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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

510099

Report Date :

25.05.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

HANOI TRADE CORP

 

 

Formerly Known As :

SOUTH HANOI PRODUCTION SERVICE & EXPORT - IMPORT CO, THE [08.02.1993]

 

 

Registered Office :

38-40 Le Thai To St, Hoan Kiem Dist, Hanoi

 

 

Country :

Vietnam

 

 

Financials (as on) :

December 2017

 

 

Date of Incorporation :

16.05.1998

 

 

Com. Reg. No.:

0100101273

 

 

Legal Form :

Corporation

 

 

Line of Business :

Retail Sale via Stalls and Markets of Other Goods

 

 

No. of Employees :

8300 [2018]

 

 

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 :

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

 

Country Name

                Previous Rating               

(30.09.2017)

Current Rating

(31.12.2017)

Vietnam

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

 


 

VIETNAM - ECONOMIC OVERVIEW

 

Vietnam is a densely populated developing country that has been transitioning since 1986 from the rigidities of a centrally planned, highly agrarian economy to a more industrial and market based economy, and it has raised incomes substantially. Vietnam exceeded its 2017 GDP growth target of 6.7% with growth of 6.8%, primarily due to unexpected increases in domestic demand, and strong manufacturing exports.

 

Vietnam has a young population, stable political system, commitment to sustainable growth, relatively low inflation, stable currency, strong FDI inflows, and strong manufacturing sector. In addition, the country is committed to continuing its global economic integration. Vietnam joined the WTO in January 2007 and concluded several free trade agreements in 2015-16, including the EU-Vietnam Free Trade Agreement (which the EU has not yet ratified), the Korean Free Trade Agreement, and the Eurasian Economic Union Free Trade Agreement. In 2017, Vietnam successfully chaired the Asia-Pacific Economic Cooperation (APEC) Conference with its key priorities including inclusive growth, innovation, strengthening small and medium enterprises, food security, and climate change. Seeking to diversify its opportunities, Vietnam also signed the Comprehensive and Progressive Agreement for the Transpacific Partnership in 2018 and continued to pursue the Regional Comprehensive Economic Partnership.

 

To continue its trajectory of strong economic growth, the government acknowledges the need to spark a second wave’ of reforms, including reforming state-owned-enterprises, reducing red tape, increasing business sector transparency, reducing the level of non-performing loans in the banking sector, and increasing financial sector transparency. Vietnam’s public debt to GDP ratio is nearing the government mandated ceiling of 65%.

 

In 2016, Vietnam cancelled its civilian nuclear energy development program, citing public concerns about safety and the high cost of the program; it faces growing pressure on energy infrastructure. Overall, the country’s infrastructure fails to meet the needs of an expanding middle class. Vietnam has demonstrated a commitment to sustainable growth over the last several years, but despite the recent speed-up in economic growth the government remains cautious about the risk of external shocks.

 

Source : CIA

 

 


 

Company Summary

 

Business Name

HANOI TRADE CORP

Country

VIET NAM

Company Registration Number

0100101273

Main Activity Code

4789

Main Activity Description

Retail sale via stalls and markets of other goods

Company Status

Normal (Active)

Latest Turnover Figure

-

Latest Shareholder Equity Figure

2.381.592.000.000

 

 

Basic Information

 

Business Name

HANOI TRADE CORP

Registered Company Name

HANOI TRADE CORP

Company Registration Number

0100101273

Country

VIET NAM

VAT Registration Number

0100101273

VAT Registration Date

1998-05-16

Date of Company Registration

2014-02-28

Date of Starting Operations

2014-02-28

Commercial Court

Legal Form

Corporation

Type of Ownership

Registered ownership by Subject Business Entity

Company Status

Normal (Active)

Principal Activity Code

Principal Activity Description

Contact Telephone Number

[+84] 24-39285929, [+84] 24-38267984

 

 

Main Address

 

Address

Country

Telephone

38-40 Le Thai To St, Hoan Kiem Dist, Hanoi

VIET NAM

[+84] 24-39285929, [+84] 24-

38267984

 

 

Other Address

 

No other addresses for this company.

 

 

Previous Address

 

Le Chi Commune, Gia Lam, Hanoi Viet NAM

 

 

Activities

 

Activity Code      Activity Description

4789                    Retail sale via stalls and markets of other goods

 

 

Email Addresses

 

vanphong@haprogroup.vn

hapro@haprogroup.vn

doingoai@haprogroup.vn

 

 

Web Pages

 

http://www.haprogroup.vn

 

 

Previous Names

 

Previous Name

Date Changed from Previous Name

SOUTH HANOI PRODUCTION SERVICE & EXPORT - IMPORT CO, THE

1993-02-08

HANOI TRADE CORP

2004-10-15

 

 

Employee Information

 

Date Reported  Number of Employees

2018                               8300

 

 

Banker Information

 

Banker Name

Banker Address

Phone Number

JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM

Hanoi

 

 

 

Advisors Information

 

No advisor information for this company.

 

 

Miscellaneous Information

 

Fax Number

[+84] 24-39288407; [+84] 24-38267983

Export Countries

Africa; Asia / Pacific, Europe, Middle-East, North America, China, USA

Import Countries

Asia / Pacific, Europe, North America, Australia, China, France; Germany; Indonesia; Japan; Korea, South (Republic of Korea); Malaysia; New Zealand; Singapore; Taiwan; USA.

Additional Business Information

Core Business: The primary business focus of HANOI TRADE CORP is Manufacturing - Finished products. Key products include : Abattoirs; Agricultural products; Alcoholic beverages; Animal feed; Art goods; Canned foods; Cashew nuts; Ceramic ware; Crystal glasswares; Distilled beverages; Farm products; Foodstuffs; Furniture; Garments; Giftware products; Handbags; Handicrafts; Ice; Ice cream; Instant noodle; Machines; Metal products; Milk; Processed food; Purified drinking water; Sausage; Vodka; Wines; Wood chip; An integral part of the core business includes: Distribution; Supplementary Business: In addition to the core business, HANOI TRADE CORP also is engaged in the following areas of business: Exporting; Exporting - Finished products; Importing; Importing - Raw materials; Service; Specialized professional services, including: Restaurants.

Additional Payment Information

Selling Type: Terms Local: Cash on delivery (COD); Credit - Unsecured 30~60 days. Export: Telegraphic Transfer (T/T) - Received at time of transaction; Letter of Credit (At-sight). Purchasing Type: Terms Import: Letter of Credit (At-sight); Telegraphic Transfer (T/T) - Executed at time of transaction. Local: Credit - Unsecured 30~60 days; Cash on delivery (COD).

Additional Financial Information

Financial Statements were prepared as at 31.12.17, 31.12.16 and 31.12.15. Based on the corporate laws of Vietnam, legal entities which are a Government-owned Enterprise are not required to make public disclosure of their annual financials. Although basic financials were obtained for reference.

Number of Employees at Address

8300

Number of Employees at Group

Number of Employees at Factory

 

 

Additional Miscellaneous Information

 

Primary Business Activity

Manufacturer

Key Industry

Consumer Products

Registered Legal Address

38-40 Le Thai To St, Hoan Kiem Dist, Hanoi

Issuing Authority

DEPARTMENT OF PLANNING & INVESTMENT – Hanoi

Legal Form Category

Government-owned Enterprise

Legal Form Abbreviation

CORP

Operational Status of Business

Normal

Capital

US$ 100,926,284

Note

Legal status of the English corporate name: The English name of the Subject Business Entity (SBE) is a randomly selected translation / transliteration made by the owners of the SBE. It is not a registered English corporate name, but simply a translation / transliteration of the local language name. In Vietnam, when changes occur in the statutory records of an existing company, a new business license number is issued which links the new changes to a new license number. Such changes have occurred with the Subject Business Entity. Accordingly, there are two different "Dates of Registration", one being the original Date of Registration, and the other being the most recent Date of issuance of the new License. Details of the various previous License dates (if available) and the corresponding License numbers, are listed in PREVIOUS BUSINESS LICENSE/S below.

Tax Issuing Authority

MINISTRY OF FINANCE

Acronym

GTGT / VAT

Previous Business License/S

License Date: License No. 8 Feb, 1993: 105814; 11 Aug, 2004: 125/2004/QD UBND; 15 Oct, 2004:

0106000347.

Domestic Sales and Purchases (Annual Domestic Sales: 40%; International Sales (Export): 60%; (Annual Purchases Analysis: Percentage): Local

Sales Analysis: Percentage)      Purchases: 30%; Imports: 70%.

Reputation

Reference checking for the purpose of establishing HANOI TRADE CORP's reputation within the respective industry failed to reveal any adverse information.

Nega Scan Adverse Data Monitoring

Dishonored checks, Debt, Civil litigation, Performance defaults, Adverse local media coverage / adverse filing history: No Record Found.

Bank Details

 

Bank Name : JOINT STOCK COMMERCIAL BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM; Global

Identifier: 32400483; Branch: HA THANH; SWIFT Code: BIDVVNVX; Bank Name: JOINT STOCK COMMERCIAL BANK FOR INVESTMENT & DEVELOPMENT OF VIETNAM; Global Identifier: 32400483; Branch: JOINT STOCK COMMERCIAL BANK FOR INVESTMENT AND DEVELOPMENT OF VIETNAM - HANOI;

Branch Address: Hanoi; SWIFT Code: BIDVVNVX; Bank Name: TIEN PHONG COMMERCIAL JOINT STOCK BANK; Global Identifier: P1088722; SWIFT Code: This bank does not have a SWIFT Code; Bank Name: VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY & TRADE; Global Identifier: 32404058;

Branch: VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY; Branch Address: Chuong Duong; SWIFT Code: ICBVVNVX; Bank Name: VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY & TRADE; Global Identifier: 32404058; Branch: VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY

AND TRADE - HANOI; Branch Address: Hanoi; SWIFT Code: ICBVVNVX.

Local Branches and Management

Branch: HANOI TRADE CORP - MY HAO DIST, HUNG YEN; Branch Address: Trai Village Di Su Commune, My Hao Dist, Hung Yen; Branch: HANOI TRADE CORP - LAI VUNG, DONG THAP; Branch Address: Group 10 Tan Thuan B Hamlet Tan Duong Commune, Lai Vung, Dong Thap; Branch: HANOI TRADE CORP - DISTRICT 1, HO CHI MINH; Branch Address: 77-79 Pho Duc Chinh St Nguyen Thai Binh Ward, District 1, Ho Chi Minh; Branch: HANOI TRADE CORP - THANH XUAN, HANOI; Branch Address: Thuong Dinh St, Thanh Xuan, Hanoi; Branch : HANOI TRADE CORP - DONG DA, HANOI; Branch Address: 11B Cat Linh, Dong Da, Hanoi; Branch: HANOI TRADE CORP - DONG ANH, HANOI; Branch Address: Group 47 Dong Anh Town, Dong Anh, Hanoi; Branch: HANOI TRADE CORP - BA DINH, HANOI; Branch Address: C4 Giang Vo, Ba Dinh, Hanoi; Branch: HANOI TRADE CORP - DONG ANH, HANOI; Branch Address: Hai Boi, Dong Anh, Hanoi; Branch: HANOI TRADE CORP - HOANG MAI DIST, HANOI; Branch Address: Den Lu, Hoang Mai Dist, Hanoi.

Real Estate Ownership

Property Name: HANOI TRADE CORP - DONG DA, HANOI; Type of Property: Office & Administration; Address: 11B Cat Linh St, Dong Da, Hanoi; Office Size: 5,000 Square meters.

 

 

Primary Products

 

Products / Materials / Services Description

Activity

Abattoirs

Manufacturing, Exporting

Agricultural products

Manufacturing, Exporting

Alcoholic beverages

Manufacturing, Exporting

Animal feed

Manufacturing, Exporting

Art goods

Manufacturing, Exporting

 

 

Financial Year

2017-12

2016-12

2015-12

Number of Weeks

52

52

52

Currency

VND

VND

VND

Consolidated Accounts

Yes

Yes

Yes

 

 

Profit and Loss

 

Revenue

3.984.317.000.000

4.248.481.000.000

4.711.450.000.000

Operating Costs

3.546.121.000.000

3.868.559.000.000

4.111.438.000.000

Operating Profit

438.196.000.000

379.922.000.000

600.012.000.000

Wages & Salaries

-

-

-

Pension Costs

-

-

-

Depreciation

-

-

-

Amortisation

-

-

-

Financial Income

85.698.000.000

294.639.000.000

218.835.000.000

Financial Expenses

75.390.000.000

98.575.000.000

213.798.000.000

Extraordinary Income

7.910.000.000

51.870.000.000

15.916.000.000

Extraordinary Costs

415.574.000.000

565.127.000.000

585.552.000.000

Profit before Tax

40.840.000.000

62.729.000.000

35.413.000.000

Tax

4.439.000.000

15.512.000.000

13.422.000.000

Profit after Tax

36.401.000.000

47.217.000.000

21.991.000.000

Dividends

-

-

-

Minority Interests

-

-

-

Other Appropriations

-

-

-

Retained Profit

36.401.000.000

47.217.000.000

21.991.000.000

 

 

Balance Sheet

 

Land & Buildings

0

0

0

Plant & Machinery

0

0

0

Other Tangible Assets

0

0

0

Total Tangible Assets

748.158.000.000

624.854.000.000

829.247.000.000

Goodwill

0

0

0

Other Intangible Assets

0

0

0

Total Intangible Assets

80.230.000.000

39.024.000.000

70.828.000.000

Investments

350.749.000.000

330.047.000.000

365.116.000.000

Loans to Group

0

0

0

Other Loans

0

0

0

Miscellaneous Fixed Assets

1.048.322.000.000

1.351.997.000.000

1.224.991.000.000

Total Other Fixed Assets

1.399.071.000.000

1.682.044.000.000

1.590.107.000.000

Total Fixed Assets

2.227.459.000.000

2.345.922.000.000

2.490.182.000.000

Raw Materials

0

0

0

Work in Progress

0

0

0

Finished Goods

0

0

0

Other Inventories

0

0

0

Total Inventories

177.289.000.000

170.332.000.000

246.041.000.000

Trade Receivables

1.278.537.000.000

1.240.670.000.000

1.602.568.000.000

Group Receivables

0

0

0

Receivables Due after 1 year

0

0

0

Miscellaneous Receivables

132.434.000.000

271.872.000.000

178.758.000.000

Total Receivables

1.410.971.000.000

1.512.542.000.000

1.781.326.000.000

Cash

411.915.000.000

512.986.000.000

516.058.000.000

Other Current Assets

0

0

0

Total Current Assets

2.000.175.000.000

2.195.860.000.000

2.543.425.000.000

Total Assets

4.227.634.000.000

4.541.782.000.000

5.033.607.000.000

Trade Payables

141.647.000.000

190.170.000.000

177.977.000.000

Bank Liabilities

0

0

0

Other Loans or Finance

1.080.263.000.000

1.084.782.000.000

1.202.791.000.000

Group Payables

0

0

0

Miscellaneous Liabilities

275.897.000.000

502.439.000.000

780.870.000.000

Total Current Liabilities

1.497.807.000.000

1.777.391.000.000

2.161.638.000.000

Trade Payables After 1 Year

0

0

0

Bank Liabilities After 1 Year

0

0

0

Other Loans or Finance due after 1 year

37.039.000.000

162.820.000.000

210.666.000.000

Group Payables After 1 Year

0

0

0

Miscellaneous Liabilities Due After 1 Year

311.196.000.000

428.525.000.000

532.600.000.000

Total Long Term Liabilities

348.235.000.000

591.345.000.000

743.266.000.000

Total Liabilities

1.846.042.000.000

2.368.736.000.000

2.904.904.000.000

Called Up Share Capital

1.708.564.000.000

1.800.180.000.000

1.808.213.000.000

Share Premium

0

0

0

Revenue Reserves

-14.981.000.000

1.324.000.000

-31.903.000.000

Other Reserves

688.009.000.000

371.542.000.000

352.393.000.000

Total Shareholders Equity

2.381.592.000.000

2.173.046.000.000

2.128.703.000.000

 

 

Other Financials

 

Contingent Liabilities

Working Capital

502.368.000.000

418.469.000.000

381.787.000.000

Net Worth

2.301.362.000.000

2.134.022.000.000

2.057.875.000.000

 

 

Ratios

 

Pre Tax Profit Margin

1.03

1.48

0.75

Return On Capital Employed

1.5

2.27

1.23

Return On Total Assets Employed

0.97

1.38

0.7

Return On Net Assets Employed

1.71

2.89

1.66

Sales / Net Working Capital

7.93

10.15

12.34

Stock Turnover Ratio

4.45

4.01

5.22

Debtor Days

117.13

106.59

124.15

Creditor Days

12.98

16.34

13.79

Current Ratio

1.34

1.24

1.18

Liquidity Ratio Or Acid Test

1.22

1.14

1.06

Current Debt Ratio

0.63

0.82

1.02

Gearing

Equity In Percentage

57.42

48.26

42.89

Total Debt Ratio

0.78

1.09

1.36

 

 

Additional Financials

 

Gross Profit

 

 

Current Directors

 

Name

Gender

Position

 

Vu Thanh Son

Male

Managing Director

 

Tam Tue Do

Female

Chief Accountant

 

Thanh Hai Thi Nguyen

Female

Deputy Managing Director

 

Vuong Tien Nguyen

Male

Deputy Managing Director

 

 

 

Previous Directors

 

No previous directors for this company.

 

 

Share Capital Structure

 

Nominal Share Capital   2.300.000.000.000

Issued Share Capital     2.300.000.000.000

 

 

Shareholders

 

Shareholder

Address

% Shares Held

HANOI PEOPLE'S COMMITTEE

Vietnam

100

 

 

Ultimate Holding Parent

 

Name

Status

Registration Number

Address

HANOI PEOPLE'S COMMITTEE

Active

P2779248

Vietnam

 

 

Immediate Holding Parent

 

No Immediate Holding Parent for this company.

 

 

Subsidaries

 

Name

Status

Registration Number

Address

BAT TRANG CERAMIC JSC

Active

P1937074

Hamlet 2 Bat Trang Village, Gia Lam, Hanoi

CHO BUOI JSC

Active

P1937091

Cho Buoi Phuong Buoi, Tay Ho, Hanoi

CHU DAU CERAMIC JSC

Active

P3886782

Vietnam

HA NOI SUPERMARKET DEVELOPMENT JSC

Active

P3886794

38-40 Le Thai To St Hang Trong Ward, Hoan Kiem Dist, Hanoi

HANOI BUILDING INVESTMENT & GLASS JSC

Active

P1937086

25 Nguyen Huy Tuong, Thanh Xuan, Hanoi

HANOI BUILDING MATERIAL JSC

Active

P1937082

249 Thuy Khue, Tay Ho, Hanoi

HANOI FOOD STATE OWNED MEMBER CO LTD

Active

P1937113

24-26 Tran Nhat Duat, Hoan Kiem Dist, Hanoi

HANOI IMPORT EXPORT & INVESTMENT CORP

Active

P0769905

201 Kham Thien, Tho Quang Ward, Dong Da, Hanoi

HANOI MANUFACTURING IMPORT EXPORT AGRICULTURAL PRODUCTS CO

Active

P1937103

210 Nguyen Trai, Thanh Xuan, Hanoi

HANOI TRADE & INVESTMENT CO

Active

P1937101

93 Cau Giay, Cau Giay Dist, Hanoi

HANOI TRADE CORP - HO CHI MINH CITY BRANCH

Active

P1060836

77-79 Pho Duc Chinh St, District 1, Ho Chi Minh

HANOI TRADING SERVICE FASHION CO

Active

P1937105

13 Dinh Le, Hoan Kiem Dist, Hanoi

HAPRO DANANG TRADING & INVESTMENT JSC

Active

P3886790

Lot A1-3 Le Van Hien St Khue My Ward, Ngu Hanh Son Dist, Da Nang

HAPRO DISTILLERY JSC

Active

P1937076

Hapro Food Industrial Zone Le Chi, Gia Lam, Hanoi

HAPRO EVENT & GASTRONOMY JSC

Active

P3886787

172 Ngoc Khanh St Giang Vo Ward, Ba Dinh Dist, Hanoi

HAPRO TRAVEL JSC

Active

P1937098

11B Trang Thi, Hoan Kiem Dist, Hanoi

HAPRO VOLKA JSC

Active

P3886785

Hapro Food Industrial Zone Le Chi, Gia Lam, Hanoi

IMPORT - EXPORT SOUTHERN HANOI JSC

Active

P1937090

497 Dien Bien Phu, District 3, Ho Chi Minh

LIVE STOCK PRODUCTION & TRADING JSC

Active

P1937088

6Fl Hapro Holding 11B Cat Linh, Dong Da, Hanoi

LONG BIEN TRADE INVESTMENT JSC

Active

P1937093

561 Nguyen Van Linh, Long Bien Dist, Hanoi

PHUONG NAM PUNA JSC

Active

P1937095

352 Giai Phong,Phuong Liet, Thanh Xuan, Hanoi

THUY TA JSC

Active

P1937084

1-6 Le Thai To, Hoan Kiem, Hanoi

TRANG THI TRADE & SERVICE CO

Active

P1937107

12-14 Trang Thi, Hoan Kiem Dist, Hanoi

 

 

Affiliates

 

Name

Status

Registration Number

Address

ASIA EAST JSC

Active

P1936969

Vietnam

BOHEMIA CRYSTAL HANOI CO LTD

Active

P1936944

Vietnam

HANOI COMMERCIAL IMPORT EXPORT JSC

Active

P1936972

Vietnam

HANOI IMPORT-EXPORT DEVELOPMENT INVESTMENT JSC

Active

P1936974

Vietnam

HANOI INVESTMENT TRADING & SERVICES GENERAL JSC

Active

P1144739

12 Lane 84 Ngoc Khanh St Ngoc Khanh Ward, Ba Dinh, Hanoi

HANOI MILK JSC

Active

P0170703

Quang Minh Industrial Zone Km 9 Bac Thang Long Noi Bai St, Hanoi

HANOI OPTIC JSC

Active

P1936945

Vietnam

HANOI PLAZA LTD CO , THE

Active

P0197712

Hai Ba Trung Dist, Hanoi

HANOI TRADE DEVELOPMENT JSC

Active

P1936956

Vietnam

HAPRO HERBAL WINE JSC

Active

P1936976

Vietnam

HAPRO PURE WATER JSC

Active

P1936954

Vietnam

HAPRO SERVICE JSC

Active

P1936961

Vietnam

HAPRO SUPPLY RATION OF INDUSTRY JSC

Active

P1936949

Vietnam

LIXEHA JSC

Active

P1936947

Vietnam

LONG SON JSC

Active

P1936967

Tan Binh Industrial Park Lot 3-23 A Rd 19/5A, Tan Phu Dist, Ho Chi Minh

THANG LONG WINE JSC

Active

P1936959

Vietnam

TRADITIONAL FOOD JSC

Active

P1936951

Vietnam

VIET BAC CO LTD

Active

P0241775

189 Chua Boc, Dong Da, Hanoi

 

 

Negative Information

 

No negative information for this company

 

 

 


 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

INR 68.39

UK Pound

1

INR 91.44

Euro

1

INR 80.14

VND

1

INR 0.0030

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

PRI

 

 

Report Prepared by :

TPT

 


 

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)

 

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