|
Report No. : |
307417 |
|
Report Date : |
12.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
ALLURE JEWELLERY MFG CO., LTD. |
|
|
|
|
Registered Office : |
24
SOI Mahaesak 3,
Mahaesak Road, Suriyawongse, Bangrak,
Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Year of Establishment : |
2003 |
|
|
|
|
Com. Reg. No.: |
0105546002921 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject is engaged
in design, manufacturing, servicing
and exporting wide
range of jewelry
products, with different
size and cutting
of diamonds |
|
|
|
|
No. of Employee : |
50 |
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 : |
No complaints |
|
|
|
|
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 |
ALLURE JEWELLERY MFG CO., LTD.
BUSINESS
ADDRESS : 24
SOI MAHAESAK 3,
MAHAESAK ROAD,
SURIYAWONGSE, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2635-7301-8
FAX :
[66] 2635-7309
E-MAIL
ADDRESS : info@allure-jewels.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2003
REGISTRATION
NO. : 0105546002921 [Former
: 10154600047]
TAX
ID NO. : 3030814678
CAPITAL REGISTERED : BHT. 20,000,000
CAPITAL PAID-UP : BHT.
20,000,000
SHAREHOLDER’S PROPORTION : INDIAN : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MRS. REENU JIAN,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 50
LINES
OF BUSINESS : JEWELRY PRODUCTS
MANUFACTURER AND
EXPORTER
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
The
subject was established on January
8, 2003 as
a private limited
company under the registered name
ALLURE JEWELLERY MFG CO., LTD., by
Indian groups, to manufacture
and export jewelry
products to overseas
markets. It currently
employs approximately 50 staff.
The subject is
one of the
leading creators of
fine designer jewelry
in Thailand.
The
subject’s registered address
was initially located
at 1249/91 Gems
Tower Bldg., Charoenkrung
Rd., Suriyawongse, Bangrak,
Bangkok 10500.
In 2004, the
subject’s registered address
was relocated to
24 Soi Mahaesak 3,
Mahaesak Rd., Suriyawongse,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Reenu Jian |
|
Indian |
44 |
|
Mr. Ajay Jian |
|
Indian |
51 |
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
Mrs. Reenu Jian is
the Managing Director.
She is Indian
nationality with the
age of 44 years
old.
Mr. Ajay Jian is
the Assistant Managing
Director.
He is Indian
nationality with the
age of 51 years
old.
Mr. Ankur Adukia is
the Marketing Manager.
He is Indian
nationality.
The subject is
engaged in design,
manufacturing, servicing and
exporting wide range
of jewelry products,
with different size
and cutting of
diamonds. The products
are diamond earrings
with emerald and
18k gold, diamond
earrings with sapphire
and 18k gold,
diamond earrings with 18k
white gold, flower
diamond ring, 18k white
gold diamond ring,
18k white gold
flower diamond ring,
as well as
bracelet, necklace, pendant,
bangle and etc.,
according to customer’s
requirement.
100% of raw materials such as
diamond, precious stones,
gold, pearl, silver and accessories
are purchased from
local suppliers.
100% of the
products is exported to
India, Hong Kong, Japan, United
States of America, Canada,
Republic of China,
Australia, Europe and
Middle East countries.
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
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.
Local bills are
paid by cash or on
the credits term
of 30-60 days.
Exports are against
T/T.
Bangkok Bank Public
Co., Ltd.
The
subject employs approximately
50 office staff
and factory workers.
The
premise is rented
for administrative office
and factory at
the heading address.
Premise is located
in a prime
commercial area.
The subject
has expanded to become an international leader in
jewelry business with well
reputation in providing high quality
products with precious materials and detailed
craftsmanship. It produces medium to high-end products with
sophisticated design and technology. All
of the
products have been marketed in
overseas countries.
Though the
subject’s sales revenues
in 2013 was
increased comparing to
the previous year,
it obtained net
loss at the
end of year.
This was mainly
due to higher
cost of goods
sold, other expenses
and financial cost
which eroded on its profit
margin. Nevertheless, its
business outlook is still
moderate.
The
capital was initially
registered at Bht. 2,000,000 divided
into 20,000 shares
of Bht. 100
each.
The
capital was increased
later as follows:
Bht. 4,000,000
on May 9,
2003
Bht. 12,000,000
on January 12,
2007
Bht. 20,000,000
on January 10,
2011
The
latest registered capital
was increased to
Bht. 20,000,000 divided into
200,000 shares of Bht.
100 each with
fully paid.
[as
at April 30,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Reenu Jian Nationality: Indian Address : 24
Soi Mahaesak 3,
Mahaesak Rd., Suriyawongse, Bangrak,
Bangkok |
80,000 |
40.00 |
|
Mr. Ajay Jian Nationality: Indian Address : 24
Soi Mahaesak 3,
Mahaesak Rd.,
Suriyawongse, Bangrak, Bangkok
|
80,000 |
40.00 |
|
Ms. Achana Jian Nationality: Indian Address : 111/1
Lumpini Place 3
A, Soi Kraisee,
Sribamphen Rd., Sathorn
Soi 1, Sathorn, Bangkok |
40,000 |
20.00 |
Total Shareholders : 3
Share
Structure [as at
April 30, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign - Indian |
3 |
200,000 |
100% |
|
Total |
3 |
200,000 |
100% |
Mrs. Thiranuch Sukwattanasinit
No. 9160
The latest financial figures published
as at December
31, 2013, 2012
& 2011 were:
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
56,486.19 |
92,831.97 |
71,235.17 |
|
Short-term Investment |
10,000,000.00 |
- |
- |
|
Trade Accounts &
Other Receivable |
65,932,801.90 |
78,098,493.22 |
57,528,094.21 |
|
Inventories |
66,985,372.65 |
91,714,107.94 |
65,823,184.15 |
|
|
|
|
|
|
Total Current Assets
|
142,974,660.74 |
169,905,433.13 |
123,894,133.16 |
|
|
|
|
|
|
Fixed Assets |
2,890,417.94 |
2,007,751.35 |
2,148,421.92 |
|
Intangible Assets |
100,792.10 |
170,704.42 |
- |
|
Other Non-current Assets |
150,000.00 |
150,000.00 |
150,000.00 |
|
Total Assets |
146,115,870.78 |
172,233,888.90 |
126,192,555.08 |
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institutions |
74,710,183.15 |
48,920,572.91 |
44,869,110.76 |
|
Trade Accounts & Other
Payable |
38,735,820.21 |
84,599,757.72 |
47,058,439.99 |
|
Short-term Loan |
- |
400,000.00 |
200,000.00 |
|
Current Portion of
Long-term Liabilities |
471,994.70 |
- |
- |
|
Other Current Liabilities |
- |
1,044,291.51 |
873,900.13 |
|
|
|
|
|
|
Total Current Liabilities |
113,917,998.06 |
134,964,622.14 |
93,001,450.88 |
|
Long-term Loan |
586,765.80 |
- |
- |
|
Total Liabilities |
114,504,763.86 |
134,964,622.14 |
93,001,450.88 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 200,000 shares |
20,000,000.00 |
20,000,000.00 |
20,000,000.00 |
|
|
|
|
|
|
Capital Paid |
20,000,000.00 |
20,000,000.00 |
20,000,000.00 |
|
Retained Earning Unappropriated |
11,611,106.92 |
17,269,266.76 |
13,191,104.20 |
|
Total Shareholders' Equity |
31,611,106.92 |
37,269,266.76 |
33,191,104.20 |
|
Total Liabilities & Shareholders' Equity |
146,115,870.78 |
172,233,888.90 |
126,192,555.08 |
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
249,408,841.89 |
218,041,816.29 |
195,862,537.95 |
|
Other Income |
349,809.27 |
2,737,981.29 |
207,933.37 |
|
Total Revenues |
249,758,651.16 |
220,779,797.58 |
196,070,471.32 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
232,157,602.18 |
198,960,256.26 |
176,972,880.26 |
|
Selling Expenses |
6,423,885.58 |
5,706,363.97 |
5,058,208.42 |
|
Administrative Expenses |
9,544,603.09 |
9,133,421.73 |
8,127,756.38 |
|
Other Expenses |
4,146,892.86 |
- |
616,132.37 |
|
Total Expenses |
252,272,983.71 |
213,800,041.96 |
190,774,977.43 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income Tax |
[2,514,332.55] |
6,979,755.62 |
5,295,493.89 |
|
Financial Costs |
[2,433,327.29] |
[1,372,801.86] |
[1,191,870.24] |
|
Profit / [Loss] before Income Tax |
[4,947,659.84] |
5,606,953.76 |
4,103,623.65 |
|
Income Tax |
[710,500.00] |
[1,528,791.51] |
[1,235,400.13] |
|
|
|
|
|
|
Net Profit / [Loss] |
[5,658,159.84] |
4,078,162.25 |
2,868,223.52 |
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.26 |
1.26 |
1.33 |
|
QUICK RATIO |
TIMES |
0.67 |
0.58 |
0.62 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
86.29 |
108.60 |
91.17 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.71 |
1.27 |
1.55 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
105.31 |
168.25 |
135.76 |
|
INVENTORY TURNOVER |
TIMES |
3.47 |
2.17 |
2.69 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
96.49 |
130.74 |
107.21 |
|
RECEIVABLES TURNOVER |
TIMES |
3.78 |
2.79 |
3.40 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
60.90 |
155.20 |
97.06 |
|
CASH CONVERSION CYCLE |
DAYS |
140.90 |
143.79 |
145.91 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
93.08 |
91.25 |
90.36 |
|
SELLING & ADMINISTRATION |
% |
6.40 |
6.81 |
6.73 |
|
INTEREST |
% |
0.98 |
0.63 |
0.61 |
|
GROSS PROFIT MARGIN |
% |
7.06 |
10.01 |
9.75 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(1.01) |
3.20 |
2.70 |
|
NET PROFIT MARGIN |
% |
(2.27) |
1.87 |
1.46 |
|
RETURN ON EQUITY |
% |
(17.90) |
10.94 |
8.64 |
|
RETURN ON ASSET |
% |
(3.87) |
2.37 |
2.27 |
|
EARNING PER SHARE |
BAHT |
(28.29) |
20.39 |
14.34 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.78 |
0.78 |
0.74 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.62 |
3.62 |
2.80 |
|
TIME INTEREST EARNED |
TIMES |
(1.03) |
5.08 |
4.44 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
14.39 |
11.32 |
|
|
OPERATING PROFIT |
% |
(136.02) |
31.81 |
|
|
NET PROFIT |
% |
(238.74) |
42.18 |
|
|
FIXED ASSETS |
% |
43.96 |
(6.55) |
|
|
TOTAL ASSETS |
% |
(15.16) |
36.48 |
|
An annual sales growth is 14.39%. Turnover has increased from THB
|
Gross Profit Margin |
7.06 |
Impressive |
Industrial Average |
3.01 |
|
Net Profit Margin |
(2.27) |
Deteriorated |
Industrial Average |
0.58 |
|
Return on Assets |
(3.87) |
Deteriorated |
Industrial Average |
3.55 |
|
Return on Equity |
(17.90) |
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 7.06%. 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 -2.27%.
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 -3.87%.
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 -17.9%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
|
Current Ratio |
1.26 |
Satisfactory |
Industrial
Average |
1.60 |
|
Quick Ratio |
0.67 |
|
|
|
|
Cash Conversion Cycle |
140.90 |
|
|
|
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 1.26 times in 2013, the same figure
as in 2012, 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 0.67 times in 2013,
increase from 0.58 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 141 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
|
Debt Ratio |
0.78 |
Acceptable |
Industrial Average |
0.73 |
|
Debt to Equity Ratio |
3.62 |
Risky |
Industrial Average |
2.73 |
|
Times Interest Earned |
(1.03) |
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 -1.04 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 0.78 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
|
Fixed Assets Turnover |
86.29 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.71 |
Deteriorated |
Industrial
Average |
6.16 |
|
Inventory Conversion Period |
105.31 |
|
|
|
|
Inventory Turnover |
3.47 |
Deteriorated |
Industrial
Average |
12.03 |
|
Receivables Conversion Period |
96.49 |
|
|
|
|
Receivables Turnover |
3.78 |
Deteriorated |
Industrial
Average |
8.23 |
|
Payables Conversion Period |
60.90 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.78 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 168 days at the
end of 2012 to 105 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 2.17 times in year 2012 to 3.47 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.71 times and 1.27
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
DIAMOND INDUSTRY – INDIA
-
From time immemorial, India is well known in the world
as the birthplace for diamonds. It is difficult to trace the origin of
diamonds but history says that in the remote past, diamonds were mined only in
India. Diamond production in India can be traced back to almost 8th
Century B.C. India, in fact, remained undisputed leader till 18th
Century when Brazilian fields were discovered in 1725 followed by emergence of
S. Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was
possible only due to combination of the manufacturing skills of the Indian
workforce and the untiring and unflagging efforts of the Indian diamantaires,
supported by progressive Government policies.
-
The area of study of family owned diamond businesses
derives its importance from the huge conglomerate of family run organizations
which operate in the diamond industry since many generations.
-
Some of the basic traits of family run business
enterprises include spirit of entrepreneurship, mutual trust lowers transaction
costs, small, nimble and quick to react, information as a source of advantage
and philanthropy.
-
Family owned diamond businesses need to improve on
many fronts including higher standard of corporate governance, long-term
performance – focused strategies, modern management and technology.
-
Utmost caution is to be exercised while dealing with
some medium and large diamond traders which are usually engaged in fictitious
import – export, inter-company transactions, financially assisted by banks. In
the process, several public sector banks lost several hundred million rupees.
They mostly diverted borrowed money for diamond business into real estate and
capital markets.
-
Excerpts from Times of India dated 30th
October 2010 is as under –
-
Gem & Jewellery Export Promotion Council in its
statistical data has shown the export of polished diamonds to have increase by
28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in
February, 2012, India exported $ 1.84 billion worth of polished diamonds in
February 2013. A senior executive of GJEPC said, “Export of cut and polished
diamonds started falling month-wise after the imposition of 2 % of import duty
on the polished diamonds. But February, 2013 has given a new ray of hope to the
industry as the export of polished diamonds has actually increased by 28 %. It
means the industry is on the track of recovery and round tripping of
diamonds has stopped completely.” Demand has started coming from the US, the
UK, Japan and China. India’s polished diamond export is expected to cross $ 21
bn in 2013-14.
-
The banking sector has started exercising restraint
while following prudent risk management norms when lending money to gems and
jewellery sector. This follows the implementation of Basel III accord – a
global voluntary regulatory standard on bank capital adequacy, stress testing
and market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 62.15 |
|
|
1 |
Rs. 94.72 |
|
Euro |
1 |
Rs. 70.33 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
ASH |
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.