MIRA
INFORM REPORT
|
Report Date : |
07.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
Jay Vijay Diamond Co., Ltd. |
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Registered Office : |
37th Floor, Unit I1, Jewelry Trade Center, 919/449 Silom Road, Silom, Bangrak, Bangkok 10500 |
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Country : |
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|
Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
11.01.1991 |
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Com. Reg. No.: |
0105534003471 |
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Legal Form : |
Private Limited Company |
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|
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LINE OF BUSINESS : |
IMPORTER,
DISTRIBUTOR AND EXPORTER OF DIAMONDS, GEMSTONES AND JEWELRY PRODUCTS. |
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|
No. of Employees : |
3 |
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 : |
Small Company |
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Payment Behaviour : |
Slow |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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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 enjoyed solid growth from 2000 to 2007 - averaging more than 4% per year - as it recovered from the Asian financial crisis of 1997-98. Thai exports - mostly machinery and electronic components, agricultural commodities, and jewelry - continue to drive the economy, accounting for more than half of GDP. The global financial crisis of 2008-09 severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. In 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded from their depressed 2009 level. Steady economic growth at just below 4% during the first three quarters of 2011 was interrupted by historic flooding in October and November in the industrial areas north of Bangkok, crippling the manufacturing sector and leading to a revised growth rate of only 0.1% for the year. The industrial sector is poised to recover from the second quarter of 2012 onward, however, and the government anticipates the economy will probably grow between 5.5 and 6.5% for 2012, while private sector forecasts range between 3.8% and 5.7%.
Source
: CIA
Company name
JAY
VIJAY DIAMOND CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 37th FLOOR,
UNIT I1, JEWELRY
TRADE CENTER,
919/449 SILOM ROAD,
SILOM, BANGRAK,
BANGKOK
10500, THAILAND
TELEPHONE :
[66] 2236-3070-4, 2236-9491
FAX :
[66] 2236-1918
E-MAIL
ADDRESS : saraff@saraff.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1991
REGISTRATION
NO. : 0105534003471
TAX
ID NO. : 3101929942
CAPITAL REGISTERED : BHT. 12,000,000
CAPITAL PAID-UP : BHT.
12,000,000
SHAREHOLDER’S PROPORTION : THAI :
63.08%
INDIAN
: 36.92%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. NANDKISHOR GOVINDRAM
SARAFF, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 3
LINES
OF BUSINESS : DIAMONDS, GEMSTONES
AND JEWELRY PRODUCTS
IMPORTER,
DISTRIBUTOR AND EXPORTER
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 11, 1991
as a private
limited company by
Thai and Indian groups,
under the registered
name JAY VIJAY
DIAMOND CO., LTD.,
with the business
objective to import,
distribute and export various kinds
of diamonds, gemstones
and jewelry products.
It currently employs
3 staff.
The
subject’s registered address
is 37th Floor,
Unit I1, Jewelry
Trade Center, 919/449
Silom Rd., Silom,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Varanyu Jirangkanont |
|
Thai |
47 |
|
Mr. Nandkishor Govindram Saraff |
|
Thai |
49 |
|
Mr. Ganesh Kumar Agrawal |
|
Indian |
38 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Nandkishor Govindram Saraff is the
Managing Director.
He is Thai
nationality with the
age of 49
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing,
distributing and exporting various
kinds of diamonds,
gemstones and jewelry
products.
PURCHASE
90%
of the products
is imported from
India, Hong Kong
and Belgium, the
remaining 10% is
purchased from local
suppliers.
SALES
The products are sold to
traders and manufacturers
both locally and
international, mainly in
India, Hong Kong and
Europe.
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.
EMPLOYMENT
The subject currently
employs 3 staff.
LOCATION DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in a prime commercial
area.
COMMENT
The
subject reported moderate
sales in 2011
from domestic consumption,
as well as
overall jewelry industry
in domestic market
has been enjoyed growing
since the beginning
of 2012, meanwhile
the subject’s business
remains promising.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 5,000,000 divided
into 50,000 shares
of Bht. 100
each with fully
paid.
The
capital was increased
later as follows:
Bht. 10,000,000
on July 1,
1998
Bht. 12,000,000
on August 3,
2001
The
latest registered capital
was increased to
Bht. 12,000,000 divided into
120,000 shares of
Bht. 100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE [as at April
30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Suzil Kumar Saraff Nationality: Thai Address : 1349/62
Charoennakorn Rd.,
Banglampulang, Klongsan, Bangkok |
63,200 |
52.66 |
|
Mr. Ganesh Kumar Agrawal Nationality: Indian Address : 908/45
Rama 3 Rd.,
Bangpongpang, Yannawa, Bangkok |
44,300 |
36.92 |
|
Mr. Nandkishor Govindram Saraff Nationality: Thai Address : 46/2-3
Pan Rd., Silom,
Bangrak, Bangkok |
12,500 |
10.42 |
Total Shareholders : 3
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
75,700 |
63.08 |
|
Foreign - Indian |
1 |
44,300 |
36.92 |
|
Total |
3 |
120,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Kunakoch
Thiratantayaporn No. 7227
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash and Cash Equivalents |
1,254,694.85 |
2,013,617.68 |
690,676.25 |
|
Trade Accounts & Other
Receivable |
11,290,763.41 |
3,628,072.74 |
41,738.35 |
|
Inventories |
25,962,176.23 |
16,488,333.17 |
36,743,446.21 |
|
Short-term Lending to
Related Company |
- |
- |
30,000.00 |
|
Other Current Assets
|
7,884.85 |
3,719.98 |
360,055.40 |
|
|
|
|
|
|
Total Current Assets
|
38,515,519.34 |
22,133,743.57 |
37,865,916.21 |
|
Fixed Account pledged as
a Collateral |
5,771.67 |
5,743.24 |
5,686.94 |
|
Fixed Assets |
9,245,223.97 |
9,200,152.92 |
9,044,029.89 |
|
Deposit |
22,000.00 |
134,200.00 |
27,794.39 |
|
Total Assets |
47,788,514.98 |
31,473,839.73 |
46,943,427.43 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Short-term Loan from Financial Institutions |
11,000,000.00 |
11,000,000.00 |
11,162,925.99 |
|
Trade Accounts & Other
Payable |
20,039,380.17 |
3,487,496.97 |
18,091,253.23 |
|
Current Portion of
Financial Lease Contract Liabilities |
207,425.93 |
115,128.00 |
- |
|
Current Portion of Long-term
Loans |
862,989.70 |
1,357,560.00 |
1,346,680.00 |
|
Other Current Liabilities |
- |
- |
418,595.81 |
|
|
|
|
|
|
Total Current Liabilities |
32,109,795.80 |
15,960,184.97 |
31,019,455.03 |
|
Financial Lease Contract Liabilities, Net |
432,295.81 |
300,822.00 |
- |
|
Long-term Loans, Net |
6,829,024.70 |
7,144,496.84 |
7,919,295.20 |
|
Employee Benefits Obligation |
611,071.87 |
- |
- |
|
Total Liabilities |
39,982,188.18 |
23,405,503.81 |
38,938,750.23 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 120,000 shares |
12,000,000.00 |
12,000,000.00 |
12,000,000.00 |
|
|
|
|
|
|
Capital Paid |
12,000,000.00 |
12,000,000.00 |
12,000,000.00 |
|
Retained Earning Unappropriated |
[4,193,673.20] |
[3,931,664.08] |
[3,995,322.80] |
|
Total Shareholders' Equity |
7,806,326.80 |
8,068,335.92 |
8,004,677.20 |
|
Total Liabilities & Shareholders' Equity |
47,788,514.98 |
31,473,839.73 |
46,943,427.43 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales Income |
90,252,095.81 |
70,382,921.73 |
78,094,153.94 |
|
Other Income |
137,492.37 |
73,736.81 |
9,192.46 |
|
Gain on Exchange Rate |
- |
587,383.79 |
352,174.32 |
|
Total Revenues |
90,389,588.18 |
71,044,042.33 |
78,455,520.72 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
81,094,570.09 |
62,956,422.18 |
70,160,702.11 |
|
Selling Expenses |
385,119.50 |
390,180.76 |
330,225.93 |
|
Administrative Expenses |
7,488,690.19 |
6,405,558.30 |
6,223,139.67 |
|
Loss on Exchange Rate |
328,276.15 |
- |
- |
|
Total Expenses |
89,296,655.93 |
69,752,161.24 |
76,714,067.71 |
|
|
|
|
|
|
Profit before Financial Cost & Income
Tax |
1,092,932.25 |
1,291,881.09 |
1,741,453.01 |
|
Financial Cost |
[1,291,903.23] |
[1,198,335.96] |
[1,115,232.59] |
|
Profit / [Loss] before Income
Tax |
[198,970.98] |
93,545.13 |
626,220.42 |
|
Income Tax |
[63,038.14] |
[29,886.41] |
[177,783.52] |
|
|
|
|
|
|
Net Profit / [Loss] |
[262,009.12] |
63,658.72 |
448,436.90 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.20 |
1.39 |
1.22 |
|
QUICK RATIO |
TIMES |
0.39 |
0.35 |
0.02 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
9.76 |
7.65 |
8.63 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.89 |
2.24 |
1.66 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
116.85 |
95.59 |
191.15 |
|
INVENTORY TURNOVER |
TIMES |
3.12 |
3.82 |
1.91 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
45.66 |
18.81 |
0.20 |
|
RECEIVABLES TURNOVER |
TIMES |
7.99 |
19.40 |
1,871.04 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
90.20 |
20.22 |
94.12 |
|
CASH CONVERSION CYCLE |
DAYS |
72.32 |
94.19 |
97.23 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
89.85 |
89.45 |
89.84 |
|
SELLING & ADMINISTRATION |
% |
8.72 |
9.66 |
8.39 |
|
INTEREST |
% |
1.43 |
1.70 |
1.43 |
|
GROSS PROFIT MARGIN |
% |
10.30 |
11.49 |
10.62 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.21 |
1.84 |
2.23 |
|
NET PROFIT MARGIN |
% |
(0.29) |
0.09 |
0.57 |
|
RETURN ON EQUITY |
% |
(3.36) |
0.79 |
5.60 |
|
RETURN ON ASSET |
% |
(0.55) |
0.20 |
0.96 |
|
EARNING PER SHARE |
BAHT |
(2.18) |
0.53 |
3.74 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.84 |
0.74 |
0.83 |
|
DEBT TO EQUITY RATIO |
TIMES |
5.12 |
2.90 |
4.86 |
|
TIME INTEREST EARNED |
TIMES |
0.85 |
1.08 |
1.56 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
28.23 |
(9.87) |
|
|
OPERATING PROFIT |
% |
(15.40) |
(25.82) |
|
|
NET PROFIT |
% |
(511.58) |
(85.80) |
|
|
FIXED ASSETS |
% |
0.49 |
1.73 |
|
|
TOTAL ASSETS |
% |
51.84 |
(32.95) |
|
ANNUAL GROWTH:
SATISFACTORY
An annual sales growth is 28.23%. Turnover has increased from THB
70,382,921.73 in 2010 to THB 90,252,095.81 in 2011. While net profit has decreased
from THB 63,658.72 in 2010 to THB -262,009.12 in 2011. And total assets has
increased from THB 31,473,839.73 in 2010 to THB 47,788,514.98 in 2011.
PROFITABILITY:
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
10.30 |
Impressive |
Industrial Average |
9.66 |
|
Net Profit Margin |
(0.29) |
Deteriorated |
Industrial Average |
(0.20) |
|
Return on Assets |
(0.55) |
Deteriorated |
Industrial Average |
(0.27) |
|
Return on Equity |
(3.36) |
Deteriorated |
Industrial Average |
(0.72) |
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 10.3%. 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 -0.29%.
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 -0.55%.
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 -3.36%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Stable
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.20 |
Acceptable |
Industrial Average |
1.72 |
|
Quick Ratio |
0.39 |
|
|
|
|
Cash Conversion Cycle |
72.32 |
|
|
|
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 1.2 times in 2011, decreased from 1.39 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 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 0.39 times in 2011,
increased from 0.35 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 73 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.84 |
Acceptable |
Industrial Average |
0.60 |
|
Debt to Equity Ratio |
5.12 |
Risky |
Industrial Average |
1.67 |
|
Times Interest Earned |
0.85 |
Risky |
Industrial Average |
0.63 |
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 0.85 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 0.84 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:
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
9.76 |
Satisfactory |
Industrial Average |
10.73 |
|
Total Assets Turnover |
1.89 |
Impressive |
Industrial Average |
1.47 |
|
Inventory Conversion Period |
116.85 |
|
|
|
|
Inventory Turnover |
3.12 |
Impressive |
Industrial Average |
2.17 |
|
Receivables Conversion Period |
45.66 |
|
|
|
|
Receivables Turnover |
7.99 |
Impressive |
Industrial Average |
3.31 |
|
Payables Conversion Period |
90.20 |
|
|
|
The company's Account Receivable Ratio is calculated as 7.99 and 19.40
in 2011 and 2010 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
2011 decreased from 2010. 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 96 days at the
end of 2010 to 117 days at the end of 2011. This represents a negative trend.
And Inventory turnover has decreased from 3.82 times in year 2010 to 3.12 times
in year 2011.
The company's Total Asset Turnover is calculated as 1.89 times and 2.24
times in 2011 and 2010 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 Uptrend
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.
-
The diamond jewellery industry in India today may be
more than Rs 60000 mil and is rated amongst the fastest growing in the
world. Indi ranks third in the world in domestic diamond consumption.
-
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 –
DIAMOND
SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
-
Most of the money borrowed from the banks in the name
of their diamond business has been diverted in real estate and the share
market. The banks are not in a position to seize their properties because in
many cases, these were purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.09 |
|
|
1 |
Rs.83.12 |
|
Euro |
1 |
Rs.72.02 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.