MIRA INFORM REPORT
|
Report Date : |
15.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
GLOBAL CONNECTIONS PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
13/1 Moo 2, Kingkaew Road, T. Rachateva, A. Bangplee, Samutprakarn 10540 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
27.09.1994 |
|
|
|
|
Com. Reg. No.: |
0107548000153 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Importing and
distributing plastic, petrochemical and
additive which are
used in petrochemical and
plastic transformation process. |
|
|
|
|
No. of Employees : |
115 |
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 crisis 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 and address
GLOBAL CONNECTIONS
PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 13/1
MOO 2, KINGKAEW
ROAD,
T. RACHATEVA,
A. BANGPLEE,
SAMUTPRAKARN 10540,
THAILAND
TELEPHONE : [66] 2763-7921,
2763-7999, 2763-7949
FAX :
[66] 2763-7949,
2312-4880-1
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1994
REGISTRATION
NO. : 0107548000153 [Former
: 0105537114941]
TAX
ID NO. : 3011480366
CAPITAL REGISTERED : BHT. 200,000,000
CAPITAL PAID-UP : BHT.
200,000,000
SHAREHOLDER’S PROPORTION : -
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. VEERA KWANLOETCHIT,
THAI
PRESIDENT
NO.
OF STAFF : 115
LINES
OF BUSINESS : PLASTIC, PETROCHEMICAL
AND ADDITIVE
MATERIALS
IMPORTER AND
DISTRIBUTOR
CORPORATE
PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on September 27, 1994 originally
as a private
limited company under the
registered name “Global
Connections Co., Ltd.” by
Thai group. On
March 17, 2005,
its status was
converted to a
public limited company
under the name
GLOBAL CONNECTIONS PUBLIC
COMPANY LIMITED, then
was listed on
the Stock Exchange
of Thailand [SET],
under symbol name “GC”
on December 6,
2005. Its business
objective is to
distribute wide range
of plastic, petrochemical
and additive materials
for industrial users.
It currently employs 115
staff.
The subject’s registered
address is 13/1
Moo 2, Kingkaew Road, T. Rachateva,
A. Bangplee, Samutprakarn 10540,
and this is
the subject’s current
operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Pisit Leeahtam |
|
Thai |
62 |
|
Mr. Somchai Kulimakin : Chairman |
[x] |
Thai |
56 |
|
Mr. Sumruay Tichachol |
[x] |
Thai |
56 |
|
Mr. Bhiya Jriyasetapong |
[x] |
Thai |
53 |
|
Mr. Virah Mavichak |
|
Thai |
70 |
|
Mr. Aikachai Sirijuntanan |
[x] |
Thai |
49 |
|
Mr. Suchart Suphayak |
|
Thai |
56 |
|
Mrs. Chawalee Pongpatirochna |
|
Thai |
78 |
AUTHORIZED PERSON
Any two of
the mentioned directors
[x] can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Veera Kwanloetchit is the President.
He is Thai
nationality.
Mr. Sumruay Tichachol is
the Executive Vice
President, Department of
Sales and Marketing
1.
He is Thai
nationality with the
age of 56
years old.
Mr. Aikachai Sirijuntanan
is
the Executive Vice
President, Department of
Sales and Marketing
2.
He is Thai
nationality with the
age of 49
years old.
Mr. Bhiya Jriyasetapong is
the Executive Vice
President, Department of
Sales and Marketing
3.
He is Thai
nationality with the
age of 53
years old.
Mr. Siri Thirawattanawong is
the Executive Vice
President, Department of
Administration and Operation.
He is Thai
nationality.
Mrs. Pravishya Hansakul
is the Vice
President, Department of
Accounting and Finance.
She is
Thai nationality.
BUSINESS
OPERATIONS
The subject
is engaged in
importing and distributing
plastic, petrochemical and
additive which are
used in petrochemical
and plastic transformation process.
PURCHASE
The products are
purchased from suppliers
both domestic and
overseas with over
50 companies, most
of the products
are imported from
Netherlands, Japan, Republic
of China, U.S.A.,
Singapore and Australia,
the remaining is
purchased from local
suppliers.
MAJOR
SUPPLIERS
IRPC
Public Company Limited : Thailand
PTT
Polymer Marketing Co.,
Ltd. : Thailand
Bangkok
Synthetics Co., Ltd. : Thailand
Akzo
Nobel N.A. : Netherlands
Chisso
Corporation : U.S.A.
Fuji
Chemical Industries Ltd. : Japan
Rio
Tinto Minerals Asia
Pte. Ltd. :
Singapore
Chevron
Phillips Chemical Company : U.S.A.
Nanocor
Inc. : U.S.A.
Ciba
Specialty Chemical [Singapore]
Pte. Ltd . : Singapore
Milliken
Chemical Inc. : U.S.A.
DIC
International Chemical Pte. Ltd. : Singapore
Zhiyi
Specialty Chemicals Co.,
Ltd. : Republic
of China
Dalian
Richon Chem Co.,
Ltd. : Republic
of China
SCG
Plastic Group : Thailand
Eastman
Chemical Company : U.S.A.
Chi
Mei Corporation : Republic
of China
BASF
[Thai] Ltd. : Thailand
Timcal
Ltd. : Thailand
SALES
100% of the
products is sold
locally to wholesalers,
manufacturers and end-users.
REVENUE STRUCTURE
[Unit: Million Baht]
|
|
2012 |
2011 |
||
|
|
Million baht |
% |
Million baht |
% |
|
Product |
|
|
|
|
|
Commodity Polymer |
2,041 |
55 |
2,416 |
64 |
|
Specialty & Engineering
Polymer |
1,632 |
44 |
1,357 |
36 |
|
Specialty Chemical |
27 |
1 |
13 |
- |
|
Total Sale Revenue |
3,700 |
100 |
3,786 |
100 |
|
|
|
|
|
|
|
Other Income |
10 |
- |
7 |
- |
|
Total Revenue |
3,710 |
100 |
3,793 |
100 |
|
|
|
|
|
|
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
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
The
Siam Commercial Bank
Public Co., Ltd.
Kasikornbank
Public Co., Ltd.
Krung
Thai Bank Public
Co., Ltd.
EMPLOYMENT
The
subject currently employs
115 staff.
LOCATION DETAILS
The
premise is owned for
administrative office at
the heading address.
Premise is located
in industrial area.
COMMENT
The effect of
global economic crisis
in the previous years had an adverse
impact on the
entire economy as
well as the
aromatic and chemical
industry in early
2012. On recognition
to the difficult
period, the company’s
management closely monitored
the situation through
production plans. Affected
by the wave
of economic slow
down, the company
rapidly adopted immediate
actions, in addition,
the company had
put more emphasis
on improving its
liquidity better working
capital management as
well as maintaining
a sound financial base
and continuously expanding its customer base, therefore,
the company ended
the year 2012
with impressive results.
FINANCIAL
INFORMATION
The
capital was registered at Bht. 2,000,000 divided
into 20,000 shares
of Bht. 100
each with fully
paid.
The
capital was increased
later as follows:
Bht. 100,000,000
on October
16, 2003
Bht. 155,000,000
on December
27, 2004
Bht. 200,000,000
on March
17, 2005
Bht. 260,000,000
on April
12, 2012
On
April 19, 2013,
the registered capital
was decreased to Bht.
200,000,000 divided into
200,000,000 shares of
Bht. 1 each with
fully paid.
MAIN
SHAREHOLDERS : [as
at August 23,
2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Somchai Kulimakin Nationality: Thai Address : 48/10
Moo 4, Boromratchonnee Rd.,
Chimplee, Talingchan, Bangkok |
44,499,800 |
22.25 |
|
Mr. Sumruay Tichachol Nationality: Thai Address : 109
Soi Nawathanee 2,
Kannayao,
Kannayao, Bangkok |
27,125,000 |
13.56 |
|
Mr. Aikachai Sirijuntanan Nationality: Thai Address : 59/49
Moo 4, Soi 28,
Chalermprakiat R.9 Rd., Nongbon,
Prawet, Bangkok |
27,125,000 |
13.56 |
|
Mr. Bhiya Jriyasetapong Nationality: Thai Address : 13/1
Moo 2, Kingkaew
Rd., Rajatheva,
Bangplee, Samutprakarn |
26,125,000 |
13.06 |
|
Mr. Somkiat Terdtultaweedej Nationality: Thai Address : 889
Sathupradit 57 Rd.,
Bangpongpang,
Yannawa, Bangkok |
9,200,000 |
4.60 |
|
Mr. Siri Thirawattanawong Nationality: Thai Address : 99/196
Moo 6, Ramindra
Rd., Kannayao,
Kannayao, Bangkok |
8,226,000 |
4.11 |
|
Mr. Monthon Kruesuwan Nationality: Thai Address : - |
6,300,000 |
3.15 |
|
Other Shareholders |
51,399,200 |
25.71 |
Total Shareholders :
1,087
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Thipawan Nananuwat No.
3459
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 |
42,462,585 |
41,387,393 |
26,394,464 |
|
Trade Accounts & Other Receivable |
481,259,793 |
567,145,463 |
508,672,440 |
|
Inventories |
452,202,112 |
358,539,091 |
325,083,537 |
|
Other Current Assets
|
7,011,447 |
2,967,537 |
6,001,854 |
|
|
|
|
|
|
Total Current Assets
|
982,935,937 |
970,039,484 |
866,152,295 |
|
Investment Property
|
4,774,059 |
5,283,382 |
5,791,314 |
|
Fixed Assets |
131,571,471 |
136,868,893 |
145,772,646 |
|
Other Non-current Assets |
6,140,176 |
203,095 |
186,000 |
|
Total Assets |
1,125,421,643 |
1,112,394,854 |
1,017,902,255 |
LIABILITIES
& SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Short-term Loan From Financial Institutions |
505,000,000 |
466,414,343 |
350,000,000 |
|
Trade Accounts & Other Payable
|
194,410,616 |
226,032,220 |
219,102,844 |
|
Current Portion of
Liabilities under Financial Lease Agreements |
2,238,363 |
2,080,496 |
2,962,881 |
|
Accrued Income Tax |
8,352,393 |
10,712,290 |
19,113,881 |
|
Other Current Liabilities |
1,409,202 |
1,660,285 |
2,179,717 |
|
|
|
|
|
|
Total Current Liabilities |
711,410,574 |
706,899,634 |
593,359,323 |
|
Liabilities under Financial Lease Agreements, Net |
3,801,712 |
3,037,461 |
5,117,957 |
|
Reserve for Employee Benefits
|
10,728,610 |
14,624,510 |
- |
|
Total Liabilities |
725,940,896 |
724,561,605 |
598,477,280 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1
par value Authorized &
issued share capital
260,000,000 shares in 2012,
200,000,000 shares in 2011 & 2010 |
260,000,000 |
200,000,000 |
200,000,000 |
|
|
|
|
|
|
Capital Paid |
200,000,000 |
200,000,000 |
200,000,000 |
|
Premium on Share Capital |
56,034,035 |
56,034,035 |
56,034,035 |
|
Retained Earnings: Appropriated for Statutory Reserve |
24,000,000 |
20,000,000 |
20,000,000 |
|
Unappropriated |
119,446,712 |
111,799,214 |
143,390,940 |
|
Total Shareholders' Equity |
399,480,747 |
387,833,249 |
419,424,975 |
|
Total Liabilities &
Shareholders' Equity |
1,125,421,643 |
1,112,394,854 |
1,017,902,255 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
3,699,903,811 |
3,786,146,215 |
3,661,838,078 |
|
Other Income |
10,557,824 |
6,704,007 |
16,464,881 |
|
Total Revenues |
3,710,461,635 |
3,792,850,222 |
3,678,302,959 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
3,464,516,106 |
3,533,183,132 |
3,392,392,925 |
|
Selling Expenses |
26,547,030 |
27,000,074 |
21,851,622 |
|
Administrative Expenses |
100,234,082 |
103,854,531 |
91,844,176 |
|
Total Expenses |
3,591,297,218 |
3,664,037,737 |
3,506,088,723 |
|
|
|
|
|
|
Profit before Financial
Expenses & Income
Tax |
119,164,417 |
128,812,485 |
172,214,236 |
|
Financial Expenses |
[19,404,431] |
[13,110,868] |
[6,840,823] |
|
Profit before Income Tax |
99,759,986 |
115,701,617 |
165,373,413 |
|
Income Tax |
[22,112,488] |
[35,268,833] |
[41,093,261] |
|
|
|
|
|
|
Net Profit / [Loss] |
77,647,498 |
80,432,784 |
124,280,152 |
BALANCE
SHEET [BAHT]
The latest financial figures published
as at September
30, 2013 was:
ASSETS
[Thousand Baht]
[Unaudited]
|
Current Assets |
2013 |
|
|
|
|
Cash and Cash Equivalents |
17,405 |
|
Trade Accounts & Other Receivable |
615,736 |
|
Inventories |
568,228 |
|
Other Current Assets
|
14,033 |
|
|
|
|
Total Current Assets
|
1,215,402 |
|
Property, Plant and
Equipment |
126,537 |
|
Intangible Assets |
5,257 |
|
Deferred Tax Assets |
3,890 |
|
Other Non-current Assets |
193 |
|
Total Assets |
1,351,279 |
LIABILITIES
& SHAREHOLDERS’ EQUITY [BAHT]
[Thousand Baht]
[Unaudited]
|
Current
Liabilities |
2013 |
|
|
|
|
Short-term Loan from Financial
Institutions |
655,000 |
|
Trade Accounts & Other Payable |
280,219 |
|
Current Portion of
Liabilities under Financial
Lease Agreements |
1,780 |
|
Accrued Income Tax |
4,406 |
|
Other Current Liabilities |
4,653 |
|
|
|
|
Total Current Liabilities |
946,058 |
|
Liabilities under Financial Lease Agreements, Net of Current Portion |
2,551 |
|
Provision for Long-term Employee
Benefits |
11,452 |
|
Total Liabilities |
960,061 |
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
Share capital : Baht 1
par value authorized, issued
and fully paid share
capital 200,000,000 shares |
200,000 |
|
|
|
|
Capital Paid |
200,000 |
|
Premium on Share Capital |
56,034 |
|
Retained Earnings: Appropriated for Statutory Reserve |
24,000 |
|
Unappropriated |
111,184 |
|
Total Shareholders' Equity |
391,218 |
|
Total Liabilities &
Shareholders' Equity |
1,351,279 |
PROFIT &
LOSS ACCOUNT
For the nine-month period
ended September 30,
2013.
[Thousand Baht]
[Unaudited]
|
Revenue |
2013 |
|
|
|
|
Sales Income |
2,378,849 |
|
Other Income |
11,802 |
|
Total Revenues |
2,390,651 |
|
Expenses |
|
|
|
|
|
Cost of Goods
Sold |
2,207,566 |
|
Selling Expenses |
19,362 |
|
Administrative Expenses |
73,633 |
|
Total Expenses |
2,300,561 |
|
|
|
|
Profit before Financial
Cost and Income
Tax |
90,090 |
|
Financial Cost |
[12,648] |
|
Profit before Income Tax |
77,442 |
|
Income Tax |
[15,450] |
|
|
|
|
Net Profit / [Loss] |
61,992 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.38 |
1.37 |
1.46 |
|
QUICK RATIO |
TIMES |
0.74 |
0.86 |
0.90 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
28.12 |
27.66 |
25.12 |
|
TOTAL ASSETS TURNOVER |
TIMES |
3.29 |
3.40 |
3.60 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
47.64 |
37.04 |
34.98 |
|
INVENTORY TURNOVER |
TIMES |
7.66 |
9.85 |
10.44 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
47.48 |
54.68 |
50.70 |
|
RECEIVABLES TURNOVER |
TIMES |
7.69 |
6.68 |
7.20 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
20.48 |
23.35 |
23.57 |
|
CASH CONVERSION CYCLE |
DAYS |
74.64 |
68.36 |
62.11 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
93.64 |
93.32 |
92.64 |
|
SELLING & ADMINISTRATION |
% |
3.43 |
3.46 |
3.10 |
|
INTEREST |
% |
0.52 |
0.35 |
0.19 |
|
GROSS PROFIT MARGIN |
% |
6.65 |
6.86 |
7.81 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.22 |
3.40 |
4.70 |
|
NET PROFIT MARGIN |
% |
2.10 |
2.12 |
3.39 |
|
RETURN ON EQUITY |
% |
19.44 |
20.74 |
29.63 |
|
RETURN ON ASSET |
% |
6.90 |
7.23 |
12.21 |
|
EARNING PER SHARE |
BAHT |
0.39 |
0.40 |
0.62 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.65 |
0.65 |
0.59 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.82 |
1.87 |
1.43 |
|
TIME INTEREST EARNED |
TIMES |
6.14 |
9.82 |
25.17 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(2.28) |
3.39 |
|
|
OPERATING PROFIT |
% |
(7.49) |
(25.20) |
|
|
NET PROFIT |
% |
(3.46) |
(35.28) |
|
|
FIXED ASSETS |
% |
(3.87) |
(6.11) |
|
|
TOTAL ASSETS |
% |
1.17 |
9.28 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -2.28%. Turnover has decreased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
6.65 |
Deteriorated |
Industrial Average |
27.90 |
|
Net Profit Margin |
2.10 |
Satisfactory |
Industrial
Average |
2.46 |
|
Return on Assets |
6.90 |
Impressive |
Industrial
Average |
4.64 |
|
Return on Equity |
19.44 |
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 6.65%. 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 2.1%. 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. Return on Assets ratio is
6.9%, 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 19.44%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profit in a dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Downtrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.38 |
Impressive |
Industrial
Average |
1.37 |
|
Quick Ratio |
0.74 |
|
|
|
|
Cash Conversion Cycle |
74.64 |
|
|
|
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 1.38 times in 2012, increased from 1.37 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 0.74 times in 2012,
decreased from 0.86 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 75 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.65 |
Acceptable |
Industrial
Average |
0.50 |
|
Debt to Equity Ratio |
1.82 |
Risky |
Industrial
Average |
0.94 |
|
Times Interest Earned |
6.14 |
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 6.15 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 0.65 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
28.12 |
Impressive |
Industrial
Average |
1.55 |
|
Total Assets Turnover |
3.29 |
Impressive |
Industrial
Average |
1.83 |
|
Inventory Conversion Period |
47.64 |
|
|
|
|
Inventory Turnover |
7.66 |
Satisfactory |
Industrial
Average |
8.85 |
|
Receivables Conversion Period |
47.48 |
|
|
|
|
Receivables Turnover |
7.69 |
Impressive |
Industrial
Average |
3.74 |
|
Payables Conversion Period |
20.48 |
|
|
|
The company's Account Receivable Ratio is calculated as 7.69 and
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 37 days at the
end of 2011 to 48 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 9.85 times in year 2011 to 7.66 times
in year 2012.
The company's Total Asset Turnover is calculated as 3.29 times and 3.4
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.63.06 |
|
|
1 |
Rs.101.15 |
|
Euro |
1 |
Rs.84.95 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.