MIRA
INFORM REPORT
|
Report Date : |
28.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
TRACK EQUIPMENT CO., LTD. |
|
|
|
|
Registered Office : |
49-52 Rongmuang Road, Rongmuang, Pathumwan, Bangkok 10330 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
12.01.1977 |
|
|
|
|
Com. Reg. No.: |
0105520000432 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer and Distributor of Tractor’s Equipment & Spare Parts |
|
|
|
|
No. of Employees : |
40 |
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 crisis 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
TRACK
EQUIPMENT CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 49-52
RONGMUANG ROAD, RONGMUANG,
PATHUMWAN, BANGKOK
10330, THAILAND
TELEPHONE : [66] 2214-3918,
2214-3886, 2214-2556, 2214-4614,
2214-5245
FAX :
[66] 2215-9775,
2215-5063
E-MAIL
ADDRESS : info@trackequipment.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1977
REGISTRATION
NO. : 0105520000432 [Former : 43/2520]
TAX
ID NO. : 3101085310
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. ADISAK THAVEEYONCHAI, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 40
LINES
OF BUSINESS : TRACTOR’S EQUIPMENT
& SPARE PARTS
IMPORTER AND
DISTRIBUTOR
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 12,
1977 as a
private limited company
under the name
style TRACK EQUIPMENT CO., LTD., by
Thai groups, in
order to distribute
tractor’s equipment and
spare parts to
local market. It
currently employs approximately 40
staff.
The
subject’s registered address
is 49-52 Rongmuang
Rd., Rongmuang, Pathumwan, Bangkok 10330,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Adisak Thaveeyonchai |
|
Thai |
62 |
|
Mrs. Arunee Thaveeyonchai |
|
Thai |
69 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Adisak Thaveeyonchai is
the Managing Director.
He is Thai
nationality with the
age of 62 years old.
Mrs. Arunee Thaveeyonchai is
the Deputy Managing
Director.
She is Thai
nationality with the
age of 69
years old.
Ms. Natsuda Thaveeyonchai is
the Assistant Managing
Director.
She is Thai
nationality.
Mr. Thanathip Thaveeyonchai is
the Assistant Managing
Director.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in distributing
various kinds of equipment
and spare parts for
tractors including engines & parts, oil seals,
filters, chains, gears,
motors, hydraulic pumps,
roller bearing, tyres,
bushes, clutches, batteries
and etc., depending on customer’s
requirement.
MAJOR BRANDS
“KOMATSU”, “CATERPILLA”, “DAEWOO”,
“TINGKEN”, “KOBELCO”,
“MITSUBISHI”, “CONMEE”, “SUMITOMO”,
“CUMMINS ENGINE”, “HI-TRACK”,
“HIGH GASKET”, “SUDO”,
“WORLD GASKET”, “KUT”,
“ITM”, “USCO”, “BCA”,
“FLEETGUARD”, “NATIONAL”, “FP DIESEL”,
“WAGNER” and etc.
PURCHASE
70%
of its products
is purchased from
local suppliers &
agents, and the remaining 30%
is imported from
Taiwan, Indonesia, Japan,
Australia, Italy, Korea,
Canada, U.S.A., Germany,
Republic of China
and Malaysia.
MAJOR
SUPPLIER
Bangkok
Komatsu Sales Co.,
Ltd. : Thailand
SALES
[LOCAL]
100%
of the products
is sold locally
by wholesale to
sub-dealers and by
retail to end-users.
SUBSIDIARY/AFFILIATED COMPANY
Yonthavee Motor Co., Ltd.
Business Type : Distributor of
engine parts for
tractors
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 T/T.
BANKING
Bangkok
Bank Public Co., Ltd.
[Head Office : 333 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
Krung
Thai Bank Public
Co., Ltd.
[Head Office :
35 Sukhumvit Rd.,
Klongtoeynua, Watana, Bangkok
10110]
EMPLOYMENT
The
subject employs approximately
40 staff [office
and sales staff].
LOCATION DETAILS
The
premise is owned
for administrative office,
showroom and warehouse
in a 4
storey building of
4 row shop
houses at the
heading address. Premise
is located in
commercial area.
COMMENT
There
was a demand of
tractor’s spare parts in relation
with the growth
of industrial consumption. Sales
surge reflected the
steady growth of
the repair sector mostly from
services centers. Subject
still maintains its
good business.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht.
5,000,000 divided into
5,000 shares of
Bht. 1,000 each.
The
capital was increased
later as follows:
Bht. 15,000,000
on December 14,
1977
Bht. 25,000,000
on September 15,
1981
The
latest registered capital
was increased to
Bht. 25,000,000 divided into
25,000 shares of
Bht. 1,000 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [ as at
April 29, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Adisak Thaveeyonchai Nationality: Thai Address : 48-49-52 Rongmuang
Rd., Rongmuang,
Pathumwan, Bangkok |
6,750 |
27.00 |
|
Mrs. Arunee Thaveeyonchai Nationality: Thai Address : 48-49-52 Rongmuang
Rd., Rongmuang,
Pathumwan, Bangkok |
6,750 |
27.00 |
|
Mr. Thanathip Thaveeyonchai Nationality: Thai Address : 48-49-52 Rongmuang
Rd., Rongmuang,
Pathumwan, Bangkok |
2,300 |
9.20 |
|
Ms. Natsuda Thaveeyonchai Nationality: Thai Address : 48-49-52 Rongmuang
Rd., Rongmuang,
Pathumwan, Bangkok |
2,300 |
9.20 |
|
Mrs. Yupapath Jarumethee Nationality: Thai Address : 28/229 Moo
8, Bangmod, Jomthong,
Bangkok |
2,300 |
9.20 |
|
Ms. Thiphaya Thaveeyonchai Nationality: Thai Address : 26 Rongmuang
Rd., Rongmuang,
Pathumwan, Bangkok 10330 |
2,300 |
9.20 |
|
Mr. Charnchai Jarumethee Nationality: Thai Address : 28/229 Moo
8, Bangmod, Jomthong,
Bangkok |
2,300 |
9.20 |
Total Shareholders : 7
Share Structure [as
at April 29,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
25,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
25,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Panida Pathumarat No. 2126
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
and 2010 were:
ASSETS
|
Current
Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents
|
531,863.36 |
1,052,653.52 |
966,134.71 |
|
Trade Accounts and
Other Receivable |
50,445,571.89 |
44,439,218.95 |
43,570,875.07 |
|
Inventories |
227,885,223.16 |
206,105,068.29 |
186,040,191.30 |
|
Other Current Assets
|
1,073,631.75 |
902,359.63 |
591,742.92 |
|
Total Current Assets
|
279,936,290.16 |
252,499,300.39 |
231,168,944.00 |
|
|
|
|
|
|
Fixed Assets |
7,156,070.59 |
8,546,261.96 |
7,797,834.48 |
|
Total Assets |
287,092,360.75 |
261,045,562.35 |
238,966,778.48 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft |
42,961,482.42 |
40,885,810.62 |
46,363,506.95 |
|
Trade Accounts and
Other Payable |
183,259,873.56 |
163,220,629.08 |
136,477,487.86 |
|
Accrued Expenses |
742,781.40 |
538,718.67 |
1,656,718.08 |
|
Total Current Liabilities |
226,967,137.38 |
204,645,158.37 |
184,497,712.89 |
|
Employee Benefits Obligation |
3,780,958.95 |
3,430,279.85 |
- |
|
Total Liabilities |
230,748,096.33 |
208,075,438.22 |
184,497,712.89 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 25,000 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 |
31,344,264.42 |
27,970,124.13 |
29,469,065.59 |
|
Total Shareholders' Equity |
56,344,264.42 |
52,970,124.13 |
54,469,065.59 |
|
Total Liabilities &
Shareholders' Equity |
287,092,360.75 |
261,045,562.35 |
238,966,778.48 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
217,122,100.29 |
144,451,189.32 |
175,309,673.04 |
|
Other Income |
1,973,255.61 |
1,136,139.93 |
3,008,203.33 |
|
Total Revenues |
219,095,355.90 |
145,587,329.25 |
178,317,876.37 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
192,444,964.33 |
121,000,364.61 |
154,597,205.45 |
|
Selling Expenses |
6,068,263.43 |
7,698,581.42 |
7,478,895.75 |
|
Administrative Expenses |
13,916,471.39 |
13,331,938.58 |
11,507,967.37 |
|
Total Expenses |
212,429,699.15 |
142,030,884.61 |
173,584,068.57 |
|
Profit / [Loss] Before
Financial Cost & Income Tax |
6,665,656.75 |
3,556,444.64 |
4,733,807.80 |
|
Financial Cost |
[1,611,942.14] |
[993,845.62] |
[1,093,460.14] |
|
Profit / [Loss] Before Income Tax |
5,053,714.61 |
2,562,599.02 |
3,640,347.66 |
|
Income Tax |
[1,340,781.40] |
[1,108,718.67] |
[1,113,657.07] |
|
Net Profit / [Loss] |
3,712,933.21 |
1,453,880.35 |
2,526,690.59 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.23 |
1.23 |
1.25 |
|
QUICK RATIO |
TIMES |
0.22 |
0.22 |
0.24 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
30.34 |
16.90 |
22.48 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.76 |
0.55 |
0.73 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
432.22 |
621.72 |
439.24 |
|
INVENTORY TURNOVER |
TIMES |
0.84 |
0.59 |
0.83 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
84.80 |
112.29 |
90.72 |
|
RECEIVABLES TURNOVER |
TIMES |
4.30 |
3.25 |
4.02 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
347.58 |
492.36 |
322.22 |
|
CASH CONVERSION CYCLE |
DAYS |
169.44 |
241.65 |
207.73 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
88.63 |
83.77 |
88.19 |
|
SELLING & ADMINISTRATION |
% |
9.20 |
14.56 |
10.83 |
|
INTEREST |
% |
0.74 |
0.69 |
0.62 |
|
GROSS PROFIT MARGIN |
% |
12.27 |
17.02 |
13.53 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.07 |
2.46 |
2.70 |
|
NET PROFIT MARGIN |
% |
1.71 |
1.01 |
1.44 |
|
RETURN ON EQUITY |
% |
6.59 |
2.74 |
4.64 |
|
RETURN ON ASSET |
% |
1.29 |
0.56 |
1.06 |
|
EARNING PER SHARE |
BAHT |
148.52 |
58.16 |
101.07 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.80 |
0.80 |
0.77 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.10 |
3.93 |
3.39 |
|
TIME INTEREST EARNED |
TIMES |
4.14 |
3.58 |
4.33 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
50.31 |
(17.60) |
|
|
OPERATING PROFIT |
% |
87.42 |
(24.87) |
|
|
NET PROFIT |
% |
155.38 |
(42.46) |
|
|
FIXED ASSETS |
% |
(16.27) |
9.60 |
|
|
TOTAL ASSETS |
% |
9.98 |
9.24 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 50.31%. Turnover has increased from THB
144,451,189.32 in 2011 to THB 217,122,100.29 in 2012. While net profit has
increased from THB 1,453,880.35 in 2011 to THB 3,712,933.21 in 2012. And total
assets has increased from THB 261,045,562.35 in 2011 to THB 287,092,360.75 in
2012.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
12.27 |
Deteriorated |
Industrial
Average |
24.83 |
|
Net Profit Margin |
1.71 |
Satisfactory |
Industrial
Average |
1.95 |
|
Return on Assets |
1.29 |
Deteriorated |
Industrial
Average |
3.68 |
|
Return on Equity |
6.59 |
Acceptable |
Industrial
Average |
10.11 |
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 12.27%. When compared with
the industry average, the ratio of the company was lower. This indicated that
company may have problems with control over its costs.
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 1.71%.
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 1.29%.
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 6.59%.
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 |
1.23 |
Satisfactory |
Industrial
Average |
1.57 |
|
Quick Ratio |
0.22 |
|
|
|
|
Cash Conversion Cycle |
169.44 |
|
|
|
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 1.23 times in 2012, same
figure as 1.23
in 2011, 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 0.22 times in 2012,
same figure as 0.22 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 170 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.80 |
Acceptable |
Industrial
Average |
0.63 |
|
Debt to Equity Ratio |
4.10 |
Risky |
Industrial
Average |
1.71 |
|
Times Interest Earned |
4.14 |
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 4.14 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 0.8 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
30.34 |
Impressive |
Industrial
Average |
1.57 |
|
Total Assets Turnover |
0.76 |
Deteriorated |
Industrial
Average |
1.90 |
|
Inventory Conversion Period |
432.22 |
|
|
|
|
Inventory Turnover |
0.84 |
Deteriorated |
Industrial
Average |
3.89 |
|
Receivables Conversion Period |
84.80 |
|
|
|
|
Receivables Turnover |
4.30 |
Impressive |
Industrial
Average |
3.19 |
|
Payables Conversion Period |
347.58 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.30 and 3.25 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 has decreased from 622 days at the
end of 2011 to 432 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 0.59 times in year 2011 to 0.84 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.76 times and 0.55
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.65.66 |
|
|
1 |
Rs.102.19 |
|
Euro |
1 |
Rs.87.74 |
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.