MIRA INFORM REPORT
|
Report Date : |
25.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
ALVA ALUMINIUM LIMITED |
|
|
|
|
Registered Office : |
4th Floor, Cathay House Building, 8/17-18 North Sathorn Road, Silom, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
06.10.2006 |
|
|
|
|
Com. Reg. No.: |
0105549120274 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, distributor & exporter
aluminum alloy ingots. |
|
|
|
|
No. of Employees : |
95 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow |
|
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 crisis 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 and address
ALVA ALUMINIUM LIMITED
SUMMARY
BUSINESS
ADDRESS : 4th FLOOR,
CATHAY HOUSE BUILDING,
8/17-18 NORTH
SATHORN ROAD,
SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2696-8787,
2696-8795
FAX :
[66] 2237-2604
E-MAIL
ADDRESS : drkk@alvathai.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2006
REGISTRATION
NO. : 0105549120274
TAX
ID NO. : 3032440288
CAPITAL REGISTERED : BHT. 341,000,000
CAPITAL PAID-UP : BHT.
341,000,000
SHAREHOLDER’S PROPORTION : THAI :
86.70%
INDIAN : 13.30%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. CHUSANA VIRAPHANDU,
THAI
CHIEF EXECUTIVE
OFFICER
NO.
OF STAFF : 95
LINES
OF BUSINESS : ALUMINUM ALLOY
INGOTS
MANUFACTURER, DISTRIBUTOR
& EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
LOW PERFORMANCE
HISTORY
The
subject was established
on October 6,
2006 as a
private limited company under
the name style
ALVA ALUMINIUM LIMITED
by Thai and
Indian groups, with
the business objective to manufacture
and distribute aluminum
alloy ingots, with
BOI promoted, to both
domestic and international
markets. It currently
employs 95 staff.
The
major shareholders are Globex
Corporation Ltd. and G.
Premjee Trading Pte. Ltd., which
are member of GP
Group, Thailand and
Kliss Trading Pvt.
Ltd., the Indian
company.
The
subject’s registered address is 4th
Flr., Cathay House Bldg.,
8/17-18 North Sathorn Rd.,
Silom, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms. Nishita Shah |
[x] |
Thai |
33 |
|
Mr. Kirit Shah |
|
Thai |
60 |
|
Mr. Ischarn Shah |
|
Thai |
25 |
|
Mr. Vadakemadathil
Narayana Lyer Krishnarmoorthi |
|
Indian |
58 |
|
Mr. Shiraz Erach Poonevala |
|
Indian |
48 |
|
Mr. Chusana Viraphandu |
|
Thai |
51 |
AUTHORIZED PERSON
Only the mentioned
director [x] can sign or
two of the
rest directors can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Chusana Viraphandu is
the Chief Executive
Officer.
He is Thai nationality with
the age of 51
years old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing, exporting
and distributing aluminum
alloy ingots, supply
to aluminum production
industry.
PRODUCTION CAPACITY
35,000-40,000 tons per
day
PURCHASE
Raw materials mainly aluminum scrap and chemicals are purchased from
both domestic and
overseas suppliers in
Republic of China,
Taiwan, India and
Japan.
EXPORT
90%
of the products
is exported to
India, Germany, Hong
Kong, Republic of
China, Indonesia and
Singapore.
SALES [LOCAL]
10% of the
products is sold
locally by wholesale
and retail to
manufacturers and
end-users.
SUBSIDIARY AND AFFILIATED
COMPANY
The subject is not found
to have any
subsidiary or affiliated
company here in
Thailand.
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 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 employs 95
staff, comprising 65
permanent staff and
30 temporary workers.
LOCATION DETAILS
The
premise is owned
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Factory
and warehouse are
located at 300/17
Moo 1, Eastern
Seaboard Industrial Estate,
T. Tasith, A. Pluakdaeng, Rayong
21140.
Tel.
: [66] 38
656-309-11,
Fax :
[66] 38 656-419.
COMMENT
Subject
was formed in
2006 as a
manufacture of aluminum
alloy ingot. Its
products are for
industrial sector. There are
many industries which
has strong demand
of aluminum. Since
production has been started
in 2008, the
subject’s business has rapidly
grown and expanding steadily.
Despite
its business had been
slowing down in 2012,
it is also
optimistic for a
strong growth in
long term prospect.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 1,000,000
divided into 10,000
shares of Bht. 100
each.
The
capital was increased
later as follows:
Bht. 181,000,000
on March
9, 2007
Bht. 341,000,000
on January
11, 2010
The
latest registered capital
was increased to
Bht. 341,000,000 divided into
3,410,000 shares of
Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at April 30,
2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Globex Corporation Ltd. Nationality: Thai Address : 6th Floor,
Cathay House Bldg., 8/25 North
Sathorn Rd., Silom,
Bangrak, Bangkok |
1,600,000 |
46.92 |
|
G. Premjee Trading Pte.
Ltd. Nationality: Thai Address : 6th Floor,
Cathay House Bldg., 8/24 North
Sathorn Rd., Silom,
Bangrak, Bangkok |
1,357,500 |
39.79 |
|
Kliss Trading Pvt.
Ltd. Nationality: Indian Address : India |
280,544 |
8.23 |
|
Mr. Chaiyam Narayan Moorthi Nationality: Indian Address : 4th Floor, Cathay House Bldg., 8/17-18
North Sathorn Rd.,
Silom, Bangrak, Bangkok |
135,750 |
3.98 |
|
Mr. Rames Chandra Shaboo Nationality: Indian Address : 4th Floor, Cathay House Bldg., 8/17-18
North Sathorn Rd.,
Silom,
Bangrak, Bangkok |
18,101 |
0.54 |
|
Mr. Ajay Kumar Batt Nationality: Indian Address : 168
Sukhumvit 23 Rd.,
Klongtoeynua,
Wattana, Bangkok |
18,100 |
0.54 |
|
Mr. Nirand Sinthupakorn Nationality: Thai Address : 2027/91
Charoenkrung Rd., Phrayakrai,
Bangkorlaem, Bangkok |
1 |
- |
|
Mr. Shirit Sharma Nationality: Indian Address : 6th Floor,
Cathay House Bldg., 8/23 North
Sathorn Rd., Silom,
Bangrak, Bangkok |
1 |
- |
|
Mr. Sasiporn Suwanaka Nationality: Thai Address : 9
Moo 4, Samrong,
Phrapradaeng,
Samutprakarn |
1 |
- |
|
Ms. Supatra Kulnarunartvanit Nationality: Thai Address : 2027/91
Charoenkrung Rd., Phrayakrai,
Bangkorlaem, Bangkok |
1 |
- |
|
Mr. Monthon Chaempathom Nationality: Thai Address : 87
Ramkhamhaeng 48 Rd.,
Huamark,
Bangkapi, Bangkok |
1 |
- |
Total Shareholders : 11
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
2,957,507 |
86.70% |
|
Foreign-Indian |
5 |
452,496 |
13.30% |
|
Total |
11 |
3,410,000 |
100% |
NAME OF AUDITOR
& CERTIFIED PUBLIC ACCOUNTANT NO. :
Pol. Maj. Chawalit Singcharoen
No. 0118
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 |
167,893.10 |
537,679.29 |
317,773.18 |
|
Short-term investments-fixed
deposit |
9,210,205.53 |
9,010,326.49 |
10,239.43 |
|
Trade Accounts & Other Receivable |
90,397,505.59 |
274,919,817.54 |
449,798,396.40 |
|
Inventories |
257,947,109.48 |
144,714,159.21 |
89,703,465.44 |
|
Other Deposits |
23,117,627.13 |
17,435,526.33 |
- |
|
Advance Payment |
20,017,947.73 |
21,121,407.06 |
- |
|
Revenue Department Receivable |
- |
- |
7,608,640.90 |
|
Other Current Assets |
- |
- |
24,050,600.67 |
|
|
|
|
|
|
Total Current Assets
|
400,858,288.56 |
467,738,915.92 |
571,489,116.02 |
|
Property, plant and
Equipment |
293,688,301.10 |
337,098,133.14 |
368,791,277.28 |
|
Intangible Asserts |
792,625.90 |
1,446,537.64 |
2,102,867.54 |
|
Deposits |
541,896.07 |
1,050,517.33 |
1,015,517.33 |
|
Other Non-current Assets |
22,242,765.97 |
26,729,208.37 |
31,214,771.23 |
|
Total Assets |
718,123,877.60 |
834,063,312.40 |
974,613,549.40 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial
Institutions |
395,450,465.51 |
550,199,403.33 |
708,145,101.17 |
|
Trade Accounts & Other
Payable |
220,091,139.87 |
117,511,555.21 |
57,141,301.74 |
|
Short-term Loan from Related
Parties |
350,154,129.70 |
347,154,129.70 |
236,654,129.70 |
|
Current Portion of Long-term Loans from Financial
Institutions |
54,000,000.00 |
54,000,000.00 |
54,000,000.00 |
|
Current Portion
of Obligation under Hire Purchase |
- |
47,863.01 |
800,968.50 |
|
Other Accounts Payable |
- |
- |
9,511,953.06 |
|
Other Current Liabilities |
- |
- |
26,849,048.25 |
|
|
|
|
|
|
Total Current Liabilities |
1,019,695,735.08 |
1,068,912,951.25 |
1,093,102,502.42 |
|
Long-term Loan from Financial Institution, Net of Current
Portion |
27,499,400.00 |
81,499,400.00 |
135,499,400.00 |
|
Obligation under Financial
Lease, Net |
- |
- |
47,862.98 |
|
Total Liabilities |
1,047,195,135.08 |
1,150,412,351.25 |
1,228,649,765.40 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 3,410,000 shares |
341,000,000.00 |
341,000,000.00 |
341,000,000.00 |
|
|
|
|
|
|
Capital Paid |
341,000,000.00 |
341,000,000.00 |
341,000,000.00 |
|
Retained Earning [Deficit] |
[670,071,257.48] |
[657,349,038.85] |
[595,036,216.00] |
|
Total Shareholders' Equity |
[329,071,257.48] |
[316,349,038.85] |
[254,036,216.00] |
|
Total Liabilities &
Shareholders' Equity |
718,123,877.60 |
834,063,312.40 |
974,613,549.40 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
1,230,574,698.33 |
1,735,871,196.07 |
1,742,487,503.88 |
|
Other Income |
75,680,178.90 |
62,914,006.85 |
57,058,279.65 |
|
Total Revenues |
1,306,254,877.23 |
1,798,785,202.92 |
1,799,545,783.53 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,189,783,549.60 |
1,723,277,317.22 |
1,782,281,026.13 |
|
Selling Expenses |
19,248,752.78 |
31,904,529.89 |
41,738,652.84 |
|
Administrative Expenses |
70,419,477.17 |
64,287,449.56 |
31,251,897.87 |
|
Total Expenses |
1,279,451,779.55 |
1,819,469,296.67 |
1,855,271,576.84 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
26,803,097.68 |
[20,684,093.75] |
[55,725,793.31] |
|
Financial Costs |
[39,525,316.31] |
[41,628,729.10] |
[35,241,867.16] |
|
|
|
|
|
|
Net Profit / [Loss] |
[12,722,218.63] |
[62,312,822.85] |
[90,967,660.47] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.39 |
0.44 |
0.52 |
|
QUICK RATIO |
TIMES |
0.10 |
0.27 |
0.41 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.19 |
5.15 |
4.72 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.71 |
2.08 |
1.79 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
79.13 |
30.65 |
18.37 |
|
INVENTORY TURNOVER |
TIMES |
4.61 |
11.91 |
19.87 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
26.81 |
57.81 |
94.22 |
|
RECEIVABLES TURNOVER |
TIMES |
13.61 |
6.31 |
3.87 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
67.52 |
24.89 |
11.70 |
|
CASH CONVERSION CYCLE |
DAYS |
38.43 |
63.57 |
100.89 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
96.69 |
99.27 |
102.28 |
|
SELLING & ADMINISTRATION |
% |
7.29 |
5.54 |
4.19 |
|
INTEREST |
% |
3.21 |
2.40 |
2.02 |
|
GROSS PROFIT MARGIN |
% |
9.46 |
4.35 |
0.99 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.18 |
(1.19) |
(3.20) |
|
NET PROFIT MARGIN |
% |
(1.03) |
(3.59) |
(5.22) |
|
RETURN ON EQUITY |
% |
- |
- |
- |
|
RETURN ON ASSET |
% |
(1.77) |
(7.47) |
(9.33) |
|
EARNING PER SHARE |
BAHT |
(3.73) |
(18.27) |
(26.68) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
1.46 |
1.38 |
1.26 |
|
DEBT TO EQUITY RATIO |
TIMES |
(3.18) |
(3.64) |
(4.84) |
|
TIME INTEREST EARNED |
TIMES |
0.68 |
(0.50) |
(1.58) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(29.11) |
(0.38) |
|
|
OPERATING PROFIT |
% |
(229.58) |
(62.88) |
|
|
NET PROFIT |
% |
79.58 |
31.50 |
|
|
FIXED ASSETS |
% |
(12.88) |
(8.59) |
|
|
TOTAL ASSETS |
% |
(13.90) |
(14.42) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -29.11%. Turnover has decreased from THB
1,735,871,196.07 in 2011 to THB 1,230,574,698.33 in 2012. While net profit has
increased from THB -62,312,822.85 in 2011 to THB -12,722,218.63 in 2012. And
total assets has decreased from THB 834,063,312.40 in 2011 to THB
718,123,877.60 in 2012.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
9.46 |
Deteriorated |
Industrial
Average |
23.78 |
|
Net Profit Margin |
(1.03) |
Deteriorated |
Industrial
Average |
1.64 |
|
Return on Assets |
(1.77) |
Deteriorated |
Industrial
Average |
2.32 |
|
Return on Equity |
- |
|
Industrial
Average |
5.94 |
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 9.46%. 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. The company's figure is -1.03%.
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 -1.77%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.39 |
Risky |
Industrial
Average |
1.33 |
|
Quick Ratio |
0.10 |
|
|
|
|
Cash Conversion Cycle |
38.43 |
|
|
|
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 0.39 times in 2012, decreased from 0.44 times, then the company may
not be efficiently using its current assets. When compared with the industry
average, the ratio of the company was lower.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 0.1 times in 2012,
decreased from 0.27 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 39 days.
Trend of the average
competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
1.46 |
Risky |
Industrial
Average |
0.59 |
|
Debt to Equity Ratio |
(3.18) |
Risky |
Industrial
Average |
1.50 |
|
Times Interest Earned |
0.68 |
Risky |
Industrial
Average |
0.72 |
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 higher the percentage means that the company is using less equity
and has stronger leverage position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 0.68 lower than 1, so the company is not generating
enough cash from EBIT to meet its
interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 1.46 greater than 0.5, most of the
company's assets are financed through debt.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Downtrend
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.19 |
Impressive |
Industrial
Average |
0.10 |
|
Total Assets Turnover |
1.71 |
Impressive |
Industrial
Average |
1.33 |
|
Inventory Conversion Period |
79.13 |
|
|
|
|
Inventory Turnover |
4.61 |
Impressive |
Industrial
Average |
4.10 |
|
Receivables Conversion Period |
26.81 |
|
|
|
|
Receivables Turnover |
13.61 |
Impressive |
Industrial
Average |
2.70 |
|
Payables Conversion Period |
67.52 |
|
|
|
The company's Account Receivable Ratio is calculated as 13.61 and 6.31
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 31 days at the
end of 2011 to 79 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 11.91 times in year 2011 to 4.61
times in year 2012.
The company's Total Asset Turnover is calculated as 1.71 times and 2.08
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 Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.66 |
|
|
1 |
Rs.100.46 |
|
Euro |
1 |
Rs.84.60 |
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.