MIRA
INFORM REPORT
|
Report Date : |
01.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
THAI-AMBICA
CHEMICALS CO., LTD. |
|
|
|
|
Registered Office : |
8th
Floor, Deewanchan Building, 219/2 Rajawong
Road, Chakrawad, Samphantawong,
Bangkok 10100 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
16.07.1980 |
|
|
|
|
Com. Reg. No.: |
0105523012253 [Former
: 1227/2523] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, exporter and distributor of Printing and dyeing chemicals |
|
|
|
|
No. of Employees : |
220 |
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 : |
Slow |
|
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
THAI-AMBICA CHEMICALS CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 8th FLOOR,
DEEWANCHAN BUILDING,
219/2 RAJAWONG
ROAD,
CHAKRAWAD, SAMPHANTAWONG,
BANGKOK 10100,
THAILAND
TELEPHONE : [66] 2622-7367-73, 2224-6682-3
FAX :
[66] 2622-7374,
2622-7342
E-MAIL
ADDRESS : tacl@loxinfo.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1980
REGISTRATION
NO. : 0105523012253 [Former
: 1227/2523]
TAX
ID NO. : 3101131802
CAPITAL REGISTERED : BHT. 150,000,000
CAPITAL PAID-UP : BHT.
150,000,000
SHAREHOLDER’S PROPORTION : THAI :
98.83%
INDIAN
: 1.17%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SUPHAT SIVASRIAUMPHAI, THAI
PRESIDENT AND
MANAGING DIRECTOR
NO.
OF STAFF : 220
LINES
OF BUSINESS : PRINTING AND
DYEING CHEMICALS
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
WEAK PERFORMANCE
HISTORY
The subject was
established on July
16, 1980 as
a private limited
company under the
name style THAI-AMBICA
CHEMICALS CO., LTD., by
Thai-Indian groups, in order
to manufacture printing
and dyeing chemicals to both local and
overseas markets. The subject
has been granted a promotional
privilege from Board of
Investment [BOI]. It
currently employs approximately
220 staff.
In 1997, the
subject attained the
ISO 9002 and ISO 14001
certification from M/S
KPMG, United States of
America and also
became a member
of ETAD [The Ecological and
Toxicological Association of
Dyes and Organic
Pigment Manufacturers].
The subject’s registered
address is 8th Floor, Deewanchan Building,
219/2 Rajawong Rd.,
Chakrawad, Samphantawong, Bangkok
10100, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Suphat Sivasriaumphai |
|
Thai |
67 |
|
Mr. Ashok Kumar Agarwal |
|
Indian |
64 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Suphat Sivasriaumphai is the
President & Managing
Director.
He is Thai
nationality with the age of
67 years old.
Mr. Ashok Kumar Agarwal
is the Vice
President.
He is Indian
nationality with the
age of 64
years old.
Mr. R.R. Shanbhag
is the Factory
Manager.
He is Indian
nationality.
Mr. Suvir Sivasriaumphai is the Sales
Manager.
He is Thai
nationality
Mr. Shailendra Singh
is the Export
Manager.
He is Indian
nationality.
Mr. Alkesh Shah is
the Plant Manager.
He is Indian
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer,
exporter and distributor
of dyeing and
printing chemicals, such
as dyestuff, pigment,
sulphur blue, sodium
molybdate and etc.
Its products lines
comprise disperse dyes
for polyester, disperse
dyes for acetate,
reactive dyes for
cellulosic, acid dyes
for wool, nylon
and leathers, direct
dyes for cellulosics
and paper, leather
dyes, vat dyes,
liquid disperse and
reactive dyestuff. The
products are supplied
to textile, leather
and optical brightening
agents industries.
PRODUCTION
10,000- 30,000 tones/annum
PURCHASE
60% of raw
materials and chemicals
are imported from
Germany, India, Republic of China,
Taiwan and Japan,
and the remaining
40% is purchased
through local agents.
MAJOR SUPPLIERS
|
Name |
Country |
|
China National Chemical |
: Republic of China |
|
Vivid Export |
: India |
|
Atul Products |
: India |
|
Mivin Oversea |
: India |
|
Chemi Dyestuff Industries
Pvt. Ltd. |
: India |
EXPORT [COUNTRY]
80% of its
products is exported
to Indonesia, Hong
Kong, Republic of
China,
Malaysia, India, Singapore,
South Korea, United
Kingdom, France, Belgium,
United States of
America, Pakistan, Turkey, Argentina,
Iran, Sri Lanka
and etc.
SALES [LOCAL]
20% of its
products is sold
locally to manufacturers
and dealers.
MAJOR CUSTOMERS
|
Name |
Country |
|
Sampran Printing Co.,
Ltd. |
: Thailand |
|
Chokchai Printing Co.,
Ltd. |
: Thailand |
|
Sripaibul Printing Co.,
Ltd. |
: Thailand |
|
Lee Wiwat Printing
Co., Ltd. |
: Thailand |
|
Impa Oversea Co.,
Ltd. |
: United Kingdom |
|
C & K Co., Ltd. |
: Hong Kong |
|
Etc. |
|
SUBSIDIARIES & AFFILIATED
COMPANIES
D.K. Holding Co., Ltd.
Business Type: Holding Company
Thai Filament Textiles
Co., Ltd.
Business Type: Textile Factory
D.K. Textile Co.,
Ltd.
Business Type: Textile Factory
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 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
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
The Siam Commercial
Bank Public Co., Ltd.
[Head Office
: 9 Ratchadapisek
Rd., Ladyao, Jatujak,
Bangkok 10900]
Hongkong & Shanghai
Banking Corp.
[Bangkok Office : 64 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
Indian Overseas Bank
Ltd.
[Bangkok Office : 221
Rajawongse Rd., Samphantawong, Bangkok
10100]
EMPLOYMENT
The subject employs
approximately 220 staff.
[office staff and factory
workers]
LOCATION DETAILS
The premise is owned
for operating office
at the heading address. Premise is
located in commercial/residential area.
Factory are warehouse
are located at 199
Moo 3, K.M. 39, Sukhumvit
Rd., T. Bangpoomai, A. Muang,
Samutprakarn 10280, on the land
area of 32,000
square meters.
Tel : [66] 2323-9754-5 Fax :
[66] 2323-9753.
COMMENT
All the company’s products are
manufactured and monitored with state-of-the-art technology. More than 60 percent of the production is
exported to premium markets, such as
USA, UK, Germany, France,
Canada, Belgium, Japan
and etc.
Industrial
improvement in 2012 resulted to
many industries’ upward
trend. Increased consumption has contributed to
improve subject’s sales
and services.
Meanwhile, current economy and strong consumption
are the key factors of growing
business.
FINANCIAL INFORMATION
The capital was
registered at Bht. 25,000,000 divided
into 25,000 shares
of Bht. 1,000
each.
The capital was
increased later as
followings:
Bht. 50,000,000
on March 6,
1987
Bht. 70,000,000
on April 4,
1988
Bht. 75,000,000
on April 22,
1988
Bht. 120,000,000
on April 5, 2000
Bht. 150,000,000
on August 1,
2000
The latest registered
capital was increased
to Bht. 150,000,000
divided into 150,000
shares of Bht.
1,000 each with
fully paid.
THE SHAREHOLDERS LISTED WERE :
[as at April
30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Shiva Heights Co.,
Ltd. Nationality: Thai Address : 22
Sukhumvit 20 Rd.,
Klongtoey, Bangkok |
80,000 |
53.33 |
|
Shiva Holding Co., Ltd. Nationality: Thai Address : 219/2
Rajawong Rd., Chakrawad,
Samphantawong, Bangkok 10100 |
28,750 |
19.17 |
|
Rambrandt Hotel Corporation
Ltd. Nationality: Thai Address : 19
Sukhumvit 18 Rd.,
Klongtoey, Bangkok |
20,000 |
13.33 |
|
Mr. Suphat Sivasriaumphai Nationality: Thai Address : 157-159
Vanich Rd., Chakrawad,
Samphantawong, Bangkok 10100
|
7,875 |
5.25 |
|
Krisna Holding Co.,
Ltd. Nationality: Thai Address : 219/2
Rajawong Rd., Chakrawad, Samphantawong, Bangkok
10100 |
3,500 |
2.33 |
|
Mr. Kasem Sivasriaumphai Nationality: Thai Address : 109
Sukhumvit 12 Rd., Klongtoey,
Bangkok 10100 |
2,000 |
1.33 |
|
Mr. Gripan Singh
Sajdev Nationality: Indian Address : 109
Sukhumvit 12 Rd., Klongtoey,
Bangkok 10100 |
1,750 |
1.17 |
|
Mr. Prajim Sajdev Nationality: Thai Address : 109
Sukhumvit 12 Rd., Klongtoey,
Bangkok 10100 |
1,750 |
1.17 |
|
Mr. Surej Sajdev Nationality: Thai Address : 109
Sukhumvit 12 Rd., Klongtoey,
Bangkok 10100 |
1,750 |
1.17 |
|
Mrs. Ratana Sajdev Nationality: Thai Address : 109
Sukhumvit 12 Rd., Klongtoey, Bangkok
10100 |
1,750 |
1.17 |
|
Mr. Pracha Sivasriaumphai Nationality: Thai Address : 109
Sukhumvit 12 Rd., Klongtoey,
Bangkok 10100 |
875 |
0.58 |
Total Shareholders : 11
Share Structure
[as at April
30, 2012]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
10 |
148,250 |
98.83% |
|
Foreign - Indian |
1 |
1,750 |
1.17% |
|
Total |
11 |
150,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Pichit Srimanjanta
No. 1501
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash in Hand
& at Bank
|
207,383.30 |
439,540.56 |
297,341.20 |
|
Trade Accounts & Notes Receivable |
187,560,222.38 |
256,999,524.28 |
452,916,893.77 |
|
Inventories |
246,032,716.50 |
245,378,117.12 |
211,863,089.92 |
|
Other Current Assets
|
5,670,411.67 |
6,398,063.89 |
5,062,261.55 |
|
Total Current Assets
|
439,470,733.85 |
509,215,245.85 |
670,139,586.44 |
|
|
|
|
|
|
Fixed Assets |
253,708,303.28 |
271,444,808.59 |
277,311,027.80 |
|
Total Assets |
693,179,037.13 |
780,660,054.44 |
947,450,614.24 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan |
155,925,980.53 |
40,075,739.17 |
25,673,425.28 |
|
Trade Accounts Payable |
133,998,464.97 |
194,624,017.88 |
164,385,855.46 |
|
Short-term Loan |
20,146,491.58 |
20,146,491.58 |
189,386,491.58 |
|
Other Current Liabilities |
46,087,134.04 |
43,553,005.64 |
71,280,017.77 |
|
Total Current Liabilities |
356,158,071.12 |
298,399,254.27 |
450,725,791.09 |
|
|
|
|
|
|
Long-term Loan from Financial Institutions |
127,996,689.40 |
233,720,000.00 |
279,074,286.36 |
|
Total Liabilities |
484,154,760.52 |
532,119,254.27 |
729,800,077.45 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000 value
authorized, issued
and fully paid share
capital 150,000 shares |
150,000,000.00 |
150,000,000.00 |
150,000,000.00 |
|
Capital Paid |
150,000,000.00 |
150,000,000.00 |
150,000,000.00 |
|
Retained Earning - Unappropriated |
[136,285,297.56] |
[96,768,774.00] |
[127,659,037.38] |
|
Statutory Reserve |
7,500,000.00 |
7,500,000.00 |
7,500,000.00 |
|
Estimation Assets |
187,809,574.17 |
187,809,574.17 |
187,809,574.17 |
|
Total Shareholders' Equity |
209,024,276.61 |
248,540,800.17 |
217,650,536.79 |
|
Total Liabilities &
Shareholders' Equity |
693,179,037.13 |
780,660,054.44 |
947,450,614.24 |
PROFIT &
LOSS ACCOUNT
|
Sale |
Jan. 1,
2011 - Dec.
31, 2011 |
Jan. 1,
2010 - Dec.
31, 2010 |
Jan. 1, 2009 - Dec.
31, 2009 |
|
|
|
|
|
|
Sales Income |
546,493,459.87 |
638,840,849.72 |
516,780,967.77 |
|
Gain on Exchange Rate |
5,874,771.25 |
- |
- |
|
Other Income |
5,732,586.46 |
1,949,736.27 |
5,323,476.74 |
|
Total Sales |
558,100,817.58 |
640,790,585.99 |
522,104,444.51 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
514,925,256.36 |
572,873,896.34 |
444,951,975.15 |
|
Selling and Administrative Expenses |
63,145,948.59 |
19,194,544.09 |
18,461,593.41 |
|
Loss on Exchange Rate |
- |
10,689,341.70 |
2,615,345.37 |
|
Total Expenses |
578,071,204.95 |
602,757,782.13 |
466,028,913.93 |
|
Profit / [Loss] before Interest
Expenses & Income Tax |
[19,970,387.37] |
38,032,803.86 |
56,075,530.58 |
|
Interest Expenses |
[19,546,136.19] |
[7,142,540.48] |
[37,437,279.18] |
|
Net Profit / [Loss] |
[39,516,523.56] |
30,890,263.38 |
18,638,251.40 |
|
Retained Earning [deficit],
Beginning of
Year |
[96,768,774.00] |
[127,659,037.38] |
[146,297,288.78] |
|
Retained Earning [deficit],
End of
Year |
[136,285,297.56] |
[96,768,774.00] |
[127,659,037.38] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.23 |
1.71 |
1.49 |
|
QUICK RATIO |
TIMES |
0.53 |
0.86 |
1.01 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.15 |
2.35 |
1.86 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.79 |
0.82 |
0.55 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
174.40 |
156.34 |
173.79 |
|
INVENTORY TURNOVER |
TIMES |
2.09 |
2.33 |
2.10 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
125.27 |
146.84 |
319.89 |
|
RECEIVABLES TURNOVER |
TIMES |
2.91 |
2.49 |
1.14 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
94.98 |
124.00 |
134.85 |
|
CASH CONVERSION CYCLE |
DAYS |
204.68 |
179.17 |
358.84 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
94.22 |
89.67 |
86.10 |
|
SELLING & ADMINISTRATION |
% |
11.55 |
3.00 |
3.57 |
|
INTEREST |
% |
3.58 |
1.12 |
7.24 |
|
GROSS PROFIT MARGIN |
% |
7.90 |
10.63 |
14.93 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(3.65) |
5.95 |
10.85 |
|
NET PROFIT MARGIN |
% |
(7.23) |
4.84 |
3.61 |
|
RETURN ON EQUITY |
% |
(18.91) |
12.43 |
8.56 |
|
RETURN ON ASSET |
% |
(5.70) |
3.96 |
1.97 |
|
EARNING PER SHARE |
BAHT |
(263.44) |
205.94 |
124.26 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.70 |
0.68 |
0.77 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.32 |
2.14 |
3.35 |
|
TIME INTEREST EARNED |
TIMES |
(1.02) |
5.32 |
1.50 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(14.46) |
23.62 |
|
|
OPERATING PROFIT |
% |
(152.51) |
(32.18) |
|
|
NET PROFIT |
% |
(227.93) |
65.74 |
|
|
FIXED ASSETS |
% |
(6.53) |
(2.12) |
|
|
TOTAL ASSETS |
% |
(11.21) |
(17.60) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -14.46%. Turnover has decreased from THB
638,840,849.72 in 2010 to THB 546,493,459.87 in 2011. While net profit has decreased
from THB 30,890,263.38 in 2010 to THB -39,516,523.56 in 2011. And total assets
has decreased from THB 780,660,054.44 in 2010 to THB 693,179,037.13 in 2011.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
7.90 |
Deteriorated |
Industrial Average |
47.30 |
|
Net Profit Margin |
(7.23) |
Deteriorated |
Industrial Average |
4.90 |
|
Return on Assets |
(5.70) |
Deteriorated |
Industrial Average |
3.91 |
|
Return on Equity |
(18.91) |
Deteriorated |
Industrial Average |
6.67 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from sales 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 7.9%. 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 -7.23%.
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 -5.7%.
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 -18.91%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.23 |
Satisfactory |
Industrial Average |
1.62 |
|
Quick Ratio |
0.53 |
|
|
|
|
Cash Conversion Cycle |
204.68 |
|
|
|
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 1.23 times in 2011, decreased from 1.71 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 0.53 times in 2011,
decreased from 0.86 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 205 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.70 |
Acceptable |
Industrial Average |
0.41 |
|
Debt to Equity Ratio |
2.32 |
Risky |
Industrial Average |
0.71 |
|
Times Interest Earned |
(1.02) |
Risky |
Industrial Average |
- |
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 -1.03 lower than 1, so the company is not generating
enough cash from EBIT to meet its
interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.7 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.15 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.79 |
Satisfactory |
Industrial Average |
0.80 |
|
Inventory Conversion Period |
174.40 |
|
|
|
|
Inventory Turnover |
2.09 |
Deteriorated |
Industrial Average |
5.08 |
|
Receivables Conversion Period |
125.27 |
|
|
|
|
Receivables Turnover |
2.91 |
Impressive |
Industrial Average |
1.93 |
|
Payables Conversion Period |
94.98 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.91 and 2.49 in
2011 and 2010 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate sale. 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
increased from 2010. 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 156 days at the
end of 2010 to 174 days at the end of 2011. This represents a negative trend.
And Inventory turnover has decreased from 2.33 times in year 2010 to 2.09 times
in year 2011.
The company's Total Asset Turnover is calculated as 0.79 times and 0.82
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 Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.49 |
|
UK Pound |
1 |
Rs.86.00 |
|
Euro |
1 |
Rs.73.68 |
INFORMATION DETAILS
|
Report Prepared
by : |
NLM |
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.