MIRA
INFORM REPORT
|
Report Date : |
11.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
YKK
[THAILAND] COMPANY LIMITED |
|
|
|
|
Formerly Known as: |
YKK Zipper [Thailand]
Co., Ltd. |
|
|
|
|
Registered Office : |
9th
Floor, Manoonphol Building
2, 2884/1 New Petchburi
Road, Bangkapi, Huaykwang,
Bangkok 10320 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
06.10.1977 |
|
|
|
|
Com. Reg. No.: |
0105520014328 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
engaged
in manufacturing and
distributing three types of
zip fasteners in
various sizes and
colors in nylon
and metal, and
vision including hook
and loop fasteners, buttons,
buckles and etc.,
under its own
brand “YKK”, as
well as manufacturing service
of the products
under customer’s brands and requirements. |
|
|
|
|
No. of Employees : |
400 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 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
YKK [THAILAND] COMPANY
LIMITED
SUMMARY
BUSINESS
ADDRESS : 9th FLOOR,
MANOONPHOL BUILDING 2,
2884/1 NEW
PETCHBURI ROAD,
BANGKAPI, HUAYKWANG,
BANGKOK 10320,
THAILAND
TELEPHONE : [66] 2718-0590
FAX :
[66] 2718-0591-2
E-MAIL
ADDRESS : somkiat_i@ykk.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1977
REGISTRATION
NO. : 0105520014328
TAX
ID NO. : 3101052152
CAPITAL REGISTERED : BHT. 80,000,000
CAPITAL PAID-UP : BHT.
80,000,000
SHAREHOLDER’S PROPORTION : FOREIGN
: 100%
FISCAL YEAR CLOSING DATE : MARCH 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SAKATO NAGASAKI,
JAPANESE
MANAGING DIRECTOR
NO.
OF STAFF : 400
LINES
OF BUSINESS : ZIP
FASTENERS AND RELATED
PRODUCTS
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 October 6,
1977 as a
private limited company
under the initially
registered name “YKK
[Thailand] Company Limited”
by Thai and
Japanese groups.
On
June 23, 1978,
the subject’s name
was changed to “YKK Zipper
[Thailand] Co., Ltd.”.
On
September 19, 1995,
its name was
finally changed to
YKK [THAILAND] COMPANY
LIMITED.
The
business objective is
a manufacturer and distributor various
kinds of zip
fasteners and related products
for domestic and
international markets. It
currently employs approximately 400
staff.
At
present, the subject
becomes a subsidiary
of YKK Holding
Asia Pte. Ltd.,
Singapore, which is a member
of YKK Corporation
of Japan.
The
subject’s registered address
was initially at 9th Floor,
F.C.I. Building 2, 2884/1
New Petchburi Rd.,
Bangkapi, Huaykwang, Bangkok
10320.
On
September 1, 2003,
the subject’s registered
address was changed
to 9th Floor, Manoonphol
Building 2, 2884/1
New Petchburi Rd.,
Bangkapi, Huaykwang, Bangkok
10320, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ken Nakano |
|
Japanese |
64 |
|
Mr. Sakato Hagasaki |
[x] |
Japanese |
59 |
|
Mr. Takashi Kozawa |
|
Japanese |
47 |
AUTHORIZED PERSON
Only the mentioned
director [x] can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Sakato Hagasaki is
the Managing Director.
He is Japanese
nationality with the
age of 59
years old.
Mr. Somkiat Itthipochana is
the Export Sales
Manager.
He is Thai
nationality.
Mr. Manu Chainukul is
the Personnel &
Administration Manager.
He is Thai
nationality.
Mr. Chantachoti Sudhasoontorn is
the Domestic Sales
Manager.
He is Thai
nationality.
Mr. Peetikorn Suramanont is
the Factory Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s core
business is engaged
in manufacturing and
distributing three types of
zip fasteners in
various sizes and
colors in nylon
and metal, and
vision including hook
and loop fasteners, buttons,
buckles and etc.,
under its own
brand “YKK”, as well as
manufacturing service of
the products under
customer’s brands and
requirements.
The products are as follows:
-
Zipper
[plastic/metal]
-
Quicklon
-
Joylon
-
Real
belt adjuster
-
Ball chain
-
Metal notion
-
Plastic
& die casting
notion
-
Tape notion
-
etc.
PRODUCTION
150,000,000 pieces/year
PURCHASE
Raw materials such as
nylon, plastic resin,
steel, aluminum and
accessories are purchased
from suppliers both
local and overseas
mainly in Japan,
Taiwan, Indonesia, United
States of America,
Germany and France.
MAJOR SUPPLIERS
YKK
Corporation : Japan
IRPC
Public Company Limited : Thailand
SALES
80% of the
products is sold
locally by wholesale
to dealers and
manufacturers, and the
remaining 20% is
exported to Japan,
Malaysia, Cambodia, Vietnam,
Laos, India,
United Kingdom, France,
United States of
America and Singapore.
PARENT
COMPANY
YKK
Holding Asia Pte.
Ltd.
Address
: 152 Beach
Rd., Gateway East,
Singapore.
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 subject
for the past
two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60-90 days.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office : 333 Silom
Rd., Silom, Bangrak,
Bangkok]
Siam Commercial Bank
Public Co., Ltd.
[Head Office : 9
Ratchadapisek Rd., Ladyao,
Jatujak, Bangkok]
Bank of Tokyo-Mitsubishi UFJ
Ltd.
[Bangkok Branch : 54
North Sathorn Rd.,
Silom, Bangrak, Bangkok]
EMPLOYMENT
The
subject employs approximately
400 office staff
and factory workers.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Factory
and warehouse are
located at 689
Sukhumvit Rd., K.M.
35, Bangpoomai, Muang,
Samutprakarn 10280 on
40 acres plot
of land.
Tel
: [66] 2323-9041
Fax. : [66] 2323-9522.
COMMENT
The
company is a
renowned zip fastener
manufacturing and one of
the leading manufactures
and distributors of
high quality zip
fasteners, hook and loop fasteners,
buttons, buckles and
other similar products
competing on the
world market.
The company
has played a
significant role in
the development of
the country’s garment
and bag industries, particularly
by transferring advanced
technology and know-how
for YKK CORPORATION
Japan. It is dedicated
to the manufacturer
of a superior
of fastening products
together with a
high degree of
service to ensure
customers’ needs.
Subject has
developed a wide
range of new products
to supply end-users
and customer’s requirement
at competitive prices
to compete in
the world market.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 20,000,000
divided into 200,000
shares of Bht.
100 each.
The
capital was increased
later as following:
Bht. 22,000,000
on August 21,
1978
Bht. 40,000,000
on April 9,
1979
Bht. 80,000,000
on June 4,
1990
The
latest registered capital
was increased to Bht. 80,000,000 divided
into 800,000 shares
of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
July 25, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
YKK Holding Asia Pte.
Ltd. Nationality: Singaporean Address : 152
Beach Rd., Gateway
East, Singapore |
799,994 |
100.00 |
|
Mr. Koichi Igarashi Nationality: Japanese Address : 51/2
Sukhumvit 49 Road,
Klongtonnua,
Wattana, Bangkok |
1 |
- |
|
Mr. Takashi Kozawa Nationality: Japanese Address : 2884/1
Petchburi Road, Bangkapi,
Huaykwang, Bangkok |
1 |
- |
|
Mr. Aei Ito Nationality: Japanese Address : 84/46
Sukhumvit 55 Road,
Klongtonnua,
Wattana, Bangkok |
1 |
- |
|
Mr. Koichi Yano Nationality: Japanese Address : 89
Sukhumvit 55 Road,
Klongtonnua,
Wattana, Bangkok |
1 |
- |
|
Mr. Hiroaki Takemoto Nationality: Japanese Address : 15
Soi Sukhumvit 24,
Klongton,
Klongtoey, Bangkok |
1 |
- |
|
Mr. Sakato Nagasaki Nationality: Japanese Address : 2884/1
New Petchaburi Rd.,
Bangkapi, Huaykwang, Bangkok |
1 |
- |
Total Shareholders : 7
Share Structure [as
at July 25,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
7 |
800,000 |
100.00 |
|
Total |
7 |
800,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Chayapol Supasethanand No.
3972
BALANCE SHEET [BAHT]
The latest financial figures published
as at March
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
398,729,774 |
251,098,410 |
434,012,594 |
|
Short-term Investment |
30,000,000 |
118,000,000 |
105,000,000 |
|
Trade Accounts & Other Receivable |
345,645,022 |
346,802,966 |
346,850,490 |
|
Inventories |
389,773,245 |
355,019,918 |
405,157,121 |
|
Other Current Assets
|
8,410,632 |
8,402,128 |
6,984,262 |
|
|
|
|
|
|
Total Current Assets
|
1,172,558,673 |
1,079,323,422 |
1,298,004,467 |
|
Investment Property |
8,541,812 |
8,541,812 |
- |
|
Fixed Assets |
304,517,329 |
244,440,796 |
240,753,646 |
|
Intangible Assets |
2,993,464 |
3,260,831 |
1,776,772 |
|
Other Non-current Assets |
3,933,025 |
3,975,725 |
3,818,910 |
|
Total Assets |
1,492,544,303 |
1,339,542,586 |
1,544,353,795 |
LIABILITIES & SHAREHOLDERS’
EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts & Other Payable
|
208,262,948 |
222,896,736 |
274,001,824 |
|
Accrued Income Tax |
38,580,221 |
29,773,295 |
69,113,488 |
|
Provision for Long-term Employee Benefits |
6,852,119 |
- |
- |
|
Other Current Liabilities |
9,303,143 |
31,555,592 |
8,579,517 |
|
|
|
|
|
|
Total Current Liabilities |
262,998,431 |
284,225,623 |
351,694,829 |
|
|
|
|
|
|
Provision for Long-term Employee Benefits |
65,454,444 |
73,261,053 |
- |
|
Total Liabilities |
328,452,875 |
357,486,676 |
351,694,829 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 800,000 shares |
80,000,000 |
80,000,000 |
80,000,000 |
|
|
|
|
|
|
Capital Paid |
80,000,000 |
80,000,000 |
80,000,000 |
|
Retained Earnings: Appropriated for Statutory Reserve |
8,000,000 |
8,000,000 |
8,000,000 |
|
Unappropriated |
1,076,091,428 |
894,055,910 |
1,104,658,966 |
|
Total Shareholders' Equity |
1,164,091,428 |
982,055,910 |
1,192,658,966 |
|
Total Liabilities & Shareholders' Equity |
1,492,544,303 |
1,339,542,586 |
1,544,353,795 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
Jan. 1,
2011- March 31,
2011 |
|
|
|
|
|
|
Sales and Services Income |
1,619,166,687 |
1,475,080,324 |
387,773,321 |
|
Other Income |
51,039,773 |
15,568,574 |
4,529,135 |
|
Total Revenues |
1,670,206,460 |
1,490,648,898 |
392,302,456 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
1,092,147,046 |
1,002,528,188 |
278,606,117 |
|
Selling Expenses |
163,815,652 |
153,903,047 |
30,166,336 |
|
Administrative Expenses |
128,654,481 |
118,819,289 |
37,259,172 |
|
Total Expenses |
1,384,617,179 |
1,275,250,524 |
346,031,625 |
|
|
|
|
|
|
Profit before Financial
Expenses & Income
Tax |
285,589,281 |
215,398,374 |
46,270,831 |
|
Financial Expenses |
[2,745] |
[585] |
[394] |
|
Profit before Income Tax |
285,586,536 |
215,397,789 |
46,270,437 |
|
Income Tax |
[67,415,018] |
[65,042,344] |
[18,565,375] |
|
|
|
|
|
|
Net Profit / [Loss] |
218,171,518 |
150,355,445 |
27,705,062 |
Financial analysis
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
4.46 |
3.80 |
3.69 |
|
QUICK RATIO |
TIMES |
2.94 |
2.52 |
2.52 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.32 |
6.03 |
1.61 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.08 |
1.10 |
0.25 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
130.26 |
129.26 |
530.79 |
|
INVENTORY TURNOVER |
TIMES |
2.80 |
2.82 |
0.69 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
77.92 |
85.81 |
326.48 |
|
RECEIVABLES TURNOVER |
TIMES |
4.68 |
4.25 |
1.12 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
69.60 |
81.15 |
358.97 |
|
CASH CONVERSION CYCLE |
DAYS |
138.58 |
133.92 |
498.31 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
67.45 |
67.96 |
71.85 |
|
SELLING & ADMINISTRATION |
% |
18.06 |
18.49 |
17.39 |
|
INTEREST |
% |
0.00 |
0.00 |
0.00 |
|
GROSS PROFIT MARGIN |
% |
35.70 |
33.09 |
29.32 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
17.64 |
14.60 |
11.93 |
|
NET PROFIT MARGIN |
% |
13.47 |
10.19 |
7.14 |
|
RETURN ON EQUITY |
% |
18.74 |
15.31 |
2.32 |
|
RETURN ON ASSET |
% |
14.62 |
11.22 |
1.79 |
|
EARNING PER SHARE |
BAHT |
272.71 |
187.94 |
34.63 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.22 |
0.27 |
0.23 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.28 |
0.36 |
0.29 |
|
TIME INTEREST EARNED |
TIMES |
104,039.81 |
368,202.35 |
117,438.66 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
9.77 |
280.40 |
|
|
OPERATING PROFIT |
% |
32.59 |
365.52 |
|
|
NET PROFIT |
% |
45.10 |
442.70 |
|
|
FIXED ASSETS |
% |
24.58 |
1.53 |
|
|
TOTAL ASSETS |
% |
11.42 |
(13.26) |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 9.77%.
Turnover has increased from THB 1,475,080,324.00 in 2012 to THB
1,619,166,687.00 in 2013. While net profit has increased from THB
150,355,445.00 in 2012 to THB 218,171,518.00 in 2013. And total assets has
increased from THB 1,339,542,586.00 in 2012 to THB 1,492,544,303.00 in 2013.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
35.70 |
Satisfactory |
Industrial
Average |
39.36 |
|
Net Profit Margin |
13.47 |
Impressive |
Industrial
Average |
6.45 |
|
Return on Assets |
14.62 |
Impressive |
Industrial
Average |
10.47 |
|
Return on Equity |
18.74 |
Satisfactory |
Industrial
Average |
19.30 |
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 35.7%. 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 13.47%, 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 14.62%, 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. When compared with the
industry average, it was lower, the company's figure is 18.74%.
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 |
4.46 |
Impressive |
Industrial
Average |
1.84 |
|
Quick Ratio |
2.94 |
|
|
|
|
Cash Conversion Cycle |
138.58 |
|
|
|
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 4.46 times in 2013, increased from 3.8 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 2.94 times in 2013,
increased from 2.52 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 139 days.
Trend of the average
competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.22 |
Impressive |
Industrial
Average |
0.45 |
|
Debt to Equity Ratio |
0.28 |
Impressive |
Industrial
Average |
0.81 |
|
Times Interest Earned |
104,039.81 |
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 104039.82 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 0.22 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
5.32 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.08 |
Acceptable |
Industrial
Average |
1.62 |
|
Inventory Conversion Period |
130.26 |
|
|
|
|
Inventory Turnover |
2.80 |
Satisfactory |
Industrial
Average |
3.06 |
|
Receivables Conversion Period |
77.92 |
|
|
|
|
Receivables Turnover |
4.68 |
Impressive |
Industrial
Average |
3.55 |
|
Payables Conversion Period |
69.60 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.68 and 4.25 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
increased from 2012. 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 129 days at the
end of 2012 to 130 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 2.82 times in year 2012 to 2.8 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.08 times and 1.1
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.61.94 |
|
UK Pound |
1 |
Rs.102.06 |
|
Euro |
1 |
Rs.84.31 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.