MIRA
INFORM REPORT
|
Report Date : |
14.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
MODERN DYESTUFFS
& PIGMENTS CO., LTD. |
|
|
|
|
Registered Office : |
2nd Floor, Town In
Town Building, 324 Ladprao
94 Road, Wangthonglang, Bangkok 10310,
|
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
02.01.1990 |
|
|
|
|
Com. Reg. No.: |
0105533000223 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of
dyestuff and pigment |
|
|
|
|
No. of Employees : |
190 |
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 : |
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 and address
MODERN
DYESTUFFS & PIGMENTS
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 2nd FLOOR, TOWN
IN TOWN BUILDING,
324 LADPRAO
94 ROAD, WANGTHONGLANG,
BANGKOK 10310,
THAILAND
TELEPHONE : [66] 2530-3890-5
FAX :
[66] 2539-2488
E-MAIL
ADDRESS : mdp@moderndyestuffs.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1990
REGISTRATION
NO. : 0105533000223 [Former : 22/2533]
TAX
ID NO. : 3101809978
CAPITAL REGISTERED : BHT. 450,000,000
CAPITAL PAID-UP : BHT.
450,000,000
SHAREHOLDER’S PROPORTION : THAI :
49.84%
FOREIGN :
50.16%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
LUECHA UPRAPAKORN, THAI
PRESIDENT
NO.
OF STAFF : 190
LINES
OF BUSINESS : DYESTUFFS &
PIGMENTS
MANUFACTURER, DISTRIBUTOR
& EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was
established on January
2, 1990 as
a private limited
company under the
name style MODERN
DYESTUFFS & PIGMENTS
CO., LTD. by
Thai and Taiwanese groups.
MDP has set
up its excellent
fundamental through the
continuously utilizing of
advanced technologies and
modern equipment together
with computerized management
system to manufacture
dyestuffs and pigments
products for leather,
textile and paper
industries both domestic
and export markets
with the promotional
privilege granted by the Board
of Investment in
June 1990. The
subject currently employs
approximately 190 staff.
It is one
of the leading
dye manufacturers in
Asia, specialized in
leather, textile & paper dyes.
Its products are
currently under production
and free from
banned amines in order to
comply with the
German’s legislature in
term of product
compassion.
Awards/Certifications
In 1997 :
ISO 9001 achievement
award was obtained.
In 2001 :
ISO 14001 achievement
award was obtained
In 2002 :
Overseas Taiwanese SMEs Award
was obtained.
In 2008 : TLS
8001 : 2003 the Thai
Labour Stanadrd obtained
In 2009 :
OHSAS 18001 : 2007, TIS 18001 :
1999 certification
In 2010 : Certificate
of Energy Management
Systems from Thailand
Productivity
Association
In 2011 :
Thailand Green Corporate
certificate from Thailand
Industrial Development
Bureau.
The subject’s registered
address is 2nd Flr.,
Town In Town
Building, 324 Ladprao
94 Rd., Wangthonglang, Bangkok
10310, and this
is the company’s
current operation address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Wu Chen
Li Hsia |
|
Taiwanese |
65 |
|
Mr. Luecha Uprapakorn [Richard, L.H. Wu] |
[x] |
Thai |
68 |
|
Ms. Amika Uprapakorn |
|
Thai |
31 |
Note:
Mr. Richard, L.H. Wu changed
his name to
Mr. Luecha Uprapakorn,
on April 28,
2010.
AUTHORIZED PERSON
Only the mentioned
director [x] can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Luecha Uprapakorn [Richard L.H.
Wu] is the
President.
He is Thai
nationality with the
age of 68
years old.
He has been
in this position
since 1990.
Ms. Amika Uprapakorn
is the Vice
President.
She is Thai
nationality with the
age of 31
years old.
Mr. Boonlua Aksornlertsawad is
the G.M. and
Factory Manager.
He is Thai
nationality.
Ms. Samorn Wongwattanakul is
the Sales and
Marketing Manager.
She is Thai
nationality.
Ms. Jintana Prasutchai
is the Account
& Finance Manager.
She is
Thai nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
of dyestuff and
pigment. Its products
consist of leather
dyes, textile dyes,
paper dyes, PU dyes,
dyes for inkjet,
pigment, chemical [DCA
properties], aluminium dyes, nanotech
chemical, finishing [wool
& leather coating and
liquid chemical]. For
textile dyes, the
subject manufactures for
the European major
chemicals companies both
ODM and OEM
customers with more
than 70 countries
worldwide.
The products and
brands are as
follows:
Products Brand
Leather Dyes “MODERLAN”
Textile Dyes :
- Acid Dyes “MODER ACID”,
“MODER CRON”,
“MODERSET”
- Direct Dyes “MODERDIRECT”
- Reactive Dyes “MODERSOL”, “MODERZOL”,
“HIFA”
- Paper Dyes [Anioic
Direct Dyes] “MODERSOL”
- PU Dyes “MODERPUM”
- Pigment
[pigment leather/ pigment textile] “MODER”
- Dyes for
Inkjet “MAXBOOM”
Chemicals :
- DCA [De-Color Agent for
waste water
treatment]
- Hydrophilic Finishing
Agent for
Polyester
Fabric “MODERPHIL”
- Fragrance Chemical “MODERN FLOURA”
- Wool Dyeing
Chemical “MODERSET”
- Aluminium Dyes “MODERANDAL”
- Nanotech Chemicals “NANO S PLUS”, “MAX
CHROMA COAT”
“MAX SP
DYE”
Finishing:
- Wool & leather coating,
liquid chemical “MODER”
PRODUCTION
Dyestuff : 10,000
tons/year
PURCHASE
50% of raw materials
mainly dyestuff intermediates
and chemical are
imported from Japan, India, Republic of China, Taiwan, Singapore, Switzerland, United States of
America and Germany,
and another 50%
is purchased from
local suppliers.
MAJOR SUPPLIER
BASF [Thai] Ltd. : Thailand
Srithepthai Chemical Co.,
Ltd. : Thailand
SALES [LOCAL]
20% of the
products is sold
locally to wholesalers,
manufacturers and end-users.
EXPORT [COUNTRY]
80% of the
products is exported
to over 200
customers in 70 countries
worldwide, such as
Japan, Taiwan, Hong
Kong, India, Malaysia,
Philippines, Spain, United
States of America, Italy, Singapore, Vietnam, Republic of
China, Indonesia, Brazil,
Switzerland, France, Netherlands,
United Kingdom, Australia,
Germany, Africa and
etc.
MAJOR CUSTOMERS
Organic Dyestuffs Corporation : U.S.A.
Hong Phat New
Trading Co., Ltd. : Vietnam
Four Colors Acquisitions Inc. : U.S.A.
SUBSIDIARY & AFFILIATED COMPANY
Max Development International
Co., Ltd.
Country : Thailand
Business Type : Importer
and distributor of
industrial chemicals
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
IRICO’S DATABASE 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 & T/T.
Exports are against
T/T.
BANKING
Kasikornbank Public
Co., Ltd.
Krung Thai Bank
Public Co., Ltd.
[Srinakarin Branch
: Srinakarin Rd.,
Praves, Bangkok 10250]
EMPLOYMENT
The subject employs
approximately 190 staff. [office,
sales staff and
factory workers]
LOCATION DETAILS
The premise is
rented for administrative office
on 2nd Floor,
in a 6
storey building on approximately 80
square meters at
the heading address.
Premise is located
in commercial/residential area.
The factory is
located at Eastern
Seaboard, 688/3 Moo 1, Chonburi-Rayong Rd.,
T. Klongkiw, A.
Banbueng, Chonburi 20170.
Tel. : [66]
38 742-324, 38 742-462-3,
38 158-864-8
Fax : [66]
38 742-325.
The total area
of factory is on
102,400 square meters
plot of land,
and also located
in the Eastern
coast of the
Gulf of Thailand.
COMMENT
The subject has set up its excellent
fundamental through the
continuous utilizing of advanced technology and modern equipment
together with computerized management
system. As well, it has
technical cooperation with the
traditional dye
manufacturers from Europe,
Japan and Taiwan.
As one of
the most sophisticated
and advanced production
plant, the subject
has been trusted
by its customers
around the world.
Subject is one of
the world leaders
in high quality dyestuffs and
pigment industries.
With many new
products have been
introduced to the
market each year.
This enabled the subject
to sustain a leading
company in the industry.
FINANCIA INFORMATION
The capital was
registered at Bht.
25,000,000 divided into
250,000 shares of
Bht. 100 each.
The capital was increased
later as followings:
Bht. 50,000,000 on
March 27, 1990
Bht. 100,000,000
on October 26,
1994
Bht. 200,000,000
on May 13,
1999
Bht. 400,000,000 on
April 4, 2002
Bht. 450,000,000 on
February 19, 2004
The latest registered
capital was increased
to Bht. 450,000,000
divided into 45,000,000
shares of Bht.
10 each with
fully paid.
MAIN SHAREHOLDERS : [as at
July 10, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Luecha Uprapakorn Nationality: Thai Address : 324
Ladprao 94 Rd.,
Pubpla,
Wangthonglang, Bangkok |
17,939,556 |
39.87 |
|
Mrs. Wu Chen Li Hsia Nationality: Taiwanese Address : 324
Ladprao 94 Rd.,
Pubpla,
Wangthonglang, Bangkok |
9,623,767 |
21.39 |
|
Ms. Amika Uprapakorn Nationality: Thai Address : 324
Ladprao 94 Rd.,
Pubpla,
Wangthonglang, Bangkok |
4,013,056 |
8.92 |
|
Mr. Wu Chong Cher Nationality: Taiwanese Address : 324
Ladprao 94 Rd.,
Pubpla,
Wangthonglang, Bangkok |
3,635,360 |
8.08 |
|
Ms. Wu Pin Chee Nationality: Taiwanese Address : 324
Ladprao 94 Rd.,
Pubpla,
Wangthonglang, Bangkok |
3,449,087 |
7.66 |
|
Mr. Chai Cheng
Fu Nationality: Taiwanese Address : 48
Lane 198 Dong-Der
Rd., Taoyuan, Taiwan |
2,050,000 |
4.55 |
|
Other Shareholders |
4,289,174 |
9.53 |
Total Shareholders : 41
Share Structure [as
at July 10,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
17 |
22,426,206 |
49.84 |
|
Foreign |
24 |
22,573,794 |
50.16 |
|
Total |
41 |
45,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Tipawal Nananuwat
No. 3459
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Cash and Cash
Equivalents |
2,768,582 |
6,709,467 |
27,227,198 |
|
Trade Accounts & Other Receivable |
179,824,599 |
164,521,728 |
230,975,181 |
|
Short-term Lending |
9,700,000 |
17,200,000 |
21,200,000 |
|
Inventories
|
319,924,261 |
395,226,765 |
340,180,456 |
|
Other Current Assets
|
6,995,136 |
6,640,974 |
22,586,834 |
|
|
|
|
|
|
Total Current Assets
|
519,212,578 |
590,298,934 |
642,166,669 |
|
Fixed Assets |
248,087,679 |
289,049,791 |
274,494,175 |
|
Intangible Assets |
113,213,598 |
100,027,470 |
83,434,988 |
|
Other Non-current Assets
- Deposit |
709,755 |
616,130 |
557,830 |
|
Total Assets |
881,223,610 |
979,992,325 |
1,000,653,662 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
169,455,619 |
276,176,402 |
286,555,982 |
|
Trade Accounts Payable
& Other Payable |
85,022,576 |
83,868,555 |
158,098,206 |
|
Current Portion of
Long-term Loan |
19,574,490 |
20,245,088 |
- |
|
Current Portion of Financial Lease / Hire- purchase Contract Liabilities |
1,282,754 |
1,363,985 |
553,932 |
|
Accrued Income Tax |
- |
3,424,781 |
13,698,476 |
|
Other Current Liabilities |
557,017 |
1,129,826 |
1,491,349 |
|
|
|
|
|
|
Total Current Liabilities |
275,892,456 |
386,208,637 |
460,397,945 |
|
Long-term Loan -
Net of Current Portion |
8,227,441 |
28,754,392 |
- |
|
Financial Lease/Hire-purchase Contract
Liabilities - Net of
Current Portion |
737,305 |
1,958,897 |
1,061,919 |
|
Reserve for Long-term Employee Benefits |
16,536,156 |
13,276,061 |
11,846,346 |
|
Total Liabilities |
301,393,358 |
430,197,987 |
473,306,210 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share capital
45,000,000 shares |
450,000,000 |
450,000,000 |
450,000,000 |
|
|
|
|
|
|
Capital Paid |
450,000,000 |
450,000,000 |
450,000,000 |
|
Retained Earning Appropriated -
Statutory Reserve |
16,495,088 |
16,495,088 |
16,495,088 |
|
Unappropriated |
113,335,164 |
83,299,250 |
60,852,364 |
|
Total Shareholders' Equity |
579,830,252 |
549,794,338 |
527,347,452 |
|
Total Liabilities & Shareholders' Equity |
881,223,610 |
979,992,325 |
1,000,653,662 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Sales |
755,789,593 |
758,633,811 |
924,538,363 |
|
Other Income Gain on Exchange Rate |
4,092,444 |
2,060,686 |
- |
|
Others |
9,389,459 |
10,323,854 |
6,853,427 |
|
Total Revenues |
769,271,496 |
771,018,351 |
931,391,790 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
588,041,099 |
604,149,802 |
696,708,285 |
|
Selling Expenses |
26,403,710 |
19,529,348 |
34,011,482 |
|
Administrative Expenses |
111,597,281 |
103,772,846 |
111,264,597 |
|
Loss on Exchange Rate |
- |
- |
12,509,747 |
|
Total Expenses |
726,042,090 |
727,451,996 |
854,494,111 |
|
|
|
|
|
|
Profit before Finance
Cost & Income Tax |
43,229,406 |
43,566,355 |
76,897,679 |
|
Finance Cost |
[13,193,492] |
[13,164,221] |
[11,371,379] |
|
|
|
|
|
|
Profit before Income
Tax |
30,035,914 |
30,402,134 |
65,526,300 |
|
Income Tax |
- |
[7,955,248] |
[19,726,709] |
|
|
|
|
|
|
Net Profit / [Loss] |
30,035,914 |
22,446,886 |
45,799,591 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.88 |
1.53 |
1.39 |
|
QUICK RATIO |
TIMES |
0.70 |
0.49 |
0.61 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.05 |
2.62 |
3.37 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.86 |
0.77 |
0.92 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
198.58 |
238.78 |
178.22 |
|
INVENTORY TURNOVER |
TIMES |
1.84 |
1.53 |
2.05 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
86.84 |
79.16 |
91.19 |
|
RECEIVABLES TURNOVER |
TIMES |
4.20 |
4.61 |
4.00 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
52.77 |
50.67 |
82.83 |
|
CASH CONVERSION CYCLE |
DAYS |
232.65 |
267.26 |
186.58 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
77.80 |
79.64 |
75.36 |
|
SELLING & ADMINISTRATION |
% |
18.26 |
16.25 |
15.71 |
|
INTEREST |
% |
1.75 |
1.74 |
1.23 |
|
GROSS PROFIT MARGIN |
% |
23.98 |
22.00 |
25.38 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.72 |
5.74 |
8.32 |
|
NET PROFIT MARGIN |
% |
3.97 |
2.96 |
4.95 |
|
RETURN ON EQUITY |
% |
5.18 |
4.08 |
8.68 |
|
RETURN ON ASSET |
% |
3.41 |
2.29 |
4.58 |
|
EARNING PER SHARE |
BAHT |
0.67 |
0.50 |
1.02 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.34 |
0.44 |
0.47 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.52 |
0.78 |
0.90 |
|
TIME INTEREST EARNED |
TIMES |
3.28 |
3.31 |
6.76 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(0.37) |
(17.94) |
|
|
OPERATING PROFIT |
% |
(0.77) |
(43.35) |
|
|
NET PROFIT |
% |
33.81 |
(50.99) |
|
|
FIXED ASSETS |
% |
(14.17) |
5.30 |
|
|
TOTAL ASSETS |
% |
(10.08) |
(2.06) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -0.37%. Turnover has decreased from THB
758,633,811.00 in 2011 to THB 755,789,593.00 in 2012. While net profit has increased
from THB 22,446,886.00 in 2011 to THB 30,035,914.00 in 2012. And total assets
has decreased from THB 979,992,325.00 in 2011 to THB 881,223,610.00 in 2012.
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
23.98 |
Acceptable |
Industrial
Average |
40.70 |
|
Net Profit Margin |
3.97 |
Satisfactory |
Industrial
Average |
5.11 |
|
Return on Assets |
3.41 |
Satisfactory |
Industrial
Average |
4.22 |
|
Return on Equity |
5.18 |
Acceptable |
Industrial
Average |
7.30 |
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 23.98%. 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 3.97%.
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 3.41%.
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 5.18%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Downtrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.88 |
Impressive |
Industrial
Average |
1.72 |
|
Quick Ratio |
0.70 |
|
|
|
|
Cash Conversion Cycle |
232.65 |
|
|
|
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 1.88 times in 2012, increased from 1.53 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 0.7 times in 2012,
increased from 0.49 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 233 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.34 |
Impressive |
Industrial
Average |
0.39 |
|
Debt to Equity Ratio |
0.52 |
Impressive |
Industrial
Average |
0.65 |
|
Times Interest Earned |
3.28 |
Impressive |
Industrial
Average |
2.13 |
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 3.28 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 0.34 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 Downtrend
Times Interest Earned Downtrend
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.05 |
Impressive |
Industrial
Average |
0.38 |
|
Total Assets Turnover |
0.86 |
Impressive |
Industrial
Average |
0.82 |
|
Inventory Conversion Period |
198.58 |
|
|
|
|
Inventory Turnover |
1.84 |
Deteriorated |
Industrial
Average |
5.15 |
|
Receivables Conversion Period |
86.84 |
|
|
|
|
Receivables Turnover |
4.20 |
Impressive |
Industrial
Average |
2.38 |
|
Payables Conversion Period |
52.77 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.20 and 4.61 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 239 days at the
end of 2011 to 199 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 1.53 times in year 2011 to 1.84 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.86 times and 0.77
times in 2012 and 2011 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.52 |
|
|
1 |
Rs.101.48 |
|
Euro |
1 |
Rs.84.11 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to
overcome financial difficulties seems comparatively below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.