MIRA
INFORM REPORT
|
Report Date : |
06.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
DIACHROME CHEMICALS LIMITED |
|
|
|
|
Formerly Known As : |
THAI-OCCIDENTIAL CHEMICAL LTD. |
|
|
|
|
Registered Office : |
1st Floor, Zone
B, |
|
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Country : |
|
|
|
|
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Financials (as on) : |
31.12.2013 |
|
|
|
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Date of Incorporation : |
11.02.1983 |
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Com. Reg. No.: |
0105526005941 [Former :
594/2526] |
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Legal Form : |
Private Limited Company |
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Line of Business : |
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. |
|
|
|
|
No. of Employees |
74 |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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. 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 in 2013 implemented a
nation-wide 300 baht ($10) per day minimum wage policy and deployed 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. This was expected to lead to an
economic upsurge but growth has remained slow, in part due to ongoing political
unrest and resulting uncertainties. Spending on infrastructure will require
re-approval once a new government is seated.
|
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 : 74
LINES OF BUSINESS : TANNING
& LEATHER CHEMICALS
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 overseas
markets. It currently
employs 74 staff.
The subject’s name
was changed as
the followings:
Thai-Diamond
Shamrock Chrome 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
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 |
|
|
|
|
|
|
Ms. Kalayanee Srifuengfung |
[x] |
Thai |
58 |
|
Mr. Chainarong Srifuengfung |
[x] |
Thai |
69 |
|
Mr. Sombat Panitchewa |
|
Thai |
79 |
|
Mr. Vitoon Techatasanasoontorn |
[x] |
Thai |
74 |
|
Ms. Nishita Shah |
|
Indian |
33 |
|
Mr. Thawin Srifuengfung |
[x] |
Thai |
38 |
AUTHORIZED PERSON
Any 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 69
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, Austria,
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 manufactures, 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
C.P.L. Group Public
Company Limited :
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 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 currently
employs 74 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
three years. Subject’s
sales have been
decreased significantly which
resulted in the
subject’s net loss
for three consecutive years.
However, industrial improvement
in the second
half of 2014
would end the
year with positive results.
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
29, 2014]
|
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 Techatasanasoontorn Nationality : Thai Address : 191/39
Sukhumvit 31 Rd.,
Klongtonnua, Wattana, Bangkok
10110 |
500 |
0.11 |
Total Shareholders : 13
Share Structure [as
at April 29,
2014]
|
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,
2013, 2012 &
2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash in hand
& at Bank |
34,501,392.55 |
14,510,829.60 |
22,851,603.43 |
|
Trade Account & Other
Receivable |
26,878,382.56 |
37,358,061.00 |
37,057,606.19 |
|
Inventories |
60,143,511.01 |
61,183,885.88 |
68,020,177.29 |
|
Other Current Assets
|
4,227,332.86 |
2,744,089.47 |
2,272,171.12 |
|
|
|
|
|
|
Total Current Assets
|
125,750,618.98 |
115,796,865.95 |
130,201,558.03 |
|
Other Long-term Investment |
200,000.00 |
200,000.00 |
200,000.00 |
|
Fixed Assets |
19,489,413.60 |
21,257,841.95 |
21,630,309.58 |
|
Other Non-current Assets |
349,876.33 |
344,021.68 |
338,337.69 |
|
Total Assets |
145,789,908.91 |
137,598,729.58 |
152,370,205.21 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term
Loan from Financial Institutions |
41,607,905.10 |
26,479,135.95 |
9,324,295.55 |
|
Trade Accounts & Other
Payable |
5,867,197.99 |
6,924,438.04 |
20,446,335.22 |
|
Other Current Liabilities |
162,329.67 |
178,918.63 |
104,965.01 |
|
|
|
|
|
|
Total Current Liabilities |
47,637,432.76 |
33,582,492.62 |
29,875,595.78 |
|
Employee Benefits Obligation |
7,982,148.00 |
8,652,786.00 |
8,657,927.00 |
|
Total Liabilities |
55,619,580.76 |
42,235,278.62 |
38,533,522.78 |
|
|
|
|
|
|
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 |
37,370,328.15 |
42,563,450.96 |
61,036,682.43 |
|
Total Shareholders' Equity |
90,170,328.15 |
95,363,450.96 |
113,836,682.43 |
|
Total Liabilities &
Shareholders' Equity |
145,789,908.91 |
137,598,729.58 |
152,370,205.21 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
158,065,550.40 |
172,502,185.28 |
196,379,089.75 |
|
Other Income |
1,496,062.07 |
1,495,826.84 |
1,313,575.22 |
|
Total Revenues |
159,561,612.47 |
173,998,012.12 |
197,692,664.97 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
140,378,946.06 |
170,073,317.46 |
186,586,853.80 |
|
Selling Expenses |
7,929,094.90 |
8,002,467.83 |
8,037,333.16 |
|
Administrative Expenses |
15,675,001.16 |
13,836,792.07 |
13,588,249.10 |
|
Total Expenses |
163,983,042.12 |
191,912,577.36 |
208,212,436.06 |
|
|
|
|
|
|
Profit before Financial Cost |
[4,421,429.65] |
[17,914,565.24] |
[10,519,771.09] |
|
Financial Cost |
[771,693.16] |
[558,666.23] |
[572,610.25] |
|
Net Profit / [Loss] |
[5,193,122.81] |
[18,473,231.47] |
[11,092,381.34] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.64 |
3.45 |
4.36 |
|
QUICK RATIO |
TIMES |
1.29 |
1.54 |
2.01 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
8.11 |
8.11 |
9.08 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.08 |
1.25 |
1.29 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
156.38 |
131.31 |
133.06 |
|
INVENTORY TURNOVER |
TIMES |
2.33 |
2.78 |
2.74 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
62.07 |
79.05 |
68.88 |
|
RECEIVABLES TURNOVER |
TIMES |
5.88 |
4.62 |
5.30 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
15.26 |
14.86 |
40.00 |
|
CASH CONVERSION CYCLE |
DAYS |
203.19 |
195.49 |
161.94 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
88.81 |
98.59 |
95.01 |
|
SELLING & ADMINISTRATION |
% |
14.93 |
12.66 |
11.01 |
|
INTEREST |
% |
0.49 |
0.32 |
0.29 |
|
GROSS PROFIT MARGIN |
% |
12.14 |
2.28 |
5.66 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(2.80) |
(10.39) |
(5.36) |
|
NET PROFIT MARGIN |
% |
(3.29) |
(10.71) |
(5.65) |
|
RETURN ON EQUITY |
% |
(5.76) |
(19.37) |
(9.74) |
|
RETURN ON ASSET |
% |
(3.56) |
(13.43) |
(7.28) |
|
EARNING PER SHARE |
BAHT |
(10.82) |
(38.49) |
(23.11) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.38 |
0.31 |
0.25 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.62 |
0.44 |
0.34 |
|
TIME INTEREST EARNED |
TIMES |
(5.73) |
(32.07) |
(18.37) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(8.37) |
(12.16) |
|
|
OPERATING PROFIT |
% |
(75.32) |
70.29 |
|
|
NET PROFIT |
% |
71.89 |
(66.54) |
|
|
FIXED ASSETS |
% |
(8.32) |
(1.72) |
|
|
TOTAL ASSETS |
% |
5.95 |
(9.69) |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -8.37%. Turnover has decreased from THB 172,502,185.28
in 2012 to THB 158,065,550.40 in 2013. While net profit has increased from THB
-18,473,231.47 in 2012 to THB -5,193,122.81 in 2013. And total assets has
increased from THB 137,598,729.58 in 2012 to THB 145,789,908.91 in 2013.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
12.14 |
Deteriorated |
Industrial Average |
62.38 |
|
Net Profit Margin |
(3.29) |
Deteriorated |
Industrial Average |
6.26 |
|
Return on Assets |
(3.56) |
Deteriorated |
Industrial Average |
6.99 |
|
Return on Equity |
(5.76) |
Deteriorated |
Industrial Average |
11.35 |
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 12.14%. 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 -3.29%.
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 -3.56%.
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 -5.76%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
2.64 |
Impressive |
Industrial Average |
2.09 |
|
Quick Ratio |
1.29 |
|
|
|
|
Cash Conversion Cycle |
203.19 |
|
|
|
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 2.64 times in 2013, decreased from 3.45 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 1.29 times in 2013,
decreased from 1.54 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 204 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.38 |
Acceptable |
Industrial Average |
0.36 |
|
Debt to Equity Ratio |
0.62 |
Impressive |
Industrial Average |
0.56 |
|
Times Interest Earned |
(5.73) |
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 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 -5.73 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 0.38 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 Stable
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
8.11 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.08 |
Satisfactory |
Industrial Average |
1.12 |
|
Inventory Conversion Period |
156.38 |
|
|
|
|
Inventory Turnover |
2.33 |
Acceptable |
Industrial Average |
4.66 |
|
Receivables Conversion Period |
62.07 |
|
|
|
|
Receivables Turnover |
5.88 |
Impressive |
Industrial Average |
4.83 |
|
Payables Conversion Period |
15.26 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.88 and 4.62 in
2013 and 2012 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 2013
increased from 2012. 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 increased from 131 days at the
end of 2012 to 156 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 2.78 times in year 2012 to 2.33 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.08 times and 1.25
times in 2013 and 2012 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.60.87 |
|
UK Pound |
1 |
Rs.102.67 |
|
Euro |
1 |
Rs.81.70 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SDA |
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.