MIRA
INFORM REPORT
|
Report Date : |
07.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
MANDARIN SPINNING INDUSTRY COMPANY LIMITED |
|
|
|
|
Registered Office : |
6th - 7th Floor, Sahawong Building, 10, 12, 14-16 Rongpim Lane, Yawaraj Road, Chakrawad, Samphantawong, Bangkok 10100 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
09.01.1978 |
|
|
|
|
Com. Reg. No.: |
0105521000436 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer,
Exporter & Distributor of Textile |
|
|
|
|
No. of Employees : |
800 |
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 : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
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
MANDARIN
SPINNING INDUSTRY COMPANY
LIMITED
SUMMARY
BUSINESS
ADDRESS : 6th - 7th FLOOR,
SAHAWONG BUILDING,
10, 12, 14-16
RONGPIM LANE,
YAWARAJ ROAD,
CHAKRAWAD,
SAMPHANTAWONG, BANGKOK
10100
TELEPHONE : [66] 2622-5337-42
FAX :
[66] 2225-4576,
2222-4950
E-MAIL
ADDRESS : mandarin@bkbblife.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1978
REGISTRATION
NO. : 0105521000436 [Former: 43/2521]
TAX
ID NO. : 3101195487
CAPITAL REGISTERED : BHT. 400,000,000
CAPITAL PAID-UP : BHT.
400,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SOMSONG WONGSIRIKUL, THAI
PRESIDENT
NO.
OF STAFF : 800
LINES
OF BUSINESS : TEXTILE
MANUFACTURER, EXPORTER
& DISTRIBUTOR
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
January 9, 1978
as a private
limited company under
the name style
MANDARIN SPINNING INDUSTRY
COMPANY LIMITED, by Thai
Group, Wongsirikul Family,
in order to
manufacture fabric and
yarn products for
both domestic and
international markets. It
currently employs approximate
800 staff.
The subject’s registered
address was initially
located at 177
Metro Building, Rajawong
Rd., Chakrawad, Samphantawong, Bangkok
10100.
On August 29, 1983, it was relocated to 254-256 Yaowaraj Rd., Chakrawad, Samphantawong, Bangkok
10100.
Since May 24,
1996, the subject’s
registered address has
been moved to 6th - 7th Floor,
Sahawong Building, 10, 12,
14-16 Rongpim Lane,
Yawaraj Rd., Chakrawad,
Samphantawong, Bangkok 10100,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Somsong Wongsirikul |
[x] |
Thai |
72 |
|
Mr. Somkiat Wongsirikul |
[x] |
Thai |
61 |
|
Mr. Sompol Wongsirikul |
[x] |
Thai |
54 |
|
Mr. Somsak Wongsirikul |
[x] |
Thai |
58 |
|
Mr. Somboon Wongsirikul |
|
Thai |
75 |
|
Mr. Viwat Sakuntantimetha |
[x] |
Thai |
86 |
|
Mr. Boonchai Sakuntantimetha |
|
Thai |
61 |
|
Mr. Visith Sakuntantimetha |
|
Thai |
75 |
AUTHORIZED PERSON
Two of mentioned
directors [x] can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Somsong Wongsirikul
is the President.
He is Thai
nationality with the
age of 72
years old.
Mr. Somkiat Wongsirikul
is the Managing
Director.
He is Thai
nationality with the
age of 61
years old.
Mr. Arkom Sakuntantimetha is
the Export Manager.
He is Thai
nationality.
Mr. Boonchai Sakuntantimetha is
the Factory Manager.
He is Thai
nationality with the
age of 61
years old.
Ms. Piradee Wongsirikul
is the Marketing
Manager.
She is Thai
nationality.
Mr. Somchai Saranrithiwong is
the Sales Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activities
are manufacturer and
contractor of textile,
specialized in spun
yarns and woven
fabric, according to customer’s
requirement.
Ranges of the
products are as
follows:
- Yarn: 100%
cotton combed yarn,
spandex core spun
yarn, spandex core
twisted yarn and
spun filament-combined yarn.
- Fabric: polyester/viscose, polyester/cotton, polyester/linen, polyester/linen/cotton, polyester/viscose/spandex, polyester/wool/spandex, cotton/spandex and
others.
The subject also provides
textile weaving, dyeing &
finishing, as well
as yarn spinning
services.
PRODUCTION
100,000 tons/year
PURCHASE
Raw material mainly cotton is
purchased from local
suppliers, the remaining
is imported from
India, Japan, Africa,
Germany, Switzerland, Republic
of China and
Australia.
MAJOR SUPPLIERS
|
Company |
Country |
|
Thai Rayon Public
Co., Ltd. |
Thailand |
|
Jongstit Co., Ltd. |
Thailand |
|
Thai Melon Polyester
Public Co., Ltd. |
Thailand |
SALES [LOCAL]
80% of its
products is sold
locally to wholesalers
and manufacturers.
EXPORT [COUNTRY]
20% of its products
is exported to Canada,
Hong Kong, Singapore,
Japan, Taiwan, India,
Australia, U.S.A., France
and United Arab
Emirates.
RELATED/AFFILIATED COMPANY
TJC Garment Co.,
Ltd.
Business Type
: Manufacturer of
garment.
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 cash
or on the
credits term of
30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60-90 days.
Imports are by
L/C at sight or T/T.
Exports are against
L/C at sight
or T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Rajawong Branch : 245-249 Rajawong
Rd., Chakrawad, Samphantawong,
Bangkok 10100]
Kasikornbank Public Co.,
Ltd.
[Suapa Branch : 306
Suapa Rd., Pomprab, Bangkok
10100]
Citibank, NA
[Bangkok Branch :
82 North Sathorn Rd.,
Bangrak, Bangkok 10500]
EMPLOYMENT
The subject employs
approximately 800 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Factory : 17/2
Soi Watpothongbon, Tivanond
Road, Pakkred, Nonthaburi
11120
Tel
: [66] 2584-5802-5,
2583-8301-2, Fax : [66]
2583-9037.
REMARK
MAXIMUM CREDIT SHOULD
BE GRANTED AT US$
1,000,000.
COMMENT
Prices of polyester
had improved in
the past two years
but exports volumes this
year is forecasted
to be on par as
last
year’s level, meanwhile
consumption of textile and yarn
including finishing services
has maintained at
certain level
Overall outlook for
local textile industries
is still due
to there is
strong competition from other
countries like China, India and Vietnam,
which has decreased
the subject’s sales
and services considerably.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 400 million, divided
into 4,000,000 shares
of Bht. 100
each.
The capital was
increased / decreased later as
followings :
Bht. 200,000,000 on
July 6, 2006
Bht. 300,000,000 on
September 7, 2006
Bht.
400,000,000 on August
15, 2008
Bht. 300,000,000 on
August 6, 2009
Bht. 400,000,000 on
November 30, 2009
The latest registered
capital was increased
to Bht. 400,000,000
divided into 4,000,000
shares of Bht.
100 each with
fully paid.
MAIN SHAREHOLDERS : [as of
August 28, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Somsak Wongsirikul Nationality: Thai Address : 10-12 Rongpim
Lane, Yawaraj Rd.,
Chakrawad, Bangkok |
835,000 |
20.875 |
|
Mr. Sompol Wongsirikul Nationality: Thai Address : 10-12 Rongpim
Lane, Yawaraj Rd.,
Chakrawad, Bangkok |
835,000 |
20.875 |
|
Mr. Somsong Wongsirikul Nationality: Thai Address : 989/1 Issraparp
Rd., Bangkokyai, Bangkok |
835,000 |
20.875 |
|
Mr. Somkiat Wongsirikul Nationality: Thai Address : 10-12 Rongpim
Lane, Yawaraj Rd.,
Chakrawad, Bangkok |
835,000 |
20.875 |
|
Mr. Viwat Sakuntantimetha Nationality: Thai Address : 10-12 Rongpim
Lane, Yawaraj Rd., Chakrawad, Bangkok |
237,600 |
5.94 |
|
Mr. Visith Sakuntantimetha Nationality: Thai Address : 1215/12 Patanakarn Rd., Suanluang,
Praves, Bangkok |
105,600 |
2.64 |
|
Mr. Anand Sakuntantimetha Nationality: Thai Address : 1215/12 Patanakarn Rd., Suanluang,
Praves, Bangkok |
52,800 |
1.32 |
|
Mr. Arkom Sakuntantimetha Nationality: Thai Address : 1215/12 Patanakarn Rd., Suanluang,
Praves, Bangkok |
52,800 |
1.32 |
|
Mr. Boonthong Sakuntantimetha Nationality: Thai Address : 693-695 Chakrawad,
Samphantawong, Bangkok |
52,800 |
1.32 |
|
Mr. Boonchai Sakuntantimetha Nationality: Thai Address : 247/33 Bangbuathong-Supanburi Rd.,
Chimplee,
Talingchan, Bangkok |
52,800 |
1.32 |
|
Others |
105,600 |
2.64 |
Total Shareholders : 14
Share Structure [as
at August 28,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
14 |
4,000,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
14 |
4,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Prasarn Hoksoon
No. 4116
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
842,719.13 |
10,258,300.22 |
|
Short-term Investment |
400,000.00 |
400,000.00 |
|
Trade Accounts & Other Receivable |
137,166,589.56 |
156,065,649.04 |
|
Inventories |
478,344,144.76 |
289,914,725.34 |
|
Other Current Assets
|
46,786,786.70 |
44,956,487.50 |
|
|
|
|
|
Total Current Assets
|
663,540,240.15 |
501,595,162.10 |
|
|
|
|
|
Fixed Assets |
114,151,734.74 |
134,973,194.18 |
|
Other Non - current Assets |
4,703,108.17 |
5,639,480.68 |
|
Total Assets |
782,395,083.06 |
642,207,836.96 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Bank Overdraft and Short-term Loan from Financial Institutions |
8,289,282.78 |
- |
|
Trade Accounts & Other
Payable |
60,114,596.31 |
87,867,689.79 |
|
Current Portion of Long-term
Loans |
1,800,000.00 |
- |
|
Short-term Loan |
582,013,567.14 |
433,888,699.66 |
|
Other Current Liabilities |
1,692,584.50 |
2,998,347.23 |
|
|
|
|
|
Total Current Liabilities |
653,910,030.73 |
524,754,736.68 |
|
Long-term Loan |
5,850,000.00 |
- |
|
Employee’s Benefit Obligation |
5,397,885.90 |
- |
|
Non-current Liabilities |
1,304,186.00 |
1,304,186.00 |
|
Total Liabilities |
666,462,102.63 |
526,058,922.68 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 4,000,000 shares |
400,000,000.00 |
400,000,000.00 |
|
|
|
|
|
Capital Paid |
400,000,000.00 |
400,000,000.00 |
|
Retained Earning |
|
|
|
Appropriated for
Statutory Reserve |
83,030.37 |
83,030.37 |
|
Unappropriated |
[284,150,049.94] |
[283,934,116.09] |
|
Total Shareholders' Equity |
115,932,980.43 |
116,148,914.28 |
|
Total Liabilities & Shareholders' Equity |
782,395,083.06 |
642,207,836.96 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
737,972,392.64 |
900,015,617.41 |
|
Other Income |
45,979,198.18 |
46,069,257.70 |
|
Total Revenues |
783,951,590.82 |
946,084,875.11 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
623,071,415.58 |
792,555,198.94 |
|
Selling Expenses |
20,464,167.36 |
18,622,254.45 |
|
Administrative Expenses |
106,933,461.21 |
88,747,253.04 |
|
Other Expenses-Loss on
Exchange Rate |
7,599,440.27 |
- |
|
Total Expenses |
758,068,484.42 |
899,924,706.43 |
|
|
|
|
|
Profit / Loss] before Financial Costs & Income Tax |
25,883,106.40 |
46,160,168.68 |
|
Financial Costs |
[17,840,370.86] |
[14,674,991.09] |
|
|
|
|
|
Profit / [Loss] before Income Tax |
8,042,735.54 |
31,485,177.59 |
|
Income Tax |
- |
- |
|
Net Profit / [Loss] |
8,042,735.54 |
31,485,177.59 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.01 |
0.96 |
|
QUICK RATIO |
TIMES |
0.21 |
0.32 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
6.46 |
6.67 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.94 |
1.40 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
280.22 |
133.52 |
|
INVENTORY TURNOVER |
TIMES |
1.30 |
2.73 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
67.84 |
63.29 |
|
RECEIVABLES TURNOVER |
TIMES |
5.38 |
5.77 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
35.22 |
40.47 |
|
CASH CONVERSION CYCLE |
DAYS |
312.84 |
156.34 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
84.43 |
88.06 |
|
SELLING & ADMINISTRATION |
% |
17.26 |
11.93 |
|
INTEREST |
% |
2.42 |
1.63 |
|
GROSS PROFIT MARGIN |
% |
21.80 |
17.06 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.51 |
5.13 |
|
NET PROFIT MARGIN |
% |
1.09 |
3.50 |
|
RETURN ON EQUITY |
% |
6.94 |
27.11 |
|
RETURN ON ASSET |
% |
1.03 |
4.90 |
|
EARNING PER SHARE |
BAHT |
2.01 |
7.87 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.85 |
0.82 |
|
DEBT TO EQUITY RATIO |
TIMES |
5.75 |
4.53 |
|
TIME INTEREST EARNED |
TIMES |
1.45 |
3.15 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(18.00) |
|
|
OPERATING PROFIT |
% |
(43.93) |
|
|
NET PROFIT |
% |
(74.46) |
|
|
FIXED ASSETS |
% |
(15.43) |
|
|
TOTAL ASSETS |
% |
21.83 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
21.80 |
Impressive |
Industrial
Average |
7.78 |
|
Net Profit Margin |
1.09 |
Impressive |
Industrial
Average |
0.29 |
|
Return on Assets |
1.03 |
Impressive |
Industrial Average |
0.83 |
|
Return on Equity |
6.94 |
Impressive |
Industrial
Average |
1.74 |
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 21.8%. When
compared with the industry average, the ratio of the company was higher, this
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 1.09%, higher figure when
compared with those of its average competitors in the same industry, indicated
that business was an efficient operator
in a dominant position within its industry.
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. Return on Assets ratio is
1.03%, higher figure when compared with those of its average competitors in the
same industry, indicated that business was an efficient profit in a dominant position within its industry.
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. Return on Equity ratio is 6.94%, higher figure when compared
with those of its average competitors in the same industry, indicated that
business was an efficient profit in a
dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY RATIO
|
Current Ratio |
1.01 |
Satisfactory |
Industrial
Average |
1.11 |
|
Quick Ratio |
0.21 |
|
|
|
|
Cash Conversion Cycle |
312.84 |
|
|
|
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 1.01 times in 2011, increased from 0.96 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 0.21 times in 2011,
decreased from 0.32 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 313 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.85 |
Acceptable |
Industrial
Average |
0.55 |
|
Debt to Equity Ratio |
5.75 |
Risky |
Industrial
Average |
1.30 |
|
Times Interest Earned |
1.45 |
Acceptable |
Industrial
Average |
2.03 |
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 1.46 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 0.85 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 |
6.46 |
Impressive |
Industrial
Average |
2.05 |
|
Total Assets Turnover |
0.94 |
Satisfactory |
Industrial
Average |
1.01 |
|
Inventory Conversion Period |
280.22 |
|
|
|
|
Inventory Turnover |
1.30 |
Deteriorated |
Industrial
Average |
2.85 |
|
Receivables Conversion Period |
67.84 |
|
|
|
|
Receivables Turnover |
5.38 |
Satisfactory |
Industrial
Average |
5.52 |
|
Payables Conversion Period |
35.22 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.84 |
|
|
1 |
Rs.88.16 |
|
Euro |
1 |
Rs.71.54 |
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.