MIRA INFORM REPORT
|
Report No. : |
319289 |
|
Report Date : |
25.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
VANACHAI GROUP PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
2/1 Sunant Building, Pibulsongkram Bangsue, Bangkok 10800 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
23.02.1989 |
|
|
|
|
Com. Reg. No.: |
0107537002621 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged
in manufacturing and
distributing MDF board,
molded doorskin, particleboard, laminated
flooring, Melamine laminated
of particle and
MDF board. |
|
|
|
|
No. of Employee : |
1,360 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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 has had a strong economy due in part to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Thailand 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 both 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. Government approved flood mitigation projects, worth $11.7 billion, were started in 2012 to prevent a repeat. Thai growth slowed in 2013 and has remained low since, as the country faced political uncertainty and a coup in May 2014. The interim government is implementing a special $11 billion short-term stimulus package and has approved a budget of more than $80 billion to aid an economic rebound.
|
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. 1,567,006,952
CAPITAL PAID-UP : BHT.
1,567,006,876
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. WANTHANA JAROENNAWARAT, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 1,360
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
GOOD 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 floor 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 1,360
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 |
63 |
|
Mr. Vasun Jaroennawarat |
|
Thai |
60 |
|
Mr. Wanthana Jaroennawarat |
[-] |
Thai |
55 |
|
Mr. Suebtrakul
Soonthornthum : Vice
Chairman |
|
Thai |
73 |
|
Mr. Suthep Chaipattanavanich |
|
Thai |
52 |
|
Ms. Yupaporn Boongate :
Vice Chairman |
[x] |
Thai |
61 |
|
Mr. Nipon Wisityuthasart |
|
Thai |
76 |
|
Mr. Patta Sahawat |
[x] |
Thai |
43 |
|
Ms. Phattra Sahawat |
[x] |
Thai |
41 |
|
Mr. Somprasong Sahawat |
[-] |
Thai |
39 |
|
Pol. Gen. Wichean Potephosree |
|
Thai |
62 |
|
Pol. Gen. Soontorn Saikwan |
|
Thai |
71 |
|
Gen. Vichit Yathip |
|
Thai |
69 |
|
Mr. Kraithip Krairiksh |
|
Thai |
61 |
|
Mr. Surapong Dumrisilp |
|
Thai |
- |
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 55
years old.
Mr. Nirun Suntipiromkul is
the Deputy Managing
Director [Factory Plant Manager].
He is Thai
nationality with the
age of 62
years old.
Mr. Patta Sahawat is
the Deputy Managing
Director.
He is Thai
nationality with the
age of 43
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 41
years old.
Mr. Somprasong Sahawat is
the Assistant Managing
Director.
He is Thai
nationality with the
age of 39 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,
particleboard, laminated flooring,
Melamine laminated of
particle and MDF
board.
Subject is also
a holding company
and invests in
subsidiaries which engaged
in panel board
manufacturing and trading
business.
PRODUCTION
CAPACITY
MDF Board : 3,600,000
cubic meters per
annum
Moulded Doorskin : 3,600,000
sheets per annum
Particleboard
: 240,000 cubic
meters
Laminate Flooring : 6,647,200
square meters per
annum
Melamine Laminated of
particle &
MDF board : 141,176
cubic meters
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,
India, Republic of China, Malaysia, Myanmar
and Australia.
MAJOR
SUPPLIER
Vanachai Chemical Industries
Co., Ltd. : Thailand
SALES
[LOCAL]
85% of the
products is sold
locally to Woodtex
International Co., Ltd.
[70%], and wholesalers
[30%].
EXPORT
15% of the
products is exported
to Japan and
the countries in
Europe
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 |
|
Melamine Laminated |
728.81 |
9 |
769.88 |
8 |
|
Laminated Flooring |
677.43 |
8 |
480.83 |
5 |
|
Doorskins |
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.
PV Wood Co.,
Ltd.
Business Type : Manufacturer
and distributor of
laminated veneer, MDF
board and
laminated particleboard.
LITIGATION
Bankruptcy and Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the
subject found at
Legal Execution Department
for the past
five years.
Others
There are no
legal suits filed
against the subject
according to the
past two years.
CREDIT
Sales 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.
Exports are against
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
1,360 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. 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.
Despite
consumption slowdown in
domestic, subject is
able to maintain
a strong business
in export markets.
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. 1,567,006,952
divided into 1,567,006,952 shares of
Bht. 1 each, with
the current capital paid-up at
Bht. 1,567,006,876.
MAIN
SHAREHOLDERS
[as
at March 24,
2015] at Bht.
1,567,006,876 of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
The Vanachai Group
of Companies Co.,
Ltd. |
809,404,399 |
51.65 |
|
Mr. Sompop Sahawat |
65,999,919 |
4.21 |
|
Bangkok Bank Public
Co., Ltd. |
52,764,912 |
3.37 |
|
Mr. Anucha Kijthanamongkolchai |
36,314,000 |
2.32 |
|
Mr. Somprasong Sahawat |
33,000,000
|
2.11 |
|
Ms. Somjairak Sahawat |
33,000,000
|
2.11 |
|
Ms. Yupaporn Boongate |
32,999,959 |
2.11 |
|
Mr. Wanthana Jaroennawarat |
32,999,959 |
2.11 |
|
Mr. Vasun Jaroennawarat |
32,999,959 |
2.11 |
|
Mr. Patta Sahawat |
32,999,959 |
2.11 |
|
Ms. Phattra Sahawat |
32,999,959 |
2.11 |
|
Mrs. Siriporn Chaipattanavanich |
32,999,959 |
2.11 |
|
Sinsaptawee Asset Management
Co., Ltd. |
22,806,360 |
1.46 |
|
Thai NVDR Co.,
Ltd. |
11,866,819 |
0.76 |
|
Mrs. Darawan Benjasiriwan |
11,480,000 |
0.73 |
|
East Fourteen Limited-Dimensional Emer
Mkts Value FD |
10,240,920 |
0.65 |
|
Others |
282,129,793 |
17.97 |
Total Shareholders :
4,053
NAME OF AUDITOR
& CERTIFIED PUBLIC ACCOUNTANT NO.
Ms. Prapasri Leelasupa No. 4664
BALANCE
SHEET [BAHT]
The latest
financial figures published as at December
31, 2014, 2013
& 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 [Restated] |
|
|
|
|
|
|
Cash and cash
equivalents |
284,934,146.22 |
157,877,994.26 |
177,546,697.35 |
|
Trade and other
receivable |
695,627,909.98 |
560,612,400.52 |
552,185,675.16 |
|
Revenue department receivable |
14,227,482.27 |
11,732,111.88 |
11,139,002.39 |
|
Inventories |
591,612,642.40 |
440,144,405.23 |
487,753,738.09 |
|
Maintenance supplies |
154,223,418.51 |
138,015,867.94 |
116,956,013.58 |
|
|
|
|
|
|
Total Current Assets
|
1,740,625,599.38 |
1,308,382,779.83 |
1,345,581,126.57 |
|
|
|
|
|
|
Investment in subsidiary companies |
4,702,498,460.00 |
4,701,998,460.00 |
4,701,998,460.00 |
|
Property, plant and equipment |
2,726,992,188.95 |
2,726,306,292.56 |
2,708,535,211.24 |
|
Intangible assets |
1,490,949.42 |
1,706,328.52 |
1,435,477.09 |
|
Deferred tax assets |
63,898,708.76 |
64,575,770.11 |
18,608,357.58 |
|
Other non - current assets |
3,629,375.64 |
6,858,273.40 |
6,935,500.89 |
|
Total Assets |
9,239,135,282.15 |
8,809,827,904.42 |
8,783,094,133.37 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 [Restated] |
|
|
|
|
|
|
Bank overdraft &
short-term loans from financial institutions |
660,000,000.00 |
505,000,000.00 |
525,000,000.00 |
|
Trade and other
payable |
1,190,222,866.22 |
970,423,331.55 |
722,348,218.81 |
|
Advances received from
customers |
28,426,836.29 |
21,898,094.88 |
12,934,313.41 |
|
Current portion of
long-term loans |
762,800,000.00 |
1,378,800,000.00 |
1,008,800,000.00 |
|
Short-term loan from related
parties |
919,000,000.00 |
220,000,000.00 |
180,000,000.00 |
|
|
|
|
|
|
Total Current Liabilities |
3,560,449,702.51 |
3,096,121,426.43 |
2,449,082,532.22 |
|
Long-term loans from
financial institutions |
2,086,400,000.00 |
2,565,400,000.00 |
2,864,200,000.00 |
|
Employee benefits obligation |
78,331,179.00 |
70,880,525.00 |
54,352,170.50 |
|
Other non-current liabilities |
7,018,750.91 |
8,379,729.50 |
- |
|
Total Liabilities |
5,732,199,632.42 |
5,740,781,680.93 |
5,367,634,702.72 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share capital |
|
|
|
|
Authorised share capital |
|
|
|
|
1,567,006,952 ordinary
shares @ Baht 1.00 |
1,567,006,952.00 |
- |
- |
|
1,425,839,127 ordinary
shares @ Baht 1.00 |
- |
1,425,839,127.00 |
1,425,839,127.00 |
|
Issued and
paid-up share capital |
|
|
|
|
1,567,006,876 ordinary shares @ Baht 1.00 |
1,567,006,876.00 |
- |
- |
|
1,305,839,127 ordinary shares @ Baht 1.00 |
- |
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 |
156,700,695.20 |
142,667,000.00 |
142,667,000.00 |
|
Unappropriated |
763,228,078.53 |
600,540,096.49 |
946,953,303.65 |
|
Total Shareholders' Equity |
3,506,935,649.73 |
3,069,046,223.49 |
3,415,459,430.65 |
|
Total Liabilities & Shareholders' Equity |
9,239,135,282.15 |
8,809,827,904.42 |
8,783,094,133.37 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 [Restated] |
|
|
|
|
|
|
Revenue from sales |
4,585,090,053.10 |
2,934,293,425.91 |
3,735,197,882.10 |
|
Cost of sales |
[3,956,923,748.38] |
[2,829,538,030.48] |
[3,252,632,033.99] |
|
Gross profit |
628,166,307.72 |
104,755,395.43 |
482,565,848.11 |
|
Dividend income from subsidiaries |
376,448,604.55 |
78,697,405.80 |
279,946,730.02 |
|
Gain from exchange rate |
10,849,322.96 |
9,776,083.29 |
4,852,137.47 |
|
Other income |
17,228,576.83 |
30,395,558.76 |
13,354,435.29 |
|
Profit before expenses |
1,032,692,809.06 |
223,624,443.28 |
780,719,150.89 |
|
Selling expenses |
[225,706,178.22] |
[153,896,715.45] |
[210,401,938.32] |
|
Administrative expenses |
[141,124,209.88] |
[125,665,636.07] |
[117,686,063.80] |
|
Management befit expenses |
[23,486,909.00] |
[19,948,694.00] |
[20,426,311.50] |
|
Financial cost |
[174,790,304.35] |
[186,805,464.02] |
[172,006,408.85] |
|
Total Expenses |
[565,107,601.45] |
[486,316,509.54] |
[520,520,722.47] |
|
Profit / [Loss] before income
tax |
467,585,207.61 |
[262,692,066.26] |
260,198,428.42 |
|
Income tax [expenses]
revenues |
[677,061.35] |
43,534,626.13 |
237,960.13 |
|
|
|
|
|
|
Net Profit / [Loss] |
466,908,146.26 |
[219,157,440.13] |
260,436,388.55 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.49 |
0.42 |
0.55 |
|
QUICK RATIO |
TIMES |
0.28 |
0.24 |
0.30 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.68 |
1.08 |
1.38 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.50 |
0.33 |
0.43 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
54.57 |
56.78 |
54.73 |
|
INVENTORY TURNOVER |
TIMES |
6.69 |
6.43 |
6.67 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
55.38 |
69.74 |
53.96 |
|
RECEIVABLES TURNOVER |
TIMES |
6.59 |
5.23 |
6.76 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
109.79 |
125.18 |
81.06 |
|
CASH CONVERSION CYCLE |
DAYS |
0.16 |
1.33 |
27.63 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
86.30 |
96.43 |
87.08 |
|
SELLING & ADMINISTRATION |
% |
8.00 |
9.53 |
8.78 |
|
INTEREST |
% |
3.81 |
6.37 |
4.61 |
|
GROSS PROFIT MARGIN |
% |
22.52 |
7.62 |
20.90 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
10.20 |
(8.95) |
6.97 |
|
NET PROFIT MARGIN |
% |
10.18 |
(7.47) |
6.97 |
|
RETURN ON EQUITY |
% |
13.31 |
(7.14) |
7.63 |
|
RETURN ON ASSET |
% |
5.05 |
(2.49) |
2.97 |
|
EARNING PER SHARE |
BAHT |
0.30 |
(0.17) |
0.20 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.62 |
0.65 |
0.61 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.63 |
1.87 |
1.57 |
|
TIME INTEREST EARNED |
TIMES |
2.68 |
(1.41) |
1.51 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
56.26 |
(21.44) |
|
|
OPERATING PROFIT |
% |
(278.00) |
(200.96) |
|
|
NET PROFIT |
% |
313.05 |
(184.15) |
|
|
FIXED ASSETS |
% |
0.03 |
0.66 |
|
|
TOTAL ASSETS |
% |
4.87 |
0.30 |
|
ANNUAL
GROWTH : IMPRESSIVE
An annual sales growth is 56.26%. Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
22.52 |
Acceptable |
Industrial
Average |
30.12 |
|
Net Profit Margin |
10.18 |
Impressive |
Industrial
Average |
0.98 |
|
Return on Assets |
5.05 |
Impressive |
Industrial
Average |
1.08 |
|
Return on Equity |
13.31 |
Impressive |
Industrial
Average |
2.14 |
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 22.52%. When
compared with the industry average, the ratio of the company was lower. This
indicated that company may have problems with control over its costs.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company's figure is 10.18%,
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
5.05%, 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 13.31%, 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 :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
0.49 |
Risky |
Industrial
Average |
1.14 |
|
Quick Ratio |
0.28 |
|
|
|
|
Cash Conversion Cycle |
0.16 |
|
|
|
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 0.49 times in 2014, increased from 0.42 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 0.28 times in 2014,
increased from 0.24 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 1 day.
Trend of the average
competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.62 |
Acceptable |
Industrial
Average |
0.40 |
|
Debt to Equity Ratio |
1.63 |
Risky |
Industrial
Average |
0.60 |
|
Times Interest Earned |
2.68 |
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 2.68 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 0.62 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 Downtrend
Times Interest Earned Stable
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
1.68 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.50 |
Acceptable |
Industrial
Average |
0.89 |
|
Inventory Conversion Period |
54.57 |
|
|
|
|
Inventory Turnover |
6.69 |
Impressive |
Industrial
Average |
4.74 |
|
Receivables Conversion Period |
55.38 |
|
|
|
|
Receivables Turnover |
6.59 |
Impressive |
Industrial
Average |
5.87 |
|
Payables Conversion Period |
109.79 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.59 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 57 days at the
end of 2013 to 55 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 6.43 times in year 2013 to 6.69 times
in year 2014.
The company's Total Asset Turnover is calculated as 0.5 times and 0.33
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.63.00 |
|
|
1 |
Rs.95.42 |
|
Euro |
1 |
Rs.68.49 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
ANK |
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.