MIRA
INFORM REPORT
|
Report Date : |
20.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
BST ELASTOMERS
CO., LTD. |
|
|
|
|
Registered Office : |
22nd Floor, Sathorn City Tower, 175 South
Sathorn Rd., Thungmahamek, Sathorn,
Bangkok 10120 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
16.01.1991 |
|
|
|
|
Com. Reg. No.: |
0105534004401 [Former: 440/2534] |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
engaged
in manufacturing synthetic
rubber products, specialized
in Butadiene Rubber [BR] and Styrene
Butadiene Rubber [SBR] used
in many secondary manufacturing industries,
including vehicle tires,
shoes soles, impact
modified plastic, rubber automotive
component, plastic packaging,
conveyor belts, sports
equipment such as
football, basketballs, golf
balls & rubber toys
|
|
|
|
|
No of Employees : |
approximately 270
(office staff and
factory workers) |
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 : |
Slow But Correct |
|
|
|
|
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 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
BST ELASTOMERS CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 22nd FLOOR,
SATHORN CITY TOWER,
175
SOUTH
SATHORN ROAD, THUNGMAHAMEK,
SATHORN,
BANGKOK 10120, THAILAND
TELEPHONE : [66] 2679-5120
FAX :
[66] 2679-5122
E-MAIL
ADDRESS : marketing_bste@bst.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1991
REGISTRATION
NO. : 0105534004401 [Former: 440/2534]
TAX
ID NO. : 3101957761
CAPITAL REGISTERED : BHT. 525,000,000
CAPITAL PAID-UP : BHT.
525,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : DR. PICHIT NITHIVASIN,
THAI
PRESIDENT
NO.
OF STAFF : 270
LINES
OF BUSINESS : SYNTHETIC RUBBER
PRODUCTS
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 16,
1991 as a
private limited company
under the registered
name BANGKOK ELASTOMERS
CO., LTD., by Thai groups,
with the business
objective to manufacture
and supply synthetic
rubber products to
both local and
overseas markets.
On January 11,
1996, the subject’s
name was changed
to BST ELASTOMERS
CO., LTD.
At present, the
subject is a
wholly owned subsidiary
of Bangkok Synthetics
Co., Ltd., with
holding around 100%
of the subject’s
shares. It currently
employs approximate 270
staff.
Subject achieved
awards and certificates
as follows:
-
September
2000 : ISO
9002 Certification
-
August
2001 : ISO 14001
Certification
-
October
2002 : ISO 9001
Certification
-
November
2003 : TIS
18001 Certification
-
May 2004 : Outstanding
Company for Safety,
Occupational Health and
Workplace
Environment (National Level) Award
-
July
2004 :
Outstanding Company for
Labor Welfare Provision
Award
2004
-
December 2004
: TIS 17025
Certification.
The subject’s registered address is 22nd Floor,
Sathorn City Tower, 175
South Sathorn Rd., Thungmahamek,
Sathorn, Bangkok 10120, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Dr. Pichit Nithivasin |
|
Thai |
68 |
|
Mr. Pichai Nithivasin |
|
Thai |
71 |
|
Mr. Pichet Nithivasin |
|
Thai |
63 |
|
Mr. Supachol Nithivasin |
[x] |
Thai |
38 |
|
Mr. Apiporn Pasawat |
[x] |
Thai |
66 |
|
Mr. Rungroj Rangsiyopas |
[x] |
Thai |
- |
|
Mr. Chaiyot Wongphyat |
[x] |
Thai |
64 |
|
Mrs. Suchada Sukapatthavorn |
|
Thai |
53 |
|
Mr. Cholanat Yarnaranop |
[x] |
Thai |
59 |
|
Mr. Somchai Wangwattanapanich |
[x] |
Thai |
57 |
|
Mrs. Phanchompoo
Vipatpumiprathes |
[x] |
Thai |
- |
|
Mr. Chavalit Ekabut |
[x] |
Thai |
- |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can jointly sign
with one of the
rest directors on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Dr. Pichit Nithivasin is
the President.
He is Thai
nationality with the
age of 68
years old.
Mr. Chaiyot Wongphyat
is the Managing
Director.
He is Thai
nationality with the
age of 64
years old.
Mr. Supachol Nithivasin
is the Deputy
Managing Director.
He is Thai
nationality with the
age of 38
years old.
Mr. Chaiyapong Phasiphol is
the Marketing &
Sales Manager and
Purchasing Manager.
He is Thai
nationality.
Mr. Viroj Lertsalak
is the Factory
Manager.
He is Thai
nationality.
Mr. Veerachai Sripetchasakul is
the Human Resource
Manager.
He is Thai
nationality.
Mrs. Nisa Sirimongkolkasem is
the Account &
Finance Manager.
She is Thai
nationality.
Mr. Vichit Thitiratsakul is
the Supply Chain
Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
synthetic rubber products,
specialized in Butadiene
Rubber [BR] and Styrene Butadiene
Rubber [SBR] used in
many secondary manufacturing industries,
including vehicle tires,
shoes soles, impact
modified plastic, rubber automotive
component, plastic packaging,
conveyor belts, sports
equipment such as
football, basketballs, golf
balls & rubber toys
The productions
are as follows:
- Butadiene Rubber [BR];
BSTE BR 01,
BSTE BR 1220 and
BSTE BR 1220 S.
Production Capacity :
50,000 tonnes/year
- Styrene Butadiene Rubber
[SBR]; BSTE SBR 1500,
BSTE SBR 1502,
BSTE SBR 1712, and
BSTE SBR 1778
Production Capacity :
70,000 tonnes/year
The production technology
has been provided
by JSR Corporation
and Zeon Corporation
in Japan.
PURCHASE
Raw materials are
purchased from both
local and overseas
suppliers in Japan,
Germany, Malaysia, Republic
of China, Taiwan,
Italy and Singapore.
MAJOR SUPPLIERS
Zeon Corporation : Japan
J S R Corporation : Japan
Bangkok Synthetics Co., Ltd. : Thailand
Mitsui & Co.
Ltd. : Thailand
Natsteel Chemical Co., Ltd. : Singapore
DISTRIBUTION
80% of its
products is sold
locally by wholesale
to manufacturers, and
the remaining 20%
is exported to
Japan, Singapore, Taiwan,
Republic of China, Malaysia, South Korea,
Indonesia, Vietnam, Philippines,
Australia, India, Hong
Kong, Europe and
United States of
America.
MAJOR CUSTOMERS
J S R Corporation
Zeon Corporation
Bridgestone Group
Michelin Siam Co.,
Ltd.
S.R. Tyres Co., Ltd.
K.C. Sport and
Rubber Co., Ltd.
Siam Fugoku Co.,
Ltd.
Vee Rubber International
Co., Ltd.
PARENT COMPANY
Bangkok Synthetics Co., Ltd.
Business Type : Manufacturer of
petrochemical products
Address : 175
South Sathorn Rd.,
Thungmahamek, Sathorn, Bangkok
10120
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
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
& T/T.
Exports are against
L/C at sight
& T/T.
BUSINESS TRANSACTION
The products are
sold to customers
by cash and
credit, with the maximum credit given at
30-60 days. The
subject is found
to have some delay
payment by customers,
but they can negotiate.
BANKING
Krung Thai Bank
Public Co., Ltd.
[Head Office : 35 Sukhumvit Rd.,
Klongtoeynua, Wattana, Bangkok 10110]
The Siam Commercial
Bank Public Co.,
Ltd.
[Chidlom Office : 1060
New Petchburi Rd.,
Makkasan, Rajthevee, Bangkok 10400]
Bangkok Bank Public
Co., Ltd.
[Maptaphut Branch : 636/1 Moo 1,
T. Maptaphut, A. Muang, Rayong
Province]
EMPLOYMENT
The subject employs
approximately 270 office
staff and factory
workers.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is located
in a prime
commercial area.
Factory and warehouse
are located at
5/1 Maptaphut Industrial Estate,
I-7 Rd.,
T. Maptaphut, A. Muang, Rayong
21150. Tel: [66] 38
698-698, Fax: [66] 38 698-699.
Note:
On May 5,
2012, the blast occurred
at 3.20 p.m. at
a production unit
of BST. The
accident took place
while workers were
cleaning up the
production line with
toluene, and had
resulted about 1.5-1.7
billion baht in
damage. 12 people
were killed and 129
wounded in this
accident which nine were killed
in the explosion
at the factory,
the other three
died at hospital.
In July 2012,
the subject started
to renovate its
machinery and related
equipment, and its
production was re-started
in 2013.
COMMENT
The Company is
the largest producer of
mixedC4 products in the
Southeast Asian Region. BST debuted commercial operations
in 1995 and expanded its
production capacity in 1998 to
correspond to the increasing demand in petrochemical industry.
The Company’s products include Butadiene, Butene-1, MTBE and C4
Raffinates. These products
are major raw
materials of such
downstream petrochemical industry
as the manufacturing of
synthetic rubbers and
plastic resins, which
are essential parts of our
daily life in
the form of
medical devices, food containers,
tires, shoes, auto parts, electric appliances,
sports equipment and
etc.
Due to the
incident in July
2012, the subject
had been forced
to stop its production
temporarily, therefore the
subject ended the
year with negative
outcome.
However, the subject
anticipated to continue
a strong and
stable business.
FINANCIAL INFORMATION
The
capital was initially registered at Bht. 1,000,000 divided
into 10,000 shares of
Bht. 100 each.
The capital was
increased later as
follows:
Bht. 250,000,000 on
November 1, 1996
Bht. 1,500,000,000 on
July 16, 1998
Bht. 1,800,000,000 on
December 11, 1998
Bht. 2,100,000,000 on
November 22, 1999
On September 27,
2004, the capital
was decreased to Bht.
525,000,000 divided into
21,000,000 shares of
Bht. 25 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
: [as at
March 11, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Bangkok Synthetics Co., Ltd. Nationality: Thai Address : 175 South
Sathorn Rd., Thungmahamek,
Sathorn, Bangkok 10120 |
20,999,982 |
100.00 |
|
Dr. Pichit Nithivasin Nationality: Thai Address : 95/55 Moo
7, Suanyai, Muang,
Nonthaburi |
5 |
- |
|
Mr. Pichai Nithivasin Nationality: Thai Address : 109 Suapa
Rd., Pomprab, Bangkok |
5 |
- |
|
Mr. Pichet Nithivasin Nationality: Thai Address : 89/20-21 Wireless
Rd., Lumpinee,
Pathumwan, Bangkok |
5 |
- |
|
Mr. Chaiyot Wongphyat Nationality: Thai Address : 1213/316 Soi
Ladprao 94,
Wangthonglang, Bangkok |
1 |
- |
|
Mr. Jenchai Limwatanakoon Nationality: Thai Address : 273/28 Sathupradit
Rd., Chongnonsee,
Yannawa, Bangkok |
1 |
- |
|
Mr. Pranot Charoenlarp Nationality: Thai Address : 54 Moo 8,
Bangkaen, Bangplee, Samutprakarn |
1 |
- |
Total Shareholders : 7
Share Structure [as
at March 11,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
21,000,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
21,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Sureerat Thongaroonsaeng No.
4409
BALANCE SHEET [BAHT]
The latest financial figures published as at December 31, 2012, 2011 & 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
4,500,568,781 |
6,295,882,006 |
2,286,021,875 |
|
Short-term Investment in Promissory Notes |
5,004,816,283 |
647,718,432 |
2,671,824,997 |
|
Trade Accounts Receivable - Related
Companies |
1,661,374 |
6,050,004 |
4,325,729 |
|
- Other
Companies |
279,256,560 |
1,414,117,043 |
854,651,579 |
|
Related Companies Receivable |
11,319,821 |
7,869,647 |
6,594,757 |
|
Inventories |
409,488,973 |
1,881,929,717 |
1,294,226,899 |
|
Refundable Value Added
Tax |
96,775,489 |
81,526,371 |
85,419,015 |
|
Other Current Assets
|
61,716,890 |
44,117,161 |
26,986,071 |
|
|
|
|
|
|
Total Current Assets
|
10,365,604,171 |
10,379,210,381 |
7,230,050,922 |
|
Fixed Deposit |
- |
300,000,000 |
- |
|
Fixed Assets |
872,529,196 |
1,040,439,028 |
1,460,907,202 |
|
Intangible Assets |
70,831,670 |
100,703,951 |
130,557,824 |
|
Other Non-current Assets |
9,943,414 |
12,937,462 |
18,909,212 |
|
Total Assets |
11,318,908,451 |
11,833,290,822 |
8,840,425,160 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable - Related
Companies |
- |
691,556,702 |
596,794,746 |
|
- Other
Companies |
64,015,596 |
474,509,086 |
255,870,532 |
|
Related Companies Payable |
13,716,469 |
11,947,178 |
12,172,128 |
|
Accrued Bonus |
40,126,244 |
61,050,567 |
34,630,335 |
|
Accrued Income Tax |
- |
268,790,365 |
65,922,654 |
|
Other Current Liabilities |
1,020,901,502 |
71,794,449 |
94,773,759 |
|
|
|
|
|
|
Total Current Liabilities |
1,138,759,811 |
1,579,648,347 |
1,060,164,154 |
|
Reserve for Employee Benefits |
64,661,215 |
36,717,177 |
- |
|
Deferred Acknowledge Income |
5,970,477 |
10,448,335 |
14,926,193 |
|
Total Liabilities |
1,209,391,503 |
1,626,813,859 |
1,075,090,347 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 25
par value authorized, issued
and fully paid share
capital 21,000,000 shares |
525,000,000 |
525,000,000 |
525,000,000 |
|
|
|
|
|
|
Capital Paid |
525,000,000 |
525,000,000 |
525,000,000 |
|
Retained Earning - Unappropriated |
9,584,516,948 |
9,681,476,963 |
7,240,334,813 |
|
Total Shareholders' Equity |
10,109,516,948 |
10,206,476,963 |
7,765,334,813 |
|
Total Liabilities & Shareholders' Equity |
11,318,908,451 |
11,833,290,822 |
8,840,425,160 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
5,879,751,489 |
16,060,892,733 |
10,418,693,149 |
|
Interest Income |
212,987,717 |
144,394,548 |
51,137,319 |
|
Gain on Exchange Rate |
18,709,691 |
39,992,527 |
- |
|
Other Income |
20,106,634 |
47,118,821 |
70,755,795 |
|
Fire Income |
371,788,002 |
- |
- |
|
Total Revenues |
6,503,343,533 |
16,292,398,629 |
10,540,586,263 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
5,934,193,005 |
12,848,621,910 |
9,337,687,327 |
|
Selling Expenses |
193,232,868 |
321,733,504 |
308,206,515 |
|
Administrative Expenses |
471,021,763 |
174,529,003 |
152,025,609 |
|
Estimated Loss from
Diminution of Inventories |
- |
- |
377,612 |
|
Loss on Exchange Rate |
- |
- |
21,103,705 |
|
Total Expenses |
6,598,447,636 |
13,344,884,417 |
9,819,400,768 |
|
Profit before Income Tax |
[95,104,103] |
2,947,514,212 |
721,185,495 |
|
Income Tax |
[1,855,912] |
[480,913,331] |
[98,122,948] |
|
|
|
|
|
|
Net Profit / [Loss] |
[96,960,015] |
2,466,600,881 |
623,062,547 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
9.10 |
6.57 |
6.82 |
|
QUICK RATIO |
TIMES |
8.60 |
5.30 |
5.49 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
6.74 |
15.44 |
7.13 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.52 |
1.36 |
1.18 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
25.19 |
53.46 |
50.59 |
|
INVENTORY TURNOVER |
TIMES |
14.49 |
6.83 |
7.21 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
17.34 |
32.14 |
29.94 |
|
RECEIVABLES TURNOVER |
TIMES |
21.06 |
11.36 |
12.19 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
3.94 |
13.48 |
10.00 |
|
CASH CONVERSION CYCLE |
DAYS |
38.58 |
72.12 |
70.53 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
100.93 |
80.00 |
89.62 |
|
SELLING & ADMINISTRATION |
% |
11.30 |
3.09 |
4.42 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
9.68 |
21.44 |
11.55 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(1.62) |
18.35 |
6.92 |
|
NET PROFIT MARGIN |
% |
(1.65) |
15.36 |
5.98 |
|
RETURN ON EQUITY |
% |
(0.96) |
24.17 |
8.02 |
|
RETURN ON ASSET |
% |
(0.86) |
20.84 |
7.05 |
|
EARNING PER SHARE |
BAHT |
(4.62) |
117.46 |
29.67 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.11 |
0.14 |
0.12 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.12 |
0.16 |
0.14 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(63.39) |
54.15 |
|
|
OPERATING PROFIT |
% |
(103.23) |
308.70 |
|
|
NET PROFIT |
% |
(103.93) |
295.88 |
|
|
FIXED ASSETS |
% |
(16.14) |
(28.78) |
|
|
TOTAL ASSETS |
% |
(4.35) |
33.85 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -63.39%. Turnover has decreased from THB
16,060,892,733.00 in 2011 to THB 5,879,751,489.00 in 2012. While net profit has
decreased from THB 2,466,600,881.00 in 2011 to THB -96,960,015.00 in 2012. And
total assets has decreased from THB 11,833,290,822.00 in 2011 to THB
11,318,908,451.00 in 2012.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
9.68 |
Impressive |
Industrial Average |
5.90 |
|
Net Profit Margin |
(1.65) |
Deteriorated |
Industrial Average |
14.85 |
|
Return on Assets |
(0.86) |
Deteriorated |
Industrial Average |
18.75 |
|
Return on Equity |
(0.96) |
Deteriorated |
Industrial Average |
29.38 |
Gross Profit Margin used to assess a firm's financial health by revealing
the proportion of money left over from revenues after accounting for the cost
of goods sold. Gross profit margin serves as the source for paying additional
expenses and future savings. The company’s figure is 9.68%. 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 -1.65%.
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 -0.86%.
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 -0.96%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
9.10 |
Impressive |
Industrial Average |
2.41 |
|
Quick Ratio |
8.60 |
|
|
|
|
Cash Conversion Cycle |
38.58 |
|
|
|
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 9.1 times in 2012, increased from 6.57 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 8.6 times in 2012,
increased from 5.3 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 39 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.11 |
Impressive |
Industrial Average |
0.40 |
|
Debt to Equity Ratio |
0.12 |
Impressive |
Industrial Average |
0.58 |
|
Times Interest Earned |
- |
|
Industrial Average |
21.95 |
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.11 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 Uptrend
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
6.74 |
Impressive |
Industrial Average |
(0.26) |
|
Total Assets Turnover |
0.52 |
Deteriorated |
Industrial Average |
1.14 |
|
Inventory Conversion Period |
25.19 |
|
|
|
|
Inventory Turnover |
14.49 |
Impressive |
Industrial Average |
9.30 |
|
Receivables Conversion Period |
17.34 |
|
|
|
|
Receivables Turnover |
21.06 |
Impressive |
Industrial Average |
6.04 |
|
Payables Conversion Period |
3.94 |
|
|
|
The company's Account Receivable Ratio is calculated as 21.06 and 11.36
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 increased from 2011. This would suggest the company had good performance
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 53 days at the
end of 2011 to 25 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 6.83 times in year 2011 to 14.49
times in year 2012.
The company's Total Asset Turnover is calculated as 0.52 times and 1.36
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 Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.43 |
|
UK Pound |
1 |
Rs.98.28 |
|
Euro |
1 |
Rs.80.12 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.