MIRA INFORM REPORT
|
Report No. : |
322252 |
|
Report Date : |
19.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
OTANI RADIAL CO., LTD. |
|
|
|
|
Registered Office : |
96 Moo 3, Rimklongbanrai Road, T. Bangkaew, A. Nakornchaisri, Nakhonpathom 73120 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
13.07.2007 |
|
|
|
|
Com. Reg. No.: |
0735550001555 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject is
engaged in manufacturing, distributing and
exporting radial tires
for truck and
bus |
|
|
|
|
No. of Employees : |
400 |
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 but correct |
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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 – 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 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
OTANI RADIAL CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 96
MOO 3, RIMKLONGBANRAI ROAD,
T.
BANGKAEW, A. NAKORNCHAISRI,
NAKHONPATHOM 73120,
THAILAND
TELEPHONE : [66] 34
223-333, 34 222-744-6,
34 327-297-304
FAX :
[66] 34
321-598, 34 327-305
E-MAIL
ADDRESS : export@otanitire.com
sales@otanitire.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2007
REGISTRATION
NO. : 0735550001555
TAX
ID NO. : 3032766517
CAPITAL REGISTERED : BHT. 2,700,000,000
CAPITAL PAID-UP : BHT.
2,304,750,000
SHAREHOLDER’S PROPORTION : THAI :
60.00%
EMIRATES :
40.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
KIATICHAI LIMPICHOTIPONG, THAI
PRESIDENT
NO.
OF STAFF : 400
LINES
OF BUSINESS : RADIAL TIRES
MANUFACTURER, 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 July 13, 2007 as a private limited company under the registered name OTANI RADIAL CO., LTD., by Thai and Emirates groups. Its business objective is to manufacture radial tires for domestic and international markets. It currently employs approximately 400 staff.
The
major shareholder is
Zafco Holding BVI,
United Arab Emirates,
with holding around
40% of the
total shares.
The
subject’s registered address
is 96 Moo
3, Rimklongbanrai Road,
T. Bangkaew,
A. Nakornchaisri, Nakhonpathom 73120, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kiatichai Limpichotipong |
[x] |
Thai |
72 |
|
Mr. Ekachai Limpichotipong |
[x] |
Thai |
41 |
|
Mr. Boonmee Jitrjai |
|
Thai |
54 |
|
Mr. Safar Hussain |
|
Emirates |
49 |
|
Mr. Asif Yusufzai |
|
Emirates |
46 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Kiatichai Limpichotipong is
the President.
He is Thai nationality with
the age of 72 years
old.
Mr. Ekachai Limpichotipong is
the Vice President.
He is Thai
nationality with the
age of 41 years
old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing, distributing and
exporting radial tires
for truck and
bus, under its
brand “OTANI”.
PURCHASE
Raw materials and
chemicals are purchased
from suppliers both
in domestic and
overseas in Taiwan,
Germany, Republic of
China, India and U.S.A.
SALES
60% of the
products is exported
to U.S.A., Malaysia,
United Arab Emirates,
Indonesia, India, Taiwan
and the countries
in Europe and Africa,
the remaining 40%
is sold locally.
RELATED AND
AFFILIATED COMPANY
Otani Tire Co.,
Ltd.
Business Type :
Manufacturer and distributor
of automobile tires
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 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
T/T.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
400 staff.
LOCATION DETAILS
The premise
is owned for administrative office,
factory and warehouse
at the heading
address. Premise is
located in provincial.
COMMENT
Automotive
industry has scrapped
an expansion plan
of vehicles such
as passenger car, pick-up
truck and motorcycle. This
was due to
forecast of market
that remained bad across
the board in
the previous years.
An
ongoing decline in
legacy fixed products
was offset by
growth in automotive
industry, which expected
to see a
modest rise in
2015.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 100,000,000 divided
into 1,000,000 shares
of Bht. 100
each with fully
paid.
The
capital was increased
later as follows:
Bht. 1,000,000,000
on July 10,
2008
Bht. 1,200,000,000
on March 29,
2012
Bht. 2,700,000,000
on October 18,
2013
The
latest registered capital
was increased to
Bht. 2,700,000,000 divided into
27,000,000 shares of Bht.
100 each, with
the current capital
paid-up at Bht.
2,304,750,000 or 11,190,000
shares of Bht.
100 each and
15,810,000 shares of
Bht. 75 each.
THE SHAREHOLDERS
LISTED WERE
[as
at October 10,
2014] at Bht.
2,304,750,000 of capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Zafco Holding BVI Nationality: Emirates Address : Dubai,
United Arab Emirates |
10,800,000 |
40.00 |
|
Mr. Saengchai Limpichotipong Nationality: Thai Address : 109
Moo 4, T. Kanongphra, A. Pakchong,
Nakornratchasima |
3,240,000 |
12.00 |
|
Mr. Ekachai Limpichotipong Nationality: Thai Address : 216/15
Moo 8, Sampran
1 Road, T.
Sampran, A. Sampran, Nakhonpathom |
3,240,000 |
12.00 |
|
Mr. Kiatichai Limpichotipong Nationality: Thai Address : 55
Moo 7, Petchakasem
Road, T. Klongmai, A.
Sampran, Nakhonpathom |
2,430,000 |
9.00 |
|
Mrs. Saengaroon Limpichotipong Nationality: Thai Address : 96
Moo 3, Rimklongbanrai Road,
T.
Bangkaew, A. Sampran, Nakhonpathom |
2,430,000 |
9.00 |
|
Ms. Orawan Limpichotipong Nationality: Thai Address : 109
Moo 4, T. Kanongphra, A. Pakchong, Nakornratchasima |
1,620,000 |
6.00 |
|
Ms. Saranrat Limpichotipong Nationality: Thai Address : 216/15 Moo
8, Sampran 1
Road, T.
Sampran, A. Sampran, Nakhonpathom |
1,620,000 |
6.00 |
|
Ms. Uthaiwan Limpichotipong Nationality: Thai Address : 216/15 Moo
8, Sampran 1
Road, T.
Sampran, A. Sampran, Nakhonpathom |
1,620,000 |
6.00 |
Total Shareholders : 8
Share Structure
[as at October
10, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
16,200,000 |
60.00 |
|
Foreign - Emirates |
1 |
10,800,000 |
40.00 |
|
Total |
8 |
27,000,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Ms. Manee Ratanabannakij No.
5313
BALANCE
SHEET [BAHT]
The
latest financial figures
published for December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents
|
8,614,595 |
19,910,846 |
6,956,297 |
|
Trade Accounts Receivable |
239,464,024 |
167,692,867 |
99,154,291 |
|
Inventories |
599,905,622 |
244,583,392 |
269,018,222 |
|
Refundable Value Added
Tax |
70,841,959 |
14,584,631 |
22,353,064 |
|
Other Current Assets
|
4,902,004 |
5,345,427 |
1,864,215 |
|
|
|
|
|
|
Total Current Assets
|
923,728,204 |
452,117,163 |
399,346,089 |
|
Fixed Assets |
3,340,318,846 |
2,770,573,896 |
2,208,673,881 |
|
Prepayment for Purchased
Assets |
16,317,760 |
2,372,326 |
86,552,374 |
|
Deposit |
90,000 |
90,000 |
90,000 |
|
Total Assets |
4,280,454,810 |
3,225,153,385 |
2,694,662,344 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Short-term Loan
from Financial Institution |
609,049,995 |
393,195,381 |
399,065,311 |
|
Short-term Loan
from Director & Shareholders |
100,000,000 |
- |
- |
|
Trade Accounts
& Other Payable |
762,313,002 |
574,309,447 |
318,481,155 |
|
Current Portion
of Long-term Loan |
239,555,556 |
179,555,555 |
1,195,126,750 |
|
Estimated Liabilities
for Warranty |
18,476,148 |
10,163,426 |
2,238,025 |
|
Other Current
Liabilities |
1,312,117 |
1,064,576 |
351,021 |
|
|
|
|
|
|
Total Current
Liabilities |
1,730,706,818 |
1,158,288,385 |
1,915,262,262 |
|
Long-term
Loan -
Net of Current Portion |
743,709,505 |
983,275,770 |
- |
|
Reserve for
Long-term Employee Benefit |
1,355,431 |
937,494 |
643,209 |
|
Total Liabilities |
2,475,771,754 |
2,142,501,649 |
1,915,905,471 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100 par
value |
|
|
|
|
Authorized &
issued share capital
|
|
|
|
|
27,000,000 shares
in 2013 |
2,700,000,000 |
|
|
|
12,000,000 shares
in 2012 |
|
1,200,000,000 |
|
|
10,000,000 shares
in 2011 |
|
|
1,000,000,000 |
|
|
|
|
|
|
Capital Paid |
1,575,000,000 |
1,200,000,000 |
1,000,000,000 |
|
Advance Income from
Share Capital |
352,340,793 |
83,279,900 |
- |
|
Retained Earning - Unappropriated [Deficit] |
[122,657,737] |
[200,628,164] |
[221,243,127] |
|
|
|
|
|
|
Total Shareholders' Equity |
1,804,683,056 |
1,082,651,736 |
778,756,873 |
|
Total Liabilities &
Shareholders' Equity |
4,280,454,810 |
3,225,153,385 |
2,694,662,344 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
2,130,274,586 |
1,614,449,413 |
520,170,495 |
|
Gain on Exchange Rate |
- |
17,803,147 |
- |
|
Other Income |
14,469,566 |
13,630,788 |
1,772,420 |
|
Total Revenues |
2,144,744,152 |
1,645,883,348 |
521,942,915 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,868,195,935 |
1,482,678,888 |
626,604,304 |
|
Selling Expenses |
95,116,401 |
80,482,956 |
23,400,653 |
|
Administrative Expenses |
29,670,421 |
23,776,958 |
18,841,255 |
|
Loss on Exchange
Rate |
10,102,750 |
- |
14,829,270 |
|
Total Expenses |
2,003,085,507 |
1,586,938,802 |
683,675,482 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost |
141,658,645 |
58,944,546 |
[161,732,567] |
|
Financial Cost |
[63,688,218] |
[38,329,583] |
[38,221,615] |
|
Net Profit / [Loss] |
77,970,427 |
20,614,963 |
[199,954,182] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.53 |
0.39 |
0.21 |
|
QUICK RATIO |
TIMES |
0.14 |
0.16 |
0.06 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.64 |
0.58 |
0.24 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.50 |
0.50 |
0.19 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
117.21 |
60.21 |
156.70 |
|
INVENTORY TURNOVER |
TIMES |
3.11 |
6.06 |
2.33 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
41.03 |
37.91 |
69.58 |
|
RECEIVABLES TURNOVER |
TIMES |
8.90 |
9.63 |
5.25 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
148.94 |
141.38 |
185.52 |
|
CASH CONVERSION CYCLE |
DAYS |
9.30 |
(43.26) |
40.76 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
87.70 |
91.84 |
120.46 |
|
SELLING & ADMINISTRATION |
% |
5.86 |
6.46 |
8.12 |
|
INTEREST |
% |
2.99 |
2.37 |
7.35 |
|
GROSS PROFIT MARGIN |
% |
12.98 |
10.11 |
(20.12) |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
6.65 |
3.65 |
(31.09) |
|
NET PROFIT MARGIN |
% |
3.66 |
1.28 |
(38.44) |
|
RETURN ON EQUITY |
% |
4.32 |
1.90 |
(25.68) |
|
RETURN ON ASSET |
% |
1.82 |
0.64 |
(7.42) |
|
EARNING PER SHARE |
BAHT |
4.95 |
1.72 |
(20.00) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.58 |
0.66 |
0.71 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.37 |
1.98 |
2.46 |
|
TIME INTEREST EARNED |
TIMES |
2.22 |
1.54 |
(4.23) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
31.95 |
210.37 |
|
|
OPERATING PROFIT |
% |
140.33 |
(136.45) |
|
|
NET PROFIT |
% |
278.22 |
110.31 |
|
|
FIXED ASSETS |
% |
20.56 |
25.44 |
|
|
TOTAL ASSETS |
% |
32.72 |
19.69 |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 31.95%. Turnover has increased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
12.98 |
Deteriorated |
Industrial
Average |
103.83 |
|
Net Profit Margin |
3.66 |
Deteriorated |
Industrial
Average |
8.74 |
|
Return on Assets |
1.82 |
Deteriorated |
Industrial
Average |
11.18 |
|
Return on Equity |
4.32 |
Deteriorated |
Industrial
Average |
19.75 |
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 12.98%. 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 3.66%.
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 1.82%.
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 4.32%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
0.53 |
Risky |
Industrial
Average |
1.29 |
|
Quick Ratio |
0.14 |
|
|
|
|
Cash Conversion Cycle |
9.30 |
|
|
|
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 0.53 times in 2013, increased from 0.39 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 0.14 times in 2013, decreased
from 0.16 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 10 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.58 |
Acceptable |
Industrial Average |
0.43 |
|
Debt to Equity Ratio |
1.37 |
Risky |
Industrial
Average |
0.74 |
|
Times Interest Earned |
2.22 |
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 2.23 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 0.58 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 : SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
0.64 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.50 |
Deteriorated |
Industrial
Average |
1.28 |
|
Inventory Conversion Period |
117.21 |
|
|
|
|
Inventory Turnover |
3.11 |
Deteriorated |
Industrial
Average |
6.98 |
|
Receivables Conversion Period |
41.03 |
|
|
|
|
Receivables Turnover |
8.90 |
Impressive |
Industrial
Average |
5.64 |
|
Payables Conversion Period |
148.94 |
|
|
|
The company's Account Receivable Ratio is calculated as 8.90 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 60 days at the
end of 2012 to 117 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 6.06 times in year 2012 to 3.11 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.5 times and 0.5
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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.55 |
|
|
1 |
Rs.99.86 |
|
Euro |
1 |
Rs.72.67 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
VNT |
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.