MIRA INFORM REPORT
|
Report Date : |
20.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
TPI POLYOL COMPANY
LIMITED |
|
|
|
|
Formerly Known as: |
TPI POLYOL COMPANY
LIMITED |
|
|
|
|
Registered Office : |
7th Floor, Energy Complex, Tower B, 555/2 Vibhavadi Rangsit Road, Chatuchak, Bangkok 10900 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
24.09.1987 |
|
|
|
|
Com. Reg. No.: |
0105530048659 [Former :
4860/2530] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer Distributor & Exporter of Polyol Product |
|
|
|
|
No. of Employees : |
180 |
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 – 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
IRPC POLYOL COMPANY LIMITED
[FORMER : TPI
POLYOL COMPANY LIMITED]
SUMMARY
BUSINESS ADDRESS : 7th
FLOOR, ENERGY COMPLEX,
TOWER B,
555/2 VIBHAVADI
RANGSIT ROAD,
CHATUCHAK, BANGKOK
10900
TELEPHONE : [66] 2649-7000,
2646-6700
FAX : [66] 2649-7001,
2646-6702
E-MAIL ADDRESS : polyol@irpc.co.th
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1987
REGISTRATION NO. : 0105530048659 [Former : 4860/2530]
TAX ID NO. : 3101491159
CAPITAL REGISTERED : BHT.
300,000,000
CAPITAL PAID-UP : BHT.
300,000,000
SHAREHOLDER’S PROPORTION : THAI 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
TISADEE WATANANGKUL, THAI
CHIEF EXECUTIVE
OFFICER
NO. OF STAFF : 180
LINES OF BUSINESS : POLYOL PRODUCTS
MANUFACTURER DISTRIBUTOR
& EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was
established on September
24, 1987 as a
private limited company under the registered name “ABS Plastic Co., Ltd.” by Thai groups,
a wholly owned
polyurethane business of Thai
Petrochemcial Industry Public
Company Limited. On
May 11, 1992,
the subject’s name was changed
to “TPI Polyol
Company Limited”, and
on February 28,
2007, its name
was finally changed
to IRPC POLYOL
COMPANY LIMITED. It
currently employs approximately
180 staff.
Subject is a
wholly owned subsidiary
of IRPC Public
Company Limited [Former: Thai Petrochemical
Industry Public Company
Limited].
The subject is recognized
as the largest
manufacturer of polyurethane
based raw material
in Thailand, and is also
one of a
few suppliers in
the country.
It also achieved
the international standard
ISO 9001 and ISO 9002
certifications for products
quality system.
The subject’s registered
address was initially
located at 26/56
Chan Tadmai Rd.,
Thungmahamek, Sathorn, Bangkok
10120.
On December 1, 2006, it
was relocated to 30th Flr.,
Lao Peng Nguan
1 Bldg., 333
Vibhavadi Rangsit Rd.,
Chompol, Chatuchak, Bangkok
10900.
On March 31,
2010, it was
moved to 7th Flr., Energy
Complex Tower B, 555/2
Vibhavadi Rangsit Rd.,
Chatuchak, Bangkok 10900,
and is also
the subject’s current
operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Boondej Phuriyakorn |
[x] |
Thai |
57 |
|
Mr. Pranach Kosayanont |
|
Thai |
46 |
|
Mr. Kraisri Phankijnirand |
|
Thai |
48 |
|
Mr. Suwan Srinual |
|
Thai |
45 |
|
Mr. Athikom Terbsiri |
[x] |
Thai |
51 |
|
Mr. Sommai Kowkachaporn |
[x] |
Thai |
67 |
|
Mr. Vichit Nitayanond |
|
Thai |
54 |
|
Mr. Charnsilp Trinuchakorn |
[x] |
Thai |
52 |
|
Mr. Manit Suthaporn |
|
Thai |
59 |
|
Ms. Duangkamol Setthanang |
[x] |
Thai |
53 |
|
Mr. Arthorn Thiensawad |
|
Thai |
69 |
|
Mr. Payom Boonyang |
|
Thai |
46 |
|
Mr. Rathapol Unakanporn |
|
Thai |
50 |
|
Mr. Somkiat Lertritpuwadol |
|
Thai |
50 |
|
Mr. Tisadee Watanangkul |
|
Thai |
56 |
AUTHORIZED PERSON
Any two of
the mentioned directors [x]
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Tisadee Watanangkul
is the Chief Executive Officer.
He is Thai
nationality with the
age of 56
years old.
Mr. Boondej Phuriyakorn
is the General
Manager.
He is Thai
nationality with the
age of 57
years old.
Mr. Boonsong Sophitvutthiwong is
the Plant Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
wide range of
polyol products varying
from Polyetherpolyol, Polyesterpolyol, Prepolymer.
These are used
as raw materials
for the manufacturing
of Polyurethane, which
is used to
adapt into thermal
insulating foam, bedding
and furniture components,
footwear and flexible
packaging production.
Its products include
polyester, polyester polyols,
unsaturated polyester, pre-polymer,
polyurethane systems and
case products coatings,
adhesives, sealants and
elastomer.
The subject is
also engaged in
co-producing of Unsaturated Polyester
Resin.
PRODUCTION CAPACITY
33,000 metric tonnes per
annum of Polyether
and Polyester Polyol,
Prepolymer and System.
MAJOR BRANDS
“RAYPOL”, “RAYCORE”, “RAYELAST”
IMPORT [COUNTRIES]
80% of raw
materials such as
propylene oxide and
related feed stock
chemicals are imported
from Singapore, Korea, United States of America, Japan, India, Republic of China,
Taiwan, Malaysia and
Germany.
MAJOR SUPPLIERS
|
ARCO |
: United States of
America |
|
BASF |
: Germany |
|
IRPC Public Company
Limited |
: Thailand |
LOCAL SALES
80% of its
products is sold
locally to manufacturers, wholesalers
and end-users.
EXPORT [COUNTRIES]
20% of the
products is exported
to Malaysia, Taiwan,
Indonesia, Australia, Singapore,
Vietnam, Republic of
China, India, Argentina,
Hong Kong, Philippines,
United Arab Emirates
and Middle East
countries.
MAJOR CUSTOMERS
|
Vianova Resins Ltd. |
: Thailand |
|
Summit Footwear Co.,
Ltd. |
: Thailand |
|
Pan Asia Footwear Public Co., Ltd. |
: Thailand |
|
Editorial Mediterraneo Argentina
S.r.L. |
: Argentina |
PARENT COMPANY
IRPC Public Company
Limited
[Former : Thai Petrochemical Industry
Public Company Limited]
Business Type: Manufacturer
of Petrochemicals
LITIGATION
On December 15, 2000, the
Central Bankruptcy Court
has ordered the
company in accordance
with a decided
court case no.
534/2543 to rehabilitate
its organization and
has initially appointed
Effective Planers Co., Ltd. as
the plan administer.
On May 13,
2003, the Central
Bankruptcy Court has
ordered Effective Planers Co.,
Ltd., to retire
from the plan
administration then it has appointed
The Ministry of
Finance as the
new plan administer
on July 28,
2003.
The Company’s previous
management has filed
litigation to the
Central Bankruptcy Court to
dismiss the Resolutions
of the Extraordinary
General Meeting of
Shareholders for the year
2006 and 2009 of
IRPC Polyol Company Limited and
claimed for the damage amount at Bht. 80 million from the Company's board of
directors.
In July 2011, the Central Bankruptcy Court has decided to dismiss the
Resolutions of the Extraordinary General Meeting of Shareholders of both years.
In October 2011, the Company has filed the petition to the Supreme
Court, and begged for the ease of the execution in November 2011.
Later the Office of the Business Development Department has issued the
letter dated February 7, 2012 informing
about the petition result to the Company's board of directors.
The result is to dismiss the
Company's petition and an order to revoke the registration of the change of the
directors and Company's power, by
merging the list of the Company’s previous management with the directors representing the Company’s major shareholders. But most power shall be vested in the Company’s previous management effectively on
February 7, 2012 onwards.
However, such change is not in accordance with the resolution of the
company's shareholders meeting, and it is under
the process for
the approval of
the next general shareholder
meeting.
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 on the
credit term of
120 days or
T/T.
Exports are against
L/C at sight
or T/T.
BUSINESS TRANSACTION
Most of the
products are sold
by credit, with the maximum credit given at 60 days.
The subject is
not found to
have problem on its account
receivable.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office :
333 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
EMPLOYMENT
The subject employs
approximately 180 office
staff and factory
workers.
LOCATION DETAILS
The premise is
rented for administrative office on
the 7th floor
in a multi-storey
building at the
heading address. It
is located in
commercial/residential area.
Factory is located
at 299 Moo 5, Sukhumvit Rd.,
T. Choengnone, A. Muang,
Rayong 21000 Tel:
[66] 38 942-488-9,
Fax: [66] 38
613-988.
COMMENT
The company is
the manufacturer a
wide range of
polyol products used
as raw materials in
the production of
thermal insulation, bedding
and furniture, footwear and
flexible packaging. It
recognized as the
largest manufacturer of
polyurethane based raw
material in Thailand.
Its business has
grown successfully over
the past several
years, generating a
revenue of more than one
billion baht. It
continues to enjoy
a strong domestic market position, while exporting
its main products
to the Asia-Pacific
region.
Its sale has been driven by the
growth of industrial sector both domestic
and exports.
FINANCIAL INFORMATION
The capital was
registered at Bht.
100,000 divided into
1,000 shares of Bht.
100 each.
The capital was
increased later as followings:
Bht. 72,600,000
on November 17, 1987
Bht. 150,000,000
on February 15,
1990
Bht. 177,000,000
on August 10,
1995
Bht. 300,000,000
on February 10,
1997
The latest registered
capital was increased
to Bht. 300,000,000 divided into
3,000,000 shares of
Bht. 100 each with
fully paid.
MAIN SHAREHOLDERS
[as at
March 29, 2013]
|
NAME |
HOLDING |
% |
|
IRPC Public Company
Limited Nationality: Thai Address : 299 Moo 5, Sukhumvit
Rd.,
Choengnone, Muang, Rayong |
2,999,977 |
100.00 |
|
Other shareholders |
23 |
- |
Total Shareholders : 24
Share Structure
[as at March
29, 2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
24 |
3,000,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
24 |
3,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Vichien Kingmontree No.
3977
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2012,
2011 & 2010
were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Cash and Cash Equivalents |
61,525,784 |
148,035,571 |
120,266,315 |
|
Trade Account &
Other Receivable |
137,770,469 |
151,429,576 |
186,113,899 |
|
Short-term Lending to Related Company |
- |
- |
1,986,458 |
|
Inventories |
240,493,982 |
237,855,949 |
205,480,354 |
|
Other Current Assets
|
6,172,995 |
4,951,902 |
13,151,634 |
|
Total Current Assets
|
445,963,230 |
542,272,998 |
526,998,660 |
|
Long-term Lending to Related Company
|
484,237 |
484,237 |
484,237 |
|
Fixed Assets |
199,001,290 |
207,904,028 |
216,139,441 |
|
Other Non-current Assets |
194,493 |
194,493 |
303,167 |
|
Total Assets |
645,643,250 |
750,855,756 |
743,925,505 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Short-term Loan from
Financial Institution |
30,777,500 |
123,803,059 |
- |
|
Trade Account &
Other Payable |
36,979,694 |
33,316,708 |
131,609,951 |
|
Accrued Income Tax |
- |
10,362,387 |
3,351,018 |
|
Accrued Bonus |
13,665,463 |
17,904,484 |
20,086,461 |
|
Other Current Liabilities |
7,840,063 |
7,237,128 |
14,889,806 |
|
Total Current Liabilities |
89,262,720 |
192,623,766 |
169,937,236 |
|
Long-term Loan from
Related Company |
- |
- |
20,026,414 |
|
Finance Lease Contract Liabilities |
- |
- |
424,806 |
|
Obligation for Employee
Benefits |
23,739,235 |
22,992,493 |
19,197,122 |
|
Other Liabilities |
77,452 |
77,452 |
77,452 |
|
Total Liabilities |
113,079,407 |
215,693,711 |
209,663,030 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 3,000,000 shares |
300,000,000 |
300,000,000 |
300,000,000 |
|
|
|
|
|
|
Capital Paid |
300,000,000 |
300,000,000 |
300,000,000 |
|
Retained Earning |
|
|
|
|
Appropriated for
Statutory Reserve |
30,000,000 |
30,000,000 |
30,000,000 |
|
Unappropriated |
202,563,843 |
205,162,045 |
204,262,475 |
|
Total Shareholders' Equity |
532,563,843 |
535,162,045 |
534,262,475 |
|
Total Liabilities &
Shareholders' Equity |
645,643,250 |
750,855,756 |
743,925,505 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Sales |
901,752,021 |
1,080,331,274 |
995,598,532 |
|
Other Income |
7,943,564 |
6,902,726 |
9,004,281 |
|
Gain on Exchange Rate |
12,227,412 |
7,020,617 |
- |
|
Total Revenues |
921,922,997 |
1,094,254,617 |
1,004,602,813 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
824,469,090 |
950,700,773 |
920,372,511 |
|
Selling Expenses |
22,770,666 |
22,144,886 |
24,683,899 |
|
Administrative Expenses |
39,299,672 |
31,949,426 |
26,932,520 |
|
Total Expenses |
886,539,428 |
1,004,795,085 |
971,988,930 |
|
Profit before Financial
Cost |
35,383,569 |
89,459,532 |
32,613,883 |
|
Financial Cost |
[760,375] |
[728,388] |
[485,953] |
|
Profit before Income Tax |
34,623,194 |
88,731,144 |
32,127,930 |
|
Income Tax |
[7,221,396] |
[27,831,574] |
[10,318,766] |
|
Net Profit |
27,401,798 |
60,899,570 |
21,809,164 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
5.00 |
2.82 |
3.10 |
|
QUICK RATIO |
TIMES |
2.23 |
1.55 |
1.81 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.53 |
5.20 |
4.61 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.40 |
1.44 |
1.34 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
106.47 |
91.32 |
81.49 |
|
INVENTORY TURNOVER |
TIMES |
3.43 |
4.00 |
4.48 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
55.77 |
51.16 |
68.23 |
|
RECEIVABLES TURNOVER |
TIMES |
6.55 |
7.13 |
5.35 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
16.37 |
12.79 |
52.19 |
|
CASH CONVERSION CYCLE |
DAYS |
145.86 |
129.69 |
97.53 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.43 |
88.00 |
92.44 |
|
SELLING & ADMINISTRATION |
% |
6.88 |
5.01 |
5.18 |
|
INTEREST |
% |
0.08 |
0.07 |
0.05 |
|
GROSS PROFIT MARGIN |
% |
10.81 |
13.29 |
8.46 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.92 |
8.28 |
3.28 |
|
NET PROFIT MARGIN |
% |
3.04 |
5.64 |
2.19 |
|
RETURN ON EQUITY |
% |
5.15 |
11.38 |
4.08 |
|
RETURN ON ASSET |
% |
4.24 |
8.11 |
2.93 |
|
EARNING PER SHARE |
BAHT |
9.13 |
20.30 |
7.27 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.18 |
0.29 |
0.28 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.21 |
0.40 |
0.39 |
|
TIME INTEREST EARNED |
TIMES |
46.53 |
122.82 |
67.11 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(16.53) |
8.51 |
|
|
OPERATING PROFIT |
% |
(60.45) |
174.30 |
|
|
NET PROFIT |
% |
(55.00) |
179.24 |
|
|
FIXED ASSETS |
% |
(4.28) |
(3.81) |
|
|
TOTAL ASSETS |
% |
(14.01) |
0.93 |
|
ANNUAL GROWTH : RISKY
An annual sales growth is -16.53%. Turnover has decreased from THB
1,080,331,274.00 in 2011 to THB 901,752,021.00 in 2012. While net profit has
decreased from THB 60,899,570.00 in 2011 to THB 27,401,798.00 in 2012. And
total assets has decreased from THB 750,855,756.00 in 2011 to THB
645,643,250.00 in 2012.
PROFITABILITY : ACCEPTABLE
PROFITABILITY RATIO
|
Gross Profit Margin |
10.81 |
Deteriorated |
Industrial Average |
40.70 |
|
Net Profit Margin |
3.04 |
Acceptable |
Industrial Average |
5.11 |
|
Return on Assets |
4.24 |
Impressive |
Industrial Average |
4.22 |
|
Return on Equity |
5.15 |
Acceptable |
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 10.81%. 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 3.04%.
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 4.24%, 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. When compared with the
industry average, it was lower, the company's figure is 5.15%.
Trend of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Downtrend
LIQUIDITY : SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
5.00 |
Impressive |
Industrial Average |
1.72 |
|
Quick Ratio |
2.23 |
|
|
|
|
Cash Conversion Cycle |
145.86 |
|
|
|
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 5 times in 2012, increased from 2.82 times, then it is generally
considered to have good short-term financial strength. When compared with the
industry average, the ratio of the company was higher, indicated that company
was an efficient operator in a dominant position within its industry.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 2.23 times in 2012,
increased from 1.55 times, although excluding inventory so the company still
have good short-term financial strength.
The Cash Conversion Cycle measures the number of days a company's cash
is tied up in the production and sales process of its operations and the
benefit from payment terms from its creditors. It meant the company could
survive when no cash inflow was received from sale for 146 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.18 |
Impressive |
Industrial Average |
0.39 |
|
Debt to Equity Ratio |
0.21 |
Impressive |
Industrial Average |
0.65 |
|
Times Interest Earned |
46.53 |
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 46.54 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 0.18 less than 0.5, most of the company's
assets are financed through equity.
Trend of the average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Downtrend
ACTIVITY : IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.53 |
Impressive |
Industrial Average |
0.38 |
|
Total Assets Turnover |
1.40 |
Impressive |
Industrial Average |
0.82 |
|
Inventory Conversion Period |
106.47 |
|
|
|
|
Inventory Turnover |
3.43 |
Acceptable |
Industrial Average |
5.15 |
|
Receivables Conversion Period |
55.77 |
|
|
|
|
Receivables Turnover |
6.55 |
Impressive |
Industrial Average |
2.38 |
|
Payables Conversion Period |
16.37 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.55 and 7.13 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
decreased from 2011. 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 increased from 91 days at the end of 2011 to 106
days at the end of 2012. This represents a negative trend. And Inventory
turnover has decreased from 4 times in year 2011 to 3.43 times in year 2012.
The company's Total Asset Turnover is calculated as 1.4 times and 1.44
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.59.79 |
|
|
1 |
Rs.91.03 |
|
Euro |
1 |
Rs.78.52 |
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.