MIRA INFORM REPORT
|
Report No. : |
306482 |
|
Report Date : |
06.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
GIANSINGH
AMARNATH CORPORATION LTD. |
|
|
|
|
Registered Office : |
185-187 Vanich 1 Road,
Chakrawad, Samphantawong, Bangkok
10100 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2007 |
|
|
|
|
Date of Incorporation : |
09.04.2002 |
|
|
|
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Com. Reg. No.: |
0105545038891 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
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Line of Business : |
engaged in
Importing, Distributing and
Re-Exporting a variety of
textiles, as
well as exporting of
Local Textile Products.
Subject product
ranges are as follows: · Cotton/Viscose/Polyester/Nylon · Polyester/Microfiber · Flax/Linen/Ramie · T/R Suiting’s · Spun Polyester Sheeting’s · Denim for all fashion in jeans wears · Bedford cord and heavy fabric for accessories like bags, shoes · Dyed and Coated Polyester/Nylon Taffeta · PU/PVC Coated specialized fabric for dress material and accessories · Functional Fabric: Automobile Textiles, Coated Taffeta · Cotton/Spandex Grey: Cotton Spandex in wide width ladies dress material in stretch. |
|
|
|
|
No of Employees : |
21 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
Payment Behaviour : |
Unknown |
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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
GIANSINGH AMARNATH
CORPORATION LTD.
SUMMARY
BUSINESS
ADDRESS : 185-187 VANICH
1 ROAD,
CHAKRAWAD, SAMPHANTAWONG,
BANGKOK 10100,
THAILAND
TELEPHONE : [66] 2222-5168-9,
2224-0764-5
FAX :
[66] 2224-9552
E-MAIL
ADDRESS : info@giansingh.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2002
REGISTRATION
NO. : 0105545038891
TAX
ID NO. : 3030530196
CAPITAL REGISTERED : BHT. 45,000,000
CAPITAL PAID-UP : BHT.
45,000,000
SHAREHOLDER’S PROPORTION : THAI :
97.78%
INDIAN
: 2.22%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. TAVINCHAN KOGHAR,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 21
LINES
OF BUSINESS : TEXTILE
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE
PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : -
MANAGEMENT
STANDARD : -
HISTORY
The
subject was established
on April 9,
2002 as a
private limited company
under the registered
name GIANSINGH AMARNATH
CORPORATION LTD., by Thai-Indian
group, the Koghar
family. Its business
objective is to
import and distribute
a variety of
textiles to domestic
and overseas markets.
It currently employs
21 staff.
The subject’s registered address
is 185-187 Vanich 1 Road,
Chakrawad, Samphantawong, Bangkok
10100, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Tavinchan Koghar |
|
Thai |
58 |
|
Mr. Anand Koghar |
|
Thai |
34 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Tavinchan Koghar is
the Managing Director.
He is Thai
nationality with the
age of 58
years old.
Mr. Anand Koghar is
the Assistant Managing
Director.
He is Thai
nationality with the
age of 34
years old.
BUSINESS
OPERATIONS
The subject
is engaged in
importing, distributing and
re-exporting a variety of
textiles, as well
as exporting of
local textile products.
The products
are as follows:
- Cotton/Viscose/Polyester/Nylon
- Polyester/Microfiber
- Flax/Linen/Ramie
- T/R
Suiting’s
- Spun
Polyester Sheeting’s
- Denim
for all fashion
in jeans wears
- Bedford
cord and heavy
fabric for accessories
like bags, shoes
- Dyed
and Coated Polyester/Nylon Taffeta
- PU/PVC
Coated specialized fabric
for dress material
and accessories
- Functional Fabric:
Automobile Textiles, Coated
Taffeta
- Cotton/Spandex Grey:
Cotton Spandex in wide
width ladies dress
material in stretch.
PURCHASE
Most of the
products are imported
from India, Republic
of China., Japan,
Indonesia and the
countries in Europe,
the remaining is
purchased from local
suppliers.
SALES [LOCAL]
Most of the products are sold
locally by wholesale
to garment and automotive
manufactures, and by
retail to end-users
through the subject’s
shop.
EXPORT
The local products
are exported and
re-exported to India,
Singapore, Japan, U.S.A.,
and the countries
in Europe.
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
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
The
banker’s name was
not disclosed.
EMPLOYMENT
The
subject currently employs
21 staff.
LOCATION
DETAILS
The
premise is rented for
administrative office and
shop at the
heading address. Premise
is located in
commercial area.
COMMENT
Subject
has been in
its business for
over decade. Since
2008 the subject
has never submitted
its financial statement
to the Commercial
Registration Department, therefore
any business engagement
should be on secured
basis.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 20,000,000
divided into 20,000
shares of Bht.
1,000 each with
fully paid.
The
capital was increased
later as follows:
Bht. 30,000,000
on August 11,
2006
Bht. 35,000,000
on November 8,
2006
Bht. 45,000,000
on October 31,
2008
The
latest registered capital
was increased to
Bht. 45,000,000 divided
into 45,000 shares
of Bht. 1,000 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
March 28, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Tavinchan Koghar Nationality: Thai Address : 185
Vanich 1 Road,
Chakrawad, Samphantawong, Bangkok
|
32,000 |
71.12 |
|
Mr. Anand Koghar Nationality: Thai Address : 4
Sukhumvit Road, Klongtoeynua,
Wattana, Bangkok |
8,000 |
17.78 |
|
Mrs. Phawitter Nationality: Indian Address : 4
Sukhumvit Road, Klongtoeynua,
Wattana, Bangkok |
1,000 |
2.22 |
|
Ms. Kiran Koghar Nationality: Thai Address : 4
Sukhumvit Road, Klongtoeynua,
Wattana, Bangkok |
1,000 |
2.22 |
|
Mr. Sukjai Koghar Nationality: Thai Address : 1051
Mahajak Road, Chakrawad,
Samphantawong, Bangkok |
1,000 |
2.22 |
|
Mrs. Waraporn Saengsuk Nationality: Thai Address : 82/85
Moo 6, Sethakij
Road, T. Thasai, A. Muang, Samutsakorn
|
1,000 |
2.22 |
|
Mrs. Panyika Sayompop Nationality: Thai Address : 2940
Krungthep-Nonthaburi Road,
Bangsue, Bangkok |
1,000 |
2.22 |
Total Shareholders : 7
Share Structure [as
at March 28,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
44,000 |
97.78 |
|
Foreign-Indian |
1 |
1,000 |
2.22 |
|
Total |
7 |
45,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Orathai Kosallawat No.
1961
Note:
The 2008-2013 financial
statements were not
submitted to the
Commercial Registration Department
during investigation.
BALANCE
SHEET [BAHT]
The latest financial figures published
as at December
31, 2007, 2006
& 2005 were:
ASSETS
|
Current Assets |
2007 |
2006 |
2005 |
|
|
|
|
|
|
Cash and Cash Equivalents |
355,112.91 |
388,119.04 |
1,809,632.75 |
|
Trade Accounts Receivable
|
24,163,951.15 |
23,041,246.15 |
18,583,256.86 |
|
Inventories |
127,818,405.61 |
130,827,320.44 |
144,004,708.23 |
|
Other Current Assets |
4,110,272.57 |
4,344,641.33 |
10,533,876.74 |
|
|
|
|
|
|
Total Current Assets
|
156,447,742.24 |
158,601,326.96 |
174,931,474.58 |
|
|
|
|
|
|
Fixed Assets |
2,763,966.62 |
3,195,131.88 |
3,477,257.14 |
|
Deposit |
764,700.00 |
764,700.00 |
746,700.00 |
|
Total Assets |
159,976,408.86 |
162,561,158.84 |
179,155,431.72 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2007 |
2006 |
2005 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
80,094,753.59 |
81,194,326.37 |
73,844,308.52 |
|
Trade Accounts Payable
|
50,667,623.20 |
48,473,240.42 |
77,198,489.68 |
|
Current Portion of
Lease Contract Liabilities |
- |
815,256.00 |
939,072.00 |
|
Other Current Liabilities |
|
|
|
|
Accrued Income Tax |
11,017.47 |
269,470.17 |
1,148,565.81 |
|
Accrued Withholding Tax |
45,576.20 |
103,693.30 |
87,027.29 |
|
Accrues Expenses |
68,943.00 |
85,010.00 |
122,660.00 |
|
|
|
|
|
|
Total Current Liabilities |
130,887,913.46 |
130,940,996.26 |
153,340,123.30 |
|
Lease Contract Liabilities |
- |
382,238.53 |
1,088,301.67 |
|
Director Lenders |
- |
- |
4,600,000.00 |
|
Total Liabilities |
130,887,913.46 |
131,323,234.79 |
159,028,424.97 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 35,000 shares in 2007 & 2006; 20,000
shares in 2005 |
35,000,000.00 |
35,000,000.00 |
20,000,000.00 |
|
|
|
|
|
|
Capital Paid |
35,000,000.00 |
35,000,000.00 |
20,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
[5,911,504.60] |
[3,762,075.95] |
127,006.75 |
|
Total Shareholders' Equity |
29,088,495.40 |
31,237,924.05 |
20,127,006.75 |
|
Total Liabilities & Shareholders' Equity |
159,976,408.86 |
162,561,158.84 |
179,155,431.72 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2007 |
2006 |
2005 |
|
|
|
|
|
|
Sales Income |
65,418,245.63 |
158,334,727.27 |
242,142,408.56 |
|
Other Income |
1,722,468.48 |
1,383,266.25 |
1,587,756.60 |
|
Total Revenues |
67,140,714.11 |
159,717,993.52 |
243,730,165.16 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
55,232,620.44 |
139,526,511.25 |
225,186,220.15 |
|
Selling and Administrative Expenses |
10,812,537.86 |
19,623,823.65 |
17,952,867.02 |
|
Total Expenses |
66,045,158.30 |
159,150,334.90 |
243,139,087.17 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
1,095,555.81 |
567,658.62 |
591,077.99 |
|
Financial Cost |
[3,244,984.46] |
[4,419,426.09] |
[5,375,895.74] |
|
Income Tax |
- |
[37,315.23] |
[314,724.07] |
|
|
|
|
|
|
Net Profit / [Loss] |
[2,149,428.65] |
[3,889,082.70] |
[5,099,541.82] |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2007 |
2006 |
2005 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.20 |
1.21 |
1.14 |
|
QUICK RATIO |
TIMES |
0.19 |
0.18 |
0.13 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
23.67 |
49.55 |
69.64 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.41 |
0.97 |
1.35 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
844.68 |
342.24 |
233.41 |
|
INVENTORY TURNOVER |
TIMES |
0.43 |
1.07 |
1.56 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
134.82 |
53.12 |
28.01 |
|
RECEIVABLES TURNOVER |
TIMES |
2.71 |
6.87 |
13.03 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
334.83 |
126.81 |
125.13 |
|
CASH CONVERSION CYCLE |
DAYS |
644.67 |
268.55 |
136.30 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
84.43 |
88.12 |
93.00 |
|
SELLING & ADMINISTRATION |
% |
16.53 |
12.39 |
7.41 |
|
INTEREST |
% |
4.96 |
2.79 |
2.22 |
|
GROSS PROFIT MARGIN |
% |
18.20 |
12.75 |
7.66 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.67 |
0.36 |
0.24 |
|
NET PROFIT MARGIN |
% |
(3.29) |
(2.46) |
(2.11) |
|
RETURN ON EQUITY |
% |
(7.39) |
(12.45) |
(25.34) |
|
RETURN ON ASSET |
% |
(1.34) |
(2.39) |
(2.85) |
|
EARNING PER SHARE |
BAHT |
(61.41) |
(111.12) |
(254.98) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.82 |
0.81 |
0.89 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.50 |
4.20 |
7.90 |
|
TIME INTEREST EARNED |
TIMES |
0.34 |
0.13 |
0.11 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(58.68) |
(34.61) |
|
|
OPERATING PROFIT |
% |
93.00 |
(3.96) |
|
|
NET PROFIT |
% |
44.73 |
23.74 |
|
|
FIXED ASSETS |
% |
(13.49) |
(8.11) |
|
|
TOTAL ASSETS |
% |
(1.59) |
(9.26) |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -58.68%. Turnover has decreased from THB
158,334,727.27 in 2006 to THB 65,418,245.63 in 2007. While net profit has increased
from THB -3,889,082.70 in 2006 to THB -2,149,428.65 in 2007. And total assets
has decreased from THB 162,561,158.84 in 2006 to THB 159,976,408.86 in 2007.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
18.20 |
Impressive |
Industrial Average |
12.00 |
|
Net Profit Margin |
(3.29) |
Deteriorated |
Industrial Average |
0.98 |
|
Return on Assets |
(1.34) |
Deteriorated |
Industrial Average |
1.90 |
|
Return on Equity |
(7.39) |
Deteriorated |
Industrial Average |
5.07 |
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 18.2%. 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 -3.29%.
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 -1.34%.
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 -7.39%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Downtrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.20 |
Acceptable |
Industrial Average |
1.72 |
|
Quick Ratio |
0.19 |
|
|
|
|
Cash Conversion Cycle |
644.67 |
|
|
|
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 1.2 times in 2007, decreased from 1.21 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 0.19 times in 2007,
increased from 0.18 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 645 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.82 |
Acceptable |
Industrial Average |
0.61 |
|
Debt to Equity Ratio |
4.50 |
Risky |
Industrial Average |
1.45 |
|
Times Interest Earned |
0.34 |
Risky |
Industrial Average |
1.48 |
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 0.34 lower than 1, so the company is not generating
enough cash from EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.82 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 Uptrend
ACTIVITY :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
23.67 |
Impressive |
Industrial Average |
11.88 |
|
Total Assets Turnover |
0.41 |
Deteriorated |
Industrial Average |
1.98 |
|
Inventory Conversion Period |
844.68 |
|
|
|
|
Inventory Turnover |
0.43 |
Deteriorated |
Industrial Average |
5.07 |
|
Receivables Conversion Period |
134.82 |
|
|
|
|
Receivables Turnover |
2.71 |
Acceptable |
Industrial Average |
3.67 |
|
Payables Conversion Period |
334.83 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.71 and 6.87 in
2007 and 2006 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 2007
decreased from 2006. 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 increased from 342 days at the
end of 2006 to 845 days at the end of 2007. This represents a negative trend.
And Inventory turnover has decreased from 1.07 times in year 2006 to 0.43 times
in year 2007.
The company's Total Asset Turnover is calculated as 0.41 times and 0.97
times in 2007 and 2006 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 Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.87 |
|
UK Pound |
1 |
Rs.94.07 |
|
Euro |
1 |
Rs.70.19 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
MNL |
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.