MIRA INFORM REPORT
|
Report Date : |
19.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
GRIFFITH LABORATORIES LIMITED |
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Formerly Known As : |
GRIFFITH TNF LIMITED |
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Registered Office : |
129/11
Moo 17, Soi 5/3, Bangsaothong Industrial Estate, Samutprakarn 10540 |
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Country : |
Thailand |
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|
|
Financials (as on) : |
30.09.2013 |
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Date of Incorporation : |
16.06.2000 |
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Com. Reg. No.: |
0115543003721 [Former :
SOR POR. 9683] |
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Legal Form : |
Private Limited Company |
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Line of Business : |
engaged
in manufacturing various
kinds of food
ingredients and seasoning,
mainly for fast
food products, including
seasoning powder/paste, flavors & spices
bearing the brand name “GRIFFITH LABORATORIES” |
|
|
|
|
No of Employees : |
approximately 300
[Office Staff &
Factory Workers] |
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 |
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Payment Behaviour : |
No Complaints |
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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
GRIFFITH LABORATORIES
LIMITED
[FORMER : GRIFFITH
TNF LIMITED]
SUMMARY
BUSINESS
ADDRESS : 129/11 MOO 17,
SOI 5/3, BANGPLEE
INDUSTRIAL
ESTATE, BANGSAOTHONG, SAMUTPRAKARN
10540
TELEPHONE : [66] 2315-2339-40, 2315-1567-8,
2705-3335-7
FAX :
[66] 2315-2338
E-MAIL
ADDRESS : mktgtnf@griffith-tnf.co.th
phichet.ma@griffithlaboratories.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2000
REGISTRATION
NO. : 0115543003721 [Former
: SOR POR. 9683]
TAX
ID NO. : 3030110237
CAPITAL REGISTERED : BHT. 250,965,000
CAPITAL PAID-UP : BHT.
250,965,000
SHAREHOLDER’S PROPORTION : AMERICAN :
100%
FISCAL YEAR CLOSING DATE : SEPTEMBER 30
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
ROBERT EDWARD WALLER,
BRITISH
MANAGING DIRECTOR
NO.
OF STAFF : 300
LINES
OF BUSINESS : FOOD
INGREDIENT & SEASONING
PRODUCTS
MANUFACTURER, DISTRIBUTOR
& 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 June
16, 2000 as
a private limited
company under the
originally registered name “Griffith TNF
Limited”, by American groups.
On June 1,
2006, its name
was changed to
GRIFFITH LABORATORIES LIMITED.
Its business objective
is to manufacture
and distribute wide
range of food
ingredients and seasoning
for fast food
products to both
domestic and overseas
markets. It currently
employs 300 staff.
Subject is a
subsidiary of Griffith
Laboratories Worldwide Inc.,
U.S.A.
The subject’s registered
address is 129/11
Moo 17, Soi 5/3, Bangsaothong,
Samutprakarn 10540, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Joseph Robert Maslick
Jr. |
|
American |
66 |
|
Mr. James Stephen Legg |
|
American |
58 |
|
Mr. Pichet Maitrichit |
|
Thai |
43 |
|
Mr. William Charles Frost |
|
American |
61 |
|
Mr. King-Man Truman Yue |
|
British |
52 |
|
Mr. Robert Edward Waller |
|
British |
48 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Robert Edward Waller is
the Managing Director.
He is British
nationality with the
age of 48
years old.
Mr. Phichet Maitrichit
is the Finance & Administration Manager.
He is Thai nationality
with the age
of 43 years
old.
Ms. Jennifer Anarna is
the Sales & Marketing Manager.
She is American
nationality.
BUSINESS OPERATIONS
The subject is engaged in
manufacturing various kinds
of food ingredients
and seasoning, mainly
for fast food
products, including seasoning
powder/paste, flavors & spices
BRAND NAME
“GRIFFITH LABORATORIES”
PURCHASE
60% of raw
materials and chemicals
are purchased from
local suppliers and
agents, the remaining
40% is imported
from United States
of America, France,
India, Republic of
China, Germany and
Japan.
MAJOR SUPPLIERS
Griffith Laboratories Worldwide
Inc. : United
States of America
SALES [LOCAL]
80% of the
products is sold
locally by wholesale
to dealers and
end-users, the remaining
20% is exported
to United States
of America, Hong
Kong, Japan, France,
Spain, Italy, Singapore,
Hong Kong, Indonesia,
India, Malaysia and
Germany.
PARENT COMPANY
Griffith Laboratories Worldwide
Inc.
Address :
One Griffith Center,
Illinois, United States
of America
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 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
30-60-90 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.
EMPLOYMENT
The subject employs
approximately 300 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is owned for
administrative office, factory I
and warehouse at
the heading address.
Premise is located
in industrial area.
Factory II is
located at 155/3
Moo 17, T. Bangsaothong, A. Bangsaothong, Samutprakarn
10540.
COMMENT
The subject was
formed in 2000
as a manufacturer,
distributor and exporter of
food ingredients. The
products are for
local consumption and
exports. Despite economic
slowdown, subject also
reported its strong
sales in 2013, as well as
growing constantly
this year.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 100,000 divided into
1,000 shares of
Bht. 100 each.
On January 9,
2001, the capital
was increased to Bht. 250,965,000 divided into
2,509,650 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED
WERE : [as at
January 31, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Griffith Laboratories Worldwide,
Inc. Nationality: American Address : One Griffith
Center, Illinois, U.S.A. |
2,006,721 |
79.96 |
|
Griffith Laboratories, Inc. Nationality: American Address : One Griffith
Center, Illinois, U.S.A. |
501,930 |
20.00 |
|
Mr. Dean Ladd
Griffith Nationality: American Address : 1500 Sheridan
Street, Illinois, U.S.A. |
994 |
0.04 |
|
Mr. Joseph Robert
Maslick Jr. Nationality: American Address : 7556 Woodland
Court, Illinois, U.S.A. |
1 |
- |
|
Mr. James Stephen
Legg Nationality: American Address : 7525
Potavatomi Drive, Palos
Height, Illinois,
U.S.A. |
1 |
- |
Mr. William Charles
Frost Nationality: American Address : 2 Clearview
Lane, Lemond, Illinois 60439, U.S.A. |
1 |
- |
|
Mrs. Louis Joe
Griffith Nationality: American Address : 1500 Sheridan
Street, Illinois 60091, U.S.A. |
1 |
- |
|
Mr. Brian Add
Griffith Nationality: American Address : N 2312
Windward Lane Lake
Geneva,
Wisconsin 53147, U.S.A.
|
1 |
|
Total Shareholders : 8
Share Structure [as
at January 31,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign-American |
8 |
2,509,650 |
100.00 |
|
Total |
8 |
2,509,650 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Ajchara Suknaibaiboon No.
4642
BALANCE SHEET [BAHT]
The
latest financial figures
published for September
30, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
52,755,653 |
55,724,647 |
52,691,290 |
|
Trade Accounts Receivable |
201,573,948 |
185,967,942 |
123,414,078 |
|
Inventories |
167,929,423 |
187,911,407 |
98,202,392 |
|
Other Current Assets
|
35,755,774 |
37,075,237 |
19,047,085 |
|
|
|
|
|
|
Total Current Assets
|
458,014,798 |
466,679,233 |
293,354,845 |
|
|
|
|
|
|
Fixed Assets |
146,430,078 |
137,122,646 |
144,024,618 |
|
Goodwill |
61,483,249 |
69,168,655 |
76,854,061 |
|
Other Non-current Assets |
3,874,040 |
1,751,996 |
1,742,330 |
|
Total Assets |
669,802,165 |
674,722,530 |
515,975,854 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Short-term Loan from Financial Institutions |
19,485,463 |
36,763,476 |
25,000,000 |
|
Trade Accounts Payable |
208,008,213 |
222,933,852 |
125,862,148 |
|
Related Company Payable |
31,349,893 |
28,537,277 |
20,309,038 |
|
Accrued Expenses |
53,342,274 |
54,099,803 |
26,921,354 |
|
Accrued Income Tax |
37,886 |
34,239 |
33,787 |
|
Other Current Liabilities |
5,591,539 |
3,428,647 |
2,509,711 |
|
|
|
|
|
|
Total Current Liabilities |
317,815,268 |
345,797,294 |
200,636,038 |
|
|
|
|
|
|
Provision for Employee Benefits |
15,930,179 |
13,884,582 |
10,473,071 |
|
Total Liabilities |
333,745,447 |
359,681,876 |
211,109,109 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 2,509,650 shares |
250,965,000 |
250,965,000 |
250,965,000 |
|
|
|
|
|
|
Capital Paid |
250,965,000 |
250,965,000 |
250,965,000 |
|
Retained Earning Unappropriated |
85,091,718 |
64,075,654 |
53,901,745 |
|
Total Shareholders' Equity |
336,056,718 |
315,040,654 |
304,866,745 |
|
Total Liabilities &
Shareholders' Equity |
669,802,165 |
674,722,530 |
515,975,854 |
PROFIT & LOSS ACCOUNT
|
Sales |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
1,398,728,989 |
1,146,863,024 |
792,329,323 |
|
Gain on Exchange Rate |
2,102,689 |
1,689,252 |
1,541,029 |
|
Other Income |
24,110,542 |
17,453,004 |
9,897,365 |
|
Total Sales |
1,424,942,220 |
1,166,055,280 |
803,767,717 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,016,778,033 |
834,566,276 |
607,263,197 |
|
Selling Expenses |
101,017,096 |
84,134,764 |
91,034,496 |
|
Administrative Expenses |
284,016,233 |
235,092,773 |
166,024,363 |
|
Total Expenses |
1,401,811,362 |
1,153,793,813 |
864,322,056 |
|
Profit before Financial Cost & Income Tax |
23,130,858 |
12,211,467 |
[60,554,339] |
|
Financial Cost |
[2,086,902] |
[2,003,319] |
[550,003] |
|
Profit before Income Tax |
21,043,956 |
10,208,148 |
[61,104,342] |
|
Income Tax |
[27,892] |
[34,239] |
[33,791] |
|
Net Profit / [Loss] |
21,016,064 |
10,173,909 |
[61,138,133] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.44 |
1.35 |
1.46 |
|
QUICK RATIO |
TIMES |
0.80 |
0.70 |
0.88 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
9.55 |
8.36 |
5.50 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.09 |
1.70 |
1.54 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
60.28 |
82.18 |
59.03 |
|
INVENTORY TURNOVER |
TIMES |
6.05 |
4.44 |
6.18 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
52.60 |
59.19 |
56.85 |
|
RECEIVABLES TURNOVER |
TIMES |
6.94 |
6.17 |
6.42 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
74.67 |
97.50 |
75.65 |
|
CASH CONVERSION CYCLE |
DAYS |
38.21 |
43.87 |
40.23 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
72.69 |
72.77 |
76.64 |
|
SELLING & ADMINISTRATION |
% |
27.53 |
27.83 |
32.44 |
|
INTEREST |
% |
0.15 |
0.17 |
0.07 |
|
GROSS PROFIT MARGIN |
% |
29.18 |
28.90 |
24.80 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.65 |
1.07 |
(7.64) |
|
NET PROFIT MARGIN |
% |
1.50 |
0.89 |
(7.72) |
|
RETURN ON EQUITY |
% |
6.25 |
3.23 |
(20.05) |
|
RETURN ON ASSET |
% |
3.14 |
1.51 |
(11.85) |
|
EARNING PER SHARE |
BAHT |
8.37 |
4.05 |
(24.36) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.50 |
0.53 |
0.41 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.99 |
1.14 |
0.69 |
|
TIME INTEREST EARNED |
TIMES |
11.08 |
6.12 |
(110.10) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
21.96 |
44.75 |
|
|
OPERATING PROFIT |
% |
88.65 |
(120.25) |
|
|
NET PROFIT |
% |
106.57 |
116.64 |
|
|
FIXED ASSETS |
% |
6.79 |
(4.79) |
|
|
TOTAL ASSETS |
% |
(0.73) |
30.77 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 21.96%. Turnover has increased from THB
1,146,863,024.00 in 2012 to THB 1,398,728,989.00 in 2013. While net profit has
increased from THB 10,173,909.00 in 2012 to THB 21,016,064.00 in 2013. And
total assets has decreased from THB 674,722,530.00 in 2012 to THB
669,802,165.00 in 2013.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
29.18 |
Impressive |
Industrial
Average |
- |
|
Net Profit Margin |
1.50 |
Impressive |
Industrial
Average |
1.48 |
|
Return on Assets |
3.14 |
Impressive |
Industrial
Average |
1.46 |
|
Return on Equity |
6.25 |
Impressive |
Industrial
Average |
2.02 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from sales 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 29.18%. 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 1.5%,
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 ratio is
3.14%, 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 6.25%, 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 Downtrend
Return on Equity Downtrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.44 |
Impressive |
Industrial
Average |
1.44 |
|
Quick Ratio |
0.80 |
|
|
|
|
Cash Conversion Cycle |
38.21 |
|
|
|
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 1.44 times in 2013, increased from 1.35 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 0.8 times in 2013,
increased from 0.7 times, by excluding inventory, the company may have problems
meeting current liabilities.
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 39 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.50 |
Impressive |
Industrial
Average |
0.50 |
|
Debt to Equity Ratio |
0.99 |
Impressive |
Industrial
Average |
0.99 |
|
Times Interest Earned |
11.08 |
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 11.09 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 0.5 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 : EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
9.55 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
2.09 |
Impressive |
Industrial
Average |
0.99 |
|
Inventory Conversion Period |
60.28 |
|
|
|
|
Inventory Turnover |
6.05 |
Impressive |
Industrial
Average |
3.48 |
|
Receivables Conversion Period |
52.60 |
|
|
|
|
Receivables Turnover |
6.94 |
Impressive |
Industrial
Average |
3.58 |
|
Payables Conversion Period |
74.67 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.94 and 6.17 in
2013 and 2012 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate sales. 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 2013
increased from 2012. 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 decreased from 82 days at the
end of 2012 to 60 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 4.44 times in year 2012 to 6.05 times
in year 2013.
The company's Total Asset Turnover is calculated as 2.09 times and 1.7
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.58.86 |
|
UK Pound |
1 |
Rs.98.82 |
|
Euro |
1 |
Rs.80.72 |
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.