MIRA
INFORM REPORT
|
Report Date : |
15.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
TACHING COTTON THAI CO., LTD. |
|
|
|
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Registered Office : |
55/15 Moo 3, Rama 2 Road, T. Nadee, A. Muang, Samutsakorn 74000 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
07.03.2000 |
|
|
|
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Com. Reg. No.: |
0105543023439 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor and
Exporter of Cotton Yarns |
|
|
|
|
No. of Employees : |
200 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Poor |
|
|
|
|
Payment Behaviour : |
Slow |
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|
|
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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 – 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
TACHING COTTON THAI CO., LTD.
SUMMARY
BUSINESS ADDRESS : 626 SOI TONPO,
CHAROENKRUNG 109 [YAEK 16],
CHAROENKRUNG ROAD,
BANGKORLAEM,
BANGKOK 10120,
THAILAND
TELEPHONE : [66] 2291-8001-7
FAX : [66] 2291-8109
E-MAIL ADDRESS : info@taching.com
REGISTRATION ADDRESS : 55/15 MOO 3, RAMA
2 ROAD, T. NADEE,
A.
MUANG, SAMUTSAKORN 74000,
THAILAND
ESTABLISHED : 2000
REGISTRATION NO. : 0105543023439
TAX ID NO. : 3751026152
CAPITAL REGISTERED : BHT.
580,000,000
CAPITAL PAID-UP : BHT.
530,000,000
SHAREHOLDER’S PROPORTION : THAI
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
MANA UA-TARNPISITH, THAI
MANAGING DIRECTOR
NO. OF STAFF : 200
LINES OF BUSINESS : COTTON YARNS
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
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 March
7, 2000 as
a private limited
company under the registered
name TACHING COTTON
THAI CO., LTD.,
by Thai groups, with
the business objective
to manufacture and
distribute cotton yarns
for textile industry
to both domestic
and overseas markets.
It currently employs
approximately 200 staff.
The subject’s registered
address is 55/15 Moo
3, Rama 2
Rd., T. Nadee, A. Muang,
Samutsakorn 74000, while the current
operation address is
626 Soi Tonpo,
Charoenkrung 109 [Yaek 16], Charoenkrung
Rd., Bangkorlaem, Bangkok
10120.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Mana Ua-tarnpisith |
|
Thai |
64 |
|
Mrs. Kornpimol Ua-tarnpisith |
|
Thai |
66 |
|
Mr. Withaya Ua-tarnpisith |
|
Thai |
36 |
|
Mr. Pisith [Anake] Ua-tarnpisith |
|
Thai |
33 |
Note:
Mr. Anake Ua-tarnpisith changed
his name to Mr.
Pisith Ua-tarnpisith on
April 4, 2012.
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Mana Ua-tarnpisith is
the Managing Director.
He is Thai
nationality with the
age of 64
years old.
Mr. Pisith Ua-tarnpisith is
the General Manager
and Factory Manager.
He is Thai
nationality with the
age of 33
years old.
BUSINESS OPERATIONS
The subject is engaged in
manufacturing, distributing and
exporting of 100% cotton yarns
for textile industry.
PRODUCTION CAPACITY
9,600 tons per
annum
PURCHASE
Raw cotton and
chemicals are purchased
from suppliers both
domestic and overseas,
mainly in India,
Republic of China
and Australia.
SALES
90% of the
products is sold
locally by wholesale
to manufacturers and
end-users, the remaining
10% is exported
to Republic of
China, Indonesia and
the countries in
Europe.
RELATED AND AFFILIATED COMPANY
Saha Taching Polytex
Co., Ltd.
Business Type :
Spinning and dyeing
mill for 100%
polyester yarn
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 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.
Imports are by
T/T on negotiated
terms.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
The Siam Commercial
Bank Public Co.,
Ltd.
EMPLOYMENT
The subject currently
employs approximately 200
office staff and
factory workers.
LOCATION DETAILS
The premise is
owned for administrative office
at the heading
address. Premise is located in
commercial/residential area.
Factory and warehouse
are located at 55/15
Moo 3, Rama
2 Rd., T. Nadee,
A. Muang, Samutsakorn 74000.
Tel. : [66] 34 413-223-4,
Fax. : [66] 34 413-225.
COMMENT
The subject is
the leading cotton
yarn spinning for
textile industry. Subject
has strong production capability in
order to serve the
customer with high
technology processing.
The global textile
industry has witnessed
an uptrend. Increased consumption of cotton
yarn and threads
has contributed significantly improved
the subject’s financial
result for the year.
FINANCIAL INFORMATION
The capital was
registered at Bht.
80,000,000 divided into
80,000 shares of
Bht. 1,000 each.
The capital was
increased later as
follows:
Bht. 380,000,000
on April 23,
2003
Bht. 580,000,000
on June 28,
2005
The latest registered
capital was increased
to Bht. 580,000,000 divided
into 580,000 shares
of Bht. 1,000 each,
with the current
capital paid-up at
Bht. 530,000,000.
THE SHAREHOLDERS LISTED WERE
[as at
April 30, 2013]
at Bht. 530,000,000
of capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Mana Ua-tarnpisith Nationality: Thai Address : 626/2 Soi Tonpo, Charoenkrung 109
[Yaek16],
Charoenkrung Rd.,
Bangkorlaem, Bangkok |
282,000 |
48.62 |
|
Mrs. Kornpimol Ua-tarnpisith Nationality: Thai Address : 626/2 Soi Tonpo, Charoenkrung 109
[Yaek16], Charoenkrung Rd., Bangkorlaem, Bangkok |
178,000 |
30.69 |
|
Saha Taching Polytex
Co., Ltd. Nationality: Thai Address : 149
Moo 5, T. Thasai,
A. Muang, Samutsakorn |
100,001 |
17.24 |
|
Mr. Withaya Ua-tarnpisith Nationality: Thai Address : 626/2 Soi Tonpo, Charoenkrung 109
[Yaek16],
Charoenkrung Rd.,
Bangkorlaem, Bangkok |
6,400 |
1.10 |
|
Mr. Chuan Ua-tarnpisith Nationality: Thai Address : 626/2 Soi Tonpo, Charoenkrung 109
[Yaek16], Charoenkrung Rd., Bangkorlaem, Bangkok |
6,400 |
1.10 |
|
Mr. Pisith Ua-tarnpisith Nationality: Thai Address : 626/2 Soi Tonpo, Charoenkrung 109
[Yaek16],
Charoenkrung Rd.,
Bangkorlaem, Bangkok |
6,400 |
1.10 |
|
Mr. Ekachai Ua-tarnpisith Nationality: Thai Address : 39
Soi Therdthai 23,
Bangyirua, Thonburi,
Bangkok |
799 |
0.15 |
Total Shareholders : 7
Share Structure
[as at April
30, 2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
580,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
580,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Paibul Cherdthamtorn No. 4851
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 |
474,791.54 |
319,038.11 |
662,721.52 |
|
Trade Accounts and
Other Receivable |
90,353,187.55 |
156,025,327.88 |
118,568,403.96 |
|
Inventories |
755,373,025.00 |
727,136,867.77 |
332,778,203.16 |
|
Other Current Assets
|
631,525.25 |
1,702,561.11 |
2,213,107.98 |
|
|
|
|
|
|
Total Current Assets
|
846,832,529.34 |
885,183,794.87 |
454,222,436.62 |
|
|
|
|
|
|
Fixed Assets |
348,539,762.07 |
392,734,149.55 |
388,801,699.63 |
|
Other Non - current Assets |
1,350,000.00 |
1,350,000.00 |
- |
|
Total Assets |
1,196,722,291.41 |
1,279,267,944.42 |
843,024,136.25 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
470,402,677.58 |
566,021,320.99 |
136,069,868.83 |
|
Trade Accounts and
Other Payable |
13,311,002.96 |
15,216,044.91 |
17,598,447.82 |
|
Other Current Liabilities |
2,401,698.16 |
1,892,171.70 |
2,615,133.77 |
|
|
|
|
|
|
Total Current Liabilities |
486,115,378.70 |
583,129,537.60 |
156,283,450.42 |
|
Long-term Loan from
Related Person |
240,426,049.67 |
220,385,678.72 |
201,400,716.86 |
|
Estimated Liabilities Employee
Benefits |
928,055.00 |
913,869.00 |
- |
|
Total Liabilities |
727,469,483.37 |
804,429,085.32 |
357,684,167.28 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share capital-common shares Baht
1,000 par value Authorized share
capital 580,000 shares |
580,000,000.00 |
580,000,000.00 |
580,000,000.00 |
|
Issued and
paid-up share capital 530,000
shares |
530,000,000.00 |
530,000,000.00 |
530,000,000.00 |
|
Retained Earning Unappropriated |
[60,747,191.96] |
[55,161,140.90] |
[44,660,031.03] |
|
Total Shareholders' Equity |
469,252,808.04 |
474,838,859.10 |
485,339,968.97 |
|
Total Liabilities & Shareholders' Equity |
1,196,722,291.41 |
1,279,267,944.42 |
843,024,136.25 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
601,088,578.35 |
573,266,602.98 |
784,264,937.39 |
|
Other Income |
18,841,277.48 |
62.15 |
6,092,711.05 |
|
Total Revenues |
619,929,855.83 |
573,266,665.13 |
790,357,648.44 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
603,256,183.24 |
541,377,141.28 |
742,593,974.95 |
|
Selling Expenses |
552,002.72 |
1,190,855.69 |
3,427,354.95 |
|
Administrative Expenses |
3,700,373.93 |
32,366,819.26 |
5,362,964.84 |
|
Total Expenses |
607,508,559.89 |
574,934,816.23 |
751,384,294.74 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income Tax |
12,421,295.94 |
[1,668,151.10] |
38,973,353.70 |
|
Financial Costs |
[18,007,347.00] |
[11,306,025.56] |
[5,716,574.34] |
|
Profit / [Loss] before Income
Tax |
[5,586,051.06] |
[12,974,176.66] |
33,256,779.36 |
|
Income Tax |
- |
- |
[3,678,395.73] |
|
|
|
|
|
|
Net Profit / [Loss] |
[5,586,051.06] |
[12,974,176.66] |
29,578,383.63 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.74 |
1.52 |
2.91 |
|
QUICK RATIO |
TIMES |
0.19 |
0.27 |
0.76 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.72 |
1.46 |
2.02 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.50 |
0.45 |
0.93 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
457.04 |
490.24 |
163.57 |
|
INVENTORY TURNOVER |
TIMES |
0.80 |
0.74 |
2.23 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
54.87 |
99.34 |
55.18 |
|
RECEIVABLES TURNOVER |
TIMES |
6.65 |
3.67 |
6.61 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
8.05 |
10.26 |
8.65 |
|
CASH CONVERSION CYCLE |
DAYS |
503.85 |
579.32 |
210.10 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
100.36 |
94.44 |
94.69 |
|
SELLING & ADMINISTRATION |
% |
0.71 |
5.85 |
1.12 |
|
INTEREST |
% |
3.00 |
1.97 |
0.73 |
|
GROSS PROFIT MARGIN |
% |
2.77 |
5.56 |
6.09 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.07 |
(0.29) |
4.97 |
|
NET PROFIT MARGIN |
% |
(0.93) |
(2.26) |
3.77 |
|
RETURN ON EQUITY |
% |
(1.19) |
(2.73) |
6.09 |
|
RETURN ON ASSET |
% |
(0.47) |
(1.01) |
3.51 |
|
EARNING PER SHARE |
BAHT |
(9.63) |
(22.37) |
51.00 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.61 |
0.63 |
0.42 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.55 |
1.69 |
0.74 |
|
TIME INTEREST EARNED |
TIMES |
0.69 |
(0.15) |
6.82 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
4.85 |
(26.90) |
|
|
OPERATING PROFIT |
% |
(844.61) |
(104.28) |
|
|
NET PROFIT |
% |
56.94 |
(143.86) |
|
|
FIXED ASSETS |
% |
(11.25) |
1.01 |
|
|
TOTAL ASSETS |
% |
(6.45) |
51.75 |
|
ANNUAL GROWTH : ACCEPTABLE
An annual sales growth is 4.85%. Turnover has increased from THB
573,266,602.98 in 2011 to THB 601,088,578.35 in 2012. While net profit has
increased from THB -12,974,176.66 in 2011 to THB -5,586,051.06 in 2012. And
total assets has decreased from THB 1,279,267,944.42 in 2011 to THB
1,196,722,291.41 in 2012.
PROFITABILITY : RISKY
PROFITABILITY RATIO
|
Gross Profit Margin |
2.77 |
Deteriorated |
Industrial Average |
14.74 |
|
Net Profit Margin |
(0.93) |
Deteriorated |
Industrial Average |
0.52 |
|
Return on Assets |
(0.47) |
Deteriorated |
Industrial Average |
0.64 |
|
Return on Equity |
(1.19) |
Deteriorated |
Industrial Average |
1.35 |
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 2.77%. 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 -0.93%.
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 -0.47%.
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 -1.19%.
Trend of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.74 |
Impressive |
Industrial Average |
1.14 |
|
Quick Ratio |
0.19 |
|
|
|
|
Cash Conversion Cycle |
503.85 |
|
|
|
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 1.74 times in 2012, increased from 1.52 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 0.19 times in 2012,
decreased from 0.27 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 504 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.61 |
Acceptable |
Industrial Average |
0.58 |
|
Debt to Equity Ratio |
1.55 |
Risky |
Industrial Average |
1.40 |
|
Times Interest Earned |
0.69 |
Risky |
Industrial Average |
1.37 |
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 0.69 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 0.61 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 |
1.72 |
Impressive |
Industrial Average |
0.63 |
|
Total Assets Turnover |
0.50 |
Deteriorated |
Industrial Average |
1.13 |
|
Inventory Conversion Period |
457.04 |
|
|
|
|
Inventory Turnover |
0.80 |
Deteriorated |
Industrial Average |
3.20 |
|
Receivables Conversion Period |
54.87 |
|
|
|
|
Receivables Turnover |
6.65 |
Impressive |
Industrial Average |
2.94 |
|
Payables Conversion Period |
8.05 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.65 and 3.67 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 490 days at the
end of 2011 to 457 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 0.74 times in year 2011 to 0.8 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.5 times and 0.45
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.57.74 |
|
|
1 |
Rs.90.64 |
|
Euro |
1 |
Rs.77.02 |
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.