MIRA
INFORM REPORT
|
Report Date : |
13.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
HACO ELECTRIC [THAILAND] CO., LTD. |
|
|
|
|
Formerly Known As : |
P. C. ELECTECH [THAILAND] CO., LTD |
|
|
|
|
Registered Office : |
23/1 Moo 2,
Soi 9, Ngamwongwan
Road, T. Bangkhen,
A. Muang, Nonthaburi 11000 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
25.03.2004 |
|
|
|
|
Com. Reg. No.: |
0105547043329 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer and Distributor of Electrical Equipment |
|
|
|
|
No. of Employees : |
50 |
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
HACO ELECTRIC [THAILAND] CO., LTD.
[FORMER
: P. C. ELECTECH
[THAILAND] CO., LTD.]
SUMMARY
BUSINESS
ADDRESS : 23/1
MOO 2, SOI
9, NGAMWONGWAN ROAD,
T. BANGKHEN,
A. MUANG,
NONTHABURI 11000
TELEPHONE : [66] 2952-6778
FAX :
[66] 2952-5334
E-MAIL
ADDRESS : marketing@hacothailand.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2004
REGISTRATION
NO. : 0105547043329
TAX
ID NO. : 3031322219
CAPITAL REGISTERED : BHT. 25,000,000
CAPITAL PAID-UP : BHT.
25,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. VEERA VANICHYANYONG, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 50
LINES
OF BUSINESS : ELECTRICAL EQUIPMENT
IMPORTER AND
DISTRIBUTOR
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 March 25,
2004 as a
private limited company
under the originally
registered name “P.C.
Electech [Thailand] Co., Ltd.” by
Thai groups. On
December 26, 2007,
subject’s name was
changed to HACO
ELECTRIC [THAILAND] CO., LTD. Its
business objective is an
importer and distributor
various kinds of
electrical equipment to
domestic market. It
currently employs approximate
50 staff.
The subject’s registered address was
initially located at 408 Rama 3 Rd., Bangklo,
Bangkorlaem, Bangkok 10120.
On
June 25, 2009, the
registered address was relocated
to 23/1 Moo 2, Soi 9,
Ngamwongwan Rd., T. Bangkhen, A. Muang, Nonthaburi 11000, and
this is the
company’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Veera Vanichyanyong |
|
Thai |
74 |
|
Mr. Vorakit Vanichyanyong |
|
Thai |
40 |
|
Mr. Tassaphan Vanichyanyong |
|
Thai |
36 |
|
Ms. Orawan Vanichyanyong |
|
Thai |
42 |
AUTHORIZED PERSON
Any two of the
above directors can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Veera Vanichyanyong is
the Managing Director.
He is Thai
nationality with the
age of 74
years old.
Mr. Vorakit Vanichyanyong is
the General Manager.
He is Thai
nationality with the
age of 40
years old.
Mr. Tassaphan Vanichyanyong is
the Marketing Manager.
He is Thai
nationality with the
age of 36
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing and
distributing various kinds
of electrical equipment,
such as switches, plugs,
lighting, conduits, switchboard,
ballast, capacitors, circuit
breakers, high-low voltage electrical equipment, inverter,
control equipment, electric
wire, cable ties,
industrial switch gears,
HRC fuse link & fuse bases,
sockets, floor sockets,
tuning, safety breaker,
lighting equipment, MCB,
RCDS consumer units
and etc.
MAJOR
BRANDS
“UNIVOLT”,
“FERMAX”, “PHILIPS”, “NUEVO”,
“LITEGUARD”, “BULKHEAD”, “SWE”,
“TURBO”, “PLUG TOP”, “PRONTO”,
“DECO”, “T & J”, “PCE”,
“MIRACLE” and etc.
IMPORT
Most of
the products are
imported from Germany,
Spain, Austria, Denmark, Hong Kong,
South Korea, Taiwan,
Singapore, United Kingdom,
Republic of China,
Japan and Malaysia.
MAJOR
SUPPLIERS
PC
Electric GmbH. : Germany
T & J
Electrical International Ltd. : United Kingdom
Dietzel
GmbH :
Germany
SALES
100% of the products is distributed and supplied locally by wholesale to
construction contractor, manufacturers
and end-users both
private and government
sectors.
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
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.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately
50 staff.
LOCATION DETAILS
The
premise is owned
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Warehouse is
located at 39/24
Moo 4, 345
Rd., T. Laharn, A. Bangbuathong, Nonthaburi
11110.
COMMENT
The subject was
formed in 2004
as an importer
and distributor of
electrical equipments. The
subject remains optimistic
and expect domestic
sales to continue
growing this year,
as well as
expecting to maintain
profit from strong consumption
of industrial sector. The
subject is considered
to retain its
stability and steady
growth.
FINANCIAL INFORMATION
The
capital was registered at
Bht. 10,000,000 divided into 100,000 shares
of Bht. 100 each.
On
November 17, 2009, the
capital was increased
to Bht. 25,000,000 divided
into 250,000 shares
of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 29, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Veera Vanichyanyong Nationality: Thai Address : 150/49-51
Lanluang Rd., Klongmahanark,
Pomprab, Bangkok |
62,500 |
25.00 |
|
Mrs. Pornphan Vanichyanyong Nationality: Thai Address : 31/14
Damrongrak Rd., Klongmahanark,
Pomprab, Bangkok |
37,500 |
15.00 |
|
Mr. Vorakit Vanichyanyong Nationality: Thai Address : 23/1
Moo 2, Bangkhen,
Muang, Nonthaburi |
37,500 |
15.00 |
|
Mr. Tassaphan Vanichyanyong Nationality: Thai Address : 23/1
Moo 2, Bangkhen,
Muang, Nonthaburi |
37,500 |
15.00 |
|
Ms. Orawan Vanichyanyong Nationality: Thai Address : 23/1
Moo 2, Bangkhen,
Muang, Nonthaburi |
37,500 |
15.00 |
|
Ms. Nanthawan Vanichyanyong Nationality: Thai Address : 23/1
Moo 2, Bangkhen,
Muang, Nonthaburi |
37,500 |
15.00 |
Total Shareholders : 6
Share Structure [as
at April 29,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
250,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
6 |
250,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Petch Vanichwit No.
5658
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash and Cash Equivalents |
4,255,053.33 |
2,056,091.74 |
3,944,880.53 |
|
Short-term Investment |
100,000.00 |
100,000.00 |
- |
|
Trade Accounts & Other
Receivable |
104,272,722.91 |
71,530,247.75 |
52,338,642.12 |
|
Inventories |
45,241,692.19 |
31,838,073.62 |
34,053,089.20 |
|
Other Current Assets
|
- |
- |
7,041,389.29 |
|
Total Current Assets
|
153,869,468.43 |
105,524,413.11 |
97,378,001.14 |
|
|
|
|
|
|
Other Short-term Investment |
10,313,348.60 |
308,953.60 |
300,000.00 |
|
Fixed Assets |
8,023,629.94 |
9,861,405.50 |
2,728,323.06 |
|
Intangible Assets |
35,510.42 |
50,510.42 |
- |
|
Other Non-current Assets |
1,034,350.00 |
1,032,350.00 |
393,270.42 |
|
Total Assets |
173,276,307.39 |
116,777,632.63 |
100,799,594.62 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial
Institution |
6,491,496.60 |
- |
4,540,509.68 |
|
Trade Accounts & Other Payable |
98,481,851.06 |
62,537,305.45 |
31,918,344.38 |
|
Current Portion of Long-term Liabilities |
432,000.00 |
1,388,074.80 |
|
|
Other Current Liabilities |
1,682,817.98 |
1,632,607.89 |
13,351,453.84 |
|
Total Current Liabilities |
107,088,165.64 |
65,557,988.14 |
49,810,307.90 |
|
|
|
|
|
|
Long-term Loan from Person
or Related Company |
19,814,247.71 |
11,442,598.45 |
15,940,191.25 |
|
Other Non-current Liabilities |
28,000.00 |
28,000.00 |
- |
|
Total Liabilities |
126,930,413.35 |
77,028,586.59 |
65,750,499.15 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 250,000 shares |
25,000,000.00 |
25,000,000.00 |
25,000,000.00 |
|
Capital Paid |
25,000,000.00 |
25,000,000.00 |
25,000,000.00 |
|
Retained Earning -
Unappropriated |
21,345,894.04 |
14,749,046.04 |
10,049,095.47 |
|
Total Shareholders' Equity |
46,345,894.04 |
39,749,046.04 |
35,049,095.47 |
|
Total Liabilities & Shareholders' Equity |
173,276,307.39 |
116,777,632.63 |
100,799,594.62 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales Income |
352,745,485.34 |
238,478,770.24 |
189,041,761.31 |
|
Other Income |
309,710.08 |
1,529,057.58 |
1,874,652.39 |
|
Total Revenues |
353,055,195.42 |
240,007,827.82 |
190,916,413.70 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
239,337,795.97 |
161,276,201.27 |
129,860,066.34 |
|
Selling Expenses |
55,966,430.34 |
32,480,644.03 |
22,503,610.12 |
|
Administrative Expenses |
46,879,387.07 |
38,227,879.80 |
34,044,470.94 |
|
Other Expenses |
323,769.39 |
310,390.71 |
- |
|
Total Expenses |
342,507,382.77 |
232,295,115.81 |
186,408,147.40 |
|
Profit / [Loss] before Financial Cost & Income Tax |
10,547,812.65 |
7,712,712.01 |
4,508,266.30 |
|
Financial Cost |
[842,772.84] |
[554,887.83] |
[730,694.11] |
|
Profit / [Loss] before Income
Tax |
9,705,039.81 |
7,157,824.18 |
3,777,572.19 |
|
Income Tax |
[3,108,191.81] |
[2,457,873.61] |
[1,465,592.46] |
|
Net Profit / [Loss] |
6,596,848.00 |
4,699,950.57 |
2,311,979.73 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.44 |
1.61 |
1.95 |
|
QUICK RATIO |
TIMES |
1.01 |
1.12 |
1.13 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
43.96 |
24.18 |
69.29 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.04 |
2.04 |
1.88 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
69.00 |
72.06 |
95.71 |
|
INVENTORY TURNOVER |
TIMES |
5.29 |
5.07 |
3.81 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
107.90 |
109.48 |
101.05 |
|
RECEIVABLES TURNOVER |
TIMES |
3.38 |
3.33 |
3.61 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
150.19 |
141.53 |
89.71 |
|
CASH CONVERSION CYCLE |
DAYS |
26.70 |
40.00 |
107.06 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
67.85 |
67.63 |
68.69 |
|
SELLING & ADMINISTRATION |
% |
29.16 |
29.65 |
29.91 |
|
INTEREST |
% |
0.24 |
0.23 |
0.39 |
|
GROSS PROFIT MARGIN |
% |
32.24 |
33.01 |
32.30 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.99 |
3.23 |
2.38 |
|
NET PROFIT MARGIN |
% |
1.87 |
1.97 |
1.22 |
|
RETURN ON EQUITY |
% |
14.23 |
11.82 |
6.60 |
|
RETURN ON ASSET |
% |
3.81 |
4.02 |
2.29 |
|
EARNING PER SHARE |
BAHT |
26.39 |
18.80 |
9.25 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.73 |
0.66 |
0.65 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.74 |
1.94 |
1.88 |
|
TIME INTEREST EARNED |
TIMES |
12.52 |
13.90 |
6.17 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
47.91 |
26.15 |
|
|
OPERATING PROFIT |
% |
36.76 |
71.08 |
|
|
NET PROFIT |
% |
40.36 |
103.29 |
|
|
FIXED ASSETS |
% |
(18.64) |
261.45 |
|
|
TOTAL ASSETS |
% |
48.38 |
15.85 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 47.91%. Turnover has increased from THB
238,478,770.24 in 2010 to THB 352,745,485.34 in 2011. While net profit has
increased from THB 4,699,950.57 in 2010 to THB 6,596,848.00 in 2011. And total
assets has increased from THB 116,777,632.63 in 2010 to THB 173,276,307.39 in
2011.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
32.24 |
Impressive |
Industrial
Average |
14.70 |
|
Net Profit Margin |
1.87 |
Impressive |
Industrial
Average |
1.40 |
|
Return on Assets |
3.81 |
Impressive |
Industrial
Average |
3.07 |
|
Return on Equity |
14.23 |
Impressive |
Industrial
Average |
8.28 |
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 32.24%. When
compared with the industry average, the ratio of the company was higher,
indicated that company was more profitable than the same industry.
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 1.87%, 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 3.81%, 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 14.23%, 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 Downtrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.44 |
Satisfactory |
Industrial
Average |
1.51 |
|
Quick Ratio |
1.01 |
|
|
|
|
Cash Conversion Cycle |
26.70 |
|
|
|
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 1.44 times in 2011, decreased from 1.61 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 1.01 times in 2011,
decreased from 1.12 times, although excluding inventory so the company still
have good short-term financial strength.
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 :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.73 |
Acceptable |
Industrial
Average |
0.63 |
|
Debt to Equity Ratio |
2.74 |
Risky |
Industrial
Average |
1.67 |
|
Times Interest Earned |
12.52 |
Impressive |
Industrial
Average |
3.28 |
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 12.52 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 0.73 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
43.96 |
Impressive |
Industrial
Average |
11.17 |
|
Total Assets Turnover |
2.04 |
Satisfactory |
Industrial
Average |
2.18 |
|
Inventory Conversion Period |
69.00 |
|
|
|
|
Inventory Turnover |
5.29 |
Impressive |
Industrial
Average |
4.99 |
|
Receivables Conversion Period |
107.90 |
|
|
|
|
Receivables Turnover |
3.38 |
Acceptable |
Industrial
Average |
4.65 |
|
Payables Conversion Period |
150.19 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.38 and 3.33 in
2011 and 2010 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate revenue. A lower ratio may indicate
over extension and collection problems. Conversely, a higher ratio may indicate
an overtly stringent policy. In this case, the company's A/R ratio in 2011
increased from 2010. This would suggest the company had good performance in the
management of its debt collections.
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has decreased from 72 days at the
end of 2010 to 69 days at the end of 2011. This represents a positive trend.
And Inventory turnover has increased from 5.07 times in year 2010 to 5.29 times
in year 2011.
The company's Total Asset Turnover is calculated as 2.04 times and 2.04
times in 2011 and 2010 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.44 |
|
|
1 |
Rs.83.77 |
|
Euro |
1 |
Rs.71.33 |
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 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.