MIRA
INFORM REPORT
|
Report Date : |
28.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
JOTUN
THAILAND LIMITED |
|
|
|
|
Registered Office : |
700/353 Moo 6,
Amata City Industrial Estate,
[Bip Ii], T. Donhuaroh, A.
Muang,Chonburi 20000 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
21.08.1967 |
|
|
|
|
Com. Reg. No.: |
0105510003790 [Former : 440/2510] |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, distributor and exporter of industrial paints & related products such as Decorative Paints, Marine & Industrial Coatings, Protective Coatings |
|
|
|
|
No. of Employees : |
360 |
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
JOTUN THAILAND LIMITED
SUMMARY
BUSINESS
ADDRESS : 700/353
MOO 6, AMATA CITY INDUSTRIAL
ESTATE,
[BIP II],
T. DONHUAROH, A.
MUANG,
CHONBURI 20000,
THAILAND
TELEPHONE : [66] 38 214-824-6
FAX : [66] 38
214-373-4
E-MAIL
ADDRESS : nittaya.sae-liew@jotun.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1967
REGISTRATION
NO. : 0105510003790 [Former : 440/2510]
TAX
ID NO. : 3101007145
CAPITAL REGISTERED : BHT. 84,000,000
CAPITAL PAID-UP : BHT.
84,000,000
SHAREHOLDER’S PROPORTION : NORWEGIAN : 100%
FISCAL YEAR CLOSING DATE : DECEMBER
31
LEGAL
STATUS : PRIVATE
LIMITED COMPANY
EXECUTIVE : MR.
GUNNAR THORESEN, NORWEGIAN
MANAGING DIRECTOR
NO.
OF STAFF : 360
LINES
OF BUSINESS : INDUSTRIAL
PAINTS
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
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 August
21, 1967 as
a private limited
company under the name
style JOTUN THAILAND
LIMITED, by Norwegian
groups, with the
business objective to
manufacture and distribute
wide range of industrial
paints to both
domestic and overseas
markets. It was
granted a promotional privilege from the
Board of Investment
[BOI] for the
production. The subject
is a subsidiary
of Jotun A/S,
Norway. It currently
employs approximately 360
staff.
The subject received
ISO 9002 certificate
from BVQI in 1996.
It is the
first paint and
powder coatings company
in Thailand to
receive the ISO 14001
certification from the
Thailand Environmental Institute
[TEI].
The
subject’s registered address
is 700/353 Moo 6,
Amata City Industrial
Estate,
[BIP
II], T. Donhuaroh,
A. Muang, Chonburi 20000,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Teerajitt Stirotamawongse |
|
Thai |
72 |
|
Mr. Pornchai Puangsuwan |
|
Thai |
51 |
|
Mr. Erik Reinholt
Aaberg |
|
Norwegian |
61 |
|
Mr. Peder Bohlin |
|
Norwegian |
61 |
|
Mr. Gunnar Thoresen |
[x] |
Norwegian |
62 |
AUTHORIZED PERSON
The mentioned director
[x] signs on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Gunnar Thoresen
is the Managing
Director.
He is Norwegian
nationality with the
age of 62
years old.
Mr. Natthasorn Siangsuebchart is
the Sales & Marketing
Manager.
He is Thai
nationality.
Mr. Somchai Kaewson is
the Financial Manager.
He is Thai
nationality.
Mr. Bottawadi Na
Chiengmai is the
Human Resource Manager.
He is Thai
nationality.
Ms. Sujitra Kosawanna is
the Factory Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activities
are manufacturer, exporter
and distributor of
industrial paints and
related products as
the followings:
·
DECORATIVE
PAINTS
STRAX, plastic emulsion
paint
JOTAPLAST, interior plastic
emulsion paint
PIONEER,
Chlorinatie rubber-based fungicidal
paint for use
on plaster and
concrete
GARDE ENAMEL, enamel
based on an
alkyd resin
CIRO, Pliotite-based clear
primer/sealer
JOTUN VARNISH, Clear
varnish based on
a polyurethane vehicle
·
MARINE
AND INDUSTRIAL COATINGS
PILOT, conventional paints,
including primers, intermediate
coats and topcoats.
PIONEER, coatings
TANKGUARD, an intermediate
coat and finish
coat
SECURIT/BARRIER, Two-pack zine-rich
primers based on
epoxy / polyamide binder
POLYGUARD, Albino coat-tar
epoxy coating supplied in
various colours
ANTIFOULINGS, marine product
STRONGCOAT/RESIST HB, Inorganic
zinc silicate coatings
CTE 82/JOTAGUARD, Two-pack
high-build coal-tar epoxy
coatings
·
PROTECTIVE
COATINGS
PRODUCTION
30 million litres
per annum
PURCHASE
50% of raw
materials and spare
parts are imported from
Republic of China, Japan, Germany, Taiwan, Netherlands, Norway
and United Kingdom, and the remaining 50% is
purchased locally.
MAJOR SUPPLIERS
Jotun A/S : Norway
IRPC Public Company
Limited : Thailand
Lenso Corporation Public
Company Limited :
Thailand
Mitsui & Co., Ltd. : Japan
SALES [LOCAL]
90% of the
products is sold
locally to contractors
and dealers with
over 400 dealers
in Bangkok and
provincial.
EXPORT [COUNTRY]
10% of the
products is exported
to Singapore, Myanmar,
Brunei, India, Laos,
Vietnam, Middle East,
Indonesia, Philippines, Hong Kong,
Cambodia and Malaysia.
SUBSIDIARIES & AFFILIATED
COMPANY
Jotun Powder Coating
[Thailand] Co., Ltd.
Business Type: Manufacturer
of powder coating
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 of
30-60-90 days.
Local bills are
paid by cash
or on the
credits of 30-60-90
days.
Imports are by
L/C at sight
or on the
credits term of
90-120 days or
T/T.
Exports are against
T/T.
BANKING
The Siam Commercial
Bank Public Co., Ltd.
[Head Office
: 9 Ratchadapisek Rd.,
Ladyao, Jatujak, Bangkok 10900]
Hongkong & Shanghai
Banking Corporation
[Bangkok Office :
968 Rama 4 Rd., Bangrak,
Bangkok 10500]
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
approximately 360 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is owned
for administrative office
& factory at
the heading address. Premise is
located in an
industrial area.
BRANCHES & SALES
OFFICE
· 49/26, 28, 30, 32,
34, 36, 38, 40 Moo 12,
Kingkaew Road, T. Rajatheva,
A. Bangplee, Samutprakarn 10540, Thailand. Tel.: [66] 2750-3355, Fax.: [66] 2750-3344.
COMMENT
Jotun Thailand Limited was established 40 years ago as the first international
paint company to invest in
Thailand as a
BIO promoted project. Jotun in
Thailand has been
very successful and well
positioned in both paint and
powder industries in
Thailand due to the fact
that it has
invested comprehensive in improving
local competence.
Positive signs of paint
industry have returned since
2011, with overall sales growth
for Jotun paints was
around 20% in 2012.
At present, Jotun ranks among the
top five decorative paint companies in Thailand. It also exports to
Cambodia, Myanmar, Laos and
Vietnam, in which
they are expanding
their construction industry.
FINANCIAL INFORMATION
The registered
capitalization was at
Bht. 4,500,000 divided
into 4,500 shares
of Bht. 1,000
each.
The capital was
increased later as
followings :
Bht. 14,000,000
on November 28,
1984
Bht. 84,000,000
on January 16,
1998
The latest registered
capital was increased
to Bht. 84,000,000 divided
into 84,000 shares
of Bht. 1,000
each with fully
paid.
THE SHAREHOLDERS LISTED
WERE : [as
at March 18, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Jotun A/S Nationality : Norwegian Address : Norway |
80,190 |
95.46 |
|
Mr. Bjorn Granerod
Nationality : Norwegian Address : Norway |
3,000 |
3.57 |
|
Mr. Tor Traham Nationality : Norwegian Address : Norway |
810 |
0.97 |
Total Shareholders : 3
Share Structure [as
at March 18,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign - Norwegian |
3 |
84,000 |
100.00 |
|
Total |
3 |
84,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.:
Ms. Siriwan Surathepin No.
4604
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 |
59,956,200 |
22,870,866 |
51,255,346 |
|
Trade Account & Other Receivable |
686,491,210 |
615,016,280 |
511,747,400 |
|
Inventories |
222,345,589 |
339,903,136 |
210,558,458 |
|
Other Receivable |
- |
- |
1,978,382 |
|
Other Current Assets
|
7,394,815 |
3,858,076 |
4,678,006 |
|
|
|
|
|
|
Total Current Assets
|
976,187,814 |
981,648,358 |
780,217,592 |
|
|
|
|
|
|
Trade Account Receivable - Net of
Current Portion |
26,505,764 |
19,819,412 |
21,109,907 |
|
Fixed Assets |
329,352,259 |
369,451,736 |
411,884,795 |
|
Intangible Assets |
44,804,734 |
50,232,098 |
4,904,249 |
|
Deposit |
4,071,558 |
3,672,760 |
4,036,560 |
|
Total Assets |
1,380,922,129 |
1,424,824,364 |
1,222,153,103 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Short-term Loan from Financial Institution |
- |
150,000,000 |
60,000,000 |
|
Trade Account & Other
Payable |
359,528,708 |
442,486,863 |
259,975,744 |
|
Other Payable -
Related Company |
- |
- |
21,721,301 |
|
Short-term Loan from Related Company |
- |
- |
70,000,000 |
|
Current Portion of
Long-term Loan From Related Company |
75,000,000 |
50,000,000 |
- |
|
Short-term Estimated Liabilities |
- |
- |
15,954,978 |
|
Accrued Income Tax |
39,530,365 |
11,294,919 |
9,010,701 |
|
Accrued Expenses |
- |
- |
61,275,274 |
|
Other Current Liabilities |
98,619,953 |
73,843,207 |
32,024,423 |
|
|
|
|
|
|
Total Current Liabilities |
572,679,026 |
727,624,989 |
529,962,421 |
|
Long-term Loan, Net of
Current Portion |
75,000,000 |
150,000,000 |
200,000,000 |
|
Reserve for Employees’
Benefit |
41,957,364 |
38,955,560 |
36,475,368 |
|
Total Liabilities |
689,636,390 |
916,580,549 |
766,437,789 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 84,000 shares |
84,000,000 |
84,000,000 |
84,000,000 |
|
|
|
|
|
|
Capital Paid |
84,000,000 |
84,000,000 |
84,000,000 |
|
Premium on Share Capital |
1,250,000 |
1,250,000 |
1,250,000 |
|
Retained Earning Appropriated for
Statutory Reserve |
7,150,000 |
7,150,000 |
7,150,000 |
|
Unappropriated |
598,885,739 |
415,843,815 |
363,315,314 |
|
Total Shareholders' Equity |
691,285,739 |
508,243,815 |
455,715,314 |
|
Total Liabilities & Shareholders' Equity |
1,380,922,129 |
1,424,824,364 |
1,222,153,103 |
PROFIT &
LOSS ACCOUNT
|
Sales |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
2,595,649,345 |
2,195,340,992 |
1,998,674,227 |
|
Rental & Service Income |
- |
- |
10,321,191 |
|
Gain on Exchange
Rate |
8,763,838 |
- |
11,523,744 |
|
Reversal of Goods
Warranty Expenses |
- |
- |
8,701,314 |
|
Others Income |
51,519,079 |
46,968,611 |
31,345,234 |
|
Total Saless |
2,655,932,292 |
2,242,309,603 |
2,060,565,710 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,663,352,924 |
1,490,608,503 |
1,331,592,284 |
|
Selling Expenses |
439,569,742 |
400,304,563 |
395,039,273 |
|
Administrative Expenses |
297,686,958 |
259,604,419 |
225,721,152 |
|
Total Expenses |
2,400,609,624 |
2,150,517,485 |
1,952,352,709 |
|
|
|
|
|
|
Profit before Financial Cost
& Income Tax |
255,322,668 |
91,792,118 |
108,213,001 |
|
Financial Cost |
[12,541,370] |
[12,854,825] |
[7,992,248] |
|
Profit before Income Tax |
242,781,298 |
78,937,293 |
100,220,753 |
|
Income Tax |
[59,739,374] |
[26,408,792] |
[29,189,759] |
|
|
|
|
|
|
Net Profit / [Loss] |
183,041,924 |
52,528,501 |
71,030,994 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.70 |
1.35 |
1.47 |
|
QUICK RATIO |
TIMES |
1.30 |
0.88 |
1.07 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.88 |
5.94 |
4.88 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.88 |
1.54 |
1.64 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
48.79 |
83.23 |
57.72 |
|
INVENTORY TURNOVER |
TIMES |
7.48 |
4.39 |
6.32 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
96.53 |
102.25 |
92.98 |
|
RECEIVABLES TURNOVER |
TIMES |
3.78 |
3.57 |
3.93 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
78.89 |
108.35 |
71.26 |
|
CASH CONVERSION CYCLE |
DAYS |
66.43 |
77.13 |
79.43 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
64.08 |
67.90 |
66.28 |
|
SELLING & ADMINISTRATION |
% |
28.40 |
30.06 |
30.90 |
|
INTEREST |
% |
0.48 |
0.59 |
0.40 |
|
GROSS PROFIT MARGIN |
% |
38.24 |
34.24 |
36.29 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
9.84 |
4.18 |
5.39 |
|
NET PROFIT MARGIN |
% |
7.05 |
2.39 |
3.54 |
|
RETURN ON EQUITY |
% |
26.48 |
10.34 |
15.59 |
|
RETURN ON ASSET |
% |
13.26 |
3.69 |
5.81 |
|
EARNING PER SHARE |
BAHT |
2,179.07 |
625.34 |
845.61 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.50 |
0.64 |
0.63 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.00 |
1.80 |
1.68 |
|
TIME INTEREST EARNED |
TIMES |
20.36 |
7.14 |
13.54 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
18.23 |
9.28 |
|
|
OPERATING PROFIT |
% |
178.15 |
(15.17) |
|
|
NET PROFIT |
% |
248.46 |
(26.05) |
|
|
FIXED ASSETS |
% |
(10.85) |
(10.30) |
|
|
TOTAL ASSETS |
% |
(3.08) |
16.58 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 18.23%. Turnover has increased from THB
2,195,340,992.00 in 2011 to THB 2,595,649,345.00 in 2012. While net profit has increased
from THB 52,528,501.00 in 2011 to THB 183,041,924.00 in 2012. And total assets
has decreased from THB 1,424,824,364.00 in 2011 to THB 1,380,922,129.00 in
2012.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
38.24 |
Acceptable |
Industrial Average |
65.90 |
|
Net Profit Margin |
7.05 |
Impressive |
Industrial Average |
3.84 |
|
Return on Assets |
13.26 |
Impressive |
Industrial Average |
4.93 |
|
Return on Equity |
26.48 |
Impressive |
Industrial Average |
10.12 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from saless 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 38.24%. 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 7.05%, 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
13.26%, 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 26.48%, 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 |
1.70 |
Impressive |
Industrial Average |
1.66 |
|
Quick Ratio |
1.30 |
|
|
|
|
Cash Conversion Cycle |
66.43 |
|
|
|
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 1.7 times in 2012, increased from 1.35 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 1.3 times in 2012,
increased from 0.88 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 67 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.50 |
Impressive |
Industrial Average |
0.50 |
|
Debt to Equity Ratio |
1.00 |
Impressive |
Industrial Average |
0.99 |
|
Times Interest Earned |
20.36 |
Impressive |
Industrial Average |
2.03 |
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 20.36 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 0.5, 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
7.88 |
Impressive |
Industrial Average |
0.71 |
|
Total Assets Turnover |
1.88 |
Impressive |
Industrial Average |
1.27 |
|
Inventory Conversion Period |
48.79 |
|
|
|
|
Inventory Turnover |
7.48 |
Impressive |
Industrial Average |
4.82 |
|
Receivables Conversion Period |
96.53 |
|
|
|
|
Receivables Turnover |
3.78 |
Impressive |
Industrial Average |
2.67 |
|
Payables Conversion Period |
78.89 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.78 and 3.57 in
2012 and 2011 respectively. This ratio measures the efficiency of the company in
managing its trade debtors to generate sales. 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
increased from 2011. 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 83 days at the
end of 2011 to 49 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 4.39 times in year 2011 to 7.48 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.88 times and 1.54
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.65.67 |
|
UK Pound |
1 |
Rs.102.20 |
|
Euro |
1 |
Rs.87.75 |
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.