MIRA INFORM REPORT
|
Report No. : |
348629 |
|
Report Date : |
07.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
ADITYA BIRLA CHEMICALS [THAILAND] LTD. |
|
|
|
|
Formerly Known As : |
THAI ORGANIC CHEMICALS
CO., LTD |
|
|
|
|
Registered Office : |
16th Floor, Mahathun
Plaza Building,
888/160-161 Ploenchit Road,
Lumpini, Pathumwan, Bangkok
10330 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
26.12.1994 |
|
|
|
|
Com. Reg. No.: |
0105537150963 [Former: 3283/2537] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer wide range
of industrial chemicals,
such as Caustic
Soda 50%, Chlorine 99.9%,
Epichlorohydrin 99.9%, Ally
Chloride 99%, Hydrochloric acid
35%, Sodium Hypochlorite 10-20% and Epoxy Resin, Liquid Epoxy Resin, Solid
Epoxy resin, Cut Epoxy resin, Cycloliphatic Epoxy
resin, which are
raw materials of
consumer productions industries.
|
|
|
|
|
No. of Employee : |
450 |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Excellent |
|
Payment Behaviour : |
Regular |
|
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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Thailand |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company
name and address
ADITYA BIRLA CHEMICALS [THAILAND] LTD.
[FORMER : THAI ORGANIC CHEMICALS
CO., LTD.]
SUMMARY
BUSINESS ADDRESS : 16th
FLOOR, MAHATHUN PLAZA
BUILDING,
888/160-161 PLOENCHIT
ROAD,
LUMPINI,
PATHUMWAN,
BANGKOK
10330, THAILAND
TELEPHONE : [66] 2253-6745-54
FAX : [66] 2253-5030
E-MAIL ADDRESS : epoxymktg@adityabirla.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1994
REGISTRATION NO. : 0105537150963 [Former:
3283/2537]
TAX ID NO. : 3011529300
CAPITAL REGISTERED : BHT.
1,700,000,000
CAPITAL PAID-UP : BHT.
1,700,000,000
SHAREHOLDER’S PROPORTION : THAI
: 99.24%
FOREIGN :
0.76%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
LALITKUMAR SHANTARAM NAIK,
INDIAN
PRESIDENT
NO. OF STAFF : 450
LINES OF BUSINESS : INDUSTRIAL CHEMICALS
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 December 26,
1994 as a
private limited company under
the name style “Thai
Organic Chemicals Co.,
Ltd.” by a
joint investment between
Thai Rayon Public
Co., Ltd. and Thai
Carbon Black Public
Co., Ltd., which are
members of Aditya Birla Group,
in order to
produce wide range
of industrial chemicals.
The plant is
situated in Eastern Industrial
Estate at Maptaphut,
Rayong Province.
At the beginning
of 2005, the
epoxy resin production
has been transferred
from Thai Epoxy
and Allied Products
Co., Ltd. to the
subject.
On December 30, 2005, subject’s
name was changed
to ADITYA BIRLA CHEMICALS
[THAILAND] LTD. It
currently employs approximately
450 staff.
The subject’s registered
address is 16th
Flr., Mahathun Plaza
Bldg., 888/160-161 Ploenchit Rd.,
Lumpini, Pathumwan, Bangkok
10330, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kumar Mangalam
Birla |
: Chairman |
Indian |
47 |
|
Mrs. Rajcharee Birla |
|
Indian |
70 |
|
Mr. Khrisna Kischor Maheshwari |
|
Indian |
68 |
|
Mr. Hari Krishna
Agarwal |
|
Indian |
63 |
|
Mr. Lalitkumar Shantaram Naik |
|
Indian |
61 |
|
Mr. Sanjeev Soon |
|
Indian |
53 |
AUTHORIZED
PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Lalitkumar Shantaram Naik
is the President.
He is Indian
nationality with the
age of 61 years
old.
Mr. M. P. Pathak is
the Vice President
of Chlor-Alkali Division.
He is Indian
nationality.
Mr. P. K. Dubey is
the Vice President
of Epoxy Division.
He is Indian
nationality.
Mr. Ajay Mahajan
is the Vice
President of Sulphite
& Phosphates Division.
He is Indian
nationality.
Mr. Pankaj Verma is
the Business Development
Manager.
He is Indian
nationality.
BUSINESS
OPERATIONS
The subject’s activity
is a manufacturer
wide range of
industrial chemicals, such
as Caustic Soda 50%,
Chlorine 99.9%, Epichlorohydrin 99.9%,
Ally Chloride 99%,
Hydrochloric acid 35%, Sodium Hypochlorite 10-20% and Epoxy
Resin, Liquid Epoxy Resin, Solid
Epoxy resin, Cut Epoxy resin, Cycloliphatic Epoxy
resin, which are
raw materials of
consumer productions industries.
The products are
as follows:
Chlor Alkali products
- Caustic soda flakes
- Caustic soda lye
- Chlorine
- Hydrogen
- Hydrochloric acid
- Sodium hypochlorite
- Caustic Soda Lye
Phosphate Products “Corino”,
“Gust” and “Pearl”
Food grade phosphate
- Blended phosphate
- Dipotassium phosphates
- Monosodium phosphate
- Sodium acid pyrophosphate
- Sodium hexametaphosphate
- Sodium tripolyphosphate
-Tetrasodium pyrophosphate
- Trisodium phosphate
Technical grade Phosphate
- Chlorinated trisodium
phosphate
- Disodium
phosphate
- Monosodium
phosphate
- Sodium
acid pyrophosphate
- Sodium
hexametaphosphate
- Sodium
tripolyphosphate
- Tetrasodium pyrophosphate
- Trisodium
phosphate
Sulphites Products
- Sodium sulphite
- Sodium metabisulphite
- Sodium bisulphate
Epoxy Resin Products
“Epotec”
- Cycloaliphatic epoxy resins
- Epoxy phenol novolac
- Epoxy systems
- Liquid epoxy resins
- Reactive diluents
- Solid epoxy resins
- Solvent-cut epoxy resins
- Waterborne epoxy resins
- Curing agents
PURCHASE
Most of raw
materials are purchased
from local suppliers,
and the remaining
is imported from United
States of America,
Japan, France, Singapore,
Switzerland, India, Republic
of China, Taiwan
and Germany.
MAJOR
SUPPLIERS
Messo AG. : Switzerland
BASF Thai Ltd. : Thailand
IRPC Public Co.,
Ltd. :
Thailand
Mitsubishi Chemical [Thailand]
Co., Ltd. : Thailand
SALES
[LOCAL]
80% of the products
is sold locally to wholesalers
and manufacturers in
various industries such
as food, pharmaceutical, water
treatment, pulp &
paper, leather, textile
and etc.
EXPORT
20% of the
products is also
exported to more
than 70 countries worldwide,
e.g.
United States of
America, Philippines, Taiwan,
Republic of China,
India, Australia, Singapore, Korea,
Indonesia, Malaysia, Vietnam,
Pakistan, United Arab
Emirates, Germany, South
Africa and Europe.
MAJOR
CUSTOMERS
|
Name |
Country |
|
Unilever Thai Holding
Co., Ltd. |
Thailand |
|
Colgate - Palmolives [Thailand]
Ltd. |
Thailand |
|
Kao Industrial [Thailand]
Ltd. |
Thailand |
|
I C I Asiatic Chemical
Co., Ltd. |
Thailand |
|
Thai Rayon Public
Co., Ltd. |
Thailand |
RELATED
COMPANIES
Birla Group
Aditya Birla Nuvo
Ltd.
Business Type :
Manufacturer and distributor
of industrial chemical
Bihar Caustic and
Chemicals Ltd.
Business Type : Manufacturer and
distributor of industrial
chemical
Grasim Industries Ltd.
Business Type :
Manufacturer of industrial
chemical
Tanfac Industries Ltd.
Business Type :
Manufacturer of industrial
chemical
Thai Peroxide Ltd.
Business Type :
Manufacturer of industrial
chemical
Thai Polyphosphate and
Chemicals Co., Ltd.
Business Type :
Manufacturer of industrial
chemical
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
The Company was sued for damages by one customer amounting to 26 million baht.
Although the outcome of the case can not
be anticipated at this time, the Company's management believes that the outcome
of the case would not have a material impact on the financial statements of the
Company as a whole.
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.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
The
Siam Commercial Bank
Public Co., Ltd.
[Poochao
Branch : Poochaosamingprai Rd., Samrong,
Phrapradaeng, Samutprakarn]
[Maptaphud
Branch : Pakornsongkrohraj Rd.,
Huaypong, Muang, Rayong]
Bangkok
Bank Public Co.,
Ltd.
[Head
Office : 333 Silom
Rd., Silom, Bangrak,
Bangkok 10500]
Kasikornbank Public Co.,
Ltd.
[Head
Office : 1 Kasikorn Lane, Rajburana
Rd., Rajburana, Bangkok 10140]
EMPLOYMENT
The subject employs
approximately 450 staff.
[office staff and
factory workers]
LOCATION
DETAILS
The premise is
rented for administrative office at the heading
address. Premise is
located in an
industrial area.
Factories:
Chlor-Alkalis Factory
3 Soi G2,
Prakornsongkroh Rd., T.
Huaypong A. Muang,
Rayong 21150.
Tel: [66] 38
687-356.
Epoxy Resin Factory
2 I-5 Rd., Mabtaphut
Industrial Estate, T. Mabtaphut,
A. Muang, Rayong 21150.
Tel: [66] 38
685-233-4, Fax: [66] 38 683-982.
Phosphate Factory
77 Moo 6,
Poochaosamingprai Rd., T. Samrongtai, A. Phrapradaeng, Samutprakarn.
Sulphites Factory
82 Moo 5,
Sudbantad Rd., T. Taldiew,
A. Kaengkoi, Saraburi.
Bangkok Branch
16th Floor, Mahathun
Plaza, 888/167 Ploenchit
Rd., Lumpini, Pathumwan,
Bangkok 10330.
COMMENT
Aditya
Birla Chemicals is a leading
manufacture of industrial chemicals.
It is a leading manufacturer of
bulk and specialty chemicals
and viscose filament yarn. The business is spread across multiple manufacturing
locations in three countries
- India, Thailand and China. The company is
engaged in the production of five major chemical groups, namely,
chlor-alkali products, epichlorohydrin, epoxy resins, phosphates and sulphites. The
products have been
served in a large
number of industries such
as food, food processing, personal consumer
products, coating, civil
engineering, wind energy,
composites, electrical, pulp and
paper, detergents, water treatment, metal
treatment and more.
Since commencement subject
has excessively grown
in line with strong demand of the products
from both domestic and overseas
markets. The company’s business
has built a strong global
presence with products
that are recognized the world
over for their high quality.
The subject reported improved performance for the first half of
2015 amidst challenging market
conditions.
FINANCIAL
INFORMATION
The capital was
registered at Bht.
10,000 divided into
10 shares of
Bht. 1,000 each.
The capital were
increased and decreased
later as followings:
Increased were :
Bht. 370 million
on March 20,
1995
Bht.
650 million on
February 25, 1997
Bht. 2,240 million
on September 14,
2004
Decreased was : Bht.
1,040 million on
October 11, 2005
On October 26,
2005, the registered
capital was increased
to Bht. 1,700 million,
divided into 170,000,000
shares of Bht.
10 each with
fully paid.
MAIN
SHAREHOLDERS
[as at April
27, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Thai Polyphosphate and
Chemicals Co., Ltd. Nationality: Thai Address : 77
Moo 6, Poochaosamingprai Rd.,
Samrong, Phrapradaeng, Samutprakarn |
64,140,251 |
37.73 |
|
Thai Carbon Black
Public Co., Ltd. Nationality: Thai Address : 888/160-161
Ploenchit Rd., Lumpini,
Pathumwan, Bangkok |
50,982,000 |
29.99 |
|
Thai Rayon Public
Co., Ltd. Nationality: Thai Address : 888/160-161
Ploenchit Rd., Lumpini,
Pathumwan, Bangkok 10330 |
50,960,605 |
29.98 |
|
Thai Industrial Management
Co., Ltd. Nationality: Thai Address : 77
Moo 6, Poochaosamingprai Rd.,
Samrong, Phrapradaeng, Samutprakarn |
2,618,000 |
1.54 |
|
Asseau Company Limited Nationality: Chinese Address : Level
28, Three Pacific
Place, 1 Queen’s
Road East, Hong Kong |
1,298,244 |
0.76 |
|
Others |
900 |
- |
Total Shareholders : 8
Share Structure
[as at April
27, 2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
168,701,556 |
99.24 |
|
Foreign |
3 |
1,298,444 |
0.76 |
|
Total |
8 |
170,000,000 |
100.00 |
NAME
OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT
NO.
Mr. Narong Pantawong No. 3315
BALANCE
SHEET [BAHT]
The latest
financial figures published
for December 31, 2014,
2013 & 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 [Adjusted] |
|
|
|
|
|
|
Cash in Hand
& at Bank |
78,068,148 |
43,678,166 |
27,016,928 |
|
Short-term Investment |
1,407,593,310 |
305,000,000 |
624,000,000 |
|
Trade Accounts &
Other Receivable |
2,117,740,441 |
2,143,202,744 |
1,932,912,131 |
|
Short-term Lending to Related Company |
- |
138,000,000 |
48,500,000 |
|
Current Portion of
Long-term Loan to Related Company |
39,750,700 |
|
|
|
Inventories |
2,096,629,763 |
1,565,118,573 |
1,590,941,290 |
|
Gain from Derivatives |
21,801,444 |
- |
- |
|
Other Current Assets
Prepayment for
Goods |
88,769,743 |
168,842,203 |
162,318,653 |
|
Refundable Input
Tax |
151,112,592 |
169,632,844 |
146,594,473 |
|
Others |
85,985,161 |
81,049,455 |
92,553,652 |
|
|
|
|
|
|
Total Current Assets
|
6,087,451,302 |
4,614,523,985 |
4,624,837,127 |
|
Investment in Subsidiary |
952,551,531 |
939,679,074 |
344,609,074 |
|
Long-term Loan to Related Company |
655,886,550 |
782,617,500 |
- |
|
Real Estate for
Investment |
93,217,148 |
93,217,148 |
69,625,350 |
|
Fixed Assets |
3,900,971,082 |
3,976,355,588 |
4,092,860,865 |
|
Deferred Income Tax Assets |
69,298,774 |
84,884,426 |
66,661,640 |
|
Intangible Assets |
11,431,960 |
12,807,328 |
9,826,184 |
|
Prepayment for Goods |
5,024,490 |
37,422,131 |
4,860,930 |
|
Other Assets |
15,161,705 |
13,238,488 |
9,322,960 |
|
Total Assets |
11,790,994,542 |
10,554,745,668 |
9,222,604,130 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 [Adjusted] |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
1,141,438,920 |
366,030,748 |
461,500,000 |
|
Trade Accounts &
Other Payable |
1,240,407,718 |
1,312,100,788 |
886,496,399 |
|
Short-term Loan from Related Company |
42,520,000 |
- |
94,400,000 |
|
Accrued Income Tax |
42,370,531 |
68,691,686 |
- |
|
Provision for Loss on Derivatives |
- |
95,485,565 |
- |
|
Other Current Liabilities |
68,351,886 |
30,109,905 |
31,310,114 |
|
|
|
|
|
|
Total Current Liabilities |
2,535,089,055 |
1,872,418,692 |
1,473,706,513 |
|
Long-term Loan from Financial Institution |
382,680,000 |
425,200,000 |
- |
|
Reserve for Long-term
Employee Benefits |
135,189,523 |
120,219,709 |
112,812,729 |
|
Reserve for Assets
Demolishment |
34,610,174 |
33,602,111 |
32,623,409 |
|
Total Liabilities |
3,087,568,752 |
2,451,440,512 |
1,619,142,651 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 170,000,000 shares |
1,700,000,000 |
1,700,000,000 |
1,700,000,000 |
|
|
|
|
|
|
Capital Paid |
1,700,000,000 |
1,700,000,000 |
1,700,000,000 |
|
Retained Earning : Appropriated for Statutory
Reserve |
35,789,473 |
31,315,789 |
26,842,105 |
|
Unappropriated |
6,965,703,166 |
6,371,989,367 |
5,876,619,374 |
|
Other Components of
Shareholders’ Equity |
1,933,151 |
- |
- |
|
Total Shareholders' Equity |
8,703,425,790 |
8,103,305,156 |
7,603,461,479 |
|
Total Liabilities &
Shareholders' Equity |
11,790,994,542 |
10,554,745,668 |
9,222,604,130 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 [Adjusted] |
|
|
|
|
|
|
Sales |
13,433,783,116 |
11,954,596,632 |
11,771,112,022 |
|
Gain on Exchange Rate |
12,662,792 |
23,635,889 |
77,668,627 |
|
Others |
255,261,445 |
89,535,124 |
85,481,147 |
|
Total Revenues |
13,701,707,353 |
12,067,767,645 |
11,934,261,796 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
11,215,100,948 |
9,945,270,427 |
9,998,003,050 |
|
Selling Expenses |
1,218,540,465 |
1,118,277,182 |
1,063,367,375 |
|
Administrative Expenses |
441,053,944 |
335,295,914 |
354,896,802 |
|
Total Expenses |
12,874,695,357 |
11,398,843,523 |
11,416,267,227 |
|
|
|
|
|
|
Profit before Financial
Expenses & Income Tax |
827,011,996 |
668,924,122 |
517,994,569 |
|
Financial Expenses |
[29,425,844] |
[14,832,512] |
[11,676,335] |
|
|
|
|
|
|
Profit before Income Tax |
797,586,152 |
654,091,610 |
506,318,234 |
|
Income Tax |
[109,545,912] |
[69,247,933] |
[40,071,082] |
|
|
|
|
|
|
Net Profit / [Loss] |
688,040,240 |
584,843,677 |
466,247,152 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.40 |
2.46 |
3.14 |
|
QUICK RATIO |
TIMES |
1.44 |
1.40 |
1.79 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.44 |
3.01 |
2.88 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.14 |
1.13 |
1.28 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
68.24 |
57.44 |
58.08 |
|
INVENTORY TURNOVER |
TIMES |
5.35 |
6.35 |
6.28 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
57.54 |
65.44 |
59.94 |
|
RECEIVABLES TURNOVER |
TIMES |
6.34 |
5.58 |
6.09 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
40.37 |
48.16 |
32.36 |
|
CASH CONVERSION CYCLE |
DAYS |
85.41 |
74.72 |
85.65 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
83.48 |
83.19 |
84.94 |
|
SELLING & ADMINISTRATION |
% |
12.35 |
12.16 |
12.05 |
|
INTEREST |
% |
0.22 |
0.12 |
0.10 |
|
GROSS PROFIT MARGIN |
% |
18.51 |
17.75 |
16.45 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
6.16 |
5.60 |
4.40 |
|
NET PROFIT MARGIN |
% |
5.12 |
4.89 |
3.96 |
|
RETURN ON EQUITY |
% |
7.91 |
7.22 |
6.13 |
|
RETURN ON ASSET |
% |
5.84 |
5.54 |
5.06 |
|
EARNING PER SHARE |
BAHT |
4.05 |
3.44 |
2.74 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.26 |
0.23 |
0.18 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.35 |
0.30 |
0.21 |
|
TIME INTEREST EARNED |
TIMES |
28.10 |
45.10 |
44.36 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
12.37 |
1.56 |
|
|
OPERATING PROFIT |
% |
23.63 |
29.14 |
|
|
NET PROFIT |
% |
17.65 |
25.44 |
|
|
FIXED ASSETS |
% |
(1.90) |
(2.85) |
|
|
TOTAL ASSETS |
% |
11.71 |
14.44 |
|
ANNUAL GROWTH : IMPRESSIVE
An annual sales growth is 12.37%. Turnover has increased from THB
11,954,596,632.00 in 2013 to THB 13,433,783,116.00 in 2014. While net profit
has increased from THB
PROFITABILITY : EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
18.51 |
Impressive |
Industrial Average |
17.91 |
|
Net Profit Margin |
5.12 |
Impressive |
Industrial Average |
2.03 |
|
Return on Assets |
5.84 |
Impressive |
Industrial Average |
2.74 |
|
Return on Equity |
7.91 |
Impressive |
Industrial Average |
4.35 |
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 18.51%. 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 5.12%, 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
5.84%, 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. Return on Equity ratio is 7.91%, 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 Downtrend
LIQUIDITY : SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
2.40 |
Impressive |
Industrial Average |
1.74 |
|
Quick Ratio |
1.44 |
|
|
|
|
Cash Conversion Cycle |
85.41 |
|
|
|
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 2.4 times in 2014, decreased
from 2.46 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 1.44 times in 2014,
increased from 1.4 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 86 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.26 |
Impressive |
Industrial Average |
0.35 |
|
Debt to Equity Ratio |
0.35 |
Impressive |
Industrial Average |
0.54 |
|
Times Interest Earned |
28.10 |
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 28.11 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 0.26 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 : IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.44 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.14 |
Satisfactory |
Industrial Average |
1.35 |
|
Inventory Conversion Period |
68.24 |
|
|
|
|
Inventory Turnover |
5.35 |
Acceptable |
Industrial Average |
7.93 |
|
Receivables Conversion Period |
57.54 |
|
|
|
|
Receivables Turnover |
6.34 |
Impressive |
Industrial Average |
5.80 |
|
Payables Conversion Period |
40.37 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.34 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 57 days at the end of 2013 to 68
days at the end of 2014. This represents a negative trend. And Inventory
turnover has decreased from 6.35 times in year 2013 to 5.35 times in year 2014.
The company's Total Asset Turnover is calculated as 1.14 times and 1.13
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 Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.79 |
|
|
1 |
Rs.99.95 |
|
Euro |
1 |
Rs.71.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
HEE |
|
|
|
|
Report Prepared
by : |
SDA |
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.