MIRA
INFORM REPORT
|
Report Date : |
15.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
UBE
CHEMICALS [ASIA] PUBLIC
COMPANY LIMITED |
|
|
|
|
Registered Office : |
18th Floor, Sathorn Square Office Tower, 98 North Sathorn Road, Silom, Bangrak,
Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
01.02.2010 |
|
|
|
|
Com. Reg. No.: |
0107553000042 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, distributor and
exporter of industrial
chemicals |
|
|
|
|
No. of Employees : |
680 |
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
UBE CHEMICALS [ASIA]
PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 18th FLOOR,
SATHORN SQUARE OFFICE
TOWER,
98 NORTH
SATHORN ROAD, SILOM,
BANGRAK, BANGKOK
10500
TELEPHONE : [66] 2206-9300
FAX : [66]
2206-9313
E-MAIL
ADDRESS : pirulh@ube.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2010
REGISTRATION
NO. : 0107553000042
TAX
ID NO. : 3033783162
CAPITAL REGISTERED : BHT. 10,739,250,230
CAPITAL PAID-UP : BHT.
10,739,250,230
SHAREHOLDER’S PROPORTION : THAI :
26.22%
JAPANESE :
73.78%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : DR. CHARUNYA PHICHITKUL,
THAI
PRESIDENT AND
CHIEF EXECUTIVE OFFICER
NO.
OF STAFF : 680
LINES
OF BUSINESS : INDUSTRIAL CHEMICALS
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 February 1,
2010 as a
public limited company
under the name
style UBE CHEMICALS [ASIA] PUBLIC
COMPANY LIMITED. by
Thai and Japanese
groups. The subject
was formed by
a merger between
“Thai Caprolactam Public
Company Limited” and “Ube
Nylon [Thailand] Limited”. Its business
objective is to
manufacture and market
industrial chemicals for
various industries to both
domestic and overseas markets. It
currently employs 680
staff.
Subject
is a subsidiary
of Ube Industries,
Ltd. in Japan.
The
subject has been
certified for ISO 9001,
ISO 14001 and OHSAS 18001.
The
subject’s registered address
was initially located
at 87/2 CRC Tower
All Season Place,
Wireless Rd., Lumpini,
Pathumwan, Bangkok 10330.
In
2011, the subject’s
registered address was
relocated to 18th Floor,
Sathorn Square Office
Tower, 98 North Sathorn
Rd., Silom, Bangrak,
Bangkok 10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Shinobu Watanabe |
[x] |
Japanese |
59 |
|
Mr. Athikom Terbsiri |
|
Thai |
51 |
|
Ms. Duangkamol Settadhanang |
|
Thai |
54 |
|
Mr. Charnsilp Trinuchakorn |
|
Thai |
53 |
|
Dr. Charunya Pichitkul |
[x] |
Thai |
59 |
|
Mr. Suriyon Wanphen |
[x] |
Thai |
55 |
|
Mr. Vachara Pattananijnirandorn |
[x] |
Thai |
51 |
|
Mr. Anuchit Thiranuchit |
[x] |
Thai |
54 |
|
Mr. Masayoshi Ota |
[x] |
Japanese |
49 |
|
Mr. Yukimi Aoki |
[x] |
Japanese |
62 |
|
Mr. Masaro Suehiro |
[x] |
Japanese |
53 |
|
Mr. Satoshi Kusano |
[x] |
Japanese |
47 |
AUTHORIZED PERSON
Any two of
the mentioned directors
[x] can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Dr. Charunya Pichitkul
is the President
and Chief Executive
Officer.
He is Thai
nationality with the
age of 59
years old.
Mr. Suriyon Wanphen
is the Vice
President.
He is Thai
nationality with the
age of 55 years old.
Mr. Masaro Suehiro
is the Vice
President.
He is Japanese
nationality with the
age of 53
years old.
Mr. Boonsom Ruangmanee
is the Projects
Manager.
He is Thai
nationality.
BUSINESS
OPERATIONS
The subject is engaged in
manufacturing and supplying
industrial chemicals such
as Caprolactam, Nylon
6 [Monofilament], Ammonium Sulfate
and Nylon Compound for textile,
agro-chemical, automotive parts,
water treatment industries
and etc.
PRODUCTION CAPACITY
Caprolactam : 1,100,000 tons per
annum
Nylon 6 : 75,000 tons per
annum
Nylon compound : 11,000 tons per
annum
Ammonium Sulfate :
540,000 tons per
annum
PURCHASE
Most of raw
materials are purchased
from local suppliers,
the remaining as
well as machinery
are imported from
Japan, Republic of
China, Taiwan, Germany
and U.S.A.
MAJOR
SUPPLIERS
Ube
Industries, Ltd. : Japan
IRPC
Public Company Limited : Thailand
SALES
The products are
sold by wholesale
to customers both
local and overseas,
mainly in Japan, Singapore, Korea, Republic of China,
Taiwan, Indonesia, Malaysia, Vietnam, U.S.A. and
the countries in
Europe.
MAJOR CUSTOMERS
Rayong Fertilizer Trading
Co., Ltd. : Thailand
P.N.R. Parich Co.,
Ltd. : Thailand
Parich
Fertilizer Co., Ltd. : Thailand
RELATED AND AFFILIATED
COMPANIES
Thai Synthetic Rubbers
Co., Ltd.
Business Type :
Manufacturer of synthetic
rubber
Ube Technical Center
[Asia] Ltd.
Business Type :
Research and development
center
Rayong Fertilizer Trading
Co., Ltd.
Business Type :
Distributor of ammonium
sulfate
Ube Fine Chemicals
[Asia] Co., Ltd.
Business Type :
Distributor of Hexanediol
and Pentanediol
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
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately
680 office staff
and factory workers.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Branches
and Factories:
There
are 3 factories
on 220,000 square
meters of land,
located at the
following addresses:
- 140/6 Moo 4,
T. Tapong, A. Muang, Rayong
21000
- 140/8 Moo 4,
T. Tapong, A. Muang, Rayong
21000
- 140/10 Moo 4,
T. Tapong, A. Muang,
Rayong 21000.
COMMENT
The
subject is poised to
play a vital role as
the leading supplier
for quality Nylon 6 in Thailand.
As a front-runner of top-of-the-line nylon manufacturing for over
three decades, the
subject is one
of the world’s
leading producers of raw
materials for nylon (Carpolactum) and nylon
resin as well.
With
over 15 Billion Baht
asset and 600
employees in Thailand,
the subject continues to improve and
expand in production
capacity and products
lines. Thailand has
also been selected
as one of
three strategic locations
besides Japan and
Spain.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 8,804,437,660
divided into 880,443,766
shares of Bht.
10 each with
fully paid.
In
2002, the registered
capital was increased
to 10,739,250,230 divided
into 1,073,925,023 shares
of Bht. 10
each with fully
paid.
MAIN
SHAREHOLDERS : [as
at April 23,
2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ube Industries, Ltd. Nationality: Japanese Address : 1-2-1
Chibaura, Minato-ku, Tokyo, Japan |
792,286,698 |
73.77 |
|
IRPC Public Company
Limited Nationality: Thai Address : 299
Moo 5, Sukhumvit
Rd., Cherngnoen,
Muang,, Rayong |
268,481,257 |
25.00 |
|
Bangkok Bank Public
Co., Ltd. Nationality: Thai Address : 333
Silom Rd., Silom,
Bangrak, Bangkok |
9,732,013 |
0.91 |
|
Mr. Sombat Panitchewa Nationality: Thai Address : 247/1
Nanglinchee Rd., Chongnonsi,
Yannawa, Bangkok |
1,999,092 |
0.19 |
|
Others |
1,425,963 |
0.13 |
Total Shareholders : 28
Share Structure [as
at April 23,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
22 |
281,638,115 |
26.22 |
|
Foreign-Japanese |
6 |
792,286,908 |
73.78 |
|
Total |
28 |
1,073,925,023 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Kamolthip
Lertwitvorathep No. 4377
BALANCE SHEET [BAHT]
The latest financial figures published as at December 31, 2012, 2011 & 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Cash and Cash Equivalents |
546,256,870 |
1,582,296,409 |
1,487,955,474 |
|
Trade Accounts and
Other Receivable |
1,259,638,619 |
1,119,590,093 |
996,251,621 |
|
Short-term Lending to Related
Company |
4,500,000 |
- |
- |
|
Inventories |
3,324,967,299 |
2,955,097,725 |
2,055,963,946 |
|
Refundable Input Tax |
194,251,395 |
146,443,423 |
415,414,370 |
|
Other Current Assets
|
52,841,783 |
25,285,534 |
118,905,078 |
|
|
|
|
|
|
Total Current Assets
|
5,382,455,966 |
5,828,713,184 |
5,074,490,489 |
|
Cash at Bank pledged as a
Collateral |
5,000,000 |
5,001,058 |
5,000,000 |
|
Investment in Subsidiaries |
100,000,000 |
174,994,000 |
99,993,000 |
|
Fixed Assets |
9,674,658,386 |
9,761,882,073 |
9,036,849,399 |
|
Intangible Assets |
227,826,591 |
250,425,836 |
205,151,275 |
|
Advance Goods |
462,833,340 |
342,102,810 |
20,000,004 |
|
Deferred Income Tax Assets |
20,305,059 |
33,753,727 |
42,300,000 |
|
Other Non - current Assets |
13,139,697 |
62,439,865 |
105,760,830 |
|
Total Assets |
15,886,219,039 |
16,459,312,553 |
14,589,544,997 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Trade Accounts and
Other Payable |
857,655,434 |
1,550,641,777 |
899,845,036 |
|
Current Portion of
Financial Lease Contract Liabilities
|
2,092,586 |
1,598,962 |
- |
|
Current Portion of
Long-term Loans |
344,852,750 |
524,211,260 |
500,563,020 |
|
Current Portion of Long-term
Loans from Customer
Deposit |
18,792,900 |
21,651,315 |
19,646,445 |
|
Advance Receipt |
69,382,843 |
162,682,977 |
162,133,669 |
|
Accrued Expenses |
176,521,177 |
266,313,436 |
92,763,350 |
|
Estimated Liabilities Insurance |
- |
59,293,398 |
141,000,000 |
|
Accrued Income Tax |
61,856,536 |
244,224,356 |
449,751,463 |
|
Other Current Liabilities |
2,644,295 |
2,950,927 |
3,509,730 |
|
|
|
|
|
|
Total Current Liabilities |
1,533,798,521 |
2,833,568,408 |
2,269,212,713 |
|
Financial Lease Contract Liabilities, Net of Current Portion |
1,739,844 |
2,826,709 |
- |
|
Long-term Loan, Net of Current Portion |
272,598,000 |
635,691,870 |
1,109,689,010 |
|
Long-term Loans from Customer Deposit, Net of Current
Portion |
136,550,300 |
173,210,520 |
176,818,005 |
|
Reserve for Employee
Benefits |
77,475,326 |
72,648,028 |
- |
|
Total Liabilities |
2,022,161,991 |
3,717,945,535 |
3,555,719,728 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 1,073,925,023 shares in
2012; and 880,443,766
in 2011 & 2010
respectively |
10,739,250,230 |
8,804,437,660 |
8,804,437,660 |
|
|
|
|
|
|
Capital Paid |
10,739,250,230 |
8,804,437,660 |
8,804,437,660 |
|
Premium on Share Capital |
1,941,061,791 |
56,554,348 |
56,554,348 |
|
Retained Earnings: Appropriated for Statutory Reserve |
220,896,216 |
168,193,193 |
80,207,608 |
|
Unappropriated |
962,848,811 |
3,712,181,817 |
2,092,625,653 |
|
Total Shareholders' Equity |
13,864,057,048 |
12,741,367,018 |
11,033,825,269 |
|
Total Liabilities &
Shareholders' Equity |
15,886,219,039 |
16,459,312,553 |
14,589,544,997 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Sales Income |
16,301,886,555 |
15,331,433,947 |
10,603,012,378 |
|
Management Income |
105,719,983 |
92,897,842 |
83,349,809 |
|
Gain on Exchange Rate |
104,654,546 |
33,204,603 |
154,311,789 |
|
Other Income |
92,867,791 |
78,358,712 |
8,510,153 |
|
Total Revenues |
16,605,128,875 |
15,535,895,104 |
10,849,184,129 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
14,337,454,312 |
11,935,670,460 |
8,482,044,090 |
|
Cost of Management |
59,854,800 |
53,117,296 |
67,559,974 |
|
Selling Expenses |
282,922,459 |
228,459,469 |
186,105,143 |
|
Administrative Expenses |
635,207,175 |
1,070,202,615 |
648,105,891 |
|
Other Expenses |
40,285,825 |
39,559,037 |
2,097,542 |
|
Total Expenses |
15,355,724,571 |
13,327,008,877 |
9,385,912,640 |
|
|
|
|
|
|
Profit before Financial
Expenses & Income
Tax |
1,249,404,304 |
2,208,886,227 |
1,463,271,489 |
|
Financial Expenses |
[20,918,501] |
[33,382,508] |
[34,069,224] |
|
Profit before Income
Tax |
1,228,485,803 |
2,175,503,719 |
1,429,202,265 |
|
Income Tax |
[174,425,343] |
[415,791,997] |
[410,867,784] |
|
|
|
|
|
|
Net Profit / [Loss] |
1,054,060,460 |
1,759,711,722 |
1,018,334,481 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
3.51 |
2.06 |
2.24 |
|
QUICK RATIO |
TIMES |
1.18 |
0.95 |
1.09 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.70 |
1.58 |
1.18 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.03 |
0.94 |
0.73 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
84.29 |
89.97 |
87.77 |
|
INVENTORY TURNOVER |
TIMES |
4.33 |
4.06 |
4.16 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
28.02 |
26.49 |
34.03 |
|
RECEIVABLES TURNOVER |
TIMES |
13.03 |
13.78 |
10.73 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
21.74 |
47.21 |
38.42 |
|
CASH CONVERSION CYCLE |
DAYS |
90.57 |
69.25 |
83.38 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
87.75 |
77.73 |
80.00 |
|
SELLING & ADMINISTRATION |
% |
5.60 |
8.42 |
7.81 |
|
INTEREST |
% |
0.13 |
0.22 |
0.32 |
|
GROSS PROFIT MARGIN |
% |
13.46 |
23.00 |
21.52 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
7.61 |
14.32 |
13.69 |
|
NET PROFIT MARGIN |
% |
6.42 |
11.41 |
9.53 |
|
RETURN ON EQUITY |
% |
7.60 |
13.81 |
9.23 |
|
RETURN ON ASSET |
% |
6.64 |
10.69 |
6.98 |
|
EARNING PER SHARE |
BAHT |
0.98 |
2.00 |
1.16 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.13 |
0.23 |
0.24 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.15 |
0.29 |
0.32 |
|
TIME INTEREST EARNED |
TIMES |
59.73 |
66.17 |
42.95 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
6.37 |
44.34 |
|
|
OPERATING PROFIT |
% |
(43.44) |
50.96 |
|
|
NET PROFIT |
% |
(40.10) |
72.80 |
|
|
FIXED ASSETS |
% |
(0.89) |
8.02 |
|
|
TOTAL ASSETS |
% |
(3.48) |
12.82 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is 6.37%. Turnover has increased from THB
15,424,331,789.00 in 2011 to THB 16,407,606,538.00 in 2012. While net profit
has decreased from THB 1,759,711,722.00 in 2011 to THB 1,054,060,460.00 in
2012. And total assets has decreased from THB 16,459,312,553.00 in 2011 to THB
15,886,219,039.00 in 2012.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
13.46 |
Deteriorated |
Industrial Average |
40.70 |
|
Net Profit Margin |
6.42 |
Impressive |
Industrial Average |
5.11 |
|
Return on Assets |
6.64 |
Impressive |
Industrial Average |
4.22 |
|
Return on Equity |
7.60 |
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. The company's figure is 13.46%. 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 6.42%,
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
6.64%, 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 7.6%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profit in a dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Downtrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
3.51 |
Impressive |
Industrial Average |
1.72 |
|
Quick Ratio |
1.18 |
|
|
|
|
Cash Conversion Cycle |
90.57 |
|
|
|
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 3.51 times in 2012, increased from 2.06 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 1.18 times in 2012,
increased from 0.95 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 91 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.13 |
Impressive |
Industrial Average |
0.39 |
|
Debt to Equity Ratio |
0.15 |
Impressive |
Industrial Average |
0.65 |
|
Times Interest Earned |
59.73 |
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 59.73 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 0.13 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 |
1.70 |
Impressive |
Industrial Average |
0.38 |
|
7Total Assets Turnover |
1.03 |
Impressive |
Industrial Average |
0.82 |
|
Inventory Conversion Period |
84.29 |
|
|
|
|
Inventory Turnover |
4.33 |
Satisfactory |
Industrial Average |
5.15 |
|
Receivables Conversion Period |
28.02 |
|
|
|
|
Receivables Turnover |
13.03 |
Impressive |
Industrial Average |
2.38 |
|
Payables Conversion Period |
21.74 |
|
|
|
The company's Account Receivable Ratio is calculated as 13.03 and 13.78
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 decreased from 90 days at the end of 2011 to 84
days at the end of 2012. This represents a positive trend. And Inventory
turnover has increased from 4.06 times in year 2011 to 4.33 times in year 2012.
The company's Total Asset Turnover is calculated as 1.03 times and 0.94
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.57.74 |
|
UK Pound |
1 |
Rs.90.64 |
|
Euro |
1 |
Rs.77.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.