MIRA INFORM REPORT
|
Report Date : |
02.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
BASF [THAI] LIMITED |
|
|
|
|
Registered Office : |
23rd Floor, Emporium
Tower, 622 Sukhumvit
24 Road, Klongton,
Klongtoey, Bangkok 10110, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
13.12.1966 |
|
|
|
|
Com. Reg. No.: |
0105509004737 [Former :
587/2509] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Exporter
& Distributor of
Industrial Chemicals |
|
|
|
|
No. of Employees : |
380 |
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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 achieved steady growth due largely to industrial and agriculture
exports - mostly electronics, agricultural commodities, automobiles and parts,
and processed foods. Thailand is trying to maintain growth by encouraging
domestic consumption and public investment to offset weak exports in 2012.
Unemployment, at less than 1% of the labor force, stands as one of the lowest levels
in the world, which puts upward pressure on wages in some industries. Thailand
also attracts nearly 2.5 million migrant workers from neighboring countries.
The Thai government is implementing a nation-wide 300 baht ($10) per day
minimum wage policy and deploying new tax reforms designed to lower rates on
middle-income earners. The Thai economy has weathered internal and external
economic shocks in recent years. The global economic severely cut Thailand's
exports, with most sectors experiencing double-digit drops. In 2009, the
economy contracted 2.3%. However, in 2010, Thailand's economy expanded 7.8%,
its fastest pace since 1995, as exports rebounded. In late 2011 growth was
interrupted by historic flooding in the industrial areas in Bangkok and its five
surrounding provinces, crippling the manufacturing sector. Industry recovered
from the second quarter of 2012 onward with GDP growth at 5.5% in 2012. The
government has approved flood mitigation projects worth $11.7 billion, which
were started in 2012, to prevent similar economic damage, and an additional $75
billion for infrastructure over the next seven years with a plan to start in
2013.
|
Source
: CIA |
company name
BASF [THAI]
LIMITED
SUMMARY
BUSINESS ADDRESS : 23rd
FLOOR, EMPORIUM TOWER,
622 SUKHUMVIT 24
ROAD, KLONGTON,
KLONGTOEY, BANGKOK 10110,
THAILAND
TELEPHONE : [66] 2664-9222
FAX : [66] 2664-9221,
2664-9267, 2664-9259
E-MAIL ADDRESS : kampanp@basf-thai.co.th
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1966
REGISTRATION NO. : 0105509004737 [Former : 587/2509]
TAX ID NO. : 3101028942
CAPITAL REGISTERED : BHT.
700,000,000
CAPITAL PAID-UP : BHT.
700,000,000
SHAREHOLDER’S PROPORTION : FOREIGN :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
BOONCHAI OPAS-IAM-LIKIT, THAI
MANAGING DIRECTOR
NO. OF STAFF : 380
LINES OF BUSINESS : INDUSTRIAL CHEMICALS
MANUFACTURER, EXPORTER
& DISTRIBUTOR
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH GOOD PERFORMANCE
HISTORY
The subject was
established on December 13,
1966 as a
private limited company
under the registered
name B A S F [THAI] LTD.
by German groups,
in order to
manufacture and distribute
industrial chemicals for
both local and
overseas markets. It is
a wholly owned
subsidiary of BASF
SE, Germany.
On September 4,
1995, the subject’s
name was changed
to BASF [THAI]
LIMITED.
It currently employs
approximately 380 staff.
The subject was granted a promotional privilege from the Board of
Investment for manufacturing of
Sodium Polyacrylate [super
absorbent polymer] from December 15,
2000 to November
6, 2004.
During 2009-2011, the
subject took over
the chemical business
of Ciba Thailand
Limited, Cognis Thai
Ltd., and BASF
Polyurethanes [Thailand] Limited.
The subject’s registered
address was initially
located at 17th Flr.,
Asoke Tower, 219/56-59
Sukhumvit 21 Rd.,
Klongtoeynua, Watana, Bangkok
10110.
On June 6,
2002, the registered
address was relocated
to 23rd Floor,
Emporium Tower, 622 Sukhumvit 24 Rd., Klongton, Klongtoey,
Bangkok 10110, and
this is the
company’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Naree Wongmanee |
|
Thai |
51 |
|
Mr. Boonchai Opas-iam-likit |
|
Thai |
49 |
|
Mr. Dean Trevor Draper |
|
Australian |
45 |
AUTHORIZED PERSON
Any of the
above directors can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Boonchai Opas-iam-likit is
the Managing Director.
He is Thai
nationality with the
age of 49
years old.
Mrs. Naree Wongmanee is
the Director, Corporate
Financial Controlling.
She is Thai
nationality with the
age of 51
years old.
Mr. Chansit Nilchai
is the Sales
& Marketing Manager
[Construction Chemical].
He is Thai
nationality.
Mr. Somsak Ngamsuriyaroj
is the Sales
& Marketing Manager
[General Chemical].
He is Thai
nationality.
Mr. Anupong Tangsa-nga
is the Factory
Manager [Samutprakarn].
He is Thai
nationality.
Mr. Rungchai Hongthong
is the Factory
Manager [Rayong].
He is Thai
nationality.
Mr. Krachang Likitsinsopol is
the Import & Export Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activities
are manufacturer, importer,
exporter and distributor
various kinds of
industrial chemicals, which are divided
into 9 divisions as the
followings:
Crop Protection Division
Chemicals and Catalysts
Division
Construction Chemicals Division
Performance Chemicals Division
Care Chemical Division
Hygiene Products Division
Styrenic and Performance
Polymer Division
Polyurethane Division
Catalyst Division.
The products are
supplied to tanning,
plastic, animal feed,
paper, ceramic, paint,
agriculture, construction industries
and etc.
The products are
Albigen, Basosoft, Condensol,
Cyclanon, Dekol, Fixapret, Helizarin
Binder, Helizarin, Kieralon,
Leophen, Lutibrol, Lusynton,
Palegal, Prestogen, Primasol,
Size CB, Trilon, Amollan,
Astacin, Basozym, Corial,
Decatal, Lepton, Lipoderm,
Luron, Mollescal, Luconyl,
Choline Chloride, Lutavit
Blend, Lutavit Mix
and etc.
MAJOR BRAND
BASF
IMPORT
Most of raw
materials are imported
from Germany, Singapore,
Republic of China, Taiwan,
Malaysia, Japan, Switzerland,
Netherlands, Italy, United States of America
and Korea, and
the remaining is
purchased from local
suppliers.
MAJOR SUPPLIERS
BASF SE : Germany
BASF South East
Asia Pte. Ltd. : Singapore
BASF Agro B.V. : Netherlands
BASF Coating Japan
Ltd. : Japan
SALES
70% of the products is
exported to Germany, Taiwan, Singapore,
United States of
America, Korea, India,
Hong Kong, Malaysia,
Philippines, Republic of China,
Japan and Middle
East countries, the
remaining 30% is
sold locally.
MAJOR CUSTOMERS
BASF SE : Germany
BASF South East
Asia Pte. Ltd. : Singapore
BASF Taiwan Ltd. : Taiwan
Gecons [Thailand] Co.,
Ltd. : Thailand
Grand Midas Limited
Partnership : Thailand
PARENT COMPANY
BASF SE : Germany
RELATED COMPANY
BASF Chemcat [Thailand]
Ltd.
Business Type :
Manufacturing and distributing
of automobile parts
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
Local bills are
paid by cash
or on the
credit terms of
30-60 days.
Sales are by
cash or on
the credit terms
of 30-60 days.
Imports are by
L/C at sight
or on the
credit term of
120 days & T/T.
Exports are against
L/C at sight
& T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok 10500]
[Bangkapi Branch
: 182 Sukhumvit
Rd., Klongtoey, Bangkok
10110]
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
approximately 380 staff.
[office, sales staff
and factory workers]
LOCATION DETAILS
The premise is rented
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Factory I is
located at 307-308
Bangpoo Industrial Estate, T.
Praeksa, A. Muang,
Samutprakarn 10270. Tel. [66]
2324-0517-20 Fax [66]
2324-0517
Factory II is
located at 111/3
Moo 4, Eastern
Seaboard Industrial Estate,
Pruakdaeng, Rayong 21140.
Tel. [66] 38
955-100 Fax [66]
38 955-102
COMMENT
BASF is the world’s leading chemical company with
nearly 385 production sites
worldwide that serve customers and
partners in almost all countries of the world.
Over four decades of BASF’s presence in Thai chemical industry, the name BASF has
been entrusted as reliable quality products that enhance and improve the country’s industrial
sector and quality of
life.
The subject has long been
in the market
because of its reputation on
products quality, marketing
and sales strategy
as well as
well established a strong
fundamental management. However, after
the floods swept through
many industries, causing
damage to thousands
of factories, their
operations have been
totally affected which demand
of chemicals would also
decline.
FINANCIAL INFORMATION
The capital was
registered at Bht. 1,250,000 divided
into 1,250 shares
of Bht. 1,000 each.
The capital was
increased later as
followings:
Bht. 100,000,000 on
March 10, 2000
Bht. 200,000,000 on
February 7, 2001
Bht. 1,000,000,000 on
September 28, 2001
On November 18,
2005, the capital
was decreased to
Bht. 700,000,000 divided into
700,000 shares of
Bht. 1,000 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
[as at
April 23, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
BASF SE Nationality: German Address : 67056 Ludwigshafen, Germany |
699,996 |
100.00 |
|
BASF New Zealand
Ltd. Nationality: New Zealander Address : Auckland,
New Zealand |
1 |
- |
|
BASF Philippines Ltd. Nationality: Filipino Address : 103 Progress Ave., Phase 1 GIZ, Carmelray, 4028
Calubang, Calamba
Laguna, Philippines |
1 |
- |
|
BASF Australia Pty.
Ltd. Nationality: Australian Address : Victoria,
Australia |
1 |
- |
|
BASF South East
Asia Pte. Ltd. Nationality: Singaporean Address : 7 Temasek
Boulevard, #35-01 Suntec Tower One,
Singapore |
1 |
- |
Total Shareholders : 5
Share
Structure [as at
April 23, 2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Foreign |
5 |
700,000 |
100.00 |
|
Thai |
- |
- |
- |
|
Total |
5 |
700,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mr. Santi Pongcharoenphit No.
4623
BALANCE SHEET
The latest financial
figures published for
December 31, 2012,
2011 & 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
(Adjusted) 2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
223,315,318 |
240,093,926 |
168,351,455 |
|
Trade Account Receivable |
3,559,032,705 |
3,163,402,707 |
1,356,030,242 |
|
Other Receivable |
66,731,263 |
37,491,331 |
- |
|
Inventories |
1,488,549,677 |
1,883,048,830 |
835,342,733 |
|
Short-term Investment in Subsidiaries |
- |
- |
119,470,000 |
|
Other Current Assets
|
184,321,469 |
149,284,629 |
26,603,336 |
|
|
|
|
|
|
Total Current Assets
|
5,521,950,432 |
5,473,321,423 |
2,505,797,766 |
|
Investment in Related Co-ventures |
210,000,000 |
210,000,000 |
- |
|
Long-term Investment |
- |
- |
100 |
|
Fixed Assets |
1,614,986,832 |
1,557,499,075 |
464,160,653 |
|
Intangible Assets |
190,482,888 |
192,605,206 |
212,454,579 |
|
Deferred Income Tax |
73,899,690 |
46,519,203 |
69,367,319 |
|
Others Non-current Assets |
16,435,591 |
13,379,585 |
12,774,993 |
|
Total Assets |
7,627,755,433 |
7,493,324,592 |
3,264,555,410 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
(Adjusted) 2010 |
|
|
|
|
|
|
Short-term Loan from Financial Institutions |
100,000,000 |
- |
- |
|
Trade Account Payable |
3,691,034,503 |
3,615,316,188 |
1,920,429,690 |
|
Other Payable |
106,683,659 |
75,058,551 |
- |
|
Reserve for Employee Benefit |
- |
- |
3,514,049 |
|
Payable - Purchase
of Business |
- |
14,394,459 |
- |
|
Short-term Loan from Related
Company |
2,000,000,000 |
- |
|
|
Accrued Income Tax |
84,892,536 |
4,733,133 |
8,026,184 |
|
Accrued Expenses |
272,769,363 |
329,738,099 |
188,163,611 |
|
Other Current Liabilities |
100,636,195 |
125,444,097 |
126,701,182 |
|
|
|
|
|
|
Total Current Liabilities |
6,356,016,256 |
4,164,684,527 |
2,246,834,716 |
|
Long-term Loan from Related
Company |
3,000,000,000 |
5,480,000,000 |
- |
|
Liabilities from Employee
Benefit |
240,368,703 |
201,199,266 |
118,027,824 |
|
Other Non-current Liabilities |
4,057,847 |
- |
- |
|
Total Liabilities |
9,600,442,806 |
9,845,883,793 |
2,364,862,540 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized,
issued and fully
paid share
capital 700,000 shares
|
700,000,000 |
700,000,000 |
700,000,000 |
|
|
|
|
|
|
Capital Paid |
700,000,000 |
700,000,000 |
700,000,000 |
|
Reserve for Business
Expansion |
[3,207,849,149] |
[3,216,422,437] |
- |
|
Retained Earning Appropriated for Statutory Reserve |
70,000,000 |
70,000,000 |
70,000,000 |
|
Unappropriated |
465,161,776 |
93,863,236 |
129,692,870 |
|
Total Shareholders' Equity |
[1,972,687,373] |
[2,352,559,201] |
899,692,870 |
|
Total Liabilities & Shareholders'
Equity |
7,627,755,433 |
7,493,324,592 |
3,264,555,410 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
(Adjusted) 2010 |
|
|
|
|
|
|
Sales Income |
18,523,896,159 |
10,413,419,936 |
6,305,242,967 |
|
Commission Income |
98,875,295 |
165,008,899 |
205,178,865 |
|
Other Income |
213,178,507 |
267,173,702 |
70,055,274 |
|
Total Revenues |
18,835,949,961 |
10,845,602,537 |
6,580,477,106 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
16,522,009,813 |
9,529,023,635 |
5,653,639,664 |
|
Selling Expenses |
1,327,946,419 |
920,596,978 |
663,487,453 |
|
Administrative Expenses |
223,281,884 |
225,259,363 |
118,319,569 |
|
Loss on Exchange Rate |
20,290,974 |
37,686,484 |
- |
|
Total Expenses |
18,093,529,090 |
10,712,566,460 |
6,435,446,686 |
|
|
|
|
|
|
Profit before Finance Cost & Income Tax
|
742,420,871 |
133,036,077 |
145,030,420 |
|
Finance Cost |
[229,426,725] |
[100,489,379] |
[3,350,767] |
|
Profit before Income Tax |
512,994,146 |
32,546,698 |
141,679,653 |
|
Income Tax |
[141,695,606] |
[68,376,332] |
[41,048,273] |
|
Net Profit / [Loss] |
371,298,540 |
[35,829,634] |
100,631,380 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.87 |
1.31 |
1.12 |
|
QUICK RATIO |
TIMES |
0.61 |
0.83 |
0.73 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
11.47 |
6.69 |
13.58 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.43 |
1.39 |
1.93 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
32.88 |
72.13 |
53.93 |
|
INVENTORY TURNOVER |
TIMES |
11.10 |
5.06 |
6.77 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
70.13 |
110.88 |
78.50 |
|
RECEIVABLES TURNOVER |
TIMES |
5.20 |
3.29 |
4.65 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
81.54 |
138.48 |
123.98 |
|
CASH CONVERSION CYCLE |
DAYS |
21.47 |
44.53 |
8.44 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
89.19 |
91.51 |
89.67 |
|
SELLING & ADMINISTRATION |
% |
8.37 |
11.00 |
12.40 |
|
INTEREST |
% |
1.24 |
0.96 |
0.05 |
|
GROSS PROFIT MARGIN |
% |
12.49 |
12.64 |
14.70 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.01 |
1.28 |
2.30 |
|
NET PROFIT MARGIN |
% |
2.00 |
(0.34) |
1.60 |
|
RETURN ON EQUITY |
% |
- |
- |
11.19 |
|
RETURN ON ASSET |
% |
4.87 |
(0.48) |
3.08 |
|
EARNING PER SHARE |
BAHT |
530.43 |
(51.19) |
143.76 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
1.26 |
1.31 |
0.72 |
|
DEBT TO EQUITY RATIO |
TIMES |
(4.87) |
(4.19) |
2.63 |
|
TIME INTEREST EARNED |
TIMES |
3.24 |
1.32 |
43.28 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
77.88 |
65.15 |
|
|
OPERATING PROFIT |
% |
458.06 |
(8.27) |
|
|
NET PROFIT |
% |
1,136.29 |
(135.60) |
|
|
FIXED ASSETS |
% |
3.69 |
235.55 |
|
|
TOTAL ASSETS |
% |
1.79 |
129.54 |
|
ANNUAL GROWTH : EXCELLENT
An annual sales growth is 77.88%. Turnover has increased from THB
10,413,419,936.00 in 2011 to THB 18,523,896,159.00 in 2012. While net profit
has increased from THB -35,829,634.00 in 2011 to THB 371,298,540.00 in 2012.
And total assets has increased from THB 7,493,324,592.00 in 2011 to THB
7,627,755,433.00 in 2012.
PROFITABILITY : ACCEPTABLE
PROFITABILITY RATIO
|
Gross Profit Margin |
12.49 |
Deteriorated |
Industrial Average |
40.70 |
|
Net Profit Margin |
2.00 |
Deteriorated |
Industrial Average |
5.11 |
|
Return on Assets |
4.87 |
Impressive |
Industrial Average |
4.22 |
|
Return on Equity |
- |
|
Industrial Average |
7.30 |
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 12.49%. 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 2%. 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 ratio is 4.87%, 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 Downtrend
LIQUIDITY : ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
0.87 |
Risky |
Industrial Average |
1.72 |
|
Quick Ratio |
0.61 |
|
|
|
|
Cash Conversion Cycle |
21.47 |
|
|
|
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 0.87 times in 2012, decreased from 1.31 times, then the company may
have problems meeting its short-term obligations. 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 0.61 times in 2012,
decreased from 0.83 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 22 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
1.26 |
Risky |
Industrial Average |
0.39 |
|
Debt to Equity Ratio |
(4.87) |
Risky |
Industrial Average |
0.65 |
|
Times Interest Earned |
3.24 |
Impressive |
Industrial Average |
2.13 |
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 3.24 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 1.26 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 Downtrend
ACTIVITY : EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
11.47 |
Impressive |
Industrial Average |
0.38 |
|
Total Assets Turnover |
2.43 |
Impressive |
Industrial Average |
0.82 |
|
Inventory Conversion Period |
32.88 |
|
|
|
|
Inventory Turnover |
11.10 |
Impressive |
Industrial Average |
5.15 |
|
Receivables Conversion Period |
70.13 |
|
|
|
|
Receivables Turnover |
5.20 |
Impressive |
Industrial Average |
2.38 |
|
Payables Conversion Period |
81.54 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.20 and 3.29 in
2012 and 2011 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 2012
increased from 2011. 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 decreased from 72 days at the
end of 2011 to 33 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 5.06 times in year 2011 to 11.1 times
in year 2012.
The company's Total Asset Turnover is calculated as 2.43 times and 1.39
times in 2012 and 2011 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 Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.74 |
|
|
1 |
Rs.92.05 |
|
Euro |
1 |
Rs.80.60 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.