MIRA
INFORM REPORT
|
Report Date : |
28.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
ACME INSULATION CO., LTD. |
|
|
|
|
Registered Office : |
999/95 Moo 20, Soi Boonmeesap 4, Bangplee-Tumru Road, Bangpleeyai, Bangplee, Samutprakarn 10540 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
04.02.2004 |
|
|
|
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Com. Reg. No.: |
0115547001162 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer and Distributor of Electrical Insulation and Related Products |
|
|
|
|
No. of Employees : |
15 |
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 – 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
ACME
INSULATION CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 999/95 MOO
20, SOI BOONMEESAP
4,
BANGPLEE-TUMRU ROAD,
BANGPLEEYAI, BANGPLEE,
SAMUTPRAKARN 10540
TELEPHONE : [66] 2174-5186-7,
086 500-5961
FAX :
[66] 2174-5188
E-MAIL
ADDRESS : sales@acme.in.th
info@acme.in.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2004
REGISTRATION
NO. : 0115547001162
TAX
ID NO. : 3031228344
CAPITAL REGISTERED : BHT. 5,000,000
CAPITAL PAID-UP : BHT.
5,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN :
49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. DINESH KUMAR
AGAWAL, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 15
LINES
OF BUSINESS : ELECTRICAL INSULATION
AND RELATED PRODUCTS
IMPORTER AND
DISTRIBUTOR
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 February 4,
2004 as a
private limited company under
the name style
ACME INSULATION CO.,
LTD., by Thai
and Indian groups,
with the business
objective to import
and distribute various
kinds of electrical
insulation and related
products for local
leading power & distribution transformer
manufacturers, motor manufacturers, switchgear
manufacturers, OEM, states
enterprises and government
sectors. It currently
employs 15 staff.
The
subject’s registered address was
initially at 62
Klongtaket Western Rd.,
Paknam, Muang, Samutprakarn
10280.
On
June 24, 2009,
subject’s registered address was
relocated to 999/95
Moo 20, Soi
Boonmeesap 4, Bangplee-Tumru Rd.,
Bangpleeyai, Bangplee, Samutprakarn
10540, and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Dinesh Kumar Agawal |
[x] |
Indian |
39 |
|
Mrs. Seema Agawal |
|
Indian |
40 |
AUTHORIZED PERSON
The above director
[x] can sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Dinesh Kumar Agawal
is the Managing
Director.
He is Indian
nationality with the
age of 39
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing various
kinds of electrical
insulation and related
products, divided into
8 main products
as follows:
1. Electrical Insulating Papers
- Tranformer
board
- Components
of pressboard
- Presspahn
paper
- Insulating
kraft paper
- Crepe
paper & tube
- Diamond
dotted insulation paper
2. Transformer Oils
- Uninhibited
transformer insulating oils
- Inhibited
transformer insulating oils
- Trace
inhibited transformer insulating oils
- Special
grade transformer insulating oils
3. Bushings
- HV
transformer bushings
- LV
transformer bushings
4. Rubber Cork
5. Electrical Laminated Wood
6. Coil Winding Wires
- Enameled
round winding wires
- Enameled
rectangular winding wires
- Paper
covered winding wires
- Continuously
transposed cable
- Paper-covered
stranded copper cable
7. Electrical Steels
8. Transformer Spare Parts
- Radiator
fins/panel
- Air
bag/cells for separator of
transformer
- FRP
epoxy pultruded profiles
- Transformer
accessories
IMPORT
100%
of the products
is imported from
India, United States
of America, Germany,
Republic of China,
Japan, Singapore and
Taiwan.
MAJOR SUPPLIER
Umang
Boards Pvt. Ltd. : India
SALES
100% of the
products is sold
and supplied locally
to traders and
end-users.
MAJOR CUSTOMERS
Newtech Insulation Co.,
Ltd. : Thailand
Top Insulation and
Trading Co., Ltd. : Thailand
Electricity Generating Authority
of Thailand :
Thailand
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
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Sales are 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]
EMPLOYMENT
The
subject employs 15
staff.
LOCATION DETAILS
The
premises is owned
for administrative office
and showroom at
the heading address.
Premises is located
in industrial area.
COMMENT
The
subject’s business performance
in 2011 was
satisfactory comparing to the previous
year’s level. With
an improvement and
growth of various
industries have prompted
a large number
of subject’s orders
to meet with
rising demand of electrical
related products. The
business prospect remains
bright, as well as
moderate growth is
expected to continue
throughout this year.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000 divided into 20,000
shares of Bht. 100
each.
On
June 20, 2008, the
capital was increased
to Bht. 5,000,000
divided into 50,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Dinesh Kumar Agawal Nationality: Indian Address : 999/95
Moo 20, Soi
Boonmeesap 4, Bangplee-Tumru Rd.,
Bangpleeyai,
Bangplee, Samutprakarn |
14,700 |
29.40 |
|
Mrs. Seema Agawal Nationality: Indian Address : 999/95
Moo 20, Soi
Boonmeesap 4,
Bangplee-Tumru Rd., Bangpleeyai,
Bangplee, Samutprakarn |
9,800 |
19.60 |
|
Ms. Nipa Prakobkij Nationality: Thai Address : 40
Maesod-Maedao Rd., Maesod,
Tak |
7,650 |
15.30 |
|
Mrs. Savitree Tripatee Nationality: Thai Address : 45
Soi Chalermprakiat Ror. 9
Soi 5,
Bangbon, Praves, Bangkok |
7,650 |
15.30 |
|
Ms. Maneephan Kamjoon Nationality: Thai Address : 33/1097
Moo 10, Ladprao,
Bangkok |
5,100 |
10.20 |
|
Mr. Adisorn Prakobkij Nationality: Thai Address : 40
Maesod-Maetao Rd., Maesod,
Tak |
5,100 |
10.20 |
Total Shareholders : 6
Share
Structure [as at
April 30, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
25,500 |
51.00 |
|
Foreign - Indian |
2 |
24,500 |
49.00 |
|
Total |
6 |
50,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Jirapong Kuakij No.
5149
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash and Cash
Equivalents |
5,101,894.03 |
3,235,986.93 |
7,040,210.13 |
|
Trade Accounts Receivable |
39,469,477.27 |
19,992,804.71 |
12,279,274.61 |
|
Short-term Loan to
Director |
- |
- |
3,200,000.00 |
|
Inventories |
10,108,716.18 |
9,494,077.96 |
2,798,906.91 |
|
Prepaid Goods |
4,897,641.15 |
2,000,684.70 |
- |
|
Other Current Assets
|
375,728.44 |
511,828.25 |
415,062.10 |
|
Total Current Assets
|
59,953,457.07 |
35,235,382.55 |
25,733,453.75 |
|
Cash at Bank pledged as
a Collateral |
1,500,000.00 |
- |
- |
|
Fixed Assets |
10,371,123.06 |
11,167,515.94 |
11,303,548.18 |
|
Total Assets |
71,824,580.13 |
46,402,898.49 |
37,037,001.93 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Trade Accounts Payable |
13,992,196.44 |
4,620,308.45 |
1,132,471.00 |
|
Short-term Loan |
2,600,000.00 |
540,000.00 |
- |
|
Current Portion of Long-term
Loan |
128,000.00 |
6,377,394.76 |
966,000.00 |
|
Current Portion of Hire-purchase Liabilities |
98,848.56 |
262,812.00 |
165,858.00 |
|
Accrued Professional Fee |
960,000.00 |
690,000.00 |
1,290,000.00 |
|
Accrued Commission |
1,997,704.11 |
1,374,743.08 |
940,247.99 |
|
Advance Income from
Goods |
- |
1,367,173.76 |
- |
|
Accrued Bonus |
2,602,000.00 |
1,265,000.00 |
1,131,000.00 |
|
Accrued Directors’ Remuneration |
2,400,000.00 |
600,000.00 |
- |
|
Accrued Income Tax |
4,010,572.63 |
496,751.09 |
1,992,248.68 |
|
Accrued Expenses |
270,318.13 |
125,342.87 |
108,214.44 |
|
Total Current Liabilities |
29,059,639.87 |
17,719,526.01 |
7,726,040.11 |
|
Long-term Loan |
1,097,872.95 |
1,225,872.95 |
7,577,410.91 |
|
Hire-purchase Payable |
197,697.12 |
215,201.74 |
90,856.88 |
|
Total Liabilities |
30,355,209.94 |
19,160,600.70 |
15,394,307.90 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100 par
value authorized, issued
and fully paid share
capital 50,000 shares |
5,000,000.00 |
5,000,000.00 |
5,000,000.00 |
|
Capital Paid |
5,000,000.00 |
5,000,000.00 |
5,000,000.00 |
|
Retained Earning -
Unappropriated |
36,469,370.19 |
22,242,297.79 |
16,642,694.03 |
|
Total Shareholders' Equity |
41,469,370.19 |
27,242,297.79 |
21,642,694.03 |
|
Total Liabilities & Shareholders' Equity |
71,824,580.13 |
46,402,898.49 |
37,037,001.93 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales |
194,455,157.09 |
91,956,633.24 |
69,726,133.42 |
|
Other Income |
209,275.70 |
877,097.87 |
464,820.44 |
|
Total Revenues |
194,664,432.79 |
92,833,731.11 |
70,190,953.86 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Purchase Goods |
154,621,370.41 |
78,206,768.15 |
43,660,947.80 |
|
Change in Finished
Goods |
[614,638.22] |
[6,695,171.05] |
2,570,719.28 |
|
Commission |
7,169,543.38 |
4,470,063.84 |
4,663,003.48 |
|
Employees Expenses |
5,667,472.01 |
4,110,508.00 |
3,522,228.40 |
|
Directors’ Remuneration |
2,400,000.00 |
600,000.00 |
- |
|
Professional Fee |
1,070,000.00 |
805,000.00 |
752,000.00 |
|
Depreciation |
834,513.21 |
780,793.89 |
692,560.34 |
|
Vehicle Expenses |
490,318.02 |
585,508.97 |
367,227.62 |
|
Transit |
589,900.00 |
416,750.00 |
374,500.00 |
|
Fees |
482,333.59 |
334,283.78 |
206,114.95 |
|
Other Services |
- |
- |
600,000.00 |
|
Utilities Expenses |
- |
- |
115,677.80 |
|
Guarantee |
300,792.11 |
275,692.93 |
- |
|
Processing Services Expenses |
391,932.05 |
165,878.75 |
- |
|
Other Expenses |
546,987.91 |
625,817.45 |
1,312,854.69 |
|
Total Expenses |
173,950,524.47 |
84,681,894.71 |
58,837,834.36 |
|
Profit before Financial
Cost & Income Tax |
20,713,908.32 |
8,151,836.40 |
11,353,119.50 |
|
Financial Cost |
[770,499.41] |
[501,413.55] |
[494,237.04] |
|
Profit before Income
Tax |
19,943,408.91 |
7,650,422.85 |
10,858,882.46 |
|
Income Tax |
[5,716,336.51] |
[2,050,819.09] |
[2,993,032.51] |
|
Net Profit / [Loss] |
14,227,072.40 |
5,599,603.76 |
7,865,849.95 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.06 |
1.99 |
3.33 |
|
QUICK RATIO |
TIMES |
1.53 |
1.31 |
2.91 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
18.79 |
8.25 |
6.17 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.71 |
1.99 |
1.88 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
23.86 |
44.31 |
23.40 |
|
INVENTORY TURNOVER |
TIMES |
15.30 |
8.24 |
15.60 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
73.94 |
79.21 |
64.28 |
|
RECEIVABLES TURNOVER |
TIMES |
4.94 |
4.61 |
5.68 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
33.03 |
21.56 |
9.47 |
|
CASH CONVERSION CYCLE |
DAYS |
64.77 |
101.96 |
78.21 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
79.36 |
84.89 |
62.62 |
|
SELLING & ADMINISTRATION |
% |
3.34 |
5.31 |
6.04 |
|
INTEREST |
% |
0.40 |
0.54 |
0.71 |
|
GROSS PROFIT MARGIN |
% |
20.55 |
15.88 |
38.05 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
10.63 |
8.85 |
16.28 |
|
NET PROFIT MARGIN |
% |
7.30 |
6.08 |
11.28 |
|
RETURN ON EQUITY |
% |
34.31 |
20.55 |
36.34 |
|
RETURN ON ASSET |
% |
19.81 |
12.07 |
21.24 |
|
EARNING PER SHARE |
BAHT |
284.54 |
111.99 |
157.32 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.42 |
0.41 |
0.42 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.73 |
0.70 |
0.71 |
|
TIME INTEREST EARNED |
TIMES |
26.88 |
16.26 |
22.97 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
111.51 |
32.12 |
|
|
OPERATING PROFIT |
% |
154.10 |
(28.20) |
|
|
NET PROFIT |
% |
154.07 |
(28.81) |
|
|
FIXED ASSETS |
% |
(7.13) |
(1.20) |
|
|
TOTAL ASSETS |
% |
54.78 |
25.29 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 111.51%. Turnover has increased from THB
92,122,511.99 in 2010 to THB 194,847,089.14 in 2011. While net profit has
increased from THB 5,599,603.76 in 2010 to THB 14,227,072.40 in 2011. And total
assets has increased from THB 46,402,898.49 in 2010 to THB 71,824,580.13 in
2011.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
20.55 |
Impressive |
Industrial
Average |
14.70 |
|
Net Profit Margin |
7.30 |
Impressive |
Industrial
Average |
1.40 |
|
Return on Assets |
19.81 |
Impressive |
Industrial
Average |
3.07 |
|
Return on Equity |
34.31 |
Impressive |
Industrial
Average |
8.28 |
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. Gross Profit Margin is 20.55%. 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. Net Profit Margin ratio is 7.3%,
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
19.81%, 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 34.31%, 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 |
2.06 |
Impressive |
Industrial
Average |
1.51 |
|
Quick Ratio |
1.53 |
|
|
|
|
Cash Conversion Cycle |
64.77 |
|
|
|
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 2.06 times in 2011, decrease from 1.99 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 1.53 times in 2011,
decrease from 1.31 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 65 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.42 |
Impressive |
Industrial
Average |
0.63 |
|
Debt to Equity Ratio |
0.73 |
Impressive |
Industrial
Average |
1.67 |
|
Times Interest Earned |
26.88 |
Impressive |
Industrial
Average |
3.28 |
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 26.89 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 0.42 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
18.79 |
Impressive |
Industrial
Average |
11.17 |
|
Total Assets Turnover |
2.71 |
Impressive |
Industrial
Average |
2.18 |
|
Inventory Conversion Period |
23.86 |
|
|
|
|
Inventory Turnover |
15.30 |
Impressive |
Industrial
Average |
4.99 |
|
Receivables Conversion Period |
73.94 |
|
|
|
|
Receivables Turnover |
4.94 |
Impressive |
Industrial
Average |
4.65 |
|
Payables Conversion Period |
33.03 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.94 and 4.61 in
2011 and 2010 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 2011
increased from 2010. 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 44 days at the
end of 2010 to 24 days at the end of 2011. This represents a positive trend.
And Inventory turnover has increased from 8.24 times in year 2010 to 15.3 times
in year 2011.
The company's Total Asset Turnover is calculated as 2.71 times and 1.99
times in 2011 and 2010 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.53.85 |
|
|
1 |
Rs.85.25 |
|
Euro |
1 |
Rs.71.72 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.