|
|
|
MIRA INFORM REPORT
|
Report No. : |
491734 |
|
Report Date : |
15.02.2018 |
IDENTIFICATION DETAILS
|
Name : |
SIAM MAKRO PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
1468 Phatthanakan Road, Suan Luang, Bangkok 10250, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2016 |
|
|
|
|
Date of Incorporation : |
10.05.1988 |
|
|
|
|
Com. Reg. No.: |
0107537000521 |
|
|
|
|
Legal Form : |
Private
limited company |
|
|
|
|
Line of Business : |
The subject’s principal business is engaged
in operating cash
and carry wholesale
business to registered
members, under the
name “MAKRO”
throughout Thailand. It distributes
food and non-food
products such as
consumer goods, household
products, home and
kitchen equipments, electrical
appliances & D.I.Y.,
stationeries & office
automations, electrical products,
sporting goods, furniture & household goods,
foods & beverages,
cosmetics & cleaning
products, general grocery,
pharmaceutical &
nutrition foods, bakery
and restaurant equipments & supplies. |
|
|
|
|
No. of Employees : |
13,290 |
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+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
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
|
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
SIAM MAKRO
PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 1468 PHATTHANAKAN
ROAD, SUAN LUANG,
BANGKOK 10250,
THAILAND
TELEPHONE
: [66]
2067-8999
FAX : [62] 2067-9888
E-MAIL ADDRESS : -
WEBSITE : www.siammakro.co.th
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1988
REGISTRATION NO. : 0107537000521 [Former : BOR MOR JOR.299]
TAX ID NO. : 3101522846
CAPITAL REGISTERED : BHT.
2,400,000,000
CAPITAL PAID-UP : BHT.
2,400,000,000
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE
: MRS.
SUCHADA ITHIJARUKUL, THAI
CHIEF EXECUTIVE
OFFICER
NO. OF
STAFF : 13,290
LINES OF
BUSINESS : CASH AND
CARRY WHOLESALE BUSINESS
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD FOR
NORMAL BUSINESS ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The subject was
established on May
10, 1988 as
a private limited
company under the
registered name “Siam
Makro Co., Ltd.” to
be engaged in
cash & carry
wholesale business under
the name “MAKRO”.
The subject was
set up by
a joint venture
between the SHV
Group of Netherlands,
which has operated store under
the Makro trademark for over 25 years
and the CP
Group
of Thailand, which
is engaged in
a wide range of agri-industrial, as
well as telecommunications and
retail business in
Thailand.
On February 11,
1994, its status
was converted to
a public limited
company under the
name SIAM MAKRO
PUBLIC COMPANY LIMITED,
and was listed
on the Stock
Exchange of Thailand
in June 1994.
The subject currently
has 115 branches
throughout the country.
It currently employs
13,290 staff.
The subject’s registered
address was initially
located at 2nd Floor,
3498 Lardprao Road,
Klongchan, Bangkapi, Bangkok
10240.
Later, the registered
address was relocated
to 1468 Phatthanakan
Road, Suan Luang,
Bangkok 10250, and
this is the
subject’s current operation
address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Prasert Jarupanich |
[x] |
Thai
|
70 |
|
Mr. Arsa Sarasin : Chairman |
|
Thai
|
82 |
|
Mr. Chavalit Uttasart |
|
Thai
|
70 |
|
Mrs. Suchada Ithijarukul : Vice
Chairman |
[-] |
Thai |
66 |
|
Mr. Athaporn Khaimarn |
|
Thai |
74 |
|
Mr. Thira Wipuchanin |
|
Thai |
69 |
|
Mrs. Saowaluck
Thithapant |
[-] |
Thai |
63 |
|
Mr. Korsak
Chairsamisak : Vice Chairman |
[x] |
Thai |
66 |
|
Mr. Pittaya
Jearavisitkul |
[-] |
Thai |
63 |
|
Mr. Piyawat
Titasattavorakul |
[-] |
Thai |
65 |
|
Mr. Chaiyawat Wibulswasdi |
|
Thai |
72 |
|
Mr. Joti Bhokavanij |
|
Thai |
76 |
|
Mr. Narong
Chearavanont |
[x] |
Thai |
53 |
|
Mr. Adirek
Sripratak |
|
Thai |
72 |
|
Mr. Umroong
Sanphasitvong |
[x] |
Thai |
65 |
AUTHORIZED PERSON
Any of the mentioned
directors [x] can
jointly sign with
anyone of the
mentioned
directors [-] on
behalf of the
subject with the company’s
affixed.
MANAGEMENT
Mrs. Suchada Ithijarukul
is the Chief
Executive Officer.
She is Thai
nationality with the
age of 66
years old.
Mr. Lin, Chi-Lung
is the Chief
Operation Officer - Communication Marketing
and Supply
Chain.
He is Chinese-Taipei nationality.
Mr. Jean-Pieere Bienfait
is the Chief
Operation Officer - International Business.
He is Dutch
nationality.
Mrs. Saowaluck
Thithapant is the
Chief Financial & Shared
Service Officer.
She is Thai
nationality with the
age of 63
years old.
Mr. Paul Stephen
Howe is the
Chief Business and
Information Technology Officer.
He is British
nationality.
Mr. David Poussier is
the Chief Operation
Officer - Sales Operations, Customer
Development and Construction
& Facilities.
He is French
nationality.
BUSINESS OPERATIONS
The subject’s principal business is engaged
in operating cash
and carry wholesale
business to registered
members, under the name “MAKRO”
throughout Thailand. It distributes
food and non-food
products such as
consumer goods, household
products, home and
kitchen equipments, electrical
appliances & D.I.Y.,
stationeries & office
automations, electrical products,
sporting goods, furniture & household goods,
foods & beverages, cosmetics
& cleaning products, general
grocery, pharmaceutical & nutrition foods,
bakery and restaurant
equipments & supplies. mainly to small
and medium size
businesses, retailers, caterers
professional and service
sectors and institutions.
The core business
can be divided
into 5 main
types as follows:
1. “MAKRO” Cash &
Carry
To operate
cash and carry
service center under
“MAKRO” selling
wide range
of food and
non-food products to retailers
and end-users.
2. “MAKRO” Food Service
To provide
management, technical consultant
and support services to
hotel,
restaurant, food
shop and catering
business groups, which
is called “HoReCa”
group.
3. ECO Plus Store
To distribute
and supply wide
range of fresh
foods to HoReCa
group and retailer
group.
4. “MAKRO” Food Shop
To distribute
complete small size
of fresh and
frozen foods, through
“MAKRO” food
shop, Town In Town
branch, operates on
800 square meters
of
commercial area.
5. Frozen and Chilled
Food Store
To distribute
and service wide
range of frozen
and chilled foods
under the name
“SIAM FROZEN”.
The subject also distributes the products under Distributor Own Brand [D.O.B] such as “ARO”, “Q-BIZ”, “HIGH STYLE”, “STARLINE”, “M&K”, “PETZERIEND”, “PROTECH” and “SAVEPAK”. Most of the products are manufactured by local manufacturers.
PURCHASE
90% of the
products is purchased
from local suppliers
and agents, the
rest 10% is
imported from Republic
of China, Japan,
India, Malaysia and
Taiwan.
MAJOR SUPPLIERS
Charoen Pokphand Food
Public Company Limited
Saha
Pathanapibul Public Company
Limited
Star Marketing Co.,
Ltd.
Universal Food and
Marketing Co., Ltd.
CP Meiji Co.,
Ltd.
SALES
99% of the
products is sold locally to
3 main customer
groups: retailer group,
“HoReCa” [Hotel, Restaurant
& Catering] groups, and
general service business
group, the remaining
1% is exported
to Vietnam.
REVENUE STRUCTURE [company
and subsidiary]
|
|
2016 |
2015 |
||
|
Business [Products/ Service] |
Million Baht |
% |
Million Baht |
% |
|
|
|
|
|
|
|
1. Makro Cash & Carry/ Makro Foodservice/Eco Plus/ Makro Foodshop/Siam Frozen [operated
by Makro Plc.] |
170,373 |
98.6 |
153,799 |
98.6 |
|
2. Providing management, technical
consultancy and
support services [operated by Makro ROH, ARO, ProMart] |
- |
- |
- |
- |
|
3. Importing
and trading of frozen
and chilled foods [operated
by Siam Food Services Ltd] |
2,158 |
1.2 |
1,870 |
1.2 |
|
4. Importing, exporting
and trading of frozen
and chilled foods [operated
by Vina Siam Food Co., Ltd.] |
259 |
0.2 |
248 |
0.2 |
|
|
|
|
|
|
|
Total Income |
172,790 |
100.00 |
155,917 |
100.00 |
SUBSIDIARIES
& AFFILIATED COMPANIES
Siam Food Services
Limited
Business Type : Importer
& distributor of
food products
Investment :
99.99%
Vina Siam Food
Company Limited
Business Type : Distributing
of frozen and
chilled food products
in Vietnam
Investment : 100%
Makro ROH Company
Limited
Business Type : Investing,
supplying, managing and
technical consulting services
Investment : 99.99%
ARO Company Limited
Business Type : Providing
marketing & Business
consultancy services in Myanmar
Investment : 100%
ProMart Company Limited
Business Type : Selling
non-food products
Investment : 99.99%
Makro (Cambodia) Company
Limited
Business Type : Wholesale
and retail business
in Cambodia
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.
BANKING
Bangkok Bank Public
Company Limited
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok 10500]
Kasikornbank
Public Company Limited
[Head Office
: 1 Kasikorn
Lane, Rajburana Rd.,
Rajburana, Bangkok 10110]
EMPLOYMENT
The subject employs
13,290 staff nationwide.
LOCATION DETAILS
The premise is owned
for administrative office and
warehouse at the
heading address. Premise
is located in
residential/commercial area.
BRANCHES
The subject currently
has total of 115 branches consist of
24 branches in Bangkok Metropolitan and 91
branches in provincial,
with total commercial
area of 704,017
square meters as
the followings:
- MAKRO
Cash & Carry : 76 Branches
- MAKRO
Food Service : 17 Branches
- MAKRO
Food Shop : 3
Branches
- Siam
Frozen Shop : 8
Branches
- Eco
Plus Shop : 11 Branches
COMMENT
The subject is the one and only self-service cash and carry store in the country. It carries more than 10,000 items from variety of goods to food products at the wholesale prices. The subject’s sales or service income since the beginning of 2016 has continually increased from the year ended on December 31, 2015. Its business remains strong and profitable.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 1,000,000, divided into
10,000 shares of
Bht. 100 each.
The capital was
increased later as
followings:
Bht. 950,000,000 in
December 1989
Bht. 1,350,000,000 in
June 1990
Bht. 1,801,743,000 in
December 1993
Bht. 2,400,000,000 in
February 1994
The latest registered
capital was divided
into 4,800,000,000 shares
of Bht. 0.50
each
with fully paid.
MAIN
SHAREHOLDERS : [as at
August 24, 2017]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Siam Makro Holdings
(Thailand) Limited |
2,640,302,800 |
55.01 |
|
CP All Public Company Limited |
2,057,846,700 |
42.87 |
|
Others |
101,850,500 |
2.12 |
Total
Shareholders : 3,206
NAME OF AUDITOR
& CERTIFIED PUBLIC ACCOUNTANT
NO. :
Mr. Charoen Phusamritlert
No. 4068
financial
BALANCE SHEET [BAHT]
The latest financial figures published
as at December 31,
2016, 2015 and
2014 were:
ASSETS
|
Current
Assets |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Cash and cash
equivalents |
2,427,123,133 |
2,179,696,702 |
4,482,255,014 |
|
Trade accounts receivable |
83,210,667 |
45,607,860 |
75,741,107 |
|
Short-term loans to subsidiary |
- |
- |
16,410,000 |
|
Inventories
|
12,896,064,639 |
12,360,541,597 |
10,147,876,169 |
|
Purchase
discounts receivable |
1,187,016,094 |
1,000,957,522 |
1,161,020,844 |
|
Accrued income |
478,706,557 |
401,907,368 |
433,608,391 |
|
Current
portion of leasehold
right |
93,506,084 |
77,674,873 |
56,285,624 |
|
Other current assets |
267,003,937 |
247,399,561 |
238,620,796 |
|
|
|
|
|
|
Total Current Assets |
17,432,631,111 |
16,313,785,483 |
16,611,817,945 |
|
|
|
|
|
|
Investment in subsidiaries |
816,768,682 |
381,768,829 |
379,268,829 |
|
Property,
plant and equipment |
30,294,384,686 |
27,019,562,159 |
23,632,147,912 |
|
Investments
properties |
112,498,502 |
112,866,009 |
112,866,009 |
|
Leasehold rights |
1,994,363,880 |
1,835,478,518 |
1,335,527,375 |
|
Other
intangible assets |
1,146,003,461 |
1,086,141,944 |
669,296,244 |
|
Deferred tax assets |
301,083,362 |
259,654,808 |
279,843,006 |
|
Other
non-current assets |
268,087,662 |
62,687,477 |
18,612,813 |
|
Total Assets |
52,365,821,346 |
47,071,945,227 |
43,039,380,133 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Short-term
loans from financial institutions |
3,080,000,000 |
2,180,000,000 |
3,000,000,000 |
|
Trade accounts payable
to |
|
|
|
|
Other parties |
23,147,906,280 |
21,461,951,571 |
20,102,940,647 |
|
Related parties |
1,193,547,330 |
584,719,821 |
379,772,227 |
|
Other payables to
other parties |
1,185,586,146 |
1,317,229,782 |
1,616,080,444 |
|
Other payables
to related parties |
156,032,945 |
112,249,155 |
116,295,017 |
|
Short-term borrowing from subsidiary |
405,000,000 |
25,000,000 |
- |
|
Income tax payable |
539,248,633 |
573,927,783 |
596,920,816 |
|
Accrued expenses |
1,330,623,024 |
1,463,792,758 |
1,376,545,295 |
|
Current
portion of long-term
Borrowings from
financial institution |
2,000,000,000 |
- |
- |
|
Current portion of
finance lease liabilities |
101,129,260 |
80,187,197 |
60,800,249 |
|
Others current liabilities |
413,935,498 |
301,802,234 |
310,156,624 |
|
|
|
|
|
|
Total Current Liabilities |
33,553,009,116 |
28,100,860,301 |
27,559,511,319 |
|
Long-term borrowings
from financial institution |
2,000,000,000 |
4,000,000,000 |
2,000,000,000 |
|
Finance lease liabilities |
744,891,779 |
524,822,451 |
477,979,201 |
|
Employee
benefits obligations |
514,092,965 |
451,878,947 |
383,602,023 |
|
Other
non-current liabilities |
142,164,084 |
32,380,230 |
33,644,745 |
|
Total Liabilities |
36,954,157,944 |
33,109,941,929 |
30,454,737,288 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share capital |
|
|
|
|
Authorised share
capital |
2,400,000,000 |
2,400,000,000 |
2,400,000,000 |
|
Issued and
paid-up share capital |
2,400,000,000 |
2,400,000,000 |
2,400,000,000 |
|
Premium on
share capital |
3,290,152,068 |
3,290,152,068 |
3,290,152,068 |
|
Retained
earnings |
|
|
|
|
Appropriated Legal reserve |
240,000,000 |
240,000,000 |
240,000,000 |
|
Unappropriated |
9,481,511,334 |
8,031,851,230 |
6,654,490,777 |
|
Total Shareholders'
Equity |
15,411,663,402 |
13,962,003,298 |
12,584,642,845 |
|
Total
Liabilities and Shareholders' Equity |
52,365,821,346 |
47,071,945,227 |
43,039,380,133 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2016 |
2015 |
2014 [Restated] |
|
|
|
|
|
|
Revenue from sale of goods |
166,896,018,939 |
150,568,158,642 |
137,725,576,676 |
|
Revenue from rendering
of services |
2,867,746,215 |
2,614,525,378 |
2,559,042,336 |
|
Other income |
737,529,520 |
735,688,768 |
708,053,827 |
|
Total Revenues |
170,501,294,674 |
153,918,372,788 |
140,992,672,839 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of sales
of goods |
151,865,672,093 |
136,304,071,948 |
125,521,474,176 |
|
Selling
expenses |
9,642,105,443 |
8,787,978,998 |
7,403,988,586 |
|
Administrative
expenses |
2,071,722,841 |
1,850,759,153 |
1,755,025,764 |
|
Total Expenses |
163,579,500,377 |
146,942,810,099 |
134,680,488,526 |
|
|
|
|
|
|
Profit before finance
costs and income tax |
6,921,794,297 |
6,975,562,689 |
6,312,184,313 |
|
Finance costs |
[271,600,172] |
[228,604,229] |
[161,915,528] |
|
Profit before income
tax |
6,650,194,125 |
6,746,958,460 |
6,150,268,785 |
|
Income Tax |
[1,302,612,721] |
[1,409,167,700] |
[1,269,407,097] |
|
Net Income for
the Year |
5,347,581,404 |
5,337,790,760 |
4,880,861,688 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
|
|
|
|
|
|
|
LIQUIDITY
RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.52 |
0.58 |
0.60 |
|
QUICK RATIO |
TIMES |
0.07 |
0.08 |
0.17 |
|
|
|
|
|
|
|
ACTIVITY
RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.60 |
5.67 |
5.94 |
|
TOTAL ASSETS TURNOVER |
TIMES |
3.24 |
3.25 |
3.26 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
30.99 |
33.10 |
29.51 |
|
INVENTORY TURNOVER |
TIMES |
11.78 |
11.03 |
12.37 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
0.18 |
0.11 |
0.20 |
|
RECEIVABLES TURNOVER |
TIMES |
2,040.17 |
3,358.69 |
1,852.16 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
55.63 |
57.47 |
58.46 |
|
CASH CONVERSION CYCLE |
DAYS |
(24.46) |
(24.26) |
(28.75) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
89.46 |
88.98 |
89.48 |
|
SELLING & ADMINISTRATION |
% |
6.90 |
6.95 |
6.53 |
|
INTEREST |
% |
0.16 |
0.15 |
0.12 |
|
GROSS PROFIT MARGIN |
% |
10.98 |
11.50 |
11.03 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.08 |
4.55 |
4.50 |
|
NET PROFIT MARGIN |
% |
3.15 |
3.48 |
3.48 |
|
RETURN ON EQUITY |
% |
34.70 |
38.23 |
38.78 |
|
RETURN ON ASSET |
% |
10.21 |
11.34 |
11.34 |
|
EARNING PER SHARE |
BAHT |
222.82 |
222.41 |
203.37 |
|
|
|
|
|
|
|
LEVERAGE
RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.71 |
0.70 |
0.71 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.40 |
2.37 |
2.42 |
|
TIME INTEREST EARNED |
TIMES |
25.49 |
30.51 |
38.98 |
|
|
|
|
|
|
|
ANNUAL
GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
10.82 |
9.19 |
|
|
OPERATING PROFIT |
% |
(0.77) |
10.51 |
|
|
NET PROFIT |
% |
0.18 |
9.36 |
|
|
FIXED ASSETS |
% |
12.12 |
14.33 |
|
|
TOTAL ASSETS |
% |
11.25 |
9.37 |
|
ANNUAL
GROWTH : IMPRESSIVE
An annual sales growth is 10.82%. Turnover has increased from
THB 153,182,684,020.00 in 2015 to THB 169,763,765,154.00 in 2016. While net
profit has increased from THB
PROFITABILITY
: IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
10.98 |
Impressive |
Industrial
Average |
- |
|
Net Profit Margin |
3.15 |
Satisfactory |
Industrial
Average |
3.79 |
|
Return on Assets |
10.21 |
Impressive |
Industrial
Average |
7.17 |
|
Return on Equity |
34.70 |
Impressive |
Industrial
Average |
14.49 |
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 10.98%. 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 3.15%. When compared with the industry average, the ratio of the
company was lower.
Return on Assets measures how efficiently profits are being
generated from the assets employed in the business when compared with the
ratios of firms in a similar business. A low ratio in comparison with industry
averages indicates an inefficient use of business assets. Return on Assets
ratio is 10.21%, 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 34.7%, 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
: ACCEPTABLE
LIQUIDITY
RATIO
|
Current Ratio |
0.52 |
Risky |
Industrial
Average |
0.52 |
|
Quick Ratio |
0.07 |
|
|
|
|
Cash Conversion Cycle |
(24.46) |
|
|
|
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, decrease from 0.58 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 0.07
times in 2016, decrease from 0.08 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 -25 days.
Trend
of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE
: ACCEPTABLE
LEVERAGE
RATIO
|
Debt Ratio |
0.71 |
Acceptable |
Industrial
Average |
0.49 |
|
Debt to Equity Ratio |
2.40 |
Risky |
Industrial
Average |
0.94 |
|
Times Interest Earned |
25.49 |
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 25.49 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 0.71 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
: IMPRESSIVE
ACTIVITY
RATIO
|
Fixed Assets Turnover |
5.60 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
3.24 |
Impressive |
Industrial
Average |
1.89 |
|
Inventory Conversion Period |
30.99 |
|
|
|
|
Inventory Turnover |
11.78 |
Satisfactory |
Industrial
Average |
17.32 |
|
Receivables Conversion Period |
0.18 |
|
|
|
|
Receivables Turnover |
2,040.17 |
Impressive |
Industrial
Average |
72.64 |
|
Payables Conversion Period |
55.63 |
|
|
|
The company's Account Receivable Ratio is calculated as
2,040.17 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 33 days at the
end of 2015 to 31 days at the end of 2016. This represents a positive trend.
And Inventory turnover has increased from 11.03 times in year 2015 to 11.78
times in year 2016.
The company's Total Asset Turnover is calculated as 3.24
times and 3.25 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 Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.13 |
|
|
1 |
INR 89.17 |
|
Euro |
1 |
INR 79.39 |
|
THB |
1 |
INR 2.04 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRA |
|
|
|
|
Report Prepared
by : |
TRU |
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.