MIRA
INFORM REPORT
|
Report Date : |
19.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
SIAM MITSUI PTA CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
1995 |
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Com. Reg. No.: |
0105538113808 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Distributor &
Exporter of Purified Terephthalic Acid |
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No. of Employees : |
290 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
|
Very High Risk |
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. 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 in 2013 implemented a nation-wide 300 baht ($10) per day minimum wage policy and deployed 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 recession severely cut Thailand's exports, with most sectors experiencing double-digit drops. In late 2011 Thailand's recovery was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. The government 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 following seven years. This was expected to lead to an economic upsurge but growth has remained slow, in part due to ongoing political unrest and resulting uncertainties. Spending on infrastructure will require re-approval once a new government is seated.
|
Source
: CIA |
Company name
SIAM MITSUI PTA
CO., LTD.
SUMMARY
BUSINESS ADDRESS
: 1 SIAM CEMENT
ROAD, BANGSUE,
BANGKOK 10800,
THAILAND
TELEPHONE : [66]
2586-5283-7
FAX : [66] 2586-5287
REGISTRATION ADDRESS
: SAME AS
BUSINESS ADDRESS
ESTABLISHED : 1995
REGISTRATION NO. : 0105538113808 [FORMER :
[1] 2447/2538]
TAX ID NO. : 3011641385
CAPITAL REGISTERED : BHT. 4,800,000,000
CAPITAL PAID-UP : BHT.
4,800,000,000
SHAREHOLDER’S PROPORTION : THAI
: 49.42%
JAPANESE :
50.58%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SOMMAI SIRILERTSOMBAT, THAI
MANAGING DIRECTOR
NO. OF STAFF : 290
LINES OF BUSINESS : PURIFIED TEREPHTHALIC
ACID
MANUFACTURER, DISTRIBUTOR
& 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 September 25, 1995
as a private
limited company under
the registered name
SIAM MITSUI PTA
CO., LTD., by a
joint venture among
SCG Chemicals Co.,
Ltd. [former : Cementthai
Chemicals Co., Ltd.],
a member of
Siam Cement Public
Company Limited., Mitsui
Chemical, Inc., and
SMH Company Ltd.
in Japan, in
order to produce
Purified Terephthalic Acid
[PTA], for both
domestic and international
markets. It currently
employs approximately 290
staff.
The subject’s registered
address is 1
Siam Cement Rd., Bangsue,
Bangkok 10800, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Cholanat Yanaranop |
|
Thai |
54 |
|
Mr. Chaovalit Ekabut |
|
Thai |
55 |
|
Mr. Sommai Sirilertsombat |
|
Thai |
56 |
|
Mr. Kenji Takahashi |
|
Japanese |
58 |
|
Mr. Keiji Shite |
|
Japanese |
56 |
|
Mr. Kazumasa Izawa |
|
Japanese |
50 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Sommai Sirilertsombat is
the Managing Director.
He is Thai
nationality with the
age of 56
years old.
Mr. Kenji Takahashi
is the Deputy
Managing Director.
He is Japanese
nationality with the
age of 58
years old.
Mr. Sathaporn Singhapan
is the Factory
Manager.
He is Thai
nationality.
Mr. Kasem Deewongcharoen is the
Sales & Marketing Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer,
distributor and exporter
of Purified Terephthalic
Acid [PTA], which
is a key
raw material of
textile polyester, PET
resin and PVC
resin production, and a
widely used in
various applications, such
as fiber [clothing],
PET bottles [soft
drink packaging], films,
tape, and coating
[photographic and recording
materials]. Its production
technology is supplied
by Mitsui Chemicals,
Inc., Japan.
PRODUCTION CAPACITY
Full capacity 800,000
tons/year
PURCHASE
Raw materials are
purchased from suppliers
in both domestic
and overseas, from
Japan, Germany, Malaysia
and France
MAJOR SUPPLIERS
Mitsui Chemicals, Inc. : Japan
SALES [LOCAL]
70% of its
products is sold
locally to manufacturers
and wholesalers.
EXPORT [COUNTRIES]
30% of its products
is exported to
Japan, Singapore, Malaysia,
Republic of China, United
Kingdom, France, Taiwan,
Korea, India, Indonesia,
Vietnam and Hong
Kong.
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 for the
past two years.
BANKING
Kasikornbank Public Co., Ltd.
[Head Office :
1 Kasikorn Lane,
Rajburana Rd., Rajburana,
Bangkok]
EMPLOYMENT
The subject employs
approximately 290 staff. [office staff
and factory workers]
LOCATION DETAILS
The premise is
rented for operating
office at the
heading address in
commercial/residential area. Premise
is shared with
Siam Cement Group.
Factory is located
at 8 Eastern
Industrial Estate, Soi
G-2 Pakornsongkrohrat Rd.,
A. Muang, Rayong
21150, Tel: [66] 38 685-100,
Fax: [66] 38 685-099.
Warehouse is located
at 14/10 Charoenpattana Road,
T. Huaypong, A. Muang, Rayong
21150.
COMMENT
In 2013 economic
slowdown, industrial contraction
and uncertain political
situation were major
events affecting several
local industries. The prolong
political impasse that prompted
new investments and
capacity expansion to be put
on hold as
well as many businesses performance did not
achieve targets as
anticipated. The subject
was generally dull
as industry slowed
down on buying
its products, awaiting
an industrial sector to
resume normal consumption.
FINANCIAL INFORMATION
The capital was
registered at Bht.
1,000,000 divided into
10,000 shares of
Bht. 100 each.
Capital was increased
later as followings
:
Bht. 400,000,000 on
February 27, 1996
Bht. 1,400,000,000
on December 3,
1996
Bht. 2,800,000,000
on October 5,
1997
Bht. 4,800,000,000
on February 25,
2009
The latest registered capital
was increased to Bht. 4,800,000,000 divided
into 48,000,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE
[as at April
10, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mitsui Chemicals, Inc.
Nationality: Japanese Address : Shiodome
City Center, 1-5-2
Higashi-
Shimbashi, Minato-ku, Tokyo,
Japan |
23,720,000 |
49.42 |
|
SCG Chemicals Co.,
Ltd. [Former : Cementthai
Chemicals Co., Ltd.] Nationality: Thai Address : 1
Siam Cement Rd.,
Bangsue, Bangkok |
23,720,000 |
49.42 |
|
SMH Co., Ltd.
Nationality: Japanese Address : 1
Siam Cement Rd.,
Bangsue, Bangkok |
560,000 |
1.16 |
Total Shareholders : 3
Share Structure [as
at April 10,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
23,720,000 |
49.42 |
|
Foreign - Japanese |
2 |
24,280,000 |
50.58 |
|
Total |
3 |
48,000,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Ms. Sureerat Thongaroonsaeng No. 4409
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2013,
2012 & 2011
were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
107,674,915 |
334,529,194 |
911,871,562 |
|
Trade Accounts & Other Receivable |
2,199,064,705 |
2,884,643,466 |
3,032,874,060 |
|
Inventories |
1,750,380,513 |
2,809,461,822 |
2,315,959,323 |
|
Revenue Department Receivable |
245,706,361 |
277,225,144 |
269,271,965 |
|
Other Current Assets
|
32,030,861 |
38,039,206 |
65,486,625 |
|
|
|
|
|
|
Total Current Assets
|
4,334,857,355 |
6,343,898,832 |
6,595,463,535 |
|
|
|
|
|
|
Fixed Assets |
8,449,522,123 |
8,513,361,970 |
8,337,498,590 |
|
Intangible Assets |
4,339,154 |
5,254,406 |
995,481 |
|
Deferred |
12,090,955 |
21,049,076 |
30,007,196 |
|
Deferred Income Tax Assets |
163,364,688 |
113,570,420 |
49,418,348 |
|
Other Non-current Assets |
11,437,878 |
13,863,005 |
16,441,717 |
|
Total Assets |
12,975,612,153 |
15,010,997,709 |
15,029,824,867 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Short-term Loan from Financial Institutions |
770,000,000 |
- |
- |
|
Trade Accounts & Other Payable |
2,994,047,973 |
5,172,162,818 |
4,058,204,360 |
|
Current Portion of Long-term
Loans |
- |
- |
129,008,095 |
|
Other Current Liabilities |
42,966,716 |
50,240,022 |
55,320,874 |
|
|
|
|
|
|
Total Current Liabilities |
3,807,014,689 |
5,222,402,840 |
4,242,533,329 |
|
|
|
|
|
|
Long-term Loan from Financial Institutions |
2,047,470,000 |
1,538,875,000 |
- |
|
Obligation for Employee
Benefits |
27,446,787 |
24,369,424 |
15,059,459 |
|
Total Liabilities |
5,881,931,476 |
6,785,647,264 |
4,257,592,788 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 48,000,000 shares |
4,800,000,000 |
4,800,000,000 |
4,800,000,000 |
|
|
|
|
|
|
Capital Paid |
4,800,000,000 |
4,800,000,000 |
4,800,000,000 |
|
Retained Earning Appropriated for Statutory
Reserve |
480,000,000 |
480,000,000 |
480,000,000 |
|
Unappropriated |
1,813,680,677 |
2,945,350,445 |
5,492,232,079 |
|
Total Shareholders' Equity |
7,093,680,677 |
8,225,350,445 |
10,772,232,079 |
|
Total Liabilities &
Shareholders' Equity |
12,975,612,153 |
15,010,997,709 |
15,029,824,867 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
30,321,058,868 |
43,177,695,930 |
55,611,008,230 |
|
Gain on Exchange Rate |
- |
205,580,447 |
181,925,838 |
|
Result of Claim under Business Interruption Insurance |
120,801,105 |
128,794,269 |
- |
|
Other Income |
42,899,915 |
69,374,502 |
73,586,215 |
|
Total Revenues |
30,484,759,888 |
43,581,445,148 |
55,866,520,283 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
30,552,170,037 |
43,457,208,759 |
51,399,753,569 |
|
Selling Expenses |
293,152,160 |
422,163,869 |
476,637,654 |
|
Administrative Expenses |
199,556,712 |
188,648,464 |
179,954,778 |
|
Loss on Exchange Rate |
30,260,136 |
- |
- |
|
Fixed Cost of Production
Full Capacity |
449,983,438 |
- |
- |
|
Damages under Contract
to Purchase Minimum
Energy |
109,202,412 |
- |
- |
|
Total Expenses |
31,634,324,895 |
44,068,021,092 |
52,056,346,001 |
|
Profit before Financial Cost & Income Tax |
[1,149,565,007] |
[486,575,944] |
3,810,174,282 |
|
Financial Cost |
[31,899,029] |
[12,457,763] |
[8,801,052] |
|
Profit before Income Tax |
[1,181,464,036] |
[499,033,707] |
3,801,373,230 |
|
Income Tax |
[49,794,268] |
[64,152,073] |
[256,975,395] |
|
Net Profit / [Loss] |
[1,131,669,768] |
[434,881,634] |
3,544,397,835 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.14 |
1.21 |
1.55 |
|
QUICK RATIO |
TIMES |
0.61 |
0.62 |
0.93 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.59 |
5.07 |
6.67 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.34 |
2.88 |
3.70 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
20.91 |
23.60 |
16.45 |
|
INVENTORY TURNOVER |
TIMES |
17.45 |
15.47 |
22.19 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
26.47 |
24.39 |
19.91 |
|
RECEIVABLES TURNOVER |
TIMES |
13.79 |
14.97 |
18.34 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
35.77 |
43.44 |
28.82 |
|
CASH CONVERSION CYCLE |
DAYS |
11.61 |
4.54 |
7.53 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
100.76 |
100.65 |
92.43 |
|
SELLING & ADMINISTRATION |
% |
1.62 |
1.41 |
1.18 |
|
INTEREST |
% |
0.11 |
0.03 |
0.02 |
|
GROSS PROFIT MARGIN |
% |
(0.22) |
0.29 |
8.03 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(3.79) |
(1.13) |
6.85 |
|
NET PROFIT MARGIN |
% |
(3.73) |
(1.01) |
6.37 |
|
RETURN ON EQUITY |
% |
(15.95) |
(5.29) |
32.90 |
|
RETURN ON ASSET |
% |
(8.72) |
(2.90) |
23.58 |
|
EARNING PER SHARE |
BAHT |
(23.58) |
(9.06) |
73.84 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.45 |
0.45 |
0.28 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.83 |
0.82 |
0.40 |
|
TIME INTEREST EARNED |
TIMES |
(36.04) |
(39.06) |
432.92 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(29.78) |
(22.36) |
|
|
OPERATING PROFIT |
% |
136.26 |
(112.77) |
|
|
NET PROFIT |
% |
(160.22) |
(112.27) |
|
|
FIXED ASSETS |
% |
(0.75) |
2.11 |
|
|
TOTAL ASSETS |
% |
(13.56) |
(0.13) |
|
ANNUAL GROWTH : RISKY
An annual sales growth is -29.78%. Turnover has decreased from THB
43,177,695,930.00 in 2012 to THB 30,321,058,868.00 in 2013. While net profit
has decreased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
(0.22) |
Deteriorated |
Industrial Average |
62.38 |
|
Net Profit Margin |
(3.73) |
Deteriorated |
Industrial Average |
6.26 |
|
Return on Assets |
(8.72) |
Deteriorated |
Industrial Average |
6.99 |
|
Return on Equity |
(15.95) |
Deteriorated |
Industrial Average |
11.35 |
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 -0.22%. 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 -3.73%.
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 -8.72%.
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 -15.95%.
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 |
1.14 |
Acceptable |
Industrial Average |
2.09 |
|
Quick Ratio |
0.61 |
|
|
|
|
Cash Conversion Cycle |
11.61 |
|
|
|
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 1.14 times in 2013, decreased from 1.21 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 0.61 times in 2013,
decreased from 0.62 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 12 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.45 |
Acceptable |
Industrial Average |
0.36 |
|
Debt to Equity Ratio |
0.83 |
Impressive |
Industrial Average |
0.56 |
|
Times Interest Earned |
(36.04) |
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 -36.04 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 0.45 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.59 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
2.34 |
Impressive |
Industrial Average |
1.12 |
|
Inventory Conversion Period |
20.91 |
|
|
|
|
Inventory Turnover |
17.45 |
Impressive |
Industrial Average |
4.66 |
|
Receivables Conversion Period |
26.47 |
|
|
|
|
Receivables Turnover |
13.79 |
Impressive |
Industrial Average |
4.83 |
|
Payables Conversion Period |
35.77 |
|
|
|
The company's Account Receivable Ratio is calculated as 13.79 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 decreased from 24 days at the
end of 2012 to 21 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 15.47 times in year 2012 to 17.45
times in year 2013.
The company's Total Asset Turnover is calculated as 2.34 times and 2.88
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 Stable
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.33 |
|
|
1 |
Rs.103.18 |
|
Euro |
1 |
Rs.81.58 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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.