MIRA INFORM REPORT
|
Report Date : |
05.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
GLOBO
FOODS LTD. |
|
|
|
|
Formerly Known as: |
GRIFFITH
LABORATORIES THAILAND LIMITED |
|
|
|
|
Registered Office : |
482 Moo 1,
Soi Pookmitr, Rodrangkao
Road, T. Samrongtai, A.
Phrapradaeng, Samutprakarn 10130 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
22.07.1974 |
|
|
|
|
Com. Reg. No.: |
0105517008584 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, distributor
and exporter of food
ingredient products are Oriental Seasonings
and desserts, Key ingredients
for fast food
chains, Marinade & coating
system for seafood
and poultry industries, Ingredients for
sausages and ham |
|
|
|
|
No. of Employees : |
500 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Thailand ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand achieved steady growth due largely to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Thailand is trying to maintain growth by encouraging domestic consumption and public investment to offset weak exports in 2012. Unemployment, at less than 1% of the labor force, stands as one of the lowest levels in the world, which puts upward pressure on wages in some industries. Thailand also attracts nearly 2.5 million migrant workers from neighboring countries. The Thai government is implementing a nation-wide 300 baht ($10) per day minimum wage policy and deploying new tax reforms designed to lower rates on middle-income earners. The Thai economy has weathered internal and external economic shocks in recent years. The global economic severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. However, in 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded. In late 2011 growth was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. Industry recovered from the second quarter of 2012 onward with GDP growth at 5.5% in 2012. The government has approved flood mitigation projects worth $11.7 billion, which were started in 2012, to prevent similar economic damage, and an additional $75 billion for infrastructure over the next seven years with a plan to start in 2013.
|
Source : CIA |
Company name
GLOBO FOODS
LTD.
[FORMER
: GRIFFITH LABORATORIES
THAILAND LIMITED]
SUMMARY
BUSINESS
ADDRESS : 482
MOO 1, SOI
POOKMITR, RODRANGKAO ROAD,
T.
SAMRONGTAI, A. PHRAPRADAENG,
SAMUTPRAKARN 10130,
THAILAND
TELEPHONE : [66] 2384-2772,
2384-0036
FAX
: [66] 2384-0817,
2380-3035
E-MAIL
ADDRESS : sales@globofoods.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1974
REGISTRATION
NO. : 0105517008584
TAX
ID NO. : 3101002195
CAPITAL REGISTERED : BHT. 1,000,000
CAPITAL PAID-UP : BHT. 750,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
AKOM PALANUWECH, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 500
LINES
OF BUSINESS : FOOD
INGREDIENT 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 July 22,
1974 as a
private limited company under
the originally registered
name “Griffith
Laboratories Thailand Limited” by Thai groups,
the Palanuwech family.
On February 26,
1999, its registered
name was changed
to GLOBO FOODS
LTD. Its business
objective is to
manufacture and supply
variety of food ingredients
to both domestic
and international markets.
It currently employs
approximately 500 staff.
The
subject’s registered address
was initially located
at 6/1 Soi
Napasap, Sukhumvit Road,
Klongton, Prakanong, Bangkok
10110, while operation
and factory address
was at 129/11
Moo 17, Soi
5/3 Bangplee Industrial
Estate, Teparak Road,
Bangsaothong, Samutprakarn 10540.
On
December 30, 1998,
its registered address
was relocated to 482
Moo 1, Soi
Pookmitr, Rodrangkao Road,
T. Samrongtai, A.
Phrapradaeng, Samutprakarn 10130,
and this is
the subject’s current
operation address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Akom Palanuwech |
[x] |
Thai |
63 |
|
Mrs. Sodsook Palanuwech |
[-] |
Thai |
91 |
|
Mrs. Chuanpis Palanuwech |
|
Thai |
40 |
|
Ms. Arpapimol Palanuwech |
|
Thai |
56 |
|
Ms. Jirin Palanuwech |
|
Thai |
36 |
AUTHORIZED PERSON
Only the mentioned director [x]
signs, or the mentioned
director [-] can
jointly sign with
anyone of the
rest directors on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Akom Palanuwech is
the Managing Director.
He is Thai
nationality with the
age of 63
years old.
Ms. Karuna Yoosamran is
the QA Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing, distributing and
exporting a variety
of food ingredient
products as the
followings:
1.
Oriental Seasonings and
desserts
Food seasoning
and desserts are
under its own
brand “LOBO”. It
currently
has more
than 70 varieties
of the products.
The products have
been marketed by
Diethelm & Co., Ltd.
2. Key ingredients for
fast food chains
Its products
are supplied for
the fast food
restaurants, such as
pizza parlor,
hamburger chain,
steak house, sukiyaki
garden, fried or
roasted chicken outlet,
pancake and
donut shop or
just a small
pop corn stand.
3. Marinade & coating
system for seafood
and poultry industries
With the
own breading line
capable of producing
Japanese crispy flakes
as well as
crunchy western
crumbs. The company
has ability to
deliver value-added
coating systems
to seafood and
poultry industries. Its
products are used
in predust,
milk wash,
batter and breader,
seasoned breading, panko
and tempura batter
mix,
chicken, shrimp,
squid marinades, and
ethnic marinades.
4. Ingredients for sausages
and ham
The company
supplies a variety
of products in
making western sausages,
ham,
bacon, Chinese
sausage, chcken, beef
and pork ball,
etc.
PURCHASE
Most of raw
materials are purchased
from local suppliers,
the remaining is
imported from Republic
of China and
India.
SALES [LOCAL]
80% of the
products is sold
locally by wholesales
to manufacturers and
end-users, as well as
through the authorized
agents.
EXPORT
20% of the
products is exported
to Japan, Republic
of China, Taiwan,
Hong Kong, Malaysia, Indonesia, Vietnam, Laos,
Korea, Myanmar, Australia,
New Zealand, Cambodia,
U.S.A., and the
country in Europe.
RELATED AND AFFILIATED
COMPANY
Prolobo Co., Ltd.
Business Type :
Business management and
consulting services
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 L/C
at sight or
T/T.
Exports are against
T/T.
BANKING
Kasikornbank
Public Co., Ltd.
Bangkok
Bank Public Co., Ltd.
EMPLOYMENT
The
subject currently employs
approximately 500 staff.
LOCATION
DETAILS
The
premise is owned for
administrative office and
factory I at
the heading address.
Premise is located
in provincial, on
the outskirts of
Bangkok.
Factory
II is located
at 19 Moo
2, T. Krasiew, A. Samchuk,
Suphanburi 72130.
Tel. : [66]
35 514-333, Fax. : [66]
35 514-345.
COMMENT
The subject is
a leading manufacturer
of food ingredient
products as well
as food processing
services. With numerous
customers both domestic
and international markets
have led the
company strengthen its
reputation in the
industry.
The products quality and
reliable services have
made the company
ranging on the
top priority among
the leaders in the
industry.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 1,000,000 divided into 10,000 shares of
Bht. 100 each,
with the current
capital paid-up at
Bht. 750,000 or
Bht. 75 per
share.
MAIN
SHAREHOLDERS : [as
at April 25,
2013] at Bht.
750,000 of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Prolobo Co., Ltd. Nationality: Thai Address : 482
Moo 1, Soi
Pookmitr, Rodrangkao Rd., T.
Samrongtai, A. Phrapradaeng,
Samutprakarn 10130 |
4,897 |
48.97 |
|
Mr. Yai Palanuwech Nationality: Thai Address : 6/1
Soi Napasap, Sukhumvit
Rd., Klongton, Prakanong,
Bangkok |
2,400 |
24.00 |
|
Mr. Akom Palanuwech Nationality: Thai Address : 35/250
Soi 5/9, Srinakarin
Rd., T.
Bangkaew, A. Bangplee, Samutprakarn |
1,700 |
17.00 |
|
Mrs. Sodsook Palanuwech Nationality: Thai Address : 35/249 Soi
5/9, Srinakarin Rd., T. Bangkaew, A. Bangplee,
Samutprakarn |
500 |
5.00 |
|
Master Alandorn Palanuwech Nationality: Thai Address : 35/250
Soi 5/9, Srinakarin
Rd., T.
Bangkaew, A. Bangplee, Samutprakarn |
167 |
1.67 |
|
Master Rabin Palanuwech Nationality: Thai Address : 35/250
Soi 5/9, Srinakarin
Rd., T.
Bangkaew, A. Bangplee, Samutprakarn |
167 |
1.67 |
|
Master Kawin Palanuwech Nationality: Thai Address : 35/250
Soi 5/9, Srinakarin
Rd., T.
Bangkaew, A. Bangplee, Samutprakarn |
166 |
1.66 |
|
Mrs. Chuanpis Palanuwech Nationality: Thai Address : 35/250
Soi 5/9, Srinakarin
Rd., T.
Bangkaew, A. Bangplee, Samutprakarn |
1 |
0.01 |
|
Ms. Jirin Palanuwech Nationality: Thai Address : 35/250
Soi 5/9, Srinakarin
Rd., T.
Bangkaew, A. Bangplee, Samutprakarn |
1 |
0.01 |
|
|
|
|
|
Ms. Arpapimol Palanuwech Nationality: Thai Address : 205/140
Mooban Manthana, Soi
23, Moo 10,
Srinakarin Rd., T.
Bangmuang, A. Muang,
Samutprakarn |
1 |
0.01 |
Total Shareholders : 10
Share Structure [as
at April 25,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
10 |
10,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
10 |
10,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Pongtorn Duangpanya No.
3969
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
57,894,665.68 |
85,490,298.39 |
61,768,016.05 |
|
Trade Accounts and
Other Receivable |
157,831,048.57 |
150,201,787.94 |
179,047,548.94 |
|
Inventories |
203,063,257.77 |
188,492,689.87 |
163,486,470.66 |
|
Other Current Assets
|
1,441,022.79 |
920,023.56 |
2,222,517.67 |
|
|
|
|
|
|
Total Current Assets
|
420,229,994.81 |
425,104,799.76 |
406,524,553.32 |
|
Investment Available for Sale |
107,128,893.89 |
97,507,519.27 |
125,657,798.35 |
|
Long-term Lending to Related
Company |
38,900,000.00 |
45,900,000.00 |
41,400,000.00 |
|
Fixed Assets |
465,038,550.28 |
425,283,014.69 |
376,273,888.09 |
|
Intangible Assets |
8,581,358.27 |
10,648,383.91 |
13,642,256.49 |
|
Other Non - current Assets |
557,800.00 |
553,800.00 |
545,800.00 |
|
Total Assets |
1,040,436,597.25 |
1,004,997,517.63 |
964,044,296.25 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts and
Other Payable |
123,424,157.80 |
127,877,807.30 |
112,112,215.29 |
|
Current Portion of
Financial Lease Contract Liabilities
|
2,539,259.42 |
2,354,364.07 |
2,123,682.00 |
|
Accrued Income Tax |
9,004,826.40 |
15,181,337.84 |
307,253.18 |
|
Other Current Liabilities |
- |
- |
1,671,812.72 |
|
|
|
|
|
|
Total Current Liabilities |
134,968,243.62 |
145,413,509.21 |
116,214,963.19 |
|
|
|
|
|
|
Employee Benefits Obligation |
36,091,030.00 |
31,957,462.00 |
- |
|
Financial Lease Contract Liabilities
|
2,139,187.78 |
3,488,152.48 |
3,899,758.00 |
|
Total Liabilities |
173,198,461.40 |
180,859,123.69 |
120,114,721.19 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 10,000 shares |
1,000,000.00 |
1,000,000.00 |
1,000,000.00 |
|
|
|
|
|
|
Capital Paid |
750,000.00 |
750,000.00 |
750,000.00 |
|
Unrealized Gain /[Loss] |
[59,726,321.47] |
[47,828,667.98] |
[2,490,342.14] |
|
Retained Earnings: Appropriated for Statutory Reserve |
75,000.00 |
75,000.00 |
75,000.00 |
|
Unappropriated |
926,139,457.32 |
871,142,061.92 |
845,594,917.20 |
|
Total Shareholders' Equity |
867,238,135.85 |
824,138,393.94 |
843,929,575.06 |
|
Total Liabilities & Shareholders' Equity |
1,040,436,597.25 |
1,004,997,517.63 |
964,044,296.25 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
1,364,601,531.29 |
1,276,988,272.42 |
1,113,175,955.11 |
|
Other Income |
|
|
|
|
Gain on sale of
securities available for-sale |
539,576.69 |
16,667,988.63 |
16,767,993.14 |
|
Other |
18,531,666.02 |
21,998,841.72 |
20,552,925.49 |
|
Total Revenues |
1,383,672,774.00 |
1,315,655,102.77 |
1,150,496,873.74 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,055,874,264.12 |
1,014,823,227.47 |
894,926,088.42 |
|
Selling Expenses |
150,190,217.02 |
121,546,173.99 |
149,127,620.23 |
|
Administrative Expenses |
104,536,969.27 |
100,699,911.41 |
97,755,829.58 |
|
Other Expenses |
69,124.20 |
- |
- |
|
Total Expenses |
1,310,670,574.61 |
1,237,069,312.87 |
1,141,809,538.23 |
|
|
|
|
|
|
Profit before Financial Cost & Income
Tax |
73,002,199.39 |
78,585,789.90 |
8,687,335.51 |
|
Financial Costs |
[266,307.50] |
[54,998.21] |
[93.57] |
|
Profit / [Loss] before Income
Tax |
72,735,891.89 |
78,039,791.69 |
8,687,241.94 |
|
Income Tax |
[17,738,496.49] |
[25,176,628.97] |
[1,848,118.01] |
|
|
|
|
|
|
Net Profit / [Loss] |
54,997,395.40 |
52,863,162.72 |
6,839,123.93 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
3.11 |
2.92 |
3.50 |
|
QUICK RATIO |
TIMES |
1.60 |
1.62 |
2.07 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.93 |
3.00 |
2.96 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.31 |
1.27 |
1.15 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
70.20 |
67.79 |
66.68 |
|
INVENTORY TURNOVER |
TIMES |
5.20 |
5.38 |
5.47 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
42.22 |
42.93 |
58.71 |
|
RECEIVABLES TURNOVER |
TIMES |
8.65 |
8.50 |
6.22 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
42.67 |
45.99 |
45.73 |
|
CASH CONVERSION CYCLE |
DAYS |
69.75 |
64.73 |
79.66 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
77.38 |
79.47 |
80.39 |
|
SELLING & ADMINISTRATION |
% |
18.67 |
17.40 |
22.18 |
|
INTEREST |
% |
0.02 |
0.00 |
0.00 |
|
GROSS PROFIT MARGIN |
% |
24.02 |
23.56 |
22.96 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.35 |
6.15 |
0.78 |
|
NET PROFIT MARGIN |
% |
4.03 |
4.14 |
0.61 |
|
RETURN ON EQUITY |
% |
6.34 |
6.41 |
0.81 |
|
RETURN ON ASSET |
% |
5.29 |
5.26 |
0.71 |
|
EARNING PER SHARE |
BAHT |
7,332.99 |
7,048.42 |
911.88 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.17 |
0.18 |
0.12 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.20 |
0.22 |
0.14 |
|
TIME INTEREST EARNED |
TIMES |
274.13 |
1,428.88 |
92,843.17 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
6.86 |
14.72 |
|
|
OPERATING PROFIT |
% |
(7.11) |
804.60 |
|
|
NET PROFIT |
% |
4.04 |
672.95 |
|
|
FIXED ASSETS |
% |
9.35 |
13.02 |
|
|
TOTAL ASSETS |
% |
3.53 |
4.25 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 6.86%. Turnover has increased from THB 1,276,988,272.42
in 2011 to THB 1,364,601,531.29 in 2012. While net profit has increased from
THB 52,863,162.72 in 2011 to THB 54,997,395.40 in 2012. And total assets has
increased from THB 1,004,997,517.63 in 2011 to THB 1,040,436,597.25 in 2012.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
24.02 |
Acceptable |
Industrial Average |
34.82 |
|
Net Profit Margin |
4.03 |
Deteriorated |
Industrial Average |
10.76 |
|
Return on Assets |
5.29 |
Deteriorated |
Industrial Average |
12.61 |
|
Return on Equity |
6.34 |
Deteriorated |
Industrial Average |
18.78 |
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 24.02%. 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 4.03%.
When compared with the industry average, the ratio of the company was lower.
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. When compared with the
industry average, it was lower, the company's figure is 5.29%.
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. When compared with the
industry average, it was lower, the company's figure is 6.34%.
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 |
3.11 |
Impressive |
Industrial
Average |
3.02 |
|
Quick Ratio |
1.60 |
|
|
|
|
Cash Conversion Cycle |
69.75 |
|
|
|
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 3.11 times in 2012, increased from 2.92 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 1.6 times in 2012,
decreased from 1.62 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 70 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.17 |
Impressive |
Industrial
Average |
0.30 |
|
Debt to Equity Ratio |
0.20 |
Impressive |
Industrial
Average |
0.49 |
|
Times Interest Earned |
274.13 |
Impressive |
Industrial
Average |
4.34 |
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 274.13 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 0.17 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 |
2.93 |
Impressive |
Industrial
Average |
0.87 |
|
Total Assets Turnover |
1.31 |
Impressive |
Industrial
Average |
1.27 |
|
Inventory Conversion Period |
70.20 |
|
|
|
|
Inventory Turnover |
5.20 |
Satisfactory |
Industrial
Average |
6.40 |
|
Receivables Conversion Period |
42.22 |
|
|
|
|
Receivables Turnover |
8.65 |
Impressive |
Industrial
Average |
4.55 |
|
Payables Conversion Period |
42.67 |
|
|
|
The company's Account Receivable Ratio is calculated as 8.65 and 8.50 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 68 days at the
end of 2011 to 70 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 5.38 times in year 2011 to 5.2 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.31 times and 1.27
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 Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.09 |
|
UK Pound |
1 |
Rs.91.58 |
|
Euro |
1 |
Rs.78.08 |
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.