MIRA
INFORM REPORT
|
Report Date : |
27.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
LPN
PLATE MILL PUBLIC
COMPANY LIMITED |
|
|
|
|
Registered Office : |
29th Floor, Lpn Building 1, 333 Vibhavadee-Rangsit Road, Jomphol, Jatujak, Bangkok 10900 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
06.08.1990 |
|
|
|
|
Com. Reg. No.: |
0107539000014 [Former
: Bor. Mor. Jor. 502] |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
manufacturer of
hot rolled coils
with 4 - 8 ft.
in width and
3 - 25 mm. of thickness
and hot rolled
plates with the
widest width in
Asia. |
|
|
|
|
No. of Employees : |
400 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Under Rehabilitation |
|
|
|
|
Payment Behaviour : |
Unknown |
|
|
|
|
Litigation : |
Exists |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30th, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
THAILAND - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand achieved steady growth due largely to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Thailand is trying to maintain growth by encouraging domestic consumption and public investment to offset weak exports in 2012. Unemployment, at less than 1% of the labor force, stands as one of the lowest levels in the world, which puts upward pressure on wages in some industries. Thailand also attracts nearly 2.5 million migrant workers from neighboring countries. The Thai government is implementing a nation-wide 300 baht ($10) per day minimum wage policy and deploying new tax reforms designed to lower rates on middle-income earners. The Thai economy has weathered internal and external economic shocks in recent years. The global economic severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. However, in 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded. In late 2011 growth was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. Industry recovered from the second quarter of 2012 onward with GDP growth at 5.5% in 2012. The government has approved flood mitigation projects worth $11.7 billion, which were started in 2012, to prevent similar economic damage, and an additional $75 billion for infrastructure over the next seven years with a plan to start in 2013.
Source
: CIA
Company name
LPN PLATE
MILL PUBLIC COMPANY
LIMITED
SUMMARY
BUSINESS ADDRESS : 199/9
MOO 4, SUKSAWAD
ROAD,
T.
PAKKLONGBANGPLAKOT, A. PHRASAMUTJAEDI,
SAMUTPRAKARN 10290,
THAILAND
TELEPHONE : [66]
2815-6400-9
FAX : [66]
2815-6427-9
E-MAIL ADDRESS : info@lpnpm.co.th
REGISTRATION ADDRESS : 29th FLOOR,
LPN BUILDING 1,
333 VIBHAVADEE-RANGSIT ROAD,
JOMPHOL,
JATUJAK, BANGKOK
10900, THAILAND
ESTABLISHED : 1990
REGISTRATION
NO. : 0107539000014 [Former
: BOR. MOR. JOR. 502]
TAX
ID NO. : 3101865486
CAPITAL REGISTERED : BHT.
2,523,192,890
CAPITAL PAID-UP BHT.
2,523,192,890
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS PUBLIC LIMITED
COMPANY
EXECUTIVE : DR.
PIPAT PRIDAVIPHAT, THAI
PRESIDENT AND CHIEF EXECUTIVE
OFFICER
NO. OF STAFF : 400
LINES OF
BUSINESS : HOT
ROLLED COILS AND
HOT ROLLED PLATE
MANUFACTURER, DISTRIBUTOR
& 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 August 6,
1990 as a
private limited company
under the name style “LPN
Plate Mill Co.,
Ltd.”, by Thai
groups, in order
to manufacture hot-rolled
coils and hot
rolled plates with
BOI support for
local market. On
January 3, 1996,
the subject’s status
was changed to
a public limited
company under the
name LPN PLATE MILL
PUBLIC COMPANY LIMITED.
It currently employs
approximately 400 staff. Subject
achieved the standard
ISO 9002 certificate in
1998, and also
ISO 14001 and ISO 18001
certificates in 2004.
LPN
Plate Mill Public
Co., Ltd. is
one of LPN
Group of Companies
which was initially
founded by Mr. Banjerd
Pridaviphat, and his
brother, Dr. Pipat
Pridaviphat. They have
participated in the
steel industry for
over 26 years,
beginning as a
steel trader “Lao
Peng Nguan Shop”,
then in 1979
establishing a registered
company named “Thai
Central Steel Co.,
Ltd.” to import
and distribute steel
and various steel
products.
Industrial
Standards
-
ASTM (American
Society for Testing
and Materials)
-
JIS (Japanese
Industrial Standards Committee)
-
EN (Euronorm Standard)
-
ISO (International
Organization for Standardization)
-
AS (Australian Standard)
-
ABS (American Bureau of Shipping)
-
Lloyd’s (Lloyd’s Register)
The
subject’s registered address is
29th Floor, LPN
Building 1, 333 Vibhavadee-Rangsit Rd.,
Jomphol, Jatujak, Bangkok
10900, while the
company’s current operation
address is 199/9
Moo 4, Suksawad
Road, T. Pakklongbangplakot, A. Phrasamutjaedi, Samutprakarn
10290.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Roy Chowndhury Subhajit |
|
Indian |
- |
|
Mr. Suneth Vuthisak |
|
Thai |
49 |
|
Mr. Naruemit Pridaviphat |
|
Thai |
38 |
|
Mrs. Pattranuch Kositcharoenkul |
|
Thai |
35 |
|
Mr. Thitikorn Subboonrod |
[x] |
Thai |
46 |
|
Mr. Pavares Pridaviphat |
|
Thai |
31 |
|
Mrs. Pimvimol Wattanachote |
|
Thai |
36 |
|
Gen. Chettha Tanajaro |
|
Thai |
75 |
|
Mr. Chatchawal Pridaviphat |
[x] |
Thai |
- |
|
Mr. Pripach Limprapruekkul |
|
Thai |
59 |
AUTHORIZED PERSON
Both of the
mentioned directors [x]
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Dr. Pipat Pridaviphat
is the President.
He is Thai
nationality with the
age of 61
years old.
Mr. Naruemit Preedaviphat is
the Vice President.
He is Thai
nationality with the
age of 38
years old.
Mr. Suneth Vuthisak
is the Managing
Director.
He is Thai
nationality with the
age of 49
years old.
Mr. Thitikorn Subboonrod
is the General
Manager & Operation
Manager.
He is Thai
nationality with the
age of 46
years old.
Mr. Pongsak Soonthornvanich is
the Factory Manager.
He is Thai
nationality.
Ms. Kayasith Vijittranon
is the Marketing
& Sales Director.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
of hot rolled
coils with 4 - 8
ft. in width
and 3 - 25 mm. of
thickness and hot
rolled plates with
the widest width
in Asia. The
widths available are
from 3 - 10 ft. and
thicknesses from 6 - 150
mm. The products
are supplied to construction, pipe,
automobile, ship building
and other downstream industries.
The High Quality Products
for a Varied
Demand:
·
High-Strength
Low-Alloy Nb-V Steel
of Structural Quality
Specialty steel to
support structures that require high
strength such as
building structure and bridge
structures.
·
Structural Steel Plate For Use in Ship Construction
(Ordinary Strength)
Structural steel plates
especially for ocean
vessel construction and
other offshore works.
·
Carbon Steel for Pressure Vessel Quality, for
moderate and low temperature service Steel that
can sustain high
pressure both at
moderate and low
temperatures, suitable for
making pressure vessels.
·
Hot
rolled coils with
smooth plain surface
throughout the length
PRODUCTION CAPACITY
400,000 tons per
annum
BRAND NAME
“LPN”
IMPORT [COUNTRIES]
Some of raw
materials and steel
bars are imported
from Germany, Singapore,
India, Hong Kong,
Brazil, Australia, Mexico
and Ukraine, whereas
the majority of
materials is purchased
from local suppliers.
SALES [LOCAL]
95% of its
products is sold
locally to manufacturers, wholesalers
and end-users.
EXPORT [COUNTRIES]
5% of its products is
exported to Malaysia,
Australia, Bangladesh, Vietnam,
India, United Arab
Emirates, Republic of China,
Hong Kong, Laos
and Indonesia.
SUBSIDIARIES & AFFILIATED
COMPANIES
LPN Development Public
Co., Ltd.
Business Type : Land
development & property
business
Lao Peng Nguan
Corporation Ltd.
Business Type : Distributor
of steel products
LITIGATIONS
Bankruptcy and
Receivership
On August 19,
2002, the Central
Bankruptcy Court has
ordered LPN Plate
Mill Public Co.,
Ltd. [Debtor] to enter
into business rehabilitation according
to the lawsuit
red case no. 1321/2545.
On August 6, 2003, the Court approved the business rehabilitation plan and appointed LPN Planner Co., Ltd. to be the Plan Administrator. As a result of such Court order, the power and duties of the Planner shall be vested in the Plan Administrator according to Article 90/59 of Bankruptcy Act B.E. 2483.
On September 29, 2008, the court has approved the plan correction according to Article 90/63 of Bankruptcy Act B.E. 2483.
Others
The subject has
several litigations in
relation to its normal
course of business
operation, but the
management believes that
it would not have significant
affect on the company’s business.
As
of December 31,
2012, the company had been
filed by the creditors of the
various entities. The details were as the followings:
As at
July 4, 2012, the Company was filed in
the District Court for non-payment
bills which payable by cheque at the amount 9.77 million baht. However, the Company recorded a provision of such in its financial statements. The
case is currently in the process of judicial proceedings.
As at
September 24, 2012 and November 23, 2012 the Company was filed
in the District
Court and the Civil
Court for non-payment
bills which payable by cheque at the amount 8.16 million baht. However, the Company recorded a provision of such in its financial statements. The
case is currently in the process of judicial proceedings.
As at
September 24, 2012 and November 23, 2012 the Company was filed in the District
Court and the Civil
Court for non-payment
bills which payable by cheque at the amount 7.31 million baht. However, the Company recorded a provision of such in its financial statements. The
case is currently in the process of judicial proceedings.
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 on the
credit term of
120 days &
T/T.
Exports are against
L/C at sight or
on the credit
term of 120
days & T/T.
BANKING
The
Siam Commercial Bank
Public Co., Ltd.
[Head Office :
9 Ratchadapisek Rd., Ladyao, Jatujak, Bangkok
10900]
Krung
Thai Bank Public
Co., Ltd.
[Head Office :
35 Sukhumvit Rd., Klongtoeynua, Watana,
Bangkok 10110]
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
approximately 400 staff.
LOCATION DETAILS
The premise is owned for operating its
headquarters and factory
on the area
of 176,000 square
meters at the
heading address. Premise
is located in
provincial, on the
outskirts of Bangkok.
Its headquarters was
relocated from 29th Floor,
LPN Building 1, 333
Vibhavadee-Rangsit Rd., Jomphol,
Jatujak, Bangkok, to the current
address in February
2013.
COMMENT
The company is the
leading steel manufacture
in the region
especially hot rolled
plate and hot
rolled coils products.
The
company focuses on
the development of specialty
steel products that can perfectly
fulfill varied demands in
each area of industry
such as construction industry, ship building industry, fabrication
industry and etc.
These products are
manufactured under rigorous
quality control of its laboratory which
has been approved to the satisfaction
of various international
standards such as
ASTM, JIS, BSEN, DIN, ISO,
AS, API, ABS
and Lloyd's.
FINANCIAL INFORMATION
The capital was
registered at Bht. 1,000,000 divided
into 10,000 shares of
Bht. 100 each.
The capital was
increased / decreased later as
followings:
Bht.
800 million in
March 22, 1991
Bht.
1,260 million in
October 25, 1995
Bht.
3,420 million in
January, 1996
Bht.
3,714 million in
1996
Bht.
5,005 million in
1997
Bht.
3,367,220 in 2008
[decreased]
On April 22, 2010, the
capital was increased to Bht. 2,523,192,890 divided
into 252,319,289 shares
of Bht. 10
each with fully
paid.
MAIN SHAREHOLDERS : [as at
July 31, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
LPN Planner Co.,
Ltd. Nationality: Thai Address : 62/19
Soi Pramate, Suriwong
Rd.,
Suriyawongse, Bangrak, Bangkok
|
252,319,014 |
100.00 |
Others
|
275 |
- |
Total Shareholders : 32
Share Structure [as
at July 31,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
31 |
252,319,288 |
100.00 |
|
Foreign - Singaporean |
1 |
1 |
- |
|
Total |
32 |
252,319,289 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Wimolsri Jongudomsombat No.
3899
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 |
82,938,587 |
5,392,412 |
1,689,685 |
|
Trade Accounts &
Notes Receivable - Related
Company |
792,840 |
597,124 |
2,621,070 |
|
- Other
Company |
53,241,527 |
76,990,109 |
420,611,312 |
|
Inventories |
167,880,525 |
302,198,267 |
452,972,125 |
|
Advance Payment for
Goods & Deferred Interest |
- |
32,224,036 |
128,785,211 |
|
Other Current Assets
|
5,950,645 |
28,980,833 |
21,097,506 |
|
|
|
|
|
|
Total Current Assets
|
310,804,124 |
446,382,781 |
1,027,776,909 |
|
Cash at Bank
pledged as a
Collateral |
7,331,677 |
34,354,454 |
46,360,574 |
|
Investment in Securities
available for Sale |
14,944,500 |
10,591,500 |
14,554,500 |
|
Fixed Assets |
3,092,967,450 |
3,276,428,625 |
2,926,187,002 |
|
Non-operating Land |
265,929,942 |
265,929,942 |
265,929,942 |
|
Other Non-Current Assets |
8,204,468 |
19,823,791 |
22,099,815 |
|
Total Assets |
3,700,182,161 |
4,053,511,093 |
4,302,908,742 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Overdue Debts Paid |
169,524,879 |
189,537,499 |
- |
|
Trade Accounts &
Notes Payable - Related
Companies |
78,854,596 |
18,470,438 |
183,332,067 |
|
- Other
Companies |
659,032,751 |
704,477,593 |
630,016,040 |
|
Liabilities under Debt
Restructuring Plan |
3,829,216,409 |
3,613,277,401 |
794,175,092 |
|
Loan from Related Person |
44,123,000 |
57,770,000 |
39,000,000 |
|
Loan from Other Company |
28,350,000 |
- |
- |
|
Other Payable - Related Company |
- |
- |
4,059,450 |
|
Accrued Expenses |
28,110,962 |
28,958,792 |
26,423,853 |
|
Advance Income &
Deposit from Goods |
52,021,265 |
48,876,672 |
16,418,684 |
|
Other Current Liabilities |
68,131,083 |
9,010,260 |
12,315,125 |
|
|
|
|
|
|
Total Current Liabilities |
4,957,364,945 |
4,670,378,655 |
1,705,740,311 |
|
|
|
|
|
|
Current Portion of Trade
Accounts Payable |
- |
- |
6,041,790 |
|
Debt Rehabilitation Plan
Liabilities, net |
- |
- |
2,636,259,655 |
|
Liabilities for Employee Benefits
|
16,504,302 |
19,821,607 |
- |
|
Other Non-current Liabilities |
16,999,183 |
2,944,175 |
263,132 |
|
Total Liabilities |
4,990,868,430 |
4,693,144,437 |
4,348,304,888 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
per par value Authorized, issued
and fully paid share
capital 252,319,289 shares
|
2,523,192,890 |
2,523,192,890 |
2,523,192,890 |
|
|
|
|
|
|
Capital Paid |
2,523,192,890 |
2,523,192,890 |
2,523,192,890 |
|
Discount Value |
[2,519,725,679] |
[2,519,725,679] |
[2,519,725,679] |
|
Surplus on Revaluation
of Assets |
- |
- |
850,601,984 |
|
Unrealized Loss of
Securities Available for
Sale |
- |
- |
[60,445,500] |
|
Retained Earning Appropriated for Statutory Reserve |
3,875,543 |
3,875,543 |
3,875,543 |
|
Unappropriated |
[2,489,328,477] |
[1,910,057,102] |
[842,895,384] |
|
Other Components for Shareholders’ Equity |
1,191,299,454 |
1,263,081,004 |
- |
|
Total Shareholders' Equity |
[1,290,686,269] |
[639,633,344] |
[45,396,146] |
|
Total Liabilities & Shareholders' Equity |
3,700,182,161 |
4,053,511,093 |
4,302,908,742 |
PROFIT &
LOSS ACCOUNT
|
Sale |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales & Service
Income |
1,996,823,024 |
1,395,868,477 |
1,723,064,142 |
|
Other Income |
387,548,486 |
190,953,318 |
1,015,927,227 |
|
Total Sales |
2,384,371,510 |
1,586,821,795 |
2,738,991,369 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
2,207,662,550 |
1,779,556,013 |
1,936,378,436 |
|
Selling Expenses |
16,993,586 |
29,188,941 |
26,090,980 |
|
Administrative Expenses |
101,694,690 |
111,333,689 |
228,849,895 |
|
Doubtful |
329,935,848 |
386,040,054 |
- |
|
Remuneration’s Management |
13,843,800 |
13,603,750 |
18,863,800 |
|
Total Expenses |
2,670,130,474 |
2,319,722,447 |
2,210,183,111 |
|
|
|
|
|
|
Profit / [Loss] before Financial
Cost |
[285,758,964] |
[732,900,652] |
528,808,258 |
|
Financial Cost |
[293,512,411] |
[317,510,383] |
[400,828,882] |
|
|
|
|
|
|
Net Profit / [Loss] |
[579,271,375] |
[1,050,411,035] |
127,979,376 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.06 |
0.10 |
0.60 |
|
QUICK RATIO |
TIMES |
0.03 |
0.02 |
0.25 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.65 |
0.43 |
0.59 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.54 |
0.34 |
0.40 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
27.76 |
61.98 |
85.38 |
|
INVENTORY TURNOVER |
TIMES |
13.15 |
5.89 |
4.27 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
9.73 |
20.13 |
89.10 |
|
RECEIVABLES TURNOVER |
TIMES |
37.50 |
18.13 |
4.10 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
108.96 |
144.49 |
118.76 |
|
CASH CONVERSION CYCLE |
DAYS |
(71.47) |
(62.38) |
55.73 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
110.56 |
127.49 |
112.38 |
|
SELLING & ADMINISTRATION |
% |
5.94 |
10.07 |
14.80 |
|
INTEREST |
% |
14.70 |
22.75 |
23.26 |
|
GROSS PROFIT MARGIN |
% |
8.85 |
(13.81) |
46.58 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(14.31) |
(52.50) |
30.69 |
|
NET PROFIT MARGIN |
% |
(29.01) |
(75.25) |
7.43 |
|
RETURN ON EQUITY |
% |
- |
- |
- |
|
RETURN ON ASSET |
% |
(15.66) |
(25.91) |
2.97 |
|
EARNING PER SHARE |
BAHT |
(2.30) |
(4.16) |
0.51 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
1.35 |
1.16 |
1.01 |
|
DEBT TO EQUITY RATIO |
TIMES |
(3.87) |
(7.34) |
(95.79) |
|
TIME INTEREST EARNED |
TIMES |
(0.97) |
(2.31) |
1.32 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
43.05 |
(18.99) |
|
|
OPERATING PROFIT |
% |
(61.01) |
(238.59) |
|
|
NET PROFIT |
% |
44.85 |
(920.77) |
|
|
FIXED ASSETS |
% |
(5.60) |
11.97 |
|
|
TOTAL ASSETS |
% |
(8.72) |
(5.80) |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is 43.05%. Turnover has increased from THB
1,395,868,477.00 in 2011 to THB 1,996,823,024.00 in 2012. While net profit has increased
from THB -1,050,411,035.00 in 2011 to THB -579,271,375.00 in 2012. And total
assets has decreased from THB 4,053,511,093.00 in 2011 to THB 3,700,182,161.00
in 2012.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.85 |
Impressive |
Industrial Average |
1.58 |
|
Net Profit Margin |
(29.01) |
Deteriorated |
Industrial Average |
0.36 |
|
Return on Assets |
(15.66) |
Deteriorated |
Industrial Average |
0.83 |
|
Return on Equity |
- |
|
Industrial Average |
2.03 |
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 8.85%. 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 -29.01%.
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 -15.66%.
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 |
0.06 |
Risky |
Industrial Average |
1.31 |
|
Quick Ratio |
0.03 |
|
|
|
|
Cash Conversion Cycle |
(71.47) |
|
|
|
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 0.06 times in 2012, decreased from 0.1 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 0.03 times in 2012,
increased from 0.02 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 -72 days.
Trend of the average
competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
1.35 |
Risky |
Industrial Average |
0.59 |
|
Debt to Equity Ratio |
(3.87) |
Risky |
Industrial Average |
1.42 |
|
Times Interest Earned |
(0.97) |
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 higher the percentage means that the company is using less
equity and has stronger leverage position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is -0.98 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 1.35 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 |
0.65 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.54 |
Deteriorated |
Industrial Average |
2.26 |
|
Inventory Conversion Period |
27.76 |
|
|
|
|
Inventory Turnover |
13.15 |
Impressive |
Industrial Average |
5.11 |
|
Receivables Conversion Period |
9.73 |
|
|
|
|
Receivables Turnover |
37.50 |
Impressive |
Industrial Average |
3.82 |
|
Payables Conversion Period |
108.96 |
|
|
|
The company's Account Receivable Ratio is calculated as 37.50 and 18.13 in
2012 and 2011 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 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 62 days at the
end of 2011 to 28 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 5.89 times in year 2011 to 13.15
times in year 2012.
The company's Total Asset Turnover is calculated as 0.54 times and 0.34
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.62.45 |
|
UK Pound |
1 |
Rs.100.86 |
|
Euro |
1 |
Rs.84.50 |
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.