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MIRA INFORM REPORT
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Report No. : |
510158 |
|
Report Date : |
23.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
SIAM SANITARY
WARE INDUSTRY COMPANY LIMITED |
|
|
|
|
Registered Office : |
36/11 Vibhavadee-Rangsit Road,
Sanm Bin, Donmuang, Bangkok 10210 |
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Country : |
Thailand |
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|
|
|
Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
16.06.1989 |
|
|
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Com. Reg. No.: |
0105532055202 |
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|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject’s activity
is a manufacturer, exporter
and distributor of
sanitary products as
the followings: ·
Floor
Tiles & Wall Tiles ·
Mosaic
Tiles ·
Glass
Tiles ·
Toilet & Bathroom ·
Basins ·
Faucets ·
Showers ·
Bathtubs ·
Bidets & Urinals ·
Flush
Valve ·
Accessories ·
Spare
Parts |
|
|
|
|
No. of Employees : |
900 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
B |
|
Credit Rating |
Explanation |
Rating Comments |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
Status : |
Moderate |
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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
|
Country Name |
Previous
Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
Thailand |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
THAILAND - ECONOMIC OVERVIEW
With a relatively well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, Thailand is highly dependent on international trade, with exports accounting for about two-thirds of GDP. Thailand’s exports include electronics, agricultural commodities, automobiles and parts, and processed foods. The industry and service sectors produce about 90% of GDP. The agricultural sector, comprised mostly of small-scale farms, contributes only 10% of GDP but employs about one-third of the labor force. Thailand has attracted an estimated 3.0-4.5 million migrant workers, mostly from neighboring countries.
Over the last few decades, Thailand has reduced poverty substantially. In 2013, the Thai Government implemented a nationwide 300 baht (roughly $10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners.
Thailand’s economy is recovering from slow growth during the years since the 2014 coup. Thailand’s economic fundamentals are sound, with low inflation, low unemployment, and reasonable public and external debt levels. Tourism and government spending - mostly on infrastructure and short-term stimulus measures – have helped to boost the economy, and The Bank of Thailand has been supportive, with several interest rate reductions.
Over the longer-term, household debt levels, political uncertainty, and an aging population pose risks to growth.
|
Source
: CIA |
Company name
SIAM SANITARY WARE INDUSTRY COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 36/11 VIBHAVADEE-RANGSIT ROAD,
SANM BIN,
DONMUANG,
BANGKOK 10210, THAILAND
TELEPHONE : [66] 2973-5040-54
FAX : [66] 2973-3474
E-MAIL ADDRESS : ssw@cementhai.co.th
cottolib@scg.co.th
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1989
REGISTRATION NO. : 0105532055202
TAX ID NO. : 3101723984
CAPITAL REGISTERED : BHT.
200,000,000
CAPITAL PAID-UP : BHT.
200,000,000
SHAREHOLDER’S PROPORTION : THAI
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR.
AREE CHAVALITCHEEWINGUL, THAI
PRESIDENT
NO. OF STAFF : 900
LINES OF BUSINESS : SANITARY PRODUCTS
MANUFACTURER, EXPORTER AND 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
initially established on June 16, 1989
as a private
limited company under the registered name SIAM
SANITARY WARE INDUSTRY
COMPANY LIMITED initially
by a joint
venture between the
Siam Cement Public
Company Limited and
Toto (Japan) Co., Ltd., in order
to manufacture sanitary
products under the brands “COTTO” and “TOTO”. Its
production facilities is
located at Nongkae
District, Saraburi Province.
.
At present, subject is
a wholly owned
subsidiary of Siam
Sanitary Ware Company
Limited, which is a member
of SCG Group of
Companies. Subject currently
employs approximately 900
staff
The subject achieved
the international standard
ISO 14001 and ISO 9002
certificates from SGS
YARSLEY International and
MASCI on March
24, 2000 and
May 8, 2000 respectively.
The subject’s registered
address was initially
located at 33/11 Vibhavadee-Rangsit Rd., Seekan,
Donmuang, Bangkok 10210.
On March 2, 2010, its
registered address was
changed to 36/11
Vibhavadee-Rangsit Rd., Sanam Bin, Donmuang, Bangkok
10210, by the
Donmuang District Office.
However, they are
the same location and
this is also the
subject’s current operation
address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Pichit Maipoom |
|
Thai |
62 |
|
Mr. Kajohndet Sangsuban |
|
Thai |
65 |
|
Mr. Nithi Patarachoke |
|
Thai |
55 |
|
Mr. Buntoon Porapukham |
|
Thai |
50 |
|
Mr. Aree Chavalitcheewingul |
|
Thai |
55 |
AUTHORIZED PERSON
Two of the
above directors can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Aree Chavalitcheewingul is
the President.
He is Thai
nationality with the
age of 55
years old.
Mr. Nithi Patarachoke is
the Managing Director.
He is Thai
nationality with the
age of 55
years old.
Mr. Pitaya Paiboon
is the Sales & Marketing Manager.
He is Thai
nationality.
Mr. Sikharesh Singhaphan is
the Factory Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer,
exporter and distributor
of sanitary products
as the followings:
Floor Tiles & Wall Tiles
Mosaic Tiles
Glass Tiles
Toilet & Bathroom
Basins
Faucets
Showers
Bathtubs
Bidets & Urinals
Flush Valve
Accessories
Spare Parts
Etc.
MAJOR BRANDS
“COTTO” and “TOTO”
PURCHASE
Most of raw materials
are purchased from
local suppliers and
agents, the remaining is
imported from France,
Germany, Netherlands, Japan, Taiwan
and Republic of China.
SALES
80% of the products
is sold locally
by wholesale to
dealers nationwide, the
remaining 20% is
exported to Brunei,
Singapore, Republic of
China, Vietnam, Japan, Taiwan, Hong Kong, France,
United Kingdom, Germany,
Malaysia, India, Australia,
Indonesia, United States of
America, Laos, Korea
and United Arab
Emirates.
RELATED COMPANIES
The Siam Sanitary
Fitting Co., Ltd.
Business Type : Manufacturer
of sanitary equipment
Siam Sanitary Ware
Industry (Nongkae) Co., Ltd.
Business Type : Manufacturer
of sanitary 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 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
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BANKING
TMB Bank Public
Company Limited
[Head Office : 3000 Phaholyothin Rd.,
Jompol, Jatujak, Bangkok 10900]
The Siam Commercial
Bank Public Company
Limited
[Head Office : 9
Ratchadapisek Rd., Jompol,
Jatujak, Bangkok 10900]
Kasikornbank Public Company
Limited
EMPLOYMENT
The subject employs
approximately 900 office
staff and factory
workers.
LOCATION DETAILS
The premise is
owned for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Factory & warehouse : 33/4
Moo 2, Suwannasorn Rd., T. Kokyae, A. Nongkae,
Saraburi 18230. Tel
: [66] 36 371-432,
36 379-018, Fax :
[66] 36 371-449.
Branch : 43/4 Nimmanhamin
Rd., T. Suthep, A. Muang,
Chiangmai 50200
COMMENT
The subject is a manufacturer
of sanitary ware (toilet, urinal, bathtub, shower room and accessories) and fittings (faucet,
shower) under the brands
"COTTO", "TOTO".
It is one
of the most leading
brands of sanitary ware
for middle to high end
market. Subject has
a solid business
and growing significantly each year.
Though, the subject’s
operating performance in 2017
was slowdown from
a decrease in
both sales or
service income and
net profit comparing
to the previous year, it is
still promising and recognized by
local consumers.
FINANCIAL INFORMATION
The capital was
registered at Bht. 30,000,000 divided
into 300,000 shares of
Bht. 100 each.
On June 28,
1995 the capital
was increased to
Bht. 200,000,000 divided into
2,000,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 20,
2018]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Siam Sanitary Ware
Company Limited Nationality : Thai Address : 36/11
Vibhavadee-Rangsit Rd., Sanam Bin,
Donmuang, Bangkok |
1,999,998 |
100.00 |
|
Mr. Buntoon Porapukham Nationality : Thai Address : 337/206
T. Thasai, A. Muang, Nonthaburi
|
1 |
- |
|
Mrs. Veeranuch Settameteekul Nationality : Thai Address : 40/29
Moo 6, T. Kukot,
A. Lamlukka,
Pathumthani |
1 |
- |
Total Shareholders : 3
Share Structure [as
at April 20,
2018]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
2,000,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
2,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Wairoj Chindamaneepitak No.
3565
BALANCE SHEET [BAHT]
The latest financial
figures published for December
31, 2017, 2016
and 2015 were:
ASSETS
|
Current Assets |
2017 |
2016 [Adjusted] |
2015 |
|
|
|
|
|
|
Cash and Cash Equivalents |
98,450,509 |
90,287,876 |
12,370,103 |
|
Trade Accounts and
Other Receivable |
718,305,554 |
624,548,773 |
523,025,082 |
|
Inventories |
505,628,610 |
408,641,078 |
437,460,511 |
|
Other Current Assets |
7,247,974 |
- |
11,679,084 |
|
Total Current Assets
|
1,329,632,647 |
1,123,477,727 |
984,534,780 |
|
|
|
|
|
|
Property, Plant and
Equipment |
621,588,986 |
655,376,187 |
623,285,008 |
|
Intangible Assets |
15,279,462 |
19,545,860 |
23,418,930 |
|
Deferred Income Tax |
25,897,539 |
24,591,542 |
21,233,350 |
|
Other Non-current Assets |
51,374,525 |
62,754,804 |
67,598,274 |
|
Total Assets |
2,043,773,159 |
1,885,746,120 |
1,720,070,342 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2017 |
2016 [Adjusted] |
2015 |
|
|
|
|
|
|
Bank Overdraft and Short-term Loan From Financial Institutions |
- |
- |
9,832,841 |
|
Trade Accounts and Other
Payable |
626,791,980 |
552,858,185 |
460,019,118 |
|
Short-term Loans |
199,000,000 |
126,000,000 |
98,000,000 |
|
Accrued Income Tax |
- |
775,727 |
- |
|
Other Current Liabilities |
- |
- |
10,498,938 |
|
Total Current Liabilities |
825,791,980 |
679,633,912 |
578,350,897 |
|
|
|
|
|
|
Employee Benefit Obligations |
104,671,951 |
97,072,041 |
88,742,936 |
|
Total Liabilities |
930,463,931 |
776,705,953 |
667,093,833 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, and
issued share capital
2,000,000 shares
|
200,000,000 |
200,000,000 |
200,000,000 |
|
Capital Paid |
200,000,000 |
200,000,000 |
200,000,000 |
|
Retained Earnings: [Deficit] |
|
|
|
|
Appropriated statutory
reserve |
20,000,000 |
20,000,000 |
20,000,000 |
|
Unappropriated |
893,309,228 |
889,040,167 |
832,976,509 |
|
Total Shareholders’ Equity |
1,113,309,228 |
1,109,040,167 |
1,052,976,509 |
|
Total Liabilities and
Shareholders’ Equity |
2,043,773,159 |
1,885,746,120 |
1,720,070,342 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2017 |
2016 [Adjusted] |
2015 |
|
|
|
|
|
|
Sales or Services Income |
4,825,959,944 |
4,893,905,828 |
5,015,772,598 |
|
Other Income |
84,117,954 |
32,672,532 |
82,011,298 |
|
Total Revenues |
4,910,077,898 |
4,926,578,360 |
5,097,783,896 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold or Services |
3,926,107,332 |
3,810,174,810 |
3,804,852,270 |
|
Selling Expenses |
597,229,132 |
666,408,020 |
362,062,293 |
|
Administrative Expenses |
381,050,087 |
381,034,938 |
844,849,090 |
|
Total Expenses |
4,904,386,551 |
4,857,617,768 |
5,011,763,653 |
|
|
|
|
|
|
Profit /[Loss] before
Financial Cost and Income Tax |
5,691,347 |
68,960,592 |
86,020,243 |
|
Financial Cost |
[1,675,798] |
[1,537,597] |
[1,833,557] |
|
|
|
|
|
|
Profit /[Loss] before Income
Tax |
4,015,549 |
67,422,995 |
84,186,686 |
|
Expenses [Income] Income
Tax |
253,512 |
[11,359,337] |
[17,588,947] |
|
Net Profit / [Loss] |
4,269,061 |
56,063,658 |
66,597,739 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2017 |
2016 |
2015 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.61 |
1.65 |
1.70 |
|
QUICK RATIO |
TIMES |
0.99 |
1.05 |
0.93 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.76 |
7.47 |
8.05 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.36 |
2.60 |
2.92 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
47.01 |
39.15 |
41.97 |
|
INVENTORY TURNOVER |
TIMES |
7.76 |
9.32 |
8.70 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
54.33 |
46.58 |
38.06 |
|
RECEIVABLES TURNOVER |
TIMES |
6.72 |
7.84 |
9.59 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
58.27 |
52.96 |
44.13 |
|
CASH CONVERSION CYCLE |
DAYS |
43.06 |
32.77 |
35.90 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
81.35 |
77.86 |
75.86 |
|
SELLING & ADMINISTRATION |
% |
20.27 |
21.40 |
24.06 |
|
INTEREST |
% |
0.03 |
0.03 |
0.04 |
|
GROSS PROFIT MARGIN |
% |
20.39 |
22.81 |
25.78 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.12 |
1.41 |
1.71 |
|
NET PROFIT MARGIN |
% |
0.09 |
1.15 |
1.33 |
|
RETURN ON EQUITY |
% |
0.38 |
5.06 |
6.32 |
|
RETURN ON ASSET |
% |
0.21 |
2.97 |
3.87 |
|
EARNING PER SHARE |
BAHT |
2.13 |
28.03 |
33.30 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.46 |
0.41 |
0.39 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.84 |
0.70 |
0.63 |
|
TIME INTEREST EARNED |
TIMES |
3.40 |
44.85 |
46.91 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(1.39) |
(2.43) |
|
|
OPERATING PROFIT |
% |
(91.75) |
(19.83) |
|
|
NET PROFIT |
% |
(92.39) |
(15.82) |
|
|
FIXED ASSETS |
% |
(5.16) |
5.15 |
|
|
TOTAL ASSETS |
% |
8.38 |
9.63 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -1.39%. Turnover has decreased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
20.39 |
Satisfactory |
Industrial Average |
23.97 |
|
Net Profit Margin |
0.09 |
Deteriorated |
Industrial Average |
3.44 |
|
Return on Assets |
0.21 |
Deteriorated |
Industrial Average |
6.30 |
|
Return on Equity |
0.38 |
Deteriorated |
Industrial Average |
11.56 |
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 20.39%. 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 0.09%.
When compared with the industry average, the ratio of the company was lower.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. When compared with the
industry average, it was lower, the company's figure is 0.21%.
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 0.38%.
Trend of the average
competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.61 |
Satisfactory |
Industrial Average |
1.62 |
|
Quick Ratio |
0.99 |
|
|
|
|
Cash Conversion Cycle |
43.06 |
|
|
|
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 1.61 times in 2017, decrease from 1.65 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 0.99 times in 2017,
decrease from 1.05 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 44 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.46 |
Acceptable |
Industrial Average |
0.42 |
|
Debt to Equity Ratio |
0.84 |
Impressive |
Industrial Average |
0.72 |
|
Times Interest Earned |
3.40 |
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 lower the percentage means that the company is using less
leverage and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 3.4 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 0.46 less than 0.5, most of the company's
assets are financed through equity.
Trend of the average
competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Stable
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
7.76 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
2.36 |
Impressive |
Industrial Average |
1.83 |
|
Inventory Conversion Period |
47.01 |
|
|
|
|
Inventory Turnover |
7.76 |
Impressive |
Industrial Average |
7.24 |
|
Receivables Conversion Period |
54.33 |
|
|
|
|
Receivables Turnover |
6.72 |
Satisfactory |
Industrial Average |
7.77 |
|
Payables Conversion Period |
58.27 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.72 and
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has increased from 39 days at the
end of 2016 to 47 days at the end of 2017. This represents a negative trend.
And Inventory turnover has decreased from 9.32 times in year 2016 to 7.76 times
in year 2017.
The company's Total Asset Turnover is calculated as 2.36 times and 2.6
times in 2017 and 2016 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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 67.95 |
|
|
1 |
INR 91.87 |
|
Euro |
1 |
INR 80.27 |
|
Thai Baht |
1 |
INR 2.13 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRI |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.