MIRA INFORM REPORT
|
Report No. : |
326694 |
|
Report Date : |
10.06.2015 |
IDENTIFICATION DETAILS
|
Name : |
IVAX PAPER CHEMICALS LIMITED |
|
|
|
|
Registered Office : |
150 Moo 10, T.
Thatoom, A. Srimahaphote, Prachinburi 25140 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
13.06.2005 |
|
|
|
|
Com. Reg. No.: |
0105548076751 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer,
Distributor and Exporter of Specialty Chemical. |
|
|
|
|
No. of Employees : |
55 |
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 has
had a strong economy due in part to industrial and agriculture exports - mostly
electronics, agricultural commodities, automobiles and parts, and processed
foods. Thailand 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 both 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. Government approved flood mitigation projects, worth
$11.7 billion, were started in 2012 to prevent a repeat. Thai growth slowed in
2013 and has remained low since, as the country faced political uncertainty and
a coup in May 2014. The interim government is implementing a special $11
billion short-term stimulus package and has approved a budget of more than $80
billion to aid an economic rebound.
|
Source
: CIA |
Company
name
IVAX PAPER CHEMICALS LIMITED
SUMMARY
BUSINESS ADDRESS : 150 MOO
10, T. THATOOM, A. SRIMAHAPHOTE,
PRACHINBURI 25140,
THAILAND
TELEPHONE : [66] 37
274-439
FAX : [66] 37
274-438
E-MAIL ADDRESS : salesthai@ivaxchem.com
REGISTRATION ADDRESS : SAME AS
BUSINESS ADDRESS
ESTABLISHED : 2005
REGISTRATION NO. : 0105548076751
TAX ID NO. : 3380086626
CAPITAL REGISTERED : BHT. 40,000,000
CAPITAL PAID-UP : BHT. 40,000,000
SHAREHOLDER’S PROPORTION : INDIAN
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. MAHAVEER
RAJ NAHATA, INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 55
LINES OF BUSINESS : SPECIALTY CHEMICAL
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 June
13, 2005 as
a private limited
company under the
registered name IVAX
PAPER CHEMICALS LIMITED
by Indian groups.
Its business objective
is to manufacture, distribute and
export specialty chemicals
for paper industry.
It currently employs
55 staff.
The subject’s registered
address is 150
Moo 10, T. Thatoom, A. Srimahaphote,
Prachinburi 25140, and
this is the
subject’s current operation
address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sharad Kumar
Nawalgaria |
|
Indian |
36 |
|
Mr. Kirati Kumar
Nawalgaria |
|
Indian |
68 |
|
Mr. Mahaveer Raj
Nahata |
|
Indian |
66 |
AUTHORIZED
PERSON
Anyone of
the above directors
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr.
Mahaveer Raj Nahata is the
Managing Director.
He is
Indian nationality with
the age of
66 years old.
BUSINESS
OPERATIONS
The subject
is engaged in manufacturing, distributing and exporting wide range of
specialty chemicals for
paper application. The
products are as
follows:
·
For Sizing
-
Alkaline size
system-with ASA/AKD
-
Binary size
system
-
One shot
chemicals
-
Neutral size
system with Cationic - Aninonic Rosin
Emulsion
-
Acid size
system
-
Surface sizing
·
For Retention
and Drainage
-
Single polymer
system
-
Dual polymer
system
-
Micro particle
system, bentonite/silica system
·
For Static
Control-Anti Slip-Inkjet Printing
-
Styrene and
acrylic co-polymers
·
For Broke
Control - Fluff Control -
Trash Control and
Lint Control
-
Acrylamide-Synthetic polymers
-
Starch based
polymers
·
For Dry
and Wet Strength
-
Acrylamides
- synthetic polymers
-
Starch based
polymers
·
For Improving
Stiffness - Strength - Burst
-
Starch based
polymer
·
Control/Cleaning Systems
-
Slime control
chemicals
-
Anti foam
and deforming agents
-
Boil out
chemicals
-
Continuous and
batch felt and
wire cleaning chemicals
deposit control
programs
BRAND NAME
“IVAX”
PURCHASE
Most of raw materials
are purchased from
local suppliers, the
remaining is imported
from India, United
Kingdom, Republic of
China and United
Arab Emirates.
MAJOR SUPPLIERS
Ivax Paper Chemicals
Ltd. : India
Ivax Paper Chemicals
Ltd. :
U.K.
Ivax Paper Chemical
International Ltd. :
United Arab Emirates
BASF [Thai] Ltd. : Thailand
SALES
80% of
the products is
sold locally to
manufacturers and end-users,
the remaining 20%
is exported to
United Kingdom, Japan,
Republic of China,
Singapore, Indonesia, Taiwan
and Malaysia.
MAJOR CUSTOMERS
Double A [1991]
Public Company Limited
Panjapol Paper
Industry Co., Ltd.
Panjapol Pulp
Industry Public Company
Limited
SUBSIDIARY
AND AFFILIATED COMPANY
The subject
is not found
to have any
subsidiary or affiliated
company here in
Thailand.
LITIGATION
Bankruptcy and
Receivership
There are
no litigation on
bankruptcy and receivership
cases filed against
the subject found
at Legal Execution
Department for the
past five years.
Others
There are
no legal suits
filed against the
subject according to
the past two
years.
CREDIT
Sales are
by cash or
on the credits
term of 30-60
days.
Local bills
are paid by
cash or on
the credits term
of 30-60 days.
Imports are
by L/C at
sight or T/T.
Exports are
against T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject employs
55 staff.
LOCATION
DETAILS
The premise is owned for administrative office and
factory at the
heading address. Premise
is located in
provincial.
Bangkok Branch : 20/20
Yannawa Rd., Chongnonsi,
Yannawa, Bangkok 10120.
Tel. :
[66] 2683-3882, Fax. :
[66] 2683-3883.
COMMENT
The subject’s operating
performance in 2014
was impressive with
an increasing in
both sales revenue
and net profit
comparing to the
same period of
the previous year.
The demand of the products
are in relation
to the expansion
of paper industry
which has seen
improvement during the past few years.
FINANCIAL
INFORMATION
The capital was
registered at Bht. 40,000,000 divided
into 400,000 shares
of Bht. 100
each.
On November 19,
2012, the capital
was decreased to Bht.
37,456,250 divided into
3,745,625 shares of
Bht. 10 each
with fully paid.
On December 25,
2012, the capital
was increased to
Bht. 40,000,000 divided
into 4,000,000 shares
of Bht. 10 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
[as at April
30, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ivax Paper
Chemicals Ltd. Nationality: Indian Address :
6-3-248 Road No. 1, Banjara Hills, Hyderabad, India |
1,454,375 |
36.36 |
|
Mr.
Sharad Kumar Nawalgaria Nationality: Indian Address :
6-3-248 Road No. 1, Banjara Hills, Hyderabad, India |
1,402,500 |
35.06 |
|
Mr.
Kirati Kumar Nawalgaria Nationality: Indian Address :
6-3-248 Road No. 1, Banjara Hills, Hyderabad, India |
1,143,125 |
28.58 |
Total Shareholders
: 3
Share
Structure
[as at
April 30, 2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign - Indian |
3 |
4,000,000 |
100.00 |
|
Total |
3 |
4,000,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Ms. Aruchida Lohsen No.
10192
BALANCE
SHEET [BAHT]
The latest financial
figures published for
December 31, 2014,
2013 & 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalent |
12,599,757.14 |
8,627,178.01 |
19,701,686.00 |
|
Trade Accounts
& Other Receivable |
37,942,148.65 |
26,508,168.86 |
10,332,846.05 |
|
Inventories |
23,971,515.72 |
22,858,175.90 |
21,032,821.04 |
|
Prepaid Expenses |
- |
- |
32,228.40 |
|
Other Current
Assets |
315,909.48 |
584,094.17 |
1,374,052.92 |
|
|
|
|
|
|
Total Current
Assets |
74,829,330.99 |
58,577,616.94 |
52,473,634.41 |
|
|
|
|
|
|
Fixed Assets |
13,876,966.53 |
17,599,893.98 |
18,596,751.48 |
|
Total Assets |
88,706,297.52 |
76,177,510.92 |
71,070,385.89 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Trade Accounts
& Other Payable |
12,941,314.64 |
8,866,219.26 |
7,162,938.76 |
|
Current Portion
of Hire-purchase Payable |
- |
- |
323,163.00 |
|
Other Current
Liabilities |
256,536.10 |
299,898.50 |
86,442.20 |
|
|
|
|
|
|
Total Current
Liabilities |
13,197,850.74 |
9,166,117.76 |
7,572,543.96 |
|
|
|
|
|
|
Hire-purchase
Payable, net of Current Portion |
- |
- |
1,063,909.56 |
|
Total Liabilities
|
13,197,850.74 |
9,166,117.76 |
8,636,453.52 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
Share
capital : Baht 10 par
value authorized,
issued and fully
paid
share capital 4,000,000
shares |
40,000,000.00 |
40,000,000.00 |
40,000,000.00 |
|
|
|
|
|
|
Capital Paid |
40,000,000.00 |
40,000,000.00 |
40,000,000.00 |
|
Retained Earning- Unappropriated |
35,508,446.78 |
27,011,393.16 |
22,433,932.37 |
|
Total Shareholders' Equity |
75,508,446.78 |
67,011,393.16 |
62,433,932.37 |
|
Total Liabilities
& Shareholders' Equity |
88,706,297.52 |
76,177,510.92 |
71,070,385.89 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales |
177,559,972.89 |
135,250,273.38 |
113,722,376.97 |
|
Other Income |
1,053,690.90 |
774,279.42 |
90,417.95 |
|
Total Revenues |
178,613,663.79 |
136,024,552.08 |
113,812,794.92 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of
Goods Sold |
138,690,394.18 |
102,284,159.75 |
69,732,828.99 |
|
Selling Expenses |
7,699,579.40 |
11,597,459.17 |
19,549,424.53 |
|
Administrative Expenses |
23,726,636.59 |
17,554,645.13 |
19,070,441.79 |
|
Total Expenses
|
170,116,610.17 |
131,436,264.05 |
108,352,695.31 |
|
|
|
|
|
|
Profit/[Loss]
before Financial Cost |
8,497,053.62 |
4,588,288.75 |
5,460,099.61 |
|
Financial Cost |
- |
[10,827.96] |
[10,844.43] |
|
|
|
|
|
|
Net Profit / [Loss] |
8,497,053.62 |
4,577,460.79 |
5,449,255.18 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
5.67 |
6.39 |
6.93 |
|
QUICK RATIO |
TIMES |
3.83 |
3.83 |
3.97 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS
TURNOVER |
TIMES |
12.80 |
7.68 |
6.12 |
|
TOTAL ASSETS
TURNOVER |
TIMES |
2.00 |
1.78 |
1.60 |
|
INVENTORY
CONVERSION PERIOD |
DAYS |
63.09 |
81.57 |
110.09 |
|
INVENTORY
TURNOVER |
TIMES |
5.79 |
4.47 |
3.32 |
|
RECEIVABLES
CONVERSION PERIOD |
DAYS |
78.00 |
71.54 |
33.16 |
|
RECEIVABLES
TURNOVER |
TIMES |
4.68 |
5.10 |
11.01 |
|
PAYABLES
CONVERSION PERIOD |
DAYS |
34.06 |
31.64 |
37.49 |
|
CASH CONVERSION
CYCLE |
DAYS |
107.02 |
121.47 |
105.76 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS
SOLD |
% |
78.11 |
75.63 |
61.32 |
|
SELLING &
ADMINISTRATION |
% |
17.70 |
21.55 |
33.96 |
|
INTEREST |
% |
- |
0.01 |
0.01 |
|
GROSS PROFIT
MARGIN |
% |
22.48 |
24.95 |
38.76 |
|
NET PROFIT MARGIN
BEFORE EX. ITEM |
% |
4.79 |
3.39 |
4.80 |
|
NET PROFIT MARGIN |
% |
4.79 |
3.38 |
4.79 |
|
RETURN ON EQUITY |
% |
11.25 |
6.83 |
8.73 |
|
RETURN ON ASSET |
% |
9.58 |
6.01 |
7.67 |
|
EARNING PER SHARE |
BAHT |
2.12 |
1.14 |
1.36 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.15 |
0.12 |
0.12 |
|
DEBT TO EQUITY
RATIO |
TIMES |
0.17 |
0.14 |
0.14 |
|
TIME INTEREST
EARNED |
TIMES |
- |
423.74 |
503.49 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
31.28 |
18.93 |
|
|
OPERATING PROFIT |
% |
85.19 |
(15.97) |
|
|
NET PROFIT |
% |
85.63 |
(16.00) |
|
|
FIXED ASSETS |
% |
(21.15) |
(5.36) |
|
|
TOTAL ASSETS |
% |
16.45 |
7.19 |
|
ANNUAL
GROWTH: IMPRESSIVE
An annual sales
growth is 31.28%. Turnover has increased from THB
PROFITABILITY : SATISFACTORY
PROFITABILITY RATIO
|
Gross Profit
Margin |
22.48 |
Deteriorated |
Industrial
Average |
58.98 |
|
Net Profit Margin |
4.79 |
Satisfactory |
Industrial
Average |
6.12 |
|
Return on Assets |
9.58 |
Impressive |
Industrial
Average |
7.53 |
|
Return on Equity |
11.25 |
Satisfactory |
Industrial
Average |
12.08 |
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 22.48%. 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 4.79%. 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. Return on Assets ratio
is 9.58%, 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 11.25%.
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 |
5.67 |
Impressive |
Industrial
Average |
2.23 |
|
Quick Ratio |
3.83 |
|
|
|
|
Cash Conversion
Cycle |
107.02 |
|
|
|
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 5.67 times in 2014,
decreased from 6.39 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 3.83 times in 2014, same figure
as 3.83 times in 2013, 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 108 days.
Trend of the average competitors in the same
industry for last 5 years
Current Ratio Uptrend
LEVERAGE : EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.15 |
Impressive |
Industrial
Average |
0.34 |
|
Debt to Equity
Ratio |
0.17 |
Impressive |
Industrial
Average |
0.51 |
|
Times Interest
Earned |
- |
|
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.
Debt Ratio shows
the proportion of a company's assets which are financed through debt. The
company's figure is 0.15 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 Downtrend
Times Interest
Earned Stable
ACTIVITY : EXCELLENT
ACTIVITY RATIO
|
Fixed Assets
Turnover |
12.80 |
Impressive |
Industrial
Average |
- |
|
Total Assets
Turnover |
2.00 |
Impressive |
Industrial
Average |
1.23 |
|
Inventory
Conversion Period |
63.09 |
|
|
|
|
Inventory
Turnover |
5.79 |
Impressive |
Industrial
Average |
3.47 |
|
Receivables
Conversion Period |
78.00 |
|
|
|
|
Receivables
Turnover |
4.68 |
Impressive |
Industrial
Average |
4.48 |
|
Payables
Conversion Period |
34.06 |
|
|
|
The company's
Account Receivable Ratio is calculated as 4.68 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
decreased from 82 days at the end of 2013 to 63 days at the end of 2014. This
represents a positive trend. And Inventory turnover has increased from 4.47
times in year 2013 to 5.79 times in year 2014.
The company's Total
Asset Turnover is calculated as 2 times and 1.78 times in 2014 and 2013
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 Downtrend
Receivables
Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.94 |
|
|
1 |
Rs.98.27 |
|
Euro |
1 |
Rs.72.37 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
NIT |
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.