MIRA
INFORM REPORT
|
Report Date : |
02.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
USHA SIAM STEEL
INDUSTRIES PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
101/46 Moo
20, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
22.05.1980 |
|
|
|
|
Com. Reg. No.: |
0107540000022 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturing,
distributing and exporting
wide range of
steel wires, rods
and cables products.
Ranges of products
include industrial wires,
industrial strands, GAC / control cables,
PVC coated ropes,
gondola ropes and
wire ropes. |
|
|
|
|
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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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
USHA
SIAM STEEL INDUSTRIES
PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 101/46 MOO
20, PHAHOLYOTHIN ROAD,
T.
KLONGNUENG, A. KLONGLUANG,
PATHUMTHANI 12120,
THAILAND
TELEPHONE : [66] 2529-1167-8,
2529-1088
FAX :
[66] 2529-1066
E-MAIL
ADDRESS : usha-ussil@ushasiam.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1980
REGISTRATION
NO. : 0107540000022 [Former : 0105523008647]
TAX
ID NO. : 3101151756
CAPITAL REGISTERED : BHT. 143,000,000
CAPITAL PAID-UP : BHT.
143,000,000
SHAREHOLDER’S PROPORTION : FOREIGN
: 100%
FISCAL YEAR CLOSING DATE : MARCH 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
AMOGH KUMAR SHARMA,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 480
LINES
OF BUSINESS : INDUSTRIAL WIRES,
ROPES 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
formed on May
22, 1980 originally
as a private
limited company under
the registered name “Usha Siam
Steel Industries Co.,
Ltd.”, by Indian
and other Foreign groups. On
February 24, 1997,
the subject’s status
was converted to
a public company,
namely USHA SIAM
STEEL INDUSTRIES PUBLIC
COMPANY LIMITED. Its
business objective is
to manufacture and distribute
wide range of
steel wires, industrial
strands control cables
and wire ropes for
various industries to
both domestic and
international markets under
promotional privileges from
the Board of Investment (BOI), Thailand. It
currently employs approximately
480 staff.
The
subject is a
subsidiary of Usha
Martin Limited in
India, one of the
most renowned conglomerates in the
world, engaged in
steel, steel wire
ropes, telecommunications, engineering,
infrastructure, software and
services, as well
as machinery manufacture.
The subject
was awarded ISO 9001:1994
in 1994 and
ISO 9001:2000 in 2003.
The
subject’s registered address
was initially at
11th Flr., Mahatun
Plaza Bldg., 888/116
Ploenchit Rd., Lumpini,
Pathumwan, Bangkok 10330.
On
May 8, 2007
the subject’s registered address
was relocated to 101/46
Moo 20, Phaholyothin
Rd., T. Klongnueng, A.
Klongluang, Pathumthani 12120,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Brij Kishore Jhawar |
|
Indian |
77 |
|
Mr. Rajeev Jhawar |
[x] |
Indian |
50 |
|
Mr. Amogh Kumar Sharma |
[x] |
Indian |
66 |
|
Mr. Pravin Kumar Jain |
|
Indian |
60 |
|
Mr. Praveen Kumar
Singh |
[x] |
|
47 |
AUTHORIZED PERSON
Any two of
the mentioned directors
[x] can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Amogh Kumar Sharma
is the Managing
Director.
He is Indian
nationality with the
age of 66
years old.
Mr. Praveen Kumar
Singh is the Deputy
Managing Director.
He is Indian
nationality with the
age of 47
years old.
Mr. Sombat Pringkasemchai is
the Factory Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged manufacturing, distributing
and exporting wide
range of steel
wires, rods and
cables products. Ranges
of products include
industrial wires, industrial
strands, GAC / control cables,
PVC coated ropes,
gondola ropes and
wire ropes.
PRODUCTION CAPACITY
36,000 tons per
annum
PURCHASE
Raw materials such as
steel wire, chemical
and etc. are
purchased from suppliers in
both domestic and
overseas, mainly Japan,
India, Republic of
China, Singapore and
Australia.
MAJOR
SUPPLIERS
Usha
Martin Limited : India
Thasco
Chemicals Co., Ltd. : Thailand
V. Chemical
Co., Ltd. :
Thailand
SALES
60% of the
products is sold
locally by wholesale
to manufacturers and
end-users, the remaining
40% is exported
to Japan, Singapore,
India, Hong Kong,
Taiwan, U.S.A., Australia,
New Zealand, Malaysia,
South Africa, and
the countries in
Europe and Middle
East.
SUBSIDIARY AND AFFILIATED
COMPANY
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
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 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
T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
The Siam Commercial
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
480 staff.
LOCATION
DETAILS
The
premise is rented
for operating head
office, Factory I
and warehouse at
the heading address.
Premise is located
in provincial, on the outskirts of
Bangkok.
Factory /Warehouse :
Factory
I : 101/46
Moo 2, Navanakorn
Industrial Estate, T.
Klongnueng,
A.
Klongluang,
Pathumthani 12120.
Factory
II : 101/16
Moo 2, Navanakorn
Industrial Estate, T.
Klongnueng,
A.
Klongluang, Pathumthani 12120.
Bangkok
office is located
at 22nd Floor,
Unit 3/1, K-Tower
B,
209/1
Sukhumvit 21 Road [Asoke],
Klongtoeynua, Wattana, Bangkok
10110.
Tel.:
[66] 2261-7361-4, Fax:
[66] 2640-8227.
COMMENT
Over
the years, the
subject has experienced
continuous growth and
development in many fields.
The subject takes
pride in its
receipt of numerous awards
and certificates. The
attainment of the
awards shows that
the company has
strong commitment to
provide world-class products
and services, and
meet internationally recognized standards, as well
as enhance the
reputation of Thai manufactured
products around the
world.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht.
90,000,000 divided into
900,000 shares of
Bht.
100 each.
The
capital was increased
and increased later
as following:
Bht. 140,000,000
on October 17,
1989
Bht. 240,000,000
on June 30, 1995
Bht. 60,000,000
on November 8,
1995 [decreased]
Bht. 90,000,000
on July 9,
1996 [increased]
Bht. 143,000,000
on February 24,
1997
The
latest registered capital
was increased to
Bht. 143,000,000 divided into
14,300,000 shares of
Bht. 10 each
with fully paid.
MAIN
SHAREHOLDERS : [as
at July 15,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Usha Martin Limited Nationality: Indian Address : Kolkata,
India |
13,199,986 |
92.31 |
|
Usha Martin Singapore
Pte. Ltd. Nationality: Singaporean Address : 53
Shipyard Road, Singapore
|
810,405 |
5.67 |
|
Tesac Wire Rope
Co., Ltd. Nationality: Japanese Address : Osaka, Japan
|
289,595 |
2.02 |
|
Other Shareholders |
14 |
- |
Total Shareholders : 17
Share Structure [as
at July 15,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
17 |
14,300,000 |
100.00 |
|
Total |
17 |
14,300,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Akaradej Pleansakul No.
5389
BALANCE SHEET [BAHT]
The
latest financial figures
published for March
31, 2014, 2013
& 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 [Adjusted] |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents
|
18,200,967 |
31,989,178 |
254,224,095 |
|
Trade Accounts Receivable - Related
Company |
232,461,970 |
101,594,266 |
13,679,366 |
|
- Others |
137,261,785 |
187,780,912 |
74,105,276 |
|
Inventories |
320,372,350 |
351,538,023 |
195,166,392 |
|
Land for Sale |
- |
47,597,500 |
- |
|
Other Current Assets
- Value
Added Tax |
6,015,956 |
4,555,494 |
1,182,786 |
|
- Compensation Receivable
|
790,000 |
131,790,000 |
31,400,000 |
|
- Others |
5,104,765 |
6,375,440 |
9,809,390 |
|
|
|
|
|
|
Total Current Assets
|
720,207,793 |
863,220,813 |
579,567,305 |
|
Cash at Bank
under Restriction |
15,376,296 |
28,809,563 |
38,710,866 |
|
Investment in Joint
Venture |
124,999,900 |
74,999,940 |
- |
|
Fixed Assets |
534,567,514 |
516,539,099 |
301,578,987 |
|
Surplus on Assets
Appraisal |
148,106,333 |
170,241,029 |
207,381,735 |
|
Non-operating Land |
- |
- |
2,010,000 |
|
Deferred Income Tax Assets |
10,464,045 |
10,444,885 |
- |
|
Other Non-current Assets
- Advance
Payment for Machinery
& Equipment |
- |
7,068,413 |
27,878,599 |
|
- Others |
5,599,805 |
4,552,671 |
3,653,819 |
|
Total Assets |
1,559,321,686 |
1,675,876,413 |
1,160,781,311 |
LIABILITIES & SHAREHOLDERS' EQUITY
[BAHT]
|
Current
Liabilities |
2014 |
2013 [Adjusted] |
2012 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institution |
480,946,535 |
392,046,691 |
128,869,797 |
|
Trade Accounts Payable - Parent
Company |
86,800,669 |
207,374,802 |
174,304,641 |
|
- Other
Company |
61,506,180 |
23,431,390 |
23,191,782 |
|
Current Portion of
Finance Lease Contract &
Hire-purchase Contract Liabilities |
908,616 |
1,048,468 |
431,126 |
|
Current Portion of
Long-term Loans |
26,149,828 |
97,279,240 |
67,250,920 |
|
Current Portion of
Long-term Loans From Parent Company |
50,000,000 |
- |
- |
|
Accrued Income Tax |
6,580,596 |
2,896,756 |
932,964 |
|
Advance Income from
Land available for Sale |
- |
47,597,500 |
- |
|
Accrued Expenses &
Other Current Liabilities |
57,284,044 |
43,933,540 |
54,080,626 |
|
|
|
|
|
|
Total Current Liabilities |
770,176,465 |
815,608,387 |
449,061,856 |
|
Finance Lease Contract
& Hire-purchase Contract Liabilities
- Net |
485,892 |
736,186 |
151,502 |
|
Long-term Loan from Financial Institution - Net |
41,052,028 |
82,357,783 |
151,337,283 |
|
Long-term Loan from Parent Company |
- |
50,000,000 |
50,000,000 |
|
Liabilities from Employee
Benefit after Leaving |
43,845,587 |
44,212,229 |
44,763,182 |
|
Deferred Liabilities Income Tax |
29,621,266 |
59,548,206 |
- |
|
Total Liabilities |
885,181,238 |
1,052,462,791 |
695,313,823 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid
share capital
14,300,000 shares |
143,000,000 |
143,000,000 |
143,000,000 |
|
|
|
|
|
|
Capital Paid |
143,000,000 |
143,000,000 |
143,000,000 |
|
Premium on Share Capital |
118,052,025 |
118,052,025 |
118,052,025 |
|
Retained Earning
Appropriated for
- Statutory Reserve
|
14,300,000 |
14,300,000 |
2,581,100 |
|
Unappropriated [Deficit] |
280,303,356 |
211,868,774 |
[5,547,372] |
|
Other Components of
Shareholders’ Equity |
118,485,067 |
136,192,823 |
207,381,735 |
|
Total Shareholders' Equity |
674,140,448 |
623,413,622 |
465,467,488 |
|
Total Liabilities &
Shareholders' Equity |
1,559,321,686 |
1,675,876,413 |
1,160,781,311 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 [Adjusted] |
2012 |
|
|
|
|
|
|
Sales |
1,333,327,833 |
1,104,886,318 |
1,016,968,060 |
|
Sales of Scrap &
Goods Defection |
22,694,604 |
26,646,574 |
26,548,308 |
|
Compensation Income |
87,961,956 |
245,000,000 |
124,000,000 |
|
Gain on Exchange
Rate |
- |
- |
5,530,254 |
|
Other Income |
6,931,959 |
3,839,555 |
1,324,643 |
|
Total Revenues |
1,450,916,352 |
1,380,372,447 |
1,174,371,265 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,214,355,606 |
963,856,235 |
926,538,962 |
|
Selling Expenses |
34,971,532 |
30,566,658 |
27,592,331 |
|
Administrative Expenses |
69,233,491 |
48,170,823 |
22,543,883 |
|
Loss on Exchange Rate |
4,685,845 |
[7,734,360] |
- |
|
Other Expenses |
- |
59,417,903 |
146,121,459 |
|
Financial Expenses |
35,466,437 |
28,330,015 |
15,375,640 |
|
Total Expenses |
1,358,712,911 |
1,122,607,274 |
1,138,172,275 |
|
|
|
|
|
|
Profit / [Loss] before Income Tax
|
92,203,441 |
257,765,173 |
36,198,990 |
|
Income Tax |
[23,768,859] |
[32,997,691] |
[6,802,408] |
|
Net Profit / [Loss] |
68,434,582 |
224,767,482 |
29,396,582 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.94 |
1.06 |
1.29 |
|
QUICK RATIO |
TIMES |
0.50 |
0.45 |
0.76 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.49 |
2.11 |
3.09 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.86 |
0.66 |
0.88 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
96.29 |
133.12 |
76.88 |
|
INVENTORY TURNOVER |
TIMES |
3.79 |
2.74 |
4.75 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
37.58 |
62.03 |
26.60 |
|
RECEIVABLES TURNOVER |
TIMES |
9.71 |
5.88 |
13.72 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
18.49 |
8.87 |
9.14 |
|
CASH CONVERSION CYCLE |
DAYS |
115.38 |
186.28 |
94.34 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.08 |
87.24 |
91.11 |
|
SELLING & ADMINISTRATION |
% |
7.82 |
7.13 |
4.93 |
|
INTEREST |
% |
2.66 |
2.56 |
1.51 |
|
GROSS PROFIT MARGIN |
% |
17.74 |
37.70 |
24.37 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
6.92 |
23.33 |
3.56 |
|
NET PROFIT MARGIN |
% |
5.13 |
20.34 |
2.89 |
|
RETURN ON EQUITY |
% |
10.15 |
36.05 |
6.32 |
|
RETURN ON ASSET |
% |
4.39 |
13.41 |
2.53 |
|
EARNING PER SHARE |
BAHT |
4.79 |
15.72 |
2.06 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.57 |
0.63 |
0.60 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.31 |
1.69 |
1.49 |
|
TIME INTEREST EARNED |
TIMES |
2.60 |
9.10 |
2.35 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
20.68 |
8.65 |
|
|
OPERATING PROFIT |
% |
(64.23) |
612.08 |
|
|
NET PROFIT |
% |
(69.55) |
664.60 |
|
|
FIXED ASSETS |
% |
2.09 |
58.93 |
|
|
TOTAL ASSETS |
% |
(6.95) |
44.37 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is 20.68%. Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
17.74 |
Satisfactory |
Industrial
Average |
21.70 |
|
Net Profit Margin |
5.13 |
Impressive |
Industrial
Average |
1.12 |
|
Return on Assets |
4.39 |
Impressive |
Industrial
Average |
1.59 |
|
Return on Equity |
10.15 |
Impressive |
Industrial
Average |
4.57 |
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 17.74%. 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 5.13%,
higher figure when 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
4.39%, 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 10.15%, 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 : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.94 |
Risky |
Industrial Average |
1.54 |
|
Quick Ratio |
0.50 |
|
|
|
|
Cash Conversion Cycle |
115.38 |
|
|
|
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 0.94 times in 2014, decrease from 1.06 times, then the company may have
problems meeting its short-term obligations. 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 0.5 times in 2014,
decrease from 0.45 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 116 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.57 |
Impressive |
Industrial
Average |
1.00 |
|
Debt to Equity Ratio |
1.31 |
Impressive |
Industrial
Average |
2.64 |
|
Times Interest Earned |
2.60 |
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 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 2.6 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 0.57 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.49 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.86 |
Deteriorated |
Industrial
Average |
2.12 |
|
Inventory Conversion Period |
96.29 |
|
|
|
|
Inventory Turnover |
3.79 |
Acceptable |
Industrial
Average |
5.94 |
|
Receivables Conversion Period |
37.58 |
|
|
|
|
Receivables Turnover |
9.71 |
Satisfactory |
Industrial
Average |
11.58 |
|
Payables Conversion Period |
18.49 |
|
|
|
The company's Account Receivable Ratio is calculated as 9.71 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 133 days at the
end of 2013 to 96 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 2.74 times in year 2013 to 3.79 times
in year 2014.
The company's Total Asset Turnover is calculated as 0.86 times and 0.66 times
in 2014 and 2013 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.60.47 |
|
|
1 |
Rs.100.42 |
|
Euro |
1 |
Rs.79.39 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.