MIRA INFORM REPORT
|
Report Date : |
04.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
IWATANI CORPORATION [THAILAND]
LTD. |
|
|
|
|
Formerly Known As : |
IWATANI INTERNATIONAL CORPORATION [THAILAND] LTD. |
|
|
|
|
Registered Office : |
Room 2903, 29th Floor, United Center Building, 323 Silom
Road, Silom, Bangrak, Bangkok
10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
25.01.1990 |
|
|
|
|
Com. Reg. No.: |
0105533010563 [Former :
1054/2533] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Distributor and
Exporter of International
Trading Company |
|
|
|
|
No. of Employees : |
36 |
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
IWATANI CORPORATION [THAILAND]
LTD.
[FORMER : IWATANI INTERNATIONAL CORPORATION [THAILAND]
LTD.]
SUMMARY
BUSINESS ADDRESS : ROOM 2903, 29th FLOOR, UNITED CENTER BUILDING,
323 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2231-1764 -8
FAX : [66] 2231-1769
E-MAIL ADDRESS : info@iwatani.co.th
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1990
REGISTRATION NO. : 0105533010563 [Former : 1054/2533]
TAX ID NO. : 3101788396
CAPITAL REGISTERED : BHT.
300,000,000
CAPITAL PAID-UP : BHT.
300,000,000
SHAREHOLDER’S PROPORTION : FOREIGN :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
EIICHI WADA, JAPANESE
MANAGING DIRECTOR
NO. OF STAFF : 36
LINES OF BUSINESS : INTERNATIONAL TRADING
COMPANY
IMPORTER, 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 January 25,
1990 as a
private limited company
under the registered
name IWATANI INTERNATIONAL
CORPORATION [THAILAND] LTD.,
initially by a
joint investment between
Thai and Japanese
groups, in order
to engage in international
trading business.
On September 4,
2008 the subject’s
name was changed
to IWATANI CORPORATION
[THAILAND] LTD. It
currently employs 36
staff.
Presently, the subject
is a subsidiary
of Iwatani Corporation,
which is holding
around 99.86% of subject’s
total shares.
The subject’s registered
address is Room
2903, 29th Floor,
United Center Bldg.,
323 Silom Rd., Silom, Bangrak, Bangkok 10500, and
this is the
subject’s current operation address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Tadashi Dambara |
|
Japanese |
66 |
|
Mr. Tadaaki Shintani |
|
Japanese |
62 |
|
Mr. Eiichi Wada |
|
Japanese |
58 |
|
Mr. Tetsuhiko Takahashi |
|
Japanese |
47 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Eiichi Wada is
the Managing Director.
He is Japanese
nationality with the
age of 58
years old.
Mr. Jiro Ogura is
the Sales Manager
of Machinery &
Semiconductor Division.
He is Japanese
nationality.
Mr. Sakoshi Makayama is
the Sales Manager
of Metal Division.
He is Japanese
nationality.
Mr. Masanori Miura is
the Sales Manager
of Chemical &
Ceramic Division.
He is Japanese
nationality.
BUSINESS OPERATIONS
The subject is
engaged in international
trading business by
importing, distributing and
exporting wide range
of products, including
industrial machinery, semiconductors, metals,
ceramics, chemicals, industrial
gases, LPG pressure
vessel, heat resistance
paints for motorcycles,
automotive accessories, and
materials for ceramics
and industrial parts.
PURCHASE
Local products are
purchased from local
suppliers.
IMPORT [COUNTRIES]
The products are
imported from Japan, Singapore, Republic
of China, Taiwan, India,
Germany, France, United
Kingdom and United
States of America.
MAJOR SUPPLIERS
Iwatani Corporation : Japan
Iwatani Industrial Gas
Pte. Ltd. :
Singapore
Guangzhou Iwatani Trading
Co., Ltd. : Republic of
China
SALES
The products are
sold locally to wholesalers
and end-users.
EXPORT [COUNTRIES]
The products are
exported to Japan,
Singapore, Malaysia, Republic
of China, Taiwan,
Hong Kong, India,
Indonesia, Australia, Germany,
United States of
America, United Kingdom
and etc.
MAJOR CUSTOMER
S.K.I. Ceramic Co.,
Ltd. : Thailand
PARENT COMPANY
Iwatani Corporation
Address: 4-8 Homashi
3 Chome, Chuo-ku,
Osaka, Japan
SUBSIDIARY AND
AFFILIATED COMPANY
Iwatani Gas and
Machinery [Thailand] Ltd.
Business Type :
Maintenance service of
industrial machinery
ASSOCIATED COMPANY
Bangkok AI-TOA Co.,
Ltd.
Business Type :
Manufacturer and distributor
of metal coating
products
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 by
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BUSINESS TRANSACTION
The products are
sold both by
cash and credit, with
the maximum credit
given at 30– 60
days. There is
no problem on
its account receivable.
BANKING
The Siam Commercial
Bank Public Co., Ltd.
[Head Office :
9 Ratchadapisek Rd.,
Jompol, Jatujak, Bangkok
10900]
Bangkok Bank Public
Co., Ltd.
[Head Office :
333 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
Bank of Tokyo - Mitsubishi UFJ
Ltd.
[Bangkok Branch :
54 North Sathorn
Rd., Silom, Bangrak,
Bangkok 10500]
EMPLOYMENT
The subject employs
36 staff [office and
sales staff].
LOCATION DETAILS
The premise is
rented for administrative office
on 29th floor
in a multi-storey building at
the heading address.
Premise is located
in a prime
commercial area.
COMMENT
The subject is the leading company in trading of various industrial
goods including raw materials for industries and finished goods for wholesale
and end-users. Raw materials for various industries such as chemical, steel
tools and machinery were expected to continue
growing this year, aided by the
continuous expansion of the overall
industry.
Domestic industry has
dramatically grown in line with
the progress economy. Increased
consumption of the products
and services has
contributed to significantly
improve the subject’s business.
FINANCIAL INFORMATION
The capital was
registered at Bht. 6,000,000 divided
into 6,000 shares
of Bht. 1,000 each
with fully paid.
The capital was
increased later as
follows:
Bht. 10,000,000
on September
20, 2004
Bht. 20,000,000
on May
27, 2008
Bht. 300,000,000
on December 21,
2009
The latest registered
capital was increased
to Bht. 300,000,000
divided into 300,000
shares of Bht.
1,000 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE
[as
at March 18,
2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Iwatani Corporation Nationality: Japanese Address : 4-8 Homashi
3 Chome, Chuo-ku,
Osaka, Japan |
299,600 |
99.86 |
|
Iwatani Corporation [M] Sdn. Bhd. Nationality: Malaysian Address : Kuala
Lumpur, Malaysia |
200 |
0.07 |
|
Iwatani Industrial Gas
Pte. Ltd. Nationality: Singaporean Address : 13
Pioneer Sector 3,
Julong Industrial Estate, Singapore |
200 |
0.07 |
Total Shareholders : 3
Share Structure
[as at March
18, 2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
3 |
300,000 |
100.00 |
|
Total |
3 |
300,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT
NO.
Mr. Sakda Kaothanthong No.
4628
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 |
130,256,233 |
144,501,698 |
120,728,949 |
|
Trade Accounts Receivable
|
566,220,424 |
330,681,427 |
435,289,557 |
|
Inventories |
67,236,863 |
72,486,808 |
27,633,094 |
|
Refundable Value Added
Tax |
2,089,844 |
16,662,595 |
3,872,164 |
|
Advance Payment for Inventories |
44,280,069 |
310,990 |
- |
|
Other Current Assets
|
7,374,100 |
6,106,035 |
8,396,380 |
|
|
|
|
|
|
Total Current Assets
|
817,457,533 |
570,749,553 |
595,920,144 |
|
Investment in Associated Company |
3,920,000 |
3,920,000 |
- |
|
Investment in Subsidiary Company |
37,718,125 |
37,718,125 |
- |
|
Other Long-term Investment |
6,419,300 |
6,419,300 |
44,772,425 |
|
Equipment |
4,852,342 |
5,918,400 |
6,588,584 |
|
Intangible Assets |
2,247,751 |
1,555,866 |
1,435,735 |
|
Other Non-current Assets |
5,351,234 |
5,221,899 |
4,518,684 |
|
Total Assets |
877,966,285 |
631,503,143 |
653,235,572 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable
|
497,326,570 |
339,947,455 |
391,739,483 |
|
Other Payable |
27,665,035 |
29,722,693 |
- |
|
Advance Income from
Goods |
49,811,364 |
74,009 |
10,252,054 |
|
Accrued Income Tax |
8,766,339 |
13,727,753 |
- |
|
Accrued Expenses |
- |
- |
30,782,414 |
|
Employee Benefit
Obligation |
- |
- |
1,862,186 |
|
Other Current Liabilities |
15,462,658 |
2,211,027 |
1,794,961 |
|
|
|
|
|
|
Total Current Liabilities |
599,031,966 |
385,682,937 |
436,431,098 |
|
Estimated Employee Benefit |
5,134,600 |
4,955,800 |
- |
|
Total Liabilities |
604,166,566 |
390,638,737 |
436,431,098 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value Authorized &
issued share capital
300,000 shares |
300,000,000 |
300,000,000 |
300,000,000 |
|
|
|
|
|
|
Capital Paid |
202,000,000 |
90,000,000 |
90,000,000 |
|
Retained Earnings: Appropriated for Statutory Reserve |
10,033,701 |
7,188,204 |
5,139,635 |
|
Unappropriated |
61,766,018 |
143,676,202 |
121,664,839 |
|
Total Shareholders' Equity |
273,799,719 |
240,864,406 |
216,804,474 |
|
Total Liabilities &
Shareholders' Equity |
877,966,285 |
631,503,143 |
653,235,572 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
2,724,589,916 |
2,398,126,281 |
2,113,069,537 |
|
Commission Income |
- |
- |
6,099,705 |
|
Gain on Exchange Rate |
981,601 |
- |
2,820,767 |
|
Other Income |
18,244,683 |
8,799,761 |
4,537,971 |
|
Total Revenues |
2,743,816,200 |
2,406,926,042 |
2,126,527,980 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
2,494,419,710 |
2,188,123,358 |
1,961,481,642 |
|
Selling Expenses |
116,961,466 |
93,431,527 |
66,952,165 |
|
Administrative Expenses |
36,593,529 |
40,446,074 |
33,895,753 |
|
Employee Benefit Expenses |
- |
- |
1,826,186 |
|
Loss on Exchange
Rate |
- |
1,825,267 |
- |
|
Total Expenses |
2,647,974,705 |
2,323,826,226 |
2,064,191,746 |
|
|
|
|
|
|
Profit / [Loss] before Income
Tax |
95,841,495 |
83,099,816 |
62,336,234 |
|
Financial Costs |
[24,066,182] |
[26,189,884] |
[21,364,870] |
|
|
|
|
|
|
Net Profit / [Loss] |
71,775,313 |
56,909,932 |
40,971,364 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.36 |
1.48 |
1.37 |
|
QUICK RATIO |
TIMES |
1.16 |
1.23 |
1.27 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
561.50 |
405.20 |
320.72 |
|
TOTAL ASSETS TURNOVER |
TIMES |
3.10 |
3.80 |
3.23 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
9.84 |
12.09 |
5.14 |
|
INVENTORY TURNOVER |
TIMES |
37.10 |
30.19 |
70.98 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
75.85 |
50.33 |
75.19 |
|
RECEIVABLES TURNOVER |
TIMES |
4.81 |
7.25 |
4.85 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
72.77 |
56.71 |
72.90 |
|
CASH CONVERSION CYCLE |
DAYS |
12.92 |
5.72 |
7.44 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.55 |
91.24 |
92.83 |
|
SELLING & ADMINISTRATION |
% |
5.64 |
5.58 |
4.77 |
|
INTEREST |
% |
0.88 |
1.09 |
1.01 |
|
GROSS PROFIT MARGIN |
% |
9.15 |
9.12 |
7.81 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.52 |
3.47 |
2.95 |
|
NET PROFIT MARGIN |
% |
2.63 |
2.37 |
1.94 |
|
RETURN ON EQUITY |
% |
26.21 |
23.63 |
18.90 |
|
RETURN ON ASSET |
% |
8.18 |
9.01 |
6.27 |
|
EARNING PER SHARE |
BAHT |
355.32 |
632.33 |
455.24 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.69 |
0.62 |
0.67 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.21 |
1.62 |
2.01 |
|
TIME INTEREST EARNED |
TIMES |
3.98 |
3.17 |
2.92 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
13.61 |
13.49 |
|
|
OPERATING PROFIT |
% |
15.33 |
33.31 |
|
|
NET PROFIT |
% |
26.12 |
38.90 |
|
|
FIXED ASSETS |
% |
(18.01) |
(10.17) |
|
|
TOTAL ASSETS |
% |
39.03 |
(3.33) |
|
ANNUAL GROWTH : IMPRESSIVE
An annual sales growth is 13.61%. Turnover has increased from THB
2,398,126,281.00 in 2011 to THB 2,724,589,916.00 in 2012. While net profit has
increased from THB 56,909,932.00 in 2011 to THB 71,775,313.00 in 2012. And
total assets has increased from THB 631,503,143.00 in 2011 to THB
877,966,285.00 in 2012.
PROFITABILITY : IMPRESSIVE
PROFITABILITY RATIO
|
Gross Profit Margin |
9.15 |
Deteriorated |
Industrial Average |
27.90 |
|
Net Profit Margin |
2.63 |
Impressive |
Industrial Average |
2.46 |
|
Return on Assets |
8.18 |
Impressive |
Industrial Average |
4.64 |
|
Return on Equity |
26.21 |
Impressive |
Industrial Average |
9.65 |
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 9.15%. 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 2.63%, 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 8.18%, 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 26.21%, 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 Downtrend
LIQUIDITY : SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.36 |
Satisfactory |
Industrial Average |
1.37 |
|
Quick Ratio |
1.16 |
|
|
|
|
Cash Conversion Cycle |
12.92 |
|
|
|
The Current Ratio is to ascertain whether a company's short-term assets
are readily available to pay off its short-term liabilities. The company's
figure is 1.36 times in 2012, decreased from 1.48 times, then it is generally
considered to have good short-term financial strength. When compared with the
industry average, the ratio of the company was lower.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 1.16 times in 2012,
decreased from 1.23 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 13 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.69 |
Acceptable |
Industrial Average |
0.50 |
|
Debt to Equity Ratio |
2.21 |
Risky |
Industrial Average |
0.94 |
|
Times Interest Earned |
3.98 |
Impressive |
Industrial Average |
1.20 |
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 3.99 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 0.69 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 Downtrend
Times Interest Earned Downtrend
ACTIVITY : EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
561.50 |
Impressive |
Industrial Average |
1.55 |
|
Total Assets Turnover |
3.10 |
Impressive |
Industrial Average |
1.83 |
|
Inventory Conversion Period |
9.84 |
|
|
|
|
Inventory Turnover |
37.10 |
Impressive |
Industrial Average |
8.85 |
|
Receivables Conversion Period |
75.85 |
|
|
|
|
Receivables Turnover |
4.81 |
Impressive |
Industrial Average |
3.74 |
|
Payables Conversion Period |
72.77 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.81 and 7.25 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
decreased from 2011. This would suggest the company had deteriorated 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 12 days at the
end of 2011 to 10 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 30.19 times in year 2011 to 37.1
times in year 2012.
The company's Total Asset Turnover is calculated as 3.1 times and 3.8
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.56.57 |
|
|
1 |
Rs.86.15 |
|
Euro |
1 |
Rs.73.64 |
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.