MIRA
INFORM REPORT
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Report Date : |
06.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
REAL HAI GEMS LIMITED |
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Registered Office : |
31/3 Trok Vaiti,
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
1986 |
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Com. Reg. No.: |
0105529019748 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Distributor and Exporter of Diamond and Gemstones |
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No. of Employees : |
8 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
REAL HAI GEMS
LIMITED
SUMMARY
BUSINESS ADDRESS : 31/3 TROK VAITI,
SILOM ROAD, SILOM,
BANGRAK, BANGKOK
10500,
TELEPHONE : [66]
2234-2468, 2238-3188, 2238-3351,
2235-2861
FAX : [66] 2236-2650,
2235-3675
E-MAIL ADDRESS : realthai@ksc.th.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1986
REGISTRATION NO. : 0105529019748 [Former: 1974/2529]
TAX ID NO. : 0105529019748
CAPITAL REGISTERED : BHT. 11,000,000
CAPITAL PAID-UP : BHT.
11,000,000
SHAREHOLDER’S PROPORTION : THAI
: 54.54%
INDIAN : 45.46%
FISCAL YEAR CLOSING
DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
ASHOK KUMAR GUPTA,
INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 8
LINES OF BUSINESS : DIAMOND AND
GEMSTONES
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD FOR NORMAL
BUSINESS ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was
established on June
11, 1986 as
a private limited
company under the
name style REAL
THAI GEMS LIMITED
by Thai and
Indian groups, in
order to distribute
diamond and gemstones
to both domestic
and overseas markets. It
currently employs 8
staff.
The subject’s registered
address is 31/3
Trok Vaiti, Silom
Road, Silom, Bangrak,
Bangkok 10500, and
this is the
company’s current operation
address.
THE BOARD
OF DIRECTORS
Mr. Ashok Kumar
Gupta
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with the company’s
affixed.
MANAGEMENT
Mr. Ashok Kumar
Gupta is the
Managing Director.
He is Indian
nationality with the
age of 47
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing,
distributing and exporting
of diamonds and
precious stones, such
as emerald, ruby,
sapphire and others
for jewelry productions,
as well as
jewelry products.
PURCHASE
The products are
purchased from both
local and overseas
suppliers in India,
Hong Kong, Japan,
Pakistan and Republic
of China.
MAJOR SUPPLIERS
Gupta Jewel Corporation
: India
Thai Fine Gems
& Jewelry Ltd. : Thailand
SALES [LOCAL]
The products are
sold locally to
jewelry manufactures.
EXPORT [COUNTRIES]
The subject also
exports Thai jewelry and
gemstones to United
States of America,
Hong Kong, Japan, and European
countries.
MAJOR CUSTOMER
GRK Gems Inc. : United
States of America
SUBSIDIARIES &
AFFILIATED COMPANY
The subject is
not found to
have subsidiaries 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 according
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.
Exports are against
T/T.
BANKING
Kasikornbank Public Co.,
Ltd.
[Silom Branch
: Silom Rd.,
Silom, Bangrak, Bangkok
10500]
EMPLOYMENT
The subject employs
8 office and
sales staff.
LOCATION DETAILS
The premise is owned
for administrative office at
the heading address.
Premise is located
in a prime
commercial area.
COMMENT
Slow consumption and shrinking
purchasing power in
domestic market have
resulted to slow
sales of luxury products including
jewelry, diamond and gemstones. Subject
reported a slow sales
in 2012 compared to the previous
year, while overall
jewelry market is
sluggish from economy slowdown and
political conflict.
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
followings:
Bht. 5,000,000 on
August 19, 1995
Bht. 10,000,000 on
February 10, 1998
Bht. 11,000,000 on
August 27, 1998
The latest registered
capital was increased
to Bht. 11,000,000 divided
into 110,000 shares of
Bht. 100 each with
fully paid.
MAIN SHAREHOLDERS
[as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Ashok Kumar
Gupta Nationality: Indian Address : 31/3
Trok Vaiti, Silom Rd.,
Silom, Bangrak,
Bangkok 10500 |
50,000 |
45.46 |
|
Ms. Atcha Gupta Nationality: Thai Address : 31/3
Trok Vaiti, Silom Rd.,
Silom, Bangrak,
Bangkok 10500 |
20,000 |
18.18 |
|
Mr. Anurak Gupta Nationality: Thai Address : 31/3
Trok Vaiti, Silom Rd.,
Silom, Bangrak,
Bangkok 10500 |
20,000 |
18.18 |
|
Ms. Annika Gupta Nationality: Thai Address : 31/3
Trok Vaiti, Silom Rd.,
Silom, Bangrak,
Bangkok 10500 |
20,000 |
18.18 |
Total Shareholders : 4
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
60,000 |
54.54 |
|
Indian |
1 |
50,000 |
45.46 |
|
Total |
4 |
110,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mr. Suchart Srimunjantha
No. 3549
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2012,
2011 & 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
2,961,858.64 |
2,829,278.00 |
4,884,800.52 |
|
Trade Accounts Receivable
|
21,556,884.77 |
17,362,997.78 |
24,644,383.14 |
|
Inventories |
25,682,998.24 |
22,516,095.39 |
25,024,871.08 |
|
Loans Receivable |
10,000,000.00 |
6,900,000.00 |
- |
|
Other Current Assets |
42,211.74 |
349,236.74 |
- |
|
|
|
|
|
|
Total Current Assets
|
60,243,953.39 |
49,957,607.91 |
54,554,054.74 |
|
Fixed Assets |
23,242,770.00 |
23,242,770.00 |
23,242,770.00 |
|
Other Assets |
- |
- |
563,670.19 |
|
Total Assets |
83,486,723.39 |
73,200,377.91 |
78,360,494.93 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable |
23,820,883.19 |
12,660,734.98 |
16,935,733.39 |
|
Accrued Income Tax |
248,122.18 |
414,398.32 |
- |
|
Accrued Expenses |
50,335.31 |
40,519.79 |
375,112.00 |
|
|
|
|
|
|
Total Current Liabilities |
24,119,340.68 |
13,115,653.09 |
17,310,845.39 |
|
Loan from Bank |
9,501,759.00 |
11,038,432.27 |
12,521,396.20 |
|
Total Liabilities |
33,621,099.68 |
24,154,085.36 |
29,832,241.59 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 110,000 shares |
11,000,000.00 |
11,000,000.00 |
11,000,000.00 |
|
|
|
|
|
|
Capital Paid |
11,000,000.00 |
11,000,000.00 |
11,000,000.00 |
|
Retained Earning -
Unappropriated |
38,865,623.71 |
38,046,292.55 |
37,528,253.34 |
|
Total Shareholders' Equity |
49,865,623.71 |
49,046,292.55 |
48,528,253.34 |
|
Total Liabilities &
Shareholders' Equity |
83,486,723.39 |
73,200,377.91 |
78,360,494.93 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
68,831,432.92 |
72,244,623.56 |
63,694,734.29 |
|
Other Income |
582,008.24 |
454,145.34 |
352,830.08 |
|
Total Revenues |
69,413,441.16 |
72,698,768.90 |
64,047,564.37 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
61,439,691.13 |
64,639,916.45 |
57,314,855.77 |
|
Selling Expenses |
1,508,391.57 |
1,583,323.99 |
835,777.87 |
|
Administrative Expenses |
3,929,160.17 |
4,144,005.41 |
3,969,066.53 |
|
Total Expenses |
66,877,242.87 |
70,367,245.85 |
62,119,700.17 |
|
|
|
|
|
|
Profit / [Loss] before Interest
Expenses & Income
Tax |
2,536,198.29 |
2,331,523.05 |
1,927,864.20 |
|
Interest Expenses |
[1,158,244.95] |
[1,090,085.52] |
[900,443.99] |
|
Profit / [Loss] before Income
Tax |
1,377,953.34 |
1,241,437.53 |
1,027,420.21 |
|
Income Tax |
[558,622.18] |
[723,398.32] |
[635,909.67] |
|
|
|
|
|
|
Net Profit / [Loss] |
819,331.18 |
518,039.21 |
391,510.54 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.50 |
3.81 |
3.15 |
|
QUICK RATIO |
TIMES |
1.43 |
2.07 |
1.71 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.96 |
3.11 |
2.74 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.82 |
0.99 |
0.81 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
152.58 |
127.14 |
159.37 |
|
INVENTORY TURNOVER |
TIMES |
2.39 |
2.87 |
2.29 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
114.31 |
87.72 |
141.22 |
|
RECEIVABLES TURNOVER |
TIMES |
3.19 |
4.16 |
2.58 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
141.51 |
71.49 |
107.85 |
|
CASH CONVERSION CYCLE |
DAYS |
125.37 |
143.37 |
192.74 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
89.26 |
89.47 |
89.98 |
|
SELLING & ADMINISTRATION |
% |
7.90 |
7.93 |
7.54 |
|
INTEREST |
% |
1.68 |
1.51 |
1.41 |
|
GROSS PROFIT MARGIN |
% |
11.58 |
11.15 |
10.57 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.68 |
3.23 |
3.03 |
|
NET PROFIT MARGIN |
% |
1.19 |
0.72 |
0.61 |
|
RETURN ON EQUITY |
% |
1.64 |
1.06 |
0.81 |
|
RETURN ON ASSET |
% |
0.98 |
0.71 |
0.50 |
|
EARNING PER SHARE |
BAHT |
7.45 |
4.71 |
3.56 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.40 |
0.33 |
0.38 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.67 |
0.49 |
0.61 |
|
TIME INTEREST EARNED |
TIMES |
2.19 |
2.14 |
2.14 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(4.72) |
13.42 |
|
|
OPERATING PROFIT |
% |
8.78 |
20.94 |
|
|
NET PROFIT |
% |
58.16 |
32.32 |
|
|
FIXED ASSETS |
% |
- |
- |
|
|
TOTAL ASSETS |
% |
14.05 |
(6.59) |
|
ANNUAL GROWTH : SATISFACTORY
An annual sales growth is -4.72%. Turnover has decreased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.58 |
Impressive |
Industrial Average |
10.08 |
|
Net Profit Margin |
1.19 |
Impressive |
Industrial Average |
0.43 |
|
Return on Assets |
0.98 |
Deteriorated |
Industrial Average |
2.89 |
|
Return on Equity |
1.64 |
Deteriorated |
Industrial Average |
8.18 |
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 11.58%. 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 1.19% 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. When compared with the
industry average, it was lower, the
company's figure is 0.98%.
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 1.64%.
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 |
2.50 |
Impressive |
Industrial Average |
2.20 |
|
Quick Ratio |
1.43 |
|
|
|
|
Cash Conversion Cycle |
125.37 |
|
|
|
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 2.5 times in 2012, decreased from 3.81 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 1.43 times in 2012,
decreased from 2.07 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 126 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.40 |
Impressive |
Industrial Average |
0.64 |
|
Debt to Equity Ratio |
0.67 |
Impressive |
Industrial Average |
1.79 |
|
Times Interest Earned |
2.19 |
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 2.19 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 0.4 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 Stable
ACTIVITY : ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.96 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.82 |
Deteriorated |
Industrial Average |
6.65 |
|
Inventory Conversion Period |
152.58 |
|
|
|
|
Inventory Turnover |
2.39 |
Deteriorated |
Industrial Average |
10.80 |
|
Receivables Conversion Period |
114.31 |
|
|
|
|
Receivables Turnover |
3.19 |
Deteriorated |
Industrial Average |
15.99 |
|
Payables Conversion Period |
141.51 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.19 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 127 days at the
end of 2011 to 153 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 2.87 times in year 2011 to 2.39 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.82 times and 0.99
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 Stable
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.60.87 |
|
|
1 |
Rs.102.67 |
|
Euro |
1 |
Rs.81.70 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
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.