MIRA INFORM REPORT
|
Report Date : |
2nd May 2006 |
IDENTIFICATION DETAILS
|
Name : |
BAYER THAI
CO., LTD. |
|
|
|
|
Registered Office : |
130/1 North
Sathorn Road, Silom, Bangrak, Bangkok
10500, Thailand |
|
|
|
|
Date of Incorporation : |
1962 |
|
|
|
|
Com. Reg. No.: |
0105505000451 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturers,
Importers & Distributors Polymer,
Chemical, Health Care & Crop
Science Business |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
NAME
BAYER THAI CO., LTD.
SUMMARY
BUSINESS ADDRESS : 130/1 NORTH SATHORN ROAD,
SILOM, BANGRAK,
BANGKOK 10500, THAILAND
TELEPHONE : [66] 2232-7000
FAX : [66] 2236-7738
E-MAIL ADDRESS : p.prasertsaeng@bayermaterialscience-com
roongrat.amornwatee.ra@bayer-aq.de
REGISTRATION ADDRESS : SAME AS THE BUSINESS ADDRESS
ESTABLISHED : 1962
REGISTRATION NO. : 0105505000451 [FORMER : 60/2505]
CAPITAL REGISTERED : BHT. 7,441,590,000
CAPITAL PAID-UP : BHT. 7,441,590,000
FISCAL YEAR CLOSING DATE: DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR. DOMINIKUS VON PESCATORE,
GERMAN MANAGING DIRECTOR
NO. OF EMPLOYEES : 1,000 [BAYER GROUP OF COMPANIES]
LINES OF BUSINESS : POLYMER, CHEMICAL, HEALTH CARE
& CROP SCIENCE BUSINESS
MANUFACTURER, IMPORTER &
DISTRIBUTOR
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH AVERAGE
PERFORMANCE
HISTORY
Bayer’s long association with Thailand began when the first Bayer dyestuffs were imported in the 1920s. In 1948 Bara Windsor Co., Ltd. was appointed the agent for various Bayer products, while Berli Jucker Co., Ltd. handled Agfa’s and pharmaceutical products. Bayer attained an official corporate presence with the formation of “Bayer Thai Co., Ltd.” on March 16, 1962. It is a subsidiary of Bayer AG in Germany in which Bayer AG held 86% of shares at that time.
In 1969, the first headoffice, “Bayer House” was opened. Bayer Thai has established a formidable presence in Thailand involved in the marketing of more than 3,000 products through 21 business groups.
A wholly-owned subsidiary, Bayer Laboratories Ltd., operates two plants for formulation and packaging, and warehouses, at Phrapradaeng and Bang Poo. The Phrapradaeng plant, built in 1963, produces pharmaceuticals, over the counter medications such as Bayer Aspirin, and animal health products, while Bang Poo facility, opened in 1981, produces crop protection and consumer care products such as Baygon.
1962 Bayer Thai Co., Ltd. was established as a subsidiary of Bayer AG.
1963 Bayer Thai opened Crop Protection plant at Phrapradaeng Industrial Estate.
1969 Bayer Thai built first headoffice “Bayer House” on North Sathorn Rd., Bangkok.
1971 Bayer Pharma was incorporated into Bayer Thai.
1983 Bayer Laboratories opened Baygon plant at Bang Poo Industrial Estate.
1985 Crop Protection plant moved to Bang Poo Plant.
Animal Health plant set up at Phrapradaent Plant.
Warehouse and distribution center established at Bang Poo Plant.
1995 Joint venture DyStar Thai Ltd. was formed to market textile dyes.
1996 Haarmann & Reimer (Thailand) Co., Ltd. acquired Florasynth’s Thai operations.
Bayer Premier Co., Ltd. was formed to manufacture acrylonitrile-butadiene-styrene (ABS) and styrene-acrylonitrile (SAN).
H.C. Starck (Thailand) Co., Ltd. was established to produce tantalum powder and niobium.
1997 Osotspa Co., Ltd. was appointed to distribute over-the-counter products of the Consumer Care Business Group.
Zuellig Pharma Ltd. was appointed to handle physical distribution of
pharmaceuticals and diagnostics products.
BAYER CENTER opened on North Sathorn Rd., Bangkok.
Bayer AG acquired 100% ownership of Bayer Premier and has changed the company’s name to “Bayer Polymers Co., Ltd.”
1998Liquidated Bayer Premier Sales Co., Ltd. and returned as Plastics
Business Group of Bayer Thai Co., Ltd.
1999Bayer AG increased shareholdership to 100% in Bayer Thai Co., Ltd.
Bayer Thai Co., Ltd. acquired 100% shares of Bayer Polymers Co., Ltd.
Closing Phrapradaeng plant.
Polycarbonate plant of Bayer Polymers Co., Ltd. opened at Map Ta Phut Industrial Estate.
2000 Bayer Laboratories integrated into Bayer
Thai Co., Ltd.
2000Bayer Polymers Co., Ltd. integrated into Bayer Thai Co., Ltd.
Presently, subject is a wholly owned subsidiary of Bayer Material Science AG. in Germany.
The subject’s registered address is 130/1 North Sathorn Rd., Silom, Bangrak, Bangkok 10500, and this is the subject’s current operation address.
THE BOARD OF DIRECTORS
|
Name |
Nationality |
Age |
|
|
|
|
|
Mr. Charn Charnchainarong |
Thai |
75 |
|
Mr. Dominikus Von Pescatore : Chairman |
German |
51 |
|
Mr. Peter Mueller |
German |
46 |
|
Mr. Chaveng Saijaw |
Thai |
58 |
|
Mr. Stefaan De Vos |
German |
- |
AUTHORIZED PERSON
One of the above directors signs on behalf of the subject with company’s affixed.
MANAGEMENT
Mr. Dominikus Von Pescatore is the Managing Director.
He is German nationality with the age of 51 years old. He has been in this position
in 2004.
Mr. Stefaan De Vos is the Factory Manger of Map Ta Phut Plant.
He is German nationality.
Mr. Manfred Adrian is the Factory Manager of Pangpoo Plant.
He is French nationality.
Mr. Gyorgy Polgar is the Sales & Marketing of Health Care Department.
He is German nationality.
Mr. Sranz - Detlef Lagies is the Sales & Marketing of Cropscience Department.
He is German nationality.
BUSINESS OPERATIONS
The subject’s activity is a manufacturer, importer and distributor the various types of products, which are consisted of 4 business segments/groups as the followings:
Polymers
-
- Plastics
- Rubber
- Polyurethanes
- Coatings and Colorants
- Fibers
Chemicals
- Basic and Fine Chemicals
- Specialty Products
- Wolff Walsrode
Health
Care
- Pharmaceuticals
- Consumer Care
- Diagnostics
- Animal Health
Crop Science
- Crop Protection
- Seeds
- Biotechnology
- Non-Agricutural
IMPORT [COUNTRIES]
Raw material
and machinery are
imported from Germany
Japan, France, United
States of America,
United Kingdom and
Singapore as well
as local suppliers.
MAJOR SUPPLIERS
Thasco Chemical Co., Ltd., Thailand
Vinythai Public Co., Ltd., Thailand
Siam Styrene Monomer Co., Ltd., Thailand
SALES [LOCAL]
Its chemical products are distributed by Lanxess [Thailand] Co., Ltd., the related company, as well as other products are sold to manufacturers, wholesalers and end-users.
EXPORT [COUNTRIES]
Some of its products are exported to Southeast Asia, such as Singapore, Malaysia and Etc.
PARENT COMPANY
Bayer Material Science AG. : Germany
RELATED/ ASSOCIATED COMPANY
H.C. Starck
[Thailand] Co., Ltd.
Business : Manufacturer base produces Tantalum & Niobium products.
Address : 5, 1-3A Rd., Map Ta Phut Industrial Estate, Rayong 21150
Awarded : ISO 9002, 14001 certification in 1999 and 2000 respectively.
Lanxess [Thailand]
Co., Ltd.
Business : Distributor of industrial chemical.
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 on the credit term & T/T.
Exports are against L/C at sight or on credit term & T/T.
BUSINESS TRANSACTION
The products is sold both by cash and credit, with maximum credit given at 30-90 days. The subject is not found to have problem on its account receivable.
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 for the past two years.
BANKING
Bangkok Bank Public Co., Ltd.
Kasikornbank Public
Co., ltd.
EMPLOYMENT
The subject employs approximately 1,000 staff [Bayer Group of Companies].
LOCATIONS
The premises
is owned for
administrative office and
Bayer Center at
the heading address.
The premise is
located in a prime
commercial area.
Production Sites:
Map Ta Phut Production Site is located on the area of 212,000 square meters at 4-4/1 J-8 Rd., Map Ta Phut Industrial Estate, Rayong 21150.
The plastic production plant started up in 1996. With a world-scale production capacity, the local manufacturing of Lustran ABS, the engineering plastic made from acrylonitrile, butadiene and styrene; Lustran SAN, a product for injection molding application, based on styrene and acrylonitrile; Bayblend (PC/ABS) a polymer blend of ABS and Polycarbonate; and the newest addition Makrolon (Polycarbonate) are supplied to Thailand and Asia/Pacific countries and other regional markets through the Bayer network.
The subject is further expanding its production capacity of polycarbonate to 150,000 tons/annum by the year 2002 after the start-up of the first phase of polycarbonate production in November 1999. As an integral part of the second phase, a plant to produce 160,000 tons/annum of the precursor product Bisphenol A is also being constructed.
The plant received its ISO 14001 and ISO 9001 certifications in 1998 plus the Occupational Health and Safety Assessment Services [OHSAS 18000] were obtained in 2000. 10% of the total investment have been spent for Health, Environment, and Safety issues.
Bang Poo Product Site is located on 52,000 square meters at 239 Moo 4, Bangpoo Industrial Estate, Samutprakarn 10280.
The manufacturing facility of Bayer Thai Co., Ltd. has commenced the operation since 1983. The plant initially produced household insecticides under Baygon trade-name for the Consumer Care Business Group. The state-of-the-art facility has been developed and expanded to serve increasing domestic and export market demands and the growth of Bayer's business groups.
At present, the plant houses production lines for three business groups which are Crop Protection, Animal Health and Consumer Care. Products include insecticides Confidor and Folitec, molluscides Bayluscide under Crop Protection Business Group; Animal Health's rodenticide Racumin, anti-parasites Asuntol and Negasunt, dusting powder for the treatment and protection of wounds against bacterial infection, as well as Baygon of Consumer Care Business Group. The products will be formulated and packaged in forms of liquid and solid substances to serve domestic and overseas markets with annual capacity of over 8,000 tons, including Baygon manufacturing of more than 20 million units a year.
A regional herbicide plant of Crop Protection Business Group has been set up in the year 2000 with the capacity of 2,000 tons per annum, including the production of herbicide Lecspro.
Bayer Thai’s facility at Bangpoo Industrial Estate was awarded the first ever Good Manufacturing Practice [GMP] certification for household insecticide production by the Food and Drug Administration [FDA] of Thailand in 1999. The subject has committed to environmental production, occupational and plant safety, and product stewardship under the principles of “Responsible Care”. In addition, the plant recently achieved the ISO 14001 certification to verify the high technology of the environmental management system in June 2001.
COMMENT
In Thailand,
Bayer’s focus is
on polymers, chemicals
and agricultural products.
The subject is
doing very well
in the agricultural and chemical
business. The polymers
business is increasing,
and products for
the textile industry
are doing fine
because its distribution sales customers are
exporting and were
able to obtain
funds.
The pharmaceutical business also includes a range of equipment and chemical reagents for use in laboratories and pharmacies. The subject’s strength is in the areas of urine chemistry, diabetes and clinical chemistry.
Most of the group’s research and development facilities are located in Germany, other countries in Western Europe, along with the United States and Japan. Most of the R&D budget emphasizes health care and agricultural research.
The strong worldwide Research and Development of Bayer
AG, the parent
company will guarantee
a steady flow
of new technology to Thailand,
and the advanced
developments of environmental protection measures will
be applied in
the country too.
With major capital expenditures in the field of engineering plastics, Thailand has received high priority on Bayer's agenda for growth in Asia. As part of a five-year investment program, about US$ 500 million was allocated to Thailand by the year 2001. The lion's share of the budget went to the Map Ta Phut industrial estate on the eastern seaboard province of Rayong, Thailand where the subject has started to build up a production center for polymers to serve both the domestic market and the Asia Pacific economic region as a whole.
The subject is also committed to taking the lead in conserving natural resources it has been a key promoter in Thailand chemical industry to join Responsible Care, a global environmental protection programme that stresses the health and safety of employees and the public in general. The management team in Thailand is working closely with the Chemical Industry Club of the Federation of Thai Industries to prepare Thailand to be a member of Responsible Care Leadership Group in the near future.
FINANCIAL INFORMATION
The capital was initially registered at Bht. 2,000,000, divided into 2,000 shares of Bht. 1,000 each.
The capital was increased later as followings:
Bht. 30,000,000 on February 19, 1999
Bht. 7,441,590,000 on December 14, 1999
The latest capital was divided into 7,441,590 shares of Bht. 1,000 each with fully paid.
THE SHAREHOLDERS LISTED WERE
[as at April
29, 2005]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Bayer Material
Science AG. Nationality : German Address : Leverkusen, German |
7,441,584 |
100.00 |
|
Bayer Handel GmbH Nationality : German Address : Leverkusen, German |
1 |
- |
|
Mr. Peter A. Glaessel Nationality : German Address : 9 Benoy Sector, Singapore |
1 |
- |
|
Dr. Hubeatus Bengey Nationality : German Address : Leverkusen, German |
1 |
- |
|
Dr. Heinz W. Dol Nationality
: German Address : Leverkusen, German |
1 |
- |
|
Mr. Aulf Rosenbown Nationality : German Address : Leverkusen, German |
1 |
- |
|
Mr. Ludolf Fonkernick Nationality : German Address : Leverkusen, German |
1 |
- |
Total Shareholders : 7
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.:
Mrs. Somsri Tanyacheewee No. 1905
BALANCE SHEET [BAHT]
The latest financial figures published as at December 31, 2004 & 2003 were:
ASSETS
|
Current Assets |
2004 |
2003 |
|
|
|
|
|
Cash in hand & at Bank [note 1] |
17,810,138 |
25,715,502 |
|
Trade Accounts Receivable |
1,025,056,186 |
1,029,512,069 |
|
Account Receivable - Related Company |
3,311,460,185 |
2,561,460,097 |
|
Short-term Loan to Related Company |
274,875,000 |
6,175,000 |
|
Inventories [note 2] |
3,789,444,244 |
2,662,175,203 |
|
Other Current Assets |
488,533,271 |
328,834,795 |
|
|
|
|
|
Total Current Assets |
8,907,179,024 |
6,613,872,666 |
|
Investment in Subsidiary |
98,863,522 |
95,232,101 |
|
Intangible Assets |
15,537,309 |
32,896,111 |
|
Fixed Assets [note 3] |
11,007,669,650 |
14,066,902,729 |
|
Other Assets |
188,117,418 |
200,792,229 |
|
Total Assets |
20,217,366,923 |
21,009,695,836 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2004 |
2003 |
|
|
|
|
|
Bank Overdraft & Short-term Loan from Bank |
5,870,000,000 |
2,732,000,000 |
|
Trade Accounts Payable |
1,262,762,602 |
1,258,060,972 |
|
Account Payable - Related Company |
690,233,141 |
453,858,689 |
|
Short-term Loan from Related Company |
1,150,500,000 |
2,477,000,000 |
|
Current Portion of Long-term Loan from Related Company |
- |
4,000,000,000 |
|
Other Current Liabilities |
435,963,983 |
574,031,514 |
|
|
|
|
|
Total Current Liabilities |
9,409,459,726 |
11,494,951,175 |
|
Long-term Loan from Related Company |
1,000,000,000 |
1,000,000,000 |
|
Provision for Employees’ Benefits |
73,415,711 |
91,474,105 |
|
Total Liabilities |
10,482,875,437 |
12,586,425,280 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 1,000 par value Authorized, issued and fully paid share capital 7,441,590 shares |
7,441,590,000 |
7,441,590,000 |
|
|
|
|
|
Capital Paid |
7,441,590,000 |
7,441,590,000 |
|
Retained Earning Appropriated for Statutory Reserve |
75,000,000 |
75,000,000 |
|
Other Reserve |
1,000,000,000 |
1,000,000,000 |
|
Unappropriated [Deficit] |
1,217,901,486 |
[93,319,444] |
|
Total Shareholders' Equity |
9,734,491,486 |
8,423,270,556 |
|
Total Liabilities
& Shareholders' Equity |
20,217,366,923 |
21,009,695,836 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2004 |
2003 |
|
|
|
|
|
Sales |
22,228,961,157 |
19,649,890,442 |
|
Income from Sale of Business |
- |
911,264,693 |
|
Other Income |
200,974,443 |
162,280,231 |
|
Total Revenues |
22,429,935,600 |
20,723,435,366 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods Sold |
19,498,156,609 |
16,823,000,680 |
|
Selling & Administrative Expenses |
1,421,806,440 |
1,554,098,205 |
|
Interest Expenses |
193,676,306 |
362,030,904 |
|
Total Expenses |
21,113,639,355 |
18,739,129,789 |
|
|
|
|
|
Profit / [Loss] from Operation |
1,316,296,245 |
1,984,305,577 |
|
Gain on Liquidation of Subsidiary |
- |
19,125,136 |
|
Profit / [Loss] from Diminution |
3,631,421 |
[20,075,102] |
|
|
|
|
|
Profit / [Loss] from Operation - Net |
1,319,927,666 |
1,983,355,611 |
|
Income Tax |
[8,706,736] |
[682,347,222] |
|
|
|
|
|
Net Profit / [Loss] |
1,311,220,930 |
1,301,008,389 |
|
Retained Earning [Deficit], beginning of year |
[93,319,444] |
[1,394,327,833] |
|
Retained Earning
[Deficit], end of year |
1,217,901,486 |
[93,319,444] |
FINANCIAL NOTES
NOTE 1 : Trade Accounts
Receivable
|
|
2004 |
2003 |
|
|
|
|
|
Trade Accounts Receivable |
1,041,163,164 |
1,035,187,671 |
|
Less: Provision for Doubtful Accounts |
[16,106,978] |
[5,675,602] |
|
|
|
|
|
Total |
1,025,056,186 |
1,029,512,069 |
Trade Account
Receivables as at
December 31, 2004
and 2003 are
classified by aging
of payment as
follows:
|
|
2004 |
2003 |
|
|
|
|
|
Not over 3 months |
992,290,688 |
985,535,998 |
|
Over 3 months |
48,872,476 |
49,651,673 |
|
Less: Provision for Doubtful Debt |
[16,106,978] |
[5,675,602] |
|
Total |
1,025,056,186 |
1,029,512,069 |
NOTE 2 : Inventories
|
|
2004 |
2003 |
|
|
|
|
|
Raw Material |
1,203,272,773 |
727,760,505 |
|
Packaging |
42,786,549 |
52,838,570 |
|
Spare Parts |
313,774,670 |
368,694,089 |
|
Work in Progress |
31,550,864 |
16,417,282 |
|
Finished Goods |
2,127,927,425 |
1,262,611,605 |
|
Goods in Transit |
210,243,173 |
263,892,817 |
|
Total |
3,929,555,454 |
2,695,497,124 |
|
Less: Provision for Obsolete Goods |
[140,111,210] |
[30,039,665] |
|
Total |
3,789,444,244 |
2,662,175,203 |
NOTE 3 : Fixed Assets
|
|
2004 |
2003 |
|
|
|
|
|
Land & Building |
5,550,002,134 |
6,494,550,536 |
|
Machinery & Equipment |
8,893,267,153 |
10,608,655,480 |
|
Office Furniture & Vehicle |
616,750,275 |
642,603,308 |
|
Work under Construction |
46,771,908 |
4,343,719 |
|
Less: Depreciation |
[4,099,121,820] |
[3,683,250,314] |
|
Total |
11,007,669,650 |
14,066,902,729 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2004 |
2003 |
|
Sales |
13.13 |
|
|
Operating |
[5.15] |
|
|
Net Profit |
0.78 |
|
|
Fixed Assets |
[21.75] |
|
|
Total Assets |
[3.77] |
|
|
Profitability |
|
|
|
Cost of Goods Sold |
87.72 |
85.61 |
|
Operating Profit Margin |
12.28 |
14.39 |
|
S&A expenses |
6.40 |
7.91 |
|
Interest |
0.87 |
1.84 |
|
Other Revenues |
0.90 |
5.46 |
|
Net Profit Margin |
5.90 |
6.62 |
|
Earning Per Shares |
176.20 |
174.83 |
|
No. of Shares |
7,441,590 |
7,441,590 |
Net Sales was
increased by 13.13%,
Operating Profit was
decreased by 5.15%,
Net Profit was
increased by 0.78%,
Fixed Assets was
decreased by 21.75%,
Total Assets was
decreased by 3.77%.
Compare each cost
with sales, Cost
of Goods Sold
was increased from
85.61% to 87.72%,
Operating Profit Margin
was decreased from
14.39% to 12.28%,
S & A
Expenses were decreased
from 7.91% to
6.40%, Interest Paid
was decreased from
1.84% to 0.87%,
Other Revenues was
decreased from 5.46%
to 0.90%, Net
Profit Margin was
decreased from 6.62%
to 5.90%.
Earning Per Shares was increased from 174.83 baht per share to 176.20 baht per share.
Liquidity
|
Liquidity |
2004 |
2003 |
|
Current Ratio |
0.95 |
0.58 |
|
Quick - assets ratio |
0.49 |
0.32 |
Current Ratio was increased from 0.58 to 0.95, show Current Assets can not cover Current Liabilities, Liquidity Ratio of the company was not good, and Quick-assets Ratio was increased from 0.32 to 0.49, capacity to pay Short Term Loan was not good too, because Current Assets without Inventory can not cover Current Liabilities.
Leverage
|
Leverage |
2004 |
2003 |
|
D/E Ratio |
1.08 |
1.49 |
|
Times Interest Earned |
6.76 |
3.52 |
D/E Ratio was
decreased from 1.49
to 1.08, show
the company had
fund from Loan
more than fund
from Equity, investment
risked of the
company is medium
and Times Interest
Earned was increased
from 3.52 to
6.76, capacity to
pay interest paid
was good.
Efficiency
|
Efficiency |
2004 |
2003 |
|
Fixed Assets Turnover |
2.02 |
1.40 |
|
Total Assets Turnover |
1.10 |
0.94 |
|
Return on Assets |
6.49 |
6.19 |
|
Return on Equity |
13.47 |
15.45 |
|
Day’s Payable |
23.64 |
27.30 |
|
Day’s Inventories |
70.94 |
57.76 |
|
Days’ Receivables |
16.83 |
19.12 |
Fixed Assets Turnover
was increased from
1.40 times to
2.02 times, Total
Assets Turnover was
increased from 0.94
times to 1.10
times, show the
company could use
Assets so efficiently, and Return on
Assets was increased
from 6.19 to
6.49, Return on
Equity was decreased
from 15.45 to
13.47, capacity to
use Assets to
make profit was
good.
Day’s Payable was decreased from 28 days to 24 days, while Day’s Inventories was increased from 58 days to 71 days, but Day’s Receivables was decreased from 20 days to 17 days.
RATING EXPLANATIONS
RATING
|
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely
sound financial base with the strongest capability for timely payment of
interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate
working capital. No caution needed for credit transaction. It has above
average (strong) capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial &
operational base are regarded healthy. General unfavourable factors will not
cause fatal effect. Satisfactory capability for payment of interest and
principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable &
favourable factors carry similar weight in credit consideration. Capability
to overcome financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are
apparent. Repayment of interest and principal sums in default or expected to
be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk
exists. Caution needed to be exercised |
Credit not recommended |