MIRA
INFORM REPORT
|
Report Date : |
09.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
SINO-PACIFIC
TRADING [ |
|
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Registered Office : |
|
|
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|
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Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
28.10.1970 |
|
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Com. Reg. No.: |
0105513005572 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in
importing and distributing wide
range of local
and international brands
of food, food
seasonings, dairies, bakeries
and beverage products
including snacks, breads,
biscuit, seasoning sauces,
pasta as well
as confectionery such
as herb candy,
chocolate |
|
|
|
|
No. of Employees |
400 |
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 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
SINO-PACIFIC TRADING [THAILAND]
COMPANY LIMITED
SUMMARY
ADDRESS : 122/2-3 NONSEE
ROAD, CHONGNONSEE,
YANNAWA, BANGKOK
10120, THAILAND
TELEPHONE : [66]
2681-5081-96, 2681-3045
FAX : [66]
2681-5097-8
E-MAIL ADDRESS : sales@sino.co.th
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1970
REGISTRATION NO. : 0105513005572 [Former : 674/2513]
TAX ID NO. : 3101011340
CAPITAL REGISTERED : BHT.
160,000,000
CAPITAL PAID-UP : BHT.
160,000,000
SHAREHOLDER’S PROPORTION : THAI
:
99.69%
FOREIGN :
0.31%
FISCAL YEAR CLOSING
DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
EKACHAI SAVETSOMPHOB, THAI
MANAGING DIRECTOR
NO. OF STAFF : 400
LINES OF BUSINESS : FOODS
AND SEASONING PRODUCTS
IMPORTER &
DISTRIBUTOR
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 28,
1970 as a
private limited company
under the name
style SINO-PACIFIC TRADING [THAILAND]
COMPANY LIMITED by Thai
group, Savetsomphob family,
in order to
import and distribute
wide range of
foods and food
seasoning products to
local market. It
currently employs approximately
400 staff.
The
subject’s registered address
is 122/2-3 Nonsee
Road, Chongnonsee, Yannawa,
Bangkok 10120, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ekachai Savetsomphob |
|
Thai |
59 |
|
Mr. Savet Savetsomphob |
|
Thai |
32 |
|
Mr. Somphob Savetsomphob |
|
Thai |
29 |
AUTHORIZED
PERSON
Two
of the above
directors can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr.
Ekachai Savetsomphob is
the Managing Director.
He
is Thai nationality
with the age
of 59 years
old.
Mr.
Savet Savetsomphob is
the Deputy Managing
Director.
He
is Thai nationality
with the age
of 32 years
old.
Mr.
Somphob Savetsomphob is
the Assistant Managing
Director.
He
is Thai nationality
with the age
of 29 years
old.
Mr. Pablo
De Abadal is
the Commercial Manager.
He
is Spanish nationality.
Mr.
Pairat Pongbanglee is
the Sales Manager.
He
is Thai nationality.
BUSINESS OPERATION
The
subject is engaged in
importing and distributing
wide range of
local and international
brands of food,
food seasonings, dairies,
bakeries and beverage
products including snacks,
breads, biscuit, seasoning
sauces, pasta as
well as confectionery
such as herb
candy, chocolate and
etc. It consists of
more than 70
brands from all
around the world.
The products and
brands are as
follows:
·
Beverage
products : CAMPBELL’S,
EVIEN, POKKA, SPRING
VALLEY
JUICE,
TREE TOP, VOLVIC
and etc.
·
Chocolate
products : FERRERO,
ARCOR, DELFI, GUYLIAN,
HAITAI,
HAWAILAN
HOST, HERSHEY’S, LINDT, MORINAGA,
RITTER
SPORT, STEENLAND, VAN
HOUTEN,
·
Confectionery
products : ARCOR,
CHUPA CHUPS, FISHERMAN’S
FRIEND,
FOX’S,
GEEEF, MENTOS, HERSHEY’S,
PEZ, POLO,
RICOLA, ROCK
LOLLIPOP SMINT, STORCK,
SUGUS,
TUTTI
FRUTTI, WRIGLEY’S, YUPI
and etc.
·
Grocery
products :
AGNESI, ARCOR, BERTOLLI, CONFETTI,
FAMILIA,
GALLO,
HERSHEY’S, KIKKOMAN, LANGNESE,
LUNE DE
MIEL, MC CORMICK,
SABROSO, TULIP,
SMUCKER’S,
VAN HOUTEN, TABASCO,
NUTELLA,
CAMPBELL’S, FERRERO, CRESPO, S&B,
FAMILIA,
LEA &
PERRINS, MUTTI, NATURE’S
PATH,
SANITARIUM and
etc.
·
Snack & Biscuits : ARNOTT’S,
BAHLSEN, CALBEE, CAMEL
NUTS,
GLICO,
KAMBLY, HAITAI, KAVLI,
KETTLE, ROKA,
LOACKER,
LORENZ, NUT CANDY,
WALKERS,
TONG
GARDEN, PEPERIDGE FARM
and etc.
·
Juice
Products : SPRING
VALLEY JUICE
PURCHASE
80%
of the products
is imported from
United States of
America, Switzerland, United
Kingdom, Germany, Singapore,
Australia, Canada, Austria,
Indonesia, Japan, Vietnam,
Republic of China,
Korea, Philippines, New
Zealand, Italy, Malaysia,
Africa, Netherlands, Korea,
Hong Kong and
Taiwan, and the
remaining 20% is
purchased from local
suppliers.
MAJOR
SUPPLIERS
Ricola
AG : Switzerland
Hug
AG : Switzerland
Mc
Ilhenny Company : United
States of America
Cumberland
Packaging Corp. :
United States of
America
Minh
Thanh Export Ltd. : Vietnam
Pokka
Corporation [Singapore] Pte.
Ltd.: Singapore
Danone Imported Waters [Asia] Pte. Ltd. :
Thailand branch
etc.
SALES
[LOCAL]
100%
of the products
is sold locally by wholesale
to dealers and
end-users such as
hotel, restaurant, supermarket and etc. The subject currently has over
100 customers nationwide.
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 days.
Imports are by
L/C at sight
and T/T.
BANKING
Bangkok
Bank Public Co., Ltd.
[Head Office : 333 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
Bank
of Ayudhya Public
Co., Ltd.
[Head Office : 1222 Rama 3
Rd., Bangpongpang, Yannawa,
Bangkok 10120]
Thanachart
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
400 staff [office,
sales staff and
warehouse workers].
LOCATION
DETAILS
The
premise is owned
for administrative office
in a 4
storey building of
2 row shop
house at the
heading address. Premise
is located in
commercial/residential area.
There
are 5 branches
in provincial as
follows:
·
Phuket
Branch, 97/326 Suanlung
Chaofai Project 3,
Wirathongyok 6 Rd.,
T. Wichit,
A. Muang, Phuket 83000.
Tel. : [66] 76 356-034-6.
·
Chiangmai Branch, 230/3 Kaewnawarat Rd., T. Watkate, A. Muang, Chiangmai
50000. Tel. : [66] 53 241-908-9
·
Pattaya
Branch, 16/141 Moo
8, T. Nong-bualai, A. Banglamung, Pattaya
City, Chonburi 20150.
Tel. : [66] 38 223-935-7.
·
Samui Branch, 7/18
Robkhon Rd., Mae-nam,
Samui, Suratthani 84330.
Tel. : [66]
77 430-285
·
Hadyai
Branch, 117/16 Kanchanavanit Rd., T. Banpru, A. Hadyai,
Songkhla 90110.
Tel. : [66]
74 217-440.
COMMENT
Domestic consumption of imported products especially gourmet foods from
overseas remains strong. Numbers of the products are well
accepted by local consumers. Its experience and long term recognition in
Thailand’s market have enabled subject
to be the largest
importer and distributor
of groceries and beverages
products in Thailand.
Generally, the subject’s
business is very solid
and always profitable.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht. 500,000
divided into 1,000
shares of Bht.
500 each.
The
capital was increased
later as followings:
Bht. 35
million on July
12, 1993
Bht. 60
million on December
21, 1994
Bht. 80
million on October
4, 1995
Bht. 120
million on July
23, 1996
Bht. 150
million on October
12, 1997
Bht. 160
million on October
26, 2010
The latest
registered capital was
increased to Bht. 160
million, divided into
320,000 shares of
Bht. 500 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE :
[as at April
30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Savet Savetsomphob Nationality: Thai Address : 127/1 Rama 4 Road,
Chongnonsee, Yannawa, Bangkok 10120 |
134,535 |
42.04 |
|
Mr. Somphob Savetsomphob Nationality: Thai Address : 127/1 Rama 4 Road,
Chongnonsee, Yannawa, Bangkok 10120 |
67,009 |
20.94 |
|
Mr. Ekachai Savetsomphob Nationality: Thai Address : 127/1 Rama 4
Road, Chongnonsee, Yannawa, Bangkok 10120 |
20,100 |
6.28 |
|
Mrs. Ekajit Savetsomphob Nationality: Thai Address : 37 Rama
4 Road, Chongnonsee, Yannawa, Bangkok 10120 |
15,000 |
4.69 |
|
Ms. Ekarat Savetsomphob Nationality: Thai Address : 99/26 Moo 20,
Minburi, Bangkok |
15,000 |
4.69 |
|
Master Teeraparp Savetsomphob Nationality: Thai Address : 37/73
Moo 4, Bangkhuntien, Samaedam,
Bangkok |
15,000 |
4.69 |
|
Mr. Poltakorn Savetsomphob Nationality: Thai Address : 19 Sukhumvit
26 Road, Klongton,
Klongtoey, Bangkok |
15,000 |
4.69 |
|
|
|
|
|
Mrs. Varaporn Savetsomphob Nationality: Thai Address : 127/1 Rama
4 Road, Chongnonsee, Yannawa, Bangkok 10120 |
11,794 |
3.68 |
|
Others |
26,562 |
8.30 |
Total Shareholders : 58
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
57 |
319,000 |
99.69 |
|
Foreign |
1 |
1,000 |
0.31 |
|
Total |
58 |
320,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Boonsin Thavorn
No. 1059
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 |
52,347,306.56 |
37,251,415.73 |
101,577,365.81 |
|
Short-term Investment |
158,740,494.12 |
156,196,863.37 |
153,501,846.31 |
|
Trade Accounts & Other
Receivable |
3,828,333,648.41 |
3,398,091,460.98 |
3,172,682,059.96 |
|
Inventories |
1,521,248,165.52 |
1,285,970,216.00 |
844,130,349.02 |
|
Other Current Assets
|
20,641,751.45 |
12,442,603.30 |
8,279,906.08 |
|
|
|
|
|
|
Total Current Assets
|
5,581,311,366.06 |
4,889,952,559.38 |
4,280,171,527.18 |
|
Long-term Investment |
71,516,090.00 |
50,488,190.00 |
36,718,190.00 |
|
Other Long-term Investment |
21,590,994.28 |
13,050,173.27 |
6,579,953.27 |
|
Fixed Assets |
672,275,054.29 |
639,602,289.19 |
521,632,599.09 |
|
Other Non-current Assets |
18,836,051.69 |
17,314,252.06 |
13,875,566.08 |
|
Total Assets |
6,365,529,556.32 |
5,610,407,463.90 |
4,859,977,835.62 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial
Institution |
477,791,841.34 |
504,914,427.99 |
437,862,849.03 |
|
Trade Accounts &
Other Payable |
3,422,047,988.99 |
2,952,788,061.91 |
2,484,374,763.53 |
|
Current Portion of Hire-purchase Payable |
759,624.90 |
1,633,176.00 |
1,633,176.00 |
|
Accrued Income Tax |
33,050,800.54 |
39,576,021.24 |
125,381,505.24 |
|
Obligation for Employee
Benefits |
3,337,442.20 |
1,312,529.15 |
861,616.24 |
|
Other Current Liabilities |
58,429,412.01 |
33,953,184.20 |
37,427,501.93 |
|
|
|
|
|
|
Total Current Liabilities |
3,995,417,109.98 |
3,534,177,400.49 |
3,087,541,411.97 |
|
|
|
|
|
|
Hire-purchase Payable |
- |
645,698.94 |
2,164,948.98 |
|
Employee Benefits Obligation
|
51,937,650.95 |
47,357,200.62 |
39,361,826.93 |
|
Total Liabilities |
4,047,354,760.93 |
3,582,180,300.05 |
3,129,068,187.88 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 500
par value authorized, issued
and fully paid share
capital 320,000 shares
|
160,000,000.00 |
160,000,000.00 |
160,000,000.00 |
|
|
|
|
|
|
Capital Paid |
160,000,000.00 |
160,000,000.00 |
160,000,000.00 |
|
Retained Earning Appropriated for
Statutory Reserve |
16,000,000.00 |
16,000,000.00 |
16,000,000.00 |
|
Unappropriated |
2,142,174,795.39 |
1,852,227,163.85 |
1,553,909,647.74 |
|
Total Shareholders' Equity |
2,318,174,795.39 |
2,028,227,163.85 |
1,729,909,647.74 |
|
Total Liabilities & Shareholders' Equity |
6,365,529,556.32 |
5,610,407,463.90 |
4,858,977,835.62 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
11,960,942,143.84 |
11,248,923,976.26 |
9,225,486,064.68 |
|
Other Income |
825,073,715.32 |
828,448,185.48 |
587,626,494.65 |
|
Total Revenues |
12,786,015,859.16 |
12,077,372,161.73 |
9,813,112,559.33 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
8,704,727,944.44 |
8,365,770,155.39 |
6,872,079,667.72 |
|
Selling Expenses |
3,170,220,751.90 |
2,844,318,425.32 |
1,972,439,355.04 |
|
Administrative Expenses |
353,393,059.97 |
301,635,327.38 |
278,777,714.01 |
|
Other Expenses |
46,147,018.28 |
- |
23,356,363.18 |
|
Total Expenses |
12,274,488,774.59 |
11,511,723,908.09 |
9,146,653,099.95 |
|
|
|
|
|
|
Profit before Financial
Cost & Income Tax |
511,527,084.57 |
565,648,253.64 |
666,459,459.38 |
|
Financial Cost |
[64,494,348.54] |
[69,206,645.47] |
[42,762,046.77] |
|
|
|
|
|
|
Profit before Income
Tax |
447,032,736.03 |
496,441,608.17 |
623,697,412.61 |
|
Income Tax |
[93,085,104.49] |
[118,124,092.06] |
[192,388,607.19] |
|
Net Profit / [Loss] |
353,947,631.54 |
378,317,516.11 |
431,308,805.42 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.40 |
1.38 |
1.39 |
|
QUICK RATIO |
TIMES |
1.01 |
1.02 |
1.11 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
17.79 |
17.59 |
17.69 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.88 |
2.01 |
1.90 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
63.79 |
56.11 |
44.83 |
|
INVENTORY TURNOVER |
TIMES |
5.72 |
6.51 |
8.14 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
116.83 |
110.26 |
125.52 |
|
RECEIVABLES TURNOVER |
TIMES |
3.12 |
3.31 |
2.91 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
143.49 |
128.83 |
131.95 |
|
CASH CONVERSION CYCLE |
DAYS |
37.12 |
37.54 |
38.41 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
72.78 |
74.37 |
74.49 |
|
SELLING & ADMINISTRATION |
% |
29.46 |
27.97 |
24.40 |
|
INTEREST |
% |
0.54 |
0.62 |
0.46 |
|
GROSS PROFIT MARGIN |
% |
34.12 |
33.00 |
31.88 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.28 |
5.03 |
7.22 |
|
NET PROFIT MARGIN |
% |
2.96 |
3.36 |
4.68 |
|
RETURN ON EQUITY |
% |
15.27 |
18.65 |
24.93 |
|
RETURN ON ASSET |
% |
5.56 |
6.74 |
8.88 |
|
EARNING PER SHARE |
BAHT |
1,106.09 |
1,182.24 |
1,347.84 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.64 |
0.64 |
0.64 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.75 |
1.77 |
1.81 |
|
TIME INTEREST EARNED |
TIMES |
7.93 |
8.17 |
15.59 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
6.33 |
21.93 |
|
|
OPERATING PROFIT |
% |
(9.57) |
(15.13) |
|
|
NET PROFIT |
% |
(6.44) |
(12.29) |
|
|
FIXED ASSETS |
% |
5.11 |
22.62 |
|
|
TOTAL ASSETS |
% |
13.46 |
15.46 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 6.33%. Turnover has increased from THB
11,248,923,976.26 in 2012 to THB 11,960,942,143.84 in 2013. While net profit
has decreased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
34.12 |
Impressive |
Industrial
Average |
3.14 |
|
Net Profit Margin |
2.96 |
Impressive |
Industrial
Average |
2.43 |
|
Return on Assets |
5.56 |
Satisfactory |
Industrial
Average |
5.56 |
|
Return on Equity |
15.27 |
Impressive |
Industrial
Average |
13.52 |
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 34.12%. 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 2.96%, higher figure when compared with those of
its average competitors in the same industry, indicated that business was an
efficient operator in a dominant
position within its industry.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. When compared with the
industry average, it was lower, the
company's figure is 5.56%.
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 15.27%, 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 :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.40 |
Satisfactory |
Industrial
Average |
1.51 |
|
Quick Ratio |
1.01 |
|
|
|
|
Cash Conversion Cycle |
37.12 |
|
|
|
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 1.4 times in 2013, increased from 1.38 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 1.01 times in 2013,
decreased from 1.02 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 38 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.64 |
Impressive |
Industrial
Average |
0.84 |
|
Debt to Equity Ratio |
1.75 |
Satisfactory |
Industrial
Average |
2.56 |
|
Times Interest Earned |
7.93 |
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 7.94 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 0.64 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 :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
17.79 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.88 |
Acceptable |
Industrial
Average |
3.00 |
|
Inventory Conversion Period |
63.79 |
|
|
|
|
Inventory Turnover |
5.72 |
Deteriorated |
Industrial
Average |
17.22 |
|
Receivables Conversion Period |
116.83 |
|
|
|
|
Receivables Turnover |
3.12 |
Acceptable |
Industrial
Average |
4.95 |
|
Payables Conversion Period |
143.49 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.12 and
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 56 days at the
end of 2012 to 64 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 6.51 times in year 2012 to 5.72 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.88 times and 2.01
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.59.80 |
|
|
1 |
Rs.102.42 |
|
Euro |
1 |
Rs.81.32 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NIS |
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.