MIRA
INFORM REPORT
|
Report Date : |
14.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
THAI
PROGRESS GARMENT CO.,
LTD. |
|
|
|
|
Registered Office : |
587 Moo 2, Bangpa-In Industrial Estate, Export Processing Zone, T. Klongjik, A. Bangpa-In, Ayudhaya 13160 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
04.05.1998 |
|
|
|
|
Com. Reg. No.: |
0145541000300 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
manufacturer of
wide range of
ladies underwear such as bras,
briefs, sports bra,
panty, swimwear |
|
|
|
|
No. of Employees : |
300 |
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 : |
Regular |
|
|
|
|
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 – September 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 PROGRESS GARMENT
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 587
MOO 2, BANGPA-IN INDUSTRIAL
ESTATE,
EXPORT PROCESSING
ZONE, T. KLONGJIK,
A. BANGPA-IN, AYUDHAYA
13160
THAILAND
TELEPHONE : [66] 35
221-815-7
FAX :
[66] 35
221-819
E-MAIL
ADDRESS : tpgm@ksc.th.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1998
REGISTRATION
NO. : 0145541000300
TAX ID NO. : 3121010927
CAPITAL REGISTERED : BHT. 30,000,000
CAPITAL PAID-UP : BHT.
30,000,000
SHAREHOLDER’S PROPORTION : THAI :
1%
FOREIGN : 99%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. YOSEP HAJAJ,
ISRAELI
MANAGING DIRECTOR
NO.
OF STAFF : 300
LINES
OF BUSINESS : LINGERIE
MANUFACTURER AND
EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on May 4, 1998
as a private
limited company under
the name style
THAI PROGRESS GARMENT
CO., LTD. by
Thai and foreign
groups, in order to manufacture lady underwear for
international markets. It currently employs
approximately 300 staff.
The subject’s registered address is 587 Moo 2, Bangpa-in
Industrial Estate, Export
Processing Zone, T. Klongjik, A.
Bangpa-in, Ayudhaya 13160, and this is
the subject’s current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sompop Tantasawat |
|
Thai |
36 |
|
Mr. Yosep Hajaj |
|
Israeli |
45 |
|
Mr. Michael Berl
Silo Lexor |
|
Israeli |
- |
|
Mr. Isac Dabaz |
|
Israeli |
56 |
|
Mr. Halm Navon |
|
Israeli |
55 |
|
Ms. Ma Thien
Lam |
[x] |
Myanmese |
39 |
AUTHORIZED PERSON
Any of the
above directors except
the director [x]
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Yosep Hajaj
is the Managing
Director.
He is Israeli
nationality with the
age of 45
years old.
Mr. Halm Navon
is the General
Manager.
He is Israeli
nationality with the
age of 55
years old.
Ms. Roong-aroon Chinhong is
the Human Resource
Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
wide range of
ladies underwear: bras,
briefs, sports bra,
panty, swimwear
The subject also
provides manufacturing service
for the international
brands, under customers’ requirement.
MAJOR BRANDS
“BRASSIERES”, “PANTIES”, “CAMISOLES”
and customers’ own brands
IMPORT
Most
of raw materials,
mainly fabric and
accessories are imported
from
United
States of America,
India, Indonesia, Republic
of China, Japan
and Israel,
and
the rest is
purchased from local
suppliers.
MAJOR
SUPPLIERS
Delta
Galil Industries Ltd.
: Israel
Delta
Galil U.S.A. Inc.
: United States
of America
EXPORT
100% of the
products is exported
to Japan, Hong Kong,
United States of
America and European
countries.
PARENT COMPANY
Delta Galil Holland
B.V.
Address : Switzerland
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
for the past
two years.
CREDIT
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
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
300 staff.
LOCATION
DETAILS
The
premise is owned
for administrative office,
factory and warehouse
at the heading
address. Premise is
located in industrial
area.
COMMENT
The
subject is a manufacturer and
exporter of lady underwear. In
2012 sales were
outstanding improved from
U.S.A and European
markets. Overseas’ economy improvement
during the past
10 months of
this year resulting
in an increase
of orders, associated
with a strengthening
business growth of its
customers.
Generally,
the subject would
end this year
with impressive outcome.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 10,000,000
divided into 100,000
shares of Bht.
100 each.
On
November 28, 2003,
the registered capital
was increased to
Bht. 30,000,000 divided into
300,000 shares of
Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at April
30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Delta Galil Holland
B.V. [Swiss Branch] Nationality: Dutch Address : Switzerland |
296,995 |
99.00 |
|
M.B.A. Co., Ltd. Nationality: Thai Address : 4th Floor,
Nailert Tower, 2/4
Wireless Rd., Lumpini, Pathumwan,
Bangkok |
3,000 |
1.00 |
|
Mr. Isac Dabaz Nationality: Israeli Address : 587
Moo 2, T. Klongjik,
A. Bangpa-in, Ayudhaya |
2 |
- |
|
Mr. Halm Navon Nationality: Israeli Address : 587
Moo 2, T. Klongjik,
A. Bangpa-in, Ayudhaya |
1 |
- |
|
Mr. Yosep Hajaj Nationality: Israeli Address : Israel |
1 |
- |
|
Mr. Michael Berl
Silo Lexor Nationality: Israeli Address : Israel |
1 |
- |
Total Shareholders : 6
Share Structure
[as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
3,000 |
1.00 |
|
Foreign |
5 |
297,000 |
99.00 |
|
Total |
6 |
300,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Sitthisak Thienthong
No. 6796
BALANCE SHEET [BAHT]
The latest financial figures published for December 31, 2012, 2011 & 2010 were:
ASSETS
|
Current
Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash in Hand
& at Bank
|
16,719,833.00 |
5,449,527.00 |
25,365,619.00 |
|
Trade Accounts Receivable - Parent & Related Company |
394,288,228.00 |
287,251,554.00 |
232,836,944.00 |
|
- Other Company |
- |
- |
1,716,004.00 |
|
Insurance Receivable |
- |
20,920,310.00 |
- |
|
Parent Company Receivable & Related Company |
53,100.00 |
227,599.00 |
13,596,044.00 |
|
Inventories |
44,232,659.00 |
85,355,548.00 |
49,683,636.00 |
|
Other Current Assets
|
2,055,674.00 |
16,390,745.00 |
5,467,778.00 |
|
Revenue Department Receivable |
1,200,000.00 |
- |
- |
|
Total Current
Assets |
458,549,494.00 |
415,595,283.00 |
328,666,025.00 |
|
|
|
|
|
|
Computer Programme |
51,713.00 |
350,418.00 |
397,272.00 |
|
Fixed Assets |
77,101,431.00 |
72,964,998.00 |
89,371,546.00 |
|
Total Assets
|
535,702,638.00 |
488,910,699.00 |
418,434,843.00 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft |
- |
9,161,895.00 |
- |
|
Trade Accounts Payable - Parent & Related Company |
235,597,806.00 |
234,159,656.00 |
190,199,334.00 |
|
- Other Company |
57,438,160.00 |
62,857,613.00 |
59,819,044.00 |
|
Current Portion of Hire-purchase Contract Liabilities |
297,704.00 |
362,591.00 |
341,758.00 |
|
Other Payable |
4,405,745.00 |
7,533,984.00 |
4,261,910.00 |
|
Accrued Income Tax |
- |
- |
1,846,747.00 |
|
Accrued Expenses |
867,262.00 |
1,118,695.00 |
425,999.00 |
|
Other Current Liabilities |
6,150,273.00 |
3,922,379.00 |
1,387,605.00 |
|
Total Current
Liabilities |
304,756,950.00 |
319,116,813.00 |
258,282,397.00 |
|
|
|
|
|
|
Long-term Loan from Parent Company |
170,864,362.00 |
166,928,347.00 |
127,437,045.00 |
|
Hire-purchase Contract Liabilities,
Net of
Current Portion |
- |
245,686.00 |
875,578.00 |
|
Total Liabilities |
475,621,312.00 |
486,290,846.00 |
386,595,020.00 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100 value
Authorized &
issued share capital 300,000
shares |
30,000,000.00 |
30,000,000.00 |
30,000,000.00 |
|
Capital Paid |
30,000,000.00 |
30,000,000.00 |
30,000,000.00 |
|
Retained Earning -
Unappropriated |
30,081,326.00 |
[27,380,147.00] |
1,839,823.00 |
|
Total Shareholders' Equity |
60,081,326.00 |
2,619,853.00 |
31,839,823.00 |
|
Total Liabilities
& Shareholders' Equity |
535,702,638.00 |
488,910,699.00 |
418,434,843.00 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
584,257,793.00 |
485,564,144.00 |
567,846,670.00 |
|
Loss from Goods Obsolescence [Reversal] |
4,514,843.00 |
2,348,114.00 |
2,521,986.00 |
|
Other Income |
14,821,258.00 |
- |
15,303,836.00 |
|
|
|
|
|
|
Total Revenue |
603,593,894.00 |
487,912,258.00 |
585,672,492.00 |
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
492,261,066.00 |
445,927,059.00 |
517,327,058.00 |
|
Selling and Administrative Expenses |
47,559,803.00 |
46,101,137.00 |
51,767,548.00 |
|
Other Expenses |
- |
18,035,979.00 |
- |
|
Total Expenses |
539,820,869.00 |
510,064,175.00 |
569,094,606.00 |
|
Profit / [Loss] before Financial Cost & Income Tax |
63,773,025.00 |
[22,151,917.00] |
16,577,886.00 |
|
Financial Cost |
[7,511,552.00] |
[5,868,053.00] |
[4,970,904.00] |
|
Profit/[Loss] before Income Tax |
56,261,473.00 |
[28,019,970.00] |
11,606,982.00 |
|
Income Tax |
- |
[1,200,000.00] |
[3,471,636.00] |
|
Net Profit / [Loss] |
56,261,473.00 |
[29,219,970.00] |
8,135,346.00 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.50 |
1.30 |
1.27 |
|
QUICK RATIO |
TIMES |
1.35 |
0.98 |
1.06 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.58 |
6.65 |
6.35 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.09 |
0.99 |
1.36 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
32.80 |
69.87 |
35.05 |
|
INVENTORY TURNOVER |
TIMES |
11.13 |
5.22 |
10.41 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
- |
- |
1.10 |
|
RECEIVABLES TURNOVER |
TIMES |
- |
- |
330.91 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
42.59 |
51.45 |
42.21 |
|
CASH CONVERSION CYCLE |
DAYS |
(9.79) |
18.41 |
(6.05) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
84.25 |
91.84 |
91.10 |
|
SELLING & ADMINISTRATION |
% |
8.14 |
9.49 |
9.12 |
|
INTEREST |
% |
1.29 |
1.21 |
0.88 |
|
GROSS PROFIT MARGIN |
% |
19.06 |
8.65 |
12.04 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
10.92 |
(4.56) |
2.92 |
|
NET PROFIT MARGIN |
% |
9.63 |
(6.02) |
1.43 |
|
RETURN ON EQUITY |
% |
93.64 |
(1,115.33) |
25.55 |
|
RETURN ON ASSET |
% |
10.50 |
(5.98) |
1.94 |
|
EARNING PER SHARE |
BAHT |
187.54 |
(97.40) |
27.12 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.89 |
0.99 |
0.92 |
|
DEBT TO EQUITY RATIO |
TIMES |
7.92 |
185.62 |
12.14 |
|
TIME INTEREST EARNED |
TIMES |
8.49 |
(3.78) |
3.33 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
20.33 |
(14.49) |
|
|
OPERATING PROFIT |
% |
(387.89) |
(233.62) |
|
|
NET PROFIT |
% |
292.54 |
(459.17) |
|
|
FIXED ASSETS |
% |
5.67 |
(18.36) |
|
|
TOTAL ASSETS |
% |
9.57 |
16.84 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 20.33%. Turnover has increased from THB
485,564,144.00 in 2011 to THB 584,257,793.00 in 2012. While net profit has
increased from THB -29,219,970.00 in 2011 to THB 56,261,473.00 in 2012. And
total assets has increased from THB 488,910,699.00 in 2011 to THB
535,702,638.00 in 2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
19.06 |
Impressive |
Industrial Average |
10.66 |
|
Net Profit Margin |
9.63 |
Impressive |
Industrial Average |
0.46 |
|
Return on Assets |
10.50 |
Impressive |
Industrial Average |
0.53 |
|
Return on Equity |
93.64 |
Impressive |
Industrial Average |
2.06 |
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 19.06%. 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 9.63%, 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
10.5%, 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 93.64%, 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 Downtrend
Return on Equity Downtrend
LIQUIDITY :
IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
1.50 |
Impressive |
Industrial Average |
1.03 |
|
Quick Ratio |
1.35 |
|
|
|
|
Cash Conversion Cycle |
(9.79) |
|
|
|
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 1.5 times in 2012, increased from 1.3 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 1.35 times in 2012,
increased from 0.98 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 -10 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.89 |
Acceptable |
Industrial Average |
0.84 |
|
Debt to Equity Ratio |
7.92 |
Risky |
Industrial Average |
5.13 |
|
Times Interest Earned |
8.49 |
Impressive |
Industrial Average |
- |
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 8.49 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 0.89 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
7.58 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.09 |
Satisfactory |
Industrial Average |
1.16 |
|
Inventory Conversion Period |
32.80 |
|
|
|
|
Inventory Turnover |
11.13 |
Impressive |
Industrial Average |
3.16 |
|
Receivables Conversion Period |
- |
|
|
|
|
Receivables Turnover |
- |
|
Industrial Average |
1.56 |
|
Payables Conversion Period |
42.59 |
|
|
|
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 70 days at the
end of 2011 to 33 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 5.22 times in year 2011 to 11.13
times in year 2012.
The company's Total Asset Turnover is calculated as 1.09 times and 0.99
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 Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.13 |
|
UK Pound |
1 |
Rs.101.53 |
|
Euro |
1 |
Rs.85.41 |
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.