MIRA INFORM REPORT
|
Report Date : |
17.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
FLAWLESS CO., LTD. |
|
|
|
|
Registered Office : |
Room 1909-1911, 19th Floor, Jewelry Trade Center, 919/245-247, Silom Road, Silom, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
1985 |
|
|
|
|
Reg. No.: |
0105528041715 [Former :
4171/2528] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Exporter &
Distributor of Diamonds,
Gems and Jewelry
Products |
|
|
|
|
No. of Employees : |
25 |
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 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
thailand - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand enjoyed solid growth from 2000 to 2007 - averaging more than 4% per year - as it recovered from the Asian financial crisis of 1997-98. Thai exports - mostly machinery and electronic components, agricultural commodities, and jewelry - continue to drive the economy, accounting for more than half of GDP. The global financial crisis of 2008-09 severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. In 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded from their depressed 2009 level. Steady economic growth at just below 4% during the first three quarters of 2011 was interrupted by historic flooding in October and November in the industrial areas north of Bangkok, crippling the manufacturing sector and leading to a revised growth rate of only 0.1% for the year. The industrial sector is poised to recover from the second quarter of 2012 onward, however, and the government anticipates the economy will probably grow between 5.5 and 6.5% for 2012, while private sector forecasts range between 3.8% and 5.7%.
|
Source : CIA |
Company
name
FLAWLESS CO., LTD.
SUMMARY
BUSINESS ADDRESS : ROOM
1909-1911, 19th FLOOR,
JEWELRY
TRADE CENTER,
919/245-247,
SILOM ROAD, SILOM,
BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2630-0444-6, 2235-9664
FAX : [66] 2630-0443,
2237-8562
E-MAIL ADDRESS : flawless@flawlesscompany.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1985
REGISTRATION NO. : 0105528041715 [Former : 4171/2528]
TAX ID NO. : 3101369687
CAPITAL REGISTERED : BHT.
90,000,000
CAPITAL PAID-UP : BHT.
90,000,000
SHAREHODER’S PROPORTION : THAI
: 51%
INDIAN : 49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SUNIL KOTHARI, INDIAN
PRESIDENT
NO. OF STAFF : 25
LINES OF BUSINESS : DIAMONDS, GEMS
AND JEWELRY PRODUCTS
IMPORTER, EXPORTER
& DISTRIBUTOR
CORPORATE
PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was established on
November 29, 1985 as a private
limited company under
the name style
FLAWLESS CO., LTD, by Thai
and Indian groups,
in order to
import, distribute and export
diamonds, gems and
jewelry products. It currently
employs 25 staff.
The subject’s registered
address was Room
1909-1910, 19th
Floor, Jewelry Trade Center,
919/245-246 Silom Rd.,
Silom, Bangrak, Bangkok 10500.
In 2010, its
registered address was
relocated to Room
1909-1911, 19th Floor,
Jewelry Trade Center,
919/245-247 Silom Rd., Silom, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sunil Kothari
|
|
Indian |
50 |
|
Mr. Alongkorn Bovonveerakij |
|
Thai |
60 |
|
Mr. Poonam Chand
Kothari |
|
Indian |
44 |
AUTHORIZED
PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Sunil Kothari
is the President.
He is Indian
nationality with the
age of 50
years old.
Mr. Poonam Chand Kothari
is the Managing
Director.
He is Indian
nationality with the
age of 44
years old.
Mr. Alongkorn Bovonveerakij
is the Executive
Director.
He is Thai
nationality with the
age of 60
years old.
Mrs. Panvadee Bovonveerakij
is the Assistant
Managing Director.
She is Thai
nationality.
BUSINESS
OPERATIONS
The subject’s activities
are importer and distributor
of diamonds, gems
and precious stones
to local jewelry
industry, as well
as exporter of
Thai’s cutting diamonds
and jewelry products.
PURCHASE
Diamonds and precious
stones are purchased
from both local
and overseas suppliers
in India, Belgium,
Hong Kong, Israel
and South Africa.
MAJOR
SUPPLIERS
Flawless Diamond [India]
Ltd. : India
Concorde International Ltd. : India
SALES
[LOCAL]
80% of the
products is sold
locally by wholesale
to local traders
and manufacturers.
EXPORT
20% of the
products is exported
to Hong Kong,
Japan, Indonesia, U.S.A.,
Republic of China
and European countries.
SUBSIDIARY
AND AFFILIATED COMPANY
The subject is not found to have
any subsidiary or
affiliated company here
in Thailand.
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
according to IRICO’S
DATABASE for the
past two years.
CREDIT
Sales are by
cash or the
credit term of
30-60 days.
Local bills are
paid by cash
or on the
credit term of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office : 333 Silom
Rd., Silom, Bangrak,
Bangkok]
EMPLOYMENT
The subject employs
25 staff [office
and sales staff].
LOCATION
DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in a prime commercial area.
COMMENT
The subject is a leading
supplier of diamonds
and precious stones
in local market
for many years. With long experience
and focusing on high valued
products to respond
to customer demands
has enabled its
business a stability
and sustainable growth.
FINANCIAL
INFORMATION
The capital was
initially registered at Bht.
1,000,000 divided into 1,000 shares of
Bht. 1,000 each.
The capital was increased later as follows:
Bht 16,000,000 on
October 25, 1995
Bht. 25,000,000 on March 14,
2006
Bht. 45,000,000 on
June 29, 2007
Bht. 60,000,000 on
June 5, 2008
Bht. 80,000,000 on
October 10, 2008
Bht. 90,000,000 on
March 4, 2009
The latest registered
capital was increased
to Bht. 90,000,000 divided into
90,000 shares of
Bht. 1,000 each with
fully paid.
THE SHAREHOLDERS LISTED WERE
[as at September
11, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Sunil Kothari Nationality: Indian Address : 919/245-247
Silom Rd., Silom,
Bangrak
Bangkok 10500 |
21,500 |
23.89 |
|
Mr. Poonam Chand
Kothari Nationality: Indian Address : 919/245-247
Silom Rd., Silom,
Bangrak
Bangkok 10500 |
18,100 |
20.11 |
|
Mrs. Panwadee Bovonveerakij Nationality: Thai Address : 19/62
Moo 2, Ladprao, Bangkok |
13,000 |
14.44 |
|
Mr. Alongkorn Bovonveerakij Nationality: Thai Address : 19/62
Moo 2, Ladprao, Bangkok
|
10,000 |
11.11 |
|
Mrs. Chotika Khantachawana Nationality: Thai Address : 1298/489
Rama 3 Rd.,
Chongnonsi,
Yannawa, Bangkok |
5,900 |
6.56 |
|
Ms. Suchanart Chokechaicharoen Nationality: Thai Address : 74/433
Ramkhamhaeng 180 Rd.,
Minburi, Bangkok |
5,000 |
5.57 |
|
Mr. Siddharth Kothari Nationality: Indian Address : C-106
Jhankar Bhawan, Savitri
Path, Bapu Nagar,
Jaipur, India |
4,500 |
5.00 |
|
Mr. Pattapol Bovonveerakij Nationality: Thai Address : 19/62
Moo 2, Ladprao, Ladprao, Bangkok |
4,000 |
4.44 |
|
Mr. Chinapat Bovonveerakij Nationality: Thai Address : 19/62
Moo 2, Ladprao, Ladprao,
Bangkok |
4,000 |
4.44 |
|
Ms. Aim-orn Sak-arpha Nationality: Thai Address :
59/17 Moo 4,
Bangtalad, Pakkred, Nonthaburi |
4,000 |
4.44 |
Total Shareholders : 10
Share
Structure
[as at September
11, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
45,900 |
51.00 |
|
Foreign - Indian |
3 |
44,100 |
49.00 |
|
Total |
10 |
90,000 |
100.00 |
NAME
OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mr. Aniruth Ngamrungkij
No. 3730
BALANCE
SHEET [BAHT]
The latest financial
figures published for
December 31, 2011
and 2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
5,189,821.26 |
861,852.09 |
|
Trade Accounts Receivable |
153,077,718.42 |
218,547,527.25 |
|
Inventories |
159,679,441.80 |
145,640,975.80 |
|
Other Current Assets
|
576,032.11 |
753,820.50 |
|
Total Current Assets
|
318,523,013.59 |
365,804,175.64 |
|
|
|
|
|
Fixed Deposit |
2,119,750.50 |
2,213,067.73 |
|
Fixed Assets |
2,137,575.50 |
2,658,769.05 |
|
Total Assets |
322,780,339.59 |
370,676,012.42 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institutions |
68,464,284.40 |
62,224,635.59 |
|
Trade Accounts Payable |
130,921,339.36 |
182,302,720.66 |
|
Other Payable |
175,044.25 |
181,306.30 |
|
Accrued Income Tax |
- |
4,429,167.55 |
|
Accrued Expenses |
439,759.06 |
744,563.89 |
|
Other Current Liabilities |
1,816,029.17 |
2,771,864.45 |
|
Total Current Liabilities |
201,816,456.24 |
252,654,258.44 |
|
Total Liabilities |
201,816,456.24 |
252,654,258.44 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 90,000 shares |
90,000,000.00 |
90,000,000.00 |
|
Capital Paid |
90,000,000.00 |
90,000,000.00 |
|
Retained Earning Appropriated for
Statutory Reserve |
9,000,000.00 |
9,000,000.00 |
|
Unappropriated |
21,963,883.35 |
19,021,753.98 |
|
Total Shareholders' Equity |
120,963,883.35 |
118,021,753.98 |
|
Total Liabilities & Shareholders' Equity |
322,780,339.59 |
370,676,012.42 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
759,308,037.17 |
615,183,269.01 |
|
Gain on Exchange
Rate |
- |
10,198,550.11 |
|
Other Income |
135,129.89 |
607,181.85 |
|
Total Revenues |
759,443,167.06 |
625,989,000.97 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
716,768,609.03 |
572,710,865.67 |
|
Selling Expenses |
11,576,421.84 |
13,307,885.56 |
|
Administrative Expenses |
18,839,733.09 |
16,815,331.09 |
|
Loss on Exchange
Rate |
1,838,499.67 |
- |
|
Total Expenses |
749,023,263.63 |
602,834,082.32 |
|
Profit / [Loss] Before Financial Cost & Income Tax |
10,419,903.43 |
23,154,918.65 |
|
Financial Cost |
[6,023,179.26] |
[4,770,189.65] |
|
Profit / [Loss] Before Income
Tax |
4,396,724.17 |
18,384,729.00 |
|
Income Tax |
[1,454,594.80] |
[5,629,280.38] |
|
Net Profit / [Loss] |
2,942,129.37 |
12,755,448.62 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.58 |
1.45 |
|
QUICK RATIO |
TIMES |
0.78 |
0.87 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
355.22 |
231.38 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.35 |
1.66 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
81.31 |
92.82 |
|
INVENTORY TURNOVER |
TIMES |
4.49 |
3.93 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
73.58 |
129.67 |
|
RECEIVABLES TURNOVER |
TIMES |
4.96 |
2.81 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
66.67 |
116.19 |
|
CASH CONVERSION CYCLE |
DAYS |
88.23 |
106.30 |
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
94.40 |
93.10 |
|
SELLING & ADMINISTRATION |
% |
4.01 |
4.90 |
|
INTEREST |
% |
0.79 |
0.78 |
|
GROSS PROFIT MARGIN |
% |
5.62 |
8.66 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.37 |
3.76 |
|
NET PROFIT MARGIN |
% |
0.39 |
2.07 |
|
RETURN ON EQUITY |
% |
2.43 |
10.81 |
|
RETURN ON ASSET |
% |
0.91 |
3.44 |
|
EARNING PER SHARE |
BAHT |
32.69 |
141.73 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.63 |
0.68 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.67 |
2.14 |
|
TIME INTEREST EARNED |
TIMES |
1.73 |
4.85 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
23.43 |
|
|
OPERATING PROFIT |
% |
(55.00) |
|
|
NET PROFIT |
% |
(76.93) |
|
|
FIXED ASSETS |
% |
(19.60) |
|
|
TOTAL ASSETS |
% |
(12.92) |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
5.62 |
Acceptable |
Industrial Average |
9.66 |
|
Net Profit Margin |
0.39 |
Impressive |
Industrial Average |
(0.20) |
|
Return on Assets |
0.91 |
Impressive |
Industrial Average |
(0.27) |
|
Return on Equity |
2.43 |
Impressive |
Industrial Average |
(0.72) |
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 5.62%. When compared with
the industry average, the ratio of the company was lower, indicated that
company was originated from the problems with control over its costs.
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 0.39%, 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 0.91%, 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 2.43%, 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 Stable
LIQUIDITY
RATIO
|
Current Ratio |
1.58 |
Satisfactory |
Industrial Average |
1.72 |
|
Quick Ratio |
0.78 |
|
|
|
|
Cash Conversion Cycle |
88.23 |
|
|
|
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 1.58 times in 2011, increased from 1.45 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 0.78 times in 2011,
decreased from 0.87 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 89 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE
RATIO
|
Debt Ratio |
0.63 |
Acceptable |
Industrial Average |
0.60 |
|
Debt to Equity Ratio |
1.67 |
Risky |
Industrial Average |
1.67 |
|
Times Interest Earned |
1.73 |
Impressive |
Industrial Average |
0.63 |
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 1.73 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 0.63 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 Uptrend
Times Interest Earned Uptrend
ACTIVITY
RATIO
|
Fixed Assets Turnover |
355.22 |
Impressive |
Industrial Average |
10.73 |
|
Total Assets Turnover |
2.35 |
Impressive |
Industrial Average |
1.47 |
|
Inventory Conversion Period |
81.31 |
|
|
|
|
Inventory Turnover |
4.49 |
Impressive |
Industrial Average |
2.17 |
|
Receivables Conversion Period |
73.58 |
|
|
|
|
Receivables Turnover |
4.96 |
Impressive |
Industrial Average |
3.31 |
|
Payables Conversion Period |
66.67 |
|
|
|
Trend of the average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
DIAMOND INDUSTRY –
INDIA
-
From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of
diamonds but history says that in the remote past, diamonds were mined only in
India. Diamond production in India can be traced back to almost 8th
Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
-
The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
-
Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
-
Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
-
The diamond jewellery industry in India today may be
more than Rs 60000 mil and is rated amongst the fastest growing in the
world. Indi ranks third in the world in domestic diamond consumption.
-
Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
-
Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.39 |
|
|
1 |
Rs.87.78 |
|
Euro |
1 |
Rs.71.29 |
INFORMATION DETAILS
|
Report
Prepared by : |
SDA |
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.