MIRA INFORM REPORT
|
Report Date : |
20.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
INDORAMA PETROCHEM LTD. |
|
|
|
|
Registered Office : |
35th Floor, Ocean Tower, 75/93 Soi Sukhumvit 19, Sukhumvit Road, Klongtoeynua, Wattana, Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
19.05.2003 |
|
|
|
|
Com. Reg. No.: |
0105546057211 [Former : 10654600697] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor and Exporter of Purified Terephthalic Acid |
|
|
|
|
No of Employees : |
250 |
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 |
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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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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. 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 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.
|
Source
: CIA |
COMPANY
NAME
INDORAMA
PETROCHEM LTD.
SUMMARY
BUSINESS
ADDRESS : 35th FLOOR,
OCEAN TOWER,
75/93 SOI
SUKHUMVIT 19, SUKHUMVIT
ROAD,
KLONGTOEYNUA, WATTANA,
BANGKOK 10110,
THAILAND
TELEPHONE : [66] 2661-6658
FAX :
[66] 2661-6664,
2661-7524
E-MAIL
ADDRESS : irpl@indorama.net
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2003
REGISTRATION
NO. : 0105546057211 [Former : 10654600697]
TAX
ID NO. : 3030915931
CAPITAL REGISTERED : BHT. 4,727,820,420
CAPITAL PAID-UP : BHT.
4,727,820,420
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. DILIP KUMAR
AGARWAL, INDIAN
CHIEF EXECUTIVE
OFFICER
NO.
OF STAFF : 250
LINES
OF BUSINESS : PURIFIED TEREPHTHALIC
ACID
MANUFACTURER, DISTRIBUTOR
AND 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 May 19,
2003 as a
private limited company
under the name
style INDORAMA PETROCHEM
LTD., by Thai-Foreign
groups, with the business
objective to manufacture
Purified Terephthalic Acid
for domestic and
export markets. It
currently employs 250
staff.
Presently,
subject is a
wholly owned subsidiary
of Indorama Ventures
Public Company Limited,
Thailand, which is
a member of
Canopus International Limited
in Mauritius.
The
subject is also
a member of
Indorama Group, which
is the world-class
enterprise competing on
an international playing
field, has strong
presence in polyesters
and textiles for
last more than
three decades, which
use petrochemicals as raw
materials. Since 2002, the group
has started backward
integration by entering
into petrochemicals: successfully
started one of largest
PTA plant at
Thailand in March
2006.
On
May 4, 2007,
subject achieved the
ISO 9001:2000 certificate.
The
subject’s registered address
was initially at
36/81 Sukhumvit 21 Rd., Klongtoeynua,
Wattana, Bangkok 10110.
In
October 2008, subject’s
registered address was
relocated to 35th Flr.,
Ocean Tower, 75/93
Soi Sukhumvit 19,
Sukhumvit Rd., Klongtoeynua, Wattana, Bangkok 10110, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sanjeev Sharma |
[x] |
Indian |
47 |
|
Mr. Dilip Kumar
Agarwal |
[x] |
Indian |
58 |
|
Mr. Sandeep Pandurang Kamat |
|
Indian |
47 |
|
Mr. Prem Chandra Gupta |
[x] |
Indian |
62 |
|
Mr. Aloke Lohia |
[x] |
Indian |
56 |
|
Mrs. Suchitra Lohia |
[x] |
Indian |
50 |
AUTHORIZED PERSON
Any of the
mentioned directors [x] can sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Prem Chandra Gupta
is the President.
He is Indian
nationality with the
age of 62
years old.
Mr. Dilip Kumar Agarwal
is the Chief
Executive Officer.
He is Indian
nationality with the
age of 58
years old.
Mr. Nop Siwasitchai is
the VP [Human
Resources & Administration].
He is Thai
nationality.
Mr. Sanjeev Sharma is
the VP [Marketing].
He is Indian
nationality with the
age of 47
years old.
Mr. Bala Subramanian is
the Production Manager.
He is Indian
nationality.
Mr. Satyanarayan Mohta is
the Operation Manager.
He is Indian
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
and marketing of
Purified Terephthalic Acid, which
is a major
raw material in
the manufacture of
Polyester Polymer.
PRODUCTION CAPACITY
Approximately 771,000 metric
tons per annum.
PURCHASE
Most of raw
materials are purchased
from local suppliers,
and the remaining
as well as
machinery are imported
from Indonesia, Italy,
India, Republic of
China, Netherlands and
Germany.
MAJOR SUPPLIER
PTT Global Chemical
Public Company Limited : Thailand
SALES
70% of the
products is sold
locally by wholesale
to dealers and
manufacturers, and the
remaining 30% is
exported to Indonesia,
Vietnam, United Kingdom,
Germany, Japan, Taiwan, Republic
of China, Malaysia,
Australia and United
States of America.
MAJOR CUSTOMER
Indorama Polyester Industries
Public Company Limited
: Thailand
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is not
found to have
any subsidiary or
affiliated company here
in Thailand.
LITIGATION
Bankruptcy and
Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the
subject found at
Legal Execution Department
for the past
five years.
Others
There are no
legal suits filed
against the subject
according 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 at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BANKING
Krung Thai Bank Public Co.,
Ltd.
Bangkok Bank Public
Co., Ltd.
Bank of Ayudhya
Public Co., Ltd.
EMPLOYMENT
The
subject employs approximately
250 staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial
area.
Factory
and warehouse are
located at 4
Moo 2, Asia
Industrial Estate, T. Banchang,
A. Banchang, Rayong 21130.
Tel : [66]
38 689-081-5 Fax
: [66] 38
689-090
COMMENT
The subject
was set-up as
one of the
world largest plants
of Purified Terephthalic
Acid in Asia Industrial Estate,
petrochemical hub of Rayong province in Thailand.
The commercial production
started in March
2006. The plant
has operational capacity of
771,000 MT per annum,
subscribes Dupont (formerly Invista)
technology in the
manufacturing process. The
plant is one
of the single
largest train plants
for the production
of PTA until
today.
PTA
(Purified Terephthalic Acid) is a major
raw material in the
manufacture of polyester polymer. There
has been a
growth in demand
for PTA, particularly
in Asia, driven by
increasing end usages of polyesters in apparel, packaging and
industrial applications. Subject’s
outstanding performance is
assured its
sustainable growth in the
region.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 100,000 divided
into 10,000 shares
of Bht. 10
each.
The
capital was increased
later as following:
Bht. 600,000,000 on
January 22, 2004
Bht. 4,712,000,000
on April 12,
2004
Bht. 4,727,820,420
on November 4,
2005
The
latest registered capital
was increased to
Bht. 4,727,820,420 divided into 472,782,042
shares of Bht.
10 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at
April 22, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Indorama Ventures Public
Company Limited Nationality: Thai Address : 75/102
Sukhumvit 19 Rd.,
Klongtoetnua,
Wattana, Bangkok |
472,782,036 |
100.00 |
|
Mr. Amit Lohia Nationality: Indian Address : Jakarta,
Indonesia |
2 |
|
|
Mr. Sriprakash Lohia Nationality: Indonesian Address : Jakarta,
Indonesia |
1 |
- |
|
Mrs. Zema Lohia Nationality: Indian Address : Jakarta,
Indonesia |
1 |
- |
|
Mrs. Adi Lohia Nationality: Indian Address : Jakarta,
Indonesia |
1 |
- |
|
Mrs. Shruti Lohia Nationality: Indian Address : Jakarta,
Indonesia |
1 |
- |
Total Shareholders : 6
Share Structure [as
at April 22
2013]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
472,782,036 |
100.00 |
|
Foreign - Indian |
5 |
6 |
- |
|
Total |
6 |
472,782,042 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Orawan Vhoonhakijpaisal No.
6105
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 |
176,824,585 |
197,381,980 |
362,611,472 |
|
Trade Accounts Receivable |
2,100,207,217 |
2,155,507,033 |
2,030,878,097 |
|
Inventories |
1,547,791,542 |
1,191,314,580 |
1,310,157,738 |
|
Lending to Parent Company |
164,300,000 |
164,300,000 |
- |
|
Other Current Assets
|
225,656,014 |
214,778,257 |
152,986,858 |
|
|
|
||
|
Total Current Assets
|
4,214,779,358 |
3,923,281,850 |
3,856,634,165 |
|
Fixed Assets |
11,668,004,019 |
12,109,111,260 |
12,309,716,860 |
|
Intangible Assets |
346,042,642 |
361,112,697 |
379,494,882 |
|
Other Non-current Assets |
15,999,525 |
16,025,833 |
14,719,759 |
|
Total Assets |
16,244,825,544 |
16,409,531,640 |
16,560,565,666 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Short-term Loan from Bank |
2,550,007,742 |
2,780,937,876 |
241,651,244 |
|
Trade Accounts Payable |
2,429,474,391 |
1,374,159,772 |
2,128,075,031 |
|
Current Portion of
Long-term Loan from Financial Institutions |
- |
818,207,158 |
1,038,314,793 |
|
Current Portion of Finance
Lease Contract Liabilities |
1,219,178 |
1,568,873 |
2,122,796 |
|
Other Current Liabilities |
262,040,913 |
240,725,807 |
253,498,460 |
|
|
|
|
|
|
Total Current Liabilities |
5,242,742,224 |
5,215,599,486 |
3,663,662,324 |
|
Long-term Loan from
Financial Institution
|
2,601,829,014 |
3,753,527,028 |
4,610,768,241 |
|
Long-term Loan from
Parent Company |
2,432,956,949 |
1,181,200,722 |
1,141,324,096 |
|
Finance Lease Contract
Liabilities Net of
Current Portion |
- |
1,208,288 |
2,780,590 |
|
Employee Benefits Obligation |
24,689,669 |
20,348,439 |
- |
|
Other Non-current Liabilities |
- |
- |
29,548,542 |
|
Total Liabilities |
10,302,217,856 |
10,171,883,963 |
9,448,083,793 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 472,782,042 shares |
4,727,820,420 |
4,727,820,420 |
4,727,820,420 |
|
|
|
|
|
|
Capital Paid |
4,727,820,420 |
4,727,820,420 |
4,727,820,420 |
|
Loss on Estimated
Insurance |
[4,674,819] |
[3,867,932] |
- |
|
Statutory Reserve |
472,782,042 |
472,782,042 |
246,627,574 |
|
Retained Earning -
Unappropriated |
746,680,045 |
1,040,913,147 |
2,138,033,879 |
|
Total Shareholders' Equity |
5,942,607,688 |
6,237,647,677 |
7,112,481,873 |
|
Total Liabilities &
Shareholders' Equity |
16,244,825,544 |
16,409,531,640 |
16,560,565,666 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
24,951,506,330 |
27,441,302,697 |
21,801,960,282 |
|
Gain on Exchange
Rate |
277,272,008 |
- |
798,102,656 |
|
Other Income |
8,077,390 |
30,455,151 |
5,844,101 |
|
Total Revenues |
25,236,855,728 |
27,471,757,848 |
22,605,907,039 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
24,659,425,423 |
24,452,276,123 |
18,130,229,117 |
|
Selling Expenses |
499,533,317 |
564,917,937 |
720,641,391 |
|
Administrative Expenses |
73,860,449 |
69,840,794 |
72,745,187 |
|
Remuneration Management |
10,784,933 |
10,864,925 |
8,334,409 |
|
Loss on Exchange
Rate |
- |
180,373,625 |
- |
|
Financial Cost |
287,484,708 |
214,104,949 |
265,055,221 |
|
Total Expenses |
25,531,088,830 |
25,492,378,353 |
19,197,005,325 |
|
|
|
|
|
|
Net Profit / [Loss] |
[294,233,102] |
1,979,379,495 |
3,408,901,714 |
|
Loss from Estimated
Insurance |
[806,887] |
[3,867,932] |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
[295,039,989] |
1,975,511,563 |
3,408,901,714 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.80 |
0.75 |
1.05 |
|
QUICK RATIO |
TIMES |
0.43 |
0.45 |
0.65 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.14 |
2.27 |
1.77 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.54 |
1.67 |
1.32 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
22.91 |
17.78 |
26.38 |
|
INVENTORY TURNOVER |
TIMES |
15.93 |
20.53 |
13.84 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
30.72 |
28.67 |
34.00 |
|
RECEIVABLES TURNOVER |
TIMES |
11.88 |
12.73 |
10.74 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
35.96 |
20.51 |
42.84 |
|
CASH CONVERSION CYCLE |
DAYS |
17.67 |
25.94 |
17.53 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
98.83 |
89.11 |
83.16 |
|
SELLING & ADMINISTRATION |
% |
2.30 |
2.31 |
3.64 |
|
INTEREST |
% |
1.15 |
0.78 |
1.22 |
|
GROSS PROFIT MARGIN |
% |
2.31 |
11.00 |
20.53 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(1.18) |
7.21 |
15.64 |
|
NET PROFIT MARGIN |
% |
(1.18) |
7.21 |
15.64 |
|
RETURN ON EQUITY |
% |
(4.95) |
31.73 |
47.93 |
|
RETURN ON ASSET |
% |
(1.81) |
12.06 |
20.58 |
|
EARNING PER SHARE |
BAHT |
(0.62) |
4.19 |
7.21 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.63 |
0.62 |
0.57 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.73 |
1.63 |
1.33 |
|
TIME INTEREST EARNED |
TIMES |
(1.02) |
9.24 |
12.86 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(9.07) |
25.87 |
|
|
OPERATING PROFIT |
% |
(114.86) |
(41.93) |
|
|
NET PROFIT |
% |
(114.86) |
(41.93) |
|
|
FIXED ASSETS |
% |
(3.64) |
(1.63) |
|
|
TOTAL ASSETS |
% |
(1.00) |
(0.91) |
|
ANNUAL
GROWTH : RISKY
An annual sales growth is -9.07%. Turnover has decreased from THB
27,441,302,697.00 in 2011 to THB 24,951,506,330.00 in 2012. While net profit has
decreased from THB 1,979,379,495.00 in 2011 to THB -294,233,102.00 in 2012. And
total assets has decreased from THB 16,409,531,640.00 in 2011 to THB
16,244,825,544.00 in 2012.
PROFITABILITY
: ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
2.31 |
Impressive |
Industrial Average |
(9.78) |
|
Net Profit Margin |
(1.18) |
Deteriorated |
Industrial Average |
2.21 |
|
Return on Assets |
(1.81) |
Deteriorated |
Industrial Average |
6.82 |
|
Return on Equity |
(4.95) |
Deteriorated |
Industrial Average |
13.25 |
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 2.31%. When
compared with the industry average, the ratio of the company was higher,
indicated that company was more profitable than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company's figure is -1.18%.
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 -1.81%.
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 -4.95%.
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 |
0.80 |
Risky |
Industrial Average |
1.68 |
|
Quick Ratio |
0.43 |
|
|
|
|
Cash Conversion Cycle |
17.67 |
|
|
|
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 0.8 times in 2012, increased from 0.75 times, then the company may
have problems meeting its short-term obligations. When compared with the
industry average, the ratio of the company was lower.
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 0.43 times in 2012,
decreased from 0.45 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 18 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE
: RISKY
LEVERAGE
RATIO
|
Debt Ratio |
0.63 |
Acceptable |
Industrial Average |
0.47 |
|
Debt to Equity Ratio |
1.73 |
Risky |
Industrial Average |
0.88 |
|
Times Interest Earned |
(1.02) |
Risky |
Industrial Average |
- |
Debt to Equity Ratio a measurement of how much suppliers, lenders,
creditors and obligors have committed to the company versus what the shareholders
have committed. A higher the percentage means that the company is using less
equity and has stronger leverage position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is -1.03 lower than 1, so the company is not generating
enough cash from EBIT to meet its
interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.63 greater than 0.5, most of the
company's assets are financed through debt.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Uptrend
Times Interest Earned Stable
ACTIVITY
: SATISFACTORY
ACTIVITY
RATIO
|
Fixed Assets Turnover |
2.14 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.54 |
Deteriorated |
Industrial Average |
3.08 |
|
Inventory Conversion Period |
22.91 |
|
|
|
|
Inventory Turnover |
15.93 |
Satisfactory |
Industrial Average |
19.80 |
|
Receivables Conversion Period |
30.72 |
|
|
|
|
Receivables Turnover |
11.88 |
Satisfactory |
Industrial Average |
13.81 |
|
Payables Conversion Period |
35.96 |
|
|
|
The company's Account Receivable Ratio is calculated as 11.88 and 12.73
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 18 days at the
end of 2011 to 23 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 20.53 times in year 2011 to 15.93
times in year 2012.
The company's Total Asset Turnover is calculated as 1.54 times and 1.67
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
|
Key Areas |
Score |
Weight |
Weighted
Score |
|
LIQUIDITY RATIO |
1.33 |
25.00 |
33.25 |
|
ACTIVITY RATIO |
2.33 |
20.00 |
46.60 |
|
PROFITABILITY
RATIO |
1.00 |
25.00 |
25.00 |
|
LEVERAGE RATIO |
0.44 |
10.00 |
4.40 |
|
ANNUAL GROWTH |
- |
20.00 |
- |
|
Total Weight (excluding
- - Score) |
|
100.00 |
|
|
|
|
|
109.25 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 61.09 |
|
|
1 |
Rs. 101.41 |
|
Euro |
1 |
Rs. 85.07 |
INFORMATION DETAILS
|
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.