MIRA INFORM REPORT
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Report No. : |
343217 |
|
Report Date : |
02.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
B.K.W.P. GEMS CO., LTD. |
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|
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|
Registered Office : |
Room E, 10th Floor, Bangkok Gems & Jewelry Tower, 322/12 Surawongse Road, Siphaya, Bangrak, Bangkok 10500 |
|
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|
|
Country : |
Thailand |
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|
|
|
Financials (as on) : |
31.12.2014 |
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|
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Date of Incorporation : |
25.11.1999 |
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|
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Com. Reg. No.: |
0105542091244 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Distributor and Exporter of Precious Stones and Jewelry. |
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No. of Employees : |
3 |
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 – 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 |
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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, 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’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
B.K.W.P. GEMS CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM E, 10th FLOOR,
BANGKOK GEMS & JEWELRY
TOWER, 322/12
SURAWONGSE ROAD, SIPHAYA,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2266-7407-8,
2631-5159-60, 081 860-4054
FAX :
[66] 2631-5160
E-MAIL
ADDRESS : snee.ja@yahoo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1999
REGISTRATION
NO. : 0105542091244
TAX
ID NO. : 3030011923
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.
KISHORE GUPTA, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 3
LINES
OF BUSINESS : PRECIOUS STONES AND JEWELRY
IMPORTER, 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 November
25, 1999 as a
private limited company
under the registered
name B.K.W.P. GEMS
CO., LTD., by Thai
and Indian groups,
with the business
objective to import, distribute
and export various
kinds of gemstones
and jewelry products. It
currently employs 3 staff.
The subject’s registered
address is Room E, 10th
Floor, Bangkok Gems & Jewelry Tower,
322/12 Surawongse Road, Siphaya,
Bangrak, Bangkok 10500, and
this is the
subject’s current operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kishore Gupta |
|
Indian |
53 |
|
Mrs. Anjula Gupta |
|
Indian |
48 |
|
Mr. Youraj Singh Shekhawat |
|
Indian |
26 |
AUTHORIZED
PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Kishore Gupta is
the Managing Director.
He is Indian
nationality with the
age of 53
years old.
BUSINESS
OPERATIONS
The subject is engaged in importing, distributing and re-exporting various kinds of
diamonds, precious stones, semi-precious stones and jewelry products,
as well as exporting
of local diamonds,
gemstones, precious stones
and semi-precious stones.
PURCHASE
The
products are purchased
from suppliers both domestic
and overseas in
India and Hong
Kong.
SALES [LOCAL]
The products are
sold locally by
wholesale to traders
and manufacturers.
EXPORT
The products are
exported and re-exported
to India, Republic
of China, Hong Kong
and Singapore.
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 IRICO’S
DATABASE 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 currently employs
3 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 reported moderate
sales in the
year 2014. However,
the jewelry market
has experienced a
slow business for
several months. It
is expected that
its business growth
would be slow
this year.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 2,000,000 divided
into 20,000 shares of Bht.100
each with fully
paid.
On
January 9, 2003,
the registered capital
was increased to
Bht. 4,000,000 divided
into 40,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE:
[as
at April 30,
2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Kishore Gupta Nationality: Indian Address : 72/12
Soi Atthaprasit, Thungmahamek,
Sathorn, Bangkok |
9,800 |
24.50 |
|
Mrs. Anjula Gupta Nationality: Indian Address : 72/12
Soi Atthaprasit, Thungmahamek,
Sathorn, Bangkok |
9,800 |
24.50 |
|
Ms. Cholticha Unprom Nationality: Thai Address : 247/27
Moo 1, Bangmod,
Thungkru, Bangkok |
8,800 |
22.00 |
|
Mrs. Ulaiwan Kerdchamroon Nationality: Thai Address : 74/194
Moo 4, T. Bangmaenang, A.
Bangyai, Nonthaburi |
8,800 |
22.00 |
|
Mrs. Pornpimom Sangsawang Nationality: Thai Address :
56/2 Moo 6,
T. Hinmool, A. Banglain,
Nakornpathom |
1,200 |
3.00 |
|
Ms. Naiyana Nochai Nationality: Thai Address : 65
Moo 1, T. Thapla,
A. Thapla, Utaradit
|
800 |
2.00 |
|
Ms. Nartlala Daengpeng Nationality: Thai Address : 51/1
Soi Prachauthis 45,
Bangmod,
Thungkru, Bangkok |
800 |
2.00 |
Total Shareholders : 7
Share
Structure
[as at April
30, 2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
20,400 |
51.00 |
|
Foreign - Indian |
2 |
19,600 |
49.00 |
|
Total |
7 |
40,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.:
Ms. Sirinart Thonark No.
9428
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 |
4,225,860.98 |
590,707.35 |
626,588.47 |
|
Trade Accounts & Other Receivable |
15,049,499.84 |
36,333,200.49 |
19,623,380.41 |
|
Inventories |
157,744,166.06 |
64,217,416.94 |
50,824,930.06 |
|
Other Current Assets
|
- |
- |
256,792.30 |
|
|
|
|
|
|
Total Current Assets
|
177,019,526.88 |
101,141,324.78 |
71,331,691.24 |
|
|
|
|
|
|
Fixed Assets |
1,769.69 |
4,101.09 |
6,432.49 |
|
Total Assets |
177,021,296.57 |
101,145,425.87 |
71,338,123.73 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft |
4,947,763.06 |
- |
195,506.50 |
|
Trade Accounts & Other Payable |
81,978,980.16 |
24,025,379.92 |
55,575,677.58 |
|
Accrued Income Tax |
256,416.67 |
337,251.15 |
925,306.38 |
|
Short-term Loan from Financial Institution |
70,804,005.17 |
- |
- |
|
|
|
|
|
|
Total Current Liabilities |
157,987,165.06 |
24,362,631.07 |
56,696,490.46 |
|
Long-term Liabilities, net |
- |
59,730,099.74 |
- |
|
Total Liabilities |
157,987,165.06 |
84,092,730.81 |
56,696,490.46 |
|
|
|
|
|
|
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 |
15,034,131.51 |
13,052,695.06 |
10,641,633.27 |
|
Total Shareholders' Equity |
19,034,131.51 |
17,052,695.06 |
14,641,633.27 |
|
Total Liabilities &
Shareholders' Equity |
177,021,296.57 |
101,145,425.87 |
71,338,123.73 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
201,510,065.79 |
156,809,074.42 |
225,863,885.63 |
|
Gain on Exchange Rate |
495,071.32 |
3,296,307.71 |
2,910,380.58 |
|
Other Income |
36,284.37 |
2,158.97 |
5,822.45 |
|
Total Revenues |
202,041,421.48 |
160,107,541.10 |
228,780,088.66 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
192,619,687.31 |
152,176,598.77 |
220,439,607.72 |
|
Selling & Administrative Expenses |
3,984,650.62 |
2,401,213.10 |
2,579,453.97 |
|
Total Expenses |
196,604,337.93 |
154,577,811.87 |
223,019,061.69 |
|
|
|
|
|
|
Profit /[Loss] before Financial Cost & Income Tax |
5,437,083.55 |
5,529,729.23 |
5,761,026.97 |
|
Financial Cost |
[2,959,230.43] |
[2,522,266.29] |
[850,296.93] |
|
|
|
|
|
|
Profit /[Loss] before Income
Tax |
2,477,853.12 |
3,007,462.94 |
4,910,730.04 |
|
Income Tax |
[496,416.67] |
[605,251.15] |
[1,133,306.38] |
|
Net Profit / [Loss] |
1,981,436.45 |
2,402,211.79 |
3,777,423.66 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.12 |
4.15 |
1.26 |
|
QUICK RATIO |
TIMES |
0.12 |
1.52 |
0.36 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
113,867.44 |
38,235.95 |
35,112.98 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.14 |
1.55 |
3.17 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
298.91 |
154.03 |
84.16 |
|
INVENTORY TURNOVER |
TIMES |
1.22 |
2.37 |
4.34 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
27.26 |
84.57 |
31.71 |
|
RECEIVABLES TURNOVER |
TIMES |
13.39 |
4.32 |
11.51 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
155.34 |
57.63 |
92.02 |
|
CASH CONVERSION CYCLE |
DAYS |
170.83 |
180.97 |
23.85 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
95.59 |
97.05 |
97.60 |
|
SELLING & ADMINISTRATION |
% |
1.98 |
1.53 |
1.14 |
|
INTEREST |
% |
1.47 |
1.61 |
0.38 |
|
GROSS PROFIT MARGIN |
% |
4.68 |
5.06 |
3.69 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.70 |
3.53 |
2.55 |
|
NET PROFIT MARGIN |
% |
0.98 |
1.53 |
1.67 |
|
RETURN ON EQUITY |
% |
10.41 |
14.09 |
25.80 |
|
RETURN ON ASSET |
% |
1.12 |
2.38 |
5.30 |
|
EARNING PER SHARE |
BAHT |
49.54 |
60.06 |
94.44 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.89 |
0.83 |
0.79 |
|
DEBT TO EQUITY RATIO |
TIMES |
8.30 |
4.93 |
3.87 |
|
TIME INTEREST EARNED |
TIMES |
1.84 |
2.19 |
6.78 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
28.51 |
(30.57) |
|
|
OPERATING PROFIT |
% |
(1.68) |
(4.01) |
|
|
NET PROFIT |
% |
(17.52) |
(36.41) |
|
|
FIXED ASSETS |
% |
(56.85) |
(36.24) |
|
|
TOTAL ASSETS |
% |
75.02 |
41.78 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is 28.51%. Turnover has increased from THB 156,809,074.42
in 2013 to THB 201,510,065.79 in 2014. While net profit has decreased from THB
2,402,211.79 in 2013 to THB 1,981,436.45 in 2014. And total assets has
increased from THB 101,145,425.87 in 2013 to THB 177,021,296.57 in 2014.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
4.68 |
Deteriorated |
Industrial
Average |
14.45 |
|
Net Profit Margin |
0.98 |
Deteriorated |
Industrial
Average |
2.32 |
|
Return on Assets |
1.12 |
Deteriorated |
Industrial
Average |
4.94 |
|
Return on Equity |
10.41 |
Satisfactory |
Industrial
Average |
13.14 |
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 4.68%. 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 0.98%.
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 1.12%.
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 10.41%.
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 |
1.77 |
|
Quick Ratio |
0.12 |
|
|
|
|
Cash Conversion Cycle |
170.83 |
|
|
|
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 2014, decreased from 4.15 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 0.12 times in 2014,
decreased from 1.52 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 171 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE:
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.89 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
8.30 |
Risky |
Industrial
Average |
1.46 |
|
Times Interest Earned |
1.84 |
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 1.84 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 0.89 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 |
113,867.44 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.14 |
Acceptable |
Industrial
Average |
2.13 |
|
Inventory Conversion Period |
298.91 |
|
|
|
|
Inventory Turnover |
1.22 |
Deteriorated |
Industrial
Average |
3.38 |
|
Receivables Conversion Period |
27.26 |
|
|
|
|
Receivables Turnover |
13.39 |
Impressive |
Industrial
Average |
4.06 |
|
Payables Conversion Period |
155.34 |
|
|
|
The company's Account Receivable Ratio is calculated as 13.39 and 4.32
in 2014 and 2013 respectively. This ratio measures the efficiency of the
company in managing its trade debtors to generate revenue. A lower ratio may
indicate over extension and collection problems. Conversely, a higher ratio may
indicate an overtly stringent policy. In this case, the company's A/R ratio in
2014 increased from 2013. This would suggest the company had good performance
in the management of its debt collections.
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 154 days at the
end of 2013 to 299 days at the end of 2014. This represents a negative trend.
And Inventory turnover has decreased from 2.37 times in year 2013 to 1.22 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.14 times and 1.55
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 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.65.74 |
|
|
1 |
Rs.99.53 |
|
Euro |
1 |
Rs.73.80 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
NIT |
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.