MIRA
INFORM REPORT
|
Report Date : |
28.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
WALKER EXHAUST [THAILAND] CO., LTD. |
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|
|
Registered Office : |
700/701-702, 700/757 Moo 1, Bangna-Trad Road, T. Panthong, A. Panthong, Chonburi 20160 |
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Country : |
Thailand |
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|
|
|
Financials (as on) : |
31.12.2012 |
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|
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Date of Incorporation : |
31.01.2001 |
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Com. Reg. No.: |
0105544010519 |
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Legal Form : |
Private Limited Company |
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|
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Line of Business : |
Subject is engaged in manufacturing and assembling of exhaust system to Original Equipped from Manufacturer |
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No of Employees : |
250 |
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 : |
Good |
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Payment Behaviour : |
Regular |
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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 – September 30, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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 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
WALKER EXHAUST
[THAILAND] CO., LTD.
SUMMARY
BUSINESS ADDRESS : 700/701-702, 700/757 MOO
1, BANGNA-TRAD ROAD,
T.
PANTHONG, A. PANTHONG,
CHONBURI 20160, THAILAND
TELEPHONE : [66] 38
447-500-9
FAX : [66] 38
447-465
E-MAIL ADDRESS : suphaninee@walker_thailand.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2001
REGISTRATION NO. : 0105544010519
TAX ID NO. : 3030274410
CAPITAL REGISTERED
: BHT.
80,000,000
CAPITAL PAID-UP
: BHT.
80,000,000
SHAREHOLDER’S PROPORTION : THAI :
100.00%
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
HARI NARAYAN NAIR,
AMERICAN
GENERAL MANAGER
NO. OF
STAFF : 250
LINES OF
BUSINESS : EXHAUST SYSTEM
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 January
31, 2001 as
a private limited
company under the
name style WALKER
EXHAUST [THAILAND] CO., LTD by Thai and American investors. It
was a joint-venture
between Tenneco Automotive
Inc., U.S.A., and
Yarnapund Co., Ltd.,
Thailand, with the
company ownership at 75% and 25% respectively, in order to
manufacture and distribute exhaust
system for vehicle production
in Thailand.
Tenneco Automobile is a global
manufacturing company based in Lake Forest, Illinois..
The company is one of the world largest designers, manufacturers and distributors of
automotive ride control
and emission control
products and systems for
the automotive original equipment market, or
aftermarket.
Tenneco Automobile forms
a joint venture with Yarnapund Co., Ltd., a Thai
exhaust system manufacturer, Walker
Exhaust Thailand Co., Ltd., to manufacture
and supply exhaust
systems for the Isuzu I190 light
pickup platform. Vehicle
production in Thailand has
begun in
2002. The joint
venture is responsible for final assembly of exhaust
systems, with parts manufactured
locally by Yarnapund and
imported from Tenneco. Yarnapund
and Tenneco already
produced exhaust systems for the Opel Zafira, produced in
Thailand.
On August 23, 2011,
the subject became
to be a wholly
owned subsidiary of
Teneco
Automotive [Thailand] Co.,
Ltd. It currently
employs 250 staff.
The subject’s registered address
was initially at 70
Moo 1, Bangna-Trad Road,
Rajathewa, A. Bangplee, Samutprakarn
10540.
On August 17,
2009, the subject’s
registered address was
relocated to 700/701-702, 700/757 Moo 1,
Bangna-Trad Road,
T. Panthong, A. Panthong, Chonburi
20160, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Bukoh Seng Hiang
Laurence |
|
Singaporean |
48 |
|
Mr. Hari Narayan Nair |
[x] |
American |
53 |
|
Mr. Theodore V Bonneu |
|
Belgian |
71 |
|
Ms. Kanokrat Voraming |
|
Thai |
37 |
AUTHORIZED PERSON
Only the mentioned
director [x] signs
or any two
of the rest
directors can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Hari
Narayan Nair is
the General Manager.
He is American
nationality with the
age of 53 years
old.
Mr. Songvuth
Pungithara is the
Factory Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s business
is engaged in
manufacturing and assembling
of exhaust system
to Original Equipped
from Manufacturer [OEM],
mainly for the
“ISUZU” light pickup
platform.
BRAND NAME
“WALKER”
PURCHASE
90% of the raw
materials are purchased
from local suppliers,
the remaining 10%
is imported from
Singapore, Taiwan, Republic
of China and
United States of
America.
MAJOR SUPPLIERS
Yarnapund Public Company
Limited : Thailand
Tenneco Automotive Inc. : U.S.A.
SERVICES
The products are
served to OEM
manufacturers both local
and overseas, mainly
in U.S.A., Japan,
Indonesia and countries
in Europe.
MAJOR CUSTOMERS
Isuzu Motors [Thailand]
Co., Ltd. : Thailand
Thairung Union Car
Public Company Limited : Thailand
Shonan Unitec [Thailand]
Co., Ltd. : Thailand
PARENT COMPANY
Tenneco Automotive
[Thailand] Co., Ltd.
Business Type: Manufacture
of automotive exhaust
systems
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
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank
Public Co., Ltd.
[Kingkaew Road-Sub
Branch : 68/19-22 Moo 5,
Kingkaew Road, T.
Rajathewa,
A. Bangplee,
Samutprakarn
City Bank
N.A.
[Bangkok Branch :
South Sathorn Road,
Tungmahamek, Sathorn, Bangkok]
EMPLOYMENT
The subject employs
approximately 250 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is owned
for administrative office
and factory at
the heading address.
Premise is located
in an industrial
area.
COMMENT
The country’s automobile industry is expected to continue growing due
to it is the Asian hub
of variety brands of
leading international automobile.
Growth of the industry reflected
to strong demand of parts and components.
This is a
good opportunity for the subject
in long term prospect.
FINANCIAL INFORMATION
The capital was
registered at Bht.
100,000 divided into
1,000 shares of
Bht. 100 each.
The capital was
increased later as
follows:
Bht. 40,000,000
on February 23,
2001
Bht. 80,000,000
on April 10,
2002
The latest registered
capital was increased
to Bht. 80,000,000
divided into 800,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Tenneco Automotive
[Thailand] Co., Ltd. Nationality: Thai Address : 700/758-759
Moo 1, T.
Panthong, A. Panthong,
Chonburi |
799,997 |
100.00 |
|
Mr. Philip Lesley
Mcmahon Nationality: Australian Address : 1326 South Road, Clovelly
Park,
S.A. 5042,
Australia |
1 |
- |
|
Mr. Hari
Narayan Nair Nationality: American Address : Brussels,
Belgium |
1 |
- |
|
Mr. Theodore
V. Bonneu Nationality: Belgian Address : Brussels,
Belgium |
1 |
- |
Total Shareholders
: 4
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
799,997 |
100.00 |
|
Foreign |
3 |
3 |
- |
|
Total |
4 |
800,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Mr. Sudwin Panyawongsanit No.
3534
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 |
118,161,543 |
91,808,996 |
76,260,191 |
|
Cash at Bank pledged as a Collateral |
- |
94,000 |
94,000 |
|
Trade Accounts & Other Receivable |
244,716,091 |
91,195,187 |
211,112,139 |
|
Inventories |
87,258,884 |
55,711,471 |
64,788,273 |
|
Value Added Tax |
- |
2,233,101 |
- |
|
Other Current Assets
|
875,986 |
6,265,983 |
6,958,195 |
|
|
|
|
|
|
Total Current Assets
|
451,012,504 |
247,308,738 |
359,212,798 |
|
|
|
|
|
|
Fixed Assets |
208,726,106 |
195,052,204 |
142,717,050 |
|
Intangible Assets |
8,146,832 |
9,162,753 |
6,586,398 |
|
Deposits |
8,047,704 |
8,057,704 |
6,544,304 |
|
Total Assets |
675,933,146 |
459,581,399 |
515,060,550 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts & Other Payable |
260,964,202 |
110,243,456 |
185,296,040 |
|
Value Added Tax |
46,250 |
- |
890,136 |
|
Accrued Income Tax |
188,443 |
271,347 |
3,788,935 |
|
Other Current Liabilities |
2,473,508 |
1,482,795 |
1,395,885 |
|
|
|
|
|
|
Total Current Liabilities |
263,672,403 |
111,997,598 |
191,370,996 |
|
|
|
|
|
|
Provision for
Decommissioning Assets |
6,471,790 |
6,471,790 |
- |
|
Provision for Employee Benefits |
7,670,892 |
4,959,202 |
- |
|
Total Liabilities |
277,815,085 |
123,428,590 |
191,370,996 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 800,000 shares |
80,000,000 |
80,000,000 |
80,000,000 |
|
|
|
|
|
|
Capital Paid |
80,000,000 |
80,000,000 |
80,000,000 |
|
Retained Earning Appropriated for Statutory
Reserve |
10,000,000 |
10,000,000 |
10,000,000 |
|
Unappropriated |
308,118,061 |
246,152,809 |
233,689,554 |
|
Total Shareholders' Equity |
398,118,061 |
336,152,809 |
323,689,554 |
|
Total Liabilities &
Shareholders' Equity |
675,933,146 |
459,581,399 |
515,060,550 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
939,176,154 |
833,090,299 |
993,529,539 |
|
Other Income |
10,012,409 |
8,462,728 |
16,498,295 |
|
Total Revenues |
949,188,563 |
841,553,027 |
1,010,027,834 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
779,397,719 |
730,154,064 |
776,669,473 |
|
Selling Expenses |
17,707,455 |
16,920,832 |
26,178,761 |
|
Administrative Expenses |
89,738,599 |
81,101,192 |
76,688,912 |
|
Other Expenses |
167,425 |
411,814 |
3,049,175 |
|
Total Expenses |
887,011,198 |
828,587,902 |
882,586,321 |
|
Profit before Income Tax |
62,177,36 |
12,965,125 |
127,441,513 |
|
Income Tax |
[212,113] |
[501,870] |
[4,566,916] |
|
Net Profit / [Loss] |
61,965,252 |
12,463,255 |
122,874,597 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.71 |
2.21 |
1.88 |
|
QUICK RATIO |
TIMES |
1.38 |
1.63 |
1.50 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.50 |
4.27 |
6.96 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.39 |
1.81 |
1.93 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
40.86 |
27.85 |
30.45 |
|
INVENTORY TURNOVER |
TIMES |
8.93 |
13.11 |
11.99 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
95.11 |
39.96 |
77.56 |
|
RECEIVABLES TURNOVER |
TIMES |
3.84 |
9.14 |
4.71 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
122.21 |
55.11 |
87.08 |
|
CASH CONVERSION CYCLE |
DAYS |
13.76 |
12.69 |
20.92 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
82.99 |
87.64 |
78.17 |
|
SELLING & ADMINISTRATION |
% |
11.44 |
11.77 |
10.35 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
18.08 |
13.37 |
23.49 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
6.62 |
1.56 |
12.83 |
|
NET PROFIT MARGIN |
% |
6.60 |
1.50 |
12.37 |
|
RETURN ON EQUITY |
% |
15.56 |
3.71 |
37.96 |
|
RETURN ON ASSET |
% |
9.17 |
2.71 |
23.86 |
|
EARNING PER SHARE |
BAHT |
77.46 |
15.58 |
153.59 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.41 |
0.27 |
0.37 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.70 |
0.37 |
0.59 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
12.73 |
(16.15) |
|
|
OPERATING PROFIT |
% |
379.57 |
(89.83) |
|
|
NET PROFIT |
% |
397.18 |
(89.86) |
|
|
FIXED ASSETS |
% |
7.01 |
36.67 |
|
|
TOTAL ASSETS |
% |
47.08 |
(10.77) |
|
ANNUAL GROWTH : EXCELLENT
An annual sales growth is 12.73%.
Turnover has increased from THB 833,090,299.00 in 2011 to THB 939,176,154.00 in
2012. While net profit has increased from THB 12,463,255.00 in 2011 to THB
61,965,252.00 in 2012. And total assets has increased from THB 459,581,399.00
in 2011 to THB 675,933,146.00 in 2012.
PROFITABILITY : IMPRESSIVE
PROFITABILITY RATIO
|
Gross Profit Margin |
18.08 |
Satisfactory |
Industrial Average |
21.41 |
|
Net Profit Margin |
6.60 |
Impressive |
Industrial Average |
6.40 |
|
Return on Assets |
9.17 |
Satisfactory |
Industrial Average |
10.46 |
|
Return on Equity |
15.56 |
Satisfactory |
Industrial Average |
19.69 |
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 18.08%. 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 6.6%, 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 9.17%.
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 15.56%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
1.71 |
Impressive |
Industrial Average |
1.49 |
|
Quick Ratio |
1.38 |
|
|
|
|
Cash Conversion Cycle |
13.76 |
|
|
|
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 1.71 times in 2012, decreased from 2.21 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 1.38 times in 2012,
decreased from 1.63 times, although excluding inventory so the company still
have good short-term financial strength.
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 14 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.41 |
Impressive |
Industrial Average |
0.49 |
|
Debt to Equity Ratio |
0.70 |
Impressive |
Industrial Average |
0.98 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.41 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 : IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.50 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.39 |
Satisfactory |
Industrial Average |
1.63 |
|
Inventory Conversion Period |
40.86 |
|
|
|
|
Inventory Turnover |
8.93 |
Impressive |
Industrial Average |
8.53 |
|
Receivables Conversion Period |
95.11 |
|
|
|
|
Receivables Turnover |
3.84 |
Acceptable |
Industrial Average |
5.63 |
|
Payables Conversion Period |
122.21 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.84 and 9.14 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 28 days at the
end of 2011 to 41 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 13.11 times in year 2011 to 8.93
times in year 2012.
The company's Total Asset Turnover is calculated as 1.39 times and 1.81
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 |
3.11 |
25.00 |
77.75 |
|
ACTIVITY RATIO |
3.00 |
20.00 |
60.00 |
|
PROFITABILITY
RATIO |
3.00 |
25.00 |
75.00 |
|
LEVERAGE RATIO |
4.00 |
10.00 |
40.00 |
|
ANNUAL GROWTH |
4.00 |
20.00 |
80.00 |
|
Total Weight
(excluding - - Score) |
|
100.00 |
|
|
|
|
|
332.75 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 59.05 |
|
|
1 |
Rs. 99.61 |
|
Euro |
1 |
Rs. 80.60 |
INFORMATION DETAILS
|
Analysis Done by
: |
KRN |
|
|
|
|
Report Prepared
by : |
DPT |
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.