MIRA INFORM REPORT
|
Report Date : |
19.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
THE SUN CHEMICAL CO. LTD. |
|
|
|
|
Registered Office : |
701/301 Soi Pattanakarn
30, Pattanakarn Rd.,
Suanluang, Bangkok 10250 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
28.06.2001 |
|
|
|
|
Com. Reg. No.: |
0105544060486 [Former :
[5] 1122/2544] |
|
|
|
|
Legal Form : |
Private Limited Company
|
|
|
|
|
Line of Business : |
subject engaged in
importing and distributing chemical base
and specialty chemicals
for various industries such
as petroleum, construction, cosmetics,
detergents, households, pharmaceutical, rubbers,
textiles, toiletry, foods |
|
|
|
|
No. of Employees : |
43 |
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
THE SUN CHEMICAL CO. LTD.
SUMMARY
BUSINESS
ADDRESS : 701/301 SOI
PATTANAKARN 30,
PATTANAKARN ROAD,
SUANLUANG,
BANGKOK 10250,
THAILAND
TELEPHONE : [66] 2319-1026
FAX :
[66] 2318-1158,
2319-5791
E-MAIL
ADDRESS : tanachok@thesunchemical.co.th
info@thesunchemical.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2001
REGISTRATION
NO. : 0105544060486 [Former :
[5] 1122/2544]
TAX
ID NO. : 3030301378
CAPITAL REGISTERED : BHT. 28,000,000
CAPITAL PAID-UP : BHT.
28,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
TANACHOK KRISADAPONG, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 43
LINES
OF BUSINESS : INDUSTRIAL CHEMICALS
IMPORTER AND
DISTRIBUTOR
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 June
28, 2001 as
a private limited
company under the name style THE SUN CHEMICAL CO., LTD.
by Mr. Tanachok Krisadapong
and Thai groups, in order to
import and distribute
industrial chemicals to
local market. It currently
employs 43 staff.
The subject’s registered
address was initially
located at 19 Soi
Panya Village 3,
Pattanakarn Rd., Suanluang, Bangkok
10250.
On August 16, 2002, the
registered address was
relocated to 701/301
Soi Pattanakarn 30,
Pattanakarn Rd., Suanluang,
Bangkok 10250, and
this is subject’s
current operation address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Tanachok Krisadapong |
[x] |
Thai |
41 |
|
Mrs. Panisara Krisadapong |
|
Thai |
36 |
AUTHORIZED
PERSON
The above director
[x] signs on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Tanachok Krisadapong
is the Managing
Director.
He is Thai
nationality with the
age of 41
years old.
He has been
the Managing Director
since the subject’s
inception in 2001.
Mr. Jittapan Hongsiri is
the General Manager.
He is Thai nationality.
Mrs. Panisara Krisadapong is
the Accounting and
Financial Director.
She is Thai
nationality with the
age of 36
years old.
Mr. Kriangkrai Prasitiphol
is the New
Business Development Manager.
He is Thai
nationality.
Ms. Ravisada Wongpadsa is
the Sales Manager.
She is Thai
nationality.
BUSINESS
OPERATIONS
The subject is engaged in
importing and distributing chemical base
and specialty chemicals
for various industries such
as petroleum, construction,
cosmetics, detergents, households,
pharmaceutical, rubbers, textiles,
toiletry, foods and
etc. The subject
has been approved as
a sole distributor of
BASF AG, WACKER-Chemie
GmbH, and SASOL
in Germany.
IMPORT
80% of the
products is imported
from United States of
America, United Kingdom, Germany, France,
Italy, Japan, Netherlands,
Denmark, India, Malaysia,
Spain, Singapore, Republic
of China and
Taiwan, the remaining
20% is purchased
from local suppliers.
MAJOR
SUPPLIERS
BASF AG. : Germany
Jos. H. Lowenstein & Sons
Inc. : U.S.A.
Merkur Vaseline GmbH. & Co. KG. :
Germany
Sasol Olefins &
Surfactants GmbH. : Germany
Strahl & Pitsch
Inc. : U.S.A.
Wacker-Chemie GmbH. : Germany
Venture Chemical Ltd. : Japan
Alzo International Incorporation : U.S.A.
Brenntag Specialties Inc. : U.S.A.
3V Group Spa. : Italy
Elementis Specialties Netherlands
BV. : Netherlands
Feixiang Chemicals
[Zhangjiagang] Co., Ltd. : Republic
of China
Vertellus Specialties Inc. : U.S.A.
Tayca Corporation : Japan
Kalon Life Science
Inc. : U.S.A.
Danisco A/S : Denmark
Genencor International Ltd. : U.K.
Danisco [India] Pvt.
Ltd. : India
SALES
[LOCAL]
The products are
sold locally by
wholesale to manufacturers, dealers
and retail sales
to end-users.
SUBSIDIARY
AND AFFILIATED COMPANY
The subject is
not found to have any subsidiary
or affiliated company
here in Thailand.
LITIGATION
Bankruptcy and Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the
subject found at
Legal Execution Department
for the past
five years.
Others
There are no
legal suits filed
against the subject for the
past two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
and T/T.
BANKING
The Siam Commercial
Bank Public Co.,
Ltd.
Kasikornbank Public Co.,
Ltd.
Bangkok Bank Public
Co., Ltd.
Export-Import Bank
of Thailand
[Head Office
: Phaholyothin Rd.,
Samsennai, Phyathai, Bangkok
10400]
EMPLOYMENT
The subject employs
43 staff.
LOCATION
DETAILS
The premise is owned for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Warehouse is located at 11/37 Soi Watnamdaeng, Srinakarin Rd.,
Bangkaew, Bangplee, Samutprakarn
10540. Tel :
[66] 2753-5281, Fax. 2753-5672.
COMMENT
The subject’s business has
grown viable in
line with industrial upturn. Its business
performance in 2013
was reported at
strong level. As
the market leader, the subject has
committed itself to provide
the best services
and quality products
to serve demand
from various industries.
FINANCIAL INFORMATION
The capital was
initially registered at Bht.
1,870,000 divided into 187,000
shares of Bht.
10 each.
The capital was
increased later as
follows:
Bht. 8,700,000
on August 16, 1997
Bht. 18,700,000
on October 22, 2001
Bht. 28,000,000
on June 28,
2006
The latest registered
capital was increased
to Bht. 28,000,000 divided
into 2,800,000 shares
of Bht. 10
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
[as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Tanachok Krisadapong Nationality: Thai Address : 19 Soi
Panya Village 3, Pattanakarn
Rd., Suanluang, Bangkok
10250 |
2,799,994 |
100.00 |
|
Mrs. Panisara Krisadapong Nationality: Thai Address : 19
Soi Panya Village
3, Pattanakarn Rd., Suanluang, Bangkok
10250 |
1 |
- |
|
Mr. Soonthorn Kittikarnjanakorn Nationality: Thai Address : 368/82
Moo 2, Bangmod, Thungkru,
Bangkok |
1 |
- |
|
Mrs. Patima Kittikarnjanakorn Nationality: Thai Address : 368/82
Moo 2, Bangmod, Thungkru,
Bangkok |
1 |
- |
|
Mr. Chatchai Krisadapong Nationality: Thai Address : 19
Soi Panya Village
3, Pattanakarn Rd., Suanluang, Bangkok
10250 |
1 |
- |
|
Mrs. Pornpayao Krisadapong Nationality: Thai Address : 25/205
Moo 5, Bangbor, Samutprakarn |
1 |
- |
|
|
|
|
|
Mrs. Teerabul Krisadapong Nationality: Thai Address : 19
Soi Panya Village
3, Pattanakarn Rd., Suanluang, Bangkok
10250 |
1 |
- |
Total Shareholders : 7
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
2,800,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
2,800,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Sivachai Komethongsathit No.
6314
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
|
37,412,798.91 |
75,333,894.89 |
83,559,165.64 |
|
Trade Accounts, Notes
& Other Receivable |
242,884,574.77 |
265,449,337.12 |
257,474,426.05 |
|
Inventories |
303,696,667.91 |
307,733,517.15 |
328,264,473.53 |
|
Other Current Assets |
171,708.51 |
3,816,826.06 |
5,686,640.94 |
|
|
|
|
|
|
Total Current Assets
|
584,165,750.10 |
652,333,575.22 |
674,984,706.16 |
|
Cash at Bank under Commitment
|
- |
10,010,000.00 |
52,120,017.15 |
|
Fixed Assets |
173,842,925.58 |
146,538,276.41 |
23,508,226.05 |
|
Intangible Assets |
201,956.97 |
263,482.13 |
- |
|
Other non-current Assets |
3,115,674.18 |
1,041,456.18 |
924,169.70 |
|
Total Assets |
761,326,306.83 |
810,186,789.94 |
751,537,119.06 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
329,488,041.09 |
419,897,717.26 |
373,010,147.98 |
|
Trade Accounts, Notes
& Other Payable |
161,317,045.85 |
130,818,554.37 |
110,969,269.38 |
|
Current Portion of
Hire-purchase Contract Liabilities |
- |
- |
3,490,852.37 |
|
Current Portion of Finance Lease
Contract Liabilities |
5,793,720.22 |
2,679,958.25 |
- |
|
Current Portion of
Long-term Liabilities |
- |
29,376,000.00 |
- |
|
Accrued Income Tax |
7,183,139.25 |
- |
18,481,141.90 |
|
Accrued Expenses |
- |
- |
10,346,435.94 |
|
Accrued Dividend |
- |
- |
30,987,322.66 |
|
Accrued Other Expenses |
- |
- |
1,890,995.07 |
|
Other Current Liabilities |
1,321,562.56 |
1,481,541.34 |
- |
|
|
|
|
|
|
Total Current Liabilities |
505,103,508.97 |
584,253,771.22 |
549,176,165.30 |
|
Long-term Loan from Related
Person |
10,520,945.05 |
9,533,575.05 |
10,012,025.05 |
|
Hire-purchase Contract
Liabilities - Net |
- |
- |
8,493,277.10 |
|
Finance Lease Contract
Liabilities - Net |
6,208,014.33 |
4,035,904.61 |
- |
|
Long-term Loan from Financial Institution |
- |
10,378,000.00 |
- |
|
Employee Benefit Obligation |
7,370,668.19 |
6,675,201.25 |
- |
|
Total Liabilities |
529,203,136.54 |
614,876,452.13 |
567,681,467.45 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 2,800,000 shares |
28,000,000.00 |
28,000,000.00 |
28,000,000.00 |
|
|
|
|
|
|
Capital Paid |
28,000,000.00 |
28,000,000.00 |
28,000,000.00 |
|
Retained Earnings Appropriated for
Statutory Reserve |
2,800,000.00 |
2,800,000.00 |
2,800,000.00 |
|
Unappropriated |
201,323,170.29 |
164,510,337.81 |
153,055,651.61 |
|
Total Shareholders' Equity |
232,123,170.29 |
195,310,337.81 |
183,855,651.61 |
|
Total Liabilities & Shareholders' Equity |
761,326,306.83 |
810,186,789.94 |
751,537,119.06 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
1,357,593,615.72 |
1,271,657,045.88 |
1,281,184,096.19 |
|
Gain on Exchange Rate |
15,765,993.45 |
- |
33,796,209.57 |
|
Interest Income |
587,613.36 |
655,099.13 |
287,618.05 |
|
Other Income |
1,634,453.54 |
416,848.04 |
280,573.39 |
|
Total Revenues |
1,375,581,676.07 |
1,272,728,993.05 |
1,315,548,497.20 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,221,562,178.30 |
1,123,398,018.86 |
1,131,244,655.27 |
|
Selling Expenses |
26,582,953.81 |
24,526,942.68 |
21,791,989.12 |
|
Administrative Expenses |
61,052,346.50 |
84,686,661.10 |
51,743,912.97 |
|
Total Expenses |
1,309,197,478.61 |
1,232,611,622.64 |
1,204,780,557.36 |
|
|
|
|
|
|
Profit before Finance Cost
& Income Tax |
66,384,197.46 |
40,117,370.41 |
110,767,939.84 |
|
Finance Cost - Interest
Expenses |
[15,370,209.48] |
[14,647,348.34] |
[8,248,240.32] |
|
|
|
|
|
|
Profit before Income
Tax |
51,013,987.98 |
25,470,022.07 |
102,519,699.52 |
|
Income Tax |
[14,201,155.50] |
[14,015,335.87] |
[32,596,042.36] |
|
|
|
|
|
|
Net Profit / [Loss] |
36,812,832.48 |
11,454,686.20 |
69,923,657.16 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.16 |
1.12 |
1.23 |
|
QUICK RATIO |
TIMES |
0.55 |
0.58 |
0.62 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.81 |
8.68 |
54.50 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.78 |
1.57 |
1.70 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
90.74 |
99.98 |
105.92 |
|
INVENTORY TURNOVER |
TIMES |
4.02 |
3.65 |
3.45 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
65.30 |
76.19 |
73.35 |
|
RECEIVABLES TURNOVER |
TIMES |
5.59 |
4.79 |
4.98 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
48.20 |
42.50 |
35.80 |
|
CASH CONVERSION CYCLE |
DAYS |
107.84 |
133.67 |
143.46 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
89.98 |
88.34 |
88.30 |
|
SELLING & ADMINISTRATION |
% |
6.46 |
8.59 |
5.74 |
|
INTEREST |
% |
1.13 |
1.15 |
0.64 |
|
GROSS PROFIT MARGIN |
% |
11.35 |
11.74 |
14.39 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.89 |
3.15 |
8.65 |
|
NET PROFIT MARGIN |
% |
2.71 |
0.90 |
5.46 |
|
RETURN ON EQUITY |
% |
15.86 |
5.86 |
38.03 |
|
RETURN ON ASSET |
% |
4.84 |
1.41 |
9.30 |
|
EARNING PER SHARE |
BAHT |
13.15 |
4.09 |
24.97 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.70 |
0.76 |
0.76 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.28 |
3.15 |
3.09 |
|
TIME INTEREST EARNED |
TIMES |
4.32 |
2.74 |
13.43 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
6.76 |
(0.74) |
|
|
OPERATING PROFIT |
% |
65.47 |
(63.78) |
|
|
NET PROFIT |
% |
221.38 |
(83.62) |
|
|
FIXED ASSETS |
% |
18.63 |
523.35 |
|
|
TOTAL ASSETS |
% |
(6.03) |
7.80 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 6.76%. Turnover has increased from THB
1,271,657,045.88 in 2011 to THB 1,357,593,615.72 in 2012. While net profit has
increased from THB 11,454,686.20 in 2011 to THB 36,812,832.48 in 2012. And
total assets has decreased from THB 810,186,789.94 in 2011 to THB
761,326,306.83 in 2012.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.35 |
Deteriorated |
Industrial
Average |
27.90 |
|
Net Profit Margin |
2.71 |
Impressive |
Industrial
Average |
2.46 |
|
Return on Assets |
4.84 |
Impressive |
Industrial
Average |
4.64 |
|
Return on Equity |
15.86 |
Impressive |
Industrial
Average |
9.65 |
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 11.35%. 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 2.71%, higher figure when compared with those
of its average competitors in the same industry, indicated that business was an
efficient operator in a dominant
position within its industry.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. Return on Assets ratio is
4.84%, 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 15.86%, 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 |
1.16 |
Satisfactory |
Industrial
Average |
1.37 |
|
Quick Ratio |
0.55 |
|
|
|
|
Cash Conversion Cycle |
107.84 |
|
|
|
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 1.16 times in 2012, increased from 1.12 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 0.55 times in 2012,
decreased from 0.58 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 108 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.70 |
Acceptable |
Industrial
Average |
0.50 |
|
Debt to Equity Ratio |
2.28 |
Risky |
Industrial
Average |
0.94 |
|
Times Interest Earned |
4.32 |
Impressive |
Industrial
Average |
1.20 |
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 4.32 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 0.7 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 |
7.81 |
Impressive |
Industrial
Average |
1.55 |
|
Total Assets Turnover |
1.78 |
Satisfactory |
Industrial
Average |
1.83 |
|
Inventory Conversion Period |
90.74 |
|
|
|
|
Inventory Turnover |
4.02 |
Deteriorated |
Industrial
Average |
8.85 |
|
Receivables Conversion Period |
65.30 |
|
|
|
|
Receivables Turnover |
5.59 |
Impressive |
Industrial
Average |
3.74 |
|
Payables Conversion Period |
48.20 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.59 and 4.79 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 decreased from 100 days at the
end of 2011 to 91 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 3.65 times in year 2011 to 4.02 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.78 times and 1.57
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 Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian
Rupees |
|
US Dollar |
1 |
Rs.58.45 |
|
UK Pound |
1 |
Rs.91.59 |
|
Euro |
1 |
Rs.77.91 |
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.