MIRA INFORM REPORT
|
Report Date : |
09.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
THAI-SWEDISH ASSEMBLY
COMPANY LIMITED |
|
|
|
|
Registered Office : |
35/1 Moo 7, KM. 25, Bangna-Trad
Rd., T. Bangsaothong, A. Bangsaothong, Samutprakarn 10540 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
03.04.1974 |
|
|
|
|
Com. Reg. No.: |
0105517004163 [Former :
415/2517] |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
The subject’s activity
is an assembler
of “VOLVO” passenger
cars, trucks and
buses, with the
production capacity of
40 units per
day. |
|
|
|
|
No. of Employees : |
300 |
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 : |
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 – 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
THAI-SWEDISH ASSEMBLY
COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 35/1
MOO 7, KM. 25,
BANGNA-TRAD ROAD, T. BANGSAOTHONG,
A. BANGSAOTHONG,
SAMUTPRAKARN 10540,
THAILAND
TELEPHONE : [66] 2707-1721-8
FAX :
[66] 2338-1935
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1974
REGISTRATION
NO. : 0105517004163 [Former : 415/2517]
TAX
ID NO. : 3101021172
CAPITAL REGISTERED : BHT. 50,000,000
CAPITAL PAID-UP : BHT.
50,000,000
SHAREHOLDER’S PROPORTION : THAI :
50.00%
SWEDISH :
50.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : MR.
BO TORE PALMQVIST,
SWEDISH
EXECUTIVE : MANAGING DIRECTOR
NO. OF
STAFF : 300
LINES
OF BUSINESS : AUTOMOBILES
ASSEMBLER
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 April
3, 1974 as
a private limited
company under the registered
name THAI-SWEDISH ASSEMBLY
COMPANY LIMITED, by
Thai and Swedish
Groups. It was
a joint venture
between Swedish Motors
Co., Ltd., and
Volvo Car Corporation
Ltd, with the
business objective to
manufacture automotive assembly
in Thailand.
Presently, the subject
is a joint
venture among Volvo
Group [Thailand] Co.,
Ltd., Volvo Holding
Sverige AB., and
Volvo Truck [Thailand]
Co., Ltd. It
is also a
member of The Volvo
Group, worldwide. Subject
currently employs approximately
300 staff.
The subject’s registered address was
initially located at
1527 Sukhumvit 71 Rd., Suanluang,
Bangkok 10250.
On March 2,
2009, its registered
address was relocated
to 35/1 Moo 7, KM.
25, Bangna-Trad Rd.,
T. Bangsaothong, A. Bangsaothong,
Samutprakarn 10540, and
this is the
same current subject’s
operating address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Bo Tore Palmqvist |
|
Swedish |
57 |
|
Ms. Sanlaya Juengyingsomboondee |
|
Thai |
49 |
|
Mr. Harald Jens Wergeland |
|
Norwegian |
50 |
AUTHORIZED
PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Bo Tore Palmqvist
is the Managing
Director.
He is Swedish
nationality with the
age of 57
years old.
Mr. Prasert Thamarat
is the Operation
Director.
He is Thai
nationality.
Mr. Pairat Sa-udom is
the Human Resources
Director.
He is Thai
nationality.
BUSINESS
OPERATIONS
The subject’s activity
is an assembler
of “VOLVO” passenger
cars, trucks and
buses, with the
production capacity of
40 units per
day.
PURCHASE
Most of automobile
parts and accessories
are imported from
Sweden, Germany, Indonesia
and United Kingdom,
the remaining is
purchased from local
supplier.
MAJOR
SUPPLIER
Volvo Car Corporation : Sweden
SALES
[LOCAL]
100% of its
products is sold
by Volvo Group
[Thailand] Co., Ltd.,
and Volvo Truck
[Thailand] Co., Ltd.,
the related companies.
RELATED
AND AFFILIATED COMPANIES
Volvo Group [Thailand]
Co., Ltd.
Business Type :
Manufacturer of automotive
assembly
Volvo Truck [Thailand]
Co., Ltd.
Business Type :
Authorized distributor of
“VOLVO” automobiles
TMBP LIMITED
Business Type :
Manufacturer of automotive
assembly
CREDIT
Sales are by
cash or on
the credits term
of 30-60-90 days.
Local bills are
paid by cash
or on the
credits term of
30-60-90 days.
Imports are by
L/C at sight
or T/T.
BANKING
The Siam Commercial
Bank Public Co.,
Ltd.
[Head Office :
9 Ratchadapisek Rd.,
Jatujak, Bangkok 10900]
EMPLOYMENT
The subject employs
approximately 300 office
staff, engineers and
factory workers.
LOCATION
DETAILS
The premise is
owned for operating
office, factory and
warehouse at the
heading address on around
27,000 square meters
of area. Premise
is located in
an industrial area.
COMMENT
The subject is
a wholly owned
subsidiary of Volvo
Group [Thailand] Co.,
Ltd. The subject’s
plant is near
Bangkok covering 27,000
square meters of
area. The plant
is the luxury
car factory in Thailand that
received both ISO 9002
and 14001 certifications.
These factories are not only the assembling
plant of truck for Thailand but
they are for neighboring countries,
the country in Asia, Australia and New Zealand.
FINANCIAL INFORMATION
The capital was
registered at Bht.
20 million, divided
into 200,000 shares
of Bht. 100
each.
The capital was
increased later as
follows:
Bht. 25,000,000
on September 25,
1992
Bht. 50,000,000
on January 23, 2012
The latest registered
capital was increased
to Bht. 50,000,000
divided into 500,000
shares of Bht.
100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
[as at April
29, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Volvo Group [Thailand]
Co., Ltd. [Former : Volvo Truck
& Bus [Thailand]
Co., Ltd.] Nationality: Thai Address : 45/2
Moo 7, KM. 26,
Bangna-Trad Rd., T.
Bangsaothong, A. Bangsaothong,
Samutprakarn |
250,005 |
50.00 |
|
Volvo Holding Sverige
AB. Nationality: Swedish Address : Gothenburg,
Sweden |
249,990 |
50.00 |
|
Volvo Truck [Thailand] Co., Ltd. Nationality: Thai Address : 45/2
Moo 7, KM. 26,
Bangna-Trad Rd., T. Bangsaothong, A. Bangsaothong,
Samutprakarn |
5 |
- |
Total Shareholders : 3
Share Structure [as
at April 29,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
250,010 |
50.00 |
|
Foreign - Swedish |
1 |
249,990 |
50.00 |
|
Total |
3 |
500,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Charnchai Chaiprasit No.
3760
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
44,488,390 |
69,705,245 |
157,096,114 |
|
Trade Accounts Receivable - Related
Company |
29,081,439 |
14,360,037 |
7,862,649 |
|
Trade Accounts Receivable - Other Company |
- |
- |
2,778,330 |
|
Accounts Receivable Related
Company |
11,990,388 |
16,754,921 |
5,255,806 |
|
Other Receivable |
375,640 |
1,670,500 |
4,512,500 |
|
Inventories |
30,476,659 |
2,559,259 |
1,183,208 |
|
Rent Paid to
Related Parties - The Amortization Within
One Year |
729,000 |
729,000 |
729,000 |
|
Withholding Tax |
11,375,452 |
9,213,243 |
7,751,180 |
|
Other Current Assets
|
5,351,329 |
2,915,505 |
2,154,612 |
|
|
|
|
|
|
Total Current Assets
|
133,868,297 |
117,907,710 |
189,323,399 |
|
Fixed Assets |
392,668,388 |
127,607,836 |
129,275,220 |
|
Rent Paid to
Related Parties |
15,248,250 |
15,977,250 |
16,706,250 |
|
Other Assets |
165,000 |
46,152 |
43,552 |
|
Total Assets |
541,949,935 |
261,538,948 |
335,348,421 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable - Other Company |
3,599,149 |
2,363,188 |
84,364,770 |
|
Account Payable Related
Company |
10,485,034 |
1,865,191 |
1,923,021 |
|
Other Payable - Bonus Paid of Contract |
7,067,996 |
18,956,460 |
- |
|
Current Portion of
Financial Lease Contract Liabilities |
585,542 |
- |
- |
|
Short-term Loan from Financial Institutions |
252,410,000 |
- |
- |
|
Other Current Liabilities |
39,497,556 |
26,375,591 |
17,377,469 |
|
|
|
|
|
|
Total Current Liabilities |
313,645,277 |
49,560,430 |
103,665,260 |
|
Financial Lease Contract Liabilities, Net |
1,012,550 |
- |
- |
|
Employee Benefits Obligation |
8,730,885 |
5,260,998 |
- |
|
Total Liabilities |
323,388,712 |
54,821,428 |
103,665,260 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 500,000 shares in 2012; 250,000
shares in 2011 & 2010 |
50,000,000 |
25,000,000 |
25,000,000 |
|
|
|
|
|
|
Capital Paid |
50,000,000 |
25,000,000 |
25,000,000 |
|
Premium on Share Capital |
75,000,000 |
75,000,000 |
75,000,000 |
|
Retained Earnings: Appropriated for Statutory Reserve |
2,500,000 |
2,500,000 |
2,500,000 |
|
Unappropriated |
91,061,223 |
104,217,520 |
129,183,161 |
|
Total Shareholders' Equity |
218,561,223 |
206,717,520 |
231,683,161 |
|
Total Liabilities & Shareholders' Equity |
541,949,935 |
261,538,948 |
335,348,421 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
211,775,714 |
153,321,333 |
1,013,944,829 |
|
Other Income |
34,926,853 |
15,440,908 |
17,196,741 |
|
Total Revenues |
246,702,567 |
168,762,241 |
1,031,141,570 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Change in Finished Goods and Work in Process |
[820,226] |
[298,276] |
7,620,174 |
|
Raw Material and Material Supplies |
55,887,726 |
8,588,242 |
822,054,387 |
|
Employees Expenses |
124,067,195 |
102,431,980 |
81,974,991 |
|
Depreciation |
13,653,612 |
18,250,235 |
21,294,793 |
|
Bonuses Paid of
Contract |
7,067,996 |
18,956,460 |
- |
|
Maintenance Expenses |
8,202,098 |
6,170,139 |
- |
|
Electricity Charge |
9,456,207 |
7,008,982 |
- |
|
Fines under the Contract |
- |
- |
12,310,000 |
|
Other Expenses |
40,111,451 |
32,620,120 |
41,987,492 |
|
Total Expenses |
257,626,059 |
193,727,882 |
987,241,837 |
|
|
|
|
|
|
Profit/ [Loss] before Financial Cost |
[10,923,492] |
[24,965,641] |
43,899,733 |
|
Financial Costs - Interest |
[2,232,805] |
- |
[111,233] |
|
|
|
|
|
|
Net Profit / [Loss] |
[13,156,297] |
[24,965,641] |
43,788,500 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.43 |
2.38 |
1.83 |
|
QUICK RATIO |
TIMES |
0.27 |
2.07 |
1.71 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.54 |
1.20 |
7.84 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.39 |
0.59 |
3.02 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
199.04 |
108.77 |
0.53 |
|
INVENTORY TURNOVER |
TIMES |
1.83 |
3.36 |
694.77 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
- |
- |
1.00 |
|
RECEIVABLES TURNOVER |
TIMES |
- |
- |
364.95 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
23.51 |
100.44 |
37.46 |
|
CASH CONVERSION CYCLE |
DAYS |
175.54 |
8.33 |
(35.93) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
26.39 |
5.60 |
81.07 |
|
SELLING & ADMINISTRATION |
% |
95.65 |
120.95 |
15.54 |
|
INTEREST |
% |
1.05 |
- |
0.01 |
|
GROSS PROFIT MARGIN |
% |
90.10 |
104.47 |
20.62 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(5.16) |
(16.28) |
4.33 |
|
NET PROFIT MARGIN |
% |
(6.21) |
(16.28) |
4.32 |
|
RETURN ON EQUITY |
% |
(6.02) |
(12.08) |
18.90 |
|
RETURN ON ASSET |
% |
(2.43) |
(9.55) |
13.06 |
|
EARNING PER SHARE |
BAHT |
(26.31) |
(99.86) |
175.15 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.60 |
0.21 |
0.31 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.48 |
0.27 |
0.45 |
|
TIME INTEREST EARNED |
TIMES |
(4.89) |
- |
394.66 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
38.13 |
(84.88) |
|
|
OPERATING PROFIT |
% |
(56.25) |
(156.87) |
|
|
NET PROFIT |
% |
47.30 |
(157.01) |
|
|
FIXED ASSETS |
% |
207.71 |
(1.29) |
|
|
TOTAL ASSETS |
% |
107.22 |
(22.01) |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 38.13%. Turnover has increased from THB 153,321,333.00
in 2011 to THB 211,775,714.00 in 2012. While net profit has increased from THB
-24,965,641.00 in 2011 to THB -13,156,297.00 in 2012. And total assets has
increased from THB 261,538,948.00 in 2011 to THB 541,949,935.00 in 2012.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
90.10 |
Impressive |
Industrial
Average |
45.43 |
|
Net Profit Margin |
(6.21) |
Deteriorated |
Industrial
Average |
1.18 |
|
Return on Assets |
(2.43) |
Deteriorated |
Industrial
Average |
4.84 |
|
Return on Equity |
(6.02) |
Deteriorated |
Industrial
Average |
10.45 |
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 90.1%. 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 -6.21%.
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 -2.43%.
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 -6.02%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.43 |
Risky |
Industrial
Average |
7.06 |
|
Quick Ratio |
0.27 |
|
|
|
|
Cash Conversion Cycle |
175.54 |
|
|
|
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 0.43 times in 2012, decreased from 2.38 times, then the company may
not be efficiently using its current assets. 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 0.27 times in 2012,
decreased from 2.07 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 176 days.
Trend of the average
competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.60 |
Impressive |
Industrial
Average |
0.61 |
|
Debt to Equity Ratio |
1.48 |
Acceptable |
Industrial
Average |
1.65 |
|
Times Interest Earned |
(4.89) |
Risky |
Industrial
Average |
1.22 |
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 -4.9 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 0.6 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 Uptrend
Times Interest Earned Downtrend
ACTIVITY : RISKY
ACTIVITY RATIO
|
Fixed Assets Turnover |
0.54 |
Deteriorated |
Industrial
Average |
22.44 |
|
Total Assets Turnover |
0.39 |
Deteriorated |
Industrial
Average |
2.06 |
|
Inventory Conversion Period |
199.04 |
|
|
|
|
Inventory Turnover |
1.83 |
Deteriorated |
Industrial
Average |
11.17 |
|
Receivables Conversion Period |
- |
|
|
|
|
Receivables Turnover |
- |
|
Industrial
Average |
9.59 |
|
Payables Conversion Period |
23.51 |
|
|
|
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 increased from 109 days at the
end of 2011 to 199 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 3.36 times in year 2011 to 1.83 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.39 times and 0.59
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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.61.11 |
|
UK Pound |
1 |
Rs.94.77 |
|
Euro |
1 |
Rs.81.54 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.