MIRA INFORM REPORT
|
Report No. : |
348396 |
|
Report Date : |
04.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
OM DIAMOND CO.,
LTD. |
|
|
|
|
Registered Office : |
28th Floor, Jewellery Trade Center, 919/352-353 Silom Road, Silom, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
10.09.1993 |
|
|
|
|
Com. Reg. No.: |
0105536103864 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer,
Distributor and Exporter of Diamonds |
|
|
|
|
No. of Employees : |
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 |
|
|
|
|
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 – 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,
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
OM DIAMOND CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 28th FLOOR,
JEWELLERY TRADE CENTER,
919/352-353 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2630-2700-2
FAX :
[66] 2630-2703
E-MAIL
ADDRESS : omdiam@asianet.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1993
REGISTRATION
NO. : 0105536103864 [Former : 6960/2536]
TAX
ID NO. : 3011325476
CAPITAL REGISTERED : BHT. 28,000,000
CAPITAL PAID-UP : BHT.
28,000,000
SHAREHOLDER’S PROPORTION : THAI : 98.00%
INDIAN
: 2.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
DIPAK SHAHTHANAWUTH, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 4
LINES
OF BUSINESS : DIAMONDS
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 September
10, 1993 as
a private limited
company under the registered
name OM DIAMOND
CO., LTD., by Thai
and Indian groups, in
order to import
and distribute various
kinds of diamonds
to both local
and overseas markets.
It currently employs
4 staff.
The
subject’s registered address is 28th Flr., Jewellery Trade
Center, 919/352-353 Silom Rd.,
Silom, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Dipak Shahthanawuth |
|
Thai |
43 |
AUTHORIZED
PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Dipak Shahthanawuth is
the Managing Director.
He is Thai
nationality with the
age of 43 years
old.
BUSINESS
OPERATIONS
The subject is engaged
in importing, distributing
and exporting various
kinds of diamonds,
mainly natural white
diamonds in various
shapes, e.g. round, taper,
baguette, princess, marquis,
trilliant, pear, and
rose cuts, as
well as natural
fancy color diamonds [pink, green,
canary, gray, silver,
golden, orange, rose
pink, mix fancy
color, cognac and
yellow mixed fancy
shape], white nats [with
black spot small
to big & light medium
to dark color],
old cut, briolettes
and diamond beads.
PURCHASE
The
products are purchased
from both local
and overseas suppliers
mainly in India
and Africa.
DISTRIBUTION
The products are
sold by wholesale
to traders and
jewelry manufacturers in
both
domestic [80%] and overseas countries [20%], such as
Belgium, Australia, Japan, Hong Kong,
Republic of China,
India, United Kingdom, Italy,
U.S.A. and France.
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 the
past two years.
RELATED
COMPANY
DP Group and
Brothers Co., Ltd.
Business Type :
Distributor of diamonds
and jewelry products
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.
BUSINESS
TRANSACTION
The products are
sold to wholesalers and end-users
by credit, with the maximum 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 a
prime commercial area.
COMMENT
The
subject is one of
the leading suppliers of
fancy diamond. Its
products have been
recognized in local market by jewelry
traders. Despite slow consumption in
jewelry business, subject
reported strong sales in
2013.
Slow
recovery in domestic
market has resulted
to slow consumption
and higher household
debt would affect
the jewelry industry
as a whole.
FINANCIAL
INFORMATION
The
capital was initially
registered at Bht. 2,000,000 divided
into 20,000 shares of
Bht. 100 each.
The
capital was increased
later as follows:
Bht. 5,000,000
on April 4, 1995
Bht. 11,000,000
on July 14, 1998
Bht. 20,000,000
on March 31,
2011
Bht. 28,000,000
on March 8,
2013
The
latest registered capital
was increased to
Bht. 28,000,000 divided into
280,000 shares of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
[as
at April 30,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Dipak Shahthanawuth Nationality: Thai Address : 39/445
South Sathorn Road,
Thungmahamek, Sathorn, Bangkok
|
274,400 |
98.00 |
|
Mr. Kavan Prakash Shah Nationality: Indian Address : 39
Nepean Sea Road,
Mumbai, India |
2,800 |
1.00 |
|
Mr. Pallavi Prakash Shah Nationality: Indian Address : 39
Nepean Sea Road,
Mumbai, India |
2,800 |
1.00 |
Total Shareholders : 3
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
274,400 |
98.00 |
|
Foreign - Indian |
2 |
5,600 |
2.00 |
|
Total |
3 |
280,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mrs. Wasana Tanmongkol
No. 1888
Note:
The 2014 financial
statement has not
yet available during
investigation.
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 |
794,769.87 |
375,612.33 |
200,243.29 |
|
Trade Accounts Receivable |
34,147,348.43 |
34,883,108.14 |
23,129,965.34 |
|
Inventories |
158,985,252.86 |
115,297,165.04 |
121,418,444.96 |
|
Other Current Assets
|
553,959.59 |
434,565.55 |
720,223.99 |
|
Total Current Assets
|
194,481,330.75 |
150,990,451.06 |
145,468,877.58 |
|
|
|
|
|
|
Fixed Assets |
3,462,346.95 |
4,074,383.52 |
2,818,695.06 |
|
Non-current Assets |
|
|
|
|
Cash at Bank Pledged as
a Collateral |
13,565,000.00 |
9,500,000.00 |
6,000,000.00 |
|
Other Assets |
46,300.84 |
81,683.12 |
15,234.58 |
|
Total Assets |
211,554,978.54 |
164,646,517.70 |
154,302,807.22 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft and Short-term Loan from Financial
Institution |
55,654,446.30 |
40,273,756.31 |
39,183,372.76 |
|
Trade Accounts Payable |
99,830,048.62 |
83,753,709.86 |
84,354,703.25 |
|
Current Portion Lease Contract Liabilities |
314,328.00 |
314,328.00 |
- |
|
Short-term Loan from
Related Person |
9,240,000.00 |
9,840,000.00 |
11,120,000.00 |
|
Accrued Income Tax |
496,058.86 |
609,424.15 |
412,081.61 |
|
Other Current Liabilities |
7,535,558.95 |
1,122,145.22 |
570,277.12 |
|
Total Current Liabilities |
173,070,440.73 |
135,913,363.54 |
135,640,434.74 |
|
Long-term Loan |
12,241,268.30 |
9,508,083.65 |
3,000,000.00 |
|
Lease Contract Liabilities, Net |
366,716.00 |
681,044.00 |
- |
|
Total Liabilities |
185,678,425.03 |
146,102,491.19 |
138,640,434.74 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 280,000 shares
in 2013; 200,000 shares
in 2012 and
2011 |
28,000,000.00 |
20,000,000.00 |
20,000,000.00 |
|
Capital Paid |
28,000,000.00 |
20,000,000.00 |
20,000,000.00 |
|
Retained Earning - Unappropriated
|
[2,123,446.49] |
[1,455,973.49] |
[4,337,627.52] |
|
Total Shareholders' Equity |
25,876,553.51 |
18,544,026.51 |
15,662,372.48 |
|
Total Liabilities &
Shareholders' Equity |
211,554,978.54 |
164,646,517.70 |
154,302,807.22 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
187,247,686.00 |
154,721,431.43 |
101,294,691.32 |
|
Other Income |
481,520.22 |
4,042,083.39 |
133,994.18 |
|
Total Revenues |
187,729,206.22 |
158,763,514.82 |
101,428,685.50 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
168,160,430.06 |
141,477,384.42 |
92,112,006.37 |
|
Selling Expenses |
3,335,135.94 |
2,977,089.44 |
2,480,264.79 |
|
Administrative Expenses |
6,429,971.02 |
6,115,841.16 |
5,957,641.54 |
|
Other Expenses |
3,220,494.12 |
- |
2,468,129.71 |
|
Total Expenses |
181,146,031.14 |
150,570,315.02 |
103,018,042.41 |
|
Profit / [Loss] before Financial
Cost & Income Tax |
6,583,175.08 |
8,193,199.80 |
[1,589,356.91] |
|
Financial Cost |
[6,311,737.14] |
[4,355,229.37] |
[2,423,781.10] |
|
Profit / [Loss] before Income
Tax |
271,437.94 |
3,837,970.43 |
[4,013,138.01] |
|
Income Tax |
[938,910.94] |
[956,316.40] |
[761,074.06] |
|
Net Profit / [Loss] |
[667,473.00] |
2,881,654.03 |
[4,774,212.07] |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.12 |
1.11 |
1.07 |
|
QUICK RATIO |
TIMES |
0.20 |
0.26 |
0.17 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
54.08 |
37.97 |
35.94 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.89 |
0.94 |
0.66 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
345.08 |
297.46 |
481.13 |
|
INVENTORY TURNOVER |
TIMES |
1.06 |
1.23 |
0.76 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
66.56 |
82.29 |
83.35 |
|
RECEIVABLES TURNOVER |
TIMES |
5.48 |
4.44 |
4.38 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
216.69 |
216.08 |
334.26 |
|
CASH CONVERSION CYCLE |
DAYS |
194.96 |
163.67 |
230.21 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
89.81 |
91.44 |
90.93 |
|
SELLING & ADMINISTRATION |
% |
5.22 |
5.88 |
8.33 |
|
INTEREST |
% |
3.37 |
2.81 |
2.39 |
|
GROSS PROFIT MARGIN |
% |
10.45 |
11.17 |
9.20 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.52 |
5.30 |
(1.57) |
|
NET PROFIT MARGIN |
% |
(0.36) |
1.86 |
(4.71) |
|
RETURN ON EQUITY |
% |
(2.58) |
15.54 |
(30.48) |
|
RETURN ON ASSET |
% |
(0.32) |
1.75 |
(3.09) |
|
EARNING PER SHARE |
BAHT |
(2.38) |
14.41 |
(23.87) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.88 |
0.89 |
0.90 |
|
DEBT TO EQUITY RATIO |
TIMES |
7.18 |
7.88 |
8.85 |
|
TIME INTEREST EARNED |
TIMES |
1.04 |
1.88 |
(0.66) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
21.02 |
52.74 |
|
|
OPERATING PROFIT |
% |
(19.65) |
(615.50) |
|
|
NET PROFIT |
% |
(123.16) |
160.36 |
|
|
FIXED ASSETS |
% |
(15.02) |
44.55 |
|
|
TOTAL ASSETS |
% |
28.49 |
6.70 |
|
ANNUAL
GROWTH: ACCEPTABLE
An annual sales growth is 21.02%. Turnover has increased from THB
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
10.45 |
Impressive |
Industrial
Average |
3.01 |
|
Net Profit Margin |
(0.36) |
Deteriorated |
Industrial
Average |
0.58 |
|
Return on Assets |
(0.32) |
Deteriorated |
Industrial
Average |
3.55 |
|
Return on Equity |
(2.58) |
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 10.45%. 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 -0.36%.
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 -0.32%.
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 -2.58%.
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 |
1.12 |
Acceptable |
Industrial
Average |
1.60 |
|
Quick Ratio |
0.20 |
|
|
|
|
Cash Conversion Cycle |
194.96 |
|
|
|
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 1.12 times in 2013, increased from 1.11 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 0.2 times in 2013,
decreased from 0.26 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 195 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.88 |
Acceptable |
Industrial
Average |
0.73 |
|
Debt to Equity Ratio |
7.18 |
Risky |
Industrial
Average |
2.73 |
|
Times Interest Earned |
1.04 |
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 1.05 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 0.88 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 |
54.08 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.89 |
Deteriorated |
Industrial
Average |
6.16 |
|
Inventory Conversion Period |
345.08 |
|
|
|
|
Inventory Turnover |
1.06 |
Deteriorated |
Industrial
Average |
12.03 |
|
Receivables Conversion Period |
66.56 |
|
|
|
|
Receivables Turnover |
5.48 |
Acceptable |
Industrial
Average |
8.23 |
|
Payables Conversion Period |
216.69 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.48 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 297 days at the
end of 2012 to 345 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 1.23 times in year 2012 to 1.06 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.89 times and 0.94
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.65.45 |
|
UK Pound |
1 |
Rs.100.96 |
|
Euro |
1 |
Rs.72.10 |
INFORMATION DETAILS
|
Analysis Done by
: |
SAN |
|
|
|
|
Report Prepared
by : |
TRU |
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.