MIRA INFORM REPORT
|
Report Date : |
19.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
THE SIAM UNITED
STEEL [1995] CO., LTD. |
|
|
|
|
Registered Office : |
9 SOI G-5, Eastern Industrial Estate, Pakorn Songkrohraj Road, T. Huaypong, A. Muang, Rayong 21150 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
27.07.1995 |
|
|
|
|
Com. Reg. No.: |
0105538088749 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Engaged in manufacturing and
distributing cold rolled
steel sheet |
|
|
|
|
No. of Employees : |
840 |
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 : |
Good |
|
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) |
|
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
THE SIAM UNITED STEEL [1995] CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 9
SOI G-5, EASTERN
INDUSTRIAL ESTATE,
PAKORN SONGKROHRAJ
ROAD,
T. HUAYPONG,
A. MUANG,
RAYONG 21150,
THAILAND
TELEPHONE : [66] 38
685-155
FAX :
[66] 38
685-133
E-MAIL
ADDRESS : pichetk@sus1995.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1995
REGISTRATION
NO. : 0105538088749
TAX
ID NO. : 3011614761
CAPITAL REGISTERED : BHT. 9,000,000,000
CAPITAL PAID-UP : BHT.
9,000,000,000
SHAREHOLDER’S PROPORTION : FOREIGN : 93.33%
THAI : 06.67%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. HIROAKI SATO,
JAPANESE
MANAGING DIRECTOR
NO.
OF STAFF : 840
LINES
OF BUSINESS : COLD
ROLLED STEEL SHEET
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on July 27,
1995 as a private
limited company under the
name style THE
SIAM UNITED STEEL [1995] CO., LTD.,
by Thai and
foreign groups, with
the business objective
to manufacture and
supply cold rolled
steel sheet to
both domestic and
international markets. It
currently employs approximately
840 staff. Subject was
granted the promotional investment privilege
by Board of
Investment [BOI].
AWARDS/CERTIFICATES
The
prime minister’s industry
award for safety
management in 2000.
The
first of Thailand’s
TIS certified manufacturer
of CRS in
2002.
EIA
awards 20002 from
natural resources and
environment Ministry.
The
subject’s registered address
was initially located
at 1 Siam
Cement Rd., Bangsue,
Bangkok 10800, while
the operation address
was at 9
Soi G-5, Eastern
Seaboard Industrial Estate,
Pakorn Songkrohraj Rd.,
T. Huaypong, A.
Muang, Rayong 21150.
On
October 9, 2012,
its registered address
was relocated to
9 Soi G-5,
Eastern Seaboard Industrial
Estate, Pakorn Songkrohraj
Rd., T. Huaypong,
A. Muang, Rayong 21150,
and this is
the subject’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Payungsak Chartsutthiphol |
|
Thai |
61 |
|
Mr. Bantoon Juicharoen |
|
Thai |
51 |
|
Mr. Atthapong Keturathorn |
|
Thai |
59 |
|
Mr. Jeeradej Satayayuth |
|
Thai |
50 |
|
Mr. Yasumitsu Saeki |
|
Japanese |
58 |
|
Mr. Takahiro Mori |
|
Japanese |
56 |
|
Mr. Hiroshi Uchida |
|
Japanese |
55 |
|
Mr. Masao Ono |
|
Japanese |
55 |
|
Mr. Hiroaki Sato |
|
Japanese |
57 |
|
Mr. Kazunari Okuzono |
|
Japanese |
52 |
|
Mr. Masato Yamada |
|
Japanese |
58 |
|
Mr. Shinpei Asada |
|
Japanese |
54 |
|
Mr. Norio Hironaka |
|
Japanese |
55 |
|
Mr. Cheol Ho Han |
|
Korean |
56 |
|
Mr. Kwang Moo Kim |
|
Korean |
49 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Hiroaki Sato is
the Managing Director.
He is Japanese nationality with
the age of 57 years
old.
Mr. Cheol Ho Han
is the Deputy
Managing Director.
He is Korean
nationality with the
age of 56
years old.
Mr. Bantoon Juicharoen is
the Factory Director.
He is Thai
nationality with the
age of 51
years old.
Mr. Mansuang Klaymanee is
the Logistics Manager.
He is Thai
nationality.
Mr. Chaiyan Kanyanonthachai is
the Production Planning
General Manager.
He is Thai
nationality.
Mr. Vithan Santichaikul is the
Human Resources &
Administration Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
and distributing cold
rolled steel sheet.
The products are
as follows:
·
Cold Rolled
Sheet [CRS] for general
use, such as
automotive body parts,
electrical appliances, steel
furniture, pipe, drum
and etc.
·
Gavalnized
Iron Substrate [GIS] : base
materials for making
galvanized sheet for
construction
·
Tin Mill Black
Plate [TMBP] : base
materials for tin
plate and tin
steel for can
making.
PRODUCTION
1 million tons per
annum
PURCHASE
Raw materials mainly steels
are purchased from
both domestic and
overseas suppliers in
Japan, Germany, Australia
and Singapore.
MAJOR SUPPLIERS
Nippon Steel & Sumitomo Metal
Corporation : Japan
Kawazaki Steel Corporation : Japan
Kobe Steel Ltd. : Japan
SALES
50% of the
products is sold
locally by wholesale
to manufacturers and
end-users.
EXPORT
50% of the
products is also
exported to Japan,
Korea, Hong Kong,
Singapore, Malaysia, Laos, Bangladesh, Myanmar,
Indonesia, Vietnam, Republic
of China and
European countries.
MAJOR
CUSTOMERS
Nippon
Steel Galvanizing [Thailand]
Co., Ltd. : Thailand
Permsin
Steel Works Public
Company Limited :
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
according 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 T/T.
Exports are against
T/T.
BANKING
The Siam Commercial
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately 840 staff.
LOCATION
DETAILS
The
premise is owned
for administrative office,
factory and warehouse
at the heading
address. Premise is
located in industrial
area.
Sales Office is located
on 12th Floor,
Ample Tower, 120
Moo 11, Bangna-Trad Road, Bangna,
Bangkok 10260. Tel.:
[66] 2348-3811-6
COMMENT
The subject was formed in 1995 as
a manufacturer of
Cold Rolled Steel
Sheet. The
subject is one of the Thailand
major cold rolled steel sheet manufacturers. The
subject’s operational
result is high and well-known
and recognized by both local and international
customers in terms of quality and technical services, confirming
the strong confidence among business partners and reflecting
in the outcome and continuous profit amidst
the instability of economy.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 1,000,000
divided into 10,000
shares of Bht. 100
each.
The
capital was increased
later as following:
Bht. 720,000,000 on
September 14, 1995
Bht. 5,000,000,000 on
January 23, 1996
Bht. 6,000,000,000 on
May 22, 1998
Bht. 9,000,000,000 on
November 28, 2001
The
latest registered capital
was increased to
Bht. 9,000 million,
divided into 90,000,000
shares of Bht.
100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 22, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Nippon Steel &
Sumitomo Metal Corporation Nationality: Japanese Address : 6-1
Marunouji, 2-Chome, Chiyoda-ku,
Tokyo, Japan |
49,227,000 |
54.70 |
|
POSCO Nationality: Korean Address : Seoul,
Korea |
11,071,000 |
12.30 |
|
Mitsui & Co.,
Ltd. Nationality: Japanese Address : 2-1
Otemashi, 1-Chome, Chiyoda-ku,
Tokyo, Japan |
7,750,000 |
8.61 |
|
Metal One Corporation Nationality: Japanese Address : 3-23-11
Shiba Minato-ku, Tokyo,
Japan |
6,170,000 |
6.85 |
|
Thai Tinplate Mfg. Co.,
Ltd. Nationality: Thai Address : 33
Moo 10, Poochasamingprai Rd.,
Phrapradaeng, Samutprakarn |
6,000,000 |
6.67 |
|
JFE Steel Corporation Nationality: Japanese Address : 2-3 Uchizaiwai-sho, 2-Chome,
Chiyoda-ku, Tokyo, Japan |
5,100,000 |
5.67 |
|
Sumitomo Corporation Nationality: Japanese Address : 1-8-11
Harumi, Chuo-ku, Tokyo,
Japan |
4,292,000 |
4.77 |
|
Nippon Steel Trading
Co., Ltd. Nationality: Japanese Address : 2-1
Otemashi, 2-Chome, Chiyoda-ku,
Tokyo, Japan |
390,000 |
0.43 |
Total Shareholders : 8
Share Structure [as
at April 22,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
6,000,000 |
6.67 |
|
Foreign |
7 |
84,000,000 |
93.33 |
|
Total |
8 |
90,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Sakda Kaothanthong No. 4628
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 |
24,763,489 |
18,316,641 |
21,798,057 |
|
Trade Accounts Receivable
|
914,410,637 |
710,113,827 |
188,319,541 |
|
Other Receivable |
80,545,745 |
60,130,915 |
173,168,616 |
|
Inventories |
2,991,697,187 |
3,748,787,945 |
3,136,341,068 |
|
Other Current Assets |
- |
- |
33,004,492 |
|
|
|
|
|
|
Total Current Assets
|
4,011,417,058 |
4,537,349,328 |
3,552,631,774 |
|
Non-current Assets Held for Sale |
- |
155,894,993 |
- |
|
Long-term Investment |
- |
- |
25,000,000 |
|
Fixed Assets |
11,236,140,704 |
10,970,575,450 |
11,466,115,032 |
|
Intangible Assets |
65,767,896 |
64,356,414 |
14,445,689 |
|
Advances for Purchase of
Machinery |
46,961,446 |
17,444,643 |
- |
|
Other Non - current Assets |
6,059,113 |
5,136,151 |
5,628,618 |
|
Total Assets |
15,366,346,217 |
15,750,756,979 |
15,063,821,113 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Short-term Loan from Financial Institutions |
2,335,000,000 |
3,651,000,000 |
1,593,000,000 |
|
Trade Accounts Payable
|
3,317,312,829 |
2,558,187,345 |
173,125,918 |
|
Related Company Payable |
- |
- |
2,551,662,785 |
|
Other Payable |
325,213,124 |
249,161,999 |
- |
|
Current Portion of
Long-term Loans from
Financial Institutions |
- |
150,000,000 |
1,000,000,000 |
|
Other Current Liabilities |
- |
- |
176,018,443 |
|
|
|
|
|
|
Total Current Liabilities |
5,977,525,950 |
6,608,349,344 |
5,493,807,176 |
|
Long-term Loan from Financial Institution |
- |
- |
150,000,000 |
|
Employee Benefits Obligation |
100,088,366 |
88,333,724 |
- |
|
Total Liabilities |
6,077,614,316 |
6,696,683,068 |
5,643,807,146 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 90,000,000 shares |
9,000,000,000 |
9,000,000,000 |
9,000,000,000 |
|
|
|
|
|
|
Capital Paid |
9,000,000,000 |
9,000,000,000 |
9,000,000,000 |
|
Retained Earnings Appropriated Statutory Reserve |
87,765,930 |
87,765,930 |
- |
|
Unappropriated |
200,965,971 |
[33,692,019] |
420,013,967 |
|
Total Shareholders' Equity |
9,288,731,901 |
9,054,073,911 |
9,420,013,967 |
|
Total Liabilities &
Shareholders' Equity |
15,366,346,217 |
15,750,756,979 |
15,063,821,113 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
19,627,782,419 |
18,505,002,625 |
18,893,990,220 |
|
Gain on Exchange Rate |
77,036,931 |
- |
400,652,225 |
|
Other Income |
228,363,589 |
33,404,831 |
87,792,072 |
|
Total Revenues |
19,933,182,939 |
18,538,407,456 |
19,382,434,517 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
19,179,101,389 |
18,103,089,353 |
17,104,597,754 |
|
Selling Expenses |
116,874,604 |
96,000,928 |
115,869,855 |
|
Administrative Expenses |
353,862,391 |
354,918,907 |
331,726,587 |
|
Loss on Exchange Rate |
- |
124,481,621 |
- |
|
Total Expenses |
19,649,838,384 |
18,678,490,809 |
17,552,194,196 |
|
|
|
|
|
|
Profit / [Loss] before
Financial Cost & Income
Tax |
283,344,555 |
140,083,353 |
1,830,240,321 |
|
Financial Costs |
[48,686,565] |
[59,265,891] |
[74,921,718] |
|
|
|
|
|
|
Net Profit / [Loss] |
234,657,990 |
[199,349,244] |
1,755,318,603 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.67 |
0.69 |
0.65 |
|
QUICK RATIO |
TIMES |
0.17 |
0.12 |
0.07 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.75 |
1.69 |
1.65 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.28 |
1.17 |
1.25 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
56.94 |
75.58 |
66.93 |
|
INVENTORY TURNOVER |
TIMES |
6.41 |
4.83 |
5.45 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
17.00 |
14.01 |
3.64 |
|
RECEIVABLES TURNOVER |
TIMES |
21.46 |
26.06 |
100.33 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
63.13 |
51.58 |
3.69 |
|
CASH CONVERSION CYCLE |
DAYS |
10.81 |
38.01 |
66.87 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
97.71 |
97.83 |
90.53 |
|
SELLING & ADMINISTRATION |
% |
2.40 |
2.44 |
2.37 |
|
INTEREST |
% |
0.25 |
0.32 |
0.40 |
|
GROSS PROFIT MARGIN |
% |
3.84 |
2.35 |
12.06 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.44 |
(0.76) |
9.69 |
|
NET PROFIT MARGIN |
% |
1.20 |
(1.08) |
9.29 |
|
RETURN ON EQUITY |
% |
2.53 |
(2.20) |
18.63 |
|
RETURN ON ASSET |
% |
1.53 |
(1.27) |
11.65 |
|
EARNING PER SHARE |
BAHT |
2.61 |
(2.21) |
19.50 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.40 |
0.43 |
0.37 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.65 |
0.74 |
0.60 |
|
TIME INTEREST EARNED |
TIMES |
5.82 |
(2.36) |
24.43 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
6.07 |
(2.06) |
|
|
OPERATING PROFIT |
% |
(302.27) |
(107.65) |
|
|
NET PROFIT |
% |
217.71 |
(111.36) |
|
|
FIXED ASSETS |
% |
2.42 |
(4.32) |
|
|
TOTAL ASSETS |
% |
(2.44) |
4.56 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 6.07%. Turnover has increased from THB 18,505,002,625.00
in 2011 to THB 19,627,782,419.00 in 2012. While net profit has increased from
THB -199,349,244.00 in 2011 to THB 234,657,990.00 in 2012. And total assets has
decreased from THB 15,750,756,979.00 in 2011 to THB 15,366,346,217.00 in 2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
3.84 |
Impressive |
Industrial
Average |
1.58 |
|
Net Profit Margin |
1.20 |
Impressive |
Industrial
Average |
0.36 |
|
Return on Assets |
1.53 |
Impressive |
Industrial
Average |
0.83 |
|
Return on Equity |
2.53 |
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. The company’s figure is 3.84%. 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 1.2%,
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 1.53%, 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 2.53%, 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 |
0.67 |
Risky |
Industrial
Average |
1.31 |
|
Quick Ratio |
0.17 |
|
|
|
|
Cash Conversion Cycle |
10.81 |
|
|
|
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 0.67 times in 2012, decreased from 0.69 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 0.17 times in 2012,
increased from 0.12 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 11 days.
Trend of the average
competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.40 |
Impressive |
Industrial
Average |
0.59 |
|
Debt to Equity Ratio |
0.65 |
Impressive |
Industrial
Average |
1.42 |
|
Times Interest Earned |
5.82 |
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 5.82 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 0.4 less than 0.5, most of the company's
assets are financed through equity.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Downtrend
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
1.75 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.28 |
Acceptable |
Industrial
Average |
2.26 |
|
Inventory Conversion Period |
56.94 |
|
|
|
|
Inventory Turnover |
6.41 |
Impressive |
Industrial
Average |
5.11 |
|
Receivables Conversion Period |
17.00 |
|
|
|
|
Receivables Turnover |
21.46 |
Impressive |
Industrial
Average |
3.82 |
|
Payables Conversion Period |
63.13 |
|
|
|
The company's Account Receivable Ratio is calculated as 21.46 and 26.06
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 decreased from 76 days at the
end of 2011 to 57 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 4.83 times in year 2011 to 6.41 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.28 times and 1.17
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.63.14 |
|
|
1 |
Rs.100.48 |
|
Euro |
1 |
Rs.84.36 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.