MIRA
INFORM REPORT
|
Report Date : |
08.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
T K WAX
COMPANY LIMITED |
|
|
|
|
Formerly Known As : |
THAI KAWAKEN
COMPANY LIMITED |
|
|
|
|
Registered Office : |
12th Floor,
|
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
10.09.1984 |
|
|
|
|
Com. Reg. No.: |
0105527032950 [Former : 3298/2527] |
|
|
|
|
Legal Form : |
Private Limited
Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor
and Exporter of Hydrogenated Castor
Wax |
|
|
|
|
No. of Employees : |
120 |
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 and address
T K WAX
COMPANY LIMITED
[FORMER : THAI KAWAKEN
COMPANY LIMITED]
SUMMARY
BUSINESS ADDRESS : 12th FLOOR,
ORAKARN BUILDING,
26/43 SOI
CHIDLOM, PLOENCHIT ROAD,
LUMPINI,
PATHUMWAN,
BANGKOK 10330,
THAILAND
TELEPHONE : [66] 2254-1490-7
FAX : [66]
2253-8355, 2254-1499
E-MAIL ADDRESS : karn@thaikawaken.com
tcogroup@samart.co.th
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1984
REGISTRATION NO.
: 0105527032950 [Former : 3298/2527]
TAX ID NO. : 3101314977
CAPITAL REGISTERED : BHT. 150,000,000
CAPITAL PAID-UP
: BHT.
150,000,000
SHAREHOLDER’S PROPORTION : THAI : 75.04%
JAPANESE :
24.96%
FISCAL YEAR CLOSING
DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
TAVORN TANTIPONGANANT, THAI
MANAGING DIRECTOR
NO. OF
STAFF : 120
LINES OF
BUSINESS : HYDROGENATED CASTOR
WAX
MANUFACTURER, DISTRIBUTOR
AND 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
September 10, 1984
as a private
limited company under the
originally registered name “Thai Kawaken
Company Limited” by
a joint venture
between Thai and Japanese groups, with the business objective to manufacture Hydrogenated Castor Wax.
It was granted
a promotional privilege
from Board of
Investment. On January
5, 2004, the subject’s
name was changed
to T K WAX
COMPANY LIMITED. It
currently employs approximately
120 staff.
It achieved
the standard ISO 9001 : 2000 certification
from TUV Institution,
Germany in 2003.
The subject’s
registered address was 12th Flr.,
Orakarn Bldg., 26/42
Soi Chidlom, Ploenchit
Rd., Lumpini, Pathumwan,
Bangkok 10330.
On October
1, 2010, the subject’s registered address
number was changed
from “26/42” to
“26/43” by the Government
district office, and
this is also
the subject’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
Nationality |
Age |
|
|
|
|
|
Mr. Tavorn
Tantiponganant |
Thai |
67 |
|
Mr. Prasart
Jiraphatsakul |
Thai |
74 |
|
Mr. Karn
Sitthajarnpong |
Thai |
64 |
|
Mr. Phum
Tantiponganant |
Thai |
26 |
|
Mr.
Archawapol Jabjitjaidol |
Thai |
37 |
|
Mr. Tatsumi Kitagawara |
Japanese |
54 |
|
Mr. Takafumi Miyazaki |
Japanese |
63 |
|
Mr. Hiroshi Masuda |
Japanese |
49 |
|
Mrs.
Nitraporn Jabjitjaidol |
Thai |
37 |
|
Mr. Visarut Tantiponganant |
Thai |
32 |
AUTHORIZED PERSON
Two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Tavorn
Tantiponganant is the Managing
Director.
He is
Thai nationality with
the age of
67 years old.
Mr. Nirandorn
Thubsoongnern is the
Plant Director.
He is
Thai nationality.
Mr. Karn Sitthajarnpong is
the Sales &
Marketing Manager.
He is
Thai nationality with
the age of
64 years old.
BUSINESS OPERATIONS
The subject’s
activities are manufacturer,
distributor and exporter of
various grades of
Hydrogenated Castor Wax,
including Hydrogenated Castor
Oil, 12-Hydroxy- Stearic Acid,
BISAMIDE and 75/25
Blend of HCO-P/Bisamide and
Power products for
use in plastic
and paint industries.
PRODUCTION
Approximately 16,000
tons/year
IMPORT [COUNTRIES]
Raw material
and chemical are
purchased from both
local and overseas
suppliers in Japan,
Singapore, Taiwan, Republic
of China, India
and Pakistan.
MAJOR SUPPLIERS
|
Name |
Country |
Products |
|
Kawaken Fine
Chemicals Co., Ltd. |
Japan |
Glycerine |
|
K. F. Trading
Company Limited |
Japan |
- |
|
Siam Castor
Oil Industries Co., Ltd. |
Thailand |
Castor Oil |
SALES [LOCAL]
40% of
the products is
sold locally by
wholesale to manufacturers
and end-users.
EXPORT [COUNTRY]
60% of
the products is
exported to Japan,
Taiwan, Republic of China,
Vietnam, Singapore, United
State of America,
Italy, Malaysia, Korea,
India, New Zealand,
Australia, Indonesia, Philippines,
Europe, Middle East,
Africa and etc.
SUBSIDIARIES &
AFFILIATED COMPANIES
Siam Castor
Oil Industries Co., Ltd.
Business Type
: Manufacturer of
castor oil
T.S. Chemical
Co., Ltd.
Business Type
: Imports &
distributor of industrial
chemicals
T. J. Pac
Co., Ltd.
Business Type :
Manufacturing of cooking
oil products
Collodium Co.,
Ltd.
Business Type :
Exporter of resin
products
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.
BANKING
Hong Kong
& Shanghai Banking
Corp.
[Bangkok Office
: 968 Rama 4 Rd.,
Silom, Bangrak, Bangkok]
Thanachart Bank
Public Company Limited.
[New Petchburi
Branch, 1101 New Petchburi
Rd., Makkasan, Rajthevee,
Bangkok]
EMPLOYMENT
The subject
employs approximately 120
staff. [office staff
and factory workers]
LOCATION DETAILS
The premise
is rented for
operating office on
450 square meters
of area at
the heading address
in a prime
commercial area.
Factory is
located on 4,800
square meters at
Bangpoo Industrial Estate, 227
Soi 2, Moo 4, T.
Praek-sa, A. Muang,
Samutprakarn 10280,
Thailand.
Tel : [66]
2323-9523-4, 2323-1619-21
Fax: [66]
2323-9524
COMMENT
The subject
is a manufacturer,
distributor and exporter
of various grades
of Hydrogenated Castor
Wax for paint
and plastic industries.
Its operating performance
in 2012 was
satisfactory with an
increase in both
sales revenue and
net profit comparing
to the same period
of the previous
year’s level. The
subject is optimistic for
another year of success
in 2013 from
an increasing in
number of orders
from the beginning
of this year.
FINANCIAL INFORMATION
The capital
was initially registered
at Bht. 25,000,000
divided into 250,000
shares of Bht.
100 each.
The capital
was increased later
as followings:
Bht. 50,000,000
on March 18,
1992
Bht. 65,000,000
on December 23,
1997
Bht.
100,000,000 on February
24, 2000
Bht.
160,000,000 on December
20, 2000
Bht.
200,000,000 on September
10, 2001
Bht.
250,000,000 on September
2, 2002
On March
15, 2013, the
registered capital was
decreased to Bht. 150,000,000 divided
into 2,500,000 shares
of Bht. 60
each with fully
paid.
THE SHAREHOLDERS LISTED
WERE
[as
at June 7,
2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Siam Castor Oil
Industries Co., Ltd. Nationality: Thai Address :
26/42 Ploenchit Rd.,
Lumpini, Pathumwan, Bangkok |
1,476,116 |
59.04 |
|
K. F. Trading
Company Limited Nationality: Japanese Address :
Japan |
624,000 |
24.96 |
|
T J Land
Company Limited Nationality: Thai Address :
26/42 Ploenchit Rd.,
Lumpini, Pathumwan, Bangkok |
250,000 |
10.00 |
|
Mr. Tavorn Tantiponganant Nationality: Thai Address :
327 Charansanitwong 12 Rd.,
Wadthaphra, Bangkokyai, Bangkok |
113,379 |
4.54 |
|
Ms. Krisada
Techasarintr Nationality: Thai Address :
41/9 Rimklong Sakaenok
Rd., Bang-or, Bangkhunthien, Bangkok |
16,000 |
0.64 |
|
Mr. Prasart
Jiraphatsakul Nationality: Thai Address :
11 Soi Seree 17,
Seree Rd., Huamark, Bangkapi, Bangkok |
6,500 |
0.26 |
|
Ms. Thitikarn
Jiraphatsakul Nationality: Thai Address :
11 Soi Seree 17,
Seree Rd., Huamark, Bangkapi, Bangkok |
5,500 |
0.22 |
|
Mr. Piyaphon
Jiraphatsakul Nationality: Thai Address :
11 Soi Seree 17,
Seree Rd., Huamark, Bangkapi, Bangkok |
5,500 |
0.22 |
|
Mr. Karn
Sitthajarnpong Nationality: Thai Address :
38/81 Soi Ngamduplee,
Rama 4 Rd.,
Thungmahamek, Sathorn,
Bangkok |
1,437 |
0.06 |
|
Mr. Padung
Techasarintr Nationality: Thai Address :
41/9 Rimklongbangsakaenok, Bang-or,
Bangkhuntien, Bangkok |
1,131 |
0.04 |
|
Mr. Kangwal Tantiponganant Nationality: Thai Address :
1144-1148 Songwad Rd.,
Chakrawad, Samphantawong, Bangkok |
437 |
0.02 |
Total Shareholders
: 11
Share
Structure [as at
June 7, 2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
10 |
1,876,000 |
75.04 |
|
Foreign –
Japanese |
1 |
624,000 |
24.96 |
|
Total |
11 |
2,500,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mr. Cherdsakul Onmongkol No. 7195
BALANCE SHEET [BAHT]
The
latest financial figures published
as at December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
872,603.51 |
95,692.95 |
88,832.91 |
|
Trade Accounts
and Other Receivable |
62,507,785.94 |
124,725,635.85 |
51,869,758.37 |
|
Trade Accounts
Receivable Related company |
- |
- |
17,490,807.39 |
|
Short-term Loan
|
266,700,000.00 |
17,076,000.00 |
77,849,400.00 |
|
Inventories |
248,743,941.41 |
87,082,756.32 |
76,021,515.71 |
|
Other Current
Assets |
|
|
6,980,423.99 |
|
|
|
|
|
|
Total Current
Assets |
578,824,330.86 |
228,980,085.12 |
230,300,738.37 |
|
Investment in Associated Company |
34,542,500.00 |
20,542,500.00 |
20,542,500.00 |
|
Other Long-term
Investment |
6,058,526.39 |
6,058,526.39 |
6,058,526.39 |
|
Real Estate for Investment |
318,344.71 |
408,515.93 |
- |
|
Fixed Assets |
88,560,400.84 |
93,247,074.46 |
92,180,436.85 |
|
Other Non - current Assets |
40,900.00 |
70,900.00 |
540,188.18 |
|
Total Assets |
708,345,002.80 |
349,307,601.90 |
349,622,389.79 |
LIABILITIES & SHAREHOLDERS’ EQUITY
[BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft
& Short-term Loan From Financial Institutions |
410,332,592.49 |
79,581,113.07 |
101,871,522.48 |
|
Trade Accounts
and Other Payable
|
23,655,769.23 |
19,867,349.71 |
4,517,156.15 |
|
Current Portion
of Financial Lease Contract
Liabilities |
1,206,026.28 |
- |
- |
|
Accrued Income Tax
|
5,783,690.69 |
3,640,359.24 |
8,839,508.71 |
|
Other Current
Liabilities |
- |
- |
6,920,847.46 |
|
|
|
|
|
|
Total Current
Liabilities |
440,978,078.69 |
103,088,822.02 |
122,149,034.80 |
|
Financial
Lease Contract Liabilities |
1,138,316.34 |
- |
- |
|
Employee Benefits
Obligation |
1,448,160.00 |
947,330.00 |
- |
|
Total Liabilities |
443,564,555.03 |
104,036,152.02 |
122,149,034.80 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized,
issued and fully
paid
share capital 2,500,000
shares |
250,000,000.00 |
250,000,000.00 |
250,000,000.00 |
|
|
|
|
|
|
Capital Paid |
250,000,000.00 |
250,000,000.00 |
250,000,000.00 |
|
Retained
Earnings: Appropriated for Statutory Reserve |
5,500,000.00 |
5,500,000.00 |
5,500,000.00 |
|
Unappropriated |
9,280,447.77 |
[9,728,550.12] |
[27,526,645.01] |
|
Total
Shareholders' Equity |
264,780,447.77 |
245,271,449.88 |
227,473,354.99 |
|
Total Liabilities & Shareholders' Equity |
708,345,002.80 |
349,307,601.90 |
349,622,389.79 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
1,036,796,209.20 |
1,233,351,339.36 |
943,566,963.72 |
|
Other Income |
18,027,620.46 |
8,777,595.44 |
16,129,274.87 |
|
Total Revenues |
1,504,823,829.66 |
1,242,128,934.80 |
959,696,238.59 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of
Goods Sold |
946,053,192.27 |
1,158,777,176.96 |
848,094,319.85 |
|
Selling Expenses |
45,002,604.28 |
38,032,806.40 |
36,254,473.08 |
|
Administrative Expenses |
16,884,806.46 |
13,467,672.46 |
26,079,411.13 |
|
Total
Expenses |
1,007,940,603.01 |
1,210,277,655.82 |
910,428,204.06 |
|
|
|
|
|
|
Profit before
Financial Cost &
Income Tax |
46,883,226.65 |
31,851,278.98 |
49,268,034.53 |
|
Financial Costs |
[8,278,271.76] |
[5,903,341.24] |
[4,971,945.27] |
|
Profit before
Income Tax |
38,604,954.89 |
25,947,937.74 |
44,296,089.26 |
|
Income Tax |
[9,095,957.00] |
[8,149,842.85] |
[13,382,749.25] |
|
|
|
|
|
|
Net Profit / [Loss] |
29,508,997.89 |
17,798,094.89 |
30,913,340.01 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.31 |
2.22 |
1.89 |
|
QUICK RATIO |
TIMES |
0.75 |
1.38 |
1.21 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS
TURNOVER |
TIMES |
11.71 |
13.23 |
10.24 |
|
TOTAL ASSETS
TURNOVER |
TIMES |
1.46 |
3.53 |
2.70 |
|
INVENTORY
CONVERSION PERIOD |
DAYS |
95.97 |
27.43 |
32.72 |
|
INVENTORY
TURNOVER |
TIMES |
3.80 |
13.31 |
11.16 |
|
RECEIVABLES
CONVERSION PERIOD |
DAYS |
22.01 |
36.91 |
20.06 |
|
RECEIVABLES
TURNOVER |
TIMES |
16.59 |
9.89 |
18.19 |
|
PAYABLES
CONVERSION PERIOD |
DAYS |
9.13 |
6.26 |
1.94 |
|
CASH CONVERSION
CYCLE |
DAYS |
108.85 |
58.08 |
50.84 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS
SOLD |
% |
91.25 |
93.95 |
89.88 |
|
SELLING &
ADMINISTRATION |
% |
5.97 |
4.18 |
6.61 |
|
INTEREST |
% |
0.80 |
0.48 |
0.53 |
|
GROSS PROFIT
MARGIN |
% |
53.89 |
6.76 |
11.83 |
|
NET PROFIT MARGIN
BEFORE EX. ITEM |
% |
47.92 |
2.58 |
5.22 |
|
NET PROFIT MARGIN |
% |
2.85 |
1.44 |
3.28 |
|
RETURN ON EQUITY |
% |
11.14 |
7.26 |
13.59 |
|
RETURN ON ASSET |
% |
4.17 |
5.10 |
8.84 |
|
EARNING PER SHARE |
BAHT |
11.80 |
7.12 |
12.37 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.63 |
0.30 |
0.35 |
|
DEBT TO EQUITY
RATIO |
TIMES |
1.68 |
0.42 |
0.54 |
|
TIME INTEREST
EARNED |
TIMES |
60.02 |
5.40 |
9.91 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(15.94) |
30.71 |
|
|
OPERATING PROFIT |
% |
1,460.01 |
(35.35) |
|
|
NET PROFIT |
% |
65.80 |
(42.43) |
|
|
FIXED ASSETS |
% |
(5.03) |
1.16 |
|
|
TOTAL ASSETS |
% |
102.79 |
(0.09) |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales
growth is -15.94%. Turnover has decreased from THB 1,233,351,339.36 in 2011 to THB
1,036,796,209.20 in 2012. While net profit has increased from THB 17,798,094.89
in 2011 to THB 29,508,997.89 in 2012. And total assets has increased from THB
349,307,601.90 in 2011 to THB 708,345,002.80 in 2012.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY RATIO
|
Gross Profit
Margin |
53.89 |
Impressive |
Industrial
Average |
40.70 |
|
Net Profit Margin |
2.85 |
Acceptable |
Industrial
Average |
5.11 |
|
Return on Assets |
4.17 |
Satisfactory |
Industrial
Average |
4.22 |
|
Return on Equity |
11.14 |
Impressive |
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.
Gross Profit Margin is 53.89%. When
compared with the industry average, the ratio of the company was higher,
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 2.85%. 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 4.17%.
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 11.14%, 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 : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.31 |
Satisfactory |
Industrial
Average |
1.72 |
|
Quick Ratio |
0.75 |
|
|
|
|
Cash Conversion
Cycle |
108.85 |
|
|
|
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 1.31 times in 2012,
decrease from 2.22 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 0.75 times in 2012, decrease from 1.38 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 109 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.63 |
Acceptable |
Industrial
Average |
0.39 |
|
Debt to Equity
Ratio |
1.68 |
Risky |
Industrial
Average |
0.65 |
|
Times Interest
Earned |
60.02 |
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 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
60.03 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 0.63 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets
Turnover |
11.71 |
Impressive |
Industrial
Average |
0.38 |
|
Total Assets Turnover |
1.46 |
Impressive |
Industrial
Average |
0.82 |
|
Inventory
Conversion Period |
95.97 |
|
|
|
|
Inventory
Turnover |
3.80 |
Acceptable |
Industrial
Average |
5.15 |
|
Receivables
Conversion Period |
22.01 |
|
|
|
|
Receivables
Turnover |
16.59 |
Impressive |
Industrial
Average |
2.38 |
|
Payables
Conversion Period |
9.13 |
|
|
|
The company's
Account Receivable Ratio is calculated as 16.59 and 9.89 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
increased from 27 days at the end of 2011 to 96 days at the end of 2012. This
represents a negative trend. And Inventory turnover has decreased from 13.31
times in year 2011 to 3.8 times in year 2012.
The company's Total
Asset Turnover is calculated as 1.46 times and 3.53 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.60.34 |
|
|
1 |
Rs.90.78 |
|
Euro |
1 |
Rs.77.81 |
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.