MIRA INFORM REPORT
|
Report Date : |
07.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
MENAM STAINLESS WIRE PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
299
Moo 6, T. Bangpreang, A. Bangbor, Samutprakarn 10560,
|
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
28.09.1989 |
|
|
|
|
Com. Reg. No.: |
0107550000262 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in
manufacturing of stainless steel cold drawn wire and straightened bar |
|
|
|
|
No. of Employees |
280 |
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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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
MENAM STAINLESS
WIRE PUBLIC COMPANY
LIMITED
SUMMARY
BUSINESS
ADDRESS : 299
MOO 6, T. BANGPREANG, A. BANGBOR,
SAMUTPRAKARN 10560,
THAILAND
TELEPHONE : [66] 2725-3999
FAX :
[66] 2725-3939,
2728-3949
E-MAIL
ADDRESS : info@menamstainless.com
sales@menamstainless.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1989
REGISTRATION
NO. : 0107550000262 [Former
: 9202/2532]
TAX
ID NO. : 3101748253
CAPITAL REGISTERED : BHT. 299,000,000
CAPITAL PAID-UP : BHT.
224,000,000
SHAREHOLDER’S PROPORTION : THAI : 85%
FOREIGN :
15%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MS.
RUNGRAT SIRIRATANAPANICH, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 280
LINES
OF BUSINESS : STAINLESS STEEL
WIRE AND RELATED
PRODUCTS
MANUFACTURER, DISTRIBUTOR
AND EXPOTER
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 September
28, 1989 as
a private limited
company under the name
style “Menam Stainless
Wire Ltd.,” by
Thai and foreign
groups, in order
to manufacture wide
range of stainless
steel wire and
related products.
It was
granted a promotional
privilege by Thailand’s Board
of Investment for
the production.
The subject also achieved World Most
Recognition Standard,
Japanese Industrial Standard
(JIS) and the
ISO 9001:2000 certification from SGS
YARSLEY INTERNATIONAL, on
March 22, 2002,
as well as
TS16949 certification by
URS in 2012.
On
December 27, 2007, the
subject’s status was
converted to a
public limited company
under the name MENAM STAINLESS WIRE PUBLIC COMPANY
LIMITED. It currently employs approximately 280
staff.
The subject’s registered address
was initially at 429
Moo 17, Bangplee Industrial
Estate, Bangsaothong, Samutprakarn
10540.
In 2009, the subject’s registered
address was relocated
to 299 Moo 6,
T. Bangpreang, A. Bangbor, Samutprakarn
10560, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Visith Kittiwatanakul |
[x] |
Thai |
67 |
|
Ms. Rungrat Siriratanapanich |
[x] |
Thai |
43 |
|
Mr. Jinkui Saelin |
[x] |
Taiwanese |
75 |
|
Mr. Atipong Viwattanaprasert |
|
Thai |
44 |
|
Mr. Jamorn Rakvanichpong |
|
Thai |
48 |
|
Mr. Piriya Kittiwatanakul |
|
Thai |
34 |
|
Ms. Vilailuck Sakulpakdee |
|
Thai |
61 |
|
Mr. Kasemchai Nithiwannakul |
|
Thai |
66 |
|
Mr. Paisal Srisa-an |
|
Thai |
58 |
|
Mr. Suraphan Viwattanaprasert |
|
Thai |
69 |
AUTHORIZED PERSON
Any two of the mentioned directors [x] can jointly sign
on behalf of the subject with
company’s affixed.
MANAGEMENT
Ms. Rungrat Siriratanapanich is
the Managing Director.
She is Thai
nationality with the
age of 43
years old.
Mr. Vichai Chaemchantuk is
the Factory Manager.
He is Thai
nationality.
Mr. Irin Laosamut is
the Sales & Marketing Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is engaged in manufacturing
of stainless steel cold drawn
wire and straightened bar. Its main 5 products are stainless
steel wire, stainless
profile wire, stainless
automotive exhaust welding
consumable, stainless steel welding consumable
and alloy/carbon steel
under its own
brand “MENAM”.
PRODUCTION CAPACITY
12,000 metric tons
per year
PURCHASE
Most of raw materials, mainly
steel sheet and chemical are
purchased from local
suppliers and agents,
the remaining is imported
from Japan, Taiwan, Republic of China, Australia
and Germany.
SALES
80% of the
products is sold
by wholesale to
dealers and manufacturers.
EXPORT
20%
of its products is
exported to Taiwan,
Republic of China,
Singapore, Indonesia, Malaysia, Hong Kong, Australia, Philippines,
Japan, United Kingdom, France, Russia, Turkey, U.S.A., Argentina, Chile, Germany, Italy and
Middle East countries.
SUBSIDIARY AND AFFILIATED
COMPANY
Menam Machanica Co., Ltd.
Business Type : Manufacturer of
steel structure
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 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BUSINESS
TRANSACTION
The products are
sold both by
cash and credit
with the maximum
credit given at
30-60 days. The subject is not found to have problem
on its account
receivable.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately 280 staff. [office, sales
staff and factory workers]
LOCATION
DETAILS
The premise is rented
for administrative office,
factory and warehouse at the
heading address. Premise
is located in
industrial area.
Branch
office is located
at 429 Moo
17, Bangplee Industrial
estate, T. Bangsaothong,
A. Bangbor,
Samutprakarn 10560.
COMMENT
The
company has been
established over 24 years
of continual research,
development and improvement. Subject is
now recognized as
a world leader
of Stainless Steel
Wire and Bar
produce with products
distributed across the world.
The subject’s business performance ended of the
year 2012 was
solid. Despite overall
country’s economy slowdown,
the subject’s business
has continued expanding
in relation to
strong consumption from
industrial sector.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 60,000,000
divided into 600,000
shares of Bht.100
each.
The
capital was increased
later as follows:
Bht. 224,000,000
on November 22, 2007
Bht. 299,000,000
on January 11,
2008
The
latest registered capital
was increased to
Bht. 299 million,
divided into 299,000,000
shares of Bht.
1 each.
MAIN
SHAREHOLDERS : [as
at January 25,
2014] at Bht.
224,000,000 of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
|
|
Mr. Suraphan Viwattanaprasert Nationality: Thai Address : 1183/8-10
Songwad Road, Samphantawong, Bangkok |
38,218,600 |
17.07 |
|
|
Ms. Monsalai Rakvanichpong Nationality: Thai Address : 37/8
Ploenchit Rd., Lumpini,
Pathumwan, Bangkok |
34,920,000 |
15.59 |
|
|
Mrs. Thanaporn
Pichayachittipong Nationality: Thai Address : 21/3
Trok Rongnamkaeng, Taladnoi, Samphantawong, Bangkok
|
24,320,000 |
10.86 |
|
|
Mr. Jinkui Saelin Nationality: Taiwanese Address : 64
Kwangmin Rd., Wumeichen,
Yinninzen,
Taiwan |
22,400,000 |
10.00 |
|
|
Ms. Rungrat Siriratanapanich Nationality: Thai Address : 70/17
Soi Ramkhamhaeng 164,
Ramkhamhaeng Rd., Minburi,
Bangkok |
22,400,000 |
10.00 |
|
|
Mr. Visith Kittiwatanakul Nationality: Thai Address : 88/3-90
Samphantawong, Bangkok 10100 |
13,440,000 |
6.00 |
|
|
Ms. Chialing Saelin Nationality: Taiwanese Address : 27
Hoping Rd., Huwei,
Yunling, Taiwan |
11,200,000 |
5.00 |
|
|
Ms. Vinita Kittiwatanakul Nationality: Thai Address : 88/3-90
Samphantawong, Bangkok 10100 |
5,261,400 |
2.35 |
|
|
Mr. Peera Kittiwatanakul Nationality: Thai Address : 88/3-90
Samphantawong, Bangkok 10100
|
5,226,700 |
2.33 |
|
|
Mr. Piriya Kittiwatanakul Nationality: Thai Address : 88/3-90
Samphantawong, Bangkok 10100
|
5,226,700 |
2.33 |
|
|
Mr. Nathapol Kittiwatanakul Nationality: Thai Address : 21/3
Trok Rongnamkaeng, Taladnoi,
Samphantawong, Bangkok |
5,226,700 |
2.33 |
|
|
Ms. Suthinee Kittiwatanakul Nationality: Thai Address : 21/3
Trok Rongnamkaeng, Taladnoi,
Samphantawong, Bangkok |
5,226,700 |
2.33 |
|
|
Ms. Natvara Kittiwatanakul Nationality: Thai Address : 88/3-90
Samphantawong, Bangkok 10100
|
5,226,700 |
2.33 |
|
|
Others |
25,706,500 |
11.48 |
|
Total Shareholders : 30
Share Structure [as
at January 25,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
28 |
190,400,000 |
85.00 |
|
Foreign - Taiwanese |
2 |
33,600,000 |
15.00 |
|
Total |
30 |
224,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Athipong Athipongsakul
No. 3500
BALANCE
SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
4,589,699.13 |
26,968,068.41 |
16,661,118.46 |
|
Trade Accounts & Other Receivable |
200,306,613.16 |
201,118,441.53 |
188,072,945.99 |
|
Inventories |
313,203,172.90 |
396,947,724.04 |
375,943,192.07 |
|
Other Current Assets
|
- |
- |
1,079,456.27 |
|
|
|
|
|
|
Total Current Assets
|
518,099,485.19 |
625,034,233.98 |
581,756,712.79 |
|
Deposit for Purchase
of Assets |
- |
- |
1,817,543.15 |
|
Fixed Assets |
506,246,538.98 |
548,469,249.22 |
491,408,162.14 |
|
Intangible Assets |
3,644,262.18 |
5,408,588.78 |
4,651,459.26 |
|
Other Non-current Assets |
238,209.16 |
268,809.16 |
86,240.00 |
|
Total Assets |
1,028,228,495.51 |
1,179,180,881.14 |
1,079,720,117.34 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2010 |
2010 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
386,655,192.46 |
495,936,069.30 |
442,342,743.53 |
|
Trade Accounts &
Other Payable |
98,926,788.18 |
72,256,183.86 |
34,607,155.94 |
|
Hire-purchase Payable of
Assets |
- |
- |
1,943,125.10 |
|
Current Portion of
Long-term Loan from Financial Institution |
54,840,000.00 |
54,840,000.00 |
50,603,638.58 |
|
Accrued Income Tax |
- |
- |
22,446,978.52 |
|
Other Current Liabilities |
- |
10,172,096.26 |
33,137,255.02 |
|
|
|
|
|
|
Total Current Liabilities |
540,421,980.64 |
633,204,349.42 |
585,080,896.69 |
|
Long-term Loan from Financial Institution |
103,450,245.19 |
156,132,453.78 |
161,722,657.89 |
|
Employee Benefit Obligation |
8,603,892.00 |
7,197,725.00 |
- |
|
Total Liabilities |
652,476,117.83 |
796,534,528.20 |
746,803,554.58 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1
par value Authorized & issued share
capital 299,000,000 shares |
299,000,000.00 |
299,000,000.00 |
299,000,000.00 |
|
|
|
|
|
|
Capital Paid |
224,000,000.00 |
224,000,000.00 |
224,000,000.00 |
|
Retained Earning Appropriated for Statutory Reserve |
23,662,992.04 |
23,257,690.80 |
20,416,794.89 |
|
Unappropriated |
128,089,385.64 |
135,388,662.14 |
88,499,767.87 |
|
Total Shareholders' Equity |
375,752,377.68 |
382,646,352.94 |
332,916,562.76 |
|
Total Liabilities & Shareholders' Equity |
1,028,228,495.51 |
1,179,180,881.14 |
1,079,720,117.34 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
1,391,684,892.27 |
1,178,806,352.03 |
1,084,849,594.29 |
|
Gain on Exchange
Rate |
- |
- |
37,634,327.34 |
|
Other Income |
46,023,823.64 |
12,192,943.03 |
12,553,843.75 |
|
Total Revenues |
1,437,708,715.91 |
1,190,999,295.06 |
1,135,037,765.38 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,322,261,414.50 |
989,501,166.03 |
889,332,618.14 |
|
Selling Expenses |
25,443,567.95 |
23,384,796.78 |
22,343,138.30 |
|
Administrative Expenses |
54,073,596.26 |
73,075,168.16 |
36,040,437.81 |
|
Remuneration’s Management |
- |
- |
16,178,723.00 |
|
Loss on Decrement in Value of Inventories |
- |
- |
7,341,250.03 |
|
Total Expenses |
1,401,778,578.71 |
1,085,961,130.97 |
971,236,167.28 |
|
|
|
|
|
|
Profit before Financial
Cost & Income Tax |
35,930,137.20 |
105,038,164.09 |
163,801,598.10 |
|
Financial Cost |
[26,278,129.92] |
[28,836,504.23] |
[25,248,477.02] |
|
|
|
|
|
|
Profit before Income Tax |
9,652,007.28 |
76,201,659.86 |
138,553,121.08 |
|
Income Tax |
[1,545,982.54] |
[20,650,547.68] |
[22,524,727.93] |
|
|
|
|
|
|
Net Profit / [Loss] |
8,106,024.74 |
55,551,112.18 |
116,028,393.15 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.96 |
0.99 |
0.99 |
|
QUICK RATIO |
TIMES |
0.38 |
0.36 |
0.35 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.75 |
2.15 |
2.21 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.35 |
1.00 |
1.00 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
86.46 |
146.42 |
154.29 |
|
INVENTORY TURNOVER |
TIMES |
4.22 |
2.49 |
2.37 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
52.53 |
62.27 |
63.28 |
|
RECEIVABLES TURNOVER |
TIMES |
6.95 |
5.86 |
5.77 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
27.31 |
26.65 |
14.20 |
|
CASH CONVERSION CYCLE |
DAYS |
111.68 |
182.04 |
203.37 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
95.01 |
83.94 |
81.98 |
|
SELLING & ADMINISTRATION |
% |
5.71 |
8.18 |
5.38 |
|
INTEREST |
% |
1.89 |
2.45 |
2.33 |
|
GROSS PROFIT MARGIN |
% |
8.30 |
17.09 |
22.65 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.58 |
8.91 |
15.10 |
|
NET PROFIT MARGIN |
% |
0.58 |
4.71 |
10.70 |
|
RETURN ON EQUITY |
% |
2.16 |
14.52 |
34.85 |
|
RETURN ON ASSET |
% |
0.79 |
4.71 |
10.75 |
|
EARNING PER SHARE |
BAHT |
0.04 |
0.25 |
0.52 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.63 |
0.68 |
0.69 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.74 |
2.08 |
2.24 |
|
TIME INTEREST EARNED |
TIMES |
1.37 |
3.64 |
6.49 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
18.06 |
8.66 |
|
|
OPERATING PROFIT |
% |
(65.79) |
(35.87) |
|
|
NET PROFIT |
% |
(85.41) |
(52.12) |
|
|
FIXED ASSETS |
% |
(7.70) |
11.61 |
|
|
TOTAL ASSETS |
% |
(12.80) |
9.21 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is 18.06%. Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.30 |
Acceptable |
Industrial
Average |
14.13 |
|
Net Profit Margin |
0.58 |
Impressive |
Industrial
Average |
(0.54) |
|
Return on Assets |
0.79 |
Impressive |
Industrial
Average |
(0.70) |
|
Return on Equity |
2.16 |
Impressive |
Industrial
Average |
(1.84) |
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 8.3%. 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 0.58%,
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 in
0.79%, 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 2.16%, 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 : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.96 |
Risky |
Industrial
Average |
0.95 |
|
Quick Ratio |
0.38 |
|
|
|
|
Cash Conversion Cycle |
111.68 |
|
|
|
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 0.96 times in 2012, decreased from 0.99 times, then the company may have
problems meeting its short-term obligations. 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 0.38 times in 2012,
increased from 0.36 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 112 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.63 |
Acceptable |
Industrial
Average |
0.63 |
|
Debt to Equity Ratio |
1.74 |
Risky |
Industrial
Average |
1.69 |
|
Times Interest Earned |
1.37 |
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 1.37 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 0.63 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.75 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.35 |
Impressive |
Industrial
Average |
1.29 |
|
Inventory Conversion Period |
86.46 |
|
|
|
|
Inventory Turnover |
4.22 |
Impressive |
Industrial
Average |
3.62 |
|
Receivables Conversion Period |
52.53 |
|
|
|
|
Receivables Turnover |
6.95 |
Impressive |
Industrial
Average |
6.88 |
|
Payables Conversion Period |
27.31 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.95 and
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 146 days at the
end of 2011 to 86 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 2.49 times in year 2011 to 4.22 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.35 times and 1
time 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 Stable
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
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
: |
RAS |
|
|
|
|
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.