MIRA INFORM REPORT
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Report Date : |
18.12.2014 |
IDENTIFICATION DETAILS
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Name : |
MENAM STAINLESS WIRE PUBLIC COMPANY LIMITED |
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Registered Office : |
299 Moo 6, T. Bangpreang, A. Bangbor, Samutprakarn 10560 |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
28.09.1989 |
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Com. Reg. No.: |
0107550000262 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Subject is engaged in manufacturing, distributing and exporting various kinds of stainless steels |
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No of Employees : |
280 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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) |
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|
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
With a well-developed infrastructure, a free-enterprise
economy, generally pro-investment policies, and strong export industries,
|
Source
: CIA |
COMPANY NAME
MENAM
STAINLESS WIRE PUBLIC
COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 299
MOO 6, T. BANGPREANG, A. BANGBOR,
TELEPHONE : [66] 2725-3999
FAX :
[66] 2725-3939,
2728-3949
E-MAIL
ADDRESS : info@menamstainless.com
sales@menamstainless.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1989
REGISTRATION
NO. : 0107550000262 [Former
: 9202/2532]
TAX
ID NO. : 3101748253
CAPITAL REGISTERED : BHT. 299,000,000
CAPITAL PAID-UP : BHT.
224,000,000
SHAREHOLDER’S PROPORTION : THAI :
85.00%
FOREIGN :
15.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MS.
RUNGRAT SIRIRATANAPANICH, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 280
LINES
OF BUSINESS : STAINLESS STEEL
WIRE AND RELATED PRODUCTS
MANUFACTURER, DISTRIBUTOR
AND EXPOTER
CORPORATE PROFILE
|
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established on September
28, 1989 as
a private limited
company under the name
style “Menam Stainless
Wire Ltd.,” by
Thai and foreign
groups, in order
to manufacture wide
range of stainless
steel wire and
related products.
It was granted a promotional
privilege by
The subject also achieved World Most
Recognition Standard,
Japanese Industrial Standard
(JIS) and the
ISO 9001:2000, ISO 9001 :
2008, and ISO
14001 : 2004 certifications from
SGS YARSLEY INTERNATIONAL, as
well as TS16949
certification by URS
in 2012.
On December
27, 2007, the subject’s status
was converted to
a public limited
company under the
name MENAM STAINLESS WIRE PUBLIC COMPANY LIMITED. It currently employs
approximately 280 staff.
The subject’s registered address
was initially at 429
Moo 17, Bangplee Industrial
Estate, Bangsaothong, Samutprakarn
10540.
In 2009, the subject’s registered
address was relocated
to 299 Moo 6,
T. Bangpreang,
A. Bangbor,
Samutprakarn 10560, and
this is the
subject’s current operation
address.
NOTE
: Referring to your
order under the
name “Menam Stainless
Steel Wire Public
Company Limited”, we
would like to
confirm the correct
subject’s name is
“MENAM STAINLESS WIRE
PUBLIC COMPANY LIMITED”.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Wisit Kittiwatanakul |
[x] |
Thai |
67 |
|
Ms. Rungrat Siriratanapanich |
[x] |
Thai |
43 |
|
Mr. Jin Kui
Lin |
[x] |
Taiwanese |
75 |
|
Mr. Atipong Wiwatanaprasert |
|
Thai |
44 |
|
Mr. Jamorn Rukvanichpong |
|
Thai |
48 |
|
Mr. Piriya Kittiwatanakul |
|
Thai |
34 |
|
Ms. Wilailuck Sakulpakdee |
|
Thai |
61 |
|
Mr. Kasemchai Nithiwannakul |
|
Thai |
66 |
|
Mr. Paisan Srisaan |
|
Thai |
58 |
|
Mr. Suraphan Wiwatanaprasert |
|
Thai |
69 |
AUTHORIZED PERSON
Any two of the mentioned
directors [x] can jointly sign on behalf of the subject with company’s
affixed.
MANAGEMENT
Ms. Rungrat Siriratanapanich is
the Managing Director.
She is Thai
nationality with the
age of 43 years old.
Mr. Vichai Chaemchantuk is
the Factory Manager.
He is Thai
nationality.
Mr. Irin Laosamut is
the Sales & Marketing Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is engaged in manufacturing, distributing and
exporting various kinds
of stainless steels, which
are divided into 5
main products, e.g. stainless steel
wire and bar, stainless profile wire,
stainless automotive exhaust
welding consumable, stainless
welding consumable and
alloy/carbon steel, under
its own brand
“MENAM”.
PRODUCTION CAPACITY
12,000 metric tons
per year
PURCHASE
Most of raw materials mainly
steel sheet and chemical are
purchased from local
suppliers and agents,
the remaining is imported
from Japan, Taiwan, Republic of China, Australia
and Germany.
SALES
80% of the
products is sold
by wholesale to
dealers and manufacturers.
EXPORT
20%
of the products is
exported to Taiwan,
Republic of China, Singapore,
Indonesia, Malaysia, Hong Kong,
Australia, Philippines, Japan, Vietnam, United Kingdom, France, Russia, Turkey,
U.S.A., Argentina, Chile, Germany, Italy
and Middle East
countries.
SUBSIDIARY AND AFFILIATED
COMPANY
Menam Machanica Co., Ltd.
Business Type : Manufacturer
of steel structure
LITIGATION
Bankruptcy and Receivership
There are no litigation
on bankruptcy and
receivership cases filed
against the subject
found at Legal
Execution Department for
the past five
years.
Others
There are no
legal suits filed
against the subject
according for the
past two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BUSINESS TRANSACTION
The products are
sold both by
cash and credit
with the maximum
credit given at
30-60 days. The subject is not found to have problem
on its account
receivable.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately 280 staff. [office, sales
staff and factory workers]
LOCATION DETAILS
The premise is rented
for administrative office,
factory and warehouse at the
heading address. Premise
is located in
industrial area.
Branch
office is located
at 429 Moo
17, Bangplee Industrial
Estate, T. Bangsaothong,
A. Bangbor,
Samutprakarn 10560.
COMMENT
The
company has been
established over 25 years
of continual research,
development and improvement. Subject is
now recognized as
a world leading
producer of Stainless
Steel Wire and
Bar, with products
distributed across the world.
The subject’s business performance at the
end of the
year 2013 was
strong. Despite overall
country’s economy slowdown,
the subject is
able to maintain
a good business.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 60,000,000
divided into 600,000
shares of Bht.100
each.
The
capital was increased
later as follows:
Bht. 224,000,000
on November 22,
2007
Bht. 299,000,000
on January 11,
2008
The
latest registered capital
was increased to
Bht. 299 million,
divided into 299,000,000
shares of Bht.
1 each.
MAIN SHAREHOLDERS : [as at
April 30, 2014]
at Bht. 224,000,000
of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Suraphan Wiwatanaprasert Nationality: Thai Address : 1183/8-10
Songwad Road, Samphantawong, Bangkok |
38,218,600 |
17.07 |
|
Ms. Monsalai Rakvanichpong Nationality: Thai Address : 37/8
Ploenchit Road, Lumpini, Pathumwan, Bangkok |
34,920,000 |
15.59 |
|
Mrs. Thanaporn
Pichayachittipong Nationality: Thai Address : 21/3
Trok Rongnamkaeng, Taladnoi,
Samphantawong, Bangkok |
24,320,000 |
10.86 |
|
Mr. Jin Kui Lin Nationality: Taiwanese Address : 64
Kwangmin Road, Wumeichen,
Yinninzen,
Taiwan |
22,400,000 |
10.00 |
|
Ms. Rungrat Siriratanapanich Nationality: Thai Address : 70/17
Soi Ramkhamhaeng 164,
Ramkhamhaeng
Rd., Minburi, Bangkok |
22,400,000 |
10.00 |
|
Mr. Wisit Kittiwatanakul Nationality: Thai Address : 88/3-90
Samphantawong, Bangkok 10100 |
13,440,000 |
6.00 |
|
|
|
|
|
Ms. Chia Ling
lin Nationality: Taiwanese Address : 27
Hoping Road, Huwei,
Yunling, Taiwan |
11,200,000 |
5.00 |
|
Ms. Vinita Kittiwatanakul Nationality: Thai Address : 88/3-90
Samphantawong, Bangkok 10100 |
5,261,400 |
2.35 |
|
Mr. Peera Kittiwatanakul Nationality: Thai Address : 88/3-90
Samphantawong, Bangkok 10100
|
5,226,700 |
2.33 |
|
Mr. Piriya Kittiwatanakul Nationality: Thai Address : 88/3-90
Samphantawong, Bangkok 10100
|
5,226,700 |
2.33 |
|
Mr. Nathapol Kittiwatanakul Nationality: Thai Address : 21/3
Trok Rongnamkaeng, Taladnoi,
Samphantawong, Bangkok |
5,226,700 |
2.33 |
|
Ms. Suthinee Kittiwatanakul Nationality: Thai Address : 21/3
Trok Rongnamkaeng, Taladnoi,
Samphantawong, Bangkok |
5,226,700 |
2.33 |
|
Ms. Natvara Kittiwatanakul Nationality: Thai Address : 88/3-90
Samphantawong, Bangkok 10100
|
5,226,700 |
2.33 |
|
Others |
25,706,500 |
11.48 |
Total Shareholders : 30
Share Structure [as
at April 30, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
28 |
190,400,000 |
85.00 |
|
Foreign - Taiwanese |
2 |
33,600,000 |
15.00 |
|
Total |
30 |
224,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Athipong Athipongsakul No.
3500
BALANCE SHEET [BAHT]
The
latest financial figures
published for December 31,
2013, 2012 & 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 [Restated] |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
5,085,183.63 |
4,589,699.13 |
26,968,068.41 |
|
Trade Accounts & Other Receivable |
218,932,218.08 |
200,306,613.16 |
201,118,441.53 |
|
Inventories |
256,727,637.03 |
313,203,172.90 |
396,947,724.04 |
|
|
|
|
|
|
Total Current Assets
|
480,745,038.74 |
518,099,485.19 |
625,034,233.98 |
|
Cash at Bank pledged as a Collateral |
50,000,000.00 |
- |
- |
|
Fixed Assets |
481,895,998.67 |
506,246,538.98 |
548,469,249.22 |
|
Intangible Assets |
3,567,253.97 |
3,644,262.18 |
5,408,588.78 |
|
Deferred Income Tax Assets |
2,766,485.16 |
2,468,971.17 |
|
|
Other Non-current Assets |
5,869.15 |
238,209.16 |
268,809.16 |
|
Total Assets |
1,018,980,645.69 |
1,030,697,466.68 |
1,179,180,881.14 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 [Restated] |
2011 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
357,754,291.24 |
386,655,192.46 |
495,936,069.30 |
|
Trade Accounts &
Other Payable |
155,779,283.05 |
98,926,788.18 |
72,256,183.86 |
|
Current Portion of
Long-term Loan from Financial Institution |
50,398,155.93 |
54,840,000.00 |
54,840,000.00 |
|
Other Current Liabilities |
- |
- |
10,172,096.26 |
|
|
|
|
|
|
Total Current Liabilities |
563,931,730.22 |
540,421,980.64 |
633,204,349.42 |
|
Long-term Loan from Financial
Institution |
50,262,633.48 |
103,450,245.19 |
156,132,453.78 |
|
Employee Benefit Obligation |
10,091,461.92 |
8,603,892.00 |
7,197,725.00 |
|
Deferred Income Tax Liabilities |
8,708,139.54 |
6,891,703.09 |
- |
|
Total Liabilities |
632,993,965.16 |
659,367,820.92 |
796,534,528.20 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1
par value Authorized & issued share
capital 299,000,000 shares |
299,000,000.00 |
299,000,000.00 |
299,000,000.00 |
|
|
|
|
|
|
Capital Paid |
224,000,000.00 |
224,000,000.00 |
224,000,000.00 |
|
Retained Earning Appropriated for Statutory Reserve |
24,395,843.78 |
23,662,992.04 |
23,257,690.80 |
|
Unappropriated |
137,590,836.75 |
123,666,653.72 |
135,388,662.14 |
|
Total Shareholders' Equity |
385,986,680.53 |
371,329,645.76 |
382,646,352.94 |
|
Total Liabilities & Shareholders' Equity |
1,018,980,645.69 |
1,030,697,466.68 |
1,179,180,881.14 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2013 |
2012 [Restated] |
2011 |
|
|
|
|
|
|
Sales |
1,302,011,778.28 |
1,391,684,892.27 |
1,178,806,352.03 |
|
Other Income |
31,119,947.99 |
46,023,823.64 |
12,192,943.03 |
|
Total Revenues |
1,333,131,726.27 |
1,437,708,715.91 |
1,190,999,295.06 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,194,713,160.70 |
1,322,261,414.50 |
989,501,166.03 |
|
Selling Expenses |
25,166,372.09 |
25,443,567.95 |
23,384,796.78 |
|
Administrative Expenses |
79,481,577.94 |
54,073,596.26 |
73,075,168.16 |
|
Total Expenses |
1,299,361,110.73 |
1,401,778,578.71 |
1,085,961,130.97 |
|
|
|
|
|
|
Profit before Financial
Cost & Income Tax |
33,770,615.54 |
35,930,137.20 |
105,038,164.09 |
|
Financial Cost |
[16,594,082.09] |
[26,278,129.92] |
[28,836,504.23] |
|
|
|
|
|
|
Profit before Income Tax |
17,176,533.45 |
9,652,007.28 |
76,201,659.86 |
|
Income Tax |
[2,519,498.68] |
[2,298,736.29] |
[20,650,547.68] |
|
|
|
|
|
|
Net Profit / [Loss] |
14,657,034.77 |
7,353,270.99 |
55,551,112.18 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.85 |
0.96 |
0.99 |
|
QUICK RATIO |
TIMES |
0.40 |
0.38 |
0.36 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.70 |
2.75 |
2.15 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.28 |
1.35 |
1.00 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
78.43 |
86.46 |
146.42 |
|
INVENTORY TURNOVER |
TIMES |
4.65 |
4.22 |
2.49 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
61.37 |
52.53 |
62.27 |
|
RECEIVABLES TURNOVER |
TIMES |
5.95 |
6.95 |
5.86 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
47.59 |
27.31 |
26.65 |
|
CASH CONVERSION CYCLE |
DAYS |
92.22 |
111.68 |
182.04 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.76 |
95.01 |
83.94 |
|
SELLING & ADMINISTRATION |
% |
8.04 |
5.71 |
8.18 |
|
INTEREST |
% |
1.27 |
1.89 |
2.45 |
|
GROSS PROFIT MARGIN |
% |
10.63 |
8.30 |
17.09 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.59 |
2.58 |
8.91 |
|
NET PROFIT MARGIN |
% |
1.13 |
0.53 |
4.71 |
|
RETURN ON EQUITY |
% |
3.80 |
1.98 |
14.52 |
|
RETURN ON ASSET |
% |
1.44 |
0.71 |
4.71 |
|
EARNING PER SHARE |
BAHT |
0.07 |
0.03 |
0.25 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.62 |
0.64 |
0.68 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.64 |
1.78 |
2.08 |
|
TIME INTEREST EARNED |
TIMES |
2.04 |
1.37 |
3.64 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(6.44) |
18.06 |
|
|
OPERATING PROFIT |
% |
(6.01) |
(65.79) |
|
|
NET PROFIT |
% |
99.33 |
(86.76) |
|
|
FIXED ASSETS |
% |
(4.81) |
(7.70) |
|
|
TOTAL ASSETS |
% |
(1.14) |
(12.59) |
|
ANNUAL GROWTH : RISKY
An annual sales growth is -6.44%. Turnover has decreased from THB
1,391,684,892.27 in 2012 to THB 1,302,011,778.28 in 2013. While net profit has
increased from THB 7,353,270.99 in 2012 to THB 14,657,034.77 in 2013. And total
assets has decreased from THB 1,030,697,466.68 in 2012 to THB 1,018,980,645.69
in 2013.
PROFITABILITY : IMPRESSIVE
PROFITABILITY RATIO
|
Gross Profit Margin |
10.63 |
Deteriorated |
Industrial Average |
23.99 |
|
Net Profit Margin |
1.13 |
Impressive |
Industrial
Average |
0.81 |
|
Return on Assets |
1.44 |
Impressive |
Industrial
Average |
1.03 |
|
Return on Equity |
3.80 |
Impressive |
Industrial
Average |
2.83 |
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 10.63%. When
compared with the industry average, the ratio of the company was lower. This
indicated that company may have problems with control over its costs.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company's figure is 1.13%,
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
1.44%, higher figure when compared with those of its average competitors in the
same industry, indicated that business was an efficient profits 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 3.8%, higher figure when compared
with those of its average competitors in the same industry, indicated that
business was an efficient profit in a
dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.85 |
Risky |
Industrial
Average |
1.08 |
|
Quick Ratio |
0.40 |
|
|
|
|
Cash Conversion Cycle |
92.22 |
|
|
|
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 0.85 times in 2013, decreased from 0.96 times, then the company may have
problems meeting its short-term obligations. 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 0.4 times in 2013,
increased from 0.38 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 93 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.62 |
Impressive |
Industrial
Average |
0.64 |
|
Debt to Equity Ratio |
1.64 |
Acceptable |
Industrial
Average |
1.80 |
|
Times Interest Earned |
2.04 |
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 2.04 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 0.62 greater than 0.5, most of the
company's assets are financed through debt.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Uptrend
Times Interest Earned Stable
ACTIVITY : EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.70 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.28 |
Impressive |
Industrial
Average |
1.27 |
|
Inventory Conversion Period |
78.43 |
|
|
|
|
Inventory Turnover |
4.65 |
Impressive |
Industrial
Average |
3.75 |
|
Receivables Conversion Period |
61.37 |
|
|
|
|
Receivables Turnover |
5.95 |
Impressive |
Industrial
Average |
5.86 |
|
Payables Conversion Period |
47.59 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.95 and 6.95 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 86 days at the
end of 2012 to 78 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 4.22 times in year 2012 to 4.65 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.28 times and 1.35
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 Uptrend
Receivables Turnover Downtrend
|
Key Areas |
Score |
Weight |
Weighted
Score |
|
LIQUIDITY RATIO |
- |
25.00 |
- |
|
ACTIVITY RATIO |
4.00 |
20.00 |
80.00 |
|
PROFITABILITY
RATIO |
3.00 |
25.00 |
75.00 |
|
LEVERAGE RATIO |
3.11 |
10.00 |
31.10 |
|
ANNUAL GROWTH |
0.80 |
20.00 |
16.00 |
|
Total Weight
(excluding - - Score) |
|
100.00 |
|
|
|
|
|
202.10 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 63.58 |
|
|
1 |
Rs. 99.98 |
|
Euro |
1 |
Rs. 79.39 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
DPT |
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.