MIRA
INFORM REPORT
|
Report Date : |
30.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
SAFETY SHOES COMPANY LIMITED |
|
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Registered Office : |
199/8 Moo 3, |
|
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Country : |
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Financials (as on) : |
31.12.2013 |
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Year of Establishment : |
1983 |
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Com. Reg. No.: |
0115526000418 |
|
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|
Legal Form : |
Private Limited Company |
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|
Line of Business : |
Safety
Shoes And Related
Equipment Manufacturer, Distributor And Exporter |
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|
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No of Employees : |
650 |
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 |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
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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
SAFETY SHOES COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 199/8
MOO 3, PANTHONG-BANBUENG ROAD,
BANBUENG, CHONBURI
20170, THAILAND
TELEPHONE : [66] 38
443-988
FAX :
[66] 38
443-987
E-MAIL
ADDRESS : sales@pangoloin.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1983
REGISTRATION
NO. : 0115526000418 [Former : SOR
POR. 350]
TAX
ID NO. : 3271008133
CAPITAL REGISTERED : BHT. 80,000,000
CAPITAL PAID-UP : BHT.
80,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PUVASITH WONGCHAROENSIN, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 650
LINES
OF BUSINESS : SAFETY SHOES AND RELATED
EQUIPMENT
MANUFACTURER,
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 established
on June 1, 1983 as
a private limited
company under the
name style SAFETY
SHOES COMPANY LIMITED
by Thai groups,
the Wongcharoensin family,
in order to
manufacture safety shoes
and related equipment
to both domestic
and oversea markets.
It currently employs
approximately 650 staff.
The major
shareholder is Charoensin
Holding Co., Ltd., which is
a member of
Charoensin group of
companies.
The
subject’s registered address
is 199/8 Moo
3, Panthong-Banbueng Rd.,
Banbueng, Chonburi 20170,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Rattanachai Wongcharoensin |
[x] |
Thai |
64 |
|
Mr. Manit Wongcharoensin |
|
Thai |
67 |
|
Mr. Viwat Wongcharoensin |
|
Thai |
43 |
|
Mr. Kitichai Wongcharoensin |
|
Thai |
38 |
|
Mr. Puvasith [Teerachai] Wongcharoensin * |
|
Thai |
40 |
Note:
* “Mr. Puvasith” changed his
name from “Mr. Teerachai” in
2010.
AUTHORIZED PERSON
Two of the
above directors except for
the director [x]
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Puvasith Wongcharoensin is
the Managing Director.
He is Thai
nationality with the
age of 40
years old.
Mrs. U-sa Wongcharoensin is
the Executive Director
[Finance & Accounting].
She is Thai
nationality.
Mr. Liyu Lianti Kwang
is the Exports
Manager.
He is Chinese
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
wide range of
safety products as
the followings:
- Foot Protection
-
Safety
shoes, hospitality shoes,
casual, rubber boots,
PVC boots,
electrician
boots, canvass and
insole
- Heat
Protection
-
Safety
helmets, chin strap,
ratchet suspension, welding
helmet
- Eye
and Face Protection
-
Eye shield, goggle,
spectacle [glasses] pango
vision, welding shield,
face shields [browguard],
face shields [visor bracket], face
shields [visor]
- Respiratory
Protection
-
Chemical
hood, disposable mark,
filter marks, sundstrom,
disposable mark pangocare
- Hearing
Protection
-
Ear
plugs-foam, earmuff
- Hand
and Arm Protection
-
Chemical
resistant gloves, heat
resistance gloves, cut
resistance gloves,
medical rubber gloves,
welding gloves, electrician
gloves, general purpose
gloves and sleeve
- Body
Protection
-
Apron,
life jacket, chemical
protective clothing, welding
suit,
other clothing and
back support
- Fall
Protection
-
Harness,
lanyards, carbines, anchor
point, safety rope
- Safety
Sign & Traffic
-
safety
sign, safety record
sign, safety sign
equipment, traffic sign,
traffic equipment and
floor stand signs
- Workplace
Safety
-
Emergency
shower & eyewashes,
anti-fire equipment, flag,
food industry equipment
and sundry.
MAJOR BRANDS
“PANGOLIN” and “GOLDEN
ANCHOR SHOES”
PRODUCTION CAPACITY
Safety Shoes
: 900,000 pairs
per annum
Safety Helmets :
500,000 sets per
annum
PURCHASE
Raw materials and machinery
are purchased from
suppliers both domestic
and overseas, mainly
in U.S.A., Germany,
Republic of China,
Taiwan and Japan.
MAJOR SUPPLIER
C.P.L. Group Public Company Limited : Thailand
SALES
80% of the
products is sold
locally by wholesale
to dealers and
end-users, the remaining 20%
is exported to
Singapore, Hong Kong,
Malaysia, Africa, Republic
of China, Vietnam,
Myanmar, Australia, Japan,
Europe and Middle
East countries.
MAJOR CUSTOMER
Pangolin Safety Products
Co., Ltd. : Thailand
RELATED AND AFFILIATED COMPANY
Pangolin Safety Products
Co., Ltd
Business Type :
Manufacturer and distributor of
safety products
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
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
L/C at sight
or T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject employs approximately 650
staff.
LOCATION DETAILS
The premise
is owned for
administrative office and
factory at the
heading address. Premise is
located in provincial.
Branches and showrooms:
The
subject currently has
13 branches, located
in Bangkok and
provincial as follows:
-
318/10-22
Sukhumvit 22 Rd.,
Klongtoey, Bangkok 10110.
-
111/33
Moo 6, Rama
2 Rd., Samaedam,
Bangkhunthien, Bangkok 10150.
-
267/6-7
Sukhumvit Rd., Maptaphut,
Muang, Rayong 21150.
-
133/29-30
Moo 7, Sukhumvit
Rd., Bangpoomai, Muang,
Samutprakarn 10280
-
54/109
Moo 13, Phaholyothin
Rd., Klongnueng, Klongluang,
Pathumthani 12120.
-
90/62
Moo 6, Phaolyothin
Rd., Chiangraknoi, Bangpa-in,
Ayudhya 13160.
-
99/9
Moo 3, By-pas
Rd., Nongmaidaeng, Muang,
Chonburi 20000.
-
333/101-102
Moo 3, Bor-win,
Sriracha, Chonburi 20110.
-
11/20-21
Moo 1, Bangna-Trad
Rd., Bangchalong, Bangplee,
Samutprakarn 10540.
-
235 Moo 10,
Thatoom, Srimahaphote, Prachinburi
25140.
-
5/2-3
Moo 8, Petchkasem
Rd., Omyai, Sampran,
Nakornpathom 73160.
-
99/419-421
Moo 9, Bangna-Trad
Rd., Bangchalong, Bangplee,
Samutprakarn 10540.
-
198/22 Moo
3, Panthong-Banbueng Rd.,
Banbueng, Banpong, Chonburi 20170.
COMMENT
The subject’s operating performance
in 2013 was
satisfactory with an
increase in both
sales revenues and
net profit comparing
to the same period
of the previous
year. This was mainly
due to an
increase in demand
of the products
from both local and overseas
markets along with effective market
expansion in the
past year. Generally, the subject’s
business is promising
and remains profitable.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 10,000,000 divided into 1,000 shares of Bht. 10,000 each.
The
capital was increased
later as following:
Bht. 20,000,000
on September 9,
1994
Bht. 50,000,000
on December 12,
2000
Bht. 80,000,000
on October 2,
2002
The
latest registered capital
was increased to Bht. 80,000,000 divided
into 8,000,000 shares
of Bht. 10
each with fully
paid.
MAIN SHAREHOLDERS
[as
at April 30,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Charoensin Holding Co.,
Ltd. Nationality: Thai Address : 318/10-22
Sukhumvit 22 Rd.,
Klongtoey, Bangkok |
2,000,000 |
25.00 |
|
Mr. Isara Wongcharoensin Nationality: Thai Address :
33/318 Moo 1,
Bangkaew, Bangplee,
Samutprakarn |
1,220,000 |
15.25 |
|
Mr. Viwat Wongcharoensin Nationality: Thai Address : 933
Moo 7, Taibanmai,
Muang,
Samutprakarn |
1,150,000 |
14.38 |
|
Mr. Suwatchai Wongcharoensin Nationality: Thai Address : 7/140
Moo 7, Bangmuang,
Muang,
Samutprakarn |
996,000 |
12.45 |
|
Mr. Puvasith Wongcharoensin Nationality: Thai Address : 233/6
Moo 6, Srinakarin
Road, Bangmuang, Muang,
Samutprakarn |
975,000 |
12.19 |
|
Mrs. Payao Wongcharoensin Nationality: Thai Address : 33/318
Moo 1, Bangkaew,
Bangplee,
Samutprakarn |
280,000 |
3.50 |
|
Other Shareholders |
1,379,000 |
17.23 |
Total Shareholders : 15
Share Structure
[as at April
30, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
15 |
8,000,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
15 |
8,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Vichit Luechaiprasit No.
3563
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents
|
996,522.07 |
869,849.67 |
1,340,836.50 |
|
Trade Accounts & Other Receivable |
145,291,157.55 |
121,797,388.94 |
131,846,877.80 |
|
Inventories |
31,413,775.88 |
48,092,063.26 |
101,979,644.87 |
|
Other Current Assets
|
111,905.61 |
82,127.16 |
99,945.43 |
|
|
|
|
|
|
Total Current Assets
|
177,813,361.11 |
170,841,429.03 |
235,267,304.60 |
|
Cash at Bank pledged as
a Collateral |
2,301,298.06 |
2,258,438.14 |
2,215,404.11 |
|
Investment in Subsidiary |
4,999,960.00 |
4,999,960.00 |
4,999,960.00 |
|
Fixed Assets |
212,324,889.69 |
201,086,817.77 |
190,157,276.60 |
|
Leasehold Right |
1,360,163.32 |
1,589,942.92 |
1,820,352.05 |
|
Other Non-current Assets |
469,881.56 |
473,996.56 |
622,796.56 |
|
Total Assets |
399,269,553.74 |
381,250,584.42 |
435,083,093.92 |
LIABILITIES & SHAREHOLDERS' EQUITY
[BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial
Institution |
99,820,056.45 |
64,977,196.42 |
77,000,893.09 |
|
Trade Account & Other
Payable |
53,317,512.27 |
43,469,401.42 |
44,128,282.46 |
|
Current Portion of
Long-term Loan |
38,406,893.93 |
61,261,952.19 |
97,414,214.63 |
|
Current Portion of
Hire-purchase Contract Liabilities |
4,185,036.00 |
4,666,353.52 |
4,106,641.99 |
|
Accrued Income Tax |
4,727,092.42 |
2,527,259.84 |
1,616,316.88 |
|
Accrued Interest |
2,732,691.44 |
4,231,702.57 |
3,845,259.01 |
|
Other Current Liabilities |
206,152.95 |
1,280,509.77 |
1,527,024.42 |
|
|
|
|
|
|
Total Current Liabilities |
203,395,435.46 |
182,414,375.73 |
229,638,632.48 |
|
Long-term Loan - Net of
Current Portion |
71,832,242.73 |
98,479,051.32 |
119,967,216.07 |
|
Financial Lease Contract
Liabilities - Net of
Current Portion |
2,913,946.10 |
6,031,313.00 |
1,354,688.71 |
|
Other Non-current Liabilities |
1,251,500.00 |
251,500.00 |
620,500.00 |
|
Total Liabilities |
279,393,124.29 |
287,176,240.05 |
351,581,037.26 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10 par
value authorized, issued
and fully paid
share capital
8,000,000 shares |
80,000,000.00 |
80,000,000.00 |
80,000,000.00 |
|
|
|
|
|
|
Capital Paid |
80,000,000.00 |
80,000,000.00 |
80,000,000.00 |
|
Retained Earning
Appropriated for - Statutory Reserve |
1,963,463.52 |
1,963,463.52 |
1,963,463.52 |
|
Unappropriated [Deficit] |
37,912,965.93 |
12,110,880.85 |
1,538,593.14 |
|
Total Shareholders' Equity |
119,876,429.45 |
94,074,344.37 |
83,502,056.66 |
|
Total Liabilities &
Shareholders' Equity |
399,269,553.74 |
381,250,584.42 |
435,083,093.92 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
361,523,066.80 |
337,838,523.22 |
410,423,221.82 |
|
Other Income Rental & Service
Income |
11,082,538.33 |
12,081,552.60 |
4,213,038.98 |
|
Gain on
Disposal of Land, Building & Equipment |
560,815.06 |
850,279.57 |
1,910,634.64 |
|
Gain on
Exchange Rate |
- |
534,012.58 |
- |
|
Others |
1,221,757.55 |
921,297.60 |
1,283,475.25 |
|
Total Revenues |
374,388,177.74 |
352,225,665.57 |
417,803,370.69 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
283,851,956.55 |
280,470,857.71 |
324,787,524.98 |
|
Selling Expenses |
4,385,220.08 |
6,830,559.94 |
21,637,151.41 |
|
Administrative Expenses |
41,068,604.17 |
40,241,541.91 |
52,215,312.52 |
|
Other Expenses |
4,087,919.95 |
- |
1,610,624.29 |
|
Total Expenses |
333,393,700.75 |
327,542,959.56 |
400,250,613.20 |
|
|
|
|
|
|
Profit / Loss] before Financial
Cost & Income Tax |
40,994,476.99 |
24,682,706.01 |
17,579,757.49 |
|
Financial Cost |
[8,353,311.09] |
[10,547,099.57] |
[8,043,785.71] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax
|
32,641,165.90 |
14,135,606.44 |
9,535,971.78 |
|
Income Tax |
[6,839,080.82] |
[3,563,318.73] |
[3,024,526.71] |
|
Net Profit / [Loss] |
25,802,085.08 |
10,572,287.71 |
6,511,445.07 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.87 |
0.94 |
1.02 |
|
QUICK RATIO |
TIMES |
0.72 |
0.67 |
0.58 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.75 |
1.74 |
2.18 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.93 |
0.92 |
0.95 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
40.39 |
62.59 |
114.61 |
|
INVENTORY TURNOVER |
TIMES |
9.04 |
5.83 |
3.18 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
142.33 |
127.05 |
116.06 |
|
RECEIVABLES TURNOVER |
TIMES |
2.56 |
2.87 |
3.14 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
68.56 |
56.57 |
49.59 |
|
CASH CONVERSION CYCLE |
DAYS |
114.16 |
133.06 |
181.08 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
76.18 |
80.15 |
78.33 |
|
SELLING & ADMINISTRATION |
% |
12.20 |
13.45 |
17.81 |
|
INTEREST |
% |
2.24 |
3.01 |
1.94 |
|
GROSS PROFIT MARGIN |
% |
24.30 |
20.51 |
22.43 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
11.00 |
7.05 |
4.23 |
|
NET PROFIT MARGIN |
% |
6.92 |
3.02 |
1.57 |
|
RETURN ON EQUITY |
% |
21.52 |
11.24 |
7.80 |
|
RETURN ON ASSET |
% |
6.46 |
2.77 |
1.50 |
|
EARNING PER SHARE |
BAHT |
3.23 |
1.32 |
0.81 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.70 |
0.75 |
0.81 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.33 |
3.05 |
4.21 |
|
TIME INTEREST EARNED |
TIMES |
4.91 |
2.34 |
2.18 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
6.48 |
(15.61) |
|
|
OPERATING PROFIT |
% |
66.09 |
40.62 |
|
|
NET PROFIT |
% |
144.05 |
62.36 |
|
|
FIXED ASSETS |
% |
5.59 |
5.75 |
|
|
TOTAL ASSETS |
% |
4.73 |
(12.37) |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 6.48%. Turnover has increased from THB
PROFITABILITY :
EXCELLENT
PROFITABILITY RATIO
|
Gross Profit Margin |
24.30 |
Impressive |
Industrial
Average |
4.39 |
|
Net Profit Margin |
6.92 |
Impressive |
Industrial
Average |
(3.33) |
|
Return on Assets |
6.46 |
Impressive |
Industrial
Average |
(5.34) |
|
Return on Equity |
21.52 |
Impressive |
Industrial
Average |
(108.31) |
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 24.3%. 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 ratio is 6.92%, 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
6.46%, 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 21.52%, 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 |
0.87 |
Risky |
Industrial
Average |
0.90 |
|
Quick Ratio |
0.72 |
|
|
|
|
Cash Conversion Cycle |
114.16 |
|
|
|
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 0.87 times in 2013, decrease from 0.94 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 0.72 times in 2013,
increase from 0.67 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 115 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.70 |
Impressive |
Industrial
Average |
0.97 |
|
Debt to Equity Ratio |
2.33 |
Impressive |
Industrial
Average |
24.44 |
|
Times Interest Earned |
4.91 |
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 4.91 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 0.7 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 |
1.75 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.93 |
Acceptable |
Industrial
Average |
1.61 |
|
Inventory Conversion Period |
40.39 |
|
|
|
|
Inventory Turnover |
9.04 |
Impressive |
Industrial
Average |
3.78 |
|
Receivables Conversion Period |
142.33 |
|
|
|
|
Receivables Turnover |
2.56 |
Acceptable |
Industrial
Average |
4.66 |
|
Payables Conversion Period |
68.56 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.56 and
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 63 days at the
end of 2012 to 40 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 5.83 times in year 2012 to 9.04 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.93 times and 0.92
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.60.10 |
|
|
1 |
Rs.102.04 |
|
Euro |
1 |
Rs.80.74 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
SHG |
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.