MIRA
INFORM REPORT
|
Report Date : |
04.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
AGRO
CHEMICALS INDUSTRY CO.,
LTD. |
|
|
|
|
Registered Office : |
339
Songsawad Road, Samphantawong, Bangkok 10100 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
19.12.1977 |
|
|
|
|
Com. Reg. No.: |
0105520018617 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
engaged in
manufacturing and distributing various
kinds of crop protection chemicals,
such as insecticide, herbicide,
fungicide & acaricide. |
|
|
|
|
No. of Employees : |
150 |
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 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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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
AGRO CHEMICALS INDUSTRY
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 339
SONGSAWAD ROAD, SAMPHANTAWONG,
BANGKOK 10100,
THAILAND
TELEPHONE : [66] 2233-8191
FAX :
[66] 2639-1809
E-MAIL
ADDRESS : crop_protection@chiataigroup.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1977
REGISTRATION
NO. : 0105520018617
TAX
ID NO. : 3101086539
CAPITAL REGISTERED : BHT. 25,000,000
CAPITAL PAID-UP : BHT.
25,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. MANU CHIARAVANOND,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 150
LINES
OF BUSINESS : AGRO
CHEMICALS
MANUFACTURER 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 December 19,
1977 as a
private limited company
under the registered
name AGRO CHEMICALS
INDUSTRY CO., LTD.,
by Thai groups,
with the business
objective to manufacture and
distribute various kinds
of agro chemicals
to domestic market.
It currently employs
approximately 150 staff.
The
subject is a
wholly owned subsidiary
of Chia Tai
Co., Ltd., which is
the parent
company of
Chia Tai Group.
The
subject’s registered address
is 339 Songsawad
Road, Samphantawong, Bangkok 10100, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Charan Chiaravanont |
|
Thai |
84 |
|
Mr. Wallop Chiaravanont |
|
Thai |
71 |
|
Mr. Pongthep Chiaravanont |
|
Thai |
64 |
|
Mr. Manu Chiaravanond |
|
Thai |
60 |
|
Mr. Manas Chiaravanond |
|
Thai |
58 |
|
Mr. Min Thienvorn |
|
Thai |
78 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Manu Chiaravanond is
the Managing Director.
He is Thai
nationality with the
age of 60
years old.
Mr. Suchin Iamwiriyawat is
the Business Department
Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing and distributing
various kinds of
crop protection chemicals, such
as insecticide, herbicide,
fungicide & acaricide with more
than 60 brands.
PURCHASE
100%
of raw materials
and chemicals are
purchased from local
suppliers.
SALES
100% of the
products is sold
locally to wholesalers
and end-users.
SUBSIDIARY AND AFFILIATED
COMPANIES
The Chia Tai
Group, consists of:
Choncharoen Farm Co.,
Ltd.
Business Type :
Research and development
of seed production
South-East Agricultural Co.,
Ltd.
Business Type :
Distributor of fertilizer
and crop protection
chemicals
Chia Tai Seeds
Co., Ltd.
Business Type :
Importer and exporter
of seed, fertilizer,
and crop protection
chemicals
Chia Tai Cultivation
Technology Co., Ltd.
Business Type :
Distributor of greenhouse
equipment and irrigation
system
Chia Tai Produce
Co., Ltd.
Business Type :
Manufacturer and distributor
of vegetables, fruits
and seed products
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.
BANKING
Bangkok
Bank Public Co.,
Ltd.
Kasikornbank
Public Co., Ltd.
EMPLOYMENT
The
subject currently employs
approximately 150 staff.
LOCATION
DETAILS
The
premise is owned
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Factory
and warehouse are
located at 170
Moo 9, Karnchana-Saiyok Road,
T. Wangdang, A. Muang, Karnchanaburi
71000.
COMMENT
Subject
is a manufacture
and distributor of
agro chemicals. The
products are for
local markets. Subject
reported slow sales
income in 2012
while its business
performance in 2013 had improved
subsequently. However, its
products are also
supplied to its
affiliated companies.
FINANCIAL INFORMATION
The
capital was registered at Bht. 1,000,000 divided into 1,000
shares of Bht. 1,000
each with fully
paid.
The
capital was increased
later as follows:
Bht. 20,000,000
on June 2,
1980
Bht. 25,000,000
on December 30,
1985
The
latest registered capital
was increased to
Bht. 25,000,000 divided
into 25,000 shares
of Bht. 1,000 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Chia Tai Co.,
Ltd. Nationality: Thai Address : 299-301
Songsawad Road,
Samphantawong, Bangkok |
24,992 |
99.97 |
|
Mr. Charan Chiaravanont Nationality: Thai Address : 10
Soi Navathani 8,
Sukhapiban Road,
Kannayao, Buengkum, Bangkok
|
1 |
|
|
Mr. Montri Jiaravanont Nationality: Thai Address : 299-301
Songsawad Road,
Samphantawong, Bangkok |
1 |
|
|
Mr. Sumet Jiaravanon Nationality: Thai Address : 18/59
Wireless Road, Lumpini,
Pathumwan, Bangkok |
1 |
|
|
Mr. Dhanin Chiaravanont Nationality: Thai Address : 88
Moo 17, T. Bangpleeyai, A. Bangplee,
Samutprakarn |
1 |
= 0.03 |
|
Mr. Pongthep Chiaravanont Nationality: Thai Address : 45
Soi Saengngern, Sukhumvit
55 Road,
Klongtonnua, Klongtoey, Bangkok
|
1 |
|
|
Mr. Manu Chiaravanond Nationality: Thai Address : 193
Soi Sukhumvit 49,
Klongtoeynua, Wattana, Bangkok |
1 |
|
|
Mr. Manas Chiaravanond Nationality: Thai Address : 18/1-2
Soi Sukhumvit 49,
Klongtoeynua,
Wattana, Bangkok |
1 |
|
|
Mr. Wallop Chiaravanont Nationality: Thai Address : 1
Soi Phaholyothin 41,
Ladyao, Jatuchak, Bangkok |
1 |
|
Total Shareholders : 9
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
9 |
25,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
9 |
25,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Santi Maneewong No.
6182
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
|
818,978.37 |
1,175,536.90 |
937,621.23 |
|
Short-term Investment |
- |
40,000,000.00 |
- |
|
Trade Account & Other
Receivable |
14,341,688.59 |
2,108,282.24 |
32,800,785.62 |
|
Inventories |
38,840,354.31 |
3,197,789.10 |
40,154,675.82 |
|
Other Current Assets
|
145,164.77 |
- |
- |
|
|
|
|
|
|
Total Current Assets
|
54,146,186.04 |
46,481,608.24 |
73,893,082.67 |
|
Fixed Assets |
14,831,912.33 |
7,530,057.10 |
7,260,649.51 |
|
Other Non-current Assets |
104,298.83 |
- |
- |
|
Total Assets |
69,082,397.19 |
54,011,665.34 |
81,153,732.18 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Bank |
1,272,597.27 |
130,857.63 |
- |
|
Trade Account & Other
Payable |
16,427,390.67 |
601,252.28 |
26,766,535.05 |
|
Short-term Loan |
7,000,000.00 |
- |
- |
|
Accrued Income Tax |
- |
100,937.12 |
2,589,503.61 |
|
|
|
|
|
|
Total Current Liabilities |
24,699,987.94 |
833,047.03 |
29,356,038.66 |
|
Total Liabilities |
24,699,987.94 |
833,047.03 |
29,356,038.66 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
value authorized, issued
and fully paid share
capital 25,000 shares |
25,000,000.00 |
25,000,000.00 |
25,000,000.00 |
|
|
|
|
|
|
Capital Paid |
25,000,000.00 |
25,000,000.00 |
25,000,000.00 |
|
Retained Earning |
|
|
|
|
- Statutory Reserve |
2,500,000.00 |
2,500,000.00 |
2,500,000.00 |
|
- Unappropriated [Deficit] |
16,882,409.25 |
25,678,618.31 |
24,297,693.52 |
|
Total Shareholders' Equity |
44,382,409.25 |
53,178,618.31 |
51,797,693.52 |
|
Total Liabilities & Shareholders' Equity |
69,082,397.19 |
54,011,665.34 |
81,153,732.18 |
PROFIT & LOSS
ACCOUNT
|
Sale |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
69,188,302.00 |
204,217,308.60 |
221,185,864.00 |
|
Other Income |
2,011,477.91 |
837,872.97 |
1,807,794.44 |
|
Total Sales |
71,199,779.91 |
205,055,181.57 |
222,993,658.44 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
68,505,680.72 |
189,538,146.92 |
201,511,560.92 |
|
Selling & Administrative Expenses |
10,774,202.41 |
13,585,172.74 |
9,302,365.61 |
|
Total Expenses |
79,279,883.13 |
203,123,319.66 |
210,813,926.53 |
|
|
|
|
|
|
Profit / Loss] before Financial
Cost & Income Tax |
[8,080,103.22] |
1,931,861.91 |
12,179,731.92 |
|
Financial Cost |
[716,105.84] |
- |
- |
|
|
|
|
|
|
Profit / [Loss] before Income Tax
|
[8,796,209.06] |
1,931,861.91 |
12,179,731.91 |
|
Income Tax |
- |
[550,937.12] |
[3,642,594.02] |
|
Net Profit / [Loss] |
[8,796,209.06] |
1,380,924.79 |
8,537,137.89 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.19 |
55.80 |
2.52 |
|
QUICK RATIO |
TIMES |
0.61 |
51.96 |
1.15 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.66 |
27.12 |
30.46 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.00 |
3.78 |
2.73 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
206.94 |
6.16 |
72.73 |
|
INVENTORY TURNOVER |
TIMES |
1.76 |
59.27 |
5.02 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
75.66 |
3.77 |
54.13 |
|
RECEIVABLES TURNOVER |
TIMES |
4.82 |
96.86 |
6.74 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
87.53 |
1.16 |
48.48 |
|
CASH CONVERSION CYCLE |
DAYS |
195.08 |
8.77 |
78.38 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
99.01 |
92.81 |
91.11 |
|
SELLING & ADMINISTRATION |
% |
15.57 |
6.65 |
4.21 |
|
INTEREST |
% |
1.04 |
- |
- |
|
GROSS PROFIT MARGIN |
% |
3.89 |
7.60 |
9.71 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(11.68) |
0.95 |
5.51 |
|
NET PROFIT MARGIN |
% |
(12.71) |
0.68 |
3.86 |
|
RETURN ON EQUITY |
% |
(19.82) |
2.60 |
16.48 |
|
RETURN ON ASSET |
% |
(12.73) |
2.56 |
10.52 |
|
EARNING PER SHARE |
BAHT |
(351.85) |
55.24 |
341.49 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.36 |
0.02 |
0.36 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.56 |
0.02 |
0.57 |
|
TIME INTEREST EARNED |
TIMES |
(11.28) |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(66.12) |
(7.67) |
|
|
OPERATING PROFIT |
% |
(518.25) |
(84.14) |
|
|
NET PROFIT |
% |
(736.98) |
(83.82) |
|
|
FIXED ASSETS |
% |
96.97 |
3.71 |
|
|
TOTAL ASSETS |
% |
27.90 |
(33.45) |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -66.12%. Turnover has decreased from THB
204,217,308.60 in 2011 to THB 69,188,302.00 in 2012. While net profit has
decreased from THB 1,380,924.79 in 2011 to THB -8,796,209.06 in 2012. And total
assets has increased from THB 54,011,665.34 in 2011 to THB 69,082,397.19 in
2012.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
3.89 |
Deteriorated |
Industrial Average |
69.03 |
|
Net Profit Margin |
(12.71) |
Deteriorated |
Industrial Average |
2.01 |
|
Return on Assets |
(12.73) |
Deteriorated |
Industrial Average |
3.68 |
|
Return on Equity |
(19.82) |
Deteriorated |
Industrial Average |
10.67 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from sales 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 3.89%. 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 -12.71%.
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 -12.73%.
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 -19.82%.
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 |
2.19 |
Impressive |
Industrial Average |
1.36 |
|
Quick Ratio |
0.61 |
|
|
|
|
Cash Conversion Cycle |
195.08 |
|
|
|
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 2.19 times in 2012, decrease from 55.8 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 0.61 times in 2012,
decrease from 51.96 times, then the company has not enough current assets that
presumably can be quickly converted to cash for pay financial obligations.
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 196 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
SATISFACTORY
LEVERAGE RATIO
|
Debt Ratio |
0.36 |
Impressive |
Industrial Average |
0.65 |
|
Debt to Equity Ratio |
0.56 |
Impressive |
Industrial Average |
1.85 |
|
Times Interest Earned |
(11.28) |
Risky |
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 -11.29 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 0.36 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.66 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.00 |
Acceptable |
Industrial Average |
1.83 |
|
Inventory Conversion Period |
206.94 |
|
|
|
|
Inventory Turnover |
1.76 |
Acceptable |
Industrial Average |
3.00 |
|
Receivables Conversion Period |
75.66 |
|
|
|
|
Receivables Turnover |
4.82 |
Impressive |
Industrial Average |
4.18 |
|
Payables Conversion Period |
87.53 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.82 and 96.86
in 2012 and 2011 respectively. This ratio measures the efficiency of the
company in managing its trade debtors to generate sale. 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 6 days at the end
of 2011 to 207 days at the end of 2012. This represents a negative trend. And
Inventory turnover has decreased from 59.27 times in year 2011 to 1.76 times in
year 2012.
The company's Total Asset Turnover is calculated as 1 time and 3.78 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
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.69 |
|
UK Pound |
1 |
Rs.102.97 |
|
Euro |
1 |
Rs.84.58 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.