MIRA INFORM REPORT
|
Report Date : |
26.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
THAI-GERMAN PRODUCTS PUBLIC COMPANY LIMITED [TGPRO] |
|
|
|
|
Formerly Known As : |
THAI
STAINLESS PIPE INDUSTRY
[2516] CO., LTD THAI-GERMAN
PRODUCTS CO., LTD |
|
|
|
|
Registered Office : |
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
02.04.1973 |
|
|
|
|
Com. Reg. No.: |
0107537002371 [Former: BOR MOR
JOR 484] |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor &
Exporter of Steel Products |
|
|
|
|
No. of Employees : |
382 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Under Rehabilitation process |
|
|
|
|
Payment Behaviour : |
Slow but Correct |
|
|
|
|
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, 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
THAI-GERMAN
PRODUCTS PUBLIC COMPANY LIMITED [TGPRO]
SUMMARY
BUSINESS ADDRESS : 99
HUAYPONG-NONGBON ROAD,
T.
HUAYPONG, A. MUANG,
RAYONG
21150, THAILAND
TELEPHONE : [66] 38 606-061-5
FAX : [66] 38
606-066
E-MAIL ADDRESS : intsale@tgpro.co.th
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1973
REGISTRATION NO. : 0107537002371 [Former: BOR
MOR JOR 484]
TAX ID NO. : 3271001622
CAPITAL REGISTERED : BHT.
1,166,069,371.20
CAPITAL PAID-UP : BHT.
1,031,740,982.40
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. RACHATA
LEELAPRACHAKUL, THAI
MANAGING DIRECTOR
NO. OF STAFF : 382
LINES OF BUSINESS : STEEL
PRODUCTS
MANUFACTURER, DISTRIBUTOR
& EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was
established on April
12, 1973 as
a private limited
company under registered
name “Thai Stainless Pipe
Industry [2516] Co., Ltd.”, by
Mr. Pracha Leelaprachakul and
family. Thai Stainless
Pipe Industry [2516]
Co., Ltd., is the
first stainless pipe
manufacturer in Thailand
with the initial
production capacity of
600 tons/year. Later
its name was
changed to “Thai-German
Products Co., Ltd.”
[TGP] and its
status was converted into public
limited company under
the name THAI-GERMAN
PRODUCTS PUBLIC COMPANY
LIMITED on June
30, 1994. It
currently employs 382
staff.
TGP received promotion
privilege from the
Board of Investment
on June 15, 1994.
On January 19,
1995, the subject
was listed on
the Stock Exchange
of Thailand.
In May 1997
subject received the
ISO 9002 certificate by
RWTUV, Germany.
The subject’ s registered
address is 99
Huaypong-Nongbon Rd., T.
Huaypong,
A. Muang, Rayong
21150, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Pracha Leelaprachakul |
[x] : Chairman |
Thai |
86 |
|
Mr. Narongchai Akrasanee |
|
Thai |
68 |
|
Mr. Rachata Leelaprachakul |
[x] |
Thai |
55 |
|
Gen. Sittisak Tayparsit |
|
Thai |
65 |
|
Mr. Chiradet Ousawat |
|
Thai |
65 |
|
Mr. Preecha Jarunggidanan |
|
Thai |
67 |
|
Mr. Vichit Vuthisombut |
|
Thai |
72 |
AUTHORIZED PERSON
One of the
above directors [x]
can sign on
behalf of the subject with
company’s affixed.
MANAGEMENT
Mr. Rachata Leelaprachakul is
the Managing Director.
He is Thai
nationality with the
age of 55
years old.
Mr. Apinun Ratchatasombat is
the Deputy Managing
Director.
He is Thai
nationality.
Ms. Jane Leemattanont is
the Assistant Managing
Director.
She is Thai
nationality.
Mr. Keytawan Buachan is
the Plant Director.
He is Thai
nationality.
Ms. Naruemon Pasapong
is the Planning
and Development Director.
She is Thai
nationality.
Ms. Jaidow Rattanapracha is
the Warehouse and
Invoice Control Director.
She is Thai
nationality.
Ms. Usanee Pimpanondh is
the National Sales
Director
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
and distributing wide
range of stainless
products, including industrial
pipe ASTM A-312, sanitary
tube ASTM A-270, precision
ice tube ASTM A-270,
heat exchange tube A-249/A-269, extuba
turbo tube, ornamental
tube, stainless steel
twitter, stainless steel
hartfield, furnibest tube,
stainless steel sheet,
round flat angle
bar, under its
name “TGPRO” brand,
as well as
provide servicing of
missspectro, coil service center
and inspection and
tests.
The subject also provides
manufacturing service of the
products.
The products are
used for boiler, heat
exchange and evaporator
production, in the
field of sugar
refinery, foods, pharmaceutical, and
chemical industry, as
well as construction,
furniture & building
decoration, oil &
gas, petrochemical and
etc.
PRODUCTION
Stainless products : 17,000 tons/annum
PURCHASE
70% of raw
materials such as
stainless steel coil
is purchased from
local supplier, the
remaining 30% is
imported from Taiwan,
Republic of China,
Japan, India, Australia,
Germany and Italy.
MAJOR SUPPLIERS
|
Name |
Country |
|
Posco-Thainox Public Co., Ltd. |
Thailand |
|
Shaviriya Group |
Thailand |
|
Juthawan Metal Co.,
Ltd. |
Thailand |
SALES [LOCAL]
80% of its
products is sold
locally to wholesalers,
end-users and construction contractors
nationwide.
EXPORT [COUNTRIES]
20% of high
pressure enduring stainless
pipe is exported to
United States of America,
Australia, U.K., Philippines,
Malaysia, Singapore, Vietnam,
Pakistan, Turkey, Ireland
and other countries.
MAJOR CUSTOMERS
|
Name |
Country |
|
|
|
|
Silbo Industries Inc. |
U.S.A. |
|
Munyani |
Pakistan |
REVENUE STRUCTURE
[ Company
and consolidates]
[unit
: million baht]
|
|
2012 |
2011 |
||
|
Product/Service |
Amount |
% |
Amount |
% |
|
|
|
|
|
|
|
Domestic Sales |
|
|
|
|
|
Stainless Tube |
1,146 |
89 |
805 |
78 |
|
Stainless Sheet |
106 |
9 |
140 |
14 |
|
Sttainless Bar |
- |
- |
2 |
1 |
|
Manufacture Service |
18 |
1 |
21 |
2 |
|
Other Income |
15 |
1 |
57 |
5 |
|
Total Income |
1,285 |
100 |
1,025 |
100 |
|
Export |
|
|
|
|
|
Stainless Tube |
67 |
96 |
101 |
99 |
|
Stainless Sheet |
2 |
3 |
1 |
1 |
|
Sttainless Bar |
- |
- |
- |
- |
|
Manufacture Service |
- |
- |
- |
- |
|
Other Income |
1 |
1 |
- |
- |
|
Total Income |
70 |
100 |
102 |
100 |
|
Total Revenue |
1,355 |
100 |
1,127 |
100 |
LITIGATION
Bankruptcy and Receivership
On September 7, 1999,
the Central Bankruptcy
Court has ordered
the company in
accordance with a
decided court case No.
For. 11/2542, to rehabilitate
its organization. On
May 18, 2000,
the Court has
approved the company’s
rehabilitation plan and
appointed P L V &
Associates Co., Ltd.,
as the Plan
Administer.
On November 30,
2006, the Central
Bankruptcy Court has
ordered to cancel
from the company’s
rehabilitate plan. However,
the court has
re-ordered to the
company enter into
the rehabilitate plan,
by approved the
company to be
the Plan Adminster,
on December 2,
2010.
In April 2012,
the company has
completed its payment
of its liabilities.
However, it currently
has not left
from the rehabilitation plan.
SUBSIDAIRY COMPANIES
TG Pro High
Grade Co., Ltd.
Business Type : Distributor of
steel products
Investment : The
subject is holding 99% of the
total shares.
TG Pro Trading
Co., Ltd.
Business Type :
Trading company
Investment : The subject is holding
99% of the
total shares.
CREDIT
Sales are by
cash or on
the credit term
of 90 days.
Local bills are
paid by cash
or on the
credits term of
30-60-90 days.
Imports are by
L/C at sight
or on the
credit term of
180 days &
T/T.
Exports are against L/C
at sight or
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom Road,
Silom, Bangrak, Bangkok]
Kasikornbank Public Co., Ltd.
[Head Office
: 1 Kasikorn
Lane, Rajburana Road,
Rajburana, Bangkok]
EMPLOYMENT
The subject employs
382 office staff
and factory workers.
LOCATION DETAILS
The premise is owned
for operating office, factory
& warehouse I on 326,400
sq.m. of area at
the heading address.
Premise is located
in rural area.
Warehouse II is
located at 36 Moo
2, Poochaosamingprai Rd.,
T. Samrong,
A.
Phrapradaeng, Samutprakarn 10130.
Sale office : 10th Flr.,
Ocean Tower I,
170/25-28 Soi Sukhumvit
16, New Ratchada
Rd., Klongtoey, Bangkok 10110
Tel : [66]
261-3300 Fax :
[66] 261-2769-70.
COMMENT
The subject has
been enjoying an
outstanding performance in
previous year.
However, the profit
had slightly dropped. This
was due to
higher energy costs,
the depreciation of new
production activities and etc..
Although its margin
might falls, the
company expected sales to
grow this year 5-10%
in line with
demand of steel
products.
FINANCIAL INFORMATION
The capital was
registered at Bht.
4,000,000 divided into 4,000
shares of Bht.
1,000 each.
The capital was
increased later as
followings :
Bht. 385,000,000 in
June, 1994
Bht. 1,000,000,000
in August, 1995
Decreased Bht.
770,000,000 in February,
1997
Increased Bht.
1,155,000,000 in March,
1997
Bht. 2,000,000,000
in September, 2000
The latest registered
capital was decreased
to Bht. 1,166,069,371.20 divided
into 5,800,346,856 shares
of Bht. 0.20
each, with a
current capital paid-up at
Bht. 1,031,740,982.40 paid-up.
THE SHAREHOLDERS
LISTED WERE
[as at March
18, 2010] at
Bht. 102,133,021.80 of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Rachata Leelaprachakul |
96,641,610 |
18.92 |
|
Mrs. Wanna Suralertrangsee |
87,253,286 |
17.09 |
|
Siam City Bank
Public Company Limited |
45,865,756 |
8.98 |
|
Mr. Supoj Ruangdejvorachai |
15,313,000 |
3.00 |
|
Dr. Srivilai Chatjutamas |
12,000,244 |
2.35 |
|
P L V and Associates
Co., Ltd. |
11,085,994 |
2.17 |
|
Mr. Dol Haetrakul |
9,802,514 |
1.92 |
|
Thai NVDR Co., Ltd. |
6,384,000 |
1.25 |
|
Ms. Supana Ek-udomporn |
6,359,970 |
1.25 |
|
Mr. Morakot Poompanich |
5,385,000 |
1.05 |
|
Deutsche Bank AG,
Bangkok |
5,384,251 |
1.05 |
|
Others |
209,189,484 |
40.97 |
Total Shareholders :
1,280
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT
NO.
Ms. Rungnapa Lertsuwankul No.
3516
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 |
12,164,820 |
13,119,460 |
2,071,147 |
|
Trade accounts & other receivable |
279,524,303 |
290,651,865 |
79,056,718 |
|
Inventories |
491,869,952 |
299,389,728 |
130,937,428 |
|
Other current assets
|
38,232,141 |
29,160,128 |
11,321,286 |
|
|
|
|
|
|
Total Current Assets
|
821,791,216 |
632,321,178 |
223,386,579 |
|
|
|
|
|
|
Cash at bank pledged as a
collateral |
2,434,000 |
2,174,000 |
2,174,000 |
|
Investment in subsidiaries |
32,670,000 |
32,670,000 |
32,670,000 |
|
Fixed assets |
604,598,404 |
559,246,212 |
557,847,492 |
|
Foreclosed properties |
- |
- |
19,775,310 |
|
Intangible assets |
1,549,012 |
136,841 |
272,933 |
|
Other non-current assets |
4,282,691 |
4,862,185 |
2,769,727 |
|
Total Assets |
1,467,325,323 |
1,231,410,416 |
838,896,041 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & short-term loan from financial institutions |
119,345,460 |
- |
85,099,332 |
|
Trade accounts & other
payable |
455,975,458 |
417,793,833 |
352,143,649 |
|
Short-term loan |
- |
- |
77,651,241 |
|
Current portion of
liabilities under finance lease
agreements |
- |
209,509 |
1,600,882 |
|
Current portion
of liabilities under the plan |
- |
- |
1,058,921,148 |
|
Other Current Liabilities |
|
|
|
|
Advance agency
and promotion expenses |
19,737,199 |
14,863,294 |
27,774,397 |
|
Advances received
from customers |
21,948,079 |
51,649,080 |
14,495,196 |
|
|
|
|
|
|
Total Current Liabilities |
617,006,196 |
484,515,716 |
1,617,685,845 |
|
Liabilities under the plan, net |
- |
350,244,166 |
- |
|
Liabilities under finance
lease agreements, net of current
portion |
- |
- |
159,815 |
|
Convertible
bonds under the plan |
- |
- |
455,013 |
|
Reserve for employee benefits
Obligation |
44,190,999 |
28,189,002 |
- |
|
Total Liabilities |
661,197,195 |
862,948,884 |
1,618,300,673 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share capital |
|
|
|
|
Registered 5,830,346,856 ordinary shares of Baht 0.2 each
|
1,166,069,371 |
- |
- |
|
4,122,690,091 ordinary shares of Baht 0.2 each |
- |
824,538,018 |
- |
|
716,835,395 ordinary shares of Baht 0.2 each |
- |
- |
716,835,395 |
|
|
|
|
|
|
Capital Paid |
845,602,152 |
524,258,057 |
510,665,109 |
|
Premium on shares capital |
- |
- |
[250,353,921] |
|
Retained Earnings: Appropriated for statutory reserve |
14,453,135 |
14,453,135 |
14,453,135 |
|
Unappropriated |
[53,927,159] |
[170,249,660] |
[1,054,168,955] |
|
Total Shareholders' Equity |
806,128,128 |
368,461,532 |
[779,404,632] |
|
Total Liabilities & Shareholders' Equity |
1,467,325,323 |
1,231,410,416 |
838,896,041 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales and service
Income |
1,351,959,766 |
542,977,487 |
496,231,846 |
|
Gain from debt restructuring |
48,750,727 |
791,141,030 |
- |
|
Reversal of employee
benefit obligation |
36,348,666 |
- |
- |
|
Earnings estimates by
major insurance mathematical sciences |
13,228,022 |
- |
- |
|
Gain on transfer of assets to pay debt |
- |
- |
8,900,000 |
|
Other income |
1,829,691 |
9,640,414 |
28,224,169 |
|
Total Revenues |
1,452,116,872 |
1,343,758,931 |
533,356,015 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of goods
sold & service |
1,135,010,529 |
460,671,454 |
711,116,505 |
|
Selling expenses |
52,703,019 |
11,343,467 |
14,706,073 |
|
Administrative expenses |
144,855,880 |
122,389,835 |
160,483,283 |
|
Provision for impairment of assets |
- |
- |
308,548,916 |
|
Total Expenses |
1,332,569,428 |
594,404,756 |
1,194,854,777 |
|
|
|
|
|
|
Profit before financial expenses |
119,547,444 |
749,354,175 |
[661,498,762] |
|
Financial expenses |
[3,224,943] |
[601,988] |
[122,167,144] |
|
|
|
|
|
|
Net Profit / [Loss] |
116,322,501 |
748,752,187 |
[783,665,906] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.33 |
1.31 |
0.14 |
|
QUICK RATIO |
TIMES |
0.47 |
0.63 |
0.05 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.24 |
0.97 |
0.89 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.92 |
0.44 |
0.59 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
158.18 |
237.21 |
67.21 |
|
INVENTORY TURNOVER |
TIMES |
2.31 |
1.54 |
5.43 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
75.47 |
195.38 |
58.15 |
|
RECEIVABLES TURNOVER |
TIMES |
4.84 |
1.87 |
6.28 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
146.63 |
331.03 |
180.75 |
|
CASH CONVERSION CYCLE |
DAYS |
87.01 |
101.57 |
(55.39) |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
83.95 |
84.84 |
143.30 |
|
SELLING & ADMINISTRATION |
% |
14.61 |
24.63 |
35.30 |
|
INTEREST |
% |
0.24 |
0.11 |
24.62 |
|
GROSS PROFIT MARGIN |
% |
23.46 |
162.64 |
(35.82) |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
8.84 |
138.01 |
(133.30) |
|
NET PROFIT MARGIN |
% |
8.60 |
137.90 |
(157.92) |
|
RETURN ON EQUITY |
% |
14.43 |
203.21 |
- |
|
RETURN ON ASSET |
% |
7.93 |
60.80 |
(93.42) |
|
EARNING PER SHARE |
BAHT |
0.03 |
0.29 |
(0.31) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.45 |
0.70 |
1.93 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.82 |
2.34 |
(2.08) |
|
TIME INTEREST EARNED |
TIMES |
37.07 |
1,244.80 |
(5.41) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
148.99 |
9.42 |
|
|
OPERATING PROFIT |
% |
(84.05) |
(213.28) |
|
|
NET PROFIT |
% |
(84.46) |
195.54 |
|
|
FIXED ASSETS |
% |
8.11 |
0.25 |
|
|
TOTAL ASSETS |
% |
19.16 |
46.79 |
|
ANNUAL GROWTH : SATISFACTORY
An annual sales growth is 148.99%. Turnover has increased from THB
542,977,487.00 in 2011 to THB 1,351,959,766.00 in 2012. While net profit has
decreased from THB 748,752,187.00 in 2011 to THB 116,322,501.00 in 2012. And
total assets has increased from THB 1,231,410,416.00 in 2011 to THB
1,467,325,323.00 in 2012.
PROFITABILITY : EXCELLENT
PROFITABILITY RATIO
|
Gross Profit Margin |
23.46 |
Impressive |
Industrial Average |
1.58 |
|
Net Profit Margin |
8.60 |
Impressive |
Industrial Average |
0.36 |
|
Return on Assets |
7.93 |
Impressive |
Industrial Average |
0.83 |
|
Return on Equity |
14.43 |
Impressive |
Industrial Average |
2.03 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from revenues after accounting for
the cost of goods sold. Gross profit margin serves as the source for paying
additional expenses and future savings. Gross Profit Margin is 23.46%. 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. Net Profit Margin ratio is 8.6%,
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
7.93%, 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 14.43%, 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 |
1.33 |
Impressive |
Industrial Average |
1.31 |
|
Quick Ratio |
0.47 |
|
|
|
|
Cash Conversion Cycle |
87.01 |
|
|
|
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 1.33 times in 2012, increase from 1.31 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 0.47 times in 2012,
decrease from 0.63 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 88 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.45 |
Impressive |
Industrial Average |
0.59 |
|
Debt to Equity Ratio |
0.82 |
Impressive |
Industrial Average |
1.42 |
|
Times Interest Earned |
37.07 |
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 37.07 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 : SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.24 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.92 |
Deteriorated |
Industrial Average |
2.26 |
|
Inventory Conversion Period |
158.18 |
|
|
|
|
Inventory Turnover |
2.31 |
Deteriorated |
Industrial Average |
5.11 |
|
Receivables Conversion Period |
75.47 |
|
|
|
|
Receivables Turnover |
4.84 |
Impressive |
Industrial Average |
3.82 |
|
Payables Conversion Period |
146.63 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.84 and 1.87 in
2012 and 2011 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate revenue. A lower ratio may indicate
over extension and collection problems. Conversely, a higher ratio may indicate
an overtly stringent policy. In this case, the company's A/R ratio in 2012
increased from 2011. This would suggest the company had good performance in the
management of its debt collections.
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has decreased from 237 days at the
end of 2011 to 158 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 1.54 times in year 2011 to 2.31 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.92 times and 0.44
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.61.63 |
|
|
1 |
Rs.99.94 |
|
Euro |
1 |
Rs.85.14 |
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.