MIRA
INFORM REPORT
|
Report Date : |
28.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
THAI ACRYLIC FIBRE CO., LTD. |
|
|
|
|
Registered Office : |
16th Floor, Mahatun Plaza Building, 888/168-169 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
10.04.1987 |
|
|
|
|
Com. Reg. No.: |
0105530016978 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor & Exporter of Acrylic Fibre |
|
|
|
|
No. of Employees : |
500 |
RATING & COMMENTS
|
MIRAs Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
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 September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
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
THAI
ACRYLIC FIBRE CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 16th FLOOR,
MAHATUN PLAZA BUILDING,
888/168-169 PLOENCHIT
ROAD, LUMPINI,
PATHUMWAN, BANGKOK
10330, THAILAND
TELEPHONE : [66] 2253-6745-54
FAX :
[66] 2253-4679,
2253-6734
E-MAIL
ADDRESS : marketing@thaiacrylic.com
nkdalan@thaiacrylic.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1987
REGISTRATION
NO. : 0105530016978 [Former: 1695/2530]
CAPITAL REGISTERED : BHT. 712,500,000
CAPITAL PAID-UP : BHT.
712,500,000
SHAREHOLDERS PROPORTION : THAI :
83.59%
FOREIGN :
16.41%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
NIRINT SAJDEV, THAI
PRESIDENT
AND CHIEF EXECUTIVE
OFFICER
NO.
OF STAFF : 500
LINES
OF BUSINESS : ACRYLIC FIBRE
MANUFACTURER, DISTRIBUTOR
& 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
established on April
10, 1987 as
a private limited
company under the name style THAI
ACRYLIC FIBRE CO.,
LTD. The subject
is the flagship company of
the Aditya Birla
Group set up
in technical collaboration with
Japan Exlan Co., Ltd., to manufacture
acrylic fibre by
being granted the promotional
privilege from the Board
of Investment [BOI].
Its production facility
is located in
Kaengkhoi, Saraburi Province. The
subject currently employs
approximately 500 staff.
The subject achieved
ISO 14001 and OHSAS
18001 certifications for
safety, health and
environmental system.
The subject is
a subsidiary of
India-based Aditya Birla
Group, the first
synthetic yarn plant
in Thailand which
came on stream
in 1970.
The subject is
also the first
acrylic fibre manufacturer
in ASEAN, and
one of the
top two service
providers of acrylic
application development.
The
subjects registered address
is 16th Floor,
Mahatun Plaza Building, 888/168-169 Ploenchit
Rd., Lumpini, Pathumwan,
Bangkok 10330, and
this is the
subjects current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Shyam Sunder
Mahansaria |
|
Indian |
77 |
|
Mr. Nirint Sajdev |
|
Thai |
73 |
|
Mrs. Ratchanee Kajiji |
|
Thai |
71 |
|
Mr. Kumara Mangalam
Birla : Chairman
of the Group |
|
Indian |
46 |
|
Mrs. Rajashree Birla |
|
Indian |
66 |
|
Mr. Songkram Chivapravatdamrong |
|
Thai |
68 |
|
Mr. Hari Krishna
Agarwal |
|
Indian |
53 |
|
Mr. Cavas Jehangir Lalkaka |
|
Indian |
55 |
|
Mr. Krishna Kishore
Maheehwari |
|
Indian |
57 |
|
Mr. Vikram Dhondu Rao |
|
Indian |
62 |
AUTHORIZED PERSON
Two of the
above directors can
jointly sign on
behalf of the
subject with companys
affixed.
MANAGEMENT
Mr. Nirint Sajdev
is the President & Chief Executive
Officer.
He is Thai
nationality with the
age of 73
years old.
Mr. Krishna Kishore
Maheehwari is the
Vice President - Technical.
He is Indian
nationality with the
age of 57
years old.
Mr. N.K. Dalan
is the Vice
President - Commercial.
He is Indian
nationality.
Mr. Rituraj Shah is
the Vice President
- Engineering.
He is Indian
nationality.
Mr. Lahvindra Singh
is the Vice President
- Manufacturing.
He is Indian
nationality.
Mr. Anil Kumar
is the Vice
President - Marketing & Sales
Manager.
He is Indian
nationality.
Mr. Pirom Areephan is
the General Manager.
He is Thai
nationality.
Ms. Karuna Choonint is
the Human Resources
Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing wide range
of Acrylic Fibre
and Acrylic Tow
from Micro Denier
0.8 to 15 denier and
staple lengths, in
the range of
38 to 150
mm. for spinning
in cotton, modified cotton,
semi-worsted, and worsted
spinning system. The
products are used
in Textile, Knitwear,
Carpet, Toys, Blanket
and Apparel industries.
The subject has
received the production
technology from Japan
Exlan Co., Ltd., Japan.
There are more
than 30 different
forms of fibre
and tow for multiple
end uses including
socks, pullovers, rugs
and carpets.
BRAND NAME
TEXLAN
PRODUCTION CAPACITY
100,000 tons per
annum
IMPORT [COUNTRIES]
Raw material, chemical, cotton and computer technology
are imported from
Japan, Hong Kong, Republic of China, Taiwan,
Singapore, India, Switzerland,
United States of America and European
countries.
MAJOR SUPPLIERS
Gutor Electronic Ltd. : Switzerland
Thai Rayon Public Co., Ltd. :
Thailand
Thai Sulphites and Chemicals Co., Ltd. : Thailand
SALES [LOCAL]
15% of its
products is sold
locally by wholesale
to manufacturers and
end-users.
EXPORT [COUNTRY]
85% of products is
exported to India,
Indonesia, Philippines, Republic of China, Pakistan,
Iran, Vietnam, Nepal, Australia, Bangladesh, South
African, South Korea,
Sri Lanka, Turkey and
other countries in
Europe.
RELATED &
AFFILIATED COMPANIES
The Aditya Birla
Group; consists of:
Indo Thai Synthetics
Co., Ltd.
Business Type : Manufacturer of
synthetics yarn
Thai Rayon Public
Co., Ltd.
Business Type : Manufacturer of
viscose rayon staple
fibre and anhydrous
sodium sulphate
Thai Carbon Black Public Co., Ltd.
Business Type : Manufacturer of
carbon black
Thai Polyphosphate & Chemicals Co., Ltd.
Business Type : Manufacturer of
sodium tripoly - phosphate
Thai Epoxy and Allied
Products Co., Ltd
Business Type : Manufacturer of
expoxy resin
Thai Sulphites &
Chemicals Co., Ltd.
Business Type : Manufacturer of
sulphate
P.T. Indo Liberty
Textile Co., Ltd.
Business Type : Manufacturer of
spun yarn
Thai Peroxide Co., Ltd.
Business Type : Manufacturer of
hydrogen peroxide
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
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight or
T/T.
BANKING
Deutsche Bank AG
[Bangkok Office : 208
Wireless Rd., Lumpini,
Pathumwan, Bangkok 10330]
The Siam Commercial
Bank Public Co., Ltd.
[Head Office
: 9 Ratchadapisek
Rd., Ladyao, Jatujak,
Bangkok 10900]
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok 10500]
Kasikornbank Public Co., Ltd.
[Head Office
: 1 Kasikorn
Lane, Rajburana Rd.,
Rajburana, Bangkok 10140]
EMPLOYMENT
The subject employs
approximately 500 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address in a
prime commercial area.
The factory is
located at 54
Moo 5, Sudbantad,
Tarndiew, Kaengkhoi, Saraburi Province 18110 Thailand,
on approximately 160,000
square meters plot of
land.
Tel : [66] 36
251-316-24, 36 240-100
Fax : [66]
36 251-325-6
REMARK
MAXIMUM CREDIT SHOULD
BE GRANTED AT
US$ 10,000,000.
COMMENT
Texlan is produced at TAFs state-of-the-art plant, which has highly sophisticated machineries,
equipments and computer
technology which are
mainly sourced from Japan,
Europe and USA.
The combination of cutting
edge technology, the
TQM system and
employees commitment to
total customer satisfaction, makes Textan
a
first choice product
for both commodity and
specialty end products
on both local
and international markets.
Despite economic slowdown in
the past few years,
subject has been
experienced a strong sales
volumes in both
domestic and foreign
markets as industrial
consumption continued to
grow.
FINANCIAL INFORMATION
The capital was registered
at Bht. 205,000,000 divided into
2,050,000 shares of
Bht. 100 each.
The capital was increased later
as followings :
Bht. 570,000,000
on October 21,
1993
Bht. 712,500,000
on April 23,
1996
The latest registered
capital was increased
to Bht. 712,500,000
divided into 71,250,000
shares of Bht.
10 each with
fully paid.
MAIN SHAREHOLDERS : [as at
April 29, 2011]
|
NAME |
HOLDING |
% |
|
Thai Rayon Public
Co., Ltd. Nationality: Thai Address : 888/160-161 Ploenchit
Rd.,
Lumpini, Pathumwan, Bangkok
10330 |
21,373,173 |
30.00 |
|
Thai Carbon Black
Public Co., Ltd. Nationality: Thai Address : 888/160-161 Ploenchit
Rd.,
Lumpini, Pathumwan, Bangkok
10330 |
11,452,203 |
16.07 |
|
Mr. Songkram Chivapravatdamrong Nationality: Thai Address : 470 Bangkhunthienchaitalay Rd.,
Samaedam, Bangkhunthien, Bangkok |
8,906,250 |
12.50 |
|
Asseau Company Ltd.
Nationality: British Address : Barclays House
Wickhams Cay Road
Town, Tortola, BVI |
6,175,000 |
8.67 |
|
Mrs. Ratchanee Kajiji Nationality: Thai Address : 45 Anuwong Rd., Chakrawad,
Samphantawong, Bangkok 10100 |
3,274,100 |
4.59 |
|
Centex International Pte. Ltd.
Nationality: Singaporean Address : Pat Brox 01-04
High Street Plaza, Singapore |
1,826,923 |
2.56 |
|
Mr. Kamol Pichitsingh Nationality: Thai Address : 83/1 Sukhumvit
Rd., Klongtoey, Bangkok |
1,278,846 |
1.79 |
|
Other Shareholders |
16,963,505 |
23.82 |
Total Shareholders : 103
Share Structure [as
at April 29,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
84 |
59,554,948 |
83.59 |
|
Foreign |
19 |
11,695,052 |
16.41 |
|
Total |
103 |
71,250,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Vichien Kingmontri No.
3977
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalents |
6,497,671 |
9,876,161 |
|
Trade Accounts Receivable |
1,252,458,725 |
812,880,872 |
|
Related Company Receivable |
68,554,253 |
10,836,112 |
|
Inventories |
1,119,652,658 |
1,045,912,211 |
|
Other Current Assets
|
150,865,499 |
207,615,180 |
|
|
|
|
|
Total Current Assets |
2,598,028,806 |
2,087,120,536 |
|
Investment in Related
Company |
504,060,714 |
504,060,714 |
|
Fixed Assets |
2,404,875,228 |
2,723,249,095 |
|
Other Assets |
3,617,030 |
4,066,935 |
|
Total Assets |
5,510,581,778 |
5,318,497,280 |
LIABILITIES &
SHAREHOLDERS EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Bank |
177,262,062 |
250,601,410 |
|
Trade Accounts Payable |
1,354,770,123 |
1,212,689,274 |
|
Related Company Payable |
2,192,654 |
4,312,395 |
|
Other Payable |
12,456,785 |
16,582,903 |
|
Current Portion of Long-term
Loan |
367,500,000 |
380,000,000 |
|
Accrued Expenses |
37,544,900 |
39,132,729 |
|
Accrued Income Tax |
66,948,458 |
- |
|
Advance Received from Customer |
25,359,135 |
6,455,524 |
|
Other Current Liabilities |
6,795,921 |
5,836,492 |
|
|
|
|
|
Total Current Liabilities |
2,050,830,038 |
1,915,610,727 |
|
Long-term Loan |
270,000,000 |
637,500,000 |
|
Total Liabilities |
2,320,830,038 |
2,553,110,727 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 10
par value Authorized, issued
& fully paid-up
share capital 71,250,000
shares |
712,500,000 |
712,500,000 |
|
|
|
|
|
Capital Paid |
712,500,000 |
712,500,000 |
|
Premium on Share
Capital |
603,000,000 |
603,000,000 |
|
Retained Earning Appropriated for
Statutory Reserve |
71,250,000 |
71,250,000 |
|
Unappropriated |
1,803,001,740 |
1,378,636,553 |
|
Total Shareholders' Equity |
3,189,751,740 |
2,765,386,553 |
|
Total Liabilities & Shareholders' Equity |
5,510,581,778 |
5,318,497,280 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales Income |
8,607,869,460 |
6,307,843,438 |
|
Gain / [Loss] on Exchange
Rate |
92,097,224 |
31,440,825 |
|
Other Income |
43,068,212 |
108,390,539 |
|
Total Revenues |
8,743,034,896 |
6,447,674,802 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
7,900,609,695 |
5,529,131,880 |
|
Selling Expenses |
156,352,040 |
141,269,198 |
|
Administrative Expenses |
61,333,602 |
63,498,389 |
|
Total Expenses |
8,118,295,337 |
5,733,899,467 |
|
|
|
|
|
Profit before Financial Cost &
Income Tax |
624,739,559 |
713,775,335 |
|
Financial Cost |
[39,970,140] |
[85,274,966] |
|
Profit before Income
Tax |
584,769,419 |
628,500,369 |
|
Income Tax |
[89,154,232] |
- |
|
|
|
|
|
Net Profit / [Loss] |
495,615,187 |
628,500,369 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.27 |
1.09 |
|
QUICK RATIO |
TIMES |
0.65 |
0.44 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.58 |
2.32 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.56 |
1.19 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
51.73 |
69.04 |
|
INVENTORY TURNOVER |
TIMES |
7.06 |
5.29 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
53.11 |
47.04 |
|
RECEIVABLES TURNOVER |
TIMES |
6.87 |
7.76 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
62.59 |
80.05 |
|
CASH CONVERSION CYCLE |
DAYS |
42.25 |
36.03 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
91.78 |
87.65 |
|
SELLING & ADMINISTRATION |
% |
2.53 |
3.25 |
|
INTEREST |
% |
0.46 |
1.35 |
|
GROSS PROFIT MARGIN |
% |
9.79 |
14.56 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
7.26 |
11.32 |
|
NET PROFIT MARGIN |
% |
5.76 |
9.96 |
|
RETURN ON EQUITY |
% |
15.54 |
22.73 |
|
RETURN ON ASSET |
% |
8.99 |
11.82 |
|
EARNING PER SHARE |
BAHT |
6.96 |
8.82 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.42 |
0.48 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.73 |
0.92 |
|
TIME INTEREST EARNED |
TIMES |
15.63 |
8.37 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
36.46 |
|
|
OPERATING PROFIT |
% |
(12.47) |
|
|
NET PROFIT |
% |
(21.14) |
|
|
FIXED ASSETS |
% |
(11.69) |
|
|
TOTAL ASSETS |
% |
3.61 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
9.79 |
Satisfactory |
Industrial Average |
11.39 |
|
Net Profit Margin |
5.76 |
Impressive |
Industrial
Average |
1.36 |
|
Return on Assets |
8.99 |
Impressive |
Industrial
Average |
2.58 |
|
Return on Equity |
15.54 |
Impressive |
Industrial
Average |
6.65 |
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 9.79%. 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 5.76%,
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
8.99%, 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 15.54%, 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 Uptrend
LIQUIDITY RATIO
|
Current Ratio |
1.27 |
Satisfactory |
Industrial Average |
1.65 |
|
Quick Ratio |
0.65 |
|
|
|
|
Cash Conversion Cycle |
42.25 |
|
|
|
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 1.27 times in 2010, increased from 1.09 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 0.65 times in 2010,
increased from 0.44 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 43 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.42 |
Impressive |
Industrial
Average |
0.58 |
|
Debt to Equity Ratio |
0.73 |
Impressive |
Industrial
Average |
1.32 |
|
Times Interest Earned |
15.63 |
Impressive |
Industrial
Average |
2.17 |
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 15.64 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 0.42 less than 0.5, most of the company's
assets are financed through equity.
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 |
3.58 |
Acceptable |
Industrial
Average |
5.47 |
|
Total Assets Turnover |
1.56 |
Satisfactory |
Industrial
Average |
1.89 |
|
Inventory Conversion Period |
51.73 |
|
|
|
|
Inventory Turnover |
7.06 |
Impressive |
Industrial
Average |
4.49 |
|
Receivables Conversion Period |
53.11 |
|
|
|
|
Receivables Turnover |
6.87 |
Impressive |
Industrial
Average |
3.69 |
|
Payables Conversion Period |
62.59 |
|
|
|
Trend of the average
competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.05 |
|
|
1 |
Rs.77.78 |
|
Euro |
1 |
Rs.65.89 |
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 SCs 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.