MIRA INFORM REPORT
|
Report No. : |
315169 |
|
Report Date : |
03.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
MANGHARAMS [THAILAND] LIMITED |
|
|
|
|
Registered Office : |
1/50-51
SOI Prompong, Sukhumvit
39 Road, Klongtonnua, Wattana,
Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
05.01.1989 |
|
|
|
|
Com. Reg. No.: |
0105532001137 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in exporting
various kinds of garment,
for men, women
and children |
|
|
|
|
No. of Employee : |
37 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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 and address
MANGHARAMS [THAILAND] LIMITED
SUMMARY
BUSINESS
ADDRESS : 1/50-51 SOI
PROMPONG, SUKHUMVIT 39
ROAD,
KLONGTONNUA, WATTANA,
BANGKOK 10110,
THAILAND
TELEPHONE : [66] 2259-8786-8
FAX :
[66] 2662-4266-7,
2259-8789
E-MAIL
ADDRESS : info@mangharams.net
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1989
REGISTRATION
NO. : 0105532001137
TAX
ID NO. : 3101585773
CAPITAL REGISTERED : BHT. 10,000,000
CAPITAL PAID-UP : BHT.
10,000,000
SHAREHOLDER’S PROPORTION : THAI : 69.60%
FOREIGN :
30.40%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
GOBINDRAM NARAINDAS SAMTANI,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 37
LINES
OF BUSINESS : GARMENT
EXPORTER AND
SERVICE PROVIDER
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 January
5, 1989 as
a private limited
company under the registered
name MANGHARAMS [THAILAND] LIMITED, by Thai and foreign groups, in order to
export garment to overseas
customers. It currently
employs 37 staff.
The
subject’s registered address
is 1/50-51 Sukhumvit
39 Rd., Klongtonnua,
Wattana, Bangkok 10110,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Dinesh Rattan Mangharam |
|
Indian |
49 |
|
Mr. Gobindram Naraindas Samtani |
|
Indian |
85 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Gobindram Naraindas
Samtani is the
Managing Director.
He is Indian
nationality with the
age of 85 years
old.
Mr. Dinesh Rattan
Mangharam is the
Deputy Managing Director.
He is Indian
nationality with the
age of 49 years
old.
BUSINESS OPERATIONS
The subject is
engaged in exporting
various kinds of garment,
for men, women
and children, such
as ladies blouses,
skirt, dress, suit,
jeans, T-shirt, shirts, shorts, slacks,
cardigan and etc.,
under its own
brand “JACQUES VALMONT”,
as well as
providing commission service for
manufacturing the products under
customer’s brands such
as “TOMMY HIFIGER”,
“THE GAP”, “ALFRED
SUNG”, “VAN HEUSEN”,
“FEDERATED”, “JOHN HENRY”
and etc.
The subject hires
local manufacturer for
the production.
PURCHASE
Raw material mainly
fabric is purchased
from suppliers and
agents in both
domestic and overseas, such as
Vietnam, Hong Kong,
Cambodia, Bangladesh and
Republic of China.
EXPORT
100% of the products
is exported to
U.S.A., Hong Kong, Canada, Mexico and
EU 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 for 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.
EMPLOYMENT
The
subject employs 37 staff.
LOCATION DETAILS
The premise
is owned for
administrative office at
the heading address. Premise is
located in commercial/residential area.
COMMENT
The
subject was formed
in 1989 as
an exporter and
commission agent for
manufacturing world leading
brands garment such
as JACQUES VALMONT,
TOMMY HIFIGER, THE
GAP, ALFRED SUNG
and etc. Subject
has served its
clients at its
best for twenty-six
years. Though its
sales revenue in
2013 was drastically
decreased comparing to the
previous year’s level,
it was able
to obtain net
profit at the
end of year.
Despite of a
high competition in
garment industry, the
subject still maintains a moderate
business.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 3,000,000 divided into 30,000 shares of
Bht. 100
each.
The
capital was increased
later as following:
Bht. 6,000,000
on March 2, 1994
Bht. 8,000,000
on January 14,
1997
Bht. 9,000,000
on February 7,
2008
Bht. 10,000,000
on June 23,
2009
The
latest registered capital
was increased to Bht. 10,000,000 divided
into 100,000 shares
of Bht. 100 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE
[as at December
24, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Arthit Mangharam Nationality: Thai Address : 32/60
Sukhumvit 26 Rd.,
Klongton,
Klongtoey, Bangkok |
27,300 |
27.30 |
|
Ms. Annavee Mangharam Nationality: Thai Address : 32/60
Sukhumvit 26 Rd.,
Klongton,
Klongtoey, Bangkok |
25,800 |
25.80 |
|
Mr. Rattan Mangharam Nationality: Indian Address : 7th Floor, Cosmos Building, 8-11 Lan Kwai Fong,
Central,
Hong Kong |
13,900 |
13.90 |
|
Mr. Nirint Sachdev Nationality: Thai Address : 40
Sukhumvit 11 Rd.,
Klongtoey, Bangkok |
12,000 |
12.00 |
|
Mr. Gobindram Naraindas
Samtani Nationality: Indian Address : 7th Floor, Cosmos Building, 8-11 Lan Kwai Fong,
Central,
Hong Kong |
9,700 |
9.70 |
|
Mr. Dinesh Rattan
Mangharam Nationality: Indian Address : 32/60
Sukhumvit 26 Rd.,
Klongton,
Klongtoey, Bangkok |
6,800 |
6.80 |
|
Ms. Alekhya Mangharam Nationality: Thai Address : 32/60
Sukhumvit 26 Rd.,
Klongton,
Klongtoey, Bangkok |
4,500 |
4.50 |
Total Shareholders : 7
Share Structure [as
at December 24,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
69,600 |
69.60 |
|
Foreign - Indian |
3 |
30,400 |
30.40 |
|
Total |
7 |
100,000 |
100.00 |
NAME
OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Wanna Khemphet No.
9471
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
2,366,377.29 |
1,134,458.98 |
2,930,067.90 |
|
Trade Accounts &
Other Receivable |
|
|
|
|
Related company |
4,955,442.67 |
4,955,442.67 |
4,955,442.67 |
|
Non-related company |
19,637,313.75 |
26,833,658.90 |
21,442,618.52 |
|
Total |
24,592,756.42 |
31,789,101.57 |
26,398,061.19 |
|
Short-term Loans |
20,412,332.78 |
13,748,981.81 |
12,686,092.70 |
|
Receivable from Shareholder |
1,000,000.00 |
1,000,000.00 |
1,000,000.00 |
|
Inventories |
122,271,610.78 |
75,346,330.88 |
71,719,453.54 |
|
Value Added Tax |
3,486,676.56 |
2,266,536.90 |
492,367.54 |
|
Other Current Assets
|
3,847785.58 |
2,662,193.62 |
1,678,483.92 |
|
|
|
|
|
|
Total Current Assets
|
177,977,539.41 |
127,947,603.76 |
116,904,526.79 |
|
Cash at Bank pledged as a Collateral |
8,199,756.01 |
7,925,149.59 |
7,655,972.26 |
|
Fixed Assets |
17,712,320.86 |
18,305,943.55 |
20,152,327.79 |
|
Other Non - current Assets |
293,455.61 |
293,455.61 |
369,991.40 |
|
Total Assets |
204,183,071.89 |
154,472,152.51 |
145,082,818.24 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institutions |
71,565,570.01 |
53,062,880.74 |
49,441,234.63 |
|
Trade Accounts & Other
Payable |
|
|
|
|
Related company |
20,614,009.63 |
17,457,459.66 |
24,180,041.91 |
|
Non-related company |
62,340,336.91 |
50,275,780.53 |
41,179,477.97 |
|
Total |
82,954,346.54 |
67,733,240.19 |
65,359,519.88 |
|
Current Portion of
Long-term Liabilities |
222,562.91 |
- |
- |
|
Short-term Loans |
11,735,675.60 |
9,185,675.60 |
7,176,296.60 |
|
Accrued Income Tax |
287,412.32 |
231,761.23 |
- |
|
Deposits Received for Goods |
12,485,532.62 |
1,299,814.00 |
- |
|
Other Current Liabilities |
145,254.15 |
230,990.33 |
22,016.66 |
|
|
|
|
|
|
Total Current Liabilities |
179,396,354.15 |
131,744,362.09 |
122,199,067.77 |
|
Financial Lease Contract
Liabilities |
614,725.49 |
- |
- |
|
Employee Benefits Obligation |
615,331.40 |
588,717.37 |
494,346.81 |
|
Total Liabilities |
180,626,411.04 |
132,333,079.46 |
122,693,414.58 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 100,000 shares |
10,000,000.00 |
10,000,000.00 |
10,000,000.00 |
|
|
|
|
|
|
Capital Paid |
10,000,000.00 |
10,000,000.00 |
10,000,000.00 |
|
Retained Earning Unappropriated |
13,556,660.85 |
12,139,073.05 |
12,389,403.66 |
|
Total Shareholders' Equity |
23,556,660.85 |
22,139,073.05 |
22,389,403.66 |
|
Total Liabilities &
Shareholders' Equity |
204,183,071.89 |
154,472,152.51 |
145,082,818.24 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
176,722,942.44 |
242,069,395.35 |
131,350,304.63 |
|
Gain on Disposal of Assets |
- |
- |
11,861,855.79 |
|
Gain on Exchange Rate |
- |
3,186,735.99 |
- |
|
Other Income |
2,113,795.96 |
1,630,255.04 |
1,039,531.75 |
|
Total Revenues |
178,836,738.40 |
246,886,386.38 |
144,251,692.17 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
144,127,311.25 |
210,973,463.28 |
109,534,840.19 |
|
Selling Expenses |
1,723,908.06 |
2,693,888.71 |
568,707.60 |
|
Administrative Expenses |
25,004,020.14 |
28,268,617.94 |
30,125,695.98 |
|
Total Expenses |
170,855,239.45 |
241,935,969.93 |
140,229,243.77 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
7,981,498.95 |
4,950,416.45 |
4,022,448.40 |
|
Financial Cost |
[6,068,248.97] |
[4,730,266.86] |
[3,788,867.39] |
|
Profit / [Loss] before Income
Tax |
1,913,249.98 |
220,149.59 |
233,581.01 |
|
Income Tax |
[495,662.18] |
[470,480.20] |
[495,093.11] |
|
|
|
|
|
|
Net Profit / [Loss] |
1,417,587.80 |
[250,330.61] |
[261,512.10] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.99 |
0.97 |
0.96 |
|
QUICK RATIO |
TIMES |
0.27 |
0.36 |
0.35 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
9.98 |
13.22 |
6.52 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.87 |
1.57 |
0.91 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
309.65 |
130.35 |
238.99 |
|
INVENTORY TURNOVER |
TIMES |
1.18 |
2.80 |
1.53 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
40.56 |
40.46 |
59.59 |
|
RECEIVABLES TURNOVER |
TIMES |
9.00 |
9.02 |
6.13 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
157.88 |
86.98 |
137.22 |
|
CASH CONVERSION CYCLE |
DAYS |
192.33 |
83.83 |
161.35 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
81.56 |
87.15 |
83.39 |
|
SELLING & ADMINISTRATION |
% |
15.12 |
12.79 |
23.37 |
|
INTEREST |
% |
3.43 |
1.95 |
2.88 |
|
GROSS PROFIT MARGIN |
% |
19.64 |
14.84 |
26.43 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.52 |
2.05 |
3.06 |
|
NET PROFIT MARGIN |
% |
0.80 |
(0.10) |
(0.20) |
|
RETURN ON EQUITY |
% |
6.02 |
(1.13) |
(1.17) |
|
RETURN ON ASSET |
% |
0.69 |
(0.16) |
(0.18) |
|
EARNING PER SHARE |
BAHT |
14.18 |
(2.50) |
(2.62) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.88 |
0.86 |
0.85 |
|
DEBT TO EQUITY RATIO |
TIMES |
7.67 |
5.98 |
5.48 |
|
TIME INTEREST EARNED |
TIMES |
1.32 |
1.05 |
1.06 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(26.99) |
84.29 |
|
|
OPERATING PROFIT |
% |
61.23 |
23.07 |
|
|
NET PROFIT |
% |
666.29 |
4.28 |
|
|
FIXED ASSETS |
% |
(3.24) |
(9.16) |
|
|
TOTAL ASSETS |
% |
32.18 |
6.47 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is
-26.99%. Turnover has decreased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
19.64 |
Acceptable |
Industrial
Average |
36.26 |
|
Net Profit Margin |
0.80 |
Deteriorated |
Industrial
Average |
3.21 |
|
Return on Assets |
0.69 |
Deteriorated |
Industrial
Average |
4.64 |
|
Return on Equity |
6.02 |
Deteriorated |
Industrial
Average |
12.77 |
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 19.64%. 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 0.8%. 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 0.69%.
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 6.02%.
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 |
0.99 |
Risky |
Industrial
Average |
1.39 |
|
Quick Ratio |
0.27 |
|
|
|
|
Cash Conversion Cycle |
192.33 |
|
|
|
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 0.99 times in 2013, increase from 0.97 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 0.27 times in 2013,
decrease from 0.36 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 193 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.88 |
Acceptable |
Industrial
Average |
0.63 |
|
Debt to Equity Ratio |
7.67 |
Risky |
Industrial
Average |
1.67 |
|
Times Interest Earned |
1.32 |
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 1.32 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 0.88 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
9.98 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.87 |
Acceptable |
Industrial
Average |
1.45 |
|
Inventory Conversion Period |
309.65 |
|
|
|
|
Inventory Turnover |
1.18 |
Deteriorated |
Industrial
Average |
2.90 |
|
Receivables Conversion Period |
40.56 |
|
|
|
|
Receivables Turnover |
9.00 |
Impressive |
Industrial
Average |
3.46 |
|
Payables Conversion Period |
157.88 |
|
|
|
The company's Account Receivable Ratio is calculated as 9.00 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 130 days at the
end of 2012 to 310 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 2.8 times in year 2012 to 1.18 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.87 times and 1.57
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.62.59 |
|
|
1 |
Rs.92.46 |
|
Euro |
1 |
Rs.67.51 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
ASH |
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.