MIRA
INFORM REPORT
|
Report Date : |
13.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
FORMICA [THAILAND] CO., LTD. |
|
|
|
|
Formerly Known As : |
SIAM PSM CO., LTD |
|
|
|
|
Registered Office : |
51/27 Moo 2, Poochaosamingprai Road, Bangyapraek, Phrapradaeng Samutprakarn 10130 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
30.06.2012 |
|
|
|
|
Date of Incorporation : |
15.03.1989 |
|
|
|
|
Com. Reg. No.: |
0115532000866 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Exporter and Distributor of High Pressure Decorative Laminates and Related Products |
|
|
|
|
No. of Employees : |
300 |
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 |
|
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
FORMICA
[THAILAND] CO., LTD.
[FORMER
: SIAM PSM
CO., LTD.]
SUMMARY
BUSINESS
ADDRESS : 51/27
MOO 2, POOCHAOSAMINGPRAI ROAD,
BANGYAPRAEK, PHRAPRADAENG,
SAMUTPRAKARN 10130,
THAILAND
TELEPHONE : [66] 2755-8525,
2701-9600
FAX :
[66] 2384-7537,
2755-9245
E-MAIL
ADDRESS : formicainfo@formica.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1989
REGISTRATION
NO. : 0115532000866 [Former : SOR POR. 1477]
TAX
ID NO. : 3271019801
CAPITAL REGISTERED : BHT. 199,150,000
CAPITAL PAID-UP : BHT.
199,150,000
SHAREHOLDER’S PROPORTION : THAI :
5%
FOREIGN :
95%
FISCAL YEAR CLOSING DATE : JUNE
30
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. CHENG-LIN FRED
WANG, TAIWANESE
MANAGING DIRECTOR
NO.
OF STAFF : 300
LINES
OF BUSINESS : HIGH
PRESSURE DECORATIVE LAMINATES
AND RELATED
PRODUCTS
MANUFACTURER, EXPORTER 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 March
15, 1989 as
a private limited
company under the
registered name “Siam
Perstorp Co., Ltd.” by a
joint venture between
Siam Steel International
Public Co., Ltd. and Perstorp Surface Materials Holding
B.V. in Netherlands,
in order to
manufacture high pressure
decorative laminates and
related products to
both local and
overseas markets.
The Formica Corporation acquired
Siam Perstorp in early 2000.
Formica Corporation grew
into the world’s
largest laminate manufacturer.
It has regional
offices in America,
Europe and Asia. On
March 13, 2001
the subject’s name
was changed to
SIAM PSM CO.,
LTD., and finally
changed to FORMICA
[THAILAND] CO., LTD.,
on June 19,
2008. The subject
currently employs approximately
300 staff.
At present, it
is a subsidiary
of Formica Nederland
B.V., Netherlands, which
is a member
of Fletcher Building
Limited, in New
Zealand.
The subject also
attained ISO 9002 certificates.
Subject’s registered address is 51/27 Moo 2, Poochaosamingprai Rd.,
Bangyapraek, Phrapradaeng, Samutprakarn 10130, and this
is the company’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Wanchai Kunanantakul |
|
Thai |
75 |
|
Ms. Somjit Mahacharoenkiat |
[x] |
Thai |
50 |
|
Mr. Daw Huei
Wang |
|
Taiwanese |
64 |
|
Mr. Cheng-Lin Fred
Wang |
[x] |
Taiwanese |
55 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Cheng-Lin Fred Wang
is the Managing
Director.
He is Taiwanese
nationality with the
age of 55 years
old.
Ms. Somjit Mahacharoenkiat is
the Executive Director.
She is Thai
nationality.
Mrs. Songklod Limboonyaprasert is
the Account &
Financial Controller.
She is Thai
nationality.
Mr. Kijakarn Thipawan
is the Sales
Manager.
He is Thai nationality.
Mr. Manus Thalachai is
the Exports Manager.
He is Thai
nationality.
Mr. Jarmo Laine
is the Manufacturing
Manager.
He is Finn
nationality.
Mr. Chatchai Chevitanon
is the Product
Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing laminates
and related products,
such as decorative
laminated sheet and
board. Its products
included high pressure
decorative laminates and
related products including Postformed Components [PERFORM],
Custom Graphic laminate
[IMPRESS], Chemical Resistant
Worktops [PERCHEMICAL], Metallic
Laminate [PERMETAL], Laminate
Flooring [Formica Flooring] and
Solid Surfacing [Formica
SURELL] with more than 264
colours and designs.
Its products are
used mainly for
kitchen furniture, office
furniture and home
furniture, as well
as interior and
exterior surfaces in the construction
business.
MAJOR BRAND
“FORMICA”
PRODUCTION CAPACITY
2,500,000 sheets per
annum
IMPORT [COUNTRIES]
40% of its
raw materials: craft
paper, decor paper
and accessories are
imported from Hong
Kong, Taiwan, Republic
of China, Japan,
Germany, Spain, Netherlands
and United Kingdom.
SALES [LOCAL]
80% of its
products is sold
locally to manufacturers, wholesalers
and end-users.
EXPORT [COUNTRY]
20% of its
products mainly laminate
boards is exported
to Singapore, Sri Lanka,
Philippines, Japan, Malaysia,
Indonesia, Taiwan, Australia,
New Zealand and
Korea.
MAJOR CUSTOMERS
|
Saeng Charoen Housing
Products Co., Ltd. |
: Thailand |
|
Hub Mong Heng
LP. |
: Thailand |
|
Lak Charoen LP. |
: Thailand |
|
C. Sriratana LP. |
: Thailand |
|
Nanadee Co., Ltd. |
: Thailand |
|
Home Products Center
Co., Ltd. |
: Thailand |
|
Siripanichpong LP. |
: Thailand |
|
Sahadamrong Panich LP. |
: Thailand |
|
Dec & House
Co., Ltd. |
: Thailand |
|
Rungsombat [2528] Co.,
Ltd. |
: Thailand |
|
First Board Co.,
Ltd. |
: 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
Sales are on
the credits term
of 30-60-90 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T on
the credits term
of 30-60 days.
Exports are against
L/C at sight
or T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Poochaosamingprai Branch
: 298 Poochaosamingprai Rd.,
Phrapradaeng,
Samutprakarn]
EMPLOYMENT
The subject employs
approximately 300 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is
owned for administrative office,
factory I and warehouse
at the heading
address. Premise is
located in industrial
area.
Factory II is
located at 51/11
Moo 18, Bangyapraek, Phrapradaeng, Samutprakarn
10130. Tel.: [66] 2755-8525.
Factory III is
located at 225/6
Moo 8, Samrongklang,
Phrapradaeng, Samutprakarn 10130.
Tel. : [66] 2755-8525.
Sales office is located at 15th Floor,
LPN Tower, 216/63
Nanglinchi Rd., Chongnonsi,
Yannawa, Bangkok 10120.
COMMENT
The subject tried to
differentiate its products in term of designs and quality in
order to compete with imported laminated
products. The strengthen of
production and high technology processing
have enabled the company’s products to penetrate various industries in the large area.
Currently more than 50% of its customers are for high-end products
such as leading manufacture
of furnitures, decoration
and construction process
as well as automobile
decorative parts.
Current market situation for construction and decoration
related products are promising from economy
recovery. The subject
anticipates an increase in
number of orders
from market expansion
in abroad this year.
Generally, its business
is solid and
growing steadily.
FINANCIAL INFORMATION
The capital was
registered at Bht.
100,000 divided into
1,000 shares of
Bht. 100 each.
The capital was
increased later as
followings:
Bht. 175,000,000
on May 31,
1989
Bht. 199,150,000
on May 22,
1998
The latest registered
capital was increased
to Bht. 199,150,000 divided
into 1,991,500 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED
WERE : [as
at October 26,
2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Formica Nederland BV. Nationality: Dutch Address : Netherlands |
1,891,921 |
95.00 |
|
Siam Steel International Public
Co., Ltd. Nationality: Thai Address : 51
Moo 2, Poochaosamingprai Rd.,
Bangyapraek, Phrapradaeng, Samutprakarn |
99,574 |
5.00 |
|
Formica Skandinavien AB. Nationality: Swedish Address : Sweden |
3 |
|
Mr. Wanchai Kunanantakul
Nationality: Thai Address : 410
Sukhumvit Rd., Klongton,
Klongtoey, Bangkok |
1 |
- |
Mr. Surapol Kunanantakul
Nationality: Thai Address : 149 Moo 9,
Bangna-Trad Rd., Dokmai,
Praves, Bangkok |
1 |
- |
Total Shareholders : 5
Share Structure [as
at October 26,
2012]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
99,576 |
5.00 |
|
Foreign |
2 |
1,891,924 |
95.00 |
|
Total |
5 |
1,991,500 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms.
Bongkoch Amsangiam No.
3684
BALANCE SHEET [BAHT]
The
latest financial figures
published for June
30, 2012, 2011
and 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash in Hand
& at Bank |
50,414,873 |
30,579,860 |
128,468,286 |
|
Trade Accounts Receivable |
231,284,731 |
209,795,133 |
184,852,154 |
|
Other Receivable |
3,452,260 |
3,049,938 |
- |
|
Inventories |
261,993,877 |
220,848,968 |
194,626,471 |
|
Other Current Assets
|
9,556,711 |
10,581,580 |
11,720,857 |
|
|
|
|
|
|
Total Current Assets
|
556,702,452 |
474,855,479 |
519,667,768 |
|
Long-term Loan to Related Company |
144,144,319 |
95,000,000 |
- |
|
Fixed Assets |
147,304,226 |
145,999,690 |
135,013,214 |
|
Other Non-current Assets |
9,436,950 |
10,375,031 |
10,399,639 |
|
Total Assets |
857,587,947 |
726,230,200 |
665,080,621 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft |
- |
15,406,639 |
- |
|
Trade Accounts Payable |
106,508,525 |
71,449,391 |
78,894,049 |
|
Other payable |
58,244,440 |
58,908,835 |
- |
|
Accrued Income Tax |
41,452,142 |
42,713,880 |
31,381,843 |
|
Other Current Liabilities |
18,477,649 |
5,950,027 |
77,577,672 |
|
|
|
|
|
|
Total Current Liabilities |
224,682,756 |
194,428,772 |
187,853,564 |
|
Employee Benefits Obligation |
11,730,000 |
- |
- |
|
Total Liabilities |
236,412,756 |
194,428,772 |
187,853,564 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,991,500 shares |
199,150,000 |
199,150,000 |
199,150,000 |
|
|
|
|
|
|
Capital Paid |
199,150,000 |
199,150,000 |
199,150,000 |
|
Premium on Share Capital |
25,840,500 |
25,840,500 |
25,840,500 |
|
Retained Earning Appropriated for
Statutory Reserve |
19,915,000 |
19,915,000 |
19,915,000 |
|
Unappropriated |
376,269,691 |
286,895,928 |
232,321,557 |
|
Total Shareholders' Equity |
621,175,191 |
531,801,428 |
477,227,057 |
|
Total Liabilities &
Shareholders' Equity |
857,587,947 |
726,230,200 |
665,080,621 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
1,258,437,579 |
1,118,138,022 |
1,048,190,499 |
|
Investment Income |
5,846,030 |
734,778 |
- |
|
Other Income |
5,311,836 |
1,472,630 |
6,896,972 |
|
Total Revenues |
1,269,595,445 |
1,120,345,430 |
1,055,087,471 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
769,958,917 |
671,105,921 |
643,724,073 |
|
Selling Expenses |
135,659,134 |
123,022,509 |
138,351,675 |
|
Administrative Expenses |
82,145,228 |
96,385,525 |
114,693,991 |
|
Total Expenses |
987,763,279 |
890,513,955 |
896,769,739 |
|
|
|
|
|
|
Profit / [Loss] before Interest
Expenses & Income Tax |
281,832,166 |
229,831,475 |
158,317,732 |
|
Interest Expenses |
[128,878] |
[98,162] |
[52,519] |
|
Profit / [Loss] before Income Tax |
281,703,288 |
229,831,475 |
158,265,213 |
|
Income Tax |
[82,797,025] |
[75,583,942] |
[58,189,953] |
|
|
|
|
|
|
Net Profit / [Loss] |
198,906,263 |
154,149,371 |
100,075,260 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.48 |
2.44 |
2.77 |
|
QUICK RATIO |
TIMES |
1.27 |
1.25 |
1.67 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
8.54 |
7.66 |
7.76 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.47 |
1.54 |
1.58 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
124.20 |
120.11 |
110.36 |
|
INVENTORY TURNOVER |
TIMES |
2.94 |
3.04 |
3.31 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
67.08 |
68.48 |
64.37 |
|
RECEIVABLES TURNOVER |
TIMES |
5.44 |
5.33 |
5.67 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
50.49 |
38.86 |
44.73 |
|
CASH CONVERSION CYCLE |
DAYS |
140.79 |
149.74 |
129.99 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
61.18 |
60.02 |
61.41 |
|
SELLING & ADMINISTRATION |
% |
17.31 |
19.62 |
24.14 |
|
INTEREST |
% |
0.01 |
0.01 |
0.01 |
|
GROSS PROFIT MARGIN |
% |
39.70 |
40.18 |
39.25 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
22.40 |
20.55 |
15.10 |
|
NET PROFIT MARGIN |
% |
15.81 |
13.79 |
9.55 |
|
RETURN ON EQUITY |
% |
32.02 |
28.99 |
20.97 |
|
RETURN ON ASSET |
% |
23.19 |
21.23 |
15.05 |
|
EARNING PER SHARE |
BAHT |
99.88 |
77.40 |
50.25 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.28 |
0.27 |
0.28 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.38 |
0.37 |
0.39 |
|
TIME INTEREST EARNED |
TIMES |
2,186.81 |
2,341.35 |
3,014.48 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
12.55 |
6.67 |
|
|
OPERATING PROFIT |
% |
22.63 |
45.17 |
|
|
NET PROFIT |
% |
29.03 |
54.03 |
|
|
FIXED ASSETS |
% |
0.89 |
8.14 |
|
|
TOTAL ASSETS |
% |
18.09 |
9.19 |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 12.55%. Turnover has increased from THB 1,118,138,022.00
in 2011 to THB 1,258,437,579.00 in 2012. While net profit has increased from
THB 154,149,371.00 in 2011 to THB 198,906,263.00 in 2012. And total assets has
increased from THB 726,230,200.00 in 2011 to THB 857,587,947.00 in 2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
39.70 |
Impressive |
Industrial
Average |
29.56 |
|
Net Profit Margin |
15.81 |
Impressive |
Industrial
Average |
2.51 |
|
Return on Assets |
23.19 |
Impressive |
Industrial
Average |
3.23 |
|
Return on Equity |
32.02 |
Impressive |
Industrial
Average |
6.75 |
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
39.7%. 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 15.81%,
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
23.19%, 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 32.02%, 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 :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
2.48 |
Impressive |
Industrial
Average |
1.34 |
|
Quick Ratio |
1.27 |
|
|
|
|
Cash Conversion Cycle |
140.79 |
|
|
|
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 2.48 times in 2012, increase from 2.44 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 1.27 times in 2012,
increase from 1.25 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 141 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.28 |
Impressive |
Industrial
Average |
0.52 |
|
Debt to Equity Ratio |
0.38 |
Impressive |
Industrial
Average |
1.05 |
|
Times Interest Earned |
2,186.81 |
Impressive |
Industrial
Average |
1.01 |
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 2186.82 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 0.28 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 |
8.54 |
Impressive |
Industrial
Average |
0.53 |
|
Total Assets Turnover |
1.47 |
Impressive |
Industrial
Average |
1.26 |
|
Inventory Conversion Period |
124.20 |
|
|
|
|
Inventory Turnover |
2.94 |
Deteriorated |
Industrial
Average |
6.07 |
|
Receivables Conversion Period |
67.08 |
|
|
|
|
Receivables Turnover |
5.44 |
Impressive |
Industrial
Average |
2.87 |
|
Payables Conversion Period |
50.49 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.44 and 5.33 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 120 days at the
end of 2011 to 124 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 3.04 times in year 2011 to 2.94 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.47 times and 1.54
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.59.89 |
|
|
1 |
Rs.90.88 |
|
Euro |
1 |
Rs.78.32 |
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.