MIRA
INFORM REPORT
|
Report Date : |
12.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
BRIGHT STAR DIAMOND CO.,LTD. |
|
|
|
|
Registered Office : |
Suite 160-161, 15th Floor, The Executive House, 410 Surawong Road, Suriyawongse, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.01.2012 |
|
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|
|
Date of Incorporation : |
10.02.1993 |
|
|
|
|
Com. Reg. No.: |
0105536015710 [Former :
1292/2536] |
|
|
|
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Legal Form : |
Private Limited Company |
|
|
|
|
LINE OF BUSINESS : |
IMPORTER AND DISTRIBUTOR
OF DIAMONDS AND JEWELLERY
PRODUCTS |
|
|
|
|
No. of Employees : |
3 |
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 |
|
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
BRIGHT STAR DIAMOND CO.,LTD.
SUMMARY
BUSINESS ADDRESS : SUITE 160-161, 15th FLOOR,
THE EXECUTIVE HOUSE,
410 SURAWONG
ROAD, SURIYAWONGSE,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2237-8051-2,
2234-7648
FAX : [66] 2237-6110
E-MAIL ADDRESS : prakashbamb@hotmail.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1993
REGISTRATION NO. : 0105536015710 [Former
: 1292/2536]
TAX ID NO. : 3011229651
CAPITAL REGISTERED : BHT.
15,000,000
CAPITAL PAID-UP : BHT.
15,000,000
SHAREHOLDER’S PROPORTION : THAI
: 51%
INDIAN
: 49%
FISCAL YEAR CLOSING DATE : JANUARY 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PRAKASH CHAND BAMB,
INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 3
LINES OF BUSINESS : DIAMONDS AND
JEWELLERY PRODUCTS
IMPORTER AND
DISTRIBUTOR
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH FAIR
PERFORMANCE
HISTORY
The subject was
established on February
10, 1993 as
a private limited
company under the name
style BRIGHT STAR
DIAMOND CO., LTD., by Thai
and Indian groups,
in order to import and
distribute diamond and jewelry products to
local market. It currently employs
3 staff.
The subject’s registered
address is Suite 160-161, 15th Flr., The Executive
House, 410 Surawong Rd.,
Suriyawongse, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Prakash Chand
Bamb |
|
Indian |
49 |
|
Mr. Arjit Mehta |
|
Indian |
50 |
|
Mr. Ghisalal Bamb |
|
Indian |
67 |
|
Mr. Therdsak Lertmongkolwanich |
|
Thai |
57 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Prakash Chand
Bamb is the
Managing Director.
He is Indian
nationality with the
age of 49
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing and
distributing of diamonds,
gemstones and jewelry
products.
PURCHASE
90% of the
products is imported
from India and
Hong Kong, the
remaining 10% is
purchased from local
suppliers.
SALES [LOCAL]
100% of the
products is sold
locally by wholesale
to traders, manufacturers
end-users.
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.
SUBSIDIARY AND AFFILIATED COMPANY
The subject is
not found to have
any subsidiary or
affiliated company here
in Thailand.
CREDIT
Sales are by
cash or on
the credit term
of 30 days.
Local bills are
paid by cash
or on the
credits term of 30-60 days.
Imports are by
L/C at sight
or T/T.
BANKING
Standard Chartered Bank
[Thai] Public Co.,
Ltd.
EMPLOYMENT
The subject employs
3 staff [office
and sales staff].
LOCATION DETAILS
The premise is rented for administrative office
at the heading
address. Premise is
located in a prime
commercial area.
COMMENT
The subject’s business in
2011-2012 was moderate. However,
slow consumption had
seen during the
years 2010-2011. However,
its business has been moving towards the economic improvement. Demand of
diamonds, gemstones and other precious stones has gradually
increased. Subject’s sales are
also rising from
market demand.
FINANCIAL INFORMATION
The capital was
initially registered at Bht. 6,000,000
divided into 60,000
shares of Bht.
100 each.
On August 2, 2002,
the capital was
increased to Bht.
15,000,000 divided into
150,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED
WERE
[as at May
31, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Prakash Chand
Bamb Nationality: Indian Address : 628
New Rd., Klongtonsai, Klongsan,
Bangkok 10600 |
40,000 |
26.67 |
|
Mr. Therdsak Lertmongkolwanich Nationality: Thai Address : 12/2
Trok Petchploy, Siphya,
Bangrak, Bangkok |
40,000 |
26.67 |
|
Mr. Pornchai Lertthanasupakij Nationality: Thai Address : 361/4
Mahaprutharam, Bangrak, Bangkok |
20,000 |
13.33 |
|
Ms. Pranee Klinhom Nationality: Thai Address : 5
Moo 9, Bangpai,
Huaykrachaow,
Kanchanaburi |
16,500 |
11.00 |
|
Mr. Ghisalal Bamb Nationality: Indian Address : 628
New Rd., Klongtonsai, Klongsan,
Bangkok 10600 |
15,000 |
10.00 |
|
Mr. Bett Prasart
Pant Nationality: Indian Address : 410/160-161
Surawong Rd., Suriyawongse,
Bangrak, Bangkok |
13,500 |
9.00 |
|
Mr. Ajit Mehta Nationality: Indian Address : 628
New Rd., Klongtonsai, Klongsan, Bangkok 10600 |
5,000 |
3.33 |
Total Shareholders : 7
Share Structure
[as at May
31, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
76,500 |
51.00 |
|
Foreign-Indian |
4 |
73,500 |
49.00 |
|
Total |
7 |
150,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Mr. Suchart Srimanjantha
No. 3549
BALANCE SHEET [BAHT]
The latest
financial figures published
for January 31,
2012, 2011 &
2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
420,738.12 |
229,075.45 |
449,729.48 |
|
Trade Accounts Receivable |
5,378,209.52 |
4,027,359.55 |
16,091,042.04 |
|
Inventories |
14,405,593.54 |
18,692,464.09 |
14,229,327.40 |
|
Total Current Assets
|
20,204,541.18 |
22,948,899.09 |
30,770,098.92 |
|
|
|
|
|
|
Fixed Assets |
1,740,394.40 |
1,894,386.89 |
2,051,514.79 |
|
Other Assets |
1,000.00 |
46,000.00 |
46,000.00 |
|
Total Assets |
21,945,935.58 |
24,889,285.98 |
32,867,613.71 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable |
7,652,136.01 |
9,140,329.07 |
15,968,416.87 |
|
Accrued Income Tax |
106,301.69 |
43,800.00 |
- |
|
Accrued Expenses |
63,176.39 |
80,164.70 |
119,677.80 |
|
Pre-received for Goods |
280,560.00 |
280,560.00 |
- |
|
Total Current Liabilities |
8,102,174.09 |
9,544,853.77 |
16,088,094.67 |
|
|
|
|
|
|
Loan from Bank |
5,901,519.26 |
6,282,952.73 |
6,719,033.44 |
|
Total Liabilities |
14,003,693.35 |
15,827,806.50 |
22,807,128.11 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value Authorized &
issued share capital 150,000
shares |
15,000,000.00 |
15,000,000.00 |
15,000,000.00 |
|
Capital Paid |
15,000,000.00 |
15,000,000.00 |
15,000,000.00 |
|
Retained Earning -
Unappropriated |
[7,057,757.77] |
[5,938,520.52] |
[4,939,514.40] |
|
Total Shareholders' Equity |
7,942,242.23 |
9,061,479.48 |
10,060,485.60 |
|
Total Liabilities & Shareholders' Equity |
21,945,935.58 |
24,889,285.98 |
32,867,613.71 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
22,353,558.08 |
16,994,683.77 |
28,312,152.08 |
|
Other Income |
88,206.18 |
727,635.10 |
964,383.40 |
|
Total Revenues |
22,441,764.26 |
17,722,318.87 |
29,276,535.48 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
18,638,586.68 |
14,189,301.11 |
24,594,259.82 |
|
Selling Expenses |
707,951.58 |
551,026.65 |
789,114.16 |
|
Administrative Expenses |
3,465,514.13 |
3,352,337.07 |
3,443,197.08 |
|
Total Expenses |
22,812,052.39 |
18,092,664.83 |
28,826,571.06 |
|
Profit / [Loss] before
Finance Cost & Income Tax |
[370,288.13] |
[370,345.96] |
449,961.42 |
|
Finance Cost |
[581,297.43] |
[514,510.16] |
[36,468.49] |
|
Profit / [Loss] before Income Tax |
[951,585.56] |
[884,856.12] |
413,495.93 |
|
Income Tax |
[167,651.69] |
[114,150.00] |
[132,346.50] |
|
Net Profit / [Loss] |
[1,119,237.25] |
[999,006.12] |
281,149.43 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.49 |
2.40 |
1.91 |
|
QUICK RATIO |
TIMES |
0.72 |
0.45 |
1.03 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
12.84 |
8.97 |
13.80 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.02 |
0.68 |
0.86 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
282.11 |
480.84 |
211.18 |
|
INVENTORY TURNOVER |
TIMES |
1.29 |
0.76 |
1.73 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
87.82 |
86.50 |
207.45 |
|
RECEIVABLES TURNOVER |
TIMES |
4.16 |
4.22 |
1.76 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
149.85 |
235.12 |
236.99 |
|
CASH CONVERSION CYCLE |
DAYS |
220.07 |
332.21 |
181.64 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
83.38 |
83.49 |
86.87 |
|
SELLING & ADMINISTRATION |
% |
18.67 |
22.97 |
14.95 |
|
INTEREST |
% |
2.60 |
3.03 |
0.13 |
|
GROSS PROFIT MARGIN |
% |
17.01 |
20.79 |
16.54 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(1.66) |
(2.18) |
1.59 |
|
NET PROFIT MARGIN |
% |
(5.01) |
(5.88) |
0.99 |
|
RETURN ON EQUITY |
% |
(14.09) |
(11.02) |
2.79 |
|
RETURN ON ASSET |
% |
(5.10) |
(4.01) |
0.86 |
|
EARNING PER SHARE |
BAHT |
(7.46) |
(6.66) |
1.87 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.64 |
0.64 |
0.69 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.76 |
1.75 |
2.27 |
|
TIME INTEREST EARNED |
TIMES |
(0.64) |
(0.72) |
12.34 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
31.53 |
(39.97) |
|
|
OPERATING PROFIT |
% |
(0.02) |
(182.31) |
|
|
NET PROFIT |
% |
(12.04) |
(455.33) |
|
|
FIXED ASSETS |
% |
(8.13) |
(7.66) |
|
|
TOTAL ASSETS |
% |
(11.83) |
(24.27) |
|
ANNUAL GROWTH : RISKY
An annual sales growth is 31.53%. Turnover has increased from THB
PROFITABILITY : ACCEPTABLE
PROFITABILITY RATIO
|
Gross Profit Margin |
17.01 |
Impressive |
Industrial Average |
9.67 |
|
Net Profit Margin |
(5.01) |
Deteriorated |
Industrial Average |
(0.21) |
|
Return on Assets |
(5.10) |
Deteriorated |
Industrial Average |
(0.26) |
|
Return on Equity |
(14.09) |
Deteriorated |
Industrial Average |
(0.72) |
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 17.01%. 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 -5.01%. 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 -5.1%.
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 -14.09%.
Trend of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Stable
LIQUIDITY : ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
2.49 |
Impressive |
Industrial Average |
1.67 |
|
Quick Ratio |
0.72 |
|
|
|
|
Cash Conversion Cycle |
220.07 |
|
|
|
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 2.49 times in 2012, increased from 2.4 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 0.72 times in 2012,
increased from 0.45 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 221 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.64 |
Acceptable |
Industrial Average |
0.61 |
|
Debt to Equity Ratio |
1.76 |
Risky |
Industrial Average |
1.71 |
|
Times Interest Earned |
(0.64) |
Risky |
Industrial Average |
0.68 |
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 -0.64 lower than 1, so the company is not generating
enough cash from EBIT to meet its
interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.64 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 Uptrend
Times Interest Earned Uptrend
ACTIVITY : SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
12.84 |
Impressive |
Industrial Average |
11.13 |
|
Total Assets Turnover |
1.02 |
Acceptable |
Industrial Average |
1.44 |
|
Inventory Conversion Period |
282.11 |
|
|
|
|
Inventory Turnover |
1.29 |
Acceptable |
Industrial Average |
2.05 |
|
Receivables Conversion Period |
87.82 |
|
|
|
|
Receivables Turnover |
4.16 |
Impressive |
Industrial Average |
3.26 |
|
Payables Conversion Period |
149.85 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.16 and
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 481 days at the
end of 2011 to 282 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 0.76 times in year 2011 to 1.29 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.02 times and 0.68
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 Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
DIAMOND INDUSTRY –
INDIA
-
From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was possible only due to
combination of the manufacturing skills of the Indian workforce and the
untiring and unflagging efforts of the Indian diamantaires, supported by
progressive Government policies.
-
The area of study of family owned diamond businesses derives its
importance from the huge conglomerate of family run organizations which operate
in the diamond industry since many generations.
-
Some of the basic traits of family run business enterprises include
spirit of entrepreneurship, mutual trust lowers transaction costs, small, nimble
and quick to react, information as a source of advantage and philanthropy.
-
Family owned diamond businesses need to improve on many fronts including
higher standard of corporate governance, long-term performance – focused
strategies, modern management and technology.
-
The diamond jewellery industry in India today may be more than Rs 60000
mil and is rated amongst the fastest growing in the world. Indi ranks
third in the world in domestic diamond consumption.
-
Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import – export,
inter-company transactions, financially assisted by banks. In the process,
several public sector banks lost several hundred million rupees. They mostly diverted
borrowed money for diamond business into real estate and capital markets.
-
Excerpts from Times of India dated 30th October 2010 is as
under –
DIAMOND SAGA –
DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
-
Most of the money borrowed from the banks in the name of their diamond
business has been diverted in real estate and the share market. The banks are
not in a position to seize their properties because in many cases, these were
purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.54 |
|
UK Pound |
1 |
Rs.88.05 |
|
Euro |
1 |
Rs.72.29 |
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.