MIRA
INFORM REPORT
|
Report Date : |
07.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
WS VIBRATORY MACHINE CO., LTD. |
|
|
|
|
Registered Office : |
80/4 Moo 1, T. Nadee, A. Muang, Samutsakorn 74000 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
02.09.1991 |
|
|
|
|
Com. Reg. No.: |
0105534082959 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer and Distributor of Vibrating Machinery, Equipment and Chemicals |
|
|
|
|
No. of Employees : |
35 |
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 |
|
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 |
|
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 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
WS
VIBRATORY MACHINE CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 80/4
MOO 1, T. NADEE,
A. MUANG,
SAMUTSAKORN 74000,
THAILAND
TELEPHONE : [66] 34
854-518-20, 081 822-6214
FAX :
[66] 34
854-517
E-MAIL
ADDRESS : wsvibratory@yahoo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1991
REGISTRATION
NO. : 0105534082959
TAX
ID NO. : 3011009406
CAPITAL REGISTERED : BHT.
22,000,000
CAPITAL PAID-UP : BHT.
22,000,000
SHAREHOLDER’S PROPORTION : THAI :
58.18%
TAIWANESE
: 41.82%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
WU WAN SHU,
TAIWANESE
MANAGING DIRECTOR
NO.
OF STAFF : 35
LINES
OF BUSINESS : VIBRATING MACHINERY,
EQUIPMENT AND
CHEMICALS IMPORTER AND DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
LOW PERFORMANCE
HISTORY
The
subject was established
on September 2, 1991
as a private
limited company under the
originally registered name “W
& S Chemical Co.,
Ltd.”. by Thai
and Taiwanese groups. On
May 9, 2006,
its registered name
was changed to
WS VIBRATORY MACHINE CO.,
LTD. Its business
objective is to import
and distribute wide
range of vibrating
machinery, as well
as related equipment
and chemicals to
domestic market. It
currently employs approximate
35 staff.
The subject’s registered
address is 80/4 Moo 1, T.
Nadee, A. Muang, Samutsakorn 74000, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms. Supannikar Santisathitpong |
|
Thai |
50 |
|
Mr. Wu Wan Shu |
|
Taiwanese |
62 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Wu Wan Shu
is the Managing
Director.
He is Taiwanese
nationality with the
age of 62
years old.
Ms. Supannikar Santisathitpong is
the General Manager.
She is Thai
nationality with the
age of 50
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing of
vibrating machinery, including
grinding machine, centrifugal
barrel finishing machine,
powerful center-faring barrel,
hang-door dehydration machine,
horizontal grinding machine
and etc., as
well as abrasive
and grinding equipment
and related chemicals.
The subject
also provides grinding
and lathe services
for metal works,
including steel, brass,
stainless steel, aluminium
and etc.
PURCHASE
The
products are purchased
from suppliers both
domestic and overseas,
mainly in Taiwan,
Republic of China
and Japan.
SALES
100% of the
products is sold
locally to wholesalers,
manufacturers and end-users.
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
L/C at sight
or T/T.
BANKING
Bangkok
Bank Public Co., Ltd.
EMPLOYMENT
The
subject currently employs
35 staff.
LOCATION DETAILS
The
premise is owned for
administrative office at
the heading address.
Premise is located
in provincial, on
the outskirts of
Bangkok.
Branches:
-
15/13
Moo 6, T. Bangnamjued, A. Muang,
Samutsakorn 74000.
-
46/3
Moo 1, Sukhapiban
1 Rd., Bangkae,
Bangkok 10160.
COMMENT
The
subject was formed
in 1991 as
an importer and
distributor of vibrating
machinery, equipment and chemicals. The
products are for
industrial users. Sales
were strong in
the past years,
while industrial sector
had grown viable.
However, industrial condition in
the last quarter of 2011 was
stagnant due to
massive floods in
the country has
resulted to slow sales
for the year
2011.
However,
in 2012 overall
industrial conditions have subsequently improved,
as well as expansion
of industrial factory
has significantly risen the subject’s
sales with a
positive outlook.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000 divided
into 20,000 shares of
Bht. 100 each
with fully paid.
The
capital was increased
later as follows:
Bht. 3,000,000
on August 14,
1992
Bht. 11,000,000
on March 5,
1996
Bht. 20,000,000
on October 1,
2002
Bht. 22,000,000
on May 9,
2006
The
latest registered capital
was increased to
Bht. 22 million, divided into
220,000 shares of
Bht. 100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Supannikar Santisathitpong Nationality: Thai Address : 80/4
Moo 1, T. Nadee,
A. Muang, Samutsakorn
|
108,000 |
49.09 |
|
Mr. Wu Wan Shu Nationality: Taiwanese Address : Taiwan |
92,000 |
41.81 |
|
Mr. Chaiya Santisathitpong Nationality: Thai Address : 231/15
Moo 3, Bangkaenua,
Pasicharoen, Bangkok |
4,000 |
1.82 |
|
Mrs. Sumitra Anchansart Nationality: Thai Address : 71/51
Sukhumvit 103 Rd.,
Bangna, Bangkok |
4,000 |
1.82 |
|
Mr. Somkid Anchansart Nationality: Thai Address : 71/51
Sukhumvit 103 Rd.,
Bangna, Bangkok |
4,000 |
1.82 |
|
Mrs. Suchitra Chawattanakul Nationality: Thai Address : 507 Rama 1
Rd., Wangmai, Pathumwan, Bangkok |
4,000 |
1.82 |
|
Mr. Wattana Chawattanakul Nationality: Thai Address : 507
Rama 1 Rd.,
Wangmai, Pathumwan, Bangkok |
4,000 |
1.82 |
Total Shareholders : 7
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
128,000 |
58.18 |
|
Foreign - Taiwanese |
1 |
92,000 |
41.82 |
|
Total |
7 |
220,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Varee Chayuti No.
7282
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 |
5,247,734.63 |
5,481,663.37 |
4,476,890.63 |
|
Trade Accounts &
Other Receivable |
|
|
|
|
Trade Accounts
Receivable |
2,863,347.36 |
2,444,388.63 |
2,603,823.34 |
|
Other Receivable |
105,200.57 |
32,830.81 |
- |
|
Inventories |
4,085,740.47 |
4,997,986.52 |
4,916,252.08 |
|
Other Current Assets
|
245.00 |
14,325.25 |
17,073.42 |
|
|
|
|
|
|
Total Current Assets
|
12,302,268.03 |
12,971,194.58 |
12,014,039.47 |
|
Long-term Lending |
450,000.00 |
450,000.00 |
450,000.00 |
|
Fixed Assets |
13,314,873.69 |
15,577,947.24 |
16,900,274.60 |
|
Other Non-current Assets |
215,073.83 |
215,073.83 |
215,073.83 |
|
Total Assets |
26,282,215.55 |
29,214,215.65 |
29,579,387.90 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Trade Accounts & Other Payable
|
|
|
|
|
Trade Accounts
Payable |
3,819,032.97 |
4,575,860.03 |
2,621,926.71 |
|
Other Payable |
142,042.03 |
- |
- |
|
Current Portion of
Lease Contract Liabilities |
1,170,000.00 |
1,250,863.52 |
1,250,863.52 |
|
Other Current Liabilities |
991.25 |
927,571.36 |
360,699.11 |
|
|
|
|
|
|
Total Current Liabilities |
5,132,066.25 |
6,754,294.91 |
4,233,489.34 |
|
Long-term Loan, Net |
1,888,000.00 |
1,388,000.00 |
- |
|
Long-term Loan from
Related Company |
- |
- |
2,688,000.00 |
|
Lease Contract Liabilities, Net |
877,500.00 |
1,966,636.48 |
3,217,500.00 |
|
Total Liabilities |
7,897,566.25 |
10,108,931.39 |
10,138,989.34 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 220,000 shares |
22,000,000.00 |
22,000,000.00 |
22,000,000.00 |
|
|
|
|
|
|
Capital Paid |
22,000,000.00 |
22,000,000.00 |
22,000,000.00 |
|
Retained Earning Unappropriated |
[3,615,350.70] |
[2,894,715.74] |
[2,559,601.44] |
|
Total Shareholders' Equity |
18,384,649.30 |
19,105,284.26 |
19,440,398.56 |
|
Total Liabilities &
Shareholders' Equity |
26,282,215.55 |
29,214,215.65 |
29,579,387.90 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales Income |
7,015,819.83 |
7,323,300.36 |
12,110,490.42 |
|
Service Income |
6,174,479.18 |
9,490,824.90 |
4,172,415.90 |
|
Gain on Disposal
of Assets |
2,128,319.55 |
2,489,520.86 |
1,833,101.81 |
|
Rental Income |
420,000.00 |
420,000.00 |
420,000.00 |
|
Other Income |
70,004.20 |
346,766.27 |
590,194.56 |
|
Total Revenues |
15,808,622.76 |
20,070,412.39 |
19,126,202.69 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
10,426,898.05 |
12,095,761.56 |
12,307,839.30 |
|
Selling Expenses |
- |
80,740.00 |
658,613.61 |
|
Administrative Expenses |
4,692,429.04 |
7,634,302.42 |
4,999,110.32 |
|
Other Expenses |
1,070,790.44 |
65,187.71 |
389,078.15 |
|
Total Expenses |
16,190,117.53 |
19,875,991.69 |
18,354,641.38 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
[381,494.77] |
194,420.70 |
771,561.31 |
|
Financial Costs |
[133,380.00] |
[138,572.48] |
[60,548.49] |
|
Income Tax |
[205,760.19] |
[390,962.52] |
[345,472.70] |
|
|
|
|
|
|
Net Profit / [Loss] |
[720,634.96] |
[335,114.30] |
365,540.12 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.40 |
1.92 |
2.84 |
|
QUICK RATIO |
TIMES |
1.60 |
1.18 |
1.67 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.02 |
1.11 |
0.99 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.52 |
0.59 |
0.56 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
143.02 |
150.82 |
145.80 |
|
INVENTORY TURNOVER |
TIMES |
2.55 |
2.42 |
2.50 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
79.61 |
52.46 |
56.90 |
|
RECEIVABLES TURNOVER |
TIMES |
4.58 |
6.96 |
6.41 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
138.66 |
138.08 |
77.76 |
|
CASH CONVERSION CYCLE |
DAYS |
83.97 |
65.20 |
124.94 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
76.61 |
70.18 |
73.69 |
|
SELLING & ADMINISTRATION |
% |
34.48 |
44.77 |
33.87 |
|
INTEREST |
% |
0.98 |
0.80 |
0.36 |
|
GROSS PROFIT MARGIN |
% |
39.54 |
46.27 |
40.82 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(2.80) |
1.13 |
4.62 |
|
NET PROFIT MARGIN |
% |
(5.29) |
(1.94) |
2.19 |
|
RETURN ON EQUITY |
% |
(3.92) |
(1.75) |
1.88 |
|
RETURN ON ASSET |
% |
(2.74) |
(1.15) |
1.24 |
|
EARNING PER SHARE |
BAHT |
(3.28) |
(1.52) |
1.66 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.30 |
0.35 |
0.34 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.43 |
0.53 |
0.52 |
|
TIME INTEREST EARNED |
TIMES |
(2.86) |
1.40 |
12.74 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(21.03) |
3.18 |
|
|
OPERATING PROFIT |
% |
(296.22) |
(74.80) |
|
|
NET PROFIT |
% |
(115.04) |
(191.68) |
|
|
FIXED ASSETS |
% |
(14.53) |
(7.82) |
|
|
TOTAL ASSETS |
% |
(10.04) |
(1.23) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -21.03%.
Turnover has decreased from THB 17,234,125.26 in 2010 to THB 13,610,299.01 in
2011. While net profit has decreased from THB -335,114.30 in 2010 to THB
-720,634.96 in 2011. And total assets has decreased from THB 29,214,215.65 in
2010 to THB 26,282,215.55 in 2011.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
39.54 |
Impressive |
Industrial
Average |
14.05 |
|
Net Profit Margin |
(5.29) |
Deteriorated |
Industrial
Average |
3.37 |
|
Return on Assets |
(2.74) |
Deteriorated |
Industrial
Average |
4.00 |
|
Return on Equity |
(3.92) |
Deteriorated |
Industrial
Average |
7.42 |
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 39.54%. 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 -5.29%.
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 -2.74%.
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 -3.92%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
2.40 |
Impressive |
Industrial
Average |
1.39 |
|
Quick Ratio |
1.60 |
|
|
|
|
Cash Conversion Cycle |
83.97 |
|
|
|
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 2.4 times in 2011, increased from 1.92 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 1.6 times in 2011,
increased from 1.18 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 84 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
SATISFACTORY
LEVERAGE RATIO
|
Debt Ratio |
0.30 |
Impressive |
Industrial
Average |
0.49 |
|
Debt to Equity Ratio |
0.43 |
Impressive |
Industrial
Average |
0.90 |
|
Times Interest Earned |
(2.86) |
Risky |
Industrial
Average |
4.54 |
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 -2.87 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 0.3 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 Downtrend
Times Interest Earned Uptrend
ACTIVITY : RISKY
ACTIVITY RATIO
|
Fixed Assets Turnover |
1.02 |
Deteriorated |
Industrial
Average |
2.20 |
|
Total Assets Turnover |
0.52 |
Deteriorated |
Industrial
Average |
1.17 |
|
Inventory Conversion Period |
143.02 |
|
|
|
|
Inventory Turnover |
2.55 |
Deteriorated |
Industrial
Average |
5.14 |
|
Receivables Conversion Period |
79.61 |
|
|
|
|
Receivables Turnover |
4.58 |
Satisfactory |
Industrial
Average |
5.24 |
|
Payables Conversion Period |
138.66 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.58 and 6.96 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 decreased from 151 days at the
end of 2010 to 143 days at the end of 2011. This represents a positive trend.
And Inventory turnover has increased from 2.42 times in year 2010 to 2.55 times
in year 2011.
The company's Total Asset Turnover is calculated as 0.52 times and 0.59
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 Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.08 |
|
|
1 |
Rs.83.12 |
|
Euro |
1 |
Rs.72.02 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.