MIRA
INFORM REPORT
|
Report Date : |
02.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
UNITED DAIRY FOODS COMPANY LIMITED |
|
|
|
|
Registered Office : |
879 Soi Ruamruedee [Buakerd], Bangna-Trad Road, Bangna, Bangkok 10260 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
30.06.2012 |
|
|
|
|
Date of Incorporation : |
07.07.1972 |
|
|
|
|
Com. Reg. No.: |
0105515004328 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of Food Ingredient Products |
|
|
|
|
No. of Employees : |
400 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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
UNITED
DAIRY FOODS COMPANY
LIMITED
SUMMARY
BUSINESS
ADDRESS : 3059-3059/1 SUKHUMVIT
ROAD, BANGCHAK,
PRAKANONG, BANGKOK
10260, THAILAND
TELEPHONE : [66] 2332-8040-9,
2331-6968-71, 2747-5191-2
FAX : [66] 2331-6891,
2331-6911, 2747-5193
E-MAIL
ADDRESS : customerservice@kimchuagroup.com
REGISTRATION
ADDRESS : 879
SOI RUAMRUEDEE [BUAKERD],
BANGNA-TRAD ROAD,
BANGNA,
BANGKOK 10260
ESTABLISHED
: 1972
REGISTRATION
NO. : 0105515004328
TAX
ID NO. : 3101091434
CAPITAL REGISTERED : BHT. 300,000,000
CAPITAL PAID-UP : BHT.
300,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : JUNE
30
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. VIJAI VIPAWATANAKUL, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 400
LINES
OF BUSINESS : FOOD
INGREDIENT PRODUCTS
MANUFACTURER
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 July
7, 1972 as
a private limited
company under the
name style UNITED DAIRY FOODS
COMPANY LIMITED, by Thai
groups, in order to manufacture dairy
products for domestic market. It
currently employs approximate
400 staff.
The subject’s registered
address is 879
Soi Ruamruedee [Buakerd],
Bangna-Trad Rd., Bangna,
Bangkok 10260, while
the current headquarter
address is located
at 3059-3059/1 Sukhumvit
Rd., Bangchak, Prakanong,
Bangkok 10260. It
is also a
headquarter address of
The Kim Chua
Group of companies.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Vijai Vipawatanakul |
|
Thai |
83 |
|
Mr. Tong Thiranusornkij |
|
Thai |
69 |
|
Mr. Damrong Vipawatanakul |
|
Thai |
52 |
|
Mr. Thawat Thiranusornkij |
|
Thai |
44 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Vijai Vipawatanakul is
the Managing Director.
He is Thai
nationality with the
age of 83 years
old.
Mr. Tong Thiranusornkij is
the Deputy Managing
Director.
He is Thai
nationality with the age
of 69 years
old.
Mr. Thawat Thiranusornkij the
Deputy Managing Director
and Research &
Development Manager.
He is Thai
nationality with the age
of 44 years
old.
Mrs. Srisukhon Sakkhamchorn is
the Production Manager.
She is Thai
nationality.
Ms. Lavana Thiranusornkij is
the Quality Control
Manager.
She is Thai
nationality.
Mr. Damrongkij Vipawatanakul is
the Factory Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
and distributor various
kinds of foods,
food ingredients and
dairy products such
as cookie, butter & spread, margarine & shortening, cheese, chocolates [flour/premix], jam,
jelly whipping cream, bakery
ingredient & improver, gelatin, honey,
syrups and frozen
dough.
MAJOR BRANDS
“IMPERIAL”, “AMBASSADOR”, “DIAMOND”,
“UNI-PUFFS”, “CROWN” “ALLOWRIE”,
“FINGERS” and “BUGGEMAN”
PURCHASE
100% of raw
materials is purchased
from local supplies.
MAJOR SUPPLIER
Kim Chua Group
Co., Ltd. : Thailand
SALES [LOCAL]
100%
of the products
is sold locally by Kim
Chua Group Co., Ltd., the
subject’s related company.
SUBSIDIARIES &
AFFILIATED COMPANIES
Kim Chua Group
Co., Ltd.
Business Type: Importer of
raw materials and
distributor of dairy
product
Imperial General Foods
Industry Co., Ltd.
Business Type: Manufacturer of
cookies
United Dairy Farms
Co., Ltd.
Business Type: Distributor of
“Imperial” milk product
Imperial Bakery Equipment Co., Ltd.
Business Type: Importer and
distributor of bakery
equipment
Imperial Specialty Foods
Co., Ltd.
Business Type: Manufacturer and
distributor of beverage
products
Imperial Bakery and
Food Culinary School
Business Type: Bakery and
food culinary institute
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 credit term
of 60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
BANKING
Bangkok
Bank Public Co.,
Ltd.
Bank
of Ayudhya Public
Co., Ltd.
[Head Office
: 1222 Rama
3 Rd., Bangpongpang, Yannawa, Bangkok 10120]
EMPLOYMENT
The subject employs
approximately 400 staff.
LOCATION DETAILS
The premise is owned for
operating administrative office in a 5 storey building at the
heading address. Premise
is located in
commercial/residential area.
Factory I and warehouse are
located at 879
Soi Ruamruedee, Bangna-Trad
Road, Bangna, Bangkok
10260, Thailand. Tel: [66] 2747-5191-2
Fax : [66]
2747-5193.
Factory II is
located at 228
Moo 11, T. Bangpleeyai, A. Bangplee,
Samutprakarn 10540.
REMARK
MAXIMUM CREDIT SHOULD
BE GRANTED AT
US$ 5,000,000.
COMMENT
Subject
had strong business
performance in the past year. Strong
consumption in domestic market
has risen demand
of the products.
Moreover continuous growing
of food and bakery industries has
witnessed an upward
trend of food
ingredient products. Overall economic
conditions have subsequently improved,
and consumption of
food products has
risen significantly. Subject
has an excellent
business outlook.
FINANCIAL INFORMATION
The capital was
registered at Bht. 4,000,000 divided
into 1,000 shares of
Bht. 4,000 each.
The capital was
increased later as
followings:
Bht. 8,000,000
on July 27, 1981
Bht. 20,000,000
on September 5,
1982
Bht. 70,000,000
on September 5,
1997
Bht. 300,000,000
on June 12,
2007
The latest registered
capital was increased into Bht. 300,000,000 divided into 75,000
shares of Bht.
4,000 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE : [as
at October 31,
2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Imperial General Foods
Industry Co., Ltd. Nationality: Thai Address : 3059-3059/1-3 Sukhumvit
Rd., Bangchak,
Prakanong, Bangkok |
27,500 |
36.68 |
|
Kim Chua Group
Co., Ltd. Nationality: Thai Address : 3059-3059/1-3 Sukhumvit
Rd., Bangchak,
Prakanong, Bangkok |
27,500 |
36.68 |
|
United Dairy Farms
Co., Ltd. Nationality: Thai Address : 3059-3059/1-3 Sukhumvit
Rd., Bangchak,
Prakanong, Bangkok |
2,500 |
3.34 |
|
Mr. Vijai Vipawatanakul Nationality: Thai Address : 958/14
Moo 12, Sukhumvit
Rd., Bangna, Bangkok |
1,750 |
2.33 |
|
Mr. Tong Thiranusornkij Nationality: Thai Address : 81
Soi Chalermprakiat R.9, Soi
62 Yaek 6, Dokmai, Prawet,
Bangkok |
1,750 |
2.33 |
|
Mr. Damrong Vipawatanakul Nationality: Thai Address : 3059-3059/1-3 Sukhumvit
Rd., Bangchak,
Prakanong, Bangkok |
1,750 |
2.33 |
|
Mr. Thawat Thiranusornkij Nationality: Thai Address : 147
Soi Chalermprakiat R.9, Soi
62 Yaek 6,
Dokmai, Prawet, Bangkok |
1,750 |
2.33 |
|
|
|
|
|
Mrs. Suwanna Mahakarn Nationality: Thai Address : 369
Soi Bangna-Trad 27,
Bangna, Bangkok |
1,750 |
2.33 |
|
Mr. Damrongchai Vipawatanakul Nationality: Thai Address : 100/122
Moo 11, Bangpla,
Bangplee,
Samutprakarn |
1,750 |
2.33 |
|
Mr. Damrongkij Vipawatanakij Nationality: Thai Address : 958/14
Moo 12, Sukhumvit
Rd., Bangna, Bangkok |
1,750 |
2.33 |
|
Mr. Monsan Thiranusornkij Nationality: Thai Address : 145 Soi Chalermprakiat R.9, Soi
62 Yaek 6,
Dokmai, Prawet, Bangkok |
1,750 |
2.33 |
|
Mrs. Pojanant Suksanpanthep Nationality: Thai Address : 69/135
Moo 3, Dokmai,
Prawet, Bangkok |
1,750 |
2.33 |
|
Mr. Pumint Thiranusornkij Nationality: Thai Address : 149 Soi
Chalermprakiat R.9, Soi 62
Yaek 6,
Dokmai, Prawet, Bangkok |
1,750 |
2.33 |
Total Shareholders : 13
Share Structure [as
at October 31,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
13 |
75,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
13 |
75,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Suwanna Sermsawatsri
No. 421
BALANCE SHEET [BAHT]
The
latest financial figures
published for June
30, 2012 &
2011 were:
ASSETS
|
Current Assets |
2012 |
2011 |
|
|
|
|
|
Cash and Cash Equivalents
|
54,284,127.16 |
11,969,672.99 |
|
Trade Accounts & Other
Receivable |
619,704,428.33 |
578,005,802.85 |
|
Inventories |
82,137,128.30 |
73,211,464.24 |
|
Other Current Assets |
37,350,234.47 |
17,702,270.19 |
|
Total Current Assets
|
793,475,918.26 |
680,889,210.27 |
|
|
|
|
|
Long-term Lending |
230,000,000.00 |
230,000,000.00 |
|
Fixed Assets |
888,424,673.66 |
511,315,281.53 |
|
Intangible Assets |
2,328,858.74 |
1,286,301.37 |
|
Other Non-current Assets
|
15,000.00 |
73,665.07 |
|
Total Assets |
1,914,244,450.66 |
1,423,564,458.24 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
|
|
|
|
|
Bank Overdraft from
Financial Institutions |
23,427,624.17 |
5,170,246.88 |
|
Short-term Loan from Financial Institutions |
298,944,000.00 |
201,944,000.00 |
|
Trade Accounts & Other Payable |
816,785,320.58 |
600,682,302.64 |
|
Current Portion of
Long-term Loan |
84,280,000.00 |
78,095,612.32 |
|
Accrued Income Tax |
13,189,550.78 |
9,677,422.02 |
|
Other Current Liabilities |
2,794,652.00 |
3,267,941.01 |
|
Total Current Liabilities |
1,239,421,147.53 |
898,837,524.87 |
|
Long-term Loan, Net
of Current Portion |
339,351,253.29 |
260,458,734.85 |
|
Other Long-term Loan |
24,000,000.00 |
- |
|
Total Liabilities |
1,602,772,400.82 |
1,159,296,259.72 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 4,000
par value authorized, issued
and fully paid share
capital 75,000 shares |
300,000,000.00 |
300,000,000.00 |
|
Capital Paid |
300,000,000.00 |
300,000,000.00 |
|
Surplus on Revaluation
of Assets |
132,907,392.54 |
132,907,392.54 |
|
Retained Earning -
Unappropriated |
[121,435,342.70] |
[168,639,194.02] |
|
Total Shareholders' Equity |
311,472,049.84 |
264,268,198.52 |
|
Total Liabilities & Shareholders' Equity |
1,914,244,450.66 |
1,423,564,458.24 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
|
|
|
|
|
Sales |
2,140,604,756.55 |
1,878,006,269.29 |
|
Other Income |
12,388,001.08 |
11,763,510.63 |
|
Total Revenues |
2,152,992,757.63 |
1,889,769,779.92 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,966,227,022.47 |
1,757,410,261.71 |
|
Selling Expenses |
47,032,143.53 |
30,769,050.81 |
|
Administrative Expenses |
1,626,278.14 |
486,397.18 |
|
Other Expenses |
10,134,555.29 |
1,371,166.42 |
|
Total Expenses |
2,025,019,999.43 |
1,790,036,876.12 |
|
Profit / [Loss] before Financial Cost & Income Tax |
127,972,758.20 |
99,732,903.80 |
|
Financial Cost |
[59,196,456.50] |
[43,187,256.04] |
|
Profit / [Loss] before Income Tax |
68,776,301.70 |
56,545,647.76 |
|
Income Tax |
[21,572,450.38] |
[17,296,808.61] |
|
Net Profit / [Loss] |
47,203,851.32 |
39,248,839.15 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.64 |
0.76 |
|
QUICK RATIO |
TIMES |
0.54 |
0.66 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.41 |
3.67 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.12 |
1.32 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
15.25 |
15.21 |
|
INVENTORY TURNOVER |
TIMES |
23.94 |
24.00 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
105.67 |
112.34 |
|
RECEIVABLES TURNOVER |
TIMES |
3.45 |
3.25 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
151.62 |
124.76 |
|
CASH CONVERSION CYCLE |
DAYS |
(30.71) |
2.79 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
91.85 |
93.58 |
|
SELLING & ADMINISTRATION |
% |
2.27 |
1.66 |
|
INTEREST |
% |
2.77 |
2.30 |
|
GROSS PROFIT MARGIN |
% |
8.72 |
7.05 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.98 |
5.31 |
|
NET PROFIT MARGIN |
% |
2.21 |
2.09 |
|
RETURN ON EQUITY |
% |
15.16 |
14.85 |
|
RETURN ON ASSET |
% |
2.47 |
2.76 |
|
EARNING PER SHARE |
BAHT |
629.38 |
523.32 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.84 |
0.81 |
|
DEBT TO EQUITY RATIO |
TIMES |
5.15 |
4.39 |
|
TIME INTEREST EARNED |
TIMES |
2.16 |
2.31 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
13.98 |
|
|
OPERATING PROFIT |
% |
28.32 |
|
|
NET PROFIT |
% |
20.27 |
|
|
FIXED ASSETS |
% |
73.75 |
|
|
TOTAL ASSETS |
% |
34.47 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.72 |
Deteriorated |
Industrial
Average |
24.63 |
|
Net Profit Margin |
2.21 |
Deteriorated |
Industrial
Average |
12.56 |
|
Return on Assets |
2.47 |
Deteriorated |
Industrial
Average |
17.34 |
|
Return on Equity |
15.16 |
Acceptable |
Industrial
Average |
25.35 |
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 8.72%. When
compared with the industry average, the ratio of the company was lower,
indicated that company was originated from the
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 2.21%.
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 2.47%.
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 15.16%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Downtrend
LIQUIDITY RATIO
|
Current Ratio |
0.64 |
Risky |
Industrial
Average |
1.73 |
|
Quick Ratio |
0.54 |
|
|
|
|
Cash Conversion Cycle |
(30.71) |
|
|
|
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 0.64 times in 2012, decreased from 0.76 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 0.54 times in 2012,
decreased from 0.66 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 -31 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.84 |
Acceptable |
Industrial
Average |
0.25 |
|
Debt to Equity Ratio |
5.15 |
Risky |
Industrial
Average |
(2.25) |
|
Times Interest Earned |
2.16 |
Deteriorated |
Industrial
Average |
18.18 |
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 2.17 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 0.84 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 Downtrend
Times Interest Earned Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.41 |
Impressive |
Industrial Average |
0.53 |
|
Total Assets Turnover |
1.12 |
Impressive |
Industrial Average |
0.77 |
|
Inventory Conversion Period |
15.25 |
|
|
|
|
Inventory Turnover |
23.94 |
Impressive |
Industrial Average |
9.79 |
|
Receivables Conversion Period |
105.67 |
|
|
|
|
Receivables Turnover |
3.45 |
Impressive |
Industrial Average |
2.43 |
|
Payables Conversion Period |
151.62 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.83 |
|
|
1 |
Rs.89.22 |
|
Euro |
1 |
Rs.72.48 |
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.