MIRA
INFORM REPORT
|
Report Date : |
15.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
CHIA TAI COMPANY LIMITED |
|
|
|
|
Registered Office : |
299-301 Songsawad Road, Samphantawong, Bangkok 10100 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
1983 |
|
|
|
|
Com. Reg. No.: |
0105526049913 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Exporter & Distributor of Agricultural products |
|
|
|
|
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 : |
Good |
|
Payment Behaviour : |
No complaints |
|
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, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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
CHIA TAI COMPANY
LIMITED
SUMMARY
BUSINESS ADDRESS : 299-301
SONGSAWAD ROAD,
SAMPHANTAWONG, BANGKOK
10100, THAILAND
TELEPHONE : [66] 2233-8191-9,
2639-4000
FAX : [66] 2237-1540,
2639-1804, 2237-1539, 2639-6063
E-MAIL ADDRESS : domestic_seed@chiataigroup.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1983
REGISTRATION NO. : 0105526049913 [Former: 4995/2526]
TAX ID NO. : 3101276015
CAPITAL REGISTERED : BHT.
400,000,000
CAPITAL PAID-UP : BHT.
300,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
MANU CHIARAVANOND, THAI
PRESIDENT AND
CHIEF EXECUTIVE OFFICER
NO. OF
STAFF : 600
LINES OF BUSINESS : AGRICULTURAL PRODUCTS
IMPORTER, EXPORTER
& DISTRIBUTOR
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH GOOD PERFORMANCE
HISTORY
The subject was
established on November
29, 1983 as
a private limited
company under the name
style CHIA TAI
COMPANY LIMITED, by
Chiaravanont family, who
is the founder of
CP Group of companies, in order to
operate as an importer, exporter and distributor
of agricultural products.
It currently employs
approximately 600 staff.
The subject’s registered
address is 299-301
Songsawad Rd., Samphantawong, Bangkok
10100, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Charan Chiaravanond |
|
Thai |
84 |
|
Mr. Montri Chiaravanond |
|
Thai |
82 |
|
Mr. Dhanin Chiaravanond |
|
Thai |
75 |
|
Mr. Wallop Chiaravanond |
|
Thai |
75 |
|
Mr. Pongthep Chiaravanond |
|
Thai |
65 |
|
Mr. Manu Chiaravanond |
|
Thai |
60 |
|
Mr. Manas Chiaravanond |
|
Thai |
58 |
|
Mr. Min Thienvorn |
|
Thai |
78 |
AUTHORIZED PERSON
Two of the
above directors can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Manu Chiaravanond is
the President and
Chief Executive Officer.
He is Thai
nationality with the
age of 60 years
old.
Mr. Manas Chiaravanond is
the Vice President
and Chief Operating
Officer.
He is Thai
nationality with the
age of 58
years old.
Mrs. Pa-aobkarn
Sribuaphanburim is the
Accounting Manager.
She is Thai
nationality.
Ms. Sunee Charnvannakul is
the Personnel Manager.
She is Thai
nationality.
Mr. Wichet Pornlertpong
is the General
Manager /Marketing Manager.
He is Thai
nationality.
Mr. Prapoj Vuthikornvipark is
the General Manager [Production].
He is Thai
nationality.
Ms. Mayuree Somrerkphol is
the General Manager [Crop
Protection].
She is Thai
nationality.
BUSINESS OPERATIONS
The subject was
engaged in agricultural
business, which can be
divided into 3
business areas as follows:
1. Seed Business
The subject has
developed over 350
hybrid varieties from its own
5 research stations
located three in
Thailand, one in
Indonesia and one
in Republic of
China. The subject
produces seed for flower
and vegetable worldwide
depending on suitable
and economics of
each crop. Its
products are sold
locally and also
exported worldwide, mainly
for tropical countries
in Asian region.
Its products are bitter gourd,
broccoli, cabbage, carrot,
cauliflower, Chinese cabbage,
Chinese kale, Chinese radish, coriander,
corn, cucumber, eggplant,
loofah, lettuce, melon,
mustard green, okra,
pak choy, pepper, pumpkin
& squash, tomato,
water convolvulus, watermelon
and etc. under
brand name AEROPLANE.
2. Fertilizer Business
The company markets a full range of fertilizer such as Ammonium
Sulphate, Urea and Compound
Fertilizer importing from
high quality fertilizer
and leading global
suppliers. The company’s
fertilizers are under brand names RABBIT,
AEROPLANE and SHOR FAH.
3. Crop Protection
Business
The subject serves
local market an environment
safe fungicides, herbicides,
insecticides, fungicide, fertilizer
and hormone for
all major crops.
The subject formulates 100
pesticide formulations liquids,
granules wetlable powders,
dusting powder and
some combination, product - butachar, 27.5%+
propanil 27.5% EC
[Butapro], as well as final
product packing, an
important aspect of
the service to
farmers.
IMPORT [COUNTRIES]
The products are imported
from Japan, United Kingdom,
Korea, Taiwan, Republic of China, Singapore, France,
Canada, Germany and Israel,
as well as
are purchased locally.
MAJOR SUPPLIER
[LOCAL]
Zeraim Gedera Ltd. : Israel
Chia Tai Cultivation
Technology Co., Ltd. : Thailand
Chia Tai Seed
Co., Ltd. : Thailand
DISTRIBUTION
Most of the
products are sold
locally to manufacturers, wholesalers
and end-users, while
vegetable and fruit
seeds are exported
to Japan, Republic
of China, Hong
Kong, Indonesia, Vietnam,
Malaysia, Taiwan, India, Pakistan, Laos, Cambodia, Myanmar, Singapore, Philippines, Nepal,
Bangladesh, Sri Lanka,
Middle East
MAJOR CUSTOMERS
|
- C.P. Yangoon Co.,
Ltd. |
: Myanmar |
|
- Dong Fong Chia
Tai Ltd. |
: Republic of China |
|
- Jiangsu Chia Tai
Ltd. |
: Republic of China |
|
- Chia Tai [Vietnam]
Co., Ltd. |
: Vietnam |
|
- PT. Tanindo Subor
Prima |
: Indonesia |
|
- Apichaya Flora Co.,
Ltd. |
: Thailand |
SUBSIDIARIES &
AFFILIATED COMPANIES
Chia Tai Produce
Co., Ltd.
Business Type :
Distributor of agricultural
products.
Chia Tai Cultivate
Technology Co., Ltd.
Business Type :
Manufacturer of agricultural
products.
South - East Agricultural Co.,
Ltd.
Business Type :
Manufacturer and distributor
of fertilizer.
Chon Charoen Farm
Co., Ltd.
Business Type :
Manufacturer & research
of seed.
Chia Tai Seed
Co., Ltd.
Business Type :
Importer & exporter
of seed, fertilizer
& etc.
Agrochemical Industry Co.,
Ltd.
Business Type :
Manufacturer & distributor
of crop protection
products.
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 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
L/C at sight
& T/T.
BANKING
The Siam Commercial
Bank Public Co., Ltd.
[Head Office
: 9 Ratchadapisek Rd.,
Ladyao, Jatujak, Bangkok
10900]
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok 10500]
Citibank, NA
[Bangkok Office : 82 North
Sathorn Rd., Bangrak,
Bangkok 10500]
Kasikornbank Public Co.,
Ltd.
[Chiang Kong
Branch : Songwad Rd.,
Samphantawong, Bangkok 10100]
EMPLOYMENT
The subject employs
approximately 600 staff.
[office staff and
workers]
LOCATION DETAILS
The premise is
owned for administrative office
in a 4
storey building of
2 row shop houses
at the heading
address. Premise is
located in commercial/residential area.
Warehouse is located
at 70 Moo 6,
Petchkasem Rd., T.
Omnoi, A. Krathumban,
Samutsakorn 74130, Tel:
[66] 2810-3031-7, Fax:
[66] 2810-3041, 2810-3050.
Branches : [Vegetable Research
Plantation]
Chiengmai Branch, 85 Moo
5, Nongkwai, Hangdong,
Chiengmai 50230.
Tel: [66] 53 441-479,
Fax: [66] 53 441-495
Karnchanaburi Branch, Muang
District, Kanchanaburi 71000.
Tel : [66] 01 846-0451
COMMENT
As one of
the Thailand’s largest
formulators of agricultural chemical,
Chia Tai is
able to meet farmers’ needs cost-effective and
efficient with high-quality
products and services.
It supplies and
distributes excellent
quality herbicides, fungicides,
insecticides, plant growth
regulators, foliar fertilizers
and foliar micronutrients.
It is a
well-known leader in
environmentally-friendly
crop protection, with a view
to ensuring greater
focus on the
needs, and satisfying
the wants of
the vegetable, field,
horticultural, and fruit
crop growers in
both Thai and
foreign markets. The
company formulates herbicides,
fungicides plant growth regulators, foliar fertilizers, and
micronutrients for local
distribution as well
as exporting some
of them to
the overseas markets
with a side
range of over 100 formulations in
emulsifiable concentrate [EC], granule
[G], wetlable powder
[WP] forms etc.
To date the company has developed over 350 hybrid variety for its own 5
research stations located three in Thailand, one in Indonesia and one in
China. Its products have well accepted
by domestic and worldwide customers. It
serves at its best to the Thai market, environment-safe and appropriate for all
major corps.
The subject maintains its leading player in the industry.
FINANCIAL INFORMATION
The capital was
registered at Bht.
10,000,000 divided into
100,000 shares of
Bht. 100 each.
The capital was
increased later as
followings:
Bht. 30,000,000
on July 16,
1992
Bht. 50,000,000
on December 26,
1995
Bht. 100,000,000
on June 29,
1999
Bht. 200,000,000
on June 27,
2001
Bht. 400,000,000
on February 13,
2009
The latest registered
capital was increased
to Bht. 400,000,000
divided into 4,000,000
shares of Bht. 100 each, with
the current capital
paid-up at Bht.
300,000,000.
MAIN SHAREHOLDERS
[as at May
15, 2013] at
Bht. 300 million of capitalization.
|
NAME |
HOLDING |
% |
|
Mr. Dhanin Chiaravanont Nationality: Thai Address : 88 Moo
17, Bangpleeyai, Bangplee, Samutprakarn
|
500,000 |
12.50 |
|
Mr. Sumeth Chiaravanont Nationality: Thai Address : 55 Sukhumvit
54 Rd., Prakanong,
Bangkok 10110 |
500,000 |
12.50 |
|
Mr. Montri Chiaravanont Nationality: Thai Address : 908 Sukhumvit
50 Rd., Prakanong,
Bangkok 10110 |
500,000 |
12.50 |
|
Mr. Charan Chiaravanont Nationality: Thai Address : 10 Kannayao,
Buengkum, Bangkok |
500,000 |
12.50 |
|
Mr. Cherdchai Chiaravanont Nationality: Thai Address : 68/17 Sukhumvit
63 Rd., Klongton,
Prakanong, Bangkok |
250,000 |
6.25 |
|
Mr. Kiat Chiaravanont Nationality: Thai Address : 1 Phaholyothin Rd.,
Ladyao, Bangkhen, Bangkok 10900 |
250,000 |
6.25 |
|
Mr. Wallop Chiaravanont Nationality: Thai Address : 1 Phaholyothin Rd.,
Ladyao, Bangkhen, Bangkok 10900 |
250,000 |
6.25 |
|
Mr. Apichart Chiaravanont Nationality: Thai Address : 856/35 Jatejamnong
Rd., Bangplasroy, Muang, Cholburi |
250,000 |
6.25 |
|
Other Shareholders |
1,000,000 |
25.00 |
Total Shareholders : 15
Share Structure [as
at May 15,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
15 |
4,000,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
15 |
4,000,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mr. Santi Maneewong No.
6182
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 |
290,810,628.94 |
286,791,567.70 |
410,403,692.55 |
|
Short-term Investment |
150,000,000.00 |
- |
- |
|
Trade Accounts and Other
Receivable |
1,279,092,696.52 |
2,944,985,438.42 |
871,431,667.42 |
|
Short-term Loan |
7,000,000.00 |
- |
- |
|
Inventories
|
4,482,451,551.55 |
5,256,913,759.99 |
3,143,494,508.86 |
|
Other Current Assets
|
14,469,275.04 |
12,983,600.60 |
1,257,936,318.87 |
|
|
|
|
|
|
Total Current Assets
|
6,223,824,152.05 |
8,501,674,366.71 |
5,683,266,187.70 |
|
|
|
|
|
|
Long-term Investment |
847,066,746.35 |
660,718,314.57 |
820,865,630.55 |
|
Fixed Assets |
1,135,695,270.23 |
1,157,195,902.18 |
774,710,220.57 |
|
Other Non-current Assets |
7,718,267.61 |
11,408,090.68 |
15,932,642.90 |
|
Total Assets |
8,214,304,436.24 |
10,330,996,674.14 |
7,294,774,681.72 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial
Institutions |
176,544,358.62 |
1,630,865,978.50 |
422,562,732.15 |
|
Trade Accounts and
Other Payable |
1,737,681,337.41 |
2,109,213,650.32 |
1,952,757,834.56 |
|
Accrued Income Tax |
164,046,583.23 |
152,275,564.76 |
223,973,376.30 |
|
Other Current Liabilities |
292,123,838.65 |
1,471,447,371.65 |
300,606,952.65 |
|
|
|
|
|
|
Total Current Liabilities |
2,370,396,117.91 |
5,363,802,565.23 |
2,899,900,895.66 |
|
Total Liabilities |
2,370,396,117.91 |
5,363,802,565.23 |
2,899,900,895.66 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share Capital :
Baht 100 par
value authorized and
issued share capital 4,000,000
shares |
400,000,000.00 |
400,000,000.00 |
400,000,000.00 |
|
|
|
|
|
|
Capital Paid |
300,000,000.00 |
300,000,000.00 |
300,000,000.00 |
|
Retained Earnings Statutory Reserve |
40,000,000.00 |
40,000,000.00 |
40,000,000.00 |
|
Unappropriated |
5,503,908,318.33 |
4,627,194,108.91 |
4,054,873,786.06 |
|
Total Shareholders' Equity |
5,843,908,318.33 |
4,967,194,108.91 |
4,394,873,786.06 |
|
|
|
|
|
|
Total Liabilities & Shareholders' Equity |
8,214,304,436.24 |
10,330,996,674.14 |
7,297,774,681.72 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
22,913,896,767.53 |
18,976,271,118.03 |
17,412,821,049.88 |
|
Others Income |
404,378,335.21 |
254,454,599.29 |
158,533,688.28 |
|
Total Revenues |
23,318,275,102.74 |
19,230,725,717.32 |
17,571,354,738.16 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
21,163,644,539.27 |
17,435,036,494.53 |
15,534,120,795.93 |
|
Selling Expenses |
161,769,199.71 |
178,662,785.06 |
214,069,920.86 |
|
Administrative Expenses |
608,234,700.73 |
529,894,333.03 |
512,067,433.28 |
|
Total Expenses |
21,933,648,439.71 |
18,143,593,612.62 |
16,260,258,150.07 |
|
|
|
|
|
|
Profit /[Loss] before Financial
Costs & Income Tax |
1,384,626,663.03 |
1,087,132,104.70 |
1,311,096,588.09 |
|
Financial Cost |
[26,917,640.66] |
[12,476,095.91] |
[11,741,870.37] |
|
Profit /[Loss] before Income Tax |
1,357,709,022.37 |
1,074,656,008.79 |
1,299,354,717.72 |
|
Income Tax |
[280,994,812.95] |
[302,335,685.94] |
[369,966,261.66] |
|
Net Profit / [Loss] |
1,076,714,209.42 |
772,320,322.85 |
929,388,456.06 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.63 |
1.59 |
1.96 |
|
QUICK RATIO |
TIMES |
0.73 |
0.60 |
0.44 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
20.18 |
16.40 |
22.48 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.79 |
1.84 |
2.39 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
77.31 |
110.05 |
73.86 |
|
INVENTORY TURNOVER |
TIMES |
4.72 |
3.32 |
4.94 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
20.37 |
56.65 |
18.27 |
|
RECEIVABLES TURNOVER |
TIMES |
17.91 |
6.44 |
19.98 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
29.97 |
44.16 |
45.88 |
|
CASH CONVERSION CYCLE |
DAYS |
67.71 |
122.54 |
46.24 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
92.36 |
91.88 |
89.21 |
|
SELLING & ADMINISTRATION |
% |
3.36 |
3.73 |
4.17 |
|
INTEREST |
% |
0.12 |
0.07 |
0.07 |
|
GROSS PROFIT MARGIN |
% |
9.40 |
9.46 |
11.70 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
6.04 |
5.73 |
7.53 |
|
NET PROFIT MARGIN |
% |
4.70 |
4.07 |
5.34 |
|
RETURN ON EQUITY |
% |
18.42 |
15.55 |
21.15 |
|
RETURN ON ASSET |
% |
13.11 |
7.48 |
12.74 |
|
EARNING PER SHARE |
BAHT |
358.90 |
257.44 |
309.80 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.29 |
0.52 |
0.40 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.41 |
1.08 |
0.66 |
|
TIME INTEREST EARNED |
TIMES |
51.44 |
87.14 |
111.66 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
20.75 |
8.98 |
|
|
OPERATING PROFIT |
% |
27.37 |
(17.08) |
|
|
NET PROFIT |
% |
39.41 |
(16.90) |
|
|
FIXED ASSETS |
% |
(1.86) |
49.37 |
|
|
TOTAL ASSETS |
% |
(20.49) |
41.62 |
|
ANNUAL GROWTH : SATISFACTORY
An annual sales growth is 20.75%. Turnover has increased from THB
18,976,271,118.03 in 2011 to THB 22,913,896,767.53 in 2012. While net profit
has increased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
9.40 |
Deteriorated |
Industrial Average |
30.51 |
|
Net Profit Margin |
4.70 |
Impressive |
Industrial Average |
2.06 |
|
Return on Assets |
13.11 |
Impressive |
Industrial Average |
6.17 |
|
Return on Equity |
18.42 |
Satisfactory |
Industrial Average |
19.23 |
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 9.4%. 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 4.7%,
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
13.11%, 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. When compared with the
industry average, it was lower, the company's figure is 18.42%.
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 |
2.63 |
Impressive |
Industrial Average |
1.49 |
|
Quick Ratio |
0.73 |
|
|
|
|
Cash Conversion Cycle |
67.71 |
|
|
|
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 2.63 times in 2012, increased from 1.59 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 0.73 times in 2012,
increased from 0.6 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 68 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.29 |
Impressive |
Industrial Average |
0.64 |
|
Debt to Equity Ratio |
0.41 |
Impressive |
Industrial Average |
1.81 |
|
Times Interest Earned |
51.44 |
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 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 51.44 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 0.29 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 |
20.18 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
2.79 |
Satisfactory |
Industrial Average |
2.99 |
|
Inventory Conversion Period |
77.31 |
|
|
|
|
Inventory Turnover |
4.72 |
Impressive |
Industrial Average |
4.08 |
|
Receivables Conversion Period |
20.37 |
|
|
|
|
Receivables Turnover |
17.91 |
Impressive |
Industrial Average |
5.98 |
|
Payables Conversion Period |
29.97 |
|
|
|
The company's Account Receivable Ratio is calculated as 17.91 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 110 days at the
end of 2011 to 77 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 3.32 times in year 2011 to 4.72 times
in year 2012.
The company's Total Asset Turnover is calculated as 2.79 times and 1.84 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.62.28 |
|
|
1 |
Rs.103.67 |
|
Euro |
1 |
Rs.85.18 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.