MIRA INFORM REPORT
|
Report Date : |
14.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
PACIFIC HEALTHCARE [THAILAND] CO., LTD. |
|
|
|
|
Registered Office : |
29th Floor, Supalai Grand Tower, Rama 3 Road, Chongnonsi, Yannawa, Bangkok 10120 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
07.02.1961 |
|
|
|
|
Com. Reg. No.: |
0105504000253 [Former :
32/2504] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer & Distributor of Healthcares
and Related Products |
|
|
|
|
No. of Employees : |
250 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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
PACIFIC HEALTHCARE [THAILAND] CO., LTD.
SUMMARY
BUSINESS ADDRESS : 29th FLOOR,
SUPALAI GRAND TOWER,
RAMA
3 ROAD, CHONGNONSI,
YANNAWA,
BANGKOK 10120
TELEPHONE : [66]
2881-2488
FAX : [66] 2683-3373
E-MAIL ADDRESS : phc@phc.co.th
REGISTRATION ADDRESS : SAME AS
BUSINESS ADDRESS
ESTABLISHED : 1961
REGISTRATION NO. : 0105504000253 [Former : 32/2504]
TAX ID NO. : 3101032161
CAPITAL REGISTERED : BHT.
23,000,000
CAPITAL PAID-UP : BHT.
23,000,000
SHAREHOLDER’S PROPORTION : FOREIGN :
99.98%
THAI
: 0.02%
FISCALYEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PRASERT VAIYAVATJAMAI, THAI
CHIEF EXECUTIVE
OFFICER
NO. OF STAFF : 250
LINES OF BUSINESS
: HEALTHCARES AND
RELATED PRODUCTS
IMPORTER & 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 February
7, 1961 as
a private limited
company under the
registered name PACIFIC
INVESTMENT [THAILAND] CO.,
LTD. by Thai and foreign investors,
in order to
import and distribute
pharmaceutical products,
hospital supplies, specialty food,
pharmaceutical ingredients and
consumers health products
to local market.
The subject represents
Baxter Healthcare International, CB Fleet, Minntech, Newport
and Osmonics.
On June 14, 1984 the subject’s
name was changed to PACIFIC HEALTHCARE
[THAILAND] CO., LTD.
The subject is currently one of the
largest importers, distributors
and marketers of
healthcare and related
products in Thailand.
It currently has approximately 250
employees.
The subject’s registered
address was initially
located at 229/1
South Sathorn Rd.,
Yannawa, Sathorn, Bangkok
10120,
On July 16, 2007, subject’s registered address was
relocated to 29th
Flr., Supalai Grand Tower,
1011 Rama 3 Rd.,
Chongnonsi, Yannawa, Bangkok
10120, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms. Katherine Clara
Koczyn |
|
American |
49 |
|
Ms. Nawarat Wongrasmeethong |
[-] |
Thai |
64 |
|
Mr. Cyrille Frederic Buhrman
|
[x] : Chairman |
Thai |
40 |
|
Mr. Prasert Vaiyavatjamai |
[x] |
Thai |
42 |
|
Mr. Phaiboon Leelapanumas |
[-] |
Thai |
53 |
|
Mr. Steven Lee Wile |
[-] |
American |
60 |
|
Mrs. Jisima Samphan-apai |
[-] |
Thai |
59 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can sign or two
of the directors
[-] can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Prasert Vaiyavatjamai is
the Chief Executive
Officer.
He is Thai
nationality with the
age of 42
years old.
Ms. Sivaporn Narathip is
the Business Development
Manager.
She is Thai
nationality.
Mr. Phaiboon Leelapanumas is
the Senior Operation
Manager.
He is Thai
nationality with the
age of 53
years old.
Ms. Pantipa Thiemboonkit is
the Human Resources
Manager.
She is Thai
nationality.
Mrs. Sujitra Srangsakul is
the Purchasing Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in importing,
distributing and marketing variety
of healthcare and
related products, which
can be divided
into 4 categories
as follows:
- Consumer Health Products
- Hospital Supplies
and Equipments
- Pharmaceutical Products
& Pharmaceutical Ingredients
- Specialty Food
Subject’s distribution network
covers the entire
geography of Thailand,
and specializes in the
following channels: clinic, hospitals, industrial
clients, modern trade
& pharmacies.
The subject has
3 warehouse facilities
in Greater Bangkok
and has its
own delivery services
in the Greater
Bangkok and Central
Thailand areas. In
term of distribution,
it has made
great efforts to
modernize its services.
It is currently
a pioneer in
its field in
the largest private
hospital group offering
the following services:
customs clearing, electronic
data process and
reporting regulatory affairs.
MAJOR BRANDS
“ABBOTT”, “ANSELL”, “BAXTER”,
“BIONICHE”, “BIPHARMA”, “CB
FLEET”, “CHIESI”, “CLS
PHARMA”, “DAIRY GOAT”,
“DSM”, “FERRER”, “FERRING”,
“FOUNIER”, “GE OSMONICS”,
“GUERBET”, “BEAUFOUR - IPSEN”, “MINNTECH”,
“NEWPORT” and etc.
PURCHASE
80% of its
products is imported
from United States
America, Germany, Italy, France,
Japan, Israel, Sweden, Switzerland,
New Zealand, Australia,
United Kingdom, Netherlands,
Singapore, South Korea
and Malaysia, and
the remaining 20%
is purchased from
local suppliers.
The subject maintains
over 50 major
suppliers in overseas.
MAJOR SUPPLIERS
|
Ansell Healthcare Products
Inc. |
: United States of
America |
|
Baxter Healthcare International |
: United States of
America |
|
Laboratoire Guerbet |
: France |
|
Diagnostics Pasteur |
: France |
|
Laboratories Promedica |
: France |
|
Laboratories Dexo |
: France |
|
Laboratories Upsa |
: France |
|
Pierre Fabre Group |
: France |
|
Serono S.A. |
: Switzerland |
|
Eurodrug Laboratories BV. |
: Netherlands |
|
Abbott Laboratories Co.,
Ltd. |
: Thailand |
|
Asence Inc. |
: U.S.A. |
|
Bioniche Life Sciences
Inc. |
: U.S.A. |
|
Daewoong Pharmaceutical Co.,
Ltd. |
: South Korea |
|
Ipca Laboratories Ltd. |
- |
|
Dairy Goat Co-Operative [N.Z.]
Ltd. |
: New Zealand |
|
Ginsana SA. |
: France |
SALES [LOCAL]
100% of its
products is sold
locally to wholesalers, Thai Government
and manufacturers.
SUBSIDIARIES & AFFILIATED COMPANIES
Inter Pharma Care
Co., Ltd.
Business Type: Importer
& distributor of
pharmaceutical products
Vision Care Co.,
Ltd.
Business Type: Lasik center operator
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 30-60-90 days.
Local bills are
paid by cash
or on the credits
term of 30-60 days.
Imports are by
L/C at sight
or on the
credits term of
90-180 days or T/T.
BUSINESS TRANSACTION
In term of sales,
the products are
sold to customers by
cash and credit, with the
maximum credit given
at 90 days. The subject is found
to have late payment by some customers, but it has
not affected to its account
receivable.
BANKING
Standard Chartered Bank
[Thai] Public Co., Ltd.
[Head Office
: 90 North
Sathorn Rd., Bangrak,
Bangkok 10500]
Bangkok Bank Public
Co., Ltd.
[Sathorn Branch : 156/1 North
Sathorn Rd., Silom,
Bangrak, Bangkok 10500]
The Siam Commercial
Bank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
approximately 250 office
and sales staff.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in commercial
area.
Warehouse:
- 90 Moo
13, T. Bangpleeyai, A. Bangplee,
Samutprakarn 10540.
Branch office/ Showroom:
- 28th Floor,
Room 01, Supalai
Grand Tower, Rama
3 Rd., Chongnonsi,
Yannawa,
Bangkok 10120.
COMMENT
The subject has a strong marketing and management fundamental, it has
annual turnover of approximately USD 45 million. The company is solid and
reliable, with a well-established reputation and a quality of service that is
second to none. The subject offers a one
stop solution for high quality healthcare and related products companies
wishing to be the leading in Thai market.
It is currently the pioneer in
its field in terms of Electronic Data Interface (EDI) with the Bangkok General
Hospital group, The Thailand’s largest private hospital group, Customs
Clearing Electronic Data Processing and
Reporting Regulatory Affairs.
The subject is considered
a solid company
in the healthcare
industry in Thailand.
FINANCIAL INFORMATION
The capital was
registered at Bht.
1,000,000 with fully
paid.
The capital was
increased later as
followings:
Bht. 3,000,000
on October 2,
1968
Bht. 6,000,000
on May 15,
1973
Bht. 8,000,000
on February 7,
2005
Bht. 23,000,000 on
October 25, 2006
The latest registered
capital was increased
to Bht. 23,000,000 divided
into 23,000 shares
of Bht. 1,000
each with fully
paid.
THE SHAREHOLDERS LISTED WERE
[as at April
30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Marcle Holdings Limited
Nationality : B.V.I. Address : Road
Town, Tortola, British
Virgin Islands |
22,190 |
96.48 |
|
Ms. Katherine Clara Koczyn Nationality : American Address : 71/1
Wireless Rd., Lumpini,
Pathumwan, Bangkok 10330 |
800 |
3.48 |
|
Mr. Thuan Komkrich
Nationality : Thai Address : Komkrish
Farm, Sriracha, Cholburi |
2 |
|
|
Mr. Yodying Sophon
Nationality : Thai Address : 1-7
Boonsiri Rd., Phranakorn,
Bangkok 10100 |
2 |
|
|
Mr. George C.
Smith Nationality : American Address : 1/1 Soi Ruamrudee,
Wireless Rd.,
Lumpini, Pathumwan, Bangkok 10330 |
2 |
= 0.04 |
|
Mr. Charles W.
Biddle Nationality : American Address : 11
Sukhumvit 31 Rd.,
Klongton,
Prakanong, Bangkok 10110 |
2 |
|
|
Mr. T. V. D. Klashorst Nationality : Dutch Address : Hilversum,
De Netherlands |
2 |
|
Total Shareholders : 7
Share Structure
[as at
April 30, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
4 |
0.02 |
|
Foreign |
5 |
22,996 |
99.98 |
|
Total |
7 |
23,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT
NO.
Ms. Chantakarn Rojvanakarn No.
7692
BALANCE SHEET [BAHT]
The latest financial
figures published from
December 31, 2011,
2010 & 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash in hand
& at Bank
|
40,526,740 |
73,933,246 |
28,618,151 |
|
Short-Term Investment |
- |
4,000,000 |
10,816,461 |
|
Trade Accounts & Other Receivable |
573,316,952 |
549,231,242 |
423,217,407 |
|
Inventories |
269,997,371 |
192,781,284 |
260,748,720 |
|
Advanced Payment |
- |
- |
5,093,838 |
|
Short-term Loan to
Related Company |
- |
- |
800,000 |
|
Other Receivable |
- |
- |
21,625,523 |
|
Other Current Assets |
- |
- |
7,455,653 |
|
|
|
|
758,375,753 |
|
Total Current Assets
|
883,841,063 |
819,945,772 |
758,375,753 |
|
|
|
|
|
|
Other Long-term Investment |
67,867,763 |
63,363,897 |
62,851,236 |
|
Long-term Loan to
Related Company |
6,450,000 |
6,450,000 |
6,850,000 |
|
Receivable & Loan to Directors & Employees |
10,494 |
15,494 |
28,494 |
|
Fixed Assets
|
42,926,025 |
44,013,725 |
56,858,067 |
|
Intangible Assets |
1,559,851 |
336,031 |
727,241 |
|
Other Non-current Assets |
8,847,900 |
6,513,548 |
- |
|
Total Assets |
1,011,503,096 |
940,638,467 |
127,315,038 885,690,791 |
LIABILITIES &
SHAREHOLDERS' EQUITY
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
601,654,513 |
602,767,443 |
564,251,714 |
|
Current Portion of Financial
Lease Contract Liabilities
|
2,139,110 |
2,118,234 |
1,949,748 |
|
Current Portion of
Hire-purchase Payable |
1,392,893 |
1,318,721 |
247,330 |
|
Accrued Income Tax |
19,256,835 |
12,915,786 |
- |
|
Other Current Liabilities |
- |
- |
45,652,517 |
|
|
|
|
|
|
Total Current Liabilities |
624,443,351 |
619,120,184 |
612,101,309 |
|
|
|
|
|
|
Financial Lease Contract
Liabilities - Net of
Current Portion |
2,552,030 |
2,617,765 |
4,735,999 |
|
Hire-purchase Payable |
3,074,715 |
4,467,609 |
1,050,441 |
|
Total Liabilities |
630,070,096 |
626,205,558 |
617,887,749 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share Capital : Baht.
1,000 par value
Authorized, issued
and fully paid
share capital 23,000
shares |
23,000,000 |
23,000,000 |
23,000,000 |
|
|
|
|
|
|
Capital Paid |
23,000,000 |
23,000,000 |
23,000,000 |
|
Unappropriated |
358,433,000 |
291,432,909 |
244,803,042 |
|
Total Shareholders' Equity |
381,433,000 |
314,432,909 |
267,803,042 |
|
|
|
|
|
|
Total Liabilities & Shareholders' Equity |
1,011,503,096 |
940,638,467 |
885,690,791 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales |
1,477,275,064 |
1,417,475,691 |
1,315,871,939 |
|
Gain on Exchange
Rate |
15,340,481 |
73,906,027 |
22,580,976 |
|
Total Revenues |
1,492,615,545 |
1,491,381,718 |
1,338,452,915 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
881,329,452 |
944,170,458 |
811,552,448 |
|
Selling Expenses |
296,186,812 |
258,836,880 |
239,647,675 |
|
Administrative Expenses |
216,123,152 |
216,582,877 |
224,238,939 |
|
Total Expenses |
1,393,639,416 |
1,419,590,215 |
1,275,439,062 |
|
|
|
|
|
|
Profit/[Loss] before Financial
Cost Income Tax |
98,976,129 |
71,791,503 |
63,013,853 |
|
Financial Cost |
[610,112] |
[661,420] |
[935,478] |
|
Profit/[Loss] before Income
Tax |
98,366,017 |
71,130,083 |
62,078,375 |
|
Income Tax |
[31,365,926] |
[24,500,216] |
[24,230,603] |
|
Net Profit / [Loss] |
67,000,091 |
46,629,867 |
37,847,772 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.42 |
1.32 |
1.24 |
|
QUICK RATIO |
TIMES |
0.98 |
1.01 |
0.76 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
34.41 |
32.21 |
23.14 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.46 |
1.51 |
- |
|
INVENTORY CONVERSION PERIOD |
DAYS |
111.82 |
74.53 |
117.27 |
|
INVENTORY TURNOVER |
TIMES |
3.26 |
4.90 |
3.11 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
141.65 |
141.43 |
117.39 |
|
RECEIVABLES TURNOVER |
TIMES |
2.58 |
2.58 |
3.11 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
249.17 |
233.02 |
253.78 |
|
CASH CONVERSION CYCLE |
DAYS |
4.30 |
(17.07) |
(19.11) |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
59.66 |
66.61 |
61.67 |
|
SELLING & ADMINISTRATION |
% |
34.68 |
33.54 |
35.25 |
|
INTEREST |
% |
0.04 |
0.05 |
0.07 |
|
GROSS PROFIT MARGIN |
% |
41.38 |
38.60 |
40.04 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
6.70 |
5.06 |
4.79 |
|
NET PROFIT MARGIN |
% |
4.54 |
3.29 |
2.88 |
|
RETURN ON EQUITY |
% |
17.57 |
14.83 |
14.13 |
|
RETURN ON ASSET |
% |
6.62 |
4.96 |
- |
|
EARNING PER SHARE |
BAHT |
2,913.05 |
2,027.39 |
1,645.56 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.62 |
0.67 |
- |
|
DEBT TO EQUITY RATIO |
TIMES |
1.65 |
1.99 |
2.31 |
|
TIME INTEREST EARNED |
TIMES |
162.23 |
108.54 |
67.36 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
4.22 |
7.72 |
|
|
OPERATING PROFIT |
% |
37.87 |
13.93 |
|
|
NET PROFIT |
% |
43.68 |
23.20 |
|
|
FIXED ASSETS |
% |
(2.47) |
(22.59) |
|
|
TOTAL ASSETS |
% |
7.53 |
- |
|
ANNUAL GROWTH : IMPRESSIVE
An annual sales growth is 4.22%. Turnover has increased from THB
1,417,475,691.00 in 2010 to THB 1,477,275,064.00 in 2011. While net profit has
increased from THB 46,629,867.00 in 2010 to THB 67,000,091.00 in 2011. And
total assets has increased from THB 940,638,467.00 in 2010 to THB
1,011,503,096.00 in 2011.
PROFITABILITY : IMPRESSIVE
PROFITABILITY RATIO
|
Gross Profit Margin |
41.38 |
Deteriorated |
Industrial Average |
123.92 |
|
Net Profit Margin |
4.54 |
Impressive |
Industrial Average |
3.43 |
|
Return on Assets |
6.62 |
Impressive |
Industrial Average |
6.51 |
|
Return on Equity |
17.57 |
Impressive |
Industrial Average |
15.20 |
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 41.38%. 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. Net Profit Margin ratio is 4.54%,
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
6.62%, 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 17.57%, 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 : SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.42 |
Satisfactory |
Industrial Average |
1.63 |
|
Quick Ratio |
0.98 |
|
|
|
|
Cash Conversion Cycle |
4.30 |
|
|
|
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 1.42 times in 2011, increase from 1.32 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 0.98 times in 2011,
decrease from 1.01 times, by excluding inventory, the company may have problems
meeting current liabilities.
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 5 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.62 |
Acceptable |
Industrial Average |
0.56 |
|
Debt to Equity Ratio |
1.65 |
Risky |
Industrial Average |
1.29 |
|
Times Interest Earned |
162.23 |
Impressive |
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 162.23 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 0.62 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
ACTIVI7TY RATIO
|
Fixed Assets Turnover |
34.41 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.46 |
Satisfactory |
Industrial Average |
1.90 |
|
Inventory Conversion Period |
111.82 |
|
|
|
|
Inventory Turnover |
3.26 |
Acceptable |
Industrial Average |
4.36 |
|
Receivables Conversion Period |
141.65 |
|
|
|
|
Receivables Turnover |
2.58 |
Satisfactory |
Industrial Average |
3.31 |
|
Payables Conversion Period |
249.17 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.58 and 2.58 in
2011 and 2010 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 2011
is the
same as in 2010.
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 75 days at the
end of 2010 to 112 days at the end of 2011. This represents a negative trend.
And Inventory turnover has decreased from 4.9 times in year 2010 to 3.26 times
in year 2011.
The company's Total Asset Turnover is calculated as 1.46 times and 1.51
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 Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.91 |
|
|
1 |
Rs.84.44 |
|
Euro |
1 |
Rs.71.31 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.