MIRA INFORM REPORT
|
Report No. : |
320303 |
|
Report Date : |
02.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
KORACH INDUSTRY COMPANY LIMITED |
|
|
|
|
Registered Office : |
701 Maitreechit
Road, Pomprab, Pomprabsattrupai, Bangkok 10100 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
13.12.1990 |
|
|
|
|
Com. Reg. No.: |
0105533144501 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer and Distributor of White Sugar and Bio-Energy Production. |
|
|
|
|
No. of Employees : |
700 |
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 – 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 has had a strong economy due in part to industrial and agriculture
exports - mostly electronics, agricultural commodities, automobiles and parts,
and processed foods. Thailand 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 both 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. Government
approved flood mitigation projects, worth $11.7 billion, were started in 2012
to prevent a repeat. Thai growth slowed in 2013 and has remained low since, as
the country faced political uncertainty and a coup in May 2014. The interim
government is implementing a special $11 billion short-term stimulus package
and has approved a budget of more than $80 billion to aid an economic rebound.
|
Source
: CIA |
Company
Name
KORACH INDUSTRY
COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 701
MAITREECHIT ROAD, POMPRAB,
POMPRABSATTRUPAI, BANGKOK
10100,
THAILAND
TELEPHONE : [66] 2226-5481-7
FAX :
[66] 2226-5489
E-MAIL ADDRESS : bangkok@korachindustry.co.th
pimai@korachindustry.co.th
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1990
REGISTRATION NO. : 0105533144501
TAX ID NO. : 3101923995
CAPITAL REGISTERED
: BHT.
700,000,000
CAPITAL PAID-UP
: BHT.
700,000,000
SHAREHOLDER’S PROPORTION : THAI :
70%
BRITISH :
30%
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. PRASERT SATHIENTHIRAKUL, THAI
PRESIDENT
NO. OF
STAFF : 700
LINES OF
BUSINESS : WHITE
SUGAR AND BIO-ENERGY
PRODUCTION
MANUFACTURER AND
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
December 13, 1990
as a private
limited company under the
registered name style
KORACH INDUSTRY COMPANY
LIMITED by Thai and
British groups. Its business
objective is to
manufacture white sugar
products, as well
as generate electricity
from bio-energy. It
currently employs
approximately 700 staff.
The subject
is a member
of KI group
of companies, the
leading sugar manufacturers
in the North
Eastern region of
Thailand.
It achieved
the quality standard ISO 9000 : 2000, environmental
standard ISO : 14001 certificate,
as well as
GMP, HALAL and
TISI 18001 certification.
The subject’s
registered address is 701
Maitreechit Rd., Pomprab,
Pomprabsattrupai,
Bangkok 10100,
and this is the subject’s
current operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Prasert Sathienthirakul |
|
Thai |
70 |
|
Mr. Yongyut Sathienthirakul |
|
Thai |
66 |
|
Mr. Mongkol Sathienthirakul |
|
Thai |
59 |
AUTHORIZED
PERSON
Any
two of the
above directors can jointly
sign on behalf
of the subject
with
company’s
affixed.
MANAGEMENT
Mr. Prasert Sathienthirakul is
the President.
He
is Thai nationality
with the age
of 70 years
old.
Mr. Yongyut Sathienthirakul is
the Managing Director.
He
is Thai nationality
with the age of
66
years old.
Mr. Sanoh Ongloy
is the Production
Manager.
He
is Thai nationality.
BUSINESS
OPERATIONS
The
subject’s main business
is engaged in manufacturing and
distributing white sugars
and refined white
sugars, under its own
brand “KI”, with
the production capacity of
28,000 tons per
day, as well
as distributing by-products,
such as molasses
and bagasses to
various industries.
The
subject is also
generated electricity made
from bio-substances or
bagasses, with the
total production capacity
of 42 MW per
hour. Electricity generated is
supplied to the sugar production
process and sold to the Electricity
Generating Authority of
Thailand.
PURCHASE
100%
of raw materials,
mainly sugar cane and
chemical are purchased
from local supplier.
SALES
100%
of the products
is sold locally
to wholesalers, manufacturers
and end-users.
RELATED
AND AFFILIATED COMPANIES
The
KI Group consists
of :
Surin Sugar
Company Limited
Business
Type : Sugar
refinery
Surin Electric
Company Limited
Business
Type : Generator of
electricity from bio-substances or
bagasses
KI Ethanol
Company Limited
Business
Type : Manufacturer
and distributor of
99.5% pure ethanol
KI Biogas
Company Limited
Business
Type : Manufacturer
and distributor of
biogas and electricity
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
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.
BANKING
Bangkok Bank
Public Co., Ltd.
EMPLOYMENT
The subject
employs approximately 700
staff.
LOCATION
DETAILS
The premise
is owned for
administrative office at the heading
address. Premise is
located in commercial/residential area.
Factory I:
111 Moo 18,
T. Nongrawieng, A.
Pimai, Nakornratchasima 30110.
Factory II: 11/1 Moo
18, T. Nongrawieng,
A. Pimai, Nakornratchasima 30110.
COMMENT
Subject produces
sugar for domestic
consumption which demand
remains strong. Despite slow
consumption in export markets
in the previous
year, the subject
still maintains a
solid business.
FINANCIAL
INFORMATION
The capital
was registered at
Bht. 400,000,000 divided
into 4,000,000 shares of
Bht. 100 each
with fully paid.
The capital
was increased later
as follows:
Bht.
500,000,000 on February
2, 1993
Bht.
550,000,000 on September
20, 1999
Bht.
700,000,000 on July
19, 2005
The latest
registered capital was
increased to Bht. 700 million,
divided into 7,000,000 shares
of Bht. 100 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at
April 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Vicker Security
Co., Ltd. Nationality: British Address
: 11 Cuddel
Street, Central, Hong
Kong |
2,100,000 |
30.00 |
|
Mr. Prasert Sathienthirakul Nationality: Thai Address
: 701 Maitreechit
Rd., Pomprab, Pomprabsattrupai, Bangkok |
1,835,000 |
26.21 |
|
Mr. Mongkol Sathienthirakul Nationality: Thai Address
: 74/2 Sukhumvit
31 Rd., |
1,470,000 |
21.00 |
|
Mr. Yongyut Sathienthirakul Nationality: Thai Address
: 111 Moo
18, Nongrawiang, Pimai,
Nakornratchasima |
1,359,900 |
19.43 |
|
Mr. Bovorn Sathienthirakul Nationality: Thai Address
: 701 Maitreechit
Rd., Pomprab,
Pomprabsattrupai, Bangkok |
82,500 |
1.18 |
|
Master
Varis Sathienthirakul Nationality: Thai Address
: 701 Maitreechit
Rd., Pomprab, Pomprabsattrupai, Bangkok |
55,000 |
0.78 |
|
Mr. Wuth Sathienthirakul Nationality: Thai Address
: 6 Ramkhamhaeng 4
Rd., Suanluang, Bangkok |
48,800 |
0.70 |
|
Mr. Phat Sathienthirakul Nationality: Thai Address
: 36/17 Ramkhamhaeng 43/1
Rd., Wangthonglang, Bangkok |
48,800 |
0.70 |
Total Shareholders
: 8
Share Structure
[as at April
30, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
4,900,000 |
70.00 |
|
Foreign - British |
1 |
2,100,000 |
30.00 |
|
Total |
8 |
7,000,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mrs. Supreeya Saengudomlert
No. 0811
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 |
128,805,835.98 |
200,794,419.44 |
305,346,017.65 |
|
Short-term Investment |
118,985,233.77 |
200,467,286.08 |
- |
|
Trade
Accounts & Notes Receivable
|
91,676,849.76 |
41,103,264.63 |
112,647,581.67 |
|
Account Receivable- Agriculturist |
578,523,548.98 |
664,560,769.27 |
542,400,534.15 |
|
Account Receivable-Related Company |
668,120,719.79 |
522,955,241.70 |
559,325,559.44 |
|
Account Receivable Compensation Sugar |
- |
- |
29,994,820.69 |
|
Inventories |
1,180,122,241.74 |
948,446,838.06 |
1,285,166,026.06 |
|
Material & Other |
29,778,063.24 |
42,261,439.63 |
37,201,137.99 |
|
Short-term Loan to Related Company |
64,000,000.00 |
44,000,000.00 |
44,000,000.00 |
|
Short-term Loan to Others |
7,723,086.48 |
12,866,746.42 |
11,887,818.86 |
|
Other
Current Assets |
|
|
|
|
Advance Payment |
49,154,596.23 |
53,265,073.74 |
14,361,251.69 |
|
Other Current Assets |
11,161,700.77 |
6,952,203.49 |
10,080,631.51 |
|
Total Current
Assets |
2,928,051,876.74 |
2,737,673,282.46 |
2,952,411,379.71 |
|
Cash
at Bank pledged
as a Collateral |
1,050,386.30 |
1,027,996.54 |
1,014,899.01 |
|
Receivable Farmer-Long term |
18,347,723.63 |
18,767,474.00 |
16,287,740.36 |
|
Investment in Related Company |
652,989,095.67 |
652,989,095.67 |
652,989,095.67 |
|
Long-term Investment |
35,235,000.00 |
35,505,000.00 |
7,353,990.00 |
|
Fixed Assets |
1,119,435,976.11 |
1,037,085,956.36 |
1,001,500,032.60 |
|
Intangible Assets |
10,344,402.33 |
11,904,028.25 |
- |
|
Other Assets |
12,159,019.05 |
7,326,305.89 |
21,860,227.26 |
|
Total Assets
|
4,777,613,479.83 |
4,502,279,139.17 |
4,653,417,364.61 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts Payable |
139,528,642.86 |
146,574,492.04 |
268,448,255.65 |
|
Account Payable-Related Company |
2,615,208.94 |
2,920,320.00 |
56,864,032.50 |
|
Account Payable-Sugar |
329,118,692.85 |
438,000,890.30 |
477,127,312.12 |
|
Notes Payable -Farmer |
58,673,074.00 |
326,611,380.00 |
329,365,599.34 |
|
Current
Portion of Long-term Loan |
8,697,316.02 |
3,180,514.95 |
218,116,564.75 |
|
Other
Current Liabilities |
|
|
|
|
Account Payable - Office the Cane and
Sugar Fund |
54,395,121.27 |
39,758,976.57 |
67,466,323.32 |
|
Accrued Income Tax |
63,455,466.67 |
120,138,991.67 |
311,240,854.03 |
|
Advance Revenues Received
|
17,636,865.00 |
13,111,889.00 |
40,936,683.81 |
|
Accrued Expenses |
117,522,162.76 |
110,103,819.79 |
222,960,540.40 |
|
Accrued Employee Benefits |
1,556,935.56 |
1,660,794.50 |
- |
|
Other Current Liabilities |
28,187,324.79 |
14,970,615.07 |
17,393,067.64 |
|
Total
Current Liabilities |
821,386,810.72 |
1,217,032,683.89 |
2,009,919,233.56 |
|
|
|
|
|
|
Long-term Loan, Net |
32,923,072.62 |
13,197,917.80 |
231,378,432.75 |
|
Total Liabilities |
854,309,883.34 |
1,230,230,601.69 |
2,241,297,666.31 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
Share
capital : Baht 100 value
Authorized & issued
share
capital 7,000,000 shares |
700,000,000.00 |
700,000,000.00 |
700,000,000.00 |
|
Capital
Paid |
700,000,000.00 |
700,000,000.00 |
700,000,000.00 |
|
Surplus
on Revaluation of
Assets |
630,000.00 |
900,000.00 |
[3,251,010.00] |
|
Retained
Earning
Appropriated for statutory reserve |
15,864,027.07 |
15,864,027.07 |
15,864,027.07 |
|
Unappropriated |
3,206,809,569.42 |
2,555,284,510.41 |
1,699,506,681.23 |
|
Total Shareholders' Equity |
3,923,303,596.49 |
3,272,048,537.48 |
2,412,119,698.30 |
|
Total Liabilities
& Shareholders' Equity |
4,777,613,479.83 |
4,502,279,139.17 |
4,653,417,364.61 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales
Income |
6,217,921,575.35 |
7,287,874,156.61 |
1,453,124,754.92 |
|
Sales
of by- products |
499,054,851.83 |
305,417,578.31 |
41,121,555.92 |
|
Sales
Electric Current |
217,239,508.85 |
185,077,238.00 |
2,411,807.80 |
|
Other Sales Income |
522,229,304.78 |
568,514,543.66 |
60,311,227.60 |
|
Interest Income |
66,611,575.69 |
59,489,391.26 |
11,920,382.43 |
|
Project Administrative Income |
19,248,000.00 |
14,595,000.00 |
3,540,000.00 |
|
Gain on Sales of Assets |
2,563,028.00 |
633,451.94 |
630,835.12 |
|
Refundable Doubtful Account |
405,854.33 |
772,226.46 |
53,894.50 |
|
Dividend Income |
805,070.00 |
1,069,070.00 |
- |
|
Doubtful Account Reversal |
5,366,426.17 |
21,256,215.66 |
4,654,660.00 |
|
Other Income |
19,884,824.13 |
15,583,623.55 |
368,454.88 |
|
Total Revenues
|
7,571,330,019.13 |
8,460,282,495.45 |
1,578,137,573.17 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost
of Goods Sold
|
5,770,848,082.14 |
6,333,904,142.54 |
1,021,904,326.93 |
|
Selling
Expenses |
731,250,730.12 |
763,344,426.27 |
214,529,113.10 |
|
Administrative Expenses |
225,103,457.62 |
215,482,796.69 |
80,707,166.36 |
|
Bad Debt & Doubtful Account |
1,708,524.13 |
1,940,125.90 |
16,644,934.24 |
|
Other Expenses |
3,735,780.93 |
7,836,688.14 |
- |
|
Total
Expenses |
6,732,646,574.94 |
7,322,508,179.54 |
1,333,785,540.63 |
|
Profit / [Loss] Before
Finance Cost &
Income Tax |
838,683,444.19 |
1,137,774,315.91 |
244,352,032.54 |
|
Finance Cost |
[25,157,784.84] |
[30,171,709.33] |
[8,008,438.13] |
|
Profit / [Loss] Before Income Tax |
813,525,659.35 |
1,107,602,606.58 |
236,343,594.41 |
|
Income
Tax |
[162,000,600.34] |
[251,824,777.40] |
[76,176,547.11] |
|
Net Profit / [Loss] |
651,525,059.01 |
855,777,829.18 |
160,167,047.30 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY
RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
3.56 |
2.25 |
1.47 |
|
QUICK RATIO |
TIMES |
1.93 |
1.34 |
0.77 |
|
|
|
|
|
|
|
ACTIVITY
RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
6.66 |
8.05 |
1.55 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.56 |
1.85 |
0.33 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
76.52 |
57.09 |
472.32 |
|
INVENTORY TURNOVER |
TIMES |
4.77 |
6.39 |
0.77 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
4.49 |
1.80 |
26.41 |
|
RECEIVABLES TURNOVER |
TIMES |
81.33 |
203.07 |
13.82 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
8.83 |
8.45 |
95.88 |
|
CASH CONVERSION CYCLE |
DAYS |
72.19 |
50.44 |
402.84 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
77.39 |
75.88 |
65.63 |
|
SELLING & ADMINISTRATION |
% |
12.85 |
11.75 |
20.03 |
|
INTEREST |
% |
0.34 |
0.36 |
0.51 |
|
GROSS PROFIT MARGIN |
% |
24.15 |
25.48 |
35.73 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
11.25 |
13.63 |
15.69 |
|
NET PROFIT MARGIN |
% |
8.74 |
10.25 |
10.29 |
|
RETURN ON EQUITY |
% |
16.61 |
26.15 |
6.64 |
|
RETURN ON ASSET |
% |
13.64 |
19.01 |
3.44 |
|
EARNING PER SHARE |
BAHT |
93.08 |
122.25 |
22.88 |
|
|
|
|
|
|
|
LEVERAGE
RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.18 |
0.27 |
0.48 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.22 |
0.38 |
0.93 |
|
TIME INTEREST EARNED |
TIMES |
33.34 |
37.71 |
30.51 |
|
|
|
|
|
|
|
ANNUAL
GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(10.67) |
436.10 |
|
|
OPERATING PROFIT |
% |
(26.29) |
365.63 |
|
|
NET PROFIT |
% |
(23.87) |
434.30 |
|
|
FIXED ASSETS |
% |
7.94 |
3.55 |
|
|
TOTAL ASSETS |
% |
6.12 |
(3.25) |
|
ANNUAL
GROWTH: ACCEPTABLE
An annual sales growth is -10.67%. Turnover has decreased from THB
PROFITABILITY
: IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
24.15 |
Impressive |
Industrial Average |
20.70 |
|
Net Profit Margin |
8.74 |
Impressive |
Industrial Average |
5.28 |
|
Return on Assets |
13.64 |
Impressive |
Industrial Average |
4.33 |
|
Return on Equity |
16.61 |
Satisfactory |
Industrial Average |
18.05 |
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 24.15%. 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 8.74% 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 13.64%, 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.
When compared with the industry average, it was lower, the company's figure is
16.61%.
Trend
of the average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY
: SATISFACTORY
LIQUIDITY
RATIO
|
Current Ratio |
3.56 |
Impressive |
Industrial Average |
1.00 |
|
Quick Ratio |
1.93 |
|
|
|
|
Cash Conversion Cycle |
72.19 |
|
|
|
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 3.56 times in 2013, increased from 2.25 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 1.93 times in 2013, increased from 1.34 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
73 days.
Trend
of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE
: EXCELLENT
LEVERAGE
RATIO
|
Debt Ratio |
0.18 |
Impressive |
Industrial Average |
0.78 |
|
Debt to Equity Ratio |
0.22 |
Impressive |
Industrial Average |
3.54 |
|
Times Interest Earned |
33.34 |
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 lower the percentage means that the
company is using less leverage and has a stronger equity position.
Times Interest Earned measuring a company's
ability to meet its debt obligations. Ratio is 33.34 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 0.18
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 |
6.66 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.56 |
Impressive |
Industrial Average |
0.82 |
|
Inventory Conversion Period |
76.52 |
|
|
|
|
Inventory Turnover |
4.77 |
Satisfactory |
Industrial Average |
5.52 |
|
Receivables Conversion Period |
4.49 |
|
|
|
|
Receivables Turnover |
81.33 |
Impressive |
Industrial Average |
9.74 |
|
Payables Conversion Period |
8.83 |
|
|
|
The company's Account Receivable Ratio is
calculated as 81.33 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 57 days
at the end of 2012 to 77 days at the end of 2013. This represents a negative
trend. And Inventory turnover has decreased from 6.39 times in year 2012 to
4.77 times in year 2013.
The company's Total Asset Turnover is
calculated as 1.56 times and 1.85 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 Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.58 |
|
|
1 |
Rs.97.99 |
|
Euro |
1 |
Rs.70.53 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
NIT |
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.