MIRA
INFORM REPORT
|
Report Date : |
21.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
N.T.S.
STEEL GROUP PUBLIC
COMPANY LIMITED |
|
|
|
|
Registered Office : |
22nd Floor, Shinawatra 3 Building, 1010 Vibhavadee Rangsit Road, Jatujak, Bangkok 10900 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
04.10.1988 |
|
|
|
|
Com. Reg. No.: |
0107536001273 [ Former : BOR.MOR.JOR.201] |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
engaged in manufacturing various kinds of steel products, including round and deformed bar, low & high carbon steel wire rod, under its own brand name “NTS”. |
|
|
|
|
No. of Employees : |
590 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
--- |
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 – September 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
THAILAND - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise economy,
generally pro-investment policies, and strong export industries, Thailand
achieved steady growth due largely to industrial and agriculture exports -
mostly electronics, agricultural commodities, automobiles and parts, and
processed foods. Thailand is trying to maintain growth by encouraging domestic
consumption and public investment to offset weak exports in 2012. Unemployment,
at less than 1% of the labor force, stands as one of the lowest levels in the
world, which puts upward pressure on wages in some industries. Thailand also
attracts nearly 2.5 million migrant workers from neighboring countries. The
Thai government is implementing a nation-wide 300 baht ($10) per day minimum
wage policy and deploying new tax reforms designed to lower rates on middle-income
earners. The Thai economy has weathered internal and external economic shocks
in recent years. The global economic severely cut Thailand's exports, with most
sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%.
However, in 2010, Thailand's economy expanded 7.8%, its fastest pace since
1995, as exports rebounded. In late 2011 growth was interrupted by historic
flooding in the industrial areas in Bangkok and its five surrounding provinces,
crippling the manufacturing sector. Industry recovered from the second quarter
of 2012 onward with GDP growth at 5.5% in 2012. The government has approved
flood mitigation projects worth $11.7 billion, which were started in 2012, to
prevent similar economic damage, and an additional $75 billion for
infrastructure over the next seven years with a plan to start in 2013.
Source
: CIA
Company name
N.T.S. STEEL GROUP
PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 22nd FLOOR,
SHINAWATRA 3 BUILDING,
1010
VIBHAVADEE RANGSIT ROAD,
JATUJAK,
BANGKOK 10900, THAILAND
TELEPHONE : [66]
2949-2949
FAX :
[66] 2949-2889
E-MAIL
ADDRESS : marketing@nts.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1988
REGISTRATION
NO. : 0107536001273 [ Former : BOR.MOR.JOR.201]
TAX
ID NO. : 311561128
CAPITAL
REGISTERED : BHT.
4,627,965,356.40
CAPITAL
PAID - UP : BHT.
4,627,965,356.40
SHAREHOLDER’S PROPORTION : THAI :
0.23%
FOREIGN :
99.77%
FISCAL
YEAR CLOSING DATE : MARCH
31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
RAJIV MANGAL, INDIAN
PRESIDENT AND
CHIEF EXECUTIVE OFFICER
NO.
OF STAFF : 590
LINES
OF BUSINESS : ROUND
AND DEFORMED BARS
AND WIRE ROD MANUFACTURER AND
DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING
NORMALLY
REPUTATION : FAIR
FOR NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The
subject was established
on October 4,
1988 as a
private limited company
under the initial
registered name “N.T.S.
Steel Group Co.,
Ltd.”.
On July 13, 1990 the subject
was granted promotion privilege from the Board of Investment
for 7 years after
starting production of
steel products.
The
subject was listed
on the Stock
Exchange of Thailand
on December 4,
1992 and finally
converted its status
into a public
limited company under
the name N.T.S.
STEEL GROUP PUBLIC
COMPANY LIMITED on
October 22, 1993.
However, its name was
listed out of
the Stock Exchange
of Thailand in
2002.
In
October 1993, the
subject was seriously
affected by the
economic crisis within
the nation in
the year 1997
and subsequently underwent
the debt restructuring
under the Corporate
Debt Restructuring Advisory
Committee and the
business reorganization under
the Central Bankruptcy
Court on October
2, 2000. Later,
with respect to
the approval of
the creditors of
NTS and the
order of Central
Bankruptcy Court dated
July 19, 2002,
the steel business
merger between NTS and the
other 2 companies
of Siam Cement
group, namely “The
Siam Iron and
Steel [2001] Ltd.”
and “The Siam
Construction Steel Co.,
Ltd.” was initiated,
and set up
the new company
under the name “Millennium Steel
Public Co., Ltd.”,
in order to
invest in the
3 companies.
In
December 2006, “Millennium
Steel Public Co.,
Ltd.” had been
changed the name
to “Tata Steel
[Thailand] Public Co.,
Ltd.” . Presently, the
subject is a
subsidiary of Tata
Steel [Thailand] Public
Company Limited, with
holding around 79%
of investment, and
are also a
member of Tata
Steel Limited in
India.
It
achieved the 9001:2000
certificate for the
products quality management in
2004.
After
the subject was
stopped its production
activity temporarily in
2000, its activities were re-started
again in January
2003. Subject currently employs
590 staff.
The
subject’s registered address
is 22nd Flr.,
Shinawatra 3 Bldg.,
1010 Vibhavadee Rangsit Rd.,
Jatujak, Bangkok 10900, and
this is the company’s
current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Rajiv Mangal |
[x] |
Indian |
46 |
|
Mr. Thana Ruangsilasingha |
[x] |
Thai |
58 |
|
Mr. Sirorote Metmanosak |
|
Thai |
51 |
|
Mr. Wanlert Karnviwat |
|
Thai |
48 |
|
Mr. Arun Kumar Chaudhary |
|
Indian |
54 |
AUTHORIZED PERSON
Both
of the mentioned
directors [x] can
jointly sign or
any of the mentioned directors
[x] can jointly
sign with anyone
of the rest
directors on behalf
of the subject
with the company’s
affixed.
MANAGEMENT
Mr. Rajiv
Mangal is the
President and Chief
Executive Officer.
He
is Indian nationality
with the age
of 46 years
old.
Mr. Thana
Ruangsilasingha is the
Chief Operation Officer.
He
is Thai nationality
with the age
of 58 years
old.
Mr. Amit
Ghash is the
Chief Financial Officer.
He is
Indian
nationality.
Mr. Arun
Kumar Choudhary is
the Managing Director.
He
is Indian nationality
with the age
of 54 years
old.
Mr. Sirirote
Metmanosak is the
Vice President and
Human Resources Corporate
Affairs.
He
is Thai nationality
with the age
of 51 years
old.
BUSINESS OPERATIONS
The
subject’s activity is
a manufacturer various
kinds of steel
products, including round
and deformed bar, low & high carbon steel
wire rod, under
its own brand
name “NTS”.
PRODUCTION
CAPACITY
800,000
tons per annum
PURCHASE
[LOCAL]
100%
of raw material
is purchased locally
by Tata Steel
[Thailand] Public Co.,
Ltd., the parent
company.
SALES
[LOCAL]
100%
of its products
is sold locally
to Tata Steel
[Thailand] Public Co.,
Ltd.
PARENT
COMPANY
Tata
Steel [Thailand] Public
Co., Ltd.
Business
Type : Holding
company
Address :
1010 Vibhavadee Rangsit
Rd., Jatujak, Bangkok
10900.
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
Purchasing
terms are on
the credits of
30-60 days.
Selling
terms are on
the credits of
30-60 days.
BANKING
Kasikornbank
Public Co., Ltd.
[Head Office :
1 Kasikorn Lane, Rajburana
Rd., Rajburana, Bangkok]
Krung
Thai Bank Public
Co., Ltd.
[Head Office :
35 Sukhumvit Rd.,
Klongtoeynua, Wattana, Bangkok]
Bangkok
Bank Public Co.,
Ltd.
[Head Office :
333 Silom Rd.,
Silom, Bangrak, Bangkok]
EMPLOYMENT
The
subject employs 590
office staff and
factory workers.
LOCATION
DETAILS
The
premise is rented
for operating an office
at the heading
address in commercial/ residential area.
Factory and
warehouse are located
on 800,000 square
meters of land,
at 351 Moo 6,
Hemaraj Chonburi Industrial
Estate, Bowin, Sriracha,
Chonburi 20230.
Tel : [66]
38 345-355-9, Fax : [66] 38
345-350
COMMENT
The
company is a subsidiary
of Tata Steel (Thailand) Public
Co., Ltd. who
is the biggest
steel maker in
Thailand at Bo Win, Chonburi province. The
principle activity is the
manufacturing and distributing
of round and deformed bars
and wire rod
for use in
steel, reinforced concrete
for construction industry.
The company
projects a return to
profitability for the fiscal year
ending next March 31 after three years
of losses if an
anti-dumping duty imposed. The
temporary duty has
succeeded in curbing
imports, but the
measure ends in
December. The company is sticking with its sales growth
projection of 10%
for the fiscal year from expansion in the
construction industry.
The company
still maintains the
leadership position in
product segments like
deform bars and wire rods.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 10 million,
divided into 100,000
shares of Bht. 100
each.
The
capital was increased
later as followings:
Bht. 1,000
million on April
23, 1990
Bht. 1,850
million on February
20, 1992
Bht. 2,115
million on October
9 , 1992
Bht. 3,000
million in October,
1993
The
latest registered capital
is at Bht. 4,627,965,356.40 divided
into 3,856,637,797 shares
of Bht. 1.20 each
with fully paid.
MAIN
SHAREHOLDERS : [as
at July 26,
2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Tata Steel [Thailand]
Public Co., Ltd. Nationality: Foreign Address : 555 Rasa
Tower 2, Phaholyothin Rd.,
Jatujak,
Bangkok |
3,059,164,289 |
79.32 |
|
Mr. Sawas Horrungruang Nationality: Thai Address : 9
Ramkhamhaeng Rd., Suanluang,
Bangkok |
1,667,000 |
0.04 |
|
Ms. Siriporn Horrungruang Nationality: Thai Address : 351/1
Silom Rd., Silom, Bangrak, Bangkok |
1,000,000 |
0.03 |
|
Ms. Orn-anong Suriyapanumas Nationality: Thai Address : 37/4
Arun Amarin Rd.,
Bangkoknoi, Bangkok |
1,000,000 |
0.03 |
|
Mr. Sunthorn Chaylaemlak Nationality: Thai Address : 245/66
Klongbangkokyai Rd., Pasicharoen, Bangkok |
1,000,000 |
0.03 |
|
Mr. Sawai Horrungruang Nationality: Thai Address : 114/3
Moo 1, Laemfapha,
Muang,
Samutprakarn |
1,000,000 |
0.03 |
|
Kiatnakin Bank Public
Company Limited Nationality: Thai Address : 500
Ploenchit Road, Lumpini,
Pathumwan, Bangkok |
919,800 |
0.02 |
|
Others |
790,886,708 |
20.50 |
Total shareholders :
837
Share Structure [as
at July 26,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
803 |
8,888,108 |
0.23 |
|
Foreign |
34 |
3,847,749,689 |
99.77 |
|
Total |
837 |
3,856,637,797 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Thanawan Anuratbodee No.
3440
BALANCE SHEET [BAHT]
The
latest financial figures
published for March
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
84,719,092 |
90,254,213 |
103,728,974 |
|
Trade Account &
Other Receivable - Related
company |
212,889,602 |
183,050,260 |
261,514,595 |
|
- Other
company |
795,063,546 |
750,390,679 |
1,027,886,958 |
|
Other Receivable - Related
Company |
7,105,661 |
6,140,461 |
17,643,481 |
|
- Other
company |
5,738,251 |
10,073,751 |
- |
|
Short-term Lending to
Parent Company |
948,573,847 |
- |
- |
|
Inventories |
2,540,533,611 |
3,330,509,055 |
4,152,504,831 |
|
Deferred Value Added Tax |
31,844,589 |
36,131,739 |
36,269,329 |
|
Other Current Assets
|
12,022,932 |
18,572,885 |
37,409,784 |
|
|
41,836,389 |
|
|
|
Total Current Assets
|
4,638,491,131 |
4,425,123,043 |
5,636,957,952 |
|
Investment available for
Sale |
1,300,000 |
1,600,000 |
- |
|
Fixed Assets |
4,960,360,701 |
8,422,362,978 |
9,042,289,834 |
|
Computer Programme |
275,058 |
340,935 |
- |
|
Deferred Income Tax |
206,152,737 |
492,396,281 |
701,766,377 |
|
Other Non-current Assets |
23,895,838 |
41,836,389 |
50,373,338 |
|
Total Assets |
9,830,475,465 |
13,383,659,626 |
15,431,387,501 |
LIABILITIES & SHAREHOLDERS' EQUITY
[BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan
from Financial Institution |
1,763,161,959 |
830,667,166 |
- |
|
Trade Account Payable - Related
company |
1,265,408,780 |
1,409,332,464 |
2,708,804,454 |
|
- Other company |
457,251,508 |
437,071,321 |
318,438,177 |
|
Other Payable - Related
Company |
15,902,323 |
12,398,998 |
16,031,242 |
|
Advance Income from
Customers |
30,281,496 |
74,915,788 |
- |
|
Accrued Expenses |
237,739,334 |
117,222,550 |
- |
|
Current Portion of Long-term
Liabilities Trade Accounts
Payable from Debt
Restructuring |
57,712,398 |
186,903,192 |
- |
|
Long-term Loan from Parent
Company |
1,650,000,000 |
780,000,000 |
780,000,000 |
|
Short-term Loan from Parent
Company |
- |
3,301,939,657 |
3,343,957,371 |
|
Other Current Liabilities |
5,243,570 |
129,681,380 |
505,551,888 |
|
|
|
|
|
|
Total Current Liabilities |
5,482,701,368 |
7,280,132,516 |
7,672,783,132 |
|
Long-term Loan from Parent
Company |
2,675,000,000 |
5,620,000,000 |
5,620,000,000 |
|
Trade Account Payable
from Debt Restructuring |
- |
- |
186,903,192 |
|
Estimation Liabilities for Benefit Employees |
37,139,737 |
32,085,974 |
38,306,794 |
|
Total Liabilities |
8,194,841,105 |
12,932,218,490 |
13,517,993,118 |
|
|
2013 |
2012 |
2011 |
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1.20
par value Authorized & issued share
capital 3,856,675,720 shares |
4,628,010,864 |
4,628,010,864 |
4,628,010,864 |
|
|
|
|
|
|
Capital Paid |
4,627,965,356 |
3,253,398,864 |
3,253,398,864 |
|
Surplus on Share
Capital Ordinary Shares |
3,773,395,295 |
- |
- |
|
Expired Warrant |
1,896 |
- |
- |
|
Provision for Change
in Fair Value
of Investment |
- |
- |
2,500,000 |
|
Warrant |
- |
57,275,500 |
57,275,500 |
|
Retained Earnings Appropriated for Statutory Reserve |
42,699,155 |
42,699,155 |
42,699,155 |
|
Unappropriated |
[6,809,727,342] |
[2,903,532,383] |
[1,442,479,136] |
|
|
|
|
|
|
Total Shareholders' Equity |
1,634,334,360 |
449,841,136 |
1,913,394,383 |
|
Unrealized Profit from
Measurement in Value of
Investment Available for Sale |
1,300,000 |
1,600,000 |
- |
|
Total Liabilities & Shareholders'
Equity |
9,830,475,465 |
13,383,659,626 |
15,431,387,501 |
PROFIT &
LOsS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
32,068,126,073 |
30,135,629,099 |
27,502,658,213 |
|
Gain on Exchange Rate |
22,938,714 |
29,453,305 |
- |
|
Gain on Debt
Restructuring |
65,785,886 |
- |
- |
|
Other Income |
33,654,871 |
60,870,534 |
22,037,183 |
|
Total Revenues |
32,190,505,544 |
30,225,952,938 |
27,524,695,396 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
32,204,918,064 |
30,752,544,302 |
28,329,657,646 |
|
Selling Expenses |
192,179,452 |
192,956,885 |
202,231,127 |
|
Administrative Expenses |
126,769,201 |
136,689,485 |
102,875,571 |
|
Loss on Exchange
Rate |
- |
- |
35,924,232 |
|
Loss on Diminution
of Building &
Equipment |
2,897,702,428 |
- |
- |
|
Total Expenses |
35,421,569,145 |
31,082,190,672 |
28,670,688,576 |
|
|
|
|
|
|
Loss before Financial Cost &
Income Tax |
[3,231,063,601] |
[856,237,734] |
[1,145,993,180] |
|
Financial Cost |
[388,887,814] |
[395,445,416] |
[310,253,729] |
|
|
|
|
|
|
Loss before Income Tax |
[3,619,951,415] |
[1,251,683,150] |
[1,456,246,909] |
|
Income Tax [benefit] |
[286,243,544] |
[209,370,097] |
222,804,297 |
|
|
|
|
|
|
Net Profit [Loss]
for the Year |
[3,906,194,959] |
[1,461,053,247] |
[1,233,442,612] |
|
Other Miscellaneous Loss Unrealized Loss
from Measurement of Investment Available
for Sale |
[300,000] |
[900,000] |
- |
|
Net Profit / [Loss] |
[3,906,494,959] |
[1,461,953,247] |
[1,233,442,612] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.85 |
0.61 |
0.73 |
|
QUICK RATIO |
TIMES |
0.37 |
0.14 |
0.18 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.08 |
3.58 |
3.04 |
|
TOTAL ASSETS TURNOVER |
TIMES |
3.26 |
2.25 |
1.78 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
28.79 |
39.53 |
53.50 |
|
INVENTORY TURNOVER |
TIMES |
12.68 |
9.23 |
6.82 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
9.05 |
9.09 |
13.64 |
|
RECEIVABLES TURNOVER |
TIMES |
40.33 |
40.16 |
26.76 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
5.18 |
5.19 |
4.10 |
|
CASH CONVERSION CYCLE |
DAYS |
32.66 |
43.43 |
63.04 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
100.43 |
102.05 |
103.01 |
|
SELLING & ADMINISTRATION |
% |
0.99 |
1.09 |
1.11 |
|
INTEREST |
% |
1.21 |
1.31 |
1.13 |
|
GROSS PROFIT MARGIN |
% |
(0.04) |
(1.75) |
(2.93) |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(10.08) |
(2.84) |
(4.17) |
|
NET PROFIT MARGIN |
% |
(12.18) |
(4.85) |
(4.48) |
|
RETURN ON EQUITY |
% |
(239.03) |
(324.99) |
(64.46) |
|
RETURN ON ASSET |
% |
(39.74) |
(10.92) |
(7.99) |
|
EARNING PER SHARE |
BAHT |
(1.01) |
(0.54) |
(0.45) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.83 |
0.97 |
0.88 |
|
DEBT TO EQUITY RATIO |
TIMES |
5.01 |
28.75 |
7.06 |
|
TIME INTEREST EARNED |
TIMES |
(8.31) |
(2.17) |
(3.69) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
6.41 |
9.57 |
|
|
OPERATING PROFIT |
% |
277.36 |
(25.28) |
|
|
NET PROFIT |
% |
(167.21) |
(18.53) |
|
|
FIXED ASSETS |
% |
(6.70) |
(6.86) |
|
|
TOTAL ASSETS |
% |
(26.55) |
(13.27) |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is 6.41%. Turnover has increased from THB
30,135,629,099.00 in 2012 to THB 32,068,126,073.00 in 2013. While net profit
has decreased from THB -1,461,953,247.00 in 2012 to THB -3,906,494,959.00 in
2013. And total assets has decreased from THB 13,383,659,626.00 in 2012 to THB
9,830,475,465.00 in 2013.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
(0.04) |
Deteriorated |
Industrial
Average |
7.52 |
|
Net Profit Margin |
(12.18) |
Deteriorated |
Industrial
Average |
1.82 |
|
Return on Assets |
(39.74) |
Deteriorated |
Industrial
Average |
2.41 |
|
Return on Equity |
(239.03) |
Deteriorated |
Industrial
Average |
6.37 |
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 -0.04%. When compared with
the industry average, the ratio of the company was lower. This indicated that
company may have problems 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 -12.18%.
When compared with the industry average, the ratio of the company was lower.
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. When compared with the
industry average, it was lower, the company's figure is -39.74%.
Return on Equity indicates how profitable a company is by comparing its
net income to its average shareholders' equity, ROE measures how much the
shareholders earned for their investment in the company. When compared with the
industry average, it was lower, the company's figure is -239.03%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.85 |
Risky |
Industrial
Average |
1.22 |
|
Quick Ratio |
0.37 |
|
|
|
|
Cash Conversion Cycle |
32.66 |
|
|
|
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 0.85 times in 2013, increased from 0.61 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 0.37 times in 2013,
increased from 0.14 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 33 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.83 |
Acceptable |
Industrial
Average |
0.52 |
|
Debt to Equity Ratio |
5.01 |
Risky |
Industrial
Average |
1.02 |
|
Times Interest Earned |
(8.31) |
Risky |
Industrial
Average |
(0.23) |
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 -8.31 lower than 1, so the company is not generating
enough cash from EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.83 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 Downtrend
Times Interest Earned Downtrend
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.08 |
Impressive |
Industrial
Average |
(1.25) |
|
Total Assets Turnover |
3.26 |
Impressive |
Industrial
Average |
1.89 |
|
Inventory Conversion Period |
28.79 |
|
|
|
|
Inventory Turnover |
12.68 |
Impressive |
Industrial
Average |
4.36 |
|
Receivables Conversion Period |
9.05 |
|
|
|
|
Receivables Turnover |
40.33 |
Impressive |
Industrial
Average |
1.83 |
|
Payables Conversion Period |
5.18 |
|
|
|
The company's Account Receivable Ratio is calculated as 40.33 and 40.16 in
2013 and 2012 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate revenue. A lower ratio may indicate
over extension and collection problems. Conversely, a higher ratio may indicate
an overtly stringent policy. In this case, the company's A/R ratio in 2013
increased from 2012. This would suggest the company had good performance in the
management of its debt collections.
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 40 days at the
end of 2012 to 29 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 9.23 times in year 2012 to 12.68
times in year 2013.
The company's Total Asset Turnover is calculated as 3.26 times and 2.25
times in 2013 and 2012 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.24 |
|
UK Pound |
1 |
Rs.101.81 |
|
Euro |
1 |
Rs.84.88 |
INFORMATION DETAILS
|
Report
Prepared by : |
MNL |
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.