MIRA INFORM REPORT

 

 

Report No. :

350849

Report Date :

30.11.2015

 

IDENTIFICATION DETAILS

 

Name :

WMS SUPERMERCADOS DO BRASIL LTDA

 

 

Registered Office :

Avenida Sertório, 6600 Sobreloja – Sarandi, 91110-580 - Porto Alegre/RS

 

 

Country :

Brazil

 

 

Date of Incorporation :

15.12.1989

 

 

Legal Form :

Limited Liability Company

 

 

Line of Business :

Retail Sale of Goods in General

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Status :

Excellent 

 

 

Payment Behaviour :

Regular

 

 

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

 

WMS SUPERMERCADOS DO BRASIL LTDA

 

 

ADDRESSES

 

MAIN ADDRESS:

AVENIDA SERTÓRIO,6600 SOBRELOJA - SARANDI

ZIP CODE/CITY:

91110-580 - PORTO ALEGRE/RS

 

 

PHONE:

51 3083-4307

E-MAIL:

carlos@walmart.com.br

WEB SITE:

www.walmart.com.br

 

BRANCHES:

 

 

 

ADDRESS:

RODOVIA BR 116 - KM,12 - INDUSTRIAL

ZIP CODE/CITY:

93270-000 ESTEIO/RS

PHONE:

51 3473-5000

 

 

ADDRESS:

AVENIDA ITABERABA,1863 - FREGUESIA DO Ó

ZIP CODE/CITY:

02734-000 SÃO PAULO/SP

PHONE:

11 3877-6800

 

 

ADDRESS:

AVENIDA CENTENÁRIO - S/Nº. - LOJA,34 - PRÓSPERA

ZIP CODE/CITY:

88813-095 CRICIÚMA/SC

PHONE:

48 3431-8100

 

 

ADDRESS:

RUA SÃO BENTO,2469 - VILA HAUTER

ZIP CODE/CITY:

81630-230 CURITIBA/PR

PHONE:

41 3376-4122

CNPJ:

93.209.765/0142-58

 

 

ADDRESS:

RODOVIA BR 116 - Nº.,665 - SALA G - VILA DOS TRÊS PONTOS

ZIP CODE/CITY:

93250-000 ESTEIO/RS

CNPJ:

93.209.765/0275-89

 

 

ADDRESS:

RUA SERGIO DIETRICH,913 - SARANDI

ZIP CODE/CITY:

91060-410 PORTO ALEGRE/RS

CNPJ:

93.209.765/0006-21

 

 

ADDRESS:

AV. VENANCIO AIRES,1211 - FARROUPILHAS

ZIP CODE/CITY:

90040-192  PORTO ALEGRE/RS

PHONE:

51 3901-5344

CNPJ:

932097650

 

THE COMPANY HAS OVER 250 BRANCHES LOCATED IN: PORTO ALEGRE/RS, OSASCO/SP, BARUERI/SP, ESTEIO/RS, SÃO JOSÉ DOS PINHAIS/PR, CURITIBA/PR, CANOAS/RS, MONTENEGRO/RS, CACHOEIRINHA/RS, CRICIUMA/SC, FLORIANOPOLIS/SC, SANTA MARIA/SC, SANTOS/SP, GUARULHOS/SP, CANOAS/RS, GRAVATAÍ/RS, PELOTAS/RS, CAMAQUI/RS, CAPÃO DA CANOA/RS, NOVO HAMBURGO/RS, RIO GRANDE/RS, SÃO LEOPOLDO/RS, TORRES/RS, TRAMANDAI/RS, MARINGÁ/PR, PONTA GROSSA/PR, CAXIAS DO SUL/RS, SAPUCAIA DO SUL/RS, VIAMÃO/RS, ALVORADA/RS, ESTÂNCIA VELHA/RS, GUAÍBA/RS, LAJEADO/RS, SÃO PAULO/SP, LIVRAMENTO/RS AND SÃO BORJA/RS.

 

 

LEGAL DATA

 

MAIN ACTIVITIES:

 

RETAIL SALE OF GOODS IN GENERAL.

 

LEGAL FORM:

LIMITED LIABILITY COMPANY

 

 

INCORPORATION DATE:

15/12/1989

REGISTER DATE:

15/12/1989

BALANCE SHEET FILING DATE:

31/12

TAX CONTRIBUTOR NUMBER(CNPJ):

93.209.765/0001-17

STATE REGISTER:

096/2105503

 

 

SHARE CAPITAL:

R$ 3.372.934.797,99

 

BOARD OF DIRECTORS:

 

 

 

DANIEL GROSS GARCIA

MANAGER

GUILHERME MACEDO DE SOUZA LOUREIRO

MANAGER

MARCOS IGNACIO AMBROSANO

MANAGER

FLAVIO FIGUEIRA COTINI

MANAGER

ALEXANDRE MARQUES ESPER

MANAGER

CLEBER EUGENIO VOELZKE

MANAGER

LIVIA CRISTIANE DE AZEVEDO MOTTA E SILVA

MANAGER

 

 

AUTHORIZED USE OF SIGNATURE

 

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

 

SHAREHOLDERS / PARTNERS:

 

 

 

WMT BRASIL S.A.R.L.

R$ 3.372.934.787,99

BRASIL SEGUNDO LLC

R$ 10,00

 

AFFILIATES / SUBSIDIARIES:

 

 

 

FCNI PARTICIPACOES LTDA

 

BOMPREÇO BAHIA SUPERMERCADOS LTDA

 

WMB DISTRIBUIDORA LTDA

 

BOMPREÇO SUPERMERCADOS DO NORDESTE LTDA

 

DG2 CONSTRUCOES E INCORPORACOES LTDA

 

WAL MART BRASIL LTDA

 

FCP PARTICIPACOES LTDA

 

FRUX PARTICIPACOES LTDA

 

 

 

COMPANY'S BACKGROUND

 

THE SUBJECT WAS ESTABLISHED ON DECEMBER 15, 1989 AS SONAE DISTRIBUIÇÃO BRASIL S/A   TO BE ENGAGED IN THE SAID LINE OF BUSINESS. ON JANUARY 02, 2006 THE COMPANY ADOPTED THE ABOVE MENTIONED NAME AND UP TO DATE IT IS STILL OPERATING WITHIN THE GENERAL SCENE REPORTED HEREIN.

 

THE COMPANY OPERATES WITH THE TRADE NAME OF "WALMART BRASIL"

 

LATE THE 80'S, THE LARGEST PORTUGUESE FINANCIAL GROUP AND ONE OF THE

 

EUROPEAN'S LARGEST OF THE DISTRIBUTION SECTOR, ARRIVED IN BRAZIL THROUGH A JOINT VENTURE WITH THE COMPANY JOSAPAR ARISING CIA REAL DE DISTRIBUIÇÃO, ESTABLISHED IN THE STATE OF RIO GRANDE DO SUL. YEARS AFTER, THE PORTUGUESE GROUP ACQUIRED THE TOTALITY OF THE BRAZILIAN COMPANY.

 

IN 1998, ASSOCIATED WITH THE COMPANY CÂNDIA MERCANTIL NORTE SUL, IN SÃO PAULO, IN AN AGREEMENT, WHICH ORIGINATED OTHER COMPANY NAMED SONAE DISTRIBUIÇÃO BRASIL S.A. AN OPERATION LATE 1998 MADE THE GROUP THE NEW PROPRIETORSHIP OF A CHAIN IN PARANA NAMED MERCADORAMA, FIRST IN THE RANKING IN THIS STATE. LATE JANUARY 1999, SONAE GROUP ALSO ACQUIRED THE EXTRA CHAIN IN RIO GRANDE DO SUL, AND LATER TOOK PLACE THE ACQUISITION OF THE CHAINS NACIONAL IN RIO GRANDE DO SUL, AND COLETÃO AND MUFFATÃO IN PARANÁ.

 

THE GROUP CONTROLS APPROXIMATELY 72 STORES NATIONWIDE, WITH THE BRANDS MAXXI FOR WHOLESALE AND CANDIA (SP), NACIONAL (RS), AND MERCADORAMA (PR) FOR SUPERMARKETS.

 

ACCORDING TO THE LOCAL MEDIA THE SUBJECT HAS DIVESTED 10 OF ITS SUPERMARKETS WITH THE BRAND BIG IN SÃO PAULO, WHICH WERE ACQUIRED BY CARREFOUR. AS A RESULT OF SUCH DIVESTMENT THE COMPANY OBTAINED ABOUT R$ 317.000.000 WHICH WILL BE USED TO SETTLE AT LEAST HALF OF THE COMPANY'S DEBTS IN BRAZIL WHICH ARE APPROXIMATELY R$ 600.000.000,00.

 

IN JANUARY 2006 THE SUBJECT TOOK OVER HUNTAIL PARTICIPAÇÕES LTDA, CNPJ 07.652.471-23.

 

IMPORTANT NOTE:

***************

 

ACCORDING TO THE WEBSITE OF BOM PREÇO, WHICH IS A SUBSIDIARY OF WAL-MART IN THE NORTHEASTERN REGION OF BRAZIL, THE PRESIDENT OF WAL-MART BRASIL, VICENT TRIUS ANNOUNCED TODAY THE ACQUISITION OF THE SUBJEC'S ASSETS BY THE AMOUNT OF EUR 635 MILLION. FURTHER INFORMATION IS NOT AVAILABLE YET.

 

ACCORDING TO EXTRAORDINARY GENERAL MEETING HELD ON JANUARY 02, 2006 THE SUBJECT ALTERED ITS CORPORATE NAME FROM SONAE DISTRIBUIÇÃO S/A TO WMS SUPERMERCADOS BRASIL LTDA.

 

FURTHER DETAILS ARE SO FAR NOT KNOWN.

 

REMARKS:

--------

 

WHEN CONTACTING THE SUBJECT WE INTERVIEWED MS. DANIELA, FINANCIAL DEPARTMENT, WHO INFORMED THAT WOULD NOT DISCLOSE ANY KIND OF INFORMATION UNLESS THE INQUIRING PARTY'S NAME WAS DISCLOSED.

 

IF IT IS POSSIBLE TO DISCLOSE THE NAME OF THE INTERESTED SUPPLIER OF THE SUBJECT, WE MAY RESUME OUR CONTACTS AND TRY TO OBTAIN FURTHER INFORMATION.

 

THE DATA CONTAINED HEREIN WERE OBTAINED FROM OUTSIDE SOURCES, OUR DATABASE AND OFFICIAL. NO FURTHER DATA WAS AVAILABLE WITH SEVERAL SOURCES USUALLY INVESTIGATED.

 

PUBLIC INFORMATION:

 

PROTESTS:

 

1657  PROTESTS,TOTAL AMOUNT R$ 13.455.157,13

    DATE OF FIRST PROTEST: 11/2010  R$ 3.434,19

    DATE OF HIGHEST PROTEST: 08/2014  R$ 331.822,68

 

DETAILS OF LATEST PROTESTS:

 

NOTARY OFFICE:

DATE:

VALUE:

 CARTORIO DE RS-ALVORADA

05/11/2015

R$ 3.863,25

 CARTORIO DE RS-ESTEIO

11/11/2015

R$ 14.619,14

 CARTORIO DE RS-ALVORADA

05/11/2015

R$ 3.615,75

 CARTORIO DE RS-ESTEIO

11/11/2015

R$ 1.927,15

 CARTORIO DE RS-ESTEIO

11/11/2015

R$ 2.425,15

 

LAWSUITS:

 

 

 

DATE:

COURT OF LAW:

 

12

FEDERAL LAWSUITS

21/03/14

VARA DE SP-RIO CLARO

31

STATE LAWSUITS

19/03/15

2ª VARA DE RS-ESTEIO

17

MUNICIPAL LAWSUITS

22/05/15

VARA DE SP-ARACATUBA

3

MONITORY SUITS

22/08/14

2ª VARA DE SP-EMBU

11

EXECUTIVE LAWSUITS

21/07/15

10ª VARA DE RS-PORTO ALEGRE

 

 


FINANCIAL INFORMATION

 

DUE TO THE SUBJECT'S LEGAL FORM, IT IS NOT OBLIGED TO PUBLISH THE BALANCE SHEET INFORMATION. WHEN INTERVIEWING SOURCES AT THE SUBJECT COMPANY DECLINED TO PROVIDE ANY KIND OF FINANCIAL INFORMATION.

 

OUTSIDE SOURCES CONTACTED SHOWED NO FINANCIAL DATA ABOUT THIS COMPANY.

 

EXCHANGE RATE:

 

 

US$ 1,00 = R$ 3,72

 - OFFICIAL RATE ON 24/11/2015

 

COMMENTS ON THE FINANCIAL INFORMATION:

 

IN THE ABSENCE OF FINANCIAL INFORMATION NO COMMENTS CAN BE MADE ABOUT THE SUBJECT'S CURRENT FINANCIAL STANDING. HOWEVER, IT IS WORTH COMMENTING THAT SUBJECT IS ONE OF THE LARGEST COMPANIES IN ITS LINE OF BUSINESS IN BRAZIL, THUS IT IS HOLDER OF HIGH FINANCIAL STRENGTH. FURTHER, NOW THAT SUBJECT IS A SUBSIDIARY OF THE WAL-MART GROUP, WHICH IS THE WORLD'S LARGEST RETAIL CHAIN AND HOLDER OF HUGE FINANCIAL POWER, THUS MAY GIVE THE SUBJECT THE NECESSARY FINANCIAL SUPPORT WHENEVER REQUIRED.

 

REAL ESTATE:

 

   OWNED PREMISES ARE VALUED AT R$ 227.240.000,00

 

VEHICLES:

 

   OWNED VEHICLES ARE VALUED AT R$ 4.581.000,00

 

MACHINES:

 

   OWNED MACHINES AND EQUIPMENTS ARE VALUED AT R$ 152.555.000,00

 

 

INSURANCE

 

THE SUBJECT IS SAID TO HOLD INSURANCE POLICIES BUT DETAILS WERE NOT DISCLOSED.

 

 

BANKING REFERENCES

 

 

BRANCH/PHONE:

 

BANCO ITAÚ S/A

51 3346-7800

 

BANCO ITAÚ S/A

51 3221-4477

 

BANCO SANTANDER (REAL) S/A

51 3221-2848

 

HSBC BANK BRASIL S/A

51 3346-1322

 

 

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").

 

 

ACTIVITIES COMMENTS

 

SUBJECT IS ENGAGED AS A HYPERMARKET AND SUPERMARKET CHAIN.

 

IMPORT AND EXPORT:

 

   IMPORTS FROM:

GERMANY, ARGENTINA, AUSTRIA, BELGIUM, BOLIVIA, CHILE, CHINA, COLOMBIA, DENMARK, SPAIN, USA, FRANCE, GREECE, HONG KONG, INDIA, ITALY, NETHERLANDS, PORTUGAL, UNITED KINGDOM, URUGUAY AND VENEZUELA.

 

   EXPORTS TO:

DOES NOT EXPORT.

 

MAIN CLIENTS:

 

 

 

 

 

DOMESTIC CLIENTS:

 

 

CONSUMIDOR FINAL

 

 

 

STAFF:

 

   NOT AVAILABLE

 

 

CONCEPT AND FULFILMENT

 

THE SUBJECT IS A WELL-ESTABLISHED SUBSIDIARY OF THE WALMART GROUP, OPERATING SINCE 1989. SO FAR IT SHOWS PROTESTED BILLS BUT ITS PAYMENT BEHAVIOR SHOW PAYMENTS INVOLVING HIGHER AMOUNTS, THUS SUCH PROTESTS DO NOT AFFECT THE SUBJECT'S REPUTATION.

 

IT ALSO HAS 39 PAST DUE BILLS WITH FINANCIAL INSTITUTIONS IN A TOTAL AMOUNT OF R$ 1.901.100,65

 

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.

 

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. USUALLY THIS KIND OF SUITS DO NOT AFFECT THE COMPANY REPUTATION BUT IN THE SUBJECT SPECIFIC CASE IT IS NOT POSSIBLE TO EVALUATE AS THERE ARE SEVERAL SUITS REGISTERED AND NO DETAILS REGARDING THE AMOUNTS INVOLVED ARE AVAILABLE FOR PUBLIC INSPECTION.

 

IN GENERAL, THE SUBJECT BELONGS TO WALMART GROUP, WHICH HAS GOOD REPUTATION BEING KNOWN AS ONE OF THE BIGGEST SUPERMARKET CHAINS OPERATING IN THE COUNTRY HOWEVER, ITS BEHAVIOR WITH SOME SUPPLIERS IS VERY NEGATIVE. THE SUBJECT TAKES ADVANTAGE FROM ITS HIGH FINANCIAL POWER AND PURCHASING POWER AS THERE ARE MANY POTENTIAL SUPPLIERS AND SOMETIMES SHOWS A VERY POOR PAYMENT BEHAVIOR.

 

IN SHORT THE SUBJECT HAS A GOOD PAYMENT BEHAVIOR WITH THE SUPPLIERS WHICH ARE DEEMED INTERESTING TO ITS OPERATIONS AND AN UNFAIR BEHAVIOR WITH THOSE WHICH ARE NOT CONSIDERED CORE SUPPLIERS FOR ITS OPERATIONS.

 

MAIN SUPPLIERS:

 

 

 

 

 

DOMESTIC SUPPLIERS:

CITY:

PHONE:

INDÚSTRIAS GESSY LEVER LTDA

SÃO PAULO/SP

11 3741-4333

JOHNSON & JOHNSON IND. COMÉRCIO LTDA

SÃO PAULO/SP

11 3817-8175

KRAFT FOODS BRASIL S/A

 

 

NESTLÉ INDUSTRIAL COMERCIAL LTDA

SÃO BERNARDO DO CAMPO/SP

11 3752-2504

NORTEC GUINDASTES NORTE CATARINENSE LTDA

 

47 3473-6009

PARMALAT BRASIL S/A INDÚSTRIA ALIMENTOS

SÃO PAULO/SP

11 3246-6977

PROD. ALIM. FLEISCHMANN & ROYAL

RIO DE JANEIRO/RJ

21 3574-1100

SINOSCAR S/A

 

51 3584-1459

UNILEVER BRASIL LTDA

 

 

 

PAYMENT HISTORY:

 

134 SUPPLIERS REPORTED PAYMENTS:

   TOTAL AMOUNT:  R$ 245.169.679,00

 

AMOUNT OF INVOICES PAID: 23555

TOTAL OF PROMPT PAYMENTS: 26,3%

TOTAL OF DELAYED PAYMENTS: 73,7%

 

HIGHEST INVOICE: R$ 7.805.470,00

HIGHEST CREDIT: R$ 7.805.470,00

 

OUTSTANDING INVOICES DUE WITHIN THE NEXT 91 DAYS:

 

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

SUPPLIERS:

INVOICES:

TOTAL AMOUNT:

DUE WITHIN 30 DAYS

35

3202

R$ 22.877.829,63

DUE WITHIN 60 DAYS

25

1051

R$ 11.746.924,42

DUE WITHIN 90 DAYS

12

129

R$ 2.647.022,14

DUE WITHIN 91 DAYS

6

106

R$ 4.123.156,72

 

 

FINAL OPINION

 

THE SUBJECT IS A WELL-ESTABLISHED AND REPUTED SUBSIDIARY OF THE WALMART GROUP IN BUSINESS FOR SEVERAL YEARS. IT FIGURES AMONG THE BRAZIL'S LARGEST SUPERMARKET CHAINS. IT IS POSSIBLE TO KEEP GOOD TRADE RELATION WITH IT; HOWEVER, CAUTION IS ADVISABLE, AS IT TENDS TO DELAY ITS PAYMENTS.

 

THE CREDIT LIMIT SHOULD BE ASSESSED ACCORDING TO INQUIRING PART'S CAPACITY TO FACE POSSIBLE DELAYS IN PAYMENTS. THE FULFILLMENT OF THE CONTRACT'S CONDITIONS BY THE SUPPLIERS AND A CONSTANT FOLLOW-UP OF THE RECEIVABLES ARE RECOMMENDED IN ORDER TO AVOID ARREARS. THE SUBJECT IS A COMPANY, WHICH TENDS TO DELAY ITS PAYMENTS, HOWEVER, SHOWS A MODEST RISK OF DEFAULT OR NON-PAYMENT.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.66.75

UK Pound

1

Rs.100.68

Euro

1

Rs.70.88

BRL

1

Rs.17.33

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

TRI

 

 

Report Prepared by :

NIT

 

               


 

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.