MIRA INFORM REPORT
|
Report No. : |
325497 |
|
Report Date : |
03.06.2015 |
IDENTIFICATION DETAILS
|
Name : |
AGRO FIBER CO., LTD. |
|
|
|
|
Registered Office : |
138
Moo 7, T. Thatoom,
A. Srimahapote, Prachinburi 25140,
|
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
03.05.2004 |
|
|
|
|
Com. Reg. No.: |
0255547000319 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged
in manufacturing and
distributing of fiber
boards and related
products, mainly as Medium Density
Fiber Board [MDF Board], High
Density Fiber Board [HDF
Board], Hardboard, High Moisture
Resistance, Pallet &
Packaging, under its own
brand “AGF”. Its
products are made
from Eucalyptus wood. |
|
|
|
|
No. of Employees : |
400 |
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 – 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 has had a strong economy due in part to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Thailand 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 both 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. Government approved flood mitigation projects, worth $11.7 billion, were started in 2012 to prevent a repeat. Thai growth slowed in 2013 and has remained low since, as the country faced political uncertainty and a coup in May 2014. The interim government is implementing a special $11 billion short-term stimulus package and has approved a budget of more than $80 billion to aid an economic rebound.
|
Source
: CIA |
Company
name
AGRO
FIBER CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 138
MOO 7, T. THATOOM,
A. SRIMAHAPOTE,
PRACHINBURI 25140,
THAILAND
TELEPHONE : [66] 37
208-800-40
FAX :
[66] 37
208-586-7
E-MAIL
ADDRESS : mkt.agrofiber@gmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2004
REGISTRATION
NO. : 0255547000319
TAX
ID NO. : 3031382343
CAPITAL REGISTERED : BHT. 453,300,000
CAPITAL PAID-UP : BHT.
453,300,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SURASAK BOONNITIPAT,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 400
LINES
OF BUSINESS : FIBER
BOARDS AND RELATED
PRODUCTS
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on May 3, 2004
as a private
limited company under the
name style AGRO FIBER CO., LTD.,
by Thai groups, with the business objective
to manufacture and distribute fiber boards and
related products to both domestic and
international markets. It
currently employs approximately
400 staff.
It
has been granted
a promotional privilege by
the Board of
Investment [BOI] for
the production, under
the promotion certificate
No. 1367/2548.
At present, subject
is a wholly
owned subsidiary of
Paper Tree Holding Co.
Ltd.
The
subject’s registered address
is 138 Moo 7,
T. Thatoom, A. Srimahapote, Prachinburi
25140, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Thaveewat Sriprapattanawong |
|
Thai |
42 |
|
Mr. Chinnarat Boonchu |
|
Thai |
39 |
|
Mr. Prayad Chanpucha |
|
Thai |
47 |
|
Mr. Poolsak Sutanthavibul |
|
Thai |
55 |
|
Mr. Surasak Boonnitipat |
|
Thai |
53 |
|
Mr. Piyachai Sanguancheep |
|
Thai |
35 |
|
Mr. Jarupoom Pongpornnapha |
|
Thai |
50 |
|
Mr. Kumpon Chayasunthorn |
|
Thai |
52 |
AUTHORIZED PERSON
Two of the
above directors can
jointly sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Surasak Boonnitipat
is the Managing
Director.
He is Thai
nationality with the
age of 53 years
old.
BUSINESS OPERATIONS
The subject is engaged
in manufacturing and
distributing of fiber
boards and related
products, mainly as Medium Density
Fiber Board [MDF Board], High
Density Fiber Board [HDF Board],
Hardboard, High Moisture
Resistance, Pallet &
Packaging, under its own
brand “AGF”. Its
products are made
from Eucalyptus wood.
PRODUCTION CAPACITY
MDF Board :
100,000 Cubic Meters/annum
Hardboard : 6,000,000
Sheets/annum
Pallet : 850,000
Pallets/annum
PURCHASE
Most of raw
materials, mainly eucalyptus
wood and chemicals
are purchased from
local suppliers, the
remaining as well as machinery and spare parts are
imported from Germany,
Sweden, Switzerland and
Italy.
SALES
The products are
sold by wholesale
to both domestic
and overseas customers,
mainly in Korea,
Republic of China,
Taiwan, Philippines, Hong
Kong, Japan and
Africa.
MAJOR
CUSTOMERS
Wood
Sales & Development
Co., Ltd. : Thailand
Sengcharoen
Housing Products Co.,
Ltd. : Thailand
Ekviwatplywood Co.,
Ltd. : Thailand
Thanasiri
Intertrade Co., Ltd. : Thailand
SUBSIDIARY AND
AFFILIATED COMPANY
Wood
Sales & Development
Co., Ltd.
Business Type : Trading company
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
L/C at sight
or T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately
400 office staff
and factory workers.
LOCATION DETAILS
The
premise is owned
for administrative office,
factory I and warehouse
at the heading
address. Premise is
located in provincial.
Other
Factories :
Factory
II : Hardboard
Plant, 99 Moo 3, T. Khaohinsorn, A. Panomsarakham,
Chachoengsao 24120.
Factory
III : Pallet
Plant, 94/1 Moo
3, T. Khaohinsorn, A. Panomsarakham,
Chachoengsao 24120.
Sales & Marketing Office
: 187/3
Moo 1, Bangna-Trad
Road, T. Bangwua, A. Bangpakong,
Chachoengsao
24130. Tel.: [66]
38 538-347-8, Fax: [66]
38 440-784.
COMMENT
Subject’s
business performance remains
upbeat as its
products have been
widely used in
various industries. Its
plants have been
operating at high
efficiency, and quality
of products is
comparable to top
class plants in
world markets. This
has enabled the
subject a commitment
to the concept
of absolute consistency
in quality.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 1,000,000 divided
into 100,000 shares of Bht. 10
each.
The
capital was increased
later as following:
Bht. 145,000,000 on
March 17, 2005
Bht. 400,000,000 on
July 15, 2006
Bht. 414,500,000 on
February 28, 2008
Bht. 453,300,000 on
December 25, 2008
The
latest registered capital
was increased to
Bht. 453,300,000 divided
into 45,330,000 shares
of Bht. 10
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 29, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Paper Tree Holding
Co. Ltd. Nationality: Thai Address : 207
Moo 10, T.
Thatoom, A. Srimahapoh,
Prachinburi |
45,329,998 |
100.00 |
|
Mr. Surasak Boonnitipat Nationality: Thai Address : 25
Moo 4, T. Kohchang,
A. Kohchang, Trad |
1 |
- |
|
Mr. Pairat Rattanapiboon Nationality: Thai Address : 2/6
Moo 1, T. Bangteenped, A. Muang,
Chachoengsao |
1 |
- |
Total Shareholders : 3
Share Structure [as
at April 29,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
45,330,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
45,330,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Thongchai Piyadumrongkul
No. 3900
BALANCE
SHEET [BAHT]
The latest financial figures published
as at December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
13,850,626.86 |
5,319,379.55 |
27,704,170.46 |
|
Trade Accounts &
Other Receivable |
123,868,542.56 |
95,398,457.16 |
107,701,172.93 |
|
Inventories |
520,893,037.41 |
411,528,199.96 |
312,852,277.00 |
|
Other Current Assets
|
89,933,157.28 |
58,883,434.91 |
75,262,018.46 |
|
|
|
|
|
|
Total Current Assets
|
748,545,364.11 |
571,129,471.58 |
523,519,638.85 |
|
|
|
|
|
|
Long-term Investment |
14,999,392.00 |
14,999,392.00 |
14,999,392.00 |
|
Fixed Assets |
713,258,068.38 |
636,777,965.64 |
610,495,700.75 |
|
Other Non - current Assets |
15,833,098.13 |
4,807,000.00 |
4,793,000.00 |
|
Total Assets |
1,492,635,922.62 |
1,227,713,829.22 |
1,153,807,731.60 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft from Financial Institutions |
40,411,353.75 |
52,890,925.01 |
26,143,362.73 |
|
Trade Accounts Payable
|
128,168,491.41 |
162,357,607.74 |
113,431,917.53 |
|
Short-term Loan |
469,848,653.17 |
400,354,902.12 |
390,706,205.16 |
|
Current Portion of
Financial Lease Contract Liabilities |
18,955,671.38 |
18,663,692.24 |
16,967,204.01 |
|
Other Current Liabilities |
98,503,156.92 |
63,379,590.84 |
59,570,579.35 |
|
|
|
|
|
|
Total Current Liabilities |
755,887,326.63 |
697,646,717.95 |
606,819,268.78 |
|
Financial Lease Contract Liabilities, Net |
212,573,904.04 |
84,688,936.91 |
102,748,021.57 |
|
Total Liabilities |
968,461,230.67 |
782,335,654.86 |
709,567,290.35 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 45,330,000 shares |
453,300,000.00 |
453,300,000.00 |
453,300,000.00 |
|
|
|
|
|
|
Capital Paid |
453,300,000.00 |
453,300,000.00 |
453,300,000.00 |
|
Retained Earning Unappropriated |
70,874,691.95 |
[7,921,825.64] |
[9,059,558.75] |
|
Total Shareholders' Equity |
524,174,691.95 |
445,378,174.36 |
444,240,441.25 |
|
Total Liabilities & Shareholders' Equity |
1,492,635,922.62 |
1,227,713,829.22 |
1,153,807,731.60 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
1,407,261,950.94 |
1,379,260,909.93 |
1,561,187,286.47 |
|
Other Income |
189,930,623.70 |
31,181,195.51 |
31,552,052.13 |
|
Total Revenues |
1,597,192,574.64 |
1,410,442,105.44 |
1,592,739,338.60 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,322,317,324.52 |
1,208,982,437.57 |
1,348,674,956.93 |
|
Selling Expenses |
102,397,363.38 |
107,217,432.62 |
143,437,613.08 |
|
Administrative Expenses |
73,916,908.61 |
73,534,533.09 |
70,834,131.11 |
|
Total Expenses |
1,498,631,596.51 |
1,389,734,403.28 |
1,562,946,701.12 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
98,560,978.13 |
20,707,702.16 |
29,792,637.48 |
|
Financial Cost |
[19,423,865.30] |
[19,569,969.05] |
[15,583,961.54] |
|
Income Tax |
[340,595.24] |
- |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
78,796,517.59 |
1,137,733.11 |
14,208,675.94 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.99 |
0.82 |
0.86 |
|
QUICK RATIO |
TIMES |
0.18 |
0.14 |
0.22 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.97 |
2.17 |
2.56 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.94 |
1.12 |
1.35 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
143.78 |
124.24 |
84.67 |
|
INVENTORY TURNOVER |
TIMES |
2.54 |
2.94 |
4.31 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
32.13 |
25.25 |
25.18 |
|
RECEIVABLES TURNOVER |
TIMES |
11.36 |
14.46 |
14.50 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
35.38 |
49.02 |
30.70 |
|
CASH CONVERSION CYCLE |
DAYS |
140.53 |
100.47 |
79.15 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
93.96 |
87.65 |
86.39 |
|
SELLING & ADMINISTRATION |
% |
12.53 |
13.10 |
13.72 |
|
INTEREST |
% |
1.38 |
1.42 |
1.00 |
|
GROSS PROFIT MARGIN |
% |
19.53 |
14.61 |
15.63 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
7.00 |
1.50 |
1.91 |
|
NET PROFIT MARGIN |
% |
5.60 |
0.08 |
0.91 |
|
RETURN ON EQUITY |
% |
15.03 |
0.26 |
3.20 |
|
RETURN ON ASSET |
% |
5.28 |
0.09 |
1.23 |
|
EARNING PER SHARE |
BAHT |
1.74 |
0.03 |
0.31 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.65 |
0.64 |
0.61 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.85 |
1.76 |
1.60 |
|
TIME INTEREST EARNED |
TIMES |
5.07 |
1.06 |
1.91 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
2.03 |
(11.65) |
|
|
OPERATING PROFIT |
% |
375.96 |
(30.49) |
|
|
NET PROFIT |
% |
6,825.75 |
(91.99) |
|
|
FIXED ASSETS |
% |
12.01 |
4.31 |
|
|
TOTAL ASSETS |
% |
21.58 |
6.41 |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 2.03%. Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
19.53 |
Satisfactory |
Industrial
Average |
23.09 |
|
Net Profit Margin |
5.60 |
Impressive |
Industrial
Average |
1.80 |
|
Return on Assets |
5.28 |
Impressive |
Industrial
Average |
1.30 |
|
Return on Equity |
15.03 |
Impressive |
Industrial
Average |
2.65 |
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 19.53%. 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 5.6%,
higher figure when compared with those of its average competitors in the same
industry, indicated that business was an efficient operator in a dominant position within its industry.
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 5.28%, 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 15.03%, 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 |
0.99 |
Risky |
Industrial
Average |
1.09 |
|
Quick Ratio |
0.18 |
|
|
|
|
Cash Conversion Cycle |
140.53 |
|
|
|
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 0.99 times in 2013, increased from 0.82 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,
increased from 0.14 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
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.65 |
Acceptable |
Industrial
Average |
0.45 |
|
Debt to Equity Ratio |
1.85 |
Risky |
Industrial
Average |
0.83 |
|
Times Interest Earned |
5.07 |
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 5.08 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 0.65 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 |
1.97 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.94 |
Impressive |
Industrial
Average |
0.72 |
|
Inventory Conversion Period |
143.78 |
|
|
|
|
Inventory Turnover |
2.54 |
Acceptable |
Industrial
Average |
3.85 |
|
Receivables Conversion Period |
32.13 |
|
|
|
|
Receivables Turnover |
11.36 |
Impressive |
Industrial
Average |
5.00 |
|
Payables Conversion Period |
35.38 |
|
|
|
The company's Account Receivable Ratio is calculated as 11.36 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 124 days at the
end of 2012 to 144 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 2.94 times in year 2012 to 2.54 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.94 times and 1.12
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.63.83 |
|
|
1 |
Rs.97.10 |
|
Euro |
1 |
Rs.69.74 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.