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MIRA INFORM REPORT
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Report No. : |
489163 |
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Report Date : |
02.02.2018 |
IDENTIFICATION DETAILS
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Name : |
GEM-YEAR INDUSTRIAL CO., LTD. |
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Registered Office : |
No. 8 Gem Year Road, Economic Development Zone,
Jiashan, Zhejiang Province 314100 PR |
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Country : |
China |
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Financials (as on) : |
30.09.2017 |
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Date of Incorporation : |
17.11.1995 |
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Unified Social
Credit Code : |
913300006094582496 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and selling of fasteners, tungsten steel mould, metal
products, steel wire drawing, and railway fastener; exporting business; researching
and developing fasteners; wholesaling steel rail and the above products;
import & export business, and commission agency. |
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No. of Employees : |
3,004 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January
2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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China |
A2 |
A2 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
CHINA - ECONOMIC OVERVIEW
Since the late 1970s, China has moved from a closed, centrally planned system to a more market-oriented one that plays a major global role. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, growth of the private sector, development of stock markets and a modern banking system, and opening to foreign trade and investment. China continues to pursue an industrial policy, state support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.
After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing announced it would allow a resumption of gradual liberalization. From 2013 until early2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.
The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - is that China is now one of the most rapidly aging countries in the world. Deterioration in the environment - notably air pollution, soil erosion, and the steady fall of the water table, especially in the North - is another long-term problem. China continues to lose arable land because of erosion and urbanization. The Chinese Government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.
The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. In recent years, China has renewed its support for state-owned enterprises in sectors considered important to "economic security," explicitly looking to foster globally competitive industries. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.
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Source
: CIA |
Company
name and address
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COMPANY NAME |
Gem-Year Industrial Co., Ltd. |
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CURRENT ADDRESS/ REGISTERED ADDRESS |
No. 8 Gem Year Road,
Economic Development Zone, Jiashan, Zhejiang Province 314100 PR China |
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TEL. NO. |
86 (0)
573-84185001 |
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FAX NO. |
86 (0)
573-84184488 |
EXECUTIVE
SUMMARY
Date of Registration : november 17, 1995
Unified social credit code : 913300006094582496
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : CNY 792,690,000
staff : 3,004
BUSINESS CATEGORY : MANUFACTURING & TRADING
REVENUE : CNY 2,111,238,000 (Consolidated, Jan. 1, 2017 to Sep. 30, 2017)
EQUITIES : CNY
2,690,272,000 (Consolidated, As of Sep. 30, 2017)
WEBSITE : www.gem-year.com
E-MAIL : admin@gem-year.net
PAYMENT : Regular
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : AVERAGE
Adopted
abbreviations (as follows)
SC – Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL
TREND & GENERAL REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL
STATUS & HISTORY
SC was established as shares
limited company of PRC with State Administration of Industry &
Commerce (SAIC) under Unified Social Credit Code: 913300006094582496.
SC’s registered capital: CNY 792,690,000
SC’s paid-in capital: CNY 792,690,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2015-11-6 |
Registration No./ Unified Social Credit
Code |
330000400000609 |
913300006094582496 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of Sep. 30,
2017) |
% of Shareholding |
|
Chin Champ
Enterprise Co.Ltd. |
41.35 |
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Central Huijin Asset Management Co., Ltd. |
2.45 |
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Pan Qinyu |
0.46 |
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Guo
Chengliang |
0.26 |
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Agricultural
Bank of China Co., Ltd.-Zhongzheng 500 Exchange Traded Fund |
0.26 |
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Hong Kong
Securities Clearing Company Limited |
0.26 |
|
Wu Jun |
0.25 |
|
Wang Yi |
0.21 |
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Tang
Youchui |
0.19 |
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Zhu
Longsheng |
0.18 |
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Other
Shareholders |
54.13 |
SC’s Chief Executives:-
|
Position |
Name |
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Legal
Representative and Chairman |
Cai Yonglong |
|
General
Manager |
Cai Jinzhang |
RECENT
DEVELOPMENT
SC is a listed company in Shanghai Stock Exchange
Market with the code of 601002.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
(As of Sep. 30, 2017)
Chin Champ Enterprise Co.Ltd. 41.35
Central Huijin Asset Management Co., Ltd. 2.45
Pan Qinyu 0.46
Guo Chengliang 0.26
Agricultural Bank of China Co.,
Ltd.-Zhongzheng 500 Exchange Traded Fund 0.26
Hong Kong Securities Clearing Company
Limited 0.26
Wu Jun 0.25
Wang Yi 0.21
Tang Youchui 0.19
Zhu Longsheng 0.18
Other Shareholders 54.13
MANAGEMENT
Cai Yonglong, Legal Representative and Chairman
------------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: China
Ø Qualification:
University
Ø Working experience
(s):
At present, working in SC as legal
representative and chairman
Cai Jinzhang, General Manager
------------------------------------------------------
Ø
Gender: M
Ø
Nationality: China
Ø Qualification:
University
Ø Working experience
(s):
At
present, working in SC as general manager
BUSINESS
OPERATION
SC’s registered
business scope includes manufacturing and selling fasteners, tungsten steel
mould, metal products, steel wire drawing, and railway fastener; exporting
business; researching and developing fasteners; wholesaling steel rail and the
above products; import & export business, and commission agency.
SC is mainly
engaged in manufacturing and selling fasteners, etc.
SC’s products mainly include: fasteners, etc.
Trademark:
SC sources its materials 100% from domestic
market. SC sells 60% of its products in domestic market, and 40% to overseas
market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Major Customers,
----------------------
Tornillos Y Accesorios De
Porteous Fastener Co.
Staff & Office:
--------------------------
SC is known
to have approx. 3,004 staff at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC is known to invest in
the following companies,
Gem-Year
Industrial Supply Company
Shenyang
Gem-Year Logistics Co., Ltd.
Quanzhou
Gem-Year Logistics Co., Ltd.
Gem-Kai
International Trading (Shanghai) Co., Ltd.
Gem-Year
Auto-Parts (Guangzhou) Co., Ltd.
Zhejiang
Jinji Auto Parts Co., Ltd.
Etc.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be determined
The appraisal serves as a reference to reveal SC's payments habits and
ability to pay. It is based on the 3
weighed factors: Trade payment experience (through current enquiry with SC's
suppliers), our delinquent payment records and our debt collection record
concerning SC.
Trade payment experience: SC did not
provide any name of trade/service suppliers and we have no other sources to
conduct the enquiry at present.
Delinquent payment record: None in our
database.
Debt collection record: No overdue amount
owed by SC was placed to us for collection within the last 6 years.
BANKING
Basic Bank:
Bank of China Jiashan Sub-branch
AC#: 88400028585885
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 20116 |
As of Sep. 30, 2017 |
|
235,083 |
42,487 |
|
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Accounts receivable |
547,219 |
652,385 |
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Notes receivable |
45,191 |
120,115 |
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Advances to suppliers |
215,152 |
259,793 |
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Interest receivable |
0 |
0 |
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Dividend receivable |
0 |
0 |
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Other receivable |
2,611 |
31,521 |
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Inventory |
1,483,939 |
1,611,276 |
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Non-current assets within one year |
0 |
0 |
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Other current assets |
180,288 |
160,164 |
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|
------------------ |
------------------ |
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Current assets |
2,709,483 |
2,877,741 |
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Long-term investments |
20,779 |
17,602 |
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Investment real estate |
34,288 |
33,580 |
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Fixed assets |
1,214,471 |
1,151,914 |
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Construction in progress |
97,989 |
139,324 |
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Project materials |
0 |
0 |
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Intangible assets |
115,812 |
112,245 |
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Goodwill |
5,366 |
5,365 |
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Long-term deferred expense |
0 |
0 |
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Deferred income tax assets |
44,837 |
41,363 |
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Other non-current assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
4,243,025 |
4,379,134 |
|
|
============= |
============= |
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Short-term loans |
105,012 |
40,000 |
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Notes payable |
434,764 |
379,879 |
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Accounts payable |
234,830 |
267,216 |
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Payroll payable |
21,243 |
17,885 |
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Taxes payable |
45,942 |
55,314 |
|
Interest payable |
119 |
43 |
|
Dividend payable |
5,000 |
0 |
|
Advances from clients |
27,121 |
27,212 |
|
Other payable |
38,057 |
70,681 |
|
Non-current liabilities within one year |
36,000 |
18,000 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
948,088 |
876,230 |
|
Non-current liabilities |
758,447 |
812,632 |
|
|
------------------ |
------------------ |
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Total liabilities |
1,706,535 |
1,688,862 |
|
Equities |
2,536,490 |
2,690,272 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
4,243,025 |
4,379,134 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2016 |
Jan. 1, 2017 to Sep. 30, 2017 |
|
Revenue |
2,284,401 |
2,111,238 |
|
Cost of
sales |
1,776,395 |
1,603,670 |
|
Business
Taxes and Surcharges |
20,814 |
18,053 |
|
Sales expense |
100,040 |
80,293 |
|
Management expense |
168,771 |
134,756 |
|
Finance expense |
18,356 |
28,683 |
|
Asset impairment loss |
76,789 |
57,874 |
|
Investment income |
-21,621 |
25,127 |
|
Non-operating income |
18,455 |
9,540 |
|
Non-operating expense |
5,431 |
11,495 |
|
Profit before tax |
114,638 |
211,080 |
|
Less: profit tax |
32,555 |
60,244 |
|
82,083 |
150,836 |
Important Ratios
=============
|
|
As of Dec. 31, 2016 |
As of Sep. 30, 2017 |
|
*Current ratio |
2.86 |
3.28 |
|
*Quick ratio |
1.29 |
1.45 |
|
*Liabilities to assets |
0.40 |
0.39 |
|
*Net profit margin (%) |
3.59 |
7.14 |
|
*Return on total assets (%) |
1.93 |
3.44 |
|
*Inventory / Revenue ×365/270 |
238 days |
207 days |
|
*Accounts receivable / Revenue ×365/270 |
88 days |
84 days |
|
*Revenue / Total assets |
0.54 |
0.48 |
|
*Cost of sales / Revenue |
0.78 |
0.76 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears large.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear average.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: FAIRLY
GOOD
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.61 |
|
|
1 |
INR 90.18 |
|
Euro |
1 |
INR 78.95 |
|
CNY |
1 |
INR 10.20 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
NIS |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.