MIRA INFORM REPORT
|
Report No. : |
308580 |
|
Report Date : |
19.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
LIXIL
[THAILAND] PUBLIC COMPANY
LIMITED |
|
|
|
|
Formerly Known As : |
AMERICAN STANDARD B & K [THAILAND] PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
1/6 Moo 1, Phaholyothin Rd., K.M. 32,
T. Klongnueng, A.
Klongluang, Pathumthani 12120 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
21.07.1969 |
|
|
|
|
Com. Reg. No.: |
0107536001443 [Former : BOR.MOR.JOR. 218] |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
manufacturer
and distributor of sanitaryware
including Traditional Toilets,
Wash Basin, Bathtub, Shower, Faucet,
Mirrors, Kitchen Sink, Kitchen
Furniture, and Upscale
Luxury One - Piece Toilets
under the brands
“AMERICAN STANDARD”, “LIXIL”, “TOSTEM”,
“INAX” |
|
|
|
|
No of Employees : |
approximately 1,000 staff
(Including Office, Sales Staff
and Workers) |
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
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
LIXIL [THAILAND]
PUBLIC COMPANY LIMITED
[FORMER : AMERICAN STANDARD B & K [THAILAND] PUBLIC COMPANY LIMITED]
SUMMARY
BUSINESS
ADDRESS : 1/6
MOO 1, PHAHOLYOTHIN
ROAD, K.M. 32,
T.
KLONGNUENG,
A. KLONGLUANG,
PATHUMTHANI
12120, THAILAND
TELEPHONE : [66]
2901-4455
FAX :
[66] 2901-4422
E-MAIL
ADDRESS : Danaya.Sinkirdsuk@asia.lixil.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1969
REGISTRATION
NO. : 0107536001443 [Former : BOR.MOR.JOR. 218]
TAX
ID NO. : 3101004533
CAPITAL
REGISTERED : BHT.
277,000,000
CAPITAL
PAID-UP : BHT.
277,000,000
SHAREHOLDER’S PROPORTION : THAI :
0.73%
FOREIGN :
99.27%
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
CRAIG ANDREW MCEACHERN,
AUSTRALIAN
MANAGING
DIRECTOR
NO.
OF STAFF : 1,000
LINES
OF BUSINESS : SANITARYWARE
MANUFACTURER, DISTRIBUTOR AND
EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
FOR NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was established
on July 21, 1969 as
a private limited company
under the originally registered name “American
Standard Sanitaryware [Thailand] Company Limited” by
a joint-venture between
leading Thai businessmen
and the American
Standard Inc. of
the United States.
The main objective
of the company’s
founders was set
up a manufacturing
plant for the
production of high quality vitreous
China sanitaryware products
to support the
local market demand,
in order to
reduce the need
for imported products.
The subject was
granted various tax
privileges under the
Investment Promotion Act
B.E. 2520 by
the Board of
Investment. On January
22, 1988, it
was listed on the
Stock Exchange of
Thailand.
On November 30,
1993, the subject
registered for a
conversion of its
status to become
a public limited company under the name “American Standard
Sanitaryware [Thailand] Public
Company Limited”.
On February 1, 2005, subject has
revoked its name
from the Stock
Exchange of Thailand. On December
1, 2006, the registered
name was changed
to “American Standard B & K [Thailand] Public
Company Limited”.
On November 1, 2013, its registered
name was finally
changed to LIXIL
[THAILAND] PUBLIC COMPANY
LIMITED. It currently
employs approximately 1,000
staff.
At present, the
subject is a
subsidiary of Lixil
Asean Pte. Ltd.,
of Singapore which
is holding 99.17%
of the subject’s
shares. They are
also member of
Lixil Corporation of
Japan.
It achieved the
standard ISO 9001 : 2000 certification
by BVQI.
The subject’s registered address is 1/6 Moo 1, Phaholyothin Rd., K.M.
32, T.
Klongnueng, A. Klongluang,
Pathumthani 12120, and
this is the
company’s current operating
address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality
|
Age
|
|
|
|
|
|
|
Mrs. Chanchay Cholaworn |
|
Thai |
56 |
|
Mr. Craig Andrew McEachern |
|
Australian |
49 |
|
Mr. Zhimao Ye |
|
Chinese |
47 |
|
Mr. William Charles Crichton |
|
Australian |
50 |
|
Mrs. Pornkanok Lekyim |
|
Thai |
48 |
AUTHORIZED PERSON
Two of the
above directors can jointly
sign on behalf
of the subject
with the company’s affixed.
MANAGEMENT
Mr. Craig Andrew McEachern
is the Managing
Director.
He is
Australian nationality with
the age of
49 years old.
Mr. Sitthirat Watcharaporn is
the Sales & Marketing Director.
He is
Thai nationality.
Mrs.
Pornkanok Lekyim is
the Human Resources
Director.
She is
Thai nationality with the
age of 48
years old.
Mr. Wairung Minakul
is the Purchase
and Logistics Manager.
He is
Thai nationality.
Mr. Parin Mekabut
is the Factory
Manager.
He is
Thai nationality.
BUSINESS OPERATIONS
The subject’s activities
are manufacturer and
distributor of sanitaryware including
traditional toilets, wash basin,
bathtub, shower, faucet, mirrors, kitchen sink,
kitchen furniture, and upscale
luxury one - piece toilets
under the brands
“AMERICAN STANDARD”,
“LIXIL”, “TOSTEM”, “INAX”.
At present, the
subject has more
than 100 models
of sanitaryware products
in the market.
PURCHASE
Raw materials
are purchased from
both local and
overseas suppliers. The countries
in which the
subject imports the
raw materials from
are the United
States of America,
Germany, Italy, Republic
of China, India,
Japan, Korea and Singapore.
SALES
80% of the
products is sold
locally by wholesale
to traders, and
sub-contractors, and by retail
through the subject’s
showroom, the remaining
20% is exported
to overseas customers
in the United States
of America, Canada,
Hong Kong, United Kingdom,
Korea, Singapore, Indonesia,
Vietnam, India, Japan,
Taiwan, Malaysia, Brunei,
United Arab Emirates
and Philippines.
RELATED COMPANY
Ideal Standard
[Thailand] Co., Ltd.
Nationality : Thai
Business Type : Manufacturer
and distributor of
products for bathrooms
and kitchens
Investment : The
subject holds 20%
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.
Exports are against
L/C at sight
or T/T.
BUSINESS TRANSACTION
In term of
sales, the products are
sold by wholesales
through local dealers
nationwide with the maximum
credit given at
60 days, whereas
the exports are
by L/C at
sight and T/T.
The subject has
no serious problem
on its account
receivable. However, the
common problems are
that both local
and overseas customers often negotiate
for the extension
of payment period
and the subject
tries to give
the customers’ flexibility in
their payment as
possible as it
could to keep
them satisfied.
For the purchasing,
the raw materials
are purchased from
local suppliers with
the maximum credit
receive at 60
days, and also
are imported from
overseas suppliers by L/C
at sight
and T/T. The
subject is not
found to have
problem on its
account payable to
its suppliers.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Rd., Bangrak, Bangkok
10500]
Kasikornbank Public Co.,
Ltd.
[Head Office
: 1 Kasikorn
Lane, Rajburana Rd.,
Rajburana, Bangkok 10140]
The Siam Commercial
Bank Public Co.,
Ltd.
[Head Office
: 9 Ratchadapisek
Rd., Ladyao, Jatujak,
Bangkok 10900]
EMPLOYMENT
The subject
employs approximately 1,000
staff comprising office,
sales staff and workers.
LOCATION DETAILS
The premise
is owned for
administrative office and
factory I at
the heading address.
The premise is
located on the
outskirts of Bangkok.
Factory II
is located at
99/2 Moo 8,
T. Mabkha, A.
Nikompattana, Rayong 21180.
Tel.: [66] 38 968-580,
Fax : [66] 38 968-588.
Customer Care:
- 2nd Floor,
Building D, Crystal
Design Center [CDC], 1420
Praditmanutham Rd.,
Klongchan, Bangkapi,
Bangkok 10240. Tel.: [66] 2102-2222, Fax. : [66]
2102-2230.
Branches and showroom :
- 162/6-7 Chiangmai-Lampang Rd.,
T. Patan, A. Muang,
Chiangmai 50000
Tel.: [66] 53
218-047, Fax. : [66] 53 218-342.
- 108/79 Chalermphrakiat Rd.,
T. Rasada, A. Muang,
Phuket 83000
Tel.: [66] 76 261-636, Fax. : [66] 76
261-638.
- 240/18-19 Moo
6, Sukhumvit Rd.,
T. Naklua, A.
Banglamung, Chonburi 20150
Tel. : [66] 38 716-710,
Fax. : [66] 38 716-663.
COMMENT
As world’s leading
producer of bathroom
products, American Standard B
& K [Thailand] Public Company Limited expresses the
brand proposition,
representing three main concepts: Style,
Comfort and Green
through innovative, functional
and environmental friendly
designs for ultimate
comfort. American Standard is
a brand of trust and is widely
accepted for its design excellence
among world-class hotels,
premium service apartments, high-end residential,
commercial and institutional
buildings.
Despite economic slowdown,
subject is able
to maintain a strong
business.
FINANCIAL INFORMATION
The capital was
initially registered at Bht.
25,000,000 divided into
25,000 shares of
Bht. 1,000 each.
The capital was
increased later as
follows:
Bht. 75,000,000
on March 8,
1991
Bht. 105,000,000
on February 27,
2012
Bht. 277,000,000
on November 1,
2013
The latest capital
was increased to
Bht. 277,000,000 divided
into 27,700,000 shares
of Bht. 10
each with fully
paid.
MAIN
SHAREHOLDERS : [as
at April 25,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Lixil Asean Pte.
Ltd. Nationality: Singaporean Address : 7
Temasek Boulevard, #11-03
Suntec Tower
One, Singapore |
27,470,385 |
99.17 |
|
Other Shareholders |
229,615 |
0.83 |
Total Shareholders : 130
Share
Structure [as
at April 25,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
125 |
202,999 |
0.73 |
|
Foreign |
5 |
27,497,001 |
99.27 |
|
Total |
130 |
27,700,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Vichien Kingmontri No.
3977
BALANCE SHEET [BAHT]
The latest financial figures published for December 31, 2013, 2012 & 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents
|
885,953,484 |
577,915,899 |
341,528,408 |
|
Trade Accounts & Other
Receivables |
1,113,574,059 |
1,178,914,006 |
511,500,236 |
|
Inventories |
482,086,259 |
506,690,757 |
384,232,801 |
|
Other Current Assets
|
9,866,419 |
18,625,190 |
29,273,001 |
|
|
|
|
|
|
Total Current Assets
|
2,491,480,221 |
2,282,145,852 |
1,266,534,446 |
|
Investment in Associated
Companies |
34,400,500 |
34,400,500 |
34,400,500 |
|
Intangible Assets |
9,471,560 |
1,914,147 |
2,228,428 |
|
Fixed Assets |
1,103,722,098 |
915,166,857 |
632,512,385 |
|
Deferred Income Tax
Assets |
95,043,783 |
- |
- |
|
Other Non-current Assets |
10,596,554 |
1,431,722 |
1,699,157 |
|
Total Assets |
3,744,714,716 |
3,235,059,078 |
1,937,374,916 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Trade Accounts
& Other Payable |
1,010,552,832 |
708,243,285 |
706,858,436 |
|
Loan from
Related Company |
891,334,953 |
- |
- |
|
Accrued Expenses |
457,391,704 |
389,260,409 |
310,785,617 |
|
Accrued Income
Tax |
29,155,900 |
29,172,219 |
- |
|
|
|
|
|
|
Total Current
Liabilities |
2,388,435,389 |
1,126,675,913 |
1,017,644,053 |
|
Long-term Loan
from Related Company |
- |
1,013,360,244 |
698,992,448 |
|
Deferred Income
Tax Liabilities |
- |
124,732 |
- |
|
Employee Benefit
Obligation |
212,075,985 |
202,977,525 |
173,653,316 |
|
Total Liabilities |
2,600,511,374 |
2,343,138,414 |
1,890,289,817 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10 par
value Authorized &
issued share capital
27,700,000 shares
in 2013 |
277,000,000 |
|
|
|
10,500,000 shares
in 2012 &
2011 |
|
105,000,000 |
105,000,000 |
|
|
|
|
|
|
Capital Paid |
277,000,000 |
105,000,000 |
105,000,000 |
|
Retained Earning Appropriated for Statutory Reserve |
10,500,000 |
7,500,000 |
7,500,000 |
|
Other Reserve |
- |
18,700,000 |
18,700,000 |
|
Unappropriated |
865,794,060 |
760,720,664 |
[84,114,901] |
|
Other Components of Shareholders’ Equity |
[9,090,718] |
- |
- |
|
|
|
|
|
|
Total Shareholders' Equity |
1,144,203,342 |
891,920,664 |
47,085,099 |
|
Total Liabilities &
Shareholders' Equity |
3,744,714,716 |
3,235,059,078 |
1,937,374,916 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Sales |
3,272,435,183 |
2,896,207,061 |
2,270,980,132 |
|
Cost of Goods
Sold |
[2,257,521,209] |
[1,917,306,383] |
[1,593,564,629] |
|
|
|
|
|
|
Gross Profit |
1,014,913,974 |
978,900,678 |
677,415,503 |
|
Impact from Flood
Incident |
80,374,553 |
479,220,859 |
[341,614,944] |
|
Other Income |
6,616,276 |
8,498,603 |
1,557,752 |
|
Selling Expenses |
[416,188,196] |
[355,358,727] |
[356,879,543] |
|
Administrative Expenses |
[316,368,185] |
[211,556,241] |
[418,155,055] |
|
|
|
|
|
|
Profit / [Loss] before Financial
Expenses & Income Tax
|
369,348,422 |
899,705,172 |
[437,676,287] |
|
Financial Expenses |
[9,343,726] |
[11,240,091] |
[7,070,657] |
|
|
|
|
|
|
Profit / [Loss] before Income
Tax |
360,004,696 |
888,465,081 |
[444,746,944] |
|
Income Tax |
[76,381,300] |
[182,229,028] |
1,485,993 |
|
|
|
|
|
|
Net Profit / [Loss] |
283,623,396 |
706,236,053 |
[443,260,951] |
|
Other Miscellaneous Loss from
Estimated Mathematical Method of
Insurance for Employee
Benefits Project
- Net from
Tax |
[9,090,718] |
- |
- |
|
|
|
|
|
|
Total Miscellaneous Profit
for the Year |
274,532,678 |
706,236,053 |
[443,260,951] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.04 |
2.03 |
1.24 |
|
QUICK RATIO |
TIMES |
0.84 |
1.56 |
0.84 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.96 |
3.16 |
3.59 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.87 |
0.90 |
1.17 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
77.94 |
96.46 |
88.01 |
|
INVENTORY TURNOVER |
TIMES |
4.68 |
3.78 |
4.15 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
124.21 |
148.57 |
82.21 |
|
RECEIVABLES TURNOVER |
TIMES |
2.94 |
2.46 |
4.44 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
163.39 |
134.83 |
161.90 |
|
CASH CONVERSION CYCLE |
DAYS |
38.76 |
110.21 |
8.31 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
68.99 |
66.20 |
70.17 |
|
SELLING & ADMINISTRATION |
% |
22.39 |
19.57 |
34.13 |
|
INTEREST |
% |
0.29 |
0.39 |
0.31 |
|
GROSS PROFIT MARGIN |
% |
33.67 |
50.64 |
14.86 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
11.29 |
31.06 |
(19.27) |
|
NET PROFIT MARGIN |
% |
8.67 |
24.38 |
(19.52) |
|
RETURN ON EQUITY |
% |
24.79 |
79.18 |
(941.40) |
|
RETURN ON ASSET |
% |
7.57 |
21.83 |
(22.88) |
|
EARNING PER SHARE |
BAHT |
10.24 |
67.26 |
(42.22) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.69 |
0.72 |
0.98 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.27 |
2.63 |
40.15 |
|
TIME INTEREST EARNED |
TIMES |
39.53 |
80.04 |
(61.90) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
12.99 |
27.53 |
|
|
OPERATING PROFIT |
% |
(58.95) |
(305.56) |
|
|
NET PROFIT |
% |
(59.84) |
259.33 |
|
|
FIXED ASSETS |
% |
20.60 |
44.69 |
|
|
TOTAL ASSETS |
% |
15.75 |
66.98 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 12.99%. Turnover has increased from THB
2,896,207,061.00 in 2012 to THB 3,272,435,183.00 in 2013. While net profit has decreased
from THB 706,236,053.00 in 2012 to THB 283,623,396.00 in 2013. And total assets
has increased from THB 3,235,059,078.00 in 2012 to THB 3,744,714,716.00 in
2013.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
33.67 |
Acceptable |
Industrial
Average |
66.28 |
|
Net Profit Margin |
8.67 |
Impressive |
Industrial
Average |
2.02 |
|
Return on Assets |
7.57 |
Impressive |
Industrial
Average |
2.72 |
|
Return on Equity |
24.79 |
Impressive |
Industrial
Average |
6.97 |
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 33.67%. 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 8.67%, 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 7.57%, 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 24.79%, 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 :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.04 |
Satisfactory |
Industrial
Average |
1.26 |
|
Quick Ratio |
0.84 |
|
|
|
|
Cash Conversion Cycle |
38.76 |
|
|
|
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 1.04 times in 2013, decreased from 2.03 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 0.84 times in 2013,
decreased from 1.56 times, by excluding
inventory, the company may have problems meeting current liabilities.
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 39 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.69 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
2.27 |
Risky |
Industrial
Average |
1.53 |
|
Times Interest Earned |
39.53 |
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 39.53 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 0.69 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.96 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.87 |
Acceptable |
Industrial
Average |
1.35 |
|
Inventory Conversion Period |
77.94 |
|
|
|
|
Inventory Turnover |
4.68 |
Impressive |
Industrial
Average |
4.56 |
|
Receivables Conversion Period |
124.21 |
|
|
|
|
Receivables Turnover |
2.94 |
Acceptable |
Industrial
Average |
4.83 |
|
Payables Conversion Period |
163.39 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.94 and 2.46 in
2013 and 2012 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate revenue. A lower ratio may indicate
over extension and collection problems. Conversely, a higher ratio may indicate
an overtly stringent policy. In this case, the company's A/R ratio in 2013
increased from 2012. This would suggest the company had good performance in the
management of its debt collections.
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 96 days at the
end of 2012 to 78 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 3.78 times in year 2012 to 4.68 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.87 times and 0.9
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.62.24 |
|
UK Pound |
1 |
Rs.95.57 |
|
Euro |
1 |
Rs.71.01 |
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.