MIRA INFORM REPORT
|
Report No. : |
332950 |
|
Report Date : |
23.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
CHALONG LATEX INDUSTRY CO., LTD. |
|
|
|
|
Registered Office : |
75/1 Moo 8,
Chana-Nongjik Road, T. Banna, A.
Chana, Songkhla 90130 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
18.06.1986 |
|
|
|
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Com. Reg. No.: |
0905529000322 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject is
engaged in manufacturing, exporting and distributing natural
rubber products, especially STR
products, such as STR 5CV50, STR 5CV60,
STR 5L, STR XL,
skim block and
natural latex concentrated, comprising
centrifuged latex high
ammonia 60% DRC,
centrifuged latex medium
ammonia 60% DRC
and centrifuged latex
low ammonia 60%
DRC. |
|
|
|
|
No. of Employee : |
110 |
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 – 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
CHALONG LATEX INDUSTRY CO., LTD.
SUMMARY
BUSINESS ADDRESS : 75/1 MOO 8,
CHANA-NONGJIK ROAD, T. BANNA,
A.
CHANA, SONGKHLA 90130,
THAILAND
TELEPHONE : [66] 74
207-656-9
FAX : [66] 74
207-655
E-MAIL ADDRESS : clitex@loxinfo.co.th
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1986
REGISTRATION NO. : 0905529000322
TAX ID NO. : 3901006997
CAPITAL REGISTERED : BHT.
70,000,000
CAPITAL PAID-UP : BHT.
70,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
CHALONG TECHAPATRAKUL, THAI
MANAGING DIRECTOR
NO. OF STAFF : 110
LINES OF BUSINESS : NATURAL RUBBER
AND LATEX PRODUCTS
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 June 18, 1986
as a private
limited company under the registered name
CHALONG LATEX INDUSTRY
CO., LTD., by
Thai groups, with the
business objective to
manufacture natural rubber
and latex products
for both export
and domestic markets,
with BOI promoted
by Board of
Investment [BOI]. It currently
employs approximately 110 staff.
The subject achieved
the standard ISO 9001 : 2000 certificate
for quality management
system and ISO 14000
for environmental management
system.
The subject’s registered address is 75/1 Moo 8,
Chana-Nongjik Rd., T. Banna, A. Chana, Songkhla
90130, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Chalong Techapatrakul |
[x] |
Thai |
71 |
|
Mrs. Ladawan Techapatrakul |
[x] |
Thai |
72 |
|
Mr. Abhichart Techapatrakul |
[x] |
Thai |
42 |
|
Mr. Chaiyuth Techapatrakul |
|
Thai |
37 |
|
Mrs. Kobkul Suthamprachak |
|
Thai |
56 |
|
Mr. Prayoon Suthamprachak |
[x] |
Thai |
67 |
AUTHORIZED
PERSON
Any two of
the mentioned directors
[x] can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Chalong Techapatrakul is
the Managing Director.
He is Thai
nationality with the
age of 71
years old.
Mrs. Ladawan Techapatrakul is
the Deputy Managing
Director.
She is Thai
nationality with the
age of 72
years old.
Mr. Abhichart Techapatrakul is
the International Marketing
Manager.
He is Thai
nationality with the
age of 42
years old.
Mr. Chaiyuth Techapatrakul is
the Chief of
Exports.
He is Thai
nationality with the
age of 37
years old.
BUSINESS
OPERATIONS
The subject is
engaged in manufacturing, exporting and distributing natural
rubber products, especially STR
products, such as STR 5CV50, STR 5CV60,
STR 5L, STR XL,
skim block and
natural latex concentrated,
comprising centrifuged latex
high ammonia 60%
DRC, centrifuged latex
medium ammonia 60%
DRC and centrifuged
latex low ammonia
60% DRC.
The products are supplied to
various industries such as general rubber
products, industrial gloves,
shoe sole, furniture,
automobile parts.
PRODUCTION
CAPACITY
Natural Latex Concentrated
: 2,000 tons
per month
STR products : 1,500 tons
per month
Skim Block
: 120 tons
per month
PURCHASE
100% of natural
latex and chemicals
are purchased from
local planters and
suppliers.
SALES
90% of the products is exported to
Indonesia, Republic of
China, Hong Kong, Singapore, U.S.A.,
Japan, India, Vietnam,
Canada, Taiwan, Pakistan,
Mexico, Columbia and
the countries in
Middle East and
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.
Exports are against
L/C or T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
Thanachart Bank Public
Co., Ltd.
EMPLOYMENT
The subject employs
approximately 110 office
staff and factory
workers.
LOCATION
DETAILS
The premise is
owned for administrative office
and factory on
320,000 square meters
of land at
the heading address.
Premise is located
in provincial, in
the Southern region.
COMMENT
Subject is a manufacturer, distributor and exporter of
rubber and latex products. The
products are for
industrial users. The subject
reported slow down sales revenue
since 2013 from
decreasing demand of
rubbers as well
as a low
price of natural
rubber.
The products have been used in
various industries. Subject’s performance was
related with the
condition of local
consumption, which is
expanded slowly.
FINANCIAL
INFORMATION
The capital was
registered at Bht. 2,000,000
divided into 200 shares of
Bht. 10,000 each with
fully paid.
The capital was
increased later as
follows:
Bht. 10,000,000
on June 3,
1987
Bht. 20,000,000
on October 12,
1994
Bht. 30,000,000
on September 10,
1996
Bht. 40,000,000
on July 29,
2004
Bht. 50,000,000
on October 3,
2007
Bht. 70,000,000
on March 30,
2010
The latest registered
capital was increased
to Bht. 70 million,
divided into 7,000
shares of Bht. 10,000
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
[as at April
30, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Ladawan Techapatrakul Nationality: Thai Address : 22
Moo 2, T. Banna,
A. Chana, Songkhla |
2,895 |
41.36 |
|
Mr. Chalong Techapatrakul Nationality: Thai Address : 22
Moo 2, T. Banna,
A. Chana, Songkhla |
2,700 |
38.57 |
|
Mr. Abhichart Techapatrakul Nationality: Thai Address : 76
Moo 8, T. Banna, A. Chana,
Songkhla |
770 |
11.00 |
|
Mr. Chaiyuth Techapatrakul Nationality: Thai Address : 75/1
Moo 8, T. Banna, A. Chana,
Songkhla |
608 |
8.69 |
|
Mr. Kasem Techapatrakul Nationality: Thai Address : 59/2
Moo 3, T. Banna, A. Chana,
Songkhla |
10 |
0.14 |
|
Mr. Prayoon Suthamprachak Nationality: Thai Address : 32
Srinil 1 Rd., T. Hadyai, A. Hadyai, Songkhla |
10 |
0.14 |
|
Mrs. Kobkul Suthamprachak Nationality: Thai Address : 2
Yala Rd., T. Sataeng,
A. Muang, Yala |
7 |
0.10 |
Total Shareholders : 7
Share Structure
[as at April
30, 2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
7,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
7,000 |
100.00 |
NAME
OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT
NO.
Ms. Somkaew
Runglertkriengkrai No. 2715
BALANCE
SHEET [BAHT]
The latest financial
figures published for
December 31, 2014, 2013 & 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalent |
17,382,145.84 |
1,461,732.32 |
7,031,020.56 |
|
Investment - Fixed Account |
12,606,196.07 |
25,314,307.40 |
22,963,730.85 |
|
Trade Accounts and Other Receivable |
56,163,668.40 |
58,747,716.17 |
48,227,925.23 |
|
Short-term Lending to
Related Person |
6,180,000.00 |
3,000,000.00 |
19,257,061.90 |
|
Inventories |
55,716,757.68 |
96,933,882.74 |
63,090,771.51 |
|
Other Current Assets |
5,141,126.72 |
9,197,001.28 |
2,492,641.58 |
|
|
|
|
|
|
Total Current Assets
|
153,189,894.71 |
194,654,639.91 |
163,063,151.63 |
|
|
|
|
|
|
Other Long-term Investment |
1,200,000.00 |
1,200,000.00 |
1,200,000.00 |
|
Fixed Assets |
187,644,494.47 |
195,866,848.50 |
181,641,549.11 |
|
Other Non-current Assets |
2,127,070.85 |
3,711,901.05 |
4,468,708.51 |
|
Total Assets |
344,161,460.03 |
395,433,389.46 |
350,373,409.25 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft & Short-term
Loan from Financial Institution |
220,419,819.31 |
229,074,012.34 |
197,088,154.90 |
|
Trade Accounts &
Other Payable |
5,862,401.21 |
30,128,163.42 |
9,191,751.64 |
|
Other Current Liabilities |
8,855,363.31 |
7,375,142.72 |
4,292,739.51 |
|
|
|
|
|
|
Total Current Liabilities |
235,137,583.83 |
266,577,318.48 |
210,572,646.05 |
|
|
|
|
|
|
Long-term Loan from Financial Institution |
19,250,865.35 |
42,710,163.05 |
58,428,277.89 |
|
Total Liabilities |
254,388,449.18 |
309,287,481.53 |
269,000,923.94 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10,000
par value authorized, issued
and fully paid share
capital 7,000 shares |
70,000,000.00 |
70,000,000.00 |
70,000,000.00 |
|
|
|
|
|
|
Capital Paid |
70,000,000.00 |
70,000,000.00 |
70,000,000.00 |
|
Retained Earning : Appropriated for statutory reserve |
4,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
Unappropriated |
15,773,010.85 |
12,145,907.93 |
7,372,485.31 |
|
Total Shareholders' Equity |
89,773,010.85 |
86,145,907.93 |
81,372,485.31 |
|
Total Liabilities &
Shareholders' Equity |
344,161,460.03 |
395,433,389.46 |
350,373,409.25 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
926,644,420.94 |
982,454,799.56 |
1,136,889,209.71 |
|
Other Income |
6,855,257.33 |
9,840,349.16 |
7,647,820.05 |
|
Total Revenues |
933,499,678.27 |
992,295,148.72 |
1,144,537,029.76 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
844,904,638.61 |
902,054,590.32 |
1,045,647,478.70 |
|
Selling Expenses |
50,703,349.74 |
48,547,783.67 |
16,925,435.29 |
|
Administrative Expenses |
18,094,590.32 |
19,067,804.13 |
64,019,287.10 |
|
Total Expenses |
913,702,578.67 |
969,670,178.12 |
1,126,592,201.09 |
|
|
|
|
|
|
Profit before Financial Cost |
19,797,099.60 |
22,624,970.60 |
17,944,828.67 |
|
Financial Cost |
[16,169,996.68] |
[17,851,547.98] |
[17,632,763.31] |
|
|
|
|
|
|
Net Profit / [Loss] |
3,627,102.92 |
4,773,422.62 |
312,065.36 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.65 |
0.73 |
0.77 |
|
QUICK RATIO |
TIMES |
0.39 |
0.33 |
0.46 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.94 |
5.02 |
6.26 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.69 |
2.48 |
3.24 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
24.07 |
39.22 |
22.02 |
|
INVENTORY TURNOVER |
TIMES |
15.16 |
9.31 |
16.57 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
22.12 |
21.83 |
15.48 |
|
RECEIVABLES TURNOVER |
TIMES |
16.50 |
16.72 |
23.57 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
2.53 |
12.19 |
3.21 |
|
CASH CONVERSION CYCLE |
DAYS |
43.66 |
48.86 |
34.30 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.18 |
91.82 |
91.97 |
|
SELLING & ADMINISTRATION |
% |
7.42 |
6.88 |
7.12 |
|
INTEREST |
% |
1.75 |
1.82 |
1.55 |
|
GROSS PROFIT MARGIN |
% |
9.56 |
9.19 |
8.70 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.14 |
2.30 |
1.58 |
|
NET PROFIT MARGIN |
% |
0.39 |
0.49 |
0.03 |
|
RETURN ON EQUITY |
% |
4.04 |
5.54 |
0.38 |
|
RETURN ON ASSET |
% |
1.05 |
1.21 |
0.09 |
|
EARNING PER SHARE |
BAHT |
518.16 |
681.92 |
44.58 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.74 |
0.78 |
0.77 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.83 |
3.59 |
3.31 |
|
TIME INTEREST EARNED |
TIMES |
1.22 |
1.27 |
1.02 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(5.68) |
(13.58) |
|
|
OPERATING PROFIT |
% |
(12.50) |
26.08 |
|
|
NET PROFIT |
% |
(24.01) |
1,429.62 |
|
|
FIXED ASSETS |
% |
(4.20) |
7.83 |
|
|
TOTAL ASSETS |
% |
(12.97) |
12.86 |
|
ANNUAL GROWTH : RISKY
An annual sales growth is -5.68%. Turnover has decreased from THB
PROFITABILITY : IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
9.56 |
Impressive |
Industrial Average |
- |
|
Net Profit Margin |
0.39 |
Satisfactory |
Industrial Average |
0.44 |
|
Return on Assets |
1.05 |
Impressive |
Industrial Average |
0.81 |
|
Return on Equity |
4.04 |
Impressive |
Industrial Average |
2.58 |
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 9.56%. 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 0.39%. 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. Return on Assets ratio is
1.05%, 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.
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 4.04%, 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 : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.65 |
Risky |
Industrial Average |
1.17 |
|
Quick Ratio |
0.39 |
|
|
|
|
Cash Conversion Cycle |
43.66 |
|
|
|
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 0.65 times in 2014, decreased from 0.73 times, then the company may not be
efficiently using its current assets. 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 0.39 times in 2014,
increased from 0.33 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 44 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.74 |
Acceptable |
Industrial Average |
0.66 |
|
Debt to Equity Ratio |
2.83 |
Risky |
Industrial Average |
1.91 |
|
Times Interest Earned |
1.22 |
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 1.23 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 0.74 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 : EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.94 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
2.69 |
Impressive |
Industrial Average |
1.83 |
|
Inventory Conversion Period |
24.07 |
|
|
|
|
Inventory Turnover |
15.16 |
Impressive |
Industrial Average |
7.30 |
|
Receivables Conversion Period |
22.12 |
|
|
|
|
Receivables Turnover |
16.50 |
Impressive |
Industrial Average |
4.10 |
|
Payables Conversion Period |
2.53 |
|
|
|
The company's Account Receivable Ratio is calculated as 16.50 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 39 days at the
end of 2013 to 24 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 9.31 times in year 2013 to 15.16
times in year 2014.
The company's Total Asset Turnover is calculated as 2.69 times and 2.48
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
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.53 |
|
|
1 |
Rs.99.19 |
|
Euro |
1 |
Rs.69.60 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.