MIRA INFORM REPORT
|
Report Date : |
07.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
ASIA METAL PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
55, 55/1 Moo 2, Soi Wat Namdaeng, Srinakarin Road, Bangkaew, Bangplee, Samutprakarn 10540 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
1993 |
|
|
|
|
Com. Reg. No.: |
0107547000176 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Importer & Distributor
of Steel Products |
|
|
|
|
No. of Employees : |
480 |
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 : |
Slow but correct |
|
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 |
|
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
ASIA METAL PUBLIC
COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 55, 55/1 MOO
2, SOI WAT
NAMDAENG,
SRINAKARIN ROAD,
BANGKAEW, BANGPLEE,
SAMUTPRAKARN 10540,
THAILAND
TELEPHONE : [66] 2383-4100
FAX : [66] 2383-4101-2
E-MAIL
ADDRESS : info@asiametal.co.th
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1993
REGISTERED NO. : 0107547000176
TAX ID NO. : 3011256305
CAPITAL REGISTERED : BHT.
549,973,800
CAPITAL PAID-UP : BHT.
479,937,265
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
CHUSAK YONGVONGPHAIBOON, THAI
MANAGING DIRECTOR
NO. OF STAFF : 480
LINES OF BUSINESS : STEEL
PRODUCTS
IMPORTER &
DISTRIBUTOR
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 March
9, 1993 as
a private limited
company under the
name style ASIA
METAL CO., LTD. by Thai
groups, to import
and distribute of
steel products. On
March 9, 2004,
its status was
changed to public
company, named ASIA
METAL PUBLIC COMPANY
LIMITED, and listed
on the stock
exchanged of Thailand on August
13, 2004. It
currently employs 480
staff.
It also achieved
the standard ISO 9001 : 2008 and TS
16949 certification quality
management system
The subject’s registered
address is 55,
55/1 Moo 2, Soi
Wat Namdaeng, Srinakarin
Rd., Bangkaew, Bangplee,
Samutprakarn 10540, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Chusak Yongvongphaiboon : Chairman |
[x] |
Thai |
52 |
|
Mrs. Phenchan Yongvongphaiboon |
[x] |
Thai |
49 |
|
Mr. Thanakorn Ritthibunlue |
[x] |
Thai |
47 |
|
Pol. Gen. Jumpol Manmai |
|
Thai |
64 |
|
Mrs. Taisika Phraisangob |
|
Thai |
65 |
|
Sub-Lt. Suree Buranathanit |
|
Thai |
80 |
|
Mr. Chanathip Trivuth |
|
Thai |
50 |
|
Mr. Virachai Suteerachai |
|
Thai |
64 |
AUTHORIZED PERSON
Any two of the
above directors [x] can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Chusak Yongvongphaiboon is
the Managing Director.
He is Thai
nationality with the
age of 52
years old.
Mrs.
Phenchan Yongvongphaiboon is the
Deputy Managing Director.
She is Thai
nationality with the
age of 49
years old.
Mr. Tanakorn Ritthibunlue
is the Accounting
and Finance Director.
He is Thai
nationality with the
age of 47
years old.
Mr. Chidchanok Tomawong is
the Marketing and
Factory Director.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in operating
complete range of
steel service centers.
It imports, distributes
and services of
steel coil, Hot
Rolled and Cold
Rolled, galvanized steel
[GI], e.g. steel
sheets, slitting coil,
steel pipes with
diameter of 1 inch
[25 mm.] to 4
inches [100 mm.] c-shaped steel
structure and service
delivery to the
customers.
PRODUCTION CAPACITY
521,000 tons per
annum comprising:
- Steel Sheet : 280,000 tons
per annum
- Steel Slit
Coil : 34,000 tons per
annum
- Steel Pipes : 111,000 tons
per annum
PURCHASE
80% of steel
products are purchased
from local suppliers,
20% of the
rest & raw
material are imported
from Japan, Korea,
Republic of China,
India, Australia, Germany
and Vietnam.
MAJOR SUPPLIERS
Sahaviriya Steel Industries
Public Company Limited : Thailand
G. Steel Public Company
Limited : Thailand
G J Steel Public
Company Limited : Thailand
SALES [LOCAL]
100% of products
is sold and serviced
locally to various
industries, such as construction, furniture,
electrical equipment, automobile
and etc.
REVENUE STRUCTURE
[Company
and consolidated]
|
|
2013 |
2012 |
||
|
|
Million baht |
% |
Million baht |
% |
|
Steel
Service Centers |
|
|
|
|
|
- Steel Providing
Service |
1,613.44 |
29.75 |
3,238.88 |
44.33 |
|
- Steel Cutting
Service |
- |
- |
- |
- |
|
Total Steel Service
Center |
1,613.44 |
29.75 |
3,238.88 |
44.33 |
|
|
|
|
|
|
|
Processed
Steel Products |
|
|
|
|
|
- Steel Sheet |
889.36 |
16.40 |
1,126.74 |
15.42 |
|
- Steel Slitting
Coil |
368.52 |
6.80 |
408.46 |
5.59 |
|
- Steel Pipes |
2,017.77 |
37.21 |
1,752.23 |
23.98 |
|
- Light Lips
Channels |
482.96 |
8.91 |
732.95 |
10.03 |
|
Total Processed Steel
Products |
3,758.61 |
69.31 |
4,020.38 |
55.02 |
|
|
|
|
|
|
|
Others |
50.94 |
0.94 |
47.43 |
0.65 |
|
|
|
|
|
|
|
Total
Revenue |
5,422.99 |
100.00 |
7,309.69 |
100.00 |
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.
SUBSIDIARY COMPANIES
Asia Metal Fabrication
Co., Ltd.
Business Type :
Manufacturer & distributor
of round steel
and square steel
pipes.
Investment :
The subject holds
55% of total
shares.
S T C Steel Co., Ltd.
Business Type :
Provider of design
and manufacture steel
structure and factory
construction service.
Investment :
The subject holds
99.99% of total
shares.
Vientiane Bonded Warehouse
Co., Ltd.
Business Type :
Warehouse service in
Laos
Investment :
The subject holds
40% of total
shares.
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.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office :
333 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
EMPLOYMENT
The subject currently
employs 480 staff.
[office and sales
staff]
LOCATION DETAILS
The premise is owned for administrative office,
factory I and service center at
the heading address.
Premise is located
in an industrial
area.
Branch I, factory II and service center
are located at
90/1 Moo 10,
Chachoengsao-Sattahip Rd., T. Sraseeleum, A. Panusnikom, Chonburi
20140.
Branch II :
15th Floor, Asia
Center Building, 173/13
South Sathorn Road,
Thungmahamek, Sathorn, Bangkok 10120.
COMMENT
Domestic steel consumption
has dramatically slowdown
since 2013. Low
productivity and high
costs cut into
incomes in the previous
year, as well as
slow exports of
industrial products and
sluggish consumption due mainly to
country’s economic sluggish.
FINANCIAL INFORMATION
The capital was
registered at Bht.
30,000,000 divided into
300,000 shares of
Bht. 100 each.
The capital was
increased later as
follows:
Bht. 100,000,000
on May 14,
2001
Bht. 200,000,000
on August 9,
2004
Bht. 399,973,800
on July 26,
2006
Bht. 549,973,800
on March 28,
2007
The latest registered
capital was increased
to Bht. 549,973,800 divided
into 549,973,800 shares
of Bht. 1 each with
Bht. 479,937,265 paid-up.
THE SHAREHOLDERS
LISTED WERE
[as at
April 2, 2014]
at Bht. 479,937,265
of capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Chusak Yongvongphaiboon Nationality: Thai |
76,700,000 |
15.98 |
|
Lady Pattama Leesawadtrakul Nationality: Thai |
69,000,000 |
14.37 |
|
Mr. Virachai Suteerachai Nationality: Thai |
46,432,400 |
9.67 |
|
Mrs. Phenchan Yongvongphaiboon Nationality: Thai |
40,000,000 |
8.33 |
|
Mr. Wint Suteerachai Nationality: Thai |
39,900,000 |
8.31 |
|
Ms. Peerada Yongvongphaiboon Nationality: Thai |
30,842,500 |
6.42 |
|
Ms. Chananya Yongvongphaiboon Nationality
: Thai |
20,500,000 |
4.27 |
|
Mr. Chanathip Trivuth Nationality: Thai |
20,000,000 |
4.17 |
|
Ms. Orawan Pongthanyalak Nationality: Thai |
9,705,000 |
2.02 |
|
Mr. Sumontri Taranitikul Nationality: Thai |
5,437,500 |
1.13 |
|
Mr. Kittipol Cheungwattananont Nationality: Thai |
4,384,100 |
0.91 |
|
|
362,901,500 |
75.58 |
|
Others |
117,035,765 |
24.42 |
Total Shareholders :
1,823
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Ms. Nongram Laohaareedilok No.
4334
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 |
41,839,750 |
39,844,391 |
105,584,210 |
|
Current investments |
137,717 |
131,343 |
144,694 |
|
Trade Accounts Receivable |
|
|
|
|
Related parties |
287,774 |
14,297,611 |
121,679 |
|
Other companies |
538,559,043 |
847,785,765 |
1,069,232,698 |
|
Short-term loans to
and interest receivable from
related company |
26,730,782 |
31,346,879 |
31,360,737 |
|
Inventories |
1,096,885,033 |
1,134,090,488 |
1,443,896,419 |
|
Receivable from foreign
currency forward contracts |
8,744,986 |
- |
17,162,219 |
|
Advance to suppliers
for purchase of
goods |
157,959,813 |
257,855,678 |
233,301,672 |
|
Other current assets
|
1,789,021 |
4,225,955 |
17,743,746 |
|
Total Current Assets
|
1,872,930,919 |
2,329,578,110 |
2,918,548,074 |
|
Non-Current Assets |
|
|
|
|
Fixed deposits
pledged as collateral
|
86,431,212 |
75,792,786 |
116,833,582 |
|
Deferred tax
assets |
40,659,689 |
31,077,610 |
- |
|
Investment in
subsidiaries & associated |
22,086,323 |
22,086,323 |
22,086,323 |
|
Available-for-sale investment |
21,246,000 |
- |
- |
|
Assets not
used in operation |
5,000,000 |
5,000,000 |
5,000,000 |
|
Property, plant
and equipment |
951,642,650 |
1,001,588,918 |
979,162,655 |
|
Deposit for
machineries acquisition |
163,505,892 |
100,269,844 |
77,728,723 |
|
Other non-current assets |
6,357,941 |
6,002,736 |
5,923,712 |
|
Total Non-Current
Assets |
1,296,929,707 |
1,241,818,217 |
1,206,734,995 |
|
Total Assets |
3,169,860,626 |
3,571,396,327 |
4,125,283,069 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank overdraft and Short-term loan
from bank |
1,234,293,070 |
1,428,123,285 |
2,378,959,526 |
|
Trade accounts payable |
|
|
|
|
Related parties |
6,993,257 |
1,287,127 |
- |
|
Other companies
|
145,833,187 |
338,671,075 |
52,619,336 |
|
Other payable |
- |
- |
64,332,011 |
|
Payable from foreign
currency forward contracts |
- |
17,831,440 |
- |
|
Current Portion Loans from financial institution |
- |
12,500,000 |
25,000,000 |
|
Liabilities under
finance lease agreement |
1,015,810 |
1,436,994 |
1,382,593 |
|
Accrued income tax |
284,805 |
31,228,466 |
7,605,992 |
|
Total Current Liabilities |
1,388,420,129 |
1,831,078,387 |
2,529,899,458 |
|
|
|
|
|
|
Long-term loan from financial institution |
- |
- |
12,500,000 |
|
Deferred tax liabilities |
13,538,612 |
15,569,404 |
- |
|
Employee benefit obligation |
3,663,155 |
3,256,428 |
2,849,701 |
|
Liabilities under hire-purchase agreements |
439,681 |
738,398 |
1,639,798 |
|
Total Liabilities |
1,406,061,577 |
1,850,642,617 |
2,546,888,957 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share capital-common shares, Baht 1 par value |
|
|
|
|
Authorised share
capital 549,973,800 shares |
549,973,800 |
549,973,800 |
549,973,800 |
|
Issued and fully
paid up share capital 479,937,265 common shares, Baht 1 par
value |
479,937,265 |
479,937,265 |
479,937,265 |
|
Premium on share capital |
297,427,100 |
297,427,100 |
297,427,100 |
|
Retained Earning |
|
|
|
|
Appropriated for
statutory reserve |
55,000,000 |
52,100,000 |
43,830,000 |
|
Unappropriated |
911,273,837 |
839,165,690 |
689,506,688 |
|
Other components of
equity |
20,160,847 |
52,123,655 |
67,693,059 |
|
Total Shareholders' Equity |
1,763,799,049 |
1,720,753,710 |
1,578,394,112 |
|
Total Liabilities & Shareholders' Equity |
3,169,860,626 |
3,571,396,327 |
4,125,283,069 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Revenues from sales and
services |
5,422,999,306 |
7,305,926,114 |
6,571,594,513 |
|
Gain on foreign currency exchange |
- |
33,168,350 |
[62,456,222] |
|
Loss on impairment of
investments in subsidiaries and
associates |
- |
- |
[15,600,000] |
|
Other income |
12,341,923 |
13,428,894 |
13,488,223 |
|
Total Revenues |
5,435,341,229 |
7,352,523,358 |
6,507,026,514 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of sales
and services |
4,985,379,748 |
6,888,758,520 |
6,134,571,857 |
|
Selling expenses |
79,003,350 |
91,909,188 |
82,682,667 |
|
Administrative expenses |
78,151,277 |
67,413,606 |
45,892,102 |
|
Loss on foreign currency exchange |
40,028,790 |
- |
- |
|
Management benefit expenses
|
9,958,250 |
13,550,140 |
12,959,900 |
|
Finance cost |
35,959,489 |
68,603,146 |
65,864,747 |
|
Total Expenses |
5,228,480,904 |
7,130,234,600 |
6,341,971,273 |
|
Profit before income
tax |
206,860,325 |
222,288,758 |
165,055,241 |
|
Income tax |
[45,464,370] |
[51,938,353] |
[53,861,882] |
|
Net Profit / [Loss] |
161,395,955 |
170,350,405 |
111,193,359 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.35 |
1.27 |
1.15 |
|
QUICK RATIO |
TIMES |
0.44 |
0.51 |
0.48 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.70 |
7.29 |
6.71 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.71 |
2.05 |
1.59 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
80.31 |
60.09 |
85.91 |
|
INVENTORY TURNOVER |
TIMES |
4.55 |
6.07 |
4.25 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
36.25 |
42.35 |
59.39 |
|
RECEIVABLES TURNOVER |
TIMES |
10.07 |
8.62 |
6.15 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
10.68 |
17.94 |
3.13 |
|
CASH CONVERSION CYCLE |
DAYS |
105.88 |
84.50 |
142.17 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.93 |
94.29 |
93.35 |
|
SELLING & ADMINISTRATION |
% |
3.08 |
2.37 |
2.15 |
|
INTEREST |
% |
0.66 |
0.94 |
1.00 |
|
GROSS PROFIT MARGIN |
% |
8.30 |
6.35 |
5.67 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.81 |
3.04 |
2.51 |
|
NET PROFIT MARGIN |
% |
2.98 |
2.33 |
1.69 |
|
RETURN ON EQUITY |
% |
9.15 |
9.90 |
7.04 |
|
RETURN ON ASSET |
% |
5.09 |
4.77 |
2.70 |
|
EARNING PER SHARE |
BAHT |
0.34 |
0.35 |
0.23 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.44 |
0.52 |
0.62 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.80 |
1.08 |
1.61 |
|
TIME INTEREST EARNED |
TIMES |
5.75 |
3.24 |
2.51 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(25.77) |
11.17 |
|
|
OPERATING PROFIT |
% |
(6.94) |
34.68 |
|
|
NET PROFIT |
% |
(5.26) |
53.20 |
|
|
FIXED ASSETS |
% |
(4.99) |
2.29 |
|
|
TOTAL ASSETS |
% |
(11.24) |
(13.43) |
|
ANNUAL
GROWTH : RISKY
An annual sales growth is -25.77%. Turnover has decreased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.30 |
Deteriorated |
Industrial Average |
17.61 |
|
Net Profit Margin |
2.98 |
Impressive |
Industrial Average |
0.95 |
|
Return on Assets |
5.09 |
Impressive |
Industrial Average |
1.35 |
|
Return on Equity |
9.15 |
Impressive |
Industrial Average |
3.87 |
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 8.3%. 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 2.98%
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 5.09%, 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 9.15%, 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 :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.35 |
Impressive |
Industrial Average |
1.26 |
|
Quick Ratio |
0.44 |
|
|
|
|
Cash Conversion Cycle |
105.88 |
|
|
|
The Current Ratio is to ascertain whether a company's short-term assets
are readily available to pay off its short-term liabilities. The company's figure
is 1.35 times in 2013, increased from 1.27 times, then it is generally
considered to have good short-term financial strength. When compared with the
industry average, the ratio of the company was higher, indicated that company
was an efficient operator in a dominant position within its industry.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there are
to cover current liabilities. The company's figure is 0.44 times in 2013,
decreased from 0.51 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 106 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.44 |
Impressive |
Industrial Average |
0.81 |
|
Debt to Equity Ratio |
0.80 |
Impressive |
Industrial Average |
2.15 |
|
Times Interest Earned |
5.75 |
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 lower the percentage means that the company is using
less leverage and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 5.76 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 0.44 less than 0.5, most of the company's
assets are financed through equity.
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 |
5.70 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.71 |
Satisfactory |
Industrial Average |
1.73 |
|
Inventory Conversion Period |
80.31 |
|
|
|
|
Inventory Turnover |
4.55 |
Satisfactory |
Industrial Average |
4.83 |
|
Receivables Conversion Period |
36.25 |
|
|
|
|
Receivables Turnover |
10.07 |
Impressive |
Industrial Average |
9.42 |
|
Payables Conversion Period |
10.68 |
|
|
|
The company's Account Receivable Ratio is calculated as 10.07 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 increased from 60 days at the
end of 2012 to 80 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 6.07 times in year 2012 to 4.55 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.71 times and 2.05
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.60.20 |
|
|
1 |
Rs.101.68 |
|
Euro |
1 |
Rs.83.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.