MIRA INFORM REPORT
|
Report No. : |
346201 |
|
Report Date : |
26.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
KINGFISHER HOLDINGS LIMITED |
|
|
|
|
Registered Office : |
22nd Floor,
Panjathani Building,
127/27 Nonsee Road,
Chongnonsee, Yannawa,
Bangkok 10120 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Year of Establishment : |
1972 |
|
|
|
|
Com. Reg. No.: |
0105515000918 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject is engaged in
manufacturing wide range
of premium frozen
seafood, canned seafood
and canned pet
food products, as
well as innovative
canned and pouch value-added
lines |
|
|
|
|
No. of Employee : |
2,400 |
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 : |
Good |
|
|
|
|
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 – 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
KINGFISHER HOLDINGS
LIMITED
SUMMARY
BUSINESS
ADDRESS : 22nd FLOOR,
PANJATHANI BUILDING,
127/27 NONSEE
ROAD, CHONGNONSEE,
YANNAWA, BANGKOK
10120, THAILAND
TELEPHONE : [66] 2681-1035-43
FAX : [66] 2681-1055-6
E-MAIL
ADDRESS : khl@kingfisher.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1972
REGISTRATION
NO. : 0105515000918 [Former : 91/2515]
TAX
ID NO. : 3101104004
CAPITAL REGISTERED : BHT. 119,911,500
CAPITAL PAID-UP : BHT.
119,911,500
SHAREHOLDER’S PROPORTION : THAI : 51.00%
FOREIGN :
49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SHINNICHIRO TAKEDA JAPANESE
MANAGING DIRECTOR
NO.
OF STAFF : 2,400
LINES
OF BUSINESS : SEAFOOD PRODUCTS
MANUFACTURER,
EXPORTER AND DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD ERFORMANCE
HISTORY
The subject was
established on February
8, 1972 as
a private limited
company under the
name style “Safcol
Thailand Limited”. It
was initially a
joint venture between
Safcol of Australia
and a group
of Thai and
Hong Kong investors
in order to
produce canned fresh
tuna and frozen
seafood products. It has become
the first cannery
in Thailand of
fresh tuna for
export.
On September 18,
1989 the subject’s
name was changed
to “Kingfisher Holdings Limited”,
and a year
later Safcol Holding
Ltd. sold its
42% equity stake
to a new
investor consortium comprising
Asia Securities Trading
Co., Ltd., Bangkok Bank
and Siam Venture
Fund managed by
Hambrecht & Quist
[Thailand] Ltd.
In December 1990, Maruha Corporation of
Japan acquired a
33% stake, and
so doing, increased
Kingfisher’s capital base. Maruha,
one of the
World’s biggest seafood
enterprise, brought enormous technical
and marketing resources
to the group.
It currently employs
approximately 2,400 staff.
Presently, the major
shareholder is Maruha
Nichiro Holdings Inc.
of Japan.
Awards/Certification
The subject achieved many standards, such as EFSIS/BRC Global Standard, HACCP, GMP, HALAL, ISO 9001 and ISO 17025 certification.
The subject’s registered address was initially located at Southeast Insurance Building, 315 Silom Rd., Bangrak, Bangkok 10500.
On August 16 1972, subject’s registered address was moved to 1888-1890 [warehouse 45] New Rd., Yannawa, Bangkok 10120
On June 10, 1983 it moved again to 135 Arjnarong Rd., Klongtoey, Prakanong, Bangkok 10110
On May 23, 1996, the registered address was relocated to 22nd Flr., Panjathani Building, 127/27 Nonsee Rd., Chongnonsee, Yannawa, Bangkok 10120, and this is the company’s current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
Mr. Joseph Kaiyuen
Kiang |
[x] |
American |
67 |
|
Mr. Christopher John King |
|
British |
71 |
|
Mr. Chote Pokavanich |
[x] |
Thai |
73 |
|
Mr. Decha Sriweeradecha |
[x] |
Thai |
62 |
|
Mr. Masaru Ikemi |
[-] |
Japanese |
58 |
|
Mr. Osamu Momiyama |
[-] |
Japanese |
56 |
|
Mr. Shinichiro Takeda |
[-] |
Japanese |
56 |
|
Mr. Naohisa Kasuga |
[-] |
Japanese |
51 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can jointly sign
with anyone of the mentioned
directors [-] on behalf of the subject
with company’s affixed.
MANAGEMENT
Mr. Shinichiro Takeda is
the Managing Director.
He is Japanese
nationality with the
age of 56
years old.
Mr.
Joseph Kaiyuen Kiang
is the Deputy
Managing Director [Operation].
He
is American nationality
with the age
of 67 years
old.
Mr. Decha Sriweeradecha is
the Deputy Managing
Director [Financial & Accounting].
He is Thai nationality with
the age of 62 years
old.
BUSINESS OPERATIONS
The subject is engaged in
manufacturing wide range
of premium frozen
seafood, canned seafood
and canned pet
food products, as
well as innovative
canned and pouch
value-added lines. Its
products are as
follows:
1. Frozen Seafood
Shrimp products “KINGFISHER”
Fish products “KINGFISHER”
Crustacean/Cephalopod “KINGFISHER”
Value added
products “KINGFISHER”
2. Canned/ Pouch Seafood
Tuna/Value added “KINGFISHER”
Sardine/Mackerel “KINGFISHER”
Crustacean/Cephalopod “KINGFISHER”
3. Canned Pet food [Wet]
Cat/Dog foods “TOP
DOG”, “TOP CAT”
Canned/Pouch chicken “KINGFISHER”
Fish Protein “KINGFISHER”
The subject is
also a contract manufacturer
of the products
under customer’s brands.
PURCHASE
Most of raw
materials for processing
such as fish,
squid, shrimp, shellfish
and etc. are
purchased from local suppliers
and fishermen, the
remaining are imported
from Japan, Germany,
Indonesia, India, Myanmar,
Singapore and Vietnam.
MAJOR SUPPLIERS
Southeast Asian Packaging
& Canning Co., Ltd.
: Thailand
Products : Packaging & Canning Products
SALES
The products are
sold and serviced
to domestic and
international markets. 90%
of the products
is sold directly
to international agents
in the U.S.A.,
Great Europe, Africa,
Middle East, United
Kingdom, France, Germany,
Italy, Singapore, Brazil, Malaysia,
India, Brunei, Indonesia,
Korea, Taiwan, Hong
Kong, Vietnam, Australia,
New Zealand and etc.,
20% is exported
through Kingfisher Products
Limited [NZ] in
New Zealand and
Australia, and the remaining 10%
is distributed locally
by Kingfisher 108
Trading Limited, a
subsidiary company.
The subject is currently
producing the products
under its own
brand and over
100 customer’s brands
worldwide.
SUBSIDIARIES AND
AFFILIATED COMPANY IN THAILAND
Southeast Asian Packaging &
Canning Ltd.
Business Type : Manufacturer
of empty
can
K F Foods Ltd.,
Thailand
Business Type : Distributor of
food products
Kingfisher 108 Trading
Ltd., Thailand
Business Type : Trading Company
Oceanic Cannery Co., Ltd.,
Thailand
Business Type : Transportation service
SUBSIDIARY
AND AFFILIATED COMPANY
IN OVERSEAS
Kingfisher Products Limited,
New Zealand
Business Type : Trading company
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 for 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
credit term of
30 days.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BANKING
Hongkong & Shanghai
Banking Corp.
[Bangkok Office : 968 Rama 4 Rd.,
Silom, Bangrak, Bangkok
10500]
Bangkok Bank Public
Co., Ltd.
[Head Office : 333 Silom
Rd., Bangrak, Bangkok 10500]
The Siam Commercial
Bank Public Co., Ltd.
[Head Office : 9
Ratchadapisek Rd., Ladyao,
Jatujak, Bangkok 10500]
Kasikornbank Public Co., Ltd.
[Yannawa Branch : 1668/26-28
New Rd., Yannawa,
Sathorn,, Bangkok 10120]
EMPLOYMENT
The subject employs
approximately 2,400 staff. [office staff
and factory workers]
LOCATION DETAILS
The premise is rented for administrative office in a multi-storey building at the heading address. The premise is located in commercial/residential area.
Factories are located at the followings:
· 1261 Vichienchodok
Rd., T. Mahachai, A. Muang, Samutsakorn
74000
· 24-26 Soi
Raj-U-Thit 1, Raj-U-Thit Rd., T. Boryang, A.
Muang, Songkla 90000
· 233 Moo
4, Bangpoo Industrial
Estate, T. Praeksa, A.
Muang, Samutprakarn 10280
· 6/10 Moo
4, T. Banplaiklongkru, A. Nadee,
Samutsakorn 74000
· 1 Moo
4, T. Banplaiklongkru, A. Nadee,
Samutsakorn 74000.
COMMENT
The company becomes a leading food company with international acclaim for the world markets, and Maruha Corporation of Japan, one of the biggest seafood enterprises in the world, joined Kingfisher as a shareholder in 1990. This partnership has markedly improved Kingfisher access to the Japanese markets and raw material sources around the world. Its operations have diversified to include frozen premium seafood products, innovative canned and pouch value-added lines, pet foods, fish proteins and can making.
Due to a global economic slowdown, the subject was inevitably affected and it obtained a drastically decrease in both sales revenue and net profit in 2014 comparing to the previous year. Nevertheless, the subject is still accredited as a solid business in canned seafood in the country.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 1,500,000 divided
into 75,000 shares
of Bht. 20
each.
The capital was
increased later as
followings:
Bht. 6,500,000 on
October 4, 1978
Bht. 16,500,000 on
November 30, 1990
Bht. 39,941,000 on
October 1, 1993
Bht. 79,941,000 on
November 10, 1995
Bht. 119,911,500 on February
25, 2000
The latest registered
capital was increased
to Bht. 119,911,500
divided into 11,991,150
shares of Bht.
10 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE
[as
at April 28,
2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Maruha Nichiro Holdings
Inc. Nationality: Japanese Address : 2-20 3 Chome Toyosu,
Koto-Ku, Tokyo 135-8603,
Japan |
5,182,719 |
43.22 |
|
Mr. Decha Sriweeradecha Nationality: Thai Address : 151 Soi
Tien Sieng, South
Sathorn Rd., Thungmahamek, Sathorn,
Bangkok 10120 |
1,546,390 |
12.90 |
|
Land & Building
Development Co., Ltd. Nationality: Thai Address : 151 Soi Tien
Sieng, South Sathorn
Rd., Thungmahamek, Sathorn,
Bangkok 10120 |
1,411,379 |
11.77 |
|
Cheng Holding Co.,
Ltd. Nationality: Thai Address : 149 Soi
Tien Sieng, South
Sathorn Rd., Thungmahamek, Sathorn,
Bangkok 10120 |
1,034,284 |
8.62 |
|
Jasco Co., Ltd. Nationality: Thai Address : 52/107
Sukhumvit 3 Rd.,
Klongtoeynua, Wattana, Bangkok
10110 |
960,902 |
8.01 |
|
Maruha Holdings [Thailand]
Ltd. Nationality: Thai Address : 1126/2
New Petchburi Rd., Makkasan,
Rajthevi, Bangkok 10400 |
896,266 |
7.47 |
|
Mr. Joseph Kaiyuen
Kiang Nationality: American Address : 233
Moo 4, T. Bangpoo,
A. Muang, Samutprakarn 10280 |
692,944 |
5.78 |
|
Other Shareholders |
266,266 |
2.23 |
Total Shareholders : 12
Share Structure [as
at April 28,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
10 |
6,115,487 |
51.00 |
|
Foreign |
2 |
5,875,663 |
49.00 |
|
Total |
12 |
11,991,150 |
100.00 |
NAME
OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mr. Krisada Lertwana No.
4958
Financials
BALANCE SHEET [BAHT]
The latest
financial figures published as
at December 31,
2014, 2013 &
2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
66,498,740 |
64,874,816 |
34,159,895 |
|
Trade Accounts &
Other Receivable |
240,951,368 |
252,981,227 |
246,254,196 |
|
Short-term Loan to Related Company |
90,000,000 |
- |
- |
|
Inventories |
423,971,341 |
582,750,874 |
298,199,655 |
|
Other Current Assets
|
17,316,369 |
11,001,584 |
17,466,501 |
|
|
|
|
|
|
Total Current Assets
|
838,737,818 |
911,608,501 |
596,080,247 |
|
|
|
|
|
|
Investment in Subsidiaries |
470,498,329 |
470,498,329 |
480,698,748 |
|
Investment in Joint Venture |
64,796,000 |
44,796,000 |
14,796,000 |
|
Other Long-term Investment
|
2,067,750 |
2,067,750 |
2,067,750 |
|
Investment Property |
251,118,210 |
251,118,210 |
251,118,210 |
|
Fixed Assets |
312,438,934 |
329,192,066 |
284,169,150 |
|
Intangible Assets |
3,306,191 |
4,730,996 |
6,155,801 |
|
Other Non-current Assets |
8,443,595 |
1,981,934 |
- |
|
Total Assets |
1,951,406,827 |
2,015,993,786 |
1,635,085,906 |
LIABILITIES & SHAREHOLDERS’ EQUITY
[BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Short-term Loan from Financial Institutions |
- |
180,000,000 |
381,000,000 |
|
Trade Accounts & Other
Payable |
258,022,465 |
206,925,253 |
188,332,711 |
|
Short-term Loan from Related Company |
223,900,000 |
180,500,000 |
31,500,000 |
|
Accrued Income Tax |
5,098,040 |
3,965,378 |
- |
|
Other Current Liabilities |
4,389,299 |
2,780,399 |
3,695,094 |
|
|
|
|
|
|
Total Current Liabilities |
491,409,804 |
574,171,030 |
604,527,805 |
|
|
|
|
|
|
Provision for Employee Benefits
|
30,803,634 |
30,751,331 |
25,024,680 |
|
Total Liabilities |
522,213,438 |
604,922,361 |
629,552,485 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized and
issued share capital
11,991,150 shares |
119,911,500 |
119,911,500 |
119,911,500 |
|
|
|
|
|
|
Capital Paid |
119,911,500 |
119,911,500 |
119,911,500 |
|
Premium on Share Capital |
77,195,590 |
77,195,590 |
77,195,590 |
|
Retained Earnings: Appropriated for Statutory reserve |
11,991,150 |
11,991,150 |
11,991,150 |
|
General reserve |
85,000,000 |
85,000,000 |
85,000,000 |
|
Unappropriated |
1,135,095,149 |
1,116,973,185 |
711,435,181 |
|
Total Shareholders' Equity |
1,429,193,389 |
1,411,071,425 |
1,005,533,421 |
|
Total Liabilities &
Shareholders' Equity |
1,951,406,827 |
2,015,993,786 |
1,635,085,906 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
1,841,216,906 |
2,378,070,843 |
2,011,192,285 |
|
Service Income |
280,488,780 |
565,991,711 |
198,782,571 |
|
Gain on Exchange Rate |
27,385,061 |
78,793,261 |
38,974,366 |
|
Other Income |
115,747,444 |
79,366,259 |
92,417,877 |
|
Total Revenues |
2,264,838,191 |
3,102,222,074 |
2,341,367,099 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,751,349,686 |
2,320,866,801 |
1,947,806,010 |
|
Selling Expenses |
70,214,954 |
81,546,076 |
67,174,627 |
|
Administrative Expenses |
114,516,921 |
126,051,067 |
134,102,572 |
|
Total Expenses |
1,936,081,561 |
2,528,463,944 |
2,149,083,209 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
328,756,630 |
573,758,130 |
192,283,890 |
|
Financial Cost |
[3,342,155] |
[6,156,743] |
[5,885,897] |
|
Profit / [Loss] before Income
Tax |
325,414,475 |
567,601,387 |
186,397,993 |
|
Income Tax |
[7,513,761] |
[6,178,883] |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
317,900,714 |
561,422,504 |
186,397,993 |
KINGFISHER
HOLDING LIMITED
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.71 |
1.59 |
0.99 |
|
QUICK RATIO |
TIMES |
0.81 |
0.55 |
0.46 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
6.79 |
8.94 |
7.78 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.09 |
1.46 |
1.35 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
88.36 |
91.65 |
55.88 |
|
INVENTORY TURNOVER |
TIMES |
4.13 |
3.98 |
6.53 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
41.45 |
31.36 |
40.67 |
|
RECEIVABLES TURNOVER |
TIMES |
8.81 |
11.64 |
8.97 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
53.77 |
32.54 |
35.29 |
|
CASH CONVERSION CYCLE |
DAYS |
76.04 |
90.47 |
61.26 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
82.54 |
78.83 |
88.14 |
|
SELLING & ADMINISTRATION |
% |
8.71 |
7.05 |
9.11 |
|
INTEREST |
% |
0.16 |
0.21 |
0.27 |
|
GROSS PROFIT MARGIN |
% |
24.20 |
26.54 |
17.81 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
15.49 |
19.49 |
8.70 |
|
NET PROFIT MARGIN |
% |
14.98 |
19.07 |
8.43 |
|
RETURN ON EQUITY |
% |
22.24 |
39.79 |
18.54 |
|
RETURN ON ASSET |
% |
16.29 |
27.85 |
11.40 |
|
EARNING PER SHARE |
BAHT |
26.51 |
46.82 |
15.54 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.27 |
0.30 |
0.39 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.37 |
0.43 |
0.63 |
|
TIME INTEREST EARNED |
TIMES |
98.37 |
93.19 |
32.67 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(27.93) |
33.22 |
|
|
OPERATING PROFIT |
% |
(42.70) |
198.39 |
|
|
NET PROFIT |
% |
(43.38) |
201.20 |
|
|
FIXED ASSETS |
% |
(5.09) |
15.84 |
|
|
TOTAL ASSETS |
% |
(3.20) |
23.30 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -27.93%. Turnover has decreased from THB 2,944,062,554.00
in 2013 to THB 2,121,705,686.00 in 2014. While net profit has decreased from
THB 561,422,504.00 in 2013 to THB 317,900,714.00 in 2014. And total assets has
decreased from THB 2,015,993,786.00 in 2013 to THB 1,951,406,827.00 in 2014.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
24.20 |
Impressive |
Industrial
Average |
6.17 |
|
Net Profit Margin |
14.98 |
Impressive |
Industrial
Average |
(3.54) |
|
Return on Assets |
16.29 |
Impressive |
Industrial
Average |
(5.59) |
|
Return on Equity |
22.24 |
Impressive |
Industrial
Average |
(17.71) |
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. Gross Profit Margin is 24.2%. 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. Net Profit Margin ratio is 14.98%, 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. Return on Assets ratio is 16.29%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient profit in a dominant position within its industry.
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. Return on Equity ratio is 22.24%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient profit in a dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.71 |
Impressive |
Industrial
Average |
0.93 |
|
Quick Ratio |
0.81 |
|
|
|
|
Cash Conversion Cycle |
76.04 |
|
|
|
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 1.71 times in 2014, increase from 1.59 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 0.81 times in 2014,
increase from 0.55 times, by excluding inventory, the company may have problems
meeting current liabilities.
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 77 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.27 |
Impressive |
Industrial
Average |
0.81 |
|
Debt to Equity Ratio |
0.37 |
Impressive |
Industrial
Average |
3.81 |
|
Times Interest Earned |
98.37 |
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 98.37 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 0.27 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 Uptrend
Times Interest Earned Stable
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
6.79 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.09 |
Satisfactory |
Industrial
Average |
1.31 |
|
Inventory Conversion Period |
88.36 |
|
|
|
|
Inventory Turnover |
4.13 |
Impressive |
Industrial
Average |
2.57 |
|
Receivables Conversion Period |
41.45 |
|
|
|
|
Receivables Turnover |
8.81 |
Impressive |
Industrial
Average |
5.57 |
|
Payables Conversion Period |
53.77 |
|
|
|
The company's Account Receivable Ratio is calculated as 8.81 and 11.64
in 2014 and 2013 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate revenue. A lower ratio may indicate
over extension and collection problems. Conversely, a higher ratio may indicate
an overtly stringent policy. In this case, the company's A/R ratio in 2014
decreased from 2013. This would suggest the company had deteriorated in the
management of its debt collections.
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has decreased from 92 days at the
end of 2013 to 88 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 3.98 times in year 2013 to 4.13 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.09 times and 1.46
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.64.88 |
|
|
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.72.06 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
ASH |
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.