MIRA INFORM REPORT
|
Report Date : |
29.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
SAHAVIRIYA
STEEL INDUSTRIES PUBLIC
COMPANY LIMITED |
|
|
|
|
Registered Office : |
2nd - 3rd Floor, 28/1 Prapawit Building, Surasak Road, Silom, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
30.06.2011 |
|
|
|
|
Date of Incorporation : |
13.03.1990 |
|
|
|
|
Com. Reg. No.: |
0107537000688 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor and Exporter of Hot Rolled Steel Sheet |
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 : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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
SAHAVIRIYA STEEL
INDUSTRIES PUBLIC COMPANY
LIMITED
SUMMARY
BUSINESS
ADDRESS : 2nd - 3rd FLOOR,
28/1 PRAPAWIT BUILDING,
SURASAK ROAD,
SILOM, BANGRAK,
BANGKOK 10500
TELEPHONE : [66]
2238-3063-82
FAX :
[66] 2236-8890,
2236-8892
E-MAIL
ADDRESS : president@ssi-steel.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1990
REGISTRATION
NO. : 0107537000688 [Former : BOR. MOR. JOR. 315]
CAPITAL
REGISTERED : BHT.
20,434,108,235
CAPITAL
PAID-UP : BHT.
18,184,978,000
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
WIN VIRIYAPRAPAIKIT, THAI
PRESIDENT
NO.
OF STAFF : 1,200
LINES
OF BUSINESS : HOT
ROLLED STEEL SHEET
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
FOR NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT
WITH GOOD PERFORMANCE
HISTORY
The subject was
established on March
13, 1990 as
a private limited
company under registered
name “Sahaviriya Steel
Industries Co., Ltd.”
by Thai groups.
On February 24, 1993,
its status was
converted into a
public limited company
under the name
SAHAVIRIYA STEEL INDUSTRIES
PUBLIC COMPANY LIMITED.
Eventually, it was
listed on the Stock Exchange of Thailand on
September 8, 1994. Subject
currently employs 1,200
staff.
In 1989, the
subject was granted
a promotional privilege
from the Board
of Investment to
invest in hot
and cold rolled
and galvanized steel
project in Thailand
with the total
investment estimated at
Bht. 13 billion.
The subject is the
first and sole hot
rolled steel sheet
and coil manufacturer
in Thailand. It is a also
a joint
venture between Thai and foreign shareholders
providing advanced technology
from Italy. The
hot rolled steel
production has been
started since February
1994.
The subject received for ISO
9002 certification from Thai
Industrial Standard Certification
Association. Besides, the
subject was awarded
ISO 14001 certification
for environmental management
system standards in
late 1999.
The subject’s registered
address is 2nd - 3rd Floor,
28/1 Prapawit Bldg.,
Surasak Rd., Silom,
Bangrak, Bangkok 10500,
and this is the
company’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality
|
Age
|
|
|
|
|
|
|
Mr. Wit Viriyaprapaikit |
[x] |
Thai |
77 |
|
Mrs. Kesree Narongdej |
|
Thai |
75 |
|
Dr. Tongchat Hongladaromp |
|
Thai |
73 |
|
Mr. Pratheep Buppa-in |
|
Thai |
72 |
|
Mr. Taveesak Senanarong |
|
Thai |
76 |
|
Mr. Kamol Juntima |
[x] |
Thai |
74 |
|
Mr. Somchai
Pipitvijitakorn |
|
Thai |
72 |
|
Mr. Permpoon Krailert |
|
Thai |
60 |
|
Mr. Piya Viriyaprapaikit |
[x] |
Thai |
62 |
|
Mr. Win Viriyaprapaikit |
[x] |
Thai |
41 |
|
Mr. Somchai Sakulsurarat |
[x] |
Thai |
63 |
|
Mr. Siripol Yodmuangcharoen |
|
Thai |
63 |
AUTHORIZED PERSON
Two of the
above mentioned directors
[x] can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Win Viriyaprapaikit is
the President.
He is Thai
nationality with the
age of 41
years old.
Mr. Nitipong Tejavanija is the
Vice President, Finance &
Accounting Division and
Secretary to the
Risk Management Committee.
He is Thai
nationality.
Mr. Kittisak Mapanao is
the Vice President, Manufacturing Division.
He is Thai
nationality.
Ms. Wanna Tangcharoenching is
the Vice President,
Commercial Division.
She is Thai
nationality.
Mr. Nava Chantanasurakon is
the Vice President,
HR & Administration Division,
Public Affairs and
Social Responsibility Division
and Secretary to the Remuneration
Committee.
He is Thai
nationality.
Mr. Jira Chotinuchit is
the Vice President,
Office of the
President.
He is Thai
nationality.
Mr.
Padungsak Pranudomrat is the
Office Manager, Public
& Community Relation
Office.
He is Thai
nationality.
Mrs. Pawadee Musikasiri is
the Assistant Vice
President, Legal Office.
She is Thai
nationality.
Mr. Padungkiet Taerungruang is
the Purchasing Department
Manager [Bangkok].
He is Thai
nationality.
Mr. Nimmit Chattuporn is
the Purchasing Department
Manager [Bangsaphan].
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
and distributor of
Hot Rolled Steel
Sheet in Coils
[HRC] with width
between 750 - 1,550 mm
and thickness between
1.0 - 19.0 mm, and
Hot-Rolled Coils Picked
and Oiled [HRC P/O]
with width between
750 - 1,550 mm, and
thickness between 1.2 - 6.5
mm, which are high
grade flat steels
used in high-end
markets including automotive
and appliances industries.
The products have
been served to various
manufacturing industries such
as pipe-makings, gas
containers, construction, tank,
electric appliances and
vessel industry and
serve as raw
materials in the production
of cold rolled
coils. The subject
also invested in
the downstream projects
in its subsidiary
companies.
PRODUCTION CAPACITY
Hot rolled steel
sheet in coils : 4
million tons per year
Hot rolled coils
picked and oiled :
1 million tons per
year
PURCHASE
80% of raw
materials such as
steel slab, steel
rod and steel
sheets are purchased
from local suppliers,
the remaining 20% are
imported from U.S.A.,
Japan, Brazil, United
Kingdom, Ukraine, Russia,
Argentina, Republic of China
and Netherlands.
MAJOR SUPPLIERS
Thai Cold Rolled
Steel Sheet Plc.
: Thailand
SALES [LOCAL]
95% of its products
is sold locally to manufacturers, wholesalers
and end-users in
various industries such
as steel, automobile,
home electric appliance,
steel pipe, steel
sheet, steel tank
and construction.
EXPORT [COUNTRIES]
5% of its
products is exported to
United States of
America, and the countries
in Europe, Middle
East and Africa.
SUBSIDIARIES, AFFILIATED AND
RELATED COMPANIES
Downstream Business:
Thai Cold Rolled
Steel Sheet Public
Co., Ltd.
Business Type : Manufacturer
of cold-rolled coils
Investment : The
subject holds 50.15%
of the company’s
shares.
Thai Coated Steel
Sheet Co., Ltd.
Business Type : Manufacturer
of electro-galvanized coils
Investment : The
subject holds 3.70%
of the company’s
shares.
Logistics:
Prachuap Port Co.,
Ltd.
Business Type : Provider
of deep sea port
Investment : The
subject holds 51.00%
of the company’s
shares.
Engineering Services:
West Coasting Engineering
Co. Ltd.
Business Type : Provider
of maintenance and
engineering services, and
engineering design
Investment : The
subject holds 99.99%
of the company’s
shares.
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.
CREDIT
Local bills are
paid by cash
or on the
credits term of
30-60-90 days.
Imports are by
L/C on the
credit term of
120 days or
T/T.
Sales are by
cash or on
the credits term
of 30-60-90 days.
Exports are against
T/T.
BANKING
Bangkok Bank
Public Co., Ltd.
[Head
Office : 333
Silom Road, Silom,
Bangrak, Bangkok]
Siam City
Bank Public Co.,
Ltd.
[Head
Office : 1101
New Petchaburi Road,
Makkasan, Rajthevee, Bangkok]
The Siam
Commercial Bank Public
Co., Ltd.
[Head
Office : 9
Ratchadapisek Road, Jatujak,
Bangkok]
Bank of
Ayudhya Public Co.,
Ltd.
[Head
Office : 1222
Rama III Road,
Bangpongpang, Yannawa, Bangkok]
EMPLOYMENT
The subject employs
approximately 1,200 staff.
LOCATION DETAILS
The premise is
owned for operating
administrative office at
the heading address.
Premise is located
in a prime
commercial area.
Factory is located
at 9 Moo 7,
Ban Klang Na-Yai
Ploy Rd., T.
Mae Rumphueng, A.
Bangsapan, Prachuabkirikhan 77140,
Thailand.
Tel.: [66] 32
691-403-5, 32 691-412-5,
32 691-419-20, Fax:
[66] 32 691-421
REMARK
MAXIMUM CREDIT SHOULD
BE GRANTED AT US$ 100,000,000.
COMMENT
The company
today is stronger
than ever. Over 20 years, it has
overcome several adversities,
gaining experience and strength with competitive edge over
its competitors through
a variety of strategic
and initiative. Although the
year 2009 witnessed global
and Thailand slowdown
in steel industry
continuing from the
previous year which resulted in
sluggish business and high
price volatility.
Since the
economy started recovering
in 2010, the
company has performed
remarkably and successfully
overcame all obstacles
caused from steel price
fluctuation and sluggish
market to an
outstanding performance.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 4,000,000,000 divided
into 40,000,000 shares
of Bht. 100
each.
The capital was
increased / decreased later as
followings:
Bht.
4,320,000,000 on December
9, 1993
Bht.
5,800,000,000 in 1997
Bht.
15,680,000,000 on May
7, 1998
Bht.
23,881,500,000 in 1999
Bht.
13,101,500,000 in 2000
[Decreased]
The latest registered
capital was increased
to Bht. 20,434,108,235 divided
into 20,434,108,235 shares
of Bht. 1
each with the
current capital paid-up
at Bht. 18,184,978,000.
MAIN SHAREHOLDERS : [as at August
30, 2011] at
Bht. 18,184,978,000 of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Sahaviriya Group Co.,
Ltd. |
5,676,692,800 |
31.22 |
|
Citibank Nominees Singapore
Pte. Ltd.-UBS AG Zurich |
2,176,071,160 |
11.97 |
|
Six Sis Ltd. |
1,475,901,200 |
8.11 |
|
Sahaviriya Inter Steel
Holdings Ltd. |
1,082,381,366 |
5.95 |
|
The Bank of
New York [Nominees]
Limited A/C 5100 |
761,380,760 |
4.19 |
|
Thai NVDR Co.,
Ltd. |
480,945,628 |
2.64 |
|
Credit Suisse AG |
308,196,000 |
1.69 |
|
Mrs. Sirikul Viriyaprapaikit Bendi |
288,700,140 |
1.59 |
|
Mr. Vithit Pongpeerodom |
217,500,000 |
1.20 |
|
Ms. Sumal Limpiyachart |
209,542,400 |
1.15 |
|
Mr. Komol Juengrungruangkit |
186,546,600 |
1.03 |
|
Others |
5,321,119,946 |
29.26 |
Total Shareholders : 16,565
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Thipawan Nananuwat No.
3459
BALANCE SHEET [BAHT]
The latest financial figures published as at December 31, 2010 & 2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and cash equivalents |
58,335,112 |
28,057,682 |
|
Trade accounts and
notes receivable Related parties |
2,514,892,812 |
2,786,715,800 |
|
Others companies |
687,470,433 |
339,215,993 |
|
Less: Allowance
for doubtful accounts |
[283,808,960] |
[283,808,960] |
|
|
|
|
|
Trade accounts and notes
receivable - Net |
2,918,554,285 |
2,842,122,833 |
|
Amounts due from
and advances paid
to related parties |
1,508,016 |
3,724,992 |
|
Inventories |
14,204,919,771 |
14,186,495,785 |
|
Other Current Assets
Input tax
refundable |
366,246,079 |
473,517,006 |
|
Deferred income
from related parties |
12,236,644 |
7,015,136 |
|
Undue input vat |
25,379,027 |
5,168,425 |
|
Others |
27,952,535 |
26,680,096 |
|
|
|
|
|
Total Current Assets
|
17,615,131,469 |
17,572,781,955 |
|
Non-Current Assets |
|
|
|
Advance to
related parties |
381,622,272 |
- |
|
Investments in
subsidiary companies |
325,651,337 |
278,999,930 |
|
Investment in
jointly controlled entity |
4,502,797,025 |
4,502,797,025 |
|
Fixed assets
|
18,100,614,309 |
18,941,579,429 |
|
Intangible assets |
44,656,167 |
47,421,871 |
|
Other non-current
assets |
6,456,179 |
6,506,179 |
|
Total Non-Current
Assets |
23,361,797,289 |
23,777,304,434 |
|
Total Assets |
40,976,928,758 |
41,350,086,389 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank overdraft &
short-term loan from financial
institutions |
12,562,950,796 |
12,905,530,469 |
|
Trade accounts payable |
|
|
|
Related parties |
38,556,761 |
36,837,077 |
|
Other companies |
3,104,488,906 |
3,721,088,102 |
|
|
|
|
|
Total trade accounts
payable |
3,143,045,667 |
3,757,925,179 |
|
Amounts due to
and advances received from related
parties |
69,883,622 |
85,888,480 |
|
Current portion of
long-term loan |
1,811,800,000 |
1,698,400,000 |
|
Current Portion of
liabilities under hire-purchase agreement |
2,184,696 |
917,094 |
|
Estimated liabilities |
11,835,195 |
11,835,195 |
|
Other Current Liabilities: Accrued interest |
43,108,234 |
51,577,339 |
|
Accrued expenses |
87,988,582 |
91,859,952 |
|
Other payable |
49,216,161 |
17,184,468 |
|
Advances received
from sales of goods and provision of services |
232,546,606 |
130,284,768 |
|
Others |
21,920,210 |
16,034,646 |
|
|
|
|
|
Total Current Liabilities |
18,036,479,769 |
18,767,437,590 |
|
Non-current liabilities |
|
|
|
Long-term loan, net of current portion |
4,185,050,000 |
5,685,200,000 |
|
Liabilities under
hire-purchase agreement, net of
current portion |
2,321,261 |
301,857 |
|
Total Non-current liabilities |
4,187,371,261 |
5,685,501,857 |
|
Total Liabilities |
22,223,851,030 |
24,452,939,447 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
|
2010 |
2009 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
Share capital |
|
|
|
Registered 13,101,500,000 ordinary
shares of Baht 1 each |
13,101,500,000 |
13,101,500,000 |
|
Issued and
fully paid-up |
|
|
|
13,101,500,000 ordinary
shares of Baht 1 each |
13,101,280,000 |
13,101,280,000 |
|
Premium [discount] on share
capital |
|
|
|
Discount on
share capital |
[2,171,280,000] |
[2,171,280,000] |
|
Revaluation surplus
on assets |
6,054,479,680 |
6,407,640,215 |
|
Retained earning Appropriated-statutory Reserve |
530,226,819 |
441,796,917 |
|
Unappropriated |
1,238,371,229 |
[882,290,190] |
|
Total Shareholders' Equity |
18,753,077,728 |
16,897,146,942 |
|
Total Liabilities &
Shareholders' Equity |
40,976,928,758 |
41,350,086,389 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sale from sales |
47,784,950,101 |
33,187,804,166 |
|
Other Income |
|
|
|
Gain on exchange
rate |
188,996,343 |
169,666,963 |
|
Dividend |
25,500,000 |
- |
|
Others |
39,251,867 |
51,947,706 |
|
Total Sales |
48,038,698,311 |
33,409,418,835 |
|
Expenses |
|
|
|
|
|
|
|
Cost of sales
|
44,151,747,663 |
35,739,748,807 |
|
Record [reversal] of
allowance for diminution in value
of Inventories |
4,875,322 |
[5,373,237,036] |
|
|
|
|
|
|
44,156,622,985 |
30,366,511,771 |
|
Selling expenses |
504,371,595 |
292,813,420 |
|
Administrative expenses |
285,520,335 |
155,516,393 |
|
Remuneration expenses |
59,846,691 |
51,665,545 |
|
Other expenses Damage from
litigation |
- |
11,835,195 |
|
Total Expenses |
45,006,361,606 |
30,878,342,324 |
|
|
|
|
|
Profit / [Loss] before income
tax |
3,032,336,705 |
2,531,076,511 |
|
Income tax |
[823,245,384] |
[982,883,658] |
|
|
|
|
|
Net Profit / [Loss] |
2,209,091,321 |
1,548,192,853 |
BALANCE SHEET
[BAHT]
The latest financial figures published as at June 30, 2011 was : [unaudited]
ASSETS
[ Thousand Baht ]
|
Current Assets |
June 30,
2011 |
|
|
|
|
Cash and cash equivalents |
26,566 |
|
Trade accounts receivable |
3,191,341 |
|
Other accounts receivable from related parties |
332,934 |
|
Inventories |
12,102,473 |
|
Other Current Assets
|
353,390 |
|
|
|
|
Total Current Assets
|
16,006,704 |
|
Non-Current Assets |
|
|
Investments in
subsidiary companies |
12,523,350 |
|
Investment in
jointly controlled entity |
4,502,797 |
|
Property, plant
and equipment |
17,769,592 |
|
Intangible assets |
42,440 |
|
Other non-current
assets |
6,780 |
|
Total Non-Current
Assets |
34,844,959 |
|
Total Assets |
50,851,663 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
[ Thousand Baht ]
|
Current
Liabilities |
June 30,
2011 |
|
|
|
|
Bank overdraft &
short-term loan from
financial institutions |
12,509,370 |
|
Trade accounts payable |
1,834,401 |
|
Other accounts payable
from related parties |
21,501 |
|
Current portion of
long-term loan from financial
institutions |
1,421,682 |
|
Current Portion of
hire-purchase agreement |
3,265 |
|
Short-term provisions |
11,835 |
|
Other Current Liabilities
|
159,147 |
|
|
|
|
Total Current Liabilities |
15,961,201 |
|
Non-current liabilities |
|
|
Long-term loan, net of current portion |
10,102,406 |
|
Hire-purchase agreement,
net of current portion |
3,798 |
|
Employee benefit
obligations |
89,905 |
|
Total Non-current liabilities |
10,196,109 |
|
Total Liabilities |
26,157,310 |
|
|
|
|
Shareholders' Equity |
|
|
Share capital |
|
|
Authorised share
capital |
18,341,792 |
|
Issued and
paid-up share capital
|
18,184,108 |
|
Discount on ordinary
shares issuance |
[1,238,242] |
|
Unrealised fair value changes and
assets revaluation differences |
5,915,037 |
|
Retained earning Appropriated-statutory Reserve |
530,227 |
|
Unappropriated |
1,303,223 |
|
Total Shareholders' Equity |
24,694,353 |
|
Total Liabilities &
Shareholders' Equity |
50,851,663 |
PROFIT
& LOSS ACCOUNT
For the
six-month periods ended
June 30, 2011.
[ Thousand Baht ]
|
Sale |
June 30,
2011 |
|
|
|
|
Sale from sales |
19,679,624 |
|
Dividend income |
43,930 |
|
Others income |
24,651 |
|
Total Sales |
19,748,205 |
|
Expenses |
|
|
|
|
|
Cost of sales
goods |
18,484,843 |
|
Selling expenses |
135,716 |
|
Administrative expenses |
179,829 |
|
Management benefit expenses |
22,747 |
|
Net foreign exchange
loss |
113,404 |
|
Finance costs |
660,515 |
|
Total Expenses |
19,597,054 |
|
|
|
|
Profit / [loss] before income
tax expense |
151,151 |
|
Income tax expense |
- |
|
|
|
|
Net Profit / [Loss] |
151,151 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.98 |
0.94 |
|
QUICK RATIO |
TIMES |
0.17 |
0.15 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.64 |
1.75 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.17 |
0.80 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
117.42 |
170.52 |
|
INVENTORY TURNOVER |
TIMES |
3.11 |
2.14 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
5.25 |
3.73 |
|
RECEIVABLES TURNOVER |
TIMES |
69.51 |
97.84 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
25.66 |
44.73 |
|
CASH CONVERSION CYCLE |
DAYS |
97.01 |
129.52 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
92.41 |
91.50 |
|
SELLING & ADMINISTRATION |
% |
1.65 |
1.35 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
8.12 |
9.17 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
6.35 |
7.63 |
|
NET PROFIT MARGIN |
% |
4.62 |
4.66 |
|
RETURN ON EQUITY |
% |
11.78 |
9.16 |
|
RETURN ON ASSET |
% |
5.39 |
3.74 |
|
EARNING PER SHARE |
BAHT |
0.17 |
0.12 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.54 |
0.59 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.19 |
1.45 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
43.98 |
|
|
OPERATING PROFIT |
% |
19.80 |
|
|
NET PROFIT |
% |
42.69 |
|
|
FIXED ASSETS |
% |
(4.44) |
|
|
TOTAL ASSETS |
% |
(0.90) |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
8.12 |
Acceptable |
Industrial
Average |
13.13 |
|
Net Profit Margin |
4.62 |
Impressive |
Industrial
Average |
(6.46) |
|
Return on Assets |
5.39 |
Impressive |
Industrial
Average |
(1.65) |
|
Return on Equity |
11.78 |
Impressive |
Industrial
Average |
(8.33) |
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 8.12%. When
compared with the industry average, the ratio of the company was lower, this
indicated that company was originated from the problem 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 4.62%,
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
5.39%, 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 11.78%, 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 |
0.98 |
Risky |
Industrial
Average |
20.66 |
|
Quick Ratio |
0.17 |
|
|
|
|
Cash Conversion Cycle |
97.01 |
|
|
|
The Current Ratio is to ascertain whether a company's short-term assets
are readily available to pay off its short-term liabilities. The company's
figure is 0.98 times in 2010, increase from 0.94 times, then the company may
have problems meeting its short-term obligations. When compared with the industry
average, the ratio of the company was lower.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 0.17 times in 2010,
increase from 0.15 times, then the company has not enough current assets that
presumably can be quickly converted to cash for pay financial obligations.
The Cash Conversion Cycle measures the number of days a company's cash
is tied up in the production and sales process of its operations and the
benefit from payment terms from its creditors. It meant the company could
survive when no cash inflow was received from sale for 98 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.54 |
Impressive |
Industrial
Average |
0.95 |
|
Debt to Equity Ratio |
1.19 |
Satisfactory |
Industrial
Average |
2.25 |
|
Times Interest Earned |
- |
|
Industrial
Average |
81.13 |
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.54 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 Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.64 |
Deteriorated |
Industrial Average |
62.51 |
|
Total Assets Turnover |
1.17 |
Acceptable |
Industrial Average |
1.66 |
|
Inventory Conversion Period |
117.42 |
|
|
|
|
Inventory Turnover |
3.11 |
Deteriorated |
Industrial Average |
12.67 |
|
Receivables Conversion Period |
5.25 |
|
|
|
|
Receivables Turnover |
69.51 |
Impressive |
Industrial Average |
14.78 |
|
Payables Conversion Period |
25.66 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.91 |
|
UK Pound |
1 |
Rs.76.53 |
|
Euro |
1 |
Rs.66.43 |
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.