MIRA INFORM REPORT
|
Report Date : |
17.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
QUALITY
MINERALS PUBLIC COMPANY
LIMITED |
|
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|
|
Registered Office : |
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|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
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|
Date of Incorporation : |
09.11.1995 |
|
|
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|
Com. Reg. No.: |
0107547000770 [Former :
0107574700774] |
|
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|
Legal Form : |
Public Limited Company |
|
|
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|
Line of Business : |
· manufacturer of full range of plastic chemicals. Subject products
and brands are
“Q-MIN” ground calcium carbonates,
“Q-PLAS” calcium master batch, “Q-PLAS” white titanium
dioxide master batch
and “Q-PLAS EW”
polyethylene wax. Its
products are used
for industrial applications, basically fillers,
such as ink for paper printing, paints, electrical
parts, automotive parts, pharmaceuticals, packaging & injection parts
|
|
|
|
|
No. of Employees : |
200 |
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 |
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|
|
Payment Behaviour : |
No Complaints |
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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 – September 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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
QUALITY MINERALS PUBLIC
COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 9/13-17 YARNPHAHOLYOTHIN ROAD,
CHATUCHAK, BANGKOK
10900
TELEPHONE : [66] 2618-4700
FAX :
[66] 2618-4701
E-MAIL
ADDRESS : mungkorn@qmin.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1995
REGISTRATION
NO. : 0107547000770 [Former
: 0107574700774]
TAX
ID NO. : 3011651865
CAPITAL REGISTERED : BHT. 365,750,000
CAPITAL PAID-UP : BHT.
267,750,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. MUNGKORN KRIENGWATANA, THAI
PRESIDENT
NO.
OF STAFF : 200
LINES
OF BUSINESS : CALCIUM CARBONATES
AND RELATED PRODUCTS
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 November 9,
1995, as a
private limited company under
the registered name “Quality Minerals
Co., Ltd.”, by Thai groups, in order to manufacture
wide range of
calcium carbonates and
related products with
the promotional privilege
granted by the Board
of Investment [BOI]. The
products are supplied
to both domestic
and international markets.
On August 20, 2004, the subject’s status
was converted to a public
limited company under the
name QUALITY MINERALS PUBLIC COMPANY
LIMITED. It currently
employs approximately 200
staff.
The
subject achieved ISO 9001:2000
certificate from Anglo
Japanese American Registrar
Ltd. [AJA] in 2002.
The
subject’s registered address
is 9/13-17 Yarnphaholyothin Rd.,
Chatuchak, Bangkok 10900, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Mungkorn Kriengwatana |
[x] |
Thai |
60 |
|
Mr. Montri Kriengwatana |
[x] |
Thai |
55 |
|
Mr. Varodom Panyavanich |
[x] |
Thai |
63 |
|
Ms. Busaba Chaivaranont |
[x] |
Thai |
59 |
|
Mr. Pisith Leeartham |
|
Thai |
62 |
|
Mrs. Kalyapas Hongladarompa |
|
Thai |
58 |
|
Mr. Chokedee Boonlong |
|
Thai |
59 |
AUTHORIZED PERSON
Any two of the
mentioned directors [x] can jointly sign on behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Mungkorn Kriengwatana is
the President.
He is Thai
nationality with the
age of 60
years old.
Mr. Veerakiat Nimkittikul is
the Sales Manager.
He is Thai
nationality.
Mr. Seeharach Dangtipramnakul is
the Production Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
full range of plastic
chemicals. Its products
and brands are
“Q-MIN” ground calcium carbonates,
“Q-PLAS” calcium master batch,
“Q-PLAS” white titanium dioxide
master batch and
“Q-PLAS EW” polyethylene
wax. Its products
are used for
industrial applications,
basically fillers, such
as ink for paper printing,
paints, electrical parts, automotive parts, pharmaceuticals, packaging & injection
parts
PRODUCTION
150,000 tons/year
PURCHASE
Raw materials are purchased from suppliers and agents
both domestic and overseas
mainly Germany, Taiwan,
Japan, Republic of
China and Singapore.
MAJOR SUPPLIERS
Chemical Commerce Co., Ltd. : Thailand
Liack Seng Trading
Co., Ltd. : Thailand
Louis T. Leonowen
[Thailand] Co., Ltd. :
Thailand
Ishihara Plastic Industrial
Co., Ltd. : Japan
SALES
80% of the
products is sold
locally by wholesale
to manufacturers and
end-users, the remaining 20% is exported to
Brazil, Germany, Republic of
China, Korea, Australia, India, Taiwan, Bangladesh, Pakistan,
Philippines, Hong Kong,
Indonesia, Vietnam, Myanmar
and etc.
MAJOR CUSTOMERS
TOA Paint [Thailand]
Co., Ltd. :
Thailand
ICI Paints [Thailand]
Co., Ltd. : Thailand
SUBSIDIARY AND AFFILIATED
COMPANIES
Q. M. Invent Co., Ltd. [Former : Q.
M. Ishihara Co.,
Ltd.]
Business Type : Manufacturer
and distributor of plastic parts
Investment : The
subject is holding
52% of the
company’s shares.
Q. M. Bioplast Co., Ltd.
Business Type : Manufacturer
and development of
Bio-plastics
Investment :
The subject is
holding 99.97% of
the company’s shares.
Q. M. Additive Co., Ltd. [Former : Q.
M. Ishihara Co.,
Ltd.]
Business Type : -
Investment :
The subject is
holding 91.65% of
the company’s shares.
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.
Exports are against
T/T.
BANKING
Bank of Ayudhya
Public Co., Ltd.
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately
200 staff comprising
office staff and
factory workers.
LOCATION
DETAILS
The
premise is owned for
administrative office at the
heading address. Premise is
located in commercial/residential area.
Factory I : 31 Moo
12, Saitor Rd.,
T. Koktoom, A. Muang, Lopburi
15210
Tel
: [66] 36
658-333-8 Fax: [66]
36 658-339
COMMENT
Subject
is engaged in producing
of high quality
Ground Calcium Carbonate for
various industries. The products
are served both
domestic industries and export
markets. In 2012,
many industries have
been recovered from
floods which contributed
to business improvement.
Demand
of chemicals has
significantly increased. The subject
reported a strong
sales in 2012,
meanwhile its business
is promising.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 30,000,000 divided
into 300,000 shares
of Bht. 100 each.
The
capital was increased
later as following:
Bht. 125,000,000
on March 15,
1996
Bht. 155,000,000
on November 12,
1997
Bht. 175,000,000
on June 2,
1999
Bht. 223,125,000
on April 5,
2004
Bht. 295,000,000
in 2004
Bht. 353,625,000
on November 29,
2005
Bht. 365,750,000
on February 12,
2007
The
latest registered capital was
increased to Bht. 365,750,000 divided
into 73,150,000 shares of Bht. 5 each,
with the current capital paid-up
at Bht. 267,750,000 or
53,550,000 shares of
Bht. 5 each.
MAIN
SHAREHOLDERS : [as
at April 30,
2013] at Bht.
267,750,000 of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Mungkorn Kriengwatana Nationality: Thai Address : 1486
Moo 2, Sukhumvit Rd.,
Samrongnua, Muang, Samutprakarn |
20,607,408 |
38.48 |
|
Mr. Montri Kriengwatana Nationality: Thai Address : 500
Soi Jasod, Bangna,
Bangkok |
17,782,836 |
33.21 |
|
Kriengwatana Enterprise Co., Ltd. Nationality: Thai Address : :
500 Soi Jasod,
Bangna, Bangkok |
5,649,096 |
10.55 |
|
Bank of Ayudhya
Public Co., Ltd. Nationality: Thai Address : 1222
Rama 3 Rd.,
Bangpongpang, Yannawa,
Bangkok |
4,505,856 |
8.41 |
|
Kriengsuk Co., Ltd. Nationality: Thai Address : 1486
Moo 2, Sukhumvit Rd.,
Samrongnua, Muang, Samutprakarn |
2,824,548 |
5.27 |
|
Mr. Chokedee Boonlong Nationality: Thai Address : 25
Charansanitwong 84 Rd.,
Bang-or,
Bangplad, Bangkok |
1,338,720 |
2.50 |
|
Other Shareholders |
841,536 |
1.58 |
Total Shareholders : 11
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
11 |
53,550,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
11 |
53,550,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Dr. Virach Apimethithamrong No. 1378
BALANCE SHEET [BAHT]
The latest
financial figures published as at December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash & Cash
Equivalents |
1,142,110 |
344,580 |
1,385,526 |
|
Short-term Investment |
11,763,497 |
- |
- |
|
Trade Accounts & Other Receivable |
131,365,387 |
127,718,931 |
102,559,209 |
|
Inventories |
145,444,524 |
181,724,031 |
127,248,946 |
|
Other Current Assets
|
|
|
|
|
Revenue Department Receivable |
12,820,141 |
18,447,497 |
14,198,343 |
|
Others |
550,267 |
2,454,954 |
1,878,750 |
|
|
|
|
|
|
Total Current Assets
|
303,085,926 |
330,689,993 |
247,270,774 |
|
Investment in Subsidiaries |
13,375,920 |
13,375,920 |
13,049,080 |
|
Property, Plant and
Equipment |
370,528,797 |
404,711,050 |
419,197,550 |
|
Intangible Assets |
1,372,501 |
1,563,285 |
1,253,526 |
|
Other Non-current Assets |
466,959 |
465,609 |
738,688 |
|
Total Assets |
688,830,103 |
750,805,857 |
681,509,618 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institutions |
4,545,837 |
13,870,812 |
- |
|
Trade Accounts & Other
Payable |
75,991,526 |
96,607,180 |
89,158,910 |
|
Current Portion of
Long-term Liabilities : |
|
|
|
|
- Lease
Liabilities |
35,452 |
- |
- |
|
- Card Concession
Payable |
- |
132,893 |
124,783 |
|
Short-term Loan from Subsidiaries Company |
- |
58,000,000 |
30,700,000 |
|
Accrued Income Tax |
5,651,779 |
7,506,545 |
2,174,721 |
|
Other Current Liabilities |
|
|
|
|
Others |
1,378,813 |
496,535 |
401,606 |
|
|
|
|
|
|
Total Current Liabilities |
87,603,407 |
176,613,965 |
122,560,020 |
|
|
|
|
|
|
Card Concession Payable,
Net |
- |
- |
132,893 |
|
Lease Liabilities |
92,623 |
- |
- |
|
Deferred Government |
177,386 |
- |
- |
|
Reserve for Employee
Benefits |
16,174,939 |
14,011,791 |
- |
|
Total Liabilities |
104,048,355 |
190,625,756 |
122,692,913 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 5
par value Authorized &
issued share capital 73,150,000 shares |
365,750,000 |
365,750,000 |
365,750,000 |
|
|
|
|
|
|
Capital Paid |
267,750,000 |
267,750,000 |
267,750,000 |
|
Retained Earning Appropriated for Statutory Reserve |
36,575,000 |
36,575,000 |
36,575,000 |
|
Unappropriated |
280,456,748 |
255,855,101 |
254,491,705 |
|
Total Shareholders' Equity |
584,781,748 |
560,180,101 |
558,816,705 |
|
Total Liabilities &
Shareholders' Equity |
688,830,103 |
750,805,857 |
681,509,618 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
711,851,164 |
682,332,933 |
640,400,070 |
|
Services Income |
9,554,672 |
8,628,569 |
6,062,427 |
|
Other Income |
|
|
|
|
Dividend Income |
10,919,685 |
2,599,925 |
17,159,505 |
|
Gain on
Exchange Rate |
- |
- |
3,018,756 |
|
Others |
2,779,300 |
2,055,204 |
1,720,657 |
|
Total Revenues |
735,104,821 |
695,616,631 |
668,361,415 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
525,786,445 |
484,299,636 |
440,039,148 |
|
Cost of Services |
6,508,000 |
5,783,544 |
4,050,970 |
|
Selling Expenses |
68,206,719 |
80,384,778 |
86,141,518 |
|
Administrative Expenses |
58,262,973 |
53,670,352 |
52,013,304 |
|
Remuneration’s Directors |
2,710,000 |
3,060,000 |
3,110,000 |
|
Cost of Financial |
1,555,021 |
1,690,708 |
739,004 |
|
Total Expenses |
663,029,158 |
628,889,018 |
586,093,944 |
|
|
|
|
|
|
Profit / [Loss] before Income
Tax |
72,075,663 |
66,727,613 |
82,267,471 |
|
Income Tax |
[10,524,516] |
[16,469,851] |
[7,819,629] |
|
|
|
|
|
|
Net Profit / [Loss] |
61,551,147 |
50,257,762 |
74,447,842 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
3.46 |
1.87 |
2.02 |
|
QUICK RATIO |
TIMES |
1.65 |
0.73 |
0.85 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.95 |
1.71 |
1.54 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.05 |
0.92 |
0.95 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
99.73 |
135.34 |
104.59 |
|
INVENTORY TURNOVER |
TIMES |
3.66 |
2.70 |
3.49 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
66.47 |
67.47 |
57.91 |
|
RECEIVABLES TURNOVER |
TIMES |
5.49 |
5.41 |
6.30 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
52.11 |
71.95 |
73.28 |
|
CASH CONVERSION CYCLE |
DAYS |
114.09 |
130.86 |
89.21 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
73.79 |
70.93 |
68.70 |
|
SELLING & ADMINISTRATION |
% |
17.53 |
19.40 |
21.37 |
|
INTEREST |
% |
0.22 |
0.24 |
0.11 |
|
GROSS PROFIT MARGIN |
% |
28.11 |
29.75 |
34.69 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
9.99 |
9.66 |
12.73 |
|
NET PROFIT MARGIN |
% |
8.53 |
7.27 |
11.52 |
|
RETURN ON EQUITY |
% |
10.53 |
8.97 |
13.32 |
|
RETURN ON ASSET |
% |
8.94 |
6.69 |
10.92 |
|
EARNING PER SHARE |
BAHT |
1.15 |
0.94 |
1.39 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.15 |
0.25 |
0.18 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.18 |
0.34 |
0.22 |
|
TIME INTEREST EARNED |
TIMES |
46.35 |
39.47 |
111.32 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
4.41 |
6.88 |
|
|
OPERATING PROFIT |
% |
8.01 |
(18.89) |
|
|
NET PROFIT |
% |
22.47 |
(32.49) |
|
|
FIXED ASSETS |
% |
(8.45) |
(3.46) |
|
|
TOTAL ASSETS |
% |
(8.25) |
10.17 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 4.41%. Turnover has increased from THB
690,961,502.00 in 2011 to THB 721,405,836.00 in 2012. While net profit has
increased from THB 50,257,762.00 in 2011 to THB 61,551,147.00 in 2012. And
total assets has decreased from THB 750,805,857.00 in 2011 to THB
688,830,103.00 in 2012.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
28.11 |
Satisfactory |
Industrial
Average |
35.85 |
|
Net Profit Margin |
8.53 |
Impressive |
Industrial
Average |
3.09 |
|
Return on Assets |
8.94 |
Impressive |
Industrial
Average |
2.95 |
|
Return on Equity |
10.53 |
Impressive |
Industrial
Average |
4.99 |
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 28.11%. 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 8.53%, 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
8.94%, 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 10.53%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profit in a dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
3.46 |
Impressive |
Industrial
Average |
1.64 |
|
Quick Ratio |
1.65 |
|
|
|
|
Cash Conversion Cycle |
114.09 |
|
|
|
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 3.46 times in 2012, increased from 1.87 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 1.65 times in 2012,
increased from 0.73 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 115 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.15 |
Impressive |
Industrial
Average |
0.40 |
|
Debt to Equity Ratio |
0.18 |
Impressive |
Industrial
Average |
0.66 |
|
Times Interest Earned |
46.35 |
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 46.36 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 0.15 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
1.95 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.05 |
Impressive |
Industrial
Average |
0.96 |
|
Inventory Conversion Period |
99.73 |
|
|
|
|
Inventory Turnover |
3.66 |
Acceptable |
Industrial
Average |
5.47 |
|
Receivables Conversion Period |
66.47 |
|
|
|
|
Receivables Turnover |
5.49 |
Impressive |
Industrial
Average |
2.34 |
|
Payables Conversion Period |
52.11 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.49 and 5.41 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
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 135 days at the
end of 2011 to 100 days at the end of
2012. This represents a positive trend. And Inventory turnover has increased
from 2.7 times in year 2011 to 3.66 times in year 2012.
The company's Total Asset Turnover is calculated as 1.05 times and 0.92
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.62.10 |
|
UK Pound |
1 |
Rs.101.27 |
|
Euro |
1 |
Rs.85.43 |
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.