MIRA
INFORM REPORT
|
Report Date : |
26.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
B 2 S
CO., LTD. |
|
|
|
|
Registered Office : |
16th, 17th
Floor, Jewelry Trade
Center Building, 919/555 Silom
Road, Bangrak, Bangkok
10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
14.03.1995 |
|
|
|
|
Com. Reg. No.: |
0105538032743 [Former :
665/2538] |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Importer
& Distributor of magazines, books
and stationeries |
|
|
|
|
No. of Employees : |
1500 |
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 : |
Good |
|
Payment Behaviour : |
Regular |
|
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 – March 31st 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
B 2 S CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 16th, 17th FLOOR,
JEWELRY TRADE CENTER
BUILDING,
919/555 SILOM ROAD,
BANGRAK, BANGKOK 10500
TELEPHONE : [66] 2101-7000
FAX :
[66] 2101-7005-6
E-MAIL
ADDRESS : b2sonlineshopping@b2s.co.th
REGISTRATION
ADDRESS : SAME
AS BUISINESS ADDRESS
ESTABLISHED
: 1995
REGISTRATION
NO. : 0105538032743 [Former : 665/2538]
TAX
ID NO. : 3011596203
CAPITAL REGISTERED : BHT. 640,000,000
CAPITAL PAID-UP : BHT.
640,000,000
SHAREHOLDER’S PROPORTION : THAI 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
NAT WONGVANICH, THAI
CHIEF EXECUTIVE
OFFICER & PRESIDENT
NO.
OF STAFF : 1,500
LINES
OF BUSINESS : MAGAZINES, BOOKS
AND STATIONERIES
IMPORTER
& DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The subject was
established on March
14, 1995 as
a private limited
company under the registered name “Zen Department Store Co., Ltd.” by
Thai group, Chirathiwat
family. On March
12, 2001, the subject’s
name was changed
to B 2 S CO.,
LTD. Its business
objective is to
supply various domestic
and international magazines,
books and stationeries, under
the name “B2S”.
There are currently 89
branches. Subject employs
approximately 1,500 staff.
Presently, the subject
is a wholly
owned subsidiary of
Office Mate Public
Company Limited, which
is a member
of The Central
Group of companies.
The subject’s registered
address was initially
at 12th, 15th Floor,
Jewelry Trade Center
Building, 919/3, 919/555
Silom Rd., Silom,
Bangrak, Bangkok 10500.
In 2012, its
address was moved
from 12th, 15th Floor,
to 16th, 17th Floor,
Jewelry Trade Center
Building, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sutthichai Chirathiwat |
[x] |
Thai |
73 |
|
Mr. Sutthichart Chirathiwat |
[x] |
Thai |
68 |
|
Mr. Sutthilak Chirathiwat |
[x] |
Thai |
57 |
|
Mr. Prinn Chirathiwat |
[x] |
Thai |
51 |
|
Mr. Tos Chirathiwat |
[x] |
Thai |
49 |
|
Mr. Sutthisarn Chirathiwat |
[x] |
Thai |
46 |
|
Ms. Wantana Prueksawan |
|
Thai |
66 |
|
Ms. Sakulya Ua-wattanasakul |
[x] |
Thai |
44 |
|
Mrs. Vimolmas Kuakomoldej |
|
Thai |
55 |
|
Mr. Nat Wongvanich |
[x] |
Thai |
43 |
AUTHORIZED PERSON
Any two of
the mentioned directors
[x] can jointly
sign or any one
of the directors
[x] can jointly
sign with one
of the rest
directors on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Nat Wongvanich
is the Chief
Executive Officer &
President.
He is Thai
nationality with the
age of 43
years old.
Ms. Jutharas Wongsuwan is
the Assistant President [Marketing].
She is Thai
nationality.
Ms. Kesarin Anek is
the Assistant President
[Production Administration.
She is Thai
nationality.
Ms. Rudeeporn Sirapaniwong is
the Assistant President
[Operation].
She is Thai
nationality.
Mrs. Rattanaporn Taiyasunan is
the Marketing Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a retailer
of book, magazine, stationery
and entertainment products
with over 60,000
product items, as
well as provide
photocopy, mailing and
other services: free wi-fi
internet, trading online
and etc. through the
subject’s shop under the
name “B 2 S”. The
products consist of
5 main sections
as follows:
1. Books
The products
are foreign book,
business & computer,
literature, learning,
living, media
education, kid’s corner and magazine.
2. Stationery
The products
are pen, note
book, office supplies,
paper, stapler, adhesive
taffies,
file & folder, bulletin
board, note pad,
art & craft and etc.
3. Entertainment
The products
are CD, VCD
and DVD movies
and music both
local and
international.
4. Copy and
Mail Center
5. Customer Service
IMPORT [COUNTRIES]
The products are
imported from United
States of America,
France, Korea, Republic of
China, United Kingdom, Singapore,
Japan and Hong
Kong.
MAJOR SUPPLIER
Office Mate Public
Company Limited :
Thailand
SALES [LOCAL]
100% of the
products is sold
locally to retailers
and end-users, through
89 branches of “B 2 S” shops, located
at the leading
department stores, such as Central
Department Store, Robinson Department
Store, Big C
Supercenter and etc.,
as well as
local department store
nationwide.
AFFILIATED COMPANIES
Central Group of
Companies [retails business]
|
Name |
Country |
Business Type |
|
Central Retail Corporation
Ltd. |
Thailand |
Holding & management
company |
|
Ratchada - Nonsee Department Store Co., Ltd. |
Thailand |
Department Store |
|
Bangna Department Store Co.,
Ltd. |
Thailand |
Department Store |
|
Central Pinklao
Department Co., Ltd. |
Thailand |
Department Store |
|
Big C Supercenter Public Co., Ltd. |
Thailand |
Discount store |
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.
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.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office : 333 Silom
Rd., Silom, Bangrak,
Bangkok]
EMPLOYMENT
The subject employs
approximately 1,500 staff.
[office and sales staff]
LOCATION DETAILS
The premise is
rented for operating
office at the
heading address. Premise
is located in
a prime commercial
area.
COMMENT
After the company
has been introduced
in former book
and stationery departments
in some branches of
Central and Robinson Department Store,
sales had increased
dramatically.
It is the
Thailand leading and largest
book store chain which
provides all clients needs.
Its business has
grown very well and
expanding steadily.
FINANCIAL INFORMATION
The capital was
registered at Bht.
200 million, divided
into 20,000,000 shares
of Bht. 10 each.
The capital was
increased later as
the followings:
Bht. 250,000,000
on October 18,
2001
Bht. 340,000,000
on November 9,
2001
Bht. 490,000,000
on March 29,
2002
Bht. 640,000,000
on September 16,
2002
The latest registered
capital was increased
to Bht. 640
million, divided into
64,000,000 shares of
Bht. 10 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE : [as at
December 21, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Office
Mate Public Company
Limited Nationality: Thai Address : 24
Soi Onnuch 66/1,
Onnuch Rd.,
Suanluang, Bangkok |
63,999,979 |
100.00 |
|
Mr. Wanchai Chirathiwat Nationality: Thai Address : 118/1 Soi Saladaeng 1, Silom, Bangrak, Bangkok |
3 |
- |
|
Mr. Sutthichai Chirathiwat Nationality: Thai Address :
124/2 Soi
Saladaeng 1, Silom,
Bangrak, Bangkok |
3 |
- |
|
Mr. Sutthikiat Chirathiwat Nationality: Thai Address : 1695 Phaholyothin Rd., Jatujak, Bangkok |
3 |
- |
|
Mr. Sutthichart Chirathiwat Nationality: Thai Address : 118/2 Soi Saladaeng 1, Silom, Bangrak, Bangkok |
3 |
- |
|
Mr. Sutthilak Chirathiwat Nationality: Thai Address :
124 Soi
Saladaeng 1, Silom,
Bangrak, Bangkok |
3 |
- |
|
Mr. Prinn Chirathiwat Nationality: Thai Address : 22/15 Phaholyothin 23 Rd., Ladyao, Jatujak, Bangkok |
3 |
- |
|
Mr. Tos
Chirathiwat Nationality: Thai Address : 22/14 Phaholyothin 23 Rd., Jatujak, Bangkok |
3 |
- |
Total Shareholders : 8
Share Structure [as
at December 21,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
8 |
64,000,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
8 |
64,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Teerapong Kaewratanapattama No.
2501
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 [Adjusted] |
2009 |
|
|
|
|
|
|
Cash and Cash Equivalents |
152,274,839 |
477,782,495 |
223,864,338 |
|
Trade Accounts and
Other Receivable |
80,296,742 |
99,500,741 |
137,878,955 |
|
Related Company Receivable |
- |
- |
7,783,317 |
|
Inventories |
360,072,799 |
395,265,751 |
460,317,642 |
|
Short-term Loan and Deferred
Interest |
506,778,033 |
96,272,995 |
- |
|
Other Current Assets
|
- |
- |
3,457,594 |
|
|
|
|
|
|
Total Current Assets
|
1,099,422,413 |
1,068,821,982 |
833,301,846 |
|
Investment in Subsidiaries |
10,019,970 |
10,019,970 |
10,019,970 |
|
Investment Funds |
- |
- |
211,756,000 |
|
Long-term Loan and Deferred
Interest |
9,603,508 |
10,400,699 |
- |
|
Equipment |
161,317,210 |
114,656,718 |
140,644,568 |
|
Other Non-current Assets |
27,272,598 |
32,151,897 |
31,808,899 |
|
Total Assets |
1,307,635,699 |
1,236,051,266 |
1,227,531,283 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 [Adjusted] |
2009 |
|
|
|
|
|
|
Trade Accounts and
Other Payable |
707,529,063 |
761,636,021 |
683,710,792 |
|
Other Payable-Related Company |
- |
- |
50,465,062 |
|
Current Portion of
Long-term Loans |
104,948,141 |
106,407,442 |
121,116,196 |
|
Accrued Income Tax |
33,926,630 |
7,891,806 |
- |
|
Other Current Liabilities |
- |
- |
89,878,207 |
|
|
|
|
|
|
Total Current Liabilities |
846,403,834 |
875,935,269 |
945,170,257 |
|
|
|
|
|
|
Employee Benefits Obligation |
10,793,968 |
9,073,864 |
- |
|
Total Liabilities |
857,197,802 |
885,009,133 |
945,170,257 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 64,000,000 shares |
640,000,000 |
640,000,000 |
640,000,000 |
|
|
|
|
|
|
Capital Paid |
640,000,000 |
640,000,000 |
640,000,000 |
|
Unrealized in Funds |
- |
- |
11,756,000 |
|
Retained Earning Unappropriated |
[189,562,103] |
[288,957,867] |
[369,394,974] |
|
Total Shareholders' Equity |
450,437,897 |
351,042,133 |
282,361,026 |
|
Total Liabilities &
Shareholders' Equity |
1,307,635,699 |
1,236,051,266 |
1,227,531,283 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 [Adjusted] |
2009 |
|
|
|
|
|
|
Sales Income |
3,051,012,269 |
2,971,174,286 |
3,111,640,063 |
|
Rental and Service
Income |
17,531,568 |
25,124,312 |
16,272,503 |
|
Interest Income |
16,185,761 |
5,042,986 |
1,608,050 |
|
Other Income |
173,947,471 |
178,419,211 |
154,347,204 |
|
Total Revenues |
3,258,677,069 |
3,179,760,795 |
3,283,867,820 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,317,500,729 |
2,304,486,944 |
2,415,880,213 |
|
Selling Expenses |
495,571,144 |
482,625,027 |
503,960,329 |
|
Administrative Expenses |
282,116,195 |
272,864,136 |
263,703,389 |
|
Total Expenses |
3,095,188,068 |
3,059,976,107 |
3,183,543,931 |
|
|
|
|
|
|
Profit before Financial Cost & Income
Tax |
163,489,001 |
119,784,688 |
100,323,889 |
|
Financial Costs |
[5,642,844] |
[4,323,743] |
[2,499,803] |
|
Profit before Income
Tax |
157,846,157 |
115,460,945 |
97,824,086 |
|
Income Tax |
[58,450,393] |
[27,530,945] |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
99,395,764 |
87,930,000 |
97,824,086 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.30 |
1.22 |
0.88 |
|
QUICK RATIO |
TIMES |
0.27 |
0.66 |
0.39 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
19.02 |
26.13 |
22.24 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.35 |
2.42 |
2.55 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
56.71 |
62.60 |
69.55 |
|
INVENTORY TURNOVER |
TIMES |
6.44 |
5.83 |
5.25 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
9.55 |
12.12 |
16.09 |
|
RECEIVABLES TURNOVER |
TIMES |
38.22 |
30.11 |
22.69 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
111.43 |
120.63 |
103.30 |
|
CASH CONVERSION CYCLE |
DAYS |
(45.17) |
(45.91) |
(17.66) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
75.52 |
76.91 |
77.24 |
|
SELLING & ADMINISTRATION |
% |
25.34 |
25.21 |
24.54 |
|
INTEREST |
% |
0.18 |
0.14 |
0.08 |
|
GROSS PROFIT MARGIN |
% |
30.67 |
29.21 |
27.75 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.33 |
4.00 |
3.21 |
|
NET PROFIT MARGIN |
% |
3.24 |
2.93 |
3.13 |
|
RETURN ON EQUITY |
% |
22.07 |
25.05 |
34.65 |
|
RETURN ON ASSET |
% |
7.60 |
7.11 |
7.97 |
|
EARNING PER SHARE |
BAHT |
1.55 |
1.37 |
1.53 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.66 |
0.72 |
0.77 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.90 |
2.52 |
3.35 |
|
TIME INTEREST EARNED |
TIMES |
28.97 |
27.70 |
40.13 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
2.41 |
(4.21) |
|
|
OPERATING PROFIT |
% |
36.49 |
19.40 |
|
|
NET PROFIT |
% |
13.04 |
(10.11) |
|
|
FIXED ASSETS |
% |
40.70 |
(18.48) |
|
|
TOTAL ASSETS |
% |
5.79 |
0.69 |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 2.41%. Turnover has increased from THB
2,996,298,598.00 in 2010 to THB 3,068,543,837.00 in 2011. While net profit has increased
from THB 87,930,000.00 in 2010 to THB 99,395,764.00 in 2011. And total assets
has increased from THB 1,236,051,266.00 in 2010 to THB 1,307,635,699.00 in
2011.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
30.67 |
Impressive |
Industrial
Average |
14.89 |
|
Net Profit Margin |
3.24 |
Impressive |
Industrial
Average |
1.50 |
|
Return on Assets |
7.60 |
Impressive |
Industrial
Average |
3.04 |
|
Return on Equity |
22.07 |
Impressive |
Industrial
Average |
7.31 |
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 30.67%. 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 3.24%, higher figure when
compared with those of its average competitors in the same industry, indicated
that business was an efficient operator
in a dominant position within its industry.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. Return on Assets ratio is
7.6%, 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 22.07%, 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 Uptrend
Return on Equity Downtrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.30 |
Satisfactory |
Industrial
Average |
1.56 |
|
Quick Ratio |
0.27 |
|
|
|
|
Cash Conversion Cycle |
(45.17) |
|
|
|
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 1.3 times in 2011, increased from 1.22 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 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 0.27 times in 2011,
decreased from 0.66 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 -46 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.66 |
Acceptable |
Industrial
Average |
0.61 |
|
Debt to Equity Ratio |
1.90 |
Risky |
Industrial
Average |
1.51 |
|
Times Interest Earned |
28.97 |
Impressive |
Industrial
Average |
2.25 |
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 28.98 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 0.66 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
19.02 |
Impressive |
Industrial
Average |
7.49 |
|
Total Assets Turnover |
2.35 |
Impressive |
Industrial
Average |
2.01 |
|
Inventory Conversion Period |
56.71 |
|
|
|
|
Inventory Turnover |
6.44 |
Impressive |
Industrial
Average |
5.04 |
|
Receivables Conversion Period |
9.55 |
|
|
|
|
Receivables Turnover |
38.22 |
Impressive |
Industrial
Average |
4.58 |
|
Payables Conversion Period |
111.43 |
|
|
|
The company's Account Receivable Ratio is calculated as 38.22 and 30.11
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 decreased from 63 days at the
end of 2010 to 57 days at the end of 2011. This represents a positive trend.
And Inventory turnover has increased from 5.83 times in year 2010 to 6.44 times
in year 2011.
The company's Total Asset Turnover is calculated as 2.35 times and 2.42
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 Downtrend
Inventory Turnover Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.17 |
|
UK Pound |
1 |
Rs.82.99 |
|
Euro |
1 |
Rs.70.62 |
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.