MIRA INFORM REPORT
|
Report No. : |
351357 |
|
Report Date : |
27.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
UBE CHEMICALS [ASIA] PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
18th Floor, Sathorn Square Office Tower, 98 North Sathorn Road, Silom, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2015 |
|
|
|
|
Date of Incorporation : |
01.02.2010 |
|
|
|
|
Com. Reg. No.: |
0107553000042 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged
in manufacturing and
supplying raw materials for
nylon such as
Caprolactam, Nylon 6 [Monofilament], Ammonium Sulfate and Nylon Compound
for textile, agro-chemical, automotive
parts, water treatment
industries |
|
|
|
|
No. of Employee : |
610 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
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|
|
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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 |
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, 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
UBE CHEMICALS
[ASIA] PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS
ADDRES : 18th FLOOR,
SATHORN SQUARE OFFICE TOWER, 98
NORTH SATHORN ROAD,
SILOM,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2206-9300
FAX : [66]
2206-9313, 2206-9316, 2206-9310
E-MAIL
ADDRESS : pirulh@ube.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2010
REGISTRATION
NO. : 0107553000042
TAX
ID NO. : 3033783162
CAPITAL REGISTERED : BHT. 10,739,250,230
CAPITAL PAID-UP : BHT.
10,739,250,230
SHAREHOLDER’S PROPORTION : THAI :
26.22%
JAPANESE :
73.78%
FISCAL YEAR CLOSING DATE : MARCH
31 [Former :
DECEMBER 31]
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : DR. CHARUNYA PHICHITKUL,
THAI
PRESIDENT AND
CHIEF EXECUTIVE OFFICER
NO.
OF STAFF : 610
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
LOW PERFORMANCE
HISTORY
The
subject was established
on February 1, 2010
as a public
limited company under
the name style UBE CHEMICALS [ASIA] PUBLIC
COMPANY LIMITED by
Thai and Japanese groups. The
subject was formed by a merger between
“Thai Caprolactam Public
Company Limited” and “Ube
Nylon [Thailand] Limited”. Its business
objective is to
manufacture and market
industrial chemicals for
various industries to both
domestic and overseas markets. It
currently employs 610
staff.
Subject
is a subsidiary
of Ube Industries,
Ltd., in Japan.
The
subject has been
certified for ISO 9001, ISO 14001
and OHSAS 18001.
The
subject’s registered address
was at 87/2 CRC
Tower All Season
Place, Wireless Road.,
Lumpini, Pathumwan, Bangkok 10330.
In
2011, the subject’s registered
address was relocated to 18th Floor, Sathorn Square Office
Tower, 98 North Sathorn Rd., Silom, Bangrak, Bangkok 10500, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Hideyuki Sugishita |
[x] |
Japanese |
61 |
|
Dr. Charunya Phichitkul |
[x] |
Thai |
61 |
|
Mr. Suriyon Vonpen |
[x] |
Thai |
57 |
|
Mr. Watchara
Pattananijnirundorn |
[x] |
Thai |
53 |
|
Mr. Anuchit Tiranuchit |
[x] |
Thai |
56 |
|
Mr. Masahiko Nojima |
[x] |
Japanese |
57 |
|
Mr. Masato Tzumibara |
[x] |
Japanese |
- |
|
Mr. Masaro Suehiro |
[x] |
Japanese |
55 |
|
Mr. Satoshi Kusano |
[x] |
Japanese |
49 |
|
Mr. Sukrit Surabotsopon |
|
Thai |
57 |
|
Ms. Duangkamol Settanung |
|
Thai |
56 |
|
Mr. Somkiat Lertritpuwadol |
|
Thai |
53 |
AUTHORIZED
PERSON
Any two of
the mentioned directors
[x] can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Dr. Charunya Phichitkul is the President and
Chief Executive Officer.
He is Thai
nationality with the
age of 61
years old.
Mr. Anuchit Tiranuchit
is the Vice
President.
He is Thai
nationality with the
age of 56
years old.
Mr. Masaro Suehiro
is the Vice
President.
He is Japanese
nationality with the
age of 55
years old.
Mr. Boonsom Puangmanee
is the Projects
Manager.
He is Thai
nationality.
Mr. Promdej Sanguanrat
is the Public
Relations Manager.
He is Thai
nationality.
BUSINESS
OPERATIONS
The subject is
engaged in manufacturing
and supplying raw materials
for nylon such
as Caprolactam, Nylon 6
[Monofilament], Ammonium Sulfate and Nylon Compound for textile,
agro-chemical, automotive parts,
water treatment industries
and etc.
PRODUCTION
CAPACITY
Caprolactam : 1,100,000 tons per
annum
Nylon 6 : 75,000 tons per
annum
Nylon compound :
11,000 tons per
annum
Ammonium Sulfate :
540,000 tons per
annum
PURCHASE
Most of raw materials
are purchased from
local suppliers, the
remaining as well
as machinery are
imported from Japan,
Republic of China,
Taiwan, India, Germany
and U.S.A.
MAJOR
SUPPLIERS
Ube
Industries, Ltd. : Japan
IRPC
Public Company Limited : Thailand
PTT
Public Company Limited : Thailand
PTT
Global Chemical Public
Company Limited :
Thailand
SALES
The products are
sold by wholesale
to customers both
local and overseas,
mainly in Japan, Singapore, Korea,
Republic of China, Taiwan, Indonesia, Malaysia,
India, Pakistan, Canada,
Australia, New Zealand,
Vietnam, U.S.A. and the
countries in Europe.
MAJOR
CUSTOMERS
Rayong Fertilizer Trading
Co., Ltd. :
Thailand
P.N.R. Parich Co.,
Ltd. : Thailand
Parich
Fertilizer Co., Ltd. : Thailand
Asia
Fiber Public Company
Limited : Thailand
RELATED
AND AFFILIATED COMPANIES
Thai Synthetic Rubbers
Co., Ltd.
Business Type :
Manufacturer of synthetic
rubber
Ube Technical Center
[Asia] Ltd.
Business Type :
Research and development
center
Rayong Fertilizer Trading
Co., Ltd.
Business Type :
Distributor of ammonium
sulfate
Ube Fine Chemicals
[Asia] Co., Ltd.
Business Type : Distributor
of Hexanediol and
Pentanediol
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 610
office staff and
factory workers.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Branches
and Factories:
There
are 3 factories
on 220,000 square
meters of land,
located at the
following
addresses:
- 140/6
Moo 4, T. Tapong, A. Muang, Rayong
21000
- 140/8
Moo 4, T. Tapong, A. Muang, Rayong
21000
- 140/10
Moo 4, T. Tapong, A. Muang, Rayong
21000.
COMMENT
The
company is poised to
play a vital role as
the leading supplier
for quality Nylon 6 in Thailand.
As a front-runner of top-of-the-line nylon manufacturing for over
three decades, the subject is one of
the world’s leading producers of
raw materials for
nylon (Carpolactum) and
nylon resin as
well.
During 2014-2015, the
company’s business conditions
deteriorated in the chemical business
for a variety of reasons
such as a
response to rapid
market change had
been slow, economic fluctuations, decrease
in demand of
the products, and etc.,
which could result in stagnant market
prices or a
significant narrowing of price
spreads, which had
exerted a material impact on its
performance.
However, the subject
has performed well
in the previous years.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 8,804,437,660
divided into 880,443,766
shares of Bht.
10 each with
fully paid.
In
2002, the registered
capital was increased
to 10,739,250,230 divided
into 1,073,925,023 shares
of Bht. 10
each with fully
paid.
MAIN SHAREHOLDERS
[as
at July 22,
2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ube Industries, Ltd. Nationality: Japanese Address : 1-2-1 Chibaura, Minato-ku,
Tokyo, Japan |
792,286,698 |
73.77 |
|
IRPC Public Company
Limited Nationality: Thai Address : 299
Moo 5, Sukhumvit Rd.,
Cherngnoen,
Muang,, Rayong |
268,481,257 |
25.00 |
|
Bangkok Bank Public
Co., Ltd. Nationality: Thai Address : 333
Silom Rd., Silom, Bangrak,
Bangkok |
9,732,013 |
0.91 |
|
Mr. Sombat Panitchewa Nationality: Thai Address : 247/1
Nanglinchee Rd., Chongnonsi,
Yannawa, Bangkok |
1,999,092 |
0.19 |
|
Others |
1,425,963 |
0.13 |
Total Shareholders : 28
Share
Structure [as at
July 22, 2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
22 |
281,638,115 |
26.22 |
|
Foreign - Japanese |
6 |
792,286,908 |
73.78 |
|
Total |
28 |
1,073,925,023 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Kamolthip
Lertvitvorathep No. 4377
BALANCE
SHEET [BAHT]
The latest financial figures published as
at March 31,
2015, 2014 & 2013 were:
ASSETS
|
Current Assets |
2015 |
2014 |
2013 |
|
|
|
|
|
|
Cash and Cash Equivalents |
245,346,505 |
286,518,269 |
931,915,274 |
|
Trade Accounts and
Other Receivable |
1,328,984,643 |
2,205,240,070 |
1,429,220,734 |
|
Inventories |
2,323,262,920 |
3,090,498,903 |
3,032,121,992 |
|
Refundable Input Tax |
143,517,374 |
242,002,538 |
241,767,753 |
|
Other Current Assets
|
30,149,043 |
33,533,314 |
60,207,467 |
|
|
|
|
|
|
Total Current Assets
|
4,071,260,485 |
5,857,793,094 |
5,695,233,220 |
|
Cash at Bank pledged as a Collateral |
5,000,000 |
5,000,000 |
5,000,000 |
|
Investment in Subsidiaries |
100,000,000 |
100,000,000 |
100,000,000 |
|
Fixed Assets |
9,636,544,400 |
9,298,014,569 |
9,659,733,574 |
|
Intangible Assets |
184,112,042 |
200,639,962 |
222,336,862 |
|
Advance Goods |
240,250,000 |
334,083,336 |
437,083,341 |
|
Deferred Income Tax Assets |
365,425,615 |
84,223,149 |
74,535,593 |
|
Other Non-current Assets |
6,534,643 |
8,154,667 |
7,811,690 |
|
Total Assets |
14,609,127,185 |
15,887,908,777 |
16,201,734,280 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2015 |
2014 |
2013 |
|
|
|
|
|
|
Short-term Loan from Financial Institutions |
1,378,922,480 |
651,628,000 |
- |
|
Trade Accounts
and Other Payable
|
639,377,341 |
1,301,966,587 |
1,497,854,000 |
|
Current Portion of Financial
Lease Contract Liabilities
|
120,838 |
1,055,406 |
2,130,211 |
|
Current Portion of
Long-term Loans |
- |
190,390,720 |
331,420,760 |
|
Current Portion of
Long-term Loans from Customer
Deposit |
14,360,535 |
16,714,845 |
16,509,308 |
|
Advance Receipt |
7,881,082 |
6,108,125 |
8,741,743 |
|
Accrued Expenses |
187,576,094 |
221,162,821 |
250,092,548 |
|
Accrued Income Tax |
- |
- |
61,856,536 |
|
Other Current Liabilities |
2,158,019 |
2,776,557 |
2,694,438 |
|
|
|
|
|
|
Total Current Liabilities |
2,230,396,389 |
2,391,803,061 |
2,171,299,544 |
|
Financial Lease Contract Liabilities, Net of Current Portion |
- |
120,838 |
1,192,710 |
|
Long-term Loan, Net of Current Portion |
- |
- |
175,348,480 |
|
Long-term Loans from Customer Deposit, Net of
Current Portion |
76,802,675 |
105,289,070 |
120,565,153 |
|
Reserve for Employee
Benefits |
67,045,366 |
74,723,471 |
79,715,036 |
|
Cost of Decommissioning Reserve |
3,746,000 |
- |
- |
|
Total Liabilities |
2,377,990,430 |
2,571,936,440 |
2,548,120,923 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 1,073,925,023 shares |
10,739,250,230 |
10,739,250,230 |
10,739,250,230 |
|
|
|
|
|
|
Capital Paid |
10,739,250,230 |
10,739,250,230 |
10,739,250,230 |
|
Premium on Share Capital |
1,941,061,791 |
1,941,061,791 |
1,941,061,791 |
|
Retained Earnings: Appropriated for statutory
reserve |
225,492,666 |
225,492,666 |
220,896,216 |
|
Unappropriated |
[674,667,932] |
410,167,650 |
752,405,120 |
|
Total Shareholders' Equity |
12,231,136,755 |
13,315,972,337 |
13,653,613,357 |
|
Total Liabilities &
Shareholders' Equity |
14,609,127,185 |
15,887,908,777 |
16,201,734,280 |
PROFIT & LOSS ACCOUNT
|
Revenue |
Mar. 31,
2015 |
Mar. 31,
2014 |
Jan. 1,
2013 - Mar. 31,
2013 |
|
|
|
|
|
|
Sales Income |
12,443,186,439 |
14,365,889,751 |
3,378,919,100 |
|
Management Income |
117,336,692 |
128,286,745 |
29,168,639 |
|
Gain on Exchange Rate |
51,140,997 |
- |
32,007,289 |
|
Dividend Income |
- |
109,000,000 |
- |
|
Other Income |
11,890,408 |
27,083,407 |
64,574,078 |
|
Total Revenues |
12,623,554,536 |
14,630,259,903 |
3,504,669,106 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
12,895,084,444 |
13,477,709,635 |
3,474,985,786 |
|
Cost of Management |
99,668,596 |
103,383,351 |
18,613,507 |
|
Selling Expenses |
309,048,571 |
274,494,954 |
59,663,096 |
|
Administrative Expenses |
597,488,672 |
659,276,843 |
209,742,117 |
|
Loss on Exchange Rate |
- |
573,862 |
- |
|
Other Expenses |
73,152,926 |
20,477,146 |
3,269,091 |
|
Total Expenses |
13,974,443,209 |
14,535,915,791 |
3,766,273,597 |
|
|
|
|
|
|
Profit /[Loss] before Financial
Expenses &
Income Tax |
[1,350,888,673] |
94,344,112 |
[261,604,491] |
|
Financial Expenses |
[15,149,375] |
[9,070,525] |
[3,069,734] |
|
Profit /[Loss] before
Income Tax |
[1,366,038,048] |
85,273,587 |
[264,674,225] |
|
Income Tax |
281,202,466 |
6,655,402 |
54,230,534 |
|
|
|
|
|
|
Net Profit / [Loss] |
[1,084,835,582] |
91,928,989 |
[210,443,691] |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2015 |
2014 |
2013 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.83 |
2.45 |
2.62 |
|
QUICK RATIO |
TIMES |
0.71 |
1.04 |
1.09 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.29 |
1.55 |
0.35 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.85 |
0.90 |
0.21 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
65.76 |
83.70 |
318.48 |
|
INVENTORY TURNOVER |
TIMES |
5.55 |
4.36 |
1.15 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
38.98 |
56.03 |
154.39 |
|
RECEIVABLES TURNOVER |
TIMES |
9.36 |
6.51 |
2.36 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
18.10 |
35.26 |
157.33 |
|
CASH CONVERSION CYCLE |
DAYS |
86.65 |
104.47 |
315.54 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
103.63 |
93.82 |
102.84 |
|
SELLING & ADMINISTRATION |
% |
7.29 |
6.50 |
7.97 |
|
INTEREST |
% |
0.12 |
0.06 |
0.09 |
|
GROSS PROFIT MARGIN |
% |
(2.18) |
8.02 |
0.88 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(10.86) |
0.66 |
(7.74) |
|
NET PROFIT MARGIN |
% |
(8.72) |
0.64 |
(6.23) |
|
RETURN ON EQUITY |
% |
(8.87) |
0.69 |
(1.54) |
|
RETURN ON ASSET |
% |
(7.43) |
0.58 |
(1.30) |
|
EARNING PER SHARE |
BAHT |
(1.01) |
0.09 |
(0.20) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.16 |
0.16 |
0.16 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.19 |
0.19 |
0.19 |
|
TIME INTEREST EARNED |
TIMES |
(89.17) |
10.40 |
(85.22) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(13.38) |
325.16 |
|
|
OPERATING PROFIT |
% |
(1,531.87) |
(136.06) |
|
|
NET PROFIT |
% |
(1,280.08) |
143.68 |
|
|
FIXED ASSETS |
% |
3.64 |
(3.74) |
|
|
TOTAL ASSETS |
% |
(8.05) |
(1.94) |
|
ANNUAL
GROWTH : RISKY
An annual sales growth is -13.38%. Turnover has decreased from THB
14,365,889,751.00 in 2014 to THB 12,443,186,439.00 in 2015. While net profit
has decreased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
(2.18) |
Deteriorated |
Industrial
Average |
5.32 |
|
Net Profit Margin |
(8.72) |
Deteriorated |
Industrial
Average |
0.77 |
|
Return on Assets |
(7.43) |
Deteriorated |
Industrial
Average |
2.17 |
|
Return on Equity |
(8.87) |
Deteriorated |
Industrial
Average |
3.32 |
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 -2.18%. 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 -8.72%.
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 -7.43%.
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 -8.87%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.83 |
Impressive |
Industrial
Average |
1.72 |
|
Quick Ratio |
0.71 |
|
|
|
|
Cash Conversion Cycle |
86.65 |
|
|
|
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 1.83 times in 2015, decreased from 2.45 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 0.71 times in 2015,
decreased from 1.04 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 87 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
SATISFACTORY
LEVERAGE RATIO
|
Debt Ratio |
0.16 |
Impressive |
Industrial
Average |
0.34 |
|
Debt to Equity Ratio |
0.19 |
Impressive |
Industrial
Average |
0.52 |
|
Times Interest Earned |
(89.17) |
Risky |
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 -89.18 lower than 1, so the company is not generating
enough cash from EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.16 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
1.29 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.85 |
Acceptable |
Industrial
Average |
1.59 |
|
Inventory Conversion Period |
65.76 |
|
|
|
|
Inventory Turnover |
5.55 |
Acceptable |
Industrial Average |
8.04 |
|
Receivables Conversion Period |
38.98 |
|
|
|
|
Receivables Turnover |
9.36 |
Impressive |
Industrial
Average |
5.88 |
|
Payables Conversion Period |
18.10 |
|
|
|
The company's Account Receivable Ratio is calculated as 9.36 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 84 days at the
end of 2014 to 66 days at the end of 2015. This represents a positive trend.
And Inventory turnover has increased from 4.36 times in year 2014 to 5.55 times
in year 2015.
The company's Total Asset Turnover is calculated as 0.85 times and 0.9
times in 2015 and 2014 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.66.55 |
|
|
1 |
Rs.100.64 |
|
Euro |
1 |
Rs.70.70 |
|
THB |
1 |
Rs.1.86 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
ANK |
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.