MIRA INFORM REPORT
|
Report Date : |
10.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
SIAM
MODIFIED STARCH CO., LTD. |
|
|
|
|
Registered Office : |
19th Floor, Sathornthani Building, 90/54-57 North Sathorn Road, Silom, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
11.07.1985 |
|
|
|
|
Com. Reg. No.: |
0105528024322 [Former : 2431/2528] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
manufacturer,
distributor and exporter of
modified tapioca starch,
in various applications for
paper, adhesive, textile,
and food industries,
as well as
special sectors, such
as surgical gloves. |
|
|
|
|
No. of Employees : |
380 |
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
SIAM MODIFIED STARCH
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 19th FLOOR,
SATHORNTHANI BUILDING,
90/54-57 NORTH
SATHORN ROAD,
SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2233-3990-9,
2267-5623-32
FAX :
[66] 2236-6050,
2636-6601
E-MAIL
ADDRESS : smsmkm@siammodifiedstarch.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1985
REGISTRATION
NO. : 0105528024322 [Former : 2431/2528]
TAX
ID NO. : 3101350326
CAPITAL REGISTERED : BHT. 170,000,000
CAPITAL PAID-UP : BHT.
170,000,000
SHAREHOLDER’S PROPORTION : THAI : 77.39%
JAPANESE :
22.61%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
WERAWAT LERTWANAWATANA, THAI
MANAGING DIRECTOR
& FACTORY MANAGER
NO.
OF STAFF : 380
LINES
OF BUSINESS : MODIFIED STARCH
MANUFACTURER, DISTRIBUTOR & 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 was
established on July
11, 1985 as
a private limited
company under the name
style SIAM MODIFIED
STARCH CO., LTD.,
by Thai and Japanese
groups, with the
business objective to
manufacture modified tapioca
starch to both
domestic and international
markets. It currently
employs 380 staff.
The
subject’s registered address
is 19th Floor, Sathornthani
Building, 90/54-57 North
Sathorn Rd., Silom,
Bangrak, Bangkok 10500,
and this is
the subject’s current operation
address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sukit Wanglee |
[x] Chairman |
Thai |
83 |
|
Mr. Natachai Wanglee |
|
Thai |
38 |
|
Mr. Surachit Wanglee |
|
Thai |
74 |
|
Mr. Supoj Wanglee |
[x] |
Thai |
73 |
|
Mr. Petch Wanglee |
[x] |
Thai |
49 |
|
Mr. Ejiro Matsutani |
|
Japanese |
87 |
|
Mrs. Haruyo Matsutani |
|
Japanese |
60 |
|
Mrs. Puangrat Jirawuthitanan |
|
Thai |
57 |
|
Mr. Thamrongrat Bisalbutra |
|
Thai |
46 |
|
Mr. Ryo Matsutani |
|
Japanese |
30 |
|
Mr. Yoshinobu Matsutani |
|
Japanese |
66 |
|
Mr. Werawat Lertwanawatana |
[x] |
Thai |
61 |
|
Mr. Sumate Srivarakiat |
[x] |
Thai |
59 |
|
Mr. Danaithanit Bisalbutra |
[x] |
Thai |
56 |
|
Mr. Hiroshi Arai |
|
Japanese |
60 |
Note:
Mr. Haruyo Matsutani changed
his surname from “Kikagawa” on
July 6, 2011.
Mr. Yoshinobu Matsutani changed
his surname from “Kikagawa” on
July 6, 2011.
AUTHORIZED PERSON
Two of the
mentioned directors [x]
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Werawat Lertwanawatana is
the Managing Director & Factory
Manager.
He is Thai
nationality with the
age of 61
years old.
Mrs. Puangrat Jirawuthitanan is the
G.M. and Financial
Manager.
She is Thai
nationality with the
age of 57
years old.
Mr. Sumate Srivarakiat
is the Production
Manager.
He is Thai
nationality with the
age of 59
years old.
Mr. Suraphon Somporn is
the Human Resource
Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer, distributor
and exporter of
modified tapioca starch,
in various applications
for paper, adhesive,
textile, and food
industries, as well
as special sectors,
such as surgical
gloves.
PRODUCTION CAPACITY
25,000 tons per
month
MAJOR BRANDS
“S.M.S.”, “SIAM MODIFIED
STARCH”
PURCHASE
Most of raw
materials such as
tapioca and chemicals
are purchased from
local suppliers.
IMPORT [COUNTRIES]
Some of chemicals
and spare parts
are imported from
Germany, Spain, Netherlands,
U.S.A., Japan, Republic
of China, and
Italy.
MAJOR SUPPLIERS
Siam Quality
Starch Co., Ltd. : Thailand
Matsutani Chemical Industry
Co., Ltd. : Japan
SALES [LOCAL]
20% of its
products is sold locally
to manufacturers and
wholesalers.
EXPORT [COUNTRY]
80% of the
products is exported
to Taiwan, Japan,
Indonesia, Australia, U.S.A., Republic of
China, Hong Kong, New Zealand,
Netherlands, France, Malaysia,
Singapore, India, Philippines,
Korea, Laos and
Vietnam.
SUBSIDIARIES & AFFILIATED
COMPANY
Siam Quality Starch Co., Ltd.
Business Type: Manufacturer
of tapioca flour
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
L/C at sight
or D/A on
the credits term
of 30-60 days.
Exports are against
L/C at sight.
BANKING
Kasikornbank Public Co.,
Ltd.
[Head Office
: 1 Rajburana Road,
Rajburana, Bangkok]
Standard Chartered Nakornthon
Bank Public Co.,
Ltd.
[Head Office
: 90 North Sathorn
Road, Silom, Bangrak,
Bangkok]
The Siam Commercial Bank
Public Co., Ltd.
[Ladlumkaew Branch,
Pathumthani]
EMPLOYMENT
The subject currently
employs approximately 380
staff. [office staff
and factory workers]
LOCATION DETAILS
The premise is
rented for operating
office at the heading
address. Premise is
located in a
prime commercial area.
The factory is
located at 38/6
Moo 11, Pathumthani-Ladlumkaew
Road, T.
Kubangluang, A. Ladlumkaew,
Pathumthani 12140, Thailand.
Tel : [66]
598-1123-9 Fax :
[66] 598-1130, 2598-3130.
COMMENT
Demand for Thai
tapioca products in
world market has
steadily grown which
90% of Thailand’s
tapioca output is
shipped to The
European union to produce
animal feed. Only a
tiny portion remains
for use by local
industries or for
direct human consumption.
The subject’s sales
in 2012 was
slightly dropped comparing
to the same
period of the
previous year, but it
managed to obtain an
increase in net
profit at the
end of year.
The subject reported
an expansion of
its export market
in the third
quarter of 2013,
and expects to
continue at the
end of year
as well. Generally,
its business is
growing considerably.
FINANCIAL INFORMATION
The capital was
registered at Bht.
50,000,000 divided into 500,000
shares of Bht. 100
each.
The capital was
increased later as
followings :
Bht. 60,000,000
on January 7,
1986
Bht. 120,000,000
on July 8,
1988
Bht. 170,000,000
on July 13,
1989
The latest registered
capital was increased
to Bht. 170,000,000 divided into
1,700,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED
WERE : [as at
April 26, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Poon Phol Co.,
Ltd. Nationality: Thai Address : 90/54-57
North Sathorn Rd.,
Silom,
Bangrak, Bangkok |
841,051 |
49.47 |
|
P P M Holding Co.,
Ltd. Nationality: Thai Address : 90/54-57
North Sathorn Rd.,
Silom,
Bangrak, Bangkok |
386,939 |
22.76 |
|
Matsutani Europe B.V. Nationality: Japanese Address : Netherlands |
384,409 |
22.61 |
|
Poonpipat Co., Ltd. Nationality: Thai Address : 90/54-57
North Sathorn Rd.,
Silom,
Bangrak, Bangkok |
87,300 |
5.13 |
|
Pipatanasin Co., Ltd. Nationality: Thai Address : 90/54-57
North Sathorn Rd.,
Silom,
Bangrak, Bangkok |
200 |
0.02 |
|
Sitthinan Co., Ltd. Nationality: Thai Address : 90/54-57
North Sathorn Rd.,
Silom,
Bangrak, Bangkok |
100 |
0.01 |
|
Mr. Sukit Wanglee Nationality: Thai Address : 6/1
Nanglinchee Rd., Thungmahamek, Sathorn, Bangkok |
1 |
- |
Total Shareholders : 7
Share Structure
[as at April
26, 2013]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
1,315,591 |
77.39 |
|
Foreign-Japanese |
1 |
384,409 |
22.61 |
|
Total |
7 |
1,700,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Narong Pantawong
No. 3315
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
5,773,892 |
38,881,784 |
3,771,528 |
|
Trade Accounts & Other Receivable |
144,277,044 |
130,380,940 |
157,184,666 |
|
Inventories |
279,514,489 |
262,421,770 |
300,265,101 |
|
Tax Refundable |
4,167,862 |
4,614,505 |
13,385,335 |
|
Other Current Assets
|
1,672,501 |
3,827,461 |
5,116,652 |
|
|
|
|
|
|
Total Current Assets
|
435,405,788 |
440,126,460 |
479,723,282 |
|
Long-term Investment
|
50,934,206 |
50,934,206 |
50,934,206 |
|
Fixed Assets |
436,287,849 |
338,344,220 |
381,824,986 |
|
Intangible Assets |
22,790,765 |
14,384,289 |
17,375,646 |
|
Advance
Payment for Machinery |
- |
25,215,000 |
- |
|
Deposit |
3,444,414 |
3,444,414 |
3,573,463 |
|
Total Assets |
948,863,022 |
872,448,589 |
933,431,583 |
LIABILITIES & SHAREHOLDERS’
EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
60,774,932 |
23,345,418 |
33,337,029 |
|
Trade Accounts & Other Payable
|
125,459,775 |
101,637,322 |
117,646,057 |
|
Accrued Income Tax |
3,715,116 |
7,218,265 |
15,107,137 |
|
Other Current Liabilities |
12,381,932 |
8,361,344 |
22,660,471 |
|
|
|
|
|
|
Total Current Liabilities |
202,331,755 |
140,562,349 |
188,750,694 |
|
|
|
|
|
|
Reserve for Employee Benefits
|
11,352,683 |
9,488,880 |
- |
|
Total Liabilities |
213,684,438 |
150,051,229 |
188,750,694 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,700,000 shares |
170,000,000 |
170,000,000 |
170,000,000 |
|
|
|
|
|
|
Capital Paid |
170,000,000 |
170,000,000 |
170,000,000 |
|
Retained Earnings: Appropriated for Statutory Reserve |
17,000,000 |
17,000,000 |
17,000,000 |
|
Unappropriated |
548,178,584 |
535,397,360 |
557,680,889 |
|
Total Shareholders' Equity |
735,178,584 |
722,397,360 |
744,680,889 |
|
Total Liabilities & Shareholders' Equity |
948,863,022 |
872,448,589 |
933,431,583 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
1,113,177,927 |
1,217,743,030 |
1,215,572,707 |
|
Interest Income |
19,174 |
5,224,362 |
14,467,281 |
|
Gain on Exchange Rate |
- |
3,709,276 |
14,305,904 |
|
Other Income |
20,643,362 |
5,382,768 |
7,361,136 |
|
Total Revenues |
1,133,840,463 |
1,232,059,436 |
1,251,707,028 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
830,605,734 |
945,361,551 |
939,626,807 |
|
Selling Expenses |
139,818,928 |
128,798,300 |
137,377,614 |
|
Administrative Expenses |
100,133,246 |
90,879,219 |
89,233,059 |
|
Other Expenses |
3,824,136 |
3,597,632 |
[2,729,882] |
|
Total Expenses |
1,074,382,044 |
1,168,636,702 |
1,163,507,598 |
|
|
|
|
|
|
Profit before Financial Cost & Income
Tax |
59,458,419 |
63,422,734 |
88,199,430 |
|
Financial Costs |
[1,101,769] |
[6,372,253] |
[12,199,265] |
|
Profit / [Loss] before Income Tax |
58,356,650 |
57,050,481 |
76,000,165 |
|
Income Tax |
[11,575,426] |
[19,834,010] |
[19,901,590] |
|
|
|
|
|
|
Net Profit / [Loss] |
46,781,224 |
37,216,471 |
56,098,575 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.15 |
3.13 |
2.54 |
|
QUICK RATIO |
TIMES |
0.76 |
1.24 |
0.92 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.55 |
3.60 |
3.18 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.17 |
1.40 |
1.30 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
122.83 |
101.32 |
116.64 |
|
INVENTORY TURNOVER |
TIMES |
2.97 |
3.60 |
3.13 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
47.31 |
39.08 |
47.20 |
|
RECEIVABLES TURNOVER |
TIMES |
7.72 |
9.34 |
7.73 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
55.13 |
39.24 |
45.70 |
|
CASH CONVERSION CYCLE |
DAYS |
115.00 |
101.16 |
118.14 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
74.62 |
77.63 |
77.30 |
|
SELLING & ADMINISTRATION |
% |
21.56 |
18.04 |
18.64 |
|
INTEREST |
% |
0.10 |
0.52 |
1.00 |
|
GROSS PROFIT MARGIN |
% |
27.24 |
23.54 |
25.67 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.34 |
5.21 |
7.26 |
|
NET PROFIT MARGIN |
% |
4.20 |
3.06 |
4.61 |
|
RETURN ON EQUITY |
% |
6.36 |
5.15 |
7.53 |
|
RETURN ON ASSET |
% |
4.93 |
4.27 |
6.01 |
|
EARNING PER SHARE |
BAHT |
27.52 |
21.89 |
33.00 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.23 |
0.17 |
0.20 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.29 |
0.21 |
0.25 |
|
TIME INTEREST EARNED |
TIMES |
53.97 |
9.95 |
7.23 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(8.59) |
0.18 |
|
|
OPERATING PROFIT |
% |
(6.25) |
(28.09) |
|
|
NET PROFIT |
% |
25.70 |
(33.66) |
|
|
FIXED ASSETS |
% |
28.95 |
(11.39) |
|
|
TOTAL ASSETS |
% |
8.76 |
(6.53) |
|
ANNUAL GROWTH : SATISFACTORY
An annual sales growth is -8.59%. Turnover has decreased from THB
1,217,743,030.00 in 2011 to THB 1,113,177,927.00 in 2012. While net profit has
increased from THB 37,216,471.00 in 2011 to THB 46,781,224.00 in 2012. And
total assets has increased from THB 872,448,589.00 in 2011 to THB
948,863,022.00 in 2012.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
27.24 |
Impressive |
Industrial
Average |
14.97 |
|
Net Profit Margin |
4.20 |
Deteriorated |
Industrial
Average |
14.55 |
|
Return on Assets |
4.93 |
Deteriorated |
Industrial
Average |
33.41 |
|
Return on Equity |
6.36 |
Deteriorated |
Industrial
Average |
106.22 |
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
27.24%. 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 4.2%. 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 4.93%.
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 6.36%.
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 |
2.15 |
Impressive |
Industrial
Average |
1.12 |
|
Quick Ratio |
0.76 |
|
|
|
|
Cash Conversion Cycle |
115.00 |
|
|
|
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 2.15 times in 2012, decrease from 3.13 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 0.76 times in 2012,
decrease from 1.24 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 |
0.23 |
Impressive |
Industrial
Average |
0.56 |
|
Debt to Equity Ratio |
0.29 |
Impressive |
Industrial
Average |
1.24 |
|
Times Interest Earned |
53.97 |
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 53.97 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 0.23 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 Downtrend
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.55 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.17 |
Acceptable |
Industrial
Average |
2.30 |
|
Inventory Conversion Period |
122.83 |
|
|
|
|
Inventory Turnover |
2.97 |
Deteriorated |
Industrial
Average |
7.59 |
|
Receivables Conversion Period |
47.31 |
|
|
|
|
Receivables Turnover |
7.72 |
Impressive |
Industrial
Average |
3.34 |
|
Payables Conversion Period |
55.13 |
|
|
|
The company's Account Receivable Ratio is calculated as 7.72 and 9.34 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 101 days at the
end of 2011 to 123 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 3.6 times in year 2011 to 2.97 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.17 times and 1.4
times in 2012 and 2011 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Uptrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.92 |
|
UK Pound |
1 |
Rs.99.45 |
|
Euro |
1 |
Rs.83.92 |
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.