MIRA
INFORM REPORT
|
Report Date : |
25.07.2014 |
IDENTIFICATION DETAILS
|
Correct Name : |
ROHM AND
HAAS CHEMICAL [ |
|
|
|
|
Registered Office : |
14th-16th
Floor, White Group
Building 2, 75
Soi Saengchan-Rubia, Sukhumvit 42 Rd., Phrakanong,
Klongtoey, Bangkok 10110 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
05.01.1995 |
|
|
|
|
Com. Reg. No.: |
0105538001465 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
engaged
in manufacturing and
distributing of polyacrylic acid
and latex emulsions
for coating, adhesives,
agricultural and water treatment, as
well as importing
and distributing of specialty chemicals |
|
|
|
|
No of Employees : |
80 (Approximately) |
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 |
|
|
|
|
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
Thailand ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand achieved steady growth due largely to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Unemployment, at less than 1% of the labor force, stands as one of the lowest levels in the world, which puts upward pressure on wages in some industries. Thailand also attracts nearly 2.5 million migrant workers from neighboring countries. The Thai government 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
ROHM AND
HAAS CHEMICAL [THAILAND] LIMITED
SUMMARY
BUSINESS
ADDRESS : 14th -16th FLOOR,
WHITE GROUP BUILDING
2,
75 SOI
SAENGCHAN-RUBIA, SUKHUMVIT 42
ROAD,
PHRAKANONG, KLONGTOEY,
BANGKOK 10110,
THAILAND
TELEPHONE : [66] 2365-7000
FAX :
[66] 2381-1249
E-MAIL
ADDRESS : ssujira@dow.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1995
REGISTRATION
NO. : 0105538001465
TAX
ID NO. : 3011519929
CAPITAL REGISTERED : BHT. 500,000,000
CAPITAL PAID-UP : BHT.
364,000,000
SHAREHOLDER’S PROPORTION : AMERICAN : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
TOD ANDREW SUTTON,
AMERICAN
MANAGING DIRECTOR
NO.
OF STAFF : 80
LINES
OF BUSINESS : INDUSTRIAL CHEMICALS
MANUFACTURER, DISTRIBUTOR
& 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 January
5, 1995 as
a private limited
company under the
name style ROHM
AND HAAS CHEMICAL
[THAILAND] LIMITED, by
American Groups, in
order to manufacture and market
various kinds of
specialty chemicals for both
domestic and overseas
markets. It received
privilege promotional from
the Board of
Investment in 1996. It
currently employs approximately
80 staff.
The subject is a
wholly owned subsidiary
of Rohm and
Haas Equity Corporation,
in U.S.A., and is also
a member of
The Dow Chemical
Group, the world’s
largest manufacturers of
specialty chemicals.
The subject’s registered
address was initially at
29th Floor, Thai
Wah Tower 2,
21/157-158 South Sathorn
Rd., Thungmahamek, Sathorn,
Bangkok 10120.
On
September 14, 2009
the subject’s registered
address was relocated
to 14th-16th Floor,
White Group Building
2, 75 Soi
Saengchan-Rubia, Sukhumvit 42
Rd., Phrakanong, Klongtoey, Bangkok 10110,
and this is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Vorapong Worasuntarosot |
|
Thai |
55 |
|
Mr. Jirasak Singmaneechai |
[x] |
Thai |
58 |
|
Mr. Tod Andrew Sutton |
|
American |
52 |
|
Mr. Keriel Richard Thornton |
[x] |
American |
44 |
AUTHORIZED PERSON
One of the
above directors [x]
can jointly sign
with anyone of
the rest directors
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Tod Andrew
Sutton is the Managing
Director.
He is American
nationality with the
age of 52
years old.
Ms. Sutathip Prewyothin
is the Accounting
Manager.
She is Thai
nationality.
Ms. Jittima Deeprasertwong is
the Factory Manager.
She is Thai nationality.
BUSINESS OPERATIONS
The subject is engaged
in manufacturing and
distributing of polyacrylic acid
and latex emulsions
for coating, adhesives,
agricultural and water treatment,
as well as
importing and distributing
of specialty chemicals.
PRODUCTION CAPACITY
Approximately 30,000 tons
per annum
PURCHASE
100% of finished
products is imported
from United States
of America, United Kingdom,
France, Malaysia, Republic
of China, Taiwan
and Singapore, while
its raw chemical
for the production
are purchased from
suppliers both in
domestic and overseas.
MAJOR SUPPLIER
The Dow chemical Company : U.S.A.
SALES [LOCAL]
80% of its products
especially polyacrylic and
latex emulsion are sold locally to manufacturers, wholesalers
and end-users.
EXPORT [COUNTRY]
20% of its products is
exported to Singapore,
Taiwan, Japan, Hong Kong, Korea, Vietnam,
Republic of China,
Australia, Myanmar, India,
Hong Kong, Malaysia
and Indonesia.
MAJOR CUSTOMER
Dow Chemical [Thailand] Ltd. : Thailand
PARENT COMPANY
Rohm and Hass
Equity Corporation
Address : 100 Independents
Mall West Philadelphia,
U.S.A.
RELATED AND AFFILIATED
COMPANY
The Dow
Chemical Group consists
of:
Dow Chemical [Thailand]
Ltd.
Dow AgroScience [Thailand]
Ltd.
Carbide Chemical [Thailand]
Ltd.
SCG-DOW Group
MTP HP JV
[Thailand] Ltd.
LITIGATION
Bankruptcy and
Receivership
There are no
litigation on bankruptcy
and receivership cases filed
against the subject
found at Legal
Execution Department for
the past five
years.
Others
There are no
legal suits filed
against the subject
for the past
two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BUSINESS TRANSACTION
The products are
sold by cash and
credit, with the maximum credit given
at 60 days. The
subject is not
found to have
problem on its
account receivable.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office :
333 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
EMPLOYMENT
The subject employs
approximately 80 staff.
[office staff and
factory worker]
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is located
in commercial area.
Factory is located
at 17 Soi G
14, Pakornsongkrohrat Rd.,
T. Mabtapud, A. Muang,
Rayong 21150, Thailand
Tel: [66] 38
683-564, 38 685-119-22
Fax: [66] 38
683-565.
Branch office is
located at 120
Moo 2, Soi
Wadkae, Sukhumvit Rd.,
T. Pakklongplagod, A. Phrasamutjaedi, Samutprakarn
10290.
COMMENT
The subject is a
member of Rohm
and Hass Equity
Corporation, U.S.A. It is
one of the
world’s largest manufacturers of specialty chemicals. Its sophisticate technology and research produces materials find them an application in
a variety of
major markets. The subject
unveiled plans to
upgrade and consolidate
its enterprise resource
planning infrastructure to
better support the
growth of its business.
The subject’s business is
well-established in Thailand,
serving a variety
of crop markets with
a growing portfolio
of crop protection
products. The strength of local consumption is the most important engine
to boost the company’s products. In
general, the subject enjoys
steady growth and
its business is
very promising in
line with the
demand of the
products from related
industries.
NOTE
Refer to your
given the subject’s
name “Dow Rohm
Haas Chemical [Thailand]
Ltd.”, please be
informed that the correct
name is “Rohm
and Haas Chemical
[Thailand] Limited”.
FINANCIAL INFORMATION
The capital was
registered at Bht.
2,000,000 divided into
20,000 shares of
Bht. 100 each.
The capital was
increased later as
followings:
Bht. 100,000,000
on December 14,
1995
Bht. 500,000,000
on January 7,
1999
The latest registered
capital was increased
to Bht. 500,000,000 divided
into 5,000,000 shares
of Bht. 100
each, with a
current capital paid-up at
Bht. 364,000,000 or
1,000,000 shares of
Bht. 100 each
and 4,000,000 shares
of Bht. 66
each.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 29, 2014]
|
NAME |
HOLDING |
% |
|
Rohm and Hass
Equity Corporation Nationality: American Address : 100
Independents Mall West
Philadelphia, U.S.A. |
4,999,990 |
100.00 |
|
Ms. Joan A.
Schuller Nationality: American Address : 100 Independents Mall
West
Philadelphia, U.S.A. |
2 |
- |
|
Mr. David Daniel
Glass, Jr. Nationality: American Address : 21
Winsor Park, 2279
Hongkyo Rd.,
Shanghai, Republic of
China |
2 |
- |
|
Mr. Belur Krishna
Murthy Sethuram Nationality: Indian Address : 3199
Rama 4 Rd.,
Klongton,
Klongtoey, Bangkok |
2 |
- |
|
Mr. Paul Gerrard
Corbett Nationality: American Address : 513
Apple Lane Harley Swiss,
Pennsylvania U.S.A. |
2 |
- |
|
Mr. Robert James
Everett Nationality: American Address : PO. Box
8007, Camberwell North Victoria,
Australia |
2 |
- |
Total Shareholders : 6
Share Structure [as
at April 29,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
6 |
5,000,000 |
100.00 |
|
Total |
6 |
5,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Nutchalee Boonyakarnkul No.
3126
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 |
37,201,562 |
24,510,978 |
6,385,095 |
|
Trade Accounts & Other Receivable |
728,656,826 |
680,658,869 |
824,072,796 |
|
Short-term Loan to Related Company |
1,573,200,000 |
1,851,800,000 |
1,097,200,000 |
|
Inventories |
462,048,830 |
430,479,443 |
440,041,964 |
|
Refundable Value Added Tax |
11,462,686 |
30,745,016 |
27,517,073 |
|
Other Current Assets
|
11,985,930 |
5,819,702 |
4,435,104 |
|
|
|
|
|
|
Total Current Assets
|
2,824,555,834 |
3,024,014,008 |
2,399,652,032 |
|
|
|
|
|
|
Fixed Assets |
172,309,826 |
189,038,445 |
201,362,343 |
|
Intangible Assets |
48,353 |
67,068 |
85,783 |
|
Deferred Income Tax Assets |
1,816,642 |
1,450,485 |
5,131,579 |
|
Other Non-current Assets |
1,554,394 |
1,449,766 |
1,415,138 |
|
Total Assets |
3,000,285,049 |
3,216,019,772 |
2,607,646,875 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft |
- |
85,222 |
- |
|
Trade Accounts & Other Payable |
949,136,764 |
1,298,805,670 |
692,120,844 |
|
Accrued Income Tax |
22,175,612 |
4,267,754 |
49,500,514 |
|
Other Current Liabilities |
9,478,168 |
1,400,411 |
1,851,102 |
|
|
|
|
|
|
Total Current Liabilities |
980,790,544 |
1,304,559,057 |
743,472,460 |
|
|
|
|
|
|
Obligation for Employee
Benefits |
1,038,728 |
361,300 |
808,197 |
|
Total Liabilities |
981,829,272 |
1,304,920,357 |
744,280,657 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, and
issued share capital 5,000,000 shares
in 2013; 2012 & 2011 |
500,000,000 |
500,000,000 |
500,000,000 |
|
|
|
|
|
|
Capital Paid |
364,000,000 |
364,000,000 |
364,000,000 |
|
Retained Earning Unappropriated |
1,654,455,777 |
1,547,099,415 |
1,499,366,218 |
|
Total Shareholders' Equity |
2,018,455,777 |
1,911,099,415 |
1,863,366,218 |
|
Total Liabilities &
Shareholders' Equity |
3,000,285,049 |
3,216,019,772 |
2,607,646,875 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
2,797,846,246 |
2,852,515,719 |
2,864,084,503 |
|
Other Income |
33,477,667 |
59,650,326 |
40,667,546 |
|
Total Revenues |
2,831,323,913 |
2,912,166,045 |
2,904,752,049 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,491,924,076 |
2,659,599,430 |
2,411,190,973 |
|
Selling Expenses |
94,022,805 |
71,120,021 |
113,258,519 |
|
Administrative Expenses |
108,025,720 |
119,843,952 |
94,647,545 |
|
Total Expenses |
2,693,972,601 |
2,850,563,403 |
2,619,097,037 |
|
Profit before Financial Cost & Income Tax |
137,351,312 |
61,602,642 |
285,655,012 |
|
Financial Cost |
[57,000] |
[67,805] |
[2,243] |
|
Profit before Income Tax |
137,294,312 |
61,534,837 |
285,652,769 |
|
Income Tax |
[29,937,950] |
[13,801,640] |
[90,839,167] |
|
Net Profit / [Loss] |
107,356,362 |
47,733,197 |
194,813,602 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.88 |
2.32 |
3.23 |
|
QUICK RATIO |
TIMES |
2.38 |
1.96 |
2.59 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
16.24 |
15.09 |
14.22 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.93 |
0.89 |
1.10 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
67.68 |
59.08 |
66.61 |
|
INVENTORY TURNOVER |
TIMES |
5.39 |
6.18 |
5.48 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
95.06 |
87.10 |
105.02 |
|
RECEIVABLES TURNOVER |
TIMES |
3.84 |
4.19 |
3.48 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
139.02 |
178.25 |
104.77 |
|
CASH CONVERSION CYCLE |
DAYS |
23.71 |
(32.07) |
66.86 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
89.07 |
93.24 |
84.19 |
|
SELLING & ADMINISTRATION |
% |
7.22 |
6.69 |
7.26 |
|
INTEREST |
% |
0.00 |
0.00 |
0.00 |
|
GROSS PROFIT MARGIN |
% |
12.13 |
8.85 |
17.23 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.91 |
2.16 |
9.97 |
|
NET PROFIT MARGIN |
% |
3.84 |
1.67 |
6.80 |
|
RETURN ON EQUITY |
% |
5.32 |
2.50 |
10.45 |
|
RETURN ON ASSET |
% |
3.58 |
1.48 |
7.47 |
|
EARNING PER SHARE |
BAHT |
29.49 |
13.11 |
53.52 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.33 |
0.41 |
0.29 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.49 |
0.68 |
0.40 |
|
TIME INTEREST EARNED |
TIMES |
2,409.67 |
908.53 |
127,354.00 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(1.92) |
(0.40) |
|
|
OPERATING PROFIT |
% |
122.96 |
(78.43) |
|
|
NET PROFIT |
% |
124.91 |
(75.50) |
|
|
FIXED ASSETS |
% |
(8.85) |
(6.12) |
|
|
TOTAL ASSETS |
% |
(6.71) |
23.33 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -1.92%. Turnover has decreased from THB 2,852,515,719.00
in 2012 to THB 2,797,846,246.00 in 2013. While net profit has increased from
THB 47,733,197.00 in 2012 to THB 107,356,362.00 in 2013. And total assets has
decreased from THB 3,216,019,772.00 in 2012 to THB 3,000,285,049.00 in 2013.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
12.13 |
Deteriorated |
Industrial Average |
52.22 |
|
Net Profit Margin |
3.84 |
Satisfactory |
Industrial Average |
4.90 |
|
Return on Assets |
3.58 |
Satisfactory |
Industrial Average |
4.28 |
|
Return on Equity |
5.32 |
Acceptable |
Industrial Average |
7.28 |
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 12.13%. 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 3.84%.
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 3.58%.
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 5.32%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
EXCELLENT
LIQUIDITY RATIO
|
Current Ratio |
2.88 |
Impressive |
Industrial Average |
2.12 |
|
Quick Ratio |
2.38 |
|
|
|
|
Cash Conversion Cycle |
23.71 |
|
|
|
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 2.88 times in 2013, increased from 2.32 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 2.38 times in 2013,
increased from 1.96 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 24 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.33 |
Impressive |
Industrial Average |
0.53 |
|
Debt to Equity Ratio |
0.49 |
Impressive |
Industrial Average |
0.88 |
|
Times Interest Earned |
2,409.67 |
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 2409.68 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 0.33 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
16.24 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.93 |
Satisfactory |
Industrial Average |
1.16 |
|
Inventory Conversion Period |
67.68 |
|
|
|
|
Inventory Turnover |
5.39 |
Satisfactory |
Industrial Average |
6.90 |
|
Receivables Conversion Period |
95.06 |
|
|
|
|
Receivables Turnover |
3.84 |
Acceptable |
Industrial Average |
6.11 |
|
Payables Conversion Period |
139.02 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.84 and 4.19 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
decreased from 2012. 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 increased from 59 days at the
end of 2012 to 68 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 6.18 times in year 2012 to 5.39 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.93 times and 0.89
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.60.00 |
|
UK Pound |
1 |
Rs.102.19 |
|
Euro |
1 |
Rs.80.68 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.