MIRA INFORM REPORT
|
Report Date : |
10.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
DIACHROME
CHEMICALS LIMITED |
|
|
|
|
Formerly Known As : |
THAI-OCCIDENTIAL CHEMICAL
LTD |
|
|
|
|
Registered Office : |
1st Floor, Zone
B, Srifuengfung Building, 1016 Rama
4 Road, Silom,
Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
11.02.1983 |
|
|
|
|
Com. Reg. No.: |
0105526005941 [Former : 594/2526] |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
manufacturer of
wide range of
industrial chemicals, specialized in
Basic Chromium Sulphate
with various grades for
tanning and leather
production industry |
|
|
|
|
No. of Employees : |
60 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
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
DIACHROME CHEMICALS LIMITED
[FORMER :
THAI-OCCIDENTIAL CHEMICAL LTD.]
SUMMARY
BUSINESS
ADDRESS : 1st FLOOR,
ZONE B, SRIFUENGFUNG
BUILDING,
` 1016 RAMA
4 ROAD, SILOM,
BANGRAK,
BANGKOK 10500, THAILAND
TELEPHONE : [66] 2237-4935-8,
2237-4942
FAX : [66] 2237-4943
E-MAIL
ADDRESS : diachrom@samart.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1983
REGISTRATION
NO. : 0105526005941 [Former : 594/2526]
TAX
ID NO. : 3101221282
CAPITAL REGISTERED : BHT. 48,000,000
CAPITAL PAID-UP : BHT.
48,000,000
SHAREHOLDER’S PROPORTION : THAI :
99.88%
CANADIAN :
0.12%
FISCAL
YEAR CLOSING DATE : DECEMBER
31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
CHAINARONG SRIFUENGFUNG, THAI
GENERAL MANAGER
NO.
OF STAFF : 60
LINES
OF BUSINESS : TANNING
& LEATHER CHEMICAL
MANUFACTURER, DISTRIBUTOR
& EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was
established on February
11, 1983 as
a private limited
company under the
registered name Green Lotus
Co., Ltd. by
Srifuengfung family and
other foreign partners,
in order to
manufacture industrial chemicals
for both local
and export markets.
It currently employs
approximately 60 staff.
The subject’s name
was changed as
the followings:
-
Thai-Diamond Shamrock
Chrom Ltd. on
October 24, 1985
- Thai-Occidential Chemical Ltd. on February
20, 1987
-
DIACHROME CHEMICALS
LIMITED on February
7, 2002
The subject’s registered
address was initially
located at Cathay
House Building, 8
North Sathorn Rd.,
Silom, Bangrak, Bangkok
10500.
In November 2002,
the registered address
was relocated to 1st Flr., Zone
B, Srifuengfung Bldg.,
1016 Rama 4
Rd., Silom, Bangrak,
Bangkok 10500, and
this is the
company’s current operation
address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Chaikiri Srifuengfung |
[x] |
Thai |
69 |
|
Ms. Kalayanee Srifuengfung |
[x] |
Thai |
57 |
|
Mr. Chainarong Srifuengfung |
[x] |
Thai |
68 |
|
Mr. Sombat Panitchewa |
|
Thai |
78 |
|
Mr. Chone Soponpanich |
|
Thai |
39 |
|
r. Vitoon Techatassanasoontorn |
[x] |
Thai |
73 |
|
Mr. Arshrat Mohamed
Ali Fancy |
|
Canadian |
67 |
AUTHORIZED PERSON
Two of the above
directors [x] can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Chainarong Srifuengfung is
the General Manager.
He is Thai
nationality with the
age of 68
years old.
Mr. Anukul Sakuldumrongvanich is
the Factory Manager.
He is Thai
nationality.
Mr. Thananant Bhandunanviriyakul is
the Marketing &
Sales Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
wide range of
industrial chemicals, specialized
in Basic Chromium
Sulphate with various
grades for tanning and
leather production industry.
The products are as follows:
·
Sodium
Bicarbonate
·
Diachrome K
·
Diachrome R
·
Diachrom T
·
Diachrome NV-42
·
Diachrome L
·
Diachrome SB
PURCHASE
90% of raw
material is purchased
from local suppliers
and agents, the
remaining 10% is
imported from Taiwan,
Republic of China,
India, Hong Kong
and Germany.
MAJOR SUPPLIERS
Witcorp Co., Ltd. : Thailand
SALES
90% of the
products is sold
locally by wholesale
to dealers and
tanning & leather
manufacturers, the remaining
10% is exported
to Singapore, Republic
of China,
Japan, Vietnam and
Taiwan.
MAJOR CUSTOMERS
Thai Rung Rueng
Tannery Co., Ltd. : Thailand
Sri Sinn Fah
Tannery Co., Ltd. : 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.
SUBSIDIARY AND AFFILIATED
COMPANY
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
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 on negotiated
term.
Exports are against
L/C at sight
or on negotiated
term & T/T.
BUSINESS TRANSACTION
The products are
sold mainly by
credit, with the
maximum credit given
at 30-60 days.
The subject is
not found to
have problems on
its accounts receivable.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok 10500]
EMPLOYMENT
The subject employs
approximately 60 staff
[office, sales staff
& factory workers].
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Factory & warehouse
are located at
386 Bangpoo Industrial
Estate, Patana Rd.,
T. Praeksa, A. Muang, Samutprakarn
10270. Tel.: [66] 2709-3840, Fax: [66] 2324-0453.
COMMENT
Demand of tanning
and leather chemicals is growing in
line with the growth and development
of tanning and
leather production industries
supplying the products
to automobile and furniture
production which seemed to fall
in the past
two years. Subject’s
sales have been
decreased significantly which
resulted in the
subject’s net loss
for two consecutive
years. However, the
subject reported an
increase in number
of orders from
an expansion of
new and existing
customers this year,
particularly on the
third quarter of
2013 and expects
to continue throughout
the end of
this year. Generally, its
business is still
promising.
FINANCIAL INFORMATION
The capital was
registered at Bht.
100,000 divided into
1,000 shares of
Bht. 100 each.
The capital was
increased later as
follows:
Bht.
24,000,000 on November
14, 1985
Bht.
48,000,000 on May
31, 1990
The latest registered
capital was increased
to Bht. 48,000,000
divided into 480,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 27, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Sri Kiri Enterprise
Co., Ltd. Nationality : Thai Address : 90/9
Sukhumvit 31 Rd.,
Klongtonnua,
Wattana, Bangkok 10110 |
141,315 |
29.44 |
|
Sripeenong Co., Ltd. Nationality : Thai Address : 88 Sukhumvit 31 Rd.,
Klongtonnua,
Wattana, Bangkok 10110 |
131,771 |
27.45 |
|
Unistrech Co., Ltd. Nationality : Thai Address : 8/23,
8/35-38 North Sathorn
Rd., Silom,
Bangrak, Bangkok |
114,600 |
23.88 |
|
Pong Erawan Co.,
Ltd. Nationality : Thai Address : 356
Narathiwas Ratchanakarin Rd.,
Chongnonsi, Yannawa, Bangkok
10500 |
23,529 |
4.90 |
|
Mr. Chaikiri Srifuengfung Nationality : Thai Address : 90/9
Sukhumvit 31 Rd.,
Klongtonnua,
Wattana, Bangkok 10110 |
20,000 |
4.17 |
|
Pailuck Co., Ltd. Nationality : Thai Address : 87/3
Sukhumvit 54 Rd.,
Bangchak,
Prakanong, Bangkok |
12,000 |
2.50 |
|
Mr. Chainarin Srifuengfung Nationality : Thai Address : 90/8
Sukhumvit 31 Rd.,
Klongtonnua,
Wattana, Bangkok 10110 |
10,000 |
2.08 |
|
Mr. Chainarong Srifuengfung Nationality : Thai Address : 88/2
Sukhumvit 31 Rd.,
Klongtonnua,
Wattana, Bangkok 10110 |
10,000 |
2.08 |
|
Mr. Chalermchai Somboonpakorn Nationality : Thai Address : 53/1
Sukhumvit 2 Rd.,
Klongtoey, Bangkok |
5,843 |
1.22 |
|
Mr. Apichai Somboonpakorn Nationality : Thai Address : 53/1
Sukhumvit 2 Rd.,
Klongtoey, Bangkok |
5,842 |
1.22 |
|
Mrs. Warin Somboonpakorn Nationality : Thai Address : 53/1
Sukhumvit 2 Rd.,
Klongtoey, Bangkok |
4,000 |
0.83 |
|
Mr. Arshrat Fancy Nationality : Canadian Address : 25th Floor,
215/92 Asoke Condominium,
Sukhumvit Rd., Klongtoeynua, Wattana,
Bangkok |
600 |
0.12 |
|
Mr. Vitoon Techatassanasoontorn Nationality : Thai Address : 191/39
Sukhumvit 31 Rd.,
Klongtonnua,
Wattana, Bangkok 10110 |
500 |
0.11 |
Total Shareholders : 13
Share Structure [as
at April 27,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
12 |
479,400 |
99.88 |
|
Foreign - Canadian |
1 |
600 |
0.12 |
|
Total |
13 |
480,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Kannikar Tanthai
No. 2876
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash in hand
& at Bank
|
14,510,829.60 |
22,851,603.43 |
29,223,602.33 |
|
Trade Account & Other
Receivable |
37,358,061.00 |
37,057,606.19 |
40,002,022.57 |
|
Inventories |
61,183,885.88 |
68,020,177.29 |
87,340,402.48 |
|
Other Current Assets
|
2,744,089.47 |
2,272,171.12 |
2,809,107.95 |
|
Total Current Assets
|
115,796,865.95 |
130,201,558.03 |
159,375,135.33 |
|
Other Long-term Investment |
200,000.00 |
200,000.00 |
200,000.00 |
|
Fixed Assets |
21,257,841.95 |
21,630,309.58 |
20,112,326.41 |
|
Other Non-current Assets |
344,021.68 |
338,337.69 |
331,370.70 |
|
Total Assets |
137,598,729.58 |
152,370,205.21 |
180,018,832.44 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term
Loan from Financial Institutions |
26,479,135.95 |
9,324,295.55 |
3,022,378.55 |
|
Trade Accounts & Other
Payable |
6,924,438.04 |
20,446,335.22 |
28,699,967.57 |
|
Other Current Liabilities |
178,918.63 |
104,965.01 |
595,176.55 |
|
Total Current Liabilities |
33,582,492.62 |
29,875,595.78 |
32,317,522.67 |
|
Employee Benefits Obligation |
8,652,786.00 |
8,657,927.00 |
- |
|
Total Liabilities |
42,235,278.62 |
38,533,522.78 |
32,317,522.67 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 480,000 shares |
48,000,000.00 |
48,000,000.00 |
48,000,000.00 |
|
Capital Paid |
48,000,000.00 |
48,000,000.00 |
48,000,000.00 |
|
Retained Earning Appropriated for Statutory Reserve |
4,800,000.00 |
4,800,000.00 |
4,800,000.00 |
|
Unappropriated |
42,563,450.96 |
61,036,682.43 |
94,901,309.77 |
|
Total Shareholders' Equity |
95,363,450.96 |
113,836,682.43 |
147,701,309.77 |
|
Total Liabilities &
Shareholders' Equity |
137,598,729.58 |
152,370,205.21 |
180,018,832.44 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
172,502,185.28 |
196,379,089.75 |
271,116,472.00 |
|
Other Income |
1,495,826.84 |
1,313,575.22 |
675,267.96 |
|
Total Revenues |
173,998,012.12 |
197,692,664.97 |
271,791,739.96 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
170,073,317.46 |
186,586,853.80 |
224,974,933.22 |
|
Selling Expenses |
8,002,467.83 |
8,037,333.16 |
14,154,009.45 |
|
Administrative Expenses |
13,836,792.07 |
13,588,249.10 |
15,375,373.19 |
|
Total Expenses |
191,912,577.36 |
208,212,436.06 |
254,504,315.86 |
|
Profit before Financial Cost |
[17,914,565.24] |
[10,519,771.09] |
17,287,424.10 |
|
Financial Cost |
[558,666.23] |
[572,610.25] |
- |
|
Net Profit / [Loss] |
[18,473,231.47] |
[11,092,381.34] |
17,287,424.10 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
3.45 |
4.36 |
4.93 |
|
QUICK RATIO |
TIMES |
1.54 |
2.01 |
2.14 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
8.11 |
9.08 |
13.48 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.25 |
1.29 |
1.51 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
131.31 |
133.06 |
141.70 |
|
INVENTORY TURNOVER |
TIMES |
2.78 |
2.74 |
2.58 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
79.05 |
68.88 |
53.85 |
|
RECEIVABLES TURNOVER |
TIMES |
4.62 |
5.30 |
6.78 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
14.86 |
40.00 |
46.56 |
|
CASH CONVERSION CYCLE |
DAYS |
195.49 |
161.94 |
148.99 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
98.59 |
95.01 |
82.98 |
|
SELLING & ADMINISTRATION |
% |
12.66 |
11.01 |
10.89 |
|
INTEREST |
% |
0.32 |
0.29 |
- |
|
GROSS PROFIT MARGIN |
% |
2.28 |
5.66 |
17.27 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(10.39) |
(5.36) |
6.38 |
|
NET PROFIT MARGIN |
% |
(10.71) |
(5.65) |
6.38 |
|
RETURN ON EQUITY |
% |
(19.37) |
(9.74) |
11.70 |
|
RETURN ON ASSET |
% |
(13.43) |
(7.28) |
9.60 |
|
EARNING PER SHARE |
BAHT |
(38.49) |
(23.11) |
36.02 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.31 |
0.25 |
0.18 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.44 |
0.34 |
0.22 |
|
TIME INTEREST EARNED |
TIMES |
(32.07) |
(18.37) |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(12.16) |
(27.57) |
|
|
OPERATING PROFIT |
% |
70.29 |
(160.85) |
|
|
NET PROFIT |
% |
(66.54) |
(164.16) |
|
|
FIXED ASSETS |
% |
(1.72) |
7.55 |
|
|
TOTAL ASSETS |
% |
(9.69) |
(15.36) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -12.16%. Turnover has decreased from THB
196,379,089.75 in 2011 to THB 172,502,185.28 in 2012. While net profit has
decreased from THB -11,092,381.34 in 2011 to THB -18,473,231.47 in 2012. And
total assets has decreased from THB 152,370,205.21 in 2011 to THB
137,598,729.58 in 2012.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
2.28 |
Deteriorated |
Industrial
Average |
40.70 |
|
Net Profit Margin |
(10.71) |
Deteriorated |
Industrial
Average |
5.11 |
|
Return on Assets |
(13.43) |
Deteriorated |
Industrial
Average |
4.22 |
|
Return on Equity |
(19.37) |
Deteriorated |
Industrial
Average |
7.30 |
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 2.28%. 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 -10.71%.
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, it was lower, the company's figure is -13.43%.
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 -19.37%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Downtrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
3.45 |
Impressive |
Industrial
Average |
1.72 |
|
Quick Ratio |
1.54 |
|
|
|
|
Cash Conversion Cycle |
195.49 |
|
|
|
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 3.45 times in 2012, decrease from 4.36 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 1.54 times in 2012,
decrease from 2.01 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 196 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
SATISFACTORY
LEVERAGE RATIO
|
Debt Ratio |
0.31 |
Impressive |
Industrial
Average |
0.39 |
|
Debt to Equity Ratio |
0.44 |
Impressive |
Industrial
Average |
0.65 |
|
Times Interest Earned |
(32.07) |
Risky |
Industrial
Average |
2.13 |
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 -32.07 lower than 1, so the company is not generating
enough cash from EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.31 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
8.11 |
Impressive |
Industrial
Average |
0.38 |
|
Total Assets Turnover |
1.25 |
Impressive |
Industrial
Average |
0.82 |
|
Inventory Conversion Period |
131.31 |
|
|
|
|
Inventory Turnover |
2.78 |
Acceptable |
Industrial
Average |
5.15 |
|
Receivables Conversion Period |
79.05 |
|
|
|
|
Receivables Turnover |
4.62 |
Impressive |
Industrial
Average |
2.38 |
|
Payables Conversion Period |
14.86 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.62 and 5.30 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
decreased from 2011. 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 133 days at the
end of 2011 to 131 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 2.74 times in year 2011 to 2.78 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.25 times and 1.29
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 Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.92 |
|
UK Pound |
1 |
Rs.99.45 |
|
Euro |
1 |
Rs.83.92 |
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.