MIRA INFORM REPORT
|
Report Date : |
08.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
THAI CARBON BLACK PUBLIC COMPANY LIMITED |
|
|
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Registered Office : |
12th Floor, Mahatun Plaza Building, 888/122, 888/128 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 |
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|
Country : |
Thailand |
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|
|
|
Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
29.02.1978 |
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|
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Com. Reg. No.: |
0107537001251 |
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|
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|
|
Legal Form : |
Public Limited Company |
|
|
|
|
|
|
Line of Business : |
Manufacturer, Distributor and Exporter of Carbon Black |
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|
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|
No. of Employees : |
308 |
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 : |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
THAILAND - ECONOMIC OVERVIEW
With a well-developed
infrastructure, a free-enterprise economy, generally pro-investment policies,
and strong export industries, Thailand enjoyed solid growth from 2000 to 2007 -
averaging more than 4% per year - as it recovered from the Asian financial
crisis of 1997-98. Thai exports - mostly machinery and electronic components,
agricultural commodities, and jewelry - continue to drive the economy,
accounting for more than half of GDP. The global financial crisis of 2008-09 severely
cut Thailand's exports, with most sectors experiencing double-digit drops. In
2009, the economy contracted 2.3%. In 2010, Thailand's economy expanded 7.8%,
its fastest pace since 1995, as exports rebounded from their depressed 2009
level. Steady economic growth at just below 4% during the first three quarters
of 2011 was interrupted by historic flooding in October and November in the
industrial areas north of Bangkok, crippling the manufacturing sector and
leading to a revised growth rate of only 0.1% for the year. The industrial
sector is poised to recover from the second quarter of 2012 onward, however,
and the government anticipates the economy will probably grow between 5.5 and
6.5% for 2012, while private sector forecasts range between 3.8% and 5.7%.
Source : CIA
Company name
THAI
CARBON BLACK PUBLIC
COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 12th FLOOR,
MAHATUN PLAZA BUILDING,
888/122, 888/128
PLOENCHIT ROAD, LUMPINI,
PATHUMWAN, BANGKOK
10330, THAILAND
TELEPHONE : [66]
2253-6745-54
FAX :
[66] 2254-9031,
2253-2812
E-MAIL
ADDRESS : jaiprakash.shahal@adityabirla.com
rajesh.k.jha@adityabirla.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1978
REGISTRATION
NO. : 0107537001251 [Former
: BOR.MOR.JOR.372]
TAX
ID NO. : 3101143348
CAPITAL
REGISTERED : BHT.
300,000,000
CAPITAL
PAID-UP : BHT.
300,000,000
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
SANJEEV SOOD, INDIAN
PRESIDENT
NO.
OF STAFF : 308
LINES
OF BUSINESS : CARBON
BLACK
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
FOR NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT
WITH GOOD PERFORMANCE
HISTORY
The subject was
established on February
29, 1978 as a
private limited company under the
registered name “Thai
Carbon Black Co.,
Ltd.”, by a
joint-venture between Indian
and Thai investors,
in order to
manufacture carbon black
to both local
and overseas market
with BOI promotion.
It is one
of the largest
producers of carbon
black in the
world.
It has started commercial production in 1980 under technical license
from Philips Petroleum
Company Limited, U.S.A. The subject
is not only
the first carbon
black manufacturer and
distributor in Thailand
but also the
first company in
the country which
achieved three certificates:
ISO: 9002, ISO:14001, ISO/TS 16949
and QS:9000.
The subject was
listed on the
Stock Exchange of Thailand
on August 24,
1990, and was registered
as a public limited
company under the
name THAI CARBON
BLACK PUBLIC COMPANY
LIMITED on April
28, 1994. Subject
currently employs 308 staff.
The subject was
granted several Awards
for Excellence as
follows:
1984 - Best
Welfare & Management
Company in Thailand
[By the Prime
Minister]
1988 - Best
Petrochemical Industry in
Thailand [By the
Minister of Industry]
1994 - Best
Quality Award [By
the Minister of
Commerce]
- ISO
9002 Certification [By
BVQI, Thailand]
- Outstanding
Company in Thailand
[By the Prime
Minister]
1996 - Best
Welfare & Management
Company in Thailand [By
the Minister of
Labour]
1997 - ISO
14001 Certification [By
BVQI, UK]
1999 - QS
9000 [By BVQI,
USA]
The subject’s registered
address is 12th
Floor, Mahatun Plaza
Building, 888/122, 888/128
Ploenchit Rd., Lumpini,
Pathumwan, Bangkok 10330,
and this is
the company’s current
operation address.
THE BOARD OF
DIRECTORS
|
Name |
Nationality |
Age |
|
|
|
|
|
Mr. Kumar Mangalam
Birla |
Indian |
45 |
|
Mrs. Rajashree Birla |
Indian |
67 |
|
Mr. Sachin Jitendra
Mehta |
Indian |
46 |
|
Dr. Santrupt Mishra |
Indian |
47 |
|
Mr. Arvind K. Newar |
Indian |
67 |
|
Mr. Shyam Sundar
Mahansaria |
Indian |
77 |
|
Mr. Deepak Mittal |
Indian |
68 |
|
Mr. Rajinderpal Singh
Thakralbutra |
Indian |
56 |
|
Mrs. Rachani Kajiji |
Indian |
71 |
|
Mr. Prakit Pradipasen |
Indian |
70 |
|
Mr. G. K. Tulsian |
Indian |
75 |
|
Mr. Sanjeev Sood |
Indian |
- |
AUTHORIZED PERSON
Two of the
above directors can
jointly sign on behalf of
the subject with
the company’s affixed.
MANAGEMENT
Mr. Sanjeev Sood is the
President.
He is Indian
nationality.
Mr. Ajay Rastogi
is the Joint
President - Manufacturing.
He is Indian
nationality.
Mr. Rajiv Gupta
is the Senior
Vice President -
Marketing.
He is Indian
nationality.
Mr. Jaiprakash Shahal
is the Vice
President - Finance &
Commercial.
He is Indian
nationality.
Mr. Latthasit Thongklaew
is the Assistant
VP - [HR & Administration].
He is Thai nationality.
BUSINESS OPERATIONS
The subject is
one of the
largest manufacturers of carbon
black in Asia.
Its manufacturing plant
currently is able
to produce up
to 275,000 metric
tons per year
of furnace grade
carbon black, making
the plant one
of the largest
producers of carbon
black in the
world from a
single location -
Thailand. And from
this location, the
plant supplies carbon
black to all
six continents. There
are three kinds
of carbon black:
channel black, furnace
black and thermal
black. It has
also divided into
2 grades, comprising
hard carbon black
and soft carbon
black.
The Application of
Carbon Black
Carbon black is
employed for many
different applications. It
is an essential
element in paint,
printing ink, batteries,
electric conductors and a broad
range of rubber
products. Carbon black
can be found
in most items
in daily life.
In addition, carbon
black acts as
a reinforcing agent
in the production
of tyres, imparting
abrasion, tear resistance
and important we-grip
properties. Carbon black
consists of extremely
fine particles, which
are produced by
the incomplete thermal
decomposition of aromatic
oils under carefully
controlled conditions. Different
grades of carbon
blacks differ in
their colloidal properties
and tend to
impart varying degrees
of reinforcement to
vulcanisates.
PRODUCTIONS
Full Production Capacity : 275,000 metric
tons per annum
Actual Production Capacity : 241,850 metric
tons per annum
PURCHASE
97% of raw
materials mainly carbon
black feedstock oil
and fuel oil
are imported from
United States of
America and India,
the remaining 3%
is purchased from
local suppliers.
SALES [LOCAL]
51% of the
products is sold
locally to local
manufacturers.
EXPORT [COUNTRIES]
49% of the
products is also
exported to United
States of America,
Europe and Japan.
MAJOR CUSTOMERS
|
Name |
Country |
|
|
|
|
Bridgestone Corporation |
: United States
of America |
|
Michelin Tyre Co.,
Ltd. |
: United States
of America |
|
Goodyear Public Company
Limited |
: United States
of America |
|
Polychem Industries
[Thailand] Ltd. |
: Thailand |
|
Otani Tyre Co.,
Ltd. |
: Thailand |
|
Yokohama Rubber Co., Ltd. |
: Japan |
|
Toyo Tyre Co.,
Ltd. |
: Japan |
|
Vee Rubber International Co.,
Ltd. |
: Thailand |
|
Inoue Rubber [Thailand]
Public Co., Ltd |
: Thailand |
|
Deestone Co., Ltd. |
: Thailand |
|
Pong Para Group |
: Thailand |
|
S.R. Tyres Co.,
Ltd. |
: Thailand |
|
Pan Innovation Co.,
Ltd. |
: Thailand |
|
Elastomix [Thailand] Co.,
Ltd. |
: Thailand |
SALES REVENUE
[unit :
million baht]
|
|
2011 |
2010 |
||
|
|
Amount |
% |
Amount |
% |
|
Local
market |
5,155 |
51 |
5,060 |
56 |
|
Export |
5,001 |
49 |
3,944 |
44 |
|
|
|
|
|
|
|
Total |
10,156 |
100 |
9,004 |
100 |
Local market share
for the year
2011 (approximately in term of
sales volume)
|
Company |
Market share
[%] |
|
|
|
|
Thai Carbon Black
Public Company Limited |
42 |
|
Thai Tokai Carbon
Product Co., Ltd. |
31 |
|
Bridgestone Carbon Black [Thailand] Co.,
Ltd. |
6 |
|
Imports |
21 |
SUBSIDIARY COMPANIES
Liaoning Birla Carbon
Co., Ltd.
Business Type
: Manufacturer of
carbon black in
Republic of China.
Investment :
The subject holds
100% of the
company’s shares.
Birla Carbon Mexico,
S.A.DE C.V.
Business Type
: Manufacturer of
carbon black in
Mexico
Investment :
The subject holds
98% of the
company’s shares.
ASSOCIATED COMPANIES
P.T. Indo Liberty
Textiles
Business Type : Manufacturer
of Synthetic Yarn
Investment : The
subject holds 40.00%
of the company’s
shares.
Aditaya Birla Chemicals
[Thailand] Co., Ltd.
Business Type : Manufacturer
of chemicals
Investment : The
subject holds 29.99%
of the company’s
shares.
Ameri Blend Inc.
Business Type
: Procurement and
store materials.
Investment :
The subject holds
49% of the
company’s shares.
Indigold Carbon [Mauritius]
Business Type
: -
Investment :
The subject holds
20.49% of the
company’s shares.
RELATED COMPANIES
Thai Acrylic Fibre
Co., Ltd.
Investment : The
subject holds 15.98%
of the company’s
shares.
Alexandria Fiber Company
S.A.E. [Egypt]
Investment : The
subject holds 14.40%
of the company’s
shares.
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
L/C at sight
or on the
credit term of
90 days and
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok 10500]
[Ploenchit Branch,
Ploenchit Rd., Lumpini,
Pathumwan, Bangkok]
Siam Commercial Bank
Public Co., Ltd.
[Head Office
: 9 Ratchadapisek
Rd., Jatujak, Bangkok 10900]
Kaskornbank Public Co.,
Ltd.
[Head Office
: 1 Kasikorn
Lane, Ratchaburana Rd.,
Ratchaburana, Bangkok 10140]
[Bangkapi Branch,
Ramkhamhaeng Rd., Huamark,
Bangkapi, Bangkok 10240]
Citibank N.A.
[Bangkok office
: 82 North
Sathorn Rd., Silom,
Bangrak, Bangkok 10500]
Deutsche Bank AG.
[Bangkok office
: 208 Wireless
Rd., Lumpini, Pathumwan,
Bangkok 10330]
HSBC Banking Corp.
[Bangkok office
: 968 Rama
4 Rd., Silom,
Bangrak, Bangkok]
EMPLOYMENT
The subject employs
308 staff. [office,
sales staff and
factory workers]
LOCATION DETAILS
The premise is
rented for operating
administrative office at
the heading address.
It is located
in a prime
commercial area.
The factory is
located at 44
Moo 1 Ayudhya-Angthong Highway,
T. Posa, A.
Muang, Angthong 14000, on the land
area of 86,400
square meters.
Tel.: [66] 35
672-150-4, Fax [66]
35 672-148-9.
COMMENT
Thai Carbon Black
is one of the
largest producers of Carbon
Black in the world.
Its product is well
accepted and established
in the international
market. Presently, company exports approximately
49% of its production
and able to
meet all customer
requirements by developing
new grades as
per customer specifications.
During the year
2011 which has witnessed
the full blown
impact of Tsunami in
Japan followed by the
worst ever flood in
the country, production
volume reduced by
0.2% and Sales volume
decreased by 4.0%.
However, the company
is fully dependent on
Auto industry and
since auto industry
is recovering in the
first quarter of 2012,
TCB will expect to
operate 100% efficiency
and with the
addition of new line
6 in 2010,
it will further
increase sale in
South East Asia
region to maximize
efficiency.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 500,000 divided
into 500 shares at
Bht. 1,000 each.
The capital was
increased later as
follows:
Bht.
90,000,000 in August
1978
Bht.
100,000,000 in June
1984
Bht.
128,000,000 in March
1990
Bht.
160,000,000 in June
1990
Bht.
300,000,000 in June
1994
The latest registered
capital was increased
to Bht. 300,000,000 divided
into 300,000,000 shares of
Bht. 1 each
with fully paid.
MAIN SHAREHOLDERS : [as at
March 15, 2012]
|
NAME |
HOLDING |
% |
|
Thai Rayon Public
Co., Ltd. |
74,937,500 |
24.98 |
|
Everlon International Holdings
Limited |
37,687,500 |
12.56 |
|
Mr. Weerapan Teepsuwan |
29,221,020 |
9.74 |
|
PT. Indo-Bharat Rayon |
13,921,880 |
4.64 |
|
HSBC [Singapore] Nominees Pte. Ltd. |
11,600,000 |
3.87 |
|
Citibank Nominees Singapore
Pte. Ltd. -BK Julius
Baer & Co., Ltd. |
10,500,000 |
3.50 |
|
Hilltop Limited |
10,271,250 |
3.42 |
|
Asseau Company Limited |
10,040,120 |
3.35 |
|
P.T. Indo-Bharat Rayon |
9,375,000 |
3.13 |
|
Grasim Industries Limited |
8,250,000 |
2.75 |
|
Dhevaraya Co., Ltd. |
6,566,250 |
2.19 |
|
Thai Industrial Management
& Trading Co.,
Ltd. |
5,810,380 |
1.94 |
|
Citibank Nominees Singapore
Pte Ltd .-UBS AG Zurich |
4,220,100 |
1.41 |
|
Ganaria International Corp. |
4,000,000 |
1.33 |
|
Others |
63,599,000 |
21.19 |
Total Shareholders :
1,369
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Termphong Opanaphan No. 4501
Ernst & Young Office Limited
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and cash
equivalents |
1,075,440,862 |
1,656,640,773 |
|
Trade accounts & other
receivable |
894,566,012 |
1,649,003,231 |
|
Inventories |
2,931,766,656 |
2,009,492,663 |
|
Other current assets |
26,725,196 |
59,207,644 |
|
|
|
|
|
Total Current Assets
|
4,928,498,726 |
5,374,344,311 |
|
Investment in subsidiary
|
561,106,082 |
560,489,282 |
|
Investment in associated company |
786,981,083 |
723,384,750 |
|
Other long-term investments |
1,846,560,162 |
489,160,162 |
|
Long-term Lending to
related company |
5,536,882,650 |
45,009,450 |
|
Property, plant and
equipment |
2,171,625,227 |
2,401,613,130 |
|
Intangible assets |
4,587,322 |
7,253,469 |
|
Other non-current assets |
16,544,161 |
12,525,438 |
|
Total Assets |
15,852,785,413 |
9,613,779,992 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade account &
other payable |
2,046,868,745 |
1,328,256,372 |
|
Current portion of
long-term loans |
887,600,000 |
- |
|
Accrued income tax |
32,743,589 |
146,975,581 |
|
Other current liabilities
|
54,911,892 |
68,823,591 |
|
|
|
|
|
Total Current Liabilities |
3,022,124,226 |
1,544,055,544 |
|
Long-term loan -
net of current portion |
4,188,304,636 |
- |
|
Provision for long-term
employees benefits |
101,066,286 |
93,839,310 |
|
Total Liabilities |
7,311,495,148 |
1,637,894,854 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
Share capital |
|
|
|
Registered, issued
and fully paid
up |
|
|
|
300,000,000 ordinary shares
of Bht. 1 each |
300,000,000 |
300,000,000 |
|
|
|
|
|
Issued &
Fully Paid 300,000,000 ordinary shares
of Bht. 1 each |
300,000,000 |
300,000,000 |
|
Share Premium |
930,000,000 |
930,000,000 |
|
Retained earnings: |
|
|
|
Appropriated -
statutory reserve |
30,000,000 |
30,000,000 |
|
Unappropriated [Deficit] |
7,281,290,265 |
6,715,885,138 |
|
Total Shareholders' Equity |
8,541,290,265 |
7,975,885,138 |
|
Total Liabilities &
Shareholders' Equity |
15,852,785,413 |
9,613,779,992 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
10,156,292,238 |
9,004,021,801 |
|
Other Income |
|
|
|
Dividend income |
63,910,221 |
63,929,908 |
|
Interest income |
122,592,193 |
17,208,264 |
|
Gains [loss]
on exchange |
48,252,376 |
20,475,485 |
|
Others |
10,487,597 |
12,222,404 |
|
Total Revenues |
10,401,534,625 |
9,117,857,862 |
|
Expenses |
|
|
|
|
|
|
|
Cost of ales
|
8,973,552,893 |
7,340,009,225 |
|
Selling expenses |
230,491,454 |
232,098,809 |
|
Administrative expenses |
215,870,392 |
187,183,070 |
|
Loss from diminution in value
of investment in subsidiary |
- |
151,481,500 |
|
Total Expenses |
9,419,914,739 |
7,910,772,604 |
|
|
|
|
|
Profit / [loss] before financial
cost & income tax |
981,619,886 |
1,207,085,258 |
|
Financial cost |
[110,323,372] |
[667,026] |
|
|
|
|
|
Profit / [loss] before income
tax |
871,297,514 |
1,206,418,232 |
|
Income tax |
[986,546] |
[177,745,941] |
|
Net Profit / [Loss] |
870,310,968 |
1,028,672,291 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.63 |
3.48 |
|
QUICK RATIO |
TIMES |
0.65 |
2.14 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.68 |
3.75 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.64 |
0.94 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
119.25 |
99.93 |
|
INVENTORY TURNOVER |
TIMES |
3.06 |
3.65 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
32.15 |
66.85 |
|
RECEIVABLES TURNOVER |
TIMES |
11.35 |
5.46 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
83.26 |
66.05 |
|
CASH CONVERSION CYCLE |
DAYS |
68.14 |
100.72 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
88.35 |
81.52 |
|
SELLING & ADMINISTRATION |
% |
4.39 |
4.66 |
|
INTEREST |
% |
1.09 |
0.01 |
|
GROSS PROFIT MARGIN |
% |
14.06 |
19.75 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
9.67 |
13.41 |
|
NET PROFIT MARGIN |
% |
8.57 |
11.42 |
|
RETURN ON EQUITY |
% |
10.19 |
12.90 |
|
RETURN ON ASSET |
% |
5.49 |
10.70 |
|
EARNING PER SHARE |
BAHT |
290.10 |
342.89 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.46 |
0.17 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.86 |
0.21 |
|
TIME INTEREST EARNED |
TIMES |
8.90 |
1,809.65 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
12.80 |
|
|
OPERATING PROFIT |
% |
(18.68) |
|
|
NET PROFIT |
% |
(15.39) |
|
|
FIXED ASSETS |
% |
(9.58) |
|
|
TOTAL ASSETS |
% |
64.90 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
14.06 |
Impressive |
Industrial
Average |
13.98 |
|
Net Profit Margin |
8.57 |
Impressive |
Industrial
Average |
4.31 |
|
Return on Assets |
5.49 |
Impressive |
Industrial Average |
4.00 |
|
Return on Equity |
10.19 |
Impressive |
Industrial
Average |
7.52 |
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 14.06%. 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 8.57%, higher
figure when compared with those
of its average competitors in the same industry, indicated that business was an
efficient operator in a dominant
position within its industry.
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 ratio is
5.49%, 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 10.19%, 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 Downtrend
Return on Equity Downtrend
LIQUIDITY RATIO
|
Current Ratio |
1.63 |
Satisfactory |
Industrial
Average |
1.63 |
|
Quick Ratio |
0.65 |
|
|
|
|
Cash Conversion Cycle |
68.14 |
|
|
|
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 1.63 times in 2011, decreased from 3.48 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 0.65 times in 2011,
decreased from 2.14 times, then the company has not enough current assets that
presumably can be quickly converted to cash for pay financial obligations.
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 69 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.46 |
Acceptable |
Industrial
Average |
0.41 |
|
Debt to Equity Ratio |
0.86 |
Impressive |
Industrial
Average |
0.75 |
|
Times Interest Earned |
8.90 |
Impressive |
Industrial
Average |
6.16 |
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.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 8.9 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 0.46 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 Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.68 |
Impressive |
Industrial
Average |
1.65 |
|
Total Assets Turnover |
0.64 |
Acceptable |
Industrial
Average |
0.94 |
|
Inventory Conversion Period |
119.25 |
|
|
|
|
Inventory Turnover |
3.06 |
Acceptable |
Industrial
Average |
5.52 |
|
Receivables Conversion Period |
32.15 |
|
|
|
|
Receivables Turnover |
11.35 |
Impressive |
Industrial
Average |
4.67 |
|
Payables Conversion Period |
83.26 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.51.62 |
|
|
1 |
Rs.83.57 |
|
Euro |
1 |
Rs.67.17 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.