MIRA
INFORM REPORT
|
Report Date : |
11.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
LOHATHAI STAINLESS CO., LTD. |
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|
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|
Registered Office : |
1570/3 Pracharat 1 Road, Bangsue, Bangkok 10800 |
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|
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Country : |
Thailand |
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|
|
|
Financials (as on) : |
29.02.2012 |
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|
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Date of Incorporation : |
12.05.1995 |
|
|
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Com. Reg. No.: |
0105538057509 [Former : [1] 1272/2538] |
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Legal Form : |
Private Limited Company |
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|
Line of Business : |
Distributor and Exporter of Stainless Steel
Scrap |
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|
|
|
No. of Employees : |
100 |
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 |
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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) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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
LOHATHAI STAINLESS
CO., LTD.
SUMMARY
BUSINESS ADDRESS : 1570/3 PRACHARAT
1 ROAD,
BANGSUE,
BANGKOK 10800
TELEPHONE : [66] 2913-2197-9,
2585-2650, 2585-9811
FAX : [66] 2587-5420
E-MAIL ADDRESS : sales@lts.co.th
thanawat@lts.co.th
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1995
REGISTRATION NO. : 0105538057509 [Former :
[1] 1272/2538]
TAX ID NO. : 3011574478
CAPITAL REGISTERED : BHT.
200,000,000
CAPITAL PAID-UP : BHT.
200,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : FEBRUARY 28
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
DAMRONG KENGRUNGRUANGCHAI, THAI
MANAGING DIRECTOR
NO. OF STAFF : 100
LINES OF BUSINESS : STAINLESS STEEL
SCRAP
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
established on May
12, 1995 as
a private limited
company under the
name style “LOHATHAI
STAINLESS CO., LTD.”
by Thai groups,
with the initial
business objective as
a manufacturer, importer
and distributor of
stainless steel products
to local market.
At present, its
business becomes a
distributor and exporter
of metal scrap. It currently
employs approximately 100
staff.
The subject’s registered
address is 1570/3 Pracharat 1 Rd., Bangsue,
Bangkok 10800, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Damrong Kengrungruangchai |
|
Thai |
62 |
|
Mr. Boriboon Kengrungruangchai |
|
Thai |
35 |
|
Ms. Suwanna Kengrungruangchai |
|
Thai |
33 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Damrong Kengrungruangchai is
the Managing Director.
He is Thai
nationality with the
age of 62
years old.
Mr. Boriboon Kengrungruangchai is
the Deputy Managing
Director.
He is Thai
nationality with the
age of 35
years old.
Mr. Thanawat Panpairoj
is the Sales
& Marketing Manager.
He is Thai
nationality.
Ms. Suwanna
Kengrungruangchai is the
General Manager.
She is Thai
nationality with the
age of 33
years old.
BUSINESS OPERATIONS
The subject is
engaged in purchasing,
distributing and exporting
wide range of
stainless steel scraps,
nickel scraps and
metal scraps. Range of
products includes stainless
steel turning #304, stainless
scrap # 430, heavy cutting
stainless steel # 304 and
stainless scrap # 304.
PURCHASE
100% of the
products is purchased
from local general
industries and suppliers.
EXPORT [COUNTRIES]
60% of the
products is exported
to Japan, India,
Korea, Taiwan, Hong
Kong and United
States of America.
SALES [LOCAL]
40% of the
products is sold
locally by wholesale
to manufacturers and
wholesalers.
MAJOR CUSTOMER
Cronimet Corporation :
United Sates of
America
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 according to
IRICO’S DATABASE 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.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Nonthaburi Branch
: Nonthaburi Province]
EMPLOYMENT
The subject employs
approximately 100 staff.
LOCATION DETAILS
The premise is
owned for administrative office,
factory and warehouse
at the heading
address. Premise is
located in commercial/residential area.
Branches
- 47/1 Moo 7, T.
Suanyai, A. Muang,
Nonthaburi 11000
- 38/3 Moo 6,
Nakornin Rd., T.
Bangkhunkong, A. Bangkruay,
Nonthaburi 11130
Tel.: [66]
2459-5449-53, Fax: [66]
2459-5056
COMMENT
Subject’s operating performance
was excellent in
2011 and 2012. Metal
scrap is in strong
demand especially in
overseas, e.g. Japan. With strong consumption both domestic and export markets, subject has
outstanding sales and
services.
FINANCIAL INFORMATION
The capital was
registered at Bht.
1,000,000 divided into
100 shares of Bht.
10,000 each.
The capital was
increased later as
following:
Bht. 10,000,000 on
August 22, 2000
Bht. 30,000,000 on
July 22, 2003
Bht. 50,000,000 on
August 23, 2004
Bht. 200,000,000 on
February 22, 2007
The latest registered
capital was increased
to Bht. 200,000,000 divided
into 20,000 shares
of Bht. 10,000
each with fully
paid.
THE SHAREHOLDERS LISTED WERE
[as at
June 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Damrong Kengrungruangchai Nationality: Thai Address : 38/3
Moo 6, T. Bangkhunkong, A. Bangkruay,
Nonthaburi |
10,000 |
50.00 |
|
Mrs. Sumalee Kengrungruangchai Nationality: Thai Address : 38/3
Moo 6, T. Bangkhunkong, A. Bangkruay,
Nonthaburi |
4,000 |
20.00 |
|
Ms. Suwanna Kengrungruangchai Nationality: Thai Address : 38/3
Moo 6, T. Bangkhunkong, A. Bangkruay,
Nonthaburi |
3,000 |
15.00 |
|
Mr. Boriboon Kengrungruangchai Nationality: Thai Address : 38/3
Moo 6, T. Bangkhunkong, A. Bangkruay,
Nonthaburi |
3,000 |
15.00 |
Total Shareholders : 4
Share Structure
[as at
June 30, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
20,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
4 |
20,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Natthapol Areeprasertsuk No.
3988
BALANCE SHEET [BAHT]
The latest financial
figures published for
February 29, 2012;
February 28 2011 &
2010 were:
ASSETS
|
Current Assets |
Feb. 29,
2012 |
Feb. 28,
2011 |
Feb. 28,
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
10,179,458.27 |
1,627,427.70 |
1,704,618.19 |
|
Trade Accounts Receivable
& Postdated Cheque |
322,684,326.68 |
321,704,737.92 |
190,038,718.35 |
|
Short-term Lending to Directors |
45,300,000.00 |
- |
6,092,500.00 |
|
Inventories |
354,098,350.95 |
365,623,520.02 |
298,472,922.17 |
|
Receivable-Revenue Department |
16,017,860.94 |
35,232,820.91 |
15,080,885.66 |
|
Other Current Assets
|
17,880,758.36 |
20,184,774.12 |
15,765,024.83 |
|
Total Current Assets
|
766,160,755.20 |
744,373,280.67 |
527,154,669.20 |
|
|
|
|
|
|
Fixed Assets |
76,681,760.49 |
82,213,730.76 |
74,054,914.46 |
|
Deposit |
3,000.00 |
3,000.00 |
3,000.00 |
|
Total Assets |
842,845,515.69 |
826,590,011.43 |
601,212,583.66 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
Feb. 29,
2012 |
Feb. 28,
2011 |
Feb. 28,
2010 |
|
|
|
|
|
|
Bank Overdraft and Short-term
Loan from Financial Institution |
513,081,019.47 |
525,991,552.28 |
316,159,375.05 |
|
Trade Accounts Payable & Postdated Cheque |
60,603,879.06 |
31,338,376.17 |
35,474,828.12 |
|
Current Portion of Hire-Purchase Contract Payable |
2,576,336.55 |
3,867,232.13 |
2,385,858.37 |
|
Short-term Loan from
Related Person |
12,500,000.00 |
14,870,000.00 |
20,000,000.00 |
|
Accrued Income Tax |
1,006,852.02 |
4,187,392.08 |
2,658,952.88 |
|
Other Current Liabilities |
10,279,427.02 |
9,683,313.53 |
10,697,896.72 |
|
Total Current Liabilities |
600,047,514.12 |
589,937,866.19 |
387,376,911.14 |
|
|
|
|
|
|
Hire-Purchase Contract Payable -
Net of Current
Portion |
2,961,588.83 |
5,044,323.52 |
710,247.38 |
|
Total Liabilities |
603,009,102.95 |
594,982,189.71 |
388,087,158.52 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10,000
par value authorized, issued
and fully paid share
capital 20,000 shares
|
200,000,000.00 |
200,000,000.00 |
200,000,000.00 |
|
Capital Paid |
200,000,000.00 |
200,000,000.00 |
200,000,000.00 |
|
Retained Earning -
Unappropriated |
39,836,412.74 |
31,607,821.72 |
13,125,425.14 |
|
Total Shareholders' Equity |
239,836,412.74 |
231,607,821.72 |
213,125,425.14 |
|
Total Liabilities & Shareholders' Equity |
842,845,515.69 |
826,590,011.43 |
601,212,583.66 |
PROFIT & LOSS ACCOUNT
|
Revenue |
Feb. 29,
2012 |
Feb. 28,
2011 |
Feb. 28,
2010 |
|
|
|
|
|
|
Sales |
2,155,262,958.69 |
2,665,036,470.06 |
1,366,243,207.20 |
|
Gain on Exchange Rate |
6,958,991.24 |
21,696,177.35 |
5,880,348.90 |
|
Other Income |
4,232,853.74 |
3,070,770.08 |
2,770,866.26 |
|
Total Revenues |
2,166,454,803.67 |
2,689,803,417.49 |
1,374,894,422.36 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,998,183,370.17 |
2,472,154,114.40 |
1,241,509,991.99 |
|
Selling Expenses |
77,148,744.57 |
122,163,315.56 |
69,001,100.42 |
|
Administrative Expenses |
59,618,701.19 |
53,325,988.88 |
44,386,330.22 |
|
Total Expenses |
2,134,950,815.93 |
2,647,643,418.84 |
1,354,897,422.63 |
|
Profit / [Loss] before Financial Cost & Income Tax |
31,503,987.74 |
42,159,998.65 |
19,996,999.73 |
|
Financial Cost |
[18,801,295.72] |
[14,776,076.61] |
[9,492,759.27] |
|
Profit / [Loss] before Income Tax |
12,702,692.02 |
27,383,922.04 |
10,504,240.46 |
|
Income Tax |
[4,474,101.00] |
[8,901,525.46] |
[4,329,118.56] |
|
Net Profit / [Loss] |
8,228,591.02 |
18,482,396.58 |
6,175,121.90 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.28 |
1.26 |
1.36 |
|
QUICK RATIO |
TIMES |
0.66 |
0.61 |
0.55 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
28.11 |
32.42 |
18.45 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.56 |
3.22 |
2.27 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
64.68 |
53.98 |
87.75 |
|
INVENTORY TURNOVER |
TIMES |
5.64 |
6.76 |
4.16 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
54.65 |
44.06 |
50.77 |
|
RECEIVABLES TURNOVER |
TIMES |
6.68 |
8.28 |
7.19 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
11.07 |
4.63 |
- |
|
CASH CONVERSION CYCLE |
DAYS |
108.26 |
93.42 |
138.52 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
92.71 |
92.76 |
90.87 |
|
SELLING & ADMINISTRATION |
% |
6.35 |
6.58 |
8.30 |
|
INTEREST |
% |
0.87 |
0.55 |
0.69 |
|
GROSS PROFIT MARGIN |
% |
7.81 |
8.17 |
9.76 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.46 |
1.58 |
1.46 |
|
NET PROFIT MARGIN |
% |
0.38 |
0.69 |
0.45 |
|
RETURN ON EQUITY |
% |
3.43 |
7.98 |
2.90 |
|
RETURN ON ASSET |
% |
0.98 |
2.24 |
1.03 |
|
EARNING PER SHARE |
BAHT |
411.43 |
924.12 |
308.76 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.72 |
0.72 |
0.65 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.51 |
2.57 |
1.82 |
|
TIME INTEREST EARNED |
TIMES |
1.68 |
2.85 |
2.11 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(19.13) |
95.06 |
|
|
OPERATING PROFIT |
% |
(25.28) |
110.83 |
|
|
NET PROFIT |
% |
(55.48) |
199.30 |
|
|
FIXED ASSETS |
% |
(6.73) |
11.02 |
|
|
TOTAL ASSETS |
% |
1.97 |
37.49 |
|
ANNUAL GROWTH : RISKY
An annual sales growth of -19.13%. Turnover has decreased from THB
2,665,036,470.06 in 2011 to THB 2,155,262,958.69 in 2012. While net profit has
decreased from THB 18,482,396.58 in 2011 to THB 8,228,591.02 in 2012. And total
assets has increased from THB 826,590,011.43 in 2011 to THB 842,845,515.69 in
2012.
PROFITABILITY : EXCELLENT
PROFITABILITY RATIO
|
Gross Profit Margin |
7.81 |
Impressive |
Industrial Average |
6.55 |
|
Net Profit Margin |
0.38 |
Impressive |
Industrial Average |
0.38 |
|
Return on Assets |
0.98 |
Impressive |
Industrial Average |
0.76 |
|
Return on Equity |
3.43 |
Impressive |
Industrial Average |
1.93 |
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 7.81%. 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 0.38%, the
same 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
0.98%, 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 3.43%, 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 Downtrend
Return on Equity Downtrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.28 |
Acceptable |
Industrial Average |
1.73 |
|
Quick Ratio |
0.66 |
|
|
|
|
Cash Conversion Cycle |
108.26 |
|
|
|
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 1.28 times in 2012, increased from 1.26 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 0.66 times in 2012,
increased from 0.61 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 109 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.72 |
Acceptable |
Industrial Average |
0.61 |
|
Debt to Equity Ratio |
2.51 |
Risky |
Industrial Average |
1.71 |
|
Times Interest Earned |
1.68 |
Impressive |
Industrial Average |
0.85 |
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 1.68 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 0.72 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 : EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
28.11 |
Impressive |
Industrial Average |
6.24 |
|
Total Assets Turnover |
2.56 |
Impressive |
Industrial Average |
2.12 |
|
Inventory Conversion Period |
64.68 |
|
|
|
|
Inventory Turnover |
5.64 |
Impressive |
Industrial Average |
4.73 |
|
Receivables Conversion Period |
54.65 |
|
|
|
|
Receivables Turnover |
6.68 |
Impressive |
Industrial Average |
5.68 |
|
Payables Conversion Period |
11.07 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.68 and 8.28 in
2012 and 2011 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 2012
decreased from 2011. 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 54 days at the end of 2011 to
65 days at the end of 2012. This represents a negative trend. And Inventory
turnover has decreased from 6.76 times in year 2011 to 5.64 times in year 2012.
The company's Total Asset Turnover is calculated as 2.56 times and 3.22
times in 2012 and 2011 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.54.63 |
|
UK Pound |
1 |
Rs.87.50 |
|
Euro |
1 |
Rs.71.32 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.