MIRA INFORM REPORT
|
Report Date : |
18.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
HERRENKNECHT [ASIA] LTD. |
|
|
|
|
Registered Office : |
Federal Express Building, 12/621 Moo 15, Soi Sornhirun, Bangna - Trad Road, Bangkaew, Bangplee, Samutprakarn 10540 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
30.05.1996 |
|
|
|
|
Com. Reg. No.: |
0105539061691 [Former :
1249/2539] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Distributor &
Service Provider of Mechanical Tunnelling
Machines & Systems |
|
|
|
|
No. of Employees : |
63 |
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 : |
Satisfactory |
|
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 – 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
HERRENKNECHT
[ASIA] LTD.
SUMMARY
BUSINESS ADDRESS : FEDERAL
EXPRESS BUILDING,
12/621 MOO 15,
SOI SORNHIRUN,
BANGNA-TRAD ROAD, BANGKAEW, BANGPLEE,
SAMUTPRAKARN 10540, THAILAND
TELEPHONE : [66] 2745-0843-4,
2743-1268
FAX : [66] 2745-0845
E-MAIL ADDRESS : -
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1996
REGISTRATION NO. : 0105539061691 [Former : 1249/2539]
TAX ID NO. : 3011730027
CAPITAL REGISTERED : BHT. 100,000,000
CAPITAL PAID-UP : BHT. 29,500,000
SHAREHOLDER’S PROPORTION : FOREIGN :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
JENS MARTIN STEININGER,
GERMAN
MANAGING DIRECTOR
NO. OF STAFF : 63
LINES OF BUSINESS : MECHANICAL TUNNELLING
MACHINES &
SYSTEMS IMPORTER, DISTRIBUTOR
& SERVICE PROVIDER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD WITH
NORMAL BUSINESS ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was established
on May 30, 1996
as a private limited
company under the
name style HERRENKNECHT [ASIA]
LTD. by Foreign
group, with the
business objective to provide products
and services of mechanical
tunnelling machine systems for local and export
markets. It currently
employs 63 staff.
It is a
wholly owned subsidiary
of Herrenknecht Asia Headquaters Pte.,
Ltd., which is a member
of Herrenknecht AG. in Germany,
the world leading
manufacturer and distributor
of the entire
range of mechanical
tunnelling machines for
construction. It has
its own service
and sales offices
in Switzerland, the
Netherlands, Great Britain,
France, Spain, Russia,
United States of
America, Australia, Singapore,
Thailand and Republic
of China.
The subject’s registered
address is Federal
Express Building, 12/621
Moo 15, Soi
Sornhirun, Bangna-Trad Rd.,
Bangkaew, Bangplee, Samutprakarn
10540, and this
is the company’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ulrich Frank
Schaffhauser |
|
German |
49 |
|
Mr. Alexander James Mallaney |
|
British |
49 |
|
Mr. Jens Martins Steininger |
|
German |
40 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Jens Martins Steininger is
the Managing Director.
He is German
nationality with the
age of 40
years old.
Mr. Patrick Germain is
the Sales & Project Manager
He is German
nationality.
Mr. Chayan Simcharoen is the Site Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing mechanical
tunneling machines and systems
for tunnel construction
works, as well
as providing wide
range of services
including design, consulting,
training, installation, repair,
maintenance and rental
service of drilling
machine with diameters
ranging from 100 mm.
to 14,200 mm.
IMPORT [COUNTRIES]
100% of the
products is imported
from Germany.
MAJOR SUPPLIER
Herrenknecht AG. :
Germany
SALES
60% of the products
is sold and
serviced to overseas
customers in Singapore,
Republic of China,
Taiwan, Malaysia, Vietnam
and Laos, the
remaining 40% is
sold and serviced locally
to Thai government
and private sectors.
PARENT COMPANY
Herrenknecht
Asia Headquaters Pte.
Ltd. : Singapore
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 and services
are by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BUSINESS TRANSACTION
The products are
sold and serviced
mainly by credit
on negotiate term.
The subject is
not found to
have problem on its account
receivable from customers.
BANKING
Hongkong & Shanghai
Banking Corporation
[Bangkok Branch
: 968 Rama
4 Rd., Silom,
Bangrak, Bangkok 10500]
EMPLOYMENT
The subject employs
63 staff. [office
& sales staff,
engineers and workers].
LOCATION DETAILS
The premise is
rented for administrative office
and warehouse at the heading
address. Premise is
located in industrial
area.
COMMENT
The subject is the
Thailand sales office
of Herrenknecht AG.
It is occupied
a leading position
in the local
market for mechanical
tunnel construction. With
its pioneering innovations,
young, highly qualified
technical designers, engineers
and research teams ensure
that the company maintains
its position as
technology leader.
FINANCIAL INFORMATION
The capital was initially
registered at Bht. 4,000,000
divided into 40,000
shares of Bht.
100 each.
The capital was
increased later as
follows:
Bht. 6,000,000
on December 30,
1987
Bht. 100,000,000 on December 29,
2006
The latest registered
capital was increased to
Bht. 100,000,000 divided
into 1,000,000 shares
of Bht. 100
each, with the
current capital paid-up
at Bht. 29,500,000.
THE SHAREHOLDERS LISTED WERE
[as at
April 25, 2012] at
Bht. 29,500,000 of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Herrenknecht Asia Headquaters
Pte. Ltd. Nationality: Singaporean Address : 62
Julia Street, #48-02
OCBC Center,
Singapore 049513 |
999,998 |
100.00 |
|
Mr. Ulrich Frank
Schaffhauser Nationality: German Address : Germany |
1 |
- |
|
Mr. Alexander James
Mallaney Nationality: British Address : 12/621
Moo 15, Bangna-Trad
Rd.,
Bangkaew, Bangplee, Samutprakarn |
1 |
- |
Total Shareholders : 3
Share Structure
[as at
April 25, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
3 |
1,000,000 |
100% |
|
Total |
3 |
1,000,000 |
100% |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mr. Niti Cheungnijnirand No.
3809
BALANCE SHEET [BAHT]
The latest
financial figures published as
at December 31,
2011, 2010 &
2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash and Cash Equivalents |
10,235,799 |
10,792,822 |
51,543,597 |
|
Trade Accounts and
Other Receivable |
|
|
|
|
Trade Accounts
Receivable |
95,579,682 |
72,759,005 |
81,239,463 |
|
Sale and Deferred Services
|
2,532,242 |
5,479,501 |
6,654,325 |
|
Prepaid Expenses |
3,017,938 |
3,704,133 |
- |
|
Inventories |
12,010,750 |
21,493,752 |
44,797,141 |
|
Refundable Value Added Tax |
2,756,936 |
5,667,363 |
5,251 |
|
Other Current Assets
|
1,333,099 |
1,358,326 |
3,605,495 |
|
|
|
|
|
|
Total
Current Assets |
127,466,446 |
121,254,902 |
187,845,272 |
|
Cash at Bank pledged as
a Collateral |
2,000,000 |
2,000,000 |
2,000,000 |
|
Fixed Assets |
19,523,271 |
14,593,133 |
13,284,771 |
|
Other Non - current Assets |
962,095 |
1,167,063 |
1,562,487 |
|
Total
Assets |
149,951,812 |
139,015,098 |
204,692,530 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Trade Accounts and
Other Payable |
|
|
|
|
Trade Accounts
Payable |
59,216,627 |
28,420,616 |
66,276,072 |
|
Other Payable
|
610,559 |
1,337,718 |
1,267,813 |
|
Pre-received Income |
3,581,264 |
4,792,683 |
6,654,054 |
|
Accrued Expenses |
4,395,785 |
5,073,884 |
2,221,083 |
|
Short-term Loan from Parent
Company |
- |
12,073,920 |
14,438,520 |
|
Accrued Income Tax |
769,203 |
5,477,426 |
1,663,710 |
|
Accrued Withholding Income Tax |
- |
- |
1,216,286 |
|
Estimated Liabilities |
- |
480,594 |
480,594 |
|
Accrued Services |
- |
- |
13,716,594 |
|
Other Current Liabilities |
387,680 |
950,502 |
- |
|
|
|
|
|
|
Total Current Liabilities |
68,961,118 |
58,607,343 |
107,934,726 |
|
Total
Liabilities |
68,961,118 |
58,607,343 |
107,934,726 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value Authorized &
issued share capital
1,000,000 shares |
100,000,000 |
100,000,000 |
100,000,000 |
|
|
|
|
|
|
Capital Paid |
29,500,000 |
29,500,000 |
29,500,000 |
|
Retained Earnings: Appropriated for Statutory Reserve |
6,398,311 |
6,398,311 |
4,386,491 |
|
Unappropriated |
45,092,383 |
44,509,444 |
62,871,313 |
|
Total
Shareholders' Equity |
80,990,694 |
80,407,755 |
96,757,804 |
|
Total
Liabilities &
Shareholders'
Equity |
149,951,812 |
139,015,098 |
204,692,530 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales Income |
157,066,121 |
261,995,690 |
291,609,393 |
|
Service Income |
55,802,458 |
83,288,384 |
65,576,210 |
|
Commission Income |
15,422,381 |
15,060,274 |
23,875,264 |
|
Rental Equipment Income |
12,605,433 |
3,633,093 |
4,216,360 |
|
Other Income |
|
|
|
|
Compensation Tax |
- |
10,992,830 |
- |
|
Gain on Exchange Rate |
3,917,316 |
1,476,207 |
- |
|
Other |
1,341,717 |
2,070,182 |
1,555,288 |
|
Total
Revenues |
246,155,426 |
378,516,660 |
386,832,515 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
173,897,246 |
281,230,146 |
261,148,442 |
|
Selling Expenses |
22,838,562 |
40,552,006 |
31,195,028 |
|
Administrative Expenses |
46,854,479 |
61,565,133 |
61,026,920 |
|
Loss on Exchange Rate |
- |
- |
1,554,332 |
|
Total Expenses
|
243,590,287 |
383,347,285 |
354,924,722 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
2,565,139 |
[4,830,625] |
31,907,793 |
|
Financial Costs |
[164,807] |
89,073] |
[130,101] |
|
Profit / [Loss] before Income
Tax |
2,400,332 |
[4,919,698] |
31,777,692 |
|
Income Tax |
[1,817,393] |
[5,530,351] |
[9,142,787] |
|
|
|
|
|
|
Net
Profit / [Loss] |
582,939 |
[10,450,049] |
22,634,905 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.85 |
2.07 |
1.74 |
|
QUICK RATIO |
TIMES |
1.61 |
1.58 |
1.29 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
12.34 |
24.94 |
29.00 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.61 |
2.62 |
1.88 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
25.21 |
27.90 |
62.61 |
|
INVENTORY TURNOVER |
TIMES |
14.48 |
13.08 |
5.83 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
144.82 |
72.96 |
76.96 |
|
RECEIVABLES TURNOVER |
TIMES |
2.52 |
5.00 |
4.74 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
124.29 |
36.89 |
92.63 |
|
CASH CONVERSION CYCLE |
DAYS |
45.74 |
63.97 |
46.94 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
72.19 |
77.27 |
67.78 |
|
SELLING & ADMINISTRATION |
% |
28.93 |
28.06 |
23.94 |
|
INTEREST |
% |
0.07 |
0.02 |
0.03 |
|
GROSS PROFIT MARGIN |
% |
30.00 |
26.73 |
32.62 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.06 |
(1.33) |
8.28 |
|
NET PROFIT MARGIN |
% |
0.24 |
(2.87) |
5.87 |
|
RETURN ON EQUITY |
% |
0.72 |
(13.00) |
23.39 |
|
RETURN ON ASSET |
% |
0.39 |
(7.52) |
11.06 |
|
EARNING PER SHARE |
BAHT |
1.98 |
(35.42) |
76.73 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.46 |
0.42 |
0.53 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.85 |
0.73 |
1.12 |
|
TIME INTEREST EARNED |
TIMES |
15.56 |
(54.23) |
245.25 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(33.82) |
(5.53) |
|
|
OPERATING PROFIT |
% |
(153.10) |
(115.14) |
|
|
NET PROFIT |
% |
105.58 |
(146.17) |
|
|
FIXED ASSETS |
% |
33.78 |
9.85 |
|
|
TOTAL ASSETS |
% |
7.87 |
(32.09) |
|
ANNUAL GROWTH : SATISFACTORY
An annual sales growth is -33.82%. Turnover has decreased from THB
363,977,441.00 in 2010 to THB 240,896,393.00 in 2011. While net profit has
increased from THB -10,450,049.00 in 2010 to THB 582,939.00 in 2011. And total
assets has increased from THB 139,015,098.00 in 2010 to THB 149,951,812.00 in
2011.
PROFITABILITY : ACCEPTABLE
PROFITABILITY RATIO
|
Gross Profit Margin |
30.00 |
Impressive |
Industrial Average |
15.85 |
|
Net Profit Margin |
0.24 |
Deteriorated |
Industrial Average |
0.89 |
|
Return on Assets |
0.39 |
Deteriorated |
Industrial Average |
3.28 |
|
Return on Equity |
0.72 |
Deteriorated |
Industrial Average |
10.43 |
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 30%. 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 0.24%.
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 0.39%.
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 0.72%.
Trend of the average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Uptrend
LIQUIDITY : IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
1.85 |
Impressive |
Industrial Average |
1.15 |
|
Quick Ratio |
1.61 |
|
|
|
|
Cash Conversion Cycle |
45.74 |
|
|
|
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 1.85 times in 2011, decreased from 2.07 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 1.61 times in 2011,
increased from 1.58 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 46 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.46 |
Impressive |
Industrial Average |
0.70 |
|
Debt to Equity Ratio |
0.85 |
Impressive |
Industrial Average |
2.34 |
|
Times Interest Earned |
15.56 |
Impressive |
Industrial Average |
- |
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 15.57 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 0.46 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 Uptrend
Times Interest Earned Downtrend
ACTIVITY : ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
12.34 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.61 |
Deteriorated |
Industrial Average |
3.67 |
|
Inventory Conversion Period |
25.21 |
|
|
|
|
Inventory Turnover |
14.48 |
Satisfactory |
Industrial Average |
16.32 |
|
Receivables Conversion Period |
144.82 |
|
|
|
|
Receivables Turnover |
2.52 |
Deteriorated |
Industrial Average |
5.34 |
|
Payables Conversion Period |
124.29 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.52 and 5.00 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 decreased from 28 days at the
end of 2010 to 25 days at the end of 2011. This represents a positive trend.
And Inventory turnover has increased from 13.08 times in year 2010 to 14.48
times in year 2011.
The company's Total Asset Turnover is calculated as 1.61 times and 2.62
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 Downtrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.88 |
|
|
1 |
Rs.83.66 |
|
Euro |
1 |
Rs.70.58 |
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.