MIRA INFORM REPORT
|
Report No. : |
331933 |
|
Report Date : |
18.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
SIAM PACIFIC ELECTRIC WIRE AND CABLE CO., LTD. |
|
|
|
|
Registered Office : |
30th Floor, Charn Issara Tower II, 2922/311-312 New Etchburi Road, Bangkapi, Huaykwang, Bangkok 10310 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
01.07.1988 |
|
|
|
|
Com. Reg. No.: |
0105531049187 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, distributor and
exporter of electric wires and
cables. |
|
|
|
|
No. of Employees : |
400 |
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 but correct |
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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 |
B1 |
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
SIAM PACIFIC ELECTRIC
WIRE AND CABLE
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 30th FLOOR,
CHARN ISSARA TOWER
II,
2922/311-312 NEW
PETCHBURI ROAD,
BANGKAPI, HUAYKWANG,
BANGKOK 10310,
THAILAND
TELEPHONE : [66] 2308-2091
FAX :
[66] 2308-2081-2
E-MAIL ADDRESS : sp@spewc.com
sales@spewc.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1988
REGISTRATION
NO. : 0105531049187 [Former: 4922/2531]
TAX
ID NO. : 3101739565
CAPITAL REGISTERED : BHT. 670,000,000
CAPITAL PAID-UP : BHT.
670,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
CHEN CHEN-NAN, CHINESE
MANAGING DIRECTOR
NO.
OF STAFF : 400
LINES
OF BUSINESS : ELECTRIC WIRES
AND CABLES
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
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 July 1, 1988 as a
private limited company
under the name style SIAM
PACIFIC ELECTRIC WIRE
AND CABLE CO., LTD.
The subject is engaged in
manufacturing of high quality wires
and cable for both local
and foreign markets.
The subject is
also a global
leader in wire
and cable production
technologies. It currently
employs approximately 400 staff.
The subject achieved the
standard ISO 9001 : 2008
certification for Quality Management System [QMS] and ISO
140001 : 2004 Certification for
Environmental Management System
[EMS] in 2007
and 2004 respectively.
The subject’s registered
address is 30th Floor,
Charn Issara Tower
II, 2922/311-312 New
Petchburi Rd., Bangkapi,
Huaykwang, Bangkok 10310,
and this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sun Tao-Tsun |
|
Chinese |
65 |
|
Mr. Chatchai Chutima |
|
Thai |
58 |
|
Mr. Bandhit Tanchavalit |
[x] |
Thai |
50 |
|
Mr. Yuan Chun-Tang |
|
Chinese |
55 |
|
Mr. Sun Tao-Heng |
[x] |
Chinese |
61 |
|
Mr. Lee Michael Chao-Chun |
[x] |
American |
66 |
|
Mr. Cheng Andy Chow-Chun |
|
American |
57 |
|
Mr. Chen Chen-Nan |
[x] |
Chinese |
58 |
|
Mr. Chang Hsiao-Chun |
[x] |
Chinese |
55 |
|
Mr. Chu Ying-Shyang |
|
Chinese |
49 |
|
Mr. Gong Wei |
[x] |
Canadian |
55 |
AUTHORIZED PERSON
Two of the
mentioned directors [x]
can jointly sign
on behalf of the subject
with company’s affixed.
MANAGEMENT
Mr. Chen Chen-Nan
is the Managing Director.
He is Chinese
nationality with the
age of 58
years old.
Mr. Bandhit Tanchavalit is
the Deputy Managing
Director.
He is Thai
nationality with the
age of 50
years old.
Mr. Yuan Chun-Tang
is the Factory
Manager.
He is Chinese
nationality with the
age of 55
years old.
Mr. Chu Ying-Shyang is
the Marketing Manager.
He is Chinese
nationality with the age of
49
years old.
Mr. Kwandee Saichol
is the Sales
Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
of electric wires
and cables, including
enamel wires and
communication cables. Ranges of
products are as
follows:
1. Enameled Wire
Siam Pacific (and Pacific-Thai) manufactures TIS
and UL approved enameled wires with a large
diameter range from
0.018 mm to 4.50 mm.
The application of enameled wire are widespread, serving
as components for electromagnetic
products, including building generators, motors, transformers, relays,
measuring instruments, control equipments, telecommunication equipments and
other electronic equipments. It enameled
round copper wire
and enameled round
aluminum wire products
comply with international
standards including IEC,
JIS, ANSI/NEMA MW
1000, and TIS.
-
Enameled wire products include the following:
|
PVF Enamel (QQ) |
: Polyvinyl format |
|
UEW Enamel (QA) |
: Polyurethane |
|
PEW Enamel (QZ) |
: Polyester |
|
UEW-NY Enamel (QA/X) |
: Two layers, base coat polyurethane, top
coat nylon resin |
|
PEW-NY Enamel (QZ/X) |
: Two layers, base coat polyester, top
coat nylon resin |
|
EIW Enamel (QZY) |
: Polyester-amide-imide or polyester-imide |
|
AIEIW Enamel Q(ZY/XY) |
: Two layers, base coat polyesterimide or
polyester-amide-imide, top coat polyamide-imide |
|
New Enamel |
: Polyamide varnish mainly composed of
nylon 12 |
|
Litz Enamel |
: Litz wire consists of any different
insulation magnet wire |
|
Self-bonding Enamel (QAN, QZN) |
: Self-bonding layer shall be applied to
the base coat
such as UEW, PEW or EIW. |
2.
Communication Cable
Communication cables are
used to transmit
telephone signals, internet
communications, and cable
television signals. Its
cable products have
a wide range
of applications including
public switched telephone
networks, computer information
networks, mobile telecommunications networks, and instrument
control system. Types
of cable are
included indoor and
outdoor type, duct
or direct-buried and
aerial types according
to installation requirements.
Cable types are also
divided into inner-city, outer-city, and long distance
cables according to
transmission distance
requirement.
Range : 0.4mm,
0.5mm, 0.65mm, 0.9mm. From 1 pair to 3,000 pairs
Products : Underground cable (AP-FSF), Aerial
(AP-PIC, AP-FIG8), Terminating
cable
(PVC-PVC), TIEV-CC, TPEV-CC, Drop wire, Jumper wire,
PE-P,
PAP
Main customers: TOT, 7th
Project, CAT, TA, TT&T, and many private projects.
Communication cable products include the following:
·
Polyethylene
insulated alpeth sheathed cable
(AP-PIC)
·
Figure 8
polyethylene insulated alpeth
sheathed cable (AP-FIG8)
·
Foam-skin
insulated alpeth sheathed jelly
filled cable (AP-FSF)
·
Foam-skin
insulated alpeth sheathed jelly
filled cable with core separator (DSAP-FSF)
·
Polyethylene
insulated alpeth sheathed cable
with core separator (DSAP-PIC)
·
Foam-skin
insulated ASP jelly filled cable (ASP-FSF)
·
Polyethylene insulated low loss alpeth sheathed
cable (AP-PIC LOW LOSS)
·
Polyethelene insulated single wire armoured alpeth
sheathed cable (AP-SWA)
·
Polyvinyl
chloride insulated and sheathed terminating cable (TM)
·
Polyvinyl
chloride insulated jumper wire (JW)
·
Polyethylene
insulated and polyvinyl
chloride sheathed inside-outside
station wire (TIEV-CC)
·
Polyethylene
insulated and polyvinyl chloride sheathed terminating cable (TPEV/TPEV-CC)
·
Polyvinyl
chloride insulated and self-support telephone
drop wire (DW)
BRAND NAME
“SP”
PRODUCTION CAPACITY
Communication Cable : 119,147
pairs-km/year
Enamelled Wire : 7,045 metric
tons/year
IMPORT
Raw materials such
as copper, plastic
resin and accessories
are imported from
Taiwan, Republic of
China, Japan and
United States of
America, as well as
are purchased from
local suppliers.
MAJOR
SUPPLIERS
Asia Pacific Wire & Cable Corp
Ltd. : Taiwan
Pacific Electric Wire
and Cable Co.,
Ltd. : Thailand
SALES [LOCAL]
80% of its
products is sold
locally by wholesales
to dealers and
end-users both Government,
state enterprises and
private sectors as
the followings:
- TOT Public
Company Limited
- Advance Info
Service Public Company
Limited
- Total Access
Communication Public Company
Limited
-
True
Corporation Public Company
Limited
-
Intouch
Holdings Public Company
Limited
-
CAT
Telecom Public Company
Limited
-
SVOA
Public Company Limited
EXPORT [COUNTRY]
20% of its
products is exported
to Republic of
China, Hong Kong, India,
Brunei, Philippines, Korea, Singapore, Malaysia, Taiwan,
Indonesia, Laos, Vietnam,
Myanmar and Middle
East countries.
MAJOR CUSTOMER
Shanghai Yayang Electric
Co., Ltd. : Republic of
China
RELATED AND
AFFILIATED COMPANY
Pacific-Thai Electric Wire
& Cable Co., Ltd.
Business Type : Manufacturer of
wires & cable
Address : 2922/12 New
Petchburi Rd., Bangkapi,
Huaykwang, Bangkok
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 to 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
T/T.
Exports are against
L/C at sight
and T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[New Petchburi Branch : 1975/1 New Petchburi
Rd., Huaykwang, Bangkok]
EMPLOYMENT
The subject employs
approximately 400 staff. [office
staff and factory
workers].
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in commercial area.
Factory is situated on
100,000 square meters plot of
land at 8-9
Moo 5, Tivanont
Rd.,
T. Banmai, A. Muang,
Pathumthani 12000.
Tel: [66] 2501-2240,
Fax: [66] 2963-7868, 2019-6168.
COMMENT
The subject is
a global leader
in wire and
cable production technologies.
With more than
25 years of
experience and expertise
in the field,
it has established
itself as a
major player in
this highly competitive
and volatile market. Its
market share in
Thailand is approximately 33% for
enameled wire products
and 25% for
communication and power
cable products.
The subject’s business
remains solid.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 1,000,000 divided
into 10,000 shares
of Bht. 100 each.
The capital was
increased later as
follows:
Bht. 170,000,000
on January 9,
1990
Bht. 370,000,000
on November 30,
1992
Bht. 670,000,000
on December 9,
1996
The latest registered
capital was increased
to Bht. 670,000,000
divided into 6,700,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE
[as at March
24, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Charoong Thai Wire & Cable Public Company Limited Nationality: Thai Address : 598/71 Bangna-Trad Road,
Bangna, Bangkok |
6,699,994 |
100.00 |
|
Mr. Kung Chin-Yung Nationality: Chinese Address : 25/43
Soi Ekamai, Sukhumvit 63 Road,
Wattana, Bangkok 10110 |
1 |
- |
|
Mr. Han Chung
Yuan Nationality: Chinese Address : 9
Farrer Rd., #03-06 Singapore 268821 |
1 |
- |
|
Mr. Chatchai Chutima Nationality: Thai Address : 77 Samsennai, Phyathai,
Bangkok 10400 |
1 |
- |
|
Mr. Ataporn Bubphachuen Nationality: Thai Address : 191
Moo 5, T. Banmai,
A. Muang, Pathumthani |
1 |
- |
|
Mr. Lu Wie-Ming Nationality: Chinese Address : 289/1504
Pattanakarn 30 Road,
Suanluang Praves, Bangkok 10250 |
1 |
- |
|
Mr. Bandhit Tanchavalit Nationality: Thai Address : 199/201
Moo 3, Tharaeng,
Bangkhen, Bangkok |
1 |
- |
Total Shareholders : 7
Share Structure
[as at March 24,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
6,699,997 |
100.00 |
|
Foreign - Chinese |
3 |
3 |
- |
|
Total |
7 |
6,700,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Ms. Krongkaew Limkittikul No.
5874
BALANCE
SHEET [BAHT]
The latest financial figures published
as at December
31, 2014, 2013
& 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 [Adjusted] |
|
|
|
|
|
|
Cash and Cash Equivalents |
913,309,458 |
626,752,306 |
765,388,120 |
|
Trade Accounts and
Other Receivable |
634,352,966 |
491,346,438 |
663,583,287 |
|
Inventories |
536,551,556 |
380,646,300 |
496,277,334 |
|
Refundable Tax |
9,234,136 |
4,205,845 |
51,563,839 |
|
Loan to Other |
10,000,000 |
10,000,000 |
10,000,000 |
|
Other Current Assets
|
5,236,593 |
5,325,380 |
2,385,627 |
|
|
|
|
|
|
Total Current Assets
|
2,108,684,709 |
1,518,276,269 |
1,989,198,207 |
|
Cash at Bank pledged as a Collateral |
239,200,000 |
261,700,000 |
261,700,000 |
|
Investment in Subsidiaries |
133,140,571 |
183,340,571 |
183,340,571 |
|
Long-term Investment |
75,270,000 |
75,270,000 |
11,000,000 |
|
Investment Property |
6,127,551 |
6,695,694 |
7,263,838 |
|
Fixed Assets |
504,913,583 |
529,182,198 |
515,970,441 |
|
Other Non-current Assets |
457,876 |
522,092 |
1,048,924 |
|
Total Assets |
3,067,794,290 |
2,574,986,824 |
2,969,521,981 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 [Adjusted] |
|
|
|
|
|
|
Trust Receipt Payable |
1,044,245,363 |
587,353,756 |
793,685,182 |
|
Trade Accounts and
Other Payable |
180,292,739 |
72,608,217 |
127,470,286 |
|
Short-term Loan from Related Company |
- |
6,415,860 |
5,992,951 |
|
Accrued Income Tax |
413,067 |
- |
5,494,726 |
|
Other Current Liabilities |
2,574,512 |
6,339,051 |
5,915,922 |
|
|
|
|
|
|
Total Current Liabilities |
1,227,525,681 |
672,716,884 |
938,559,067 |
|
Deferred Income Tax Liabilities |
34,180,592 |
40,345,296 |
34,449,151 |
|
Provision for Employee Benefits
|
26,471,981 |
16,680,945 |
10,478,056 |
|
Total Liabilities |
1,288,178,254 |
729,743,125 |
983,486,274 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 6,700,000 shares |
670,000,000 |
670,000,000 |
670,000,000 |
|
|
|
|
|
|
Capital Paid |
670,000,000 |
670,000,000 |
670,000,000 |
|
Retained Earnings: Appropriated for statutory reserve |
37,090,873 |
36,466,715 |
27,968,294 |
|
Unappropriated |
839,205,956 |
905,457,777 |
1,054,748,206 |
|
Other Components of Shareholders’ Equity |
233,319,207 |
233,319,207 |
233,319,207 |
|
Total Shareholders' Equity |
1,779,616,036 |
1,845,243,699 |
1,986,035,707 |
|
Total Liabilities & Shareholders' Equity |
3,067,794,290 |
2,574,986,824 |
2,969,521,981 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 [Adjusted] |
|
|
|
|
|
|
Sales Income |
2,308,042,121 |
2,211,719,172 |
2,384,325,954 |
|
Other Income |
|
|
|
|
Interest Income |
16,107,594 |
19,760,506 |
18,598,622 |
|
Gain on Exchange Rate |
2,251,979 |
- |
39,268,980 |
|
Compensation from
Flood Damage |
- |
- |
149,087,283 |
|
Others |
4,557,941 |
9,583,516 |
10,170,026 |
|
Total Revenues |
2,330,959,635 |
2,241,063,194 |
2,601,450,865 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,246,105,109 |
2,102,314,141 |
2,212,696,256 |
|
Selling Expenses |
20,080,729 |
19,991,937 |
22,031,890 |
|
Administrative Expenses |
46,347,580 |
98,598,209 |
110,472,067 |
|
Other Expenses Reversal of
Allowance for Doubtful Accounts |
1,916,211 |
[25,879,413] |
[14,317,000] |
|
Loss on
Impairment of Investments |
50,200,000 |
- |
- |
|
Total Expenses |
2,364,649,629 |
2,195,024,874 |
2,330,883,213 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income Tax |
[33,689,994] |
46,038,320 |
270,567,652 |
|
Financial Cost |
[15,534,395] |
[19,254,571] |
[21,484,159] |
|
Profit / [Loss] before Income
Tax |
[49,224,389] |
26,783,749 |
249,083,493 |
|
Income Tax |
[1,400,533] |
[5,938,067] |
[53,854,293] |
|
|
|
|
|
|
Net Profit / [Loss] |
[50,624,922] |
20,845,682 |
195,229,200 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.72 |
2.26 |
2.12 |
|
QUICK RATIO |
TIMES |
1.26 |
1.66 |
1.52 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.57 |
4.18 |
4.62 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.75 |
0.86 |
0.80 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
87.19 |
66.09 |
81.86 |
|
INVENTORY TURNOVER |
TIMES |
4.19 |
5.52 |
4.46 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
100.32 |
81.09 |
101.58 |
|
RECEIVABLES TURNOVER |
TIMES |
3.64 |
4.50 |
3.59 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
29.30 |
12.61 |
21.03 |
|
CASH CONVERSION CYCLE |
DAYS |
158.21 |
134.57 |
162.42 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
97.32 |
95.05 |
92.80 |
|
SELLING & ADMINISTRATION |
% |
2.88 |
5.36 |
5.56 |
|
INTEREST |
% |
0.67 |
0.87 |
0.90 |
|
GROSS PROFIT MARGIN |
% |
3.68 |
6.27 |
16.30 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(1.46) |
2.08 |
11.35 |
|
NET PROFIT MARGIN |
% |
(2.19) |
0.94 |
8.19 |
|
RETURN ON EQUITY |
% |
(2.84) |
1.13 |
9.83 |
|
RETURN ON ASSET |
% |
(1.65) |
0.81 |
6.57 |
|
EARNING PER SHARE |
BAHT |
(7.56) |
3.11 |
29.14 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.42 |
0.28 |
0.33 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.72 |
0.40 |
0.50 |
|
TIME INTEREST EARNED |
TIMES |
(2.17) |
2.39 |
12.59 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
4.36 |
(7.24) |
|
|
OPERATING PROFIT |
% |
(173.18) |
(82.98) |
|
|
NET PROFIT |
% |
(342.86) |
(89.32) |
|
|
FIXED ASSETS |
% |
(4.59) |
2.56 |
|
|
TOTAL ASSETS |
% |
19.14 |
(13.29) |
|
ANNUAL GROWTH : ACCEPTABLE
An annual sales growth is 4.36%. Turnover has increased from THB
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
3.68 |
Impressive |
Industrial
Average |
0.32 |
|
Net Profit Margin |
(2.19) |
Deteriorated |
Industrial
Average |
2.07 |
|
Return on Assets |
(1.65) |
Deteriorated |
Industrial
Average |
3.16 |
|
Return on Equity |
(2.84) |
Deteriorated |
Industrial
Average |
6.52 |
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 3.68%. 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 -2.19%.
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 -1.65%.
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 -2.84%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.72 |
Impressive |
Industrial Average |
1.65 |
|
Quick Ratio |
1.26 |
|
|
|
|
Cash Conversion Cycle |
158.21 |
|
|
|
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 1.72 times in 2014, decreased from 2.26 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 1.26 times in 2014,
decreased from 1.66 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 159 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
SATISFACTORY
LEVERAGE RATIO
|
Debt Ratio |
0.42 |
Impressive |
Industrial
Average |
0.44 |
|
Debt to Equity Ratio |
0.72 |
Impressive |
Industrial
Average |
0.80 |
|
Times Interest Earned |
(2.17) |
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 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 -2.17 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 0.42 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 Downtrend
Times Interest Earned Stable
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.57 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.75 |
Deteriorated |
Industrial
Average |
1.53 |
|
Inventory Conversion Period |
87.19 |
|
|
|
|
Inventory Turnover |
4.19 |
Acceptable |
Industrial
Average |
6.17 |
|
Receivables Conversion Period |
100.32 |
|
|
|
|
Receivables Turnover |
3.64 |
Satisfactory |
Industrial
Average |
4.10 |
|
Payables Conversion Period |
29.30 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.64 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 increased from 66 days at the
end of 2013 to 87 days at the end of 2014. This represents a negative trend.
And Inventory turnover has decreased from 5.52 times in year 2013 to 4.19 times
in year 2014.
The company's Total Asset Turnover is calculated as 0.75 times and 0.86
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 Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.49 |
|
UK Pound |
1 |
Rs.99.43 |
|
Euro |
1 |
Rs.69.14 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
VNT |
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.