MIRA
INFORM REPORT
|
Report Date : |
26.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
NATIONAL POWER
SUPPLY PUBLIC COMPANY
LIMITED |
|
|
|
|
Formerly Known as : |
NATIONAL POWER SUPPLY
CO., LTD |
|
|
|
|
Registered Office : |
206
Moo 4, T. Thatoom,
A. Srimahaphote,
Prachinburi 25140 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
07.07.1995 |
|
|
|
|
Com. Reg. No.: |
0107553000123 [Former
: 0105538080471] |
|
|
|
|
Legal Form : |
Public
Limited Company |
|
|
|
|
Line of Business : |
· engaged in operating of Small Power Plant [SPP], with initially a total capacity of 328 MW ·
subject operates
Electricity Generating with
a total generation
capacity of 493.15
Megawatts., through its
8 power plants located in
Prachinburi province. Subject eight power
plants are operated
and located as
follows:
|
|
|
|
|
No of Employees : |
500 (Approximately) |
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 |
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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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
Thailand ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand achieved steady growth due largely to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Unemployment, at less than 1% of the labor force, stands as one of the lowest levels in the world, which puts upward pressure on wages in some industries. Thailand also attracts nearly 2.5 million migrant workers from neighboring countries. The Thai government 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
NATIONAL POWER
SUPPLY PUBLIC COMPANY
LIMITED
[Former :
NATIONAL POWER SUPPLY
CO., LTD.]
SUMMARY
BUSINESS
ADDRESS : 206
MOO 4, T. THATOOM,
A. SRIMAHAPHOTE,
PRACHINBURI 25140,
THAILAND
TELEPHONE : [66] 37
208-840-2
FAX :
[66] 37
208-856
E-MAIL
ADDRESS : pr@npp.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1995
REGISTRATION
NO. : 0107553000123 [Former
: 0105538080471]
TAX
ID NO. : 3011605264
CAPITAL REGISTERED : BHT. 10,000,000,000
CAPITAL PAID-UP : BHT. 9,354,039,200
SHAREHOLDER’S PROPORTION : THAI :
53.80%
FOREIGN :
46.20%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. YOTHIN DUMNERNCHANVANIT, THAI
PRESIDENT
NO.
OF STAFF : 500
LINES
OF BUSINESS : SMALL
POWER PLANT [SPP]
MANUFACTURER AND
SUPPLIER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on July 7,
1995 as a
private limited company under
the initially registered
name “National Power
Supply Co., Ltd.,”
originally by a
joint venture between Mr. Yothin Dumnernchanvanit, the
Thai businessman and
Billion Trend Development
Co., Ltd., the
Chinese company, operate
Small Power Plant
[SPP] and
supply to Electricity Generating Authority
of Thailand [EGAT]
and 304 Industrial
Park Co., Ltd.
On
May 26, 2010,
the subject’s status
was converted to
a public limited
company, namely NATIONAL
POWER SUPPLY PUBLIC
COMPANY LIMITED. It
currently employs approximately
500 staff.
The
subject currently is
the main operating
energy business under
Double A Power
group, one of
the leaders in
energy and renewable
energy business. The
subject has emphasized
on adopting alternative
fuels such as
biomass from agricultural
waste, bark and
black liquor as
the waste from
pulp and paper
production as well
as using anthracite
and bituminous, a
high-grade coal, mixed with biomass.
On
July 25, 2013,
the subject has
become a joint
venture company among Service
Holding Co., Ltd.,
Double A [1991] Public Company
Limited of Thailand
and Cogen Investments
Limited of British
Virgin Islands, with
holding around 54%, 36%
and 10% of
the subject’s shares respectively.
The
subject’s registered address
was initially at
122 North Sathorn
Rd., Silom, Bangrak,
Bangkok 10500.
On
July 31, 2006,
the subject’s registered
address was relocated
to 206 Moo 4, T.
Thatoom, A. Srimahaphote, Prachinburi
25140, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sitthiporn Rattanopas |
|
Thai |
66 |
|
Mr. Veerawong Jitmitraphap |
|
Thai |
52 |
|
Mr. Chainoi Phuankosum |
|
Thai |
64 |
|
Mr. Yothin Dumnernchanvanit |
|
Thai |
53 |
|
Mr. Narong Sitasuwan |
|
Thai |
66 |
|
Mr. Li Yao |
|
Chinese |
45 |
|
Gen. Surapan Poomkaew |
|
Thai |
66 |
AUTHORIZED PERSON
Any two of the above
directors can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Yothin Dumnernchanvanit is
the President.
He is Thai
nationality with the
age of 53
years old.
Mr. Apichai Sorpitiporn is
the Vice President.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in operating
of Small Power
Plant [SPP], with initially
a total capacity of
328 MW. It
has an agreement to
supply 180 MW. to
Electricity Generating Authority
of Thailand [EGAT]
for 25 years,
and approximately 140
MW. to 304
Industrial Park Co.,
Ltd., and Advance Agro
group of companies,
for 15 years.
Raw material, mainly coal
is supplied by Marubeni
Corporation, Japan, which
contracted for 15
years.
At present, subject
operates electricity generating
with a total
generation capacity of
493.15 Megawatts., through
its 8 power plants located in
Prachinburi province. Most of
the production are sold
and supplied to Electricity Generating
Authority of Thailand, and
the rest to 304
Industrial Park Co.,
Ltd.
The eight
power plants are
operated and located
as follows:
- Two biomass
power plants with
Anthracite and Bituminous mixed
with Biomass, with generation capacity
of 328 Megawatts, located
at A. Srimahaphote, Prachinburi province.
- Four biomass
power plants with bark, woodchip, black
liquor fuels, with
the generation capacity
of 95.10 Megawatts in
Prachinburi province.
- Two recovery
boiler plants with
black liquor fuel,
with the generation capacity
of 70.05 Megawatts.
RELATED AND AFFILIATED
COMPANIES
Thai Power Supply
Co., Ltd.
Business Type
: Power supply
operator
Thai Power Generating
Co., Ltd.
Business Type
: Providing power
purchase agreement with
Electricity Generating
Authority of Thailand
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 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
BANKING
Bangkok Bank Public
Co., Ltd.
Krung Thai Bank
Public Co., Ltd.
The Siam Commercial
Bank Public Co.,
Ltd.
Bank of Ayudhya
Public Co., Ltd.
EMPLOYMENT
The
subject employs approximately
500 staff.
LOCATION
DETAILS
The premise
is rented for
administrative office and power
plant at the
heading address. Premise
is located in
provincial.
Branch
office is located
at 122 North
Sathorn Road, Silom, Bangrak,
Bangkok 10500.
COMMENT
The
company is the main operating
energy business under
Double A Power group, one
of the leaders
in energy and
renewable energy business
with more than
30 years of
experience.
Besides
providing renewable energy
for power-stability of the
nations, it also
places importance on both
community and environment
by using clean technology and modern
technology. Demand of
electricity for both
industrial and consumer
consumption remains strong. The
subject has continued
growing and expanding
its capacity each year
in order to
meet with demand
from users.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 1,000,000 divided into 100,000 shares of
Bht. 10
each.
The
capital were increased
and decreased later
as following:
Bht. 1,000,000,000 on January
4, 1996 [increased]
Bht. 2,286,000,000 on November
22, 1996 [increased]
Bht. 3,386,000,000 on October
22, 1999 [increased]
Bht. 6,934,000,000 on
December 24, 2009 [increased]
Bht. 9,934,000,000 on July
8, 2010 [increased]
Bht. 9,354,039,200 on
October 30, 2013
[decreased]
Bht. 10,000,000,000 on
October 31, 2013
[increased]
The
latest registered capital
was increased to Bht. 10,000
million, divided into
1,000,000,000 shares
of Bht. 10
each with Bht.
9,354,039,200 paid-up.
THE
SHAREHOLDERS LISTED WERE
: [as at April
23, 2014] at Bht. 9,354,039,200
|
NAME |
HOLDING |
% |
|
|
|
|
|
Service Holding Co.,
Ltd. Nationality: Thai Address : 107
Moo 2, Bangsamak,
Bangpakong,
Chachoengsao |
503,263,508 |
53.80 |
|
Double A [1991]
Public Company Limited Nationality: Thai Address : 107
Moo 2, Bangsamak,
Bangpakong,
Chachoengsao |
338,599,994 |
36.20 |
|
Cogen Investments Limited Nationality: BVI Address : 957
Offshore Incorporations Center, Road Town,
Tortola, British Virgin
Islands |
93,540,392 |
10.00 |
|
Other Shareholders |
26 |
- |
Total Shareholders : 29
Share
Structure [as
at April 23,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
27 |
503,263,534 |
53.80 |
|
Foreign-BVI |
2 |
432,140,386 |
46.20 |
|
Total |
29 |
935,403,920 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Supannee Tiranantakul
No. 4498
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 |
147,998,568 |
160,369,285 |
231,876,836 |
|
Trade Accounts & Other Receivable |
|
|
|
|
Related company |
167,163,061 |
129,572,186 |
510,741,179 |
|
Non related company |
820,693,410 |
782,029,512 |
305,216,642 |
|
Total Trade Accounts
& Other Receivable |
987,856,471 |
911,601,698 |
815,957,821 |
|
Receivable Related to
Investment of Shares |
979,400,980 |
- |
- |
|
Deferred Dividend from Related Company |
154,999,993 |
49,999,978 |
167,755,080 |
|
Short-term Loan to Related Company |
3,341,451,756 |
839,110,000 |
586,010,000 |
|
Inventories |
428,209,149 |
546,351,596 |
592,222,261 |
|
Other Current Assets
|
51,049,360 |
40,573,921 |
35,323,003 |
|
|
|
|
|
|
Total Current Assets
|
6,090,966,277 |
2,548,006,478 |
2,429,145,001 |
|
|
|
|
|
|
Non-current Assets |
|
|
|
|
Investment in Subsidiaries |
8,616,382,516 |
9,061,533,338 |
9,881,383,383 |
|
Investment in Associated |
254,400,000 |
254,400,000 |
254,400,000 |
|
Investment Property |
514,302,431 |
768,087,158 |
- |
|
Fixed Assets |
7,976,259,776 |
7,959,944,909 |
8,276,439,879 |
|
Intangible Assets |
3,441,837 |
10,778,461 |
- |
|
Other Non-current Assets |
118,455,503 |
140,512,310 |
96,707,597 |
|
Total Non-current Assets |
17,483,242,063 |
18,195,256,176 |
18,508,930,859 |
|
Total Assets |
23,574,208,340 |
20,743,262,654 |
20,938,075,860 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institutions |
3,964,156,656 |
883,962,485 |
978,013,309 |
|
Trade Accounts & Other Payable |
|
|
|
|
Related company |
80,517,332 |
72,665,227 |
182,485,526 |
|
Non related company |
245,934,864 |
445,054,544 |
398,551,117 |
|
Total Trade Accounts & Other
Payable |
326,452,196 |
517,719,771 |
581,036,643 |
|
Advance Receipts for
Purchase from Related company |
574,766,355 |
373,956,776 |
121,495,327 |
|
Short-term Loan from Related Company
|
258,660,353 |
8,000,000 |
569,500,000 |
|
Current Portion of Hire-purchase Payable |
55,854,730 |
99,296,005 |
113,478,020 |
|
Current Portion of Long-term Loans |
597,357,143 |
397,357,143 |
715,947,831 |
|
Current Portion of Long-term
Loans Currency |
2,992,518,134 |
- |
- |
|
Accrued Income Tax |
81,488,997 |
23,145,385 |
16,738,662 |
|
Other Current Liabilities |
76,941,794 |
85,347,655 |
69,753,736 |
|
|
|
|
|
|
Total Current Liabilities |
8,928,196,358 |
2,388,785,220 |
3,165,963,528 |
|
|
|
|
|
|
Purchase from Related
company, net |
58,519,624 |
96,669,194 |
175,859,422 |
|
Long-term Loans, net |
1,195,387,671 |
1,792,744,814 |
2,190,094,716 |
|
Long-term Loans Currency,
net |
3,002,139,278 |
5,958,667,665 |
2,953,726,842 |
|
Provision for Employee
Benefits |
25,175,448 |
22,673,119 |
18,686,909 |
|
Retention of Electricity
and Other Deposits |
19,463,330 |
23,709,320 |
- |
|
Total Liabilities |
13,228,881,709 |
10,283,249,332 |
8,504,331,417 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, &
issued share capital 1,000,000,000 shares in
2013; 993,400,000 shares
in 2012 & 2011 |
10,000,000,000 |
9,934,000,000 |
9,934,000,000 |
|
|
|
|
|
|
Capital Paid |
9,354,039,200 |
9,354,039,200 |
9,354,039,200 |
|
Retained Earning Appropriated for Statutory
Reserve |
533,439,099 |
440,720,073 |
399,444,573 |
|
Unappropriated |
453,026,494 |
796,023,839 |
2,811,030,460 |
|
Other Components of Equity |
4,821,838 |
[130,769,790] |
[130,769,790] |
|
Total Shareholders' Equity |
10,345,326,631 |
10,460,013,322 |
12,433,744,443 |
|
Total Liabilities &
Shareholders' Equity |
23,574,208,340 |
20,743,262,654 |
20,938,075,860 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Revenue from Sale of
Electricity Water and Steam |
6,538,386,514 |
6,074,474,589 |
6,178,079,044 |
|
Services Income |
79,988,824 |
48,245,717 |
- |
|
Gain on Exchange Rate |
- |
35,098,137 |
- |
|
Dividend |
1,268,034,809 |
626,624,863 |
393,155,052 |
|
Interest |
115,321,397 |
100,936,583 |
- |
|
Other Income |
63,818,545 |
23,279,622 |
59,700,731 |
|
Total Revenues |
8,065,550,089 |
6,908,659,511 |
6,630,934,827 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Sale
of Electricity Water and
Steam |
5,008,641,917 |
5,105,812,213 |
5,163,253,554 |
|
Cost of Services |
49,019,546 |
51,124,347 |
- |
|
Administrative Expenses |
367,582,513 |
332,256,712 |
258,767,836 |
|
Loss on Exchange Rate |
22,092,959 |
- |
19,988,637 |
|
Allowance for Impairment
of Investments in
Subsidiaries |
- |
- |
187,433,062 |
|
Total Expenses |
5,447,336,935 |
5,489,193,272 |
5,629,443,089 |
|
Profit before Financial
Expenses & Income Tax |
2,618,213,154 |
1,419,466,239 |
1,001,491,738 |
|
Financial Expenses |
[633,917,082] |
[544,479,860] |
[421,060,211] |
|
Profit before Income Tax |
1,984,296,072 |
874,986,379 |
580,431,527 |
|
Income Tax |
[129,915,571] |
[47,195,423] |
[42,987,312] |
|
Net Profit / [Loss] |
1,854,380,501 |
827,790,956 |
537,444,215 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.68 |
1.07 |
0.77 |
|
QUICK RATIO |
TIMES |
0.63 |
0.82 |
0.57 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.83 |
0.77 |
0.75 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.28 |
0.30 |
0.30 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
30.90 |
38.67 |
41.87 |
|
INVENTORY TURNOVER |
TIMES |
11.81 |
9.44 |
8.72 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
45.26 |
46.62 |
18.03 |
|
RECEIVABLES TURNOVER |
TIMES |
8.06 |
7.83 |
20.24 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
17.75 |
31.50 |
28.17 |
|
CASH CONVERSION CYCLE |
DAYS |
58.42 |
53.79 |
31.72 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
76.42 |
84.23 |
83.57 |
|
SELLING & ADMINISTRATION |
% |
5.55 |
5.43 |
4.19 |
|
INTEREST |
% |
9.58 |
8.89 |
6.82 |
|
GROSS PROFIT MARGIN |
% |
45.45 |
28.61 |
23.76 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
39.56 |
23.18 |
16.21 |
|
NET PROFIT MARGIN |
% |
28.02 |
13.52 |
8.70 |
|
RETURN ON EQUITY |
% |
17.92 |
7.91 |
4.32 |
|
RETURN ON ASSET |
% |
7.87 |
3.99 |
2.57 |
|
EARNING PER SHARE |
BAHT |
1.98 |
0.88 |
0.57 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.56 |
0.50 |
0.41 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.28 |
0.98 |
0.68 |
|
TIME INTEREST EARNED |
TIMES |
4.13 |
2.61 |
2.38 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
8.10 |
(0.90) |
|
|
OPERATING PROFIT |
% |
84.45 |
41.74 |
|
|
NET PROFIT |
% |
124.02 |
54.02 |
|
|
FIXED ASSETS |
% |
0.20 |
(3.82) |
|
|
TOTAL ASSETS |
% |
13.65 |
(0.93) |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 8.1%. Turnover has increased from THB
6,122,720,306.00 in 2012 to THB 6,618,375,338.00 in 2013. While net profit has
increased from THB 827,790,956.00 in 2012 to THB 1,854,380,501.00 in 2013. And
total assets has increased from THB 20,743,262,654.00 in 2012 to THB
23,574,208,340.00 in 2013.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
45.45 |
Satisfactory |
Industrial Average |
57.23 |
|
Net Profit Margin |
28.02 |
Impressive |
Industrial Average |
8.16 |
|
Return on Assets |
7.87 |
Impressive |
Industrial Average |
3.75 |
|
Return on Equity |
17.92 |
Impressive |
Industrial Average |
7.66 |
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 45.45%. 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 28.02%,
higher figure when compared with those of its average competitors in the same
industry, indicated that business was an efficient operator in a dominant position within its industry.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. Return on Assets ratio is
7.87%, 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 17.92%, 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 Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.68 |
Risky |
Industrial Average |
1.19 |
|
Quick Ratio |
0.63 |
|
|
|
|
Cash Conversion Cycle |
58.42 |
|
|
|
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 0.68 times in 2013, decreased from 1.07 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 0.63 times in 2013,
decreased from 0.82 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 59 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.56 |
Impressive |
Industrial Average |
0.69 |
|
Debt to Equity Ratio |
1.28 |
Acceptable |
Industrial Average |
1.52 |
|
Times Interest Earned |
4.13 |
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 4.14 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 0.56 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 |
0.83 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.28 |
Deteriorated |
Industrial Average |
0.61 |
|
Inventory Conversion Period |
30.90 |
|
|
|
|
Inventory Turnover |
11.81 |
Impressive |
Industrial Average |
6.03 |
|
Receivables Conversion Period |
45.26 |
|
|
|
|
Receivables Turnover |
8.06 |
Impressive |
Industrial Average |
5.59 |
|
Payables Conversion Period |
17.75 |
|
|
|
The company's Account Receivable Ratio is calculated as 8.06 and 7.83 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
increased from 2012. This would suggest the company had good performance 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 39 days at the
end of 2012 to 31 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 9.44 times in year 2012 to 11.81
times in year 2013.
The company's Total Asset Turnover is calculated as 0.28 times and 0.3
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.60.14 |
|
UK Pound |
1 |
Rs.102.22 |
|
Euro |
1 |
Rs.81.02 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.