MIRA INFORM REPORT
|
Report Date : |
21.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
DECOR MART CO., LTD. |
|
|
|
|
Registered Office : |
555 Soi Sukhumvit 55 [Thonglor], Sukhumvit Road, Klongtonnua, Wattana, Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
31.08.1992 |
|
|
|
|
Com. Reg. No.: |
0105535121753 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer & Distributor of Home Furnitures And Decorating Products |
|
|
|
|
No. of Employees : |
180 |
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 : |
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 (31.03.2011) |
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
DECOR
MART CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 555
SOI SUKHUMVIT 55 [THONGLOR],
SUKHUMVIT ROAD,
KLONGTONNUA,
WATTANA, BANGKOK
10110
TELEPHONE : [66] 2365-0789-93
FAX
:
[66] 2365-0779
E-MAIL
ADDRESS : serviceline@decormart.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1992
REGISTRATION
NO. : 0105535121753 [Former: 11814/2535]
TAX
ID NO. : 3011184929
CAPITAL REGISTERED : BHT. 320,400,000
CAPITAL PAID-UP : BHT.
320,400,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MS. SUPARAT JIRAPONGWATTANA, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 180
LINES
OF BUSINESS : HOME
FURNITURES AND DECORATING
PRODUCTS
IMPORTER &
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 August
31, 1992 as
a private limited
company under the registered
name “Home Supermart Center Co., Ltd.,” by Thai
groups, in order
to provide products & service
of home furniture
and decoration products
to domestic market. On October
9, 1992 the subject’s name
was changed to DECOR
MART CO., LTD. It currently
employs approximate 180
staff.
The subject’s registered address was
initially located at 402
Moo 5, Srinakarin Rd.,
Samrongnua, Muang, Samutprakarn
10270.
On February 1,
2013, its registered
address was relocated
to 555 Soi
Sukhumvit 55 [Thonglor], Sukhumvit
Rd., Klongtonnua, Wattana,
Bangkok 10110, and this
is the subject’s
current operation address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Prapai Thayanuwat |
[x] |
Thai |
58 |
|
Mr. Rachan Thayanuwat |
|
Thai |
56 |
|
Ms. Suparat Jirapongwattana |
[x] |
Thai |
47 |
|
Mr. Prasit Jirapongwattana |
|
Thai |
77 |
|
Ms. Kamolrat Jirapongwattana |
|
Thai |
41 |
AUTHORIZED PERSON
Two of the mentioned
directors [x] can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Ms. Suparat Jirapongwattana is
the Managing Director.
She is Thai nationality with
the age of 47 years
old.
Ms. Kamolrat Jirapongwattana is
the Marketing &
Sales Manager.
She is Thai
nationality with the
age of 41
years old.
Ms. Paveena
Thaveekijcharoenpaisal is the
Business Development Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject’s
activity is a
distributor of home
decoration & furniture
including tiles, sanitary wares, bathroom
equipment and etc.,
with over 50
local and international
brands. Its products
are as follows:
PRODUCTS BRANDS
-
Floor
& wall tile :
“ZAIJIAN”, “MARAZZI”, “ETERNITY”,
“RAGNO”,
“SALONI”, “VERSACE”, “ATLAS”,
“CONCIRDE”, “GARDENIA”, “ORCHIDEA”
-
Sanitary ware :
“ATHEA”, “SANITAN”, “VIRTU”,
“DURAVIT”, “AGAPE”, “KALDEWEI”
-
Bathroom
fittings : “POM
D’OR”, “RALPH LAUREN”,
“ZAZZERI”
“SAMUAL
HEALTH”, “IMPERIAL”, “AXOR”
“COSMIC KOHLER”,
“HANSGROHE”
-
Accessories
Bath
accessories :
“COTTO”, “RELY”, “POSENG”,
“VYV”, “MEGA”
“POM
D’OR”, “COSMIC”, “NITO”
Home accessories :
“FLOU”
Fabric, carpet,
wall paper : “FLOU”
-
Hardware
products :
“WESLOCK”, “MESTRE”
Knob lock set,
lever handle
Security door,
hinges, door
- Furniture
Modern furnishings : “MOROSO”, “FENDI”,
“KARTELL”, “LEMA”
“CALLIGARIS”, “LAPALMA”,
“ARKECTIPO”
“NUBE”,
“CIACCI KREATY”, “ARFLEX”,
“MOOI”,
“KENZO”
Contemporary &
luxurious : “RALPH LAUREN”,
“HENREDON”, “STICKLEY”
Furnishings “STENLEY”,
“SCHNADIG”, “BERKLINE”
“BENCHCRAFT”
Home items
- Lightings :
“RALPH LAUREN”, “MOOOI”,
“EUROPA”,
“KARTELL”,
“ORIGINAL BTC”
- Kitchen
ware : “BINOVA”, “SIEMATIC”,
“MIELE”, “AMANA”,
“ELICA”
- Home
decoration & gift items
- Home décor [classic/modern types] : vase, sculpture,
glass, glassing piece,
picture, &
miscellaneous.
- Kitchen and
appliances :
“BINOVA”, “SIEMATIC”, “MIELE”,
“AMANA”
“ELICA”
The subject also
provides interior design
and maintenance services.
IMPORT [COUNTRIES]
50% of the
products is imported
from United States of
America, France, Spain,
Italy, Germany, Switzerland,
Finland, Republic of
China and Hong
Kong.
MAJOR SUPPLIERS
American Standard Sanitaryware
[Thailand] Public Co., Ltd. : Thailand
Karat Sanitaryware Public
Co., Ltd. : Thailand
Franke [Thailand] Co.,
Ltd. : Thailand
Royal Ceramic Industry
Co., Ltd. : Thailand
Nahm Sanitaryware Co.,
Ltd. : Thailand
Hafele [Thailand] Co.,
Ltd. : Thailand
Kohler [Thailand] Public
Company Limited : Thailand
SALES [LOCAL]
100% of its
products is sold
locally to retailers
and end-users.
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.
RELATED AND AFFILIATED
COMPANY
Grand Home Mart
Co., Ltd.
Business Type
: Distributor of
home decorative products.
CREDIT
Sales are by
cash or on
the credit 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.
BUSINESS TRANSACTION
The products are
sold by cash
and credit, with the
maximum credit given
at 30-60 days.
The subject is not found
to have problem
on its account
receivable.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok 10500]
[Srinakarin Branch:
436 Moo 5,
Srinakarin Rd., Samrongnua,
Muang, Samutprakarn]
Kasikornbank Public Co., Ltd.
[Patunam-Pathumwan Branch :
703/21 New Petchburi
Rd., Rajthevee, Bangkok 10400]
Bank of Ayudhya
Public Co., Ltd.
[Head Office :
1222 Rama 3
Rd., Bangpongpang, Yannawa,
Bangkok 10120]
EMPLOYMENT
The subject employs
180 staff. [office
staff, sales staff
and workers]
LOCATION DETAILS
The premise is
owned for administrative office
and showroom in a
2 storey building
of 1 row
shop house at the
heading address. Premise
is located in
industrial area.
BRANCHES/SHOWROOMS
·
622
Sukhumvit Rd., Klongton,
Klongtoey, Bangkok 10110.
·
9/108
Moo 1, Nongbon,
Prawet, Bangkok 10250.
·
14/57
Moo 1, Srinakarin
Rd., Nongbon, Prawet,
Bangkok 10250.
·
41/1
Moo 1, T. Homsil,
A. Bangpakong, Chachoengsao 24130.
·
555/55
Sukhumvit 55 Rd.,
Klongtonnua, Wattana, Bangkok
10110.
·
78 Moo 5, T.
Vichit, A. Muang, Phuket
83000.
·
818
Sukhumvit 55 Rd.,
Klongtonnua, Wattana, Bangkok
10110.
·
Rm. 343, 3rd Flr.,
Siam Paragon Shopping
Center, Rama 1
Rd., Pathumwan, Bangkok
10330.
COMMENT
Residence furniture and decoration
products including sanitary
and bathroom products
have grown significantly since
the year 2011 in line with improvement
of property sector. The
decoration items especially sanitary wares have
also shown satisfactory
growth as market remained healthy.
The business growth has been
driven by the steady recovery in
the property market, condominium
and house. Moreover, market for home renovations and
improvements also has
healthy growth.
FINANCIAL INFORMATION
The capital was
registered at Bht.
30,000,000 divided into 300,000
shares of Bht.
100 each.
The capital was
increased later as
followings:
Bht. 60,000,000
on August 2,
1994
Bht. 240,000,000
on October 31,
1996
Bht. 332,400,000
on July 8,
1997
On September 4, 2006, the
capital was decreased to Bht.
320,400,000 divided into 3,204,000
shares of Bht.
100 each.
MAIN SHAREHOLDERS : [as at
April 30, 2012]
at Bht. 320,400,000 of
capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Grand Home Mart Co., Ltd. Nationality: Thai Address : 89/90 Moo 6,
Ngamwongwan Rd.,
Tungsonghong, Donmuang, Bangkok
10210 |
831,000 |
25.94 |
|
J & W Development
Co., Ltd. Nationality: Thai Address : 555 Sukhumvit
55 Rd., Klongtonnua,
Wattana, Bangkok |
888,000 |
27.71 |
|
Mrs. Pannee Jirapongwattana Nationality: Thai Address : 39/1 Sukhumvit
34 Rd., Klongton,
Prakanong, Bangkok 10110 |
282,000 |
8.80 |
|
Mr. Prasit Jirapongwattana Nationality: Thai Address : 222/21-22 Larnluang
Rd., Klongmahanak,
Promprab, Bangkok 10100 |
272,000 |
8.49 |
|
Ms. Suparat Jirapongwattana Nationality: Thai Address : 222/21-22 Larnluang
Rd., Klongmahanak,
Promprab, Bangkok 10100 |
272,000 |
8.49 |
|
Ms. Kamolrat Jirapongwattana Nationality: Thai Address : 222/21-22 Larnluang
Rd., Klongmahanak,
Promprab, Bangkok 10100 |
272,000 |
8.49 |
|
Mr. Rachan Thayanuwat Nationality: Thai Address : 82/9 Moo 6, Ngamwongwan
Rd.,
Tungsonghong, Donmuang, Bangkok
10210 |
137,000 |
4.28 |
|
|
|
|
|
Mrs. Prapai Thayanuwat Nationality: Thai Address : 82/33 Moo 6, Ngamwongwan
Rd.,
Tungsonghong, Donmuang, Bangkok
10210 |
130,000 |
4.06 |
|
Mr. Pradit Sintavanarong Nationality: Thai Address : 222/24 Larnluang
Rd., Klongmahanark,
Pomprab, Bangkok 10100 |
120,000 |
3.74 |
Total Shareholders : 9
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Kajornsak Supawatanakiat No. 6121
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 Equivalent |
24,528,811.54 |
8,942,441.31 |
3,474,407.88 |
|
Trade Accounts Receivable |
73,846,198.72 |
99,933,340.13 |
105,946,872.98 |
|
Short-term Investment |
- |
- |
5,170,350.85 |
|
Short-term Lending to Related
Companies |
45,000,000.00 |
175,000,000.00 |
90,000,000.00 |
|
Inventories |
339,758,656.24 |
305,095,086.30 |
292,170,378.49 |
|
Other Current Assets
|
19,174,174.95 |
11,252,219.15 |
11,740,487.10 |
|
|
|
|
|
|
Total Current Assets
|
502,307,841.45 |
600,223,086.89 |
508,502,497.30 |
|
Cash at Bank pledged as
a Collateral |
5,266,673.87 |
5,195,944.08 |
- |
|
Investment in Subsidiaries Companies |
7,293,100.00 |
23,500,000.00 |
23,500,000.00 |
|
Fixed Assets |
41,338,643.09 |
47,124,694.65 |
44,676,126.07 |
|
Leasehold Right |
82,125,661.34 |
86,451,474.74 |
90,777,288.14 |
|
Other Non-current Assets |
38,729,954.82 |
76,791,545.28 |
50,176,099.16 |
|
Total Assets |
677,061,874.57 |
839,286,745.64 |
717,632,010.67 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Bank Overdraft and Short-term Loan from Financial
Institutions |
303,425,665.20 |
457,036,568.18 |
40,907,094.48 |
|
Trade Accounts & Notes
Payable |
30,629,842.33 |
30,097,970.27 |
42,245,118.72 |
|
Short-term Loan from Financial Institutions |
- |
- |
314,652,853.87 |
|
Current Portion of Long-term Loans |
- |
- |
24,027,500.55 |
|
Current Portion of Financial
Lease Contract Payable |
406,649.76 |
581,580.00 |
581,580.00 |
|
Other Current Liabilities |
133,889,940.05 |
152,055,477.47 |
99,202,446.33 |
|
|
|
|
|
|
Total Current Liabilities |
468,352,097.34 |
639,771,595.92 |
521,616,593.95 |
|
Financial Lease Contract Liabilities, Net of Current Portion |
16,009.90 |
368,226.00 |
949,806.00 |
|
Employee Benefits Obligation |
3,571,983.04 |
- |
- |
|
|
|
|
|
|
Total Liabilities |
471,940,090.28 |
640,139,821.92 |
522,566,399.95 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 3,204,000 shares |
320,400,000.00 |
320,400,000.00 |
320,400,000.00 |
|
|
|
|
|
|
Capital Paid |
320,400,000.00 |
320,400,000.00 |
320,400,000.00 |
|
Unappropriated [Deficit] |
[115,278,215.71] |
[121,253,076.28] |
[125,334,389.28] |
|
Total Shareholders' Equity |
205,121,784.29 |
199,146,923.72 |
195,065,610.72 |
|
Total Liabilities & Shareholders' Equity |
677,061,874.57 |
839,286,745.64 |
717,632,010.67 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales Income |
808,175,686.62 |
498,532,562.04 |
479,546,985.23 |
|
Services Income |
21,739,572.40 |
13,655,348.83 |
- |
|
Other Income |
29,942,958.74 |
25,552,759.66 |
33,910,276.05 |
|
Total Revenues |
859,858,217.76 |
537,740,670.53 |
513,457,261.28 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Services |
599,502,659.90 |
322,455,990.64 |
329,315,874.29 |
|
Selling Expenses |
25,953,193.64 |
26,473,754.60 |
21,290,194.12 |
|
Administrative Expenses |
186,501,639.64 |
173,286,421.18 |
149,858,590.52 |
|
Other Expenses |
19,114,630.56 |
627,979.45 |
6,028,885.92 |
|
Total Expenses |
831,072,123.74 |
522,844,145.87 |
506,493,544.85 |
|
|
|
|
|
|
Profit / [Loss] Before
Financial Cost & Income Tax |
28,786,094.02 |
14,896,524.66 |
6,963,716.43 |
|
Financial Cost |
[13,038,353.34] |
[10,815,211.66] |
[13,279,191.61] |
|
Profit / [Loss] Before Income Tax |
15,747,740.68 |
4,081,313.00 |
[6,315,475.18] |
|
Income Tax |
[9,772,880.11] |
- |
- |
|
Net Profit / [Loss] |
5,974,860.57 |
4,081,313.00 |
[6,315,475.18] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.07 |
0.94 |
0.97 |
|
QUICK RATIO |
TIMES |
0.31 |
0.44 |
0.39 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
20.08 |
10.87 |
10.73 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.23 |
0.61 |
0.67 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
206.86 |
345.35 |
323.83 |
|
INVENTORY TURNOVER |
TIMES |
1.76 |
1.06 |
1.13 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
32.48 |
71.22 |
80.64 |
|
RECEIVABLES TURNOVER |
TIMES |
11.24 |
5.13 |
4.53 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
18.65 |
34.07 |
46.82 |
|
CASH CONVERSION CYCLE |
DAYS |
220.69 |
382.49 |
357.65 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
72.24 |
62.96 |
68.67 |
|
SELLING & ADMINISTRATION |
% |
25.60 |
39.00 |
35.69 |
|
INTEREST |
% |
1.57 |
2.11 |
2.77 |
|
GROSS PROFIT MARGIN |
% |
31.37 |
42.03 |
38.40 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.47 |
2.91 |
1.45 |
|
NET PROFIT MARGIN |
% |
0.72 |
0.80 |
(1.32) |
|
RETURN ON EQUITY |
% |
2.91 |
2.05 |
(3.24) |
|
RETURN ON ASSET |
% |
0.88 |
0.49 |
(0.88) |
|
EARNING PER SHARE |
BAHT |
1.86 |
1.27 |
(1.97) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.70 |
0.76 |
0.73 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.30 |
3.21 |
2.68 |
|
TIME INTEREST EARNED |
TIMES |
2.21 |
1.38 |
0.52 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
62.03 |
6.81 |
|
|
OPERATING PROFIT |
% |
93.24 |
113.92 |
|
|
NET PROFIT |
% |
46.40 |
164.62 |
|
|
FIXED ASSETS |
% |
(12.28) |
5.48 |
|
|
TOTAL ASSETS |
% |
(19.33) |
16.95 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 62.03%. Turnover has increased from THB 512,187,910.87
in 2010 to THB 829,915,259.02 in 2011. While net profit has increased from THB
4,081,313.00 in 2010 to THB 5,974,860.57 in 2011. And total assets has
decreased from THB 839,286,745.64 in 2010 to THB 677,061,874.57 in 2011.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
31.37 |
Impressive |
Industrial
Average |
11.02 |
|
Net Profit Margin |
0.72 |
Acceptable |
Industrial
Average |
1.05 |
|
Return on Assets |
0.88 |
Deteriorated |
Industrial
Average |
2.11 |
|
Return on Equity |
2.91 |
Acceptable |
Industrial
Average |
5.65 |
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 31.37%. When compared with
the industry average, the ratio of the company was higher, indicated that
company was more profitable than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company's figure is 0.72%.
When compared with the industry average, the ratio of the company was lower.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. When compared with the
industry average, it was lower, the company's figure is 0.88%.
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 2.91%.
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 |
1.07 |
Acceptable |
Industrial
Average |
1.58 |
|
Quick Ratio |
0.31 |
|
|
|
|
Cash Conversion Cycle |
220.69 |
|
|
|
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 1.07 times in 2011, increased from 0.94 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 0.31 times in 2011,
decreased from 0.44 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 221 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.70 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
2.30 |
Risky |
Industrial
Average |
1.62 |
|
Times Interest Earned |
2.21 |
Impressive |
Industrial
Average |
1.70 |
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 2.21 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 0.7 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
20.08 |
Impressive |
Industrial
Average |
6.74 |
|
Total Assets Turnover |
1.23 |
Acceptable |
Industrial
Average |
1.99 |
|
Inventory Conversion Period |
206.86 |
|
|
|
|
Inventory Turnover |
1.76 |
Deteriorated |
Industrial
Average |
5.00 |
|
Receivables Conversion Period |
32.48 |
|
|
|
|
Receivables Turnover |
11.24 |
Impressive |
Industrial
Average |
4.64 |
|
Payables Conversion Period |
18.65 |
|
|
|
The company's Account Receivable Ratio is calculated as 11.24 and 5.13 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 345 days at the
end of 2010 to 207 days at the end of 2011. This represents a positive trend.
And Inventory turnover has increased from 1.06 times in year 2010 to 1.76 times
in year 2011.
The company's Total Asset Turnover is calculated as 1.23 times and 0.61
times in 2011 and 2010 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.37 |
|
|
1 |
Rs.82.07 |
|
Euro |
1 |
Rs.70.03 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.