MIRA INFORM REPORT

 

 

Report No. :

351412

Report Date :

26.11.2015

 

IDENTIFICATION DETAILS

 

Name :

DI-SORIC PTE. LTD.

 

 

Registered Office :

8, UBI Road 2, 07-13, Zervex, 408538

 

 

Country :

Singapore

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

05.08.2011

 

 

Com. Reg. No.:

201118700-W

 

 

Legal Form :

Private Limited

 

 

Line of Business :

Trading of sensors and lightings.

 

 

No. of Employee :

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 – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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. Unemployment is very low. The economy depends heavily on exports, particularly of consumer electronics, information technology products, medical and optical devices, pharmaceuticals, and on its vibrant transportation, business, and financial services sectors. The economy contracted 0.6% in 2009 as a result of the global financial crisis, but has continued to grow since 2010 on the strength of renewed exports. Growth in 2014 was slower at 2.9%, largely a result of soft demand for exports amid a sluggish global economy and weak growth in Singapore’s manufacturing sector. The government is attempting to restructure Singapore’s economy by weaning its dependence on foreign labor, addressing weak productivity, and increasing Singaporean wages. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to strengthen its position as Southeast Asia's leading financial and high-tech hub. Singapore is a member of the 12-nation Trans-Pacific Partnership free trade negotiations, the Regional Comprehensive Economic Partnership negotiations with the nine other ASEAN members plus Australia, China, India, Japan, South Korea and New Zealand, and in 2015, Singapore will form, with the other ASEAN members, the ASEAN Economic Community.

 

Source : CIA


 

EXECUTIVE SUMMARY

 

 

REGISTRATION NO.

:

201118700-W

COMPANY NAME

:

DI-SORIC PTE. LTD.

FORMER NAME

:

N/A

INCORPORATION DATE

:

05/08/2011

COMPANY STATUS

:

EXIST

LEGAL FORM

:

PRIVATE LIMITED

LISTED STATUS

:

NO

REGISTERED ADDRESS

:

8, UBI ROAD 2, 07-13, ZERVEX, 408538, SINGAPORE.

BUSINESS ADDRESS

:

8, UBI ROAD 2, 07-13, ZERVEX, 408538, SINGAPORE.

TEL.NO.

:

65-66343843

FAX.NO.

:

65-66343844

WEB SITE

:

WWW.DI-SORIC.COM

CONTACT PERSON

:

LEE SOON WAH ( MANAGING DIRECTOR )

PRINCIPAL ACTIVITY

:

TRADING OF SENSORS AND LIGHTINGS

ISSUED AND PAID UP CAPITAL

:

100,000.00 ORDINARY SHARE, OF A VALUE OF SGD 100,000.00

SALES

:

EUR 208,384 [2014]

NET WORTH

:

EUR (48,872) [2014]

STAFF STRENGTH

:

N/A

LITIGATION

:

CLEAR

FINANCIAL CONDITION

:

POOR

PAYMENT

:

SLOW

MANAGEMENT CAPABILITY

:

AVERAGE

COMMERCIAL RISK

:

N/A

CURRENCY EXPOSURE

:

N/A

GENERAL REPUTATION

:

SATISFACTORY

INDUSTRY OUTLOOK

:

AVERAGE 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 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 sensors and lightings.

 

Share Capital History

Date

Issue & Paid Up Capital

25/11/2015

SGD 100,000.00

 

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


Current Shareholder(s) :

Name

Address

IC/PP/Loc No

Shareholding

(%)

DI-SORIC SENSORS GMBH

STEINBEISSTRASSE 6, URBACH

T11UF3153

100,000.00

100.00

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

------

100,000.00

100.00

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

=====

+ Also Director



DIRECTORS

 

DIRECTOR 1

 

Name Of Subject

:

PETER MATHIAS EISEMANN

Address

:

SCHORNDORF, THEODOR-KORNERSTRABE 8/1, GERMANY.

IC / PP No

:

C8HNPZ7GK

Nationality

:

GERMAN

Date of Appointment

:

05/08/2011

 

DIRECTOR 2

 

Name Of Subject

:

STANLEY LEE SOON WAH

Address

:

560, HOUGANG STREET 51, 14-402, 530560, SINGAPORE.

IC / PP No

:

S1691368E

Nationality

:

SINGAPOREAN

Date of Appointment

:

10/11/2014


MANAGEMENT

 

 

 

1)

Name of Subject

:

LEE SOON WAH

Position

:

MANAGING DIRECTOR

 

 

 

AUDITOR

 

Auditor

:

R CHAN & ASSOCIATES PAC

Auditor' Address

:

N/A

 

 

 

COMPANY SECRETARIES

 

1)

Company Secretary

:

SONG KWONG YUEN

IC / PP No

:

S0017138G

Address

:

6, HOUGANG STREET 92, 05-05, REGENTVILLE, 538685, 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

[

]

Average 61-90 Days

[

X

]

Fair 91-120 Days

[

]

Poor >120 Days

[

]

 

 

CLIENTELE

 

Local

:

N/A

Overseas

:

N/A


The Subject refused to disclose its clientele.

 

 

OPERATIONS

 

Goods Traded

:

SENSORS AND LIGHTINGS

 

Branch

:

NO

Other Information:


The Subject is principally engaged in the (as a / as an) trading of sensors and lightings.

The Subject is specialized in the sensors for industrial automation.


CURRENT INVESTIGATION

 

Latest fresh investigations carried out on the Subject indicated that :

Telephone Number Provided By Client

:

N/A

Current Telephone Number

:

65-66343843

Match

:

N/A

Address Provided by Client

:

8UBI ROAD 2, #07-13 ZEREVEX 408538

Current Address

:

8, UBI ROAD 2, 07-13, ZERVEX, 408538, SINGAPORE.

Match

:

NO

 

Other Investigations


On 24th November 2015 we contacted one of the staff from the Subject and he provided some information.

The address provided is incomplete.

The Subject refused to disclose its number of employees and bankers.


FINANCIAL ANALYSIS

 

 

Profitability

Turnover

:

Decreased

[

0.12%

]

Profit/(Loss) Before Tax

:

Increased

[

(19,317.52%)

]

Return on Shareholder Funds

:

Unfavourable

[

147.40%

]

Return on Net Assets

:

Unfavourable

[

(142.87%)

]

The lower turnover could be due to the unfavourable market conditions.Higher losses before tax during the year could be due to the higher operating costs incurred. Although the Subject's returns showed positive figures it is not reflective of the true situation. The Subject incurred losses during the year and its shareholders' funds have turned red. The positive returns on shareholders' funds is the result of losses divided by negative shareholders' funds. The Subject's management was inefficient in utilising the assets to generate returns.

Working Capital Control

Stock Ratio

:

Favourable

[

46 Days

]

Debtor Ratio

:

Favourable

[

15 Days

]

Creditors Ratio

:

Favourable

[

0 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

:

Unfavourable

[

0.62 Times

]

Current Ratio

:

Unfavourable

[

0.82 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

:

Unfavourable

[

(37.40 Times)

]

Gearing Ratio

:

Unfavourable

[

(0.14 Times)

]

The Subject incurred losses in the year. It did not generate sufficient income to service its interest.  If the situation does not improve, the Subject may be vulnerable to default in servicing the interest. The Subject's gearing was negative during the year as its shareholders' funds was in the red. This means the Subject is running its business using borrowed money. We consider the Subject as facing high financial risks.

Overall Assessment :

The Subject's losses could be attributed to the lower turnover which in turn could be the result of unfavourable market conditions. 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. The Subject's interest cover was negative, indicating that it did not generate sufficient income to service its interest. If its result does not show impressive improvements or succeed obtaining short term financing or capital injection, it may not be able to service its interest and repay the loans. The Subject has high financial risks. If its shareholders do not inject more capital into the company or if its business performance does not improve, its going concern may be in question.

Overall financial condition of the Subject : POOR

 

 

 

SINGAPORE ECONOMIC / INDUSTRY OUTLOOK

 

 

Major Economic Indicators :

2010

2011

2012

2013

2014

 

Population (Million)

5.08

5.18

5.31

5.40

5.47

Gross Domestic Products ( % )

14.5

4.9

1.3

3.7

(3.5)

Consumer Price Index

2.8

5.2

4.6

2.4

2.4

Total Imports (Million)

423,221.8

459,655.1

474,554.0

466,762.0

463,779.1

Total Exports (Million)

478,840.7

514,741.2

510,329.0

513,391.0

518,922.7

 

Unemployment Rate (%)

2.2

2.1

2.0

1.9

1.9

Tourist Arrival (Million)

11.64

13.17

14.49

15.46

15.01

Hotel Occupancy Rate (%)

85.6

86.5

86.4

86.3

85.5

Cellular Phone Subscriber (Million)

1.43

1.50

1.52

1.97

1.98

 

Registration of New Companies (No.)

29,798

32,317

31,892

37,288

41,589

Registration of New Companies (%)

12.8

8.5

(1.3)

9.8

11.5

Liquidation of Companies (No.)

15,126

19,005

17,218

17,369

18,767

Liquidation of Companies (%)

(32.5)

25.6

9.4

(5.3)

8.0

 

Registration of New Businesses (No.)

23,978

23,494

24,788

22,893

35,773

Registration of New Businesses (%)

(10.78)

2.02

5.51

1.70

56.30

Liquidation of Businesses (No.)

24,211

23,005

22,489

22,598

22,098

Liquidation of Businesses (%)

2.8

(5)

(2.2)

0.5

(2.2)

 

Bankruptcy Orders (No.)

1,537

1,527

1,748

1,992

1,757

Bankruptcy Orders (%)

(25.3)

(0.7)

14.5

14.0

(11.8)

Bankruptcy Discharges (No.)

2,252

1,391

1,881

2,584

3,546

Bankruptcy Discharges (%)

(26.3)

(38.2)

35.2

37.4

37.2

 

INDUSTRIES ( % of Growth ) :

Agriculture

Production of Principal Crops

(0.48)

4.25

3.64

-

Fish Supply & Wholesale

(10.5)

12.10

(0.5)

-

2.80

 

Manufacturing *

92.8

100.0

100.3

102.0

Food, Beverages & Tobacco

96.4

100.0

103.5

103.5

105.0

Textiles

122.1

100.0

104.0

87.1

74.9

Wearing Apparel

123.3

100.0

92.1

77.8

49.5

Leather Products & Footwear

81.8

100.0

98.6

109.8

95.9

Wood & Wood Products

104.0

100.0

95.5

107.4

112.0

Paper & Paper Products

106.1

100.0

97.4

103.2

103.4

Printing & Media

103.5

100.0

93.0

86.1

80.3

Crude Oil Refineries

95.6

100.0

99.4

93.5

85.6

Chemical & Chemical Products

97.6

100.0

100.5

104.1

114.0

Pharmaceutical Products

75.3

100.0

109.7

107.2

115.7

Rubber & Plastic Products

112.3

100.0

96.5

92.9

92.8

Non-metallic Mineral

92.5

100.0

98.2

97.6

82.2

Basic Metals

102.2

100.0

90.6

76.5

98.3

Fabricated Metal Products

103.6

100.0

104.3

105.1

105.1

Machinery & Equipment

78.5

100.0

112.9

114.5

124.0

Electrical Machinery

124.1

100.0

99.3

108.5

121.3

Electronic Components

113.6

100.0

90.6

94.3

95.0

Transport Equipment

94.0

100.0

106.3

107.5

103.2

 

Construction

14.20

20.50

28.70

-

22.00

Real Estate

21.3

25.4

31.9

-

145.1

 

Services

Electricity, Gas & Water

4.00

7.00

6.30

-

Transport, Storage & Communication

12.80

7.40

5.30

-

14.20

Finance & Insurance

(0.4)

8.90

0.50

-

6.00

Government Services

9.70

6.90

6.00

-

Education Services

(0.9)

(1.4)

0.30

-

5.98

 

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



INDUSTRY ANALYSIS

 

INDUSTRY :

TRADING

The wholesale and retail trade sectors have expanded by 2.0% in the third quarter of 2014, extending the 1.8 per cent growth in the previous quarter. In 2013, the wholesale and retail sector expanded by 5.0%, after declining by 1.4% the year before. Growth of the sector was driven by the wholesale trade segment.

The domestic wholesale trade index has increased by 3.2% in the fourth quarter of 2013, moderating from the 6.6% growth in the previous quarter. The slower growth was due to a decline in the sales of furniture and household equipment (-12%) and petroleum and petroleum products (-0.6%). For the full year, the domestic wholesale trade index grew by 5.2% reversing the 2.2% decline in 2012. On the other hand, the foreign wholesale trade index has increased by a slower pace of 5.6% in the fourth quarter, compared to the 7.7% expansion in the preceding quarter. The slowdown was due to a fall in the sales of telecommunication equipment and computer (-3.8%) and petroleum and petroleum products (-2.5%). For the full year, the growth of the foreign wholesale trade index moderated slightly to 8.6% from 9.1% in the previous year.

In the fourth quarter of 2013, retail sales volume fell by 6.2%, extending the 5.6% decline in the previous quarter. Excluding motor vehicles, retail sales volume increased by 0.4%, a slower pace of expansion as compared to the 1.6% gain in the preceding quarter. The sales volume of motor vehicles fell by 33% in the fourth quarter of 2013, extending the 32% decline in the previous quarter. Meanwhile, the sales of several discretionary items also fell in the fourth quarter of 2013. For instance, the sales of telecommunications apparatus and computers fell by 12%, while the sales of furniture and household equipment declined by 5.4%.

For the full year, retail sales volume contracted by 4.3%, a reversal from the 1.3% expansion in 2012. Excluding motor vehicle sales, the retail sales volume grew by 1.1% in 2013, slower than the 1.7% increase in 2012. Watches and jewellery recorded the largest increase (11%) in sales in 2013, followed by optical goods and book (3%) and medical goods and toiletries (3%). By contrast, the sales of telecommunications apparatus and computer (-7.3%), furniture and household equipment (-4.2%) and petrol service stations (-1.4) declined in 2013.

OVERALL INDUSTRY OUTLOOK : AVERAGE GROWTH



CREDIT RISK EVALUATION & RECOMMENDATION

 


Incorporated in 2011, the Subject is a Private Limited company, focusing on trading of sensors and lightings. 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. The Subject have a strong support from its shareholder. However, the Subject does not have a strong capital position. Without a strong capital, the Subject may face difficulties to expand its business compared to other large corporation.

Overall, we regard that the Subject's management capability is average. This indicates that the Subject has greater potential to improve its business performance and raising income for the Subject.

Due to the challenging market conditions, the Subject's business performance seems to be deteriorating and losses incurred. 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. The Subject has generated an unfavourable gearing ratio indicated that the Subject is in high financial risk. The Subject's unfavourable financial performance over the years has wiped out its shareholders' funds to a deficit of EUR -48,872. 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.

The Subject's payment habit is average. With its adequate working capital, the Subject should be able to pay its short term debts.

The industry shows an upward trend and this trend is very likely to sustain in the near terms.

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.

 

Financial Year End

2014-12-31

2013-12-31

Months

12

12

Consolidated Account

Company

Company

Audited Account

YES

YES

Unqualified Auditor's Report (Clean Opinion)

YES

YES

Financial Type

FULL

FULL

Currency

EUR

EUR

TURNOVER

208,384

208,624

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

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

Total Turnover

208,384

208,624

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

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

PROFIT/(LOSS) FROM OPERATIONS

(72,039)

(371)

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

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

PROFIT/(LOSS) BEFORE TAXATION

(72,039)

(371)

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

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

PROFIT/(LOSS) AFTER TAXATION

(72,039)

(371)

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

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

RETAINED PROFIT/(LOSS) BROUGHT FORWARD

As previously reported

(33,663)

(33,292)

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

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

As restated

(33,663)

(33,292)

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

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

PROFIT AVAILABLE FOR APPROPRIATIONS

(105,702)

(33,663)

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

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

RETAINED PROFIT/(LOSS) CARRIED FORWARD

(105,702)

(33,663)

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

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

INTEREST EXPENSE (as per notes to P&L)

Hire purchase

1,223

1,253

Term loan / Borrowing

(2)

405

Others

655

742

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

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

1,876

2,400

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

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

DEPRECIATION (as per notes to P&L)

6,444

2,835

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

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

6,444

2,835

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

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

 

 

 

BALANCE SHEET

 

 

DI-SORIC PTE. LTD.

 

ASSETS EMPLOYED:

FIXED ASSETS

73,778

45,847

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

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

TOTAL LONG TERM ASSETS

73,778

45,847

Stocks

26,452

36,283

Trade debtors

8,366

9,080

Other debtors, deposits & prepayments

6,589

3,157

Cash & bank balances

69,923

17,573

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

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

TOTAL CURRENT ASSETS

111,330

66,093

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

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

TOTAL ASSET

185,108

111,940

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

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

Other creditors & accruals

47,820

12,427

Amounts owing to related companies

60,937

16,776

Amounts owing to director

-

33

Lease payables

2,243

6,526

Other liabilities

25,000

25,405

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

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

TOTAL CURRENT LIABILITIES

136,000

61,167

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

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

NET CURRENT ASSETS/(LIABILITIES)

(24,670)

4,926

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

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

TOTAL NET ASSETS

49,108

50,773

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

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

SHARE CAPITAL

Ordinary share capital

56,830

56,830

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

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

TOTAL SHARE CAPITAL

56,830

56,830

Retained profit/(loss) carried forward

(105,702)

(33,663)

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

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

TOTAL RESERVES

(105,702)

(33,663)

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

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

SHAREHOLDERS' FUNDS/EQUITY

(48,872)

23,167

Lease obligations

6,802

27,606

Others

91,178

-

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

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

TOTAL LONG TERM LIABILITIES

97,980

27,606

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

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

49,108

50,773

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

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

 

 

 

FINANCIAL RATIO

 

 

 

TYPES OF FUNDS

Cash

69,923

17,573

Net Liquid Funds

69,923

17,573

Net Liquid Assets

(51,122)

(31,357)

Net Current Assets/(Liabilities)

(24,670)

4,926

Net Tangible Assets

49,108

50,773

Net Monetary Assets

(149,102)

(58,963)

PROFIT & LOSS ITEMS

Earnings Before Interest & Tax (EBIT)

0

0

Earnings Before Interest, Taxes, Depreciation And Amortization (EBITDA)

(63,719)

4,864

BALANCE SHEET ITEMS

Total Borrowings

6,802

27,606

Total Liabilities

233,980

88,773

Total Assets

185,108

111,940

Net Assets

49,108

50,773

Net Assets Backing

(48,872)

23,167

Shareholders' Funds

(48,872)

23,167

Total Share Capital

56,830

56,830

Total Reserves

(105,702)

(33,663)

LIQUIDITY (Times)

Cash Ratio

0.51

0.29

Liquid Ratio

0.62

0.49

Current Ratio

0.82

1.08

WORKING CAPITAL CONTROL (Days)

Stock Ratio

46

63

Debtors Ratio

15

16

Creditors Ratio

0

0

SOLVENCY RATIOS (Times)

Gearing Ratio

(0.14)

1.19

Liabilities Ratio

(4.79)

3.83

Times Interest Earned Ratio

(37.40)

0.85

Assets Backing Ratio

0.86

0.89

PERFORMANCE RATIO (%)

Operating Profit Margin

(34.57)

(0.18)

Net Profit Margin

(34.57)

(0.18)

Return On Net Assets

(142.87)

4.00

Return On Capital Employed

(142.87)

4.00

Return On Shareholders' Funds/Equity

147.40

(1.60)

Dividend Pay Out Ratio (Times)

0

0

NOTES TO ACCOUNTS

Contingent Liabilities

0

0

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.38

UK Pound

1

Rs.100.45

Euro

1

Rs.70.55

 

 

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.