MIRA
INFORM REPORT
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Report No. : |
306713 |
|
Report Date : |
07.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
K & U
ENTERPRISE CO., LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
06.05.2005 |
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Com. Reg. No.: |
0745548001772 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
engaged in Manufacturing, Exporting
and Distributing various kinds
of frozen Japanese foods, e.g. Frozen Sushi, Sushi Topping [Fish/Squid
& Cuttlefish/Shrimp/Octopus/Sliced
Salmon], mainly supply
to Supermarkets and
Japanese Restaurants. |
|
|
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|
No of Employees : |
600 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 |
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Very High |
C1 |
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Restricted |
C2 |
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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
K & U ENTERPRISE
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 1289
WICHIANCHODOK ROAD, T. MAHACHAI,
A.
MUANG, SAMUTSAKORN 74000,
THAILAND
TELEPHONE : [66] 34
820-922, 34 821-126-7
FAX
: [66] 34
820-888
E-MAIL
ADDRESS : thekue@kue.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2005
REGISTRATION
NO. : 0745548001772
TAX
ID NO. : 3031793439
CAPITAL REGISTERED : BHT. 120,000,000
CAPITAL PAID-UP : BHT.
120,000,000
SHAREHOLDER’S PROPORTION : THAI :
50.00%
JAPANESE :
50.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. HARUO KATO,
JAPANESE
PRESIDENT
NO. OF
STAFF : 600 (Approximately)
LINES
OF BUSINESS : FROZEN JAPANESE
FOODS
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 May 6, 2005
as a private
limited company under
the registered name K
& U ENTERPRISE CO., LTD., by
Thai and Japanese
groups, with the
business objective to
manufacture various kinds
of frozen Japanese
foods to both
domestic and international
markets. It currently
employs approximately 600
staff.
The
subject’s registered address
is 1289 Wichianchodok
Road, T. Mahachai, A. Muang,
Samutsakorn 74000, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Nittaya Tavanapong |
[x] |
Thai |
60 |
|
Ms. Panadda Tavanapong |
|
Thai |
49 |
|
Mr. Anurat Kowkasai |
|
Thai |
52 |
|
Mr. Yutthapong Moolsena |
[x] |
Thai |
39 |
|
Mr. Kenji Mogi |
|
Japanese |
49 |
|
Mr. Haruo Kato :
Chairman |
[-] |
Japanese |
57 |
|
Mr. Shinsuke Suzuki |
[-] |
Japanese |
40 |
|
Mr. Shigeru Kondo |
|
Japanese |
57 |
AUTHORIZED PERSON
One of the
mentioned directors [x] can
jointly sign with
anyone of the
mentioned directors [-] on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Haruo Kato is
the President.
He is Japanese
nationality with the
age of 57
years old.
Mr. Yutthapong Moolsena is
the General Manager.
He is Thai
nationality with the
age of 39
years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing, exporting and distributing various
kinds of frozen Japanese foods,
e.g. frozen sushi, sushi topping [fish/squid & cuttlefish/shrimp/octopus/sliced
salmon], mainly supply
to supermarkets and Japanese restaurants.
PURCHASE
Raw materials and
ingredients are purchased
from suppliers both
domestic and overseas
in Japan, Indonesia,
Malaysia, Vietnam and
India.
SALES
90% of the
products is exported
to Japan, Canada,
U.S.A., and the
countries in Europe,
the remaining 10% is
sold locally.
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
T/T.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
The
Siam Commercial Bank
Public Co., Ltd.
Sumitomo-Mitsubishi Banking
Corporation
EMPLOYMENT
The subject employs
approximately 600 staff.
LOCATION
DETAILS
The
premise is owned for
administrative office, factory
and warehouse on
11,400 sq. m. of area
at the heading
address. Premise is
located in provincial.
COMMENT
The subject is
a manufacturer, distributor
and exporter of
frozen Japanese foods.
Subject had a strong
business. Despite slow
consumption in both
domestic and international
markets, subject still
retains its business
as a leading
of such products
in the markets.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 120,000,000 divided
into 120,000 shares
of Bht. 1,000 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 8, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Union Frozen Products
Co., Ltd. Nationality: Thai Address : 1259, 1094/10 Wichianchodok Road,
T.
Mahachai, A. Muang, Samutsakorn
|
60,000 |
50.00 |
|
Kyokuyo Co., Ltd. Nationality: Japanese Address : 3-5-3 Chome, Akasaka, Minato-ku, Tokyo, Japan |
59,999 |
50.00 |
|
Mr. Shigeru Kondo Nationality: Japanese Address : 3-5-3 Chome, Akasaka, Minato-ku, Tokyo, Japan |
1 |
- |
Total Shareholders : 3
Share Structure [as
at April 8, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
60,000 |
50.00 |
|
Foreign - Japanese |
2 |
60,000 |
50.00 |
|
Total |
3 |
120,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Likit Sirirojsophon No. 5678
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents
|
50,569,453.28 |
73,000,653.69 |
19,446,884.66 |
|
Trade Accounts Receivable |
21,673,091.10 |
33,653,909.55 |
37,359,650.93 |
|
Trade Accounts Receivable - Related
Company |
37,035,407.26 |
58,001,285.07 |
65,767,400.03 |
|
Inventories |
386,263,895.10 |
526,163,090.78 |
465,306,015.49 |
|
Revenue Department Receivable |
2,998,237.98 |
4,348,420.89 |
3,060,924.96 |
|
Other Current Assets
|
4,804,254.28 |
4,590,779.05 |
3,991,720.69 |
|
|
|
|
|
|
Total Current Assets
|
503,344,339.00 |
699,758,139.03 |
594,932,596.76 |
|
Fixed Assets |
230,424,548.29 |
247,399,572.32 |
239,876,332.67 |
|
Intangible Assets |
2,751,348.34 |
3,297,933.03 |
3,793,148.69 |
|
Deferred Income Tax |
2,776,167.20 |
12,299,107.40 |
19,949,837.12 |
|
Other Non-current Assets |
4,600,406.14 |
4,510,793.98 |
4,602,906.16 |
|
Total Assets |
743,896,808.97 |
967,265,545.76 |
863,154,821.40 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Short-term Loan
from Bank |
330,000,000.00 |
150,000,000.00 |
300,000,000.00 |
|
Trade Accounts
Payable |
22,362,705.94 |
21,638,350.58 |
24,142,835.28 |
|
Trade Accounts
Payable - Related Company |
229,887,578.79 |
515,251,074.53 |
280,736,614.79 |
|
Current Portion of
Hire-purchase Payable |
537,416.39 |
293,674.41 |
86,502.30 |
|
Other Payable |
67,813.16 |
207,338.10 |
73,505.37 |
|
Other Payable
- Related Company |
1,345,692.90 |
9,697,322.54 |
6,545,795.11 |
|
Other Current
Liabilities |
23,168,814.10 |
27,778,105.03 |
36,717,137.54 |
|
|
|
|
|
|
Total Current
Liabilities |
607,370,021.28 |
724,865,865.19 |
648,302,390.39 |
|
Estimated Liabilities
from Employee Benefits |
3,775,300.00 |
5,942,100.00 |
2,329,440.00 |
|
Hire-purchase Payable - Net |
872,089.91 |
473,732.89 |
261,542.23 |
|
Total Liabilities |
612,017,411.19 |
731,281,698.08 |
650,893,372.62 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000 par
value Authorized &
issued share capital
120,000 shares
|
120,000,000.00 |
120,000,000.00 |
120,000,000.00 |
|
|
|
|
|
|
Capital Paid |
120,000,000.00 |
120,000,000.00 |
120,000,000.00 |
|
Retained Earning Appropriated for Legal Reserve |
10,000,000.00 |
10,000,000.00 |
6,000,000.00 |
|
Unappropriated [Deficit] |
1,879,397.78 |
107,983,847.68 |
86,261,448.78 |
|
|
|
|
|
|
Total Shareholders' Equity |
131,879,397.78 |
237,983,847.68 |
212,261,448.78 |
|
Total Liabilities &
Shareholders' Equity |
743,896,808.97 |
967,265,545.76 |
863,154,821.40 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
1,242,496,118.77 |
1,647,755,447.57 |
1,575,016,557.58 |
|
Gain on Exchange
Rate |
61,146,365.43 |
70,850,430.83 |
- |
|
Other Income |
48,203,247.68 |
66,217,803.78 |
46,225,755.12 |
|
Total Revenues |
1,351,845,731.88 |
1,784,823,682.18 |
1,621,242,312.70 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,330,571,504.10 |
1,612,080,857.00 |
1,459,829,600.99 |
|
Selling Expenses |
38,087,805.63 |
54,340,136.33 |
40,357,210.74 |
|
Administrative Expenses |
59,553,755.26 |
67,036,172.40 |
65,359,508.42 |
|
Loss on Exchange
Rate |
- |
- |
14,415,528.74 |
|
Total Expenses |
1,428,213,064.99 |
1,733,457,165.73 |
1,579,961,848.89 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost L&
Income Tax |
[76,367,333.11] |
51,366,516.45 |
41,280,463.81 |
|
Financial Cost |
[6,214,176.59] |
[7,993,387.83] |
[9,256,853.17] |
|
|
|
|
|
|
Profit /[loss] before Income
Tax |
[82,581,509.70] |
43,373,128.62 |
32,023,610.64 |
|
Income Tax |
[9,522,940.20] |
[7,650,729.72] |
[1,892,592.78] |
|
Net Profit / [Loss] |
[92,104,449.90] |
35,722,398.90 |
30,131,017.86 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.83 |
0.97 |
0.92 |
|
QUICK RATIO |
TIMES |
0.18 |
0.23 |
0.19 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.39 |
6.66 |
6.57 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.67 |
1.70 |
1.82 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
105.96 |
119.13 |
116.34 |
|
INVENTORY TURNOVER |
TIMES |
3.44 |
3.06 |
3.14 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
6.37 |
7.45 |
8.66 |
|
RECEIVABLES TURNOVER |
TIMES |
57.33 |
48.96 |
42.16 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
6.13 |
4.90 |
6.04 |
|
CASH CONVERSION CYCLE |
DAYS |
106.19 |
121.69 |
118.96 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
107.09 |
97.83 |
92.69 |
|
SELLING & ADMINISTRATION |
% |
7.86 |
7.37 |
6.71 |
|
INTEREST |
% |
0.50 |
0.49 |
0.59 |
|
GROSS PROFIT MARGIN |
% |
1.71 |
10.48 |
10.25 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(6.15) |
3.12 |
2.62 |
|
NET PROFIT MARGIN |
% |
(7.41) |
2.17 |
1.91 |
|
RETURN ON EQUITY |
% |
(69.84) |
15.01 |
14.20 |
|
RETURN ON ASSET |
% |
(12.38) |
3.69 |
3.49 |
|
EARNING PER SHARE |
BAHT |
(767.54) |
297.69 |
251.09 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.82 |
0.75 |
0.75 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.64 |
3.06 |
3.07 |
|
TIME INTEREST EARNED |
TIMES |
(12.29) |
6.43 |
4.46 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(24.59) |
4.62 |
|
|
OPERATING PROFIT |
% |
(248.67) |
24.43 |
|
|
NET PROFIT |
% |
(357.83) |
18.56 |
|
|
FIXED ASSETS |
% |
(6.86) |
3.14 |
|
|
TOTAL ASSETS |
% |
(23.09) |
12.06 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -24.59%. Turnover has decreased from THB
1,647,755,447.57 in 2012 to THB 1,242,496,118.77 in 2013. While net profit has decreased
from THB 35,722,398.90 in 2012 to THB -92,104,449.90 in 2013. And total assets
has decreased from THB 967,265,545.76 in 2012 to THB 743,896,808.97 in 2013.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
1.71 |
Deteriorated |
Industrial Average |
6.68 |
|
Net Profit Margin |
(7.41) |
Deteriorated |
Industrial Average |
(0.86) |
|
Return on Assets |
(12.38) |
Deteriorated |
Industrial Average |
(1.25) |
|
Return on Equity |
(69.84) |
Deteriorated |
Industrial Average |
(4.51) |
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 1.71%. 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 -7.41%.
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 -12.38%.
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 -69.84%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.83 |
Risky |
Industrial Average |
0.98 |
|
Quick Ratio |
0.18 |
|
|
|
|
Cash Conversion Cycle |
106.19 |
|
|
|
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 0.83 times in 2013, decreased 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 0.18 times in 2013,
decreased from 0.23 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 107 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.82 |
Acceptable |
Industrial Average |
0.77 |
|
Debt to Equity Ratio |
4.64 |
Risky |
Industrial Average |
3.30 |
|
Times Interest Earned |
(12.29) |
Risky |
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 -12.29 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 Uptrend
Times Interest Earned Stable
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
5.39 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.67 |
Impressive |
Industrial Average |
1.46 |
|
Inventory Conversion Period |
105.96 |
|
|
|
|
Inventory Turnover |
3.44 |
Satisfactory |
Industrial Average |
3.46 |
|
Receivables Conversion Period |
6.37 |
|
|
|
|
Receivables Turnover |
57.33 |
Impressive |
Industrial Average |
6.80 |
|
Payables Conversion Period |
6.13 |
|
|
|
The company's Account Receivable Ratio is calculated as 57.33 and 48.96
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 increased from 2012. This would suggest the company had good performance
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 119 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 3.06 times in year 2012 to 3.44 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.67 times and 1.7
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 Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.74 |
|
UK Pound |
1 |
Rs.94.65 |
|
Euro |
1 |
Rs.70.79 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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.