MIRA
INFORM REPORT
|
Report Date : |
19.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
ROYAL ELECTRONIC FACTORY [THAILAND] COMPANY LIMITED. |
|
|
|
|
Registered Office : |
20/1-2
Moo 2, T. Klongna, A. Muang,
Chachoengsao 24000 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
13.12.1988 |
|
|
|
|
Com. Reg. No.: |
0105531097891 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged
in manufacturing, exporting
and distributing various
kinds of electronic
components |
|
|
|
|
No. of Employees : |
1,300 |
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 : |
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 and address
ROYAL ELECTRONIC
FACTORY [THAILAND] COMPANY LIMITED.
SUMMARY
BUSINESS
ADDRESS : 20/1-2 MOO
2, T. KLONGNA, A. MUANG,
CHACHOENGSAO 24000,
THAILAND
TELEPHONE : [66] 38
822-404, 38 981-192
FAX :
[66] 38
823-765, 38 981-190
E-MAIL
ADDRESS : export@royalohm.com
local@royalohm.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1988
REGISTRATION
NO. : 0105531097891
TAX
ID NO. : 3101579888
CAPITAL REGISTERED : BHT. 330,000,000
CAPITAL PAID-UP : BHT.
330,000,000
SHAREHOLDER’S PROPORTION : FOREIGN
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. HSIEH TSUNG-YU,
CHINESE
PRESIDENT
NO.
OF STAFF : 1,300
LINES
OF BUSINESS : ELECTRONIC COMPONENTS
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
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 December 13, 1988
as a private
limited company under the registered
name ROYAL ELECTRONIC FACTORY
[THAILAND] COMPANY LIMITED,
by Foreign investors, with the
business objective to
manufacture various kinds
of electronic components
with BOI promoted,
for domestic and
export markets. It currently employs
approximately 1,300 staff.
The
subject’s registered address
is 20/1-2 Moo
2, T. Klongna, A. Muang,
Chachoengsao 24000, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Hsieh Tsung-Yu |
|
Chinese |
67 |
|
Mr. Yang Kun Yao |
|
Chinese |
64 |
|
Mr. Wang Chien Kuo |
|
Chinese |
49 |
|
Mr. Chou Chin Yuan |
|
Chinese |
58 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Hsieh Tsung-Yu is
the President.
He is Chinese
nationality with the
age of 67
years old.
Mr. Yang Kun Yao
is the Vice
President and Operation
Manager.
He is Chinese
nationality with the
age of 64
years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing, exporting and
distributing various kinds
of electronic components,
such as Surface
Mount Device [SMD], Resistor
Network [SIL], Conventional Type,
Formed Type [Radial
bulk/Radial type], automotive
resistors, and industrial
resistors for automobiles,
motorcycles, home appliances,
office and communication
equipment, power supply,
changers & UPS, control instrumentation, control
circuit of VCR,
printed circuit board,
medical equipment and
lighting industry.
PRODUCTION CAPACITY
7.8
billions
pieces per month
BRAND NAME
“ROYALOHM”
PURCHASE
Raw
materials are purchased
from suppliers both
domestic and overseas,
in Republic of
China, Japan, Germany,
India and Australia.
SALES/SERVICES
70% of the
products is exported
to Republic of
China, India, Russia,
Germany,
United Kingdom, Spain, Portugal,
Turkey, Egypt, Sweden,
France, Norway, Indonesia,
Korea, Taiwan, Vietnam, Japan, Australia, New Zealand and
others with over 50 countries,
the remaining 30%
is sold locally.
MAJOR
CUSTOMERS
Samsung
Electronics Co., Ltd. : Thailand
Canon
Hi-Tech [Thailand] Co.,
Ltd. : Thailand
Toshiba
Group : Thailand
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
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.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
The
Siam Commercial Bank
Public Co., Ltd.
EMPLOYMENT
The
subject currently employs approximately 1,300
staff.
LOCATION
DETAILS
The
premise is owned
for administrative office
and factory on
16,000 sq.m. at the
heading address. Premise
is located in
provincial.
COMMENT
The
subject has more than
25 years experience
of resistor manufacturing
and distribution. Its
adaptability to changing
times leads to its
continuous growth. The
subject’s factory expansion
to wider product
lines including the
Surface Mount Technology, as
well as serving bigger
scope of global market.
FINANCIAL INFORMATION
The
capital was registered at
Bht. 20,250,000 divided
into 202,500 shares
of Bht. 100
each with fully
paid.
The
capital was increased
later as follows:
Bht. 30,000,000
on September
10, 1990
Bht. 40,000,000
on July
19, 1991
Bht. 100,000,000
on November
21, 1995
Bht. 130,000,000
on November
4, 1996
Bht. 330,000,000
on March
2, 2010
The
latest registered capital
was increased to
Bht. 330 million, divided into
3,300,000 shares of
Bht. 100 each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
June 7, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Hsieh Tsung-Yu Nationality: Chinese Address : Republic
of China |
660,000 |
20.00 |
|
Mr. Shih Roger Nationality: American Address : U.S.A.
|
660,000 |
20.00 |
|
Mr. Shih Rick Ju-Feng Nationality: American Address : U.S.A. |
660,000 |
20.00 |
|
Mr. Yang Kun-Yao Nationality: Chinese Address : Republic
of China |
436,920 |
13.24 |
|
Mr. Wang Chien-Kuo Nationality: Chinese Address : Republic
of China |
396,000 |
12.00 |
|
Mr. Shih Wen-Chuen Nationality: Chinese Address : Republic
of China |
355,080 |
10.76 |
|
Mr. Chou Chin-Yuan Nationality: Chinese Address : Republic of
China |
132,000 |
4.00 |
Total Shareholders : 7
Share Structure [as
at June 7, 2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
7 |
3,300,000 |
100.00 |
|
Total |
7 |
3,300,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Chaiwat Piyamongkolwong No.
6891
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 |
32,094,084.41 |
42,721,528.28 |
52,899,086.98 |
|
Trade Accounts & Other Receivable |
188,870,978.85 |
307,970,369.49 |
308,998,814.48 |
|
Inventories |
319,022,423.32 |
431,104,547.17 |
301,861,545.95 |
|
Other Current Assets
|
1,825,616.63 |
5,406,475.37 |
2,618,426.57 |
|
|
|
|
|
|
Total Current Assets
|
541,813,103.21 |
787,202,920.31 |
666,377,873.98 |
|
Fixed Assets |
666,208,172.89 |
650,543,383.55 |
757,739,407.29 |
|
Intangible Assets |
1,302,202.69 |
803,988.75 |
876,142.47 |
|
Other Non-current Assets |
5,336.45 |
5,336.45 |
5,336.45 |
|
Total Assets |
1,209,328,815.24 |
1,438,555,629.06 |
1,424,998,760.19 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Short-term Loan from Financial Institutions |
- |
- |
13,500,000.00 |
|
Trade Accounts & Other
Payable |
585,740,247.28 |
839,405,586.68 |
766,701,976.40 |
|
Current Portion of
Long-term Liabilities |
- |
17,062,752.95 |
43,440,000.00 |
|
Short-term Loan |
- |
- |
3,410,731.49 |
|
Accrued Income Tax |
9,035,769.23 |
2,405,813.99 |
1,585,294.47 |
|
Other Current Liabilities |
18,816.59 |
18,795.59 |
18,795.59 |
|
|
|
|
|
|
Total Current Liabilities |
594,794,833.10 |
858,892,949.21 |
828,656,797.95 |
|
Long-term Loan |
- |
- |
26,520,981.02 |
|
Total Liabilities |
594,794,833.10 |
858,892,949.21 |
855,177,778.97 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 3,300,000 shares |
330,000,000.00 |
330,000,000.00 |
330,000,000.00 |
|
|
|
|
|
|
Capital Paid |
330,000,000.00 |
330,000,000.00 |
330,000,000.00 |
|
Unappropriated |
284,533,982.14 |
249,662,679.85 |
239,820,981.22 |
|
Total Shareholders' Equity |
614,533,982.14 |
579,662,679.85 |
569,820,981.22 |
|
Total Liabilities &
Shareholders' Equity |
1,209,328,815.24 |
1,438,555,629.06 |
1,424,998,760.19 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
1,479,205,698.71 |
1,256,825,130.64 |
1,144,922,472.93 |
|
Other Income |
40,119,559.16 |
6,667,773.73 |
41,630,465.89 |
|
Total Revenues |
1,519,325,257.87 |
1,263,492,904.37 |
1,186,552,938.82 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Change in Finished
Goods &Work in Progress |
122,247,332.24 |
[145,042,891.20] |
[75,699,500.31] |
|
Goods Purchased during
the Year |
175,565,663.05 |
127,794,721.43 |
34,790,415.80 |
|
Raw Material &
Material Supplies |
740,737,152.43 |
857,418,316.80 |
826,052,389.97 |
|
Employee Benefits Expenses |
190,768,926.57 |
165,497,467.56 |
154,292,386.65 |
|
Depreciation & Amortization |
121,776,960.44 |
121,324,171.01 |
105,515,513.27 |
|
Other Expenses |
121,959,179.24 |
118,565,363.15 |
121,800,851.10 |
|
Total Expenses |
1,473,055,213.97 |
1,245,557,148.75 |
1,166,752,056.48 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
46,270,043.90 |
17,935,755.62 |
19,800,882.34 |
|
Financial Costs |
[637,566.38] |
[3,437,809.66] |
[7,158,402.86] |
|
|
|
|
|
|
Profit / [Loss] before Income
Tax |
45,632,477.52 |
14,497,945.96 |
12,642,479.48 |
|
Income Tax |
[10,761,175.23] |
[4,656,247.33] |
[3,835,624.67] |
|
|
|
|
|
|
Net Profit / [Loss] |
34,871,302.29 |
9,841,698.63 |
8,806,854.81 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.91 |
0.92 |
0.80 |
|
QUICK RATIO |
TIMES |
0.37 |
0.41 |
0.44 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.22 |
1.93 |
1.51 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.22 |
0.87 |
0.80 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
127.08 |
159.71 |
127.99 |
|
INVENTORY TURNOVER |
TIMES |
2.87 |
2.29 |
2.85 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
46.60 |
89.44 |
98.51 |
|
RECEIVABLES TURNOVER |
TIMES |
7.83 |
4.08 |
3.71 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
233.32 |
310.98 |
325.08 |
|
CASH CONVERSION CYCLE |
DAYS |
(59.64) |
(61.83) |
(98.59) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
61.95 |
78.39 |
75.19 |
|
SELLING & ADMINISTRATION |
% |
21.13 |
22.82 |
22.69 |
|
INTEREST |
% |
0.04 |
0.27 |
0.63 |
|
GROSS PROFIT MARGIN |
% |
40.77 |
22.14 |
28.45 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.13 |
1.43 |
1.73 |
|
NET PROFIT MARGIN |
% |
2.36 |
0.78 |
0.77 |
|
RETURN ON EQUITY |
% |
5.67 |
1.70 |
1.55 |
|
RETURN ON ASSET |
% |
2.88 |
0.68 |
0.62 |
|
EARNING PER SHARE |
BAHT |
10.57 |
2.98 |
2.67 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.49 |
0.60 |
0.60 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.97 |
1.48 |
1.50 |
|
TIME INTEREST EARNED |
TIMES |
72.57 |
5.22 |
2.77 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
17.69 |
9.77 |
|
|
OPERATING PROFIT |
% |
157.98 |
(9.42) |
|
|
NET PROFIT |
% |
254.32 |
11.75 |
|
|
FIXED ASSETS |
% |
2.41 |
(14.15) |
|
|
TOTAL ASSETS |
% |
(15.93) |
0.95 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 17.69%. Turnover has increased from THB
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
40.77 |
Impressive |
Industrial
Average |
12.33 |
|
Net Profit Margin |
2.36 |
Impressive |
Industrial
Average |
(0.40) |
|
Return on Assets |
2.88 |
Impressive |
Industrial
Average |
0.66 |
|
Return on Equity |
5.67 |
Impressive |
Industrial
Average |
1.58 |
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 40.77%. 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 2.36%,
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 2.88%, 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 5.67%, 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 :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
0.91 |
Risky |
Industrial
Average |
2.49 |
|
Quick Ratio |
0.37 |
|
|
|
|
Cash Conversion Cycle |
(59.64) |
|
|
|
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 0.91 times in 2012, decreased from 0.92 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 0.37 times in 2012,
decreased from 0.41 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 -60 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.49 |
Impressive |
Industrial
Average |
0.55 |
|
Debt to Equity Ratio |
0.97 |
Impressive |
Industrial
Average |
1.23 |
|
Times Interest Earned |
72.57 |
Impressive |
Industrial Average |
(1.98) |
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 72.58 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 0.49 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
7Times Interest Earned Downtrend
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.22 |
Impressive |
Industrial
Average |
(1.75) |
|
Total Assets Turnover |
1.22 |
Deteriorated |
Industrial
Average |
3.98 |
|
Inventory Conversion Period |
127.08 |
|
|
|
|
Inventory Turnover |
2.87 |
Deteriorated |
Industrial
Average |
15.08 |
|
Receivables Conversion Period |
46.60 |
|
|
|
|
Receivables Turnover |
7.83 |
Impressive |
Industrial
Average |
5.92 |
|
Payables Conversion Period |
233.32 |
|
|
|
The company's Account Receivable Ratio is calculated as 7.83 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 decreased from 160 days at the
end of 2011 to 127 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 2.29 times in year 2011 to 2.87 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.22 times and 0.87
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 Uptrend
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.