|
|
|
MIRA INFORM REPORT
|
Report No. : |
487734 |
|
Report Date : |
25.01.2018 |
IDENTIFICATION DETAILS
|
Name : |
THAI CASTOR OIL
INDUSTRIES CO., LTD. |
|
|
|
|
Registered Office : |
12th Floor, Orakarn
Building, 26/42 Soi Chidlom, Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2016 |
|
|
|
|
Date of Incorporation : |
02.11.1977 |
|
|
|
|
Com. Reg. No.: |
0105520015901 [Former: 1591/2520] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject is
engaged in manufacturing castor
oil: Dehydrated Castor
Oil (DCO), Dehydrated
Castor Oil Fatty
Acid (DCO-FA) and
Highly Conjugated Dehydrated
Castor Oil Fatty
Acid (Hy-diene), and
its derivative products
including castor meal
and castor seed. The products are supplied to various
industries, e.g. pharmaceuticals, cosmetics,
lubricants, plastics, artificial
fibres, paints, varnished
and synthetic resins,
plasticizers and surfactants, fungicides,
printing inks, foods,
consumer goods, artificial
leather, hydraulic fluids,
dyeing aids and
textile finishing materials. |
|
|
|
|
No. of Employees : |
250 |
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 |
Acceptable Risk |
Business dealings permissible with
moderate 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
THAI CASTOR OIL
INDUSTRIES CO., LTD.
SUMMARY
BUSINESS ADDRESS : 12TH FLOOR,
ORAKARN BUILDING,
26/42 SOI CHIDLOM, PLOENCHIT ROAD, LUMPINI, PATHUMWAN, BANGKOK 10330,
THAILAND
TELEPHONE : [66] 2254-1490-7
FAX : [66] 2254-1499,
2253-8355
E-MAIL ADDRESS : tcogroup@thaicastoroil.com
tcogroup@samart.co.th
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1977
REGISTRATION NO. : 0105520015901 [Former: 1591/2520]
TAX ID NO. : 3101086126
CAPITAL REGISTERED : BHT.
80,000,000
CAPITAL PAID-UP : BHT.
80,000,000
SHAREHOLDER’S PROPORTION : THAI
: 73.50%
GERMAN :
26.50%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR.
TAVORN TANTIPONGANANT, THAI
MANAGING DIRECTOR
NO. OF STAFF : 250
LINES OF BUSINESS : CASTOR OIL
AND DERIVATIVE PRODUCTS
MANUFACTURER, DISTRIBUTOR AND EXPORTER
|
CORPORATE PROFILE |
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was
established on November
2, 1977 as
a private limited
company under the registered name
THAI CASTOR OIL
INDUSTRIES CO., LTD.,
by Thai and
German groups, in
order to manufacture
and distribute castor
oil and derivative
products for domestic
and international markets.
It currently employs
approximately 250 staff.
The subject is
a joint venture
between Thai groups
and Alberdingk Boley
GmbH., of Germany,
with holding around
73.50% and 26.50%
of investment, respectively.
The subject’s registered
address is 12th Flr., Orakarn
Bldg., 26/42 Soi
Chidlom,
Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330,
and this is
the subject’s current operation address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Prasard Chirapatsakul |
[x] |
Thai |
79 |
|
Mr. Tavorn Tantiponganant |
[x] |
Thai |
72 |
|
Mr. Karn Sittajarnpong |
[x] |
Thai |
69 |
|
Mr. Noppadol Tantiponganant |
[x] |
Thai |
54 |
|
Mrs. Nitraporn Chabchitrchaidol |
[x] |
Thai |
41 |
|
Mr. Frank Dreisorner |
|
German |
59 |
|
Mr. Timm Wiegmann |
|
German |
62 |
|
Mr. Visaroot Tantiponganant |
[x] |
Thai |
37 |
|
Mr. Sirichai Tantiponganant |
[x] |
Thai |
54 |
|
Mr. Achavaphol Chabchitrchaidol |
[x] |
Thai |
42 |
|
Mr. Poom Tantiponganant |
[x] |
Thai |
31 |
AUTHORIZED PERSON
Any two of
the mentioned directors
[x] can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Tavorn Tantiponganant is
the Managing Director.
He is Thai
nationality with the
age of 72 years
old.
Mr. Karn Sittajarnpong is
the Plant Manager.
He is Thai
nationality with the
age of 69
years old.
Mr. Poom Tantiponganant is
the Sales &
Marketing Manager.
He is Thai
nationality with the
age of 31
years old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
castor oil: Dehydrated
Castor Oil (DCO), Dehydrated Castor
Oil Fatty Acid
(DCO-FA) and Highly
Conjugated Dehydrated Castor
Oil Fatty Acid
(Hy-diene), and its
derivative products including
castor meal and
castor seed. The products are
supplied to various industries,
e.g. pharmaceuticals, cosmetics,
lubricants, plastics, artificial
fibres, paints, varnished
and synthetic resins,
plasticizers and surfactants,
fungicides, printing inks,
foods, consumer goods,
artificial leather, hydraulic
fluids, dyeing aids
and textile finishing
materials.
PRODUCTION
Castor Oil :
18,000 tons/year
Castor Meal : 20,000
tons/year
Castor Seed : 40,000
tons/year
PURCHASE
Most of raw
materials are purchased
from local suppliers
and planters, the
remaining and chemical are imported
from Germany, Taiwan, India, Republic of
China, Laos, Myanmar,
Cambodia and Japan.
MAJOR SUPPLIER
Agriculture Office of
Phrae : Thailand
SALES [LOCAL]
60% of the
products is sold
locally by wholesale
to manufacturers and
end-users.
EXPORT
40% of the
products is exported
to U.S.A., Australia,
New Zealand and
countries in Europe,
Asia, Africa and
Middle East region.
RELATED AND AFFILIATED
COMPANIES
TCO Group of
companies consists of :
T K Wax Co.,
Ltd.
Business Type : Manufacturer
of castor wax
T.J. Pac Co.,
Ltd.
Business Type : Manufacturer
of special wax
for solidifying used
vegetable oil
T S Chemical Co.,
Ltd.
Business Type : Manufacturer
of castor oil
Thai Castor Wax
Company Limited
Business Type : Manufacturer
and distributor of castor
oil & castor wax
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
Company Limited
Kasikornbank Public Company
Limited
EMPLOYMENT
The subject employs
approximately 250 staff.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Factory is located
at 23/2 Moo
7, Petchahueng Rd.,
T. Banyor, A.
Phrapradaeng,
Samutprakarn 10130 on
the land area
of 16,000 Sq. M.
Tel. : [66] 2461-0129, Fax. :
[66] 2815-0699
Warehouse/Research & Development
Center:
- 52/2 Moo
2, T. Wangmuang, A. Wangmuang,
Saraburi 18220
- 75/2 Moo
3, T. Salaengphan, A. Wangmuang,
Saraburi 18220
- 49/8 Moo
7, T. Borhaew, A. Muang,
Lampang 52000
- 23/2 Moo
7, Petchahueng Road,
T. Bangyor, A. Phrapradaeng, Samutprakarn
10130
Branch/ Bangkok Office :
23rd Floor, 1093/123
Moo 12, Bangna,
Bangkok 10260
COMMENT
The subject is the leading
of castor oil manufacturer.
Castor oil has
been used in
many industries. Market demand of castor oil in
overall is promising
with strong consumption from industrial
sector.
Despite a decrease
in sales or
service income in
2016 comparing to the previous year, it
obtained higher net
profit caused by
a decrease in
cost of goods sold
and operating expenses
relatively. Generally, the
subject’s business remains solid with
sustainable profit.
FINANCIAL INFORMATION
The capital was
registered at Bht. 30,000,000 divided
into 300,000 shares of
Bht. 100 each.
The capital was
increased later as
following:
Bht. 40,000,000
on August 31,
1979
Bht. 55,000,000
on December 30,
1986
Bht. 70,000,000
on December 29,
1997
Bht. 80,000,000
on September 10,
2001
The latest registered
capital was increased
to Bht. 80,000,000 divided
into 800,000 shares
of Bht. 100
each with fully
paid.
MAIN SHAREHOLDERS : [as at
March 25, 2017]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Alberdingk Boley GmbH Nationality: German Address : 4150 Krefeld-Uerding Duesseldorfer Str. 51, Germany |
212,000 |
26.50 |
|
Mrs. Chintana Masakee Nationality: Thai Address : 97
Mahogany Building, Room 29 A,
Sukhumvit 24 Rd.,
Klongtoey, Bangkok |
105,707 |
13.21 |
|
Mrs. Nitraporn Chabchitrchaidol
Nationality: Thai Address : 327
Charansanitwong Road, Wat
Thaphra,
Bangkokyai, Bangkok |
96,100 |
12.01 |
|
Mr. Visaroot Tantiponganant Nationality: Thai Address : 327
Charansanitwong Road, Wat
Thaphra,
Bangkokyai, Bangkok |
96,100 |
12.01 |
|
Mr. Poom Tantiponganant Nationality: Thai Address : 327
Charansanitwong Road, Wat
Thaphra,
Bangkokyai, Bangkok |
96,100 |
12.01 |
|
Mrs. Vimolmas Tantiponganant Nationality: Thai Address : 325 Charansanitwong Road,
Wat Thaphra,
Bangkokyai, Bangkok |
40,000 |
5.00 |
|
Vidhayakom Public Company
Limited Nationality: Thai Address : 66
Sukhumvit 21 Rd.,
Klongtoey, Bangkok |
20,000 |
2.50 |
|
Mr. Chinawachara Tantiponganant Nationality: Thai Address : 97
Mahogany Building, Room 29 A,
Sukhumvit 24 Rd.,
Klongtoey, Bangkok |
17,625 |
2.20 |
|
Mr. Noppadol Tantiponganant Nationality: Thai Address : 97
Mahogany Building, Room 29 A,
Sukhumvit 24 Rd.,
Klongtoey, Bangkok |
12,625 |
1.58 |
|
Mr. Sirichai Tantiponganant Nationality: Thai Address : 97
Mahogany Building, Room 29 A,
Sukhumvit 24 Rd.,
Klongtoey, Bangkok |
12,625 |
1.58 |
|
Mr. Kulawat Tantiponganant Nationality: Thai Address : 97
Mahogany Building, Room 29 A,
Sukhumvit 24 Rd.,
Klongtoey, Bangkok |
12,625 |
1.58 |
|
Other Shareholders |
78,493 |
9.82 |
Total Shareholders : 36
Share Structure [as
at March 25,
2017]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
35 |
588,000 |
73.50 |
|
Foreign - German |
1 |
212,000 |
26.50 |
|
Total |
36 |
800,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Somchai Kurujitkosol No.
3277
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 |
577,327.52 |
598,848.57 |
850,470.02 |
|
Trade Accounts &
Other Receivable |
19,369,991.44 |
86,681,909.16 |
46,644,023.74 |
|
Short-term Loan |
40,983,000.00 |
6,720,000.00 |
27,060,000.00 |
|
Inventories |
315,191,297.64 |
188,847,169.19 |
131,566,530.80 |
|
Total Current Assets
|
376,121,616.60 |
282,847,926.92 |
206,121,024.56 |
|
Available-for-sale
Investment |
|
|
|
|
Investment in Associated |
18,763,280.37 |
18,763,280.37 |
18,763,280.37 |
|
Investment in Subsidiaries |
183,802,902.00 |
202,159,329.60 |
225,302,202.00 |
|
Investment Property |
17,533,321.92 |
19,062,500.00 |
20,587,500.00 |
|
Property, Plant and Equipment |
174,496,991.46 |
175,936,462.98 |
178,808,456.19 |
|
Other Non-current Assets |
4,696,014.60 |
4,475,611.80 |
4,143,401.80 |
|
Total Assets |
775,414,126.95 |
703,245,111.67 |
653,725,864.92 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Bank Overdraft and
Short-term Loan from Financial
Institutions |
359,088,835.06 |
381,355,937.61 |
348,661,075.02 |
|
Trade Accounts and
Other Payable |
37,139,994.47 |
33,540,252.94 |
43,810,277.82 |
|
Current Portion of Long-term
Liabilities |
- |
3,354,936.65 |
26,011,217.98 |
|
Accrued Income Tax |
13,048,337.48 |
9,445,173.83 |
2,244,635.75 |
|
Short-term Estimation |
84,020.94 |
83,462.15 |
157,415.41 |
|
Total Current Liabilities |
409,361,187.95 |
427,779,763.18 |
420,884,621.98 |
|
|
|
|
|
|
Long-term Loan |
- |
- |
3,377,721.51 |
|
Provision for Employee
Benefits |
4,745,868.67 |
4,505,579.49 |
3,599,834.63 |
|
Long-term Estimation |
145,802.76 |
222,113.70 |
88,678.98 |
|
Total Liabilities |
414,252,859.38 |
432,507,456.37 |
427,950,857.10 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 800,000 shares |
80,000,000.00 |
80,000,000.00 |
80,000,000.00 |
|
Capital Paid |
80,000,000.00 |
80,000,000.00 |
80,000,000.00 |
|
Retained Earning : [Deficit] Appropriated statutory
reserve |
8,000,000.00 |
8,000,000.00 |
8,000,000.00 |
|
Unappropriated |
273,161,267.57 |
182,737,655.30 |
137,775,007.82 |
|
Total Shareholders' Equity |
361,161,267.57 |
270,737,655.30 |
225,775,007.82 |
|
Total Liabilities and
Shareholders' Equity |
775,414,126.95 |
703,245,111.67 |
653,725,864.92 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Sales or Services Income |
1,224,790,117.13 |
1,261,911,176.30 |
1,166,419,032.80 |
|
Other Income |
31,177,639.42 |
15,269,854.83 |
19,795,873.44 |
|
Total Revenues |
1,255,967,756.55 |
1,277,181,031.13 |
1,186,214,906.24 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold or Services |
1,060,655,118.13 |
1,140,574,566.82 |
1,085,299,224.65 |
|
Selling Expenses |
19,597,020.80 |
24,925,722.08 |
25,268,700.65 |
|
Administrative Expenses |
22,899,505.57 |
30,150,886.95 |
23,344,492.82 |
|
Total Expenses |
1,103,151,644.50 |
1,195,651,175.85 |
1,133,912,418.12 |
|
Profit / [Loss] before Financial
Cost & Income Tax |
152,816,112.05 |
81,529,855.28 |
52,302,488.12 |
|
Financial Cost |
[15,125,034.52] |
[14,969,688.40] |
[18,945,106.25] |
|
Profit / [Loss] before Income Tax |
137,691,077.53 |
66,560,166.88 |
33,357,381.87 |
|
Income Tax |
[23,267,465.26] |
[13,597,519.40] |
[5,700,536.94] |
|
Net Profit / [Loss] |
114,423,612.27 |
52,962,647.48 |
27,656,844.93 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.92 |
0.66 |
0.49 |
|
QUICK RATIO |
TIMES |
0.15 |
0.22 |
0.18 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.02 |
7.17 |
6.52 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.58 |
1.79 |
1.78 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
108.47 |
60.43 |
44.25 |
|
INVENTORY TURNOVER |
TIMES |
3.37 |
6.04 |
8.25 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
5.77 |
25.07 |
14.60 |
|
RECEIVABLES TURNOVER |
TIMES |
63.23 |
14.56 |
25.01 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
12.78 |
10.73 |
14.73 |
|
CASH CONVERSION CYCLE |
DAYS |
101.46 |
74.77 |
44.11 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
86.60 |
90.38 |
93.05 |
|
SELLING & ADMINISTRATION |
% |
3.47 |
4.36 |
4.17 |
|
INTEREST |
% |
1.23 |
1.19 |
1.62 |
|
GROSS PROFIT MARGIN |
% |
15.95 |
10.83 |
8.65 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
12.48 |
6.46 |
4.48 |
|
NET PROFIT MARGIN |
% |
9.34 |
4.20 |
2.37 |
|
RETURN ON EQUITY |
% |
31.68 |
19.56 |
12.25 |
|
RETURN ON ASSET |
% |
14.76 |
7.53 |
4.23 |
|
EARNING PER SHARE |
BAHT |
143.03 |
66.20 |
34.57 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.53 |
0.62 |
0.65 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.15 |
1.60 |
1.90 |
|
TIME INTEREST EARNED |
TIMES |
10.10 |
5.45 |
2.76 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(2.94) |
8.19 |
|
|
OPERATING PROFIT |
% |
87.44 |
55.88 |
|
|
NET PROFIT |
% |
116.05 |
91.50 |
|
|
FIXED ASSETS |
% |
(0.82) |
(1.61) |
|
|
TOTAL ASSETS |
% |
10.26 |
7.57 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is -2.94%. Turnover has decreased from THB
1,261,911,176.30 in 2015 to THB 1,224,790,117.13 in 2016. While net profit has increased
from THB 52,962,647.48 in 2015 to THB 114,423,612.27 in 2016. And total assets
has increased from THB 703,245,111.67 in 2015 to THB 775,414,126.95 in 2016.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
15.95 |
Satisfactory |
Industrial Average |
17.18 |
|
Net Profit Margin |
9.34 |
Impressive |
Industrial Average |
5.95 |
|
Return on Assets |
14.76 |
Impressive |
Industrial Average |
8.34 |
|
Return on Equity |
31.68 |
Impressive |
Industrial Average |
17.21 |
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 15.95%. 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. Net Profit Margin ratio is 9.34%,
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
14.76%, 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 31.68%, 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 : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.92 |
Risky |
Industrial Average |
1.63 |
|
Quick Ratio |
0.15 |
|
|
|
|
Cash Conversion Cycle |
101.46 |
|
|
|
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 0.92 times in 2016, increase from 0.66 times, then the company may have
problems meeting its short-term obligations. When compared with the industry
average, the ratio of the company was lower.
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 0.15 times in 2016,
decrease from 0.22 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 102 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.53 |
Acceptable |
Industrial Average |
0.48 |
|
Debt to Equity Ratio |
1.15 |
Risky |
Industrial Average |
0.91 |
|
Times Interest Earned |
10.10 |
Impressive |
Industrial Average |
- |
Debt to Equity Ratio a measurement of how much suppliers, lenders,
creditors and obligors have committed to the company versus what the
shareholders have committed. A 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 10.11 higher than 1, so the company can pay interest
expenses on outstanding debt.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.53 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
7.02 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.58 |
Impressive |
Industrial Average |
1.40 |
|
Inventory Conversion Period |
108.47 |
|
|
|
|
Inventory Turnover |
3.37 |
Impressive |
Industrial Average |
2.85 |
|
Receivables Conversion Period |
5.77 |
|
|
|
|
Receivables Turnover |
63.23 |
Impressive |
Industrial Average |
5.26 |
|
Payables Conversion Period |
12.78 |
|
|
|
The company's Account Receivable Ratio is calculated as 63.23 and 14.56 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 60 days at the
end of 2015 to 108 days at the end of 2016. This represents a negative trend.
And Inventory turnover has decreased from 6.04 times in year 2015 to 3.37 times
in year 2016.
The company's Total Asset Turnover is calculated as 1.58 times and 1.79 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 63.64 |
|
|
1 |
INR 89.32 |
|
Euro |
1 |
INR 78.45 |
|
Thai Baht |
1 |
INR 2.02 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRA |
|
|
|
|
Report Prepared
by : |
TPT |
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.