MIRA
INFORM REPORT
|
Report Date : |
22.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
AMERICAN
STANDARD B & K
[THAILAND] PUBLIC COMPANY
LIMITED |
|
|
|
|
Registered Office : |
1/6 Moo 1, Phaholyothin Road, K.M. 32, T. Klongnueng, A. Klongluang, Pathumthani 12120 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
21.07.1969 |
|
|
|
|
Com. Reg. No.: |
0107536001443 [Former : BOR.MOR.JOR. 218] |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, distributor and
exporter of sanitaryware |
|
|
|
|
No. of Employees : |
900 |
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 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
AMERICAN STANDARD B & K [THAILAND] PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 1/6
MOO 1, PHAHOLYOTHIN
ROAD, K.M. 32,
T.
KLONGNUENG,
A. KLONGLUANG,
PATHUMTHANI
12120, THAILAND
TELEPHONE : [66]
2901-4455
FAX :
[66] 2901-4422
E-MAIL
ADDRESS : info@americanstandard.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1969
REGISTRATION
NO. : 0107536001443 [Former : BOR.MOR.JOR. 218]
TAX
ID NO. : 3101004533
CAPITAL
REGISTERED : BHT.
105,000,000
CAPITAL
PAID-UP : BHT.
105,000,000
SHAREHOLDER’S PROPORTION : THAI :
0.87%
FOREIGN :
99.13%
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
CRAIG ANDREW MCEACHERN,
AUSTRALIAN
MANAGING DIRECTOR
NO.
OF STAFF : 900
LINES
OF BUSINESS : SANITARYWARE
MANUFACTURER, DISTRIBUTOR AND
EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
FOR NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was established
on July 21, 1969 as
a private limited company
under the originally registered name “American
Standard Sanitaryware [Thailand] Company Limited”. by
a joint-venture between
leading Thai businessmen
and the American
Standard Inc. of
the United States.
The main objective
of the company’s
founders was set
up a manufacturing
plant for the
production of high quality vitreous
China sanitaryware products
to support the
local market demand,
in order to
reduce the need
for imported products.
The subject was
granted various tax
privileges under the
Investment Promotion Act
B.E. 2520 by
the Board of
Investment. On January
22, 1988, it
was listed on the
Stock Exchange of
Thailand.
On November 30,
1993, the subject
registered for a
conversion of its
status to become
a public limited company under the name style “American Standard
Sanitaryware [Thailand] Public
Company Limited”, and
was changed to be
AMERICAN STANDARD B & K
[THAILAND] PUBLIC COMPANY
LIMITED on December
1, 2006.
On February 1, 2005, subject
has revoked its
name from the
Stock Exchange of Thailand.
It currently employs
approximate 900 staff.
The subject currently
is a subsidiary
of Ceramic Sanitaryware
Pte Ltd., of
Singapore, with held
around 99% of
the subject’s shares.
They are also
member of Lixil
Corporation of Japan.
It achieved the
standard ISO 9001 : 2000 certification
by BVQI.
The subject’s registered
address is 1/6
Moo 1, Phaholyothin
Rd., K.M. 32,
T. Klongnueng, A.
Klongluang, Pathumthani 12120,
and this is
the company’s current
operating address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality
|
Age
|
|
|
|
|
|
|
Mrs. Chanchay Cholaworn |
|
Thai |
55 |
|
Mr. Kenneth L. Ng |
|
American |
51 |
|
Mr. Craig Andrew McEachern |
|
Australian |
48 |
|
Ms. Nattaporn Sakchaichanchol |
|
Thai |
45 |
|
Mr. Zhimao Ye |
|
Chinese |
46 |
AUTHORIZED PERSON
Two of the
mentioned directors can jointly
sign on behalf of the
subject with the
company’s affixed.
MANAGEMENT
Mr. Craig Andrew
McEachern is the
Managing Director.
He is
Australian nationality with
the age of
48 years old.
Mr. Thienchai Antracha
is the Production
Manager.
He is
Thai nationality.
Mr. Sitthirat Katcharaporn is
the Sales & Marketing Director.
He is
Thai nationality.
Ms. Pornkanok Lekyim
is the Human
Resources Director.
She is
Thai nationality.
Ms. Vairung Meenakoon
is the Purchase
and Logistics Manager.
She is
Thai nationality.
BUSINESS OPERATIONS
The subject’s activities
are manufacturer and
distributor of sanitaryware including traditional
toilets, basic toilets,
wash basin, bathtub,
shower, faucet, mirrors,
kitchen sink, kitchen
furniture, and upscale
luxury one – piece toilets
under the name
“AMERICAN STANDARD” At
present, the subject
has more than
100 models of
sanitaryware products on
the market.
IMPORT [COUNTRIES]
Raw material
is purchased from
both overseas and
local suppliers. The
countries in which
the subject imports
the raw materials
from are the
United States of
America, Germany, Italy,
Republic of China,
India, Japan, Korea
and Singapore.
SALES [LOCAL]
80% of the
products is sold
to local dealers,
wholesalers and sub-contractors, the
remaining 20% is
exported to the overseas
customers in the
United States of
America, Canada, Hong
Kong, United Kingdom,
Korea, Singapore, Indonesia,
Vietnam, India, Japan
and Philippines.
SUBSIDIARIES & AFFILIATED
COMPANY
Ideal Standard
[Thailand] Co., Ltd.
Nationality : Thai
Business Type : Manufacturer and distributor of products for bathrooms and kitchens
Investment : The
subject holds 20%
of the company’s
shares.
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 IRICO’S
DATABASE 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
L/C at sight
or T/T.
BUSINESS TRANSACTION
In term of
sales, the products are
sold by wholesales
through local dealers
nationwide with the maximum
credit given at
60 days, whereas
the exports are
by L/C at
sight and T/T.
The subject has no serious
problem on its
account receivable. However,
the common problems
are that both
local and overseas
customers often negotiate for
the extension of
payment period and
the subject tries
to give the
customers’ flexibility in their
payment as possible
as it could
to keep them
satisfied.
For the purchasing,
the raw materials
are purchased from
local suppliers with
the maximum credit
receive at 60
days, and also
are imported from
overseas suppliers by
L/C at sight
and T/T. The
subject is not
found to have
problem on its
account payable to
its suppliers.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Rd., Bangrak, Bangkok
10500]
Kasikornbank Public Co.,
Ltd.
[Head Office
: 1 Kasikorn
Lane, Rajburana Rd.,
Rajburana, Bangkok 10140]
The Siam Commercial
Bank Public Co.,
Ltd.
[Head Office
: 9 Ratchadapisek
Rd., Ladyao, Jatujak,
Bangkok 10900]
EMPLOYMENT
The subject employs
approximately 900 staff
comprising office, sales
staff and workers.
LOCATION DETAILS
The premise
is owned for
administrative office and
factory I at
the heading address.
The premise is
located on the
outskirts of Bangkok.
Factory II
is located at 199 Moo
8, T. Mabkha,
A. Nikompattana, Rayong
21180.
The subject has
two branches/showrooms as
follows:
Bathaus
and Customer Care:
- 1st Floor, Building
D, Crystal Design
Center [CDC], Praditmanutham Rd.,
Klongchan,
Bangkapi, Bangkok
10240.
Branches
and showrooms :
- 162/6-7 Chiangmai-Lampang Rd., A.
Muang, Chiangmai
- 108/79 Chalermphrakiat Rd.,
A. Muang, Phuket
- 240/18-19 Moo
6, Sukhumvit Rd.,
T. Naklua, A.
Banglamung, Chonburi.
COMMENT
As world’s leading
producer of bathroom
products, American Standard B
& K [Thailand] Public Company
Limited expresses the
brand proposition, representing
three main concepts: Style,
Comfort and Green
through innovative, functional
and environmental friendly
designs for ultimate
comfort. American Standard is
a brand of trust and is widely
accepted for its design excellence
among world-class hotels,
premium service apartments, high-end residential,
commercial and institutional
buildings.
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. 75,000,000
on March
8, 1991
Bht. 105,000,000
on February
27, 2012
The latest capital
was increased to
Bht. 105,000,000 divided
into 10,500,000 shares
of Bht. 10
each with fully
paid.
MAIN SHAREHOLDERS : [as at
April 30, 2012]
at Bht. 105,000,000 of
capitalization.
|
NAME |
HOLDING |
% |
|
Ceramic Sanitaryware Pte.
Ltd. Nationality: Singaporean Address : 18
Cross Street # 07-06/07 Marsh &
Mclennan Centre, Singapore |
10,398,378 |
99.03 |
|
Other Shareholders |
101,622 |
0.97 |
Total Shareholders : 126
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
121 |
91,071 |
0.87 |
|
Foreign |
5 |
10,408,929 |
99.13 |
|
Total |
126 |
10,500,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Vichien Kingmontri No.
3977
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash and Cash Equivalents |
341,528,408 |
441,384,013 |
286,564,092 |
|
Trade Accounts &
Other Receivable |
511,500,236 |
597,836,394 |
424,543,826 |
|
Related Company Receivable |
- |
- |
24,596,965 |
|
Inventories |
384,232,801 |
275,411,090 |
208,163,394 |
|
Other Current Assets
|
29,273,001 |
7,704,542 |
82,566,828 |
|
|
|
|
|
|
Total Current Assets
|
1,266,534,446 |
1,322,336,039 |
1,026,435,105 |
|
Investment in Associated Company |
34,400,500 |
34,400,500 |
34,400,500 |
|
Intangible Assets |
2,228,428 |
4,204,290 |
6,047,501 |
|
Fixed Assets |
632,512,385 |
688,705,468 |
647,234,769 |
|
Other Assets |
1,699,157 |
1,682,683 |
2,110,227 |
|
Total Assets |
1,937,374,916 |
2,051,328,980 |
1,716,228,102 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
706,858,436 |
595,387,064 |
315,741,671 |
|
Related Company - Payable |
- |
- |
2,396,659 |
|
Accrued Expenses |
310,785,617 |
182,178,822 |
281,153,050 |
|
Accrued Income Tax |
- |
15,587,800 |
- |
|
|
|
|
|
|
Total Current Liabilities |
1,017,644,053 |
793,153,686 |
599,291,380 |
|
Long-term Loan from Related
Company |
698,992,448 |
628,785,290 |
615,666,050 |
|
Long-term Employee Benefits Obligation |
85,073,088 |
- |
- |
|
Employee Benefits Obligation |
88,580,228 |
- |
- |
|
Total Liabilities |
1,890,289,817 |
1,421,938,976 |
1,214,957,430 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share capital
10,500,000 shares |
105,000,000 |
105,000,000 |
105,000,000 |
|
|
|
|
|
|
Capital Paid |
105,000,000 |
105,000,000 |
105,000,000 |
|
Retained Earnings: Appropriated for Statutory Reserve |
7,500,000 |
7,500,000 |
7,500,000 |
|
Other Reserve |
18,700,000 |
18,700,000 |
18,700,000 |
|
Unappropriated |
[84,114,901] |
498,190,004 |
370,070,672 |
|
Total Shareholders' Equity |
47,085,099 |
629,390,004 |
501,270,672 |
|
Total Liabilities & Shareholders' Equity |
1,937,374,916 |
2,051,328,980 |
1,716,228,102 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales Income |
2,270,980,132 |
2,644,626,874 |
2,011,924,212 |
|
Other Income |
1,557,752 |
12,134,904 |
16,030,374 |
|
Total Revenues |
2,272,537,884 |
2,656,761,778 |
2,027,954,586 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,593,564,629 |
1,852,289,348 |
1,433,991,671 |
|
Selling Expenses |
356,879,543 |
310,363,090 |
325,134,968 |
|
Administrative Expenses |
759,769,999 |
343,848,366 |
322,855,031 |
|
Total Expenses |
2,710,214,171 |
2,506,500,804 |
2,081,981,670 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
[437,676,287] |
150,260,974 |
[54,027,084] |
|
Financial Costs-Interest
Expenses |
[7,070,657] |
[7,609,348] |
[18,735,403] |
|
Profit / [Loss] before Income
Tax |
[444,746,944] |
142,651,626 |
[72,762,487] |
|
Income Tax |
1,485,993 |
[14,532,294] |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
[443,260,951] |
128,119,332 |
[72,762,487] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.24 |
1.67 |
1.71 |
|
QUICK RATIO |
TIMES |
0.84 |
1.31 |
1.23 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.59 |
3.84 |
3.11 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.17 |
1.29 |
1.17 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
88.01 |
54.27 |
52.98 |
|
INVENTORY TURNOVER |
TIMES |
4.15 |
6.73 |
6.89 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
82.21 |
82.51 |
77.02 |
|
RECEIVABLES TURNOVER |
TIMES |
4.44 |
4.42 |
4.74 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
161.90 |
117.32 |
80.37 |
|
CASH CONVERSION CYCLE |
DAYS |
8.31 |
19.46 |
49.64 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
70.17 |
70.04 |
71.27 |
|
SELLING & ADMINISTRATION |
% |
49.17 |
24.74 |
32.21 |
|
INTEREST |
% |
0.31 |
0.29 |
0.93 |
|
GROSS PROFIT MARGIN |
% |
29.90 |
30.42 |
29.52 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(19.27) |
5.68 |
(2.69) |
|
NET PROFIT MARGIN |
% |
(19.52) |
4.84 |
(3.62) |
|
RETURN ON EQUITY |
% |
(941.40) |
20.36 |
(14.52) |
|
RETURN ON ASSET |
% |
(22.88) |
6.25 |
(4.24) |
|
EARNING PER SHARE |
BAHT |
(42.22) |
12.20 |
(6.93) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.98 |
0.69 |
0.71 |
|
DEBT TO EQUITY RATIO |
TIMES |
40.15 |
2.26 |
2.42 |
|
TIME INTEREST EARNED |
TIMES |
(61.90) |
19.75 |
(2.88) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(14.13) |
31.45 |
|
|
OPERATING PROFIT |
% |
(391.28) |
(378.12) |
|
|
NET PROFIT |
% |
(445.98) |
276.08 |
|
|
FIXED ASSETS |
% |
(8.16) |
6.41 |
|
|
TOTAL ASSETS |
% |
(5.56) |
19.53 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -14.13%. Turnover has decreased from THB
2,644,626,874.00 in 2010 to THB 2,270,980,132.00 in 2011. While net profit has
decreased from THB 128,119,332.00 in 2010 to THB -443,260,951.00 in 2011. And
total assets has decreased from THB 2,051,328,980.00 in 2010 to THB
1,937,374,916.00 in 2011.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
29.90 |
Impressive |
Industrial
Average |
28.99 |
|
Net Profit Margin |
(19.52) |
Deteriorated |
Industrial
Average |
2.32 |
|
Return on Assets |
(22.88) |
Deteriorated |
Industrial
Average |
3.13 |
|
Return on Equity |
(941.40) |
Deteriorated |
Industrial
Average |
6.73 |
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 29.9%. 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 -19.52%.
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, its was lower, the company's figure is -22.88%.
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 -941.4%.
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 |
1.24 |
Acceptable |
Industrial
Average |
1.78 |
|
Quick Ratio |
0.84 |
|
|
|
|
Cash Conversion Cycle |
8.31 |
|
|
|
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 1.24 times in 2011, decreased from 1.67 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 0.84 times in 2011,
decreased from 1.31 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 9 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.98 |
Acceptable |
Industrial
Average |
0.75 |
|
Debt to Equity Ratio |
40.15 |
Risky |
Industrial
Average |
1.57 |
|
Times Interest Earned |
(61.90) |
Risky |
Industrial
Average |
3.58 |
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 -61.91 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 0.98 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 Uptrend
Times Interest Earned Uptrend
ACTIVITY :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.59 |
Satisfactory |
Industrial
Average |
3.91 |
|
Total Assets Turnover |
1.17 |
Acceptable |
Industrial
Average |
1.81 |
|
Inventory Conversion Period |
88.01 |
|
|
|
|
Inventory Turnover |
4.15 |
Acceptable |
Industrial
Average |
6.10 |
|
Receivables Conversion Period |
82.21 |
|
|
|
|
Receivables Turnover |
4.44 |
Acceptable |
Industrial
Average |
7.08 |
|
Payables Conversion Period |
161.90 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.44 and 4.42 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
increased from 2010. 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 54 days at the
end of 2010 to 88 days at the end of 2011. This represents a negative trend.
And Inventory turnover has decreased from 6.73 times in year 2010 to 4.15 times
in year 2011.
The company's Total Asset Turnover is calculated as 1.17 times and 1.29
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 Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.03 |
|
UK Pound |
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
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.