MIRA INFORM REPORT
|
Report Date : |
16.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
STAR MICRONICS
[THAILAND] CO., LTD. |
|
|
|
|
Registered Office : |
289/23 MOO 13, SOI Kingkaew 25/1, Kingkaew Road, T. Rachathewa, A. Bangplee, Samutprakarn 10540 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
04.02.2005 |
|
|
|
|
Com. Reg. No.: |
0115548001522 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Engaged in importing
and distributing of
automatic lathe machines,
tools and spare
parts, as well
as providing installation and
maintenance services for
lathing and other
industries |
|
|
|
|
No. of Employees : |
15 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
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 – 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
STAR
MICRONICS [THAILAND] CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 289/23 MOO
13, SOI KINGKAEW
25/1,
KINGKAEW ROAD,
T. RACHATHEWA,
A. BANGPLEE, SAMUTPRAKARN
10540,
THAILAND
TELEPHONE : [66] 2186-8945-7
FAX :
[66] 2186-7845
E-MAIL
ADDRESS : bee_kanokwun@starthai.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2005
REGISTRATION
NO. : 0115548001522
TAX
ID NO. : 3031686632
CAPITAL REGISTERED : BHT. 6,000,000
CAPITAL PAID-UP : BHT.
6,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
JAPANESE :
49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
HIDENOBU NII, JAPANESE
MANAGING DIRECTOR
NO.
OF STAFF : 15
LINES
OF BUSINESS : INDUSTRIAL MACHINERY,
TOOLS AND
SPARE PARTS
IMPORTER AND
DISTRIBUTOR
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 February 4, 2005 as
a private limited
company under the
registered name STAR
MICRONICS [THAILAND] CO.,
LTD., by Thai and
Japanese groups, with
the business objective
to distribute machinery,
tools and spare
parts for industrial
users. It currently
employs 15 staff.
The
major shareholders are
Matsui Plant [Thailand]
Co., Ltd., and
Star Micronics Co.,
Ltd., with holding
around 49% and
43% of the subject’s shares
respectively.
The
subject’s registered address
was initially at 26/59
Moo 7, T. Rachathewa, A. Bangplee,
Samutprakarn 10540.
On
June 3, 2014,
the subject’s registered
address was relocated
to 289/23 Moo
13, Soi Kingkaew
25/1, Kingkaew Road,
T. Rachathewa, A. Bangplee, Samutprakarn
10540, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Hiroshi Tanaka |
|
Japanese |
59 |
|
Mr. Hidenobu Nii |
[x] |
Japanese |
48 |
|
Mr. Fumio Masuda |
|
Japanese |
50 |
AUTHORIZED PERSON
Only the mentioned
director [x] can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Hidenobu Nii is
the Managing Director.
He is Japanese
nationality with the
age of 48
years old.
BUSINESS
OPERATIONS
The subject
is engaged in
importing and distributing
of automatic lathe
machines, tools and
spare parts, as
well as providing
installation and maintenance
services for lathing
and other industries.
PURCHASE
80% of the
products is imported
from Japan, Republic
of China and
Taiwan, the remaining
20% is purchased
from local suppliers.
MAJOR
SUPPLIER
Star Micronics Co.,
Ltd. : Japan
SALES
100% of the
products is sold
and serviced locally
to manufacturers and
end-users.
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 for the
past two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of 30-60 days.
Imports are by
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
Mizuho
Corporate Bank
[Bangkok Branch, 48
North Sathorn Road,
Silom, Bangrak, Bangkok]
EMPLOYMENT
The
subject currently employs
15 staff.
LOCATION
DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in industrial area.
COMMENT
The
subject had strong
business performance in the
previous years. However,
economy slowdown in accordance with
slow domestic industrial
growth has caused
to decrease subject’s
sales, as well
as, the impact
of slow spending
and delay of industrial
expansion would pressure
subject’s performance this
year.
FINANCIAL
INFORMATION
The
capital was registered at
Bht. 4,000,000 divided into 40,000
shares of Bht. 100 each
with fully paid.
On
January 6, 2011,
the registered capital
was increased to
Bht. 6,000,000 divided
into 60,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at March
17, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Matsui Plant [Thailand]
Co., Ltd. Nationality: Thai Address : 26/59
Moo 7, Soi Kingkaew
62/2, Kingkaew Rd.,
T. Rachathewa, A.
Bangplee, Samutprakarn |
29,400 |
49.00 |
|
Star Micronics Co.,
Ltd. Nationality: Japanese Address : 1500-34, Kitanoya, Misawa,
Kikugawa, Shizuoka 439-0023, Japan |
25,800 |
43.00 |
|
Mr. Fumio Masuda Nationality: Japanese Address : 1500-34, Kitanoya, Misawa,
Kikugawa, Shizuoka 439-0023, Japan |
3,600 |
6.00 |
|
Ms. Kanya Khao-on Nationality: Thai Address :
99/277 Moo 1, Wadsrivareenoi Rd.,
T.
Seesajarakaenoi, A. Bangsaothong,
Samutprakarn |
1,200 |
2.00 |
Total Shareholders : 4
Share Structure [as
at March 17,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
30,600 |
51.00 |
|
Foreign - Japanese |
2 |
29,400 |
49.00 |
|
Total |
4 |
60,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Vachara Tamnukasetthai No.
5039
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 |
76,244,183.63 |
103,975,366.32 |
53,850,039.37 |
|
Trade Accounts Receivable |
49,703,234.40 |
63,647,039.84 |
132,336,067.92 |
|
Other Receivable |
416,384.16 |
101,911.07 |
- |
|
Inventories |
2,702,141.59 |
8,282,277.68 |
995,237.32 |
|
Deposits |
- |
- |
160,500.00 |
|
Other Current Assets
|
118,204.17 |
118,143.03 |
317,694.42 |
|
|
|
|
|
|
Total Current Assets
|
129,184,147.95 |
176,124,737.94 |
187,659,539.03 |
|
Investment in Subsidiaries |
1,020,000.00 |
1,020,000.00 |
1,020,000.00 |
|
Fixed Assets |
5,514,266.68 |
3,761,328.34 |
3,816,937.51 |
|
Intangible Assets |
80,092.81 |
70,132.09 |
86,075.09 |
|
Other Non-current Assets |
986,630.00 |
833,630.00 |
807,630.00 |
|
Total Assets |
136,785,137.44 |
181,809,828.37 |
193,390,181.63 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
16,210.00 |
- |
37,116.54 |
|
Trade Accounts Payable -Related company |
40,874,017.19 |
85,469,464.80 |
131,212,503.32 |
|
Current Portion of Liabilities
under Financial Lease
Agreements |
580,517.69 |
890,630.46 |
517,850.01 |
|
Accrued Expenses |
566,947.42 |
750,251.00 |
371,143.01 |
|
Other Payable |
161,018.30 |
122,896.00 |
173,628.80 |
|
Accrued Income Tax |
822,057.44 |
6,376,326.83 |
1,945,775.43 |
|
Other Current Liabilities |
280,666.75 |
1,344,968.85 |
864,863.82 |
|
|
|
|
|
|
Total Current Liabilities |
43,301,434.79 |
94,954,537.94 |
135,122,880.93 |
|
|
|
|
|
|
Liabilities under
Financial Lease Agreements, Net of
Current Portion |
94,070.31 |
674,588.00 |
771,255.85 |
|
Total Liabilities |
43,395,505.10 |
95,629,125.94 |
135,894,136.78 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 60,000 shares |
6,000,000.00 |
6,000,000.00 |
6,000,000.00 |
|
|
|
|
|
|
Capital Paid |
6,000,000.00 |
6,000,000.00 |
6,000,000.00 |
|
Retained Earning - Unappropriated [Deficit] |
87,389,632.34 |
80,180,702.43 |
51,496,044.85 |
|
Total Shareholders' Equity |
93,389,632.34 |
76,180,702.43 |
57,496,044.85 |
|
Total Liabilities &
Shareholders' Equity |
136,785,137.44 |
181,809,828.37 |
193,390,181.63 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
191,265,381.66 |
570,814,732.07 |
354,560,493.57 |
|
Service Income |
6,847,148.34 |
10,586,721.78 |
5,330,462.31 |
|
Gain on Exchange
Rate |
5,692,169.31 |
7,948,545.67 |
366,331.93 |
|
Gain on Disposal of
Assets |
102,996.00 |
356,652.97 |
568,530.13 |
|
Other Income |
356,326.13 |
59,512.83 |
40,948.97 |
|
Total Revenues |
204,264,021.44 |
589,766,165.32 |
360,866,766.91 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Services |
175,278,730.70 |
535,707,252.31 |
325,372,680.89 |
|
Selling Expenses |
6,882,760.04 |
5,802,627.04 |
5,903,189.67 |
|
Administrative Expenses |
13,120,686.81 |
10,945,495.09 |
17,723,792.91 |
|
Total Expenses |
195,282,177.55 |
552,455,374.44 |
348,999,663.47 |
|
|
|
|
|
|
Profit before Financial
Cost & Income Tax |
8,981,843.89 |
37,310,790.88 |
11,867,103.44 |
|
Financial Cost |
[67,142.46] |
[102,753.12] |
[113,514.62] |
|
|
|
|
|
|
Profit before Income Tax |
8,914,701.43 |
37,208,037.76 |
11,753,588.82 |
|
Income Tax |
[1,705,771.52] |
[8,523,380.18] |
[3,826,260.86] |
|
Net Profit / [Loss] |
7,208,929.91 |
28,684,657.58 |
7,927,327.96 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.98 |
1.85 |
1.39 |
|
QUICK RATIO |
TIMES |
2.92 |
1.77 |
1.38 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
35.93 |
154.57 |
94.29 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.45 |
3.20 |
1.86 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
5.63 |
5.64 |
1.12 |
|
INVENTORY TURNOVER |
TIMES |
64.87 |
64.68 |
326.93 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
91.57 |
39.96 |
134.21 |
|
RECEIVABLES TURNOVER |
TIMES |
3.99 |
9.13 |
2.72 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
0.03 |
- |
0.04 |
|
CASH CONVERSION CYCLE |
DAYS |
97.17 |
45.60 |
135.29 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
88.47 |
92.14 |
90.41 |
|
SELLING & ADMINISTRATION |
% |
10.10 |
2.88 |
6.57 |
|
INTEREST |
% |
0.03 |
0.02 |
0.03 |
|
GROSS PROFIT MARGIN |
% |
14.63 |
9.30 |
9.86 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.53 |
6.42 |
3.30 |
|
NET PROFIT MARGIN |
% |
3.64 |
4.93 |
2.20 |
|
RETURN ON EQUITY |
% |
7.72 |
33.28 |
13.79 |
|
RETURN ON ASSET |
% |
5.27 |
15.78 |
4.10 |
|
EARNING PER SHARE |
BAHT |
120.15 |
478.08 |
132.12 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.32 |
0.53 |
0.70 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.46 |
1.11 |
2.36 |
|
TIME INTEREST EARNED |
TIMES |
133.77 |
363.11 |
104.54 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(65.93) |
61.55 |
|
|
OPERATING PROFIT |
% |
(75.93) |
214.41 |
|
|
NET PROFIT |
% |
(74.87) |
261.85 |
|
|
FIXED ASSETS |
% |
46.60 |
(1.46) |
|
|
TOTAL ASSETS |
% |
(24.76) |
(5.99) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -65.93%. Turnover has decreased from THB
581,401,453.85 in 2012 to THB 198,112,530.00 in 2013. While net profit has
decreased from THB 28,684,657.58 in 2012 to THB 7,208,929.91 in 2013. And total
assets has decreased from THB 181,809,828.37 in 2012 to THB 136,785,137.44 in
2013.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
14.63 |
Deteriorated |
Industrial
Average |
59.67 |
|
Net Profit Margin |
3.64 |
Acceptable |
Industrial
Average |
5.44 |
|
Return on Assets |
5.27 |
Acceptable |
Industrial
Average |
9.76 |
|
Return on Equity |
7.72 |
Deteriorated |
Industrial
Average |
20.27 |
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 14.63%. 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 3.64%.
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 5.27%.
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 7.72%.
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 |
2.98 |
Impressive |
Industrial
Average |
2.17 |
|
Quick Ratio |
2.92 |
|
|
|
|
Cash Conversion Cycle |
97.17 |
|
|
|
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 2.98 times in 2013, increased from 1.85 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 2.92 times in 2013,
increased from 1.77 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 98 days.
Trend of the average
competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.32 |
Impressive |
Industrial
Average |
0.47 |
|
Debt to Equity Ratio |
0.46 |
Impressive |
Industrial
Average |
0.88 |
|
Times Interest Earned |
133.77 |
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 133.78 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 0.32 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 |
35.93 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.45 |
Satisfactory |
Industrial
Average |
1.79 |
|
Inventory Conversion Period |
5.63 |
|
|
|
|
Inventory Turnover |
64.87 |
Impressive |
Industrial
Average |
4.10 |
|
Receivables Conversion Period |
91.57 |
|
|
|
|
Receivables Turnover |
3.99 |
Satisfactory |
Industrial
Average |
4.54 |
|
Payables Conversion Period |
0.03 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.99 and 9.13 in
2013 and 2012 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 2013
decreased from 2012. 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 is 6 days at the end of 2012, same
number of days
as in 2013. This represents a positive trend. And
Inventory turnover has increased from 64.68 times in year 2012 to 64.87 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.45 times and 3.2
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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.10 |
|
|
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.77.68 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
PDT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
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.