MIRA INFORM REPORT
|
Report Date : |
05.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
THAI UNITED
INDUSTRY COMPANY LIMITED |
|
|
|
|
Registered Office : |
36
Moo 7, Bangna-Trad
Rd., K.M. 8, T. Bangkaew, A. Bangplee, Samutprakarn 10540 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
07.08.1973 |
|
|
|
|
Com. Reg. No.: |
0105516008432 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
engaged in manufacturing of
separators for lead
acid batteries using
linter pulp, and
for lead acid
batteries using synthetic
pulp, as well
as glass mat
under its own
brand “TUI”. |
|
|
|
|
No of Employees : |
260 approximately |
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 |
|
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 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
THAI UNITED
INDUSTRY COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 36
MOO 7, BANGNA-TRAD
ROAD, K.M. 8,
T.
BANGKAEW, A. BANGPLEE,
SAMUTPRAKARN 10540,
THAILAND
TELEPHONE : [66] 2751-7064,
2316-6022
FAX :
[66] 2751-7065,
2316-8659, 2751-7065
E-MAIL
ADDRESS : exportdept@thaiunited.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1973
REGISTRATION
NO. : 0105516008432
TAX
ID NO. : 3101059243
CAPITAL REGISTERED : BHT. 80,000,000
CAPITAL PAID-UP : BHT.
80,000,000
SHAREHOLDER’S PROPORTION : THAI :
71.75%
FOREIGN :
28.25%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SOMCHAI VONGCHANPHEN, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 260
LINES
OF BUSINESS : BATTERY SEPARATORS
AND GLASSMATS
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 August 7,
1973 as a
private limited company
under the registered
name THAI UNITED
INDUSTRY COMPANY LIMITED, by
Thai and foreign groups, with
the business objective
to manufacture various
kinds of battery
separators and glass mats to both
local and overseas
markets. It currently employs
approximately 260 staff.
The
subject’s registered address
is 36 Moo
7, Bangna-Trad Rd.,
K.M. 8, T. Bangkaew, A. Bangplee,
Samutprakarn 10540, and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Somchai Vongchanphen |
[x] |
Thai |
73 |
|
Mr. Somsak Vongchanphen |
|
Thai |
62 |
|
Mrs. Nalinee Vongchanphen |
[x] |
Thai |
71 |
|
Mr. Kingnarong Vongchanphen |
|
Thai |
44 |
|
Mr. Kingyuth Vongchanphen |
[x] |
Thai |
40 |
|
Mr. Tony, Chau Hai
Chen : Chairman |
[x] |
Thai |
78 |
|
Mr. Goh Ban Swe |
|
Malaysian |
77 |
|
Mr. Richard Chen |
|
American |
51 |
|
Mr. Seng Hui Goh |
|
Thai |
46 |
|
Mr. Kingyong Vongchanphen |
|
Thai |
43 |
AUTHORIZED PERSON
Two of the mentioned
directors [x] can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Somchai Vongchanphen is
the Managing Director.
He is Thai
nationality with the
age of 73
years old.
Mr. Kingnarong Vongchanphen is
the Sales Director.
He is Thai
nationality with the
age of 44
years old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
of separators for
lead acid batteries
using linter pulp,
and for lead
acid batteries using
synthetic pulp, as
well as glass
mat under its
own brand “TUI”.
PRODUCTION
Separators : 1,600,000
square meters/month
Glass mat : 2,500
tons per annum
PURCHASE
Raw materials as
well as machinery
and equipment are
purchased from both
local and overseas
suppliers, mainly in
Japan, Taiwan, India
and Republic of
China.
MAJOR SUPPLIER
Awa Paper Mfg.
Co., Ltd. : Japan
SALES
60% of the
products is sold
locally by wholesale
to manufacturers, the
remaining 40% is
exported to Japan,
Singapore, Italy, U.K.,
Germany, U.S.A., and
Taiwan.
MAJOR CUSTOMERS
Siam Furukawa Co.,
Ltd. : Thailand
Siam GS Battery
Co., Ltd. : Thailand
Thai Storage Battery
Public Company Limited : Thailand
RELATED AND AFFILIATED
COMPANIES
Thai United
Plastic Industry Company
Limited
Business Type
: Manufacturer of
battery container set
Thai United
Awa Paper Company
Limited
Business Type
: Manufacturer of
filter papers
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 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.
Krung Thai Bank
Public Co., Ltd.
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
260 staff.
LOCATION
DETAILS
The
premise is owned for
administrative office at
the heading address. Premise is
located in industrial
area.
Factory
and warehouse are
located at 858
Moo 4, Bangpoo
Industrial Estate, Soi
11,
T. Prakasa,
A. Muang, Samutprakarn 10280.
Facilities:
Site
area : 16,000 square
meters
Building
area : 11,200 square
meters [total floor]
COMMENT
Despite
an overall economic
slowdown and many
industries have faced
negative factors from
economic sluggish, slow
expansion of industrial
sector and shrinking
consumer purchasing power as well
as the cheap
products from China,
the competitor of
battery industry, the
subject’s business performance
remains favourable.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 4,000,000
divided into 4,000
shares of Bht. 1,000
each.
The
capital was increased
later as following:
Bht. 8,000,000
on January 2,
1979
Bht. 40,000,000
on September 4,
1992
Bht. 80,000,000
on July 26,
1996
The
latest registered capital
was increased to
Bht. 80,000,000 divided into
80,000 shares of
Bht. 1,000 each
with fully paid.
MAIN
SHAREHOLDERS : [as
at April 30,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Somchai Vongchanphen Nationality: Thai Address :
85 Soi Chalermkhet
2, Wadthepsirin,
Pomprabsattrupai, Bangkok |
12,960 |
16.20 |
|
Ms. Somporn Vongchanphen Nationality: Thai Address : 217
Yaowaraj Road, Samphantawong, Bangkok |
8,800 |
11.00 |
|
Mr. Tony, Chau Hai
Chen Nationality: Thai Address : 27/44
Sukhumvit 19 Road,
Klongtoeynua,
Klongtoey, Bangkok |
8,500 |
10.62 |
|
Mrs. Kathy, Wang Li
Xu Chen Nationality: Thai Address : 27/44
Sukhumvit 19 Road,
Klongtoeynua,
Klongtoey, Bangkok |
6,500 |
8.12 |
|
Mrs. Mei Yun Wang
Lin Nationality: Taiwanese Address : 28
Alay 17 Lane
255 Dungkan Rd.,
Pai Tao,
Taiwan |
5,000 |
6.25 |
|
Mr. Richard Chen Nationality: Taiwanese Address : 8
Nanjing West Road,
102 Taiwan |
5,000 |
6.25 |
|
Ms. Chen I-Jing Nationality: Taiwanese Address : 8
Nanjing West Road,
102 Taiwan |
5,000 |
6.25 |
|
Mrs. Nalinee Vongchanphen Nationality: Thai Address : 83/2
Ekamai Road, Klongton,
Prakanong, Bangkok |
4,600 |
5.75 |
|
Others |
23,640 |
29.56 |
Total Shareholders : 18
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
11 |
57,400 |
71.75 |
|
Foreign |
7 |
22,600 |
28.25 |
|
|
|
|
|
|
Total |
18 |
80,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Suthep Dansiriviroj No.
3855
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 |
348,064,152.08 |
246,549,300.32 |
239,492,275.88 |
|
Trade Accounts Receivable |
244,806,313.51 |
229,526,920.14 |
196,964,588.56 |
|
Value Added Tax |
3,538,304.93 |
2,124,964.29 |
3,626,208.87 |
|
Inventories |
80,458,540.46 |
94,019,283.58 |
93,737,196.83 |
|
Other Current Assets
|
16,932,557.13 |
18,547,590.54 |
23,215,966.93 |
|
|
|
|
|
|
Total Current Assets
|
693,799,868.11 |
590,768,058.87 |
557,036,237.07 |
|
Other Investment |
161,352,500.00 |
161,352,500.00 |
161,352,500.00 |
|
Fixed Assets |
70,338,965.08 |
76,059,770.17 |
80,548,227.71 |
|
Total Assets |
925,491,333.19 |
828,180,329.04 |
798,936,964.78 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts Payable |
67,186,357.93 |
69,307,829.07 |
97,122,791.65 |
|
Accrued Income Tax |
40,577,686.85 |
38,557,462.98 |
48,072,944.95 |
|
Other Current Liabilities |
11,941,759.56 |
11,308,084.28 |
11,052,859.77 |
|
|
|
|
|
|
Total Current Liabilities |
119,705,804.34 |
119,173,376.33 |
156,248,596.37 |
|
|
|
|
|
|
Hire-purchase Liabilities |
767,664.84 |
- |
- |
|
Obligation for Employee
Benefits |
736,000.00 |
1,062,400.00 |
585,600.00 |
|
Total Liabilities |
121,209,469.18 |
120,235,776.33 |
156,834,196.37 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 80,000 shares |
80,000,000.00 |
80,000,000.00 |
80,000,000.00 |
|
|
|
|
|
|
Capital Paid |
80,000,000.00 |
80,000,000.00 |
80,000,000.00 |
|
Retained Earning Appropriated for Statutory
Reserve |
40,000,000.00 |
40,000,000.00 |
40,000,000.00 |
|
Unappropriated |
684,281,864.01 |
587,944,552.71 |
522,102,768.41 |
|
Total Shareholders' Equity |
804,281,864.01 |
707,944,552.71 |
642,102,768.41 |
|
Total Liabilities &
Shareholders' Equity |
925,491,333.19 |
828,180,329.04 |
798,936,964.78 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
1,109,002,487.41 |
1,077,830,127.02 |
1,016,195,200.44 |
|
Other Income |
20,677,353.58 |
31,282,833.28 |
17,844,924.50 |
|
Dividend Income |
- |
3,227,050.00 |
17,748,775.00 |
|
Total Revenues |
1,129,679,840.99 |
1,112,340,010.30 |
1,051,788,899.94 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
876,565,009.40 |
892,263,260.84 |
825,773,959.17 |
|
Selling Expenses |
12,015,366.14 |
14,121,866.98 |
13,901,319.05 |
|
Administrative Expenses |
40,138,635.35 |
37,552,844.51 |
36,496,978.96 |
|
Total Expenses |
928,719,010.89 |
943,937,972.33 |
876,172,257.18 |
|
Profit before Financial
Cost & Income Tax |
200,960,830.10 |
168,402,037.97 |
175,616,642.76 |
|
Financial Cost |
[45,831.95] |
[2,790.69] |
[3,135.09] |
|
Profit before Income Tax |
200,914,998.15 |
168,399,247.28 |
175,613,507.67 |
|
Income Tax |
[40,577,686.85] |
[38,557,462.98] |
[48,072,944.95] |
|
Net Profit / [Loss] |
160,337,311.30 |
129,841,784.30 |
127,540,562.72 |
|
Retained Earning, Beginning of
Year |
587,944,552.71 |
522,102,768.41 |
458,562,205.69 |
|
Less: Dividend |
[64,000,000.00] |
[64,000,000.00] |
[64,000,000.00] |
|
Retained Earning, End
of Year |
684,281,864.01 |
587,944,552.71 |
522,102,768.41 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
5.80 |
4.96 |
3.57 |
|
QUICK RATIO |
TIMES |
4.98 |
4.01 |
2.82 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
15.77 |
14.17 |
12.62 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.20 |
1.30 |
1.27 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
33.50 |
38.46 |
41.43 |
|
INVENTORY TURNOVER |
TIMES |
10.89 |
9.49 |
8.81 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
80.57 |
77.73 |
70.75 |
|
RECEIVABLES TURNOVER |
TIMES |
4.53 |
4.70 |
5.16 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
27.98 |
28.35 |
42.93 |
|
CASH CONVERSION CYCLE |
DAYS |
86.10 |
87.84 |
69.25 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
79.04 |
82.78 |
81.26 |
|
SELLING & ADMINISTRATION |
% |
4.70 |
4.79 |
4.96 |
|
INTEREST |
% |
0.00 |
0.00 |
0.00 |
|
GROSS PROFIT MARGIN |
% |
22.82 |
20.42 |
22.24 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
18.12 |
15.62 |
17.28 |
|
NET PROFIT MARGIN |
% |
14.46 |
12.05 |
12.55 |
|
RETURN ON EQUITY |
% |
19.94 |
18.34 |
19.86 |
|
RETURN ON ASSET |
% |
17.32 |
15.68 |
15.96 |
|
EARNING PER SHARE |
BAHT |
2,004.22 |
1,623.02 |
1,594.26 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.13 |
0.15 |
0.20 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.15 |
0.17 |
0.24 |
|
TIME INTEREST EARNED |
TIMES |
4,384.73 |
60,344.23 |
56,016.46 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
2.89 |
6.07 |
|
|
OPERATING PROFIT |
% |
19.33 |
(4.11) |
|
|
NET PROFIT |
% |
23.49 |
1.80 |
|
|
FIXED ASSETS |
% |
(7.52) |
(5.57) |
|
|
TOTAL ASSETS |
% |
11.75 |
3.66 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 2.89%. Turnover has increased from THB
1,077,830,127.02 in 2012 to THB 1,109,002,487.41 in 2013. While net profit has
increased from THB 129,841,784.30 in 2012 to THB 160,337,311.30 in 2013. And total
assets has increased from THB 828,180,329.04 in 2012 to THB 925,491,333.19 in
2013.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY RATIO
|
Gross Profit Margin |
22.82 |
Acceptable |
Industrial Average |
39.36 |
|
Net Profit Margin |
14.46 |
Impressive |
Industrial Average |
6.45 |
|
Return on Assets |
17.32 |
Impressive |
Industrial Average |
10.47 |
|
Return on Equity |
19.94 |
Impressive |
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 22.82%. 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 14.46%, 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 is 17.32%, 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 19.94%, 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 Uptrend
Return on Equity Uptrend
LIQUIDITY :
IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
5.80 |
Impressive |
Industrial Average |
1.84 |
|
Quick Ratio |
4.98 |
|
|
|
|
Cash Conversion Cycle |
86.10 |
|
|
|
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 5.8 times in 2013, increased from 4.96 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 4.98 times in 2013,
increased from 4.01 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 87 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.13 |
Impressive |
Industrial Average |
0.45 |
|
Debt to Equity Ratio |
0.15 |
Impressive |
Industrial Average |
0.81 |
|
Times Interest Earned |
4,384.73 |
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 4384.74 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 0.13 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 |
15.77 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.20 |
Acceptable |
Industrial Average |
1.62 |
|
Inventory Conversion Period |
33.50 |
|
|
|
|
Inventory Turnover |
10.89 |
Impressive |
Industrial Average |
3.06 |
|
Receivables Conversion Period |
80.57 |
|
|
|
|
Receivables Turnover |
4.53 |
Impressive |
Industrial Average |
3.55 |
|
Payables Conversion Period |
27.98 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.53 and 4.70 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 38 days at the
end of 2012 to 34 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 9.49 times in year 2012 to 10.89
times in year 2013.
The company's Total Asset Turnover is calculated as 1.2 times and 1.3
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.59.79 |
|
UK Pound |
1 |
Rs.102.66 |
|
Euro |
1 |
Rs.81.32 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.