MIRA INFORM REPORT
|
Report Date : |
23.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
KRUNGTHAI FEEDMILL PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
312 Rama
2 Road, Bangmod,
Jomthong, Bangkok 10150 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
26.09.1978 |
|
|
|
|
Com. Reg. No.: |
0107537001463 |
|
|
|
|
Legal Form : |
Public
Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and distributing various
kinds of animal
feed for poultry,
swine, aquatic and
pet farms. |
|
|
|
|
No. of Employees : |
960 |
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 crisis 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
SUMMARY
BUSINESS
ADDRESS : 312
RAMA 2 ROAD, BANGMOD, JOMTHONG,
BANGKOK 10150,
THAILAND
TELEPHONE : [66] 2473-8000
FAX :
[66] 2473-8380-1
E-MAIL
ADDRESS : suthichoke-ngam@gfpt.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1978
REGISTRATION
NO. : 0107537001463
TAX
ID NO. : 3101151763
CAPITAL REGISTERED : BHT. 400,000,000
CAPITAL PAID-UP : BHT.
400,000,000
SHAREHOLDER’S PROPORTION : THAI :
99.97%
FOREIGN :
0.03%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
VIRACH SIRIMONGKOLKASEM, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 960
LINES
OF BUSINESS : ANIMAL FEED
MANUFACTURER AND
DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was initially
established on September 26, 1978
as a private
limited company under
the registered name “Krungthai Feedmill
Co., Ltd.”, by
Thai groups, with the
business objective to manufacture and distribute animal feed to local
market. On November 11, 1988,
the subject was
listed on the
Stock Exchange of
Thailand, then its
status was converted
to a public
limited company under
the name KRUNGTHAI
FEEDMILL PUBLIC COMPANY
LIMITED on May 10, 1994.
It currently employs
960 staff. The
subject is a
subsidiary of GFPT
Public Company Limited,
which is the
parent company of
the GFPT group
of companies.
On August 31,
1998, the subject
was delisted from
the Stock Exchange
of Thailand.
The subject’s registered
address was initially
at 69/6-13 Moo
5, Suksawad Rd.,
Ratchaburana, Bangkok.
Later,
subject’s registered address
was relocated to
118 Moo 4,
Rama 2 Rd.,
Bangmod, Jomthong, Bangkok
10150.
In
2011, its registration
address was changed
to 312 Rama
2 Rd., Bangmod,
Jomthong, Bangkok 10150,
by the Jomthong
District Office, but
both are the
same location, and
this is the
company’s current operation address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality
|
Age
|
|
|
|
|
|
|
Mr. Prasit Sirimongkolkasem |
[x] |
Thai
|
72 |
|
Mr. Virach Sirimongkolkasem |
[x] |
Thai |
63 |
|
Mrs. Somsiri Ingpochai |
[x] |
Thai |
65 |
|
Mr. Anan Sirimongkolkasem |
[x] |
Thai |
61 |
|
Mrs. Pranee Parksook |
|
Thai |
59 |
AUTHORIZED PERSON
Two of the
mentioned directors [x]
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Virach Sirimongkolkasem is
the Managing Director.
He is Thai
nationality with the
age of 63
years old.
Mr. Anan Sirimongkolkasem is
the Deputy Managing
Director.
He is Thai
nationality with the
age of 61
years old.
Mr. Prachak Teerakulpisuth is
the Deputy Managing
Director.
He is Thai
nationality.
Mr. Suchin Sirimongkolkasem is
the Marketing Director.
He is Thai
nationality.
Mr. Sompong Haran-uthaikij is
the Marketing Manager.
He is Thai
nationality.
Mr. Sinchai Teerawattanakul is
the Sales Manager.
He is Thai
nationality.
Mr. Khomsa Promnophap
is the Factory
Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing and distributing
various kinds of
animal feed for
poultry, swine, aquatic
and pet farms.
Range of the
products and brands
are as follows:
Product Brand
Poultry feed “P.
CHAROENPHAND”, “KT”, “GF”,
“TOP-MIX”
Fish feed “P.
CHAROENPHAND”, “KT”, “GF”,
“PC”, “AQUA”
“ATTRACT”, “JACKPOT”,
“SUPERMIX”
Frog feed “FROG”, “HI-FROG”
Shrimp feed “GF”, “P. CHAROENPHAND”, “POPWER P”,
“TOP-MIX”
Swine feed “KT”, “P. CHAROENPHAND”
Duck feed “P.
CHAROENPHAND”, “KT”
Quail feed “P.
CHAROENPHAND”, “KT”
Dairy cow/Beef
cattle “KT”
Goat feed “P.
CHAROENPHAND”, “KT”
Dog feed “K-9”
The subject
is also importing
and distributing of
layer chicken breed
with 1 day
and 17 weeks
ages, under the
breed name “BOVANS BROWN”,
as well as
meat chicken breed
with 1 day
ages, under the
breed name “COBB”.
PRODUCTION
1,111,000 tons per
year
PURCHASE
Raw materials such as
corn, soybean tailings,
fish meal, feed
supplement and etc., are purchased
from both local
and overseas suppliers
in Australia, New Zealand,
United States of
America, Germany, France,
India, Brazil, Argentina,
Republic of China,
Taiwan, Laos and
Myanmar.
MAJOR SUPPLIERS
GFPT Public Company Limited
: Thailand
Public Warehouse Organization, Ministry of Commerce Thailand : Thailand
SALES [LOCAL]
80% of the
products is sold
locally to the
GFPT group of
companies, and the
remaining 20% is
to general customers.
MAJOR CUSTOMERS
Krung Thai Farm
Co., Ltd. : Thailand
M.K.S. Farm Co.,
Ltd. : Thailand
GP Breeding Co.,
Ltd. : Thailand
PARENT COMPANY
GFPT Public Company
Limited
SUBSIDIARY/AFFILIATED
COMPANIES
M.K.S. Farm Co.,
Ltd.
Business Type :
Farm business
Krungthai Farm Co.,
Ltd.
Business Type :
Farm business
LITIGATION
Bankruptcy and Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the
subject found at
Legal Execution Department
for the past
five years.
Others
There are no
legal suits filed
against the subject
for the past
two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T.
BANKING
Bangkok Bank Public Co.,
Ltd.
Head office, 333
Silom Rd., Silom,
Bangrak, Bangkok 10500]
Kasikornbank Public Co.,
Ltd.
[Head office, 1
Kasikorn Lane, Ratburana
Rd., Ratburana, Bangkok
10140]
[Nongprue branch, 291
Moo 2, Banbueng-Klaeng Rd.,
T.Nongphaikaew, A. Banbueng,
Chonburi 20220]
The Siam Commercial
Bank Public Co.,
Ltd.
[Samutprakarn branch, 211 Taiban Rd.,
T. Paknam, A. Muang, Samutprakarn
10280]
EMPLOYMENT
The subject
currently employs 960
staff. [office, sales
staff and factory
workers]
LOCATION DETAILS
The premise is
owned for operating
administrative office at the heading
address. It is located
in commercial/residential area.
Factory I
: 266 Moo 11,
Soi Sor. Thaiseree
2, T. Naiklongbangplakod, A. Phrasamutjaedee,
Samutprakarn 10290. Tel.:
[66] 2425-8003 Fax:
[66] 2425-8001.
Factory II : 135/2 Moo 4, T.
Klongkiw, A. Banbung, Chonburi
20220.
Tel.:
[66] 38 442-700,
Fax: [66] 38
442-788.
There are 7 branches and sales
office located in
provincial:
Nakornratchasima,
Suratthani, Songkhla, Chantaburi,
Trang, Lamphun and
Pang-nga province.
COMMENT
The
company was formed
in 1978 as a
manufacturer and distributor
of animal feed
products. Demand of animal
feed has gradually
increased since Thailand
is the major country in the region that export
poultry products to world market.
Local consumption of animal feeds has significantly increased.
Subject posted its excellent business
performance in 2012.
Subject is considered
to have a
solid business.
FINANCIAL INFORMATION
The capital was
registered at Bht.
20,000,000 divided into
200,000 shares of
Bht. 100 each.
The capital was
increased later as
followings:
Bht. 50,000,000
on June 2,
1981
Bht. 60,000,000
on March 12,
1982
Bht. 70,000,000
on June 1,
1985
Bht. 100,000,000
on October 30,
1984
Bht. 200,000,000
on August 2,
1988
Bht. 300,000,000
on July 7,
1989
The latest registered
capital was increased
to Bht. 400,000,000
divided into 40,000,000
shares of Bht.
10 each with
fully paid.
MAIN SHAREHOLDERS : [as at
April 5, 2013]
|
NAME |
HOLDING
|
% |
|
|
|
|
|
GFPT Public Company
Limited Nationality: Thai Address : 312
Rama 2 Rd.,
Bangmod,
Jomthong, Bangkok 10150 |
39,132,472 |
97.83 |
Others
|
867,528 |
2.17 |
Total Shareholders : 352
Share Structure [as
at April 5,
2013]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
344 |
39,986,100 |
99.97 |
|
Foreign |
8 |
13,900 |
0.03 |
|
Total |
352 |
40,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Wanya Puthasathien No.
4387
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
93,502,248.40 |
70,977,359.34 |
41,521,823.30 |
|
Trade Accounts, Notes &
Other
Receivable |
1,933,025,485.38 |
1,308,612,001.09 |
307,768,908.82 |
|
Receivable - Related Company |
- |
- |
518,507,489.10 |
|
Inventories |
3,069,761,248.32 |
1,879,754,225.40 |
1,556,364,876.29 |
|
Other Current Assets
|
4,246,243.09 |
2,530,054.70 |
10,735,492.89 |
|
|
|
|
|
|
Total Current Assets
|
5,100,535,225.19 |
3,261,873,640.53 |
2,434,898,590.40 |
|
Other Long-term Investment |
5,000.00 |
5,000.00 |
5,000.00 |
|
Poultry Breeder |
58,410,409.95 |
60,876,360.95 |
59,435,082.95 |
|
Real Estate for
Investment |
21,043,817.74 |
17,450,753.90 |
17,904,056.20 |
|
Land & Building Non
Operation |
1,494,491,864.84 |
1,383,919,141.91 |
1,202,326,609.70 |
|
Other Non-current Assets
|
30,332,431.24 |
20,860,282.72 |
5,985,257.13 |
|
Total Assets |
6,704,818,748.96 |
4,744,985,180.01 |
3,720,554,596.38 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
1,810,989,975.49 |
486,223,163.49 |
139,481,861.37 |
|
Trade Accounts, Notes &
Other Payable |
661,926,164.39 |
384,629,409.10 |
274,089,155.66 |
|
Payable - Related Company |
- |
- |
5,172,096.80 |
|
Current Portion of Long-term Liabilities |
- |
- |
63,160,000.00 |
|
Accrued Expenses |
- |
- |
34,047,160.48 |
|
Accrued Income Tax |
- |
19,685,477.43 |
17,538,540.59 |
|
Estimated Short-term Liabilities |
9,606,300.00 |
12,005,600.00 |
- |
|
Other Current Liabilities |
- |
- |
14,742,121.99 |
|
|
|
|
|
|
Total Current Liabilities |
2,482,522,439.88 |
902,543,650.02 |
548,230,936.89 |
|
Long-term Loan from Related
Person |
978,400,000.00 |
978,400,000.00 |
976,500,000.00 |
|
Long-term Loan from Financial Institution |
- |
- |
94,730,000.00 |
|
Employee Benefit Obligation |
92,668,765.94 |
87,335,409.00 |
- |
|
Other Liabilities |
2,271,617.00 |
248,367.00 |
- |
|
Total Liabilities |
3,555,862,822.82 |
1,968,527,426.02 |
1,619,460,936.89 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
value authorized, issued
and fully paid share
capital 40,000,000 shares |
400,000,000.00 |
400,000,000.00 |
400,000,000.00 |
|
|
|
|
|
|
Capital Paid |
400,000,000.00 |
400,000,000.00 |
400,000,000.00 |
|
Premium on Share
Capital |
50,000,000.00 |
50,000,000.00 |
50,000,000.00 |
|
Retained Earning Appropriated Statutory
Reserve |
40,000,000.00 |
40,000,000.00 |
40,000,000.00 |
|
Unappropriated |
2,658,955,926.14 |
2,286,457,753.99 |
1,611,093,659.49 |
|
Total Shareholders' Equity |
3,148,955,926.14 |
2,776,457,753.99 |
2,101,093,659.49 |
|
Total Liabilities & Shareholders' Equity |
6,704,818,748.96 |
4,744,985,180.01 |
3,720,554,596.38 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
11,390,683,497.47 |
10,473,880,140.20 |
9,101,177,337.86 |
|
Other Income |
90,044,159.77 |
65,260,939.36 |
76,171,680.68 |
|
Total Revenues |
11,480,727,657.24 |
10,539,141,079.56 |
9,177,349,018.54 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
10,622,107,499.83 |
9,128,938,058.58 |
7,815,179,576.41 |
|
Selling Expenses |
248,238,602.34 |
230,993,706.16 |
138,468,227.83 |
|
Administrative Expenses |
176,785,578.75 |
175,630,572.15 |
222,499,783.23 |
|
Directors’ Remuneration |
- |
- |
15,480,469.00 |
|
Total Expenses |
11,047,131,680.92 |
9,535,562,336.89 |
8,191,628,056.47 |
|
|
|
|
|
|
Profit before Financial
Cost & Income Tax |
433,595,976.32 |
1,003,578,742.67 |
985,720,967.07 |
|
Financial Cost |
[61,097,804.17] |
[63,970,349.97] |
[73,145,554.53] |
|
|
|
|
|
|
Profit before Income Tax |
372,498,172.15 |
939,608,392.70 |
912,575,407.54 |
|
Income Tax |
- |
[43,208,366.20] |
[44,685,795.58] |
|
Net Profit / [Loss] |
372,498,172.15 |
896,400,026.50 |
867,889,611.96 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.05 |
3.61 |
4.44 |
|
QUICK RATIO |
TIMES |
0.82 |
1.53 |
1.58 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.62 |
7.57 |
7.57 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.70 |
2.21 |
2.45 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
105.48 |
75.16 |
72.69 |
|
INVENTORY TURNOVER |
TIMES |
3.46 |
4.86 |
5.02 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
61.94 |
45.60 |
12.34 |
|
RECEIVABLES TURNOVER |
TIMES |
5.89 |
8.00 |
29.57 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
22.75 |
15.38 |
12.80 |
|
CASH CONVERSION CYCLE |
DAYS |
144.68 |
105.38 |
72.23 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
93.25 |
87.16 |
85.87 |
|
SELLING & ADMINISTRATION |
% |
3.73 |
3.88 |
3.97 |
|
INTEREST |
% |
0.54 |
0.61 |
0.80 |
|
GROSS PROFIT MARGIN |
% |
7.54 |
13.46 |
14.97 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.81 |
9.58 |
10.83 |
|
NET PROFIT MARGIN |
% |
3.27 |
8.56 |
9.54 |
|
RETURN ON EQUITY |
% |
11.83 |
32.29 |
41.31 |
|
RETURN ON ASSET |
% |
5.56 |
18.89 |
23.33 |
|
EARNING PER SHARE |
BAHT |
9.31 |
22.41 |
21.70 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.53 |
0.41 |
0.44 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.13 |
0.71 |
0.77 |
|
TIME INTEREST EARNED |
TIMES |
7.10 |
15.69 |
13.48 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
8.75 |
15.08 |
|
|
OPERATING PROFIT |
% |
(56.80) |
1.81 |
|
|
NET PROFIT |
% |
(58.45) |
3.29 |
|
|
FIXED ASSETS |
% |
7.99 |
15.10 |
|
|
TOTAL ASSETS |
% |
41.30 |
27.53 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 8.75%. Turnover has increased from THB
10,473,880,140.20 in 2011 to THB 11,390,683,497.47 in 2012. While net profit
has decreased from THB 896,400,026.50 in 2011 to THB 372,498,172.15 in 2012.
And total assets has increased from THB 4,744,985,180.01 in 2011 to THB
6,704,818,748.96 in 2012.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
7.54 |
Acceptable |
Industrial
Average |
14.96 |
|
Net Profit Margin |
3.27 |
Impressive |
Industrial
Average |
2.78 |
|
Return on Assets |
5.56 |
Impressive |
Industrial
Average |
3.96 |
|
Return on Equity |
11.83 |
Impressive |
Industrial
Average |
8.42 |
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 7.54%. 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 3.27%,
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 5.56%, 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.
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 11.83%, 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 :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
2.05 |
Impressive |
Industrial
Average |
1.77 |
|
Quick Ratio |
0.82 |
|
|
|
|
Cash Conversion Cycle |
144.68 |
|
|
|
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 2.05 times in 2012, decreased from 3.61 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 0.82 times in 2012,
decreased from 1.53 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 145 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.53 |
Acceptable |
Industrial
Average |
0.47 |
|
Debt to Equity Ratio |
1.13 |
Risky |
Industrial
Average |
0.88 |
|
Times Interest Earned |
7.10 |
Impressive |
Industrial
Average |
- |
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 7.1 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 0.53 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 Downtrend
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
7.62 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.70 |
Impressive |
Industrial
Average |
1.42 |
|
Inventory
Conversion Period |
105.48 |
|
|
|
|
Inventory Turnover |
3.46 |
Acceptable |
Industrial
Average |
5.74 |
|
Receivables Conversion Period |
61.94 |
|
|
|
|
Receivables Turnover |
5.89 |
Impressive |
Industrial
Average |
2.69 |
|
Payables
Conversion Period |
22.75 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.89 and 8.00 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 increased from 75 days at the
end of 2011 to 105 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 4.86 times in year 2011 to 3.46 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.7 times and 2.21
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 Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 65.42 |
|
|
1 |
Rs. 102.10 |
|
Euro |
1 |
Rs. 87.32 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.