MIRA
INFORM REPORT
|
Report Date : |
11.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
CHO THAVEE
DOLLASIEN PUBLIC COMPANY
LIMITED |
|
|
|
|
Formerly Known as: |
CHO THAVEE DOLLASIEN
CO., LTD. |
|
|
|
|
Registered Office : |
265
Moo 4, Klangmuang Road, Muangkao,
Muang, Khonkean 40000 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
18.11.1994 |
|
|
|
|
Com. Reg. No.: |
0107556000027 [Former : 0405537001400] |
|
|
|
|
Legal Form : |
Public
Limited Company |
|
|
|
|
Line of Business : |
Assembler, distributor and
exporter of trucks and trailers
|
|
|
|
|
No. of Employees : |
300 |
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 : |
Good |
|
Payment Behaviour : |
Regular |
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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
enjoyed solid growth from 2000 to 2007 - averaging more than 4% per year - as it
recovered from the Asian financial crisis of 1997-98. Thai exports - mostly
machinery and electronic components, agricultural commodities, and jewelry -
continue to drive the economy, accounting for more than half of GDP. The global
financial crisis of 2008-09 severely cut Thailand's exports, with most sectors
experiencing double-digit drops. In 2009, the economy contracted 2.3%. In 2010,
Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports
rebounded from their depressed 2009 level. Steady economic growth at just below
4% during the first three quarters of 2011 was interrupted by historic flooding
in October and November in the industrial areas north of Bangkok, crippling the
manufacturing sector and leading to a revised growth rate of only 0.1% for the
year. The industrial sector is poised to recover from the second quarter of
2012 onward, however, and the government anticipates the economy will probably
grow between 5.5 and 6.5% for 2012, while private sector forecasts range between
3.8% and 5.7%.
|
Source : CIA |
Company name
CHO THAVEE DOLLASIEN PUBLIC COMPANY LIMITED
[FORMER : CHO
THAVEE DOLLASIEN CO.,
LTD.]
SUMMARY
BUSINESS
ADDRESS : 265
MOO 4, KLANGMUANG ROAD,
MUANGKAO, MUANG,
KHONKEAN
40000
TELEPHONE : [66] 43 341-414-9
FAX :
[66] 43 261-464
E-MAIL
ADDRESS : info@ctvdoll.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1994
REGISTRATION
NO. : 0107556000027 [Former : 0405537001400]
TAX
ID NO. : 3451011267
CAPITAL REGISTERED : BHT. 180,000,000
CAPITAL PAID-UP : BHT.
130,000,000
SHAREHOLDER’S PROPORTION : THAI : 93.18%
FOREIGN :
6.82%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. SURADECH THAVEESAENGSAKULTHAI, THAI
MANAGING DIRECTOR
AND FACTORY MANAGER
NO.
OF STAFF : 300
LINES
OF BUSINESS : TRUCKS AND
TRAILERS
ASSEMBLER, 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 originally was established
on November 18, 1994
as a private
limited company under
the name style CHO THAVEE DOLLASIEN CO., LTD., which
was a joint venture
between Khonkaen Cho
Thavee [1993] Co., Ltd.,
Thailand and the
German venture, Emil
Doll with the
share holding proportion
of 74% by Thai
company and 26%
by German DOLL.
The subject is
engaged in manufacturing
and designing of
airport ground service
equipment, truck bodies
and trailers assembly
with ISO 9001 Certification. Its
products are for
local and export
markets.
On January 2,
2013, the subject’s
status was converted
to a public
limited company under
the name CHO THAVEE
DOLLASIEN PUBLIC COMPANY
LIMITED, and currently
is under listing
application consideration of
The Stock Exchange
of Thailand. It
currently has staff strength of
300.
ASSOCIATE MEMBERS
Board of Investment
Export
Promotion Center
Federation
of Industry of
Thailand
Thai
Chamber of Commerce
The subject’s registered address is 265 Moo 4, Klangmuang Rd., Muangkao,
Muang, Khonkaen 40000, and
this is the company’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Suradech Thaveesaengsakulthai |
[x] |
Thai |
47 |
|
Ms. Assana Thaveesaengsakulthai
|
[x] |
Thai |
59 |
|
Mr. Natthachai
Thaveesaengsakulthai |
|
Thai |
33 |
|
Mr. Siriwat
Thaveesaengsakulthai |
|
Thai |
31 |
|
Mr. Asa Pradeepasane |
|
Thai |
53 |
|
Mr. Anusorn Thammajai |
|
Thai |
47 |
|
Mrs. Phenpimol Vejvarutama |
|
Thai |
51 |
|
Mr. Chatchawal Treamvijarnkul |
|
Thai |
49 |
AUTHORIZED PERSON
Both of the
mentioned directors [x]
can jointly sign
on behalf of
the subject with company’s affixed.
MANAGEMENT
Mr. Suradech Thaveesaengsakulthai is
the Managing Director
and Factory Manager.
He is Thai
nationality with the
age of 47
years old.
Ms. Assana Thaveesaengsakulthai is
the Deputy Managing
Director.
She is Thai
nationality with the age of
59 years old.
Ms. Pattarin Anukulanantachai is
the Sales Executive
Director.
She is Thai
nationality.
Mr. Sven Gaber is
the Sales Overseas
Manager.
He is German
nationality.
Mr. Somchai Thaveeviset is
the Human Resource
Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in assembling
manufacture of airport
ground service equipment,
truck bodies, full-trailers
and semi-trailers assembly
as the followings:
TYPE OF
PRODUCTS
Airport Ground
Service
CATERING TRUCK HI-LOADER
Full-Trailer
DUMP FULL TRAILER
(SUMO 6)
CARGO Steel FULL
TRAILER (EAGLE 3)
Semi-Trailer
DUMP BODY SEMI
TRAILER
LOWBED SEMI
TRAILER DROP DECK
35 M/T. [T-REX]
Truck Bodies
ALUMINIUM VAN BODY
Special Trailers
2-AXLES DROP-BED/ 2-AXLES-LINE DOLLY
5-AXLES
SPECIAL TRAILER
16-AXLES
SPECIAL TRAILER
Other Products
and Services
Fire
fighting vehicles
Water tank
Passenger stainways
Lavatory service trucks
Platform truck
Cart
Railway refurbishment
The production processing
technologies are supplied
by Emil Doll
GmbH, Germany.
Reference projects:
The subject has
been awarded a
number of contracts from both
government and private enterprises
as follows:
-
14
units of 6
Steering Axles Semi-trailers
for Express Way
project
-
22
units of 14 and 16
Steering Axles Semi-trailers for Elevated Express Way
project
-
30
units of 6 Steering Axles Semi-trailers for
Express Way project
-
60 units of
Catering Hi-loaders for different
flight kitchens at Don
Muang
International Airport
-
etc.
PURCHASE
Raw materials, machineries and
spare parts are purchased from
suppliers in domestic and overseas
countries such as
Germany, Singapore, Taiwan,
Republic of China
and Japan.
MAJOR SUPPLIERS
Emil Doll GmbH & Co. KG.
: Germany
Dollasien Pte. Ltd. : Singapore
SALES [LOCAL]
20% of the
products is sold
and serviced locally
to airlines, hospitals,
transportation, industrial factory
and government sector,
through the subject’s sale office in Bangkok,
Khonkean and Cholburi
provinces, as well as dealers across the nation.
EXPORT [COUNTRIES]
80% of the products
is exported to
representative agents in
Singapore, Japan, Hong Kong, Indonesia,
Dubai, Bangladesh, Myanmar,
India, Saudi Arabia, Philippines, Vietnam, Malaysia,
Republic of China
and Middle East countries.
MAJOR CUSTOMERS
Thai Airways International
Public Company Limited
Dubai International Airport
Hong Kong International
Airport
Toll Logistic [Thailand]
Co., Ltd.
State Railway of
Thailand
SUBSIDIARY AND AFFILIATED
COMPANY
The subject is
found to have
affiliated company in
Thailand as follow:
Khonkaen Cho Thavee
[1993] Co., Ltd.
Business Type :
Manufacturer of truck
bodies
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
credit terms of
30-60 days.
Local bills are
paid by cash
or on the
credit term of 30-60-90
days.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BUSINESS TRANSACTION
The subject is
not found to
have problem on
both account receivable
and payable.
BANKING
Bangkok Bank Public
Co., Ltd.
The Siam Commercial
Bank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
300 staff. [office
staff and factory workers]
LOCATION DETAILS
The premise is
owned for administrative office, factory and warehouse at
the heading address.
Premise is located
in residential area
in Khonkean province.
The subject’s sales office is at
96/25 Moo 3, Vibhavadee Rangsit
Rd., Taladbangkhen, Laksi, Bangkok 10210.
Tel. [66] 2973-4382-4
Fax: [66] 2973-4385.
COMMENT
Truck and trailer assemblers are likely to enjoy steady gains in revenue
over these few years from expansion
of the industries.
As the country’s leading assembling
manufacture of great
variation of trailers,
semi-trailers and truck bodies, the
subject has provided high
standard transport vehicles for more than ten years. Its
outstanding products have been well accepted by domestic and
overseas customers, as well as high
potential for big support from its customers around the world for demand to increase strongly in the long term prospect.
FINANCIAL INFORMATION
The capital was
registered at Bath 10,000,000 divided
into 100,000 shares
of Baht 100
each.
The capital was increased
and decreased later as follows:
Baht 30,000,000 on
July 7, 1995
Baht 60,000,000
on January 6, 1999
Baht 132,000,000
on December 26, 2001
Baht 70,000,000
on December 28,
2007 [Decreased]
Baht 120,000,000
on October 24,
2008
Baht 180,000,000
on January 2,
2013
The latest registered capital
was increased to Baht
180,000,000 divided into
720,000,000 shares of Bht. 0.25
each, with the
current capital paid-up
at Bht. 130,000,000.
MAIN SHAREHOLDERS : [as at
December 24, 2012]
at Bht. 130
million of capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Suradech
Thaveesaengsakulthai Nationality: Thai Address : 265
Moo 4, Klangmuang
Rd., Muangkao, Muang, Khonkaen |
325,507,200 |
62.60 |
|
Mrs. Vasana
Thaveesaengsakulthai Nationality: Thai Address : 265 Moo 4,
Klangmuang Rd., Muangkao, Muang, Khonkaen |
41,600,000 |
8.00 |
|
Mr. Thanyaras
Thaveesaengsakulthai Nationality: Thai Address : 83/26
Taharn Rd., Markkaeng, Muang, Udornthani |
33,333,200 |
6.41 |
|
PTLT Intertrade LLC. Nationality: American Address : 113
New York, Newcastle,
U.S.A. |
26,000,000 |
5.00 |
|
Mr. Surapol
Thaveesaengsakulthai Nationality: Thai Address : 306-309
Moo 7, Naimuang, Muang,
Khonkaen |
25,000,000 |
4.81 |
|
Ms. Assana Thaveesaengsakulthai Nationality: Thai Address : 173/175
Soi Rongmuang, Rongmuang,
Pathumwan, Bangkok |
20,167,600 |
3.88 |
|
Mr. Puthipat Vejvarutama Nationality: Thai Address : 256
Petchkasem Rd., Prapathone,
Muang,
Nakornpathom |
16,666,400 |
3.20 |
|
Ms. Rungthiwa Thaveesaengsakulthai Nationality: Thai Address : 289/11-14
Moo 17, Klangmuang Rd., Muangkao, Muang,
Khonkaen |
15,600,000 |
3.00 |
|
Other Shareholders |
16,125,600 |
3.10 |
Total Shareholders : 15
Share Structure [as
at December 24,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
12 |
484,540,000 |
93.18 |
|
Foreign |
3 |
35,460,000 |
6.82 |
|
Total |
15 |
520,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Methee Rattanasrimetha No. 3425
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash and Cash Equivalents |
12,058,822 |
14,076,454 |
15,961,530 |
|
Trade Accounts Receivable - Related company |
1,465,563 |
2,998,431 |
1,441,637 |
|
- Other company |
91,653,056 |
124,501,322 |
124,919,348 |
|
Unbilled Completed Works Contract |
87,121,146 |
69,574,737 |
203,182,058 |
|
Loan to Person & Related Company |
125,431,630 |
168,375,858 |
19,734,968 |
|
Deferred Interest from Person & Related Company |
26,471,006 |
15,702,524 |
11,876,343 |
|
Other Receivable - Related Company |
6,905,711 |
5,986,002 |
- |
|
Inventories |
163,413,580 |
120,973,458 |
147,450,744 |
|
Other Current Assets
|
13,958,245 |
14,018,391 |
8,318,578 |
|
Total Current Assets
|
528,478,759 |
536,207,177 |
532,885,206 |
|
Cash at Bank pledged
as a Collateral |
13,400,000 |
21,953,066 |
15,700,000 |
|
Investment in Subsidiaries |
22,599,950 |
15,999,950 |
15,999,950 |
|
Fixed Assets |
138,297,239 |
137,727,635 |
144,910,742 |
|
Intangible Assets |
34,555,542 |
19,540,366 |
- |
|
Other Non-current Assets |
1,243,900 |
1,340,400 |
6,222,000 |
|
Total Assets |
738,575,390 |
732,768,594 |
715,717,898 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial
Institution |
463,198,569 |
429,989,640 |
383,498,089 |
|
Trade Accounts Payable - Related Company |
37,026,017 |
8,502,918 |
36,412,799 |
|
- Other Company |
27,953,255 |
49,309,984 |
180,917,219 |
|
Current Portion of Financial Lease Contract Liabilities |
6,552,170 |
5,731,438 |
468,798 |
|
Current Portion of
Long-term Loans |
41,203,343 |
33,008,000 |
3,000,000 |
|
Other Payable-Related Company |
603,857 |
523,641 |
- |
|
Advanced from Custom |
25,701,037 |
48,982,998 |
2,942,708 |
|
Accrued Income Tax |
1,192,030 |
- |
- |
|
Other Current Liabilities |
19,758,769 |
26,561,812 |
20,198,018 |
|
Total Current Liabilities |
623,189,047 |
602,610,431 |
627,437,631 |
|
|
|
|
|
|
Financial Lease Contract
Liabilities, Net of
Current Portion |
8,165,508 |
13,994,749 |
- |
|
Long Term Loan,
Net of Current Portion |
5,050,327 |
44,754,713 |
52,378,227 |
|
Liabilities for Employee
Benefits |
4,798,239 |
- |
- |
|
Total Liabilities |
641,203,121 |
661,359,893 |
679,815,858 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,300,000 share in 2011;
1,200,000 shares in
2010 & 2009
respectively |
130,000,000 |
120,000,000 |
120,000,000 |
|
Capital Paid |
130,000,000 |
120,000,000 |
90,000,000 |
|
Retained Earning -
Unappropriated |
[32,627,731] |
[48,591,299] |
[54,097,960] |
|
Total Shareholders' Equity |
97,372,269 |
71,408,701 |
35,902,040 |
|
Total Liabilities &
Shareholders' Equity |
738,575,390 |
732,768,594 |
715,717,898 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Contract Income |
611,569,692 |
589,184,011 |
873,094,609 |
|
Sales & Services Income |
37,471,751 |
76,656,193 |
80,494,538 |
|
Profit/[Loss] on Exchange Rate |
4,145,906 |
[2,546,318] |
- |
|
Other Income |
33,666,731 |
46,010,270 |
17,167,205 |
|
Total Revenues |
686,854,080 |
709,304,156 |
970,756,352 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Work Contract |
509,116,923 |
533,227,852 |
796,997,951 |
|
Cost of Goods
Sold & Services |
36,142,044 |
63,264,560 |
70,713,300 |
|
Selling Expenses |
30,836,643 |
19,239,698 |
25,233,322 |
|
Administrative Expenses |
48,312,065 |
47,757,306 |
39,742,838 |
|
Loss/[Profit] on Exchange Rate |
- |
- |
[9,850,092] |
|
Remuneration Management |
- |
- |
4,353,725 |
|
Cost of Financial |
39,577,315 |
40,308,079 |
40,173,834 |
|
Total Expenses |
663,984,990 |
703,797,495 |
967,364,878 |
|
Profit Before Income
Tax |
22,869,090 |
5,506,661 |
3,391,474 |
|
Income Tax |
[2,808,851] |
- |
[3,329,089] |
|
Net Profit / [Loss] |
20,060,239 |
5,506,661 |
62,385 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.85 |
0.89 |
0.85 |
|
QUICK RATIO |
TIMES |
0.56 |
0.67 |
0.60 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.69 |
4.83 |
6.58 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.88 |
0.91 |
1.33 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
109.39 |
74.02 |
62.02 |
|
INVENTORY TURNOVER |
TIMES |
3.34 |
4.93 |
5.88 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
51.54 |
68.25 |
47.81 |
|
RECEIVABLES TURNOVER |
TIMES |
7.08 |
5.35 |
7.63 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
18.71 |
30.17 |
76.10 |
|
CASH CONVERSION CYCLE |
DAYS |
142.22 |
112.10 |
33.74 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
84.01 |
89.58 |
90.99 |
|
SELLING & ADMINISTRATION |
% |
12.19 |
10.06 |
6.81 |
|
INTEREST |
% |
6.10 |
6.05 |
4.21 |
|
GROSS PROFIT MARGIN |
% |
21.82 |
16.94 |
10.81 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.52 |
0.83 |
0.36 |
|
NET PROFIT MARGIN |
% |
3.09 |
0.83 |
0.01 |
|
RETURN ON EQUITY |
% |
20.60 |
7.71 |
0.17 |
|
RETURN ON ASSET |
% |
2.72 |
0.75 |
0.01 |
|
EARNING PER SHARE |
BAHT |
15.43 |
4.59 |
0.07 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.87 |
0.90 |
0.95 |
|
DEBT TO EQUITY RATIO |
TIMES |
6.59 |
9.26 |
18.94 |
|
TIME INTEREST EARNED |
TIMES |
0.58 |
0.14 |
0.08 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(2.52) |
(30.18) |
|
|
OPERATING PROFIT |
% |
315.30 |
62.37 |
|
|
NET PROFIT |
% |
264.29 |
8,726.90 |
|
|
FIXED ASSETS |
% |
0.41 |
(4.96) |
|
|
TOTAL ASSETS |
% |
0.79 |
2.38 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is -2.52%. Turnover has decreased from THB
665,840,204.00 in 2010 to THB 649,041,443.00 in 2011. While net profit has
increased from THB 5,506,661.00 in 2010 to THB 20,060,239.00 in 2011. And total
assets has increased from THB 732,768,594.00 in 2010 to THB 738,575,390.00 in
2011.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
21.82 |
Impressive |
Industrial Average |
20.78 |
|
Net Profit Margin |
3.09 |
Impressive |
Industrial Average |
(3.10) |
|
Return on Assets |
2.72 |
Impressive |
Industrial Average |
0.27 |
|
Return on Equity |
20.60 |
Impressive |
Industrial Average |
(3.93) |
Gross Profit Margin used to assess a firm's financial health by revealing
the proportion of money left over from revenues after accounting for the cost
of goods sold. Gross profit margin serves as the source for paying additional
expenses and future savings. Gross Profit Margin is 21.82%. When compared with
the industry average, the ratio of the company was higher, indicated that
company was more profitable than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. Net Profit Margin ratio is 3.09%,
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
2.72%, 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 is 20.6%, 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 Downtrend
Return on Equity Downtrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.85 |
Risky |
Industrial Average |
31.02 |
|
Quick Ratio |
0.56 |
|
|
|
|
Cash Conversion Cycle |
142.22 |
|
|
|
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 0.85 times in 2011, decrease from 0.89 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 0.56 times in 2011,
decrease from 0.67 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 143 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.87 |
Acceptable |
Industrial Average |
0.44 |
|
Debt to Equity Ratio |
6.59 |
Risky |
Industrial Average |
1.16 |
|
Times Interest Earned |
0.58 |
Risky |
Industrial Average |
16.23 |
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 0.58 lower than 1, so the company is not generating
enough cash from EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.87 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 Uptrend
ACTIVITY : RISKY
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.69 |
Deteriorated |
Industrial Average |
119.21 |
|
Total Assets Turnover |
0.88 |
Acceptable |
Industrial Average |
1.48 |
|
Inventory Conversion Period |
109.39 |
|
|
|
|
Inventory Turnover |
3.34 |
Deteriorated |
Industrial Average |
11.58 |
|
Receivables Conversion Period |
51.54 |
|
|
|
|
Receivables Turnover |
7.08 |
Deteriorated |
Industrial Average |
34.48 |
|
Payables Conversion Period |
18.71 |
|
|
|
The company's Account Receivable Ratio is calculated as 7.08 and 5.35 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 increased from 74 days at the
end of 2010 to 109 days at the end of 2011. This represents a negative trend.
And Inventory turnover has decreased from 4.93 times in year 2010 to 3.34 times
in year 2011.
The company's Total Asset Turnover is calculated as 0.88 times and 0.91
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 Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.40 |
|
UK Pound |
1 |
Rs.81.57 |
|
Euro |
1 |
Rs.71.24 |
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.