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MIRA INFORM REPORT
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Report No. : |
506537 |
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Report Date : |
02.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
KUMHO POLYCHEM
CO., LTD. |
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|
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Registered Office : |
100, Cheonggyecheon-Ro, Jung-Gu, Seoul, 8F, East Wing, Signature
Tower, Korea 04542 |
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Country : |
South Korea |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
05.06.1985 |
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Com. Reg. No.: |
104-81-34515 |
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Legal Form : |
Co., Ltd by shares |
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Line of Business : |
Manufacture of Synthetic Rubber. (Athylenpropylene Rubber, Synthetic Rubber, EPDM) |
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No. of Employees : |
198 |
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 |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
South Korea |
A1 |
A1 |
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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 |
SOUTH KOREA - ECONOMIC OVERVIEW
After emerging from the 1950-53 war with North Korea, South Korea emerged as one of the 20th century’s most remarkable economic success stories, becoming a developed, globally connected, high-technology society within decades. In the 1960s, GDP per capita was comparable with levels in the poorest countries in the world. In 2004, South Korea joined the trillion-dollar club of world economies.
Beginning in the 1960s under President PARK Chung-hee, the government promoted the import of raw materials and technology, encouraged saving and investment over consumption, kept wages low, and directed resources to export-oriented industries that remain important to the economy to this day. Growth surged under these policies, and frequently reached double-digits in the 1960s and 1970s. Growth gradually moderated in the 1990s as the economy matured, but remained strong enough to propel South Korea into the ranks of the advanced economies of the OECD by 1997. These policies also led to the emergence of family-owned chaebol conglomerates such as Daewoo, Hyundai, and Samsung, which retained their dominant positions even as the government loosened its grip on the economy amid the political changes of the 1980s and 1990s.
The Asian financial crisis of 1997-98 hit South Korea’s companies hard because of their excessive reliance on short-term borrowing, and GDP ultimately plunged by 7% in 1998. South Korea tackled difficult economic reforms following the crisis, including restructuring some chaebols, increasing labor market flexibility, and opening up to more foreign investment and imports. These steps lead to a relatively rapid economic recovery. South Korea also began expanding its network of free trade agreements to help bolster exports, and has since implemented 16 free trade agreements covering 58 countries—including the United State and China—that collectively cover more than three-quarters of global GDP.
In 2017, the election of President MOON Jae-in brought a surge in consumer confidence, in part, because of his successful efforts to increase wages and government spending. These factors combined with an uptick in export growth to drive real GDP growth to more than 3%, despite disruptions in South Korea’s trade with China over the deployment of a US missile defense system in South Korea.
In 2018 and beyond, South Korea will contend with gradually slowing economic growth - in the 2-3% range - not uncommon for advanced economies. This could be partially offset by efforts to address challenges arising from its rapidly aging population, inflexible labor market, continued dominance of the chaebols, and heavy reliance on exports rather than domestic consumption. Socioeconomic problems also persist, and include rising inequality, poverty among the elderly, high youth unemployment, long working hours, low worker productivity, and corruption.
|
Source
: CIA |
Basic
Information
|
Company Name |
KUMHO POLYCHEM
CO., LTD. |
|
Registered Address |
100, Cheonggyecheon-ro, Jung-gu, Seoul,
Korea |
|
Building |
8F, East Wing, Signature Tower |
|
Zip Code |
04542 |
|
Tel |
+82-2-6303-3801 |
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Fax |
+82-2-6303-3812 |
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E-mail |
|
|
Website |
|
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Trading Address |
8F, East Wing, Signature Tower, 100, Cheonggyecheon-ro,
Jung-gu, Seoul, Korea (Old Address System : 8F, East Wing,
Signature Tower, 99, Supyo-dong, Jung-gu, Seoul, Korea) |
|
Tel |
+82-2-6303-3801 |
|
Fax |
+82-2-6303-3812 |
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Other Address-Yeocheon Factory |
144-6, Wolha-dong, Yeosu-si, Jeollanam-do,
Korea |
|
Tel |
+82-61-688-2711 |
|
Fax |
+82-61-688-2899 |
|
Type |
Export |
|
Industry |
Manufacture of Synthetic Rubber |
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Main Business |
Athylenpropylene Rubber, Synthetic Rubber, EPDM |
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Sub
Business |
|
|
Established (mm/dd/yyyy) |
06/05/1985 |
Detailed
Products
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Rubber compound(13101607) |
CEO’s
|
Name |
Park Chan-Gu |
|
Date of Birth |
08/13/1948 |
|
Title |
Co-President & CEO |
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Nationality |
Korean |
Profiles
|
Capital (KRW) |
21,500,000,000 |
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Employees |
198 |
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Formation |
Co., Ltd by shares Foreign Direct Investment Corporation A company of KUMHO ASIANA BUSINESS GROUP |
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Bank Details |
Woori Bank-Sales 1 Division Korea Development Bank Shinhan Bank KEB Hana Bank |
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Corporate Registered No. |
110111-0400533 |
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Business Registered No. |
104-81-34515 |
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Permit & Licenses |
11/20/1993 Obtained ISO 9002 05/24/1994 Obtained ISO 9001 09/30/1996 Obtained ISO 14001 12/06/2000 Obtained KOSHA 2000 certificate 10/17/2000 Obtained OHSAS 18001 certificate 01/27/2006 Obtained ISO 9001 by DNV 01/27/2006 Obtained ISO 14001 by DNV Int’l Trade No.: 548029 |
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Shareholder Position |
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Company History |
06/05/1985 Incorporated as KUMHO EP RUBBER CO.,
LTD. as a JV between KOREA SYNTHETIC RUBBER INDUSTRIES CO., LTD. and JAPAN
SYNTHETIC RUBBER CO., LTD. 05/01/1997 Changed the company’s name to
Kumho Polychem Co., Ltd. 03/27/2001 Increased the authorized shares
to 12,000,000 shares from 4,000,000 shares 11/06/2001 Increased capital to
30,000,000,000 KRW from 15,000,000,000 KRW 06/11/2002 Decreased capital to
24,000,000,000 KRW from 30,000,000,000 KRW 03/27/2003 Decreased capital to
21,500,000,000 KRW from 24,000,000,000 KRW 11/2007 Awarded USD 100 Million Export
Tower in the 44th International Trading Day 09/07/2008 Moved to 20th Fl., Kumho
Asiana Main Bldg., 115, Sinmunno 1-ga, Jongno-gu, Seoul, Korea from 57, Sinmunno 1-ga, Jongno-gu, Seoul, Korea 09/01/2012 Moved to the present HQ address from 20th Fl., Kumho Asiana
Main Bldg., 115, Sinmunno 1-ga, Jongno-gu, Seoul, Korea |
Management
|
Job Description |
Name |
Nationality |
Date of Birth |
Inauguration Date |
|
Co-President & CEO |
Park Chan-Gu |
Korean |
08/13/1948 |
04/27/2012 |
|
Co-President & CEO |
Wakabayashi Takashi |
Japanese |
01/01/1952 |
06/15/2012 |
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Director |
Kim Sung-Chae |
Korean |
05/20/1952 |
06/15/2012 |
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Director |
Yamawaki Kazumasa |
Japanese |
05/03/1960 |
06/17/2016 |
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Director |
Koshiba Mitsunobu |
Japanese |
11/09/1955 |
06/17/2011 |
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Director |
Ko Young-Do |
Korean |
05/15/1965 |
01/18/2017 |
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Auditor |
Iwabuchi Tomoaki |
Japanese |
03/01/1958 |
06/18/2014 |
|
Auditor |
Kim Min-Ho |
Korean |
03/31/1967 |
01/01/2015 |
Financials
|
Year / Unit : KRW |
Sales |
Assets |
Net Income |
|
423,060,221,336 |
501,903,477,461 |
-2,825,482,515 |
|
|
2016 |
388,963,699,960 |
510,085,613,833 |
-1,058,530,957 |
|
2015 |
419,389,170,716 |
528,831,765,816 |
26,389,837,680 |
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2014 |
415,255,926,738 |
485,419,907,938 |
-8,262,054,670 |
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2013 |
390,799,410,385 |
440,158,906,726 |
27,540,557,360 |
|
2012 |
430,827,352,166 |
402,274,646,624 |
105,648,252,677 |
|
2011 |
403,243,061,120 |
308,647,190,756 |
110,629,567,944 |
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2010 |
309,805,563,351 |
215,220,666,911 |
54,384,460,467 |
|
2009 |
219,001,945,770 |
159,634,856,497 |
21,695,848,327 |
|
2008 |
204,491,335,877 |
153,916,504,724 |
9,667,634,155 |
|
2007 |
151,482,919,960 |
134,196,824,121 |
4,814,410,180 |
|
2006 |
143,249,207,329 |
108,829,517,839 |
11,048,313,789 |
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2005 |
129,916,865,273 |
81,204,422,939 |
17,568,304,688 |
|
2004 |
110,680,354,635 |
61,447,096,136 |
4,718,277,521 |
|
2003 |
99,325,824,880 |
61,964,578,036 |
6,328,211,894 |
Financial
Description
|
Authorized Capital(KRW) |
60,000,000,000 |
|
Paid-Up Capital(KRW) |
21,500,000,000 |
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Total Issues Shares |
4,300,000 |
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Balance Sheet |
|||
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Unit : Korean Won |
As of 12/31/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Total
Assets |
501,903,477,461 |
510,085,613,833 |
528,831,765,816 |
|
Current Assets |
127,415,712,999 |
114,538,293,223 |
117,031,157,424 |
|
Inventories |
79,124,687,522 |
68,243,342,124 |
79,278,670,176 |
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Trade
Receivables |
38,651,473,400 |
33,643,167,976 |
31,879,468,636 |
|
Other
Receivables |
3,799,239,067 |
3,445,232,369 |
3,108,343,710 |
|
Cash
& Cash Equivalents |
5,155,786,802 |
7,568,649,583 |
2,452,216,611 |
|
Deferred
Income Tax Assets |
- |
1,308,354,901 |
- |
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Other
Current Assets |
684,526,208 |
329,546,270 |
312,458,291 |
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Non-Current Assets |
374,487,764,462 |
395,547,320,610 |
411,800,608,392 |
|
Tangibles |
368,010,853,459 |
390,640,693,381 |
406,732,189,835 |
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Intangibles |
1,124,892,975 |
1,482,149,637 |
1,702,872,685 |
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Other Receivables |
3,318,111,071 |
2,971,015,920 |
3,131,150,865 |
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Deferred Income Tax Assets |
2,033,906,957 |
453,461,672 |
234,395,007 |
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Total Liabilities |
178,153,028,169 |
182,676,617,144 |
197,053,360,994 |
|
Current Liabilities |
116,860,736,765 |
106,274,594,592 |
129,634,644,666 |
|
Trade Payables |
31,942,528,837 |
28,339,835,557 |
24,287,132,650 |
|
Other Payables |
24,088,320,647 |
36,784,507,299 |
30,951,330,148 |
|
Short-Term
Borrowings |
59,929,065,693 |
40,680,728,699 |
71,048,334,526 |
|
Accrued
Income Tax |
106,252,034 |
- |
2,249,144,853 |
|
Other
Current Liabilities |
794,569,554 |
469,523,037 |
1,098,702,489 |
|
Non-Current Liabilities |
61,292,291,404 |
76,402,022,552 |
67,418,716,328 |
|
Long-Term
Borrowings |
56,275,450,010 |
73,211,150,002 |
61,973,350,000 |
|
Confirmed
Salaries |
4,639,044,482 |
2,823,537,389 |
5,116,739,983 |
|
Long-Term Accrued Expenses |
377,796,912 |
367,335,161 |
328,626,345 |
|
Capital Stock |
21,500,000,000 |
21,500,000,000 |
21,500,000,000 |
|
Capital
Surplus |
1,559,108,425 |
1,559,108,425 |
1,559,108,425 |
|
Profit
Surplus |
300,691,340,867 |
304,349,888,264 |
308,719,296,397 |
|
Total
Equity |
323,750,449,292 |
327,408,996,689 |
331,778,404,822 |
|
Liab.
& Shareholder’s Equity |
501,903,477,461 |
510,085,613,833 |
528,831,765,816 |
|
Income Statement |
|||
|
Unit : Korean Won |
As of 12/31/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Sales |
423,060,221,336 |
388,963,699,960 |
419,389,170,716 |
|
Cost
of Sold Goods |
402,194,620,579 |
358,813,102,476 |
358,091,945,083 |
|
Gross
Profit |
20,865,600,757 |
30,150,597,484 |
61,297,225,633 |
|
Selling
& Admin. Expenses |
31,576,411,095 |
27,646,827,963 |
27,746,406,202 |
|
Operating
Income |
-10,710,810,338 |
2,503,769,521 |
33,550,819,431 |
|
Other
Income |
14,431,563,424 |
4,295,288,175 |
4,516,301,124 |
|
Other
Expenses |
4,866,012,947 |
4,985,360,886 |
4,029,123,265 |
|
Finance
Income |
2,318,517,346 |
2,616,490,240 |
2,249,438,486 |
|
Finance
Expenses |
5,193,404,362 |
6,031,454,128 |
4,585,655,258 |
|
Income
Before Taxes |
-4,020,146,877 |
-1,601,267,078 |
31,701,780,518 |
|
Income
Taxes Expenses |
-1,194,664,362 |
-542,736,121 |
5,311,942,838 |
|
Net
Income |
-2,825,482,515 |
-1,058,530,957 |
26,389,837,680 |
|
Cash Flows |
|||
|
Unit : Korean Won |
As of 12/31/2017 |
As of 12/31/2016 |
As of 12/31/2015 |
|
Operating Activities Cash Flows |
10,752,096,497 |
57,209,056,515 |
67,818,234,370 |
|
Cash
Flows from Operating |
12,252,830,184 |
64,279,216,795 |
70,652,392,025 |
|
Net
Income |
-2,825,482,515 |
-1,058,530,957 |
26,389,837,680 |
|
Adjustment |
|
|
|
|
Changes
in Asset/ & Liability |
|
|
|
|
Interests
Received |
30,652,335 |
31,840,884 |
102,597,871 |
|
Interests
Paid |
-2,795,179,052 |
-3,548,655,654 |
-1,463,827,126 |
|
Income
Taxes |
1,263,793,030 |
-3,553,345,510 |
-1,472,928,400 |
|
Cash
Flows from Investing |
-15,938,574,464 |
-28,762,267,743 |
-80,215,449,585 |
|
Cash
Flows from Financing |
2,793,104,575 |
-23,396,482,009 |
12,220,703,815 |
|
Increase/Decrease
in Cash |
-2,393,373,392 |
5,050,306,763 |
-176,511,400 |
|
Cash
at the Beginning of Year |
7,568,649,583 |
2,452,216,611 |
2,628,080,350 |
|
Cash
at the End of Year |
5,155,786,802 |
7,568,649,583 |
2,452,216,611 |
Products, Technologies, Services
Description
|
Main Products & Services |
Ethylene-Propylene based rubbers(EP(D)M) |
Trade
Partners & Competitors
|
Suppliers |
-- |
|
Customers |
KOREA KUMHO PETRO CHEMICAL CO.,
LTD.(110111-0205975) |
|
Competitors |
SHIN-ETSU SILICONE KOREA CO., LTD. RM. 904, DANAM BLDG., 120, NAMDAEMUNNO 5-GA,
JUNG-GU, SEOUL, KOREA TEL:+82-2-775-9691 FAX:+82-2-775-9690 CHO YANG CORPORATION 111-1, ANPYEONG-RI, HOBEOP-MYEON,
ICHEON-SI, GYEONGGI-DO, KOREA TEL:+82-31-638-4220 FAX:+82-31-636-8015 DYM CO., LTD. 624-2, EOPSEONG-DONG, SEOBUK-GU,
CHEONAN-SI, CHUNGCHEONGNAM-DO, KOREA TEL:+82-41-621-6250 FAX:+82-41-621-8420 |
|
|
|
Related Parties (Subsidiaries,
Joint-Venture & Affiliates)
|
Affiliates |
KUMHO INDUSTRIAL CO., LTD(110111-0134877) ASIANA AIRLINES INC.(110111-0562804) KUMHO TRADING CO., LTD.(110111-2079641) KUMHO MITSUI CHEMICALS, INS.(110111-0612980) KUMHO P&B CHEMICALS, INC.(206211-0018313) ASIANAIDT, INC.(110111-0801848) KUMHO ASIANA CULTURE FOUNDATION(200122-0000323) JSR TRADING CO.LTD |
|
Major Shareholders |
KOREA KUMHO PETRO CHEMICAL CO.,
LTD.(110111-0205975) JSR CORPORATION(JAPAN) |
|
Cooperative Enterprise |
- Insured Company DONGBU INSURANCE CO., LTD.(110111-0095285) -Technical Support Agreement with EXXON MOBIL CHEMICAL COMPANY |
Sales
by Region (Activity & Markets)
The subject deals
with the companies in China, Taiwan and USA.
Court
Action
No.
News
Clipping
-----------
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 66.78 |
|
|
1 |
INR 92.89 |
|
Euro |
1 |
INR 80.74 |
|
KRW |
1 |
INR 0.062 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
|
|
|
|
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 |
|
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.