MIRA
INFORM REPORT
|
Report Date : |
15.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
THAI TAFFETA
CO., LTD. |
|
|
|
|
Registered Office : |
36th Floor,
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.05.2011 |
|
|
|
|
Date of Incorporation : |
1987 |
|
|
|
|
Com. Reg. No.: |
0105530030113 [Former : 3007/2530] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Exporter and Distributor of Fabric and Yarn |
|
|
|
|
No. of Employees : |
690 |
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 : |
Slow |
|
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 |
|
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
THAI TAFFETA
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 36th FLOOR,
OCEAN TOWER 2,
75/96-99 SOI
SUKHUMVIT 19 [WATANA],
ASOKE ROAD,
KLONGTOEY NUA,
WATANA, BANGKOK
10110, THAILAND
TELEPHONE : [66] 2260-5186-8,
2661-6580-6
FAX : [66] 2258-4375,
2661-6138
E-MAIL
ADDRESS : thaitaffetaco@firmmail.thaitextile.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1987
REGISTRATION
NO. : 0105530030113 [Former : 3007/2530]
TAX
ID NO. : 3101453430
CAPITAL REGISTERED : BHT. 1,488,000,000
CAPITAL PAID-UP : BHT.
1,488,000,000
SHAREHOLDER’S PROPORTION : THAI :
94.28%
FOREIGN
: 5.72%
FISCAL YEAR CLOSING DATE : MAY
31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SOMSAK CHAIWILAI, THAI
PRESIDENT
NO.
OF STAFF : 690
LINES
OF BUSINESS : FABRIC AND
YARN
MANUFACTURER, EXPORTER
AND 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 June
25, 1987 as a
private limited company
under the name
style THAI TAFFETA
CO., LTD., by
Thai and Taiwanese groups,
with the business
objective to manufacture textile and
yarn for both
domestic and oversea
markets. It currently
employs approximate 690
staff.
The company received
a quality system
ISO 9002 certification
from The TUV
CERT Certification Body of
Rhenisch-Westfälischer TUV
e.V., in
1999.
The subject’s registered
address is 36th Floor,
Ocean Tower 2, 75/96-99
Soi Sukhumvit 19,
Asoke Road, Klongtoey
Nua, Watana, Bangkok
10110, and this
is the company’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Metha Chaiwilai |
[x] |
Thai |
76 |
|
Mrs. Rachit Chaiwilai |
[*] |
Thai |
72 |
|
Ms. Srichan Chaiwilai |
[--] |
Thai |
44 |
|
Mr. Somsak Chaiwilai |
[+] [--] |
Thai |
45 |
|
Mr. Surin Napapreuksachart |
[+] |
Thai |
81 |
|
Mr. Cheng Bor Chau |
[-] |
Taiwanese |
70 |
|
Mr. Supoj Chaiwilai |
[*] |
Thai |
38 |
|
Ms. Siriporn Chaiwilai |
|
Thai |
37 |
|
Mrs. Kritika Chaiwilai |
[-] [--] |
Thai |
45 |
AUTHORIZED PERSON
- The mentioned director
[x] can sign
on behalf of
the subject with
company’s affixed.
- Both of
the mentioned directors [+] can
jointly sign on
behalf of the
subject with company’s affixed.
- Both of
the mentioned directors [-]
can jointly sign
on behalf of
the subject with
company’s affixed.
- Both of
the mentioned directors [*]
can jointly sign
on behalf of
the subject with
company’s affixed.
- Anyone of
the mentioned directors [--]
can sign on
behalf of the
subject with company’s affixed.
MANAGEMENT
Mr. Somsak Chaiwilai
is the President
and Factory Manager.
He is Thai
nationality with the
age of 45
years old.
Ms. Varaporn Leepokanond is
the Marketing Manager.
She is Thai
nationality.
Ms. Sirirak Auttarak is the Personnel
and Administration Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a producer
wide range of
quality synthetic fabrics
and yarn in
large volumes through
the utilisation of
advance water-jet looms.
The main products
are as the
followings:
- Nylon Filament
Yarn
- Yarn Bright
& Semi-Bright [POY,
FDY, DTY &
Air Texture]
- Nylon &
Polyester Fabric
- Nylon Plain,
Oxford, Twill, Satin,
Taslon, Pongee, Pigment
- All kind
of Coating &
Finishing PU, Silver,
Milky and etc.
- Breathable, Hivisibility
- EN71, Teflon
and etc.
- Film Laminate
The products are
used in the
garment, PVC laminating,
PU coating and
rubber backing industries,
to make a
wide diversity of
consumer goods, such
as sportswear, casual wear,
shoes, artificial flowers,
camping equipment, umbrellas
and etc.
PRODUCTION [as of
July 4, 2011]
Weaving capacity : 114,400,000
yards/year
Dyeing & finishing capacity : 186,000,000
yards/year
Printing capacity : 15,000,000
yards/year
Nylon filament yarn : 14,854 tons/year
Nylon texture yarn : 4,485 tons/year
IMPORT [COUNTRIES]
40% of raw
chemical mainly caprolactam,
yarn and nylon
are imported from
Netherlands, Germany, Switzerland,
Republic of China
and Belgium.
MAJOR SUPPLIERS
|
Name |
Country |
|
Dystar Thai Ltd. |
Thailand |
|
Clariant Chemicals Ltd. |
Thailand |
|
CIBA Specialty Chemical
[Thailand] Ltd. |
Thailand |
|
BASF [Thai] Ltd. |
Thailand |
SALES [LOCAL]
40% of its products
is sold locally
to manufacturers, wholesalers,
manufacturers and end-users.
EXPORT [COUNTRY]
60% of the
products is exported
to United Kingdom,
Hong Kong, Belgium, Spain,
India, Italy, Republic
of China, Korea,
Vietnam, United Arab
Emirate, Brazil, Sri Lanka,
Bangladesh, Japan, Laos,
U.S.A., Canada, Taiwan,
Indonesia and Middle
East 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 for the
past two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60-90 days.
Local bills
are paid on
the credits term
of 30-60-90 days.
Imports are
by T/T on the
credit term of 90 days.
Exports are
against T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Road, Silom, Bangrak,
Bangkok]
Bank of Ayudhya
Public Co., Ltd.
[Samyek Branch,
Charoenkrung Rd., Samphantawong, Bangkok]
EMPLOYMENT
The subject employs
approximately 690 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is
rented for operating
office at the
heading address. Premise
is located in
a prime commercial
area.
The factory for
yarn, fabric, dyeing,
finishing, printing and
utility covers an
area of 750
rai [approximately 300 acres] on
13 Highway No.
3191 Map-Ta-Phut, Hueypong,
Muang, Rayong 21150.
Tel: [66] 38
681-601-6, Fax: [66] 38 681-609.
COMMENT
Subject was formed
in 1987 as
a manufacturer, distributor
and exporter of
fabric and yarns.
Its products are
for domestic consumption
and export markets. Subject had
strong business growth
in the past several years
due to strong consumption
from industrial users. Subject reported
good business in
the year 2011
as well as
expanding steadily.
FINANCIAL INFORMATION
The capital was
registered at Bht.
50,000,000 divided into
5,000,000 shares of
Bht. 10 each.
Capital was increased
later as following
:
Bht. 300,000,000 on
March 15, 1988
Bht. 930,000,000 on
August 21, 1990
Bht. 1,255,500,000
on August 2,
1995
Bht. 1,488,000,000
on November 15,
2000
The latest registered
capital was increased
to Bht. 1,488,000,000 divided into 148,800,000 shares
of Bht. 10
each with fully
paid.
MAIN SHAREHOLDERS : [as at
September 28, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Rachit Chaiwilai Nationality: Thai Address : 9/3-4
Moo 5, Kannayao,
Buengkum, Bangkok |
44,456,020 |
29.88 |
|
Mr. Metha Chaiwilai Nationality: Thai Address : 5/31
Rama 4 Rd.,
Thungmahamek, Sathorn, Bangkok |
34,095,680 |
22.91 |
|
Mr. Somsak Chaiwilai Nationality: Thai Address : 33/330
Moo 1, Bangkaew,
Bangplee,
Samutprakarn |
27,952,000 |
18.78 |
|
Mr. Supoj Chaiwilai Nationality: Thai Address : 1642
Thanurat Rd., Thungwatdon,
Sathorn, Bangkok |
18,000,000 |
12.10 |
|
Mr. Cheng Bor
Chau Nationality: Taiwanese Address : Taipei,
Taiwan |
5,000,000 |
3.36 |
|
Ms. Srichan Chaiwilai Nationality: Thai Address : 25
Soi Sapankhu, Thungmahamek,
Sathorn, Bangkok |
3,500,000 |
2.35 |
|
Others |
15,796,300 |
10.62 |
Total Shareholders : 19
Share Structure [as
at September 28,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
13 |
140,288,020 |
94.28 |
|
Foreign |
6 |
8,511,980 |
5.72 |
|
Total |
19 |
148,800,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC ACCOUNTANT NO. :
Mr. Vithaya Boonsai
No. 5720
BALANCE SHEET [BAHT]
The latest financial figures published
as at May
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents
|
564,098,793.80 |
124,997,206.02 |
|
Short-term Investment |
20,000,000.00 |
- |
|
Trade Accounts &
Notes Receivable |
437,957,043.82 |
506,507,736.55 |
|
Inventories |
549,092,029.39 |
479,334,899.67 |
|
Revenue Department Receivable |
10,067,578.56 |
30,795,347.45 |
|
Other Current Assets
|
9,618,247.02 |
13,349,759.40 |
|
|
|
|
|
Total Current Assets
|
1,590,833,692.59 |
1,154,984,949.09 |
|
|
|
|
|
Other Long-term Investment |
55,000,000.00 |
5,000,000.00 |
|
Cash at Bank
pledged as a
Collateral |
1,446,336.78 |
- |
|
Long-term Investment in
Associated Company - at
Cost |
9,018,960.00 |
10,010,800.00 |
|
Long-term Investment in
Other Company |
1,190,000.00 |
1,190,000.00 |
|
Fixed Assets |
626,662,759.27 |
772,380,881.96 |
|
Non-operating Land |
9,231,250.00 |
9,231,250.00 |
|
Other Non-current Assets |
1,652,239.72 |
1,168,082.00 |
|
Total Assets |
2,295,035,238.36 |
1,953,965,963.05 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Bank |
185,708,328.02 |
109,117,073.85 |
|
Trade Accts. &
Notes Payable |
1,160,103,113.63 |
770,026,786.81 |
|
Short-term Loan from
Related Company |
- |
23,797,329.53 |
|
Short-term Loan from
Director |
1,000,000.00 |
42,622,912.62 |
|
Advance Income from
Goods |
26,824,628.07 |
32,027,280.99 |
|
Accrued Expenses |
26,170,662.27 |
33,326,995.65 |
|
Other Current Liabilities |
4,122,340.50 |
4,123,699.46 |
|
|
|
|
|
Total Current Liabilities |
1,403,929,072.49 |
1,015,042,078.91 |
|
Estimated Liabilities
Repairs |
- |
6,802,768.00 |
|
Total Liabilities |
1,403,929,072.49 |
1,021,844,846.91 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 148,800,000 shares |
1,488,000,000.00 |
1,488,000,000.00 |
|
|
|
|
|
Capital Paid |
1,488,000,000.00 |
1,488,000,000.00 |
|
Unappropriated [Deficit] |
[596,893,834.13] |
[555,878,883.86] |
|
Total Shareholders' Equity |
891,106,165.87 |
932,121,116.14 |
|
Total Liabilities &
Shareholders' Equity |
2,295,035,238.36 |
1,953,965,963.05 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
2,613,298,485.33 |
1,915,061,905.49 |
|
Gain on Exchange
Rate |
56,862,837.72 |
26,389,719.92 |
|
Other Income |
28,417,023.34 |
10,614,567.66 |
|
Total Revenues |
2,698,578,346.39 |
1,952,066,193.07 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,537,503,739.17 |
1,872,274,038.03 |
|
Selling Expenses |
97,579,143.68 |
84,069,940.48 |
|
Administrative Expenses |
101,509,813.18 |
92,135,406.59 |
|
Total Expenses |
2,736,592,696.03 |
2,084,479,385.10 |
|
|
|
|
|
Profit/[Loss] before Financial
Cost |
[38,014,349.64] |
[96,413,192.03] |
|
Financial Cost |
[3,000,600.63] |
[4,139,893.10] |
|
|
|
|
|
Net Profit / [Loss] |
[41,014,950.27] |
[100,553,085.13] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.13 |
1.14 |
|
QUICK RATIO |
TIMES |
0.73 |
0.62 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.17 |
2.48 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.14 |
0.98 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
78.98 |
93.45 |
|
INVENTORY TURNOVER |
TIMES |
4.62 |
3.91 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
61.17 |
96.54 |
|
RECEIVABLES TURNOVER |
TIMES |
5.97 |
3.78 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
166.87 |
150.12 |
|
CASH CONVERSION CYCLE |
DAYS |
(26.72) |
39.87 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
97.10 |
97.77 |
|
SELLING & ADMINISTRATION |
% |
7.62 |
9.20 |
|
INTEREST |
% |
0.11 |
0.22 |
|
GROSS PROFIT MARGIN |
% |
6.16 |
4.17 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(1.45) |
(6.91) |
|
NET PROFIT MARGIN |
% |
(1.57) |
(5.25) |
|
RETURN ON EQUITY |
% |
(4.60) |
(10.79) |
|
RETURN ON ASSET |
% |
(1.79) |
(5.15) |
|
EARNING PER SHARE |
BAHT |
(0.28) |
(0.68) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.61 |
0.52 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.58 |
1.10 |
|
TIME INTEREST EARNED |
TIMES |
(12.67) |
(31.98) |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
36.46 |
|
|
OPERATING PROFIT |
% |
(71.29) |
|
|
NET PROFIT |
% |
59.21 |
|
|
FIXED ASSETS |
% |
(18.87) |
|
|
TOTAL ASSETS |
% |
17.46 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
6.16 |
Acceptable |
Industrial
Average |
10.20 |
|
Net Profit Margin |
(1.57) |
Deteriorated |
Industrial
Average |
0.69 |
|
Return on Assets |
(1.79) |
Deteriorated |
Industrial Average |
0.72 |
|
Return on Equity |
(4.60) |
Deteriorated |
Industrial
Average |
2.00 |
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 6.16%. 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 -1.57%.
When compared with the industry average, the ratio of the company was lower.
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. When compared with the industry average, it was lower, the company's figure is -1.79%.
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. When compared with the
industry average, it was lower, the company's figure is -4.6%.
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 |
1.13 |
Satisfactory |
Industrial
Average |
1.43 |
|
Quick Ratio |
0.73 |
|
|
|
|
Cash Conversion Cycle |
(26.72) |
|
|
|
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 1.13 times in 2011, decreased from 1.14 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 0.73 times in 2011,
increased from 0.62 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 -27 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 |
0.57 |
|
Debt to Equity Ratio |
1.58 |
Acceptable |
Industrial
Average |
1.61 |
|
Times Interest Earned |
(12.67) |
Risky |
Industrial
Average |
1.16 |
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 -12.67 lower than 1, so the company is not generating
enough cash from EBIT to meet its interest obligations.
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 |
4.17 |
Impressive |
Industrial
Average |
1.95 |
|
Total Assets Turnover |
1.14 |
Impressive |
Industrial
Average |
0.97 |
|
Inventory Conversion Period |
78.98 |
|
|
|
|
Inventory Turnover |
4.62 |
Impressive |
Industrial
Average |
2.84 |
|
Receivables Conversion Period |
61.17 |
|
|
|
|
Receivables Turnover |
5.97 |
Impressive |
Industrial
Average |
3.69 |
|
Payables Conversion Period |
166.87 |
|
|
|
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
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.72 |
|
|
1 |
Rs.88.60 |
|
Euro |
1 |
Rs.71.34 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.