MIRA INFORM REPORT
|
Report Date : |
21.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
GLOBAL CHEMICAL COMPANY LIMITED |
|
|
|
|
Registered Office : |
376 Moo 4, Bangpoo Industrial Estate, Sukhumvit Road, T. Praeksa, A. Muang, Samutprakarn 10280 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
14.09.1978 |
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|
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Com. Reg. No.: |
0115521000363 |
|
|
|
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Legal Form : |
Private Limited Company |
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|
|
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Line of Business : |
Subject is engaged in manufacturing, distributing and exporting Zinc chemicals |
|
|
|
|
No of Employees : |
200 |
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 |
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Payment Behaviour : |
Slow But Correct |
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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 – 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
GLOBAL CHEMICAL COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 376
MOO 4, BANGPOO
INDUSTRIAL ESTATE,
SUKHUMVIT ROAD,
T. PRAEKSA, A. MUANG,
SAMUTPRAKARN 10280,
THAILAND
TELEPHONE : [66] 2324-0473-5,
2324-0868
FAX :
[66] 2324-0472,
2709-3969
E-MAIL
ADDRESS : export@glochem.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1978
REGISTRATION
NO. : 0115521000363 [Former
: SOR. POR.
68]
TAX
ID NO. : 3271000069
CAPITAL REGISTERED : BHT. 76,000,000
CAPITAL PAID-UP : BHT.
76,000,000
SHAREHOLDER’S PROPORTION : THAI :
5.11%
FOREIGN
: 94.89%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
RAYMOND LEENIP, AMERICAN
MANAGING DIRECTOR
NO. OF STAFF : 200
LINES
OF BUSINESS : ZINC
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 September
14, 1978 as
a private limited
company under the name style GLOBAL CHEMICAL COMPANY LIMITED by
Thai and
foreign groups, in order
to produce Zinc
chemicals to both domestic
and international markets. It currently employs
approximately 200 staff.
The subject was
certified ISO 900 : 2000
by Moody International
[Thailand] Co., Ltd.
on July 7,
2005.
The subject’s registered
address was initially
at 525/176 Moo
1, Sukhumvit Rd.,
T. Samrongnua, A. Muang, Samutprakarn
10270.
On March 24,
1987, the subject’s
registered address was
relocated to 376
Moo 4, Bangpoo Industrial Estate,
Sukhumvit Rd., T. Praeksa,
A. Muang, Samutprakarn 10280,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
NAME |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Raymond Leenip |
[x] |
American |
67 |
|
Mrs. Florence Nip Wong |
|
Chinese |
64 |
|
Mrs. Kanokvorawan Leenip |
[x] |
Thai |
54 |
|
Mrs. Niki Nip Rabier |
|
American |
61 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Raymond Leenip
is the Managing
Director.
He is American
nationality with the
age of 67 years
old.
Mrs. Kanokvorawan Leenip
is the Deputy
Managing Director.
She is Thai
nationality with the
age of 54
years old.
Mr. Somboon Somchaikulsap is
the Export Sales
Manager.
He is Thai
nationality.
Mr. Kittisak Phujit is
the Local Sales
Manager.
He is Thai
nationality.
Ms. Pak-ampai Jiraprapakarn is
the Factory Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing, distributing
and exporting Zinc
chemicals, e.g. Zinc Ammonium
Chloride, Zinc Chloride,
Zinc Oxide Active, Zinc
Sulphate, Zinc Carbonate
and etc., mainly supply
to rubber, latex,
cosmetics, tires, shoes [insole/outsole] and
pharmaceutical industries.
Company’s
products are as follows:
Zinc Chemical
1. Zinc Ammonium Chloride:
1.Double salts
2. Triple salts
3 .Triple salts with wetting agent
4. Galvanizing flux
Application field : Galvanizing
2. Zinc Chloride:
1. Granular
2. Solution
Application field : Dry cell, Water Treatment
and etc.
3. Zinc Oxide:
1. Zinc oxide Active
2. Zinc Oxide transparent
3. Zinc Oxide RA
Application field : Rubber products, Latex, Glue
and etc.
4. Zinc Sulphate:
1. Zinc Sulphate Monohydrate
2. Zinc Sulphate Heptahydrate
Application field :
Animal feed, Fertilizers,
Paper, Rayon, Textile,
Glue, Pesticide spray, Water
treatment and etc.
5. Zinc Carbonate:
1. Zinc Carbonate Industrial grade
2. Zinc Carbonate B.P.C. grade
Application field : Cosmetic,
Pharmaceutical Products and
etc.
The products are
supplied to various
industries such as
rubber, latex, adhesive,
agro chemical, water
treatment, textile, paper,
cosmetic, pharmaceutical and
etc.
MAJOR BRAND
“GCC”
The subject has
three laboratories and
a small pilot plant in
its two manufacturing
plants for quality
control, new product
development, application research,
testing and process
improvement.
PURCHASE
80% of the
raw material mainly
base chemical and
specialty chemical are
purchased from local
suppliers and agents,
the remaining 20%
is imported directly
from Japan, Republic
of China, Singapore,
U.S.A., Germany and
Taiwan.
DISTRIBUTION
60% of the
products is exported to
France, United Kingdom,
Germany, Africa, Australia,
Malaysia, Japan, New
Zealand, Pakistan, Philippines,
India, Singapore, Spain,
Turkey, Vietnam, Korea,
Hong Kong, Italy,
Sri Lanka, Indonesia
and others, the
remaining 40% is sold
locally by wholesales to
end-users and dealers
all over the
country.
AFFILIATED/RELATED 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 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
or T/T.
BUSINESS
TRANSACTION
In term of
sales, most of
the products are
sold by credit,
with the maximum
credit given at
30-60 days. The subject is found to have late payment
from its customers but they can negotiate.
BANKING
Bangkok Bank Public
Co., Ltd.
Head Office : 333 Silom
Rd., Silom, Bangrak,
Bangkok 10500
Samrong Branch : 1788
Sukhumvit Rd., Samrongnua,
Muang, Samutprakarn 10270
EMPLOYMENT
The subject employs
approximately 200 staff
comprising office staff,
sales staff, chemists
and engineers.
LOCATION
DETAILS
The premise is
owned for administrative office
and factory I
on 4,800 square meters
of area at the heading
address. Premise is
located in industrial
area.
Factory II is
located at 545
Moo 4, Bangpoo
Industrial Estate, Sukhumvit
Rd.,
T. Praekasa, A. Muang, Samutprakarn
10280.
COMMENT
The subject grows steadily and
diversifies into industrial
phosphates via its
patented process. The products
are of high quality and more competitive. With well equipped laboratories and
strict quality control, its
products are widely accepted
by customers in the large area of industrial sectors both
domestic and international markets.
Domestic consumption of zinc chemical products in the future would continue growing at
unsaturation demand from
local industries.
Despite industrial downturn,
subject also maintains
a solid business.
FINANCIAL
INFORMATION
The capital was
initially registered at
Bht. 1,200,000 divided
into 1,000 shares
of Bht. 1,200
each.
The capital was
increased later as
follows:
Bht. 4,080,000
on June 4,
1982
Bht. 9,000,000
on May 4,
1989
Bht. 60,000,000
on November 22,
1995
Bht. 76,000,000
on December 25,
1997
The latest registered
capital was increased
to Bht. 76,000,000
divided into 760,000
shares of Bht.
100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Raymond Leenip Nationality: American Address : 149 Soi
Bangna-Trad 16, Bangna, Bangkok |
377,974 |
49.73 |
|
Mrs. Florence Nip
Wong Nationality: Chinese Address : 2/F,
On Kwai Bldg.,
Whampoa Estata Block C,
7 Man Tai
St Hung Hum,
Kowloon, Hong Kong |
171,604 |
22.58 |
|
Mrs. Sing Nip Nationality: Chinese Address : 2/F,
On Kwai Bldg.,
Whampoa Estata Block C, 7
Man
Tai St Hung
Hum,
Kowloon, Hong Kong |
171,604 |
22.58 |
|
Mrs. Kanokvorawan Leenip Nationality: Thai Address : 149
Soi Bangna-Trad 16,
Bangna, Bangkok |
38,000 |
5.00 |
|
Mrs. Pakampai Jiraprapakarn Nationality: Thai Address : 509
Srinakarin Rd., Bangkaew,
Bangplee,
Samutprakarn |
816 |
0.11 |
|
Mr. Lerwuth Leenip Nationality: Thai Address : 149
Soi Bangna-Trad 16, Bangna,
Bangkok |
1 |
- |
|
Mr. Kornkris Leenip Nationality: Thai Address : 149 Soi Bangna-Trad 16, Bangna, Bangkok |
1 |
- |
Total Shareholders : 7
Share
Structure [as at
April 30, 2013]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
38,818 |
5.11 |
|
Foreign |
3 |
721,182 |
94.89 |
|
Total |
7 |
760,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Mangkorn Kanchanasay No.
3467
Note:
The 2013 financial
statement has not
yet been declared
to the public,
by Commercial Registration
Department during investigation. As
soon as it
is available, we
will arrange to
send it without delay.
BALANCE
SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
41,305,952.96 |
37,492,304.45 |
67,034,214.60 |
|
Short-term Investment |
26,111,444.21 |
75,600,000.00 |
20,136,571.96 |
|
Trade Accounts & Other Receivable |
63,829,187.24 |
57,509,118.91 |
62,513,042.27 |
|
Inventories |
64,605,973.06 |
25,206,642.00 |
42,349,474.00 |
|
|
|
|
|
|
Total Current Assets
|
195,852,557.47 |
195,808,065.36 |
192,033,302.83 |
|
|
|
|
|
|
Fixed Assets |
132,977,135.56 |
139,612,507.99 |
125,682,577.48 |
|
Other Non-current Assets |
173,205.24 |
173,205.24 |
173,205.24 |
|
Total Assets |
329,002,898.27 |
335,593,778.59 |
317,889,085.55 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts & Other Payable |
31,658,772.86 |
33,391,265.98 |
33,265,462.74 |
|
Accrued Income Tax |
- |
1,799,248.63 |
3,994,777.98 |
|
|
|
|
|
|
Total Current Liabilities |
31,658,772.86 |
35,190,514.61 |
37,260,240.72 |
|
Total Liabilities |
31,658,772.86 |
35,190,514.61 |
37,260,240.72 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 760,000 shares |
76,000,000.00 |
76,000,000.00 |
76,000,000.00 |
|
|
|
|
|
|
Capital Paid |
76,000,000.00 |
76,000,000.00 |
76,000,000.00 |
|
Premium on Share Capital |
4,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning - Unappropriated
|
217,344,125.41 |
220,403,263.98 |
200,628,844.83 |
|
Total Shareholders' Equity
|
297,344,125.41 |
300,403,263.98 |
280,628,844.83 |
|
Total Liabilities &
Shareholders' Equity |
329,002,898.27 |
335,593,778.59 |
317,889,085.55 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
380,669,047.96 |
387,292,511.71 |
388,866,127.05 |
|
Other Income |
6,977,067.70 |
8,112,313.06 |
6,129,378.79 |
|
Total Revenues |
387,646,115.66 |
395,404,824.77 |
394,995,505.84 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
321,083,330.88 |
315,811,975.17 |
298,780,770.70 |
|
Selling Expenses |
4,116,743.17 |
4,774,541.11 |
4,341,066.98 |
|
Administrative Expenses |
47,475,038.96 |
46,045,343.44 |
46,808,810.25 |
|
Total Expenses |
372,675,113.01 |
366,631,859.72 |
349,930,647.93 |
|
|
|
|
|
|
Profit / Loss] before Finance Costs & Income Tax |
14,971,002.65 |
28,772,965.05 |
45,064,857.91 |
|
Finance Costs |
[62,485.84] |
[70,338.25] |
[185,005.35] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax |
14,905,816.81 |
28,702,626.80 |
44,879,852.56 |
|
Income Tax |
[3,967,655.38] |
[8,928,207.65] |
[13,823,550.77] |
|
Net Profit / [Loss] |
10,940,861.43 |
19,774,419.15 |
31,056,301.79 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
6.19 |
5.56 |
5.15 |
|
QUICK RATIO |
TIMES |
4.15 |
4.85 |
4.02 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.86 |
2.77 |
3.09 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.16 |
1.15 |
1.22 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
73.44 |
29.13 |
51.74 |
|
INVENTORY TURNOVER |
TIMES |
4.97 |
12.53 |
7.06 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
61.20 |
54.20 |
58.68 |
|
RECEIVABLES TURNOVER |
TIMES |
5.96 |
6.73 |
6.22 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
35.99 |
38.59 |
40.64 |
|
CASH CONVERSION CYCLE |
DAYS |
98.66 |
44.74 |
69.77 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
84.35 |
81.54 |
76.83 |
|
SELLING & ADMINISTRATION |
% |
13.55 |
13.12 |
13.15 |
|
INTEREST |
% |
0.02 |
0.02 |
0.05 |
|
GROSS PROFIT MARGIN |
% |
17.49 |
20.55 |
24.74 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.93 |
7.43 |
11.59 |
|
NET PROFIT MARGIN |
% |
2.87 |
5.11 |
7.99 |
|
RETURN ON EQUITY |
% |
3.68 |
6.58 |
11.07 |
|
RETURN ON ASSET |
% |
3.33 |
5.89 |
9.77 |
|
EARNING PER SHARE |
BAHT |
14.40 |
26.02 |
40.86 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.10 |
0.10 |
0.12 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.11 |
0.12 |
0.13 |
|
TIME INTEREST EARNED |
TIMES |
239.59 |
409.07 |
243.59 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(1.71) |
(0.40) |
|
|
OPERATING PROFIT |
% |
(47.97) |
(36.15) |
|
|
NET PROFIT |
% |
(44.67) |
(36.33) |
|
|
FIXED ASSETS |
% |
(4.75) |
11.08 |
|
|
TOTAL ASSETS |
% |
(1.96) |
5.57 |
|
ANNUAL
GROWTH : RISKY
An annual sales growth is -1.71%. Turnover has decreased from THB
387,292,511.71 in 2011 to THB 380,669,047.96 in 2012. While net profit has
decreased from THB 19,774,419.15 in 2011 to THB 10,940,861.43 in 2012. And total
assets has decreased from THB 335,593,778.59 in 2011 to THB 329,002,898.27 in
2012.
PROFITABILITY
: ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
17.49 |
Deteriorated |
Industrial Average |
40.70 |
|
Net Profit Margin |
2.87 |
Acceptable |
Industrial Average |
5.11 |
|
Return on Assets |
3.33 |
Satisfactory |
Industrial Average |
4.22 |
|
Return on Equity |
3.68 |
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 17.49%. 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 2.87%.
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 3.33%.
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 3.68%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Downtrend
LIQUIDITY
: SATISFACTORY
LIQUIDITY
RATIO
|
Current Ratio |
6.19 |
Impressive |
Industrial Average |
1.72 |
|
Quick Ratio |
4.15 |
|
|
|
|
Cash Conversion Cycle |
98.66 |
|
|
|
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 6.19 times in 2012, increased from 5.56 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 4.15 times in 2012,
decreased from 4.85 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 99 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE
: EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.10 |
Impressive |
Industrial Average |
0.39 |
|
Debt to Equity Ratio |
0.11 |
Impressive |
Industrial Average |
0.65 |
|
Times Interest Earned |
239.59 |
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 239.6 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 0.1 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 |
2.86 |
Impressive |
Industrial Average |
0.38 |
|
Total Assets Turnover |
1.16 |
Impressive |
Industrial Average |
0.82 |
|
Inventory Conversion Period |
73.44 |
|
|
|
|
Inventory Turnover |
4.97 |
Satisfactory |
Industrial Average |
5.15 |
|
Receivables Conversion Period |
61.20 |
|
|
|
|
Receivables Turnover |
5.96 |
Impressive |
Industrial Average |
2.38 |
|
Payables Conversion Period |
35.99 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.96 and 6.73 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 increased from 29 days at the
end of 2011 to 73 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 12.53 times in year 2011 to 4.97
times in year 2012.
The company's Total Asset Turnover is calculated as 1.16 times and 1.15
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
|
Key Areas |
Score |
Weight |
Weighted
Score |
|
LIQUIDITY RATIO |
2.67 |
25.00 |
66.75 |
|
ACTIVITY RATIO |
3.67 |
20.00 |
73.40 |
|
PROFITABILITY
RATIO |
1.33 |
25.00 |
33.25 |
|
LEVERAGE RATIO |
4.00 |
10.00 |
40.00 |
|
ANNUAL GROWTH |
- |
20.00 |
- |
|
Total Weight
(excluding - - Score) |
|
100.00 |
|
|
|
|
|
213.40 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 60.27 |
|
|
1 |
Rs. 102.76 |
|
Euro |
1 |
Rs. 82.12 |
INFORMATION DETAILS
|
Analysis Done by
: |
SMT |
|
|
|
|
Report Prepared
by : |
DPT |
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.