MIRA
INFORM REPORT
|
Report Date : |
05.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
S.P. WIRES AND CABLES COMPANY LIMITED |
|
|
|
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Registered Office : |
111/23, 113/22 Boromratchonnee Road, Aroon Amarin, Bangkoknoi, Bangkok 10700 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
09.04.1981 |
|
|
|
|
Com. Reg. No.: |
0105524007822 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer & Distributor of Electrical Equipment |
|
|
|
|
No. of Employees : |
40 |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 achieved steady growth due largely to industrial and agriculture
exports - mostly electronics, agricultural commodities, automobiles and parts,
and processed foods. Thailand is trying to maintain growth by encouraging
domestic consumption and public investment to offset weak exports in 2012.
Unemployment, at less than 1% of the labor force, stands as one of the lowest levels
in the world, which puts upward pressure on wages in some industries. Thailand
also attracts nearly 2.5 million migrant workers from neighboring countries.
The Thai government is implementing a nation-wide 300 baht ($10) per day
minimum wage policy and deploying new tax reforms designed to lower rates on
middle-income earners. The Thai economy has weathered internal and external
economic shocks in recent years. The global economic severely cut Thailand's
exports, with most sectors experiencing double-digit drops. In 2009, the
economy contracted 2.3%. However, in 2010, Thailand's economy expanded 7.8%,
its fastest pace since 1995, as exports rebounded. In late 2011 growth was
interrupted by historic flooding in the industrial areas in Bangkok and its five
surrounding provinces, crippling the manufacturing sector. Industry recovered
from the second quarter of 2012 onward with GDP growth at 5.5% in 2012. The
government has approved flood mitigation projects worth $11.7 billion, which
were started in 2012, to prevent similar economic damage, and an additional $75
billion for infrastructure over the next seven years with a plan to start in
2013.
Source
: CIA
Company name
S.P.
WIRES AND CABLES
COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 111/23, 113/22
BOROMRATCHONNEE ROAD,
AROON AMARIN,
BANGKOKNOI,
BANGKOK 10700
TELEPHONE : [66] 2434-0099,
081 711-8225
FAX :
[66] 2434-3251,
2884-9644
E-MAIL
ADDRESS : spwires@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1981
REGISTRATION
NO. : 0105524007822 [Former: 782/2524]
TAX
ID NO. : 3101128789
CAPITAL REGISTERED : BHT. 2,000,000
CAPITAL PAID-UP : BHT.
2,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
VICHAI WANGPREECHACHARN, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 40
LINES
OF BUSINESS : ELECTRICAL EQUIPMENT
IMPORTER &
DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on April 9,
1981 as a
private limited company
under the name style
S.P. WIRES AND CABLES
COMPANY LIMITED by Thai groups, to distribute wide
range of electrical
equipment to local
market. It currently
employs approximately 40
staff.
The subject’s registered
address is 111/23, 113/22 Boromratchonnee Rd., Aroon
Amarin, Bangkoknoi, Bangkok 10700, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms.
Suvimol Singhawangcha |
|
Thai |
66 |
|
Ms.
Piyaporn Kunawat |
|
Thai |
58 |
|
Mr.
Vichai Wangpreechacharn |
[x] |
Thai |
58 |
AUTHORIZED PERSON
The
mentioned director [x]
can sign on
behalf of the subject with
company’s affixed.
MANAGEMENT
Mr.
Vichai Wangpreechacharn is
the Managing Director.
He
is Thai nationality
with the age
of 58 years
old.
Ms.
Piyaporn Kunawat is the General
Manager.
She
is Thai nationality
with the age
of 58 years
old.
BUSINESS OPERATIONS
The subject’s activity
is a distributor various
kinds of electrical equipments
especially wire and
cables such as
electronic & computer
cables, control cables,
flat cables, lift
control cables, rubber
cables for drum
reeling, flexible rubber
control cables, screen
twisted pairs cables,
PVC control cables, motor
circuit breaker as well
as electric wires,
power breaker, control
switches, control relay,
proximity switch, limit
switch, motor starters, terminal blocks
transformers, control equipment,
circuit breaker and
related equipments.
MAJOR BRANDS
SIEMENS, FUJI, YAZAKI,
PIRELLI, ABB, MITSUBISHI,
HITACHI, SQUARE-D, HPM,
KABELTEC, “MKM”, “NKT”,
“PRYSMIAN” and etc.
PURCHASE
The products are
purchased from local
and overseas suppliers
in Japan, Germany,
Italy, United States
of America, Republic
of China, Korea,
Taiwan and Singapore.
MAJOR SUPPLIERS
Siemens GmbH : Thailand
Thai Yazaki Electric
Wire Co., Ltd. : Thailand
Fuji Electric Ltd. : Japan
ABB Ltd. : Thailand
HPM Cable Electric
GmbH : Germany
Pirell & C. S.p.A. : Italy
Kabeltec GmbH : Germany
SALES [LOCAL]
100% of its
products is sold
locally by wholesale
to dealers and
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
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
credits term of
30-60 days.
Local bills are paid
on the credits
term of 30-60
days.
Imports are by
L/C on the credits
term of 30-60
days or T/T.
BANKING
Kasikornbank Public Co.,
Ltd.
[Bangkhen Branch : 1 Kasikorn Lane,
Rajburana Rd., Rajburana,
Bangkok 10140]
Bangkok Bank Public
Co., Ltd.
[Samyod Branch :
88-90-92, Charoenkrung Rd.,
Wangburapa, Phranakorn,
Bangkok 10200]
EMPLOYMENT
The subject employs
approximately 40 staff.
[office and sales
staff]
LOCATION DETAILS
The premise is owned
for administrative office
and warehouse in
a 3 storey
building of 2
row shop houses at the
heading address. Premise
is located in
commercial/residential area.
COMMENT
The overall
positive outlook of domestic industry
would boost revenue of the subject from its sales. The
subject’s products have been well performed
in the industrial
area of controlling
electrical units as
well as handle
all aspects involved
in entire electrical
wiring.
FINANCIAL INFORMATION
The capital was
registered at Bht. 1,000,000 divided
into 10,000 shares of
Bht. 100 each with
fully paid.
On August 23,
1982, the capital
was increased to
Bht. 2,000,000 divided into
20,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED
WERE : [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
Mr. Vichai Wangpreechacharn Nationality: Thai Address : 364 Mahachak
Rd., Pomprab,
Pomprabsattrupai, Bangkok |
10,000 |
50.00 |
|
Mr. Nitipol Wangpreechacharn Nationality: Thai Address : 618/336 Boromratchonnee Rd.,
Bangbamru, Bangplad, Bangkok |
4,500 |
22.50 |
|
Mrs. Piyaporn Wangpreechacharn Nationality: Thai Address : 111/23,
113/22 Boromratchonnee Rd.,
Aroon
Amarin, Bangkoknoi, Bangkok |
4,000 |
20.00 |
|
Ms. Suvimol Singhawangcha Nationality: Thai Address : 98/232-235 Moo 6,
Rama 2 Rd., Samaedam,
Bangkhunthien, Bangkok |
1,500 |
7.50 |
Total Shareholders : 4
Share Structure [as
at April 30,
2013]
|
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 :
Mr. Ritthirong Karanyaviroon
No. 3824
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
16,532,244.37 |
5,546,044.20 |
12,664,638.07 |
|
Short-term Investment |
131,808,354.54 |
92,326,352.32 |
60,014,550.52 |
|
Trade Accounts and
Other Receivable |
44,576,844.43 |
38,999,830.44 |
31,715,341.91 |
|
Inventories |
101,563,810.31 |
102,292,138.12 |
106,178,978.31 |
|
|
|
|
|
|
Total Current Assets
|
294,481,253.65 |
239,164,365.08 |
210,573,508.81 |
|
|
|
|
|
|
Fixed Assets |
6,625,752.02 |
8,470,804.35 |
4,602,089.64 |
|
Other Non - current Assets
|
133,638.84 |
156,264.91 |
283,182.90 |
|
Total Assets |
301,240,644.51 |
247,791,434.34 |
215,458,781.35 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
9,337,168.67 |
2,788,871.60 |
- |
|
Trade Accounts and
Other Payable |
9,639,850.08 |
7,248,175.52 |
6,628,777.25 |
|
Accrued Expenses |
6,485,862.33 |
7,416,927.05 |
8,016,898.96 |
|
Current Portion of
Financial Lease Contract Liabilities |
500,590.13 |
516,459.96 |
- |
|
Accrued Income Tax |
7,332,501.79 |
6,763,075.99 |
6,086,744.05 |
|
|
|
|
|
|
Total Current Liabilities |
33,295,973.00 |
24,733,510.12 |
20,732,420.26 |
|
Financial Lease Contract Liabilities |
1,352,582.42 |
1,764,571.73 |
- |
|
Total Liabilities |
34,648,555.42 |
26,498,081.85 |
20,732,420.26 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 20,000 shares |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
|
|
|
|
|
Capital Paid |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
Retained Earning Unappropriated |
264,071,189.09 |
219,230,982.49 |
192,726,361.09 |
|
Other Components of Shareholder Equity |
520,900.00 |
62,370.00 |
- |
|
Total Shareholders' Equity |
266,592,089.09 |
221,293,352.49 |
194,726,361.09 |
|
Total Liabilities & Shareholders' Equity |
301,240,644.51 |
247,791,434.34 |
215,458,781.35 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
223,967,293.62 |
187,834,268.49 |
174,680,325.54 |
|
Other Income |
4,268,598.71 |
2,728,695.72 |
1,379,324.10 |
|
Total Revenues |
228,235,892.33 |
190,562,964.21 |
176,059,649.64 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
128,528,398.99 |
113,607,108.85 |
106,222,036.05 |
|
Selling Expenses |
15,942,418.99 |
16,130,892.91 |
16,522,207.03 |
|
Administrative Expenses |
24,355,557.53 |
23,126,288.85 |
21,649,023.49 |
|
Other Expenses |
821,655.67 |
- |
1,363,791.80 |
|
Total Expenses |
169,648,031.18 |
152,864,290.61 |
145,757,058.37 |
|
|
|
|
|
|
Profit before Financial Cost & Income
Tax |
58,587,861.15 |
37,698,673.60 |
30,302,591.27 |
|
Financial Costs |
[204,402.76] |
[52,413.69] |
[33,147.39] |
|
Profit / [Loss] before Income
Tax |
58,383,458.39 |
37,646,259.91 |
30,269,443.88 |
|
Income Tax |
[13,543,251.79] |
[11,141,638.51] |
[8,815,179.45] |
|
|
|
|
|
|
Net Profit / [Loss] |
44,840,206.60 |
26,504,621.40 |
21,454,264.43 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
8.84 |
9.67 |
10.16 |
|
QUICK RATIO |
TIMES |
5.79 |
5.53 |
5.04 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
33.80 |
22.17 |
37.96 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.74 |
0.76 |
0.81 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
288.42 |
328.65 |
364.85 |
|
INVENTORY TURNOVER |
TIMES |
1.27 |
1.11 |
1.00 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
72.65 |
75.78 |
66.27 |
|
RECEIVABLES TURNOVER |
TIMES |
5.02 |
4.82 |
5.51 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
27.38 |
23.29 |
22.78 |
|
CASH CONVERSION CYCLE |
DAYS |
333.70 |
381.14 |
408.34 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
57.39 |
60.48 |
60.81 |
|
SELLING & ADMINISTRATION |
% |
17.99 |
20.90 |
21.85 |
|
INTEREST |
% |
0.09 |
0.03 |
0.02 |
|
GROSS PROFIT MARGIN |
% |
44.52 |
40.97 |
39.98 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
26.16 |
20.07 |
17.35 |
|
NET PROFIT MARGIN |
% |
20.02 |
14.11 |
12.28 |
|
RETURN ON EQUITY |
% |
16.82 |
11.98 |
11.02 |
|
RETURN ON ASSET |
% |
14.89 |
10.70 |
9.96 |
|
EARNING PER SHARE |
BAHT |
2,242.01 |
1,325.23 |
1,072.71 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.12 |
0.11 |
0.10 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.13 |
0.12 |
0.11 |
|
TIME INTEREST EARNED |
TIMES |
286.63 |
719.25 |
914.18 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
19.24 |
7.53 |
|
|
OPERATING PROFIT |
% |
55.41 |
24.41 |
|
|
NET PROFIT |
% |
69.18 |
23.54 |
|
|
FIXED ASSETS |
% |
(21.78) |
84.06 |
|
|
TOTAL ASSETS |
% |
21.57 |
15.01 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 19.24%. Turnover has increased from THB
187,834,268.49 in 2011 to THB 223,967,293.62 in 2012. While net profit has
increased from THB 26,504,621.40 in 2011 to THB 44,840,206.60 in 2012. And
total assets has increased from THB 247,791,434.34 in 2011 to THB
301,240,644.51 in 2012.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
44.52 |
Satisfactory |
Industrial
Average |
45.39 |
|
Net Profit Margin |
20.02 |
Impressive |
Industrial
Average |
1.96 |
|
Return on Assets |
14.89 |
Impressive |
Industrial
Average |
4.55 |
|
Return on Equity |
16.82 |
Impressive |
Industrial
Average |
12.98 |
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 44.52%. When
compared with the industry average, the ratio of the company was lower. This
indicated that company may have 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 20.02%, 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
14.89%, 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 16.82%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profits 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 :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
8.84 |
Impressive |
Industrial Average |
1.47 |
|
Quick Ratio |
5.79 |
|
|
|
|
Cash Conversion Cycle |
333.70 |
|
|
|
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 8.84 times in 2012, decreased from 9.67 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 5.79 times in 2012,
increased from 5.53 times, although excluding inventory so the company still
have good short-term financial strength.
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 334 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.12 |
Impressive |
Industrial
Average |
0.64 |
|
Debt to Equity Ratio |
0.13 |
Impressive |
Industrial
Average |
1.77 |
|
Times Interest Earned |
286.63 |
Impressive |
Industrial
Average |
1.26 |
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 286.63 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 0.12 less than 0.5, most of the company's
assets are financed through equity.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Downtrend
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
33.80 |
Impressive |
Industrial
Average |
2.24 |
|
Total Assets Turnover |
0.74 |
Deteriorated |
Industrial
Average |
2.32 |
|
Inventory Conversion Period |
288.42 |
|
|
|
|
Inventory Turnover |
1.27 |
Deteriorated |
Industrial
Average |
6.01 |
|
Receivables Conversion Period |
72.65 |
|
|
|
|
Receivables Turnover |
5.02 |
Impressive |
Industrial
Average |
3.86 |
|
Payables Conversion Period |
27.38 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.02 and 4.82 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
increased from 2011. This would suggest the company had good performance 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 decreased from 329 days at the
end of 2011 to 288 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 1.11 times in year 2011 to 1.27 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.74 times and 0.76
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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.09 |
|
|
1 |
Rs.91.58 |
|
Euro |
1 |
Rs.78.08 |
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.