MIRA INFORM REPORT
|
Report No. : |
348122 |
|
Report Date : |
06.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
ASIA METAL PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
55, 55/1 Moo 2, Soi Wat Namdaeng,
Srinakarin Road, T. Bangkaew, A.
Bangplee, Samutprakarn 10540 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
09.03.1993 |
|
|
|
|
Com. Reg. No.: |
0107547000176 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Importer & Distributor of Steel Products. |
|
|
|
|
No. of Employees : |
350 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Thailand |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
THAILAND - ECONOMIC
OVERVIEW
With a well-developed infrastructure, a free-enterprise
economy, 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 and address
ASIA
METAL PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 55,
55/1 MOO 2,
SOI WAT NAMDAENG,
SRINAKARIN ROAD,
T. BANGKAEW,
A. BANGPLEE, SAMUTPRAKARN
10540,
THAILAND
TELEPHONE : [66] 2383-4100
FAX : [66] 2383-4101-2
E-MAIL
ADDRESS : info@asiametal.co.th
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1993
REGISTERED NO. : 0107547000176
TAX ID NO. : 3011256305
CAPITAL
REGISTERED : BHT.
549,973,800
CAPITAL
PAID-UP : BHT.
480,096,277
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
CHUSAK YONGVONGPHAIBOON, THAI
MANAGING DIRECTOR
NO. OF
STAFF : 350
LINES OF
BUSINESS : STEEL PRODUCTS
IMPORTER & DISTRIBUTOR
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was
established on March
9, 1993 as
a private limited
company under the
registered name ASIA
METAL CO., LTD. by Thai
groups, to import
and distribute steel
products. On March
9, 2004, its
status was converted
to a public
limited company under
the name ASIA
METAL PUBLIC COMPANY
LIMITED, and it
was listed on
the Stock Exchange of
Thailand on August
13, 2004. It
currently employs 350
staff.
It also achieved
the standard ISO 9001 : 2008 and TS
16949 certification quality
management system.
The subject’s registered
address is 55,
55/1 Moo 2, Soi
Wat Namdaeng, Srinakarin
Rd., T. Bangkaew, A. Bangplee,
Samutprakarn 10540, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Virachai Suteerachai |
|
Thai |
65 |
|
Mr. Piboonsak Arthabowonpisan |
|
Thai |
63 |
|
Mr. Chusak
Yongvongphaiboon : Chairman |
[x] |
Thai |
53 |
|
Mrs. Penjan Yongvongphaiboon |
[x] |
Thai |
50 |
|
Sub-Lt. Suree Buranathanit |
|
Thai |
81 |
|
Mrs. Taisika Phraisangob |
|
Thai |
66 |
|
Ms. Chananya Yongvongphaiboon |
[x] |
Thai |
22 |
AUTHORIZED
PERSON
Any two of the
above directors [x] can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Chusak
Yongvongphaiboon is the
Managing Director.
He is Thai
nationality with the
age of 53
years old.
Mrs. Penjan Yongvongphaiboon is
the Deputy Managing
Director.
She is Thai
nationality with the
age of 50 years
old.
Mr. Tanakorn
Ritthibunlue is the
Accounting and Finance
Director.
He is Thai
nationality with the
age of 48
years old.
Mr.
Chidchanok Tomawong is
the Marketing and
Factory Director.
He is Thai
nationality.
BUSINESS
OPERATIONS
The
subject is engaged
in operating complete
range of integrated
steel service centers,
to import, distribute
and service of
steel coil, hot
rolled and cold
rolled, galvanized steel
[GI], aluminum zinc coated
steel [GL], color
coated steel and
processed steel products,
such as steel
sheet, slitting coil,
steel pipe with
diameter of 1 inch
[25 mm.] to 6
inches [175 mm.] c-shaped steel
structure and service
delivery to the customers.
PRODUCTION
CAPACITY
603,782
tons per annum comprising:
-
Steel Sheet : 280,000
tons per annum
-
Steel Slit Coil : 34,000
tons per annum
-
Steel Pipes : 199,782
tons per annum
-
Lip Channel Steel : 90,000
tons per annum
PURCHASE
80% of steel
products are purchased
from local suppliers,
20% of the
rest and raw
material are imported
from Japan, Korea,
Republic of China,
India, Australia, Germany
and Vietnam.
MAJOR SUPPLIERS
Sahaviriya Steel Industries
Public Company Limited : Thailand
G Steel Public
Company Limited : Thailand
G J Steel Public
Company Limited : Thailand
SALES [LOCAL]
100% of products is
sold and serviced
locally to various
industries, such as construction, furniture,
electrical equipment, automobile
and etc.
REVENUE
STRUCTURE
[Company and
subsidiaries]
|
|
2013 |
2014 |
||
|
|
Million baht |
% |
Million baht |
% |
|
Steel Service Centers |
|
|
|
|
|
- Steel Providing
Service |
1,613.44 |
29.75 |
1,291.99 |
27.02 |
|
- Steel Cutting
Service |
- |
- |
3.59 |
0.08 |
|
Total Steel Service
Center |
1,613.44 |
29.75 |
1,295.58 |
27.10 |
|
|
|
|
|
|
|
Processed Steel Products |
|
|
|
|
|
- Steel Sheet |
889.36 |
16.40 |
734.67 |
15.36 |
|
- Steel Slitting
Coil |
368.52 |
6.80 |
417.37 |
8.73 |
|
- Steel Pipes |
2,017.77 |
37.21 |
1,935.43 |
40.47 |
|
- Light Lips
Channels |
482.96 |
8.91 |
371.58 |
7.77 |
|
Total Processed Steel
Products |
3,758.61 |
69.31 |
3,459.05 |
72.33 |
|
|
|
|
|
|
|
Others |
50.94 |
0.94 |
27.25 |
0.57 |
|
|
|
|
|
|
|
Total Revenue |
5,422.99 |
100.00 |
4,781.88 |
100.00 |
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.
SUBSIDIARY
AND ASSOCIATED COMPANIES
Asia Metal
Fabrication Co., Ltd.
Business Type : Manufacturer &
distributor of round
steel and square
steel pipes
Investment :
The subject holds
55% of total
shares.
S T C Steel Co., Ltd.
Business Type : Provider
of design and
manufacture steel structure
and factory
construction service.
Investment :
The subject holds
99.99% of total
shares.
Vientiane Bonded
Warehouse Co., Ltd.
Business Type : Warehouse
service in Laos
Investment :
The subject holds
40% of total
shares.
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
Bangkok Bank
Public Co., Ltd.
[Head Office :
333 Silom Rd., Silom,
Bangrak, Bangkok 10500]
EMPLOYMENT
The subject currently
employs 350 staff. [office
and sales staff]
LOCATION
DETAILS
The premise is owned for administrative office,
factory I and service center at
the heading address.
Premise is located
in an industrial
area.
Branch I, factory II and
service center are
located at 90/1
Moo 10, Chachoengsao-Sattahip Rd.,
T. Sraseeleum, A.
Panusnikom, Chonburi 20140.
Branch II is
located at 15th Floor,
Asia Center Building,
173/13 South Sathorn
Road, Thungmahamek, Sathorn,
Bangkok 10120.
COMMENT
Domestic steel consumption
has dramatically slowdown
since 2013. Low
productivity and high costs
cut into incomes in
the previous year,
as well as slow
exports of industrial
products and sluggish
consumption due mainly
to country’s economic
sluggish and slow
improvement of global
economy.
In 2015 the subject’s
business performance remains
slow, while sales
in overseas are
also gloomy due
to the constraints
on export expansion.
FINANCIAL
INFORMATION
The capital was
registered at Bht.
30,000,000 divided into
300,000 shares of
Bht. 100 each.
The capital was
increased later as
follows:
Bht. 100,000,000
on May 14,
2001
Bht. 200,000,000
on August 9,
2004
Bht. 399,973,800
on July 26,
2006
Bht. 549,973,800
on March 28,
2007
The latest registered
capital was increased
to Bht. 549,973,800 divided
into 549,973,800 shares
of Bht. 1 each with
Bht. 480,096,277 paid-up.
THE
SHAREHOLDERS LISTED WERE
[as
at April 10,
2015] at Bht.
479,937,265 of capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Chusak
Yongvongphaiboon Nationality: Thai |
76,700,000 |
15.98 |
|
Lady Pattama
Leesawadtrakul Nationality: Thai |
69,000,000 |
14.37 |
|
Mr. Virachai
Suteerachai Nationality: Thai |
46,432,400 |
9.67 |
|
Ms. Penjan Yothin-upamai Nationality: Thai |
40,000,000 |
8.34 |
|
Mr. Wint
Suteerachai Nationality: Thai |
39,900,000 |
8.32 |
|
Ms. Peerada Yongvongphaiboon Nationality: Thai |
30,842,500 |
6.42 |
|
Ms.
Chananya Yongvongphaiboon Nationality
: Thai |
21,541,000 |
4.49 |
|
Mr.
Chanathip Trivuth Nationality: Thai |
20,000,000 |
4.17 |
|
Ms. Orawan Pongthanyalak Nationality: Thai |
9,705,000 |
2.02 |
|
Mr.
Kittipol Cheungwattananont Nationality: Thai |
7,219,000 |
1.50 |
|
Mr. Krit Suteerachai Nationality:
Thai |
4,690,000 |
0.98 |
|
Others |
113,907,365 |
23.74 |
Total Shareholders
: 1,888
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Boonlert Kaewphanpruk No.
4165
BALANCE
SHEET [BAHT]
The
latest financial figures
published for December 31,
2014, 2013 &
2012 were:
ASSETS
|
Current Assets |
2014 |
2013 [Adjusted] |
2012 |
|
|
|
|
|
|
Cash and cash
equivalents |
112,294,636 |
41,839,750 |
39,844,391 |
|
Current investments |
137,903 |
134,717 |
131,343 |
|
Trade Accounts Receivable |
|
|
|
|
Related parties |
450,436 |
287,774 |
14,297,611 |
|
Other parties |
659,768,659 |
538,559,043 |
847,785,765 |
|
Bank receivables from currency Forward contracts |
- |
8,744,986 |
- |
|
Short-term loans to
and interest receivable from
related company |
25,907,962 |
26,730,782 |
31,346,879 |
|
Inventories |
1,471,700,631 |
1,096,885,033 |
1,134,090,488 |
|
Advance payment for purchasing of goods |
217,720,550 |
157,959,813 |
257,855,678 |
|
Other current assets
|
346,559 |
1,789,021 |
4,225,955 |
|
Total Current
Assets |
2,488,327,336 |
1,872,930,919 |
2,329,578,110 |
|
Non-Current Assets |
|
|
|
|
Fixed deposits
pledged as collateral
|
148,345,215 |
86,431,212 |
75,792,786 |
|
Available-for-sale investment |
29,744,400 |
21,246,000 |
- |
|
Investment in
associated |
150,000,000 |
86,323 |
- |
|
Investment in subsidiaries
& associated |
22,000,000 |
22,000,000 |
22,086,323 |
|
Property, plant
and equipment |
1,106,408,920 |
951,642,650 |
1,001,588,918 |
|
Intangible assets |
11,550,887 |
- |
- |
|
Deposit for
machineries acquisition |
21,198,088 |
163,505,892 |
100,269,844 |
|
Assets not
used in operation |
1,800,000 |
5,000,000 |
5,000,000 |
|
Deferred tax
assets |
31,639,031 |
27,121,077 |
31,077,610 |
|
Other non-current assets |
4,840,641 |
6,357,941 |
6,002,736 |
|
Total Non-Current Assets |
1,527,527,182 |
1,283,391,095 |
1,241,818,217 |
|
Total Assets
|
4,015,854,518 |
3,156,322,014 |
3,571,396,327 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2014 |
2013 [Adjusted] |
2012 |
|
|
|
|
|
|
Bank overdraft and short-term loan from bank |
1,939,378,171 |
1,234,293,070 |
1,428,123,285 |
|
Trade accounts payable |
|
|
|
|
Related parties |
1,141,528 |
6,993,257 |
1,287,127 |
|
Other
parties |
312,962,802 |
145,833,187 |
338,671,075 |
|
Payable from foreign
currency forward contracts |
4,437,889 |
- |
17,831,440 |
|
Current portion of
liabilities under finance lease
agreement |
1,476,664 |
1,015,810 |
1,436,994 |
|
Current Portion Loans from financial institution |
- |
- |
12,500,000 |
|
Accrued income tax |
9,300,274 |
284,805 |
31,228,466 |
|
Total Current
Liabilities |
2,268,697,328 |
1,388,420,129 |
1,831,078,387 |
|
|
|
|
|
|
Liabilities under financial lease contracts, net of current
portion |
1,250,894 |
439,681 |
738,398 |
|
Employee benefit obligations |
3,320,617 |
3,663,155 |
3,256,428 |
|
Total Liabilities |
2,273,268,839 |
1,392,522,965 |
1,850,642,617 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
Share capital-common shares, Baht 1 par value |
|
|
|
|
Authorised share
capital 549,973,800 shares |
549,973,800 |
549,973,800 |
549,973,800 |
|
Issued and fully
paid up share capital 480,096,277 common shares, Baht 1 par
value in 2014
and 479,937,265 common shares, Baht 1 par
value in 2013 & 2012 |
480,096,277 |
479,937,265 |
479,937,265 |
|
Premium on share capital |
297,745,124 |
297,427,100 |
297,427,100 |
|
Retained Earning |
|
|
|
|
Appropriated for
statutory reserve |
55,000,000 |
55,000,000 |
52,100,000 |
|
Unappropriated |
817,322,047 |
911,273,837 |
839,165,690 |
|
Other components of
shareholders’ equity |
92,422,231 |
20,160,847 |
52,123,655 |
|
Total
Shareholders' Equity |
1,742,585,679 |
1,763,799,049 |
1,720,753,710 |
|
Total
Liabilities & Shareholders' Equity |
4,015,854,518 |
3,156,322,014 |
3,571,396,327 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 [Adjusted] |
2012 |
|
|
|
|
|
|
Revenues from sales and
services |
4,781,881,937 |
5,422,999,306 |
7,305,926,114 |
|
Gain on foreign currency exchange |
13,096,572 |
- |
33,168,350 |
|
Other income |
38,679,664 |
12,341,923 |
13,428,894 |
|
Total Revenues
|
4,833,658,173 |
5,435,341,229 |
7,352,523,358 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of sales
and services |
4,649,961,650 |
4,985,379,748 |
6,888,758,520 |
|
Selling expenses |
69,228,356 |
79,003,350 |
91,909,188 |
|
Administrative expenses |
74,714,118 |
78,099,044 |
67,413,606 |
|
Loss on foreign currency exchange |
- |
40,028,790 |
- |
|
Management benefit expenses
|
8,840,894 |
10,010,483 |
13,550,140 |
|
Finance cost |
39,805,599 |
35,959,489 |
68,603,146 |
|
Total Expenses |
4,842,550,617 |
5,228,480,904 |
7,130,234,600 |
|
Profit before income
tax |
[8,892,444] |
206,860,325 |
222,288,758 |
|
Income tax [income] |
580,191 |
[45,464,370] |
[51,938,353] |
|
Net Profit / [Loss] |
[8,312,253] |
161,395,955 |
170,350,405 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.10 |
1.35 |
1.27 |
|
QUICK RATIO |
TIMES |
0.35 |
0.44 |
0.51 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.32 |
5.70 |
7.29 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.19 |
1.72 |
2.05 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
115.52 |
80.31 |
60.09 |
|
INVENTORY TURNOVER |
TIMES |
3.16 |
4.55 |
6.07 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
50.36 |
36.25 |
42.35 |
|
RECEIVABLES TURNOVER |
TIMES |
7.25 |
10.07 |
8.62 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
24.57 |
10.68 |
17.94 |
|
CASH CONVERSION CYCLE |
DAYS |
141.32 |
105.88 |
84.50 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
97.24 |
91.93 |
94.29 |
|
SELLING & ADMINISTRATION |
% |
3.20 |
3.08 |
2.37 |
|
INTEREST |
% |
0.83 |
0.66 |
0.94 |
|
GROSS PROFIT MARGIN |
% |
3.84 |
8.30 |
6.35 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(0.19) |
3.81 |
3.04 |
|
NET PROFIT MARGIN |
% |
(0.17) |
2.98 |
2.33 |
|
RETURN ON EQUITY |
% |
(0.48) |
9.15 |
9.90 |
|
RETURN ON ASSET |
% |
(0.21) |
5.11 |
4.77 |
|
EARNING PER SHARE |
BAHT |
(1.73) |
33.63 |
35.49 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.57 |
0.44 |
0.52 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.30 |
0.79 |
1.08 |
|
TIME INTEREST EARNED |
TIMES |
(0.22) |
5.75 |
3.24 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(11.82) |
(25.77) |
|
|
OPERATING PROFIT |
% |
(104.30) |
(6.94) |
|
|
NET PROFIT |
% |
(105.15) |
(5.26) |
|
|
FIXED ASSETS |
% |
16.26 |
(4.99) |
|
|
TOTAL ASSETS |
% |
27.23 |
(11.62) |
|
ANNUAL
GROWTH: ACCEPTABLE
An annual sales growth is -11.82%. Turnover has decreased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
3.84 |
Deteriorated |
Industrial
Average |
11.42 |
|
Net Profit Margin |
(0.17) |
Deteriorated |
Industrial
Average |
1.52 |
|
Return on Assets |
(0.21) |
Deteriorated |
Industrial
Average |
4.61 |
|
Return on Equity |
(0.48) |
Deteriorated |
Industrial
Average |
10.69 |
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 3.84%. 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 -0.17%.
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 -0.21%.
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 -0.48%.
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 |
1.10 |
Satisfactory |
Industrial
Average |
1.17 |
|
Quick Ratio |
0.35 |
|
|
|
|
Cash Conversion Cycle |
141.32 |
|
|
|
The Current Ratio is to ascertain whether a company's short-term assets
are readily available to pay off its short-term liabilities. The company's
figure is 1.1 times in 2014, decreased from 1.35 times, then it is generally
considered to have good short-term financial strength. When compared with the
industry average, the ratio of the company was lower.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 0.35 times in 2014,
decreased from 0.44 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 142 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.57 |
Acceptable |
Industrial
Average |
0.55 |
|
Debt to Equity Ratio |
1.30 |
Risky |
Industrial
Average |
1.20 |
|
Times Interest Earned |
(0.22) |
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 -0.23 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 0.57 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 :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.32 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.19 |
Deteriorated |
Industrial
Average |
3.03 |
|
Inventory Conversion Period |
115.52 |
|
|
|
|
Inventory Turnover |
3.16 |
Deteriorated |
Industrial
Average |
9.16 |
|
Receivables Conversion Period |
50.36 |
|
|
|
|
Receivables Turnover |
7.25 |
Acceptable |
Industrial
Average |
12.96 |
|
Payables Conversion Period |
24.57 |
|
|
|
The company's Account Receivable Ratio is calculated as 7.25 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 80 days at the
end of 2013 to 116 days at the end of 2014. This represents a negative trend.
And Inventory turnover has decreased from 4.55 times in year 2013 to 3.16 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.19 times and 1.72
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.65.68 |
|
|
1 |
Rs.101.02 |
|
Euro |
1 |
Rs.71.35 |
INFORMATION DETAILS
|
Analysis Done by
: |
HEE |
|
|
|
|
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.