MIRA INFORM REPORT
|
Report No. : |
331451 |
|
Report Date : |
17.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
N.T.S. STEEL GROUP PUBLIC COMPANY LIMITED |
|
|
|
|
Formerly Known As : |
N.T.S. STEEL GROUP CO., LTD.”. |
|
|
|
|
Registered Office : |
20th Floor, Rasa Tower, 555 Phaholyothin Road, Chatuchak, Bangkok 10900 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
04.10.1988 |
|
|
|
|
Com. Reg. No.: |
0107536001273 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer and Distributor of Round and Deformed Bars and Wire Rod. |
|
|
|
|
No. of Employees : |
500 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
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 – 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
N.T.S. STEEL GROUP PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 20th FLOOR,
RASA TOWER,
555 PHAHOLYOTHIN
ROAD, CHATUCHAK,
BANGKOK 10900,
THAILAND
TELEPHONE : [66]
2937-1000
FAX :
[66] 2937-1223-4
E-MAIL ADDRESS : marketing@nts.co.th
REGISTRATION ADDRESS : SAME AS
BUSINESS ADDRESS
ESTABLISHED : 1988
REGISTRATION NO. : 0107536001273 [ Former : BOR.MOR.JOR.201]
TAX ID NO. : 3101561128
CAPITAL REGISTERED : BHT. 4,627,965,356.40
CAPITAL PAID - UP : BHT. 4,627,965,356.40
SHAREHOLDER’S PROPORTION : THAI
: 0.23%
FOREIGN :
99.77%
FISCAL YEAR CLOSING
DATE : MARCH 31
LEGAL STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. RAJIV
MANGAL, INDIAN
PRESIDENT
AND CHIEF EXECUTIVE
OFFICER
NO. OF STAFF : 500
LINES OF BUSINESS : ROUND AND DEFORMED BARS AND WIRE ROD MANUFACTURER AND
DISTRIBUTOR
CORPORATE
PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : FAIR FOR NORMAL
BUSINESS ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was
established on October
4, 1988 as
a private limited
company under the
initial registered name “N.T.S.
Steel Group Co., Ltd.”.
On July 13, 1990 the subject was granted promotion
privilege from the Board of
Investment for 7 years
after starting production
of steel products.
The subject was
listed on the
Stock Exchange of
Thailand on December
4, 1992 and
finally converted its
status into a
public limited company
under the name
N.T.S. STEEL GROUP
PUBLIC COMPANY LIMITED
on October 22,
1993. However, its name
was withdrawn from
the Stock Exchange
of Thailand in
2002.
In October 1993,
the subject was
seriously affected by
the economic crisis
within the nation
in the year
1997 and subsequently
underwent the debt restructuring under
the Corporate Debt
Restructuring Advisory Committee
and the business
reorganization under the
Central Bankruptcy Court
on October 2,
2000. Later, with
respect to the
approval of the
creditors of NTS
and the order
of Central Bankruptcy
Court dated July
19, 2002, the
steel business merger
between NTS and
the other 2
companies of Siam
Cement group, namely
“The Siam Iron
and Steel [2001]
Ltd.” and “The Siam
Construction Steel Co.,
Ltd.” was initiated,
and set up
the new company
under the name “Millennium Steel
Public Co., Ltd.”,
in order to
invest in the
3 companies.
In December 2006,
“Millennium Steel Public
Co., Ltd.” was
changed the name
to “Tata Steel
[Thailand] Public Co.,
Ltd.”. Presently, the
subject is a
subsidiary of Tata
Steel [Thailand] Public
Company Limited, with
holding around 79%
of total shares,
and are also
a member of
Tata Steel Limited in
India.
It achieved the
9001:2000 certificate for
the products quality
management in 2004.
After the subject
was stopped its
production activity temporarily
in 2000, its
activities were re-started in
January 2003. Subject currently
employs approximately 500
staff.
The subject’s registered
address was initially at
22nd Flr., Shinawatra
3 Bldg.,
1010 Vibhavadee Rangsit Rd.,
Jatujak, Bangkok 10900.
In January 2015, the subject’s
registered address was
relocated to 20th Floor,
Rasa Tower, 555 Phaholyothin Road, Chatuchak, Bangkok
10900, and this is the company’s current
operation address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Rajiv Mangal |
[x] |
Indian |
48 |
|
Mr. Thana Ruangsilasingha |
[x] |
Thai |
60 |
|
Mr. Sirorote Matemanosak |
|
Thai |
53 |
|
Mr. Wanlert Kanwiwat |
|
Thai |
50 |
|
Mr. Arun Kumar
Chaudhary |
|
Indian |
56 |
AUTHORIZED
PERSON
Both mentioned directors
[x] can jointly
sign or one
of the mentioned
directors [x] can
jointly sign with anyone of
the rest directors
on behalf of the
subject with the
company’s affixed.
MANAGEMENT
Mr. Rajiv Mangal
is the President
and Chief Executive
Officer.
He is Indian
nationality with the
age of 48
years old.
Mr. Thana Ruangsilasingha is the Chief
Operation Officer.
He is Thai
nationality with the
age of 60
years old.
Mr. Arun Kumar Chaudhary is the
Vice President [Production].
He is Indian
nationality with the
age of 56
years old.
Mr. Sirirote Matemanosak
is the Vice
President [Human Resources &
Corporate Affairs].
He is Thai
nationality with the
age of 53
years old.
BUSINESS
OPERATIONS
The subject’s activity
is a manufacturer
various kinds of
steel products, including
round and deformed bar,
low & high carbon steel wire
rod, under its
own brand “NTS”.
PRODUCTION CAPACITY
Round and Deformed Bar : 445,000 tons
per annum
Low/High Carbon Steel Wire
Rod : 400,000 tons per
annum
PURCHASE [LOCAL]
100% of raw
material is purchased
locally by Tata
Steel [Thailand] Public Co., Ltd., the
parent company.
SALES [LOCAL]
100% of its
products is sold
locally to Tata
Steel [Thailand] Public
Co., Ltd.
PARENT
COMPANY
Tata Steel [Thailand]
Public Co., Ltd.
Business Type :
Holding company
Address : 1010
Vibhavadee Rangsit Rd.,
Jatujak, Bangkok 10900.
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
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Sales are by
cash or on
the credits term
of 30-60 days.
BANKING
Kasikornbank Public Co., Ltd.
[Head Office
: 1 Kasikorn Lane, Rajburana
Rd., Rajburana, Bangkok]
Krung Thai Bank
Public Co., Ltd.
[Head Office
: 35 Sukhumvit
Rd., Klongtoeynua, Wattana,
Bangkok]
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok]
EMPLOYMENT
The subject employs
approximately 500 office
staff and factory
workers.
LOCATION
DETAILS
The premise is
rented for administrative office
at the heading
address in commercial/ residential area.
Factory and warehouse are
located on 800,000
square meters of
land, at 351
Moo 6, Hemaraj Chonburi
Industrial Estate, 331
Highway Rd., T. Bowin,
A. Sriracha, Chonburi
20230. Tel : [66] 38 345-355-9,
Fax : [66] 38 345-350
COMMENT
The company is a
subsidiary of Tata
Steel [Thailand] Public Co.,
Ltd. who is
the biggest steel
maker in Thailand at Bo Win, Chonburi province. The
principle activity is the manufacturing and
distributing of round and deformed bars
and wire rod
for use in
steel, reinforced concrete
for construction industry.
In
2014 the country
saw prolonged political
uncertainty that had a significant
impact on the business
sentiment. This coupled
with cheap import of
wire rods in
abundance from China posed
serious challenges for
the company. However,
the company still
maintains the leadership
position in product
segments like deformed
bars and wire rods.
FINANCIAL
INFORMATION
The capital was
registered at Bht. 10
million, divided into
100,000 shares of Bht.
100 each.
The capital was
increased later as
followings:
Bht.
1,000 million on
April 23, 1990
Bht.
1,850 million on February 20, 1992
Bht.
2,115 million on
October 9 , 1992
Bht.
3,000 million in
October, 1993
The latest registered
capital is at
Bht. 4,627,965,356.40
divided into 3,856,637,797
shares of Bht. 1.20
each with fully
paid.
MAIN SHAREHOLDERS : [as
at July 25,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Tata Steel
[Thailand] Public Co.,
Ltd. Nationality: Foreign Address :
555 Rasa Tower
2, Phaholyothin Rd.,
Jatujak, Bangkok |
3,059,164,289 |
79.32 |
|
Mr. Sawat Horrungruang Nationality: Thai Address :
9 Ramkhamhaeng Rd.,
Suanluang, Bangkok |
1,667,000 |
0.04 |
|
Ms.
Siriporn Horrungruang Nationality: Thai Address :
351/1 Silom Rd.,
Silom, Bangrak, Bangkok |
1,000,000 |
0.03 |
|
Ms.
Ornanong Suriyapanumas Nationality: Thai Address :
37/4 Arun Amarin
Rd., Bangkoknoi, Bangkok |
1,000,000 |
0.03 |
|
Mr.
Sunthorn Chailaemlak Nationality: Thai Address :
245/66 Klongbangkokyai Rd.,
Pasicharoen, Bangkok |
1,000,000 |
0.03 |
|
Mr. Sawai Horrungruang Nationality: Thai Address :
114/3 Moo 1,
Laemfapha, Muang, Samutprakarn |
1,000,000 |
0.03 |
|
Kiatnakin Bank
Public Company Limited Nationality: Thai Address :
500 Ploenchit Road,
Lumpini, Pathumwan, Bangkok |
919,800 |
0.02 |
|
Others |
790,886,708 |
20.50 |
Total shareholders : 837
Share Structure
[as at
July 25, 2014]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
803 |
8,888,108 |
0.23 |
|
Foreign |
34 |
3,847,749,689 |
99.77 |
|
Total |
837 |
3,856,637,797 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Thanawan Anuratbodee No. 3440
Note
The financial
statement as of
March 31, 2015
has not yet
available during investigation.
BALANCE
SHEET [BAHT]
The latest financial
figures published for March 31,
2014, 2013 &
2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
158,473,997 |
84,719,092 |
90,254,213 |
|
Trade Account
& Other Receivable -
Related company |
168,175,738 |
212,889,602 |
183,050,260 |
|
-
Other company |
637,674,393 |
795,063,546 |
750,390,679 |
|
Other Receivable -
Related Company |
1,730,439 |
7,105,661 |
6,140,461 |
|
-
Other company |
12,952,807 |
5,738,251 |
10,073,751 |
|
Short-term Lending
to Parent Company |
- |
948,573,847 |
- |
|
Inventories |
1,892,191,221 |
2,540,533,611 |
3,330,509,055 |
|
Deferred Value
Added Tax |
- |
31,844,589 |
36,131,739 |
|
Other Current
Assets |
12,345,938 |
12,022,932 |
18,572,885 |
|
|
|
|
|
|
Total Current
Assets |
2,883,544,533 |
4,638,491,131 |
4,425,123,043 |
|
Investment available
for Sale |
600,000 |
1,300,000 |
1,600,000 |
|
Fixed Assets |
4,636,541,480 |
4,960,360,701 |
8,422,362,978 |
|
Computer Programme |
209,182 |
275,058 |
340,935 |
|
Deferred Income Tax |
206,152,737 |
206,152,737 |
492,396,281 |
|
Other Non-current
Assets |
22,358,185 |
23,895,838 |
41,836,389 |
|
Total Assets |
7,749,406,117 |
9,830,475,465 |
13,383,659,626 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft
& Short-term Loan from Financial Institution |
1,541,301,871 |
1,763,161,959 |
830,667,166 |
|
Short-term Loan
from Parent Company |
223,014,015 |
- |
- |
|
Trade Account
Payable - Related
company |
1,088,702,114 |
1,265,408,780 |
1,409,332,464 |
|
- Other
company |
324,129,669 |
447,507,637 |
437,071,321 |
|
- Other Payable- Related Company |
7,577,016 |
15,902,323 |
12,398,998 |
|
- Other Payable - Other company |
449,556 |
9,743,871 |
- |
|
Advance Income
from Customers |
29,312,520 |
30,281,496 |
74,915,788 |
|
Accrued Expenses |
158,258,383 |
237,739,334 |
117,222,550 |
|
Current Portion
of Long-term Liabilities Trade
Accounts Payable from
Debt Restructuring |
6,326,827 |
57,712,398 |
186,903,192 |
|
Long-term Loan from Parent
Company |
1,610,000,000 |
1,650,000,000 |
780,000,000 |
|
Short-term
Loan from Parent
Company |
- |
- |
3,301,939,657 |
|
Other Current
Liabilities |
23,915,020 |
5,243,570 |
129,681,380 |
|
|
|
|
|
|
Total Current
Liabilities |
5,012,986,991 |
5,482,701,368 |
7,280,132,516 |
|
Long-term
Loan from Parent
Company |
1,065,000,000 |
2,675,000,000 |
5,620,000,000 |
|
Estimation Liabilities
for Benefit Employees |
33,768,805 |
37,139,737 |
32,085,974 |
|
Total Liabilities
|
6,111,755,796 |
8,194,841,105 |
12,932,218,490 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
Share
capital : Baht 1.20 par
value Authorized
& issued share capital
3,856,637,797 shares |
4,627,965,356 |
4,628,010,864 |
4,628,010,864 |
|
|
|
|
|
|
Capital Paid |
4,627,965,356 |
4,627,965,356 |
3,253,398,864 |
|
Surplus on
Share Capital Ordinary
Shares |
3,773,395,295 |
3,773,395,295 |
- |
|
Expired
Warrant |
1,896 |
1,896 |
- |
|
Warrant |
- |
- |
57,275,500 |
|
Retained Earnings
Appropriated for statutory reserve |
42,699,155 |
42,699,155 |
42,699,155 |
|
Unappropriated |
[6,807,011,381] |
[6,809,727,342] |
[2,903,532,383] |
|
|
|
|
|
|
Total
Shareholders' Equity |
1,637,050,321 |
1,634,334,360 |
449,841,136 |
|
Unrealized Profit
from Measurement in Value
of Investment Available for Sale |
600,000 |
1,300,000 |
1,600,000 |
|
Total Liabilities & Shareholders' Equity |
7,749,406,117 |
9,830,475,465 |
13,383,659,626 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales |
32,119,015,857 |
32,068,126,073 |
30,135,629,099 |
|
Gain on Exchange Rate |
- |
22,938,714 |
29,453,305 |
|
Gain on
Debt Restructuring |
2,887,609 |
65,785,886 |
- |
|
Other Income |
19,867,826 |
33,654,871 |
60,870,534 |
|
Total Revenues |
32,141,771,292 |
32,190,505,544 |
30,225,952,938 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of
Goods Sold |
31,531,562,263 |
32,204,918,064 |
30,752,544,302 |
|
Selling Expenses |
205,084,151 |
192,179,452 |
192,956,885 |
|
Administrative Expenses |
134,917,808 |
126,769,201 |
136,689,485 |
|
Loss on
Exchange Rate |
4,311,869 |
- |
- |
|
Loss on Diminution of
Building & Equipment |
- |
2,897,702,428 |
- |
|
Cost of Financial |
269,136,540 |
388,887,814 |
395,445,416 |
|
Total Expenses
|
32,145,012,631 |
35,810,456,959 |
31,477,636,088 |
|
|
|
|
|
|
Loss before Income Tax |
[3,241,339] |
[3,619,951,415] |
[1,251,683,150] |
|
Income Tax [benefit] |
- |
[286,243,544] |
[209,370,097] |
|
|
|
|
|
|
Net Profit
[Loss] for the
Year |
[3,241,339] |
[3,906,194,959] |
[1,461,053,247] |
|
Other Miscellaneous Loss Unrealized
Loss from Measurement
of Investment Available
for Sale |
[700,000] |
[300,000] |
[900,000] |
|
Gain on
Provision for Employee Benefits |
5,957,300 |
- |
- |
|
Net Profit / [Loss] |
2,015,961 |
[3,906,494,959] |
[1,461,953,247] |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.58 |
0.85 |
0.61 |
|
QUICK RATIO |
TIMES |
0.20 |
0.37 |
0.14 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS
TURNOVER |
TIMES |
6.93 |
4.08 |
3.58 |
|
TOTAL ASSETS
TURNOVER |
TIMES |
4.14 |
3.26 |
2.25 |
|
INVENTORY
CONVERSION PERIOD |
DAYS |
21.90 |
28.79 |
39.53 |
|
INVENTORY
TURNOVER |
TIMES |
16.66 |
12.68 |
9.23 |
|
RECEIVABLES
CONVERSION PERIOD |
DAYS |
7.25 |
9.05 |
9.09 |
|
RECEIVABLES
TURNOVER |
TIMES |
50.37 |
40.33 |
40.16 |
|
PAYABLES
CONVERSION PERIOD |
DAYS |
3.76 |
5.18 |
5.19 |
|
CASH CONVERSION
CYCLE |
DAYS |
25.39 |
32.66 |
43.43 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS
SOLD |
% |
98.17 |
100.43 |
102.05 |
|
SELLING &
ADMINISTRATION |
% |
1.06 |
0.99 |
1.09 |
|
INTEREST |
% |
0.84 |
1.21 |
1.31 |
|
GROSS PROFIT
MARGIN |
% |
1.90 |
(0.04) |
(1.75) |
|
NET PROFIT MARGIN
BEFORE EX. ITEM |
% |
(0.01) |
(11.29) |
(4.15) |
|
NET PROFIT MARGIN |
% |
0.01 |
(12.18) |
(4.85) |
|
RETURN ON EQUITY |
% |
0.12 |
(238.84) |
(323.84) |
|
RETURN ON ASSET |
% |
0.03 |
(39.74) |
(10.92) |
|
EARNING PER SHARE |
BAHT |
0.00 |
(1.01) |
(0.54) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.79 |
0.83 |
0.97 |
|
DEBT TO EQUITY
RATIO |
TIMES |
3.73 |
5.01 |
28.65 |
|
TIME INTEREST
EARNED |
TIMES |
(0.01) |
(9.31) |
(3.17) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
0.16 |
6.41 |
|
|
OPERATING PROFIT |
% |
(99.91) |
189.21 |
|
|
NET PROFIT |
% |
100.05 |
(167.21) |
|
|
FIXED ASSETS |
% |
(41.00) |
(6.70) |
|
|
TOTAL ASSETS |
% |
(21.17) |
(26.55) |
|
ANNUAL
GROWTH: ACCEPTABLE
An annual sales
growth is 0.16%. Turnover has increased from THB 32,068,126,073.00 in 2013 to
THB 32,119,015,857.00 in 2014. While net profit has increased from THB
PROFITABILITY : RISKY
PROFITABILITY RATIO
|
Gross Profit
Margin |
1.90 |
Deteriorated |
Industrial Average |
11.42 |
|
Net Profit Margin |
0.01 |
Deteriorated |
Industrial Average |
1.52 |
|
Return on Assets |
0.03 |
Deteriorated |
Industrial Average |
4.61 |
|
Return on Equity |
0.12 |
Deteriorated |
Industrial Average |
10.69 |
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 1.9%. 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 0.01%. 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. When compared with the industry average, it was lower, the company's figure is 0.03%.
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 0.12%.
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 |
0.58 |
Risky |
Industrial Average |
1.17 |
|
Quick Ratio |
0.20 |
|
|
|
|
Cash Conversion
Cycle |
25.39 |
|
|
|
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 0.58 times in 2014,
decreased from 0.85 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 0.2 times in 2014, decreased from 0.37
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 26 days.
Trend of the average competitors in the same
industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.79 |
Acceptable |
Industrial Average |
0.55 |
|
Debt to Equity
Ratio |
3.73 |
Risky |
Industrial Average |
1.20 |
|
Times Interest
Earned |
(0.01) |
Risky |
Industrial Average |
- |
Debt to Equity
Ratio a measurement of how much suppliers, lenders, creditors and obligors have
committed to the company versus what the shareholders have committed. A 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
-0.02 lower than 1, so the company is not generating enough cash from EBIT to
meet its interest obligations.
Debt Ratio shows
the proportion of a company's assets which are financed through debt. The
company's figure is 0.79 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 |
6.93 |
Impressive |
Industrial Average |
- |
|
Total Assets
Turnover |
4.14 |
Impressive |
Industrial Average |
3.03 |
|
Inventory Conversion
Period |
21.90 |
|
|
|
|
Inventory
Turnover |
16.66 |
Impressive |
Industrial Average |
9.16 |
|
Receivables
Conversion Period |
7.25 |
|
|
|
|
Receivables
Turnover |
50.37 |
Impressive |
Industrial Average |
12.96 |
|
Payables Conversion
Period |
3.76 |
|
|
|
The company's
Account Receivable Ratio is calculated as 50.37 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 29 days at the end of 2013 to 22 days at the end of 2014. This
represents a positive trend. And Inventory turnover has increased from 12.68
times in year 2013 to 16.66 times in year 2014.
The company's Total
Asset Turnover is calculated as 4.14 times and 3.26 times in 2014 and 2013
respectively. This ratio is determined by dividing total assets into total
sales turnover. The ratio measures the activity of the assets and the ability
of the firm to generate sales through the use of the assets.
Trend of the average competitors in the same
industry for last 5 years
Fixed Assets
Turnover Stable
Total Assets
Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.50 |
|
|
1 |
Rs.99.17 |
|
Euro |
1 |
Rs.69.39 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.