MIRA INFORM REPORT
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Report No. : |
342236 |
|
Report Date : |
24.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
HALITE TRADING CO., LTD. |
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Registered Office : |
Room 204, 2nd Floor, Poonmanee Building, 30, 32, 34, 36 Soi Mahesak 3, Mahesak Road, Suriyawongse, Bangrak, Bangkok 10500, |
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Country : |
Thailand |
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|
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
24.02.2003 |
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Com. Reg. No.: |
0105546023839 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is engaged
in importing, distributing and re-exporting various
kinds of gemstones
and precious stones such as
ruby stones, yellow
sapphire, white sapphire, blue sapphire,
as well as
exporting of the
local products for
jewelry trading and
production. |
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|
|
|
No. of Employees : |
2 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
B1 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
HALITE
TRADING CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM 204, 2nd FLOOR,
POONMANEE BUILDING,
30,
32, 34, 36 SOI MAHESAK 3,
MAHESAK ROAD,
SURIYAWONGSE, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2233-7218
FAX :
[66] 2235-7196
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2003
REGISTRATION
NO. : 0105546023839
TAX
ID NO. : 3030825995
CAPITAL REGISTERED : BHT. 5,000,000
CAPITAL PAID-UP : BHT.
5,000,000
SHAREHOLDER’S PROPORTION : THAI :
55.00%
INDIAN
: 45.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. PARIKH RAJENDRA
KUMAR VIPINCHANDRA,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 2
LINES
OF BUSINESS : GEMSTONES AND
PRECIOUS STONES
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 February 24, 2003
as a private
limited company under
the registered name HALITE TRADING
CO., LTD., by Thai
and Indian groups,
with the business
objective to import, distribute
and export gemstones
and precious stones
for jewelry business.
It currently employs
2 staff.
The
subject’s registered address
is Room 204, 2nd Floor,
Poonmanee Building, 30, 32, 34, 36 Soi Mahesak 3, Mahesak Road, Suriyawongse,
Bangrak, Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Parikh Rajendra Kumar Vipinchandra |
|
Indian |
41 |
|
Mr. Patel Darshan Kumar
Madhukant |
|
Indian |
41 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Parikh Rajendra Kumar
Vipinchandra is the
Managing Director.
He is Indian
nationality with the
age of 41 years
old.
BUSINESS OPERATIONS
The subject
is engaged in importing,
distributing and re-exporting
various kinds of
gemstones and precious stones such
as ruby stones,
yellow sapphire, white
sapphire, blue sapphire, as
well as exporting
of the local
products for jewelry
trading and production.
PURCHASE
The products are
purchased from suppliers
both domestic and
overseas in India.
SALES
The products are
sold to jewelry
traders and manufacturers
both local and
overseas in Hong
Kong and India.
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.
Imports are by
T/T.
Exports are against
T/T.
BANKING
N/A
EMPLOYMENT
The
subject currently employs
2 staff.
LOCATION DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in a prime
commercial area.
COMMENT
Subject’s performance was
related to the
conditions of local
consumption, which has
expanded slowly in
the past two
years. However, the
subject reported moderate
sales in the year
2014, meanwhile its
business has grown
slowly 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.
The
capital was increased
later as follows:
Bht. 4,000,000
on March 26,
2003
Bht. 5,000,000
on August 29,
2007
The
latest registered capital
was increased to
Bht. 5,000,000 divided
into 50,000 shares
of Bht. 100 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE
[as
at August 21,
2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Parikh Rajendra Kumar
Vipinchandra Nationality: Indian Address : Cambay,
India |
11,250 |
22.50 |
|
Mr. Patel Darshan Kumar
Madhukant Nationality: Indian Address : 410/184
Surawong Road, Siphaya,
Bangrak, Bangkok |
11,250 |
22.50 |
|
Ms. Anchalee Sakaew Nationality: Thai Address : 30, 32, 34, 36 Soi
Mahesak 3, Mahesak Road,
Suriyawongse, Bangrak, Bangkok |
6,875 |
13.75 |
|
Ms. Rujilapha Thonglor Nationality: Thai Address : 30, 32, 34, 36 Soi
Mahesak 3, Mahesak
Road, Suriyawongse, Bangrak,
Bangkok |
6,875 |
13.75 |
|
Mr. Apichote Thonglor Nationality: Thai Address : 30, 32, 34, 36 Soi
Mahesak 3, Mahesak
Road,
Suriyawongse, Bangrak, Bangkok
|
6,875 |
13.75 |
|
Ms. Rita Kamdam Nationality: Thai Address : 30, 32, 34, 36 Soi
Mahesak 3, Mahesak
Road,
Suriyawongse, Bangrak, Bangkok |
6,875 |
13.75 |
Total Shareholders : 6
Share Structure [as
at August 21,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
27,500 |
55.00 |
|
Foreign - Indian |
2 |
22,500 |
45.00 |
|
Total |
6 |
50,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mr. Thamrongsak Sukhochaiwanich No.
10217
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 |
1,275,513.70 |
2,681,530.21 |
1,549,045.57 |
|
Trade Accounts &
Other Receivable |
22,220,991.94 |
11,131,546.19 |
10,642,347.76 |
|
Inventories |
5,910,005.67 |
9,362,286.03 |
10,625,777.69 |
|
Other Current Assets
|
- |
1,535.04 |
3,342.73 |
|
|
|
|
|
|
Total Current Assets
|
29,406,511.31 |
23,176,897.47 |
22,820,513.75 |
|
|
|
|
|
|
Fixed Assets |
5.00 |
5.00 |
5.00 |
|
Total Assets |
29,406,516.31 |
23,176,902.47 |
22,820,518.75 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institutions |
10,006,268.08 |
- |
- |
|
Trade Accounts & Other
Payable |
10,433,606.38 |
10,434,066.38 |
10,430,066.38 |
|
Short-term Loan |
4,900,000.00 |
9,700,000.00 |
9,900,000.00 |
|
Accrued Income Tax |
193,710.65 |
21,118.48 |
26,047.39 |
|
Other Current Liabilities |
195,467.73 |
3,967.69 |
3,504.37 |
|
|
|
|
|
|
Total Current Liabilities |
25,729,052.84 |
20,159,152.55 |
20,359,618.14 |
|
Total Liabilities |
25,729,052.84 |
20,159,152.55 |
20,359,618.14 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized and
issued share capital
50,000 shares |
5,000,000.00 |
5,000,000.00 |
5,000,000.00 |
|
|
|
|
|
|
Capital Paid |
5,000,000.00 |
5,000,000.00 |
5,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
[1,322,536.53] |
[1,982,250.08] |
[2,539,099.39] |
|
Total Shareholders' Equity |
3,677,463.47 |
3,017,749.92 |
2,460,900.61 |
|
Total Liabilities &
Shareholders' Equity |
29,406,516.31 |
23,176,902.47 |
22,820,518.75 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
32,288,546.32 |
15,695,828.25 |
8,686,443.98 |
|
Gain on Exchange Rate |
22,661.85 |
396,445.56 |
7,975,783.64 |
|
Other Income |
1,572.07 |
23,215.45 |
52,801.42 |
|
Total Revenues |
32,312,780.24 |
16,115,489.26 |
16,715,029.04 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
28,749,417.71 |
13,156,547.73 |
13,726,242.30 |
|
Selling Expenses |
707,041.41 |
407,397.14 |
337,572.37 |
|
Administrative Expenses |
1,923,735.27 |
1,948,889.84 |
2,034,103.58 |
|
Other Expenses |
9,529.05 |
407.06 |
- |
|
Total Expenses |
31,389,723.44 |
15,513,241.77 |
16,097,918.25 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
923,056.80 |
602,247.49 |
617,110.79 |
|
Financial Cost |
[69,032.60] |
- |
- |
|
Profit / [Loss] before Income
Tax |
854,024.20 |
602,247.49 |
617,110.79 |
|
Income Tax |
[194,310.65] |
[45,398.18] |
[71,047.39] |
|
|
|
|
|
|
Net Profit / [Loss] |
659,713.55 |
556,849.31 |
546,063.40 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.14 |
1.15 |
1.12 |
|
QUICK RATIO |
TIMES |
0.91 |
0.69 |
0.60 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
6,457,709.26 |
3,139,165.65 |
1,737,288.80 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.10 |
0.68 |
0.38 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
75.03 |
259.74 |
282.55 |
|
INVENTORY TURNOVER |
TIMES |
4.86 |
1.41 |
1.29 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
251.19 |
258.86 |
447.19 |
|
RECEIVABLES TURNOVER |
TIMES |
1.45 |
1.41 |
0.82 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
132.46 |
289.47 |
277.35 |
|
CASH CONVERSION CYCLE |
DAYS |
193.76 |
229.13 |
452.39 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
89.04 |
83.82 |
158.02 |
|
SELLING & ADMINISTRATION |
% |
8.15 |
15.01 |
27.30 |
|
INTEREST |
% |
0.21 |
- |
- |
|
GROSS PROFIT MARGIN |
% |
11.04 |
18.85 |
34.41 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.86 |
3.84 |
7.10 |
|
NET PROFIT MARGIN |
% |
2.04 |
3.55 |
6.29 |
|
RETURN ON EQUITY |
% |
17.94 |
18.45 |
22.19 |
|
RETURN ON ASSET |
% |
2.24 |
2.40 |
2.39 |
|
EARNING PER SHARE |
BAHT |
13.19 |
11.14 |
10.92 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.87 |
0.87 |
0.89 |
|
DEBT TO EQUITY RATIO |
TIMES |
7.00 |
6.68 |
8.27 |
|
TIME INTEREST EARNED |
TIMES |
13.37 |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
105.71 |
80.69 |
|
|
OPERATING PROFIT |
% |
53.27 |
(2.41) |
|
|
NET PROFIT |
% |
18.47 |
1.98 |
|
|
FIXED ASSETS |
% |
- |
- |
|
|
TOTAL ASSETS |
% |
26.88 |
1.56 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 105.71%. Turnover has increased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.04 |
Acceptable |
Industrial
Average |
16.41 |
|
Net Profit Margin |
2.04 |
Impressive |
Industrial
Average |
1.41 |
|
Return on Assets |
2.24 |
Acceptable |
Industrial
Average |
3.02 |
|
Return on Equity |
17.94 |
Impressive |
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 11.04%. 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 2.04%, higher figure when compared with those
of its average competitors in the same industry, indicated that business was an
efficient operator in a dominant
position within its industry.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. When compared with the
industry average, it was lower, the company's figure is 2.24%.
Return on Equity indicates how profitable a company is by comparing its
net income to its average shareholders' equity, ROE measures how much the
shareholders earned for their investment in the company. Return on Equity ratio
is 17.94%, 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 Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.14 |
Acceptable |
Industrial
Average |
1.66 |
|
Quick Ratio |
0.91 |
|
|
|
|
Cash Conversion Cycle |
193.76 |
|
|
|
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 1.14 times in 2014, decreased from 1.15 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 0.91 times in 2014,
increased from 0.69 times, by excluding inventory, the company may have
problems meeting current liabilities.
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 194 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.87 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
7.00 |
Risky |
Industrial
Average |
1.49 |
|
Times Interest Earned |
13.37 |
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 13.38 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 0.87 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 |
6,457,709.26 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.10 |
Acceptable |
Industrial
Average |
2.14 |
|
Inventory Conversion Period |
75.03 |
|
|
|
|
Inventory Turnover |
4.86 |
Impressive |
Industrial
Average |
3.44 |
|
Receivables Conversion Period |
251.19 |
|
|
|
|
Receivables Turnover |
1.45 |
Deteriorated |
Industrial
Average |
4.11 |
|
Payables Conversion Period |
132.46 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.45 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 260 days at the
end of 2013 to 75 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 1.41 times in year 2013 to 4.86 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.1 times and 0.68
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.66.10 |
|
UK Pound |
1 |
Rs.100.89 |
|
Euro |
1 |
Rs.73.96 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.