MIRA INFORM REPORT
|
Report No. : |
353308 |
|
Report Date : |
09.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
TPT PETROCHEMICALS PUBLIC COMPANY LIMITED |
|
|
|
|
Formerly Known As : |
TUNTEX PETROCHEMICALS [THAILAND]
PUBLIC CO., LTD. |
|
|
|
|
Country : |
41st Floor, Ocean
Tower 2, 75/116-117
Soi Sukhumvit 19,
Sukhumvit Road, Klongtoeynua, Wattana,
Bangkok 10110 |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
22.11.1991 |
|
|
|
|
Com. Reg. No.: |
0107538000711 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
The subject is engaged in manufacturing of petrochemicals specialized in Purified Terephtalic
Acid [PTA], a
raw material for textile,
PET bottle, automobile
parts, photo film
and roof lining
industries. |
|
|
|
|
No. of Employees : |
250 |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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, and generally pro-investment policies Thailand has historically had a
strong economy due in part to competitive industrial and agriculture exports -
mostly electronics, agricultural commodities, automobiles and parts, and
processed foods. The economy experienced slow growth and declining exports in
2014, in part due to domestic political turmoil and sluggish global demand.
With full employment, Thailand attracts an estimated 2-4 million migrant
workers from neighboring countries, and faces labor shortages. Following the
May 2014 coup d'etat, tourism decreased 6-7% but is beginning to recover. The
household debt to GDP ratio is over 80%. 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 baht has remained stable.
|
Source
: CIA |
Company
name
TPT PETROCHEMICALS
PUBLIC COMPANY LIMITED
[ FORMER : TUNTEX PETROCHEMICALS [THAILAND]
PUBLIC CO., LTD.]
SUMMARY
BUSINESS ADDRESS : 41st
FLOOR, OCEAN TOWER
2, 75/116-117 SOI
SUKHUMVIT 19, SUKHUMVIT
ROAD, KLONGTOEYNUA, WATTANA,
BANGKOK 10110, THAILAND
TELEPHONE : [66] 2203-6900
FAX : [66] 2661-6600
E-MAIL ADDRESS : marketing@indorama.co.th
natnicha_k@tptpetro.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1991
REGISTRATION NO. : 0107538000711 [Former : BOR
MOR JOR. 594]
TAX ID NO. : 3011069783
CAPITAL REGISTERED : BHT.
2,955,000,000
CAPITAL PAID-UP : BHT.
2,955,000,000
SHAREHOLDER’S PROPORTION : THAI
: 0.03%
FOREIGN :
99.97%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED COMPANY
EXECUTIVE : MR. DILIP KUMAR
AGARWAL, INDIAN
CHIEF EXECUTIVE
OFFICER
NO. OF STAFF : 300
LINES OF BUSINESS : PETROCHEMICALS
MANUFACTURER, EXPORTER
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 November
22, 1991 as
a private limited
company under the registered
name “Tuntex Petrochemicals [Thailand] Co., Ltd.”, by
Thai and Foreign
groups, with the business objective to manufacture petrochemicals for domestic and export markets.
On December 1, 1995, the subject’s
status was converted
to a public
limited company under the name, “Tuntex Petrochemicals [Thailand]
Public Co., Ltd.”.
It was granted a promotional
privilege from the Board of Investment [BOI] for the production in 1995.
The subject is
a subsidiary of
Indorama Ventures Public
Company Limited, in
Mauritius.
Subject also achieved the standard ISO:14001 certificate from AJA
for environmental system
on June 28,
2004
On April 8,
2005, the subject’s
name was changed
to TPT PETROCHEMICALS PUBLIC
COMPANY LIMITED. It
currently employs 300
staff.
The subject’s registered
address was initially
at 54 Sukhumvit 21
Rd., Klongtoeynua, Wattana,
Bangkok 10110.
In 2010, the
subject’s registered address
was relocated to 41st Floor,
Ocean Tower 2, 75/116-117
Soi Sukhumvit 19, Sukhumvit
Road, Klongtoeynua, Wattana,
Bangkok 10110, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Aloke Lohia |
[x] |
Indian |
57 |
|
Mr. Pisith Leeartham |
|
Thai |
64 |
|
Mr. Kanit Seeh |
|
Thai |
65 |
|
Mrs. Suchitra Lohia |
|
Indian |
51 |
|
Ms. Rapeephan Luangaramrat |
|
Thai |
59 |
|
Mr. Dilip Kumar
Agarwal |
[x] |
Indian |
58 |
|
Mr. Sunil Fotedar |
[x] |
Indian |
52 |
|
Mr. Sanjeev Sharma |
[x] |
Indian |
48 |
AUTHORIZED PERSON
Any of the
mentioned directors [x]
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Dilip Kumar Agarwal
is the Chief
Executive Officer.
He is Indian nationality with the age
of 58 years
old.
Mr. Sunil Fotedar is
the Chief Manufacturing
Officer.
He is Indian
nationality with the
age of 52
years old.
Mr. Atul Shridar
Badwe is the
Senior Manager [Marketing and
Sales Department].
He is Indian
nationality.
Mrs. Natnicha Kulcharattham is
the Human Resources
Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is engaged in manufacturing of petrochemicals specialized
in Purified Terephtalic Acid
[PTA], a raw material
for textile, PET
bottle, automobile parts,
photo film and
roof lining industries.
PRODUCTION
602,000 metric tons
per annum
PURCHASE
Most of raw
materials are purchased
from local suppliers,
the remaining and machinery are
imported from Japan,
Taiwan, Republic of
China, Singapore, India,
Germany, and United
States of America.
MAJOR SUPPLIERS
BASF [Thai] Co., Ltd. : Thailand
PTT Global Chemicals
Public Company Limited : Thailand
EXPORT
80% of the
products is exported
to India, Pakistan,
United States of
America, Taiwan, Republic of China, Japan, Korea,
Indonesia, Hong Kong, Vietnam,
Germany and France.
SALES [LOCAL]
20% of the
products is sold
locally by wholesale
to manufacturers, dealers
and
end-users.
SUBSIDIARY AND
AFFILIATED COMPANY
TPT Utilities Co.,
Ltd.
Business Type :
Cogeneration plant
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 on the
credit term of
120 days &
T/T.
Exports are against
L/C at sight
or on the
credit term of
120 days &
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office : 333
Silom Rd., Silom,
Bangrak, Bangkok]
The Siam Commercial
Bank Public Co., Ltd.
[Head Office :
9 Ratchadapisek Rd., Ladyao,
Jatujak, Bangkok]
Thanachart Bank Public
Co., Ltd.
[New Petchburi
Branch : 1101 New Petchburi
Rd., Makkasan, Rajthevee,
Bangkok]
EMPLOYMENT
The subject employs
approximately 300 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in a prime
commercial area.
Factory and warehouse
are located on
240,000 square meters
of area at
3, I-7 Road,
Maptaphut Industrial Estate,
Maptaphut, Muang, Rayong.
Tel. [66] 38 683-288-98, Fax
: [66] 38
683-300
COMMENT
Subject is the leading
and largest PTA
manufacturer, who is the major
supplier of such products to
textile manufactures both domestic
and international markets.
Sluggish economic growth
and shrinking industrial consumption
have affected the subject’s
sales in the
previous years. Meanwhile
global economic recovery
remained hazy and
this also had
negative implications for
Thai exports.
FINANCIAL INFORMATION
The capital was
registered at Bht.
1,000,000 divided into
10,000 shares of
Bht. 100 each.
The capital was
increased later as
following:
Bht. 250,000,000 on
September 10, 1992
Bht. 4,625,000,000 on
October 11, 1993
Bht. 6,903,000,000 in
2006
On August 23,
2011, the capital
was decreased to
Bht. 2,955,000,000 divided
into 492,500,000 shares
of Bht. 6
each with fully
paid.
MAIN SHAREHOLDERS
: [as at April 21,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Indorama Ventures Public
Company Limited Nationality: Mauritius Address : 75/102
Sukhumvit 19 Rd.,
Klongtoeynua, Wattana,
Bangkok |
492,372,999 |
99.97 |
|
Other Shareholders |
127,001 |
0.03 |
Total Shareholders : 106
Share Structure [as
at April 21,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
100 |
91,149 |
0.03 |
|
Foreign |
6 |
492,408,851 |
99.97 |
|
Total |
106 |
492,500,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Mr. Orawan Chunhakitpaisan No.
6105
BALANCE SHEET
[BAHT]
The latest financial
figures published for
December 31, 2013,
2012 & 2011
were:
ASSETS
[Unit :
Thousand Baht]
|
Current Assets |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
16,360 |
63,494 |
60,331 |
|
Trade Accounts Receivable |
2,154,799 |
1,502,161 |
2,118,849 |
|
Inventories |
947,521 |
1,197,061 |
1,360,911 |
|
Other Current Assets
|
308,934 |
168,887 |
299,930 |
|
|
|
|
|
|
Total Current Assets
|
3,427,614 |
2,931,603 |
3,840,021 |
|
|
|
|
|
|
Fixed Assets |
5,333,293 |
5,647,956 |
5,499,064 |
|
Intangible Assets |
10,573 |
12,808 |
13,366 |
|
Deferred Income Tax |
323,866 |
289,207 |
- |
|
Other Non-current Assets |
12,187 |
12,092 |
12,072 |
|
Total Assets |
9,107,533 |
8,893,669 |
9,364,523 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
[Unit
: Thousand Baht]
|
Current
Liabilities |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institution |
1,256,526 |
1,187,818 |
1,281,688 |
|
Trade Accounts Payable |
1,871,831 |
1,685,733 |
1,473,762 |
|
Other Current Liabilities |
157,468 |
119,888 |
179,430 |
|
|
|
|
|
|
Total Current Liabilities |
3,285,825 |
2,993,439 |
2,934,880 |
|
Long-term Loan from
Financial Institution |
993,317 |
993,317 |
1,564,404 |
|
Long-term Loan from Related Company |
1,725,000 |
1,725,000 |
1,153,000 |
|
Employee Benefits Obligation |
34,411 |
30,342 |
27,583 |
|
Estimated Liabilities |
136,647 |
160,936 |
141,979 |
|
Total Liabilities |
6,175,200 |
5,903,034 |
5,821,846 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 6
par value Authorized & issued share
capital 492,500 |
2,955,000 |
2,955,000 |
2,955,000 |
|
|
|
|
|
|
Capital Paid |
2,955,000 |
2,955,000 |
2,955,000 |
|
Surplus on Share
Capital |
61,200 |
61,200 |
61,200 |
|
Loss on Actuarial Mathematics Insurance |
- |
- |
[2,434] |
|
Retained Earning Appropriated for statutory
reserve |
295,500 |
295,500 |
295,500 |
|
Unappropriated |
[379,367] |
[321,065] |
233,411 |
|
Total Shareholders' Equity |
2,932,333 |
2,990,635 |
3,542,677 |
|
Total Liabilities &
Shareholders' Equity |
9,107,533 |
8,893,669 |
9,364,523 |
PROFIT &
LOSS ACCOUNT
[Unit :
Thousand Baht]
|
Revenue |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Sales |
19,722,863 |
17,507,320 |
20,801,508 |
|
Gain from Exchange
Rate |
18,867 |
21,733 |
109,317 |
|
Other Income |
32,260 |
31,450 |
29,235 |
|
Total Revenues |
19,773,990 |
17,560,503 |
20,940,060 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
19,396,009 |
17,873,903 |
19,130,477 |
|
Selling Expenses |
160,912 |
211,221 |
230,287 |
|
Administrative Expenses |
82,541 |
81,818 |
147,718 |
|
Remuneration Expenses |
18,184 |
18,151 |
21,330 |
|
Loss on Exchange
Rate |
208,855 |
214,742 |
163,594 |
|
Total Expenses |
19,866,501 |
18,399,835 |
19,693,406 |
|
|
|
|
|
|
Profit / [Loss] before Income Tax
|
[92,511] |
[839,332] |
1,246,654 |
|
Income Tax Benefit |
34,568 |
125,384 |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
[57,943] |
[713,948] |
1,246,654 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.04 |
0.98 |
1.31 |
|
QUICK RATIO |
TIMES |
0.66 |
0.52 |
0.74 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.70 |
3.10 |
3.78 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.17 |
1.97 |
2.22 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
17.83 |
24.44 |
25.97 |
|
INVENTORY TURNOVER |
TIMES |
20.47 |
14.93 |
14.06 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
39.88 |
31.32 |
37.18 |
|
RECEIVABLES TURNOVER |
TIMES |
9.15 |
11.65 |
9.82 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
35.22 |
34.42 |
28.12 |
|
CASH CONVERSION CYCLE |
DAYS |
22.48 |
21.34 |
35.03 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
98.34 |
102.09 |
91.97 |
|
SELLING & ADMINISTRATION |
% |
1.23 |
1.67 |
1.82 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
1.92 |
(1.79) |
8.70 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(0.47) |
(4.79) |
5.99 |
|
NET PROFIT MARGIN |
% |
(0.29) |
(4.08) |
5.99 |
|
RETURN ON EQUITY |
% |
(1.98) |
(23.87) |
35.19 |
|
RETURN ON ASSET |
% |
(0.64) |
(8.03) |
13.31 |
|
EARNING PER SHARE |
BAHT |
(0.12) |
(1.45) |
2.53 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.68 |
0.66 |
0.62 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.11 |
1.97 |
1.64 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
12.65 |
(15.84) |
|
|
OPERATING PROFIT |
% |
(88.98) |
(167.33) |
|
|
NET PROFIT |
% |
91.88 |
(157.27) |
|
|
FIXED ASSETS |
% |
(5.57) |
2.71 |
|
|
TOTAL ASSETS |
% |
2.40 |
(5.03) |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 12.65%. Turnover has increased from THB 17,507,320,000.00
in 2012 to THB 19,722,863,000.00 in 2013. While net profit has increased from
THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
1.92 |
Deteriorated |
Industrial Average |
62.38 |
|
Net Profit Margin |
(0.29) |
Deteriorated |
Industrial Average |
6.26 |
|
Return on Assets |
(0.64) |
Deteriorated |
Industrial Average |
6.99 |
|
Return on Equity |
(1.98) |
Deteriorated |
Industrial Average |
11.35 |
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 1.92%. 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 -0.29%.
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 -0.64%.
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 -1.98%.
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 |
1.04 |
Deteriorated |
Industrial Average |
2.09 |
|
Quick Ratio |
0.66 |
|
|
|
|
Cash Conversion Cycle |
22.48 |
|
|
|
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 1.04 times in 2013, increase from 0.98 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 0.66 times in 2013,
increase from 0.52 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 23 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.68 |
Acceptable |
Industrial Average |
0.36 |
|
Debt to Equity Ratio |
2.11 |
Risky |
Industrial Average |
0.56 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.68 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.70 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
2.17 |
Impressive |
Industrial Average |
1.12 |
|
Inventory Conversion Period |
17.83 |
|
|
|
|
Inventory Turnover |
20.47 |
Impressive |
Industrial Average |
4.66 |
|
Receivables Conversion Period |
39.88 |
|
|
|
|
Receivables Turnover |
9.15 |
Impressive |
Industrial Average |
4.83 |
|
Payables Conversion Period |
35.22 |
|
|
|
The company's Account Receivable Ratio is calculated as 9.15 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 24 days at the
end of 2012 to 18 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 14.93 times in year 2012 to 20.47
times in year 2013.
The company's Total Asset Turnover is calculated as 2.17 times and 1.97
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 Downtrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.80 |
|
|
1 |
Rs.100.49 |
|
Euro |
1 |
Rs.72.52. |
|
Thai Baht |
1 |
Rs.1.86 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
TRI |
|
|
|
|
Report Prepared
by : |
TPT |
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.