MIRA INFORM REPORT
|
Report Date : |
30.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
THAI ETHOXYLATE COMPANY LIMITED |
|
|
|
|
Registered Office : |
15th Floor, Energy Complex Building A, 555/1 Vibhavadee Rangsit Road, Chatuchak, Bangkok 10900 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
2005 |
|
|
|
|
Com. Reg. No.: |
0105548034668 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor and
Exporter of Fatty Alcohol Ethoxylate |
|
|
|
|
No. of Employees : |
43 |
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 – 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
THAI ETHOXYLATE
COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 15th
FLOOR, ENERGY COMPLEX
BUILDING A,
555/1
VIBHAVADEE RANGSIT ROAD,
CHATUCHAK,
BANGKOK 10900, THAILAND
TELEPHONE : [66] 2265-8100
FAX : [66] 2265-8125
E-MAIL ADDRESS : marketing@tex.co.th
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2005
REGISTRATION NO. : 0105548034668
TAX ID NO. : 3031733800
CAPITAL REGISTERED : BHT.
420,000,000
CAPITAL PAID-UP : BHT.
420,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. VITHAYA PINMUANGNGAM,
THAI
MANAGING DIRECTOR
NO. OF STAFF : 43
LINES OF BUSINESS : FATTY
ALCOHOL ETHOXYLATE
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH GOOD PERFORMANCE
HISTORY
The subject was
established on March
10, 2005 as a
private limited company
under the name style THAI ETHOXYLATE
COMPANY LIMITED, initially
by a joint
venture between PTT Public
Company Limited and
Cognis Thai Limited. The subject
is the first
company to manufacture
and market fatty alcohol ethoxylate
to both domestic
and international markets.
In 2011, the
subject has become
a joint venture
between PTT Global
Chemical Public Company
Limited, which is
a subsidiary of PTT
Public Company Limited,
and BASF [Thai]
Ltd., a member
of BASF SE,
in Germany. It currently
employs 43 staff.
The subject’s registered
address was initially
at 123 Sun
Tower Building A,
Vibhavadee Rangsit Rd., Chomphon,
Chatuchak, Bangkok 10900.
On March 22,
2010, its registered
address was relocated
to 15th Floor,
Energy Complex Building A,
555/1 Vibhavadee Rangsit
Road, Chatuchak, Bangkok
10900, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Chokechai Aksornand |
|
Thai |
72 |
|
Mr. Sermsak Sriyaphai |
[x] |
Thai |
58 |
|
Mr. Vithaya Pinmuangngam |
[x] |
Thai |
52 |
|
Mr. Boonchai Opas-iam-likit |
[-] |
Thai |
50 |
|
Mr. Heiko Arnold |
[-] |
German |
48 |
|
Mr. Gopalan Pillay |
[-] |
South African |
46 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
and [-] can
jointly sign on
behalf of the
subject
with company’s affixed.
MANAGEMENT
Mr. Vithaya Pinmuangngam is
the Managing Director.
He is Thai
nationality with the
age of 52
years old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
and marketing of
fatty alcohol ethoxylate,
made from ethylene
oxide and fatty
alcohol, which is
a key ingredient
in manufacturing various
personal hygiene products,
such as shampoo, shower
cream, detergent, liquid
dish washing and
cleansing agent. The
products are sold
under the trade
name “DEHYDOL LS. TH.”
Its production technology
is supported by
Cognis, Germany.
PURCHASE
Raw materials are purchased from
suppliers in both domestic and overseas, mainly
Germany, Japan and
Malaysia.
MAJOR SUPPLIERS
PTT Global Chemical
Public Company Limited : Thailand
BASF [Thai] Ltd. : Thailand
Cognis Thai Ltd. : Thailand
SALES
80% of the
products is sold
locally by wholesale
to manufacturers, the
remaining 20% is
exported to Germany,
Republic of China,
Hong Kong, India, Malaysia,
Indonesia, Vietnam, Spain
and Italy.
MAJOR CUSTOMERS
Unilever Group : Thailand
Saha Pathanapibul Public
Company Limited :
Thailand
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
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject currently
employs 43 staff.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in commercial/residential area .
Factory and warehouse are located
at 11 Soi G 12, Eastern Industrial
Estate, Pakornsongkroa Rd.,
Map Ta Phut, Muang, Rayong
21150.
Tel.: [66] 38 925-353, Fax. : [66] 38 687-860.
COMMENT
Subject was formed
in 2005 as a manufacturing and
marketing of fatty alcohol
ethoxylate, made from
ethylene oxide and
fatty alcohol. Its
products are raw materials for
production of liquid
detergent, shampoo, shower
crème and etc.
Despite overall economic
slowdown as well
as industrial expansion
and investment remain
stagnant, subject still maintain
a solid business.
FINANCIAL INFORMATION
The capital was
registered at Bht. 420,000,000 divided
into 4,200,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE
[as at April
2, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
BASF [Thai] Ltd. Nationality: Thai Address : 622
Sukhumvit 24 Road,
Klongton,
Klongtoey, Bangkok |
2,099,998 |
50.00 |
|
PTT Global Chemical
Public Company Limited Nationality: Thai Address : 555/1
Energy Complex Building A,
Vibhavadee Rangsit Road,
Chatuchak, Bangkok |
2,099,997 |
50.00 |
|
Mr. Atthawuth Hiranburana Nationality: Thai Address : 201/69
Moo 1, Pimolrach
Rd., Bangbuathong, Nonthaburi |
1 |
- |
|
Mr. Kongkraphan Intarachaeng Nationality: Thai Address : 38/17
New Petchburi Rd.,
Bangkapi,
Huaykwang, Bangkok |
1 |
- |
|
Mr. Vithaya Pinmuangngam Nationality: Thai Address : 46/146
Moo 4, Ramindra
31 Rd.,
Anusawaree, Bangkhen, Bangkok |
1 |
- |
|
Cognis International Co.,
Ltd. Nationality: German Address : Germany |
1 |
- |
|
Cognis Trust Management
AG. Nationality: German Address : Germany |
1 |
- |
Total Shareholders : 7
Share Structure [as
at April 2,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
4,199,998 |
100.00 |
|
Foreign - German |
2 |
2 |
- |
|
Total |
7 |
4,200,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mr. Wairoj Chindamaneepitak No.
3565
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 |
561,188,962 |
635,310,090 |
443,837,959 |
|
Trade Accounts Receivable |
542,365,471 |
484,193,634 |
626,838,543 |
|
Other Receivable |
6,323,363 |
4,984,032 |
134,618,990 |
|
Inventories |
67,277,189 |
125,264,619 |
163,921,564 |
|
Value Added Tax |
216,529,944 |
191,360,301 |
509,263 |
|
Other Current Assets
|
7,217,735 |
14,319,843 |
30,823,544 |
|
|
|
|
|
|
Total Current Assets
|
1,400,902,664 |
1,455,432,519 |
1,400,549,863 |
|
|
|
|
|
|
Fixed Assets |
382,296,191 |
402,876,277 |
413,405,468 |
|
Intangible Assets |
19,409,458 |
22,930,823 |
26,428,189 |
|
Deferred Income Tax |
459,762 |
364,298 |
5,458,270 |
|
Other Non-current Assets |
67,450 |
67,450 |
65,950 |
|
Total Assets |
1,803,135,525 |
1,881,671,367 |
1,845,907,740 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts Payable |
363,129,257 |
406,177,466 |
505,042,044 |
|
& Other Payable |
63,273,594 |
64,798,295 |
27,326,668 |
|
Current Portion of Financial
Lease Contract Liabilities |
2,645,405 |
1,370,681 |
2,147,801 |
|
Derivatives |
3,806,602 |
22,854 |
- |
|
Other Current Liabilities |
1,550,116 |
1,266,890 |
44,000,867 |
|
|
|
|
|
|
Total Current Liabilities |
434,404,974 |
473,636,186 |
578,517,380 |
|
|
|
|
|
|
Financial Lease Liabilities,
net |
1,176,454 |
4,528,320 |
6,650,426 |
|
Obligation for Employee
Benefits |
2,298,809 |
1,821,491 |
1,410,609 |
|
Total Liabilities |
437,880,237 |
479,985,997 |
586,578,415 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 4,200,000 shares |
420,000,000 |
420,000,000 |
420,000,000 |
|
|
|
|
|
|
Capital Paid |
420,000,000 |
420,000,000 |
420,000,000 |
|
Retained Earning Appropriated for Statutory Reserve
|
42,000,000 |
39,518,010 |
26,030,876 |
|
Unappropriated |
903,255,288 |
942,167,360 |
813,298,449 |
|
Total Shareholders' Equity |
1,365,255,288 |
1,401,685,370 |
1,259,329,325 |
|
Total Liabilities &
Shareholders' Equity |
1,803,135,525 |
1,881,671,367 |
1,845,907,740 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
2,840,367,762 |
3,320,835,520 |
3,747,310,085 |
|
Interest Income |
4,503,604 |
4,134,235 |
3,360,936 |
|
Gain on Derivatives |
- |
810,760 |
3,711,985 |
|
Gain on Exchange Rate |
6,144,113 |
7,772,195 |
923,743 |
|
Other Income |
898,734 |
384,749 |
1,679,404 |
|
Total Revenues |
2,851,914,213 |
3,333,937,459 |
3,756,986,153 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,483,418,418 |
2,909,789,371 |
3,350,799,576 |
|
Selling Expenses |
74,414,907 |
89,025,194 |
73,289,721 |
|
Administrative Expenses |
58,168,017 |
57,857,717 |
53,423,851 |
|
Loss on Derivatives |
3,783,749 |
1,342,877 |
2,450,959 |
|
Financial Cost |
1,909,149 |
2,028,265 |
4,801,441 |
|
Total Expenses |
2,621,694,240 |
3,060,043,424 |
3,484,765,548 |
|
Profit before Income Tax |
230,219,973 |
273,894,035 |
272,220,605 |
|
Income Tax |
[1,000,055] |
[5,537,990] |
[2,477,940] |
|
Net Profit / [Loss] |
229,219,918 |
268,356,045 |
269,742,665 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
3.22 |
3.07 |
2.42 |
|
QUICK RATIO |
TIMES |
2.55 |
2.37 |
2.08 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.43 |
8.24 |
9.06 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.58 |
1.76 |
2.03 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
9.89 |
15.71 |
17.86 |
|
INVENTORY TURNOVER |
TIMES |
36.91 |
23.23 |
20.44 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
69.70 |
53.22 |
61.06 |
|
RECEIVABLES TURNOVER |
TIMES |
5.24 |
6.86 |
5.98 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
53.37 |
50.95 |
55.01 |
|
CASH CONVERSION CYCLE |
DAYS |
26.21 |
17.98 |
23.90 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
87.43 |
87.62 |
89.42 |
|
SELLING & ADMINISTRATION |
% |
4.67 |
4.42 |
3.38 |
|
INTEREST |
% |
0.07 |
0.06 |
0.13 |
|
GROSS PROFIT MARGIN |
% |
12.97 |
12.77 |
10.84 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
8.11 |
8.25 |
7.26 |
|
NET PROFIT MARGIN |
% |
8.07 |
8.08 |
7.20 |
|
RETURN ON EQUITY |
% |
16.79 |
19.15 |
21.42 |
|
RETURN ON ASSET |
% |
12.71 |
14.26 |
14.61 |
|
EARNING PER SHARE |
BAHT |
54.58 |
63.89 |
64.22 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.24 |
0.26 |
0.32 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.32 |
0.34 |
0.47 |
|
TIME INTEREST EARNED |
TIMES |
120.59 |
135.04 |
56.70 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(14.47) |
(11.38) |
|
|
OPERATING PROFIT |
% |
(15.95) |
0.61 |
|
|
NET PROFIT |
% |
(14.58) |
(0.51) |
|
|
FIXED ASSETS |
% |
(5.11) |
(2.55) |
|
|
TOTAL ASSETS |
% |
(4.17) |
1.94 |
|
ANNUAL
GROWTH : RISKY
An annual sales growth is -14.47%. Turnover has decreased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
12.97 |
Deteriorated |
Industrial Average |
52.22 |
|
Net Profit Margin |
8.07 |
Impressive |
Industrial Average |
4.90 |
|
Return on Assets |
12.71 |
Impressive |
Industrial Average |
4.28 |
|
Return on Equity |
16.79 |
Impressive |
Industrial Average |
7.28 |
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 12.97%. 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 8.07%, higher figure when compared with those
of its average competitors in the same industry, indicated that business was an
efficient operator in a dominant
position within its industry.
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. Return on Assets is 12.71%, higher figure when compared with
those of its average competitors in the same industry, indicated that business
was an efficient profit in a dominant
position within its industry.
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. Return on Equity ratio
is 16.79%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profit in a dominant position within its industry.
Trend of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
EXCELLENT
LIQUIDITY RATIO
|
Current Ratio |
3.22 |
Impressive |
Industrial Average |
2.12 |
|
Quick Ratio |
2.55 |
|
|
|
|
Cash Conversion Cycle |
26.21 |
|
|
|
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 3.22 times in 2013, increased from 3.07 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 2.55 times in 2013,
increased from 2.37 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 27 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.24 |
Impressive |
Industrial Average |
0.53 |
|
Debt to Equity Ratio |
0.32 |
Impressive |
Industrial Average |
0.88 |
|
Times Interest Earned |
120.59 |
Impressive |
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 120.59 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 0.24 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
7.43 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.58 |
Impressive |
Industrial Average |
1.16 |
|
Inventory Conversion Period |
9.89 |
|
|
|
|
Inventory Turnover |
36.91 |
Impressive |
Industrial Average |
6.90 |
|
Receivables Conversion Period |
69.70 |
|
|
|
|
Receivables Turnover |
5.24 |
Satisfactory |
Industrial Average |
6.11 |
|
Payables Conversion Period |
53.37 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.24 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 16 days at the
end of 2012 to 10 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 23.23 times in year 2012 to 36.91
times in year 2013.
The company's Total Asset Turnover is calculated as 1.58 times and 1.76
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.60.10 |
|
|
1 |
Rs.102.40 |
|
Euro |
1 |
Rs.81.88 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.