MIRA INFORM REPORT
|
Report Date : |
21.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
OM DIAMOND CO., LTD. |
|
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Registered Office : |
28th Floor, Jewellery Trade Center, 919/352-353 Silom Road, Silom, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
10.09.1993 |
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|
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Com. Reg. No.: |
0105536103864 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Distributor & Exporter of Diamonds |
|
|
|
|
No. of Employees : |
04 |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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
OM DIAMOND
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 28th FLOOR,
JEWELLERY TRADE CENTER,
919/352-353 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2630-2700-2
FAX : [66] 2630-2700
E-MAIL
ADDRESS : omdiam@asianet.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1993
REGISTRATION
NO. : 0105536103864 [Former : 6960/2536]
TAX
ID NO. : 3011325476
CAPITAL REGISTERED : BHT. 20,000,000
CAPITAL PAID-UP : BHT.
20,000,000
SHAREHOLDER’S PROPORTION : THAI :
94.55%
INDIAN
: 5.45%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
DIPAK SHAH THANAWUTH,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 4
LINES
OF BUSINESS : DIAMONDS
IMPORTER, DISTRIBUTOR
& EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
LOW PERFORMANCE
HISTORY
The
subject was established on September
10, 1993 as
a private limited
company under the name
style OM DIAMOND
CO., LTD., by Thai
and Indian groups, in
order to import
and distribute diamonds
to both local
and overseas markets.
It currently employs
4 staff.
The
subject’s registered address is 28th Flr., Jewellery Trade
Center, 919/352-353 Silom Rd.,
Silom, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Dipak Shah Thanawuth |
|
Thai |
41 |
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Dipak Shah
Thanawuth is the
Managing Director.
He is Thai
nationality with the
age of 41
years old.
BUSINESS OPERATIONS
The subject is engaged
in importing, distributing
and exporting various
types and sizes
of diamonds, mainly
natural white diamonds
and natural color
diamonds.
PURCHASE
The
products are purchased
from both local
and overseas suppliers
mainly in India
and Africa.
DISTRIBUTION
The products are sold
by wholesale to traders
and jewelry manufacturers
in both domestic [80%] and overseas
countries [20%], such as Belgium, Australia, Japan, Hong Kong, Republic
of China, India,
United Kingdom, Italy,
U.S.A. and France.
RELATED COMPANY
DP Group and
Brothers Co., Ltd.
Business Type :
Distributor of diamonds
and jewelry products
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 by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BUSINESS TRANSACTION
The products are
sold to wholesalers and end-users
by credit, with the maximum credit given at
30-60 days. The
subject is not
found to have problem on
its account receivable.
BANKING
Bangkok
Bank Public Co., Ltd.
[Head Office : 333
Silom Rd., Silom,
Bangrak, Bangkok 10500]
EMPLOYMENT
The
subject employs 4
staff [office and
sales staff].
LOCATION DETAILS
The
premise is rented
for administrative office at
the heading address. Premise is
located in a
prime comme
rcial
area.
COMMENT
The
subject reported slow
sales in 2011
from slow consumption.
The overall jewelry
industry in domestic market seems
to enjoy growing
in the previous
year due to
growth in new
market like China and
Middle East countries. However,
the subject’s business
growth remains at slow
pace.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht. 2,000,000 divided
into 20,000 shares of
Bht. 100 each.
The
capital was increased
later as follows:
Bht. 5,000,000
on April 4, 1995
Bht. 11,000,000
on July 14, 1998
Bht. 20,000,000
on March 31,
2011
The
latest registered capital
was increased to
Bht. 20,000,000 divided into
200,000 shares of Bht.
100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Dipak Shah
Thanawuth Nationality: Thai Address : 101/8 Trok
Saphanyao, Siphaya, Bangrak, Bangkok
|
189,090 |
94.55 |
|
Mr. Kawan Prakash Shah Nationality: Indian Address : Mumbai, India |
10,000 |
5.00 |
|
Mr. Pallavi Grakash Shah Nationality: Indian Address : Mumbai, India |
910 |
0.45 |
Total Shareholders : 3
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
189,090 |
94.55 |
|
Foreign - Indian |
2 |
10,910 |
5.45 |
|
Total |
3 |
200,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Vasana Tanmongkol
No. 1888
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash and Cash
Equivalents |
200,243.29 |
249,976.82 |
248,435.14 |
|
Trade Accounts Receivable |
23,129,965.34 |
24,197,476.82 |
28,617,235.77 |
|
Inventories |
121,418,444.96 |
58,470,744.90 |
137,949,001.05 |
|
Other Current Assets
|
720,223.99 |
409,277.63 |
302,403.92 |
|
Total Current Assets
|
145,468,877.58 |
83,327,476.17 |
167,117,075.88 |
|
|
|
|
|
|
Fixed Assets |
2,818,695.06 |
3,162,494.05 |
3,473,004.31 |
|
Non-current Assets |
|
|
|
|
Cash at Bank Pledged as
a Collateral |
6,000,000.00 |
6,000,000.00 |
- |
|
Other Assets |
15,234.58 |
14,434.58 |
13,500.00 |
|
Total Assets |
154,302,807.22 |
92,504,404.80 |
170,603,580.19 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Bank Overdraft and Short-term Loan from Financial
Institution |
39,183,372.76 |
29,253,711.26 |
9,424,684.36 |
|
Trade Accounts Payable |
84,354,703.25 |
27,853,221.53 |
90,350,024.44 |
|
Short-term Loan from
Related Person |
11,120,000.00 |
13,520,000.00 |
57,080,000.00 |
|
Accrued Income Tax |
412,081.61 |
592,382.42 |
- |
|
Other Current Liabilities |
570,277.12 |
9,848,505.04 |
4,228,933.16 |
|
Total Current Liabilities |
135,640,434.74 |
81,067,820.25 |
161,083,641.96 |
|
Long-term Loan |
3,000,000.00 |
- |
- |
|
Total Liabilities |
138,640,434.74 |
81,067,820.25 |
161,083,641.96 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 200,000 shares
in 2011 and 110,000
shares in 2010 and
2009 respectively |
20,000,000.00 |
11,000,000.00 |
11,000,000.00 |
|
Capital Paid |
20,000,000.00 |
11,000,000.00 |
11,000,000.00 |
|
Retained Earning -
Unappropriated |
[4,337,627.52] |
436,584.55 |
[1,480,061.77] |
|
Total Shareholders' Equity |
15,662,372.48 |
11,436,584.55 |
9,519,938.23 |
|
Total Liabilities &
Shareholders' Equity |
154,302,807.22 |
92,504,404.80 |
170,603,580.19 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales |
101,294,691.32 |
162,357,728.45 |
101,472,686.61 |
|
Other Income |
133,994.18 |
3,328,226.47 |
3,495,732.85 |
|
Total Revenues |
101,428,685.50 |
165,685,954.92 |
104,968,419.46 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
92,112,006.37 |
147,741,416.80 |
92,073,945.52 |
|
Selling Expenses |
2,480,264.79 |
8,002,622.10 |
5,363,187.77 |
|
Administrative Expenses |
5,957,641.54 |
6,173,030.03 |
5,615,251.40 |
|
Other Expenses |
2,468,129.71 |
- |
- |
|
Total Expenses |
103,018,042.41 |
161,917,068.93 |
103,052,384.69 |
|
Profit / [Loss] before Financial
Cost & Income Tax |
[1,589,356.91] |
3,768,885.99 |
1,916,034.77 |
|
Financial Cost |
[2,423,781.10] |
[869,855.71] |
[669,725.91] |
|
Profit / [Loss] before Income
Tax |
[4,013,138.01] |
2,899,030.28 |
1,246,308.86 |
|
Income Tax |
[761,074.06] |
[982,383.96] |
[582,518.57] |
|
Net Profit / [Loss] |
[4,774,212.07] |
1,916,646.32 |
663,790.29 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.07 |
1.03 |
1.04 |
|
QUICK RATIO |
TIMES |
0.17 |
0.30 |
0.18 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
35.94 |
51.34 |
29.22 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.66 |
1.76 |
0.59 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
481.13 |
144.45 |
546.86 |
|
INVENTORY TURNOVER |
TIMES |
0.76 |
2.53 |
0.67 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
83.35 |
54.40 |
102.94 |
|
RECEIVABLES TURNOVER |
TIMES |
4.38 |
6.71 |
3.55 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
334.26 |
68.81 |
358.17 |
|
CASH CONVERSION CYCLE |
DAYS |
230.21 |
130.04 |
291.63 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
90.93 |
91.00 |
90.74 |
|
SELLING & ADMINISTRATION |
% |
8.33 |
8.73 |
10.82 |
|
INTEREST |
% |
2.39 |
0.54 |
0.66 |
|
GROSS PROFIT MARGIN |
% |
9.20 |
11.05 |
12.71 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(1.57) |
2.32 |
1.89 |
|
NET PROFIT MARGIN |
% |
(4.71) |
1.18 |
0.65 |
|
RETURN ON EQUITY |
% |
(30.48) |
16.76 |
6.97 |
|
RETURN ON ASSET |
% |
(3.09) |
2.07 |
0.39 |
|
EARNING PER SHARE |
BAHT |
(23.87) |
17.42 |
6.03 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.90 |
0.88 |
0.94 |
|
DEBT TO EQUITY RATIO |
TIMES |
8.85 |
7.09 |
16.92 |
|
TIME INTEREST EARNED |
TIMES |
(0.66) |
4.33 |
2.86 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(37.61) |
60.00 |
|
|
OPERATING PROFIT |
% |
(142.17) |
96.70 |
|
|
NET PROFIT |
% |
(349.09) |
188.74 |
|
|
FIXED ASSETS |
% |
(10.87) |
(8.94) |
|
|
TOTAL ASSETS |
% |
66.81 |
(45.78) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -37.61%. Turnover has decreased from THB
162,357,728.45 in 2010 to THB 101,294,691.32 in 2011. While net profit has
decreased from THB 1,916,646.32 in 2010 to THB -4,774,212.07 in 2011. And total
assets has increased from THB 92,504,404.80 in 2010 to THB 154,302,807.22 in
2011.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
9.20 |
Satisfactory |
Industrial
Average |
9.66 |
|
Net Profit Margin |
(4.71) |
Deteriorated |
Industrial
Average |
(0.20) |
|
Return on Assets |
(3.09) |
Deteriorated |
Industrial
Average |
(0.27) |
|
Return on Equity |
(30.48) |
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 9.2%. 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 -4.71%.
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 -3.09%.
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 -30.48%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Stable
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.07 |
Acceptable |
Industrial
Average |
1.72 |
|
Quick Ratio |
0.17 |
|
|
|
|
Cash Conversion Cycle |
230.21 |
|
|
|
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 1.07 times in 2011, increased from 1.03 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 lower.
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 0.17 times in 2011,
decreased from 0.3 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 231 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.90 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
8.85 |
Risky |
Industrial
Average |
1.67 |
|
Times Interest Earned |
(0.66) |
Risky |
Industrial
Average |
0.63 |
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 -0.66 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 0.9 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 |
35.94 |
Impressive |
Industrial
Average |
10.73 |
|
Total Assets Turnover |
0.66 |
Deteriorated |
Industrial
Average |
1.47 |
|
Inventory Conversion Period |
481.13 |
|
|
|
|
Inventory Turnover |
0.76 |
Deteriorated |
Industrial
Average |
2.17 |
|
Receivables Conversion Period |
83.35 |
|
|
|
|
Receivables Turnover |
4.38 |
Impressive |
Industrial
Average |
3.31 |
|
Payables Conversion Period |
334.26 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.38 and 6.71 in
2011 and 2010 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 2011
decreased from 2010. 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 144 days at the
end of 2010 to 481 days at the end of 2011. This represents a negative trend.
And Inventory turnover has decreased from 2.53 times in year 2010 to 0.76 times
in year 2011.
The company's Total Asset Turnover is calculated as 0.66 times and 1.76
times in 2011 and 2010 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.54.38 |
|
UK Pound |
1 |
Rs.82.07 |
|
Euro |
1 |
Rs.70.37 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.