MIRA INFORM REPORT
|
Report No. : |
332221 |
|
Report Date : |
20.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
KCG CORPORATION CO., LTD. |
|
|
|
|
Formerly Known As : |
IMPERIAL GENERAL FOODS INDUSTRY CO., LTD. |
|
|
|
|
Registered Office : |
3059, 3059/1-3 Sukhumvit Road, Bangchak, Prakanong, Bangkok 10260 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
24.05.1985 |
|
|
|
|
Com. Reg. No.: |
0105528018144 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer,
Importer and Distributor of Food Products. |
|
|
|
|
No. of Employees : |
1,300 |
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
KCG CORPORATION CO., LTD.
[FORMER: IMPERIAL GENERAL FOODS INDUSTRY CO., LTD.]
SUMMARY
BUSINESS
ADDRESS : 3059,
3059/1-3 SUKHUMVIT ROAD,
BANGCHAK, PRAKANONG,
BANGKOK 10260,
THAILAND
TELEPHONE : [66] 2332-8040-9,
2331-6968-70, 2331-6910
FAX : [66] 2331-6891,
2331-6911
E-MAIL
ADDRESS : info@kcgcorporation.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1985
REGISTRATION
NO. : 0105528018144
TAX
ID NO. : 3101347197
CAPITAL REGISTERED : BHT.
330,000,000
CAPITAL PAID-UP : BHT.
330,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE
LIMITED COMPANY
EXECUTIVE : MR. TONG DHIRANUSORNKIT, THAI
PRESIDENT AND
CHIEF EXECUTIVE OFFICER
NO.
OF STAFF : 1,300
LINES
OF BUSINESS : FOOD PRODUCTS
MANUFACTURER, IMPORTER 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 May 24,
1985 as a
private limited company
under the originally
registered name “Imperial
General Foods Industry
Co., Ltd.”, by
Thai groups. It
is a member of
Kim Chua Group of
Companies. On October 14,
2013, its registered name was
changed to KCG CORPORATION CO., LTD. Its
business objective is
to manufacture, import
and distribute wide
range of foods
products to domestic
market. It currently
employs approximately 1,300 staff.
In January 2014, The
Kim Chua Group Co.,
Ltd., has restructured
its internal businesses
for business competency and
efficiency by changing the company name
to “KCG Corporation Co., Ltd.” Therefore,
the companies within Kim Chua
Group have changed
the company name
accordingly as follows:
- “Imperial General
Foods Industry Co., Ltd.”
was changed to
“KCG Corporation Co.,
Ltd.” (Bangplee Branch).
- “United
Dairy Foods Co.,
Ltd.” was changed
to
“KCG Corporation Co., Ltd.” (Bangna
Branch) and (Theparak
Branch).
- “United
Dairy Farm Co., Ltd.”
was changed to
“KCG Corporation Co.,
Ltd.” (Dairy
Business Department).
- “Imperial Bakery Equipment Co.,
Ltd.” was changed
to
“KCG Corporation
Co., Ltd.” (Bakery
Equipment Department).
- “Imperial Bakery and Food Culinary School” was
changed to
“KCG
Corporation Co., Ltd.” (Sukhumvit 64
Branch).
- “Chiangmai Distribution Center” was
changed to
“KCG Corporation Co., Ltd.”
(Chiangmai Branch).
- “Khon Kaen Distribution Center”
was changed to
“KCG Corporation Co., Ltd.”
(Khon Kaen
Branch).
The
subject achieved many certified standard
certifications, such as ISO 9001
: 2008, GMP, HACCP, HAL-Q, and
HALAL standards.
The subject’s registered address
is 3059, 3059/1-3 Sukhumvit
Road, Bangchak, Prakanong,
Bangkok 10260, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Tong Dhiranusornkit |
|
Thai |
72 |
|
Mr. Damrongkij Vipawatanakul |
|
Thai |
51 |
|
Mr. Pumin Dhiranusornkit |
|
Thai |
40 |
|
Mr. Thawach Dhiranusornkit |
|
Thai |
47 |
|
Mr. Monsan Dhiranusornkit |
|
Thai |
45 |
|
Mr. Damrong Vipawatanakul |
|
Thai |
55 |
|
Mr. Damrongchai Vipawatanakul |
|
Thai |
52 |
AUTHORIZED
PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Tong Dhiranusornkit is
the President and
Chief Executive Officer.
He is Thai
nationality with the
age of 72
years old.
Mr. Damrong Vipawatanakul is
the Senior Executive
Vice President of
Strategic Planning and
Business Development.
He is Thai
nationality with the
age of 55
years old.
Mr. Pumin Dhiranusornkit is
the Executive Vice
President of International
Business.
He is Thai
nationality with the
age of 40
years old.
Mr. Damrongchai Vipawatanakul is
the Vice President
of Sales.
He is Thai
nationality with the
age of 52
years old.
Mr. Monsan Dhiranusornkit is
the Vice President
of Logistics.
He is Thai
nationality with the
age of 45
years old.
Mrs. Lalana Dhiranusornkit is
the Vice President
of Food Innovation
Research and Development.
She is Thai
nationality.
BUSINESS
OPERATIONS
The subject
is engaged in
manufacturing and distributing
of dairy foods
and food products,
such as jam,
jelly, whipping cream,
chocolate and bakery
ingredient, as well
as importing and
distributing wide range of
foods and beverage products,
such as balsamic
vinegar, cake, chocolate,
crackers, filling cake,
French fries, fruits & nut, honey & syrups, margarine & shortening, milk
powder & milk replace,
pasta, tomato products, waffle
crisps, cheese equipment,
coffee, cream, flour & premix, frozen
dough, gelatin, improver & yeast, seafood,
topping & grace, butter &
spreads, cheese, cookies & biscuit, filling & jam, ham & sausage, jelly,
meat, olive oil & salad dressing,
sugar, wafer and
etc.
BRANDS
“FRICO”, “ANGEY BAY”,
“INDEPENDENT”, “SUNQUICK”, “MEGGLE”,
“EMMI”, “GALBANI”, “KERRY”,
“LARNAUDIE”, “COON”, “CORMAN”, “KAWAN”, “ROSY”,
“LA ESPANOLA”, “MEADOWLEA”,
“IMPERIAL”, “MAZZETTI”, “PASTA
VILLA”, “SARALEE” and
etc.
PURCHASE
Raw materials are
purchased from local
suppliers, while the
products are imported
from Argentina, Australia,
Austria, Belgium, Republic
of China, Denmark,
U.K., France, India,
Germany, Netherlands, Indonesia,
Ireland, Italy, Japan,
New Zealand, Norway,
Spain, Switzerland, Turkey,
U.S.A. and others.
MAJOR SUPPLIERS
ConAgra
Foods Lamb Weston
Inc. : U.S.A.
Uni
Clover Co., Ltd. : Japan
Anzco
Foods Ltd. : Norway
Compagnia
Mercantile D’Oltremare S.r.L. : Italy
DMK
Deutsches Milchkontor GmbH. : Germany
Darigold
Inc. : U.S.A.
Jamondor
S.L. : Spain
Emmi
International Ltd. : Switzerland
Kawan
Food Manufacturing Sdn. Bhd. : Malaysia
Backaldrin
International The Kornspitz
Company GmbH. : Austria
Molfino
Hnos S.A. : Argentina
Corman
S.A. : Belgium
SALES
100% of the
products is sold
locally by wholesale
to convenience stores
and
supermarkets nationwide.
MAJOR CUSTOMERS
D.K. Bakery Mart
Trading Co., Ltd.
CP Ram Co.,
Ltd.
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 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
Bank
of Ayudhya Public
Co., Ltd.
Bangkok
Bank Public Co.,
Ltd.
Kasikornbank
Public Co., Ltd.
Krung
Thai Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately
1,300 staff.
LOCATION
DETAILS
The
premise is owned for
administrative office at
the heading address.
Premise is located
in commercial/residential area.
Factories:
-
879, 958/14 Moo 12,
Soi Ruamcharoen [Buakerd],
Bangna-Trad Road, Bangna,
Prakanong,
Bangkok 10260. Tel.: [66]
2399-2143, Fax.: [66] 2747-5193.
-
228 Moo 11,
Theparak Road, Bangplee
Yai, Bangplee, Samutprakarn
10540.
Tel. : [66]
2744-2000, Fax. : [66] 2744-2000.
-
79 Moo 11,
Theparak Road, T. Bangpla,
A. Bangplee, Samutprakarn 10540.
Tel.:
[66] 2752-3252-4, Fax. : [66] 2750-5572.
Branches:
-
2312-2314
Sukhumvit Road, Bangchak,
Prakanong, Bangkok 10260.
Tel.:
[66] 2741-7418-21, Fax. : [66] 2741-4590.
-
55 Soi Bnagna-Trad
3, Bangna-Trad Road,
Bangna, Bangkok 10260.
Tel. : [66]
2747-5191, Fax. : [66] 2747-5194.
- 175/4
Moo 5, T. Nongharn,
A. Sansai, Chiangmai 50290.
Tel.:
[66] 53 878-273
-
401 Moo 1,
Maliwan Road, T. Banped,
A. Muang, Khon Kaen 40000.
Tel.:
[66] 43 382-345,
Fax. : [66] 43 382-349.
-
58 Moo 8,
Bannaluek, T. Klongsai,
A. Thachang, Suratthani 84150.
Tel. : [66]
77 253-619-27, Fax. : [66] 77 253-618.
COMMENT
The
subject is engaged
in manufacturing and
distributing dairy foods
and food products.
The products are
well recognized and
widely accepted in
the local market.
The subject’s operating
performance in 2013 was
depressive with a
decrease in sales
revenues and net
profit comparing to
the previous year
due to high
cost of goods
sold and high
administrative expenses. However, with a
recent business restructuring
in 2014 within
Kim Chua Group
of companies, the
subject expects for
business competency, efficiently
and more profitability
in the long-term
prospect.
FINANCIAL
INFORMATION
The capital
was registered at Bht. 5,000,000 divided
into 5,000 shares
of Bht. 1,000 each with
fully paid.
The
capital was increased
later as follows:
Bht. 90,000,000
on July
18, 1995
Bht. 170,000,000
on September
30, 1997
Bht. 280,000,000
on June
12, 2007
Bht. 330,000,000
on December
12, 2013
The
latest registered capital
was increased to Bht. 330
million, divided into 330,000
shares of Bht. 1,000
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
[as at
September 22, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
United Dairy Foods
Co., Ltd. Nationality: Thai Address : 879
Soi Buakerd, Bangna,
Bangkok |
200,000 |
60.61 |
|
Kim Chua Group
Co., Ltd. Nationality: Thai Address : 3059, 3059/1-3 Sukhumvit Road, Bangchak,
Prakanong, Bangkok |
120,000 |
36.36 |
|
Mr. Vijai Vipawatanakul Nationality: Thai Address : 958/14
Moo 12, Bangna,
Bangkok |
1,000 |
|
|
Mr. Tong Dhiranusornkit Nationality: Thai Address : 81
Soi Chalemprakiat R.9,
Dokmai,
Prawet, Bangkok |
1,000 |
|
|
Mr. Damrong Vipawatanakul Nationality: Thai Address : 3059, 3059/3 Sukhumvit
Road, Bangchak,
Prakanong, Bangkok |
1,000 |
|
|
Mr. Thawach Dhiranusornkit Nationality: Thai Address : 147
Soi Chalemprakiat R.9,
Dokmai,
Prawet, Bangkok |
1,000 |
= 3.03 |
|
Mrs. Suwanna Mahakarn Nationality: Thai Address : 369
Bangna-Trad 27 Road,
Bangna, Bangkok |
1,000 |
|
|
Mr. Damrongchai Vipawatanakul Nationality: Thai Address : 100/122
Moo 11, Bangpla,
Bangplee,
Samutprakarn |
1,000 |
|
|
Mr. Damrongkij Vipawatanakul Nationality: Thai Address : 958/14
Moo 12, Bangna,
Bangkok |
1,000 |
|
|
Mr. Monsan Dhiranusornkit Nationality: Thai Address : 145
Soi Chalemprakiat R.9,
Dokmai,
Prawet, Bangkok |
1,000 |
|
|
Mrs. Pojanan Suksantpanthep Nationality: Thai Address : 69/135
Moo 3, Dokmai,
Prawet, Bangkok |
1,000 |
|
|
Mr. Pumin Dhiranusornkit Nationality: Thai Address : 149
Soi Chalemprakiat R.9,
Dokmai,
Prawet, Bangkok |
1,000 |
|
Total Shareholders : 12
Share
Structure
[as at September 22, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
12 |
330,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
12 |
330,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Pimjai Manitkajornkij No.
4521
Note
The 2014 financial
statement has not
yet available during
investigation.
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 |
7,241,397 |
235,179 |
194,782.71 |
|
Trade Accounts & Other Receivable |
401,920,300 |
118,653,404 |
156,086,863.47 |
|
Inventories |
59,660,937 |
54,526,863 |
69,907,367.41 |
|
Other Current Assets
|
5,719,382 |
522,358 |
13,255,744.80 |
|
Total Current Assets
|
474,542,016 |
173,937,804 |
239,444,758.39 |
|
Long-term Investment |
- |
110,000,000 |
110,000,000.00 |
|
Fixed Assets |
315,826,767 |
315,586,013 |
328,669,908.62 |
|
Intangible Assets |
343,699 |
344,695 |
- |
|
Other Non-current Assets |
889,747 |
1,568,138 |
- |
|
Total Assets |
791,602,229 |
601,436,650 |
678,114,667.01 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Bank Overdraft &
Loan from Bank |
156,095,843 |
111,849,155 |
112,817,026.78 |
|
Trade Accounts & Other Payable |
273,640,487 |
121,152,706 |
187,549,183.46 |
|
Current Portion of Financial Lease Contract Liabilities |
2,078,012 |
947,793 |
- |
|
Current Portion of Long-term
Loans |
23,220,000 |
22,880,000 |
34,400,000.00 |
|
Accrued Income Tax |
1,184,650 |
14,822,589 |
2,940,403.01 |
|
Other Current Liabilities |
3,161,542 |
2,995,039 |
1,675,214.78 |
|
Total Current Liabilities |
459,380,534 |
274,647,282 |
339,381,828.03 |
|
Financial Lease Contract Liabilities, Net of
Current Portion |
2,954,674 |
1,582,199 |
783,628.83 |
|
Long-term Loans, Net
of Current Portion |
45,550,000 |
68,770,000 |
24,099,612.91 |
|
Provision for Employee Benefits |
5,888,672 |
2,716,758 |
- |
|
Total Liabilities |
513,773,880 |
347,716,239 |
364,265,069.77 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share capital
330,000 shares in
2013; 280,000 shares
in 2012 & 2011 |
330,000,000 |
280,000,000 |
280,000,000.00 |
|
Capital Paid |
330,000,000 |
280,000,000 |
280,000,000.00 |
|
Surplus on Revaluation of Assets |
- |
- |
112,423,000.00 |
|
Retained Earning - Unappropriated
|
[52,171,651] |
[26,279,589] |
[78,573,402.76] |
|
Total Shareholders' Equity |
277,828,349 |
253,720,411 |
313,849,597.24 |
|
Total Liabilities & Shareholders' Equity |
791,602,229 |
601,436,650 |
678,114,667.01 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Sales |
840,915,499 |
1,158,620,539 |
863,937,048.64 |
|
Other Income |
16,506,396 |
3,902,016 |
4,581,459.45 |
|
Total Revenues |
857,421,895 |
1,162,522,555 |
868,518,508.09 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
802,428,649 |
1,042,337,111 |
820,715,014.42 |
|
Selling Expenses |
8,974,797 |
13,468,887 |
4,774,481.73 |
|
Administrative Expenses |
62,954,532 |
25,567,976 |
18,761,666.06 |
|
Total Expenses |
874,357,978 |
1,081,373,974 |
844,251,162.21 |
|
Profit / [Loss] before
Financial Cost & Income Tax |
[16,936,083] |
81,148,581 |
24,267,345.88 |
|
Financial Cost |
[8,955,979] |
[11,392,245] |
8,799,240.64 |
|
Profit / [Loss] before Income
Tax |
[25,892,062] |
69,756,336 |
15,468,105.24 |
|
Income Tax |
- |
[17,313,190] |
4,703,603.01 |
|
Net Profit / [Loss] |
[25,892,062] |
52,443,146 |
10,764,502.23 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.03 |
0.63 |
0.71 |
|
QUICK RATIO |
TIMES |
0.89 |
0.43 |
0.46 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.66 |
3.67 |
2.63 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.06 |
1.93 |
1.27 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
27.14 |
19.09 |
31.09 |
|
INVENTORY TURNOVER |
TIMES |
13.45 |
19.12 |
11.74 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
174.45 |
37.38 |
65.94 |
|
RECEIVABLES TURNOVER |
TIMES |
2.09 |
9.76 |
5.53 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
124.47 |
42.42 |
83.41 |
|
CASH CONVERSION CYCLE |
DAYS |
77.12 |
14.05 |
13.62 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
95.42 |
89.96 |
95.00 |
|
SELLING & ADMINISTRATION |
% |
8.55 |
3.37 |
2.72 |
|
INTEREST |
% |
1.07 |
0.98 |
1.02 |
|
GROSS PROFIT MARGIN |
% |
6.54 |
10.37 |
5.53 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(2.01) |
7.00 |
2.81 |
|
NET PROFIT MARGIN |
% |
(3.08) |
4.53 |
1.25 |
|
RETURN ON EQUITY |
% |
(9.32) |
20.67 |
3.43 |
|
RETURN ON ASSET |
% |
(3.27) |
8.72 |
1.59 |
|
EARNING PER SHARE |
BAHT |
(78.46) |
187.30 |
38.44 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.65 |
0.58 |
0.54 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.85 |
1.37 |
1.16 |
|
TIME INTEREST EARNED |
TIMES |
(1.89) |
7.12 |
2.76 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(27.42) |
34.11 |
|
|
OPERATING PROFIT |
% |
(120.87) |
234.39 |
|
|
NET PROFIT |
% |
(149.37) |
387.19 |
|
|
FIXED ASSETS |
% |
0.08 |
(3.98) |
|
|
TOTAL ASSETS |
% |
31.62 |
(11.31) |
|
ANNUALGROWTH:
ACCEPTABLE
An annual sales growth is -27.42%. Turnover has decreased from THB 1,158,620,539.00
in 2012 to THB 840,915,499.00 in 2013. While net profit has decreased from THB
52,443,146.00 in 2012 to THB -25,892,062.00 in 2013. And total assets has
increased from THB 601,436,650.00 in 2012 to THB 791,602,229.00 in 2013.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
6.54 |
Deteriorated |
Industrial
Average |
265.92 |
|
Net Profit Margin |
(3.08) |
Deteriorated |
Industrial
Average |
(0.04) |
|
Return on Assets |
(3.27) |
Deteriorated |
Industrial
Average |
(0.05) |
|
Return on Equity |
(9.32) |
Deteriorated |
Industrial
Average |
(0.10) |
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 6.54%. When compared with
the industry average, the ratio of the company was lower. This indicated that
company may have problems with control over its costs.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company's figure is -3.08%.
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 -3.27%.
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 -9.32%.
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 |
1.03 |
Satisfactory |
Industrial
Average |
1.24 |
|
Quick Ratio |
0.89 |
|
|
|
|
Cash Conversion Cycle |
77.12 |
|
|
|
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 1.03 times in 2013, increased from 0.63 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 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 0.89 times in 2013,
increased from 0.43 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 78 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.65 |
Acceptable |
Industrial
Average |
0.51 |
|
Debt to Equity Ratio |
1.85 |
Risky |
Industrial
Average |
1.04 |
|
Times Interest Earned |
(1.89) |
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 -1.9 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 0.65 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 Uptrend
Times Interest Earned Stable
ACTIVITY:
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.66 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.06 |
Satisfactory |
Industrial
Average |
1.38 |
|
Inventory Conversion Period |
27.14 |
|
|
|
|
Inventory Turnover |
13.45 |
Impressive |
Industrial
Average |
11.74 |
|
Receivables Conversion Period |
174.45 |
|
|
|
|
Receivables Turnover |
2.09 |
Acceptable |
Industrial
Average |
3.96 |
|
Payables Conversion Period |
124.47 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.09 and 9.76 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
decreased from 2012. This would suggest the company had deteriorated 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 increased from 19 days at the
end of 2012 to 27 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 19.12 times in year 2012 to 13.45
times in year 2013.
The company's Total Asset Turnover is calculated as 1.06 times and 1.93 times
in 2013 and 2012 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the average
competitors in the same industry for last 5 years
Fixed Assets Turnover Stable
Total Assets Turnover Downtrend
Inventory Turnover Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.49 |
|
|
1 |
Rs.99.43 |
|
Euro |
1 |
Rs.69.14 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.