MIRA INFORM REPORT
|
Report Date : |
19.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
LPN PLATE MILL PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
14th Floor, LPN Building 1, 333 Vibhavadee-Rangsit Road, Jomphol, Jatujak, Bangkok 10900 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
1990 |
|
|
|
|
Com. Reg. No.: |
0107539000014 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor &
Exporter of Hot Rolled Coils
and Hot Rolled
Plate |
|
|
|
|
No. of Employees : |
460 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow |
|
Litigation : |
Exist |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately 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
LPN PLATE MILL
PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 199/9
MOO 4, SUKSAWAD
ROAD,
T.
PAKKLONGBANGPLAKOT, A. PHRASAMUTJAEDI,
SAMUTPRAKARN 10290,
THAILAND
TELEPHONE : [66]
2815-6400-9
FAX : [66]
2815-6427-9
E-MAIL ADDRESS : info@lpnpm.co.th
REGISTRATION ADDRESS : 14th FLOOR,
LPN BUILDING 1,
333 VIBHAVADEE-RANGSIT ROAD,
JOMPHOL,
JATUJAK, BANGKOK
10900, THAILAND
ESTABLISHED : 1990
REGISTRATION NO. : 0107539000014 [Former
: BOR. MOR. JOR. 502]
TAX ID NO. : 3101865486
CAPITAL REGISTERED : BHT. 2,523,192,890
CAPITAL PAID-UP BHT. 2,523,192,890
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS PUBLIC LIMITED
COMPANY
EXECUTIVE : DR.
PIPAT PRIDAVIPHAT, THAI
PRESIDENT AND CHIEF EXECUTIVE
OFFICER
NO. OF STAFF : 460
LINES OF BUSINESS : HOT
ROLLED COILS AND
HOT ROLLED PLATE
MANUFACTURER, DISTRIBUTOR
& EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH LOW PERFORMANCE
HISTORY
The subject was
established on August
6, 1990 as
a private limited
company under the
name style “LPN
Plate Mill Co.,
Ltd.”, by Thai
groups, in order
to manufacture hot-rolled
coils and hot
rolled plates with
BOI support for
local market. On
January 3, 1996,
the subject’s status
was changed to
a public limited
company under the
name LPN PLATE MILL
PUBLIC COMPANY LIMITED.
It currently employs
approximately 460 staff.
Subject achieved the
standard ISO 9002 certificate
in 1998, ISO 14001
and ISO 18001 certificates
in 2004.
LPN Plate Mill
Public Co., Ltd.
is one of
LPN Group of
Companies which was
initially founded by Mr.
Banjerd Pridaviphat, and
his brother, Dr.
Pipat Pridaviphat. They
have participated in
the steel industry
for over 26
years, beginning as
a steel trader
“Lao Peng Nguan
Shop”, then in
1979 establishing a
registered company named
“Thai Central Steel
Co., Ltd.” to
import and distribute
steel and various
steel products.
Industrial Standards
ASTM (American Society for
Testing and Materials)
JIS (Japanese Industrial Standards
Committee)
EN (Euronorm Standard)
ISO (International
Organization for Standardization)
AS (Australian Standard)
ABS (American Bureau of Shipping)
Lloyd’s (Lloyd’s Register)
The subject’s registered
address is 14th Floor,
LPN Building 1, 333
Vibhavadee-Rangsit Road, Jomphol,
Jatujak, Bangkok 10900,
while the company’s
current operation address
is 199/9 Moo
4, Suksawad Road,
T. Pakklongbangplakot, A.
Phrasamutjaedi, Samutprakarn 10290.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Suneth Vuthisak |
|
Thai |
50 |
|
Mr. Naruemit Pridaviphat |
[x] |
Thai |
39 |
|
Mr. Thitikorn Subboonrod |
[-] |
Thai |
47 |
|
Gen. Chettha Tanajaro |
|
Thai |
76 |
|
Mr. Pripach Limprapruekkul |
|
Thai |
60 |
|
Mr. Chatchawal Pridaviphat |
[x] |
Thai |
37 |
|
Mr. Roy Chowdhury Subhajit |
|
Indian |
49 |
|
Mr. Surasak Jaruwansathit |
|
Thai |
62 |
|
Mr. Sanpong Pridaviphat |
[-] |
Thai |
33 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can jointly sign
with anyone of
the mentioned directors
[-] on behalf
of the subject
with company’s affixed.
MANAGEMENT
Dr. Pipat Pridaviphat
is the President
& Chief Executive
Officer.
He is Thai
nationality with the
age of 62
years old.
Mr. Naruemit Preedaviphat is
the Vice President.
He is Thai
nationality with the
age of 39
years old.
Mr. Suneth Vuthisak
is the Managing
Director.
He is Thai
nationality with the
age of 50
years old.
Mr. Thitikorn Subboonrod
is the General
Manager & Operation
Manager.
He is Thai
nationality with the
age of 47
years old.
Mr. Pongsak Soonthornvanich is
the Factory Manager.
He is Thai
nationality.
Ms. Kayasith Vijittranon
is the Marketing
& Sales Director.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
of hot rolled
coils with 4 - 8
ft. in width
and 3 - 25 mm. of
thickness and hot
rolled steel plates
with the widest
width in Asia.
The widths available
are from 3 - 10 ft.
and thicknesses from 6
- 150 mm. The
products are supplied
to construction, pipe,
automobile, ship building
and other downstream industries.
The High Quality Products
for a Varied
Demand:
High-Strength Low-Alloy Nb-V
Steel of Structural
Quality Specialty steel to
support structures that
require high strength
such as building
structure and bridge structures.
Structural Steel Plate For Use in Ship Construction (Ordinary Strength)
Structural steel plates
especially for ocean
vessel construction and
other offshore works.
Carbon Steel for Pressure Vessel Quality, for moderate and low
temperature service Steel that
can sustain high
pressure both at
moderate and low
temperatures, suitable for
making pressure vessels.
Hot rolled coils
with smooth plain
surface throughout the
length
PRODUCTION CAPACITY
400,000 tons per
annum
BRAND NAME
“LPN”
IMPORT [COUNTRIES]
Some of raw
materials and steel
bars are imported
from Germany, Singapore,
India, Hong Kong,
Brazil, Australia, Mexico
and Ukraine, whereas
the majority of
materials is purchased
from local suppliers.
SALES [LOCAL]
95% of its
products is sold
locally to manufacturers, wholesalers
and end-users.
EXPORT [COUNTRIES]
5% of its products is
exported to Malaysia,
Australia, Bangladesh, Vietnam,
India, United Arab
Emirates, Republic of China,
Hong Kong, Laos,
Brunei and Indonesia.
SUBSIDIARIES &
AFFILIATED COMPANIES
LPN Development Public
Co., Ltd.
Business Type : Land
development & property
business
Lao Peng Nguan
Corporation Ltd.
Business Type : Distributor
of steel products
Thanapat Property Development
Public Company Limited
Business Type : Property
business
LITIGATIONS
Bankruptcy and Receivership
On August 19,
2002, the Central
Bankruptcy Court has
ordered LPN Plate
Mill Public Co.,
Ltd. [Debtor] to enter
into business rehabilitation according
to the lawsuit
red case no. 1321/2545.
On August 6, 2003, the
Court approved the
business rehabilitation plan
and appointed LPN Planner Co., Ltd.
to be the
Plan Administrator. As a
result of such Court
order, the power
and duties of
the Planner shall
be vested in the
Plan Administrator according
to Article 90/59
of Bankruptcy Act
B.E. 2483.
On September 29,
2008, the court
has approved the
plan correction according
to Article 90/63
of Bankruptcy Act B.E. 2483.
Others
The subject has
several litigations in
relation to its normal
course of business
operation, but the
management believes that
it would not have significant
affect on the company’s business.
As of December
31, 2012, the company had been filed by the creditors of the
various entities. The details were as the followings:
As at July 4, 2012, the Company was filed in the District
Court for non-payment
bills which payable by cheque at the amount 9.77 million baht. However, the Company recorded a provision of such in its financial statements. The
case is currently in the process of judicial proceedings.
As at September 24, 2012
and November 23, 2012 the Company was filed in the
District Court and the
Civil Court for non-payment bills which payable by cheque at the
amount 8.16 million baht. However, the Company recorded a provision of such in its financial statements. The case is currently
in the process of judicial proceedings.
As at September 24, 2012
and November 23, 2012 the Company was filed in the
District Court and the
Civil Court for
non-payment bills which payable by cheque at the amount 7.31 million baht. However, the Company recorded a provision of such in
its financial statements. The case is currently
in the process of judicial proceedings.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by L/C at
sight or on
the credit term
of 120 days
& T/T.
Exports are against
L/C at sight or
on the credit
term of 120
days & T/T.
BANKING
The Siam Commercial
Bank Public Co.,
Ltd.
[Head Office
: 9 Ratchadapisek
Rd., Ladyao, Jatujak,
Bangkok 10900]
Krung Thai Bank
Public Co., Ltd.
[Head Office
: 35 Sukhumvit
Rd., Klongtoeynua, Watana,
Bangkok 10110]
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject employs
approximately 460 staff.
LOCATION DETAILS
The premise is
owned for operating
its headquarters and
factory on the
area of 176,000
square meters at
the heading address.
Premise is located
in provincial, on
the outskirts of
Bangkok.
Its registered address
was relocated from
29th Floor to 14th Floor,
LPN Building 1, 333
Vibhavadee-Rangsit Rd., Jomphol,
Jatujak, Bangkok, in
2014.
COMMENT
The company is the
leading steel manufacture
in the region
especially hot rolled
steel plate and
hot rolled coils
products.
The
company focuses on
the development of specialty
steel products that can perfectly
fulfill varied demands in
each area of
industry such as construction industry, ship building industry, fabrication
industry and etc.
These products are
manufactured under rigorous
quality control of its laboratory which
has been approved to
the satisfaction of
various international standards
such as ASTM, JIS, BSEN, DIN,
ISO, AS, API,
ABS and Lloyd's.
FINANCIAL INFORMATION
The capital was
registered at Bht. 1,000,000 divided
into 10,000 shares of
Bht. 100 each.
The capital was
increased / decreased later as
followings:
Bht. 800 million
in March 22,
1991
Bht. 1,260 million
in October 25,
1995
Bht. 3,420 million
in January, 1996
Bht. 3,714 million
in 1996
Bht. 5,005 million
in 1997
Bht. 3,367,220,000 in 2008
[decreased]
On April 22, 2010, the capital
was decreased to Bht.
2,523,192,890 divided into
252,319,289 shares of
Bht. 10 each
with fully paid.
MAIN SHAREHOLDERS
[as at July
31, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
LPN Planner Co.,
Ltd. Nationality: Thai Address : 62/19
Soi Pramote, Suriwong
Rd.,
Suriyawongse, Bangrak, Bangkok
|
252,319,014 |
100.00 |
|
Others |
275 |
- |
Total Shareholders : 32
Share Structure [as
at July 31,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
31 |
252,319,288 |
100.00 |
|
Foreign - Singaporean |
1 |
1 |
- |
|
Total |
32 |
252,319,289 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Ms. Wimolsri Jongudomsombat No.
3899
Note:
The 2013 financial
statement has not
yet been declared to
public by Commercial Registration
Department during investigation. As
soon as it
is available we
will arrange to
send it without
delay.
BALANCE
SHEET [BAHT]
The latest financial
figures published for
December 31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
82,938,587 |
5,392,412 |
1,689,685 |
|
Trade Accounts &
Notes Receivable - Related
Company |
792,840 |
597,124 |
2,621,070 |
|
- Other
Company |
53,241,527 |
76,990,109 |
420,611,312 |
|
Inventories |
167,880,525 |
302,198,267 |
452,972,125 |
|
Advance Payment for
Goods & Deferred Interest |
- |
32,224,036 |
128,785,211 |
|
Other Current Assets
|
5,950,645 |
28,980,833 |
21,097,506 |
|
|
|
|
|
|
Total Current Assets
|
310,804,124 |
446,382,781 |
1,027,776,909 |
|
Cash at Bank
pledged as a
Collateral |
7,331,677 |
34,354,454 |
46,360,574 |
|
Investment in Securities
available for Sale |
14,944,500 |
10,591,500 |
14,554,500 |
|
Fixed Assets |
3,092,967,450 |
3,276,428,625 |
2,926,187,002 |
|
Non-operating Land |
265,929,942 |
265,929,942 |
265,929,942 |
|
Other Non-Current Assets |
8,204,468 |
19,823,791 |
22,099,815 |
|
Total Assets |
3,700,182,161 |
4,053,511,093 |
4,302,908,742 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Overdue Debts Paid |
169,524,879 |
189,537,499 |
- |
|
Trade Accounts &
Notes Payable - Related
Companies |
78,854,596 |
18,470,438 |
183,332,067 |
|
- Other
Companies |
659,032,751 |
704,477,593 |
630,016,040 |
|
Liabilities under Debt
Restructuring Plan |
3,829,216,409 |
3,613,277,401 |
794,175,092 |
|
Loan from Related Person |
44,123,000 |
57,770,000 |
39,000,000 |
|
Loan from Other Company |
28,350,000 |
- |
- |
|
Other Payable - Related Company |
- |
- |
4,059,450 |
|
Accrued Expenses |
28,110,962 |
28,958,792 |
26,423,853 |
|
Advance Income &
Deposit from Goods |
52,021,265 |
48,876,672 |
16,418,684 |
|
Other Current Liabilities |
68,131,083 |
9,010,260 |
12,315,125 |
|
|
|
|
|
|
Total Current Liabilities |
4,957,364,945 |
4,670,378,655 |
1,705,740,311 |
|
|
|
|
|
|
Current Portion of Trade
Accounts Payable |
- |
- |
6,041,790 |
|
Debt Rehabilitation Plan
Liabilities, net |
- |
- |
2,636,259,655 |
|
Liabilities for Employee Benefits
|
16,504,302 |
19,821,607 |
- |
|
Other Non-current Liabilities |
16,999,183 |
2,944,175 |
263,132 |
|
Total Liabilities |
4,990,868,430 |
4,693,144,437 |
4,348,304,888 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
per par value Authorized, issued
and fully paid share
capital 252,319,289 shares
|
2,523,192,890 |
2,523,192,890 |
2,523,192,890 |
|
|
|
|
|
|
Capital Paid |
2,523,192,890 |
2,523,192,890 |
2,523,192,890 |
|
Discount Value |
[2,519,725,679] |
[2,519,725,679] |
[2,519,725,679] |
|
Surplus on Revaluation
of Assets |
- |
- |
850,601,984 |
|
Unrealized Loss of
Securities Available for
Sale |
- |
- |
[60,445,500] |
|
Retained Earning Appropriated for Statutory Reserve |
3,875,543 |
3,875,543 |
3,875,543 |
|
Unappropriated |
[2,489,328,477] |
[1,910,057,102] |
[842,895,384] |
|
Other Components for Shareholders’ Equity |
1,191,299,454 |
1,263,081,004 |
- |
|
Total Shareholders' Equity |
[1,290,686,269] |
[639,633,344] |
[45,396,146] |
|
Total Liabilities & Shareholders' Equity |
3,700,182,161 |
4,053,511,093 |
4,302,908,742 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales & Service
Income |
1,996,823,024 |
1,395,868,477 |
1,723,064,142 |
|
Other Income |
387,548,486 |
190,953,318 |
1,015,927,227 |
|
Total Revenues |
2,384,371,510 |
1,586,821,795 |
2,738,991,369 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
2,207,662,550 |
1,779,556,013 |
1,936,378,436 |
|
Selling Expenses |
16,993,586 |
29,188,941 |
26,090,980 |
|
Administrative Expenses |
101,694,690 |
111,333,689 |
228,849,895 |
|
Doubtful |
329,935,848 |
386,040,054 |
- |
|
Remuneration’s Management |
13,843,800 |
13,603,750 |
18,863,800 |
|
Total Expenses |
2,670,130,474 |
2,319,722,447 |
2,210,183,111 |
|
|
|
|
|
|
Profit / [Loss] before Financial
Cost |
[285,758,964] |
[732,900,652] |
528,808,258 |
|
Financial Cost |
[293,512,411] |
[317,510,383] |
[400,828,882] |
|
|
|
|
|
|
Net Profit / [Loss] |
[579,271,375] |
[1,050,411,035] |
127,979,376 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.06 |
0.10 |
0.60 |
|
QUICK RATIO |
TIMES |
0.03 |
0.02 |
0.25 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.65 |
0.43 |
0.59 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.54 |
0.34 |
0.40 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
27.76 |
61.98 |
85.38 |
|
INVENTORY TURNOVER |
TIMES |
13.15 |
5.89 |
4.27 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
9.73 |
20.13 |
89.10 |
|
RECEIVABLES TURNOVER |
TIMES |
37.50 |
18.13 |
4.10 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
108.96 |
144.49 |
118.76 |
|
CASH CONVERSION CYCLE |
DAYS |
(71.47) |
(62.38) |
55.73 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
110.56 |
127.49 |
112.38 |
|
SELLING & ADMINISTRATION |
% |
5.94 |
10.07 |
14.80 |
|
INTEREST |
% |
14.70 |
22.75 |
23.26 |
|
GROSS PROFIT MARGIN |
% |
8.85 |
(13.81) |
46.58 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(14.31) |
(52.50) |
30.69 |
|
NET PROFIT MARGIN |
% |
(29.01) |
(75.25) |
7.43 |
|
RETURN ON EQUITY |
% |
- |
- |
- |
|
RETURN ON ASSET |
% |
(15.66) |
(25.91) |
2.97 |
|
EARNING PER SHARE |
BAHT |
(2.30) |
(4.16) |
0.51 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
1.35 |
1.16 |
1.01 |
|
DEBT TO EQUITY RATIO |
TIMES |
(3.87) |
(7.34) |
(95.79) |
|
TIME INTEREST EARNED |
TIMES |
(0.97) |
(2.31) |
1.32 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
43.05 |
(18.99) |
|
|
OPERATING PROFIT |
% |
(61.01) |
(238.59) |
|
|
NET PROFIT |
% |
44.85 |
(920.77) |
|
|
FIXED ASSETS |
% |
(5.60) |
11.97 |
|
|
TOTAL ASSETS |
% |
(8.72) |
(5.80) |
|
ANNUAL
GROWTH : ACCEPTABLE
An annual sales growth is 43.05%. Turnover has increased from THB
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.85 |
Impressive |
Industrial Average |
1.58 |
|
Net Profit Margin |
(29.01) |
Deteriorated |
Industrial Average |
0.36 |
|
Return on Assets |
(15.66) |
Deteriorated |
Industrial Average |
0.83 |
|
Return on Equity |
- |
|
Industrial Average |
2.03 |
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 8.85%. 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 -29.01%.
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 -15.66%.
Trend of the average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
0.06 |
Risky |
Industrial Average |
1.31 |
|
Quick Ratio |
0.03 |
|
|
|
|
Cash Conversion Cycle |
(71.47) |
|
|
|
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 0.06 times in 2012, decreased from 0.1 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 0.03 times in 2012,
increased from 0.02 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 -72 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
1.35 |
Risky |
Industrial Average |
0.59 |
|
Debt to Equity Ratio |
(3.87) |
Risky |
Industrial Average |
1.42 |
|
Times Interest Earned |
(0.97) |
Risky |
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 -0.98 lower than 1, so the company is not generating
enough cash from EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 1.35 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 Downtrend
Times Interest Earned Downtrend
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
0.65 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.54 |
Deteriorated |
Industrial Average |
2.26 |
|
Inventory Conversion Period |
27.76 |
|
|
|
|
Inventory Turnover |
13.15 |
Impressive |
Industrial Average |
5.11 |
|
Receivables Conversion Period |
9.73 |
|
|
|
|
Receivables Turnover |
37.50 |
Impressive |
Industrial Average |
3.82 |
|
Payables Conversion Period |
108.96 |
|
|
|
The company's Account Receivable Ratio is calculated as 37.50 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 62 days at the
end of 2011 to 28 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 5.89 times in year 2011 to 13.15
times in year 2012.
The company's Total Asset Turnover is calculated as 0.54 times and 0.34
times in 2012 and 2011 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 Downtrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.12 |
|
|
1 |
Rs.102.00 |
|
Euro |
1 |
Rs.81.43 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
NNA |
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.