MIRA INFORM REPORT
|
Report No. : |
325433 |
|
Report Date : |
30.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
ORIENTAL COPPER CO., LTD. |
|
|
|
|
Registered Office : |
27th Floor, Bangkok Insurance / Ywca Building, South Sathorn Road, Thungmahamek,Sathorn, Bangkok 10120 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
11.01.1994 |
|
|
|
|
Com. Reg. No.: |
0105537003987 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in manufacturing wide range
of Copper Busbar
and Copper Fabricated
products for electric power generation,
electronic and non-electrical industries. |
|
|
|
|
No. of Employee : |
250 |
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 |
|
|
|
|
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 achieved steady growth due largely to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Unemployment, at less than 1% of the labor force, stands as one of the lowest levels in the world, which puts upward pressure on wages in some industries. Thailand also 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 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. The government approved flood mitigation projects worth $11.7 billion, which were started in 2012, to prevent similar economic damage, and an additional $75 billion for infrastructure over the following seven years. This was expected to lead to an economic upsurge but growth has remained slow, in part due to ongoing political unrest and resulting uncertainties. Spending on infrastructure will require re-approval once a new government is seated.
|
Source
: CIA |
Company
name
ORIENTAL COPPER CO., LTD.
SUMMARY
ADDRESS : 27th FLOOR,
BANGKOK INSURANCE / YWCA BUILDING,
25
SOUTH
SATHORN ROAD, THUNGMAHAMEK,
SATHORN,
BANGKOK 10120, THAILAND
TELEPHONE : [66]
2697-5100
FAX : [66]
2697-5199
E-MAIL ADDRESS : sale@orientalcopper.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1994
REGISTRATION NO. : 0105537003987 [Former : [2]
159/2537]
TAX ID NO. : 3011370391
CAPITAL REGISTERED : BHT. 420,000,000
CAPITAL PAID-UP : BHT. 320,000,000
SHAREHOLDER’S PROPORTION : THAI
: 75.00%
ITALIAN :
25.00%
FISCAL YEAR CLOSING
DATE : DECEMBER 31
LEGAL STATUS : PRIVATE
LIMITED COMPANY
EXECUTIVE : MS.
TUANG-HONG LEELAPRACHAKUL, THAI
PRESIDENT
NO.
OF STAFF : 250
LINES
OF BUSINESS : COPPER BUSBAR
& RELATED PRODUCTS
MANUFACTURER, DISTRIBUTOR
& EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMALLY BUSINESS ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was established
on January 11,
1994 as a
private limited company
under the name
style ORIENTAL COPPER
CO., LTD. by Thai
and Australian groups.
It was a
joint venture between World
Biz Trade Co., Ltd., Thailand and
G.E. Crane Holdings
Ltd., Australia, to
produce High Quality
Copper Busbar and
related products. It
is one of
the leading copper
busbar manufactures in
Asia.
The
subject is the
first manufacturing company
in Thailand and
South East Asia, which is able
to produce high
purity copper billet
99.98% up and
high conductivity copper
busbar with electrical
conductivity of IACS
101% [International Annealed
Copper Standard] and
Tin Electroplated material.
The
technical know-how for production has
been supplied by the
Crane Group Limited,
Australia. It currently
employs approximately 250 staff.
AWARD
Subject
achieved the ISO
9002, ISO 9001 and ISO 14001, as
well as TIS 408,
1982 certification by Bureau
Veritas Quality
International [B V Q I] of England
and Department of
Industrial Standards of
Thailand.
The
subject has been
granted the promotional
privilege by Board
of Investment [BOI] for
the production under
the certificated No. 1023/2537 and 1630/2540 on
May 13, 1994 and August
6, 1997, respectively.
Presently,
the major shareholders
are Ms. Tuang-hong Leelaprachakul, World
Biz Trade Co., Ltd.,
Thailand, and Mr. Umberto Comini, with
the investment around
41.52%, 33.48% and 25%
of the subject’s
shares respectively.
The
subject’s current registered
address is 27th Flr., Bangkok
Insurance / YWCA Building, 25 South
Sathorn Rd., Thungmahamek, Sathorn,
Bangkok 10120, and this is the company’s
current operation address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms. Tuang-hong Leelaprachakul |
[x] |
Thai |
59 |
|
Mr. Umberto Comini |
|
Italian |
74 |
|
Mr. Vatchakit Taechachunhakit |
|
Thai |
32 |
|
Mr. Vatchakarn Taechachunhakit |
|
Thai |
31 |
AUTHORIZED
PERSON
The mentioned director
[x] can jointly
sign with one
of the rest
directors on behalf
of the subject
with company’s affixed.
MANAGEMENT
Ms. Tuang-hong Leelaprachakul is
the President.
She is Thai
nationality with the
age of 59
years old.
Mr. Umberto Comini
is the Chief
Executive Officer.
He is Italian
nationality with the
age of 74
years old.
Mr. John Griffiths is
the Executive Vice
President.
He is British
nationality.
Mr. Pimol Tubsri
is the Factory
Manager.
He is Thai
nationality.
Ms. Thanyawan Kositthanakorn is
the Sales Manager
[Overseas].
She is Thai
nationality.
Ms. Thanaporn Khanthong
is the Sales
Manager [Local].
She is Thai
nationality.
BUSINESS
OPERATION
The subject is engaged in manufacturing wide range
of Copper Busbar
and Copper Fabricated
products for electric power generation,
electronic and non-electrical industries.
The products are
as follows:
- Copper
Busbar and Rods
- Tin-Plated
Copper Busbar
- Fabricated
Product
- Copper
Anodes
- Silver-Bearing
Copper
- Copper
Alloy
- Copper
Profiles
- Copper
Hollow Conductor
- Copper
Tape
PRODUCTION
CAPACITY
40,000 metric tons/year
MAJOR
BRAND
“OC-ETP”
IMPORT
[COUNTRIES]
50% of raw
materials, mainly high
purity copper is imported
from Italy, United
States of America,
Japan, Australia, Taiwan,
Republic of China,
India, Vietnam, Brazil,
France and Germany,
the remaining 50%
is purchased locally.
EXPORT
[COUNTRIES]
80%
of the products
is exported to
Italy, Germany, United
Kingdom, Malaysia, Taiwan,
Hong Kong, India,
Japan, Australia, Belgium,
Singapore, Republic of China,
Indonesia, Finland, Sweden,
Canada, U.S.A., Mexico, Argentina,
Yemen, Saudi Arabia,
Qatar, Brunei, Myanmar,
Norway, Netherlands, Switzerland,
Sudan, Egypt, U.A.E., Jordan, Austria,
Kuwait, Pakistan, Nepal, Bahrain, Bangladesh,
Macau, New Zealand
Philippines, Vietnam, France,
Spain and etc.
SALES
[LOCAL]
20% of its
products is sold
locally by wholesales
to dealers 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.
Exports are against
L/C at sight
or T/T.
BANKING
Kasikornbank Public Co.,
Ltd.
[Head Office : 1 Kasikorn Lane,
Rajburana Rd., Rajburana,
Bangkok 10140]
[Bangkapi Branch : 591
Sukhumvit Rd., Klongtoeynua,
Wattana, Bangkok]
Bangkok Bank Public
Co., Ltd.
United Overseas Bank
[Thai] Public Co.,
Ltd.
EMPLOYMENT
The subject employs
approximately 250 staff.
[office staff and
factory workers]
LOCATION
DETAILS
The premise is rented
for administrative office
at the heading
address. Premise is located
in commercial/residential area.
Factory
is located at Amata
Nakorn Industrial Estate,
700/45 Moo 6, T.
Klongtumru,
A. Muang,
Chonburi 20000, Thailand.
Tel : [66] 38
743-444-9, Fax :
[66] 38 213-256.
Factory Facilities
The factory is
completed with the
state of the
art technology, under-water
extrusion system, integrated
semi-automatic machinery fully
controlled by computerized
system.
COMMENT
The subject is one of a kind of
premium Copper Busbar producers
in Thailand. It is believed
that the subject would continue to
maintain its leading
position and play
a major role
in contributing to
the country’s further
industrial and economic
development.
The subject has long been
in the market
because of its reputation on
products quality, marketing
and sales strategy
as well as
well established a strong
fundamental management.
Throughout these past
20 years, the
subject has become
the region’s most outstanding
producer of copper
busbar while steadily
developing new products
that precisely meet the
diverse demands of
its customers.
It
business is solid
and growing steadily.
FINANCIAL
INFORMATION
The
capital was registered
at Bht.140,000,000 divided
into 140,000 shares of
Bht. 1,000
each.
The
capital was increased later
as follows:
Bht. 165,000,000
on November 30,
1995
Bht. 220,000,000
on June 30,
2004
Bht. 420,000,000
on May 4,
2009
The
latest registered capital
was increased to Bht. 420,000,000 divided into 420,000
shares of Bht. 1,000
each, with the current
capital paid-up at
Bht. 320,000,000 or 200,000
shares of Bht.
500 each and
220,000 shares of
Bht. 1,000 each.
THE SHAREHOLDERS LISTED WERE
[as
of August 27,
2014] at Bht.
320,000,000
of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Tuang-hong Leelaprachakul Nationality: Thai Address : 700/45
Moo 6, T. Klongtumru, A. Muang,
Chonburi |
174,397 |
41.52 |
|
World Biz Trade
Co., Ltd. Nationality: Thai Address : 25
South Sathorn Rd.,
Thungmahamek,
Sathorn, Bangkok 10120 |
140,600 |
33.48 |
|
Mr. Umberto Comini
Nationality: Italian Address : 3 F.T.
Marinetti, Milan, Italy |
105,000 |
25.00 |
|
Mr. Vatchapong Taechachunhakit Nationality: Thai Address : 4/30
Moo 7, Bangna,
Bangkok |
1 |
- |
|
Mr. Vatchakit Taechachunhakit Nationality: Thai Address : 4/30
Moo 7, Bangna,
Bangkok |
1 |
- |
|
Mr. Vatchakarn Taechachunhakit Nationality: Thai Address : 4/30
Moo 7, Bangna,
Bangkok |
1 |
- |
Total Shareholders : 6
Share Structure [as
at August 27,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
315,000 |
75.00 |
|
Foreign-Italian |
1 |
105,000 |
25.00 |
|
Total |
6 |
420,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Chaiyakorn Aunpitipongsa No.
3196
BALANCE
SHEET [BAHT]
The
latest financial figures
published for December
31, 2013, 2012 & 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
138,114,456.89 |
50,149,136.58 |
200,248,021.23 |
|
Trade Accounts & Other Receivable |
1,409,575,486.59 |
1,232,001,745.09 |
885,461,524.54 |
|
Inventories |
1,064,160,032.25 |
1,016,707,653.73 |
1,211,143,060.23 |
|
Other Current Assets
Value Added
Tax |
10,087,815.95 |
3,797,256.74 |
5,687,276.73 |
|
Spare Parts
& Supplies |
174,886,024.60 |
143,068,224.07 |
94,874,292.41 |
|
Others |
6,199,059.52 |
3,843,458.11 |
2,600,350.06 |
|
|
|
|
|
|
Total Current Assets
|
2,803,022,875.80 |
2,449,567,474.32 |
2,400,014,525.20 |
|
|
|
|
|
|
Fixed Assets |
1,606,875,518.14 |
1,640,197,308.05 |
1,597,204,647.13 |
|
Intangible Assets |
19,828,554.38 |
5,931,388.62 |
5,567,323.63 |
|
Foreclosed Assets |
9,238,815.33 |
9,228,189.68 |
9,218,825.36 |
|
Cash at Bank
pledged as a
Collateral |
- |
- |
330,000.00 |
|
Other Non-current Assets Deposit for
Golf Membership |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
Others |
32,799,951.10 |
32,653,887.10 |
30,559,088.00 |
|
Total Assets |
4,473,765,714.75 |
4,139,578,247.77 |
4,044,894,409.32 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Short-term Loan from
Bank |
2,664,587,407.47 |
2,383,203,121.12 |
2,402,969,175.63 |
|
Trade Accounts &
Other Payable |
329,802,941.57 |
196,241,758.37 |
173,759,856.15 |
|
Current Portion of Long-term Loan from Financial Institution |
90,000,000.00 |
90,000,000.00 |
154,000,000.00 |
|
Long-term Lease
Contract Liabilities |
2,616,871.91 |
3,595,042.91 |
3,317,091.43 |
|
Total Current Portion of
Liabilities |
92,616,871.91 |
93,595,042.91 |
157,317,091.43 |
|
Accrued Income Tax |
327,000.24 |
385,509.47 |
1,566,627.11 |
|
Other Current Liabilities
|
|
|
|
|
Accrued Bonus |
6,730,530.00 |
12,474,280.00 |
17,239,752.00 |
|
Others |
12,306,781.64 |
10,970,454.34 |
13,647,469.48 |
|
|
|
|
|
|
Total Current Liabilities |
3,106,371,532.83 |
2,696,870,166.21 |
2,766,499,971.80 |
|
Long-term Loan from Financial Institution, net |
200,000,000.00 |
290,000,000.00 |
192,000,000.00 |
|
Long-term Lease Contract Liabilities, net |
9,830,737.24 |
11,529,250.20 |
7,647,269.62 |
|
Reserve for Employee
Benefit |
13,432,100.27 |
14,052,999.26 |
13,290,469.37 |
|
Other Non-current Liabilities |
10,603,069.68 |
9,557,352.25 |
9,052,301.74 |
|
Total Liabilities |
3,340,237,440.02 |
3,022,009,767.92 |
2,988,490,012.53 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value Authorized &
issued share capital
420,000 shares |
420,000,000.00 |
420,000,000.00 |
420,000,000.00 |
|
|
|
|
|
|
Capital Paid |
320,000,000.00 |
320,000,000.00 |
320,000,000.00 |
|
Retained Earning |
|
|
|
|
Appropriated for Statutory Reserve |
22,000,000.00 |
22,000,000.00 |
22,000,000.00 |
|
Unappropriated |
791,528,274.73 |
775,568,479.85 |
714,404,396.79 |
|
Total Shareholders' Equity |
1,133,528,274.73 |
1,117,568,479.85 |
1,056,404,396.79 |
|
Total Liabilities &
Shareholders' Equity |
4,473,765,714.75 |
4,139,578,247.77 |
4,044,894,409.32 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
8,351,751,551.82 |
8,513,790,213.53 |
7,687,598,420.30 |
|
Other Income |
23,153,877.34 |
117,857,392.10 |
36,118,891.00 |
|
Total Revenues |
8,374,905,429.16 |
8,631,647,605.63 |
7,723,717,311.30 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
7,890,696,246.28 |
8,159,668,241.89 |
7,259,815,953.42 |
|
Selling Expenses |
134,833,070.65 |
125,750,226.87 |
129,104,140.64 |
|
Administrative Expenses |
192,748,514.76 |
186,439,931.62 |
155,851,524.87 |
|
Loss on Exchange Rate |
55,292,544.95 |
- |
17,543,233.95 |
|
Total Expenses |
8,273,570,376.64 |
8,471,858,400.38 |
7,562,314,852.88 |
|
|
|
|
|
|
Profit before Finance
Cost & Income Tax |
101,335,052.52 |
159,789,205.25 |
161,402,458.42 |
|
Finance Cost |
[81,738,102.54] |
[91,566,706.66] |
[64,750,678.37] |
|
Profit before Income Tax
|
19,596,949.98 |
68,222,498.59 |
96,651,780.05 |
|
Income Tax |
[3,637,155.10] |
[7,058,415.53] |
[17,841,030.36] |
|
|
|
|
|
|
Net Profit / [Loss] |
15,959,794.88 |
61,164,083.06 |
78,810,749.69 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.90 |
0.91 |
0.87 |
|
QUICK RATIO |
TIMES |
0.50 |
0.48 |
0.39 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.20 |
5.19 |
4.81 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.87 |
2.06 |
1.90 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
49.22 |
45.48 |
60.89 |
|
INVENTORY TURNOVER |
TIMES |
7.41 |
8.03 |
5.99 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
61.60 |
52.82 |
42.04 |
|
RECEIVABLES TURNOVER |
TIMES |
5.93 |
6.91 |
8.68 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
15.26 |
8.78 |
8.74 |
|
CASH CONVERSION CYCLE |
DAYS |
95.57 |
89.52 |
94.20 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
94.48 |
95.84 |
94.44 |
|
SELLING & ADMINISTRATION |
% |
3.92 |
3.67 |
3.71 |
|
INTEREST |
% |
0.98 |
1.08 |
0.84 |
|
GROSS PROFIT MARGIN |
% |
5.80 |
5.54 |
6.03 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.21 |
1.88 |
2.10 |
|
NET PROFIT MARGIN |
% |
0.19 |
0.72 |
1.03 |
|
RETURN ON EQUITY |
% |
1.41 |
5.47 |
7.46 |
|
RETURN ON ASSET |
% |
0.36 |
1.48 |
1.95 |
|
EARNING PER SHARE |
BAHT |
49.87 |
191.14 |
246.28 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.75 |
0.73 |
0.74 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.95 |
2.70 |
2.83 |
|
TIME INTEREST EARNED |
TIMES |
1.24 |
1.75 |
2.49 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(1.90) |
10.75 |
|
|
OPERATING PROFIT |
% |
(36.58) |
(1.00) |
|
|
NET PROFIT |
% |
(73.91) |
(22.39) |
|
|
FIXED ASSETS |
% |
(2.03) |
2.69 |
|
|
TOTAL ASSETS |
% |
8.07 |
2.34 |
|
ANNUAL
GROWTH : RISKY
An annual sales growth is -1.9%. Turnover has decreased from THB
PROFITABILITY
: ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
5.80 |
Impressive |
Industrial
Average |
0.47 |
|
Net Profit Margin |
0.19 |
Deteriorated |
Industrial
Average |
0.95 |
|
Return on Assets |
0.36 |
Deteriorated |
Industrial
Average |
1.51 |
|
Return on Equity |
1.41 |
Deteriorated |
Industrial
Average |
3.65 |
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 5.8%. 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 0.19%.
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 0.36%.
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 1.41%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY
: RISKY
LIQUIDITY
RATIO
|
Current Ratio |
0.90 |
Risky |
Industrial
Average |
1.36 |
|
Quick Ratio |
0.50 |
|
|
|
|
Cash Conversion Cycle |
95.57 |
|
|
|
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 0.9 times in 2013, decreased from 0.91 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 96 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE
: ACCEPTABLE
LEVERAGE
RATIO
|
Debt Ratio |
0.75 |
Acceptable |
Industrial
Average |
0.56 |
|
Debt to Equity Ratio |
2.95 |
Risky |
Industrial
Average |
1.27 |
|
Times Interest Earned |
1.24 |
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 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 1.24 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 0.75 greater than 0.5, most of the
company's assets are financed through debt.
Trend of the average
competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Stable
ACTIVITY
: EXCELLENT
ACTIVITY
RATIO
|
Fixed Assets Turnover |
5.20 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.87 |
Impressive |
Industrial
Average |
1.60 |
|
Inventory Conversion Period |
49.22 |
|
|
|
|
Inventory Turnover |
7.41 |
Impressive |
Industrial
Average |
5.46 |
|
Receivables Conversion Period |
61.60 |
|
|
|
|
Receivables Turnover |
5.93 |
Impressive |
Industrial
Average |
4.14 |
|
Payables Conversion Period |
15.26 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.93 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 45 days at the
end of 2012 to 49 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 8.03 times in year 2012 to 7.41 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.87 times and 2.06
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 Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.76 |
|
|
1 |
Rs.97.79 |
|
Euro |
1 |
Rs.69.90 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
DPT |
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.