MIRA
INFORM REPORT
|
Report Date : |
06.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
RADHE DIAM
CO., LTD. |
|
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Registered Office : |
322/33H, 16th Floor, Bangkok Gem & Jewellery Tower, Surawongse Road, Siphaya, Bangrak, Bangkok 10500 |
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Country : |
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|
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
16.02.2004 |
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Com. Reg. No.: |
0105547022259 |
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Legal Form : |
Private
Limited Company |
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Line of Business : |
Importing
and distributing various
kinds of cut
diamonds, specialized in Tapars, Baugetts, Trillions, Marquises
cuts |
|
|
|
|
No. of Employees : |
02 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
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 crisis 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 and address
RADHE DIAM
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 322/33H, 16th FLOOR,
BANGKOK GEM & JEWELLERY TOWER,
SURAWONGSE ROAD,
SIPHAYA, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2631-4646,
089 144-4226
FAX :
[66] 2631-4646
E-MAIL
ADDRESS : radhe_diam@yahoo.co.in
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2004
REGISTRATION
NO. : 0105547022259
TAX
ID NO. : 3031291829
CAPITAL REGISTERED : BHT. 5,000,000
CAPITAL PAID-UP : BHT.
5,000,000
SHAREHOLDER’S PROPORTION : THAI :
51%
INDIAN
: 49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
JAYESBHAI MOHANBHAI PATEL,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 2
LINES
OF BUSINESS : DIAMONDS
IMPORTER AND
DISTRIBUTOR
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 February 16, 2004
as a private
limited company under the
registered name RADHE
DIAM CO., LTD.,
by Thai and Indian groups, with
the business objective
to import and
distribute various kinds
of cut diamonds
for jewelry industry.
It currently employs
2 staff.
The
subject’s registered address
is 322/33H, 16th Floor,
Bangkok Gems & Jewellery Tower,
Surawongse Road, Siphaya,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Jayeshbhai Mohanbhai Patel |
|
Indian |
37 |
|
Mr. Krashnakumar
Govindbhai Avaiya |
|
Indian |
29 |
|
Mr. Patsakorn Pakdeesuk |
|
Thai |
42 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Jayeshbhai Mohanbhai
Patel is the
Managing Director.
He is Indian
nationality with the
age of 37 years
old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing
various kinds of
cut diamonds, specialized
in Tapars, Baugetts, Trillions, Marquises cuts and etc., for jewelry
production industry.
IMPORT
100%
of the products
is imported from
India, Hong Kong
and Republic of
China.
SALES
100% of the
products is sold
locally to manufacturers
and end-users.
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.
Imports are by
T/T.
EMPLOYMENT
The
subject currently employs
2 staff.
LOCATION DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in a prime
commercial area.
COMMENT
Subject
is an importer
and distributor of
cut diamonds. Subject
reported slow sales
in the year
2012 compared to the earlier
year. Market of
luxury goods including
diamond jewelry has
been slowing since
the economic uncertainty,
decline domestic consumption
and shrinking consumer
spending.
FINANCIAL INFORMATION
The
capital was registered at
Bht. 2,000,000 divided into 20,000 shares of
Bht. 100 each with
fully paid.
The
capital was increased
and decreased later
as follows:
Bht. 4,000,000
on June 13,
2005
Bht. 6,000,000
on February 14,
2007
Bht. 5,000,000
on October 8,
2010
The
latest registered capital
was decreased to
Bht. 5,000,000 divided into 50,000
shares of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
July 17, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Patsakorn Pakdeesuk Nationality: Thai Address : 18/1
Moo 1, T. Nonetathane, A. Nonedaeng,
Nakornratchasima |
25,500 |
51.00 |
|
Mr. Jayeshbhai Mohanbhai Patel Nationality: Indian Address : 160/218
Silom Road, Suriyawongse,
Bangrak, Bangkok |
20,000 |
40.00 |
|
Mr. Krashnakumar
Govindbhai Avaiya Nationality: Thai Address : 160/218
Silom Road, Suriyawongse,
Bangrak, Bangkok |
4,500 |
9.00 |
Total Shareholders : 3
Share Structure [as
at July 17,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
25,500 |
51.00 |
|
Foreign-Indian |
2 |
24,500 |
49.00 |
|
Total |
3 |
50,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Wasana Tanmongkol No.
1888
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 |
44,035.08 |
493,785.29 |
92,895.16 |
|
Trade Accounts Receivable
|
8,599,774.41 |
17,538,382.92 |
8,596,236.91 |
|
Inventories |
4,919,717.03 |
20,905,451.46 |
7,822,987.64 |
|
Other Current Assets
|
- |
24,790.46 |
- |
|
|
|
|
|
|
Total Current Assets
|
13,563,526.52 |
38,962,410.13 |
16,512,119.71 |
|
|
|
|
|
|
Fixed Assets |
9,487.64 |
17,939.88 |
27,072.72 |
|
Total Assets |
13,573,014.16 |
38,980,350.01 |
16,539,192.43 |
LIABILITIES & SHAREHOLDERS’ EQUITY
[BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable
|
9,379,279.14 |
34,546,277.88 |
12,224,287.54 |
|
Other Current Liabilities |
75,185.07 |
50,727.09 |
46,774.51 |
|
|
|
|
|
|
Total Current Liabilities |
9,454,464.21 |
34,597,004.97 |
12,271,062.05 |
|
Total Liabilities |
9,454,464.21 |
34,597,004.97 |
12,271,062.05 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 50,000 shares |
5,000,000.00 |
5,000,000.00 |
5,000,000.00 |
|
|
|
|
|
|
Capital Paid |
5,000,000.00 |
5,000,000.00 |
5,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
[881,450.05] |
[616,654.96] |
[731,869.62] |
|
Total Shareholders' Equity |
4,118,549.95 |
4,383,345.04 |
4,268,130.38 |
|
Total Liabilities & Shareholders' Equity |
13,573,014.16 |
38,980,350.01 |
16,539,192.43 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
23,840,220.29 |
41,072,532.64 |
23,252,096.53 |
|
Other Income |
373,875.96 |
890.73 |
649,807.61 |
|
Total Revenues |
24,214,096.25 |
41,073,423.37 |
23,901,904.14 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
22,242,251.25 |
38,248,406.68 |
22,034,285.89 |
|
Selling Expenses |
112,200.00 |
202,082.83 |
42,408.25 |
|
Administrative Expenses |
2,049,021.81 |
1,722,345.38 |
1,689,213.42 |
|
Other Expenses |
- |
723,521.96 |
- |
|
Total Expenses |
24,403,473.06 |
40,896,356.85 |
23,765,907.56 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
[189,376.81] |
177,066.52 |
135,996.58 |
|
Financial Costs |
[8,517.49] |
[10,800.00] |
[9,600.00] |
|
Profit / [Loss] before Income Tax |
[197,894.30] |
166,266.52 |
126,396.58 |
|
Income Tax |
[66,900.79] |
[51,051.86] |
[33,747.92] |
|
|
|
|
|
|
Net Profit / [Loss] |
[264,795.09] |
115,214.66 |
92,648.66 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.43 |
1.13 |
1.35 |
|
QUICK RATIO |
TIMES |
0.91 |
0.52 |
0.71 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2,512.77 |
2,289.45 |
858.88 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.76 |
1.05 |
1.41 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
80.73 |
199.50 |
129.59 |
|
INVENTORY TURNOVER |
TIMES |
4.52 |
1.83 |
2.82 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
131.66 |
155.86 |
134.94 |
|
RECEIVABLES TURNOVER |
TIMES |
2.77 |
2.34 |
2.70 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
153.92 |
329.67 |
202.50 |
|
CASH CONVERSION CYCLE |
DAYS |
58.48 |
25.69 |
62.03 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
93.30 |
93.12 |
94.76 |
|
SELLING & ADMINISTRATION |
% |
9.07 |
4.69 |
7.45 |
|
INTEREST |
% |
0.04 |
0.03 |
0.04 |
|
GROSS PROFIT MARGIN |
% |
8.27 |
6.88 |
8.03 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(0.79) |
0.43 |
0.58 |
|
NET PROFIT MARGIN |
% |
(1.11) |
0.28 |
0.40 |
|
RETURN ON EQUITY |
% |
(6.43) |
2.63 |
2.17 |
|
RETURN ON ASSET |
% |
(1.95) |
0.30 |
0.56 |
|
EARNING PER SHARE |
BAHT |
(5.30) |
2.30 |
1.85 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.70 |
0.89 |
0.74 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.30 |
7.89 |
2.88 |
|
TIME INTEREST EARNED |
TIMES |
(22.23) |
16.40 |
14.17 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(41.96) |
76.64 |
|
|
OPERATING PROFIT |
% |
(206.95) |
30.20 |
|
|
NET PROFIT |
% |
(329.83) |
24.36 |
|
|
FIXED ASSETS |
% |
(47.11) |
(33.73) |
|
|
TOTAL ASSETS |
% |
(65.18) |
135.68 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -41.96%. Turnover has decreased from THB
41,072,532.64 in 2011 to THB 23,840,220.29 in 2012. While net profit has
decreased from THB 115,214.66 in 2011 to THB -264,795.09 in 2012. And total
assets has decreased from THB 38,980,350.01 in 2011 to THB 13,573,014.16 in
2012.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.27 |
Impressive |
Industrial
Average |
1.88 |
|
Net Profit Margin |
(1.11) |
Deteriorated |
Industrial
Average |
0.04 |
|
Return on Assets |
(1.95) |
Deteriorated |
Industrial
Average |
0.43 |
|
Return on Equity |
(6.43) |
Deteriorated |
Industrial
Average |
1.93 |
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 8.27%. 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 -1.11%.
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 -1.95%.
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 -6.43%.
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 |
1.43 |
Satisfactory |
Industrial
Average |
1.72 |
|
Quick Ratio |
0.91 |
|
|
|
|
Cash Conversion Cycle |
58.48 |
|
|
|
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 1.43 times in 2012, increased from 1.13 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 0.91 times in 2012,
increased from 0.52 times, by excluding inventory, the company may have
problems meeting current liabilities.
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 59 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
SATISFACTORY
LEVERAGE RATIO
|
Debt Ratio |
0.70 |
Impressive |
Industrial
Average |
0.76 |
|
Debt to Equity Ratio |
2.30 |
Satisfactory |
Industrial
Average |
3.41 |
|
Times Interest Earned |
(22.23) |
Risky |
Industrial
Average |
0.28 |
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 -22.24 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 0.7 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 Downtrend
ACTIVITY :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
2,512.77 |
Impressive |
Industrial
Average |
2.53 |
|
Total Assets Turnover |
1.76 |
Deteriorated |
Industrial
Average |
14.17 |
|
Inventory Conversion Period |
80.73 |
|
|
|
|
Inventory Turnover |
4.52 |
Deteriorated |
Industrial
Average |
43.91 |
|
Receivables Conversion Period |
131.66 |
|
|
|
|
Receivables Turnover |
2.77 |
Deteriorated |
Industrial
Average |
18.17 |
|
Payables Conversion Period |
153.92 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.77 and 2.34 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 199 days at the
end of 2011 to 81 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 1.83 times in year 2011 to 4.52 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.76 times and 1.05
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 Uptrend
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.
-
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 –
-
Gem & Jewellery Export Promotion Council in its statistical data has
shown the export of polished diamonds to have increase by 28 % in February
2013. Compared to $ 1.4 bn worth of polished diamond export in February, 2012,
India exported $ 1.84 billion worth of polished diamonds in February 2013. A
senior executive of GJEPC said, “Export of cut and polished diamonds started
falling month-wise after the imposition of 2 % of import duty on the polished
diamonds. But February, 2013 has given a new ray of hope to the industry as the
export of polished diamonds has actually increased by 28 %. It means the
industry is on the track of recovery and round tripping of diamonds has
stopped completely.” Demand has started coming from the US, the UK, Japan and
China. India’s polished diamond export is expected to cross $ 21 bn in 2013-14.
-
The banking sector has started exercising restraint while following
prudent risk management norms when lending money to gems and jewellery sector.
This follows the implementation of Basel III accord – a global voluntary
regulatory standard on bank capital adequacy, stress testing and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.79 |
|
|
1 |
Rs.98.66 |
|
Euro |
1 |
Rs.83.42 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.