MIRA INFORM REPORT
|
Report Date : |
16.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
NATIONAL STARCH AND CHEMICAL [ |
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Registered Office : |
11th Floor, |
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Country : |
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|
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Financials (as on) : |
31.012.2013 |
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Date of Incorporation : |
01.07.2003 |
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Com. Reg. No.: |
0115546005547 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Distributor and Exporter of Modified Starch. |
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No of Employees : |
600 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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Payment Behaviour : |
No complaints |
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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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
With a well-developed infrastructure, a free-enterprise
economy, generally pro-investment policies, and strong export industries,
|
Source
: CIA |
Company name
NATIONAL STARCH AND CHEMICAL [THAILAND] LTD.
SUMMARY
BUSINESS ADDRESS : 11th FLOOR,
BANGNA TOWER C,
40/14 MOO
12, BANGNA-TRAD ROAD,
BANGKAEW, BANGPLEE,
SAMUTPRAKARN 10540,
THAILAND
TELEPHONE : [66] 2312-0530-45, 2725-0200
FAX : [66] 2312-0258,
2312-0547, 2751-9014
E-MAIL ADDRESS : boonmee.wattanaruangrong@nstarch.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2003
REGISTRATION NO. : 0115546005547
TAX ID NO. : 3030962270
CAPITAL REGISTERED : BHT.
606,800,000
CAPITAL PAID-UP : BHT.
606,800,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
RISHANDRAN PILLAY, SOUTH
AFRICAN
VICE PRESIDENT AND CHIEF EXECUTIVE OFFICER
NO. OF STAFF : 600
LINES OF BUSINESS : MODIFIED STARCH
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
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 July 1, 2003 as a
private limited company
under the name
style NATIONAL STARCH
AND CHEMICAL [THAILAND]
LTD. by a
merger between National
Starch & Chemical
[Thailand] Ltd., the registered
no. 0105499000882 and National
Adhesives Ltd., the
registered no. 0105513005025,
with the business
objective to manufacture
and market modify
starch to both domestic
and international markets.
It currently employs
approximately 600 staff.
In 2013, it
is a wholly
owned subsidiary of
Ingredion [Thailand] Company
Limited.
The subject’s registered
address is 11th
Flr., Bangna Tower
C, 40/14 Moo 12, Bangna-Trad Rd., Bangkaew, Bangplee,
Samutprakarn 10540, and this is the
subject’s current business address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Rishandran Pillay |
|
South African |
48 |
|
Mr. Boonmee Wattanaruangrong |
|
Thai |
53 |
|
Mr. Matthew Robert Galvanoni |
|
American |
42 |
|
Mr. Richard John O’Shanna |
|
American |
57 |
|
Mr. Richard Allen Duda |
|
American |
46 |
AUTHORIZED PERSON
Any two of the above
mentioned directors can jointly sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Rishandran
Pillay is the
Vice President & Chief Executive
Officer.
He is South
African nationality with
the age of
48 years old.
Mr. Boonmee
Wattanaruangrong is the
Vice President &
Agri-Business Director.
He is Thai
nationality with the
age of 53
years old.
Mr. Santhad
Saensuk a Thai
is the Factory
Manager [Rayong Factory].
He is Thai
nationality.
Mr. Kovit Larpchit
is the Factory
Manager [Karasin Factory].
He is Thai
nationality.
Mrs. Thanyarat
Visaikom is the
Senior Business Development
Manager.
She is Thai
nationality.
Mr. Phairote Chowtivicha
is the Procurement
Manager.
He is Thai
nationality.
Ms. Mukda Jirawatanaphalin is
the Human Resources Manager.
She is Thai
nationality.
Mr. Manu Manomaneerat
is the MIS Manager.
He is Thai nationality.
BUSINESS OPERATION
The subject’s activity is a manufacturer and
distributor of modified starch,
a key ingredient for foods & beverage, gloves/condom, paper,
corrugating, textile, gypsum, building materials, cosmetics, adhesives,
personal cares, pharmaceutical, and pharmaceuticals productions.
Tapioca starch is
extracted from cassava
root and goes
through a process
of drying, packaging
and inspection. With
modern technology and
expertise, it is
converted into a valuable
specialty resource. Cassava is processed into
a large variety
of vital components
used in a
range of items
essential to daily
lives.
Food Products
National Starch’s range
of over 200
specialty food starches
provides key processing,
texture, flavour and
marketing advantages for
a wide range
of consumer products.
They are used
for:
- Thickening sauces.
- Creating creaminess and
viscosity in dairy
products.
- Enhancing softness
in drinks and
thin sauces.
- Providing expansion in
snack foods.
- Ensuring crispiness and
adhesion in battered
foods.
- Providing an
alternative to
expensive ingredients such as gum
arabic, casement and
gelatine.
- Binding
meat and seafood
products.
- Encapsulation in
spray-dried flavours and creamers.
- Providing a
high source of
dietary fiber in
noodles, baked food,
health beverages and
cereals.
Health Care
In the health
care and pharmaceutical industries,
the subject produces wide
range of specialty
starches which have been
used as:
- Carriers, binders
and disintegrants in
tablets and capsules.
- Coating
for tablets
- Thickeners in
liquid dosage medicants
- dusting
powder for surgical
gloves.
Industrial
Applications
National Starch’s range
of specialty starches
are used in a variety
of industrial applications,
such as paper-making
corrugating, tissues, textiles
and biodegradable packaging.
They are used
for:
- Increasing strength
and productivity in
paper production.
- Improving printability and
strength for paper
and board, such
as food packaging and
office paper.
- Providing water
resistance, strength and
improved productivity in
corrugated boxes.
- Enhancing softness
and bulk in
tissues.
- Producing biodegradable, starch - based packaging and
loose - fill materials.
MAJOR BRANDS
“INGREDION”
PRODUCTION CAPACITY
100,000 tons/year [Rayong
Factory]
120,000 tons/year [Kalasin
Factory]
PURCHASE
80% of raw
materials such as cassava roots
are purchased from
over 5,000 local planters, the remaining 20% is
imported from Japan,
Germany, Republic of
China, India, Taiwan
and Brazil.
SALES [LOCAL]
20% of the
products is sold
locally to manufacturers
and wholesalers.
EXPORT [COUNTRIES]
80% of the
products is exported
to Australia, U.S.A., New Zealand,
Germany, Malaysia, Republic
of China, Singapore,
Columbia, Hong Kong, Japan,
Canada, Myanmar, Korea,
Taiwan, South Africa, Indonesia, India and the countries
in Europe.
The subject currently has
over 500 customers
both local and
overseas.
MAJOR CUSTOMERS
|
Company |
Country |
|
Advance Agro Public
Co., Ltd. |
: Thailand |
|
Medigloves Ltd. |
: Thailand |
|
Safeskin Corporation [Thailand]
Ltd. |
: Thailand |
|
Ansell [Thailand] Ltd. |
: Thailand |
|
Thai Paper Products
Co., Ltd. |
: Thailand |
|
Kraft Foods Company |
: U.S.A. |
|
Ingredion Incorporated |
: |
|
Johnson & Johnson
Medical Mfg. Sdn.
Bhd. |
: |
|
Bunge |
: |
|
Carter Holt Harvey Penrose Mill |
: |
|
Alpina Productalimenticios SA. |
: Columbia |
|
Food & Cosmetic
Systems Co., Ltd. |
: Thailand |
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 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
L/C at sight
or T/T.
BUSINESS TRANSACTION
In term of sales,
the products are
sold to local customers
by cash & credit with the
maximum credit given at
30-60 days, and
to overseas customers
by L/C and
T/T. The subject
is not found
to have problem
on its account
receivable.
BANKING
The Siam
Commercial Bank Public
Co., Ltd.
[Head Office
: 9 Ratchadapisek Rd.,
Ladyao, Jatujak, Bangkok
10900]
[Kalasin Branch : Muang, Kalasin
Province]
Citibank N.A.
[Bangkok Office:
127 South Sathorn
Rd., Thungmahamek, Sathorn, Bangkok
10120]
The Hong Kong
& Shanghai Banking
Corp. Ltd.
[Bangkok Office : 64
Silom Rd., Silom,
Bangrak, Bangkok 10500]
Bangkok Bank
Public Co., Ltd.
EMPLOYMENT
The subject employs approximately
600 staff. [office
staff and factory
workers]
LOCATION DETAILS
The premise is rented
for administrative office at
the heading address. Premise is
located in residential area.
Factories are
located at the following addresses:
- 202
Moo 6, Sukhumvit Rd., Km.
275, T. Thungkwarykin, A.
Klang, Rayong 21110
Tel:
[66] 38 669-171-4
Fax: [66] 38
669-020 on 400,000
sq.m. of area.
- 41
Moo 7, Theenanon Rd.,
T. Najaraya, A.
Muang, Kalasin 46000
Tel:
[66] 43 813-927-8
Fax : [66] 43 813-929
on 1,280,000 sq.m.
of area.
Warehouse :
- 18/8
Moo 4, Bangna-Trad Road,
K.M. 23, Bangsaothong, Samutprakarn 10540.
- 112/2
Moo 3, T. Thungsukhla, A. Sriracha, Chonburi
20230.
COMMENT
National Starch and
Chemical, a member
of the ICI
Group, is a
world leader in
natural and synthetic
polymer technology. The
company has a
network of more
than 125 manufacturing
and customer service
centers, located in
35 countries, covering
6 continents.
Achieving the ISO 9002
accreditation that confirms
the company’s production
plants of high
quality tapioca products. It commits to quality and
service which are
essential to satisfy
demanding worldwide markets.
Improvement of industrial
sector has been
driven by growth
and expansion of
various industries. The
subject’s business outlook
in 2014 is
promising.
FINANCIAL INFORMATION
The capital was registered at
Bht. 264,500,000 divided into
2,645,000 shares of
Bht. 100 each with
fully paid.
The capital was increased
later as follows:
Bht. 413,800,000
on May 30,
2013
Bht. 606,800,000
on August 26,
2014
The latest registered capital
was increased to
Bht. 606,800,000 divided
into 6,068,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE : [as at
August 11, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ingredion [Thailand] Company
Limited Nationality: Thai Address : 43/1
Moo 3, T. Seekiw,
A. Seekiw,
Nakornratchasima |
6,067,998 |
100.00 |
|
Ingredion Incorporated Nationality: American Address : 5
Westbrook Corporate Center, Westchester, Illinois,
U.S.A. |
1 |
- |
|
Brunob IV B.V. Nationality: Dutch Address : Velperweg
76 6824 BM
Arnhem, The
Netherlands |
1 |
- |
Total Shareholders
: 3
Share Structure
[as at August
11, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
6,067,998 |
100.00 |
|
Foreign |
2 |
2 |
- |
|
Total |
3 |
6,068,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mr. Sukit Vongthavaravat No. 7816
BALANCE SHEET [BAHT]
The latest
financial figures published
for December 31, 2013,
2012 & 2011
were :
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
315,882,736 |
372,896,335 |
1,843,500,418 |
|
Short-term Deposit to Financial Institutions |
- |
575,000,000 |
- |
|
Trade Accounts Receivable |
1,173,186,283 |
943,284,885 |
690,327,863 |
|
Other Receivable |
31,309,697 |
45,191,700 |
12,710,952 |
|
Inventories |
471,548,734 |
458,745,629 |
436,963,665 |
|
Other Current Assets
|
46,660,716 |
106,263,230 |
48,029,594 |
|
|
|
|
|
|
Total Current Assets
|
2,038,588,166 |
2,501,381,779 |
3,031,532,492 |
|
Long-term Lending to Related Company |
1,207,467,000 |
1,086,809,400 |
- |
|
Fixed Assets |
1,569,718,563 |
1,653,321,288 |
1,707,538,024 |
|
Intangible Assets |
43,627,908 |
59,137,369 |
56,412,755 |
|
Other Non-current Assets
|
2,867,283 |
3,031,883 |
2,732,872 |
|
Total Assets |
4,862,268,920 |
5,303,681,719 |
4,798,216,143 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts Payable |
853,209,060 |
854,356,841 |
761,824,029 |
|
Other Payable |
168,156,297 |
256,098,249 |
39,014,820 |
|
Accrued Expenses |
- |
- |
148,385,994 |
|
Accrued Income Tax |
94,253,652 |
73,611,857 |
82,382,424 |
|
Other Current Liabilities |
9,453,656 |
61,289,145 |
15,587,032 |
|
|
|
|
|
|
Total Current Liabilities |
1,125,072,665 |
1,245,356,092 |
1,047,194,299 |
|
Long-term Loan from Related Company |
2,859,864,662 |
- |
- |
|
Employees’ Benefit Obligation
|
68,515,509 |
62,770,124 |
55,786,428 |
|
Total Liabilities |
4,053,452,836 |
1,308,126,216 |
1,102,980,727 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share capital, Bht.
100 par value
authorized, issued and
fully paid share capital 4,138,000 shares in 2013;
2,645,000 shares
in 2012 & 2011 |
413,800,000 |
264,500,000 |
264,500,000 |
|
|
|
|
|
|
Capital Paid |
413,800,000 |
264,500,000 |
264,500,000 |
|
Premium on Shares Capital |
3,026,510 |
3,026,510 |
3,026,510 |
|
Retained Earning Appropriated for
Statutory Reserve |
41,380,000 |
26,450,000 |
23,423,490 |
|
Unappropriated |
350,609,574 |
3,701,578,993 |
3,404,285,416 |
|
Total Shareholders' Equity |
808,816,084 |
3,995,555,503 |
3,695,235,416 |
|
Total Liabilities &
Shareholders' Equity |
4,862,268,920 |
5,303,681,719 |
4,798,216,143 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
8,706,476,942 |
8,199,943,032 |
7,751,157,078 |
|
Gain on Exchange
Rate |
140,994,392 |
81,047,789 |
31,997,822 |
|
Other Income |
90,299,544 |
81,400,558 |
56,254,695 |
|
Total Revenues |
8,937,770,878 |
8,362,391,379 |
7,839,409,595 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Gods
Sold |
7,164,376,812 |
6,610,743,948 |
6,333,686,375 |
|
Selling Expenses |
209,454,813 |
253,979,589 |
248,186,741 |
|
Administrative Expenses |
464,989,613 |
455,961,053 |
414,024,826 |
|
Total Expenses |
7,838,821,238 |
7,320,684,590 |
6,995,897,942 |
|
|
|
|
|
|
Profit before Financial Cost & Income Tax |
1,098,949,640 |
1,041,706,789 |
843,511,653 |
|
Financial Cost |
[43,224,691] |
[5,752,527] |
[5,762,020] |
|
Profit before Income
Tax |
1,055,724,949 |
1,035,954,262 |
837,749,633 |
|
Income Tax |
[226,452,535] |
[184,339,175] |
[207,675,542] |
|
Net Profit / [Loss] |
829,272,414 |
851,615,087 |
630,074,091 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.81 |
2.01 |
2.89 |
|
QUICK RATIO |
TIMES |
1.35 |
1.55 |
2.43 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.55 |
4.96 |
4.54 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.79 |
1.55 |
1.62 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
24.02 |
25.33 |
25.18 |
|
INVENTORY TURNOVER |
TIMES |
15.19 |
14.41 |
14.49 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
49.18 |
41.99 |
32.51 |
|
RECEIVABLES TURNOVER |
TIMES |
7.42 |
8.69 |
11.23 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
43.47 |
47.17 |
43.90 |
|
CASH CONVERSION CYCLE |
DAYS |
29.74 |
20.15 |
13.79 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
82.29 |
80.62 |
81.71 |
|
SELLING & ADMINISTRATION |
% |
7.75 |
8.66 |
8.54 |
|
INTEREST |
% |
0.50 |
0.07 |
0.07 |
|
GROSS PROFIT MARGIN |
% |
20.37 |
21.36 |
19.43 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
12.62 |
12.70 |
10.88 |
|
NET PROFIT MARGIN |
% |
9.52 |
10.39 |
8.13 |
|
RETURN ON EQUITY |
% |
102.53 |
21.31 |
17.05 |
|
RETURN ON ASSET |
% |
17.06 |
16.06 |
13.13 |
|
EARNING PER SHARE |
BAHT |
200.40 |
321.97 |
238.21 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.83 |
0.25 |
0.23 |
|
DEBT TO EQUITY RATIO |
TIMES |
5.01 |
0.33 |
0.30 |
|
TIME INTEREST EARNED |
TIMES |
25.42 |
181.09 |
146.39 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
6.18 |
5.79 |
|
|
OPERATING PROFIT |
% |
5.50 |
23.50 |
|
|
NET PROFIT |
% |
(2.62) |
35.16 |
|
|
FIXED ASSETS |
% |
(5.06) |
(3.18) |
|
|
TOTAL ASSETS |
% |
(8.32) |
10.53 |
|
ANNUAL GROWTH: ACCEPTABLE
An annual sales growth is 6.18%. Turnover has increased from THB
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
20.37 |
Impressive |
Industrial Average |
16.16 |
|
Net Profit Margin |
9.52 |
Impressive |
Industrial Average |
2.70 |
|
Return on Assets |
17.06 |
Impressive |
Industrial Average |
4.28 |
|
Return on Equity |
102.53 |
Impressive |
Industrial Average |
9.53 |
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 20.37%. 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
figure is 9.52%, higher figure when compared with those
of its average competitors in the same industry, indicated that business was an
efficient operators 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
17.06%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profits 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 102.53%, 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 Downtrend
Return on Equity Downtrend
LIQUIDITY :
IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
1.81 |
Impressive |
Industrial Average |
1.11 |
|
Quick Ratio |
1.35 |
|
|
|
|
Cash Conversion Cycle |
29.74 |
|
|
|
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 1.81 times in 2013, decreased from 2.01 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 1.35 times in 2013,
decreased from 1.55 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 30 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.83 |
Acceptable |
Industrial Average |
0.58 |
|
Debt to Equity Ratio |
5.01 |
Risky |
Industrial Average |
1.40 |
|
Times Interest Earned |
25.42 |
Impressive |
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 25.43 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 0.83 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
5.55 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.79 |
Impressive |
Industrial Average |
1.58 |
|
Inventory Conversion Period |
24.02 |
|
|
|
|
Inventory Turnover |
15.19 |
Impressive |
Industrial Average |
7.01 |
|
Receivables Conversion Period |
49.18 |
|
|
|
|
Receivables Turnover |
7.42 |
Impressive |
Industrial Average |
5.66 |
|
Payables Conversion Period |
43.47 |
|
|
|
The company's Account Receivable Ratio is calculated as 7.42 and
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 25 days at the
end of 2012 to 24 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 14.41 times in year 2012 to 15.19
times in year 2013.
The company's Total Asset Turnover is calculated as 1.79 times and 1.55
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 Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.65 |
|
|
1 |
Rs.98.53 |
|
Euro |
1 |
Rs. 78.15 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
ANK |
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.