MIRA INFORM REPORT
|
Report No. : |
320604 |
|
Report Date : |
08.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
CS. METAL CO., LTD. |
|
|
|
|
Registered Office : |
92 Moo 5, Wellgrow Industrial Estate, Km. 36,
Bangna-Trat Road, T. Bangsamak, A.
Bangpakong, Chachoengsao 24180 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
10.06.1987 |
|
|
|
|
Com. Reg. No.: |
0105530027163 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor and Service Provider of Metal Stamping and
Steel Processing |
|
|
|
|
No. of Employees : |
550 |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
THAILAND - ECONOMIC
OVERVIEW
With a well-developed infrastructure, a free-enterprise
economy, generally pro-investment policies, and strong export industries,
Thailand has had a strong economy due in part to industrial and agriculture
exports - mostly electronics, agricultural commodities, automobiles and parts,
and processed foods. Thailand attracts nearly 2.5 million migrant workers from
neighboring countries. The Thai government in 2013 implemented a nation-wide
300 baht ($10) per day minimum wage policy and deployed new tax reforms
designed to lower rates on middle-income earners. The Thai economy has
weathered both internal and external economic shocks in recent years. The
global economic recession severely cut Thailand's exports, with most sectors experiencing
double-digit drops. In late 2011 Thailand's recovery was interrupted by
historic flooding in the industrial areas in Bangkok and its five surrounding
provinces, crippling the manufacturing sector. Government approved flood
mitigation projects, worth $11.7 billion, were started in 2012 to prevent a
repeat. Thai growth slowed in 2013 and has remained low since, as the country
faced political uncertainty and a coup in May 2014. The interim government is
implementing a special $11 billion short-term stimulus package and has approved
a budget of more than $80 billion to aid an economic rebound.
|
Source
: CIA |
Company
Name
CS. METAL CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 92
MOO 5, WELLGROW
INDUSTRIAL ESTATE,
KM. 36,
BANGNA-TRAT ROAD, T.
BANGSAMAK,
A. BANGPAKONG,
CHACHOENGSAO 24180,
THAILAND
TELEPHONE : [66] 38
570-744-53
FAX :
[66] 38
570-272-3
E-MAIL ADDRESS : webmaster@csmetal.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1987
REGISTRATION
NO. : 0105530027163 [Former: 2712/2530]
TAX
ID NO. : 3101451382
CAPITAL REGISTERED : BHT. 600,000,000
CAPITAL PAID-UP : BHT.
600,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
FOREIGN :
49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
JUN MAESHIMA, JAPANESE
PRESIDENT
NO.
OF STAFF : 550
LINES
OF BUSINESS : METAL
STAMPING AND STEEL
PROCESSING
MANUFACTURER, DISTRIBUTOR
AND SERVICE
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 June 10,
1987 as a
private limited company
under the name
style CS. METAL
CO., LTD., by
Thai and foreign
groups, with the
business objective to manufacture metal
stamping and steel
processing service for industrial
parts. It currently
employs approximately 550
staff.
The
subject also achieved
the ISO 9001 and
ISO 14001 certifications.
The
subject’s registered address
was 127 Moo 2, Soi
Pookmitr, Poochaosamingprai
Rd., Samrongtai, Phrapradaeng,
Samutprakarn 10130.
On
December 3, 2010
the registered address
was relocated to 92 Moo
5, Wellgrow Industrial
Estate, Km. 36,
Bangna-Trat Rd. T.
Bangsamak, A. Bangpakong,
Chachoengsao 24180, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Suchart Pongvatnanusorn |
[x] |
Thai |
62 |
|
Mr. Katsuya Inubushi |
|
Japanese |
52 |
|
Mr. Suchai Pongvatnanusorn |
[x] |
Thai |
61 |
|
Mr. Kazunari Sakata |
[-] |
Japanese |
54 |
|
Ms. Varaporn Pongvatnanusorn |
|
Thai |
56 |
|
Mr. Jun Maeshima |
[-] |
Japanese |
57 |
AUTHORIZED
PERSON
One of the
mentioned directors [x]
and [-] can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Jun Maeshima is
the President
He is Japanese
nationality with the
age of 57
years old.
Mr. Suchai Pongvatnanusorn is
the Vice President.
He is Thai
nationality with the
age of 61
years old.
Mrs. Kamlai Sripeng is
the Sales Manager.
She is Thai
nationality.
Mr. Chalermchai Ritthidej is the
Factory Manager.
He is Thai
nationality.
BUSINESS
OPERATIONS
The subject’s business
activities are a
coil center to
supply steel plate to
many industrial manufacturers, as
well as manufacturing, distributing
and servicing as follows:
-
Manufacturing
of metal stamping
for various products
such as home
appliances, audio
equipment, computer parts,
electrical parts, office
equipment
parts, building
material, automotive body
& parts and
etc.
-
Importing
and distributing of
steel products such
as steel coil
and steel sheet.
-
Steel
processing services such
as cutting, slitting,
rolling, bending, blanking,
shearing and
etc., according to customer’s order.
PRODUCTION CAPACITY
90,000 tons per
annum
PURCHASE
80% of raw
materials are purchased
from local suppliers,
the remaining 20% including
steel coil and
steel sheet are
imported from Japan,
Taiwan, Korea, Republic
of China and
Australia.
MAJOR SUPPLIERS
Sumitomo
Corporation : Japan
Sahaviriya
Steel Industries Public
Co., Ltd. : Thailand
SALES
100% of the
products is sold
and serviced locally
to manufacturers, wholesalers
and end-users.
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 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
or T/T.
BANKING
Sumitomo Mitsui Banking
Corporation
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject
employs approximately 550
office staff and
factory workers.
LOCATION
DETAILS
The
premise is owned
for administrative office
and factory I,
at the heading
address. Premise is
located in an industrial area.
Factory
II : 101/109
Moo 20, Navanakorn
5/6 Rd., T.
Klongnueng, A. Klongluang,
Pathumthani 12120.
Tel.: [66] 2529-5745-54,
Fax: [66] 2529-5744
Factory
III : 99/6 Moo
10, T. Nongkham, A. Sriracha,
Chonburi 20230.
Tel.
[66] 38 338-378,
Fax. [66] 338-388.
COMMENT
In 2013, Thailand
has been adversely
affected by ongoing
political turmoil and at the same
time its economy
also experienced some
downturns growth, which is
reflected in lower annual
growth targets forecasted
by public and
private sector. Despite
some economic recovery signs
from the US and Europe,
as a result
of a series of
quantitative easing monetary policy,
the US and
Europe’s growth is
still fragile with
a risk of high volatility. These
factors had an
unavoidable effect on
its company’s performance.
In 2013, the company’s sales
and net profit
were down from
the previous years, as
well as the
business in 2014
was also performed
downward.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 50,000,000 divided
into 50,000 shares
of Bht. 1,000
each.
The
capital was increased
later as following:
Bht. 120,000,000 on
June 30, 1989
Bht. 360,000,000 on
July 30, 1998
Bht. 450,000,000 on
November 25, 2004
Bht. 600,000,000 on
July 14, 2006
The
latest registered capital
was increased to Bht.
600,000,000 divided into
600,000 shares of
Bht. 1,000 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
[as at
April 23, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Asian Steel Pte.
Ltd. Nationality: Singaporean Address : 10
Gulf Circle, Jurong,
Singapore |
288,000 |
48.00 |
|
CH Autoparts Co.,
Ltd. Nationality: Thai Address : 127
Moo 2, Samrongtai,
Phrapradaeng,
Samutprakarn |
135,000 |
22.50 |
|
Mr. Chalit Pongvatnanusorn Nationality: Thai Address : 593
Rimtangrodfai Nonsee Rd.,
Klongtoey, Bangkok |
30,000 |
5.00 |
|
Mr. Suchart Pongvatnanusorn Nationality: Thai Address : 127
Moo 2, Samrongtai,
Phrapradaeng, Samutprakarn |
30,000 |
5.00 |
|
Mr. Suchai Pongvatnanusorn Nationality: Thai Address : 593 Rimtangrodfai Nonsee
Rd., Klongtoey, Bangkok |
30,000 |
5.00 |
|
Mr. Veerasak Pongvatnanusorn Nationality: Thai Address : 127
Moo 2, Samrongtai,
Phrapradaeng,
Samutprakarn |
30,000 |
5.00 |
|
Ms. Varaporn Pongvatnanusorn Nationality: Thai Address : 112/80
Moo 7, Klongthanon, Bangkhen,
Bangkok |
30,000 |
5.00 |
|
Ms. Kaldarat Pakpraphan Nationality: Thai Address : 593
Rimtangrodfai Nonsee Rd.,
Klongtoey, Bangkok |
15,000 |
2.50 |
|
Sumi-Thai International
Co., Ltd. Nationality: Thai Address : 87
M Thai Tower,
All Season Place,
Wireless Rd., Lumpini,
Pathumwan, Bangkok |
6,000 |
1.00 |
|
Sonoda Engineering Co., Ltd. Nationality: Japanese Address : 15-11,
1-Chome, Tokura, Toyonaka,
Osaka, Japan |
6,000 |
1.00 |
Total Shareholders : 10
Share Structure [as at
April 27, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
8 |
306,000 |
51.00 |
|
Foreign |
2 |
294,000 |
49.00 |
|
Total |
10 |
600,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Sangworn Sutthisanont No.
0097
BALANCE
SHEET [BAHT]
The
latest financial figures
published for December 31,
2013, 2012 & 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalent |
43,552,485.80 |
50,332,091.73 |
49,264,564.06 |
|
Trade Accounts & Other Receivable |
1,494,918,193.45 |
1,394,333,836.51 |
798,074,953.31 |
|
Inventories |
1,417,899,737.21 |
1,803,587,652.33 |
1,892,467,464.90 |
|
Other Current Assets |
12,747,921.31 |
10,037,595.44 |
11,023,006.97 |
|
|
|
|
|
|
Total Current Assets
|
2,969,118,337.77 |
3,258,291,176.04 |
2,750,829,989.24 |
|
|
|
|
|
|
Fixed Assets |
1,381,785,261.96 |
1,110,205,069.92 |
667,446,012.84 |
|
Intangible Assets |
14,439,363.40 |
10,727,408.95 |
4,297,847.78 |
|
Other Assets - Flood
Damage |
- |
- |
337,857,449.17 |
|
Total Assets |
4,365,342,963.13 |
4,379,223,654.88 |
3,760,431,299.03 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term
Loan from Financial Institution |
2,627,000,000.00 |
2,426,000,000.00 |
2,011,000,000.00 |
|
Trade Accounts &
Other Payable |
465,087,976.64 |
602,533,446.33 |
380,662,495.95 |
|
Accrued Income Tax |
- |
7,336,686.77 |
5,405,914.72 |
|
Other Current Liabilities |
3,950,000.00 |
3,950,000.00 |
3,950,000.00 |
|
|
|
|
|
|
Total Current Liabilities |
3,096,037,976.64 |
3,039,820,133.10 |
2,401,018,410.67 |
|
Employee Benefit Obligation |
52,802,100.00 |
51,430,500.00 |
41,963,000.00 |
|
Other Non-current Liabilities |
- |
- |
123,000,000.00 |
|
Total Liabilities |
3,148,840,076.64 |
3,091,250,633.10 |
2,565,981,410.67 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 600,000 shares |
600,000,000.00 |
600,000,000.00 |
600,000,000.00 |
|
|
|
|
|
|
Capital Paid |
600,000,000.00 |
600,000,000.00 |
600,000,000.00 |
|
Retained Earning Appropriated for
statutory reserve |
60,000,000.00 |
60,000,000.00 |
60,000,000.00 |
|
Unappropriated |
556,502,886.49 |
627,973,021.78 |
534,449,888.36 |
|
Total Shareholders' Equity |
1,216,502,886.49 |
1,287,973,021.78 |
1,194,449,888.36 |
|
Total Liabilities &
Shareholders' Equity |
4,365,342,963.13 |
4,379,223,654.88 |
3,760,431,299.03 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
7,487,905,146.79 |
8,147,538,560.58 |
6,480,567,540.95 |
|
Services Income |
67,269,390.59 |
86,897,746.06 |
72,845,707.14 |
|
Related Sales Income |
154,057,062.02 |
888,636,102.66 |
520,758,299.51 |
|
Other Income |
43,653,079.14 |
115,868,575.52 |
45,788,560.22 |
|
Total Revenues |
7,752,884,678.54 |
9,238,940,984.82 |
7,119,960,107.82 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Sales & Services |
7,336,370,795.38 |
7,907,137,063.64 |
- |
|
Cost of During |
154,057,062.02 |
888,636,102.66 |
- |
|
Selling and Administrative Expenses |
215,654,394.28 |
226,979,646.26 |
- |
|
Change in Finished Goods |
- |
- |
[778,359,008.51] |
|
Material Supplies |
- |
- |
6,732,104,111.02 |
|
Cost of Purchase
Goods |
- |
- |
520,758,299.51 |
|
Employees Expenses |
- |
- |
125,342,558.71 |
|
Depreciation and Amortization |
- |
- |
105,218,200.57 |
|
Other Expenses |
- |
- |
271,486,997.44 |
|
Total Expenses |
7,706,082,251.68 |
9,022,752,812.56 |
6,976,551,158.74 |
|
|
|
|
|
|
Profit before Financial Cost & Income Tax |
46,802,426.86 |
216,188,172.26 |
143,408,949.08 |
|
Financial Cost |
[58,272,562.15] |
[69,537,666.89] |
[57,522,139.13] |
|
Profit / [Loss] before Income
Tax |
[11,470,135.29] |
146,650,505.37 |
85,886,809.95 |
|
Income Tax |
- |
[23,127,371.95] |
[28,356,876.76] |
|
|
|
|
|
|
Net Profit / [Loss] |
[11,470,135.29] |
123,523,133.42 |
57,529,933.19 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.96 |
1.07 |
1.15 |
|
QUICK RATIO |
TIMES |
0.50 |
0.48 |
0.35 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.47 |
7.42 |
9.82 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.73 |
1.88 |
1.74 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
69.09 |
74.84 |
95.24 |
|
INVENTORY TURNOVER |
TIMES |
5.28 |
4.88 |
3.83 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
72.22 |
61.81 |
44.45 |
|
RECEIVABLES TURNOVER |
TIMES |
5.05 |
5.91 |
8.21 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
22.66 |
25.00 |
19.16 |
|
CASH CONVERSION CYCLE |
DAYS |
118.65 |
111.65 |
120.53 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
99.14 |
106.82 |
110.67 |
|
SELLING & ADMINISTRATION |
% |
2.85 |
2.76 |
3.52 |
|
INTEREST |
% |
0.77 |
0.84 |
0.88 |
|
GROSS PROFIT MARGIN |
% |
3.47 |
5.38 |
(2.03) |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.62 |
2.63 |
2.19 |
|
NET PROFIT MARGIN |
% |
(0.15) |
1.50 |
0.88 |
|
RETURN ON EQUITY |
% |
(0.94) |
9.59 |
4.82 |
|
RETURN ON ASSET |
% |
(0.26) |
2.82 |
1.53 |
|
EARNING PER SHARE |
BAHT |
(19.12) |
205.87 |
95.88 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.72 |
0.71 |
0.68 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.59 |
2.40 |
2.15 |
|
TIME INTEREST EARNED |
TIMES |
0.80 |
3.11 |
2.49 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(8.25) |
25.65 |
|
|
OPERATING PROFIT |
% |
(78.35) |
50.75 |
|
|
NET PROFIT |
% |
(109.29) |
114.71 |
|
|
FIXED ASSETS |
% |
24.46 |
66.34 |
|
|
TOTAL ASSETS |
% |
(0.32) |
16.46 |
|
ANNUAL
GROWTH: RISKY
An annual sales growth is -8.25%. Turnover has decreased from THB
8,234,436,306.64 in 2012 to THB 7,555,174,537.38 in 2013. While net profit has
decreased from THB 123,523,133.42 in 2012 to THB -11,470,135.29 in 2013. And
total assets has decreased from THB 4,379,223,654.88 in 2012 to THB
4,365,342,963.13 in 2013.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
3.47 |
Deteriorated |
Industrial
Average |
14.28 |
|
Net Profit Margin |
(0.15) |
Deteriorated |
Industrial
Average |
1.33 |
|
Return on Assets |
(0.26) |
Deteriorated |
Industrial
Average |
3.66 |
|
Return on Equity |
(0.94) |
Deteriorated |
Industrial
Average |
14.48 |
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 3.47%. 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 -0.15%.
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 -0.26%.
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 -0.94%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.96 |
Risky |
Industrial
Average |
1.23 |
|
Quick Ratio |
0.50 |
|
|
|
|
Cash Conversion Cycle |
118.65 |
|
|
|
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 0.96 times in 2013, decreased from 1.07 times, then the company may
have problems meeting its short-term obligations. 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 0.5 times in 2013,
increased from 0.48 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 119 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.72 |
Impressive |
Industrial
Average |
0.74 |
|
Debt to Equity Ratio |
2.59 |
Acceptable |
Industrial
Average |
2.78 |
|
Times Interest Earned |
0.80 |
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 0.81 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 0.72 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
5.47 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.73 |
Acceptable |
Industrial
Average |
2.75 |
|
Inventory Conversion Period |
69.09 |
|
|
|
|
Inventory Turnover |
5.28 |
Acceptable |
Industrial
Average |
7.73 |
|
Receivables Conversion Period |
72.22 |
|
|
|
|
Receivables Turnover |
5.05 |
Impressive |
Industrial Average |
5.00 |
|
Payables Conversion Period |
22.66 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.05 and 5.91 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 decreased from 75 days at the
end of 2012 to 69 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 4.88 times in year 2012 to 5.28 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.73 times and 1.88
times in 2013 and 2012 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Stable
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.88 |
|
|
1 |
Rs.97.21 |
|
Euro |
1 |
Rs.72.51 |
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.