MIRA
INFORM REPORT
|
Report No. : |
346895 |
|
Report Date : |
28.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
SAHAMITR PRESSURE CONTAINER PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
92 Soi Thientalay
7, Yaek 4, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
17.02.1981 |
|
|
|
|
Com. Reg. No.: |
0107537001609 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
The subject is
engaged in manufacturing of
LPG cylinders and
other related products.
|
|
|
|
|
No. of Employees : |
359 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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, 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
SAHAMITR PRESSURE CONTAINER PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 92 SOI THIENTALAY
7, YAEK 4,
BANGKHUNTHIEN-CHAYTALAY ROAD,
SAMAEDAM, BANGKHUNTHIEN,
BANGKOK 10150,
THAILAND
TELEPHONE : [66] 2895-4139-54
FAX : [66] 2416-5534
E-MAIL ADDRESS : info@smpcplc.com
marketing@smpcplc.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1981
REGISTRATION NO. : 0107537001609 [Former : BOR MOR JOR. 407]
TAX ID NO. : 3101127065
CAPITAL REGISTERED : BHT.
536,405,305
CAPITAL PAID-UP : BHT.
526,996,513
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED COMPANY
EXECUTIVE : MRS.
UBOL EKAHITANOND, THAI
PRESIDENT
NO. OF STAFF : 359
LINES OF BUSINESS : LPG
CYLINDERS AND OTHER
RELATED
PRODUCTS
MANUFACTURER, EXPORTER
AND 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 February
17, 1981 as
a private limited
company under the
registered name “SAHAMITR
PRESSURE CONTAINER CO., LTD.”,
in order to
produce LPG gas cylinders and
other related products
to both domestic
and international markets. Its
products have been
designed according to
Thai Industrial Standard [TIS], and
various international standards
such as DOT
of U.S.A., TC
of Canada, SS
of Singapore, SNI
of Indonesia, NFA
of Taiwan, PNS
of Philippines, SI of Israel,
SLS of Sri
Lanka, AS of
Australia, BS of
England, EN of
European Union and
etc. It currently
employs 359 staff.
The subject was
listed on the
Stock Exchange of
Thailand on December
3, 1991, and
its status was
converted to a public
limited company under
the name SAHAMITR PRESSURE
CONTAINER PUBLIC COMPANY
LIMITED on May
13, 1994.
It achieved the
quality standard ISO 9001 : 2000 certificate
in 2004.
The subject has been
manufacturing LPG cylinders
since 1981, and it is one
of the largest
manufacturers in the
world.
Awards/Certification
In 1985 : Quality Standard Mark
In 1988 : Outstanding Product and
Quality Product Award
In 1990 : Excellent Factory Award
In 1994 : Asia Pacific Awards
in Standardization of
Products
In 1995 : The subject achieved
the International Standard
ISO 9002
Certificate
[Certificate No. 95/5329] by
SGS Yarsley
International
Ltd.
In 2004 : It has achieved the
quality standard ISO 9001 : 2000 certification.
The subject’s registered address was
initially located at 72/9
Moo 7,
Bangkhunthien- Chaytalay Rd.,
Samaedam, Bangkhunthien, Bangkok
10150.
In 2011, its
registered address has
been changed to
92 Soi Thientalay
7, Yaek 4,
Bangkhunthien-Chaytalay Rd., Samaedam,
Bangkhunthien, Bangkok 10150,
by the
Bangkhunthien District Office.
Actually both are
the same location,
and this is
the
company’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Vinai Vittavasgarnvej :
Chairman |
|
Thai |
65 |
|
Mrs. Ubol Ekahitanond |
|
Thai |
74 |
|
Mrs. Supha Phromsaka Na
Sakolnakorn |
[x] |
Thai |
76 |
|
Mr. Surasak Urpsirisuk |
[x] |
Thai |
62 |
|
Mrs. Patama Laowong |
[x] |
Thai |
47 |
|
Mr. Taidee Visavaveja |
|
Thai |
76 |
|
Mr. Komin Linphrachaya |
|
Thai |
51 |
|
Mrs. Werawan Boonkwan |
|
Thai |
46 |
|
Mr. Jade Donavanik |
|
Thai |
43 |
AUTHORIZED PERSON
Two of the
mentioned directors [x]
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mrs. Ubol Ekahitanond is
the President.
She is Thai
nationality with the
age of 74
years old.
Mr. Surasak Urpsirisuk is
the Managing Director.
He is Thai
nationality with the
age of 62
years old.
Mr. Taidee Visavaveja is
the Senior Vice
President [Factory].
He is Thai
nationality with the
age of 76
years old.
Mrs. Patama Laowong is
the Senior Vice
President [Office].
She is Thai
nationality with the
age of 47
years old.
Mr. Yuan Riyatanon is
the Assistant Managing
Director.
He is Thai
nationality.
Mr. Thamik Ekahitanond is
the Assistant Managing
Director.
He is Thai
nationality.
Mr. Jerawut Laowong is
the Assistant Managing
Director.
He is Thai
nationality.
Mr. Jirasak Phromsaka Na
Sakolnakorn is the
Assistant Managing Director.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
of LPG cylinders
and other related
products. The products
are as follows:
LPG Cylinder for
cooking consists of 2 ends and a
shell using the hot rolled steel complies
with EN10120 or ISO4978 or JIS G3116 standards.
Automotive LPG Cylinders: multi valve
cylinder, 3-separated valve
system cylinder, 4-separated
valve system cylinder,
and automotive LPG
toroidal.
Other LPG cylinders: to
manufacture pressure cylinders for household purposes, SMPC also offers
a wide array of other pressure vessels for other uses. Its
products includes methyl
bromide cylinder, refrigerant
cylinder, lubricant cylinders,
specialty gas cylinder.
Parts & components: to manufacture
parts and components
according to
customers’ demands such as spud, Aluminum Durable Masking Disk, Dust Cap
& spud, valve,
valve cap, collar/handle
and foot ring.
The cylinders are
manufactured in a
comprehensive range for
industrial use, for
heating, cooking and
etc., and can
be used for
either propane, butane
or mixtures. The
liquid capacity of
the cylinder ranges are
from 0.9 liters
to 113.0 liters.
The subject is capable to manufacture
a full range of first quality cylinders to all international
specifications including British Standard BS 5045, Australian AS, European Standard
84/527, American DOT, French NF
M88703 and German DIN.
The subject also
provides reconditioning service
for cylinder products.
There are 2
types of LPG
Cylinders :-
1. Two Part of
Cylinder - Capacity size
: 0.45 - 16 Kgs.
2. Three Part of
Cylinder - Capacity size
: 18 - 50 Kgs.
PRODUCTION
Approximately 5,500,000 cylinders
per year [in
2014]
MAJOR BRANDS
“SMPC” and customer’s brands
PURCHASE
The subject purchases
raw materials mainly
hot rolled steel
and spare parts
from around 40-50 suppliers both
domestic and overseas.
70% of raw
materials is imported
from Korea, Republic
of China, Japan,
United Kingdom, Germany and
India, the remaining
30% is purchased
from local suppliers
and agents.
MAJOR SUPPLIERS
Sahaviriya Steel Group : Thailand
LPN Plate Mill
Public Company Limited : Thailand
Asia Metal Public
Company Limited :
Thailand
SALES
The products are sold
to both domestic
and overseas customers.
The subject has currently maintained
around 100 customers. 88% of
the products is exported
to New Zealand, Singapore,
Brunei, United Kingdom, Australia, Hong Kong,
Malaysia, Republic of China,
Myanmar, Laos, United Arab Emirates,
U.S.A., Africa, Vietnam,
Israel, Korea, Philippines,
India and Middle
East countries, and
the remaining 12%
is sold locally.
MAJOR CUSTOMERS
The Shell Company
of Thailand Ltd. : Thailand
PTT Public Co., Ltd. : Thailand
Unique Gas &
Petrochemical Public Co.,
Ltd. : Thailand
World Gas [Thailand]
Co., Ltd. : Thailand
Siam Gas and
Petrochemical Public Company
Limited : Thailand
REVENUE STRUCTURE
|
|
2014 |
2013 |
||
|
Type |
Million baht |
% |
Million baht |
% |
|
|
|
|
|
|
|
Domestic market |
349.76 |
12 |
333.46 |
16 |
|
Oversea market |
2,526.68 |
88 |
1,787.68 |
84 |
|
|
|
|
|
|
|
Total |
2,876.44 |
100 |
2,121.14 |
100 |
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
LITIGATION
Litigation
In March, April
and July 1998, the
company was taken
to the legal
actions by the
bank, and was
named as a defendant
on the Civil
Court for the
total of 6
cases in relation
to the settlement
of liabilities from
guarantor to related
company at the
amount of Bht.
1,797 million. However,
the related company
and the bank creditor had
later made a
compromised agreement to
the settlement of
liabilities in accordance
with the Court’s
order to restructure
the company’s organization
on December 24, 2002.
With the effect
on debt restructuring, the
settlement of liabilities
was rescheduled until
2011, and the
litigation had been
stopped and withdrawn
later on.
CREDIT
Sales are by
cash on the
credits term of
30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60-90 days.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BANKING
Krung Thai Bank
Public Co., Ltd.
[Head Office : 35
Sukhumvit Rd., Klongtoeynua,
Wattana, Bangkok 10110]
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok 10500]
Kasikornbank Public Co.,
Ltd.
[Head Office
: 1 Kasikorn
Lane, Rajburana Rd.,
Bangkok 10140]
EMPLOYMENT
The subject employs
359 staff, [office
staff and factory
workers]
LOCATION DETAILS
The premise is
owned for administrative office,
factory and warehouse at the heading
address. The premise has
total area of 21,000
square meters and located in an
industrial area.
COMMENT
SMPC production lines are fully automated in accordance with most modern
industrial practices, and manufacture products which meet the most rigorous
international standards and specifications. Massive continuous investment in
the most efficient production facilities is reflected in first quality
cylinders being produced.
Subject was established itself as a
prominent gas cylinder
manufacturer. Its products and
services are renowned for reliability, cost competitiveness and uncompromising standards of international
quality supplying the
products to leading
related industries.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 6,400,000 divided into
64,000 shares of Bht.
100 each.
The capital were
increased and decreased
later as follows:
Bht. 15,000,000
on June 29,
1971
Bht. 30,000,000
on July 27,
1990
Bht. 120,000,000
on May 24,
1993
Bht. 240,000,000
on April 28,
1994
Bht. 266,666,660 in 2008
Bht. 553,333,320
on April 9,
2010
Bht. 374,759,330
on May 10,
2011 [decreased]
The latest registered capital was
increased to Bht. 536,405,305 divided
into 536,405,305 shares of
Bht. 1 each,
with a current
capital paid-up at
Bht. 526,996,513.
MAIN SHAREHOLDERS :
[as at August
24, 2015] at
Bht. 526,996,513 of
capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Patama Laowong |
104,884,301 |
19.90 |
|
Mr. Thamik Ekahitanond |
54,243,281 |
10.29 |
|
Mr. Jirasak Phromsaka Na
Sakolnakorn |
35,685,000 |
6.77 |
|
Mrs. Benjawan Tharincharoen |
33,552,326 |
6.37 |
|
Mr. Bophit Phattrara-rangrong |
25,644,375 |
4.87 |
|
Mr. Samphan Vachirakulchai |
23,786,552 |
4.51 |
|
Mr. Jeerasak Laowong |
20,152,911 |
3.82 |
|
Mr. Taidee Visavaveja |
19,537,953 |
3.71 |
|
Mrs. Ubol Ekahitanond |
17,301,915 |
3.28 |
|
Bangkok Bank Public
Company Limited |
15,200,516 |
2.88 |
|
Mr. Bongkarn Kanchanaharn |
14,446,225 |
2.74 |
|
Other Shareholders |
162,561,158 |
30.86 |
Total Shareholders
: 2,064
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Mrs. Sumalee Chokdeeanant No.
3322
BALANCE SHEET
[BAHT]
The latest financial
figures published for December 31,
2014, 2013 &
2012 were:
ASSETS
[Unit : Thousand
Baht]
|
Current Assets |
2014 |
2013 |
2012 [Restated] |
|
|
|
|
|
|
Cash and Cash Equivalents
|
16,554 |
21,251 |
113,990 |
|
Trade Accounts Receivable |
233,974 |
263,209 |
168,075 |
|
Inventories |
512,753 |
441,546 |
485,379 |
|
Refundable Value Added
Tax |
18,738 |
6,902 |
46,417 |
|
Other Current Assets
|
19,969 |
19,686 |
21,385 |
|
|
|
|
|
|
Total Current Assets
|
801,988 |
752,594 |
835,246 |
|
Restricted Deposits with
Banks |
35,094 |
30,023 |
9,944 |
|
Investment Property |
31,122 |
31,960 |
31,960 |
|
Property, Plant &
Equipment - Net |
722,056 |
596,429 |
423,358 |
|
Deferred Income Tax
Asset |
12,677 |
12,547 |
13,615 |
|
Other Non-current Assets |
432 |
432 |
432 |
|
Total Assets |
1,603,369 |
1,423,985 |
1,314,555 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
[Unit : Thousand
Baht]
|
Current
Liabilities |
2014 |
2013 |
2012 [Restated] |
|
|
|
|
|
|
Short-term Loan from
Bank |
336,653 |
313,348 |
373,862 |
|
Trade Accounts Payable |
269,214 |
262,477 |
200,741 |
|
Amount due to
Related Party |
- |
21,875 |
- |
|
Current Portion of - Long-term
Loans under Debt
Restructuring Agreement |
- |
122,900 |
72,000 |
|
- Long-term Loan from Financial Institution |
22,800 |
- |
- |
|
- Liabilities
under Finance Leases |
716 |
1,316 |
1,335 |
|
Advances from Customers |
13,008 |
27,427 |
44,862 |
|
Accrued Commission Expenses |
46,099 |
22,317 |
12,573 |
|
Accrued Transportation Expenses |
15,715 |
22,494 |
17,275 |
|
Accrued Income Tax |
36,602 |
19,644 |
26,135 |
|
Other Accrued Expenses |
31,639 |
42,926 |
31,670 |
|
Accrued Import Duty |
14,395 |
26,508 |
- |
|
Other Current Liabilities |
1,967 |
983 |
3,712 |
|
|
|
|
|
|
Total Current Liabilities |
788,808 |
884,215 |
784,165 |
|
Long-term Loans under Debt
Restructuring Agreements -
Net |
- |
- |
122,900 |
|
Long-term Loan from
Financial Institution - Net |
33,900 |
- |
- |
|
Liabilities under Finance
Leases - Net |
962 |
1,678 |
1,029 |
|
Liabilities under Employee
Benefits Obligation -
Net |
29,283 |
28,446 |
32,764 |
|
Total Liabilities |
852,953 |
914,339 |
940,858 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10 par
value Authorized, issued
& fully paid-up share capital
46,844,916 shares |
468,449 |
468,449 |
468,449 |
|
|
|
|
|
|
Capital Paid |
468,449 |
468,449 |
468,449 |
|
Premium on Share
Capital |
6,098 |
6,098 |
50,000 |
|
Retained Earning - Appropriated for Legal Reserve |
15,551 |
1,755 |
983 |
|
- Unappropriated [Deficit] |
260,318 |
33,344 |
[145,735] |
|
|
|
|
|
|
Total Shareholders' Equity |
750,416 |
509,646 |
373,697 |
|
Total Liabilities &
Shareholders' Equity |
1,603,369 |
1,423,985 |
1,314,555 |
PROFIT & LOSS
ACCOUNT
[Unit :
Thousand Baht]
|
Revenue |
2014 |
2013 |
2012 [Restated] |
|
|
|
|
|
|
Net Sales |
2,876,436 |
2,121,141 |
2,319,807 |
|
Costs of Sales |
[2,232,177] |
[1,690,890] |
[1,845,458] |
|
|
|
|
|
|
Gross Profit |
644,259 |
430,251 |
474,349 |
|
Other Income |
131,328 |
80,472 |
77,479 |
|
Selling Expenses |
[223,372] |
[160,902] |
[140,959] |
|
Administrative Expenses |
[182,870] |
[150,074] |
[137,640] |
|
|
|
|
|
|
Income before Financial
Costs & Income Tax |
369,345 |
199,747 |
273,229 |
|
Financial Costs |
[23,028] |
[29,208] |
[44,293] |
|
|
|
|
|
|
Income before Income
Tax |
346,317 |
170,539 |
228,936 |
|
Income Tax |
[70,391] |
[34,590] |
[53,385] |
|
|
|
|
|
|
Income for the
Year |
275,926 |
135,949 |
175,551 |
|
Other Comprehensive Income [Loss] for the Year |
[73] |
- |
- |
|
Total Comprehensive Income for the Year |
275,853 |
135,949 |
175,551 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.02 |
0.85 |
1.07 |
|
QUICK RATIO |
TIMES |
0.34 |
0.33 |
0.42 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.98 |
3.56 |
5.48 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.79 |
1.49 |
1.76 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
83.84 |
95.31 |
96.00 |
|
INVENTORY TURNOVER |
TIMES |
4.35 |
3.83 |
3.80 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
29.69 |
45.29 |
26.45 |
|
RECEIVABLES TURNOVER |
TIMES |
12.29 |
8.06 |
13.80 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
44.02 |
56.66 |
39.70 |
|
CASH CONVERSION CYCLE |
DAYS |
69.51 |
83.95 |
82.74 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
77.60 |
79.72 |
79.55 |
|
SELLING & ADMINISTRATION |
% |
14.12 |
14.66 |
12.01 |
|
INTEREST |
% |
0.80 |
1.38 |
1.91 |
|
GROSS PROFIT MARGIN |
% |
26.96 |
24.08 |
23.79 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
12.84 |
9.42 |
11.78 |
|
NET PROFIT MARGIN |
% |
9.59 |
6.41 |
7.57 |
|
RETURN ON EQUITY |
% |
36.77 |
26.68 |
46.98 |
|
RETURN ON ASSET |
% |
17.21 |
9.55 |
13.35 |
|
EARNING PER SHARE |
BAHT |
5.89 |
2.90 |
3.75 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.53 |
0.64 |
0.72 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.14 |
1.79 |
2.52 |
|
TIME INTEREST EARNED |
TIMES |
16.04 |
6.84 |
6.17 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
35.61 |
(8.56) |
|
|
OPERATING PROFIT |
% |
84.91 |
(26.89) |
|
|
NET PROFIT |
% |
102.96 |
(22.56) |
|
|
FIXED ASSETS |
% |
21.06 |
40.88 |
|
|
TOTAL ASSETS |
% |
12.60 |
8.32 |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 35.61%. Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
26.96 |
Deteriorated |
Industrial Average |
139.12 |
|
Net Profit Margin |
9.59 |
Impressive |
Industrial Average |
6.12 |
|
Return on Assets |
17.21 |
Impressive |
Industrial Average |
6.27 |
|
Return on Equity |
36.77 |
Impressive |
Industrial Average |
10.43 |
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 26.96%. 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 9.59%,
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
17.21%, 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 36.77%, 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 Uptrend
Return on Equity Downtrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.02 |
Acceptable |
Industrial Average |
1.78 |
|
Quick Ratio |
0.34 |
|
|
|
|
Cash Conversion Cycle |
69.51 |
|
|
|
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 1.02 times in 2014, increased from 0.85 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 0.34 times in 2014,
increased from 0.33 times, then the company has not enough current assets that presumably
can be quickly converted to cash for pay financial obligations.
The Cash Conversion Cycle measures the number of days a company's cash
is tied up in the production and sales process of its operations and the
benefit from payment terms from its creditors. It meant the company could
survive when no cash inflow was received from sale for 70 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.53 |
Acceptable |
Industrial Average |
0.38 |
|
Debt to Equity Ratio |
1.14 |
Risky |
Industrial Average |
0.61 |
|
Times Interest Earned |
16.04 |
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 16.04 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 0.53 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 |
3.98 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.79 |
Impressive |
Industrial Average |
1.03 |
|
Inventory Conversion Period |
83.84 |
|
|
|
|
Inventory Turnover |
4.35 |
Impressive |
Industrial Average |
3.46 |
|
Receivables Conversion Period |
29.69 |
|
|
|
|
Receivables Turnover |
12.29 |
Impressive |
Industrial Average |
4.82 |
|
Payables Conversion Period |
44.02 |
|
|
|
The company's Account Receivable Ratio is calculated as 12.29 and
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has decreased from 95 days at the
end of 2013 to 84 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 3.83 times in year 2013 to 4.35 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.79 times and 1.49 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.64.95 |
|
|
1 |
Rs.99.73 |
|
Euro |
1 |
Rs.71.84 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
Report Prepared
by : |
TPT |
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.