MIRA
INFORM REPORT
|
Report Date : |
28.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
NAWANI COMPANY LIMITED |
|
|
|
|
Registered Office : |
21st
Floor, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
03.07.1990 |
|
|
|
|
Com. Reg. No.: |
0105533077013 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Trading Company of Foods and Consumer Products |
|
|
|
|
No. of Employees : |
6 |
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 but correct |
|
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
NAWANI
COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 21st FLOOR,
SSP TOWER,
555/59 SOI
SUKHUMVIT 63 PEKAMAI],
SUKHUMVIT ROAD,
KLONGTONNUA,
WATTANA, BANGKOK
10110
TELEPHONE : [66] 2381-2318-21, 083
854-7771
FAX :
[66] 2381-2322
E-MAIL
ADDRESS : nawani@nawani.com
kmnawani@gmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1990
REGISTRATION
NO. : 0105533077013
TAX
ID NO. : 3101867428
CAPITAL REGISTERED : BHT. 140,000,000
CAPITAL PAID-UP : BHT.
140,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. KITTI NAWANI,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 6
LINES
OF BUSINESS : FOODS
AND CONSUMER PRODUCTS
TRADING COMPANY
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 July 3, 1990 as
a private limited
company under the
registered name NAWANI
COMPANY LIMITED by
Thai groups, with the
objective to be
engaged in trading
business of foods
and consumer goods.
It currently employs
6 staff.
The
subject’s registered address
is 21st Floor,
SSP Tower, 555/59
Soi Sukhumvit 63 [Ekamai], Sukhumvit Road, Klongtonnua,
Wattana, Bangkok 10110, and this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kitti Nawani |
|
Thai |
65 |
|
Mrs. Buppha Nawani |
|
Thai |
61 |
|
Mr. Kenney Nawani |
|
Thai |
39 |
|
Mr. Gris Nawani |
|
Thai |
37 |
|
Ms. Katty Nawani |
|
Thai |
33 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Kitti Nawani is
the Managing Director.
He is Thai
nationality with the
age of 65 years
old.
BUSINESS OPERATIONS
The subject
is engaged in
trading business to
import, distribute and
export various kinds of
foods and consumer products,
e.g. Thai rice,
beans, dried foods, betal nuts,
fresh ginger, sweet tamarind, sour tamarind, cosmetics &
hygiene products, health care
products, confectioneries, perfumes,
Thai sauces, canned
foods, snacks, canned
fruit juices and etc.
PURCHASE
The
products are purchased
from suppliers both
domestic and overseas,
mainly in Republic
of China, Malaysia,
India and Korea.
SALES
The products are
sold to customers
both local and
overseas, mainly in
India,
Hong Kong, Indonesia,
Philippines, Malaysia and
Brunei.
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 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 area against
T/T.
BANKING
Kasikornbank
Public Co., Ltd.
[Head
office, 1 Kasikorn
lane, Ratburana Road,
Eatburana, Bangkok 10140.]
EMPLOYMENT
The
subject currently employs
6 staff.
LOCATION DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in commercial/residential area.
COMMENT
Subject
operates a trading
business for foods
and consumer goods.
Subject reported slow
sales in the year
2012 compared to
the previous years. Most
of the products are
foods
which mainly served
to general consumers.
Its business is
fluctuated depending upon
market conditions.
FINANCIAL INFORMATION
The capital was
registered at Bht. 10,000,000 divided
into 100,000 shares of
Bht. 100 each
with fully paid.
The
capital was increased
later as follows:
Bht. 30,000,000
on January 3,
1996
Bht. 100,000,000
on September 12, 2002
Bht. 140,000,000
on May 12,
2011
The
latest registered capital
was increased to
Bht. 140,000,000 divided
into 1,400,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Kenney Nawani Nationality: Thai Address : 12/5
Soi Sukhumvit 33,
Klongtonnua,
Wattana, Bangkok |
466,666 |
33.34 |
|
Mr. Gris Nawani Nationality: Thai Address : 12/5
Soi Sukhumvit 33,
Klongtonnua,
Wattana, Bangkok |
466,665 |
33.33 |
|
Ms. Katty Nawani Nationality: Thai Address : 12/5
Soi Sukhumvit 33,
Klongtonnua,
Wattana, Bangkok |
466,665 |
33.33 |
|
Mr. Kitti Nawani Nationality: Thai Address : 12/5
Soi Sukhumvit 33,
Klongtonnua,
Wattana, Bangkok |
1 |
- |
|
Mrs. Buppha Nawani Nationality: Thai Address : 12/5
Soi Sukhumvit 33,
Klongtonnua,
Wattana, Bangkok |
1 |
- |
|
|
|
|
|
Mr. Nawin Nawani Nationality: Indian Address : 12/5
Soi Sukhumvit 33,
Klongtonnua,
Wattana, Bangkok |
1 |
- |
|
Mrs. Thanyathip Poolkes Nationality: Thai Address : 55/126
Moo 1, Bangbuathong, Bangbuathong, Nonthaburi |
1 |
- |
Total Shareholders : 7
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
1,399,999 |
100.00 |
|
Foreign - Indian |
1 |
1 |
- |
|
Total |
7 |
1,400,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Somjai Kiatpadungkul No.
9360
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 |
668,252.17 |
43,500.82 |
4,769.40 |
|
Short-term Investment |
52,550,307.84 |
- |
- |
|
Trade Accounts & Other Receivable
|
5,014,786.60 |
3,871,214.56 |
2,741,198.68 |
|
Inventories |
534,940.00 |
- |
5,174,141.00 |
|
Revenue Department Receivable |
980,593.88 |
600,777.47 |
942,830.94 |
|
Other Current Assets
|
191,235.05 |
190,022.28 |
1,004,041.85 |
|
|
|
|
|
|
Total Current Assets
|
59,940,115.54 |
4,705,515.13 |
9,866,981.87 |
|
Fixed Deposit at
Financial Institution |
- |
65,668,250.00 |
66,393,810.63 |
|
Investment in Subsidiary & Associated Company |
20,500,000.00 |
20,500,000.00 |
20,499,900.00 |
|
Long-term Lending to Related
Company |
3,490,401.85 |
3,490,401.85 |
5,536,250.21 |
|
Real Estate for
Investment |
31,177,339.33 |
27,055,761.38 |
- |
|
Fixed Assets |
44,251,611.77 |
15,839,870.20 |
23,014,021.38 |
|
Intangible Assets |
13,489.25 |
1,182.35 |
7,514.72 |
|
Other Non-current Assets |
9,100.00 |
9,100.00 |
14,900.00 |
|
Total Assets |
159,382,057.74 |
137,270,080.91 |
125,333,378.81 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institutions |
23,429,280.55 |
17,875,361.41 |
25,529,578.36 |
|
Trade Accounts & Other
Payable |
742,579.49 |
2,116,175.76 |
173,862.00 |
|
Accrued Income Tax |
- |
12,911.54 |
- |
|
Current Portion of
Hire-purchase Contract Liabilities |
149,769.17 |
272,872.42 |
363,876.00 |
|
Current Portion of
Long-term Loans |
771,835.75 |
- |
- |
|
Other Current Liabilities |
126,592.85 |
31,671.09 |
2,343,245.79 |
|
|
|
|
|
|
Total Current Liabilities |
25,220,057.81 |
20,308,992.22 |
28,410,562.15 |
|
Long-term Loan from Related Person |
284,419.71 |
483,200.47 |
19,143,473.47 |
|
Hire-purchase Payable |
109,204.06 |
258,973.15 |
492,574.43 |
|
Long-term Loan |
18,787,996.27 |
- |
- |
|
Total Liabilities |
44,401,677.85 |
21,051,165.84 |
48,046,610.05 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,400,000 shares in
2012 & 2011;
1,000,000 shares
in 2010 |
140,000,000.00 |
140,000,000.00 |
100,000,000.00 |
|
|
|
|
|
|
Capital Paid |
140,000,000.00 |
140,000,000.00 |
100,000,000.00 |
|
Unrealized Profit from
Investment in Securities available for Sale |
1,447.08 |
- |
- |
|
Retained Earning Unappropriated |
[25,021,067.19] |
[23,781,084.93] |
[22,713,231.24] |
|
Total Shareholders' Equity |
114,980,379.89 |
116,218,915.07 |
77,286,768.76 |
|
Total Liabilities &
Shareholders' Equity |
159,382,057.74 |
137,270,080.91 |
125,333,378.81 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
66,808,915.43 |
102,901,230.10 |
114,010,894.83 |
|
Other Income |
6,378,909.34 |
2,696,059.59 |
2,885,077.43 |
|
Total Revenues |
73,187,824.77 |
105,597,289.69 |
116,895,972.26 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
58,304,698.66 |
90,840,062.16 |
100,504,957.22 |
|
Selling Expenses |
4,636,914.73 |
7,033,469.32 |
10,627,661.46 |
|
Administrative Expenses |
9,668,403.30 |
7,840,866.70 |
10,397,040.15 |
|
Total Expenses |
72,610,016.69 |
105,714,398.18 |
121,529,658.83 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
577,808.08 |
[117,108.49 |
[4,633,686.57] |
|
Financial Costs |
[1,724,415.16] |
[922,333.66 |
[582,508.85] |
|
|
|
|
|
|
Profit / [Loss] before Income
Tax |
[1,146,607.08] |
[1,039,442.15] |
[5,216,195.42] |
|
Income Tax |
[93,375.18] |
[28,411.54] |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
[1,239,982.26] |
[1,067,853.69] |
[5,216,195.42] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.38 |
0.23 |
0.35 |
|
QUICK RATIO |
TIMES |
2.31 |
0.19 |
0.10 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.51 |
6.50 |
4.95 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.42 |
0.75 |
0.91 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
3.35 |
- |
18.79 |
|
INVENTORY TURNOVER |
TIMES |
108.99 |
- |
19.42 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
27.40 |
13.73 |
8.78 |
|
RECEIVABLES TURNOVER |
TIMES |
13.32 |
26.58 |
41.59 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
4.65 |
8.50 |
0.63 |
|
CASH CONVERSION CYCLE |
DAYS |
26.10 |
5.23 |
26.94 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
87.27 |
88.28 |
88.15 |
|
SELLING & ADMINISTRATION |
% |
21.41 |
14.45 |
18.44 |
|
INTEREST |
% |
2.58 |
0.90 |
0.51 |
|
GROSS PROFIT MARGIN |
% |
22.28 |
14.34 |
14.38 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.86 |
(0.11) |
(4.06) |
|
NET PROFIT MARGIN |
% |
(1.86) |
(1.04) |
(4.58) |
|
RETURN ON EQUITY |
% |
(1.08) |
(0.92) |
(6.75) |
|
RETURN ON ASSET |
% |
(0.78) |
(0.78) |
(4.16) |
|
EARNING PER SHARE |
BAHT |
(0.89) |
(0.76) |
(5.22) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.28 |
0.15 |
0.38 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.39 |
0.18 |
0.62 |
|
TIME INTEREST EARNED |
TIMES |
0.34 |
(0.13) |
(7.95) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(35.07) |
(9.74) |
|
|
OPERATING PROFIT |
% |
(593.40) |
(97.47) |
|
|
NET PROFIT |
% |
(16.12) |
79.53 |
|
|
FIXED ASSETS |
% |
179.37 |
(31.17) |
|
|
TOTAL ASSETS |
% |
16.11 |
9.52 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -35.07%. Turnover has decreased from THB
102,901,230.10 in 2011 to THB 66,808,915.43 in 2012. While net profit has
decreased from THB -1,067,853.69 in 2011 to THB -1,239,982.26 in 2012. And
total assets has increased from THB 137,270,080.91 in 2011 to THB
159,382,057.74 in 2012.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
22.28 |
Impressive |
Industrial
Average |
17.01 |
|
Net Profit Margin |
(1.86) |
Deteriorated |
Industrial
Average |
1.77 |
|
Return on Assets |
(0.78) |
Deteriorated |
Industrial
Average |
6.49 |
|
Return on Equity |
(1.08) |
Deteriorated |
Industrial
Average |
18.53 |
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 22.28%. 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 -1.86%.
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 -0.78%.
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 -1.08%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
EXCELLENT
LIQUIDITY RATIO
|
Current Ratio |
2.38 |
Impressive |
Industrial
Average |
1.17 |
|
Quick Ratio |
2.31 |
|
|
|
|
Cash Conversion Cycle |
26.10 |
|
|
|
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 2.38 times in 2012, increased from 0.23 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 2.31 times in 2012,
increased from 0.19 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 27 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
SATISFACTORY
LEVERAGE RATIO
|
Debt Ratio |
0.28 |
Impressive |
Industrial
Average |
0.64 |
|
Debt to Equity Ratio |
0.39 |
Impressive |
Industrial
Average |
1.77 |
|
Times Interest Earned |
0.34 |
Risky |
Industrial
Average |
0.86 |
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 0.34 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 0.28 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 |
1.51 |
Deteriorated |
Industrial
Average |
4.12 |
|
Total Assets Turnover |
0.42 |
Deteriorated |
Industrial
Average |
3.77 |
|
Inventory Conversion Period |
3.35 |
|
|
|
|
Inventory Turnover |
108.99 |
Impressive |
Industrial
Average |
11.58 |
|
Receivables Conversion Period |
27.40 |
|
|
|
|
Receivables Turnover |
13.32 |
Impressive |
Industrial
Average |
5.83 |
|
Payables Conversion Period |
4.65 |
|
|
|
The company's Account Receivable Ratio is calculated as 13.32 and 26.58
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 0 days at the end
of 2011 to 3 days at the end of 2012. This represents a negative trend. And
Inventory turnover has increased from 0 times in year 2011 to 108.99 times in
year 2012.
The company's Total Asset Turnover is calculated as 0.42 times and 0.75
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.59.70 |
|
|
1 |
Rs.92.25 |
|
Euro |
1 |
Rs.78.38 |
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.