MIRA INFORM REPORT
|
Report No. : |
348455 |
|
Report Date : |
10.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
CPPC PUBLIC COMPANY LIMITED |
|
|
|
|
Formerly Known As : |
CHAROEN POKPHAND PETROCHEMICAL CO., LTD. |
|
|
|
|
Registered Office : |
18th Floor, C.P. Tower, 313 Silom Road, Silom, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
28.09.1988 |
|
|
|
|
Com. Reg. No.: |
0107547000753 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer,
Exporter and Distributor of Rigid PVC Film and Related Products. |
|
|
|
|
No. of Employees : |
420 |
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 : |
Slow but correct |
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|
|
|
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 |
THAILAND - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise
economy, and generally pro-investment policies Thailand has historically had a
strong economy due in part to competitive industrial and agriculture exports -
mostly electronics, agricultural commodities, automobiles and parts, and
processed foods. The economy experienced slow growth and declining exports in
2014, in part due to domestic political turmoil and sluggish global demand.
With full employment, Thailand attracts an estimated 2-4 million migrant
workers from neighboring countries, and faces labor shortages. Following the
May 2014 coup d'etat, tourism decreased 6-7% but is beginning to recover. The
household debt to GDP ratio is over 80%. 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 baht has
remained stable.
|
Source
: CIA |
Company
Name and Address
CPPC PUBLIC COMPANY LIMITED
[FORMER: CHAROEN POKPHAND
PETROCHEMICAL CO., LTD.]
SUMMARY
BUSINESS ADDRESS : 18th FLOOR,
C.P. TOWER,
313 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500, THAILAND
TELEPHONE NO. : [66] 2625-8000
TELEFAX : [66] 2638-2824
E-MAIL ADDRESS : pera@cppcnet.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHEDD : 1988
REGISTRATION NO. : 0107547000753 [Former
: 0107574700750]
TAX ID NO. : 3101568868
CAPITAL REGISTERED : BHT. 1,950,000,000
CAPITAL PAID-UP : BHT. 1,480,000,000
SHAREHOLDER’S PROPORTION : THAI :
98.98%
FOREIGN :
1.02%
FISCAL YEAR CLOSING
DATE : DECEMBER 31
LEGAL STATUS : PUBLIC
LIMITED COMPANY
EXECUTIVE :
MR. PRASERT POONGKUMARN,
THAI
PRESIDENT &
CHIEF EXECUTIVE OFFICER
NO. OF STAFF : 420
LINES OF BUSINESS : RIGID PVC
FILM AND RELATED
PRODUCTS
MANUFACTURER,
EXPORTER AND
DISTRIBUTOR
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 September
28, 1988 as
a private limited
company under the registered
name “Charoen Pokphand Petrochemical
Co., Ltd.” by Thai
groups, in order
to manufacture various
kinds of rigid
PVC film, PVC
card and paper
core products used
in consumers and
other industries.
The subject has
been granted a
promotional privilege by
the Board of
Investment [BOI] and
also achieved ISO 9002
and ISO 14001
certification from SGS
Yarsley on June
23, 1998 and
in November 2000
respectively. It is
one company under
the C.P. Petrochemical
Business Group.
On August 18,
2004, the subject
registered for conversion
of its status
to a public
limited company and
its name was
changed to CPPC
PUBLIC COMPANY LIMITED.
It currently employs
approximately 420 staff.
The subject’s registered
address was initially
at 12th Floor
C.P. Tower, 333
Silom Rd., Silom, Bangrak,
Bangkok 10500.
In 2009, the
subject’s registered address
was relocated to 18th Floor,
C.P. Tower, 333
Silom Rd., Silom,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Prasert Poongkumarn : Chairman |
|
Thai |
79 |
|
Mr. Meth Chiaravanont |
|
Thai |
57 |
|
Mr. Manoo Chiaravanont |
|
Thai |
61 |
|
Mr. Nophadol Chiaravanont |
|
Thai |
54 |
|
Mr. Supachai Chiaravanont |
|
Thai |
48 |
|
Mr. Kajorn Chiaravanont |
|
Thai |
48 |
|
Mr. Chatchaval
Chiaravanont |
|
Thai |
53 |
|
Mr. Narong Chiaravanont |
|
Thai |
50 |
|
Mr. Amrung Supsitwong |
|
Thai |
62 |
|
Mr. Chaipong Chainapaporn |
|
Thai |
62 |
AUTHORIZED
PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with company’s
affixed.
MANAGEMENT
Mr. Prasert Poongkumarn is
the Chairman of the Board, President &
Chief Executive Officer.
He is Thai
nationality with the
age of 79 years old.
Mr. Amporn Pornvaraporn is
the General Manager.
He is Thai
nationality.
Mr. Poramin Pongkrasin is the
Factory Manager.
He is Thai
nationality.
Mr. Pera Pattiyathanee is
the Sales & Marketing Manager.
He is Thai
nationality.
BUSINESS
OPERATIONS
The
subject’s core business
is engaged in
manufacturing rigid PVC
film and PVC
sheets. The products
are used in various
industries e.g. Christmas trees, vacuum-forming packaging,
stationery, lamps, credit cards,
plastic ware for food
containers, decorative materials
and industrial applications
such as cooling
tower structures and
waste water treatment
facilities, as well
as manufacturing of PVC cards
and paper cores.
MAJOR BRAND
"CPPC"
PRDUCTION CAPACITY
PVC films & sheets :
24,000 tons per
annum
Paper cores : 700
tons per annum
PURCHASE
30% of raw
materials such as
plastic resin, paper
pulp and chemicals
are imported from Germany,
Taiwan, Belgium, Singapore,
Republic of China
and Japan. The
majority of 70%
is purchased from
local suppliers.
MAJOR SUPPLIERS
|
Company Name |
Country |
Products |
|
Star Color Co., Ltd. |
Thailand |
: Chemical |
|
Vinythai Public Company Limited |
Thailand |
: Chemical |
|
Solvay S.A. |
Belgium |
: Plastic resin &
chemical |
|
Dow Chemical [Thailand]
Ltd. |
Thailand |
: Chemical |
|
IRPC Public Company
Limited |
Thailand |
: Plastic resin |
SALES [LOCAL]
80% of its
products is sold
locally to manufacturers, wholesalers
and end-users.
EXPORT [COUNTRIES]
20% of its
products is exported
to United States
of America, Hong
Kong, Republic of
China, Malaysia, Singapore,
Sweden, France, Spain,
Switzerland, Germany, United
Kingdom, Indonesia, Australia,
Korea, Philippines, India,
Taiwan, South America &
etc.
SUBSIDIARIES
AND AFFILIATED COMPANIES
CA Petrochemical Co.,
Ld.
Business Type : Manufacture
of PVC Pipe
Investment : 100%
of investment
C.P. Poly-Industry Co.,
Ltd.
Business Type : Manufacturer
and distributor of
jute bag and
plastic textiles
Investment : 100%
of investment
CNC International Co.,
Ltd.
Business Type : Manufacturer
and distributor of
synthetic fabric
Investment : 100%
of investment
CP Packaging Industry
Co., Ltd.
Business Type : Manufacturer
and distributor of
plastic container for
food industry
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
the past two
years.
CREDIT
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Sales are by
cash or on
the credits term of
30-60 days.
Imports are by
L/C at sight
or on the
credit term of
120 days or
T/T on the
credit term of
30 days.
Exports are against
L/C at sight
or on the
credit term of 120
days, D/P and
T/T on the credit
term of 30
days.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok 10500]
[Trokchan Branch : 1564/8 Chan
Rd., Tungwatdon, Sathorn,
Bangkok 10120]
TMB Bank Public
Co., Ltd.
[Head Office
: 393 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 420 staff. [office, sales
staff and factory workers]
LOCATION
DETAILS
The premise is
rented for administrative office
at the heading
address. It is
located in a
prime commercial area.
Factory is located
at 111/1 Moo
2, T. Nikompatana, A.
Nikompatana, Rayong 21180.
Land Area :
4,800,000 square meters
Tel: [66] 38
897-103-8, 38 636-646
Fax: [66] 38
636-037, 38 897-113
COMMENT
The subject was formed
in 1988 as a
manufacturer and distributor
of Rigid PVC Film. Its
products have been
used in various
industries. Subject’s
performance was related
to the conditions
of local consumption,
which operating performance
in the previous
year was slowdown from
industrial downturn.
FINANCIAL
INFORMATION
The capital was registered
at Bht. 100 million, divided
into 10 million shares of
Bht. 10 each.
The capital was
increased / decreased later as
followings:
Bht. 400
million on February
3, 1989
Bht. 600
million on May
12, 1989
Bht. 1,560
million on December
29, 1993
Bht. 2,080
million on June
28, 1995
Bht. 2,600
million on December
28, 1995
Bht. 3,120
million on December
6, 1996
[Decreased] : Bht.
780 million on
October 31, 2003
The
latest registered capital was
increased to Bht.
1,950 million, divided
into 195 million shares of
Bht. 10 each, with
the current capital
paid-up of Bht.
1,480 million.
MAIN
SHAREHOLDERS
[as at June
8, 2015] at
Bht. 148 million
of capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Charoen Pokphand Group
Co., Ltd. Nationality: Thai Address : 313
C.P. Tower, Silom
Rd., Silom,
Bangrak, Bangkok 10500 |
37,573,496 |
25.39 |
|
Charoen Pokphand International Co., Ltd.
Nationality: Thai Address : 313
C.P. Tower, Silom
Rd., Silom,
Bangrak, Bangkok 10500 |
16,163,108 |
10.92 |
|
Mr. Sumeth Chiaravanont Nationality: Thai Address : 18/59
Soi Somkid, Lumpini,
Pathumwan, Bangkok |
8,711,055 |
5.89 |
|
Aquaculture Promotion Co., Ltd.
Nationality: Thai Address : 313
C.P. Tower, Silom
Rd., Silom,
Bangrak, Bangkok 10500 |
8,039,540 |
5.43 |
|
Mr. Dhanin Chearavanont Nationality: Thai Address : 88
Moo 17, T.
Bangpleeyai, A. Bangplee,
Samutprakarn |
7,311,055 |
4.94 |
|
Mr. Charan Chiaravanont Nationality: Thai Address : 10
Soi 8, Vathanee
Rd., Kannayao,
Buengkum, Bangkok |
7,107,322 |
4.80 |
|
|
|
|
|
Charoen Pokphand Food
Public Co., Ltd. Nationality: Thai Address : 313
C.P. Tower, Silom
Rd., Silom,
Bangrak, Bangkok 10500 |
6,669,923 |
4.51 |
|
Mr. Montri Chiaravanont Nationality: Thai Address : 299-301
Songsawad Rd., Samphanthawong, Bangkok |
5,195,221 |
3.51 |
|
Others |
51,229,280 |
34.61 |
Total
Shareholders: 109
Share
Structure
[as at
June 8, 2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
107 |
146,492,960 |
98.98 |
|
Foreign |
2 |
1,507,040 |
1.02 |
|
Total |
109 |
148,000,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Nongluck Pattanabundit No.
4713
BALANCE
SHEET [BAHT]
The latest financial
figures published as
at December 31,
2014, 2013 &
2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 [Adjusted] |
|
|
|
|
|
|
Cash and Cash Equivalents |
70,258,276 |
250,615,653 |
379,260,707 |
|
Trade Account &
Other Receivable |
254,156,342 |
224,075,097 |
202,427,893 |
|
Short-term Lending to
Related Company |
1,569,512,997 |
1,956,189,540 |
798,131,583 |
|
Inventories |
230,366,755 |
202,290,530 |
214,387,177 |
|
Deferred Dividend from
Related Company |
- |
- |
81,021,700 |
|
Other Current Assets |
28,586,153 |
38,354,779 |
35,580,132 |
|
|
|
|
|
|
Total Current Assets
|
2,152,880,523 |
2,671,525,599 |
1,710,809,192 |
|
Investment in Subsidiaries |
2,106,558,075 |
2,054,376,975 |
2,045,341,455 |
|
Fixed Assets |
252,636,564 |
289,545,474 |
312,983,236 |
|
Real Estate for Investment |
266,121,345 |
271,919,489 |
276,167,698 |
|
Deferred Income Tax Assets |
39,548,391 |
44,794,484 |
49,761,886 |
|
Other Non-current Assets |
8,882,900 |
10,292,990 |
30,774,892 |
|
Total Assets |
4,826,627,798 |
5,342,455,011 |
4,425,838,359 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 [Adjusted] |
|
|
|
|
|
|
Bank Overdraft & Short-term
Loan from Financial Institution |
521,421,228 |
1,079,384,755 |
90,110,617 |
|
Trade Account &
Other Payable |
189,805,754 |
179,392,038 |
174,722,176 |
|
Short-term Loan from Related Company |
79,703,625 |
91,449,693 |
388,878,999 |
|
Accrued Income Tax
|
6,565,336 |
21,265,449 |
- |
|
Other Current Liabilities |
43,998,771 |
31,241,572 |
32,092,148 |
|
|
|
|
|
|
Total Current Liabilities |
841,494,714 |
1,402,733,507 |
685,803,940 |
|
Employee Benefits Obligation |
37,825,829 |
29,831,344 |
17,052,597 |
|
|
|
|
|
|
Total Liabilities |
879,320,543 |
1,432,564,851 |
702,856,537 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share Capital :
Baht. 10 par
value authorized & issued share
capital 195,000,000 shares |
1,950,000,000 |
1,950,000,000 |
1,950,000,000 |
|
|
|
|
|
|
Capital Paid |
1,480,000,000 |
1,480,000,000 |
1,480,000,000 |
|
Surplus on Share Capital |
388,665,888 |
388,665,888 |
388,665,888 |
|
Retained Earning Appropriated for Statutory Reserve |
148,000,000 |
148,000,000 |
128,433,028 |
|
Unappropriated |
1,930,641,367 |
1,893,224,272 |
1,725,882,906 |
|
Total Shareholders' Equity |
3,947,307,255 |
3,909,890,160 |
3,722,981,822 |
|
|
|
|
|
|
Total Liabilities & Shareholders' Equity |
4,826,627,798 |
5,342,455,011 |
4,425,838,359 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 [Adjusted] |
|
|
|
|
|
|
Sales & Service
Income |
1,432,257,559 |
1,416,784,459 |
1,537,754,839 |
|
Other Services Income |
72,187,989 |
69,249,292 |
63,509,996 |
|
Dividend Income |
175,254,585 |
271,517,943 |
282,734,001 |
|
Other Income |
136,199,390 |
139,478,843 |
120,239,893 |
|
Total Revenues |
1,815,899,523 |
1,897,030,537 |
2,004,238,729 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
1,261,521,393 |
1,219,395,929 |
1,322,513,631 |
|
Selling Expenses |
50,059,475 |
46,105,852 |
62,458,866 |
|
Administrative Expenses |
119,173,591 |
125,916,456 |
228,793,931 |
|
Total Expenses |
1,430,754,459 |
1,391,418,237 |
1,613,766,428 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income Tax |
385,145,064 |
505,612,300 |
390,472,301 |
|
Financial Cost |
[32,060,185] |
[44,620,845] |
[7,191,497] |
|
Income Tax |
[34,467,784] |
[44,683,117] |
[46,588,803] |
|
Net Profit / [Loss] |
318,617,095 |
416,308,338 |
336,692,001 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.56 |
1.90 |
2.49 |
|
QUICK RATIO |
TIMES |
2.25 |
1.73 |
2.01 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.67 |
4.89 |
4.91 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.30 |
0.27 |
0.35 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
66.65 |
60.55 |
59.17 |
|
INVENTORY TURNOVER |
TIMES |
5.48 |
6.03 |
6.17 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
64.77 |
57.73 |
48.05 |
|
RECEIVABLES TURNOVER |
TIMES |
5.64 |
6.32 |
7.60 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
54.92 |
53.70 |
48.22 |
|
CASH CONVERSION CYCLE |
DAYS |
76.51 |
64.58 |
59.00 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
88.08 |
86.07 |
86.00 |
|
SELLING & ADMINISTRATION |
% |
11.82 |
12.14 |
18.94 |
|
INTEREST |
% |
2.24 |
3.15 |
0.47 |
|
GROSS PROFIT MARGIN |
% |
38.71 |
47.83 |
44.33 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
26.89 |
35.69 |
25.39 |
|
NET PROFIT MARGIN |
% |
22.25 |
29.38 |
21.90 |
|
RETURN ON EQUITY |
% |
8.07 |
10.65 |
9.04 |
|
RETURN ON ASSET |
% |
6.60 |
7.79 |
7.61 |
|
EARNING PER SHARE |
BAHT |
2.15 |
2.81 |
2.27 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.18 |
0.27 |
0.16 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.22 |
0.37 |
0.19 |
|
TIME INTEREST EARNED |
TIMES |
12.01 |
11.33 |
54.30 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
1.09 |
(7.87) |
|
|
OPERATING PROFIT |
% |
(23.83) |
29.49 |
|
|
NET PROFIT |
% |
(23.47) |
23.65 |
|
|
FIXED ASSETS |
% |
(12.75) |
(7.49) |
|
|
TOTAL ASSETS |
% |
(9.66) |
20.71 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is 1.09%. Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
38.71 |
Impressive |
Industrial
Average |
6.40 |
|
Net Profit Margin |
22.25 |
Impressive |
Industrial
Average |
6.53 |
|
Return on Assets |
6.60 |
Satisfactory |
Industrial
Average |
8.31 |
|
Return on Equity |
8.07 |
Acceptable |
Industrial
Average |
13.76 |
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 38.71%. 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 22.25%, higher figure when compared with
those of its average competitors in the same industry, indicated that business
was an efficient operator in a dominant
position within its industry.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. When compared with the
industry average, it was lower, the company's figure is 6.6%.
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 8.07%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
2.56 |
Impressive |
Industrial
Average |
1.92 |
|
Quick Ratio |
2.25 |
|
|
|
|
Cash Conversion Cycle |
76.51 |
|
|
|
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 2.56 times in 2014, increased from 1.9 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 2.25 times in 2014,
increased from 1.73 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 77 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.18 |
Impressive |
Industrial
Average |
0.36 |
|
Debt to Equity Ratio |
0.22 |
Impressive |
Industrial
Average |
0.56 |
|
Times Interest Earned |
12.01 |
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 12.02 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 0.18 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 |
5.67 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.30 |
Deteriorated |
Industrial
Average |
1.27 |
|
Inventory Conversion Period |
66.65 |
|
|
|
|
Inventory Turnover |
5.48 |
Impressive |
Industrial
Average |
4.98 |
|
Receivables Conversion Period |
64.77 |
|
|
|
|
Receivables Turnover |
5.64 |
Impressive |
Industrial
Average |
4.84 |
|
Payables Conversion Period |
54.92 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.64 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 61 days at the
end of 2013 to 67 days at the end of 2014. This represents a negative trend.
And Inventory turnover has decreased from 6.03 times in year 2013 to 5.48 times
in year 2014.
The company's Total Asset Turnover is calculated as 0.3 times and 0.27
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 Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.34 |
|
|
1 |
Rs.100.03 |
|
Euro |
1 |
Rs.71.45 |
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
|
|
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.