MIRA INFORM REPORT
|
Report Date : |
24.07.2008 |
IDENTIFICATION
DETAILS
|
Name : |
TPI POLENE PUBLIC
COMPANY LIMITED |
|
|
|
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Registered Office : |
26/56
Chan Tadmai Road,
Tungmahamek, Sathorn, Bangkok
10120 |
|
|
|
|
Country : |
Thailand |
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|
|
|
Financials (as on) : |
31.12.2007 |
|
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|
Year of Establishment : |
1987 |
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|
|
|
Com. Reg. No.: |
0107537000564 [Former: BOR. MOR. JOR. 303] |
|
|
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|
Legal Form : |
Public
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor and Exporter of Plastic Resin & Cement Products |
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 |
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|
|
|
Payment Behaviour : |
No Complaints |
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Litigation : |
Exists |
Name
TPI POLENE
PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 26/56 CHAN TADMAI ROAD,
TUNGMAHAMEK,
SATHORN, BANGKOK
10120, THAILAND
TELEPHONE : [66] 2213-1039,
2285-5090
FAX : [66] 2213-1035,
2213-1038, 2213-1012
WEB ADDRESS : http://www.tpipolene.com
EMAIL ADDRESS : wmasters@tpipolene.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1987
REGISTRATION NO. : 0107537000564 [Former : BOR. MOR. JOR. 303]
CAPITAL REGISTERED : BHT. 24,815,000,000
CAPITAL PAID-UP : BHT. 20,190,000,000
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED COMPANY
EXECUTIVE : MR.
PRACHAI LEOPHAIRATANA, THAI
CHIEF EXECUTIVE
OFFICER
NO. OF
STAFF : 4,691
LINES OF
BUSINESS : PLASTIC
RESIN & CEMENT
PRODUCTS
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
FOR NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was
established on September
24, 1987 as
a private limited
company under the registered name
“Polene Co., Ltd.” by
Thai groups, in
order to manufacture
plastic resin &
cement products for
local market. On October
24, 1989, the
name was changed
to “TPI Polene Co.,
Ltd.”
The subject was
listed on the
Stock Exchange of
Thailand on November
20, 1990, and converted
into public limited
company under the
name TPI POLENE
PUBLIC COMPANY LIMITED
on February 17,
1994. It currently
employs 4,691 staff.
The subject is
the Thailand’s biggest
LDPE plastic resin
manufacturer.
The subject is
currently under the
rehabilitation plan.
Awards and Standards
Concrete Business
-
ISO 14001 Certification for Quality Management Systems in the Environmental
Protection,
from Bureau Veritas
Quality International
-
TIS/ISO 9002 Certification for Manufacture, Installation and Service Standard, from
ISO Standard Institute
[TIS]
LDPE/EVA Business
-
ISO 9001:2000 Certification for the
entire production process,
from ISO Standard
Institute [TPS]
-
TIS 18001 Certification for
Occupational Health and
Safety Management from
the Management System
Certification Institute [Thailand]
[MASCI]
The
subject’s registered address
is 25/56 Chan
Tadmai Rd., Tungmahamek, Sathorn, Bangkok 10120, and
this is the
company’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality
|
Age
|
|
|
|
|
|
|
Mr. Prachai Leophairatana |
[x] |
Thai |
64 |
|
Mr. Prateep Leophairatana |
[x] |
Thai |
62 |
|
Mr. Pramual Leophairatana |
[x] |
Thai |
59 |
|
Mr. Prayad Leophairatana |
[x] |
Thai |
57 |
|
Mr. Chawin Eiamsopana |
[x] |
Thai |
66 |
|
Mr. Chainarong Taepaisitpong |
[x] |
Thai |
66 |
|
Mr. Kitti Wongchringtrong |
[x] |
Thai |
53 |
|
Mr. Visit Noiphand |
|
Thai |
75 |
|
Mrs. Boonsri Leophairatana |
[x] |
Thai |
86 |
|
Mrs. Narasri Vaivanijkul |
|
Thai |
75 |
|
Ms. Suchitra Taychanavakul |
[x] |
Thai |
84 |
|
Mrs. Orapin Leophairatana |
[x] |
Thai |
61 |
|
Pol. Gen. Charnchit Peanlert |
|
Thai |
64 |
|
Mr. Manus Suksamarn |
|
Thai |
73 |
|
Mr. Pises Iamsakulrat |
|
Thai |
44 |
AUTHORIZED PERSON
Two of the mentioned directors
[x] can jointly
sign on behalf
of the subject with the
company’s affixed.
MANAGEMENT
Mr. Prachai
Leophairatana is the
Chief Executive Officer.
He is Thai nationality
with the age of 64
years old.
Mr. Prayad
Leophairatana is the
President.
He is Thai nationality
with the age of 57
years old.
Mr. Prateep Leophairatana is
the President -
LDPE Business.
He is Thai
nationality with the age
of 62 years old.
Mr. Pramual
Leophairatana is the
President - LDPE
Business.
He is Thai nationality
with the age of 59
years old.
Mrs. Orapin Leophairatana is
the Senior Vice
President.
She is Thai
nationality with the
age of 61 years old.
Mr. Prasert
Ittimakin is the Senior Vice
President - Account & Finance Division.
He is Thai nationality.
Ms. Jularat
Danwattanachai is the
Vice President -
Account & Finance
Department.
She is Thai
nationality.
Mr. Anugoon
Piyapakom is the Assistant Vice
President - Account Department.
He is Thai nationality.
Mr. Pongsak
Yiengsakun is the Assistant Vice
President - Finance
Department.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer and distributor
of Low Density Poly Ethylene
[LDPE] plastic resin
for use in
the production of
plastic bags, sheets
for agriculture, artificial
flowers, water pipes
and wrapping; as well
as Ethylene Vinyl
Acetate [EVA] which
is the copolymer between LDPE
and Vinyl Acetate
Monomer and Plastic
Resin.
The subject is
also a manufacturer of powder
cement and pellet
cement products.
MAJOR BRANDS
“TPI” and “M-199”
TRADEMARK
“TPIPL”
PRODUCTION
LDPE : 158,000
tons per year
EVA : 73,000
tons per year
Powder Cement :
9,000,000 tons per year
Pellet Cement : 6,882,768 tons per
year
IMPORT [COUNTRIES]
Most of raw material is purchased from local suppliers, the remaining including machinery and spare parts are imported from United States of America, Singapore, Indonesia, Germany and other European countries.
MAJOR SUPPLIERS
|
Name |
Country |
Products |
|
|
|
|
|
Krupp Polysius GmbH |
Germany |
Machinery |
|
IRPC Public Co., Ltd.
|
Thailand |
Chemical |
|
Uhde GmbH |
Germany |
Machinery |
|
PET Putz-Und Fordertechnik GmbH |
Germany |
- |
SALES [LOCAL]
78% of
the products is
sold locally to
manufacturers, wholesalers and
end-users, and the remaining 22% is
exported to Malaysia, Singapore, Korea,
Philippines, Taiwan, Japan, Hong
Kong, Republic of
China, Vietnam, Laos and
United States of
America.
MAJOR CUSTOMER
TPI Concrete Co.,
Ltd.
SUBSIDIARY
TPI Concrete
Co., Ltd.
Business Type : Manufacturing and distribution of
ready mixed-concrete.
Investment : The
subject holds 99.99%
of the company’s shares.
LITIGATIONS
Bankruptcy and Receivership
On August 21,
2000, the Central
Bankruptcy Court has
ordered the Company
to enter into
business rehabilitation and
appointed the Company
to be the Planner according
to the lawsuit red case
no. 627/2543. As a
result of such
Court order, the
power and duties
in managing the
business and asset
of the company’s directors, including
all legal rights
of the company’s
shareholders shall be
vested in the Planner according to Article 90/59
of Bankruptcy Act
B.E. 2483.
On February
9, 2001, the
Court approved the
rehabilitation plan and
assigned the Company
to be the Plan Administrator. As a result of
such Court order,
the power and
duties of the
Planner shall be
vested in the Plan
Administrator according to
Article 90/59 of
Bankruptcy Act B.E.
2483.
Operating Performance
and Financial Summary
In 2006, the
company and subsidiaries earned the income
from selling of Bht.
22,630 million, an
increase of 5.86%
from Bht. 21,304
million in 2005.
This revenue mainly
come from selling
of cement, plastic
resin and concrete
whose selling price
was driven higher
comparing to the
previous year.
Total revenue of
the company has
increased from Bht.
22,871 million in
2005 to Bht.
26,324 million in
2006 or an
increase of 13.12%.
This is mainly
due to an increase in
selling and gain
from exchange rate
for the amount of
Bht. 1,792 million.
Cost of sale
in 2006 was
driven higher from
the same period
of 2005 resulted
in a decrease in the
fundamental profit from 26.85%
in 2005 to
23.42% in 2006.
This was mainly due
to an increase of the
production cost. The
company has profit
from normal operation
at Bht. 1,544
million in 2006,
an increase of
Bht. 20.72% from
Bht. 1,279 million
in 2005, and
net profit of
Bht. 2,780 million
in 2006 [net
profit per share
at Bht. 2.27]
an increase of
Bht. 82.65% comparing to
net profit of
Bht. 1,522 million in
2005 [net profit
per share at
Bht. 1.93] This
was mainly because
in 2006 there was
an increase in
the gain of
exchange rate and
a decrease in
interest payment burden.
This was because
the company has
made the repayment
of the principal debt to creditors
according to the
debt restructuring agreement
at the amount of Bht.
13,726 million in
2006.
In 2006,
the Company possessed
total assets of
Bht. 68,458 million,
decreasing from the same
period of 2005
by 3.17% from
Bht. 70,699 million.
The Company’s total
debt reduced from
Bht. 34,806 million
to Bht. 19,314
million at the
end of 2005 and 2006
respectively or a
decrease of Bht.
15,492 million or
44.51%. This was
because the Company
had made repayment
of principal debt
to the creditors according to
the debt restructuring agreement at the
amount of Bht.
13,726 million in
2006. Due to
this, the financial debt
according to the
debt restructuring agreement
in term of
principal debt burden
was reduced from
Bht. 25,206 million
at the end of 2005
to Bht. 10,129
million at the end
of 2006.
At the end of 2006, the
financial debt burden
at the amount of
Bht. 10,129 million according
to the debt restructuring agreement
must be made
repayment within December
31, 2007.
At present, the
company is under
the debt rehabilitation plan. The Company
acts as a
Plan Administrator by
receiving the approval
from creditors and
was assigned by
the Central Bankruptcy Court.
The Rehabilitation Plan of the
Company
1. To find
the capital for at least
US$ 180 million in
cash in order
to repurchase the
debt at discount
price. However, the
company has already
completed this process.
2. To find
the capital of
another US$ 90
million [an increase
from US$ 180 million in no. 1] to
be used for
repayment of the
construction of cement
factory - project no.
4 which the
company has already
made investment of
Bht. 3,000 million
in some part,
in order to
complete the project.
At present, such
project is under
feasibility study of investment and
source of investment
according to the
debt restructuring agreement.
3. To be
able to pay
accrued interest on
loan and outstanding
guarantee fee at
the end of
November 30, 1999.
At present, the
Company has completed this
process.
4. To enable
the Company and
TPI Concrete Co.,
Ltd. to extend
the debt repayment
period in order
to settle the
whole debt. At
present, the debt
repayment period has
been extended for
another 1 year
ended at December
31, 2007.
5. To enable
the Company to
rehabilitate the organization and be back
to normal operation
as soon as
possible in order
to compete and
operate the business
in the long run.
Schedule of Debt
Repayment to Creditors
according to Debt
Restructuring Agreement
|
Date |
Debt Repayment |
|
|
|
|
March 31, 2007 |
Debt Repayment of
US$ 10 million |
|
June 30, 2007 |
Debt Repayment of
US$ 10 million |
|
December 31, 2007 |
Debt Repayment of
the Outstanding Amount |
Interest Rate under
Debt Restructuring Agreement
|
Currency |
2000 -
2002 |
2003 -
2004 |
2005 -
2007 |
|
|
|
|
|
|
Baht |
MLR |
MLR +
0.5% |
MLR +
1.5% |
|
Foreign Currency |
LIBOR +
1.5% |
LIBOR +
2% |
LIBOR +
3% |
Other Conditions
The Company cannot
pay dividend to
the shareholders until
after December 31,
2004 or after
the company has
made debt repayment
to creditors at
85% of the outstanding debt
according to debt
restructuring agreement. In
addition, the Company
must have retained
earning and dividend
payment must not
exceed 30% of
cash reserve.
In case of
selling secured assets
at that time
or non-perfect security
[later is mortgaged
to secured creditor].
Cash obtained from
selling these assets
must be made
repayment to secured
creditors. The excess
is to be made to
non-secured creditors according to the proportion.
The Company is
able to maintain
cash liquidity in
its operation at
least Bht. 1,600
million during the
plan.
The creditor is
able to transfer
total debt by
having the debt
transferee to commit
and follow according
to the debt restructuring agreement.
The Company as
the Plan Administrator must proceed the
Company and TPI
Concrete Co., Ltd.
to comply and
follow the debt
restructuring agreement and other
related issues as
agreed under debt
restructuring agreement.
Additional Information
The company, in
its capacity as
Plan administrators, is
in the process of
implementing the amended rehabilitation plan. The amended
plan included an
extension of the
rehabilitation plan period
to December 31, 2007.
Under the Debt Restructuring, Agreement, the
Company was required to pay the
outstanding amount of
debts to the creditors by December 31, 2007.
However, on 11
December 2007, the
Central Bankruptcy Court issued an order to
approve the further extension
of the implementation
period of the
Rehabilitation Plan of the
Company is now
required to pay
the outstanding amount
of debts to
the creditors by 31
December 2008. These
circumstances may have
an effect on
the Company’s financial
statements.
CREDIT
Purchasing terms are
by cash or
on the credits term of
30-90 days.
Imports are by
L/C at sight or T/T
on negotiated term.
Selling terms are
by cash or
on the credits term of
30-60 days.
Exports are against
L/C at sight or T/T
on negotiated term.
BUSINESS TRANSACTIONS
The products
are sold to
local customers by
cash and credit,
with the maximum
credit given at
60 days, while
exports are against L/C
at sight or
T/T on negotiated term. The subject
is not found to have
problem on both
accounts receivable and account
payable.
BANKING
Bangkok Bank
Public Co., Ltd.
[Head Office :
333 Silom Rd., Bangrak, Bangkok 10500]
Krung Thai
Bank Public Co.,
Ltd.
[Head Office :
35 Sukhumvit Rd.,
Klongtoeynua, Watana, Bangkok
10110]
The Siam
Commercial Bank Public
Co., Ltd.
[Head Office :
9 Ratchadapisek Rd.,
Ladyao, Jatujak, Bangkok
10900]
Deutsche
Bank AG
[Bangkok Branch : 208
Wireless Rd., Lumpini,
Pathumwan, Bangkok 10500]
The Hongkong
& Shanghai Banking
Corporation
[Bangkok Branch :
968 Hong Kong
Bank Bldg., Rama
IV Rd., Silom,
Bangrak, Bangkok 10500]
EMPLOYMENT
The subject employs
approximately 4,691 staff
as the followings:
Cement Business :
4,289 staff
PVC Resin Business : 328 staff
Management Team :
74 staff
Total 4,691 staff
LOCATION DETAILS
The premise is
owned for administrative office at the
heading address. It
is located in
a prime commercial
area.
The Cement Plant
is located at
299 Mitrapap Rd.,
TPI Polene Industrial
Complex, A. Kleangkoy,
Saraburi 18110. Tel.: [66]
36 339-036-40, 36
339-111-175. Premised located on
1,280,000 sqm. of
area.
The LDPE Plant
is located at
299 Moo 5,
T. Cheang-Noen, A.
Muang, Rayong 21000.
Tel.: [66] 38
611-333. Premised locate
on 68,000 sqm.
of area.
COMMENT
The company reported
its net profit
of 2007 less
than 2006 followed
analysis’ earlier expectations from factors like
economic slowdown, higher
fuel prices, higher
raw materials costs
and operating expenses.
FINANCIAL INFORMATION
The capital was registered at Bht. 100,000,
divided into 1,000 shares of
Bht. 100 each.
The capital was
increased later as
followings:
Bht. 1,200,000,000 on February 10,
1990
Bht. 1,350,000,000 on September 7,
1990
Bht. 1,450,000,000 on July 23,
1991
Bht. 1,933,333,330 on January 15,
1993
Bht. 2,700,000,000 in 1996
Bht. 5,307,000,000 in 1997
The latest registered
was increased to
Bht. 24,815,000,000 divided
into 2,481,500,000 shares
of Bht. 10 each
with the capital
paid-up of Bht.
20,190,000,000.
MAIN SHAREHOLDERS : [as
at September 14, 2007]
at Bht. 20,190,000,000 of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Thai Petrochemical Industrial Co., Ltd. |
275,269,816 |
13.63 |
|
Leophairatana Enterprises Co.,
Ltd. |
161,913,997 |
8.02 |
|
Thai NVDR Co.,
Ltd. |
114,982,075 |
5.70 |
|
Nortrust Nominees Limited-Northern Trust Guernsey |
94,840,329 |
4.70 |
|
Mr. Pakorn Leophairatana |
85,436,000 |
4.23 |
|
Mrs. Orapin Leophairatana |
84,916,224 |
4.21 |
|
Mr. Prayad Leophairatana |
80,400,000 |
3.98 |
|
Mr. Pramual Leophairatana |
80,400,000 |
3.98 |
|
Mrs. Boonsri Leophairatana |
80,400,000 |
3.98 |
|
Bangkok Bank Public
Co., Ltd. |
65,769,324 |
3.26 |
|
TPI Holding Co.,
Ltd. |
62,251,884 |
3.08 |
|
Others |
832,420,351 |
41.23 |
Total Shareholders : 12,436
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO. :
Mr. Winid Silamongkol
No. 3378
KPMG Phoomchai Audit
Ltd.
Bangkok
BALANCE SHEET [BAHT]
The latest financial figures published as at
December 31, 2007 &
2006 were:
ASSETS
[In Thousand
Baht]
|
Current Assets |
2007 |
2006 [Restated] |
|
|
|
|
|
Cash and cash
equivalents |
540,320 |
264,286 |
|
Trade account receivable |
1,422,619 |
1,270,513 |
|
Short-term loans to
related party |
216,837 |
288,374 |
|
Advances to related parties |
23,674 |
12,884 |
|
Inventories |
4,539,789 |
5,212,262 |
|
Deposits for debt
repurchase |
309,141 |
327,209 |
|
Court deposits for
debt repurchase |
2,778,829 |
2,778,829 |
|
Other Current Assets
|
475,025 |
477,075 |
|
|
|
|
|
Total Current
Assets |
10,306,234 |
10,631,432 |
|
Investments in subsidiaries, joint venture And associated
companies |
1,908,008 |
1,308,008 |
|
Long-term investments in
related parties |
150,370 |
150,370 |
|
Other long-term investments |
454,885 |
410,558 |
|
Receivable from and
advance to related parties |
637,961 |
822,209 |
|
Property, plant and
equipment |
59,244,466 |
53,113,665 |
|
Intangible assets |
390,773 |
412,224 |
|
Other non-current assets |
765,836 |
761,706 |
|
Total Assets |
73,858,533 |
67,610,172 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
[In Thousand
Baht]
|
Current Liabilities |
2007 |
2006 [Restated] |
|
|
|
|
|
Bank overdraft and
short-term loan from financial institutions |
303,704 |
287,579 |
|
Trade accounts payable |
1,778,316 |
1,507,228 |
|
Current portion of
long-term liabilities under
debt restructuring |
7,809,825 |
9,537,167 |
|
Long-term liabilities under
debt restructuring under consideration by the court |
3,601,856 |
3,810,876 |
|
Short-term loans from
related party |
1,534 |
1,565 |
|
Advances from related
parties |
2,966 |
5,503 |
|
Accrued interest payable
under the master restructuring agreement |
1,705,561 |
1,473,820 |
|
Accrued default interest
payable amortized within one
year |
83,704 |
489,124 |
|
Accrued income tax |
130,607 |
293,032 |
|
Other current liabilities |
1,381,133 |
1,204,384 |
|
|
|
|
|
Total Current
Liabilities |
16,799,206 |
18,610,278 |
|
|
|
|
|
Provision for staff
retirement benefits |
75,387 |
42,149 |
|
Other non-current liabilities |
195,204 |
195,204 |
|
Total Liabilities |
270,591 |
237,353 |
|
Total non-current liabilities |
17,069,797 |
18,847,631 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
[In Thousand
Baht]
|
|
2007 |
2006 [Restated] |
|
|
|
|
|
Shareholders'
Equity |
|
|
|
Share capital |
|
|
|
Authorized share
capital |
24,815,000 |
24,815,000 |
|
Issued and
paid-up share capital |
20,190,000 |
20,190,000 |
|
Reserves Share premium |
60,600 |
60,600 |
|
Surplus on
assets revaluation |
32,651,207 |
26,258,534 |
|
Revaluation surplus [deficit] on
available- for-sale securities - Company |
[130,637] |
[143,652] |
|
Unappropriated Retained Earnings |
4,017,566 |
2,397,059 |
|
Total Shareholders’ Equity
|
56,788,736 |
48,762,541 |
|
Total
Liabilities & Shareholders' Equity |
73,858,533 |
67,610,172 |
PROFIT & LOSS ACCOUNT
[In Thousand
Baht]
|
Revenue |
2007 |
2006 [Restated] |
|
|
|
|
|
Revenues from sales
of goods |
21,517,135 |
20,024,927 |
|
Delivery income |
1,149,881 |
1,192,790 |
|
Net foreign exchange
gain |
394,817 |
1,756,358 |
|
Other income |
592,701 |
866,025 |
|
Total Revenues
|
23,654,534 |
23,840,100 |
|
Expenses |
|
|
|
|
|
|
|
Cost of sales
of goods |
16,412,154 |
15,287,548 |
|
Selling and administrative expenses |
4,674,421 |
4,458,102 |
|
Total Expenses |
21,086,575 |
19,745,650 |
|
|
|
|
|
Profit before interest
and income tax
expenses |
2,567,959 |
4,094,450 |
|
Interest expenses under
the master restructuring agreement |
[593,733] |
[1,061,075] |
|
Income tax |
[151,819] |
[536,474] |
|
|
|
|
|
Net Profit / [Loss] |
1,822,407 |
2,496,901 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2007 |
2006 |
|
Net Sales |
7.45 |
|
|
Operating Profit |
[41.63] |
|
|
Net Profit |
[27.01] |
|
|
Fixed Assets |
11.54 |
|
|
Total Assets |
9.24 |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
76.27 |
76.34 |
|
Operating Profit Margin |
11.93 |
20.45 |
|
S & A
Expenses |
21.72 |
22.26 |
|
Interest Paid |
2.76 |
5.30 |
|
Other Revenues |
9.93 |
19.05 |
|
Net Profit Margin |
8.47 |
12.47 |
Net Sales was
increased by 7.45%,
Operating Profit was decreased by
41.63%, Net Profit
was decreased by
27.01%, Fixed Assets
was increased by
11.54%, Total Assets
was increased by
9.24%.
Compare each cost
with sales, Cost of
Good Sold was
decreased from 76.34%
to 76.27%, Operating
Profit Margin was
decreased from 20.45%
to 11.93%, S
& A Expenses
was decreased from
22.26% to 21.72%,
Interest Paid was decreased
from 5.30% to
2.76%, Other Revenues
was decreased from
19.05% to 9.93%,
Net Profit Margin
was decreased from
12.47% to 8.47%.
Liquidity
|
Liquidity |
2007 |
2006 |
|
Current Ratio |
0.61 |
0.57 |
|
Quick-Assets Ratio |
0.13 |
0.10 |
Current Ratio was
increased from 0.57 to 0.61, show
Current Assets can
not cover Current
Liabilities, Liquidity Ratio
of the company was not
good, Quick-Assets Ratio
was increased from
0.10 to 0.13,
capacity to pay
Short Term Loan
was not good
too, because Current
Assets without Inventory
can not cover
Current Liabilities.
Leverage
|
Leverage |
2007 |
2006 |
|
D/E Ratio |
0.00 |
0.00 |
|
Times Interest Earned |
4.33 |
3.86 |
D/E Ratio was
increased from 0.00
to 0.00, show
the company had
fund from Equity
more than fund
from Loan, investment
risked of the
company is low,
Times Interest Earned
was increased from
3.86 to 4.33,
capacity to pay
interest paid was
good.
Efficiency
|
Efficiency |
2007 |
2006 |
|
Fixed Assets Turnover |
0.36 |
0.38 |
|
Total Assets Turnover |
0.29 |
0.30 |
|
Return on Assets |
2.47 |
3.69 |
|
Return on Equity |
2.48 |
3.71 |
|
Day's Payable |
29.75 |
27.10 |
|
Day’s Inventories |
75.95 |
93.70 |
|
Day’s Receivables |
23.80 |
22.84 |
Fixed Assets Turnover
was decreased from
0.38 times to
0.36 times, Total
Assets Turnover was
decreased from 0.30
times to 0.29
times, show the
company could not
use Assets so
efficiently, Return on
Assets was decreased
from 3.69 to
2.47, Return on
Equity was decreased
from 3.71 to
2.48, capacity to
use Assets to
make profit was
good.
Day's Payable was
increased from 28
days to 30
days, while Day’s
Inventories was decreased
from 94 days
to 76 days, but Day’s
Receivables was increased
from 23 days
to 24 days.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.41.96 |
|
UK Pound |
1 |
Rs.83.78 |
|
Euro |
1 |
Rs.65.82 |
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. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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 and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)