MIRA INFORM REPORT
|
Report Date : |
19.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
SIAM QUALITY STARCH CO., LTD. |
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Registered Office : |
38/6 Moo 11, |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
08.12.1992 |
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Com. Reg. No.: |
0105535162662 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is engaged in manufacturing, exporting and distributing native and modified tapioca starches for various industries, such as foods, paper, textiles and adhesive. |
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No of Employees : |
300 |
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 |
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Payment Behaviour : |
No Complaints |
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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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate 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 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
SIAM QUALITY
STARCH CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 38/6
MOO 11, PATHUMTHANI-LADLUMKAEW ROAD,
T. KUBANGLUANG,
A. LADLUMKAEW,
PATHUMTHANI 12140,
THAILAND
TELEPHONE : [66] 2598-3135-8,
2598-1123-9
FAX :
[66] 2598-3139,
2598-1130
E-MAIL
ADDRESS : info@sqs.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1992
REGISTRATION
NO. : 0105535162662
TAX
ID NO. : 3011213568
CAPITAL REGISTERED : BHT. 380,000,000
CAPITAL PAID-UP : BHT.
380,000,000
SHAREHOLDER’S PROPORTION : THAI :
82.74%
JAPANESE :
17.26%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SUMATE SRIVARAKIAT, THAI
MANAGING DIRECTOR
AND FACTORY MANAGER
NO.
OF STAFF : 300
LINES
OF BUSINESS : TAPIOCA STARCH
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
|
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on December 8,
1992 as a
private limited company
under the name
style SIAM QUALITY
STARCH CO., LTD.,
by Thai and
Japanese groups, with
the business objective to
manufacture native and
modified starches to
both domestic and
oversea markets. It
currently employs approximately 300 staff.
The subject is
a member of The
Poon Phol Group of
companies.
In
2013, the subject
has been promoted
by Thailand’s Board
of Investment [BOI] to
expand the production
capacity to 112,000 tons
per annum, which
will be start in
January 2015.
Subject
achieved the quality
standard ISO 9001:2000
certificate, as well
as HACCP, Halal
and Kosher standards
under the brand
“Siam Modified Starch”.
The
subject’s registered address
is 38/6 Moo 11,
Pathumthani-Ladlumkaew Rd.,
T. Kubangluang, A. Ladlumkaew, Pathumthani
12140, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sukij Wanglee |
|
Thai |
84 |
|
Mr. Petch Wanglee |
|
Thai |
50 |
|
Mr. Danai-thanit Bisalputra |
|
Thai |
56 |
|
Mr. Sumate Srivarakiat |
|
Thai |
61 |
|
Mr. Weerawat Lertwanawatana |
|
Thai |
62 |
|
Mrs. Puangrut Jirawutitanun |
|
Thai |
49 |
|
Mr. Yoshinobu Matsutani |
|
Japanese |
67 |
|
Mr. Ryo Matsutani |
|
Japanese |
31 |
|
Mr. Eijiro Matsutani |
|
Japanese |
88 |
|
Mr. Natachai Wanglee |
|
Thai |
39 |
|
Mrs. Haruyo Matsutani |
|
Japanese |
61 |
|
Mr. Thamrongrat Bisalputra |
|
Thai |
47 |
|
Mr. Khem Wanglee |
|
Thai |
39 |
AUTHORIZED PERSON
Two of the
above directors can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Sumate Srivarakiat is
the Managing Director
and Factory Manager.
He is Thai
nationality with the age
of 61 years
old.
Mr. Weerawat Lertwanawatana is
the Deputy Managing
Director.
He is Thai
nationality with the
age of 62
years old.
Mr. Banlu Siripetch is
the Production Manager.
He is Thai
nationality.
Mr. Khem Wanglee is
the Sales &
Marketing Manager.
He is Thai
nationality with the
age of 39
years old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing, exporting
and distributing native
and modified tapioca
starches for various
industries, such as
foods, paper, textiles
and adhesive.
MAJOR BRAND
“SIAM MODIFIED STARCH”
PRODUCTION CAPACITY
112,000 tons per
annum [as of
January 1, 2015]
PURCHASE
100% of raw
material mainly tapioca
root and chemicals
are purchased from
local suppliers.
EXPORT
80% of the
products is exported
to U.S.A., Australia,
Canada, South Africa,
and the countries
in Europe, Asia
and Middle East
regions.
SALES [LOCAL]
20% of the products is
sold locally through
Siam Modified Starch
Co., Ltd.
MAJOR CUSTOMERS
Matsutani Chemical Industry
Co., Ltd. : Japan
Sitthinan Co., Ltd. : Thailand
RELATED AND AFFILIATED
COMPANIES
The Poon Phol
Group of companies,
consist of:
Poon Phol Co.,
Ltd.
Business Type :
Holding company and
distributor of agriculture
products
Siam Modified Starch
Co., Ltd.
Business Type :
Manufacturer and distributor
of modified starch
Pipatanasin Co., Ltd.
Business Type :
Property management
Poonpipat Co., Ltd.
Business Type :
Warehouse rental service
Rangsit Ruampatana Co.,
Ltd.
Business Type :
Owner and operator
of Rangsit fresh
market
Sitthinan Co., Ltd.
Business Type : Manufacturer and
distributor of quality
green mung
Thanakorn Vegetable Oil
Products Co., Ltd.
Business Type :
Manufacturer and distributor
of vegetable oil
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 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.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately
300 staff comprising:
Pathumthani
factory : 100
staff
Chaiyaphum
factory : 200
staff
LOCATION DETAILS
The
premise is owned
for administrative office,
factory I and warehouse
at the heading
address. Premise is
located in provincial.
The factory
II is located at
222-223 Moo 10,
Suranarai Rd., T. Kokrerngrom,
A. Bamnetnarong, Chaiyaphum
36160. Tel : [66]
44 815-555, Fax
: [66] 44
815-550.
COMMENT
The
subject was formed
in 1992 as
a manufacturer, distributor
and exporter of
tapioca starch. The products
are for various
industries. Its business
performance is related
to the growth
and improvement of
various industries such
as foods, paper
and etc.
Subject
reported good business
in 2013, as
well as its
business in 2014 is
promising.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 100,000,000
divided into 1,000,000
shares of Bht. 100
each.
The
capital was increased
later as following:
Bht. 150,000,000 on
July 7, 1993
Bht. 180,000,000 on
April 23, 1996
Bht. 380,000,000 on
September 6, 2005
The
latest registered capital
was increased to
Bht. 380 million, divided
into 3,800,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE : [as at
April 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Poon Phol Co.,
Ltd. Nationality: Thai Address : 90/54-57
North Sathorn Rd.,
Silom,
Bangrak, Bangkok |
950,000 |
25.00 |
|
Pipatanasin Co., Ltd. Nationality: Thai Address : 90/54-57
North Sathorn Rd.,
Silom,
Bangrak, Bangkok |
950,000 |
25.00 |
|
Siam Modified Starch
Co., Ltd. Nationality: Thai Address : 90/54-57
North Sathorn Rd.,
Silom,
Bangrak, Bangkok |
494,462 |
13.01 |
|
Matsutani Europe B.V. Nationality: Japanese Address : Amsterdam,
The Netherlands |
463,714 |
12.20 |
|
Sitthinan Co., Ltd. Nationality: Thai Address : 90/54-57
North Sathorn Rd.,
Silom,
Bangrak, Bangkok |
411,233 |
10.82 |
|
Matsutani Co., Ltd. Nationality: Japanese Address : 5-3
Kita-Itami, Itami City,
Hyogo, Japan |
192,000 |
5.05 |
|
Poonpipat Co., Ltd. Nationality: Thai Address : 90/54-57
North Sathorn Rd.,
Silom,
Bangrak, Bangkok |
177,834 |
4.68 |
|
P P M Holding Co.,
Ltd. Nationality: Thai Address : 90/54-57
North Sathorn Rd.,
Silom,
Bangrak, Bangkok |
160,757 |
4.24 |
Total Shareholders : 8
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
3,144,286 |
82.74 |
|
Foreign - Japanese |
2 |
655,714 |
17.26 |
|
Total |
8 |
3,800,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Krongkaew Limkittikul No.
5874
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 |
5,052,462 |
400,646 |
16,438,838 |
|
Trade Accounts & Other Receivable |
430,916,700 |
358,280,108 |
427,654,390 |
|
Inventories |
625,108,302 |
627,210,683 |
719,448,539 |
|
Other Current Assets
|
7,910,731 |
9,773,670 |
5,660,317 |
|
|
|
|
|
|
Total Current Assets
|
1,068,988,195 |
995,665,107 |
1,169,202,084 |
|
Investment in Subsidiaries |
39,999,700 |
- |
- |
|
Fixed Assets |
1,218,802,819 |
1,217,456,965 |
1,366,523,131 |
|
Intangible Assets |
15,403,783 |
17,435,635 |
1,371,653 |
|
Deposits |
511,519 |
511,238 |
3,145,438 |
|
Total Assets |
2,343,706,016 |
2,231,068,945 |
2,540,242,306 |
LIABILITIES & SHAREHOLDERS’ EQUITY
[BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institutions |
860,567,307 |
898,969,390 |
1,331,290,470 |
|
Trade Accounts &
Other Payable |
225,335,273 |
206,078,065 |
224,873,251 |
|
Other Current Liabilities |
14,505,326 |
15,122,722 |
18,575,298 |
|
|
|
|
|
|
Total Current Liabilities |
1,100,407,906 |
1,120,170,177 |
1,574,739,019 |
|
|
|
|
|
|
Reserve for Employee’s Benefit |
8,766,750 |
7,821,550 |
6,867,150 |
|
Total Liabilities |
1,109,174,655 |
1,127,991,727 |
1,581,606,169 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 3,800,000 shares |
380,000,000 |
380,000,000 |
380,000,000 |
|
|
|
|
|
|
Capital Paid |
380,000,000 |
380,000,000 |
380,000,000 |
|
Premium on Share Capital |
30,000,000 |
30,000,000 |
30,000,000 |
|
Retained Earning Appropriated for Statutory
Reserve |
38,000,000 |
38,000,000 |
- |
|
Unappropriated |
786,531,360 |
655,077,218 |
548,636,137 |
|
Total Shareholders' Equity |
1,234,531,360 |
1,103,077,218 |
958,636,137 |
|
Total Liabilities &
Shareholders' Equity |
2,343,706,016 |
2,231,068,945 |
2,540,242,306 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
3,325,674,115 |
3,178,235,185 |
3,208,905,806 |
|
Gain on Exchange Rate |
6,704,552 |
2,937,661 |
23,167,979 |
|
Other Income |
92,330,708 |
75,320,731 |
78,216,306 |
|
Total Revenues |
3,424,709,375 |
3,256,493,577 |
3,310,290,091 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,573,504,211 |
2,409,338,859 |
2,393,978,430 |
|
Selling Expenses |
285,985,673 |
271,420,669 |
252,440,755 |
|
Administrative Expenses |
333,302,048 |
304,962,366 |
337,116,765 |
|
Total Expenses |
3,192,791,932 |
2,985,721,894 |
2,983,535,950 |
|
|
|
|
|
|
Profit before Financial Expenses |
231,917,443 |
270,771,683 |
326,754,141 |
|
Financial Expenses |
[24,463,301] |
[31,330,602] |
[38,379,912] |
|
Net Profit / [Loss] |
207,454,142 |
239,441,081 |
288,374,229 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.97 |
0.89 |
0.74 |
|
QUICK RATIO |
TIMES |
0.40 |
0.32 |
0.28 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.73 |
2.61 |
2.35 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.42 |
1.42 |
1.26 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
88.66 |
95.02 |
109.69 |
|
INVENTORY TURNOVER |
TIMES |
4.12 |
3.84 |
3.33 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
47.29 |
41.15 |
48.64 |
|
RECEIVABLES TURNOVER |
TIMES |
7.72 |
8.87 |
7.50 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
31.96 |
31.22 |
34.29 |
|
CASH CONVERSION CYCLE |
DAYS |
103.99 |
104.95 |
124.05 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
77.38 |
75.81 |
74.60 |
|
SELLING & ADMINISTRATION |
% |
18.62 |
18.14 |
18.37 |
|
INTEREST |
% |
0.74 |
0.99 |
1.20 |
|
GROSS PROFIT MARGIN |
% |
25.59 |
26.65 |
28.56 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
6.97 |
8.52 |
10.18 |
|
NET PROFIT MARGIN |
% |
6.24 |
7.53 |
8.99 |
|
RETURN ON EQUITY |
% |
16.80 |
21.71 |
30.08 |
|
RETURN ON ASSET |
% |
8.85 |
10.73 |
11.35 |
|
EARNING PER SHARE |
BAHT |
54.59 |
63.01 |
75.89 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.47 |
0.51 |
0.62 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.90 |
1.02 |
1.65 |
|
TIME INTEREST EARNED |
TIMES |
9.48 |
8.64 |
8.51 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
4.64 |
(0.96) |
|
|
OPERATING PROFIT |
% |
(14.35) |
(17.13) |
|
|
NET PROFIT |
% |
(13.36) |
(16.97) |
|
|
FIXED ASSETS |
% |
0.11 |
(10.91) |
|
|
TOTAL ASSETS |
% |
5.05 |
(12.17) |
|
ANNUAL GROWTH : SATISFACTORY
An annual sales growth is 4.64%. Turnover has increased from THB
3,178,235,185.00 in 2012 to THB 3,325,674,115.00 in 2013. While net profit has
decreased from THB 239,441,081.00 in 2012 to THB 207,454,142.00 in 2013. And
total assets has increased from THB 2,231,068,945.00 in 2012 to THB
2,343,706,016.00 in 2013.
PROFITABILITY : EXCELLENT
PROFITABILITY RATIO
|
Gross Profit Margin |
25.59 |
Impressive |
Industrial Average |
4.33 |
|
Net Profit Margin |
6.24 |
Impressive |
Industrial Average |
2.91 |
|
Return on Assets |
8.85 |
Impressive |
Industrial Average |
5.90 |
|
Return on Equity |
16.80 |
Impressive |
Industrial Average |
12.46 |
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 25.59%. When
compared with the industry average, the ratio of the company was higher,
indicated that company was more profitable than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that net
profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company’s figure is 6.24%, 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. Return on Assets ratio is
8.85%, 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 16.8%, 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 Downtrend
Return on Equity Downtrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.97 |
Risky |
Industrial Average |
1.23 |
|
Quick Ratio |
0.40 |
|
|
|
|
Cash Conversion Cycle |
103.99 |
|
|
|
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 0.97 times in 2013, increased from 0.89 times, then the company may have
problems meeting its short-term obligations. 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 0.4 times in 2013,
increased from 0.32 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 104 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.47 |
Impressive |
Industrial Average |
0.54 |
|
Debt to Equity Ratio |
0.90 |
Impressive |
Industrial Average |
1.19 |
|
Times Interest Earned |
9.48 |
Impressive |
Industrial Average |
- |
Debt to Equity Ratio a measurement of how much suppliers, lenders, creditors
and obligors have committed to the company versus what the shareholders have
committed. A lower the percentage means that the company is using less leverage
and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 9.49 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 0.47 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 Stable
ACTIVITY : SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.73 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.42 |
Acceptable |
Industrial Average |
2.03 |
|
Inventory Conversion Period |
88.66 |
|
|
|
|
Inventory Turnover |
4.12 |
Acceptable |
Industrial Average |
5.53 |
|
Receivables Conversion Period |
47.29 |
|
|
|
|
Receivables Turnover |
7.72 |
Impressive |
Industrial Average |
7.28 |
|
Payables Conversion Period |
31.96 |
|
|
|
The company's Account Receivable Ratio is calculated as 7.72 and 8.87 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 decreased from 95 days at the
end of 2012 to 89 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 3.84 times in year 2012 to 4.12 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.42 times and 1.42
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
|
Key Areas |
Score |
Weight |
Weighted
Score |
|
LIQUIDITY RATIO |
- |
25.00 |
- |
|
ACTIVITY RATIO |
2.67 |
20.00 |
53.40 |
|
PROFITABILITY
RATIO |
4.00 |
25.00 |
100.00 |
|
LEVERAGE RATIO |
4.00 |
10.00 |
40.00 |
|
ANNUAL GROWTH |
2.40 |
20.00 |
48.00 |
|
Total Weight
(excluding - - Score) |
|
100.00 |
|
|
|
|
|
241.40 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 63.31 |
|
|
1 |
Rs. 98.67 |
|
Euro |
1 |
Rs. 78.10 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
DPT |
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.