MIRA
INFORM REPORT
|
Report Date : |
19.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
PACIFIC LUXURY [THAILAND] LIMITED |
|
|
|
|
Registered Office : |
Unit 701, 7th Floor, Gemopolis Industrial Estate, 64/46 Soi Sukhapiban 2 [Soi 31], Dokmai, Praves, Bangkok 10250 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
11.06.2010 |
|
|
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Com. Reg. No.: |
0105553070308 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and
exporting various designs
of jewelry products
such as rings,
earrings, bracelet, necklace,
pendant |
|
|
|
|
No. of Employees : |
30 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow |
|
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
PACIFIC LUXURY
[THAILAND] LIMITED
SUMMARY
BUSINESS
ADDRESS : UNIT 701, 7th FLOOR, GEMOPOLIS INDUSTRIAL ESTATE,
64/46 SOI
SUKHAPIBAN 2 [SOI
31],
DOKMAI, PRAVES,
BANGKOK 10250
TELEPHONE : [66] 2727-0640-1
FAX :
[66] 2727-0642
E-MAIL
ADDRESS : nilesh@pacificluxury.cn
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2010
REGISTRATION
NO. : 0105553070308
TAX
ID NO. : 3033960082
CAPITAL REGISTERED : BHT. 8,000,000
CAPITAL PAID-UP : BHT.
8,000,000
SHAREHOLDER’S PROPORTION : THAI :
52.00%
INDIAN
: 48.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
KUNAL HARISH MEHTA,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 30
LINES
OF BUSINESS : JEWELRY PRODUCTS
MANUFACTURER, IMPORTER
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 June 11,
2010 as a
private limited company
under the registered
name PACIFIC LUXURY
[THAILAND] LIMITED by
Indian groups, with the
business objective to manufacture various
kinds of jewelry
products for exports.
In
December 2013, the
subject becomes a
joint venture between
Thai and Indian
groups. It currently employs
approximately 30 staff.
The
subject’s registered address
is Unit 701, 7th
Flr., Gemopolis Industrial
Estate, 64/46 Soi
Sukhapiban 2 [Soi 31],
Dokmai, Praves, Bangkok
10250, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kunal Harish Mehta |
|
Indian |
32 |
|
Mr. Umesh Premjibhai Barod |
|
Indian |
45 |
|
Ms. Siriporn Poonpuang |
|
Thai |
31 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Kunal Harish Mehta is
the Managing Director.
He is Indian
nationality with the
age of 32
years old.
Mr. Nilesh Sagye
is the General
Manager.
He is Indian
nationality.
Ms. Anita Abrol is
the Chief Operation
Officer.
She is Indian
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
and exporting various designs
of jewelry products
such as rings,
earrings, bracelet, necklace,
pendant and etc.
PURCHASE
Most
of diamonds and
gemstones for production
are imported from
India, Pakistan, Hong
Kong and Brazil,
the remaining is
purchased from local
suppliers.
EXPORT
100% of the
products is exported
to India, Hong
Kong, Japan and
European countries.
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
T/T.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
The
Siam Commercial Bank
Public Co., Ltd.
EMPLOYMENT
The
subject currently employs
approximately 30 staff.
LOCATION DETAILS
The premise
is rented for
administrative office, factory
& warehouse at the heading
address. Premise is located
in jewelry industrial
area.
Branches:
- 11th Floor,
Room No. E1, Surawong
Watthanakarn Building, 322/16
Surawong Road,
Sipraya, Bangrak, Bangkok
10500.
-
Surawong Watthanakarn Building,
322/20-21 Surawong Road,
Sipraya, Bangrak,
Bangkok 10500.
COMMENT
Subject
is a manufacturer
and exporter of
jewelry products. The
products are produced with
diamond, gemstone, semi-precious
stone, 18 K gold and
platinum. The subject
reported its negative
outcome at the
end of year 2012. However,
growth is expected
for the year 2013
but at slow pace.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 4,000,000
divided into 40,000
shares of Bht. 100
each with fully
paid.
The
capital was increased
later as follows:
Bht.
6,000,000 on May
28, 2013
Bht.
8,000,000 on December
13, 2013
The
latest registered capital
was increased to
Bht. 8,000,000 divided
into 80,000 shares
of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
December 11, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Songchai Chuaysathit Nationality: Thai Address : 92/438
Moo 2, Klongkum, Buengkum, Bangkok |
41,600 |
52.00 |
|
Mr. Kunal Harish Mehta Nationality: Indian Address : 64/46
Soi Sukhapibal 2
[Soi 31], Dokmai,
Praves, Bangkok |
38,000 |
47.50 |
|
Mr. Umesh Premjibhai Barod Nationality: Indian Address : 79
Chalermprakiat R.9 Soi
8, Nongbon,
Praves, Bangkok |
400 |
0.50 |
Total Shareholders : 3
Share Structure [as
at December 11,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
41,600 |
52.00 |
|
Foreign – Indian |
2 |
38,400 |
48.00 |
|
Total |
3 |
80,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Manus Wangthamnoon No.
3134
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
274,899.71 |
190,127.93 |
866,193.78 |
|
Trade Accounts & Other Receivable |
45,463,111.15 |
46,938,426.17 |
4,102,582.17 |
|
Inventories |
39,477,600.62 |
6,395,478.21 |
1,339,128.06 |
|
Other Current Assets
|
906,741.05 |
237,337.50 |
243,018.77 |
|
|
|
|
|
|
Total Current Assets
|
86,122,352.53 |
53,761,369.81 |
6,550,922.78 |
|
|
|
|
|
|
Fixed Assets |
9,332,058.63 |
10,065,279.81 |
10,550,984.48 |
|
Other Non-current Assets |
108,317.00 |
47,200.00 |
46,900.00 |
|
Total Assets |
95,562,728.16 |
63,873,849.62 |
17,148,807.26 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts &
Other Payable |
95,000,372.49 |
61,853,990.98 |
- |
|
Current Portion of Long-term
Liabilities -
Installment |
- |
1,166,769.28 |
2,445,339.87 |
|
Other Current Liabilities |
1,292,947.10 |
137,285.96 |
33,527.89 |
|
|
|
|
|
|
Total Current Liabilities |
96,293,319.59 |
63,158,046.22 |
2,478,867.76 |
|
Long-term Liabilities -
Installment |
- |
- |
1,166,769.28 |
|
Long-term Loan from
Related Person |
- |
- |
10,274,785.19 |
|
Total Liabilities |
96,293,319.59 |
63,158,046.22 |
13,920,422.23 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 40,000 shares |
4,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
|
|
|
|
|
Capital Paid |
4,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning - Unappropriated |
[4,730,591.43] |
[3,284,196.60] |
[771,614.97] |
|
Total Shareholders' Equity |
[730,591.43] |
715,803.40 |
3,228,385.03 |
|
Total Liabilities &
Shareholders' Equity |
95,562,728.16 |
63,873,849.62 |
17,148,807.26 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2012 |
2011 |
June 11,
2010 – Dec. 31,
2010 |
|
|
|
|
|
|
Sales |
72,587,713.98 |
132,929,359.91 |
5,164,240.71 |
|
Other Income |
1,476,428.91 |
471,565.83 |
362,692.93 |
|
Total Revenues |
74,064,142.89 |
133,400,925.74 |
5,526,933.64 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
72,307,677.48 |
132,851,421.78 |
5,176,543.56 |
|
Selling Expenses |
203,305.61 |
327,001.31 |
- |
|
Administrative Expenses |
2,831,624.13 |
2,431,898.67 |
976,090.45 |
|
Total Expenses |
75,342,607.22 |
135,610,321.76 |
6,152,634.01 |
|
|
|
|
|
|
Profit/Loss] before Financial Cost |
[1,278,464.33] |
[2,209,396.02] |
[625,700.37] |
|
Financial Cost |
[167,930.50] |
[303,185.61] |
[145,914.60] |
|
Net Profit / [Loss] |
[1,446,394.83] |
[2,512,581.63] |
[771,614.97] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.89 |
0.85 |
2.64 |
|
QUICK RATIO |
TIMES |
0.47 |
0.75 |
2.00 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.78 |
13.21 |
0.49 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.76 |
2.08 |
0.30 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
199.28 |
17.57 |
94.42 |
|
INVENTORY TURNOVER |
TIMES |
1.83 |
20.77 |
3.87 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
228.61 |
128.88 |
289.96 |
|
RECEIVABLES TURNOVER |
TIMES |
1.60 |
2.83 |
1.26 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
479.55 |
169.94 |
- |
|
CASH CONVERSION CYCLE |
DAYS |
(51.67) |
(23.48) |
384.39 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
99.61 |
99.94 |
100.24 |
|
SELLING & ADMINISTRATION |
% |
4.18 |
2.08 |
18.90 |
|
INTEREST |
% |
0.23 |
0.23 |
2.83 |
|
GROSS PROFIT MARGIN |
% |
2.42 |
0.41 |
6.78 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(1.76) |
(1.66) |
(12.12) |
|
NET PROFIT MARGIN |
% |
(1.99) |
(1.89) |
(14.94) |
|
RETURN ON EQUITY |
% |
- |
(351.02) |
(23.90) |
|
RETURN ON ASSET |
% |
(1.51) |
(3.93) |
(4.50) |
|
EARNING PER SHARE |
BAHT |
(36.16) |
(62.81) |
(19.29) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
1.01 |
0.99 |
0.81 |
|
DEBT TO EQUITY RATIO |
TIMES |
(131.80) |
88.23 |
4.31 |
|
TIME INTEREST EARNED |
TIMES |
(7.61) |
(7.29) |
(4.29) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(45.39) |
2,474.03 |
|
|
OPERATING PROFIT |
% |
(42.14) |
253.11 |
|
|
NET PROFIT |
% |
42.43 |
(225.63) |
|
|
FIXED ASSETS |
% |
(7.28) |
(4.60) |
|
|
TOTAL ASSETS |
% |
49.61 |
272.47 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -45.39%. Turnover has decreased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
2.42 |
Deteriorated |
Industrial
Average |
21.85 |
|
Net Profit Margin |
(1.99) |
Deteriorated |
Industrial
Average |
1.70 |
|
Return on Assets |
(1.51) |
Deteriorated |
Industrial
Average |
1.73 |
|
Return on Equity |
- |
|
Industrial
Average |
3.85 |
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 2.42%. 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 -1.99%.
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 -1.51%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
0.89 |
Risky |
Industrial
Average |
1.51 |
|
Quick Ratio |
0.47 |
|
|
|
|
Cash Conversion Cycle |
(51.67) |
|
|
|
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 0.89 times in 2012, increased from 0.85 times, then the company may have
problems meeting its short-term obligations. 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 0.47 times in 2012,
decreased from 0.75 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 -52 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
1.01 |
Risky |
Industrial
Average |
0.77 |
|
Debt to Equity Ratio |
(131.80) |
Risky |
Industrial
Average |
3.27 |
|
Times Interest Earned |
(7.61) |
Risky |
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 higher the percentage means that the company is using less equity
and has stronger leverage position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is -7.62 lower than 1, so the company is not generating
enough cash from EBIT to meet its
interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 1.01 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 |
7.78 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.76 |
Acceptable |
Industrial
Average |
1.02 |
|
Inventory Conversion Period |
199.28 |
|
|
|
|
Inventory Turnover |
1.83 |
Satisfactory |
Industrial
Average |
2.22 |
|
Receivables Conversion Period |
228.61 |
|
|
|
|
Receivables Turnover |
1.60 |
Satisfactory |
Industrial
Average |
1.85 |
|
Payables Conversion Period |
479.55 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.60 and
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 18 days at the
end of 2011 to 199 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 20.77 times in year 2011 to 1.83
times in year 2012.
The company's Total Asset Turnover is calculated as 0.76 times and 2.08
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
DIAMOND INDUSTRY – INDIA
-
From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was possible only due to
combination of the manufacturing skills of the Indian workforce and the
untiring and unflagging efforts of the Indian diamantaires, supported by
progressive Government policies.
-
The area of study of family owned diamond businesses derives its importance
from the huge conglomerate of family run organizations which operate in the
diamond industry since many generations.
-
Some of the basic traits of family run business enterprises include
spirit of entrepreneurship, mutual trust lowers transaction costs, small,
nimble and quick to react, information as a source of advantage and
philanthropy.
-
Family owned diamond businesses need to improve on many fronts including
higher standard of corporate governance, long-term performance – focused
strategies, modern management and technology.
-
Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import – export,
inter-company transactions, financially assisted by banks. In the process, several
public sector banks lost several hundred million rupees. They mostly diverted
borrowed money for diamond business into real estate and capital markets.
-
Excerpts from Times of India dated 30th October 2010 is as
under –
-
Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
-
The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market
liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.92 |
|
|
1 |
Rs.100.83 |
|
Euro |
1 |
Rs.85.27 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.