MIRA INFORM REPORT
|
Report Date : |
09.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
CHIA TAI SEEDS CO., LTD. |
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Registered Office : |
295-303 Songwad Road, Kwaeng Samphantawong, Khet Samphantawong, Bangkok 10100 |
|
|
|
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Country : |
Thailand |
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|
|
|
Financials (as on) : |
31.12.2012 |
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|
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Date of Incorporation : |
06.01.1989 |
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|
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Com. Reg. No.: |
0105532001528 |
|
|
|
|
Legal Form : |
Private Limited Company |
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|
|
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Line of Business : |
Exporter of Agricultural Products |
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No. of Employees : |
20 |
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 : |
Good |
|
Payment Behaviour : |
Regular |
|
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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 achieved steady growth due largely to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Thailand is trying to maintain growth by encouraging domestic consumption and public investment to offset weak exports in 2012. Unemployment, at less than 1% of the labor force, stands as one of the lowest levels in the world, which puts upward pressure on wages in some industries. Thailand also attracts nearly 2.5 million migrant workers from neighboring countries. The Thai government is implementing a nation-wide 300 baht ($10) per day minimum wage policy and deploying new tax reforms designed to lower rates on middle-income earners. The Thai economy has weathered internal and external economic shocks in recent years. The global economic severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. However, in 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded. In late 2011 growth was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. Industry recovered from the second quarter of 2012 onward with GDP growth at 5.5% in 2012. The government has approved flood mitigation projects worth $11.7 billion, which were started in 2012, to prevent similar economic damage, and an additional $75 billion for infrastructure over the next seven years with a plan to start in 2013.
Source
: CIA
Company name
CHIA
TAI SEEDS CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 295-303 SONGWAD
ROAD,
KWAENG SAMPHANTAWONG,
KHET SAMPHANTAWONG, BANGKOK
10100
TELEPHONE : [66] 2810-3043,
2233-8191, 2810-3031-7
FAX :
[66] 2810-3044,
2237-1540
E-MAIL
ADDRESS : chiatai@ksc.th.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1989
REGISTRATION
NO. : 0105532001528
TAX
ID NO. : 3101600735
CAPITAL REGISTERED : BHT. 1,000,000
CAPITAL PAID-UP : BHT.
1,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. MANAS CHIARAVANONT,
THAI
PRESIDENT
NO.
OF STAFF : 20
LINES
OF BUSINESS : AGRICULTURAL PRODUCTS
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 January 6,
1989 as a
private limited company under
the registered name
CHIA TAI SEEDS
CO., LTD., by
Thai groups, with
the business objective
to export various
local agricultural products.
It currently employs
approximately 20 staff.
The subject is
a wholly owned
subsidiary of Chia
Tai Co., Ltd.,
and is also
a member of
Chia Tai Group
of companies.
The
subject’s registered address
is 295-303 Songsawad
Rd., Kwaeng Samphanatawong, Khet
Samphantawong, Bangkok 10100,
and this is
the subject’s current
operation address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Dhanin Chiaravanont |
|
Thai |
73 |
|
Mr. Wallop Chiaravanont |
|
Thai |
73 |
|
Mr. Pongthep Chiaravanont |
|
Thai |
62 |
|
Mr. Manoo Chiaravanont |
|
Thai |
59 |
|
Mr. Manas Chiaravanont |
|
Thai |
57 |
|
Mr. Min Thienvorn |
|
Thai |
76 |
AUTHORIZED PERSON
Any two of the above
directors can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Manas Chiaravanont is
the President.
He is Thai
nationality with the
age of 57 years
old.
Mr. Chaiphan Lippiwan is the Assistant
Vice President.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject
is engaged in
exporting wide range
of local agricultural
products, including agro-seeds
[vegetable, fruit & flower], under
its name “CHIA
TAI” and others,
as well as
fertilizer and crop
protection products, e.g.
insecticide, herbicide, fungicide,
and acaricide.
PURCHASE
100%
of the products
is purchased from
Chia Tai group
of companies and
other local suppliers.
MAJOR
SUPPLIERS
Agro
Chemical Industry Co.,
Ltd.
South
East Agricultural Co.,
Ltd.
Chia
Tai Produce Co.,
Ltd.
Chia
Tai Co., Ltd.
EXPORT
100% of the
products is exported
to Republic of China,
India, Vietnam, Malaysia,
Bangladesh, United Kingdom, France, Germany, Russia, United States of
America, Sri Lanka, Nepal,
Philippines, Indonesia, Myanmar
and Pakistan.
MAJOR CUSTOMERS
Agro-Culture Trends [P]
Ltd. : Sri
Lanka
PT. BISI International : Indonesia
RELATED AND AFFILIATED
COMPANIES
Chia Tai Group
of companies, comprises
of:
Agro Chemical Industry
Co., Ltd.
Business Type :
Manufacturer and distributor
of crop protection
products
Choncharoen Farm Co.,
Ltd.
Business Type : Operator
of R & D seed
products
South East Agricultural
Co., Ltd.
Business Type :
Distributor of fertilizer & crop
protection products
Chia Tai Cultivation
Technology Co., Ltd.
Business Type :
Distributor of greenhouse
equipment & irrigation
system, and
consulting service.
Chia Tai Produce
Co., Ltd.
Business Type :
Manufacturer and distributor of
vegetables and fruit
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
T/T.
BANKING
Kasikornbank
Public Co., Ltd.
EMPLOYMENT
The
subject currently employs
approximately 20 staff.
LOCATION DETAILS
The premise
is owned for
administrative office at
the heading address. Premise is
located in commercial/residential area.
COMMENT
The
company is the
pioneer company engaged in
the seed business
with the giant
C.P. Group. The company was established
exclusively as a seed
firm in Thailand.
The expansion and introduction
of modern agricultural
equipment, including a fully
equipped laboratory, where
research and development
are currently being conducted, has
contributed to bring
the seed business
on a parity
with the best
in the whole of
Southeast Asia. To maintain and improve
the highest quality standards,
Chia Tai works
strenuously in searching of new
varieties, either through
its own hybrid
breeding or in
partnership with research stations of
well-known international
companies, to develop
more suitable varieties
with higher yields for
various climatic conditions.
The
company’s business performance
is solid.
FINANCIAL INFORMATION
The
capital was registered at
Bht. 1,000,000 divided into 100,000 shares of
Bht. 10 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Chia Tai Co.,
Ltd. Nationality: Thai Address : 299-301 Songsawad Rd., Kwaeng Samphantawong, Khet Samphantawong, Bangkok
|
99,992 |
99.99 |
|
Mr. Wallop Chiaravanont Nationality: Thai Address : 1
Soi Pichaimontri, Phaholyothin Rd.,
Ladyao, Jatujak, Bangkok |
1 |
|
|
Mr. Charan Chiaravanont Nationality: Thai Address : 10
Navathani Soi 8,
Sukhapiban Rd.,
Kannayao, Buengkum, Bangkok |
1 |
|
|
Mr. Montri Chiaravanont Nationality: Thai Address : 299-301
Songsawad Rd., Kwaeng
Samphantawong, Khet Samphantawong,
Bangkok |
1 |
= 0.01 |
|
Mr. Sumeth Chiaravanont Nationality: Thai Address : 18/59
Wireless Rd., Lumpini,
Pathumwan, Bangkok |
1 |
|
|
Mr. Dhanin Chiaravanont Nationality: Thai Address : 88 Moo 17, Bangpleeyai, Bangplee,
Samutprakarn |
1 |
|
|
Mr. Pongthep Chiaravanont Nationality: Thai Address : 45
Sukhumvit 55 Rd.,
Klongtonnua,
Klongtoey, Bangkok |
1 |
|
|
Mr. Manoo Chiaravanont Nationality: Thai Address : 12/1
Soi Daeng-udom, Sukhumvit
Rd., Klongton, Prakanong,
Bangkok |
1 |
|
|
Mr. Manas Chiaravanont Nationality: Thai Address : 18/1
Soi Klang, Sukhumvit
Rd.,
Klongtonnua, Prakanong, Bangkok |
1 |
|
Total Shareholders : 9
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
9 |
100,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
9 |
100,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Santi Maneewong No.
6182
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
41,997,824.60 |
7,681,133.28 |
13,980,664.91 |
|
Short-term Investment |
10,000,000.00 |
25,000,000.00 |
- |
|
Trade Accounts & Other Receivable |
121,651,391.95 |
112,407,749.84 |
89,720,153.75 |
|
Inventories |
445,167.89 |
641,292.87 |
989,261.87 |
|
Other Current Assets
|
1,164,034.66 |
1,171,457.70 |
650,868.25 |
|
|
|
|
|
|
Total Current Assets
|
175,258,419.10 |
146,901,633.69 |
105,340,948.78 |
|
|
|
|
|
|
Fixed Assets |
434,046.86 |
611,850.35 |
702,565.83 |
|
Other Non - current Assets |
360,099.79 |
388,823.30 |
412,715.05 |
|
Total Assets |
176,052,565.75 |
147,902,307.34 |
106,456,229.66 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts & Other Payable |
6,385,415.88 |
11,126,152.42 |
14,014,796.99 |
|
Accrued Income Tax |
18,270,419.57 |
28,920,867.78 |
7,026,146.07 |
|
Other Current Liabilities |
14,188.57 |
10,509.39 |
102,320.09 |
|
|
|
|
|
|
Total Current Liabilities |
24,670,024.02 |
40,057,529.59 |
21,143,263.15 |
|
Total Liabilities |
24,670,024.02 |
40,057,529.59 |
21,143,263.15 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
value authorized, issued
and fully paid share
capital 100,000 shares |
1,000,000.00 |
1,000,000.00 |
1,000,000.00 |
|
|
|
|
|
|
Capital Paid |
1,000,000.00 |
1,000,000.00 |
1,000,000.00 |
|
Retained Earning |
|
|
|
|
Appropriated for
Statutory Reserve |
100,000.00 |
100,000.00 |
100,000.00 |
|
Unappropriated |
150,282,541.73 |
106,744,777.75 |
84,212,966.51 |
|
Total Shareholders' Equity |
151,382,541.73 |
107,844,777.75 |
85,312,966.51 |
|
Total Liabilities &
Shareholders' Equity |
176,052,565.75 |
147,902,307.34 |
106,456,229.66 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
702,757,149.71 |
626,171,339.24 |
545,756,252.84 |
|
Other Income |
5,374,827.62 |
10,563,035.30 |
1,602,834.29 |
|
Total Revenues |
708,131,977.33 |
636,734,374.54 |
547,359,087.13 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
539,813,325.16 |
485,461,415.05 |
463,633,976.45 |
|
Selling Expenses |
31,317,767.96 |
31,650,571.51 |
42,433,178.65 |
|
Administrative Expenses |
2,541,785.71 |
2,138,441.30 |
1,447,881.90 |
|
Total Expenses |
573,672,878.83 |
519,250,427.86 |
507,515,037.00 |
|
|
|
|
|
|
Profit /[Loss] before Income Tax |
134,459,098.50 |
117,483,946.68 |
39,844,050.13 |
|
Income Tax |
[30,921,334.52] |
[34,952,135.44] |
[11,853,646.07] |
|
Net Profit / [Loss] |
103,537,763.98 |
82,531,811.24 |
27,990,404.06 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
7.10 |
3.67 |
4.98 |
|
QUICK RATIO |
TIMES |
7.04 |
3.62 |
4.90 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1,619.08 |
1,023.41 |
776.80 |
|
TOTAL ASSETS TURNOVER |
TIMES |
3.99 |
4.23 |
5.13 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
0.30 |
0.48 |
0.78 |
|
INVENTORY TURNOVER |
TIMES |
1,212.61 |
757.00 |
468.67 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
63.18 |
65.52 |
60.00 |
|
RECEIVABLES TURNOVER |
TIMES |
5.78 |
5.57 |
6.08 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
4.32 |
8.37 |
11.03 |
|
CASH CONVERSION CYCLE |
DAYS |
59.17 |
57.64 |
49.75 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
76.81 |
77.53 |
84.95 |
|
SELLING & ADMINISTRATION |
% |
4.82 |
5.40 |
8.04 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
23.95 |
24.16 |
15.34 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
19.13 |
18.76 |
7.30 |
|
NET PROFIT MARGIN |
% |
14.73 |
13.18 |
5.13 |
|
RETURN ON EQUITY |
% |
68.39 |
76.53 |
32.81 |
|
RETURN ON ASSET |
% |
58.81 |
55.80 |
26.29 |
|
EARNING PER SHARE |
BAHT |
1,035.38 |
825.32 |
279.90 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.14 |
0.27 |
0.20 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.16 |
0.37 |
0.25 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
12.23 |
14.73 |
|
|
OPERATING PROFIT |
% |
14.45 |
194.86 |
|
|
NET PROFIT |
% |
25.45 |
194.86 |
|
|
FIXED ASSETS |
% |
(29.06) |
(12.91) |
|
|
TOTAL ASSETS |
% |
19.03 |
38.93 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 12.23%. Turnover has increased from THB
626,171,339.24 in 2011 to THB 702,757,149.71 in 2012. While net profit has
increased from THB 82,531,811.24 in 2011 to THB 103,537,763.98 in 2012. And
total assets has increased from THB 147,902,307.34 in 2011 to THB
176,052,565.75 in 2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
23.95 |
Impressive |
Industrial
Average |
11.66 |
|
Net Profit Margin |
14.73 |
Impressive |
Industrial
Average |
0.27 |
|
Return on Assets |
58.81 |
Impressive |
Industrial
Average |
0.79 |
|
Return on Equity |
68.39 |
Impressive |
Industrial
Average |
2.66 |
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 23.95%. 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 14.73%, 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
58.81%, 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 68.39%, 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 :
IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
7.10 |
Impressive |
Industrial
Average |
1.22 |
|
Quick Ratio |
7.04 |
|
|
|
|
Cash Conversion Cycle |
59.17 |
|
|
|
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 7.1 times in 2012, increased from 3.67 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 7.04 times in 2012,
increased from 3.62 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 60 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.14 |
Impressive |
Industrial
Average |
0.67 |
|
Debt to Equity Ratio |
0.16 |
Impressive |
Industrial
Average |
2.12 |
|
Times Interest Earned |
- |
|
Industrial
Average |
0.26 |
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.14 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 Downtrend
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
1,619.08 |
Impressive |
Industrial
Average |
1.84 |
|
Total Assets Turnover |
3.99 |
Impressive |
Industrial
Average |
2.58 |
|
Inventory Conversion Period |
0.30 |
|
|
|
|
Inventory Turnover |
1,212.61 |
Impressive |
Industrial
Average |
4.65 |
|
Receivables Conversion Period |
63.18 |
|
|
|
|
Receivables Turnover |
5.78 |
Impressive |
Industrial
Average |
4.19 |
|
Payables Conversion Period |
4.32 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.78 and 5.57 in
2012 and 2011 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 2012
increased from 2011. 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 is
0 day at the end of 2011, same
no. of days
as in 2012. This represents a positive trend. And
Inventory turnover has increased from 757 times in year 2011 to 1212.61 times
in year 2012.
The company's Total Asset Turnover is calculated as 3.99 times and 4.23
times in 2012 and 2011 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 Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.11 |
|
|
1 |
Rs.94.77 |
|
Euro |
1 |
Rs.81.54 |
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.