MIRA
INFORM REPORT
|
Report Date : |
21.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
KRISH STAR CO., LTD |
|
|
|
|
Registered Office : |
Unit H-I,
34th Floor, Gems
Tower, 1249/211
Charoenkrung Road, Suriyawongse, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Year of Establishment : |
2006 |
|
|
|
|
Com. Reg. No.: |
0105549106182 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Engaged in importing
and distributing various
kinds of gemstones,
precious stones and
diamonds [loose white diamond]
for jewelry production
industry, as well
as exporting of local
jewelry products. |
|
|
|
|
No of Employees : |
5 |
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. Thailand is trying to
maintain growth by encouraging domestic consumption and public investment to
offset weak exports in 2012. 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 crisis severely cut Thailand's exports, with most sectors experiencing
double-digit drops. In 2009, the economy contracted 2.3%. However, in 2010,
Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports
rebounded. In late 2011 growth was interrupted by historic flooding in the
industrial areas in Bangkok and its five surrounding provinces, crippling the
manufacturing sector. Industry recovered from the second quarter of 2012 onward
with GDP growth at 5.5% in 2012. The government has 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 next
seven years with a plan to start in 2013.
|
Source
: CIA |
COMPANY NAME
KRISH STAR
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : UNIT
H-I, 34th FLOOR,
GEMS TOWER,
1249/211 CHAROENKRUNG
ROAD,
SURIYAWONGSE, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2267-2353-4,
089 668-7312
FAX :
[66] 2267-2355
E-MAIL
ADDRESS : salekrishstar@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2006
REGISTRATION
NO. : 0105549106182
TAX
ID NO. : 3032356831
CAPITAL REGISTERED : BHT. 8,000,000
CAPITAL PAID-UP : BHT.
8,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN : 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SIDDHANT PRAVIN SHAH,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 5
LINES
OF BUSINESS : DIAMONDS, GEMSTONES
AND JEWELRY PRODUCTS
IMPORTER, EXPORTER
AND DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS ENGAGMENT
MANAGEMENT STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on September 4,
2006 as a
private limited company
under the name
style KRISH STAR
CO., LTD., by Thai
and Indian groups, with
the business objective
to import and
distribute diamonds, gemstones
and jewelry products. It
currently employs 5
staff.
The subject’s registered address is Unit H-I, 34th Flr.,
Gems Tower, 1249/211 Charoenkrung Rd., Suriyawongse, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Siddhant Pravin Shah |
[x] |
Indian |
38 |
|
Mr. Arun Gupta |
|
Indian |
42 |
|
Mr. Nikhil Siddhant Shah |
|
Indian |
- |
AUTHORIZED PERSON
Only the mentioned
director [x] can
sign of both
of the rest
directors can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Siddhant Pravin Shah
is the Managing
Director.
He is Indian
nationality with the
age of 38
years old.
Mr. Nikhil Siddhant Shah is
the Head of
Marketing.
He is Indian
nationality.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing various
kinds of gemstones,
precious stones and
diamonds [loose white diamond]
for jewelry production
industry, as well
as exporting of local
jewelry products.
PURCHASE
90%
of the products
is imported from
India and Hong
Kong, the remaining
10% is purchased
from local suppliers.
SALES [LOCAL]
Diamonds and gemstones are
sold locally by
wholesale to manufacturers
and traders.
EXPORT
Jewelry products are
exported to the
countries in Southeast
Asia.
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 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
T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs 5
staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
COMMENT
The
subject was formed
in 2006 as
an importer and
distributor of diamonds and gems
stones as well as
exporter of jewelry
products. Subject reported moderate
business in 2012.
Consumption of luxury
products in 2013
has grown at
slow pace due
to low consumer
spending, and expected
to continue at the
beginning of the
year 2014 from
the political unrest
at the moment.
Nevertheless, the subject’s business
remains positive and
profitable.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000
divided into 20,000
shares of Bht.
100 each.
The
capital was increased
later as follows:
Bht. 4,000,000
on August 22,
2007
Bht. 8,000,000
on July 19,
2011
The
latest registered capital
was increased to
Bht. 8,000,000 divided into
80,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
[as
at April 30,
2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Siddhant Pravin Shah Nationality: Indian Address : 34th Floor,
Gems Tower, 1249/211
Charoenkrung Rd., Suriyawongse, Bangrak, Bangkok |
28,000 |
35.00 |
|
Mrs. Kamolluk Sukree Nationality: Thai Address : 72/579
Soi Salathammasop 15,
Salathammasop,
Taweewattana, Bangkok |
20,400 |
25.50 |
|
Mr. Adisorn Prakobkij Nationality: Thai Address : 40
Maesod-maedao Rd., Maesod,
Tak |
20,400 |
25.50 |
|
Mr. Arun Gupta Nationality: Indian Address : 34th Floor,
Gems Tower, 1249/211
Charoenkrung Rd., Suriyawongse, Bangrak, Bangkok |
11,200 |
14.00 |
Total Shareholders : 4
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
40,800 |
51.00 |
|
Foreign - Indian |
2 |
39,200 |
49.00 |
|
Total |
4 |
80,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :
Mr. Vacharin Kongsawat
No. 6313
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash in hand
& at Bank
|
310,708.94 |
573,884.64 |
1,138,653.31 |
|
Trade Accounts & Other Receivable |
37,899,052.57 |
36,726,353.50 |
22,130,605.54 |
|
Inventories |
59,803,566.85 |
19,366,465.35 |
4,364,450.98 |
|
Total Current Assets
|
98,013,328.36 |
56,666,703.49 |
27,634,709.83 |
|
|
|
|
|
|
Fixed Assets |
1,150,565.23 |
41,854.00 |
20,286.17 |
|
Other Non-current Assets |
103,000.00 |
103,000.00 |
103,000.00 |
|
Total Assets |
99,266,893.59 |
56,811,557.49 |
27,757,996.00 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable |
83,430,948.18 |
43,209,190.39 |
20,089,475.67 |
|
Short-term Loans |
- |
- |
1,224,000.00 |
|
Current Portion of Hire-purchase Payable |
236,792.52 |
- |
- |
|
Accrued Income Tax |
283,184.39 |
355,607.99 |
425,464.96 |
|
Total Current Liabilities |
83,950,925.09 |
43,564,798.38 |
21,738,940.63 |
|
Hire-purchase Payable, Net of Current Portion |
532,783.17 |
- |
- |
|
Long-term Loans |
1,800,000.00 |
2,100,000.00 |
- |
|
Total Liabilities |
86,283,708.26 |
45,664,798.38 |
21,738,940.63 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 80,000 shares
in 2012 & 2011; 40,000
shares in 2010 respectively |
8,000,000.00 |
8,000,000.00 |
4,000,000.00 |
|
Capital Paid |
8,000,000.00 |
8,000,000.00 |
4,000,000.00 |
|
Retained Earning-
Unappropriated |
4,983,185.33 |
3,146,759.11 |
2,019,055.37 |
|
Total Shareholders' Equity |
12,983,185.33 |
11,146,759.11 |
6,019,055.37 |
|
Total Liabilities & Shareholders' Equity |
99,266,893.59 |
56,811,557.49 |
27,757,996.00 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales-Local Income |
17,204,741.35 |
10,672,728.69 |
8,484,863.20 |
|
Sales-Foreign Income |
26,559,884.96 |
24,302,164.63 |
22,617,883.40 |
|
Sales Income [ tax-exempt] |
28,939,410.82 |
31,863,880.79 |
15,226,413.29 |
|
Gain on Exchange Rate |
1,248,788.69 |
- |
1,617,078.85 |
|
Other Income |
631.43 |
300.00 |
105,873.82 |
|
Interest Income |
73.56 |
104.25 |
124.00 |
|
Total Revenues |
73,953,530.81 |
66,839,178.36 |
48,052,236.56 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods Sold
|
65,983,618.48 |
60,194,329.47 |
41,043,373.14 |
|
Selling Expenses |
1,008,991.40 |
780,728.01 |
1,473,088.14 |
|
Administrative Expenses |
4,555,470.27 |
4,180,809.15 |
3,267,887.31 |
|
Total Expenses |
71,548,080.15 |
65,155,866.63 |
45,784,348.59 |
|
Profit / [Loss] before
Financial Cost & Income Tax |
2,405,450.66 |
1,683,311.73 |
2,267,887.97 |
|
Financial Cost |
[5,840.00] |
- |
- |
|
Profit / [Loss] before Income Tax |
2,399,610.66 |
1,683,311.73 |
2,267,887.97 |
|
Income Tax |
[563,184.44] |
[555,607.99] |
[475,464.96] |
|
Net Profit / [Loss] |
1,836,426.22 |
1,127,703.74 |
1,792,423.01 |
|
Retained Earning, beginning
of year |
3,146,759.11 |
2,019,055.37 |
226,632.36 |
|
Retained Earning, end
of year |
4,983,185.33 |
3,146,759.11 |
2,019,055.37 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.17 |
1.30 |
1.27 |
|
QUICK RATIO |
TIMES |
0.46 |
0.86 |
1.07 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
63.19 |
1,596.95 |
2,283.78 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.73 |
1.18 |
1.67 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
330.81 |
117.43 |
38.81 |
|
INVENTORY TURNOVER |
TIMES |
1.10 |
3.11 |
9.40 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
190.27 |
200.56 |
174.35 |
|
RECEIVABLES TURNOVER |
TIMES |
1.92 |
1.82 |
2.09 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
461.51 |
262.01 |
178.66 |
|
CASH CONVERSION CYCLE |
DAYS |
59.57 |
55.98 |
34.51 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
90.76 |
90.06 |
88.59 |
|
SELLING & ADMINISTRATION |
% |
7.65 |
7.42 |
10.23 |
|
INTEREST |
% |
0.01 |
- |
- |
|
GROSS PROFIT MARGIN |
% |
10.96 |
9.94 |
15.13 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.31 |
2.52 |
4.90 |
|
NET PROFIT MARGIN |
% |
2.53 |
1.69 |
3.87 |
|
RETURN ON EQUITY |
% |
14.14 |
10.12 |
29.78 |
|
RETURN ON ASSET |
% |
1.85 |
1.98 |
6.46 |
|
EARNING PER SHARE |
BAHT |
22.96 |
14.10 |
44.81 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.87 |
0.80 |
0.78 |
|
DEBT TO EQUITY RATIO |
TIMES |
6.65 |
4.10 |
3.61 |
|
TIME INTEREST EARNED |
TIMES |
411.89 |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
8.78 |
44.27 |
|
|
OPERATING PROFIT |
% |
42.90 |
(25.78) |
|
|
NET PROFIT |
% |
62.85 |
(37.08) |
|
|
FIXED ASSETS |
% |
2,649.00 |
106.32 |
|
|
TOTAL ASSETS |
% |
74.73 |
104.67 |
|
ANNUAL GROWTH : EXCELLENT
An annual sales growth is 8.78%. Turnover has increased from THB
66,838,774.11 in 2011 to THB 72,704,037.13 in 2012. While net profit has
increased from THB 1,127,703.74 in 2011 to THB 1,836,426.22 in 2012. And total
assets has increased from THB 56,811,557.49 in 2011 to THB 99,266,893.59 in
2012.
PROFITABILITY : EXCELLENT
PROFITABILITY RATIO
|
Gross Profit Margin |
10.96 |
Impressive |
Industrial Average |
0.61 |
|
Net Profit Margin |
2.53 |
Impressive |
Industrial Average |
0.03 |
|
Return on Assets |
1.85 |
Impressive |
Industrial Average |
0.89 |
|
Return on Equity |
14.14 |
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. Gross Profit Margin is 10.96%. 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. Net Profit Margin ratio is 2.53%,
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 high ratio is
1.85%, 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 14.14%, 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.
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 |
1.17 |
Satisfactory |
Industrial
Average |
1.32 |
|
Quick Ratio |
0.46 |
|
|
|
|
Cash Conversion Cycle |
59.57 |
|
|
|
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 1.17 times in 2012, decrease from 1.3 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 0.46 times in 2012,
decrease from 0.86 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 60 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.87 |
Acceptable |
Industrial
Average |
0.77 |
|
Debt to Equity Ratio |
6.65 |
Risky |
Industrial
Average |
3.43 |
|
Times Interest Earned |
411.89 |
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 411.9 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 0.87 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 |
63.19 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.73 |
Deteriorated |
Industrial
Average |
34.63 |
|
Inventory Conversion Period |
330.81 |
|
|
|
|
Inventory Turnover |
1.10 |
Deteriorated |
Industrial
Average |
89.31 |
|
Receivables Conversion Period |
190.27 |
|
|
|
|
Receivables Turnover |
1.92 |
Deteriorated |
Industrial
Average |
44.32 |
|
Payables Conversion Period |
461.51 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.92 and 1.82 in
2012 and 2011 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate revenue. 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 2012
increased from 2011. 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 increased from 117 days at the
end of 2011 to 331 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 3.11 times in year 2011 to 1.1 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.73 times and 1.18
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
|
Key Areas |
Score |
Weight |
Weighted
Score |
|
LIQUIDITY RATIO |
1.78 |
25.00 |
44.50 |
|
ACTIVITY RATIO |
1.00 |
20.00 |
20.00 |
|
PROFITABILITY
RATIO |
4.00 |
25.00 |
100.00 |
|
LEVERAGE RATIO |
1.78 |
10.00 |
17.80 |
|
ANNUAL GROWTH |
4.00 |
20.00 |
80.00 |
|
Total Weight
(excluding - - Score) |
|
100.00 |
|
|
|
|
|
262.30 |
4 - EXCELLENT
3 - IMPRESSIVE
2 - SATISFACTORY
1 - ACCEPTABLE
0 - RISKY
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 58.74 |
|
|
1 |
Rs. 98.77 |
|
Euro |
1 |
Rs. 80.52 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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 |
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.