMARY

 

REGISTRATION NO.

:

1001600-H

COMPANY NAME

:

KELPAC MEDICAL SDN. BHD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

14/05/2012

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED (LIMITED BY SHARE)

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

3-02, JALAN SRI PERKASA 2/18, TAMAN TAMPOI UTAMA, 81200 JOHOR BAHRU, JOHOR, MALAYSIA.

BUSINESS ADDRESS

:

1&3 JALAN LAMAN SETIA 7/3, SETIA BUSINESS PARK, GELANG PATAH, 81550 JOHOR BHARU, JOHOR, MALAYSIA.

TEL.NO.

:

07-5099560

FAX.NO.

:

07-5950560

CONTACT PERSON

:

THOMAS YIP FOOK MENG (YE FUMING) ( DIRECTOR )

INDUSTRY CODE

:

86201

PRINCIPAL ACTIVITY

:

MANUFACTURING OF TUBING MEDICAL

AUTHORISED CAPITAL

:

MYR 500,000.00 DIVIDED INTO 
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.

ISSUED AND PAID UP CAPITAL

:

MYR 250,000.00 DIVIDED INTO 
ORDINARY SHARES 250,000 CASH OF MYR 1.00 EACH.

SALES

:

N/A

NET WORTH

:

N/A

STAFF STRENGTH

:

45 [2015]

LITIGATION

:

CLEAR

DEFAULTER CHECK

:

CLEAR

FINANCIAL CONDITION

:

N/A

PAYMENT

:

N/A

MANAGEMENT CAPABILITY

:

WEAK

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

MARGINAL GROWTH

 

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, 1965 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) manufacturing of tubing medical.

 

The Subject is not listed on Bursa Malaysia (Malaysia Stock Exchange).

 

 

Share Capital History

Date

Authorised Shared Capital

Issue & Paid Up Capital

22/01/2014

MYR 500,000.00

MYR 250,000.00

15/02/2013

MYR 100,000.00

MYR 2.00

 

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

 

Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

ROESSLER RUEDIGER ANDREAS +

725-T, JALAN SUNGAI DUA, 11700 GELUGOR, PULAU PINANG, MALAYSIA.

C4KHVWCHG

249,999.00

100.00

SIA HOCK SENG

725-T, JALAN SUNGAI DUA, 11700 GELUGOR, PULAU PINANG, MALAYSIA.

E1845624K

1.00

0.00

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

------

250,000.00

100.00

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

=====

 

+ Also Director

 

DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

MR. THOMAS YIP FOOK MENG (YE FUMING)

Address

:

725-T, JALAN SINGAI DUA, 11700 GELUGOR, PULAU PINANG, MALAYSIA.

IC / PP No

:

E3280402L

Date of Appointment

:

30/09/2014

 

DIRECTOR 2

 

Name Of Subject

:

ROESSLER RUEDIGER ANDREAS

Address

:

725-T, JALAN SUNGAI DUA, 11700 GELUGOR, PULAU PINANG, MALAYSIA.

IC / PP No

:

C4KHVWCHG

Date of Appointment

:

14/05/2012




MANAGEMENT

 

 

1)

Name of Subject

:

THOMAS YIP FOOK MENG (YE FUMING)

Position

:

DIRECTOR

 

2)

Name of Subject

:

CHRISTINE

Position

:

STAFF

 

AUDITOR


No Auditor found in our databank 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

MR. LOH WEI TAK

IC / PP No

:

A2400229

New IC No

:

730226-01-5307

Address

:

217, JALAN KURNIA, KAMPUNG BARU, 81800 ULU TIRAM, JOHOR, MALAYSIA.

 

 

 

 

 

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. Our databank consists of 99% of the wound up companies in Malaysia.

No legal action was found in our databank.

No winding up petition was found in our databank.

DEFAULTER CHECK AGAINST SUBJECT


* We have checked through the Subject in our defaulters' database which comprised of debtors that have been blacklisted by our customers and debtors that have been placed or assigned to us for collection.

No blacklisted record & debt collection case was found in our defaulters' databank.

PAYMENT RECORD

 

 

SOURCES OF RAW MATERIALS:

Local

:

N/A

Overseas

:

N/A


The Subject refused to disclose its supplier. 

 

CLIENTELE

 

Local

:

N/A

Overseas

:

N/A

Credit Term

:

N/A

Payment Mode

:

N/A


The Subject refused to disclose its clientele. 

 

OPERATIONS

 

Products manufactured

:

TUBING MEDICAL

 

Total Number of Employees:

YEAR

2015

GROUP

N/A

COMPANY

45

 

Branch

:

NO

 

Other Information:


The Subject is principally engaged in the (as a / as an) manufacturing of tubing medical. 

The Subject is manufacturing quality custom medical extrusion for the medical devices.

The Subject also provided the services such as:

-State-of-the-art extrusion lines
-In-house tooling and equipment design
-In-house laboratory for on-site testing
-In-house customer service
-Off-line automated optical measurement
-Managed inventory program 

CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

07-5099560

Match

:

N/A

Address Provided by Client

:

1&3 JALAN LAMAN SETIA 7/3(SETIA BUSINESS PARK) GELANG PATAH 81550 MALAYSIA

Current Address

:

1&3 JALAN LAMAN SETIA 7/3, SETIA BUSINESS PARK, GELANG PATAH, 81550 JOHOR BHARU, JOHOR, MALAYSIA.

Match

:

NO

Latest Financial Accounts

:

NO


We have contacted the Subject's Accountant and its Company Secretary for the latest financial accounts. However they have rejected our request in view of the confidentiality of the documents.

 

Other Investigations


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

She refused to disclosed its banker.

The address provided is incomplete.

FINANCIAL ANALYSIS

 

No latest financial accounts are available at the Registry Office, thus we are not able to comment on the Subject's financial performance.

Overall financial condition of the Subject : N/A

 

 

MALAYSIA ECONOMIC / INDUSTRY OUTLOOK

 

Major Economic Indicators:

2011

2012

2013

2014*

2015**

Population ( Million)

28.7

29.3

29.8

30.3

30.5

Gross Domestic Products ( % )

5.1

5.6

5.3

6.0

6.0

Domestic Demand ( % )

8.2

9.4

5.6

6.4

6.2

Private Expenditure ( % )

8.2

8.0

8.6

7.9

6.9

Consumption ( % )

7.1

1.0

5.7

6.5

5.6

Investment ( % )

12.2

11.7

13.3

12.0

10.7

Public Expenditure ( % )

8.4

13.3

4.4

2.3

4.2

Consumption ( % )

16.1

11.3

(1.2)

2.1

3.8

Investment ( % )

(0.3)

15.9

4.2

2.6

4.7

Balance of Trade ( MYR Million )

116,058

106,300

71,298

52,314

-

Government Finance ( MYR Million )

(45,511)

(42,297)

(39,993)

(37,291)

-

Government Finance to GDP / Fiscal Deficit ( % )

(5.4)

(4.5)

(4.0)

(3.5)

(3.0)

Inflation ( % Change in Composite CPI)

3.1

1.6

2.5

3.2

4.0

Unemployment Rate

3.3

3.2

3.0

2.9

3.0

Net International Reserves ( MYR Billion )

415

427

-

417

-

Average Risk-Weighted Capital Adequacy Ratio ( % )

3.50

2.20

-

4.00

-

Average 3 Months of Non-performing Loans ( % )

14.80

14.70

-

-

-

Average Base Lending Rate ( % )

6.60

6.53

6.53

6.85

-

Business Loans Disbursed( % )

15.3

32.2

-

56.0

-

Foreign Investment ( MYR Million )

23,546.1

26,230.4

38,238.0

43,486.6

-

Consumer Loans ( % )

-

-

-

-

-

Registration of New Companies ( No. )

45,455

45,441

46,321

49,144

-

Registration of New Companies ( % )

3.0

(0.0)

1.9

6.1

-

Liquidation of Companies ( No. )

132,485

17,092

26,430

21,753

-

Liquidation of Companies ( % )

417.8

(87.1)

54.6

(17.7)

-

Registration of New Business ( No. )

284,598

324,761

329,895

332,723

-

Registration of New Business ( % )

5.0

14.0

2.0

1.0

-

Business Dissolved ( No. )

20,121

20,380

18,161

21,436

-

Business Dissolved ( % )

1.9

1.3

(10.9)

18.0

-

Sales of New Passenger Cars (' 000 Unit )

535.1

552.2

576.7

598.4

610.3

Cellular Phone Subscribers ( Million )

35.3

38.5

43.0

43.8

-

Tourist Arrival ( Million Persons )

24.7

25.0

25.7

28.0

-

Hotel Occupancy Rate ( % )

60.6

62.4

62.6

63.2

-

Credit Cards Spending ( % )

15.6

12.6

-

13.5

-

Bad Cheque Offenders (No.)

32,627

26,982

28,876

-

-

Individual Bankruptcy ( No.)

19,167

19,575

21,984

-

-

Individual Bankruptcy ( % )

5.8

2.1

12.3

-

-

 

INDUSTRIES ( % of Growth ):

2011

2012

2013

2014*

2015**

Agriculture

5.8

1.0

2.1

3.8

3.1

Palm Oil

10.8

(0.3)

2.6

6.7

-

Rubber

6.1

(7.9)

(10.1)

(10.4)

-

Forestry & Logging

(7.6)

(4.5)

(7.8)

(4.2)

-

Fishing

2.1

4.3

1.6

2.7

-

Other Agriculture

7.1

6.4

8.2

6.2

-

Industry Non-Performing Loans ( MYR Million )

634.1

-

-

-

-

% of Industry Non-Performing Loans

3.2

-

-

-

-

Mining

(5.4)

1.4

0.9

(0.8)

2.8

Oil & Gas

(1.7)

-

-

3.0

-

Other Mining

-

-

-

46.6

-

Industry Non-performing Loans ( MYR Million )

46.5

-

-

-

-

% of Industry Non-performing Loans

0.1

-

-

-

-

Manufacturing #

4.7

4.8

3.4

6.4

5.5

Exported-oriented Industries

4.1

6.5

3.3

5.6

-

Electrical & Electronics

(4.0)

12.7

6.9

13.3

-

Rubber Products

20.7

3.0

11.7

(0.3)

-

Wood Products

(5.1)

8.7

(2.7)

5.1

-

Textiles & Apparel

13.2

(7.1)

(2.6)

11.5

-

Domestic-oriented Industries

10.7

1.7

6.8

9.4

-

Food, Beverages & Tobacco

4.80

2.70

3.60

6.13

6.13

Chemical & Chemical Products

10.0

10.8

5.6

1.4

-

Plastic Products

3.8

-

-

2.7

-

Iron & Steel

2.2

(6.6)

5.0

0.1

-

Fabricated Metal Products

21.8

13.8

9.9

2.9

-

Non-metallic Mineral

12.1

2.9

(2.0)

5.4

-

Transport Equipment

12.0

3.4

13.8

22.9

-

Paper & Paper Products

9.5

3.1

1.8

4.7

-

Crude Oil Refineries

9.3

-

-

13.0

-

Industry Non-Performing Loans ( MYR Million )

6,537.2

-

-

-

-

% of Industry Non-Performing Loans

25.7

-

-

-

-

Construction

4.7

18.6

10.9

12.7

10.7

Industry Non-Performing Loans ( MYR Million )

3,856.9

-

-

-

-

% of Industry Non-Performing Loans

10.2

-

-

-

-

Services

7.1

6.4

5.9

5.9

5.6

Electric, Gas & Water

3.5

4.4

4.2

3.6

3.9

Transport, Storage & Communication

6.50

7.10

7.30

7.50

7.15

Wholesale, Retail, Hotel & Restaurant

5.2

4.7

5.9

6.9

6.5

Finance, Insurance & Real Estate

6.90

9.70

3.70

4.65

4.25

Government Services

12.4

9.4

8.3

6.1

5.6

Other Services

5.1

3.9

5.1

4.8

4.5

Industry Non-Performing Loans ( MYR Million )

6,825.2

-

-

-

-

% of Industry Non-Performing Loans

23.4

-

-

-

-

* Estimate / Preliminary

** Forecast

# Based On Manufacturing Production Index 



INDUSTRY ANALYSIS

 

MSIC CODE

86201 : General medical services

INDUSTRY :

ECONOMY

In 2014, the economy is projected to grow 5.5% - 6% (2013: 4.7%), which is higher than the initial forecast of 4.5% - 5.5% in early 2014. Growth was supported by resilient domestic demand and reinforced by higher exports. The faster pace of recovery, particularly in the US, UK and selected euro area economies as well as moderate growth in the emerging economies provided strong support to the Malaysian export oriented industries and trade-related services. Consequently, gross exports rebounded strongly by 10.7% during the first seven months of 2014 from a contraction of 2.8% in the corresponding period in 2013. Furthermore, the economy growth of Malaysia in 2015 is expected to be 5%-6% driven by improving external demand, resilient domestic economic activity, and government infra- structure projects. The spillover and multiplier effect from government spending is crucial for economic growth in the country. The government also aims to boost the economy by increasing job opportunities and drive supporting industries.

Meanwhile, the Malaysian economy has benefited from several initiatives and reforms taken over the years to enhance its resilience and competitiveness. The nation's strengths include: strong macroeconomic fundamentals such as a diversified economy, low unemployment, strong international reserves, growing role of the private sector, and a healthy financial system to support economic activity.

On the demand side, growth will be reinforced by resilient consumer spending, strong private investment activity and improving global demand. The domestic demand is expected to expand in 2015 at a moderate pace, underpinned by higher investment and sustained consumption spending. Private investment is expected to remain strong supported by increasing domestic activity, a favorable external sector, and ongoing projects under the Economic Transformation Programme (ETP). Private consumption is, however, expected to moderate below its long-term average, but will continue to support growth. Household spending is expected to moderate amid higher inflation following the implementation of GST. Nonetheless, the impact of higher inflation on consumption is expected to be temporary and will eventually taper off after a few months of the GST implementation.

On the supply side, all economic sectors are expected to record positive in 2015, with the services and manufacturing sectors remaining the major contribution to growth. The service sector is projected to grow by 5.6% with all subsectors recording expansion such as wholesale trade, transport and storage, retail trade as well as accommodation and restaurants. The manufacturing sector is expected to grow 5.5% boosted by strong domestic and export-oriented industries. Meanwhile, the export-oriented industries, particularly the E&E subsector will benefit from the improvement in external conditions in line with improving global growth. The agriculture sector is expected to grow 3.1% by recording higher commodity production and increase output of food commodities, while the construction sector is expected to grow 10.7% driven by robust activity in the civil engineering projects in the O&G sector, residential and non-residential buildings. The mining sector is expected to grow 2.8% backed by the increase in production of natural gas and crude oil following capacity enhancement and new production facilities.

Moreover, in 2014, boosted by strong external demand for manufactured products and stable commodity prices, exports are expected to grow 6%. Import growth will remain resilient at 4.3% supported by continued expansion in manufacturing, investment and consumption activities. Meanwhile, higher remittances by foreign workers in Malaysia will see a marginally higher deficit in the secondary income account due to the full implementation of the Minimum Wage Policy effective from January 2014. Furthermore, Malaysia's external position is expected to remain strong in 2015 with improve prospects for external environment, upturn in global semiconductor sales, as well as resilient domestic and regional demand. Gross exports are expected to increase 3.2% spurred by higher demand for manufactured products, in particular E&E, and steady demand for commodities. Gross import are, however, projected to grow at a faster pace of 5.3% boosted by higher demand for intermediate inputs and broad-based capital spending, particularly in the manufacturing and services sectors as well as ongoing implementation of infrastructure projects. Higher investment activity across major sectors by the Non-Financial Public Enterprises (NFPEs) is also expected to contribute to import growth.

In 2015, inflation is expected to increase 4-5%, largely due to the implementation of Goods and Services Tax (GST), spillover effect of fuel subsidy reduction, and electricity tariff hike in January 2014. This inflation expectation further heightens the possibility of more Overnight Policy Rate (OPR) hikes, following the 25 basis points hike in July 2014. Given the subdued external cost pressure, domestic cost remains the major factor that drives inflation in 2015. The implementation of the GST will have a transitory impact on the cost of goods and services. However, the strong capacity expansion over the past years will help to mitigate the cost pressures, while a more cautious stance of consumers would also contribute to moderating demand and hence prevent inflation from becoming more entrenched.

On the other hand, Gross National Income (GNI) in 2015 is expected to expand further by 9.4% (2014: 10.2%) following continued growth in the domestic economy. With total consumption spending in nominal terms expected to increase 9.2%, the Gross National Savings (GNS) is projected to expand 9.8% (2014: 14.5%). Consequently, the share of GNS and GNI is expected to increase to 32.5% (2014: 32.4%). However, in line with the better economic growth, national income as measured by the nominal GNI, is estimated to expand 10.2% to RM1,049.5 billion in 2014, surpassing for the first time, the RM1-trillion mark. Other than that, nominal GNI per capita is expected to increase 8.1% to RM37,486 in 2015 (2014: 8.9%, RM34,682). In terms of Purchasing Power Parity (PPP), per capital income is expected to increase 2.4% to USD 23,512 in 2015 (2014: 2.2%, USD 22,958).

Under budget 2015, the government targets to bring down the budget deficit to -3% of GDP by 2015. The initiations of subsidy rationalization and Goods and Services Tax (GST) in April 2015 are crucial steps towards fiscal consolidation.

OVERALL INDUSTRY OUTLOOK : Marginal Growth

 

CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2012, the Subject is a Private Limited company, focusing on manufacturing of tubing medical. The Subject has been in business for less than 5 years and it has slowly been building up contact with its clients while competing in the industry. However, it has yet to enjoy a stable market shares as it need to compete many well established players in the same field. Being a small company with an issued and a paid up capital of MYR 250,000 contributed from individual shareholders, the Subject does not have strong shareholders' backing. Without a strong backing, the Subject may face difficulties in its attempt to further expand its business in the future. 

The Subject is operating on a medium scale and it has approximately 45 employees in its business operations. 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. 

No financial accounts are available for analysis. As such, we are not able to comment on the Subject's current financial standing. 

The industry has reached its maturity stage and only enjoying a marginal growth. The steady growth of the country's economy will further enhance the industry activities. Thus, the Subject's future performance is very much depend on its marketing strategies in order to retain its position 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.

 

 

FINANCIAL ACCOUNT


No latest financial accounts are available at the Registry Office. 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.66.17

UK Pound

1

Rs.100.65

Euro

1

Rs.70.97

 

 

INFORMATION DETAILS

 

Analysis Done by :

KIN

 

 

Report Prepared by :

TPT

 

               

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.