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|
MIRA
INFORM REPORT
|
Report No. : |
484122 |
|
Report Date : |
05.01.2018 |
IDENTIFICATION DETAILS
|
Name : |
BASHUNDHARA PAPER MILLS LTD. |
|
|
|
|
Formerly Known As : |
·
BASHUNDHARA
TISSUE INDUSTRIES LTD. ·
FREYSCHMIDT
TISSUE LTD. |
|
|
|
|
Registered Office : |
Plot# 125/A, Road# 2, Block# A, Bashundhara
R/A, Baridhara, Dhaka-1229 |
|
|
|
|
Country : |
Bangladesh |
|
|
|
|
Financials (as on) : |
31.03.2017 |
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Date of Incorporation : |
28.09.1993 |
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|
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Com. Reg. No.: |
C-24705 |
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|
|
|
Legal Form : |
Public Listed Company |
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|
|
|
Line of Business : |
Manufacturer, Distributor, Exporter and Importer of Tissue Papers, Flat Paper, White Writing Paper, Base Paper, Color Printing Paper |
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|
|
No. of Employees : |
2710 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
Bangladesh |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
BANGLADESH - ECONOMIC OVERVIEW
Bangladesh's economy has grown roughly 6% per year since 1996 despite prolonged periods of political instability, poor infrastructure, endemic corruption, insufficient power supplies, and slow implementation of economic reforms. Although more than half of GDP is generated through the services sector, almost half of Bangladeshis are employed in the agriculture sector, with rice as the single-most-important product.
Garment exports, the backbone of Bangladesh's industrial sector, accounted for more than 80% of total exports and surpassed $25 billion in 2016. The sector continues to grow, despite a series of high-profile factory accidents that have killed more than 1,000 workers and crippling strikes, including a nationwide transportation blockade orchestrated by the political opposition during the first several months of 2015. Steady export growth in the garment sector combined with remittances from overseas Bangladeshis - which totaled about $15 billion and 8% of GDP in 2015 - are key contributors to Bangladesh's sustained economic growth and rising foreign exchange reserves.
|
Source : CIA |
EXECUTIVE SUMMARY
|
IDENTIFICATION DETAILS |
||
|
Correct company Name |
: |
Bashundhara Paper
Mills Ltd. |
|
Previous Name |
: |
Bashundhara Tissue
Industries Ltd. |
|
Previous Name |
: |
Freyschmidt Tissue
Ltd. |
|
Head Office |
: |
Plot# 125/A, Road# 2, Block# A, Bashundhara
R/A, Baridhara, Dhaka-1229, Bangladesh.
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|
Tel No |
: |
88-02-8432008 |
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Fax No |
: |
88-02-55037257 |
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E-mail |
: |
info@bg.com.bd |
|
Website |
: |
www.bashundharapapermill.com |
|
Date/ Year of Incorporation |
: |
28.09.1993 |
|
Date of Commercial Production |
: |
01.03.1997 |
|
Incorporation No. |
: |
C-24705 |
|
Legal Form (General) |
: |
Public Listed Co Public (but not listed) Private Co State-owned Co Sole Proprietorships Partnership Not Registered others (please specify)
________________ |
|
Legal form (Specific) |
: |
LTD CORP INC CO others (please specify)
________________ |
|
Issuing Authority |
: |
Registrar
of Joint Stock Companies & Firms City Corporation Municipal Administration Union Council Cantonment Board Chief Controller of Import & Export (CCIE) |
FINANCIALS- SUMMARY
|
Year |
Turnover/
Sales |
Assets |
Income |
|
30th June’2016 |
BDT 3,061,662,292 (January-March,2016) |
BDT 18,908,848,937 |
BDT
127,748,625 (January-March,2016) |
|
31st March’2017 |
BDT 2,572,871,037 (January-March,2017) |
BDT 19,707,413,738 |
BDT
166,156,607 (January-March,2017) |
FULLCHECK REPORT DETAILS
|
Information Parted By |
||
|
Name |
: |
Mr. Muhammad Manjur
Hossain |
|
Designation |
: |
Manager (In charge)
International Marketing & Export |
|
Contract No |
: |
Nil |
|
Locations Details |
||
|
Operating Address |
: |
Plot# 125/A, Road# 2, Block# A, Bashundhara
R/A, Baridhara, Dhaka-1229, Bangladesh.
|
|
Tel No |
: |
88-02-8432008 |
|
Fax No |
: |
88-02-55037257 |
|
E-mail |
: |
info@bg.com.bd |
|
Website |
: |
www.bashundharapapermill.com |
|
Location : |
:
Owned |
Ö |
|
Rented |
|
|
Leased |
|
Area |
3500 |
Sq. ft. |
|
Type of
Office : |
: Commercial Office Bldg. |
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Semi-commercial office Bldg. |
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Retail shop |
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Industrial Park |
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Business Center |
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Home Office |
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Residential Bldg. |
Ö |
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Factory-1: |
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Address |
: |
Meghnaghat, Newtown,
Sonargaon, Narayangonj, Bangladesh. |
|||||||
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Tel No |
: |
88-01199850865 |
|||||||
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Fax No |
: |
Nil |
|||||||
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Factory-2: |
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Address |
: |
Anarpura, Gazaria,
Munshigonj, Bangladesh.
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|
Tel No |
: |
Nil |
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Fax No |
: |
Nil |
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Marketing Office: |
||
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|
|
Address |
: |
Plot# 56/A, Block# C, Umme Kulsum Road, Bashundhara R/A, Dhaka-1229, Bangladesh. |
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Tel No |
: |
Nil |
|
Fax No |
: |
Nil |
|
Marketing & Sales Office: |
||
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|
|
|
|
Address |
: |
Bashundhara City, 13/Ka/1, Panthapath, Dhaka-1215, Bangladesh. |
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Tel No |
: |
88-02-8119006 |
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Fax No |
: |
88-02-9112462 |
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Employee: |
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No. of
Employees |
In Office |
: |
436 |
In Factory |
: |
2274 |
||
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Branch |
: |
Nil |
Total |
: |
2710 |
|||
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Details: |
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OWNERSHIP/SHAREHOLDERS
|
Names of
Shareholders |
No. of
Share |
Country |
|
Mr. Ahmed Akbar Sobhan |
4000000 |
Bangladesh. |
|
Mrs. Afroza Begum |
5885200 |
Bangladesh. |
|
Mr. Sadat Sobhan |
8203000 |
Bangladesh. |
|
Mr. Safiat Sobhan |
8203000 |
Bangladesh. |
|
Mr. Sayem Sobhan |
8203000 |
Bangladesh. |
|
Mr. Safwan Sobhan |
8203000 |
Bangladesh. |
|
Md. Imrul Hassan |
4002000 |
Bangladesh. |
|
East West Property Development (Pvt.) Ltd |
101050575 |
Bangladesh. |
DIRECTORS
|
Name |
: |
Mr. Ahmed Akbar Sobhan |
|
Designation |
: |
Chairman |
|
Nationality |
: |
Bangladeshi. |
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Email address |
: |
N/A |
|
Other details |
: |
N/A |
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||
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||
|
Name |
: |
Mr. Safwan Sobhan |
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Designation |
: |
Managing Director |
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Nationality |
: |
Bangladeshi. |
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Email address |
: |
N/A |
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Other details |
: |
N/A |
|
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||
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|
|
|
|
|
||
|
Name |
: |
Mr. Sadat Sobhan |
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Designation |
: |
Director |
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Nationality |
: |
Bangladeshi. |
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Email address |
: |
N/A |
|
Other details |
: |
N/A |
|
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||
|
|
|
|
|
|
||
|
Name |
: |
Mr. Sayem Sobhan |
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Designation |
: |
Director |
|
Nationality |
: |
Bangladeshi. |
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Email address |
: |
N/A |
|
Other details |
: |
N/A |
|
|
||
|
|
|
|
|
|
||
|
Name |
: |
Mrs. Afroza Begum |
|
Designation |
: |
Director |
|
Nationality |
: |
Bangladeshi. |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
|
6. |
|
|
|
|
||
|
Name |
: |
Mr. Shafiat Sobhan |
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Designation |
: |
Director |
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Nationality |
: |
Bangladeshi. |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
MANAGEMENT
|
Name |
: |
Mr. Safwan Sobhan |
|
Job Description |
: |
Managing Director |
|
Nationality |
: |
Bangladeshi |
|
Email address |
: |
md@bg.com.bd |
|
Other details |
: |
N/A |
|
Name |
: |
Mr. M. Naseemul Hye, FCS |
|
Job Description |
: |
Senior Executive Director
& Company Secretary |
|
Nationality |
: |
Bangladeshi |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
|
Name |
: |
Mr. M. Mazedul Islam |
|
Job Description |
: |
Assistant General Manager |
|
Nationality |
: |
Bangladeshi |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
|
Name |
: |
Mr. Muhammad Manjur
Hossain |
|
Job Description |
: |
Manager (Incharge)
International Marketing & Export |
|
Nationality |
: |
Bangladeshi |
|
Email address |
: |
N/A |
|
Other details |
: |
N/A |
BUSINESS OPERATIONS
|
Nature of
Activity : |
Manufacturer |
Ö |
Trader |
|
Dealer |
|
Distributor |
Ö |
|
|
|
|||||||
|
|
Exporter |
Ö |
Importer |
Ö |
Services |
|
Others |
|
|
Range of
products: |
||
|
|
||
|
Products |
: |
Tissue Papers, Flat Paper, White Writing
Paper, Base Paper, Color Printing Paper
|
|
Production
Capacity |
: |
500,000 MT to 600,000 MT per year |
|
Last Year
Production |
: |
Do. |
Trading
Terms:
|
Purchasing
Terms: |
L/C |
Ö |
Cash |
|
Others |
|
|
|||
|
|
Credit : |
|
30 days |
|
60 days |
Ö |
90 days |
|
|
days |
|
Selling
Terms : |
L/C |
Ö |
Cash |
|
Others |
|
|
|||
|
|
Credit : |
|
30 days |
|
60 days |
Ö |
90 days |
|
|
days |
DETAILED DATA
|
Trade Reference & Related Parties |
: |
Overseas Clients |
: |
N/A |
|
||
|
Local Clients |
: |
N/A |
|
||||
|
Overseas Suppliers |
: |
N/A |
|
||||
|
Local Suppliers |
: |
N/A |
|
||||
|
Trade Markets |
: |
Exports(Country) |
: |
Srilanka, Nepal, Bhutan. |
|
||
|
Imports(Country) |
: |
Indonesia, Thailand and Korea |
|
||||
|
Brand Name |
: |
N/A |
|||||
|
Certified |
: |
ISO
14001:2004 |
|||||
|
Name of Auditors |
: |
Ahmed Zaker & Co. Chartered Accountants 45, Shaheed Syed Nazrul Islam Sarani,
(2nd Floor), Saiham Tower, Bijoynagar, Kakrail, Dhaka-1000, Bangladesh |
|||||
|
Operation Status |
: |
Active |
|||||
CAPITAL STRUCTURE
|
Authorized
Capital |
: |
BDT 5000 Million |
|
|
||
|
Paid-up
Capital |
: |
BDT 1477497750 |
|
|
||
|
No. of
Shares |
: |
147749775 |
|
|
||
|
Share
Value |
: |
BDT10.00Each |
|
|
||
|
Main
Assets |
: |
BDT 19707413738 Million |
FINANCIAL STATEMENT- DETAILED
|
Balance
Sheet : |
||
|
|
Currency |
BDT |
|
|
Denomination |
: 1 |
|
|
Financial Year Ending |
:31st March’2017 |
|
Financial Highlights |
31st March’2017 |
30th June’2016 |
|
Assets |
|
|
|
Non-Current Assets |
9,691,982,895 |
9,493,645,061 |
|
Property, Plant & Equipment, Net |
8,549,213,087 |
8,726,373,517 |
|
Intangible assets |
182,503,340 |
- |
|
Capital work-in-progress |
695,266,467 |
502,271,543 |
|
Investment |
265,000,000 |
265,000,000 |
|
Current assets |
10,015,430,843 |
9,415,203,876 |
|
Inventories |
5,642,041,582 |
5,387,029,832 |
|
Trade and other receivables |
2,022,458,842 |
1,668,706,073 |
|
Advances, deposits and prepayments |
933,950,207 |
828,701,278 |
|
Advance income tax |
439,789,466 |
378,373,534 |
|
Intercompany current account |
714,227,128 |
950,175,193 |
|
Cash and bank balances |
262,963,619 |
202,217,966 |
|
Total
assets |
19,707,413,738 |
18,908,848,937 |
|
EQUITY AND
LIABILITIES |
|
|
|
Capital and reserves |
4,907,513,480 |
4,504,853,613 |
|
Share capital |
1,477,497,750 |
1,477,497,750 |
|
Revaluation reserve |
2,164,000,189 |
2,171,846,967 |
|
Retained earnings |
1,266,015,541 |
855,508,897 |
|
Liabilities |
|
|
|
Non-current
Liability |
5,151,452,583 |
4,992,509,158 |
|
Long term borrowings |
3,589,918,718 |
3,615,249,045 |
|
Deferred tax liability |
1,329,979,683 |
1,377,260,113 |
|
Intercompany Payable |
231,554,182 |
- |
|
Current liabilities |
9,648,447,674 |
9,411,486,166 |
|
Long term borrowings-current portion |
1,453,386,922 |
1,122,530,545 |
|
Short term borrowings |
6,987,189,957 |
7,353,006,858 |
|
Trade and other payables |
852,290,707 |
851,592,785 |
|
Provision for expenses |
274,670,114 |
18,883,957 |
|
Income tax provision |
80,909,974 |
65,472,020 |
|
Total
liabilities |
14,799,900,258 |
14,403,995,324 |
|
Total equity
and liabilities |
19,707,413,738 |
18,908,848,937 |
|
Net Asset
Value Per Share |
33.22 |
30.49 |
|
Income
Statement : |
||
|
|
Currency |
:BDT |
|
|
Denomination |
: 1 |
|
|
Financial Year Ending |
: 31st Mar, 2017 |
|
Financial Highlights |
January-March, 2017 |
January-March, 2016 |
|
Revenue, Net |
2,572,871,037 |
3,061,662,292 |
|
Cost of Goods Sold |
(2,062,605,670) |
(2,523,332,148) |
|
Gross Profit |
510,265,367 |
538,330,145 |
|
Other income |
121,210 |
67,645 |
|
Administrative Expenses |
(81,403,755) |
(66,759,758) |
|
Selling & Distribution Expenses |
(53,676,990) |
(46,335,372) |
|
Finance costs |
(233,922,538) |
(289,571,758) |
|
Profit before distribution of WPP & WF |
141,383,294 |
135,730,902 |
|
Workers' profit participation & welfare fund |
(7,069,165) |
(6,860,533) |
|
Profit before tax |
134,314,129 |
128,870,369 |
|
Income tax expenses |
31,842,477 |
(1,121,744) |
|
Current tax expense |
(15,437,953) |
(9,185,190) |
|
Deferred tax expense |
47,280,431 |
8,063,446 |
|
Profit after tax |
166,156,607 |
127,748,625 |
|
Other comprehensive income |
|
|
|
Items that will not be reclassified subsequently to
profit or loss: |
- |
- |
|
Items that may be reclassified subsequently to profit
or loss |
- |
- |
|
Total Comprehensive Income for the period |
166,156,607 |
127,748,625 |
|
Earnings per share |
1.12 |
0.86 |
ASSOCIARES/SUBSIDIARIES/ RELATED PARTIES
|
Sister Concerns |
: |
Toggi World Cement Sack Limited. Bashundhara Shipping Union Lp Gas Limited Bashubdara foundation
Bashundhara Enterprise East Waest Media Group Bashundhara Steel Trading Meghna Cement Mills Ltd Bashundhara Paper Trading Freyschmidt Tissue Limited Bashundhara Tissue Limited Bashundhara Media Limited Bashundhara Gas Distribution Crystal Property Development Bashundhara L.P. Gas Limited Bashundhara Dredging Co. Ltd Bashundhara E- Media Limited Bashundhara Import Export Ltd Bashundhara Convention Center Bashundhara Television Limited East West Property Development Bashundhara Cement Trading Ltd Bashundhara Enterprise (Pvt.) Ltd. Sundarban Industrial Complex Ltd Shahjalal Newsprint Industries Ltd Bashundhara Technologies Limited Bashundhara Trading Company Ltd Bashundhara Cement Industries Ltd Bashundhara City Development Ltd. Bashundhara Oil And Gas Company Ltd. East West Property Development (Pvt.) Ltd Bashundhara International Airways Limited Bashundhara Food And Beverage industries ltd Bashundhara Communications & Networks Limited Bashundhara Fertilizer And Ctrains Industries
Limited. Bashundhara Newsprint & Duplex Board Industries
Ltd. |
|
Subsidiary |
: |
N/A |
|
Name of The Group |
: |
Bashundhara Group. |
BANKING
|
Bank Name |
: |
Janata Bank Ltd. National Bank Ltd. Standard Bank Ltd. Southeast Bank Ltd. Mercantile Bank Ltd. Social Islami Bank Ltd. |
ADVERSE DATA MONITORING
|
Dishonored
Checks |
: |
No Record Found |
|
Debt |
: |
No Record Found |
|
Litigation |
: |
Clear |
|
Performance
Defaults |
: |
No Record Found |
|
Adverse
Local Media Coverage/ Adverse Filling History |
: |
No Record Found |
SITE VISIT COMMENTARY
|
Our Representative Visited the subject company address
at 125/A, Bashundhara R/A, Road # 2, Block # A, Baridhara, Dhaka-1219,
Bangladesh. It is Situated at Residential area. |
GENERAL COMMENTS
|
SC has been in its line of business for about 24 years.
As well as its financial condition |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.39 |
|
|
1 |
INR 85.74 |
|
Euro |
1 |
INR 76.25 |
|
BDT |
1 |
INR 0.76 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
|
|
|
|
Report Prepared
by : |
SYL |
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 |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
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.