MIRA INFORM REPORT
|
Report No. : |
309736 |
|
Report Date : |
28.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
YAWATA ELECTRODE [THAILAND] CO., LTD. |
|
|
|
|
Registered Office : |
82 Moo 5, T. Khamthalaysor, A. Khamthalaysor, Nakornratchasima 30280 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
10.05.1973 |
|
|
|
|
Com. Reg. No.: |
0105516004810 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in manufacturer, exporter and distributor of welding electrode which can be divided into 3 main products e.g. Covered Arc Welding Electrodes, Gas Metal Arc Welding Wires and Gas Tungsten Arc Welding Wires. |
|
|
|
|
No of Employees : |
380 |
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 : |
Slow |
|
|
|
|
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 Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
THAILAND ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand achieved steady growth due largely to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Unemployment, at less than 1% of the labor force, stands as one of the lowest levels in the world, which puts upward pressure on wages in some industries. Thailand also attracts nearly 2.5 million migrant workers from neighboring countries. The Thai government in 2013 implemented a nation-wide 300 baht ($10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners. The Thai economy has weathered internal and external economic shocks in recent years. The global economic recession severely cut Thailand's exports, with most sectors experiencing double-digit drops. In late 2011 Thailand's recovery was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. The government approved flood mitigation projects worth $11.7 billion, which were started in 2012, to prevent similar economic damage, and an additional $75 billion for infrastructure over the following seven years. This was expected to lead to an economic upsurge but growth has remained slow, in part due to ongoing political unrest and resulting uncertainties. Spending on infrastructure will require re-approval once a new government is seated.
|
Source
: CIA |
Company
name
YAWATA
ELECTRODE [THAILAND] CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 82 MOO
5, T.
KHAMTHALAYSOR, A.
KHAMTHALAYSOR,
NAKORNRATCHASIMA 30280,
THAILAND
TELEPHONE : [66] 44
333-380-1
FAX :
[66] 44
333-378-9
E-MAIL
ADDRESS : info@yawata.co.th
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1973
REGISTRATION
NO. : 0105516004810 [Former
: 484/2516]
TAX
ID NO. : 3101109214
CAPITAL REGISTERED : BHT. 60,000,000
CAPITAL PAID-UP : BHT.
60,000,000
SHAREHOLDER’S PROPORTION : THAI :
66.00%
JAPANESE :
34.00%
FISCAL YEAR CLOSING DATE : DECEMBER
31
LEGAL
STATUS : PRIVATE
LIMITED COMPANY
EXECUTIVE : DR. PRAPIN
ABHINORASETH, THAI
MANAGING DIRECTOR
AND SALES &
MARKETING MANAGER
NO.
OF STAFF : 380
LINES
OF BUSINESS : WELDING
ELECTRODES
MANUFACTURER,
DISTRIBUTOR & 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 May 10, 1973
as a private
limited company under
the name style YAWATA
ELECTRODE [THAILAND] CO.,
LTD. It was
a joint-venture company
between Japanese groups
and Thai investor,
Lertvilai & Sons
Co., Ltd. by
Mr. Lertvilai Abhinoraseth,
who is well
known in industrial
and trade circles,
and two Japanese firms, Nittetsu Shoji Co., Ltd. and
Nippon Steel Welding Products
and Engineering Co., Ltd.,
with the objective to manufacture welding wires
and welding electrode for both
domestic and international
markets.
On November 2, 2010, Thanyanoraseth Co.,
Ltd., which was
a subsidiary of
the subject, was
merged its whole
business with the
subject.
Presently,
the subject is
one of the
leading producers of
welding consumables to
support domestic market,
as well as
international users worldwide.
Presently,
the major shareholders are Lertvilai & Sons Co.,
Ltd., Nippon Steel
& Sumikin Welding Co., Ltd, Nippon
Steel Trading Co., Ltd.,
and Siam Buntarik Co.,
Ltd., which are holding
around 55%, 23%,
11% and 11%
of the subject’s
total shares respectively. It
currently employs approximately
380 staff.
The
subject’s registered address was
initially at 18/1 Moo
1, Liabklong Pasicharoen
Rd., Nongkaem, Bangkok
10160.
In
2009, the subject’s registered
address was relocated
to 82 Moo 5, T. Khamthalaysor,
A. Khamthalaysor, Nakornratchasima 30280, and this
is the company’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Uaychai Abhinoraseth |
[x] |
Thai |
68 |
|
Dr. Prapin Abhinoraseth |
[x] |
Thai |
54 |
|
Mr. Tawatchai Abhinoraseth |
[x] |
Thai |
61 |
|
Mr. Sitthiboon Abhinoraseth |
[x] |
Thai |
36 |
|
Mr. Pairoj Abhinoraseth |
[x] |
Thai |
74 |
|
Mr. Akira Ono |
|
Japanese |
59 |
|
Mr. Yukio Nakano |
|
Japanese |
60 |
|
Mr. Makio Kikuchi |
|
Japanese |
60 |
AUTHORIZED
PERSON
Anyone
of the mentioned
directors [x] can
jointly sign with
anyone of the
rest directors on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Dr. Prapin
Abhinoraseth is the
Managing Director and
Sales & Marketing Manager.
He
is Thai nationality
with the age
of 54 years
old.
Mr. Chalermdej Komalakul
Na Nakorn is
the Factory Manager.
He
is Thai nationality.
BUSINESS OPERATIONS
The subject’s activity is a manufacturer,
exporter and distributor of welding electrode which
can be divided
into 3 main
products e.g. Covered
Arc Welding Electrodes,
Gas Metal Arc
Welding Wires and
Gas Tungsten Arc
Welding Wires.
Range
of products:
- Covered
Arc Welding Electrodes for
mild steel, high
tensile strength steel,
low temperature service
steel, stainless steel
and hard-facing industry
- Gas
Metal Arc Welding
Wires for mild
steel and 490N/mm2
high tensile strength
steel industry
- Gas
Tungsten Arc Welding
Wires for mild
steel and low
temperature service steel
industry
MAJOR BRAND
“YAWATA”
IMPORT [COUNTRIES]
50%
of raw materials
mainly steel, chemical
and etc., are imported from
Singapore, Japan, Taiwan,
Germany, Republic of
China and India.
MAJOR SUPPLIERS
Nippon
Steel Trading Co.,
Ltd. : Japan
Nippon
Steel & Sumikin Welding Co.,
Ltd. : Japan
Thai
Metal Trade Public
Company Limited :
Thailand
SALES [LOCAL]
70%
of its products
is sold locally
by Lertvilai &
Sons Co., Ltd.
EXPORT [COUNTRIES]
30%
of its products
is exported to
Singapore, Malaysia, Taiwan, Australia,
Sri Lanka, Indonesia, Africa,
Republic of China,
Philippines, Pakistan, Bangladesh,
Myanmar, Lebanon, Sudan,
Nigeria and the
countries in Europe.
MAJOR OVERSEA
CUSTOMERS
Scientex
Engineering & Trading Sdn.
Bhd. : Malaysia
New
Light House Pvt.
Ltd. : Pakistan
Tran
Khan Producing Service & Trading Co.,
Ltd. : Vietnam
Jeuni
Trading Contracting Co.,
Ltd. : Lebanon
Tan
Lien Minh Technology
and Trading Ltd. : Vietnam
PT.
Sawasti Tunggal Mandiri : Indonesia
Myanmar
Rightway Co., Ltd. : Myanmar
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
LITIGATION
Bankruptcy and Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the
subject found at
Legal Execution Department
for the past
five years.
Others
There are no
legal suits filed
against the subject
according 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.
BANKING
Bangkok Bank Public Co.,
Ltd.
The Siam Commercial
Bank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
approximately 380 office
staff and factory
workers.
LOCATION DETAILS
The premise is owned
for operating office, factory and
warehouse at the
heading address. Premise
is located in
provincial.
COMMENT
Subject
was established in
1973. It receives
initial know-how from
Nippon Steel & Sumikin Welding
Co., Ltd., one of
the world’s leading
welding electrode producers,
to manufacture welding
electrodes. Since its
inception, it has
quickly developed and
is capable of
producing a full
range of the
products with highest
quality that deliver
satisfaction to its
all customers.
FINANCIAL INFORMATION
The capital was
registered at Bht.
6 million, divided
into 6,000 shares
of Bht. 1,000 each.
The capital was
increased later as
the followings:
Bht. 8
million on May
9, 1979
Bht. 10
million on January
25, 1984
Bht. 30
million on July
4, 1989
Bht. 60
million on December
27, 2004
The latest registered
capital was divided
into 60,000 shares
of Bht. 1,000
each with fully
paid.
MAIN SHAREHOLDERS
: [as of
April 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Lertvilai & Sons
Co., Ltd. Nationality: Thai Address : 788-790
Charoenkrung Rd.,
Samphantawong, Bangkok |
32,908 |
54.85 |
|
Nippon Steel &
Sumikin Welding Co.,
Ltd. Nationality: Japanese Address : 8-3
Nihonbashi-Komisho, Shoku, Tokyo, Japan |
13,800 |
23.00 |
|
Nippon Steel Trading
Co., Ltd. Nationality: Japanese Address : 5-7
Kameito 1, Shomagoto-ku, Tokyo,
Japan |
6,600 |
11.00 |
|
Siam Buntarik Co.,
Ltd. Nationality: Thai Address : 947
Moo 12, Bangna-Trad
Rd.,
Bangna, Bangkok |
6,600 |
11.00 |
|
Others |
92 |
0.15 |
Total Shareholders :
15
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
13 |
39,600 |
66.00 |
|
Foreign - Japanese |
2 |
20,400 |
34.00 |
|
Total |
15 |
60,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Pipit Yiengyuksakol No.
8687
BALANCE
SHEET [BAHT]
The latest
financial figures published
for December 31,
2013, 2012 & 2011
were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
2,109,035.86 |
1,397,724.07 |
10,741,777.76 |
|
Trade Accounts & Other Receivable |
2,426,621.44 |
1,293,531.23 |
2,581,636.64 |
|
Related Company Receivable |
37,087,133.25 |
29,037,898.79 |
39,257,274.71 |
|
Inventories |
76,835,216.61 |
99,415,222.05 |
142,080,827.32 |
|
Packaging Materials |
5,532,933.92 |
5,896,648.39 |
5,627,549.50 |
|
Other Current Assets
|
4,399,465.32 |
2,049,968.49 |
2,037,253.89 |
|
|
|
|
|
|
Total Current Assets
|
128,390,406.40 |
139,089,993.02 |
202,326,319.82 |
|
Investment in Share Capital of Other Company |
8,552,031.55 |
8,940,296.51 |
500,000.00 |
|
Other Long-term Investment |
500,000.00 |
500,000.00 |
8,762,266.50 |
|
Fixed Assets |
129,995,131.32 |
144,041,479.07 |
155,009,438.23 |
|
Intangible Assets |
19,197.67 |
32,748.97 |
46,300.27 |
|
Other Non-current Assets |
3,132,203.03 |
4,587,121.05 |
4,699,718.05 |
|
Total Assets |
270,588,969.97 |
297,191,638.62 |
371,344,042.87 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institutions |
32,510,081.03 |
29,332,815.43 |
30,780,818.47 |
|
Trade Accounts & Other Payable |
158,492,294.88 |
163,894,606.50 |
143,698,462.13 |
|
Related Company Payable |
67,934,476.24 |
89,432,946.01 |
131,232,845.73 |
|
Current Portion of
Hire-purchase Payable |
3,277,117.50 |
5,743,795.83 |
5,459,395.55 |
|
Current Portion of Long-term
Loan |
24,672,787.28 |
24,000,000.00 |
24,790,000.00 |
|
Accrued Expenses |
11,138,678.31 |
9,014,819.13 |
12,232,131.39 |
|
Accrued Interest |
11,268,332.98 |
10,234,831.88 |
9,339,885.68 |
|
Accrued Income Tax |
4,949,091.20 |
- |
1,569,210.10 |
|
Accrued Dividend |
7,650,000.00 |
7,650,000.00 |
7,650,000.00 |
|
Other Current Liabilities |
2,507,161.07 |
1,655,895.56 |
2,213,974.16 |
|
|
|
|
|
|
Total Current Liabilities |
324,400,020.49 |
340,959,710.34 |
368,966,723.21 |
|
|
|
|
|
|
Long-term Loan from Financial Institutions |
39,000,000.00 |
13,672,787.28 |
37,672,787.28 |
|
Hire-purchase Vehicle |
3,176,407.00 |
5,782,973.49 |
6,751,451.93 |
|
Long-term Loan from Person
and Related Company |
123,095,726.00 |
178,349,831.00 |
191,624,051.00 |
|
Total Liabilities |
489,672,153.49 |
538,765,302.11 |
605,015,013.42 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 60,000 shares |
60,000,000.00 |
60,000,000.00 |
60,000,000.00 |
|
|
|
|
|
|
Capital Paid |
60,000,000.00 |
60,000,000.00 |
60,000,000.00 |
|
Retained Earning Appropriated for Statutory Reserve |
2,100,000.00 |
2,100,000.00 |
2,100,000.00 |
|
Other Reserve |
7,500,000.00 |
7,500,000.00 |
7,500,000.00 |
|
Unappropriated |
[288,683,183.52] |
[311,173,663.49] |
[303,270,970.55] |
|
Total Shareholders' Equity |
[219,083,183.52] |
[241,573,663.49] |
[233,670,970.55] |
|
Total Liabilities &
Shareholders' Equity |
270,588,969.97 |
297,191,638.62 |
371,344,042.87 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
645,847,099.64 |
655,592,878.83 |
545,809,617.56 |
|
Gain on Exchange Rate |
- |
1,058,932.78 |
54,892.03 |
|
Other Income |
1,052,470.64 |
1,007,674.52 |
612,828.18 |
|
Total Revenues |
646,899,570.28 |
657,659,486.13 |
546,477,337.77 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
535,873,047.82 |
597,684,861.28 |
472,148,370.69 |
|
Selling Expenses |
24,124,401.34 |
16,191,329.75 |
17,042,534.33 |
|
Administrative Expenses |
43,017,496.38 |
33,869,364.08 |
33,343,136.63 |
|
Additional Payment of Income Tax and Vat |
- |
2,924,274.00 |
- |
|
Total Expenses |
603,014,945.54 |
650,669,829.11 |
522,534,041.65 |
|
|
|
|
|
|
Profit before Financial
Cost & Income Tax |
43,884,624.74 |
6,989,657.02 |
23,943,296.12 |
|
Financial Cost |
[15,312,553.57] |
[14,462,168.13] |
[10,859,380.02] |
|
|
|
|
|
|
Profit before Income Tax |
28,572,071.17 |
[7,472,511.11] |
13,083,916.10 |
|
Income Tax |
[6,081,591.20] |
[430,181.83] |
[4,087,410.10] |
|
|
|
|
|
|
Net Profit / [Loss] |
22,490,479.97 |
[7,902,692.94] |
8,996,506.00 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.40 |
0.41 |
0.55 |
|
QUICK RATIO |
TIMES |
0.13 |
0.09 |
0.14 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.97 |
4.55 |
3.52 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.39 |
2.21 |
1.47 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
52.33 |
60.71 |
109.84 |
|
INVENTORY TURNOVER |
TIMES |
6.97 |
6.01 |
3.32 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
1.37 |
0.72 |
1.73 |
|
RECEIVABLES TURNOVER |
TIMES |
266.15 |
506.82 |
211.42 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
107.95 |
100.09 |
111.09 |
|
CASH CONVERSION CYCLE |
DAYS |
(54.25) |
(38.66) |
0.48 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
82.97 |
91.17 |
86.50 |
|
SELLING & ADMINISTRATION |
% |
10.40 |
7.64 |
9.23 |
|
INTEREST |
% |
2.37 |
2.21 |
1.99 |
|
GROSS PROFIT MARGIN |
% |
17.19 |
9.15 |
13.62 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
6.79 |
1.07 |
4.39 |
|
NET PROFIT MARGIN |
% |
3.48 |
(1.21) |
1.65 |
|
RETURN ON EQUITY |
% |
- |
- |
- |
|
RETURN ON ASSET |
% |
8.31 |
(2.66) |
2.42 |
|
EARNING PER SHARE |
BAHT |
374.84 |
(131.71) |
149.94 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
1.81 |
1.81 |
1.63 |
|
DEBT TO EQUITY RATIO |
TIMES |
(2.24) |
(2.23) |
(2.59) |
|
TIME INTEREST EARNED |
TIMES |
2.87 |
0.48 |
2.20 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(1.49) |
20.11 |
|
|
OPERATING PROFIT |
% |
527.85 |
(70.81) |
|
|
NET PROFIT |
% |
384.59 |
(187.84) |
|
|
FIXED ASSETS |
% |
(9.75) |
(7.08) |
|
|
TOTAL ASSETS |
% |
(8.95) |
(19.97) |
|
ANNUAL
GROWTH : ACCEPTABLE
An annual sales growth is -1.49%. Turnover has decreased from THB
PROFITABILITY
: SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
17.19 |
Acceptable |
Industrial Average |
33.74 |
|
Net Profit Margin |
3.48 |
Satisfactory |
Industrial Average |
3.88 |
|
Return on Assets |
8.31 |
Impressive |
Industrial Average |
5.04 |
|
Return on Equity |
- |
|
Industrial Average |
9.91 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from revenues after accounting for the
cost of goods sold. Gross profit margin serves as the source for paying
additional expenses and future savings. The company's figure is 17.19%. 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 3.48%.
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. Return on Assets ratio is
8.31%, 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 Uptrend
Return on Equity Uptrend
LIQUIDITY
: ACCEPTABLE
LIQUIDITY
RATIO
|
Current Ratio |
0.40 |
Risky |
Industrial Average |
1.63 |
|
Quick Ratio |
0.13 |
|
|
|
|
Cash Conversion Cycle |
(54.25) |
|
|
|
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 0.4 times in 2013, decreased from 0.41 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 0.13 times in 2013,
increased from 0.09 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 -55 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE
: ACCEPTABLE
LEVERAGE
RATIO
|
Debt Ratio |
1.81 |
Risky |
Industrial Average |
0.48 |
|
Debt to Equity Ratio |
(2.24) |
Risky |
Industrial Average |
0.94 |
|
Times Interest Earned |
2.87 |
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 2.87 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 1.81 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
: EXCELLENT
ACTIVITY
RATIO
|
Fixed Assets Turnover |
4.97 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
2.39 |
Impressive |
Industrial Average |
1.30 |
|
Inventory Conversion Period |
52.33 |
|
|
|
|
Inventory Turnover |
6.97 |
Impressive |
Industrial Average |
4.06 |
|
Receivables Conversion Period |
1.37 |
|
|
|
|
Receivables Turnover |
266.15 |
Impressive |
Industrial Average |
5.17 |
|
Payables Conversion Period |
107.95 |
|
|
|
The company's Account Receivable Ratio is calculated as 266.15 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 61 days at the
end of 2012 to 52 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 6.01 times in year 2012 to 6.97 times
in year 2013.
The company's Total Asset Turnover is calculated as 2.39 times and 2.21
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 Downtrend
Inventory Turnover Uptrend
Receivables Turnover Downtrend
|
Key Areas |
Score |
Weight |
Weighted
Score |
|
LIQUIDITY RATIO |
1.33 |
25.00 |
33.25 |
|
ACTIVITY RATIO |
4.00 |
20.00 |
80.00 |
|
PROFITABILITY
RATIO |
2.00 |
25.00 |
50.00 |
|
LEVERAGE RATIO |
1.33 |
10.00 |
13.30 |
|
ANNUAL GROWTH |
1.60 |
20.00 |
32.00 |
|
Total Weight
(excluding - - Score) |
|
100.00 |
|
|
|
|
|
208.55 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 61.79 |
|
|
1 |
Rs. 95.42 |
|
Euro |
1 |
Rs. 69.28 |
INFORMATION DETAILS
|
Analysis Done by
: |
KRN |
|
|
|
|
Report Prepared
by : |
DPT |
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.