MIRA INFORM REPORT
|
Report Date : |
25.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
THAI AGRI FOODS PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
155/1 Moo 1, Theparak Road, T. Bangsaothong, A. Bangsaothong, Samutprakarn 10540 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
1986 |
|
|
|
|
Com. Reg. No.: |
0107537001439 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Exporter and
Distributor of Food
Processing Products |
|
|
|
|
No. of Employees : |
900 |
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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. 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 recession severely cut Thailand's exports, with most sectors experiencing double-digit drops. In late 2011 Thailand's recovery was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. The government 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 following seven years.
|
Source
: CIA |
Company
name and address
THAI AGRI FOODS
PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 155/1 MOO 1, THEPARAK ROAD,
T. BANGSAOTHONG, A.
BANGSAOTHONG,
SAMUTPRAKARN
10540, THAILAND
TELEPHONE : [66] 2315-4171-6
FAX : [66] 2315-4169,
2315-4188
E-MAIL ADDRESS : marketing@thaiagri.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1986
REGISTRATION NO. : 0107537001439
TAX ID NO. : 3101381443
CAPITAL REGISTERED : BHT.
424,000,000
CAPITAL PAID-UP : BHT.
424,000,000
SHAREHOLDER’S PROPORTION : THAI
: 51.00%
FOREIGN :
49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
STEVEN CHAN, AUSTRALIAN
CHIEF EXECUTIVE
OFFICER
NO. OF STAFF : 900
LINES OF BUSINESS : FOOD
PROCESSING PRODUCTS
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
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 March
18, 1986 as
a private limited
company under the
name style THAI AGRI
FOODS CO., LTD., by Thai
and foreign groups,
in order to manufacture and
distribute food processing
products to both
domestic and international
markets.
On September 13,
1991, the subject
was listed at
the Stock Exchange
of Thailand with
the symbolic “TAF”, and
converted its status
to a public
limited company under
the name THAI
AGRI FOODS PUBLIC
COMPANY LIMITED on
May 9, 1994. Subject
currently employs approximately 900
staff.
It has been granted
a promotional privilege
investment by the
Board of Investment [BOI], under
the certificated no. 1455/2537, 1546/2538,
1247 (1)/2545 and 1278 (1)/2545
on July 21,
1994, July 26,
1995, April 11,
2002 and April
25, 2002, respectively
for its productions.
On November 28, 2008,
the subject was
withdrawn from the
Stock Exchange of
Thailand.
The subject’s registered
address is 155/1
Moo 1, Theparak
Rd., T. Bangsaothong,
A. Bangsaothong, Samutprakarn
10540, and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sakchai Wongmalasit |
[x] |
Thai |
77 |
|
Mr. Kittipong Leelayouva |
|
Thai |
53 |
|
Mr. Steven Chan |
[x] |
Australian |
50 |
|
Mr. Somchay Ratanavan |
[x] |
Thai |
50 |
|
Mr. Thao Phonepradit Ratanavanh |
|
Australian |
51 |
|
Mr. Prasertsak Arpornvichanop |
|
Thai |
49 |
|
Ms. Kanchana Kunapornpatrakul |
[x] |
Thai |
43 |
AUTHORIZED PERSON
Two of the
mentioned directors [x] can jointly sign
on behalf of the
subject with
company’s affixed.
MANAGEMENT
Mr. Steven Chan
is the Chief
Executive Officer.
He is Australian
nationality with the
age of 50
years old.
Mr. Kittipong Leelayouva
is the President.
He is Thai
nationality with the
age of 53
years old.
Mr. Thao Phonepradit Ratanavanh
is the General
Manager, Administration Director
and Factory Manager
[Samutprakarn].
He is Australian
nationality with the
age of 51
years old.
Ms. Supinna Itthiritkul
is the Finance
& Account Director.
She is Thai
nationality with the
age of 61
years old.
Mr. Pattharawat Pilangroj
is the Factory
Manager [Lumpoon].
He is Thai
nationality.
Mr. Peeyaphan Sunavee
is the Sales
& Marketing Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing, exporting
and distributing various
kinds of food
processing products, comprising
frozen and canned
food products, with
over 200 items.
The products and
brands are as
follows:
“AROY-D” brand:
Canned Thai cuisine
Canned fruit
Canned vegetable & meat
Canned seafood
Frozen fruit & beverage
Sweet chili sauce
for chicken
“BRIGHT” brand:
Canned Thai cuisine
Canned beverage
Canned fruit
Canned seafood
“FOCO” brand:
Canned beverage
Canned vegetable & meat
Energy drink
“PANCHY” brand:
Canned beverage
Canned vegetable & meat
“SAVOY” brand:
Canned coconut milk
“LITTLE CHEF” brand:
Ball [dessert]
Hargao
Shao mai
Ball [seafood]
Dumpling
Fish cake
Samosa
Sesame shrimp toast
Sugarcane stick
Spring roll
Wanton
“ORIENT GOURMENT” brand:
Dumpling
Spring roll
Shao mai
Sugarcane stick
Samosa
“TAF” brand:
- Shrimp
The subject also provides manufacturing
service for the products
under customer’s
requirement and brands.
PURCHASE
100% of raw materials
such as fresh
fruit & vegetable,
seafood and ingredient
are purchased from local
suppliers.
MAJOR SUPPLIERS
VR Foods Co., Ltd.
Tritact Co., Ltd.
SALES
The subject’s products
are distributed to
wholesalers, traders and
retailers both domestic
and international markets,
with over 70
countries around the
world.
80% of its products is exported
to United States of America,
France, Germany, Netherlands, United Kingdom, Hong Kong, Republic of China, Singapore,
Malaysia, Indonesia, Taiwan,
India, Vietnam, Philippines,
Korea, New Zealand,
Japan, Australia, Canada,
Middle East, Africa and
Europe, the remaining 20%
is sold locally
to wholesalers, retailers
and end-users.
SUBSIDIARY/AFFILIATED COMPANIES
V.R. Foods Co., Ltd.
Business Type: Manufacturer of
preserved vegetable and
fruits
Tritact Co., Ltd.
Business Type: Manufacturer of
packaging
Thai Agri Power
Co., Ltd.
Business Type: Producer
of electrical and
heat energy
Vietworld Co., Ltd.
Business Type: Manufacturer
and distributor of
food products in
Vietnam
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
according for the
past two years.
CREDIT
Sales are on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60-90 days.
Exports are against
L/C at sight
or T/T.
BANKING
Bangkok Bank Public Co.,
Ltd.
[Theparak Branch : Theparak Rd.,
Bangsaothong Rd., Samutprakarn]
Kasikornbank Public Co., Ltd.
[Theparak Branch : Theparak Rd.,
Bangsaothong Rd., Samutprakarn]
The Siam Commercial
Bank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
approximately 900 staff
[office, sales staff
and factory workers].
LOCATION DETAILS
The premise is
owned for administrative office
and factory I
on 81,600 square meter plot of
land at the
heading address. Premise
is located in
industrial area.
Factory II is
located on 27,200
square meters plot
of land at
16/5 Moo 4,
T. Mueng-Ji, A.
Muang, Lumpoon 51000.
Tel.: [66] 53 573-451
Factory III is
located at 2/3 Moo
2, T. Nonglalog, A.
Bankhai, Rayong 21120.
COMMENT
The subject is acting as the exporter therefore its major customers are
wide spread around the world more than 70 countries mostly are wholesalers
while the others are trading companies and retailers. Most of its major customers are located in
the United States of America, European Communities and the others
are Taiwan, Japan,
Australia, Canada and etc.
The major targeted customer group is the foreign market with highly
purchasing power countries which consist of the USA, EU and Japan. The company still maintains the existing
strong market base for more strength together with expansion of the market base
toward the markets where the company’s brands
have not been
satisfied for its
total sales.
Improvement in export
markets especially U.S.A.
and some European
countries in 2013
has contributed a good business.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 180,000,000 divided
into 18,000,000 shares of
Bht. 10 each.
Later, the capital
was increased to
Bht. 424,000,000 divided
into 42,400,000 shares
of Bht. 10
each with fully
paid.
MAIN SHAREHOLDERS
WERE
[as at
April 25, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Sakchai Wongmalasit Nationality: Thai Address : 2532
Troknokkhet, Bangklo, Bangkorlaem, Bangkok |
5,651,864 |
13.33 |
|
La Financiere Tang Nationality: French Address : 48
Avenue d’lvry 75013,
Paris |
4,143,000 |
9.77 |
|
Ms. Voranund Taveesaengpanich Nationality: Thai Address : 2529/88 Trok Nokkhet,
Bangklo,
Bangkorlaem, Bangkok |
2,873,460 |
6.78 |
|
Financiere Lafontaine Nationality: French Address : 48
Avenue d’lvry 75013,
Paris |
2,605,250 |
6.14 |
|
Ms. Pornnapas Ratanavan Nationality: Thai Address : 2529/88 Trok Nokkhet,
Bangklo,
Bangkorlaem, Bangkok |
2,476,485 |
5.84 |
|
Ms. Nannapas Ratanavan Nationality: Thai Address : 2529/88 Trok Nokkhet,
Bangklo,
Bangkorlaem, Bangkok |
2,476,485 |
5.84 |
|
Master Devlin Chan Nationality: Thai Address : 2532
Troknokkhet, Bangklo, Bangkorlaem, Bangkok |
2,076,370 |
4.90 |
|
Mr. Steven Chan Nationality: Australian Address : 2532
Troknokkhet, Bangklo, Bangkorlaem, Bangkok |
2,067,770 |
4.88 |
|
Ms. Demi Chan Nationality: Thai Address : 2532
Troknokkhet, Bangklo, Bangkorlaem, Bangkok |
1,969,126 |
4.64 |
|
Others |
16,060,190 |
37.88 |
Total Shareholders : 119
Share Structure [as
at April 25,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
103 |
21,624,000 |
51.00 |
|
Foreign |
16 |
20,776,000 |
49.00 |
|
Total |
119 |
42,400,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Dr. Virach Apimetheethamrong No.
1378
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 |
105,754,015 |
29,904,301 |
86,214,004 |
|
Trade accounts & other
receivable |
960,551,270 |
1,222,834,443 |
785,780,922 |
|
Short-term lending to related company & Subsidiary |
120,699,950 |
127,926,750 |
132,022,050 |
|
Inventories |
719,901,835 |
791,771,698 |
605,669,049 |
|
Other current assets
|
10,979,641 |
7,674,794 |
26,819,776 |
|
|
|
|
|
|
Total Current Assets
|
1,917,886,711 |
2,180,111,986 |
1,636,505,801 |
|
Investments in subsidiary |
286,900,480 |
176,688,800 |
162,122,000 |
|
General investment |
- |
- |
30,000,000 |
|
Fixed assets |
774,643,488 |
683,258,629 |
641,551,907 |
|
Intangible assets |
18,988,840 |
13,331,329 |
15,217,947 |
|
Prepayment for shares |
- |
47,055,000 |
- |
|
Other Non-current assets |
23,356,911 |
25,143,195 |
6,959,378 |
|
Total Assets |
3,021,676,430 |
3,125,588,939 |
2,492,357,033 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank overdrafts and
short-term loans from financial
institutions |
162,419,545 |
562,866,351 |
810,287,800 |
|
Trade accounts & other payable |
271,629,679 |
281,866,180 |
135,422,004 |
|
Current portion of
long-term finance lease contract
liabilities |
303,392 |
284,351 |
- |
|
Assets payable |
21,217,881 |
13,158,805 |
34,084,594 |
|
Accrued income tax |
66,572,069 |
172,600,536 |
30,520,618 |
|
Accrued expenses |
- |
- |
40,504,946 |
|
Accrued interest |
48,066 |
325,458 |
297,219 |
|
Other current liabilities |
5,277,746 |
5,591,663 |
10,279,263 |
|
|
|
|
|
|
Total Current Liabilities |
527,468,378 |
1,036,693,344 |
1,061,396,444 |
|
Finance lease contract
liabilities |
436,456 |
739,848 |
- |
|
Reserve for long-term
employee benefits |
29,841,105 |
26,568,281 |
- |
|
Total Liabilities |
557,745,939 |
1,064,001,473 |
1,061,396,444 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share capital |
|
|
|
|
Authorized share
capital Authorized share
capital 42,400,000 common
stocks of Baht 10
par value |
424,000,000 |
424,000,000 |
424,000,000 |
|
|
|
|
|
|
Issued and
paid-up share capital 42,400,000 common stocks
of Baht 10
each |
424,000,000 |
424,000,000 |
424,000,000 |
|
Additional paid-in capital |
|
|
|
|
Premium on
common stocks |
227,200,000 |
227,200,000 |
227,200,000 |
|
Retained earning |
|
|
|
|
Appropriated for |
|
|
|
|
Legal reserve |
42,400,000 |
42,400,000 |
42,400,000 |
|
Unappropriated |
1,770,330,491 |
1,367,987,466 |
737,360,589 |
|
Total Shareholders' Equity |
2,463,930,491 |
2,061,587,466 |
1,430,960,589 |
|
Total Liabilities &
Shareholders' Equity |
3,021,676,430 |
3,125,588,939 |
2,492,357,033 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
4,821,934,878 |
5,269,025,996 |
3,874,730,591 |
|
Other Income |
|
|
|
|
Sales of
by-products |
14,140,339 |
62,955,690 |
19,847,689 |
|
Compensation for
export tax |
442,949 |
514,762 |
471,944 |
|
Service income |
2,306,325 |
1,407,084 |
2,102,352 |
|
Profit on exchange
rate |
- |
22,652,633 |
- |
|
Profit on
fixed assets disposal |
628,776 |
1,864,545 |
964,547 |
|
Others |
50,627,052 |
56,950,652 |
37,918,988 |
|
Total Revenues |
4,890,080,319 |
5,415,371,362 |
3,936,036,111 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of sales |
3,840,103,656 |
4,116,958,684 |
3,257,149,384 |
|
Selling expenses |
377,230,750 |
242,415,210 |
247,461,620 |
|
Administrative expenses |
131,485,810 |
111,788,185 |
114,478,148 |
|
Loss on exchange
rate |
5,752,398 |
- |
- |
|
Directors’ remuneration |
600,000 |
600,000 |
1,666,667 |
|
Total Expenses |
4,355,172,614 |
4,471,762,079 |
3,620,755,819 |
|
|
|
|
|
|
Profit before finance cost &
income tax |
534,907,705 |
943,609,283 |
315,280,292 |
|
Finance cost |
[13,978,336] |
[22,701,574] |
[12,143,203] |
|
|
|
|
|
|
Profit before income
tax |
520,929,369 |
920,907,709 |
303,137,089 |
|
Income tax |
[118,586,344] |
[266,404,813] |
[69,034,170] |
|
Net Profit / [Loss] |
402,343,025 |
654,502,896 |
234,102,919 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
3.64 |
2.10 |
1.54 |
|
QUICK RATIO |
TIMES |
2.25 |
1.33 |
0.95 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
6.22 |
7.71 |
6.04 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.60 |
1.69 |
1.55 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
68.43 |
70.20 |
67.87 |
|
INVENTORY TURNOVER |
TIMES |
5.33 |
5.20 |
5.38 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
72.71 |
84.71 |
74.02 |
|
RECEIVABLES TURNOVER |
TIMES |
5.02 |
4.31 |
4.93 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
25.82 |
24.99 |
15.18 |
|
CASH CONVERSION CYCLE |
DAYS |
115.32 |
129.92 |
126.72 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
79.64 |
78.14 |
84.06 |
|
SELLING & ADMINISTRATION |
% |
10.55 |
6.72 |
9.34 |
|
INTEREST |
% |
0.29 |
0.43 |
0.31 |
|
GROSS PROFIT MARGIN |
% |
21.78 |
24.64 |
17.52 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
11.09 |
17.91 |
8.14 |
|
NET PROFIT MARGIN |
% |
8.34 |
12.42 |
6.04 |
|
RETURN ON EQUITY |
% |
16.33 |
31.75 |
16.36 |
|
RETURN ON ASSET |
% |
13.32 |
20.94 |
9.39 |
|
EARNING PER SHARE |
BAHT |
9.49 |
15.44 |
5.52 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.18 |
0.34 |
0.43 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.23 |
0.52 |
0.74 |
|
TIME INTEREST EARNED |
TIMES |
38.27 |
41.57 |
25.96 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(8.49) |
35.98 |
|
|
OPERATING PROFIT |
% |
(43.31) |
199.29 |
|
|
NET PROFIT |
% |
(38.53) |
179.58 |
|
|
FIXED ASSETS |
% |
13.37 |
6.50 |
|
|
TOTAL ASSETS |
% |
(3.32) |
25.41 |
|
ANNUAL
GROWTH : RISKY
An annual sales growth is -8.49%. Turnover has decreased from THB
5,269,025,996.00 in 2011 to THB 4,821,934,878.00 in 2012. While net profit has
decreased from THB 654,502,896.00 in 2011 to THB 402,343,025.00 in 2012. And
total assets has decreased from THB 3,125,588,939.00 in 2011 to THB
3,021,676,430.00 in 2012.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
21.78 |
Deteriorated |
Industrial Average |
81.83 |
|
Net Profit Margin |
8.34 |
Impressive |
Industrial Average |
4.73 |
|
Return on Assets |
13.32 |
Satisfactory |
Industrial Average |
13.82 |
|
Return on Equity |
16.33 |
Deteriorated |
Industrial Average |
38.16 |
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 21.78%. 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 8.34%,
higher figure when compared with those of its average competitors in the same
industry, indicated that business was an efficient operator in a dominant
position within its industry.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. When compared with the
industry average, it was lower, the company's figure is 13.32%.
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 16.33%.
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 |
3.64 |
Impressive |
Industrial Average |
(67.48) |
|
Quick Ratio |
2.25 |
|
|
|
|
Cash Conversion Cycle |
115.32 |
|
|
|
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 3.64 times in 2012, increased from 2.1 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 2.25 times in 2012,
increased from 1.33 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 116 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.18 |
Impressive |
Industrial Average |
0.64 |
|
Debt to Equity Ratio |
0.23 |
Impressive |
Industrial Average |
1.57 |
|
Times Interest Earned |
38.27 |
Impressive |
Industrial Average |
(1.47) |
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 38.27 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 0.18 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
6.22 |
Impressive |
Industrial Average |
(2.54) |
|
Total Assets Turnover |
1.60 |
Acceptable |
Industrial Average |
2.67 |
|
Inventory Conversion Period |
68.43 |
|
|
|
|
Inventory Turnover |
5.33 |
Impressive |
Industrial Average |
(8.36) |
|
Receivables Conversion Period |
72.71 |
|
|
|
|
Receivables Turnover |
5.02 |
Impressive |
Industrial Average |
(2.36) |
|
Payables Conversion Period |
25.82 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.02 and 4.31 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 decreased from 70 days at the
end of 2011 to 68 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 5.2 times in year 2011 to 5.33 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.6 times and 1.69
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.61.07 |
|
|
1 |
Rs.102.77 |
|
Euro |
1 |
Rs.84.49 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NNA |
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.