MIRA
INFORM REPORT
|
Report Date : |
25.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
PHONLAWAT INTERCHEM
LTD. |
|
|
|
|
Registered Office : |
2188 Moo
4, Soi Sriboonruang 1, Theparak Road, Theparak, Muang, Samutprakarn
10270 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
06.11.1989 |
|
|
|
|
Com. Reg. No.: |
0105532106044 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer and distributor of Electro-plating chemicals. |
|
|
|
|
No. of Employees : |
58 |
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 : |
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 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 201
Source
: CIA
Company name
PHONLAWAT
INTERCHEM LTD.
SUMMARY
BUSINESS
ADDRESS : 2188
MOO 4, SOI
SRIBOONRUANG 1,
THEPARAK ROAD,
THEPARAK, MUANG,
SAMUTPRAKARN 10270,
THAILAND
TELEPHONE : [66] 2394-7030-40,
2755-6620
FAX :
[66] 2394-7041,
2710-1191, 2755-6621
E-MAIL
ADDRESS : info@phonlawat.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1989
REGISTRATION
NO. : 0105532106044 [Former : 10632/2532]
TAX
ID NO. : 3101764031
CAPITAL REGISTERED : BHT. 5,000,000
CAPITAL PAID-UP : BHT.
5,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PHONLAWAT PUTHIVISUTHISAK, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 58
LINES
OF BUSINESS : ELECTRO PLATING
CHEMICAL
IMPORTER &
DISTRIBUTOR
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 November
6, 1989 as
a private limited
company under the name
style PHONLAWAT INTERCHEM
LTD., by Thai
group, Puthivisuthisak family,
in order to import and
distribute Electro-plating chemical
to domestic market.
It currently employs
58 staff.
The subject’s registered address is
2188 Moo 4,
Soi Sriboonruang 1,
Theparak Rd., Theparak,
Muang, Samutprakarn 10270,
and this is the
subject’s current operation
address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Phonlawat Puthivisuthisak |
|
Thai |
51 |
|
Ms. Vathinee Puthivisuthisak |
|
Thai |
53 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Phonlawat Puthivisuthisak is
the Managing Director.
He is Thai
nationality with the
age of 51
years old.
Ms. Karnchana Chingduang
is the Sales
Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is an importer
and distributor of
Electro-plating chemicals.
MAJOR BRANDS
“SOLVAY”, “ LANXESS”, “INKABOR”,
“BAYER”, “METRA”, “AGC”,
“LUVATA”, and “ERAMET”
IMPORT [COUNTRIES]
90% of its
products is imported
from U.S.A., United
Kingdom, France, Italy,
Belgium, Canada, Japan,
Republic of China,
Korea, Malaysia, Germany,
Australia, Finland, Hong
Kong and Taiwan.
MAJOR SUPPLIERS
Inkabor Spa. : Italy
Solvay S.A. : Belgium
Naming Stull Co.,
Ltd. : Republic
of China
SALES [LOCAL]
100% of its
products is sold
locally to manufacturers
and wholesalers.
RELATED COMPANY
Phonlawat Chemical Ltd.
Business Type
: Importer and
distributor of industrial
chemicals
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 credit term
of 30 days.
Local bills are
paid on the credits
term of 30-45
days.
Imports are by
L/C on the
credits term of
30-60-90 days or
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Theparak Branch
: Theparak Rd.,
Muang, Samutprakarn]
[Kluaynamthai Branch
: Rama 4
Rd., Klongtoey, Bangkok]
EMPLOYMENT
The subject currently
employs 58 staff.
[office and sales
staff]
LOCATION DETAILS
The premise is
owned for operating
office at the
heading address. Premise
is located in
commercial/residential area.
Warehouse is located
at 191/1 Moo 24,
Sukhumvit Road, T. Samrongnua,
A. Muang, Samutprakarn 10270.
COMMENT
The subject operates
as an importer
and distributor of electro
plating chemicals for metal
plating, electronic, automobile
and steel industries.
The products are
mainly served to industrial users. Current industrial
downturn had resulted
to slow demand of
the products. However,
subject’s business remains
healthy.
FINANCIAL INFORMATION
The capital was
registered at Bht. 1,000,000 divided
into 10,000 shares of
Bht. 100 each.
The capital was
increased later as
followed:
Bht. 3,000,000 on
March 17, 2000
Bht. 5,000,000 on
June 16, 2004
The latest registered
capital was increased
to Bht. 5,000,000
divided into 50,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30,
2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Phonlawat Puthivisuthisak Nationality: Thai Address : 191/1
Moo 24, T. Samrongnua, A. Muang,
Samutprakarn |
43,000 |
76.66 |
|
Mr. Sompong Puthivisuthisak Nationality: Thai Address : 77/10 Sukhumvit Rd.,
Prakanong, Klongtoey, Bangkok |
2,500 |
8.33 |
|
Ms. Vathinee Puthivisuthisak Nationality: Thai Address : 84/1
Rama 4 Rd.,
Klongtoey, Prakanong, Bangkok |
2,500 |
8.33 |
|
Mr. Pakorn Puthivisuthisak Nationality: Thai Address : 84/1
Rama 4 Rd.,
Klongtoey, Prakanong, Bangkok |
500 |
1.67 |
|
Ms. Suwanna Puthivisuthisak Nationality: Thai Address : 77/10
Sukhumvit Rd., Prakanong,
Klongtoey, Bangkok |
500 |
1.67 |
|
Mr. Chinsak Puthivisuthisak Nationality: Thai Address : 77/10
Sukhumvit Rd., Prakanong,
Klongtoey, Bangkok |
500 |
1.67 |
|
Mrs. Liangkee Sae Heng Nationality: Thai Address : 77/10
Sukhumvit Rd., Prakanong,
Klongtoey, Bangkok |
500 |
1.67 |
Total Shareholders : 7
Share Structure
[as at April
30, 2013]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
50,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
50,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Chairat Chancharoen No. 4317
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 |
14,041,794.36 |
81,354,252.87 |
60,752,680.10 |
|
Short-term Investment |
18,794,735.87 |
38,607,505.76 |
18,528,070.92 |
|
Trade Accounts Receivable
|
100,165,083.00 |
95,983,692.56 |
97,876,683.49 |
|
Inventories |
60,761,094.65 |
58,697,972.07 |
39,093,833.31 |
|
Other Current Assets
|
5,258,293.19 |
2,030,577.72 |
1,885,769.17 |
|
|
|
|
|
|
Total Current Assets
|
199,021,001.07 |
276,674,000.98 |
218,137,036.99 |
|
|
|
|
|
|
Fixed Assets |
13,271,543.30 |
13,908,392.18 |
15,999,459.31 |
|
Total Assets |
212,292,544.37 |
290,582,393.16 |
234,136,496.30 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
59,537,409.36 |
170,838,737.56 |
113,025,012.93 |
|
Trade Accounts Payable
|
46,387,647.23 |
29,673,361.76 |
31,776,395.69 |
|
Other Current Liabilities |
14,174,113.81 |
16,986,893.64 |
29,146,782.54 |
|
|
|
|
|
|
Total Current Liabilities |
120,099,170.40 |
217,498,992.96 |
173,948,191.16 |
|
Long-term Loan |
90,212.81 |
141,656.70 |
348,831.20 |
|
Total Liabilities |
120,189,383.21 |
217,640,649.66 |
174,297,022.36 |
|
|
|
|
|
|
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 Earnings: Appropriated for Statutory Reserve |
561,796.06 |
561,796.06 |
561,796.06 |
|
Unappropriated |
86,541,365.10 |
67,379,947.44 |
54,277,677.88 |
|
Total Shareholders' Equity |
92,103,161.16 |
72,941,743.50 |
59,839,473.94 |
|
Total Liabilities & Shareholders' Equity |
212,292,544.37 |
290,582,393.16 |
234,136,496.30 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
417,734,914.27 |
440,606,655.84 |
444,477,385.94 |
|
Other Income |
7,741,620.75 |
825,368.65 |
11,171,950.59 |
|
Less: Refundable & Discount |
[64,120.00] |
[103,570.00] |
[52,175.00] |
|
Total Revenues |
425,412,415.02 |
441,328,454.49 |
455,597,161.53 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
375,167,112.70 |
383,938,937.71 |
392,078,128.05 |
|
Selling Expenses |
6,749,740.26 |
11,330,764.21 |
27,151,616.93 |
|
Administrative Expenses |
16,657,521.90 |
25,328,640.74 |
15,984,614.82 |
|
Other Expenses |
29,769.74 |
41,912.88 |
77,375.85 |
|
Total Expenses |
398,604,144.60 |
420,640,255.54 |
435,291,735.65 |
|
|
|
|
|
|
Profit before Financial Cost & Income
Tax |
26,808,270.42 |
20,688,198.95 |
20,305,425.88 |
|
Financial Cost |
[1,652,730.38] |
[1,939,130.97] |
[1,648,535.67] |
|
Profit / [Loss] before Income Tax |
25,155,540.04 |
18,749,067.98 |
18,656,890.21 |
|
Income Tax |
[5,994,122.38] |
[5,646,798.42] |
[5,546,594.29] |
|
|
|
|
|
|
Net Profit / [Loss] |
19,161,417.66 |
13,102,269.56 |
13,110,295.92 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.66 |
1.27 |
1.25 |
|
QUICK RATIO |
TIMES |
1.11 |
0.99 |
1.02 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
31.48 |
31.68 |
27.78 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.97 |
1.52 |
1.90 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
59.11 |
55.80 |
36.39 |
|
INVENTORY TURNOVER |
TIMES |
6.17 |
6.54 |
10.03 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
87.52 |
79.51 |
80.38 |
|
RECEIVABLES TURNOVER |
TIMES |
4.17 |
4.59 |
4.54 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
45.13 |
28.21 |
29.58 |
|
CASH CONVERSION CYCLE |
DAYS |
101.50 |
107.11 |
87.19 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
89.81 |
87.14 |
88.21 |
|
SELLING & ADMINISTRATION |
% |
5.60 |
8.32 |
9.70 |
|
INTEREST |
% |
0.40 |
0.44 |
0.37 |
|
GROSS PROFIT MARGIN |
% |
12.03 |
13.03 |
14.29 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
6.42 |
4.70 |
4.57 |
|
NET PROFIT MARGIN |
% |
4.59 |
2.97 |
2.95 |
|
RETURN ON EQUITY |
% |
20.80 |
17.96 |
21.91 |
|
RETURN ON ASSET |
% |
9.03 |
4.51 |
5.60 |
|
EARNING PER SHARE |
BAHT |
383.23 |
262.05 |
262.21 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.57 |
0.75 |
0.74 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.30 |
2.98 |
2.91 |
|
TIME INTEREST EARNED |
TIMES |
16.22 |
10.67 |
12.32 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(5.19) |
(0.87) |
|
|
OPERATING PROFIT |
% |
29.58 |
1.89 |
|
|
NET PROFIT |
% |
46.25 |
(0.06) |
|
|
FIXED ASSETS |
% |
(4.58) |
(13.07) |
|
|
TOTAL ASSETS |
% |
(26.94) |
24.11 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -5.19%. Turnover has decreased from THB
440,606,655.84 in 2011 to THB 417,734,914.27 in 2012. While net profit has
increased from THB 13,102,269.56 in 2011 to THB 19,161,417.66 in 2012. And
total assets has decreased from THB 290,582,393.16 in 2011 to THB
212,292,544.37 in 2012.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
12.03 |
Deteriorated |
Industrial
Average |
27.90 |
|
Net Profit Margin |
4.59 |
Impressive |
Industrial
Average |
2.46 |
|
Return on Assets |
9.03 |
Impressive |
Industrial
Average |
4.64 |
|
Return on Equity |
20.80 |
Impressive |
Industrial
Average |
9.65 |
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 12.03%. 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 4.59%, higher figure when compared with those
of its average competitors in the same industry, indicated that business was an
efficient operator in a dominant position within its industry.
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. Return on Assets ratio is
9.03%, higher figure when compared with those of its average competitors in the
same industry, indicated that business was an efficient profit in a dominant position within its industry.
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. Return on Equity ratio
is 20.8%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profit in a dominant position within its industry.
Trend of the average
competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Downtrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.66 |
Impressive |
Industrial
Average |
1.37 |
|
Quick Ratio |
1.11 |
|
|
|
|
Cash Conversion Cycle |
101.50 |
|
|
|
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 1.66 times in 2012, increased from 1.27 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 1.11 times in 2012,
increased from 0.99 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 102 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.57 |
Acceptable |
Industrial
Average |
0.50 |
|
Debt to Equity Ratio |
1.30 |
Risky |
Industrial
Average |
0.94 |
|
Times Interest Earned |
16.22 |
Impressive |
Industrial
Average |
1.20 |
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 16.23 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 0.57 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 Downtrend
Times Interest Earned Downtrend
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
31.48 |
Impressive |
Industrial
Average |
1.55 |
|
Total Assets Turnover |
1.97 |
Impressive |
Industrial
Average |
1.83 |
|
Inventory Conversion Period |
59.11 |
|
|
|
|
Inventory Turnover |
6.17 |
Acceptable |
Industrial
Average |
8.85 |
|
Receivables Conversion Period |
87.52 |
|
|
|
|
Receivables Turnover |
4.17 |
Impressive |
Industrial
Average |
3.74 |
|
Payables Conversion Period |
45.13 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.17 and 4.59 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 56 days at the
end of 2011 to 59 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 6.54 times in year 2011 to 6.17 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.97 times and 1.52
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 Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.02 |
|
|
1 |
Rs.102.04 |
|
Euro |
1 |
Rs.84.92 |
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.