MIRA
INFORM REPORT
|
Report Date : |
11.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
M & R
LABORATORY CO., LTD. |
|
|
|
|
Registered Office : |
1/29
Moo 5, Rojana
Industrial Park, T. Kanham, A. U-Thai,
Ayudhya 13120 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
25.03.2005 |
|
|
|
|
Com. Reg. No.: |
0145548000666 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, distributor
and exporter of food ingredients |
|
|
|
|
No. of Employees : |
100 |
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
M & R LABORATORY CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 1/29
MOO 5, ROJANA
INDUSTRIAL PARK,
T.
KANHAM, A. U-THAI, AYUDHYA
13120
TELEPHONE : [66] 35
719-700-6
FAX :
[66] 35
719-707
E-MAIL
ADDRESS : chamadol@gogi-foods.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2005
REGISTRATION
NO. : 0145548000666
TAX
ID NO. : 3031797147
CAPITAL REGISTERED : BHT. 65,000,000
CAPITAL PAID-UP : BHT.
65,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. RISITH CHOMCHERNGPAET, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 100
LINES
OF BUSINESS : FOOD
INGREDIENTS
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on March 25,
2005 as a
private limited company under
the registered name M
& R LABORATORY CO.,
LTD. by Thai groups.
Its business objective
is to manufacture and
distribute food ingredients
to both domestic and
international markets. It
currently employs approximate
100 staff.
The
subject achieved many international
standard certifications, e.g.
Good Manufacturing Practice (GMP), Hazard Analysis and Critical Control Point
(HACCP), Halal and ISO9001:2000
The
subject’s registered address
is 1/29 Moo
5, Rojana Industrial
Park, T. Kanham,
A. U-Thai,
Ayudhya 13120, and
this is the
subject’s current operation
address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Risith Chomcherngpaet |
[x] |
Thai |
78 |
|
Mr. Cherngchay Chomcherngpaet |
|
Thai |
50 |
|
Mr. Chamadol Chomcherngpaet |
|
Thai |
49 |
|
Mr. Ronayuth Chomcherngpaet |
|
Thai |
48 |
|
Mr. Surarith Chomcherngpaet |
|
Thai |
43 |
|
Pol. Capt. Jesada
Chomcherngpaet |
|
Thai |
40 |
|
Mrs. Anchana Booncharoensombat |
[x] |
Thai |
52 |
|
Mrs. Chayuda Withayakul |
|
Thai |
42 |
AUTHORIZED PERSON
Any of the
mentioned directors [x]
can jointly sign
with any two
of the rest directors on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Risith Chomcherngpaet is
the Managing Director.
He is Thai
nationality with the
age of 78
years old.
Mrs. Anchana Booncharoensombat is
the Deputy Managing
Director.
She is Thai
nationality with the
age of 52 years
old.
Mr. Chamadol Chomcherngpaet is
the G.M. and
Sales & Marketing Manager.
He is Thai
nationality with the
age of 49
years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing, distributing and
exporting various kinds
of food ingredients
as follows:
Products Brands
Tempura flour “GOGI”, “GOLDEN
SHRIMP
Bread crumbs “GOGI”
Tempura flour
with 2 flavors “GOGI”
Flavours powder “GOGI SUCHEF”
Thai herb & spice powder “GOGI SUCHEF”
Thai soups & curry “GOGI
SUCHEF”
PURCHASE
Raw materials are
purchased from suppliers
both domestic and
overseas, mainly in
Republic of China,
Japan and India.
SALES
80% of the
products is sold
locally to wholesalers
and end-users, the
remaining 20% is
exported to Japan,
Malaysia, Hong Kong,
Laos, Indonesia, India,
Singapore, Brunei, and
Vietnam.
RELATED AND AFFILIATED
COMPANIES
Malinee Food Products
Co., Ltd.
Business Type :
Importer and distributor
of food products
M & R Gogi Co.,
Ltd.
Business Type :
Distributor of foods & food ingredients
LITIGATION
Bankruptcy and
Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the
subject found at
Legal Execution Department
for the past
five years.
Others
There are no
legal suits filed
against the subject
for the past
two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
T/T.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject currently employs
approximately 100 staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
and factory at
the heading address.
Premise is located
in industrial area.
Warehouses
:
-
200/4
Moo 8, Udomsorayut
Rd., T. Chiangraknoi, A. Bangpa-in,
Ayudhya 13160.
-
939 Moo 2,
Udomsorayut Rd., T. Klongjik,
A. Bangpa-in, Ayudhya 13160.
COMMENT
The
company’s production line is developed all the time since first established. This is because of
market expansion and steadily
increased in the
demand.
It
assures high quality
by base on the concepts outlined
in the international
standard. To assure that the
customers always obtain
safe and uniform-quality products,
world recognized standards and
quality management systems
such as Good
Manufacturing Practice (GMP),
Hazard Analysis and
Critical Control Point (HACCP), Halal
and ISO9001:2000 are in
place.
It has
become a leader
in Thai market with more
than eighty percent
of market share, as well
as making GOGI
brand as a
generic name of
the tempura flour.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 25,000,000
divided into 2,500,000
shares of Bht.
10 each with
fully paid.
On
June 3, 2008,
the registered capital
was increased to
Bht. 65,000,000 divided into
6,500,000 shares of
Bht. 10 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Risith Chomcherngpaet Nationality: Thai Address : 830
Moo 18, Tesaban
Rangraknua Rd.,
Ladyao, Jatujak, Bangkok
|
850,239 |
13.08 |
|
Mrs. Chayuda Withayakul Nationality: Thai Address : 124/2
Siphya, Bangrak, Bangkok |
792,302 |
12.19 |
|
Mr. Surarith Chomcherngpaet Nationality: Thai Address : 830
Moo 18, Tesaban
Rangraknua Rd.,
Ladyao, Jatujak, Bangkok
|
766,935 |
11.80 |
|
Mrs. Anchana Booncharoensombat Nationality: Thai Address : 68/32
Moo 1, Thasai,
Muang, Nonthaburi |
750,239 |
11.54 |
|
Capt. R.N. Cherngchay
Chomcherngpaet Nationality: Thai Address : 830
Moo 18, Tesaban
Rangraknua Rd.,
Ladyao, Jatujak, Bangkok
|
750,239 |
11.54 |
|
Mr. Ronayuth Chomcherngpaet Nationality: Thai Address : 68/40
Moo 1, Thasai,
Muang, Nonthaburi |
750,239 |
11.54 |
|
Mr. Chamadol Chomcherngpaet Nationality: Thai Address : 68/36
Moo 1, Thasai,
Muang, Nonthaburi |
750,238 |
11.54 |
|
Pol. Capt. Jesada
Chomcherngpaet Nationality: Thai Address : 830
Moo 18, Tesaban
Rangraknua Rd.,
Ladyao, Jatujak, Bangkok
|
675,000 |
10.38 |
|
Malinee Food Products Co.,
Ltd. Nationality: Thai Address : 400/58-59
Tesaban Rangraknua Rd.,
Ladyao, Jatujak,
Bangkok |
281,871 |
4.34 |
|
M & R Gogi Co.,
Ltd. Nationality: Thai Address : 400/60-61
Tesaban Rangraknua Rd.,
Ladyao, Jatujak, Bangkok
|
132,698 |
2.05 |
Total Shareholders : 10
Share Structure [as
at April 30, 2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
10 |
6,500,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
10 |
6,500,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Chaiwat Aswintarangkul
No. 3238
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 Equivalents |
7,737,311.97 |
10,153,618.12 |
2,839,095.20 |
|
Trade Accounts and
Other Receivable |
25,288,484.35 |
78,111,344.57 |
103,671,285.40 |
|
Inventories |
14,031,389.60 |
33,801,435.59 |
10,475,954.44 |
|
Account Receivable Fine |
87,587,442.01 |
- |
- |
|
Revenue Department Receivable |
1,251,998.40 |
468,128.91 |
802,466.85 |
|
Deferred Interest |
763,699.41 |
762,674.34 |
522,230.91 |
|
Prepaid Expenses |
970,956.50 |
349,813.30 |
280,076.06 |
|
Prepaid Interest |
- |
47,704.56 |
- |
|
Other Current Assets
|
1,852,808.44 |
358,598.91 |
8,225.21 |
|
|
|
|
|
|
Total Current Assets
|
139,484,090.68 |
124,053,318.30 |
118,599,334.07 |
|
Lending to Director
|
- |
15,117,445.31 |
164,008.00 |
|
Lending to Related Company |
277,907.79 |
- |
1,140,000.00 |
|
Fixed Assets |
58,564,406.21 |
130,613,630.97 |
136,883,474.41 |
|
Work in Constructor |
19,497,140.70 |
8,075,175.53 |
466,000.00 |
|
Other Deposit |
326,250.00 |
42,500.00 |
20,972.90 |
|
Total Assets |
218,149,795.38 |
277,902,070.11 |
257,273,789.38 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Bank Overdraft |
1,846,315.93 |
11,874,701.72 |
8,615,269.50 |
|
Trade Accounts and
Other Payable |
3,991,112.48 |
6,704,153.34 |
4,567,747.38 |
|
Short-term Loan |
- |
54,547,698.87 |
35,228,223.58 |
|
Current Portion of
Long-term Loans |
21,048,000.00 |
22,056,000.00 |
21,048,000.00 |
|
Current Portion of Hire-purchase Payable |
923,951.46 |
845,226.24 |
654,000.48 |
|
Accrued Expenses |
4,982,352.89 |
5,242,356.76 |
8,756,846.34 |
|
Accrued Interest |
445,061.19 |
461,551.11 |
4,344,966.89 |
|
Accrued Income Tax |
- |
64,652.33 |
160,223.02 |
|
Other Current Liabilities |
3,109,932.11 |
1,309,627.75 |
857,802.79 |
|
|
|
|
|
|
Total Current Liabilities |
36,346,726.06 |
103,105,968.12 |
84,233,079.98 |
|
Long-term Loan |
20,138,000.00 |
40,072,000.00 |
58,726,000.00 |
|
Loan from Related
Company |
- |
10,392,005.33 |
- |
|
Loan Director |
4,495,821.00 |
- |
- |
|
Hire-purchase Payable |
916,254.88 |
426,996.50 |
547,181.16 |
|
Employee Benefits Liabilities |
1,178,446.60 |
- |
- |
|
Total Liabilities |
63,075,248.54 |
153,996,969.95 |
143,506,261.14 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 6,500,000 shares |
65,000,000.00 |
65,000,000.00 |
65,000,000.00 |
|
|
|
|
|
|
Capital Paid |
65,000,000.00 |
65,000,000.00 |
65,000,000.00 |
|
Retained Earnings: Appropriated for Statutory Reserve |
1,800,000.00 |
1,800,000.00 |
- |
|
Unappropriated |
88,274,546.84 |
57,105,100.16 |
48,767,528.24 |
|
Total Shareholders' Equity |
155,074,546.84 |
123,905,100.16 |
113,767,528.24 |
|
Total Liabilities & Shareholders' Equity |
218,149,795.38 |
277,902,070.11 |
257,273,789.38 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales Income |
238,207,432.90 |
252,026,391.51 |
215,197,775.35 |
|
Other Income |
59,919.00 |
248,233.66 |
791,541.50 |
|
Total Revenues |
238,267,351.90 |
252,274,625.17 |
215,989,316.85 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
140,171,621.99 |
145,290,649.22 |
155,283,034.06 |
|
Selling Expenses |
40,417,342.42 |
34,146,197.19 |
1,911,324.01 |
|
Administrative Expenses |
19,212,823.88 |
20,048,947.96 |
12,943,993.70 |
|
Total Expenses |
199,801,788.29 |
199,485,794.37 |
170,138,351.77 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
38,465,563.61 |
52,788,830.80 |
45,850,965.08 |
|
Financial Costs |
[6,145,019.50] |
[6,576,788.78] |
[6,894,768.63] |
|
Profit / [Loss] before Income
Tax |
32,320,544.11 |
46,212,042.02 |
38,956,196.45 |
|
Income Tax |
[17,975.70] |
[74,470.10] |
[160,223.02] |
|
|
|
|
|
|
Net Profit / [Loss] |
32,302,568.41 |
46,137,571.92 |
38,795,973.43 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
3.84 |
1.20 |
1.41 |
|
QUICK RATIO |
TIMES |
0.37 |
0.78 |
1.26 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.05 |
1.82 |
1.57 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.09 |
0.91 |
0.84 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
87.31 |
105.20 |
25.72 |
|
INVENTORY TURNOVER |
TIMES |
4.18 |
3.47 |
14.19 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
38.75 |
113.13 |
175.84 |
|
RECEIVABLES TURNOVER |
TIMES |
9.42 |
3.23 |
2.08 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
10.39 |
16.84 |
10.74 |
|
CASH CONVERSION CYCLE |
DAYS |
115.66 |
201.49 |
190.82 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
58.84 |
57.65 |
72.16 |
|
SELLING & ADMINISTRATION |
% |
25.03 |
21.50 |
6.90 |
|
INTEREST |
% |
2.58 |
2.61 |
3.20 |
|
GROSS PROFIT MARGIN |
% |
41.18 |
42.45 |
28.21 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
16.15 |
20.95 |
21.31 |
|
NET PROFIT MARGIN |
% |
13.56 |
18.31 |
18.03 |
|
RETURN ON EQUITY |
% |
20.83 |
37.24 |
34.10 |
|
RETURN ON ASSET |
% |
14.81 |
16.60 |
15.08 |
|
EARNING PER SHARE |
BAHT |
4.97 |
7.10 |
5.97 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.29 |
0.55 |
0.56 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.41 |
1.24 |
1.26 |
|
TIME INTEREST EARNED |
TIMES |
6.26 |
8.03 |
6.65 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(5.48) |
17.11 |
|
|
OPERATING PROFIT |
% |
(27.13) |
15.13 |
|
|
NET PROFIT |
% |
(29.99) |
18.92 |
|
|
FIXED ASSETS |
% |
(43.71) |
0.98 |
|
|
TOTAL ASSETS |
% |
(21.50) |
8.02 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -5.48%. Turnover has decreased from THB
252,026,391.51 in 2010 to THB 238,207,432.90 in 2011. While net profit has
decreased from THB 46,137,571.92 in 2010 to THB 32,302,568.41 in 2011. And
total assets has decreased from THB 277,902,070.11 in 2010 to THB
218,149,795.38 in 2011.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
41.18 |
Impressive |
Industrial Average |
26.55 |
|
Net Profit Margin |
13.56 |
Impressive |
Industrial Average |
7.96 |
|
Return on Assets |
14.81 |
Impressive |
Industrial Average |
12.87 |
|
Return on Equity |
20.83 |
Impressive |
Industrial Average |
16.42 |
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 41.18%. 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 13.56% 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
14.81%, 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 20.83%, 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 :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
3.84 |
Impressive |
Industrial Average |
1.80 |
|
Quick Ratio |
0.37 |
|
|
|
|
Cash Conversion Cycle |
115.66 |
|
|
|
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 3.84 times in 2011, increased from 1.2 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 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 0.37 times in 2011,
decreased from 0.78 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 116 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.29 |
Impressive |
Industrial Average |
0.31 |
|
Debt to Equity Ratio |
0.41 |
Impressive |
Industrial Average |
0.43 |
|
Times Interest Earned |
6.26 |
Impressive |
Industrial Average |
- |
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 6.26 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 0.29 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 |
3.05 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.09 |
Acceptable |
Industrial Average |
1.62 |
|
Inventory Conversion Period |
87.31 |
|
|
|
|
Inventory Turnover |
4.18 |
Deteriorated |
Industrial Average |
8.93 |
|
Receivables Conversion Period |
38.75 |
|
|
|
|
Receivables Turnover |
9.42 |
Impressive |
Industrial Average |
7.19 |
|
Payables Conversion Period |
10.39 |
|
|
|
The company's Account Receivable Ratio is calculated as 9.42 and 3.23 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 105 days at the
end of 2010 to 87 days at the end of 2011. This represents a positive trend.
And Inventory turnover has increased from 3.47 times in year 2010 to 4.18 times
in year 2011.
The company's Total Asset Turnover is calculated as 1.09 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 Downtrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.54 |
|
UK Pound |
1 |
Rs.84.19 |
|
Euro |
1 |
Rs.71.11 |
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.