MIRA INFORM REPORT
|
Report No. : |
339617 |
|
Report Date : |
09.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
PRESTORISE INTERTRADE COMPANY LIMITED |
|
|
|
|
Registered Office : |
13th Floor, Bangkok
Gems & Jewellery Tower,
322/23 Surawong Road, Siphya,
Bangrak, Bangkok 10500, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
06.07.1989 |
|
|
|
|
Com. Reg. No.: |
0105532061741 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject is engaged in
importing, distributing and
exporting of diamonds, gemstones
and jewelry products.
|
|
|
|
|
No. of Employee : |
5 |
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 |
B1 |
B1 |
|
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
PRESTORISE
INTERTRADE COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 13th
FLOOR, BANGKOK GEMS & JEWELLERY TOWER,
322/23
SURAWONG ROAD,
SIPHYA,
BANGRAK,
BANGKOK
10500, THAILAND
TELEPHONE : [66] 2238-3880-3
FAX : [66] 2238-3884
E-MAIL ADDRESS : wonderful_9128@hotmail.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1989
REGISTRATION NO. : 0105532061741
TAX ID NO. : 3101720709
CAPITAL REGISTERED : BHT.
15,000,000
CAPITAL PAID-UP : BHT.
15,000,000
SHAREHOLDER’S PROPORTION : THAI
: 51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PRAVEEN RAGHUNATH LODHA,
INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 5
LINES OF BUSINESS : DIAMONDS, GEMSTONES & JEWELRY PRODUCTS
IMPORTER, EXPORTER
& DISTRIBUTOR
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 July
6, 1989 as
a private limited
company under the
registered name PRESTORISE
INTERTRADE COMPANY LIMITED,
by Thai and
Indian groups, in order
to import and distribute
diamonds, gemstones and
jewelry to both
local and overseas
markets. It current
employs 5 staff.
The subject’s registered address
is 13th Floor,
Bangkok Gems & Jewellery
Tower, 322/23 Surawong
Road, Siphya, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTOR
Mr. Praveen Raghunath
Lodha
AUTHORIZED
PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Praveen Raghunath
Lodha is the
Managing Director.
He is Indian
nationality with the
age of 57 years
old.
BUSINESS
OPERATIONS
The subject is engaged in
importing, distributing and
exporting of diamonds, gemstones
and jewelry products.
PURCHASE
100% of jewelry
products is purchased
from local suppliers
and manufacturers.
IMPORT
Diamonds and gemstones
are imported from
India, Republic of
China and Hong
Kong.
MAJOR
SUPPLIER
Anna Diamonds Bvba
Ltd. : India
SALES
[LOCAL]
Diamonds are sold
locally by wholesale
to dealers and
manufacturers.
EXPORT
Jewelry products are
exported to U.S.A., India, Hong Kong
and Europe.
SUBSIDIARY
AND AFFILIATED COMPANY
Priyaank International Co.,
Ltd.
Business Type :
Importer and distributor
of jewelry products
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
for the past
two years.
CREDIT
Sales are by
cash or on
the credit term
of 30 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public Co.,
Ltd.
[Head Office :
333 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
EMPLOYMENT
The subject employs
5 staff [office and
sales staff].
LOCATION
DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in commercial area.
COMMENT
The subject has been in its
business for more than 20
years. Its sales had steadily
grown in the past
several years. Subject reported
good business results in
the year 2014
despite of economic
slowdown and shrinking
domestic purchasing power.
Generally, the subject’s
business is promising
and enjoys steady
growth.
FINANCIAL
INFORMATION
The capital was
initially registered at Bht. 5,000,000
divided into 50,000
shares of Bht.
100 each.
The capital was
increased later as
follows:
Bht. 6,000,000
on December 8,
1993
Bht. 15,000,000
on December 27,
1994
The latest registered
capital was increased
to Bht. 15,000,000 divided
into 150,000 shares of
Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
[as at April
30, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Anupa Naruelar Nationality: Thai Address : 32/31-32 Sukhumvit 26 Rd.,
Klongton,
Klongtoey, Bangkok |
73,496 |
49.00 |
|
Mr. Praveen Raghunath
Lodha Nationality: Indian Address : 322/23
Surawong Rd., Siphya, Bangrak, Bangkok |
70,000 |
46.67 |
|
Ms. Niramala Zasiti Nationality: Indian Address : 1867/85
Charoennakorn Rd.,
Banglampulang,
Klongsan, Bangkok |
3,000 |
2.00 |
|
Mr. Nikorn Kijvanich Nationality: Thai Address : 69/71 Rama
4 Rd., Pomprab,
Bangkok |
3,000 |
2.00 |
|
Mrs. Sukesee Lodha Nationality: Indian Address : 1867/85
Charoennakorn Rd., Banglampulang,
Klongsan, Bangkok |
499 |
0.33 |
|
Ms. Araya Thirachawalit Nationality: Thai Address : 510
Charansanitwong 66/1 Rd.,
Bangplad, Bangkok |
4 |
- |
|
Ms. Mahee Lodha Nationality: Thai Address : 1867/93
Charoennakorn Rd.,
Banglampulang,
Klongsan, Bangkok |
1 |
- |
Total Shareholders : 7
Share Structure
[as at April
30, 2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
76,501 |
51.00 |
|
Foreign - Indian |
3 |
73,499 |
49.00 |
|
Total |
7 |
150,000 |
100.00 |
NAME
OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Nongnuj Ouitrakul
No. 2241
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 |
353,252.45 |
1,547,198.39 |
485,380.22 |
|
Short-term Investment |
63,033.75 |
61,039.58 |
58,995.39 |
|
Trade Accounts & Other Receivable |
19,103,793.51 |
80,100,529.88 |
94,118,118.98 |
|
Inventories |
133,136,005.60 |
120,065,728.40 |
49,770,338.49 |
|
Other Current Assets
|
4,898.74 |
74,193.99 |
3,605.80 |
|
|
|
|
|
|
Total Current Assets
|
152,660,984.05 |
201,848,690.24 |
144,436,438.88 |
|
|
|
|
|
|
Fixed Assets |
1,371,651.92 |
1,793,256.73 |
1,417,795.97 |
|
Intangible Assets |
24,866.34 |
3.00 |
3,086.10 |
|
Deposit |
1,200.00 |
1,200.00 |
1,200.00 |
|
Total Assets |
154,058,702.31 |
203,643,149.97 |
145,858,520.95 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
103,855,106.58 |
145,175,522.79 |
69,388,103.05 |
|
Trade Account & Other Payable |
9,093,713.36 |
20,044,235.98 |
40,265,954.37 |
|
Current Portion of Financial Lease Contract Liabilities |
121,820.08 |
354,304.97 |
336,854.70 |
|
Other Current Liabilities |
531,401.30 |
417,935.83 |
457,503.83 |
|
|
|
|
|
|
Total Current Liabilities |
113,602,041.32 |
165,991,999.57 |
110,448,415.95 |
|
Financial Lease Contract Liabilities, Net |
- |
121,820.08 |
477,436.31 |
|
Total Liabilities |
113,602,041.32 |
166,113,819.65 |
110,925,852.26 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized and
issued share capital
150,000 shares |
15,000,000.00 |
15,000,000.00 |
15,000,000.00 |
|
|
|
|
|
|
Capital Paid |
15,000,000.00 |
15,000,000.00 |
15,000,000.00 |
|
Retained Earning -
Unappropriated |
25,456,660.99 |
22,529,330.32 |
19,932,668.69 |
|
Total Shareholders' Equity |
40,456,660.99 |
37,529,330.32 |
34,932,668.69 |
|
Total Liabilities &
Shareholders' Equity |
154,058,702.31 |
203,643,149.97 |
145,858,520.95 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
224,311,350.29 |
201,409,397.44 |
191,649,458.58 |
|
Gain on Exchange Rate |
1,640,822.80 |
- |
3,805,585.68 |
|
Other Income |
361,304.53 |
276,925.13 |
258,554.58 |
|
Total Revenues |
226,313,477.62 |
201,686,322.57 |
195,713,598.84 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
211,678,012.88 |
185,001,880.84 |
182,899,516.42 |
|
Selling Expenses |
1,565,215.75 |
1,205,603.98 |
1,091,052.83 |
|
Administrative Expenses |
5,547,507.12 |
5,337,304.58 |
5,697,233.02 |
|
Loss on Exchange
Rate |
- |
3,311,083.50 |
- |
|
Total Expenses |
218,790,735.75 |
194,855,872.90 |
189,687,802.27 |
|
|
|
|
|
|
Profit before Financial Cost & Income Tax |
7,522,741.87 |
6,830,449.67 |
6,025,796.57 |
|
Financial Cost |
[3,561,129.90] |
[3,273,002.21] |
[2,233,780.57] |
|
Profit before Income Tax |
3,961,611.97 |
3,557,447.46 |
3,792,016.00 |
|
Income Tax |
[1,034,281.30] |
[960,785.83] |
[1,075,223.43] |
|
|
|
|
|
|
Net Profit / [Loss] |
2,927,330.67 |
2,596,661.63 |
2,716,792.57 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.34 |
1.22 |
1.31 |
|
QUICK RATIO |
TIMES |
0.17 |
0.49 |
0.86 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
163.53 |
112.31 |
135.17 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.46 |
0.99 |
1.31 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
229.57 |
236.88 |
99.32 |
|
INVENTORY TURNOVER |
TIMES |
1.59 |
1.54 |
3.67 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
31.09 |
145.16 |
179.25 |
|
RECEIVABLES TURNOVER |
TIMES |
11.74 |
2.51 |
2.04 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
15.68 |
39.55 |
80.36 |
|
CASH CONVERSION CYCLE |
DAYS |
244.97 |
342.50 |
198.22 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
94.37 |
91.85 |
95.43 |
|
SELLING & ADMINISTRATION |
% |
3.17 |
3.25 |
3.54 |
|
INTEREST |
% |
1.59 |
1.63 |
1.17 |
|
GROSS PROFIT MARGIN |
% |
6.52 |
8.28 |
6.69 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.35 |
3.39 |
3.14 |
|
NET PROFIT MARGIN |
% |
1.31 |
1.29 |
1.42 |
|
RETURN ON EQUITY |
% |
7.24 |
6.92 |
7.78 |
|
RETURN ON ASSET |
% |
1.90 |
1.28 |
1.86 |
|
EARNING PER SHARE |
BAHT |
19.52 |
17.31 |
18.11 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.74 |
0.82 |
0.76 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.81 |
4.43 |
3.18 |
|
TIME INTEREST EARNED |
TIMES |
2.11 |
2.09 |
2.70 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
11.37 |
5.09 |
|
|
OPERATING PROFIT |
% |
10.14 |
13.35 |
|
|
NET PROFIT |
% |
12.73 |
(4.42) |
|
|
FIXED ASSETS |
% |
(23.51) |
26.48 |
|
|
TOTAL ASSETS |
% |
(24.35) |
39.62 |
|
ANNUAL GROWTH : SATISFACTORY
An annual sales growth is 11.37%. Turnover has increased from THB
PROFITABILITY : ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
6.52 |
Deteriorated |
Industrial Average |
16.41 |
|
Net Profit Margin |
1.31 |
Satisfactory |
Industrial Average |
1.41 |
|
Return on Assets |
1.90 |
Acceptable |
Industrial Average |
3.02 |
|
Return on Equity |
7.24 |
Satisfactory |
Industrial Average |
8.20 |
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 6.52%. 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 1.31%.
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 1.9%.
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 7.24%.
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 |
1.34 |
Satisfactory |
Industrial Average |
1.66 |
|
Quick Ratio |
0.17 |
|
|
|
|
Cash Conversion Cycle |
244.97 |
|
|
|
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 1.34 times in 2014, decrease from 1.22 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 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 0.17 times in 2014,
decrease from 0.49 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 245 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.74 |
Acceptable |
Industrial Average |
0.60 |
|
Debt to Equity Ratio |
2.81 |
Risky |
Industrial Average |
1.49 |
|
Times Interest Earned |
2.11 |
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 2.12 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 0.74 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 |
163.53 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.46 |
Acceptable |
Industrial Average |
2.14 |
|
Inventory Conversion Period |
229.57 |
|
|
|
|
Inventory Turnover |
1.59 |
Deteriorated |
Industrial Average |
3.44 |
|
Receivables Conversion Period |
31.09 |
|
|
|
|
Receivables Turnover |
11.74 |
Impressive |
Industrial Average |
4.11 |
|
Payables Conversion Period |
15.68 |
|
|
|
The company's Account Receivable Ratio is calculated as 11.74 and
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has decreased from 237 days at the
end of 2013 to 230 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 1.54 times in year 2013 to 1.59 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.46 times and 0.99
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.66.61 |
|
|
1 |
Rs.102.30 |
|
Euro |
1 |
Rs.74.61 |
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
|
|
Report Prepared
by : |
SDA |
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.