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|
|
MIRA INFORM REPORT
|
Report No. : |
487231 |
|
Report Date : |
23.01.2018 |
IDENTIFICATION DETAILS
|
Name : |
THAI RAYON PUBLIC
COMPANY LIMITED |
|
|
|
|
Registered Office : |
16th Floor, Mahatun
Plaza Building, 888/160-1
Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2017 |
|
|
|
|
Date of Incorporation : |
13.02.1974 |
|
|
|
|
Com. Reg. No.: |
0107536001125 [Former: BOR.MOR.JOR.186] |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
The subject’s activity
is a manufacturer of
Viscose Rayon Staple
Fiber with size
from 0.9-5.5 denier
and length from
32 mm.-120 mm., for garment
& home textile, wipes,
dress materials, knitwear,
personal hygiene and
medical industries, as
well as Anhydrous Sodium
Sulphate, as by-product,
supply to detergent,
glass, paper pulp,
leather goods, cement
and textile industries. |
|
|
|
|
No. of Employees : |
912 |
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 sustained strong growth and 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.
Growth has slowed in the last few years, however, due to domestic
political turmoil and sluggish global demand. Nevertheless, 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, Thailand faces labor shortages, and domestic debt
levels, political uncertainty, and an aging population pose risks to growth.
|
Source
: CIA |
Company
name
THAI RAYON PUBLIC
COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 16TH FLOOR,
MAHATUN PLAZA BUILDING,
888/160-1
PLOENCHIT ROAD, LUMPINI, PATHUMWAN, BANGKOK
10330, THAILAND
TELEPHONE : [66] 2253-6745-54
FAX : [66] 2254-3181
E-MAIL ADDRESS : kumaresh.v@adityabirla.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1974
REGISTRATION NO. : 0107536001125 [Former:
BOR.MOR.JOR.186]
TAX ID NO. : 3101021226
CAPITAL REGISTERED : BHT.
201,600,000
CAPITAL PAID-UP : BHT.
201,600,000
FISCAL YEAR CLOSING
DATE : MARCH
31
LEGAL STATUS : PUBLIC LIMITED COMPANY
EXECUTIVE : DR. BIR KAPOOR,
INDIAN GROUP EXECUTIVE
PRESIDENT
NO. OF STAFF : 912
LINES OF BUSINESS : VISCOSE
RAYON STAPLE FIBER
AND
ANHYDROUS
SODIUM SULPHATE
MANUFACTURER, DISTRIBUTOR AND
EXPORTER
|
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 February
13, 1974 as
a private limited
company under the
registered name “Thai
Rayon Co. Ltd.” by Thai-Indian
groups. It received
the technical know
how for plant
and machinery from
Grasim Industries Limited,
India.
Being a joint
venture between the
world renowned Birla
Group of Industries,
India and leading
businessmen in Thailand,
the subject received
promotional privileges from
the Board of
Investment in 1974. The subject
is the only
manufacturer of Viscose
Rayon Staple Fiber [VRSF] in Thailand, VRSF is the
main raw material
in manufacturing woven
textile products.
On September 21,
1984, the subject
was listed on
the Stock Exchange
of Thailand and
its status was
converted to a
public limited company
on October 4,
1993 under the
name THAI RAYON PUBLIC
COMPANY LIMITED. It
currently employs 912
staff.
It achieved the
standard ISO 9002, ISO 9001 : 2000 and
ISO 14001 certification, as
well as has been
awarded TPM Excellence Award
from JIPM of
Japan in March 2007.
The subject’s registered
address is 16th Floor,
Mahatun Plaza Building,
888/160-1 Ploenchit Rd.,
Lumpini, Pathumwan, Bangkok 10330, and
this is the
subject’s current operation
address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kumar Mangalam Birla |
|
Indian |
51 |
|
Mrs. Rajashree Birla |
|
Indian |
73 |
|
Mr. Shyam Sundar Mahansaria |
|
Indian |
83 |
|
Mr. Vinai Sachdev |
|
Thai |
88 |
|
Mr. Prabhu Narain Mathur |
|
Indian |
- |
|
Mr. Dilip Singh Gaur |
|
Indian |
61 |
|
Dr. Bir Kapoor |
|
Indian |
54 |
AUTHORIZED PERSON
Any two of
the above mentioned
directors can jointly sign
on behalf of
the subject with
the company’s affixed.
MANAGEMENT
Dr. Bir Kapoor is
the Group Executive
President.
He is Indian
nationality with the
age of 54
years old.
Mr. Prasan Kumar Sipani is
the President.
He is Indian
nationality.
Mr. Suresh Sundaram
is the Senior
Vice President [Technical].
He is Indian
nationality.
Mr. Sanjeev Kumar
Kaul is the
Vice President [Engineering].
He is Indian
nationality.
Mr. Pramod Khandelwal is
the Vice President
[Finance & Commercial].
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
of Viscose Rayon
Staple Fiber with
size from 0.9-5.5
denier and length
from 32 mm.-120 mm., for
garment & home textile,
wipes, dress materials,
knitwear, personal hygiene
and medical industries, as
well as Anhydrous Sodium
Sulphate, as by-product,
supply to detergent,
glass, paper pulp,
leather goods, cement
and textile industries.
MAJOR BRAND
“BIRLA CELLULOSE”
PRODUCTION CAPACITY:
Viscose Rayon Staple
Fiber : 124,225 metric
tons per year
Anhydrous Sodium Sulphate [By-Product] : 98,027 metric
tons per year
The subject also
invests in subsidiaries
and affiliated companies,
operate in the
field of rayon
& textile, carbon
black and chemical
industries.
PURCHASE
60% of raw materials
such as dissolving
grade wood pulp, sulphur, caustic soda, carbon
di-sulphate and charcoal
are imported from United States of America, Canada, Indonesia, Finland, Sweden,
South Africa, Republic of
China, Singapore, Taiwan,
India, Malaysia and others with over 30 countries worldwide.
The remaining 40% is purchased
from local suppliers.
MAJOR SUPPLIERS
AV Cell Inc., : Canada
Grasim Industries Ltd.
: India
Thai Carbon Black
Public Company Limited :
Thailand
Domsja Fabriker AB. : Sweden
EXPORT [COUNTRIES]
70% of the
products is exported
to over 30
worldwide countries, such
as United States
of America, Indonesia,
South Korea, Philippines,
Mexico, South Africa, Taiwan, Turkey, Pakistan,
Vietnam, India, Laos,
Malaysia, Myanmar, U.A.E.,
Sri Lanka, Singapore, Brazil
and the countries
in Europe.
SALES [LOCAL]
30% of its products is
sold locally to
manufacturers, wholesalers and
end-users.
MAJOR CUSTOMERS
Thai Polyphosphate and
Chemicals Co., Ltd. :
Thailand
Indo-Thai Synthetic Co., Ltd. : Thailand
REVENUE STRUCTURE [Company]
[Unit : Million
Baht]
|
|
Mar. 31, 2017 |
Mar. 31, 2016 |
||
|
Products |
Amount |
% |
Amount |
% |
|
Viscose Rayon Staple
Fiber |
|
|
|
|
|
- Domestic sales |
1,655 |
18 |
1,922 |
21 |
|
- Export |
7,027 |
76 |
6,761 |
73 |
|
Anhydrous Sodium Sulphate |
346 |
4 |
405 |
4 |
|
Other revenue |
200 |
2 |
204 |
2 |
|
|
|
|
|
|
|
Total Revenue |
9,228 |
100.00 |
9,292 |
100.00 |
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.
SUBSIDIARY/ RELATED COMPANIES
Dissolving Grade Wood
Pulp Business:
AV Terrace Bay
Inc.
Business Type : Manufacture
of paper pulp
Investment : 60%
of shareholding
AV Cell Inc.
Business Type: Manufacture
of paper pulps
Investment : 19%
of shareholding
AV Nackawic Inc.
Business Type: -
Investment : 19%
of shareholding
Birla Laos Pulp
and Plantation Co.,
Ltd.
Business Type : Manufacture
of acrylic fiber
Investment : 49.5%
of shareholding
Aditya Group AB.
Business Type : Holding
company
Investment : 33.33%
of shareholding
Viscose Staple Fibre
Business:
Birla Jingwei Fibres
Company Limited
Business Type : Manufacture
of rayon
Investment : 42.53%
of shareholding
Aditya Birla Elyaf
Sanayi Ve Ticaret
Anonim Sirketi
Business Type : -
Investment : 33.33%
of shareholding
Yarn Business:
PT Indo Liberty
Textile
Business Type : Manufacture
of acrylic fiber
Investment : 7.56%
of shareholding
Indo-Thai Synthetics Co.,
Ltd.
Business Type : -
Investment : 40%
of shareholding
Acrylic Fiber Business:
Thai Acrylic Fiber
Co., Ltd.
Business Type : Manufacture
of acrylic fiber
Investment : 30%
of shareholding
Alexandria Fiber Co.,
S.A.E.
Business Type : -
Investment : 14.4%
of shareholding
Chemical Products &
Carbon Black Business:
Thai Carbon Black
Public Company Limited
Business Type : Manufacture
of carbon black
Investment : 24.98%
of shareholding
Aditya Birla Chemicals
(Thailand) Co., Ltd.
Business Type : Manufacturer
of chemical
Investment : 29.98%
of shareholding
Thai Polyphosphate and
Chemicals Co., Ltd.
Business Type : Holding
and investment
Investment : 49%
of shareholding
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
Bangkok Bank Public
Company Limited
[Head Office : 333
Silom Rd., Silom,
Bangrak, Bangkok 10500]
The Siam Commercial
Bank Public Company
Limited
[Head Office : 9
Ratchadapisek Rd., Ladyao,
Jatujak, Bangkok 10900]
Krung Thai bank
Public Company Limited
Mizuho Corporate Bank
Ltd.
Thanachart Bank Public
Company Limited
Citibank N.A.
Indian Overseas Bank
EMPLOYMENT
The subject currently
employs 912 staff.
[office, sales staff
and factory workers]
LOCATION DETAILS
The premise is
rented for administrative office at the
heading address. Premise is
located in commercial
area
Factory I and
Warehouse:
- 36 Moo
2 Ayuthya-Angthong Highway,
T. Posa, A.
Muang, Angthong 14000
Tel. [66]
35 611-227-30 Fax
[66] 35 611-908.
Factory II and
Warehouse
- 19 Moo
7, Nongplakradi Rd.,
T. Nongplamor, A. Nongkae, Saraburi
18140
COMMENT
The company has successfully established
its presence in high
end Modal Fiber market
internationally and expanded
its export base. Demand for
Modal Fiber continues
to grow in
textile hubs of
China and Turkey
due to its strength and soft feel.
Modal is used
as an exclusive fiber for women wear
and also blended with
cotton for various
premium apparel.
Over the year 2015-2016 the
company has expanded
business both within
and beyond Thailand
by way of
backward and forward
integration. The company
has been making
continuous efforts to
improve productivity and quality
of its products to
cater to high end
markets.
Despite a decrease
in sales income
as of March
31, 2017, the subject obtained
an increase in
dividend and gain
on exchange rate
which generated higher
total revenues with
higher net profit
comparing to the
previous year. Generally,
its business remains
strong and profitable.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 3,000,000 with
fully paid.
The capital was
increased later as
followings:
Bht. 73,500,000 in
1974
Bht. 98,000,000
in 1975
Bht. 112,000,000 in
1990
Bht. 201,600,000 in
1993
The latest capital
was increased to
Bht. 201,600,000 divided
into 201,600,000 shares
of Bht. 1
each with fully
paid.
MAIN SHAREHOLDERS : [as at
June 12, 2017]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Asseau Company Limited |
33,582,850 |
16.66 |
|
Wholton Company Limited |
22,165,700 |
10.99 |
|
Oneida Services Limited |
21,600,000 |
10.71 |
|
Grasim Industries Limited |
13,988,570 |
6.94 |
|
Thai Industrial Management
& Trading Co.,
Ltd. |
9,738,500 |
4.83 |
|
Rama Trading Co.,
Ltd. |
6,645,580 |
3.30 |
|
Mr. Kamol Pichitsingh |
5,925,700 |
2.94 |
|
Ms. Sanita Kajiji |
4,901,385 |
2.43 |
|
Mrs. Silika Maskati |
4,901,385 |
2.43 |
|
Ms. Vanida Takral |
4,892,040 |
2.43 |
|
Mr. Amorn Panijkaiwalkosin |
3,640,740 |
1.81 |
|
Thai NVDR Co.,
Ltd. |
3,454,200 |
1.71 |
|
Korres [Thailand] Limited |
3,275,230 |
1.62 |
|
Mr. Jaiman Takral |
2,946,520 |
1.46 |
|
Mrs. Rasmi Takral |
2,946,020 |
1.46 |
|
Mr. Mohansingh Takral |
2,945,020 |
1.46 |
|
HSBC [Singapore] Nominees
Pte. Ltd. |
2,889,100 |
1.43 |
|
Others |
51,161,460 |
25.39 |
Total Shareholders :
1,349 [including the above shareholders]
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Narong Pantawong No.
3315
BALANCE SHEET [BAHT]
The latest financial
figures published for March
31, 2017, 2016
and 2015 were:
ASSETS
|
Current Assets |
2017 |
2016 |
2015 [Restated] |
|
|
|
|
|
|
Cash and cash
equivalents |
220,271,175 |
5,437,662 |
289,020,079 |
|
Current investments |
1,882,050,000 |
170,000,000 |
1,285,000,000 |
|
Trade and other
receivables |
1,111,391,917 |
1,276,255,499 |
914,784,129 |
|
Short-term loan to related
party |
76,961,250 |
78,694,875 |
- |
|
Current portion of long-term
loan to Related party |
114,800,400 |
524,632,500 |
- |
|
Inventories
|
1,923,393,456 |
1,735,152,434 |
1,408,074,405 |
|
Other Current Assets |
96,964,639 |
161,804,841 |
156,306,418 |
|
|
|
|
|
|
Total Current Assets
|
5,425,832,837 |
3,951,977,811 |
4,053,185,031 |
|
Non-current Assets |
|
|
|
|
Investment in subsidiary |
1,288,623,993 |
1,288,623,993 |
1,288,623,993 |
|
Investments in
associated |
4,790,441,004 |
5,115,779,082 |
5,210,809,137 |
|
Advance payment
for long-term investment |
12,142,950 |
- |
- |
|
Other long-term
investments |
2,530,604,899 |
2,136,655,832 |
2,040,849,659 |
|
Long-term loans to
related parties |
- |
120,498,300 |
611,624,400 |
|
Property,
plant and equipment |
3,285,156,685 |
3,422,542,049 |
3,246,426,270 |
|
Intangible assets |
- |
- |
315,343 |
|
Deferred tax assets |
29,739,178 |
182,379,976 |
300,859,852 |
|
Other non-current
assets |
2,495,557 |
2,851,424 |
2,240,022 |
|
Total non-current
Assets |
11,939,204,266 |
12,269,330,656 |
12,701,748,676 |
|
Total Assets |
17,365,037,103 |
16,221,308,467 |
16,754,933,707 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current Liabilities |
2017 |
2016 |
2015 [Restated] |
|
|
|
|
|
|
Short-term loan from
financial institution |
443,394,447 |
917,411,866 |
2,255,120,380 |
|
Trade and other
payable |
1,135,887,224 |
856,651,223 |
625,812,380 |
|
Other current liabilities |
71,722,429 |
33,178,704 |
16,058,790 |
|
|
|
|
|
|
Total Current Liabilities |
1,651,004,100 |
1,807,241,793 |
2,896,991,550 |
|
Provision for long-term
employee benefit |
145,880,716 |
121,135,265 |
126,678,272 |
|
Deferred tax liabilities |
374,069,810 |
289,156,863 |
261,801,886 |
|
Total Liabilities |
2,170,954,626 |
2,217,533,921 |
3,285,471,708 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share capital |
|
|
|
|
Registered, Issued
and fully paid 201,600,000 ordinary shares of Baht 1 each |
201,600,000 |
201,600,000 |
201,600,000 |
|
Issued and
fully paid |
|
|
|
|
201,600,000 ordinary shares of
Baht 1
each |
201,600,000 |
201,600,000 |
201,600,000 |
|
Retained Earning Appropriated Statutory reserve
|
20,160,000 |
20,160,000 |
20,160,000 |
|
General reserve |
2,500,000,000 |
2,500,000,000 |
2,500,000,000 |
|
Unappropriated |
11,338,546,772 |
10,463,398,095 |
10,005,730,486 |
|
Other components of
shareholder’s equity |
1,133,775,705 |
818,616,451 |
741,971,513 |
|
Total Shareholders' Equity |
15,194,082,477 |
14,003,774,546 |
13,469,461,999 |
|
Total Liabilities and
Shareholders' Equity |
17,365,037,103 |
16,221,308,467 |
16,754,933,707 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2017 |
2016 |
2015 [Restated] |
|
|
|
|
|
|
Sales income |
9,080,184,050 |
9,222,832,688 |
7,718,190,391 |
|
Gains on exchange
|
87,966,768 |
- |
39,567,962 |
|
Dividend income |
154,045,762 |
80,852,992 |
87,656,243 |
|
Other income |
49,542,757 |
63,883,014 |
102,757,807 |
|
Total Revenues |
9,371,739,337 |
9,367,568,694 |
7,948,172,403 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of sales
|
7,587,770,368 |
8,178,178,767 |
7,957,241,662 |
|
Selling expenses |
280,501,834 |
285,994,987 |
349,955,301 |
|
Administrative expenses |
182,064,399 |
158,177,894 |
161,077,836 |
|
Impairment loss on
investment |
- |
110,807,355 |
279,794,442 |
|
Loss from return of
investment in the associate which
reduced capital |
103,189,819 |
- |
- |
|
Losses on exchange |
- |
5,994,361 |
- |
|
Total Expenses |
8,153,526,420 |
8,739,153,364 |
8,748,069,241 |
|
|
|
|
|
|
Income before finance
cost and Income tax
expenses |
1,218,212,917 |
628,415,330 |
[799,896,838] |
|
Finance cost |
[6,619,606] |
[33,994,108] |
[29,948,999] |
|
|
|
|
|
|
Profit before income
tax expenses |
1,211,593,311 |
594,421,222 |
[829,845,837] |
|
Income tax expenses |
[177,518,473] |
[126,673,618] |
126,561,225 |
|
|
|
|
|
|
Net Profit / [Loss] |
1,034,074,838 |
467,747,604 |
[703,284,612] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2017 |
2016 |
2015 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
3.29 |
2.19 |
1.40 |
|
QUICK RATIO |
TIMES |
2.06 |
1.14 |
0.86 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.76 |
2.69 |
2.38 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.52 |
0.57 |
0.46 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
92.52 |
77.44 |
64.59 |
|
INVENTORY TURNOVER |
TIMES |
3.94 |
4.71 |
5.65 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
44.68 |
50.51 |
43.26 |
|
RECEIVABLES TURNOVER |
TIMES |
8.17 |
7.23 |
8.44 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
54.64 |
38.23 |
28.71 |
|
CASH CONVERSION CYCLE |
DAYS |
82.56 |
89.72 |
79.14 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
83.56 |
88.67 |
103.10 |
|
SELLING & ADMINISTRATION |
% |
5.09 |
4.82 |
6.62 |
|
INTEREST |
% |
0.07 |
0.37 |
0.39 |
|
GROSS PROFIT MARGIN |
% |
19.65 |
12.90 |
(0.12) |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
13.42 |
6.81 |
(10.36) |
|
NET PROFIT MARGIN |
% |
11.39 |
5.07 |
(9.11) |
|
RETURN ON EQUITY |
% |
6.81 |
3.34 |
(5.22) |
|
RETURN ON ASSET |
% |
5.95 |
2.88 |
(4.20) |
|
EARNING PER SHARE |
BAHT |
5.13 |
2.32 |
(3.49) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.13 |
0.14 |
0.20 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.14 |
0.16 |
0.24 |
|
TIME INTEREST EARNED |
TIMES |
184.03 |
18.49 |
(26.71) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(1.55) |
19.49 |
|
|
OPERATING PROFIT |
% |
93.85 |
(178.56) |
|
|
NET PROFIT |
% |
121.08 |
166.51 |
|
|
FIXED ASSETS |
% |
(4.01) |
5.42 |
|
|
TOTAL ASSETS |
% |
7.05 |
(3.18) |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is -1.55%. Turnover has decreased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
19.65 |
Impressive |
Industrial Average |
- |
|
Net Profit Margin |
11.39 |
Impressive |
Industrial Average |
4.75 |
|
Return on Assets |
5.95 |
Impressive |
Industrial Average |
4.46 |
|
Return on Equity |
6.81 |
Satisfactory |
Industrial Average |
7.33 |
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 19.65%. When
compared with the industry average, the ratio of the company was higher,
indicated that company was more profitable than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. Net Profit Margin ratio is 11.39%,
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
5.95%, 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. When compared with the
industry average, it was lower, the company's figure is 6.81%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
3.29 |
Impressive |
Industrial Average |
1.03 |
|
Quick Ratio |
2.06 |
|
|
|
|
Cash Conversion Cycle |
82.56 |
|
|
|
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 3.29 times in 2017, increase from 2.19 times, then it is generally
considered to have good short-term financial strength. When compared with the
industry average, the ratio of the company was higher, indicated that company
was an efficient operator in a dominant position within its industry.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 2.06 times in 2017,
increase from 1.14 times, although excluding inventory so the company still
have good short-term financial strength.
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 83 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.13 |
Impressive |
Industrial Average |
0.36 |
|
Debt to Equity Ratio |
0.14 |
Impressive |
Industrial Average |
0.56 |
|
Times Interest Earned |
184.03 |
Impressive |
Industrial Average |
- |
Debt to Equity Ratio a measurement of how much suppliers, lenders,
creditors and obligors have committed to the company versus what the
shareholders have committed. A lower the percentage means that the company is
using less leverage and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 184.04 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 0.13 less than 0.5, most of the company's
assets are financed through equity.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Stable
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.76 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.52 |
Satisfactory |
Industrial Average |
0.94 |
|
Inventory Conversion Period |
92.52 |
|
|
|
|
Inventory Turnover |
3.94 |
Satisfactory |
Industrial Average |
6.23 |
|
Receivables Conversion Period |
44.68 |
|
|
|
|
Receivables Turnover |
8.17 |
Impressive |
Industrial Average |
6.90 |
|
Payables Conversion Period |
54.64 |
|
|
|
The company's Account Receivable Ratio is calculated as 8.17 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 increased from 77 days at the
end of 2016 to 93 days at the end of 2017. This represents a negative trend.
And Inventory turnover has decreased from 4.71 times in year 2016 to 3.94 times
in year 2017.
The company's Total Asset Turnover is calculated as 0.52 times and 0.57
times in 2017 and 2016 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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.89 |
|
|
1 |
INR 88.60 |
|
Euro |
1 |
INR 78.12 |
|
Thai Baht |
1 |
INR 2.00 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.