MIRA INFORM REPORT
|
Report No. : |
332122 |
|
Report Date : |
20.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
K.G.K. DIAMONDS CO., LTD. |
|
|
|
|
Registered Office : |
29th Floor, Gems
Tower, 1249/196 Charoenkrung Road,
Suriyawongse, Bangrak, Bangkok
10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
22.03.2001 |
|
|
|
|
Com. Reg. No.: |
0105544028744 |
|
|
|
|
Legal Form : |
private limited company
|
|
|
|
|
Line of Business : |
The subject is engaged
in trading business,
e.g. importing, distributing and
re-exporting wide range
of diamonds and
gemstones, as well
as exporting various
kinds of local
gemstones, diamonds and
jewelry products. |
|
|
|
|
No. of Employee : |
9 |
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 : |
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 |
A2 |
A2 |
|
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 has
historically had a strong economy due in part to 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 4 million migrant workers
from neighboring countries, and faces labor shortages. Following the May 2014
coup d’�tat, 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 and address
K.G.K. DIAMONDS
CO., LTD.
SUMMARY
BUSINESS ADDRESS : 29th
FLOOR, GEMS TOWER,
1249/196
CHAROENKRUNG ROAD, SURIYAWONGSE,
BANGRAK, BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2267-4528-9,
2267-4629
FAX : [66] 2267-4530
E-MAIL ADDRESS : kgk.diabkk@kgkmail.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2001
REGISTRATION NO. : 0105544028744
TAX ID NO. : 3030247643
CAPITAL REGISTERED : BHT.
60,000,000
CAPITAL PAID-UP : BHT.
60,000,000
SHAREHOLDER’S PROPORTION : THAI
: 99.96%
INDIAN
: 0.04%
FISCAL YEAR CLOSING DATE : MARCH 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. HEMCHAND SURANA,
INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 9
LINES OF BUSINESS : DIAMONDS AND
GEMSTONES
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 March
22, 2001 as
a private limited
company under the
name style K.G.K. DIAMONDS CO.,
LTD., by Thai and
Indian groups, with
the objective to
be engaged in
diamond trading business.
It currently employs
9 staff.
Presently, the subject
is a wholly
owned subsidiary of
K.G.K. Holdings [Thailand]
Co., Ltd., which
is a member
of KGK group
of companies, the
leading in diamonds
and jewelry manufacturing
and trading business
in India.
The subject’s registered address is 29th Flr., Gems Tower,
1249/196 Charoenkrung Rd., Suriyawongse, Bangrak, Bangkok 10500, and this
is the subject’s current operation address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Hemchand Surana |
|
Indian |
53 |
|
Mr. Sanjay Navrattan Kothari |
|
Indian |
51 |
AUTHORIZED
PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Hemchand Surana
is the Managing
Director.
He is Indian
nationality with the
age of 53 years
old.
BUSINESS
OPERATIONS
The subject is engaged
in trading business,
e.g. importing, distributing
and re-exporting wide
range of diamonds
and gemstones, as
well as exporting
various kinds of
local gemstones, diamonds
and jewelry products.
PURCHASE
80% of the
products is imported
from India, Republic
of China, Russia
and South Africa,
and the remaining
20% is purchased
from local suppliers.
MAJOR
SUPPLIERS
KGK Enterprises Pvt.
Ltd. : India
Star Rough Diamonds
Pty. Ltd. : South Africa
KGK Diamonds [I]
Pvt. Ltd. : India
KGK Gems : India
SALES
The products are
sold to traders
and manufacturers both
local and international, mainly Hong Kong, United States of America,
Japan, India, Singapore,
Republic of China,
South Africa, Middle
East and European
countries.
RELATED
AND AFFILIATED COMPANY
K.G.K. Gems Co., Ltd.
Business Type :
Importer and exporter
of diamonds and
gemstones
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
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject employs
9 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 diamond trader. Most
of the products
are re-exported to
overseas dealers, and some of
the products are supplied to
leading and famous
jewelry manufactures in
domestic market. Subject
reported an outstanding
sales in 2014, while current demand has slowing
down in Asian
markets caused by
China economy slowdown.
Despite consumption improvement
in US and
Middle East markets since
the previous year, the
subject’s business growth
is at slow pace.
FINANCIAL
INFORMATION
The capital was
registered at Bht.
2,000,000 divided into
20,000 shares of
Bht. 100 each.
The capital was
increased later as
following:
Bht. 10,000,000
on October 6,
2003
Bht. 14,000,000
on November 10,
2004
Bht. 16,000,000
on December 15,
2004
Bht. 24,000,000
on January 21,
2006
Bht. 49,000,000
on February 10,
2015
Bht. 60,000,000
on March 3,
2015
The latest registered
capital was increased
to Bht. 60,000,000 divided
into 600,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
[as at
February 13, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
K.G.K. Holdings [Thailand]
Co., Ltd. Nationality: Thai Address : 1249/199
Charoenkrung Road,
Suriyawongse, Bangkok |
599,800 |
99.96 |
|
Mr. Hemchand Surana Nationality: Indian Address : Jaipur,
India |
100 |
0.02 |
|
Mr. Hemant Sharma Nationality: Indian Address : 31/9 Trok
Vaitee, Silom, Bangrak,
Bangkok |
100 |
0.02 |
Total Shareholders : 3
Share Structure
[as at February 13,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
599,800 |
99.96 |
|
Foreign-Indian |
2 |
200 |
0.04 |
|
Total |
3 |
600,000 |
100.00 |
NAME
OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Nongnuch Ouitrakul No. 2241
BALANCE
SHEET [BAHT]
The latest financial
figures published for
March 31, 2014,
2013 & 2012
were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash in Hand
and at Bank |
20,710,584.97 |
10,392,645.25 |
5,669,735.18 |
|
Trade Accounts and Other Receivable |
869,452,656.19 |
638,693,339.51 |
400,983,341.80 |
|
Inventories |
1,284,059,942.53 |
881,799,782.13 |
377,056,825.93 |
|
Other Current Assets |
165.31 |
- |
510,000.00 |
|
|
|
|
|
|
Total Current Assets
|
2,174,223,349.00 |
1,530,885,766.89 |
784,219,902.91 |
|
|
|
|
|
|
Long-term Investment |
998,000.00 |
510,000.00 |
- |
|
Fixed Assets |
485,504.74 |
582,082.54 |
704,018.17 |
|
Total Assets |
2,175,706,853.74 |
1,531,977,849.43 |
784,923,921.08 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Accrued Tax |
- |
- |
4,823,797.06 |
|
Trade Accounts and Other Payable |
1,561,249,710.00 |
972,321,726.33 |
614,028,268.51 |
|
Accrued Expenses |
- |
- |
380,697.22 |
|
Short-term Loan |
325,814,000.00 |
294,476,000.00 |
92,965,500.00 |
|
|
|
|
|
|
Total Current Liabilities |
1,887,063,710.00 |
1,266,797,726.33 |
712,198,262.79 |
|
Long-term Loan |
187,347,655.00 |
187,347,655.00 |
13,944,825.00 |
|
Total Liabilities |
2,074,411,365.00 |
1,454,145,381.33 |
726,143,087.79 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 240,000 shares |
24,000,000.00 |
24,000,000.00 |
24,000,000.00 |
|
|
|
|
|
|
Capital Paid |
24,000,000.00 |
24,000,000.00 |
24,000,000.00 |
|
Retained Earning - Unappropriated |
77,295,488.74 |
53,832,468.10 |
34,780,833.29 |
|
Total Shareholders' Equity |
101,295,488.74 |
77,832,468.10 |
58,780,833.29 |
|
Total Liabilities &
Shareholders' Equity |
2,175,706,853.74 |
1,531,977,849.43 |
784,923,921.08 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
1,739,736,148.20 |
1,280,978,928.11 |
1,124,794,929.25 |
|
Other Income |
15,785.65 |
12,522.84 |
- |
|
Interest Income |
- |
55,301,630.80 |
13,274.97 |
|
Total Revenues |
1,739,751,933.85 |
1,336,293,081.75 |
1,124,808,204.22 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,555,705,987.36 |
1,268,928,526.92 |
1,091,365,832.43 |
|
Selling &
Administrative Expenses |
19,566,284.08 |
22,894,354.11 |
14,954,834.04 |
|
Loss on Exchange Rate |
123,563,876.54 |
- |
- |
|
Total Expenses |
1,698,836,147.98 |
1,291,822,881.03 |
1,106,320,666.47 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income Tax
|
40,915,785.87 |
44,470,200.72 |
18,487,537.75 |
|
Financial Cost |
[11,420,951.64] |
[18,427,998.94] |
- |
|
Gain on Exchange Rate |
- |
- |
2,166,096.28 |
|
Interest Expenses |
- |
- |
[3,075,086.42] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax |
29,494,834.23 |
26,042,201.78 |
17,578,547.61 |
|
Income Tax |
[6,031,813.59] |
[6,990,566.97] |
[5,273,731.22] |
|
|
|
|
|
|
Net Profit / [Loss] |
23,463,020.64 |
19,051,634.81 |
12,304,816.39 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.15 |
1.21 |
1.10 |
|
QUICK RATIO |
TIMES |
0.47 |
0.51 |
0.57 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3,583.36 |
2,200.68 |
1,597.68 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.80 |
0.84 |
1.43 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
301.27 |
253.64 |
126.10 |
|
INVENTORY TURNOVER |
TIMES |
1.21 |
1.44 |
2.89 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
182.41 |
181.99 |
130.12 |
|
RECEIVABLES TURNOVER |
TIMES |
2.00 |
2.01 |
2.81 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
366.30 |
279.68 |
205.36 |
|
CASH CONVERSION CYCLE |
DAYS |
117.38 |
155.95 |
50.87 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
89.42 |
99.06 |
97.03 |
|
SELLING & ADMINISTRATION |
% |
1.12 |
1.79 |
1.33 |
|
INTEREST |
% |
0.66 |
1.44 |
0.27 |
|
GROSS PROFIT MARGIN |
% |
10.58 |
5.26 |
2.97 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.35 |
3.47 |
1.64 |
|
NET PROFIT MARGIN |
% |
1.35 |
1.49 |
1.09 |
|
RETURN ON EQUITY |
% |
23.16 |
24.48 |
20.93 |
|
RETURN ON ASSET |
% |
1.08 |
1.24 |
1.57 |
|
EARNING PER SHARE |
BAHT |
97.76 |
79.38 |
51.27 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.95 |
0.95 |
0.93 |
|
DEBT TO EQUITY RATIO |
TIMES |
20.48 |
18.68 |
12.35 |
|
TIME INTEREST EARNED |
TIMES |
3.58 |
2.41 |
6.01 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
35.81 |
13.89 |
|
|
OPERATING PROFIT |
% |
(7.99) |
140.54 |
|
|
NET PROFIT |
% |
23.15 |
54.83 |
|
|
FIXED ASSETS |
% |
(16.59) |
(17.32) |
|
|
TOTAL ASSETS |
% |
42.02 |
95.18 |
|
ANNUAL GROWTH : SATISFACTORY
An annual sales growth is 35.81%. Turnover has increased from THB
PROFITABILITY : SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
10.58 |
Acceptable |
Industrial Average |
16.41 |
|
Net Profit Margin |
1.35 |
Satisfactory |
Industrial Average |
1.41 |
|
Return on Assets |
1.08 |
Deteriorated |
Industrial Average |
3.02 |
|
Return on Equity |
23.16 |
Impressive |
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 10.58%. 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 1.35%.
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 1.08%.
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 23.16%, 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 Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.15 |
Acceptable |
Industrial Average |
1.66 |
|
Quick Ratio |
0.47 |
|
|
|
|
Cash Conversion Cycle |
117.38 |
|
|
|
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 1.15 times in 2014, 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 0.47 times in 2014,
decreased from 0.51 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 118 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.95 |
Acceptable |
Industrial Average |
0.60 |
|
Debt to Equity Ratio |
20.48 |
Risky |
Industrial Average |
1.49 |
|
Times Interest Earned |
3.58 |
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 3.59 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 0.95 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 : ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
3,583.36 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.80 |
Deteriorated |
Industrial Average |
2.14 |
|
Inventory Conversion Period |
301.27 |
|
|
|
|
Inventory Turnover |
1.21 |
Deteriorated |
Industrial Average |
3.44 |
|
Receivables Conversion Period |
182.41 |
|
|
|
|
Receivables Turnover |
2.00 |
Deteriorated |
Industrial Average |
4.11 |
|
Payables Conversion Period |
366.30 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.00 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 254 days at the
end of 2013 to 301 days at the end of 2014. This represents a negative trend.
And Inventory turnover has decreased from 1.44 times in year 2013 to 1.21 times
in year 2014.
The company's Total Asset Turnover is calculated as 0.8 times and 0.84
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
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.63.49 |
|
|
1 |
Rs.99.43 |
|
Euro |
1 |
Rs.69.14 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
SDA |
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%)a
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.