MIRA INFORM REPORT

 

 

Report No. :

342367

Report Date :

09.10.2015

 

IDENTIFICATION DETAILS

 

Name :

CHANG CHUN PETROCHEMICAL CO., LTD.

 

 

Registered Office :

7F, No. 301, Songkiang Rd., Taipei City, R.O.C.

 

 

Country :

Taiwan

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

10.07.1964

 

 

Com. Reg. No.:

11384806

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and Sales of Chemicals.

 

 

No. of Employees :

About 1,600 Employees

 

 

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)

Taiwan

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

TAIWAN - ECONOMIC OVERVIEW

 

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are other major long-term challenges.

 

Free trade agreements have proliferated in East Asia over the past several years. Following the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, Taiwan in July 2013 signed a free trade deal with New Zealand - Taipei’s first-ever with a country with which it does not maintain diplomatic relations - and, in November, inked a trade pact with Singapore. However, follow-on components of the ECFA, including a signed agreement on trade in services and negotiations on trade in goods and dispute resolution, have stalled. In early 2014, the government bowed to public demand and proposed a new law governing the oversight of cross-Strait agreements, before any additional deals with China are implemented; the legislature has yet to vote on such legislation, leaving the future of ECFA up in the air as President MA enters his final full year in office. MA has portrayed ECFA as Taiwan’s key to greater participation in East Asia’s free trade networks.

 

Taiwan's total fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 expected to account for nearly 20% of the island's total population by 2025.

 

The island runs a trade surplus, largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind those of China, Japan, Saudi Arabia, and Switzerland. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Taiwan since 2009 has gradually loosened rules governing Chinese investment on the island and has also secured greater market access for its investors in the mainland. In August 2012, the Taiwan Central Bank signed a memorandum of understanding (MOU) on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which has helped Taiwan develop into a local RMB hub.

 

Closer economic links with the mainland bring greater opportunities for Taiwan’s economy but also pose new challenges as the island becomes more economically dependent on China at a time when political differences remain unresolved. During 2014, the press paid increasing attention to domestic economic issues, while pushing aside the debates over trade liberalization that were a hallmark of MA’s tenure. The media focused on the divide between Taiwan’s “haves” and “have nots,” providing extensive coverage of public frustration with stagnant wages, skyrocketing housing prices, and the difficulty of finding decent entry-level jobs.

 

Source : CIA

 

 

Contact Points

 

Company Name:

Chang Chun Petrochemical Co., Ltd.

Supplied Name:

CHANG CHUN PETROCHEMICAL CO LTD

Trading Address:

7F, No. 301, Songkiang Rd., Taipei City, Taiwan R.O.C.

Supplied Address:

NO. 301 SONGKIANG ROAD, 7TH FLOOR,TAIPEI-10477 TAIWAN

Telephone Number:

+886-2-2503-8131/ 2500-1800

Fax Number:

+886-2-2503-3378/ 2501-8018

Notes: The exact name and address are as above.

 

 

Company Identification Details

 

Registered Name:

Chang Chun Petrochemical Co., Ltd.

Registered Address:

7F, No. 301, Songkiang Rd., Taipei City, Taiwan R.O.C.

Date of Foundation:

1964-7-10

Registration Number:

11384806

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 7,151,862,870 (USD 228,859,611.84)

(As of 2015.10, 1 NTD = 0.0320 USD)

Paid-up Capital:

NTD 7,151,862,870 (USD 228,859,611.84)

Legal Representatives:

Longxing Liao

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of chemicals.

Staff:

About 1,600 Employees

Listed at Stock Exchange:

No

Date of Last Annual Return:

2015-6-9

 

 

History

 

Subject was incorporated on 1964-7-10 with registered number 11384806 as Joint Stock Company in Taiwan.

 

Subject was public offer without listing on 1981-11-1 with the symbol code 1764.

 

 

Corporate Structure

 

Factories

1

Name:

Chang Chun Petrochemical Co., Ltd. Miao-Li Factory

Address:

No. 246-3, No.246, Fusingshan, Miaoli City, Miaoli County 360, Taiwan (R.O.C.)

Tel

+886-37-320673

Fax

+886-37-333920

Date of Foundation:

1969-1-1

Date of Registration:

1969-11-7

Factory Registration Number:

99631525

Factory Manager:

Chaoxing Chen

Status:

In Production

Date of Last Annual Return:

2015-8-18

Major Products:

089 other food

181 basic chemicals

184 synthetic resin, plastic and rubber

199 other chemicals

220 plastic products

339 other products

2

Name:

Chang Chun Petrochemical Co., Ltd. Miao-Li 2nd Factory

Address:

No.245, Fusingshan, Miaoli City, Miaoli County 360, Taiwan (R.O.C.)

Date of Foundation:

1976-11-5

Date of Registration:

1978-9-25

Factory Registration Number:

99631524

Factory Manager:

Chaoxing Chen

Status:

In Production

Date of Last Annual Return:

2015-1-23

Major Products:

089 other food

181 basic chemicals

184 synthetic resin, plastic and rubber

199 other chemicals

220 plastic products

243 copper

254 processing of metal

3

Name:

Chang Chun Petrochemical Co., Ltd. Mailiao Factory

Address:

No.26, 7 Lin, Formosa Industrial Park, Sansheng Village, Mailiao Township, Yunlin County, Taiwan (R.O.C.)

Date of Registration:

2002-8-15

Factory Registration Number:

99653756

Factory Manager:

Jinjun Cai

Status:

In Production

Date of Last Annual Return:

2015-1-13

Major Products:

181 basic chemicals

182 petrochemical materials

184 synthetic resin, plastic and rubber

4

Name:

Chang Chun Petrochemical Co., Ltd. Dafa Factory

Address:

No.11, Jianye Rd., Daliao Dist., Kaohsiung City, Taiwan (R.O.C.)

Date of Foundation:

1988-8-31

Date of Registration:

1992-5-4

Factory Registration Number:

99665402

Factory Manager:

Houfu Chen

Status:

In Production

Date of Last Annual Return:

2014-1-26

Major Products:

339 other products

199 other chemicals

 

 

Major Related Companies

1

Name:

Chang Chun Plastics Co., Ltd.

2

Name:

Chang Chun Petrochemical Co., Ltd.

 

Name:

Tai Hong Circuit Ind. Co., Ltd.

3

Name:

Dairen Chemical Corporation

4

Name:

Chang Chiang Chemical Co., Ltd.

5

Name:

Tsu-Kong Co., Ltd.

6

Name:

Triplex Chemical Corporation

7

Name:

Ji Lin Chemical Co., Ltd.

8

Name:

Polyplastics Taiwan Co., Ltd.

9

Name:

Sumitomo Bakelite (Taiwan) Corporation Limited

10

Name:

PT. Chang Chun DPN Chemical Industry

11

Name:

Guangdong Shen Xing Chemical Ltd. Co.

 

Name:

OK Taiwan Co., Ltd.

12

Name:

Trcct Technology Co., Ltd.

13

Name:

Chang Chun Japan Co., Ltd.

 

 

Shareholders

 

Major Shareholders

 

Name

Subscription Shares

Longxing Liao

56,792,372

Xinyi Zheng

108,528,233

Shuhong Lin

17,993,236

Xiandong Lin

34,645,757

Zheng Zheng

36,757,378

Bokai Liao

5,738,513

Qingying Lin

38,552,277

Xianzhang Chen

351,521

Jie Wang

5,738,513

 

 

Management Information

 

Core Management

 

Directors

1

Name

Longxing Liao

Position

Board Chairman

2

Name

Xinyi Zheng

Position

Executive Director

3

Name

Shuhong Lin

Position

Executive Director

4

Name

Xiandong Lin

Position

Director

5

Name

Zheng Zheng

Position

Director

6

Name

Bokai Liao

Position

Director

7

Name

Qingying Lin

Position

Director

8

Name

Houfu Chen

Position

Director

9

Name

Xianzhang Chen

Position

Director

10

Name

Jie Wang

Position

Supervisor

11

Name

Shiguang Su

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 1,600 Employees

 

 

Operation Information

 

Offices & Factories

 

 

Headquarters

Add

7F, No. 301, Songkiang Rd., Taipei City, Taiwan R.O.C.

 

 

Production Information

 

Subject is a manufacturer of chemicals, etc.

Subject has four factories in Taiwan for production and the total area is about 450,000 square meters.

Subject has obtained the certifications of ISO 9000, ISO 14001 and OHSAS 18000, etc.

 

Purchase Information

 

The registered activities of subject:

Business Code

Details

C801010

Basic chemical manufacturing industry

C801030

Precision chemical material manufacturing industry

C802060

Animal drug manufacturing industry

C802120

Additive manufacturing industry

C801020

Petrochemical raw materials manufacturing industry

C801040

Synthetic resin manufacturing industry

C801050

Plastic raw material manufacturing industry

CB01030

Pollution controlling equipment manufacturing industry

CC01010

Power generation, transmission and distribution machinery manufacturing industry

CC01020

Electric wires and cables manufacturing industry

CC01050

Data storage and processing equipment manufacturing industry

CC01080

Electronic parts and components manufacturing industry

E599010

Piping engineering industry

I601010

Leasing industry

J101040

Waste treatment and disposal industry

A101020

Crops growing industry

C201010

Feed manufacturing industry

C401010

Leather finishing industry

C601010

Pulp manufacturing industry

C601020

Paper manufacturing industry

C601030

Paper container manufacturing industry

C801060

Synthetic rubber manufacturing industry

C801070

High pressure gas industry

C802010

Fertilizers manufacturing industry

C802020

Man-made fibers manufacturing industry

C802030

Coatings and paint industry

C802090

Cleaning preparations manufacturing industry

C901020

Glass and glass products manufacturing industry

CA01110

Copper industry

CA03010

Metal heat treating industry

CA04010

Metal surface treating industry

CB01010

Machinery and equipment manufacturing industry

CC01060

Wired communications equipment and apparatus manufacturing industry

ZZ99999

Besides licensed business, all other business items that are not banned or restricted.

 

The raw materials for production are purchased from both home and abroad such as Taiwan domestic market and Southeast Asia, etc.

 

Sales Information

 

Subject is mainly engaged in sales of chemicals, etc.

Subject’s major products include polyvinyl alcohol, glacial acetic acid, butyl acetate, formalin, hexamine, hydrogen peroxide, ultra-purity electronic grade hydrogen peroxide, epoxidized soya bean oil, copper foil, antioxidants and melamine, etc.

It is introduced that the products sold by subject are applied to the industries of textile, coating, semi-conductor, pharmaceutical, electronic, paper and plastic, etc.

Subject’s sales regions include Asia, America, Europe and Africa, etc.

Subject’s major customers are Quadra Chemicals Ltd and Ei Dupont De Nemours & Co Inc, etc.

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

 

Domestic Purchase

Products

Raw materials, etc

Payment Terms

T/T, etc

 

Import

Products

Raw materials, etc

Payment Terms

L/C, T/T, etc

 

Sales

 

Domestic Markets

Product

Chemicals, etc

Selling Terms

T/T, etc

 

Export

Product

Chemicals, etc

Selling Terms

L/C, T/T, etc

 

 

Balance Sheet

 

Unit: NTD/000

 

2014-12-31

2013-12-31

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

191,690.00

769,818.00

Derivative financial assets from safety-current

215,960.00

0.00

Notes receivable - net

59,112.00

65,702.00

Notes receivable - related parties - net

0.00

139.00

Accounts receivable - net

4,130,419.00

3,777,525.00

Accounts receivable - related parties - net

3,157,850.00

2,913,263.00

Other financial assets - current

1,398,577.00

1,871,377.00

Inventories

7,621,785.00

7,850,492.00

Other current assets

179,009.00

177,155.00

Current assets

16,954,402.00

17,425,471.00

Funds and Investments

 

 

Available-for-sale financial assets-non current

1,296.00

1,296.00

Derivative financial assets for Hedging -non-current

328,493.00

0.00

Financial assets at cost-non current

385,561.00

385,561.00

Long-term equity investments under the equity method

36,484,573.00

34,995,375.00

Investments

36,484,573.00

34,995,375.00

Other financial assets – non current

202,890.00

52,586.00

Funds and investments

37,402,813.00

35,434,818.00

Fixed Assets

 

 

Cost

 

 

Land

3,222,749.00

3,200,231.00

Land improvements

104,311.00

104,311.00

Buildings and structures

4,707,997.00

4,462,240.00

Machinery and equipment

41,680,684.00

40,698,007.00

Transportation equipment

269,035.00

256,638.00

Leasehold improvements

87,839.00

87,839.00

Other facilities

5,649,669.00

5,358,347.00

Revaluation increment

135,298.00

135,675.00

Cost and revaluation increment

55,857,582.00

54,303,288.00

Accumulated depreciation

-34,661,095.00

-31,928,156.00

Construction in process and prepayment for equipment

3,298,062.00

1,701,836.00

Fixed assets

24,494,549.00

24,076,968.00

Intangible Assets

 

 

Other assets

 

 

Deferred income tax assets – non current

464,934.00

604,924.00

Other assets - other

110,712.00

93,256.00

Other assets

575,646.00

698,180.00

Assets

79,427,410.00

77,635,437.00

Liabilities and Stockholders' Equity

 

 

Liabilities

 

 

Current Liabilities

 

 

Short-term borrowing

6,409,500.00

8,199,142.00

Derivative Financial Liabilities For Hedging - current

0.00

50,647.00

Notes payable – related parties

61,242.00

73,308.00

Accounts payable

1,596,133.00

1,545,429.00

Accounts payable – related parties

203,251.00

263,991.00

Income tax payable

679,281.00

378,378.00

Accrued expenses

1,673,032.00

1,518,930.00

Other financial liabilities - current

579,103.00

503,692.00

Other current liabilities

267,075.00

169,067.00

Current liabilities

11,468,617.00

12,702,584.00

Long term Liabilities

 

 

Derivative Financial Liabilities For Hedging – non current

0.00

49,016.00

Long-term loans

11,894,500.00

13,985,650.00

Long term liabilities

11,894,500.00

14,034,666.00

Reserves

 

 

Other Liabilities

 

 

Pension reserve / accrued pension liability

1,273,060.00

1,312,519.00

Guarantee deposit received

207,349.00

207,349.00

Other liabilities - other

30,717.00

20,362.00

Other liabilities

1,511,126.00

1,540,230.00

Liabilities

24,874,243.00

28,277,480.00

Stockholders' Equity

 

 

Capital

 

 

Common stock

7,151,863.00

5,090,294.00

Capital Surplus

 

 

Capital surplus – long-term investment

19,487.00

19,487.00

Capital surplus

19,487.00

19,487.00

Retained Earnings

 

 

Legal reserve

6,373,864.00

5,958,259.00

Special reserve

81,798.00

48,659.00

Unappropriated retained earnings

38,687,634.00

36,848,967.00

Retained earnings

45,143,296.00

42,855,885.00

Stockholders' Equity and Other adjustment

 

 

Cumulative translation adjustments

2,174,940.00

1,377,269.00

Profit (loss) of not recognized pension cost

-4,236.00

0.00

Unrealized gains (losses) on financial instruments

-29,003.00

-81,798.00

Unrealized revaluation increment

96,820.00

96,820.00

Stockholders other equity adjustments

2,238,521.00

1,392,291.00

Stockholders-equity

54,553,167.00

49,357,957.00

Number of treasury stock acquired by the company and subsidiaries (unit: share)

0.00

0.00

Equivalent shares of outstanding of advance receipts for common stock (unit: share)

0.00

0.00

 

 

Profit and Loss Account

 

Unit: NTD/000

 

2014

2013

Sales

48,412,434.00

43,142,256.00

Sales return

100,988.00

188,689.00

Sales discounts

243,408.00

189,655.00

Sales

48,068,038.00

42,763,912.00

Operating income

48,068,038.00

42,763,912.00

Selling cost

40,326,301.00

37,223,079.00

Operating cost

40,326,301.00

37,223,079.00

Gross profit (loss) from operations

7,741,737.00

5,540,833.00

Unrealized gains on intercompany transactions

0.00

20,362.00

Realized gains on intercompany transactions

20,362.00

29,099.00

Selling expense

1,875,153.00

1,691,144.00

General and administrative expenses

307,114.00

247,587.00

Research and development expenses

141,506.00

127,480.00

Operating expenses

2,323,773.00

2,066,211.00

Operating income (loss)

5,438,326.00

3,483,359.00

Non-Operating Income

 

 

Interest income

12,662.00

14,964.00

Investment income

1,569,981.00

1,325,304.00

Investment income under equity method

1,276,792.00

1,182,891.00

Dividend income

293,189.00

142,413.00

Gain on disposal of fix assets

0.00

5,104.00

Foreign exchange gains

392,376.00

226,664.00

Miscellaneous income

354,325.00

317,844.00

Non-operating revenues and gains

2,329,344.00

1,889,880.00

Non-Operating Expenses

 

 

Interest expense

245,817.00

286,585.00

Loss of fixed assets

10,520.00

0.00

Loss of investment assets

77.00

0.00

Miscellaneous disbursements

23,341.00

28,152.00

Non-operating expenses and losses

279,755.00

314,737.00

Income (loss)from continuing operations before income tax

7,487,915.00

5,058,502.00

Income tax expense (benefit)

731,226.00

902,453.00

Income (loss) from continuing operations

6,756,689.00

4,156,049.00

Net income (loss)

6,756,689.00

4,156,049.00

 

 

Cash Flows

 

Unit: NTD/000

 

2014

2013

Cash Flows from Operating Activities - Indirect Method

 

 

Net Income (Loss)

6,756,689.00

4,156,049.00

Adjustment items

 

 

Depreciation Expense

2,785,093.00

2,677,988.00

Transfer income from bad debt

-29,167.00

--

Loss (Gain) on Decline (Recovery) in Market Value, Scrap and Obsolescence of Inventories

--

-461,102.00

Investment Income Recognized under Equity Method

-1,276,792.00

-1,182,891.00

Invested Company Cash Dividend under Equity Method

739,704.00

451,305.00

Gain on Disposal of Fix Assets

10,520.00

-5,104.00

Loss on Disposal Of Investment Assets

77.00

--

Other

 

-

Changes in Operating Assets and Liabilities

 

 

Changes in Operating Assets

 

 

Notes Receivable

6,729.00

346,427.00

Account Receivable

-421,541.00

24,430.00

Inventories

228,707.00

185,841.00

Other Current Assets

-6,973.00

95,875.00

Other Financial Assets - current

326,027.00

-351,106.00

Deferred Income Tax Assets

30,412.00

499,748.00

Changes in Operating Liabilities

 

 

Notes Payable

-12,066.00

-97,405.00

Account Payable

-10,036.00

42,790.00

Income Tax Payable

300,903.00

172,754.00

Accrued Expenses

154,102.00

184,722.00

Other Financial Liabilities

-67,273.00

4,516.00

Other Current Liability

79,308.00

94,337.00

Accrued Pension Liabilities

-39,459.00

-30,539.00

Deferred credit

-20,362.00

-8,737.00

Net Cash Flows from Operating Activities

9,534,602.00

6,799,898.00

Cash Flows from Investing Activities

 

 

Acquisition of investments accounted for using equity method

4,602.00

-

Financial Assets At Cost – Non Current

-

-15,986.00

Increased in Long-term Equity Investments under Equity Method

-1,061.00

-2,163,676.00

Purchase of Property, Plant and Equipment

-3,133,267.00

-2,196,831.00

Proceeds from Disposal of Property, Plant and Equipment

6,527.00

8,617.00

Other financial assets-non-current

-150,304.00

-12,796

Other Assets

-17,456.00

-75,783.00

Net Cash Provided by (Used in) Investing Activities

-3,290,959.00

-4,456,455.00

Cash Flows from Financing Activities

 

 

Short-term Borrowing

-1,835,542.00

-1,240,547.00

Long-term Loans Borrowing

-2,634,750.00

2,887,200.00

Repay long-term loans

-

-3,200,000.00

Guarantee Deposit Received

-

-300.00

Issue Cash Dividend

-2,351,479.00

-755,263.00

Net Cash Provided by (Used in) Financial Activities

-6,821,771.00

-2,317,647.00

Net Increase (Decrease) in Cash and Cash Equivalents

-578,128.00

34,533.00

Cash and Cash Equivalents, Beginning of year

769,818.00

735,285.00

Cash and Cash Equivalents, End of year

191,690.00

769,818.00

Supplemental Cash Flow Information

 

 

Non Capitalized Interest-Interest Paid

247,906.00

287,324.00

Payable Income Tax

399,911.00

229,952.00

Non-Cash Investing and Financing Activities

 

 

Capital surplus increase

2,061,569.00

-

Fix Assets

3,219,721.00

2,263,269.00

Add: Other Payables, Beginning of year

330,254.00

263,816.00

Minus: Other Payables, End of year

-416,708.00

-330,254.00

 

3,133,267.00

2,196,831.00

Note: The above financial figures are based on the Taiwan generally accepted accounting principle.

 

 

Bankers

 

Subject declined to disclose its bank details; from other source we cannot obtain the relevant information, either.

 

 

Public Record

 

Mortgage

 

1

Case Type:

Chattel Mortgage

Certificate No.:

067333

Debtor Name:

Chang Chun Petrochemical Co., Ltd.

Document Number:

574748

Date of Registration:

2000-8-29

Status:

Paid Off

2

Case Type:

Chattel Mortgage

Certificate No.:

067377

Debtor Name:

Chang Chun Petrochemical Co., Ltd.

Document Number:

574895

Date of Registration:

2000-8-31

Status:

Paid Off

3

Case Type:

Chattel Mortgage

Certificate No.:

068663

Debtor Name:

Chang Chun Petrochemical Co., Ltd.

Document Number:

579757

Date of Registration:

2000-12-11

Status:

Paid Off

4

Case Type:

Chattel Mortgage

Certificate No.:

072672

Debtor Name:

Chang Chun Petrochemical Co., Ltd.

Document Number:

09105061590

Date of Registration:

2002-3-13

Status:

Paid Off

5

Case Type:

Chattel Mortgage

Certificate No.:

075958

Debtor Name:

Chang Chun Petrochemical Co., Ltd.

Document Number:

09205110310

Date of Registration:

2003-5-15

Status:

Paid Off

 

Lawsuit

 

Up to date of reporting, no existing or latent litigation of the subject has been found.

 

 

Interview Details

 

Name:

Ms. Lin

Department:

Sales Department

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.16

UK Pound

1

Rs.99.78

Euro

1

Rs.73.33

 

INFORMATION DETAILS

 

Analysis Done by :

RAS

 

 

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.