MIRA INFORM REPORT
|
Report Date : |
21.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
PRAWIT
AUTO PARTS IMPORT
EXPORT CO., LTD. |
|
|
|
|
Registered Office : |
21-21/1 Moo 14, Boromratchonnee Road, Chimplee, Talingchan, Bangkok 10170 |
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
02.02.1993 |
|
|
|
|
Com. Reg. No.: |
0105536011731 [Former
: 974/2536] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in distributing various kinds
of spare parts
for truck and
bus, as well
as providing rental
service of bus |
|
|
|
|
No. of Employees : |
08 |
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
PRAWIT AUTO PARTS
IMPORT EXPORT CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 21-21/1 MOO
14, BOROMRATCHONNEE ROAD,
CHIMPLEE, TALINGCHAN,
BANGKOK 10170
TELEPHONE : [66] 2435-7490-2,
081 818-4353
FAX :
[66] 2435-7419
E-MAIL
ADDRESS : prawitauto@yahoo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1993
REGISTRATION
NO. : 0105536011731 [Former
: 974/2536]
TAX
ID NO. : 3011226452
CAPITAL REGISTERED : BHT. 8,000,000
CAPITAL PAID-UP : BHT.
8,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PRAWIT JONGRERKNGAM, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 8
LINES
OF BUSINESS : AUTOMOBILE SPARE
PARTS
IMPORTER, DISTRIBUTOR
& SERVICE PROVIDER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was
established on February
2, 1993 as
a private limited
company under the
name style PRAWIT
AUTO PARTS IMPORT
EXPORT CO., LTD. by Thai group,
Jongrerkngam family. Its
business objective is to import
and distribute various
kinds of automotive
parts, mainly for
truck and bus
to domestic market.
Subject currently employs
8 staff.
The subject’s registered
address is 21-21/1
Moo 14, Boromratchonnee Rd.,
Chimplee, Talingchan, Bangkok
10170, and this
is the subject’s
current operation address
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Chintana Jongrerkngam |
|
Thai |
69 |
|
Mr. Prawit Jongrerkngam |
|
Thai |
44 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Prawit Jongrerkngam is
the Managing Director.
He is Thai
nationality with the
age of 44
years old.
Ms. Navaporn Jongrerkngam is
the Marketing Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in distributing
various kinds of
spare parts for
truck and bus,
as well as
providing rental service
of bus. The
products are as
follows:
1. Engines
-
Volvo D13A
400 engine
-
Volvo
D12A420-EC96-420-PK-309,1786200
engine
-
Scania
SC-4-DSC-911-220 PK-Z, 256901
engine
-
Benz
Common Rail engine
-
Man-D2865-LF-05, 61B740E2 engine
2. Gear
- Volvo-SR-2000 gear
- Scania-GR-870 gear
- Mercedes-Benz-165-112 gear
- Man-Mercedes-DAF-ZF-9S109 gear
3. Tractor
- Volvo-FM-9-380-Globetrotter tractor
- Man-TGA-18-410-XL tractor
- Scania -124
tractor
4. Spare Parts
Spare parts
are varies, such
as engine, exhaust,
wheeling, electrical,
steering, brake,
body, fuel, filler,
crush, gear, axle,
suspension, and others
MAJOR BRANDS
“MERCEDES BENZ”, “ISUZU”,
“HINO”, “SCANIA”, “MAN”,
“VOLVO”, “NISSAN”, “MERITOR”,
“CORTECO”, “BALE”, “LEMFORDER”,
“DUNLOP”, “KONGSBERG”, “WEBCO”,
“BOSCH”, “MAHLE”, “SKF” and
etc.
PURCHASE
90% of the
products is purchased
from local suppliers, and the
remaining 10% is
imported from Singapore,
U.K., U.S.A., Germany,
Republic of China
and Japan.
MAJOR SUPPLIERS
Mahle Siam Filler
System Co., Ltd. : Thailand
ZF Friedrichshalen AG. : Germany
Corteco Asia Company
Pte. Ltd. : Singapore
Freudenbery & Co. KG. : Germany
Meritor Inc. : U.S.A.
SALES [LOCAL]
100% of its
products is sold
locally to Thai State
Enterprise, wholesalers and
end-users.
RELATED/AFFILIATED COMPANY
Magic Routes Co.,
Ltd.
Business Type
: Bus rental
service
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 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight.
BANKING
Bangkok Bank Public
Co., Ltd. [Boromratchonnee Branch]
Kasikornbank Public Co., Ltd.
EMPLOYMENT
The subject employs
8 staff. [office
and sales staff]
LOCATION DETAILS
The premise is
rented for operating
office in a
4 storey building
of 2 row
shop houses at the
heading address. Premise
is located in
commercial/residential area.
COMMENT
The replacement market
is a key
for its business,
but economic slowdown
was affected subject’s
sales in the
previous year. However,
growth has seen
at slow pace
this year, which
estimated that subject
would earn a
negative result.
FINANCIAL INFORMATION
The capital was registered
at Bht. 1 million, divided
into 10,000 shares of
Bht. 100 each.
On August 5,
1999 the capital
was increased to
Bht. 8 million,
divided into 80,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30,
2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Prawit Jongrerkngam Nationality: Thai Address : 147/140
Boromratchonnee Rd., Arooonamarin, Bangkoknoi,
Bangkok |
25,000 |
31.25 |
|
Mrs. Chintana Jongrerkngam Nationality: Thai Address : 21
Moo 9, Boromratchonnee Rd.,
Chimplee, Talingchan,
Bangkok |
15,000 |
18.75 |
|
Ms. Patranis Yanutboonsab Nationality: Thai Address : 147/140
Boromratchonnee Rd.,
Arooonamarin, Bangkoknoi, Bangkok |
10,000 |
12.50 |
|
Ms. Navaporn Jongrerkngam Nationality: Thai Address : 21
Moo 9, Boromratchonnee Rd.,
Chimplee, Talingchan, Bangkok |
10,000 |
12.50 |
|
Mr. Sutthichai Jongrerkngam Nationality: Thai Address : 21
Moo 9, Boromratchonnee Rd.,
Chimplee, Talingchan, Bangkok |
10,000 |
12.50 |
|
Mr. Chanon Jongrerkngam Nationality: Thai Address : 147/29
Boromratchonnee Rd.,
Arooonamarin, Bangkoknoi, Bangkok |
10,000 |
12.50 |
Total Shareholders : 6
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
80,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
6 |
80,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Rungthip Charoendamrongkiat No.
5786
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 |
228,458.56 |
63,682.79 |
168,888.35 |
|
Trade Accounts & Other
Receivable |
1,397,138.06 |
3,732,282.28 |
2,585,402.21 |
|
Inventories |
22,608,419.39 |
19,063,658.70 |
20,988,319.51 |
|
Other Current Assets
|
45,163.05 |
46,807.75 |
221,279.33 |
|
|
|
|
|
|
Total Current Assets
|
24,279,179.06 |
22,906,431.52 |
23,963,889.40 |
|
|
|
|
|
|
Fixed Assets |
3,320,141.71 |
3,844,781.53 |
3,816,799.26 |
|
Total Assets |
27,599,320.77 |
26,751,213.05 |
27,780,688.66 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
775,351.35 |
1,336,699.04 |
947,804.21 |
|
Current Portion of
Hire-purchase Payable |
233,955.14 |
233,955.14 |
86,836.82 |
|
Accrued Income Tax |
32,799.57 |
151,325.47 |
194,528.99 |
|
Other Current Liabilities |
8,883.25 |
47,868.12 |
8,916.07 |
|
|
|
|
|
|
Total Current Liabilities |
1,050,989.31 |
1,769,847.77 |
1,238,086.09 |
|
Long-term Loan |
11,715,398.43 |
10,279,358.27 |
12,651,681.95 |
|
Hire-purchase Payable, Net
of Current Portion |
107,528.21 |
341,483.34 |
195,382.76 |
|
Total Liabilities |
12,873,915.95 |
12,390,689.38 |
14,085,150.80 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 80,000 shares |
8,000,000.00 |
8,000,000.00 |
8,000,000.00 |
|
|
|
|
|
|
Capital Paid |
8,000,000.00 |
8,000,000.00 |
8,000,000.00 |
|
Retained Earnings Unappropriated
|
6,725,404.82 |
6,360,523.67 |
5,695,537.86 |
|
Total Shareholders' Equity |
14,725,404.82 |
14,360,523.67 |
13,695,537.86 |
|
Total Liabilities & Shareholders' Equity |
27,599,320.77 |
26,751,213.05 |
27,780,688.66 |
PROFIT & LOSS
ACCOUNT
|
Sale |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
10,203,449.69 |
17,384,336.89 |
14,368,464.21 |
|
Other Income |
17,735.00 |
767.00 |
34,538.26 |
|
Total Sales |
10,221,184.69 |
17,385,103.89 |
14,403,002.47 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
4,888,934.46 |
11,026,212.39 |
8,666,247.10 |
|
Selling Expenses |
40,470.20 |
545,458.95 |
133,022.63 |
|
Administrative Expenses |
4,725,454.44 |
4,834,462.30 |
4,556,234.46 |
|
Total Expenses |
9,654,859.10 |
16,406,133.64 |
13,355,504.19 |
|
|
|
|
|
|
Profit / [Loss] before
Financial Cost & Income
Tax |
566,325.59 |
978,970.25 |
1,047,498.28 |
|
Financial Costs |
[18,644.87] |
[12,658.97] |
[13,787.40] |
|
Income Tax |
[182,799.57] |
[301,325.47] |
[317,528.99] |
|
|
|
|
|
|
Net Profit / [Loss] |
364,881.15 |
664,985.81 |
716,181.89 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
23.10 |
12.94 |
19.36 |
|
QUICK RATIO |
TIMES |
1.55 |
2.14 |
2.22 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.07 |
4.52 |
3.76 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.37 |
0.65 |
0.52 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
1,687.91 |
631.06 |
883.97 |
|
INVENTORY TURNOVER |
TIMES |
0.22 |
0.58 |
0.41 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
49.98 |
78.36 |
65.68 |
|
RECEIVABLES TURNOVER |
TIMES |
7.30 |
4.66 |
5.56 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
57.89 |
44.25 |
39.92 |
|
CASH CONVERSION CYCLE |
DAYS |
1,680.00 |
665.18 |
909.73 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
47.91 |
63.43 |
60.31 |
|
SELLING & ADMINISTRATION |
% |
46.71 |
30.95 |
32.64 |
|
INTEREST |
% |
0.18 |
0.07 |
0.10 |
|
GROSS PROFIT MARGIN |
% |
52.26 |
36.58 |
39.93 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.55 |
5.63 |
7.29 |
|
NET PROFIT MARGIN |
% |
3.58 |
3.83 |
4.98 |
|
RETURN ON EQUITY |
% |
2.48 |
4.63 |
5.23 |
|
RETURN ON ASSET |
% |
1.32 |
2.49 |
2.58 |
|
EARNING PER SHARE |
BAHT |
4.56 |
8.31 |
8.95 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.47 |
0.46 |
0.51 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.87 |
0.86 |
1.03 |
|
TIME INTEREST EARNED |
TIMES |
30.37 |
77.33 |
75.98 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(41.31) |
20.99 |
|
|
OPERATING PROFIT |
% |
(42.15) |
(6.54) |
|
|
NET PROFIT |
% |
(45.13) |
(7.15) |
|
|
FIXED ASSETS |
% |
(13.65) |
0.73 |
|
|
TOTAL ASSETS |
% |
3.17 |
(3.71) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -41.31%. Turnover has decreased from THB 17,384,336.89
in 2011 to THB 10,203,449.69 in 2012. While net profit has decreased from THB
664,985.81 in 2011 to THB 364,881.15 in 2012. And total assets has increased
from THB 26,751,213.05 in 2011 to THB 27,599,320.77 in 2012.
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
52.26 |
Impressive |
Industrial Average |
24.83 |
|
Net Profit Margin |
3.58 |
Impressive |
Industrial Average |
1.95 |
|
Return on Assets |
1.32 |
Deteriorated |
Industrial Average |
3.68 |
|
Return on Equity |
2.48 |
Deteriorated |
Industrial Average |
10.11 |
Gross Profit Margin used to assess a firm's financial health by revealing
the proportion of money left over from sales 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 52.26%. 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 3.58%,
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. When compared with the
industry average, it was lower, the company's figure is 1.32%.
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 2.48%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
23.10 |
Impressive |
Industrial Average |
1.57 |
|
Quick Ratio |
1.55 |
|
|
|
|
Cash Conversion Cycle |
1,680.00 |
|
|
|
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 23.1 times in 2012, increased from 12.94 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 1.55 times in 2012,
decreased from 2.14 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 1681 days.
Trend of the average
competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.47 |
Impressive |
Industrial Average |
0.63 |
|
Debt to Equity Ratio |
0.87 |
Impressive |
Industrial Average |
1.71 |
|
Times Interest Earned |
30.37 |
Impressive |
Industrial Average |
0.85 |
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 30.38 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 0.47 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 Uptrend
Times Interest Earned Downtrend
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.07 |
Impressive |
Industrial Average |
1.57 |
|
Total Assets Turnover |
0.37 |
Deteriorated |
Industrial Average |
1.90 |
|
Inventory Conversion Period |
1,687.91 |
|
|
|
|
Inventory Turnover |
0.22 |
Deteriorated |
Industrial Average |
3.89 |
|
Receivables Conversion Period |
49.98 |
|
|
|
|
Receivables Turnover |
7.30 |
Impressive |
Industrial Average |
3.19 |
|
Payables Conversion Period |
57.89 |
|
|
|
The company's Account Receivable Ratio is calculated as 7.30 and 4.66 in
2012 and 2011 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate sale. 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 has increased from 631 days at the
end of 2011 to 1688 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 0.58 times in year 2011 to 0.22 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.37 times and 0.65
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 Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.73 |
|
UK Pound |
1 |
Rs.99.79 |
|
Euro |
1 |
Rs.85.07 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.