MIRA INFORM REPORT

 

 

Report No. :

308110

Report Date :

17.02.2015

 

IDENTIFICATION DETAILS

 

Name :

SCG  PLASTICS  CO.,  LTD.

 

 

Formerly Known As :

SIAM  CHEMICAL  TRADING  CO., LTD.

 

 

Registered Office :

1  Siam  Cement  Road,  Kwaeng  Bangsue, Khet  Bangsue,  Bangkok  10800

 

 

Country :

Thailand

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

25.04.1995

 

 

Com. Reg. No.:

0105538050741

 

 

Legal Form :

Private  Limited  Company

 

 

Line of Business :

Subject is distributer and exporter of petrochemical.

 

 

No. of Employee :

120

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 and address

 

SCG  PLASTICS  CO.,  LTD.

 

[FORMER : CCC  CHEMICAL  COMMERCE  CO.,  LTD.]

 

 

SUMMARY

 

BUSINESS  ADDRESS                          :           1  SIAM  CEMENT  ROAD,  KWAENG  BANGSUE, 

KHET  BANGSUE,  BANGKOK  10800, THAILAND

TELEPHONE                                         :           [66]  2586-6262,  2586-5809,  2586-5897,  2586-5988

FAX                                                      :           [66]  2586-5514,  2586-2093,  2586-3907             

E-MAIL  ADDRESS                                :           chalermh@scg.co.th

sirinutj@scg.co.th

REGISTRATION  ADDRESS                  :           SAME  AS  BUSINESS  ADDRESS       

ESTABLISHED                                     :           1995    

REGISTRATION  NO.                           :           0105538050741  [Former : [1]  1129/]2538]         

TAX  ID  NO.                                         :           3011580127

CAPITAL REGISTERED                                     :           BHT.  10,000,000

CAPITAL PAID-UP                                :           BHT.    5,000,000

FISCAL YEAR CLOSING DATE              :           DECEMBER  31           

SHAREHOLDER’S  PROPORTION         :           THAI        :    100%

LEGAL  STATUS                                  :           PRIVATE  LIMITED  COMPANY

EXECUTIVE                                          :           MR.  SAKCHAI  PATIPARNPREECHAVUD,  THAI

                                                                        MANAGING  DIRECTOR

NO.  OF  STAFF                                               :           120

LINES  OF  BUSINESS                          :           PETROCHEMICAL 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  April  25,  1995  as  a  private  limited  company  under  the  registered name “Siam  Chemical  Trading  Co., Ltd.”  with  the  business  objective  to  distribute  petrochemical  products,  specialized  in  Poly-olefins  to  both  domestic  and  export  markets. On  January 2, 2002,  subject’s  name  was  changed to “CCC  Chemical  Commerce  Co., Ltd.”,  and  finally changed  to “SCG  PLASTICS  CO.,  LTD.”  on  January  3,  2007. It  employs  approximately  120  staff.  

 

At  present,  subject  is  a  wholly  owned  subsidiary  of  “SCG  Chemicals  Co.,  Ltd.” [Former : Cementhai  Chemicals  Co.,  Ltd.],  which  is  a  subsidiary  of  Siam  Cement  Public  Company  Limited,  and  is  also  a  member  of  The  Siam  Cement  Group  in  petrochemicals  business,  which  has  over  30  subsidiaries  and  affiliated  companies. 

 

The  subject’s  registered  address  is  1 Siam Cement  Rd.,  Kwaeng  Bangsue,  Khet  Bangsue,  Bangkok  10800,  and  this  is  the  subject’s  current  operation  address.  

 

 

THE  BOARD  OF  DIRECTORS

           

     Name

 

Nationality

Age

 

 

 

 

Mr. Rungroj  Rangsiyopas

 

Thai

52

Mr. Somchai  Wangwattanapanich

 

Thai

56

Mr.  Cholanat  Yanaranop    

 

Thai

56

Mr. Sakchai  Patiparnpreechavud

 

Thai

48

Mr. Chavalit  Ekabut

 

Thai

56

Mr.  Yuttana  Jiamtragan

 

Thai

52

 

 

AUTHORIZED  PERSON

 

Any  two  of  the  above  directors  can  jointly sign on  behalf  of  the  subject  with 

company’s  affixed.


 

MANAGEMENT

 

Mr. Sakchai  Patiparnpreechavud  is  the  Managing  Director.

He  is  Thai  nationality  with  the  age  of  48  years  old.

 

Mr. Visith  Trichaivichitkul  is  the  Export  Sales  Manager.

He  is  Thai  nationality.

 

Mr. Chaovalit  Treechak  is  the   Local  Sales  Manager.

He  is  Thai  nationality.

 

 

BUSINESS  OPERATIONS

 

The  subject’s  activities  are  distributor  and  exporter   wide  range  of  Poly-olefins,  such  as  Polyethylene  [PE],  [EL-Lene  Polyethylene  Plastic  Resin],  Polypropylene  [PP],  [EL-Pro  Polypropylene Plastic  Resin],  High  Density  Polyethylene [HDPE],  Low Density Polyethylene [LDPE], and  Linear  Low Density Polyethylene [LLDPE],  as well  as  Pulverized  Powders  and  Compounded  Resins.

 

 

PURCHASE

 

100% of  the  products  is  purchased  from associated  companies  in  Petrochemical  Business   of  Siam  Cement  Group.

 

 

MAJOR  SUPPLIERS

 

Thai  Polyethylene  Co.,  Ltd                   :  Thailand

Thai  Polypropylene  Co., Ltd.     :  Thailand

SCG  Polyolefins  Co.,  Ltd.                    :  Thailand

 

 

SALES  [LOCAL]

 

40%  of  its  products  is  sold  locally  to  manufacturers,  wholesalers  and  end-users.

 


 

EXPORT  [COUNTRIES]

 

60%  of  the  products  is  exported  to  Hong  Kong,  Indonesia,  Malaysia,  India,  Singapore, 

Australia,  Republic  of  China,  Vietnam,  Japan,  Myanmar,  Laos,  Taiwan,  Chile,  Pakistan,

United  States  of  America,  Bangladesh  and  Philippines.

 

The  subject  has  representatives  and  overseas  branches  in  Guizhou,  Shanghai,  Myanmar,  Laos  and  Vietnam.

 

 

MAJOR CUSTOMERS

 

CCC  Chemical  Commerce  [China]  Co., Ltd.     :   Republic  of  China

Grand  Siam  Composites  Co., Ltd.                                :   Thailand

SCG  Trading  [U.S.A]  Inc.                                             :   United  States  of  America

Universal  Polymer  Co.,  Ltd.                              :   Thailand

MC  Industrial  Chemical  Co.,  Ltd.                                 :   Thailand

Mehran  Plastics  Industries  Pvt.  Ltd.                 :   Pakistan

 

 

SUBSIDIARIES  &  AFFILIATED  COMPANIES

 

The  Siam Cement  Group  [Petrochemical  Business]:

 

Name

Country

Line  of  Business

 

 

 

Thai  Polyethylene  Co., Ltd.

Thailand

Manufacturer  of  polyethylene  [HDPE,  MDPE,  LLDPE]

Thai  Polypropylene  Co., Ltd.

Thailand

Manufacturer  of  polypropylene

SCG  Plastics  Co.,  Ltd.

Thailand

Trading  company

SCG  Performance  Chemicals

   Co.,  Ltd.

 

Thailand

 

Trading  company

SCG  Polyolefins  Co.,  Ltd.

Thailand

Trading  company

Rayong  Engineering & Plant 

   Service  Co.,  Ltd.

 

Thailand

 

Engineering  and  plant  service

RIL  1996  Co.,  Ltd.

Thailand

Industrial  estate

Rayong  Pipeline  Co.,  Ltd.

Thailand

Rights  of  way  and  use

Map  Ta  Phut  Tank  Terminal 

   Co.,  Ltd.

 

Thailand

 

Warehouse  and  transportation  services

Map Ta Phut  Olefins Co., Ltd.

Thailand

Raw material  for  plastic  resins

Thai  Plastic  and  Chemicals Plc.

Thailand

Plastic  resins  and  PVC compound

TPC Paste  Resin Co., Ltd.

Thailand

PVC paste  resins

Nawa Plastic  Industries  Co., Ltd.

Thailand

PVC pipe and  PVC products

Nawa Intertech  Co., Ltd.

Thailand

Molding and etc.

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   on  the  credits  term  of  30-60  days.

Exports  are  against  L/C  at  sight  and  T/T.

 

 

BANKING

 

Kasikornbank  Public  Co., Ltd.          

 [Head  Office  :  1  Kasikorn  Lane,  Rajburana  Rd.,  Rajburana,  Bangkok ]

 

The  Siam  Commercial  Bank  Public Co., Ltd.         

 [Head  Office  :  9  Ratchadapisek  Rd.,  Ladyao,  Jatujak,  Bangkok  10900]

 

 

EMPLOYMENT

 

The  subject  employs  approximately  120  office  staff  and  sales  staff.

 

 

LOCATION DETAILS

 

The  premise  is  rented  for  administrative  office  at  the heading  address.  Premise  is  located  in commercial/residential  area.

 


 

COMMENT

 

Subject  was  formed  in  1995 as  a distributor  and  exporter  of  petrochemical  products.  Its  products  are mostly  for  industrial users.  With  its  accumulated  experience  for  two decades,  the  subject  has  gained  creditability  and  comprehensive  network  in  the  Thai  industry.  Generally,  its  business  is  solid  and  growing  considerably.

 

 

FINANCIAL  INFORMATION

 

The  capital  was  registered  at  Bht.  10,000,000  divided  into  100,000  shares  of  Bht. 100  each,  with  the  current  capital  paid-up  at  Bht.  5,000,000  or  100,000  shares  of  Bht.  50  each.

 

 

THE  SHAREHOLDERS  LISTED  WERE    

 

[as  at  April  28, 2014]  at  Bht.  5,000,000  of  capitalization.

 

NAME

HOLDING

%

 

 

 

SCG  Chemicals Co., Ltd.

Nationality: Thai

Address     : 1 Siam  Cement  Rd.,  Kwaeng  Bangsue, 

                    Khet  Bangsue,  Bangkok

99,998

100.00

Mrs. Veeranuch  Setthamethikul

Nationality: Thai

Address     : 40/29  Moo  6,  Kukot,  Lamlukka, 

                    Pathumthani

         1

-

Ms. Chaliya  Bhanubhongs

Nationality: Thai

Address     : 32/29  Ladprao  23 Rd.,  Kwaeng  Chankasem,

                    Khet  Chatuchak,  Bangkok

        1

-

 

Total   Shareholders  :  3

 

Share  Structure  [as  at  April  28,  2014]

 

Nationality

Shareholders

No. of  Share

% Shares

 

 

 

 

Thai

3

100,000

100.00

Foreign

-

-

-

 

Total

 

3

 

100,000

 

100.00

 


 

NAME OF AUDITOR & CERTIFIED PUBLIC  ACCOUNTANT  NO.

 

Ms. Sureerat  Thong-aroonsaeng  No.  4409

 

 

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     

197,625,310

171,208,542

220,959,130

Trade  Accounts  and Other  Receivable

6,045,512,042

5,020,080,613

5,171,531,741

Short-term Loan to Related Company

-

-

111,447,597

Goods  Available for Sale

174,927,305

368,973,174

137,245,954

Value Added Tax  Receivable

334,824,389

348,726,292

381,017,126

Other  Current  Assets                  

65,567,094

61,085,553

45,270,229

 

 

 

 

Total  Current  Assets                

6,818,456,140

5,970,074,174

6,067,107,777

 

Investment  in Subsidiaries                      

 

2,607,053,578

 

2,607,053,578

 

2,607,053,578

Other Long-term Investment

103,809

61,198

61,198

Building  and Equipment   

25,527,830

19,739,634

25,867,528

Intangible  Assets            

40,598,644

60,132,029

73,613,648

Other Non-current  Assets

447,191

594,019

997,692

 

Total  Assets                 

 

9,492,187,192

 

8,657,654,632

 

8,774,701,421

 


 

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

 

 

Current Liabilities

2013

2012

2011

 

 

 

 

Bank Overdraft

10,770,268

26,000,128

7,954,380

Trade  Accounts  and Other  Payable

6,551,571,051

5,883,919,441

6,831,617,645

Short-term Loan from Related Company

2,443,763,083

2,068,650,496

1,158,684,448

Accrued  Income Tax

28,283

69,566,686

96,738,114

Other  Current  Liabilities             

4,326,801

4,048,797

4,371,291

 

Total Current Liabilities

 

9,010,459,486

 

8,052,185,548

 

8,099,365,878

 

Deferred  Income Tax  Liabilities 

 

12,405,601

 

9,316,654

 

14,639,535

Provision for Employee  Benefit 

16,537,433

13,658,700

4,339,712

 

Total  Liabilities            

 

9,039,402,520

 

8,075,160,902

 

8,118,345,125

 

 

 

 

Shareholders' Equity

 

 

 

 

 

 

 

 Share  capital : Baht  100  value 

  Authorized  &  issued  share  capital 

  100,000  shares

 

 

10,000,000

 

 

10,000,000

 

 

10,000,000

 

Capital  Paid                      

 

5,000,000

 

5,000,000

 

5,000,000

Retained Earning

  Appropriated  for Statutory Reserve

 

1,000,000

 

1,000,000

 

1,000,000

  Unappropriated                   

446,750,583

576,493,730

650,356,296

Other Components  of Equity

34,089

-

-

 

Total  Shareholders' Equity

 

452,784,672

 

582,493,730

 

656,356,296

 

Total  Liabilities  & Shareholders' 

  Equity

 

 

9,492,187,192

 

 

8,657,654,632

 

 

8,774,701,421

                                                   


 

PROFIT  &  LOSS  ACCOUNT

 

 

 Revenue

2013

2012

2011

 

 

 

 

Sales  Income                            

75,083,380,569

68,788,922,777

65,593,646,442

Other  Income                 

602,312,715

189,112,443

157,569,302

Gain  on  Exchange Rate

-

123,006,512

342,387,889

 

Total  Revenues           

 

75,685,693,284

  

69,101,041,732

 

66,093,603,633

 

Expenses

 

 

 

 

 

 

 

Cost  of  Goods  Sold                  

73,287,635,468

66,544,237,250

63,582,265,868

Selling  Expenses

1,022,694,708

1,196,721,122

1,028,610,528

Administrative  Expenses

686,137,966

622,406,566

592,764,344

Loss  on Exchange Rate

106,250,133

-

-

 

Total Expenses             

 

1,815,082,807

 

68,363,364,938

 

65,203,640,740

 

Profit before Financial Cost  &

   Income Tax

 

 

582,975,009

 

 

737,676,794

 

 

889,962,893

Financial Cost

[69,375,834]

[45,496,077]

[36,449,041]

 

Profit  before  Income Tax

 

513,599,175

 

692,180,717

 

853,513,852

Income  Tax

[73,342,322]

[121,043,283]

[209,473,463]

 

Net  Profit / [Loss]

 

440,256,853

 

571,137,434

 

644,040,389

 

 

 


 

FINANCIAL  ANALYSIS

 

ITEM

UNIT

2013

2012

2011

 

 

 

 

 

LIQUIDITY RATIO

 

 

 

 

CURRENT RATIO

TIMES

0.76

0.74

0.75

QUICK RATIO

TIMES

0.69

0.64

0.68

 

 

 

 

 

ACTIVITY RATIO

 

 

 

 

FIXED ASSETS TURNOVER

TIMES

2,941.24

3,484.81

2,535.75

TOTAL ASSETS TURNOVER

TIMES

7.91

7.95

7.48

INVENTORY CONVERSION PERIOD

DAYS

0.87

2.02

0.79

INVENTORY TURNOVER

TIMES

418.96

180.35

463.27

RECEIVABLES CONVERSION PERIOD

DAYS

29.39

26.64

28.78

RECEIVABLES TURNOVER

TIMES

12.42

13.70

12.68

PAYABLES CONVERSION PERIOD

DAYS

32.63

32.27

39.22

CASH CONVERSION CYCLE

DAYS

(2.37)

(3.61)

(9.65)

 

 

 

 

 

PROFITABILITY RATIO

 

 

 

 

COST OF GOODS SOLD

%

97.61

96.74

96.93

SELLING & ADMINISTRATION

%

2.28

2.64

2.47

INTEREST

%

0.09

0.07

0.06

GROSS PROFIT MARGIN

%

3.19

3.72

3.83

NET PROFIT MARGIN BEFORE EX. ITEM

%

98.38

1.07

1.36

NET PROFIT MARGIN

%

0.59

0.83

0.98

RETURN ON EQUITY

%

97.23

98.05

98.12

RETURN ON ASSET

%

4.64

6.60

7.34

EARNING PER SHARE

BAHT

8,805.14

11,422.75

12,880.81

 

 

 

 

 

LEVERAGE RATIO

 

 

 

  

DEBT RATIO

TIMES

0.95

0.93

0.93

DEBT TO EQUITY RATIO

TIMES

19.96

13.86

12.37

TIME INTEREST EARNED

TIMES

1,064.79

16.21

24.42

 

 

 

 

 

ANNUAL GROWTH

 

 

 

 

SALES GROWTH

%

9.15

4.87

 

OPERATING PROFIT

%

9,913.95

(17.11)

 

NET PROFIT

%

(22.92)

(11.32)

 

FIXED ASSETS

%

29.32

(23.69)

 

TOTAL ASSETS

%

9.64

(1.33)

 

 


 

ANNUAL GROWTH : IMPRESSIVE

 

An annual sales growth is 9.15%. Turnover has increased from THB 68,788,922,777.00 in 2012 to THB 75,083,380,569.00 in 2013. While net profit has decreased from THB 571,137,434.00 in 2012 to THB 440,256,853.00 in 2013. And total assets has increased from THB 8,657,654,632.00 in 2012 to THB 9,492,187,192.00 in 2013.                

                       

 

PROFITABILITY : SATISFACTORY

 

PROFITABILITY RATIO

 

Gross Profit Margin

3.19

Impressive

Industrial Average

2.51

Net Profit Margin

0.59

Deteriorated

Industrial Average

1.36

Return on Assets

4.64

Acceptable

Industrial Average

6.71

Return on Equity

97.23

Impressive

Industrial Average

17.50

 

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  3.19%. 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 0.59%. 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 4.64%.

 

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 97.23%, higher figure when compared with those of its average competitors in the same industry, indicated that business was an efficient profits 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 : ACCEPTABLE

 

LIQUIDITY RATIO

 

Current Ratio

0.76

Risky

Industrial Average

1.63

Quick Ratio

0.69

 

 

 

Cash Conversion Cycle

(2.37)

 

 

 

 

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 0.76 times in 2013, increased from 0.74 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 0.69 times in 2013, increased from 0.64 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 -3 days.

 

Trend of the average competitors in the same industry for last 5 years

Current Ratio                 Uptrend

 

 

LEVERAGE : ACCEPTABLE

 

LEVERAGE RATIO

 

Debt Ratio

0.95

Acceptable

Industrial Average

0.58

Debt to Equity Ratio

19.96

Risky

Industrial Average

1.38

Times Interest Earned

1,064.79

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 1064.79 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 0.95 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                                 Downtrend

Times Interest Earned                Stable

 

 

ACTIVITY : EXCELLENT

 

ACTIVITY RATIO

 

Fixed Assets Turnover

2,941.24

Impressive

Industrial Average

-

Total Assets Turnover

7.91

Impressive

Industrial Average

4.95

Inventory Conversion Period

0.87

 

 

 

Inventory Turnover

418.96

Impressive

Industrial Average

14.31

Receivables Conversion Period

29.39

 

 

 

Receivables Turnover

12.42

Impressive

Industrial Average

5.17

Payables Conversion Period

32.63

 

 

 

 

The company's Account Receivable Ratio is calculated as 12.42 and 13.70 in 2013 and 2012 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 2013 decreased from 2012. 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 decreased from 2 days at the end of 2012 to 1 day at the end of 2013. This represents a positive trend. And Inventory turnover has increased from 180.35 times in year 2012 to 418.96 times in year 2013.

 

The company's Total Asset Turnover is calculated as 7.91 times and 7.95 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                 Downtrend

Inventory Turnover                      Downtrend

Receivables Turnover                  Downtrend

 

 

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.20

UK Pound

1

Rs.95.99

Euro

1

Rs.71.00

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ASH

 

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%)

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