MIRA
INFORM REPORT
|
Report Date : |
08.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
LF ASIA
[ |
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Formerly Known As : |
IDS MARKETING [ |
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Registered Office : |
10th - 11th
Floor, Maneeya Center Building,
518/5 Ploenchit Rd.,
Lumpini, Pathumwan, Bangkok
10330 |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
21.03.1969 |
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Com. Reg. No.: |
0105512001280 [Former
: 149/2512] |
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Legal Form : |
Private
Limited Company |
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Line of Business : |
· engaged in distributing and marketing various kinds of products, specialized in Foods, Healthcare, Beauty Products and Cosmetic, Fashion Apparel, Accessories and Home Products, as well as Providing Design and Production Services. subject
is also an
Authorized Dealer of
many international brands
of watches, such
as “TIMEX”, “GO GIRL-ONLY”, “COSMOPOLITAN”, “JEEP”,
“MARC ECKO”, “NAUTICA”,
“VERSUS”, “COVER”, “INGERSOLL”
and “BRAUN”, beauty products and cosmetics
under the brands “CLIO”, “COLLECTION”, and
condom under the brand
“OKAMOTO”. |
|
|
|
|
No of Employees : |
approximately
250 [office and Sales
Staff] |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
|
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 |
With a well-developed
infrastructure, a free-enterprise economy, generally pro-investment policies,
and strong export industries,
|
Source : CIA |
Company name
LF ASIA
[THAILAND] LIMITED
[FORMER
: IDS MARKETING
[THAILAND] LIMITED]
SUMMARY
BUSINESS ADDRESS : 10th-11th FLOOR,
MANEEYA CENTER BUILDING,
518/5 PLOENCHIT
ROAD, LUMPINI,
PATHUMWAN, BANGKOK
10330
TELEPHONE : [66] 2257-3500
FAX :
[66] 2257-3555,
2257-3799, 2257-2525
E-MAIL
ADDRESS : bruceh@lfasia.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1969
REGISTRATION
NO. : 0105512001280 [Former
: 149/2512]
TAX
ID NO. : 3101067965
CAPITAL REGISTERED : BHT. 21,500,000
CAPITAL PAID-UP : BHT.
17,375,000
SHAREHOLDER’S PROPORTION : THAI :
60.00%
FOREIGN :
40.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. BRUCE GRAHAM
HEMMINGSEN, NEW ZEALANDER
GENERAL MANAGER
NO.
OF STAFF : 250
LINES
OF BUSINESS : TRADING COMPANY
IMPORTER, DISTRIBUTOR AND
SERVICE PROVIDER
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 March 21,
1969 as a
private limited company
under the name style “Anglo-Thai
Engineering Co., Ltd.” by
British groups, which was
a member of Inchcape group.
The subject’s
name was changed later
as the followings:
On September 1,
1983 : “Anglo-Thai [Thailand] Corp. Ltd.”
On February 5,
1993 : “Inchcape Healthcare Corp. Ltd.”
On June 17,
1999 : “JDH
Borneo [Thailand] Co., Ltd.”
On July 1,
2004 :
“IDS Marketing [Thailand] Limited”
On January 5,
2012, its name
was finally changed
to LF ASIA
[THAILAND] LIMITED.
Its business objective is
to import and
distribute various kinds
of products to
domestic market, as
well as provide
retail design and
production service. It
currently employs approximately
250 staff.
Currently, the major shareholders are JDH Services Ltd., Thailand and IDS Group Co., Ltd., British Virgin Islands, with holding at 60.00% and 40.00% of the subject’s total shares respectively.
The subject’s registered and business address was initially at 2160/1 Ramkhamhaeng Rd., Huamark, Bangkapi, Bangkok 10240.
On November 2, 2006, subject’s registered and business address was moved to 505 Moo 2, Udom-sorayuth Rd., T. Klongjik, A. Bangpa-in, Ayutthaya 13160.
On January 5, 2012, subject’s registered address was relocated to 10th - 11th Floor, Maneeya Center Building, 518/5 Ploenchit Rd., Lumpini, Pathumwan, Bangkok 10330, and this is the subject’s current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms. Pavinee Ajchariyahiranchai |
|
Thai |
57 |
|
Mr. Bruce Graham Hemmingsen |
|
New Zealander |
57 |
|
Mr. Pisan Taraphat |
|
Thai |
43 |
|
Mr. Nara Dacharin |
|
Thai |
36 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Bruce Graham
Hemmingsen is the
General Manager.
He is New
Zealander nationality with
the age of
57 years old.
Mr. Pisan Taraphat is
the Sales &
Marketing Manager.
He is Thai
nationality with the
age of 43
years old.
Ms. Pavinee Ajchariyahiranchai is
the Office Management
and Financial Manager.
She is Thai
nationality with the
age of 57
years old.
Ms. Sirinart Ruangsuwandej is the Senior
Marketing Manager.
She is Thai
nationality.
Ms. Nantawan Rujimora is
the Products Manager
[Watch].
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in distributing
and marketing various kinds of products, specialized in
foods, healthcare, beauty products and cosmetic,
fashion apparel, accessories
and home products,
as well as providing
design and production
services.
The subject is
also an authorized
dealer of many
international brands of
watches, such as
“TIMEX”, “GO GIRL-ONLY”, “COSMOPOLITAN”, “JEEP”,
“MARC ECKO”, “NAUTICA”,
“VERSUS”, “COVER”, “INGERSOLL”
and “BRAUN”, beauty products and cosmetics
under the brands “CLIO”, “COLLECTION”, and
condom under the brand
“OKAMOTO”.
IMPORT [COUNTRIES]
90% of the products
is imported from United Kingdom, U.S.A., Germany, France, Australia, Japan, Singapore, Taiwan,
Malaysia, Switzerland, Republic of China, India, Vietnam,
Indonesia, Hong Kong
and Spain.
MAJOR SUPPLIERS
Timax Corporation International
Ltd. : U.S.A.
Li & Fung Ltd. : Hong
Kong
Heng Ten Group
Holding Ltd. :
Hong Kong
IDS Manufacturing Ltd. : Thailand
Zeon Ltd. : U.K.
Braun GmbH. : Germany
SALES [LOCAL]
100% of the
products is sold
locally to traders,
mainly modern trade store,
supermarket, convenience store,
drug stores and
end-users such as
hospitals and clinics
both private company
and government enterprises.
MAJOR CUSTOMERS
Watson Super Store
Boots Retail Shop
RELATED/AFFILIATED COMPANIES
IDS Manufacturing Co., Ltd.
: Thailand
Business Type : Manufacturer
of foods & beverage, health & personal care
products
LF Logistics [Thailand] Co., Ltd.
:
Thailand
Business Type : Warehousing
& distribution
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.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office : 333 Silom
Rd., Silom, Bangrak,
Bangkok]
The Siam Commercial
Bank Public Co.,
Ltd.
[Head Office : 9 Ratchadapisek
Rd., Jatujak, Bangkok]
Krung Thai Bank
Public Co., Ltd.
[Head Office : 35 Sukhumvit
Rd., Klongtoeynua, Wattana,
Bangkok]
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
approximately 250 staff.
[office and sales
staff]
LOCATION DETAILS
The premise is
rented for operating
office at the
heading address. Premise
is located in
commercial/residential area.
Branches/Warehouse :
The subject currently
has 5 branches/warehouses located
in provincial as
follows:
-
505 Moo 2,
Bangpa-in Industrial Estate,
Udomsorayuth Rd., T. Klongjik,
A. Bangpa-in, Ayutthaya
13160. Tel.: [66] 35 258-500,
Fax.: [66] 35 258-475.
- 450 Moo
20, T. Saensuk, A. Varinchamrab, Ubonratchathani 34190.
- 42/9 Moo
6, T. Kokkruad, A. Muang,
Nakornratchasima 30280.
- 265/1 Moo
4, T. Banluem, A. Muang,
Udornthani 41000.
- 642/1 Ratbamrung
Road, T. Tartchoengchum, A. Muang,
Sakolnakorn 47000.
COMMENT
The subject is
one of the
leading suppliers of
pharmaceutical, healthcare, consumer
and household products, industrial
products. Its products
have been served
to all level of customers from
end-users to industrial
sector. With variety
of products has enabled the
subject to be well known among
its customers both
traders and manufacturers.
However, slow consumption
in domestic market
would diminish its
sales in 2014.
FINANCIAL INFORMATION
The capital was
registered at Bht. 1,000,000 divided
into 10,000 shares
of Bht. 100 each.
The capital was
increased later as
follows:
Bht. 16,000,000
on July 29,
1981
Bht. 21,500,000
on July 12,
2000
The latest registered
capital was increased
to Bht. 21,500,000
divided into 215,000
shares of Bht. 100 each, with
the current capital
paid-up of Bht.
17,375,000 or 55,000
shares of Bht.
25 each and
160,000 shares of Bht. 100
each.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
JDH Services Ltd. Nationality: Thai Address : 505
Moo 2, Udomsorayuth Rd.,
T.
Klongjik, A. Bangpa-in, Ayutthaya |
128,999 |
60.00 |
|
IDS Group Co.,
Ltd. Nationality: BVI Address : Tortola,
British Virgin Islands |
86,000 |
40.00 |
|
Butler and Webster
[Thailand] Ltd. Nationality: Thai Address : 505
Moo 2, Udomsorayuth Rd.,
T.
Klongjik, A. Bangpa-in, Ayutthaya |
1 |
- |
Total Shareholders : 3
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
129,000 |
60.00 |
|
Foreign-BVI |
1 |
86,000 |
40.00 |
|
Total |
3 |
215,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Sudwin Panyawongkhanti No. 3534
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 |
29,020,903 |
23,777,308 |
23297,498 |
|
Trade Accounts & Other Receivable |
860,258,731 |
780,373,679 |
786,335,920 |
|
Inventories |
216,822,538 |
220,208,680 |
153,034,805 |
|
|
|
|
|
|
Total Current Assets
|
1,106,102,172 |
1,024,359,667 |
962,668,223 |
|
Fixed Assets |
15,761,645 |
24,850,631 |
21,855,530 |
|
Intangible Assets |
260,118 |
389,185 |
637,271 |
|
Deferred Income Tax |
39,765,490 |
56,194,271 |
76,222,476 |
|
Other Non-current Assets -
Deposit |
1,223,685 |
1,156,866 |
1,875,780 |
|
Total Assets |
1,163,113,110 |
1,106,950,620 |
1,063,259,280 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts & Other Payable |
685,060,052 |
749,820,210 |
757,847,950 |
|
Short-term Loan from Related Company |
69,056,143 |
189,709,478 |
281,052,668 |
|
Accrued Income Tax |
15,167,463 |
13,113,685 |
30,081,467 |
|
Other Current Liabilities |
5,783,088 |
6,111,620 |
3,256,802 |
|
|
|
|
|
|
Total Current Liabilities |
775,066,746 |
958,754,993 |
1,072,238,887 |
|
Estimated Liabilities from Employee’s Benefit |
20,966,420 |
20,820,420 |
22,378,420 |
|
Total Liabilities |
796,033,166 |
979,575,413 |
1,094,617,307 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value Authorized & issued share
capital 215,000 shares |
21,500,000 |
21,500,000 |
21,500,000 |
|
|
|
|
|
|
Capital Paid |
17,375,000 |
17,375,000 |
17,375,000 |
|
Retained Earning - Unappropriated |
349,704,944 |
110,000,207 |
[48,733,027] |
|
Total Shareholders' Equity |
367,079,944 |
127,375,207 |
[31,358,027] |
|
Total Liabilities &
Shareholders' Equity |
1,163,113,110 |
1,106,950,620 |
1,063,259,280 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
2,561,984,812 |
2,335,545,452 |
2,892,404,803 |
|
Other Income |
133,649,347 |
163,508,140 |
76,927,958 |
|
Total Revenues |
2,695,634,159 |
2,499,053,592 |
2,969,332,761 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,946,776,854 |
1,735,171,072 |
2,285,489,108 |
|
Selling Expenses |
379,319,915 |
488,772,077 |
463,989,275 |
|
Administrative Expenses |
61,274,708 |
53,418,401 |
82,784,751 |
|
Other Expenses |
2,710,667 |
1,243,561 |
79,718,147 |
|
Total Expenses |
2,390,082,144 |
2,278,605,111 |
2,911,981,281 |
|
|
|
|
|
|
Profit before Financial Cost & Income Tax |
305,552,015 |
220,448,481 |
57,351,480 |
|
Financial Cost - Interest
Expenses |
[5,135,932] |
[9,898,645] |
[7,164,205] |
|
|
|
|
|
|
Profit before Income
Tax |
300,416,083 |
210,549,836 |
50,187,275 |
|
Income Tax |
[60,711,346] |
[51,816,602] |
[41,446,615] |
|
Net Profit / [Loss] |
239,704,737 |
158,733,234 |
8,740,660 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.43 |
1.07 |
0.90 |
|
QUICK RATIO |
TIMES |
1.15 |
0.84 |
0.76 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
162.55 |
93.98 |
132.34 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.20 |
2.11 |
2.72 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
40.65 |
46.32 |
24.44 |
|
INVENTORY TURNOVER |
TIMES |
8.98 |
7.88 |
14.93 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
122.56 |
121.96 |
99.23 |
|
RECEIVABLES TURNOVER |
TIMES |
2.98 |
2.99 |
3.68 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
128.44 |
157.73 |
121.03 |
|
CASH CONVERSION CYCLE |
DAYS |
34.77 |
10.55 |
2.64 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
75.99 |
74.29 |
79.02 |
|
SELLING & ADMINISTRATION |
% |
17.20 |
23.21 |
18.90 |
|
INTEREST |
% |
0.20 |
0.42 |
0.25 |
|
GROSS PROFIT MARGIN |
% |
29.23 |
32.71 |
23.64 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
11.93 |
9.44 |
1.98 |
|
NET PROFIT MARGIN |
% |
9.36 |
6.80 |
0.30 |
|
RETURN ON EQUITY |
% |
65.30 |
124.62 |
- |
|
RETURN ON ASSET |
% |
20.61 |
14.34 |
0.82 |
|
EARNING PER SHARE |
BAHT |
1,379.60 |
913.57 |
50.31 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.68 |
0.88 |
1.03 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.17 |
7.69 |
(34.91) |
|
TIME INTEREST EARNED |
TIMES |
59.49 |
22.27 |
8.01 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
9.70 |
(19.25) |
|
|
OPERATING PROFIT |
% |
38.60 |
284.38 |
|
|
NET PROFIT |
% |
51.01 |
1,716.03 |
|
|
FIXED ASSETS |
% |
(36.57) |
13.70 |
|
|
TOTAL ASSETS |
% |
5.07 |
4.11 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 9.7%. Turnover has increased from THB
2,335,545,452.00 in 2012 to THB 2,561,984,812.00 in 2013. While net profit has
increased from THB 158,733,234.00 in 2012 to THB 239,704,737.00 in 2013. And
total assets has increased from THB 1,106,950,620.00 in 2012 to THB
1,163,113,110.00 in 2013.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
29.23 |
Deteriorated |
Industrial
Average |
154.41 |
|
Net Profit Margin |
9.36 |
Impressive |
Industrial
Average |
4.39 |
|
Return on Assets |
20.61 |
Impressive |
Industrial
Average |
9.01 |
|
Return on Equity |
65.30 |
Impressive |
Industrial
Average |
24.03 |
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 29.23%. 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 9.36%,
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
20.61%, 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 65.3%, 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 :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.43 |
Acceptable |
Industrial
Average |
1.94 |
|
Quick Ratio |
1.15 |
|
|
|
|
Cash Conversion Cycle |
34.77 |
|
|
|
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 1.43 times in 2013, increased from 1.07 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 1.15 times in 2013,
increased from 0.84 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 35 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
SATISFACTORY
LEVERAGE RATIO
|
Debt Ratio |
0.68 |
Impressive |
Industrial Average |
0.80 |
|
Debt to Equity Ratio |
2.17 |
Risky |
Industrial Average |
2.13 |
|
Times Interest Earned |
59.49 |
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 59.5 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 0.68 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 Uptrend
Times Interest Earned Stable
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
162.55 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
2.20 |
Satisfactory |
Industrial Average |
2.67 |
|
Inventory Conversion Period |
40.65 |
|
|
|
|
Inventory Turnover |
8.98 |
Impressive |
Industrial Average |
6.45 |
|
Receivables Conversion Period |
122.56 |
|
|
|
|
Receivables Turnover |
2.98 |
Satisfactory |
Industrial Average |
3.77 |
|
Payables Conversion Period |
128.44 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.98 and 2.99 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 46 days at the
end of 2012 to 41 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 7.88 times in year 2012 to 8.98 times
in year 2013.
The company's Total Asset Turnover is calculated as 2.2 times and 2.11
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.59.95 |
|
UK Pound |
1 |
Rs.102.78 |
|
Euro |
1 |
Rs.81.39 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
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.