MIRA
INFORM REPORT
|
Report Date : |
19.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
LOHATHAI STAINLESS CO., LTD. |
|
|
|
|
Registered Office : |
1570/3 Pracharat 1 Road, Bangsue, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
28.02.2013 |
|
|
|
|
Date of Incorporation : |
12.05.1995 |
|
|
|
|
Com. Reg. No.: |
0105538057509 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in distributing and
exporting wide range
of stainless steel
scraps, nickel scraps
and other metal
scraps. |
|
|
|
|
No. of Employees : |
100 |
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 : |
No complaints |
|
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 and address
LOHATHAI
STAINLESS CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 1570/3 PRACHARAT
1 ROAD, BANGSUE,
BANGKOK
10800
TELEPHONE : [66] 2913-2197-9,
2585-2650, 2585-9811, 087
494-7515
FAX :
[66] 2587-5420
E-MAIL
ADDRESS : sales@lts.co.th
thanawat@lts.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1995
REGISTRATION
NO. : 0105538057509
[Former : [1] 1272/2538]
TAX
ID NO. : 3011574478
CAPITAL REGISTERED : BHT. 200,000,000
CAPITAL PAID-UP : BHT.
200,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : FEBRUARY 28
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
DAMRONG KENGRUNGRUANGCHAI, THAI
MANAGING
DIRECTOR
NO.
OF STAFF : 100
LINES
OF BUSINESS : STAINLESS STEEL
SCRAP
DISTRIBUTOR
AND EXPORTER
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 May 12,
1995 as a
private limited company
under the name
style “LOHATHAI STAINLESS
CO., LTD.” by
Thai groups, with
the initial business
objective as a
manufacturer, importer and
distributor of stainless
steel products to local
market. At present,
its business becomes
a distributor and
exporter of metal
scrap. It currently employs
approximately 100 staff.
The subject’s registered address
is 1570/3 Pracharat 1
Rd., Bangsue, Bangkok 10800, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Damrong Kengrungruangchai |
|
Thai |
62 |
|
Mr. Boriboon Kengrungruangchai |
|
Thai |
35 |
|
Ms. Suwanna Kengrungruangchai |
|
Thai |
33 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Damrong Kengrungruangchai is
the Managing Director.
He is Thai nationality with
the age of 62 years
old.
Mr. Boriboon Kengrungruangchai is
the Deputy Managing
Director.
He is Thai
nationality with the
age of 35
years old.
Mr. Thanawat Panpairoj
is the Sales
& Marketing Manager.
He is Thai
nationality.
Ms. Suwanna Kengrungruangchai is
the General Manager.
She is Thai
nationality with the
age of 33
years old.
BUSINESS OPERATIONS
The subject is
engaged in distributing
and exporting wide
range of stainless
steel scraps, nickel
scraps and other
metal scraps. The
products include stainless
steel turning #304,
stainless scrap # 430,
heavy cutting stainless
steel # 304 and stainless
scrap # 304.
PURCHASE
100% of the
products is purchased
from local general
industries and suppliers.
EXPORT [COUNTRIES]
60% of the
products is exported
to Japan, India,
Korea, Taiwan, Republic
of China, Malaysia,
Hong Kong and
United States of
America.
SALES [LOCAL]
40% of the
products is sold
locally by wholesale
to manufacturers and
wholesalers.
MAJOR CUSTOMER
Cronimet Corporation :
United Sates of
America
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 according to
IRICO’S DATABASE 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.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Nonthaburi Branch
: Nonthaburi Province]
EMPLOYMENT
The
subject currently employs
approximately 100 staff.
LOCATION DETAILS
The
premise is owned
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Branches
[warehouse]
- 47/1
Moo 7, T. Suanyai,
A. Muang, Nonthaburi
11000
- 38/3
Moo 6, Nakornin
Rd., T. Bangkhunkong,
A. Bangkruay, Nonthaburi
11130
Tel.: [66] 2459-5449-53,
Fax: [66] 2459-5056
COMMENT
The
subject is one
of the leaders
in stainless steel
crap business. Subject’s
operating performance was
excellent in 2012
and 2013. Metal scrap
is in strong demand
especially in overseas, e.g. Japan. With
strong consumption both domestic
and export markets, subject has
outstanding sales and
services.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 1,000,000
divided into 100 shares
of Bht. 10,000
each.
The
capital was increased
later as following:
Bht. 10,000,000
on August 22,
2000
Bht. 30,000,000
on July 22,
2003
Bht. 50,000,000
on August 23,
2004
Bht. 200,000,000
on February 22,
2007
The
latest registered capital
was increased to
Bht. 200,000,000 divided into
20,000 shares of
Bht. 10,000 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE: [as at
June 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
Mr. Damrong
Kengrungruangchai
Nationality: Thai Address : 38/3
Moo 6, T. Bangkhunkong, A. Bangkruay,
Nonthaburi |
10,000 |
50.00 |
Mrs. Sumalee
Kengrungruangchai
Nationality: Thai Address : 38/3
Moo 6, T. Bangkhunkong, A. Bangkruay,
Nonthaburi |
4,000 |
20.00 |
Ms. Suwanna
Kengrungruangchai
Nationality: Thai Address : 38/3
Moo 6, T. Bangkhunkong, A. Bangkruay,
Nonthaburi |
3,000 |
15.00 |
Mr. Boriboon
Kengrungruangchai
Nationality: Thai Address : 38/3
Moo 6, T. Bangkhunkong, A. Bangkruay,
Nonthaburi |
3,000 |
15.00 |
Total Shareholders : 4
Share Structure [as
at June 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
20,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
4 |
20,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Natthapol Areeprasertsuk No.
3988
BALANCE SHEET [BAHT]
The
latest financial figures
published for February
28, 2013; February
29 2012 &
February 28, 2011
were:
ASSETS
|
Current Assets |
Feb. 28,
2013 |
Feb. 29,
2012 |
Feb. 28,
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
40,980,811.76 |
10,179,458.27 |
1,627,427.70 |
|
Trade Accounts Receivable
& Postdated Cheque |
367,386,943.94 |
322,684,326.68 |
321,704,737.92 |
|
Short-term Lending to Directors |
173,600,000.00 |
45,300,000.00 |
- |
|
Inventories |
388,160,116.56 |
354,098,350.95 |
365,623,520.02 |
|
Receivable-Revenue Department |
53,690,575.84 |
16,017,860.94 |
35,232,820.91 |
|
Other Current Assets
|
48,522,127.02 |
17,880,758.36 |
20,184,774.12 |
|
Total Current Assets
|
1,072,340,575.12 |
766,160,755.20 |
744,373,280.67 |
|
|
|
|
|
|
Fixed Assets |
71,938,420.57 |
76,681,760.49 |
82,213,730.76 |
|
Deposit |
3,000.00 |
3,000.00 |
3,000.00 |
|
Total Assets |
1,144,281,995.69 |
842,845,515.69 |
826,590,011.43 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
Feb. 28,
2013 |
Feb. 29,
2012 |
Feb. 28,
2011 |
|
|
|
|
|
|
Bank Overdraft and Short-term
Loan from Financial Institution |
791,838,521.51 |
513,081,019.47 |
525,991,552.28 |
|
Trade Accounts Payable & Postdated Cheque |
89,182,536.54 |
60,603,879.06 |
31,338,376.17 |
|
Current Portion of Hire-Purchase Contract Payable |
2,265,786.84 |
2,576,336.55 |
3,867,232.13 |
|
Short-term Loan from
Related Person |
- |
12,500,000.00 |
14,870,000.00 |
|
Accrued Income Tax |
1,288,509.58 |
1,006,852.02 |
4,187,392.08 |
|
Other Current Liabilities |
8,069,183.24 |
10,279,427.02 |
9,683,313.53 |
|
Total Current Liabilities |
892,644,537.71 |
600,047,514.12 |
589,937,866.19 |
|
|
|
|
|
|
Hire-Purchase Contract Payable -
Net of Current
Portion |
2,412,796.29 |
2,961,588.83 |
5,044,323.52 |
|
Total Liabilities |
895,057,334.00 |
603,009,102.95 |
594,982,189.71 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10,000
par value authorized, issued
and fully paid share
capital 20,000 shares
|
200,000,000.00 |
200,000,000.00 |
200,000,000.00 |
|
Capital Paid |
200,000,000.00 |
200,000,000.00 |
200,000,000.00 |
|
Retained Earning -
Unappropriated |
49,224,661.69 |
39,836,412.74 |
31,607,821.72 |
|
Total Shareholders' Equity |
249,224,661.69 |
239,836,412.74 |
231,607,821.72 |
|
Total Liabilities & Shareholders' Equity |
1,144,281,995.69 |
842,845,515.69 |
826,590,011.43 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
Feb. 28,
2013 |
Feb. 29,
2012 |
Feb. 28,
2011 |
|
|
|
|
|
|
Sales |
2,831,614,060.62 |
2,155,262,958.69 |
2,665,036,470.06 |
|
Gain on Exchange Rate |
25,032,163.67 |
6,958,991.24 |
21,696,177.35 |
|
Other Income |
2,560,240.92 |
4,232,853.74 |
3,070,770.08 |
|
Total Revenues |
2,859,206,465.21 |
2,166,454,803.67 |
2,689,803,417.49 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,655,587,144.14 |
1,998,183,370.17 |
2,472,154,114.40 |
|
Selling Expenses |
94,410,327.66 |
77,148,744.57 |
122,163,315.56 |
|
Administrative Expenses |
68,304,419.61 |
59,618,701.19 |
53,325,988.88 |
|
Total Expenses |
2,818,301,891.41 |
2,134,950,815.93 |
2,647,643,418.84 |
|
Profit / [Loss] before Financial Cost & Income Tax |
40,904,573.80 |
31,503,987.74 |
42,159,998.65 |
|
Financial Cost |
[27,595,647.43] |
[18,801,295.72] |
[14,776,076.61] |
|
Profit / [Loss] before Income Tax |
13,308,926.37 |
12,702,692.02 |
27,383,922.04 |
|
Income Tax |
[4,088,103.79] |
[4,474,101.00] |
[8,901,525.46] |
|
Net Profit / [Loss] |
9,220,822.58 |
8,228,591.02 |
18,482,396.58 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.20 |
1.28 |
1.26 |
|
QUICK RATIO |
TIMES |
0.65 |
0.63 |
0.55 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
39.36 |
28.11 |
32.42 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.47 |
2.56 |
3.22 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
53.35 |
64.68 |
53.98 |
|
INVENTORY TURNOVER |
TIMES |
6.84 |
5.64 |
6.76 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
47.36 |
54.65 |
44.06 |
|
RECEIVABLES TURNOVER |
TIMES |
7.71 |
6.68 |
8.28 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
12.26 |
11.07 |
4.63 |
|
CASH CONVERSION CYCLE |
DAYS |
88.45 |
108.26 |
93.42 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
93.78 |
92.71 |
92.76 |
|
SELLING & ADMINISTRATION |
% |
5.75 |
6.35 |
6.58 |
|
INTEREST |
% |
0.97 |
0.87 |
0.55 |
|
GROSS PROFIT MARGIN |
% |
7.19 |
7.81 |
8.17 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.44 |
1.46 |
1.58 |
|
NET PROFIT MARGIN |
% |
0.33 |
0.38 |
0.69 |
|
RETURN ON EQUITY |
% |
3.70 |
3.43 |
7.98 |
|
RETURN ON ASSET |
% |
0.81 |
0.98 |
2.24 |
|
EARNING PER SHARE |
BAHT |
461.04 |
411.43 |
924.12 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.78 |
0.72 |
0.72 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.59 |
2.51 |
2.57 |
|
TIME INTEREST EARNED |
TIMES |
1.48 |
1.68 |
2.85 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
31.38 |
(19.13) |
|
|
OPERATING PROFIT |
% |
29.84 |
(25.28) |
|
|
NET PROFIT |
% |
12.06 |
(55.48) |
|
|
FIXED ASSETS |
% |
(6.19) |
(6.73) |
|
|
TOTAL ASSETS |
% |
35.76 |
1.97 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 31.38%.
Turnover has increased from THB 2,155,262,958.69 in 2012 to THB 2,831,614,060.62
in 2013. While net profit has increased from THB 8,228,591.02 in 2012 to THB
9,220,822.58 in 2013. And total assets has increased from THB 842,845,515.69 in
2012 to THB 1,144,281,995.69 in 2013.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
7.19 |
Impressive |
Industrial
Average |
5.40 |
|
Net Profit Margin |
0.33 |
Deteriorated |
Industrial
Average |
0.66 |
|
Return on Assets |
0.81 |
Deteriorated |
Industrial
Average |
2.17 |
|
Return on Equity |
3.70 |
Acceptable |
Industrial
Average |
5.81 |
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 7.19%. 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 0.33%. 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 0.81%.
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 3.7%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.20 |
Acceptable |
Industrial
Average |
1.63 |
|
Quick Ratio |
0.65 |
|
|
|
|
Cash Conversion Cycle |
88.45 |
|
|
|
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 1.2 times in 2013, decreased from 1.28 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 0.65 times in 2013,
increased from 0.63 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 89 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.78 |
Acceptable |
Industrial
Average |
0.62 |
|
Debt to Equity Ratio |
3.59 |
Risky |
Industrial
Average |
1.73 |
|
Times Interest Earned |
1.48 |
Impressive |
Industrial
Average |
0.07 |
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 1.49 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 0.78 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 |
39.36 |
Impressive |
Industrial
Average |
(2.63) |
|
Total Assets Turnover |
2.47 |
Satisfactory |
Industrial
Average |
2.93 |
|
Inventory Conversion Period |
53.35 |
|
|
|
|
Inventory Turnover |
6.84 |
Impressive |
Industrial
Average |
4.26 |
|
Receivables Conversion Period |
47.36 |
|
|
|
|
Receivables Turnover |
7.71 |
Impressive |
Industrial
Average |
5.32 |
|
Payables Conversion Period |
12.26 |
|
|
|
The company's Account Receivable Ratio is calculated as 7.71 and 6.68 in
2013 and 2012 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 2013
increased from 2012. 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 65 days at the
end of 2012 to 53 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 5.64 times in year 2012 to 6.84 times
in year 2013.
The company's Total Asset Turnover is calculated as 2.47 times and 2.56
times in 2013 and 2012 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 Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.12 |
|
|
1 |
Rs.103.93 |
|
Euro |
1 |
Rs.85.17 |
INFORMATION DETAILS
|
Report
Prepared by : |
NNA |
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.