MIRA
INFORM REPORT
|
Report Date : |
19.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
REGAL JEWELRY MANUFACTURE COMPANY LIMITED |
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Registered Office : |
84/4 Moo 7,
Soi Petchkasem 122, |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
21.02.1991 |
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Com. Reg. No.: |
0745534000124 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer and Exporter of Jewelry Products |
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No. of Employees : |
3,100 |
RATING & COMMENTS
|
MIRAs Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name
REGAL
JEWELRY MANUFACTURE COMPANY
LIMITED
SUMMARY
BUSINESS
ADDRESS : 84/4
MOO 7, SOI
PETCHKASEM 122,
PETCHKASEM
ROAD, OMNOI, KRATHUMBAN,
SAMUTSAKORN 74130
TELEPHONE : [66] 2420-7440
FAX : [66] 2420-4663,
2420-7445
E-MAIL
ADDRESS : inguiry@regal-jewelry.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1991
REGISTRATION
NO. : 0745534000124 [Former: SOR
KOR. 514]
TAX
ID NO. : 3751006666
CAPITAL REGISTERED : BHT. 455,000,000
CAPITAL PAID-UP : BHT.
455,000,000
SHAREHOLDERS PROPORTION : THAI : 34.91%
TAIWANESE :
65.09%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. PACHARAPOL PAIBOONSUNTHORN, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 3,100
LINES
OF BUSINESS : JEWELRY PRODUCTS
MANUFACTURER 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 established
on February 21, 1991
as a private
limited company under
the name style REGAL JEWELRY
MANUFACTURE COMPANY LIMITED, by
Thai and Taiwanese groups, with
the business objective
to manufacture various
kinds of jewelry
products with BOI
promoted for export.
It currently employs approximate 3,100
staff.
It
also achieved the international standards ISO 9001 : 2000 certification, production
quality system, and
TLS 8001 : 2546
certification and Labor Management
system.
The subjects registered
address is 84/4 Moo 7, Petchkasem 122 Rd., Omnoi, Krathumban,
Samutsakorn 74130, and
this is the
subjects current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Lin, Pi-Yuan |
[x] |
Taiwanese |
62 |
|
Mrs. Lin, Huang A-Yuan |
|
Taiwanese |
61 |
|
Ms. Lin, Yu-Ying [Sara
Lin] |
|
Taiwanese |
39 |
|
Mr. Sarayuth Mungjitvisavakorn |
|
Thai |
47 |
|
Mr. Pacharapol Paiboonsunthorn [Former : Mr. Lin, Chih-Chien] |
[x] |
Thai
|
48 |
*Mr. Lin, Chih-Chien changed
his name to Mr.
Pacharapol Paiboonsunthorn on
August 20,
2010.
AUTHORIZED PERSON
One of the
mentioned directors [x]
can sign on
behalf of the
subject with companys
affixed.
MANAGEMENT
Mr. Pacharapol Paiboonsunthorn is
the Managing Director.
He is Thai
nationality with the
age of 48
years old.
Mr. Sarayuth Mungjitvisavakorn is
the Deputy Managing
Director.
He is Thai
nationality with the
age of 47
years old.
Ms. Lin, Yu-Ying is
the Deputy Managing
Director.
She is Taiwanese
nationality with the
age of 39
years old.
BUSINESS OPERATIONS
The subject is engaged in manufacturing
various types of gold
and silver jewelry
products, which are
divided into 3
main products as
follows:
1. Silver Themes
- Fashion
Cubic Zirconia
- Gemstone
and Semi-Precious Stone
- Plain
Silver
- Diamond
- Plating
- Pearl
and Mother of
Pearl
- Enamel
and Resin
- Alternative
Materials
- Men
Jewelry
2. Costume Themes
- Chandelier
Style
- Cubic
Zirconia
- Diamond
3. Gold Themes
- Created Stones and
Cubic Zirconia
- Diamond
- Gemstone
and Semi-Precious Stone
- Pearl
- Plain
PRODUCTION
2,000,000 million pieces/month
PURCHASE
100% of raw materials such
as precious and semi-precious
stones, equipment and
etc. are purchased
from local suppliers.
EXPORT
100% of
the products is exported to Hong
Kong, Japan, Taiwan, United States of America,
Australia, Russia, Republic of China, Israel, and many countries in
Europe and Middle East.
MAJOR
CUSTOMER
Avon
Products Inc. :
U.S.A.
RELATED AND
AFFILIATED COMPANY
Universal Creation Ltd.
Business Type :
Manufacturer and exporter
of jewelry products.
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
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Exports are against
L/C at sight
or T/T.
BANKING
Kasikornbank Public Co.,
Ltd.
Bangkok Bank Public
Co., Ltd. [Nongkaem
Branch]
EMPLOYMENT
The
subject employs approximately
3,100 office staff
and factory workers.
LOCATION DETAILS
The premise is owned for administrative office
and factory at
the heading address. Premise is
located in industrial
area.
COMMENT
The subject
is the leading manufacturer and exporter
who can produce tremendous varieties of designs for mass costume jewelry market. The increasing demand of costume jewelry both
local and exports has enabled the company to increase and upgrade facilities to
the most unique, high technology machinery and equipment to cope with specific
designs from customers and
international fashion trends.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 8,500,000
divided into 85,000
shares of Bht.
100 each.
The
capital was increased
later as following:
Bht. 65,000,000 on
May 12, 1990
Bht. 120,000,000 on
January 29, 2003
Bht. 320,000,000 on
September 3, 2004
Bht. 455,000,000 on
December 20, 2011
The
latest registered capital
was increased to
Bht. 455,000,000 divided into
4,550,000 shares of
Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at March 1,
2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Pacharapol Paiboonsunthorn Nationality: Thai Address : 2/39
Moo 11, Salathammasop,
Taweewattana, Bangkok |
1,004,981 |
22.09 |
|
Ms. Lin-Yu Ying Nationality: Taiwanese Address :
2/39 Moo 11,
Salathammasop,
Taweewattana, Bangkok |
648,375 |
14.25 |
|
Mr. Sarayuth Mungjitvisavakorn Nationality: Thai Address : 1/76
Kanchanapisek Rd., Bangbon,
Bangkok |
583,538 |
12.82 |
|
Mr. Lin, Pi-Yuan Nationality: Taiwanese Address : 84/4
Moo 7, Petchkasem
122 Rd., Omnoi, Krathumbaen, Samutsakorn |
443,056 |
9.74 |
|
Mrs. Lin, Huang A-Yuan Nationality: Taiwanese Address : 99/88
Moo 4, Bangprom,
Talingchan, Bangkok |
432,250 |
9.50 |
|
Mr. Lin, Chin Sun Nationality: Taiwanese Address : 2/39
Moo 11, Salathammasop,
Taweewattana, Bangkok |
389,025 |
8.55 |
|
Ms. Lin, Yu Ping Nationality: Taiwanese Address : 99/88
Moo 4, Bangprom,
Talingchan, Bangkok |
389,025 |
8.55 |
|
Mr. Wang, Cheng-Long Nationality: Taiwanese Address : 21/315
Boromratchonnee Rd.,
Salathammasop,
Taweewattana, Bangkok |
227,500 |
5.00 |
|
Mr. Lai, Ching-Her Nationality: Taiwanese Address : 7/90
Moo 9, Salathammasop,
Taweewattana, Bangkok |
216,125 |
4.75 |
|
Mrs. Lai, Lin Hsu-Liu Nationality: Taiwanese Address : 7/90
Moo 9, Salathammasop, Taweewattana, Bangkok |
216,125 |
4.75 |
Total Shareholders : 10
Share Structure [as
at March 1,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
1,588,519 |
34.91 |
|
Foreign - Taiwanese |
8 |
2,961,481 |
65.09 |
|
Total |
10 |
4,550,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Anoo Thongkasem No.
5634
Note:
The 2011 financial
statement was not
submitted to the
Commercial Registration Department.
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 & 2009
were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash in Hand
& at Bank |
4,541,596.70 |
31,940,246.45 |
|
Trade Accounts &
Notes Receivable |
319,104,496.25 |
221,647,232.41 |
|
Short-term Loan to
Related Person |
- |
22,227,707.91 |
|
Inventories |
397,545,937.61 |
230,205,480.85 |
|
Other Current Assets
|
16,562,477.79 |
7,908,157.39 |
|
|
|
|
|
Total Current Assets
|
737,754,508.35 |
513,928,825.01 |
|
Cash at Bank
pledged as a
Collateral |
1,654,466.46 |
1,641,535.34 |
|
Long-term Investment in
Subsidiary |
115,000,000.00 |
115,000,000.00 |
|
Fixed Assets |
289,750,391.20 |
278,082,504.64 |
|
Intangible Assets |
3,599,548.79 |
3,782,406.24 |
|
Other Assets |
5,089,047.95 |
447,667.95 |
|
Total Assets |
1,152,847,962.75 |
912,882,939.18 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft & Short-term Loan from Bank |
313,802,345.48 |
291,429,263.52 |
|
Trade Accounts &
Notes Payable |
91,429,562.13 |
36,673,685.32 |
|
Advance Income from
Goods |
153,838,706.24 |
63,500,594.16 |
|
Current Portion of
Hire-purchase Contract Liabilities |
165,750.00 |
165,750.00 |
|
Current Portion of
Finance Lease Contract
Liabilities |
5,947,259.18 |
- |
|
Short-term Loan from
Related Company |
14,747,214.57 |
- |
|
Other Current Liabilities |
36,605,703.67 |
24,393,788.68 |
|
|
|
|
|
Total Current Liabilities |
616,536,541.27 |
416,163,071.68 |
|
Hire-purchase Contract Liabilities |
110,500.00 |
276,250.00 |
|
Finance Lease Contract
Liabilities |
10,845,355.00 |
- |
|
Total Liabilities |
627,492,396.27 |
416,439,321.68 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 3,200,000 shares |
320,000,000.00 |
320,000,000.00 |
|
|
|
|
|
Capital Paid |
320,000,000.00 |
320,000,000.00 |
|
Retained Earning Appropriated for
Statutory Reserve
|
2,000,000.00 |
2,000,000.00 |
|
Unappropriated |
203,355,566.48 |
174,443,617.50 |
|
Total Shareholders' Equity |
525,355,566.48 |
496,443,617.50 |
|
Total Liabilities & Shareholders' Equity |
1,152,847,962.75 |
912,882,939.18 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales |
1,464,789,554.74 |
1,099,415,893.86 |
|
Gain on Exchange
Rate |
30,478,128.39 |
6,165,115.14 |
|
Other Income |
1,571,794.22 |
1,528,063.50 |
|
Total Revenues |
1,496,839,477.35 |
1,107,109,072.50 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,350,900,347.56 |
1,005,634,825.69 |
|
Selling Expenses |
13,692,286.92 |
10,067,368.02 |
|
Administrative Expenses |
78,922,017.75 |
68,639,205.27 |
|
Loss on Disposal
of Assets |
653,928.04 |
2,274,417.91 |
|
Total Expenses |
1,444,168,580.27 |
1,086,615,816.89 |
|
|
|
|
|
Profit / [Loss] before Financial
Cost & Income Tax |
52,670,897.08 |
20,493,255.61 |
|
Financial Cost |
[9,644,824.83] |
[8,407,748.90] |
|
Income Tax |
[14,114,123.27] |
[4,368,187.13] |
|
|
|
|
|
Net Profit / [Loss] |
28,911,948.98 |
7,717,319.58 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.20 |
1.23 |
|
QUICK RATIO |
TIMES |
0.52 |
0.66 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.06 |
3.95 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.27 |
1.20 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
107.41 |
83.55 |
|
INVENTORY TURNOVER |
TIMES |
3.40 |
4.37 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
79.52 |
73.59 |
|
RECEIVABLES TURNOVER |
TIMES |
4.59 |
4.96 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
24.70 |
13.31 |
|
CASH CONVERSION CYCLE |
DAYS |
162.22 |
143.83 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
92.22 |
91.47 |
|
SELLING & ADMINISTRATION |
% |
6.32 |
7.16 |
|
INTEREST |
% |
0.66 |
0.76 |
|
GROSS PROFIT MARGIN |
% |
9.96 |
9.23 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.60 |
1.86 |
|
NET PROFIT MARGIN |
% |
1.97 |
0.70 |
|
RETURN ON EQUITY |
% |
5.50 |
1.55 |
|
RETURN ON ASSET |
% |
2.51 |
0.85 |
|
EARNING PER SHARE |
BAHT |
9.03 |
2.41 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.54 |
0.46 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.19 |
0.84 |
|
TIME INTEREST EARNED |
TIMES |
5.46 |
2.44 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
33.23 |
|
|
OPERATING PROFIT |
% |
157.02 |
|
|
NET PROFIT |
% |
274.64 |
|
|
FIXED ASSETS |
% |
4.20 |
|
|
TOTAL ASSETS |
% |
26.29 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
9.96 |
Acceptable |
Industrial
Average |
13.94 |
|
Net Profit Margin |
1.97 |
Impressive |
Industrial
Average |
0.42 |
|
Return on Assets |
2.51 |
Impressive |
Industrial
Average |
0.66 |
|
Return on Equity |
5.50 |
Impressive |
Industrial
Average |
1.67 |
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 9.96%. When
compared with the industry average, the ratio of the company was lower.
This 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 in 1.97%, 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 2.51%, 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 5.5%, 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 |
1.20 |
Acceptable |
Industrial
Average |
1.64 |
|
Quick Ratio |
0.52 |
|
|
|
|
Cash Conversion Cycle |
162.22 |
|
|
|
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 1.2 times in 2010, decreased from 1.23 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 0.52 times in 2010,
decreased from 0.66 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 163 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.54 |
Impressive |
Industrial
Average |
0.56 |
|
Debt to Equity Ratio |
1.19 |
Acceptable |
Industrial
Average |
1.39 |
|
Times Interest Earned |
5.46 |
Impressive |
Industrial
Average |
1.15 |
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 5.47 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 0.54 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 |
5.06 |
Satisfactory |
Industrial
Average |
5.81 |
|
Total Assets Turnover |
1.27 |
Satisfactory |
Industrial
Average |
1.55 |
|
Inventory Conversion Period |
107.41 |
|
|
|
|
Inventory Turnover |
3.40 |
Impressive |
Industrial
Average |
2.51 |
|
Receivables Conversion Period |
79.52 |
|
|
|
|
Receivables Turnover |
4.59 |
Impressive |
Industrial
Average |
3.79 |
|
Payables Conversion Period |
24.70 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Uptrend
Inventory Turnover Downtrend
Receivables Turnover Uptrend
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.54.87 |
|
|
1 |
Rs.86.46 |
|
Euro |
1 |
Rs.69.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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.