MIRA
INFORM REPORT
|
Report Date : |
30.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
UBE FINE
CHEMICALS [ASIA] CO.,
LTD. |
|
|
|
|
Registered Office : |
18th Floor, Sathorn
Square Office Tower,
98 North Sathorn
Road, Silom, Bangrak,
Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
04.10.2007 |
|
|
|
|
Com. Reg. No.: |
0105550104805 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
· engaged in manufacturing, distributing and exporting of petrochemicals mainly 1,6-Hexanediol (HDL) and 1,5-Pentanediol (PDL) Subject products
are derived from
the by-products of
Caprolactam production and
used as a
raw material for
Polyurethane and Polycarbonatedio production
industry |
|
|
|
|
No of Employees : |
90 (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 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
UBE FINE
CHEMICALS [ASIA] CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 18th FLOOR,
SATHORN SQUARE OFFICE
TOWER,
98
NORTH
SATHORN ROAD, SILOM,
BANGRAK,
BANGKOK 10500, THAILAND
TELEPHONE : [66] 2206-9300
FAX :
[66] 2206-9313
E-MAIL
ADDRESS : pongsavat@ube.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2007
REGISTRATION
NO. : 0105550104805
TAX
ID NO. : 3032819664
CAPITAL REGISTERED : BHT. 567,000,000
CAPITAL PAID-UP : BHT.
567,000,000
SHAREHOLDER’S PROPORTION : JAPANESE
: 100%
FISCAL YEAR CLOSING DATE : MARCH
31 [Former :
DECEMBER 31]
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. CHARUNYA PHICHITKUL,
THAI
PRESIDENT AND
CHIEF EXECUTIVE OFFICER
NO.
OF STAFF : 90
LINES
OF BUSINESS : INDUSTRIAL CHEMICALS
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on October 4,
2007 as a
private limited company
under the originally
registered name “UBE Fine Chemical [Asia] Co.,
Ltd.”, by Japanese groups,
with the business
objective to manufacture
and distribute industrial
chemicals to both
domestic and international
markets. On November
3, 2008, its
registered name was
changed to UBE
FINE CHEMICALS [ASIA]
CO., LTD. It
currently employs approximately
90 staff. The
subject is a
wholly owned subsidiary
of Ube Industries
Ltd., a world
leader in Caprolactam
and specialty chemicals
manufacturing in Japan.
The
subject’s registered address
is 18th Floor,
Sathorn Square Office
Tower, 98 North Sathorn Road,
Silom, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Hideyuki Sugishita |
|
Japanese |
59 |
|
Mr. Junichi Misumi |
|
Japanese |
57 |
|
Mr. Yuki Nishida |
|
Japanese |
52 |
|
Mr. Charunya Pichitkul |
|
Thai |
60 |
|
Mr. Anuchit Thiranuchit |
|
Thai |
55 |
|
Mr. Satoshi Kusano |
|
Japanese |
47 |
|
Mr. Shinji Hoshika |
|
Japanese |
53 |
|
Mr. Wachara Pattananitnirandorn |
|
Thai |
51 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Charunya Pichitkul is
the President and
Chief Executive Officer.
He is Thai
nationality with the
age of 60
years old.
Mr. Boonsom Puangmanee is
the Factory Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing, distributing and exporting of
petrochemicals mainly 1,6-Hexanediol (HDL) and 1,5-Pentanediol
(PDL). Its products
are derived from
the by-products of
Caprolactam production and
used as a
raw material for
Polyurethane and Polycarbonatedio production industry.
Its main applications
are interior and
finishing materials of
luxury car. The production
technology is licensed
by Ube Industries
Ltd., Japan
PRODUCTION CAPACITY
1,6-Hexanediol : 6,000
tons per annum
1,5-Pentanediol : 600
tons per annum
PURCHASE
Raw
materials are purchased
from suppliers both
domestic and overseas,
mainly in Japan,
Spain and Taiwan.
MAJOR
SUPPLIERS
Ube
Industries Ltd. : Japan
IRPC
Public Company Limited : Thailand
SALES
The products are
sold to manufacturers and end-users
both local and
overseas, mainly in
Malaysia, Indonesia, India
and Hong Kong.
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
T/T.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject currently employs
approximately 90 staff.
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 140/6
Moo 4, T. Tapong,
A. Muang, Rayong 21000.
Tel. : [66] 38 928-700, Fax. : [66] 38 928-865.
COMMENT
UBE
Fine Chemicals (Asia) Company Limited (UFA) was
established in October, 2007 as a new company of UBE Group
(Thailand). UFA is the first producer and distributor of
1,6-Hexanediol (HDL) and 1,5-Pentanediol (PDL) in Thailand and South East Asia
region. Production technology is
licensed by Ube Industries, a world leader in Caprolactam and Specialty Chemicals
manufacturing with over
50 years experience.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 100,000 divided
into 1,000 shares
of Bht. 100 each with
fully paid.
The
capital was increased
later as follows:
Bht. 250,000,000
on July 9,
2009
Bht. 550,000,000
on December 25,
2009
Bht. 567,000,000
on March 19,
2010
The
latest registered capital
was increased to Bht.
567,000,000 divided into
5,670,000 shares of
Bht. 100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at July
11, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ube Industries Ltd. Nationality: Japanese Address : 1-2-1
Shibaura Minato-ku, Tokyo,
Japan |
5,669,998 |
100.00 |
|
Mr. Charunya Pichitkul Nationality: Thai Address : 11
Soi Navathani 4,
Ramindra,
Kannayao, Bangkok |
1 |
- |
|
Mr. Anuchit Thiranuchit Nationality: Thai Address : 250/495
Moo 17, Salathammasop,
Thaveewatana, Bangkok |
1 |
- |
Total Shareholders : 3
Share Structure [as
at July 11,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
2 |
- |
|
Foreign-Japanese |
1 |
5,669,998 |
100.00 |
|
Total |
3 |
5,670,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Kamolthip
Lertwitworathep No. 4377
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Cash and Cash Equivalents
|
18,902,318 |
20,758,352 |
22,792,259 |
|
Trade Account & Other
Receivable |
48,385,378 |
44,991,670 |
4,065,944 |
|
Inventories |
103,260,385 |
88,608,427 |
6,888,723 |
|
Other Current Assets
|
5,304,492 |
4,876,278 |
3,833,682 |
|
|
|
|
|
|
Total Current Assets
|
175,852,573 |
159,234,727 |
37,580,608 |
|
Advance Payment for Construction |
- |
- |
3,078,873 |
|
Fixed Assets |
1,601,553,465 |
1,640,846,309 |
1,501,045,451 |
|
Intangible Assets |
15,934,790 |
17,337,142 |
18,739,494 |
|
Deferred Income Tax
Assets |
29,963,891 |
37,011,655 |
340,480 |
|
Other Non-current Assets |
311,582 |
641,208 |
552,115 |
|
Total Assets |
1,823,616,301 |
1,855,071,041 |
1,561,337,021 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Short-term Loan from Financial Institution |
440,887,688 |
213,273,730 |
- |
|
Trade Account & Other
Payable |
62,909,463 |
50,479,528 |
33,569,914 |
|
Current Portion of
Long-term Loan from Financial Institution |
269,303,125 |
278,529,125 |
- |
|
Accrued Income Tax |
- |
- |
9,446,236 |
|
Other Current Liabilities |
6,593,767 |
5,993,971 |
11,259,559 |
|
|
|
|
|
|
Total Current Liabilities |
779,694,043 |
548,276,354 |
54,275,709 |
|
Long-term Loan from
Financial Institution - Net of
Current Portion |
538,606,250 |
835,587,375 |
924,037,150 |
|
Reserve for Long-term
Employee Benefit |
2,088,766 |
1,889,265 |
1,702,398 |
|
Total Liabilities |
1,320,389,059 |
1,385,752,994 |
980,015,257 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100 par
value authorized, issued
and fully paid
share capital 5,670,000 shares
|
567,000,000 |
567,000,000 |
567,000,000 |
|
|
|
|
|
|
Capital Paid |
567,000,000 |
567,000,000 |
567,000,000 |
|
Retained Earning - Unappropriated
[Deficit] |
[63,772,758] |
[97,681,953] |
14,321,764 |
|
Total Shareholders' Equity |
503,227,242 |
469,318,047 |
581,321,764 |
|
Total Liabilities & Shareholders' Equity |
1,823,616,301 |
1,855,071,041 |
1,561,337,021 |
PROFIT & LOSS ACCOUNT
|
Sales |
2012 |
2011 |
2010 [Adjusted] |
|
|
|
|
|
|
Sales Income |
654,440,949 |
190,740,722 |
29,654,934 |
|
Gain on Exchange
Rate |
47,261,059 |
- |
51,074,913 |
|
Other Income |
1,530,070 |
935,475 |
670,083 |
|
Total Sales |
703,232,078 |
191,676,197 |
81,399,930 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
580,823,361 |
205,842,135 |
28,303,918 |
|
Selling Expenses |
20,589,088 |
3,136,700 |
- |
|
Administrative Expenses |
44,740,055 |
62,456,381 |
26,889,056 |
|
Loss on Exchange
Rate |
- |
62,478,077 |
- |
|
Total Expenses |
646,152,504 |
333,913,293 |
55,192,974 |
|
|
|
|
|
|
Profit / Loss] before Financial
Cost & Income Tax |
57,079,574 |
[142,237,096] |
26,206,956 |
|
Financial Cost |
[16,122,615] |
[6,782,229] |
[1,420,993] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax
|
40,956,959 |
[149,019,325] |
24,785,963 |
|
Income Tax |
[7,047,764] |
37,015,608 |
[9,512,810] |
|
Net Profit / [Loss] |
33,909,195 |
[112,003,717] |
15,273,153 |
BALANCE SHEET
[BAHT]
On July 25,
2013, the company
changed its fiscal year
end from December
31 to March
31, in accordance
with the companies
in the group.
The
latest financial figures
published for March
31, 2013 was :
ASSETS
|
Current Assets |
March
31, 2013 |
|
|
|
|
Cash and Cash Equivalents
|
30,244,369 |
|
Trade Account & Other
Receivable |
52,149,279 |
|
Inventories |
103,872,785 |
|
Other Current Assets
|
6,313,002 |
|
|
|
|
Total Current Assets
|
192,579,435 |
|
Fixed Assets |
1,592,163,129 |
|
Intangible Assets |
15,589,004 |
|
Deferred Income Tax
Assets |
29,939,063 |
|
Other Non-current Assets |
301,580 |
|
Total Assets |
1,830,572,211 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
March 31,
2013 |
|
|
|
|
Short-term Loan from Financial Institution |
457,173,990 |
|
Trade
Account & Other Payable |
108,748,929 |
|
Current
Portion of Long-term
Loan from Financial Institution |
257,666,500 |
|
Other
Current Liabilities |
10,072,940 |
|
|
|
|
Total Current Liabilities |
833,662,359 |
|
Long-term
Loan from Financial
Institution - Net of
Current Portion |
515,333,000 |
|
Reserve
for Long-term Employee
Benefit |
2,141,983 |
|
Total
Liabilities |
1,351,137,342 |
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
Share
capital : Baht 100 par value
authorized, issued and
fully paid share
capital 5,670,000 shares |
567,000,000 |
|
|
|
|
Capital
Paid |
567,000,000 |
|
Retained Earning - Unappropriated [Deficit] |
[87,565,131] |
|
Total Shareholders' Equity |
479,434,869 |
|
Total Liabilities &
Shareholders' Equity |
1,830,572,211 |
PROFIT &
LOSS ACCOUNT
For the
period from January
1, 2013 to
March 31, 2013:
|
Sales |
March
31, 2013 |
|
|
|
|
Sales Income |
107,434,039 |
|
Gain on Exchange Rate |
54,381,772 |
|
Other Income |
15,883 |
|
Total Sales |
161,831,694 |
|
Expenses |
|
|
|
|
|
Cost of Goods
Sold |
144,863,551 |
|
Selling Expenses |
2,007,170 |
|
Administrative Expenses |
35,680,781 |
|
Total Expenses |
182,551,502 |
|
|
|
|
Profit / Loss] before Financial
Cost Income Tax |
[20,719,808] |
|
Financial Cost |
[3,047,737] |
|
|
|
|
Profit / [Loss] before Income Tax
|
[23,767,545] |
|
Income Tax |
[24,828] |
|
Net Profit / [Loss] |
[23,792,373] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.23 |
0.29 |
0.69 |
|
QUICK RATIO |
TIMES |
0.09 |
0.12 |
0.49 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.41 |
0.12 |
0.02 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.36 |
0.10 |
0.02 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
64.89 |
157.12 |
88.84 |
|
INVENTORY TURNOVER |
TIMES |
5.62 |
2.32 |
4.11 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
26.99 |
86.10 |
50.04 |
|
RECEIVABLES TURNOVER |
TIMES |
13.53 |
4.24 |
7.29 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
39.53 |
89.51 |
432.91 |
|
CASH CONVERSION CYCLE |
DAYS |
52.34 |
153.71 |
(294.03) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
88.75 |
107.92 |
95.44 |
|
SELLING & ADMINISTRATION |
% |
9.98 |
34.39 |
90.67 |
|
INTEREST |
% |
2.46 |
3.56 |
4.79 |
|
GROSS PROFIT MARGIN |
% |
18.70 |
(7.43) |
179.05 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
8.72 |
(74.57) |
88.37 |
|
NET PROFIT MARGIN |
% |
5.18 |
(58.72) |
51.50 |
|
RETURN ON EQUITY |
% |
6.74 |
(23.87) |
2.63 |
|
RETURN ON ASSET |
% |
1.86 |
(6.04) |
0.98 |
|
EARNING PER SHARE |
BAHT |
5.98 |
(19.75) |
2.69 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.72 |
0.75 |
0.63 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.62 |
2.95 |
1.69 |
|
TIME INTEREST EARNED |
TIMES |
3.54 |
(20.97) |
18.44 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
243.10 |
543.20 |
|
|
OPERATING PROFIT |
% |
(140.13) |
(642.75) |
|
|
NET PROFIT |
% |
130.28 |
(833.34) |
|
|
FIXED ASSETS |
% |
(2.39) |
9.31 |
|
|
TOTAL ASSETS |
% |
(1.70) |
18.81 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is 243.1%. Turnover has increased from THB
190,740,722.00 in 2011 to THB 654,440,949.00 in 2012. While net profit has
increased from THB -112,003,717.00 in 2011 to THB 33,909,195.00 in 2012. And
total assets has decreased from THB 1,855,071,041.00 in 2011 to THB
1,823,616,301.00 in 2012.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
18.70 |
Acceptable |
Industrial Average |
32.88 |
|
Net Profit Margin |
5.18 |
Impressive |
Industrial Average |
2.17 |
|
Return on Assets |
1.86 |
Satisfactory |
Industrial Average |
1.87 |
|
Return on Equity |
6.74 |
Impressive |
Industrial Average |
3.12 |
Gross Profit Margin used to assess a firm's financial health by revealing
the proportion of money left over from sales 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 18.7%. 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 5.18%, higher figure when compared with those
of its average competitors in the same industry, indicated that business was an
efficient operator in a dominant
position within its industry.
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 1.86%.
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. Return on Equity ratio is 6.74%, higher figure when compared
with those of its average competitors in the same industry, indicated that
business was an efficient profit in a
dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.23 |
Risky |
Industrial Average |
1.69 |
|
Quick Ratio |
0.09 |
|
|
|
|
Cash Conversion Cycle |
52.34 |
|
|
|
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 0.23 times in 2012, decreased from 0.29 times, then the company may not be
efficiently using its current assets. 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 0.09 times in 2012,
decreased from 0.12 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 53 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.72 |
Acceptable |
Industrial Average |
0.40 |
|
Debt to Equity Ratio |
2.62 |
Risky |
Industrial Average |
0.66 |
|
Times Interest Earned |
3.54 |
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 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 3.55 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 0.72 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
0.41 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.36 |
Deteriorated |
Industrial Average |
0.86 |
|
Inventory Conversion Period |
64.89 |
|
|
|
|
Inventory Turnover |
5.62 |
Impressive |
Industrial Average |
5.54 |
|
Receivables Conversion Period |
26.99 |
|
|
|
|
Receivables Turnover |
13.53 |
Impressive |
Industrial Average |
4.35 |
|
Payables Conversion Period |
39.53 |
|
|
|
The company's Account Receivable Ratio is calculated as 13.53 and 4.24
in 2012 and 2011 respectively. This ratio measures the efficiency of the
company in managing its trade debtors to generate sales. 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 157 days at the
end of 2011 to 65 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 2.32 times in year 2011 to 5.62 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.36 times and 0.1
time 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
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.84 |
|
UK Pound |
1 |
Rs.98.41 |
|
Euro |
1 |
Rs.80.03 |
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.