MIRA
INFORM REPORT
|
Report Date : |
28.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
FASHION FOOD COMPANY LIMITED |
|
|
|
|
Registered Office : |
105/4 Moo 6,
Petchkasem Road, T.
Klongmai, A. Sampran, Nakornpathom 73110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
1988 |
|
|
|
|
Reg. No.: |
0735531000808 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor and
Exporter of Food and Snacks |
|
|
|
|
No. of Employees : |
800 |
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 – 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. 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
FASHION FOOD
COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 105/4 MOO 6,
PETCHKASEM ROAD,
T.
KLONGMAI, A. SAMPRAN,
NAKORNPATHOM
73110, THAILAND
TELEPHONE : [66] 34
324-777, 34 324-473-6
FAX : [66] 34
321-195
E-MAIL ADDRESS : ffco@ff.co.th
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1988
REGISTRATION NO. : 0735531000808
TAX ID NO. : 3701004759
CAPITAL REGISTERED : BHT.
210,000,000
CAPITAL PAID-UP : BHT.
210,000,000
SHAREHOLDER’S PROPORTION : THAI :
100 %
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
THIRAKIT SATHIRAKUL, THAI
MANAGING DIRECTOR
NO. OF STAFF : 800
LINES OF BUSINESS : FOOD
AND SNACKS
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 December
26, 1988 as private
limited company under
the name style
FASHION FOOD COMPANY
LIMITED by Thai
groups, with the
business objective to
manufacture food and
snacks to both
local and overseas
markets. It currently
employs approximately 800
staff.
The subject’s products
have been certified
as Halal by
the Islamic Council
of Thailand. It
was also certified
Hazard Analysis Critical
Control Point System
[HACCP] and Good
Manufacturing Practice [GMP],
which assure all
consumer groups that
the subject is
a leader in
hygiene and food safety
standards.
The subject’s registered
address is 105/4
Moo 6, Petchkasem
Rd., T. Klongmai,
A. Sampran, Nakornpathom
73110, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Thirakit Sathirakul |
[x] |
Thai |
61 |
|
Mr. Ong-arj Praepanitchai |
[x] |
Thai |
63 |
|
Ms. Jintana Pongsri |
[x] |
Thai |
50 |
|
Mr. Surasak Pongsri |
|
Thai |
45 |
|
Ms. Kritiya Yingnuanchan |
|
Thai |
59 |
AUTHORIZED PERSON
Any two of the
above directors [x] can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Thirakit Sathirakul
is the Managing
Director.
He is Thai
nationality with the
age of 61
years old.
Mr. Jirachote Sathirakul
is the Sales
& Marketing Manager.
He is Thai
nationality.
Mr. Rungroj Sathirakul
is the Factory
Manager.
He is Thai
nationality.
Mr. Bancha Tangrod
is the Engineering
Manager.
He is Thai
nationality.
Ms. Suchitra Komdom is
the Quality Assurance
Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing, exporting
and distributing wide
range of food
and snacks as the
followings:
|
Products |
Brands |
|
|
|
|
Potato Chip |
“BOMB” |
|
Instant Noodles |
“FF” |
|
Bowl Instant Noodles |
“FF” |
|
Crackers |
“FF” |
|
Instant Rice Soup |
“FF” |
|
Bakery/Cookie |
“YES” |
PURCHASE
80% of raw material
and food ingredient
are purchased from
local suppliers, the
remaining 20% is
imported from Republic
of China, Malaysia
and India.
EXPORT [COUNTRIES]
70% of the
products is exported
to United States
of America, Canada, Europe,
United Kingdom, Australia,
Taiwan, Hong Kong, Singapore,
Malaysia, Myanmar,
Sri Lanka, Philippines,
South Africa, Pakistan,
Laos, Cambodia, Vietnam,
Indonesia, India, Dubai
and other Middle
East countries.
SALES
30% of the
products is sold
locally to wholesalers
mainly supermarket and
convenience store nationwide.
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 IRICO’S
DATABASE 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 employs
approximately 800 staff,
comprising 300 permanent staff & workers and
500 temporary workers.
LOCATION DETAILS
The premise is owned
for administrative office,
factory I and warehouse
at the heading
address. Premise is
located on the
outskirts of Bangkok.
Factory II is
located at 105/5
Moo 6, Petchkasem
Rd., T. Klongmai, A. Sampran,
Nakornpathom 73110.
COMMENT
Subject was formed
in 1988 as
a manufacturer, distributor
and exporter of
food and snack
products. It has an
expanding export market
throughout the world and
are widely recognized for their
popularity and quality.
The products are
mainly served international
markets.
Despite slow sales in
domestic market, the subject still
maintains moderate business.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 32,000,000 divided
into 320,000 shares of
Bht. 100 each.
The capital was
increased later as
the followings:
Bht. 70,000,000 on
February 8, 1993
Bht. 140,000,000 on
July 12, 2005
Bht. 210,000,000 on
February 9, 2006
The latest registered capital
was increased to
Bht. 210,000,000 divided
into 2,100,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
[as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Ong-arj Praepanitchai Nationality: Thai Address : 92
Ratchaprarop Rd., Phyathai, Bangkok |
368,617 |
17.55 |
|
Mr. Surasak Pongsri Nationality: Thai Address : 414/57
Buddhamonthon Sai 2,
Bangkae, Bangkok |
226,330 |
10.78 |
|
Ms. Kritiya Yingnuanchan Nationality: Thai Address : 100
Soi Sukorn, Trimitr
Rd., Taladnoi,
Samphantawong, Bangkok |
201,064 |
9.58 |
|
Mr. Rungroj Sathirakul Nationality: Thai Address : 337
Soi Akarnsongkroh, Thungwatdorn,
Sathorn, Bangkok |
129,787 |
6.18 |
|
Mr. Jirachote Sathirakul Nationality: Thai Address : 337
Soi Akarnsongkroh, Thungwatdorn,
Sathorn, Bangkok |
128,723 |
6.13 |
|
Mr. Choolarp Sathirakul Nationality: Thai Address : 337
Soi Akarnsongkroh, Thungwatdorn,
Sathorn, Bangkok |
128,723 |
6.13 |
|
Ms. Ruangsiri Sathirakul Nationality: Thai Address : 337
Soi Akarnsongkroh, Thungwatdorn,
Sathorn, Bangkok |
128,723 |
6.13 |
|
|
|
|
|
Mr. Boonchai Lohsawatdikul Nationality: Thai Address : 70/28
Mooban Pongpetch,
Ngamwongwan Rd., Thungsonghong,
Bangkhen, Bangkok |
89,362 |
4.25 |
|
Mr. Lek Kittikhuncharoen Nationality: Thai Address : 42/15
Moo 2, Petchkasem Rd.,
T. Omyai, A. Sampran,
Nakornpathom |
89,362 |
4.25 |
|
Others |
609,309 |
29.02 |
Total Shareholders : 22
Share Structure
[as at April
30, 2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
22 |
2,100,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
22 |
2,100,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Mr. Jarin Limpachote
No. 1983
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
|
18,123,891.23 |
8,067,548.15 |
9,449,834.46 |
|
Trade Account & Other
Receivable |
97,180,140.30 |
149,237,884.88 |
91,233,997.81 |
|
Inventories |
106,938,466.97 |
113,841,948.66 |
61,395,499.68 |
|
Other Current Assets
|
9,820,663.48 |
20,316,305.19 |
15,038,027.55 |
|
|
|
|
|
|
Total Current Assets
|
232,063,161.98 |
291,463,686.88 |
177,117,359.50 |
|
Fixed Assets |
374,717,078.23 |
299,581,331.00 |
244,235,850.14 |
|
Other Non-current Assets |
- |
3,961,425.22 |
4,736,719.00 |
|
Total Assets |
606,780,240.21 |
595,006,443.10 |
426,089,928.64 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Bank |
205,914,881.27 |
272,632,056.73 |
190,961,938.80 |
|
Trade Account Payable |
64,436,815.55 |
170,684,560.54 |
94,526,912.25 |
|
Current Portion of Long-term
Loan |
- |
- |
4,152,011.21 |
|
Other Current Liabilities |
18,457,168.66 |
17,835,695.43 |
13,997,543.20 |
|
|
|
|
|
|
Total Current Liabilities |
288,808,865.48 |
461,152,312.70 |
303,638,405.46 |
|
Long-term Loan from
Person or Related Company |
66,356,600.00 |
55,409,900.00 |
48,940,400.00 |
|
Long-term Loan from
Financial Institution |
168,787,535.82 |
- |
- |
|
Total Liabilities |
523,953,001.30 |
516,562,212.70 |
352,578,805.46 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 2,100,000 shares |
210,000,000.00 |
210,000,000.00 |
210,000,000.00 |
|
|
|
|
|
|
Capital Paid |
210,000,000.00 |
210,000,000.00 |
210,000,000.00 |
|
Retained Earning Appropriated for Statutory Reserve |
45,853,205.00 |
45,853,205.00 |
45,853,205.00 |
|
Unappropriated [Deficit] |
[173,025,966.09] |
[177,408,974.60] |
[182,342,081.82] |
|
Total Shareholders' Equity |
82,827,238.91 |
78,444,230.40 |
73,511,123.18 |
|
Total Liabilities &
Shareholders' Equity |
606,780,240.21 |
595,006,443.10 |
426,089,928.64 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
868,159,432.19 |
977,923,253.49 |
700,448,122.27 |
|
Other Income |
6,612,597.41 |
4,607,658.71 |
2,816,757.06 |
|
Total Revenues |
874,772,029.60 |
982,530,912.20 |
703,264,879.33 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
690,006,658.26 |
804,137,305.27 |
551,861,223.60 |
|
Selling & Administrative Expenses |
162,777,957.34 |
162,876,404.57 |
135,668,006.23 |
|
Total Expenses |
852,784,615.60 |
967,013,709.84 |
687,529,229.83 |
|
|
|
|
|
|
Profit / Loss] before Financial
Cost & Income Tax |
21,987,414.00 |
15,517,202.36 |
15,735,649.50 |
|
Financial Cost |
[17,604,405.49] |
[10,584,095.14] |
-7,598,832.31 |
|
|
|
|
|
|
Net Profit / [Loss] |
4,383,008.51 |
4,933,107.22 |
8,136,817.19 |
|
Retained Earning,
beginning of year |
[177,408,974.60] |
[182,342,081.82] |
[190,478,899.01] |
|
Retained Earning, end
of year |
[173,025,966.09] |
[177,408,974.60] |
[182,342,081.82] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.80 |
0.63 |
0.58 |
|
QUICK RATIO |
TIMES |
0.40 |
0.34 |
0.33 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.32 |
3.26 |
2.87 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.43 |
1.64 |
1.64 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
56.57 |
51.67 |
40.61 |
|
INVENTORY TURNOVER |
TIMES |
6.45 |
7.06 |
8.99 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
40.86 |
55.70 |
47.54 |
|
RECEIVABLES TURNOVER |
TIMES |
8.93 |
6.55 |
7.68 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
34.09 |
77.47 |
62.52 |
|
CASH CONVERSION CYCLE |
DAYS |
63.34 |
29.90 |
25.63 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
79.48 |
82.23 |
78.79 |
|
SELLING & ADMINISTRATION |
% |
18.75 |
16.66 |
19.37 |
|
INTEREST |
% |
2.03 |
1.08 |
1.08 |
|
GROSS PROFIT MARGIN |
% |
21.28 |
18.24 |
21.62 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.53 |
1.59 |
2.25 |
|
NET PROFIT MARGIN |
% |
0.50 |
0.50 |
1.16 |
|
RETURN ON EQUITY |
% |
5.29 |
6.29 |
11.07 |
|
RETURN ON ASSET |
% |
0.72 |
0.83 |
1.91 |
|
EARNING PER SHARE |
BAHT |
2.09 |
2.35 |
3.87 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.86 |
0.87 |
0.83 |
|
DEBT TO EQUITY RATIO |
TIMES |
6.33 |
6.59 |
4.80 |
|
TIME INTEREST EARNED |
TIMES |
1.25 |
1.47 |
2.07 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(11.22) |
39.61 |
|
|
OPERATING PROFIT |
% |
41.70 |
(1.39) |
|
|
NET PROFIT |
% |
(11.15) |
(39.37) |
|
|
FIXED ASSETS |
% |
25.08 |
22.66 |
|
|
TOTAL ASSETS |
% |
1.98 |
39.64 |
|
ANNUAL GROWTH : SATISFACTORY
An annual sales growth is -11.22%. Turnover has decreased from THB
PROFITABILITY : RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
21.28 |
Deteriorated |
Industrial Average |
97.43 |
|
Net Profit Margin |
0.50 |
Deteriorated |
Industrial Average |
4.58 |
|
Return on Assets |
0.72 |
Deteriorated |
Industrial Average |
6.21 |
|
Return on Equity |
5.29 |
Deteriorated |
Industrial Average |
12.79 |
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 21.28%. 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 0.5%. 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 0.72%.
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 5.29%.
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 |
0.80 |
Risky |
Industrial Average |
1.18 |
|
Quick Ratio |
0.40 |
|
|
|
|
Cash Conversion Cycle |
63.34 |
|
|
|
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 0.8 times in 2012, increased from 0.63 times, then the company may
have problems meeting its short-term obligations. 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 2012,
increased from 0.34 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 64 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.86 |
Acceptable |
Industrial Average |
0.53 |
|
Debt to Equity Ratio |
6.33 |
Risky |
Industrial Average |
1.12 |
|
Times Interest Earned |
1.25 |
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 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 1.25 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 0.86 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 |
2.32 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.43 |
Impressive |
Industrial Average |
1.36 |
|
Inventory Conversion Period |
56.57 |
|
|
|
|
Inventory Turnover |
6.45 |
Satisfactory |
Industrial Average |
7.85 |
|
Receivables Conversion Period |
40.86 |
|
|
|
|
Receivables Turnover |
8.93 |
Impressive |
Industrial Average |
3.59 |
|
Payables Conversion Period |
34.09 |
|
|
|
The company's Account Receivable Ratio is calculated as 8.93 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 increased from 52 days at the
end of 2011 to 57 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 7.06 times in year 2011 to 6.45 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.43 times and 1.64
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.60.13 |
|
|
1 |
Rs.99.65 |
|
Euro |
1 |
Rs.82.91 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.