MIRA INFORM REPORT
|
Report No. : |
319793 |
|
Report Date : |
28.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
PRIME GEMS [THAI] CO., LTD. |
|
|
|
|
Registered Office : |
31st Floor,
Jewelry Trade Center
Building, 919/396 Silom Road,
Silom, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
12.06.1996 |
|
|
|
|
Com. Reg. No.: |
0105539065106 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in
importing, distributing
and re-exporting various
kinds of diamonds and gemstones,
as well as
exporting of the
local products for
jewelry trading and
production industry. |
|
|
|
|
No. of Employees : |
6 |
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
PRIME GEMS [THAI]
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 31st FLOOR,
JEWELRY TRADE CENTER
BUILDING,
919/396 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2630-1748-9,
089 813-1947
FAX :
[66] 2630-1747
E-MAIL
ADDRESS : primegems.co@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1996
REGISTRATION
NO. : 0105539065106 [Former: 1311/2539]
TAX
ID NO. : 3011730072
CAPITAL REGISTERED : BHT. 8,000,000
CAPITAL PAID-UP : BHT.
8,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN : 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. RAMESHBHAI ZAVERBHAI
ITALIYA, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 6
LINES
OF BUSINESS : DIAMOND
IMPORTER, 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 June 12,
1996 as a
private limited company
under the registered
name “Prime Gems Co.,
Ltd.” by Thai and
Indian groups. On
July 18, 1998,
subject’s name was changed to
PRIME GEMS [THAI] CO., LTD. The
subject’s objective is
an operator in diamond
trading business. It
currently employs 6
staff.
The
subject’s registered address
was initially at
297 Wanglee Bldg.,
Surawong Rd., Suriyawongse,
Bangrak, Bangkok 10500.
On
July 18, 2006,
it was moved
to 322/57 Surawong Rd.,
Suriyawongse, Bangrak,
Bangkok
10500.
On
February 22, 2007, it
was relocated to 31st Floor,
Jewelry Trade Center
Building, 919/396 Silom Rd.,
Silom, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Anghad Nitesh Ranchhodbhai |
|
Indian |
42 |
|
Mr. Rameshbhai Zaverbhai Italiya |
|
Indian |
44 |
|
Mr. Ketankumar Shantilal Italiya |
|
Indian |
27 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Rameshbhai Zaverbhai
Italiya is the
Managing Director.
He is Indian
nationality with the
age of 44 years
old.
BUSINESS OPERATIONS
The subject is engaged in
importing, distributing and re-exporting
various kinds of diamonds and
gemstones, as well
as exporting of
the local products
for jewelry trading
and production industry.
PURCHASE
80%
of the products
is imported from
India, Africa and
Hong Kong, the
remaining 20% is
purchased from local
suppliers.
SALES [LOCAL]
The products are
sold locally by
wholesale to dealers
and jewelry manufacturers.
EXPORT
The products are
exported and re-exported
to Hong Kong,
Japan, India 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
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.
EMPLOYMENT
The
subject employs 6
staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
COMMENT
Subject reported good
business in the
year 2013, while
in 2014 economic
slowdown, household debt
and uncertain political
situation were major
factors affecting several
local businesses with
performances not achieving targets as
anticipated. Jewelry industry
was generally dull
as consumers slowed
down on buying
the luxury goods.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 4,000,000
divided into 40,000
shares of Bht. 100
each.
The
capital was increased
later as follows:
Bht. 6,000,000
on March 11,
2008
Bht. 8,000,000
on May 10,
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
April 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Rameshbhai Zaverbhai Italiya Nationality: Indian Address : 919/396
Silom Road, Silom,
Bangrak, Bangkok |
15,000 |
18.75 |
|
Mr. Ketankumar Shantilal Italiya Nationality: Indian Address : 919/396
Silom Road, Silom,
Bangrak, Bangkok |
14,200 |
17.75 |
|
Mr. Anghad Nitesh Ranchhodbhai Nationality: Indian Address : India |
10,000 |
12.50 |
|
Ms. Suthamma Jangtaisong Nationality: Thai Address : 82
Moo 9, T. Panthong, A. Saingam,
Kampaengpetch |
7,650 |
9.56 |
|
Mrs. Niraman Nunabee Nationality: Thai Address : 49/10
Moo 9, Suwintawong
Road,
Lampakchee, Nongjok, Bangkok |
7,650 |
9.56 |
|
Ms. Wanna Ratprakone Nationality: Thai Address : 90/1
Moo 2, T. Noncharoen, A. Bankruad, Buriram |
7,650 |
9.56 |
|
Mr. Nuttanon Krongboonjaras Nationality: Thai Address : 24/970
Soi Vibhavadee-Rangsit 37,
Vibhavadee-Rangsit Road, Seekan,
Donmuang, Bangkok |
7,650 |
9.56 |
|
Ms. Somluck Kitana Nationality: Thai Address : 32/480
Nawamin 135 Road,
Nuanchan, Bungkum, Bangkok |
5,000 |
6.26 |
|
Ms. Dusadee Krongboonjaras Nationality: Thai Address : 24/970
Soi Vibhavadee-Rangsit 37,
Vibhavadee-Rangsit Road, Seekan,
Donmuang, Bangkok |
3,200 |
4.00 |
|
Mr. Ekarat Poonphol Nationality: Thai Address : 3
Chitsuwan Road, T. Aranyaprathet, A.
Aranyaprathet, Srakaew |
2,000 |
2.50 |
Total Shareholders : 10
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
40,800 |
51.00 |
|
Foreign - Indian |
3 |
39,200 |
49.00 |
|
Total |
10 |
80,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Mr. Wattana Trikunta No. 2399
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 |
5,338,860.90 |
2,666,577.89 |
10,521,538.37 |
|
Trade Accounts Receivable
|
36,167,297.35 |
14,723,848.21 |
44,840,837.39 |
|
Inventories |
48,393,760.58 |
66,631,485.33 |
41,160,122.54 |
|
Other Current Assets
|
684,536.73 |
579,174.69 |
765,461.47 |
|
|
|
|
|
|
Total Current Assets
|
90,584,455.56 |
84,601,086.12 |
97,287,959.77 |
|
|
|
|
|
|
Fixed Assets |
212,931.97 |
428,159.70 |
652,801.30 |
|
Other Non - current Assets |
900.00 |
900.00 |
900.00 |
|
Total Assets |
90,798,287.53 |
85,030,145.82 |
97,941,661.07 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts Payable
|
71,521,266.52 |
67,605,600.43 |
82,545,186.01 |
|
Current Portion of
Hire-purchase Payable |
65,911.10 |
178,901.78 |
112,990.68 |
|
Accrued Income Tax |
505,192.15 |
525,719.05 |
- |
|
Other Current Liabilities |
315,540.92 |
554,122.70 |
452,548.13 |
|
|
|
|
|
|
Total Current Liabilities |
72,407,910.69 |
68,864,343.96 |
83,110,724.82 |
|
Hire-purchase Payable |
- |
- |
178,901.78 |
|
Total Liabilities |
72,407,910.69 |
68,864,343.96 |
83,289,626.60 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized,
issued and fully
paid share capital
80,000 shares in 2013; 60,000 shares
in 2012 &
2011 |
8,000,000.00 |
6,000,000.00 |
6,000,000.00 |
|
|
|
|
|
|
Capital Paid |
8,000,000.00 |
6,000,000.00 |
6,000,000.00 |
|
Retained Earning Unappropriated |
10,390,376.84 |
10,165,801.86 |
8,652,034.47 |
|
Total Shareholders' Equity |
18,390,376.84 |
16,165,801.86 |
14,652,034.47 |
|
Total Liabilities & Shareholders' Equity |
90,798,287.53 |
85,030,145.82 |
97,941,661.07 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
176,226,634.62 |
158,330,281.82 |
144,345,321.78 |
|
Other Income |
10,984.49 |
3,164,906.60 |
7,943.68 |
|
Total Revenues |
176,237,619.11 |
161,495,188.42 |
144,353,265.46 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
166,084,234.69 |
151,904,508.06 |
138,747,986.21 |
|
Selling Expenses |
186,369.34 |
187,715.33 |
92,775.50 |
|
Administrative Expenses |
5,973,977.69 |
5,566,489.64 |
4,603,139.16 |
|
Other Expenses |
2,792,400.34 |
- |
2,698,954.43 |
|
Total Expenses |
175,036,982.06 |
157,658,713.03 |
146,142,855.30 |
|
|
|
|
|
|
Profit / [Loss] before Financial
Cost & Income
Tax |
1,200,637.05 |
3,836,475.39 |
[1,789,589.84] |
|
Financial Cost |
[83,869.92] |
[81,697.38] |
[75,276.00] |
|
Profit / [Loss] before Income
Tax |
1,116,767.13 |
3,754,778.01 |
[1,864,865.84] |
|
Income Tax |
[892,192.15] |
[912,119.05] |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
224,574.98 |
2,842,658.96 |
[1,864,865.84] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.25 |
1.23 |
1.17 |
|
QUICK RATIO |
TIMES |
0.57 |
0.25 |
0.67 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
827.62 |
369.79 |
221.12 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.94 |
1.86 |
1.47 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
106.35 |
160.10 |
108.28 |
|
INVENTORY TURNOVER |
TIMES |
3.43 |
2.28 |
3.37 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
74.91 |
33.94 |
113.39 |
|
RECEIVABLES TURNOVER |
TIMES |
4.87 |
10.75 |
3.22 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
157.18 |
162.44 |
217.15 |
|
CASH CONVERSION CYCLE |
DAYS |
24.08 |
31.60 |
4.52 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
94.24 |
95.94 |
96.12 |
|
SELLING & ADMINISTRATION |
% |
3.50 |
3.63 |
3.25 |
|
INTEREST |
% |
0.05 |
0.05 |
0.05 |
|
GROSS PROFIT MARGIN |
% |
5.76 |
6.06 |
3.88 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.68 |
2.42 |
(1.24) |
|
NET PROFIT MARGIN |
% |
0.13 |
1.80 |
(1.29) |
|
RETURN ON EQUITY |
% |
1.22 |
17.58 |
(12.73) |
|
RETURN ON ASSET |
% |
0.25 |
3.34 |
(1.90) |
|
EARNING PER SHARE |
BAHT |
2.81 |
47.38 |
(31.08) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.80 |
0.81 |
0.85 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.94 |
4.26 |
5.68 |
|
TIME INTEREST EARNED |
TIMES |
14.32 |
46.96 |
(23.77) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
11.30 |
9.69 |
|
|
OPERATING PROFIT |
% |
(68.70) |
(314.38) |
|
|
NET PROFIT |
% |
(92.10) |
252.43 |
|
|
FIXED ASSETS |
% |
(50.27) |
(34.41) |
|
|
TOTAL ASSETS |
% |
6.78 |
(13.18) |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is 11.3%. Turnover has increased from THB 158,330,281.82
in 2012 to THB 176,226,634.62 in 2013. While net profit has decreased from THB
2,842,658.96 in 2012 to THB 224,574.98 in 2013. And total assets has increased
from THB 85,030,145.82 in 2012 to THB 90,798,287.53 in 2013.
PROFITABILITY : ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
5.76 |
Impressive |
Industrial Average |
3.01 |
|
Net Profit Margin |
0.13 |
Deteriorated |
Industrial Average |
0.58 |
|
Return on Assets |
0.25 |
Deteriorated |
Industrial Average |
3.55 |
|
Return on Equity |
1.22 |
Deteriorated |
Industrial Average |
14.14 |
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. Gross Profit Margin is 5.76%. When compared with
the industry average, the ratio of the company was higher, indicated that
company was more profitable than the same industry.
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 0.13%.
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 0.25%.
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 1.22%.
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 |
1.25 |
Satisfactory |
Industrial Average |
1.60 |
|
Quick Ratio |
0.57 |
|
|
|
|
Cash Conversion Cycle |
24.08 |
|
|
|
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 1.25 times in 2013, increase from 1.23 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 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 0.57 times in 2013,
increase from 0.25 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 25 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.80 |
Acceptable |
Industrial Average |
0.73 |
|
Debt to Equity Ratio |
3.94 |
Risky |
Industrial Average |
2.73 |
|
Times Interest Earned |
14.32 |
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 14.32 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 0.8 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 |
827.62 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.94 |
Deteriorated |
Industrial Average |
6.16 |
|
Inventory Conversion Period |
106.35 |
|
|
|
|
Inventory Turnover |
3.43 |
Deteriorated |
Industrial Average |
12.03 |
|
Receivables Conversion Period |
74.91 |
|
|
|
|
Receivables Turnover |
4.87 |
Acceptable |
Industrial Average |
8.23 |
|
Payables Conversion Period |
157.18 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.87 and 10.75
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 has decreased from 160 days at the
end of 2012 to 106 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 2.28 times in year 2012 to 3.43 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.94 times and 1.86
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.63.61 |
|
|
1 |
Rs.96.56 |
|
Euro |
1 |
Rs.69.18 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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.