MIRA INFORM REPORT
|
Report Date : |
21.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
SIAM YAMATO STEEL CO., LTD. |
|
|
|
|
Registered Office : |
7th Floor,
Siam Cement Building
Ii, 1 Siam Cement
Road, Bangsue, Bangkok 10800,
|
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
07.04.1992 |
|
|
|
|
Date of Incorporation : |
31.12.2012 |
|
|
|
|
Com. Reg. No.: |
0105535060339 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of structure
steel, wide plant
steel and hot
rolled shape steel
including H-Beam, I-Beam, Channel, Angle,
Sheet Pile, cut-beam |
|
|
|
|
No. of Employees |
763 |
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 : |
Satisfactory |
|
Payment Behaviour : |
No complaints |
|
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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
SIAM YAMATO STEEL
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 7th FLOOR,
SIAM CEMENT BUILDING
II,
1 SIAM
CEMENT ROAD, BANGSUE,
BANGKOK 10800,
THAILAND
TELEPHONE : [66] 2586-2783-5,
2586-2371-2, 2586-7777
FAX :
[66] 2586-2687,
2586-5224
E-MAIL
ADDRESS : sys@syssteel.com
yamato@syssteel.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1992
REGISTRATION
NO. : 0105535060339 [Former: 6032/2535]
TAX
ID NO. : 3011123294
CAPITAL REGISTERED : BHT. 3,000,000,000
CAPITAL PAID-UP : BHT.
3,000,000,000
SHAREHOLDER’S PROPORTION : THAI :
10.00%
JAPANESE :
90.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PAITOON JIRANANTARAT, THAI
MANAGING DIRECTOR
& MARKETING MANAGER
NO.
OF STAFF : 763
LINES
OF BUSINESS : STEEL PRODUCTS
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 April 7,
1992 as a private limited
company under the
name style “SIAM
YAMATO STEEL CO., LTD.”
by a joint
venture among Yamato
Kogyo Co., Ltd. [64.18%],
Mitsui & Co., Ltd.
[18%], Siam Cement
Public Co., Ltd. [10%], Sumitomo
Corporation [5.82%] and
Mitsui & Co. [Thailand] Ltd. [2%] to produce hot rolled structural
steel and sheet
piles in Thailand.
The
products are certified
an international standard by TIS, JIS
BS, ASTM, EURONORM and AS in order to serve
diverse requirements of
both domestic and
international. It currently
employs 763 staff.
The
subject received the
promotion privilege from
the Board of Investment.
Subject is also
a member of
the Siam Cement
Group.
Certification/Award:
-
ISO 9002
-
ISO/IEC
Guide 25
-
TIS 1227-1996
-
JIS G 3101,
G 3106, G 3136
-
TIS 1390-1996
-
TUV
Certificate
The subject’s registered
address is 7th Floor,
Siam Cement Building
II, 1 Siam Cement Rd., Bangsue, Bangkok 10800, and
this is the
subject’s current operation
address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Chaovalit Ekabut |
|
Thai |
55 |
|
Mr. Damri Tanchevawong |
|
Thai |
61 |
|
Mr. Hiroyuki Inoue |
|
Japanese |
69 |
|
Mr. Makoto Horie |
|
Japanese |
55 |
|
Mr. Thanawong Areerachakul |
|
Thai |
50 |
|
Mr. Paitoon Jiranantarat |
|
Thai |
51 |
|
Mr. Takafumi Yoshida |
|
Japanese |
59 |
|
Mr. Tetjiro Wada |
|
Japanese |
- |
|
Mr. Mikio Kobayashi |
|
Japanese |
- |
AUTHORIZED PERSON
Any two of the above
directors can jointly
sign on behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Paitoon Jiranantarat is
the Managing Director
& Marketing Manager.
He is Thai
nationality with the
age of 51 years old.
Mr. Jesada Plangmanee
is the Production
Manager.
He is Thai
nationality.
Mr. Chaiwat Lertamornvichaiyuth is
the Personnel Manager.
He is Thai
nationality.
Mr.
Chalermkiat Itsarangkoon Na
Ayudhya is the
Project Sales &
Technical Manager.
He is Thai
nationality.
Mr. Peerapat Saengsunee is
the Engineering Manager.
He is Thai
nationality.
Mr. Sukij Chanama is
the Procurement Manager.
He is Thai
nationality.
Mr. Pongsak Helom is
the Sales Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
of structure steel,
wide plant steel
and hot rolled
shape steel including
H-Beam, I-Beam, Channel, Angle,
Sheet Pile, cut-beam
and etc. Its
production has been
received manufacturing technology
from Yamato Kogyo Co., Ltd.
in Japan. The
subject also services
a cut-to-length for
other than the
standard 6 m. and
12 m.
PRODUCTION
1,100,000 tons/year
MAJOR BRAND
“SYS”
PURCHASE
Most of raw materials
are purchased from
local suppliers, the
remaining including scrap
and iron are
imported from Japan, Germany, Republic of
China, Taiwan, Malaysia, India, South
Africa and Korea.
MAJOR SUPPLIERS
Yamato Kogyo Ltd. : Japan
Mitsui & Co.,
Ltd. : Japan
Sumitomo Corporation
[Thailand] Ltd. : Thailand
SALES [LOCAL]
85% of its
products is sold
locally to Thai
Government, construction contractor, wholesalers,
retailers and end-users.
EXPORT
15% of the
products is exported
to Laos, Indonesia,
Taiwan, Vietnam, Philippines,
Malaysia, Australia, Republic
of China, South
Africa, Myanmar, Hong
Kong, Korea, India
and the country
in Middle East.
MAJOR CUSTOMER
Kwang Hoa Commercial
Co., Ltd. : Thailand
PARENT COMPANY
Yamato Kogyo
Co., Ltd. : Japan
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.
SUBSIDIARY AND AFFILIATED
COMPANY
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
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 days.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office : 333
Silom Rd., Silom,
Bangrak, Bangkok 10500]
Kasikornbank Public Co., Ltd.
[Head Office : 1
Kasikorn Lane, Rajburana
Rd., Rajburana, Bangkok 10140]
Siam Commercial Bank
Public Co., Ltd.
[Bangsue Branch : Siam
Cement Rd., Bangsue, Bangkok
10800]
Sumitomo Mitsui Banking
Corporation
[Bangkok Office : 138
Silom Rd., Silom,
Bangrak, Bangkok 10500]
EMPLOYMENT
The subject employs
763 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.
Note.
The administrative office
was relocated from
12th Floor to 7th Floor
of Siam Cement
Building II, in 2012.
Factory:
9, I - 7 Map
Ta Phut Industrial
Estate, T, Map Ta
Phut, A. Muang,
Rayong 21150.
Tel: [66] 38
683-723, 38 683-732
Fax: [66] 38
683-200
Warehouse:
321/7 Moo 6, Sriracha,
Chonburi.
Tel. & Fax
: [66] 38
774-454-8
COMMENT
The
subject is the manufacturer of hot
rolled structural steel in
Thailand and also the
company within the Siam Cement
Group. Its business performance
in 2012 had
increased accordingly with
strong consumption.
However, since the
last quarter of 2013 the
construction industry has
been slowing down
accordingly to political
turmoil which affected
on the country’s
consumer confidence.
FINANCIAL
INFORMATION
The capital was
registered at Bht.
1 million, divided
into 10,000 shares
of Bht. 100
each.
The capital were
increased & decreased later
as followings:
Increased were: Bht.
1,200,000,000 on June
15, 1992
Bht. 3,000,000,000 on
November 4, 1993
Bht. 7,000,000,000 on
October 2, 1998
Bht. 7,800,000,000 on
December 21, 1999
Decreased were: Bht. 7,000,000,000
on December 2,
2002
Bht. 6,200,000,000 on
June 11, 2003
Bht. 3,000,000,000 on
December 18, 2003
The
latest registered capital
was decreased to Bht. 3,000,000,000
divided into 30,000,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE : [as at
April 3, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Yamato Kogyo Co., Ltd. Nationality: Japanese Address : 380 Kibi, Ohtsu-ku. Himeji-shi,
671-1192 Japan |
19,255,343 |
64.18 |
|
Mitsui & Co.,
Ltd. Nationality: Japanese Address : 2-1, Ohtemachi 1-chome,Chiyoda-ku, Tokyo, 100-0004,
Japan |
5,400,000 |
18.00 |
|
Siam Cement Public
Co., Ltd. Nationality: Thai Address :
1 Siam Cement
Rd., Bangkok |
3,000,000 |
10.00 |
|
Sumitomo Corporation Nationality: Japanese Address : 1-8-11, Harumi, 1-chome, Chuo-ku, Tokyo,
104-8610, Japan |
1,744,657 |
5.82 |
|
Mitsui & Co.,
[Thailand] Ltd. Nationality: Japanese Address : 175
South Sathorn Rd., Thunmahamek,
Sathorn, Bangkok |
600,000 |
2.00 |
Total Shareholders : 5
Share Structure [as
at April 3,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
3,000,000 |
10.00 |
|
Foreign - Japanese |
4 |
27,000,000 |
90.00 |
|
Total |
5 |
30,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Vichien Kingmontree No.
3977
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
|
210,796,166 |
235,945,590 |
740,579,081 |
|
Trade Accounts & Other
Receivable |
2,384,061,436 |
1,584,355,398 |
837,080,564 |
|
Other Receivable |
- |
- |
19,173,758 |
|
Inventories |
4,241,261,258 |
4,464,656,136 |
3,118,662,395 |
|
Deferred - Value Added
Tax |
31,614,651 |
106,554,124 |
62,206,499 |
|
Other Current Assets |
493,049 |
14,794,664 |
5,018,523 |
|
|
|
|
|
|
Total Current Assets
|
6,868,226,560 |
6,406,305,912 |
4,782,720,820 |
|
Long-term Investment |
- |
- |
15,534,000 |
|
Fixed Assets
|
10,235,576,311 |
10,842,411,311 |
11,329,049,678 |
|
Intangible Assets |
103,501,958 |
105,440,287 |
110,115,569 |
|
Deferred Expenses |
1,193,041,782 |
1,220,797,115 |
1,331,617,371 |
|
Other Non-current Assets |
5,031,567 |
3,166,414 |
3,193,744 |
|
Total Assets |
18,405,378,178 |
18,578,121,039 |
17,572,231,182 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Short-term Loan from Financial Institutions |
- |
380,000,000 |
- |
|
Trade Accounts & Other Payable |
1,663,683,931 |
1,794,126,772 |
971,751,709 |
|
Other Payable |
- |
- |
451,318,456 |
|
Current Portion of
Long-term Loan from Financial Institutions |
740,000,000 |
695,000,000 |
295,000,000 |
|
Current Portion of Long-term Loan from Related Company |
307,775,000 |
318,319,000 |
3,159,000,000 |
|
Other Current Liabilities |
15,887,123 |
19,336,291 |
15,099,655 |
|
|
|
|
|
|
Total Current Liabilities |
2,727,346,054 |
3,206,782,063 |
4,892,169,820 |
|
|
|
|
|
|
Long-term Loan from Financial Institutions |
2,000,000,000 |
2,740,000,000 |
3,435,000,000 |
|
Long-term Loan from Related
Company |
2,132,250,000 |
2,450,569,000 |
- |
|
Estimated Liabilities for Employee Benefits |
50,520,092 |
44,437,108 |
40,373,197 |
|
|
|
|
|
|
Total Liabilities |
6,910,116,146 |
8,441,788,171 |
8,367,543,017 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share Capital :
Baht. 100 par value
authorized issued
and fully paid share capital
30,000,000 shares |
3,000,000,000 |
3,000,000,000 |
3,000,000,000 |
|
|
|
|
|
|
Capital Paid |
3,000,000,000 |
3,000,000,000 |
3,000,000,000 |
|
Retained Earning Appropriated for
Statutory Reserve |
300,000,000 |
300,000,000 |
300,000,000 |
|
Unappropriated |
8,195,262,032 |
6,836,332,868 |
5,904,688,165 |
|
Total Shareholders' Equity |
11,495,262,032 |
10,136,332,868 |
9,204,688,165 |
|
|
|
|
|
|
Total Liabilities & Shareholders' Equity |
18,405,378,178 |
18,578,121,039 |
17,572,231,182 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Sales |
24,931,616,843 |
22,747,454,969 |
16,383,566,238 |
|
Other Revenues |
115,624,351 |
81,276,466 |
142,234,559 |
|
Total Revenues |
25,047,241,194 |
22,828,731,435 |
16,525,800,797 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
21,946,775,990 |
20,184,108,778 |
14,717,558,539 |
|
Selling Expenses |
541,664,180 |
555,344,062 |
382,670,974 |
|
Administrative Expenses |
920,230,990 |
857,170,431 |
740,092,754 |
|
Other Expenses |
18,663,403 |
16,282,860 |
27,522,242 |
|
Total Expenses |
23,427,334,563 |
21,612,906,131 |
15,867,844,509 |
|
|
|
|
|
|
Profit before Financial
Cost |
1,619,906,631 |
1,215,825,304 |
657,956,288 |
|
Financial Cost |
[260,977,467] |
[284,180,601] |
[316,207,886] |
|
Net Profit / [Loss] |
1,358,929,164 |
931,644,703 |
341,748,402 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.52 |
2.00 |
0.98 |
|
QUICK RATIO |
TIMES |
0.95 |
0.57 |
0.33 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.44 |
2.10 |
1.45 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.35 |
1.22 |
0.93 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
70.54 |
80.74 |
77.34 |
|
INVENTORY TURNOVER |
TIMES |
5.17 |
4.52 |
4.72 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
34.90 |
25.42 |
18.65 |
|
RECEIVABLES TURNOVER |
TIMES |
10.46 |
14.36 |
19.57 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
27.67 |
32.44 |
24.10 |
|
CASH CONVERSION CYCLE |
DAYS |
77.77 |
73.71 |
71.89 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
88.03 |
88.73 |
89.83 |
|
SELLING & ADMINISTRATION |
% |
5.86 |
6.21 |
6.85 |
|
INTEREST |
% |
1.05 |
1.25 |
1.93 |
|
GROSS PROFIT MARGIN |
% |
12.44 |
11.63 |
11.04 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
6.50 |
5.34 |
4.02 |
|
NET PROFIT MARGIN |
% |
5.45 |
4.10 |
2.09 |
|
RETURN ON EQUITY |
% |
11.82 |
9.19 |
3.71 |
|
RETURN ON ASSET |
% |
7.38 |
5.01 |
1.94 |
|
EARNING PER SHARE |
BAHT |
45.30 |
31.05 |
11.39 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.38 |
0.45 |
0.48 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.60 |
0.83 |
0.91 |
|
TIME INTEREST EARNED |
TIMES |
6.21 |
4.28 |
2.08 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
9.60 |
38.84 |
|
|
OPERATING PROFIT |
% |
33.24 |
84.79 |
|
|
NET PROFIT |
% |
45.86 |
172.61 |
|
|
FIXED ASSETS |
% |
(5.60) |
(4.30) |
|
|
TOTAL ASSETS |
% |
(0.93) |
5.72 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 9.6%. Turnover has increased from THB 22,747,454,969.00
in 2011 to THB 24,931,616,843.00 in 2012. While net profit has increased from
THB 931,644,703.00 in 2011 to THB 1,358,929,164.00 in 2012. And total assets
has decreased from THB 18,578,121,039.00 in 2011 to THB 18,405,378,178.00 in
2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
12.44 |
Impressive |
Industrial
Average |
1.58 |
|
Net Profit Margin |
5.45 |
Impressive |
Industrial
Average |
0.36 |
|
Return on Assets |
7.38 |
Impressive |
Industrial
Average |
0.83 |
|
Return on Equity |
11.82 |
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 12.44%. 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 5.45%,
higher figure when compared with those of its average competitors in the same
industry, indicated that business was an efficient operator in a dominant position within its industry.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. Return on Assets ratio is
7.38%, 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 11.82%, 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 |
2.52 |
Impressive |
Industrial
Average |
1.31 |
|
Quick Ratio |
0.95 |
|
|
|
|
Cash Conversion Cycle |
77.77 |
|
|
|
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 2.52 times in 2012, increased from 2
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 0.95 times in 2012,
increased from 0.57 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 78 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.38 |
Impressive |
Industrial
Average |
0.59 |
|
Debt to Equity Ratio |
0.60 |
Impressive |
Industrial
Average |
1.42 |
|
Times Interest Earned |
6.21 |
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 6.21 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 0.38 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 |
2.44 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.35 |
Acceptable |
Industrial
Average |
2.26 |
|
Inventory Conversion Period |
70.54 |
|
|
|
|
Inventory Turnover |
5.17 |
Impressive |
Industrial
Average |
5.11 |
|
Receivables Conversion Period |
34.90 |
|
|
|
|
Receivables Turnover |
10.46 |
Impressive |
Industrial
Average |
3.82 |
|
Payables Conversion Period |
27.67 |
|
|
|
The company's Account Receivable Ratio is calculated as 10.46 and 14.36
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 81 days at the
end of 2011 to 71 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 4.52 times in year 2011 to 5.17 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.35 times and 1.22
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.60.38 |
|
|
1 |
Rs.101.63 |
|
Euro |
1 |
Rs.83.57 |
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.