Financial Strength Assessment

Financial Strength Assessment for Vendors

In ever-evolving, dynamic business scenarios identifying the sound and stable vendors / clients as well as cost efficiency is the only possible way out left for the corporates to manage profitability. In such a scenario, dealing with an organization having sound financials is a must to protect the business interests and sustain profit levels. A corporate’s financial soundness significantly depends on the counter party credit risk it carries while dealing with its vendor who provides material / services or buyers whom the corporate supplies the finish goods.

MPFASL provides Financial Strength Assessment service to Corporates to arrive at financial soundness of its stakeholders (buyers, suppliers, contractors, service providers) so as to have proper checks on exposure to each entity. This would not only provide stability to the operations but also limit the probable losses due to vulnerability of these stakeholders at the time of distress.

The Financial Strength Assessment would be focused on the ability of an entity to carry out day to day business in an orderly fashion. The assessment would provide an opinion on the robustness of the business operations of such stakeholder and also provide views on the vulnerability of the stakeholders in testing times which can lead to stoppage of work, liquidity crunch etc. The financial strength assessment is primarily based on –

  • Track record of the promoter
  • Operational efficiency
  • Financial strength
  • Industry position

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