MIRA INFORM REPORT
|
Report Date : |
21.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
FREETEX ELASTIC FABRIC FACTORY CO., LTD. |
|
|
|
|
Registered Office : |
622 Ladya Road, Klongsan, Bangkok 10600 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
12.04.1983 |
|
|
|
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Com. Reg. No.: |
0105526014672 |
|
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|
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Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor and Exporter of Innerwear Materials and Accessories. |
|
|
|
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No. of Employees : |
320 |
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 – 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 |
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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
FREETEX ELASTIC
FABRIC FACTORY CO., LTD.
SUMMARY
BUSINESS ADDRESS : 622 LADYA ROAD, KLONGSAN,
BANGKOK 10600, THAILAND
TELEPHONE : [66] 2438-8079-80, 2437-9072, 2437-7064
FAX : [66] 2439-0604
E-MAIL ADDRESS : info@freetexelastic.com
REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS
ESTABLISHED : 1983
REGISTRATION NO. : 0105526014672 [Former: 1469/2526]
TAX ID NO. : 3101233049
CAPITAL REGISTERED : BHT. 240,000,000
CAPITAL PAID-UP : BHT. 240,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR. NARONG ORAWATTANASRIKUL, THAI
PRESIDENT AND MANAGING DIRECTOR
NO. OF STAFF : 320
LINES OF BUSINESS : INNERWEAR MATERIALS AND ACCESSORIES
MANUFACTURER, DISTRIBUTOR AND EXPORTER
CORPORATE
PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD WITH NORMAL BUSINESS ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH FAIR PERFORMANCE
HISTORY
The subject was established on April 12, 1983 as a private limited company under the registered name FREETEX ELASTIC FABRIC FACTORY CO., LTD., by Thai groups, with the business objective to manufacture and supply wide range of innerwear and swimwear materials and accessories to both domestic and international markets. It currently employs approximately 320 staff.
The subject’s registered address is 622 Ladya Rd., Klongsan, Bangkok 10600, and this is also the subject’s current business address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Narong Orawattanasrikul |
|
Thai |
68 |
|
Ms. Pasiree Orawattanasrikul |
|
Thai |
39 |
|
Mr. Sirichai Orawattanasrikul |
|
Thai |
38 |
|
Mr. Kritsupot Orawattanasrikul |
|
Thai |
32 |
|
Mr. Thanuphon Orawattanasrikul |
|
Thai |
32 |
|
Mrs. Kamolluck Orawattanasrikul |
|
Thai |
63 |
AUTHORIZED
PERSON
Any two of the above directors can jointly sign on behalf of the subject with company’s affixed.
MANAGEMENT
Mr. Narong Orawattanasrikul is the President and Managing Director.
He is Thai nationality with the age of 68 years old.
Ms. Pasiree Orawattanasrikul is the Sales & Marketing Manager.
She is Thai nationality with the age of 39 years old.
Mr. Sirichai Orawattanasrikul is the Organization Development Director.
He is Thai nationality with the age of 38 years old.
Mr. Kritsupot Orawattanasrikul is the Product Development Director.
He is Thai nationality with the age of 32 years old.
BUSINESS
OPERATIONS
The subject’s activities are manufacturer and supplier wide range of innerwear and swimwear materials and accessories, mainly elastic webbings, ribbons, hook and loop tapes. Range of the products are as follows:
Materials: all kinds of woven and knitted elastic tapes, V-tapes, shoulder straps, bra wire tube, jacquard elastics, elastic laces, anti-runback elastic, medical elastics and ribbons.
Accessories: bra hook & eye tapes, ready made shoulder straps, ultrasonic embossed, hook & eye tapes, bow, ultrasonic welding and etc.
Colorful elastic, and high quality ribbons in all the colors of the spectrum and in a variety of widths and textures as well as hooks, the materials which are primarily used in the production of underwear and other textiles.
MAJOR
BRAND
“FREETEX”
PURCHASE
80% of its raw materials and accessories are purchased from local suppliers, and the remaining 20% is imported from United Kingdom, Japan, Republic of China, India and Germany.
SALES
[LOCAL]
70% of its products is sold locally by wholesale to manufacturers and end-users.
EXPORT
[COUNTRY]
30% of the products is exported to the United States of America, France, Tunisia, United Kingdom, Germany, Italy, Japan, Hong Kong, Malaysia, Korea, Republic of China, India, Taiwan, Vietnam, Indonesia and Singapore.
MAJOR
CUSTOMERS
Sabina Public Company Limited : Thailand
Thai Wacoal Public Company Limited : Thailand
Triumph International [Thailand] Ltd. : Thailand
Jintana Intertrade Co., Ltd. : Thailand
Onono Inter Co., Ltd. : Thailand
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 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
Kasikornbank Public Co., Ltd. [Klongsan Branch]
Bangkok Bank Public Co., Ltd. [Klongsan Branch]
EMPLOYMENT
The subject employs approximately 320 staff. [office staff and factory workers]
LOCATION
DETAILS
The premise is owned for operating administrative office in a 3 storey building of 1 row shophouse at the heading address. Premise is located in residential/commercial area.
Factory and warehouse are located at 153 Moo 5, Rama 2 Rd., T. Thasai, A. Muang,
Samutsakorn 74000. Tel.: [66] 34 822-300-1, Fax: [66] 34 462-613.
Branch office is located at 944/34-5 Soi Ladya 18, Ladya Rd., Klongsan, Bangkok 10600.
COMMENT
The high quality materials for innerwear and swimwear which produced by the company are exported around the world including the United States of America, France and the United Kingdom, as well as neighboring countries such as Malaysia and Singapore. With long term experience more than three decades has enabled the subject convey its products to meet with industrial demand.
The subject has an outstanding products which remain in strong demand from both domestic and export markets.
FINANCIAL
INFORMATION
The capital was initially register at Bht. 1 million, divided into 100 shares of Bht. 10,000 each.
The capital was increased later as followings:
Bht. 3 million on July 1, 1985
Bht. 15 million on November 21, 1991
Bht. 50 million on December 19, 1995
Bht. 80 million on December 29, 1997
Bht. 95 million on June 9, 1999
Bht. 240 million on December 26, 2011
The latest registered capital was increased to Bht. 240 million, divided into 2,400,000 shares of Bht. 100 each with fully paid.
THE SHAREHOLDERS LISTED WERE: [as at April 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Narong Orawattanasrikul Nationality: Thai Address : 622 Ladya Rd., Klongsan, Bangkok |
720,000 |
30.00 |
|
Mrs. Kamolluck Orawattanasrikul Nationality: Thai Address : 622 Ladya Rd., Klongsan, Bangkok |
720,000 |
30.00 |
|
Ms. Pasiree Orawattanasrikul Nationality: Thai Address : 622 Ladya Rd., Klongsan, Bangkok |
240,000 |
10.00 |
|
Mr. Sirichai Orawattanasrikul Nationality: Thai Address : 622 Ladya Rd., Klongsan, Bangkok |
240,000 |
10.00 |
|
Mr. Kritsupot Orawattanasrikul Nationality: Thai Address : 622 Ladya Rd., Klongsan, Bangkok |
240,000 |
10.00 |
|
Mr. Thanuphon Orawattanasrikul Nationality: Thai Address : 622 Ladya Rd., Klongsan, Bangkok |
240,000 |
10.00 |
Total Shareholders
: 6
SHARE
STRUCTURE [AS AT
APRIL 30, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
2,400,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
6 |
2,400,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Paisal Sriboonyong No. 2969
BALANCE
SHEET [BAHT]
The latest financial figures published for December 31, 2013, 2012 & 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalent |
39,285,979.86 |
31,202,571.17 |
27,909,307.13 |
|
Trade Accounts & Other Receivable |
122,547,156.59 |
114,577,601.04 |
139,340,279.00 |
|
Inventories |
85,978,259.72 |
76,593,277.72 |
33,812,695.58 |
|
|
|
|
|
|
Total Current Assets |
247,811,396.17 |
222,373,449.93 |
201,063,281.71 |
|
|
|
|
|
|
Fixed Assets |
113,308,458.34 |
136,000,831.13 |
149,331,970.94 |
|
Other Non-current Assets |
5,600.00 |
5,600.00 |
9,100.00 |
|
Total Assets |
361,125,454.51 |
358,379,881.06 |
350,404,352.65 |
LIABILITIES & SHAREHOLDERS’
EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts & Other Payable |
51,794,989.95 |
54,261,099.98 |
49,589,583.99 |
|
Current Portion of Long-term Loans |
148,410.00 |
1,782,020.00 |
1,782,120.00 |
|
Current Portion of Financial Lease Contract Liabilities |
312,908.64 |
338,960.75 |
362,688.00 |
|
Accrued Income Tax |
811,004.19 |
585,300.67 |
1,336,754.87 |
|
|
|
|
|
|
Total Current Liabilities |
53,067,312.78 |
56,967,381.40 |
53,071,146.86 |
|
Long-term Loan from Person or Related Company |
- |
- |
1,782,020.00 |
|
Long-term Financial Lease Liabilities |
- |
269,290.57 |
504,064.25 |
|
Total Liabilities |
53,067,312.78 |
57,236,671.97 |
55,357,231.11 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100 par value authorized, issued and fully paid share capital 2,400,000 shares |
240,000,000.00 |
240,000,000.00 |
240,000,000.00 |
|
|
|
|
|
|
Capital Paid |
240,000,000.00 |
240,000,000.00 |
240,000,000.00 |
|
Retained Earning Unappropriated |
68,058,141.73 |
61,143,209.09 |
55,047,121.54 |
|
Total Shareholders' Equity |
308,058,141.73 |
301,143,209.09 |
295,047,121.54 |
|
Total Liabilities & Shareholders' Equity |
361,125,454.51 |
358,379,881.06 |
350,404,352.65 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
537,487,391.65 |
505,194,459.25 |
539,133,847.68 |
|
Other Income |
5,615,235.21 |
1,499,739.72 |
3,311,271.33 |
|
Total Revenues |
543,102,626.86 |
506,694,198.97 |
542,445,119.01 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods Sold |
487,508,203.45 |
452,745,213.56 |
487,850,545.82 |
|
Selling Expenses |
30,453,077.45 |
30,115,419.79 |
29,746,910.98 |
|
Administrative Expenses |
16,402,681.53 |
15,688,745.59 |
16,258,116.21 |
|
Total Expenses |
534,363,962.43 |
498,549,378.94 |
533,855,573.01 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income Tax |
8,738,664.43 |
8,144,820.03 |
8,589,546.00 |
|
Financial Cost |
[68,080.09] |
[188,079.45] |
[445,369.27] |
|
Profit / [Loss] before Income Tax |
8,670,584.34 |
7,956,740.58 |
8,144,176.73 |
|
Income Tax |
[1,755,651.70] |
[1,860,653.03] |
[2,522,404.31] |
|
|
|
|
|
|
Net Profit / [Loss] |
6,914,932.64 |
6,096,087.55 |
5,621,772.42 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
4.67 |
3.90 |
3.79 |
|
QUICK RATIO |
TIMES |
3.05 |
2.56 |
3.15 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.74 |
3.71 |
3.61 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.49 |
1.41 |
1.54 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
64.37 |
61.75 |
25.30 |
|
INVENTORY TURNOVER |
TIMES |
5.67 |
5.91 |
14.43 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
83.22 |
82.78 |
94.34 |
|
RECEIVABLES TURNOVER |
TIMES |
4.39 |
4.41 |
3.87 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
38.78 |
43.74 |
37.10 |
|
CASH CONVERSION CYCLE |
DAYS |
108.81 |
100.79 |
82.53 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
90.70 |
89.62 |
90.49 |
|
SELLING & ADMINISTRATION |
% |
8.72 |
9.07 |
8.53 |
|
INTEREST |
% |
0.01 |
0.04 |
0.08 |
|
GROSS PROFIT MARGIN |
% |
10.34 |
10.68 |
10.13 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.63 |
1.61 |
1.59 |
|
NET PROFIT MARGIN |
% |
1.29 |
1.21 |
1.04 |
|
RETURN ON EQUITY |
% |
2.24 |
2.02 |
1.91 |
|
RETURN ON ASSET |
% |
1.91 |
1.70 |
1.60 |
|
EARNING PER SHARE |
BAHT |
2.88 |
2.54 |
2.34 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.15 |
0.16 |
0.16 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.17 |
0.19 |
0.19 |
|
TIME INTEREST EARNED |
TIMES |
128.36 |
43.31 |
19.29 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
6.39 |
(6.30) |
|
|
OPERATING PROFIT |
% |
7.29 |
(5.18) |
|
|
NET PROFIT |
% |
13.43 |
8.44 |
|
|
FIXED ASSETS |
% |
(16.69) |
(8.93) |
|
|
TOTAL ASSETS |
% |
0.77 |
2.28 |
|
ANNUAL
GROWTH: IMPRESSIVE
An annual sales growth is 6.39%. Turnover has increased from
THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
10.34 |
Deteriorated |
Industrial Average |
74.99 |
|
Net Profit Margin |
1.29 |
Deteriorated |
Industrial Average |
6.83 |
|
Return on Assets |
1.91 |
Deteriorated |
Industrial Average |
10.69 |
|
Return on Equity |
2.24 |
Deteriorated |
Industrial Average |
21.18 |
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 10.34%. 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 1.29%. 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 1.91%.
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 2.24%.
Trend of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
4.67 |
Impressive |
Industrial Average |
1.50 |
|
Quick Ratio |
3.05 |
|
|
|
|
Cash Conversion Cycle |
108.81 |
|
|
|
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 4.67 times in 2013, increased from 3.9 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 3.05 times in 2013, increased from 2.56 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 109 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
‘
LEVERAGE RATIO
|
Debt Ratio |
0.15 |
Impressive |
Industrial Average |
0.44 |
|
Debt to Equity Ratio |
0.17 |
Impressive |
Industrial Average |
0.78 |
|
Times Interest Earned |
128.36 |
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 128.36 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 0.15 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 Downtrend
Times Interest Earned Stable
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.74 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.49 |
Satisfactory |
Industrial Average |
1.57 |
|
Inventory Conversion Period |
64.37 |
|
|
|
|
Inventory Turnover |
5.67 |
Satisfactory |
Industrial Average |
6.76 |
|
Receivables Conversion Period |
83.22 |
|
|
|
|
Receivables Turnover |
4.39 |
Satisfactory |
Industrial Average |
5.42 |
|
Payables Conversion Period |
38.78 |
|
|
|
The company's Account Receivable Ratio is calculated as
4.39 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 increased from 62 days at the end of 2012 to 64 days at the end of 2013. This represents a negative trend. And Inventory turnover has decreased from 5.91 times in year 2012 to 5.67 times in year 2013.
The company's Total Asset Turnover is calculated as 1.49 times and 1.41 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
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.10 |
|
|
1 |
Rs.97.32 |
|
Euro |
1 |
Rs.77.41 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
VNT |
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.