MIRA INFORM REPORT
|
Report No. : |
320081 |
|
Report Date : |
29.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
IWATANI CORPORATION
[THAILAND] LTD. |
|
|
|
|
Formerly Known As : |
IWATANI INTERNATIONAL CORPORATION
[THAILAND] LTD. |
|
|
|
|
Registered Office : |
Room 2903, 29th Floor, United Center Building, 323 Silom Road, Silom, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
25.01.1990 |
|
|
|
|
Com. Reg. No.: |
0105533010563 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged
in international trading
business by importing,
distributing and exporting
wide range of
products, including industrial
machinery, semiconductors, metals,
ceramics, chemicals, industrial
gases, LPG pressure
vessel, heat resistance
paints for motorcycles, automotive
accessories, and materials
for ceramics and
industrial parts, as
well as cooking
equipment, such as
portable gas cooking
stoves, cooking torch,
gas match. |
|
|
|
|
No of Employees : |
40 |
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 : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
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
IWATANI
CORPORATION [THAILAND] LTD.
[FORMER
: IWATANI INTERNATIONAL
CORPORATION [THAILAND] LTD.]
SUMMARY
BUSINESS
ADDRESS : ROOM
2903, 29th FLOOR, UNITED CENTER BUILDING,
323 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2231-1764 -8
FAX :
[66] 2231-1769
E-MAIL
ADDRESS : info@iwatani.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1990
REGISTRATION
NO. : 0105533010563 [Former : 1054/2533]
TAX
ID NO. : 3101788396
CAPITAL REGISTERED : BHT. 300,000,000
CAPITAL PAID-UP : BHT.
300,000,000
SHAREHOLDER’S PROPORTION : FOREIGN
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
HIROYUKI KURAMOTO, JAPANESE
MANAGING DIRECTOR
NO.
OF STAFF : 40
LINES
OF BUSINESS : INTERNATIONAL TRADING
COMPANY
IMPORTER, DISTRIBUTOR,
AND EXPORTER
CORPORATE PROFILE
|
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on January 25, 1990
as a private
limited company under
the registered name
IWATANI INTERNATIONAL CORPORATION
[THAILAND] LTD., initially
by a joint investment
between Thai and Japanese groups,
in order to engage in
international trading business.
On September
4, 2008 the
subject’s name was
changed to IWATANI
CORPORATION [THAILAND] LTD.
It currently employs
approximately 40 staff.
Presently,
the subject is
a subsidiary of
Iwatani Corporation, which
is holding around
99.86% of subject’s
total shares.
The
subject’s registered address
is Room 2903,
29th Floor, United
Center Bldg.,
323 Silom Rd., Silom, Bangrak, Bangkok 10500, and
this is the
subject’s current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Eiichi Wada |
|
Japanese |
59 |
|
Mr. Tomohiko Takehana |
|
Japanese |
49 |
|
Mr. Hiroyuki Kuramoto |
|
Japanese |
52 |
|
Mr. Kenji Motoori |
|
Japanese |
49 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Hiroyuki Kuramoto is
the Managing Director.
He is Japanese
nationality with the
age of 52
years old.
Mr. Masahiko Yasuda is
the Sales Manager
of Machinery Division.
He is Japanese
nationality.
Mr. Zatoshi Nakayama is
the Sales Manager
of Metal Division.
He is Japanese
nationality.
Mr. Hiroshi Tanaka is
the Sales Manager
of Chemical &
Ceramic Division.
He is Japanese
nationality.
Mr. Mazaki Hirakushi is
the Sales Manager
of Semiconductor Division.
He is Japanese
nationality.
BUSINESS OPERATIONS
The subject is
engaged in international
trading business by
importing, distributing and
exporting wide range
of products, including
industrial machinery, semiconductors, metals,
ceramics, chemicals, industrial
gases, LPG pressure
vessel, heat resistance
paints for motorcycles,
automotive accessories, and
materials for ceramics
and industrial parts,
as well as
cooking equipment, such
as portable gas
cooking stoves, cooking
torch, gas match.
PURCHASE
Its products are
purchased from suppliers
both in domestic
and overseas in
Japan, Singapore, Republic of
China, Taiwan, India, Germany,
France, United Kingdom
and United States
of America.
MAJOR SUPPLIERS
Iwatani
Corporation : Japan
Iwatani
Industrial Gas Pte.
Ltd. : Singapore
Guangzhou
Iwatani Trading Co.,
Ltd. : Republic
of China
Dandong
Iwatani Toyo Gas
Meter Co., Ltd. : Republic
of China
SALES
The products are
sold locally to wholesalers
and end-users.
EXPORT [COUNTRIES]
The products are
exported to Japan,
Singapore, Malaysia, Republic
of China, Taiwan,
Hong Kong, India,
Indonesia, Australia, India,
Brunei, Vietnam and
Cambodia.
MAJOR CUSTOMER
S.K.I. Ceramic Co.,
Ltd. : Thailand
PARENT COMPANY
Iwatani Corporation
Address: 4-8 Homashi
3 Chome, Chuo-ku,
Osaka, Japan
SUBSIDIARY AND
AFFILIATED COMPANY
Iwatani Gas and
Machinery [Thailand] Ltd.
Business Type :
Maintenance service of
industrial machinery
ASSOCIATED COMPANY
Bangkok AI-TOA Co.,
Ltd.
Business Type :
Manufacturer and distributor
of metal coating
products
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 to the
past two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BUSINESS TRANSACTION
The products
are sold both
by cash and
credit, with the maximum
credit given at 30–
60 days.
There is no
problem on its
account receivable.
BANKING
The Siam Commercial
Bank Public Co., Ltd.
[Head Office :
9 Ratchadapisek Rd.,
Jompol, Jatujak, Bangkok
10900]
Bangkok Bank Public
Co., Ltd.
[Head Office :
333 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
Bank of Tokyo - Mitsubishi UFJ
Ltd.
[Bangkok Branch :
54 North Sathorn
Rd., Silom, Bangrak,
Bangkok 10500]
EMPLOYMENT
The
subject employs approximately
40 staff [office and
sales staff].
LOCATION DETAILS
The
premise is rented
for administrative office
on 29th floor
in a multi-storey building at
the heading address.
Premise is located
in a prime
commercial area.
COMMENT
The subject is the leading company in trading of various industrial
goods including raw materials for industries and finished goods for wholesale
and end-users. Raw materials for various industries such as chemical,
steel tools and machinery have been
declining in accordance
with slow demand from
industrial sector.
FINANCIAL INFORMATION
The
capital was registered at
Bht. 6,000,000 divided into
6,000 shares of Bht. 1,000
each with fully
paid.
The
capital was increased
later as follows:
Bht. 10,000,000
on September 20,
2004
Bht. 20,000,000
on May 27,
2008
Bht. 300,000,000
on December 21,
2009
The
latest registered capital
was increased to
Bht. 300,000,000 divided
into 300,000 shares
of Bht. 1,000
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE
[as
at March 21, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Iwatani Corporation Nationality: Japanese Address : 4-8 Homashi
3 Chome, Chuo-ku,
Osaka, Japan |
299,600 |
99.86 |
|
Iwatani Corporation [M] Sdn. Bhd. Nationality: Malaysian Address : Kuala
Lumpur, Malaysia |
200 |
0.07 |
|
Iwatani Industrial Gas
Pte. Ltd. Nationality: Singaporean Address : 13
Pioneer Sector 3, Julong
Industrial Estate, Singapore |
200 |
0.07 |
Total Shareholders : 3
Share Structure [as
at March 21,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
3 |
300,000 |
100.00 |
|
Total |
3 |
300,000 |
100.00 |
NAME
OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO
Mr. Sakda Kaothanthong No.
4628
BALANCE
SHEET [BAHT]
The latest financial figures published
as at December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
182,343,979 |
130,256,233 |
144,501,698 |
|
Trade Accounts Receivable
|
517,022,275 |
566,220,424 |
330,681,427 |
|
Inventories |
40,069,631 |
67,236,863 |
72,486,808 |
|
Refundable Value Added
Tax |
11,124,246 |
2,089,844 |
16,662,595 |
|
Advance Payment for Inventories |
572,595 |
44,280,069 |
310,990 |
|
Other Current Assets
|
5,113,926 |
7,374,100 |
6,106,035 |
|
|
|
|
|
|
Total Current Assets
|
756,246,652 |
817,457,533 |
570,749,553 |
|
Investment in Associated Company |
3,920,000 |
3,920,000 |
3,920,000 |
|
Investment in Subsidiary Company |
62,968,125 |
37,718,125 |
37,718,125 |
|
Other Long-term Investment |
6,168,000 |
6,419,300 |
6,419,300 |
|
Equipment |
4,059,838 |
4,852,342 |
5,918,400 |
|
Intangible Assets |
1,963,942 |
2,247,751 |
1,555,866 |
|
Other Non-current Assets |
4,276,011 |
5,351,234 |
5,221,899 |
|
Total Assets |
839,602,568 |
877,966,285 |
631,503,143 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts Payable
|
428,156,409 |
497,326,570 |
339,947,455 |
|
Other Payable |
43,243,841 |
27,665,035 |
29,722,693 |
|
Advance Income from
Goods |
15,609,036 |
49,811,364 |
74,009 |
|
Accrued Income Tax |
8,889,550 |
8,766,339 |
13,727,753 |
|
Other Current Liabilities |
2,935,492 |
15,462,658 |
2,211,027 |
|
|
|
|
|
|
Total Current Liabilities |
498,834,328 |
599,031,966 |
385,682,937 |
|
Estimated Employee Benefit |
5,179,800 |
5,134,600 |
4,955,800 |
|
Total Liabilities |
504,014,128 |
604,166,566 |
390,638,737 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value Authorized &
issued share capital
300,000 shares |
300,000,000 |
300,000,000 |
300,000,000 |
|
|
|
|
|
|
Capital Paid |
202,000,000 |
202,000,000 |
90,000,000 |
|
Retained Earnings: Appropriated for Statutory Reserve |
13,922,466 |
10,033,701 |
7,188,204 |
|
Unappropriated |
119,665,974 |
61,766,018 |
143,676,202 |
|
Total Shareholders' Equity |
335,588,440 |
273,799,719 |
240,864,406 |
|
Total Liabilities &
Shareholders' Equity |
839,602,568 |
877,966,285 |
631,503,143 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
2,552,243,108 |
2,724,589,916 |
2,398,126,281 |
|
Gain on Exchange Rate |
7,657,192 |
981,601 |
- |
|
Other Income |
15,599,853 |
18,244,683 |
8,799,761 |
|
Total Revenues |
2,575,500,153 |
2,743,816,200 |
2,406,926,042 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,301,911,430 |
2,494,419,710 |
2,188,123,358 |
|
Selling Expenses |
121,005,410 |
116,961,466 |
93,431,527 |
|
Administrative Expenses |
31,556,992 |
36,593,529 |
40,446,074 |
|
Loss on Exchange
Rate |
- |
- |
1,825,267 |
|
Total Expenses |
2,454,473,832 |
2,647,974,705 |
2,323,826,226 |
|
|
|
|
|
|
Profit / [Loss] before Income
Tax |
121,026,321 |
95,841,495 |
83,099,816 |
|
Financial Costs |
[21,059,600] |
[24,066,182] |
[26,189,884] |
|
|
|
|
|
|
Net Profit / [Loss] |
99,966,721 |
71,775,313 |
56,909,932 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.52 |
1.36 |
1.48 |
|
QUICK RATIO |
TIMES |
1.40 |
1.16 |
1.23 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
628.66 |
561.50 |
405.20 |
|
TOTAL ASSETS TURNOVER |
TIMES |
3.04 |
3.10 |
3.80 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
6.35 |
9.84 |
12.09 |
|
INVENTORY TURNOVER |
TIMES |
57.45 |
37.10 |
30.19 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
73.94 |
75.85 |
50.33 |
|
RECEIVABLES TURNOVER |
TIMES |
4.94 |
4.81 |
7.25 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
67.89 |
72.77 |
56.71 |
|
CASH CONVERSION CYCLE |
DAYS |
12.40 |
12.92 |
5.72 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
90.19 |
91.55 |
91.24 |
|
SELLING & ADMINISTRATION |
% |
5.98 |
5.64 |
5.58 |
|
INTEREST |
% |
0.83 |
0.88 |
1.09 |
|
GROSS PROFIT MARGIN |
% |
10.72 |
9.15 |
9.12 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.74 |
3.52 |
3.47 |
|
NET PROFIT MARGIN |
% |
3.92 |
2.63 |
2.37 |
|
RETURN ON EQUITY |
% |
29.79 |
26.21 |
23.63 |
|
RETURN ON ASSET |
% |
11.91 |
8.18 |
9.01 |
|
EARNING PER SHARE |
BAHT |
494.88 |
355.32 |
632.33 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.60 |
0.69 |
0.62 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.50 |
2.21 |
1.62 |
|
TIME INTEREST EARNED |
TIMES |
5.75 |
3.98 |
3.17 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(6.33) |
13.61 |
|
|
OPERATING PROFIT |
% |
26.28 |
15.33 |
|
|
NET PROFIT |
% |
39.28 |
26.12 |
|
|
FIXED ASSETS |
% |
(16.33) |
(18.01) |
|
|
TOTAL ASSETS |
% |
(4.37) |
39.03 |
|
ANNUAL
GROWTH : ACCEPTABLE
An annual sales growth is -6.33%. Turnover has decreased from THB
2,724,589,916.00 in 2012 to THB 2,552,243,108.00 in 2013. While net profit has
increased from THB 71,775,313.00 in 2012 to THB 99,966,721.00 in 2013. And
total assets has decreased from THB 877,966,285.00 in 2012 to THB
839,602,568.00 in 2013.
PROFITABILITY
: IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
10.72 |
Acceptable |
Industrial
Average |
15.52 |
|
Net Profit Margin |
3.92 |
Impressive |
Industrial
Average |
2.87 |
|
Return on Assets |
11.91 |
Impressive |
Industrial
Average |
6.61 |
|
Return on Equity |
29.79 |
Impressive |
Industrial
Average |
20.95 |
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 10.72%. 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 3.92%,
higher figure when 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. Return on Assets ratio is
11.91%, 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 29.79%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profit in a dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY
: IMPRESSIVE
LIQUIDITY
RATIO
|
Current Ratio |
1.52 |
Impressive |
Industrial
Average |
1.46 |
|
Quick Ratio |
1.40 |
|
|
|
|
Cash Conversion Cycle |
12.40 |
|
|
|
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 1.52 times in 2013, increased from 1.36 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 1.4 times in 2013,
increased from 1.16 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 13 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE
: IMPRESSIVE
LEVERAGE
RATIO
|
Debt Ratio |
0.60 |
Impressive |
Industrial
Average |
0.66 |
|
Debt to Equity Ratio |
1.50 |
Acceptable |
Industrial
Average |
1.97 |
|
Times Interest Earned |
5.75 |
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 5.75 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 0.6 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
: EXCELLENT
ACTIVITY
RATIO
|
Fixed Assets Turnover |
628.66 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
3.04 |
Impressive |
Industrial
Average |
2.30 |
|
Inventory Conversion Period |
6.35 |
|
|
|
|
Inventory Turnover |
57.45 |
Impressive |
Industrial
Average |
7.25 |
|
Receivables Conversion Period |
73.94 |
|
|
|
|
Receivables Turnover |
4.94 |
Impressive |
Industrial
Average |
3.97 |
|
Payables Conversion Period |
67.89 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.94 and 4.81 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 decreased from 10 days at the
end of 2012 to 6 days at the end of 2013. This represents a positive trend. And
Inventory turnover has increased from 37.1 times in year 2012 to 57.45 times in
year 2013.
The company's Total Asset Turnover is calculated as 3.04 times and 3.1
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 Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.33 |
|
|
1 |
Rs.96.51 |
|
Euro |
1 |
Rs.68.92 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
DPT |
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.