MIRA INFORM REPORT
|
Report Date : |
05.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
KANGWAL SPINNING
CO., LTD. |
|
|
|
|
Registered Office : |
79/2
Moo 5, T.
Khokkham, A. Muang, Samutsakorn
74000 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
19.10.2005 |
|
|
|
|
Com. Reg. No.: |
0745548003741 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
engaged in
manufacturing and servicing of
yarn spinning with
various types of fibers using different systems and
technology. |
|
|
|
|
No of Employees : |
350 (Approximately) |
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 |
|
|
|
|
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 |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
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 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 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.
|
Source : CIA |
Company
name
KANGWAL SPINNING
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 79/2
MOO 5, T. KHOKKHAM,
A. MUANG,
SAMUTSAKORN 74000,
THAILAND
TELEPHONE : [66] 34
861-392-4
FAX :
[66] 34
861-391
E-MAIL
ADDRESS : sales@kangwal.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2005
REGISTRATION
NO. : 0745548003741
TAX
ID NO. : 3380137052
CAPITAL REGISTERED : BHT. 100,000,000
CAPITAL PAID-UP : BHT.
100,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. NIPHAN WONGPHANLERT,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 350
LINES
OF BUSINESS : YARN
SPINNING
MANUFACTURER, 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 October 19,
2005 as a
private limited company
under the registered
name KANGWAL SPINNING CO., LTD., by
Thai group, Wongphanlert
family, with the
business objective to
provide yarn spinning
service for textile
industry both in
domestic and international. It
currently employs approximately
350 staff.
The
subject is a
member of Kangwal group
of companies, the
leading textile and yarn
manufacturers in Thailand.
The
subject’s registered address
is 79/2 Moo
5, T. Khokkham,
A. Muang, Samutsakorn 74000,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Vallapa Wongphanlert |
|
Thai |
75 |
|
Mr. Niphan Wongphanlert |
|
Thai |
52 |
|
Mr. Roongruang Wongphanlert |
|
Thai |
50 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Niphan Wongphanlert is
the Managing Director.
He is Thai
nationality with the
age of 52
years old.
Mr. Roongruang Wongphanlert is
the Deputy Managing
Director.
He is Thai
nationality with the
age of 50
years old.
Mr. Vithaya Dilokratampon is
the Accounting Manager.
He is Thai
nationality.
BUSINESS
OPERATIONS
The subject
is engaged in
manufacturing and servicing
of yarn spinning with various types of fibers using different systems and technology.
PRODUCTION CAPACITY
2,000,000 yards
per month
PURCHASE
Raw
materials are purchased
from suppliers both
domestic and overseas,
mainly in Republic
of China, India and
Taiwan.
SALES/SERVICES
The products are
sold and serviced
to customers both
local and overseas, in
U.S.A., Republic of
China, Japan, India,
Singapore, Hong Kong
and the countries
in Europe.
MAJOR CUSTOMER
KC Tex Inc. : U.S.A.
RELATED AND AFFILIATED
COMPANIES
Kangwal Group of
companies, consists of:
Kangwal Textile Co.,
Ltd.
Business Type :
Yarn spinning factory
Kangwal Polyester Co.,
Ltd.
Business Type :
Manufacturer of polyester
fibers
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.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
The
banker’s name was
not disclosed.
EMPLOYMENT
The
subject currently employs
approximately 350 staff.
LOCATION
DETAILS
The
premise is owned for
administrative office and
factory at the
heading address. Premise
is located in
provincial.
Bangkok
office is located
at 1426/18-20 Soi
Yosse, Krungkasem Road,
Wadthepsitin,
Pomprabsattrupai, Bangkok
10100. Tel.: [66]
2220-7000 Fax: [66]
2226-3046, 2224-3388
COMMENT
The
subject is a
manufacturer of yarn spinning.
The machinery used
in spinning is from world
leading manufacturers of textile
machinery. Its plant
is operating at
high efficiency, and quality of
products is comparable
to top class
plants in world
markets. This has enabled
the subject a
commitment to the
concept of absolute
consistency in quality.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 1,000,000 divided into 10,000
shares of Bht. 100
each with fully
paid.
On
February 16, 2006,
the registered capital
was increased to
Bht. 100,000,000 divided
into 1,000,000 shares
of Bht. 100 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Vallapa Wongphanlert Nationality: Thai Address : 678/16 Bamrungmuang Road,
Wadthepsirin,
Pomprabsattrupai, Bangkok |
192,300 |
19.23 |
|
Mr. Niphan Wongphanlert Nationality: Thai Address : 678/16
Bamrungmuang Road,
Wadthepsirin, Pomprabsattrupai,
Bangkok |
192,300 |
19.23 |
|
Mr. Roonruang Wongphanlert Nationality: Thai Address : 678/16
Bamrungmuang Road,
Wadthepsirin,
Pomprabsattrupai, Bangkok |
192,300 |
19.23 |
|
Mr. Bancha Wongphanlert Nationality: Thai Address : 678/16
Bamrungmuang Road,
Wadthepsirin,
Pomprabsattrupai, Bangkok |
153,850 |
15.385 |
|
Ms. Nualphan Wongphanlert Nationality: Thai Address : 678/16
Bamrungmuang Road,
Wadthepsirin,
Pomprabsattrupai, Bangkok |
89,750 |
8.975 |
|
Ms. Panida Wongphanlert Nationality: Thai Address : 678/16
Bamrungmuang Road,
Wadthepsirin,
Pomprabsattrupai, Bangkok |
89,750 |
8.975 |
|
Ms. Vorawan Wongphanlert Nationality: Thai Address : 678/16
Bamrungmuang Road,
Wadthepsirin,
Pomprabsattrupai, Bangkok |
89,750 |
8.975 |
Total Shareholders : 7
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
1,000,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
1,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Cherdchay Tortrakul No.
0468
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 |
8,052,952.91 |
4,870,265.68 |
7,053,181.32 |
|
Trade Accounts & Other Receivable |
95,447,656.45 |
104,437,266.30 |
84,458,743.29 |
|
Inventories |
299,074,831.10 |
236,954,149.62 |
117,713,477.42 |
|
Other Current Assets
|
38,076,407.90 |
74,311,541.16 |
40,472,944.19 |
|
|
|
|
|
|
Total Current Assets
|
440,651,848.36 |
420,573,222.76 |
249,698,346.22 |
|
|
|
|
|
|
Fixed Assets |
288,744,180.69 |
319,513,087.83 |
324,090,567.50 |
|
Total Assets |
729,396,029.05 |
740,086,310.59 |
573,788,913.72 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institutions |
184,953,442.77 |
185,854,583.35 |
82,237,998.65 |
|
Trade Accounts & Other Payable |
176,371,328.44 |
149,672,630.69 |
152,813,778.65 |
|
Current Portion of Long-term
Liabilities |
- |
8,480,000.00 |
13,440,000.00 |
|
Short-term Loans |
309,400,000.00 |
291,630,000.00 |
218,030,000.00 |
|
Accrued Income Tax |
- |
788,021.54 |
- |
|
Other Current Liabilities |
224,062.88 |
247,549.83 |
225,786.82 |
|
|
|
|
|
|
Total Current Liabilities |
670,948,834.09 |
636,672,785.41 |
466,747,564.12 |
|
|
|
|
|
|
Long-term Loans |
- |
- |
8,480,000.00 |
|
Obligation for Employee
Benefits |
1,896,010.93 |
1,448,746.90 |
- |
|
Total Liabilities |
672,844,845.02 |
638,121,532.31 |
475,227,564.12 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,000,000 shares |
100,000,000.00 |
100,000,000.00 |
100,000,000.00 |
|
|
|
|
|
|
Capital Paid |
100,000,000.00 |
100,000,000.00 |
100,000,000.00 |
|
Retained Earning -
Unappropriated |
[43,448,815.97] |
1,964,778.28 |
[1,438,650.40] |
|
Total Shareholders' Equity |
56,551,184.03 |
101,964,778.28 |
98,561,349.60 |
|
Total Liabilities &
Shareholders' Equity |
729,396,029.05 |
740,086,310.59 |
573,788,913.72 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
1,118,891,514.31 |
1,179,331,979.51 |
944,474,612.92 |
|
Other Income |
3,578,019.45 |
7,570,533.83 |
5,903,450.39 |
|
Total Revenues |
1,122,469,533.76 |
1,186,902,513.34 |
950,378,063.31 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,081,353,283.07 |
1,096,152,327.68 |
862,838,327.38 |
|
Selling Expenses |
34,249,620.96 |
34,566,858.30 |
38,723,684.08 |
|
Administrative Expenses |
46,518,683.28 |
45,509,459.14 |
39,256,121.60 |
|
Other Expenses |
35,452.41 |
234,150.08 |
- |
|
Total Expenses |
1,162,157,039.72 |
1,176,462,795.20 |
940,818,133.06 |
|
Profit /[Loss] before Financial
Cost & Income Tax |
[39,687,505.96] |
10,439,718.14 |
9,559,930.25 |
|
Financial Cost |
[5,726,088.29] |
[5,531,961.31] |
[3,612,605.07] |
|
Profit /[Loss] before Income
Tax |
[45,413,594.25] |
4,907,756.83 |
5,947,325.18 |
|
Income Tax |
- |
[1,504,328.15] |
- |
|
Net Profit / [Loss] |
[45,413,594.25] |
3,403,428.68 |
5,947,325.18 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.66 |
0.66 |
0.53 |
|
QUICK RATIO |
TIMES |
0.15 |
0.17 |
0.20 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.88 |
3.69 |
2.91 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.53 |
1.59 |
1.65 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
100.95 |
78.90 |
49.80 |
|
INVENTORY TURNOVER |
TIMES |
3.62 |
4.63 |
7.33 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
31.14 |
32.32 |
32.64 |
|
RECEIVABLES TURNOVER |
TIMES |
11.72 |
11.29 |
11.18 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
59.53 |
49.84 |
64.64 |
|
CASH CONVERSION CYCLE |
DAYS |
72.55 |
61.39 |
17.79 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
96.65 |
92.95 |
91.36 |
|
SELLING & ADMINISTRATION |
% |
7.22 |
6.79 |
8.26 |
|
INTEREST |
% |
0.51 |
0.47 |
0.38 |
|
GROSS PROFIT MARGIN |
% |
3.67 |
7.70 |
9.27 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(3.55) |
0.89 |
1.01 |
|
NET PROFIT MARGIN |
% |
(4.06) |
0.29 |
0.63 |
|
RETURN ON EQUITY |
% |
(80.31) |
3.34 |
6.03 |
|
RETURN ON ASSET |
% |
(6.23) |
0.46 |
1.04 |
|
EARNING PER SHARE |
BAHT |
(45.41) |
3.40 |
5.95 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.92 |
0.86 |
0.83 |
|
DEBT TO EQUITY RATIO |
TIMES |
11.90 |
6.26 |
4.82 |
|
TIME INTEREST EARNED |
TIMES |
(6.93) |
1.89 |
2.65 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(5.12) |
24.87 |
|
|
OPERATING PROFIT |
% |
(480.16) |
9.20 |
|
|
NET PROFIT |
% |
(1,434.35) |
(42.77) |
|
|
FIXED ASSETS |
% |
(9.63) |
(1.41) |
|
|
TOTAL ASSETS |
% |
(1.44) |
28.98 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -5.12%. Turnover has decreased from THB
1,179,331,979.51 in 2011 to THB 1,118,891,514.31 in 2012. While net profit has
decreased from THB 3,403,428.68 in 2011 to THB -45,413,594.25 in 2012. And
total assets has decreased from THB 740,086,310.59 in 2011 to THB
729,396,029.05 in 2012.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
3.67 |
Deteriorated |
Industrial Average |
13.64 |
|
Net Profit Margin |
(4.06) |
Deteriorated |
Industrial Average |
(0.38) |
|
Return on Assets |
(6.23) |
Deteriorated |
Industrial Average |
(0.40) |
|
Return on Equity |
(80.31) |
Deteriorated |
Industrial Average |
(0.91) |
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 3.67%. 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 -4.06%.
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 -6.23%.
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 -80.31%.
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 |
0.66 |
Risky |
Industrial Average |
1.39 |
|
Quick Ratio |
0.15 |
|
|
|
|
Cash Conversion Cycle |
72.55 |
|
|
|
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 0.66 times in 2012, same figure as
0.66 time in 2011, then the company may not be efficiently
using its current assets. 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 0.15 times in 2012, decreased
from 0.17 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 73 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.92 |
Acceptable |
Industrial Average |
0.55 |
|
Debt to Equity Ratio |
11.90 |
Risky |
Industrial Average |
1.23 |
|
Times Interest Earned |
(6.93) |
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 higher the percentage means that the company is using less equity
and has stronger leverage position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is -6.94 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 0.92 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 Uptrend
Times Interest Earned Stable
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.88 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.53 |
Impressive |
Industrial Average |
1.06 |
|
Inventory Conversion Period |
100.95 |
|
|
|
|
Inventory Turnover |
3.62 |
Impressive |
Industrial Average |
2.70 |
|
Receivables Conversion Period |
31.14 |
|
|
|
|
Receivables Turnover |
11.72 |
Impressive |
Industrial Average |
4.53 |
|
Payables Conversion Period |
59.53 |
|
|
|
The company's Account Receivable Ratio is calculated as 11.72 and 11.29
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.
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 79 days at the end of 2011 to
101 days at the end of 2012. This represents a negative trend. And Inventory
turnover has decreased from 4.63 times in year 2011 to 3.62 times in year 2012.
The company's Total Asset Turnover is calculated as 1.53 times and 1.59
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.59.34 |
|
UK Pound |
1 |
Rs.99.18 |
|
Euro |
1 |
Rs.80.76 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.