MIRA INFORM REPORT
|
Report Date : |
31.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
THAI HANSA WELDING ELECTRODES
CO., LTD. |
|
|
|
|
Registered Office : |
386/2
Moo 1, Soi
Bee-Thai, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
26.01.1972 |
|
|
|
|
Com. Reg. No.: |
0105515000641 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer exporter and
distributor of welding electrodes |
|
|
|
|
No. of Employees : |
120 |
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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
With a well-developed infrastructure, a free-enterprise
economy, generally pro-investment policies, and strong export industries,
Source
: CIA
Company name and address
THAI
HANSA WELDING ELECTRODES CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 386/2
MOO 1, SOI
BEE-THAI,
BANGPOOMAI, MUANG,
TELEPHONE : [66] 2323-0022,
2323-0605-8
FAX : [66] 2323-9832,
2323-0032
E-MAIL
ADDRESS : info@geminithai.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1972
REGISTRATION
NO. : 0105515000641 [Former: 65/2515]
TAX
ID NO. : 3101048490
CAPITAL REGISTERED : BHT. 50,000,000
CAPITAL PAID-UP : BHT
50,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCALYEAR CLOSING DAT
: DECEMBER 31
LEGAL
STATUS : PRIVATE
LIMITED COMPANY
EXECUTIVE
: MR.
UAYCHAI ABHINORASETH, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 120
LINES
OF BUSINESS : WELDING
ELECTRODES
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT
SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD WITH
MANAGEMENT
STANDARD : MANAGEMENT
WITH GOOD PERFORMANCE
HISTORY
The subject was
established on January
26, 1972 as
a private limited
company under the name
style THAI HANSA WELDING
ELECTRODES CO., LTD., by Abhinoraseth
family. The subject
received promotional privileges
from the Board of Investment,
Thailand to manufacture
welding electrode to
both local and
overseas markets. It
currently employs approximately
120 staff.
The subject’s registered address
is 386/2 Moo 1, Soi Bee-Thai, Sukhumvit
Rd., Bangpoomai, Muang,
Samutprakarn 10280, and
this is the
subject’s current operation
address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Uaychai Abhinoraseth |
|
Thai |
65 |
|
Mr. Apichart Abhinoraseth |
|
Thai |
55 |
|
Mr. Pairoj Abhinoraseth |
|
Thai |
74 |
|
Mr. |
|
Thai |
61 |
|
Mr. Prapin Abhinoraseth |
|
Thai |
52 |
|
Mr. Thawatchai Abhinoraseth |
|
Thai |
59 |
AUTHORIZED PERSON
Two of the
above directors can
jointly sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Uaychai Abhinoraseth is
the Managing Director.
He is Thai
nationality with the
age of 65
years old.
Mr. Apichart Abhinoraseth is
the General Manager
& Plant Manager.
He is Thai
nationality with the
age of 55 years old.
Mr. Pichapop Apinoraseth is
the Deputy General
Manager & Sales Manager.
He is Thai
nationality.
Mrs. Ratiros Sangthong is
the Export Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
of welding electrodes
as the followings:
Mild Steel
High Tensite Steel
Hard Facing Steel
Stainless Steel
Cast Iron, copper
alloy and nickel
alloy
Low Temperature Service
Steel
Heat Resistant Steel
Corrosion Resistant Steel
Welding Cable
etc.
MAJOR BRANDS
“GEMINI”, “NAKATA”
PRODUCTION
1,600 tons/month
IMPORT [COUNTRIES]
20% of raw
materials, such as
mica powder and
steel rod are imported
from Japan, Singapore, Taiwan,
Malaysia, Germany and
Republic of China,
while 80% is
purchased from local
suppliers.
MAJOR SUPPLIERS
|
Name |
Country |
|
|
|
|
Posco-Thainox Public Company
Limited |
Thailand |
|
Hansa Metallwerke AG.
|
Germany |
|
Wiremaker Co., Ltd. |
Thailand |
|
Gemini [Thailand] Co.,
Ltd. |
Thailand |
|
Menam Stainless Wire
Public Company Limited |
Thailand |
EXPORT [COUNTRIES]
80% of the
products is exported
to United States
of America, Germany,
Singapore,
United Kingdom, France,
Canada, Australia, Vietnam,
Hong Kong, Indonesia,
Brunei, Laos, Myanmar,
Malaysia, Philippines, Japan,
Republic of China,
Middle East, India,
Pakistan and etc.
SALES [LOCAL]
20% of the
products is sold
locally to manufacturers, wholesalers
and retailers.
MAJOR CUSTOMERS
Lertvilai & Sons
Co., Ltd. : Thailand
M. C. P. Brothers Co.,
Ltd. : Thailand
Selectrode Industries Inc. : U.S.A.
J. Habib International Ltd. : Pakistan
RELATED & AFFILIATED
COMPANIES
Lertvilai & Sons
Co., Ltd.
Business Type: Trading
company
Gemini [Thailand] Co.,
Ltd.
Business Type: Manufacturer
of welding electrodes
M. C. P. Brothers Co.,
Ltd.
Business Type :
Trading company
Thanyanoraseth Co., Ltd.
Business Type :
Manufacturer of welding
electrodes
Triangle Cables [Thailand]
Co., Ltd.
Business Type :
Manufacturer of flexible
power
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 on the
credits term of
30-60 days and
T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Road, Silom, Bangrak,
Bangkok]
The Siam Commercial
Bank Public Co.,
Ltd.
[Taladnoi Branch
: Taladnoi, Samphantawong, Bangkok]
EMPLOYMENT
The subject employs
approximately 120 office,
sales staff and
factory workers.
LOCATION DETAILS
The premise is
owned for operating
administrative office, factory
and warehouse at
the heading address.
Premise is located
in an industrial
area on 12,800
square meters.
COMMENT
The
subject is a
manufacturer, distributor and
exporter of welding electrodes.
Most of products
have been served to industrial sector. Since
the beginning of 2012
its business had
continued growing stronger
from refurbishing industries
and new expansion,
while its business
in 2013 seems
to slowdown from
the previous year
resulted by shrinking
domestic consumption and
slow expansion of
industrial sector.
FINANCIAL INFORMATION
The capital was
registered at Bht.
1,500,000 divided into
15,000 shares of
Bht. 100 each.
The capital was
increased later as
followings:
Bht. 9,000,000
on December 21,
1981
Bht. 26,000,000
on February 25,
1989
Bht. 50,000,000
on February 15,
1993
The latest registered
capital was increased
to Bht. 50,000,000 divided into 500,000
shares of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30,
2013]
|
NAME |
HOLDING |
% |
|
Mr. Kasemsit Abhinoraseth Nationality: Thai Address : 784
Charoenkrung Rd., Samphantawong, Bangkok |
99,983 |
20.00 |
|
Mr. Pairoj Abhinoraseth Nationality: Thai Address : 244
Moo 5, Taiban,
Muang, Samutprakarn |
75,000 |
15.00 |
|
Mr. Prapin Abhinoraseth Nationality: Thai Address : 788-790
Charoenkrung Rd.,
Samphantawong, Bangkok |
50,163 |
10.04 |
|
Mr. Sitthiboon Abhinoraseth Nationality: Thai Address : 22
Trok Sunthornpimol, Jarumang,
Rongmuang, Pathumwan, Bangkok |
37,500 |
7.50 |
|
Mr. Tan Abhinoraseth Nationality: Thai Address : 22
Trok Sunthornpimol, Jarumang,
Rongmuang, Pathumwan,
Bangkok |
37,500 |
7.50 |
|
Mr. Uaychai Abhinoraseth Nationality: Thai Address : 639/19
Ladprao Rd., Ladyao,
Bangkhen, Bangkok |
33,309 |
6.66 |
|
Mr. Apichart Abhinoraseth Nationality: Thai Address : 19
Moo 16, Lamphyaklang, Muaklek, Saraburi |
33,309 |
6.66 |
|
Mr. Thawatchai Abhinoraseth Nationality: Thai Address : 788-790
Charoenkrung Rd.,
Samphantawong, Bangkok |
33,309 |
6.66 |
|
Mr. Visit Abhinoraseth Nationality: Thai Address : 786
Charoenkrung Rd.,
Samphantawong, Bangkok |
33,309 |
6.66 |
|
Mr. Arak Abhinoraseth Nationality: Thai Address : 786
Charoenkrung Rd., Samphantawong, Bangkok |
33,309 |
6.66 |
|
Ms. Jarupha Abhinoraseth
Nationality: Thai Address : 1775/175
Soi Chula 34,
Wangmai,
Pathumwan, Bangkok |
33,309 |
6.66 |
Total Shareholders : 11
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
11 |
500,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
11 |
500,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Yongyuth Tangsirisa-nguan No.
2400
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
29,201,819.13 |
16,699,474.97 |
12,110,043.02 |
|
Trade Accounts & Other Receivable |
151,357,271.56 |
146,952,239.49 |
121,101,007.78 |
|
Inventories &
Packaging |
23,114,840.40 |
7,483,543.61 |
8,876,571.00 |
|
Other Current Assets
|
1,688,091.87 |
1,966,536.20 |
2,180,540.97 |
|
Total Current Assets
|
205,362,022.96 |
173,101,794.27 |
144,268,162.77 |
|
|
|
|
|
|
Fixed Assets |
38,062,418.08 |
30,247,921.71 |
28,400,376.32 |
|
Intangible Assets |
769,315.06 |
1,169,315.02 |
1,569,315.04 |
|
Other Non-current Assets |
2,064,043.91 |
2,188,043.91 |
2,044,043.91 |
|
Total Assets |
246,257,800.01 |
206,707,074.91 |
176,281,898.04 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft &
Short Term Loan from Financial Institution |
15,000,000.00 |
18,579,995.32 |
27,724,329.74 |
|
Trade Accounts & Other Payable |
76,791,156.15 |
50,008,177.52 |
31,732,280.18 |
|
Current Portion of Lease
Contract Liabilities |
2,089,359.29 |
1,370,272.53 |
955,820.22 |
|
Accrued Income Tax |
1,847,690.06 |
5,801,499.48 |
1,494,225.00 |
|
Other Current Liabilities |
330,722.84 |
324,449.62 |
276,322.27 |
|
Total Current Liabilities |
96,058,928.34 |
76,084,394.47 |
62,182,977.41 |
|
Lease Contract Liabilities, Net
of Current Portion |
3,474,944.13 |
2,299,173.98 |
1,193,298.61 |
|
Employee Benefit Obligation |
6,863,060.23 |
5,868,577.21 |
- |
|
Total Liabilities |
106,396,932.70 |
84,252,145.66 |
63,376,276.02 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 500,000 shares |
50,000,000.00 |
50,000,000.00 |
50,000,000.00 |
|
Capital Paid |
50,000,000.00 |
50,000,000.00 |
50,000,000.00 |
|
Statutory Reserve |
5,000,000.00 |
5,000,000.00 |
5,000,000.00 |
|
Retained Earning -
Unappropriated |
84,860,867.31 |
67,454,929.25 |
57,905,622.02 |
|
Total Shareholders' Equity |
139,860,867.31 |
122,454,929.25 |
112,905,622.02 |
|
Total Liabilities &
Shareholders' Equity |
246,257,800.04 |
206,707,074.91 |
176,281,898.04 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
492,372,070.08 |
407,518,829.49 |
385,287,529.82 |
|
Services Income |
4,893,914.53 |
7,622,750.00 |
4,322,662.50 |
|
Gain on Disposal
of Assets |
280,373.83 |
- |
186,914.89 |
|
Gain on Exchange
Rate |
285,676.65 |
685,715.79 |
2,653,650.16 |
|
Other Income |
2,141,179.62 |
1,548,156.20 |
1,712,692.54 |
|
Total Revenues |
499,973,214.71 |
417,375,451.48 |
394,163,449.91 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
425,557,365.11 |
347,704,590.49 |
343,099,596.99 |
|
Selling Expenses |
28,008,264.53 |
24,160,758.13 |
20,785,337.86 |
|
Administrative Expenses |
22,303,426.62 |
25,726,094.44 |
19,362,291.94 |
|
Total Expenses |
475,869,056.26 |
397,591,443.06 |
383,247,226.79 |
|
Profit Before Financial
Costs & Income Tax |
24,104,158.45 |
19,784,008.42 |
10,916,223.12 |
|
Financial Costs |
[891,564.01] |
[1,316,018.94] |
[1,261,729.62] |
|
Profit Before Income Tax |
23,212,594.44 |
18,467,989.48 |
9,654,493.50 |
|
Income Tax |
[5,806,656.38] |
[7,468,682.25] |
[3,236,312.10] |
|
Net Profit / [Loss] |
17,405,938.06 |
10,999,307.23 |
6,418,181.40 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.14 |
2.28 |
2.32 |
|
QUICK RATIO |
TIMES |
1.88 |
2.15 |
2.14 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
13.06 |
13.72 |
13.72 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.02 |
2.01 |
2.21 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
19.83 |
7.86 |
9.44 |
|
INVENTORY TURNOVER |
TIMES |
18.41 |
46.46 |
38.65 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
111.10 |
129.20 |
113.45 |
|
RECEIVABLES TURNOVER |
TIMES |
3.29 |
2.83 |
3.22 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
65.86 |
52.50 |
33.76 |
|
CASH CONVERSION CYCLE |
DAYS |
65.06 |
84.56 |
89.14 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
85.58 |
83.76 |
88.06 |
|
SELLING & ADMINISTRATION |
% |
10.12 |
12.02 |
10.30 |
|
INTEREST |
% |
0.18 |
0.32 |
0.32 |
|
GROSS PROFIT MARGIN |
% |
14.96 |
16.78 |
13.11 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.85 |
4.77 |
2.80 |
|
NET PROFIT MARGIN |
% |
3.50 |
2.65 |
1.65 |
|
RETURN ON EQUITY |
% |
12.45 |
8.98 |
5.68 |
|
RETURN ON ASSET |
% |
7.07 |
5.32 |
3.64 |
|
EARNING PER SHARE |
BAHT |
34.81 |
22.00 |
12.84 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.43 |
0.41 |
0.36 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.76 |
0.69 |
0.56 |
|
TIME INTEREST EARNED |
TIMES |
27.04 |
15.03 |
8.65 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
19.78 |
6.55 |
|
|
OPERATING PROFIT |
% |
21.84 |
81.23 |
|
|
NET PROFIT |
% |
58.25 |
71.38 |
|
|
FIXED ASSETS |
% |
25.83 |
6.51 |
|
|
TOTAL ASSETS |
% |
19.13 |
17.26 |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 19.78%.
Turnover has increased from THB 415,141,579.49 in 2011 to THB 497,265,984.61 in
2012. While net profit has increased from THB 10,999,307.23 in 2011 to THB
17,405,938.06 in 2012. And total assets has increased from THB 206,707,074.91
in 2011 to THB 246,257,800.01 in 2012.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
14.96 |
Deteriorated |
Industrial
Average |
44.37 |
|
Net Profit Margin |
3.50 |
Impressive |
Industrial
Average |
1.19 |
|
Return on Assets |
7.07 |
Impressive |
Industrial
Average |
1.42 |
|
Return on Equity |
12.45 |
Impressive |
Industrial
Average |
3.45 |
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 14.96%. When compared with
the industry average, the ratio of the company was lower. This indicated that
company may have problems with control over its costs.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. Net Profit Margin ratio is 3.5%,
higher figure when compared with those of its average competitors in the same
industry, indicated that business was an efficient operators 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
7.07%, 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 12.45%, 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 :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
2.14 |
Impressive |
Industrial
Average |
1.21 |
|
Quick Ratio |
1.88 |
|
|
|
|
Cash Conversion Cycle |
65.06 |
|
|
|
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 2.14 times in 2012, decrease from 2.28 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 1.88 times in 2012,
decrease from 2.15 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 66 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.43 |
Impressive |
Industrial
Average |
0.61 |
|
Debt to Equity Ratio |
0.76 |
Impressive |
Industrial
Average |
1.53 |
|
Times Interest Earned |
27.04 |
Impressive |
Industrial
Average |
(1.07) |
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 27.04 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 0.43 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 Uptrend
Times Interest Earned Downtrend
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
13.06 |
Impressive |
Industrial
Average |
(0.58) |
|
Total Assets Turnover |
2.02 |
Impressive |
Industrial
Average |
1.01 |
|
Inventory Conversion Period |
19.83 |
|
|
|
|
Inventory Turnover |
18.41 |
Impressive |
Industrial
Average |
2.39 |
|
Receivables Conversion Period |
111.10 |
|
|
|
|
Receivables Turnover |
3.29 |
Impressive |
Industrial
Average |
0.60 |
|
Payables Conversion Period |
65.86 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.29 and 2.83 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
increased from 2011. This would suggest the company had good performance in the
management of its debt collections.
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has increased from 8 days at the end
of 2011 to 20 days at the end of 2012. This represents a negative trend. And
Inventory turnover has decreased from 46.46 times in year 2011 to 18.41 times
in year 2012.
The company's Total Asset Turnover is calculated as 2.02 times and 2.01
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.61.49 |
|
|
1 |
Rs.98.71 |
|
Euro |
1 |
Rs.84.49 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.