MIRA
INFORM REPORT
|
Report Date : |
07.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
Asian Honda Motor Co., LTd. |
|
|
|
|
Registered Office : |
14 Sarasin Building, Surasak Road, Silom, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2012 |
|
|
|
|
Date of Incorporation : |
12.10.1964 |
|
|
|
|
Com. Reg. No.: |
0105507002389 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Distributor, Exporter and Service Provider of Motorcycles,
Automobiles, Engines and Spare parts. |
|
|
|
|
No. of Employees : |
500 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
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 enjoyed solid growth from 2000 to 2007 - averaging more than 4% per year - as it recovered from the Asian financial crisis of 1997-98. Thai exports - mostly machinery and electronic components, agricultural commodities, and jewelry - continue to drive the economy, accounting for more than half of GDP. The global financial crisis of 2008-09 severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. In 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded from their depressed 2009 level. Steady economic growth at just below 4% during the first three quarters of 2011 was interrupted by historic flooding in October and November in the industrial areas north of Bangkok, crippling the manufacturing sector and leading to a revised growth rate of only 0.1% for the year. The industrial sector is poised to recover from the second quarter of 2012 onward, however, and the government anticipates the economy will probably grow between 5.5 and 6.5% for 2012, while private sector forecasts range between 3.8% and 5.7%.
Source
: CIA
Company name
ASIAN
HONDA MOTOR CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 14
SARASIN BUILDING, SURASAK
ROAD,
SILOM, BANGRAK,
BANGKOK 10500
TELEPHONE : [66] 2236-0256
FAX :
[66] 2635-1050
E-MAIL
ADDRESS : contact@hondacsr.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1964
REGISTRATION
NO. : 0105507002389
TAX
ID NO. : 3101066050
CAPITAL REGISTERED : BHT. 442,700,000
CAPITAL PAID-UP : BHT.
442,700,000
SHAREHOLDER’S PROPORTION : JAPANESE
: 100%
FISCAL YEAR CLOSING DATE : MARCH 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. HIROSHI KOBAYASHI,
JAPANESE
CHIEF EXECUTIVE
OFFICER & PRESIDENT
NO.
OF STAFF : 500
LINES
OF BUSINESS : MOTORCYCLES, AUTOMOBILES,
ENGINES AND
SPARE PARTS
DISTRIBUTOR,
EXPORTER AND SERVICE
PROVIDER
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 established
on October 12,
1964 as a
private limited company under
the registered name
ASIAN HONDA MOTOR
CO., LTD. by
Japanese groups. Its
business objective is
to distribute “HONDA”
automobiles, motorcycles, engines
and spare parts,
as well as
other related services
in Thailand, Asian and
Oceania regions. It
currently employs approximately
500 staff.
The
subject is also
the regional headquarter
of Honda in
Asian and Oceania
countries. It is a
wholly owned subsidiary
of Honda Motor
Co., Ltd., in
Japan.
The
subject’s registered address
is 14 Sarasin Building,
Surasak Rd., Silom,
Bangrak, Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Hiroshi Kobayashi |
[x] |
Japanese |
59 |
|
Mr. Isao Ito |
[+] |
Japanese |
59 |
|
Mr. Toshihiko Miyaki |
[+] |
Japanese |
57 |
|
Mr. Yukihiro Seki |
[+] |
Japanese |
53 |
|
Mr. Shigeki Takane |
[-] |
Japanese |
56 |
|
Mr. Pitak Pruthisarikorn |
[+] |
Thai |
50 |
AUTHORIZED PERSON
Only the mentioned
director [x] can sign
or the mentioned
director [-] can
jointly sign with
anyone of the
directors [+] on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Hiroshi Kobayashi is
the Chief Executive
officer and President.
He is Japanese
nationality with the
age of 59
years old.
Mr. Shigeki Takane is
the Vice President.
He is Japanese
nationality with the
age of 56
years old.
Ms. Aroonsri
Thongveraprasert is the
General Manager [Account &
Finance]
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is engaged
in distributing and
exporting of “HONDA”
automobiles, motorcycles, engines
and spare parts,
as well as
purchasing, procurement and
servicing of parts
for Asian and
Oceania countries. Range
of business’s activities
are as follows:
·
Distributing and
exporting of general
purpose engines, power
product engine and
spare parts
·
Exporting of
motorcycles, automobiles, power
products and components
·
Conducting strategic
planning for production
and purchasing control of
Honda products in
the Asia and Oceania
region
·
Supporting strategic
planning for production,
export, distribution and
sale of Honda
products in the
Asia and Oceania
region
·
Marketing and
selling of power
products in Thailand
·
Managing, distributing
and selling of
parts, including the
increased procurement of
local parts and
improved logistical management
of parts supply
serving all countries
in the region.
PURCHASE
100% of purchasing
is from local
suppliers.
MAJOR
SUPPLIERS
Thai
Honda Manufacturing Co.,
Ltd. : Thailand
A.P.
Honda Co., Ltd. : Thailand
Honda
Automobile [Thailand] Co., Ltd. : Thailand
SALES
The products are
sold and serviced
to both local
and overseas, mainly
in the Asia
and Oceania region, as
well as U.S.A.
and Europe, with
more than 80 countries.
MAJOR CUSTOMERS
Honda Philippines Inc. : Philippines
Honda Vietnam Co., Ltd. : Vietnam
Honda Atlas Cars [Pakistan] Ltd. : Pakistan
etc.
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
or 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 credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
Bank
of Tokyo-Mitsubishi UFJ
Ltd.
EMPLOYMENT
The
subject currently employs
approximately 500 staff.
LOCATION
DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in a prime
commercial area.
Branches
-
99 Moo 9,
Bangna-Trad Rd., K.M. 36, T. Bangwua,
A. Bangpakong, Chachoengsao
-
44/1-6
Moo 7, Romklao
Rd.,, Minburi, Minburi,
Bangkok
-
49 Moo 9
Rojana Rd., T. Thanu,
A. U-Thai, Ayutthaya
-
209 Moo 1,
Romklao Rd., Klongsong
Tonnoon, Ladkrabang, Bangkok
-
2/1 Moo 5,
Tharaeng, Bangkhen, Bangkok.
-
55/5 Moo
5, T. Bangsamak, A. Bangpakong, Chachoengsao
COMMENT
The
company was established
in order to distribute
and export of motorcycles,
automobile and power
products. It also
took on the role
of Honda’s ASEAN
Regional Headquarters with
responsibility for coordinating
Honda’s activities in
12 countries and supporting Honda
operations in several
additional countries within the
region.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 10,000,000
divided into 10,000
shares of Bht.
1,000 each with
fully paid.
The
capital was increased
later as follows:
Bht. 100,000,000
on March
17, 1981
Bht. 387,200,000
on March
16, 1987
Bht. 407,900,000
on March
11, 1988
Bht. 442,700,000
on April
20, 1992
The
latest registered capital
was increased to
Bht. 442,700,000 divided
into 442,700 shares
of Bht. 1,000 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
June 15, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Honda Motor Co.,
Ltd. Nationality: Japanese Address : 1-1-2 Chome
Minami-Aoyama Minato-ku, Tokyo, Japan |
442,698 |
100.00 |
|
Mr. Hiroshi Kobayashi Nationality: Japanese Address :
14 Surasak Rd.,
Silom, Bangrak, Bangkok |
1 |
- |
|
Mr. Shigeki Takane Nationality: Japanese Address : 14
Surasak Rd., Silom,
Bangrak, Bangkok |
1 |
- |
Total Shareholders : 3
Share Structure [as
at June 15,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign-Japanese |
3 |
442,700 |
100.00 |
|
Total |
3 |
442,700 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Charoen Phusamritlert No.
4068
BALANCE SHEET [BAHT]
The latest financial figures published
as at March
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
14,812,167,017 |
10,672,021,771 |
8,428,095,196 |
|
Short-term Investment |
- |
1,599,278,885 |
4,901,929,048 |
|
Trade Accounts Receivable
|
7,361,329,050 |
8,961,232,967 |
9,565,612,324 |
|
Short-term Lending to Related
Company |
212,000,000 |
320,000,000 |
493,000,000 |
|
Current Portion of
Long-term Lending Related Company
|
49,182,510 |
- |
- |
|
Inventories |
3,986,109,382 |
3,582,579,489 |
3,680,418,914 |
|
Deferred Value Added Tax |
347,954,555 |
399,285,439 |
- |
|
Deferred Refundable from Export
|
356,965,054 |
342,351,615 |
- |
|
Deferred Dividend |
202,390,539 |
328,785,436 |
- |
|
Account Receivable under Forward Contract |
129,627,725 |
196,086,338 |
- |
|
Other Current Assets
|
367,338,443 |
434,665,554 |
2,486,161,465 |
|
|
|
|
|
|
Total Current Assets
|
27,825,064,275 |
26,836,287,494 |
29,555,216,947 |
|
Investment in Subsidiaries |
1,047,375,000 |
1,148,176,250 |
1,275,613,015 |
|
Investment in Associated
Company |
3,963,602,544 |
3,502,058,199 |
3,502,058,199 |
|
Investment in Related Company |
712,400,000 |
712,400,000 |
712,400,000 |
|
Other Long-term Investment
|
385,124,450 |
364,964,137 |
364,964,137 |
|
Long-term Lending to Related
Company |
209,017,686 |
- |
- |
|
Real Estate for Investment |
2,071,951,727 |
2,125,010,370 |
2,152,228,126 |
|
Fixed Assets |
1,640,589,557 |
984,117,626 |
1,017,217,074 |
|
Intangible Assets |
184,156,573 |
208,710,915 |
163,786,608 |
|
Other Non-current Assets |
18,151,556 |
19,093,961 |
16,743,816 |
|
Total Assets |
38,057,433,368 |
35,900,818,952 |
38,760,227,922 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable
|
10,207,532,443 |
9,457,525,741 |
9,174,449,515 |
|
Other Payable Related
Company |
112,153,916 |
101,779,164 |
75,013,434 |
|
Other Payable |
206,024,020 |
162,612,389 |
241,743,998 |
|
Accrued Income Tax |
1,451,421,103 |
900,230,840 |
671,032,300 |
|
Account Payable under
Forward Contract |
- |
2,776,992 |
64,095,326 |
|
Accrued Expenses |
784,563,017 |
742,102,496 |
879,610,015 |
|
Short-term Estimated Liabilities for Employee Benefit |
1,575,695 |
1,044,205 |
- |
|
Other Current Liabilities |
66,241,096 |
82,645,577 |
42,971,454 |
|
|
|
|
|
|
Total Current Liabilities |
12,829,511,290 |
11,450,717,404 |
11,148,916,042 |
|
Guarantee from Customer |
154,942,500 |
152,174,000 |
162,634,000 |
|
Long-term Estimated Liabilities for Employee
Benefit |
82,243,983 |
71,239,691 |
73,813,137 |
|
Deferred Income Tax
Liabilities |
17,141,313 |
55,039,447 |
114,829,647 |
|
Total Liabilities |
13,083,839,086 |
11,729,170,542 |
11,500,192,826 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 442,700 shares |
442,700,000 |
442,700,000 |
442,700,000 |
|
|
|
|
|
|
Capital Paid |
442,700,000 |
442,700,000 |
442,700,000 |
|
Retained Earnings: Appropriated for Statutory Reserve |
44,270,000 |
44,270,000 |
44,270,000 |
|
Unappropriated |
24,486,624,282 |
23,684,678,410 |
26,773,065,096 |
|
Total Shareholders' Equity |
24,973,594,282 |
24,171,648,410 |
27,260,035,096 |
|
Total Liabilities &
Shareholders' Equity |
38,057,433,368 |
35,900,818,952 |
38,760,227,922 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
78,202,227,319 |
102,647,978,519 |
80,975,641,292 |
|
Interest Income |
363,728,639 |
165,943,226 |
181,094,030 |
|
Dividend Income |
1,882,490,401 |
2,499,670,182 |
3,992,295,778 |
|
Rental Income |
144,447,000 |
140,910,000 |
- |
|
Gain on Exchange Rate |
271,092,115 |
1,491,363,923 |
513,412,153 |
|
Other Income |
1,393,490,277 |
829,039,884 |
1,597,726,814 |
|
Total Revenues |
82,257,475,751 |
107,774,905,734 |
87,260,170,067 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
67,095,976,204 |
92,726,687,219 |
71,970,258,097 |
|
Selling Expenses |
3,475,784,245 |
4,642,228,035 |
3,842,303,002 |
|
Administrative Expenses |
2,276,697,000 |
2,169,157,382 |
1,909,682,257 |
|
Total Expenses |
72,848,457,449 |
99,538,072,636 |
77,722,243,356 |
|
Profit before Income
Tax |
9,409,018,302 |
8,236,833,098 |
9,537,926,711 |
|
Income Tax |
[2,444,688,430] |
[2,075,003,284] |
[1,829,622,378] |
|
|
|
|
|
|
Net Profit / [Loss] |
6,964,329,872 |
6,161,829,814 |
7,708,304,333 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY
RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.17 |
2.34 |
2.65 |
|
QUICK RATIO |
TIMES |
1.75 |
1.88 |
2.10 |
|
|
|
|
|
|
|
ACTIVITY
RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
47.76 |
104.45 |
79.61 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.06 |
2.86 |
2.09 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
21.68 |
14.10 |
18.67 |
|
INVENTORY TURNOVER |
TIMES |
16.83 |
25.88 |
19.55 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
34.29 |
31.82 |
43.12 |
|
RECEIVABLES TURNOVER |
TIMES |
10.64 |
11.47 |
8.47 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
55.53 |
37.23 |
46.53 |
|
CASH CONVERSION CYCLE |
DAYS |
0.45 |
8.70 |
15.25 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
85.64 |
90.21 |
88.88 |
|
SELLING & ADMINISTRATION |
% |
7.34 |
6.63 |
7.10 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
19.35 |
14.64 |
18.88 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
12.01 |
8.01 |
11.78 |
|
NET PROFIT MARGIN |
% |
8.89 |
5.99 |
9.52 |
|
RETURN ON EQUITY |
% |
27.89 |
25.49 |
28.28 |
|
RETURN ON ASSET |
% |
18.30 |
17.16 |
19.89 |
|
EARNING PER SHARE |
BAHT |
15,731.49 |
13,918.75 |
17,412.03 |
|
|
|
|
|
|
|
LEVERAGE
RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.34 |
0.33 |
0.30 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.52 |
0.49 |
0.42 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL
GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(23.78) |
26.94 |
|
|
OPERATING PROFIT |
% |
14.23 |
(13.64) |
|
|
NET PROFIT |
% |
13.02 |
(20.06) |
|
|
FIXED ASSETS |
% |
66.71 |
(3.25) |
|
|
TOTAL ASSETS |
% |
6.01 |
(7.38) |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is -23.78%.
Turnover has decreased from THB 102,788,888,519.00 in 2011 to THB
78,346,674,319.00 in 2012. While net profit has increased from THB
6,161,829,814.00 in 2011 to THB 6,964,329,872.00 in 2012. And total assets has
increased from THB 35,900,818,952.00 in 2011 to THB 38,057,433,368.00 in 2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
19.35 |
Impressive |
Industrial Average |
8.25 |
|
Net Profit Margin |
8.89 |
Impressive |
Industrial Average |
1.31 |
|
Return on Assets |
18.30 |
Impressive |
Industrial Average |
3.87 |
|
Return on Equity |
27.89 |
Impressive |
Industrial Average |
13.67 |
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 19.35%. When compared with the industry
average, the ratio of the company was higher, indicated that company was more
profitable than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company’s figure is in 8.89%, 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
18.3%, 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 27.89%, 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 Uptrend
LIQUIDITY :
IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
2.17 |
Impressive |
Industrial Average |
1.16 |
|
Quick Ratio |
1.75 |
|
|
|
|
Cash Conversion Cycle |
0.45 |
|
|
|
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 2.17 times in 2012, decreased from 2.34 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 1.75 times in 2012,
decreased from 1.88 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 1 day.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.34 |
Impressive |
Industrial Average |
0.73 |
|
Debt to Equity Ratio |
0.52 |
Impressive |
Industrial Average |
2.17 |
|
Times Interest Earned |
- |
|
Industrial Average |
3.40 |
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.34 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 Uptrend
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
47.76 |
Impressive |
Industrial Average |
8.63 |
|
Total Assets Turnover |
2.06 |
Acceptable |
Industrial Average |
3.04 |
|
Inventory Conversion Period |
21.68 |
|
|
|
|
Inventory Turnover |
16.83 |
Impressive |
Industrial Average |
8.23 |
|
Receivables Conversion Period |
34.29 |
|
|
|
|
Receivables Turnover |
10.64 |
Satisfactory |
Industrial Average |
11.23 |
|
Payables Conversion Period |
55.53 |
|
|
|
The company's Account Receivable Ratio is calculated as 10.64 and 11.47
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 14 days at the
end of 2011 to 22 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 25.88 times in year 2011 to 16.83
times in year 2012.
The company's Total Asset Turnover is calculated as 2.06 times and 2.86
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 Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.09 |
|
|
1 |
Rs.83.12 |
|
Euro |
1 |
Rs.72.02 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.