MIRA
INFORM REPORT
|
Report Date : |
19.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
THAI UNION
MANUFACTURING COMPANY LIMITED |
|
|
|
|
Registered Office : |
M
floor, S.M. Tower,
979/13-16 phaholyothin road,
samsennai, phyathai,
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
23.08.1973 |
|
|
|
|
Com. Reg. No.: |
0105516008980 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged
in manufacturing and
servicing of canned
tuna comprising Tuna Steak
in Vegetable Oil,
Tuna Steak in Brine, Tuna
Steak in Spring Water,
Tuna Steak in Sunflower Oil with
CLA, Tuna Steak in
Vegetable Oil with Broth,
Tuna Steak Sandwich in
Vegetable Oil, Tuna
Sandwich in Brine
and Tuna Sandwich
in Spring Water
|
|
|
|
|
No of Employees : |
8,000 |
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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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 in 2013 implemented a nation-wide 300 baht ($10) per day minimum wage policy and deployed 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. This was expected to lead to an economic upsurge but growth has remained slow, in part due to ongoing political unrest and resulting uncertainties. Spending on infrastructure will require re-approval once a new government is seated.
|
Source
: CIA |
COMPANY NAME
THAI
UNION MANUFACTURING COMPANY
LIMITED
SUMMARY
BUSINESS
ADDRESS : M
FLOOR, S.M. TOWER,
979/13-16 PHAHOLYOTHIN
ROAD,
SAMSENNAI, PHYATHAI,
BANGKOK 10400,
THAILAND
TELEPHONE : [66] 2298-0025,
2298-0421-32
FAX :
[66] 2298-0027-8
E-MAIL
ADDRESS : akkadet_ch@thaiunion.co.th
tum@thaiunion.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1973
REGISTRATION
NO. : 0105516008980
TAX
ID NO. : 3101020694
CAPITAL REGISTERED : BHT. 300,000,000
CAPITAL PAID-UP : BHT.
300,000,000
SHAREHOLDER’S PROPORTION : THAI :
99.93%
FOREIGN :
0.07%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. KRAISORN CHANSIRI,
THAI
PRESIDENT
NO.
OF STAFF : 8,000
LINES
OF BUSINESS : CANNED TUNA AND PET
FOOD PRODUCTS
MANUFACTURER, EXPORTER
AND 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 August 23,
1973 as a
private limited company under
the registered name THAI
UNION MANUFACTURING COMPANY
LIMITED by Thai groups, with the business objective to manufacture
and distribute wide
range of canned tuna
and pet food
products to both
domestic and international
markets. It currently
employs approximately 8,000
staff.
The
subject is one of Thai Union Group of companies, led by Thai
Union Frozen Products
Public Company Limited, which
is the parent
company of the group.
It is also
the world’s largest canned tuna company.
The subject’s registered
address is M Flr., S.M.
Tower, 979/13-16 Phaholyothin
Rd., Samsennai, Phyathai,
Bangkok 10400, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Chan Hon Kit |
|
Chinese |
74 |
|
Mr. Kraisorn Chansiri |
|
Thai |
79 |
|
Mr. Nakorn Niruttinanon |
|
Thai |
43 |
|
Mr. Chuan Tungchansiri |
|
Thai |
69 |
|
Mr. Manas Tungchansiri |
|
Thai |
72 |
|
Mr. Cheng Niruttinanon |
|
Thai |
72 |
|
Mr. Chan Tin Su |
|
Chinese |
41 |
|
Mr. Theerapong Chansiri |
|
Thai |
48 |
|
Mr. Tawee Tungchansiri |
|
Thai |
39 |
|
Mr. Narin Niruttinanon |
|
Thai |
38 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Kraisorn Chansiri is
the President.
He is Thai
nationality with the
age of 79 years
old.
Mr. Chuan Tungchansiri is
the Vice President
& Financial Manager.
He is Thai
nationality with the
age of 69
years old.
Mr. Cheng Niruttinanon is
the Managing Director.
He is Thai
nationality with the
age of 72
years old.
Mr. Pichitchai Wangpiya is
the General Manager.
He is Thai
nationality.
Mr. Pornchai Tangtiyathaveesuk is
the Sales & Marketing Manager.
He is Thai
nationality.
Mr. Somsak Smithiseth is
the Factory Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject
is engaged in manufacturing
and servicing of
canned tuna comprising Tuna Steak
in Vegetable Oil,
Tuna Steak in Brine, Tuna
Steak in Spring Water,
Tuna Steak in Sunflower Oil with
CLA, Tuna Steak in
Vegetable Oil with Broth,
Tuna Steak Sandwich
in Vegetable Oil,
Tuna Sandwich in
Brine and Tuna
Sandwich in Spring
Water under its
owned brand “SEALECT”,
and customer’s brands,
as well as
canned pet foods,
mainly for cat,
under its brands
“FRISKIES” and “PUMKY”.
PRODUCTION CAPACITY
Approximately 600 metric
tons/day
PURCHASE
80% of raw materials,
mainly tuna, as
well as food
ingredient are imported
from Indonesia, Taiwan, Korea, Myanmar, Japan, Malaysia, India
and France, the
remaining 20% is
purchased from local
suppliers.
MAJOR SUPPLIERS
Thai Union Frozen
Products Public Company
Limited : Thailand
Asian Pacific Can
Co., Ltd. : Thailand
Thai Union Graphic
Co., Ltd. : Thailand
SALES
98% of the
products is exported
to Japan, Hong Kong, Singapore,
U.S.A., France, India, Italy,
Canada, Spain, Belgium, New Zealand,
Brazil, Argentina, Switzerland,
Australia and many
countries in Middle
East and Africa, and the remaining
2% is sold
locally by wholesale
through T. Holding Co.,
Ltd., the subject’s
affiliated company.
PARENT COMPANY
Thai
Union Frozen Products
Public Company Limited
Business Type : Manufacturer of
frozen foods.
Address : 72/1
Moo 7, Sethakij
1 Rd., T. Thasai, A.
Muang, Samutsakorn 74000.
SUBSIDIARY AND
AFFILIATED COMPANIES
The subject is a member of
The Thai Union Group, which has over 30
affiliated companies, as
the followings:
Thai Union Seafood
Co., Ltd.
Business
Type : Manufacturer
and exporter of
frozen shrimps
T-Holding
Co., Ltd.
Business
Type : Distributor
of food products
Lucky Union Foods
Co., Ltd.
Business
Type : Manufacturer
and exporter of
imitation crab stick
Thai Union Graphic
Co., Ltd.
Business
Type : Printing
service provider
Songkla Canning Co.,
Ltd.
Business
Type : Manufacturer
and exporter of
canned seafood products
Thai Quality Shrimp
Co., Ltd.
Business
Type : Manufacturer
and exporter of
shrimps, as well
as research and
developer of
shrimp breeds
Thai Union Feedmill
Co., Ltd.
Business
Type : Manufacturer
and exporter of
animal feed
Thai Union Hatchery
Co., Ltd.
Business
Type : Development
of white shrimp
breeds
Thai Union International
Co., Ltd.
Business
Type : An
holding and investment
company in U.S.A.
Tri-Union
Seafoods LLC.
Business
Type : Manufacturer
and distributor of
canned seafood
etc.
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 on the
credits term of
30-60 days or
T/T.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
Kasikornbank
Public Co., Ltd.
The
Siam Commercial Bank
Public Co., Ltd.
Krung
Thai Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately
8,000 staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial
area.
Factory/Cold
Storage:
-
94/6
Moo 7, Sethakij 1
Rd., T. Thasai, A. Muang,
Samutsakorn 74000
Tel.: [66]
34 816-441-56, Fax: [66]
34 816-457 [19,200
square meters of
land area]
- 30/2 Moo
8, Sethakij 1
Rd., T. Thasai, A. Muang,
Samutsakorn 74000
Tel.:
[66] 34
412-210, Fax: [66] 34
425-459
-
30/24
Moo 8, Sethakij
1 Rd., T. Thasai,
A. Muang, Samutsakorn 74000
-
9/28
Moo 3 Sethakij
1 Rd., T. Bangkrachao, A. Muang,
Samutsakorn 74000
Branch
office:
-
17th
Floor., S.M. Tower, 979/32, 979/35-36 Phaholyothin Rd., Samsennai,
Phyathai,
Bangkok 10400
COMMENT
The company has strong international competitiveness.
Standard quality products at
competitive price as
well as experienced
and capable marketing personnel
with regular customers
visits play roles in
acquiring such a
strong competitiveness in
global market.
Food exports from the company enjoyed good global reputation and
recognition. Moreover, free trade agreements (FTAs) between Thailand and other
countries has a strong
benefit and allow to steady
expansion.
2014 remained a challenging year for
its business in Thailand while competition around the world was also
intensifying, requiring it to monitoring
the situation closely in order to stay competitive in the global marketplace.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 10,000,000 divided into 100,000
shares of Bht.
100 each with
fully paid.
The
capital was increased
later as follows:
Bht. 120,000,000
on March 24,
1988
Bht. 180,000,000
on April 12,
1989
Bht. 240,000,000
on February 27,
1990
Bht. 300,000,000
on March 26,
1991
On
May 24, 1999,
the capital was
divided into 30,000,000
shares of Bht. 10
each with fully
paid.
MAIN SHAREHOLDERS
LISTED
[as
at March 28,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Thai Union Frozen Products
Public Company Limited Nationality: Thai Address : 72/1
Moo 7, Sethakij
1 Rd., T. Thasai,
A.
Muang, Samutsakorn |
27,025,360 |
90.08 |
|
Mrs. Busakorn Chansiri Nationality: Thai Address : 2999
Rimtangrodfai Saipaknam Rd.,
Prakanong, Klongtoey, Bangkok |
1,002,000 |
3.34 |
|
Mr. Somkiat Satayaphan Nationality: Thai Address : 286/9
Surawong Rd., Siphya,
Bangrak, Bangkok |
326,000 |
1.09 |
|
Mrs. Charoonluck Panitchewa Nationality: Thai Address : 87/3
Sukhumvit 54 Rd.,
Bangchak,
Prakanong, Bangkok |
315,000 |
1.05 |
|
Mr. Cheng Niruttinanon Nationality: Thai Address : 161/532
Charansanitwong Road,
Bangkhunsri, Bangkoknoi, Bangkok |
211,750 |
0.71 |
|
Mr. Pitoon Anavil Nationality: Thai Address : 245
Soi 11, Rama
3 Road, Bangkorlaem, Bangkok |
203,750 |
0.68 |
|
Others |
916,140 |
3.05 |
Total Shareholders : 40
Share Structure [as
at March 28,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
36 |
29,980,000 |
99.93 |
|
Foreign - Chinese |
4 |
20,000 |
0.07 |
|
Total |
40 |
30,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO
Mr. Sophon Permsiriwallop No.
3182
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 [Adjusted] |
|
|
|
|
|
|
Cash and Cash Equivalent |
20,330,878 |
44,144,433 |
30,071,592 |
|
Trade Accounts & Other
Receivable |
3,572,284,340 |
2,709,066,633 |
2,792,512,636 |
|
Current Portion of
Long-term Loan |
3,100,008 |
3,933,341 |
2,783,340 |
|
Inventories |
5,463,416,228 |
5,331,930,981 |
3,614,077,991 |
|
Refundable Value Added Tax |
64,412,305 |
61,145,037 |
59,156,080 |
|
Account Receivable under
Forward Contract |
250,666 |
74,580,391 |
1,073,152 |
|
Other Current Assets |
86,951,861 |
93,083,755 |
68,315,833 |
|
|
|
|
|
|
Total Current Assets
|
9,210,746,286 |
8,317,884,571 |
6,567,990,624 |
|
Investment in Subsidiaries |
57,499,900 |
- |
- |
|
Investment in Associated |
225,781,321 |
175,575,159 |
166,557,933 |
|
Other Long-term Investment |
33,115,541 |
31,573,593 |
33,576,725 |
|
Long-term Loan, Net of Current
Portion |
1,055,712,854 |
997,423,571 |
1,035,015,372 |
|
Fixed Assets |
3,332,978,327 |
2,258,298,768 |
1,910,582,738 |
|
Intangible Assets |
23,166,655 |
12,235,907 |
10,237,074 |
|
Deferred Income Tax |
78,501,357 |
161,316,538 |
222,235,933 |
|
Other Assets |
14,458,943 |
8,738,627 |
8,258,684 |
|
Total Assets |
14,031,961,184 |
11,963,046,734 |
9,954,455,083 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 [Adjusted] |
|
|
|
|
|
|
Bank Overdraft & Short-term
Loan from Financial Institutions |
4,489,845,651 |
2,909,856,175 |
1,498,751,577 |
|
Trade Accounts & Other Payable |
1,573,162,987 |
1,348,824,460 |
1,074,725,372 |
|
Current Portion of Long-term Loan from Financial
Institutions |
272,500,000 |
272,500,000 |
272,500,000 |
|
Current Portion of Financial Liabilities |
18,232,321 |
4,603,746 |
- |
|
Other Current Liabilities |
344,654,230 |
252,848,259 |
233,109,635 |
|
|
|
|
|
|
Total Current Liabilities |
6,698,395,189 |
4,788,632,640 |
3,079,086,584 |
|
|
|
|
|
|
Long-term Loan from Financial Institutions, Net of
Current Portion |
- |
272,500,000 |
545,000,000 |
|
Long-term Loans |
9,891,255 |
8,880,897 |
8,759,603 |
|
Financial Liabilities, Net of Current Portion |
3,174,657 |
7,783,321 |
- |
|
Provision for Employee Benefits |
480,627,725 |
448,025,116 |
261,017,793 |
|
Deferred Income Tax Liabilities
|
- |
- |
438,855 |
|
Other Non-current Liabilities |
127,666,314 |
72,163,713 |
48,499,576 |
|
Total Liabilities |
7,319,755,140 |
5,597,985,687 |
3,942,802,411 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 30,000,000 shares |
300,000,000 |
300,000,000 |
300,000,000 |
|
|
|
|
|
|
Capital Paid |
300,000,000 |
300,000,000 |
300,000,000 |
|
Retained Earnings Appropriated for
Statutory Reserve |
30,000,000 |
30,000,000 |
30,000,000 |
|
Unappropriated |
6,388,884,027 |
6,046,605,672 |
5,698,621,677 |
|
Unrealized Loss from Changes
in Value of Investment -Net from Income Tax |
[6,677,983] |
[11,544,625] |
[16,969,005] |
|
Total Shareholders' Equity |
6,712,206,044 |
6,365,061,047 |
6,011,652,672 |
|
Total Liabilities &
Shareholders' Equity |
14,031,961,184 |
11,963,046,734 |
9,954,455,083 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 [Adjusted] |
|
|
|
|
|
|
Sales Income |
21,189,405,785 |
21,393,647,704 |
18,518,979,737 |
|
Interest Income |
67,905,405 |
57,686,528 |
99,716,528 |
|
Gain on Exchange
Rate |
22,277,120 |
147,753,569 |
104,377,666 |
|
Reversal of Doubtful to
Subsidiary |
- |
- |
1,020,000,000 |
|
Other Income |
262,267,105 |
269,311,640 |
270,491,384 |
|
Total Revenues |
21,541,855,415 |
21,868,399,441 |
20,013,565,315 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
19,478,390,266 |
19,100,428,763 |
15,991,955,961 |
|
Selling Expenses |
549,354,174 |
548,697,991 |
572,491,995 |
|
Administrative Expenses |
505,522,316 |
772,405,842 |
443,571,825 |
|
Other Expenses - Loss on
liquidation of subsidiary |
- |
- |
1,034,734,799 |
|
Total Expenses |
20,533,266,756 |
20,421,532,596 |
18,042,754,580 |
|
|
|
|
|
|
Profit before Financial Cost & Income Tax |
1,008,588,659 |
1,446,866,845 |
1,970,810,735 |
|
Financial Cost |
[125,688,728] |
[96,440,541] |
[110,921,964] |
|
Profit before Income Tax |
882,899,931 |
1,350,426,304 |
1,859,888,771 |
|
Income / [Income Tax] |
[90,621,576] |
[72,442,309] |
[150,507,381] |
|
|
|
|
|
|
Net Profit / [Loss] |
792,278,355 |
1,277,983,995 |
1,709,381,390 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.38 |
1.74 |
2.13 |
|
QUICK RATIO |
TIMES |
0.54 |
0.58 |
0.92 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
6.36 |
9.47 |
9.69 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.51 |
1.79 |
1.86 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
102.38 |
101.89 |
82.49 |
|
INVENTORY TURNOVER |
TIMES |
3.57 |
3.58 |
4.42 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
61.53 |
46.22 |
55.04 |
|
RECEIVABLES TURNOVER |
TIMES |
5.93 |
7.90 |
6.63 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
29.48 |
25.78 |
24.53 |
|
CASH CONVERSION CYCLE |
DAYS |
134.43 |
122.34 |
113.00 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.93 |
89.28 |
86.35 |
|
SELLING & ADMINISTRATION |
% |
4.98 |
6.18 |
5.49 |
|
INTEREST |
% |
0.59 |
0.45 |
0.60 |
|
GROSS PROFIT MARGIN |
% |
9.74 |
12.94 |
21.72 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.76 |
6.76 |
10.64 |
|
NET PROFIT MARGIN |
% |
3.74 |
5.97 |
9.23 |
|
RETURN ON EQUITY |
% |
11.80 |
20.08 |
28.43 |
|
RETURN ON ASSET |
% |
5.65 |
10.68 |
17.17 |
|
EARNING PER SHARE |
BAHT |
26.41 |
42.60 |
56.98 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.52 |
0.47 |
0.40 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.09 |
0.88 |
0.66 |
|
TIME INTEREST EARNED |
TIMES |
8.02 |
15.00 |
17.77 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(0.95) |
15.52 |
|
|
OPERATING PROFIT |
% |
(30.29) |
(26.59) |
|
|
NET PROFIT |
% |
(38.01) |
(25.24) |
|
|
FIXED ASSETS |
% |
47.59 |
18.20 |
|
|
TOTAL ASSETS |
% |
17.29 |
20.18 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -0.95%. Turnover has decreased from THB
21,393,647,704.00 in 2012 to THB 21,189,405,785.00 in 2013. While net profit has
decreased from THB 1,277,983,995.00 in 2012 to THB 792,278,355.00 in 2013. And
total assets has increased from THB 11,963,046,734.00 in 2012 to THB
14,031,961,184.00 in 2013.
PROFITABILITY :
SATISFACTORY
PROFITABILITY RATIO
|
Gross Profit Margin |
9.74 |
Impressive |
Industrial Average |
- |
|
Net Profit Margin |
3.74 |
Impressive |
Industrial Average |
3.55 |
|
Return on Assets |
5.65 |
Acceptable |
Industrial Average |
8.31 |
|
Return on Equity |
11.80 |
Acceptable |
Industrial Average |
16.14 |
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 9.74%. 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 3.74%,
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 5.65%.
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 11.8%.
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 |
1.38 |
Satisfactory |
Industrial Average |
1.58 |
|
Quick Ratio |
0.54 |
|
|
|
|
Cash Conversion Cycle |
134.43 |
|
|
|
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 1.38 times in 2013, decreased from 1.74 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 0.54 times in 2013,
decreased from 0.58 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 135 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.52 |
Acceptable |
Industrial Average |
0.48 |
|
Debt to Equity Ratio |
1.09 |
Risky |
Industrial Average |
0.92 |
|
Times Interest Earned |
8.02 |
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 8.03 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 0.52 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
6.36 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.51 |
Acceptable |
Industrial Average |
2.34 |
|
Inventory Conversion Period |
102.38 |
|
|
|
|
Inventory Turnover |
3.57 |
Acceptable |
Industrial Average |
5.94 |
|
Receivables Conversion Period |
61.53 |
|
|
|
|
Receivables Turnover |
5.93 |
Satisfactory |
Industrial Average |
6.12 |
|
Payables Conversion Period |
29.48 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.93 and 7.90 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 is
102 days at the end of 2012,
same number of days
as in 2013. This represents a negative trend. And
Inventory turnover has decreased from 3.58 times in year 2012 to 3.57 times in
year 2013.
The company's Total Asset Turnover is calculated as 1.51 times and 1.79
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.61.06 |
|
UK Pound |
1 |
Rs.101.84 |
|
Euro |
1 |
Rs.81.56 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.