MIRA INFORM REPORT
|
Report Date : |
05.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
UNITED COIL
CENTER LIMITED |
|
|
|
|
Registered Office : |
54/10 Moo 7, Soi Thammasiri, Bangna-Trad Road, Km. 25.5, T. Bangsaothong, A. Bangsaothong, Samutprakarn 10540 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
16.11.1989 |
|
|
|
|
Com. Reg. No.: |
0105532110157 [Former: 11014/2532] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer and Distributor of Steel Sheet and Steel Cutting Service. |
|
|
|
|
No. of Employees : |
950 |
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 and address
UNITED
COIL CENTER LIMITED
SUMMARY
BUSINESS
ADDRESS : 54/10
MOO 7, SOI THAMMASIRI,
BANGNA-TRAD ROAD,
KM. 25.5,
T. BANGSAOTHONG, A. BANGSAOTHONG,
SAMUTPRAKARN 10540,
THAILAND
TELEPHONE : [66] 2338-1340,
2708-3170
FAX :
[66] 2338-1342
E-MAIL
ADDRESS : info@ucc.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1989
REGISTRATION
NO. : 0105532110157
[Former: 11014/2532]
TAX
ID NO. : 3101765984
CAPITAL REGISTERED : BHT. 350,000,000
CAPITAL PAID-UP : BHT.
350,000,000
SHAREHOLDER’S PROPORTION : THAI :
17.57%
JAPANESE :
82.43%
FISCAL YEAR CLOSING DATE : MARCH
31 [Former :
DECEMBER 31]
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
HIRONARI TANAKA, JAPANESE
MANAGING DIRECTOR
NO.
OF STAFF : 950
LINES
OF BUSINESS : STEEL
SHEET & STEEL
CUTTING SERVICE
IMPORTER &
DISTRIBUTOR
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 November 16,
1989 as a
private limited company
under the name
style UNITED COIL CENTER LIMITED, by
Thai and Japanese groups. The subject
is a subsidiary
company of Marubeni-Itochu Steel
Inc., Japan to
operate as a
steel service center,
trading and transmutation
of steel such
as blanking, slitting, cutting
and punching. It currently
employs approximately 950
staff.
The subject received
the international standard
ISO 9002 certification.
The subject’s registered
address was initially
at 245 Moo
7, Soi Suksawad
13, Charoennakorn Rd., Bangpakok,
Rajburana, Bangkok 10140.
On December 27,
2002, subject’s registered
address was relocated
to 54/10 Moo 7,
Soi Thammasiri, Bangna-Trad
Rd., K.M. 25.5, T.
Bangsaothong, A. Bangsaothong, Samutprakarn
10540, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Shigeyuki Yabuuchi |
|
Japanese |
57 |
|
Mr. Masahiro Yakokawa |
|
Japanese |
59 |
|
Mr. Haruhiko Ida |
|
Japanese |
57 |
|
Mr. Toyohiko Matsuda |
|
Japanese |
57 |
|
Mr. Toshio Katsuragi |
[x] |
Japanese |
51 |
|
Mr. Chularp Pasupa |
[x] |
Thai |
49 |
|
Mr. Chunate Pasupa |
[x] |
Thai |
55 |
|
Mr. Churat Pasupa |
|
Thai |
56 |
|
Mr. Takehito Kobayashi |
[x] |
Japanese |
49 |
|
Mr. Masayuki Takawa |
|
Japanese |
57 |
|
Mr. Masakatsu Murayama |
|
Japanese |
47 |
|
Mr. Porameth Wongvilai |
[x] |
Thai |
58 |
|
Mr. Hironari Tanaka |
|
Japanese |
56 |
AUTHORIZED
PERSON
Two of the mentioned
directors [x] can jointly sign
on behalf of the
subject
with company’s affixed.
MANAGEMENT
Mr. Hironari Tanaka is
the Managing Director.
He is Japanese
nationality with the
age of 56
years old.
Mr. Chularp Pasupa
is the Deputy
Managing Director.
He is Thai
nationality with the
age of 49 years old.
Mr. Prameth Wongvila
is the General Manager & Factory Manager.
He is Thai
nationality with the
age of 58
years old.
Mr. Toshio Katsuragi is
the General Manager.
He is Japanese
nationality with the
age of 51
years old.
BUSINESS
OPERATION
The subject’s activities
are importer and
distributor of steel sheets,
such as cold
rolled steel sheet,
hot rolled steel
sheet, hot dip
galvanized steel sheet,
electro galvanized steel
sheet, electrical steel
sheet [silicon], and
also provides wide
range of services,
including steel cutting,
slitting, leveler-cut, re-shearing,
blanking, punching of
steel coil and
steel sheet for
construction, automobile and
electric appliance industries.
IMPORT [COUNTRIES]
Most of the
products are imported from
Japan, Singapore, Australia,
Republic of China and Taiwan,
and the rest
are purchased from
local suppliers.
MAJOR SUPPLIERS
Marubeni-Itochu Steel Inc. : Japan
Marubeni-Itochu Steel Pte.
Ltd. : Taiwan
Nishimatsu Co., Ltd . : Japan
SALES [LOCAL]
100% of its products
is sold locally
to manufacturers, wholesalers
and end-users.
MAJOR CUSTOMER
Marubeni Steel Processing
[Thailand] Co., Ltd.: Thailand
PARENT
COMPANY
Marubeni-Itochu Steel Inc.
Address : 4-1 Nihonbashi, 1-Chome,
Chuo-ku, Tokyo, Japan
RELATED
COMPANY
Marubeni Steel Processing
[Thailand] Co., Ltd.
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 to the
past two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
& T/T.
BANKING
Bangkok Bank Public Co., Ltd.
[Head Office :
333 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
[Cholburi Branch :
Cholburi Province]
Bank of Tokyo-Mitsubishi UFJ
Ltd.
[Bangkok Office : 54
North Sathorn Rd.,
Silom, Bangrak, Bangkok 10500]
EMPLOYMENT
The subject employs approximately 950 staff. [office staff and factory
workers]
LOCATION
DETAILS
The premise is
rented for administrative office
and factory I
at the heading
address. Premise is located in industrial area.
The factory II
is located at
700/351, 700/777 Moo
6, Amata Nakorn
Industrial Estate, Bangna-Trad
Road, K.M.57, Donhuaroh,
Muang, Chonburi 20000, Thailand.
Tel : [66]
38 743-777 Fax
: [66] 38
743-774
The factory III
is located at
500/81 Moo 3,
Eastern Seaboard Industrial
Estate, T. Tasith, A. Pluakdaeng, Rayong
21140.
COMMENT
The
subject was formed
in 1989 as an
importer and distributor
of steels. The
subject supplies the
products to industrial
and construction sectors.
Subject reported an outstanding sales in 2012.
Strong local consumption
had seen since
2011 and continued
steady growth.
However,
growth of domestic
consumption in each category has been
slowing down compared
to the previous year’s level
and Thai economy
is expected to
decline under the
burden of economic
sluggish and low confidence
from investors.
FINANCIAL
INFORMATION
The capital was
registered at Bht. 100,000,000 divided into 100,000
shares of Bht.
1,000 each.
The capital was
increased later as
followings:
Bht. 150,000,000
on June 8,
1993
Bht. 250,000,000
on August 19,
1998
Bht. 350,000,000
on June 12, 2001
The latest registered
capital was increased
to Bht. 350,000,000 divided into
350,000 shares of
Bht. 1,000 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
[as at July 29,
2013]
|
NAME |
HOLDING |
% |
|
Marubeni-Itochu Steel Inc.
Nationality: Japanese Address : 4-1 Nihonbashi, 1-Chome,
Chuo-ku, Tokyo, Japan
|
288,505 |
82.43 |
|
Mr. Prasarn Pasupa Nationality: Thai Address : 53-61
Mahapruektharam Rd., Bangrak, Bangkok
10500 |
16,344 |
4.67 |
|
Mr. Churat Pasupa Nationality: Thai Address : 53-61
Mahapruektharam Rd., Bangrak,
Bangkok 10500 |
15,050 |
4.30 |
|
Mr. Chunate Pasupa Nationality: Thai Address : 47-49
Mahapruektharam Rd., Bangrak,
Bangkok 10500 |
15,050 |
4.30 |
|
Mr. Chularp Pasupa Nationality: Thai Address : 246/6
Soi Rungruang, Samsennok,
Huaykwang, Bangkok |
13,300 |
3.80 |
|
Mrs. Valaiporn Pasupa Nationality: Thai Address : 246/6
Soi Rungruang, Samsennok,
Huaykwang, Bangkok |
1,750 |
0.50 |
|
Mr. Kitsuchart Pasupa Nationality: Thai Address : 53-61
Mahapruektharam Rd., Bangrak,
Bangkok 10500 |
1 |
- |
Total Shareholders : 7
Share
Structure
[as at July 29,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
61,495 |
17.57 |
|
Foreign - Japanese |
1 |
288,505 |
82.43 |
|
Total |
7 |
350,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Bongkoch Am-sangiam No.
3684
Note:
On July 24,
2012, the board
committee agreed to
change its financial
fiscal year end
date from December 31
to be March
31, and was
approved by Commercial
Registration Department on
October 9, 2012.
BALANCE
SHEET [BAHT]
The
latest financial figures
published for March
31, 2013 and
December 31, 2012
& 2011 were:
ASSETS
|
Current Assets |
Mar. 31, 2013 |
Dec. 31, 2012 |
Dec. 31, 2011 |
|
|
|
|
|
|
Cash and Cash Equivalents
|
29,497,001 |
24,905,329 |
14,992,962 |
|
Trade Account Receivable
|
4,136,298,006 |
4,013,511,583 |
2,097,618,345 |
|
Other Receivable |
28,706,763 |
20,292,004 |
8,782,682 |
|
Inventories |
3,673,309,835 |
4,105,919,843 |
3,596,816,476 |
|
Other Current Assets
|
39,159,655 |
37,231,648 |
39,460,335 |
|
|
|
|
|
|
Total Current Assets
|
7,906,971,260 |
8,201,860,407 |
5,757,670,800 |
|
Fixed Assets |
1,387,708,957 |
1,369,189,853 |
1,367,424,543 |
|
Intangible Assets |
2,748,414 |
2,967,037 |
4,194,599 |
|
Deferred Income Tax |
36,308,635 |
28,731,011 |
16,272,127 |
|
Other Non-current Assets |
13,107,942 |
13,357,517 |
12,119,518 |
|
Total Assets |
9,346,845,208 |
9,616,105,825 |
7,157,681,587 |
LIABILITIES & SHAREHOLDERS' EQUITY
[BAHT]
|
Current
Liabilities |
Mar. 31, 2013 |
Dec. 31, 2012 |
Dec. 31, 2011 |
|
|
|
|
|
|
Short-term Loan from Financial Institution |
1,965,000,000 |
1,999,000,000 |
1,773,000,000 |
|
Trade Account Payable |
4,531,788,990 |
4,917,164,346 |
2,785,157,509 |
|
Other Payable |
155,281,733 |
98,683,542 |
91,556,837 |
|
Current Portion of Long-term
Loan from Financial Institution |
- |
- |
50,000,000 |
|
Current Portion of
Finance Lease Contract Liabilities |
474,835 |
825,234 |
1,354,517 |
|
Accrued Income Tax |
56,542,482 |
36,005,823 |
28,736,836 |
|
Other Current Liabilities |
42,486,083 |
30,291,062 |
26,877,537 |
|
|
|
|
|
|
Total Current Liabilities |
6,751,574,123 |
7,081,970,007 |
4,756,683,236 |
|
Long-term Loan from Financial Institution |
300,000,000 |
300,000,000 |
300,000,000 |
|
Finance Lease Contract
Liabilities |
- |
- |
825,234 |
|
Employee Benefits Obligation |
22,711,046 |
22,004,930 |
19,429,972 |
|
Total Liabilities |
7,074,285,169 |
7,403,974,937 |
5,076,938,442 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
value authorized, issued
and fully paid share
capital 350,000 shares |
350,000,000 |
350,000,000 |
350,000,000 |
|
|
|
|
|
|
Capital Paid |
350,000,000 |
350,000,000 |
350,000,000 |
|
Retained Earning Appropriated for Statutory Reserve |
35,000,000 |
35,000,000 |
35,000,000 |
|
Unappropriated [Deficit] |
1,887,560,039 |
1,827,130,888 |
1,695,743,145 |
|
Total Shareholders' Equity |
2,272,560,039 |
2,212,130,888 |
2,080,743,145 |
|
Total Liabilities & Shareholders' Equity |
9,346,845,208 |
9,616,105,825 |
7,157,681,587 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
Jan. 1,
2013 - Mar. 31, 2013 |
Dec. 31, 2012 |
Dec. 31, 2011 |
|
|
|
|
|
|
Sales & Service
Income |
4,531,300,552 |
15,978,263,931 |
11,475,379,217 |
|
Gain on Exchange
Rate |
13,029,157 |
- |
- |
|
Other Income |
9,768,432 |
30,933,943 |
28,421,688 |
|
Total Revenues |
4,554,098,141 |
16,009,197,874 |
11,503,800,905 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
4,363,600,683 |
15,269,967,171 |
10,780,522,799 |
|
Selling Expenses |
57,967,120 |
194,465,751 |
142,366,704 |
|
Administrative Expenses |
41,604,432 |
167,922,540 |
150,461,222 |
|
Loss on Exchange Rate |
- |
12,723,058 |
15,683,848 |
|
Total Expenses |
4,463,172,235 |
15,645,078,520 |
11,089,034,573 |
|
|
|
|
|
|
Profit / Loss] before Financial
Cost & Income Tax |
90,925,906 |
364,119,354 |
414,766,332 |
|
Financial Cost |
[16,360,891] |
[74,716,187] |
[39,963,528] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax
|
74,565,015 |
289,403,167 |
374,802,804 |
|
Income Tax |
[14,135,864] |
[69,245,424] |
[105,781,504] |
|
Net Profit / [Loss] |
60,429,151 |
220,157,743 |
269,021,300 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.17 |
1.16 |
1.21 |
|
QUICK RATIO |
TIMES |
0.62 |
0.57 |
0.45 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.27 |
11.67 |
8.39 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.48 |
1.66 |
1.60 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
307.26 |
98.14 |
121.78 |
|
INVENTORY TURNOVER |
TIMES |
1.19 |
3.72 |
3.00 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
333.18 |
91.68 |
66.72 |
|
RECEIVABLES TURNOVER |
TIMES |
1.10 |
3.98 |
5.47 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
379.07 |
117.54 |
94.30 |
|
CASH CONVERSION CYCLE |
DAYS |
261.37 |
72.29 |
94.20 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
96.30 |
95.57 |
93.94 |
|
SELLING & ADMINISTRATION |
% |
2.20 |
2.27 |
2.55 |
|
INTEREST |
% |
0.36 |
0.47 |
0.35 |
|
GROSS PROFIT MARGIN |
% |
4.20 |
4.63 |
6.30 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.01 |
2.28 |
3.61 |
|
NET PROFIT MARGIN |
% |
1.33 |
1.38 |
2.34 |
|
RETURN ON EQUITY |
% |
2.66 |
9.95 |
12.93 |
|
RETURN ON ASSET |
% |
0.65 |
2.29 |
3.76 |
|
EARNING PER SHARE |
BAHT |
17.27 |
62.90 |
76.86 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.76 |
0.77 |
0.71 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.11 |
3.35 |
2.44 |
|
TIME INTEREST EARNED |
TIMES |
5.56 |
4.87 |
10.38 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(71.64) |
39.24 |
|
|
OPERATING PROFIT |
% |
(75.03) |
(12.21) |
|
|
NET PROFIT |
% |
(72.55) |
(18.16) |
|
|
FIXED ASSETS |
% |
1.35 |
0.13 |
|
|
TOTAL ASSETS |
% |
(2.80) |
34.35 |
|
ANNUAL
GROWTH: RISKY
An annual sales growth is -71.64%. Turnover has decreased from THB 15,978,263,931.00
in 2012 to THB 4,531,300,552.00 in 2013. While net profit has decreased from
THB 220,157,743.00 in 2012 to THB 60,429,151.00 in 2013. And total assets has
decreased from THB 9,616,105,825.00 in 2012 to THB 9,346,845,208.00 in 2013.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
4.20 |
Deteriorated |
Industrial
Average |
10.51 |
|
Net Profit Margin |
1.33 |
Impressive |
Industrial Average |
1.12 |
|
Return on Assets |
0.65 |
Deteriorated |
Industrial
Average |
2.16 |
|
Return on Equity |
2.66 |
Deteriorated |
Industrial
Average |
6.33 |
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 4.2%. 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 1.33%, 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. When compared with the
industry average, it was lower, the
company's figure is 0.65%.
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 2.66%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.17 |
Satisfactory |
Industrial
Average |
1.26 |
|
Quick Ratio |
0.62 |
|
|
|
|
Cash Conversion Cycle |
261.37 |
|
|
|
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 1.17 times in 2013, increased from 1.16 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 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 0.62 times in 2013,
increased from 0.57 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 262 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.76 |
Acceptable |
Industrial
Average |
0.69 |
|
Debt to Equity Ratio |
3.11 |
Risky |
Industrial
Average |
2.25 |
|
Times Interest Earned |
5.56 |
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 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 5.56 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 0.76 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 Uptrend
Times Interest Earned Stable
ACTIVITY :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.27 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.48 |
Deteriorated |
Industrial
Average |
1.92 |
|
Inventory Conversion Period |
307.26 |
|
|
|
|
Inventory Turnover |
1.19 |
Deteriorated |
Industrial
Average |
4.10 |
|
Receivables Conversion Period |
333.18 |
|
|
|
|
Receivables Turnover |
1.10 |
Deteriorated |
Industrial
Average |
2.80 |
|
Payables Conversion Period |
379.07 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.10 and 3.98 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 98 days at the
end of 2012 to 307 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 3.72 times in year 2012 to 1.19 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.48 times and 1.66
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 Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.32 |
|
|
1 |
Rs.100.04 |
|
Euro |
1 |
Rs.82.65 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
NIT |
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.