MIRA INFORM REPORT
|
Report Date : |
27.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
KLOECKNER PENTAPLAST [THAILAND] LIMITED |
|
|
|
|
Registered Office : |
64/48 Moo 4, Eastern Seaboard Industrial Estate, Pluakdaeng, Rayong 21140 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
30.09.2013 |
|
|
|
|
Date of Incorporation : |
2001 |
|
|
|
|
Com. Reg. No.: |
0105544028493 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Exporter and Distributor
of Plastic Film |
|
|
|
|
No. of Employees : |
200 |
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 – 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 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately 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 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
KLOECKNER
PENTAPLAST [THAILAND] LIMITED
SUMMARY
BUSINESS ADDRESS : 64/48 MOO 4, EASTERN SEABOARD INDUSTRIAL ESTATE,
PLUAKDAENG, RAYONG
21140, THAILAND
TELEPHONE : [66] 38
927-400
FAX : [66] 38
955-462
E-MAIL ADDRESS : kpasia.salesupport@kpfilms.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2001
REGISTRATION NO. : 0105544028493
TAX ID
NO. : 3030250599
CAPITAL REGISTERED : BHT.
830,000,000
CAPITAL PAID-UP : BHT.
830,000,000
SHAREHOLDER’S PROPORTION : FOREIGN :
100%
FISCAL YEAR CLOSING DATE : SEPTEMBER 30
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. MARC PHILIPP
SETZEN, GERMAN
MANAGING DIRECTOR
NO. OF STAFF : 200
LINES OF BUSINESS : PLASTIC FILM MANAFACTURER, EXPORTER
AND DISTRIBUTOR
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH LOW PERFORMANCE
HISTORY
The subject was
established on March
21, 2001 as
a private limited
company under the name style KLOECKNER PENTAPLAST [THAILAND]
LIMITED, by Dutch
groups, in order
to manufacture hard
plastic film mainly
for exports. Its
production facilities are
located in Rayong
province. It currently
employs approximately 200 staff.
The subject is
a wholly owned
subsidiary of Kloeckner
Pentaplast Nethelands B.V.,
the Dutch company.
It is the only global manufacturer to offer overlay
film.
It was granted
a promotional privilege
from Thailand’s Board
of Investment [BOI] for
the production.
The subject’s registered
address was initially
located at 15th Floor,
Lake Ratchada Office
Complex, 193/59 Ratchadapisek
Rd., Klongtoey, Bangkok 10110.
In 2009, the registered address
was relocated to
64/48 Moo 4, Eastern Seaboard
Industrial Estate, Pluakdaeng,
Rayong 21140, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Markus Karl Josef
Hoelzl |
|
German |
56 |
|
Mr. Kumpol Nateethanasarn |
|
Thai |
46 |
|
Mr. Marc Philipp Setzen |
|
German |
45 |
|
Mr. Soros Yodmongkol |
|
Thai |
- |
|
Dr. Karl Robert Rainer
Rothermel |
|
German |
53 |
|
Ms. Rao Ying |
|
Chinese |
40 |
|
Mr. Stefan Brandt |
|
German |
45 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Marc Philipp Setzen
is the Managing
Director.
He is German
nationality with the
age of 45
years old.
Mr. Kumpol Nateethanasarn is
the G.M. & Sales &
Marketing Director.
He is Thai
nationality with the
age of 46
years old.
Mr. Nititep Wongmuneepitak is
the Finance Manager.
He is Thai
nationality.
Mr. Soros Yodmongkol is
the Factory Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is engaged
in manufacturing and
exporting various kinds of
hard plastic films
including PVC film, PET film, PVC shrinkage and
PVC coated film, used
in foods, consumer
goods, printing and
packaging, electronics industries
and etc.
BRAND NAME
“KP”
PRODUCTIONS
PVC film :
23,000 tons/year
PET film :
15,000 tons/year
PVC coated film : 6,700
tons/year
PVC shrinkage : 7,500
tons/year
PURCHASE
70% of raw
materials mainly resin
and chemical are
purchased from local
suppliers,
the remaining 30%
are imported from
Japan, Taiwan, Singapore,
India and
Republic of China.
MAJOR SUPPLIER
IRPC Public Company
Limited : Thailand
EXPORT
85% of the products
is exported to
over 100 customers
mainly in Asian
such as Japan, Republic of China, Singapore, Malaysia,
Taiwan, India, Laos,
Philippines, Vietnam, Cambodia,
Myanmar, Indonesia, Netherlands,
Bangladesh, Brunei, U.S.A.,
and etc.
SALES [LOCAL]
15% of the
products is also
sold locally to
manufacturers.
MAJOR CUSTOMERS
Cloeren Incorporated : U.S.A.
Kris Flexipacks Pvt.
Ltd. : India
P.T. Indohoverta : Indonesia
Glaxo Smith Kline
Pty. Ltd. : Australia
PARENT COMPANY
Kloeckner Pentaplast Netherlands
B.V. : Netherlands
It is the leading producer of plastic films for packaging, printing and specialty applications.
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.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credit term of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office :
333 Silom Rd.,
Silom, Bangrak, Bangkok]
Kasikornbank Public Co.,
Ltd.
[Head Office :
1 Kasikorn Lane,
Rajburana Rd., Rajburana,
Bangkok]
EMPLOYMENT
The subject employs
approximately 200 staff.
LOCATION DETAILS
The premise is
rented for administrative office,
factory and warehouse
at the heading
address. Premise is
located in industrial
area.
Sales Office:
15th Floor, Lake
Ratchada Office Complex,
193/59 Ratchadapisek Rd.,
Klongtoey, Bangkok 10110.
Tel.: [66] 2264-0450,
2264-0105 Fax: [66]
2264-0451
COMMENT
The subject is
the leading manufacture
of outlay film.
The subject is well positioned
with a broad product and market portfolio within its
key international markets.
FINANCIAL INFORMATION
The capital was
registered at Bht.
2,100,000 divided into
21,000 shares of
Bht. 100 each.
The capital was
increased later as
following:
Bht. 150,000,000 on
August 15, 2001
Bht. 250,000,000 on
November 6, 2003
Bht. 430,000,000 on
August 7, 2006
Bht. 630,000,000 on
March 28, 2011
Bht. 780,000,000 on
October 7, 2011
Bht. 830,000,000 on
July 15, 2013
The latest registered
capital was increased
to Bht. 830,000,000 divided
into 8,300,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE
[as at January
23, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Kloeckner Pentaplast Netherlands
B.V. Nationality: Dutch Address : Netherlands |
8,299,800 |
100.00 |
|
Kloeckner Pentaplast of
America Nationality: American Address : Virginia,
U.S.A. |
100 |
- |
|
KP Investments Holdings
LLC. Nationality: American Address : Virginia,
U.S.A. |
100 |
- |
Total Shareholders : 3
Share Structure [as
at January 23,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
3 |
8,300,000 |
100.00 |
|
Total |
3 |
8,300,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mr. Boonsri Techavarutama No.
3336
BALANCE SHEET
[BAHT]
The latest financial
figures published for
September 30, 2013,
2012 & 2011
were:
ASSETS
[Unit
: Thousand Baht]
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash in hand
& at Bank
|
13,109 |
47,562 |
147,149 |
|
Trade Accounts & Other
Receivable |
261,996 |
263,196 |
182,843 |
|
Trade Accounts & Other
Receivable - Person
or Related Company |
33,602 |
65,258 |
120,809 |
|
Inventories |
165,186 |
174,165 |
184,472 |
|
Other Current Assets |
- |
- |
28,079 |
|
|
|
|
|
|
Total Current Assets
|
473,893 |
550,181 |
663,352 |
|
Fixed Assets |
1,076,394 |
1,234,822 |
1,395,585 |
|
Intangible Assets |
10,959 |
- |
- |
|
Deferred Income Tax
Assets |
24,306 |
24,306 |
34,271 |
|
Deposit |
1,858 |
2,414 |
1,075 |
|
Total Assets |
1,587,410 |
1,811,723 |
2,094,283 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
[Unit
: Thousand Baht]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institution |
183,050 |
221,745 |
153,934 |
|
Trade Accounts and
Other Payable |
208,868 |
231,127 |
147,995 |
|
Trade Accounts Payable - Related Company |
225,504 |
242,387 |
225,155 |
|
Current Portion of Long-term
Loan from Person
or Related Company |
100,000 |
200,000 |
200,000 |
|
Short-term Loan from Person
or Related Company |
53,332 |
- |
- |
|
Pre-received Shares from Person or Related Company |
- |
- |
153,300 |
|
Construction Payable |
- |
- |
12,330 |
|
Accrued Expenses |
- |
- |
42,565 |
|
Other Current Liabilities |
- |
- |
21,563 |
|
|
|
|
|
|
Total Current Liabilities |
770,754 |
895,259 |
956,842 |
|
Long-term Loan from
Person or Related
Company |
175,000 |
250,000 |
450,000 |
|
Employee Benefit Obligation |
860 |
688 |
- |
|
Total Liabilities |
946,614 |
1,145,947 |
1,406,842 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid
share capital 8,300,000 shares
in 2013 7,800,000 shares
in 2012 6,300,000 shares
in 2011 |
830,000 |
780,000 |
630,000 |
|
|
|
|
|
|
Capital Paid |
830,000 |
780,000 |
630,000 |
|
Unrealized Gain [ Loss] Surplus on
Assets Appraisal |
- |
- |
62,489 |
|
Retained Earning -
Unappropriated [Deficit] |
[189,204] |
[114,224] |
[5,048] |
|
Total Shareholders' Equity
[Deficit] |
640,796 |
665,776 |
687,441 |
|
Total Liabilities & Shareholders' Equity |
1,587,410 |
1,811,723 |
2,094,283 |
PROFIT &
LOSS ACCOUNT
[Unit
: Thousand Baht]
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
1,585,178 |
1,656,624 |
1,328,522 |
|
Other Income |
14,379 |
19,906 |
14,910 |
|
Total Revenues |
1,599,557 |
1,676,530 |
1,343,432 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,403,166 |
1,481,501 |
1,216,440 |
|
Selling Expenses |
148,718 |
159,662 |
115,518 |
|
Administrative Expenses |
91,046 |
98,003 |
82,064 |
|
Total Expenses |
1,642,930 |
1,739,166 |
1,414,022 |
|
|
|
|
|
|
Profit / [Loss] before
Financial Costs & Income Tax |
[43,373] |
[62,636] |
[70,590] |
|
Financial Costs |
[31,607] |
[36,574] |
[27,424] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax |
[74,980] |
[99,210] |
[98,014] |
|
Income Tax |
- |
[9,966] |
[918] |
|
Net Profit / [Loss] |
[74,980] |
[109,176] |
[98,932] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.61 |
0.61 |
0.69 |
|
QUICK RATIO |
TIMES |
0.40 |
0.42 |
0.47 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.47 |
1.34 |
0.95 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.00 |
0.91 |
0.63 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
42.97 |
42.91 |
55.35 |
|
INVENTORY TURNOVER |
TIMES |
8.49 |
8.51 |
6.59 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
60.33 |
57.99 |
50.23 |
|
RECEIVABLES TURNOVER |
TIMES |
6.05 |
6.29 |
7.27 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
54.33 |
56.94 |
44.41 |
|
CASH CONVERSION CYCLE |
DAYS |
48.96 |
43.96 |
61.18 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
88.52 |
89.43 |
91.56 |
|
SELLING & ADMINISTRATION |
% |
15.13 |
15.55 |
14.87 |
|
INTEREST |
% |
1.99 |
2.21 |
2.06 |
|
GROSS PROFIT MARGIN |
% |
12.39 |
11.77 |
9.56 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(2.74) |
(3.78) |
(5.31) |
|
NET PROFIT MARGIN |
% |
(4.73) |
(6.59) |
(7.45) |
|
RETURN ON EQUITY |
% |
(11.70) |
(16.40) |
(14.39) |
|
RETURN ON ASSET |
% |
(4.72) |
(6.03) |
(4.72) |
|
EARNING PER SHARE |
BAHT |
(9.03) |
(14.00) |
(15.70) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.60 |
0.63 |
0.67 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.48 |
1.72 |
2.05 |
|
TIME INTEREST EARNED |
TIMES |
(1.37) |
(1.71) |
(2.57) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(4.31) |
24.70 |
|
|
OPERATING PROFIT |
% |
(30.75) |
(11.27) |
|
|
NET PROFIT |
% |
31.32 |
(10.35) |
|
|
FIXED ASSETS |
% |
(12.83) |
(11.52) |
|
|
TOTAL ASSETS |
% |
(12.38) |
(13.49) |
|
ANNUAL
GROWTH : RISKY
An annual sales growth is -4.31%. Turnover has decreased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
12.39 |
Acceptable |
Industrial Average |
21.24 |
|
Net Profit Margin |
(4.73) |
Deteriorated |
Industrial Average |
5.71 |
|
Return on Assets |
(4.72) |
Deteriorated |
Industrial Average |
6.91 |
|
Return on Equity |
(11.70) |
Deteriorated |
Industrial Average |
14.27 |
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 12.39%. 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 -4.73%.
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 -4.72%.
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 -11.7%.
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 |
0.61 |
Risky |
Industrial Average |
1.47 |
|
Quick Ratio |
0.40 |
|
|
|
|
Cash Conversion Cycle |
48.96 |
|
|
|
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 0.61 times in 2013, as same
figure as 0.61 times, 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 0.4 times in 2013,
decreased from 0.42 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 49 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.60 |
Impressive |
Industrial Average |
0.66 |
|
Debt to Equity Ratio |
1.48 |
Risky |
Industrial Average |
1.36 |
|
Times Interest Earned |
(1.37) |
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 -1.38 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 0.6 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
1.47 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.00 |
Acceptable |
Industrial Average |
1.57 |
|
Inventory Conversion Period |
42.97 |
|
|
|
|
Inventory Turnover |
8.49 |
Impressive |
Industrial Average |
7.28 |
|
Receivables Conversion Period |
60.33 |
|
|
|
|
Receivables Turnover |
6.05 |
Impressive |
Industrial Average |
3.05 |
|
Payables Conversion Period |
54.33 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.05 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 is
43 days at the end of 2012,
same number of
days as in 2013. This represents a negative trend.
And Inventory turnover has decreased from 8.51 times in year 2012 to 8.49 times
in year 2013.
The company's Total Asset Turnover is calculated as 1 time and 0.91
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.60.16 |
|
|
1 |
Rs.102.23 |
|
Euro |
1 |
Rs.82.04 |
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.