MIRA
INFORM REPORT
|
Report Date : |
25.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
LINARIA CHEMICALS
[THAILAND] LTD. |
|
|
|
|
Formerly Known as : |
LUPIN CHEMICALS [THAILAND] LTD.] |
|
|
|
|
Registered Office : |
1st Floor.,
Cathay House, 8/6
North Sathorn Rd.,
Silom,
Bangrak,
Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
06.01.1987 |
|
|
|
|
Com. Reg. No.: |
0105530000851 [Former:
86/2530] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Engaged in manufacturing
and distributing of
pharmaceutical chemicals, specialized
in classical Macrolides
and anti-tuberculosis products
for pharmaceutical productions bearing the trademark “LINARIA” |
|
|
|
|
No of Employees : |
200 (approximately) |
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 but Correct |
|
|
|
|
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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. 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 recession severely cut Thailand's exports, with most
sectors experiencing double-digit drops. In late 2011 Thailand's recovery was
interrupted by historic flooding in the industrial areas in Bangkok and its
five surrounding provinces, crippling the manufacturing sector. The government
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 following seven years.
|
Source : CIA |
Company name
LINARIA CHEMICALS
[THAILAND] LTD.
FORMER : LUPIN CHEMICALS [THAILAND]
LTD.]
SUMMARY
BUSINESS
ADDRESS : 1st FLOOR,
CATHAY HOUSE,
8/6 NORTH
SATHORN ROAD,
SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2696-8791, 2696-8648
FAX :
[66] 2237-2604
E-MAIL ADDRESS : linaria@linariachem.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1987
REGISTRATION
NO. : 0105530000851 [Former: 86/2530]
TAX
ID NO. : 310142367
CAPITAL REGISTERED : BHT.
200,000,000
CAPITAL PAID-UP : BHT.
200,000,000
SHAREHOLDER’S PROPORTION : THAI : 78.61%
FOREIGN :
21.39%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. RAMESH CHANDRA
SABOO, INDIAN
PRESIDENT
NO.
OF STAFF : 200
LINES
OF BUSINESS : PHARMACEUTICAL PRODUCTS
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
LOW PERFORMANCE
HISTORY
The
subject was established
on January 6,
1987 as a
private limited company
under the name
style LUPIN CHEMICALS
[THAILAND] LTD., originally
by a joint
venture between Lupin Laboratories,
India and GP
group of companies,
Thailand, in order
to manufacture pharmaceutical products
for domestic and
international markets. The
products are strictly manufactured adhering to
manufacturing practices [GMP]
duty certified by
Food and Drug
Administration [FDA] of
Thailand. On June
26, 2006, subject’s
name was changed
to LINARIA CHEMICALS [THAILAND]
LTD. It
currently employs approximately
200 staff.
The subject is
the largest bulk
pharmaceutical manufacturing company
in South East
Asia. Presently, the
subject is a
subsidiary of Globex Corporation
Ltd., Thailand.
The
subject’s registered address
was initially at
GP House, 71
Sap Rd., Siphya, Bangrak, Bangkok
10500.
On
September 26, 2005,
subject’s registered address
was relocated to 8th Flr., Cathay House,
8/17-18 North Sathorn Rd., Silom, Bangrak,
Bangkok 10500.
On
August 15, 2012
the subject’s registered
address was relocated
to 1st Flr., Cathay House,
8/6 North Sathorn Rd., Silom, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Nirand
Sindhupakorn |
|
Thai |
68 |
|
Ms. Nishita
Shah |
|
Thai |
33 |
|
Mr. Shirish
Sharma |
|
Indian |
46 |
|
Mr. Ramesh
Chandra Saboo |
|
Indian |
55 |
|
Mr. Isachan
Shah |
|
Indian |
26 |
|
Mr. Kirit
Shah |
|
Indian
|
60 |
|
Ms. Sameera
Shah |
|
Thai |
30 |
AUTHORIZED PERSON
Any two of
the above directors can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Ramesh
Chandra Saboo is
the President.
He is Indian
nationality with the
age of 55 years
old.
Mr. V.K. Hebil is
the Vice President
[Manufacturing & Technical].
He is Indian
nationality.
Mr. Vasant
Kumar is the
Export Manager.
He is Indian
nationality.
Ms. Siriporn
Suranaka
is the Finance
& Accounting Manager.
She is Thai
nationality.
Mr. Shirish
Sharma is the
Marketing Manager.
He is Indian
nationality with the
age of 46
years old.
Mr. Wicha
Sukhumavasee
is the Administration Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is engaged in
manufacturing and distributing
of pharmaceutical chemicals,
specialized in classical Macrolides and
anti-tuberculosis products for
pharmaceutical productions. The
products are as
follows:
Antibiotic Products
·
Erythromycin
Estolate
BP/USP
·
Erythromycin
Stearate
BP/USP
·
Erythromycin
Ethylsuccinate
BP/USP
·
Erythromycin
Base
Anti-tuberculosis Products
·
Ethambutol Hydrochloride
·
Pyrazinamide BP/USP
TRADEMARK
“LINARIA”
PRODUCTION
2,000 tons per
annum
PURCHASE
70% of raw
material is purchased
from local suppliers,
and the remaining
30% is imported
from United States
of America, Republic
of China, Japan,
Germany, Taiwan, India
and Malaysia.
MAJOR SUPPLIERS
Abbot Laboratories Inc. : U.S.A.
Helm AG. : Germany
Maheco
Chemical Co., Ltd. : Republic
of China
Lupin Ltd. : India
Remex Corporation
Ltd. : Japan
EXPORT
80%
of the products
is exported mainly to
United States of
America, and European
countries; United Kingdom,
Italy, Germany, and the rest to Asian countries, such as Singapore, Malaysia, Vietnam,
Taiwan, Republic of
China, Japan, Indonesia
and India.
SALES
20% of the
products is sold
locally by wholesale
to manufacturers and
end-users.
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is
not found to have any
subsidiary or affiliated
company here in
Thailand.
LITIGATION
Bankruptcy and
Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the subject
found at Legal
Execution Department for
the past five
years.
Others
There are no
legal suits filed
against the subject
for the past
two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of 30-60 days.
Imports are by
L/C at sight
or T/T &
D/A.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office :
333 Silom Rd., Silom, Bangrak, Bangkok]
The Siam Commercial
Bank Public Co.,
Ltd.
[Head Office :
9 Ratchgadapisek Rd., Ladyao, Jatujak, Bangkok]
United Overseas Bank
[Thai] Public Co.,
Ltd.
[Head Office :
690 Sukhumvit Rd., Klongton, Klongtoey, Bangkok]
EMPLOYMENT
The
subject employs approximately
200 staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Factory and
warehouse are located
at Bangpoo Industrial
Estate, 309 Moo 4, Soi 6 C, Sukhumvit Rd., Praeksa, Muang, Samutprakarn
10280.
Tel
: [66] 2324-0478-80 Fax
: [66] 2324-0892.
COMMENT
The subject is one
of the leading
manufacturer of pharmaceutical products
for both local
and export. Its
products have been
widely used in international
markets as they
were met with
FDA, in U.S.A. as
well as recognition
of high quality
standard from many
countries in Europe
and Asia.
As the pioneer
producer of pharmaceutical
productions, its products range are covered
the area of
industry’s needs. Subject
is optimistic for
a moderate business.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 30,000,000
divided into 300,000 shares
of Bht. 100
each.
The
capital was increased
and decreased later
as following:
Increased was : Bht.
64,000,000 on March
21, 1989
Decreased
was :
Bht. 40,000,000 on
August 25, 1989
Increased was
: Bht.
70,000,000 on October
13, 1997
Increased was : Bht.
115,000,000 on February
23, 2007
Increased was : Bht.
200,000,000 on May
25, 2010
The
latest registered capital
was increased to Bht. 200,000,000
divided into 2,000,000
shares of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Globex Corporation
Ltd. Nationality: Thai Address : 8/25
North Sathorn Rd.,
Silom,
Bangrak,
Bangkok |
1,382,497 |
69.12 |
|
Indowest Holding
Ltd. Nationality: Mauritius Address : Port
Louis, Mauritius |
420,000 |
21.00 |
|
Ms. Nishita
Shah Nationality: Thai Address : 35/42
Sukhumvit
11 Rd., Klongtoeynua, Wattana, Bangkok |
189,778 |
9.49 |
|
Mr. Vedirach
Krishna Hebli Nationality: Indian Address : 71
Sap Rd., Siphya, Bangrak, Bangkok
|
7,720 |
0.39 |
|
Ms. Sameera
Shah Nationality: Thai Address : 35/42
Sukhumvit
11 Rd., Klongtoeynua, Wattana, Bangkok |
5 |
- |
Total Shareholders : 5
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
1,572,280 |
78.61 |
|
Foreign |
2 |
427,720 |
21.39 |
|
Total |
5 |
2,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Thanit
Osathalert No.
5155
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents
|
229,658 |
1,037,652 |
8,699,327 |
|
Trade Account Receivable |
129,807,038 |
145,451,263 |
172,697,343 |
|
Other Receivable |
3,271,407 |
5,800,545 |
6,244,283 |
|
Advance Payment to Related Company |
- |
20,444,445 |
14,180,124 |
|
Inventories |
120,891,658 |
199,005,816 |
104,520,400 |
|
|
|
|
|
|
Total Current Assets
|
254,199,761 |
371,739,721 |
306,341,477 |
|
Investment in Subsidiary & Associated Company |
21,864,499 |
24,866,560 |
24,866,560 |
|
Fixed Assets |
102,486,946 |
93,898,547 |
100,607,266 |
|
Cash at Bank
under Restriction |
36,331,622 |
30,591,185 |
30,591,185 |
|
Intangible Assets |
17,864,664 |
11,831,422 |
13,161,470 |
|
Other Non-current Assets |
7,291,770 |
3,210,859 |
465,507 |
|
Total Assets |
440,039,262 |
536,138,294 |
476,033,465 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
148,224,229 |
135,064,817 |
56,651,624 |
|
Trade Account Payable |
113,736,655 |
190,420,440 |
181,852,812 |
|
Other Payable |
19,735,815 |
26,761,135 |
34,959,217 |
|
Short-term Loan from Person
or Related Company |
11,000,000 |
11,000,000 |
14,008,700 |
|
Current Portion of
Finance Lease Contract Liabilities |
1,095,368 |
1,049,893 |
1,339,607 |
|
Accrued Income Tax |
- |
- |
1,867,198 |
|
|
|
|
|
|
Total Current Liabilities |
293,792,067 |
364,296,285 |
290,679,158 |
|
Finance Lease Contract
Liabilities |
1,369,210 |
- |
1,049,893 |
|
Employee Benefit Obligation |
9,384,494 |
10,353,145 |
- |
|
Total Liabilities |
304,545,771 |
374,649,430 |
291,729,051 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 2,000,000 shares |
200,000,000 |
200,000,000 |
200,000,000 |
|
|
|
|
|
|
Capital Paid |
200,000,000 |
200,000,000 |
200,000,000 |
|
Surplus on Assets Revaluation |
- |
- |
14,000,000 |
|
Retained Earning [Deficit] |
[64,506,509] |
[38,511,136] |
[29,695,586] |
|
Total Shareholders' Equity |
135,493,491 |
161,488,864 |
184,304,414 |
|
Total Liabilities & Shareholders' Equity |
440,039,262 |
536,138,294 |
476,033,465 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
550,608,649 |
776,356,909 |
699,418,266 |
|
Gain on Exchange
Rate |
- |
- |
13,320,753 |
|
Other Income |
9,694,631 |
4,380,693 |
140,735 |
|
Total Revenues |
560,303,280 |
780,737,602 |
712,879,754 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
536,626,615 |
727,598,075 |
639,393,399 |
|
Selling Expenses |
18,219,589 |
21,438,353 |
31,561,109 |
|
Administrative Expenses |
25,765,892 |
26,146,404 |
26,507,621 |
|
Total Expenses |
580,612,096 |
775,182,832 |
697,462,129 |
|
|
|
|
|
|
Profit / Loss] before Financial
Cost & Income Tax |
[20,308,816] |
5,554,770 |
15,417,625 |
|
Financial Cost |
[5,686,557] |
[3,956,834] |
[4,661,591] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax
|
[25,995,373] |
1,597,936 |
10,756,034 |
|
Income Tax |
- |
[1,325,116] |
[3,201,996] |
|
Net Profit / [Loss] |
[25,995,373] |
272,820 |
7,554,038 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.87 |
1.02 |
1.05 |
|
QUICK RATIO |
TIMES |
0.45 |
0.47 |
0.69 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.37 |
8.27 |
6.95 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.25 |
1.45 |
1.47 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
82.23 |
99.83 |
59.67 |
|
INVENTORY TURNOVER |
TIMES |
4.44 |
3.66 |
6.12 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
86.05 |
68.38 |
90.12 |
|
RECEIVABLES TURNOVER |
TIMES |
4.24 |
5.34 |
4.05 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
77.36 |
95.52 |
103.81 |
|
CASH CONVERSION CYCLE |
DAYS |
90.92 |
72.69 |
45.98 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
97.46 |
93.72 |
91.42 |
|
SELLING & ADMINISTRATION |
% |
7.99 |
6.13 |
8.30 |
|
INTEREST |
% |
1.03 |
0.51 |
0.67 |
|
GROSS PROFIT MARGIN |
% |
4.30 |
6.84 |
10.51 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(3.69) |
0.72 |
2.20 |
|
NET PROFIT MARGIN |
% |
(4.72) |
0.04 |
1.08 |
|
RETURN ON EQUITY |
% |
(19.19) |
0.17 |
4.10 |
|
RETURN ON ASSET |
% |
(5.91) |
0.05 |
1.59 |
|
EARNING PER SHARE |
BAHT |
(13.00) |
0.14 |
3.78 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.69 |
0.70 |
0.61 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.25 |
2.32 |
1.58 |
|
TIME INTEREST EARNED |
TIMES |
(3.57) |
1.40 |
3.31 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(29.08) |
11.00 |
|
|
OPERATING PROFIT |
% |
(465.61) |
(63.97) |
|
|
NET PROFIT |
% |
(9,628.40) |
(96.39) |
|
|
FIXED ASSETS |
% |
9.15 |
(6.67) |
|
|
TOTAL ASSETS |
% |
(17.92) |
12.63 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -29.08%. Turnover has decreased from THB 776,356,909.00
in 2011 to THB 550,608,649.00 in 2012. While net profit has decreased from THB
272,820.00 in 2011 to THB -25,995,373.00 in 2012. And total assets has
decreased from THB 536,138,294.00 in 2011 to THB 440,039,262.00 in 2012.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
4.30 |
Deteriorated |
Industrial Average |
19.93 |
|
Net Profit Margin |
(4.72) |
Deteriorated |
Industrial Average |
4.10 |
|
Return on Assets |
(5.91) |
Deteriorated |
Industrial Average |
7.44 |
|
Return on Equity |
(19.19) |
Deteriorated |
Industrial Average |
18.06 |
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 4.3%. 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 -4.72%. 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 -5.91%.
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 -19.19%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.87 |
Risky |
Industrial Average |
1.43 |
|
Quick Ratio |
0.45 |
|
|
|
|
Cash Conversion Cycle |
90.92 |
|
|
|
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 0.87 times in 2012, decreased from 1.02 times, then the company may have
problems meeting its short-term obligations. 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 0.45 times in 2012,
decreased from 0.47 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 91 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.69 |
Acceptable |
Industrial Average |
0.62 |
|
Debt to Equity Ratio |
2.25 |
Risky |
Industrial Average |
1.61 |
|
Times Interest Earned |
(3.57) |
Risky |
Industrial Average |
- |
Debt to Equity Ratio a measurement of how much suppliers, lenders,
creditors and obligors have committed to the company versus what the
shareholders have committed. A higher the percentage means that the company is using
less equity and has stronger leverage position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is -3.58 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 0.69 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 Uptrend
Times Interest Earned Stable
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
5.37 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.25 |
Acceptable |
Industrial Average |
1.82 |
|
Inventory Conversion Period |
82.23 |
|
|
|
|
Inventory Turnover |
4.44 |
Acceptable |
Industrial Average |
6.69 |
|
Receivables Conversion Period |
86.05 |
|
|
|
|
Receivables Turnover |
4.24 |
Impressive |
Industrial Average |
2.52 |
|
Payables Conversion Period |
77.36 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.24 and 5.34 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 100 days at the
end of 2011 to 82 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 3.66 times in year 2011 to 4.44 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.25 times and 1.45
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 Stable
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.07 |
|
UK Pound |
1 |
Rs.102.77 |
|
Euro |
1 |
Rs.84.49 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
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.