|
|
|
MIRA INFORM REPORT
|
Report No. : |
495464 |
|
Report Date : |
07.03.2018 |
IDENTIFICATION DETAILS
|
Name : |
SMC CORPORATION LIMITED |
|
|
|
|
Registered Office : |
66/2 Moo 15, Chonprathan Fangsai Road, T. Takhram-En, A. Thamaka, Kanchanaburi 71130 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2016 |
|
|
|
|
Date of Incorporation : |
15.03.1988 |
|
|
|
|
Com. Reg. No.: |
0715531000051 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject is engaged in manufacturing service wide
range of plastic moulds
and injection machinery
such as standard blow,
high speed blow, large
blow, injection technology
blow and as
well as after
sales service. |
|
|
|
|
No. of Employees : |
200 |
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 (30.09.2017) |
Current Rating (31.12.2017) |
|
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
SMC CORPORATION LIMITED
SUMMARY
BUSINESS
ADDRESS : 66/2
MOO 15, CHONPRATHAN
FANGSAI ROAD,
T.
TAKHRAM-EN, A. THAMAKA,
KANCHANABURI 71130,
THAILAND
TELEPHONE : [66] 34
561-992, 34 562-359,
34 562-299
FAX
:
[66] 34
561-991
E-MAIL
ADDRESS : sales@smccorp.co.th
info@smccorp.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1988
REGISTRATION
NO. : 0715531000051 [Former : KOR
JOR. 113]
TAX
ID NO. : 3721001493
CAPITAL REGISTERED : BHT. 10,000,000
CAPITAL PAID-UP : BHT.
10,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. ANUCHIT BOONTHONG,
THAI
PRESIDENT
NO.
OF STAFF : 200
LINES
OF BUSINESS : PLASTIC MOULD
AND INJECTION MACHINES
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE
PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on March 15, 1988 as a
private limited company
under the registered name SMC CORPORATION LIMITED
by Thai groups, to
manufacture and service of plastic mould
and injection machines to
both domestic and international markets.
It currently employs
approximately 200 staff.
The
subject’s registered address
is 66/2 Moo
15, Chonprathan Fangsai
Rd.,
T.
Takhram-en, A. Thamaka, Kanchanaburi
71130, and the
subject’s operation address
was at 250
Soi Noppakao 5,
Prachachuen Rd., Bangsue,
Dusit, Bangkok 10800.
In
2015, its operating
address number has
been changed from
“250” to “243” Soi
Noppakao 5, Prachachuen
37 Rd., Bangsue,
Dusit, Bangkok 10800, by the
Dusit District Office,
which actually are
the same location.
In
November 2016, its
operating address has
been moved to
the registered address
at 66/2 Moo
15, Chonprathan Fangsai
Rd., T. Takhram-en, A. Thamaka,
Kanchanaburi
71130.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Anuchit Boonthong |
[x] |
Thai |
71 |
|
Mr. Payont Rakkarn-ngan |
[x] |
Thai |
69 |
|
Ms. Monticha Rakkarn-ngan |
|
Thai |
40 |
|
Ms. Kulnatda Boonthong |
|
Thai |
38 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Anuchit Boonthong is
the President.
He is Thai
nationality with the
age of 71 years
old.
Mr. Payont Rakkarn-ngan is
the Managing Director
& Factory Manager.
He is Thai
nationality with the
age of 69 years
old.
Ms. Monticha Rakkarn-ngan is
the Sales & Marketing Manager.
She is Thai
nationality with the
age of 40
years old.
Mrs. Oraphan Boonthong is
the General Manager & Human Resources Manager.
She is Thai
nationality.
Ms. Kulnatda Boonthong is
the Administration Manager.
She is Thai
nationality with the
age of 38 years
old.
BUSINESS OPERATIONS
The subject is engaged in manufacturing service wide
range of plastic moulds
and injection machinery
such as standard blow,
high speed blow, large
blow, injection technology
blow and etc.,
as well as
after sales service.
BRAND NAME
“SMC”
PURCHASE
70% of raw materials
and components are
purchased from local
suppliers, the remaining
30% is imported
from Taiwan, Republic of
China, Singapore, Malaysia,
U.S.A., India, Japan,
Italy, Germany and
etc.
SALES
The products
are sold and
serviced through agents
of both domestic
and overseas. 80%
of the products is
exported to over
60 countries worldwide such
as Indonesia, Philippines, Malaysia,
Egypt, Germany, Australia, Bangladesh, Russia, Iran, Poland,
Columbia, Argentina, Nigeria, United Kingdom, Mexico, Sri Lanka, Vietnam, South
Africa, Czech Republic,
Hungary, India and
etc., and the
remaining 20% is
sold locally.
SOLE AGENTS
Remtron Automation
Pty. Ltd. : Australia
Wideways Enterprise : Bangladesh
El Mina
Trading Co. : Egypt
BBM Engineering
GmbH. : Germany
P.T. Mitra
Guna Mulia Engineering : Indonesia
Keng Cheong
Trading Co. Sdn. Bhd. : Malaysia
Raymond Enterprises : Philippines
SMC (Russia)
Co., Ltd. : Russia
Siroco Ltd. : Columbia
Thomas & Co. : Argentina
Yanco Ltd. : Nigeria
P & F Wartacz
Company : Poland
Yanco Ltd. : U.K.
Behin Tejarat
Asia Company (Behta Co) : Iran
A P I Trades
(Pvt.) Limited : Sri
Lanka
Maritime Marketing
C. C. : South
Africa
An Lac
Phat Co., Ltd. (Alphaco) : Vietnam
Ningbomaq S.A.
de C.V. : Mexico
SUBSIDIARY AND AFFILIATED
COMPANY
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
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 30-60-90 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
or on the
credits term of
30-60 days & T/T.
Exports are against
L/C at sight
& T/T.
BANKING
Bangkok Bank Public
Company Limited
[Prachachuen Branch
: 1333 Prachachuen
Rd., Bangsue, Bangkok]
Bank of Ayudhya
Public Company Limited
[Karnchanaburi Branch
: 73/18 U-Thong
Rd., Bannua, Muang,
Karnchanaburi]
EMPLOYMENT
The
subject employs approximately 200
staff.
LOCATION
DETAILS
The
premise is owned for administrative office,
factory and warehouse
at the heading
address. Premise is
located in provincial.
Bangkok
branch office is
located at 243
Soi Noppakao 5, Prachachuen
37 Rd.,
Bangsue,
Bangkok 10800. Tel. [66]
2910-1400-8, Fax. [66]
2586-8390.
Other
warehouse is located
at 532/5 Chonprathan
Fangsai Rd., T. Tharua,
A. Thamaka,
Kanchanaburi
71120.
Note:
Refer
to your given
the subject’s address
at 243 Prachachuen
37 Rd., Bangsue,
Dusit, Bangkok 10800, please
be informed that
it is the
Bangkok branch office.
COMMENT
The
company is a manufacturer, distributor and exporter of plastic mould and injection
machines. Its products are
mainly served to industrial sector and subject’s business
performance closely links
with the condition of
the industry. Its
operating performance in
2016 has seen an
improvement from an
increase in sales
or service income
and net profit comparing
to the pervious
year mainly due
a recovery and
growth of some
industries which accelerated
high demand of
the products in
the past year.
Generally, it operates
a moderate business
with net profit
for three consecutive
years.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 4,000,000
divided into 4,000
shares of Bht. 1,000
each.
On
August 24, 1998,
the capital was
increased to Bht. 10,000,000 divided
into 10,000 shares of
Bht. 1,000 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2017]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Anuchit Boonthong Nationality: Thai Address : 93-95
Phrataen Rd., T. Tharua,
A.
Thamaka, Kanchanaburi |
4,897 |
48.97 |
|
Ms. Kulnatda Boonthong Nationality: Thai Address : 57-59
Sang-xuto Rd., T. Tharua,
A.
Thamaka, Kanchanaburi |
1,601 |
16.01 |
|
Mr. Payont Rakkarn-ngan Nationality: Thai Address : 243 Soi
Noppakao 5, Prachachuen 37 Rd.,
Bangsue, Bangkok |
1,100 |
11.00 |
|
Ms. Monticha Rakkarn-ngan Nationality: Thai Address : 124/17
T. Tsaimah, A. Muang,
Nonthaburi |
800 |
8.00 |
|
Mr. Charnchai Rakkarn-ngan Nationality: Thai Address : 50/9
Moo 1, T. Taladkwan, A.
Muang, Nonthaburi |
800 |
8.00 |
|
Mr. Apibul Rakkarn-ngan Nationality: Thai Address : 50/9
Moo 1, T. Taladkwan, A.
Muang, Nonthaburi |
800 |
8.00 |
|
Mrs. Oraphan Boonthong Nationality: Thai Address : 57/3
Moo 9, T.
Taladkwan, A. Muang, Nonthaburi |
1 |
0.01 |
|
Mr. Supapol Boonthong Nationality: Thai Address : 57-59
Sang-xuto Rd., T. Tharua,
A.
Thamaka, Kanchanaburi |
1 |
0.01 |
Total Shareholders : 8
SHARE STRUCTURE [AS
AT APRIL 30,
2017]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
8 |
10,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
8 |
10,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC ACCOUNTANT NO.
Mr. Klanarong Phatranuprawat No. 3525
Financials
SMC CORPORATION LIMITED
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 |
9,457,771.34 |
2,929,111.80 |
3,628,182.74 |
|
Short-term Investment |
23,458,283.98 |
24,090,826.03 |
23,837,542.98 |
|
Trade Accounts and Other
Receivable |
214,668,333.47 |
190,025,228.11 |
158,756,216.52 |
|
Inventories |
96,145,263.96 |
179,748,733.38 |
197,592,392.55 |
|
|
|
|
|
|
Total Current Assets
|
343,729,652.75 |
396,793,899.32 |
383,814,334.79 |
|
Property, Plant and Equipment |
185,974,740.89 |
163,294,269.20 |
178,646,384.59 |
|
Other Non-current Assets |
182,356.00 |
229,111.24 |
66,570.51 |
|
Total Assets |
529,886,749.64 |
560,317,279.76 |
562,527,289.89 |
LIABILITIES & SHAREHOLDERS’
EQUITY [BAHT]
|
Current
Liabilities |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Bank Overdraft and Short-term Loan from Financial Institutions |
147,027,505.29 |
238,386,789.14 |
214,860,316.02 |
|
Trade Accounts and
Other Payable |
118,604,265.77 |
64,689,454.96 |
78,701,842.62 |
|
Current Portion of
Long-term Liabilities |
15,912,000.00 |
11,208,000.00 |
11,208,000.00 |
|
Short-term Loans |
- |
1,000,000.00 |
3,223,800.00 |
|
Accrued Income Tax |
478,883.45 |
|
438,078.84 |
|
|
|
|
|
|
Total Current Liabilities |
282,022,654.51 |
315,284,244.10 |
308,432,037.48 |
|
Long-term Loans |
27,916,048.53 |
26,928,000.00 |
38,136,000.00 |
|
Other Non-current Liabilities |
1,335,476.37 |
1,856,372.37 |
309,070.00 |
|
Total Liabilities |
311,274,179.41 |
344,068,616.47 |
346,877,107.48 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 10,000 shares |
10,000,000.00 |
10,000,000.00 |
10,000,000.00 |
|
|
|
|
|
|
Capital Paid |
10,000,000.00 |
10,000,000.00 |
10,000,000.00 |
|
Retained Earnings : [Deficit] Appropriated for statutory
reserve |
1,000,000.00 |
1,000,000.00 |
1,000,000.00 |
|
Unappropriated |
207,612,570.23 |
205,248,663.29 |
204,650,182.41 |
|
Total Shareholders' Equity |
218,612,570.23 |
216,248,663.29 |
215,650,182.41 |
|
Total Liabilities and Shareholders' Equity |
529,886,749.64 |
560,317,279.76 |
562,527,289.89 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Sales or Services Income |
417,842,963.07 |
280,838,898.53 |
323,004,813.99 |
|
Other Income |
1,437,918.50 |
10,827,928.72 |
3,221,284.50 |
|
Total Revenues |
419,280,881.57 |
291,666,827.25 |
326,992,498.49 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Raw Material and Material
Supplies |
351,979,778.58 |
236,186,886.65 |
252,875,951.20 |
|
Employee Benefits Expenses |
22,349,338.01 |
15,592,888.91 |
14,016,696.53 |
|
Other Expenses |
27,344,555.81 |
22,636,335.78 |
37,091,927.10 |
|
Total Expenses |
401,673,672.40 |
274,416,111.34 |
303,984,574.83 |
|
|
|
|
|
|
Profit /[Loss] before
Financial Cost & Income
Tax |
17,607,209.17 |
17,250,715.91 |
23,007,923.66 |
|
Financial Costs |
[14,633,238.14] |
[16,437,299.53] |
[17,801,821.34] |
|
Profit /[Loss] before Income
Tax |
2,973,971.03 |
813,416.38 |
5,206,102.32 |
|
Income Tax |
[610,064.09] |
[214,935.50] |
[1,084,857.68] |
|
|
|
|
|
|
Net Profit / [Loss] |
2,363,906.94 |
598,480.88 |
4,121,244.64 |
SMC CORPORATION
LIMITED
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.22 |
1.26 |
1.24 |
|
QUICK RATIO |
TIMES |
0.88 |
0.69 |
0.60 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.25 |
1.72 |
1.81 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.79 |
0.50 |
0.57 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
99.70 |
277.78 |
285.20 |
|
INVENTORY TURNOVER |
TIMES |
3.66 |
1.31 |
1.28 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
187.52 |
246.97 |
179.40 |
|
RECEIVABLES TURNOVER |
TIMES |
1.95 |
1.48 |
2.03 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
122.99 |
99.97 |
113.60 |
|
CASH CONVERSION CYCLE |
DAYS |
164.23 |
424.78 |
351.00 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
84.24 |
84.10 |
78.29 |
|
SELLING & ADMINISTRATION |
% |
5.35 |
5.55 |
4.34 |
|
INTEREST |
% |
3.50 |
5.85 |
5.51 |
|
GROSS PROFIT MARGIN |
% |
16.11 |
19.76 |
22.95 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.21 |
6.14 |
7.12 |
|
NET PROFIT MARGIN |
% |
0.57 |
0.21 |
1.28 |
|
RETURN ON EQUITY |
% |
1.08 |
0.28 |
1.91 |
|
RETURN ON ASSET |
% |
0.45 |
0.11 |
0.73 |
|
EARNING PER SHARE |
BAHT |
236.39 |
59.85 |
412.12 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.59 |
0.61 |
0.62 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.42 |
1.59 |
1.61 |
|
TIME INTEREST EARNED |
TIMES |
1.20 |
1.05 |
1.29 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
48.78 |
(13.05) |
|
|
OPERATING PROFIT |
% |
2.07 |
(25.02) |
|
|
NET PROFIT |
% |
294.98 |
(85.48) |
|
|
FIXED ASSETS |
% |
13.89 |
(8.59) |
|
|
TOTAL ASSETS |
% |
(5.43) |
(0.39) |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 48.78%. Turnover has increased from THB
280,838,898.53 in 2015 to THB 417,842,963.07 in 2016. While net profit has
increased from THB 598,480.88 in 2015 to THB 2,363,906.94 in 2016. And total
assets has decreased from THB 560,317,279.76 in 2015 to THB 529,886,749.64 in
2016.
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
16.11 |
Impressive |
Industrial
Average |
- |
|
Net Profit Margin |
0.57 |
Acceptable |
Industrial
Average |
1.38 |
|
Return on Assets |
0.45 |
Satisfactory |
Industrial
Average |
0.84 |
|
Return on Equity |
1.08 |
Satisfactory |
Industrial
Average |
1.82 |
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 16.11%. 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 0.57%.
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. When compared with the
industry average, it was lower, the
company's figure is 0.45%.
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 1.08%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.22 |
Satisfactory |
Industrial
Average |
1.42 |
|
Quick Ratio |
0.88 |
|
|
|
|
Cash Conversion Cycle |
164.23 |
|
|
|
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 1.22 times in 2016, increase 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 0.88 times in 2016,
increase from 0.69 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 165 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.59 |
Acceptable |
Industrial
Average |
0.48 |
|
Debt to Equity Ratio |
1.42 |
Risky |
Industrial
Average |
0.93 |
|
Times Interest Earned |
1.20 |
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 1.21 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 Downtrend
Times Interest Earned Stable
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.25 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.79 |
Impressive |
Industrial
Average |
0.61 |
|
Inventory Conversion Period |
99.70 |
|
|
|
|
Inventory Turnover |
3.66 |
Impressive |
Industrial
Average |
0.74 |
|
Receivables Conversion Period |
187.52 |
|
|
|
|
Receivables Turnover |
1.95 |
Satisfactory |
Industrial
Average |
2.05 |
|
Payables Conversion Period |
122.99 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.95 and 1.48 in
2016 and 2015 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 2016
increased from 2015. This would suggest the company had good performance 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 278 days at the
end of 2015 to 100 days at the end of 2016. This represents a positive trend.
And Inventory turnover has increased from 1.31 times in year 2015 to 3.66 times
in year 2016.
The company's Total Asset Turnover is calculated as 0.79 times and 0.5
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 64.99 |
|
|
1 |
INR 89.91 |
|
Euro |
1 |
INR 80.21 |
|
Thai baht |
1 |
INR 2.07 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
|
|
|
|
Report Prepared
by : |
SYL |
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.