MIRA INFORM REPORT
|
Report Date : |
21.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
SIAM
YAMATO STEEL CO.,
LTD. |
|
|
|
|
Registered Office : |
12th Floor, Siam Cement Building Ii,1 Siam Cement Road, Bangsue, Bangkok 10800 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
07.04.1992 |
|
|
|
|
Com. Reg. No.: |
0105535060339 [Former: 6032/2535] |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, distributor
and exporter of steel
products |
|
|
|
|
No. of Employees : |
750 |
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 : |
Regular |
|
|
|
|
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) |
|
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
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
SIAM YAMATO STEEL CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 12th FLOOR,
SIAM CEMENT BUILDING
II,
1 SIAM
CEMENT ROAD, BANGSUE,
BANGKOK 10800,
THAILAND
TELEPHONE :
[66] 2586-2783-5,
2586-2371-2, 2586-7777
FAX :
[66] 2586-2687,
2910-3123
E-MAIL
ADDRESS : sys@syssteel.com
yamato@syssteel.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1992
REGISTRATION
NO. : 0105535060339 [Former: 6032/2535]
TAX
ID NO. : 3011123294
CAPITAL REGISTERED : BHT. 3,000,000,000
CAPITAL PAID-UP : BHT.
3,000,000,000
SHAREHOLDER’S PROPORTION : THAI :
10%
JAPANESE :
90%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PAITHOON JIRANANTARAT, THAI
MANAGING DIRECTOR
& MARKETING MANAGER
NO. OF STAFF : 750
LINES
OF BUSINESS : STEEL
PRODUCTS
MANUFACTURER, DISTRIBUTOR
AND 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 April
7, 1992 as
a private limited
company under the
name style “SIAM
YAMATO STEEL CO., LTD.”
by a joint
venture among Yamato Kogyo
Co., Ltd. [64.18%], Mitsui & Co., Ltd. [18%], Siam
Cement Public Co., Ltd. [10%],
Sumitomo Corporation [5.82%]
and Mitsui & Co.
[Thailand] Ltd. [2%] to produce
hot rolled structural
steel and sheet
piles in Thailand.
The products are certified for
international standard by TIS,
JIS BS, ASTM,
EURONORM and AS in order
to serve diverse
requirements of both domestic
and international. It currently
employs approximate 750 staff.
The subject received
the promotion privilege
from the Board
of Investment.
Subject is also
a member of
the Siam Cement
Group.
The subject’s registered
address is 12th Floor,
Siam Cement Building
II, 1 Siam Cement
Rd., Bangsue, Bangkok 10800,
and this is
the subject’s current
operation address.
Certification/Award:
-
ISO 9002
-
ISO/IEC
Guide 25
-
TIS 1227-1996
-
JIS G 3101,
G 3106, G 3136
-
TIS 1390-1996
-
TUV
Certificate
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Tomoyuki Mochizuki |
|
Japanese |
49 |
|
Mr. Chaovalit Ekabutr |
|
Thai |
54 |
|
Mr. Damri Tanchevawong |
|
Thai |
60 |
|
Mr. Hiroyuki Inoue |
|
Japanese |
68 |
|
Mr. Shinichi Hori |
|
Japanese |
50 |
|
Mr. Paithoon Jiranantarat |
|
Thai |
50 |
|
Mr. Kazutaka Motobayashi |
|
Japanese |
58 |
|
Mr. Osamu Ishimura |
|
Japanese |
53 |
|
Mr. Aree Chavalitchewinkul |
|
Thai |
50 |
|
Mr. Takafumi Yoshida |
|
Japanese |
58 |
AUTHORIZED PERSON
Two of the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Paithoon Jiranantarat is
the Managing Director
& Marketing Manager.
He is Thai
nationality with the
age of 50
years old.
Mr. Jesada Plangmanee
is the Production
Manager.
He is Thai
nationality.
Mr. Chaiwat Lertamornvichaiyuth is
the Personnel Manager.
He is Thai
nationality.
Mr.
Chalermkiat Itsarangkoon Na
Ayudhya is the
Project Sales &
Technical Manager.
He is Thai
nationality.
Mr. Peerapat Saengsunee is
the Engineering Manager.
He is Thai
nationality.
Mr. Sukij Chanama is
the Procurement Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
of structure steel,
wide plant steel
& hot rolled
shape steel including
H-Beam, I-Beam, Channel, Angle,
Sheet Pile, cut-beam
and etc. Its
production has been
received manufacturing technology
from Yamato Kogyo Co.,
Ltd. in Japan.
The subject also
has a cut-to-length
service for lengths
other than the
standard 6 m. and
12 m.
PRODUCTION
700,000 tons/year
MAJOR BRAND
“SYS”
PURCHASE
Most of raw materials
are purchased from local suppliers,
the remaining including
scrap and iron
are imported from
Japan, Germany, Republic of
China, Taiwan, Malaysia, India, South Africa and
Korea.
MAJOR SUPPLIERS
Yamato Kogyo Ltd. : Japan
Mitsui & Co.,
Ltd. : Japan
Sumitomo Corporation
[Thailand] Ltd. : Thailand
SALES [LOCAL]
85% of its
products is sold
locally to Thai
Government, construction contractor,
wholesalers, retailers and
end-users.
EXPORT
15% of the
products is exported
to Laos, Indonesia,
Taiwan, Vietnam, Philippines,
Malaysia, Australia, Republic
of China, Hong
Kong, Korea and
India.
PARENT COMPANY
Yamato Kogyo Co., Ltd. : Japan
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.
SUBSIDIARY AND AFFILIATED
COMPANY
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
CREDIT
Sales are by
cash or on
the credits term
of 30-60-90 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.
[Head Office : 333
Silom Rd., Silom,
Bangrak, Bangkok 10500]
Kasikornbank Public Co., Ltd.
[Head Office : 1
Kasikorn Lane, Rajburana
Rd., Rajburana, Bangkok 10140]
Siam Commercial Bank
Public Co., Ltd.
[Bangsue Branch : Siam
Cement Rd., Bangsue, Bangkok
10800]
Sumitomo Mitsui Banking
Corporation
[Bangkok Office : 138
Silom Rd., Silom,
Bangrak, Bangkok 10500]
EMPLOYMENT
The subject employs
approximately 750 staff
[office staff and
factory workers].
LOCATION DETAILS
The premise is rented
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Factory: 9, I - 7
Mabtapud Industrial Estate,
A. Muang, Rayong
21150.
Tel: [66] 38
683-723, 38 683-732
Fax: [66] 38
683-200
Warehouse: 321/7 Moo 6,
Sriracha, Chonburi.
Tel. & Fax
: [66] 38
774-454-8
COMMENT
The
subject is the manufacturer of hot
rolled structural steel in
Thailand and also
the company within the Siam Cement Group. Its business
performance in 2011
had outstanding improved with
strong increase in sales compared to the previous
year. The construction
industry has been
expanding at a
remarkable rate during
this few years
due to economy improvement. Such
growth is followed
by an increase in
demand of construction
materials for both
public and private
projects.
FINANCIAL INFORMATION
The capital was
registered at Bht.
1 million, divided
into 10,000 shares
of Bht. 100
each.
The capital were
increased & decreased later
as followings:
Increased were: Bht.
1,200,000,000 on June
15, 1992
Bht. 3,000,000,000 on
November 4, 1993
Bht. 7,000,000,000 on
October 2, 1998
Bht. 7,800,000,000 on
December 21, 1999
Decreased were: Bht.
7,000,000,000 on December
2, 2002
Bht. 6,200,000,000 on
June 11, 2003
Bht. 3,000,000,000 on
December 18, 2003
The
latest registered capital
was decreased to Bht. 3,000,000,000
divided into 30,000,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE : [as at
April 20, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Yamato Kogyo Co., Ltd. Nationality: Japanese Address : 380 Kibi, Ohtsu-ku. Himeji-shi,
671-1192 Japan |
19,255,343 |
64.18 |
|
Mitsui & Co.,
Ltd. Nationality: Japanese Address : 2-1, Ohtemachi 1-chome,Chiyoda-ku, Tokyo, 100-0004,
Japan |
5,400,000 |
18.00 |
|
Siam Cement Public
Co., Ltd. Nationality: Thai Address : 1
Siam Cement Rd.,
Bangkok |
3,000,000 |
10.00 |
|
Sumitomo Corporation Nationality: Japanese Address : 1-8-11, Harumi, 1-chome, Chuo-ku, Tokyo,
104-8610, Japan |
1,744,657 |
5.82 |
|
Mitsui & Co.,
[Thailand] Ltd. Nationality: Japanese Address : 175
South Sathorn Rd.,
Thunmahamek,
Sathorn, Bangkok |
600,000 |
2.00 |
Total Shareholders : 5
Share Structure [as
at April 20,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
3,000,000 |
10.00 |
|
Foreign - Japanese |
4 |
27,000,000 |
90.00 |
|
Total |
5 |
30,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Vichien Kingmontree No.
3977
BALANCE SHEET [BAHT]
The
latest financial figures
published as at
December 31, 2011,
2010 & 2009
were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash and Cash Equivalents
|
235,945,590 |
740,579,081 |
1,409,643,462 |
|
Trade Accounts Receivable - Other Company |
1,430,790,954 |
735,389,296 |
946,324,531 |
|
- Related
Company |
135,769,894 |
101,691,268 |
36,059,888 |
|
Other Receivable |
17,794,550 |
19,173,758 |
- |
|
Inventories |
4,464,656,136 |
3,118,662,395 |
2,126,899,703 |
|
Deferred - Value Added
Tax |
106,554,124 |
62,206,499 |
158,975,159 |
|
Other Current Assets |
14,794,664 |
5,018,523 |
26,368,634 |
|
|
|
|
|
|
Total Current Assets |
6,406,305,912 |
4,782,720,820 |
4,704,271,377 |
|
Long-term Investment |
- |
15,534,000 |
25,000,000 |
|
Fixed Assets
|
10,842,411,311 |
11,329,049,678 |
12,026,493,580 |
|
Intangible Assets |
105,440,287 |
110,115,569 |
89,883,384 |
|
Deferred Expenses |
1,220,797,115 |
1,331,617,371 |
993,115,821 |
|
Other Non-current Assets |
3,166,414 |
3,193,744 |
3,189,369 |
|
Total Assets |
18,578,121,039 |
17,572,231,182 |
17,841,953,531 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current Liabilities |
2011 |
2010 [Adjusted] |
2009 |
|
|
|
|
|
|
Short-term Loan from Financial Institutions |
380,000,000 |
- |
- |
|
Trade Accounts Payable |
1,296,019,858 |
971,751,709 |
667,172,861 |
|
Other Payable |
498,106,914 |
451,318,456 |
- |
|
Payable from Related
Company |
- |
- |
61,322,614 |
|
Current Portion of
Long-term Loan from Financial
Institutions |
695,000,000 |
295,000,000 |
170,000,000 |
|
Current Portion of Long-term Loan from Related Company |
318,319,000 |
3,159,000,000 |
- |
|
Accrued Income Tax |
- |
- |
228,592,245 |
|
Accrued Expenses |
- |
- |
328,973,510 |
|
Work Guarantee |
- |
- |
578,183,136 |
|
Other Current Liabilities |
19,336,291 |
15,099,655 |
20,594,488 |
|
|
|
|
|
|
Total Current Liabilities |
3,206,782,063 |
4,892,169,820 |
2,054,838,854 |
|
|
|
|
|
|
Estimated Liabilities for Employee Benefits |
44,437,108 |
40,373,197 |
- |
|
Long-term Loan from Financial Institutions |
2,740,000,000 |
3,435,000,000 |
3,159,000,000 |
|
Long-term Loan from Related
Company |
2,450,569,000 |
- |
3,730,000,000 |
|
|
|
|
|
|
Total Liabilities |
8,441,788,171 |
8,367,543,017 |
8,943,838,854 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share Capital :
Baht. 100 par value
authorized issued
and fully paid share capital
30,000,000 shares |
3,000,000,000 |
3,000,000,000 |
3,000,000,000 |
|
|
|
|
|
|
Capital Paid |
3,000,000,000 |
3,000,000,000 |
3,000,000,000 |
|
Retained Earning Appropriated for
Statutory Reserve |
300,000,000 |
300,000,000 |
300,000,000 |
|
Unappropriated |
6,836,332,868 |
5,904,688,165 |
5,598,114,677 |
|
Total Shareholders' Equity |
10,136,332,868 |
9,204,688,165 |
8,898,114,677 |
|
|
|
|
|
|
Total Liabilities & Shareholders' Equity |
18,578,121,039 |
17,572,231,182 |
17,841,953,531 |
PROFIT & LOSS
ACCOUNT
|
Sale |
2011 |
2010 [Adjusted] |
2009 |
|
|
|
|
|
|
Sales |
22,747,454,969 |
16,383,566,238 |
12,320,678,020 |
|
Other Sales |
81,276,466 |
142,234,559 |
69,705,469 |
|
Total Sales |
22,828,731,435 |
16,525,800,797 |
12,390,383,489 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
20,184,108,778 |
14,717,558,539 |
9,415,369,663 |
|
Selling Expenses |
555,344,062 |
382,670,974 |
247,334,498 |
|
Administrative Expenses |
857,170,431 |
740,092,754 |
552,554,203 |
|
Other Expenses |
16,282,860 |
27,522,242 |
107,841,840 |
|
Total Expenses |
21,612,906,131 |
15,867,844,509 |
10,323,100,204 |
|
|
|
|
|
|
Profit before Financial
Cost & Income Tax |
1,215,825,304 |
657,956,288 |
2,067,283,285 |
|
Financial Cost |
[284,180,601] |
[316,207,886] |
[44,989,606] |
|
|
|
|
|
|
Profit before Income
Tax |
931,644,703 |
341,748,402 |
2,022,293,679 |
|
Income Tax |
- |
- |
[488,232,050] |
|
Net Profit / [Loss] |
931,644,703 |
341,748,402 |
1,534,061,629 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.00 |
0.98 |
2.29 |
|
QUICK RATIO |
TIMES |
0.60 |
0.34 |
1.24 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.10 |
1.45 |
1.02 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.22 |
0.93 |
0.69 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
80.74 |
77.34 |
82.45 |
|
INVENTORY TURNOVER |
TIMES |
4.52 |
4.72 |
4.43 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
22.96 |
16.38 |
28.03 |
|
RECEIVABLES TURNOVER |
TIMES |
15.90 |
22.28 |
13.02 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
23.44 |
24.10 |
25.86 |
|
CASH CONVERSION CYCLE |
DAYS |
80.26 |
69.63 |
84.62 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
88.73 |
89.83 |
76.42 |
|
SELLING & ADMINISTRATION |
% |
6.21 |
6.85 |
6.49 |
|
INTEREST |
% |
1.25 |
1.93 |
0.37 |
|
GROSS PROFIT MARGIN |
% |
11.63 |
11.04 |
24.15 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.34 |
4.02 |
16.78 |
|
NET PROFIT MARGIN |
% |
4.10 |
2.09 |
12.45 |
|
RETURN ON EQUITY |
% |
9.19 |
3.71 |
17.24 |
|
RETURN ON ASSET |
% |
5.01 |
1.94 |
8.60 |
|
EARNING PER SHARE |
BAHT |
31.05 |
11.39 |
51.14 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.45 |
0.48 |
0.50 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.83 |
0.91 |
1.01 |
|
TIME INTEREST EARNED |
TIMES |
4.28 |
2.08 |
45.95 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
38.84 |
32.98 |
|
|
OPERATING PROFIT |
% |
84.79 |
(68.17) |
|
|
NET PROFIT |
% |
172.61 |
(77.72) |
|
|
FIXED ASSETS |
% |
(4.30) |
(5.80) |
|
|
TOTAL ASSETS |
% |
5.72 |
(1.51) |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 38.84%. Turnover has increased from THB
16,383,566,238.00 in 2010 to THB 22,747,454,969.00 in 2011. While net profit
has increased from THB 341,748,402.00 in 2010 to THB 931,644,703.00 in 2011.
And total assets has increased from THB 17,572,231,182.00 in 2010 to THB
18,578,121,039.00 in 2011.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.63 |
Impressive |
Industrial Average |
6.34 |
|
Net Profit Margin |
4.10 |
Impressive |
Industrial Average |
1.14 |
|
Return on Assets |
5.01 |
Impressive |
Industrial Average |
1.22 |
|
Return on Equity |
9.19 |
Impressive |
Industrial Average |
2.51 |
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 11.63%. 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 4.1%, 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
5.01%, 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 9.19%, 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 :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
2.00 |
Impressive |
Industrial Average |
1.03 |
|
Quick Ratio |
0.60 |
|
|
|
|
Cash Conversion Cycle |
80.26 |
|
|
|
The Current Ratio is to ascertain whether a company's short-term assets
are readily available to pay off its short-term liabilities. The company's
figure is 2 times in 2011, increased from 0.98 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 0.6 times in 2011,
increased 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 81 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.45 |
Impressive |
Industrial Average |
0.65 |
|
Debt to Equity Ratio |
0.83 |
Impressive |
Industrial Average |
1.74 |
|
Times Interest Earned |
4.28 |
Impressive |
Industrial Average |
1.37 |
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 4.28 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.10 |
Acceptable |
Industrial Average |
2.83 |
|
Total Assets Turnover |
1.22 |
Satisfactory |
Industrial Average |
1.24 |
|
Inventory Conversion Period |
80.74 |
|
|
|
|
Inventory Turnover |
4.52 |
Impressive |
Industrial Average |
3.78 |
|
Receivables Conversion Period |
22.96 |
|
|
|
|
Receivables Turnover |
15.90 |
Impressive |
Industrial Average |
5.84 |
|
Payables Conversion Period |
23.44 |
|
|
|
The company's Account Receivable Ratio is calculated as 15.90 and 22.28
in 2011 and 2010 respectively. This ratio measures the efficiency of the
company in managing its trade debtors to generate sale. 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
2011 decreased from 2010. This would suggest the company had deteriorated 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 increased from 77 days at the end of 2010 to
81 days at the end of 2011. This represents a negative trend. And Inventory
turnover has decreased from 4.72 times in year 2010 to 4.52 times in year 2011.
The company's Total Asset Turnover is calculated as 1.22 times and 0.93
times in 2011 and 2010 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 Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.38 |
|
UK Pound |
1 |
Rs.82.07 |
|
Euro |
1 |
Rs.70.37 |
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.