MIRA
INFORM REPORT
|
Report Date : |
29.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
LPN PLATE MILL PUBLIC COMPANY
LIMITED |
|
|
|
|
Registered Office : |
199/9 Moo 4, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
06.08.1990 |
|
|
|
|
Com. Reg. No.: |
0107539000014 [Former :
BOR. MOR. JOR. 502] |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor &
Exporter of Hot Rolled Coils
And Hot Rolled
Plate |
|
|
|
|
No. of Employees |
460 |
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 : |
Exist |
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 1, 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
LPN PLATE MILL PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 199/9
MOO 4, SUKSAWAD
ROAD,
T.
PAKKLONGBANGPLAKOT, A. PHRASAMUTJAEDI,
SAMUTPRAKARN 10290, THAILAND
TELEPHONE : [66]
2815-6400-9
FAX : [66]
2815-6427-9
E-MAIL ADDRESS : info@lpnpm.co.th
REGISTRATION ADDRESS : 14th FLOOR,
LPN BUILDING 1,
333 VIBHAVADEE-RANGSIT ROAD,
JOMPHOL,
JATUJAK, BANGKOK
10900, THAILAND
ESTABLISHED : 1990
REGISTRATION NO. : 0107539000014 [Former
: BOR. MOR. JOR. 502]
TAX ID NO. : 3101865486
CAPITAL REGISTERED : BHT.
2,523,192,890
CAPITAL PAID-UP BHT. 2,523,192,890
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS PUBLIC LIMITED
COMPANY
EXECUTIVE : DR.
PIPAT PRIDAVIPHAT, THAI
PRESIDENT AND
CHIEF EXECUTIVE OFFICER
NO. OF STAFF : 460
LINES OF BUSINESS : HOT
ROLLED COILS AND
HOT ROLLED PLATE
MANUFACTURER, DISTRIBUTOR
& EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was
established on August
6, 1990 as
a private limited
company under the
name style “LPN
Plate Mill Co.,
Ltd.”, by Thai
groups, in order
to manufacture hot-rolled
coils and hot
rolled plates with
BOI support for
local market. On
January 3, 1996,
the subject’s status
was changed to
a public limited
company under the
name LPN PLATE MILL
PUBLIC COMPANY LIMITED.
It currently employs
approximately 460 staff.
Subject achieved the
standard ISO 9002 certificate
in 1998, ISO 14001
and ISO 18001 certificates
in 2004.
LPN Plate Mill
Public Co., Ltd.
is one of
LPN Group of
Companies which was
initially founded by Mr.
Banjerd Pridaviphat, and
his brother, Dr.
Pipat Pridaviphat. They
have participated in the steel
industry for over
26 years, beginning
as a steel
trader “Lao Peng
Nguan Shop”, then
in 1979 establishing
a registered company
named “Thai Central
Steel Co., Ltd.”
to import and
distribute steel and
various steel products.
Industrial Standards
ASTM (American Society for
Testing and Materials)
JIS (Japanese Industrial Standards
Committee)
EN (Euronorm Standard)
ISO (International
Organization for Standardization)
AS (Australian Standard)
ABS (American Bureau of Shipping)
Lloyd’s (Lloyd’s Register)
The subject’s registered
address is 14th Floor,
LPN Building 1, 333 Vibhavadee-Rangsit Road,
Jomphol, Jatujak, Bangkok
10900, while the
company’s current operation
address is 199/9
Moo 4, Suksawad
Road, T. Pakklongbangplakot, A. Phrasamutjaedi, Samutprakarn
10290.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Suneth Vuthisak |
|
Thai |
50 |
|
Mr. Naruemit Pridaviphat |
[x] |
Thai |
39 |
|
Mr. Thitikorn Subboonrod |
[-] |
Thai |
47 |
|
Gen. Chettha Tanajaro |
|
Thai |
76 |
|
Mr. Pripach Limprapruekkul |
|
Thai |
60 |
|
Mr. Chatchawal Pridaviphat |
[x] |
Thai |
37 |
|
Mr. Roy Chowdhury Subhajit |
|
Indian |
49 |
|
Mr. Surasak Jaruwansathit |
|
Thai |
62 |
|
Mr. Sanpong Pridaviphat |
[-] |
Thai |
33 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can jointly sign
with anyone of
the mentioned directors
[-] on behalf
of the subject
with company’s affixed.
MANAGEMENT
Dr. Pipat Pridaviphat
is the President
& Chief Executive
Officer.
He is Thai
nationality with the
age of 62
years old.
Mr. Naruemit Preedaviphat is
the Vice President.
He is Thai
nationality with the
age of 39
years old.
Mr. Suneth Vuthisak
is the Managing
Director.
He is Thai
nationality with the
age of 50
years old.
Mr. Thitikorn Subboonrod
is the General
Manager & Operation
Manager.
He is Thai
nationality with the
age of 47
years old.
Mr. Pongsak Soonthornvanich is
the Factory Manager.
He is Thai
nationality.
Ms. Kayasith Vijittranon
is the Marketing
& Sales Director.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
of hot rolled
coils with 4 - 8
ft. in width
and 3 - 25 mm. of
thickness and hot
rolled steel plates
with the widest
width in Asia.
The widths available
are from 3 - 10 ft.
and thicknesses from 6
- 150 mm. The
products are supplied
to construction, pipe,
automobile, ship building
and other downstream industries.
The High Quality Products
for a Varied
Demand:
High-Strength Low-Alloy Nb-V
Steel of Structural
Quality
Specialty steel to
support structures that
require high strength
such as building
structure and bridge structures.
Structural Steel Plate For Use in Ship Construction (Ordinary Strength)
Structural steel plates
especially for ocean
vessel construction and
other offshore works.
Carbon Steel for Pressure Vessel Quality, for moderate and low
temperature service Steel that
can sustain high
pressure both at
moderate and low
temperatures, suitable for
making pressure vessels.
Hot rolled coils
with smooth plain
surface throughout the
length
PRODUCTION CAPACITY
400,000 tons per annum
BRAND NAME
“LPN”
IMPORT [COUNTRIES]
Some of raw
materials and steel
bars are imported
from Germany, Singapore,
India, Hong Kong,
Brazil, Australia, Mexico
and Ukraine, whereas
the majority of
materials is purchased
from local suppliers.
SALES [LOCAL]
95% of its
products is sold
locally to manufacturers, wholesalers
and end-users.
EXPORT [COUNTRIES]
5% of its products is
exported to Malaysia,
Australia, Bangladesh, Vietnam,
India, United Arab
Emirates, Republic of China,
Hong Kong, Laos,
Brunei and Indonesia.
SUBSIDIARIES & AFFILIATED
COMPANIES
LPN Development Public
Co., Ltd.
Business Type : Land
development & property
business
Lao Peng Nguan
Corporation Ltd.
Business Type : Distributor
of steel products
Thanapat Property Development
Public Company Limited
Business Type : Property
business
LITIGATIONS
Bankruptcy and Receivership
On August 19,
2002, the Central
Bankruptcy Court has ordered LPN
Plate Mill Public
Co., Ltd. [Debtor]
to enter into business
rehabilitation according to
the lawsuit red
case no. 1321/2545.
On August 6,
2003, the Court
approved the business
rehabilitation plan and
appointed LPN Planner Co., Ltd.
to be the
Plan Administrator. As a
result of such Court
order, the power
and duties of
the Planner shall
be vested in the
Plan Administrator according
to Article 90/59
of Bankruptcy Act
B.E. 2483.
On September 29,
2008, the court
has approved the
plan correction according
to Article 90/63
of Bankruptcy Act B.E. 2483.
Others
The subject has
several litigations in
relation to its normal
course of business
operation, but the
management believes that
it would not have significant
affect on the company’s business.
As of December
31, 2012, the company had been filed by the creditors of the
various entities. The details were as the followings:
As at July 4, 2012, the Company was filed in the District
Court for non-payment
bills which payable by cheque at the amount 9.77 million baht. However, the Company recorded a provision of such in its financial statements. The
case is currently in the process of judicial proceedings.
As at September 24, 2012
and November 23, 2012 the Company was filed in the
District Court and the
Civil Court for
non-payment bills which payable by cheque at the amount 8.16 million baht. However, the Company recorded a provision of such in its financial statements. The case is currently
in the process of judicial proceedings.
As at September 24, 2012
and November 23, 2012 the Company was filed in the
District Court and the
Civil Court for
non-payment bills which payable by cheque at the amount 7.31 million baht. However, the Company recorded a provision of such in
its financial statements. The case is currently
in the process of judicial proceedings.
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 on the
credit term of
120 days &
T/T.
Exports are against
L/C at sight or
on the credit
term of 120
days & T/T.
BANKING
The Siam Commercial
Bank Public Co.,
Ltd.
[Head Office
: 9 Ratchadapisek
Rd., Ladyao, Jatujak,
Bangkok 10900]
Krung Thai Bank Public
Co., Ltd.
[Head Office
: 35 Sukhumvit
Rd., Klongtoeynua, Watana,
Bangkok 10110]
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject employs
approximately 460 staff.
LOCATION DETAILS
The premise is
owned for operating
its headquarters and
factory on the
area of 176,000
square meters at
the heading address.
Premise is located
in provincial, on
the outskirts of
Bangkok.
Its registered address
was relocated from
29th Floor to 14th Floor,
LPN Building 1, 333
Vibhavadee-Rangsit Rd., Jomphol,
Jatujak, Bangkok, in
2014.
COMMENT
The company is the
leading steel manufacture
in the region
especially hot rolled
steel plate and
hot rolled coils
products.
The
company focuses on
the development of specialty
steel products that can perfectly
fulfill varied demands in
each area of
industry such as construction industry, ship building industry, fabrication
industry and etc.
These products are
manufactured under rigorous
quality control of its laboratory which
has been approved to
the satisfaction of
various international standards
such as ASTM, JIS, BSEN, DIN,
ISO, AS, API,
ABS and Lloyd's.
The subject’s operating
performance in 2013
has seen an
improvement with an
increase in both
sales revenue and
net profit comparing
to the previous
year’s level. It
expects a good
business this year
as well.
FINANCIAL INFORMATION
The capital was
registered at Bht. 1,000,000 divided
into 10,000 shares of
Bht. 100 each.
The capital was
increased / decreased later as
followings:
Bht. 800 million
in March 22,
1991
Bht. 1,260 million
in October 25,
1995
Bht. 3,420 million
in January, 1996
Bht. 3,714 million
in 1996
Bht. 5,005 million
in 1997
Bht. 3,367,220,000 in 2008
[decreased]
On April 22, 2010, the capital
was decreased to Bht.
2,523,192,890 divided into
252,319,289 shares of Bht.
10 each with
fully paid.
MAIN SHAREHOLDERS
: [as at
April 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
LPN Planner Co.,
Ltd. Nationality: Thai Address : 62/19
Soi Pramote, Suriwong
Rd., Suriyawongse, Bangrak,
Bangkok |
252,319,014 |
100.00 |
|
Others |
275 |
- |
Total Shareholders : 32
Share Structure
[as at April
30, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
31 |
252,319,288 |
100.00 |
|
Foreign - Singaporean |
1 |
1 |
- |
|
Total |
32 |
252,319,289 |
100.00 |
NAME OF AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Ms. Wimolsri Jongudomsombat No.
3899
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
32,013,667 |
82,938,587 |
5,392,412 |
|
Trade Accounts &
Notes Receivable - Related
Company |
2,360,153 |
792,840 |
597,124 |
|
- Other
Company |
85,264,636 |
53,241,527 |
76,990,109 |
|
Inventories |
515,737,974 |
167,880,525 |
302,198,267 |
|
Advance Payment for
Goods & Deferred Interest |
- |
- |
32,224,036 |
|
Other Current Assets
|
36,266,827 |
5,950,645 |
28,980,833 |
|
|
|
|
|
|
Total Current Assets
|
671,643,257 |
310,804,124 |
446,382,781 |
|
Cash at Bank
pledged as a
Collateral |
9,954,084 |
7,331,677 |
34,354,454 |
|
Investment in Securities
available for Sale |
9,973,500 |
14,944,500 |
10,591,500 |
|
Fixed Assets |
2,917,845,208 |
3,092,967,450 |
3,276,428,625 |
|
Non-operating Land |
265,929,942 |
265,929,942 |
265,929,942 |
|
Other Non-Current Assets |
6,278,103 |
8,204,468 |
19,823,791 |
|
Total Assets |
3,881,624,094 |
3,700,182,161 |
4,053,511,093 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Overdue Debts Paid |
- |
169,524,879 |
189,537,499 |
|
Trade Accounts &
Notes Payable - Related
Companies |
80,245,960 |
78,854,596 |
18,470,438 |
|
- Other
Companies |
936,488,542 |
659,032,751 |
704,477,593 |
|
Liabilities under Debt Restructuring Plan |
1,688,171,711 |
3,829,216,409 |
3,613,277,401 |
|
Current Portion of Long-term
Liabilities under Debt
Restructuring |
7,500,000 |
- |
- |
|
Loan from Related Person |
42,763,000 |
44,123,000 |
57,770,000 |
|
Loan from Other Company |
20,600,000 |
28,350,000 |
- |
|
Accrued Expenses |
32,428,370 |
28,110,962 |
28,958,792 |
|
Advance Income &
Deposit from Goods |
196,579,036 |
52,021,265 |
48,876,672 |
|
Other Current Liabilities |
7,687,404 |
68,131,083 |
9,010,260 |
|
|
|
|
|
|
Total Current Liabilities |
3,012,464,023 |
4,957,364,945 |
4,670,378,655 |
|
|
|
|
|
|
Long-term Liabilities under
Debt Restructuring, net |
213,494,407 |
- |
- |
|
Employee Benefits Liabilities |
19,129,471 |
16,504,302 |
19,821,607 |
|
Income Tax Liabilities |
253,129,096 |
263,813,039 |
|
|
Other Non-current Liabilities |
141,543,633 |
16,999,183 |
2,944,175 |
|
Total Liabilities |
3,639,760,630 |
5,254,681,469 |
4,693,144,437 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
per par value Authorized, issued
and fully paid share
capital 252,319,289 shares
|
2,523,192,890 |
2,523,192,890 |
2,523,192,890 |
|
|
|
|
|
|
Capital Paid |
2,523,192,890 |
2,523,192,890 |
2,523,192,890 |
|
Discount Value |
[2,519,725,679] |
[2,519,725,679] |
[2,519,725,679] |
|
Retained Earning Appropriated for Statutory Reserve |
3,875,543 |
3,875,543 |
3,875,543 |
|
Unappropriated |
[640,795,527] |
[2,502,870,525] |
[1,910,057,102] |
|
Other Components for
Shareholders’ Equity |
875,316,237 |
941,028,463 |
1,263,081,004 |
|
Total Shareholders' Equity |
241,863,464 |
[1,554,499,308] |
[639,633,344] |
|
Total Liabilities & Shareholders' Equity |
3,881,624,094 |
3,700,182,161 |
4,053,511,093 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Sales & Service
Income |
2,090,860,234 |
1,996,823,024 |
1,395,868,477 |
|
Gain from Sub-Debt
Restructuring |
2,221,606,638 |
- |
- |
|
Other Income |
134,767,479 |
368,949,311 |
190,953,318 |
|
Total Revenues |
4,447,234,351 |
2,365,772,335 |
1,586,821,795 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
2,244,709,585 |
2,189,063,375 |
1,779,556,013 |
|
Selling Expenses |
11,014,405 |
16,993,586 |
29,188,941 |
|
Administrative Expenses |
141,535,221 |
115,538,490 |
111,333,689 |
|
Doubtful |
- |
329,935,848 |
386,040,054 |
|
Remuneration’s Management |
- |
- |
13,603,750 |
|
Total Expenses |
2,397,259,211 |
2,651,531,299 |
2,319,722,447 |
|
|
|
|
|
|
Profit / [Loss] before Financial
Cost & Income Tax |
2,049,975,140 |
[285,758,964] |
[732,900,652] |
|
Financial Cost |
[183,398,779] |
[293,512,411] |
[317,510,383] |
|
Profit / [Loss] before Income Tax |
1,866,576,361 |
[579,271,375] |
[1,050,411,035] |
|
Income Tax |
[4,501,363] |
[4,514,283] |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
1,862,074,998 |
[583,785,658] |
[1,050,411,035] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.22 |
0.06 |
0.10 |
|
QUICK RATIO |
TIMES |
0.04 |
0.03 |
0.02 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.72 |
0.65 |
0.43 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.54 |
0.54 |
0.34 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
83.86 |
27.99 |
61.98 |
|
INVENTORY TURNOVER |
TIMES |
4.35 |
13.04 |
5.89 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
14.88 |
9.73 |
20.13 |
|
RECEIVABLES TURNOVER |
TIMES |
24.52 |
37.50 |
18.13 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
152.28 |
109.89 |
144.49 |
|
CASH CONVERSION CYCLE |
DAYS |
(53.53) |
(72.16) |
(62.38) |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
107.36 |
109.63 |
127.49 |
|
SELLING & ADMINISTRATION |
% |
7.30 |
6.64 |
10.07 |
|
INTEREST |
% |
8.77 |
14.70 |
22.75 |
|
GROSS PROFIT MARGIN |
% |
105.34 |
8.85 |
(13.81) |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
98.04 |
(14.31) |
(52.50) |
|
NET PROFIT MARGIN |
% |
89.06 |
(29.24) |
(75.25) |
|
RETURN ON EQUITY |
% |
769.89 |
- |
- |
|
RETURN ON ASSET |
% |
47.97 |
(15.78) |
(25.91) |
|
EARNING PER SHARE |
BAHT |
7.38 |
(2.31) |
(4.16) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.94 |
1.42 |
1.16 |
|
DEBT TO EQUITY RATIO |
TIMES |
15.05 |
(3.38) |
(7.34) |
|
TIME INTEREST EARNED |
TIMES |
11.18 |
(0.97) |
(2.31) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
4.71 |
43.05 |
|
|
OPERATING PROFIT |
% |
(817.38) |
(61.01) |
|
|
NET PROFIT |
% |
418.97 |
44.42 |
|
|
FIXED ASSETS |
% |
(5.66) |
(5.60) |
|
|
TOTAL ASSETS |
% |
4.90 |
(8.72) |
|
ANNUAL GROWTH : SATISFACTORY
An annual sales growth is 4.71%. Turnover has increased from THB
1,996,823,024.00 in 2012 to THB 2,090,860,234.00 in 2013. While net profit has increased
from THB -583,785,658.00 in 2012 to THB 1,862,074,998.00 in 2013. And total
assets has increased from THB 3,700,182,161.00 in 2012 to THB 3,881,624,094.00
in 2013.
PROFITABILITY : EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
105.34 |
Impressive |
Industrial Average |
17.61 |
|
Net Profit Margin |
89.06 |
Impressive |
Industrial Average |
0.95 |
|
Return on Assets |
47.97 |
Impressive |
Industrial Average |
1.35 |
|
Return on Equity |
769.89 |
Impressive |
Industrial Average |
3.87 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from revenues after accounting for
the cost of goods sold. Gross profit margin serves as the source for paying
additional expenses and future savings. Gross Profit Margin is 105.34%. 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. Net Profit Margin ratio is 89.06%,
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
47.97%, 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 769.89%, 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 |
0.22 |
Risky |
Industrial Average |
1.26 |
|
Quick Ratio |
0.04 |
|
|
|
|
Cash Conversion Cycle |
(53.53) |
|
|
|
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 0.22 times in 2013, increase from 0.06 times, then the company may not be
efficiently using its current assets. 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 0.04 times in 2013,
increase from 0.03 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 -54 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.94 |
Acceptable |
Industrial Average |
0.81 |
|
Debt to Equity Ratio |
15.05 |
Risky |
Industrial Average |
2.15 |
|
Times Interest Earned |
11.18 |
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 11.18 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 0.94 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 |
0.72 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.54 |
Deteriorated |
Industrial Average |
1.73 |
|
Inventory Conversion Period |
83.86 |
|
|
|
|
Inventory Turnover |
4.35 |
Satisfactory |
Industrial Average |
4.83 |
|
Receivables Conversion Period |
14.88 |
|
|
|
|
Receivables Turnover |
24.52 |
Impressive |
Industrial Average |
9.42 |
|
Payables Conversion Period |
152.28 |
|
|
|
The company's Account Receivable Ratio is calculated as 24.52 and 37.50
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 28 days at the end of 2012 to
84 days at the end of 2013. This represents a negative trend. And Inventory
turnover has decreased from 13.04 times in year 2012 to 4.35 times in year
2013.
The company's Total Asset Turnover is calculated as 0.54 times and 0.54
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.60.47 |
|
UK Pound |
1 |
Rs.100.35 |
|
Euro |
1 |
Rs.79.86 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
SDA |
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.