MIRA
INFORM REPORT
|
Report Date : |
22.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
UNION PIONEER PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
NG. 1 Moo
13 Bangchan Industrial
Estate, Serithai Road, Minburi,
Bangkok 10510 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
08.10.1973 |
|
|
|
|
Com. Reg. No.: |
0107537001013 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, distributor
and exporter of rubber
thread and rubber
tape, elastic webbing & crochet, elastic
braid and covering
yarn under the brand “VENUS”
|
|
|
|
|
No. of Employees : |
550 |
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 : |
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 crisis 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 AND ADDRESS
UNION PIONEER PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : NG. 1
MOO 13 BANGCHAN
INDUSTRIAL ESTATE,
SERITHAI
ROAD, MINBURI,
BANGKOK
10510, THAILAND
TELEPHONE : [66]
2517-0105-8
FAX :
[66] 2517-9056,
2517-0345
E-MAIL
ADDRESS : elastic@unionpioneer.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1973
REGISTRATION
NO. : 0107537001013 [Former
: BOR.MOR.JOR.348]
TAX
ID NO. : 3101043389
CAPITAL
REGISTERED : BHT.
75,000,000
CAPITAL
PAID-UP : BHT.
75,000,000
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. PONGSAK
THIENGVIBOONVONG, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 550
LINES
OF BUSINESS : ELASTIC
PRODUCTS, RUBBER THREAD AND
TAPE
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
FOR NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was
initially established on
October 8, 1973 as
a private limited
company under the name “Union
Pioneer Co., Ltd.” by Thai
groups, with its aim to
be manufacturer of elastic
products, rubber thread
and rubber tape
in support of
government export policy
to substitute imports. On
April 21, 1978,
it was listed
on the Stock
Exchange of Thailand.
Then, it was
granted investment promotional
privileges from the
Board of Investment
[BOI] in January 1991
and subsequently converted
its status and
name to “UNION
PIONEER PUBLIC COMPANY
LIMITED” on March
30, 1994. It
currently employs approximately
550 staff.
The subject has
successfully received ISO
9001 : 2000 Certification, for
the high quality
standard of product,
and ISO 14001 version
2004 certification for
environmental quality standard
from Bureau Veritas
Quality International [BVQI]
on March 2,
2006, as well
as has been
certified by medical
standards of Food
and Drug Administration [FDA].
The subject registered address
is Ng. 1, Moo 13
Bangchan Industrial Estate,
Serithai Rd., Minburi,
Bangkok 10510, and
this is the
subject’s current operation
address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms.
Dalad Sapthavichaikul |
: Chairman |
Thai |
57 |
|
Mr. Chivin
Chaiphanich |
[x] |
Thai |
67 |
|
Mr. Pongsak Thiengviboonvong |
|
Thai |
57 |
|
Mr. Pradee
Chareonvipatjet |
[x] |
Thai |
68 |
|
Mrs. Supung Tangsujaripunt |
[x] |
Thai |
64 |
|
Mrs. Rapeephan Sanguansis |
[x] |
Thai |
63 |
|
Mr. Preecha Wattanasaranont |
|
Thai |
61 |
|
Mr. Vacharaphong Darakananda |
|
Thai |
48 |
|
Mr. Nantiya Darakananda |
|
Thai |
45 |
AUTHORIZED PERSON
Any two of
the above directors,
except the mentioned
directors [x] can
jointly sign on
behalf of the
subject with the
company’s affixed.
MANAGEMENT
Mr. Pongsak Thienviboonvong is the Managing Director.
He is Thai
nationality with the
age of 57 years
old.
Mr. Komon Iamwatcharin is
the Assistant Managing
Director and Sales-Marketing Division
Manager.
He is Thai
nationality.
Mr. Sumate Sarerojana
is the Factory
Manager.
He is Thai
nationality.
Mr. Apirom Danpatanachaikul is the
Human Resources Division
Manager.
He is Thai
nationality.
Mrs. Yupa Roongphornchai is
the Accounting and
Cost Division Manager.
She is Thai
nationality.
Ms. Yuppares Pongsangiem is
the Finance Division
Manager.
She is Thai
nationality.
Mr. Yanyong Kunasitsiri is
the Quality Assurance
Division Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer,
distributor and exporter of rubber
thread and rubber
tape, elastic webbing & crochet, elastic
braid and covering
yarn under the brand
“VENUS” mainly used
in the baby,
adult diaper industry,
garment industry and
others, as well
as back support
and band-age products.
The products are
used as the followings:
·
Rubber
thread and rubber
tape are used
for the rim
of baby and
adult diaper’s legs and waist, pant’s
legs for gentlemen, swimming suits,
shower cap and
swimming cap and
so on.
·
Elastic
braid are used with
the clothes for
children, for the
rim of pajamas
waist for both
children and adults,
pants’ waist and legs
for both gentlemen
and ladies, fitted
sheet, the pillow for
headrest in the
car, the fitted
hair round elastic
in various colors,
and the components
of shoes, and
able to produce
the rope for
pant’s waist and
shoelaces.
·
Elastic
webbing & crochet and covered
yarn use to be component of underwear for gentlemen and ladies, general
clothes for children and adult, warming suits,
sportswear, healthy products
using elastic and
tape for flask
and bag.
·
Back
support and band-age
under the “VENUS”
brand.
PRODUCTIONS
Total production capacity : 3,166,000
kilograms per annum
PURCHASE
80% of raw
materials mainly rubber
sheet and concentrated
latex are purchased
from local suppliers,
the remaining 20%
is imported from Germany, Taiwan,
Republic of China
and United Kingdom.
MAJOR SUPPLIERS
Saha-Union Public Co., Ltd. : Thailand
Union Fiber Co.,
Ltd. : Thailand
Union Rubber Products
Corporation : Thailand
SALES
60% of the products
is exported to
Japan, U.S.A., Canada,
Republic of China,
Singapore, India, Malaysia,
Netherlands, Vietnam, Hong Kong,
Australia, and the
country in Africa,
Europe, Middle East
region, and the
remaining 40% is
sold locally to
manufacturers and wholesalers.
MAJOR CUSTOMERS
Saha-Union Public Co., Ltd. : Thailand
Thai Wacoal Public
Co., Ltd. : Thailand
Triumph International [Thailand]
Ltd. : Thailand
Union Zip Co.,
Ltd. : Thailand
Union Thai-Nichiban Co., Ltd. : Thailand
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
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
L/C at sight
or T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok]
Kasikornbank Public Co.,
Ltd.
[Head Office
: 1 Kasikorn
Lane, Rajburana Rd.,
Rajburana, Bangkok]
Krung Thai Bank
Public Co., Ltd.
The Siam Commercial
Bank Public Co.,
Ltd.
EMPLOYMENT
The subject currently employs approximately 550 staff comprising office,
sales staff and factory workers.
LOCATION DETAILS
The premise is
owned for operating
an office, factory I and
warehouse at the
heading address in
industrial area.
Factory II is
located at 99
Moo 5, Bangna-Trad
Rd., K.M. 38, T.
Bangsamak,
A. Bangpakong, Chachoengsao 24180.
Warehouse is located
at 70/2 Moo
1, T. Saengtung, A. Khaosaming, Trat
23130.
COMMENT
There is a
continuous demand for the
subject’s products and
its performance is
always profitable for many
consecutive years. The subject’s
products are sold
directly to underwear
industries. Besides, the products
are also exported
to international markets
such as Hong
Kong, Australia, Pakistan,
USA, Sri Lanka, England,
El Salvador and Japan
by its major customer, Saha-Union Public Co., Ltd. However,
market slowdown from
consumption shrink may dent
its sales by
the end of year
2013.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 5,000,000 divided into
5,000 shares of
Bht. 1,000 each.
The capital was
increased later as
followings:
Bht.
12,500,000 on August
25, 1977
Bht.
25,000,000 on March
16, 1978
Bht.
50,000,000 on December
20, 1978
Bht.
75,000,000 on January
31, 1991
The latest increased
capital was Bht.
75,000,000 divided into
7,500,000 shares of
Bht. 10 each with fully
paid.
MAIN SHAREHOLDERS : [as at
April 4, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Saha-Union Public Co., Ltd. |
3,671,820 |
48.96 |
|
Mr. Sumeth Darakananda |
738,440 |
9.84 |
|
Kasikornbank Public Co.,
Ltd. |
673,500 |
8.98 |
|
Bangkok Insurance Public Co.,
Ltd. |
558,600 |
7.45 |
|
Saha-Union Holding Co.,
Ltd. |
282,790 |
3.77 |
|
Mr. Nitiphan Darakananda |
115,000 |
1.53 |
|
Marue Nissan Co.,
Ltd. |
78,000 |
1.04 |
|
Mr. Peera Arunothai |
65,500 |
0.87 |
|
Mr. Somporn Krairerk |
64,450 |
0.86 |
|
Mr. Sophon Viraseranee |
60,000 |
0.80 |
|
Ms. Nukultorn Darakananda |
53,100 |
0.71 |
|
Mr. Amorn Amornpiyasiri |
50,000 |
0.67 |
|
Dinvest Co., Ltd. |
43,090 |
0.57 |
|
Others |
1,045,710 |
13.95 |
Total Shareholders : 587
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Termpong Opanaphan No. 4501
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and cash
equivalents |
3,941,202 |
665,735 |
51,430 |
|
Trade accounts and
receivable |
142,241,393 |
139,145,651 |
161,660,581 |
|
Amounts from related
parties |
- |
- |
135,672 |
|
Inventories |
225,193,577 |
289,821,993 |
242,132,850 |
|
Other current assets
|
4,229,340 |
1,851,289 |
2,210,867 |
|
Total Current Assets
|
375,605,512 |
431,484,668 |
406,191,400 |
|
Non-current assets |
|
|
|
|
|
|
|
- |
|
Property-plant and equipment |
119,627,717 |
130,826,944 |
138,791,469 |
|
Intangible assets-computer Software, net |
236,603 |
211,134 |
236,723 |
|
Other non-current assets
|
102,907 |
104,067 |
94,825 |
|
Total Assets |
495,572,739 |
562,626,813 |
545,314,417 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank overdraft and
short-term loans from financial institutions |
- |
58,000,000 |
22,402,723 |
|
Trade accounts & other
payable |
71,182,349 |
92,195,870 |
81,750,941 |
|
Amounts to related parties |
- |
- |
517,366 |
|
Corporate income tax payable |
6,290,099 |
5,213,024 |
1,862,132 |
|
Accrued expenses |
- |
- |
20,874,767 |
|
Other current liabilities |
1,588,446 |
54,547 |
4,249,889 |
|
Total Current Liabilities |
79,060,894 |
155,463,441 |
131,657,818 |
|
Provision for employees’ compensation and pension
expenses |
46,462,843 |
46,510,747 |
60,264,701 |
|
Total Liabilities |
125,523,737 |
201,974,188 |
191,922,519 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
value authorized, issued
and fully paid share
capital 7,500,000 shares |
75,000,000 |
75,000,000 |
75,000,000 |
|
Capital Paid |
75,000,000 |
75,000,000 |
75,000,000 |
|
Share premium |
30,625,000 |
30,625,000 |
30,625,000 |
|
Retained Earning |
|
|
|
|
Appropriated for statutory
reserve |
18,834,366 |
18,834,366 |
18,834,366 |
|
Unappropriated |
245,589,636 |
236,193,259 |
228,932,532 |
|
Total Shareholders' Equity |
370,049,002 |
360,652,625 |
353,391,898 |
|
Total Liabilities & Shareholders' Equity |
495,572,739 |
562,626,813 |
545,314,417 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
703,653,664 |
785,929,205 |
862,703,825 |
|
Other Income |
37,084,407 |
39,844,276 |
47,633,716 |
|
Total Revenues |
740,738,071 |
825,773,481 |
910,337,541 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of sales
|
620,280,490 |
713,162,241 |
777,771,223 |
|
Selling expenses |
29,829,264 |
32,942,793 |
41,854,659 |
|
Administrative expenses |
39,492,089 |
29,704,481 |
21,436,584 |
|
Remuneration Management |
- |
- |
12,629,248 |
|
Total Expenses |
689,601,843 |
775,809,515 |
853,691,714 |
|
Income before finance cost and corporate Income Tax |
51,136,228 |
49,963,966 |
56,645,827 |
|
Finance cost |
[1,242,825] |
[2,734,141] |
[649,240] |
|
Income before corporate
income tax |
49,893,403 |
47,229,825 |
55,996,587 |
|
Corporate income tax |
[10,497,026] |
[15,461,944] |
[12,953,230] |
|
Net Profit / [Loss] |
39,396,377 |
31,767,881 |
43,043,357 |
BALANCE SHEET [BAHT]
The
latest financial figures
published for September
30, 2013 was :
ASSETS
[Unit
: Thousand Baht]
|
Current Assets |
2013 [Unaudited] |
|
|
|
|
Cash and cash
equivalents |
34,655 |
|
Trade accounts and
other receivable |
138,940 |
|
Inventories |
165,100 |
|
Other current assets
|
2,762 |
|
Total Current Assets
|
341,457 |
|
Non-current assets |
|
|
Restricted investments |
5,979 |
|
Property-plant and equipment |
118,653 |
|
Intangible assets |
157 |
|
Deferred tax assets |
10,181 |
|
Other non-current assets
|
118 |
|
Total Assets |
476,545 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
[Unit : Thousand Baht]
|
Current
Liabilities |
2013 [Unaudited] |
|
|
|
|
Trade accounts & other
payable |
64,283 |
|
Amounts to related parties |
283 |
|
Other current liabilities |
420 |
|
Total Current Liabilities |
64,986 |
|
Provision for long-term
employee benefits |
51,590 |
|
Total Liabilities |
116,576 |
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
Share capital : Baht 10 value authorized, issued
and fully paid share
capital 7,500,000 shares |
75,000 |
|
Capital Paid |
75,000 |
|
Share premium |
30,625 |
|
Retained Earning |
|
|
Appropriated for statutory
reserve |
18,834 |
|
Unappropriated |
235,510 |
|
Total Shareholders' Equity |
359,969 |
|
Total Liabilities & Shareholders' Equity |
476,545 |
PROFIT
& LOSS ACCOUNT
For the nine-month period ended
September 30, 2013
[Unit : Thousand Baht]
|
Revenue |
2013 [Unaudited] |
|
|
|
|
Sales |
496,525 |
|
Other Income |
26,655 |
|
Total Revenues |
523,180 |
|
Expenses |
|
|
|
|
|
Cost of sales
|
441,956 |
|
Selling expenses |
26,215 |
|
Administrative expenses |
32,253 |
|
Total Expenses |
500,424 |
|
Income before finance cost
and corporate income tax |
22,756 |
|
Finance cost |
[523] |
|
Income before corporate
income tax |
22,233 |
|
Corporate income tax |
[4,621] |
|
Net Profit / [Loss] |
17,612 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
4.75 |
2.78 |
3.09 |
|
QUICK RATIO |
TIMES |
1.85 |
0.90 |
1.23 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.88 |
6.01 |
6.22 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.42 |
1.40 |
1.58 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
132.51 |
148.33 |
113.63 |
|
INVENTORY TURNOVER |
TIMES |
2.75 |
2.46 |
3.21 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
73.78 |
64.62 |
68.40 |
|
RECEIVABLES TURNOVER |
TIMES |
4.95 |
5.65 |
5.34 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
41.89 |
47.19 |
38.36 |
|
CASH CONVERSION CYCLE |
DAYS |
164.41 |
165.77 |
143.66 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
88.15 |
90.74 |
90.16 |
|
SELLING & ADMINISTRATION |
% |
9.85 |
7.97 |
7.34 |
|
INTEREST |
% |
0.18 |
0.35 |
0.08 |
|
GROSS PROFIT MARGIN |
% |
17.12 |
14.33 |
15.37 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
7.27 |
6.36 |
6.57 |
|
NET PROFIT MARGIN |
% |
5.60 |
4.04 |
4.99 |
|
RETURN ON EQUITY |
% |
10.65 |
8.81 |
12.18 |
|
RETURN ON ASSET |
% |
7.95 |
5.65 |
7.89 |
|
EARNING PER SHARE |
BAHT |
5.25 |
4.24 |
5.74 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.25 |
0.36 |
0.35 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.34 |
0.56 |
0.54 |
|
TIME INTEREST EARNED |
TIMES |
41.15 |
18.27 |
87.25 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(10.47) |
(8.90) |
|
|
OPERATING PROFIT |
% |
2.35 |
(11.80) |
|
|
NET PROFIT |
% |
24.01 |
(26.20) |
|
|
FIXED ASSETS |
% |
(8.56) |
(5.74) |
|
|
TOTAL ASSETS |
% |
(11.92) |
3.17 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -10.47%. Turnover has decreased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
17.12 |
Deteriorated |
Industrial
Average |
71.21 |
|
Net Profit Margin |
5.60 |
Acceptable |
Industrial
Average |
7.68 |
|
Return on Assets |
7.95 |
Acceptable |
Industrial
Average |
15.61 |
|
Return on Equity |
10.65 |
Deteriorated |
Industrial
Average |
26.61 |
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 17.12%. 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 5.6%. 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 7.95%.
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 10.65%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
4.75 |
Impressive |
Industrial
Average |
1.97 |
|
Quick Ratio |
1.85 |
|
|
|
|
Cash Conversion Cycle |
164.41 |
|
|
|
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 4.75 times in 2012, increased from 2.78 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 1.85 times in 2012,
increased from 0.9 times, although excluding inventory so the company still
have good short-term financial strength.
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 165 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.25 |
Impressive |
Industrial
Average |
0.39 |
|
Debt to Equity Ratio |
0.34 |
Impressive |
Industrial
Average |
0.63 |
|
Times Interest Earned |
41.15 |
Impressive |
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 41.15 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 0.25 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 : SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
5.88 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.42 |
Acceptable |
Industrial
Average |
2.03 |
|
Inventory Conversion Period |
132.51 |
|
|
|
|
Inventory Turnover |
2.75 |
Deteriorated |
Industrial
Average |
8.58 |
|
Receivables Conversion Period |
73.78 |
|
|
|
|
Receivables Turnover |
4.95 |
Impressive |
Industrial
Average |
4.92 |
|
Payables Conversion Period |
41.89 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.95 and
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 148 days at the
end of 2011 to 133 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 2.46 times in year 2011 to 2.75 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.42 times and 1.4
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.62.89 |
|
|
1 |
Rs.101.14 |
|
Euro |
1 |
Rs.84.42 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.