MIRA
INFORM REPORT
|
Report Date : |
25.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
WORLD
FLEX PUBLIC COMPANY
LIMITED |
|
|
|
|
Registered Office : |
59/1 Moo 5, Highway No. 3191, T. Maenamkoo, A. Pluakdaeng, Rayong 21140 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
26.12.2002 |
|
|
|
|
Com. Reg. No.: |
0107545000390 [Former : 40854500712 |
|
|
|
|
Legal Form : |
Public
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, distributor
and exporter of rubber thread
products |
|
|
|
|
No. of Employees : |
200 |
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 but Correct |
|
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 (31.03.2012) |
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
WORLD FLEX PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 59/1
MOO 5, HIGHWAY NO. 3191,
T.
MAENAMKOO, A. PLUAKDAENG,
RAYONG 21140,
THAILAND
TELEPHONE : [66] 38
637-559
FAX : [66] 38
637-560-1
E-MAIL
ADDRESS : chalongkwan@thaitexgroup.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1991
REGISTRATION
NO. : 0107545000390
[Former : 40854500712]
TAX
ID NO. : 3101982268
CAPITAL REGISTERED : BHT. 308,000,000
CAPITAL PAID-UP : BHT.
308,000,000
SHAREHOLDER’S PROPORTION : THAI
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. VORATHEP WONGSASUTTHIKUL, THAI
PRESIDENT
NO.
OF STAFF : 200
LINES
OF BUSINESS : RUBBER THREAD
PRODUCTS
MANUFACTURER, 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 originally registered
on December 26,
2002 as a
private limited company under
the registered name “World Flex
Company Limited” by
Thai groups. On
December 26, 2002,
its status was
converted to a
public limited company
under the name
WORLD FLEX PUBLIC
COMPANY LIMITED. Its
business objective is
a manufacturer and
distributor wide range
of rubber thread
products for domestic
and export markets.
The subject currently
employs approximately 200 staff.
Subject
is a subsidiary
of Thai Rubber
Latex Corporation [Thailand]
Public Company Limited,
which is the
world’s largest producer
of latex concentrate.
The subject’s registered
address is 59/1
Moo 5, Highway No. 3191,
T. Maenamkoo, A. Pluakdaeng,
Rayong 21140, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Vorathep Wongsasutthikul |
|
Thai |
64 |
|
Mr. Paibul Voraprateep |
|
Thai |
74 |
|
Mr. Prachanont Temritthikulchai |
|
Thai |
67 |
|
Mr. Chavalit Tiyadechachai |
|
Thai |
40 |
|
Mr. Prawit Voraprateep |
|
Thai |
41 |
|
Ms. Chalongkwan Wongsasutthikul |
|
Thai |
41 |
|
Mr. Phatrapol Wongsasutthikul |
|
Thai |
39 |
AUTHORIZED
PERSON
Any three of
the above directors
can jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Vorathep Wongsasutthikul is
the President.
He is Thai
nationality with the age of
64 years old.
Mr. Paibul Voraprateep is
the Vice President.
He is Thai
nationality with the
age of 74
years old.
Mr. Prachanont Temritthikulchai is
the Vice President.
He is Thai
nationality with the
age of 67 years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing and marketing
of natural rubber
thread products, including
rubber thread coated
with talcum and
rubber coated with
polymer, mainly for socks,
stockings, trouser bands,
lingerie and all
kinds of rubber
bands, textile and
related industries.
PRODUCTION CAPACITY
12,000-14,000 tons
per annum.
PURCHASE
100% of its
raw material is
purchased from local
suppliers.
MAJOR
SUPPLIERS
Thai Rubber Latex
Corporation [Thailand] Public
Company Limited
Thai Rubber and
Latex Co., Ltd.
SALES
The products are
sold by wholesale
to customers both
local and overseas, mainly
in Japan, U.S.A., Germany,
Taiwan, Republic of
China, Pakistan, Turkey,
Korea, Malaysia, Indonesia,
Vietnam, India, Iran,
Spain, Italy, U.K.,
Australia, Singapore and
Middle East 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
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.
Export are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
200 staff.
LOCATION
DETAILS
The
premise is owned
for administrative office
and factory at
the heading address.
Premise
is located in
rural area.
Bangkok
Office : 30 Soi
Bangna-Trad 25 Rd.,
Bangna, Bangkok 10260
Tel.: [66]
2744-0888, Fax. : [66] 2744-0350
COMMENT
The
subject is enjoying
its outstanding business.
With high quality thread
products, reliable standards and continuous product
development, its sales
income has gradually
improved.
Its
business trend is
moderate and continuing
expanded.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 90,000,000 divided
into 900,000 shares
of Bht. 100
each.
The
capital was increased
later as follows:
Bht. 270,000,000
on January 30,
2007
Bht. 308,000,000
on May 30,
2012
The
latest registered capital was
increased to Bht. 308,000,000 divided
into 77,000,000 shares
of Bht. 4
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 27, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Thai Rubber Latex
Corporation [Thailand] Public
Company Limited Nationality: Thai Address : 99/1-3
Moo 13, Bangna-Trad
Rd.,
Bangkaew, Bangplee, Samutprakarn |
75,799,454 |
98.44 |
|
Mr. Viroj Wongpiyasathit Nationality: Thai Address : 102
Super Highway, Ladyao,
Bangkhen, Bangkok |
1,200,000 |
1.56 |
|
Other Shareholders |
546 |
- |
Total Shareholders : 61
Share Structure [as
at April 27,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
61 |
77,000,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
61 |
77,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Vichart Logeskravee No.
4451
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 [Adjusted] |
|
|
|
|
|
|
Cash and Cash Equivalents |
87,235,549 |
28,781,025 |
14,850,714 |
|
Trade Accounts &
Other Receivable |
93,563,206 |
234,605,973 |
187,660,660 |
|
Inventories |
121,471,345 |
253,571,930 |
250,556,753 |
|
Unrealized Profit from
Forward Contract |
- |
14,887,533 |
955,068 |
|
Deferred Income - Tax Coupon |
- |
- |
7,439,533 |
|
Refundable Value Added Tax |
- |
- |
7,977,622 |
|
Other Current Assets
|
5,161,715 |
9,118,236 |
866,830 |
|
|
|
|
|
|
Total Current Assets
|
307,431,815 |
540,964,697 |
470,309,180 |
|
Fixed Assets |
584,436,407 |
460,684,993 |
346,925,702 |
|
Intangible Assets |
370,530 |
373,123 |
44,520 |
|
Deferred Expenses |
993,757 |
3,701,902 |
1,776,868 |
|
Other Non-current Assets |
8,768,840 |
663,780 |
660,815 |
|
Total Assets |
902,001,349 |
1,006,388,495 |
819,717,085 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2011 |
2010 |
2009 [Adjusted] |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institutions |
211,833,362 |
162,800,000 |
60,898,270 |
|
Trade Accounts & Other Payable
|
125,753,366 |
309,821,376 |
286,909,078 |
|
Current Portion of
Long-term Loan |
13,320,000 |
9,490,500 |
- |
|
Advance Income from Customers |
5,665,617 |
15,150,119 |
14,980,776 |
|
Accrued Expenses |
35,365,339 |
49,463,721 |
39,793,638 |
|
Accrued Dividend |
- |
- |
900,410 |
|
Other Current Liabilities |
5,504,354 |
3,114,053 |
2,953,966 |
|
|
|
|
|
|
Total Current Liabilities |
397,442,038 |
549,839,769 |
406,436,138 |
|
Long-term Loan - Net of Current Portion |
1,860,000 |
19,009,500 |
- |
|
Reserve for Long-term
Employee Benefits |
502,019 |
345,877 |
247,541 |
|
Total Liabilities |
399,804,057 |
569,195,146 |
406,683,679 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 4
par value authorized, issued
and fully paid share
capital 77,000,000 shares |
308,000,000 |
308,000,000 |
308,000,000 |
|
|
|
|
|
|
Capital Paid |
308,000,000 |
308,000,000 |
308,000,000 |
|
Surplus on Assets
Appraisal |
- |
- |
99,572,613 |
|
Retained Earnings: Appropriated for Statutory Reserve |
12,800,000 |
10,800,000 |
4,000,000 |
|
Unappropriated |
36,422,828 |
33,359,097 |
1,460,793 |
|
Other Components of
Shareholders’ Equity |
144,974,464 |
85,034,252 |
- |
|
Total Shareholders' Equity |
502,197,292 |
437,193,349 |
413,033,406 |
|
Total Liabilities & Shareholders'
Equity |
902,001,349 |
1,006,388,495 |
819,717,085 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 [Adjusted] |
2009 [Adjusted] |
|
|
|
|
|
|
Sales Income |
1,808,615,430 |
2,126,611,798 |
1,451,885,264 |
|
Other Income |
19,749,960 |
51,775,568 |
20,219,207 |
|
Total Revenues |
1,828,365,390 |
2,178,387,366 |
1,472,104,471 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,730,201,923 |
1,971,392,253 |
1,205,467,033 |
|
Selling Expenses |
27,437,622 |
26,997,048 |
19,508,759 |
|
Administrative Expenses |
29,746,663 |
54,376,112 |
22,554,548 |
|
Management’s Remuneration |
- |
- |
18,640,000 |
|
Total Expenses |
1,787,386,208 |
2,052,765,413 |
1,266,170,340 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost |
40,979,182 |
125,621,953 |
205,934,131 |
|
Financial Costs |
[11,953,813] |
[5,212,010] |
[1,536,515] |
|
|
|
|
|
|
Net Profit / [Loss] |
29,025,369 |
120,409,943 |
204,397,616 |
|
Gain / [Loss] from Assets Appraisal |
74,478,574 |
- |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
103,503,943 |
120,409,943 |
204,397,616 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.77 |
0.98 |
1.16 |
|
QUICK RATIO |
TIMES |
0.45 |
0.48 |
0.50 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.09 |
4.62 |
4.19 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.01 |
2.11 |
1.77 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
25.63 |
46.95 |
75.87 |
|
INVENTORY TURNOVER |
TIMES |
14.24 |
7.77 |
4.81 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
18.88 |
40.27 |
47.18 |
|
RECEIVABLES TURNOVER |
TIMES |
19.33 |
9.06 |
7.74 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
26.53 |
57.36 |
86.87 |
|
CASH CONVERSION CYCLE |
DAYS |
17.98 |
29.85 |
36.17 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
95.66 |
92.70 |
83.03 |
|
SELLING & ADMINISTRATION |
% |
3.16 |
3.83 |
2.90 |
|
INTEREST |
% |
0.66 |
0.25 |
0.11 |
|
GROSS PROFIT MARGIN |
% |
5.43 |
9.73 |
18.36 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.27 |
5.91 |
14.18 |
|
NET PROFIT MARGIN |
% |
1.60 |
5.66 |
14.08 |
|
RETURN ON EQUITY |
% |
5.78 |
27.54 |
49.49 |
|
RETURN ON ASSET |
% |
3.22 |
11.96 |
24.94 |
|
EARNING PER SHARE |
BAHT |
0.38 |
1.56 |
2.65 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.44 |
0.57 |
0.50 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.80 |
1.30 |
0.98 |
|
TIME INTEREST EARNED |
TIMES |
3.43 |
24.10 |
134.03 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(14.95) |
46.47 |
|
|
OPERATING PROFIT |
% |
(67.38) |
(39.00) |
|
|
NET PROFIT |
% |
(75.89) |
(41.09) |
|
|
FIXED ASSETS |
% |
26.86 |
32.79 |
|
|
TOTAL ASSETS |
% |
(10.37) |
22.77 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -14.95%. Turnover has decreased from THB 2,126,611,798.00
in 2010 to THB 1,808,615,430.00 in 2011. While net profit has decreased from
THB 120,409,943.00 in 2010 to THB 29,025,369.00 in 2011. And total assets has
decreased from THB 1,006,388,495.00 in 2010 to THB 902,001,349.00 in 2011.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
5.43 |
Deteriorated |
Industrial Average |
14.31 |
|
Net Profit Margin |
1.60 |
Deteriorated |
Industrial Average |
4.51 |
|
Return on Assets |
3.22 |
Deteriorated |
Industrial Average |
6.56 |
|
Return on Equity |
5.78 |
Deteriorated |
Industrial Average |
11.99 |
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 5.43%. 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 1.6%. 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 3.22%.
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 5.78%.
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 |
0.77 |
Risky |
Industrial Average |
1.82 |
|
Quick Ratio |
0.45 |
|
|
|
|
Cash Conversion Cycle |
17.98 |
|
|
|
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 0.77 times in 2011, decreased from 0.98 times, then the company may not be
efficiently using its current assets. 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 0.45 times in 2011,
decreased from 0.48 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 18 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.44 |
Acceptable |
Industrial Average |
0.40 |
|
Debt to Equity Ratio |
0.80 |
Impressive |
Industrial Average |
0.74 |
|
Times Interest Earned |
3.43 |
Deteriorated |
Industrial Average |
8.70 |
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 3.43 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 0.44 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.09 |
Satisfactory |
Industrial Average |
3.25 |
|
Total Assets Turnover |
2.01 |
Impressive |
Industrial Average |
1.44 |
|
Inventory Conversion Period |
25.63 |
|
|
|
|
Inventory Turnover |
14.24 |
Impressive |
Industrial Average |
6.65 |
|
Receivables Conversion Period |
18.88 |
|
|
|
|
Receivables Turnover |
19.33 |
Impressive |
Industrial Average |
5.60 |
|
Payables Conversion Period |
26.53 |
|
|
|
The company's Account Receivable Ratio is calculated as 19.33 and 9.06
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 increased from 2010. This would suggest the company had good performance
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 47 days at the
end of 2010 to 26 days at the end of 2011. This represents a positive trend.
And Inventory turnover has increased from 7.77 times in year 2010 to 14.24
times in year 2011.
The company's Total Asset Turnover is calculated as 2.01 times and 2.11
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.54.43 |
|
UK Pound |
1 |
Rs.83.20 |
|
Euro |
1 |
Rs.71.91 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.