MIRA
INFORM REPORT
|
Report Date : |
03.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
POSCO-THAINOX PUBLIC
COMPANY LIMITED |
|
|
|
|
Formerly Known As : |
THAINOX STAINLESS
PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
31st Floor, CRC Tower, All Season
Place, 87/2 Wireless Road,
Lumpini, Pathumwan, Bangkok 10330,
|
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
30.07.1990 |
|
|
|
|
Com. Reg. No.: |
0107547000419 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of premium
cold-rolled stainless steel
sheets and coils |
|
|
|
|
No. of Employees : |
547 |
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 : |
Moderate |
|
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 – September 30, 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. 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 recession severely cut Thailand's exports, with most sectors experiencing double-digit drops. In late 2011 Thailand's recovery was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. The government 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 following seven years
|
Source
: CIA |
Company name
POSCO-THAINOX PUBLIC
COMPANY LIMITED
[FORMER : THAINOX STAINLESS
PUBLIC COMPANY LIMITED]
SUMMARY
BUSINESS
ADDRESS : 31st FLOOR,
CRC TOWER, ALL
SEASON PLACE,
87/2 WIRELESS
ROAD, LUMPINI, PATHUMWAN,
BANGKOK 10330,
THAILAND
TELEPHONE : [66] 2250-7061,
2250-7621-32
FAX :
[66] 2250-7633
E-MAIL
ADDRESS : info@thainox.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1990
REGISTRATION
NO. : 0107547000419 [Former : 0107574700411]
CAPITAL REGISTERED : BHT. 7,795,709,100
CAPITAL PAID-UP : BHT.
7,795,709,100
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
HYOUNG SOO OH,
KOREAN
PRESIDENT
NO.
OF STAFF : 547
LINES
OF BUSINESS : COLD-ROLLED STAINLESS
STEEL SHEETS
AND COILS
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was
established on July
30, 1990 as
a private limited
company under the
registered name THAINOX
STEEL LTD., by
a joint venture
between Thai and
foreign groups, in
order to manufacture
and distribute premium
cold rolled stainless
steel sheets and
coils for both
domestic and international
markets. It was initially a
joint venture among
Arcelor group of
France, Japanese Consortium
and the Thai
PM group with
Board of Investment
[BOI] promoted.
In 2004, the
Thai PM group
became the major
shareholder of the
subject, and changed
the status to
a public company
under the name
“THAINOX STAINLESS PUBLIC
COMPANY LIMITED” on April
26, 2004.
On December 14, 2004, the
subject was listed
on the Stock
Exchange of Thailand
under its symbol
“INOX”.
On September 20,
2011, POSCO Ltd.,
the world’s forth
largest steel and
stainless steel maker
acquired Thainox, then
its registered name was
changed to POSCO-THAINOX PUBLIC
COMPANY LIMITED on
November 29, 2011. The subject
currently employs 547 staff.
AWARDS
ISO 9002 : 1994 awarded by
BVQI in 1999
ISO 9001 : 2000 awarded by
BVQI in 2003
ISO/IEC 17025 : 1999 awarded
by TISI in 2004
ISO 14001 : 2004 awarded by
TUSI in 2004
OHSAS 18001 : 1999 awarded
The subject’s registered
address was initially at
CTI Tower. 23rd Floor, 191
Ratchadapisek Rd., Klongtoey,
Bangkok 10110.
In 2004 the
subject’s registered address
was relocated to 31st Floor,
CRC Tower, All Season
Place, 87/2 Wireless
Rd., Lumpini, Pathumwan,
Bangkok 10330, and
this is the
subject’s current operation
address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Jae Tak Bae |
|
Korean |
- |
|
Mr. Chalermchai Mahagitsiri |
|
Thai |
36 |
|
Mr. Kiyotaka Mishima |
|
Japanese |
- |
|
Mr. Hyoung Soo Oh
: Chairman |
[x] |
Korean |
- |
|
Mr. Yeong Hwan Han |
[x] |
Korean |
51 |
|
Mr. Jong Kug Ahn |
|
Korean |
62 |
|
Mr. Jae Hyoung Jung |
|
Korean |
- |
|
Mrs. Apiradi Tantraporn |
|
Thai |
65 |
|
Mr. Chung Hwan Jeong |
[x] |
Korean |
- |
AUTHORIZED PERSON
Two of the
mentioned directors [x]
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Hyoung Soo Oh is
the President.
He is Korean
nationality.
Mr. Dong Jin Li
is the Vice
President.
He is Korean
nationality.
Mr. Yeong Hwan Han
is the Finance
Director.
He is Korean
nationality with the age
of 51 years
old.
Mr. Shung Yong
Han is the
Production Director.
He is Korean
nationality.
Mr. Chung Hwan Jeong
is the POS-TSPC Director.
He is Korean
nationality.
Mr. Nanthachit Thavaraputta is
the External Business
Director.
He is Thai
nationality.
Mr. Sungki Lee is
the Purchasing Director.
He is Korean nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
of premium cold-rolled
stainless steel sheets
and coils, which are
divided into 2
product types: cold
rolled austenitic stainless
steel and cold
rolled ferritic stainless
steel. Both types
have around 0.30 mm.-3
mm. of thickness and
30 mm.- 1,265 mm. of width.
1. Cold Rolled
Austenitic Stainless Steel
This type of
stainless steel is
non-magnetic. In addition
to chromium, typically
at a level
of 1-14%, austenitic
stainless steel contains
nickel, which increases
corrosion resistance and
makes it easy
to fabricate. This
is the most
widely used type
of stainless steel.
Over 70% of
stainless steel consumed
in Asia is austenitic
grade. INOX main
products in this
category include grade
304 304L and grade
316L.
2. Cold Rolled
Ferritic Stainless Steel
This is a
magnetic type of stainless
steel. It has
a low carbon
content and contain
chromium as a
main element, typically
at a level
of 16%-18%. Ferritic
steel has slightly
higher yield strength
than austenitic steel;
therefore, ferritic steel
finds greater use
where there is
a risk of
stress-corrosion cracking. INOX
main products in
this category included
grade 409, 430
and grade 439.
Its products are used in various
industries especially automotive
assembling, construction, foods
containers, household equipments
and electronic products
both domestic and overseas around
60% and 40%
respectively.
PRODUCTION CAPACITY
300,000 tons/year
MAJOR BRANDS
“TNX”
IMPORT [COUNTRIES]
Some of hot-rolled
steel sheet and
coil as well
as machinery and
spare parts are
imported from France,
South Africa, Japan,
Taiwan, Republic of
China and Korea.
MAJOR SUPPLIERS
Nippon Steel &
Sumikin Stainless Corporation : Japan
Arcelor : France
POSCO Ltd. : Korea
Nippon Metal Industrial
Co., Ltd. :
Japan
SALES
60% of the
products is sold
directly to local
customers and dealers.
EXPORT
40% of the
products is exported
through Arcelor Stainless
International Group to over
40 countries such as Republic of
China, Singapore, Malaysia, United States of America, Australia, Middle
East, India, Korea,
Bangladesh, Denmark, Germany,
France, Russia, Turkey,
Egypt, Indonesia, Vietnam,
Philippines and etc.,
as well as
export directly to
POSCO Ltd., Korea.
REVENUE STRUCTURE
[unit
: million baht]
|
|
2013 |
2012 |
||
|
|
Amount |
% |
Amount |
% |
|
Sales |
10,663.1 |
99.5 |
12,950.5 |
98.3 |
|
Profit from exchange
rate |
- |
- |
137.5 |
1.0 |
|
Other income |
52.9 |
0.5 |
84.2 |
0.7 |
|
Total revenue |
10,716.0 |
100.0 |
13,172.2 |
100.0 |
ASSOCIATED COMPANIES
NS-Thainox Auto Co.,
Ltd.
Investment : Subject is holding around 49% of the company’s total shares.
Thai Stainless Component
Co., Ltd.
Business Type : Manufacturer and distributor of stainless
sheets and stainless
component
Investment : Subject
is holding around
51% of the
company’s total shares.
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 30-60-90 days.
Local bills are
paid by cash
or on the
credits term of
30-60-90 days.
Imports are by
L/C at sight
& T/T.
Exports are against
L/C at sight
& T/T on
the credit term
of 30 days.
BANKING
The Siam Commercial Bank
Public Co., Ltd.
[Head Office :
9 Ratchadapisek Rd., Ladyao, Jatujak, Bangkok
10900]
Credit Agricole
Indosuez Bank
[Bangkok Branch
: 152 Wireless
Rd., Lumpini, Bangkok
10330]
Deutsche Bank AG.
[Bangkok Branch : 208
Wireless Rd., Lumpini,
Pathumwan, Bangkok 10330]
Bangkok Bank Public
Co., Ltd.
[Head Office : 333
Silom Rd., Silom,
Bangrak, Bangkok 10500]
Bank of Ayudhya
Public Co., Ltd.
[Head office
: 1222 Rama
3 Rd., Bangpongpang,
Yannawa, Bangkok]
EMPLOYMENT
The subject currently
employs 547 staff
[office staff and
factory workers].
LOCATION DETAILS
The premise is rented
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Factory is located
on the 51
acres of land
at 324 Moo
8, Rayong Industrial Park, Highway
No. 3191, T. Mabkha,
A. Nikompattana, Rayong
21180, Thailand.
Tel : [66]
38 636-125-31, Fax.
[66] 38 636-099.
COMMENT
Posco-Thainox’s manufacturing
facility is the
first and the
most advanced of its
kind in the
entire ASEAN region. The
products have been produced
according to major
international standards. Thainox
stainless steel products
are highly appreciated
in more than
30 countries worldwide,
and can be
categorized into austenitic
and ferritic grades
and are available in
roll and sheet
forms, all of
which meet the
highest demands of
the market.
FINANCIAL INFORMATION
The capital was
registered at Bht.
2,300,000,000 divided into
23,000,000 shares of
Bht. 100 each.
The capital was
increased / decreased later as
followings :
Bht. 5,925,900,000
on December 4,
1998
Bht.
6,968,400,000 on May
25, 1999
Bht. 7,804,104,000
on September 29,
1999
Decreased were : Bht.
4,768,913,280 on May
2, 2000
Bht. 4,321,827,660
on November 6,
2003
Increased were : Bht.
7,670,411,666 on November
12, 2003
Bht. 8,000,000,000
on May 8,
2004
The latest registered
capital was decreased to Bht. 7,795,709,100 divided into
7,795,709,100 shares of
Bht. 1 each
with fully paid.
MAIN SHAREHOLDERS : [as
at March 14,
2014] at Bht. 7,795,709,100 of
capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
POSCO |
5,420,532,219 |
69.53 |
|
POSCO Ltd. |
1,200,000,000 |
15.39 |
|
Mr. Chalermchai Mahagitsiri |
789,570,000 |
10.13 |
|
Nippon Steel & Sumikin Stainless
Steel Corporation |
202,127,100 |
2.59 |
|
Mr. Suthee Limatiboon |
77,570,000 |
1.00 |
|
Others |
105,909,781 |
1.36 |
Total shareholders :
1,008
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Manchupa Singsuksawad No. 6112
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 [Restated] |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents
|
511,133,911 |
973,873,262 |
2,406,182,954 |
|
Current Investment |
1,037,847,950 |
1,420,399,722 |
544,110,936 |
|
Trade Account Receivable
|
1,791,632,612 |
1,525,296,304 |
650,151,274 |
|
Inventories |
3,595,477,202 |
3,827,770,662 |
4,506,258,939 |
|
Other Prepaid Expenses |
14,887,133 |
13,526,276 |
11,733,867 |
|
Input Tax |
131,627,266 |
213,575,511 |
11,305,115 |
|
Other Receivable from
Revenue Department |
- |
60,293,262 |
36,506,340 |
|
Other Current Assets
|
35,553,821 |
19,932,761 |
10,726,116 |
|
|
|
|
|
|
Total Current Assets
|
7,118,159,895 |
8,054,667,760 |
8,176,975,541 |
|
Investment in Associate |
4,900,000 |
4,900,000 |
4,900,000 |
|
Other Long-term Investments |
171,184,227 |
174,835,958 |
15,968,127 |
|
Investment Properties |
- |
58,273,538 |
58,273,538 |
|
Fixed Assets |
4,676,256,699 |
4,796,145,829 |
6,850,598,133 |
|
Restricted Deposits at
Financial Institutions |
- |
1,051,000 |
4,251,000 |
|
Other Non-current Assets |
10,972,372 |
6,937,659 |
6,534,279 |
|
Total Assets |
11,981,473,193 |
13,096,811,744 |
15,117,500,618 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 [Restated] |
2011 |
|
|
|
|
|
|
Short-term Loan from Financial Institution |
246,459,154 |
- |
|
|
Trade Account & Notes Payable |
2,986,273,363 |
3,908,261,593 |
4,011,791,469 |
|
Other Payables to
Related Parties for Purchase of Assets |
- |
94,621,176 |
- |
|
Current Portion of
Long-term Loans from
Financial Institutions |
80,122,590 |
59,473,583 |
72,826,958 |
|
Accrued Expenses |
26,325,471 |
44,167,872 |
75,985,126 |
|
Deposit from Customers |
42,015,825 |
25,285,036 |
80,049,155 |
|
Retention Payable |
804,957 |
1,996,463 |
7,069,591 |
|
Other Payable for
Purchase Assets to Related Parties |
- |
- |
6,955,780 |
|
Other Current Liabilities |
12,692,208 |
13,754,030 |
9,463,703 |
|
|
|
|
|
|
Total Current Liabilities |
3,394,693,568 |
4,147,559,753 |
4,264,141,782 |
|
Long-term Loans from Financial
Institution |
38,991,823 |
119,328,862 |
180,997,949 |
|
Deferred Tax Liabilities |
111,953,836 |
80,709,906 |
- |
|
Employee Benefit Obligations |
88,327,029 |
81,240,993 |
74,351,000 |
|
Total Liabilities |
3,633,966,256 |
4,428,839,514 |
4,519,490,731 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1
par value authorized, issued
and fully paid share
capital 7,795,709,100 shares |
7,795,709,100 |
7,795,709,100 |
7,795,709,100 |
|
|
|
|
|
|
Capital Paid |
7,795,709,100 |
7,795,709,100 |
7,795,709,100 |
|
Premium on Ordinary Shares |
332,131,264 |
332,131,264 |
332,131,264 |
|
Retained Earning Appropriated for Statutory Reserve |
585,000,000 |
585,000,000 |
585,000,000 |
|
Unappropriated |
[393,764,479] |
[78,809,900] |
8,912,087 |
|
Other Components of
Equity |
28,431,052 |
33,941,766 |
1,876,257,436 |
|
Total Shareholders' Equity |
8,347,506,937 |
8,667,972,230 |
10,598,009,887 |
|
Total Liabilities & Shareholders' Equity |
11,981,473,193 |
13,096,811,744 |
15,117,500,618 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 [Restated] |
2011 |
|
|
|
|
|
|
Sales |
10,663,078,546 |
12,950,481,927 |
11,035,016,514 |
|
Interest Income |
35,113,716 |
65,729,804 |
42,936,872 |
|
Net Foreign Exchange
Gain |
- |
137,458,142 |
- |
|
Other Income |
17,827,307 |
18,600,383 |
21,674,165 |
|
Total Revenues |
10,716,019,569 |
13,172,270,256 |
11,099,627,551 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
10,446,288,393 |
12,714,258,705 |
10,895,842,443 |
|
Selling Expenses |
169,217,157 |
225,175,308 |
194,521,467 |
|
Administrative Expenses |
213,597,645 |
167,958,943 |
217,746,842 |
|
Net Foreign Exchange
Loss |
79,405,738 |
- |
88,804,068 |
|
Loss on Disposal of Investment Property |
- |
- |
173,787,345 |
|
Key Management Personnel
Compensation |
74,118,221 |
63,622,028 |
105,183,709 |
|
Finance Costs |
15,725,385 |
16,752,796 |
37,259,248 |
|
Total Expenses |
10,998,352,539 |
13,187,767,780 |
11,713,145,122 |
|
|
|
|
|
|
Profit / [Loss] before Income Tax
|
[282,332,970] |
[15,497,524] |
[613,517,571] |
|
Income Tax |
[32,621,609] |
[23,420,452] |
- |
|
|
|
|
|
|
Profit / [Loss] from Continuing Operations |
[314,954,579] |
[38,917,976] |
[613,517,571] |
|
Loss from Discontinued Operation |
- |
- |
[42,505,933] |
|
Net Profit / [Loss] |
[314,954,579] |
[38,917,976] |
[656,023,504] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.10 |
1.94 |
1.92 |
|
QUICK RATIO |
TIMES |
0.98 |
0.95 |
0.84 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.28 |
2.70 |
1.61 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.89 |
0.99 |
0.73 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
125.63 |
109.89 |
150.96 |
|
INVENTORY TURNOVER |
TIMES |
2.91 |
3.32 |
2.42 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
61.33 |
42.99 |
21.50 |
|
RECEIVABLES TURNOVER |
TIMES |
5.95 |
8.49 |
16.97 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
104.34 |
112.20 |
134.39 |
|
CASH CONVERSION CYCLE |
DAYS |
82.61 |
40.68 |
38.07 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
97.97 |
98.18 |
98.74 |
|
SELLING & ADMINISTRATION |
% |
3.59 |
3.04 |
3.74 |
|
INTEREST |
% |
0.15 |
0.13 |
0.34 |
|
GROSS PROFIT MARGIN |
% |
2.53 |
3.54 |
1.85 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(2.65) |
(0.12) |
(5.56) |
|
NET PROFIT MARGIN |
% |
(2.95) |
(0.30) |
(5.94) |
|
RETURN ON EQUITY |
% |
(3.77) |
(0.45) |
(6.19) |
|
RETURN ON ASSET |
% |
(2.63) |
(0.30) |
(4.34) |
|
EARNING PER SHARE |
BAHT |
(0.04) |
(0.00) |
(0.08) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.30 |
0.34 |
0.30 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.44 |
0.51 |
0.43 |
|
TIME INTEREST EARNED |
TIMES |
(17.95) |
(0.93) |
(16.47) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(17.66) |
17.36 |
|
|
OPERATING PROFIT |
% |
1,721.79 |
(97.47) |
|
|
NET PROFIT |
% |
(709.28) |
94.07 |
|
|
FIXED ASSETS |
% |
(2.50) |
(29.99) |
|
|
TOTAL ASSETS |
% |
(8.52) |
(13.37) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -17.66%. Turnover has decreased from THB
12,950,481,927.00 in 2012 to THB 10,663,078,546.00 in 2013. While net profit
has decreased from THB -38,917,976.00 in 2012 to THB -314,954,579.00 in 2013.
And total assets has decreased from THB 13,096,811,744.00 in 2012 to THB
11,981,473,193.00 in 2013.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
2.53 |
Deteriorated |
Industrial
Average |
17.61 |
|
Net Profit Margin |
(2.95) |
Deteriorated |
Industrial
Average |
0.95 |
|
Return on Assets |
(2.63) |
Deteriorated |
Industrial
Average |
1.35 |
|
Return on Equity |
(3.77) |
Deteriorated |
Industrial
Average |
3.87 |
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 2.53%. 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 -2.95%.
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
-2.63%.
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 -3.77%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
2.10 |
Impressive |
Industrial
Average |
1.26 |
|
Quick Ratio |
0.98 |
|
|
|
|
Cash Conversion Cycle |
82.61 |
|
|
|
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 2.1 times in 2013, increased from 1.94 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 0.98 times in 2013,
increased from 0.95 times, by excluding inventory, the company may have
problems meeting current liabilities.
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 83 days.
Trend of the average
competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
SATISFACTORY
LEVERAGE RATIO
|
Debt Ratio |
0.30 |
Impressive |
Industrial
Average |
0.81 |
|
Debt to Equity Ratio |
0.44 |
Impressive |
Industrial
Average |
2.15 |
|
Times Interest Earned |
(17.95) |
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 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 -17.96 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 0.3 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 Uptrend
Times Interest Earned Stable
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.28 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.89 |
Acceptable |
Industrial
Average |
1.73 |
|
Inventory Conversion Period |
125.63 |
|
|
|
|
Inventory Turnover |
2.91 |
Acceptable |
Industrial
Average |
4.83 |
|
Receivables Conversion Period |
61.33 |
|
|
|
|
Receivables Turnover |
5.95 |
Acceptable |
Industrial
Average |
9.42 |
|
Payables Conversion Period |
104.34 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.95 and 8.49 in
2013 and 2012 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 2013
decreased from 2012. This would suggest the company had deteriorated in the
management of its debt collections.
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has increased from 110 days at the
end of 2012 to 126 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 3.32 times in year 2012 to 2.91 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.89 times and 0.99
times in 2013 and 2012 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 Stable
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.65 |
|
|
1 |
Rs.99.21 |
|
Euro |
1 |
Rs.82.39 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.