MIRA INFORM REPORT
|
Report Date : |
22.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
SIAM COMPRESSOR
INDUSTRY CO., LTD.
[SCI] |
|
|
|
|
Registered Office : |
87/10 Moo 2, Laem Chabang Industrial Estate, Sukhumvit
Rd., Thungsukhla, Sriracha,
Cholburi 20230, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2012 |
|
|
|
|
Date of Incorporation : |
07.12.1988 |
|
|
|
|
Com. Reg. No.: |
0105531096240 [Former :
9626/2531] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor
& Exporter of Compressor |
|
|
|
|
No. of Employees : |
2,500 |
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
SIAM COMPRESSOR
INDUSTRY CO., LTD.
[SCI]
SUMMARY
BUSINESS
ADDRESS : 87/10 MOO 2, LAEM CHABANG
INDUSTRIAL ESTATE,
SUKHUMVIT ROAD,
THUNGSUKHLA,
SRIRACHA, CHOLBURI
20230, THAILAND
TELEPHONE : [66] 38
490-900-10
FAX :
[66] 38
490-919, 490-917
E-MAIL
ADDRESS : marketing@siamcompressor.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1988
REGISTRATION
NO. : 0105531096240 [Former : 9626/2531]
TAX
ID NO. : 3101597189
CAPITAL REGISTERED : BHT. 1,603,800,000
CAPITAL PAID-UP : BHT.
1,603,800,000
SHAREHOLDER’S PROPORTION : JAPANESE :
98%
THAI
: 2%
FISCAL YEAR CLOSING DATE : MARCH
31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
TAKASHI YAMAMOTO, JAPANESE
MANAGING DIRECTOR
NO.
OF STAFF : 2,500
LINES
OF BUSINESS : COMPRESSOR
MANUFACTURER, DISTRIBUTOR
& 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 December
7, 1988 as
a private limited
company under the
name style SIAM
COMPRESSOR INDUSTRY CO., LTD., by
Japanese and Thai groups,
with the business
objective to produce
rotary compressor, scroll
compressor and inverter
compressor for air
conditioning applications. Its
scroll compressor used
technology of Frame
Compliance Mechanism [FCM] from
Mitsubishi Electric Corporation
in Japan. It
currently employs 2,500
staff.
It was formerly
a joint venture
between, Siam Cement Group,
Thailand and Mitsubishi
Electric Corporation [MELCO]
in Japan. Presently, the
subject becomes a joint investment
among Mitsubishi Electric
Corporation, Mitsubishi Electric
Consumer Products [Thailand] Co., Ltd.,
and Kanyong Electric
Public Company Limited,
with holding around
78.30%, 19.70% and
2.00% of the subject’s total shares
respectively. The subject
was granted promotional
privileges by the
Board of Investment
for compressor production.
It is also
the first rotary
compressor company and
factory in Thailand.
It has achieved
the quality system
standards ISO 9001, ISO 14001
and TIS 19001 certification.
The subject’s registered
address is 87/10 Moo 2, Laem
Chabang Industrial Estate,
Sukhumvit Rd., Thungsukhla,
Sriracha, Cholburi 20230,
and this is the
company’s current operation
address.
THE
BOARD OF DIRECTORS
|
Name |
Nationality |
Age |
|
|
|
|
|
Mr. Pramont Sutheewongs |
Thai |
74 |
|
Mr. Tharin Chanthravisuta |
Thai |
59 |
|
Mr. Yoshifumi Beppu |
Japanese |
62 |
|
Mr. Kenji Ito |
Japanese |
63 |
|
Mr. Motohiko Ishikawa |
Japanese |
50 |
|
Mr. Yoshiaki Kitano |
Japanese |
56 |
|
Mr. Takashi Yamamoto |
Japanese |
54 |
|
Mr. Takeshi Fushiki |
Japanese |
46 |
|
Mr. Seiki Sakume |
Japanese |
62 |
AUTHORIZED
PERSON
Two of the
above directors can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Takashi Yamamoto
is the Managing Director and
Factory Manager.
He is Japanese
nationality with the
age of 54
years old.
Mr. Tharin Chanthravisuta is
the Deputy Managing
Director.
He is Thai
nationality with the
age of 59
years old.
Mr. Panthep Krairiksh
is the Marketing
Manager.
He is Thai
nationality.
Mr. Jaidee Anan-niyom
is the Sales
Manager.
He is Thai
nationality.
Mrs. Pornnapa Boonprasert is
the Finance Manager.
She is Thai
nationality.
Ms. Patchanee Minratanakorn is
the Human Resources
and Administration Manager.
She is Thai
nationality.
BUSINESS
OPERATIONS
The subject’s activity
are manufacturer, distributor
and exporter of
rotary compressor, scroll
compressors and inverter
compressor for air-conditioning applications
with smaller vibration,
lower noise, more
compact and lightweight body, ranging
from 7,000 BTU/h
to 42,000 BTU/h,
which are available for:
n Refrigerate : R-22
and R-407C
n Electricity System : 50Hz and
60Hz
PRODUCTION
CAPACITY
3,500,000 units/year
MAJOR
BRAND
“MITSUBISHI”
PURCHASE
80% of its
raw materials and
accessories are purchased
from local suppliers,
the
remaining 20% and
machineries are imported from
Japan, United States of America,
Taiwan, Republic of
China and Germany.
MAJOR SUPPLIERS
Mitsubishi Electric Corporation
: Japan
Siam NPR Co., Ltd.
:
Thailand
SALES
[LOCAL]
20% of its
products is sold
locally to manufacturers
and end-users.
EXPORT
[COUNTRY]
80% of the
products is exported
to Japan, Argentina,
Taiwan, Singapore,
Republic of China,
Hong Kong, Indonesia,
Australia, Vietnam, Korea,
United Kingdom and
Middle East countries.
MAJOR
CUSTOMERS
Mitsubishi Electric Corporation :
Japan
Kang Yong Electric
Public Co., Ltd. : Thailand
Mitsubishi Electric Asia Pte., Ltd. : Singapore
Taiwan Kolin Co.,
Ltd. : Taiwan
Mitsubishi Electric [UK]
Ltd. : U.K.
Daikin Industries [Thailand] Co., Ltd. :
Thailand
Mitsubishi Electric Consumer
Products [Thailand] Co., Ltd. :
Thailand
Thai Samsung Electronics
Co., Ltd. : Thailand
PARENT
COMPANY
Mitsubishi Electric Corporation
Address : :
2-3 Marunouchi, Chiyoda-ku,
Tokyo, Japan
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
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.
BANKING
Kasikornbank Public Co., Ltd.
[Head Office
: 1 Rajburana
Road, Rajburana, Bangkok
10140]
Krung Thai Bank
Public Co., Ltd.
[Head Office
: 35 Sukhumvit
Road, Klongtoeynua, Wattana,
Bangkok 10110]
The Siam Commercial
Bank Public Co., Ltd.
[Head Office
: 9 Ratchadapisek
Road, Jatujak, Bangkok
10900]
EMPLOYMENT
The subject employs
2,500 staff. [office staff
and factory workers]
LOCATION
DETAILS
The premise is
owned for operating
office and factory I
at the heading
address. Premise is
located in industrial
area.
Factory II is
located at 38/24
Moo 5, Thungsukhla,
Sriracha, Chonburi 20230.
Marketing Office:
32nd Flr., S.M. Tower, 979/108-110
Phaholyothin Rd., Samsennai,
Phyathai, Bangkok 10400,
Tel. : [66]
2298-0378, Fax. :
[66] 2298-0411-2.
COMMENT
The subject’s operating
performances were satisfactory
in relation to
high demand of
the products in
both domestic and
export markets. The
product quality is
well-accepted internationally.
The productions are
produced with the
best quality - world standard
that meet the
customers need and
environmentally benign.
In general,
its business is promising
in line with
the improvement and growth
of industrial sector.
FINANCIAL
INFORMATION
The capital was
initially registered at
Bht. 1,000,000 divided
into 10,000 shares
of Bht. 100
each.
The capital was
increased later as
followed:
Bht. 180,000,000
on February 22, 1989
Bht. 360,000,000
on October 30,
1992
Bht. 720,000,000
on July 1,
1999
Bht. 1,188,000,000 on
April 19, 2003
Bht. 1,603,800,000 on
August 26, 2003
The latest registered capital was increased to
Bht. 1,603,800,000 divided
into 16,038,000 shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE
[as
at July 20,
2012]
|
NAME |
HOLDING |
% |
|
Mitsubishi Electric Corporation
Nationality: Japanese Address : 2-3
Marunouchi, Chiyoda-ku, Tokyo,
Japan |
12,557,754 |
78.30 |
|
Mitsubishi Electric Consumer Products [Thailand] Co., Ltd. Nationality: Japanese Address : 700/406
Moo 7, Donhuaroh,
Muang, Chonburi |
3,159,486 |
19.70 |
|
Kang Yong Electric
Public Co., Ltd. Nationality: Thai Address : 67
Moo 1, Bangan-Trad
Rd., Bangchalong,
Bangplee, Samutprakarn |
320,760 |
2.00 |
Total Shareholders : 3
Share Structure [as
at July 20,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
320,760 |
2.00 |
|
Foreign - Japanese |
2 |
15,717,240 |
98.00 |
|
Total |
3 |
16,038,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Siriphen Sukcharoenyingyong No.
3636
BALANCE SHEET [BAHT]
The latest financial figures published
as at March
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
3,144,808,329 |
1,658,270,868 |
2,705,515,333 |
|
Short-term Investment |
- |
2,530,000,000 |
- |
|
Trade Accounts Receivable
|
1,595,464,066 |
1,648,803,610 |
1,526,698,042 |
|
Short-term Loan to
Related Company |
189,092,453 |
54,984,330 |
56,672,033 |
|
Inventories |
1,657,995,145 |
1,287,954,084 |
1,055,486,711 |
|
Other Current Assets
|
129,227,078 |
39,269,826 |
24,566,426 |
|
|
|
|
|
|
Total Current Assets
|
6,716,587,071 |
7,219,282,718 |
5,368,938,545 |
|
Investment in Associated Company |
686,462,400 |
686,462,400 |
686,462,400 |
|
Fixed Assets |
4,259,096,341 |
2,675,507,407 |
3,152,346,024 |
|
Intangible Assets |
11,114,864 |
5,353,357 |
5,679,356 |
|
Other Non-current Assets |
62,341,656 |
55,623,249 |
16,419,386 |
|
Total Assets |
11,735,602,332 |
10,642,229,131 |
9,229,845,711 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable
|
747,132,101 |
778,773,170 |
808,349,060 |
|
Other Payable |
1,118,718,822 |
493,610,021 |
- |
|
Related Company Payable |
- |
- |
168,144,343 |
|
Accrued Dividend |
593,406,000 |
577,368,000 |
336,798,000 |
|
Accrued Income Tax |
97,597,094 |
119,436,317 |
45,109,378 |
|
Other Current Liabilities |
1,451,152 |
594,357 |
76,083,410 |
|
|
|
|
|
|
Total Current Liabilities |
2,558,305,169 |
1,969,781,865 |
1,434,484,191 |
|
|
|
|
|
|
Estimated Liabilities for Employee Benefits |
107,084,355 |
96,820,854 |
- |
|
Total Liabilities |
2,665,389,524 |
2,066,602,719 |
1,434,484,191 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 16,038,000 shares |
1,603,800,000 |
1,603,800,000 |
1,603,800,000 |
|
|
|
|
|
|
Capital Paid |
1,603,800,000 |
1,603,800,000 |
1,603,800,000 |
|
Retained Earnings: Appropriated for Statutory Reserve |
160,380,000 |
160,380,000 |
160,380,000 |
|
Unappropriated |
7,306,032,808 |
6,811,446,412 |
6,031,181,520 |
|
Total Shareholders' Equity |
9,070,212,808 |
8,575,626,412 |
7,795,361,520 |
|
Total Liabilities &
Shareholders' Equity |
11,735,602,332 |
10,642,229,131 |
9,229,845,711 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
8,467,262,306 |
9,375,076,926 |
7,683,874,248 |
|
Dividend Income |
489,200,000 |
397,400,000 |
976,000,000 |
|
Other Income |
188,195,781 |
80,118,951 |
55,309,027 |
|
Gain on Exchange Rate |
33,841,520 |
30,654,691 |
- |
|
Total Revenues |
9,178,499,607 |
9,883,250,568 |
8,715,183,275 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
6,648,054,340 |
7,196,742,418 |
6,200,532,673 |
|
Selling Expenses |
338,988,517 |
276,872,568 |
227,947,779 |
|
Administrative Expenses |
535,952,958 |
435,876,850 |
373,536,845 |
|
Loss on Exchange
Rate |
- |
- |
15,116,546 |
|
Total Expenses |
7,522,995,815 |
7,909,491,836 |
6,817,133,843 |
|
Profit before Income
Tax |
1,655,503,792 |
1,973,758,732 |
1,898,049,432 |
|
Income Tax |
[182,599,396] |
[192,808,220] |
[80,871,035] |
|
|
|
|
|
|
Net Profit / [Loss] |
1,472,904,396 |
1,780,950,512 |
1,817,178,397 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.63 |
3.67 |
3.74 |
|
QUICK RATIO |
TIMES |
1.93 |
2.99 |
2.99 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.99 |
3.50 |
2.44 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.72 |
0.88 |
0.83 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
91.03 |
65.32 |
62.13 |
|
INVENTORY TURNOVER |
TIMES |
4.01 |
5.59 |
5.87 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
68.78 |
64.19 |
72.52 |
|
RECEIVABLES TURNOVER |
TIMES |
5.31 |
5.69 |
5.03 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
41.02 |
39.50 |
47.58 |
|
CASH CONVERSION CYCLE |
DAYS |
118.79 |
90.02 |
87.07 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
78.51 |
76.76 |
80.70 |
|
SELLING & ADMINISTRATION |
% |
10.33 |
7.60 |
7.83 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
29.89 |
28.66 |
32.73 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
19.55 |
21.05 |
24.70 |
|
NET PROFIT MARGIN |
% |
17.40 |
19.00 |
23.65 |
|
RETURN ON EQUITY |
% |
16.24 |
20.77 |
23.31 |
|
RETURN ON ASSET |
% |
12.55 |
16.73 |
19.69 |
|
EARNING PER SHARE |
BAHT |
91.84 |
111.05 |
113.30 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.23 |
0.19 |
0.16 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.29 |
0.24 |
0.18 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(9.68) |
22.01 |
|
|
OPERATING PROFIT |
% |
(16.12) |
3.99 |
|
|
NET PROFIT |
% |
(17.30) |
(1.99) |
|
|
FIXED ASSETS |
% |
59.19 |
(15.13) |
|
|
TOTAL ASSETS |
% |
10.27 |
15.30 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -9.68%. Turnover has decreased from THB
9,375,076,926.00 in 2011 to THB 8,467,262,306.00 in 2012. While net profit has decreased
from THB 1,780,950,512.00 in 2011 to THB 1,472,904,396.00 in 2012. And total
assets has increased from THB 10,642,229,131.00 in 2011 to THB
11,735,602,332.00 in 2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
29.89 |
Impressive |
Industrial
Average |
10.97 |
|
Net Profit Margin |
17.40 |
Impressive |
Industrial
Average |
2.80 |
|
Return on Assets |
12.55 |
Impressive |
Industrial
Average |
4.31 |
|
Return on Equity |
16.24 |
Impressive |
Industrial
Average |
9.98 |
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 29.89%. 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 17.4%,
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
12.55%, 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 16.24%, 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 :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
2.63 |
Impressive |
Industrial
Average |
1.61 |
|
Quick Ratio |
1.93 |
|
|
|
|
Cash Conversion Cycle |
118.79 |
|
|
|
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 2.63 times in 2012, decreased from 3.67 times, then it is generally
considered to have good short-term financial strength. When compared with the
industry average, the ratio of the company was higher, indicated that company
was an efficient operator in a dominant position within its industry.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 1.93 times in 2012,
decreased from 2.99 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 119 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.23 |
Impressive |
Industrial
Average |
0.41 |
|
Debt to Equity Ratio |
0.29 |
Impressive |
Industrial
Average |
1.03 |
|
Times Interest Earned |
- |
|
Industrial
Average |
7.83 |
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.23 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 Uptrend
ACTIVITY :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
1.99 |
Deteriorated |
Industrial
Average |
4.26 |
|
Total Assets Turnover |
0.72 |
Deteriorated |
Industrial
Average |
1.50 |
|
Inventory Conversion Period |
91.03 |
|
|
|
|
Inventory Turnover |
4.01 |
Acceptable |
Industrial
Average |
6.08 |
|
Receivables Conversion Period |
68.78 |
|
|
|
|
Receivables Turnover |
5.31 |
Satisfactory |
Industrial
Average |
5.47 |
|
Payables Conversion Period |
41.02 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.31 and 5.69 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 increased from 65 days at the
end of 2011 to 91 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 5.59 times in year 2011 to 4.01 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.72 times and 0.88
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 Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Uptrend
Receivables Turnover Downtrend
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.28 |
|
UK Pound |
1 |
Rs.82.06 |
|
Euro |
1 |
Rs.70.23 |
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.