MIRA INFORM REPORT
|
Report Date : |
31.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
HIANG
SENG FIBRE CONTAINER CO., LTD. |
|
|
|
|
Registered Office : |
389
Rimthangrodfai-Chongnonsee
Road, Klongtoey, Bangkok
10110, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
31.05.1968 |
|
|
|
|
Com. Reg. No.: |
0105511002819 [Former : 341/2511] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor &
Exporter of Paper & Paper
Container Products |
|
|
|
|
No. of Employees : |
1,500 Employees |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
Payment Behaviour : |
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 – June 30th,
2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
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
enjoyed solid growth from 2000 to 2007 - averaging more than 4% per year - as
it recovered from the Asian financial crisis of 1997-98. Thai exports - mostly
machinery and electronic components, agricultural commodities, and jewelry -
continue to drive the economy, accounting for more than half of GDP. The global
financial crisis of 2008-09 severely cut Thailand's exports, with most sectors
experiencing double-digit drops. In 2009, the economy contracted 2.3%. In 2010,
Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports
rebounded from their depressed 2009 level. Steady economic growth at just below
4% during the first three quarters of 2011 was interrupted by historic flooding
in October and November in the industrial areas north of Bangkok, crippling the
manufacturing sector and leading to a revised growth rate of only 0.1% for the
year. The industrial sector is poised to recover from the second quarter of
2012 onward, however, and the government anticipates the economy will probably
grow between 5.5 and 6.5% for 2012, while private sector forecasts range
between 3.8% and 5.7%.
|
Source : CIA |
COMPANY NAME
HIANG
SENG FIBRE CONTAINER CO., LTD.
SUMMARY
ADDRESS : 389
RIMTHANGRODFAI-CHONGNONSEE ROAD,
KLONGTOEY, BANGKOK
10110,
THAILAND
TELEPHONE : [66] 2249-0251-4
FAX : [66] 2249-5713,
2249-9212
E-MAIL
ADDRESS : dullaphat@hsfc.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1968
REGISTRATION
NO. : 0105511002819 [Former : 341/2511]
TAX
ID NO. : 3101032505
CAPITAL REGISTRED : BHT.
950,000,000
CAPITAL PAID-UP :
BHT. 950,000,000
SHAREHOLDER’S PROPORTION : THAI :
82.62%
CHINESE :
17.38%
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS :
PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SARANYOO TEJAVIBULYA, THAI
MANAGING DIRECTOR
NO. OF STAFF : 1,500
LINES OF BUSINESS : PAPER
& PAPER CONTAINER
PRODUCTS
MANUFACTURER, DISTRIBUTOR
& 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 May
31, 1968 as a
private limited company
under the name “Siam Container
[Hiang Seng] Co.,
Ltd.,” by Tejavibulya
family. On September
9, 1968 subject’s
name was changed
to HIANG SENG
FIBRE CONTAINER CO., LTD.
It is one
of the major
paper manufacturers in Thailand.
It currently employs
approximate 1,500 staff.
The subject received the
promotional privilege from the Board of Investment
and achieved ISO 9002
in 2000 and
ISO 9001 : 2000 by BVQI
in 2002.
The subject’s registered
address is 389
Rimthangrodfai-Chongnonsee
Rd., Klongtoey, Bangkok
10110, and this
is the subject’s
current operation address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Saranyoo Tejavibulya |
[x] |
Thai |
46 |
|
Mr. Chotinond Tejavibulya |
|
Thai |
37 |
|
Ms. Wannaporn Tejavibulya |
|
Thai |
38 |
|
Mrs. Rapeepun Asawinvichit |
[x] |
Thai |
48 |
AUTHORIZED PERSON
One
of the mentioned
directors [x] can jointly sign
with one of
the rest directors
on behalf of the
subject with company’s affixed.
MANGEMENT
Mr. Saranyoo Tejavibulya is
the Managing Director.
He is Thai
nationality with the
age of 46
years old.
Mr. Somboon Peeratanakul
is the Marketing
Manager.
He is Thai
nationality.
Mr. Songyos Triwatanachaikul is
the Sales Manager.
He is Thai
nationality.
Mr. Samrej Siew-Sakul
is the Factory Manager [Samrong
Factory].
He is Thai
nationality.
Mr. Withaya Kongsuwan is
the Factory Manager [Wangnoi
Factory].
He is Thai
nationality.
Mr. Sarawuth Patrasothorn is
the Factory Manager [Ekachai
Factory].
He is Thai
nationality.
Mr. Veerachai Sirivongrangsan is the Factory
Manager [Paper Factory].
He is Thai
nationality.
Mr. Metha Lahfie is
the Engineering Manager.
He is Thai
nationality.
Mr. Kittiphum Suthes is
the Quality Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is manufacturer wide
range of paper and
paper container products
as follows:
1. Kraft Liner
Paper:
Used
in the production of
corrugated board cartons.
2. Extensible Sack
Kraft Paper:
Used
for manufacture of cement, animal
food, plastics and chemicals sack
industries.
3. Corrugated Medium
Paper:
Used
in the manufacture
of corrugated board
between the exterior
Kraft Liner
Paper.
4. Corrugated Sheet
Board:
The
products are single,
double and triple walled corrugated board
sheeting.
5. Corrugated
Cartons:
Two
kinds of corrugated
carton or boxes,
slotted cartons, and
die cut cartons.
6. Multi-Wall Sack:
Three,
four and five
layer Multi-wall Sack
Kraft Paper Bags for
the cement, animal
food, plastics
and chemicals industries.
7. Gummed Paper
Tape:
This
product is primarily
used for sealing corrugated board cartons and
boxes.
8. Paste Value
Paper and Sub
Bag Paper Tape:
The paper used
to seal the
bass of multi-wall sack Kraft
paper bags (Sub
Paper
Tape). These products are
primarily used in
the manufacture of
cement sacks.
PRODUCTION
300,000 tons per
annum
PURCHASE
50%
of raw materials,
paper pulp are imported
from United States of
America, Germany, Japan, Taiwan,
Vietnam and Singapore, the
remaining is purchased
from local suppliers
and agents.
MAJOR SUPPLIERS
Panjapol Pulp Industry
Public Co., Ltd. : Thailand
Panjapol Paper Industry
Co., Ltd. : Thailand
Cellmark Inc. : U.S.A.
Martin Lohse GmbH. : Germany
SALES
90%
of the products is
sold directly to wholesalers in
local markets around
400 customers. The remaining
10% is exported
to overseas customers
in Asian countries
of over 50
customers in Singapore,
Hong Kong, India, Japan,
Korea, Indonesia, Philippine,
Republic of China,
Vietnam and Taiwan.
MAJOR CUSTOMERS
Procter and Gamble
Manufacturing [Thailand] Ltd.
Business Type : Manufacturer
& distributor of consumer
products
Unilever Thai Holdings
Ltd.
Business Type : Manufacturer of
consumer products
Siam City Cement Public Co., Ltd.
Business Type : Manufacturer of
cement
Jalaprathan Cement Public
Co., Ltd.
Business Type : Manufacturer of
cement
Pepsi - Cola Thai Trading
Co., Ltd.
Business Type : Distributor of
soft drink concentrate
Beer Thai [1991]
Co., Ltd.
Business Type : Distributor of
beer products
Thai President Foods
Co., Ltd.
Business Type : Manufacturer
of consumer products
Colgate-Palmolive [Thailand] Co., Ltd.
Business Type : Manufacturer of
consumer products
Thai Preserved Food
Factory Co., Ltd.
Business Type : Manufacturer of
consumer products
Saha Pathanapibul Public Co., Ltd.
Business Type : Manufacturer
of consumer products
Malee Sampran Public
Co., Ltd.
Business Type : Manufacturer
of fruit juice
Boonrawd Brewery Co., Ltd.
Business Type : Manufacturer of
beer
Carlsberg Brewery [Thailand]
Ltd.
Business Type :
Manufacturer of beer
The Red Bull
Beverage Co., Ltd.
Dole [Thailand] Ltd.
Dutch Mill Group
Nestle Group
Lion [Thailand] Co.,
Ltd.
Thai Vegetable Oil
Public Company Limited
etc.
AFFILIATED COMPANIES
Panjapol Pulp Industry
Public Co., Ltd.
Business Type: Manufacturer
of paper pulp
Address : 44th Floor
UCB Building, 323
Silom Rd., Bangrak,
Bangkok 10500
Panjapol Paper Industry
Co., Ltd.
Business Type : Manufacturer
of paper pulp
Address : 44th Floor
UCB Building 323
Silom Rd., Bangrak,
Bangkok 10500
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
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the credits
term of 30-60 days.
Imports are by
L/C at sight
& T/T.
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 30-60
days, and the
remaining to overseas
customers by L/C
at sight &
T/T. The subject
is not found to have any problem
on its account
receivable.
BANKING
Kasikornbank Public Co., Ltd.
[Head Office : 1 Kasikorn Lane,
Rajburana Rd., Rajburana, Bangkok]
The Siam Commercial
Bank Public Co., Ltd.
[Head Office : 9 Ratchadapisek
Rd., Jatujak Bangkok]
TMB Bank Public
Co., Ltd.
[Head Office : 3000
Phaholyothin Rd., Jatujak,
Bangkok]
Krung Thai Bank
Public Co., Ltd.
[Head Office : 35
Sukhumvit Rd., Klongtonnue,
Wattana, Bangkok]
EMPLOYMENT
The subject employs
approximately 1,500 staff.
[office, sales staff
and factories workers]
LOCATION DETAILS
The premise is
owned for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Paper Container
Factories:
1)
183 Moo 8,
Poochaosamingprai Rd., T.
Somrongtai, A. Phrapradaeng,
Samutprakarn 10130.
Tel :
[66] 2384-0020, 2384-0111,
2384-2453-67
Fax : [66]
2384-2468
Area : 160,000
square meters
2)
38/4 Moo
1, Ekachai Rd.,
T. Klongblur, A. Muang,
Samutprakarn 74000.
Tel : [66]
34 823-141-5
Fax : [66]
34 824-610, 34
824-612
Area :
160,000 square meters
3)
38/8 Moo 1,
Ekachai Rd., T.
Klongblur, A. Muang,
Samutprakarn 74000.
Tel : [66]
34 823-141-5
Fax : [66]
34 824-610
Area : 192,000
square meters
4)
72 Moo
22, Poochasamingprai Rd.,
T. Samrongtai, A.
Phrapradaeng,
Samutprakarn 10130.
Tel : [66]
2384-0111
Fax : [66]
2384-2468
Area : 48,000
square meters
5)
110/4 Moo
4, Sethakij Rd.,
T. Bankoh, A. Muang,
Samutprakarn 74000.
Tel : [66]
34 468-019, 34
425-568
Fax : [66]
34 424-680
6)
79 Moo 1, T.
Sanabthub, A. Wangnoi, Phranakorn
Sriayutthaya 13170.
Rolled Paper Factory
7) 110/4
Moo 4, Sethakij
Rd., T. Bankoh, A. Muang,
Samutsakorn 74000.
COMMENT
The
company is one
of the leading
manufacturers of paper boxes
with an upstream
production facilities. Its
performance in the
past year was
played an important
role in the
packaging industry due to the recovery
in consumer products
sector as well
as demand from industrial
sector was considerably
higher.
The subject had
been enjoying an
outstanding performance in
the past several
years, as well as
current economy recovery
is resulting to a
rising demand of
paper box and
cartons by industrial
goods.
FINANCIAL INFORMATION
The capital was
originally registered at
Bht. 10,000,000 divided into 1,000
shares of Bht.
10,000 each.
The capital was
increased later as
followings:
Bht. 180,000,000
on December 25,
1982
Bht. 320,000,000
on June 10,
1988
Bht. 400,000,000
on March 1,
1991
Bht. 650,000,000
on August 19,
1999
Bht. 750,000,000
on June 19,
2003
Bht. 850,000,000
on June 3,
2004
Bht. 950,000,000
on November 2,
2005
The latest registered
capital was increased
to Bht. 950,000,000 divided into 95,000
shares of Bht. 10,000
each with fully
paid.
MAIN SHAREHOLDERS
[as of
June 12, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
City Bright Investment
Ltd. Nationality : Chinese Address : 9
Black’s Link, Hong
Kong |
11,245 |
11.83 |
|
Mrs. Nartnapa Tejavibulya Nationality: Thai Address : 190
Sukhumvit 53 Rd.,
Klongtonnua,
Wattana, Bangkok |
9,500 |
10.00 |
|
Mr. Kris Tejavibulya Nationality: Thai Address : 95 Sukhumvit 55
Rd., Klongtonnua,
Wattana, Bangkok |
9,000 |
9.47 |
|
Mr. Suthas Tejavibulya Nationality: Thai Address : 389 Rimthangrodfai-Chongnonsee Klongtoey, Bangkok
10110 |
8,908 |
9.38 |
|
Mr. Saranyoo Tejavibulya Nationality: Thai Address : 96 Sukhumvit 1
Rd., Klongton,
Klongtoey, Bangkok |
6,345 |
6.68 |
|
Mr. Prasert Tejavibulya Nationality: Thai Address : 33
Sukhumvit 59 Rd.,
Klongtonnua,
Wattana, Bangkok |
6,154 |
6.47 |
|
|
|
|
|
Ms. Wannaporn Tejavibulya Nationality: Thai Address : 95 Sukhumvit 55
Rd., Klongtonnua,
Wattana, Bangkok |
5,845 |
6.15 |
|
Mr. Krisakorn Tejavibulya Nationality: Thai Address : 391
Rimthangrodfai-Chongnonsee,
Klongtoey, Bangkok 10110 |
5,768 |
6.07 |
|
Midway Sign Ltd. Nationality: Chinese Address : Unit
905, 9/F WAI
Wah Commercial Centre,
6 Wilmer Street,
Sheung Wan, Hong Kong |
5,262 |
5.54 |
|
Mr. Chotinond Tejavibulya Nationality: Thai Address : 25
Sukhumvit 26 Rd.,
Klongton, Klongtoey, Bangkok |
5,221 |
5.50 |
|
Mr. Chotiwit Tejavibulya Nationality: Thai Address : 26
Sukhumvit 26 Rd.,
Klongton,
Klongtoey, Bangkok |
5,220 |
5.50 |
|
Others |
16,532 |
17.41 |
Total Shareholders :
26
Share Structure [as
at June 12,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
24 |
78,493 |
82.62 |
|
Foreign-Chinese |
2 |
16,507 |
17.38 |
|
Total |
26 |
95,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Pratheep Sangthamarak No.
2540
BALANCE SHEET [BAHT]
The
latest financial figures published
as at December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash
in hand &
at Equivalent |
282,413,148.44 |
274,811,308.96 |
|
Trade
Accounts Receivable |
1,656,025,552.36 |
1,728,826,119.86 |
|
Inventories |
661,139,164.26 |
424,901,023.00 |
|
Other
Current Assets |
270,242,803.51 |
205,085,353.20 |
|
|
|
|
|
Total
Current Assets |
2,869,820,668.57 |
2,633,623,805.02 |
|
Fixed Assets |
4,882,605,803.46 |
5,109,765,734.14 |
|
Other
Non-current Assets |
320,119,405.37 |
309,858,774.95 |
|
Total
Assets |
8,072,545,877.40 |
8,053,248,314.11 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Bank
Overdraft |
301,193,388.76 |
259,245,625.00 |
|
Machinery
Payable |
72,025,843.47 |
70,120,995.24 |
|
Trade
Accounts Payable |
1,843,571,235.01 |
1,527,381,949.27 |
|
Accrued
Income Tax |
37,205,364.28 |
93,296,281.78 |
|
Other
Current Liabilities |
315,601,945.56 |
768,636,464.59 |
|
|
|
|
|
Total Current Liabilities |
2,569,597,777.08 |
2,718,681,315.88 |
|
Long-term
Loan |
616,916,121.50 |
1,660,709,545.30 |
|
Machinery
Payable over 1 Year |
450,161,515.93 |
508,377,209.83 |
|
Total
Liabilities |
3,636,675,414.51 |
4,887,768,071.01 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share
capital : Baht 10,000 par
value
Authorized & issued
share capital
95,000 shares |
950,000,000.00 |
950,000,000.00 |
|
|
|
|
|
Capital
Paid |
950,000,000.00 |
950,000,000.00 |
|
Retained
Earning - Unappropriated
|
3,485,870,462.89 |
2,215,480,243.10 |
|
Total Shareholders' Equity |
4,435,870,462.89 |
3,165,480,243.10 |
|
Total Liabilities & Shareholders' Equity |
8,072,545,877.40 |
8,053,248,314.11 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
6,957,670,998.34 |
7,173,879,145.93 |
|
Other
Income |
1,059,232,179.99 |
184,283,353.36 |
|
Total
Revenues |
8,016,903,178.33 |
7,358,162,499.29 |
|
Expenses |
|
|
|
|
|
|
|
Cost
of Goods Sold
|
6,297,465,666.26 |
6,577,485,085.66 |
|
Selling
Expenses |
140,946,882.67 |
145,592,788.73 |
|
Administrative Expenses |
165,567,973.78 |
189,653,659.58 |
|
Total Expenses |
6,603,980,522.71 |
6,912,731,533.97 |
|
|
|
|
|
Profit / [Loss] before Financial
Cost &
Income Tax |
1,412,922,655.62 |
445,430,965.32 |
|
Financial
Cost |
[39,386,766.86] |
[49,904,551.57] |
|
|
|
|
|
Profit / [Loss] before Income
Tax |
1,373,535,888.76 |
395,526,413.75 |
|
Income
Tax |
[103,145,668.97] |
[120,953,333.54] |
|
Net
Profit / [Loss] |
1,270,390,219.79 |
274,573,080.21 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.12 |
0.97 |
|
QUICK RATIO |
TIMES |
0.75 |
0.74 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.42 |
1.40 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.86 |
0.89 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
38.32 |
23.58 |
|
INVENTORY TURNOVER |
TIMES |
9.53 |
15.48 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
86.88 |
87.96 |
|
RECEIVABLES TURNOVER |
TIMES |
4.20 |
4.15 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
106.85 |
84.76 |
|
CASH CONVERSION CYCLE |
DAYS |
18.34 |
26.78 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
90.51 |
91.69 |
|
SELLING & ADMINISTRATION |
% |
4.41 |
4.67 |
|
INTEREST |
% |
0.57 |
0.70 |
|
GROSS PROFIT MARGIN |
% |
24.71 |
10.88 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
20.31 |
6.21 |
|
NET PROFIT MARGIN |
% |
18.26 |
3.83 |
|
RETURN ON EQUITY |
% |
28.64 |
8.67 |
|
RETURN ON ASSET |
% |
15.74 |
3.41 |
|
EARNING PER SHARE |
BAHT |
13,372.53 |
2,890.24 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.45 |
0.61 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.82 |
1.54 |
|
TIME INTEREST EARNED |
TIMES |
35.87 |
8.93 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(3.01) |
|
|
OPERATING PROFIT |
% |
217.20 |
|
|
NET PROFIT |
% |
362.68 |
|
|
FIXED ASSETS |
% |
(4.45) |
|
|
TOTAL ASSETS |
% |
0.24 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
24.71 |
Impressive |
Industrial
Average |
7.37 |
|
Net Profit Margin |
18.26 |
Impressive |
Industrial
Average |
1.22 |
|
Return on Assets |
15.74 |
Impressive |
Industrial
Average |
1.31 |
|
Return on Equity |
28.64 |
Impressive |
Industrial
Average |
2.31 |
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 24.71%. 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 18.26%, 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
15.74%, 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 28.64%, 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.
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 |
1.12 |
Satisfactory |
Industrial
Average |
1.16 |
|
Quick Ratio |
0.75 |
|
|
|
|
Cash Conversion Cycle |
18.34 |
|
|
|
The Current Ratio is to ascertain whether a company's short-term assets
are readily available to pay off its short-term liabilities. The company's
figure is 1.12 times in 2011, increased from 0.97 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 0.75 times in 2011,
increased from 0.74 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 19 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.45 |
Impressive |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
0.82 |
Impressive |
Industrial
Average |
1.03 |
|
Times Interest Earned |
35.87 |
Impressive |
Industrial
Average |
1.81 |
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 35.88 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 0.45 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 |
1.42 |
Acceptable |
Industrial
Average |
1.93 |
|
Total Assets Turnover |
0.86 |
Satisfactory |
Industrial
Average |
1.13 |
|
Inventory Conversion Period |
38.32 |
|
|
|
|
Inventory Turnover |
9.53 |
Impressive |
Industrial
Average |
5.10 |
|
Receivables Conversion Period |
86.88 |
|
|
|
|
Receivables Turnover |
4.20 |
Satisfactory |
Industrial
Average |
4.75 |
|
Payables Conversion Period |
106.85 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.54.84 |
|
UK Pound |
1 |
Rs.88.39 |
|
Euro |
1 |
Rs.72.62 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.