MIRA INFORM REPORT
|
Report Date : |
03.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
THEERA MUSIC CO., LTD. |
|
|
|
|
Registered Office : |
100-108, 86/6-7 Verng Nakornkasem, New Road, Samphantawong, Bangkok 10100, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
03.03.1986 |
|
|
|
|
Com. Reg. No.: |
0105529007359 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Distributor & Service Provider of Music Instruments |
|
|
|
|
No. of Employees : |
30 |
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 – 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
THEERA
MUSIC CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 100-108, 86/6-7 VERNG NAKORNKASEM,
NEW ROAD,
SAMPHANTAWONG, BANGKOK 10100,
THAILAND
TELEPHONE : [66] 2223-9127,
2221-1655, 2222-8861
FAX :
[66] 2225-3132
E-MAIL
ADDRESS : info.theeramusic@gmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1986
REGISTRATION
NO. : 0105529007359
TAX
ID NO. : 3101380262
CAPITAL REGISTERED : BHT. 40,000,000
CAPITAL PAID-UP : BHT.
40,000,000
SHAREHOLDER’S PROPORTION : THAI
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. THEERA TAECHAYUENYONG, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 30
LINES
OF BUSINESS : MUSIC
INSTRUMENTS
IMPORTER, DISTRIBUTOR & SERVICE
PROVIDER
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 3, 1986 as a
private limited company under
the registered name
THEERA MUSIC CO., LTD. by
Thai groups. Its business
objective is to
import and distribute
various kinds of
musical instruments to domestic
market. It currently
employs approximately 30
staff.
The subject’s registered address is 100-108,
86/6-7 Verng Nakornkasem, New Rd., Samphantawong, Bangkok 10100, and this is the
subject’s current operation
address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Theera Taechayuenyong |
[x] |
Thai |
71 |
|
Mrs. Surang Taechayuenyong |
|
Thai |
67 |
AUTHORIZED PERSON
Only the mentioned director [x]
can sign on
behalf of the subject
with company’s affixed.
MANAGEMENT
Mr. Theera Taechayuenyong is
the Managing Director.
He is Thai
nationality with the
age of 71
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing various
kinds of music
instruments as follows:
Products Brands
·
Pianos
Digital home pianos “ROLAND”
Stage pianos “ROLAND”, “M-AUDIO”
Acoustic pianos “SAMICK SANDNER”,
“KOHLER & CAMPBELL”
·
Keyboards “SYNTHESIZERS”, “ROLAND”,
“M-AUDIO”
·
Guitars
Electric guitar “FENDER”, “GODIN”,
“FERNANDES”, “BURNY”
“BLADES”, “SPEARS”,
“MAGNET”
Acoustic guitar “SEAGULL”, “SIMON & PATRICK”, “WALDEN”,
“MAGNET”, “EAGLE”
Acoustic electric guitar
“SEAGULL”, “WALDEN”
Classical Guitars “LA PATRIE”, “ROSNER”,
& “TANGLEWOOD”
Ukuleles “LANIKAI”, “HAHANA”
Compact pedal effects “BOSS”
Guitar accessories
·
Basses
Bass guitar “GODIN”, “FERNANDES”,
“SPEARS”, “MAGNET”
Bass guitar effects “BOSS”
Bass guitar amps “ROLAND”, “GENS
BENZ”
·
Drum
V-drum “ROLAND”
Acoustic drum “GRETSCH”, “DIXON”,
“CB”, “XT”
Drumheads “EVANS”
Drumsticks “ZILDJIAN”
Drum hardware “GIBRALTAR”, “DIXON”,
“REGENT”
·
Strings
Violin “WU ZULIANG”,
“GIOVANNI”, “EMPEROR”
Cellos “WU ZUILIANG”,
“GIOVANNI”
String accessories “D’ADDARIO”, “PARKSONS”,
“MAGNET”
·
Brass
& Winds
Flutes “TREVOR JAMES”,
“YAMAHA”, “ANTIQUA”
Saxophones “ANTIQUA”, “YAMAHA”, “IMPERIAL”
Trumpets “BLESSING”, “YAMAHA”,
“IMPERIAL”
Trombones “BLESSING”, “YAMAHA”,
“IMPERIAL”
·
Pro Audio
Mixer equipment “ROLAND”, “SAMICK”
Signal processor “ROLAND”, “M-AUDIO”
Power amplifiers “ROLAND”, “SAMICK”
Speakers “ROLAND”, “SAMICK”
Pro audio accessories “ROLAND”, “SAMICK”
·
Recording
Audio interfaces “ROLAND”, “EDIROL”,
“M-AUDIO”
Digital recorders “ROLAND”
Studio mixers “ROLAND”, “EDIROL”,
“M-AUDIO”
Software “ROLAND”, “EDIROL”,
“M-AUDIO”
Microphone “ROLAND”, “EDIROL”,
“M-AUDIO”
Studio pre-amps “ROLAND”, “EDIROL”,
“M-AUDIO”
Studio monitor “ROLAND”, “EDIROL”,
“M-AUDIO”
Headphone “ROLAND”, “EDIROL”,
“M-AUDIO”
Recording accessories “ROLAND”, “EDIROL”,
“M-AUDIO”
The subject
also provides repair,
maintenance and rental
services of music
instruments.
PURCHASE
90% of the products is
imported from U.S.A., Japan, Canada, France, Republic of
China, Taiwan, Germany,
Netherlands and U.K.,
the remaining 10% is
purchased from local
suppliers and agents.
MAJOR
SUPPLIERS
Roland
Corporation : Japan
Boss
Corporation : Japan
The
Avedis Zildjian Inc. : U.S.A.
LR
Baggs : U.S.A.
Godin
Guitars : Canada
Dean
Markley String Inc. : U.S.A.
E.K.
Blessing Co. Inc. :
U.S.A.
Kohler & Cambell Pianos : U.S.A.
SALES
100% of the
products is sold
locally to wholesalers,
retailers and end-users.
SUBSIDIARY AND AFFILIATED
COMPANY
The subject is
not found to
have any subsidiary
nor 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 credit term
of 30 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
Kasikornbank
Public Co., Ltd.
EMPLOYMENT
The
subject employs approximately
30 staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial
area.
Branches:
-
49
Verng Nakornkasem, New
Rd., Samphantawong, Bangkok 10100.
-
31
Verng Nakornkasem, New
Rd., Samphantawong, Bangkok
10100.
-
330
Verng Nakornkasem, New Rd.,
Samphantawong, Bangkok 10100.
Warehouse:
-
1/21-22
Damrongrak Rd., Banbart,
Pomprab, Bangkok 10100.
-
330-332
Soi Burirom, New
Rd., Banbart, Pomprab,
Bangkok 10100.
COMMENT
Subject had good business performance in
the previous year.
However, sales had gradually
declined in line with slow
consumption in domestic
market. Growth in
this category in
the first six
months was below
last year’s average
growth.
FINANCIAL INFORMATION
The
capital was registered at
Bht. 2,000,000 divided into 2,000
shares of Bht. 1,000 each
with fully paid.
The
capital was increased
later as follows:
Bht. 12,000,000
on June 16,
1999
Bht. 20,000,000
on September 7,
2004
Bht. 40,000,000
on October 3,
2005
The
latest registered capital
was increased to
Bht. 40 million, divided into
40,000 shares of
Bht. 1,000 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Theera Taechayuenyong Nationality: Thai Address : 108
Verng Nakornkasem, New
Rd.,
Samphantawong, Bangkok |
9,000 |
22.50 |
|
Mrs. Surang Taechayuenyong Nationality: Thai Address : 108
Verng Nakornkasem, New
Rd.,
Samphantawong, Bangkok |
9,000 |
22.50 |
|
Mr. Chatchai Taechayuenyong Nationality: Thai Address : 108
Verng Nakornkasem, New
Rd.,
Samphantawong, Bangkok |
4,400 |
11.00 |
|
Mr. Kittipong Taechayuenyong Nationality: Thai Address : 108
Verng Nakornkasem, New
Rd.,
Samphantawong, Bangkok |
4,400 |
11.00 |
|
Ms. Pattamaporn Taechayuenyong Nationality: Thai Address : 108
Verng Nakornkasem, New
Rd.,
Samphantawong, Bangkok |
4,400 |
11.00 |
|
Ms. Amporn Taechayuenyong Nationality: Thai Address : 108
Verng Nakornkasem, New
Rd.,
Samphantawong, Bangkok |
4,400 |
11.00 |
|
Mr. Pipat Taechayuenyong Nationality: Thai Address : 108
Verng Nakornkasem, New
Rd.,
Samphantawong, Bangkok |
4,400 |
11.00 |
Total Shareholders : 7
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
40,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
40,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Soraya Jirapornthipsakul No.
8189
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
1,436,184.51 |
2,860,786.14 |
1,902,052.63 |
|
Trade Accounts and
Other Receivable |
28,559,337.47 |
18,166,501.14 |
22,313,597.76 |
|
Revenue Department Receivable |
279,536.61 |
- |
- |
|
Inventories |
79,086,516.68 |
68,417,116.75 |
63,797,562.27 |
|
Other Current Assets
|
170,572.79 |
159,506.35 |
177,764.41 |
|
|
|
|
|
|
Total Current Assets
|
109,532,148.06 |
89,603,910.38 |
88,190,977.07 |
|
Fixed Assets |
7,398,003.91 |
7,684,382.03 |
7,659,176.17 |
|
Other Non - current Assets |
9,749,579.22 |
11,456,713.96 |
28,507.48 |
|
Total Assets |
126,679,731.19 |
108,745,006.37 |
95,878,660.72 |
LIABILITIES & SHAREHOLDERS’
EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts and
Other Payable |
213,448.24 |
1,283,635.27 |
2,673,735.88 |
|
Revenue Department Payable |
- |
4,777,618.90 |
5,127.97 |
|
Accrued Income Tax |
1,076,591.97 |
1,019,834.99 |
- |
|
Tax Payable on
the Increase |
- |
- |
43,051.09 |
|
Other Current Liabilities |
2,855,808.84 |
893,808.01 |
7,420,906.52 |
|
|
|
|
|
|
Total Current Liabilities |
4,145,849.05 |
7,974,897.17 |
10,142,821.46 |
|
|
|
|
|
|
Long-term Loan from Director |
30,500,000.00 |
15,500,000.00 |
5,000,000.00 |
|
Total Liabilities |
34,645,849.05 |
23,474,897.17 |
15,142,821.46 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 40,000 shares |
40,000,000.00 |
40,000,000.00 |
40,000,000.00 |
|
|
|
|
|
|
Capital Paid |
40,000,000.00 |
40,000,000.00 |
40,000,000.00 |
|
Retained Earnings Unappropriated |
52,033,882.14 |
45,270,109.20 |
40,735,839.26 |
|
Total Shareholders' Equity |
92,033,882.14 |
85,270,109.20 |
80,735,839.26 |
|
Total Liabilities & Shareholders' Equity |
126,679,731.19 |
108,745,006.37 |
95,878,660.72 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
230,801,631.43 |
182,453,286.82 |
160,656,619.98 |
|
Other Income |
1,196,026.92 |
499,424.75 |
1,017,557.47 |
|
Total Revenues |
231,997,658.35 |
182,952,711.57 |
161,674,177.45 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
211,926,611.45 |
165,348,378.01 |
145,800,952.01 |
|
Administrative Expenses |
11,169,102.59 |
11,051,343.39 |
9,848,146.93 |
|
Other Expenses |
22,744.95 |
27,718.50 |
18,665.31 |
|
Total Expenses |
223,118,458.99 |
176,427,439.90 |
155,667,764.25 |
|
|
|
|
|
|
Profit /[Loss] before Financial Cost & Income
Tax |
8,879,199.36 |
6,525,271.67 |
6,006,413.20 |
|
Financial Costs |
[68,529.20] |
[4,369.25] |
[3,636.65] |
|
Profit /[Loss] before Income
Tax |
8,810,670.16 |
6,520,902.42 |
6,002,776.55 |
|
Income Tax |
[2,046,897.22] |
[1,986,632.48] |
[1,830,928.34] |
|
|
|
|
|
|
Net Profit / [Loss] |
6,763,772.94 |
4,534,269.94 |
4,171,848.21 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
26.42 |
11.24 |
8.69 |
|
QUICK RATIO |
TIMES |
7.30 |
2.64 |
2.39 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
31.20 |
23.74 |
20.98 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.82 |
1.68 |
1.68 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
136.21 |
151.03 |
159.71 |
|
INVENTORY TURNOVER |
TIMES |
2.68 |
2.42 |
2.29 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
45.17 |
36.34 |
50.69 |
|
RECEIVABLES TURNOVER |
TIMES |
8.08 |
10.04 |
7.20 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
0.37 |
2.83 |
6.69 |
|
CASH CONVERSION CYCLE |
DAYS |
181.01 |
184.54 |
203.71 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.82 |
90.63 |
90.75 |
|
SELLING & ADMINISTRATION |
% |
4.84 |
6.06 |
6.13 |
|
INTEREST |
% |
0.03 |
0.00 |
0.00 |
|
GROSS PROFIT MARGIN |
% |
8.70 |
9.65 |
9.88 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.85 |
3.58 |
3.74 |
|
NET PROFIT MARGIN |
% |
2.93 |
2.49 |
2.60 |
|
RETURN ON EQUITY |
% |
7.35 |
5.32 |
5.17 |
|
RETURN ON ASSET |
% |
5.34 |
4.17 |
4.35 |
|
EARNING PER SHARE |
BAHT |
169.09 |
113.36 |
104.30 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.27 |
0.22 |
0.16 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.38 |
0.28 |
0.19 |
|
TIME INTEREST EARNED |
TIMES |
129.57 |
1,493.45 |
1,651.63 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
26.50 |
13.57 |
|
|
OPERATING PROFIT |
% |
36.07 |
8.64 |
|
|
NET PROFIT |
% |
49.17 |
8.69 |
|
|
FIXED ASSETS |
% |
(3.73) |
0.33 |
|
|
TOTAL ASSETS |
% |
16.49 |
13.42 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 26.5%. Turnover has increased from THB 182,453,286.82
in 2011 to THB 230,801,631.43 in 2012. While net profit has increased from THB
4,534,269.94 in 2011 to THB 6,763,772.94 in 2012. And total assets has
increased from THB 108,745,006.37 in 2011 to THB 126,679,731.19 in 2012.
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.70 |
Deteriorated |
Industrial
Average |
24.08 |
|
Net Profit Margin |
2.93 |
Impressive |
Industrial
Average |
2.06 |
|
Return on Assets |
5.34 |
Impressive |
Industrial
Average |
5.28 |
|
Return on Equity |
7.35 |
Acceptable |
Industrial
Average |
11.96 |
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 8.7%. When compared with
the industry average, the ratio of the company was lower. This indicated that
company may have problems with control over its costs.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company's figure is 2.93%,
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 5.34%, 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. When compared with the
industry average, it was lower, the company's figure is 7.35%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
26.42 |
Impressive |
Industrial
Average |
1.63 |
|
Quick Ratio |
7.30 |
|
|
|
|
Cash Conversion Cycle |
181.01 |
|
|
|
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 26.42 times in 2012, increased from 11.24 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 7.3 times in 2012,
increased from 2.64 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 182 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.27 |
Impressive |
Industrial
Average |
0.58 |
|
Debt to Equity Ratio |
0.38 |
Impressive |
Industrial
Average |
1.33 |
|
Times Interest Earned |
129.57 |
Impressive |
Industrial
Average |
0.85 |
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 129.57 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 0.27 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 Downtrend
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
31.20 |
Impressive |
Industrial
Average |
1.46 |
|
Total Assets Turnover |
1.82 |
Acceptable |
Industrial
Average |
2.53 |
|
Inventory Conversion Period |
136.21 |
|
|
|
|
Inventory Turnover |
2.68 |
Deteriorated |
Industrial
Average |
7.40 |
|
Receivables Conversion Period |
45.17 |
|
|
|
|
Receivables Turnover |
8.08 |
Impressive |
Industrial
Average |
4.53 |
|
Payables Conversion Period |
0.37 |
|
|
|
The company's Account Receivable Ratio is calculated as 8.08 and 10.04
in 2012 and 2011 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate revenue. A lower ratio may indicate
over extension and collection problems. Conversely, a higher ratio may indicate
an overtly stringent policy. In this case, the company's A/R ratio in 2012
decreased from 2011. 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 151 days at the
end of 2011 to 136 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 2.42 times in year 2011 to 2.68 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.82 times and 1.68
times in 2012 and 2011 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.80 |
|
|
1 |
Rs.91.95 |
|
Euro |
1 |
Rs.80.36 |
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.