MIRA
INFORM REPORT
|
Report Date : |
04.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
AKZO
NOBEL PAINTS [THAILAND]
LIMITED |
|
|
|
|
Formerly Known As : |
ICI PAINTS
[THAILAND] LIMITED |
|
|
|
|
Registered Office : |
34/5 Moo 1, Chaengwattana Road, T. Klongklua, A. Pakkred, Nonthaburi 11120 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
13.12.1966 |
|
|
|
|
Com. Reg. No.: |
0105509004699 [Former :
582/2509] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
manufacturer
of paints and
coating products such as decorative paint,
architectural paint, performance
coating, packaging coating,
wood and metal
paints, automotive and
aerospace coating. |
|
|
|
|
No. of Employees : |
2,700 |
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
AKZO NOBEL PAINTS
[THAILAND] LIMITED
[FORMER :
ICI PAINTS [THAILAND]
LIMITED]
SUMMARY
BUSINESS
ADDRESS : 34/5
MOO 1, CHAENGWATTANA ROAD,
T.
KLONGKLUA, A. PAKKRED,
NONTHABURI 11120
TELEPHONE : [66] 2572-8888
FAX :
[66] 2572-8889
E-MAIL
ADDRESS : info@akzonobel.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1966
REGISTRATION
NO. : 0105509004699 [Former : 582/2509]
TAX
ID NO. : 3191000750
CAPITAL REGISTERED : BHT. 15,000,000
CAPITAL PAID-UP : BHT.
10,000,000
SHAREHOLDER’S PROPORTION : DUTCH :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. JEREMY PAUL
ROWE, BRITISH
MANAGING DIRECTOR
NO.
OF STAFF : 2,700
LINES
OF BUSINESS : PAINTS AND
COATING PRODUCTS
MANUFACTURER AND
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 December
13, 1966 as a private
limited company under
the registered name “National Lake
[Thailand] Limited” by
a joint venture
between The East
Asiatic [Thailand] Public
Co., Ltd. and Imperial
Chemical Industries Plc.,
England, in order
to manufacture industrial
paints.
The
subject’s name was
changed as follows:
-
I.C.I
[Thailand] Limited on January
9, 1970
-
I.C.I.
1996 [Thailand] Limited on December
27, 1996
-
I.C.I.
Paints [Thailand] Limited on August
31, 1999
-
Akzo
Nobel Paints [Thailand]
Limited on November
14, 2008
At present, the
major shareholders are
Akzo Nobel Coatings
International B.V., Netherlands,
which is holding
99.99% of the
total shares. It
currently employs 2,700
staff.
The subject
is the Thailand’s first
paints manufacturer receiving
ISO 9001, ISO
14001 certifications together
with the attainment of TIS 18001 certification for
Health and Safety
Management System.
The
subject’s registered address
is 34/5 Moo 1,
T. Klongklua, A. Pakkred, Nonthaburi
11120, and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Jeremy Paul Rowe |
|
British |
47 |
|
Mr. Supoj Sapsawaipol |
|
Thai |
61 |
|
Ms. Pranee Lert-ananchaikul |
|
Thai |
47 |
|
Mr. Ng Yaing Joo |
|
Malaysian |
45 |
|
Mr. Joseph Antony Mcfadries |
|
Australian |
52 |
|
Mr. Sutthikorn Suthampitak |
|
Thai |
42 |
|
Mr. Neil Galloway |
|
New
Zealander |
58 |
|
Mr. Methee Viriyavaree |
|
Thai |
47 |
|
Mr. Apichai Pholkosol |
|
Thai |
42 |
|
Mr. Anawat Cakaranont |
|
Thai |
49 |
|
Mr. Surapol Sanansilp |
|
Thai |
49 |
|
Mr. Suwit Trakarnsrisunan |
|
Thai |
39 |
|
Mr. Charnyuth Kusalarak |
|
Thai |
45 |
|
Ms. Natthamanee Aromrat |
|
Thai |
32 |
|
Ms. Alister Douglas Home |
|
Australian |
45 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Jeremy Paul Rowe
is the Managing
Director.
He is British
nationality with the
age of 47
years old.
Mr. Pichet Boonyarith is
the Factory Manager.
He is Thai
nationality.
Mr. Apichai Pholkosol is
the Sales Director.
He is Thai
nationality with the
age of 42
years old.
Mr. Andrew Smith is
the Technical Manager.
He is British
nationality.
Mrs. Una Ton is
the Marketing Director.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
of paints and
coating products which
are divided into
6 main products:
decorative paint, architectural
paint, performance coating,
packaging coating, wood and
metal paints, automotive
and aerospace coating,
under various brands
“ICI DEVOE”, “ICI
DULUX”, “ICI SUPERCOAT”,
“ICI CUPRINOL”, “FARCO”
and “MAXILITE”.
PURCHASE
80% of raw
material are purchased
from local suppliers
and agents, the
remaining 20% is
imported from United
Kingdom, Australia, Republic
of China, India,
Malaysia, Netherlands and
Japan.
MAJOR
SUPPLIERS
Louis T.
Leonowens [Thailand] Co., Ltd. : Thailand
Rohm
and Haas Chemical
[Thailand] Co., Ltd. :
Thailand
Brenntag
Ingredients [Thailand]
Public Company Limited : Thailand
Siam
Chemical Industry Co., Ltd. : Thailand
Eternal
Resin Co., Ltd. : Thailand
BASF
[Thai] Limited : Thailand
Alphani
International Co., Ltd. : Thailand
The
Shell Company of
Thailand : Thailand
Akzo
Nobel N.V. : Netherlands
SALES
100% of the
products is sold
locally by wholesale
to dealers nationwide.
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 on negotiated
term & T/T.
BANKING
Bank of America
NT & SA
[Bangkok Branch : 2/2
Wireless Rd., Pathumwan,
Bangkok]
Citibank, NA
[Bangkok Branch :
82 North Sathorn
Rd., Silom, Bangrak,
Bangkok]
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok]
Kasikornbank
Public Co., Ltd.
[Pakkred Branch :
100/2 Moo 3,
Chaengwattana Rd., Pakkred,
Nonthaburi]
EMPLOYMENT
The
subject employs approximately 2,700
office staff and
factory workers.
LOCATION
DETAILS
The
premise is owned
for administrative office,
factory I and
warehouse at the
heading address. Premise
is located in
commercial/residential area.
Bangkok
Branch Office :
- EKA Bangkok Branch,
12th Floor, Home
Place Office Building, 283/61-63 Soi
Sukhumvit 55
[Thonglor], Klongtonnua, Wattana,
Bangkok 10110.
- 21st Floor, Italthai
Tower, 2034/93-96 New
Petchburi Road, Bangkapi,
Huaykwang,
Bangkok 10320.
The
other factories are
located at:
- [Coating Sampran Branch]
34 Moo 4,
Petchkasem Road, T. Omyai, A. Sampran, Nakornpathom 73160.
- [A & AC Branch] 98/21
Moo 11, Budhamonthong Sai
5 Road, T. Raiking,
A. Sampran,
Nakornpathom 73120.
- [Coating BST Branch]
2 Soi G9,
Pakornsongkrohraj Road, T. Mabtaphut,
A. Muang,
Rayong 21150.
- [Coating Bangplee Branch]
900 Moo 15,
Theparak Road, Bangsaothong, Bangkok
10540.
- [EKA Wellgrow Branch]
151 Wellgrow Industrial Estate,
Moo 5, T. Bangsamak,
A. Bagpakong, Chachoengsao
24180.
- [EKA Bangpakong Branch]
39, Moo 5, T. Bangsamak, A. Bangpakong, Chachoengsao 24180.
- [EKA Seekiw Branch]
50 Moo 3,
T. Seekiw, A. Seekiw,
Nakornratchasima 30140.
- [EKA Bangsaothong
Branch] 31/11 Moo
3, T. Bangsaothong, A. Bangsaothong, Samutprakarn 10540.
- [EKA Casco Adhesives Branch]
9/8 Moo 5,
Phaholyothin Road, T. Klongnueng, A. Klongluang, Pathumthani 12130.
- [A & AC 2 Branch]
98/30 Moo 11,
Budhamonthon Sai 5
Road, T. Raiking,
A. Sampran,
Nakornpathom 73120.
COMMENT
The subject is a
leading international paint
business. It is concentrating on decorative
paints and coatings for food and beverage cans. Its success and growth have
come through a deep understanding of
customers’ needs and by meeting those needs with creative ideas and innovative products
under a range of
leading brands direct to each market segment.
The company has products for various segments, and in each segment ICI offers
the right quality to meet customers’ needs which have been
identified through the company’s use of
extensive market research to
differentiate its positioning
in each market
niche.
The company’s international brands and local
brands paints and coatings products have an overwhelming level of acceptance in both
the industrial and
consumer segments in
domestic market.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht.
10,000,000 divided into 10,000
shares of Bht.
1,000 each.
The
latest registered capital
was increased to
Bht. 15,000,000 divided into 15,000
shares of Bht.
1,000 each, with
the current capital
paid-up at Bht.
10,000,000 or Bht. 667 @ 15,000 shares.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2013]
at Bht. 10,000,000
of capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Akzo Nobel Coatings
International B.V. Nationality: Dutch Address : Netherlands |
14,998 |
99.99 |
|
Penther B.V Nationality: Dutch Address : Netherlands |
1 |
= 0.01 |
|
Akzo Nobel [C]
Holdings B.V. Nationality: Dutch Address :
Netherlands |
1 |
|
Total Shareholders : 3
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign-Dutch |
3 |
15,000 |
100.00 |
|
Total |
3 |
15,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Veerachai
Ratanacharussakul No. 4323
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 |
766,338,849 |
325,426,868 |
408,187,863 |
|
Trade Accounts Receivable
|
736,305,525 |
503,819,277 |
418,596,397 |
|
Related Company Receivable |
8,686,715 |
905,673 |
3,303,990 |
|
Current Portion of
Long-term Lending to Employees |
1,044,868 |
- |
- |
|
Inventories |
290,099,819 |
203,982,256 |
149,410,161 |
|
Other Current Assets
|
35,664,406 |
13,135,257 |
6,502,991 |
|
|
|
|
|
|
Total Current Assets
|
1,838,140,182 |
1,047,269,331 |
986,001,402 |
|
Cash at Bank pledged as a Collateral |
458,852 |
- |
- |
|
Fixed Assets |
503,802,950 |
225,165,549 |
223,613,183 |
|
Goodwill |
152,219,786 |
- |
- |
|
Intangible Assets |
2,316,965 |
1,474,577 |
2,130,918 |
|
Long-term Lending to Employees |
1,025,949 |
- |
- |
|
Other Non-current Assets |
5,564,315 |
2,055,956 |
1,395,305 |
|
Total Assets |
2,503,528,999 |
1,275,965,413 |
1,213,140,808 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft |
- |
17,066,428 |
- |
|
Trade Accounts Payable
|
865,779,715 |
397,043,484 |
421,379,863 |
|
Short-term Loan from Related
Company |
- |
120,000,000 |
- |
|
Related Company Payable |
132,889,518 |
72,496,668 |
64,326,925 |
|
Accrued Expenses |
170,617,793 |
104,818,610 |
159,162,084 |
|
Accrued Income Tax |
39,294,428 |
27,434,151 |
32,225,551 |
|
Other Current Liabilities |
41,594,183 |
68,919,584 |
65,175,352 |
|
|
|
|
|
|
Total Current Liabilities |
1,250,175,637 |
807,778,925 |
742,269,775 |
|
Long-term Loan from Related Company |
579,889,500 |
- |
- |
|
Employee Benefits Obligation |
31,957,744 |
28,208,756 |
25,543,486 |
|
Total Liabilities |
1,862,022,881 |
835,987,681 |
767,813,261 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, and issued
share capital 15,000 shares |
15,000,000 |
15,000,000 |
15,000,000 |
|
|
|
|
|
|
Capital Paid |
10,000,000 |
10,000,000 |
3,750,000 |
|
Premium on Share Capital |
62,050,000 |
62,050,000 |
62,050,000 |
|
Retained Earnings Appropriated Statutory Reserve |
1,500,000 |
1,500,000 |
1,500,000 |
|
Unappropriated |
567,956,118 |
366,427,732 |
378,027,547 |
|
Total Shareholders' Equity |
641,506,118 |
439,977,732 |
445,327,547 |
|
Total Liabilities &
Shareholders' Equity |
2,503,528,999 |
1,275,965,413 |
1,213,140,808 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
4,350,695,266 |
2,701,841,388 |
2,436,183,677 |
|
Interest Income |
1,398,190 |
1,507,291 |
1,074,714 |
|
Other Income |
15,086,290 |
15,434,616 |
5,611,081 |
|
Total Revenues |
4,367,174,746 |
2,718,783,295 |
2,442,869,472 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,629,943,070 |
1,540,877,168 |
1,293,285,885 |
|
Selling Expenses |
756,880,790 |
616,891,315 |
597,985,552 |
|
Administrative Expenses |
599,237,742 |
325,898,762 |
286,601,064 |
|
Total Expenses |
3,986,061,602 |
2,483,667,245 |
2,177,872,501 |
|
|
|
|
|
|
Profit / [Loss] before
Financial Cost & Income
Tax |
381,113,144 |
235,116,050 |
264,996,971 |
|
Financial Costs |
[18,067,731] |
- |
- |
|
Profit / [Loss] before Income
Tax |
363,045,413 |
235,116,050 |
264,996,971 |
|
Income Tax |
[91,517,027] |
[71,715,865] |
[82,859,111] |
|
|
|
|
|
|
Net Profit / [Loss] |
271,528,386 |
163,400,185 |
182,137,860 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.47 |
1.30 |
1.33 |
|
QUICK RATIO |
TIMES |
1.21 |
1.03 |
1.12 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
8.64 |
12.00 |
10.89 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.74 |
2.12 |
2.01 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
40.26 |
48.32 |
42.17 |
|
INVENTORY TURNOVER |
TIMES |
9.07 |
7.55 |
8.66 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
61.77 |
68.06 |
62.72 |
|
RECEIVABLES TURNOVER |
TIMES |
5.91 |
5.36 |
5.82 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
120.16 |
94.05 |
118.92 |
|
CASH CONVERSION CYCLE |
DAYS |
(18.12) |
22.33 |
(14.04) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
60.45 |
57.03 |
53.09 |
|
SELLING & ADMINISTRATION |
% |
31.17 |
34.89 |
36.31 |
|
INTEREST |
% |
0.42 |
- |
- |
|
GROSS PROFIT MARGIN |
% |
39.93 |
43.60 |
47.19 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
8.76 |
8.70 |
10.88 |
|
NET PROFIT MARGIN |
% |
6.24 |
6.05 |
7.48 |
|
RETURN ON EQUITY |
% |
42.33 |
37.14 |
40.90 |
|
RETURN ON ASSET |
% |
10.85 |
12.81 |
15.01 |
|
EARNING PER SHARE |
BAHT |
2,715.28 |
1,634.00 |
4,857.01 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.74 |
0.66 |
0.63 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.90 |
1.90 |
1.72 |
|
TIME INTEREST EARNED |
TIMES |
21.09 |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
61.03 |
10.90 |
|
|
OPERATING PROFIT |
% |
62.10 |
(11.28) |
|
|
NET PROFIT |
% |
66.17 |
(10.29) |
|
|
FIXED ASSETS |
% |
123.75 |
0.69 |
|
|
TOTAL ASSETS |
% |
96.21 |
5.18 |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 61.03%. Turnover has increased from THB
2,701,841,388.00 in 2011 to THB 4,350,695,266.00 in 2012.While net profit has increased
from THB 163,400,185.00 in 2011 to THB 271,528,386.00 in 2012. And total assets
has increased from THB 1,275,965,413.00 in 2011 to THB 2,503,528,999.00 in
2012.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
39.93 |
Acceptable |
Industrial Average |
65.90 |
|
Net Profit Margin |
6.24 |
Impressive |
Industrial Average |
3.84 |
|
Return on Assets |
10.85 |
Impressive |
Industrial Average |
4.93 |
|
Return on Equity |
42.33 |
Impressive |
Industrial Average |
10.12 |
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 39.93%. 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 6.24%, 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
10.85%, 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 42.33%, 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 :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.47 |
Satisfactory |
Industrial Average |
1.66 |
|
Quick Ratio |
1.21 |
|
|
|
|
Cash Conversion Cycle |
(18.12) |
|
|
|
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 1.47 times in 2012, increased from 1.3 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 1.21 times in 2012,
increased from 1.03 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 -19 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.74 |
Acceptable |
Industrial Average |
0.50 |
|
Debt to Equity Ratio |
2.90 |
Risky |
Industrial Average |
0.99 |
|
Times Interest Earned |
21.09 |
Impressive |
Industrial Average |
2.03 |
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 21.1 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 0.74 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
8.64 |
Impressive |
Industrial Average |
0.71 |
|
Total Assets Turnover |
1.74 |
Impressive |
Industrial Average |
1.27 |
|
Inventory Conversion Period |
40.26 |
|
|
|
|
Inventory Turnover |
9.07 |
Impressive |
Industrial Average |
4.82 |
|
Receivables Conversion Period |
61.77 |
|
|
|
|
Receivables Turnover |
5.91 |
Impressive |
Industrial Average |
2.67 |
|
Payables Conversion Period |
120.16 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.91 and 5.36 in
2012 and 2011 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate revenue. A lower ratio may indicate
over extension and collection problems. Conversely, a higher ratio may indicate
an overtly stringent policy. In this case, the company's A/R ratio in 2012
increased from 2011. This would suggest the company had good performance in the
management of its debt collections.
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has decreased from 48 days at the
end of 2011 to 40 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 7.55 times in year 2011 to 9.07 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.74 times and 2.12
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.66.89 |
|
UK Pound |
1 |
Rs.103.95 |
|
Euro |
1 |
Rs.88.09 |
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.