MIRA INFORM REPORT
|
Report Date : |
29.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
CAPSUGEL
[THAILAND] CO., LTD. |
|
|
|
|
Formerly Known as: |
International
Capsule Co., Ltd. |
|
|
|
|
Registered Office : |
1/82 Moo 5, Rojana Industrial Estate, Rojana Road, T. Kanham, A. Uthai, Ayutthaya 13210 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
17.02.1983 |
|
|
|
|
Com. Reg. No.: |
0105526006556 [Former :
655/2526] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
importer,
distributor and re-exporter
wide range of empty gelatin capsule
products for pharmaceutical
and dietary supplement
applications |
|
|
|
|
No. of Employees : |
30 |
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
CAPSUGEL [THAILAND]
CO., LTD.
[FORMER : INTERNATIONAL CAPSULE
CO., LTD.]
SUMMARY
BUSINESS
ADDRESS : 18th FLOOR,
SERM-MIT TOWER,
159
SUKHUMVIT 21
[ASOKE] ROAD,
KLONGTOEYNUA, WATTANA,
BANGKOK 10110,
THAILAND
TELEPHONE : [66] 2260-3810-8
FAX :
[66] 2260-3819
E-MAIL
ADDRESS : kriengsak.piyathanavong@capsugel.com
REGISTRATION
ADDRESS : 1/82
MOO 5, ROJANA
INDUSTRIAL ESTATE,
ROJANA ROAD,
T. KANHAM, A.
UTHAI,
AYUTTHAYA 13210,
THAILAND
ESTABLISHED
: 1983
REGISTRATION
NO. : 0105526006556 [Former : 655/2526]
TAX
ID NO. : 3101221138
CAPITAL REGISTERED : BHT. 170,000,000
CAPITAL PAID-UP : BHT.
170,000,000
SHAREHOLDER’S PROPORTION : FOREIGN :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
[Former : NOVEMBER
30]
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. KRIENGSAK PIYATHANAVONG, THAI
GENERAL MANAGER,
MARKETING & SALES
MANAGER
NO.
OF STAFF : 30
LINES
OF BUSINESS : EMPTY
GELATIN CAPSULE PRODUCTS
IMPORTER, DISTRIBUTOR AND
RE-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
17, 1983 as
a private limited
company under the registered
name “International Capsule
Co., Ltd.” by Thai
and Dutch Groups.
On February 12,
2002, the subject’s name was
changed to CAPSUGEL [THAILAND]
CO., LTD. It currently
employs approximately 30
staff.
The subject is
an affiliate of
Capsugel, the world’s
leading two-piece hard
gelatin capsule producer
and a division
of Pfizer Inc.
On February 1,
1999, the subject received the
International Standard ISO 9002
certification to manufacture hard
gelatin capsules by
RWTUV, and ISO
14001 certificate for
environmental system by
RWTUV on March
7, 2003.
On October 25,
2000, the subject
was invested about
500 million baht
and 270 million
baht to produce
5,250 million of
gelatin capsules and
5,250 million of
hard gelatin capsules
per year respectively
with BOI promoted.
On August 1,
2011, the subject
has become a
wholly owned subsidiary
of Capsugel Belgium
BVBA, in Belgium.
The subject adopts the Acceptable Quality Level (AQL) standard, in
addition to the ISO 9001:2000
quality management system,
to create quality consciousness.
During the last
quarter of 2011, its
plant had been inundated by
the massive floods
in Thailand. This has
forced the subject
to stop production. At
present, the subject
is an importer
and distributor of
empty gelatin capsule
products to customers
in both domestic
and international markets.
The subject’s registered
address is 1/82
Moo 5, Rojana Industrial
Estate, Rojana Rd.,
T. Kamham, A. Uthai, Ayutthaya
13210, while the
subject’s current operation
address is at 18th Floor,
Serm-Mit Tower, 159
Sukhumvit 21 [Asoke]
Rd., Klongtoeynua, Wattana,
Bangkok 10110.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kriengsak Piyathanavong |
|
Thai |
57 |
|
Ms. Vilaiporn Laochuwongse |
|
Thai |
60 |
|
Mrs. Siriporn Sridej |
|
Thai |
48 |
|
Mr. Guido Edouard
Driesen |
|
Belgian |
57 |
AUTHORIZED PERSON
Two of the
above directors can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Kriengsak Piyathanavong is
the G.M. / Marketing &
Sales Manager.
He is Thai
nationality with the
age of 57
years old.
Ms. Vilaiporn Laochuwongse is
the Finance &
Account Manager.
She is Thai
nationality with the
age of 60
years old.
BUSINESS OPERATIONS
The subject’s current
activities are engaged
in importing, distributing
and re-exporting wide range of
empty gelatin capsule products for pharmaceutical and
dietary supplement applications. Its products
include hard gelatin capsules, plus
HPMC capsules, DR caps
gastro resistant capsules,
flexible gelcaps, liquid capsules, over
encapsulation capsules, pre-clinical capsules,
pullulan capsules, gelatin
capsules, fish gelatin
capsules and pearlescent
capsules. Its products
are supplied to
food& dietary supplement and
pharmaceutical industry.
PURCHASE
The products are
imported from Japan,
Indonesia, Republic of China,
India, Belgium and
France, as well
as are purchased
from local suppliers.
MAJOR SUPPLIERS
Capsugel Belgium BVBA : Belgium
Capsugel Healthcare Ltd. : India
Zuhhou Capsugel Ltd. : Republic
of China
SALES
Its products are
sold to manufacturers, wholesalers
and end-users, both local and
overseas, mainly in
Singapore, Philippines, Malaysia, Vietnam, Australia and
Pakistan.
MAJOR CUSTOMER
Thai Government Pharmaceutical Organization
PARENT COMPANY
Capsugel Belgium BVBA
Business Address :
Rijksweg 11, 2880
Bornem, Belgium
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
or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Rojana Branch : Rojana Rd., Uthai,
Ayutthaya 13210]
Citibank, NA
[Bangkok Branch : 82
North Sathorn Rd.,
Bangrak, Bangkok 10500]
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
approximately 30 staff.
[office and sales
staff]
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Warehouse is located
at 1/82 Moo 5,
Rojana Industrial Estate,
Rojana Rd., T. Kamham,
A. Uthai, Ayutthaya 13210.
COMMENT
Growth of capsule products
consumption remains strong
from dietary supplement products,
for health, skin
and weight control. Pharmaceutical
and food supplement
industries have shown
stable growth both
local and international
markets. However, its
business slump has
seen since October of
2011 due to the
production facilities has
been stopped from
severe floods.
At present, the subject
converted its business from
manufacturer to importer
of empty capsule
products. However, there
is no official plan
for resume production
at a time
being.
Subject still maintains
good business growth
from imported products.
FINANCIAL INFORMATION
The capital was
registered at Bht. 1,000,000 divided
into 10,000 shares
of Bht. 100
each.
The capital was
increased later as
followings :
Bht. 30,000,000
on April 3,
1986
Bht. 70,000,000
on April 12,
1988
Bht. 90,000,000 on
June 17, 1998
Bht. 170,000,000 on
June 17, 2004
The latest registered
capital was increased
to Bht. 170,000,000 divided into 1,700,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30,
2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Capsugel Belgium BVBA Nationality: Belgian Address : Rijksweg
11, 2880 Bornem,
Belgium |
1,699,998 |
100.00 |
|
Capsugel FinanceCo S.a.r.L. Nationality: Luxembourg Address : 63
Rue de Rollinggergrund, L-2440,
Luxembourg |
1 |
- |
|
Capsugel FinanceCo II
S.a.r.L. Nationality: Luxembourg Address : 63
Rue de Rollinggergrund, L-2440,
Luxembourg |
1 |
- |
Total Shareholders : 3
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
3 |
1,700,000 |
100.00 |
|
Total |
3 |
1,700,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Vichien Thamtrakul
No. 3183
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, November
30, 2011 & 2010
were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Cash and Cash Equivalents |
123,855,467 |
358,052,619 |
785,394,623 |
|
Trade Accounts &
Notes Receivable |
252,677,961 |
200,533,141 |
320,737,423 |
|
Receivable from Person or Related Company |
- |
7,277,003 |
6,145,567 |
|
Advance Payment to
Person or Related Company |
152,428,500 |
154,550,000 |
- |
|
Inventories |
116,610,711 |
37,973,523 |
95,025,612 |
|
Refundable Value Added
Tax |
66,568,554 |
69,268,693 |
59,781,356 |
|
Other Current Assets
|
1,951,978 |
5,556,466 |
44,353,679 |
|
|
|
|
|
|
Total Current Assets
|
714,093,171 |
833,211,445 |
1,311,438,260 |
|
Fixed Assets |
49,963,958 |
41,043,425 |
562,187,414 |
|
Deposit |
1,003,618 |
158,618 |
158,618 |
|
Total Assets |
765,060,747 |
874,413,488 |
1,873,784,292 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Trade Accounts &
Other Payable |
645,588,613 |
234,848,846 |
136,088,650 |
|
Payable to Person or Related Company
|
- |
8,263,097 |
17,256,847 |
|
Accrued Expenses |
15,409,404 |
27,136,610 |
27,840,849 |
|
Accrued Income Tax |
- |
14,443,247 |
22,939,983 |
|
Advance Money from Insurance Company |
- |
154,550,000 |
- |
|
Other Current Liabilities |
11,611,340 |
6,025,375 |
4,964,655 |
|
|
|
|
|
|
Total Current Liabilities |
672,609,357 |
445,267,175 |
209,090,984 |
|
Employee Benefits Obligation |
23,900,757 |
52,235,150 |
43,880,670 |
|
Total Liabilities |
696,510,114 |
497,502,325 |
252,971,654 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,700,000 shares |
170,000,000 |
170,000,000 |
170,000,000 |
|
|
|
|
|
|
Capital Paid |
170,000,000 |
170,000,000 |
170,000,000 |
|
Retained Earning Appropriated for
Statutory Reserve
|
17,000,000 |
17,000,000 |
17,000,000 |
|
Unappropriated |
[118,449,367] |
189,911,163 |
1,433,812,638 |
|
Total Shareholders' Equity |
68,550,633 |
376,911,163 |
1,620,812,638 |
|
Total Liabilities &
Shareholders' Equity |
765,060,747 |
874,413,488 |
1,873,784,292 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
Dec.
31, 2012 |
Nov.
30, 2011 |
Nov. 30,
2010 [Adjusted] |
|
|
|
|
|
|
Sales |
744,654,219 |
937,652,429 |
1,084,281,200 |
|
Compensation Insurance Income |
599,910,000 |
- |
- |
|
Gain on Exchange
Rate |
8,111,189 |
12,242,287 |
- |
|
Other Income |
10,776,341 |
13,024,201 |
6,064,232 |
|
Total Revenues |
1,363,451,749 |
962,918,917 |
1,090,345,432 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
733,238,076 |
575,414,626 |
683,092,265 |
|
Selling Expenses |
105,117,455 |
142,958,828 |
120,201,701 |
|
Administrative Expenses |
171,301,812 |
73,781,712 |
54,421,752 |
|
Loss from Flood |
- |
690,298,662 |
- |
|
Loss on Exchange Rate |
- |
- |
33,704,018 |
|
Total Expenses |
1,009,657,343 |
1,482,453,828 |
891,419,736 |
|
|
|
|
|
|
Profit/[Loss] before Finance Cost & Income Tax |
353,794,406 |
[519,534,911] |
198,925,696 |
|
Finance Cost |
[1,347,767] |
[3,204,143] |
[3,166,157] |
|
|
|
|
|
|
Profit/[Loss] before Income Tax |
352,446,639 |
[522,739,054] |
195,759,539 |
|
Income Tax |
- |
[50,162,421] |
[60,260,740] |
|
|
|
|
|
|
Net Profit / [Loss] |
352,446,639 |
[572,901,475] |
135,498,799 |
BALANCE SHEET [BAHT]
For the One
Month Period Ended
December 31, 2011 was.
ASSETS
|
Current Assets |
2011 |
|
Cash and Cash Equivalents |
355,035,952 |
|
Trade Accounts &
Other Receivable |
153,160,976 |
|
Advance Payment |
154,550,000 |
|
Inventories |
39,316,682 |
|
Refundable Value Added
Tax |
68,366,101 |
|
Other Current Assets
|
3,007,100 |
|
Total Current Assets
|
773,436,811 |
|
Fixed Assets |
40,979,162 |
|
Deposit |
78,618 |
|
Total Assets |
814,494,591 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2011 |
|
|
|
|
Trade Accounts &
Other Payable |
209,872,797 |
|
Accrued Expenses |
20,671,240 |
|
Accrued Income Tax |
14,443,247 |
|
Money Received from
Insurance Company |
154,550,000 |
|
Other Current Liabilities |
6,418,189 |
|
|
|
|
Total Current Liabilities |
405,955,473 |
|
Employee Benefits Obligation |
52,435,124 |
|
Total Liabilities |
458,390,597 |
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,700,000 shares |
170,000,000 |
|
|
|
|
Capital Paid |
170,000,000 |
|
Retained Earning Appropriated for
Statutory Reserve
|
17,000,000 |
|
Unappropriated |
169,103,994 |
|
Total Shareholders' Equity |
356,103,994 |
|
Total Liabilities &
Shareholders' Equity |
814,494,591 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
Dec. 1,
2011- Dec.
31, 2011 |
|
|
|
|
Sales |
32,781,344 |
|
Gain on Exchange
Rate |
65,032 |
|
Other Income |
355,893 |
|
Total Revenues |
33,202,269 |
|
Expenses |
|
|
|
|
|
Cost of Goods
Sold |
33,248,854 |
|
Selling Expenses |
4,729,711 |
|
Administrative Expenses |
11,891,889 |
|
Loss from Flood |
3,962,665 |
|
Total Expenses |
53,833,119 |
|
|
|
|
Profit/[Loss] before Finance Cost & |
[20,630,850] |
|
Finance Cost |
[176,319] |
|
|
|
|
Net Profit / [Loss] |
[20,807,169] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.06 |
1.87 |
6.27 |
|
QUICK RATIO |
TIMES |
0.79 |
1.62 |
5.32 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
26.91 |
22.85 |
1.93 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.76 |
1.07 |
0.58 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
58.05 |
24.09 |
50.78 |
|
INVENTORY TURNOVER |
TIMES |
6.29 |
15.15 |
7.19 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
68.59 |
78.06 |
107.97 |
|
RECEIVABLES TURNOVER |
TIMES |
5.32 |
4.68 |
3.38 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
321.37 |
148.97 |
72.72 |
|
CASH CONVERSION CYCLE |
DAYS |
(194.73) |
(46.82) |
86.03 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
54.53 |
61.37 |
63.00 |
|
SELLING & ADMINISTRATION |
% |
20.56 |
23.12 |
16.10 |
|
INTEREST |
% |
0.10 |
0.34 |
0.29 |
|
GROSS PROFIT MARGIN |
% |
46.87 |
41.33 |
37.56 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
26.31 |
(55.41) |
18.35 |
|
NET PROFIT MARGIN |
% |
26.21 |
(61.10) |
12.50 |
|
RETURN ON EQUITY |
% |
514.14 |
(152.00) |
8.36 |
|
RETURN ON ASSET |
% |
46.07 |
(65.52) |
7.23 |
|
EARNING PER SHARE |
BAHT |
207.32 |
(337.00) |
79.71 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.91 |
0.57 |
0.14 |
|
DEBT TO EQUITY RATIO |
TIMES |
10.16 |
1.32 |
0.16 |
|
TIME INTEREST EARNED |
TIMES |
262.50 |
(162.14) |
62.83 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
43.40 |
(13.52) |
|
|
OPERATING PROFIT |
% |
(168.10) |
(361.17) |
|
|
NET PROFIT |
% |
161.52 |
(522.81) |
|
|
FIXED ASSETS |
% |
21.73 |
(92.70) |
|
|
TOTAL ASSETS |
% |
(12.51) |
(53.33) |
|
ANNUAL GROWTH : SATISFACTORY
An annual sales growth is 43.4%. Turnover has increased from THB
937,652,429.00 in 2011 to THB 1,344,564,219.00 in 2012. While net profit has
increased from THB -572,901,475.00 in 2011 to THB 352,446,639.00 in 2012. And
total assets has decreased from THB 874,413,488.00 in 2011 to THB
765,060,747.00 in 2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
46.87 |
Impressive |
Industrial Average |
20.10 |
|
Net Profit Margin |
26.21 |
Impressive |
Industrial Average |
5.09 |
|
Return on Assets |
46.07 |
Impressive |
Industrial Average |
9.40 |
|
Return on Equity |
514.14 |
Impressive |
Industrial Average |
20.66 |
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 46.87%. When
compared with the industry average, the ratio of the company was higher,
indicated that company was more profitable than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company’s figure is 26.21%,
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 46.07%, 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 514.14%, higher figure when compared with those of its average competitors
in the same industry, indicated that business was an efficient profit in a dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.06 |
Acceptable |
Industrial Average |
1.49 |
|
Quick Ratio |
0.79 |
|
|
|
|
Cash Conversion Cycle |
(194.73) |
|
|
|
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 1.06 times in 2012, decreased from 1.87 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 0.79 times in 2012,
decreased from 1.62 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 -195 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.91 |
Acceptable |
Industrial Average |
0.52 |
|
Debt to Equity Ratio |
10.16 |
Risky |
Industrial Average |
1.15 |
|
Times Interest Earned |
262.50 |
Impressive |
Industrial Average |
1.56 |
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 262.51 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 0.91 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 Uptrend
Times Interest Earned Downtrend
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
26.91 |
Impressive |
Industrial Average |
0.37 |
|
Total Assets Turnover |
1.76 |
Satisfactory |
Industrial Average |
1.86 |
|
Inventory Conversion Period |
58.05 |
|
|
|
|
Inventory Turnover |
6.29 |
Satisfactory |
Industrial Average |
6.38 |
|
Receivables Conversion Period |
68.59 |
|
|
|
|
Receivables Turnover |
5.32 |
Impressive |
Industrial Average |
3.41 |
|
Payables Conversion Period |
321.37 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.32 and 4.68 in
2012 and 2011 respectively. This ratio measures the efficiency of the company in
managing its trade debtors to generate revenue. A lower ratio may indicate over
extension and collection problems. Conversely, a higher ratio may indicate an
overtly stringent policy. In this case, the company's A/R ratio in 2012
increased from 2011. This would suggest the company had good performance in the
management of its debt collections.
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has increased from 24 days at the
end of 2011 to 58 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 15.15 times in year 2011 to 6.29
times in year 2012.
The company's Total Asset Turnover is calculated as 1.76 times and 1.07
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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.70 |
|
UK Pound |
1 |
Rs.91.14 |
|
Euro |
1 |
Rs.77.98 |
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.