|
|
|
MIRA INFORM REPORT
|
Report No. : |
506591 |
|
Report Date : |
03.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
SCG TRADING CO., LTD. |
|
|
|
|
Formerly Known As : |
SCT CO., LTD. |
|
|
|
|
Registered Office : |
1 Siam Cement
Road, Bangsue, Bangkok 10800 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2016 |
|
|
|
|
Date of Incorporation : |
23.03.1962 |
|
|
|
|
Com. Reg. No.: |
0105505000494
[Former: 66/2505] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject’s activity is
an international trading
business to import, distribute
and export wide range
of products including
cement and construction materials,
energy products, industrial
and recycled products,
automotive products, agricultural products
and etc., for
Siam Cement Group
of Companies. |
|
|
|
|
No. of Employees : |
400 |
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 : |
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 (30.09.2017) |
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
SCG TRADING CO., LTD.
[FORMER: SCT CO., LTD.]
SUMMARY
BUSINESS ADDRESS : 1
SIAM CEMENT ROAD,
BANGSUE, BANGKOK 10800,
THAILAND
TELEPHONE : [66] 2586-1888,
2586-2222
FAX : [66] 2587-2159,
2587-2203, 2586-2990, 2586-2251
E-MAIL ADDRESS : scg-trading@scg.co.th
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1962
REGISTRATION NO. : 0105505000494 [Former: 66/2505]
TAX ID NO. : 3101004137
CAPITAL REGISTERED : BHT.
400,000,000
CAPITAL PAID-UP : BHT.
400,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR.
BUNN KASEMSUP, THAI
MANAGING
DIRECTOR / MARKET
DEVELOPMENT
BUSINESS DIRECTOR
NO. OF STAFF : 400
LINES OF BUSINESS : INTERNATIONAL TRADING
IMPORTER, 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
initially established on
March 23, 1962
as a private
limited company under
the registered name “Construction
Material Marketing Co., Ltd.” by
a joint venture
between Siam Cement
Public Co., Ltd.
and The Thai
Commercial Banks to operate
as a trading
company in Thailand.
Later, the subject
became a wholly
owned subsidiary of
the Siam Cement Group,
then subject’s name
was changed to
SIAM CEMENT TRADING
CO., LTD. on October
14, 1964.
On October 12,
1978, the subject’s
name was changed
to SCT CO.,
LTD.
On November 30,
2010, its name
was finally changed
to SCG TRADING
CO., LTD.
In 1998, subject
was awarded the
Prime Minister’s Export
Award as the
Best Exporter.
SCT was also
the first international
trading company in
Thailand to receive
the TIS/ISO 9002
certification for quality assurance
production.
The subject is
engaged in international
trading business, to
import, distribute and export
cement & construction
materials, energy products,
industrial & recycled
products, automotive products,
agricultural products and
etc. It currently
employs approximately 400
staff.
Presently, the subject
is a subsidiary
of SCG Distribution
Co., Ltd., which
is a member of SCG group of companies,
by having The Siam
Cement Public Company Limited as
the principle company.
The subject’s registered
address is 1
Siam Cement Rd.,
Bangsue, Bangkok 10800, and
this is the
subject’s current operation
address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kalin Sarasin |
|
Thai |
57 |
|
Mr. Aree Chavalitcheewingul |
[x] |
Thai |
55 |
|
Mr. Bunn Kasemsup |
[x] |
Thai |
51 |
|
Mr. Nithi Patarachoke |
[x] |
Thai |
55 |
|
Mr. Chana Poomee |
[x] |
Thai |
53 |
AUTHORIZED PERSON
Any two of
the mentioned directors [x] can jointly
sign on behalf of the subject
with
company’s affixed.
MANAGEMENT
Mr. Bunn Kasemsup
is the Managing
Director / Market Development Business Director.
He is Thai
nationality with the
age of 51 years
old.
Mr. Akaraphol Dacharux
is the Business
Integration and Finance
Director.
He is Thai
nationality.
Mr. Kitti Pattanaleenakul is
the Sourcing Business
Director and
Energy Division
Manager.
He is Thai
nationality.
Mr. Phisanu Milintanush is
the International Trade
Business Director and
Industrial &
Agricultural Supplies
Division Manager.
He is Thai
nationality.
Mr. Yoontee Jaruluxcana
is the Oversea
Division Director.
He is Thai
nationality.
Mr. Akkharaphon Tipphavawon
is the Automotive
and Industrial Materials
Manager.
He is Thai
nationality.
Mr. Nakin Piyarom
is the Recycling
Business Division Manager.
He is Thai
nationality.
Mr. Nopporn Latthitham
is the Building
Material Division Manager.
He is Thai
nationality.
Mr. Suriyon Tuchinda
is the Steel & Home Improvement
Division Manager.
He is Thai
nationality.
Mr. Yongyos Pholtanawat
is the Cement
Division Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity is
an international trading
business to import, distribute
and export wide range
of products including
cement and construction
materials, energy products,
industrial and recycled
products, automotive products,
agricultural products and
etc., for Siam
Cement Group of
Companies.
PURCHASE
The products are
imported from United
States of America,
Canada, Australia and
the country in
Europe and Asia,
as well as
purchasing from local
suppliers.
MAJOR SUPPLIERS
SCG Group of
Companies : Thailand
Domtar Inc. : Canada
SALES [LOCAL]
The products are
sold to manufacturers, wholesalers,
end-users and Thai Government.
EXPORT [COUNTRIES]
The major export
products are food
and construction materials.
Its products are
exported to over
30 countries worldwide
such as Indonesia,
Singapore, Hong Kong,
Laos, U.A.E., Bangladesh,
United States of
America, Vietnam, Myanmar,
Taiwan, India, Australia, Republic of China, Malaysia, Canada,
Hungary, France, Russia, Cambodia, Philippines,
Brazil, Brunei, Sweden,
Switzerland, Nepal, Nigeria,
South Africa, Jordan
and Middle East
countries.
MAJOR CUSTOMERS
SCG Trading (USA)
Inc. : United
States of America
SCG Trading (Cambodia)
Co., Ltd. :
Cambodia
SCG Trading Guangzhou
Co., Ltd. :
Republic of China
SCG Trading Hong
Kong Ltd. : Hong
Kong
SCGT Malaysia Sdn. Bhd. : Malaysia
SCG Trading Philippines
Inc. : Philippines
SCG Singapore Trading
Pte. Ltd. : Singapore
SCG Trading Australia
Pty. Ltd. :
Australia
SCG Trading Emirates
L.L.C. : United
Arab Emirate
PT. SCG Trading Indonesia : Indonesia
Siam Cement Myanmar
Trading Ltd. : Myanmar
SCG Trading Lao
Co., Ltd. :
Laos
SCG Trading Co.,
Ltd. : India
PARENT COMPANY
SCG Distribution Co.,
Ltd.
LITIGATION
Bankruptcy and Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the
subject found at
Legal Execution Department for
the past five
years.
Others
There are no
legal suits filed
against the subject
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
30-60-90 days.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BANKING
Kasikornbank Public Company
Limited
[Head Office : 1 Kasikorn Lane,
Rajburana Rd., Rajburana,
Bangkok 10140]
The Siam Commercial
Bank Public Company Limited
[Head Office : 9
Ratchadapisek Rd., Ladyao,
Jatujak, Bangkok 10900]
Export-Import Bank of
Thailand
[Head Office :
1193 Phaholyothin Rd.,
Samsennai, Phyathai, Bangkok
10400]
Bangkok Bank Public
Company Limited
[Head Office : 333
Silom Rd., Silom,
Bangrak, Bangkok 10500]
Citibank, NA
[Head Office : 82
North Sathorn Rd.,
Bangrak, Bangkok 10500]
EMPLOYMENT
The subject employs
approximately 400 office
and sales staff.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address in commercial/ residential area.
Premise is shared
with Siam Cement
Group of Companies.
Warehouse and Distribution
Center :
There are 36
warehouses and distribution
centers comprising 7
domestic branches and
29 overseas branches.
The domestic branches
are as follows:
99/1 Moo 3, T.
Bo-Pong, A. Nakornluang, Ayuttaya
13260
31/1 Moo 5, T.
Bangkrachao, A. Muang, Samutsakorn
74000
234 Moo 4, T.
Praeksa, A. Muang, Samutprakarn
10280
52 Moo 6, T.
Teewang, A. Thungsong, Nakorn
Srithammarat 80110
99/10 Moo 1, T.
Thajeen, A. Muang, Samutsakorn
74000
111/4 Moo 2, T.
Klongsakae, A. Nakornluang, Ayuttaya
13260
222 Moo 1,
Saeng-xuto Road, T. Wangkanai,
A. Thamuang, Kanchanaburi 71110
COMMENT
SCG Trading Co.,
Ltd. is one of Thailand’s
long established and
most prestigious international
trading companies. Formerly known
as Siam Cement Trading Co.,
Ltd., it was
established for over 5
decades to promote
the growth of Thai industries
and the export
of Thai products to the
world market. Notable were canned foods, frozen
seafood, garments, minerals,
paper and construction
materials.
In 2016 demand
of the products
was decreased comparing
to the previous
year due to
slowdown of economy,
less investment, slow expansion
from various industries, and low
consumer’s spending. Nevertheless, the subject’s
business remains solid
and profitable.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 60,000,000 divided
into 600,000 shares
of Bht. 100
each.
Capital was increased
later as followings
:
Bht. 120,000,000
in April 1968
Bht. 400,000,000
on March 26,
2000
The latest registered
capital was increased
to Bht. 400,000,000
divided into 4,000,000
shares of Bht.
100 each with
fully paid.
MAIN SHAREHOLDERS : [as at
April 18, 2017]
|
NAME |
HOLDING |
% |
|
|
|
|
|
SCG Distribution Co.,
Ltd. Nationality: Thai Address : 1 Siam
Cement Rd., Bangsue,
Bangkok |
3,998,813 |
99.97 |
|
Mrs. Pasanuch Suphanvanich Nationality: Thai Address : 26/9
Ngamwongwan Rd., Thungsonghong, Laksi, Bangkok |
260 |
|
|
Mr. Kittiphan Hetrakul Nationality: Thai Address : 8
Sakhumvit 21 Rd.,
Klongtoey, Bangkok |
228 |
= 0.03 |
|
Mrs. Tanpien Jiamvijit Nationality: Thai Address : 160/29
Soi Mooban Panya,
Suanluang, Bangkok |
195 |
|
|
Others |
504 |
|
Total Shareholders : 32
Share Structure [as
at April 18,
2017]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
32 |
4,000,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
32 |
4,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Sureerat Thongarunsaeng
No. 4409
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2016,
2015 and 2014
were:
ASSETS
|
Current Assets |
2016 |
2015 [Adjusted] |
2014 |
|
|
|
|
|
|
Cash and Cash Equivalent |
6,218,297 |
3,331,658 |
6,061,561 |
|
Trade Accounts and
Other Receivable |
2,068,017,962 |
2,574,840,578 |
3,116,643,658 |
|
Short-term Loans |
434,903,130 |
629,284,453 |
146,551,693 |
|
Inventories |
861,811,830 |
901,486,213 |
1,168,105,333 |
|
Other Current Assets
|
213,659,371 |
487,566,896 |
292,499,078 |
|
|
|
|
|
|
Total Current Assets
|
3,584,610,590 |
4,596,509,798 |
4,729,861,323 |
|
|
|
|
|
|
Investment in Associated |
117,707,251 |
117,707,266 |
- |
|
Investment in Subsidiaries |
296,452,173 |
305,215,942 |
410,722,681 |
|
Other Long-term Investment |
970,411 |
963,804 |
966,672 |
|
Property, Plant and Equipment |
151,019,835 |
157,180,056 |
156,928,454 |
|
Intangible Assets |
228,830,236 |
71,455,538 |
67,959,012 |
|
Deferred Income Tax
Assets |
38,034,401 |
50,064,107 |
53,745,060 |
|
Other Non-current Assets
|
92,329,623 |
66,448,280 |
39,023,148 |
|
Total Assets |
4,509,954,520 |
5,365,544,791 |
5,459,206,350 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2016 |
2015 [Adjusted] |
2014 |
|
|
|
|
|
|
Trade Accounts and
Other Payable |
2,537,015,063 |
3,536,639,281 |
3,920,339,678 |
|
Short-term Loans |
492,578,243 |
458,566,009 |
183,908,957 |
|
Estimated Short-term
Liabilities |
7,711,263 |
6,612,848 |
6,800,345 |
|
Other Current Liabilities |
32,114,344 |
31,626,085 |
29,033,715 |
|
|
|
|
|
|
Total Current Liabilities |
3,069,418,913 |
4,033,444,223 |
4,140,082,695 |
|
Employee Benefits Obligation |
55,345,995 |
51,059,287 |
73,490,815 |
|
Other Non-current Liabilities |
248,568 |
221,658 |
183,656 |
|
Total Liabilities |
55,594,563 |
51,280,945 |
4,213,757,166 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized and
issued share capital
4,000,000 shares |
400,000,000 |
400,000,000 |
400,000,000 |
|
|
|
|
|
|
Capital Paid |
400,000,000 |
400,000,000 |
400,000,000 |
|
Premium on Share Capital |
25,023,100 |
25,023,100 |
25,023,100 |
|
Retained Earning Appropriated for statutory reserve |
14,976,900 |
14,976,900 |
14,976,900 |
|
Unappropriated |
944,874,850 |
840,758,714 |
805,385,981 |
|
Other Components of Shareholders’ Equity |
66,194 |
60,909 |
63,203 |
|
Total Shareholders' Equity |
1,384,941,044 |
1,280,819,623 |
1,245,449,184 |
|
Total Liabilities and
Shareholders' Equity |
4,509,954,520 |
5,365,544,791 |
5,459,206,350 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2016 |
2015 [Adjusted] |
2014 |
|
|
|
|
|
|
Sales or Service Income |
30,683,329,923 |
36,509,002,551 |
35,405,226,308 |
|
Other Income |
290,727,648 |
153,031,292 |
182,549,768 |
|
Total Revenues |
30,974,057,571 |
36,662,033,843 |
35,587,776,076 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold or Service |
26,800,076,768 |
31,612,728,179 |
30,435,686,686 |
|
Selling Expenses |
3,079,376,336 |
3,897,033,095 |
3,923,665,393 |
|
Administrative Expenses |
845,278,947 |
864,019,547 |
868,290,593 |
|
Other Expenses |
- |
- |
61,518,860 |
|
Total Expenses |
30,724,732,051 |
36,373,780,821 |
35,289,161,532 |
|
|
|
|
|
|
Profit /[Loss] before Financial
Cost and Income
Tax |
249,325,520 |
288,253,022 |
298,614,544 |
|
Financial Cost |
[11,556,791] |
[5,342,300] |
[77,452,133] |
|
|
|
|
|
|
Profit /[Loss] before Income
Tax |
237,768,729 |
282,910,722 |
221,162,411 |
|
Income Tax |
[33,652,593] |
[47,537,989] |
[47,997,395] |
|
|
|
|
|
|
Net Profit / [Loss] |
204,116,136 |
235,372,733 |
173,165,016 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.17 |
1.14 |
1.14 |
|
QUICK RATIO |
TIMES |
0.82 |
0.80 |
0.79 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
203.17 |
232.28 |
225.61 |
|
TOTAL ASSETS TURNOVER |
TIMES |
6.80 |
6.80 |
6.49 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
11.74 |
10.41 |
14.01 |
|
INVENTORY TURNOVER |
TIMES |
31.10 |
35.07 |
26.06 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
24.60 |
25.74 |
32.13 |
|
RECEIVABLES TURNOVER |
TIMES |
14.84 |
14.18 |
11.36 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
34.55 |
40.83 |
47.01 |
|
CASH CONVERSION CYCLE |
DAYS |
1.79 |
(4.68) |
(0.88) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
87.34 |
86.59 |
85.96 |
|
SELLING & ADMINISTRATION |
% |
12.79 |
13.04 |
13.53 |
|
INTEREST |
% |
0.04 |
0.01 |
0.22 |
|
GROSS PROFIT MARGIN |
% |
13.60 |
13.83 |
14.55 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.81 |
0.79 |
0.84 |
|
NET PROFIT MARGIN |
% |
0.67 |
0.64 |
0.49 |
|
RETURN ON EQUITY |
% |
14.74 |
18.38 |
13.90 |
|
RETURN ON ASSET |
% |
4.53 |
4.39 |
3.17 |
|
EARNING PER SHARE |
BAHT |
51.03 |
58.84 |
43.29 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.69 |
0.76 |
0.77 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.26 |
3.19 |
3.38 |
|
TIME INTEREST EARNED |
TIMES |
21.57 |
53.96 |
3.86 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(15.96) |
3.12 |
|
|
OPERATING PROFIT |
% |
(13.50) |
(3.47) |
|
|
NET PROFIT |
% |
(13.28) |
35.92 |
|
|
FIXED ASSETS |
% |
(3.92) |
0.16 |
|
|
TOTAL ASSETS |
% |
(15.95) |
(1.72) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -15.96%. Turnover has decreased from THB
36,509,002,551.00 in 2015 to THB 30,683,329,923.00 in 2016. While net profit
has decreased from THB 235,372,733.00 in 2015 to THB 204,116,136.00 in 2016.
And total assets has decreased from THB 5,365,544,791.00 in 2015 to THB
4,509,954,520.00 in 2016.
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
13.60 |
Deteriorated |
Industrial Average |
192.10 |
|
Net Profit Margin |
0.67 |
Satisfactory |
Industrial Average |
0.76 |
|
Return on Assets |
4.53 |
Impressive |
Industrial Average |
4.48 |
|
Return on Equity |
14.74 |
Impressive |
Industrial Average |
13.59 |
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 13.6%. When compared with
the industry average, the ratio of the company was lower. This indicated that
company may have problems with control over its costs.
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 0.67%.
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 Return on
Assets ratio is 4.53%, 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 14.74%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profit in a dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.17 |
Satisfactory |
Industrial Average |
1.19 |
|
Quick Ratio |
0.82 |
|
|
|
|
Cash Conversion Cycle |
1.79 |
|
|
|
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 1.17 times in 2016, increase from 1.14 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 0.82 times in 2016, increase
from 0.8 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 2 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.69 |
Acceptable |
Industrial Average |
0.65 |
|
Debt to Equity Ratio |
2.26 |
Risky |
Industrial Average |
1.90 |
|
Times Interest Earned |
21.57 |
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 21.58 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 0.69 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 |
203.17 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
6.80 |
Impressive |
Industrial Average |
5.88 |
|
Inventory Conversion Period |
11.74 |
|
|
|
|
Inventory Turnover |
31.10 |
Impressive |
Industrial Average |
23.28 |
|
Receivables Conversion Period |
24.60 |
|
|
|
|
Receivables Turnover |
14.84 |
Impressive |
Industrial Average |
10.42 |
|
Payables Conversion Period |
34.55 |
|
|
|
The company's Account Receivable Ratio is calculated as 14.84 and 14.18
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 increased from 10 days at the
end of 2015 to 12 days at the end of 2016. This represents a negative trend.
And Inventory turnover has decreased from 35.07 times in year 2015 to 31.1
times in year 2016.
The company's Total Asset Turnover is calculated as 6.8 times and 6.8
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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 66.66 |
|
|
1 |
INR 90.66 |
|
Euro |
1 |
INR 80.00 |
|
Thai Baht |
1 |
INR 2.10 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRA |
|
|
|
|
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.