MIRA
INFORM REPORT
|
Report Date : |
13.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
KANOK FURNITURE & DECORATION CO., LTD. |
|
|
|
|
Registered Office : |
4 Soi Onnuch 46 Onnuch Road, Nongbon, Pravet, Bangkok 10250 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
26.10.1998 |
|
|
|
|
Com. Reg. No.: |
0105541066891 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor & Exporter of Wooden Furniture |
|
|
|
|
No. of Employees : |
170 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
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 achieved steady growth due largely to industrial and agriculture
exports - mostly electronics, agricultural commodities, automobiles and parts,
and processed foods. Thailand is trying to maintain growth by encouraging
domestic consumption and public investment to offset weak exports in 2012.
Unemployment, at less than 1% of the labor force, stands as one of the lowest
levels in the world, which puts upward pressure on wages in some industries.
Thailand also attracts nearly 2.5 million migrant workers from neighboring
countries. The Thai government is implementing a nation-wide 300 baht ($10) per
day minimum wage policy and deploying new tax reforms designed to lower rates
on middle-income earners. The Thai economy has weathered internal and external
economic shocks in recent years. The global economic severely cut Thailand's
exports, with most sectors experiencing double-digit drops. In 2009, the
economy contracted 2.3%. However, in 2010, Thailand's economy expanded 7.8%,
its fastest pace since 1995, as exports rebounded. In late 2011 growth was
interrupted by historic flooding in the industrial areas in Bangkok and its
five surrounding provinces, crippling the manufacturing sector. Industry
recovered from the second quarter of 2012 onward with GDP growth at 5.5% in
2012. The government has approved flood mitigation projects worth $11.7
billion, which were started in 2012, to prevent similar economic damage, and an
additional $75 billion for infrastructure over the next seven years with a plan
to start in 2013.
|
Source
: CIA |
Company name
KANOK
FURNITURE & DECORATION CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 4 SOI ONNUCH
46 ONNUCH ROAD,
NONGBON,
PRAVET, BANGKOK
10250, THAILAND
TELEPHONE : [66] 2721-5997,
2321-0702
FAX : [66]
2321-4493
E-MAIL
ADDRESS : info@kanok.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1998
REGISTRATION
NO. : 0105541066891 [Former
: [4] 1105/2541]
TAX
ID NO. : 3011986486
CAPITAL REGISTERED : BHT. 30,000,000
CAPITAL PAID-UP : BHT.
30,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL
YEAR CLOSING DATE : DECEMBER
31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PAIRACH LERTKANGWALKRAI, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 170
LINES
OF BUSINESS : WOODEN
FURNITURE
MANUFACTURER, DISTRIBUTOR
& 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 October
26, 1998 as
a private limited
company under the
name style KANOK
FURNITURE & DECORATION
CO., LTD. by
Thai group, Lertkangwalkrai family,
in order to
manufacture of wooden
furniture for both
domestic and export
markets. It currently
employs approximate 170
staff.
The subject’s registered
address is 4
Soi Onnuch 46,
Onnuch Rd., Nongbon, Pravet, Bangkok
10250, and this
is the company’s
current operation address. [The
subject’s address number was
changed from 510/3
to number 4
by the district
government but they
are the same
location.]
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Pairach Lertkangwalkrai |
[x] |
Thai |
71 |
|
Mrs. Suchada Lertkangwalkrai |
|
Thai |
66 |
|
Mr. Siraphat Lertkangwalkrai |
|
Thai |
39 |
|
Mrs. Supaluck Lertkangwalkrai |
|
Thai |
38 |
|
Ms. Siriluck Lertkangwalkrai |
|
Thai |
33 |
AUTHORIZED PERSON
Only the mentioned
director [x] can
sign or any
two of the
rest directors can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Pairach Lertkangwalkrai is
the Managing Director.
He is Thai
nationality with the
age of 71
years old.
Mr. Vuthikorn Panutas
is the Marketing
Manager.
He is Thai
nationality.
Mr. Somphot Bhodisombat
is the Production
Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
wide range of wooden
furniture, e.g. bedroom
suites, kitchen furniture,
office furniture, dining tables,
chair, coffer table
and etc. The products
are made from
parawood, plywood, oak wood
and etc., under
customer’s orders and
brands.
Subject is also
a design specialist
for interior fitting-out
for luxury hotels,
private residences an
corporate offices, both
local and abroad.
PURCHASE
Raw materials such
as parawood, plywood,
oakwood and accessories
are purchased from
around 10 suppliers
both domestic and
overseas, such as
Singapore, Japan, India
and Malaysia.
SALES
95% of the
products is exported
to France, United
Kingdom, Italy, Japan,
Korea, Republic of China,
Taiwan, Singapore, Myanmar,
India, Malaysia, Hong
Kong, Middle East
countries and etc., and
the remaining 5%
is sold locally
to hotels, office
building and residence.
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
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 T/T.
Exports are against
T/T.
BUSINESS TRANSACTION
The products are
sold to customers
by cash and
credit, with the
maximum credit given at
30-60 days, while
exports are against
L/C at sight
or T/T on
negotiated term. The
subject is not
found to have
problem on its
accounts receivable.
BANKING
TMB Bank Public
Co., Ltd.
[Head Office
: 3000 Phaholyothin
Rd., Ladyao, Jatujak,
Bangkok 10900]
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Rd., Bangrak, Bangkok
10500]
EMPLOYMENT
The subject employs
approximately 170 office
staff and factory
workers.
LOCATION DETAILS
The premise is
rented for administrative office
on 40,000 square meters of land, at
the heading address.
Premise is located
in commercial/residential area.
Factory is located at
43/33 T. Kaomaikaew, A. Banglamung, Chonburi
20150.
Tel. 38 309-250,
Fax. 309-252.
COMMENT
The subject’s sales performance in overseas markets remains
strong as well as skill improvement
as experience matured were
contributed the subject
to become amongst the
best in Thailand reaching
international standards.
Its business has
positive outlook which sales
are steadily grown.
FINANCIAL INFORMATION
The capital was
registered at Bht.
30,000,000 divided into
300,000 shares of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 27, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Pairach Lertkangwalkrai Nationality: Thai Address : 4
Onnuch 46 Rd.,
Nongbon, Pravet, Bangkok 10250 |
120,000 |
40.00 |
|
Mr. Siraphat Lertkangwalkrai Nationality: Thai Address : 19/86
Moo 1, Nongbon,
Pravet,
Bangkok 10250 |
60,000 |
20.00 |
|
Mrs. Suchada Lertkangwalkrai Nationality: Thai Address : 510/20
Onnuch 46 Rd.,
Nongbon, Pravet,
Bangkok 10250 |
30,000 |
10.00 |
|
Mrs. Supaluck Lertkangwalkrai Nationality: Thai Address : 4
Onnuch 46 Rd.,
Nongbon, Pravet,
Bangkok 10250 |
30,000 |
10.00 |
|
Ms. Siriluck Lertkangwalkrai Nationality: Thai Address : 4
Onnuch 46 Rd.,
Nongbon, Pravet,
Bangkok 10250 |
30,000 |
10.00 |
|
Mr. Peera Lertkangwalkrai Nationality: Thai Address : 1173
Onnuch Rd., Suanluang,
Pravet,
Bangkok 10250 |
15,000 |
5.00 |
|
Ms. Nongluck Veerapipat Nationality: Thai Address : 1179/33
Charoenkrung Rd., Siphya,
Bangrak, Bangkok |
15,000 |
5.00 |
Total Shareholders : 7
Share Structure [as
at April 27,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
300,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
300,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Hataya Tanmanatham
No. 5809
Note:
The 2012 financial
statement was not
available during investigation.
BALANCE SHEET
[BAHT]
The
latest financial figures
published for December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current
Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash and Cash
Equivalent |
26,161,936.78 |
29,731,655.95 |
120,564,847.64 |
|
Trade Accounts & Other
Receivable |
220,513,629.65 |
166,697,789.02 |
71,414,921.43 |
|
Short-term Lending |
6,710,837.16 |
4,429,543.55 |
|
|
Inventories |
244,332,426.88 |
207,392,258.24 |
224,682,888.47 |
|
Other Current
Assets |
10,407,867.43 |
1,192,561.48 |
22,687,468.02 |
|
|
|
|
|
|
Total Current
Assets |
508,126,697.90 |
409,443,808.24 |
439,350,125.56 |
|
Other Long-term
Investment |
2,000,000.00 |
2,000,000.00 |
5,000,000.00 |
|
Investment in
Real Estate |
- |
381,357,785.64 |
- |
|
Fixed Assets |
566,833,541.62 |
152,038,010.63 |
166,955,421.09 |
|
Intangible Assets |
11,214,953.29 |
12,616,822.44 |
- |
|
Total Assets |
1,088,175,192.81 |
957,456,426.95 |
611,305,546.65 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Bank Overdraft
& Short-term Loan from
Financial Institution |
30,088,552.05 |
943,075.49 |
- |
|
Trade Accounts
& Other Payable |
242,531,492.95 |
177,468,708.49 |
25,212,776.11 |
|
Current Portion of
Long-term Loan |
43,980,000.00 |
43,080,000.00 |
17,581,507.28 |
|
Short-term Loan |
10,000,000.00 |
- |
- |
|
Other Current
Liabilities |
2,151,198.86 |
2,797,739.08 |
162,737,474.42 |
|
|
|
|
|
|
Total Current
Liabilities |
328,751,243.86 |
224,289,523.06 |
205,531,757.81 |
|
Loan-term Loan |
341,277,189.21 |
329,474,162.33 |
32,342,671.77 |
|
Total Liabilities |
670,028,433.07 |
553,763,685.39 |
237,874,429.58 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share
capital : Baht 100 par
value authorized,
issued and fully
paid
share capital 300,000
shares |
30,000,000.00 |
30,000,000.00 |
30,000,000.00 |
|
|
|
|
|
|
Capital Paid |
30,000,000.00 |
30,000,000.00 |
30,000,000.00 |
|
Retained Earning Appropriated for Statutory Reserve |
6,000,000.00 |
6,000,000.00 |
6,000,000.00 |
|
Unappropriated |
382,146,759.74 |
367,692,741.56 |
337,431,117.07 |
|
Total Shareholders'
Equity |
418,146,759.74 |
403,692,741.56 |
373,431,117.07 |
|
Total Liabilities
& Shareholders' Equity |
1,088,175,192.81 |
957,456,426.95 |
611,305,546.65 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Services Income |
644,109,860.40 |
625,044,602.82 |
792,569,443.52 |
|
Sales Income |
1,266,472.82 |
177,196.26 |
41,486,598.47 |
|
Other Income |
2,626,318.96 |
9,743,000.92 |
4,454,693.45 |
|
Total Revenues |
648,002,652.18 |
634,964,800.00 |
838,510,735.44 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Change in Finished
Goods & Work in
Process |
[38,708,332.13] |
38,364,765.69 |
36,581,437.18 |
|
Raw Material & Material
Supplies |
322,187,384.50 |
253,283,513.18 |
336,529,178.48 |
|
Installation Expenses &
Wages |
81,980,112.77 |
53,566,894.65 |
113,419,814.77 |
|
Employee Expenses |
167,035,033.45 |
147,427,024.44 |
169,221,460.50 |
|
Depreciation &
Amortization |
26,869,299.63 |
27,791,474.85 |
28,699,045.50 |
|
Vehicle Expenses |
15,834,964.12 |
18,672,320.13 |
21,747,428.24 |
|
Selling & Export
Expenses |
10,429,385.51 |
5,856,625.49 |
13,007,322.34 |
|
Water, Electricity & Communication Expenses |
8,305,914.24 |
8,221,460.56 |
8,350,206.53 |
|
Advertising & Sales
Promotion Expenses |
2,552,938.06 |
4,313,959.41 |
4,692,029.82 |
|
Bank Fees |
2,328,739.04 |
2,633,955.46 |
4,112,734.88 |
|
Assets Rental |
5,714,967.05 |
3,438,788.87 |
3,815,051.52 |
|
Repair & Maintenance
Expenses |
2,215,008.47 |
2,963,917.97 |
3,666,812.98 |
|
Insurance Premium |
2,182,730.80 |
1,515,795.59 |
2,709,575.57 |
|
Stationery Expenses |
1,747,396.78 |
1,902,393.49 |
2,568,774.43 |
|
Vocational Expenses
& Government Fee |
2,737,300.33 |
638,387.35 |
- |
|
Other Expenses |
5,719,604.26 |
18,554,488.62 |
4,866,584.17 |
|
Total Expenses |
619,132,446.88 |
589,145,765.75 |
753,987,456.91 |
|
|
|
|
|
|
Profit / [Loss] before
Financial Cost & Income Tax |
28,870,205.30 |
45,819,034.25 |
84,523,278.53 |
|
Financial Cost |
[7,973,870.56] |
[892,373.40] |
[2,516,161.54] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax |
20,896,334.74 |
44,926,660.85 |
82,007,116.99 |
|
Income Tax |
[6,442,316.56] |
[14,665,036.36] |
[24,651,069.76] |
|
Net Profit / [Loss] |
14,454,018.18 |
30,261,624.49 |
57,356,047.23 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.55 |
1.83 |
2.14 |
|
QUICK RATIO |
TIMES |
0.77 |
0.90 |
0.93 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.14 |
4.11 |
5.00 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.59 |
0.65 |
1.36 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
276.80 |
298.87 |
243.69 |
|
INVENTORY TURNOVER |
TIMES |
1.32 |
1.22 |
1.50 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
124.71 |
97.32 |
31.25 |
|
RECEIVABLES TURNOVER |
TIMES |
2.93 |
3.75 |
11.68 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
274.76 |
255.75 |
27.35 |
|
CASH CONVERSION CYCLE |
DAYS |
126.75 |
140.44 |
247.60 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
49.92 |
40.51 |
40.35 |
|
SELLING & ADMINISTRATION |
% |
52.01 |
47.58 |
45.67 |
|
INTEREST |
% |
1.24 |
0.14 |
0.30 |
|
GROSS PROFIT MARGIN |
% |
50.48 |
61.05 |
60.19 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.47 |
7.33 |
10.13 |
|
NET PROFIT MARGIN |
% |
2.24 |
4.84 |
6.88 |
|
RETURN ON EQUITY |
% |
3.46 |
7.50 |
15.36 |
|
RETURN ON ASSET |
% |
1.33 |
3.16 |
9.38 |
|
EARNING PER SHARE |
BAHT |
48.18 |
100.87 |
191.19 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.62 |
0.58 |
0.39 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.60 |
1.37 |
0.64 |
|
TIME INTEREST EARNED |
TIMES |
3.62 |
51.35 |
33.59 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
3.22 |
(25.04) |
|
|
OPERATING PROFIT |
% |
(36.99) |
(45.79) |
|
|
NET PROFIT |
% |
(52.24) |
(47.24) |
|
|
FIXED ASSETS |
% |
272.82 |
(8.93) |
|
|
TOTAL ASSETS |
% |
13.65 |
56.62 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 3.22%. Turnover has increased from THB
625,221,799.08 in 2010 to THB 645,376,333.22 in 2011. While net profit has
decreased from THB 30,261,624.49 in 2010 to THB 14,454,018.18 in 2011. And
total assets has increased from THB 957,456,426.95 in 2010 to THB
1,088,175,192.81 in 2011.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
50.48 |
Impressive |
Industrial
Average |
30.38 |
|
Net Profit Margin |
2.24 |
Acceptable |
Industrial
Average |
4.05 |
|
Return on Assets |
1.33 |
Deteriorated |
Industrial Average |
4.37 |
|
Return on Equity |
3.46 |
Deteriorated |
Industrial
Average |
8.63 |
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. Gross Profit Margin is 50.48%. When
compared with the industry average, the ratio of the company was higher,
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 2.24%.
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 1.33%.
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 3.46%.
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 |
1.55 |
Satisfactory |
Industrial
Average |
1.82 |
|
Quick Ratio |
0.77 |
|
|
|
|
Cash Conversion Cycle |
126.75 |
|
|
|
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 1.55 times in 2011, decrease from 1.83 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 0.77 times in 2011,
decrease from 0.9 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 127 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.62 |
Acceptable |
Industrial
Average |
0.46 |
|
Debt to Equity Ratio |
1.60 |
Risky |
Industrial Average |
0.91 |
|
Times Interest Earned |
3.62 |
Impressive |
Industrial
Average |
3.61 |
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 3.63 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 0.62 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 Uptrend
ACTIVITY :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
1.14 |
Acceptable |
Industrial
Average |
2.22 |
|
Total Assets Turnover |
0.59 |
Acceptable |
Industrial
Average |
1.06 |
|
Inventory Conversion Period |
276.80 |
|
|
|
|
Inventory Turnover |
1.32 |
Deteriorated |
Industrial
Average |
5.44 |
|
Receivables Conversion Period |
124.71 |
|
|
|
|
Receivables Turnover |
2.93 |
Satisfactory |
Industrial
Average |
3.45 |
|
Payables Conversion Period |
274.76 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.93 and 3.75 in
2011 and 2010 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 2011
decreased from 2010. This would suggest the company had deteriorated 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 decreased from 299 days at the
end of 2010 to 277 days at the end of 2011. This represents a positive trend.
And Inventory turnover has increased from 1.22 times in year 2010 to 1.32 times
in year 2011.
The company's Total Asset Turnover is calculated as 0.59 times and 0.65
times in 2011 and 2010 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.54.44 |
|
|
1 |
Rs.83.77 |
|
Euro |
1 |
Rs.71.33 |
INFORMATION DETAILS
|
Report Prepared
by : |
PRL |
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.