MIRA
INFORM REPORT
|
Report Date : |
22.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
JOTUN THAILAND LIMITED |
|
|
|
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Registered Office : |
700/353 Moo 6, |
|
|
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Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
21.08.1967 |
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|
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Com. Reg. No.: |
0105510003790 |
|
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|
|
Legal Form : |
Private Limited Company |
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|
|
|
Line of Business : |
Manufacturing,
Distributing And Exporting
|
|
|
|
|
No. of Employees : |
550 |
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 |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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 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
JOTUN THAILAND LIMITED
SUMMARY
BUSINESS ADDRESS : 700/353 MOO 6, AMATA
CITY INDUSTRIAL ESTATE,
[BIP II],
T. DONHUAROH, A.
MUANG,
CHONBURI 20000,
THAILAND
TELEPHONE : [66] 38
214-824-6
FAX : [66] 38
214-373-4
E-MAIL ADDRESS : info@jotun.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1967
REGISTRATION NO. : 0105510003790 [Former : 440/2510]
TAX ID NO. : 3101007145
CAPITAL REGISTERED : BHT.
428,564,000
CAPITAL PAID-UP : BHT.
428,564,000
SHAREHOLDER’S PROPORTION : NORWEGIAN :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
GUNNAR THORESEN, NORWEGIAN
MANAGING DIRECTOR
NO. OF STAFF : 550
LINES OF BUSINESS : INDUSTRIAL PAINTS
MANUFACTURER, DISTRIBUTOR
AND 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 August
21, 1967 as
a private limited
company under the name
style JOTUN THAILAND
LIMITED, by Norwegian
groups, with the
business objective to
manufacture and distribute
wide range of industrial
paints to both
domestic and overseas
markets. The subject was
initially a subsidiary of
Jotun A/S, Norway.
On June 25,
2013, the subject has
entered into the
purchase and sale
agreement with
Jotun Powder Coatings
[Thailand] Limited, the
related company by
purchasing of the
entire business of
Jotun Powder Coatings
[Thailand] Limited.
At present, the
subject’s major shareholders
are Jotun Powder
Coatings A/S and
Jotun A/S of
Norway, with holding
around 80.40% and
19.60% of the
subject’s shares respectively.
It currently employs
approximately 550 staff.
The subject was
granted a promotional privilege from the
Board of Investment
[BOI] for the
production. It received
ISO 9002 certificate
from BVQI in 1996.
The subject is
the first paint
and powder coatings
company in Thailand
to receive the
ISO 14001 certification from
the Thailand Environmental Institute
[TEI].
The subject’s registered
address is 700/353
Moo 6, Amata City
Industrial Estate,
[BIP II], T.
Donhuaroh, A. Muang, Chonburi
20000, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Gunnar Thoresen |
[x] |
Norwegian |
63 |
|
Mr. Chew Ai Leng
Martin |
|
Singaporean |
47 |
|
Mr. Baard Kristian Tonning |
|
Norwegian |
46 |
AUTHORIZED PERSON
The mentioned director
[x] signs on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Gunnar Thoresen
is the Managing Director.
He is Norwegian
nationality with the
age of 63
years old.
Mr. Pornchai Phaungsuwan
is the Sales &
Marketing Manager.
He is Thai
nationality with the
age of 52
years old.
Mr. Attapon Pongpattanarak is
the General Sales
Manager [Protective/Marine].
He is Thai
nationality.
Mr. Natthasorn Siangsuebchart is
the General Sales
Manager [Decorative Project].
He is Thai
nationality.
Mr. Somchai Kaewson is
the Financial Manager.
He is Thai nationality.
Mr. Bottawadi Na
Chiengmai is the
Human Resource Manager.
He is Thai
nationality.
Ms. Sujitra Kosawanna is
the Factory Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing, distributing
and exporting wide
range of industrial
paints and coatings including
decorative paints, marine
coatings, protective coatings
and powder coatings
DECORATIVE PAINTS
STRAX, plastic emulsion
paint
JOTAPLAST, interior plastic
emulsion paint
PIONEER, Chlorinatie rubber-based
fungicidal paint for
use on plaster
and concrete
GARDE ENAMEL, enamel
based on an
alkyd resin
CIRO, Pliotite-based clear
primer/sealer
JOTUN VARNISH, Clear
varnish based on a
polyurethane vehicle
MARINE AND
INDUSTRIAL COATINGS
PILOT, conventional paints,
including primers, intermediate
coats and topcoats.
PIONEER, coatings
TANKGUARD, an intermediate
coat and finish
coat
SECURIT/BARRIER, Two-pack zine-rich
primers based on
epoxy / polyamide binder
POLYGUARD, Albino coat-tar
epoxy coating supplied in
various colours
ANTIFOULINGS, marine product
STRONGCOAT/RESIST HB, Inorganic
zinc silicate coatings
CTE 82/JOTAGUARD, Two-pack
high-build coal-tar epoxy
coatings
PROTECTIVE COATINGS
POWDER COATINGS
The subject produces
anticorrosion coatings comprising
functional powder coatings
and decorative powder
coatings, primarily for use on a
wide range of
products, such as
office furniture, home
appliances,
air-conditioners, computer, industrial pipelines [oil/gas/water] and
reinforced concrete bars. Its products include
powder coatings, epoxy
powder, polyester powder
and epoxy-polyester powder.
It sold primarily
to Original Equipment
Manufacturers [OEMs]. The
products have been
transferred its production
activity from Jotun
Powder Coatings [Thailand] Ltd.,
since 2013.
PRODUCTION
Industrial Paints :
30 million liters
per annum
Powder Coatings :
8,000 tons per
annum
PURCHASE
50% of raw
materials and chemicals
are imported from Republic of
China, Japan, Germany, Taiwan,
Netherlands, India, Norway and United
Kingdom, and the remaining 50% is
purchased locally.
MAJOR SUPPLIERS
Jotun A/S : Norway
Jotun Powder Coatings
A/S : Norway
IRPC Public Company
Limited : Thailand
Lenso Corporation Public
Company Limited : Thailand
Mitsui & Co., Ltd. : Japan
Jotun [Malaysia] Sdn.
Bhd. : Malaysia
SALES [LOCAL]
The products are
sold locally to
contractors and dealers
with over 400
dealers in Bangkok
and provincial.
EXPORT
The products are
exported to Singapore,
Myanmar, Brunei, India,
Laos, Vietnam, Middle
East, Indonesia, Philippines,
Hong Kong, Republic
of China, Taiwan,
Cambodia, Japan, Korea,
U.S.A., Norway, Africa,
Canada, Australia, and Malaysia.
MAJOR CUSTOMERS
Kij Amnuaysup Limited
Partnership : Thailand
Krabi Amnuaysup Limited
Partnership : Thailand
Suksawat Paint and
Hardware Limited Partnership : Thailand
Tang Nguan Sang
Thai Homemart Co.,
Ltd. : Thailand
Nattakam Trading Limited
Partnership : 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
CREDIT
Sales are by
cash or on
the credits of
30-60-90 days.
Local bills are
paid by cash
or on the
credits of 30-60-90
days.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
The Siam Commercial
Bank Public Co., Ltd.
[Head Office : 9
Ratchadapisek Rd., Ladyao,
Jatujak, Bangkok 10900]
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
approximately 550 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is owned
for administrative office
and factory I at the
heading address. Premise is
located in an
industrial area.
Factory II is
located at 700/355
Moo 6, Amata City
Industrial Estate, [BIP
II],
T. Donhuaroh, A. Muang,
Chonburi 20000.
Tel.: [66] 38 468-744-5,
Fax: [66] 38
214-266-7, 38 468-755-6.
BRANCHES & SALES OFFICE
49/26, 28, 30, 32, 34, 36, 38, 40
Moo 12, Kingkaew
Road, T. Rajatheva, A. Bangplee,
Samutprakarn 10540,
Thailand. Tel.: [66] 2750-3355, Fax.: [66] 2750-3344.
COMMENT
Jotun Thailand Limited was established
over 40 years ago as the first international
paint company to invest
in Thailand as a
BIO promoted project. Jotun in
Thailand has been
very successful and well positioned in both paint
and powder industries
in Thailand due to the
fact that it
has invested comprehensive in
improving local competence.
Jotun ranks among the top five
decorative paint companies in
Thailand. It also exports to Cambodia,
Myanmar, Laos and Vietnam,
in which they
are expanding their
construction industry.
Through the years 2014, the
company has been sticking to its policy of sustainable growth through developing
products which suit market needs. Developing new markets and making new
investments based on this principle
allowed the company to maintain continual expansion.
FINANCIAL INFORMATION
The registered
capitalization was at
Bht. 4,500,000 divided
into 4,500 shares
of Bht. 1,000
each.
The capital was
increased later as
followings :
Bht. 14,000,000
on November 28,
1984
Bht. 84,000,000
on January 16,
1998
Bht. 428,564,000
on September 2,
2013
The latest registered
capital was increased
to Bht. 428,564,000 divided
into 428,564 shares
of Bht. 1,000 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
[as at March
31, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Jotun Powder Coatings
A/S Nationality : Norwegian Address : Norway |
344,565 |
80.40 |
|
Jotun A/S Nationality : Norwegian Address : Norway |
83,997 |
19.60 |
|
Mr. Peder Bohlin Nationality : Norwegian Address : Norway |
1 |
- |
|
Mr. Bjorn Naglestad Nationality : Norwegian Address : Norway |
1 |
- |
Total Shareholders : 4
Share Structure
[as at March
31, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign - Norwegian |
4 |
428,564 |
100.00 |
|
Total |
4 |
428,564 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Siriwan Surathepin No. 4604
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2013,
2012 & 2011
were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
167,684,684 |
59,956,200 |
22,870,866 |
|
Trade Account & Other Receivable |
962,722,686 |
686,491,210 |
615,016,280 |
|
Inventories |
394,121,096 |
222,345,589 |
339,903,136 |
|
Other Current Assets
|
24,123,868 |
7,394,815 |
3,858,076 |
|
|
|
|
|
|
Total Current Assets
|
1,548,652,334 |
976,187,814 |
981,648,358 |
|
|
|
|
|
|
Trade Account Receivable - Net of
Current Portion |
18,115,527 |
26,505,764 |
19,819,412 |
|
Fixed Assets |
509,689,409 |
329,352,259 |
369,451,736 |
|
Intangible Assets |
78,900,215 |
44,804,734 |
50,232,098 |
|
Deposit |
3,583,658 |
4,071,558 |
3,672,760 |
|
Total Assets |
2,158,941,143 |
1,380,922,129 |
1,424,824,364 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Short-term Loan from Financial Institution |
- |
- |
150,000,000 |
|
Trade Account & Other
Payable |
630,699,670 |
450,802,974 |
442,486,863 |
|
Current Portion of
Long-term Loan From Related Company |
75,000,000 |
75,000,000 |
50,000,000 |
|
Accrued Income Tax |
20,838,709 |
39,530,365 |
11,294,919 |
|
Other Current Liabilities |
10,519,940 |
7,345,687 |
73,843,207 |
|
|
|
|
|
|
Total Current Liabilities |
737,058,319 |
572,679,026 |
727,624,989 |
|
Long-term Loan, Net of
Current Portion |
150,000,000 |
75,000,000 |
150,000,000 |
|
Reserve for Employees’
Benefit |
36,169,899 |
41,957,364 |
38,955,560 |
|
Total Liabilities |
923,228,218 |
689,636,390 |
916,580,549 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share capital
428,564 shares in
2013, 84,000 shares
in 2012 & 2011 |
428,564,000 |
84,000,000 |
84,000,000 |
|
|
|
|
|
|
Capital Paid |
428,564,000 |
84,000,000 |
84,000,000 |
|
Premium on Share Capital |
1,250,000 |
1,250,000 |
1,250,000 |
|
Retained Earning Appropriated for Statutory Reserve |
7,150,000 |
7,150,000 |
7,150,000 |
|
Unappropriated |
798,748,925 |
598,885,739 |
415,843,815 |
|
Total Shareholders' Equity |
1,235,712,925 |
691,285,739 |
508,243,815 |
|
Total Liabilities & Shareholders' Equity |
2,158,941,143 |
1,380,922,129 |
1,424,824,364 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
2,932,864,149 |
2,595,649,345 |
2,195,340,992 |
|
Gain on Exchange
Rate |
5,032,600 |
8,763,838 |
- |
|
Others Income |
37,689,185 |
51,519,079 |
46,968,611 |
|
Total Revenues |
2,975,585,934 |
2,655,932,292 |
2,242,309,603 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,867,656,879 |
1,663,352,924 |
1,490,608,503 |
|
Selling Expenses |
514,264,189 |
439,569,742 |
400,304,563 |
|
Administrative Expenses |
335,022,896 |
297,686,958 |
259,604,419 |
|
Total Expenses |
2,716,943,964 |
2,400,609,624 |
2,150,517,485 |
|
|
|
|
|
|
Profit before Financial
Cost & Income Tax |
258,641,970 |
255,322,668 |
91,792,118 |
|
Financial Cost |
[8,285,005] |
[12,541,370] |
[12,854,825] |
|
Profit before Income Tax |
250,356,965 |
242,781,298 |
78,937,293 |
|
Income Tax |
[50,493,779] |
[59,739,374] |
[26,408,792] |
|
|
|
|
|
|
Net Profit / [Loss] |
199,863,186 |
183,041,924 |
52,528,501 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.10 |
1.70 |
1.35 |
|
QUICK RATIO |
TIMES |
1.53 |
1.30 |
0.88 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.75 |
7.88 |
5.94 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.36 |
1.88 |
1.54 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
77.02 |
48.79 |
83.23 |
|
INVENTORY TURNOVER |
TIMES |
4.74 |
7.48 |
4.39 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
119.81 |
96.53 |
102.25 |
|
RECEIVABLES TURNOVER |
TIMES |
3.05 |
3.78 |
3.57 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
123.26 |
98.92 |
108.35 |
|
CASH CONVERSION CYCLE |
DAYS |
73.58 |
46.40 |
77.13 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
63.68 |
64.08 |
67.90 |
|
SELLING & ADMINISTRATION |
% |
28.96 |
28.40 |
30.06 |
|
INTEREST |
% |
0.28 |
0.48 |
0.59 |
|
GROSS PROFIT MARGIN |
% |
37.78 |
38.24 |
34.24 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
8.82 |
9.84 |
4.18 |
|
NET PROFIT MARGIN |
% |
6.81 |
7.05 |
2.39 |
|
RETURN ON EQUITY |
% |
16.17 |
26.48 |
10.34 |
|
RETURN ON ASSET |
% |
9.26 |
13.26 |
3.69 |
|
EARNING PER SHARE |
BAHT |
466.36 |
2,179.07 |
625.34 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.43 |
0.50 |
0.64 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.75 |
1.00 |
1.80 |
|
TIME INTEREST EARNED |
TIMES |
31.22 |
20.36 |
7.14 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
12.99 |
18.23 |
|
|
OPERATING PROFIT |
% |
1.30 |
178.15 |
|
|
NET PROFIT |
% |
9.19 |
248.46 |
|
|
FIXED ASSETS |
% |
54.76 |
(10.85) |
|
|
TOTAL ASSETS |
% |
56.34 |
(3.08) |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 12.99%. Turnover has increased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
37.78 |
Deteriorated |
Industrial Average |
86.91 |
|
Net Profit Margin |
6.81 |
Impressive |
Industrial Average |
5.52 |
|
Return on Assets |
9.26 |
Impressive |
Industrial Average |
7.82 |
|
Return on Equity |
16.17 |
Satisfactory |
Industrial Average |
17.25 |
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 37.78%. 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 6.81%,
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. Return on Assets ratio is 9.26%, 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.
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 16.17%.
Trend of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
2.10 |
Impressive |
Industrial Average |
1.90 |
|
Quick Ratio |
1.53 |
|
|
|
|
Cash Conversion Cycle |
73.58 |
|
|
|
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 2.1 times in 2013, increased from 1.7 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 1.53 times in 2013,
increased from 1.3 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 74 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.43 |
Impressive |
Industrial Average |
0.72 |
|
Debt to Equity Ratio |
0.75 |
Impressive |
Industrial Average |
1.62 |
|
Times Interest Earned |
31.22 |
Impressive |
Industrial Average |
- |
Debt to Equity Ratio a measurement of how much suppliers, lenders, creditors
and obligors have committed to the company versus what the shareholders have
committed. A lower the percentage means that the company is using less leverage
and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 31.22 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 0.43 less than 0.5, most of the company's
assets are financed through equity.
Trend of the average competitors in the same industry for last 5 years
Debt Ratio Uptrend
Times Interest Earned Stable
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
5.75 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.36 |
Acceptable |
Industrial Average |
1.83 |
|
Inventory Conversion Period |
77.02 |
|
|
|
|
Inventory Turnover |
4.74 |
Acceptable |
Industrial Average |
6.59 |
|
Receivables Conversion Period |
119.81 |
|
|
|
|
Receivables Turnover |
3.05 |
Acceptable |
Industrial Average |
4.76 |
|
Payables Conversion Period |
123.26 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.05 and
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 49 days at the
end of 2012 to 77 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 7.48 times in year 2012 to 4.74 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.36 times and 1.88
times in 2013 and 2012 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the average competitors in the same industry for last 5 years
Fixed Assets Turnover Stable
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.81 |
|
|
1 |
Rs.100.06 |
|
Euro |
1 |
Rs.78.47 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
SHG |
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.