MIRA INFORM REPORT
|
Report Date : |
30.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
L.V. TECHNOLOGY PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
9th, Floor, K.P.N. Tower, 719 Rama 9 Road, Bangkapi, Huaykwang, Bangkok 10310 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
13.08.1996 |
|
|
|
|
Com. Reg. No.: |
0107546000211 [Former: 0105539088891] |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Provide Engineering Services |
|
|
|
|
No. of Employees : |
179 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
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 |
|
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
L.V. TECHNOLOGY
PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 9th, FLOOR,
K.P.N. TOWER, 719
RAMA 9 ROAD,
BANGKAPI, HUAYKWANG,
BANGKOK 10310,
THAILAND
TELEPHONE : [66] 2717-0835-40,
2717-0847-9
FAX :
[66] 2717-0841,
2717-0577
E-MAIL
ADDRESS : mkt@lv-technology.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1996
REGISTRATION
NO. : 0107546000211 [Former : 0105539088891]
TAX
ID NO. : 3011751671
CAPITAL REGISTERED : BHT. 864,230,874
CAPITAL PAID-UP : BHT.
692,095,099
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. VICHAI TANTIKULANANTA, THAI
CHIEF EXECUTIVE
OFFICER
NO.
OF STAFF : 179
LINES
OF BUSINESS : ENGINEERING SERVICE
PROVIDER
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 originally
established on August 13,
1996 as a
private limited company under
the registered name “L.V. Technology
Co., Ltd.” by
Thai and Danish
groups, with the
business objective to
provide engineering service,
specially in cement
industry. On August
4, 2003, its status
was converted to
public limited company under
the name L.V.
TECHNOLOGY PUBLIC COMPANY
LIMITED. The subject
was listed on
the Stock Exchange
of Thailand on
July 14, 2004.
Later the subject
expanded its business
to provide engineering services
to various industries.
It currently employs
179 staff.
LVT also established their
own subsidiaries in
India, Republic of China, France,
U.S.A., and Brazil,
to provide all
basic engineering design
services.
The subject’s registered address is 9th
Flr., K.P.N. Tower, 719 Rama 9 Rd., Bangkapi,
Huaykwang, Bangkok 10310,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Vichai Tantikulananta |
[x] |
Thai |
73 |
|
Mr. Thanik Siriwattanaprayoon |
[x] |
Thai |
73 |
|
Mr. Varun Chaudhary |
|
Nepalese |
28 |
|
Mr. Ura Wang-Om-Klang |
|
Thai |
- |
|
Mr. Thanachat Thanasettagone |
|
Thai |
- |
|
Mr. Suparatchai Vorarat |
|
Thai |
- |
|
Gen. Chookiat Tansuwat |
|
Thai |
- |
|
Mr. Sutat Siriphand |
|
Thai |
- |
|
Mr. Punya Kritiyawong |
[x] |
Thai |
- |
AUTHORIZED PERSON
Any two of
the mentioned directors [x] can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Vichai Tantikulananta is
the Chief Executive
Officer.
He is Thai
nationality with the
age of 73 years old.
Mr. Punya Kritayawong is
the Acting Senior
Deputy Managing Director [Marketing and
Supply].
He is Thai
nationality.
Ms. Pavichaya Udomratchaikul is the
Deputy Managing Director
[Project Management].
She is Thai
nationality.
Mr. Kitirach Tachamanokul is
the Deputy Managing
Director [Plant and
Engineering].
He is Thai
nationality.
Ms. Narinrat Rattanatreyanapab is
the Deputy Managing
Director [Finance and
Accounting].
She is Thai
nationality.
BUSINESS OPERATIONS
The subject
is engaged in
wide range of technology and
engineering services in
connection with design,
developing, as well as
production and installation
of equipment and
saving power consumption,
specialized in the fields
of cement, energy
and mining industries,
as well as
production and installation of equipments
which can be
categorized into 4
main types as
follow:
·
Technology
improvement for vertical
roller mill
·
Technology
improvement for cement
mill/ball mill
·
Technology
improvement for rotary
kiln
·
Efficiency
improvement for cement
plant production process
PURCHASE
100% of engineering
equipment and components
are purchased from
local suppliers.
SALES/SERVICES
The products
and services are
supplied to customers,
mainly in cement,
energy and mining
industries, which 98.08%
is exported to
India, Argentina, UAE,
Saudi Arabia, Brazil, Vietnam, Republic of China,
Malaysia, Myanmar, Bahrain,
Philippines, Pakistan, Iran,
Taiwan, Middle East
and etc., and
the remaining 1.92%
is to local
suppliers.
MAJOR CUSTOMERS
Falcon Cement
Company B.S.C. : Bahrain
Max [Myanmar]
Manufacturing Co., Ltd. : Myanmar
Aalborg Portland
[Malaysia] Sdn. Bhd. :
Malaysia
SCG Trading
Co., Ltd. : Thailand
REVENUE STRUCTURE
[Unit :
Million Baht]
|
Type of
service |
2011 |
2012 |
||
|
|
Amount |
% |
Amount |
% |
|
|
|
|
|
|
|
Revenue from service
agreements |
2,949.54 |
95.41 |
2,017.20 |
96.61 |
|
Revenue from other
sources |
141.75 |
4.59 |
70.82 |
3.39 |
|
|
|
|
|
|
|
Total Revenue |
3,091.29 |
100.00 |
2,088.02 |
100.00 |
SERVICE INCOME STRUCTURE
[Unit :
Million Baht]
|
|
2011 |
2012 |
|
Service from
technical improvement of: |
|
|
|
-
Vertical Roller Mills |
182.61 |
277.97 |
|
-
Ball Mill |
0.99 |
18.71 |
|
-
Rotary Kiln |
9.66 |
5.32 |
|
-
Production process of
cement Plants |
2,580.59 |
1,657.69 |
|
-
Designing and Consulting
Services for
License and Royalty
Fees |
175.69 |
57.52 |
|
|
|
|
|
Total income
from services |
2,949.54 |
2,017.20 |
SUBSIDIARY AND AFFILIATED COMPANIES
L.V. Europe S.A.
Business Type :
Provides engineering service
in France
L.V. Technology Engineering
Co., Ltd.
Business Type : Provides
engineering service in
Republic of China
L N V Technology Private
Ltd.
Business Type : Provides
engineering service in
India
BLVT LLC
Business Type : Provides
engineering service in
U.S.A.
LV Latino America
Equipmentos Industrials Limited
Company
Business Type : Provides
engineering service in
Brazil
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 to the
past two years.
CREDIT
Sales & services 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.
Foreign services are
by T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
The Siam Commercial
Bank Public Co.,
Ltd.
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
179 staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is located in
commercial/residential area.
COMMENT
The
market of overall
industrial sector in
2012 has been
slowing down which
resulted to decline
subject’s sales &
service revenues comparing
to the previous year.
The
deterioration of production
and sales has
seen since the
end of year
2012 and continued
declining into 2013.
The business trend
has slow expansion
from the decline of
country’s economic confidence.
FINANCIAL INFORMATION
The capital was
registered at Bht. 325,000,000 divided
into 325,000,000 shares
of Bht. 1
each.
The
capital was increased
later as follows:
Bht. 490,555,981
in 2009
Bht. 584,328,044
in 2011
The
latest registered capital was increased to
Bht. 864,230,874 divided
into 864,230,874 shares
of Bht. 1 each,
with the current
capital paid-up at
Bht. 692,095,099.
MAIN SHAREHOLDERS
[as at February
18, 2014] at
Bht. 692,095,099 of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
CG Cement Global
Pte. Ltd. Nationality: Singaporean Address : - |
67,529,815 |
9.76 |
|
Mr. Hans-Jorgen Ibsen Nielsen Nationality: Danish Address : - |
51,600,169 |
7.46 |
|
Mr. Jirawut Kuvanant Nationality: Thai Address : - |
44,149,000 |
6.38 |
|
Thai NVDR Co.,
Ltd. Nationality: Thai Address : - |
38,882,403 |
5.62 |
|
Quam Securities Company
Limited A/C Cient Nationality: Thai Address : - |
21,711,400 |
3.14 |
|
Thai Packaging and Printing
Public Company Limited Nationality: Thai Address : - |
8,841,300 |
1.28 |
|
KBL European Private
Bankers S.A. Nationality: Luxembourg Address : - |
8,250,000 |
1.19 |
|
Others |
451,131,012 |
65.17 |
Total Shareholders :
3,674
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Mr. Bunyarit Thanomcharoen No. 7900
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Cash and cash
equivalents |
17,269,309 |
107,289,058 |
51,307,001 |
|
Trade accounts receivable |
446,193,601 |
481,312,119 |
305,040,012 |
|
Construction contract works
in project |
519,739,212 |
1,639,346,688 |
338,939,255 |
|
Advance payments to
suppliers |
9,502,893 |
58,855,140 |
77,675,686 |
|
Short-term loan to related parties |
30,387,300 |
- |
21,786,777 |
|
Inventories |
53,982,639 |
24,121,026 |
61,699,530 |
|
Other current assets
|
28,097,752 |
30,264,446 |
27,422,963 |
|
|
|
|
|
|
Total Current Assets
|
1,105,172,706 |
2,341,188,477 |
883,871,224 |
|
|
|
|
|
|
Long-term deposit and restricted
deposits at financial
institutions |
163,841,255 |
377,926,301 |
199,500,710 |
|
Retention receivable |
312,026,213 |
256,818,124 |
- |
|
Advance for investment in jointly-controlled entity |
15,780,694 |
- |
- |
|
Investment in associated
company |
77,600,414 |
4,137,164 |
6,072,380 |
|
Investment in subsidiaries |
498,500 |
498,500 |
498,500 |
|
Investment in jointly-controlled entity
|
139,292,125 |
3,897 |
3,897 |
|
Equipment |
3,573,833 |
5,232,470 |
6,253,970 |
|
Intangible assets |
4,302,410 |
9,433,783 |
13,369,996 |
|
Other non-current assets |
1,468,727 |
1,753,604 |
1,662,375 |
|
Total Assets |
1,823,556,877 |
2,996,992,320 |
1,111,233,052 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Short-term loan from
financial institution |
95,117,948 |
68,166,419 |
36,241,553 |
|
Short-term loan from a
subsidiary |
- |
6,000,000 |
- |
|
Trade accounts payable |
601,691,921 |
293,575,797 |
52,260,209 |
|
Excess of progress
billings over construction contracts
work process |
90,596,669 |
52,755,380 |
- |
|
Project contract payable |
- |
- |
297,022,594 |
|
Advance received from customer |
296,045,860 |
728,180,100 |
- |
|
Accrued equipment costs |
420,740,455 |
1,239,235,247 |
303,679,742 |
|
Accrued commission expenses |
39,157,658 |
121,928,932 |
17,785,758 |
|
Provision for project
loss |
26,000,000 |
31,941,032 |
33,688,940 |
|
Provision for warranty
project |
6,941,549 |
10,139,913 |
32,107,850 |
|
Other current liabilities |
60,688,301 |
84,720,302 |
40,767,089 |
|
|
|
|
|
|
Total Current Liabilities |
1,636,980,361 |
2,636,643,122 |
813,553,735 |
|
|
|
|
|
|
Employee benefits obligation |
14,955,489 |
13,748,614 |
- |
|
Excess loss on
carrying value of investment |
2,567,690 |
6,440,512 |
- |
|
Total Liabilities |
1,654,503,540 |
2,656,832,248 |
813,553,735 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share capital |
|
|
|
|
Authorized share
capital |
584,328,044 |
584,328,044 |
490,555,981 |
|
Issued and
paid-up share capital |
518,538,524 |
466,690,241 |
375,035,254 |
|
Additional paid in
capital : |
|
|
|
|
Premium on share
capital |
194,803,313 |
179,248,828 |
120,748,784 |
|
Retained earning [Deficit] Appropriated : |
|
|
|
|
- statutory reserve |
13,323,000 |
13,323,000 |
13,323,000 |
|
Unappropriated |
[557,611,500] |
[319,101,997] |
[211,427,721] |
|
Total Shareholders’ Equity |
169,053,337 |
340,160,072 |
297,679,317 |
|
Total Liabilities &
Shareholders’ Equity |
1,823,556,877 |
2,996,992,320 |
1,111,233,052 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Contract income |
2,017,197,597 |
2,949,074,948 |
782,554,600 |
|
Gain on exchange
rate |
38,275,585 |
39,409,800 |
- |
|
Dividend income |
64,819,567 |
5,870,705 |
|
|
Other income |
4,433,042 |
39,771,689 |
13,677,359 |
|
|
2,124,725,791 |
3,034,127,142 |
796,231,959 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of costs |
2,054,514,311 |
2,789,807,197 |
752,778,544 |
|
Selling expenses |
53,742,829 |
143,324,173 |
42,720,655 |
|
Administrative expenses |
219,776,353 |
173,754,590 |
223,703,355 |
|
Directors and management remuneration |
20,402,438 |
17,047,475 |
2,986,000 |
|
Finance costs |
14,799,363 |
1,355,946 |
388,107 |
|
Loss on exchange
rate |
- |
- |
51,728,573 |
|
|
|
|
|
|
Total Expenses |
2,363,235,294 |
3,125,289,381 |
1,074,305,234 |
|
|
|
|
|
|
Profit before income
tax |
[238,509,503] |
[91,162,239] |
[278,073,275] |
|
Income tax |
- |
- |
[396,960] |
|
Net Profit / [Loss] For The Year |
[238,509,503] |
[91,162,239] |
[278,470,235] |
BALANCE SHEET [BAHT]
The
latest financial figures
published for September
30, 2013 was :
ASSETS
[Thousand Baht]
|
Current Assets |
2013 |
|
|
|
|
Cash and cash
equivalents |
6,207 |
|
Trade accounts receivable |
372,770 |
|
Construction contract works
in project |
38,323 |
|
Advance payments to
suppliers |
152,339 |
|
Inventories |
26,603 |
|
Other current assets
|
28,126 |
|
|
|
|
Total Current Assets
|
624,368 |
|
|
|
|
Deposit at financial institutions –restricted for
pledges |
173,029 |
|
Retention receivable from construction contracts |
355,758 |
|
Advances for investment
in subsidiaries |
6,278 |
|
Advances for investment in jointly-controlled entity |
75,338 |
|
Investment in associated
|
74,261 |
|
Investment in subsidiaries |
181,325 |
|
Investment in jointly-controlled entities |
141,261 |
|
Long-term loans to other parties
party |
532 |
|
Equipment |
2,199 |
|
Intangible assets |
638 |
|
Other non-current assets |
2,905 |
|
Deferred tax assets |
3,100 |
|
Total Assets |
1,640,992 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
[Thousand Baht]
|
Current
Liabilities |
2013 |
|
|
|
|
Short-term loan from a
subsidiary company |
41,342 |
|
Trade accounts payable |
349,367 |
|
Excess of progress
billings over construction contracts
work process |
331,112 |
|
Advance received from customer |
492,930 |
|
Accrued commission expenses |
45,727 |
|
Provision for project
loss |
28,694 |
|
Provision for warranty
project |
19,408 |
|
Other current liabilities |
25,245 |
|
|
|
|
Total Current Liabilities |
1,333,825 |
|
|
|
|
Retirement benefit obligation |
15,502 |
|
Excess loss on carrying
value of investment |
3,453 |
|
Total Liabilities |
1,352,780 |
|
|
|
|
Shareholders' Equity |
|
|
Share capital |
|
|
Authorized share
capital |
915,231 |
|
Issued and
paid-up share capital |
691,640 |
|
Premium on share capital |
238,078 |
|
Other Components of Equity |
31,042 |
|
Retained earning [deficit] Appropriated : |
|
|
statutory reserve |
13,323 |
|
Unappropriated |
[685,871] |
|
Total Shareholders’ Equity |
288,212 |
|
Total Liabilities &
Shareholders’ Equity |
1,640,992 |
PROFIT & LOSS ACCOUNT
For the nine-month period ended
September 30, 2013.
[Thousand Baht]
|
Revenue |
2013 |
|
|
|
|
Contract income |
781,091 |
|
Other income |
|
|
Profit on
sales of investment |
200,177 |
|
Gain on exchange
rate |
796 |
|
Other income |
11,177 |
|
|
993,241 |
|
Expenses |
|
|
|
|
|
Cost of costs |
869,666 |
|
Selling expenses |
5,807 |
|
Administrative expenses |
148,384 |
|
Directors remuneration |
1,268 |
|
Finance costs |
615 |
|
|
|
|
Total Expenses |
1,025,740 |
|
|
|
|
Profit before income
tax |
32,499 |
|
Income tax |
[284] |
|
Net Profit / [Loss] For The Year |
[32,215] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.68 |
0.89 |
1.09 |
|
QUICK RATIO |
TIMES |
0.62 |
0.87 |
0.98 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
564.44 |
563.61 |
125.13 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.11 |
0.98 |
0.70 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
9.59 |
3.16 |
29.92 |
|
INVENTORY TURNOVER |
TIMES |
38.06 |
115.66 |
12.20 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
80.74 |
59.57 |
142.28 |
|
RECEIVABLES TURNOVER |
TIMES |
4.52 |
6.13 |
2.57 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
106.90 |
38.41 |
25.34 |
|
CASH CONVERSION CYCLE |
DAYS |
(16.57) |
24.32 |
146.85 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
101.85 |
94.60 |
96.20 |
|
SELLING & ADMINISTRATION |
% |
13.56 |
10.75 |
34.05 |
|
INTEREST |
% |
0.73 |
0.05 |
0.05 |
|
GROSS PROFIT MARGIN |
% |
3.48 |
8.28 |
5.55 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(11.82) |
(3.09) |
(35.53) |
|
NET PROFIT MARGIN |
% |
(11.82) |
(3.09) |
(35.58) |
|
RETURN ON EQUITY |
% |
(141.09) |
(26.80) |
(93.55) |
|
RETURN ON ASSET |
% |
(13.08) |
(3.04) |
(25.06) |
|
EARNING PER SHARE |
BAHT |
(46.00) |
(19.53) |
(74.25) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.91 |
0.89 |
0.73 |
|
DEBT TO EQUITY RATIO |
TIMES |
9.79 |
7.81 |
2.73 |
|
TIME INTEREST EARNED |
TIMES |
(16.12) |
(67.23) |
(716.49) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(31.60) |
276.85 |
|
|
OPERATING PROFIT |
% |
161.63 |
(67.22) |
|
|
NET PROFIT |
% |
(161.63) |
67.26 |
|
|
FIXED ASSETS |
% |
(31.70) |
(16.33) |
|
|
TOTAL ASSETS |
% |
(39.15) |
169.70 |
|
ANNUAL GROWTH: RISKY
An annual sales growth is -31.6%.
Turnover has decreased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
3.48 |
Deteriorated |
Industrial
Average |
72.05 |
|
Net Profit Margin |
(11.82) |
Deteriorated |
Industrial
Average |
2.58 |
|
Return on Assets |
(13.08) |
Deteriorated |
Industrial
Average |
3.04 |
|
Return on Equity |
(141.09) |
Deteriorated |
Industrial
Average |
7.68 |
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 3.48%. 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 -11.82%.
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 -13.08%.
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. When compared with the
industry average, it was lower, the company's figure is -141.09%.
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 |
0.68 |
Risky |
Industrial
Average |
1.28 |
|
Quick Ratio |
0.62 |
|
|
|
|
Cash Conversion Cycle |
(16.57) |
|
|
|
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 2012, decreased from 0.89 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 0.62 times in 2012,
decreased from 0.87 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 -17 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.91 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
9.79 |
Risky |
Industrial
Average |
1.52 |
|
Times Interest Earned |
(16.12) |
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 -16.12 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 0.91 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 |
564.44 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.11 |
Satisfactory |
Industrial
Average |
1.18 |
|
Inventory Conversion Period |
9.59 |
|
|
|
|
Inventory Turnover |
38.06 |
Impressive |
Industrial
Average |
4.87 |
|
Receivables Conversion Period |
80.74 |
|
|
|
|
Receivables Turnover |
4.52 |
Impressive |
Industrial
Average |
2.60 |
|
Payables Conversion Period |
106.90 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.52 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 3 days at the end
of 2011 to 10 days at the end of 2012. This represents a negative trend. And
Inventory turnover has decreased from 115.66 times in year 2011 to 38.06 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.11 times and 0.98
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 Stable
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.84 |
|
|
1 |
Rs.98.41 |
|
Euro |
1 |
Rs.80.03 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIT |
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.