MIRA INFORM REPORT
|
Report Date : |
10.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
ASIAN HONDA MOTOR CO., LTD |
|
|
|
|
Registered Office : |
14 Sarasin
Building, Surasak Road, Silom, Bangrak,
Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
12.10.1964 |
|
|
|
|
Com. Reg. No.: |
0105507002389 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Distributor, Exporter
and Service Provider of Motorcycles, Automobiles, Engines and Spare Parts. |
|
|
|
|
No. of Employees |
500 |
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 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately 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
ASIAN
HONDA MOTOR CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 14
SARASIN BUILDING, SURASAK
ROAD,
SILOM, BANGRAK,
BANGKOK 10500, THAILAND
TELEPHONE : [66] 2236-0256
FAX
: [66] 2635-1050
E-MAIL
ADDRESS : contact@hondacsr.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1964
REGISTRATION
NO. : 0105507002389
TAX
ID NO. : 3101066050
CAPITAL REGISTERED : BHT.
442,700,000
CAPITAL PAID-UP : BHT.
442,700,000
SHAREHOLDER’S PROPORTION : JAPANESE
: 100%
FISCAL YEAR CLOSING DATE : MARCH 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. NORIAKI ABE,
JAPANESE
CHIEF EXECUTIVE
OFFICER & PRESIDENT
NO.
OF STAFF : 500
LINES
OF BUSINESS : MOTORCYCLES, AUTOMOBILES,
ENGINES AND
SPARE PARTS
DISTRIBUTOR, EXPORTER
AND SERVICE
PROVIDER
CORPORATE
PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on October 12,
1964 as a
private limited company
under the registered
name ASIAN HONDA
MOTOR CO., LTD.
by Japanese groups.
Its business objective
is to distribute “HONDA”
automobiles, motorcycles, engines
and spare parts,
as well as
other related services
in Thailand, Asian
and Oceania regions. It
currently employs approximate
500 staff.
The
subject is also
the regional headquarter
of Honda in
Asian and Oceania
countries. It is a
wholly owned subsidiary
of Honda Motor Co., Ltd., in
Japan.
The
subject’s registered address
is 14 Sarasin Building,
Surasak Rd., Silom,
Bangrak, Bangkok 10500, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Isao Ito |
[+] |
Japanese |
60 |
|
Mr. Toshihiko Miyaki |
[+] |
Japanese |
58 |
|
Mr. Pitak Pruthisarikorn |
[+] |
Thai |
51 |
|
Mr. Noriaki Abe |
[x] |
Japanese |
51 |
|
Mr. Yoshiyuki Matsumoto |
[x] |
Japanese |
- |
|
Mr. Masayuki Igarashi |
[+] |
Japanese |
50 |
|
Mr. Yoshikado Nakao |
[+] |
Japanese |
49 |
|
Mr. Kazuhisa Hirota |
[-] |
Japanese |
50 |
AUTHORIZED
PERSON
One of the
mentioned directors [x]
can sign or
the mentioned director
[-] can jointly
sign with anyone
of the directors
[+] on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Noriaki Abe is
the Chief Executive
officer and President.
He is Japanese
nationality with the
age of 51
years old.
Mr. Isao Ito is
the Vice President.
He is Japanese
nationality with the
age of 60
years old.
Ms. Aroonsri
Thongveraprasert is the
General Manager [Account &
Finance]
She is Thai
nationality.
Mr. Hiroyuki Zuzuki is
the General Manager
[Customer Services].
He is Japanese
nationality.
BUSINESS
OPERATIONS
The subject is engaged in distributing and exporting of “HONDA”
automobiles, motorcycles, engines
and spare parts,
as well as
purchasing, procurement and
servicing of parts
for Asian and
Oceania countries. Range
of business’s activities
are as follows:
·
Distributing and
exporting of general
purpose engines, power
product engine and
spare parts
·
Exporting of
motorcycles, automobiles, power
products and components
·
Conducting strategic
planning for production
and purchasing control of
Honda products in
the Asia and Oceania
region
·
Supporting strategic
planning for production,
export, distribution and sale
of Honda products
in the Asia
and Oceania region
·
Marketing and
selling of power
products in Thailand
·
Managing, distributing
and selling of
parts, including the
increased procurement of
local parts and
improved logistical management
of parts supply
serving all countries
in the region.
PURCHASE
100% of purchasing
is from local
suppliers.
MAJOR
SUPPLIERS
Thai
Honda Manufacturing Co.,
Ltd. : Thailand
Honda
Automobile [Thailand] Co., Ltd. : Thailand
SALES
The products are
sold and serviced
to both local
and overseas, mainly
in the Asia
and Oceania region, as
well as U.S.A.
and Europe, with
more than 80 countries.
MAJOR CUSTOMERS
Honda Philippines Inc. : Philippines
Honda Vietnam Co., Ltd. : Vietnam
Honda Atlas Cars [Pakistan] Ltd. : Pakistan
etc.
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
according for the
past two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
Bank
of Tokyo-Mitsubishi UFJ
Ltd.
EMPLOYMENT
The
subject currently employs
approximate 500 staff.
LOCATION
DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in a prime
commercial area.
Branches:
-
99 Moo 9,
Bangna-Trad Rd., K.M. 36, T. Bangwua,
A. Bangpakong,
Chachoengsao
-
44/1-6
Moo 7, Romklao
Rd.,, Minburi, Minburi,
Bangkok
-
49 Moo 9
Rojana Rd., T. Thanu,
A. U-Thai, Ayutthaya
-
209 Moo 1,
Romklao Rd., Klongsong
Tonnoon, Ladkrabang, Bangkok
-
2/1 Moo 5,, Tharaeng, Bangkhen,
Bangkok.
-
55/5
Moo 5, T. Bangsamak,
A. Bangpakong, Chachoengsao
NOTE
Refer
to your given
name “ASIAN HONDA
TRADING CO., LTD.”,
please be informed
that the correct
name is “ASIAN
HONDA MOTOR CO.,
LTD.”.
COMMENT
The
company was established
in order to distribute
and export of motorcycles,
automobile and power
products. It took
responsibility for
coordinating Honda’s activities
in 12 countries
and supporting Honda operations
in several additional
countries within the region.
As
Thailand is the
Regional Headquarter of
Honda in Asian
& Oceania, it
has rapidly grown
from significantly increasing
demand and is
considered a solid business.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 10,000,000
divided into 10,000
shares of Bht.
1,000 each with
fully paid.
The
capital was increased
later as follows:
Bht. 100,000,000
on March
17, 1981
Bht. 387,200,000 on March
16, 1987
Bht. 407,900,000
on March
11, 1988
Bht. 442,700,000
on April
20, 1992
The
latest registered capital
was increased to Bht. 442,700,000 divided into
442,700 shares of
Bht. 1,000 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE :
[as at
March 20, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Honda Motor Co.,
Ltd. Nationality: Japanese Address : 1-1-2 Chome
Minami-Aoyama Minato-ku, Tokyo, Japan |
442,698 |
100.00 |
|
Mr. Noriaki Abe Nationality: Japanese Address : 14
Surasak Rd., Silom,
Bangrak, Bangkok |
1 |
- |
|
Mr. Kazuhisa Hirota Nationality: Japanese Address : 14
Surasak Rd., Silom,
Bangrak, Bangkok |
1 |
- |
Total Shareholders : 3
Share Structure [as
at March 20,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign-Japanese |
3 |
442,700 |
100.00 |
|
Total |
3 |
442,700 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Charoen Phusamritlert No.
4068
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 |
11,574,304,805 |
14,812,167,017 |
10,672,021,771 |
|
Trade Accounts Receivable
|
8,238,904,028 |
7,361,329,050 |
8,961,232,967 |
|
Short-term Investment |
- |
- |
1,599,278,885 |
|
Other Receivable - Related Company |
207,625,106 |
230,832,625 |
- |
|
Other Receivable |
323,435,743 |
136,505,818 |
- |
|
Short-term Lending to Related
Company |
1,000,000,000 |
212,000,000 |
320,000,000 |
|
Current Portion of
Long-term Lending Related Company
|
52,023,334 |
49,182,510 |
- |
|
Inventories |
3,473,929,941 |
3,986,109,382 |
3,582,579,489 |
|
Deferred Value Added Tax |
378,112,926 |
347,954,555 |
399,285,439 |
|
Deferred Refundable from Export
|
359,192,455 |
356,965,054 |
342,351,615 |
|
Deferred Dividend |
28,887,690 |
202,390,539 |
328,785,436 |
|
Account Receivable under Forward Contract |
611,845,021 |
129,627,725 |
196,086,338 |
|
Other Current Assets
|
- |
- |
434,665,554 |
|
|
|
|
|
|
Total Current Assets
|
26,248,261,049 |
27,825,064,275 |
26,836,287,494 |
|
Investment in Subsidiaries |
698,650,000 |
1,047,375,000 |
1,148,176,250 |
|
Investment in Associated
Company |
11,184,900,794 |
3,963,602,544 |
3,502,058,199 |
|
Investment in Related Company |
712,400,000 |
712,400,000 |
712,400,000 |
|
Other Long-term Investment
|
2,112,614,200 |
385,124,450 |
364,964,137 |
|
Long-term Lending to Related
Company |
156,261,900 |
209,017,686 |
- |
|
Real Estate for Investment |
2,144,376,612 |
2,092,179,007 |
2,125,010,370 |
|
Fixed Assets |
1,492,688,053 |
1,620,362,277 |
984,117,626 |
|
Intangible Assets |
153,393,428 |
184,156,573 |
208,710,915 |
|
Other Non-current Assets |
11,838,628 |
18,151,556 |
19,093,961 |
|
Total Assets |
44,915,384,664 |
38,057,433,368 |
35,900,818,952 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts Payable
|
10,965,880,830 |
10,207,532,443 |
9,457,525,741 |
|
Other Payable Related
Company |
32,388,465 |
112,153,916 |
101,779,164 |
|
Other Payable |
242,524,230 |
206,024,020 |
162,612,389 |
|
Accrued Income Tax |
757,282,105 |
1,451,421,103 |
900,230,840 |
|
Account Payable under
Forward Contract |
- |
- |
2,776,992 |
|
Accrued Expenses |
741,074,307 |
784,563,017 |
742,102,496 |
|
Short-term Estimated Liabilities
for Employee Benefit |
1,930,518 |
1,575,695 |
1,044,205 |
|
Other Current Liabilities |
117,218,434 |
66,241,096 |
82,645,577 |
|
|
|
|
|
|
Total Current Liabilities |
12,858,298,889 |
12,829,511,290 |
11,450,717,404 |
|
Guarantee from Customer |
147,238,000 |
154,942,500 |
152,174,000 |
|
Long-term Estimated Liabilities for Employee Benefit |
76,665,952 |
82,243,983 |
71,239,691 |
|
Deferred Income Tax
Liabilities |
108,922,497 |
17,141,313 |
55,039,447 |
|
Total Liabilities |
13,191,125,338 |
13,083,839,086 |
11,729,170,542 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 442,700 shares |
442,700,000 |
442,700,000 |
442,700,000 |
|
|
|
|
|
|
Capital Paid |
442,700,000 |
442,700,000 |
442,700,000 |
|
Retained Earnings: Appropriated for Statutory Reserve |
44,270,000 |
44,270,000 |
44,270,000 |
|
Unappropriated |
31,237,289,326 |
24,486,624,282 |
23,684,678,410 |
|
Total Shareholders' Equity |
31,724,259,326 |
24,973,594,282 |
24,171,648,410 |
|
Total Liabilities &
Shareholders' Equity |
44,915,384,664 |
38,057,433,368 |
35,900,818,952 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
97,462,725,828 |
78,202,227,319 |
102,647,978,519 |
|
Interest Income |
326,730,361 |
363,728,639 |
165,943,226 |
|
Dividend Income |
1,156,950,723 |
1,882,490,401 |
2,499,670,182 |
|
Rental Income |
153,299,440 |
144,447,000 |
140,910,000 |
|
Gain on Exchange Rate |
1,430,888,636 |
271,092,115 |
1,491,363,923 |
|
Other Income |
757,555,270 |
1,393,490,277 |
829,039,884 |
|
Total Revenues |
101,288,150,258 |
82,257,475,751 |
107,774,905,734 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
86,966,118,282 |
67,095,976,204 |
92,726,687,219 |
|
Selling Expenses |
3,708,551,532 |
3,475,784,245 |
4,642,228,035 |
|
Administrative Expenses |
2,111,264,829 |
2,276,697,000 |
2,169,157,382 |
|
Total Expenses |
92,785,934,643 |
72,848,457,449 |
99,538,072,636 |
|
Profit before Income
Tax |
8,502,215,615 |
9,409,018,302 |
8,236,833,098 |
|
Income Tax |
[1,751,550,571] |
[2,444,688,430] |
[2,075,003,284] |
|
|
|
|
|
|
Net Profit / [Loss] |
6,750,665,044 |
6,964,329,872 |
6,161,829,814 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.04 |
2.17 |
2.34 |
|
QUICK RATIO |
TIMES |
1.66 |
1.78 |
1.88 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
66.39 |
49.74 |
107.16 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.21 |
2.12 |
2.94 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
14.58 |
21.68 |
14.10 |
|
INVENTORY TURNOVER |
TIMES |
25.03 |
16.83 |
25.88 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
30.35 |
33.34 |
31.02 |
|
RECEIVABLES TURNOVER |
TIMES |
12.03 |
10.95 |
11.77 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
46.02 |
55.53 |
37.23 |
|
CASH CONVERSION CYCLE |
DAYS |
(1.10) |
(0.51) |
7.89 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
87.76 |
83.25 |
87.93 |
|
SELLING & ADMINISTRATION |
% |
5.87 |
7.14 |
6.46 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
14.45 |
18.81 |
14.27 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
8.58 |
11.67 |
7.81 |
|
NET PROFIT MARGIN |
% |
6.81 |
8.64 |
5.84 |
|
RETURN ON EQUITY |
% |
21.28 |
27.89 |
25.49 |
|
RETURN ON ASSET |
% |
15.03 |
18.30 |
17.16 |
|
EARNING PER SHARE |
BAHT |
15,248.85 |
15,731.49 |
13,918.75 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.29 |
0.34 |
0.33 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.42 |
0.52 |
0.49 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
22.96 |
(23.58) |
|
|
OPERATING PROFIT |
% |
(9.64) |
14.23 |
|
|
NET PROFIT |
% |
(3.07) |
13.02 |
|
|
FIXED ASSETS |
% |
(7.88) |
64.65 |
|
|
TOTAL ASSETS |
% |
18.02 |
6.01 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth of 22.96%. Turnover has increased from THB
80,592,893,359.00 in 2012 to THB 99,099,706,352.00 in 2013. While net profit
has decreased from THB
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
14.45 |
Impressive |
Industrial
Average |
8.12 |
|
Net Profit Margin |
6.81 |
Impressive |
Industrial
Average |
1.34 |
|
Return on Assets |
15.03 |
Impressive |
Industrial Average |
4.90 |
|
Return on Equity |
21.28 |
Impressive |
Industrial
Average |
19.12 |
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. This good performance in 14.45%. 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. Which the high ratio in 6.81%
compared with those of its average competitors in the same industry, indicated
that business was an efficient operators 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. Which the high ratio in
15.03%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profits 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. Which the high ratio
in 21.28%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profits 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 |
2.04 |
Impressive |
Industrial
Average |
1.45 |
|
Quick Ratio |
1.66 |
|
|
|
|
Cash Conversion Cycle |
(1.10) |
|
|
|
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 2.04 times in 2013, decrease from 2.17 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 1.66 times in 2013,
decrease from 1.78 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 -2 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.29 |
Impressive |
Industrial
Average |
0.98 |
|
Debt to Equity Ratio |
0.42 |
Impressive |
Industrial
Average |
3.88 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.29 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 |
66.39 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
2.21 |
Deteriorated |
Industrial
Average |
4.64 |
|
Inventory Conversion Period |
14.58 |
|
|
|
|
Inventory Turnover |
25.03 |
Impressive |
Industrial
Average |
15.00 |
|
Receivables Conversion Period |
30.35 |
|
|
|
|
Receivables Turnover |
12.03 |
Impressive |
Industrial
Average |
11.82 |
|
Payables Conversion Period |
46.02 |
|
|
|
The company's Account Receivable Ratio is calculated as 12.03 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 decreased from 22 days at the
end of 2012 to 15 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 16.83 times in year 2012 to 25.03
times in year 2013.
The company's Total Asset Turnover is calculated as 2.21 times and 2.12
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.60.05 |
|
|
1 |
Rs.101.65 |
|
Euro |
1 |
Rs.83.07 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
PDT |
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.