MIRA
INFORM REPORT
|
Report No. : |
345533 |
|
Report Date : |
21.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
RISHAN JEWELLERY
CO., LTD. |
|
|
|
|
Registered Office : |
Room 326, 26th Floor, Jewellery Trade Center, 919/326 Silom Road, Silom, Bangrak, Bangkok 10500, |
|
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Country : |
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|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
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Date of Incorporation : |
21.07.2010 |
|
|
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Com. Reg. No.: |
0105553088550 |
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Legal Form : |
Private Limited Company |
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|
|
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Line of Business : |
Distributor and Exporter of
Gold Jewelry Products. |
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|
|
|
No. of Employees : |
7 |
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 |
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Payment Behaviour : |
No Complaints |
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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, 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
RISHAN JEWELLERY CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
326, 26th FLOOR,
919/326 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2630-1832,
089 497-9610
FAX : [66] 2630-1832
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2010
REGISTRATION
NO. : 0105553088550
TAX
ID NO. : 3034016993
CAPITAL REGISTERED : BHT. 6,000,000
CAPITAL PAID-UP : BHT. 6,000,000
SHAREHOLDER’S PROPORTION : FOREIGN
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PURANMAL BAJAJ, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 7
LINES
OF BUSINESS : GOLD
JEWELRY PRODUCTS
DISTRIBUTOR AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on July 21, 2010
as a private
limited company under
the registered name RISHAN
JEWELLERY CO., LTD., by
foreign groups, with
the business objective
to distribute and
export various kinds
of gold jewelry
products. It currently
employs 7 staff.
The
subject’s registered address
is Room 326,
26th Floor, Jewellery
Trade Center, 919/326
Silom Road, Silom,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Mayuree Didpakkdeechol
[Former :
Mrs. Mayuree Chanpetch] |
|
Thai |
50 |
|
Mr. Puranmal Bajaj |
|
Indian |
67 |
|
Mr. Akash Rajendra Prasad
Bajaj |
|
Indian |
30 |
Note:
“Mrs. Mayuree Na Rangsilp”
changed her last
name to “Mrs. Mayuree Chanpetch” on
November 2, 2012,
and finally changed
her last name
to “Mrs. Mayuree Didpakkdeechol”
on October 1,
2014.
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Puranmal Bajaj is
the Managing Director.
He is Indian
nationality with the
age of 67 years
old.
BUSINESS OPERATIONS
The subject is
engaged in distributing and exporting
various styles of
gold jewelry products
such as ring,
necklace, pendant, earrings,
bracelet and etc.
PURCHASE
100% of the
products is purchased
from local suppliers.
SALES
The products are
sold by wholesale
to traders both
locally and overseas
in Hong Kong,
India and U.S.A..
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 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.
Exports are against
T/T.
BANKING
N/A
EMPLOYMENT
The
subject currently employs
7 staff.
LOCATION DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in prime commercial
area.
COMMENT
The
subject was established
in 2010 as
an exporter and
distributor of gold
jewelry.
The subject’s
operating performance in
2014 was satisfactory
with an increase
in sales revenues
and net profit
comparing to the
previous year. As
an exporter, the
subject would have
an advantage from
a weakness of
Thai baht against
other currencies at
the moment. Generally,
the subject’s business is
growing considerably.
FINANCIAL INFORMATION
The capital
was registered at
Bht. 2,000,000 divided into 20,000
shares of Bht. 100 each
with fully paid.
On
March 30, 2012,
the registered capital
was increased to Bht.
6,000,000 divided into
60,000 shares of
Bht. 100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 7, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Puranmal Bajaj Nationality: Indian Address : 168/67 Soi
Sukhumvit 23, Klongtoeynua,
Wattana, Bangkok |
40,002 |
66.66 |
|
Mr. Lokesh Puranmal Bajaj Nationality: American Address : 5050
Xavier, Common, Fremont,
California, U.S.A. |
4,000 |
6.67 |
|
Mrs. Sharad Bajaj Nationality: American Address : 5050
Xavier, Common, Fremont,
California, U.S.A. |
4,000 |
6.67 |
|
Mrs. Shweta Bajaj Nationality: Indian Address : 2640
Union City Road,
California, U.S.A. |
4,000 |
6.67 |
|
Mr. Vikas Puranmal Bajaj Nationality: American Address : 5050
Xavier, Common, Fremont,
California, U.S.A. |
4,000 |
6.67 |
|
Mr. Avinash Bajaj Nationality: Indian Address :
2640 Union City
Road, California, U.S.A. |
3,996 |
6.66 |
|
Mrs. Mayuree Didpakkdeechol Nationality: Thai Address : 301/733 Soi Supapong 2, Ramkhamhaeng 68
Rd.,
Huamark, Bangkapi, Bangkok |
2 |
- |
Total Shareholders : 7
Share Structure [as
at April 7,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
2 |
- |
|
Foreign |
6 |
59,998 |
100.00 |
|
Total |
7 |
60,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Ms. Suvimol
Wongratanakulthon No. 4508
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2014, 2013
& 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
1,431,931.55 |
1,309,584.28 |
145,394.28 |
|
Trade Accounts Receivable
|
8,951,826.00 |
4,872,933.47 |
1,748,658.22 |
|
Inventories |
13,233,417.12 |
9,923,663.57 |
9,179,432.70 |
|
Other Current Assets
|
84,444.06 |
42,997.53 |
37,397.18 |
|
|
|
|
|
|
Total Current Assets
|
23,701,618.73 |
16,149,178.85 |
11,110,882.38 |
|
|
|
|
|
|
Fixed Assets |
9,524,200.75 |
9,108,393.00 |
9,044,018.42 |
|
Deposits |
- |
- |
54,700.00 |
|
Total Assets |
33,225,819.48 |
25,257,571.85 |
20,209,600.80 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Trade Accounts Payable
|
1,837,233.25 |
2,455,328.33 |
1,665,076.07 |
|
Accrued Income Tax |
65,860.25 |
90,789.39 |
166,942.96 |
|
Other Current Liabilities |
141,412.65 |
154,194.16 |
89,627.87 |
|
|
|
|
|
|
Total Current Liabilities |
2,044,506.15 |
2,700,311.88 |
1,921,646.90 |
|
Loan from Director & Others |
22,000,000.00 |
14,676,825.30 |
11,151,040.30 |
|
Total Liabilities |
24,044,506.15 |
17,377,137.18 |
13,072,687.20 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized and
issued share capital
60,000 shares |
6,000,000.00 |
6,000,000.00 |
6,000,000.00 |
|
|
|
|
|
|
Capital Paid |
6,000,000.00 |
6,000,000.00 |
6,000,000.00 |
|
Retained Earnings: Appropriated for statutory
reserve |
300,000.00 |
300,000.00 |
300,000.00 |
|
Unappropriated |
2,881,313.33 |
1,580,434.67 |
836,913.60 |
|
Total Shareholders' Equity |
9,181,313.33 |
7,880,434.67 |
7,136,913.60 |
|
Total Liabilities &
Shareholders' Equity |
33,225,819.48 |
25,257,571.85 |
20,209,600.80 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
58,103,709.80 |
33,000,545.11 |
28,031,047.45 |
|
Other Income |
696,457.21 |
304,145.43 |
388,749.84 |
|
Total Revenues |
58,800,167.01 |
33,304,690.54 |
28,419,797.29 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
48,917,100.25 |
27,263,283.72 |
23,817,558.08 |
|
Administrative Expenses |
8,046,586.64 |
5,068,367.74 |
3,209,128.70 |
|
Total Expenses |
56,963,686.89 |
32,331,651.46 |
27,026,686.78 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
1,836,480.12 |
973,039.08 |
1,393,110.51 |
|
Financial Cost |
[206,341.21] |
[31,578.62] |
168,507.05 |
|
Profit / [Loss] before Income
Tax |
1,630,138.91 |
941,460.46 |
1,224,603.46 |
|
Income Tax |
[329,260.25] |
[197,939.39] |
296,892.96 |
|
|
|
|
|
|
Net Profit / [Loss] |
1,300,878.66 |
743,521.07 |
927,710.50 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
11.59 |
5.98 |
5.78 |
|
QUICK RATIO |
TIMES |
5.08 |
2.29 |
0.99 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
6.10 |
3.62 |
3.10 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.75 |
1.31 |
1.39 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
98.74 |
132.86 |
140.67 |
|
INVENTORY TURNOVER |
TIMES |
3.70 |
2.75 |
2.59 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
56.23 |
53.90 |
22.77 |
|
RECEIVABLES TURNOVER |
TIMES |
6.49 |
6.77 |
16.03 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
13.71 |
32.87 |
25.52 |
|
CASH CONVERSION CYCLE |
DAYS |
141.27 |
153.88 |
137.93 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
84.19 |
82.61 |
84.97 |
|
SELLING & ADMINISTRATION |
% |
13.85 |
15.36 |
11.45 |
|
INTEREST |
% |
0.36 |
0.10 |
0.60 |
|
GROSS PROFIT MARGIN |
% |
17.01 |
18.31 |
16.42 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.16 |
2.95 |
4.97 |
|
NET PROFIT MARGIN |
% |
2.24 |
2.25 |
3.31 |
|
RETURN ON EQUITY |
% |
14.17 |
9.44 |
13.00 |
|
RETURN ON ASSET |
% |
3.92 |
2.94 |
4.59 |
|
EARNING PER SHARE |
BAHT |
21.68 |
12.39 |
15.46 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.72 |
0.69 |
0.65 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.62 |
2.21 |
1.83 |
|
TIME INTEREST EARNED |
TIMES |
8.90 |
30.81 |
8.27 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
76.07 |
17.73 |
|
|
OPERATING PROFIT |
% |
88.74 |
(30.15) |
|
|
NET PROFIT |
% |
74.96 |
(19.85) |
|
|
FIXED ASSETS |
% |
4.57 |
0.71 |
|
|
TOTAL ASSETS |
% |
31.55 |
24.98 |
|
ANNUAL GROWTH: EXCELLENT
An annual sales growth is 76.07%. Turnover has increased from THB
33,000,545.11 in 2013 to THB 58,103,709.80 in 2014. While net profit has increased
from THB 743,521.07 in 2013 to THB 1,300,878.66 in 2014. And total assets has
increased from THB 25,257,571.85 in 2013 to THB 33,225,819.48 in 2014.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
17.01 |
Impressive |
Industrial
Average |
4.74 |
|
Net Profit Margin |
2.24 |
Acceptable |
Industrial
Average |
4.06 |
|
Return on Assets |
3.92 |
Satisfactory |
Industrial
Average |
4.95 |
|
Return on Equity |
14.17 |
Impressive |
Industrial
Average |
12.58 |
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. Gross Profit Margin is 17.01%. 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 2.24%.
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 3.92%.
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 14.17%, 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 Downtrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
11.59 |
Impressive |
Industrial
Average |
1.44 |
|
Quick Ratio |
5.08 |
|
|
|
|
Cash Conversion Cycle |
141.27 |
|
|
|
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 11.59 times in 2014, increase from 5.98 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 5.08 times in 2014,
increase from 2.29 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 142 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.72 |
Impressive |
Industrial
Average |
0.77 |
|
Debt to Equity Ratio |
2.62 |
Acceptable |
Industrial
Average |
3.32 |
|
Times Interest Earned |
8.90 |
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 8.91 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 0.72 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 Uptrend
Times Interest Earned Stable
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
6.10 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.75 |
Impressive |
Industrial
Average |
1.22 |
|
Inventory Conversion Period |
98.74 |
|
|
|
|
Inventory Turnover |
3.70 |
Impressive |
Industrial
Average |
3.23 |
|
Receivables Conversion Period |
56.23 |
|
|
|
|
Receivables Turnover |
6.49 |
Impressive |
Industrial
Average |
1.50 |
|
Payables Conversion Period |
13.71 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.49 and 6.77 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
decreased from 2013. This would suggest the company had deteriorated 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 decreased from 133 days at the
end of 2013 to 99 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 2.75 times in year 2013 to 3.7 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.75 times and 1.31
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.64.89 |
|
|
1 |
Rs.100.39 |
|
Euro |
1 |
Rs.73.52 |
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.