MIRA INFORM REPORT

Report No. :	303112
Report Date :	12.01.2015

IDENTIFICATION DETAILS

Name :	THAI PLASTIC INDUSTRIES CO., LTD.
Formerly Known As :	THAI PLASTIC INDUSTRIES LIMITED PARTNERSHIP
Registered Office :	174 Moo 4, Soi Sributr, Petchkasem Road, Omnoi, Kratumban, Samutsakorn 74130
Country :	Thailand
Financials (as on) :	31.12.2013
Date of Incorporation :	18.06.1971
Com. Reg. No.:	0745554000103
Legal Form :	Private Limited Company
Line of Business :	Subject is engaged in manufacturing, importing, exporting and distributing wide range of PVC additives and plastic chemicals for various industries,
No. of Employee :	350

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
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 – September 30, 2014

Country Name	Previous Rating (30.06.2014)	Current Rating (30.09.2014)
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 and address

THAI PLASTIC INDUSTRIES CO., LTD.

[FORMER: THAI PLASTIC INDUSTRIES LIMITED PARTNERSHIP]

SUMMARY

BUSINESS ADDRESS : 174 MOO 4, SOI SRIBUTR, PETCHKASEM ROAD,

OMNOI, KRATUMBAN,

SAMUTSAKORN 74130, THAILAND

TELEPHONE : [66] 2420-5578-80, 2420-5155-6

FAX : [66] 2420-5577, 2420-0709

E-MAIL ADDRESS ; sales@tpilp.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 1971

REGISTRATION NO. : 0745554000103 [Former : 0103514010101]

TAX ID NO. : 3752000618

CAPITAL REGISTERED : BHT. 60,000,000

CAPITAL PAID-UP : BHT. 60,000,000

SHAREHOLDER’S PROPORTION : THAI : 75.00%

INDIAN : 25.00%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. MAKWAN CHAILERTBORISUTH, THAI

MANAGING DIRECTOR

NO. OF STAFF : 350

LINES OF BUSINESS : PVC ADDITIVES AND PLASTIC CHEMICALS

MANUFACTURER, IMPORTER, DISTRIBUTOR

AND EXPORTER

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 June 18, 1971 as a limited partnership under the name style THAI PLASTIC INDUSTRIES LIMITED PARTNERSHIP by Thai-Indian partners, with the business objective to manufacture, import and distribute wide range of PVC additives and plastic chemicals for various industries of both domestic and international markets.

On January 10, 2011, its status was converted to private limited company, under the name THAI PLASTIC INDUSTRIES CO., LTD. It currently employs approximately 350 staff.

The subject’s registered address is 174 Moo 4, Soi Sributr, Petchkasem Rd., Omnoi, Kratumban, Samutsakorn 74130, and this is the subject’s current operation address.

BROAD OF DIRECTOR

Name	Nationality	Age
Mr. Makwan Chailertborisuth	Thai	77
Mr. Yaswinder Palsingh	Thai	62
Mr. Kartar Singh	Indian	85
Mr. Harinder Palsingh Narang	Thai	56
Mr. Raja Deepsingh Jwala	Thai	47

AUTHORIZED PERSON

One of the above directors signs on behalf of company with seal affixed.

MANAGEMENT

Mr. Makwan Chailertborisuth is the Managing Director.

He is Thai nationality with the age of 77 years old.

Mr. Yaswinder Palsingh is the Production and Factory Manager.

He is Thai nationality with the age of 62 years old.

BUSINESS OPERATIONS

The subject’s main business is engaged in manufacturing, importing, exporting and distributing wide range of PVC additives and plastic chemicals for various industries, which can be divided into 5 main industrial divisions comprising, Printing division, PP bag manufacturing division, Raincoat manufacturing division, PVC recycle division and PVC table cloth division. The products are as follows:

1. Manufacturing products

• High efficient lubricant of PVC
• Rare earth compound stabilizer
• Ca-Zn non-toxic compound stabilizer
• Stabilizers for PVC pipes, windows and profile
• Stabilizers for Cable Insulation
• Liquid Stabilizers especially for PVC films
• Zinc Stearate
• Barium Stearate
• Lead Stearate
• Dibasic Lead Stearate
• Tri Basic Lead Sulphate
• Zinc oxide 99%, 99.5% and 99.7%
• Yinyl and PVC flooring
• Plastic sheet
• PVC tablecloth

2. Import products

• Acetic acid
• Stearic acid
• Litharge
• Barium hydroxide
• Calcium hydroxide
• Calcium/ Zinc/ Barium/ Lead Octoate
• Magnesium Oxide
• Di Basic Lead Sulphate
• Paraffin wax
• PE wax
• Cadmium Octoate
• DiPhenol Isodeeyl Phosphate DPDP
• Twist Nonyl Phenol Phosphate - TNPP
• Bisphenol-A
• Rhodiast AB powder/liquid
• Chlorinated Paraffin 52%
• Rutile BLR
• Epoxidiszed soybean oil
• Titanium dioxide
• Alcamizer
• PVC resin
• DOP [Dioctyl Phthalate]
• DINP [Disononyl Phthalate]
• DOA [Bis(2-ethylhexyl) adipate]
• TOTM [Tri Octyl Trimellitate]
• etc.

The subject is also engaged in manufacturing and distributing of PP plastic sacks for agricultural industry.

PURCHASE

Some of raw chemicals are purchased from local suppliers.

IMPORT

Plastic chemicals are imported from India, Japan, Germany, Italy, Spain, Australia, France, Singapore, Republic of China and Taiwan.

MAJOR SUPPLIERS

Bayer AG. : German

BASF [Thai] Ltd. : Thailand

SALES

80% of the products is exported to Africa, Indonesia, India, Singapore, Malaysia, Philippines, Republic of China, Cambodia, Myanmar, Laos, Vietnam, U.S.A., Netherlands, Australia, Hong Kong and other European countries, the remaining 20% is sold locally.

RELATED AND AFFILIATED COMPANY

Thai Nippon Plastic Ltd.

Business Type : Manufacturer and distributor of PVC film products

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 T/T.

Exports are against T/T.

BANKING

The Siam Commercial Bank Public Co., Ltd.

EMPLOYMENT

The subject employs approximately 350 staff.

LOCATION DETAILS

The premise is owned for administrative office and factory at the heading address. Premise is located in provincial.

COMMENT

The subject was formed in 1971 as a manufacturer and distributor of PVC additives and plastic chemicals. Its products have been used in various industries. Its business performance is in line with demand of the products from various industries.

The subject’s business performance in 2013 has grown appropriately with demand from industrial expansion.

FINANCIAL INFORMATION

The capital was registered at Bht. 8,000,000 which were carried by 4 persons as followed:

Name Amount

Mr. Makwan Chailertborisuth Bht. 3,600,000 [Unlimited Partner]

Mr. Yaswinder Palsingh Bht. 1,200,000 [Unlimited Partner]

Mr. Ajit Singh Bht. 2,000,000

Mr. Harinder Palsingh Narang Bht. 1,200,000

In 2010, the capital was increased to Bht. 60,000,000 which were carried by 9 persons as follows:

Mr. Makwan Chailertborisuth Bht. 11,250,000 [Unlimited Partner]

Mr. Yaswinder Palsingh Bht. 5,625,000 [Unlimited Partner]

Mr. Ajit Singh Bht. 9,375,000

Mr. Harinder Palsingh Narang Bht. 5,625,000

Mr. Kartar Singh Bht. 5,625,000

Mr. Sukhvinder Palsingh Narang Bht. 3,750,000

Mr. Raja Deepsingh Jwala Bht. 7,500,000

Mr. Munmitrsingh Chailertborisuth Bht. 7,500,000

Mr. Rachen Palsingh Bht. 3,750,000

The capital was registered at Bht. 60,000,000 divided into 600,000 shares of Bht. 100 each with fully paid.

MAJOR SHAREHOLDERS LISTED: [as at April 30, 2014]

NAME	HOLDING	%
Mr. Makwan Chailertborisuth Nationality: Thai Address : 174 Moo 4, T. Omnoi, A. Kratumban, Samutsakorn	112,500	18.75
Mr. Ajit Singh Nationality: Indian Address : 19 Somdejchaopraya Rd., Klongsan, Bangkok	93,750	15.62
Mr. Raja Deepsingh Jwala Nationality: Thai Address : 174 Moo 4, T. Omnoi, A. Kratumban, Samutsakorn	75,000	12.50
Mr. Munmitrsingh Chailertborisuth Nationality: Thai Address : 174 Moo 4, T. Omnoi, A. Kratumban, Samutsakorn	75,000	12.50
Mr. Yaswinder Palsingh Nationality: Thai Address : 158/2 Sukhumvit Rd., Watana, Bangkok	56,250	9.37
Mr. Harinder Palsingh Narang Nationality: Thai Address : 51/38 Sukhumvit Rd., Klongteoy, Bangkok	56,250	9.37
Mr. Kartar Singh Nationality: Indian Address : 158/1 Sukhumvit Rd., Watana, Bangkok	56,250	9.37
Mr. Sukhvinder Palsingh Narang Nationality: Thai Address : 339 Jakkapetch Rd., Wangburapapirom, Bangkok	37,500	6.26
Mr. Rajan Pal Singh Nationality: Thai Address : 158/2 Sukhumvit Rd., Klongteoy, Watana, Bangkok	37,500	6.26

Total Shareholders : 9

Share Structure

[as at April 30, 2014]

Nationality	Shareholders	No. of Share	% Shares
Thai	7	450,000	75.00
Foreign - Indian	2	150,000	25.00
Total	9	600,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

Mr. Poonsak Saengsan No. 1910

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2013, 2012 & 2011 were:

ASSETS

Current Assets	2013	2012	2011 [Adjusted]
Cash and Cash Equivalents	16,768,402.74	101,969,268.46	11,438,074.49
Trade Account & Other Receivable	818,457,645.21	656,830,117.81	612,308,404.92
Other Receivable - Refundable Value Added Tax	20,185,610.79	18,064,805.58	7,869,214.59
Inventories	195,441,611.10	202,625,313.79	116,574,218.93
Other Current Assets	301,726.45	375,630.63	12,470,258.46
Total Current Assets	1,051,154,996.29	979,865,136.27	760,660,171.39
Fixed Assets	49,379,111.30	40,562,632.14	39,102,015.48
Cash at Bank pledged as a Collateral	16,078,645.41	13,813,681.10	13,566,036.04
Long-term Deposit	38,336.45	38,336.45	98,336.45
Total Assets	1,116,651,089.45	1,034,279,785.96	813,426,559.36

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

Current Liabilities	2013	2012	2011 [Adjusted]
Bank Overdraft & Short-term Loan from Bank	362,909,963.71	348,043,564.84	203,664,727.17
Trade Account & Other Payable	535,068,450.84	507,276,508.63	468,273,525.64
Current Portion of Long-term Liabilities - Loan from Bank	-	5,040,000.00	-
- Finance Lease Contract Payable	270,923.84	279,513.68	312,414.00
Other Current Liabilities	8,118,298.87	9,250,552.70	6,619,660.12
Total Current Liabilities	906,367,637.26	869,890,139.85	678,870,326.93
Long-term Loan from Bank	39,788,503.02	9,960,000.00	-
Finance Lease Contract Payable	556,906.16	-	279,513.68
Total Liabilities	946,713,046.44	879,850,139.85	679,149,840.61
Shareholders’ Equity
Share capital : Baht 100 par value authorized, issued and fully paid share capital 600,000 shares	60,000,000.00	60,000,000.00	60,000,000.00
Capital Paid	60,000,000.00	60,000,000.00	60,000,000.00
Retained Earning - Unappropriated	109,938,043.01	94,429,646.11	74,276,718.75
Total Shareholders’ Equity	169,938,043.01	154,429,646.11	134,276,718.75
Total Liabilities & Shareholders’ Equity	1,116,651,089.45	1,034,279,785.96	813,426,559.36

PROFIT & LOSS ACCOUNT

Revenue	2013	2012	2011 [Adjusted]
Sales Income	2,234,995,730.76	2,110,764,420.61	2,126,996,789.81
Transportation Income	15,767,127.49	18,802,288.77	15,716,303.61
Tax Compensation from Export	3,434,539.80	1,691,318.32	7,223,634.02
Compensation from Flood	-	-	9,855,379.52
Gain on Disposal of Assets	34,749.30	-	-
Gain on Exchange Rate	-	10,152,746.71	-
Interest Income	402,155.91	404,787.01	352,229.62
Other Income	485,969.75	292,667.39	967,967.86
Total Revenues	2,255,120,273.01	2,142,108,228.81	2,161,112,304.44
Expenses
Cost of Goods Sold	2,143,397,433.78	2,040,815,753.59	2,080,879,224.24
Selling Expenses	30,395,915.17	34,209,573.59	30,001,890.16
Administrative Expenses	14,469,148.07	18,396,727.68	11,011,652.05
Total Expenses	2,188,262,497.02	2,093,422,054.86	2,121,892,766.45
Profit / Loss] before Financial Cost & Income Tax	66,857,775.99	48,686,173.95	39,219,537.99
Loss on Exchange Rate	[13,023,051.67]	-	-
Financial Cost	[29,315,304.62]	[18,944,499.47]	[17,494,491.76]
Profit / [Loss] before Income Tax	24,519,419.70	29,741,674.48	21,725,046.23
Income Tax	[6,268,069.80]	[9,588,747.12]	[8,288,847.10]
Net Profit / [Loss]	18,251,349.90	20,152,927.36	13,436,199.13

FINANCIAL ANALYSIS

ITEM	UNIT	2013	2012	2011
LIQUIDITY RATIO
CURRENT RATIO	TIMES	1.16	1.13	1.12
QUICK RATIO	TIMES	0.94	0.89	0.93
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	45.58	52.50	54.80
TOTAL ASSETS TURNOVER	TIMES	2.02	2.06	2.63
INVENTORY CONVERSION PERIOD	DAYS	33.28	36.24	20.45
INVENTORY TURNOVER	TIMES	10.97	10.07	17.85
RECEIVABLES CONVERSION PERIOD	DAYS	132.73	112.58	104.30
RECEIVABLES TURNOVER	TIMES	2.75	3.24	3.50
PAYABLES CONVERSION PERIOD	DAYS	91.12	90.73	82.14
CASH CONVERSION CYCLE	DAYS	74.89	58.09	42.61
PROFITABILITY RATIO
COST OF GOODS SOLD	%	95.23	95.83	97.11
SELLING & ADMINISTRATION	%	1.99	2.47	1.91
INTEREST	%	1.30	0.89	0.82
GROSS PROFIT MARGIN	%	4.96	4.76	3.74
NET PROFIT MARGIN BEFORE EX. ITEM	%	2.97	2.29	1.83
NET PROFIT MARGIN	%	0.81	0.95	0.63
RETURN ON EQUITY	%	10.74	13.05	10.01
RETURN ON ASSET	%	1.63	1.95	1.65
EARNING PER SHARE	BAHT	30.42	33.59	22.39
LEVERAGE RATIO
DEBT RATIO	TIMES	0.85	0.85	0.83
DEBT TO EQUITY RATIO	TIMES	5.57	5.70	5.06
TIME INTEREST EARNED	TIMES	2.28	2.57	2.24
ANNUAL GROWTH
SALES GROWTH	%	5.69	(0.61)
OPERATING PROFIT	%	37.32	24.14
NET PROFIT	%	(9.44)	49.99
FIXED ASSETS	%	21.74	3.74
TOTAL ASSETS	%	7.96	27.15

ANNUAL GROWTH : IMPRESSIVE

An annual sales growth is 5.69%. Turnover has increased from THB 2,129,566,709.38 in 2012 to THB 2,250,762,858.25 in 2013. While net profit has decreased from THB 20,152,927.36 in 2012 to THB 18,251,349.90 in 2013. And total assets has increased from THB 1,034,279,785.96 in 2012 to THB 1,116,651,089.45 in 2013.

PROFITABILITY : ACCEPTABLE

PROFITABILITY RATIO

Gross Profit Margin	4.96	Deteriorated	Industrial Average	18.97
Net Profit Margin	0.81	Deteriorated	Industrial Average	1.83
Return on Assets	1.63	Deteriorated	Industrial Average	3.69
Return on Equity	10.74	Impressive	Industrial Average	9.75

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 4.96%. 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 0.81%. 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 1.63%.

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. Return on Equity ratio is 10.74%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient profit in a dominant position within its industry.

Trend of the average competitors in the same industry for last 5 years

Return on Assets Downtrend

Return on Equity Downtrend

LIQUIDITY : ACCEPTABLE

LIQUIDITY RATIO

Current Ratio	1.16	Satisfactory	Industrial Average	1.44
Quick Ratio	0.94
Cash Conversion Cycle	74.89

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 1.16 times in 2013, increased from 1.13 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 0.94 times in 2013, increased from 0.89 times, by excluding inventory, the company may have problems meeting current liabilities.

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 75 days.

Trend of the average competitors in the same industry for last 5 years

Current Ratio Uptrend

LEVERAGE : ACCEPTABLE

LEVERAGE RATIO

Debt Ratio	0.85	Acceptable	Industrial Average	0.62
Debt to Equity Ratio	5.57	Risky	Industrial Average	1.61
Times Interest Earned	2.28	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 2.29 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 0.85 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 : IMPRESSIVE

ACTIVITY RATIO

Fixed Assets Turnover	45.58	Impressive	Industrial Average	-
Total Assets Turnover	2.02	Satisfactory	Industrial Average	2.02
Inventory Conversion Period	33.28
Inventory Turnover	10.97	Impressive	Industrial Average	6.41
Receivables Conversion Period	132.73
Receivables Turnover	2.75	Acceptable	Industrial Average	4.15
Payables Conversion Period	91.12

The company's Account Receivable Ratio is calculated as 2.75 and 3.24 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 decreased from 2012. 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 decreased from 36 days at the end of 2012 to 33 days at the end of 2013. This represents a positive trend. And Inventory turnover has increased from 10.07 times in year 2012 to 10.97 times in year 2013.

The company's Total Asset Turnover is calculated as 2.02 times and 2.06 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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.62.40
UK Pound	1	Rs.94.17
Euro	1	Rs.73.61

INFORMATION DETAILS

Analysis Done by :	SUM
Report Prepared by :	NIT

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%)

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