MIRA
INFORM REPORT
|
Report Date : |
13.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
VANACHAI GROUP PUBLIC COMPANY LIMITED |
|
|
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Registered Office : |
2/1
|
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|
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Country : |
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|
|
|
|
Financials (as on) : |
31.12.2013 |
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|
|
|
Date of Incorporation : |
23.02.1989 |
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|
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Com. Reg. No.: |
0107537002621 |
|
|
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|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged
in manufacturing and
distributing MDF board,
molded doorskin, laminated
MDF board, laminated
particleboard,
particleboard and laminate
flooring |
|
|
|
|
No. of Employees |
1,240 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
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) |
|
|
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 |
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
VANACHAI GROUP
PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 2/1
SUNANT BUILDING, PIBULSONGKRAM
ROAD,
BANGSUE, BANGKOK
10800, THAILAND
TELEPHONE : [66] 2585-4900-3,
2913-2180-9
FAX :
[66] 2587-0516,
2587-9556
E-MAIL
ADDRESS : vanachai@vanachai.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1989
REGISTRATION
NO. : 0107537002621 [Former: BOR
MOR JOR. 509]
TAX
ID NO. : 3101607932
CAPITAL REGISTERED : BHT. 1,425,839,127
CAPITAL PAID-UP : BHT.
1,305,839,127
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. WANTHANA JAROENNAWARAT, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 1,240
LINES
OF BUSINESS : MDF
BOARD AND DOORSKIN
PRODUCTS
MANUFACTURER AND
DISTRIBUTOR
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 February
23, 1989, originally as
a private limited
company under the registered
name “M.D.F. Planner Co.,
Ltd.” by Thai
groups, with the
business objective to
manufacture MDF board, doorskin and
laminate flooring products with
the promotional privileges
granted by Thailand’s
Board of Investment [BOI].
On
November 1, 1994,
the subject registered
for a conversion of
its status to
a public limited
company and changed
its name to be VANACHAI
GROUP PUBLIC COMPANY
LIMITED.
In 1995,
it was listed
on the Stock
Exchange of Thailand [SET] under
the symbol
“VNG”.
Subject
is also a holding
company of Vanachai
Group which engaged
in panel board
manufacturing and trading
business. It currently
employs approximately 1,240
staff.
The
subject’s registered address is
2/1 Sunant Bldg.,
Pibulsongkram Rd., Bangsue,
Bangkok 10800, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sompop Sahawat : Chairman |
[-] |
Thai |
62 |
|
Mr. Vasun Jaroennawarat |
|
Thai |
59 |
|
Mr. Wanthana Jaroennawarat |
[-] |
Thai |
54 |
|
Mr. Suebtrakul
Soonthornthum : Vice
Chairman |
|
Thai |
72 |
|
Mr. Suthep Chaipattanavanich |
|
Thai |
51 |
|
Mr. Nirun Suntipiromkul |
|
Thai |
61 |
|
Ms. Yupaporn Boongate :
Vice Chairman |
[x] |
Thai |
60 |
|
Mr. Nipon Wisityuthasart |
|
Thai |
75 |
|
Mr. Patta Sahawat |
[x] |
Thai |
42 |
|
Ms. Phattra Sahawat |
[x] |
Thai |
40 |
|
Mr. Somprasong Sahawat |
[-] |
Thai |
38 |
|
Pol. Gen. Wichean Potephosree |
|
Thai |
61 |
|
Pol. Gen. Soontorn Saikwan |
|
Thai |
70 |
|
Gen. Vichit Yathip |
|
Thai |
68 |
|
Mr. Kraithip Krairiksh |
|
Thai |
60 |
AUTHORIZED PERSON
One of the
mentioned directors [x] can jointly
sign with one of the
mentioned directors [-] on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Wanthana Jaroennawarat is
the Managing Director.
He is Thai
nationality with the
age of 54
years old.
Mr. Nirun Suntipiromkul is
the Deputy Managing
Director [Factory Plant Manager].
He is Thai
nationality with the
age of 61
years old.
Mr. Patta Sahawat is
the Deputy Managing
Director.
He is Thai
nationality with the
age of 42
years old.
Mrs. Siriporn
Chaipattanavanich is the
Executive Director.
She is Thai
nationality.
Ms. Phattra Sahawat is
the Assistant Managing
Director.
She is Thai
nationality with the
age of 40
years old.
Mr. Somprasong Sahawat is
the Assistant Managing
Director.
He is Thai
nationality with the
age of 38
years old.
Mr. Surapong Dumrisilp is
the Assistant Deputy
Managing Director.
He is Thai
nationality.
Mr. Phumsak Chunlawanlipha is
the Planning &
Development Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
and distributing MDF
board, molded doorskin,
laminated MDF board,
laminated particleboard, particleboard
and laminate flooring.
Subject is also
a holding company
and invests in
subsidiaries which engaged
in panel board
manufacturing and trading
business.
PRODUCTION CAPACITY
MDF Board :
360,000 cubic meters
per annum
Moulded Doorskin :
3,600,000 sheets
per annum
Laminate Flooring : 6,347,200
square meters per
annum
Particleboard : 60,000 square
meters per annum
PURCHASE
90% of raw
material mainly wood
fiber and chemical
are purchased from
local suppliers, the
remaining 10% including chemical,
parawood and wood
lumber are imported
from United States
of America, Sweden,
Singapore, Malaysia, Myanmar
and Australia.
MAJOR SUPPLIER
Vanachai Chemical Industries
Co., Ltd. : Thailand
SALES [LOCAL]
100% of the
products is sold
locally to Woodtex
International Co., Ltd.
[70%], and wholesalers
[30%].
MAJOR CUSTOMER
Woodtex International Co.,
Ltd.
REVENUE STRUCTURE [unit : million baht]
Company and Subsidiaries
|
Products |
2013 |
2012 |
||
|
|
Amount |
% |
Amount |
% |
|
MDF Board |
4,549.39 |
54 |
5,490.54 |
56 |
|
Particleboard |
2,235.40 |
26 |
2,717.40 |
28 |
|
Laminated MDF Board |
728.81 |
9 |
769.88 |
8 |
|
Molded Doorskins |
677.43 |
8 |
480.83 |
5 |
|
Laminated Flooring |
251.58 |
3 |
274.99 |
3 |
|
Rasins, Impregneted Papers and Others |
38.18 |
- |
33.00 |
- |
|
Total revenue |
8,480.79 |
100.00 |
9,766.64 |
100.00 |
SUBSIDIARY AND
AFFILIATED COMPANIES
Particle Planner Co.,
Ltd.
Business Type : Manufacturer
of particleboard
Investment : The
subject holds 99.99%
of the company’s
shares.
Vanachai Panel Industries
Co., Ltd.
Business Type : Manufacturer
of particleboard, MDF
board, laminate particleboard, and
laminate MDF board
Investment : The
subject holds 99.99%
of the company’s
shares.
Vanachai Chemical Industries
Co., Ltd.
Business Type : Manufacturer
of resin and melamine impregnated
paper for among
the
Vanachai Group sales
Investment : The
subject holds 99.99%
of the company’s
shares.
Woodtek International Co.,
Ltd.
Business Type : Operate
marketing business for
all products under
Vanachai Group Plc.
Investment : The
subject holds 99.97%
of the company’s
shares.
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
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.
[Head Office :
333 Silom Rd., Silom,
Bangrak, Bangkok]
Kasikornbank Public Co.,
Ltd.
[Head Office :
1 Kasikorn Lane,
Rajburana Rd., Rajburana,
Bangkok]
Krung Thai Bank
Public Co., Ltd.
[Head Office :
35 Suhumvit Rd.,
Klongtoeynua, Wattana, Bangkok]
TMB Bank Public
Co., Ltd.
[Head Office:
3000 Phaholyothin Rd.,
Chompol, Jatujak, Bangkok]
EMPLOYMENT
The
subject employs approximately
1,240 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
I is located
at 22/1 Banbung - Naunmok Rd.,
Banbung, Chonburi
Tel
: [66] 38
297-322-30 Fax: [66]
38 297-334
Factory
II is located
at 112 Kangkoi
Industrial Estate, Moo
1, T. Banthat,
A. Kaengkoi, Saraburi
province. Tel :
[66] 36 245-644
COMMENT
The
subject is engaged
in wood-base panel
productions which are used
as substitutes for
natural wood boards
in various industries
such as construction,
furniture, interior decoration,
electrical appliances manufacturing
and all modified
wood industries.
The
subject has emphasized
top quality of
products as compared
to the competitors.
Regarding to cost,
the maximum production
capacity has been
implemented. It is considered
as the company’s
strength in contending
with the competitors.
In
the year 2013
the global economic
fluctuations including the
economic difficulties facing
the US and
Europe and a
slowdown of the
Chinese economy, that
affect the overall
performance of the
Thai economy to
continue to slow
down from the
second half of 2012.
This made the subject’s
overall business performance
a net loss
of 220 million
baht.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 220,000,000
divided into 22,000
hares of Bht.
10,000 each.
The
capital was increased
later as following:
Bht. 285,000,000 on
October 16, 1991
Bht. 500,000,000 on
March 15, 1993
Bht. 1,000,000,000
on November 1,
1994
Bht. 1,420,000,000 in
2003
Bht. 1,426,666,667 in
2004
The
latest registered capital was decreased to Bht. 1,425,839,127 divided
into 1,425,839,127 shares
of Bht. 1 each,
with the current
capital paid-up at Bht.
1,305,839,127.
MAIN
SHAREHOLDERS : [as
at March 18,
2011] at Bht.
1,305,839,127 of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
The Vanachai Group
of Companies Co.,
Ltd. |
639,020,466 |
48.94 |
|
Mr. Sompop Sahawat |
54,999,933 |
4.21 |
|
Bangkok Bank Public
Co., Ltd. |
43,970,760 |
3.37 |
|
Mr. Somprasong Sahawat
|
27,500,000
|
2.11 |
|
Ms. Somjairak Sahawat |
27,500,000
|
2.11 |
|
Ms. Yupaporn Boongate |
27,499,966 |
2.11 |
|
Mr. Wanthana Jaroennawarat |
27,499,966 |
2.11 |
|
Mr. Vasun Jaroennawarat |
27,499,966 |
2.11 |
|
Mr. Patta Sahawat |
27,499,966 |
2.11 |
|
Ms. Phattra Sahawat |
27,499,966 |
2.11 |
|
Mrs. Siriporn Chaipattanavanich |
27,499,966 |
2.11 |
|
Mr. Anucha Kijthanamongkolchai |
21,930,000 |
1.68 |
|
Sinsaptawee Asset Management
Co., Ltd. |
19,005,300 |
1.46 |
|
Dr. Prasarn Kemakongkanond |
9,970,000 |
0.76 |
|
East Fourteen Limited-Dimensional Emer Mkts
Value FD |
8,446,600 |
0.65 |
|
Others |
288,496,272 |
22.05 |
Total Shareholders :
4,186
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Prapasri Leelasupa No. 4664
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 [Restated] |
2011 |
|
|
|
|
|
|
Cash and cash
equivalents |
157,877,994.26 |
177,546,697.35 |
46,284,904.40 |
|
Trade and other
receivable |
560,612,400.52 |
552,185,675.16 |
53,155,715.22 |
|
Revenue department receivable |
11,732,111.88 |
11,139,002.39 |
473,899,377.98 |
|
Inventories |
440,144,405.23 |
487,753,738.09 |
32,096,984.03 |
|
Maintenance supplies |
138,015,867.94 |
116,956,013.58 |
615,542,915.39 |
|
Spare parts for
repairs |
- |
- |
113,179,495.66 |
|
|
|
|
|
|
Total Current Assets
|
1,308,382,779.83 |
1,345,581,126.57 |
1,334,159,392.68 |
|
|
|
|
|
|
Investment in subsidiary companies |
4,701,998,460.00 |
4,701,998,460.00 |
4,701,998,460.00 |
|
Property, plant and equipment |
2,726,306,292.56 |
2,708,535,211.24 |
2,271,105,419.57 |
|
Intangible assets |
1,706,328.52 |
1,435,477.09 |
1,621,181.25 |
|
Deferred tax assets |
64,575,770.11 |
18,608,357.58 |
- |
|
Other non - current assets |
6,858,273.40 |
6,935,500.89 |
3,972,677.06 |
|
Total Assets |
8,809,827,904.42 |
8,783,094,133.37 |
8,312,857,130.56 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 [Restated] |
2011 |
|
|
|
|
|
|
Bank overdraft &
short-term loans from financial institutions |
505,000,000.00 |
525,000,000.00 |
671,897,081.25 |
|
Trade and other
payable |
970,423,331.55 |
722,348,218.81 |
802,489,376.56 |
|
Advances received from
customers |
21,898,094.88 |
12,934,313.41 |
24,138,599.60 |
|
Current portion of
long-term loans |
1,378,800,000.00 |
1,008,800,000.00 |
832,000,000.00 |
|
Short-term loan from related
parties |
220,000,000.00 |
180,000,000.00 |
330,000,000.00 |
|
Accrued income tax
|
- |
- |
7,331,058.95 |
|
|
|
|
|
|
Total Current Liabilities |
3,096,121,426.43 |
2,449,082,532.22 |
2,667,856,116.36 |
|
Long-term loans from
financial institutions |
2,565,400,000.00 |
2,864,200,000.00 |
2,262,600,000.00 |
|
Employee benefits obligation |
70,880,525.00 |
54,352,170.50 |
49,872,500.50 |
|
Other non-current liabilities |
8,379,729.50 |
- |
- |
|
Total Liabilities |
5,740,781,680.93 |
5,367,634,702.72 |
4,980,328,616.86 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share capital |
|
|
|
|
Authorised share capital |
|
|
|
|
1,425,839,127 ordinary
shares @ Baht 1.00 |
1,425,839,127.00 |
1,425,839,127.00 |
1,425,839,127.00 |
|
Issued and
paid-up share capital |
|
|
|
|
1,305,839,127 ordinary
shares @ Baht 1.00 |
1,305,839,127.00 |
1,305,839,127.00 |
1,305,839,127.00 |
|
Premium on Share Capital |
1,020,000,000.00 |
1,020,000,000.00 |
1,020,000,000.00 |
|
Retained Earnings: Appropriated for Statutory Reserve |
142,667,000.00 |
142,667,000.00 |
142,667,000.00 |
|
Unappropriated |
600,540,096.49 |
946,953,303.65 |
864,022,386.70 |
|
Total Shareholders' Equity |
3,069,046,223.49 |
3,415,459,430.65 |
3,332,528,513.70 |
|
Total Liabilities & Shareholders' Equity |
8,809,827,904.42 |
8,783,094,133.37 |
8,312,857,130.56 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 [Restated] |
2011 |
|
|
|
|
|
|
Revenue from sales |
2,934,293,425.91 |
3,735,197,882.10 |
3,482,690,330.68 |
|
Cost of sales |
[2,829,538,030.48] |
[3,252,632,033.99] |
3,014,964,035.48 |
|
Gross profit |
104,755,395.43 |
482,565,848.11 |
467,726,295.20 |
|
Dividend income from subsidiaries |
78,697,405.80 |
279,946,730.02 |
284,048,059.18 |
|
Gain from exchange rate |
9,776,083.29 |
4,852,137.47 |
16,220,624.38 |
|
Other income |
30,395,558.76 |
13,354,435.29 |
19,373,398.07 |
|
Profit before expenses |
223,624,443.28 |
780,719,150.89 |
787,368,376.83 |
|
Selling expenses |
[153,896,715.45] |
[210,401,938.32] |
[199,179,735.79] |
|
Administrative expenses |
[125,665,636.07] |
[117,686,063.80] |
[99,229,526.80] |
|
Management befit expenses |
[19,948,694.00] |
[20,426,311.50] |
[20,454,897.00] |
|
Financial cost |
[186,805,464.02] |
[172,006,408.85] |
[161,358,088.93] |
|
Total Expenses |
[486,316,509.54] |
[520,520,722.47] |
480,222,248.52 |
|
Profit / [Loss] before income
tax |
[262,692,066.26] |
260,198,428.42 |
307,146,128.31 |
|
Income tax [expenses]
revenues |
43,534,626.13 |
237,960.13 |
[7,435,515.86] |
|
|
|
|
|
|
Net Profit / [Loss] |
[219,157,440.13] |
260,436,388.55 |
299,710,612.45 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.42 |
0.55 |
0.50 |
|
QUICK RATIO |
TIMES |
0.24 |
0.30 |
0.21 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.08 |
1.38 |
1.53 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.33 |
0.43 |
0.42 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
(56.78) |
(54.73) |
3.89 |
|
INVENTORY TURNOVER |
TIMES |
(6.43) |
(6.67) |
93.93 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
69.74 |
53.96 |
5.57 |
|
RECEIVABLES TURNOVER |
TIMES |
5.23 |
6.76 |
65.52 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
(125.18) |
(81.06) |
97.15 |
|
CASH CONVERSION CYCLE |
DAYS |
138.14 |
80.28 |
(87.69) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
(96.43) |
(87.08) |
86.57 |
|
SELLING & ADMINISTRATION |
% |
(9.53) |
(8.78) |
(8.57) |
|
INTEREST |
% |
6.37 |
4.61 |
4.63 |
|
GROSS PROFIT MARGIN |
% |
200.48 |
195.06 |
22.61 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
120.62 |
121.92 |
95.39 |
|
NET PROFIT MARGIN |
% |
(7.47) |
6.97 |
8.61 |
|
RETURN ON EQUITY |
% |
(7.14) |
7.63 |
8.99 |
|
RETURN ON ASSET |
% |
(2.49) |
2.97 |
3.61 |
|
EARNING PER SHARE |
BAHT |
(0.17) |
0.20 |
0.23 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.65 |
0.61 |
0.60 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.87 |
1.57 |
1.49 |
|
TIME INTEREST EARNED |
TIMES |
18.95 |
26.48 |
20.59 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(21.44) |
7.25 |
|
|
OPERATING PROFIT |
% |
(22.28) |
37.08 |
|
|
NET PROFIT |
% |
(184.15) |
(13.10) |
|
|
FIXED ASSETS |
% |
0.66 |
19.26 |
|
|
TOTAL ASSETS |
% |
0.30 |
5.66 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -21.44%. Turnover has decreased from THB
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
200.48 |
Impressive |
Industrial
Average |
17.31 |
|
Net Profit Margin |
(7.47) |
Deteriorated |
Industrial
Average |
2.61 |
|
Return on Assets |
(2.49) |
Deteriorated |
Industrial
Average |
2.04 |
|
Return on Equity |
(7.14) |
Deteriorated |
Industrial
Average |
4.44 |
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 200.48%. 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 -7.47%.
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 -2.49%.
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 -7.14%.
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 |
0.42 |
Risky |
Industrial
Average |
1.20 |
|
Quick Ratio |
0.24 |
|
|
|
|
Cash Conversion Cycle |
138.14 |
|
|
|
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 0.42 times in 2013, decreased from 0.55 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 0.24 times in 2013,
decreased from 0.3 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 139 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
SATISFACTORY
LEVERAGE RATIO
|
Debt Ratio |
0.65 |
Impressive |
Industrial
Average |
0.71 |
|
Debt to Equity Ratio |
1.87 |
Risky |
Industrial
Average |
1.55 |
|
Times Interest Earned |
18.95 |
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 18.95 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 0.65 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 :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
1.08 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.33 |
Deteriorated |
Industrial
Average |
1.10 |
|
Inventory Conversion Period |
(56.78) |
|
|
|
|
Inventory Turnover |
(6.43) |
Deteriorated |
Industrial
Average |
5.51 |
|
Receivables Conversion Period |
69.74 |
|
|
|
|
Receivables Turnover |
5.23 |
Acceptable |
Industrial
Average |
7.79 |
|
Payables Conversion Period |
(125.18) |
|
|
|
The company's Account Receivable Ratio is calculated as 5.23 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 decreased from -55 days at the
end of 2012 to -57 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from -6.67 times in year 2012 to -6.43
times in year 2013.
The company's Total Asset Turnover is calculated as 0.33 times and 0.43
times in 2013 and 2012 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Stable
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.84 |
|
|
1 |
Rs.98.72 |
|
Euro |
1 |
Rs.78.64 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
NIS |
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.