MIRA INFORM REPORT
|
Report No. : |
356939 |
|
Report Date : |
26.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
FLAWLESS CO., LTD. |
|
|
|
|
Registered Office : |
Room 1909-1911, 19th Floor, Jewelry
Trade Center, 919/245-247
Silom Road, Silom,
Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
29.11.1985 |
|
|
|
|
Com. Reg. No.: |
0105528041715 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject’s activities
are importer and
distributor of diamonds,
gemstones, precious stones
and jewelry products
to local jewelry
trading and production
industry, as well
as exporter of
Thai’s cutting diamonds
and jewelry products.
|
|
|
|
|
No. of Employees : |
15 |
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
FLAWLESS CO., LTD.
SUMMARY
BUSINESS ADDRESS : ROOM
1909-1911, 19th
FLOOR, JEWELRY TRADE
CENTER,
919/245-247 SILOM ROAD,
SILOM, BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2630-0444-6, 2235-9664
FAX : [66] 2630-0443,
2237-8562
E-MAIL ADDRESS : flawless@flawlesscompany.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1985
REGISTRATION NO. : 0105528041715 [Former : 4171/2528]
TAX ID NO. : 3101369687
CAPITAL REGISTERED : BHT.
90,000,000
CAPITAL PAID-UP : BHT.
90,000,000
SHAREHODER’S PROPORTION : THAI
: 51.00%
INDIAN : 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR.
SUNIL KOTHARI, INDIAN
PRESIDENT
NO. OF STAFF : 15
LINES OF BUSINESS : DIAMONDS, GEMS
AND JEWELRY PRODUCTS
IMPORTER, 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 29,
1985 as a
private limited company
under the name
style FLAWLESS CO., LTD, by
Thai and Indian
groups, in order
to import, distribute and export
diamonds, gemstone and
jewelry products. It currently
employs 15 staff.
The subject’s registered
address was Room
1909-1910, 19th Floor, Jewelry
Trade Center, 919/245-246 Silom Rd., Silom, Bangrak,
Bangkok 10500.
In 2010, its
registered address was
relocated to Room
1909-1911, 19th Floor,
Jewelry Trade Center,
919/245-247 Silom Rd.,
Silom, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sunil Kothari
|
|
Indian |
53 |
|
Mr. Alongkorn Bovornvirakit |
|
Thai |
63 |
|
Mr. Poonam Chand
Kothari |
|
Indian |
47 |
|
Mrs. Chotika Khanthachavana |
|
Thai |
41 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Sunil Kothari
is the President.
He is Indian
nationality with the
age of 53
years old.
Mr. Poonam Chand Kothari
is the Managing
Director.
He is Indian
nationality with the
age of 47
years old.
Mrs. Panvadee Bovornvirakit
is the Assistant
Managing Director.
She is Thai
nationality.
Mr. Alongkorn Bovornvirakit
is the Executive
Director.
He is Thai
nationality with the
age of 63
years old.
BUSINESS OPERATIONS
The subject’s activities
are importer and
distributor of diamonds,
gemstones, precious stones
and jewelry products
to local jewelry
trading and production
industry, as well
as exporter of
Thai’s cutting diamonds
and jewelry products.
PURCHASE
Diamonds and precious
stones are purchased
from both local
and overseas suppliers
in India, Belgium,
Hong Kong, Republic of
China and South
Africa.
MAJOR SUPPLIERS
Flawless Diamond [India]
Ltd. : India
Concorde International Ltd. : India
SALES [LOCAL]
80% of the
products is sold
locally by wholesale
to local traders
and manufacturers.
EXPORT
20% of the
products is exported
to Hong Kong, Japan,
Indonesia, Republic of
China, 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 credit term
of 30-60 days.
Local bills are
paid by cash
or on the
credit 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.
[Head Office : 333
Silom Rd., Silom,
Bangrak, Bangkok]
EMPLOYMENT
The subject employs
15 staff [office
and sales staff].
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in a prime commercial area.
COMMENT
The subject is
a leading supplier
of diamonds and
precious stones in
local market for
many years. With long experience
and focusing on high valued products to
respond to customer
demands has enabled
the subject to be
recognized among its
customers.
Despite shrinking consumers’
spending, the subject is
able to maintain
a strong business.
FINANCIAL INFORMATION
The capital was
initially registered at Bht.
1,000,000 divided into 1,000 shares of
Bht. 1,000 each.
The capital was increased later as follows:
Bht 16,000,000
on October 25, 1995
Bht. 25,000,000
on March 14,
2006
Bht. 45,000,000
on June 29,
2007
Bht. 60,000,000
on June 5,
2008
Bht. 80,000,000
on October 10, 2008
Bht. 90,000,000
on March 4,
2009
The latest registered
capital was increased
to Bht. 90,000,000 divided
into 90,000 shares
of Bht. 1,000 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at
April 29, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Sunil Kothari Nationality: Indian Address : 919/245-247 Silom Rd., Silom,
Bangrak
Bangkok 10500 |
21,500 |
23.89 |
|
Mr. Poonam Chand
Kothari Nationality: Indian Address :
919/245-247 Silom Rd., Silom,
Bangrak
Bangkok 10500 |
18,100 |
20.11 |
|
Mrs. Panvadee Bovornvirakit Nationality: Thai Address : 19/62
Moo 2, Ladprao, Bangkok |
13,000 |
14.44 |
|
Mr. Alongkorn Bovornvirakit Nationality: Thai Address : 19/62
Moo 2, Ladprao, Bangkok
|
10,000 |
11.11 |
|
Mrs. Chotika Khanthachavana Nationality: Thai Address : 1298/489
Rama 3 Rd.,
Chongnonsi,
Yannawa, Bangkok |
5,900 |
6.56 |
|
Ms. Suchanart Chokechaicharoen Nationality: Thai Address : 74/433 Ramkhamhaeng 180
Rd., Minburi, Bangkok |
5,000 |
5.57 |
|
Mr. Siddharth Kothari Nationality: Indian Address : C-106
Jhankar Bhawan, Savitri
Path, Bapu Nagar,
Jaipur, India |
4,500 |
5.00 |
|
Mr. Pattapol Bovornvirakit Nationality: Thai Address : 19/62
Moo 2, Ladprao, Bangkok |
4,000 |
4.44 |
|
Mr. Chinapat Bovornvirakit Nationality: Thai Address : 19/62
Moo 2, Ladprao, Bangkok |
4,000 |
4.44 |
|
Ms. Aim-orn Sak-arpha Nationality: Thai Address : 59/17
Moo 4, Bangtalad,
Pakkred, Nonthaburi |
4,000 |
4.44 |
Total Shareholders : 10
Share Structure [as
at April 29,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
45,900 |
51.00 |
|
Foreign - Indian |
3 |
44,100 |
49.00 |
|
Total |
10 |
90,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Ms. Pallapa Saard No. 3971
BALANCE SHEET
[BAHT]
The latest financial
figures published for December
31, 2014, 2013 & 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
708,477.48 |
902,186.14 |
490,670.68 |
|
Trade Accounts Receivable |
89,429,241.97 |
122,377,678.61 |
99,630,113.99 |
|
Inventories |
386,836,820.66 |
290,896,308.56 |
224,003,868.46 |
|
Other Current Assets
|
1,346,961.56 |
1,360,447.81 |
835,610.20 |
|
Total Current Assets
|
478,321,501.67 |
415,536,621.12 |
324,960,263.33 |
|
|
|
|
|
|
Fixed Deposit |
2,100,000.00 |
2,100,000.00 |
2,100,000.00 |
|
Fixed Assets |
4,269,459.44 |
2,944,929.44 |
4,079,473.98 |
|
Total Assets |
484,690,961.11 |
420,581,550.56 |
331,139,737.31 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial
Institutions |
160,389,666.48 |
127,272,382.02 |
86,270,278.36 |
|
Trade Accounts Payable |
206,359,281.90 |
180,355,566.07 |
111,327,281.35 |
|
Other Payable |
2,264,552.22 |
963,752.05 |
3,458,351.26 |
|
Accrued Income Tax |
304,503.24 |
- |
1,318,388.28 |
|
Accrued Expenses |
432,596.26 |
497,857.46 |
761,641.77 |
|
Other Current Liabilities |
833,166.13 |
257,119.73 |
1,260,590.31 |
|
Total Current Liabilities |
370,583,766.23 |
309,346,677.33 |
204,396,531.33 |
|
Total Liabilities |
370,583,766.23 |
309,346,677.33 |
204,396,531.33 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 90,000 shares |
90,000,000.00 |
90,000,000.00 |
90,000,000.00 |
|
Capital Paid |
90,000,000.00 |
90,000,000.00 |
90,000,000.00 |
|
Retained Earning Appropriated for
Statutory Reserve |
9,000,000.00 |
9,000,000.00 |
9,000,000.00 |
|
Unappropriated |
15,107,194.88 |
12,234,873.23 |
27,743,205.98 |
|
Total Shareholders' Equity |
114,107,194.88 |
111,234,873.23 |
126,743,205.98 |
|
Total Liabilities &
Shareholders' Equity |
484,690,961.11 |
420,581,550.56 |
331,139,737.31 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales |
691,666,729.26 |
626,853,239.54 |
664,060,631.98 |
|
Gain on Exchange
Rate |
2,393,175.87 |
- |
7,681,095.49 |
|
Other Income |
41,007.10 |
249,555.92 |
462,234.61 |
|
Total Revenues |
694,100,912.23 |
627,102,795.46 |
672,203,962.08 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
648,196,672.65 |
584,603,985.63 |
620,279,471.98 |
|
Selling Expenses |
12,050,032.09 |
11,667,111.03 |
14,576,873.02 |
|
Administrative Expenses |
22,159,229.56 |
19,543,188.99 |
21,438,401.07 |
|
Loss on Exchange
Rate |
- |
21,346,894.63 |
- |
|
Total Expenses |
682,405,934.30 |
637,161,180.28 |
656,294,746.07 |
|
Profit / [Loss] Before Financial Cost & Income Tax |
11,694,977.93 |
[10,058,384.82] |
15,909,216.01 |
|
Financial Cost |
[7,316,583.01] |
[5,449,947.93] |
[6,681,817.92] |
|
Profit / [Loss] Before Income
Tax |
4,378,394.92 |
[15,508,332.75] |
9,227,398.09 |
|
Income Tax |
[1,506,073.27] |
- |
[3,448,075.46] |
|
Net Profit / [Loss] |
2,872,321.65 |
[15,508,332.75] |
5,779,322.63 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.29 |
1.34 |
1.59 |
|
QUICK RATIO |
TIMES |
0.24 |
0.40 |
0.49 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
162.00 |
212.86 |
162.78 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.43 |
1.49 |
2.01 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
217.83 |
181.62 |
131.81 |
|
INVENTORY TURNOVER |
TIMES |
1.68 |
2.01 |
2.77 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
47.19 |
71.26 |
54.76 |
|
RECEIVABLES TURNOVER |
TIMES |
7.73 |
5.12 |
6.67 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
116.20 |
112.61 |
65.51 |
|
CASH CONVERSION CYCLE |
DAYS |
148.82 |
140.27 |
121.07 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
93.72 |
93.26 |
93.41 |
|
SELLING & ADMINISTRATION |
% |
4.95 |
4.98 |
5.42 |
|
INTEREST |
% |
1.06 |
0.87 |
1.01 |
|
GROSS PROFIT MARGIN |
% |
6.64 |
6.78 |
7.82 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.69 |
(1.60) |
2.40 |
|
NET PROFIT MARGIN |
% |
0.42 |
(2.47) |
0.87 |
|
RETURN ON EQUITY |
% |
2.52 |
(13.94) |
4.56 |
|
RETURN ON ASSET |
% |
0.59 |
(3.69) |
1.75 |
|
EARNING PER SHARE |
BAHT |
31.91 |
(172.31) |
64.21 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.76 |
0.74 |
0.62 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.25 |
2.78 |
1.61 |
|
TIME INTEREST EARNED |
TIMES |
1.60 |
(1.85) |
2.38 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
10.34 |
(5.60) |
|
|
OPERATING PROFIT |
% |
(216.27) |
(163.22) |
|
|
NET PROFIT |
% |
118.52 |
(368.34) |
|
|
FIXED ASSETS |
% |
44.98 |
(27.81) |
|
|
TOTAL ASSETS |
% |
15.24 |
27.01 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 10.34%. Turnover has increased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
6.64 |
Deteriorated |
Industrial Average |
16.41 |
|
Net Profit Margin |
0.42 |
Deteriorated |
Industrial Average |
1.41 |
|
Return on Assets |
0.59 |
Deteriorated |
Industrial Average |
3.02 |
|
Return on Equity |
2.52 |
Deteriorated |
Industrial Average |
8.20 |
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 6.64%. 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 0.42%.
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 0.59%.
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 2.52%.
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 |
1.29 |
Satisfactory |
Industrial Average |
1.66 |
|
Quick Ratio |
0.24 |
|
|
|
|
Cash Conversion Cycle |
148.82 |
|
|
|
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 1.29 times in 2014, decreased from 1.34 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 0.24 times in 2014,
decreased from 0.4 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 149 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.76 |
Acceptable |
Industrial Average |
0.60 |
|
Debt to Equity Ratio |
3.25 |
Risky |
Industrial Average |
1.49 |
|
Times Interest Earned |
1.60 |
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 1.6 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 0.76 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 |
162.00 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.43 |
Acceptable |
Industrial Average |
2.14 |
|
Inventory Conversion Period |
217.83 |
|
|
|
|
Inventory Turnover |
1.68 |
Deteriorated |
Industrial Average |
3.44 |
|
Receivables Conversion Period |
47.19 |
|
|
|
|
Receivables Turnover |
7.73 |
Impressive |
Industrial Average |
4.11 |
|
Payables Conversion Period |
116.20 |
|
|
|
The company's Account Receivable Ratio is calculated as 7.73 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 182 days at the
end of 2013 to 218 days at the end of 2014. This represents a negative trend.
And Inventory turnover has decreased from 2.01 times in year 2013 to 1.68 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.43 times and 1.49
times in 2014 and 2013 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.66.20 |
|
|
1 |
Rs.98.30 |
|
Euro |
1 |
Rs.72.41 |
|
Thai Baht |
1 |
Rs.1.84 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
HEE |
|
|
|
|
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.