MIRA INFORM REPORT
|
Report Date : |
05.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
PACIFIC LUXURY [THAILAND]
LIMITED |
|
|
|
|
Registered Office : |
Unit 701, 7th Floor, Gemopolis Industrial Estate,
64/46 Soi Sukhapiban
2 [SOI 31], Dokmai, Praves,
Bangkok 10250 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
11.06.2010 |
|
|
|
|
Com. Reg. No.: |
0105553070308 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Subject is
engaged in manufacturing and exporting various
designs of jewelry
products such as
rings, earrings, bracelet,
necklace, pendant. |
|
|
|
|
No of Employees : |
34 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow |
|
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
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
PACIFIC LUXURY
[THAILAND] LIMITED
SUMMARY
BUSINESS
ADDRESS : UNIT 701, 7th FLOOR, GEMOPOLIS INDUSTRIAL ESTATE,
64/46 SOI
SUKHAPIBAN 2 [SOI
31],
DOKMAI, PRAVES,
BANGKOK 10250, THAILAND
TELEPHONE : [66] 2727-0640-1
FAX :
[66] 2727-0642
E-MAIL
ADDRESS : nilesh@pacificluxury.cn
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2010
REGISTRATION
NO. : 0105553070308
TAX
ID NO. : 3033960082
CAPITAL REGISTERED : BHT. 8,000,000
CAPITAL PAID-UP : BHT.
8,000,000
SHAREHOLDER’S PROPORTION : THAI :
52.00%
INDIAN : 48.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
KUNAL HARISH MEHTA,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 34
LINES
OF BUSINESS : JEWELRY PRODUCTS
MANUFACTURER, IMPORTER
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 June 11,
2010 as a
private limited company
under the registered
name PACIFIC LUXURY
[THAILAND] LIMITED by
Indian groups, with the
business objective to
manufacture various kinds
of jewelry products
for exports.
In
December 2013, the subject becomes
a joint venture
between Thai and Indian groups. It currently
employs 34 staff.
The
subject’s registered address
is Unit 701, 7th
Flr., Gemopolis Industrial
Estate, 64/46 Soi Sukhapiban 2 [Soi 31], Dokmai, Praves,
Bangkok 10250, and this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kunal Harish Mehta |
|
Indian |
33 |
|
Mr. Hiren Suryakantbhai Joshi |
|
Indian |
28 |
|
Ms. Siriporn Poonpuang |
|
Thai |
32 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Kunal Harish Mehta is
the Managing Director.
He is Indian
nationality with the
age of 33
years old.
Mr. Nilesh Sagye
is the General
Manager.
He is Indian
nationality.
Ms. Anita Abrol is
the Chief Operation
Officer.
She is Indian
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
and exporting various designs
of jewelry products
such as rings,
earrings, bracelet, necklace,
pendant.
PURCHASE
Most
of diamonds and
gemstones for production
are imported from
India, Pakistan, Hong
Kong and Republic
of China, the
remaining is purchased
from local suppliers.
EXPORT
100% of the
products is exported
to India, Hong
Kong, Japan, U.S.A.,
and European countries.
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 the past
two years.
CREDIT
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.
The
Siam Commercial Bank
Public Co., Ltd.
EMPLOYMENT
The
subject currently employs 34
staff.
LOCATION DETAILS
The premise is rented for
administrative office, factory and warehouse at the
heading address. Premise is
located in jewelry
industrial area.
Branches:
- 11th Floor,
Room No. E1, Surawong
Watthanakarn Building, 322/16
Surawong Road,
Sipraya, Bangrak, Bangkok
10500.
-
Surawong Watthanakarn Building,
322/20-21 Surawong Road,
Sipraya, Bangrak,
Bangkok 10500.
COMMENT
Subject
is a manufacturer
and exporter of
jewelry products. The
products are produced
with diamond, gemstone, semi-precious stone, 18 K gold and
platinum. Sales have increased
accordingly to new
markets expansion both
domestic and overseas
in the year
2013.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 4,000,000 divided
into 40,000 shares
of Bht. 100 each with
fully paid.
The
capital was increased
later as follows:
Bht. 6,000,000
on May 28,
2013
Bht. 8,000,000
on December 13,
2013
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 July 16,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Songchai Chuaysatit Nationality: Thai Address : 92/438
Moo 2, Klongkum, Buengkum, Bangkok |
41,600 |
52.00 |
|
Mr. Kunal Harish Mehta Nationality: Indian Address : 64/46
Soi Sukhapibal 2 [Soi 31],
Dokmai, Praves,
Bangkok |
38,000 |
47.50 |
|
Mr. Hiren Suryakantbhai Joshi Nationality: Indian Address : 64/46
Soi Sukhapibal 2
[Soi 31], Dokmai,
Praves, Bangkok |
400 |
0.50 |
Total Shareholders : 3
Share Structure [as
at July 16,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
41,600 |
52.00 |
|
Foreign – Indian |
2 |
38,400 |
48.00 |
|
Total |
3 |
80,000 |
100.00 |
NAME
OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO
Mr. Manus Wangthamnoon No.
3134
BALANCE
SHEET [BAHT]
The
latest financial figures
published for December 31,
2013, 2012 &
2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
494,444.79 |
274,899.71 |
190,127.93 |
|
Trade Accounts & Other Receivable |
149,765,616.60 |
45,463,111.15 |
46,938,426.17 |
|
Short-term Loans |
4,731,000.00 |
675,000.00 |
- |
|
Inventories |
84,182,588.32 |
39,477,600.62 |
6,395,478.21 |
|
Other Current Assets
|
304,578.95 |
231,741.05 |
237,337.50 |
|
|
|
|
|
|
Total Current Assets
|
239,478,228.66 |
86,122,352.53 |
53,761,369.81 |
|
|
|
|
|
|
Fixed Assets |
8,482,951.76 |
9,332,058.63 |
10,065,279.81 |
|
Other Non-current Assets |
168,317.00 |
108,317.00 |
47,200.00 |
|
Total Assets |
248,129,497.42 |
95,562,728.16 |
63,873,849.62 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts &
Other Payable |
246,578,486.44 |
95,000,372.49 |
61,853,990.98 |
|
Current Portion of Long-term
Liabilities -
Installment |
- |
- |
1,166,769.28 |
|
Short-term Loans |
4,200,191.89 |
619,553.00 |
- |
|
Other Current Liabilities |
589,824.59 |
673,394.10 |
137,285.96 |
|
|
|
|
|
|
Total Current Liabilities |
251,368,502.92 |
96,293,319.59 |
63,158,046.22 |
|
Total Liabilities |
251,368,502.92 |
96,293,319.59 |
63,158,046.22 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share capital
80,000 shares in 2013; 40,000 shares
in 2012 & 2011 |
8,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
|
|
|
|
|
Capital Paid |
8,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning -
Unappropriated |
[11,239,005.50] |
[4,730,591.43] |
[3,284,196.60] |
|
Total Shareholders' Equity
|
[3,239,005.50] |
[730,591.43] |
715,803.40 |
|
Total Liabilities &
Shareholders' Equity |
248,129,497.42 |
95,562,728.16 |
63,873,849.62 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
171,478,158.78 |
72,587,713.98 |
132,929,359.91 |
|
Other Income |
382.16 |
1,476,428.91 |
471,565.83 |
|
Total Revenues |
171,478,540.94 |
74,064,142.89 |
133,400,925.74 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
162,768,160.22 |
72,307,677.48 |
132,851,421.78 |
|
Selling Expenses |
272,620.09 |
203,305.61 |
327,001.31 |
|
Administrative Expenses |
7,306,509.52 |
2,831,624.13 |
2,431,898.67 |
|
Other Expenses |
7,430,802.26 |
- |
- |
|
Total Expenses |
177,778,092.09 |
75,342,607.22 |
135,610,321.76 |
|
|
|
|
|
|
Profit/Loss] before Financial Cost |
[6,299,551.15] |
[1,278,464.33] |
[2,209,396.02] |
|
Financial Cost |
[208,862.92] |
[167,930.50] |
[303,185.61] |
|
Net Profit / [Loss] |
[6,508,414.07] |
[1,446,394.83] |
[2,512,581.63] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.95 |
0.89 |
0.85 |
|
QUICK RATIO |
TIMES |
0.62 |
0.48 |
0.75 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
20.21 |
7.78 |
13.21 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.69 |
0.76 |
2.08 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
188.78 |
199.28 |
17.57 |
|
INVENTORY TURNOVER |
TIMES |
1.93 |
1.83 |
20.77 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
318.78 |
228.61 |
128.88 |
|
RECEIVABLES TURNOVER |
TIMES |
1.14 |
1.60 |
2.83 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
552.94 |
479.55 |
169.94 |
|
CASH CONVERSION CYCLE |
DAYS |
(45.38) |
(51.67) |
(23.48) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
94.92 |
99.61 |
99.94 |
|
SELLING & ADMINISTRATION |
% |
4.42 |
4.18 |
2.08 |
|
INTEREST |
% |
0.12 |
0.23 |
0.23 |
|
GROSS PROFIT MARGIN |
% |
5.08 |
2.42 |
0.41 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(3.67) |
(1.76) |
(1.66) |
|
NET PROFIT MARGIN |
% |
(3.80) |
(1.99) |
(1.89) |
|
RETURN ON EQUITY |
% |
- |
- |
(351.02) |
|
RETURN ON ASSET |
% |
(2.62) |
(1.51) |
(3.93) |
|
EARNING PER SHARE |
BAHT |
(81.36) |
(36.16) |
(62.81) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
1.01 |
1.01 |
0.99 |
|
DEBT TO EQUITY RATIO |
TIMES |
(77.61) |
(131.80) |
88.23 |
|
TIME INTEREST EARNED |
TIMES |
(30.16) |
(7.61) |
(7.29) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
136.24 |
(45.39) |
|
|
OPERATING PROFIT |
% |
392.74 |
(42.14) |
|
|
NET PROFIT |
% |
(349.97) |
42.43 |
|
|
FIXED ASSETS |
% |
(9.10) |
(7.28) |
|
|
TOTAL ASSETS |
% |
159.65 |
49.61 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 136.24%. Turnover has increased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
5.08 |
Deteriorated |
Industrial
Average |
18.48 |
|
Net Profit Margin |
(3.80) |
Deteriorated |
Industrial
Average |
16.43 |
|
Return on Assets |
(2.62) |
Deteriorated |
Industrial
Average |
24.52 |
|
Return on Equity |
- |
|
Industrial
Average |
40.35 |
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 5.08%. 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 -3.8%.
When compared with the industry average, the ratio of the company was lower.
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 -2.62%.
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 |
0.95 |
Risky |
Industrial
Average |
3.14 |
|
Quick Ratio |
0.62 |
|
|
|
|
Cash Conversion Cycle |
(45.38) |
|
|
|
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 0.95 times in 2013, increased from 0.89 times, then the company may have
problems meeting its short-term obligations. 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 0.62 times in 2013,
increased from 0.48 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 -46 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
1.01 |
Risky |
Industrial Average |
0.32 |
|
Debt to Equity Ratio |
(77.61) |
Risky |
Industrial Average |
0.47 |
|
Times Interest Earned |
(30.16) |
Risky |
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 -30.17 lower than 1, so the company is not generating
enough cash from EBIT to meet its
interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 1.01 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 Downtrend
Times Interest Earned Stable
ACTIVITY :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
20.21 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.69 |
Deteriorated |
Industrial Average |
1.49 |
|
Inventory Conversion Period |
188.78 |
|
|
|
|
Inventory Turnover |
1.93 |
Acceptable |
Industrial Average |
3.43 |
|
Receivables Conversion Period |
318.78 |
|
|
|
|
Receivables Turnover |
1.14 |
Acceptable |
Industrial Average |
2.25 |
|
Payables Conversion Period |
552.94 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.14 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 199 days at the
end of 2012 to 189 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 1.83 times in year 2012 to 1.93 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.69 times and 0.76
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 Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
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.61.41 |
|
|
1 |
Rs.98.06 |
|
Euro |
1 |
Rs.76.67 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SMN |
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.