MIRA INFORM REPORT
|
Report No. : |
347992 |
|
Report Date : |
03.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
OCEAN GLASS
PUBLIC COMPANY LIMITED |
|
|
|
|
Formerly Known As : |
OCEAN GLASS CO., LTD |
|
|
|
|
Registered Office : |
34th Floor, Ocean Tower Ii, 75/88-91 Sukhumvit 19 Road, Klongtoey Nua, Wattana, Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
30.06.2015 |
|
|
|
|
Date of Incorporation : |
21.09.1979 |
|
|
|
|
Com. Reg. No.: |
0107536000153 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor and Exporter of Glasswares. |
|
|
|
|
No. of Employees : |
700 |
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 |
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|
|
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Thailand |
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, and generally pro-investment policies Thailand has historically had a
strong economy due in part to competitive 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 2-4 million migrant
workers from neighboring countries, and faces labor shortages. Following the
May 2014 coup d'etat, 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
OCEAN GLASS PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 34th FLOOR, OCEAN
TOWER II, 75/88-91
SUKHUMVIT 19
ROAD, KLONGTOEY NUA,
WATTANA, BANGKOK
10110, THAILAND
TELEPHONE : [66] 2661-6556
FAX :
[66] 2661-6550
E-MAIL
ADDRESS : contact@oceanglass.com
ir@oceanglass.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1979
REGISTRATION
NO. : 0107536000153 [Former :
BOR MOR JOR. 89]
CAPITAL REGISTERED : BHT. 500,000,000
CAPITAL PAID-UP : BHT.
213,307,150
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
KIRATI ASSAKUL, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 700
LINES
OF BUSINESS : GLASSWARES
MANUFACTURER,
DISTRIBUTOR AND EXPORTER
CORPORATE
PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was established on September 21, 1979 originally
as a private limited
company under the name style “Ocean Glass
Co., Ltd.” by
Thai groups, in order to manufacture wide
range of glassware
products with the
promotional privileges granted by
the Board of
Investment [BOI].
On
March 11, 1993,
subject’s status was
converted to a
public limited company
under the name OCEAN GLASS
PUBLIC COMPANY LIMITED,
and was listed
on the Stock
Exchange of Thailand [SET] on
August 19, 1993,
under the symbol
name “OGC”. It currently
employs approximately 700 staff.
Subject
also achieved the
ISO 9001:2000 certification for
the quality management
system.
In
2004, the whole
business of Ocean
Sasaki Glass Co.,
Ltd., the subsidiary
has been transferred
to the subject.
The subject’s registered address is 34th Floor, Ocean
Tower II, 75/88-91 Sukhumvit 19
Rd., Klongtoey Nua,
Wattana, Bangkok 10110,
and this is
the subject’s current
operation address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kirati Assakul |
[x] |
Thai |
57 |
|
Mr. Naputt Assakul |
[x] |
Thai |
39 |
|
Mr. Tatchapol Poshyanonda |
|
Thai |
50 |
|
Mr. Chatchawin Charoenrajapark |
|
Thai |
55 |
|
Mr. Chakri Chanruangvanich |
[x] |
Thai |
59 |
|
Mr. Chaipranin Visudhipol |
|
Thai |
56 |
|
Mr. Woragan Xuto |
|
Thai |
62 |
|
Mr. Matthew Kichodhan |
|
Canadian |
49 |
AUTHORIZED
PERSON
Two of the
above directors [x]
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Name Position
Mr. Kirati Assakul Managing Director
Mr. Silparat Watthanakasetr Executive Director
[Customer Channel Development]
Ms. Jariya Saengchaiya Executive Director [Manufacturing]
Ms. Lalitpat Wanichsermkul Executive Director [Finance]
Mr. Ravis Ingkanisorn Executive Director
[Supply Chain]
Mrs. Yada Andaris Executive Director
[Human Resources]
BUSINESS
OPERATIONS
The subject is
engaged in manufacturing
and marketing wide
range of glassware
products, which can
be divided into
3 main products
as the followings:
-
Blownware : water
glass, jar, and
other glassware
-
Pressware : plate,
bowl, saucer, mug,
ashtray and etc.
-
Stemware :
wine glass, champagne
glass, brandy glass and
etc.
BRAND NAMES
“OCEAN” “LUCARIS” and
“OCEAN PROFESSIONAL”
PRODUCTION
111 million pieces
per year
PURCHASE
Raw materials are
purchased from suppliers
and agents both
domestic and overseas,
such as Japan,
Taiwan, Republic of
China, Hong Kong,
Sweden, Germany, France
and etc.
DISTRIBUTION
The subject’s customers
are divided into
3 main target
groups: food service
market, retail market [B2B]
and OEM market.
SALES [LOCAL]
30% of the
products is sold
locally by wholesale
to dealers nationwide
and by retail
through the company’s
sales force and
outside agents.
EXPORT
70%
of the products
is exported to
over 70 worldwide countries,
such as Australia,
Republic of China, Vietnam, Myanmar, Cambodia, Indonesia, Philippines,
Pakistan, Singapore, Iran, India,
New Zealand, Hungary,
Japan, Laos, Bangladesh,
Nepal, Malaysia, U.S.A.,
Nigeria, Egypt, Korea,
Taiwan, Hong Kong, Sri
Lanka and etc.
MAJOR
CUSTOMER
Ocean Glass Trading
[Shanghai] Co., Ltd.
REVENUE
STRUCTURE
[Company and Subsidiary]
|
|
2014 Million baht |
2013 Million baht |
Change [%] |
|
|
|
|
|
|
Revenue: |
|
|
|
|
Revenue from Sales |
2,077.36 |
1,979.92 |
4.92 |
|
Foreign Exchange Gain
|
3.69 |
[7.92] |
146.61 |
|
Other Income |
9.51 |
11.10 |
[14.30] |
|
|
|
|
|
|
Total Revenue |
2,090.56 |
21,983.10 |
5.42 |
Revenue
from the sales
stated Baht 2,008.67
Million increased of
Baht 0.32 Million,
or increased 0.02%
from previous year.
|
|
2014 Million baht |
2013 Million baht |
Change [%] |
|
|
|
|
|
|
Sales |
|
|
|
|
- Domestic |
550.75 |
562.05 |
[2.01] |
|
- Overseas |
1,526.61 |
1,417.87 |
7.67 |
|
Total Revenue from Sales |
2,077.36 |
1,979.92 |
4.92 |
SUBSIDIARY AND AFFILIATED COMPANIES
Ocean Glass Trading
[Shanghai] Co., Ltd.
Business Type : Manufacturer of
glassware product in
Republic of China
Ocean Glass Trading
India Private Limited
Business Type : Manufacturer of
glassware product in
India
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 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.
Siam Commercial Bank
Public Co., Ltd.
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
700 staff comprising
office, sale staff
and factory workers.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Factory
is located at
365-365/1 Moo 4, Bangpoo Industrial
Estate, T. Praksa,
A. Muang, Samutprakarn
10280.
Showrooms/Branches:
Ocean
Shop :
-
175 Sukhumvit 21
Rd., Klongtoey Nua,
Wattana, Bangkok 10110.
Tel. [66] 2661-6556 Ext.
449 Fax: [66]
2258-0484
Showroom
[Khon Kaen] :
-
381/43 Mitraparp Rd.,
A. Muang, Khon
Kaen 40000
Tel. [66] 43
228-149 Fax :
[66] 43 228-159
Showroom
[Phnom Penh] :
- #75
Eo, Charles de
Gaulle Blvd [217],
Sangkat Orussey 3,
Khan 7 Makara,
Phnom Penh, Cambodia
Ocean
Glass Representative
-
Unit 2A, level
2 Broadway C,
150 Nguyen Luong
Bang St. Dist
7, HCMC, Vietnam
Vietnam
Branch
-
184 Ba Thang
Hai Street, Ward
12 District 10,
Ho Chi Minh
City, Vietnam
COMMENT
In
2014 the company
and its subsidiary
had maintained a
growth rate similarly
to the previous
year. Its business
expansion plan was
in placed. However,
under the economic
and business circumstances, glassware
and tableware have
steadily grown in
recent year, while the
prices continue to
have an impact
due to the appreciation
of the baht.
Moreover, European and American
manufacturers also moved
their productions into
China and United
Arab Emirates.
FINANCIAL
INFORMATION
The capital
was registered at
Bht. 100,000,000 divided into 1,000,000 shares
of Bht. 100
each.
The
capital was increased
later as following:
Bht. 150,000,000
on June 23,
1987
Bht. 165,000,000
on April 27,
1992
Bht. 500,000,000
on March 11,
1993
The
latest registered capital
was increased to
Bht. 500,000,000 divided into
50,000,000 shares of
Bht. 10 each, with
a current capital
paid-up at Bht. 213,307,150.
THE
SHAREHOLDERS LISTED WERE
[As at
March 11, 2015]
at Bht. 213,307,150 of
capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ocean Holding Co.,
Ltd. |
7,000,000 |
32.82 |
|
Mrs. Sumalee Assakul |
1,552,838 |
7.28 |
|
Mr. Kirati Assakul |
1,477,458 |
6.93 |
|
Mr. Veerawuth Assakul |
1,477,378 |
6.93 |
|
Mrs. Nusara Banyatpiyapoj |
1,207,866 |
5.66 |
|
Mr. Chamroen Rungwatanaseth |
650,000 |
3.05 |
|
Toyo-Sasaki Glass Co.,
Ltd. |
630,715 |
2.96 |
|
Mr. Vithit Pongpirodom |
531,700 |
2.49 |
|
Mr. Viroj Piriyathamwong |
495,500 |
2.32 |
|
Mr. Niti Osathanugrah |
346,800 |
1.63 |
|
Mr. Surapol Assakul |
325,282 |
1.52 |
|
Mrs. Ratchadaporn Chaiyapruk |
254,300 |
1.19 |
|
Other Shareholders |
5,380,878 |
25.22 |
Total Shareholders :
1,101
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Methee Ratanasrimetha No.
3425
BALANCE
SHEET [BAHT]
The latest financial figures published
as at December
31, 2014, 2013
& 2012 were:
ASSETS
[Thousand Baht]
|
Current Assets |
2014 |
2013 [Restated] |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
91,050 |
247,327 |
34,536 |
|
Trade Accounts &
Other Receivable |
251,820 |
220,880 |
200,179 |
|
Inventories |
978,649 |
1,061,795 |
940,489 |
|
Value Added Tax Receivables |
63,890 |
20,968 |
- |
|
Other Current Assets
|
4,541 |
3,923 |
42,921 |
|
|
|
|
|
|
Total Current Assets
|
1,389,950 |
1,554,893 |
1,218,125 |
|
Investments in Subsidiaries |
5,900 |
5,636 |
5,636 |
|
Property, Plant and Equipment |
1,744,526 |
1,798,018 |
1,888,923 |
|
Intangible Assets |
19,847 |
23,911 |
- |
|
Other Non - current Assets |
3,466 |
3,440 |
34,309 |
|
Total Assets |
3,163,689 |
3,385,898 |
3,146,993 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
[Thousand Baht]
|
Current
Liabilities |
2014 |
2013 [Restated] |
2012 |
|
|
|
|
|
|
Short-term Loan from Financial Institutions |
215,896 |
507,281 |
400,000 |
|
Trade Accounts & Other
Payable |
298,611 |
333,905 |
232,630 |
|
Current Portion of
Long-term Borrowings from Financial
Institutions |
160,000 |
70,500 |
31,200 |
|
Other Current Liabilities |
3,466 |
2,445 |
124,698 |
|
|
|
|
|
|
Total Current Liabilities |
677,973 |
914,131 |
788,528 |
|
Long-term Borrowings from Financial Institutions |
772,000 |
929,700 |
750,200 |
|
Deferred Tax Liabilities |
69,002 |
34,077 |
84,538 |
|
Employee Benefits Obligation |
87,201 |
83,364 |
272 |
|
Total Liabilities |
1,606,176 |
1,961,272 |
1,623,538 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share Capital |
|
|
|
|
Authorised share capital Ordinary shares,
50,000,000 shares of par Baht 10 each |
500,000 |
500,000 |
500,000 |
|
Issued and paid-up share capital |
|
|
|
|
Authorised share capital Ordinary shares,
21,330,715 shares of par Baht 10 each |
213,307 |
213,307 |
213,307 |
|
Premium on Share Capital |
302,807 |
302,807 |
302,807 |
|
Retained Earnings: Appropriated for Statutory Reserve |
50,000 |
50,000 |
50,000 |
|
Unappropriated |
638,971 |
585,546 |
616,134 |
|
Other Components of Equity |
352,428 |
272,966 |
341,207 |
|
Total Shareholders' Equity |
1,557,513 |
1,424,626 |
1,523,455 |
|
Total Liabilities & Shareholders' Equity |
3,163,689 |
3,385,898 |
3,146,993 |
PROFIT
& LOSS ACCOUNT
[Thousand Baht]
|
Revenue |
2014 |
2013 [Restated] |
2012 |
|
|
|
|
|
|
Sales Income |
2,067,570 |
1,985,055 |
1,998,640 |
|
Foreign Exchange Gain [Loss] |
5,557 |
[8,049] |
17,393 |
|
Other Income |
9,507 |
11,095 |
22,776 |
|
Total Revenues |
2,082,634 |
1,988,101 |
2,038,809 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,332,019 |
1,451,526 |
1,403,947 |
|
Selling Expenses |
345,080 |
357,203 |
369,397 |
|
Administrative Expenses |
101,398 |
99,638 |
138,828 |
|
Shutdown Expenses |
185,282 |
81,349 |
144,789 |
|
Finance Costs |
50,372 |
52,046 |
54,224 |
|
Total Expenses |
2,014,151 |
2,041,762 |
2,111,185 |
|
Profit / [Loss] before Income
Tax |
68,483 |
53,661 |
[72,376] |
|
Income Tax |
[15,058] |
[8,806] |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
53,425 |
[44,855] |
[72,376] |
BALANCE
SHEET [BAHT]
The six-month financial figures published
as at June
30, 2015 was :
[Unaudited]
ASSETS
[Thousand Baht]
|
Current Assets |
2015 |
|
|
|
|
Cash and Cash Equivalents |
49,512 |
|
Trade Accounts &
Other Receivable |
167,627 |
|
Inventories |
1,027,664 |
|
Value Added Tax Receivables |
76,128 |
|
Other Current Assets
|
4,460 |
|
|
|
|
Total Current Assets
|
1,325,391 |
|
Investments in Subsidiaries |
5,900 |
|
Property, Plant and Equipment |
1,752,653 |
|
Intangible Assets |
18,363 |
|
Other Non-current Assets |
3,174 |
|
Total Assets |
3,105,481 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
[Thousand Baht]
|
Current
Liabilities |
2015 |
|
|
|
|
Short-term Loan from Financial
Institutions |
298,743 |
|
Trade Accounts & Other
Payables |
247,838 |
|
Current Portion of
Long-term Borrowings |
178,000 |
|
Other Current Liabilities |
2,351 |
|
|
|
|
Total Current Liabilities |
726,932 |
|
Long-term Borrowings |
674,000 |
|
Deferred Tax Liabilities |
71,250 |
|
Employee Benefits Obligations |
93,029 |
|
Total Liabilities |
1,565,211 |
|
|
|
|
Shareholders' Equity |
|
|
Share Capital |
|
|
Authorised share capital Ordinary shares,
50,000,000 shares of
par Baht 10 each |
500,000 |
|
Issued and paid-up share capital |
|
|
Authorised share capital Ordinary shares,
21,330,715 shares of par Baht 10 each |
213,307 |
|
Premium on Share Capital |
302,807 |
|
Retained Earnings: Appropriated for statutory reserve |
50,000 |
|
Unappropriated |
621,728 |
|
Other Components of Equity |
352,428 |
|
Total Shareholders' Equity |
1,540,270 |
|
Total Liabilities &
Shareholders' Equity |
3,105,481 |
PROFIT
& LOSS ACCOUNT
For the six-month period ended June
30, 2015:
[Thousand Baht]
|
Revenue |
2015 |
|
|
|
|
Sales Income |
821,635 |
|
Foreign Exchange Gain [Loss] |
(563) |
|
Other Income |
1,591 |
|
Total Revenues |
822,663 |
|
Expenses |
|
|
|
|
|
Cost of Goods
Sold |
488,907 |
|
Selling Expenses |
152,941 |
|
Administrative Expenses |
49,494 |
|
Shutdown Expenses |
100,879 |
|
Finance Costs |
21,973 |
|
Total Expenses |
814,194 |
|
Profit / [Loss] before Income
Tax |
8,469 |
|
Income Tax |
[2,248] |
|
|
|
|
Net Profit / [Loss] |
6,221 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.05 |
1.70 |
1.54 |
|
QUICK RATIO |
TIMES |
0.60 |
0.54 |
0.30 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.19 |
1.10 |
1.06 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.65 |
0.59 |
0.64 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
268.17 |
267.00 |
244.51 |
|
INVENTORY TURNOVER |
TIMES |
1.36 |
1.37 |
1.49 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
44.46 |
40.61 |
36.56 |
|
RECEIVABLES TURNOVER |
TIMES |
8.21 |
8.99 |
9.98 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
81.83 |
83.96 |
60.48 |
|
CASH CONVERSION CYCLE |
DAYS |
230.80 |
223.65 |
220.59 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
64.42 |
73.12 |
70.25 |
|
SELLING & ADMINISTRATION |
% |
21.59 |
23.01 |
25.43 |
|
INTEREST |
% |
2.44 |
2.62 |
2.71 |
|
GROSS PROFIT MARGIN |
% |
36.30 |
27.03 |
31.76 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.31 |
(2.70) |
(3.62) |
|
NET PROFIT MARGIN |
% |
2.58 |
(2.26) |
(3.62) |
|
RETURN ON EQUITY |
% |
3.43 |
(3.15) |
(4.75) |
|
RETURN ON ASSET |
% |
1.69 |
(1.32) |
(2.30) |
|
EARNING PER SHARE |
BAHT |
2.50 |
(2.10) |
(3.39) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.51 |
0.58 |
0.52 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.03 |
1.38 |
1.07 |
|
TIME INTEREST EARNED |
TIMES |
1.36 |
(1.03) |
(1.33) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
4.16 |
(0.68) |
|
|
OPERATING PROFIT |
% |
(227.62) |
(25.86) |
|
|
NET PROFIT |
% |
219.11 |
38.03 |
|
|
FIXED ASSETS |
% |
(2.98) |
(4.81) |
|
|
TOTAL ASSETS |
% |
(6.56) |
7.59 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is 4.16%. Turnover has increased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
36.30 |
Impressive |
Industrial Average |
4.71 |
|
Net Profit Margin |
2.58 |
Acceptable |
Industrial Average |
4.47 |
|
Return on Assets |
1.69 |
Acceptable |
Industrial Average |
3.10 |
|
Return on Equity |
3.43 |
Acceptable |
Industrial Average |
5.71 |
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
36.3%. When compared with the industry average, the ratio of the company
was higher, indicated that company was more profitable than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales will
erase profits and result in a net loss. The company's figure is 2.58%. When
compared with the industry average, the ratio of the company was lower.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. When compared with the
industry average, it was lower, the
company's figure is 1.69%.
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 3.43%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
2.05 |
Impressive |
Industrial
Average |
1.20 |
|
Quick Ratio |
0.60 |
|
|
|
|
Cash Conversion Cycle |
230.80 |
|
|
|
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 2.05 times in 2014, increased from 1.7 times, then it is generally
considered to have good short-term financial strength. When compared with the
industry average, the ratio of the company was higher, indicated that company
was an efficient operator in a dominant position within its industry.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 0.6 times in 2014,
increased from 0.54 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 231 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.51 |
Impressive |
Industrial
Average |
0.52 |
|
Debt to Equity Ratio |
1.03 |
Acceptable |
Industrial
Average |
1.07 |
|
Times Interest Earned |
1.36 |
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 1.36 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 0.51 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
1.19 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.65 |
Satisfactory |
Industrial
Average |
0.70 |
|
Inventory Conversion Period |
268.17 |
|
|
|
|
Inventory Turnover |
1.36 |
Deteriorated |
Industrial
Average |
4.09 |
|
Receivables Conversion Period |
44.46 |
|
|
|
|
Receivables Turnover |
8.21 |
Impressive |
Industrial
Average |
2.62 |
|
Payables Conversion Period |
81.83 |
|
|
|
The company's Account Receivable Ratio is calculated as 8.21 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 267 days at the
end of 2013 to 268 days at the end of 2014. This represents a negative trend.
And Inventory turnover has decreased from 1.37 times in year 2013 to 1.36 times
in year 2014.
The company's Total Asset Turnover is calculated as 0.65 times and 0.59
times in 2014 and 2013 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Stable
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.45 |
|
|
1 |
Rs.101.06 |
|
Euro |
1 |
Rs.72.22 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
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.