MIRA INFORM REPORT
|
Report No. : |
347750 |
|
Report Date : |
02.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
THAI ETHOXYLATE COMPANY
LIMITED |
|
|
|
|
Registered Office : |
15th Floor,
Energy Complex Building
A, 555/1 Vibhavadee Rangsit
Road, Chatuchak, Bangkok
10900 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Year of Establishment : |
2005 |
|
|
|
|
Com. Reg. No.: |
0105548034668 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
The subject is
engaged in manufacturing and
marketing of fatty
alcohol ethoxylate, made
from ethylene oxide
and fatty alcohol,
which is a
key ingredient in
manufacturing various personal
hygiene products, such as
shampoo, shower cream, detergent, liquid dish
washing and cleansing agent,
paint & rubber, agro-chemical,
metal. |
|
|
|
|
No. of Employee : |
49 |
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, and generally pro-investment policies Thailand has historically had a strong economy due in part to competitive 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 2-4 million migrant workers from neighboring countries, and faces labor shortages. Following the May 2014 coup d'etat, 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
THAI ETHOXYLATE COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 15th FLOOR,
ENERGY COMPLEX BUILDING
A,
555/1
VIBHAVADEE RANGSIT ROAD,
CHATUCHAK,
BANGKOK 10900, THAILAND
TELEPHONE : [66] 2265-8100
FAX :
[66] 2265-8125
E-MAIL
ADDRESS : marketing@tex.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2005
REGISTRATION
NO. : 0105548034668
TAX
ID NO. : 3031733800
CAPITAL REGISTERED : BHT. 420,000,000
CAPITAL PAID-UP : BHT.
420,000,000
SHAREHOLDER’S PROPORTION : THAI
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. VITHAYA PINMUANGNGAM,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 49
LINES
OF BUSINESS : FATTY
ALCOHOL ETHOXYLATE
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 March 10,
2005 as a private
limited company under
the name style THAI
ETHOXYLATE COMPANY LIMITED,
initially by a
joint venture between PTT
Public Company Limited
and Cognis Thai Limited. The
subject is the
first company to
manufacture and market
fatty alcohol ethoxylate to
both domestic and
international markets.
In
2011, the subject
has become a
joint venture between
PTT Global Chemical
Public Company Limited,
which is a
subsidiary of PTT Public
Company Limited, and
BASF [Thai] Ltd.,
a member of
BASF SE, in
Germany. It currently employs
49 staff.
The
subject’s registered address
was initially at
123 Sun Tower
Building A, Vibhavadee
Rangsit Rd., Chatuchak, Bangkok
10900.
On
March 22, 2010,
its registered address
was relocated to 15th Floor,
Energy Complex Building A,
555/1 Vibhavadee Rangsit
Road, Chatuchak, Bangkok
10900, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Chokechai Aksornand |
|
Thai |
73 |
|
Mr. Sermsak Sriyaphai |
[x] |
Thai |
59 |
|
Mr. Vithaya Pinmuangngam |
[x] |
Thai |
53 |
|
Mr. Boonchai Opas-iam-likit |
[-] |
Thai |
51 |
|
Mr. Heiko Arnold |
[-] |
German |
49 |
|
Mr. Gopalan Pillay |
[-] |
South African |
47 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
and [-] can
jointly sign on
behalf of the subject
with company’s affixed.
MANAGEMENT
Mr. Vithaya Pinmuangngam is
the Managing Director.
He is Thai
nationality with the
age of 53 years
old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing and marketing
of fatty alcohol
ethoxylate, made from
ethylene oxide and
fatty alcohol, which
is a key
ingredient in manufacturing
various personal hygiene
products, such as shampoo,
shower cream, detergent, liquid dish
washing and cleansing agent,
paint & rubber, agro-chemical,
metal and others.
The products are sold
under the trade
name “DEHYDOL”.
Its production
technology is supported
by Cognis, Germany.
PURCHASE
Raw
materials are purchased from
suppliers in both domestic and overseas, mainly
Germany, Japan and Malaysia.
MAJOR SUPPLIERS
PTT Global
Chemical Public Company
Limited : Thailand
BASF [Thai]
Ltd. : Thailand
Cognis Thai
Ltd. : Thailand
SALES
80% of the products
is sold locally by
wholesale to manufacturers, the
remaining 20% is exported to
Germany, Republic of China, Hong Kong,
India, Malaysia, Indonesia, Vietnam,
Singapore, Taiwan, Spain
and Italy.
MAJOR CUSTOMERS
Unilever Group : Thailand
Saha Pathanapibul Public
Company Limited :
Thailand
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 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
T/T.
BANKING
Bangkok Bank
Public Co., Ltd.
EMPLOYMENT
The
subject currently employs
49 staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial/residential area .
Factory
and warehouse are located
at 11 Soi G12, Eastern Industrial
Estate,
Pakornsongkroa Rd.,
Map Ta Phut, Muang, Rayong
21150.
Tel.: [66] 38 925-353,
Fax. : [66] 38 687-860.
COMMENT
Subject
was formed in 2005
as a manufacturer, distributor
and exporter of
fatty alcohol ethoxylate,
made from ethylene
oxide and fatty
alcohol. Its products
are raw materials for production
of liquid detergent,
shampoo, shower crème
and etc. Despite
overall economic slowdown
as well as industrial expansion and investment
remain stagnant, subject still
maintains a solid business.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 420,000,000 divided
into 4,200,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE
[as at
April 30, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
BASF [Thai] Ltd. Nationality: Thai Address : 622
Sukhumvit 24 Road,
Klongton,
Klongtoey, Bangkok |
2,099,998 |
50.00 |
|
PTT Global Chemical
Public Company Limited Nationality: Thai Address : 555/1
Energy Complex Building A,
Vibhavadee Rangsit Road,
Chatuchak, Bangkok |
2,099,997 |
50.00 |
|
Mr. Atthawuth Hiranburana Nationality: Thai Address : 201/69
Moo 1, Pimolrach
Rd.,
Bangbuathong, Nonthaburi |
1 |
- |
|
Mr. Kongkraphan Intarachaeng Nationality: Thai Address : 38/17
New Petchburi Rd.,
Bangkapi,
Huaykwang, Bangkok |
1 |
- |
|
Mr. Vithaya Pinmuangngam Nationality: Thai Address : 46/146
Moo 4, Ramindra
31 Rd.,
Anusawaree, Bangkhen, Bangkok |
1 |
- |
|
Cognis International Co.,
Ltd. Nationality: German Address : Germany |
1 |
- |
|
Cognis Trust Management
AG. Nationality: German Address : Germany |
1 |
- |
Total Shareholders : 7
Share Structure [as
at April 30,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
4,199,998 |
100.00 |
|
Foreign - German |
2 |
2 |
- |
|
Total |
7 |
4,200,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mr. Wairoj Chindamaneepitak No.
3565
Financial
BALANCE SHEET [BAHT]
The latest
financial figures published
for December 31,
2014, 2013 &
2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
479,948,735 |
561,188,962 |
635,310,090 |
|
Trade Accounts Receivable |
528,289,402 |
542,365,471 |
484,193,634 |
|
Other Receivable |
13,954,959 |
6,391,489 |
4,984,032 |
|
Inventories |
148,776,822 |
67,277,189 |
125,264,619 |
|
Value Added Tax |
269,976,392 |
216,529,944 |
191,360,301 |
|
Other Current Assets
|
6,583,674 |
7,149,609 |
14,319,843 |
|
|
|
|
|
|
Total Current Assets
|
1,447,529,984 |
1,400,902,664 |
1,455,432,519 |
|
|
|
|
|
|
Fixed Assets |
372,558,293 |
382,296,191 |
402,876,277 |
|
Intangible Assets |
15,928,729 |
19,409,458 |
22,930,823 |
|
Deferred Income Tax |
1,315,333 |
459,762 |
364,298 |
|
Other Non-current Assets |
67,450 |
67,450 |
67,450 |
|
Total Assets |
1,837,399,789 |
1,803,135,525 |
1,881,671,367 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Trade Accounts Payable |
387,616,858 |
363,129,257 |
406,177,466 |
|
& Other Payable |
56,288,298 |
64,823,710 |
64,798,295 |
|
Current Portion of Financial
Lease Contract Liabilities |
1,357,381 |
2,645,405 |
1,370,681 |
|
Derivatives |
1,339,245 |
3,806,602 |
22,854 |
|
Accrued Income Tax |
2,011,559 |
- |
- |
|
Other Current Liabilities |
- |
- |
1,266,890 |
|
|
|
|
|
|
Total Current Liabilities |
448,613,341 |
434,404,974 |
473,636,186 |
|
|
|
|
|
|
Financial Lease Liabilities,
net |
2,224,095 |
1,176,454 |
4,528,320 |
|
Obligation for Employee
Benefits |
6,576,667 |
2,298,809 |
1,821,491 |
|
Total Liabilities |
457,414,103 |
437,880,237 |
479,985,997 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 4,200,000 shares |
420,000,000 |
420,000,000 |
420,000,000 |
|
|
|
|
|
|
Capital Paid |
420,000,000 |
420,000,000 |
420,000,000 |
|
Retained Earning Appropriated for Statutory
Reserve |
42,000,000 |
42,000,000 |
39,518,010 |
|
Unappropriated |
917,985,686 |
903,255,288 |
942,167,360 |
|
Total Shareholders' Equity |
1,379,985,686 |
1,365,255,288 |
1,401,685,370 |
|
Total Liabilities &
Shareholders' Equity |
1,837,339,789 |
1,803,135,525 |
1,881,671,367 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
3,076,404,146 |
2,840,367,762 |
3,320,835,520 |
|
Interest Income |
2,748,170 |
4,503,604 |
4,134,235 |
|
Gain on Derivatives |
- |
- |
810,760 |
|
Gain on Exchange Rate |
3,920,184 |
6,144,113 |
7,772,195 |
|
Other Income |
366,928 |
898,734 |
384,749 |
|
Total Revenues |
3,083,439,428 |
2,851,914,213 |
3,333,937,459 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,703,824,401 |
2,483,418,418 |
2,909,789,371 |
|
Selling Expenses |
74,831,271 |
74,414,907 |
89,025,194 |
|
Administrative Expenses |
55,713,135 |
58,168,017 |
57,857,717 |
|
Loss on Derivatives |
[2,468,947] |
3,783,749 |
1,342,877 |
|
Financial Cost |
1,425,651 |
1,909,149 |
2,028,265 |
|
Total Expenses |
2,833,325,511 |
2,621,694,240 |
3,060,043,424 |
|
Profit before Income Tax |
250,113,917 |
230,219,973 |
273,894,035 |
|
Income Tax |
[4,879,177] |
[1,000,055] |
[5,537,990] |
|
Net Profit / [Loss] |
245,234,740 |
229,219,918 |
268,356,045 |
THAI ETHOXYLATE
COMPANY LIMITED
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
3.23 |
3.22 |
3.07 |
|
QUICK RATIO |
TIMES |
2.28 |
2.56 |
2.37 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
8.26 |
7.43 |
8.24 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.67 |
1.58 |
1.76 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
20.08 |
9.89 |
15.71 |
|
INVENTORY TURNOVER |
TIMES |
18.17 |
36.91 |
23.23 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
62.68 |
69.70 |
53.22 |
|
RECEIVABLES TURNOVER |
TIMES |
5.82 |
5.24 |
6.86 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
52.33 |
53.37 |
50.95 |
|
CASH CONVERSION CYCLE |
DAYS |
30.44 |
26.21 |
17.98 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
87.89 |
87.43 |
87.62 |
|
SELLING & ADMINISTRATION |
% |
4.24 |
4.67 |
4.42 |
|
INTEREST |
% |
0.05 |
0.07 |
0.06 |
|
GROSS PROFIT MARGIN |
% |
12.34 |
12.97 |
12.77 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
8.13 |
8.11 |
8.25 |
|
NET PROFIT MARGIN |
% |
7.97 |
8.07 |
8.08 |
|
RETURN ON EQUITY |
% |
17.77 |
16.79 |
19.15 |
|
RETURN ON ASSET |
% |
13.35 |
12.71 |
14.26 |
|
EARNING PER SHARE |
BAHT |
58.39 |
54.58 |
63.89 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.25 |
0.24 |
0.26 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.33 |
0.32 |
0.34 |
|
TIME INTEREST EARNED |
TIMES |
175.44 |
120.59 |
135.04 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
8.31 |
(14.47) |
|
|
OPERATING PROFIT |
% |
8.64 |
(15.95) |
|
|
NET PROFIT |
% |
6.99 |
(14.58) |
|
|
FIXED ASSETS |
% |
(2.55) |
(5.11) |
|
|
TOTAL ASSETS |
% |
1.90 |
(4.17) |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 8.31%.
Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
12.34 |
Deteriorated |
Industrial
Average |
56.89 |
|
Net Profit Margin |
7.97 |
Impressive |
Industrial
Average |
2.54 |
|
Return on Assets |
13.35 |
Impressive |
Industrial
Average |
2.83 |
|
Return on Equity |
17.77 |
Impressive |
Industrial
Average |
5.76 |
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 12.34%. 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. Which the high ratio in
7.97%, higher figure when compared with
those of its average competitors in the same industry, indicated that business
was an efficient operators 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
13.35%, 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 17.77%, 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 Uptrend
LIQUIDITY :
IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
3.23 |
Impressive |
Industrial
Average |
1.36 |
|
Quick Ratio |
2.28 |
|
|
|
|
Cash Conversion Cycle |
30.44 |
|
|
|
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 3.23 times in 2014, increase from 3.22 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 2.28 times in 2014,
decrease from 2.56 times, although excluding inventory so the company still
have good short-term financial strength.
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 31 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.25 |
Impressive |
Industrial
Average |
0.53 |
|
Debt to Equity Ratio |
0.33 |
Impressive |
Industrial
Average |
1.14 |
|
Times Interest Earned |
175.44 |
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 lower the percentage means that the company is
using less leverage and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 175.44 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 0.25 less than 0.5, most of the company's
assets are financed through equity.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Uptrend
Times Interest Earned Stable
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
8.26 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.67 |
Impressive |
Industrial
Average |
1.12 |
|
Inventory Conversion Period |
20.08 |
|
|
|
|
Inventory Turnover |
18.17 |
Impressive |
Industrial
Average |
4.91 |
|
Receivables Conversion Period |
62.68 |
|
|
|
|
Receivables Turnover |
5.82 |
Impressive |
Industrial
Average |
4.05 |
|
Payables Conversion Period |
52.33 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.82 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 10 days at the
end of 2013 to 20 days at the end of 2014. This represents a negative trend.
And Inventory turnover has decreased from 36.91 times in year 2013 to 18.17
times in year 2014.
The company's Total Asset Turnover is calculated as 1.67 times and 1.58
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 Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.22 |
|
|
1 |
Rs.99.93 |
|
Euro |
1 |
Rs.71.67 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.