MIRA
INFORM REPORT
|
Report Date : |
08.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
ABLE INDUSTRIES
CO., LTD. |
|
|
|
|
Registered Office : |
48/1-2 Moo
1, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
20.09.1984 |
|
|
|
|
Com. Reg. No.: |
0105527034260 |
|
|
|
|
Legal Form : |
private limited company |
|
|
|
|
Line of Business : |
Subject is engaged in
manufacturing and distributing wide
range of steel
pipes, with various sizes
ND 150 - ND 4000 mm., such
as underground steel
pipes, aboveground steel
pipes, sleeve pipes,
electric resistance welded
pipes, spiral welded
steel pipes, bend
rolled steel pipes,
bare pipes, advertising
pillar, pontoon and
steel fittings for
waterworks |
|
|
|
|
No. of Employees : |
260 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but correct |
|
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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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
ABLE
INDUSTRIES CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 48/1-2 MOO
1, PHAHOLYOTHIN ROAD,
T. KLONGNUENG, A. KLONGLUANG,
PATHUMTHANI
12120, THAILAND
TELEPHONE : [66] 2516-2489,
2516-8801
FAX :
[66] 2516-2490,
2516-9323
E-MAIL
ADDRESS : marketing@able-industries.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1984
REGISTRATION
NO. : 0105527034260
TAX
ID NO. : 3101349696
CAPITAL REGISTERED : BHT. 125,000,000
CAPITAL PAID-UP : BHT.
125,000,000
SHAREHOLDER’S PROPORTION : THAI :
52.98%
FOREIGN :
47.02%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. TSANG KEUNG
CHEUNG, CANADIAN
MANAGING DIRECTOR
NO.
OF STAFF : 260
LINES
OF BUSINESS : STEEL
PIPES AND STEEL
FITTINGS
MANUFACTURER AND
DISTRIBUTOR
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 September 20, 1984
as a private
limited company under
the registered name ABLE
INDUSTRIES CO., LTD., by Thai and foreign groups,
with the business
objective to manufacture
and distribute wide
range of steel
pipes and steel
fittings to domestic market.
It currently employs
approximately 260 staff.
The
subject’s registered address
is 48/1-2 Moo 1,
Phaholyothin Road, T. Klongnueng, A. Klongluang, Pathumthani
12120, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Tsang Keung Cheung |
[x] |
Canadian |
67 |
|
Mr. U Ye Myint |
|
Myanmese |
63 |
|
Mr. Wat Ruangmanamongkol |
[x] |
Thai |
85 |
|
Mr. Nipon Leelasithorn |
[x] |
Thai |
53 |
|
Ms. Chantanee Kongsinsap |
[x] |
Thai |
67 |
|
Mr. Suchart Tantimekbut |
[-] |
Thai |
63 |
|
Ms. Surasri Songsermsujarit |
[-] |
Thai |
58 |
AUTHORIZED PERSON
Any two of
the mentioned directors
[x] can jointly
sign or one
of the mentioned
directors [x] can
jointly sign with
anyone of the
mentioned directors [-]
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Tsang Keung Cheung
is the Managing
Director.
He is Canadian
nationality with the
age of 67
years old.
Ms. Surasri Songsermsujarit is
the Administration Manager.
She is Thai
nationality with the
age of 58
years old.
BUSINESS OPERATIONS
The subject’s
core business is
engaged in manufacturing and
distributing wide range
of steel pipes,
with various sizes ND 150 - ND 4000 mm., such as underground steel
pipes, aboveground steel
pipes, sleeve pipes,
electric resistance welded
pipes, spiral welded
steel pipes, bend
rolled steel pipes,
bare pipes, advertising
pillar, pontoon and
steel fittings for
waterworks.
PRODUCTION CAPACITY
200,000 metric
tons per annum
BRAND NAME
“ABLE”
PURCHASE
Raw
materials mainly steel
coils are purchased
from suppliers both
domestic and overseas, mainly
in Republic of
China, Taiwan, Japan,
U.S.A., and the
countries in Europe.
SALES
100% of the
products is sold
locally to wholesalers,
contractors and end-users
both private company
and government sectors.
MAJOR CUSTOMERS
Provincial Waterworks Authority
Metropolitan Waterworks Authority
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.
Imports are by
T/T on negotiated
terms.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject currently employs
approximately 260 staff.
LOCATION
DETAILS
The
premise is owned for
administrative office, factory
and warehouse on
85,086 square meters
plot of land
at the heading
address. Premise is
located in industrial
area.
Branch
office is located
at 41/4-5 Moo
3, Chiangmai-Hod Road,
T. Harngdong,
A. Harngdong, Chiangmai
50230.
COMMENT
The
subject had strong
business in the
past several years.
However, economy slowdown
in accordance with
slow domestic industrial
growth has affected
on its current
business.
Decline
consumption in domestic
market has caused
to decrease subject’s
sales, as well
as, the impact
of slow spending
and delay of industrial
expansion would pressure
subject’s performance this
year.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 100,000,000 divided into
1,000,000 shares of
Bht. 100 each
with fully paid.
On December 29,
2003, the capital
was divided into
20,000,000 shares of
Bht. 5 each with
fully paid.
On
July 12, 2004,
the registered capital
was increased to
Bht. 125,000,000 divided
into 25,000,000 shares
of Bht. 5
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Chantanee Kongsinsap Nationality: Thai Address : 48/1-2
Moo 1, Phahoyothin Road, T. Klongnueng, A. Klongluang, Pathumthani
|
11,125,000 |
44.50 |
|
Mr. Tsang Keung Cheung Nationality: Canadian Address : 48/1-2
Moo 1, Phahoyothin
Road, T.
Klongnueng, A. Klongluang, Pathumthani
|
10,755,000 |
43.02 |
|
Mr. Suchart Tantimekbut Nationality: Thai Address : 352
Bamrungmuang Road, Banbart,
Pomprabsattrupai, Bangkok |
1,820,000 |
7.28 |
|
Mrs. Lee Kah Tsang Nationality: Singaporean Address : No. 5
SS22A/4 Damansara Jaya,
47400
Petaling Jaya, Selangor,
Malaysia |
500,000 |
2.00 |
|
Mrs. Teo Lee
Keng Nationality: Malaysian Address : No. 3
SS22A/4 Damansara Jaya,
47400
Petaling Jaya, Selangor,
Malaysia |
500,000 |
2.00 |
|
Mr. Wat Ruangmanamongkol Nationality: Thai Address : 610/82
Songwad Road, Chakrawad,
Samphantawong, Bangkok |
200,000 |
0.80 |
|
Mr. Sheehan Saeteo Nationality: Thai Address : 383/85
Chakrapadipong, Road,
Klongmahanark,
Pomprabsattrupai, Bangkok |
100,000 |
0.40 |
Total Shareholders : 7
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
13,245,000 |
52.98 |
|
Foreign |
3 |
11,755,000 |
47.02 |
|
Total |
7 |
25,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Jarunee Nuammae No.
5596
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
|
17,573,581 |
8,252,958 |
8,832,030 |
|
Trade Account & Other
Receivable |
150,800,366 |
374,874,715 |
319,240,008 |
|
Loans to Person
& Related Company |
2,900,000 |
8,619,356 |
1,300,000 |
|
Inventories |
381,748,775 |
196,956,498 |
427,772,311 |
|
Other Current Assets
|
58,997,430 |
25,857,369 |
32,450,394 |
|
|
|
|
|
|
Total Current Assets
|
612,020,152 |
614,560,896 |
789,594,743 |
|
Cash at Bank
pledged as a Collateral |
4,015,527 |
5,887,573 |
25,058,357 |
|
Advance Payment to
Other Person |
1,500,000 |
1,500,000 |
1,500,000 |
|
Account Receivable -
Machinery |
- |
40,467,427 |
61,991,621 |
|
Loans to Company & Other Person |
8,500,000 |
6,500,000 |
6,500,000 |
|
Investment in Subsidiary |
12,499,950 |
12,499,950 |
12,499,950 |
|
Investment in Associated Company |
5,006,900 |
5,006,900 |
5,006,900 |
|
Real Estate for
Investment |
31,123,379 |
31,760,306 |
- |
|
Fixed Assets |
332,612,641 |
358,689,659 |
365,752,844 |
|
Intangible Assets |
2,065,516 |
2,305,385 |
18 |
|
Non-operating Building &
Machinery |
4 |
4 |
4 |
|
Total Assets |
1,009,344,069 |
1,079,178,100 |
1,267,904,437 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from
Financial Institution |
4,507,709 |
284,732,640 |
281,066,773 |
|
Trust Receipt Payable |
348,759,005 |
379,389,978 |
501,793,047 |
|
Trade Accounts & Other Payable |
205,978,858 |
213,012,744 |
197,114,073 |
|
Short-term Loan from
Related Company |
- |
4,100,000 |
4,200,000 |
|
Current Portion of
Long-term Loan |
7,500,000 |
- |
88,759,235 |
|
Accrued Income Tax |
5,923,472 |
25,759,835 |
8,790,429 |
|
Other Current Liabilities Advance Income
from Goods |
79,710,046 |
53,556,399 |
178,051,604 |
|
Others |
2,151,338 |
1,519,563 |
734,113 |
|
|
|
|
|
|
Total Current Liabilities |
645,530,428 |
962,071,159 |
1,260,509,274 |
|
Long-term Loan from
Bank |
192,500,000 |
- |
- |
|
Employee Benefit Obligation
|
13,890,819 |
12,249,652 |
14,092,184 |
|
Total Liabilities |
851,921,247 |
974,320,811 |
1,274,601,458 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 5 par
value authorized, issued
and fully paid
share capital 25,000,000
shares |
125,000,000 |
125,000,000 |
125,000,000 |
|
|
|
|
|
|
Capital Paid |
125,000,000 |
125,000,000 |
125,000,000 |
|
Retained Earning - Unappropriated
[Deficit] |
23,422,822 |
[20,142,711] |
[131,697,021] |
|
Total Shareholders' Equity |
148,422,822 |
104,857,289 |
[6,697,021] |
|
Total Liabilities & Shareholders' Equity |
1,009,344,069 |
1,079,178,100 |
1,267,904,437 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
1,859,355,601 |
2,159,587,408 |
2,428,724,116 |
|
Sales of Water |
4,925,380 |
4,430,416 |
4,236,797 |
|
Construction Income |
- |
- |
9,331,320 |
|
Compensation from Insurance |
- |
91,698,190 |
- |
|
Gain on Exchange
Rate |
- |
2,362,098 |
- |
|
Other Income |
5,042,727 |
11,544,330 |
9,556,870 |
|
Total Revenues |
1,869,323,708 |
2,269,622,442 |
2,451,849,103 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,494,997,305 |
1,824,999,965 |
1,986,110,161 |
|
Cost of Water |
7,805,390 |
7,371,804 |
8,031,237 |
|
Cost of Construction |
- |
- |
7,615,275 |
|
Selling Expenses |
217,994,726 |
192,080,917 |
261,788,781 |
|
Administrative Expenses |
47,583,896 |
50,009,436 |
48,342,597 |
|
Loss on Exchange
Rate |
5,561,104 |
- |
1,529,539 |
|
Total Expenses |
1,773,942,421 |
2,074,462,122 |
2,313,417,590 |
|
|
|
|
|
|
Profit / Loss] before Financial
Cost & Income Tax |
95,381287 |
195,160,320 |
138,431,513 |
|
Financial Cost |
[38,466,055] |
[50,499,501] |
[63,805,136] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax
|
56,915,232 |
144,660,819 |
74,626,377 |
|
Income Tax |
[13,349,699] |
[33,106,509] |
[26,310,642] |
|
Net Profit / [Loss] |
43,565,533 |
111,554,310 |
48,315,735 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.94 |
0.64 |
0.63 |
|
QUICK RATIO |
TIMES |
0.26 |
0.41 |
0.26 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.60 |
6.03 |
6.68 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.85 |
2.01 |
1.93 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
92.72 |
39.23 |
78.00 |
|
INVENTORY TURNOVER |
TIMES |
3.94 |
9.30 |
4.68 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
29.52 |
63.23 |
47.71 |
|
RECEIVABLES TURNOVER |
TIMES |
12.36 |
5.77 |
7.65 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
50.03 |
42.43 |
35.94 |
|
CASH CONVERSION CYCLE |
DAYS |
72.22 |
60.03 |
89.77 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
80.61 |
84.67 |
81.96 |
|
SELLING & ADMINISTRATION |
% |
14.25 |
11.19 |
12.70 |
|
INTEREST |
% |
2.06 |
2.33 |
2.61 |
|
GROSS PROFIT MARGIN |
% |
19.66 |
20.21 |
18.43 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.12 |
9.02 |
5.67 |
|
NET PROFIT MARGIN |
% |
2.34 |
5.15 |
1.98 |
|
RETURN ON EQUITY |
% |
29.35 |
106.39 |
- |
|
RETURN ON ASSET |
% |
4.32 |
10.34 |
3.81 |
|
EARNING PER SHARE |
BAHT |
1.74 |
4.46 |
1.93 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.85 |
0.90 |
1.01 |
|
DEBT TO EQUITY RATIO |
TIMES |
5.80 |
9.29 |
(190.32) |
|
TIME INTEREST EARNED |
TIMES |
2.48 |
3.86 |
2.17 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(13.85) |
(11.39) |
|
|
OPERATING PROFIT |
% |
(51.13) |
40.98 |
|
|
NET PROFIT |
% |
(60.95) |
130.89 |
|
|
FIXED ASSETS |
% |
(7.27) |
(1.93) |
|
|
TOTAL ASSETS |
% |
(6.47) |
(14.88) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -13.85%. Turnover has decreased from THB
2,164,017,824.00 in 2012 to THB 1,864,280,981.00 in 2013. While net profit has
decreased from THB 111,554,310.00 in 2012 to THB 43,565,533.00 in 2013. And
total assets has decreased from THB 1,079,178,100.00 in 2012 to THB
1,009,344,069.00 in 2013.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
19.66 |
Impressive |
Industrial
Average |
17.61 |
|
Net Profit Margin |
2.34 |
Impressive |
Industrial
Average |
0.95 |
|
Return on Assets |
4.32 |
Impressive |
Industrial
Average |
1.35 |
|
Return on Equity |
29.35 |
Impressive |
Industrial
Average |
3.87 |
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 19.66%. 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 2.34%, 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
4.32%, 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 29.35%, 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 : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.94 |
Risky |
Industrial
Average |
1.26 |
|
Quick Ratio |
0.26 |
|
|
|
|
Cash Conversion Cycle |
72.22 |
|
|
|
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 0.94 times in 2013, increased from 0.64 times, then the company may have
problems meeting its short-term obligations. 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 0.26 times in 2013,
decreased from 0.41 times, then the company has not enough current assets that
presumably can be quickly converted to cash for pay financial obligations.
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 73 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.85 |
Acceptable |
Industrial
Average |
0.81 |
|
Debt to Equity Ratio |
5.80 |
Risky |
Industrial
Average |
2.15 |
|
Times Interest Earned |
2.48 |
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 2.48 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 0.85 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 |
5.60 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.85 |
Impressive |
Industrial Average |
1.73 |
|
Inventory Conversion Period |
92.72 |
|
|
|
|
Inventory Turnover |
3.94 |
Satisfactory |
Industrial Average |
4.83 |
|
Receivables Conversion Period |
29.52 |
|
|
|
|
Receivables Turnover |
12.36 |
Impressive |
Industrial Average |
9.42 |
|
Payables Conversion Period |
50.03 |
|
|
|
The company's Account Receivable Ratio is calculated as 12.36 and 5.77
in 2013 and 2012 respectively. This ratio measures the efficiency of the
company in managing its trade debtors to generate revenue. A lower ratio may
indicate over extension and collection problems. Conversely, a higher ratio may
indicate an overtly stringent policy. In this case, the company's A/R ratio in
2013 increased from 2012. This would suggest the company had good performance
in the management of its debt collections.
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has increased from 39 days at the
end of 2012 to 93 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 9.3 times in year 2012 to 3.94 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.85 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.60.43 |
|
|
1 |
Rs.98.64 |
|
Euro |
1 |
Rs.78.19 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.