MIRA
INFORM REPORT
|
Report Date : |
30.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
INDORAMA POLYESTER
INDUSTRIES PUBLIC COMPANY
LIMITED |
|
|
|
|
Formerly Known As : |
TUNTEX
[THAILAND] PUBLIC COMPANY
LIMITED |
|
|
|
|
Registered Office : |
35th
Floor, Ocean Tower
2, 75/92 Soi
Sukhumvit 19, Asoke
Road, Klongtonnua, Wattana,
Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
16.04.1987 |
|
|
|
|
Com. Reg. No.: |
0107537002451 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor and Exporter of Polyester Yarns |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
INDORAMA POLYESTER
INDUSTRIES PUBLIC COMPANY
LIMITED
[FORMER
: TUNTEX [THAILAND]
PUBLIC COMPANY LIMITED]
SUMMARY
ADDRESS : 35th FLOOR,
OCEAN TOWER 2,
75/92
SOI SUKHUMVIT 19,
ASOKE ROAD, KLONGTONNUA,
WATTANA,
BANGKOK 10110
TELEPHONE : [66] 2661-6661
FAX : [66] 2661-6664
E-MAIL : solarn@indorama-th.com
info@indorama-th.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
EATABLISHED : 1987
REGISTRATION
NO. : 0107537002451 [Former : BOR MOR
JOR. 492]
CAPITAL REGISTERED : BHT. 2,226,220,000
CAPITAL PAID-UP : BHT. 2,202,850,000
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
SASHI PRAKASH KHAITAN,
INDIAN
CHIEF EXECUTIVE
OFFICER
NO.
OF STAFF : 1,000
LINES
OF BUSINESS : POLYESTER
YARNS
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was initially
established on April
16, 1987 as a private
limited company under the registered name C.P.P. [Thailand]
Co., Ltd. On
July 30, 1987, the subject
changed its name
to Tuntex [Thailand] Co.,
Ltd., and was
listed on the
Stock Exchange of
Thailand on September
15, 1993. Its
status was converted
into a public limited company
on August 1, 1994
under the name TUNTEX
[THAILAND] PUBLIC COMPANY
LIMITED.
The
subject received Board
of Investment Promotion
in producing synthetic
fibre such as
POY [Partially Oriented
Yarn], Staple Fibre,
Chip, DTY [Draw
Textured Yarn] and
SDY [Spin Draw
Yarn]. It was
a joint venture
company among Taiwanese, Japanese and
Thai investors.
On
December 30, 2008,
the subject registered
for a change
of its name
to INDORAMA POLYESTER INDUSTRIES
PUBLIC COMPANY LIMITED.,
then was revoked
its name from
the Stock Exchange
of Thailand on
April 30, 2009.
It currently employs approximate 1,000
staff.
The subject’s product
quality has already
met the international
standard and received
ISO 9002 Certificate on
April 25, 1997.
Application for the
important environmental quality
standard of ISO
14000 was granted
in 1998.
The
subject’s registered address was
initially located at
Room 1812, 18th Floor,
B.B. Building, 54 Sukhumvit
21 Rd [Soi Asoke], Klongtoeynua,
Wattana, Bangkok 10110.
Later,
the registered address
was relocated to 35th Floor,
Ocean Tower 2,
75/92 Soi Sukhumvit
19, Asoke Rd.,
Klongtonnua, Wattana, Bangkok
10110, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Chira Panupong |
|
Thai |
79 |
|
Mrs. Suchada Sukphanthavorn |
|
Thai |
- |
|
Mr.
Khanit Khongthanarat |
|
Thai |
61 |
|
Mr.
Aloke Lohia |
[x] |
Indian |
53 |
|
Mrs.
Suchitra Lohia |
[x] |
Indian |
47 |
|
Mr.
Amit Lohia |
|
Indian |
37 |
|
Mr.
Sashi Prakash Khaitan |
[x] |
Indian |
63 |
|
Mr.
Ramesh Kumar Narsinghpura |
[x] |
Indian |
51 |
|
Mr.
Vachara Phanchet |
|
Thai |
50 |
|
Mr. Udey
Paul Singhgill |
|
Indian |
58 |
AUTHORIZED PERSON
One
of the mentioned
directors [x] can sign on
behalf of the
subject with the
company’s affixed.
MANAGEMENT
Mr.
Aloke Lohia is
the Chief Executive
Officer of Group.
He
is Indian nationality
with the age
of 53 years old.
Mr. Sashi
Prakash Khaitan is
the Chief Executive
Officer.
He
is Indian nationality
with the age
of 63 years old.
Mr.
Asok Arolah is
the General Manager.
He
is Indian nationality.
Mrs. Sunantha Larnopparat
is the Human
Resources Manager.
She
is Thai nationality.
BUSINESS OPERATIONS
The
subject’s activities are
manufacturer, exporter and
distributor of polyester
yarns, such as Partially Oriented
Yarn [POY], Draw
Textured Yarn [DTY],
as well as
PET plastic resin.
PRODUCTIONS
POY :
95,000 metric tons
per year
DTY : 36,000
metric tons per
year
PET
plastic resin : 108,000
metric tons per
year
PURCHASE
Cotton/plastic resin and raw materials such as Mono Ethylene Glycol
[MEG] and Pure Terephthalic Acid [PTA]
are purchased from both
local and overseas suppliers
in Japan, Germany,
Taiwan, Australia, India and
Republic of China.
SALES
[LOCAL]
80%
of the products
is sold locally
to manufacturers, wholesalers
and end-users.
EXPORT
[COUNTRIES]
20% of the
products is also
exported to Europe, Australia, Republic of China, Singapore,
Taiwan, Indonesia and
Middle East.
LITIGATIONS
Bankruptcy and
Receivership
On December 15, 2003,
the Central Bankruptcy
Court has ordered
Tuntex [Thailand] Public
Company Limited [Debtor]
to enter into
business rehabilitation and
appointed Tuntex [Thailand]
Public Company Limited to be
the Planner according
to the lawsuit
red case no.
2382/2546. As a
result of such
Court order, the
power and duties
in managing the
business and assets
of the debtor, including
all legal rights
of the company’s shareholders
shall be vested
in the Planner according
to Article 90/25
of Bankruptcy Act
B.E. 2483.
On September
10, 2004, the Court
approved the rehabilitation plan
and assigned Tuntex [Thailand]
Public Company Limited
to be the Plan
Administrator. As a
result of such
Court order, the
power and duties
of the Planner
shall be vested
in the Plan Administrator
according to Article
90/59 of Bankruptcy
Act B.E. 2483.
On
October 27, 2008, the Court
has ordered a
cancellation of company’s
rehabilitation according to
Article 90/70 of
Bankruptcy Act B.E.
2483. As a
result of such
Court order, the
power and duties
in managing the
business and assets
of the debtor
shall be vested
in the management
of debtor and
shareholders.
Others
The subject has
several litigations in
relation to its normal course of business
operation, but the management believes that
it would not have
significant affect on the
company’s business.
PARENT COMPANY
Indorama
Ventures Public Co., Ltd.
SUBSIDIARIES AND ASSOCIATED
COMPANIES
Chaophraya Heritage Co.,
Ltd.
Business Type : Real
Estate
Investment : The
subject holds 100% of
the company’s shares.
Tuntex
Textile [Thailand] Co.,
Ltd.
Business Type : Manufacturing &
distribution of fabrics
Investment : The
subject holds 16.67% of
the company’s shares.
CREDIT
Purchasing
terms are by
cash or on the
credits term of
30-60 days.
Imports
are by L/C
at sight or
T/T.
Selling
terms are by
cash or on
the credits term
of 30-60 days.
Exports
are against L/C
at sight or
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
[Head Office :
333 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
The
Siam Commercial Bank
Public Co., Ltd.
[Head Office :
9 Ratchadapisek Rd.,
Ladyao, Jatujak, Bangkok
10900]
Krung
Thai Bank Public
Co., Ltd.
[Head Office : 35 Sukhumvit
Rd., Klongtoeynua, Wattana,
Bangkok 10110]
EMPLOYMENT
The subject
employs approximately 1,000
staff. [office, sales staff
and factory workers]
LOCATION DETAILS
The premise is rented for operating
administrative office at the
heading address. Premise located
in commercial/residential area.
The
factory I is located at
6, I - 2 Road,
Mabtaphut Industrial Estate,
T. Mabtaphut, A.
Muang, Rayong 21150
Tel: [66] 38
683-870-8, Fax [66]
38 683-884.
Factory
II is located
at 35/8 Moo
4, T. Khunkaew, A.
Nakornchaisri, Nakhonpathom 73120.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT EUR
1,000,000.
COMMENT
Economic conditions have not had a great impact
on its business and the year ended with a record-breaking annually with sales up 93.21% over the same period in
2009 to Bht. 8,204 million. The record
earnings are driven by strong demand globally across all its business lines,
resulting in higher integrated margins. The company’s business model of global operations, scale
and integration delivered robust growth in both revenues and earnings. The
depth of its integration allows to capture margins in the Polyester Value
Chain, while scale provides for a competitive cost structure.
FINANCIAL INFORMATION
The
capital was originally
registered at Bht. 100,000
divided into 1,000
shares of Bht.
100 each.
The
capital was increased
later as followings:
Bht.
80 million on
July 30, 1987
Bht.
600 million on
December 28, 1987
Bht.
750
million on November
11, 1988
Bht.
900
million on November
22, 1989
Bht. 1,000
million on August
22, 1990
Bht. 1,500
million on July
21, 1992
Bht. 1,800
million on July
15, 1993
Bht. 2,100
million in 1996
Bht. 2,300
million in 1997
Bht. 2,800
million in 1998
Bht. 2,960
million on August
14, 2003
The
latest registered capital
was decreased to
Bht. 2,226,220,000 divided
into 2,226,220,000 shares
of Bht. 1
each with Bht. 2,202,850,000 paid-up.
MAIN SHAREHOLDERS
[as
at April 20,
2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Indorama Ventures Co.,
Ltd. |
1,430,636,976 |
64.94 |
|
Indorama Holdings Co.,
Ltd. |
762,428,437 |
34.61 |
|
Mycene Holdings [B.V.I.] Ltd. |
2,017,899 |
0.09 |
|
Others |
7,766,688 |
0.36 |
Total Shareholders : 852
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Veerachai
Ratanacharaskul No. 4323
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and cash
equivalents |
162,855,066 |
25,015,749 |
|
Trade account receivable |
1,710,568,003 |
1,718,641,232 |
|
Inventories |
2,114,259,587 |
1,565,213,140 |
|
Other current assets
|
279,294,944 |
373,294,164 |
|
|
|
|
|
Total Current Assets
|
4,266,977,600 |
3,682,164,285 |
|
|
|
|
|
Deposits at financial institution with restrictions |
7,180,757 |
7,140,873 |
|
Property, plant and equipment |
6,579,294,997 |
4,567,626,305 |
|
Intangible assets |
329,738 |
1,023,940 |
|
Other assets |
52,052,433 |
46,258,217 |
|
Total Assets |
10,905,835,525 |
8,304,213,620 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank overdraft and
short-term loans from Financial institutions |
239,136,435 |
1,927,072,558 |
|
Trade account payable
|
2,576,158,636 |
2,460,671,065 |
|
Short-term loan to parent
company |
636,400,000 |
- |
|
Current portion of long-term
loan from bank |
415,140,000 |
140,000,000 |
|
Current portion of long-term
accrued interest under debt
restructuring agreement |
47,379,310 |
60,841,740 |
|
Current portion of finance
lease contract liabilities |
12,502,030 |
12,399,092 |
|
Current portion of long-term
payable for machinery |
10,906,668 |
- |
|
Other Current Liabilities |
281,982,123 |
233,658,365 |
|
|
|
|
|
Total Current Liabilities |
4,219,605,202 |
4,834,642,820 |
|
Long-term loan from
parent company |
32,000,000 |
- |
|
Long-term loan from
bank |
2,235,180,000 |
1,328,630,000 |
|
Long-term accrued interest
under debt restructuring agreement |
89,069,898 |
115,654,695 |
|
Finance lease contract
liabilities |
46,872,745 |
58,519,585 |
|
Long-term payable for
machinery |
19,086,669 |
- |
|
Total Liabilities |
6,641,814,514 |
6,337,447,100 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital |
|
|
|
Registered |
|
|
|
2,226,220,000 ordinary
shares of Baht 1 each |
2,226,220,000 |
2,226,220,000 |
|
|
|
|
|
Issued & Fully Paid 2,202,850,000 ordinary shares
of Baht 1
each |
2,202,850,000 |
2,202,850,000 |
|
Share premium |
96,495,000 |
96,495,000 |
|
Revaluation surplus
on assets |
1,342,198,767 |
866,414,796 |
|
Revaluation surplus
of changes in values of investments invested
by an associate
|
[907,144,640] |
[907,144,640] |
|
Retained Earnings Appropriated for
statutory reserve |
20,280,333 |
- |
|
Unappropriated [Deficit] |
1,509,341,551 |
[291,848,636] |
|
Total Shareholders' Equity |
4,264,021,011 |
1,966,766,520 |
|
Total Liabilities &
Shareholders' Equity |
10,905,835,525 |
8,304,213,620 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales |
15,586,788,790 |
8,791,502,560 |
|
Reversal of provision for
loss from diminution |
1,294,129,519 |
- |
|
Gain from exchange
rate |
79,067,803 |
1,932,859 |
|
Gain from debt
restructuring |
- |
6,169,170 |
|
Gain from disposal
of land, building & equipment |
1,684,567 |
14,999 |
|
Interest income |
1,186,088 |
416,374 |
|
Other income |
82,065,145 |
40,242,013 |
|
Total Revenues |
17,044,921,912 |
8,840,277,975 |
|
Expenses |
|
|
|
|
|
|
|
Cost of sales
|
14,191,262,500 |
8,663,477,157 |
|
Selling expenses |
701,147,808 |
476,939,746 |
|
Administrative expenses |
122,957,859 |
63,123,212 |
|
Executives’ remuneration |
2,810,000 |
12,060,000 |
|
Total Expenses |
15,018,178,167 |
9,127,835,719 |
|
|
|
|
|
Income [loss] before
financial cost |
2,026,743,745 |
[183,789,764] |
|
Financial cost |
[112,753,525] |
[73,265,165] |
|
|
|
|
|
Net Profit / [Loss] |
1,913,990,220 |
[257,054,929] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.01 |
0.76 |
|
QUICK RATIO |
TIMES |
0.44 |
0.36 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.37 |
1.92 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.43 |
1.06 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
54.38 |
65.94 |
|
INVENTORY TURNOVER |
TIMES |
6.71 |
5.54 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
40.06 |
71.35 |
|
RECEIVABLES TURNOVER |
TIMES |
9.11 |
5.12 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
66.26 |
103.67 |
|
CASH CONVERSION CYCLE |
DAYS |
28.18 |
33.63 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
91.05 |
98.54 |
|
SELLING & ADMINISTRATION |
% |
5.29 |
6.14 |
|
INTEREST |
% |
0.72 |
0.83 |
|
GROSS PROFIT MARGIN |
% |
18.31 |
2.01 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
13.00 |
(3.27) |
|
NET PROFIT MARGIN |
% |
12.28 |
(2.92) |
|
RETURN ON EQUITY |
% |
44.89 |
(13.07) |
|
RETURN ON ASSET |
% |
17.55 |
(3.10) |
|
EARNING PER SHARE |
BAHT |
0.87 |
(0.12) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.61 |
0.76 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.56 |
3.22 |
|
TIME INTEREST EARNED |
TIMES |
17.97 |
(3.92) |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
77.29 |
|
|
OPERATING PROFIT |
% |
(804.81) |
|
|
NET PROFIT |
% |
844.58 |
|
|
FIXED ASSETS |
% |
44.04 |
|
|
TOTAL ASSETS |
% |
31.33 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
18.31 |
Impressive |
Industrial Average |
16.39 |
|
Net Profit Margin |
12.28 |
Impressive |
Industrial Average |
1.33 |
|
Return on Assets |
17.55 |
Impressive |
Industrial Average |
1.58 |
|
Return on Equity |
44.89 |
Impressive |
Industrial Average |
2.20 |
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. The company’s figure is 18.31%. When compared with the industry
average, the ratio of the company was higher. This 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. The company’s figure is 12.28%,
higher figure when 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. Return on Assets ratio is
17.55%, 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.
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 ratio
is 44.89%, 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 Uptrend
Return on Equity Downtrend
LIQUIDITY RATIO
|
Current Ratio |
1.01 |
Acceptable |
Industrial Average |
1.45 |
|
Quick Ratio |
0.44 |
|
|
|
|
Cash Conversion Cycle |
28.18 |
|
|
|
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 1.01 times in 2010, increase from 0.76 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 0.44 times in 2010,
increase from 0.36 times, then the company has not enough current assets that
presumably can be quickly converted to cash for pay financial obligations.
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 29 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.61 |
Acceptable |
Industrial Average |
0.50 |
|
Debt to Equity Ratio |
1.56 |
Risky |
Industrial Average |
0.94 |
|
Times Interest Earned |
17.97 |
Impressive |
Industrial Average |
1.72 |
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 17.98 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 0.61 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 |
2.37 |
Impressive |
Industrial Average |
2.14 |
|
Total Assets Turnover |
1.43 |
Impressive |
Industrial Average |
1.11 |
|
Inventory Conversion Period |
54.38 |
|
|
|
|
Inventory Turnover |
6.71 |
Impressive |
Industrial Average |
3.64 |
|
Receivables Conversion Period |
40.06 |
|
|
|
|
Receivables Turnover |
9.11 |
Impressive |
Industrial Average |
5.08 |
|
Payables Conversion Period |
66.26 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.94 |
|
|
1 |
Rs.71.91 |
|
Euro |
1 |
Rs.64.60 |
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 Business |
-- |
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.