MIRA INFORM REPORT
|
Report Date : |
16.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
BERLIN PHARMACEUTICAL INDUSTRY CO., LTD. |
|
|
|
|
Registered Office : |
359
New Road, Pomprab,
Pomprabsatrupai, Bangkok 10100 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
07.08.1984 |
|
|
|
|
Com. Reg. No.: |
0105527028430 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and marketing
of established medical
and pharmaceutical products. |
|
|
|
|
No. of Employees : |
550 |
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 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
BERLIN PHARMACEUTICAL INDUSTRY CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 359
NEW ROAD, POMPRAB,
POMPRABSATRUPAI,
BANGKOK 10100,
THAILAND
TELEPHONE : [66] 2225-4261-3
FAX :
[66] 2225-4260,
2223-1011
E-MAIL
ADDRESS : marketing@berlinpharm.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1984
REGISTRATION
NO. : 0105527028430
[Former: 2844/2527]
TAX
ID NO. : 3101309348
CAPITAL REGISTERED : BHT. 19,607,840
CAPITAL PAID-UP : BHT.
19,607,840
SHAREHOLDER’S PROPORTION : THAI :
51.00%
FOREIGN :
49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. AMAL K. NAJ, INDIAN
CHIEF EXECUTIVE
OFFICER
NO.
OF STAFF : 550
LINES
OF BUSINESS : MEDICAL AND
PHARMACEUTICAL PRODUCTS
MANUFACTURER AND
MARKETER
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 August 7, 1984
as a private limited
company under the name
BERLIN PHARMACEUTICAL INDUSTRY
CO., LTD. by Thai
and foreign groups,
in order to manufacture and market medical and
pharmaceutical products to domestic
and overseas markets. Its production
has been certified
by the Health
Ministry of Thailand
for Good Manufacturing
Practice [GMP]. It currently
employs approximately 550
staff.
On July 12, 2002, the
subject’s name was
changed to BERLIN
PHARMA [THAILAND] CO., LTD. However,
it was re-named
to BERLIN PHARMACEUTICAL INDUSTRY
CO., LTD. on September
12, 2002.
The
subject’s registered address
is 359 New
Rd., Pomprab, Pomprabsatrupai, Bangkok 10100, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Termchai Chainuwat |
[x] |
Thai |
73 |
|
Mr. Suebchai Chainuwat |
|
Thai |
69 |
|
Mrs. Wanida Chainuwat |
[x] |
Thai |
72 |
|
Ms. Winda Chainuwat |
|
Thai |
47 |
|
Mrs. Lalana Satesuban |
|
Thai |
68 |
|
Ms. Choon Vatanyuta |
|
Thai |
83 |
AUTHORIZED PERSON
One of the
above directors [x]
can sign or
two of the
rest directors can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Amal K. Naj is
the Chief Executive
Officer.
He is Indian
nationality.
Mrs. Lalana Satesuban
is the Export
Manager.
She is Thai
nationality with the
age of 68 years
old.
Ms. Suvapit Thirapattarasakul is
the Sales Director.
She is Thai
nationality.
Mr. Suraphan Uransakul
is the Sales
Manager.
He is Thai
nationality.
Ms. Sasithorn Udomchaiteerakul is
the Factory Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
and marketing of
established medical and
pharmaceutical products in
various forms including
powder tablet, capsule,
liquid, ointment, cream
and gastrology drug
and etc., which
produced under the
standard ISO of Foods and
Drugs Organization. The
subject is a
market leader in
many of the
products, which are
prescribed for the
treatment high blood
pressure, cholesterol, gastrointestinal diseases
and diabetes. The products are
used for the
following areas:
- Cardiovascular
- Gastro-intestinal
- Metabolic
- Orthopedic
- Others
PURCHASE
Raw materials are purchased
from suppliers and
agents both local
and overseas countries
such as Germany, United States of
America, Switzerland, Canada,
United Kingdom, France,
Japan, India and
Republic of China.
MAJOR SUPPLIERS
BASF [Thai] Ltd. : Thailand
Acino Pharma AG. : Switzerland
Intas Pharmaceuticals Ltd. : India
Apotex Inc. : Canada
SALES
60% of the products are sold
locally by wholesale to dealers
and end-users both government
and private sector
nationwide.
EXPORT
40% of the products are
exported to Singapore, India,
Laos, Myanmar, Vietnam,
Indonesia, Hong Kong,
Philippines, Malaysia, Korea,
Republic of China,
Taiwan, South Africa
and Sri Lanka.
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 according to 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.
BUSINESS TRANSACTION
The products are
sold both by
cash and credit
with the maximum
credit given at
30-60 days. There
is no problem
on its account
receivable.
BANKING
Kasikornbank Public Co., Ltd.
[Head Office : 1 Kasikorn Lane,
Rajburana Rd., Rajburana, Bangkok 10140]
Bangkok Bank Public
Co., Ltd.
[Head Office :
333 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
Krung
Thai Bank Public
Co., Ltd.
[Head
Office : 35 Sukhumvit Rd.,
Klongtoeynua, Wattana, Bangkok
10110]
EMPLOYMENT
The
subject employs approximately
550 staff [office
staff and factory
workers].
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial
area.
Factory
& warehouse was
located at 374 Romklao Rd.,
Klongsampraves, Ladkrabang,
Bangkok 10520 Tel : [66]
2360-8729.
Recently the
factory & warehouse’s address
has been changed
to 222 Moo 5, Romklao Rd.,
Klongsampraves, Ladkrabang, Bangkok 10520, Tel:
[66] 2737-6717 Fax : [66] 2360-8729.
[Only the address
number has been
changed, but they
are the same
location.]
Branch
office is located
at 1575 Chai-sanguan
Building, New Petchburi
Road, Makkasan, Rajthewi,
Bangkok 10400.
COMMENT
Since the subject has been established in Thailand for 29 years, its products have been well accepted from both local and international markets with steady growth each year. The company’s productions are properly run by expertise with an outstanding performance.
The
subject has been
enjoying its solid
growth in the
past several years.
FINANCIAL INFORMATION
The
capital was initially registered at
Bht. 1,000,000 divided into 100,000 shares of
Bht. 10 each.
The
capital was increased
later as following:
Bht.
5,000,000 on October
25, 1985
Bht.
10,000,000 on October
31, 1989
Bht
19,607,840 on December
29, 2008
The
latest registered capital
was increased to Bht. 19,607,840 divided into 1,960,784 shares
of Bht. 10
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 29, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Green Stem Limited Nationality: Hong Kong Address : 41st Flr., Bank
of China Tower, 1 Garden
Rd., Central, Hong
Kong |
910,785 |
46.45 |
|
Ms. Winda Chainuwat Nationality: Thai Address :
458/1-3 Rama 1 Rd., Pathumwan,
Bangkok 10330 |
180,000 |
9.18 |
|
Mr. Athisit Chainuwat Nationality: Thai Address : 8/2
Sukhumvit 49 Rd., Prakanong, Bangkok
10110 |
100,000 |
5.10 |
|
Mr. Suebchai Chainuwat Nationality: Thai Address : 18
Sukhumvit 35 Rd.,
Klongton,
Prakanong, Bangkok |
100,000 |
5.10 |
|
Mr. Termchai Chainuwat Nationality: Thai Address : 458/1-3
Rama 1 Rd., Pathumwan,
Bangkok 10330 |
100,000 |
5.10 |
|
Mrs. Wanida Chainuwat Nationality: Thai Address : 458/1-3
Rama 1 Rd., Pathumwan,
Bangkok 10330 |
99,999 |
5.10 |
|
Mr. Nathachai Chainuwat Nationality: Thai Address : 8/2
Sukhumvit 49 Rd., Prakanong, Bangkok
10110 |
80,000 |
4.08 |
|
Ms. Maneechay Chainuwat Nationality: Thai Address : 8/2
Sukhumvit 49 Rd., Prakanong, Bangkok
10110 |
80,000 |
4.08 |
|
Ms. Sivaporn Chainuwat Nationality: Thai Address : 458/1-3
Rama 1 Rd., Pathumwan, Bangkok
10330 |
80,000 |
4.08 |
|
Mr. Ekachai Chainuwat Nationality: Thai Address : 458/1-3
Rama 1 Rd., Pathumwan, Bangkok
10330 |
80,000 |
4.08 |
|
Mrs. Thiparat Chainuwat Nationality: Thai Address : 18 Sukhumvit 35 Rd.,
Klongton,
Prakanong, Bangkok |
80,000 |
4.08 |
|
Mr. Amal K. Naj Nationality: Indian Address : 101
Soi Yen-akart 3, Yen-akart
Rd.,
Chongnonsee, Yannawa, Bangkok |
50,000 |
2.55 |
|
Ms. Lalana Satesuban Nationality: Thai Address : 56/3
Moo 2, Klongchan,
Bangkapi, Bangkok |
10,000 |
0.51 |
|
Ms. Choon Vatanyuta Nationality: Thai Address : 1764/1
Rama 6 Rd., Rongmuang,
Pathuman, Bangkok |
10,000 |
0.51 |
Total Shareholders : 14
Share Structure [as
at April 29,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
12 |
999,999 |
51.00 |
|
Foreign |
2 |
960,785 |
49.00 |
|
Total |
14 |
1,960,784 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Kasem Thoonkrisana No. 5643
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 |
227,476,412.86 |
277,219,776.43 |
279,909,283.10 |
|
Short-term Lending |
233,736,821.41 |
245,754,953.59 |
160,772,763.17 |
|
Trade Accounts Other Receivable |
625,828,558.24 |
602,191,792.74 |
574,284,829.96 |
|
Inventories |
281,324,060.46 |
353,026,858.20 |
178,605,123.27 |
|
Other Current Assets
|
102,094,544.73 |
135,635,303.16 |
79,904,209.40 |
|
|
|
|
|
|
Total Current Assets
|
1,470,460,397.70 |
1,613,828,684.12 |
1,273,476,208.90 |
|
Long-term Lending to
Related Person |
51,294,358.35 |
24,813,518.85 |
21,144,738.45 |
|
Investment in Related Company |
3,490,024.00 |
3,490,024.00 |
3,490,024.00 |
|
Long-term Investment |
18,082,900.00 |
18,082,900.00 |
18,495,024.00 |
|
Fixed Assets |
481,658,724.68 |
355,809,937.87 |
342,934,058.73 |
|
Intangible Assets |
105,535,048.34 |
52,722,062.84 |
6,591,609.64 |
|
Other Non - current Assets |
31,153,373.80 |
8,783,633.07 |
7,162,711.43 |
|
Total Assets |
2,161,674,826.87 |
2,077,530,760.75 |
1,673,295,086.15 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft from Financial Institutions |
- |
35,904,757.54 |
- |
|
Trade Accounts Payable
|
157,382,621.38 |
186,777,859.68 |
94,582,190.37 |
|
Short-term Loan from Person or Related Company |
5,370,550.66 |
5,150,355.90 |
5,721,223.05 |
|
Other Current Liabilities |
321,518,221.77 |
379,132,363.79 |
347,007,874.97 |
|
|
|
|
|
|
Total Current Liabilities |
484,271,393.81 |
606,965,336.91 |
447,311,288.39 |
|
Hire-purchase Payable |
11,975,486.00 |
17,302,330.00 |
25,511,301.82 |
|
Employee Benefits Obligation |
94,101,003.00 |
80,873,108.00 |
- |
|
Total Liabilities |
590,347,882.81 |
705,140,774.91 |
472,822,590.21 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 1,960,784 shares |
19,607,840.00 |
19,607,840.00 |
19,607,840.00 |
|
|
|
|
|
|
Capital Paid |
19,607,840.00 |
19,607,840.00 |
19,607,840.00 |
|
Retained Earnings Appropriated for Statutory Reserve |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
Unrealized (loss)
on Change in Value of Investments |
- |
- |
[194,214.00] |
|
Unappropriated |
1,549,719,104.06 |
1,350,782,145.84 |
1,179,058,869.94 |
|
Total Shareholders' Equity |
1,571,326,944.06 |
1,372,389,985.84 |
1,200,472,495.94 |
|
Total Liabilities &
Shareholders' Equity |
2,161,674,826.87 |
2,077,530,760.75 |
1,673,295,086.15 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
2,132,725,741.90 |
1,968,330,618.52 |
1,807,930,832.45 |
|
Gain on Exchange Rate |
6,087,737.40 |
- |
6,821,339.15 |
|
Gain on Disposal of
Assets |
699,355.36 |
503,478.63 |
1,915,582.70 |
|
Gain on Investment |
9,086,838.31 |
3,021,393.07 |
- |
|
Other Income |
7,208,014.98 |
9,328,956.66 |
6,563,762.20 |
|
Total Revenues |
2,155,807,687.95 |
1,981,184,446.88 |
1,823,231,516.50 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,039,325,605.11 |
914,160,242.63 |
809,937,634.37 |
|
Selling Expenses |
445,938,458.27 |
440,350,421.94 |
446,689,699.66 |
|
Administrative Expenses |
258,708,482.97 |
238,372,323.04 |
190,523,579.26 |
|
Loss on Exchange Rate |
- |
4,117,741.80 |
- |
|
Total Expenses |
1,743,972,546.35 |
1,597,000,729.41 |
1,447,150,913.29 |
|
|
|
|
|
|
Profit / [Loss] before
Financial Cost & Income
Tax |
411,835,141.60 |
384,183,717.47 |
376,080,603.21 |
|
Financial Costs |
[717,206.65] |
[904,238.91] |
[748,379.59] |
|
Profit / [Loss] before Income
Tax |
411,117,934.95 |
383,279,478.56 |
375,332,223.62 |
|
Income Tax |
[55,318,256.73] |
[82,249,643.66] |
[50,636,244.91] |
|
|
|
|
|
|
Net Profit / [Loss] |
355,799,678.22 |
301,029,834.90 |
324,695,978.71 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
3.04 |
2.66 |
2.85 |
|
QUICK RATIO |
TIMES |
2.24 |
1.85 |
2.27 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.43 |
5.53 |
5.27 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.99 |
0.95 |
1.08 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
98.80 |
140.95 |
80.49 |
|
INVENTORY TURNOVER |
TIMES |
3.69 |
2.59 |
4.53 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
107.11 |
111.67 |
115.94 |
|
RECEIVABLES TURNOVER |
TIMES |
3.41 |
3.27 |
3.15 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
55.27 |
74.58 |
42.62 |
|
CASH CONVERSION CYCLE |
DAYS |
150.63 |
178.05 |
153.81 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
48.73 |
46.44 |
44.80 |
|
SELLING & ADMINISTRATION |
% |
33.04 |
34.48 |
35.25 |
|
INTEREST |
% |
0.03 |
0.05 |
0.04 |
|
GROSS PROFIT MARGIN |
% |
52.35 |
54.21 |
56.05 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
19.31 |
19.52 |
20.80 |
|
NET PROFIT MARGIN |
% |
16.68 |
15.29 |
17.96 |
|
RETURN ON EQUITY |
% |
22.64 |
21.93 |
27.05 |
|
RETURN ON ASSET |
% |
16.46 |
14.49 |
19.40 |
|
EARNING PER SHARE |
BAHT |
181.46 |
153.53 |
165.59 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.27 |
0.34 |
0.28 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.38 |
0.51 |
0.39 |
|
TIME INTEREST EARNED |
TIMES |
574.22 |
424.87 |
502.53 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
8.35 |
8.87 |
|
|
OPERATING PROFIT |
% |
7.20 |
2.15 |
|
|
NET PROFIT |
% |
18.19 |
(7.29) |
|
|
FIXED ASSETS |
% |
35.37 |
3.75 |
|
|
TOTAL ASSETS |
% |
4.05 |
24.16 |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 8.35%. Turnover has increased from THB
1,968,330,618.52 in 2011 to THB 2,132,725,741.90 in 2012. While net profit has increased
from THB 301,029,834.90 in 2011 to THB 355,799,678.22 in 2012. And total assets
has increased from THB 2,077,530,760.75 in 2011 to THB 2,161,674,826.87 in
2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
52.35 |
Impressive |
Industrial
Average |
20.10 |
|
Net Profit Margin |
16.68 |
Impressive |
Industrial
Average |
5.09 |
|
Return on Assets |
16.46 |
Impressive |
Industrial
Average |
9.40 |
|
Return on Equity |
22.64 |
Impressive |
Industrial
Average |
20.66 |
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
figures is 52.35%. When compared
with the industry average, the ratio of the company was higher, indicated that
company was more profitable than the same industry.
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 figures is
16.68%, 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
16.46%, 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 22.64%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profit in a dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
3.04 |
Impressive |
Industrial
Average |
1.49 |
|
Quick Ratio |
2.24 |
|
|
|
|
Cash Conversion Cycle |
150.63 |
|
|
|
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 3.04 times in 2012, increased from 2.66 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 2.24 times in 2012,
increased from 1.85 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 151 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.27 |
Impressive |
Industrial
Average |
0.52 |
|
Debt to Equity Ratio |
0.38 |
Impressive |
Industrial
Average |
1.15 |
|
Times Interest Earned |
574.22 |
Impressive |
Industrial
Average |
1.56 |
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 574.23 higher than 1, so the company can pay interest
expenses on outstanding debt.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.27 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 Uptrend
Times Interest Earned Downtrend
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.43 |
Impressive |
Industrial
Average |
0.37 |
|
Total Assets Turnover |
0.99 |
Acceptable |
Industrial
Average |
1.86 |
|
Inventory Conversion Period |
98.80 |
|
|
|
|
Inventory Turnover |
3.69 |
Acceptable |
Industrial
Average |
6.38 |
|
Receivables Conversion Period |
107.11 |
|
|
|
|
Receivables Turnover |
3.41 |
Impressive |
Industrial
Average |
3.41 |
|
Payables Conversion Period |
55.27 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.41 and 3.27 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 141 days at the
end of 2011 to 99 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 2.59 times in year 2011 to 3.69 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.99 times and 0.95
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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.79 |
|
|
1 |
Rs.100.70 |
|
Euro |
1 |
Rs.84.67 |
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.