|
|
|
MIRA INFORM REPORT
|
Report No. : |
489720 |
|
Report Date : |
07.02.2018 |
IDENTIFICATION DETAILS
|
Name : |
S. KIJCHAI ENTERPRISE
PUBLIC COMPANY LIMITED |
|
|
|
|
Formerly Known As : |
S. KIJCHAI MDF COMPANY LIMITED |
|
|
|
|
Registered Office : |
99/9 Moo 7,
T. Huayyang, A. Klang, Rayong 21110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
30.09.2017 |
|
|
|
|
Date of Incorporation : |
28.09.2010 |
|
|
|
|
Com. Reg. No.: |
0107559000435 [FORMER: 0215553003928] |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
The subject is
engaged in manufacturing, exporting
and distributing Medium
Density Fiber Board [MDF board],
with various sizes from
2.5 mm. to 25.0 mm.
thickness, under its
own brand “S.KIJCHAI”, mainly
supply to furniture
production industry. |
|
|
|
|
No. of Employees : |
250 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
Thailand |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
THAILAND - ECONOMIC OVERVIEW
With a relatively well-developed infrastructure, a free-enterprise economy,
and generally pro-investment policies, Thailand is highly dependent on
international trade, with exports accounting for about two-thirds of GDP.
Thailand’s exports include electronics, agricultural commodities, automobiles
and parts, and processed foods. The industry and service sectors produce about
90% of GDP. The agricultural sector, comprised mostly of small-scale farms,
contributes only 10% of GDP but employs about one-third of the labor force.
Thailand has attracted an estimated 3.0-4.5 million migrant workers, mostly
from neighboring countries.
Over the last few decades, Thailand has reduced poverty substantially.
In 2013, the Thai Government implemented a nationwide 300 baht (roughly $10)
per day minimum wage policy and deployed new tax reforms designed to lower
rates on middle-income earners.
Thailand’s economy is recovering from slow growth during the years since
the 2014 coup. Thailand’s economic fundamentals are sound, with low inflation,
low unemployment, and reasonable public and external debt levels. Tourism and
government spending - mostly on infrastructure and short-term stimulus measures
– have helped to boost the economy, and The Bank of Thailand has been
supportive, with several interest rate reductions.
Over the longer-term, household debt levels, political uncertainty, and
an aging population pose risks to growth.
|
Source
: CIA |
Company
name
S. KIJCHAI
ENTERPRISE PUBLIC COMPANY LIMITED
[Former: S.
KIJCHAI MDF COMPANY LIMITED]
SUMMARY
BUSINESS ADDRESS : 99/9
MOO 7, T. HUAYYANG, A. KLANG,
RAYONG
21110, THAILAND
TELEPHONE : [66] 38
928-188
FAX : [66] 38
928-189
E-MAIL ADDRESS : sale_mdf@kijchai.co.th
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2010
REGISTRATION NO. : 0107559000435 [FORMER: 0215553003928]
TAX ID NO. : 3034129808
CAPITAL REGISTERED : BHT.
800,000,000
CAPITAL PAID-UP : BHT.
800,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED COMPANY
EXECUTIVE : MR. VICHAI SAENGWONGKIJ,
THAI
MANAGING DIRECTOR
NO. OF STAFF : 250
LINES OF BUSINESS : MDF
BOARDS
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
|
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 September 28, 2010
originally as a
private limited company
under the registered
name “S. Kijchai MDF
Company Limited”, by
Thai and foreign
groups, with the
business objective to
manufacture MDF boards
for domestic and
overseas markets.
On September 14,
2016, the subject’s
status was converted
to a public
limited company, and changed
the registered name
to S. KIJCHAI ENTERPRISE
PUBLIC COMPANY LIMITED.
On September 26,
2017, it was listed
on the Stock
Exchange of Thailand [SET], trading
under symbol name
“SKN” . It
currently employs approximately
250 staff.
The subject’s registered
address is 99/9
Moo 7, T. Huayyang, A. Klang,
Rayong 21110, and
this is the
subject’s current operation
address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Vichien Saengwongkij |
[x] |
Thai |
62 |
|
Mr. Vichai Saengwongkij |
[x] |
Thai |
58 |
|
Mr. Sanguan Saengwongkij |
[-] |
Thai |
46 |
|
Mr. Chaiwat Taweepiriya |
[-] |
Thai |
58 |
|
Mr. Supot Massayamas |
|
Thai |
50 |
|
Mr. Chaiya Yimwilai |
|
Thai |
65 |
|
Mr. Tarate Poshyananda |
|
Thai |
54 |
|
Pol. Maj. Gen. Sunchai
Chaiamporn |
|
Thai |
61 |
|
Mr. Suvit Thaniyavarn |
|
Thai |
64 |
|
Mr. Somnuek Saengwongkij |
|
Thai |
52 |
|
Ms. Kanokporn Arayaprakarn |
|
Thai |
32 |
|
Ms. Orawan Saengwongkij |
|
Thai |
30 |
AUTHORIZED PERSON
Both of the
mentioned directors [x]
can jointly or
one of the directors [x]
can jointly sign
with one of
the directors [-]
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Vichai Saengwongkij is
the Managing Director.
He is Thai
nationality with the
age of 58
years old.
Ms. Sunisa Saengwongkij is
the Deputy Managing Director, Financial
and
Accounting Manager.
She is Thai
nationality.
Mr. Sanguan Saengwongkij is
the Deputy Managing
Director.
He is Thai
nationality with the
age of 46
years old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing, exporting
and distributing Medium
Density Fiber Board [MDF board],
with various sizes from
2.5 mm. to 25.0 mm.
thickness, under its
own brand “S.KIJCHAI”,
mainly supply to
furniture production industry.
PRODUCTION CAPACITY
MDF board :
500,000 cubic meters
per annum
PURCHASE
Most of raw materials
such as rubber wood,
chemical and accessories are
purchased from local suppliers, the
remaining and machinery
for the production
are imported from
Germany, Australia and
Malaysia.
SALES
90% of the products
is exported to U.S.A., Republic of
China, Taiwan, Korea,
Vietnam, Japan, Indonesia, Malaysia, Philippines,
Myanmar, Laos, Cambodia,
Singapore, India, Australia
and the countries
in Europe and
Middle East, the
remaining 10% is
sold locally.
MAJOR CUSTOMER
S. Kijchai Co., Ltd. : Thailand
RELATED AND AFFILIATED
COMPANIES
S. Kijchai group of
companies consists of:
S. Kijchai Capital Company
Limited
Business Type :
Holding company
S. Kijchai Wood Panel
Co., Ltd.
Business Type :
Manufacturer of lumbers
S. Kijchai Concrete Chantaburi
Co., Ltd.
Business Type :
Distributor of construction
equipment
S. Kijchai Co., Ltd.
Business Type :
Manufacturer of wooden
furniture
Thai Eastern Wood
(1987) Co., Ltd.
Business Type :
Manufacturer of wooden
furniture
S.E.P. Worldwide Co.,
Ltd.
Business Type :
Sawmill operator
Sahakij Klaeng Co.,
Ltd.
Business Type :
Sawmill operator
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 to the
past two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
Bank of Ayudhya
Public Company Limited
Bangkok Bank Public
Company Limited
EMPLOYMENT
The subject employs
approximately 250 office
staff and factory
workers.
LOCATION DETAILS
The premise is
owned for administrative office,
factory and warehouse
on 160,000 sq. m.
of area at
the heading address. Premise is
located in provincial,
in the Eastern region.
COMMENT
The subject is a
manufacture of MDF
Boards. The products are
mainly for export markets. The subject
posted slow sales
in the year
2016 compared to
the previous year. This
was due to
slow recovery in
related industries as
well as slow
consumption in export
markets. Nevertheless, its
business remains strong.
FINANCIAL INFORMATION
The capital was
registered at Bht.
600,000,000 divided into
6,000,000 shares of
Bht. 100 each with fully
paid.
The registered capital
was increased and
decreased later as
follows:
Bht. 720,000,000
on December 29,
2014 [increased]
Bht. 600,000,000
on December 28,
2015 [decreased]
Bht. 800,000,000
on September 14,
2016 [increased]
The latest registered
capital was increased
to Bht. 800,000,000
divided into
800,000,000 shares of
Bht. 1 each
with fully paid.
MAIN SHAREHOLDERS : [as at
September 21, 2017]
|
NAME |
HOLDING |
% |
|
|
|
|
|
S. Kijchai Capital Company
Limited |
400,800,000 |
50.10 |
|
Mr. Somnuek Saengwongkij |
60,000,000 |
7.50 |
|
Mr. Sanguan Saengwongkij |
60,000,000 |
7.50 |
|
Ms. Saengchan Saengwongkij |
60,000,000 |
7.50 |
|
Mrs. Nattaporn Arayaprakarn |
13,260,000 |
1.66 |
|
Deutsche Bank AG.
London |
8,000,000 |
1.00 |
|
Mr. Adirek Sripratak |
3,191,000 |
0.40 |
|
Bualuang Long Term
Equity Fund |
2,516,800 |
0.31 |
|
Phillip Securities (Thailand)
Public Company Limited |
2,500,000 |
0.31 |
|
Others |
189,732,200 |
23.72 |
NAME OF AUDITOR
& CERTIFIED PUBLIC ACCOUNTANT NO. :
Mr. Banjong Pichayaprasart No. 7147
BALANCE SHEET [BAHT]
The latest financial
figures published for December
31, 2016, 2015
and 2014 were:
ASSETS
|
Current Assets |
2016 |
2015 |
2014 [Adjusted] |
|
|
|
|
|
|
Cash and Cash Equivalents |
193,749,280.25 |
63,524,968.45 |
129,405,129.24 |
|
Trade Accounts and
Other Receivable |
38,197,964.86 |
38,178,479.02 |
20,627,492.88 |
|
Inventories |
89,223,812.73 |
111,803,646.30 |
109,624,291.76 |
|
Other Current Assets |
36,692,550.09 |
34,284,784.38 |
26,263,905.74 |
|
Total Current Assets
|
357,863,607.93 |
247,791,878.15 |
285,920,819.62 |
|
|
|
|
|
|
Property, Plant and
Equipment |
1,621,537,148.74 |
1,719,088,186.74 |
1,799,569,500.27 |
|
Intangible Assets |
5,077,520.50 |
5,322,585.94 |
186,096.82 |
|
Other Non-current Assets |
5,122,785.24 |
5,073,207.51 |
5,004,093.05 |
|
Total Assets |
1,989,601,062.41 |
1,977,275,858.34 |
2,090,680,509.76 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current Liabilities |
2016 |
2015 |
2014 [Adjusted] |
|
|
|
|
|
|
Bank Overdraft and Short-term Loan From Financial Institutions |
- |
- |
152,140,000.00 |
|
Trade Accounts and Other
Payable |
382,134,590.34 |
299,737,800.57 |
282,234,019.61 |
|
Current Portion of Long-term Liabilities |
204,718,857.42 |
198,670,935.75 |
- |
|
Short-term Loan |
- |
15,780,000.00 |
15,780,000.00 |
|
Other Current Liabilities |
106,479,537.52 |
22,771,727.76 |
213,457,753.72 |
|
Total Current Liabilities |
693,332,985.28 |
536,960,464.08 |
663,611,773.33 |
|
|
|
|
|
|
Long-term Loan |
506,134,081.46 |
709,772,970.37 |
907,411,859.96 |
|
Deferred Income Tax Liabilities |
50,786,523.88 |
35,226,110.37 |
- |
|
Provision for Employee Benefits |
2,695,976.13 |
1,384,309.00 |
867,245.00 |
|
Other Non-current Liabilities |
124,724.00 |
843,581.42 |
23,267,785.92 |
|
Total Liabilities |
1,253,074,290.75 |
1,284,187,435.24 |
1,595,158,664.21 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1
value authorized, and
issued share capital
800,000,000 shares
in 2016 |
800,000,000.00 |
|
|
|
Share capital : Baht 100 value
authorized, and issued share
capital 6,000,000 shares
in 2015 |
|
600,000,000.00 |
|
|
7,200,000 shares
in 2014 |
|
|
720,000,000.00 |
|
|
|
|
|
|
Capital Paid |
600,000,000.00 |
600,000,000.00 |
720,000,000.00 |
|
Retained Earning : [Deficit] |
|
|
|
|
Appropriated statutory
reserve |
19,611,748.58 |
1,924,400.00 |
- |
|
Unappropriated |
116,915,023.08 |
91,164,023.10 |
[224,478,154.45] |
|
Total Shareholders’ Equity |
736,526,771.66 |
693,088,423.10 |
495,521,845.55 |
|
Total Liabilities and
Shareholders’ Equity |
1,989,601,062.41 |
1,977,275,858.34 |
2,090,680,509.76 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2016 |
2015 |
2014 [Adjusted] |
|
|
|
|
|
|
Sales or Services Income |
1,477,686,660.11 |
1,649,906,997.22 |
1,526,383,752.98 |
|
Other Income |
14,479,464.20 |
14,240,297.57 |
21,483,858.25 |
|
Total Revenues |
1,492,166,124.31 |
1,664,147,294.79 |
1,547,867,611.23 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold or Services |
935,107,029.16 |
1,004,486,194.07 |
- |
|
Selling Expenses |
149,550,644.24 |
199,497,462.60 |
- |
|
Administrative Expenses |
87,329,122.73 |
34,511,976.90 |
- |
|
Financial Cost |
42,035,966.11 |
58,049,202.06 |
- |
|
Change in Finished Goods
and Work in Progress |
- |
- |
57,454,940.86 |
|
Raw Material and Material Supplies |
- |
- |
787,133,142.25 |
|
Employees Benefits Expenses |
- |
- |
37,773,183.65 |
|
Depreciation and Amortization |
- |
- |
108,963,055.51 |
|
Other Expenses |
- |
- |
436,330,814.35 |
|
Total Expenses |
1,214,022,762.24 |
1,296,544,835.63 |
1,427,655,136.62 |
|
|
|
|
|
|
Profit /[Loss] before Financial Cost and Income Tax |
278,143,362.07 |
367,602,459.16 |
120,212,474.61 |
|
Financial Cost |
[15,560,413.51] |
[13,472,841.61] |
[79,613,186.55] |
|
|
|
|
|
|
Profit /[Loss] before Income
Tax |
262,582,948.56 |
354,129,617.55 |
40,599,288.06 |
|
Income Tax |
- |
- |
[11,870,769.69] |
|
Net Profit / [Loss] |
262,582,948.56 |
354,129,617.55 |
28,728,518.37 |
BALANCE SHEET [BAHT]
The latest financial
figures published as
at September 30,
2017 was: (Unaudited )
ASSETS
(Thousands Baht)
(Reviewed)
|
Current Assets |
2017 |
|
|
|
|
Cash and cash
equivalents |
1,501,391 |
|
Trade accounts and
other receivable |
26,621 |
|
Inventories |
87,233 |
|
Other current assets |
37,895 |
|
Total Current Assets
|
1,653,140 |
|
|
|
|
Restricted bank deposits |
5,168 |
|
Property, plant and equipment |
1,571,462 |
|
Advance payment for
purchase machinery |
127,803 |
|
Intangible assets |
4,511 |
|
Other non-current assets |
546 |
|
Total Assets |
3,362,630 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
(Thousands Baht)
(Reviewed)
|
Current Liabilities |
2017 |
|
|
|
|
Short-term loan from
financial institution |
106,358 |
|
Trade and other
payable |
276,844 |
|
Current portion of liabilities |
239,309 |
|
Advance received for
goods |
57,222 |
|
Other current liabilities |
594 |
|
Total Current Liabilities |
680,327 |
|
|
|
|
Long-term loans from
financial institution |
406,628 |
|
Deferred income ax liabilities |
63,736 |
|
Provision for employee benefits |
2,199 |
|
Total Liabilities |
1,152,890 |
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
Share capital Authorized share
capital 800,000,000 ordinary
shares, Baht 1 par value
|
800,000 |
|
Issued and
paid-up share capital
|
|
|
800,000,000 ordinary
shares, Baht 1 par value
|
800,000 |
|
Premium on share
capital |
1,225,978 |
|
Retained earnings |
|
|
Appropriated statutory
reserve |
19,612 |
|
Unappropriated |
164,150 |
|
Total Shareholders’ Equity |
2,209,740 |
|
Total Liabilities and
Shareholders’ Equity |
3,362,630 |
PROFIT & LOSS
ACCOUNT
For the nine-month
periods ended September
30, 2017:
(Thousands Baht)
(Reviewed)
|
Revenue |
2017 |
|
|
|
|
Revenue from sales |
1,128,641 |
|
Cost of sales |
[752,800] |
|
Gross profit |
375,841 |
|
|
|
|
Other income |
12,633 |
|
Selling expenses |
[142,389] |
|
Administrative expenses |
[53,366] |
|
Financial cost |
[22,457] |
|
Profit before income
tax |
170,262 |
|
Income Tax |
[12,735] |
|
Net Profit / [Loss] |
157,527 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.52 |
0.46 |
0.43 |
|
QUICK RATIO |
TIMES |
0.33 |
0.19 |
0.23 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.91 |
0.96 |
0.85 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.74 |
0.83 |
0.73 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
34.83 |
40.63 |
50.83 |
|
INVENTORY TURNOVER |
TIMES |
10.48 |
8.98 |
7.18 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
9.44 |
8.45 |
4.93 |
|
RECEIVABLES TURNOVER |
TIMES |
38.68 |
43.22 |
74.00 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
149.16 |
108.92 |
130.87 |
|
CASH CONVERSION CYCLE |
DAYS |
(104.90) |
(59.84) |
(75.11) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
63.28 |
60.88 |
51.57 |
|
SELLING & ADMINISTRATION |
% |
16.03 |
14.18 |
9.61 |
|
INTEREST |
% |
3.90 |
4.33 |
5.22 |
|
GROSS PROFIT MARGIN |
% |
37.70 |
39.98 |
49.84 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
18.82 |
22.28 |
7.88 |
|
NET PROFIT MARGIN |
% |
17.77 |
21.46 |
1.88 |
|
RETURN ON EQUITY |
% |
35.65 |
51.09 |
5.80 |
|
RETURN ON ASSET |
% |
13.20 |
17.91 |
1.37 |
|
EARNING PER SHARE |
BAHT |
0.44 |
59.02 |
3.99 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.63 |
0.65 |
0.76 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.70 |
1.85 |
3.22 |
|
TIME INTEREST EARNED |
TIMES |
4.83 |
5.14 |
1.51 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(10.44) |
8.09 |
|
|
OPERATING PROFIT |
% |
(24.34) |
205.79 |
|
|
NET PROFIT |
% |
(25.85) |
1,132.68 |
|
|
FIXED ASSETS |
% |
(5.67) |
(4.47) |
|
|
TOTAL ASSETS |
% |
0.62 |
(5.42) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -10.44%. Turnover has decreased from THB
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
37.70 |
Impressive |
Industrial Average |
- |
|
Net Profit Margin |
17.77 |
Impressive |
Industrial Average |
(63.45) |
|
Return on Assets |
13.20 |
Impressive |
Industrial Average |
(3.93) |
|
Return on Equity |
35.65 |
Impressive |
Industrial Average |
(7.02) |
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 37.7%. 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 17.77%,
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 13.2%, 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 35.65%, 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 |
0.52 |
Risky |
Industrial Average |
0.54 |
|
Quick Ratio |
0.33 |
|
|
|
|
Cash Conversion Cycle |
(104.90) |
|
|
|
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 0.52 times in 2016, increase from 0.46 times, then the company may not be
efficiently using its current assets. 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 0.33 times in 2016,
increase from 0.19 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 -105 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.63 |
Acceptable |
Industrial Average |
0.37 |
|
Debt to Equity Ratio |
1.70 |
Risky |
Industrial Average |
0.58 |
|
Times Interest Earned |
4.83 |
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 4.83 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 0.63 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 |
0.91 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.74 |
Impressive |
Industrial Average |
0.06 |
|
Inventory Conversion Period |
34.83 |
|
|
|
|
Inventory Turnover |
10.48 |
Impressive |
Industrial Average |
1.25 |
|
Receivables Conversion Period |
9.44 |
|
|
|
|
Receivables Turnover |
38.68 |
Impressive |
Industrial Average |
1.51 |
|
Payables Conversion Period |
149.16 |
|
|
|
The company's Account Receivable Ratio is calculated as 38.68 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 41 days at the
end of 2015 to 35 days at the end of 2016. This represents a positive trend.
And Inventory turnover has increased from 8.98 times in year 2015 to 10.48
times in year 2016.
The company's Total Asset Turnover is calculated as 0.74 times and 0.83
times in 2016 and 2015 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 |
INR 64.27 |
|
|
1 |
INR 89.72 |
|
Euro |
1 |
INR 79.52 |
|
Thai Baht |
1 |
INR 2.04 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.