MIRA INFORM REPORT
|
Report No. : |
353615 |
|
Report Date : |
12.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
CHAI WATANA TANNERY GROUP PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
176/1, 1480 Moo 1 K.M. 30, Sukhumvit Road, T. Taiban, A. Muang, Samutprakarn 10280 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
17.01.1972 |
|
|
|
|
Com. Reg. No.: |
0107537002036 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
·
The
subject is engaged
in tanning business
by manufacturing, distributing, exporting
and servicing of
leather and other
related products, which
divided into four
main products as
follows: Tanned
Hides Dog
Chew Toys Leather
Furniture Automotive
Leather Cuttings ·
Subject
also produces finished
leather for auto seats
and car decorating
equipment’s supply to
OEM market and
after market both
in domestic and
overseas markets. The
products are divided
into 3 categories:
leather, cut piece and
cushion cover. |
|
|
|
|
No. of Employees : |
965 |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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, and generally pro-investment policies Thailand has historically had a
strong economy due in part to competitive industrial and agriculture exports -
mostly electronics, agricultural commodities, automobiles and parts, and
processed foods. The economy experienced slow growth and declining exports in
2014, in part due to domestic political turmoil and sluggish global demand.
With full employment, Thailand attracts an estimated 2-4 million migrant
workers from neighboring countries, and faces labor shortages. Following the
May 2014 coup d'etat, tourism decreased 6-7% but is beginning to recover. The
household debt to GDP ratio is over 80%. 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 baht has remained stable.
|
Source
: CIA |
Company
Name
CHAI WATANA
TANNERY GROUP PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 176/1, 1480 MOO
1 K.M. 30,
SUKHUMVIT ROAD, T.
TAIBAN, A. MUANG,
SAMUTPRAKARN 10280,
THAILAND
TELEPHONE : [66] 2703-6598-9
FAX : [66] 2703-6866
E-MAIL ADDRESS : wanida@cwt.co.th
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1972
REGISTRATION NO. : 0107537002036
TAX ID NO. : 3271002988
CAPITAL REGISTERED : BHT.
1,018,714,422
CAPITAL PAID-UP : BHT. 427,042,282
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED COMPANY
EXECUTIVE : MR. WEERAPON CHAITEERATH, THAI
MANAGING DIRECTOR
NO. OF STAFF : 965
LINES OF BUSINESS : TANNERY
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
|
|
|
CORPORATE PROFILE |
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR
PERFORMANCE
HISTORY
The subject was
established on January 17,
1972 as a
private limited company
under the registered name “Chai Watana
Tannery Co., Ltd.”,
in order to be engaged
in tannery industry for
cow and water
buffalo leather.
The subject was
listed on the Stock
Exchange of Thailand
on April 29, 1991
and converted into
a public limited
company on June
7, 1994. Later
on May 15,
1997, its name
was changed to
CHAI WATANA TANNERY
GROUP PUBLIC COMPANY
LIMITED. It currently
employs 965 staff.
On August 22,
1998, the subject
started quality standard
ISO 9002 program and
succeeded from evaluation by the Bureau
Veritas Quality International
[BVQI] on February
27, 1999. Therefore,
the subject is
the first company
in tannery industry in the
country, which achieved
the ISO 9002
certificate, as well
as achievement GMP
and HACCP systems
certification from Department
of Livestock Development
under CODEX international
standards.
The subject’s registered
address is 176/1,
1480 Moo 1, K.m.
30, Sukhumvit Rd.,
T. Taiban, A. Muang, Samutprakarn
10280, and this
is the subject’s
current operation
address.
BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Date of Birth |
Age |
|
|
|
|
|
|
|
Mr. Weerapon Chaiteerath |
[x] |
Thai |
July 20, 1967 |
48 |
|
Mrs. Vanida Sikamahn |
[-] |
Thai |
1964 |
51 |
|
Ms. Nutsita Chaiteerath |
[-] |
Thai |
September 10, 1966 |
49 |
|
Mr. Paramate Jirutsophon |
|
Thai |
January 18, 1968 |
47 |
|
Mr. Theerawat Phupaiboon |
|
Thai |
May 20, 1959 |
56 |
AUTHORIZED PERSON
Only the mentioned
director [x] signs
or both of
the mentioned directors [-] can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Weerapon Chaiteerath
is the Managing
Director.
He is Thai
nationality with the
age of 48
years old.
Mr. Anupong Sikamahn is the
Deputy
Managing Director & Operation
Manager.
He is Thai
nationality.
Mrs. Vanida Sikamahn is
the Deputy Managing Director.
She is Thai
nationality with the age
of 51 years
old.
Mrs. Natawan Chaiteerath
is the Assistant
Managing Director.
She is Thai
nationality.
Mrs. Souwanee Chaiteerath
is the Assistant
Managing Director.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in tanning
business by manufacturing, distributing,
exporting and servicing
of leather and
other related products,
which divided into
four main products
as follows:
Tanned Hides
The production with
require raw material
hand bags, shoes
& belts. Cow
and buffalo are
the raw materials
which have been
passing through the
working process of
dyeing & finishing
systems into finished
leathers to be
exported to overseas
and using these
raw material for
furniture leathers.
Dog Chew Toys
Using lower leathers
& scraps which
are from the
dyeing process from
tannery and to
produce into different
kinds of shapes
and style as
per the market
requirement such as
bones, footballs, and
shoes to be
exported overseas.
It is one
of the world’s
largest raw hide
dog chews manufacturers.
Leather Furniture
From finished leathers
to be more
elegance to become
leather furniture, with
also cut and
sewn [sofa cushion]
and ready finished
products for sofa
set for export
purpose.
Automotive Leather Cuttings
Subject also produces
finished leather for
auto seats and car
decorating equipments supply
to OEM market
and after market
both in domestic
and overseas markets.
The products are
divided into 3
categories: leather, cut piece
and cushion cover.
PRODUCTION CAPACITY :
Tanned Hide : 2
million square feet/month
Dog Chew Toys
- Raw Hide : 40
tons/month
- Compression Bone : 30
tons/month
- Munchy : 40
tons/month
Leather Furniture : 20
containers/month
Automotive Leather Cuttings : 24,000
tons/month
IMPORT [COUNTRIES]
80% of raw materials
such as raw
hide cow and
buffalo are purchased
from local suppliers,
the remaining 20%
including chemical and
machinery are imported
from Republic of China,
United States of
America, Austria, Italy,
Germany, Vietnam, India,
Japan, Singapore, U.K.,
and Myanmar.
SALES
70% of the
products is sold
locally to manufacturers
and wholesalers, the
remaining 30% is
exported to Germany,
United States of America,
Singapore, United Kingdom,
Australia, Hong Kong,
Japan, Republic of
China, Italy, Denmark
and Sweden.
MAJOR CUSTOMERS
Bungert Gerbhaut Handelsgesellschaft GmbH :
Germany
Arne Jarensen :
Denmark
Lind Mobler Bramming
A.S. :
Australia
IKEA : Sweden
Income Structure from
Four Main Products
Categories as at
December 31, 2014
[Unit : Thousand Baht]
|
Product Line |
2014 |
2013 |
||
|
|
Income |
% |
Income |
% |
|
|
|
|
|
|
|
Tanned Hides & Service |
296 |
32 |
312 |
34 |
|
Dog Chew Toys |
109 |
12 |
109 |
12 |
|
Leather Furniture |
43 |
5 |
50 |
6 |
|
Automotive Leather Cuttings |
470 |
51 |
435 |
48 |
|
Total |
918 |
100 |
906 |
100 |
SUBSIDIARY &
AFFILIATED COMPANY
Pala Assets Co.,
Ltd.
Business Type : Manufacturer
and distributor of
automotive leather
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
Purchasing terms are
on the credits
term of 30-60
days.
Imports are by
L/C at sight
or on the
credit term of
120 days and
T/T.
Selling terms are
by cash or on
the credits term
of 30-60 days.
Exports are against
L/C at sight
or on the
credit term of
60 days and
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok 10500]
Krung Thai Bank
Public Co., Ltd.
[Paknam Branch : Muang, Samutprakarn]
EMPLOYMENT
The subject employs
965 staff. [office,
sales staff and
factory workers]
LOCATION DETAILS
The premise is
owned for administrative office,
factory I and
warehouse at the
heading address. It
is located in
the outskirts of
Bangkok.
The factory II
and warehouse are
located at 419-420 Moo 7, Buddharuksa
Rd., Phrasksa, Muang, Samutprakarn 10280, Thailand Tel: [66]
2703-7880-1, Fax: [66] 2703-7882.
COMMENT
There is very high competitive in tannery industry particularly in term
of price and quality. Price sensitivity becomes the first
priority for leather furniture. The main competitors for dog chews
products are Republic of China,
Vietnam and India. Comparing to the competitors, the company has more advantages in term of trust worthiness as it
has been in business for more than 30
years with the ISO 9001:2000 certification for the international quality
standard of leather furniture and QS-9000 certification for tanned hides (automotive leather) as a
guarantee.
Its manufacturing equips with
modern machinery with high technology in dyeing and finishing, as well as
variety of designs and colour which
suitable for the purpose of upholstering home and office furniture, car
furnishing and shoe making. This has
resulted with its strong reputation, high recognition and widely accepted by
many industries both domestic and overseas.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 1,600,000.
The capital was
increased later as
followings:
Bht. 5,000,000 in May,
1973
Bht. 40,000,000
in February, 1990
Bht. 192,000,000
in June, 1992
Bht. 225,000,000
in August, 1992
Bht. 348,750,000
on May 25, 2004
The latest registered
capital was increased
to Bht. 1,018,714,422 divided
into
1,018,714,422 shares of
Bht. 1 each,
with a current
capital paid-up at
Bht. 427,042,282.
MAIN SHAREHOLDERS: [as
at May 21,
2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Weerapon Chaiteerath |
81,424,035 |
21.60 |
|
Chaideeying Co., Ltd. |
67,344,375 |
17.87 |
|
Mr. Yutthana Phanratanamongkol |
10,000,000 |
2.65 |
|
Thai NVDR Co.,
Ltd. |
6,607,080 |
1.75 |
|
Mr. Surach Phanwongyuenyong |
6,600,000 |
1.75 |
|
Mr. Nuttapong Phanratanamongkol |
6,074,100 |
1.61 |
|
Mrs. Kimnai Chaiteerath |
5,618,800 |
1.49 |
|
Ms. Suteera Silla |
4,916,500 |
1.30 |
|
Mr. Teeraseth Manokasemsan |
4,189,857 |
1.11 |
|
Mr. Sathit Rungruangrit |
3,671,700 |
0.97 |
|
Mr. Thanaphun Prasertrungruang |
2,664,600 |
0.71 |
|
Mr. Prapan Kanchitavorakul |
2,400,000 |
0.64 |
Total Shareholders :
4,262
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.:
Ms. Lehum Chinnapan No.
7306
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 |
10,517,388 |
1,322,133 |
4,846,349 |
|
Trade Accounts & Other
Receivable |
175,052,661 |
133,709,722 |
257,350,814 |
|
Inventories |
458,597,099 |
423,030,701 |
525,975,470 |
|
Other Current Assets
|
3,260,490 |
4,594,087 |
11,498,777 |
|
|
|
|
|
|
Total Current Assets
|
647,427,638 |
562,656,643 |
799,671,410 |
|
Deposit at financial institution used as collateral |
2,202,047 |
2,200,362 |
2,198,359 |
|
Investments in subsidiary company |
74,518,536 |
73,028,754 |
60,545,863 |
|
Investments in joint venture |
- |
- |
23,750,000 |
|
Other long-term investments |
50,700,016 |
37,826,016 |
25,394,217 |
|
Long-term loans to subsidiary company |
- |
4,000,000 |
4,000,000 |
|
Amounts due from subsidiary company |
35,212,100 |
39,448,430 |
40,799,030 |
|
Property, plant and equipment |
611,795,552 |
585,393,957 |
560,462,706 |
|
Intangible asset-computer software |
657,087 |
735,467 |
162,129 |
|
Land not used in operation |
4,080,480 |
4,080,480 |
4,080,480 |
|
Other Non - current Assets |
8,142,397 |
7,154,035 |
5,602,070 |
|
Total Assets |
1,434,735,853 |
1,316,524,144 |
1,526,666,264 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 [Restated] |
|
|
|
|
|
|
Bank overdraft and short-term
loan from financial institutions |
367,101,550 |
328,872,811 |
327,011,325 |
|
Trade and other
payable |
242,263,114 |
201,437,609 |
358,886,860 |
|
Current Portion of
financial lease payable |
7,431,167 |
7,697,263 |
4,372,159 |
|
Corporate income tax payable |
- |
- |
4,789,631 |
|
Other Current Liabilities |
2,387,740 |
1,877,030 |
2,097,082 |
|
|
|
|
|
|
Total Current Liabilities |
619,183,571 |
539,884,713 |
697,157,057 |
|
Finance leases payable |
6,745,117 |
9,423,442 |
3,550,077 |
|
Provision for long-term
employee benefit |
9,605,516 |
8,802,847 |
7,346,595 |
|
Deferred tax liabilities |
60,800,484 |
62,045,566 |
64,189,118 |
|
Other Non-current Liabilities |
1,541,000 |
1,510,000 |
1,794,200 |
|
Total Liabilities |
697,875,688 |
621,666,568 |
774,037,047 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share capital |
|
|
|
|
Registered |
|
|
|
|
459,784,584 ordinary share of Baht 1 each |
459,784,584 |
459,784,584 |
- |
|
426,942,828 ordinary share of Baht 1 each |
- |
- |
426,942,828 |
|
Issued and paid-up |
|
|
|
|
361,287,497 ordinary share
of Baht 1 each |
361,287,497 |
361,242,497 |
- |
|
328,417,560 ordinary share
of Baht 1 each |
- |
- |
328,417,560 |
|
Premium on share capital |
163,177,490 |
163,177,490 |
163,177,490 |
|
Advance received from share
subscription |
8,630,705 |
- |
- |
|
Retained Earnings: Appropriated for statutory reserve |
8,123,679 |
6,457,335 |
1,400,675 |
|
Unappropriated |
53,772,999 |
22,112,459 |
92,921,481 |
|
Other components of
shareholders equity |
141,867,795 |
141,867,795 |
141,867,794 |
|
Total Shareholders' Equity |
736,860,165 |
694,857,576 |
727,785,000 |
|
Total Liabilities & Shareholders' Equity |
1,434,735,853 |
1,316,524,144 |
1,501,822,047 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 [Restated] |
|
|
|
|
|
|
Sales and services |
910,923,476 |
898,779,191 |
1,277,661,988 |
|
Cost of sales and services |
[800,002,597] |
[828,991,437] |
[1,096,261,093] |
|
Gross profit |
110,920,879 |
69,787,754 |
181,400,895 |
|
Gain [loss] on exchange rate |
405,061 |
[5,137,096] |
7,509,743 |
|
Gain [loss] on disposal of
assets |
[1,359,841] |
626,151 |
3,996,714 |
|
Gain on debt restructuring - employee benefits |
- |
- |
3,535,890 |
|
Actuarial gains from post |
|
|
3,705,774 |
|
Other income |
25,554,646 |
20,375,001 |
14,063,410 |
|
Reversal of impairment of investment |
12,784,000 |
12,431,800 |
24,145,744 |
|
Reversal of impairment of
investment in subsidiary [provision] |
1,489,782 |
[13,142,034] |
- |
|
Selling expenses |
[26,323,966] |
[25,409,184] |
[35,919,410] |
|
Administrative expenses |
[56,270,601] |
[57,474,032] |
[64,386,862] |
|
Reversal of doubtful debts [doubtful debts] |
[727,275] |
[585,713] |
9,708,733 |
|
Loss on impairment assets |
[6,928,617] |
[6,121,962] |
[10,009,987] |
|
Finance costs |
[25,033,429] |
[24,568,339] |
[22,611,411] |
|
|
|
|
|
|
Profit / [Loss] before Income
Tax |
34,600,639 |
[29,217,654] |
115,139,233 |
|
[Income tax expenses] income tax benefits |
[1,351,812] |
2,143,551 |
[17,394,670] |
|
Net profit [loss] for the year |
33,248,827 |
[27,074,103] |
97,744,563 |
|
Other comprehensive income : |
|
|
|
|
Actuarial gain [loss] from
post employee benefits |
78,057 |
[2,205,794] |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
33,326,884 |
[29,279,897] |
97,744,563 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.05 |
1.04 |
1.15 |
|
QUICK RATIO |
TIMES |
0.30 |
0.25 |
0.38 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.49 |
1.54 |
2.28 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.63 |
0.68 |
0.84 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
209.23 |
186.26 |
175.12 |
|
INVENTORY TURNOVER |
TIMES |
1.74 |
1.96 |
2.08 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
70.14 |
54.30 |
73.52 |
|
RECEIVABLES TURNOVER |
TIMES |
5.20 |
6.72 |
4.96 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
110.53 |
88.69 |
119.49 |
|
CASH CONVERSION CYCLE |
DAYS |
168.84 |
151.87 |
129.15 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
87.82 |
92.24 |
85.80 |
|
SELLING & ADMINISTRATION |
% |
9.07 |
9.22 |
7.85 |
|
INTEREST |
% |
2.75 |
2.73 |
1.77 |
|
GROSS PROFIT MARGIN |
% |
14.88 |
9.53 |
16.77 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.22 |
(3.17) |
5.60 |
|
NET PROFIT MARGIN |
% |
3.66 |
(3.26) |
7.65 |
|
RETURN ON EQUITY |
% |
4.52 |
(4.21) |
12.99 |
|
RETURN ON ASSET |
% |
2.32 |
(2.22) |
6.40 |
|
EARNING PER SHARE |
BAHT |
9.22 |
(8.11) |
29.76 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.49 |
0.47 |
0.51 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.95 |
0.89 |
1.03 |
|
TIME INTEREST EARNED |
TIMES |
0.81 |
(1.16) |
3.17 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
1.35 |
(29.65) |
|
|
OPERATING PROFIT |
% |
(170.99) |
(139.83) |
|
|
NET PROFIT |
% |
213.82 |
(129.96) |
|
|
FIXED ASSETS |
% |
4.51 |
4.45 |
|
|
TOTAL ASSETS |
% |
8.98 |
(13.76) |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 1.35%. Turnover has increased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
14.88 |
Impressive |
Industrial Average |
(0.25) |
|
Net Profit Margin |
3.66 |
Impressive |
Industrial Average |
2.29 |
|
Return on Assets |
2.32 |
Satisfactory |
Industrial Average |
2.97 |
|
Return on Equity |
4.52 |
Deteriorated |
Industrial Average |
10.95 |
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 14.88%. 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
3.66%, 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. When compared with the
industry average, it was lower, the company's figure is 2.32%.
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 4.52%.
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 |
1.05 |
Satisfactory |
Industrial Average |
1.19 |
|
Quick Ratio |
0.30 |
|
|
|
|
Cash Conversion Cycle |
168.84 |
|
|
|
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 1.05 times in 2014, increases from 1.04 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 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 0.3 times in 2014,
increases from 0.25 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 169 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
SATISFACTORY
LEVERAGE RATIO
|
Debt Ratio |
0.49 |
Impressive |
Industrial Average |
0.71 |
|
Debt to Equity Ratio |
0.95 |
Impressive |
Industrial Average |
2.47 |
|
Times Interest Earned |
0.81 |
Risky |
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 0.81 lower than 1, so the company is not generating
enough cash from EBIT to meet its
interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.49 less than 0.5, most of the company's
assets are financed through equity.
Trend of the average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Stable
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
1.49 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.63 |
Deteriorated |
Industrial Average |
1.30 |
|
Inventory Conversion Period |
209.23 |
|
|
|
|
Inventory Turnover |
1.74 |
Acceptable |
Industrial Average |
2.46 |
|
Receivables Conversion Period |
70.14 |
|
|
|
|
Receivables Turnover |
5.20 |
Satisfactory |
Industrial Average |
5.30 |
|
Payables Conversion Period |
110.53 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.20 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 186 days at the
end of 2013 to 209 days at the end of 2014. This represents a negative trend.
And Inventory turnover has decreased from 1.96 times in year 2013 to 1.74 times
in year 2014.
The company's Total Asset Turnover is calculated as 0.63 times and 0.68
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.66.79 |
|
|
1 |
Rs.101.10 |
|
Euro |
1 |
Rs.73.10 |
|
Thai Baht |
1 |
Rs.1.87 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
HEE |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
NB |
New Business |
-- |
|
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.