MIRA
INFORM REPORT
|
Report Date : |
22.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
NOVA SCIENCE CO., LTD. |
|
|
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Registered Office : |
21st Floor, Room C2, MD Tower, 1 Soi Bangna-Trad 25, Bangna-Trad Road, Bangna, Bangkok 10260 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
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|
|
|
Date of Incorporation : |
12.02.2001 |
|
|
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Com. Reg. No.: |
0105544014433 |
|
|
|
|
Legal Form : |
Private Limited Company |
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|
|
|
Line of Business : |
Manufacturer, Distributor and Contractor of Biological Products |
|
|
|
|
No. of Employees : |
60 |
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 – 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
NOVA
SCIENCE CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 21st FLOOR,
ROOM C2, MD
TOWER,
1
SOI BANGNA-TRAD 25,
BANGNA-TRAD ROAD,
BANGNA,
BANGKOK 10260, THAILAND
TELEPHONE : [66] 2744-1023
FAX :
[66] 2744-0910
E-MAIL
ADDRESS : siridej9@gmail.com
siridej@nova-science.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2001
REGISTRATION
NO. : 0105544014433
TAX
ID NO. : 3030226948
CAPITAL REGISTERED : BHT. 50,000,000
CAPITAL PAID-UP : BHT.
50,000,000
SHAREHOLDER’S PROPORTION : THAI :
94.40%
SAMOA :
5.60%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SIRIDEJ SUWANMANON,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 60
LINES
OF BUSINESS : BIOLOGICAL PRODUCTS
MANUFACTURER, DISTRIBUTOR
AND
CONTRACTOR
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 February 12, 2001 as
a private limited
company under the originally
registered name “Strong
Crop Industry Co., Ltd.” by Thai and
Foreign groups. On
February 19, 2002, its registered
name was changed
to NOVA SCIENCE
CO., LTD. Its
business objective is to
produce biological products
to both domestic
and international markets. The
subject currently employs
approximately 60 staff.
The
subject’s registered address
is 21st Flr., Room
C2, MD
Tower, 1 Soi
Bangna-Trad 25, Bangna-Trad
Rd., Bangna, Bangkok
10260, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Siridej Suwanmanon |
[x] |
Thai |
48 |
|
Mr. Popsant Wongwaiwit |
|
Thai |
49 |
|
Mr. Panuwat Srareema |
|
Thai |
51 |
|
Mr. Pisinj Rungvichaniwat |
|
Thai |
59 |
AUTHORIZED PERSON
Only the mentioned
director [x] signs
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Siridej Suwanmanon
is the Managing
Director.
He is Thai
nationality with the
age of 48
years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing and distributing
various kinds of
biological products, including
bio-organic fertilizer,
bio-control fungicide and
bio supplements. The
products are as
follows:
·
Chemical Free
Bio-Controlled Organic Products
-
Purple
Bio-Lizer [fertilizer]
-
Nova-Pro
[fertilizer]
-
Nova-Cide
[fungicide]
-
Newbot F [fungicide]
·
Chemical Free
Bio-Controlled Organic Products
-
Nova-Bio [folial
fertilizer or water fertigation]
-
Marang nog
[organic insecticide]
-
V-Oil Plus
[insecticide]
·
Bio-Controlled Hybrid
Products
-
Green
Bio-Lizer [fertilizer]
-
Red
Bio-Lizer [fertilizer]
-
Yellow
Bio-Lizer [fertilizer]
-
Nova N [folial
fertilizer]
-
Nova P [folial
fertilizer]
-
Nova K [folial
fertilizer]
The subject also
provides manufacturing service
of the products
according to customer’s
formulation and brand.
PRODUCTION CAPACITY
20,000 metric tons
per month
PURCHASE
Raw materials are
purchased from suppliers
both domestic and
overseas, mainly in
Republic of China,
Myanmar, Singapore and
India.
SALES
80% of the
products is sold
and serviced locally
to wholesalers, farmers
and end-users both private and government
sectors, the remaining
20% is exported
to Laos, Cambodia, Vietnam, Malaysia,
Indonesia and Singapore.
RELATED AND
AFFILIATED COMPANY
Nova Science Distribution
Co., Ltd.
Business Type :
Distributor of fertilizer
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.
Kasikornbank
Public Co., Ltd.
EMPLOYMENT
The
subject currently employs
approximately 60 staff.
LOCATION DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in commercial/residential area.
Factories
are located in Karnchanaburi and
Saraburi provinces.
COMMENT
The
subject was formed
in 2001 as
a manufacturer, distributor
and exporter of
biochemical-products. Its products
are mostly served
to agricultural industry.
Subject reported moderate sales in 2011
and continued in
strong demand in the
year 2012.
Subject’s
business outlook is
positive.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 1,000,000 divided into 100 shares of
Bht. 10,000 each with
fully paid.
The
capital was increased
later as follows:
Bht. 12,000,000
on November 12,
2002
Bht. 15,000,000
on August 7,
2003
Bht. 30,000,000
on April 23,
2004
Bht. 50,000,000
on June 1,
2004
The
latest registered capital
was increased to
Bht. 50,000,000 divided
into 500,000 shares of
Bht. 100 each with
fully paid.
MAIN
SHAREHOLDERS : [as at
April 29, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Siridej Suwanmanon Nationality: Thai Address : 17
Seri 2 Rd.,
Suanluang, Bangkok |
342,654 |
68.53 |
|
Mr. Boonmee Ruengrat Nationality: Thai Address : 21/721
Moo 1, Bangna-Trad
Rd., Bangna, Bangkok |
36,389 |
7.28 |
|
Yess Limited Nationality: Samoa Address : Samoa |
28,022 |
5.60 |
|
Mr. Pisinj Rungvichaniwat Nationality: Thai Address : 3/88
Soi Ladprao 31,
Ladyao, Jatujak, Bangkok |
16,813 |
3.36 |
|
Mr. Panuwat Srareema Nationality: Thai Address : 79/191
Moo 10, Bangmod,
Jomthong, Bangkok |
15,372 |
3.07 |
|
Mr. Pisith Pusanakom Nationality: Thai Address : 50/1
Soi Nualnoi, Klongtonnua, Wattana,
Bangkok |
14,945 |
2.99 |
|
Mrs. Kobboon Sroythong Nationality: Thai Address : 112/49
Moo 3, Ladkrabang,
Bangkok |
13,010 |
2.60 |
|
Others |
32,795 |
6.57 |
Total Shareholders : 15
Share Structure [as
at April 29,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
14 |
471,978 |
94.40 |
|
Foreign-Samoa |
1 |
28,022 |
5.60 |
|
Total |
15 |
500,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Nuengputh Vimuttinan No.
6661
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 |
866,520.44 |
156,073.19 |
323,294.96 |
|
Trade Accounts Receivable
|
43,932,804.81 |
36,658,573.31 |
26,501,313.16 |
|
Advance Payment to Person
& Related Company |
15,240,761.70 |
15,260,998.25 |
15,315,224.19 |
|
Inventories |
4,762,108.36 |
4,672,414.60 |
3,225,565.48 |
|
Material Supplies |
229,636.17 |
185,215.97 |
175,151.80 |
|
Other Current Assets
|
251,352.40 |
257,566.43 |
5,925,260.07 |
|
|
|
|
|
|
Total Current Assets |
65,283,183.88 |
57,190,841.75 |
51,465,809.66 |
|
Long-term Investment
|
14,998,800.00 |
14,998,800.00 |
14,998,800.00 |
|
Fixed Assets |
24,417,716.88 |
25,530,135.55 |
3,118,617.89 |
|
Other Non-current Assets |
1,047,053.97 |
988,599.37 |
989,320.50 |
|
Total Assets |
105,746,754.73 |
98,708,374.67 |
70,572,548.05 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institutions |
10,005,892.05 |
9,584,646.83 |
5,028,704.07 |
|
Trade Accounts &
Notes Payable |
25,079,322.80 |
12,934,396.90 |
13,235,570.21 |
|
Short-term Loan from Related Person |
2,416,872.22 |
3,482,181.50 |
4,715,730.78 |
|
Current Portion of Long-term Liabilities |
431,820.00 |
547,380.00 |
547,380.00 |
|
Other Current Liabilities |
14,479,447.87 |
14,492,524.35 |
13,389,177.70 |
|
|
|
|
|
|
Total Current Liabilities |
52,413,354.94 |
41,041,129.58 |
36,916,562.76 |
|
Other Long-term Liabilities |
19,172,085.17 |
23,756,956.95 |
1,445,091.52 |
|
Total Liabilities |
71,585,440.11 |
64,798,086.53 |
38,361,654.28 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 500,000 shares |
50,000,000.00 |
50,000,000.00 |
50,000,000.00 |
|
|
|
|
|
|
Capital Paid |
50,000,000.00 |
50,000,000.00 |
50,000,000.00 |
|
Retained Earning Unappropriated |
[15,838,685.38] |
[16,089,711.86] |
[17,789,106.23] |
|
Total Shareholders' Equity |
34,161,314.62 |
33,910,288.14 |
32,210,893.77 |
|
Total Liabilities &
Shareholders' Equity |
105,746,754.73 |
98,708,374.67 |
70,572,548.05 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales Income |
43,493,301.43 |
57,721,598.70 |
50,575,127.60 |
|
Interest Income |
488.62 |
200.13 |
229.02 |
|
Gain on Sale of
Assets |
- |
99,999.00 |
100,660.22 |
|
Other Income |
619,922.26 |
156,554.03 |
121,207.89 |
|
Total Revenues |
44,113,712.31 |
57,978,351.86 |
50,797,224.73 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
31,423,796.35 |
40,203,808.18 |
31,400,097.58 |
|
Selling Expenses |
3,288,270.36 |
5,622,903.10 |
14,642,762.17 |
|
Administrative Expenses |
6,715,511.83 |
8,173,182.47 |
- |
|
Financial Expenses |
2,435,107.29 |
2,279,063.74 |
2,187,306.32 |
|
Total Expenses |
43,862,685.83 |
56,278,957.49 |
48,230,166.07 |
|
|
|
|
|
|
Profit / [Loss] before Income
Tax |
251,026.48 |
1,699,394.37 |
2,567,058.66 |
|
Income Tax |
- |
- |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
251,026.48 |
1,699,394.37 |
2,567,058.66 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.25 |
1.39 |
1.39 |
|
QUICK RATIO |
TIMES |
1.15 |
1.27 |
1.14 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.78 |
2.26 |
16.22 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.41 |
0.58 |
0.72 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
55.31 |
42.42 |
37.49 |
|
INVENTORY TURNOVER |
TIMES |
6.60 |
8.60 |
9.73 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
368.69 |
231.81 |
191.26 |
|
RECEIVABLES TURNOVER |
TIMES |
0.99 |
1.57 |
1.91 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
291.31 |
117.43 |
153.85 |
|
CASH CONVERSION CYCLE |
DAYS |
132.70 |
156.80 |
74.90 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
72.25 |
69.65 |
62.09 |
|
SELLING & ADMINISTRATION |
% |
23.00 |
23.90 |
28.95 |
|
INTEREST |
% |
5.60 |
3.95 |
4.32 |
|
GROSS PROFIT MARGIN |
% |
29.18 |
30.79 |
38.35 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.58 |
2.94 |
5.08 |
|
NET PROFIT MARGIN |
% |
0.58 |
2.94 |
5.08 |
|
RETURN ON EQUITY |
% |
0.73 |
5.01 |
7.97 |
|
RETURN ON ASSET |
% |
0.24 |
1.72 |
3.64 |
|
EARNING PER SHARE |
BAHT |
0.50 |
3.40 |
5.13 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.68 |
0.66 |
0.54 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.10 |
1.91 |
1.19 |
|
TIME INTEREST EARNED |
TIMES |
0.10 |
0.75 |
1.17 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(24.65) |
14.13 |
|
|
OPERATING PROFIT |
% |
(85.23) |
(33.80) |
|
|
NET PROFIT |
% |
(85.23) |
(33.80) |
|
|
FIXED ASSETS |
% |
(4.36) |
718.64 |
|
|
TOTAL ASSETS |
% |
7.13 |
39.87 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -24.65%. Turnover has decreased from THB 57,721,598.70
in 2010 to THB 43,493,301.43 in 2011. While net profit has decreased from THB
1,699,394.37 in 2010 to THB 251,026.48 in 2011. And total assets has increased
from THB 98,708,374.67 in 2010 to THB 105,746,754.73 in 2011.
PROFITABILITY : ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
29.18 |
Impressive |
Industrial
Average |
12.19 |
|
Net Profit Margin |
0.58 |
Satisfactory |
Industrial
Average |
0.62 |
|
Return on Assets |
0.24 |
Deteriorated |
Industrial
Average |
0.76 |
|
Return on Equity |
0.73 |
Deteriorated |
Industrial
Average |
2.46 |
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 29.18%. 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 0.58%.
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 0.24%.
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 0.73%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.25 |
Satisfactory |
Industrial
Average |
1.30 |
|
Quick Ratio |
1.15 |
|
|
|
|
Cash Conversion Cycle |
132.70 |
|
|
|
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 1.25 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 1.15 times in 2011,
decreased from 1.27 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 133 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.68 |
Acceptable |
Industrial Average |
0.59 |
|
Debt to Equity Ratio |
2.10 |
Risky |
Industrial
Average |
1.43 |
|
Times Interest Earned |
0.10 |
Risky |
Industrial
Average |
0.44 |
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 0.11 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 0.68 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 Downtrend
Times Interest Earned Downtrend
ACTIVITY :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
1.78 |
Satisfactory |
Industrial
Average |
2.30 |
|
Total Assets Turnover |
0.41 |
Deteriorated |
Industrial
Average |
1.06 |
|
Inventory Conversion Period |
55.31 |
|
|
|
|
Inventory Turnover |
6.60 |
Impressive |
Industrial
Average |
2.12 |
|
Receivables Conversion Period |
368.69 |
|
|
|
|
Receivables Turnover |
0.99 |
Deteriorated |
Industrial
Average |
2.08 |
|
Payables Conversion Period |
291.31 |
|
|
|
The company's Account Receivable Ratio is calculated as 0.99 and 1.57 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 42 days at the
end of 2010 to 55 days at the end of 2011. This represents a negative trend.
And Inventory turnover has decreased from 8.6 times in year 2010 to 6.6 times
in year 2011.
The company's Total Asset Turnover is calculated as 0.41 times and 0.58
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 Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.48 |
|
|
1 |
Rs.82.71 |
|
Euro |
1 |
Rs.72.23 |
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.