MIRA
INFORM REPORT
|
Report Date : |
02.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
J.J. ADVANCED PRODUCTS ( |
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|
Registered Office : |
Room 306, 30th Floor, Thai Cc Tower,
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
10.01.1996 |
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Com. Reg. No.: |
0105539003828 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Distributor of Industrial Products. |
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No. of Employees : |
31 |
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 |
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Payment Behaviour : |
Slow but correct |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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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. 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 in 2013 implemented a nation-wide 300 baht ($10) per day minimum
wage policy and deployed 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. This was expected to lead to an economic upsurge but growth has remained
slow, in part due to ongoing political unrest and resulting uncertainties.
Spending on infrastructure will require re-approval once a new government is
seated.
|
Source
: CIA |
Company Name
J.J. ADVANCED PRODUCTS [THAILAND] CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
306, 30th FLOOR,
THAI CC TOWER,
889 SOUTH
SATHORN ROAD, YANNAWA,
SATHORN, BANGKOK
10120, THAILAND
TELEPHONE : [66] 2675-6286-8
FAX :
[66] 2675-6289
E-MAIL
ADDRESS : sales@jap-thailand.com
admin@jap-thailand.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1996
REGISTRATION
NO. : 0105539003828 [Former
: 82/2539]
TAX
ID. NO. : 3011675083
CAPITAL REGISTERED : BHT. 50,000,000
CAPITAL PAID-UP : BHT.
50,000,000
SHAREHOLDER’S PROPORTION : THAI
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SIRICHAI CHANTHACHAIWAT, THAI
MANAGING DIRECTOR
NO. OF
STAFF : 31
LINES
OF BUSINESS : INDUSTRIAL PRODUCTS
IMPORTER 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 January
10, 1996 as
a private limited
company under the
registered name J.J. ADVANCED PRODUCTS
[THAILAND] CO., LTD., by
Thai groups, with the
business objective to
import and distribute
wide range of
industrial products to domestic market. It
currently employs 31
staff.
The subject’s initial
registered address was 32nd Floor,
Thai CC Tower,
889 South Sathorn Rd., Yannawa, Sathorn, Bangkok 10120.
On October 17,
2011, the subject’s
registered address was
moved from “32nd Floor”
to “Room 306,
30th Floor” in
the same building,
this is also the subject’s
current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sirichai Chanthachaiwat |
[x] |
Thai |
59 |
|
Mr. Sirisak Chanthachaiwat |
|
Thai |
56 |
|
Mr. Somdee Sritabovornpaibul |
|
Thai |
61 |
|
Ms. Pannin [Orawan]
Piriyapornsanti |
|
Thai |
35 |
|
Mr. Nukul Mala |
|
Thai |
37 |
Note:
Ms. Orawan Piriyapornsanti changed
her name to Ms.
Pannin Piriyapornsanti on
August 7, 2009.
AUTHORIZED PERSON
Only the mentioned
director [x] can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Sirichai Chanthachaiwat is
the Managing Director.
He is Thai
nationality with the
age of 59
years old.
Mr. Nukul Mala
is the Sales
& Marketing Manager.
He is Thai
nationality with the
age of 37
years old.
BUSINESS OPERATIONS
The subject’s activities
are importer and
distributor of high
quality industrial products
such as cap, elbow,
flange, reducer, tee,
pipe/tube, heavy wall,
pipe, pipe coupling,
hollow bar, round
bar/rod, profiles, condenser
tube, fin tube/u-tube,
sheet plate, welding
wire and etc., mainly
for petroleum and
petrochemical industry.
IMPORT [COUNTRIES]
The products are
imported from Singapore, Japan,
Korea, Taiwan, France, United Kingdom,
Germany, Sweden, Hong
Kong, Malaysia, Republic
of China, Russia,
India, U.S.A. and
etc., as well
as purchasing from
local suppliers.
MAJOR SUPPLIER
Corrosion Materials Inc. : U.S.A.
SALES [LOCAL]
100% of the
products is sold
locally to manufacturers
and end-users.
MAJOR CUSTOMERS
IRPC Public Co.,
Ltd.
Vinythai Public Co.,
Ltd.
Thai Oil Public
Co., Ltd.
Thai Plastic and
Chemical Public Co.,
Ltd.
Siam Guardian Glass
Co., Ltd.
Slot Nankai Co.,
Ltd.
Siam Occidental Electrochemical Co.,
Ltd.
PTT Public Company
Limited
Chevron Group
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 to
the past two
years.
SUBSIDIARY AND AFFILIATED COMPANY
The subject is
not found to have
any subsidiary or
affiliated company here
in Thailand.
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 T/T.
BUSINESS TRANSACTION
The products are
sold by both
cash and credit,
with the maximum
credit given at
30-60 days. The
subject is not
found to have problem
on its account
receivable.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office : 333
Silom Rd., Silom,
Bangrak, Bangkok 10500]
Kasikornbank Public Co., Ltd.
[Head Office : 1 Kasikorn Lane, Rajburana Rd., Rajburana,
Bangkok 10140]
The Siam Commercial
Bank Public Co., Ltd.
[Head Office : 9 Ratchadapisek Rd.,
Ladyao, Jatujak, Bangkok
10900]
EMPLOYMENT
The subject currently
employs 31 staff.
[office staff and service
workers]
LOCATION DETAILS
The premise is rented
for administrative office
at the heading
address. Premise is located
in a prime commercial area.
Branch and warehouse is located
at 21/20 Highway
No. 36, T. Mabka, A. Nikhompatana, Rayong
21180.
COMMENT
Slow growth and delay
industrial expansion
affected on the subject’s
business performance in the years
2012-2013. Sales were
distinctively slow.
Political unrest has
halted the country since
October 2013. It was a
key factor for investors
that deter new
investment and industrial
expansion.
FINANCIAL INFORMATION
The capital was initially
registered at Bht.
500,000 divided into
5,000 shares of
Bht. 100 each.
The capital was
increased later as
follows:
Bht. 1,000,000
on February 22,
1996
Bht. 5,000,000
on January 25,
2002
Bht. 10,000,000
on April 3,
2006
Bht. 20,000,000
on December 6,
2006
Bht. 30,000,000
on December 17,
2007
Bht. 50,000,000
on July 23,
2009
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,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Sirichai Chanthachaiwat Nationality: Thai Address : 414/14
Sathupradit Rd., Bangpongpang,
Yannawa, Bangkok |
282,654 |
56.53 |
|
Mrs. Pranee Sangsaard Nationality: Thai Address : 149/5
Charoenkrung Rd., Siphya, Bangrak,
Bangkok |
70,432 |
14.09 |
|
Mr. Siriroj Chanthachaiwat Nationality: Thai Address : 942/22
Rama 4 Rd., Suriyawongse, Bangrak,
Bangkok |
57,592 |
11.52 |
|
Mr. Sirisak Chanthachaiwat Nationality: Thai Address : 71
Chakkapak Rd., Paknam,
Muang,
Samutprakarn |
27,008 |
5.40 |
|
|
|
|
|
Mr. Olarn Pongpatipat Nationality: Thai Address : 14/2
Soi Thepsathien, Chongnonsi,
Yannawa, Bangkok |
18,600 |
3.72 |
|
Ms. Pannin Piriyapornsanti Nationality: Thai Address : 146
Soi Somdejprachaotaksin 28,
Bukkalo, Thonburi, Bangkok |
15,155 |
3.03 |
|
Mr. Nukul Mala Nationality: Thai Address : 17/5
Moo 7, T.
Buakhao, A. Banpong,
Ratchburi |
7,525 |
1.51 |
|
Mrs. Chadapa Pinpokin Nationality: Thai Address : 11/204
Moo 9, Bangkae, Bangkok 10160 |
6,027 |
1.20 |
|
Mr. Woradol Wilairak Nationality: Thai Address : 59/15 Moo
5, Thaveewattana, Bangkok |
5,052 |
1.01 |
|
Mr. Somdee Sritabovornpaibul Nationality: Thai Address : 2416/15
Charoenkrung Rd., Bangkorlaem, Bangkok |
5,017 |
1.00 |
|
Other Shareholders |
4,938 |
0.99 |
Total Shareholders : 14
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
14 |
500,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
14 |
500,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Mr. Teerasak Chuasrisakul No.
6624
BALANCE SHEET [BAHT]
The
latest financial figures
published for December 31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
16,573,842 |
18,273,198 |
9,348,954 |
|
Trade Accounts Receivable |
71,868,776 |
29,980,394 |
70,519,003 |
|
Other Receivable |
487,883 |
531,562 |
1,468,544 |
|
Inventories |
71,201,267 |
59,350,210 |
73,649,211 |
|
Advance Payment for Goods |
2,730,554 |
5,399,712 |
5,652,193 |
|
Receivable-Related Company |
705,497 |
458,817 |
472,609 |
|
Loan to Related Company |
3,500,000 |
5,260,000 |
200,000 |
|
Deferred Interest - Related
Company |
44,493 |
20,057 |
52,384 |
|
Other Current Assets
|
716,820 |
1,756,347 |
1,313,743 |
|
|
|
|
|
|
Total Current Assets
|
167,829,132 |
121,030,297 |
162,676,641 |
|
Cash at Bank pledged as a Collateral |
15,809,149 |
15,640,000 |
15,640,000 |
|
Fixed Assets |
67,616,512 |
70,817,765 |
67,869,887 |
|
Computer Programme |
330,518 |
388,008 |
445,498 |
|
Investment |
696,000 |
788,000 |
1,624,000 |
|
Deposit |
284,830 |
284,830 |
284,830 |
|
Total Assets |
252,566,141 |
208,948,900 |
248,540,856 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institutions |
110,911,695 |
59,243,106 |
79,802,894 |
|
Trade Accounts Payable |
4,706,888 |
2,999,988 |
9,052,952 |
|
Other Payable |
4,210,155 |
2,430,150 |
4,788,033 |
|
Advance from Director |
733,148 |
584,264 |
1,620,419 |
|
Short-term Loan from Person
& Related Company |
- |
- |
8,531,200 |
|
Current Portion of Financial Lease Contract Liabilities |
872,270 |
684,301 |
500,335 |
|
Current Portion of Long-term Loans |
7,894,313 |
9,447,696 |
8,948,544 |
|
Advance Income from
Goods |
460,393 |
371,709 |
7,232,866 |
|
Accrued Income Tax |
632,587 |
3,770,598 |
5,463,482 |
|
Other Current Liabilities |
2,942,520 |
2,329,615 |
2,988,102 |
|
|
|
|
|
|
Total Current Liabilities |
133,363,969 |
81,861,427 |
128,928,827 |
|
|
|
|
|
|
Financial Lease Contract
Liabilities |
2,776,663 |
3,023,234 |
98,852 |
|
Long-term Loan |
- |
7,899,816 |
17,313,817 |
|
Employee Benefits Obligation |
3,418,766 |
3,135,607 |
2,781,701 |
|
Total Liabilities |
139,559,398 |
95,920,084 |
149,123,197 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 500,000 shares |
50,000,000 |
50,000,000 |
50,000,000 |
|
|
|
|
|
|
Capital Paid |
50,000,000 |
50,000,000 |
50,000,000 |
|
Premium on Share Capital |
87,500 |
87,500 |
87,500 |
|
Retained Earning Appropriated for Statutory
Reserve |
4,216,358 |
3,296,000 |
2,679,108 |
|
Unappropriated |
58,411,885 |
59,262,316 |
46,472,051 |
|
Unrealized Profit from
Change in Value of
Securities available for
Sale |
291,000 |
383,000 |
179,000 |
|
Total Shareholders' Equity |
113,006,743 |
113,028,816 |
99,417,659 |
|
Total Liabilities &
Shareholders' Equity |
252,566,141 |
208,948,900 |
248,540,856 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
272,679,721 |
331,794,868 |
367,964,672 |
|
Other Income |
1,478,082 |
3,726,710 |
1,102,338 |
|
Total Revenues |
274,157,803 |
335,521,578 |
369,067,010 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
227,541,375 |
273,575,028 |
317,108,311 |
|
Selling Expenses |
9,782,485 |
12,720,648 |
10,954,574 |
|
Administrative Expenses |
21,803,192 |
19,414,439 |
17,488,061 |
|
Total Expenses |
259,127,052 |
305,710,115 |
345,550,946 |
|
Profit from Operation |
15,030,751 |
29,811,463 |
23,516,064 |
|
Profit/[Loss] on Exchange Rate |
[3,303,818] |
[200,417] |
363,641 |
|
|
|
|
|
|
Profit before Financial Cost & Income Tax |
11,726,933 |
29,611,046 |
23,879,705 |
|
Financial Cost |
[3,294,322] |
[4,301,076] |
[5,179,167] |
|
Income Tax |
[1,862,684] |
[6,902,813] |
[6,362,697] |
|
Net Profit / [Loss] |
6,569,927 |
18,407,157 |
12,337,841 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.26 |
1.47 |
1.26 |
|
QUICK RATIO |
TIMES |
0.67 |
0.59 |
0.63 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.03 |
4.69 |
5.42 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.08 |
1.59 |
1.48 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
114.21 |
79.18 |
84.77 |
|
INVENTORY TURNOVER |
TIMES |
3.20 |
4.61 |
4.31 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
96.20 |
32.98 |
69.95 |
|
RECEIVABLES TURNOVER |
TIMES |
3.79 |
11.07 |
5.22 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
7.55 |
4.00 |
10.42 |
|
CASH CONVERSION CYCLE |
DAYS |
202.87 |
108.16 |
144.30 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
83.45 |
82.45 |
86.18 |
|
SELLING & ADMINISTRATION |
% |
11.58 |
9.69 |
7.73 |
|
INTEREST |
% |
1.21 |
1.30 |
1.41 |
|
GROSS PROFIT MARGIN |
% |
17.10 |
18.67 |
14.12 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.51 |
8.98 |
6.39 |
|
NET PROFIT MARGIN |
% |
2.41 |
5.55 |
3.35 |
|
RETURN ON EQUITY |
% |
5.81 |
16.29 |
12.41 |
|
RETURN ON ASSET |
% |
2.60 |
8.81 |
4.96 |
|
EARNING PER SHARE |
BAHT |
13.14 |
36.81 |
24.68 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.55 |
0.46 |
0.60 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.23 |
0.85 |
1.50 |
|
TIME INTEREST EARNED |
TIMES |
4.56 |
6.93 |
4.54 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(17.82) |
(9.83) |
|
|
OPERATING PROFIT |
% |
(49.58) |
26.77 |
|
|
NET PROFIT |
% |
(64.31) |
49.19 |
|
|
FIXED ASSETS |
% |
(4.52) |
4.34 |
|
|
TOTAL ASSETS |
% |
20.87 |
(15.93) |
|
ANNUAL GROWTH: RISKY
An annual sales growth is -17.82%. Turnover has decreased from THB 331,794,868.00
in 2012 to THB 272,679,721.00 in 2013. While net profit has decreased from THB
18,407,157.00 in 2012 to THB 6,569,927.00 in 2013. And total assets has
increased from THB 208,948,900.00 in 2012 to THB 252,566,141.00 in 2013.
PROFITABILITY :
ACCEPTABLE
%20CO%20,%20LTD%20%20-%20296302%2002-Dec-2014_files/image002.gif)
PROFITABILITY RATIO
|
Gross Profit Margin |
17.10 |
Satisfactory |
Industrial
Average |
20.59 |
|
Net Profit Margin |
2.41 |
Impressive |
Industrial
Average |
1.93 |
|
Return on Assets |
2.60 |
Deteriorated |
Industrial
Average |
10.82 |
|
Return on Equity |
5.81 |
Deteriorated |
Industrial
Average |
38.25 |
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 17.1%. 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 2.41%, 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 2.6%.
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 5.81%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
%20CO%20,%20LTD%20%20-%20296302%2002-Dec-2014_files/image004.gif)
LIQUIDITY RATIO
|
Current Ratio |
1.26 |
Satisfactory |
Industrial
Average |
1.30 |
|
Quick Ratio |
0.67 |
|
|
|
|
Cash Conversion Cycle |
202.87 |
|
|
|
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 1.26 times in 2013, decreased from 1.47 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 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 0.67 times in 2013,
increased from 0.59 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 203 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
IMPRESSIVE
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%20CO%20,%20LTD%20%20-%20296302%2002-Dec-2014_files/image008.gif)
LEVERAGE RATIO
|
Debt Ratio |
0.55 |
Impressive |
Industrial
Average |
0.71 |
|
Debt to Equity Ratio |
1.23 |
Satisfactory |
Industrial
Average |
2.45 |
|
Times Interest Earned |
4.56 |
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 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 4.57 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 0.55 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 Stable
ACTIVITY:
ACCEPTABLE
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ACTIVITY RATIO
|
Fixed Assets Turnover |
4.03 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.08 |
Deteriorated |
Industrial
Average |
5.61 |
|
Inventory Conversion Period |
114.21 |
|
|
|
|
Inventory Turnover |
3.20 |
Deteriorated |
Industrial
Average |
17.44 |
|
Receivables Conversion Period |
96.20 |
|
|
|
|
Receivables Turnover |
3.79 |
Deteriorated |
Industrial
Average |
8.95 |
|
Payables Conversion Period |
7.55 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.79 and 11.07
in 2013 and 2012 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 2013
decreased from 2012. 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 79 days at the
end of 2012 to 114 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 4.61 times in year 2012 to 3.2 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.08 times and 1.59
times in 2013 and 2012 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 Stable
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.14 |
|
|
1 |
Rs.97.05 |
|
Euro |
1 |
Rs.77.37 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared by
: |
NIT |
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.