MIRA INFORM REPORT
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Report No. : |
323743 |
|
Report Date : |
26.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
GAYATRI DIAMONDS CO., LTD. |
|
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Registered Office : |
Room A, 15th Floor, Bangkok Gems & Jewelry Tower, 322/33 Surawong Road, Siphaya, 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 : |
16.03.2010 |
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Com. Reg. No.: |
0105553037530 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
The subject is
engaged in importing and
distributing various kinds of
diamonds, including brown
& black diamonds, fancy
diamonds, cut princess
diamonds and gemstones
for jewelry trading
and manufacturing business,
as well as
exporting fine jewelry,
diamonds and gemstones.
|
|
|
|
|
No. of Employees : |
1 |
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 – 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 |
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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 |
SUMMARY
BUSINESS
ADDRESS : ROOM
A, 15th FLOOR,
BANGKOK GEMS
& JEWELRY TOWER,
322/33 SURAWONG
ROAD, SIPHAYA,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2266-5575,
081 901-3007, 089
120-3007
FAX :
[66] 2266-5576
E-MAIL
ADDRESS : gayatridia2010@yahoo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2010
REGISTRATION
NO. : 0105553037530
TAX
ID NO. : 3033851397
CAPITAL REGISTERED : BHT. 4,000,000
CAPITAL PAID-UP : BHT.
4,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN : 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
DINESH KUMAR HIRABHAI
MAVANI, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 1
LINES
OF BUSINESS : DIAMONDS AND
GEMSTONES
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 March 16,
2010 as a
private limited company
under the registered
name GAYATRI DIAMONDS
CO., LTD., by
a joint venture
between Thai and Indian groups, with
the business objective
to import and
distribute various kinds
of diamonds and
gemstones for jewelry
business in local
market, as well
as to export
fine jewelry, diamonds and
gemstones for overseas
markets. It currently
employs 1 staff.
The
subject’s registered address
is Room A, 15th
Flr., Bangkok Gems
& Jewelry Tower,
322/33 Surawong Rd.,
Siphaya, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Dinesh Kumar Hirabhai
Mavani |
|
Indian |
36 |
|
Mr. Mahesh Kumar Hirjibhai
Mavani |
|
Indian |
30 |
AUTHORIZED PERSON
Mr. Dinesh Kumar Hirabhai
Mavani signs on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Dinesh Kumar
Hirabhai Mavani is
the Managing Director.
He is Indian
nationality with the
age of 36 years
old.
BUSINESS OPERATIONS
The subject is
engaged in importing and
distributing various kinds of
diamonds, including brown
& black diamonds, fancy
diamonds, cut princess
diamonds and gemstones
for jewelry trading
and manufacturing business,
as well as
exporting fine jewelry,
diamonds and gemstones.
IMPORT
The
products are purchased
from suppliers both
domestic and overseas
in India, Republic of
China and Hong
Kong.
SALES
The products are
sold to customers
both local and
overseas in Hong Kong.
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
according to 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 1 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’s sales revenues
in 2013 was
impressive with a
sharp increase in
sales amount compared
to the previous
year’s level. However,
the cost of
selling and administrative expenses
have risen significantly
which resulted in
a net loss
at the end
of year. Since
the beginning of
2014, market of
jewelry products and
diamond has shrunk
from economy slowdown
and low purchasing
power.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 4,000,000 divided into 40,000
shares of Bht.
100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Dinesh Kumar Hirabhai
Mavani Nationality: Indian Address : 322/33
Surawong Rd., Siphaya,
Bangrak, Bangkok |
13,600 |
34.00 |
|
Mr. Passakorn Pakdeesuk Nationality: Thai Address : 18/1
Moo 1, T. Nontathane, A. Nonedaeng,
Nakornratchasima |
6,800 |
17.00 |
|
Mrs. Patraporn Inmamuang Nationality: Thai Address : 16/1
Moo 6, T. Banpong,
A. Ngow, Lampang |
6,800 |
17.00 |
|
Ms. Arunrat Phueiam Nationality: Thai Address : 148
Krungthep-Kreetha Rd., Huamark,
Bangkapi, Bangkok |
6,800 |
17.00 |
|
Mr. Mahesh Kumar Hirjibhai
Mavani Nationality: Indian Address : 322/33
Surawong Rd., Siphaya,
Bangrak, Bangkok |
6,000 |
15.00 |
Total Shareholders : 5
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
20,400 |
51.00 |
|
Foreign - Indian |
2 |
19,600 |
49.00 |
|
Total |
5 |
40,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Ms. Piyaluck Soontawong No.
10794
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 |
222,988.09 |
94,542.90 |
96,580.57 |
|
Trade Accounts &
Other Receivable |
25,831,370.89 |
11,321,347.91 |
17,614,314.92 |
|
Inventories |
24,443,757.28 |
18,160,630.99 |
12,145,963.35 |
|
Other Current Assets
|
135,339.63 |
57,676.19 |
4,000.00 |
|
|
|
|
|
|
Total Current Assets
|
50,633,455.89 |
29,634,197.9 |
29,860,858.84 |
|
Long-term Loans |
- |
- |
590,450.00 |
|
Fixed Assets |
432,643.30 |
578,767.60 |
699,546.50 |
|
Other Non - current Assets |
- |
4,000.00 |
- |
|
Total Assets |
51,066,099.19 |
30,216,965.59 |
31,150,855.34 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
45,717,188.13 |
23,777,437.40 |
25,958,446.60 |
|
Current Portion of
Long-term Liabilities |
- |
72,149.50 |
167,564.01 |
|
Short-term Loan |
400,000.00 |
800,000.00 |
- |
|
Accrued Income Tax |
- |
30,649.71 |
66,541.31 |
|
Other Current Liabilities |
59,487.37 |
35,454.16 |
5,042.42 |
|
|
|
|
|
|
Total Current Liabilities |
46,176,675.50 |
24,715,690.77 |
26,197,594.34 |
|
Total Liabilities |
46,176,675.50 |
24,715,690.77 |
26,255,440.41 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 40,000 shares |
4,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
|
|
|
|
|
Capital Paid |
4,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning - Unappropriated [Deficit] |
889,423.69 |
1,501,274.82 |
895,414.93 |
|
Total Shareholders' Equity |
4,889,423.69 |
5,501,274.82 |
4,895,414.93 |
|
Total Liabilities & Shareholders' Equity |
51,066,099.19 |
30,216,965.59 |
31,150,855.34 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
51,994,960.09 |
14,838,929.58 |
37,742,115.78 |
|
Other Income |
- |
706,561.16 |
16,532.60 |
|
Total Revenues |
51,994,960.09 |
15,545,490.74 |
37,758,648.38 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
47,677,272.82 |
12,234,797.03 |
33,564,720.20 |
|
Selling Expenses |
288,016.82 |
194,315.70 |
416,871.16 |
|
Administrative Expenses |
4,640,566.08 |
2,419,797.99 |
2,972,511.78 |
|
Total Expenses |
52,605,855.72 |
14,848,910.72 |
36,954,103.11 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
[610,895.63] |
696,580.02 |
804,545.27 |
|
Financial Cost |
[955.50] |
[7,570.42] |
[1,051.88] |
|
Profit / [Loss] before Income
Tax |
[611,851.13] |
689,009.60 |
803,493.39 |
|
Income Tax |
- |
[83,149.71] |
[99,166.31] |
|
|
|
|
|
|
Net Profit / [Loss] |
[611,851.13] |
605,859.89 |
704,327.08 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.10 |
1.20 |
1.14 |
|
QUICK RATIO |
TIMES |
0.56 |
0.46 |
0.68 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
120.18 |
25.64 |
53.95 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.02 |
0.49 |
1.21 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
187.13 |
541.79 |
132.08 |
|
INVENTORY TURNOVER |
TIMES |
1.95 |
0.67 |
2.76 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
181.33 |
278.48 |
170.35 |
|
RECEIVABLES TURNOVER |
TIMES |
2.01 |
1.31 |
2.14 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
349.99 |
709.35 |
282.29 |
|
CASH CONVERSION CYCLE |
DAYS |
18.47 |
110.91 |
20.14 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.70 |
82.45 |
88.93 |
|
SELLING & ADMINISTRATION |
% |
9.48 |
17.62 |
8.98 |
|
INTEREST |
% |
0.00 |
0.05 |
0.00 |
|
GROSS PROFIT MARGIN |
% |
8.30 |
22.31 |
11.11 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(1.17) |
4.69 |
2.13 |
|
NET PROFIT MARGIN |
% |
(1.18) |
4.08 |
1.87 |
|
RETURN ON EQUITY |
% |
(12.51) |
11.01 |
14.39 |
|
RETURN ON ASSET |
% |
(1.20) |
2.01 |
2.26 |
|
EARNING PER SHARE |
BAHT |
(15.30) |
15.15 |
17.61 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.90 |
0.82 |
0.84 |
|
DEBT TO EQUITY RATIO |
TIMES |
9.44 |
4.49 |
5.36 |
|
TIME INTEREST EARNED |
TIMES |
(639.35) |
92.01 |
764.86 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
250.40 |
(60.68) |
|
|
OPERATING PROFIT |
% |
(187.70) |
(13.42) |
|
|
NET PROFIT |
% |
(200.99) |
(13.98) |
|
|
FIXED ASSETS |
% |
(25.25) |
(17.27) |
|
|
TOTAL ASSETS |
% |
69.00 |
(3.00) |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is 250.4%. Turnover has increased from THB
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.30 |
Impressive |
Industrial
Average |
3.01 |
|
Net Profit Margin |
(1.18) |
Deteriorated |
Industrial
Average |
0.58 |
|
Return on Assets |
(1.20) |
Deteriorated |
Industrial
Average |
3.55 |
|
Return on Equity |
(12.51) |
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 8.3%. 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 -1.18%.
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 -1.2%.
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 -12.51%.
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 |
1.10 |
Acceptable |
Industrial
Average |
1.60 |
|
Quick Ratio |
0.56 |
|
|
|
|
Cash Conversion Cycle |
18.47 |
|
|
|
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 1.1 times in 2013, decreased from 1.2 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 0.56 times in 2013,
increased from 0.46 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 19 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.90 |
Acceptable |
Industrial
Average |
0.73 |
|
Debt to Equity Ratio |
9.44 |
Risky |
Industrial
Average |
2.73 |
|
Times Interest Earned |
(639.35) |
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 -639.35 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 0.9 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 |
120.18 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.02 |
Deteriorated |
Industrial
Average |
6.16 |
|
Inventory Conversion Period |
187.13 |
|
|
|
|
Inventory Turnover |
1.95 |
Deteriorated |
Industrial
Average |
12.03 |
|
Receivables Conversion Period |
181.33 |
|
|
|
|
Receivables Turnover |
2.01 |
Deteriorated |
Industrial
Average |
8.23 |
|
Payables Conversion Period |
349.99 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.01 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 542 days at the
end of 2012 to 187 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 0.67 times in year 2012 to 1.95 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.02 times and 0.49
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.63.62 |
|
|
1 |
Rs.98.51 |
|
Euro |
1 |
Rs.69.93 |
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.