MIRA INFORM REPORT
|
Report No. : |
323747 |
|
Report Date : |
26.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
NMB-MINEBEA THAI LIMITED |
|
|
|
|
Registered Office : |
1 Moo 7, Phaholyothin Road, K.M. 51, T. Chiengraknoi, A. Bangpa-In, Ayutthaya 13180 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
01.04.2008 |
|
|
|
|
Com. Reg. No.: |
0145551000663 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged
in manufacturing, exporting
and distributing electronic parts for various industries as follows:
|
|
|
|
|
No. of Employee : |
31,761 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No complaints |
|
|
|
|
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 and address
NMB-MINEBEA THAI
LIMITED
SUMMARY
BUSINESS
ADDRESS : 1
MOO 7, PHAHOLYOTHIN
ROAD, K.M. 51,
T. CHIENGRAKNOI,
A. BANGPA-IN,
AYUTTHAYA 13180,
THAILAND
TELEPHONE : [66] 35
361-429, 35 361-439
FAX :
[66] 35
361-177, 35 361-477
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2008
REGISTRATION
NO. : 0145551000663
TAX
ID NO. : 3033008302
CAPITAL REGISTERED : BHT. 17,455,363,600
CAPITAL PAID-UP : BHT.
15,305,363,600
SHAREHOLDER’S PROPORTION : JAPANESE
: 100%
FISCAL YEAR CLOSING DATE : MARCH 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
MASAYUKI IMANAKA, JAPANESE
REGIONAL MANAGER
OF ASIA
NO.
OF STAFF : 31,761
LINES
OF BUSINESS : ELECTRONIC PARTS
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established on April
1, 2008 as
a private limited
company under the name style
“NMB-MINEBEA THAI LIMITED” by
Japanese groups. The subject has
been amalgamated among
7 companies as
follows:
-
NMB
Thai Ltd. [Reg.
no. 0105523014701]
-
Minebea
Thai Ltd. [Reg.
no. 0105527017896]
-
Pelmec
Thai Ltd. [Reg.
no. 0105527017888]
-
Power
Electronic of Minebea
Co., Ltd. [Reg. no. 0105530022668]
-
Minebea
Electronic [Thailand] Co.,
Ltd. [Reg. no.
0105531019121]
-
NMB
Hi-Tech Bearing Ltd. [Reg.
no. 0105531096266]
-
NMB
Precision Balls Co.,
Ltd. [Reg.
no. 0105531096274]
The subject’s business
objective is to
manufacture electronic parts
through 13 factories
nationwide for both
local and overseas
markets. It currently
employs 31,761 staff.
The
subject’s registered address is 1
Moo 7, Phaholyothin Rd., K.M. 51,
T. Chiengraknoi, A.
Bangpa-in, Ayutthaya 13180,
and this is
the subject’s current
operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Hirotaka Fujita |
|
Japanese |
63 |
|
Mr. Hiroyuki Yajima |
|
Japanese |
64 |
|
Mr. Somchai Yurungruengsak |
|
Thai |
60 |
|
Mr. Kriengsak Eurchalitnukul |
|
Thai |
55 |
|
Mr. Hiroharu Katogi |
|
Japanese |
66 |
|
Mr. Shuji Uehara |
|
Japanese |
60 |
|
Ms. Sunee Cherdchuchart |
|
Thai |
51 |
|
Mr. Masayuki Imanaka |
|
Japanese |
60 |
AUTHORIZED
PERSON
Any two of
the above directors
can jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Masayuki Imanaka is
the Regional Manager
of Asia.
He is Japanese
nationality with the
age of 60
years old.
Ms. Sunee Cherdchuchart is
the Executive Director.
She is Thai
nationality with the
age of 51
years old.
BUSINESS
OPERATIONS
The subject is
engaged in manufacturing, exporting
and distributing electronic parts for various
industries as follows:
1. Office and household
electric appliances, information
and telecommunication
equipment
- Small
sized ball bearings
- Miniature & instrument ball
bearings
- Spindle
Motor for HDDs
- Fluid
Dynamic Bearings
- Pivot
- PM
stepping motor
- Load cells
- Strain
gauges
- Color
wheel
- Backlight
inverters
- Lighting
devices for LCDs
- Cool
leaf [next generation input
device]
- HMSM
[Heat Management System
Module]
- HB
Stepping Motors
2. Aerospace and automobile
- DC
brushless motors for
electric power steering
- Electro
magnetic clutch
- Electro
resolver sensor
- Stepping
motor for automotive instrument panel
- Rodend
& spherical bearing
machined parts for
aircraft
- PM
stepping motor
- Miniature
& instrument ball
bearing
3. Support products
- Dies & tools
- Precision
machined parts
- Pressed
parts
- Steel
balls for ball
bearings
- Die-cast
parts
- PC
boards
- Pressed
parts & machined parts
- Injection
molded parts
- Rare
earth bonded magnets
- Hard
ferrites injection molded
parts
- Plastic
magnets
PURCHASE
40% of raw
materials is purchased
from local suppliers.
IMPORT
60%
of raw material,
plastic resin, steel
and stainless are
imported from Japan,
Republic of
China, Taiwan, India,
Australia, Germany, France
and Singapore.
MAJOR
SUPPLIER
Minebea
Ltd. :
Japan
SALES
10 % of the
products is sold
locally to manufacturers
and wholesalers.
EXPORT
90% of the
products is exported
to U.S.A., Australia, Canada and many
countries in Asia, Europe
and Middle East
regions.
SUBSIDIARY
AND AFFILIATED COMPANIES
Minebea Electronics Motor
[Thailand] Co., Ltd.
Business Type :
Manufacturer & distributor
of electronic parts
NMB Mechatronics [Thailand]
Co., Ltd.
Business Type :
Manufacturer & distributor
of electronic parts
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.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs 31,761
staff.
LOCATION
DETAILS
The
premise is owned
for administrative office and
factory at the
heading address. Premise
is located in
provincial.
The
other 14 factories are
located at the
following addresses:
- 18 Moo
3, Asia Highway,
K.M. 72, T.
Thanu, A. Uthai,
Ayutthaya
- 1/14
Moo 5, Rojana Rd.,
T. Kanham, A.
Uthai, Ayutthaya
- 5/2 Moo
8, Phaholyothin Rd.,
K.M. 149, Muang,
Lopburi
- 135
Moo 5 Bangpa-in Rd.,
T. Chiangraknoi, A.
Samkoh, Pathumthani
- 361
Moo 3, T. Kroksomboon, A. Srimahaphote, Prachinburi 25140
- 552/2
Moo 10, Industrial Zone
304, T. Thatoom,
A. Srimahapoe, Prachinburi
- 44/4
Moo 15, T. Soongnern, A.
Soongnern,
Nakornratchasima
- 268
Moo 5, T. Lamsai, A. Wangnoi, Ayutthaya
- 60 Moo
2, T. Banpoe,
A. Bangpa-in, Ayutthaya
- 48/99 Moo 14,
Phaholyothin Rd., K.M.
48, T. Klongnueng, A. Klongluang,
Pathumthani 12120
- 60/118
Moo 19, T. Klongnueng, A. Klongluang, Pathumthani
- 48/82
Moo 14, Phaholyothin Rd., K.M. 48, T. Klongnueng, A. Klongluang,
Pathumthani
12120
- 92
Moo 1, T. Banlane, A. Bangpa-in, Ayutthaya 13160
- 88
Moo 1, T. Banlane, A. Bangpa-in, Ayutthaya 13160
Bangkok
offices:
- 19th Flr.,
Wave Place Bldg.,
55 Wireless Rd.,
Lumpinee, Pathumwan, Bangkok
- 36/14
Moo 8, Vibhavadee Rangsit
Rd., Sikan, Donmuang, Bangkok
COMMENT
Subject
was formed in 2008 as a
manufacturer, exporter and
distributor of electronic parts.
Minebea is one of the country
largest manufacturers of electronic
parts for domestic and
world markets. In
recent months it
has seen positive
trends after figures
recovered in some
industries. However shipment
will still rely on the overall
global economy, especially
USA and EU
countries which are the major
destinations of Thai
electronic parts.
Nevertheless, subject
still sustains its
solid business.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 17,455,363,600 divided
into 174,553,636 shares of Bht.
100 each, with
the current capital
paid-up at Bht.
15,305,363,600.
THE
SHAREHOLDERS LISTED WERE
[as
at June 6,
2014] at Bht. 15,305,363,600 of
capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Minebea Co., Ltd. Nationality: Japanese Address : 4106-73
Oaza Miyota, Miyota-machi,
Kitasaku-gun, Nagano, Japan |
174,553,634 |
100.00 |
|
Ms. Sunee Cherdchuchart Nationality: Thai Address : 1 Moo 7,
Phaholyothin Rd., K.M.
51, T. Chiengraknoi, A. Bangpa-in, Ayutthaya |
1 |
- |
|
Mr. Yukihiro Fujii Nationality: Japanese Address : 1 Moo 7,
Phaholyothin Rd., K.M.
51, T. Chiengraknoi, A. Bangpa-in, Ayutthaya |
1 |
- |
Total Shareholders : 3
Share Structure [as
at June 6,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
1 |
- |
|
Foreign - Japanese |
2 |
174,553,635 |
100.00 |
|
Total |
3 |
174,553,636 |
100.00 |
NAME
OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Ms. Wannaporn
Jongpeeradechanon No. 4098
BALANCE
SHEET [BAHT]
The latest financial figures published
as at March
31, 2014, 2013
& 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
133,920,442 |
43,725,488 |
37,247,288 |
|
Trade Accounts Receivable
|
9,738,113,147 |
6,487,767,748 |
6,586,922,527 |
|
Other Receivable |
15,856,734 |
82,248,729 |
65,367,017 |
|
Short-term Lending to
Related Company |
- |
70,000,000 |
51,000,000 |
|
Inventories |
5,725,940,342 |
5,435,272,237 |
5,691,699,847 |
|
Other Current Assets
|
461,852,485 |
373,666,553 |
2,008,958,245 |
|
|
|
|
|
|
Total Current Assets
|
16,075,683,150 |
12,492,680,755 |
14,441,194,924 |
|
Investment in Subsidiaries |
5,321,250 |
- |
- |
|
Investment in Associated Company |
9,000,000 |
9,000,000 |
9,000,000 |
|
Long-term Loan |
21,000,000 |
21,000,000 |
21,000,000 |
|
Fixed Assets |
26,678,784,295 |
27,981,295,452 |
25,492,811,727 |
|
Goodwill |
- |
- |
26,954,310 |
|
Intangible Assets |
32,282,540 |
23,688,300 |
37,235,520 |
|
Deferred Income Tax |
307,011,032 |
340,070,930 |
277,199,420 |
|
Other Non-current Assets |
21,459,177 |
22,373,114 |
22,169,396 |
|
Total Assets |
43,150,541,444 |
40,890,108,551 |
40,327,565,297 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Short-term Loan from Financial Institutions |
1,165,000,000 |
4,647,000,000 |
853,000,000 |
|
Trade Accounts Payable
|
5,112,939,143 |
2,984,943,005 |
3,645,206,933 |
|
Other Payable |
988,503,985 |
567,096,687 |
2,077,026,472 |
|
Short-term Loan from Related Company |
10,272,835,300 |
11,707,423,500 |
12,732,416,800 |
|
Other Current Liabilities |
953,616,330 |
529,759,238 |
690,939,866 |
|
|
|
|
|
|
Total Current Liabilities |
18,492,894,758 |
20,436,222,430 |
19,998,590,071 |
|
Estimated Liabilities from Provision
of Employee
Retirement Benefits |
1,448,275,290 |
1,152,960,069 |
866,595,929 |
|
Estimated Liabilities |
57,096,466 |
93,942,372 |
103,247,767 |
|
Deferred Income Tax
Liabilities |
- |
- |
1,114,299 |
|
Other Non-current Liabilities |
235,000 |
295,000 |
20,620,773 |
|
Total Liabilities |
19,998,501,514 |
21,683,419,871 |
20,990,168,839 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value Authorized & issued
share capital 174,553,636 shares |
17,455,363,600 |
17,455,363,600 |
17,455,363,600 |
|
|
|
|
|
|
Capital Paid |
15,305,363,600 |
15,305,363,600 |
15,305,363,600 |
|
Premium on Share Capital |
145,676,360 |
145,676,360 |
145,676,360 |
|
Retained Earnings: Appropriated for Statutory Reserve |
1,129,364,000 |
1,121,764,000 |
1,042,389,000 |
|
Unappropriated |
6,571,635,970 |
2,633,884,720 |
2,843,967,498 |
|
Total Shareholders' Equity |
23,152,039,930 |
19,206,688,680 |
19,337,396,458 |
|
Total Liabilities &
Shareholders' Equity |
43,150,541,444 |
40,890,108,551 |
40,327,565,297 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
61,212,931,933 |
47,042,098,305 |
40,657,595,881 |
|
Gain on Exchange Rate |
- |
72,040,050 |
37,129,152 |
|
Insurance Compensation |
- |
846,419,842 |
3,800,000,000 |
|
Other Income |
368,906,065 |
1,620,419,411 |
456,606,745 |
|
Total Revenues |
61,581,837,998 |
49,580,977,608 |
44,951,331,778 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
53,590,648,696 |
43,161,216,362 |
37,093,949,365 |
|
Selling Expenses |
1,942,080,363 |
1,441,449,049 |
1,302,127,753 |
|
Administrative Expenses |
719,884,461 |
2,532,911,907 |
2,443,928,266 |
|
Loss on Exchange Rate |
29,853,987 |
- |
- |
|
Loss from Flood
Incident |
- |
59,086,106 |
1,833,491,017 |
|
Financial Cost |
444,080,939 |
578,130,105 |
437,614,315 |
|
Total Expenses |
56,726,548,446 |
47,772,793,529 |
43,111,110,716 |
|
|
|
|
|
|
Profit / [Loss] before Income
Tax |
4,855,289,552 |
1,808,184,079 |
1,840,221,062 |
|
Income Tax |
[759,822,175] |
[390,791,588] |
[24,562,870] |
|
|
|
|
|
|
Profit / [Loss] for the Year
from Continuous Operation |
4,095,467,377 |
1,417,392,491 |
1,815,658,192 |
|
Profit / [Loss] from Discontinuation of Operation |
- |
39,080,896 |
[168,200,531] |
|
Net Profit / [Loss] |
4,095,467,377 |
1,456,473,387 |
1,647,457,661 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.87 |
0.61 |
0.72 |
|
QUICK RATIO |
TIMES |
0.53 |
0.33 |
0.34 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.29 |
1.68 |
1.59 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.42 |
1.15 |
1.01 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
39.00 |
45.96 |
56.01 |
|
INVENTORY TURNOVER |
TIMES |
9.36 |
7.94 |
6.52 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
58.07 |
50.34 |
59.13 |
|
RECEIVABLES TURNOVER |
TIMES |
6.29 |
7.25 |
6.17 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
34.82 |
25.24 |
35.87 |
|
CASH CONVERSION CYCLE |
DAYS |
62.24 |
71.06 |
79.27 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
87.55 |
91.75 |
91.23 |
|
SELLING & ADMINISTRATION |
% |
4.35 |
8.45 |
9.21 |
|
INTEREST |
% |
0.73 |
1.23 |
1.08 |
|
GROSS PROFIT MARGIN |
% |
13.05 |
13.65 |
19.33 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
7.93 |
3.84 |
4.53 |
|
NET PROFIT MARGIN |
% |
6.69 |
3.10 |
4.05 |
|
RETURN ON EQUITY |
% |
17.69 |
7.58 |
8.52 |
|
RETURN ON ASSET |
% |
9.49 |
3.56 |
4.09 |
|
EARNING PER SHARE |
BAHT |
26.76 |
9.52 |
10.76 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.46 |
0.53 |
0.52 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.86 |
1.13 |
1.09 |
|
TIME INTEREST EARNED |
TIMES |
10.93 |
3.13 |
4.21 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
30.12 |
15.70 |
|
|
OPERATING PROFIT |
% |
168.52 |
(1.74) |
|
|
NET PROFIT |
% |
181.19 |
(11.59) |
|
|
FIXED ASSETS |
% |
(4.65) |
9.76 |
|
|
TOTAL ASSETS |
% |
5.53 |
1.39 |
|
ANNUAL
GROWTH : IMPRESSIVE
An annual sales growth is 30.12%. Turnover has increased from THB
47,042,098,305.00 in 2013 to THB 61,212,931,933.00 in 2014. While net profit
has increased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
13.05 |
Impressive |
Industrial
Average |
- |
|
Net Profit Margin |
6.69 |
Impressive |
Industrial
Average |
6.59 |
|
Return on Assets |
9.49 |
Acceptable |
Industrial
Average |
15.90 |
|
Return on Equity |
17.69 |
Acceptable |
Industrial
Average |
30.37 |
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 13.05%. When
compared with the industry average, the ratio of the company was higher,
indicated that company was more profitable than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company’s figure is 6.69%, higher figure when
compared with those of its average competitors in the same industry, indicated
that business was an efficient operator
in a dominant position within its industry.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. When compared with the
industry average, it was lower, the company's figure is 9.49%.
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 17.69%.
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 |
0.87 |
Risky |
Industrial
Average |
0.86 |
|
Quick Ratio |
0.53 |
|
|
|
|
Cash Conversion Cycle |
62.24 |
|
|
|
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 0.87 times in 2014, increased from 0.61 times, then the company may
have problems meeting its short-term obligations. When compared with the
industry average, the ratio of the company was higher, indicated that company
was an efficient operator in a dominant position within its industry.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 0.53 times in 2014,
increased from 0.33 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 63 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.46 |
Impressive |
Industrial
Average |
0.47 |
|
Debt to Equity Ratio |
0.86 |
Impressive |
Industrial
Average |
0.88 |
|
Times Interest Earned |
10.93 |
Impressive |
Industrial
Average |
- |
Debt to Equity Ratio a measurement of how much suppliers, lenders,
creditors and obligors have committed to the company versus what the shareholders
have committed. A lower the percentage means that the company is using less
leverage and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 10.94 higher than 1, so the company can pay interest
expenses on outstanding debt.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.46 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 |
2.29 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.42 |
Acceptable |
Industrial
Average |
2.41 |
|
Inventory Conversion Period |
39.00 |
|
|
|
|
Inventory Turnover |
9.36 |
Acceptable |
Industrial
Average |
13.45 |
|
Receivables Conversion Period |
58.07 |
|
|
|
|
Receivables Turnover |
6.29 |
Satisfactory |
Industrial
Average |
7.55 |
|
Payables Conversion Period |
34.82 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.29 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 46 days at the
end of 2013 to 39 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 7.94 times in year 2013 to 9.36 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.42 times and 1.15
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.63.62 |
|
|
1 |
Rs.96.51 |
|
Euro |
1 |
Rs.69.93 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ANK |
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.