MIRA INFORM REPORT
|
Report Date : |
04.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
ESSOM CO.,
LTD. |
|
|
|
|
Registered Office : |
508 Soi 22/1, Somdet Phrachao
Taksin Road, Bukkalo,
Thonburi, Bangkok 10600 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
21.04.1986 |
|
|
|
|
Com. Reg. No.: |
0105529013499 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
subject engaged in
design, assembling and
marketing various kinds
of engineering and
science laboratory equipments
for education, mainly
in mechanical and
civil engineering, under
its own brand
“ESSOM”. |
|
|
|
|
No. of Employees : |
70 |
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
ESSOM CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 508
SOI 22/1 SOMDET PHRACHAO TAKSIN ROAD,
BUKKALO, THONBURI,
BANGKOK 10600, THAILAND
TELEPHONE : [66] 2476-0034
FAX : [66] 2476-1500
E-MAIL
ADDRESS : essom@essom.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1986
REGISTRATION
NO. : 0105529013499
TAX
ID NO. : 3101385380
CAPITAL REGISTERED : BHT. 10,000,000
CAPITAL PAID-UP : BHT.
10,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SUNTHORN SRINILTA, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 70
LINES
OF BUSINESS : ENGINEERING AND
SCIENCE LABORATORY
EQUIPMENT
DESIGN,
MANUFACTURER, IMPORTER AND
DISTRIBUTOR
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 April 21,
1986 as a
private limited company under
the registered name
ESSOM CO., LTD.,
by Thai group, the
Srinilta family, with
the business objective
to design, manufacture,
import and distribute
engineering and science
laboratory equipments for
educational and industrial
purposes. It currently
employs approximately 70
staff.
It
achieved the standard
ISO 9001 certification, Quality Management Systems
in 1999.
The subject’s registered
address is 508 Soi 22/1, Somdet
Phrachao Taksin Road,
Bukkalo, Thonburi, Bangkok
10600, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sunthorn Srinilta |
[x] |
Thai |
80 |
|
Mrs. Aim-orn Srinilta |
|
Thai |
75 |
|
Mr. San Srinilta |
|
Thai |
47 |
|
Mrs. Amornsiri Srinilta |
|
Thai |
44 |
|
Mr. Kamol Srinilta |
|
Thai |
43 |
|
Mr. Naris Srinilta |
|
Thai |
41 |
AUTHORIZED
PERSON
Only the mentioned
director [x] signs
or any two
of the rest directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Sunthorn Srinilta is
the Managing Director.
He is Thai
nationality with the
age of 80
years old.
Mr. San Srinilta is
the Deputy Managing
Director & Factory Manager.
He is Thai
nationality with the
age of 47 years
old.
BUSINESS
OPERATIONS
The subject
is engaged in
design, assembling and
marketing various kinds
of engineering and
science laboratory equipments
for education, mainly
in mechanical and
civil engineering, under
its own brand
“ESSOM”.
It is also
importer and distributor
of scientific and
other engineering equipments
for education, as
well as paint
spray equipment for
coating industry.
Range of
products are as
follows:
1. Education
Products
·
Engineering
- Fluid Mechanics and
Hydrology
- Thermodynamics
- Materials Testing
- Theory of
machines
- Structures and accessories
- Physics
- Miscellaneous
- Learning Software
- Operating Software
- Chemical Engineering
and Food Technology
- Science Equipment
·
Petroleum
Testing
- Bituminous Test
- Inflammability
- Calorimeter
- Liquid Petroleum
Gas [LPG]
- Corrosion
- Penetration
- Densimetry
- Rust
- Distillation
- Viscosity
- Greases
- Miselaneous
2. Industrial Products
·
Paint
Spray System
- Manual Spray
Gun Pressure, Gravity,
Suction
- Manual Spray
Gun - Medium/High Pressure
- Automatic Spray
Guns - Low Pressure
- Automatic Guns - Medium
and High Pressure
- Pressure Feed
Tanks/Cups
- Paint Pumps
- Low Pressure
- Paint Pumps
- Medium and
High Pressure
- Electrostatic Spray
Guns
- 2K Fluid
Equipment
- Agitators
- Power Coating
- Technisis Paper
- Respiratory Protection
Masks
- Air Filter
Regulator Coalescers
- Accessories
PURCHASE
Raw
materials for the
production, as well
as finished products
are purchased from
suppliers both domestic
and overseas, mainly
in Germany, Italy,
Japan, Republic of
China, Malaysia and
U.S.A.
SALES
Most of the
products are sold
locally to wholesalers
and end-users, mainly
university and school
both private and
government sectors, the
remaining is exported
to Malaysia, India,
Indonesia, Hong Kong
and South Africa.
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
according to 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 by
T/T.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
Kasikornbank
Public Co., Ltd.
EMPLOYMENT
The
subject currently employs
approximately 70 staff.
LOCATION
DETAILS
The
premise is owned
for administrative office
at the heading
address. Premise is located in
commercial/residential area.
Factory
and warehouse are
located at 34/1
Moo 12, Soi
Pracharaj 42, Budhamonthon
Sai 5 Road,
Raiking, Sampran,
Nakornpathom 73210. Total
area : 2,000
square meters.
Tel.:
[66] 2811-9731-3 Fax:
[66] 2811-9734
COMMENT
The
subject is a
high quality company in
design, manufacturing and
marketing engineering and
science laboratory equipment
for education mainly
in mechanical and
civil engineering, as well
as providing equipment
for coating industry.
Its products has
been designed by
its experienced and
well qualified engineers
with prototypes passing
design test standards
before production. Parts
and materials for
the equipment are
sourced from approved
suppliers and are
of readily available industrial components.
Subject
also disclosed its
moderate business performance
in the past
years.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 1,000,000 divided
into 10,000 shares of
Bht. 100 each with
fully paid.
The
capital was increased
later as follows:
Bht. 2,000,000
on May 9,
1990
Bht. 3,000,000
on November 11,
1996
Bht. 5,000,000
on January 17,
2000
Bht. 10,000,000
on March 2,
2005
The
latest registered capital
was increased to
Bht. 10,000,000 divided into
100,000 shares of
Bht. 100 each with fully
paid.
MAIN
SHAREHOLDERS
[as at November
9, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Sunthorn Srinilta Nationality: Thai Address : 510/1
Somdet Phrachao Taksin
Rd.,
Bukkalo, Thonburi, Bangkok |
25,380 |
25.38 |
|
Mrs. Aim-orn Srinilta Nationality: Thai Address : 506
Somdet Phrachao Taksin
Rd.,
Bukkalo, Thonburi, Bangkok |
14,000 |
14.00 |
|
Mrs. Amornsiri Srinilta Nationality: Thai Address : 510/1
Somdet Phrachao Taksin
Rd.,
Bukkalo, Thonburi, Bangkok |
13,000 |
13.00 |
|
Mr. San Srinilta Nationality: Thai Address : 510/2
Somdet Phrachao Taksin
Rd.,
Bukkalo, Thonburi, Bangkok
|
12,000 |
12.00 |
|
Mr. Naris Srinilta Nationality: Thai Address : 506
Somdet Phrachao Taksin
Rd.,
Bukkalo, Thonburi, Bangkok
|
12,000 |
12.00 |
|
Mr. Kamol Srinilta Nationality: Thai Address : 510/3
Somdet Phrachao Taksin
Rd.,
Bukkalo, Thonburi, Bangkok
|
8,000 |
8.00 |
|
Mr. Kobsin Taweesin Nationality: Thai Address : 2/152
Sukhapiban 3 Rd.,
Minburi,
Minburi, Bangkok |
3,500 |
3.50 |
|
Master Yarnapat Srinilta Nationality: Thai Address : 510/3
Somdet Phrachao Taksin
Rd.,
Bukkalo, Thonburi, Bangkok
|
3,100 |
3.10 |
|
Ms. Tanachapak Srinilta Nationality: Thai Address : 510/3
Somdet Phrachao Taksin Rd.,
Bukkalo, Thonburi, Bangkok
|
3,100 |
3.10 |
|
Other Shareholders |
5,920 |
5.92 |
Total Shareholders : 15
Share Structure [as
at November 9,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
15 |
100,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
15 |
100,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Buppha Chawapong No.
7640
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 |
1,105,164.46 |
7,030,088.62 |
1,161,292.73 |
|
Trade Accounts Receivable
|
10,999,165.95 |
10,621,697.24 |
10,610,336.07 |
|
Inventories |
37,420,148.08 |
33,920,821.89 |
29,730,456.47 |
|
Other Current Assets
|
986,210.94 |
643,150.81 |
849,005.06 |
|
|
|
|
|
|
Total Current Assets
|
50,510,689.43 |
52,215,758.56 |
42,351,090.33 |
|
|
|
|
|
|
Fixed Assets |
20,842,327.81 |
19,351,862.24 |
17,659,617.78 |
|
Other Investment in Other
Company |
520,865.00 |
520,865.00 |
520,865.00 |
|
Other Non - current Assets |
199,593.00 |
214,346.60 |
70,772.90 |
|
Total Assets |
72,073,475.24 |
72,302,832.40 |
60,602,346.01 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Bank Overdraft |
4,735,691.21 |
6,757,505.22 |
6,987,646.43 |
|
Trade Accounts Payable
|
3,697,633.47 |
2,306,359.12 |
3,547,159.77 |
|
Current Portion of
Long-term Lease Contract Payable |
460,644.00 |
- |
- |
|
Current Portion of
Long-term Loans |
1,147,325.56 |
1,353,001.75 |
603,932.84 |
|
Other Current Liabilities |
6,556,512.30 |
8,376,781.56 |
3,442,721.72 |
|
|
|
|
|
|
Total Current Liabilities |
16,597,806.54 |
18,793,647.65 |
14,582,460.76 |
|
Long-term Lease Contract
Payable, Net of
Current Portion |
815,442.00 |
- |
- |
|
Long-term Loan, Net of
Current Portion |
695,404.66 |
2,836,485.42 |
338,158.39 |
|
Employee Benefits Obligation |
181,677.78 |
- |
- |
|
Long-term Loan from
Related Person |
26,538,000.00 |
25,538,000.00 |
22,377,784.49 |
|
Total Liabilities |
44,828,330.98 |
47,168,133.07 |
37,298,403.64 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 100,000 shares |
10,000,000.00 |
10,000,000.00 |
10,000,000.00 |
|
|
|
|
|
|
Capital Paid |
10,000,000.00 |
10,000,000.00 |
10,000,000.00 |
|
Retained Earning Unappropriated |
17,245,144.26 |
15,134,699.33 |
13,303,942.37 |
|
Total Shareholders' Equity |
27,245,144.26 |
25,134,699.33 |
23,303,942.37 |
|
Total Liabilities &
Shareholders' Equity |
72,073,475.24 |
72,302,832.40 |
60,602,346.01 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales Income |
92,971,221.39 |
71,723,365.03 |
57,509,338.58 |
|
Other Income |
8,503.13 |
1,911,076.93 |
259,160.35 |
|
Total Revenues |
92,979,724.52 |
73,634,441.96 |
57,768,498.93 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
58,828,235.11 |
43,011,709.41 |
36,792,578.46 |
|
Selling Expenses |
6,841,392.49 |
7,093,135.68 |
3,452,223.89 |
|
Administrative Expenses |
22,331,034.77 |
19,482,186.95 |
14,748,171.60 |
|
Total Expenses |
88,000,662.37 |
69,587,032.04 |
54,992,973.95 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
4,979,062.15 |
4,047,409.92 |
2,775,524.98 |
|
Financial Costs |
[1,980,754.98] |
[1,425,792.89] |
[1,947,946.32] |
|
Profit / [Loss] before Income
Tax |
2,998,307.17 |
2,621,617.03 |
827,578.66 |
|
Income Tax |
[887,862.24] |
[790,860.07] |
[284,199.42] |
|
|
|
|
|
|
Net Profit / [Loss] |
2,110,444.93 |
1,830,756.96 |
543,379.24 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
3.04 |
2.78 |
2.90 |
|
QUICK RATIO |
TIMES |
0.73 |
0.94 |
0.81 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.46 |
3.71 |
3.26 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.29 |
0.99 |
0.95 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
232.17 |
287.85 |
294.94 |
|
INVENTORY TURNOVER |
TIMES |
1.57 |
1.27 |
1.24 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
43.18 |
54.05 |
67.34 |
|
RECEIVABLES TURNOVER |
TIMES |
8.45 |
6.75 |
5.42 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
22.94 |
19.57 |
35.19 |
|
CASH CONVERSION CYCLE |
DAYS |
252.41 |
322.34 |
327.09 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
63.28 |
59.97 |
63.98 |
|
SELLING & ADMINISTRATION |
% |
31.38 |
37.05 |
31.65 |
|
INTEREST |
% |
2.13 |
1.99 |
3.39 |
|
GROSS PROFIT MARGIN |
% |
36.73 |
42.70 |
36.47 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.36 |
5.64 |
4.83 |
|
NET PROFIT MARGIN |
% |
2.27 |
2.55 |
0.94 |
|
RETURN ON EQUITY |
% |
7.75 |
7.28 |
2.33 |
|
RETURN ON ASSET |
% |
2.93 |
2.53 |
0.90 |
|
EARNING PER SHARE |
BAHT |
21.10 |
18.31 |
5.43 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.62 |
0.65 |
0.62 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.65 |
1.88 |
1.60 |
|
TIME INTEREST EARNED |
TIMES |
2.51 |
2.84 |
1.42 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
29.62 |
24.72 |
|
|
OPERATING PROFIT |
% |
23.02 |
45.83 |
|
|
NET PROFIT |
% |
15.28 |
236.92 |
|
|
FIXED ASSETS |
% |
7.70 |
9.58 |
|
|
TOTAL ASSETS |
% |
(0.32) |
19.31 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 29.62%. Turnover has increased from THB 71,723,365.03
in 2010 to THB 92,971,221.39 in 2011. While net profit has increased from THB
1,830,756.96 in 2010 to THB 2,110,444.93 in 2011. And total assets has
decreased from THB 72,302,832.40 in 2010 to THB 72,073,475.24 in 2011.
PROFITABILITY : IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
36.73 |
Impressive |
Industrial
Average |
22.55 |
|
Net Profit Margin |
2.27 |
Satisfactory |
Industrial
Average |
2.71 |
|
Return on Assets |
2.93 |
Satisfactory |
Industrial
Average |
3.77 |
|
Return on Equity |
7.75 |
Satisfactory |
Industrial
Average |
7.88 |
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 36.73%. 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 2.27%.
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 2.93%.
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 7.75%.
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 |
3.04 |
Impressive |
Industrial
Average |
1.46 |
|
Quick Ratio |
0.73 |
|
|
|
|
Cash Conversion Cycle |
252.41 |
|
|
|
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 3.04 times in 2011, increased from 2.78 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 0.73 times in 2011,
decreased from 0.94 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 253 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.62 |
Acceptable |
Industrial
Average |
0.52 |
|
Debt to Equity Ratio |
1.65 |
Risky |
Industrial
Average |
1.09 |
|
Times Interest Earned |
2.51 |
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 2.52 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 0.62 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 |
4.46 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.29 |
Satisfactory |
Industrial
Average |
1.39 |
|
Inventory Conversion Period |
232.17 |
|
|
|
|
Inventory Turnover |
1.57 |
Deteriorated |
Industrial
Average |
3.25 |
|
Receivables Conversion Period |
43.18 |
|
|
|
|
Receivables Turnover |
8.45 |
Impressive |
Industrial
Average |
2.66 |
|
Payables Conversion Period |
22.94 |
|
|
|
The company's Account Receivable Ratio is calculated as 8.45 and 6.75 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 288 days at the
end of 2010 to 232 days at the end of 2011. This represents a positive trend.
And Inventory turnover has increased from 1.27 times in year 2010 to 1.57 times
in year 2011.
The company's Total Asset Turnover is calculated as 1.29 times and 0.99
times in 2011 and 2010 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Uptrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.56.57 |
|
UK Pound |
1 |
Rs.86.15 |
|
Euro |
1 |
Rs.73.64 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.