MIRA
INFORM REPORT
|
Report Date : |
24.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
ZI-Techasia Solutions Ltd. |
|
|
|
|
Formerly Known As : |
F.E. ZUELLIG
[BANGKOK] LIMITED |
|
|
|
|
Registered Office : |
11th -12th Floor,
Ploenchit Center, 2
Sukhumvit Road, Klongtoey,
Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
05.04.1951 |
|
|
|
|
Com. Reg. No.: |
0105494000477 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject
is engaged in
importing, distributing and servicing
various kinds of
industrial products, for
various industries, such
as paper, textile, wood,
dairy, confectionery, bakery,
beverage, noodle, seafood,
snack foods and
etc. |
|
|
|
|
No. of Employees : |
90 |
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 : |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
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
ZI-TECHASIA
SOLUTIONS LTD.
[FORMER: F.E. ZUELLIG [BANGKOK] LIMITED]
SUMMARY
BUSINESS
ADDRESS : 11th -12th FLOOR,
PLOENCHIT CENTER,
2 SUKHUMVIT
ROAD, KLONGTOEY,
BANGKOK
10110, THAILAND
TELEPHONE : [66]
2656-8710-54
FAX : [66] 2656-8767-9,
2656-8704, 2656-8755
E-MAIL
ADDRESS : mtinfo@zi-th.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1951
REGISTRATION
NO. : 0105494000477
TAX
ID NO. : 3101068221
CAPITAL
REGISTERED : BHT.
82,000,000
CAPITAL
PAID-UP : BHT.
25,000,000
SHAREHOLDER’S PROPORTION : THAI :
0.02%
FOREIGN :
99.98%
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. WILLIAM STUART
MCARTHUR, AMERICAN
CHIEF EXECUTIVE
OFFICER
NO.
OF STAFF : 90
LINES
OF BUSINESS : PERFORMING,
HOLDING AND MANAGEMENT
FUNCTIONS
FOR THE GROUP
AS WELL AS
IMPORTER AND DISTRIBUTOR
OF ZUELLIG INDUSTRIAL
PRODUCTS
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
FOR NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT
WITH GOOD PERFORMANCE
HISTORY
The subject was initially established
on April
5, 1951 as a private
limited company under
the name style
F.E. ZUELLIG [BANGKOK]
LIMITED. It was
set up as
a part of
the Zuellig Group
of Companies, a
diversified services, trading
and manufacturing group
with a strong
presence in the
Asia-Pacific region.
The Zuellig Group
traces its history
back to the
early years of
the century, when
Dr. Frederick E.
Zuellig became a
partner in a
Swiss trading house in
Manila. In Thailand,
Zuellig and its
affiliates employ over 1,000
people. The subject
is the local
operation of a
privately-owned Swiss company,
which has been
in Thailand since
1949. The subject
is an independent
unit within the Zuellig
Group of Companies, performing
holding and management
functions for the
Group and has
its own operating
units, Zuellig Industrial
and Zuellig Agro.
In September 2001 the Zuellig Agro Division
was separated its operation
from the subject
and was setup
to be the
new company “Fezagro
Co., Ltd.”, therefore
the subject became
to operate as
the industrial products
business.
On March 1, 2005, the subject’s name was
changed to ZI-TECHASIA
SOLUTIONS LTD., as
well as becoming
a member of
the Interpacific group.
However, the subject
is currently a
subsidiary of Inter
Ocean Holdings Group [BVI]
Limited. It currently employs approximate
90 staff.
The subject achieved
the standard ISO
9001 certification by
SGS [Thailand] Ltd.,
in September 1999.
The subject’s registered
address is 11th - 12th Floor,
Ploenchit Center, 2
Sukhumvit Rd., Klongtoey,
Bangkok 10110, and this
is the company’s current
operation address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Winyard Chindaprasert |
|
Thai |
60 |
|
Dr. Daniel Christian
Zuellig |
|
Filipino |
52 |
|
Mr. William Stuart
Mcarthur |
|
American |
62 |
|
Mr. Volker Braun |
|
German |
48 |
AUTHORIZED PERSON
Two of the above
directors can jointly sign
on behalf of
the subject with
the company’s affixed.
MANAGEMENT
Mr. William Stuart
Mcarthur is the
Chief Executive Officer.
He is American
nationality with the
age of 62
years old.
Mr. Volker Braun is
the General Manager,
Sales and Marketing
Director.
He is German nationality with
the age of
48 years.
BUSINESS OPERATIONS
The subject is engaged
in importing, distributing and
servicing various kinds
of industrial products,
for various industries,
such as paper, textile, wood, dairy, confectionery, bakery,
beverage, noodle, seafood,
snack foods and
etc. Its products
are divided into
5 product groups
as follows:
1. Machinery & Spare Parts:
Brand: “HABASIT”
-
Power
transmission belt
-
Spindle
tapes
-
Polycord
round belts
-
Folder-gluer
belts
-
High
duty conveyor belts
-
Machine
tapes
-
Timing belts
-
PVC/ PU
conveyor belt
-
Slat
and conveyor chains
-
Tools
-
etc.
2. Tools:
Brands “PFERD”, “HELLER”,
“G-MAN” and “FELCO”
-
Cutting
and grinding wheels
-
Polifan
-
Files
-
Tungsten
carbide burrs
-
HSS
rotary cutters
-
Mounted
points
-
Fan grinders
-
Abrasive
bands and drum
sanders
-
Brushes
-
SDS-plus
hammer bits
-
Masonry bits
-
HSS
twist drill
-
SDS max hammer
bits
-
Handsaws
and saw blades
-
Hand tools
-
Locking
pliers
-
Gas welding
& cutting, pressure regulators
-
etc.
3. Industrial and
Specialty Chemicals:
-
Mild surfactants, betaine,
amphoacetate
-
Surfactants/Household products
-
Emollients/Emulsifiers
-
Active
Ingredients
-
Silicone
surfactants
-
Fragrances
-
Polyurethane
-
Preservatives
-
Phytosphingosine
-
UV absorber
-
Surfactant
blends
-
etc.
4.
Water
Technologies:
Treatment
Chemicals
-
Conductivity,
Resistivity Meter/Controller
-
Automatic
control of cooling
tower water treatment
-
Chemical
controlling systems
-
Cleaning
chemicals
-
Maintenance
chemicals
-
Treatment
chemicals
-
Boiler
treatment
-
Pump system
-
Membrane
-
5. Foods &
Fine Ingredients:
-
Flavours
-
Food
additives
-
Herbal
and fruit extracts
-
Tea & herbal
extracts
-
Emulsifiers
-
Enzymes
-
Cocoa powder
-
Specialty
fats
-
Caramel
color
-
Food color
-
Skim
milk powder
-
etc.
Subject also provides installation and maintenance services for machinery and tools.
IMPORT [COUNTRIES]
Most of its
products are imported
from Switzerland, Germany,
Italy, France,
United States of
America, Spain, Sweden,
India, Republic of
China, Japan,
Taiwan, Malaysia and
etc.
MAJOR SUPPLIERS
|
Name |
Country |
|
|
|
|
ABB Limited |
: United States of America |
|
ABB [Thailand] Ltd. |
: Thailand |
|
Firmenich |
: Switzerland |
|
Habasit |
: Switzerland |
|
Rueggerberg |
: Germany |
|
Rockwell Automation |
: Germany |
|
T.H. Goldschmidt AG. |
: Germany |
|
Evonik Goldschmidt Corp. |
: U.S.A. |
|
Aarhus Karlshamn Sweden AB. |
: Sweden |
|
The Lubrizol Corporation |
: U.S.A. |
SALES [LOCAL]
100% of its
products is sold
locally to manufacturers, wholesalers
and end-users.
SUBSIDIARIES & AFFILIATED
COMPANY
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
ZI-Techasia Solutions Ltd. is
a member of the Interpacific
Group of Companies,
operating in the
following countries:
Philippines Established in
1908
Switzerland ” ”
1924
United States of
America ” ”
1935
Singapore ” ”
1939
Malaysia ” ”
1939
Thailand ” ”
1949
Guam ” ”
1967
Indonesia ” ”
1971
Australia ” ”
1971
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
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.
Sales are by
cash or on
the credits term
of 30-60 days.
BANKING
Hongkong & Shanghai
Banking Corporation
[Bangkok Branch :
968 Rama 4
Rd., Silom, Bangrak,
Bangkok 10500]
Credit Agricole Corporate
and Investment Bank
[Bangkok Branch :
152 Wireless Rd.,
Lumpini, Pathumwan, Bangkok
10330]
Kasikornbank Public Co.,
Ltd.
[Head Office
: 1 Kasikorn
Lane, Rajburana Rd.,
Rajburana, Bangkok 10140]
EMPLOYMENT
The subject employs
approximately 90 staff
[office and sales staff].
LOCATION DETAILS
The premise is
rented for administrative office at
the heading address.
Premise is located
in commercial area.
Warehouse is located in Minburi district, Bangkok.
COMMENT
The company has
earned a distinguished
reputation for its
marketing, distribution and
manufacturing activities in
Thailand in catering
to the country’s
agricultural, healthcare and
industrial sectors for decades.
As well the company has contributed
towards the country’s economic program
and prosperity.
More than 60
years operations in Thailand
has enabled the
company to develop
a combination of world-class expertise and local experience fuels the
efficiency of Thailand’s industrial production plants, boosting their
productivity and strengthening their competitive positions in
both domestic and
international marketplace.
FINANCIAL INFORMATION
The capital was initially
registered at Bht.
3,000,000 divided into
3,000 shares of
Bht. 1,000 each with
fully paid.
On December 27, 1995,
the capital was
increased to Bht. 82,000,000 divided into
82,000 shares of
Bht. 1,000 each, with
the current capital
paid-up at Bht.
25,000,000.
THE SHAREHOLDERS LISTED
WERE : [as at
April 27, 2012] at
Bht. 25,000,000 of
capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Inter Ocean Holdings
Group [BVI] Limited Nationality: BVI Address : Road
Town, Tortola, British
Virgin Islands |
81,974 |
99.96 |
|
Mr. William Stuart
Mcarthur Nationality: American Address : 60
Soi Langsuan, Lumpinee,
Pathumwan, Bangkok |
13 |
0.02 |
|
Mr. Winyard Chindaprasert Nationality: Thai Address : 6
Pattanakarn 54 Rd.,
Suanluang,
Suanluang, Bangkok |
13 |
0.02 |
Total Shareholders : 3
Share Structure [as at April
27, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
13 |
0.02 |
|
Foreign |
2 |
81,987 |
99.98 |
|
Total |
3 |
82,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.:
Ms. Suleeporn Treeyaprasertporn
No. 5236
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 in Hand
& at Bank |
14,328,881 |
9,493,746 |
38,303,853 |
|
Trade Accounts Receivable |
200,286,067 |
202,325,102 |
140,165,929 |
|
Related Company Receivable |
1,886,717 |
1,489,119 |
6,694,145 |
|
Inventories |
158,150,323 |
133,757,584 |
119,339,303 |
|
Deferred Income |
2,058,951 |
1,777,218 |
769,534 |
|
Prepaid Expenses |
1,037,677 |
1,542,173 |
1,408,369 |
|
Other Current Assets
|
2,406,387 |
2,874,175 |
3,540,260 |
|
|
|
|
|
|
Total Current Assets
|
380,155,003 |
353,259,117 |
310,221,393 |
|
Investment in Other
Companies |
189,110 |
189,110 |
189,110 |
|
Building & Equipment
Improvement |
13,290,002 |
12,855,026 |
13,023,397 |
|
Intangible Assets |
1,984,925 |
18,793 |
29,759 |
|
Other Non-current Assets |
3,193,905 |
3,598,905 |
3,435,603 |
|
Total Assets |
398,812,945 |
369,920,951 |
326,899,262 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Short-term Loan from Financial Institution |
10,000,000 |
- |
- |
|
Trade Accounts Payable |
121,454,195 |
128,636,519 |
94,681,576 |
|
Other Payable |
5,430,396 |
5,072,661 |
5,474,840 |
|
Related Company Payable |
15,894,884 |
2,494,904 |
2,666,110 |
|
Accrued Income Tax |
2,178,699 |
8,285,557 |
531,025 |
|
Accrued Expenses |
12,673,901 |
10,827,741 |
10,578,708 |
|
Other Current Liabilities |
785,188 |
3,487,823 |
561,449 |
|
|
|
|
|
|
Total Current Liabilities |
168,417,263 |
158,805,205 |
114,493,708 |
|
Obligation for Employees
Benefit |
14,419,494 |
11,459,722 |
17,816,229 |
|
Total Liabilities |
182,836,757 |
170,264,927 |
132,309,937 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value Authorized &
issued share capital
82,000 shares |
82,000,000 |
82,000,000 |
82,000,000 |
|
|
|
|
|
|
Capital Paid |
25,000,000 |
25,000,000 |
25,000,000 |
|
Retained Earning Appropriated for Statutory Reserve |
8,200,000 |
8,200,000 |
8,200,000 |
|
Unappropriated |
182,776,188 |
166,456,024 |
161,389,325 |
|
Total Shareholders' Equity |
215,976,188 |
199,656,024 |
194,589,325 |
|
Total Liabilities &
Shareholders' Equity |
398,812,945 |
369,920,951 |
326,899,262 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales & Service Income |
827,078,909 |
802,287,929 |
763,267,069 |
|
Other Income |
9,083,608 |
6,726,438 |
4,605,886 |
|
Total Revenues |
836,162,517 |
809,014,367 |
767,872,955 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service
|
629,770,257 |
607,937,156 |
570,672,430 |
|
Selling Expenses |
107,528,796 |
100,057,138 |
127,885,651 |
|
Administrative Expenses |
72,673,652 |
62,774,423 |
63,566,296 |
|
Total Expenses |
809,972,705 |
770,768,717 |
762,124,377 |
|
|
|
|
|
|
Profit before Financial
Cost & Income Tax |
26,189,812 |
38,245,650 |
5,748,578 |
|
Financial Cost |
[938,168] |
- |
[27,376] |
|
Profit before Income Tax |
25,251,644 |
38,245,650 |
5,721,202 |
|
Income Tax |
[8,931,480] |
[11,478,471] |
[3,990,201] |
|
|
|
|
|
|
Net Profit / [Loss] |
16,320,164 |
26,767,179 |
1,821,001 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.26 |
2.22 |
2.71 |
|
QUICK RATIO |
TIMES |
1.29 |
1.34 |
1.62 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
62.23 |
62.41 |
58.61 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.07 |
2.17 |
2.33 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
91.66 |
80.31 |
76.33 |
|
INVENTORY TURNOVER |
TIMES |
3.98 |
4.55 |
4.78 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
88.39 |
92.05 |
67.03 |
|
RECEIVABLES TURNOVER |
TIMES |
4.13 |
3.97 |
5.45 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
70.39 |
77.23 |
60.56 |
|
CASH CONVERSION CYCLE |
DAYS |
109.66 |
95.12 |
82.80 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
76.14 |
75.78 |
74.77 |
|
SELLING & ADMINISTRATION |
% |
21.79 |
20.30 |
25.08 |
|
INTEREST |
% |
0.11 |
- |
0.00 |
|
GROSS PROFIT MARGIN |
% |
24.95 |
25.06 |
25.84 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.17 |
4.77 |
0.75 |
|
NET PROFIT MARGIN |
% |
1.97 |
3.34 |
0.24 |
|
RETURN ON EQUITY |
% |
7.56 |
13.41 |
0.94 |
|
RETURN ON ASSET |
% |
4.09 |
7.24 |
0.56 |
|
EARNING PER SHARE |
BAHT |
652.81 |
1,070.69 |
72.84 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.46 |
0.46 |
0.40 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.85 |
0.85 |
0.68 |
|
TIME INTEREST EARNED |
TIMES |
27.92 |
- |
209.99 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
3.09 |
5.11 |
|
|
OPERATING PROFIT |
% |
(31.52) |
565.31 |
|
|
NET PROFIT |
% |
(39.03) |
1,369.92 |
|
|
FIXED ASSETS |
% |
3.38 |
(1.29) |
|
|
TOTAL ASSETS |
% |
7.81 |
13.16 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 3.09%. Turnover has increased from THB
802,287,929.00 in 2010 to THB 827,078,909.00 in 2011. While net profit has decreased
from THB 26,767,179.00 in 2010 to THB 16,320,164.00 in 2011. And total assets
has increased from THB 369,920,951.00 in 2010 to THB 398,812,945.00 in 2011.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
24.95 |
Impressive |
Industrial
Average |
19.71 |
|
Net Profit Margin |
1.97 |
Satisfactory |
Industrial
Average |
2.12 |
|
Return on Assets |
4.09 |
Impressive |
Industrial
Average |
3.30 |
|
Return on Equity |
7.56 |
Impressive |
Industrial
Average |
7.27 |
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 24.95%. 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 1.97%.
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. Return on Assets ratio is 4.09%, 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. Return on Equity ratio
is 7.56%, 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.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
2.26 |
Impressive |
Industrial
Average |
1.73 |
|
Quick Ratio |
1.29 |
|
|
|
|
Cash Conversion Cycle |
109.66 |
|
|
|
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 2.26 times in 2011, increased from 2.22 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 1.29 times in 2011,
decreased from 1.34 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 110 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.46 |
Impressive |
Industrial
Average |
0.54 |
|
Debt to Equity Ratio |
0.85 |
Impressive |
Industrial
Average |
1.22 |
|
Times Interest Earned |
27.92 |
Impressive |
Industrial
Average |
4.00 |
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 27.92 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 0.46 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 Downtrend
Times Interest Earned Uptrend
ACTIVITY : IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
62.23 |
Impressive |
Industrial
Average |
6.76 |
|
Total Assets Turnover |
2.07 |
Impressive |
Industrial
Average |
1.53 |
|
Inventory Conversion Period |
91.66 |
|
|
|
|
Inventory Turnover |
3.98 |
Impressive |
Industrial
Average |
3.48 |
|
Receivables Conversion Period |
88.39 |
|
|
|
|
Receivables Turnover |
4.13 |
Satisfactory |
Industrial
Average |
4.47 |
|
Payables Conversion Period |
70.39 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.13 and 3.97 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 80 days at the
end of 2010 to 92 days at the end of 2011. This represents a negative trend.
And Inventory turnover has decreased from 4.55 times in year 2010 to 3.98 times
in year 2011.
The company's Total Asset Turnover is calculated as 2.07 times and 2.17
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.54.30 |
|
|
1 |
Rs.82.88 |
|
Euro |
1 |
Rs.70.80 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.