MIRA INFORM
REPORT
|
Report Date : |
22.02.2011 |
IDENTIFICATION DETAILS
|
Name : |
KING POWER
INTERNATIONAL CO., LTD. |
|
|
|
|
Formerly Known As : |
Down Town
Duty Free Shop Co.,
Ltd. |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2009 |
|
|
|
|
Date of Incorporation : |
27.04.1995 |
|
|
|
|
Com. Reg. No.: |
0105538051683 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Duty Free Shop Operator |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
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 – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
KING
POWER INTERNATIONAL CO., LTD.
SUMMARY
BUSINESS ADDRESS :
RATCHATHEWEE,
TELEPHONE : [66] 2677-8888,
2205-8888
FAX : [66] 2677-8877,
2677-8898
E-MAIL ADDRESS : hotline@kingpower.com, webmaster@kingpower.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1995
REGISTRATION NO. : 0105538051683 [Former
: 1058/2538]
CAPITAL REGISTERED : BHT.
200,000,000
CAPITAL PAID-UP : BHT.
200,000,000
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SOMBAT
DECHAPANITKUL, THAI
GROUP MANAGING
DIRECTOR
NO. OF
STAFF : 1,000
LINES OF
BUSINESS : DUTY
FREE SHOP OPERATOR
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
FOR
MANAGEMENT STANDARD : MANAGEMENT
WITH GOOD PERFORMANCE
HISTORY
The subject was
established on April 27,
1995 as a
private limited company
by Thai groups
as the first
“Down Town Duty
Free Shop Co., Ltd.,”
the present name
is “Thailand Duty
Free Shop Co.,
Ltd.” [TDFS] was
an established company
owned and operated
by the Tourism
Authority of Thailand
[TAT] and was the
only government authorized
Downtown Duty Free
Shop in Thailand.
It was initially
operated and assisted
by an “Aer
Rianta International Co., Ltd.”,
an Ireland management
team who had
experience in duty
free shop operator
in Ireland, Dubai,
Bahrain and Moscow.
· Later it
was found that “Aer
Rianta International Co., Ltd.”,
could not manage
TDFS according to TAT contract. It has
obtained a continuous
loss. As a
result, TAT then
opened a concession
for other companies
to operate TDFS
in a replacement
of “AER Rianta
International Co., Ltd.”.
· Finally, “King
Power International Co.,
Ltd.” was qualified and
granted a 10
years concession providing
that it could
manage TDFS successfully
& accordingly to
the TAT contract.
“King Power International
Co., Ltd.” has
paid a concession
for Bht. 900
million to TAT, excluding
10% profit sharing. At
the present, the
management team is
led by Mr. Vichai
Raksriaksorn, the owner
of “King Power
International Co., Ltd.”
The subject currently
employs approximately 1,000
staff.
On October
9, 2006, the
subject was relocated
its registered and
operating address from
989 Siam Tower
Bldg., Rama 1
Rd., Pathumwan, Bangkok
10330, to its own
complex at 8
Rangnam Rd., Thanon
Phyathai, Ratchathewee, Bangkok
10400.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Aim-on Raksri-aksorn |
[x] |
Thai |
54 |
|
Mr. Sombat Dechapanitkul |
[x] |
Thai |
50 |
|
Mr. Suwan Panyapas |
|
Thai |
67 |
|
Mr. Vichai Raksri-aksorn |
[x] |
Thai |
53 |
AUTHORIZED PERSON
Any of the mentioned
directors [x] can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Vichai
Raksri-aksorn is the
Group Chairman & CEO.
He is Thai
nationality with the
age of 53
years old.
Mr. Chulchit
Bunyaketu is the
Group Deputy Chairman.
He is Thai
nationality.
Mrs.
Aim-on Raksri-aksorn is
the Group Deputy
Chairman & Chief
Financial Officer. She
is Thai nationality
with the age
of 54 years
old.
Mr. Sombat
Dechapanitkul is the
Group Managing Director.
He is Thai nationality with
the age of 50 years.
Mr. Suwan
Panyapas is the
Director & Group Senior Advisor.
He is Thai
nationality with the
age of 67
years old.
Mrs. Susan
Valerie Whelan is
the Group Deputy
Managing Director.
She is British
nationality.
Mrs.
Siriporn Arayathakul is the Assistant
Managing Director [Group Operation].
She is Thai
nationality.
Mr.
Pichai Pitakchaisuk is
the Assistant Managing
Director [Group Merchandising].
He is Thai
nationality.
Mrs. Angkana
Anantachai is the
Senior Accounting Director.
She is Thai
nationality.
Mrs. Somchit
Thachaiemamorn is the
Senior Information Technology
Director.
She is Thai
nationality.
Mrs. Ladda
Taneepanichakul is the
Group Internal Audit
Director.
She is Thai
nationality.
Mrs. Unchalee
Ruchipong is the
C.E.O. & Executive Board Office
Director.
She is Thai
nationality.
Mr. Winid
Youngsurakan is the
Legal Director.
He is Thai
nationality.
Mr. Jinardith
Charoensudja is the
KPI Shop Operation
Director.
He is Thai
nationality.
Mr. Tavisak
Poontanes is the
Outlet Shop Operation
Director.
He is Thai
nationality.
Mr. Somboon
Tharusuwan is the
Government Liaison Director.
He is Thai
nationality.
Mr. Sakda
Lertvatrakan is the
Membership Director.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is an operator of
downtown Duty Free
shops, initially located
at the 7th Floor
World Trade Center
and Mahathun Plaza
on Ploenchit Road.
On October 9,
2006, the duty
free shop has
been moved together
with an operating
office to 8
Rangnam Rd., providing
international visitors and
Thai nationals traveling
abroad with Duty Fee Shopping Facilities. All prestigious
international brand names
merchandises range from
Cognacs, Whisky, Liquors, Wines, Cigars, Perfumes, Cosmetics, Toys Watches,
Writing Instruments, Confectionery,
Leathers, cosmetics & body care
and Fashion Accessories,
with over 100 name brands.
The range also includes
Thai handicrafts, silks,
artifacts & souvenirs in Thai
style and jewelry
goods.
In addition, its Advertising Department also runs the
Light Box and Installation
of Billboard Advertisement
business in all Passenger Terminal throughout Suvarnabhumi International
Airport in Samutprakarn, Chiangmai Airport
and Phuket International
Airports.
IMPORT [COUNTRIES]
90% of products
is imported from
U.S.A., Australia, U. K.,
France, Germany, Italy,
Switzerland, Japan, Singapore,
Hong Kong, Republic
of China, Korea,
India, Taiwan, Malaysia,
Africa and Middle
East countries, the
remaining 10% is
purchased locally.
SALES [LOCAL]
100% of the
products is sold
locally to retailers
and end-users.
SUBSIDIARIES & AFFILIATED
COMPANIES
|
Name |
Country |
Type of
Business |
|
|
|
|
|
King Power International Group
[ |
|
Marketing consultant
service |
|
King Power Duty
Free Co., Ltd. |
|
Operates Duty Free
shops at |
|
King Power Tax
Free Co., Ltd. |
|
Operating Tax
Free shops at Airport. |
|
King Power Hotel
Management Co., Ltd. |
|
Operates the Pullman
Bangkok King Power Hotel |
|
King Power Suvarnabhumi Co.,
Ltd. |
|
Operate all commercial
activities in |
|
King Power Entertainment Co.,Ltd. |
|
Operates all restaurants in |
|
King Power Marketing
& Management Co.,
Ltd. |
|
Distributor of Consumer
Products |
|
King Power Development
Co., Ltd. |
|
Collection Service of Duty Free
Goods |
LITIGATION
Bankruptcy and
Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the
subject found at
Legal Execution Department
for the past
five years.
Others
There are no
legal suits filed
against the subject
for the past
two years.
CREDIT
Selling terms are
by cash or
on the credit
of 30 days.
Purchasing terms are
by cash or
on the credit
of 30-60 days.
Imports are by
L/C at sight
or T/T.
BANKING
Bangkok
Bank Public Co., Ltd.
[Ploenchit Branch:
The
Siam Commercial Bank
Public Co., Ltd.
[Head Office :
Siam
City Bank Public
Co., Ltd.
[Head Office :
1101 New
TMB
Bank Public Co., Ltd.
[Head Office :
EMPLOYMENT
The subject alone employs
approximately 1,000 staff. [all
office staff].
LOCATION DETAILS
The premise is
owned for administrative office
and Duty free
shop at the
heading address. Premised
is located in
a prime commercial
area.
REMARK
MAXIMUM CREDIT SHOULD
BE GRANTED AT
US$ 2,000,000.
COMMENT
The subject is the
only country’s leading
company providing duty
free products for
both local and
international travelers. Its unrivalled
range of up-market boutiques,
branded leather goods,
watches, fragrances, cosmetics,
electronics, jewelry and
etc., allow tourists to
fulfill with their
styles to suit
the tastes of
a diverse world.
At the present,
the majority of
customers are the
Asian tourists such
as Japan, Chinese, Taiwan
& Korea. King Power
International Group Co.,
Ltd. is the
largest Thai owned
operator of Duty Free and
Tax Free service.
Today it has
more than 150
outlets in Suvarnabhumi
Airport and Downtown Duty Free
Mall.
FINANCIAL INFORMATION
The capital was
registered at Bht. 1,000,000 divided
into 10,000 shares of
Bht. 100 each.
The capital was
increased later as
followings :
Bht. 5,000,000
on January 30,
1996
Bht. 200,000,000
on June 2,
1997
The latest registered
capital was increased
to Bht. 200,000,000 divided into
2,000,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
[as at April
29, 2010]
|
NAME |
HOLDING |
% |
|
V and
A Holding Co.,
Ltd. Nationality: Thai Address :
|
1,250,000 |
62.50 |
|
Ms. Voramas Raksri-aksorn Nationality: Thai Address :
|
300,000 |
15.00 |
|
Mr. Apichet
Raksri-aksorn Nationality: Thai Address : 17/586 Sukhumvit 6 Rd., Klongtoey,
|
200,000 |
10.00 |
|
Mr.
Vichai Raksri-aksorn Nationality: Thai Address : |
129,999 |
6.50 |
|
Mrs.
Aim-on Raksri-aksorn Nationality: Thai Address : 99
Moo 1, Bangramad,
Talingchan, |
70,000 |
3.50 |
|
Mr. Aiyawat
Raksri-aksorn Nationality: Thai Address : |
50,000 |
2.50 |
|
Ms.
Anocha Komnerdngarm Nationality: Thai Address : 70
Charoennakorn 21 Rd.,
Banglampulang,
Klongsan, |
1 |
- |
Total Shareholders : 7
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO
Mrs. Vilairat Rojnakarin No.
3104
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2009 &
2008 were:
ASSETS
|
Current Assets |
2009 |
2008 |
|
|
|
|
|
Cash and Cash Equivalents |
37,843,918 |
104,371,506 |
|
Trade Accounts Receivable |
204,616,295 |
112,170,528 |
|
Trade Accounts Receivable
& Deferred Service Income -
Related Company |
1,141,308,231 |
612,694,031 |
|
Short Term Loan
to Person & Related
Company |
5,676,590,443 |
6,217,084,302 |
|
Inventories |
992,139,091 |
1,008,397,996 |
|
Deferred Interest |
1,182,528,632 |
837,204,263 |
|
Other Current Assets
|
148,823,624 |
161,092,493 |
|
|
|
|
|
Total Current Assets
|
9,383,850,234 |
9,053,015,119 |
|
Cash at Bank
under Commitment |
67,046,164 |
67,451,978 |
|
Long Term Investment |
1,229,916,000 |
329,979,000 |
|
Fixed Assets |
4,305,922,222 |
4,623,549,227 |
|
Intangible Assets |
8,543,931 |
10,653,380 |
|
Prepaid Leasehold Right |
626,086,366 |
649,258,830 |
|
Other Assets |
3,705,477 |
1,544,036 |
|
Total Assets |
15,625,070,394 |
14,735,451,570 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2009 |
2008 |
|
|
|
|
|
Bank Overdraft &
Short Term Loan
from Financial Institute |
2,021,482,643 |
2,293,592,585 |
|
Short Term Loan-Promissory Note |
300,000,000 |
500,000,000 |
|
Trade Accounts & Notes
Payable |
670,352,729 |
471,690,658 |
|
Trade Accounts Payable
& Accrued Service
- Related Company |
235,343,656 |
234,009,762 |
|
Current Portion of Long
Term Liabilities |
2,512,413,391 |
372,000,000 |
|
Accrued Interest |
790,897,251 |
522,068,455 |
|
Accrued Expenses |
111,655,293 |
44,236,330 |
|
Accrued Income Tax |
- |
29,892,824 |
|
Other Current Liabilities |
339,918,765 |
305,006,414 |
|
|
|
|
|
Total Current Liabilities |
6,982,063,728 |
4,772,497,028 |
|
Long Term Loan
from Related Company |
4,777,713,665 |
5,243,606,821 |
|
Long Term Loan |
2,814,116,948 |
3,750,782,431 |
|
Total Liabilities |
14,573,894,341 |
13,766,886,280 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 2,000,000 shares |
200,000,000 |
200,000,000 |
|
Capital Paid |
200,000,000 |
200,000,000 |
|
Retained Earning -
Unappropriated |
851,176,053 |
768,565,290 |
|
Total Shareholders' Equity |
1,051,176,053 |
968,565,290 |
|
Total Liabilities & Shareholders' Equity |
15,626,070,394 |
14,735,451,570 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2009 |
2008 |
|
|
|
|
|
Sales Income |
7,044,451,815 |
7,664,857,468 |
|
Service Income |
231,379,088 |
229,615,186 |
|
Management Import Income |
210,061,015 |
249,926,238 |
|
Management Income |
961,200,000 |
924,000,000 |
|
Deferred Income |
379,308,920 |
314,422,464 |
|
Gain on Exchange
Rate |
73,838,647 |
- |
|
Other Income |
314,066,893 |
318,308,217 |
|
Total Revenues |
9,214,306,378 |
9,701,129,573 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
6,123,935,839 |
6,728,372,851 |
|
Cost of Services |
122,097,731 |
121,385,794 |
|
Selling Expenses |
797,257,975 |
774,921,336 |
|
Administrative Expenses |
1,333,245,044 |
1,108,238,684 |
|
Financial Expenses |
- |
7,110,501 |
|
Total Expenses |
8,376,536,589 |
8,740,029,166 |
|
|
|
|
|
Profit Before Interest Expenses & Income
Tax |
837,769,789 |
961,100,407 |
|
Interest Expenses |
[723,737,048] |
[703,329,376] |
|
Income Tax |
[31,421,978] |
[83,575,522] |
|
Net Profit / [Loss] |
82,610,763 |
174,195,509 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2009 |
2008 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.34 |
1.90 |
|
QUICK RATIO |
TIMES |
1.01 |
1.48 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.69 |
1.71 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.47 |
0.54 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
57.98 |
53.73 |
|
INVENTORY TURNOVER |
TIMES |
6.30 |
6.79 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
10.26 |
5.19 |
|
RECEIVABLES TURNOVER |
TIMES |
35.56 |
70.38 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
39.17 |
25.13 |
|
CASH CONVERSION CYCLE |
DAYS |
29.07 |
33.79 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
85.85 |
86.77 |
|
SELLING & ADMINISTRATION |
% |
29.28 |
23.85 |
|
INTEREST |
% |
9.95 |
8.82 |
|
GROSS PROFIT MARGIN |
% |
40.80 |
36.12 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
11.51 |
12.17 |
|
NET PROFIT MARGIN |
% |
1.14 |
2.21 |
|
RETURN ON EQUITY |
% |
7.86 |
17.98 |
|
RETURN ON ASSET |
% |
0.53 |
1.18 |
|
EARNING PER SHARE |
BAHT |
41.31 |
87.10 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.93 |
0.93 |
|
DEBT TO EQUITY RATIO |
TIMES |
13.86 |
14.21 |
|
TIME INTEREST EARNED |
TIMES |
1.16 |
1.38 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(7.84) |
|
|
OPERATING PROFIT |
% |
(12.83) |
|
|
NET PROFIT |
% |
(52.58) |
|
|
FIXED ASSETS |
% |
(6.87) |
|
|
TOTAL ASSETS |
% |
6.04 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
40.80 |
Impressive |
Industrial Average |
27.83 |
|
Net Profit Margin |
1.14 |
Impressive |
Industrial Average |
(11.93) |
|
Return on Assets |
0.53 |
Satisfactory |
Industrial Average |
0.58 |
|
Return on Equity |
7.86 |
Impressive |
Industrial Average |
4.39 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from revenues after accounting for the
cost of goods sold. Gross profit margin serves as the source for paying
additional expenses and future savings. Gross Profit Margin is 40.8%. When
compared with the industry average, the ratio of the company was higher,
indicated that company was more profitable than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. Net Profit Margin is 1.14%
compared with those of its average competitors in the same industry, indicated
that business was an efficient operator in a dominant position within its
industry.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. When compared with the
industry average, it was lower, the company's figure is 0.53%.
Return on Equity indicates how profitable a company is by comparing its
net income to its average shareholders' equity, ROE measures how much the
shareholders earned for their investment in the company. Return on Equity is
7.86%, higher figure when compared with those of its average competitors in the
same industry, indicated that business was an efficient profit in a dominant
position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY RATIO
|
Current Ratio |
1.34 |
Deteriorated |
Industrial Average |
70.32 |
|
Quick Ratio |
1.01 |
|
|
|
|
Cash Conversion Cycle |
29.07 |
|
|
|
The Current Ratio is to ascertain whether a company's short-term assets
are readily available to pay off its short-term liabilities. The company's figure
is 1.34 times in 2009, decrease from 1.9 times, then it is generally considered
to have good short-term financial strength. When compared with the industry
average, the ratio of the company was lower.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 1.01 times in 2009,
decrease from 1.48 times, although excluding inventory so the company still have
good short-term financial strength.
The Cash Conversion Cycle measures the number of days a company's cash
is tied up in the production and sales process of its operations and the
benefit from payment terms from its creditors. It meant the company could survive
when no cash inflow was received from sale for 30 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.93 |
Impressive |
Industrial Average |
0.53 |
|
Debt to Equity Ratio |
13.86 |
Risky |
Industrial Average |
0.96 |
|
Times Interest Earned |
1.16 |
Deteriorated |
Industrial Average |
954.03 |
Debt to Equity Ratio a measurement of how much suppliers, lenders, creditors
and obligors have committed to the company versus what the shareholders have
committed. A lower the percentage means that the company is using less leverage
and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 1.16 higher than 1, so the company can pay interest
expenses on outstanding debt.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.93 greater than 0.5, most of the
company's assets are financed through debt.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
1.69 |
Deteriorated |
Industrial Average |
37,619.40 |
|
Total Assets Turnover |
0.47 |
Deteriorated |
Industrial Average |
2.11 |
|
Inventory Conversion Period |
57.98 |
|
|
|
|
Inventory Turnover |
6.30 |
Deteriorated |
Industrial Average |
28.38 |
|
Receivables Conversion Period |
10.26 |
|
|
|
|
Receivables Turnover |
35.56 |
Impressive |
Industrial Average |
22.09 |
|
Payables Conversion Period |
39.17 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.11 |
|
|
1 |
Rs.73.25 |
|
Euro |
1 |
Rs.61.70 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Company |
---- |
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 and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.