MIRA
INFORM REPORT
|
Report Date : |
16.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
A-ONE DIAMONDS CO., LTD. |
|
|
|
|
Registered Office : |
Room 301, 3rd Floor, 14-16 Mahaesak Road, Suriyawongse, Bangrak, Bangkok 10500, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
15.07.2008 |
|
|
|
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Com. Reg. No.: |
0105551076333 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
LINE OF BUSINESS : |
IMPORTING AND DISTRIBUTING OF
CUT DIAMONDS, GEMSTONES
AND JEWELRY PRODUCTS. |
|
|
|
|
No. of Employees : |
03 |
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 |
|
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 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
A-ONE DIAMONDS CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
301, 3rd FLOOR,
14-16 MAHAESAK ROAD,
SURIYAWONGSE, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2267-4246
FAX :
[66] 2267-4246
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2008
REGISTRATION
NO. : 0105551076333
TAX
ID NO. : 3033139181
CAPITAL REGISTERED : BHT. 6,000,000
CAPITAL PAID-UP : BHT.
6,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. AMIT SANKHLA,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 3
LINES
OF BUSINESS : DIAMONDS, GEMSTONES
AND JEWELRY
IMPORTER &
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 July 15,
2008 as a
private limited company
under the registered
name A-ONE DIAMONDS
CO., LTD., by
Thai and Indian
groups, with the
objective in jewelry
trading business. It currently employs
3 staff.
The
subject’s registered address
was initially at Room C, 9A Floor,
Gems Tower Building,
1249/93 Charoenkrung Rd.,
Suriyawongse, Bangrak, Bangkok
10500.
On
November 1, 2013,
the subject’s registered address
was relocated to
Room 301, 3rd Floor,
Mahaesak Rd., Suriyawongse,
Bangrak, Bangkok 10500, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Amit Sankhla |
|
Indian |
31 |
|
Mr. Vikrant Karnawat |
|
Indian |
37 |
|
Mr. Vikas Jain |
|
Indian |
35 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Amit Sankhla is
the Managing Director.
He is Indian
nationality with the
age of 31
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing
of cut diamonds,
gemstones and jewelry
products.
PURCHASE
Most
of the products
are imported from
India, Pakistan, Republic
of China and
South Africa, the
remaining is purchased
from local suppliers.
SALES
100% of the
products is sold
locally to wholesalers,
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.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
T/T.
BANKING
Bangkok
Bank Public Co., Ltd.
EMPLOYMENT
The
subject currently employs
3 staff.
LOCATION DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in a prime
commercial area.
COMMENT
The subject
was established in
July 2008. Its sales
in 2012 was reported
at low level.
Sale of diamonds
and gemstones to
domestic consumer is
relative slow, while
current domestic consumption
is worrisome.
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 later as
follows:
Bht.
4,000,000 on October
21, 2008
Bht.
6,000,000 on October
11, 2012
The
latest registered capital
was increased to
Bht. 6,000,000 divided
into 60,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Sanong Nilprasert Nationality: Thai Address : 411/16
Krungthep-Kreetha Rd.,
Huamark, Bangkapi, Bangkok
|
10,200 |
17.00 |
|
Mrs. Kularb Pannoppa Nationality: Thai Address : 121 Soi
Krungthep-Kreetha 17, Huamark,
Bangkapi, Bangkok |
10,200 |
17.00 |
|
Mrs. Chintana Kuadma Nationality: Thai Address : 40/10 Moo
9, Sapansung, Bangkok |
10,200 |
17.00 |
|
Mr. Amit Sankhla Nationality: Indian Address : 1249/79
Charoenkrung Rd., Suriyawongse,
Bangrak, Bangkok |
9,800 |
16.33 |
|
Mr. Vikrant Karnawat Nationality: Indian Address : 1249/79
Charoenkrung Rd., Suriyawongse,
Bangrak, Bangkok |
9,800 |
16.33 |
|
Mr. Vikas Jain Nationality: Indian Address : 1249/79
Charoenkrung Rd., Suriyawongse,
Bangrak, Bangkok |
9,800 |
16.34 |
Total Shareholders : 6
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
30,600 |
51.00 |
|
Foreign - Indian |
3 |
29,400 |
49.00 |
|
Total |
6 |
60,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Srisak Saksongmuang No. 7650
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 |
16,665.23 |
16,055.75 |
112,546.60 |
|
Trade Accounts & Other Receivable |
6,761,952.84 |
4,192,038.65 |
4,092,503.26 |
|
Inventories |
2,702,945.00 |
1,709,872.16 |
1,283,090.56 |
|
Other Current Assets
|
142,450.00 |
178,686.42 |
124,165.69 |
|
|
|
|
|
|
Total Current Assets
|
9,624,013.07 |
6,096,652.98 |
5,612,306.11 |
|
Long-term Investment
|
3,770,000.00 |
2,790,000.00 |
2,200,000.00 |
|
Fixed Assets |
8,270.72 |
21,099.68 |
33,928.64 |
|
Other Non-current Assets |
27,000.00 |
27,000.00 |
27,000.00 |
|
Total Assets |
13,429,283.79 |
8,934,752.66 |
7,873,234.75 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts & Other Payable
|
8,155,886.68 |
5,319,198.98 |
4,270,202.01 |
|
Other Current Liabilities |
25,195.40 |
17,906.35 |
31,499.69 |
|
|
|
|
|
|
Total Current Liabilities |
8,181,082.08 |
5,337,105.33 |
4,301,701.70 |
|
Total Liabilities |
8,181,082.08 |
5,337,105.33 |
4,301,701.70 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 60,000 shares
in 2012, 40,000
shares in 2011 & 2010 |
6,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
|
|
|
|
|
Capital Paid |
6,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
[751,798.29] |
[402,352.67] |
[428,466.95] |
|
Total Shareholders' Equity |
5,248,201.71 |
3,597,647.33 |
3,571,533.05 |
|
Total Liabilities & Shareholders' Equity |
13,429,283.79 |
8,934,752.66 |
7,873,234.75 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
8,393,706.00 |
12,560,601.96 |
9,241,622.75 |
|
Other Income |
131,950.00 |
89,199.46 |
88,555.99 |
|
Total Revenues |
8,525,656.00 |
12,649,801.42 |
9,330,178.74 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
7,233,531.66 |
11,070,535.80 |
8,343,251.38 |
|
Selling Expenses |
1,641,569.96 |
1,553,151.34 |
1,053,966.28 |
|
Total Expenses |
8,875,101.62 |
12,623,687.14 |
9,397,217.66 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
[349,445.62] |
26,114.28 |
[67,038.92] |
|
Financial Cost |
- |
- |
[1,600.00] |
|
Profit / [Loss] before Income Tax |
[349,445.62] |
26,114.28 |
[68,638.92] |
|
Income Tax |
- |
- |
[15,322.96] |
|
|
|
|
|
|
Net Profit / [Loss] |
[349,445.62] |
26,114.28 |
[83,961.88] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.18 |
1.14 |
1.30 |
|
QUICK RATIO |
TIMES |
0.83 |
0.79 |
0.98 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1,014.87 |
595.30 |
272.38 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.63 |
1.41 |
1.17 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
136.39 |
56.38 |
56.13 |
|
INVENTORY TURNOVER |
TIMES |
2.68 |
6.47 |
6.50 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
294.04 |
121.82 |
161.63 |
|
RECEIVABLES TURNOVER |
TIMES |
1.24 |
3.00 |
2.26 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
411.54 |
175.38 |
186.81 |
|
CASH CONVERSION CYCLE |
DAYS |
18.89 |
2.82 |
30.95 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
86.18 |
88.14 |
90.28 |
|
SELLING & ADMINISTRATION |
% |
19.56 |
12.37 |
11.40 |
|
INTEREST |
% |
- |
- |
0.02 |
|
GROSS PROFIT MARGIN |
% |
15.39 |
12.57 |
10.68 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(4.16) |
0.21 |
(0.73) |
|
NET PROFIT MARGIN |
% |
(4.16) |
0.21 |
(0.91) |
|
RETURN ON EQUITY |
% |
(6.66) |
0.73 |
(2.35) |
|
RETURN ON ASSET |
% |
(2.60) |
0.29 |
(1.07) |
|
EARNING PER SHARE |
BAHT |
(5.82) |
0.65 |
(2.10) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.61 |
0.60 |
0.55 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.56 |
1.48 |
1.20 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
(41.90) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(33.17) |
35.91 |
|
|
OPERATING PROFIT |
% |
(1,438.14) |
(138.95) |
|
|
NET PROFIT |
% |
(1,438.14) |
131.10 |
|
|
FIXED ASSETS |
% |
(60.80) |
(37.81) |
|
|
TOTAL ASSETS |
% |
50.30 |
13.48 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -33.17%. Turnover has decreased from THB
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
15.39 |
Impressive |
Industrial
Average |
1.88 |
|
Net Profit Margin |
(4.16) |
Deteriorated |
Industrial
Average |
0.04 |
|
Return on Assets |
(2.60) |
Deteriorated |
Industrial
Average |
0.43 |
|
Return on Equity |
(6.66) |
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 15.39%. 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 -4.16%.
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 -2.6%.
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 -6.66%.
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 |
1.18 |
Acceptable |
Industrial
Average |
1.72 |
|
Quick Ratio |
0.83 |
|
|
|
|
Cash Conversion Cycle |
18.89 |
|
|
|
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 1.18 times in 2012, increased from 1.14 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 0.83 times in 2012,
increased from 0.79 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 19 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.61 |
Impressive |
Industrial
Average |
0.76 |
|
Debt to Equity Ratio |
1.56 |
Impressive |
Industrial
Average |
3.41 |
|
Times Interest Earned |
- |
|
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.
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 Downtrend
ACTIVITY :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
1,014.87 |
Impressive |
Industrial
Average |
2.53 |
|
Total Assets Turnover |
0.63 |
Deteriorated |
Industrial
Average |
14.17 |
|
Inventory Conversion Period |
136.39 |
|
|
|
|
Inventory Turnover |
2.68 |
Deteriorated |
Industrial
Average |
43.91 |
|
Receivables Conversion Period |
294.04 |
|
|
|
|
Receivables Turnover |
1.24 |
Deteriorated |
Industrial
Average |
18.17 |
|
Payables Conversion Period |
411.54 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.24 and
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 56 days at the
end of 2011 to 136 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 6.47 times in year 2011 to 2.68 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.63 times and 1.41
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.63.06 |
|
|
1 |
Rs.101.15 |
|
Euro |
1 |
Rs.84.95 |
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.