|
Report Date : |
16.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
ROYAL PAINT COMPANY LIMITED |
|
|
|
|
Registered Office : |
Lot A2 Phu Bai Industrial Park, Huong Thuy District, Thua Thien-Hue Province |
|
|
|
|
Country : |
Vietnam |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Year of Incorporation : |
1999 |
|
|
|
|
Com. Reg. No.: |
3300102544 |
|
|
|
|
Legal Form : |
Limited Liability Company |
|
|
|
|
Line of Business : |
Subject focuses on producing the variety of coating products such as paint, lacquer, varnish, wood preservative oil. |
|
|
|
|
No. of Employees : |
100 |
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 : |
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) |
|
Vietnam |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
VIET NAM - ECONOMIC OVERVIEW
Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war, the loss of financial support from the old Soviet Bloc, and the rigidities of a centrally-planned economy. While Vietnam's economy remains dominated by state-owned enterprises, which still produce about 40% of GDP, Vietnamese authorities have reaffirmed their commitment to economic liberalization and international integration. They have moved to implement the structural reforms needed to modernize the economy and to produce more competitive export-driven industries. Vietnam joined the World Trade Organization in January 2007 following more than a decade-long negotiation process. Vietnam became an official negotiating partner in the developing Trans-Pacific Partnership trade agreement in 2010. Agriculture's share of economic output has continued to shrink from about 25% in 2000 to about 22% in 2011, while industry's share increased from 36% to 40% in the same period. Deep poverty has declined significantly, and Vietnam is working to create jobs to meet the challenge of a labor force that is growing by more than one million people every year. The global recession has hurt Vietnam's export-oriented economy, with GDP in 2009-11 growing less than the 7% per annum average achieved during the last decade. In 2011, exports increased by more than 33%, year-on-year, and the trade deficit, while reduced from 2010, remained high, prompting the government to maintain administrative trade measures to limit the trade deficit. Vietnam's managed currency, the dong, continues to face downward pressure due to a persistent trade imbalance. Since 2008, the government devalued it in excess of 20% through a series of small devaluations. Foreign donors pledged nearly $8 billion in new development assistance for 2011. However, the government's strong growth-oriented economic policies have caused it to struggle to control one of the region's highest inflation rates, which reached as high as 23% in August 2011 and averaged 18% for the year. In February 2011, Vietnam shifted its focus away from economic growth to stabilizing its economy and tightened fiscal and monetary policies. In early 2012 Vietnam unveiled a broad "three pillar" economic reform program, proposing the restructuring of public investment, state-owned enterprises and the banking sector. Vietnam's economy continues to face challenges from low foreign exchange reserves, an undercapitalized banking sector, and high borrowing costs. The near-bankruptcy and subsequent default of the state-owned-enterprise Vinashin, a leading shipbuilder, led to a ratings downgrade of Vietnam's sovereign debt, exacerbating Vietnam's borrowing difficulties.
Source
: CIA
SUBJECT IDENTIFICATION &
LEGAL FORM
|
||
|
|
||
|
English Name |
|
ROYAL PAINT COMPANY LIMITED |
|
Vietnamese Registered Name |
|
CONG TY TRACH NHIEM HUU HAN SON HOANG GIA |
|
Short name |
|
ROYAL PAINT CO.,LTD |
|
Type of Business |
|
Limited liability company |
|
Year Established |
|
1999 |
|
Establishment Decision |
|
02 GP/TLDN-02 |
|
Date of Issuance |
|
05 Jan 1999 |
|
Place of Issuance |
|
People's Committee of Thua
Thien Hue Province |
|
Business Registration No. |
|
3300102544 |
|
Date of Registration |
|
09 Aug 2011 |
|
Place of Registration |
|
Planning and Investment Department of Thua Thien Hue Province |
|
Chartered capital |
|
VND 18,000,000,000 |
|
Status |
|
Unlisted |
|
Tax code |
|
3300102544 |
|
Total Employees |
|
100 |
|
Size |
|
Medium |
ADDRESSES
|
||
|
|
||
|
Head Office |
||
|
Address |
|
Lot A2 Phu Bai Industrial Park, Huong Thuy District, Thua Thien-Hue Province, Vietnam |
|
Telephone |
|
(84-54) 3863975 |
|
Fax |
|
(84-54) 3852252 |
|
Website |
|
|
|
Email |
|
|
|
Note: The tel given is incorrect. |
||
|
Branch in Ha Noi |
||
|
Address |
|
No. 14 Chuong
Duong Do Str., Hoan Kiem District, Ha Noi City,
Vietnam |
|
Telephone |
|
(84-4) 39321463 |
|
|
||
|
Branch in Ho Chi
Minh |
||
|
Address |
|
No. 13 Ngo Van So Str.
Ward 13, 4 District, Ho Chi Minh City, Vietnam |
|
Telephone |
|
(84-8) 62617261 |
|
|
||
DIRECTORS
|
||
|
|
||
|
1.
NAME |
|
Mr.
NGUYEN VAN THANH |
|
Position |
|
Director |
|
Date of Birth |
|
22 Mar 1959 |
|
ID Number/Passport |
|
191074734 |
|
ID Issue Date |
|
22 Jul 1985 |
|
ID Issue Place |
|
Binh Tri Thien
Police |
|
Resident |
|
No.15 Nguyen Thai Hoc, Hue City, Thua Thien-Hue Province,
Vietnam |
|
Current resident |
|
No.15 Nguyen Thai Hoc, Hue City, Thua Thien-Hue Province,
Vietnam |
|
|
||
BUSINESS NATURE AND ACTIVITIES
|
|
|
|
Subject
focuses on producing the variety of coating products such as paint, lacquer,
varnish, wood preservative oil… |
|
|
IMPORT & EXPORT ACTIVITIES
|
||
|
|
||
|
IMPORT: |
||
|
·
Types of products |
|
Material |
|
·
Market |
|
China, Japan, Sweden |
|
|
||
|
EXPORT: |
||
|
Note: Currently, the subject does not export |
||
|
|
||
BANKERS
|
||
|
|
||
|
1.
VIET NAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE THUA THIEN HUE
BRANCH |
||
|
Address |
|
No.02 Le Quy Don, Hue City, Thua Thien-Hue Province,
Vietnam |
|
Telephone |
|
(84-54) 3825102 |
|
|
||
SHAREHOLDERS
|
||
|
|
||
|
1.
NAME |
|
Mr.
NGUYEN VAN THANH |
|
Position |
|
Director |
|
Date of Birth |
|
22 Mar 1959 |
|
ID Number/Passport |
|
191074734 |
|
Issued on |
|
22 Jul 1985 |
|
Issued Place |
|
Binh Tri Thien Police |
|
Resident |
|
No.15 Nguyen Thai Hoc, Hue City, Thua Thien-Hue Province,
Vietnam |
|
Current Resident |
|
No.15 Nguyen Thai Hoc, Hue City, Thua Thien-Hue Province,
Vietnam |
|
Value of shares |
|
VND 17,820,000,000 |
|
Percentage |
|
99% |
|
|
||
|
2.
NAME |
|
Mr.
NGUYEN VAN HOANG |
|
ID Number/Passport |
|
191017254 |
|
Resident |
|
No.251 Le Quang Dinh, Hue City, Thua Thien-Hue Province, Vietnam |
|
Value of shares |
|
VND 90,000,000 |
|
Percentage |
|
0.5% |
|
|
||
|
3.
NAME |
|
Mr.
NGUYEN VAN TINH |
|
ID Number/Passport |
|
271296421 |
|
Resident |
|
749/5 Tam Hiep, Bien Hoa City, Dong Nai Province, Vietnam |
|
Value of shares |
|
VND 90,000,000 |
|
Percentage |
|
0.5% |
|
|
||
FINANCIAL DATA
|
|||
|
|
|||
|
BALANCE
SHEET |
|||
Unit: One VND
|
|||
|
Balance sheet
date |
31/12/2011 |
31/12/2010 |
31/12/2009 |
|
Number of weeks |
52 |
52 |
52 |
ASSETS
|
|||
|
A – CURRENT
ASSETS |
20,090,000,000 |
24,555,366,329 |
29,247,431,878 |
|
I. Cash and cash
equivalents |
639,000,000 |
387,961,007 |
597,326,503 |
|
1. Cash |
639,000,000 |
387,961,007 |
597,326,503 |
|
2. Cash equivalents |
0 |
0 |
0 |
|
II. Short-term
investments |
0 |
0 |
0 |
|
1. Short-term investments |
0 |
0 |
0 |
|
2. Provisions for devaluation of short-term investments |
0 |
0 |
0 |
|
III. Accounts
receivable |
7,653,000,000 |
1,552,070,797 |
2,655,113,691 |
|
1. Receivable from customers |
6,681,000,000 |
877,460,306 |
357,002,859 |
|
2. Prepayments to suppliers |
420,000,000 |
0 |
0 |
|
3. Inter-company receivable |
0 |
0 |
0 |
|
4. Receivable according to the progress of construction |
0 |
0 |
0 |
|
5. Other receivable |
284,000,000 |
674,610,491 |
2,298,110,832 |
|
6. Provisions for bad debts |
268,000,000 |
0 |
0 |
|
IV. Inventories |
10,413,000,000 |
21,954,732,231 |
25,466,056,431 |
|
1. Inventories |
10,413,000,000 |
12,387,910,417 |
15,085,076,949 |
|
2. Provisions for devaluation of inventories |
0 |
9,566,821,814 |
10,380,979,482 |
|
V. Other Current
Assets |
1,385,000,000 |
660,602,294 |
528,935,253 |
|
1. Short-term prepaid expenses |
40,000,000 |
0 |
0 |
|
2. VAT to be deducted |
0 |
0 |
0 |
|
3. Taxes and other accounts receivable from the State |
21,000,000 |
0 |
0 |
|
4. Other current assets |
1,324,000,000 |
660,602,294 |
528,935,253 |
|
B. LONG-TERM
ASSETS |
4,440,000,000 |
6,257,856,918 |
6,976,829,322 |
|
I. Long term
accounts receivable |
-2,995,000,000 |
0 |
0 |
|
1. Long term account receivable from customers |
0 |
0 |
0 |
|
2. Working capital in affiliates |
-2,995,000,000 |
0 |
0 |
|
3. Long-term inter-company receivable |
0 |
0 |
0 |
|
4. Other long-term receivable |
0 |
0 |
0 |
|
5. Provisions for bad debts from customers |
0 |
0 |
0 |
|
II. Fixed assets
|
5,814,000,000 |
5,873,644,830 |
6,637,464,997 |
|
1. Tangible assets |
5,609,000,000 |
5,873,644,830 |
6,637,464,997 |
|
- Historical costs |
13,760,000,000 |
11,389,955,130 |
11,067,902,440 |
|
- Accumulated depreciation |
-8,151,000,000 |
-5,516,310,300 |
-4,430,437,443 |
|
2. Financial leasehold assets |
0 |
0 |
0 |
|
- Historical costs |
0 |
0 |
0 |
|
- Accumulated depreciation |
0 |
0 |
0 |
|
3. Intangible assets |
56,000,000 |
0 |
0 |
|
- Initial costs |
75,000,000 |
0 |
0 |
|
- Accumulated amortization |
-19,000,000 |
0 |
0 |
|
4. Construction-in-progress |
149,000,000 |
0 |
0 |
|
III. Investment
property |
0 |
0 |
0 |
|
Historical costs |
0 |
0 |
0 |
|
Accumulated depreciation |
0 |
0 |
0 |
|
IV. Long-term
investments |
0 |
0 |
0 |
|
1. Investments in affiliates |
0 |
0 |
0 |
|
2. Investments in business concerns and joint ventures |
0 |
0 |
0 |
|
3. Other long-term investments |
0 |
0 |
0 |
|
4. Provisions for devaluation of long-term investments |
0 |
0 |
0 |
|
V. Other long-term
assets |
1,621,000,000 |
384,212,088 |
339,364,325 |
|
1. Long-term prepaid expenses |
1,621,000,000 |
0 |
0 |
|
2. Deferred income tax assets |
0 |
0 |
0 |
|
3. Other long-term assets |
0 |
384,212,088 |
339,364,325 |
|
VI. Goodwill |
0 |
0 |
0 |
|
1. Goodwill |
0 |
0 |
0 |
|
TOTAL ASSETS |
24,530,000,000 |
30,813,223,247 |
36,224,261,200 |
|
|
|||
LIABILITIES
|
|||
|
A- LIABILITIES |
16,898,000,000 |
8,737,107,441 |
14,133,000,841 |
|
I. Current
liabilities |
16,637,000,000 |
7,686,616,900 |
12,342,510,300 |
|
1. Short-term debts and loans |
9,199,000,000 |
5,795,974,951 |
8,406,658,058 |
|
2. Payable to suppliers |
3,844,000,000 |
1,822,843,111 |
3,857,010,232 |
|
3. Advances from customers |
1,634,000,000 |
0 |
0 |
|
4. Taxes and other obligations to the State Budget |
1,000,000 |
65,975,228 |
78,842,010 |
|
5. Payable to employees |
0 |
0 |
0 |
|
6. Accrued expenses |
0 |
0 |
0 |
|
7. Inter-company payable |
0 |
0 |
0 |
|
8. Payable according to the progress of construction contracts |
0 |
0 |
0 |
|
9. Other payable |
1,959,000,000 |
1,823,610 |
0 |
|
10. Provisions for short-term accounts payable |
0 |
0 |
0 |
|
11. Bonus and welfare funds |
0 |
0 |
0 |
|
II. Long-Term
Liabilities |
261,000,000 |
1,050,490,541 |
1,790,490,541 |
|
1. Long-term accounts payable to suppliers |
0 |
0 |
0 |
|
2. Long-term inter-company payable |
0 |
0 |
0 |
|
3. Other long-term payable |
0 |
0 |
0 |
|
4. Long-term debts and loans |
261,000,000 |
1,050,490,541 |
1,790,490,541 |
|
5. Deferred income tax payable |
0 |
0 |
0 |
|
6. Provisions for unemployment allowances |
0 |
0 |
0 |
|
7. Provisions for long-term accounts payable |
0 |
0 |
0 |
|
8. Unearned Revenue |
0 |
0 |
0 |
|
9. Science and technology development fund |
0 |
0 |
0 |
|
B- OWNER’S
EQUITY |
7,632,000,000 |
22,076,115,806 |
22,091,260,359 |
|
I. OWNER’S
EQUITY |
7,632,000,000 |
22,076,115,806 |
22,091,260,359 |
|
1. Capital |
7,779,000,000 |
18,184,197,644 |
18,184,197,644 |
|
2. Share premiums |
0 |
0 |
0 |
|
3. Other sources of capital |
0 |
2,795,611,191 |
2,795,611,191 |
|
4. Treasury stocks |
0 |
0 |
0 |
|
5. Differences on asset revaluation |
0 |
0 |
0 |
|
6. Foreign exchange differences |
0 |
0 |
0 |
|
7. Business promotion fund |
0 |
0 |
0 |
|
8. Financial reserved fund |
0 |
0 |
0 |
|
9. Other funds |
0 |
0 |
0 |
|
10. Retained earnings |
-147,000,000 |
1,096,306,971 |
1,111,451,524 |
|
11. Construction investment fund |
0 |
0 |
0 |
|
12. Business arrangement supporting fund |
0 |
0 |
0 |
|
II. Other
sources and funds |
0 |
0 |
0 |
|
1. Bonus and welfare funds (Elder form) |
0 |
0 |
0 |
|
2. Sources of expenditure |
0 |
0 |
0 |
|
3. Fund to form fixed assets |
0 |
0 |
0 |
|
MINORITY’S
INTEREST |
0 |
0 |
0 |
|
TOTAL
LIABILITIES AND OWNER’S EQUITY |
24,530,000,000 |
30,813,223,247 |
36,224,261,200 |
|
|
|||
|
PROFIT
& LOSS STATEMENT |
|||
|
|
|||
|
Description |
FY2011 |
FY2010 |
FY2009 |
|
1. Total Sales |
70,228,000,000 |
30,702,656,153 |
29,949,520,044 |
|
2. Deduction item |
3,066,000,000 |
0 |
0 |
|
3. Net revenue |
67,162,000,000 |
30,702,656,153 |
29,949,520,044 |
|
4. Costs of goods sold |
56,817,000,000 |
26,727,902,696 |
26,848,915,407 |
|
5. Gross profit |
10,345,000,000 |
3,974,753,457 |
3,100,604,637 |
|
6. Financial income |
6,000,000 |
6,005,268 |
10,442,913 |
|
7. Financial expenses |
1,781,000,000 |
771,509,416 |
419,435,725 |
|
- In which: Loan interest expenses |
1,764,000,000 |
771,509,416 |
419,435,725 |
|
8. Selling expenses |
1,960,000,000 |
0 |
0 |
|
9. Administrative overheads |
3,629,000,000 |
3,054,002,216 |
2,475,073,346 |
|
10. Net operating profit |
2,981,000,000 |
155,247,093 |
216,538,479 |
|
11. Other income |
2,141,000,000 |
0 |
92,380,422 |
|
12. Other expenses |
3,940,000,000 |
259,029 |
205,105,341 |
|
13. Other profit /(loss) |
-1,799,000,000 |
-259,029 |
-112,724,919 |
|
14. Total accounting profit before tax |
1,182,000,000 |
154,988,064 |
103,813,560 |
|
15. Current corporate income tax |
0 |
38,747,016 |
18,167,373 |
|
16. Deferred corporate income tax |
0 |
0 |
0 |
|
17. Interest from subsidiaries/related companies |
0 |
0 |
0 |
|
18. Profit after tax |
1,182,000,000 |
116,241,048 |
85,646,187 |
|
|
||||
|
FINANCIAL RATIOS
AND AVERAGE INDUSTRY RATIOS |
||||
|
|
||||
|
Description |
FY2011 |
FY2010 |
FY2009 |
Average Industry |
|
Current liquidity ratio |
1.21 |
3.19 |
2.37 |
1.72 |
|
Quick liquidity ratio |
0.58 |
0.34 |
0.31 |
1.06 |
|
Inventory circle |
5.46 |
1.13 |
1.05 |
13.62 |
|
Average receive period |
41.59 |
18.45 |
32.36 |
78.59 |
|
Utilizing asset performance |
2.74 |
1.00 |
0.83 |
1.55 |
|
Liability by total assets |
68.89 |
28.36 |
39.02 |
52.62 |
|
Liability by owner's equity |
221.41 |
39.58 |
63.98 |
163.63 |
|
Ebit / Total assets (ROA) |
12.01 |
3.01 |
1.44 |
13.16 |
|
Ebit / Owner's equity (ROE) |
38.60 |
4.20 |
2.37 |
29.85 |
|
Ebit / Total revenue (NPM) |
4.19 |
3.02 |
1.75 |
7.13 |
|
Gross profit / Total revenue (GPM) |
14.73 |
12.95 |
10.35 |
19.87 |
|
Note: The Average Industry was calculated by VietnamCredit
based on our own statistical data |
||||
|
|
||||
PAYMENT HISTORY & PERFORMANCE EXPERIENCES
|
||
|
|
||
|
Trade Morality |
|
Fair |
|
Liquidity |
|
Low/ Medium |
|
Payment status |
|
Average |
|
Financial Situation |
|
Below Average |
|
Development trend |
|
Stable |
|
Litigation data |
|
No Record |
|
Bankruptcy |
|
No Record |
|
Payment Methods |
|
LC |
|
Sale Methods |
|
Retailer and Wholesaler |
|
|
INTERPRETATION ON THE SCORES
|
|
|
|
Subject was found in Jan 1999 following establishment
decision No. 02GP/ TLDN-02 granted by People’s Committee of Thu Thien Hue Province. Subject’s business registration No.
050085 was issue by Planning and Investment Department of Thua
Thien Hue Province with registered capital of VND
18 billion, in which Mr. Nguyen Van Thanh –
Director engrosses with 99%. Beside head office and factory at Lot 2A, Phu Bai Industrial Park, Hue
City, Thua Thien Hue
Province with whole area of 17,000 square meters, subject has also two
branches in Hanoi City and Hochiminh City that
provide a flexible distribution system for the company. As a manufacturing
company, subject is producing the variety of coating products, including
coatings for wall with water systems and oil systems, general Alkyd resin,
paint, lacquer, varnish, wood preservative oil and so on…. Using the advanced
technology of Germany in the production process, currently its production
capacity is about 5,000 tons per year. Subject is the big paint producer in
the Central of Vietnam with more than 200 retailers across the country. It also obtains many awards such as Vietnam Gold
Star 2003 and 2005; Gold Medal International EXPO Vietbuild
2005; Gold Medal, Merit Fair Trade EXPO International 2004; Gold Medal Green
Week EXPO International 2003, Winning Brands Prestige to Customers in 2005,
and it is official member of Chamber of Commerce of Vietnam. Growth speed of the subject is good. In 2011,
revenue of the subject reached 70 billion, up 129% in comparison with 2010.
Costs of goods sold reduced strongly which accounted for 90%, 87% and 81% in
2009, 2010 and 2011 respectively. So its profitability was better than
before. During the 12 years of operation from 1999 to now, it has prestige in domestic market. The trade mark is well-known. Business activity is stable. However, its position is only average. No caution needed for the small financial commitments. Needed guarantee with the medium deals. |
------------ APPENDIX ----------
INDUSTRY DATA
|
||||||
|
|
||||||
|
Industry code |
Growth speed by
price compared with 1994 (%) |
Total
enterprises 2010 |
Total employees
2011 (Thous.pers.) |
Annual average
capital of enterprises 2010 (billion dongs) |
||
|
2011 |
2010 |
|||||
|
Agriculture,
Forestry and Fishing |
4.00 |
2.78 |
8,887 |
24,362.9 |
95,227 |
|
|
Industry and
Construction |
5.53 |
7.70 |
95,217 |
10,718.9 |
3,641,376 |
|
|
Trade and
Services |
6.69 |
7.52 |
187,195 |
15,270.2 |
6,957,082 |
|
|
|
||||||
ECONOMIC INDICATORS
|
||||||
|
|
||||||
|
|
2011 |
2010 |
2009 |
|||
|
Population (Million person) |
87.84 |
86.93 |
86.02 |
|||
|
Gross Domestic Products (USD
billion) |
119 |
102.2 |
91 |
|||
|
GDP Growth (%) |
5.89 |
6.78 |
5.32 |
|||
|
GDP Per Capita (USD/person/year) |
1,300 |
1,160 |
1,080 |
|||
|
Inflation (% Change in
Composite CPI) |
18.58 |
11.75 |
6.88 |
|||
|
State Budget Deficit compared
with GDP (%) |
4.9 |
5.8 |
6.9 |
|||
|
|
||||||
SERVICE TRADE PERFORMANCE
|
||||||
|
|
||||||
|
Billion USD |
2011 |
2010 |
2009 |
|||
|
Exports |
96.3 |
72.2 |
57.1 |
|||
|
Imports |
105.8 |
84.8 |
69.9 |
|||
|
Trade Balance |
-9.5 |
-12.6 |
-12.8 |
|||
Source: General
Statistics Office
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.54 |
|
|
1 |
Rs.87.69 |
|
Euro |
1 |
Rs.72.85 |
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.