MIRA INFORM REPORT
|
Report No. : |
338050 |
|
Report Date : |
01.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
TOA PAINT [THAILAND]
CO., LTD. |
|
|
|
|
Registered Office : |
31/2 MOO 3, Bangna-Trad Highway, K.M. 23, T. Bangsaothong, A. Bangsaothong, Samutprakarn 10540 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Year of Establishment : |
1977 |
|
|
|
|
Com. Reg. No.: |
0105520017947 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is manufacturer,
distributor and exporter
over 200 kinds
of paints and related
products which consist of emulsion paint, enamel paint, special decorative coating, wood coating,
heavy duty coating,
powder coating |
|
|
|
|
No. of Employee : |
1,000 |
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 : |
Regular |
|
|
|
|
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’�tat, 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
TOA PAINT
[THAILAND] CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 31/2
MOO 3, BANGNA-TRAD
HIGHWAY, K.M. 23,
T.
BANGSAOTHONG, A. BANGSAOTHONG,
SAMUTPRAKARN 10540,
THAILAND
TELEPHONE : [66] 2335-5555
FAX : [66] 2312-8927,
2312-8365, 2312-8751, 2312-8919
E-MAIL
ADDRESS : adpr@toagroup.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1977
REGISTRATION
NO. : 0105520017947 [Former : 1795/2520]
TAX
ID NO. : 3101024456
CAPITAL REGISTERED : BHT. 900,000,000
CAPITAL PAID-UP : BHT.
900,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCALYEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE
LIMITED COMPANY
EXECUTIVE
: MR.
VANARAT TANGKARAVAKOON, THAI
PRESIDENT AND
CHIEF EXECUTIVE OFFICER
NO.
OF STAFF : 1,000
LINES
OF BUSINESS : PAINT
PRODUCTS
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT
WITH GOOD PERFORMANCE
HISTORY
The subject was
established on December 7,
1977 as a
private limited company
under the name style
TOA PAINT [THAILAND]
CO., LTD. by
Tangkaravakoon family. It is
a member of TOA
Group of Companies.
The subject currently
has approximately 1,000
employees.
The subject is the
largest paint manufacturer
in Thailand, with technical
cooperation from Rohm
and Haas, U.S.A. and
Chugoku Marine Paints,
Japan, combined with its own
experience, TOA Paint [Thailand] Co., Ltd. has
become the leader
not only in
paint production but
also in research
and development activities.
In 2001, the
TOA group has
restructured its core
paint business and
management. It has
also cut 10
percent of its
staff to about
1,000 staff. Reductions
were mainly made
by closing sales
offices in the north, northeast,
southern provinces, and
depots in Chiangmai,
Nakornsawan, Khon Kaen and Hadyai,
Songkla Provinces.
Presently, the subject
is a wholly
owned subsidiary of
TOA Corporation Co., Ltd.
The subject’s registered
address was initially
located at 1204
Krungkasem Rd.,
Klongmahanak, Pomprab, Bangkok
10200.
On May 1, 1978, it
was relocated to 107
Soi Charoensuk, Ekamai Rd.,
Klongton,
Prakanong, Bangkok 10110.
At present, the
subject’s registered address
is 31/2 Moo
3, Bangna-Trad Highway,
K.M. 23, T.
Bangsaothong, A.
Bangsaothong, Samutprakarn 10540,
and this is
the subject’s current
operation address.
Rewards of International
Accreditations
The subject achieved
several international accreditations as
followed:
- ISO 9002
Certification
- TIS [Thai
Government’s International Standard]
- Q S 9000
Certification
- International Standard
on R & D Lab
and QC Process.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Jatuphat Tangkaravakoon |
|
Thai |
42 |
|
Mr. Nattavuth Tangkaravakoon |
|
Thai |
41 |
|
Mrs. Bustharee Wanglee |
|
Thai |
37 |
|
Mr. Vanarat Tangkaravakoon |
|
Thai |
43 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Prachak Tangkaravakoon is
the President of
TOA Group.
He is Thai
nationality with the
age of 71 years old.
Mr. Vanarat Tangkaravakoon is
the President and
Chief Executive Officer.
He is Thai
nationality with the
age of 43
years old.
Mr. Jatuphat Tangkaravakoon is
the Vice President.
He is Thai
nationality with the age of
42 years old.
Mr. Pongcherd Jameekornkul is
the Vice President.
He is Thai
nationality.
Mrs. Bustharee Wanglee is
the Executive Committee.
She is Thai
nationality with the
age of 37
years old.
Mr. Nattavuth Tangkaravakoon is
the Managing Director.
He is Thai
nationality with the
age of 41
years old.
Mr. Manas Phetbuasak
is the Senior
Deputy Managing Director.
He is Thai
nationality.
Mrs. Puangpen Saengphet is
the Sales & Marketing Director.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activities are manufacturer,
distributor and exporter
over 200 kinds
of paints and related
products which consist of emulsion paint, enamel
paint, special decorative coating,
wood coating, heavy
duty coating, powder
coating, under its
own “TOA” brand. Its
products are applied
to all types
of building, automotive,
marine and other
industries.
“TOA” products
are as followss:
1.
High
Performance Architectural Coatings
·
Special
architectural decorative coatings
·
Ultra
premium coatings
2.
High
Performance Protective Coatings
·
TOA
heavy guard
3.
Marine
System Coatings
4.
Wood
Coatings
·
Furniture
industry
·
Kitchen
ware industry
·
Wood flooring
·
Wooden toy
5.
Construction
Chemical Products
·
Waterproofing
·
Joint
sealants and elastic
bonding
·
Concrete
repair and protection
6.
Computerized
Tinting Machine
- TOA
color world
7.
Hardware
Products
·
Aerosal
spray
·
Adhesive
paper
·
Abrasive
latex
8.
Industrial Paint
for
- Steel
structure
- Concrete
structure
- Flooring
- Fireproof
- Tank
coating
PURCHASE
Raw materials and components
mainly chemical and
pigment for its
production are purchased from both domestic and overseas suppliers in Japan, Germany, Republic of
China, India, Spain and
Singapore.
MAJOR SUPPLIERS
Thai Saeng Charoen
Co., Ltd. :
Thailand
TOA Chemical Industries
Ltd. : Thailand
IRPC Public Company
Limited : Thailand
Thai-MC Co., Ltd. : Thailand
SALES [LOCAL]
85% of is products
is sold locally
by wholesale to
dealers.
EXPORT
15% of the
products is exported
to Malaysia, Singapore,
Hong Kong, Korea,
Republic of China,
United Kingdom, Japan,
India, Vietnam, Indonesia,
Philippines, Cambodia, Laos,
Myanmar, Taiwan, United
Arab Emirates and
other countries in
Middle East.
MAJOR CUSTOMERS
TOA Paint [India]
Pvt. Ltd. : India
TOA Paint [Cambodia]
Co., Ltd. : Cambodia
TOA Paint [Vietnam]
Co., Ltd. : Vietnam
Shanghai-TOA Paint Co.,
Ltd. : Republic
of China
SUBSIDIARIES &
AFFILIATED COMPANIES
At present, TOA
Group can be divided
into 4 main
industrial groups both
domestic and international
as the followings:
1. Paint Industry
- TOA Chugoku
Paint Co., Ltd.
- TOA Union
Paint [Thailand] Co.,
Ltd.
- TOA Paint
[Vietnam] Co., Ltd.
- Shanghai - TOA Paint
Co., Ltd.
- TOA Paint
[Malaysia] Sdn. Bhd.
- TOA Coating
Sdn. Bhd.
- TOA Paint
[Laos] Co., Ltd.
- TOA Paint
[India] Private Limited
- TOA Paint
[Cambodia] Co., Ltd.
- TOA Co.,
Ltd.
2. Chemical Industry
- TOA Chemical
Industries Ltd.
- TOA Dovechem
Industries Co., Ltd.
- Sherwood Chemical
Co., Ltd.
3. Petrochemical Industry
- Thai Polyacetal
Co., Ltd.
- Thai Polycarbonate
Co., Ltd.
4. Automotive Industry
- TOA Shinto
[Thailand] Co., Ltd.
- TOA Abrasives
Co., Ltd.
- Takata-TOA Co.,
Ltd.
- Sekurit Saint-Gobain
TOA Co., Ltd.
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
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
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BUSINESS TRANSACTION
In term of sales,
the subject has
no problem regarding
the payment of
goods sold due
to their customers
are the subsidiary and affiliated companies,
whose term of payment
can be negotiated.
In term of import,
there is no
problem for the subject’s payment due
to the overseas
purchasing is mainly
by L/C at
sight.
BANKING
Krung Thai Bank
Public Co., Ltd.
[Head Office
: 35 Sukhumvit
Rd., Klongtoeynua, Wattana,
Bangkok 10250]
Bangkok Bank Public
Co., Ltd.
[Bangplee Branch :
Sukhumvit Rd., Bangplee,
Samutprakarn 10540]
The Siam Commercial Bank
Public Co., Ltd.
[Bangsaothong Branch : 138/9 Theparak
Rd., T. Bangsaothong,
Samutprakarn 10540]
EMPLOYMENT
The subject employs
approximately 1,000 office
staff and factory
workers [including group of
companies].
LOCATION DETAILS
The premise is owned for
administrative office and
factory I at
the heading address.
Premised is located
in provincial/industrial area.
Factory II is
located at 104 Soi
Pookmitr, Poochao Samingprai
Road, T. Samrong Tai,
A. Phrapradaeng,
Samutprakarn 10130.
Tel. [66] 2384-2250,
2394-1885-6, Fax. [66]
2384-2245.
Warehouse is located
at 31/1 Moo
3, Bangna-Trad Highway K.M.
23, T. Bangsaothong, A. Bangsaothong, Samutprakarn
10540.
COMMENT
More than three
decades of paint
business, TOA products continue to gain an increasing share
of the highly competitive in both
international market and
domestic sales due
to its premium product quality
and high service
level.
Domestic
paint market has
enjoyed moderate growth
from improving of
industrial and construction sector
in the past two
years. Economy turmoil hits
across the board including construction
and various industries,
which has also
impacted paint consumption
since the previous year.
Political unrest was
also a big concern
on consumer spending that
affected on the
government’s budget disbursement
and public investment.
Nevertheless, TOA Paint (Thailand) is set to expand production in Cambodia and
Indonesia by the end
of 2015. It expects
to begin manufacturing paint in
Cambodia by the end of this year
and in Indonesia early next year.
The subject
aims for 18.6 billion
baht in revenue this year, up
12% from 2014, when
it recorded 16.6
billion baht in earnings.
Of the projected
2015 revenue, 16.2 billion
baht will come
from the domestic
market while the
remaining 2.4 billion baht
will come from Asean.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 5,000,000 divided into 5,000
shares of Bht.
1,000 each.
The capital was
increased later as
followings:
Bht. 20,000,000
on August 24,
1982
Bht. 35,000,000
on December 21,
1984
Bht. 50,000,000
on June 17,
1986
Bht. 120,000,000
on September 1,
1987
Bht. 170,000,000
on July 12,
1990
Bht. 500,000,000
on May 23,
1997
Bht. 890,000,000
on November 24,
2000
Bht. 900,000,000
on April 29,
2008
The latest registered
capital was increased
to Bht. 900,000,000 divided into
900,000 shares of
Bht. 1,000 each
with fully paid.
MAIN SHAREHOLDERS
[as at
April 30, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
TOA Corporation Co.,
Ltd. Nationality: Thai Address : 107
Soi Charoensuk, Sukhumvit
63 Road, Klongtonnua, Wattana,
Bangkok |
899,998 |
100.00 |
|
Mr. Prachak Tangkaravakoon Nationality: Thai Address : 121
Soi Soonvijai 1, New
Petchburi Road,
Bangkapi, Huaykwang, Bangkok
|
1 |
- |
|
Mrs. La-or Tangkaravakoon Nationality: Thai Address : 121 Soi
Soonvijai 1, New Petchburi
Road,
Bangkapi, Huaykwang, Bangkok
|
1 |
- |
Total Shareholders : 3
Share Structure [as
at April 30,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
900,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
900,000 |
100.00 |
NAME
OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mr. Supachai Panyawattano No.
3930
Financials
The latest financial figures published as
at December 31,
2014, 2013 & 2012
were:
ASSETS
|
Current
Assets |
2014 |
2013 |
2012 [Adjusted] |
|
|
|
|
|
|
Cash and Cash Equivalents |
1,009,235,466 |
1,129,976,245 |
599,768,616 |
|
Trade Accounts & Other Receivable |
3,146,313,910 |
3,050,879,183 |
3,177,359,801 |
|
Current Portion of Receivable Per Hire-Purchase Contract |
134,001,407 |
141,385,376 |
150,741,405 |
|
Short-term Lending & Deferred Interest from Related Company |
3,328,241,155 |
3,568,740,168 |
3,116,377,143 |
|
Inventories |
1,571,419,262 |
1,566,796,600 |
1,525,347,245 |
|
Other Current Assets
|
61,542,612 |
70,414,770 |
63,336,835 |
|
|
|
|
|
|
Total Current Assets
|
9,250,753,812 |
9,528,192,342 |
8,632,931,045 |
|
Receivable Per Hire-Purchase Contract, Net of Current
Portion |
154,353,479 |
188,250,797 |
259,151,115 |
|
Investment in Subsidiaries |
2,182,024,755 |
2,234,581,557 |
2,033,473,206 |
|
Investment in Associated |
65,126,670 |
65,126,670 |
65,126,670 |
|
Other Long-term Investment |
151,917,830 |
151,917,830 |
151,917,830 |
|
Fixed Assets |
1,436,737,088 |
1,301,566,214 |
1,432,438,762 |
|
Computer Programme |
62,264,417 |
55,789,440 |
63,065,938 |
|
Deferred Income Tax Assets |
12,492,458 |
27,833,100 |
30,858,506 |
|
Other Non-current Assets |
8,073,004 |
8,970,440 |
11,014,813 |
|
Total Assets |
13,323,743,513 |
13,562,228,390 |
12,679,977,885 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 [Adjusted] |
|
|
|
|
|
|
Short-term Loan from Financial Institutions |
3,880,000,000 |
4,080,000,000 |
3,750,000,000 |
|
Short-term Loan from Related Company |
- |
- |
17,054,144 |
|
Trade Account and Other Payable |
3,112,340,745 |
3,240,664,468 |
3,061,099,885 |
|
Current Portion of Long-term Loan from Financial Institutions |
500,000,000 |
- |
- |
|
Accrued Income Tax |
161,801,045 |
195,033,273 |
149,742,810 |
|
Other Current Liabilities |
17,489,132 |
23,618,200 |
35,441,076 |
|
|
|
|
|
|
Total Current Liabilities |
7,671,630,922 |
7,539,315,941 |
7,013,337,915 |
|
|
|
|
|
|
Long-term Loan - Net of Current Portion |
- |
500,000,000 |
- |
|
Provision for Employee’s Benefit
|
135,508,413 |
122,945,769 |
113,588,525 |
|
Total Liabilities |
7,807,139,335 |
8,162,261,710 |
7,126,926,440 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share Capital : Bht. 1,000
par value authorized and
issued share capital
900,000 shares |
900,000,000 |
900,000,000 |
900,000,000 |
|
|
|
|
|
|
Capital Paid |
900,000,000 |
900,000,000 |
900,000,000 |
|
Retained Earning Appropriated for statutory reserve |
90,000,000 |
90,000,000 |
90,000,000 |
|
Unappropriated |
4,534,408,522 |
4,417,771,024 |
4,532,192,938 |
|
Other Components of Shareholder’s Equity |
[7,804,344] |
[7,804,344] |
- |
|
Total Shareholders' Equity |
5,516,604,178 |
5,399,966,680 |
5,522,192,938 |
|
Total Liabilities &
Shareholders' Equity |
13,323,743,513 |
13,562,228,390 |
12,679,977,885 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 [Adjusted] |
|
|
|
|
|
|
Sales |
14,522,426,423 |
14,297,466,951 |
14,363,754,414 |
|
Dividend Income |
191,302,881 |
140,072,727 |
85,670,654 |
|
Other Income |
286,715,202 |
311,046,982 |
254,354,553 |
|
Total Revenues |
15,000,444,506 |
14,748,586,660 |
14,703,779,621 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
10,079,669,428 |
9,886,630,894 |
10,643,643,652 |
|
Selling Expenses |
1,804,609,031 |
1,694,766,800 |
1,487,856,219 |
|
Administrative Expenses |
1,078,903,545 |
1,186,994,723 |
1,018,560,230 |
|
Total Expenses |
12,963,182,004 |
12,768,392,417 |
13,150,060,101 |
|
Profit before Financial
Expenses & Income Tax |
2,037,262,502 |
1,980,194,243 |
1,553,719,520 |
|
Financial Expenses |
[139,482,229] |
[142,618,212] |
[127,333,843] |
|
Profit before Income
Tax |
1,897,780,273 |
1,837,576,031 |
1,426,385,677 |
|
Income Tax |
[359,142,775] |
[362,856,452] |
[296,975,130] |
|
Net Profit/[Loss] |
1,538,637,498 |
1,474,719,579 |
1,129,410,547 |
TOA PAINT
[THAILAND] CO., LTD.
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.21 |
1.26 |
1.23 |
|
QUICK RATIO |
TIMES |
0.99 |
1.05 |
1.00 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
10.11 |
10.98 |
10.03 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.09 |
1.05 |
1.13 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
56.90 |
57.84 |
52.31 |
|
INVENTORY TURNOVER |
TIMES |
6.41 |
6.31 |
6.98 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
79.08 |
77.89 |
80.74 |
|
RECEIVABLES TURNOVER |
TIMES |
4.62 |
4.69 |
4.52 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
112.70 |
119.64 |
104.97 |
|
CASH CONVERSION CYCLE |
DAYS |
23.28 |
16.09 |
28.08 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
69.41 |
69.15 |
74.10 |
|
SELLING & ADMINISTRATION |
% |
19.86 |
20.16 |
17.45 |
|
INTEREST |
% |
0.96 |
1.00 |
0.89 |
|
GROSS PROFIT MARGIN |
% |
33.88 |
34.01 |
28.27 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
14.03 |
13.85 |
10.82 |
|
NET PROFIT MARGIN |
% |
10.59 |
10.31 |
7.86 |
|
RETURN ON EQUITY |
% |
27.89 |
27.31 |
20.34 |
|
RETURN ON ASSET |
% |
11.55 |
10.87 |
8.91 |
|
EARNING PER SHARE |
BAHT |
170.96 |
163.86 |
125.49 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.59 |
0.60 |
0.56 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.42 |
1.51 |
1.28 |
|
TIME INTEREST EARNED |
TIMES |
14.61 |
13.88 |
12.20 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
1.57 |
(0.46) |
|
|
OPERATING PROFIT |
% |
2.88 |
27.45 |
|
|
NET PROFIT |
% |
4.33 |
30.57 |
|
|
FIXED ASSETS |
% |
10.39 |
(9.14) |
|
|
TOTAL ASSETS |
% |
(1.76) |
6.96 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 1.57%. Turnover has increased from THB
14,297,466,951.00 in 2013 to THB 14,522,426,423.00 in 2014. While net profit
has increased from THB 1,474,719,579.00 in 2013 to THB 1,538,637,498.00 in
2014. And total assets has decreased from THB 13,562,228,390.00 in 2013 to THB
13,323,743,513.00 in 2014.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
33.88 |
Impressive |
Industrial
Average |
(11.18) |
|
Net Profit Margin |
10.59 |
Impressive |
Industrial
Average |
5.06 |
|
Return on Assets |
11.55 |
Impressive |
Industrial
Average |
6.53 |
|
Return on Equity |
27.89 |
Impressive |
Industrial
Average |
15.58 |
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 33.88%. 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 10.59%,
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
11.55%, 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 27.89%, 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 Uptrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.21 |
Satisfactory |
Industrial
Average |
1.41 |
|
Quick Ratio |
0.99 |
|
|
|
|
Cash Conversion Cycle |
23.28 |
|
|
|
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 1.21 times in 2014, decreased from 1.26 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 0.99 times in 2014,
decreased from 1.05 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 24 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.59 |
Acceptable |
Industrial
Average |
0.58 |
|
Debt to Equity Ratio |
1.42 |
Risky |
Industrial
Average |
1.39 |
|
Times Interest Earned |
14.61 |
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 14.61 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 0.59 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
10.11 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.09 |
Satisfactory |
Industrial
Average |
1.28 |
|
Inventory Conversion Period |
56.90 |
|
|
|
|
Inventory Turnover |
6.41 |
Impressive |
Industrial
Average |
4.76 |
|
Receivables Conversion Period |
79.08 |
|
|
|
|
Receivables Turnover |
4.62 |
Impressive |
Industrial
Average |
3.40 |
|
Payables Conversion Period |
112.70 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.62 and 4.69 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 58 days at the
end of 2013 to 57 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 6.31 times in year 2013 to 6.41 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.09 times and 1.05
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.66.26 |
|
|
1 |
Rs.101.99 |
|
Euro |
1 |
Rs.74.79 |
INFORMATION DETAILS
|
Analysis Done by
: |
TRI |
|
|
|
|
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.