MIRA
INFORM REPORT
|
Report Date : |
07.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
AJINOMOTO COMPANY [THAILAND] LIMITED |
|
|
|
|
Registered Office : |
5th Floor, Sri Ayudhya Building, 487/1 Sri Ayudhya Road, Thanon Phyathai, Rajthevee, Bangkok 10400 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2011 |
|
|
|
|
Date of Incorporation : |
29.04.1960 |
|
|
|
|
Com. Reg. No.: |
0105503000586 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Exporter & Distributor of Food Seasoning |
|
|
|
|
No. of Employees : |
1,500 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
AJINOMOTO
COMPANY [THAILAND] LIMITED
SUMMARY
BUSINESS
ADDRESS : 5th FLOOR,
SRI AYUDHYA BUILDING,
487/1 SRI
AYUDHYA ROAD, THANON
PHYATHAI,
RAJTHEVEE, BANGKOK
10400, THAILAND
TELEPHONE : [66] 2245-1614,
2247-7000
FAX :
[66] 2246-3887,
2247-7016, 2248-7997
E-MAIL
ADDRESS : info@bkk.ajinomoto.com
REGISTRATION
ADDRESS : SAME AS
BUSINESS ADDRESS
ESTABLISHED
: 1960
REGISTRATION
NO. : 0105503000586 [Former : 87/2503]
CAPITAL REGISTERED : BHT. 796,362,800
CAPITAL PAID-UP : BHT.
796,362,800
SHAREHOLDER’S PROPORTION : THAI :
25.73%
FOREIGN :
74.27%
FISCAL YEAR CLOSING DATE : MARCH
31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
YOICHIRO TOGASHI, JAPANESE
PRESIDENT
NO.
OF STAFF : 1,500
LINES
OF BUSINESS : FOOD
SEASONING
MANUFACTURER, EXPORTER
& DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on April 29,
1960 as a
private limited company
under the name
style AJINOMOTO COMPANY [THAILAND]
LIMITED led by
Ajinomoto Ltd., Japan and
Thai investors, in order
to manufacture food seasoning
and animal nutrition
products for local
market. The “AJINOMOTO”
animal nutrition network
has 6 factories
producing “L-Lysine HCI” around
the world. They
are in France, U.S.A.,
China, Brazil, Italy
and Thailand.
The subject
was granted an investment privilege
promotional from the Board
of Investment [BOI],
under the certificate
No. 1641/2539 and 1020 (1)/2545, on
September 30, 1996
and January 9,
2002 respectively, for
its production. It
currently employs 1,500
staff.
The
subject’s registered address
is 5th Flr., Sri Ayudhya
Bldg., 487/1 Sri Ayudhya
Rd., Thanon Phyathai,
Rajthevee, Bangkok 10400,
and this is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Wing Com. Tinnakorn Bhankravi |
Chairman [x] |
Thai |
93 |
|
Mr. Yoichiro Togashi |
[x] |
Japanese |
58 |
|
Mr. Eiji Majima |
[x] |
Japanese |
53 |
|
Mr. Motoaki Nishii |
|
Japanese |
51 |
|
Mr. Apirat Rattanaparadorn |
|
Thai |
62 |
|
Mr. Hiroyuki Ohara |
|
Japanese |
43 |
|
Mr. Hiroyuki Suzuki |
|
Japanese |
51 |
|
Mr. Hiroki Kawashima |
|
Japanese |
55 |
|
Mr. Masazumi Tanimura |
|
Japanese |
47 |
|
Mr. Masato Kohtani |
|
Japanese |
48 |
|
Mr. Suchart Narksawek |
|
Thai |
57 |
|
Mr. Suradech Thiapairat |
|
Thai |
56 |
|
Mr. Keichi Yokoyama |
|
Japanese |
62 |
AUTHORIZED PERSON
Any of the
mentioned directors [x]
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Yoichiro Togashi
is the President.
He is Japanese
nationality with the
age of 58
years old.
Mr. Eiji Majima is
the Vice President.
He is Thai
nationality with the
age of 53
years old.
Mr. Varong Kraiyoonpong is
the Accounting &
Finance Manager.
He is Thai
nationality.
Mr. Thongdee Pasai
is the Factory
Manager [Pathumthani].
He is Thai nationality.
Mr. Suradej Thiempairat
is the Factory
Manager [Kampaengpetch].
He is Thai
nationality.
Mr. Sorachai Kusanchai
is the Factory
Manager [Prapadaeng].
He is Thai
nationality.
Mr. Hideki Okamura
is the Factory
Manager [Saraburi].
He is Japanese
nationality.
BUSINESS OPERATIONS
The subject is engaged in manufacturing of food ingredient, food
seasoning and related products as
followings:
Products Brand
Food ingredient & enzyme products “AJI-NO-MOTO”, “I PLUS G”,
“TECHNO”
“AJITIDE I
+G”, “ACTIVA TG”,
“CHOICE”
“ROSDEE COOK
CHOICE”, “MENTSUYA”,
“HON-DASHI”, “AJINOMOTO
DRESSING”
Seasoning products “AJINOMOTO”, “ROSDEE”, “SOUP DEE”
“LITE SUGAR”, “ROSDEE KRUE
KROB
-
ROS”, TAKUMI-AJI”
Instant noodle products “YUM YUM”
Beverage products “CALPIS LACTO”,
“BIRDY”, “SKINFIT”,
“BRANE FIT”
Processed food products “BIRDY
3 IN 1”,
“VONO”,
“BIRDY CANDY”
Animal nutrition products “AJI-NO-MOTO”,
Frozen food products “AJI-NO-MOTO”,
In Thailand, AJINOMOTO food ingredients
are made from
molasses derived from
sugarcane and tapioca
starch from cassava
roots through the
Fermentation Process.
PURCHASE
80% of
its natural raw
materials such as
tapioca starch, sugarcane
molasses and etc., are purchased from
local suppliers and
planters, and the
remaining 20% especially
chemical is imported
from Japan, Singapore, Republic of China, United
States of America,
Taiwan and Germany.
MAJOR
SUPPLIERS
Ajinomoto Ltd. : Japan
Ajinomoto Calpis Beverage [Thailand] Co.,
Ltd. : Thailand
Ajinomoto Frozen Foods [Thailand] Co.,
Ltd. : Thailand
AQY Sauce Co.,
Ltd. : Thailand
SALES
[LOCAL]
90%
of the products
is sold locally
to food manufacturers, wholesalers
and end-users, the
remaining 10% is
exported to Japan.
MAJOR
CUSTOMER
Ajinomoto
Sales [Thailand] Co.,
Ltd.
PARENT COMPANY
Ajinomoto Ltd.
Address : 15-1 Kyobashi 1-Chome, Chuo-Ku,
Tokyo, Japan
SUBSIDIARY COMPANIES
Myanmar Ajinomoto Ltd.
Business Type : Manufacturer
of food seasoning
products
Investment : The
subject holds 99.80%
of the company’s shares.
Myanmar Ajinomoto Industry
Co., Ltd.
Business Type : Manufacturer
of food seasoning
products
Investment : The
subject holds 100%
of the company’s
shares.
ASSOCIATED COMPANIES
Wan Thai Foods
Industry Co., Ltd.
Business Type: Manufacturer of
noodle products
Ajinomoto Sales [Thailand]
Co., Ltd.
Business Type: Manufacturer & distributing of
beverage products
Si Ayuthaya Real
Estate Co., Ltd.
Business Type : Real estate
business
Erawan Industrial Development
Co., Ltd.
Business Type : Distributor of
food products.
Ajitrade [Thailand] Co., Ltd.
Business Type :
Importer and distributor
of industrial machines
and equipment.
Bangkok Animal Research
Center Co., Ltd.
Business Type :
Animal production technology
research & development
service.
ACE Pack [Thailand]
Co., Ltd..
Business Type :
Distributor of packaging
products.
Ajinomoto Engineering 2001
[Thailand] Co., Ltd.
Business Type :
Construction and engineering
service.
AB Logistics [Thailand]
Co., Ltd.
Business Type :
Transportation & logistics
service.
F D Green [Thailand]
Co., Ltd.
Business Type :
Manufacturer & distributor
Ajinomoto Betagro Specialty
Foods Co., Ltd.
Business Type :
Manufacturer of food
products.
Ajinomoto Calpis Beverage
[Thailand] Co., Ltd.
Business Type :
Manufacturer & distributor
of beverage products
Itoham Betagro Foods
Co., Ltd.
Business Type :
Manufacturer of beverage
products.
Fuji Ace Co.,
Ltd.
Business Type :
Manufacturer of plastic
film and packaging
service provider.
AET Manufacturing Co.,
Ltd.
Business Type :
Manufacturer of rubber
lining products.
Ajinomoto Frozen Foods
[Thailand] Co., Ltd.
Business Type :
Manufacturer of frozen foods.
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 on the
credits term of
30-60 days.
Local
bills are paid
by cash or
on the credits
term of 30-60-90
days.
Imports
are by L/C
at sight, D/A
or T/T on
negotiated term.
Exports
are against T/T.
BANKING
Kasikornbank
Public Co., Ltd.
[Head Office : 1 Kasikorn Lane,
Rajburana Rd., Rajburana, Bangkok 10140]
Bank
of Tokyo-Mitsubishi Corporation
[Bangkok Branch : 54 North
Sathorn Rd., Silom,
Bangrak, Bangkok 10500]
Krung
Thai Bank Public
Co., Ltd.
[Head Office : 35 Sukhumvit Rd.,
Klongtoeynua, Wattana, Bangkok
10110]
Thanachart
Bank Public Co., Ltd.
[Head Office : 1101 New Petchburi Rd.,
Rajthevee, Bangkok 10400]
EMPLOYMENT
The
subject employs approximately
1,500 staff [office
staff and factory
workers].
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial area.
Factories
:
Factory
I : 6 Moo 2, Suksawad
Rd., Bangkru, Phrapradaeng,
Samutprakarn 10270.
Factory
II : 99 Moo 1,
Bangkradeesainai Rd., Bangkradee,
Muang, Pathumthani 12000.
Factory
III : 369 Moo 3,
Saikampaengphet-Thamakua
Rd., Kontee, Muang,
Kampaengphet
62000
Factory
IV : 58/1 Moo 1,
Pathumthanee-Ladlumkaew Rd., Ladlumkaew,
Pathumthanee
12000.
Factory
V : 45 Moo 14,
Phaholyothin Rd., Kokyae,
Nongkae, Saraburi 18140
Factory
VI : 55/5 Moo 2,
Bangrakam, Nakornluang, Ayuthaya
13260
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
100,000,000.
COMMENT
Ajinomoto
Co., (Thailand) Ltd. was
formed in 1960,
as the first overseas
production base of
Ajinomoto Co., Inc., Japan. As of
now, the company
has gone through
immense diversification, with the
establishment of 18
group companies employing
over 5,000 staff
in the manufacture of a variety
products. With its advanced
technology, only high
quality products have
been produced that
meet all of
consumers’ needs. Its
various products have
long been trusted
by consumers both
household and commercial
users.
Growth
from strong domestic
consumption remains upbeat.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht.
25,000,000 divided into
25,000 shares of Bht. 1,000
each.
The
capital was increased
later as follows:
Bht. 384,048,500
on May 16,
1988
Bht. 460,858,200
on May 18,
1989
Bht. 663,635,700
on June 24,
1991
Bht. 796,362,800
on July 1,
1992
The
latest registered capital was
increased to Bht. 796,362,800
divided into 7,963,628 shares
of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
June 3, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ajinomoto Ltd. Nationality: Japanese Address : 15-1
Kyobashi 1-Chome, Chuo-Ku, Tokyo Japan |
5,913,920 |
74.26 |
|
Thanachart Bank Public
Co., Ltd. Nationality: Thai Address : 1101
New Petchburi Rd.,
Rajthevee,
Bangkok 10400 |
477,816 |
6.00 |
|
Kasikornbank Public Co.,
Ltd. Nationality: Thai Address : 1
Rajburana Rd., Rajburana,
Bangkok 10140 |
398,183 |
5.00 |
|
Ajinomoto Foundation Nationality: Thai Address : 487/1
Sri Ayudhya Rd.,
Rajthevee,
Bangkok 10400 |
289,586 |
3.64 |
|
Si Ayuthaya Real
Estate Co., Ltd. Nationality: Thai Address : 487/1
Sri Ayudhya Rd.,
Rajthevee,
Bangkok 10400 |
195,334 |
2.45 |
|
Ajinomoto Sales [Thailand]
Co., Ltd. Nationality: Thai Address : 487/1
Sri Ayudhya Rd.,
Rajthevee,
Bangkok 10400 |
159,784 |
2.01 |
|
Others |
529,005 |
6.64 |
Total Shareholders : 254
Share Structure [as
at June 3,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
253 |
2,049,348 |
25.73 |
|
Foreign - Japanese |
1 |
5,913,920 |
74.27 |
|
Total |
254 |
7,963,628 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Mrs. Nisakorn Songmanee No.
5035
BALANCE SHEET [BAHT]
The latest financial
figures published for
March 31, 2011
& 2010 were:
ASSETS
|
Current Assets |
2011 |
2010 [Adjusted] |
|
|
|
|
|
Cash and Cash Equivalents |
9,920,002,434 |
7,994,038,799 |
|
Cash at Bank Pledged as
a Collateral |
821,590,156 |
129,232,800 |
|
Trade Account & Notes Receivable |
2,008,992,338 |
1,949,513,584 |
|
Short Term Loan
to Related Company |
4,009,627,232 |
4,068,539,308 |
|
Inventories |
3,227,691,392 |
3,363,728,392 |
|
Forward Contract Receivable |
18,868,160 |
178,299,301 |
|
Current Portion of Receivable
and Loan to Director & Employees |
7,062,172 |
5,296,295 |
|
Refundable Value Added Tax |
157,499,471 |
774,363,873 |
|
Deferred Income |
71,038,515 |
74,154,532 |
|
Other Current Assets
|
127,820,006 |
102,740,809 |
|
Total Current Assets
|
20,370,191,876 |
18,639,907,693 |
|
Non-current Assets |
|
|
|
Investment in
Subsidiaries & Associated |
561,723,718 |
583,467,254 |
|
Other Long
Term Investment |
266,621,350 |
267,591,350 |
|
Long Term
Loan to Related Company |
2,596,068 |
2,774,021 |
|
Receivable & Loan to
Director & Employees |
10,618,011 |
5,442,652 |
|
Deferred Income Tax |
11,219,692 |
- |
|
Fixed Assets |
8,926,737,346 |
7,784,296,955 |
|
Intangible Assets |
69,541,959 |
75,849,157 |
|
Total Non-current
Assets |
9,849,058,144 |
8,719,421,389 |
|
Total Assets |
30,219,250,020 |
27,359,329,082 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 [Adjusted] |
|
|
|
|
|
Trade Accts. & Notes Payable |
1,012,308,605 |
1,006,185,098 |
|
Payable Construction |
623,101,384 |
210,450,945 |
|
Accrued Copy Right |
213,213,828 |
206,822,857 |
|
Accrued Income Tax |
801,821,668 |
377,117,485 |
|
Accrued Expenses |
318,911,010 |
331,208,238 |
|
Other Current Liabilities |
17,613,715 |
11,987,623 |
|
Total Current Liabilities |
2,986,970,210 |
2,143,772,246 |
|
Provident & Pension Fund |
112,693,277 |
97,069,745 |
|
Deferred Income Tax Liabilities |
- |
42,286,137 |
|
Total Liabilities |
3,099,663,487 |
2,283,128,128 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 7,963,628 shares |
796,362,800 |
796,362,800 |
|
Capital Paid |
796,362,800 |
796,362,800 |
|
Unrealized Loss from
Securities |
[1,447,500] |
[1,447,500] |
|
Statutory Reserve |
79,636,280 |
79,636,280 |
|
General Reserve |
19,000,000,000 |
17,500,000,000 |
|
Retained Earning -
Unappropriated |
7,245,034,953 |
6,701,649,374 |
|
Total Shareholders' Equity |
27,119,586,533 |
25,076,200,954 |
|
Total Liabilities & Shareholders' Equity |
30,219,250,020 |
27,359,329,082 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 [Adjusted] |
|
|
|
|
|
Sales |
22,148,035,827 |
20,452,908,673 |
|
Interest Income |
265,186,508 |
165,705,260 |
|
Dividend Income |
19,611,329 |
14,664,180 |
|
Other Income |
300,480,421 |
269,831,960 |
|
Total Revenues |
22,733,314,085 |
20,903,110,073 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
15,190,624,725 |
13,327,018,660 |
|
Selling Expenses |
1,166,991,568 |
1,071,820,663 |
|
Administrative Expenses |
778,584,836 |
736,349,847 |
|
Loss on Exchange Rate |
5,459,882 |
34,366,335 |
|
Total Expenses |
17,141,661,011 |
15,169,555,505 |
|
Profit / [Loss] from Income Tax |
5,591,653,074 |
5,733,554,568 |
|
Income Tax |
[1,127,324,583] |
[878,485,831] |
|
Net Profit / [Loss] |
4,464,328,491 |
4,855,068,737 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
6.82 |
8.69 |
|
QUICK RATIO |
TIMES |
5.61 |
6.60 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.48 |
2.63 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.73 |
0.75 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
77.55 |
92.13 |
|
INVENTORY TURNOVER |
TIMES |
4.71 |
3.96 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
33.11 |
34.79 |
|
RECEIVABLES TURNOVER |
TIMES |
11.02 |
10.49 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
24.32 |
27.56 |
|
CASH CONVERSION CYCLE |
DAYS |
86.34 |
99.36 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
68.59 |
65.16 |
|
SELLING & ADMINISTRATION |
% |
8.78 |
8.84 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
34.06 |
37.04 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
25.25 |
28.03 |
|
NET PROFIT MARGIN |
% |
20.16 |
23.74 |
|
RETURN ON EQUITY |
% |
16.46 |
19.36 |
|
RETURN ON ASSET |
% |
14.77 |
17.75 |
|
EARNING PER SHARE |
BAHT |
560.59 |
609.66 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.10 |
0.08 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.11 |
0.09 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
8.29 |
|
|
OPERATING PROFIT |
% |
(2.47) |
|
|
NET PROFIT |
% |
(8.05) |
|
|
FIXED ASSETS |
% |
14.68 |
|
|
TOTAL ASSETS |
% |
10.45 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
34.06 |
Impressive |
Industrial
Average |
18.74 |
|
Net Profit Margin |
20.16 |
Impressive |
Industrial
Average |
5.90 |
|
Return on Assets |
14.77 |
Impressive |
Industrial
Average |
10.25 |
|
Return on Equity |
16.46 |
Satisfactory |
Industrial
Average |
17.98 |
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 34.06%. When
compared with the industry average, the ratio of the company was higher, this
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 20.16%, 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. Return on Assets ratio is
14.77%, 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.
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 16.46%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY RATIO
|
Current Ratio |
6.82 |
Impressive |
Industrial
Average |
1.96 |
|
Quick Ratio |
5.61 |
|
|
|
|
Cash Conversion Cycle |
86.34 |
|
|
|
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 6.82 times in 2011, decreased from 8.69 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 5.61 times in 2011,
decreased from 6.6 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 87 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.10 |
Impressive |
Industrial
Average |
0.41 |
|
Debt to Equity Ratio |
0.11 |
Impressive |
Industrial
Average |
0.75 |
|
Times Interest Earned |
- |
|
Industrial
Average |
10.97 |
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.1 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 Uptrend
Times Interest Earned Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.48 |
Satisfactory |
Industrial
Average |
3.16 |
|
Total Assets Turnover |
0.73 |
Deteriorated |
Industrial
Average |
1.82 |
|
Inventory Conversion Period |
77.55 |
|
|
|
|
Inventory Turnover |
4.71 |
Acceptable |
Industrial
Average |
8.02 |
|
Receivables Conversion Period |
33.11 |
|
|
|
|
Receivables Turnover |
11.02 |
Impressive |
Industrial
Average |
6.12 |
|
Payables Conversion Period |
24.32 |
|
|
|
Trend of the average
competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.50.03 |
|
|
1 |
Rs.79.32 |
|
Euro |
1 |
Rs.66.02 |
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.