MIRA
INFORM REPORT
|
Report Date : |
02.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
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Registered Office : |
30th
Floor, |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
01.07.1988 |
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Com. Reg. No.: |
0105531049187 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is engaged in manufacturing of
electric wires and
cables, including enamel
wires and communication cables.
|
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No of Employees : |
520 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
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 – 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 |
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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 & Address
SIAM PACIFIC
ELECTRIC WIRE AND CABLE CO., LTD.
SUMMARY
BUSINESS ADDRESS : 30th
FLOOR, CHARN ISSARA
TOWER II,
2922/311-312 NEW
PETCHBURI ROAD,
BANGKAPI, HUAYKWANG,
BANGKOK 10310,
THAILAND
TELEPHONE : [66] 2308-2091
FAX : [66] 2308-2081-2
E-MAIL ADDRESS : sp@spewc.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1988
REGISTRATION NO. : 0105531049187 [Former:
4922/2531]
TAX ID NO. : 3101739565
CAPITAL REGISTERED : BHT.
670,000,000
CAPITAL PAID-UP : BHT.
670,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
CHEN CHENG-NAN, CHINESE
MANAGING DIRECTOR
NO. OF STAFF : 520
LINES OF BUSINESS : ELECTRIC WIRES
AND CABLES MANUFACTURER,
DISTRIBUTOR AND
EXPORTER
|
|
|
CORPORATE PROFILE |
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was established on July 1, 1988 as a
private limited company
under the name style
SIAM PACIFIC ELECTRIC
WIRE AND CABLE
CO., LTD. The subject is
engaged in manufacturing of high quality
wires and cable for both local
and foreign markets.
The subject is
also a global
leader in wire
and cable production
technologies. It currently
employs approximately 520 staff.
The subject achieved the
standard ISO 9001 : 2008
certification for Quality Management System [QMS] and ISO
140001 : 2004 Certification for
Environmental Management System
[EMS] in 2007
and 2004 respectively.
The subject’s registered
address is 30th Floor,
Charn Issara Tower
II, 2922/311-312 New
Petchburi Rd., Bangkapi,
Huaykwang, Bangkok 10310,
and this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Lu Wei-Ming |
[x] |
Chinese |
55 |
|
Mr. Soon Town
Chun |
|
Chinese |
64 |
|
Mr. Chartchai Chutima |
|
Thai |
57 |
|
Mr. Bandhit Tanchavalit |
[x] |
Thai |
49 |
|
Mr. Yuan Chun-Tang |
|
Chinese |
54 |
|
Mr. Sun Tao-Heng |
[x] |
Chinese |
60 |
|
Mr. Lee Michael Chao
Chun |
[x] |
American |
65 |
|
Mr. Cheng Andy Chow-Chun |
|
American |
56 |
|
Mr. Chen Cheng-Nan |
[x] |
Chinese |
57 |
|
Mr. Chang Hsiao-Chun |
|
Chinese |
54 |
|
Mr. Chu Ying Shyang |
|
Chinese |
48 |
AUTHORIZED PERSON
Two of the
mentioned directors [x]
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Chen Cheng-Nan
is the Managing
Director.
He is Chinese
nationality with the
age of 57
years old.
Mr. Bandhit Tanchavalit is
the Deputy Managing
Director.
He is Thai
nationality with the
age of 49
years old.
Mr. Yuan Chun-Tang
is the Factory
Manager.
He is Chinese
nationality with the
age of 54
years old.
Mr. Lu Wei-Ming is
the Marketing Manager.
He is Chinese
nationality with the age
of 55 years
old.
Mr. Kwandee Saichol
is the Sales
Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
of electric wires
and cables, including
enamel wires and
communication cables.
Ranges of products
are as
follows:
1. Enameled Wire
Siam Pacific (and Pacific-Thai) manufactures TIS and UL approved
enameled wires with a large
diameter range from
0.018 mm to 4.50 mm.
The application of
enameled wire are
widespread, serving as
components for electromagnetic products,
including building generators,
motors, transformers, relays,
measuring instruments, control
equipments, telecommunication equipments
and other electronic
equipments. It enameled
round copper wire
and enameled round
aluminum wire products
comply with international
standards including IEC,
JIS, ANSI/NEMA MW
1000, and TIS.
- Enameled wire products include
the following:
|
PVF Enamel (QQ) |
: Polyvinyl format |
|
UEW Enamel (QA) |
: Polyurethane |
|
PEW Enamel (QZ) |
: Polyester |
|
UEW-NY Enamel (QA/X) |
: Two layers, base coat polyurethane, top coat nylon resin |
|
PEW-NY Enamel (QZ/X) |
: Two layers, base coat polyester, top coat nylon resin |
|
EIW Enamel (QZY) |
: Polyester-amide-imide or polyester-imide |
|
AIEIW Enamel Q(ZY/XY) |
: Two layers, base coat polyesterimide or polyester-amide-imide, top
coat polyamide-imide |
|
New Enamel |
: Polyamide varnish mainly composed of nylon 12 |
|
Litz Enamel |
: Litz wire consists of any different insulation magnet wire |
|
Self-bonding Enamel (QAN, QZN) |
: Self-bonding layer shall be applied to the base coat such as UEW, PEW or EIW, etc. |
2. Communication Cable
Communication cables are
used to transmit
telephone signals, internet
communications, and cable
television signals. Its
cable products have
a wide range
of applications including
public switched telephone
networks, computer information
networks, mobile telecommunications networks,
and instrument control
system. Types of
cable are included
indoor and outdoor
type, duct or
direct-buried and aerial
types according to
installation requirements. Cable
types are also divided
into inner-city, outer-city, and
long distance cables
according to transmission distance requirement.
Range : 0.4mm,
0.5mm, 0.65mm, 0.9mm. From 1 pair to 3,000 pairs
Products : Underground cable (AP-FSF), Aerial
(AP-PIC, AP-FIG8), Terminating
cable
(PVC-PVC), TIEV-CC, TPEV-CC, Drop wire, Jumper wire,
PE-P,
PAP, etc.
Main customers: TOT, 7th
Project, CAT, TA, TT&T, and many private projects.
Communication cable products include the following:
Polyethylene insulated alpeth sheathed cable (AP-PIC)
Figure 8 polyethylene insulated
alpeth sheathed cable (AP-FIG8)
Foam-skin insulated alpeth sheathed jelly filled cable (AP-FSF)
Foam-skin insulated alpeth sheathed jelly filled cable with core
separator (DSAP-FSF)
Polyethylene insulated alpeth sheathed cable with core separator
(DSAP-PIC)
Foam-skin insulated ASP jelly
filled cable (ASP-FSF)
Polyethylene insulated low loss alpeth sheathed cable (AP-PIC LOW LOSS)
Polyethelene insulated single wire armoured alpeth sheathed cable
(AP-SWA)
Polyvinyl chloride insulated and
sheathed terminating cable (TM)
Polyvinyl chloride insulated
jumper wire (JW)
Polyethylene insulated and
polyvinyl chloride sheathed inside-outside station wire
(TIEV-CC)
Polyethylene insulated and
polyvinyl chloride sheathed
terminating cable (TPEV/TPEV-CC)
Polyvinyl chloride insulated
and self-support telephone drop wire (DW)
BRAND NAME
“SP”
PRODUCTION CAPACITY
Communication Cable : 119,147
pairs-km/year
Enamelled Wire : 7,045 metric
tons/year
IMPORT
Raw materials such as copper,
plastic resin and
accessories are imported
from
Taiwan, Republic of
China, Japan and
United States of
America.
MAJOR SUPPLIERS
Asia Pacific Wire & Cable Corp
Ltd. : Taiwan
Pacific Electric Wire
and Cable Co.,
Ltd. : Thailand
SALES [LOCAL]
80% of its
products is sold locally by
wholesales to dealers
and end-users both
Government, state enterprises
and private sectors
as the followings:
- TOT Public
Company Limited
- TT & T Public
Company Limited
- Total Access
Communication Public Company
Limited
True Corporation Public
Company Limited
Intouch Holdings Public
Company Limited
CAT Telecom Public
Company Limited
United Communication Industry
Public Company Limited
SVOA Public Company
Limited
etc.
EXPORT [COUNTRY]
20% of its
products is exported
to Republic of
China, Hong Kong, India,
Pakistan, Singapore, Malaysia,
Taiwan, Indonesia, Laos,
Vietnam, Myanmar and
Middle East countries.
MAJOR CUSTOMER
Shanghai Yayang Electric
Co., Ltd. : Republic
of China
RELATED AND
AFFILIATED COMPANY
Pacific-Thai Electric Wire
& Cable Co., Ltd.
Business Type : Manufacturer of
wires & cable
Address : 2922/12 New
Petchburi Rd., Bangkapi,
Huaykwang, Bangkok
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 IRICO’S
DATABASE for the
past two years.
CREDIT
Sales are by
cash or on
the credits term of
30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
T/T.
Exports are against
L/C at sight
and T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[New Petchburi Branch : 1975/1 New
Petchburi Rd., Huaykwang,
Bangkok]
EMPLOYMENT
The subject employs
approximately 520 staff.
[office staff and
factory workers].
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in commercial area.
Factory is situated on
100,000 square meters plot of
land at 8-9
Moo 5, Tivanont
Rd.,
T. Banmai, A. Muang,
Pathumthani 12000.
Tel: [66] 2501-2240,
Fax: [66] 2963-7868, 2019-6168.
COMMENT
The subject is
a global leader
in wire and
cable production technologies.
With more than
25 years of experience and
expertise in the
field, it has
established itself as
a major player
in this highly
competitive and volatile
market. Its market
share in Thailand
is approximately 33%
for enameled wire
products and 25%
for communication and
power cable products.
Subject maintains its
solid business.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 1,000,000 divided
into 10,000 shares
of Bht. 100 each.
The capital was
increased later as
follows:
Bht. 170,000,000
on January 9,
1990
Bht. 370,000,000
on November 30,
1992
Bht. 670,000,000
on December 9,
1996
The latest registered
capital was increased
to Bht. 670,000,000
divided into 6,700,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE : [as
at March 19,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Charoong Thai Wire & Cable Public Company Limited Nationality: Thai Address : 598/71
Bangna-Trad Road, Bangna, Bangkok |
6,699,994 |
100.00 |
|
Mr. Kung Chin-Yung Nationality: Chinese Address : 25/43
Soi Ekamai, Sukhumvit
63 Road,
Wattana, Bangkok 10110 |
1 |
- |
|
Mr. Han Chung
Yuan Nationality: Chinese Address : 9
Farrer Rd., #03-06 Singapore 268821 |
1 |
- |
|
Mr. Chartchai Chutima Nationality: Thai Address : 77 Samsennai, Phyathai,
Bangkok 10400 |
1 |
- |
|
Mr. Ataporn Bubphachuen Nationality: Thai Address : 191
Moo 5, T. Banmai,
A. Muang, Pathumthani |
1 |
- |
|
Mr. Lu Wie-Ming Nationality: Chinese Address : 289/1504
Pattanakarn 30 Road, Suanluang Praves,
Bangkok 10250 |
1 |
- |
|
Mr. Bandhit Tanchavalit Nationality: Thai Address : 199/201
Moo 3, Tharaeng,
Bangkhen, Bangkok |
1 |
- |
Total Shareholders : 7
Share Structure [as at March
19, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
6,699,997 |
100.00 |
|
Foreign - Chinese |
3 |
3 |
- |
|
Total |
7 |
6,700,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Ms. Krongkaew Limkittikul No.
5874
BALANCE SHEET
[BAHT]
The latest financial figures published
as at December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
626,752,306 |
765,388,120 |
641,763,592 |
|
Short -term Investment |
- |
- |
80,000,000 |
|
Trade Accounts &
Other Receivable |
491,346,438 |
663,583,287 |
413,498,884 |
|
Inventories |
380,646,300 |
496,277,334 |
640,739,321 |
|
Refundable Tax |
4,205,845 |
51,563,839 |
50,225,067 |
|
Loan to Other |
10,000,000 |
10,000,000 |
10,000,000 |
|
Other Current Assets
|
5,325,380 |
2,385,627 |
11,928,186 |
|
|
|
|
|
|
Total Current Assets
|
1,518,276,269 |
1,989,198,207 |
1,848,155,050 |
|
Cash at Bank pledged as a Collateral |
261,700,000 |
261,700,000 |
261,729,044 |
|
Investment in Subsidiaries |
183,340,571 |
183,340,571 |
183,340,571 |
|
Long-term Investment |
75,270,000 |
11,000,000 |
- |
|
Investment Property |
6,695,694 |
7,263,838 |
7,831,982 |
|
Fixed Assets |
529,182,198 |
515,970,441 |
453,103,316 |
|
Other Non-current Assets |
522,092 |
1,048,924 |
2,331,353 |
|
Total Assets |
2,574,986,824 |
2,969,521,981 |
2,756,491,316 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Trust Receipt Payable |
587,353,756 |
793,685,182 |
819,438,534 |
|
Trade Accounts & Other
Payable |
72,608,217 |
127,470,286 |
117,791,651 |
|
Short-term Loan from Related Company |
6,415,860 |
5,992,951 |
6,198,262 |
|
Accrued Income Tax |
|
5,494,726 |
6,367,459 |
|
Other Current Liabilities |
6,339,051 |
5,915,922 |
4,725,413 |
|
|
|
|
|
|
Total Current Liabilities |
672,716,884 |
938,559,067 |
954,521,319 |
|
Deferred Income Tax Liabilities |
40,345,296 |
34,449,151 |
- |
|
Provision for Employee Benefits
|
16,680,945 |
10,478,056 |
6,871,866 |
|
Total Liabilities |
729,743,125 |
983,486,274 |
961,393,185 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 6,700,000 shares |
670,000,000 |
670,000,000 |
670,000,000 |
|
|
|
|
|
|
Capital Paid |
670,000,000 |
670,000,000 |
670,000,000 |
|
Retained Earnings: Appropriated for Statutory Reserve |
36,466,715 |
27,968,294 |
27,968,294 |
|
Unappropriated |
905,457,777 |
1,054,748,206 |
805,480,828 |
|
Other Components of Shareholders’ Equity |
233,319,207 |
233,319,207 |
291,649,009 |
|
Total Shareholders' Equity |
1,845,243,699 |
1,986,035,707 |
1,795,098,131 |
|
Total Liabilities & Shareholders' Equity |
2,574,986,824 |
2,969,521,981 |
2,756,491,316 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Sales Income |
2,211,719,172 |
2,384,325,954 |
2,656,792,874 |
|
Other Income |
|
|
|
|
Interest Income |
19,760,506 |
18,598,622 |
23,611,803 |
|
Gain on Exchange Rate |
- |
39,268,980 |
- |
|
Compensation from
Flood Damage |
- |
149,087,283 |
- |
|
Others |
9,583,516 |
10,170,026 |
7,819,338 |
|
Total Revenues |
2,241,063,194 |
2,601,450,865 |
2,688,224,015 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,102,314,141 |
2,212,696,256 |
2,560,863,920 |
|
Selling Expenses |
19,991,937 |
22,031,890 |
25,054,539 |
|
Administrative Expenses |
98,598,209 |
110,472,067 |
70,872,512 |
|
Other Expenses Reversal of
Allowance for Doubtful Accounts |
[25,879,413] |
[14,317,000] |
[55,179,693] |
|
Loss on
Impairment of Investments |
- |
- |
15,879,805 |
|
Loss on
Disposal of Long-term Investment |
- |
- |
2,067,207 |
|
Total Expenses |
2,195,024,874 |
2,330,883,213 |
2,619,558,290 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
46,038,320 |
270,567,652 |
68,665,725 |
|
Financial Cost |
[19,254,571] |
[21,484,159] |
[27,576,016] |
|
Profit / [Loss] before Income
Tax |
26,783,749 |
249,083,493 |
41,089,709 |
|
Income Tax |
[5,938,067] |
[53,854,293] |
[40,578,695] |
|
|
|
|
|
|
Net Profit / [Loss] |
20,845,682 |
195,229,200 |
511,014 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.26 |
2.12 |
1.94 |
|
QUICK RATIO |
TIMES |
1.66 |
1.52 |
1.19 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.18 |
4.62 |
5.86 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.86 |
0.80 |
0.96 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
66.09 |
81.86 |
91.32 |
|
INVENTORY TURNOVER |
TIMES |
5.52 |
4.46 |
4.00 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
81.09 |
101.58 |
56.81 |
|
RECEIVABLES TURNOVER |
TIMES |
4.50 |
3.59 |
6.43 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
12.61 |
21.03 |
16.79 |
|
CASH CONVERSION CYCLE |
DAYS |
134.57 |
162.42 |
131.34 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
95.05 |
92.80 |
96.39 |
|
SELLING & ADMINISTRATION |
% |
5.36 |
5.56 |
3.61 |
|
INTEREST |
% |
0.87 |
0.90 |
1.04 |
|
GROSS PROFIT MARGIN |
% |
6.27 |
16.30 |
4.79 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.08 |
11.35 |
2.58 |
|
NET PROFIT MARGIN |
% |
0.94 |
8.19 |
0.02 |
|
RETURN ON EQUITY |
% |
1.13 |
9.83 |
0.03 |
|
RETURN ON ASSET |
% |
0.81 |
6.57 |
0.02 |
|
EARNING PER SHARE |
BAHT |
3.11 |
29.14 |
0.08 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.28 |
0.33 |
0.35 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.40 |
0.50 |
0.54 |
|
TIME INTEREST EARNED |
TIMES |
2.39 |
12.59 |
2.49 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(7.24) |
(10.26) |
|
|
OPERATING PROFIT |
% |
(82.98) |
294.04 |
|
|
NET PROFIT |
% |
(89.32) |
38,104.28 |
|
|
FIXED ASSETS |
% |
2.56 |
13.87 |
|
|
TOTAL ASSETS |
% |
(13.29) |
7.73 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -7.24%. Turnover has decreased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
6.27 |
Impressive |
Industrial Average |
0.47 |
|
Net Profit Margin |
0.94 |
Satisfactory |
Industrial Average |
0.95 |
|
Return on Assets |
0.81 |
Acceptable |
Industrial Average |
1.51 |
|
Return on Equity |
1.13 |
Deteriorated |
Industrial Average |
3.65 |
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 6.27%. 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 0.94%.
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 0.81%.
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 1.13%.
Trend of the average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
2.26 |
Impressive |
Industrial Average |
1.36 |
|
Quick Ratio |
1.66 |
|
|
|
|
Cash Conversion Cycle |
134.57 |
|
|
|
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 2.26 times in 2013, increased from 2.12 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 1.66 times in 2013,
increased from 1.52 times, although excluding inventory so the company still
have good short-term financial strength.
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 135 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.28 |
Impressive |
Industrial Average |
0.56 |
|
Debt to Equity Ratio |
0.40 |
Impressive |
Industrial Average |
1.27 |
|
Times Interest Earned |
2.39 |
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 2.4 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 0.28 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 Downtrend
Times Interest Earned Stable
ACTIVITY : IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.18 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.86 |
Acceptable |
Industrial Average |
1.60 |
|
Inventory Conversion Period |
66.09 |
|
|
|
|
Inventory Turnover |
5.52 |
Impressive |
Industrial Average |
5.46 |
|
Receivables Conversion Period |
81.09 |
|
|
|
|
Receivables Turnover |
4.50 |
Impressive |
Industrial Average |
4.14 |
|
Payables Conversion Period |
12.61 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.50 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 82 days at the
end of 2012 to 66 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 4.46 times in year 2012 to 5.52 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.86 times and 0.8
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 Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.75 |
|
|
1 |
Rs.100.07 |
|
Euro |
1 |
Rs.77.95 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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.