MIRA INFORM REPORT
|
Report Date : |
04.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
BANGKOK
CABLE CO., LTD. |
|
|
|
|
Registered Office : |
2nd, 3rd Floor,
Bangkok Cable Building, 187/1 Rajdamri
Road, Lumpini, Pathumwan, Bangkok 10330 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
07.03.1974 |
|
|
|
|
Com. Reg. No.: |
0105517002853 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer,
Distributer & Exporter of Wires &
Cables |
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 |
|
Maximum Credit Limit : |
US $ 15,000,000 |
|
Status : |
Satisfactory |
|
Payment
Behaviour : |
No Complaints |
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
Thailand |
b1 |
b1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
BANGKOK CABLE
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 2nd, 3rd FLOOR,
BANGKOK CABLE BUILDING,
187/1 RAJDAMRI
ROAD, LUMPINI, PATHUMWAN, BANGKOK 10330
TELEPHONE : [66] 2254-4550-9,
2651-9252-6
FAX :
[66] 2253-5973,
2253-6028
E-MAIL
ADDRESS : sales@bangkokcable.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1974
REGISTRATION
NO. : 0105517002853
CAPITAL REGISTERED : BHT. 1,300,000,000
CAPITAL PAID-UP : BHT.
1,300,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SOMPONG NAKORNSRI, THAI
PRESIDENT &
CHIEF EXECEUTIVE OFFICER
NO.
OF STAFF : 580
LINES
OF BUSINESS : WIRES
& CABLES
MANUFACTURER, DISTRIBUTER
& 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 March
7, 1974 as
a private limited
company under the name style BANGKOK ELECTRIC WIRE AND CABLE CO.,
LTD. by Thai
executives and engineers
to produce &
distribute copper insulated
wire and cable.
Its factories are
located on 57,600
square meters and 345,600 square meters
of land in
Samutprakarn and Chachoengsao
provinces respectively. On
August 29, 1975
the subject’s name was
changed to BANGKOK
CABLE CO., LTD.
In 1982, the
subject was formed
its joint venture
company between Hitachi
Bangkok Cable Co., Ltd. and Hitachi Cable
Co., Ltd., Japan to
produce telephones’ cables.
In 1983, the
BOI granted promotion
privileges to stall
a continuous Casting Upcast Process-Outokumpu to
produce copper wire
rod of 14.4
mm. with a
production capacity of 6,000
tons per year.
In 1989, the
formation of a
joint-venture called Thai
Copper Rod Co., Ltd.,
with Phelps Dodge
Thailand Ltd. to
produce 8.0 mm.
copper wire with
production capacity of
40,000 tons per
year.
In 1996 the
subject granted ISO
9002 quality certificate
by RWTV.
In 1997 the subject
granted TIS, ISO 9002
quality certificate by
Thai Industrial Standard
Institute.
The subject’s registered
address is 2nd, 3rd Flr.,
Bangkok Cable Bldg., 187/1
Rajdamri Rd., Lumpini,
Pathumwan, Bangkok 10330,
and this is
the company’s current
operation address. It currently
employs approximately 580
staff.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sompong Nakornsri |
[x] |
Thai |
76 |
|
Mr. Termsakdi Honghiran |
|
Thai |
63 |
|
Mrs. Thippa Nakornsri |
[x] |
Thai |
75 |
|
Mrs. Kantika Preechaharn |
[x] |
Thai |
49 |
|
Mrs. Thitinan Jantarasamee |
|
Thai |
46 |
|
Mr. Thisaphol Nakornsri |
|
Thai |
38 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Sompong Nakornsri
is the President
& Chief Executive
Officer.
He is Thai
nationality with the
age of 76
years old. He
has 38 years experience in Electric
Cable Business. He is
also the Chairman
of Hitachi Bangkok
Cable Co., Ltd.
Mr. Athikom Thongnamtako is
the Senior Executive
Vice President.
He is Thai
nationality with the
age of 81
years old. He
has 23 years
experience in Electric Cable
Industry, 9 years
in Banking and
Finance business and 9
years in Life &
General Insurance Industry.
Mr. Termsakdi Honghiran
is the Vice
President.
He is Thai
nationality with the
age of 63
years old. He has
31 years experience in Electric
cable Industry. Currently,
he is also
the Marketing Director
of Hitachi Bangkok
Cable Co., Ltd.
Mr. Anuchart Preechanont
is the Assistant
Vice President.
He is Thai
nationality with age
of 66 years
old. He has
34 years experience in electric
cable industry.
Mr. Thisaphol Nakornsri
is the Assistant
Vice President.
He is Thai
nationality with age of
38 years old.
Mrs. Kantika Preechaharn
is the Account
& Finance Director.
She is Thai
nationality with the
age of 49
years old.
Mrs. Thitinan Jantarasamee is
the Executive Director.
She is Thai
nationality with the
age of 46
years old.
Mr. Pairin Kwangvithayanond is
the Sales Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is engaged in
manufacturing various kinds
of copper wire
and cable including high/ medium/
low voltage power cables, control cables
and bare conductors,
flexible wires and cables, low smoke
halogen free, fire
resistant and flame
retardant cables.
MAJOR BRAND
“BANGKOK CABLE”
PRODUCTS
Copper Wire and Cable
1. Building Wire and Cable
2. Low Voltage Power
3. Control Cable
4. Bare Conductor
Total Capacity 100,000 tons/year
Aluminium Wire and Cable
1. Bare Conductor
-AAC Cable
-ACSR Cable
2. Low Voltage Cable 0-1000 Volt
-Nay Cable
-THW-A Cable
-AWV Cable
3. Medium Voltage Cable 7-35 KV
-PIC Cable
-SAC Cable
Total Capacity 25,000 tons/year
PURCHASE
Raw materials; copper
cathodes, aluminum ingots
and etc, are purchased from more than 30
suppliers both domestic
and overseas in
Japan, Chile, Australia
and Canada.
MAJOR SUPPLIERS
- Mitsubishi, Japan
Products: Aluminum
& copper
- Thai Plastic &
Chemical Public Co., Ltd.,
Thailand
Products: PVC
resin
- Codelco Ltd., Chile
Products : Aluminum &
copper
- Mitsui Corporation, Japan
Products : Aluminum &
copper
- Tomago Aluminium [Bellbay]
Ltd., Canada
Products : Aluminum &
copper
- Sumitomo Corp. [Thailand]
Ltd., Thailand
Products : Aluminum
DISTRIBUTION
The subject’s products
are distributed to
approximately 70 customers
both domestic and
overseas markets, by 80%
of its
products is sold
directly to wholesalers.
The subject maintains around 50 clients comprise dealers, contractors
and the states enterprises in Thailand, the remaining 20% is exported to around
20 customers in Philippines, Bangladesh, Laos,
Vietnam, Malaysia, Singapore,
India and Australia.
MAJOR CUSTOMERS
- Provincial Electricity Authority,
Thailand
- Metropolitan Electricity Authority,
Thailand
- Electricity Generating Authority
of Thailand, Thailand
- TOT Corporation Public
Co., Ltd., Thailand
- B & K Innovation Technology
Co., Ltd.
- Athens Electrical Products
Co., Ltd.
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
for the past
two years.
SUBSIDIARIES AND AFFILIATED COMPANIES
It is found
the subject has subsidiaries
and affiliated companies
as follows:
Indra Industrial Park
Co., Ltd.
Business Type: Properties
Investment :
The subject is holding around
65% of the total shares.
JOINT VENTURE COMPANIES
Hitachi Bangkok Cable Co., Ltd.
Business Type :
Manufacturer of telephone
cable
Investment :
The subject is
holding around 40% of
the total shares.
Tawana Container Co., Ltd.
Business Type :
Manufacturer of corrugated
paper container
Investment
: The subject
is holding around 37.50%
of the total shares.
Thai Copper Rod
Co., Ltd.
Business Type :
Manufacturer of copper
rod
Investment :
The subject is holding around 30% of
the total shares.
Bangkok Polyester Public
Co., Ltd.
Business Type :
Manufacturer of PVC
resin for PET
bottles
Investment :
The subject is
holding around 30% of the
total shares.
Bangkok Solar Co.,
Ltd.
Business Type
: manufacturer of
solar cell products.
Other
Companies
Thai Hitachi Enamel
Wire Co., Ltd.
Business Type : Manufacturer of
enamel wire
Investment :
The subject is
holding around 14.16% of
the total shares.
Thai Refrigeration Component
Co., Ltd.
Business Type :
Manufacturer of refrigeration
components
Investment :
The subject is
holding around 10%
of the total
shares.
Thai Kyowa Engineering
Co., Ltd.
Business Type : Telecommunication system
construction
Investment
: The subject
is holding around 9.98% of
the total shares.
Kotobuki Di-Casting [Thailand]
Co., Ltd.
Business Type : Metal
press parts
Investment
: The subject t is
holding around 9.09%
of the total
shares.
Thai Wire and
Cable Services Co., Ltd.
Business Type : Electric
appliance’s wires
Investment
: The subject
is holding around
6.66% of the
total shares.
Thai CRT Co., Ltd.
Business Type :
Manufacturer of colour
picture tube
Investment :
The subject is
holding around 0.85%
of the total shares.
CREDIT
The subject sells for 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 on the
credit of 60
days or D/P
at sight &
T/T on the
credit term of
30 days.
Exports are against
L/C at sight & T/T.
BUSINESS TRANSACTION
In term of
sales, the products
are sold mainly
to local customers
with the maximum
credit given at
60 days, and the remaining to
overseas customers by
L/C or T/T
on 30-90 days.
The subject is
found to have no problem
on its account
receivable. For the
import, the subject
has no default
payment due to
the products are
purchased mainly by
L/C at sight
and occasionally by
D/P or T/T
on 30 days
term.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office : 333 Silom
Rd., Bangrak, Bangkok
10500]
[Hualampong Branch : 227 Rama
4 Rd., Rongmuang,
Pathumwan, Bangkok 10330]
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
approximately 580 staff. [office, sales
staff and factory
workers]
LOCATION DETAILS
The premise is
rented for administrative office
in a multi-storey
building, at the
heading address. The
premise is located
in a prime
commercial area.
The administrative office
[Bangkok Cable Building]
is owned by
Pongtipa Co., Ltd., the subject’s subsidiary company.
Factory I : 93 Moo 11
Soi Cable, Suksawad
Road, A. Prasamutchadee,
Samutprakarn
10290, Thailand on the area
of 57,600 sq.meters.
Tel: [66]
2815-6291-5, Fax: [66]
2815-6296.
Factory II : 39/1
Moo 1, Bangpakong-Chachoengsao Rd.,
T. Saenpudast,
A.
Banpho,
Chachoengsao 24140 on
the area of
345,600 sq.m.,
Tel: [66]
38 577-266-9, Fax: [66]
38 577-270-1.
REMARK
MAXIMUM CREDIT OF
US$ 15,000,000 SHOULD
BE IN ORDER.
COMMENT
The subject is the country’s leading manufacturer of wire and cables and
considered an experience player in
the industry.
With an eye to the
future the company strive to
maintain the highest standards of
quality. Production procedure reflects a continuing commitment to
the latest high technology
and sophisticated machineries
as well as increasing of production
to cope with the rapid
growth industries.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 5,000,000, divided into
5,000 shares of
Bht. 1,000 each.
The capital was
increased later as
followings:
Bht. 100,000,000 on
February 6, 1989
Bht. 200,000,000 on
December 28, 1992
Bht. 500,000,000 on
March 27, 1995
Bht. 800,000,000 on
August 28, 1997
Bht. 1,300,000,000
on November 24,
1999
The latest registered
capital was increased
to Bht. 1,300,000,000 divided
into 13,000,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED
WERE : [as at
April 29, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Thippa Nakornsri Nationality : Thai Address : 990/1 Soi
Suanplu, Nanglinchee Rd.,
Thungmahamek, Sathorn, Bangkok
10120 |
6,400,000 |
49.23 |
|
Mr. Sompong Nakornsri Nationality : Thai Address : 187/1 Rajdamri
Rd., Lumpini, Pathumwan, Bangkok 10330 |
1,600,000 |
12.31 |
|
Mrs. Thitinan Jantarasamee Nationality : Thai Address : 187/1 Rajdamri
Rd., Lumpini, Pathumwan, Bangkok 10330 |
1,600,000 |
12.31 |
|
Mr. Thisaphol Nakornsri
Nationality : Thai Address : 187/1 Rajdamri
Rd., Lumpini, Pathumwan, Bangkok 10330 |
1,600,000 |
12.31 |
|
Mrs. Kantika Preechaharn Nationality : Thai Address : 187/1 Rajdamri
Rd., Lumpini, Pathumwan, Bangkok 10330 |
1,599,999 |
12.30 |
|
Mr. Termsak Honghiran Nationality : Thai Address : 9 Ramkhamhaeng 22
Rd., Huamark,
Bangkapi, Bangkok 10240 |
200,000 |
1.54 |
|
Mr. Tachpol Preechaharn Nationality : Thai Address : 84/1 Moo
3, Ngamwongwan Rd.,
Ladyao,
Bangkhen, Bangkok 10900 |
1 |
100 |
Total Shareholders : 7
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Sureerat
Thong-aroonsaeng No. 4409
BALANCE SHEET [BAHT]
The latest financial figures published for December 31, 2010 & 2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalents |
168,234,592 |
170,009,404 |
|
Trade Accounts Receivable |
1,755,828,173 |
1,350,781,264 |
|
Others Receivable Related Company |
20,000,937 |
13,898,461 |
|
Current Portion of Long-term Loan to Related Company |
- |
57,600,000 |
|
Inventories |
1,708,125,625 |
1,245,500,902 |
|
Other Current Assets
|
4,700,446 |
5,604,122 |
|
|
|
|
|
Total Current Assets
|
3,656,889,773 |
2,843,394,153 |
|
Investment in Subsidiary |
999,232,999 |
1,009,346,312 |
|
Investment in Associated |
394,702,631 |
394,702,631 |
|
Other Long-term Investment |
95,799,703 |
53,980,800 |
|
Long-term Loan to Related Company |
429,285,000 |
341,085,000 |
|
Fixed Assets |
702,855,760 |
771,429,111 |
|
Intangible Assets |
47,632,234 |
53,690,099 |
|
Other Assets |
123,500 |
22,500 |
|
Total Assets |
6,326,521,600 |
5,467,650,606 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial |
651,535,664 |
24,999,394 |
|
Trade Accounts Payable |
591,662,927 |
364,052,590 |
|
Other Payable Related Company |
- |
4,496,366 |
|
Current Portion of Other
Long-term Loan from Financial |
11,676,000 |
103,870,000 |
|
Accrued Income Tax |
125,810,621 |
108,897,314 |
|
Other Current Liabilities |
85,080,234 |
84,093,742 |
|
|
|
|
|
Total Current Liabilities |
1,465,765,446 |
690,409,406 |
|
Long-term loan from
Financial |
7,033,000 |
481,909,000 |
|
Other Non-current Liabilities |
8,857,000 |
8,857,000 |
|
Total Liabilities |
1,481,655,446 |
1,181,175,406 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 13,000,000 shares |
1,300,000,000 |
1,300,000,000 |
|
|
|
|
|
Capital Paid |
1,300,000,000 |
1,300,000,000 |
|
Retained Earning Appropriated for
Statutory Reserve
|
130,000,000 |
130,000,000 |
|
Unappropriated [Deficit] |
3,414,866,154 |
2,856,475,200 |
|
Total Shareholders' Equity |
4,844,866,154 |
4,286,475,200 |
|
Total Liabilities &
Shareholders' Equity |
6,326,521,600 |
5,467,650,606 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales & Services
Income |
6,424,332,007 |
5,251,310,426 |
|
Gain on Exchange Rate |
33,299,245 |
15,169,904 |
|
Other Income |
182,797,156 |
356,463,897 |
|
Total Sales |
6,640,428,408 |
5,622,944,227 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold & Services |
5,635,754,117 |
4,358,802,986 |
|
Selling Expenses |
95,445,277 |
90,341,142 |
|
Administrative Expenses |
88,704,836 |
96,030,355 |
|
Total Expenses |
5,819,904,180 |
4,545,174,483 |
|
|
|
|
|
Profit before Finance Cost
& Income Tax |
820,524,228 |
1,077,769,744 |
|
Finance Cost |
[28,186,622] |
[20,015,164] |
|
Profit before Income Tax |
792,337,606 |
1,057,754,580 |
|
Income Tax |
[233,946,652] |
[243,064,178] |
|
|
|
|
|
Net Profit / [Loss] |
558,390,954 |
814,690,402 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
2.49 |
4.12 |
|
QUICK RATIO |
TIMES |
1.33 |
2.31 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
9.14 |
6.81 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.02 |
0.96 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
110.63 |
104.30 |
|
INVENTORY TURNOVER |
TIMES |
3.30 |
3.50 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
99.76 |
93.89 |
|
RECEIVABLES TURNOVER |
TIMES |
3.66 |
3.89 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
38.32 |
30.49 |
|
CASH CONVERSION CYCLE |
DAYS |
172.07 |
167.70 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
87.73 |
83.00 |
|
SELLING & ADMINISTRATION |
% |
2.87 |
3.55 |
|
INTEREST |
% |
0.44 |
0.38 |
|
GROSS PROFIT MARGIN |
% |
15.64 |
24.07 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
12.77 |
20.52 |
|
NET PROFIT MARGIN |
% |
8.69 |
15.51 |
|
RETURN ON EQUITY |
% |
11.53 |
19.01 |
|
RETURN ON ASSET |
% |
8.83 |
14.90 |
|
EARNING PER SHARE |
BAHT |
42.95 |
62.67 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.23 |
0.22 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.31 |
0.28 |
|
TIME INTEREST EARNED |
TIMES |
29.11 |
53.85 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
22.34 |
|
|
OPERATING PROFIT |
% |
(23.87) |
|
|
NET PROFIT |
% |
(31.46) |
|
|
FIXED ASSETS |
% |
(8.89) |
|
|
TOTAL ASSETS |
% |
15.71 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
15.64 |
Impressive |
Industrial Average |
9.64 |
|
Net Profit Margin |
8.69 |
Impressive |
Industrial Average |
3.31 |
|
Return on Assets |
8.83 |
Impressive |
Industrial Average |
3.12 |
|
Return on Equity |
11.53 |
Impressive |
Industrial Average |
4.50 |
Gross Profit Margin used to assess a firm's financial health by revealing
the proportion of money left over from sales 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 15.64%. When compared with
the industry average, the ratio of the company was higher, this 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 8.69%, 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
8.83%, higher figure when compared with those of its average competitors in the
same industry, indicated that business was an efficient profits in a dominant
position within its industry.
Return on Equity indicates how profitable a company is by comparing its
net income to its average shareholders' equity, ROE measures how much the
shareholders earned for their investment in the company. Return on Equity ratio
is 11.53%, 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 Downtrend
Return on Equity Downtrend
LIQUIDITY RATIO
|
Current Ratio |
2.49 |
Satisfactory |
Industrial
Average |
2.95 |
|
Quick Ratio |
1.33 |
|
|
|
|
Cash Conversion Cycle |
172.07 |
|
|
|
The Current Ratio is to ascertain whether a company's short-term assets
are readily available to pay off its short-term liabilities. The company's
figure is 2.49 times in 2010, decrease from 4.12 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 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 1.33 times in 2010,
decrease from 2.31 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 173 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.23 |
Impressive |
Industrial
Average |
0.25 |
|
Debt to Equity Ratio |
0.31 |
Impressive |
Industrial
Average |
0.35 |
|
Times Interest Earned |
29.11 |
Impressive |
Industrial
Average |
6.68 |
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 29.12 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 0.23 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 Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
9.14 |
Impressive |
Industrial Average |
3.73 |
|
Total Assets Turnover |
1.02 |
Satisfactory |
Industrial Average |
1.19 |
|
Inventory Conversion Period |
110.63 |
|
|
|
|
Inventory Turnover |
3.30 |
Acceptable |
Industrial Average |
5.78 |
|
Receivables Conversion Period |
99.76 |
|
|
|
|
Receivables Turnover |
3.66 |
Impressive |
Industrial Average |
3.00 |
|
Payables Conversion Period |
38.32 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.42 |
|
UK Pound |
1 |
Rs.76.72 |
|
Euro |
1 |
Rs.65.85 |
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.