MIRA
INFORM REPORT
|
Report Date : |
03.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
CHIA MENG CO., LTD. |
|
|
|
|
Registered Office : |
119 Moo 8, T. Nongnguluem, Chalermprakiat, Nakornratchasima 30000 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
06.09.1993 |
|
|
|
|
Com. Reg. No.: |
0105536101675 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Distributor and Exporter of Rice Products Rice Mill |
|
|
|
|
No. of Employees : |
500 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
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
CHIA MENG CO.,
LTD.
SUMMARY
BUSINESS ADDRESS : 119 MOO 8, T.
NONGNGULUEM,
CHALERMPRAKIAT,
NAKORNRATCHASIMA 30000
TELEPHONE : [66] 44
207-080-5
FAX : [66] 44
207-339
E-MAIL ADDRESS : chiameng@chiameng-rice.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1993
REGISTRATION NO. : 0105536101675
TAX ID NO. : 3301006917
CAPITAL REGISTERED : BHT.
172,600,000
CAPITAL PAID-UP : BHT.
172,600,000
SHAREHOLDER’S PROPORTION : THAI
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MRS.
PRAPIS MANATHANYA, THAI
MANAGING DIRECTOR
NO. OF STAFF : 500
LINES OF BUSINESS : RICE
PRODUCTS
RICE MILL,
DISTRIBUTOR AND EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was
established on September
6, 1993 as
a private limited
company under the name
style CHIA MENG
CO., LTD. by
Thai group, the
Manathanya family. Its
business objective is
engaged in rice
mill and trading
business in both domestic
and international markets.
It currently employs
approximately 500 staff.
In October 2011,
the subject’s rice
mill in Ayutthaya
province stopped its
activity temporarily due to heavy
flood crisis in
Thailand. However, it was resumed
activity in January
2012.
The subject’s registered
address is 119
Moo 8, T. Nongnguluem, A. Chalermprakiat, Nakornratchasima 30000,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Prapis Manathanya |
|
Thai |
61 |
|
Mr. Olarn Manathanya |
|
Thai |
30 |
|
Ms. Prapaiwal Thienkham
[Manathanya] |
|
Thai |
28 |
Note:
Ms. Prapaiwal Thienkham changed
her last name
from “Manathanya” to
“Thienkham” on January
10, 2011.
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mrs. Prapis Manathanya
is the Managing
Director.
She is Thai
nationality with the
age of 61
years old.
Mr. Narin Intraprasert is
the Sales &
Marketing Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in rice
mill business, as
well as distributing and exporting various kinds
of rice products,
such as Thai
Jasmine Rice, Thai-Pathumthani Fragrant
Rice, Thai White
Rice, Thai Black and White Glutinous
Rice [sticky rice], Thai Long
Grain Red Cargo Rice,
Thai White Broken Rice
Special, Thai Parboiled
Rice, Jasmine Germ Rice, Jasmine
Mixed Cargo Rice,
Thai Jasmine Broken
Rice Special, Jasmine
Red Cargo Rice
and etc., under
its own brands “GOLDEN
PHOENIX”, “Q-RICE”, and “GOLDEN
CRANE”.
PRODUCTION CAPACITY
20,000-30,000 tons/month
PURCHASE
100% of paddy
is purchased from
local farmers and
traders.
SALES
The products are
sold by wholesale
to clients both
local and overseas,
in which 80%
is exported to
U.S.A., Australia, Indonesia,
Singapore, Malaysia, Hong Kong,
Canada, Republic of
China, Japan and
the countries in
Europe, and Africa,
the remaining 20%
is sold locally.
The “GOLDEN PHOENIX” products
have been distributed
locally by Chia Meng Marketing
Co., Ltd., the subject’s related company.
RELATED AND AFFILIATED COMPANIES
Chia Meng Marketing
Co., Ltd.
Business Type :
Distributor and exporter
of rice products.
Bangsue Chia Meng
Rice Mill Co.,
Ltd.
Business Type :
Rice mill business.
LITIGATION
Bankruptcy and Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the
subject found at
Legal Execution Department
for the past
five years.
Others
There are no
legal suits filed
against the subject
for the past
two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
Kasikornbank Public Co.,
Ltd.
Krung Thai Bank
Public Co., Ltd.
EMPLOYMENT
The subject employs
approximately 500 office
staff and workers.
LOCATION DETAILS
The premise is
owned for administrative office and
rice mill I at the
heading address. Premise
is located in
provincial.
The rice mill
II is located
at 111 Moo
15, T. Salaloi, A. Tharua,
Ayutthaya 13130.
Sales office is
located at 18/20
Nonthaburi 1 Rd.,
T. Bangkrasor, A. Muang, Nonthaburi
11000. Tel.: [66] 2527-3888,
Fax: [66] 2527-2233.
COMMENT
As a result of endeavor and consistency in honest business conduct, the
company has been growing continuously and steadily. In order to meet rising demand of consumers,
it has expanded production capacity by securing access to diverse sources of
raw material. The company also developed
its ability to transport large quantity of the product within limited
time by providing appropriate
machine and technology.
Overall exports of Thai
rice would decline
from the previous year, which
it estimated that
Thai rice would be no.
3 exporter following
No. 1 India and No. 2 Vietnam. Nevertheless,
the subject would
remain the leading
exporter in Thailand.
NOTE
Refer to your
given name “Chia
Meng Rice Co.,
Ltd.”, please be informed
that the correct
name is “Chia
Meng Co., Ltd.”.
FINANCIAL INFORMATION
The capital was
registered at Bht. 40,000,000 divided
into 4,000,000 shares
of Bht. 10
each with fully
paid.
The capital was
increased later as
follows:
Bht. 70,000,000
on April 28,
1994
Bht. 140,000,000
on July
26, 2002
Bht. 172,600,000
on May
27, 2005
The latest registered
capital was increased
to Bht. 172.60 million, divided
into 17,260,000 shares of
Bht. 10 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE
[as at
June 15, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Prapis Manathanya Nationality: Thai Address :
124/130 Moo 3,
T. Saima, A. Muang, Nonthaburi |
8,802,600 |
51.00 |
|
Bangsue Chia Meng
Rice Mill Co.,
Ltd. Nationality: Thai Address : 102
Moo 4, Soi
Rimtangrodfaibangsue,
Bangsue, Bangkok |
3,279,400 |
19.00 |
|
Mr. Olarn Manathanya Nationality: Thai Address : 333
Moo 8, T. Nongnguluem, A.
Chalermprakiat, Nakornratchasima |
1,726,000 |
10.00 |
|
Ms. Prapaiwal Thienkham Nationality: Thai Address : 124/113
Moo 3, T. Saima,
A. Muang, Nonthaburi |
1,726,000 |
10.00 |
|
Ms. Prapaiphan Manathanya Nationality: Thai Address : 99
Moo 15, T. Salaloy, A. Tharua,
Ayutthaya |
1,726,000 |
10.00 |
Total Shareholders : 5
Share Structure
[as at June
15, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
17,260,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
5 |
17,260,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Ms. Maliwan Pahuwattanakorn No. 4701
Note:
The 2012 financial
statement was not
available during investigation.
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash and Cash Equivalents |
12,330,224 |
8,720,126 |
32,926,988 |
|
Short-term Investment |
17,260,000 |
- |
- |
|
Trade Accounts Receivable
|
596,733,917 |
1,086,196,418 |
888,221,822 |
|
Other Receivable |
36,637,676 |
98,802,025 |
- |
|
Inventories |
2,713,702,894 |
2,922,136,899 |
2,057,462,898 |
|
Deferred Services |
- |
- |
7,157,121 |
|
Advance Payment on Goods |
- |
- |
17,271,094 |
|
Other Current Assets
|
6,538,868 |
4,704,134 |
21,900,444 |
|
|
|
|
|
|
Total Current Assets
|
3,383,203,579 |
4,120,559,602 |
3,024,940,367 |
|
Investment in Subsidiaries |
26,399,982 |
26,399,982 |
26,399,982 |
|
Other Long-term Investment |
5,572,000 |
5,572,000 |
5,572,000 |
|
Fixed Assets |
1,053,077,330 |
1,497,742,273 |
1,582,438,125 |
|
Intangible Assets |
14,091,110 |
12,643,064 |
11,233,235 |
|
Cash at Bank pledged as
a Collateral |
- |
17,260,000 |
- |
|
Other Non - current Assets |
3,796,226 |
2,451,506 |
2,451,506 |
|
Total Assets |
4,486,140,227 |
5,682,628,427 |
4,653,035,215 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
3,444,192,584 |
3,735,217,899 |
3,226,706,522 |
|
Trade Accounts Payable
|
218,983,038 |
680,572,701 |
357,640,936 |
|
Other Payable |
70,808,691 |
216,301,272 |
33,552,360 |
|
Current Portion of
Long-term Liabilities |
52,220,000 |
37,331,442 |
49,850,139 |
|
Current Portion of
Financial Lease Contract
Liabilities |
2,299,683 |
1,540,866 |
476,918 |
|
Short-term Loan from Person
or Related Company |
- |
- |
34,916,682 |
|
Accrued Expenses |
- |
- |
26,268,315 |
|
Pre-received Goods |
- |
- |
1,852,901 |
|
Other Current Liabilities |
9,135,033 |
8,452,462 |
798,423 |
|
|
|
|
|
|
Total Current Liabilities |
3,797,639,029 |
4,679,416,642 |
3,732,063,196 |
|
Long-term Loan from Financial Institutions |
119,726,169 |
71,946,169 |
111,881,442 |
|
Financial Lease Contract
Liabilities |
3,338,592 |
4,150,203 |
387,581 |
|
Employee Benefits Obligation |
10,635,043 |
- |
- |
|
Total Liabilities |
3,931,338,833 |
4,755,513,014 |
3,844,332,219 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 17,260,000 shares |
172,600,000 |
172,600,000 |
172,600,000 |
|
|
|
|
|
|
Capital Paid |
172,600,000 |
172,600,000 |
172,600,000 |
|
Retained Earnings: Appropriated for Statutory Reserve |
17,260,000 |
17,260,000 |
17,260,000 |
|
Unappropriated |
364,941,394 |
330,598,449 |
178,134,786 |
|
Surplus on Revaluation
of Assets |
- |
406,656,964 |
440,708,210 |
|
Total Shareholders' Equity |
554,801,394 |
927,115,413 |
808,702,996 |
|
Total Liabilities &
Shareholders' Equity |
4,486,140,227 |
5,682,628,427 |
4,653,035,215 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales & Services Income |
7,406,159,117 |
6,878,395,187 |
8,053,536,827 |
|
Interest Income |
- |
- |
240,068 |
|
Other Income |
83,641,267 |
43,458,144 |
15,088,265 |
|
Total Revenues |
7,489,800,384 |
6,921,853,331 |
8,068,865,160 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
6,789,259,595 |
6,278,272,683 |
7,470,807,630 |
|
Selling Expenses |
284,403,163 |
264,369,520 |
289,964,663 |
|
Administrative Expenses |
77,981,810 |
50,376,980 |
63,478,753 |
|
Doubtful Debts |
98,185,010 |
- |
- |
|
Loss on Exchange Rate |
- |
- |
7,613,434 |
|
Total Expenses |
7,249,829,578 |
6,593,019,183 |
7,831,864,480 |
|
Profit before Financial Cost |
239,970,806 |
328,834,148 |
237,000,680 |
|
Financial Cost |
[195,410,024] |
[176,370,485] |
[182,212,000] |
|
|
|
|
|
|
Net Profit / [Loss] |
44,560,782 |
152,463,663 |
54,788,680 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.89 |
0.88 |
0.81 |
|
QUICK RATIO |
TIMES |
0.17 |
0.26 |
0.25 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.03 |
4.59 |
5.09 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.65 |
1.21 |
1.73 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
145.89 |
169.88 |
100.52 |
|
INVENTORY TURNOVER |
TIMES |
2.50 |
2.15 |
3.63 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
29.41 |
57.64 |
40.26 |
|
RECEIVABLES TURNOVER |
TIMES |
12.41 |
6.33 |
9.07 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
11.77 |
39.57 |
17.47 |
|
CASH CONVERSION CYCLE |
DAYS |
163.53 |
187.96 |
123.30 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.67 |
91.28 |
92.76 |
|
SELLING & ADMINISTRATION |
% |
4.89 |
4.58 |
4.39 |
|
INTEREST |
% |
2.64 |
2.56 |
2.26 |
|
GROSS PROFIT MARGIN |
% |
9.46 |
9.36 |
7.43 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.24 |
4.78 |
2.94 |
|
NET PROFIT MARGIN |
% |
0.60 |
2.22 |
0.68 |
|
RETURN ON EQUITY |
% |
8.03 |
16.44 |
6.77 |
|
RETURN ON ASSET |
% |
0.99 |
2.68 |
1.18 |
|
EARNING PER SHARE |
BAHT |
2.58 |
8.83 |
3.17 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.88 |
0.84 |
0.83 |
|
DEBT TO EQUITY RATIO |
TIMES |
7.09 |
5.13 |
4.75 |
|
TIME INTEREST EARNED |
TIMES |
1.23 |
1.86 |
1.30 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
7.67 |
(14.59) |
|
|
OPERATING PROFIT |
% |
(27.02) |
38.75 |
|
|
NET PROFIT |
% |
(70.77) |
178.28 |
|
|
FIXED ASSETS |
% |
(29.69) |
(5.35) |
|
|
TOTAL ASSETS |
% |
(21.06) |
22.13 |
|
ANNUAL GROWTH : RISKY
An annual sales growth is 7.67%. Turnover has increased from THB
6,878,395,187.00 in 2010 to THB 7,406,159,117.00 in 2011. While net profit has
decreased from THB 152,463,663.00 in 2010 to THB 44,560,782.00 in 2011. And
total assets has decreased from THB 5,682,628,427.00 in 2010 to THB 4,486,140,227.00
in 2011.
PROFITABILITY : SATISFACTORY
PROFITABILITY RATIO
|
Gross Profit Margin |
9.46 |
Impressive |
Industrial Average |
3.27 |
|
Net Profit Margin |
0.60 |
Satisfactory |
Industrial Average |
0.74 |
|
Return on Assets |
0.99 |
Acceptable |
Industrial Average |
1.79 |
|
Return on Equity |
8.03 |
Satisfactory |
Industrial Average |
8.35 |
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 9.46%. When
compared with the industry average, the ratio of the company was higher,
indicated that company was more profitable than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company's figure is 0.6%. 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 0.99%.
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 8.03%.
Trend of the average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.89 |
Risky |
Industrial Average |
0.92 |
|
Quick Ratio |
0.17 |
|
|
|
|
Cash Conversion Cycle |
163.53 |
|
|
|
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 0.89 times in 2011, increased from 0.88 times, then the company may
have problems meeting its short-term obligations. 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 0.17 times in 2011,
decreased from 0.26 times, then the company has not enough current assets that
presumably can be quickly converted to cash for pay financial obligations.
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 164 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.88 |
Acceptable |
Industrial Average |
0.84 |
|
Debt to Equity Ratio |
7.09 |
Risky |
Industrial Average |
5.13 |
|
Times Interest Earned |
1.23 |
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 1.23 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 0.88 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 : SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
7.03 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.65 |
Acceptable |
Industrial Average |
2.43 |
|
Inventory Conversion Period |
145.89 |
|
|
|
|
Inventory Turnover |
2.50 |
Acceptable |
Industrial Average |
4.09 |
|
Receivables Conversion Period |
29.41 |
|
|
|
|
Receivables Turnover |
12.41 |
Impressive |
Industrial Average |
3.09 |
|
Payables Conversion Period |
11.77 |
|
|
|
The company's Account Receivable Ratio is calculated as 12.41 and 6.33
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 170 days at the
end of 2010 to 146 days at the end of 2011. This represents a positive trend.
And Inventory turnover has increased from 2.15 times in year 2010 to 2.5 times
in year 2011.
The company's Total Asset Turnover is calculated as 1.65 times and 1.21
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 Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.49 |
|
|
1 |
Rs.86.81 |
|
Euro |
1 |
Rs.73.68 |
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.