MIRA INFORM REPORT
|
Report Date : |
08.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
IVAX
PAPER CHEMICALS LIMITED |
|
|
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Registered Office : |
150
Moo 10, T. Thatoom,
A. Srimahaphote, Prachinburi
25140 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
13.06.2005 |
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Com. Reg. No.: |
0105548076751 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Distributor and Exporter of Specialty Chemical |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
Thailand |
b1 |
b1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
IVAX
PAPER CHEMICALS LIMITED
SUMMARY
BUSINESS
ADDRESS : 150
MOO 10, T. THATOOM,
A. SRIMAHAPHOTE,
PRACHINBURI 25140,
THAILAND
TELEPHONE : [66] 37
274-439
FAX :
[66] 37
274-438
E-MAIL
ADDRESS : salesthai@ivaxchem.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2005
REGISTRATION
NO. : 0105548076751
CAPITAL REGISTERED : BHT. 40,000,000
CAPITAL PAID-UP : BHT.
40,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. MAHAVEER RAJ
NAHATA, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 80
LINES
OF BUSINESS : SPECIALTY CHEMICAL
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 June 13, 2005
as a private
limited company under the
registered name IVAX
PAPER CHEMICALS LIMITED by
foreign groups. Its business
objective is to manufacture,
distribute and export of
specialty chemicals for
paper industry. It
currently employs approximate
80 staff.
The subject’s registered address is 150 Moo 10, T. Thatoom,
A. Srimahaphote, Prachinburi 25140,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Meera Devi Nawalgaria |
|
Indian |
60 |
|
Mr. Sharad Kumar Nawalgaria |
|
Indian |
32 |
|
Mr. Kirti Kumar |
|
Indian |
64 |
|
Mr. Mahaveer Raj Nahata |
|
Indian |
62 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Mahaveer Raj Nahata
is the Managing
Director.
He is Indian
nationality with the
age of 62
years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing, distributing and
exporting of specialty
chemical for paper
application. Its products are
Rosin Soap, Rosin Emulsion, Alkenyl
Ketene Dimmer Emulsion,
Styrene Maleic, Anhydride
Emulsion, Starch Polymer
and etc.
PURCHASE
Most of raw
materials are purchased
from local suppliers,
the remaining as
well as machinery
are imported from
India, United Kingdom, and
United Arab Emirates.
MAJOR SUPPLIERS
Ivax
Paper Chemicals Ltd. : India
Ivax
Paper Chemicals Ltd. : U.K.
Ivax
Paper Chemical International
Ltd. : United
Arab Emirates
SALES
80% of the
products is sold
locally to manufacturers
and end-users, the
remaining 20% is
exported to United Kingdom.
SUBSIDIARY AND AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
nor 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 for the
past two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
The subject
was not disclosed
its banker’s name.
EMPLOYMENT
The
subject employs approximately
80 staff.
LOCATION DETAILS
The premise is owned for
administrative office and factory
at the heading
address. Premise is
located in provincial.
Bangkok
Branch : 20/20 Yannawa
Rd., Chongnonsi, Yannawa,
Bangkok 10120.
Tel. :
[66] 2683-3882, Fax. :
[66] 2683-3883.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
50,000.
COMMENT
Subject
reported outstanding dropped
its sales in
2010 compared to
the previous year
in accordance with
market sluggish, that
resulted to end up
with negative outcome.
However,
its products are
ready to grow
in parallel with expansion
of paper industry.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 40,000,000 divided
into 400,000 shares
of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at April
30, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ivax Paper Chemicals
International Ltd. Nationality: Arab Address : United
Arab Emirates |
2,280,250 |
57.00 |
|
Ivax Paper Chemicals
Pvt. Ltd. Nationality: Indian Address : India |
1,200,000 |
30.00 |
|
Mr. Sharad Kumar Nawalgaria Nationality: Indian Address : India |
262,375 |
6.50 |
|
Mr. K.K. Kumar Nawalgaria Nationality: Indian Address : India |
257,375 |
6.50 |
Total Shareholders : 4
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO. :
Ms. Aruchida Lohzen
No. 10192
BALANCE SHEET [BAHT]
The latest
financial figures published
for December 31,
2010 & 2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalent |
27,410,420.63 |
19,918,411.04 |
|
Trade Accounts Receivable |
62,060.00 |
22,001,324.09 |
|
Inventories |
25,212,225.58 |
13,665,101.84 |
|
Short-term Loan to Person or Related Company |
- |
90,000.00 |
|
Other Current Assets |
2,170,002.52 |
556,839.34 |
|
|
|
|
|
Total Current Assets
|
54,854,708.73 |
56,231,676.31 |
|
|
|
|
|
Fixed Assets |
13,328,023.80 |
23,502,341.85 |
|
Total Assets |
68,182,732.53 |
79,734,018.16 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Trade Accounts Payable |
5,932,786.45 |
13,853,613.22 |
|
Other Current Liabilities |
568,108.00 |
154,942.41 |
|
|
|
|
|
Total Current Liabilities |
6,500,894.45 |
14,008,555.63 |
|
Accrued Guarantee |
1,086,707.64 |
1,086,707.64 |
|
Hire-purchase Payable, net of Current Portion |
344,048.27 |
640,692.43 |
|
Total Liabilities |
7,931,650.36 |
15,735,955.70 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 4,000,000 shares |
40,000,000.00 |
40,000,000.00 |
|
|
|
|
|
Capital Paid |
40,000,000.00 |
40,000,000.00 |
|
Retained Earning-
Unappropriated |
20,251,082.17 |
23,998,062.46 |
|
Total Shareholders' Equity |
60,251,082.17 |
63,998,062.46 |
|
Total Liabilities & Shareholders' Equity |
68,182,732.53 |
79,734,018.16 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales |
26,727,079.42 |
90,901,227.34 |
|
Other Income |
3,024,202.37 |
4,992,153.04 |
|
Total Sales |
29,751,281.79 |
95,893,380.38 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
19,763,064.52 |
69,533,846.43 |
|
Selling Expenses |
2,743,074.03 |
- |
|
Administrative Expenses |
10,992,123.53 |
10,714,536.88 |
|
Total Expenses |
33,498,262.08 |
80,248,383.31 |
|
|
|
|
|
Net Profit / [Loss] |
[3,746,980.29] |
15,644,997.07 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
8.44 |
4.01 |
|
QUICK RATIO |
TIMES |
4.23 |
2.99 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.01 |
3.87 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.39 |
1.14 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
465.64 |
71.73 |
|
INVENTORY TURNOVER |
TIMES |
0.78 |
5.09 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
0.85 |
88.34 |
|
RECEIVABLES TURNOVER |
TIMES |
430.67 |
4.13 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
109.57 |
72.72 |
|
CASH CONVERSION CYCLE |
DAYS |
356.92 |
87.35 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
73.94 |
76.49 |
|
SELLING & ADMINISTRATION |
% |
51.39 |
11.79 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
37.37 |
29.00 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(14.02) |
17.21 |
|
NET PROFIT MARGIN |
% |
(14.02) |
17.21 |
|
RETURN ON EQUITY |
% |
(6.22) |
24.45 |
|
RETURN ON ASSET |
% |
(5.50) |
19.62 |
|
EARNING PER SHARE |
BAHT |
(0.94) |
3.91 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.12 |
0.20 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.13 |
0.25 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(70.60) |
|
|
OPERATING PROFIT |
% |
(123.95) |
|
|
NET PROFIT |
% |
(123.95) |
|
|
FIXED ASSETS |
% |
(43.29) |
|
|
TOTAL ASSETS |
% |
(14.49) |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
37.37 |
Impressive |
Industrial Average |
12.55 |
|
Net Profit Margin |
(14.02) |
Deteriorated |
Industrial Average |
4.42 |
|
Return on Assets |
(5.50) |
Deteriorated |
Industrial Average |
5.83 |
|
Return on Equity |
(6.22) |
Deteriorated |
Industrial Average |
10.02 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from sales 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 37.37%. When
compared with the industry average, the ratio of the company was higher. This
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 -14.02%.
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 -5.5%.
Return on Equity indicates how profitable a company is by comparing its
net income to its average shareholders' equity, ROE measures how much the
shareholders earned for their investment in the company. When compared with the
industry average, it was lower, the company's figure is -6.22%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY RATIO
|
Current Ratio |
8.44 |
Impressive |
Industrial Average |
1.46 |
|
Quick Ratio |
4.23 |
|
|
|
|
Cash Conversion Cycle |
356.92 |
|
|
|
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 8.44 times in 2010, increase from 4.01 times, then it is generally
considered to have good short-term financial strength. When compared with the
industry average, the ratio of the company was higher, indicated that company
was an efficient operator in a dominant position within its industry.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 4.23 times in 2010,
increase from 2.99 times, although excluding inventory so the company still
have good short-term financial strength.
The Cash Conversion Cycle measures the number of days a company's cash
is tied up in the production and sales process of its operations and the
benefit from payment terms from its creditors. It meant the company could
survive when no cash inflow was received from sale for 357 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.12 |
Impressive |
Industrial Average |
0.41 |
|
Debt to Equity Ratio |
0.13 |
Impressive |
Industrial Average |
0.73 |
|
Times Interest Earned |
- |
|
Industrial Average |
3.49 |
Debt to Equity Ratio a measurement of how much suppliers, lenders,
creditors and obligors have committed to the company versus what the
shareholders have committed. A lower the percentage means that the company is
using less leverage and has a stronger equity position.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.12 less than 0.5, most of the company's
assets are financed through equity.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.01 |
Impressive |
Industrial Average |
1.95 |
|
Total Assets Turnover |
0.39 |
Deteriorated |
Industrial Average |
1.23 |
|
Inventory Conversion Period |
465.64 |
|
|
|
|
Inventory Turnover |
0.78 |
Deteriorated |
Industrial Average |
8.74 |
|
Receivables Conversion Period |
0.85 |
|
|
|
|
Receivables Turnover |
430.67 |
Impressive |
Industrial Average |
7.98 |
|
Payables Conversion Period |
109.57 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.42 |
|
UK Pound |
1 |
Rs.70.95 |
|
Euro |
1 |
Rs.63.63 |
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 |
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 |
|
---- |
NB |
New Business |
---- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.