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MIRA
INFORM REPORT
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Report No. : |
488096 |
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Report Date : |
24.01.2018 |
IDENTIFICATION DETAILS
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Name : |
BOAI NKY PHARMACEUTICALS LTD. |
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Registered Office : |
No. 1888 East Wenhua Road, Bo'ai County, Jiaozuo,
Henan Province 454450 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
13.03.2003 |
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Unified Social
Credit Code : |
9141080074921334XW |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject registered business scope includes manufacturing medical
supplements, raw materials, adhesives, food additives, polyvinylpyrrolidone and
vinyl ether products/maleic anhydride polymer; exporting self-made products
and technology, importing the needed machinery equipment, parts, raw
materials and technology, excluding the items prohibited or limited by the
country. |
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No. of Employees : |
682 |
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 : |
Excellent |
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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) |
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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 & address
|
COMPANY NAME |
BOAI NKY PHARMACEUTICALS LTD. |
|
CURRENT ADDRESS/ REGISTERED
ADDRESS |
NO. 1888 EAST WENHUA ROAD, BO'AI COUNTY,
JIAOZUO, HENAN PROVINCE 454450 PR CHINA |
|
TEL. NO. |
86 (0) 391-8610680/8694499 |
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FAX NO. |
86 (0) 391-8610681 |
EXECUTIVE SUMMARY
Date of Registration : march 13, 2003
UNIFIED SOCIAL CREDIT CODE : 9141080074921334XW
LEGAL FORM : SHARES LIMITED
COMPANY
CHIEF EXECUTIVE :
fang huasheng (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 170,482,422
staff :
682
BUSINESS CATEGORY : MANUFACTURING & TRADING
REVENUE :
CNY 400,619,000 (CONSOLIDATED,
AS OF DEC. 31, 2016)
EQUITIES :
CNY 1,226,580,000 (CONSOLIDATED, AS OF DEC. 31, 2016)
WEBSITE : www.china-pvp.com
E-MAIL :
sales@china-pvp.com
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: 9141080074921334XW.
SC’s Import and Export Enterprise Code:
410074921334X
SC’s registered capital: CNY 170,482,422
SC’s paid-in capital: CNY 170,482,422
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2016-1-13 |
Registered Capital |
CNY 115,200,000 |
CNY 170,482,422 |
|
2016-5-6 |
Legal Representative |
Yang Haijiang |
Fang Huasheng |
|
-- |
Registration No./ Unified Social Credit Code |
410822100001782 |
9141080074921334XW |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of Mar. 31, 2017) |
% of Shareholding |
|
Wang Donghu |
19.58 |
|
Fang Huasheng |
9.76 |
|
Wang Jianqiang |
8.81 |
|
Yang Haijiang |
6.57 |
|
Ren Dalong 任大龙 |
3.07 |
|
Beijing Hanchuda Investment Consultant Co., Ltd. |
2.82 |
|
Zeng Libo |
2.27 |
|
Qiu Yannan |
1.43 |
|
Xizang Jinhexin Commercial & Trade Co., Ltd. |
1.31 |
|
Shanghai Shuangliang Equity Investment Co., Ltd. |
1.27 |
|
Other Shareholders |
43.11 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Fang Huasheng |
|
Vice Chairman |
Yang Haijiang |
|
Wang Jianqiang |
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General Manager |
Wang Donghu |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 300109.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(As of Mar. 31, 2017)
-------------------------
Wang Donghu 19.58
Fang Huasheng 9.76
Wang Jianqiang 8.81
Yang Haijiang 6.57
Ren Dalong 3.07
Beijing Hanchuda Investment Consultant Co., Ltd. 2.82
Zeng Libo 2.27
Qiu Yannan 1.43
Xizang Jinhexin Commercial & Trade Co., Ltd. 1.31
Shanghai Shuangliang Equity Investment Co., Ltd. 1.27
Other Shareholders 43.11
Beijing Hanchuda Investment Consultant Co., Ltd.
------------------------------------------------------------------
Date of Registration: July 30, 2001
Registration No.: 110105003138481
Chief Executive: Fang Huasheng
Registered Capital: CNY 3,000,000
Xizang Jinhexin Commercial & Trade Co., Ltd.
--------------------------------------------------------------
Date of Registration: July 16, 2012
Unified Social Credit Code: 91540195741057901U
Chief Executive: Yuan Bosheng
Registered Capital: CNY 6,000,000
Shanghai Shuangliang Equity Investment Co., Ltd.
-------------------------------------------------------------------
Date of Registration: November 18, 2009
Unified Social Credit Code: 91310000697254683A
Chief Executive: Liao Wenbin
Registered Capital: CNY 100,000,000
MANAGEMENT
Fang Huasheng,
Legal Representative and Chairman
--------------------------------------------------------------------------------
Gender: M
Age: 55
Qualification: University
Working experience (s):
At present, working in SC as legal representative and chairman, also
working in Boai NKY (Beijing) Medical Technology Development Co., Ltd. as legal
representative
Yang Haijiang,
Vice Chairman
----------------------------------------------------
Gender: M
Age: 64
Qualification: University
Working experience (s):
Before, worked in SC as chairman
At present, working in SC as vice chairman
Wang Jianqiang,
Vice Chairman
------------------------------------------------------
Gender: M
Age: 51
Qualification: University
Working experience (s):
At present, working in SC as vice chairman, also working in Tianjin
Yaruizi Pharmaceutical Technology Co., Ltd. and Baoai NKY Pharmaceutical
Chemical Equipment Co., Ltd. as legal representative
Wang Donghu, General
Manager
-------------------------------------------------------
Gender: M
Age: 63
Qualification: University
Working experience (s):
At present, working in SC as general manager
BUSINESS OPERATION
SC’s registered business scope includes manufacturing medical
supplements, raw materials, adhesives, food additives, polyvinylpyrrolidone and
vinyl ether products/maleic anhydride polymer; exporting self-made products and
technology, importing the needed machinery equipment, parts, raw materials and
technology, excluding the items prohibited or limited by the country.
SC is mainly engaged in manufacturing and selling polyvinylpyrrolidone
series products.
Brand: NKY
SC’s businesses mainly include:
povidone,KoVidoneTMK－PVP K Series
Povidone,KoVidoneTM-I－Povidone Iodine
crospovidone,PolyKoVidoneTM－Crospovidone Type
A & Type B
Copovidone,KoVidone VA64_Copovidone
2-Pyrrolidone
PVP/H2O2 complexes
PVM/MA Copolymer,OraRezTMW
PVM/MA Copolymer,OraRezTMAN-
OraRez® MS
SC sources its materials 60% from domestic market, and 40% from overseas
market. SC sells 75% of its products in domestic market, and 25% to overseas
market, mainly North America, European countries, Latin America, etc.
The buying terms of SC include Check, T/T, L/C and Credit of 30-60 days.
The payment terms of SC include T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
Wushenqi New Type Chemical Co., Ltd.
Unid Jiangsu Chemical Co., Ltd.
Friends Union Enterprises (Tianjin) Ltd.
*Major Suppliers:
=============
Poly China Development Limited
Nanjing Chemical Material Corp.
Friends Union Enterprises (Tianjin) Ltd.
Staff &
Office:
--------------------------
SC is known to have approx. 682
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
have the following subsidiaries at present:
Boai NKY (Beijing) Medical Technology Development Co., Ltd.
---------------------------------------------------------
Date of Registration: May 14, 2015
Unified Social Credit Code: 911101083355967582
Chief Executive: Fang Huasheng方华生
Registered Capital: CNY 30,000,000
Tianjin Yaruizi Pharmaceutical Technology Co., Ltd.
---------------------------------------
Date of Registration: December 16, 2014
Unified Social Credit Code: 911201163007138629
Chief Executive: Wang Jianqiang
Registered Capital: CNY 10,000,000
Baoai NKY Pharmaceutical Chemical Equipment Co., Ltd.
---------------------------------------------
Date of Registration: November 28, 2014
Unified Social Credit Code: 91410822317670942A
Chief Executive: Wang Jianqiang
Registered Capital: CNY 10,000,000
Changsha Sanji Biotechnology Co., Ltd.
------------------------------------
Date of Registration: August 13, 2010
Unified Social Credit Code: 91430100559533799H
Chief Executive: Wang Xinmeng
Registered Capital: CNY 50,000,000
Genergy Bio-Technology (Shanghai) Co., Ltd.
------------------------------------------
Date of Registration: February 2, 2010
Unified Social Credit Code: 91310112550087892X
Chief Executive: Zou Xiaowen
Registered Capital: CNY 30,000,000
Wuhan Heer Medical Technology Development Co., Ltd.
------------------------------------------
Date of Registration: May 25, 2006
Unified Social Credit Code: 91420100789303841M
Chief Executive: Ren Dalong
Registered Capital: CNY 30,000,000
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 and our debt collection record concerning
SC.
Trade payment experience: SC’s suppliers declined to make any
comments.
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:
China Construction Bank Boai Sub-branch
AC#: 41001545510059888888
Industrial and Commercial Bank of China Boai Zhongshan Road Sub-branch
AC#: 1709123829251851893
FINANCIALS
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2015 |
As of Dec. 31,
2016 |
|
209,296 |
198,901 |
|
|
Accounts receivable |
64,456 |
76,315 |
|
Notes receivable |
2,018 |
6,346 |
|
Advances to suppliers |
16,526 |
13,895 |
|
Interest receivable |
0 |
0 |
|
Other receivable |
3,101 |
2,136 |
|
Inventory |
86,627 |
71,083 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
1,726 |
42,138 |
|
|
------------------ |
------------------ |
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Current assets |
383,750 |
410,814 |
|
Long-term investments |
203 |
15,699 |
|
Real estate investment |
0 |
0 |
|
Fixed assets |
289,160 |
311,156 |
|
Construction in progress |
49,156 |
48,097 |
|
Intangible assets |
68,938 |
71,115 |
|
Goodwill |
427,997 |
441,207 |
|
Long-term deferred expense |
725 |
1,157 |
|
Deferred income tax assets |
4,935 |
4,310 |
|
Other non-current assets |
11,110 |
6,346 |
|
|
------------------ |
------------------ |
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Total assets |
1,235,974 |
1,309,901 |
|
|
============= |
============= |
|
Short-term loans |
0 |
0 |
|
Notes payable |
0 |
1,600 |
|
Accounts payable |
20,568 |
27,671 |
|
Payroll payable |
2,663 |
2,964 |
|
Taxes payable |
4,208 |
8,092 |
|
Advances from clients |
4,309 |
7,599 |
|
Other payable |
26,049 |
9,760 |
|
Non-current liabilities due within one year |
0 |
0 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
57,797 |
57,686 |
|
Non-current liabilities |
15,312 |
25,635 |
|
|
------------------ |
------------------ |
|
Total liabilities |
73,109 |
83,321 |
|
Equities |
1,162,865 |
1,226,580 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
1,235,974 |
1,309,901 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2015 |
As of Dec. 31,
2016 |
|
Revenue |
290,640 |
400,619 |
|
Cost of sales |
167,719 |
221,485 |
|
Business Taxes and Surcharges |
2,344 |
5,444 |
|
Sales expense |
16,308 |
25,118 |
|
Management expense |
38,492 |
25,118 |
|
Finance expense |
-1,269 |
51,596 |
|
Asset impairment loss |
1,027 |
-3,421 |
|
Investment income |
55 |
-1,646 |
|
Non-operating income |
1,222 |
2,937 |
|
Non-operating expense |
258 |
893 |
|
Profit before tax |
67,036 |
94,545 |
|
Less: profit tax |
10,050 |
14,322 |
|
Profits |
56,986 |
80,223 |
Important Ratios
=============
|
|
As of Dec. 31,
2015 |
As of Dec. 31,
2016 |
|
*Current ratio |
6.64 |
7.12 |
|
*Quick ratio |
5.14 |
5.89 |
|
*Liabilities to assets |
0.06 |
0.06 |
|
*Net profit margin (%) |
19.61 |
20.02 |
|
*Return on total assets (%) |
4.61 |
6.12 |
|
*Inventory / Revenue ×365 |
109 days |
65 days |
|
*Accounts receivable / Revenue ×365 |
81 days |
70 days |
|
*Revenue / Total assets |
0.24 |
0.31 |
|
*Cost of sales / Revenue |
0.58 |
0.55 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is average.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fairly good level.
SC’s quick ratio is maintained in a fairly good level.
The inventory of SC appears average.
The accounts receivable of SC average.
The short-term loans of SC appear average.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.77 |
|
|
1 |
INR 89.20 |
|
Euro |
1 |
INR 78.22 |
|
CNY |
1 |
INR 9.99 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
KET |
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.