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MIRA
INFORM REPORT
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Report No. : |
498974 |
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Report Date : |
20.03.2018 |
IDENTIFICATION DETAILS
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Name : |
FOSHAN YI LONG ECONOMIC AND TRADE CO., LTD. |
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Registered Office : |
Room W206, 2/F, Research And Manufacture
Building, No. 235 Lianjiang 1st Road, Chancheng District, Foshan, Guangdong
Province 528000 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2017 |
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Date of Incorporation : |
13.01.2006 |
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Com. Reg. No.: |
914406047848542494 |
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Legal Form : |
Limited Liabilities Company |
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Line of Business : |
Subject registered business scope includes selling machinery &
components, hardware, steel products, metal materials, rubber & plastic
products, ceramic products, building materials, furniture, sanitary ware,
insulation materials, textiles, groceries, electric appliances &
components, ceramic & chemical materials (excluding hazardous
chemicals ), diamond products, grinding aid and materials; importing and
exporting commodities & technology (excluding the
projects prohibited by laws and administrative regulations, the projects
restricted by laws, administrative laws and regulations have to obtain
permits before operating ). |
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No. of Employees : |
13 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
B |
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Credit Rating |
Explanation |
Rating Comments |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 (30.09.2017) |
Current Rating (31.12.2017) |
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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 allowed resumption of a gradual liberalization. In 2015, the People’s
Bank of China announced it would continue to carefully push for full
convertibility of the renminbi (RMB) after the currency was accepted as part of
the IMF’s special drawing rights basket. After engaging in one-way, large-scale
intervention to resist appreciation of the RMB for a decade, China’s 2016
intervention in foreign exchange markets has sought to prevent a rapid RMB
depreciation that would have negative consequences for the United States,
China, and the global economy.
China’s economic growth has slowed since 2011. The Chinese Government
faces numerous economic challenges including: (a) reducing its high domestic
savings rate and correspondingly low domestic household consumption; (b)
servicing its high corporate debt burdens to maintain financial stability; (c)
facilitating higher-wage job opportunities for the aspiring middle class,
including rural migrants and college graduates, while maintaining
competitiveness; (d) dampening speculative investment in the real estate
sector; (e) reducing industrial overcapacity; and (f) raising productivity
growth rates through the more efficient allocation of capital. 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 only marginal progress toward these rebalancing goals.
Under President XI Jinping, Beijing has signaled its understanding that China's
long-term economic health depends on giving the market a more decisive role in
allocating resources, but has moved slowly on market-oriented reforms because
of potential negative consequences for stability and short-term economic
growth. He has also increased state-control over key sectors and Party control
over state-owned enterprises. 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.
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Source
: CIA |
Company name & address
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COMPANY NAME |
FOSHAN YI LONG ECONOMIC AND TRADE CO., LTD. |
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CURRENT ADDRESS/ REGISTERED
ADDRESS |
ROOM W206, 2/F, RESEARCH AND MANUFACTURE
BUILDING, NO. 235 LIANJIANG 1ST ROAD, CHANCHENG DISTRICT, FOSHAN, GUANGDONG
PROVINCE 528000 PR CHINA |
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TEL. NO. |
86 (0) 757-83960922/83872738 |
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FAX NO. |
86 (0) 757-83839935/83872700 |
EXECUTIVE SUMMARY
Date of Registration : january 13, 2006
REGISTRATION NO. : 914406047848542494
LEGAL FORM : LIMITED LIABILITIES COMPANY
CHIEF EXECUTIVE : HUANG GUOQIANG (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 1,000,000
staff : 13
BUSINESS CATEGORY : trading
REVENUE : CNY 25,138,000 (FROM JAN. 1, 2017
TO JUN. 30, 2017)
EQUITIES : CNY 2,232,000 (AS OF JUN. 30,
2017)
WEBSITE : www.yilong-fs.com
E-MAIL : sales@foshanaosibo.com
PAYMENT : slow but correct
MARKET CONDITION :
average
FINANCIAL CONDITION : FAIRly stable
OPERATIONAL TREND : ORDINARY
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 a limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under Unified Social Credit
Code: 914406047848542494.
SC’s Import and Export Enterprise Code:
4400784854249
SC’s registered capital: cny 1,000,000
SC’s paid-in capital: cny 1,000,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2007-07-25 |
Registration No. |
4406042202005 |
440602000000971 |
|
2008-06-04 |
Registered Capital |
CNY 520,000 |
cny 1,000,000 |
|
2010-05 |
Company Name |
Foshan Kexinda Yilong Economic & Trade
Co., Ltd. |
Foshan Yi Long Economic & Trade Co., Ltd. |
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2016-10-12 |
Registration No./ Unified Social Credit Code |
440602000000971 |
914406047848542494 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Wu Huifen |
8 |
|
He Yongbiao |
5 |
|
Li Xianggang |
21 |
|
Chen Shuling |
2 |
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Huang Guoquan |
10 |
|
Huang Guoqiang |
31 |
|
Luo Xiaomu |
23 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman and General Manager |
Huang Guoqiang |
|
Director |
Li Xianggang |
|
Luo Xiaomu |
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Supervisor |
Huang Guoquan |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Wu Huifen 8
He Yongbiao 5
Li Xianggang 21
Chen Shuling 2
Huang Guoquan 10
Huang Guoqiang 31
Luo Xiaomu 23
MANAGEMENT
Huang Guoqiang, Legal Representative, Chairman and General
Manager
----------------------------------------------------------------------------------------------------------
Gender: M
Nationality: China
Age: 60
ID# 440601195707283416
Working experience (s):
At present, working in SC as legal representative, chairman and general
manager
Li Xianggang,
Director
------------------------------------------
Gender: M
Nationality: China
Age: 56
ID# 440601196101243414
Working experience (s):
At present, as director of SC
Luo Xiaomu,
Director
----------------------------------------
Gender: M
Nationality: China
Age: 49
ID# 522525680810821
Working experience (s):
At present, as director of SC
Huang Guoquan,
Supervisor
-------------------------------------------------
Gender: M
Nationality: China
Age: 55
ID# 440601196204173439
Working experience (s):
At present, as supervisor of SC
BUSINESS OPERATION
SC’s registered business scope includes selling machinery &
components, hardware, steel products, metal materials, rubber & plastic
products, ceramic products, building materials, furniture, sanitary ware,
insulation materials, textiles, groceries, electric appliances &
components, ceramic & chemical materials (excluding hazardous
chemicals ), diamond products, grinding aid and materials; importing and exporting
commodities & technology (excluding the projects prohibited by laws
and administrative regulations, the projects restricted by laws, administrative
laws and regulations have to obtain permits before operating ).
SC is mainly engaged in selling ceramic & chemical materials.
SC’s products mainly include: ceramic tiles, porcelain tiles, modulation
pigment, etc.
SC sources its products 80% from domestic market, and 20% from overseas
market, mainly European and Southeast Asian countries. SC sells its products
60% in domestic market, and 40% to overseas market.
The buying terms of SC include Check, T/T, L/C 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:
==============
Manufacturas Vitromex SA De
Proyecta Interiorismo SA De Cv
Century Tiles Limited
Staff &
Office:
--------------------------
SC is known to have approx. 13
staff at present.
SC rents an area as its operating office, but the detailed information
is unknown.
RELATED COMPANY
According to the
website (http://www.kexinda.com)
Guangdong Kexinda Technology Co., Ltd.
Deke Mechanical and Electrical Equipment Co., Ltd.
Aosibo Ceramic Technology Co., Ltd.
Ditiantai Diamond and Abrasive Tools 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 Foshan Lanpu Sub-branch
AC#: 649657748463
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2014 |
As of Dec. 31,
2015 |
|
1,878 |
3,186 |
|
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Notes receivable |
0 |
0 |
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Accounts receivable |
6,210 |
8,866 |
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Advances to suppliers |
4,753 |
3,819 |
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Other receivable |
7,433 |
13,664 |
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Export tax refund receivable |
0 |
0 |
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Inventory |
0 |
0 |
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Prepaid expenses |
0 |
0 |
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Other current assets |
0 |
0 |
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------------------ |
------------------ |
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Current assets |
20,274 |
29,535 |
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Fixed assets |
75 |
62 |
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Long-term prepaid expenses |
0 |
0 |
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Deferred income tax assets |
0 |
0 |
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Other non-current assets |
0 |
0 |
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------------------ |
------------------ |
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Total assets |
20,349 |
29,597 |
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|
============= |
============= |
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Short-term loans |
0 |
500 |
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Notes payable |
0 |
0 |
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Accounts payable |
6,467 |
12,866 |
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Wages payable |
0 |
0 |
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Taxes payable |
16 |
0 |
|
Advances from clients |
11,762 |
14,051 |
|
Other payable |
21 |
24 |
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Other current liabilities |
0 |
0 |
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------------------ |
------------------ |
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Current liabilities |
18,266 |
27,441 |
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Non-current liabilities |
0 |
0 |
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|
------------------ |
------------------ |
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Total liabilities |
18,266 |
27,441 |
|
Equities |
2,083 |
2,156 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
20,349 |
29,597 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2014 |
As of Dec. 31,
2015 |
|
Revenue |
53,213 |
68,046 |
|
Cost of sales |
49,815 |
65,552 |
|
Sales expense |
1,808 |
1,560 |
|
Management expense |
751 |
859 |
|
Finance expense |
-332 |
-46 |
|
Profit before tax |
251 |
133 |
|
Less: profit tax |
63 |
20 |
|
188 |
113 |
Financial Summary
|
Unit: CNY’000 |
As of Dec. 31,
2016 |
As of Jun. 30,
2017 |
|
Total assets |
19,016 |
21,224 |
|
|
------------- |
------------- |
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Total liabilities |
16,765 |
18,992 |
|
Equities |
2,251 |
2,232 |
|
|
------------- |
------------- |
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As of Dec. 31,
2016 |
From Jan. 1,
2017 to Jun. 30, 2017 |
|
Revenue |
51,513 |
25,138 |
|
Profit before tax |
123 |
-19 |
|
Less: profit tax |
12 |
0 |
|
Profits |
111 |
-19 |
Important Ratios
=============
|
|
As of Dec. 31,
2014 |
As of Dec. 31,
2015 |
As of Dec. 31,
2016 |
As of Jun. 30,
2017 |
|
*Current ratio |
1.11 |
1.08 |
-- |
-- |
|
*Quick ratio |
1.11 |
1.08 |
-- |
-- |
|
*Liabilities to assets |
0.90 |
0.93 |
0.88 |
0.89 |
|
*Net profit margin (%) |
0.35 |
0.17 |
0.22 |
-0.08 |
|
*Return on total assets (%) |
0.92 |
0.38 |
0.58 |
-0.09 |
|
*Inventory / Revenue ×365 |
-- |
-- |
-- |
-- |
|
*Accounts receivable/ Revenue ×365 |
43 days |
48 days |
-- |
-- |
|
* Revenue/Total assets |
2.62 |
2.30 |
2.71 |
1.18 |
|
* Cost of sales / Revenue |
0.94 |
0.96 |
-- |
-- |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears average in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is fairy high, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fairly good level.
SC has no inventory.
The accounts receivable of SC appears average.
SC’s short-term loans are in an average level.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIR
The debt ratio of SC is fairly high.
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered small-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 65.04 |
|
|
1 |
INR 90.56 |
|
Euro |
1 |
INR 79.78 |
|
CNY |
1 |
INR 10.30 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
: |
VIV |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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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.