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|
MIRA INFORM REPORT
|
Report No. : |
497428 |
|
Report Date : |
17.03.2018 |
IDENTIFICATION DETAILS
|
Name : |
ESSOM CO., LTD. |
|
|
|
|
Registered Office : |
508 SOI 22/1 Somdet Phrachao Taksin Road, Bukkalo, Thonburi, Bangkok 10600 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2016 |
|
|
|
|
Date of Incorporation : |
21.04.1986 |
|
|
|
|
Com. Reg. No.: |
0105529013499 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Design, Manufacturer, Importer and Distributor of Engineering and Science Laboratory Equipment. |
|
|
|
|
No. of Employees : |
138 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A+ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
Status : |
Good |
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|
|
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Payment Behaviour : |
Regular |
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|
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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
Thailand |
A2 |
A2 |
|
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 relatively well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, Thailand is highly dependent on international trade, with exports accounting for about two-thirds of GDP. Thailand’s exports include electronics, agricultural commodities, automobiles and parts, and processed foods. The industry and service sectors produce about 90% of GDP. The agricultural sector, comprised mostly of small-scale farms, contributes only 10% of GDP but employs about one-third of the labor force. Thailand has attracted an estimated 3.0-4.5 million migrant workers, mostly from neighboring countries.
Over the last few decades, Thailand has reduced poverty substantially. In 2013, the Thai Government implemented a nationwide 300 baht (roughly $10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners.
Thailand’s economy is recovering from slow growth during the years since the 2014 coup. Thailand’s economic fundamentals are sound, with low inflation, low unemployment, and reasonable public and external debt levels. Tourism and government spending - mostly on infrastructure and short-term stimulus measures – have helped to boost the economy, and The Bank of Thailand has been supportive, with several interest rate reductions.
Over the longer-term, household debt levels, political uncertainty, and an aging population pose risks to growth.
|
Source
: CIA |
Company name
ESSOM CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 508
SOI 22/1 SOMDET PHRACHAO TAKSIN ROAD,
BUKKALO, THONBURI,
BANGKOK 10600, THAILAND
TELEPHONE : [66] 2476-0034
FAX :
[66] 2476-1500
E-MAIL
ADDRESS : sales@essom.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1986
REGISTRATION
NO. : 0105529013499
TAX
ID NO. : 3101385380
CAPITAL REGISTERED : BHT. 10,000,000
CAPITAL PAID-UP : BHT.
10,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SUNTHORN SRINILTA, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 138
LINES
OF BUSINESS : ENGINEERING AND
SCIENCE LABORATORY
EQUIPMENT
DESIGN,
MANUFACTURER, IMPORTER 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 April 21,
1986 as a
private limited company under
the registered name ESSOM
CO., LTD., by
Thai group, the
Srinilta family, with
the business objective
to design, manufacture,
import and distribute
engineering and science
laboratory equipments for
educational and industrial
purposes. It currently
employs 138 staff.
It
achieved the standard
ISO 9001 certification, Quality Management Systems
in 1999.
The subject’s registered address is 508 Soi
22/1, Somdet Phrachao Taksin Road, Bukkalo, Thonburi,
Bangkok 10600, and this is
the subject’s current
operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sunthorn Srinilta |
[x] |
Thai |
85 |
|
Mrs. Aim-orn Srinilta |
|
Thai |
80 |
|
Mr. San Srinilta |
|
Thai |
52 |
|
Mrs. Amornsiri Srinilta |
|
Thai |
49 |
|
Mr. Kamol Srinilta |
|
Thai |
48 |
|
Mr. Naris Srinilta |
|
Thai |
46 |
AUTHORIZED PERSON
Only the mentioned
director [x] signs
or any two
of the rest
directors can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Sunthorn Srinilta is the
Managing
Director.
He is Thai
nationality with the
age of 85
years old.
Mr. San Srinilta is
the Deputy Managing
Director & Factory Manager.
He is Thai
nationality with the
age of 52
years old.
Mr. Naris Srinilta is the Marketing
Manager.
He is Thai
nationality with the
age of 46
years old.
BUSINESS OPERATIONS
The subject is
engaged in design,
assembling and marketing
various kinds of
engineering and science
laboratory equipments for education, mainly in
mechanical and civil engineering,
under its own
brand “ESSOM”.
It is also an importer
and distributor of
scientific and other
engineering equipments for
education, as well
as paint spray
equipment for coating
industry, under various
brands such as
“BINKS”, “DEVILBISS”, “ITW RANSBURG”,
“GEOTECH”, “TECNOTEST”, “MS”
and etc.
The products
are as follows:
1. Education
Products
·
Engineering
- Fluid Mechanics and
Hydrology
- Thermodynamics
- Materials Testing
- Theory of
machines
- Structures and accessories
- Physics
- Miscellaneous
- Learning Software
- Operating Software
- Chemical Engineering
and Food Technology
- Science Equipment
·
Petroleum
Testing
- Bituminous
Test
- Inflammability
- Calorimeter
- Liquid Petroleum
Gas [LPG]
- Corrosion
- Penetration
- Densimetry
- Rust
- Distillation
- Viscosity
- Greases
- Miselaneous
2. Industrial Products
·
Paint
Spray System
- Manual Spray
Gun Pressure, Gravity, Suction
- Manual Spray
Gun - Medium/High Pressure
- Automatic Spray
Guns - Low Pressure
- Automatic Guns - Medium
and High Pressure
- Pressure Feed
Tanks/Cups
- Paint Pumps
- Low Pressure
- Paint Pumps
- Medium and
High Pressure
- Electrostatic Spray
Guns
- 2K Fluid
Equipment
- Agitators
- Power Coating
- Technisis Paper
- Respiratory Protection
Masks
- Air Filter
Regulator Coalescers
- Accessories
PURCHASE
Raw
materials for the
production, as well
as finished products
are purchased from
suppliers both domestic and
overseas, mainly in
Germany, Italy, Japan, United
Kingdom,
Republic
of China, Malaysia and
U.S.A.
MAJOR
SUPPLIERS
Nihon
Parkerizing Co., Ltd. : Japan
S.D.M.
Apparacchi Scientifici Srl. : Italy
SALES
Most of the
products are sold
locally to wholesalers
and end-users, mainly
university and college
both private and
government, the remaining
is exported to
Malaysia, India, Indonesia,
Hong Kong Philippines,
Pakistan, El Salvador
and South Africa.
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.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Company
Limited
Kasikornbank
Public Company Limited
EMPLOYMENT
The
subject employs 138
staff.
LOCATION DETAILS
The
premise is owned
for administrative office
at the heading
address. Premise is located in
commercial/residential area.
Factory
and warehouse are
located at 34/1
Moo 12, Soi
Pracharaj 42, Budhamonthon
Sai 5 Road,
T. Raiking, A. Sampran, Nakornpathom 73210.
Total area :
2,000 square meters.
Tel.: [66] 2811-9731-3
Fax: [66] 2811-9734
COMMENT
The
subject is a high
quality company in design, manufacturing
and marketing engineering
and science laboratory
equipment for education mainly
in mechanical and
civil engineering, as well
as providing equipment
for coating industry.
Its products has
been designed by
its experienced and
well qualified engineers
with prototypes passing
design test standards
before production. Parts
and materials for
the equipment are
sourced from approved suppliers and
are of readily
available industrial components.
Subject
reported an impressive performance
in 2016 with
an increase in
both sales or service
income and net
profit comparing to
the previous year, mainly
caused by high
demand of the products
from industrial sector
including private and
government school and
universities. Its business
is promising and growing
considerably.
FINANCIAL INFORMATION
The capital
was registered at Bht. 1,000,000
divided into 10,000 shares
of Bht. 100 each
with fully paid.
The
capital was increased
later as follows:
Bht. 2,000,000
on May 9,
1990
Bht. 3,000,000
on November 11,
1996
Bht. 5,000,000
on January 17,
2000
Bht. 10,000,000
on March 2,
2005
The
latest registered capital
was increased to
Bht. 10,000,000 divided into
100,000 shares of
Bht. 100 each
with fully paid.
MAIN SHAREHOLDERS
[as
at January 26,
2017]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Sunthorn Srinilta Nationality: Thai Address : 510/1 Somdet Phrachao
Taksin Rd.,
Bukkalo, Thonburi, Bangkok |
25,080 |
25.08 |
|
Mrs. Aim-orn Srinilta Nationality: Thai Address : 524
Somdet Phrachao Taksin
Rd.,
Bukkalo, Thonburi, Bangkok |
10,000 |
10.00 |
|
Mrs. Amornsiri Srinilta Nationality: Thai Address : 510/1 Somdet Phrachao
Taksin Rd., Bukkalo, Thonburi,
Bangkok |
8,000 |
8.00 |
|
Mr. San Srinilta Nationality: Thai Address : 510/2
Somdet Phrachao Taksin
Rd.,
Bukkalo, Thonburi, Bangkok
|
8,000 |
8.00 |
|
Mr. Naris Srinilta Nationality: Thai Address : 506
Somdet Phrachao Taksin
Rd.,
Bukkalo, Thonburi, Bangkok
|
8,000 |
8.00 |
|
Mr. Kamol Srinilta Nationality: Thai Address : 510/3
Somdet Phrachao Taksin
Rd.,
Bukkalo, Thonburi, Bangkok
|
8,000 |
8.00 |
|
Mr. Yanapat Srinilta Nationality: Thai Address : 510/3
Somdet Phrachao Taksin
Rd.,
Bukkalo, Thonburi, Bangkok
|
4,000 |
4.00 |
|
Ms. Tanachapak Srinilta Nationality: Thai Address : 510/3
Somdet Phrachao Taksin
Rd.,
Bukkalo, Thonburi, Bangkok
|
4,000 |
4.00 |
|
Ms. Kanokwan Srinilta Nationality: Thai Address : 506
Somdet Phrachao Taksin
Rd.,
Bukkalo, Thonburi, Bangkok
|
4,000 |
4.00 |
|
Other Shareholders |
20,920 |
20.92 |
Total Shareholders : 17
Share Structure
[as at January
26, 2017]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
17 |
100,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
17 |
100,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Mrs. Buppha Chawapong No.
7640
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2016, 2015
and 2014 were:
ASSETS
|
Current Assets |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Cash and Cash Equivalents |
2,615,376.63 |
7,118,054.16 |
1,412,752.90 |
|
Trade Accounts and
Other Receivable |
15,501,319.89 |
14,092,991.43 |
27,623,119.10 |
|
Short-term Loans |
2,241,237.00 |
- |
- |
|
Inventories |
41,182,998.64 |
41,994,072.41 |
35,853,907.47 |
|
Other Current Assets |
1,433,495.77 |
2,296,097.13 |
2,263,027.94 |
|
Total Current Assets
|
62,974,427.93 |
65,501,215.13 |
67,152,807.41 |
|
|
|
|
|
|
Investment in Joint Venture |
- |
- |
520,865.00 |
|
Property, Plant and
Equipment |
21,262,476.92 |
20,870,213.79 |
20,422,832.72 |
|
Other Non-current Assets |
776,900.00 |
742,860.00 |
590,100.00 |
|
Total Assets |
85,013,804.85 |
87,114,288.92 |
88,686,605.13 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Bank Overdraft and Short-term Loan From Financial Institutions |
1,384,601.39 |
391,292.61 |
8,797,294.38 |
|
Trade Accounts and Other
Payable |
4,940,989.89 |
3,537,634.08 |
4,638,352.68 |
|
Current Portion of Long-term Liabilities |
425,954.97 |
440,952.00 |
- |
|
Other Current Liabilities |
9,665,045.10 |
10,156,750.17 |
9,697,121.71 |
|
Total Current Liabilities |
16,406,591.35 |
14,526,628.86 |
23,132,768.77 |
|
|
|
|
|
|
Long-term Loan |
327,304.65 |
33,554,769.48 |
24,851,048.75 |
|
Provision for Employee
Benefits |
1,956,444.72 |
1,232,089.07 |
1,361,067.17 |
|
Other Non-current Liabilities |
22,724,964.23 |
634,096.90 |
275,663.90 |
|
Total Liabilities |
41,415,304.95 |
49,947,584.31 |
49,620,548.59 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, and
issued share capital
100,000 shares |
10,000,000.00 |
10,000,000.00 |
10,000,000.00 |
|
Capital Paid |
10,000,000.00 |
10,000,000.00 |
10,000,000.00 |
|
Retained Earning - [Deficit] Appropriated statutory
reserve |
- |
- |
- |
|
Unappropriated |
33,598,499.90 |
27,166,704.61 |
29,066,056.54 |
|
Total Shareholders’ Equity |
43,598,499.90 |
37,166,704.61 |
39,066,056.54 |
|
Total Liabilities and
Shareholders’ Equity |
85,013,804.85 |
87,114,288.92 |
88,686,605.13 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Sales or Services Income |
137,388,948.57 |
120,075,088.60 |
104,010,285.67 |
|
Other Income |
764,897.05 |
302,500.90 |
939,706.27 |
|
Total Revenues |
138,153,845.62 |
120,377,589.50 |
104,949,991.94 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold or Services |
85,743,370.48 |
73,644,773.83 |
64,723,533.78 |
|
Selling Expenses |
6,907,816.20 |
8,494,795.16 |
5,178,004.33 |
|
Administrative Expenses |
36,129,098.29 |
31,936,572.66 |
28,802,046.57 |
|
Total Expenses |
128,780,284.97 |
114,076,141.65 |
98,703,584.68 |
|
|
|
|
|
|
Profit /[Loss] before
Financial Cost and Income Tax |
9,373,560.65 |
6,301,447.85 |
6,246,407.26 |
|
Financial Cost |
[1,368,228.16] |
[1,939,866.83] |
[1,940,902.74] |
|
|
|
|
|
|
Profit /[Loss] before Income
Tax |
8,005,332.49 |
4,361,581.02 |
4,305,504.52 |
|
Income Tax |
[1,573,537.20] |
[1,260,932.95] |
[1,000,546.19] |
|
Net Profit / [Loss] |
6,431,795.29 |
3,100,648.07 |
3,304,958.33 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
3.84 |
4.51 |
2.90 |
|
QUICK RATIO |
TIMES |
1.24 |
1.46 |
1.26 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
6.46 |
5.75 |
5.09 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.62 |
1.38 |
1.17 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
175.31 |
208.13 |
202.19 |
|
INVENTORY TURNOVER |
TIMES |
2.08 |
1.75 |
1.81 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
41.18 |
42.84 |
96.94 |
|
RECEIVABLES TURNOVER |
TIMES |
8.86 |
8.52 |
3.77 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
21.03 |
17.53 |
26.16 |
|
CASH CONVERSION CYCLE |
DAYS |
195.46 |
233.44 |
272.97 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
62.41 |
61.33 |
62.23 |
|
SELLING & ADMINISTRATION |
% |
31.32 |
33.67 |
32.67 |
|
INTEREST |
% |
1.00 |
1.62 |
1.87 |
|
GROSS PROFIT MARGIN |
% |
38.15 |
38.92 |
38.68 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
6.82 |
5.25 |
6.01 |
|
NET PROFIT MARGIN |
% |
4.68 |
2.58 |
3.18 |
|
RETURN ON EQUITY |
% |
14.75 |
8.34 |
8.46 |
|
RETURN ON ASSET |
% |
7.57 |
3.56 |
3.73 |
|
EARNING PER SHARE |
BAHT |
64.32 |
31.01 |
33.05 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.49 |
0.57 |
0.56 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.95 |
1.34 |
1.27 |
|
TIME INTEREST EARNED |
TIMES |
6.85 |
3.25 |
3.22 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
14.42 |
15.45 |
|
|
OPERATING PROFIT |
% |
48.75 |
0.88 |
|
|
NET PROFIT |
% |
107.43 |
(6.18) |
|
|
FIXED ASSETS |
% |
1.88 |
2.19 |
|
|
TOTAL ASSETS |
% |
(2.41) |
(1.77) |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 14.42%. Turnover has increased from THB
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
38.15 |
Impressive |
Industrial
Average |
29.74 |
|
Net Profit Margin |
4.68 |
Impressive |
Industrial
Average |
2.72 |
|
Return on Assets |
7.57 |
Impressive |
Industrial
Average |
3.34 |
|
Return on Equity |
14.75 |
Impressive |
Industrial
Average |
6.93 |
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. Gross Profit Margin is 38.15%. 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. Net Profit Margin ratio is 4.68%,
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
7.57%, 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 14.75%, 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 :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
3.84 |
Impressive |
Industrial
Average |
1.70 |
|
Quick Ratio |
1.24 |
|
|
|
|
Cash Conversion Cycle |
195.46 |
|
|
|
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 3.84 times in 2016, decrease
from 4.51 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 1.24 times in 2016,
decrease from 1.46 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 196 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.49 |
Impressive |
Industrial
Average |
0.53 |
|
Debt to Equity Ratio |
0.95 |
Impressive |
Industrial
Average |
1.15 |
|
Times Interest Earned |
6.85 |
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 6.86 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 0.49 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 Downtrend
Times Interest Earned Stable
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
6.46 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.62 |
Impressive |
Industrial
Average |
1.23 |
|
Inventory Conversion Period |
175.31 |
|
|
|
|
Inventory Turnover |
2.08 |
Satisfactory |
Industrial
Average |
2.66 |
|
Receivables Conversion Period |
41.18 |
|
|
|
|
Receivables Turnover |
8.86 |
Impressive |
Industrial
Average |
3.81 |
|
Payables Conversion Period |
21.03 |
|
|
|
The company's Account Receivable Ratio is calculated as 8.86 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 208 days at the
end of 2015 to 175 days at the end of 2016. This represents a positive trend.
And Inventory turnover has increased from 1.75 times in year 2015 to 2.08 times
in year 2016.
The company's Total Asset Turnover is calculated as 1.62 times and 1.38
times in 2016 and 2015 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 Downtrend
Inventory Turnover Downtrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.87 |
|
|
1 |
INR 90.49 |
|
Euro |
1 |
INR 79.91 |
|
Thai Baht |
1 |
INR 2.09 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
NIT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.