MIRA INFORM REPORT
|
Report Date : |
30.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
HUNTSMAN
[THAILAND] LIMITED |
|
|
|
|
Registered Office : |
899 Moo 4, Bangpoo Industrial Estate, Soi 6, Sukhumvit Road, Praeksa, Muang, Samutprakarn 10260 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
26.07.1999 |
|
|
|
|
Com. Reg. No.: |
0115542003825 [Former: SOR POR.
9031] |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, distributor and exporter of industrial chemicals |
|
|
|
|
No. of Employees : |
300 |
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
HUNTSMAN
[THAILAND] LIMITED
SUMMARY
BUSINESS
ADDRESS : 899
MOO 4, BANGPOO
INDUSTRIAL ESTATE,
SOI 6,
SUKHUMVIT ROAD, PRAEKSA,
MUANG, SAMUTPRAKARN
10260
TELEPHONE : [66] 2709-4466
FAX :
[66] 2709-4351,
2709-4360
E-MAIL
ADDRESS : surapol_chatanantavej@huntsman.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1999
REGISTRATION
NO. : 0115542003825 [Former: SOR
POR. 9031]
TAX
ID NO. : 3271167984
CAPITAL REGISTERED : BHT. 6,000,000
CAPITAL PAID-UP : BHT.
6,000,000
SHAREHOLDER’S PROPORTION : FOREIGN :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SURAPOL CHATANANTAVEJ, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 300
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 July 26,
1999 as a
private limited company
under the originally
registered name “Huntsman
ICI [Thailand] Limited”,
by foreign groups.
On November 3, 2000, the subject’s
name was changed to HUNTSMAN [THAILAND]
LIMITED. It currently
employs approximate 300 staff.
Its
business objective is
to manufacture wide
range of industrial
chemicals for domestic
and international markets.
In the beginning of
2006, the subject
took over textile
chemical division and
all facilities from Ciba
Specialty Chemical [Thailand]
Ltd.
The
subject’s registered address
is 899 Moo
4, Bangpoo Industrial
Estate, Soi 6, Sukhumvit Rd.,
Praeksa, Muang, Samutprakarn
10260, and this
is the subject’s
current operation address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Peter Railey Huntsman |
[x] [+] |
American |
50 |
|
Mr. Surapol Chatanantavej |
[x] [-] |
Thai |
50 |
|
Mr. Santachai Rattanyupong |
[x] [-] |
Thai |
59 |
|
Ms. Pang Ai Chee |
[+] |
Singaporean |
58 |
AUTHORIZED PERSON
- One of
the mentioned directors [x]
can sign on
behalf of the
subject with
company’s affixed.
- One of
the mentioned directors [-]
can jointly sign
with anyone of
the mentioned directors
[+] on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Surapol Chatanantavej is the Managing
Director.
He is Thai
nationality with the
age of 50
years old.
Mr. Weeyoong Lee
is the Technical
Operation Manager [Samutsakorn Factory].
He is
Australian nationality.
Mr. Saravuth Kaewsom is
the Operation Manager.
He is Thai
nationality.
Ms. Wanphen Darnsiriwattanakul is
the Human Resources
& Administration Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The
subject is engaged
in manufacturing wide
range of industrial
chemicals mainly
for
construction, appliance, footwear,
textile, plastic, aviation,
construction, technology,
agriculture,
healthcare, detergent, personal
care, furniture, packaging,
paint, coating
and
automotive industries, under
its own brand
“HUNTSMAN”.
PURCHASE
Raw material
and chemicals are
purchased from both domestic
and international suppliers
such as United
States of America,
Germany, France, Japan, Taiwan, Singapore,
India and Republic
of China.
MAJOR SUPPLIER
Huntsman International
LLC. : U.S.A.
SALES
80% of the products is sold locally by wholesale to dealers, manufacturers and
end-users.
EXPORT
20% of the products is exported to Vietnam, Malaysia, Singapore, Indonesia, Philippines, Japan, Korea, India, Hong Kong, Republic of China and Taiwan.
MAJOR CUSTOMERS
Summit Footwear Co.,
Ltd. : Thailand
Thai Summit Group
of companies : Thailand
Thai Taffeta Co.,
Ltd. : Thailand
Erawan Textile co.,
Ltd,. : Thailand
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
Kasikornbank Public Co.,
Ltd.
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately
300 office staff
and factory workers.
LOCATION
DETAILS
The
premise is owned
for administrative office and
factory I at the
heading address. Premise
is located in
industrial area.
Factory II
[Textile Chemical Division]
is located at
90/2 Moo 4,
Bangpla Rd., Bangkhoh,
Muang, Samutsakorn 74000.
Branches:
·
44/1
Ladkrabang Industrial Estate,
Moo 4, Chalongkrung
Rd., Lamplatiw, Ladkrabang,
Bangkok.
·
90/2
Moo 4, Bangpla,
Bankoh, Muang, Samutsakorn
10280
·
19 Moo 5,
Sethakij 1 Rd.,
Thamai, Krathumban, Samutsakorn
province
·
90/122
Moo 4, Bangpla,
Bankoh, Muang, Samutsakorn
10280
·
119/1 Moo
1, Klongmai, Sampran,
Nakornpathom province
·
222 Moo
6, Suksawad Rd.,
Naiklongbangplakod,
Phrasamutjadee, Samutprakarn
·
90/123 Moo
4, Bangpla, Bankoh, Muang,
Samutsakorn province
COMMENT
Subject is a manufacturer, distributor
and exporter of industrial chemicals. The products
have been served to industrial
users. Subject reported excellent sales in
the past several years. Its manufacture
has ultimately advance
production adhering to international
standards.
Overall
industrial conditions have
subsequently improved, as
well as demand of
chemicals has significantly
increased.
FINANCIAL INFORMATION
The
capital was registered at Bht.
4,000,000 divided into
40,000 shares of
Bht. 100 each.
On
August 20, 1999,
the capital was
increased to Bht. 6,000,000 divided
into 60,000 shares
of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
June 19, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Huntsman International L.L.C. Nationality: American Address :
500 Huntsman Way,
Salt Lake City, Utah, U. S. A. |
30,590 |
50.98 |
|
Huntsman Investment [Netherlands] BV. Nationality: Dutch Address : 3221
Rotterdam, Netherlands |
29,400 |
49.00 |
|
Huntsman Polyurethane Fund
I L.L.C. Nationality: American
Address : 500
Huntsman Way, Salt Lake
City, Utah, U. S. A. |
2 |
|
|
Huntsman Polyurethane Fund
II L.L.C. Nationality: American Address : 500
Huntsman Way, Salt Lake
City, Utah, U. S. A. |
2 |
|
|
Huntsman Polyurethane Fund
III L.L.C. Nationality: American Address : 500
Huntsman Way, Salt Lake
City, Utah, U. S. A. |
2 |
= 0.02 |
|
Huntsman Polyurethane Fund
IV L.L.C. Nationality: American Address : 500
Huntsman Way, Salt Lake
City, Utah, U. S. A. |
2 |
|
|
Huntsman Polyurethane Venture
I L.L.C. Nationality: American Address : 500
Huntsman Way, Salt Lake
City, Utah, U. S. A. |
2 |
|
Total Shareholders : 7
Share Structure [as
at June 19,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
7 |
60,000 |
100.00 |
|
Total |
7 |
60,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Pranee Pholngam No.
4987
Note
The 2012 financial
statement has yet
been submitted to
the Commercial Registration
Department during investigation.
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash and Cash Equivalents |
135,671,491 |
99,464,027 |
79,115,993 |
|
Trade Accounts & Other Receivable |
779,768,153 |
730,905,369 |
917,160,013 |
|
Receivable from Related Company
|
- |
- |
1,949,526 |
|
Inventories |
646,548,210 |
1,068,743,702 |
713,959,426 |
|
Receivable from Sale
Department |
191,095,657 |
159,187,545 |
116,415,935 |
|
Deferred Refundable Input
Tax |
16,994,075 |
344,891 |
3,098,322 |
|
Other Current Assets
|
13,793,388 |
9,062,146 |
5,370,603 |
|
|
|
|
|
|
Total Current Assets
|
1,783,870,974 |
2,067,707,680 |
1,837,069,818 |
|
Fixed Assets |
1,094,249,102 |
865,779,412 |
795,428,554 |
|
Other Non-current Assets |
50,923,783 |
50,178,937 |
49,385,337 |
|
Total Assets |
2,929,043,859 |
2,983,666,029 |
2,681,883,709 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
658,972,750 |
719,307,998 |
497,139,588 |
|
Related Company Payable |
- |
- |
160,500,918 |
|
Accrued Expenses |
44,748,660 |
56,656,249 |
70,397,750 |
|
Accrued Income Tax |
15,047,369 |
75,461,056 |
95,312,311 |
|
Other Current Liabilities |
19,095,303 |
36,057,728 |
30,194,342 |
|
|
|
|
|
|
Total Current Liabilities |
737,864,082 |
887,483,031 |
853,544,909 |
|
Long-term Loan from Related Company |
671,166,627 |
671,166,627 |
671,166,627 |
|
Estimated Liabilities for
Employee Benefits |
15,797,794 |
- |
- |
|
Total Liabilities |
1,424,828,503 |
1,558,649,658 |
1,524,711,536 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100 par
value authorized, issued
and fully paid share
capital 60,000 shares |
6,000,000 |
6,000,000 |
6,000,000 |
|
|
|
|
|
|
Capital Paid |
6,000,000 |
6,000,000 |
6,000,000 |
|
Premium on Share
Capital |
185,395,200 |
185,395,200 |
185,395,200 |
|
Retained Earning Appropriated for
Statutory Reserve |
9,846,357 |
9,846,357 |
9,846,357 |
|
Unappropriated |
1,302,973,799 |
1,223,774,814 |
955,930,616 |
|
Total Shareholders' Equity |
1,504,215,356 |
1,425,016,371 |
1,157,172,173 |
|
Total Liabilities &
Shareholders' Equity |
2,929,043,859 |
2,983,666,029 |
2,681,883,709 |
PROFIT & LOSS ACCOUNT
|
Sale |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales |
4,290,277,180 |
4,485,653,203 |
3,922,233,367 |
|
Other Income |
14,873,918 |
16,929,174 |
13,559,303 |
|
Total Sales |
4,305,151,098 |
4,502,582,377 |
3,935,792,670 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
3,669,979,961 |
3,538,618,942 |
3,044,464,718 |
|
Selling Expenses |
57,818,459 |
66,426,798 |
62,435,754 |
|
Administrative Expenses |
387,625,187 |
455,248,362 |
380,540,926 |
|
Loss on Exchange
Rate |
6,310,474 |
220,493 |
8,313,051 |
|
Total Expenses |
4,121,734,081 |
4,060,514,595 |
3,495,754,449 |
|
|
|
|
|
|
Profit before Financial
Cost & Income Tax |
183,417,017 |
442,067,782 |
440,038,221 |
|
Financial Cost |
[33,950,850] |
[31,962,876] |
[29,101,837] |
|
Profit before Income Tax |
149,466,167 |
410,104,906 |
410,936,384 |
|
Income Tax |
[55,054,401] |
[137,411,900] |
[133,757,751] |
|
|
|
|
|
|
Net Profit / [Loss] |
94,411,766 |
272,693,006 |
277,178,633 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.42 |
2.33 |
2.15 |
|
QUICK RATIO |
TIMES |
1.24 |
0.94 |
1.17 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.92 |
5.18 |
4.93 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.46 |
1.50 |
1.46 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
64.30 |
110.24 |
85.60 |
|
INVENTORY TURNOVER |
TIMES |
5.68 |
3.31 |
4.26 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
66.34 |
59.47 |
85.35 |
|
RECEIVABLES TURNOVER |
TIMES |
5.50 |
6.14 |
4.28 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
65.54 |
74.19 |
59.60 |
|
CASH CONVERSION CYCLE |
DAYS |
65.10 |
95.52 |
111.34 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
85.54 |
78.89 |
77.62 |
|
SELLING & ADMINISTRATION |
% |
10.38 |
11.63 |
11.29 |
|
INTEREST |
% |
0.79 |
0.71 |
0.74 |
|
GROSS PROFIT MARGIN |
% |
14.80 |
21.49 |
22.73 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.28 |
9.86 |
11.22 |
|
NET PROFIT MARGIN |
% |
2.20 |
6.08 |
7.07 |
|
RETURN ON EQUITY |
% |
6.28 |
19.14 |
23.95 |
|
RETURN ON ASSET |
% |
3.22 |
9.14 |
10.34 |
|
EARNING PER SHARE |
BAHT |
1,573.53 |
4,544.88 |
4,619.64 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.49 |
0.52 |
0.57 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.95 |
1.09 |
1.32 |
|
TIME INTEREST EARNED |
TIMES |
5.40 |
13.83 |
15.12 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(4.36) |
14.36 |
|
|
OPERATING PROFIT |
% |
(58.51) |
0.46 |
|
|
NET PROFIT |
% |
(65.38) |
(1.62) |
|
|
FIXED ASSETS |
% |
26.39 |
8.84 |
|
|
TOTAL ASSETS |
% |
(1.83) |
11.25 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -4.36%. Turnover has decreased from THB
4,485,653,203.00 in 2010 to THB 4,290,277,180.00 in 2011. While net profit has
decreased from THB 272,693,006.00 in 2010 to THB 94,411,766.00 in 2011. And
total assets has decreased from THB 2,983,666,029.00 in 2010 to THB
2,929,043,859.00 in 2011.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
14.80 |
Deteriorated |
Industrial Average |
47.30 |
|
Net Profit Margin |
2.20 |
Deteriorated |
Industrial Average |
4.90 |
|
Return on Assets |
3.22 |
Satisfactory |
Industrial Average |
3.91 |
|
Return on Equity |
6.28 |
Satisfactory |
Industrial Average |
6.67 |
Gross Profit Margin used to assess a firm's financial health by revealing
the proportion of money left over from sales after accounting for the cost of
goods sold. Gross profit margin serves as the source for paying additional
expenses and future savings. The company's figure is 14.8%. 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 2.2%. When
compared with the industry average, the ratio of the company was lower.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. When compared with the
industry average, its was lower, the company's figure is 3.22%.
Return on Equity indicates how profitable a company is by comparing its
net income to its average shareholders' equity, ROE measures how much the
shareholders earned for their investment in the company. When compared with the
industry average, it was lower, the company's figure is 6.28%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
2.42 |
Impressive |
Industrial Average |
1.62 |
|
Quick Ratio |
1.24 |
|
|
|
|
Cash Conversion Cycle |
65.10 |
|
|
|
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 2.42 times in 2011, increased from 2.33 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 1.24 times in 2011,
increased from 0.94 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 66 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.49 |
Acceptable |
Industrial Average |
0.41 |
|
Debt to Equity Ratio |
0.95 |
Impressive |
Industrial Average |
0.71 |
|
Times Interest Earned |
5.40 |
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 5.41 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 0.49 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.92 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.46 |
Impressive |
Industrial Average |
0.80 |
|
Inventory Conversion Period |
64.30 |
|
|
|
|
Inventory Turnover |
5.68 |
Impressive |
Industrial Average |
5.08 |
|
Receivables Conversion Period |
66.34 |
|
|
|
|
Receivables Turnover |
5.50 |
Impressive |
Industrial Average |
1.93 |
|
Payables Conversion Period |
65.54 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.50 and 6.14 in
2011 and 2010 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate sale. A lower ratio may indicate over
extension and collection problems. Conversely, a higher ratio may indicate an
overtly stringent policy. In this case, the company's A/R ratio in 2011
decreased from 2010. 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 110 days at the
end of 2010 to 64 days at the end of 2011. This represents a positive trend.
And Inventory turnover has increased from 3.31 times in year 2010 to 5.68 times
in year 2011.
The company's Total Asset Turnover is calculated as 1.46 times and 1.5
times in 2011 and 2010 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.24 |
|
UK Pound |
1 |
Rs.84.54 |
|
Euro |
1 |
Rs.72.32 |
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.