MIRA
INFORM REPORT
|
Report Date : |
28.05.2014 |
IDENTIFICATION DETAILS
|
Correct Name : |
SHUBHAM INTERNATIONAL CO., LTD. |
|
|
|
|
Registered Office : |
21st Flr., Jewelry
Trade Center, 919/270 Silom
Rd., Silom, Bangrak,
Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
20.08.1998 |
|
|
|
|
Com. Reg. No.: |
0105541051958 [Former :
772/2541] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Engaged in importing, distributing and re-exporting various
kinds of diamond,
pearl, gemstones and
jewelry products, as
well as exporting
of the local
jewelry products. |
|
|
|
|
No of Employees : |
03 |
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 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 |
|
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
SHUBHAM INTERNATIONAL
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 21st FLOOR, JEWELRY
TRADE CENTER,
919/270 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2268-1512-3
FAX :
[66] 2630-3354
E-MAIL
ADDRESS : shubham_bkk@yahoo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1998
REGISTRATION
NO. : 0105541051958 [Former : 772/2541]
CAPITAL REGISTERED : BHT. 16,000,000
CAPITAL PAID-UP : BHT.
16,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
BHUPENDRA KUMAR, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 3
LINES
OF BUSINESS : DIAMONDS AND GEMSTONES
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on August 20,
1998 as a
private limited company
under the name
style SHUBHAM INTERNATIONAL
CO., LTD., by Indian
groups, in order
to distribute diamonds and gemstones to
jewelry industry. It
currently employs 3
staff.
The subject’s registered address was initially
at Room 406, 4th
Flr., 297 Wanglee
Building, Surawongse Rd.,
Suriyawongse, Bangrak, Bangkok
10500.
In
October 2006, it was
relocated to 21st Flr.,
Jewelry Trade Center, 919/270
Silom Rd., Silom,
Bangrak, Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Abhishek Lalwani |
|
Indian |
34 |
|
Mr. Bhupendra Kumar |
|
Indian |
47 |
AUTHORIZED PERSON
One of the
above directors can sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Bhupendra Kumar
is the Managing
Director.
He is Indian
nationality with the
age of 47
years old.
Mr. Abhishek Lalwani
is the Assistant
Managing Director.
He is Indian
nationality with the
age of 34 years
old.
BUSINESS OPERATIONS
The subject is engaged
in importing, distributing
and re-exporting various
kinds of diamond,
pearl, gemstones and
jewelry products, as
well as exporting
of the local
jewelry products.
PURCHASE
The
products are purchased
from suppliers both
domestic and overseas,
mainly in
India,
Pakistan and South
Africa.
SALES
100%
of diamond, pearl
and gemstones are sold locally
to traders and
manufacturers.
EXPORT
The
products are exported and re-exported
to traders in
India, Republic of
China,
Hong Kong
and the countries
in Europe.
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
credit term of
30-60 days.
Local
bills are paid
by cash or on the
credit term of
30-60 days.
Imports
are by L/C
at sight or
T/T.
Exports
are against T/T.
BANKING
Kasikornbank
Public Co., Ltd.
[Silom Branch : Silom Rd.,
Silom, Bangrak, Bangkok
10500]
EMPLOYMENT
The
subject currently employs
3 staff [office and
sales 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’s sales in
2012 was extremely
dropped comparing to
the previous year.
The recent crisis in
Thailand both economic downturn
and shrinking consumer
spending have a strong
impact on the
subject’s business operation
this year.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht.
4,000,000 divided into
40,000 shares of
Bht. 100 each.
On
December 16, 2002, the
capital was increased to Bht. 16,000,000 divided into 160,000
shares of Bht.
100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
July 31, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Jeerawat Luanwanich Nationality: Thai Address : 76/67
Limklongbangkor Rd., Bangkor, Jomthong, Bangkok |
40,800 |
25.50 |
|
Mr. Veeraphan Saelam Nationality: Thai Address : 381
Soi Somdejphachaotaksin 23,
Samreh, Thonburi, Bangkok |
40,800 |
25.50 |
|
Mr. Bhupendra Kumar Nationality: Indian Address :
919/270 Silom Rd.,
Silom, Bangrak, Bangkok |
38,000 |
23.75 |
|
Mr. Abhishek Lalwani Nationality: Indian Address : 919/270
Silom Rd., Silom,
Bangrak, Bangkok |
30,000 |
18.75 |
|
Mrs. Zema Nationality: Indian Address : 919/270
Silom Rd., Silom,
Bangrak, Bangkok |
10,400 |
6.50 |
Total Shareholders : 5
Share Structure [as
at July 31,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
81,600 |
51.00 |
|
Foreign - Indian |
3 |
78,400 |
49.00 |
|
Total |
5 |
160,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Vasana Tanmongkol No.
1888
BALANCE SHEET [BAHT]
The latest
financial figures published as at December
31, 2012, 2011 &
2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
86,744.15 |
91,575.16 |
60,925.49 |
|
Trade Accounts Receivable
|
111,547,143.03 |
105,134,109.48 |
90,504,721.32 |
|
Inventories |
121,895,510.95 |
82,621,231.65 |
97,759,831.19 |
|
Other Current Assets
|
101,900.37 |
173,629.60 |
57,194.21 |
|
|
|
|
|
|
Total Current Assets
|
233,631,298.50 |
188,020,545.89 |
188,382,672.21 |
|
Fixed Assets |
3,497,797.80 |
3,776,809.77 |
4,146,391.39 |
|
Other Non-current Assets |
6,000.00 |
6,000.00 |
6,000.00 |
|
Total Assets |
237,135,096.30 |
191,803,355.66 |
192,535,063.60 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft |
961,265.07 |
885,300.47 |
1,189,531.43 |
|
Trade Accounts Payable
|
180,931,737.63 |
138,361,569.69 |
137,498,577.40 |
|
Other Current Liabilities |
173,772.14 |
241,262.60 |
141,037.70 |
|
|
|
|
|
|
Total Current Liabilities |
182,066,774.84 |
139,488,132.76 |
138,829,146.53 |
|
|
|
|
|
|
Loan Payable - Director |
33,177,000.00 |
29,577,000.00 |
30,462,000.00 |
|
Loan
Payable - Financial Institutions |
1,849,208.30 |
2,920,903.72 |
4,089,242.14 |
|
Total Liabilities |
217,092,983.14 |
171,986,036.48 |
173,380,388.67 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 160,000 shares |
16,000,000.00 |
16,000,000.00 |
16,000,000.00 |
|
|
|
|
|
|
Capital Paid |
16,000,000.00 |
16,000,000.00 |
16,000,000.00 |
|
Retained Earning - Unappropriated |
4,042,113.16 |
3,817,319.18 |
3,154,674.93 |
|
Total Shareholders' Equity |
20,042,113.16 |
19,817,319.18 |
19,154,674.93 |
|
Total Liabilities & Shareholders' Equity |
237,135,096.30 |
191,803,355.66 |
192,535,063.60 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
51,524,041.67 |
106,636,921.88 |
68,825,112.40 |
|
Other Income |
2,011,526.82 |
303,314.11 |
2,847,466.51 |
|
Total Revenues |
53,535,568.49 |
106,940,235.99 |
71,672,578.91 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
48,672,649.48 |
102,381,812.42 |
67,540,016.83 |
|
Selling Expenses |
1,031,650.97 |
1,026,554.42 |
542,110.01 |
|
Administrative Expenses |
3,070,797.26 |
2,244,399.25 |
2,704,394.98 |
|
Total Expenses |
52,775,097.71 |
105,652,766.09 |
70,786,521.82 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
760,470.78 |
1,287,469.90 |
886,057.09 |
|
Financial Costs |
[258,760.99] |
[320,530.52] |
[189,139.46] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax |
501,709.79 |
966,939.38 |
696,917.63 |
|
Income Tax |
[276,915.81] |
[304,295.03] |
[226,591.94] |
|
|
|
|
|
|
Net Profit / [Loss] |
224,793.98 |
662,644.25 |
470,325.69 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.28 |
1.35 |
1.36 |
|
QUICK RATIO |
TIMES |
0.61 |
0.75 |
0.65 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
14.73 |
28.23 |
16.60 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.22 |
0.56 |
0.36 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
914.10 |
294.55 |
528.31 |
|
INVENTORY TURNOVER |
TIMES |
0.40 |
1.24 |
0.69 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
790.21 |
359.86 |
479.97 |
|
RECEIVABLES TURNOVER |
TIMES |
0.46 |
1.01 |
0.76 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
1,356.82 |
493.27 |
743.07 |
|
CASH CONVERSION CYCLE |
DAYS |
347.49 |
161.14 |
265.22 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
94.47 |
96.01 |
98.13 |
|
SELLING & ADMINISTRATION |
% |
7.96 |
3.07 |
4.72 |
|
INTEREST |
% |
0.50 |
0.30 |
0.27 |
|
GROSS PROFIT MARGIN |
% |
9.44 |
4.27 |
6.00 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.48 |
1.21 |
1.29 |
|
NET PROFIT MARGIN |
% |
0.44 |
0.62 |
0.68 |
|
RETURN ON EQUITY |
% |
1.12 |
3.34 |
2.46 |
|
RETURN ON ASSET |
% |
0.09 |
0.35 |
0.24 |
|
EARNING PER SHARE |
BAHT |
1.40 |
4.14 |
2.94 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.92 |
0.90 |
0.90 |
|
DEBT TO EQUITY RATIO |
TIMES |
10.83 |
8.68 |
9.05 |
|
TIME INTEREST EARNED |
TIMES |
2.94 |
4.02 |
4.68 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(51.68) |
54.94 |
|
|
OPERATING PROFIT |
% |
(40.93) |
45.30 |
|
|
NET PROFIT |
% |
(66.08) |
40.89 |
|
|
FIXED ASSETS |
% |
(7.39) |
(8.91) |
|
|
TOTAL ASSETS |
% |
23.63 |
(0.38) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -51.68%. Turnover has decreased from THB
106,636,921.88 in 2011 to THB 51,524,041.67 in 2012. While net profit has
decreased from THB 662,644.25 in 2011 to THB 224,793.98 in 2012. And total
assets has increased from THB 191,803,355.66 in 2011 to THB 237,135,096.30 in
2012.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
9.44 |
Satisfactory |
Industrial Average |
10.08 |
|
Net Profit Margin |
0.44 |
Impressive |
Industrial Average |
0.43 |
|
Return on Assets |
0.09 |
Deteriorated |
Industrial Average |
2.89 |
|
Return on Equity |
1.12 |
Deteriorated |
Industrial Average |
8.18 |
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 9.44%. 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 0.44%, 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. When compared with the
industry average, it was lower, the
company's figure is 0.09%.
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 1.12%.
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 |
1.28 |
Acceptable |
Industrial Average |
2.20 |
|
Quick Ratio |
0.61 |
|
|
|
|
Cash Conversion Cycle |
347.49 |
|
|
|
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 1.28 times in 2012, decreased 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 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 0.61 times in 2012,
decreased from 0.75 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 348 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.92 |
Acceptable |
Industrial Average |
0.64 |
|
Debt to Equity Ratio |
10.83 |
Risky |
Industrial Average |
1.79 |
|
Times Interest Earned |
2.94 |
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 2.94 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 0.92 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 |
14.73 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.22 |
Deteriorated |
Industrial Average |
6.65 |
|
Inventory Conversion Period |
914.10 |
|
|
|
|
Inventory Turnover |
0.40 |
Deteriorated |
Industrial Average |
10.80 |
|
Receivables Conversion Period |
790.21 |
|
|
|
|
Receivables Turnover |
0.46 |
Deteriorated |
Industrial Average |
15.99 |
|
Payables Conversion Period |
1,356.82 |
|
|
|
The company's Account Receivable Ratio is calculated as 0.46 and 1.01 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
decreased from 2011. This would suggest the company had deteriorated 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 295 days at the
end of 2011 to 914 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 1.24 times in year 2011 to 0.4 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.22 times and 0.56
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.59.06 |
|
UK Pound |
1 |
Rs.99.61 |
|
Euro |
1 |
Rs.88.60 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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.