MIRA INFORM REPORT
|
Report Date : |
16.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
SIAM STEEL
SYNDICATE PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
31st Floor,
Italian-Thai Building,
2034/132 New Petchburi
Road, Bangkapi, Huaykwang, Bangkok 10310 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
20.11.1984 |
|
|
|
|
Com. Reg. No.: |
0107550000181 [Former :
0105527041231] |
|
|
|
|
Legal Form : |
Public
Limited Company |
|
|
|
|
Line of Business : |
Engaged in manufacturing and
distributing various types
of steels such
as round bar
with sizes ranging
from 6-25 millimeters and
deformed bar with
sizes ranging from
10-40 millimeters, as
well as steel wire
rods, rectangular and
square tubes, and round pipes, under
its own brand
“SSS”, supplying to
industrial plants and construction industry |
|
|
|
|
No. of Employees : |
432 |
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 |
|
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
SIAM
STEEL SYNDICATE PUBLIC
COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 31st FLOOR,
ITALIAN-THAI BUILDING,
2034/132 NEW
PETCHBURI ROAD, BANGKAPI,
HUAYKWANG, BANGKOK
10310, THAILAND
TELEPHONE : [66] 2716-1586-90
FAX :
[66] 2716-1580-2
E-MAIL
ADDRESS : sssbkk@sss.in.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1984
REGISTRATION
NO. : 0107550000181 [Former : 0105527041231]
TAX
ID NO. : 3101058246
CAPITAL REGISTERED : BHT. 672,427,210
CAPITAL PAID-UP : BHT.
592,427,210
SHAREHOLDER’S PROPORTION : THAI
:
98.24%
FILIPINO :
1.76%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. CHARAT CHAROENSAP,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 432
LINES
OF BUSINESS : STEEL PIPES
AND RELATED PRODUCTS
MANUFACTURER AND
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 November 20,
1984 as a
private limited company under
the registered name “Siam Steel
Syndicate Co., Ltd.,”
by Thai groups.
On November 26,
2007, the subject’s status was
converted to a
public limited company under
the name SIAM
STEEL SYNDICATE PUBLIC
COMPANY LIMITED. The
subject’s business objective
is to manufacture
wide range of
steel pipes. It
currently employs 432
staff.
The
subject also achieved
ISO 9001 Quality System Certification.
The subject’s registered address
is 31st Flr.,
Italian-Thai Building, 2034/132
New Petchburi Rd., Bangkapi, Huaykwang, Bangkok 10310,
and this is the subject’s
current operation address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Visuth Jirathiyut |
[x] |
Thai |
62 |
|
Mr. Charat Charoensap |
[x] |
Thai |
60 |
|
Mr. Tawee Limpongpan |
[x] |
Thai |
63 |
|
Mr. Thoranis Karnasuta |
|
Thai |
24 |
|
Mrs. Pilaichit Ruenpitaya |
[x] |
Thai |
65 |
|
Mr. Chartchai Chutima |
[x] |
Thai |
54 |
|
Mr. Pinyo Meechumna |
|
Thai |
59 |
|
Mr. Premchai Karnasuta |
[x] |
Thai |
59 |
|
Mrs. Nijaporn Charanachitta |
[x] |
Thai |
63 |
|
Mrs. Orn-anong Amartayakul |
|
Thai |
78 |
|
Mr. Thanakorn Parisawong |
|
Thai |
62 |
|
Mrs. Panpaka Chonnapasatit |
|
Thai |
64 |
AUTHORIZED
PERSON
Two of the
mentioned directors [x]
can jointly sign
on behalf of the subject
with
company’s affixed.
MANAGEMENT
Mr. Charat Charoensap is
the Managing Director.
He is Thai
nationality with the
age of 60
years old.
Mr. Preecha Buranawattana is
the Sales & Marketing Manager.
He is Thai
nationality.
Mr. Boonlum Sriphichai is
the General Manager.
He is Thai
nationality with the
age of 65
years old.
Mr. Roongroj Sujjavongcharoen is
the Plant Manager.
He is Thai
nationality.
Mr. Pitsanu Charoensomsak is
the Melt Shop Manager.
He is Thai
nationality.
Mr. Virush Rujivipat is
the Accounting and
Financial Manager.
He is Thai
nationality.
Mr. Thana Suthiopad is
the Quality Assurance
Manager.
He is Thai
nationality.
BUSINESS
OPERATIONS
The subject is
engaged in manufacturing
and distributing various
types of steels
such as round
bar with sizes
ranging from 6-25 millimeters
and deformed bar
with sizes ranging
from 10-40 millimeters,
as well as steel wire rods,
rectangular and square tubes, and round pipes, under
its own brand
“SSS”, supplying to
industrial plants and construction
industry.
PRODUCTION CAPACITY
180,000 tons per
annum
PURCHASE
80% of raw
material is purchased
from local suppliers,
the remaining 20%
is imported from
India, Taiwan, Hong Kong,
Singapore, Australia and
Republic of China.
SALES
100% of the
products is sold
locally by wholesale
to dealers, manufacturer,
construction contractors and
end-users.
MAJOR CUSTOMER
Italian Thai Development
Public Company Limited
RELATED AND AFFILIATED
COMPANIES
Asia Steel Products
Co., Ltd.
Business Type :
Importer and distributor
of steel pipes
Thai Nippon Steel Co.,
Ltd.
Business Type :
Manufacturer of oil
ring fabrication
Bangkok Steel Wire
Co., Ltd.
Business Type :
Manufacturer of wire
spooling and coiling
LITIGATION
Bankruptcy and Receivership
On June 24, 2002, the Central
Bankruptcy Court has
ordered the company
to rehabilitate its
organization. On July
9, 2003, the
Court has approved
the company’s rehabilitation plan
and appointed SSS
Planner Co., Ltd.,
as the Plan
Administrator. However, the
plan was operated
completely in 2005.
Others
There are no
legal suits filed
against the subject
according 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
or T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Silom Branch,
Silom Rd., Suriyawongse,
Bangrak, Bangkok]
Krung Thai Bank
Public Co., Ltd.
[Head Office,
35 Sukhumvit Rd.,
Klongtoeynua, Wattana, Bangkok]
Bank of Ayudhya
Public Co., Ltd.
[Sukhumvit Branch,
Sukhumvit Rd., Klongtoeynua,
Wattana, Bangkok]
Kasikornbank Public Co.,
Ltd.
[Head Office,
1 Kasikorn Lane,
Rajburana Rd., Rajburana, Bangkok]
EMPLOYMENT
The
subject currently employs
432 office staff
and factory workers.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Factory
is located at:
-
211 Moo 6,
Taiban Rd., Taiban,
Muang, Samutprakarn 10280.
Tel
: [66] 2703-5152,
Fax. : [66] 2173-9001
Total Factory Area
: 115,200 square
meters.
COMMENT
Siam Steel Syndicate produces steel products for
use in various industries. Its
productions offerings
include round and
deformed bars, steel wire rods, rectangular and square
tubes, and round pipes. An affiliate of Italian-Thai
Development, Siam Steel Syndicate was established in
1984 and has
since become a leading producer of steel products in Thailand.
The achievement
of the internationally recognized
ISO 9001 Quality System
Certification is a clear indication of
the company's commitment
towards customers' satisfaction.
Economy
sluggish and industrial
slowdown have resulted
to a low performance in
the year 2013.
Despite the economy
has slow recovery
the subject still retains
a solid business
this year.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 100,000,000
divided into 1,000,000 shares
of Bht. 100
each.
The
capital was increased
later as following:
Bht. 120,000,000
on December
26, 1989
Bht. 300,000,000
on December
22, 1992
Bht. 400,000,000
on August
18, 1994
Bht. 500,000,000
on December
25, 1995
The
latest registered capital
was increased to
Bht. 672,427,210 divided into
672,427,210 shares of
Bht. 1 each,
with the current
capital paid-up at
Bht. 592,427,210.
MAIN
SHAREHOLDERS : [as
at April 28,
2014] at Bht.
592,427,210 of capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Premchai Karnasuta Nationality: Thai Address : 12/3
Soi Soonvijai 3,
Bangkapi,
Huaykwang, Bangkok |
223,531,930 |
37.73 |
|
Mr. Yuthachai Jaranachit Nationality: Thai Address : 10
Soi Soonvijai 3,
Bangkapi, Huaykwang, Bangkok |
83,663,300 |
14.12 |
|
Ms. Valaithip Jaranachit Nationality: Thai Address : 10
Soi Soonvijai 3,
Bangkapi,
Huaykwang, Bangkok |
83,663,270 |
14.12 |
|
Ms. Chitraphan Jaranachit Nationality: Thai Address : 10
Soi Soonvijai 3,
Bangkapi,
Huaykwang, Bangkok |
83,663,270 |
14.12 |
|
Mr. Jariya Wongthuaythong Nationality: Thai Address : 94/2
Phahoyothin Rd., Samsennai,
Phyathai, Bangkok |
22,609,710 |
3.82 |
|
Mr. Thoranis Karnasuta Nationality: Thai Address : 12/3
Soi Soonvijai 3,
Bangkapi,
Huaykwang, Bangkok |
21,798,030 |
3.68 |
|
Mr. Piti Karnasuta Nationality: Thai Address : 12/3
Soi Soonvijai 3,
Bangkapi,
Huaykwang, Bangkok |
12,720,640 |
2.15 |
|
Ms. Prachaya Karnasuta Nationality: Thai Address : 12/3
Soi Soonvijai 3,
Bangkapi,
Huaykwang, Bangkok |
12,720,640 |
2.15 |
|
Others |
48,056,420 |
8.11 |
Total Shareholders : 29
Share Structure [as
at April 28,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
26 |
582,012,210 |
98.24 |
|
Foreign-Filipino |
3 |
10,415,000 |
1.76 |
|
Total |
29 |
592,427,210 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Somkid Tiatrakul No.
2785
BALANCE
SHEET [BAHT]
The
latest financial figures
published for December
31, 2013, 2012 &
2011 were:
ASSETS
|
Current Assets |
2013 |
2012 [Adjusted] |
2011 [Adjusted] |
|
|
|
|
|
|
Cash and Cash Equivalents |
391,749,270 |
310,304,249 |
92,424,199 |
|
Trade Accounts Receivable - Other
Company |
206,516,611 |
462,263,188 |
222,199,715 |
|
- Related
Company |
31,938,351 |
106,489,631 |
141,609 |
|
Inventories |
726,525,144 |
465,208,996 |
762,821,324 |
|
Prepaid Raw Material |
9,049,344 |
633,860 |
599,253 |
|
Other Receivable -
Related Company |
33,015 |
153,556 |
282,088 |
|
Refundable Value Added Tax |
18,418,907 |
- |
7,038,054 |
|
Other Current Assets
|
6,315,515 |
4,634,490 |
4,375,744 |
|
|
|
|
|
|
Total Current Assets
|
1,390,546,157 |
1,349,687,970 |
1,089,881,986 |
|
Investment in Associated
& Related Company |
31,735,800 |
31,735,800 |
12,776,702 |
|
Fixed Assets |
925,264,099 |
970,016,143 |
1,011,841,471 |
|
Deferred Computer Software |
3,126,515 |
3,555,399 |
3,813,243 |
|
Other Non-current Assets |
1,002,800 |
1,257,972 |
946,900 |
|
Total Assets |
2,351,675,371 |
|
2,119,260,302 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 [Adjusted] |
2011 [Adjusted] |
|
|
|
|
|
|
Short-term Loam from Bank |
201,146,990 |
133,505,241 |
358,671,256 |
|
Trade Accounts Payable
- Other
Company |
154,304,500 |
111,257,822 |
99,505,789 |
|
- Related
Company |
13,826,472 |
7,265,277 |
18,487,871 |
|
Other Payable - Related Company |
426,039 |
917,440 |
704,366 |
|
Current Portion of
Long-term Loan |
58,400,000 |
67,700,000 |
18,200,000 |
|
Reserve for Liabilities
from Employee Benefits |
19,937,702 |
1,737,974 |
7,492,617 |
|
Advance Income from
Customers |
99,632,520 |
190,234,164 |
96,017,179 |
|
Accrued Value Added
Tax |
- |
15,061,996 |
- |
|
Accrued Income Tax |
7,455,989 |
- |
992,273 |
|
Accrued Employees’ Remuneration |
22,380,993 |
15,730,006 |
14,557,689 |
|
Accrued Utilities &
Other Expenses |
30,926,444 |
27,171,670 |
20,876,892 |
|
Other Current Liabilities |
1,894,869 |
2,349,709 |
2,846,407 |
|
|
|
|
|
|
Total Current Liabilities |
610,332,518 |
572,931,299 |
638,352,339 |
|
Long-term Loan |
218,600,000 |
277,000,000 |
- |
|
Reserve for Liabilities
from Employee Benefits -
Net |
88,074,614 |
100,065,879 |
93,957,637 |
|
Deferred Income Tax Liabilities |
84,206,768 |
85,030,080 |
76,100,280 |
|
Total Liabilities |
1,001,213,900 |
1,035,027,258 |
808,410,256 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1
par value Authorized &
issued share capital 672,427,210 shares |
672,427,210 |
672,427,210 |
672,427,210 |
|
|
|
|
|
|
Capital Paid |
592,427,210 |
592,427,210 |
592,427,210 |
|
Retained Earning Appropriated for
Statutory Reserve
|
67,242,721 |
67,242,721 |
67,242,721 |
|
Unappropriated |
254,791,540 |
225,556,095 |
215,180,115 |
|
Other Components of
Shareholders’ Equity |
436,000,000 |
436,000,000 |
436,000,000 |
|
Total Shareholders' Equity |
1,350,461,471 |
1,321,226,026 |
1,310,850,046 |
|
Total Liabilities &
Shareholders' Equity |
2,351,675,371 |
2,356,253,284 |
2,119,260,302 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
3,352,476,759 |
3,696,459,308 |
3,172,686,978 |
|
Interest Income |
6,153,045 |
986,390 |
- |
|
Other Income |
4,128,915 |
1,536,300 |
5,360,446 |
|
Refundable on Doubtful
Account |
1,050,000 |
5,350,000 |
- |
|
Reversal on Loss
from Diminution of Investment in
Related Company |
- |
31,735,800 |
- |
|
Total Revenues |
3,363,808,719 |
3,736,067,798 |
3,178,047,424 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
3,217,156,669 |
3,617,816,782 |
3,082,603,188 |
|
Selling Expenses |
7,855,833 |
7,622,733 |
5,073,671 |
|
Administrative Expenses |
40,028,469 |
37,350,395 |
40,068,893 |
|
Loss on Diminution
of Investment in Associated Company |
- |
12,776,702 |
27,223,298 |
|
Financial Expenses |
25,730,264 |
41,195,406 |
30,825,984 |
|
Total Expenses |
3,290,771,235 |
3,716,762,018 |
3,185,795,034 |
|
|
|
|
|
|
Profit before Income
Tax |
73,037,484 |
19,305,780 |
[7,747,610] |
|
Income Tax |
[13,588,251] |
[8,929,800] |
[5,538,452] |
|
|
|
|
|
|
Net Profit / [Loss] |
59,449,233 |
10,375,980 |
[13,286,062] |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.28 |
2.36 |
1.71 |
|
QUICK RATIO |
TIMES |
1.03 |
1.53 |
0.49 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.62 |
3.81 |
3.14 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.43 |
1.57 |
1.50 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
82.43 |
46.93 |
90.32 |
|
INVENTORY TURNOVER |
TIMES |
4.43 |
7.78 |
4.04 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
22.48 |
45.65 |
25.56 |
|
RECEIVABLES TURNOVER |
TIMES |
16.23 |
8.00 |
14.28 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
17.51 |
11.22 |
11.78 |
|
CASH CONVERSION CYCLE |
DAYS |
87.41 |
81.36 |
104.10 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
95.96 |
97.87 |
97.16 |
|
SELLING & ADMINISTRATION |
% |
1.43 |
1.22 |
1.42 |
|
INTEREST |
% |
0.77 |
1.11 |
0.97 |
|
GROSS PROFIT MARGIN |
% |
4.37 |
3.20 |
3.01 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.18 |
0.52 |
(0.24) |
|
NET PROFIT MARGIN |
% |
1.77 |
0.28 |
(0.42) |
|
RETURN ON EQUITY |
% |
4.40 |
0.79 |
(1.01) |
|
RETURN ON ASSET |
% |
2.53 |
0.44 |
(0.63) |
|
EARNING PER SHARE |
BAHT |
0.10 |
0.02 |
(0.02) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.43 |
0.44 |
0.38 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.74 |
0.78 |
0.62 |
|
TIME INTEREST EARNED |
TIMES |
2.84 |
0.47 |
(0.25) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(9.31) |
16.51 |
|
|
OPERATING PROFIT |
% |
278.32 |
(349.18) |
|
|
NET PROFIT |
% |
472.95 |
178.10 |
|
|
FIXED ASSETS |
% |
(4.61) |
(4.13) |
|
|
TOTAL ASSETS |
% |
(0.19) |
11.18 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -9.31%. Turnover has decreased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
4.37 |
Deteriorated |
Industrial Average |
17.61 |
|
Net Profit Margin |
1.77 |
Impressive |
Industrial Average |
0.95 |
|
Return on Assets |
2.53 |
Impressive |
Industrial Average |
1.35 |
|
Return on Equity |
4.40 |
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 4.37%. 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. Net Profit Margin ratio is 1.77%,
higher figure when compared with those of its average competitors in the same
industry, indicated that business was an efficient operators 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
2.53%, 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 4.4%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profit in a
dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
2.28 |
Impressive |
Industrial Average |
1.26 |
|
Quick Ratio |
1.03 |
|
|
|
|
Cash Conversion Cycle |
87.41 |
|
|
|
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 2.28 times in 2013, decrease from 2.36 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 1.03 times in 2013,
decrease from 1.53 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 88 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.43 |
Impressive |
Industrial Average |
0.81 |
|
Debt to Equity Ratio |
0.74 |
Impressive |
Industrial Average |
2.15 |
|
Times Interest Earned |
2.84 |
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 2.84 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 0.43 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 |
3.62 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.43 |
Satisfactory |
Industrial Average |
1.73 |
|
Inventory Conversion Period |
82.43 |
|
|
|
|
Inventory Turnover |
4.43 |
Satisfactory |
Industrial Average |
4.83 |
|
Receivables Conversion Period |
22.48 |
|
|
|
|
Receivables Turnover |
16.23 |
Impressive |
Industrial Average |
9.42 |
|
Payables Conversion Period |
17.51 |
|
|
|
The company's Account Receivable Ratio is calculated as 16.23 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 47 days at the
end of 2012 to 82 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 7.78 times in year 2012 to 4.43 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.43 times and 1.57
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.61.10 |
|
|
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.77.68 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
PDT |
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.