MIRA INFORM REPORT
|
Report Date : |
27.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
MALPANI INTERNATIONAL CO., LTD. |
|
|
|
|
Registered Office : |
Room
No. 165, 14th Floor, The
Executive House, Siphaya,
Bangrak, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
03.10.2005 |
|
|
|
|
Com. Reg. No.: |
0105548129839 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
LINE OF BUSINESS : |
ENGAGED IN
IMPORTING, DISTRIBUTING AND EXPORTING VARIOUS
KINDS OF DIAMONDS, GEMSTONES
AND JEWELRY PRODUCTS. |
|
|
|
|
No of Employees : |
3 |
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 – 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 2013.
|
Source
: CIA |
COMPANY NAME
MALPANI
INTERNATIONAL CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
NO. 165, 14th FLOOR, THE
EXECUTIVE HOUSE,
410/165 SURAWONG
ROAD,
SIPHAYA, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2267-5224
FAX :
[66] 2267-5224
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2005
REGISTRATION
NO. : 0105548129839
TAX
ID NO. : 3031952980
CAPITAL REGISTERED : BHT. 2,000,000
CAPITAL PAID-UP : BHT.
2,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. NIKHIL MALPANI,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 3
LINES
OF BUSINESS : DIAMONDS, GEMSTONES
& JEWELRY PRODUCTS
IMPORTER, DISTRIBUTOR
AND EXPORTER
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 October 3,
2005 as a
private limited company under
the registered name
MALPANI INTERNATIONAL CO.,
LTD., by Thai
and Indian groups,
with the business
objective to import,
distribute and export
various kinds of
diamonds, gemstones and
jewelry products. It
currently employs 3
staff.
The
subject’s registered address
is Room No. 165,
14th Floor, The
Executive House, 410/165
Surawong Road, Siphaya, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Nikhil Malpani |
|
Indian |
- |
|
Mrs. Pratueng Buanil |
|
Thai |
- |
AUTHORIZED PERSON
One of the
above directors signs
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Nikhil Malpani is
the Managing Director.
He is Indian
nationality.
BUSINESS OPERATIONS
The subject
is engaged in
importing, distributing and exporting
various kinds of diamonds,
gemstones and jewelry
products.
PURCHASE
The products are
purchased from suppliers
both domestic and
overseas, mainly in
India.
SALES [LOCAL]
The products are
sold locally to
wholesalers and manufacturers.
EXPORT
The products are
exported and re-exported
to Hong Kong and
Republic of China.
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 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 area against
T/T.
BANKING
Krung
Thai 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 had moderate
business in the
past few years.
However, overall jewelry
industry in domestic
market was likely
grown slow in the previous year,
as well as its current
business remains slow
resulting by political
turmoil and shrinking
of consumers’ spending.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000 divided
into 20,000 shares
of Bht. 100 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE :
[as
at April 30,
2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Nikhil Malpani Nationality: Indian Address : Jaipur, India |
9,800 |
49.00 |
|
Mrs. Pratueng Buanil Nationality: Thai Address : 143
Moo 7, T. Pangthiem, A.
Phrathongkam, Nakornratchasima |
1,700 |
8.50 |
|
Mr. Prasopporn Pengsom Nationality: Thai Address : 55/12
Rimklong Bangsakae Road,
Bangkor, Jomthong, Bangkok |
1,700 |
8.50 |
|
Mr. Arthis Ubondee Nationality: Thai Address : 407/6
Rimtangrodfai Road, Taladplu, Thonburi,
Bangkok |
1,700 |
8.50 |
|
Ms. Chantra Rojani Nationality: Thai Address : 19
Banglamphu Road, Taladyod,
Phranakorn, Bangkok |
1,700 |
8.50 |
|
Mr. Pojanarit Songleam Nationality: Thai Address : 31
Wuthakas Road, Bangkor,
Jomthong, Bangkok |
1,700 |
8.50 |
|
Mr. Apichart Laovanichwith Nationality: Thai Address : 22/5
Moo 2, Bangchak,
Pasicharoen, Bangkok |
1,700 |
8.50 |
Total Shareholders : 7
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
10,200 |
51.00 |
|
Foreign |
1 |
9,800 |
49.00 |
|
Total |
7 |
20,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Mr. Saengchai Ularnpanichkul No.
4649
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 |
28,811.54 |
40,095.32 |
21,038.83 |
|
Trade Accounts & Other Receivable |
5,968,884.80 |
8,390,425.63 |
6,529,167.61 |
|
|
|
|
|
|
Total Current Assets
|
5,997,696.34 |
8,430,520.95 |
6,550,206.44 |
|
Total Assets |
5,997,696.34 |
8,430,520.95 |
6,550,206.44 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
2,080,449.52 |
4,812,479.60 |
3,363,409.89 |
|
Accrued Income Tax |
26,453.81 |
27,817.02 |
13,813.40 |
|
|
|
|
|
|
Total Current Liabilities |
2,106,903.33 |
4,840,296.62 |
3,377,223.29 |
|
Total Liabilities |
2,106,903.33 |
4,840,296.62 |
3,377,223.29 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 20,000 shares |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
|
|
|
|
|
Capital Paid |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
1,890,793.01 |
1,590,224.33 |
1,172,983.15 |
|
Total Shareholders' Equity |
3,890,793.01 |
3,590,224.33 |
3,172,983.15 |
|
Total Liabilities & Shareholders' Equity |
5,997,696.34 |
8,430,520.95 |
6,550,206.44 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
11,574,424.78 |
10,528,173.81 |
9,137,928.84 |
|
Other Income |
- |
263,253.61 |
84,479.43 |
|
Total Revenues |
11,574,424.78 |
10,791,427.42 |
9,222,408.27 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
9,868,788.00 |
9,409,400.00 |
7,550,856.22 |
|
Selling Expenses |
537,766.86 |
355,806.35 |
175,180.67 |
|
Administrative Expenses |
816,097.43 |
560,162.87 |
1,088,907.27 |
|
Total Expenses |
11,222,652.29 |
10,325,369.22 |
8,814,944.16 |
|
Profit / [Loss] before Income Tax |
351,772.49 |
466,058.20 |
407,464.11 |
|
Income Tax |
[51,203.81] |
[48,817.02] |
[40,813.40] |
|
|
|
|
|
|
Net Profit / [Loss] |
300,568.68 |
417,241.18 |
366,650.71 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.85 |
1.74 |
1.94 |
|
QUICK RATIO |
TIMES |
2.85 |
1.74 |
1.94 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
- |
- |
- |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.93 |
1.25 |
1.40 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
INVENTORY TURNOVER |
TIMES |
- |
- |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
188.23 |
290.89 |
260.80 |
|
RECEIVABLES TURNOVER |
TIMES |
1.94 |
1.25 |
1.40 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
76.95 |
186.68 |
162.58 |
|
CASH CONVERSION CYCLE |
DAYS |
111.28 |
104.21 |
98.21 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
85.26 |
89.37 |
82.63 |
|
SELLING & ADMINISTRATION |
% |
11.70 |
8.70 |
13.83 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
14.74 |
13.13 |
18.29 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.04 |
4.43 |
4.46 |
|
NET PROFIT MARGIN |
% |
2.60 |
3.96 |
4.01 |
|
RETURN ON EQUITY |
% |
7.73 |
11.62 |
11.56 |
|
RETURN ON ASSET |
% |
5.01 |
4.95 |
5.60 |
|
EARNING PER SHARE |
BAHT |
15.03 |
20.86 |
18.33 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.35 |
0.57 |
0.52 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.54 |
1.35 |
1.06 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
9.94 |
15.21 |
|
|
OPERATING PROFIT |
% |
(24.52) |
14.38 |
|
|
NET PROFIT |
% |
(27.96) |
13.80 |
|
|
FIXED ASSETS |
% |
- |
- |
|
|
TOTAL ASSETS |
% |
(28.86) |
28.71 |
|
ANNUAL GROWTH : RISKY
An annual sales growth is 9.94%. Turnover has increased from THB
10,528,173.81 in 2011 to THB 11,574,424.78 in 2012. While net profit has
decreased from THB 417,241.18 in 2011 to THB 300,568.68 in 2012. And total assets
has decreased from THB 8,430,520.95 in 2011 to THB 5,997,696.34 in 2012.
PROFITABILITY : RISKY
PROFITABILITY RATIO
|
Gross Profit Margin |
14.74 |
Deteriorated |
Industrial Average |
45.56 |
|
Net Profit Margin |
2.60 |
Deteriorated |
Industrial Average |
6.08 |
|
Return on Assets |
5.01 |
Deteriorated |
Industrial Average |
10.38 |
|
Return on Equity |
7.73 |
Acceptable |
Industrial Average |
13.65 |
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 14.74%. 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 2.6%. 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 5.01%.
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 7.73%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
2.85 |
Satisfactory |
Industrial Average |
3.57 |
|
Quick Ratio |
2.85 |
|
|
|
|
Cash Conversion Cycle |
111.28 |
|
|
|
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 2.85 times in 2012, increase from 1.74 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 2.85 times in 2012,
increase from 1.74 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 112 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : SATISFACTORY
LEVERAGE RATIO
|
Debt Ratio |
0.35 |
Acceptable |
Industrial Average |
0.18 |
|
Debt to Equity Ratio |
0.54 |
Impressive |
Industrial Average |
0.22 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.35 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 |
- |
|
Industrial Average |
- |
|
Total Assets Turnover |
1.93 |
Impressive |
Industrial Average |
1.71 |
|
Inventory Conversion Period |
- |
|
|
|
|
Inventory Turnover |
- |
|
Industrial Average |
6.09 |
|
Receivables Conversion Period |
188.23 |
|
|
|
|
Receivables Turnover |
1.94 |
Deteriorated |
Industrial Average |
10.31 |
|
Payables Conversion Period |
76.95 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.94 and 1.25 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
increased from 2011. This would suggest the company had good performance in the
management of its debt collections.
The company's Total Asset Turnover is calculated as 1.93 times and 1.25
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
|
Key Areas |
Score |
Weight |
Weighted
Score |
|
LIQUIDITY RATIO |
2.22 |
25.00 |
55.50 |
|
ACTIVITY RATIO |
2.00 |
20.00 |
40.00 |
|
PROFITABILITY
RATIO |
0.33 |
25.00 |
8.25 |
|
LEVERAGE RATIO |
2.67 |
10.00 |
26.70 |
|
ANNUAL GROWTH |
0.80 |
20.00 |
16.00 |
|
Total Weight (excluding
- - Score) |
|
100.00 |
|
|
|
|
|
146.45 |
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. 62.17 |
|
|
1 |
Rs. 103.38 |
|
Euro |
1 |
Rs. 85.08 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
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.