MIRA INFORM REPORT
|
Report Date : |
29.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
KHON
KAEN FISHING NET
FACTORY CO., LTD. |
|
|
|
|
Registered Office : |
115 Moo 17, Mitraparb Highway, T. Naimuang, A. Muang, Khon Kaen 40000 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
03.10.1977 |
|
|
|
|
Com. Reg. No.: |
0405520000103 [Former : KHOR. KOR. 146] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, exporter &
distributor of Fishing net &
fishing twines |
|
|
|
|
No. of Employees : |
5000 |
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
KHON KAEN FISHING
NET FACTORY CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 115
MOO 17, MITRAPARB
HIGHWAY,
T. NAIMUANG,
A. MUANG,
KHON KAEN
40000, THAILAND
TELEPHONE : [66] 43
221-880-5, 224-991-4
FAX :
[66] 43
221-879, 224-939
E-MAIL
ADDRESS : kkf@kkfnets.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1977
REGISTRATION
NO. : 0405520000103 [Former
: KHOR. KOR. 146]
TAX
ID NO. : 3451000377
CAPITAL REGISTERED : BHT. 1,000,000,000
CAPITAL PAID-UP : BHT.
1,000,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
BURI SERIYOTHIN, THAI
PRESIDENT
NO.
OF STAFF : 5,000
LINES
OF BUSINESS : FISHING NET
& FISHING TWINES
MANUFACTURER, EXPORTER
& 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
October 3, 1977
as a private
limited company under
the name style
KHON KAEN FISHING
NET FACTORY CO.,
LTD. by Thai
group, Seriyothin family.
KKF is one of the largest and
most successful companies
involved in production
and marketing operations
of fishing nets
and related products.
Before starting production
of its own
brand which was
popularly known as
“SHIP” brand in
1977, KKF had
enjoyed 35 years
of experience as
a trader of
nylon fishing nets.
It currently employs
approximate 5,000 staff.
The subject’s registered
address is 115
Moo 17 Mitraparb
Highway, T. Naimuang,
A. Muang, Khon Kaen
40000, and this
is the company’s
current operation address.
THE BOARD OF
DIRECTOR
|
Name |
Nationality
|
Age
|
|
|
|
|
|
Mr. Burapa Seriyothin :
Chairman |
Thai |
76 |
|
Mr. Bovorn Seriyothin :
Vice Chairman |
Thai |
65 |
|
Mr. Chaiyos Seriyothin |
Thai |
51 |
|
Mr. Buri Seriyothin |
Thai |
63 |
|
Mr. Viboon Seriyothin |
Thai |
49 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Buri Seriyothin
is the President.
He is Thai
nationality with the
age of 63
years old.
Mr. Chaiyos Seriyothin
is the Managing
Director.
He is Thai
nationality with the
age of 51
years old.
Mr. Vudhichai Tarasena
is the Products
Manager.
He is Thai
nationality.
Mr. Vinij Seriyothin
is the Administration Director.
He is Thai
nationality.
Mr. Prawit Saengchaiyathorn is
the Account &
Finance Director.
He is Thai nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
various sizes of
fishing nets ranging
from net weight
of less than
1/2 kilogram to net weight
of over 250
kilograms per piece.
Its products consist
of different kinds
of nylon fishing
nets as follows:
Fishing Net
·
Nylon
Monofilament
·
Nylon
Multi-Monofilament
·
Nylon
Multifilament
·
Polyethylene
·
Raschel
or Knotless
·
Assembled
Trammel
Fishing Twine
·
Monofilament
twine
·
Polyethylene
twine
·
Nylon
Multifilament twine
·
Long Line/
Branch Line
MAJOR BRAND
“SHIP”
PURCHASE
80% of its
raw materials such
as nylon chip,
polyethylene chip and
HDPE chip [High
Density Polyethylene] are
purchased from local
suppliers, and the
remaining 20% mainly
polymide, HDPE and
chemical are imported from
Singapore, Germany, Japan
& Republic of China.
MAJOR SUPPLIERS
|
Name |
Country |
|
Thai Nylon Textile
Co., Ltd. |
Thailand |
|
Thai Polymer Textile
Co., Ltd. |
Thailand |
|
Asia Fiber Public Co., Ltd. |
Thailand |
|
Nissho Iwai [Thailand]
Ltd. |
Thailand |
|
Srithepthai Marketing Co.,
Ltd. |
Thailand |
|
IRPC Public Company
Limited |
Thailand |
SALES [LOCAL]
70% of
its products is
sold by wholesale
to local dealers.
Presently, the subject
has around 5,000
dealers nationwide.
EXPORT [COUNTRY]
30% of its products
is also exported to Singapore,
Indonesia, Myanmar, Vietnam,
Malaysia, India,
Philippines, Norway, Italy,
Saudi Arabia, Brazil,
Republic of China
and European countries.
SUBSIDIARIES & AFFILIATED
COMPANIES
K.R. Plastics Co.,
Ltd.
Address : Thailand
Business Type : Manufacturer
of nylon for
brush
Thai Frank Brush
Co., Ltd.
Address : Thailand
Business Type : Manufacturer
of brush products
Automation Work Co.,
Ltd.
Address : Thailand
Business Type : Warehousing service
Joint
Venture Company:
Shantou Xiangfa Fishing
Tackle Co., Ltd.
Address : 326-328
Daxue Rd., Shantou,
China
Tel. : 86-754-2517628, 2517638
Fax : 86-754-2531388
Myanmar Khon Kaen
Trading Co., Ltd.
Address : 70
Phone Gyi Street,
Lanmadaw Township, Yangon, Myanmar
Tel. : 001-95-1-229337, 226681
Fax : 001-95-1-229680
Overseas Representative Office:
Khon Kaen Fishing Net Factory Co., Ltd. - Representative Office
Address : 4A,
Nui Thanh Street,
Ward 13 Tan
Binh District, Ho
Chi Minh City,
Vietnam
Tel. : 001-84-8-842-9249
Fax : 001-84-8-842-9240
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 on the
credit term of
30 days.
Imports are by
L/C on the
credits term of
30-60 days or T/T.
Exports are against
T/T.
BUSINESS TRANSACTION
In term of sales, the products are sold locally on the credit with the maximum credit given to customers at 90 days, while the export is by L/C at sight or T/T. The subject is not found to have problem of payment to suppliers as well as from customers.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom Rd.,
Bangrak, Bangkok 10500]
[Naimuang Branch
: Khon Kaen Province]
Kasikornbank Public Co.,
Ltd.
[Jatujak Branch
: Phaholyothin Rd.,
Ladyao, Jatujak, Bangkok
10900]
[Naimuang Branch
: Khon Kaen Province]
EMPLOYMENT
The subject employs
approximately 5,000 office
staff and factory
workers.
LOCATION DETAILS
The premise is
owned for administrative office,
factory & warehouse
at the heading
address on 48,000
square meters of
land. It is
located in the
Northeastern part of
Thailand.
Branch Office:
The subject currently
has 11 branches
located in both
Bangkok and provincial
as follows:
- 250 Moo
8, Laonadee Rd., T.
Muangkao, A. Muang, Khon
Kaen 40000
Tel :
[66-43] 220-680-5, 324-614-20
Fax : [66-43]
224-998.
- 109/1 Soi Chokechairuammitr, Vibhavadee
Rangsit Rd., Ladyao,
Jatujak,
Bangkok 10900
Tel : [66]
2691-5256-9 Fax: [66]
2277-5009.
- 105 Moo
7, T. Sawatee,
A. Muang, Khon
Kaen 40000
- 99 Moo
4, Chiangyuan - Khamyai, T.
Laodokmai, Mahasarakam.
- 292 Ruenrom
Rd., T. Naimuang,
A. Muang, Khon
Kaen
- 86 Moo
8, Laonadee Rd.,
T. Muangkao, A.
Muang, Khon Kaen 40000
- 85 Moo
5, Bannongpode,
Mahasarakam-Vapeepathum Rd., T. Wangnang,
A. Muang,
Mahasarakam.
- 94 Moo 9,
Bannonghai, Maliwan Rd.,
Nongrua, Khon Kaen
40210.
- 115 Moo 11,
Bannonghwa,
Chiangyuen-Khamyai Rd., Chuenchom,
Mahasarakam.
- 227 Moo 13, Liangmuang Rd., T. Banped, A. Muang, Khon Kaen 40000.
- 205 Moo 13,
Liangmuang Rd., T. Banped,
A. Muang, Khon Kaen
40000.
COMMENT
KKF, is one
of the largest
and most successful
companies involved in
production and marketing
operating of fishing
nets and related
products.
The three decades
offers KKF with
invaluable knowledge of
customer’s and end-user’s
requirement, market demand,
price optimization and
new products development.
Supported by perpetual new technology development, finished goods
are constantly checked
to ensure they
meet increasing strict
requirements of importing
countries. Nowadays, as a
leading manufacturer of fishing
nets, a strong determination, and
pioneering spirit coupled with
the adoption of advanced
production technology innovative,
high quality and
variety are the
keys to the
strong presence and
the renowned of ‘KKF
PRODUCTS’ in the
global markets for
the past three decades.
FINANCIAL INFORMATION
The capital was
registered at Bht. 1,500,000
divided into 1,500
shares of Bht.
1,000 each.
The capital was
increased later as
followings :
Bht. 26,500,000 on
April 18, 1988
Bht. 90,000,000 on
August 3, 1990
Bht. 200,000,000
on January 20, 1995
Bht. 350,000,000
on October 17,
1997
Bht. 750,000,000
on January 14,
2003
Bht. 1,000,000,000 on
August 19, 2011
The latest
registered capital was
increased to Bht. 1,000,000,000 divided
into 1,000,000 shares
of Bht. 1,000 each
with fully paid.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Bovorn Seriyothin Nationality: Thai Address : 227/2
Moo 13,
Lungsoonratchakarn Rd., T.
Naimuang, A. Muang, Khon Kaen |
333,333 |
33.33 |
|
Mr. Buri
Seriyothin Nationality: Thai Address : 115
Moo 17, Mitraparb Rd.,
T. Naimuang, A.
Muang, Khon Kaen
|
333,332 |
33.33 |
|
Mr. Burapa Seriyothin Nationality: Thai Address : 292
Ruenrom Rd., T. Naimuang, A.
Muang, Khon Kaen |
66,668 |
6.67 |
|
Mr. Chaiyos Seriyothin Nationality: Thai Address : 292
Ruenrom Rd., T. Naimuang, A.
Muang, Khon Kaen |
66,666 |
6.67 |
|
Mr. Vibul Seriyothin Nationality : Thai Address : 292
Ruenrom Rd., T. Naimuang, A.
Muang, Khon Kaen |
66,666 |
6.67 |
|
Mr. Vinij Seriyothin Nationality: Thai Address : 292
Ruenrom Rd., T. Naimuang, A. Muang, Khon
Kaen |
66,666 |
6.67 |
|
Mr. Vinai Seriyothin Nationality: Thai Address : 292
Ruenrom Rd., T. Naimuang, A.
Muang, Khon Kaen |
66,665 |
6.66 |
|
Mr. Limkee Saechiw Nationality: Chinese Address : 292 Ruenrom Rd.,
T. Naimuang, A.
Muang, Khon Kaen |
1 |
- |
Mrs. Vipa Seriyothin Nationality: Thai Address : 292
Ruenrom Rd., T. Naimuang, A.
Muang, Khon Kaen |
1 |
- |
|
Mrs. Suwanna Seriyothin Nationality : Thai Address : 227/2
Moo 13, Langsoonrajakarn Rd.,
T.
Naimuang, A. Muang, Khon
Kaen |
1 |
- |
|
Mr. Sanguan Angsriprasert Nationality: Thai Address : 440 Namuang Rd.,
T. Naimuang, A.
Muang, Khon Kaen |
1 |
- |
Total Shareholders : 11
Share Structure [as
at April 29,
2013]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
10 |
999,999 |
100.00 |
|
Foreign-Chinese |
1 |
1 |
- |
|
Total |
11 |
1,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Varaphan Seemasongkroh No.
6203
BALANCE SHEET [BAHT]
The latest financial figures published as at December 31, 2012, 2011 & 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 [Adjusted] |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
129,969,590.79 |
112,831,305.16 |
69,049,926.35 |
|
Short-term Investment |
- |
839,310.83 |
- |
|
Trade Accounts and
Other Receivable |
544,166,625.35 |
450,760,490.78 |
389,369,047.78 |
|
Inventories |
640,559,867.14 |
672,133,047.37 |
767,663,406.88 |
|
Other Current Assets
|
1,375,637,828.03 |
22,833,992.13 |
10,254,130.40 |
|
|
|
|
|
|
Total Current Assets
|
1,375,637,828.03 |
1,259,398,146.27 |
1,236,336,511.41 |
|
Other Long-term Investment |
151,900,135.04 |
151,900,135.04 |
151,900,135.04 |
|
Fixed Assets |
502,343,880.45 |
464,021,485.95 |
486,047,707.12 |
|
Other Non - current Assets |
1,206,516.60 |
1,192,938.15 |
1,163,516.60 |
|
Total Assets |
2,031,088,360.12 |
1,876,512,705.41 |
1,875,447,870.17 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 [Adjusted] |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
366,076,378.74 |
395,855,451.74 |
823,594,080.08 |
|
Trade Accounts and
Other Payable |
306,309,423.73 |
182,416,512.88 |
113,338,058.03 |
|
Accrued Income Tax |
21,269,757.52 |
17,741,142.96 |
10,789,331.11 |
|
Other Current Liabilities |
47,647,127.24 |
34,161,176.19 |
21,685,192.18 |
|
|
|
|
|
|
Total Current Liabilities |
741,302,687.23 |
630,174,283.77 |
969,406,661.40 |
|
Long-term Loan |
41,600,000.00 |
98,300,000.00 |
60,500,000.00 |
|
Reserve for Employee
Benefits |
27,057,316.12 |
6,139,938.55 |
- |
|
Total Liabilities |
809,960,003.35 |
734,614,222.32 |
1,029,906,661.40 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, and
issued share capital 1,000,000 shares
in 2012 & 2011; 750,000 share
in 2010 |
1,000,000,000.00 |
1,000,000,000.00 |
750,000,000.00 |
|
|
|
|
|
|
Capital Paid |
1,000,000,000.00 |
1,000,000,000.00 |
750,000,000.00 |
|
Retained Earnings: Appropriated for Statutory Reserve |
14,225,911.73 |
14,225,911.73 |
- |
|
Unappropriated |
206,902,445.04 |
127,633,260.53 |
95,541,208.77 |
|
Other Components of Equity |
- |
39,310.83 |
- |
|
Total Shareholders' Equity |
1,221,128,356.77 |
1,141,898,483.09 |
845,541,208.77 |
|
Total Liabilities &
Shareholders' Equity |
2,031,088,360.12 |
1,876,512,705.41 |
1,875,447,870.17 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 [Adjusted] |
2010 |
|
|
|
|
|
|
Sales Income |
2,213,652,643.49 |
2,089,067,698.05 |
1,871,581,518.07 |
|
Other Income |
5,245,282.88 |
43,138,751.64 |
17,866,776.63 |
|
Total Revenues |
2,218,897,926.37 |
2,132,206,449.69 |
1,889,448,294.70 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,933,541,714.94 |
1,889,597,962.52 |
1,670,378,241.02 |
|
Selling Expenses |
17,304,384.78 |
23,300,605.29 |
34,007,931.26 |
|
Administrative Expenses |
152,942,340.87 |
133,848,112.61 |
118,293,123.31 |
|
Total Expenses |
2,103,787,440.59 |
2,046,746,680.42 |
1,822,679,295.59 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
115,110,485.78 |
85,459,769.27 |
66,768,999.11 |
|
Financial Costs |
[5,626,857.48] |
[7,946,098.20] |
[11,582,516.93] |
|
Profit / [Loss] before Income
Tax |
109,483,628.30 |
77,513,671.07 |
55,186,482.18 |
|
Income Tax |
[30,214,443.79] |
[26,095,707.58] |
[16,573,415.92] |
|
|
|
|
|
|
Net Profit / [Loss] |
79,269,184.51 |
51,417,963.49 |
38,613,066.26 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.86 |
2.00 |
1.28 |
|
QUICK RATIO |
TIMES |
(0.86) |
0.90 |
0.47 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.41 |
4.50 |
3.85 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.09 |
1.11 |
1.00 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
120.92 |
129.83 |
167.74 |
|
INVENTORY TURNOVER |
TIMES |
3.02 |
2.81 |
2.18 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
89.73 |
78.76 |
75.94 |
|
RECEIVABLES TURNOVER |
TIMES |
4.07 |
4.63 |
4.81 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
57.82 |
35.24 |
24.77 |
|
CASH CONVERSION CYCLE |
DAYS |
152.82 |
173.35 |
218.91 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
87.35 |
90.45 |
89.25 |
|
SELLING & ADMINISTRATION |
% |
7.69 |
7.52 |
8.14 |
|
INTEREST |
% |
0.25 |
0.38 |
0.62 |
|
GROSS PROFIT MARGIN |
% |
12.89 |
11.61 |
11.71 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.20 |
4.09 |
3.57 |
|
NET PROFIT MARGIN |
% |
3.58 |
2.46 |
2.06 |
|
RETURN ON EQUITY |
% |
6.49 |
4.50 |
4.57 |
|
RETURN ON ASSET |
% |
3.90 |
2.74 |
2.06 |
|
EARNING PER SHARE |
BAHT |
79.27 |
51.42 |
51.48 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.40 |
0.39 |
0.55 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.66 |
0.64 |
1.22 |
|
TIME INTEREST EARNED |
TIMES |
20.46 |
10.75 |
5.76 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
5.96 |
11.62 |
|
|
OPERATING PROFIT |
% |
34.70 |
27.99 |
|
|
NET PROFIT |
% |
54.17 |
33.16 |
|
|
FIXED ASSETS |
% |
8.26 |
(4.53) |
|
|
TOTAL ASSETS |
% |
8.24 |
0.06 |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 5.96%. Turnover has increased from THB 2,089,067,698.05
in 2011 to THB 2,213,652,643.49 in 2012. While net profit has increased from
THB 51,417,963.49 in 2011 to THB 79,269,184.51 in 2012. And total assets has
increased from THB 1,876,512,705.41 in 2011 to THB 2,031,088,360.12 in 2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
12.89 |
Impressive |
Industrial
Average |
4.66 |
|
Net Profit Margin |
3.58 |
Impressive |
Industrial
Average |
0.66 |
|
Return on Assets |
3.90 |
Impressive |
Industrial
Average |
0.85 |
|
Return on Equity |
6.49 |
Impressive |
Industrial
Average |
2.09 |
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 12.89%. 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
3.58% 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
3.9%, 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 6.49%, 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 : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.86 |
Deteriorated |
Industrial
Average |
9.47 |
|
Quick Ratio |
(0.86) |
|
|
|
|
Cash Conversion Cycle |
152.82 |
|
|
|
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 1.86 times in 2012, decreased from 2 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 -0.86 times in 2012,
decreased from 0.9 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 153 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.40 |
Impressive |
Industrial
Average |
0.54 |
|
Debt to Equity Ratio |
0.66 |
Impressive |
Industrial Average |
1.38 |
|
Times Interest Earned |
20.46 |
Satisfactory |
Industrial
Average |
23.40 |
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 20.46 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 0.4 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.41 |
Satisfactory |
Industrial
Average |
5.52 |
|
Total Assets Turnover |
1.09 |
Satisfactory |
Industrial
Average |
1.44 |
|
Inventory Conversion Period |
120.92 |
|
|
|
|
Inventory Turnover |
3.02 |
Acceptable |
Industrial
Average |
4.38 |
|
Receivables Conversion Period |
89.73 |
|
|
|
|
Receivables Turnover |
4.07 |
Impressive |
Industrial
Average |
1.53 |
|
Payables Conversion Period |
57.82 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.07 and 4.63 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 130 days at the
end of 2011 to 121 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 2.81 times in year 2011 to 3.02 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.09 times and 1.11
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 Uptrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.70 |
|
UK Pound |
1 |
Rs.91.14 |
|
Euro |
1 |
Rs.77.98 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.