MIRA INFORM REPORT
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Report No. : |
327272 |
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Report Date : |
18.06.2015 |
IDENTIFICATION DETAILS
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Name : |
ANJU ENTERPRISE CO., LTD. |
|
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Registered Office : |
25th Floor, Gems Tower 1249/182 Charoenkrung Road, Suriyawongse, Bangrak, Bangkok 10500 |
|
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Country : |
Thailand |
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|
Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
08.07.2002 |
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Com. Reg. No.: |
0105545070043 |
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Legal Form : |
Private Limited Company
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Line of Business : |
Subject is engaged
in importing, distributing and
re-exporting of diamonds,
gemstones and pearls,
as well as
exporting of local
jewelry products. |
|
|
|
|
No. of Employee : |
4 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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 |
B1 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
ANJU ENTERPRISE CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 25th FLOOR,
GEMS TOWER,
1249/182 CHAROENKRUNG ROAD, SURIYAWONGSE,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2267-4780-2
FAX :
[66] 2267-4733
E-MAIL
ADDRESS : anjuent@samarts.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2002
REGISTRATION
NO. : 0105545070043 [Former
: 10454501193]
TAX
ID NO. : 3030601667
CAPITAL REGISTERED : BHT. 12,000,000
CAPITAL PAID-UP : BHT.
12,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
RISHI MAFATLAL KOTHARI,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 4
LINES
OF BUSINESS : DIAMONDS AND
JEWELRY PRODUCTS
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on July 8,
2002 as a
private limited company
under the name
style ANJU ENTERPRISE
CO., LTD. by Indian
and Thai partners,
in order to
import, distribute and
export of diamond
and jewelry products.
It currently employs
4 staff.
The
subject’s registered address
is 25th Flr.,
Gems Tower, 1249/182
Charoenkrung Rd., Suriyawongse, Bangrak, Bangkok 10500, and this is
the subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Rishi Mafatlal Kothari |
|
Indian |
35 |
|
Mr. Anand Jayantilal
Kothari |
|
Indian |
30 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Rishi Mafatlal
Kothari is the
Managing Director.
He is Indian
nationality with the
age of 35
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing,
distributing and re-exporting
of diamonds, gemstones
and pearls, as
well as exporting
of local jewelry
products.
PURCHASE
The
products are purchased
from suppliers both
domestic and overseas
in India, Africa, Pakistan,
Republic of China
and Belgium.
MAJOR SUPPLIER
R.
Kothari Co., Ltd. : India
SALES
[LOCAL]
The products are
sold locally to
wholesalers and manufacturers.
EXPORT
Jewelry
products are exported
to United States of America, Hong
Kong, Malaysia, Japan,
Italy, Germany, United
Kingdom and the
countries in Middle
East.
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
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.
BUSINESS TRANSACTION
The products are
sold both by
cash and credit,
with the credit given
at 30-60 days.
The subject is
not found to
have problem on
its account receivable.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office : 333
Silom Rd., Silom,
Bangrak, Bangkok 10500]
EMPLOYMENT
The
subject employs 4
staff [office and
sales staff]
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial
area.
COMMENT
Consumption
slowdown has limited expansion of jewelry industry including diamonds, precious
stone, gold, platinum and
other related products.
Subject’s business had been affected from
slow consumption in the year
2014.
Business
slowdown had seen
largely in jewelry
industry including export
markets.
FINANCIAL
INFORMATION
The
capital was initially
registered at Bht. 4,000,000 divided into
40,000 shares of Bht.
100 each.
The capital was
increased later as
follows:
Bht. 6,000,000
on November 5,
2004
Bht. 10,000,000
on September 8,
2010
Bht. 12,000,000
on March 25,
2014
The
latest registered capital
was increased to
Bht. 12,000,000 divided into 120,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE
[as
at March 19,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Rishi Mafatlal Kothari Nationality: Indian Address : 1349/47 Charoenkrung Rd.,
Banglampoolang, Klongsarn,
Bangkok |
29,400 |
24.50 |
|
Mr. Anand Jayantilal
Kothari Nationality: Indian Address : 304 Mumbai
India |
29,066 |
24.17 |
|
Mrs. Sumalee Langsunti Nationality: Thai Address : 5/78
Moo 1, Khokfad, Nongjok,
Bangkok |
15,300 |
12.75 |
|
Mr. Narong Kongthon Nationality: Thai Address : 134
Klongtonnua, Wattana, Bangkok |
15,300 |
12.75 |
|
Mr. Vorapoj Kongdon Nationality: Thai Address : 99/166
Soi Phaholyothin 50,
Anusaovaree, Bangkhen, Bangkok |
15,300 |
12.75 |
|
Mr. Pichet Kulamorndech Nationality: Thai Address : 26/2
Soi Manthai, Klongmahanak,
Pomprabsattrupai, Bangkok |
15,300 |
12.75 |
|
Mrs. Anju Jayantilal
Kothari Nationality: Indian Address : 304 Mumbai
India |
334 |
0.33 |
Total Shareholders : 7
Share Structure [as
at March 19,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
61,200 |
51.00 |
|
Foreign-Indian |
3 |
58,800 |
49.00 |
|
Total |
7 |
120,000 |
100.00 |
NAME
OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO. :
Mrs. Punnee Sornprachum No. 634
Note
The 2014 financial
statement has not
yet available during
investigation.
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 |
274,394.24 |
224,821.20 |
176,962.86 |
|
Trade Accounts &
Other Receivable |
39,529,391.54 |
33,601,445.76 |
17,776,561.95 |
|
Inventories |
85,087,826.81 |
106,534,793.61 |
156,139,173.49 |
|
Other Current Assets
|
269,693.86 |
424.89 |
5,947.15 |
|
|
|
|
|
|
Total Current Assets
|
125,161,306.45 |
140,361,485.46 |
174,098,645.45 |
|
|
|
|
|
|
Fixed Assets |
5,012,486.15 |
5,465,869.17 |
5,813,189.74 |
|
Other Non - current Assets |
- |
1,800.00 |
269,881.78 |
|
Total Assets |
130,173,792.60 |
145,829,154.63 |
180,181,716.97 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
26,393,230.80 |
10,124,448.40 |
20,500,528.26 |
|
Trade Accounts & Other
Payable |
70,023,344.63 |
90,287,429.36 |
106,627,032.10 |
|
Accrued Income Tax |
- |
283,325.92 |
88,919.13 |
|
Other Current Liabilities |
1,227,615.48 |
1,068,162.53 |
1,711,353.06 |
|
|
|
|
|
|
Total Current Liabilities |
97,644,190.91 |
101,763,366.21 |
128,927,832.55 |
|
Long-term Loan |
28,450,000.57 |
31,335,000.57 |
38,305,000.57 |
|
Total Liabilities |
126,094,191.48 |
133,098,366.78 |
167,232,833.12 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 100,000 shares |
10,000,000.00 |
10,000,000.00 |
10,000,000.00 |
|
|
|
|
|
|
Capital Paid |
10,000,000.00 |
10,000,000.00 |
10,000,000.00 |
|
Retained Earning Unappropriated |
5,920,398.88 |
2,730,787.85 |
2,948,883.85 |
|
Total Shareholders' Equity |
4,079,601.12 |
12,730,787.85 |
12,948,883.85 |
|
Total Liabilities & Shareholders' Equity |
130,173,792.60 |
145,829,154.63 |
180,181,716.97 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
105,808,196.29 |
102,713,114.20 |
61,455,841.67 |
|
Other Income |
99,999.00 |
6,887,916.31 |
246,048.12 |
|
Total Revenues |
105,908,195.29 |
109,601,030.51 |
61,701,889.79 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
103,103,433.03 |
99,927,109.74 |
59,472,295.55 |
|
Selling Expenses |
3,152,719.07 |
1,290,296.00 |
1,574,000.00 |
|
Administrative Expenses |
4,841,350.99 |
6,288,446.36 |
3,851,030.70 |
|
Other Expenses |
2,046,172.81 |
- |
1,748,800.50 |
|
Total Expenses |
113,143,675.90 |
107,505,852.10 |
66,646,126.75 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
[7,235,480.61] |
2,095,178.41 |
[4,944,236.96] |
|
Financial Cost |
[1,415,706.12] |
[1,714,348.49] |
[1,479,099.14] |
|
Income Tax |
- |
[598,925.92] |
[460,919.13] |
|
|
|
|
|
|
Net Profit / [Loss] |
[8,651,186.73] |
[218,096.00] |
[6,884,255.23] |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.28 |
1.38 |
1.35 |
|
QUICK RATIO |
TIMES |
0.41 |
0.33 |
0.14 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
21.11 |
18.79 |
10.57 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.81 |
0.70 |
0.34 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
301.22 |
389.14 |
958.27 |
|
INVENTORY TURNOVER |
TIMES |
1.21 |
0.94 |
0.38 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
136.36 |
119.41 |
105.58 |
|
RECEIVABLES TURNOVER |
TIMES |
2.68 |
3.06 |
3.46 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
247.89 |
329.79 |
654.40 |
|
CASH CONVERSION CYCLE |
DAYS |
189.69 |
178.75 |
409.45 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
97.44 |
97.29 |
96.77 |
|
SELLING & ADMINISTRATION |
% |
7.56 |
7.38 |
8.83 |
|
INTEREST |
% |
1.34 |
1.67 |
2.41 |
|
GROSS PROFIT MARGIN |
% |
2.65 |
9.42 |
3.63 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(6.84) |
2.04 |
(8.05) |
|
NET PROFIT MARGIN |
% |
(8.18) |
(0.21) |
(11.20) |
|
RETURN ON EQUITY |
% |
(212.06) |
(1.71) |
(53.16) |
|
RETURN ON ASSET |
% |
(6.65) |
(0.15) |
(3.82) |
|
EARNING PER SHARE |
BAHT |
(86.51) |
(2.18) |
(68.84) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.97 |
0.91 |
0.93 |
|
DEBT TO EQUITY RATIO |
TIMES |
30.91 |
10.45 |
12.91 |
|
TIME INTEREST EARNED |
TIMES |
(5.11) |
1.22 |
(3.34) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
3.01 |
67.13 |
|
|
OPERATING PROFIT |
% |
(445.34) |
(142.38) |
|
|
NET PROFIT |
% |
(3,866.69) |
96.83 |
|
|
FIXED ASSETS |
% |
(8.29) |
(5.97) |
|
|
TOTAL ASSETS |
% |
(10.74) |
(19.07) |
|
ANNUAL
GROWTH : RISKY
An annual sales growth is 3.01%. Turnover has increased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
2.65 |
Satisfactory |
Industrial
Average |
3.01 |
|
Net Profit Margin |
(8.18) |
Deteriorated |
Industrial
Average |
0.58 |
|
Return on Assets |
(6.65) |
Deteriorated |
Industrial
Average |
3.55 |
|
Return on Equity |
(212.06) |
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. The company's figure is 2.65%. 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 -8.18%.
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 -6.65%.
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 -212.06%.
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 |
1.28 |
Satisfactory |
Industrial
Average |
1.60 |
|
Quick Ratio |
0.41 |
|
|
|
|
Cash Conversion Cycle |
189.69 |
|
|
|
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 1.28 times in 2013, decreased from 1.38 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 0.41 times in 2013,
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 190 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.97 |
Acceptable |
Industrial
Average |
0.73 |
|
Debt to Equity Ratio |
30.91 |
Risky |
Industrial
Average |
2.73 |
|
Times Interest Earned |
(5.11) |
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 -5.12 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 0.97 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 |
21.11 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.81 |
Deteriorated |
Industrial
Average |
6.16 |
|
Inventory Conversion Period |
301.22 |
|
|
|
|
Inventory Turnover |
1.21 |
Deteriorated |
Industrial Average |
12.03 |
|
Receivables Conversion Period |
136.36 |
|
|
|
|
Receivables Turnover |
2.68 |
Deteriorated |
Industrial
Average |
8.23 |
|
Payables Conversion Period |
247.89 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.68 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 389 days at the
end of 2012 to 301 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 0.94 times in year 2012 to 1.21 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.81 times and 0.7
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.64.11 |
|
|
1 |
Rs.100.32 |
|
Euro |
1 |
Rs.72.17 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ANK |
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.