MIRA
INFORM REPORT
|
Report Date : |
07.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
ABSOLUTE DENIM
CO., LTD. |
|
|
|
|
Registered Office : |
99 SOI
Sukhumvit 6, Sukhumvit
Road, Klongtoey,
Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
18.02.2005 |
|
|
|
|
Com. Reg. No.: |
0105548025472 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Engaged
in complete range of
textile business comprising
spinning, dyeing, weaving
and finishing of
yarns and denim
fabric. |
|
|
|
|
No. of Employees : |
400 |
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 : |
Slow but correct |
|
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
ABSOLUTE
DENIM CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 99
SOI SUKHUMVIT 6,
SUKHUMVIT ROAD,
KLONGTOEY, BANGKOK
10110
TELEPHONE : [66] 2255-4999,
2622-9119
FAX :
[66] 2207-9888,
2207-9444
E-MAIL
ADDRESS : info@absolutedenim.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2005
REGISTRATION
NO. : 0105548025472
TAX
ID NO. : 3031703315
CAPITAL REGISTERED : BHT. 1,350,000,000
CAPITAL PAID-UP : BHT.
1,350,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PORNPHROM PHROMVANICH, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 400
LINES
OF BUSINESS : TEXTILES
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
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 18,
2005 as a
private limited company
under the originally
registered name “G. Denim Co., Ltd.” by
Thai groups. On
April 12, 2005,
its registered name
was changed to “International Denim
Co., Ltd.”, and
finally changed to
ABSOLUTE DENIM CO., LTD.,
on September 23,
2005. Its objective
is to be
engaged in textile
business. It currently
employs approximately 400
staff.
The
subject’s registered address
is 99 Soi
Sukhumvit 6, Sukhumvit
Rd., Klongtoey, Bangkok
10110, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms. Chidaporn Phromvanich [Former : Ms. Mayura Narula] |
|
Thai |
32 |
|
Mr. Pornphrom Phromvanich |
|
Thai |
63 |
|
Mr. Vichai Phromvanich |
|
Thai |
27 |
|
Ms. Amritgor Narula |
|
Thai |
36 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Pornphrom Phromvanich is
the Managing Director.
He is Thai
nationality with the
age of 63
years old.
Ms. Chidaporn Phromvanich is
the General Manager.
She is Thai
nationality with the
age of 32
years old.
Mr. Vichai Phromvanich is
the Sales & Export Manager.
He is Thai
nationality with the
age of 27
years old.
BUSINESS OPERATIONS
The subject is
engaged in complete
range of textile business
comprising spinning, dyeing,
weaving and finishing
of yarns and
denim fabric.
PRODUCTION CAPACITY
2 million meters
per month
PURCHASE
Most
of cotton yarn
and other raw materials
are purchased from
local suppliers, the
remaining is imported
from India, Japan, Republic
of China, Australia,
Italy, Switzerland and Germany.
SALES
80% of the products
is exported to Africa,
U.S.A., Republic of China,
Bangladesh, India, Vietnam,
Cambodia, Germany, Italy,
Spain, United Kingdom,
and the remaining
20% is sold
locally.
SUBSIDIARY AND AFFILIATED
COMPANY
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
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 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
L/C at sight
or T/T.
Exports are against
L/C or T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
400 staff.
LOCATION
DETAILS
The
premise is owned
for administrative office
at the heading
address. Premise is located
in commercial/residential area.
Factory
and warehouse are
located on approximately
90,000 square meters
building, at 99/9
Moo 8, T. Bangkachao, A. Muang,
Samutsakorn 74000.
Tel.
[66] 34
869-181-2, Fax. [66]
34 869-200.
COMMENT
The subject manufactures, distributes
and exports of
yarns and denim
fabric. The products
have been served to garment
industry of both local and overseas. The subject’s sales in
2012 was considered
excellent with strong
sales both international
and domestic markets.
The subject’s business
in 2013 is
promising from demand
in overseas markets.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 500,000,000
divided into 500,000
shares of Bht. 1,000 each with
fully paid.
The
capital was increased
later as follows:
Bht. 800,000,000 on
May 10, 2006
Bht. 1,000,000,000
on January 15,
2007
Bht. 1,350,000,000
on February 4, 2009
The
latest registered capital
was increased to
Bht. 1,350 million, divided into
1,350,000 shares of
Bht. 1,000 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE
[as
at April 30,
2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Vichai Phromvanich Nationality: Thai Address : 20/14
Sukhumvit 20 Rd.,
Klongtoey, Bangkok |
675,000 |
50.00 |
|
Mr. Pornphrom Phromvanich Nationality: Thai Address : 20/14
Sukhumvit 20 Rd.,
Klongtoey, Bangkok |
625,000 |
46.30 |
|
Ms. Amritgor Narula Nationality: Thai Address : 20/14
Sukhumvit 20 Rd.,
Klongtoey, Bangkok |
25,000 |
1.85 |
|
Ms. Chidaporn Phromvanich Nationality: Thai Address : 20/14
Sukhumvit 20 Rd.,
Klongtoey, Bangkok |
25,000 |
1.85 |
Total Shareholders : 4
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
1,350,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
4 |
1,350,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Adisorn Leklatha No.
4075
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalent |
2,817,593.57 |
6,026,221.48 |
483,457.57 |
|
Trade Accounts and
other Receivable |
240,137,739.10 |
182,341,010.14 |
280,975,418.03 |
|
Inventories |
573,341,372.31 |
508,376,258.29 |
396,584,961.00 |
|
Other Current Assets |
7,596,571.95 |
5,691,456.17 |
15,889,894.60 |
|
|
|
|
|
|
Total Current Assets
|
823,893,276.93 |
702,434,946.08 |
693,933,731.20 |
|
|
|
|
|
|
Fixed Assets |
2,462,641,820.11 |
2,605,624,549.94 |
2,704,765,269.89 |
|
Other Non-current Assets
|
6,626.20 |
6,626.20 |
6,626.20 |
|
Total Assets |
3,286,541,723.24 |
3,308,066,122.22 |
3,398,705,627.29 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Payable from Financial Institution |
17,288,744.50 |
9,845,081.29 |
116,445,495.36 |
|
Short-term Loan from Financial Institution |
222,047,304.69 |
156,299,972.12 |
116,552,531.23 |
|
Trade Accounts &
Other Payable |
208,550,878.45 |
149,073,740.93 |
128,864,930.09 |
|
Trust Receipts Payable |
579,189,380.32 |
689,583,853.15 |
525,731,742.35 |
|
Current Portion of
Long-term Loans |
264,300,000.00 |
119,300,000.00 |
220,800,000.00 |
|
Current Portion of Hire-purchase Payable |
165,016.09 |
1,480,672.69 |
1,662,988.79 |
|
Other Current Liabilities |
1,007,602.17 |
14,136,264.16 |
7,899,928.30 |
|
|
|
|
|
|
Total Current Liabilities |
1,292,548,926.22 |
1,139,719,584.34 |
1,117,957,616.12 |
|
Long-term Loan, net of Current Portion |
1,023,875,000.00 |
1,289,800,000.00 |
1,278,200,000.00 |
|
Long-term Loan from
Person or Related Company |
547,747,672.30 |
494,592,059.30 |
451,614,034.88 |
|
Hire-purchase Payable, net of Current Portion |
11,830.88 |
239,209.28 |
1,727,669.88 |
|
Other Non-current Liabilities |
32,972,374.79 |
33,081,374.79 |
32,770,374.79 |
|
Total Liabilities |
2,897,155,804.19 |
2,957,432,227.71 |
2,882,269,695.67 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share capital 1,350,000 shares
|
1,350,000,000.00 |
1,350,000,000.00 |
1,350,000,000.00 |
|
|
|
|
|
|
Capital Paid |
1,350,000,000.00 |
1,350,000,000.00 |
1,350,000,000.00 |
|
Retained Earning-
Unappropriated |
[960,614,080.95] |
[999,366,105.49] |
[833,564,068.38] |
|
Total Shareholders' Equity |
389,385,919.05 |
350,633,894.51 |
516,435,931.62 |
|
Total Liabilities &
Shareholders' Equity |
3,286,541,723.24 |
3,308,066,122.22 |
3,398,705,627.29 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
1,548,840,043.29 |
1,533,447,398.16 |
1,066,468,272.82 |
|
Gain on Exchange Rate |
31,557,077.27 |
- |
- |
|
Other Income |
11,607,463.35 |
172,859.64 |
4,008,602.49 |
|
Total Revenues |
1,592,004,583.91 |
1,533,620,257.80 |
1,070,476,875.31 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,323,511,067.83 |
1,453,145,987.37 |
1,088,137,263.96 |
|
Selling Expenses |
33,118,720.63 |
31,038,749.58 |
28,525,043.97 |
|
Administrative Expenses |
54,710,924.58 |
48,695,967.11 |
59,251,682.09 |
|
Other Expenses |
- |
16,482,692.32 |
7,981,378.45 |
|
Total Expenses |
1,411,340,713.04 |
1,549,363,396.38 |
1,183,895,368.47 |
|
|
|
|
|
|
Loss
before Financial Cost |
180,663,870.87 |
[15,743,138.58] |
[113,418,493.16] |
|
Financial Cost |
[141,911,846.33] |
[150,058,898.53] |
[120,807,358.62] |
|
|
|
|
|
|
Net Profit / [Loss] |
38,752,024.54 |
[165,802,037.11] |
[234,225,851.78] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.64 |
0.62 |
0.62 |
|
QUICK RATIO |
TIMES |
0.19 |
0.17 |
0.25 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.63 |
0.59 |
0.39 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.47 |
0.46 |
0.31 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
158.12 |
127.69 |
133.03 |
|
INVENTORY TURNOVER |
TIMES |
2.31 |
2.86 |
2.74 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
56.59 |
43.40 |
96.16 |
|
RECEIVABLES TURNOVER |
TIMES |
6.45 |
8.41 |
3.80 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
57.51 |
37.44 |
43.23 |
|
CASH CONVERSION CYCLE |
DAYS |
157.19 |
133.65 |
185.97 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
85.45 |
94.76 |
102.03 |
|
SELLING & ADMINISTRATION |
% |
5.67 |
5.20 |
8.23 |
|
INTEREST |
% |
9.16 |
9.79 |
11.33 |
|
GROSS PROFIT MARGIN |
% |
17.34 |
5.25 |
(1.66) |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
11.66 |
(1.03) |
(10.63) |
|
NET PROFIT MARGIN |
% |
2.50 |
(10.81) |
(21.96) |
|
RETURN ON EQUITY |
% |
9.95 |
(47.29) |
(45.35) |
|
RETURN ON ASSET |
% |
1.18 |
(5.01) |
(6.89) |
|
EARNING PER SHARE |
BAHT |
28.71 |
(122.82) |
(173.50) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.88 |
0.89 |
0.85 |
|
DEBT TO EQUITY RATIO |
TIMES |
7.44 |
8.43 |
5.58 |
|
TIME INTEREST EARNED |
TIMES |
1.27 |
(0.10) |
(0.94) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
1.00 |
43.79 |
|
|
OPERATING PROFIT |
% |
(1,247.57) |
(86.12) |
|
|
NET PROFIT |
% |
123.37 |
29.21 |
|
|
FIXED ASSETS |
% |
(5.49) |
(3.67) |
|
|
TOTAL ASSETS |
% |
(0.65) |
(2.67) |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is 1%. Turnover has increased from THB
1,533,447,398.16 in 2011 to THB 1,548,840,043.29 in 2012. While net profit has increased
from THB -165,802,037.11 in 2011 to THB 38,752,024.54 in 2012. And total assets
has decreased from THB 3,308,066,122.22 in 2011 to THB 3,286,541,723.24 in
2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
17.34 |
Impressive |
Industrial
Average |
14.74 |
|
Net Profit Margin |
2.50 |
Impressive |
Industrial
Average |
0.52 |
|
Return on Assets |
1.18 |
Impressive |
Industrial
Average |
0.64 |
|
Return on Equity |
9.95 |
Impressive |
Industrial
Average |
1.35 |
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 17.34%. 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 2.5%, 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
1.18%, 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 9.95%, 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 |
0.64 |
Risky |
Industrial
Average |
1.15 |
|
Quick Ratio |
0.19 |
|
|
|
|
Cash Conversion Cycle |
157.19 |
|
|
|
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 0.64 times in 2012, increased from 0.62 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 0.19 times in 2012,
increased from 0.17 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 158 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.88 |
Acceptable |
Industrial
Average |
0.58 |
|
Debt to Equity Ratio |
7.44 |
Risky |
Industrial
Average |
1.40 |
|
Times Interest Earned |
1.27 |
Satisfactory |
Industrial
Average |
1.37 |
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 1.28 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 0.88 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 Uptrend
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
0.63 |
Satisfactory |
Industrial
Average |
0.63 |
|
Total Assets Turnover |
0.47 |
Deteriorated |
Industrial
Average |
1.13 |
|
Inventory Conversion Period |
158.12 |
|
|
|
|
Inventory Turnover |
2.31 |
Acceptable |
Industrial
Average |
3.20 |
|
Receivables Conversion Period |
56.59 |
|
|
|
|
Receivables Turnover |
6.45 |
Impressive |
Industrial
Average |
2.94 |
|
Payables Conversion Period |
57.51 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.45 and 8.41 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 128 days at the
end of 2011 to 158 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 2.86 times in year 2011 to 2.31 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.47 times and 0.46
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.61.66 |
|
|
1 |
Rs.100.64 |
|
Euro |
1 |
Rs.84.25 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.