MIRA
INFORM REPORT
|
Report No. : |
329439 |
|
Report Date : |
02.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
SIAM STEEL SERVICE CENTER PUBLIC COMPANY LIMITED |
|
|
|
|
Formerly Known As : |
SIAM STEEL SERVICE CENTER COMPANY LIMITED |
|
|
|
|
Registered Office : |
51/3 Moo 2, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
30.09.1985 |
|
|
|
|
Com. Reg. No.: |
0107537002052 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer and Distributor of Steel Part and Related Products. |
|
|
|
|
No. of Employees : |
982 |
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 |
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|
|
|
Payment Behaviour : |
No Complaints |
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|
|
|
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 |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
THAILAND - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise
economy, generally pro-investment policies, and strong export industries,
Thailand has historically had a strong economy due in part to 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 4
million migrant workers from neighboring countries, and faces labor shortages.
Following the May 2014 coup d’tat, 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 and address
SIAM STEEL SERVICE CENTER PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 51/3
MOO 2, POOCHAOSAMINGPRAI ROAD,
BANGYAPRAEK, PHRAPRADAENG,
SAMUTPRAKARN 10130,
THAILAND
TELEPHONE : [66] 2385-9251-2
FAX :
[66] 2385-9241,
2385-9253, 2385-9274
E-MAIL
ADDRESS : webmaster@ssscth.com
marketing@ssscth.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1985
REGISTRATION
NO. : 0107537002052 [Former: BOR
MOR JOR. 452]
TAX
ID NO. : 3271011089
CAPITAL REGISTERED : BHT. 639,999,880
CAPITAL PAID-UP : BHT.
639,997,880
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. SURASAK KUNANANTAKUL,
THAI
PRESIDENT
NO.
OF STAFF : 982
LINES
OF BUSINESS : STEEL
PARTS AND RELATED
PRODUCTS
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 established on September 30,
1985, originally as a
private limited company
under the registered
name “Siam Steel
Service Center Company
Limited” by a
joint venture among
Siam Steel International Public
Company Limited, Thailand, Okaya
& Co., Ltd.,
and Toyota Tsusho Corporation, Japan, in
order to manufacture wide
range of steel
parts and related
products for domestic
market.
On
June 8, 1994,
the subject’s status
was converted to
a public limited
company under the
name SIAM STEEL SERVICE CENTER
PUBLIC COMPANY LIMITED, and was
listed on the Stock Exchange of
Thailand on January 15, 1996,
under the symbolic “SSSC”. It currently employs
982 staff.
The subject achieved the
ISO 9001 : 2000 and
ISO 14001 certificate
by RWTUV [Thailand]
Limited on November
25, 2002 and
July 9, 2004,
respectively, as well
as OHSAS 18001 : 1999 by
YUV NORD [Thailand] Limited,
on June 11,
2007.
The
subject’s registered address
is 51/3 Moo 2,
Poochaosamingprai Rd., Bangyapraek,
Phrapradaeng, Samutprakarn 10130,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Wanchai Kunanantakul :
Chairman |
[x] |
Thai |
77 |
|
Mr. Surasak Kunanantakul |
[x] |
Thai |
51 |
|
Mr. Damri Sukhotanang |
|
Thai |
66 |
|
Mr. Hiroyuki Inoguchi |
[-] |
Japanese |
47 |
|
Mr. Shigeji Anraku |
[-] |
Japanese |
48 |
|
Mr. Pongsak Angsupun |
|
Thai |
77 |
|
Mr. Surapol Kunanantakul |
[x] |
Thai |
48 |
|
Mr. Sittichai Kunanantakul |
|
Thai |
45 |
|
Mrs. Naphaporn Hoonthanasevee |
|
Thai |
48 |
|
Mr. Toshiaki Saito |
[-] |
Japanese |
60 |
|
Mr. Vichit Vuthisombut |
|
Thai |
74 |
|
Mr. Sucharit Koontanakulvong |
|
Thai |
60 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can jointly sign
with one of
the directors [-]
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Surasak Kunanantakul is
the President.
He is Thai
nationality with the
age of 51
years old.
Mr. Toshiaki Saito is
the Vice President.
He is Japanese
nationality with the
age of 60
years old.
Mr. Surapol Kunanantakul is
the Vice President.
He is Thai
nationality with the
age of 48
years old.
Mr. Shigeji Anraku is
the Senior General
Manager [Metal Construction Products].
He is Japanese nationality with
the age of
48 years old.
Mr. Boonchai Chiercharoenthanakij is
the Senior General
Manager [Account,
Administration & Finance].
He is Thai
nationality.
Mr. Naowarat Chanamool is
the General Manager [Production].
He is Thai nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing, servicing
and distributing wide
range of steel
parts for general purpose [steels of various types
with thickness, sizes and shapes according
sheets, bended sheet
and etc.], and
building & construction
purpose [various types
and shapes of
steel as well
as installation work:
roofing, siding, flooring,
flashing, space frame, steel panel, structural steel and
etc.]. It also
provides processing service
such as slitting, shearing,
forming, blanking, piercing,
bending, pressing, welding
and etc.
Its products are
divided into 3
categories as follows:
1. Industrial steel parts:
cutting sheet, slitting
coil and etc.
2. Steel parts for
construction: aluminized coating,
galvanized colored, aluzinc
colored,
aluzinc and
galvanized
3. Steel forming parts
and other products for
electrical and electronics,
furniture,
automobiles, steel sheet shuttle
and etc., as
well as steel
pipe modified.
PRODUCTION
600,000 tons per
annum
The subject’s current
production is around
7% of market
shares.
PURCHASE
Raw materials: aluminum
coated sheet, terne sheets,
silicon sheets, hot & cold rolled
steel sheet, hot dip
galvanized steel, colored
sheet, stainless steel
and accessories are purchased
from suppliers and agents
both domestic and
overseas, mainly in
Japan,
Republic of China,
Taiwan, Germany and
United States of
America.
MAJOR
SUPPLIERS
Okaya & Co.,
Ltd. : Japan [40-50%]
C. Siam Suriya Co.,
Ltd. : Thailand [40-50%]
SALES
100% of
the products is
sold and serviced
locally by wholesale
to manufacturers and
end-users as follows:
- Automotive Industry [37%]
- Construction Industry [21%]
- General Industry [20%]
- Electrical and
Electronic Industry [19%]
- Furniture Industry [3%]
MAJOR CUSTOMERS
Siam Steel International
Public Co., Ltd.
Siam Nippon Steel
Pipe Co., Ltd.
Siam Matsushita Steel
Co., Ltd.
REVENUE STRUCTURE
|
|
2014
|
2013 |
||
|
Products /
services |
Million Bht. |
% |
Million Bht. |
% |
|
|
|
|
|
|
|
Industrial Steel Parts |
|
|
|
|
|
- Cutting steel
for sales |
3,506.54 |
63.55 |
3,889.10 |
61.39 |
|
- Steel cutting service |
350.25 |
6.34 |
363.20 |
5.73 |
|
Steel Parts for
construction |
1,406.06 |
25.48 |
1,848.00 |
29.17 |
|
Steel Forming Parts |
189.59 |
3.44 |
160.82 |
2.54 |
|
Transportation income |
58.39 |
1.06 |
66.23 |
1.04 |
|
Rental Service |
7.15 |
0.13 |
7.90 |
0.13 |
|
|
|
|
|
|
|
Total Revenue |
5,517.98 |
100.00 |
6,335.25 |
100.00 |
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 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.
BANKING
Bangkok Bank Public
Co., Ltd.
[Poochaosamingprai Branch :
Poochaosamingprai Rd., Phrapradaeng,
Samutprakarn]
The Siam Commercial
Bank Public Co.,
Ltd.
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs 982 office
staff and factory
workers.
LOCATION DETAILS
The
premises is owned
for administrative office
and factory I
at the heading
address. Premise is
located in industrial
area.
Factory
II [Metal Construction
Products] is located
at 51/11 Poochaosamingprai Rd.,
Bangyapraek, Phrapradaeng, Samutprakarn
10130.
Tel.
: [66] 2385-9268-73,
2755-8684-6, 2758781-4, 2755-8816-8
Fax
: [66] 2385-9274,
2385-9243
Factory
III is located
at 60/6 Moo
3, Mapyangporn, Pluakdaeng,
Rayong 21140.
Tel.
: [66] 38 891-176-8, 38 891-750-4
Fax
: [66] 38 891-1179
COMMENT
In 2014, the
decline of steel
production and usage
due to the decrease in domestic
demand were resulted from
domestic political conflict
affecting the private sector
investment to decline and
the government investment
policy to slowdown
or to halt. Consumers were more
precautious in spending as
the price of commodities was
considerably high.
As a result
of the slow
recovery of domestic
economy, the weakness
of income earned
in the agricultural sector coupled with
the slowdown of world
economy and exporting, steel
sheet production and
use in the
downstream industries are
expected to be stable
in 2015 e.g. construction,
automotive, electrical
appliances, and furniture.
FINANCIAL INFORMATION
The capital
was registered at
Bht. 100,000,000 divided into
10,000,000 shares of
Bht. 10 each.
The
capital was increased
later as following:
Bht. 224,000,000 on
May 18, 1994
Bht. 320,000,000 on
June 8, 1994
The
latest registered capital was
increased to Bht. 639,999,880
divided into 63,999,988 shares
of Bht. 10
each.
THE
SHAREHOLDERS LISTED WERE
: [as at
May 12, 2015]
at Bht. 639,997,880 of
capitalization.
|
NAME |
HOLDING
|
% |
|
|
|
|
|
Okaya & Co.,
Ltd. |
19,040,000 |
29.75 |
|
Siam Steel International Public
Company Limited |
14,565,600 |
22.76 |
|
Thai NVDR Co.,
Ltd. |
2,935,237 |
4.58 |
|
Metal One Corporation |
2,240,000 |
3.50 |
|
Toyota Tsusho Corporation |
2,240,000 |
3.50 |
|
Mr. Surapol Kunanantakul |
1,223,040 |
1.91 |
|
Mr. Vijit Ratanasrivilai |
1,184,766 |
1.85 |
|
Mr. Wanchai Kunanantakul |
864,640 |
1.35 |
|
Mr. Anucha Tantraporn |
836,400 |
1.31 |
|
Mr. Harwinder Palsingh Narink |
729,500 |
1.14 |
|
Mr. Sitthichai Kunanantakul |
613,760 |
0.96 |
|
Mrs. Orachorn Kunanantakul |
604,800 |
0.95 |
|
Mr. Charnchai Viboonkijvorakul |
600,266 |
0.94 |
|
Bangkok Chayoratn Co.,
Ltd. |
528,000 |
0.83 |
|
Others |
15,793,779 |
24.67 |
Total Shareholders :
1,728
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Mrs. Suvimol Kritayakian No.
2982
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 |
118,629,309 |
175,862,974 |
184,637,649 |
|
Trade accounts receivable
|
|
|
|
|
General customers |
1,038,467,678 |
1,164,970,244 |
1,404,981,086 |
|
Related companies |
51,958,253 |
87,672,304 |
80,434,387 |
|
Amounts due from related companies |
4,964,277 |
1,039,807 |
5,376,957 |
|
Short-term loan to subsidiary company |
17,150,756 |
10,238,447 |
26,217,702 |
|
Unbilled accrued income |
123,118,488 |
187,594,485 |
197,996,080 |
|
Inventories |
1,325,898,622 |
1,465,814,430 |
1,566,206,629 |
|
Advances for purchases for inventories for customers |
11,453,397 |
8,878,807 |
6,087,382 |
|
Retentions receivable |
20,943,888 |
37,585,490 |
29,857,318 |
|
Other current assets
|
19,450,383 |
18,578,559 |
19,045,926 |
|
|
|
|
|
|
Total Current Assets
|
2,732,035,051 |
3,158,235,547 |
3,520,841,116 |
|
|
|
|
|
|
Non-current Assets |
|
|
|
|
Long-term investment |
|
|
|
|
Investments in subsidiary and related company |
26,383,641 |
26,383,641 |
26,383,641 |
|
Other long-term investments |
273,237 |
273,237 |
265,842 |
|
Investment property |
31,355,328 |
24,227,328 |
24,227,328 |
|
Property, plant and equipment |
1,286,469,865 |
1,283,846,094 |
1,248,351,122 |
|
Refundable income tax
withheld at sources |
33,120,162 |
48,435 |
19,543 |
|
Deferred income tax
assets |
6,552,101 |
8,510,061 |
12,827,893 |
|
Other Non - current Assets |
6,877,249 |
6,849,455 |
6,751,113 |
|
Total non-current assets |
1,391,031,583 |
1,350,138,251 |
1,318,826,482 |
|
Total Assets |
4,123,066,634 |
4,508,373,798 |
4,839,667,598 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 [Restated] |
|
|
|
|
|
|
Bank overdraft and short-term
loans from financial institutions |
1,075,607,820 |
1,527,531,374 |
2,032,275,967 |
|
Trade accounts and
notes payable |
|
|
|
|
General suppliers |
137,164,577 |
151,005,299 |
166,000,086 |
|
Related companies |
172,400,435 |
176,235,487 |
230,754,243 |
|
Advances from customers |
54,109,323 |
21,074,196 |
35,631,264 |
|
Accrued interest payable |
3,657,920 |
4,325,929 |
11,911,886 |
|
Accrued bonuses |
84,605,374 |
92,990,480 |
84,811,932 |
|
Accrued income tax |
- |
25,673,830 |
25,584,485 |
|
Other current liabilities |
26,180,219 |
32,505,403 |
35,235,606 |
|
|
|
|
|
|
Total Current Liabilities |
1,553,725,668 |
2,031,341,998 |
2,622,205,469 |
|
Liabilities under employee benefits obligation |
54,762,014 |
43,902,590 |
38,899,071 |
|
Total Liabilities |
1,608,487,682 |
2,075,244,588 |
2,661,104,540 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share capital common share at Baht 10 par value |
|
|
|
|
-
Authorized
63,999,988 shares |
639,999,880 |
639,999,880 |
639,999,880 |
|
-
Issued and fully paid-up
63,999,788 shares |
639,997,880 |
639,997,880 |
639,997,880 |
|
Retained Earnings: Appropriated for statutory reserve |
63,999,988 |
63,999,988 |
63,999,988 |
|
Unappropriated |
1,810,581,084 |
1,729,131,342 |
1,474,565,190 |
|
Total Shareholders' Equity |
2,514,578,952 |
2,433,129,210 |
2,178,563,058 |
|
Total Liabilities & Shareholders' Equity |
4,123,066,634 |
4,508,373,798 |
4,839,667,598 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 [Restated] |
|
|
|
|
|
|
Sales and installation income |
5,007,425,366 |
5,786,537,199 |
6,147,720,847 |
|
Service income |
350,246,719 |
363,202,477 |
332,423,521 |
|
Transportation income |
58,392,353 |
66,228,309 |
65,474,981 |
|
Rental income |
7,152,117 |
7,895,373 |
8,111,302 |
|
Total revenues from sales and services |
5,423,216,555 |
6,223,863,358 |
6,553,730,651 |
|
Costs of Sales and Services |
|
|
|
|
Cost of
sales and service |
[4,692,636,538] |
[5,215,801,306] |
[5,548,815,690] |
|
Gross profit |
730,580,017 |
1,008,062,052 |
1,004,914,961 |
|
Gain on exchange rate |
6,569,621 |
15,239,983 |
6,793,959 |
|
Other income |
27,740,704 |
20,145,994 |
29,551,931 |
|
Income before expenses |
764,890,342 |
1,043,448,029 |
1,041,260,851 |
|
Selling expenses |
[241,584,225] |
[255,198,045] |
[253,204,598] |
|
Administrative expenses |
[113,645,991] |
[114,496,147] |
[108,068,289] |
|
Total Expenses |
[355,230,216] |
[369,694,192] |
[361,272,887] |
|
|
|
|
|
|
Income before finance
cost and income tax |
409,660,126 |
673,753,837 |
679,987,964 |
|
Financial cost |
[40,261,736] |
[64,621,614] |
[78,905,578] |
|
Income before income
tax |
369,398,390 |
609,132,223 |
601,082,386 |
|
Income tax |
[39,586,428] |
[124,168,454] |
[140,660,632] |
|
|
|
|
|
|
Net Profit / [Loss] |
329,811,962 |
484,963,769 |
460,421,754 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.76 |
1.55 |
1.34 |
|
QUICK RATIO |
TIMES |
0.87 |
0.80 |
0.72 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.22 |
4.85 |
5.25 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.32 |
1.38 |
1.35 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
103.13 |
102.58 |
103.02 |
|
INVENTORY TURNOVER |
TIMES |
3.54 |
3.56 |
3.54 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
69.89 |
68.32 |
78.25 |
|
RECEIVABLES TURNOVER |
TIMES |
5.22 |
5.34 |
4.66 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
10.67 |
10.57 |
10.92 |
|
CASH CONVERSION CYCLE |
DAYS |
162.35 |
160.33 |
170.35 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
86.53 |
83.80 |
84.67 |
|
SELLING & ADMINISTRATION |
% |
6.55 |
5.94 |
5.51 |
|
INTEREST |
% |
0.74 |
1.04 |
1.20 |
|
GROSS PROFIT MARGIN |
% |
14.10 |
16.77 |
15.89 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
7.55 |
10.83 |
10.38 |
|
NET PROFIT MARGIN |
% |
6.08 |
7.79 |
7.03 |
|
RETURN ON EQUITY |
% |
13.12 |
19.93 |
21.13 |
|
RETURN ON ASSET |
% |
8.00 |
10.76 |
9.51 |
|
EARNING PER SHARE |
BAHT |
5.15 |
7.58 |
7.19 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.39 |
0.46 |
0.55 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.64 |
0.85 |
1.22 |
|
TIME INTEREST EARNED |
TIMES |
10.17 |
10.43 |
8.62 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(12.86) |
(5.03) |
|
|
OPERATING PROFIT |
% |
(39.20) |
(0.92) |
|
|
NET PROFIT |
% |
(31.99) |
5.33 |
|
|
FIXED ASSETS |
% |
0.20 |
2.84 |
|
|
TOTAL ASSETS |
% |
(8.55) |
(6.85) |
|
ANNUAL GROWTH: RISKY
An annual sales growth is -12.86%. Turnover has decreased from THB
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
14.10 |
Impressive |
Industrial
Average |
12.71 |
|
Net Profit Margin |
6.08 |
Impressive |
Industrial
Average |
0.06 |
|
Return on Assets |
8.00 |
Impressive |
Industrial
Average |
1.14 |
|
Return on Equity |
13.12 |
Impressive |
Industrial
Average |
3.20 |
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 14.1%. 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 6.08%, 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 8%, higher figure when compared with
those of its average competitors in the same industry, indicated that business
was an efficient profit in a dominant position within its industry.
Return on Equity indicates how profitable a company is by comparing its
net income to its average shareholders' equity, ROE measures how much the
shareholders earned for their investment in the company. Return on Equity ratio
is 13.12%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profit
in a dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.76 |
Impressive |
Industrial
Average |
1.54 |
|
Quick Ratio |
0.87 |
|
|
|
|
Cash Conversion Cycle |
162.35 |
|
|
|
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 1.76 times in 2014, increased from 1.55 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 0.87 times in 2014,
increased from 0.8 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 163 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.39 |
Impressive |
Industrial
Average |
0.71 |
|
Debt to Equity Ratio |
0.64 |
Impressive |
Industrial
Average |
2.40 |
|
Times Interest Earned |
10.17 |
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 10.18 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 0.39 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.22 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.32 |
Acceptable |
Industrial
Average |
2.30 |
|
Inventory Conversion Period |
103.13 |
|
|
|
|
Inventory Turnover |
3.54 |
Satisfactory |
Industrial
Average |
4.52 |
|
Receivables Conversion Period |
69.89 |
|
|
|
|
Receivables Turnover |
5.22 |
Impressive |
Industrial
Average |
0.10 |
|
Payables Conversion Period |
10.67 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.22 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 is
103 days at the end of 2013,
same number of
days as in
2014. This represents a negative
trend. And Inventory turnover has decreased from 3.56 times in year 2013 to
3.54 times in year 2014.
The company's Total Asset Turnover is calculated as 1.32 times and 1.38
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 Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.62 |
|
|
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.70.77 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
NIT |
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.