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%20LTD%20%20-%20486407%2017-Jan-2018_files/image017.jpg){kind=small}
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MIRA INFORM REPORT
|
Report No. : |
486407 |
|
Report Date : |
17.01.2018 |
IDENTIFICATION DETAILS
|
Name : |
NATIONAL STARCH AND CHEMICAL (THAILAND) LTD. |
|
|
|
|
Registered Office : |
11th Floor, Bangna Tower C, 40/14 Moo 12, Bangna-Trad Road, Bangkaew, Bangplee, Samutprakarn 10540 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2016 |
|
|
|
|
Date of Incorporation : |
2003 |
|
|
|
|
Com. Reg. No.: |
0115546005547 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in manufacturer,
distributor and exporter of
modified starch. |
|
|
|
|
No. of Employees : |
650 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd 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
NATIONAL STARCH
AND CHEMICAL (THAILAND)
LTD.
SUMMARY
BUSINESS ADDRESS : 11th FLOOR,
BANGNA TOWER C,
40/14 MOO
12, BANGNA-TRAD ROAD,
BANGKAEW, BANGPLEE,
SAMUTPRAKARN 10540,
THAILAND
TELEPHONE : [66] 2312-0530-45, 2725-0200
FAX : [66]
2312-0258-9, 2312-0547, 2751-9014
E-MAIL ADDRESS : boonmee.wattanaruangrong@ingredion.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2003
REGISTRATION NO.
: 0115546005547
TAX ID NO. : 3030962270
CAPITAL
REGISTERED : BHT.
2,915,208,300
CAPITAL
PAID-UP : BHT.
2,915,208,300
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
RISHANDRAN PILLAY, SOUTH
AFRICAN
VICE PRESIDENT AND CHIEF EXECUTIVE OFFICER
NO. OF
STAFF : 650
LINES OF
BUSINESS : MODIFIED STARCH
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 July 1, 2003 as a
private limited company
under the registered
name NATIONAL STARCH AND
CHEMICAL (THAILAND) LTD.
by a merger between National Starch
& Chemical (Thailand)
Ltd., the registered
no. 0105499000882 and National
Adhesives Ltd., the registered no. 0105513005025, with
the business objective
to manufacture and
market modified starch
to both domestic and
international markets. It
currently employs 650
staff.
At
present, the subject
is a wholly
owned subsidiary of
Ingredion (Thailand) Company
Limited, which is a member
of Ingredion Incorporated, in
U.S.A.
The
subject’s registered address
is 11th Floor,
Bangna Tower C,
40/14 Moo 12,
Bangna-Trad Rd., Bangkaew, Bangplee,
Samutprakarn 10540, and this is the subject’s current
business address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Rishandran
Pillay |
|
South African |
52 |
|
Mrs. Bijie
Thomas Elavinkal |
|
Singaporean |
44 |
|
Mr. Jorgen Kokke |
|
Dutch |
50 |
|
Mr.
Phairote Chowtivicha |
|
Thai |
44 |
|
Mr. Richard
John O’Shanna |
|
American |
61 |
AUTHORIZED
PERSON
Any two
of the above
mentioned directors can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Rishandran
Pillay is the
Vice President & Chief
Executive Officer.
He is
South African nationality
with the age
of 52 years
old.
Mr.
Boonmee Wattanaruangrong is the
Vice President &
Agri-Business Director.
He is
Thai nationality.
Mr. Santhad
Saensuk a Thai
is the Factory
Manager [Rayong Factory].
He is
Thai nationality.
Mr.
Kovit Larpchit is
the Factory Manager
[Karasin Factory].
He is
Thai nationality.
Mrs. Thanyarat
Visaikom is the
Senior Business Development
Manager.
She is
Thai nationality.
Ms.
Mukda Jirawatanaphalin is
the Human Resources Manager.
She is
Thai nationality.
Mr.
Manu Manomaneerat is
the MIS Manager.
He is
Thai nationality.
Mr.
Teerachat Srisawat is
the Senior Procurement
Manager.
He is
Thai nationality.
BUSINESS OPERATION
The
subject’s activity is a manufacturer and
distributor of modified starch,
a key ingredient for foods & beverage, gloves/condom, paper, corrugating,
textile, gypsum, building materials, cosmetics, adhesives, personal cares, pharmaceutical, and pharmaceuticals productions.
Tapioca starch
is extracted from
cassava root and
goes through a
process of drying,
packaging and inspection.
With modern technology
and expertise, it
is converted into a
valuable specialty resource. Cassava is
processed into a
large variety of
vital components used
in a range
of items essential
to daily lives.
Food Products
National Starch’s
range of over
200 specialty food
starches provides key
processing, texture, flavour
and marketing advantages
for a wide
range of consumer
products. They are
used for:
thickening sauces.
creating creaminess
and viscosity in
dairy products.
enhancing softness
in drinks and
thin sauces.
providing expansion
in snack foods.
ensuring crispiness
and adhesion in
battered foods.
providing an
alternative to expensive ingredients such as gum
arabic, casement and
gelatine.
binding meat
and seafood products.
encapsulation in
spray-dried flavours and
creamers.
providing a
high source of
dietary fiber in
noodles, baked food,
health beverages and
cereals.
Health Care
In the
health care and
pharmaceutical industries, the subject
produces wide range
of specialty starches which have
been used as:
carriers, binders
and disintegrants in
tablets and capsules.
coating for
tablets
thickeners in
liquid dosage medicants
dusting powder
for surgical gloves.
Industrial
Applications
National
Starch’s range of
specialty starches are used in a variety of
industrial applications,
such as paper-making
corrugating, tissues, textiles
and biodegradable packaging.
They are used
for :
increasing strength
and productivity in
paper production.
improving printability
and strength for
paper and board,
such as food
packaging and office
paper.
providing water
resistance, strength and
improved productivity in
corrugated boxes.
enhancing softness
and bulk in
tissues.
producing biodegradable, starch - based packaging
and loose - fill materials.
MAJOR BRANDS
“INGREDION”
PRODUCTION CAPACITY
120,000 tons/year
[Rayong Factory]
150,000 tons/year
[Kalasin Factory]
PURCHASE
80% of
raw materials such
as cassava roots
are purchased from over
5,000 local planters, the
remaining 20% including chemical
are imported from
Japan, Germany, Republic of China, India,
Vietnam, Cambodia, Taiwan
and Brazil.
MAJOR SUPPLIERS
Dow Chemical
Thailand Ltd. :
Thailand
BASF (Thai)
Ltd. : Thailand
SALES
80% of
the products is
exported to Australia, U.S.A., New Zealand,
Germany, Malaysia,
Republic of
China, Singapore, Columbia,
Hong Kong, Japan, Canada,
Myanmar, Korea,
Vietnam, Pakistan,
Russia, Uruguay, Argentina,
Mexico, Brazil, Chile,
Ecuador, Ukraine, U.K.,
Kenya, South Africa,
Indonesia, India,
Bangladesh, Sri Lanka,
Nigeria, Panama and
the countries in Europe, the
remaining 20% is
sold locally to
manufacturers and wholesalers.
The subject
currently has over
500 customers both
local and overseas.
MAJOR CUSTOMERS
|
Company |
Country |
|
|
|
|
Medigloves Ltd. |
: Thailand |
|
Safeskin
Corporation (Thailand) Ltd. |
: Thailand |
|
Ansell
(Thailand) Ltd. |
: Thailand |
|
Thai Paper Products
Co., Ltd. |
: Thailand |
|
Kraft Foods Company |
: U.S.A. |
|
Ingredion
Incorporated |
: U.S.A. |
|
Johnson
& Johnson Medical
Mfg. Sdn. Bhd. |
: Malaysia |
|
Bunge
Defiance Pty., Ltd. |
: Australia |
|
Carter Holt
Harvey Penrose Mill |
: New Zealand |
|
Alpina
Productalimenticios SA. |
: Columbia |
|
Food & Cosmetic
Systems Co., Ltd. |
: Thailand |
SUBSIDIARY AND
AFFILIATED COMPANY
The subject
is not found
to have any
subsidiary or affiliated
company here in
Thailand.
LITIGATION
Bankruptcy
and Receivership
There are
no litigation on
bankruptcy and receivership
cases filed against
the subject found
at Legal Execution
Department for the
past five years.
Others
There are
no legal suits
filed against the
subject according to IRICO’S DATABASE
for 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 L/C at
sight or T/T.
BUSINESS TRANSACTION
In term
of sales, the products
are sold to local
customers by cash & credit with the
maximum credit given at 30-60
days, and to
overseas customers by
L/C and T/T.
The subject is
not found to
have problem on
its account receivable.
BANKING
The Siam
Commercial Bank Public
Company Limited
[Head
Office : 9 Ratchadapisek Rd.,
Ladyao, Jatujak, Bangkok
10900]
[Kalasin
Branch : Muang, Kalasin Province]
Citibank N.A.
[Bangkok
Office: 127 South
Sathorn Rd., Thungmahamek,
Sathorn, Bangkok 10120]
Kasikornbank Public
Company Limited
Bangkok Bank
Public Company Limited
EMPLOYMENT
The subject
employs 650 staff.
[office staff and
factory workers]
LOCATION
DETAILS
The
premise is rented
for administrative office at
the heading address. Premise is
located in residential
area.
Factories are
located at the following addresses:
202 Moo 6, Sukhumvit Rd.,
Km. 275, T.
Thungkwarykin, A. Klang,
Rayong 21110
Tel:
[66] 38 669-171-4
Fax: [66] 38
669-020, Area: 400,000
sq.m.
41 Moo
7, Theenanon Rd.,
T. Najaraya, A.
Muang, Kalasin 46000
Tel:
[66] 43 812-061
Fax : [66] 43 813-227,
Area: 1,280,000 sq.m.
Warehouse:
18/8 Moo
4, Bangna-Trad Rd.,
K.M. 23, Bangsaothong,
Samutprakarn 10540
112/2 Moo
3, T. Thungsukhla, A. Sriracha,
Chonburi 20230
REMARK
MAXIMUM CREDIT
SHOULD BE GRANTED
AT US$ 20,000,000.
COMMENT
The subject’s
operating performance in
2016 was moderately
fair with a
slightly increase in
sales revenues but
a decrease in
net profit comparing
to the previous
year. Generally, Thailand
has continually been
affected from the
industrial slowdown which
had resulted to
slow consumption of
modified starch.
However, in the
future the company still
believes in its
potential for growth
in food and beverage business
with high growth
rate and in
a good trend.
The company is
also developing operation
system to be
modern and efficiency
in order to have
the company’s edge in
the competition.
FINANCIAL INFORMATION
The capital
was registered at Bht. 264,500,000 divided
into 2,645,000 shares
of Bht. 100 each
with fully paid.
The capital
was increased later
as follows:
Bht. 413,800,000
on May 30,
2013
Bht. 606,800,000
on August 26,
2014
Bht. 719,800,000
on December 19,
2016
Bht. 2,915,208,300 on
December 14, 2017
The latest
registered capital was
increased to Bht.
2,915,208,300 divided into
29,152,083 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE
[as at
December 7, 2017]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ingredion
(Thailand) Company Limited Nationality:
Thai Address
: 40/14 Moo 12, Bangna-Trad Rd.,
Bangkaew, Bangplee,
Samutprakarn |
29,152,081 |
100.00 |
|
Ingredion
Incorporated Nationality:
American Address
: 5 Westbrook
Corporate Center,
Westchester, Illinois, U.S.A. |
1 |
- |
|
Brunob II B.V. Nationality:
Dutch Address
: Herikerbergweg 238
Luna Arena,
Amsterdam Zuidoost,
Noord-Holland,
1101 CM |
1 |
- |
Total Shareholders
: 3
Share Structure
[as at December
7, 2017]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
29,152,081 |
100.00 |
|
Foreign |
2 |
2 |
- |
|
Total |
3 |
29,152,083 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Ms.
Dusanee Yimsuwan No. 10235
NATIONAL STARCH
AND CHEMICAL (THAILAND) LTD.
Financials
BALANCE SHEET [BAHT]
The latest
financial figures published for December 31,
2016, 2015 and
2014 were :
ASSETS
|
Current Assets |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Cash and Cash
Equivalents |
434,046,501 |
1,117,726,890 |
1,160,532,053 |
|
Trade
Accounts and Other
Receivable |
1,068,552,870 |
1,051,960,420 |
1,219,970,087 |
|
Inventories |
468,127,734 |
539,179,061 |
487,040,344 |
|
Other
Current Assets |
56,185,238 |
47,025,261 |
55,167,137 |
|
|
|
|
|
|
Total
Current Assets |
2,026,912,343 |
2,755,891,632 |
2,922,709,621 |
|
Long-term Lending |
- |
1,055,106,000 |
1,073,268,900 |
|
Property, Plant and Equipment |
2,392,346,746 |
1,984,390,228 |
1,575,045,169 |
|
Intangible Assets |
10,333,624 |
14,204,977 |
28,541,137 |
|
Other
Non-current Assets |
3,186,159 |
3,095,183 |
2,925,783 |
|
Total
Assets |
4,432,778,872 |
5,812,688,020 |
5,602,490,610 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Trade
Accounts and Other
Payable |
1,140,668,588 |
843,297,871 |
1,147,268,820 |
|
Accrued Income Tax |
31,885,596 |
26,144,162 |
50,868,175 |
|
Other
Current Liabilities |
39,036,324 |
43,147,287 |
35,696,216 |
|
|
|
|
|
|
Total Current Liabilities |
1,211,590,508 |
912,589,320 |
1,233,833,211 |
|
Long-term Loan |
2,332,805,461 |
3,146,672,208 |
2,874,081,789 |
|
Provision
for Employees’ Benefit |
80,438,634 |
87,461,156 |
83,159,815 |
|
Total
Liabilities |
3,624,834,603 |
4,146,722,684 |
4,191,074,815 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share
capital, Bht. 100
par value
authorized, and issued
share capital 7,198,000 shares
in 2016 |
719,800,000 |
|
|
|
6,068,000 shares
in 2015 & 2014 |
|
606,800,000 |
606,800,000 |
|
|
|
|
|
|
Capital
Paid |
719,800,000 |
606,800,000 |
606,800,000 |
|
Premium on Shares
Capital |
3,026,510 |
3,026,510 |
3,026,510 |
|
Retained Earnings : [Deficit]
Appropriated for Statutory
Reserve |
71,980,000 |
60,680,000 |
60,680,000 |
|
Unappropriated |
13,137,759 |
995,458,826 |
740,909,285 |
|
Total
Shareholders' Equity |
807,944,269 |
1,665,965,336 |
1,411,415,795 |
|
Total
Liabilities and Shareholders' Equity |
4,432,778,872 |
5,812,688,020 |
5,602,490,610 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Sales or
Services Income |
7,650,023,884 |
7,509,709,034 |
8,815,742,730 |
|
Interest Income |
47,011,277 |
60,636,039 |
64,018,376 |
|
Other Income |
70,980,537 |
26,010,927 |
25,594,888 |
|
Total
Revenues |
7,768,015,698 |
7,596,356,000 |
8,905,355,994 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Gods
Sold or Services |
5,899,108,669 |
5,944,493,561 |
7,171,791,742 |
|
Selling Expenses |
308,890,959 |
208,192,993 |
213,243,251 |
|
Administrative
Expenses |
975,721,012 |
521,010,438 |
488,533,218 |
|
Other Expenses |
- |
216,979,827 |
106,678,172 |
|
Total Expenses |
7,183,720,640 |
6,890,676,819 |
7,980,246,383 |
|
|
|
|
|
|
Profit /[Loss]
before Financial Cost
and Income
Tax |
584,295,058 |
705,679,181 |
925,109,611 |
|
Financial Cost |
[137,592,721] |
[141,215,334] |
[134,582,134] |
|
Profit /[Loss]
before Income Tax |
446,702,337 |
564,463,847 |
790,527,477 |
|
Income Tax |
[94,899,404] |
[109,670,306] |
[157,587,766] |
|
Net Profit /
[Loss] |
351,802,933 |
454,793,541 |
632,939,711 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.67 |
3.02 |
2.37 |
|
QUICK RATIO |
TIMES |
1.24 |
2.38 |
1.93 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.20 |
3.78 |
5.60 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.73 |
1.29 |
1.57 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
28.96 |
33.11 |
24.79 |
|
INVENTORY TURNOVER |
TIMES |
12.60 |
11.03 |
14.73 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
50.98 |
51.13 |
50.51 |
|
RECEIVABLES TURNOVER |
TIMES |
7.16 |
7.14 |
7.23 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
70.58 |
42.02 |
58.39 |
|
CASH CONVERSION CYCLE |
DAYS |
9.37 |
42.22 |
16.91 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
77.11 |
79.16 |
81.35 |
|
SELLING & ADMINISTRATION |
% |
16.79 |
9.71 |
7.96 |
|
INTEREST |
% |
1.80 |
1.88 |
1.53 |
|
GROSS PROFIT MARGIN |
% |
24.43 |
22.00 |
19.66 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
7.64 |
9.40 |
10.49 |
|
NET PROFIT MARGIN |
% |
4.60 |
6.06 |
7.18 |
|
RETURN ON EQUITY |
% |
43.54 |
27.30 |
44.84 |
|
RETURN ON ASSET |
% |
7.94 |
7.82 |
11.30 |
|
EARNING PER SHARE |
BAHT |
48.88 |
74.95 |
104.31 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.82 |
0.71 |
0.75 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.49 |
2.49 |
2.97 |
|
TIME INTEREST EARNED |
TIMES |
4.25 |
5.00 |
6.87 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
1.87 |
(14.81) |
|
|
OPERATING PROFIT |
% |
(17.20) |
(23.72) |
|
|
NET PROFIT |
% |
(22.65) |
(28.15) |
|
|
FIXED ASSETS |
% |
20.56 |
25.99 |
|
|
TOTAL ASSETS |
% |
(23.74) |
3.75 |
|
ANNUAL
GROWTH : ACCEPTABLE
An annual sales growth is 1.87%.
Turnover has increased from THB
PROFITABILITY : EXCELLENT
%20LTD%20%20-%20486407%2017-Jan-2018_files/image022.gif)
PROFITABILITY
RATIO
|
Gross Profit Margin |
24.43 |
Impressive |
Industrial Average |
19.57 |
|
Net Profit Margin |
4.60 |
Impressive |
Industrial Average |
3.51 |
|
Return on Assets |
7.94 |
Impressive |
Industrial Average |
4.26 |
|
Return on Equity |
43.54 |
Impressive |
Industrial Average |
10.34 |
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 24.43%. 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 4.6%, 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 7.94%, 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 43.54%, 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
%20LTD%20%20-%20486407%2017-Jan-2018_files/image024.gif)
LIQUIDITY RATIO
|
Current Ratio |
1.67 |
Impressive |
Industrial Average |
0.93 |
|
Quick Ratio |
1.24 |
|
|
|
|
Cash Conversion Cycle |
9.37 |
|
|
|
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 1.67 times
in 2016, decrease from 3.02 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 1.24 times in 2016, decrease from
2.38 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 10 days.
Trend
of the average competitors in the same industry for last 5 years
Current
Ratio Downtrend
LEVERAGE : ACCEPTABLE
%20LTD%20%20-%20486407%2017-Jan-2018_files/image026.gif)
%20LTD%20%20-%20486407%2017-Jan-2018_files/image028.gif)
LEVERAGE
RATIO
|
Debt Ratio |
0.82 |
Acceptable |
Industrial Average |
0.57 |
|
Debt to Equity Ratio |
4.49 |
Risky |
Industrial Average |
1.33 |
|
Times Interest Earned |
4.25 |
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 higher the percentage means that
the company is using less equity and has stronger leverage position.
Times Interest Earned measuring a
company's ability to meet its debt obligations. Ratio is 4.25 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 0.82
greater than 0.5, most of the company's assets are financed through debt.
Trend
of the average competitors in the same industry for last 5 years
Debt
Ratio Downtrend
Times
Interest Earned Stable
ACTIVITY
: IMPRESSIVE
%20LTD%20%20-%20486407%2017-Jan-2018_files/image030.gif)
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.20 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.73 |
Impressive |
Industrial Average |
1.21 |
|
Inventory Conversion Period |
28.96 |
|
|
|
|
Inventory Turnover |
12.60 |
Impressive |
Industrial Average |
6.40 |
|
Receivables Conversion Period |
50.98 |
|
|
|
|
Receivables Turnover |
7.16 |
Satisfactory |
Industrial Average |
8.07 |
|
Payables Conversion Period |
70.58 |
|
|
|
The company's Account Receivable Ratio
is calculated as 7.16 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 33 days at the end of 2015 to 29 days at the end of 2016. This represents
a positive trend. And Inventory turnover has increased from 11.03 times in year
2015 to 12.6 times in year 2016.
The company's Total Asset Turnover is
calculated as 1.73 times and 1.29 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
|
Key Areas |
Score |
Weight |
Weighted Score |
|
LIQUIDITY RATIO |
3.11 |
25.00 |
77.75 |
|
ACTIVITY RATIO |
3.67 |
20.00 |
73.40 |
|
PROFITABILITY RATIO |
4.00 |
25.00 |
100.00 |
|
LEVERAGE RATIO |
1.78 |
10.00 |
17.80 |
|
ANNUAL GROWTH |
1.60 |
20.00 |
32.00 |
|
Total Weight (excluding - - Score) |
|
100.00 |
|
|
|
|
|
300.95 |
4
- EXCELLENT
3
- IMPRESSIVE
2
- SATISFACTORY
1
- ACCEPTABLE
0
- RISKY
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.76 |
|
|
1 |
INR 87.91 |
|
Euro |
1 |
INR 78.20 |
|
THB |
1 |
INR 2.00 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRA |
|
|
|
|
Report Prepared
by : |
DNS |
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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.