MIRA
INFORM REPORT
|
Report Date : |
13.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
ENERGY EARTH PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
Room 125-128, 12th Floor,
Thai Cc Tower,
|
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|
Country : |
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|
|
|
Financials (as on) : |
31.12.2012 |
|
|
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Date of Incorporation : |
1992 |
|
|
|
|
Com. Reg. No.: |
0107538000240 |
|
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|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
The subject has
been granted a
concession to operate
coal mining in
Myanmar and Indonesia,
as well as
importing, distributing and
re-exporting various kinds
of coals, such
as Anthracite, Bituminous,
Sub-Bituminous and Lignite. |
|
|
|
|
No. of Employees : |
97 |
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 : |
Regular |
|
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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
With a well-developed infrastructure, a free-enterprise economy,
generally pro-investment policies, and strong export industries,
|
Source
: CIA |
company name
ENERGY EARTH
PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : ROOM 125-128, 12th FLOOR,
THAI CC TOWER,
SOUTH SATHORN ROAD,
YANNAWA,
SATHORN,
BANGKOK
10120, THAILAND
TELEPHONE : [66] 2673-9631-3
FAX : [66] 2673-9634
E-MAIL ADDRESS : -
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1992
REGISTRATION NO. : 0107538000240
TAX ID NO. : 3032477239
CAPITAL REGISTERED : BHT.
3,027,615,570
CAPITAL PAID-UP : BHT.
2,956,550,376
SHAREHOLDER’S PROPORTION : -
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. KHAJOHNPONG KHAMDEE,
THAI
MANAGING DIRECTOR
NO. OF STAFF : 97
LINES OF BUSINESS : COAL
MINING OPERATOR, IMPORTER
AND
DISTRIBUTOR OF
COAL PRODUCTS
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 in
1992, originally as a private
limited company under the registered name “Advance Paint and Chemical [Thailand] Company
Limited” by Thai groups,
with the initial
business objective to
manufacture and distribute
wide range of
industrial paints and
coating products, under
various brands, “SEVEN
STAR”, “NEW CONFIDENT”
and “CLIMATE GUARD”.
On April 28,
1995, its status
was changed to
public company, namely
“Advance Paint and
Chemical [Thailand] Public
Company Limited”, then was
listed on the Stock Exchange of
Thailand [SET] in 1996.
On July 5,
2002, the subject
had entered into
the rehabilitation plan,
however, it was
out from the
plan on September
30, 2002.
On December 13, 2010,
its registered name was
changed to ENERGY
EARTH PUBLIC COMPANY LIMITED,
and returned to
trade in MAI
market on May
18, 2011. Its
business objective was
diversified to operate
in mining business.
In 2012, the
subject has entered
into the Joint
Operating Agreement with
East Star Co.,
Ltd., to operate
coal mining in
Myanmar, which expected
to start operation
within 2013.
In February 2013,
the subject was
listed on Frankfurter
Wertpapierborse [FWB], the Frankfurt
Stock Exchange, in
Secondary Listing type.
It currently employs
97 staff.
The subject’s registered
address is Room
125-128, 12th Floor,
Thai CC Tower,
889 South Sathorn
Road, Yananwa, Sathorn,
Bangkok 10120, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Khajohnpong Khamdee |
[x] |
Thai |
41 |
|
Mr. Eknarin Thammaraks |
|
Thai |
37 |
|
Mr. Thongchai Watanasoponwong |
|
Thai |
36 |
|
Mr. Somkiat Sukdheva |
|
Thai |
69 |
|
Mr. Nugoon Sri-in |
[x] |
Thai |
56 |
|
Mr. Phiroon Phihakendr |
[x] |
Thai |
46 |
|
Mr. Phisudhi Phihakendr |
[x] |
Thai |
62 |
|
Mr. Phipat Phihakendr |
[x] |
Thai |
34 |
|
Mr. Phiboon Phihakendr |
[x] |
Thai |
29 |
|
Ms. Kanchana Chakvichitsopon |
[x] |
Thai |
61 |
|
Mr. Thanawat Pratoomsuwan |
[x] |
Thai |
42 |
|
Mr. Parada Bunnag |
|
Thai |
51 |
|
Mr. Suriyaporn Bunchai |
|
Thai |
45 |
AUTHORIZED PERSON
Any two of
the mentioned directors
[x] can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Khajohnpong Khamdee is
the Managing Director.
He is Thai
nationality with the
age of 41
years old.
Mr. Phiroon Phihakendr is
the Deputy Managing
Director.
He is Thai
nationality with the
age of 46
years old.
Mr. Nugoon Sri-in is
the Assistant Managing
Director-Production.
He is Thai
nationality with the
age of 56
years old.
Mr. Thanawat Pratoomsuwan is
the Assistant Managing
Director-Finance and Accounting.
He is Thai
nationality with the
age of 42
years old.
Mr. Paiboon Assawasiriwong is
the Assistant Managing
Director-Sales and International
Sales.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject has
been granted a
concession to operate
coal mining in
Myanmar and Indonesia,
as well as
importing, distributing and
re-exporting various kinds
of coals, such
as Anthracite, Bituminous,
Sub-Bituminous and Lignite.
IMPORT
The products are
imported from Indonesia
and Myanmar.
MAJOR SUPPLIERS
PT. Tri Tunggal
Pitriati :
Indonesia
Energy Perfect Co.,
Ltd. : Thailand
Earth Star Co.,
Ltd. : Thailand
SALES
The products are
supplied to various
industries, including papers,
textiles, foods, energy
generators, power plants
and etc., with 84%
of the products
is re-exported to
Republic of China,
India, Korea, Taiwan
and Japan, the
remaining 16% is
sold locally.
REVENUE STRUCTURE
|
|
2012 |
2011 |
||
|
Income |
Million baht |
% |
Million baht |
% |
|
|
|
|
|
|
|
Local sales |
1,649.95 |
15.86 |
926.65 |
19.78 |
|
Export |
8,756.33 |
84.86 |
3,758.47 |
80.22 |
|
|
|
|
|
|
|
Total Revenue |
10,406.28 |
100.00 |
4,685.12 |
100.00 |
SUBSIDIARY COMPANY
Energy Perfect Co.,
Ltd.
Business Type :
Importer and distributor
of coals
Investment : 99.99%
held by the
subject.
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
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject currently employs 97
staff.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
COMMENT
The company is
become a coal
industrial leader in
Thailand and Asia
with full
supply-chain management and supportive modern technologies,
maintaining an international level of
service, environmental care
and stepping forward
to the world
class market.
The company creates
worldwide coal trading
network both domestically
and internationally with
outstanding performance in
the previous year.
FINANCIAL INFORMATION
The capital was
registered at Bht.
70,000,000 divided into
7,000,000 shares of
Bht. 10 each
with fully paid.
The capital was
increased and decreased
later as follows:
Bht. 140,000,000 on May 2,
1997
Bht. 34,800,250 on July
23, 2002 [decreased]
Bht. 1,674,800,250 on July
26, 2002 [increased]
Bht. 418,980,025 on January 9,
2003 [decreased]
Bht. 222,712,675 on December 14,
2004 [decreased]
Bht. 2,222,712,675 on December
3, 2010 [increased]
Bht. 3,027,615,570 on September
23, 2011 [increased]
The latest registered
capital was increased
to Bht. 3,027,615,570
divided into 3,027,615,570
shares of Bht. 1
each,
with a current
paid-up capital at
Bht. 2,956,550,376.
MAIN SHAREHOLDERS
[as at
July 5, 2013]
at Bht. 2,949,088,091
of capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Khajohnpong Khamdee Nationality: Thai Address : 88/100
Phrayasurent Rd., Bangchan,
Klongsamwa, Bangkok |
365,038,202 |
12.38 |
|
Mr. Phiroon Phihakendr Nationality: Thai Address : 555
Soi Sonamai, Bangpongpang,
Yannawa, Bangkok |
365,038,202 |
12.38 |
|
Mr. Phipat Phihakendr Nationality: Thai Address : 555
Soi Sonamai, Bangpongpang,
Yannawa, Bangkok |
365,038,202 |
12.38 |
|
Mr. Phiboon Phihakendr Nationality: Thai Address : 555
Soi Sonamai, Bangpongpang,
Yannawa, Bangkok |
365,038,202 |
12.38 |
|
Mrs. Voranuch Phihakendr Nationality: Thai Address : - |
182,519,200 |
6.19 |
|
Mr. Phisudhi Phihakendr Nationality: Thai Address : 555
Soi Sonamai, Bangpongpang,
Yannawa, Bangkok |
182,519,200 |
6.19 |
|
UBS AG, Hong
Kong Branch Nationality: Hong Kong Address : - |
82,118,000 |
2.78 |
|
Mr. Krisakorn Techaviboon Nationality: Thai Address : - |
70,858,500 |
2.40 |
|
Thai NVDR Co.,
Ltd. Nationality: Thai Address : - |
54,928,662 |
1.86 |
|
Ms. Kanchana Itthiwithayatorn Nationality: Thai Address : - |
44,700,000 |
1.52 |
|
Other Shareholders |
871,291,721 |
29.54 |
Total Shareholders :
6,936
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Vimolsri Jongudomsombat No.
3899
BALANCE SHEET [BAHT]
The latest
financial figures published as
at December 31,
2012, 2011 &
2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
123,314,512 |
9,974,367 |
- |
|
Trade Accounts & Other Receivable |
1,441,885,915 |
99,381,404 |
449,750 |
|
Inventories |
583,496,344 |
- |
- |
|
Lending & Deferred
Interest to Related Company |
2,445,844,452 |
- |
- |
|
Advance Payment for Goods |
883,346,465 |
108,279,416 |
- |
|
Other Current Assets
|
17,656,361 |
386,758 |
44,426 |
|
|
|
|
|
|
Total Current Assets
|
5,495,544,049 |
218,021,945 |
494,176 |
|
|
|
|
|
|
Cash at Bank pledged as a Collateral |
335,633,131 |
70,789,501 |
150,224 |
|
Investment in Subsidiaries |
1,302,650,620 |
1,302,650,620 |
200,000,000 |
|
Fixed Assets |
3,746,988 |
1,936,456 |
- |
|
Other Non-current Assets |
305,396 |
267,113 |
- |
|
Total Assets |
7,137,880,184 |
1,593,665,635 |
200,644,400 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
3,278,679,290 |
247,105,807 |
- |
|
Trade Accounts & Other Payable
|
624,788,665 |
10,043,748 |
473,796 |
|
Loan & Accrued
Interest from Related Person |
1,016,199 |
- |
- |
|
Current Portion of
Lease Contract Liabilities |
330,460 |
278,254 |
- |
|
Accrued Income Tax |
124,442,082 |
- |
- |
|
Accrued Expenses |
- |
- |
392,287 |
|
Other Current Liabilities |
1,790,974 |
298,859 |
257,566 |
|
|
|
|
|
|
Total Current Liabilities |
4,031,047,670 |
257,726,668 |
1,123,649 |
|
Long-term Loan from Financial Institutions |
620,169 |
950,629 |
- |
|
Employee Benefits Obligation |
1,260,812 |
1,034,271 |
- |
|
Total Liabilities |
4,032,928,651 |
259,711,568 |
1,123,649 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1 par
value authorized, & issued share
capital 3,027,615,570 shares
in 2012 & 2011, 2,222,712,675 shares
in 2010 |
3,027,615,570 |
3,027,615,570 |
2,222,712,675 |
|
|
|
|
|
|
Capital Paid |
2,605,495,683 |
2,554,170,445 |
2,222,712,675 |
|
Premium on Share Capital |
796,214,166 |
772,296,604 |
- |
|
Deficit on Share
Capital |
[1,800,000,000] |
[1,800,000,000] |
[1,800,000,000] |
|
Retained Earnings: Appropriated for Statutory Reserve |
75,200,000 |
- |
- |
|
Unappropriated |
1,428,041,684 |
[192,512,982] |
[223,191,924] |
|
Total Shareholders' Equity |
3,104,951,533 |
1,333,954,067 |
4,245,904,599 199,520,751 |
|
Total Liabilities & Shareholders' Equity |
7,137,880,184 |
1,593,665,635 |
200,644,400 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
3,370,047,225 |
773,210,614 |
3,899,291 |
|
Other Income |
|
|
|
|
Dividend |
1,140,000,000 |
- |
- |
|
Deferred Revenue Liabilities |
- |
- |
13,423,293 |
|
Others |
309,185,408 |
462,117 |
2,465,781 |
|
Total Revenues |
4,819,232,633 |
773,672,731 |
19,788,365 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,618,192,428 |
666,976,367 |
12,686,181 |
|
Selling Expenses |
163,771,030 |
10,189,682 |
35,340 |
|
Administrative Expenses |
82,909,826 |
43,903,107 |
8,255,395 |
|
Remuneration Director |
18,410,000 |
14,057,926 |
1,510,000 |
|
Other Expenses |
8,579,633 |
- |
[24,314,838] |
|
Total Expenses |
2,891,862,917 |
735,127,082 |
1,827,922 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost |
1,927,369,716 |
38,545,649 |
21,616,287 |
|
Financial Cost |
[70,615,769] |
[7,054,874] |
[3,280,848] |
|
|
|
|
|
|
Net Profit / [Loss] |
1,856,753,947 |
31,490,775 |
18,335,439 |
BALANCE SHEET [BAHT]
The latest financial figures published
as at June 30,
2013, was :
ASSETS
[Thousand
Baht]
[Unaudited]
|
Current Assets |
2013 |
|
|
|
|
Cash and Cash Equivalents |
203,492 |
|
Trade Accounts & Other Receivable |
1,981,164 |
|
Inventories |
1,079,018 |
|
Lending & Deferred
Interest to Related Company |
4,093,697 |
|
Advance Payment for Goods |
842,669 |
|
Other Current Assets
|
13,987 |
|
|
|
|
Total Current Assets
|
8,214,027 |
|
|
|
|
Cash at Bank pledged as a Collateral |
338,412 |
|
Investment in Subsidiaries |
1,309,686 |
|
Fixed Assets |
4,662 |
|
Deferred Tax Assets |
474 |
|
Other Non-current Assets |
288 |
|
Total Assets |
9,867,549 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
[Thousand
Baht]
[Unaudited]
|
Current
Liabilities |
2013 |
|
|
|
|
Bank Overdraft & Short-term Loan
from Financial Institutions |
4,919,582 |
|
Trade Accounts & Other Payable |
815,617 |
|
Short-term Loan and Accrued Interest Expenses from Related Companies |
38 |
|
Current Portion of
Lease Contract Liabilities |
434 |
|
Accrued Income Tax |
212,286 |
|
Other Current Liabilities |
1,768 |
|
|
|
|
Total Current Liabilities |
5,949,725 |
|
Liabilities under Hire-Purchase Agreements, Net of Current Portion |
701 |
|
Employee Benefits Obligation |
1,261 |
|
Deferred Tax Liabilities |
961 |
|
Total Liabilities |
5,952,648 |
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
Share capital : Baht 1 par
value authorized, & issued share
capital 3,027,615,570 shares
|
3,027,616 |
|
|
|
|
Capital Paid |
2,105,416 |
|
Retained Earnings [Deficit] |
|
|
Appropriated for Statutory Reserve |
75,200 |
|
Unappropriated |
1,730,443 |
|
Other Components of
Shareholders’ Equity |
3,842 |
|
Total Shareholders' Equity |
3,914,901 |
|
Total Liabilities & Shareholders' Equity |
9,867,549 |
PROFIT & LOSS ACCOUNT
For the six-month period ended
June 30, 2013.
[Thousand
Baht]
[Unaudited]
|
Revenue |
2013 |
|
|
|
|
Sales Income |
4,140,561 |
|
Other Income |
241,646 |
|
Total Revenues |
4,382,207 |
|
Expenses |
|
|
|
|
|
Cost of Goods
Sold |
3,425,780 |
|
Selling Expenses |
111,907 |
|
Administrative Expenses |
53,798 |
|
Management Benefit Expenses |
11,620 |
|
Loss on Exchange Rate |
43,935 |
|
Finance Costs |
87,320 |
|
Total Expenses |
3,734,360 |
|
|
|
|
Profit / [Loss] before Income Tax |
512,968 |
|
Exchange differences on
translating of functional currency |
74,534 |
|
|
|
|
Net Profit / [Loss] |
587,502 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.36 |
0.85 |
0.44 |
|
QUICK RATIO |
TIMES |
0.39 |
0.42 |
0.40 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
899.40 |
399.29 |
- |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.47 |
0.49 |
0.02 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
81.34 |
- |
- |
|
INVENTORY TURNOVER |
TIMES |
4.49 |
- |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
156.17 |
46.91 |
42.10 |
|
RECEIVABLES TURNOVER |
TIMES |
2.34 |
7.78 |
8.67 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
87.10 |
5.50 |
13.63 |
|
CASH CONVERSION CYCLE |
DAYS |
150.41 |
41.42 |
28.47 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
77.69 |
86.26 |
325.35 |
|
SELLING & ADMINISTRATION |
% |
7.32 |
7.00 |
212.62 |
|
INTEREST |
% |
2.10 |
0.91 |
84.14 |
|
GROSS PROFIT MARGIN |
% |
65.31 |
13.80 |
182.14 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
57.19 |
4.99 |
460.61 |
|
NET PROFIT MARGIN |
% |
55.10 |
4.07 |
470.22 |
|
RETURN ON EQUITY |
% |
59.80 |
2.36 |
9.19 |
|
RETURN ON ASSET |
% |
26.01 |
1.98 |
9.14 |
|
EARNING PER SHARE |
BAHT |
71.26 |
1.23 |
0.82 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.57 |
0.16 |
0.01 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.30 |
0.19 |
0.01 |
|
TIME INTEREST EARNED |
TIMES |
27.29 |
5.46 |
5.47 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
335.85 |
19,729.52 |
|
|
OPERATING PROFIT |
% |
4,900.23 |
114.61 |
|
|
NET PROFIT |
% |
5,796.18 |
71.75 |
|
|
FIXED ASSETS |
% |
93.50 |
- |
|
|
TOTAL ASSETS |
% |
347.89 |
694.27 |
|
ANNUAL GROWTH : EXCELLENT
An annual sales growth is 335.85%. Turnover has increased from THB
773,210,614.00 in 2011 to THB 3,370,047,225.00 in 2012. While net profit has increased
from THB 31,490,775.00 in 2011 to THB 1,856,753,947.00 in 2012. And total
assets has increased from THB 1,593,665,635.00 in 2011 to THB 7,137,880,184.00
in 2012.
PROFITABILITY : EXCELLENT
PROFITABILITY RATIO
|
Gross Profit Margin |
65.31 |
Impressive |
Industrial Average |
(2.67) |
|
Net Profit Margin |
55.10 |
Impressive |
Industrial Average |
(0.15) |
|
Return on Assets |
26.01 |
Impressive |
Industrial Average |
(0.30) |
|
Return on Equity |
59.80 |
Impressive |
Industrial Average |
(1.44) |
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 65.31%. 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 55.1%, 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
26.01%, 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 59.8%, 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 |
1.36 |
Impressive |
Industrial Average |
1.28 |
|
Quick Ratio |
0.39 |
|
|
|
|
Cash Conversion Cycle |
150.41 |
|
|
|
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 1.36 times in 2012, increased from 0.85 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 0.39 times in 2012,
decreased from 0.42 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 151 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.57 |
Impressive |
Industrial Average |
0.67 |
|
Debt to Equity Ratio |
1.30 |
Satisfactory |
Industrial Average |
2.24 |
|
Times Interest Earned |
27.29 |
Impressive |
Industrial Average |
(0.82) |
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 27.3 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 0.57 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 : ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
899.40 |
Impressive |
Industrial Average |
(6.44) |
|
Total Assets Turnover |
0.47 |
Deteriorated |
Industrial Average |
3.35 |
|
Inventory Conversion Period |
81.34 |
|
|
|
|
Inventory Turnover |
4.49 |
Acceptable |
Industrial Average |
6.94 |
|
Receivables Conversion Period |
156.17 |
|
|
|
|
Receivables Turnover |
2.34 |
Acceptable |
Industrial Average |
4.19 |
|
Payables Conversion Period |
87.10 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.34 and 7.78 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
decreased from 2011. 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 0 days at the end
of 2011 to 81 days at the end of 2012. This represents a negative trend. And
Inventory turnover has increased from 0 times in year 2011 to 4.49 times in
year 2012.
The company's Total Asset Turnover is calculated as 0.47 times and 0.49 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 Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.59 |
|
|
1 |
Rs.101.56 |
|
Euro |
1 |
Rs.85.15 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.