MIRA INFORM REPORT

Report No. :	486459
Report Date :	15.01.2018

IDENTIFICATION DETAILS

Name :	ADITYA BIRLA CHEMICALS (THAILAND) LTD.
Formerly Known As :	THAI ORGANIC CHEMICALS CO., LTD.
Registered Office :	16^th Floor, Mahathun Plaza Building, 888/160-161 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330
Country :	Thailand
Financials (as on) :	31.12.2016
Date of Incorporation :	26.12.1994
Com. Reg. No.:	0105537150963
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 for variety of industries such as consumer goods, foods, pharmaceuticals, water treatment, pulp & papers, leather goods, textiles.
No. of Employees :	400

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Good
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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Thailand	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

THAILAND - ECONOMIC OVERVIEW

With a relatively well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, Thailand is highly dependent on international trade, with exports accounting for about two-thirds of GDP. Thailand’s exports include electronics, agricultural commodities, automobiles and parts, and processed foods. The industry and service sectors produce about 90% of GDP. The agricultural sector, comprised mostly of small-scale farms, contributes only 10% of GDP but employs about one-third of the labor force. Thailand has attracted an estimated 3.0-4.5 million migrant workers, mostly from neighboring countries.

Over the last few decades, Thailand has sustained strong growth and has reduced poverty substantially. In 2013, the Thai Government implemented a nationwide 300 baht (roughly $10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners.

Growth has slowed in the last few years, however, due to domestic political turmoil and sluggish global demand. Nevertheless, Thailand’s economic fundamentals are sound, with low inflation, low unemployment, and reasonable public and external debt levels. Tourism and government spending - mostly on infrastructure and short-term stimulus measures – have helped to boost the economy, and The Bank of Thailand has been supportive, with several interest rate reductions.

Over the longer-term, Thailand faces labor shortages, and domestic debt levels, political uncertainty, and an aging population pose risks to growth.

Source : CIA

Company name

ADITYA BIRLA CHEMICALS (THAILAND) LTD.

[FORMER: THAI ORGANIC CHEMICALS CO., LTD.]

SUMMARY

BUSINESS ADDRESS : 16^TH 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

customerservices.thaichemicals@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. HARI KRISHNA AGARWAL, INDIAN

PRESIDENT

NO. OF STAFF : 400

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 registered name “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 400 staff.

The subject’s registered address is 16^th Floor, Mahathun Plaza Building, 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	49
Mrs. Rajashree Birla		Indian	72
Mr. Hari Krishna Agarwal		Indian	65
Mr. Sanjeev Soon		Indian	55
Mr. Gopikrishna Tulsian		Indian	80
Mr. Bir Kapoor		Indian	53

AUTHORIZED PERSON

Anyone of the above directors can sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Hari Krishna Agarwal is the President.

He is Indian nationality with the age of 65 years old.

Mr. C.S. Seshadri 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 for variety of industries such as consumer goods, foods, pharmaceuticals, water treatment, pulp & papers, leather goods, textiles, etc..

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 Company Limited : Thailand

Mitsubishi Chemical (Thailand) Co., Ltd. : Thailand

Thai-MC Company Limited : 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, Canada, Hong Kong, 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-Palmolive (Thailand) Ltd.	Thailand
Kao Industrial (Thailand) Ltd.	Thailand
ICI Asiatic Chemical Co., Ltd.	Thailand
Thai Rayon Public Company Limited	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 Company Limited

[Poochao Branch : Poochaosamingprai Rd., Samrong, Phrapradaeng, Samutprakarn]

[Maptaphud Branch : Pakornsongkrohraj Rd., Huaypong, Muang, Rayong]

Bangkok Bank Public Company Limited

[Head Office : 333 Silom Rd., Silom, Bangrak, Bangkok 10500]

Kasikornbank Public Company Limited

[Head Office : 1 Kasikorn Lane, Rajburana Rd., Rajburana, Bangkok 10140]

EMPLOYMENT

The subject employs approximately 400 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

16^th 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.

In amidst of challenging market conditions, the subject reported a good business performance in 2016 with an increase in both sales or service income and net profit comparing to the previous year. Generally, its business is solid and growing steadily.

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.

THE SHAREHOLDERS LISTED WERE

[AS AT APRIL 28, 2017]

NAME	HOLDING	%
Thai Polyphosphate and Chemicals Co., Ltd. Nationality: Thai Address : 77 Moo 6, Soi Sukhapibal 1, Poochaosamingprai Rd., T. Samrong, A. Phrapradaeng, Samutprakarn	64,140,251	37.73
Thai Carbon Black Public Co., Ltd. Nationality: Thai Address : 888/122, 888/128 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	50,960,605	29.98
Thai Industrial Management & Trading Co., Ltd. Nationality: Thai Address : 77 Moo 6, Soi Sukhapibal 1, Poochaosamingprai Rd., T. Samrong, A. 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
Ms. Kesorn Methajit Nationality: Thai Address : 100/111 Moo 4, T Namkok, A. Muang, Rayong	700	-
Mr. Shyam Sundar Mahansaria Nationality: Indian Address : 25/10 Soi Sainampueng, Sukhumvit 20 Rd., Klongtoey, Phrakanong, Bangkok	100	-
Mr. Krishna Kishore Maheshwari Nationality: Indian Address : 77 Moo 6, Soi Sukhapibal 1, Poochaosamingprai Rd., T. Samrong, A. Phrapradaeng, Samutprakarn	100	-

Total Shareholders : 8

Share Structure

[as at April 28, 2017]

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.

Ms. Sumana Panpongsanon No. 5872

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2016, 2015 and 2014 were:

ASSETS

Current Assets	2016	2015 [Adjusted]	2014
Cash and Cash Equivalents	54,980,012	49,549,130	78,068,148
Short-term Investment	4,487,508,625	2,839,904,926	1,407,593,310
Trade Accounts and Other Receivable	2,162,476,902	2,232,810,181	2,128,655,618
Short-term Lending	131,811,479	3,592,330	-
Inventories	1,854,610,610	1,838,660,912	2,096,629,763
Other Current Assets	323,084,610	349,360,048	381,077,356
Total Current Assets	9,014,472,238	7,313,877,527	6,092,024,195
Investment in Subsidiary	949,614,213	949,614,213	952,551,531
Long-term Loan to Related Company	391,407,450	525,796,270	655,886,550
Real Estate for Investment	-	27,690,000	93,217,148
Property, Plant and Equipment	3,612,207,035	3,720,071,415	3,900,971,082
Intangible Assets	6,766,519	9,654,813	11,431,960
Deferred Income Tax Assets	72,165,395	62,846,540	69,298,774
Other Non-current Assets	12,626,925	30,856,734	20,186,195
Total Assets	14,059,259,775	12,640,407,512	11,795,567,435

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2016	2015 [Adjusted]	2014
Bank Overdraft and Short-term Loan from Financial Institution	1,559,803,035	791,488,407	1,141,438,920
Trade Accounts and Other Payable	1,370,846,227	1,556,701,293	1,240,407,718
Short-term Loan from Related Company	-	127,560,000	42,520,000
Accrued Income Tax	134,142,321	72,572,109	42,370,531
Other Current Liabilities	90,208,717	34,725,731	72,924,779
Total Current Liabilities	3,155,000,300	2,583,047,540	2,539,661,948
Long-term Loan	-	255,120,000	382,680,000
Employee Benefits Obligation	152,415,192	146,312,108	135,189,523
Reserve for Assets Demolishment	36,717,934	35,648,480	34,610,174
Total Liabilities	3,344,133,426	3,020,128,128	3,092,141,645
Shareholders' Equity
Share capital : Baht 10 par value authorized, and issued 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	44,736,842	40,263,157	35,789,473
Unappropriated	8,969,183,485	7,880,016,227	6,965,703,166
Other Components of Shareholders’ Equity	1,206,022	-	1,933,151
Total Shareholders' Equity	10,715,126,349	9,620,279,384	8,703,425,790
Total Liabilities and Shareholders' Equity	14,059,259,775	12,640,407,512	11,795,567,435

PROFIT & LOSS ACCOUNT

Revenue	2016	2015 [Adjusted]	2014
Sales or Services	12,738,849,133	12,690,675,052	13,433,783,116
Others Income	197,097,527	196,188,170	267,924,237
Total Revenues	12,935,946,660	12,886,863,222	13,701,707,353
Expenses
Cost of Goods Sold or Services	9,836,735,765	10,061,335,813	11,215,100,948
Selling Expenses	1,191,203,067	1,154,219,310	1,218,540,465
Administrative Expenses	502,583,383	506,008,494	441,053,944
Financial Cost	13,186,235	30,168,414	29,425,844
Total Expenses	11,543,708,450	11,751,732,031	12,904,121,201
Profit /[Loss] before Income Tax	1,392,238,210	1,135,131,191	797,586,152
Income Tax	213,597,267	[131,344,446]	[109,545,912]
Net Profit / [Loss] for the Year	1,178,640,943	1,003,786,745	688,040,240
Profit /[Loss] Other Comprehensive :
Profit / [Loss] form estimation according to the mathematical method of insurance for employee benefit project	-	-	[4,852,757]
Income tax related to component of other comprehensive income/[loss]	1,206,022	[1,933,151]	1,933,151
Profit /[Loss] Other Comprehensive	1,206,022	[1,933,151]	[2,919,606]
Total Profit /[Loss] Comprehensive for the Year	1,179,846,965	1,001,853,594	685,120,634

FINANCIAL ANALYSIS

ITEM	UNIT	2016	2015	2014
LIQUIDITY RATIO
CURRENT RATIO	TIMES	2.86	2.83	2.40
QUICK RATIO	TIMES	2.17	1.98	1.42
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	3.53	3.41	3.44
TOTAL ASSETS TURNOVER	TIMES	0.91	1.00	1.14
INVENTORY CONVERSION PERIOD	DAYS	68.82	66.70	68.24
INVENTORY TURNOVER	TIMES	5.30	5.47	5.35
RECEIVABLES CONVERSION PERIOD	DAYS	61.96	64.22	57.84
RECEIVABLES TURNOVER	TIMES	5.89	5.68	6.31
PAYABLES CONVERSION PERIOD	DAYS	50.87	56.47	40.37
CASH CONVERSION CYCLE	DAYS	79.91	74.45	85.70
PROFITABILITY RATIO
COST OF GOODS SOLD	%	77.22	79.28	83.48
SELLING & ADMINISTRATION	%	13.30	13.08	12.35
INTEREST	%	0.10	0.24	0.22
GROSS PROFIT MARGIN	%	24.33	22.26	18.51
NET PROFIT MARGIN BEFORE EX. ITEM	%	10.93	8.94	5.94
NET PROFIT MARGIN	%	9.25	7.91	5.12
RETURN ON EQUITY	%	11.00	10.43	7.91
RETURN ON ASSET	%	8.38	7.94	5.83
EARNING PER SHARE	BAHT	6.93	5.90	4.05
LEVERAGE RATIO
DEBT RATIO	TIMES	0.24	0.24	0.26
DEBT TO EQUITY RATIO	TIMES	0.31	0.31	0.36
TIME INTEREST EARNED	TIMES	105.58	37.63	27.10
ANNUAL GROWTH
SALES GROWTH	%	0.38	(5.53)
OPERATING PROFIT	%	22.65	42.32
NET PROFIT	%	17.42	45.89
FIXED ASSETS	%	(2.90)	(4.64)
TOTAL ASSETS	%	11.22	7.16

ANNUAL GROWTH: IMPRESSIVE

An annual sales growth is 0.38%. Turnover has increased from THB 12,690,675,052.00 in 2015 to THB 12,738,849,133.00 in 2016. While net profit has increased from THB 1,003,786,745.00 in 2015 to THB 1,178,640,943.00 in 2016. And total assets has increased from THB 12,640,407,512.00 in 2015 to THB 14,059,259,775.00 in 2016.

PROFITABILITY: EXCELLENT

PROFITABILITY RATIO

Gross Profit Margin	24.33	Impressive	Industrial Average	14.10
Net Profit Margin	9.25	Impressive	Industrial Average	3.01
Return on Assets	8.38	Impressive	Industrial Average	3.24
Return on Equity	11.00	Impressive	Industrial Average	4.91

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. Gross Profit Margin is 24.33%. 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. Net Profit Margin ratio is 9.25%, 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. Return on Assets ratio is 8.38%, 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 11%, 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 Uptrend

LIQUIDITY : IMPRESSIVE

LIQUIDITY RATIO

Current Ratio	2.86	Impressive	Industrial Average	1.91
Quick Ratio	2.17
Cash Conversion Cycle	79.91

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 2.86 times in 2016, increase from 2.83 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 2.17 times in 2016, increase from 1.98 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 80 days.

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

Current Ratio Uptrend

LEVERAGE : EXCELLENT

LEVERAGE RATIO

Debt Ratio	0.24	Impressive	Industrial Average	0.38
Debt to Equity Ratio	0.31	Impressive	Industrial Average	0.61
Times Interest Earned	105.58	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 105.59 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 0.24 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	3.53	Impressive	Industrial Average	-
Total Assets Turnover	0.91	Satisfactory	Industrial Average	1.07
Inventory Conversion Period	68.82
Inventory Turnover	5.30	Satisfactory	Industrial Average	7.47
Receivables Conversion Period	61.96
Receivables Turnover	5.89	Satisfactory	Industrial Average	6.22
Payables Conversion Period	50.87

The company's Account Receivable Ratio is calculated as 5.89 and 5.68 in 2016 and 2015 respectively. This ratio measures the efficiency of the company in managing its trade debtors to generate revenue. A lower ratio may indicate over extension and collection problems. Conversely, a higher ratio may indicate an overtly stringent policy. In this case, the company's A/R ratio in 2016 increased from 2015. This would suggest the company had good performance in the management of its debt collections.

Inventory Turnover in Days Ratio indicates the liquidity of inventory. It estimates the number of days that it will take to sell the current inventory. Inventory is particularly sensitive to change in business activities. The inventory turnover in days has increased from 67 days at the end of 2015 to 69 days at the end of 2016. This represents a negative trend. And Inventory turnover has decreased from 5.47 times in year 2015 to 5.3 times in year 2016.

The company's Total Asset Turnover is calculated as 0.91 times and 1 times in 2016 and 2015 respectively. This ratio is determined by dividing total assets into total sales turnover. The ratio measures the activity of the assets and the ability of the firm to generate sales through the use of the assets.

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

Fixed Assets Turnover Stable

Total Assets Turnover Downtrend

Inventory Turnover Downtrend

Receivables Turnover Uptrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.53
UK Pound	1	INR 86.05
Euro	1	INR 76.53
Thai Baht	1	INR 1.99

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	PRA
Report Prepared by :	NIT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.