MIRA
INFORM REPORT
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Report Date : |
28.02.2013 |
IDENTIFICATION DETAILS
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Name : |
P.T. INDO-RAMA SYNTHETICS Tbk |
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Formerly Known as: |
P.T. INDO-RAMA SYNTHETICS |
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Registered Office : |
Jalan Gajah Mada No. 197-198, Desa Kembang Kuning, Ubrug, Jatiluhur, Purwakarta 41101, West Java |
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Country : |
Indonesia |
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Financials (as on) : |
30.09.2012 |
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Date of Incorporation : |
03.04.1974 |
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Com. Reg. No.: |
No. AHU-36314.AH.01.02.TH.2011 |
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Legal Form : |
Public Listed Company |
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Line of Business : |
Integrated textile Industry Investment Holding |
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No. of Employees : |
6,496 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 (31.03.2012) |
Current Rating (30.06.2012) |
|
Indonesia |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Indonesia - ECONOMIC OVERVIEW
Indonesia, a vast polyglot nation, grew an estimated 6.1% and 6.4% in 2010 and 2011, respectively. The government made economic advances under the first administration of President YUDHOYONO (2004-09), introducing significant reforms in the financial sector, including tax and customs reforms, the use of Treasury bills, and capital market development and supervision. During the global financial crisis, Indonesia outperformed its regional neighbors and joined China and India as the only G20 members posting growth in 2009. The government has promoted fiscally conservative policies, resulting in a debt-to-GDP ratio of less than 25%, a small current account surplus, a fiscal deficit below 2%, and historically low rates of inflation. Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011. Indonesia still struggles with poverty and unemployment, inadequate infrastructure, corruption, a complex regulatory environment, and unequal resource distribution among regions. The government in 2012 faces the ongoing challenge of improving Indonesia's insufficient infrastructure to remove impediments to economic growth, labor unrest over wages, and reducing its fuel subsidy program in the face of rising oil prices.
|
Source : CIA |
Name of Company
P.T. INDO-RAMA SYNTHETICS Tbk
Company Address
Head Office and
Factory I (Polyester and Spun Yarns Division)
Jalan Gajah Mada
No. 197-198
Desa Kembang
Kuning, Ubrug
Jatiluhur, Purwakarta 41101
West Java
Indonesia
Phones - (62-264) 200235, 200845, 202311
Fax - (62-264) 201431
Land Area - 18.5 hectares
Building Area - 15,500 sq. meters
Region - Industrial Zone
Status - Owned
Factory II (Fabric
Division)
Jalan Raya Batujajar Km. 5.5
Batujajar, Bandung, 40561
West Java
Indonesia
Phones - (62-22) 6866610 - 12
Fax - (62-22) 6865395, 6865317
Land Area - 30,000 sq. meters
Building Area - 25,500 sq. meters
Region - Industrial Zone
Status - Owned
Factory III (Spun
Yarns Division)
Jalan Raya Subang Km. 6
Cikumpay, Campaka
Purwakarta, 41181
West Java
Indonesia
Phones - (62-264) 210213, 210520
Fax - (62-264) 210514
Land Area - 400,000 sq. meters
Building Area - 25,000 sq. meters
Region - Industrial Zone
Status - Owned
Corporate Office
Graha Irama, 17th Floor
Jalan H.R. Rasuna Said X-1 Kav. 1 & 2
Jakarta Selatan, 12950
Indonesia
Phones - (62-21) 5261555 (Hunting)
Fax - (62-21) 5261501, 5261502
E-mail - info@indorama.com
Website - http://www.indorama.com
Building Area - 26 storey
Office Space - 2,500 sq. meters
Region - Commercial
Status - Owned
Date of Incorporation
a. 3 April 1974 as P.T. INDO-RAMA SYNTHETICS
b. 2 July 1997 as P.T. INDO-RAMA SYNTHETICS Tbk
Legal Form
P.T. Tbk (Perseroan Terbatas Terbuka) or Public Listed
Company
Company Reg. No.
The Ministry of
Law and Human Rights
- No. Y.A.5/2/14
Dated 3 January 1975
- No.
AHU-17302.AH.01.02.TH.2008
Dated 8 April 2008
- No.
AHU-AH.01.10-16680
Dated 2 October 2009
- No.
AHU-36314.AH.01.02.TH.2011
Dated 20 July 2011
Company Status
Foreign Investment (PMA) Company
Permit by the Government
Department :
The Department of
Finance
NPWP No. 01.001.680.6-054.000
The President of
the Republic of Indonesia
No. B-22/Pres/2/1974
Dated 21 February 1974
The Capital
Investment Coordinating Board
- No. 13/II/PMA/1981
Dated 14 May 1981
- No. 21/II/PMA/1987
Dated 22 April 1987
- No. 34/II/PMA/1987
Dated 20 June 1987
- No. 130/II/PMA/1993
Dated 12 November
2003
- No. 715/III/PMA/2003
Dated 30 June 2003
Related Company
A Member Company of the INDORAMA Group (see attachment)
CAPITAL AND OWNERSHIP
Capital Structure :
Authorized Capital :
US$ 244,849,324.-
Issued Capital :
US$ 160,217,573.-
Paid up Capital :
US$ 160,217,753.-
Shareholders/Owners :
a. P.T. IRAMA INVESTAMA of
Indonesia -
US$ 78,507,263.-
b. HSBC FUNDS SERVICES CLIENTS - US$ 13,106,540.-
c. INDORAMA HOLDINGS (I) PTE,
LTD., Singapore - US$ 3,204,273.-
d. Publics (Foreign and Domestic) - US$
65,399,497.-
BUSINESS ACTIVITIES
Lines of Business :
a. Integrated textile Industry
b. Investment Holding
Production Capacity :
Ubrug Factory
a. Polyester
Cotton & Rayon Yarns
(92,000 unit spindels) - 22,000 tons p.a.
b. Polyester
Staple Fibre Chip
and Filament Yams -
64,000 tons p.a.
c. Grey Fabrics - 12,000,000
mtrs p.a.
d. Nitrogen
Gas -
5,616,000 cu.meter p.a.
e. PET Resins - 78,840
tons p.a.
f. Polyester and Spun Yarn - 84,000 tons p.a.
g. Woven Yarns - 26,560 tons p.a.
h. Dyeing Yarns - 6,000 tons p.a.
i. Spinning Yarns -
4,250 tons p.a.
j. Finished Fabrics - 52,056,000 meters p.a.
k. Special Yarns - 7,800 tons p.a.
Campaka Factory
a. Spun Yarns
(P/C/R/AC) - 26,100 tons p.a.
b. Polyester
Staple Fibre - 10,800 tons p.a.
c. Polyester
Filaments - 36,100 tons p.a.
Bandung Factory
a. Yarns -
8,160 tons p.a
b. Grey
Fabrics - 40,000,000 meters p.a.
c. Textile Fabrics - 39,556,000 meters
p.a.
Total Investment :
a. Equity Capital -
US$ 32.0 million
b. Reinvested Profit -
US$ 54.1 million
c. Loan Capital -
US$ 547.7 million
d. Total Investment -
US$ 634.6 million
Started Operation :
1976
Brand Name :
Indo-Rama Synthetics
Technical Assistance :
None
Number of Employee :
6,496 persons
Marketing Area :
Domestic
(Local) - 65%
Export - 35%
Main Customers :
a. Industrial Textiles
b. Buyers in Singapore, Japan, Australia, Europe Union, the
USA, Middle East etc.
Market Situation :
Very Competitive
Main Competitors :
a. P.T. ASIA PACIFIC FIBERS Tbk
b. P.T. INDONESIA TORAY SYNTHETICS
c. P.T. INDORAMA POLYSTER INDUSTRY INDONESIA
d. P.T. INDORAMA VENTURE INDONESIA
e. P.T. TEIJIN INDONESIA FIBER Tbk
Business Trend :
Growing
BANKER, AUDITOR & LITIGATION
Bankers :
a. P.T. Bank PAN INDONESIA Tbk
Jalan Jend. Sudirman Kav. 55
Jakarta Selatan
Indonesia
b. P.T. Bank INTERNATIONAL INDONESIA Tbk
Plaza BII, Jalan M.H. Thamrin No. 55
Jakarta Pusat
Indonesia
c. BANGKOK Bank
Jalam M.H. Thamrin No. 3
Jakarta Pusat
Indonesia
d. AMERICAN
EXPRESS Bank
Jalan H.R. Rasuna Said Kav. X-5
Jakarta Selatan
Indonesia
Auditor :
Osman Ramli Satrio & Partner
Litigation :
No litigation record in our database
FINANCIAL FIGURE
Annual Sales :
2009 – US$ 489.9 million
2010 – US$ 616.9 million
2011 – US$ 780.5 million
2012 – US$ 573.1 million (as per 30 September)
Net Profit :
2009 – US$ 11.4 million
2010 – US$ 25.9 million
2011 – US$ 9.4
million
2012 – US$ 2.1
million (as per 30 September)
Payment Manner :
Average
Financial Comments :
Satisfactory
KEY EXECUTIVES
Board of Management :
President Director - Mr. Amit Lohia
Directors - a.
Mr. Vishnu Swaroop Baldwa
b. Mr. Arun Taneja
Board of Commissioner :
President Commissioner -
Mr. Sri Prakash Lohia
Vice President Commissioner -
Mrs. Seema Lohia
Commissioners -
a. Mrs. Aarti Lohia
b. Mr. Ir. Imam Sucipto Umar
Signatories :
President Director (Mr. Amit
Lohia) or one of the Directors (Mr. Vishnu Swaroop Baldwa or Mr. Arun Taneja)
which must be approved by Board of Commissioners
CAPABILITIES
Management Capability :
Good
Business Morality :
Good
Credit Risk :
Average
Credit Recommendation :
Credit should be proceeded
with monitor
Proposed Credit Limit :
Small amount –
periodical review
OVERALL PERFORMANCE
P.T. INDO-RAMA
SYNTHETICS Tbk or abbreviated with trading style (P.T. INDR) was established in
April 1974 in Purwakarta (West Java) with an authorized capital of US$ 2,000,000
and an issued capital of US$ 400,000 of which US$ 40,000 was paid up. The
founders and original shareholders of the company were Mr. Lekhoomal Pahoomal
Tolani (an Indonesian businessman of Indian descent), Mr. Budiantoro Hartono
(an indigenous businessman) and RAMATEX Ltd. of Hong Kong. In 1988 the two
local partners withdrew and were replaced by P.T. IRAMA UNGGUL, a national
private company. In early 1990 the original foreign partner pulled out and was
replaced by BROOKGRANGE INTERNATIONAL FINANCE Ltd. of the United Kingdom. In
June 1990 P.T. INDR went public selling 23% of its shares on the Indonesian
Stock Exchange (IEJ).
In July 1997, the
company’s authorized capital was increased to US$ 244,849,324 with the issued
and paid up capital amounting to US$ 160,217,573 and concurently behind its
name the words Tbk (listed company) is added to comply with regulation.
In June 2003, one
of sister companies of P.T. INDR namely P.T. INDORAMA TECHNOLOGIES merged into
P.T. INDO-RAMA SYNTHETICS Tbk (surviving company). The deed of amended
was made by Mr. Sutjipto, SH, a public notary in Jakarta, was approved by the
Ministry of Law and Human Right in its Decision Letter No.
AHU-17302.AH.01.02.TH.2008, dated April 04, 2008. Then according to the latest
revision of notary deed of Mrs. Fathiah Helmi, SH., No. 26 dated 28 August 2009
the board of directors and the board of commissioners reappointed to lead and
run of the company’s operation. The revision of notary documents was approved
by the Ministry of Law and Human Rights in its decision letter No.
AHU-AH.01.10-16680 dated October 2, 2009. As per 30 September 2011 the company latest shareholders are P.T.
IRAMA INVESTAMA (49.00%), HSBC FUND SERVICES CLIENTS (8.18%) HHSBC PRIVATE BANK
SUISSE (5.05%), INDORAMA HOLDINGS (I) PTE, LTD (2.00%) and Publics (35.77%).
Then according to the latest revision of notary documents of Mrs. Fathiah
Helmi, SH., No. 131 dated 28 June 2011 the board of director and the board of
commissioner reappointed to lead and runs of the company’s operation. The deed
of amenments was approved by the Ministry of Law and Human Rights in its
decision letter No. AHU-36314.AH.01.02.TH.2011 dated June 20, 2011. According
to financial statement as per 30 September 2012 the latest composition of its shareholders
has been changed to become P.T. IRAMA INVESTAMA (49.00%), HSBC Fund Services
Clients (8.18%), INDORAMA HOLDINGS (I) PTE, LTD., Singapore (2.00%) and Public
(Domestic & Foreign) of (40.82%).
We note that P.T.
INDO-RAMA SYSNTHETICS Tbk is a member of the INDORAMA Group based in India with
its business network extending to South Asia, Asean and Europe.
P.T. INDO-RAMA
SYNTHETICS Tbk or INDR operates under Foreign Invesment (PMA) facilities issued
by Capital Investment Coordinating Board (BKPM) to deal with integrated
spinning industry with its mill located on an 18.5 hectare landsite in
Purwakarta. In operation since 1976. Initially, the company just managed two
plant located in Kembang Kuning Village, Ubrug, Jatiluhur, Purwakarta, West
Java on a land of 18.5 hectares and at Jalan Raya Batujajar Km. 5.5, Batujajar,
Bandung, West Java. However, since the end 2003 by the merging of its sister
company P.T. INDORAMA TECHNOLOGIES, the company has managed three plants in
which one of which is located at Jalan Raya Subang Km. 6, Cikumpay, Campaka,
Purwakarta, West Java. The three plants has been expanded several times to
icnrease their annual production capacities. P.T. Indo-Rama Synthetics
Tbk (INDR) is engaged mainly in the manufacturing of spun and blended yarns,
polyester filament yarns (including microfilament yarns), polyester staple
fibre, per resin, textile grade chips and polyester fabrics (grey and
finished), acquiring certain investments and generation of power for captive
use. The above plants has absorbed
an investment of US$ 634.6 million coming from owned capital of US$ 32.8
million, reinvested profit of US$ 54.1 million and the rest from loans. Some
65% of the company products is marketed locally and the rest is for export to
the USA, Canada, the UK, Germany, Belgium, Italy, Australia and other Asian
countries.
Besides, P.T.
INDR controls 42% shares of P.T. INDORAMA PETROCHEMICALS engaged in purified
terephthalic acid (PTA) industry; 100% shares of ISIN INTERNATIONAL PTE. LTD.,
based in Singapore dealing with trading; 100% shares of INDORAMA INDUSTRY PTE.
LTD., based in Singapore dealing with investment; and 76.00% shares of JV
INDORAMA KOKAND TEXTILE LLC., Uzbekistant dealing with spun yarns
manufacturing. P.T. INDR is classified as a large size company in the country
dealing with textile industry of which the operation has been running smoothly
in the last three years.
Polyester fiber is the most used synthetic fiber worldwide, with a market share of about 72%. In fact, not only is its production cost reasonably low, but it is also successfully used in many industrial and textile applications, as well as in the automotive industry. For many years, the world market for polyester fiber has enjoyed sustained annual growth rates of 7–9%. However, since mid-2008, consumption has significantly slowed, mainly as a consequence of the global economic recession. In 2008, world consumption of polyester fiber was about 1.8% less than in 2007. However, in 2009, world consumption recovered and was back to the 2007 level again, mainly as a result of Chinese consumption growth. In Europe, North America and Japan in 2008 and 2009, the market decreased by more than 15% annually; however, during the same period, consumption in China increased at a rate of over 4% per year. In the rest of the world, consumption decreases have mostly occurred, although of variable extent from region to region.
The
following pie chart shows world consumption of polyester fibers:
China consumes about 64% of the polyester fiber produced worldwide, principally for textile applications. The country consumes fibers in a chain of textile weaving, dyeing and apparel-making industries, then exports large amounts of finished goods, including apparel, curtains and bedding, around the world. Moreover, since the abolition of textile quotas in 2004, Chinese exports of apparel and other textile products have been increasing very rapidly. Threatened by this large volume of low-cost fabrics entering their countries, many producers in the more economically developed countries have been forced to restructure their businesses. China accounts for over 66% of the global output of polyester fibers, up from only 27% in 2000. This extraordinary increase has led to surplus in the worldwide supply for the past few years.
Indonesia is the 6th largest producer world to polyester with a production capacity of 1.4 million tons per year. Manufacturers of synthetic in Indonesia domestic market oriented, PSF and PFY 90% 65%. The main raw material 100% polyester is the PTA supplied the domestic industry and MEG supplied 30% of the domestic industry, 70% of imports. Caprolactam as raw material Nylon 100% imported. Demand for polyester textile raw materials in the country (Indonesia) is still high because organic textile raw material such as cotton is difficult to grow in Indonesia. So the polyester is still an option for the textile industry in Indonesia.
National Polyester Production,
2007 – 2012
|
Year |
Polyester Staple Fiber (PSF) |
Polyester Filament Yarns (PFY) |
Nylon Yarns (NY) |
|
2007 2008 2009 2010 2011 2012 |
497715 500,670 505,674 515,680 529,700 556,000 |
715,000 670,000 674,000 680,000 700,000 725,000 |
16,360 17,443 18,556 19,740 21,000 32,000 |
Source:
APSyFI, Processed by ICB
According to the financial statement of P.T. INDR audited by a public accountant, total sales turnover of the company in 2009 amounted US$ 489.9 million with a net profit of US$ 11.4 million increased to US$ 616.9 million with a net profit of US$ 25.9 million in 2010 rose to US$ 780.5 million with a net profit of US$ 9.4 million in 2011. As per 30 September 2012 the sales turnover amounted at US$ 573.1 million with a net profit of US$ 2.1 million and projected to go on rising by at least 5% in 2013. The payment habit of 1 to 3 months is running smoothly. The company has never been black listed by Central Bank (Bank Indonesia) and registered at the count for determines cases. We observe that P.T. INDR is supported by the INDORAMA Group, a developing business group with has financially strong and sound behind it. So far, we did not heard that the company having been black listed by the Central Bank (Bank Indonesia). The condense financial statement is shown.
(In Thousand US$)
|
Descriptions |
30 September 2012 |
31 December |
||
|
2011 |
2010 |
2009 |
||
|
A. ASSETS |
|
|
|
|
|
a. Current Assets |
66,1622 |
278,990 |
246,267 |
215,921 |
|
b. Non Current Assets |
379,902 |
394,501 |
319,400 |
329,107 |
|
c. Other Assets |
- |
- |
- |
- |
|
TOTAL ASSETS = TOTAL LIABILITIES & EQUITY |
646,064 |
673,490 |
565,667 |
545,028 |
|
B. LIABILITIES
&STOCKHOLDERS EQUITY |
|
|
|
|
|
a. Current Liabilities |
228,883 |
252,548 |
226,325 |
193,106 |
|
b. Non Current Liabilities |
121,624 |
125,263 |
50,769 |
96,672 |
|
c. Stockholders Equity : -
Paid Up Capital -
Additional Paid Up Capital -
Retained Earnings Total Stock holders
Equity |
160,217 917 130,816 295,556 |
160,217 917 130,520 295,679 |
160,217 917 124,209 288,573 |
160,217 917 94,079 255,250 |
|
C. INCOME STATEMENT |
|
|
|
|
|
a. Sales Net |
573,108 |
780,555 |
616,938 |
489,948 |
|
b. Gross Profit |
36,826 |
41,638 |
63,081 |
31,243 |
|
c. Net Profit |
2,093 |
9,417 |
25,877 |
11,361 |
Notes: 31 December 2009, and 2010,
2011 Audited by Osman Bing Satrio
30 September 2012 un audited
The management of P.T. INDR is
led by Mr. Amit Lohia (39), an Indian businessman with broad experienced in the
above business. He has a bachelor degree in economics and finance from the
prestigious Wharton School of Business at the University of Pennsylvania in
1995. He has been a senior executive in the company since 1996 and worked in
various roles. In his daily activities, he is assisted by Mr. Vishnu Swarop
Baldwa and Mr. Arun Taneja as directors. However the primemover is Mr. Sri
Prakash Lohia (61), an Indian businessman with broad experienced in the above
business. Mr. S. P. Lohia has a Bachelor of Commerce degree from the University
of Delhi in 1971. He founded P.T. Indorama Synthetics along with his father,
Mr. M.L. Lohia, in 1976. He has 36 years of experience in the industry and sits
on the boards of various companies of the Indorama Group. We observed that management’s
reputation in said business is sufficiently fairly good. The company has had
wide relation in the realm of the private businessmen within and outside the
country. So far, we did not hear that the company’s management involved in a
dirty business practice or detrimental cases that settled in the country. The
company’s litigation record is clean and it has not registered with the black
list of Bank of Indonesia. P.T. INDO-RAMA SYNTHETICS Tbk is sufficiently fairly
good for business transaction.
Attachment:
List of the
INDORAMA Group Members
1.
ASHOK
TEXTILE Industries, Ltd., Nepal (Textile Industry)
2.
AUTUM
INVESTMENT Ltd., Hong Kong (Holding Company)
3.
BANGADUA
PETROLEUM, P.T. (Oil & Natural Gas Exploration)
4.
BROOKGRANGE
INTERNATIONAL FINANCE LTD., The U.K. (Financing Service)
5.
INDOMULIA
MITRAJAYA, P.T. (Shrimp Culture)
6. INDORAMA CHEMICALS (Thailand) Ltd.,
Thailand (Chemicals Manufacturing)
7. INDORAMA NETHERLANDS BV.,
(Investment Holding)
8. INDORAMA NETHERLANDS COOPERATIEF
U.A. (Investment Holding)
9. INDORAMA PETROCHEMICALS, P.T.
(Purified Terephthalic Acid Manufaccturing)
10. INDORAMA POLYCHEM INDONESIA, P.T.
(Polymerization Resin Industry)
11. INDORAMA POLYESTER INDUSTRIES
INDONESIA, P.T. (Polyester Filament Yarn Industry)
12. INDORAMA PROJECTS AND SERVICES Ltd.,
India (Consulting and Investment Holding)
13. INDORAMA SYNTHETICS (India) Ltd.,
India (Chemicals Manufacturing)
14. INDORAMA SYNTHETICS Tbk, P.T.
(Spinning Mills and Investment Holding)
15. INDORAMA TRADE AND DEVELOPMENT
SERVICES, P.T. (General Trading)
16. INDORAMA VENTURES INDONESIA, P.T.
(Polyester Filament Yarn and Polyester Resin Industry)
17. INDORAMA VENTURES PUBLIC LISTED
LTD,. Thailand (Polyester Filament Yarn Industry)
- INDOSPECT
ASIA PETROLEUM BANGADUA, P.T. (Oil and Gas Exploration and Production)
19.
IRAMA
DINAMIKA LATEX, P.T. (Latex Goods Manufacturing)
20.
IRAMA
UNGGUL, P.T. (Trading and Investment Holding)
21.
JAKARTA
MAJU PUSAKA, P.T. (Trading and Suppliers)
22.
KARYA
MITRA INDORAMA, P.T. (Health Clinic Services in Purwakarta)
23.
LOHIA
INDUSTRIES PVT.,LTD., India (Investment Holding)
24.
MITRABANGUN
GRIYA, P.T. (Office Block Rental Management)
25.
RAMATEX
Ltd., (Hong Kong), (Investment Holding)
26.
SK
WAHANA INTERNATIONAL, P.T. (Textile Industry)
27.
THONBURI
LACE Co. ,Ltd., Thailand (Investment Holding)
28.
Etc.
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.84 |
|
UK Pound |
1 |
Rs.81.24 |
|
Euro |
1 |
Rs.70.39 |
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.