MIRA
INFORM REPORT
|
Report Date : |
25.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
SAHAVIRIYA PLATE MILL PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
4th
Floor, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
13.06.1989 |
|
|
|
|
Com. Reg. No.: |
0107551000258 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor and Exporter of Hot Rolled Steel Plate |
|
|
|
|
No. of Employees : |
280 |
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 : |
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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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
SAHAVIRIYA
PLATE MILL PUBLIC
COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 4th FLOOR,
PRAPAWIT BUILDING,
28/1 SURASAK
ROAD, SILOM,
BANGRAK, BANGKOK
10500
TELEPHONE : [66] 2630-0257-62
FAX :
[66] 2630-0263,
2630-0267
E-MAIL
ADDRESS : info@spm-plate.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1989
REGISTRATION
NO. : 0107551000258 [Former
: 0105532053625]
TAX
ID NO. : 3101720105
CAPITAL REGISTERED : BHT.
2,700,000,000
CAPITAL PAID-UP : BHT.
2,200,000,000
SHAREHOLDER’S PROPORTION : THAI :
95.45%
CHINESE :
4.55%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. TAWEEDEJ PITICHAICHAN,
THAI
PRESIDENT
& ACTING FACTORY MANAGER
NO.
OF STAFF : 280
LINES
OF BUSINESS : HOT
ROLLED STEEL PLATE
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
LOW PERFORMANCE
HISTORY
The
subject was established
on June 13,
1989 as a private limited
company under the
registered name style “Sahaviriya Plate
Mill Company Limited”
by Thai and
Chinese groups, with
the business objective
to manufacture and market
steel plate and
hot rolled coils for industrial uses both domestic and oversea markets. It currently employs approximately
280 staff.
Subject
has been granted an
investment privilege promotional
by Board of Investment [BOI], with the
promotion certificate No.
1076/2534 and 1089/2541
on April 16,
1991 and February
27, 1998, respectively.
On
September 9, 2008, the subject’s
status was converted
to a public
limited company under
the name SAHAVIRIYA
PLATE MILL PUBLIC
COMPANY LIMITED.
The
subject has achieved
many quality standards
such as TIS,
JIS, ASTM, API,
DIN, BS and
Lloy’d ship plates.
Subject
is a member
of Sahaviriya group
of companies, the
leading wide range
of steel traders
and manufacturers in
Thailand.
The subject’s
registered address is 4th
Flr., Prapawit Bldg.,
28/1 Surasak Rd.,
Silom, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Visit Noiphan |
|
Thai |
80 |
|
Mr. Wit Viriyaprapaikit |
[x] |
Thai |
79 |
|
Mr. Taweesak Senanarong |
|
Thai |
78 |
|
Mr. Somchai Pipitvijitkorn |
[x] |
Thai |
74 |
|
Mr. Piya Viriyaprapaikit |
[x] |
Thai |
64 |
|
Mrs. Kulvadee Tangkaravakoon |
[-] |
Thai |
53 |
|
Mr. Charin Hansuebsai |
|
Thai |
69 |
|
Mr. Yanyong Phuangrach |
|
Thai |
61 |
|
Mr. Taweedej Pitichaichan |
[-] |
Thai |
55 |
|
Mr. Chen Ming
Chuan |
|
Taiwanese |
56 |
|
Mr. Komkrit Prachakrit |
|
Thai |
49 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can jointly sign
with one of
the directors [-]
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Taweedej Pitichaichan is
the President and
acting Factory Manager.
He is Thai
nationality with the
age of 55
years old.
Mr. Chen Ming Chuan
is the Vice
President.
He is Taiwanese
nationality with the
age of 56
years old.
Ms. Orakarn Rijiravarith is
the Assistant VP [Finance].
She is Thai
nationality.
Mrs. Areephan Limsuksrikul is
the Assistant VP [Local
Sales].
She is Thai
nationality.
Mrs. Wannaree Feungfoo is
the Assistant VP [Oversea
Sales].
She is Thai
nationality.
BUSINESS OPERATIONS
The
subject is engaged
in manufacturing and
marketing of hot
rolled steel plate,
with the dimension
of 6 mm.-100 mm. in
thickness, 914 mm.-2,134
mm. in width and
2,438-18,288 mm. in length
to serve different
industries such as
construction, ship building,
machinery making, steel
pipe and pipe
industry, under the
brand name “SPM”.
Its
products are used
in the production
of various industries
such as:
·
Steel
tank making industry
·
Ship
building industry
·
Construction
industry
·
Steel
pipe industry
·
Machinery
making-machine industry
·
Boiler
making-steam boiler for
industrial used
·
etc.
PRODUCTION
652,000
tons per annum
PURCHASE
Most of raw materials,
mainly steel slab are purchased
from local suppliers,
the remaining including machinery are
imported from Japan,
Taiwan, Singapore, Australia
and Republic of China.
SALES
80% of the
products is sold
locally by wholesale
to traders, manufacturers, and
end-users, the remaining 20%
is exported to
Singapore, Republic of China,
Myanmar, Laos, Vietnam,
Taiwan, Malaysia, India,
Indonesia and European
countries.
RELATED AND
AFFILIATED COMPANIES
The subject is
a member of
Sahaviriya group of
companies, consist of:
Sahaviriya Steel Industries
Public Company Limited
Business Type :
Manufacturing and
distributing of steel
products
Sahaviriya Inter Steel
Holdings Co., Ltd.
Business Type :
Holding company and distributing of
construction material products
Sahaviriya Group Co.,
Ltd.
Business Type :
Holding company
Sahaviriya Steel Group
Co., Ltd.
Business Type :
Manufacturing and distributing
of steel products
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
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
or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
The Siam Commercial
Bank Public Co.,
Ltd.
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
280 staff, comprising
180 permanent staff
and workers and
100 sub-contract staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Factory
and warehouse are
located 160 Moo
14, Sukhumvit Rd., Bangpakong, Chachoengsao
24130. Tel. : [66] 38
832-056-60 Fax. : [66] 38
531-635.
COMMENT
The company has been focusing on the continuous development to ensure that it continues to earn the trust placed by its
customers. This can be seen
from the variety of products and services
provided to the
industries. The products
have received positive responses by both local
and foreign customers.
In 2013 the company
is still focusing on
the expansion of
its pre-finishing facilities
to fulfill the extensive
demand of the
customers, as well as looking
for new business opportunities that
will support its
steady growth.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 125,000,000 divided into 12,500,000 shares
of Bht. 10 each.
The
capital was increased
later as following:
Bht. 500,000,000 on
October 2, 1997
Bht. 800,000,000 on
March 16, 2004
Bht. 850,000,000 on
July 29, 2005
Bht. 1,000,000,000
on December 25,
2007
The
latest registered capital
was increased to Bht. 2,700,000,000 divided into 2,700,000,000 shares
of Bht. 1
each.
MAIN
SHAREHOLDERS : [as
at April 30,
2013] at Bht.
2,200 million of
capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Saha Long Steel
Holdings Co., Ltd. Nationality: Thai Address : 28/1
Surasak Rd., Silom,
Bangrak, Bangkok |
738,976,710 |
33.59 |
|
Sahaviriya Group Co.,
Ltd. Nationality: Thai Address : 28/1
Surasak Rd., Silom,
Bangrak, Bangkok |
675,000,000 |
30.68 |
|
Ms. Sumarn Limpiyachart Nationality: Thai Address : 179/17
Nonsee Rd., Chongnonsi,
Yannawa, Bangkok |
105,341,170 |
4.79 |
|
Mrs. Teerarat Kunatthanon Nationality: Thai Address : 33/1
Rama 3 Rd.,
Chongnonsi, Yannawa, Bangkok |
104,733,330 |
4.76 |
|
Mrs. Kanokvipa Viriyaprapaikit Nationality: Thai Address : 84 Chuaploeng Rd.,
Thungmahamek,
Sathorn, Bangkok |
104,733,330 |
4.76 |
|
Infinity Development Co.,
Ltd. Nationality: Chinese Address : Room
2106 Jardine House
Connox Place,
Central, Hong Kong |
100,000,000 |
4.54 |
|
Mr. Piya Viriyaprapaikit Nationality: Thai Address : 33/1
Rama 3 Rd.,
Chongnonsi, Yannawa, Bangkok |
33,400,000 |
1.52 |
|
Mr. Win Viriyaprapaikit Nationality: Thai Address : 84
Chuaploeng Rd., Thungmahamek,
Sathorn, Bangkok |
33,400,000 |
1.52 |
|
Mrs. Areephan Limsuksrikul Nationality: Thai Address : 573/28
Soi Prachasanti, Huaykwang,
Huaykwang, Bangkok |
23,806,860 |
1.08 |
|
Mr. Taweedej Pitichaichan Nationality: Thai Address : 29/30
Soi Prachachuen-Nonthaburi 8,
Bangkhen, Muang, Nonthaburi |
23,529,410 |
1.07 |
|
Others |
257,079,190 |
11.69 |
Total Shareholders : 34
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
33 |
2,100,000,000 |
95.45 |
|
Foreign - Chinese |
1 |
100,000,000 |
4.55 |
|
Total |
34 |
2,200,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Kamolthip
Lertwitvorathep No. 4377
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011 &
2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalent |
1,718,157 |
927,290 |
3,503,027 |
|
Trade Account Receivable & Other Receivable |
2,135,989,134 |
2,235,380,334 |
2,005,133,789 |
|
Short-term Lending to
Directors |
26,664,187 |
26,210,000 |
- |
|
Forward Contract Receivable |
- |
57,652,138 |
- |
|
Inventories |
1,355,676,801 |
2,560,412,235 |
3,056,664,483 |
|
Advance Payment for
Purchase of Raw Materials |
28,037,383 |
- |
- |
|
Refundable Value Added
Tax |
769,857,321 |
761,183,357 |
835,102,634 |
|
Other Current Assets
|
4,586,426 |
2,811,286 |
3,719,126 |
|
|
|
|
|
|
Total Current Assets
|
4,322,529,409 |
5,644,576,640 |
5,904,123,059 |
|
Fixed Assets |
3,077,004,115 |
2,953,770,341 |
2,904,503,315 |
|
Advance Payment for Acquisition of Assets |
524,693,209 |
351,882,295 |
267,075,626 |
|
Other Non-current Assets
|
1,646,276 |
1,555,076 |
1,554,076 |
|
Total Assets |
7,925,873,009 |
8,951,784,352 |
9,077,256,076 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
3,607,672,167 |
3,746,168,495 |
6,205,108,547 |
|
Trade Account Payable & Other Payable |
2,113,391,311 |
2,195,965,871 |
1,793,304,864 |
|
Short-term Loan from Related Company |
31,000,000 |
- |
- |
|
Contracts Payable in
Foreign Currency |
83,807,927 |
- |
1,114,068 |
|
Current Portion of Long-term
Loan |
600,000,000 |
750,000,000 |
300,000,000 |
|
Current Portion of Hire-purchase Contract Liabilities |
- |
231,217 |
478,699 |
|
Advance Income from Customer |
185,672,462 |
164,040,574 |
133,808,897 |
|
Other Current Liabilities |
496,420 |
2,137,983 |
2,413,035 |
|
|
|
|
|
|
Total Current Liabilities |
6,622,040,287 |
6,858,544,140 |
8,436,228,110 |
|
Long-term Loan -
Net of Current Portion |
1,200,000,000 |
1,800,000,000 |
350,000,000 |
|
Hire-purchase Contract Liabilities
- Net of
Current Portion |
- |
- |
226,645 |
|
Reserve for Long-term
Employee Benefits |
16,700,680 |
14,612,824 |
- |
|
Total Liabilities |
7,838,740,967 |
8,673,156,964 |
8,786,454,755 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1
par value Authorized &
issued share capital 2,700,000,000 shares
|
2,700,000,000 |
2,700,000,000 |
2,700,000,000 |
|
|
|
|
|
|
Capital Paid |
2,200,000,000 |
2,200,000,000 |
2,200,000,000 |
|
Retained Earning Appropriated for
Statutory Reserve
|
150,000,000 |
150,000,000 |
150,000,000 |
|
Unappropriated |
[2,451,653,774] |
[2,260,158,428] |
[2,247,984,495] |
|
Other Components of Shareholders’ Portion |
188,785,816 |
188,785,816 |
188,785,816 |
|
Total Shareholders' Equity |
87,132,042 |
278,627,388 |
290,801,321 |
|
Total Liabilities &
Shareholders' Equity |
7,925,873,009 |
8,951,784,352 |
9,077,256,076 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
8,351,035,825 |
8,594,320,507 |
7,494,999,568 |
|
Gain on Exchange
Rate |
- |
- |
149,710,993 |
|
Compensation from Cancellation of Customer Orders |
- |
- |
120,851,981 |
|
Other Income |
7,522,427 |
28,326,463 |
14,686,807 |
|
Total Revenues |
8,358,558,252 |
8,622,646,970 |
7,780,249,349 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
7,998,444,192 |
7,953,368,991 |
6,884,576,046 |
|
Selling Expenses |
109,550,068 |
114,719,879 |
112,169,535 |
|
Administrative Expenses |
79,435,774 |
82,789,303 |
110,101,499 |
|
Loss on Exchange
Rate |
25,984,028 |
121,483,148 |
- |
|
Total Expenses |
8,213,414,062 |
8,272,361,321 |
7,106,847,080 |
|
|
|
|
|
|
Profit before Financial Expenses &
Income Tax |
145,144,190 |
350,285,649 |
673,402,269 |
|
Financial Expenses |
[336,639,536] |
[349,794,729] |
[366,432,874] |
|
Profit before Income Tax |
[191,495,346] |
490,920 |
306,969,395 |
|
Income Tax |
- |
- |
[355,848] |
|
|
|
|
|
|
Net Profit / [Loss] |
[191,495,346] |
490,920 |
306,613,547 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.65 |
0.82 |
0.70 |
|
QUICK RATIO |
TIMES |
0.33 |
0.34 |
0.24 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.71 |
2.91 |
2.58 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.05 |
0.96 |
0.83 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
61.86 |
117.50 |
162.06 |
|
INVENTORY TURNOVER |
TIMES |
5.90 |
3.11 |
2.25 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
93.36 |
94.94 |
97.65 |
|
RECEIVABLES TURNOVER |
TIMES |
3.91 |
3.84 |
3.74 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
96.44 |
100.78 |
95.08 |
|
CASH CONVERSION CYCLE |
DAYS |
58.78 |
111.66 |
164.63 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
95.78 |
92.54 |
91.86 |
|
SELLING & ADMINISTRATION |
% |
2.26 |
2.30 |
2.97 |
|
INTEREST |
% |
4.03 |
4.07 |
4.89 |
|
GROSS PROFIT MARGIN |
% |
4.31 |
7.79 |
11.95 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.74 |
4.08 |
8.98 |
|
NET PROFIT MARGIN |
% |
(2.29) |
0.01 |
4.09 |
|
RETURN ON EQUITY |
% |
(219.78) |
0.18 |
105.44 |
|
RETURN ON ASSET |
% |
(2.42) |
0.01 |
3.38 |
|
EARNING PER SHARE |
BAHT |
(0.09) |
0.00 |
0.14 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.99 |
0.97 |
0.97 |
|
DEBT TO EQUITY RATIO |
TIMES |
89.96 |
31.13 |
30.21 |
|
TIME INTEREST EARNED |
TIMES |
0.43 |
1.00 |
1.84 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(2.83) |
14.67 |
|
|
OPERATING PROFIT |
% |
(58.56) |
(47.98) |
|
|
NET PROFIT |
% |
(39,107.44) |
(99.84) |
|
|
FIXED ASSETS |
% |
4.17 |
1.70 |
|
|
TOTAL ASSETS |
% |
(11.46) |
(1.38) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -2.83%. Turnover has decreased from THB
8,594,320,507.00 in 2011 to THB 8,351,035,825.00 in 2012. While net profit has
decreased from THB 490,920.00 in 2011 to THB -191,495,346.00 in 2012. And total
assets has decreased from THB 8,951,784,352.00 in 2011 to THB 7,925,873,009.00
in 2012.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
4.31 |
Impressive |
Industrial
Average |
1.58 |
|
Net Profit Margin |
(2.29) |
Deteriorated |
Industrial
Average |
0.36 |
|
Return on Assets |
(2.42) |
Deteriorated |
Industrial
Average |
0.83 |
|
Return on Equity |
(219.78) |
Deteriorated |
Industrial
Average |
2.03 |
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 4.31%. When compared with the industry
average, the ratio of the company was higher, indicated that company was more
profitable than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company's figure is -2.29%.
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 -2.42%.
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 -219.78%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.65 |
Risky |
Industrial
Average |
1.31 |
|
Quick Ratio |
0.33 |
|
|
|
|
Cash Conversion Cycle |
58.78 |
|
|
|
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 0.65 times in 2012, decreased from 0.82 times, then the company may
not be efficiently using its current assets. 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 0.33 times in 2012,
decreased from 0.34 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 59 days.
Trend of the average
competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.99 |
Acceptable |
Industrial
Average |
0.59 |
|
Debt to Equity Ratio |
89.96 |
Risky |
Industrial
Average |
1.42 |
|
Times Interest Earned |
0.43 |
Risky |
Industrial
Average |
- |
Debt to Equity Ratio a measurement of how much suppliers, lenders,
creditors and obligors have committed to the company versus what the shareholders
have committed. A lower the percentage means that the company is using less
leverage and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 0.44 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 0.99 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.71 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.05 |
Deteriorated |
Industrial
Average |
2.26 |
|
Inventory Conversion Period |
61.86 |
|
|
|
|
Inventory Turnover |
5.90 |
Impressive |
Industrial
Average |
5.11 |
|
Receivables Conversion Period |
93.36 |
|
|
|
|
Receivables Turnover |
3.91 |
Impressive |
Industrial
Average |
3.82 |
|
Payables Conversion Period |
96.44 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.91 and 3.84 in
2012 and 2011 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 2012
increased from 2011. 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 118 days at the
end of 2011 to 62 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 3.11 times in year 2011 to 5.9 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.05 times and 0.96
times in 2012 and 2011 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.59.73 |
|
|
1 |
Rs.91.82 |
|
Euro |
1 |
Rs.78.23 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.