|
Report Date : |
11.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
HAI DUONG PORCELAIN JOINT STOCK COMPANY |
|
|
|
|
Registered Office : |
Pham Ngu Lao Street, Pham Ngu Lao Ward, Hai Duong City, Hai Duong
Province |
|
|
|
|
Country : |
Vietnam |
|
|
|
|
Financials (as on) : |
31.12.2009 |
|
|
|
|
Year of Establishment : |
1960 |
|
|
|
|
Com. Reg. No.: |
0800003722 |
|
|
|
|
Legal Form : |
Joint Stock Company |
|
|
|
|
Line of Business : |
Manufacture porcelain products for consumer uses such as dining series, tea and coffee pot set, etc. |
|
|
|
|
No. of Employees : |
443 |
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 : |
Unknown |
|
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 (31.03.2012) |
Current Rating (30.06.2012) |
|
Vietnam |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
vietnam - ECONOMIC OVERVIEW
Vietnam is a densely-populated developing country that in the last 30
years has had to recover from the ravages of war, the loss of financial support
from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While
Vietnam's economy remains dominated by state-owned enterprises, which still
produce about 40% of GDP, Vietnamese authorities have reaffirmed their
commitment to economic liberalization and international integration. They have
moved to implement the structural reforms needed to modernize the economy and
to produce more competitive export-driven industries. Vietnam joined the World
Trade Organization in January 2007 following more than a decade-long
negotiation process. Vietnam became an official negotiating partner in the
developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's
share of economic output has continued to shrink from about 25% in 2000 to
about 22% in 2011, while industry's share increased from 36% to 40% in the same
period. Deep poverty has declined significantly, and Vietnam is working to
create jobs to meet the challenge of a labor force that is growing by more than
one million people every year. The global recession has hurt Vietnam's
export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum
average achieved during the last decade. In 2011, exports increased by more
than 33%, year-on-year, and the trade deficit, while reduced from 2010,
remained high, prompting the government to maintain administrative trade
measures to limit the trade deficit. Vietnam's managed currency, the dong,
continues to face downward pressure due to a persistent trade imbalance. Since
2008, the government devalued it in excess of 20% through a series of small
devaluations. Foreign donors pledged nearly $8 billion in new development
assistance for 2011. However, the government's strong growth-oriented economic
policies have caused it to struggle to control one of the region's highest
inflation rates, which reached as high as 23% in August 2011 and averaged 18%
for the year. In February 2011, Vietnam shifted its focus away from economic
growth to stabilizing its economy and tightened fiscal and monetary policies.
In early 2012 Vietnam unveiled a broad "three pillar" economic reform
program, proposing the restructuring of public investment, state-owned
enterprises and the banking sector. Vietnam's economy continues to face
challenges from low foreign exchange reserves, an undercapitalized banking
sector, and high borrowing costs. The near-bankruptcy and subsequent default of
the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings
downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing
difficulties.
|
Source : CIA |
Current legal status
|
||
|
English Name |
|
HAI DUONG PORCELAIN JOINT STOCK COMPANY |
|
Vietnamese Name |
|
CONG TY CO PHAN SU HAI DUONG |
|
Short name |
|
HAPOCO |
|
Type of Business |
|
Joint stock company |
|
Year Established |
|
1960 |
|
Business Registration No. |
|
0800003722 |
|
Date of Registration |
|
07 May 2009 |
|
Latest Date of Registration |
|
15 Apr 2010 |
|
Place of Registration |
|
Ha Noi Department of Planning and
Investment |
|
Chartered capital |
|
VND 30,000,000,000 |
|
Status |
|
Unlisted |
|
Tax code |
|
0800003722 |
|
Total Employees |
|
443 |
|
Size |
|
Medium |
Historical
Identification & Legal form
|
List |
Changed Items |
Date of changes |
|
1 |
Subject has got
former Establishment Decision No: QD 921/CNn-TCLD dated 09/10/1992 by
Ministry of Industry Changed to: QD
35/ 204/ QD-BCN dated 07/05/2004 by Ministry of Industry |
07 May 2004 |
|
2 |
Subject has got
former Type of Business: HAI DUONG PORCELAIN COMPANY Changed to: HAI
DUONG PORCELAIN JOINT STOCK COMPANY |
07 May 2004 |
|
3 |
Subject has got
former Type of Business: HAI DUONG PORCELAIN FACTORY Changed to: HAI DUONG
PORCELAIN COMPANY |
09 Oct 1992 |
|
Head Office |
||
|
Address |
|
Pham Ngu Lao Street, Pham Ngu Lao Ward,
Hai Duong City, Hai Duong Province, Vietnam |
|
Telephone |
|
(84-320) 3852307/ 3852259 |
|
Fax |
|
(84-320) 3852182 |
|
Email |
|
|
|
Website |
|
|
|
Note:
The exact email of the subject is above |
||
|
|
||
|
Factory Address |
||
|
Address |
|
Pham Ngu Lao street, Pham Ngu Lao ward ,
Hai Duong City, Hai Duong Province, Vietnam |
|
|
||
|
Representative office in Ha Noi |
||
|
Address |
|
No. 16 Long Bien station Apartment Tran
Nhat Duat, , Ha Noi City, Vietnam |
|
Telephone |
|
(84-4) 36369196 |
|
Fax |
|
(84-4) 36369198 |
|
1. NAME |
|
Mr. NGUYEN DO HA |
|
Position |
|
General Director |
|
Date of Birth |
|
1973 |
|
ID Number/Passport |
|
011668113 |
|
ID Issue Date |
|
22 Apr 1996 |
|
ID Issue Place |
|
The police of Hanoi
City |
|
Resident |
|
K80B Apartment, Xuan Dinh
Commune, Tu Liem District, Ha Noi City, Vietnam |
|
Current resident |
|
No. 33/6/1 Le Thanh Nghi Street, Bach Khoa
Ward, Hai Ba Trung District, Ha Noi City, Vietnam |
|
Nationality |
|
Vietnamese |
|
|
||
|
2. NAME |
|
Ms. VU LE HOA |
|
Position |
|
Deputy General Director |
|
Nationality |
|
Vietnamese |
|
Email |
|
vulehoa@suhaiduong.com |
|
|
||
|
3. NAME |
|
Mr. BUI DAC LOC |
|
Position |
|
Deputy General Director |
|
ID Number/Passport |
|
010397605 |
|
Resident |
|
No. 80 Tue Tinh Steet,
Binh Han Ward, Hai Duong City, Hai Duong Province, Vietnam |
|
Nationality |
|
Vietnamese |
|
|
||
|
4. NAME |
|
Mr. NGUYEN VAN DIEM |
|
Position |
|
Chief Accountant |
|
Nationality |
|
Vietnamese |
-
Manufacture porcelain products for consumer uses such as dining series, tea and
coffee pot set, etc.
|
IMPORT: |
||
|
Types of products |
|
Materials for production such as quartz, clay |
|
Market |
|
China, India, Japan |
|
Mode of payment |
|
T/T, L/C |
|
|
||
|
EXPORT: |
||
|
Types of products |
|
Porcelain products |
|
Market |
|
Europe, Asia |
|
Note: Previously, the export ratio was 50%,
however, the subject has almost had no export activities since 2005 |
||
|
1. VIET NAM JOINT STOCK COMMERCIAL BANK
FOR INDUSTRY AND TRADE HAI DUONG BRANCH |
||
|
Address |
|
No. 01 Hong Quang str, Hai Duong City, Hai Duong Province, Vietnam |
|
Telephone |
|
(84-320) 3852280 |
|
1. NAME |
|
MINISTRY OF INDUSTRY AND TRADE |
|
Address |
|
No. 54 Hai Ba Trung Str., Hoan Kiem District, Ha Noi City, Vietnam |
|
Tel |
|
(84-4) 22 202 222 |
|
Fax |
|
(84-4) 22 202 525 |
|
Number of shares |
|
1,089,750 |
|
Value of shares |
|
VND 10,897,500,000 |
|
|
||
|
2. NAME |
|
Mr. HA THE QUANG |
|
ID Number/Passport |
|
140004721 |
|
Resident |
|
No 101, Dien Bien Phu Street, Pham Ngu Lao
Ward, Hai Duong City, Hai Duong Province, Vietnam |
|
Nationality |
|
Vietnamese |
|
Number of Shares |
|
1,650 |
|
Value of shares |
|
VND 16,500,000 |
|
|
||
|
3. NAME |
|
Mr. HOANG QUOC THANH |
|
ID Number/Passport |
|
011501762 |
|
Resident |
|
No 118, Thong Nhat Street, Le Thanh Nghi
Ward, Hai Duong City, Hai Duong Province, Vietnam |
|
Nationality |
|
Vietnamese |
|
Number of Shares |
|
880 |
|
Value of shares |
|
VND 8,800,000 |
|
|
||
|
4. NAME |
|
Mr. PHAM CAT LUONG |
|
ID Number/Passport |
|
141127111 |
|
Resident |
|
A9, Dormitory of Hai Duong Porcelain
Company, Binh Han Ward, Hai Duong City, Hai Duong Province, Vietnam |
|
Nationality |
|
Vietnamese |
|
Number of Shares |
|
880 |
|
Value of shares |
|
VND 8,800,000 |
|
|
||
|
5. NAME |
|
Mr. BUI DAC LOC |
|
Position |
|
Deputy General Director |
|
ID Number/Passport |
|
010397605 |
|
Resident |
|
No. 80 Tue Tinh Street, Binh Han Ward, Hai
Duong City, Hai Duong Province, Vietnam |
|
Nationality |
|
Vietnam |
|
Number of Shares |
|
1,260 |
|
Value of shares |
|
VND 12,600,000 |
|
|
||
|
6. NAME |
|
Mr. NGUYEN VAN MAU |
|
ID Number/Passport |
|
010412129 |
|
Resident |
|
19B/104 Pham Ngu Lao Ward, Hai Duong City,
Hai Duong Province, Vietnam |
|
Nationality |
|
Vietnamese |
|
Number of Shares |
|
1,210 |
|
Value of shares |
|
VND 12,100,000 |
|
|
||
|
7. NAME |
|
Mr. NGUYEN VAN THANG |
|
ID Number/Passport |
|
142363963 |
|
Resident |
|
Dormitory of Hai Duong Porcelain Company,
Pham Ngu Lao Ward, Hai Duong City, Hai Duong Province, Vietnam |
|
Nationality |
|
Vietnamese |
|
Number of Shares |
|
1,760 |
|
Value of shares |
|
VND 17,600,000 |
|
|
||
|
8. NAME |
|
Mr. BUI TRONG HOAN |
|
ID Number/Passport |
|
141882943 |
|
Resident |
|
Chuong My Street, Pham Ngu Lao Ward, Hai
Duong City, Hai Duong Province, Vietnam |
|
Nationality |
|
Vietnamese |
|
Number of Shares |
|
880 |
|
Value of shares |
|
VND 8,800,000 |
|
|
||
|
9. NAME |
|
Ms. QUACH THI THANH UYEN |
|
ID Number/Passport |
|
151221859 |
|
Resident |
|
Room 19, Dormitory of Hai Duong Porcelain
Company, Binh Han Ward, Hai Duong City, Hai Duong Province, Vietnam |
|
Nationality |
|
Vietnamese |
|
Number of Shares |
|
170 |
|
Value of shares |
|
VND 1,700,000 |
|
BALANCE SHEET |
|
Unit: One VND
|
|
|
Balance sheet date |
31/12/2009 |
|
Number of weeks |
52 |
|
ASSETS |
|
|
A – CURRENT ASSETS |
33,757,000,000 |
|
I. Cash and cash equivalents |
4,117,000,000 |
|
1. Cash |
4,117,000,000 |
|
2. Cash equivalents |
0 |
|
II. Short-term investments |
0 |
|
1. Short-term investments |
0 |
|
2. Provisions for devaluation of short-term investments |
0 |
|
III. Accounts receivable |
2,966,000,000 |
|
1. Receivable from customers |
2,517,000,000 |
|
2. Prepayments to suppliers |
239,000,000 |
|
3. Inter-company receivable |
0 |
|
4. Receivable according to the progress of construction |
0 |
|
5. Other receivable |
210,000,000 |
|
6. Provisions for bad debts |
0 |
|
IV. Inventories |
26,646,000,000 |
|
1. Inventories |
27,620,000,000 |
|
2. Provisions for devaluation of inventories |
-974,000,000 |
|
V. Other Current Assets |
28,000,000 |
|
1. Short-term prepaid expenses |
0 |
|
2. VAT to be deducted |
0 |
|
3. Taxes and other accounts receivable from the State |
0 |
|
4. Other current assets |
28,000,000 |
|
B. LONG-TERM ASSETS |
20,162,000,000 |
|
I. Long term accounts receivable |
0 |
|
1. Long term account receivable from customers |
0 |
|
2. Working capital in affiliates |
0 |
|
3. Long-term inter-company receivable |
0 |
|
4. Other long-term receivable |
0 |
|
5. Provisions for bad debts from customers |
0 |
|
II. Fixed assets |
18,688,000,000 |
|
1. Tangible assets |
18,688,000,000 |
|
- Historical costs |
82,135,000,000 |
|
- Accumulated depreciation |
-63,447,000,000 |
|
2. Financial leasehold assets |
0 |
|
- Historical costs |
0 |
|
- Accumulated depreciation |
0 |
|
3. Intangible assets |
0 |
|
- Initial costs |
0 |
|
- Accumulated amortization |
0 |
|
4. Construction-in-progress |
0 |
|
III. Investment property |
0 |
|
Historical costs |
0 |
|
Accumulated depreciation |
0 |
|
IV. Long-term investments |
0 |
|
1. Investments in affiliates |
0 |
|
2. Investments in business concerns and joint ventures |
0 |
|
3. Other long-term investments |
0 |
|
4. Provisions for devaluation of long-term investments |
0 |
|
V. Other long-term assets |
1,474,000,000 |
|
1. Long-term prepaid expenses |
1,474,000,000 |
|
2. Deferred income tax assets |
0 |
|
3. Other long-term assets |
0 |
|
VI. Goodwill |
|
|
1. Goodwill |
|
|
TOTAL ASSETS |
53,919,000,000 |
|
|
|
|
LIABILITIES |
|
|
A- LIABILITIES |
33,385,000,000 |
|
I. Current liabilities |
26,331,000,000 |
|
1. Short-term debts and loans |
15,227,000,000 |
|
2. Payable to suppliers |
4,434,000,000 |
|
3. Advances from customers |
1,109,000,000 |
|
4. Taxes and other obligations to the State Budget |
1,526,000,000 |
|
5. Payable to employees |
2,328,000,000 |
|
6. Accrued expenses |
425,000,000 |
|
7. Inter-company payable |
0 |
|
8. Payable according to the progress of construction contracts |
0 |
|
9. Other payable |
1,282,000,000 |
|
10. Provisions for short-term accounts payable |
0 |
|
II. Long-Term Liabilities |
7,054,000,000 |
|
1. Long-term accounts payable to suppliers |
0 |
|
2. Long-term inter-company payable |
0 |
|
3. Other long-term payable |
0 |
|
4. Long-term debts and loans |
6,927,000,000 |
|
5. Deferred income tax payable |
0 |
|
6. Provisions for unemployment allowances |
127,000,000 |
|
7. Provisions for long-term accounts payable |
0 |
|
B- OWNER’S EQUITY |
20,534,000,000 |
|
I. OWNER’S EQUITY |
20,529,000,000 |
|
1. Capital |
30,000,000,000 |
|
2. Share premiums |
0 |
|
3. Other sources of capital |
300,000,000 |
|
4. Treasury stocks |
0 |
|
5. Differences on asset revaluation |
0 |
|
6. Foreign exchange differences |
-7,000,000 |
|
7. Business promotion fund |
742,000,000 |
|
8. Financial reserved fund |
0 |
|
9. Other funds |
0 |
|
10. Retained earnings |
-10,506,000,000 |
|
11. Construction investment fund |
0 |
|
II. Other sources and funds |
5,000,000 |
|
1. Bonus and welfare funds (Elder form) |
5,000,000 |
|
2. Sources of expenditure |
0 |
|
3. Fund to form fixed assets |
0 |
|
MINORITY’S INTEREST |
0 |
|
TOTAL LIABILITIES AND OWNER’S EQUITY |
53,919,000,000 |
|
PROFIT &
LOSS STATEMENT |
|
|
|
|
|
Description |
FY2009 |
|
1. Total Sales |
54,002,000,000 |
|
2. Deduction item |
343,000,000 |
|
3. Net sale |
53,659,000,000 |
|
4. Costs of goods sold |
38,726,000,000 |
|
5. Gross profit |
14,933,000,000 |
|
6. Financial income |
146,000,000 |
|
7. Financial expenses |
3,178,000,000 |
|
- In which: Loan interest expenses |
1,077,000,000 |
|
8. Selling expenses |
4,142,000,000 |
|
9. Administrative overheads |
5,556,000,000 |
|
10. Net operating profit |
2,203,000,000 |
|
11. Other income |
631,000,000 |
|
12. Other expenses |
74,000,000 |
|
13. Other profit /(loss) |
557,000,000 |
|
14. Total accounting profit before tax |
2,760,000,000 |
|
15. Current corporate income tax |
0 |
|
16. Deferred corporate income tax |
0 |
|
17. Interest from subsidiaries/related companies |
0 |
|
18. Profit after tax |
2,760,000,000 |
FINANCIAL RATIOS
AND AVERAGE INDUSTRY RATIOS
|
|
||
|
Description |
FY2009 |
Average Industry |
|
Current liquidity ratio |
1.28 |
1.48 |
|
Quick liquidity ratio |
0.27 |
0.86 |
|
Inventory circle |
1.45 |
6.84 |
|
Average receive period |
20.18 |
57.12 |
|
Utilizing asset performance |
1.00 |
1.40 |
|
Liability by total assets |
61.92 |
53.27 |
|
Liability by owner's equity |
162.58 |
165.07 |
|
Ebit / Total assets (ROA) |
7.12 |
9.44 |
|
Ebit / Owner's equity (ROE) |
18.69 |
22.99 |
|
Ebit / Total sale (NPM) |
7.11 |
6.94 |
|
Gross profit / Total sale (GPM) |
27.65 |
16.18 |
|
Note: The Average Industry was calculated by VietnamCredit based on our own
statistical data |
||
|
Trade Morality |
|
Normal |
|
Liquidity |
|
Low/Medium |
|
Payment status |
|
Average |
|
Financial Situation |
|
Below Average |
|
Development trend |
|
Developing |
|
Litigation data |
|
No Record |
|
Bankruptcy |
|
No Record |
|
Payment Methods |
|
Through its bank |
|
Sale Methods |
|
Distributor |
|
Public opinion |
|
Well-known |
|
CREDIT INQUIRY: 2,500,000 USD Against D/A in term |
|
Unacceptable! |
|
The Hai Duong
Porcelain Factory, now Hai Duong Porcelain Joint-stock Company (HAPOCO), is
highly popular product and brand in Vietnam’s consumer product market, both
in rural and urban areas. It was found in 1960. In 1992, the factory was
changed to Hai Duong porcelain company under decision QD 921/CNn-TCLD by
Ministry of Industry. Until 2004, the subject was equitized under decision QD
35/204/QD-BCN by Ministry of Industry, however, capital owned by the State
still occupied 51%. The head office
is located at Pham Ngu Lao Street, Pham Ngu Lao Ward, Hai Duong City, Hai
Duong Province, Vietnam which is also the factory address of the subject. Besides,
the subject has a representative office at No. 16 Long Bien station
Apartment, Tran Nhat Duat Street, Ha Noi City, Vietnam. Its scale is medium.
The total employees of the subject are 443 people. The subject
specializes in manufacturing porcelain for consumer uses, teapot, coffee pot
set, etc. Its product is currently distributed domestically through the markets and the selling points in 20 northern provinces. Previously, the subject also exported to
Europe, Asia which occupied to 50% in sales. But the subject had no export
activities since 2005. The subject imports materials for production such as
quartz, clay from China, India and Japan. Over the last half of century of
construction and development, the Hai Duong Porcelain Joint Stock Company has
been awarded many rewards: “Vietnam’s Quality Prize” in 2004, “VIFOTEC Prize
for Science and Technology” in 2004, “Brand Golden Cup” in 2005, Title of
“Vietnamese High Quality Product” in 13 the years from 1997 to 2009, “ISO
9001-2000 Certificate” granted by TUV NORD. Due to the
aggressive competition of the market economy,
HAPOCO faced with many difficulties. Specially, in 2008, The subject was loss
63% in charter capital. The lliability by owner
equity was 4.6 units (mainly overdue debt). However, in 2009, the company was
restructured, chartered capital increased to VND 30 billion and with the
management of Mr. Nguyen Do Ha, chairman of the company, the subject began to
gain profit as well as reduce loans. Following the financial statements in 2009, liquidity position of the subject was not
good, especially, quick ratio, due to high proportion of inventories.
Inventory circle was rather low. Most of the ratios are lower than the
average industry. According to Ms HANG, the sales manager, the sale of the subject
in
2012 is not good in comparison with 2011. Annually, the subject usually sells
very well from September to March but it not good in this year. The subject
has been operating profitably for recent years, nevertheless, it has to pay
loans and offset previous years' loss. In general, the
subject has capacity to meet the commitment and no caution needed for the
normal business transactions. |
|
INDUSTRY DATA |
||||||
|
|
||||||
|
Industry code |
Growth speed by price compared with 1994 (%) |
Total enterprises 2009 |
Total employees 2010 (Thous.pers.) |
Annual average capital of enterprises 2009 (billion dongs) |
||
|
2011 |
2010 |
|||||
|
Agriculture,
Forestry and Fishing |
4.00 |
2.78 |
8,749 |
23,896.3 |
81,559 |
|
|
Industry and
Construction |
5.53 |
7.70 |
85,115 |
10,630 |
2,751,975 |
|
|
Trade and
Services |
6.69 |
7.52 |
154,978 |
14,522 |
4,939,069 |
|
|
|
||||||
|
ECONOMIC INDICATORS |
||||||
|
|
||||||
|
|
2011 |
2010 |
2009 |
|||
|
Population (Million person) |
87.84 |
86.93 |
86.02 |
|||
|
Gross Domestic Products (USD billion) |
119 |
102.2 |
91 |
|||
|
GDP Growth (%) |
5.89 |
6.78 |
5.32 |
|||
|
GDP Per Capita (USD/person/year) |
1,300 |
1,160 |
1,080 |
|||
|
Inflation (% Change in Composite CPI) |
18.58 |
11.75 |
6.88 |
|||
|
State Budget Deficit compared with GDP (%) |
4.9 |
5.8 |
6.9 |
|||
|
|
||||||
|
SERVICE TRADE PERFORMANCE |
||||||
|
|
||||||
|
Billion USD |
2011 |
2010 |
2009 |
|||
|
Exports |
96.3 |
72.2 |
57.1 |
|||
|
Imports |
105.8 |
84.8 |
69.9 |
|||
|
Trade Balance |
-9.5 |
-12.6 |
-12.8 |
|||
Source: General
Statistics Office
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.04 |
|
UK Pound |
1 |
Rs.84.83 |
|
Euro |
1 |
Rs.68.21 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.