MIRA INFORM REPORT
|
Report Date : |
10.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
SCG
TRADING CO., LTD. |
|
|
|
|
Formerly Known As : |
SCT CO., LTD |
|
|
|
|
Registered Office : |
1 Siam Cement
Rd., Bangsue, Bangkok 10800 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
23.03.1962 |
|
|
|
|
Com. Reg. No.: |
0105505000494 [Former :
66/2505] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is an international trading
company to import,
distribute and export
a variety of
products from Siam
Cement Group of
Companies. Subject
products are as
the followings: · Energy · Alternative Energy · Nonferrous Scrap & Plastic Scrap · Steel Scrap · Waste Paper · Bathroom and Decoration · Cement · Ceiling and Partition · Insulation · Roofing Products · Steel · Wooden and Decorative Products · Agro-Industry · Aluminum & Non-Ferrous · Paper & Pulp · Plastic & Chemical · Raw Material and Minerals · Oil and Gas · Food & Beverage |
|
|
|
|
No of Employees : |
approximately
380 ( office and sales
staff) |
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
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
SCG TRADING CO., LTD.
[FORMER : SCT CO., LTD.]
SUMMARY
BUSINESS
ADDRESS : 1
SIAM CEMENT ROAD,
BANGSUE,
BANGKOK 10800,
THAILAND
TELEPHONE : [66] 2586-1888
FAX :
[66] 2587-2159,
2587-2203
E-MAIL
ADDRESS : scg-trading@scg.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1962
REGISTRATION
NO. : 0105505000494 [Former : 66/2505]
TAX
ID NO. : 3101004137
CAPITAL REGISTERED : BHT. 400,000,000
CAPITAL PAID-UP : BHT.
400,000,000
SHAREHOLDER’S PROPORTION : THAI
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
BUNN KASEMSUP, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 380
LINES
OF BUSINESS : INTERNATIONAL TRADING
COMPANY
IMPORTER, 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
initially established on
March 23, 1962
as a private
limited company under
the registered name “Construction
Material Marketing Co., Ltd.” by
a joint venture
between Siam Cement
Public Co., Ltd.
and The Thai
Commercial Banks to operate as
a trading company
in Thailand.
Later, the subject
became a wholly
owned subsidiary of
the Siam Cement Group,
then subject’s name
was changed to
SIAM CEMENT TRADING
CO., LTD. on
October 14, 1964.
On October 12,
1978, the subject’s
name was changed
again to SCT
CO., LTD., and
was finally changed
to SCG TRADING
CO., LTD., on
November 30, 2010.
In 1998, subject
was awarded the
Prime Minister’s Export
Award as the
Best Exporter.
SCT was also
the first international
trading company in
Thailand to receive
the TIS/ISO 9002
certification for quality assurance
production.
The subject operates
in 4 core business
areas: energy, recycling,
construction materials and
industrial supplies. It
currently employs approximately
380 staff.
Presently, the subject
is a wholly
owned subsidiary of
SCG Distribution Co.,
Ltd., which is a member of SCG group of
companies, by the
principle company is The
Siam Cement Public
Company Limited.
The subject’s registered
address is 1
Siam Cement Rd.,
Bangsue, Bangkok 10800, and
this is the
subject’s current operation
address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kajorndej Saengsuphan |
[x] |
Thai |
61 |
|
Mr. Klin Sarasin |
|
Thai |
53 |
|
Mr. Pichit Maipoom |
[x] |
Thai |
58 |
|
Mr. Aree Chavalitchewinkul |
[x] |
Thai |
51 |
|
Mr. Bunn Kasemsup |
[x] |
Thai |
47 |
|
Mr. Nithi Phatrachoke |
[x] |
Thai |
51 |
AUTHORIZED PERSON
Any two of
the mentioned directors [x] can jointly
sign on behalf of the subject
with
company’s affixed.
MANAGEMENT
Mr. Bunn Kasemsup
is the Managing
Director.
He is Thai
nationality with the
age of 47 years
old.
Mr. Visan Uthanesut
is the Products
Manager.
He is Thai
nationality.
Mr. Somwang Virachsilp is
the Business Division
Manager.
He is Thai
nationality.
Mr. Akaraphon Decharak
is the Overseas
Division Manager.
He is Thai
nationality.
Mr. Sarayuth Saengchan
is the Finance
& Administration Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is an international
trading company to
import, distribute and
export a variety
of products from
Siam Cement Group
of Companies. Its
products are as
the followings:
Energy
Alternative Energy
Nonferrous Scrap &
Plastic Scrap
Steel Scrap
Waste Paper
Bathroom and Decoration
Cement
Ceiling and Partition
Insulation
Roofing Products
Steel
Wooden and Decorative
Products
Agro-Industry
Aluminum & Non-Ferrous
Paper & Pulp
Plastic & Chemical
Raw Material and Minerals
Oil and Gas
Food & Beverage
PURCHASE
The products are
imported from United
States of America,
Canada, Australia, European
and Asian countries,
as well as
purchasing from local
suppliers.
MAJOR SUPPLIERS
SCG Group of
Companies : Thailand
Domtar Inc. : Canada
SALES [LOCAL]
Its products are
sold to manufacturers, wholesalers,
end-users and Thai Government.
EXPORT [COUNTRIES]
The major export
products are food
and construction materials.
Its products are
exported to over
30 countries worldwide,
such as Indonesia,
Korea, Singapore, Hong
Kong, Laos, U.A.E.,
Bangladesh, United States
of America, Vietnam,
Myanmar, Taiwan, India,
Australia, Republic of China, Malaysia,
Canada, Hungary, France,
Russia, Cambodia,
Philippines, Brazil, South
Africa and Middle
East countries.
MAJOR CUSTOMERS
SCG Trading [USA]
Inc. : United
States of America
SCG Trading [Cambodia]
Co., Ltd. : Cambodia
SCG Trading Guangzhou
Co., Ltd. : Republic of
China
SCG Trading Hong
Kong Ltd. :
Hong Kong
SCGT Malaysia Sdn. Bhd. : Malaysia
SCG Trading Philippines
Inc. : Philippines
SCG Singapore Trading
Pte. Ltd. : Singapore
SCG Trading Australia
Pty. Ltd. : Australia
SCG Trading Emirates
L.L.C. : United
Arab Emirate
PT. SCG Trading Indonesia : Indonesia
Siam Cement Myanmar
Trading Ltd. :
Myanmar
PARENT COMPANY
SCG Distribution Co.,
Ltd.
Branches office/Distribution Center:
There are currently 36
branches and distribution
centers in 25
worldwide countries.
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 30-60-90 days.
Local bills are
paid by cash
or on the
credits term of
30-60-90 days.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BANKING
Kasikornbank Public Co.,
Ltd.
[Head Office : 1 Kasikorn Lane,
Rajburana Rd., Rajburana,
Bangkok 10140]
The Siam Commercial
Bank Public Co., Ltd.
[Head Office : 9
Ratchadapisek Rd., Ladyao,
Jatujak, Bangkok 10900]
Export-Import Bank of
Thailand
[Head Office :
1193 Phaholyothin Rd.,
Samsennai, Phyathai, Bangkok
10400]
Bangkok Bank Public
Co., Ltd.
[Head Office : 333
Silom Rd., Silom,
Bangrak, Bangkok 10500
Citibank, NA
[Head Office : 82
North Sathorn Rd.,
Bangrak, Bangkok 10500]
EMPLOYMENT
The subject employs
approximately 380 office
and sales staff.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address in commercial/ residential area.
Premise is shared
with Siam Cement
Group.
COMMENT
SCG Trading Co.,
Ltd. is one of Thailand’s
long established and
most prestigious international
trading companies. Formerly known
as Siam Cement Trading Co.,
Ltd., it was
established over 40
years ago to
promote the growth
of Thai industries
and the export
of Thai products to the
world market. Notable were
canned foods, frozen seafood,
garments, minerals, paper
and construction materials.
The company is
determined to provide
the highest level
of customer satisfaction,
and developing a
customer relationship and management program
to fully cater
needs and requirements
of its customers.
The subject is
considered to have a
solid business.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 60,000,000 divided
into 600,000 shares
of Bht. 100
each.
Capital was increased
later as followings
:
Bht. 120,000,000
in April 1968
Bht. 400,000,000
on March 26,
2000
The latest registered
capital was increased
to Bht. 400,000,000
divided into 4,000,000
shares of Bht.
100 each with
fully paid.
MAIN OF
SHAREHOLDERS : [as at April
24, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
SCG Distribution Co.,
Ltd. Nationality: Thai Address : 1 Siam
Cement Rd., Bangsue,
Bangkok |
3,998,813 |
99.97 |
|
Mrs. Pasanuch Suphanvanich Nationality: Thai Address : 26/9
Ngamwongwan Rd., Thungsonghong, Laksi, Bangkok |
260 |
|
|
Mr. Kittiphan Hetrakul Nationality: Thai Address : 8
Sakhumvit 21 Rd.,
Klongtoey, Bangkok |
228 |
= 0.03 |
|
Mrs. Tanpien Jiamvijit Nationality: Thai Address : 160/29
Soi Mooban Panya,
Suanluang, Bangkok |
195 |
|
|
Others |
504 |
|
Total Shareholders : 32
Share Structure [as
at April 24,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
32 |
4,000,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
32 |
4,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Sureerat Thongarunsaeng No.
4409
BALANCE SHEET [BAHT]
The
latest financial figures
published for December 31,
2013, 2012 and 2011
were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalent |
7,456,138 |
19,755,729 |
22,895,336 |
|
Trade Accounts and
Other Receivable |
3,361,770,896 |
2,229,940,832 |
2,149,677,644 |
|
Short-term Lending to Related Company |
42,274,091 |
174,211,401 |
121,978,461 |
|
Goods for Sales |
1,187,074,974 |
1,649,941,495 |
1,654,811,268 |
|
Other Current Assets
|
164,067,129 |
182,740,965 |
112,679,002 |
|
|
|
|
|
|
Total Current Assets
|
4,762,643,228 |
4,256,590,422 |
4,062,041,711 |
|
Investment in Subsidiaries and Associated Companies |
298,812,033 |
265,523,622 |
317,495,284 |
|
Other Long-term Investment |
980,390 |
1,040,304 |
1,009,973 |
|
Long-term Lending to Related
Company |
- |
33,706,490 |
34,919,953 |
|
Fixed Assets |
138,834,231 |
195,721,773 |
153,478,284 |
|
Intangible Assets |
77,392,676 |
71,025,779 |
75,689,069 |
|
Deferred Income Tax
Assets |
71,936,700 |
79,304,336 |
63,875,592 |
|
Other Non-current Assets
|
41,009,415 |
108,909,570 |
47,343,684 |
|
Total Assets |
5,391,608,673 |
5,011,822,296 |
4,755,853,550 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts and
Other Payable |
3,346,902,057 |
2,923,360,601 |
2,870,377,953 |
|
Short-term Loan from
Related Company |
580,331,926 |
648,700,845 |
620,439,548 |
|
Accrued Income Tax |
- |
2,608,972 |
34,278,729 |
|
Short-term Estimated
Liabilities |
5,492,074 |
3,778,193 |
4,228,667 |
|
Other Current Liabilities |
19,172,522 |
24,568,866 |
22,954,848 |
|
|
|
|
|
|
Total Current Liabilities |
3,951,898,579 |
3,603,017,477 |
3,552,279,745 |
|
|
|
|
|
|
Liabilities from Employee
Benefits |
67,434,933 |
43,030,056 |
30,653,771 |
|
Total Liabilities |
4,019,333,512 |
3,646,047,533 |
3,582,933,516 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 4,000,000 shares |
400,000,000 |
400,000,000 |
400,000,000 |
|
|
|
|
|
|
Capital Paid |
400,000,000 |
400,000,000 |
400,000,000 |
|
Premium on Share Capital |
25,023,100 |
25,023,100 |
25,023,100 |
|
Retained Earning Appropriated for Statutory Reserve |
14,976,900 |
14,976,900 |
14,976,900 |
|
Unappropriated |
932,220,965 |
925,714,254 |
732,883,789 |
|
Other Components of Shareholders’ Equity |
54,196 |
60,509 |
36,245 |
|
Total Shareholders' Equity |
1,372,275,161 |
1,365,774,763 |
1,172,920,034 |
|
Total Liabilities &
Shareholders' Equity |
5,391,608,673 |
5,011,822,296 |
4,755,853,550 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales & Service
Income |
30,780,787,640 |
30,524,445,557 |
28,064,635,936 |
|
Other Income |
320,394,229 |
254,223,568 |
134,315,487 |
|
Gain on Exchange
Rate |
46,350,070 |
139,103,752 |
304,892,537 |
|
Total Revenues |
31,147,531,939 |
30,917,772,877 |
28,503,843,960 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
26,618,461,796 |
25,699,900,867 |
23,409,976,542 |
|
Selling Expenses |
3,227,351,651 |
3,721,692,622 |
3,545,542,071 |
|
Administrative Expenses |
992,661,552 |
1,114,806,286 |
1,016,047,113 |
|
Total Expenses |
30,838,474,999 |
30,536,399,775 |
27,971,565,726 |
|
|
|
|
|
|
Profit before Financial
Cost & Income Tax
|
309,056,940 |
381,373,102 |
532,278,234 |
|
Financial Cost |
[21,438,728] |
[19,191,321] |
- |
|
|
|
|
|
|
Profit before Income
Tax |
287,618,212 |
362,181,781 |
532,278,234 |
|
Income Tax |
[9,111,501] |
[61,351,316] |
[154,678,376] |
|
|
|
|
|
|
Net Profit / [Loss] |
278,506,711 |
300,830,465 |
377,599,858 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.21 |
1.18 |
1.14 |
|
QUICK RATIO |
TIMES |
0.86 |
0.67 |
0.65 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
221.71 |
155.96 |
182.86 |
|
TOTAL ASSETS TURNOVER |
TIMES |
5.71 |
6.09 |
5.90 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
16.28 |
23.43 |
25.80 |
|
INVENTORY TURNOVER |
TIMES |
22.42 |
15.58 |
14.15 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
39.86 |
26.66 |
27.96 |
|
RECEIVABLES TURNOVER |
TIMES |
9.16 |
13.69 |
13.06 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
45.89 |
41.52 |
44.75 |
|
CASH CONVERSION CYCLE |
DAYS |
10.25 |
8.58 |
9.01 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
86.48 |
84.19 |
83.41 |
|
SELLING & ADMINISTRATION |
% |
13.71 |
15.84 |
16.25 |
|
INTEREST |
% |
0.07 |
0.06 |
- |
|
GROSS PROFIT MARGIN |
% |
14.71 |
17.09 |
18.15 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.00 |
1.25 |
1.90 |
|
NET PROFIT MARGIN |
% |
0.90 |
0.99 |
1.35 |
|
RETURN ON EQUITY |
% |
20.30 |
22.03 |
32.19 |
|
RETURN ON ASSET |
% |
5.17 |
6.00 |
7.94 |
|
EARNING PER SHARE |
BAHT |
69.63 |
75.21 |
94.40 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.75 |
0.73 |
0.75 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.93 |
2.67 |
3.05 |
|
TIME INTEREST EARNED |
TIMES |
14.42 |
19.87 |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
0.84 |
8.76 |
|
|
OPERATING PROFIT |
% |
(18.96) |
(28.35) |
|
|
NET PROFIT |
% |
(7.42) |
(20.33) |
|
|
FIXED ASSETS |
% |
(29.07) |
27.52 |
|
|
TOTAL ASSETS |
% |
7.58 |
5.38 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is 0.84%. Turnover has increased from THB
30,524,445,557.00 in 2012 to THB 30,780,787,640.00 in 2013. While net profit
has decreased from THB 300,830,465.00 in 2012 to THB 278,506,711.00 in 2013.
And total assets has increased from THB 5,011,822,296.00 in 2012 to THB
5,391,608,673.00 in 2013.
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
14.71 |
Impressive |
Industrial
Average |
11.46 |
|
Net Profit Margin |
0.90 |
Deteriorated |
Industrial
Average |
1.93 |
|
Return on Assets |
5.17 |
Satisfactory |
Industrial
Average |
6.59 |
|
Return on Equity |
20.30 |
Satisfactory |
Industrial
Average |
22.44 |
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 14.71%. 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 0.9%. When
compared with the industry average, the ratio of the company was lower.
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 5.17%.
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 20.3%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.21 |
Impressive |
Industrial
Average |
1.20 |
|
Quick Ratio |
0.86 |
|
|
|
|
Cash Conversion Cycle |
10.25 |
|
|
|
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 1.21 times in 2013, increased from 1.18 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 0.86 times in 2013,
increased from 0.67 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 11 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.75 |
Acceptable |
Industrial
Average |
0.70 |
|
Debt to Equity Ratio |
2.93 |
Risky |
Industrial
Average |
2.36 |
|
Times Interest Earned |
14.42 |
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 14.42 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 0.75 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
221.71 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
5.71 |
Impressive |
Industrial
Average |
3.41 |
|
Inventory Conversion Period |
16.28 |
|
|
|
|
Inventory Turnover |
22.42 |
Impressive |
Industrial
Average |
9.03 |
|
Receivables Conversion Period |
39.86 |
|
|
|
|
Receivables Turnover |
9.16 |
Satisfactory |
Industrial
Average |
10.31 |
|
Payables Conversion Period |
45.89 |
|
|
|
The company's Account Receivable Ratio is calculated as 9.16 and 13.69
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 decreased from 23 days at the
end of 2012 to 16 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 15.58 times in year 2012 to 22.42
times in year 2013.
The company's Total Asset Turnover is calculated as 5.71 times and 6.09
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 Downtrend
Inventory Turnover Downtrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.88 |
|
UK Pound |
1 |
Rs.96.90 |
|
Euro |
1 |
Rs.76.29 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
MNL |
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.
.