MIRA INFORM REPORT
|
Report Date : |
02.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
EGCO ENGINEERING & SERVICE COMPANY LIMITED [ESCO] |
|
|
|
|
Registered Office : |
13th Floor, Egco Tower, Moo 5, Vibhavadi Rangsit Road, Thungsonghong, Laksi, Bangkok 10210 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
08.09.1995 |
|
|
|
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Com. Reg. No.: |
0105538107166 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Engineering and Construction Service |
|
|
|
|
No. of Employees : |
300 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
THAILAND - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise
economy, generally pro-investment policies, and strong export industries,
Thailand achieved steady growth due largely to industrial and agriculture
exports - mostly electronics, agricultural commodities, automobiles and parts,
and processed foods. Thailand is trying to maintain growth by encouraging
domestic consumption and public investment to offset weak exports in 2012.
Unemployment, at less than 1% of the labor force, stands as one of the lowest levels
in the world, which puts upward pressure on wages in some industries. Thailand
also attracts nearly 2.5 million migrant workers from neighboring countries.
The Thai government is implementing a nation-wide 300 baht ($10) per day
minimum wage policy and deploying new tax reforms designed to lower rates on
middle-income earners. The Thai economy has weathered internal and external
economic shocks in recent years. The global economic 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
EGCO ENGINEERING
& SERVICE COMPANY LIMITED [ESCO]
SUMMARY
BUSINESS ADDRESS : 13th FLOOR,
EGCO TOWER,
MOO 5,
VIBHAVADI -RANGSIT ROAD,
THUNGSONGHONG, LAKSI,
BANGKOK 10210
TELEPHONE : [66] 2998-5999
FAX : [66] 2955-0956-8
E-MAIL ADDRESS : -
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1995
REGISTRATION NO. : 0105538107166
TAX ID NO. : 3011626184
CAPITAL REGISTERED : BHT.
400,000,000
CAPITAL PAID-UP : BHT.
400,000,000
SHAREHOLDER’S PROPORTION : THAI
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. WAJARAPONG PALAKAWONG
NA AYUDHYA,
THAI
, MANAGING DIRECTOR
NO. OF STAFF : 300
LINES OF BUSINESS : ENGINEERING AND
CONSTRUCTION SERVICE
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 September
8, 1995 as
a private limited
company under the name
style EGCO ENGINEERING
& SERVICE COMPANY
LIMITED [ESCO], by
Thai groups, with
the business objective
to provide engineering,
construction and related
services to power
and industrial plants.
It currently employs
approximately 300 staff.
Subject is a
wholly owned subsidiary
of Electricity Generating
Public Company Limited [EGCO].
The subject’s registered
address is 13th Floor,
Egco Tower, 222
Vibhavadi-Rangsit Rd., Thungsonghong, Laksi,
Bangkok 10210, and
this is the
subject’s current operation
address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Charnkij Chiaraphan |
|
Thai |
59 |
|
Mr. Sakul Pojanart |
|
Thai |
56 |
|
Mr. Sahas Prataknukul |
[x] |
Thai |
58 |
|
Mr. Wajarapong Palakawong Na
Ayudhya |
[x] |
Thai |
60 |
|
Mr. Chumsak Deesudjit |
|
Thai |
59 |
|
Mr. Piya Jaetasanont |
|
Thai |
55 |
|
Mr. John Matthew Palumbo |
|
American |
50 |
|
Mr. Vorawit Phosook |
|
Thai |
56 |
|
Mr. Niwat Adirek |
|
Thai |
54 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can sign or
any two of
the rest directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Wajarapong Palakawong Na
Ayudhya is the
Managing Director.
He is Thai
nationality with the
age of 60
years old.
Mr. Witchaya Prasertlap is
the Deputy Managing
Director [Operation].
He is Thai
nationality.
Mr. Chumnong Ngernrad is
the Engineering & Energy Business
Division Manager.
He is Thai
nationality.
Mr. Intouch Prakobvanichkul is the
Maintenance Division
Manager.
He is Thai
nationality.
Mr. Surasak Ganjanakit is
the Administration Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in providing wide range of services, such as
engineering, construction and
project management, operation,
maintenance, and energy
preservation, field testing
and training to
power and large
industrial plants, especially
in EGCO group.
Range of business
and services are
as follows:
Plant Operation & Maintenance
ESCO has marked
with proven experience
and expertise in
providing plant
operation &
maintenance service to
both thermal power
and combined cycle
power plants,
encompassing commissioning and
operation.
Maintenance Service
ESCO provides a
diverse range of
maintenance services to
various industries, such
as power plants,
petrochemical plants, and
oil & gas refineries. They
are designed to
match the specific
needs of customers
including major shutdowns
for maintenance, general
equipment maintenance, and
emergency service. The
company has expertise
in maintaining machinery,
electricity systems and
control & monitoring
equipment backed by
the capabilities to
provide integrated service
to different industries,
especially power plant.
Engineering and Construction
ESCO has capabilities
in engineering design,
project management as
well as procurement
and construction. Its
service spans civil,
mechanical, electrical work,
control system, and
installation and test-running.
The emphasis is
placed on major
power plant equipment
such as gas
turbines, steam turbines,
generators, boilers.
Training Service
With highly capable
and experienced personnel
together with strong
academic allied, ESCO’s
training service has
gained wide acceptance
by customers both
locally and international. The
training service covers
on operation and
maintenance of power
plants, transmission, distribution,
and finance and
management.
PURCHASE
80% of construction equipments
and supplies are
purchased from local
suppliers, the remaining
20%, as well
as engineering equipment
is imported from
Germany, U.S.A., Japan,
France, Hong Kong,
Taiwan, India, Italy
and Republic of
China.
SERVICES
100% of its services is supplied
to local power
plant and other industrial industries
such as petrochemicals, oil
& gas, environmental and
etc.
MAJOR CUSTOMERS
PTT Group
EGCO Cogeneration Co.,
Ltd.
Roi-Et Green Co.,
Ltd.
Thai Oil Public
Company Limited
IRPC Public Company
Limited
Natural Energy Development
Co., Ltd.
Electricity Generating Authority
of Thailand
SUBSIDIARY AND AFFILIATED
COMPANIES
Amata Power-Esco Service
Co., Ltd.
Business Type : Operation
and maintenance service
for power plant
Agro Energy Co., Ltd.
Business Type : Service
of fuel from agricultural
waste, rice husk.
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
Services are depended
on agreement.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T.
BANKING
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
approximately 300 office
staff, engineers and
service workers.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is located
in commercial/residential area.
Site office :
35 Rayong Hightway
3191, T. Huahpong, A.
Muang, Rayong 21150
Tel : [66]
38 682-611-4, Fax
: [66] 38 682-823
COMMENT
The subject is
doing good business.
Having key personnel acquiring
long term experience
in engineering, procurement
and construction, the
professional team is
developed to provide
turnkey Environment Planning Services
focusing on mechanical
and engineering.
Gains were from
the Egco Group in
which the industries
that have more
investment and expansion,
e.g. power plant
and petrochemical industry.
FINANCIAl INFORMATION
The capital was
registered at Bht.
10,000,000 divided into
1,000,000 shares of
Bht. 10 each.
The capital was
increased and decreased
later as following:
Bht. 100,000,000 on
March 11, 1996
Bht. 210,000,000 on
July 10, 1997
Bht. 300,000,000 on
May 30, 2000
Bht. 350,000,000 on
December 27 2000
Bht. 250,000,000 on
March 5, 2003
[Decreased]
Bht. 400,000,000 on
December 16, 2005
The latest registered
capital was increased
to Bht. 400 million,
divided into 40,000,000
shares of Bht.
10 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE
[as at April
4, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Electricity Generating Public
Company Limted Nationality: Thai Address : 222
Moo 5, Vabhavadi-Rangsit Rd.,
Thungsonghong, Laksi, Bangkok
|
39,999,998 |
100.00 |
|
Mrs. Vimolwan Sasanawin Nationality: Thai Address : 42
Moo 10, Ladprao,
Bangkok |
1 |
- |
|
Mr. Charnkij Chiaraphan Nationality: Thai Address : 203/16-17
Moo 1, Wadpho-Bangyai Rd.,
Makhamtia, Muang, Suratthani |
1 |
- |
Total Shareholders : 3
Share Structure
[as at April
4, 2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
40,000,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
40,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Amornrat Permpoonwattanasuk
No. 4599
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2012,
2011 and 2010
were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash in Hand
& at Bank |
168,677,842 |
148,396,001 |
98,436,705 |
|
Short-term Investment |
- |
20,261,746 |
- |
|
Trade Accounts Receivable |
150,854,164 |
151,072,184 |
160,893,835 |
|
Trade Accounts Receivable
to Related Company |
117,622,661 |
56,372,427 |
141,108,538 |
|
Work in Progress |
46,689,348 |
11,322,436 |
2,474,943 |
|
Other Current Assets
|
160,023,451 |
105,784,961 |
203,767,347 |
|
|
|
|
|
|
Total Current Assets
|
643,867,466 |
493,209,755 |
606,681,368 |
|
Cash at Bank
pledged as a
Collateral |
282,300 |
282,300 |
282,300 |
|
Long-term Investment in
Marketable Securities available
for Sale |
3,000,000 |
3,000,000 |
3,000,000 |
|
Long-term Investment in
Subsidiary |
723,692,148 |
748,956,620 |
774,221,092 |
|
Real Estate for Investment |
33,546,253 |
35,621,288 |
- |
|
Fixed Assets |
83,167,325 |
87,168,310 |
120,181,697 |
|
Other Non-current Assets |
3,544,761 |
3,490,507 |
1,524,335 |
|
Total Assets |
1,491,100,253 |
1,371,728,780 |
1,505,890,792 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable |
43,251,697 |
33,812,443 |
37,503,004 |
|
Trade Accounts and
Other Payable Related Company
|
610,221 |
3,360,779 |
5,110,053 |
|
Current Portion of
Long-term from Parent Company |
45,882,350 |
45,882,350 |
45,882,350 |
|
Accrued Dividend |
169,694,335 |
118,439,267 |
150,439,267 |
|
Other Current Liabilities |
141,244,952 |
77,484,232 |
113,731,251 |
|
|
|
|
|
|
Total Current Liabilities |
400,683,555 |
278,979,071 |
352,665,925 |
|
Long-term Loan from
Parent Company |
550,588,250 |
596,470,600 |
642,352,950 |
|
Employee Benefits Obligation |
33,716,580 |
29,966,046 |
31,012,690 |
|
Other Non-current Liabilities |
1,800,000 |
1,800,000 |
1,791,600 |
|
Total Liabilities |
986,788,385 |
907,215,717 |
1,027,823,165 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 40,000,000 shares |
400,000,000 |
400,000,000 |
400,000,000 |
|
|
|
|
|
|
Capital Paid |
400,000,000 |
400,000,000 |
400,000,000 |
|
Retained Earning Appropriated for
Statutory Reserve |
40,000,000 |
40,000,000 |
40,000,000 |
|
Unappropriated |
64,311,868 |
24,513,063 |
38,067,627 |
|
Total Shareholders' Equity |
504,311,868 |
464,513,063 |
478,067,627 |
|
Total Liabilities &
Shareholders' Equity |
1,491,100,253 |
1,371,728,780 |
1,505,890,792 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales & Service
Income |
990,057,738 |
659,319,416 |
895,698,656 |
|
Other Income |
|
|
|
|
Dividend Income |
117,234,700 |
85,238,330 |
80,667,311 |
|
Others |
16,032,114 |
14,397,045 |
12,751,132 |
|
Gain /[Loss on Exchange Rate |
[4,272,908] |
12,843,903 |
[32,032,303] |
|
Total Revenues |
1,119,051,644 |
771,798,694 |
957,084,796 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
741,665,260 |
567,568,417 |
678,006,265 |
|
Administrative Expenses |
110,879,018 |
106,778,444 |
106,922,362 |
|
Total Expenses |
852,544,278 |
674,346,861 |
784,928,627 |
|
|
|
|
|
|
Profit before Financial Cost & Income Tax |
266,507,366 |
97,451,833 |
172,156,169 |
|
Financial Cost |
[44,652,599] |
[43,006,397] |
[37,653,465] |
|
Profit before Income Tax |
221,854,767 |
54,445,436 |
134,502,704 |
|
Income Tax |
[30,800,894] |
- |
[24,348,197] |
|
|
|
|
|
|
Net Profit / [Loss] |
191,053,873 |
54,445,436 |
110,154,507 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.61 |
1.77 |
1.72 |
|
QUICK RATIO |
TIMES |
1.09 |
1.35 |
1.14 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
11.90 |
7.56 |
7.45 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.66 |
0.48 |
0.59 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
22.98 |
7.28 |
1.33 |
|
INVENTORY TURNOVER |
TIMES |
15.89 |
50.13 |
273.95 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
55.61 |
83.63 |
65.56 |
|
RECEIVABLES TURNOVER |
TIMES |
6.56 |
4.36 |
5.57 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
21.29 |
21.74 |
20.19 |
|
CASH CONVERSION CYCLE |
DAYS |
57.31 |
69.17 |
46.71 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
74.91 |
86.08 |
75.70 |
|
SELLING & ADMINISTRATION |
% |
11.20 |
16.20 |
11.94 |
|
INTEREST |
% |
4.51 |
6.52 |
4.20 |
|
GROSS PROFIT MARGIN |
% |
38.12 |
30.98 |
31.16 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
26.92 |
14.78 |
19.22 |
|
NET PROFIT MARGIN |
% |
19.30 |
8.26 |
12.30 |
|
RETURN ON EQUITY |
% |
37.88 |
11.72 |
23.04 |
|
RETURN ON ASSET |
% |
12.81 |
3.97 |
7.31 |
|
EARNING PER SHARE |
BAHT |
4.78 |
1.36 |
2.75 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.66 |
0.66 |
0.68 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.96 |
1.95 |
2.15 |
|
TIME INTEREST EARNED |
TIMES |
5.97 |
2.27 |
4.57 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
50.16 |
(26.39) |
|
|
OPERATING PROFIT |
% |
173.48 |
(43.39) |
|
|
NET PROFIT |
% |
250.91 |
(50.57) |
|
|
FIXED ASSETS |
% |
(4.59) |
(27.47) |
|
|
TOTAL ASSETS |
% |
8.70 |
(8.91) |
|
ANNUAL GROWTH : IMPRESSIVE
An annual sales growth is 50.16%. Turnover has increased from THB
659,319,416.00 in 2011 to THB 990,057,738.00 in 2012. While net profit has
increased from THB 54,445,436.00 in 2011 to THB 191,053,873.00 in 2012. And
total assets has increased from THB 1,371,728,780.00 in 2011 to THB
1,491,100,253.00 in 2012.
PROFITABILITY : IMPRESSIVE
PROFITABILITY RATIO
|
Gross Profit Margin |
38.12 |
Deteriorated |
Industrial Average |
108.52 |
|
Net Profit Margin |
19.30 |
Impressive |
Industrial Average |
7.22 |
|
Return on Assets |
12.81 |
Impressive |
Industrial Average |
9.20 |
|
Return on Equity |
37.88 |
Impressive |
Industrial Average |
17.78 |
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 38.12%. 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 19.3%,
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 12.81%, 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 37.88%, 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 : SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.61 |
Satisfactory |
Industrial Average |
1.87 |
|
Quick Ratio |
1.09 |
|
|
|
|
Cash Conversion Cycle |
57.31 |
|
|
|
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 1.61 times in 2012, decreased from 1.77 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 lower.
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 1.09 times in 2012,
decreased from 1.35 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 58 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.66 |
Acceptable |
Industrial Average |
0.49 |
|
Debt to Equity Ratio |
1.96 |
Risky |
Industrial Average |
0.97 |
|
Times Interest Earned |
5.97 |
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 5.97 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 0.66 greater than 0.5, most of the
company's assets are financed through debt.
Trend of the average competitors in the same industry for last 5 years
Debt Ratio Uptrend
Times Interest Earned Downtrend
ACTIVITY : IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
11.90 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.66 |
Acceptable |
Industrial Average |
1.27 |
|
Inventory Conversion Period |
22.98 |
|
|
|
|
Inventory Turnover |
15.89 |
Impressive |
Industrial Average |
2.31 |
|
Receivables Conversion Period |
55.61 |
|
|
|
|
Receivables Turnover |
6.56 |
Impressive |
Industrial Average |
2.64 |
|
Payables Conversion Period |
21.29 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.56 and 4.36 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 increased from 7 days at the end of 2011 to
23 days at the end of 2012. This represents a negative trend. And Inventory
turnover has decreased from 50.13 times in year 2011 to 15.89 times in year
2012.
The company's Total Asset Turnover is calculated as 0.66 times and 0.48
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.59.15 |
|
|
1 |
Rs.90.05 |
|
Euro |
1 |
Rs.77.06 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.