MIRA INFORM REPORT
|
Report No. : |
302059 |
|
Report Date : |
08.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
KRUNGTHAI
FOOD PUBLIC COMPANY
LIMITED |
|
|
|
|
Formerly Known as : |
KRUNGTHAI FEEDMILL PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
312 Rama 2
Rd., Bangmod, Jomthong,
Bangkok 10150, by
the Jomthong District
Office |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
26.09.1978 |
|
|
|
|
Com. Reg. No.: |
0107537001463 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
· engaged in manufacturing and distributing various kinds of Animal Feeds for Poultry, Cattle, Swine, Aquatic and Pet Farms · subject is also importer and distributor of Layer Chicken Breed with 1 day and 17 weeks old, under the breed name “BOVANS BROWN”, as well as meat chicken breed with 1 day old, under the breed name “COBB”. Subject product
lines are as follows:- · Poultry Feed · Fish Feed · Frog Feed · Shrimp Feed · Swine Feed · Duck Feed · Quail Feed · Dairy Cow/Beef Cattle · Goat Feed · Dog Feed |
|
|
|
|
No of Employees : |
approximately 1,000 [Including Office, Sales Staff and Factory 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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
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
KRUNGTHAI FOOD PUBLIC COMPANY LIMITED
[FORMER : KRUNGTHAI FEEDMILL PUBLIC COMPANY LIMITED]
SUMMARY
BUSINESS
ADDRESS : 312
RAMA 2 ROAD,
BANGMOD, JOMTHONG,
BANGKOK 10150,
THAILAND
TELEPHONE : [66] 2473-8000
FAX :
[66] 2473-8380-1,
2473-8398
E-MAIL
ADDRESS : sudthichoke-ngam@gfpt.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1978
REGISTRATION
NO. : 0107537001463
TAX
ID NO. : 3101151763
CAPITAL REGISTERED : BHT. 400,000,000
CAPITAL PAID-UP : BHT.
400,000,000
SHAREHOLDER’S PROPORTION : THAI :
99.97%
FOREIGN :
0.03%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
VIRACH SIRIMONGKOLKASEM, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 1,000
LINES
OF BUSINESS : ANIMAL FEED
MANUFACTURER AND
DISTRIBUTOR
CORPORATE
PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was initially
established on September 26, 1978
as a private
limited company under
the registered name “Krungthai Feedmill
Co., Ltd.”, by
Thai groups, with the
business objective to manufacture and
distribute animal feed to local market.
On November 11, 1988,
the subject was
listed on the
Stock Exchange of
Thailand, then its
status was converted
to public limited
company under the
name “Krungthai Feedmill
Public Company Limited”.
On April 11,
2014, its registered
name was changed
to KRUNGTHAI FOOD
PUBLIC COMPANY LIMITED.
Subject currently employs
approximately 1,000 staff.
The subject is
a subsidiary of
GFPT Public Company
Limited, which is
the parent company
of the GFPT
group of companies.
On August 31,
1998, the subject
was withdrawn from
the Stock Exchange
of Thailand.
The subject achieved
the international standard
ISO 9001 and ISO 22000
certifications, as well
as the Global
Good Agricultural Practice
standard.
The subject’s registered
address was initially
at 69/6-13 Moo
5, Suksawad Rd.,
Ratchaburana, Bangkok.
Later, subject’s registered
address was relocated
to 118 Moo 4,
Rama 2 Rd., Bangmod,
Jomthong, Bangkok 10150.
In
2011, its registration
address was changed
to 312 Rama
2 Rd., Bangmod,
Jomthong, Bangkok 10150,
by the Jomthong
District Office, but
both are the
same location, and
this is the
company’s current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality
|
Age
|
|
|
|
|
|
|
Mr. Prasit Sirimongkolkasem |
[x] |
Thai
|
74 |
|
Mr. Virach Sirimongkolkasem |
[x] |
Thai |
65 |
|
Mrs. Somsiri Ingpochai |
[x] |
Thai |
67 |
|
Mr. Anan Sirimongkolkasem |
[x] |
Thai |
63 |
|
Mrs. Pranee Parksook |
|
Thai |
61 |
AUTHORIZED PERSON
Any two of
the mentioned directors
[x] can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Virach Sirimongkolkasem is
the Managing Director.
He is Thai
nationality with the
age of 65
years old.
Mrs. Somsiri Ingpochai
is the Executive
Director & Deputy
Managing Director.
She is Thai
nationality with the
age of 67
years old.
Mr. Anan Sirimongkolkasem is
the Executive Director.
He is Thai
nationality with the
age of 63
years old.
Mrs. Pranee Parksook is
the Executive Director.
She is Thai
nationality with the
age of 61
years old.
Mr. Prachak Teerakulpisuth is
the Deputy Managing
Director.
He is Thai
nationality.
Mr. Sujin Sirimongkolkasem is
the Deputy Managing
Director/Marketing Director.
He is Thai
nationality.
Mr. Sinchai Teerawattanakul is
the Sales Manager.
He is Thai
nationality.
Mr. Khomsan Promnopas
is the Factory
Manager.
He is Thai
nationality.
BUSINESS
OPERATIONS
The subject
is engaged in
manufacturing and distributing
various kinds of
animal feeds for
poultry, cattle, swine,
aquatic and pet
farms. The products
and brands are
as follows:
Product Brand
Poultry feed “P.
CHAROENPHAND”, “KT”, “GF”,
“TOP-MIX”
Fish feed “P.
CHAROENPHAND”, “KT”, “GF”,
“PC”, “AQUA”
“ATTRACT”, “JACKPOT”,
“SUPERMIX”
Frog feed “FROG”, “HI-FROG”
Shrimp feed “GF”, “P. CHAROENPHAND”, “POPWER P”,
“TOP-MIX”
Swine feed “KT”, “P. CHAROENPHAND”
Duck feed “P.
CHAROENPHAND”, “KT”
Quail feed “P.
CHAROENPHAND”, “KT”
Dairy cow/Beef
cattle “KT”
Goat feed “P.
CHAROENPHAND”, “KT”
Dog feed “K-9”
The subject
is also importer
and distributor of
layer chicken breed
with 1 day
and 17 weeks
old, under the
breed name “BOVANS BROWN”,
as well as
meat chicken breed
with 1 day
old, under the
breed name “COBB”.
PRODUCTION CAPACITY
1,111,000 tons per
annum
PURCHASE
Raw materials such as
corn, soybean tailings,
fish meal, feed
supplement and etc., are purchased
from both local
and overseas suppliers
in Australia, New Zealand,
Indonesia, Germany, France,
India, Brazil, Africa, Republic of
China, Malaysia, Vietnam
and Myanmar.
MAJOR SUPPLIERS
GFPT Public Company
Limited : Thailand
BASF [Thai] Ltd. : Thailand
SALES [LOCAL]
80% of the
products is sold
locally to the
GFPT group of
companies, and the
remaining 20% is
to general customers.
MAJOR CUSTOMERS
Krung Thai Farm
Co., Ltd. : Thailand
M.K.S. Farm Co.,
Ltd. : Thailand
GP Breeding Co.,
Ltd. : Thailand
ND Feedmill Co.,
Ltd. : Thailand
Phuket Feedmill Shop : Thailand
PARENT COMPANY
GFPT Public Company
Limited
SUBSIDIARY/AFFILIATED COMPANIES
M.K.S. Farm Co.,
Ltd.
Business Type :
Chicken farm business
Krungthai Farm Co.,
Ltd.
Business Type :
Chicken farm business
GP Breeding Co.,
Ltd.
Business Type :
Chicken farm business
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
T/T.
BANKING
Bangkok Bank Public Co.,
Ltd.
Head office,
333 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
Kasikornbank Public Co.,
Ltd.
[Head office,
1 Kasikorn Lane,
Ratburana Rd., Ratburana,
Bangkok 10140]
[Nongprue branch,
291 Moo 2,
Banbueng-Klaeng Rd., T.Nongphaikaew, A. Banbueng,
Chonburi 20220]
The Siam Commercial
Bank Public Co.,
Ltd.
[Samutprakarn branch,
211 Taiban Rd.,
T. Paknam, A. Muang, Samutprakarn
10280]
EMPLOYMENT
The subject
currently employs
approximately 1,000 staff.
[office, sales staff
and factory workers]
LOCATION DETAILS
The premise is
owned for operating
administrative office at
the heading address. It
is located in
commercial/residential area.
Factory I
: 266 Moo 11,
Soi Sor. Thaiseree
2, T. Naiklongbangplakod, A. Phrasamutjaedee,
Samutprakarn 10290. Tel.:
[66] 2473-7800 Fax:
[66] 2473-7878.
Factory II : 135/2 Moo
4, T. Klongkiw, A. Banbung,
Chonburi 20220.
Tel.:
[66] 38 442-700,
Fax: [66] 38
442-788.
There are 7 branches and sales
office located in
provincial: Nakornratchasima, Suratthani,
Songkhla, Chantaburi, Trang,
Lamphun and Pang-nga
province.
COMMENT
The
company was formed
in 1978 as a
manufacturer and distributor
of animal feed
products. Demand of animal
feed has gradually
increased since Thailand
is the major country in the region that exports
poultry products to world market.
Local consumption of animal feeds has steady grown. Subject posted its strong
business performance in
2013. It is
considered a solid company.
FINANCIAL
INFORMATION
The capital was
registered at Bht.
20,000,000 divided into
200,000 shares of
Bht. 100 each.
The capital was
increased later as
followings:
Bht. 50,000,000
on June 2,
1981
Bht. 60,000,000
on March 12,
1982
Bht. 70,000,000
on June 1,
1985
Bht. 100,000,000
on October 30,
1984
Bht. 200,000,000
on August 2,
1988
Bht. 300,000,000
on July 7,
1989
The latest registered
capital was increased
to Bht. 400,000,000
divided into 40,000,000
shares of Bht.
10 each with
fully paid.
MAIN SHAREHOLDERS : [as at
April 4, 2014]
|
NAME |
HOLDING
|
% |
|
|
|
|
|
GFPT Public Company
Limited Nationality: Thai Address : 312
Rama 2 Rd.,
Bangmod,
Jomthong, Bangkok 10150 |
39,146,622 |
97.87 |
Others
|
853,378 |
2.13 |
Total Shareholders : 345
Share Structure [as
at April 4,
2014]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
337 |
39,986,100 |
99.97 |
|
Foreign |
8 |
13,900 |
0.03 |
|
Total |
345 |
40,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Ampol Chamnongwat
No. 4663
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 |
106,524,369.62 |
93,502,248.40 |
70,977,359.34 |
|
Trade Accounts & Other
Receivable |
1,902,902,956.64 |
1,929,474,601.89 |
1,308,612,001.09 |
|
Inventories |
2,046,291,540.53 |
3,069,761,248.32 |
1,879,754,225.40 |
|
Other Current Assets
|
3,536,378.22 |
7,797,126.58 |
2,530,054.70 |
|
Total Current Assets
|
4,059,255,245.01 |
5,100,535,225.19 |
3,261,873,640.53 |
|
Other Long-term Investment |
5,000.00 |
5,000.00 |
5,000.00 |
|
Poultry Breeder |
48,095,472.36 |
58,410,409.95 |
60,876,360.95 |
|
Real Estate for
Investment |
121,740,515.44 |
21,043,817.74 |
17,450,753.90 |
|
Land & Building Non
Operation |
1,431,700,722.09 |
1,494,491,864.84 |
1,383,919,141.91 |
|
Deferred Income Tax Assets |
40,288,415.15 |
33,245,687.19 |
- |
|
Other Non-current Assets
|
10,195,915.28 |
30,332,431.24 |
20,860,282.72 |
|
Total Assets |
5,711,281,285.33 |
6,738,064,436.15 |
4,744,985,180.01 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
350,000,000.00 |
1,810,989,975.49 |
486,223,163.49 |
|
Trade Accounts & Other Payable |
416,338,197.10 |
664,125,999.39 |
384,629,409.10 |
|
Accrued Income Tax |
- |
- |
19,685,477.43 |
|
Estimated Short-term Liabilities |
- |
- |
12,005,600.00 |
|
Current Portion of Long-term
Liabilities |
978,400,000.00 |
- |
- |
|
Other Current Liabilities |
11,571,039.07 |
7,406,465.00 |
- |
|
|
|
|
|
|
Total Current Liabilities |
1,756,309,236.17 |
2,482,522,439.88 |
902,543,650.02 |
|
Long-term Loan from Related
Person |
- |
978,400,000.00 |
978,400,000.00 |
|
Employee Benefit Obligation |
99,044,788.13 |
92,668,765.94 |
87,335,409.00 |
|
Other Non-current Liabilities |
4,326,617.00 |
2,271,617.00 |
248,367.00 |
|
Total Liabilities |
1,859,680,641.30 |
3,555,862,822.82 |
1,968,527,426.02 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
value authorized, issued
and fully paid share
capital 40,000,000 shares |
400,000,000.00 |
400,000,000.00 |
400,000,000.00 |
|
|
|
|
|
|
Capital Paid |
400,000,000.00 |
400,000,000.00 |
400,000,000.00 |
|
Premium on Share
Capital |
50,000,000.00 |
50,000,000.00 |
50,000,000.00 |
|
Retained Earning Appropriated Statutory Reserve |
40,000,000.00 |
40,000,000.00 |
40,000,000.00 |
|
Unappropriated |
3,361,600,644.03 |
2,692,201,613.33 |
2,286,457,753.99 |
|
Total Shareholders' Equity |
3,851,600,644.03 |
3,182,201,613.33 |
2,776,457,753.99 |
|
Total Liabilities & Shareholders' Equity |
5,711,281,285.33 |
6,738,064,436.15 |
4,744,985,180.01 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Sales Income |
11,380,946,226.01 |
11,390,683,497.47 |
10,473,880,140.20 |
|
Other Income |
91,047,435.23 |
90,044,159.77 |
65,260,939.36 |
|
Total Revenues |
11,471,993,661.24 |
11,480,727,657.24 |
10,539,141,079.56 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
10,273,549,302.26 |
10,622,107,499.83 |
9,128,938,058.58 |
|
Selling Expenses |
245,406,397.26 |
248,238,602.34 |
230,993,706.16 |
|
Administrative Expenses |
177,028,810.12 |
159,572,039.75 |
175,630,572.15 |
|
Directors’ Remuneration |
25,925,635.00 |
17,213,539.00 |
- |
|
Financial Cost |
87,727,213.86 |
61,097,804.17 |
[63,970,349.97] |
|
Total Expenses |
10,809,637,358.50 |
11,108,229,485.09 |
9,599,532,686.86 |
|
|
|
|
|
|
Profit before Income Tax |
662,356,302.74 |
372,498,172.15 |
939,608,392.70 |
|
Income Tax |
[7,042,727.96] |
[3,141,229.99] |
[43,208,366.20] |
|
Net Profit / [Loss] |
669,399,030.70 |
369,356,942.16 |
896,400,026.50 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.31 |
2.05 |
3.61 |
|
QUICK RATIO |
TIMES |
1.14 |
0.81 |
1.53 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.95 |
7.62 |
7.57 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.99 |
1.69 |
2.21 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
72.70 |
105.48 |
75.16 |
|
INVENTORY TURNOVER |
TIMES |
5.02 |
3.46 |
4.86 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
61.03 |
61.83 |
45.60 |
|
RECEIVABLES TURNOVER |
TIMES |
5.98 |
5.90 |
8.00 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
14.79 |
22.82 |
15.38 |
|
CASH CONVERSION CYCLE |
DAYS |
118.94 |
144.49 |
105.38 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
90.27 |
93.25 |
87.16 |
|
SELLING & ADMINISTRATION |
% |
3.71 |
3.58 |
3.88 |
|
INTEREST |
% |
0.77 |
0.54 |
0.61 |
|
GROSS PROFIT MARGIN |
% |
10.53 |
7.54 |
13.46 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.82 |
3.27 |
8.97 |
|
NET PROFIT MARGIN |
% |
5.88 |
3.24 |
8.56 |
|
RETURN ON EQUITY |
% |
17.38 |
11.61 |
32.29 |
|
RETURN ON ASSET |
% |
11.72 |
5.48 |
18.89 |
|
EARNING PER SHARE |
BAHT |
16.73 |
9.23 |
22.41 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.33 |
0.53 |
0.41 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.48 |
1.12 |
0.71 |
|
TIME INTEREST EARNED |
TIMES |
7.55 |
6.10 |
14.69 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(0.09) |
8.75 |
|
|
OPERATING PROFIT |
% |
77.81 |
(60.36) |
|
|
NET PROFIT |
% |
81.23 |
(58.80) |
|
|
FIXED ASSETS |
% |
(4.20) |
7.99 |
|
|
TOTAL ASSETS |
% |
(15.24) |
42.00 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -0.09%. Turnover has decreased from THB
11,390,683,497.47 in 2012 to THB 11,380,946,226.01 in 2013. While net profit
has increased from THB 369,356,942.16 in 2012 to THB 669,399,030.70 in 2013.
And total assets has decreased from THB 6,738,064,436.15 in 2012 to THB
5,711,281,285.33 in 2013.
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
10.53 |
Deteriorated |
Industrial
Average |
22.26 |
|
Net Profit Margin |
5.88 |
Impressive |
Industrial
Average |
3.96 |
|
Return on Assets |
11.72 |
Impressive |
Industrial
Average |
8.92 |
|
Return on Equity |
17.38 |
Acceptable |
Industrial
Average |
23.62 |
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 10.53%. 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 5.88%,
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
11.72%, 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. When compared with the
industry average, it was lower, the company's figure is 17.38%.
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 |
2.31 |
Impressive |
Industrial
Average |
1.68 |
|
Quick Ratio |
1.14 |
|
|
|
|
Cash Conversion Cycle |
118.94 |
|
|
|
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 2.31 times in 2013, increased from 2.05 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 1.14 times in 2013,
increased from 0.81 times, although excluding inventory so the company still
have good short-term financial strength.
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 119 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.33 |
Impressive |
Industrial
Average |
0.80 |
|
Debt to Equity Ratio |
0.48 |
Impressive |
Industrial
Average |
2.08 |
|
Times Interest Earned |
7.55 |
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 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 7.56 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 0.33 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 Uptrend
Times Interest Earned Stable
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
7.95 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.99 |
Acceptable |
Industrial
Average |
2.90 |
|
Inventory Conversion Period |
72.70 |
|
|
|
|
Inventory Turnover |
5.02 |
Acceptable |
Industrial
Average |
8.02 |
|
Receivables Conversion Period |
61.03 |
|
|
|
|
Receivables Turnover |
5.98 |
Acceptable |
Industrial
Average |
10.33 |
|
Payables Conversion Period |
14.79 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.98 and 5.90 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 105 days at the
end of 2012 to 73 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 3.46 times in year 2012 to 5.02 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.99 times and 1.69
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.63.45 |
|
UK Pound |
1 |
Rs.95.99 |
|
Euro |
1 |
Rs.75.28 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
MNL |
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.