MIRA
INFORM REPORT
|
Report Date : |
03.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
THE
BANGKOK IRON &
STEEL WORKS CO.,
LTD. [BIS] |
|
|
|
|
Registered Office : |
42 Moo 4 Suksawad Road, Bangkru, Phrapradaeng, Samutprakarn 10130 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
30.09.2012 |
|
|
|
|
Date of Incorporation : |
12.11.1964 |
|
|
|
|
Com. Reg. No.: |
0105507002605 [Former : 345/2507] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, distributor &
exporter of steels |
|
|
|
|
No. of Employees : |
525 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but Correct |
|
|
|
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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, generally pro-investment policies, and strong export industries, Thailand enjoyed solid growth from 2000 to 2007 - averaging more than 4% per year - as it recovered from the Asian financial crisis of 1997-98. Thai exports - mostly machinery and electronic components, agricultural commodities, and jewelry - continue to drive the economy, accounting for more than half of GDP. The global financial crisis of 2008-09 severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. In 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded from their depressed 2009 level. Steady economic growth at just below 4% during the first three quarters of 2011 was interrupted by historic flooding in October and November in the industrial areas north of Bangkok, crippling the manufacturing sector and leading to a revised growth rate of only 0.1% for the year. The industrial sector is poised to recover from the second quarter of 2012 onward, however, and the government anticipates the economy will probably grow between 5.5 and 6.5% for 2012, while private sector forecasts range between 3.8% and 5.7%.
|
Source : CIA |
Company name
THE BANGKOK IRON & STEEL WORKS CO., LTD. [BIS]
SUMMARY
BUSINESS
ADDRESS : 42
MOO 4 SUKSAWAD
ROAD, BANGKRU,
PHRAPRADAENG, SAMUTPRAKARN
10130,
THAILAND
TELEPHONE : [66] 2463-6300-7,
2468-7042-4, 2462-5201-2
FAX :
[66] 2818-6558
E-MAIL
ADDRESS : bisw@lox2.loxinfo.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1964
REGISTRATION
NO. : 0105507002605 [Former
: 345/2507]
TAX
ID NO. : 3101093438
CAPITAL REGISTERED : BHT. 3,000,000,000
CAPITAL PAID-UP : BHT.
3,000,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : SEPTEMBER 30
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
AMNUAY PICHITPONGCHAI, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 525
LINES
OF BUSINESS : STEELS
MANUFACTURER,
DISTRIBUTOR & EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was
established on November 12,
1964 as a
private limited company
under the name style
THE BANGKOK IRON & STEEL WORKS
CO., LTD, by
Thai groups, with
the business objective
to manufacture and
distribute various kinds
of steels to domestic
and international markets.
It currently employs
525 staff.
The subject’s
registered address is 42 Moo 4,
Suksawad Rd., Bangkru,
Phrapradaeng, Samutprakarn 10130,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Amnuay Pichitpongchai |
[x] |
Thai |
66 |
|
Ms. Thanvarat Pichitpongchai |
[x] |
Thai |
34 |
|
Mr. Nantawatchai Wongchanachai |
[-] |
Thai |
62 |
|
Mr. Paiboon Chao-opas |
|
Thai |
62 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can sign or
the director [-]
can jointly sign
with one of
the rest directors
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Amnuay Pichitpongchai is
the Managing Director.
He is Thai
nationality with the
age of 66
years old.
Ms. Thanvarat Pichitpongchai is
the Deputy Managing
Director.
She is Thai
nationality with the
age of 34
years old.
Mr. Nantawatchai Wongchanachai is
the Factory Manager.
He is Thai
nationality with the
age of 62
years old.
Mr. Paiboon Chao-opas
is the Sales
& Marketing Director.
He is Thai
nationality with the
age of 62
years old.
Mr. Ampol Tho-aramrat
is the G.M.
& Purchasing Manager.
He is Thai
nationality.
Mr. Sakda Jindara
is the Personnel
& Administration Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
various kinds of
steel products such
as steel round
bars, deformed steel
bars, round steel
bars, low/high carbon
wire rods and
etc., with various sizes
for construction and
industrial works.
PRODUCTION
500,000 tons per
annum
BRAND NAME
“BISW”
PURCHASE
80% of raw materials, mainly iron
scrap and chemical are
purchased from local suppliers, and the remaining
20% is imported from
Japan, Brazil, Argentina, Russia, Korea, Republic of
China, Israel, Taiwan
and Hong Kong.
MAJOR SUPPLIER
S. Tanapatra Engineering Co.,
Ltd. : Thailand
SALES [LOCAL]
95% of its
products is sold
locally to wholesalers
and manufacturers.
EXPORT
5% of the
products is exported
to Vietnam, Singapore, Indonesia,
Hong Kong, India, Philippines
and Malaysia.
MAJOR CUSTOMER
Majorthai Industry Co.,
Ltd. : Thailand
SUBSIDIARIES & AFFILIATED
COMPANIES
|
Name |
Country |
Business Type |
|
Thai Asia Steel
Pipe Co., Ltd. |
Thailand |
Manufacturer of steel
pipe |
|
Chue Chin Hua
LP. |
Thailand |
Manufacturer of aluminum
products |
|
Aluminium Chue Chin
Hua Co., Ltd. |
Thailand |
Manufacturer of aluminum
products |
|
First Chue Chin
Hua Corporation Ltd. |
Thailand |
Manufacturer of stainless
steel cooking wares |
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 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 on the
credit term of
90 days or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok]
Kasikornbank Public Co., Ltd.
[Head Office
: 1 Kasikorn
Lane, Rajburana Rd.,
Rajburana, Bangkok]
Krung Thai Bank Public Co.,
Ltd.
[Head Office
: 35 Sukhumvit
Rd., Klongtoeynua, Wattana,
Bnagkok]
[Yawaraj Branch
: Yaowaraj Rd.,
Samphantawong, Bangkok]
EMPLOYMENT
The subject employs
525 office staff and
factory workers.
LOCATION DETAILS
The premise is owned
for operating office and factory
at the heading
address on 96,000
square meters plot
of land. Premise
is located in
industrial area.
COMMENT
The
subject is one of
the leading steel
manufactures in the
country. Improvement of country’s
economy along with strong
consumption of industrial products, demand of
steels has significantly
increased. Market demand has gradually
improved since there are new
construction projects have been
started after floods,
as well as
industrial parts also
increased in line
from strong consumption of
industrial sector.
However,
the subject’s cost
of goods sold
and financial cost
have risen significantly
in 2012, which
resulted in a
small profit margin
and ended up
with a net
loss at the end
of year. As
a result, the
credit given should
be treated on a secured
basis only.
FINANciAL INFORMATION
The capital was
registered at Bht.
20,000,000 divided into
200,000 shares of
Bht. 100 each.
The capital was
increased / decreased later as
followings:
Bht. 800,000,000 on
September 15, 1994
Bht. 3,000,000,000
on September 19,
1996
Bht. 1,000,000,000
on September 20,
1999 [Decreased]
Bht. 3,000,000,000
on September 22,
1999 [Increased]
The latest registered
capital was increased
to Bht. 3,000,000,000 divided
into 30,000,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED
WERE : [as at
January 31, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Amnuay Pichitpongchai Nationality: Thai Address : 286
Srinakarin Rd., Nongbon,
Prawes, Bangkok |
28,979,500 |
96.60 |
|
Mr. Puriphat Pichitpongchai Nationality: Thai Address : 286
Srinakarin Rd., Nongbon,
Prawes, Bangkok |
800,500 |
2.68 |
|
Ms. Petchpailin Pichitpongchai Nationality: Thai Address : 210/248
Moo 6, Srinakarin
Rd., Prawes, Bangkok |
100,000 |
0.33 |
|
Ms. Thanvarat Pichitpongchai Nationality: Thai Address : 84
Soi Pattanakarn 61,
Srinakarin Rd.,
Prawes, Bangkok |
100,000 |
0.33 |
|
Aluminium Chue Chin
Hua Co., Ltd. Nationality: Thai Address :
6 Moo 4,
Suksawad Rd., Bangkru,
Phrapradaeng, Samutprakarn |
10,000 |
0.03 |
|
First Chue Chin Hua
Corporation Ltd. Nationality: Thai Address : 9/1
Moo 6, Suksawad
Rd., Bangkru, Phrapradaeng, Samutprakarn |
10,000 |
0.03 |
Total Shareholders : 6
Share Structure [as
at January 31,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
30,000,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
6 |
30,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Parichat Larppitakpong No.
8142
BALANCE SHEET [BAHT]
The
latest financial figures
published for September 30,
2012, 2011 &
2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash
Equivalents |
106,764,969.77 |
140,277,098.22 |
15,897,961.78 |
|
Short-term Investment |
2,140,149.30 |
2,091,360.50 |
2,073,908.56 |
|
Trade Accounts & Other Receivable |
341,958,269.53 |
519,028,141.36 |
320,696,771.28 |
|
Inventories |
3,687,764,527.27 |
2,837,777,734.34 |
1,573,223,829.49 |
|
Other Current Assets
|
176,467,336.28 |
116,889,999.57 |
190,973,706.35 |
|
Total Current Assets
|
4,315,095,252.15 |
3,616,064,333.99 |
2,102,866,177.46 |
|
Other Long-term Investment |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
Real Estate for Investment |
26,568,552.07 |
- |
- |
|
Fixed Assets |
597,594,164.42 |
564,778,371.61 |
598,313,015.69 |
|
Other Non-current Assets |
3,340,085.79 |
3,226,501.82 |
1,511,339.83 |
|
Total Assets |
4,944,598,054.43 |
4,186,069,207.42 |
2,704,690,532.98 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan
from Financial Institution |
- |
- |
617,869,673.10 |
|
Trade Accounts &
Other Payable |
3,430,592,011.64 |
2,487,223,509.23 |
359,933,898.13 |
|
Other Current Liabilities |
- |
- |
55,175,182.56 |
|
Total Current Liabilities |
3,430,592,011.64 |
2,487,223,509.23 |
1,032,978,753.79 |
|
Total Liabilities |
3,430,592,011.64 |
2,487,223,509.23 |
1,032,978,753.79 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 30,000,000 shares |
3,000,000,000.00 |
3,000,000,000.00 |
3,000,000,000.00 |
|
Capital Paid |
3,000,000,000.00 |
3,000,000,000.00 |
3,000,000,000.00 |
|
Retained Earning -
Unappropriated |
[1,485,993,957.21] |
[1,301,154,301.81] |
[1,328,288,220.81] |
|
Total Shareholders' Equity |
1,514,006,042.79 |
1,698,845,698.19 |
1,671,711,779.19 |
|
Total Liabilities &
Shareholders' Equity |
4,944,598,054.43 |
4,186,069,207.42 |
2,704,690,532.98 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
7,010,197,480.31 |
6,444,649,088.39 |
5,610,825,423.19 |
|
Other Income |
|
|
|
|
Interest Income |
666,411.32 |
539,583.20 |
409,232.61 |
|
Renting Building |
- |
- |
25,479,790.00 |
|
Renting Income |
1,996,000.00 |
2,052,000.00 |
3,895,000.00 |
|
Compensation |
317,471.59 |
380,762.21 |
1,550,874.73 |
|
Other Compensation |
- |
1,903,838.38 |
- |
|
Electrical - Water |
25,547.20 |
80,494.85 |
9,537,294.80 |
|
Gain on Disposal
of Assets |
2,990.00 |
1,136,255.04 |
121,955,546.08 |
|
Gain on Exchange Rate |
32,809,176.51 |
867,623.00 |
3,613,785.66 |
|
Miscellaneous |
4,149,747.87 |
12,590,990.16 |
239,300.39 |
|
Total Revenues |
7,050,164,833.80 |
6,464,200,635.23 |
5,777,506,247.46 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
6,995,464,135.82 |
6,236,278,110.13 |
5,306,369,376.73 |
|
Cost of Electrical |
- |
- |
11,084,493.38 |
|
Selling Expenses |
31,138,999.41 |
21,817,877.50 |
23,929,500.72 |
|
Administrative Expenses |
152,336,779.90 |
131,655,105.99 |
191,249,455.46 |
|
Other Expenses- Loss on Exchange Rate |
2,452,770.27 |
10,750,338.31 |
2,343,678.76 |
|
Total Expenses |
7,181,392,685.40 |
6,400,501,431.93 |
5,534,976,505.05 |
|
Profit / [Loss] Before Financial Cost |
[131,227,851.60] |
63,699,203.30 |
242,529,742.41 |
|
Financial Cost |
[53,611,803.80] |
[36,565,284.30] |
[22,641,797.14] |
|
Net Profit / [Loss] |
[184,839,655.40] |
27,133,919.00 |
219,887,945.27 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.26 |
1.45 |
2.04 |
|
QUICK RATIO |
TIMES |
0.13 |
0.27 |
0.33 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
11.73 |
11.41 |
9.38 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.42 |
1.54 |
2.07 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
192.42 |
166.09 |
107.99 |
|
INVENTORY TURNOVER |
TIMES |
1.90 |
2.20 |
3.38 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
17.80 |
29.40 |
20.86 |
|
RECEIVABLES TURNOVER |
TIMES |
20.50 |
12.42 |
17.50 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
179.00 |
145.57 |
24.71 |
|
CASH CONVERSION CYCLE |
DAYS |
31.22 |
49.91 |
104.14 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
99.79 |
96.77 |
94.77 |
|
SELLING & ADMINISTRATION |
% |
2.62 |
2.38 |
3.84 |
|
INTEREST |
% |
0.76 |
0.57 |
0.40 |
|
GROSS PROFIT MARGIN |
% |
0.78 |
3.54 |
8.20 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(1.87) |
0.99 |
4.32 |
|
NET PROFIT MARGIN |
% |
(2.64) |
0.42 |
3.92 |
|
RETURN ON EQUITY |
% |
(12.21) |
1.60 |
13.15 |
|
RETURN ON ASSET |
% |
(3.74) |
0.65 |
8.13 |
|
EARNING PER SHARE |
BAHT |
(6.16) |
0.90 |
7.33 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.69 |
0.59 |
0.38 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.27 |
1.46 |
0.62 |
|
TIME INTEREST EARNED |
TIMES |
(2.45) |
1.74 |
10.71 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
8.78 |
14.86 |
|
|
OPERATING PROFIT |
% |
(306.01) |
(73.74) |
|
|
NET PROFIT |
% |
(781.21) |
(87.66) |
|
|
FIXED ASSETS |
% |
5.81 |
(5.60) |
|
|
TOTAL ASSETS |
% |
18.12 |
54.77 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 8.78%.
Turnover has increased from THB 6,444,649,088.39 in 2011 to THB
7,010,197,480.31 in 2012. While net profit has decreased from THB 27,133,919.00
in 2011 to THB -184,839,655.40 in 2012. And total assets has increased from THB
4,186,069,207.42 in 2011 to THB 4,944,598,054.43 in 2012.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
0.78 |
Deteriorated |
Industrial
Average |
6.26 |
|
Net Profit Margin |
(2.64) |
Deteriorated |
Industrial
Average |
0.88 |
|
Return on Assets |
(3.74) |
Deteriorated |
Industrial
Average |
0.72 |
|
Return on Equity |
(12.21) |
Deteriorated |
Industrial
Average |
0.53 |
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 0.78%. 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 -2.64%.
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 -3.74%.
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 -12.21%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.26 |
Impressive |
Industrial
Average |
1.01 |
|
Quick Ratio |
0.13 |
|
|
|
|
Cash Conversion Cycle |
31.22 |
|
|
|
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 1.26 times in 2012, decrease from 1.45 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 0.13 times in 2012,
decrease from 0.27 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 32 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.69 |
Acceptable |
Industrial
Average |
0.61 |
|
Debt to Equity Ratio |
2.27 |
Risky |
Industrial
Average |
1.54 |
|
Times Interest Earned |
(2.45) |
Risky |
Industrial Average |
1.28 |
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 -2.45 lower than 1, so the company is not generating
enough cash from EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.69 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 Downtrend
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
11.73 |
Impressive |
Industrial
Average |
2.74 |
|
Total Assets Turnover |
1.42 |
Impressive |
Industrial
Average |
1.18 |
|
Inventory Conversion Period |
192.42 |
|
|
|
|
Inventory Turnover |
1.90 |
Acceptable |
Industrial
Average |
3.72 |
|
Receivables Conversion Period |
17.80 |
|
|
|
|
Receivables Turnover |
20.50 |
Impressive |
Industrial
Average |
5.80 |
|
Payables Conversion Period |
179.00 |
|
|
|
The company's Account Receivable Ratio is calculated as 20.50 and 12.42
in 2012 and 2011 respectively. This ratio measures the efficiency of the
company in managing its trade debtors to generate revenue. A lower ratio may
indicate over extension and collection problems. Conversely, a higher ratio may
indicate an overtly stringent policy. In this case, the company's A/R ratio in
2012 increased from 2011. This would suggest the company had good performance
in the management of its debt collections.
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 166 days at the
end of 2011 to 192 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 2.2 times in year 2011 to 1.9 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.42 times and 1.54
times in 2012 and 2011 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 Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.33 |
|
UK Pound |
1 |
Rs.82.72 |
|
Euro |
1 |
Rs.69.82 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.