MIRA INFORM REPORT
|
Report Date : |
03.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
ARIHA DIAMOND JEWELRY CO., LTD. |
|
|
|
|
Registered Office : |
123 Narathiwat Rachanakarin Road, Chongnonsee, Yannawa, Bangkok 10120 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
2004 |
|
|
|
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Com. Reg. No.: |
0105547065926 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
LINE OF BUSINESS : |
IMPORTER,
DISTRIBUTOR AND EXPORTER OF GEMS AND DIAMOND JEWELRY PRODUCTS |
|
|
|
|
No. of Employees : |
6 |
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 : |
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
ARIHA DIAMOND
JEWELRY CO., LTD.
SUMMARY
BUSINESS ADDRESS : 123 NARATHIWAT RACHANAKARIN
ROAD,
CHONGNONSEE, YANNAWA,
BANGKOK 10120
TELEPHONE : [66] 2678-1484-7
FAX : [66] 2678-1483
E-MAIL ADDRESS : arihajewel@yahoo.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2004
REGISTRATION NO. : 0105547065926
TAX ID NO. : 3031415980
CAPITAL REGISTERED : BHT.
30,000,000
CAPITAL PAID-UP : BHT.
30,000,000
SHAREHOLDER’S PROPORTION : FOREIGN :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. ANIL BABULAL
SHAH, INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 6
LINES OF BUSINESS : GEMS
AND DIAMOND JEWELRY
PRODUCTS
IMPORTER, 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 May
14, 2004 as
a private limited
company under the registered name
ARIHA DIAMOND JEWELRY
CO., LTD., by Foreign groups, with
the business objective
to import and
distribute various kinds
of gems and
diamond jewelry products
to both domestic
and international markets.
It currently employs
approximate 6 staff.
The subject’s registered
address was initially
at 2210/22 Narathiwat
Rachanakarin Road, Chongnonsee,
Yannawa, Bangkok 10120.
On November 30,
2010, the subject’s
registered address was
relocated to 123 Narathiwat
Rachanakarin Road, Chongnonsee,
Yannawa, Bangkok 10120,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Anil Babulal Shah |
|
Indian |
40 |
|
Mr. Chandra Kumar Purohit |
|
Indian |
43 |
AUTHORIZED
PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Anil Babulal Shah
is the Managing
Director.
He is Indian
nationality with the
age of 40
years old.
BUSINESS
OPERATIONS
The subject is
engaged in importing,
distributing and exporting various
kinds of gems
and diamond jewelry
products, such as
bracelet, ring, necklace,
earring and etc.
PURCHASE
The products are
purchased from suppliers
both domestic and
overseas, mainly in
India.
SALES
The products are
sold to customers
both local and
overseas, mainly in
Italy, Hong Kong
and India.
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
D/A and T/T.
Exports are against
T/T.
EMPLOYMENT
The subject currently
employs 6 staff.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in commercial/residential area.
COMMENT
The subject is
an importer, distributor
and exporter of
diamond and precious
stones for both
local and overseas jewelry
production industry. Its
operating performance in 2012
was satisfactory with
an increase in
both sales revenue
and net profit comparing
to the previous year.
Due to a
current economic slowdown
and political turmoil,
the subject would
probably encounter slow
growth this year.
In general, the
subject is doing
moderate business.
FINANCIAL INFORMATION
The capital was
registered at Bht.
2,000,000 divided into
20,000 shares of Bht.
100 each with
fully paid.
The capital was
increased later as
follows:
Bht. 4,000,000
on June 22,
2005
Bht. 6,000,000
on September 15,
2005
Bht. 8,000,000
on November 23,
2006
Bht. 12,000,000
on November 1,
2007
Bht. 20,000,000
on October 27,
2009
Bht. 30,000,000
on August 29,
2012
The latest registered
capital was increased
to Bht. 30,000,000 divided
into 300,000 shares of
Bht. 100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE
[as at June
15, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Chandra Kumar Purohit Nationality: Indian Address : 919/395
Silom Road, Silom,
Bangrak, Bangkok |
138,000 |
46.00 |
|
Mr. Anil Babulal Shah Nationality: Indian Address : 123
Narathiwat Rachanakarin Road,
Chongnonsee, Yannawa, Bangkok
10120 |
105,000 |
35.00 |
|
Sejal Gems International DMCC Nationality: U.A.E. Address : Dubai,
United Arab Emirates |
57,000 |
19.00 |
Total Shareholders : 3
Share Structure [as
at June 15,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
3 |
300,000 |
100.00 |
|
Total |
3 |
300,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Ms. Malai Udomnitirat No.
6758
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 |
1,506,706.31 |
1,146,921.04 |
605,782.17 |
|
Trade Accounts & Other Receivable |
35,189,730.43 |
50,694,510.37 |
39,293,913.55 |
|
Inventories |
142,202,964.69 |
136,443,354.62 |
80,009,056.66 |
|
Short-term Loans |
- |
1,580,000.00 |
3,200,000.00 |
|
Other Current Assets
|
2,997,000.25 |
496,596.07 |
- |
|
|
|
|
|
|
Total Current Assets
|
181,896,401.68 |
190,361,382.10 |
123,108,752.38 |
|
|
|
|
|
|
Fixed Assets |
5,039,576.60 |
4,214,689.28 |
1,389,705.59 |
|
Intangible Assets |
211,439.02 |
421,909.42 |
632,379.82 |
|
Other Non-current Assets |
294,700.00 |
294,700.00 |
296,399.03 |
|
Total Assets |
187,442,117.30 |
195,292,680.80 |
125,427,236.82 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
|
|
|
|
Trade Accounts & Other Payable |
117,088,913.72 |
160,589,895.86 |
94,516,547.20 |
|
Current Portion of Long-term Loans |
640,758.61 |
602,405.52 |
- |
|
Short-term Loan from Related Person |
6,783,754.25 |
- |
- |
|
Pre-received Income |
14,508,848.21 |
- |
- |
|
Accrued Income Tax |
468,303.72 |
597,012.01 |
1,489,094.02 |
|
Other Current Liabilities |
124,615.84 |
- |
- |
|
|
|
|
|
|
Total Current Liabilities |
139,615,194.35 |
161,789,313.39 |
96,005,641.22 |
|
|
|
|
|
|
Long-term Liabilities, net |
1,476,308.42 |
2,119,498.19 |
- |
|
Total Liabilities |
141,091,502.77 |
163,908,811.58 |
96,005,641.22 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 300,000 shares
in 2012; 200,000
shares in 2011 & 2010 |
30,000,000.00 |
20,000,000.00 |
20,000,000.00 |
|
|
|
|
|
|
Capital Paid |
30,000,000.00 |
20,000,000.00 |
20,000,000.00 |
|
Retained Earning Unappropriated |
16,350,614.53 |
11,383,869.22 |
9,421,595.60 |
|
Total Shareholders' Equity |
46,350,614.53 |
31,383,869.22 |
29,421,595.60 |
|
Total Liabilities &
Shareholders' Equity |
187,442,117.30 |
195,292,680.80 |
125,427,236.82 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
318,812,027.64 |
307,081,778.92 |
267,457,100.30 |
|
Other Income |
4,646,678.97 |
966,994.62 |
6,116,725.30 |
|
Total Revenues |
323,458,706.61 |
308,048,773.54 |
273,573,825.60 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
294,083,587.17 |
277,169,711.23 |
233,551,298.74 |
|
Selling Expenses |
17,429,403.87 |
18,190,432.17 |
22,779,370.46 |
|
Administrative Expenses |
6,130,503.22 |
9,357,436.40 |
10,968,742.96 |
|
Total Expenses |
317,643,494.26 |
304,717,579.80 |
267,299,412.16 |
|
Profit / [Loss] before
Financial Expenses & Income Tax |
5,815,212.35 |
3,331,193.74 |
6,274,413.44 |
|
Financial Expenses |
[175,163.32] |
[171,908.11] |
- |
|
Profit / [Loss] before Income Tax |
5,640,049.03 |
3,159,285.63 |
6,274,413.44 |
|
Income Tax |
[1,273,303.72] |
[1,197,012.01] |
[2,119,094.02] |
|
Net Profit / [Loss] |
4,366,745.31 |
1,962,273.62 |
4,155,319.42 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.30 |
1.18 |
1.28 |
|
QUICK RATIO |
TIMES |
0.26 |
0.32 |
0.42 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
63.26 |
72.86 |
192.46 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.70 |
1.57 |
2.13 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
176.49 |
179.68 |
125.04 |
|
INVENTORY TURNOVER |
TIMES |
2.07 |
2.03 |
2.92 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
40.29 |
60.26 |
53.62 |
|
RECEIVABLES TURNOVER |
TIMES |
9.06 |
6.06 |
6.81 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
145.32 |
211.48 |
147.71 |
|
CASH CONVERSION CYCLE |
DAYS |
71.46 |
28.46 |
30.95 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
92.24 |
90.26 |
87.32 |
|
SELLING & ADMINISTRATION |
% |
7.39 |
8.97 |
12.62 |
|
INTEREST |
% |
0.05 |
0.06 |
- |
|
GROSS PROFIT MARGIN |
% |
9.21 |
10.06 |
14.96 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.82 |
1.08 |
2.35 |
|
NET PROFIT MARGIN |
% |
1.37 |
0.64 |
1.55 |
|
RETURN ON EQUITY |
% |
9.42 |
6.25 |
14.12 |
|
RETURN ON ASSET |
% |
2.33 |
1.00 |
3.31 |
|
EARNING PER SHARE |
BAHT |
14.56 |
9.81 |
20.78 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.75 |
0.84 |
0.77 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.04 |
5.22 |
3.26 |
|
TIME INTEREST EARNED |
TIMES |
33.20 |
19.38 |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
3.82 |
14.82 |
|
|
OPERATING PROFIT |
% |
74.57 |
(46.91) |
|
|
NET PROFIT |
% |
122.53 |
(52.78) |
|
|
FIXED ASSETS |
% |
19.57 |
203.28 |
|
|
TOTAL ASSETS |
% |
(4.02) |
55.70 |
|
ANNUAL
GROWTH : IMPRESSIVE
An annual sales growth is 3.82%. Turnover has increased from THB
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
9.21 |
Impressive |
Industrial Average |
0.61 |
|
Net Profit Margin |
1.37 |
Impressive |
Industrial Average |
0.03 |
|
Return on Assets |
2.33 |
Impressive |
Industrial Average |
0.89 |
|
Return on Equity |
9.42 |
Impressive |
Industrial Average |
4.08 |
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 9.21%. When compared with the industry average, the ratio of the
company was higher, indicated that company was more profitable than the same
industry.
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 1.37% 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 ratio is
2.33%, 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 9.42%, 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 :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.30 |
Satisfactory |
Industrial Average |
1.32 |
|
Quick Ratio |
0.26 |
|
|
|
|
Cash Conversion Cycle |
71.46 |
|
|
|
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 1.3 times in 2012, decreased from 1.18 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 0.26 times in 2012,
decreased from 0.32 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 72 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.75 |
Impressive |
Industrial Average |
0.77 |
|
Debt to Equity Ratio |
3.04 |
Acceptable |
Industrial Average |
3.43 |
|
Times Interest Earned |
33.20 |
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 33.2 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 0.75 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 :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
63.26 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.70 |
Deteriorated |
Industrial Average |
34.63 |
|
Inventory Conversion Period |
176.49 |
|
|
|
|
Inventory Turnover |
2.07 |
Deteriorated |
Industrial Average |
89.31 |
|
Receivables Conversion Period |
40.29 |
|
|
|
|
Receivables Turnover |
9.06 |
Deteriorated |
Industrial Average |
44.32 |
|
Payables Conversion Period |
145.32 |
|
|
|
The company's Account Receivable Ratio is calculated as 9.06 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 180 days at the end of 2011 to
176 days at the end of 2012. This represents a positive trend. And Inventory
turnover has increased from 2.03 times in year 2011 to 2.07 times in year 2012.
The company's Total Asset Turnover is calculated as 1.7 times and 1.57
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
DIAMOND INDUSTRY – INDIA
-
From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of
diamonds but history says that in the remote past, diamonds were mined only in
India. Diamond production in India can be traced back to almost 8th
Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
-
The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
-
Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
-
Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
-
Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
-
Gem & Jewellery Export Promotion Council in its
statistical data has shown the export of polished diamonds to have increase by
28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in
February, 2012, India exported $ 1.84 billion worth of polished diamonds in
February 2013. A senior executive of GJEPC said, “Export of cut and polished
diamonds started falling month-wise after the imposition of 2 % of import duty
on the polished diamonds. But February, 2013 has given a new ray of hope to the
industry as the export of polished diamonds has actually increased by 28 %. It
means the industry is on the track of recovery and round tripping of
diamonds has stopped completely.” Demand has started coming from the US, the
UK, Japan and China. India’s polished diamond export is expected to cross $ 21
bn in 2013-14.
-
The banking sector has started exercising restraint while
following prudent risk management norms when lending money to gems and
jewellery sector. This follows the implementation of Basel III accord – a
global voluntary regulatory standard on bank capital adequacy, stress testing
and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.23 |
|
|
1 |
Rs.101.68 |
|
Euro |
1 |
Rs.83.46 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.