MIRA
INFORM REPORT
|
Report Date : |
08.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
Prepack Thailand Co., Ltd. |
|
|
|
|
Registered Office : |
838 Charoennakorn Road, Banglumpoolang, Klongsan, Bangkok
10600 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
06.07.1977 |
|
|
|
|
Com. Reg. No.: |
0105520008808 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor and Exporter of Plastic Film and Packaging
Products. |
|
|
|
|
No. of Employees : |
700 |
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 : |
Good |
|
Payment Behaviour : |
Regular |
|
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
PREPACK
THAILAND CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 838
CHAROENNAKORN ROAD,
BANGLUMPOOLANG, KLONGSAN,
BANGKOK 10600,
THAILAND
TELEPHONE : [66] 2437-0240-9,
2438-0567, 081 812-0851
FAX :
[66] 2439-3886-7
E-MAIL
ADDRESS : sales@prepack.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1977
REGISTRATION
NO. : 0105520008808 [Former: 882/2520 ]
TAX
ID NO. : 3101038408
CAPITAL REGISTERED : BHT.
120,000,000
CAPITAL PAID-UP : BHT.
120,000,000
SHAREHOLDER’S PROPORTION : THAI :
99.51%
FOREIGN :
0.49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PARADORN CHULAJATA, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 700
LINES
OF BUSINESS : PLASTIC FILM
& PACKAGING PRODUCTS
MANUFACTURER,
DISTRIBUTOR & EXPORTER
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
July 6, 1977
as a private
limited company under
the name style
PREPACK THAILAND CO.,
LTD., by Chulajata
family and Thai
partners, with the
initial business objective
to produce multilayer
film for pasteurized
milk. Presently, its
production is expanded
to manufacture wide
range of flexible [plastic] packaging
products for foods,
non-foods, chemicals and
other industries both
local and overseas.
It currently employs
approximately 700 staff.
The subject’s registered
address is 838
Charoennakorn Rd., Banglumpoolang, Klongsan,
Bangkok 10600, and
this is the
company’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Danai Chulajata |
|
Thai |
79 |
|
Mrs. Vipa Chulajata |
|
Thai |
78 |
|
Mr. Paradorn Chulajata |
|
Thai |
49 |
|
Mr. Kornnop Chulajata |
|
Thai |
47 |
|
Mrs. Varangkana Chulajata |
|
Thai |
50 |
|
Mr. Piya Chongwattana |
|
Thai |
69 |
|
Ms. Ratchanee Chongwattana |
|
Thai |
80 |
|
Mrs. Nophawan Chongwattana |
|
Thai |
65 |
|
Mrs. Surasa Poon-apirat |
|
Thai |
45 |
|
Mr. Jamorn Chulajata |
|
Thai |
42 |
AUTHORIZED PERSON
Any two of the
above directors can jointly sign
on behalf of the subject
with company’s affixed.
MANAGEMENT
Mr. Paradorn Chulajata
is the Managing
Director.
He is Thai
nationality with the
age of 49 years
old.
Mr. Jamorn Chulajata
is the Plant
Manager.
He is Thai
nationality with the
age of 42 years
old.
Mr. Kornnop Chulajata is
the Sales &
Marketing Manager.
He is Thai
nationality with the
age of 47 years
old.
Mr. Piya Sawadee
is the Quality
Control Manager.
He is Thai nationality.
BUSINESS OPERATIONS
The subject is engaged in manufacturing wide range
of flexible [plastic] packaging
products as follows:
- Multilayer [Laminated
Film], consists of
2-side-seal bag, 3-side-seal bag,
3-side-seal bag with
zip lock, 4-side-seal bag,
center-seal bag, center-seal bag
with gusset, reinforced bag,
roll film I, roll
film II, standing I [with zip
lock], and standing II.
- LLDPE [Co-Extruded
Film], consists of
bottom-seal bag, courier
bag, loop handle
bag, roll film I,
roll film II, side-seal bag,
slit-seal bag, and
wicket bag
The products are
supplied to various
industries as follows:
- Food: ready meal,
frozen food, rice,
coffee & tea, diary, coconut
milk, bread and
pet food.
- Non-food: diaper, napkins,
tissue, sanitary, detergent, soap
and others
- Chemicals & others:
resin bags and
courier bag.
PRODUCTION
600 metric tons
per month.
BRAND NAMES
“HUGGIES”, “GREAT AMERICA”
PURCHASE
80% of the
raw materials such
as plastic resin [LLDPE, LDPE],
pigment, reducer, laminate
adhesives and other
chemicals are purchased
from local suppliers,
and the remaining
20% as well
as machinery and
spare parts are
imported from United
States of America,
Germany, Republic of
China, Taiwan and
France.
MAJOR SUPPLIERS
Thai Polymer Co.,
Ltd. :
Thailand
Polymer Marketing Co., Ltd.
:
Thailand
Rickerman [Thailand] Co.,
Ltd. : Thailand
Dow Chemical [Thailand] Co., Ltd. : Thailand
T P I Polene Public
Co., Ltd. : Thailand
SCG Plastic Co.,
Ltd. : Thailand
SALES
80% of the
products is sold
locally by wholesale
to dealers, and the
remaining 20% is
exported to Singapore,
Australia, Vietnam, Malaysia,
Hong Kong, Taiwan,
U.S.A., and Europe.
MAJOR CUSTOMER
NC Coconut Co.,
Ltd. : Thailand
SUBSIDIARY AND AFFILIATED
COMPANY
The subject is
not found to
have any subsidiary
or 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
L/C at sight
or T/T.
BUSINESS TRANSACTION
The products are
sold to customers
both by cash
and credit with
the maximum credit
given at 60
days. The subject is
found to have delay
payment by some
customers, but they
can negotiate.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok 10500]
Kasikornbank Public Co.,
Ltd.
[Head Office
: 1 Kasikorn
Lane, Rajburana Rd.,
Rajburana, Bangkok 10140]
EMPLOYMENT
The subject employs
approximately 700 office staff
and factory workers.
LOCATION DETAILS
The premise is owned
for administrative office
at the heading address. Premise is
located in commercial/residential area.
Factory
and Warehouse:
Factory
I : 1/1
Moo 4, T.
Bangchang, A. Ampawa,
Samutsongkram 75110.
Tel. : [66]
34 751-186-7, Fax
: [66] 34 752-001.
Factory
II : 137/3 Moo 1, T.
Makamkoo, A. Nikompattana, Rayong
21180.
COMMENT
Strong growth in food, consumer goods and
industrial products has prompted with high demand of packaging
including vacuum packaging
and plastic films. The subject is the leading manufacture
of plastic film for food
processing. With more
than 30 years experience,
its products have been
diversified into various
markets such as
agricultural products,
frozen foods and
chemical products.
Subject is doing good business
and expanding steadily.
FINANCIAL INFORMATION
The capital was
registered at Bht.
1,000,000 divided into
10,000 shares of
Bht. 100 each.
The capital was
increased later as
followings:
Bht. 40,000,000
on September 27,
1999
Bht. 65,000,000
on March 6,
2002
Bht.
110,000,000 on March
30, 2004
Bht.
120,000,000 on October
26, 2004
The latest registered
capital was increased to
Bht. 120,000,000 divided
into 1,200,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30,
2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Vipa Chulajata Nationality: Thai Address : 844
Charoennakorn Rd., Banglumpoolang, Klongsan, Bangkok
10600 |
276,375 |
23.03 |
|
Mr. Danai Chulajata Nationality: Thai Address : 844
Charoennakorn Rd., Banglumpoolang,
Klongsan, Bangkok 10600 |
250,000 |
20.83 |
|
Mr. Paradorn Chulajata Nationality: Thai Address : 11/1
Sukhumvit 68 Rd.,
Bangna,
Prakanong, Bangkok |
132,300 |
11.03 |
|
Mrs. Surasa Poon-apirat Nationality: Thai Address : 844
Charoennakorn Rd., Banglumpoolang, Klongsan,
Bangkok 10600 |
103,860 |
8.66 |
|
Mr. Kornnop Chulajata Nationality: Thai Address : 844
Charoennakorn Rd., Banglumpoolang,
Klongsan, Bangkok 10600 |
102,105 |
8.51 |
|
Mr. Jamorn Chulajata Nationality: Thai Address : 63/4
Ngamwongwan Rd., Muang,
Nonthaburi 11000 |
101,595 |
8.46 |
|
Ms. Ratchanee Chongwattana Nationality: Thai Address : 848
Charoennakorn Rd., Banglumpoolang,
Klongsan, Bangkok 10600 |
100,000 |
8.33 |
|
Mr. Piya Chongwattana Nationality: Thai Address : 48
Suanluang, Bangkok 10250 |
59,400 |
4.95 |
|
Others |
74,365 |
6.20 |
Total Shareholders : 28
Share Structure [as
at April 30, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
23 |
1,194,175 |
99.51 |
|
Foreign |
5 |
5,825 |
0.49 |
|
Total |
28 |
1,200,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Chanida Suwanjutha No.
1495
BALANCE SHEET
The
latest financial figures
published for December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash in hand
& at Bank
|
3,637,598.75 |
4,566,739.12 |
4,413,840.22 |
|
Trade Account &
Other Receivable |
302,506,690.12 |
245,367,240.75 |
230,990,959.30 |
|
Inventories |
182,436,331.92 |
162,557,150.86 |
124,717,624.18 |
|
Other Current Assets
|
10,633,138.20 |
18,091,432.75 |
43,039,847.25 |
|
|
|
|
|
|
Total Current Assets
|
499,213,758.99 |
430,582,563.48 |
403,162,270.95 |
|
Fixed Assets |
452,373,423.71 |
477,506,217.98 |
485,530,030.66 |
|
Machinery & Equipment
under Financial Lease Agreement |
46,642,740.08 |
40,498,654.27 |
42,897,400.49 |
|
Long-term Investment |
142,450.00 |
142,450.00 |
142,450.00 |
|
Other Assets |
53,331,445.35 |
41,985,322.34 |
18,756,570.38 |
|
Total Assets |
1,051,703,818.13 |
990,715,208.07 |
950,488,722.48 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
306,531,948.39 |
249,380,055.13 |
224,939,117.69 |
|
Current Portion of
Long-term Liabilities |
26,493,003.95 |
56,995,328.42 |
47,845,101.34 |
|
Current Portion of Finance Lease Contract Liabilities |
8,805,452.41 |
5,417,091.79 |
5,813,347.60 |
|
Trade Account & Other Payable |
218,639,254.34 |
211,827,742.87 |
165,972,900.90 |
|
Accrued Income Tax |
13,977,907.97 |
9,820,772.76 |
- |
|
Other Current Liabilities |
3,401,434.24 |
2,700,488.82 |
44,313,927.69 |
|
|
|
|
|
|
Total Current Liabilities |
577,849,001.30 |
536,141,479.79 |
488,884,395.22 |
|
Long-term Loan |
158,398,888.46 |
191,884,804.00 |
239,661,882.42 |
|
Finance Lease Contract
Liabilities |
12,432,978.98 |
7,636,114.53 |
8,646,140.30 |
|
Obligation from Employee
Benefits |
28,893,247.00 |
- |
- |
|
Total Liabilities |
777,574,115.74 |
735,662,398.32 |
737,192,417.94 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,200,000 shares
|
120,000,000.00 |
120,000,000.00 |
120,000,000.00 |
|
|
|
|
|
|
Capital Paid |
120,000,000.00 |
120,000,000.00 |
120,000,000.00 |
|
Retained Earning Appropriated for
Statutory Reserve |
9,544,139.00 |
6,848,435.00 |
4,395,159.00 |
|
Unappropriated [Deficit] |
134,521,563.39 |
118,140,374.75 |
78,837,145.54 |
|
Other Components of Shareholders’ Equity - Unrealized Profit |
10,064,000.00 |
10,064,000.00 |
10,064,000.00 |
|
Total Shareholders' Equity |
274,129,702.39 |
255,052,809.75 |
213,296,304.54 |
|
Total Liabilities & Shareholders' Equity |
1,051,703,818.13 |
990,715,208.07 |
950,488,722.48 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales & Service
Income |
1,619,261,818.98 |
1,387,154,254.86 |
1,184,632,939.62 |
|
Other Income |
1,291,144.47 |
4,741,819.73 |
2,925,219.23 |
|
Total Revenues |
1,620,552,963.45 |
1,391,896,074.59 |
1,187,558,158.85 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,393,865,327.25 |
1,188,663,327.01 |
970,710,399.58 |
|
Selling Expenses |
40,302,736.45 |
35,093,790.02 |
31,850,087.78 |
|
Administrative Expenses |
74,961,919.07 |
63,436,335.23 |
64,424,886.64 |
|
Total Expenses |
1,509,129,982.77 |
1,287,193,452.26 |
1,066,985,374.00 |
|
|
|
|
|
|
Profit/[Loss] Financial Cost
& Income Tax |
111,422,980.68 |
104,702,622.33 |
120,572,784.85 |
|
Financial Cost |
[33,793,964.65] |
[30,044,828.92] |
[26,234,310.30] |
|
Income Tax |
[28,019,470.39] |
[24,542,063.20] |
[29,898,845.50] |
|
Net Profit / [Loss] |
49,609,545.64 |
50,115,730.21 |
64,439,629.05 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.86 |
0.80 |
0.82 |
|
QUICK RATIO |
TIMES |
0.53 |
0.47 |
0.48 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.58 |
2.90 |
2.44 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.54 |
1.40 |
1.25 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
47.77 |
49.92 |
46.90 |
|
INVENTORY TURNOVER |
TIMES |
7.64 |
7.31 |
7.78 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
68.19 |
64.56 |
71.17 |
|
RECEIVABLES TURNOVER |
TIMES |
5.35 |
5.65 |
5.13 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
57.25 |
65.05 |
62.41 |
|
CASH CONVERSION CYCLE |
DAYS |
58.71 |
49.43 |
55.66 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
86.08 |
85.69 |
81.94 |
|
SELLING & ADMINISTRATION |
% |
7.12 |
7.10 |
8.13 |
|
INTEREST |
% |
2.09 |
2.17 |
2.21 |
|
GROSS PROFIT MARGIN |
% |
14.00 |
14.65 |
18.31 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
6.88 |
7.55 |
10.18 |
|
NET PROFIT MARGIN |
% |
3.06 |
3.61 |
5.44 |
|
RETURN ON EQUITY |
% |
18.10 |
19.65 |
30.21 |
|
RETURN ON ASSET |
% |
4.72 |
5.06 |
6.78 |
|
EARNING PER SHARE |
BAHT |
41.34 |
41.76 |
53.70 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.74 |
0.74 |
0.78 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.84 |
2.88 |
3.46 |
|
TIME INTEREST EARNED |
TIMES |
3.30 |
3.48 |
4.60 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
16.73 |
17.10 |
|
|
OPERATING PROFIT |
% |
6.42 |
(13.16) |
|
|
NET PROFIT |
% |
(1.01) |
(22.23) |
|
|
FIXED ASSETS |
% |
(5.26) |
(1.65) |
|
|
TOTAL ASSETS |
% |
6.16 |
4.23 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 16.73%. Turnover has increased from THB
1,387,154,254.86 in 2010 to THB 1,619,261,818.98 in 2011. While net profit has
decreased from THB 50,115,730.21 in 2010 to THB 49,609,545.64 in 2011. And
total assets has increased from THB 990,715,208.07 in 2010 to THB
1,051,703,818.13 in 2011.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
14.00 |
Satisfactory |
Industrial
Average |
14.47 |
|
Net Profit Margin |
3.06 |
Impressive |
Industrial
Average |
2.07 |
|
Return on Assets |
4.72 |
Impressive |
Industrial
Average |
2.75 |
|
Return on Equity |
18.10 |
Impressive |
Industrial
Average |
6.20 |
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%. 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 3.06%,
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
4.72%, 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 18.1%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profits 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 : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.86 |
Risky |
Industrial
Average |
1.26 |
|
Quick Ratio |
0.53 |
|
|
|
|
Cash Conversion Cycle |
58.71 |
|
|
|
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 0.86 times in 2011, increased from 0.8 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 0.53 times in 2011,
increased from 0.47 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 59 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.74 |
Acceptable |
Industrial
Average |
0.56 |
|
Debt to Equity Ratio |
2.84 |
Risky |
Industrial
Average |
1.26 |
|
Times Interest Earned |
3.30 |
Impressive |
Industrial
Average |
2.85 |
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 3.3 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 0.74 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 Uptrend
ACTIVITY : EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.58 |
Impressive |
Industrial
Average |
2.61 |
|
Total Assets Turnover |
1.54 |
Impressive |
Industrial
Average |
1.28 |
|
Inventory Conversion Period |
47.77 |
|
|
|
|
Inventory Turnover |
7.64 |
Impressive |
Industrial
Average |
6.32 |
|
Receivables Conversion Period |
68.19 |
|
|
|
|
Receivables Turnover |
5.35 |
Impressive |
Industrial
Average |
4.79 |
|
Payables Conversion Period |
57.25 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.35 and 5.65 in
2011 and 2010 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 2011
decreased from 2010. This would suggest the company had deteriorated 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 50 days at the
end of 2010 to 48 days at the end of 2011. This represents a positive trend.
And Inventory turnover has increased from 7.31 times in year 2010 to 7.64 times
in year 2011.
The company's Total Asset Turnover is calculated as 1.54 times and 1.4
times in 2011 and 2010 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 Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.14 |
|
|
1 |
Rs.83.27 |
|
Euro |
1 |
Rs.71.94 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIT |
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.