MIRA INFORM REPORT
|
Report Date : |
09.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
TMBP 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 : |
05.01.2006 |
|
|
|
|
Com. Reg. No.: |
0105549001500 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject
engaged in manufacturing of
“VOLVO” automotive assembly,
including auto body
assembling, painting, modifying
and repairing for
truck and bus. |
|
|
|
|
No. of Employees : |
350 |
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 – 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
TMBP 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] 2338-1930
E-MAIL
ADDRESS : nongwan.amaravej@volvo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2006
REGISTRATION
NO. : 0105549001500
TAX
ID NO. : 3032026086
CAPITAL REGISTERED : BHT. 95,000,000
CAPITAL PAID-UP : BHT.
95,000,000
SHAREHOLDER’S PROPORTION : THAI :
50.00%
SWEDISH :
50.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. BO TORE
PALMQVIST, SWEDISH
MANAGING DIRECTOR
NO.
OF STAFF : 350
LINES
OF BUSINESS : AUTOMOTIVE 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 January 5,
2006 as a
private limited company under
the registered name
TMBP LIMITED by
Thai and Swedish
groups, with the
business objective to operate
as an automotive
assembler of “VOLVO”
bus and truck.
It currently employs
approximately 350 staff.
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.
The
subject’s registered address
was initially located
at 1527 Sukhumvit 71
Rd., Suanluang, Bangkok
10250.
On
January 9, 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 subject’s
current operation address.
THE
BOARD OF DIRECTOR
|
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.
BUSINESS
OPERATIONS
The subject
is engaged in
manufacturing of “VOLVO”
automotive assembly, including
auto body assembling,
painting, modifying and
repairing for truck
and bus.
PURCHASE
Auto
engines, spare parts
and assembling equipment are
purchased from suppliers
both domestic and
overseas, mainly in
Sweden, Germany and
U.K.
MAJOR
SUPPLIERS
Thai-Swedish
Assembly Co., Ltd. : Thailand
Volvo
Car Corporation :
Sweden
SALES
100% of the
products is distributed
locally 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
Thai-Swedish Assembly Co.,
Ltd.
Business Type :
Manufacturer of automotive
assembly
Volvo Truck [Thailand]
Co., Ltd.
Business Type :
Authorized distributor of
“VOLVO” automobiles
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 to 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
TMB
Bank Public Co.,
Ltd.
The
Siam Commercial Bank
Public Co., Ltd.
EMPLOYMENT
The
subject currently employs
approximately 350 office
staff 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
European based company,
the leading supplier
of commercial transport
solutions providing products
such as trucks,
buses, parts and
related equipment. It
is a part of
The Volvo Group worldwide
working with efficiency
and high quality
standard.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 20,000,000 divided
into 200,000 shares
of Bht. 100
each with fully
paid.
On
November 25, 2008,
the registered capital
was increased to
Bht. 95,000,000 divided
into 950,000 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 |
474,997 |
50.00 |
|
Volvo Holding Sverige
AB. Nationality: Swedish Address : Gothenburg,
Sweden |
474,997 |
50.00 |
|
Volvo Truck [Thailand] Co., Ltd. Nationality: Thai Address : 45/2
Moo 7, KM. 26,
Bangna-Trad Rd., T.
Bangsaothong, A. Bangsaothong,
Samutprakarn |
6 |
- |
Total Shareholders : 3
Share
Structure
[as
at April 29, 2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
475,003 |
50.00 |
|
Foreign-Swedish |
1 |
474,997 |
50.00 |
|
Total |
3 |
950,000 |
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 |
19,656,326 |
8,093,911 |
2,180,114 |
|
Trade Accounts Receivable - Receivable |
64,470,845 |
34,943,972 |
25,791,182 |
|
Related Company-Related Company
|
26,434,571 |
9,392,097 |
656,292 |
|
Refundable Value Added Tax |
7,654,012 |
3,774,020 |
1,354,030 |
|
Inventories |
42,620,822 |
33,870,865 |
29,827,120 |
|
Other Current Assets
|
5,255,012 |
5,519,771 |
2,653,690 |
|
|
|
|
|
|
Total Current Assets
|
166,091,588 |
95,594,636 |
62,462,428 |
|
|
|
|
|
|
Fixed Assets |
445,781,360 |
245,723,251 |
110,203,631 |
|
Deposit |
- |
- |
54,570 |
|
Total Assets |
611,872,948 |
341,317,887 |
172,720,629 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable - Other Company |
8,322,699 |
6,245,173 |
6,026,373 |
|
Trade Accounts Payable - Related Company |
7,482,861 |
4,307,186 |
8,629,315 |
|
Related Company Payable |
7,457,652 |
6,520,200 |
1,922,960 |
|
Other Payable- Bonuses
Paid of Contract |
4,652,155 |
11,897,598 |
- |
|
Short-term Loan from Financial Institutions |
341,000,000 |
121,000,000 |
43,000,000 |
|
Accrued Income Tax |
2,827,639 |
10,418,310 |
522,555 |
|
Other Current Liabilities |
64,661,441 |
45,235,426 |
16,076,388 |
|
|
|
|
|
|
Total Current Liabilities |
436,404,447 |
205,623,893 |
76,177,591 |
|
|
|
|
|
|
Employee Benefits Obligation |
5,610,417 |
3,132,616 |
- |
|
Total Liabilities |
442,014,864 |
208,756,509 |
76,177,591 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 950,000 shares |
95,000,000 |
95,000,000 |
95,000,000 |
|
|
|
|
|
|
Capital Paid |
95,000,000 |
95,000,000 |
95,000,000 |
|
Retained Earning
Unappropriated |
74,858,084 |
37,561,378 |
1,543,038 |
|
Total Shareholders' Equity |
169,858,084 |
132,561,378 |
96,543,038 |
|
Total Liabilities &
Shareholders' Equity |
611,872,948 |
341,317,887 |
172,720,629 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
429,287,026 |
366,538,318 |
313,593,405 |
|
Other Income |
18,267,908 |
4,092,901 |
12,765,703 |
|
Total Revenues |
447,554,934 |
370,631,219 |
326,359,108 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Change in Finished Goods and Work in
Process |
2,391,616 |
[3,489,003] |
9,160,672 |
|
Raw Material and Material Supplies |
224,994,399 |
192,217,141 |
162,563,344 |
|
Rental Expenses |
12,348,835 |
10,243,406 |
15,766,163 |
|
Management Expenses |
30,710,039 |
29,033,063 |
27,311,653 |
|
Expenses for Employees |
10,536,104 |
11,648,876 |
29,433,823 |
|
Bonuses Paid of
Contract |
62,569,021 |
47,063,811 |
- |
|
Depreciation |
4,652,155 |
11,897,598 |
12,667,563 |
|
Maintenance Expenses |
4,714,971 |
4,394,983 |
- |
|
Electricity Charge |
6,196,945 |
5,950,045 |
- |
|
Other Expenses |
32,272,591 |
7,019,915 |
28,080,318 |
|
Total Expenses |
391,386,676 |
315,979,835 |
284,983,536 |
|
|
|
|
|
|
Profit before Financial Cost & Income
Tax |
56,168,258 |
54,651,384 |
41,375,572 |
|
Financial Costs - Interest |
[8,376,616] |
[2,444,302] |
[2,652,432] |
|
Profit before Income
Tax |
47,791,642 |
52,207,082 |
38,723,140 |
|
Income Tax |
[10,494,936] |
[16,188,742] |
[2,328,821] |
|
|
|
|
|
|
Net Profit / [Loss] |
37,296,706 |
36,018,340 |
36,394,319 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.38 |
0.46 |
0.82 |
|
QUICK RATIO |
TIMES |
0.27 |
0.27 |
0.39 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.96 |
1.49 |
2.85 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.70 |
1.07 |
1.82 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
69.14 |
64.32 |
66.97 |
|
INVENTORY TURNOVER |
TIMES |
5.28 |
5.67 |
5.45 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
54.82 |
34.80 |
30.02 |
|
RECEIVABLES TURNOVER |
TIMES |
6.66 |
10.49 |
12.16 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
13.50 |
11.86 |
13.53 |
|
CASH CONVERSION CYCLE |
DAYS |
110.46 |
87.26 |
83.46 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
52.41 |
52.44 |
51.84 |
|
SELLING & ADMINISTRATION |
% |
38.20 |
34.72 |
36.12 |
|
INTEREST |
% |
1.95 |
0.67 |
0.85 |
|
GROSS PROFIT MARGIN |
% |
51.84 |
48.68 |
52.23 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
13.08 |
14.91 |
13.19 |
|
NET PROFIT MARGIN |
% |
8.69 |
9.83 |
11.61 |
|
RETURN ON EQUITY |
% |
21.96 |
27.17 |
37.70 |
|
RETURN ON ASSET |
% |
6.10 |
10.55 |
21.07 |
|
EARNING PER SHARE |
BAHT |
39.26 |
37.91 |
38.31 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.72 |
0.61 |
0.44 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.60 |
1.57 |
0.79 |
|
TIME INTEREST EARNED |
TIMES |
6.71 |
22.36 |
15.60 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
17.12 |
16.88 |
|
|
OPERATING PROFIT |
% |
2.78 |
32.09 |
|
|
NET PROFIT |
% |
3.55 |
(1.03) |
|
|
FIXED ASSETS |
% |
81.42 |
122.97 |
|
|
TOTAL ASSETS |
% |
79.27 |
97.61 |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 17.12%. Turnover has increased from THB
366,538,318.00 in 2011 to THB 429,287,026.00 in 2012. While net profit has
increased from THB 36,018,340.00 in 2011 to THB 37,296,706.00 in 2012. And
total assets has increased from THB 341,317,887.00 in 2011 to THB
611,872,948.00 in 2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
51.84 |
Impressive |
Industrial
Average |
45.43 |
|
Net Profit Margin |
8.69 |
Impressive |
Industrial
Average |
1.18 |
|
Return on Assets |
6.10 |
Impressive |
Industrial
Average |
4.84 |
|
Return on Equity |
21.96 |
Impressive |
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 51.84%. 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 8.69%, 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
6.1%, 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 21.96%, 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 Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.38 |
Risky |
Industrial
Average |
7.06 |
|
Quick Ratio |
0.27 |
|
|
|
|
Cash Conversion Cycle |
110.46 |
|
|
|
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 0.38 times in 2012, decreased from 0.46 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,
same figure as 0.27 times
in 2011, 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 111 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.72 |
Acceptable |
Industrial
Average |
0.61 |
|
Debt to Equity Ratio |
2.60 |
Risky |
Industrial
Average |
1.65 |
|
Times Interest Earned |
6.71 |
Impressive |
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 6.71 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 0.72 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 |
0.96 |
Deteriorated |
Industrial
Average |
22.44 |
|
Total Assets Turnover |
0.70 |
Deteriorated |
Industrial
Average |
2.06 |
|
Inventory Conversion Period |
69.14 |
|
|
|
|
Inventory Turnover |
5.28 |
Deteriorated |
Industrial
Average |
11.17 |
|
Receivables Conversion Period |
54.82 |
|
|
|
|
Receivables Turnover |
6.66 |
Acceptable |
Industrial
Average |
9.59 |
|
Payables Conversion Period |
13.50 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.66 and 10.49
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
decreased from 2011. This would suggest the company had deteriorated 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 increased from 64 days at the
end of 2011 to 69 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 5.67 times in year 2011 to 5.28 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.7 times and 1.07
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.