|
|
|
MIRA INFORM REPORT
|
Report No. : |
496797 |
|
Report Date : |
08.03.2018 |
IDENTIFICATION DETAILS
|
Name : |
SCG PLASTICS CO. LTD. |
|
|
|
|
Formerly Known As : |
CCC CHEMICAL COMMERCE CO. LTD. |
|
|
|
|
Registered Office : |
1 Siam Cement
Road, Kwaeng Bangsue,
Khet Bangsue, Bangkok
10800, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2016 |
|
|
|
|
Date of Incorporation : |
25.04.1995 |
|
|
|
|
Com. Reg. No.: |
0105538050741 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject’s
activities are distributor
and exporter wide
range of Poly-olefins, such as Polyethylene [PE], [EL-Lene
Polyethylene Plastic Resin],
Polypropylene [PP], [EL-Pro
Polypropylene Plastic
Resin], High Density
Polyethylene [HDPE], Low
Density Polyethylene [LDPE], and Linear Low Density Polyethylene [LLDPE], as
well as Pulverized Powders and
Compounded Resins. |
|
|
|
|
No. of Employees : |
150 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
B |
|
Credit Rating |
Explanation |
Rating Comments |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but Correct |
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|
|
|
Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
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 farmers, 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 had 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 and address
SCG PLASTICS CO., LTD.
[FORMER:
CCC CHEMICAL COMMERCE CO., LTD.]
SUMMARY
BUSINESS
ADDRESS : 1
SIAM CEMENT ROAD,
KWAENG BANGSUE,
KHET BANGSUE,
BANGKOK 10800, THAILAND
TELEPHONE : [66] 2586-6262,
2586-5809, 2586-5897, 2586-5988,
2586-4872 2586-2510,
2586-6161
FAX :
[66] 2586-5514,
2586-2093, 2586-3907, 2910-4022
E-MAIL
ADDRESS : chalermh@scg.co.th
sirinutj@scg.co.th
info@cementhaichemicals.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1995
REGISTRATION
NO. : 0105538050741 [Former : [1]
1129/]2538]
TAX
ID NO. : 3011580127
CAPITAL REGISTERED : BHT. 10,000,000
CAPITAL PAID-UP : BHT. 5,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
SHAREHOLDER’S PROPORTION : THAI :
100%
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SAKCHAI PATIPARNPREECHAVUD, THAI
MANAGING DIRECTOR
NO. OF STAFF : 150
LINES
OF BUSINESS : PETROCHEMICAL 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 April
25, 1995 as
a private limited
company under the
registered name “Siam
Chemical Trading Co., Ltd.” with
the business objective
to distribute petrochemical
products, specialized in
Poly-olefins to both
domestic and export
markets. On January 2, 2002, the subject’s
name was changed to “CCC Chemical
Commerce Co., Ltd.”, and
finally changed to “SCG PLASTICS
CO., LTD.” on
January 3, 2007. It
employs approximately 150
staff.
At present, subject
is a wholly
owned subsidiary of
“SCG Chemicals Co.,
Ltd.” [Former : Cementhai
Chemicals Co., Ltd.],
which is a
subsidiary of Siam
Cement Public Company
Limited, and is
also a member
of The Siam
Cement Group in
petrochemicals business, which
has over 30
subsidiaries and affiliated
companies.
The
subject’s registered address
is 1 Siam Cement Rd.,
Kwaeng Bangsue, Khet
Bangsue, Bangkok 10800,
and this is
the subject’s current
operation address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Somchai Wangwattanapanich |
|
Thai |
58 |
|
Mr. Cholanat Yanaranop |
|
Thai |
58 |
|
Mr. Sakchai Patiparnpreechavud |
|
Thai |
50 |
|
Mr. Chavalit Ekabut |
|
Thai |
58 |
AUTHORIZED
PERSON
Any two of
the above directors
can jointly sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Sakchai
Patiparnpreechavud is the
Managing Director.
He is Thai
nationality with the
age of 50
years old.
Mr. Visith Trichaivichitkul is the
Export Sales Manager.
He is Thai
nationality.
Mr. Chaovalit Treechak is
the Local Sales
Manager.
He is Thai
nationality.
BUSINESS
OPERATIONS
The
subject’s activities are
distributor and exporter
wide range of
Poly-olefins, such as
Polyethylene [PE], [EL-Lene Polyethylene
Plastic Resin], Polypropylene
[PP], [EL-Pro Polypropylene Plastic Resin],
High Density Polyethylene [HDPE], Low Density Polyethylene [LDPE], and Linear
Low Density Polyethylene [LLDPE], as
well as
Pulverized Powders and
Compounded Resins.
PURCHASE
100% of the products
is purchased from
associated companies in Petrochemical Business
of Siam Cement
Group.
MAJOR SUPPLIERS
Thai Polyethylene Co.,
Ltd : Thailand
Thai Polypropylene Co., Ltd. : Thailand
SCG Polyolefins Co.,
Ltd. : Thailand
SALES [LOCAL]
30% of its
products is sold
locally to manufacturers, wholesalers
and end-users.
EXPORT [COUNTRIES]
70% of the
products is exported
to Hong Kong,
Indonesia, Malaysia, India,
Singapore, Australia, Republic
of China, Vietnam,
Japan, Myanmar, Laos,
Taiwan, Chile, Pakistan, United States of America, Bangladesh,
Hong Kong, Russia, United Arab
Emirates, Nigeria, Korea,
New Zealand, Cambodia,
Brunei, and Philippines.
The subject has
representatives and overseas
branches in Guizhou,
Shanghai, Myanmar, Laos
and Vietnam.
MAJOR CUSTOMERS
CCC Chemical Commerce
[China] Co., Ltd. : Republic
of China
Grand Siam Composites
Co., Ltd. : Thailand
SCG Trading [U.S.A]
Inc. :
United States of
America
Universal Polymer Co.,
Ltd. : Thailand
MC Industrial Chemical
Co., Ltd. :
Thailand
Mehran Plastics Industries
Pvt. Ltd. :
Pakistan
Shiv Lila Polymers
Ltd. : Nigeria
SUBSIDIARIES
& AFFILIATED COMPANIES
The Siam Cement Group
[Petrochemical Business]:
|
Name |
Country |
Line of
Business |
|
|
|
|
|
Thai Polyethylene Co., Ltd. |
Thailand |
Manufacturer of polyethylene [HDPE,
MDPE, LLDPE] |
|
Thai Polypropylene Co., Ltd. |
Thailand |
Manufacturer of polypropylene |
|
SCG Plastics Co.,
Ltd. |
Thailand |
Trading company |
|
SCG Performance Chemicals Co., Ltd. |
Thailand |
Trading company |
|
SCG Polyolefins Co.,
Ltd. |
Thailand |
Trading company |
|
Rayong Engineering &
Plant Service Co.,
Ltd. |
Thailand |
Engineering and plant
service |
|
RIL 1996 Co.,
Ltd. |
Thailand |
Industrial estate |
|
Rayong Pipeline Co.,
Ltd. |
Thailand |
Rights of way
and use |
|
Map Ta Phut
Tank Terminal Co., Ltd. |
Thailand |
Warehouse and transportation services |
|
Map Ta Phut Olefins Co., Ltd. |
Thailand |
Raw material for plastic
resins |
|
Thai Plastic and
Chemicals Plc. |
Thailand |
Plastic resins and
PVC compound |
|
TPC Paste Resin Co., Ltd. |
Thailand |
PVC paste resins |
|
Nawa Plastic Industries Co., Ltd. |
Thailand |
PVC pipe and PVC products |
|
Nawa Intertech Co., Ltd. |
Thailand |
Molding |
|
etc. |
|
|
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
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.
Exports are against
L/C at sight
and T/T.
BANKING
Kasikornbank Public Company
Limited
[Head Office
: 1 Kasikorn Lane,
Rajburana Rd., Rajburana,
Bangkok]
The Siam Commercial
Bank Public Company Limited
[Head Office
: 9 Ratchadapisek
Rd., Ladyao, Jatujak,
Bangkok 10900]
EMPLOYMENT
The subject employs
approximately 150 office
staff and sales
staff.
LOCATION
DETAILS
The premise is
rented for administrative office
at the heading address.
Premise is located in commercial/residential area.
Branches:
- 271 Sukhumvit Road,
T. Mabtaphut, A. Muang, Rayong
21150
- 14/10 Charoenpattana Road,
T. Huaypong, A. Muang, Rayong
21150
- 112/1 Moo 3, T.
Thungsukhla, A. Sriracha, Chonburi
20230
- 10 I-1 Road,
T. Mabtaphut, A. Muang, Rayong
21150
- 88/4-5 Rayong Highway
No. 3191 Road, T. Mabtaphut,
A. Muang, Rayong 21150
- 29/9 Rayong Highway
No. 3191 Road, T. Mabtaphut,
A. Muang, Rayong 21150
COMMENT
Subject
was formed in 1995 as
a distributor and exporter
of petrochemical products.
Its products are mostly
for industrial users. With
its long experience over
two decades, the subject has
gained creditability and
comprehensive network in the Thai
industry.
The
subject’s performance in
2016 appeared to be comparatively
lower than the
previous years. This was
due to a
number of internal
and external factor.
Global factors whether
economic, social or
environmental situations have
been unstable. Economies
around the world
have in a
constant state of
flux due to fluctuating
oil prices and
unrests in several
regions.
FINANCIAL
INFORMATION
The capital was
registered at Bht.
10,000,000 divided into
100,000 shares of
Bht. 100 each, with
the current capital
paid-up at Bht.
5,000,000 or 100,000
shares of Bht.
50 each.
THE SHAREHOLDERS LISTED
WERE : [as
at April 18, 2017]
at Bht. 5,000,000
of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
SCG Chemicals Co., Ltd. Nationality: Thai Address : 1 Siam
Cement Rd., Kwaeng
Bangsue, Khet Bangsue,
Bangkok |
99,998 |
100.00 |
|
Mrs. Veeranuch Setthamethikul Nationality: Thai Address : 40/29
Moo 6, Kukot,
Lamlukka, Pathumthani |
1 |
- |
|
Ms. Chaliya Bhanubhongs Nationality: Thai Address : 32/29
Ladprao 23 Rd., Kwaeng
Chankasem, Khet Chatuchak,
Bangkok |
1 |
- |
Total Shareholders : 3
Share Structure [as at April 18, 2017]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
100,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
100,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Dusanee Yimsuwan No.
10235
BALANCE SHEET [BAHT]
The
latest financial figures
published for December 31,
2016, 2015 & 2014
were:
ASSETS
|
Current Assets |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Cash and Cash Equivalents |
94,795,540 |
314,695,169 |
251,316,607 |
|
Trade Accounts and Other
Receivable |
5,333,849,640 |
6,521,863,995 |
7,891,881,915 |
|
Short-term Loan |
174,616,227 |
- |
407,685,979 |
|
Inventories |
425,638,297 |
332,883,567 |
702,946,563 |
|
Other Current Assets
|
33,817,980 |
39,664,573 |
166,505,590 |
|
|
|
|
|
|
Total Current Assets
|
6,062,717,684 |
7,209,107,304 |
9,420,336,654 |
|
Investment in Subsidiaries |
2,607,053,578 |
2,607,053,578 |
2,607,053,578 |
|
Other Long-term Investment |
112,157 |
108,071 |
111,778 |
|
Building and Equipment |
13,804,770 |
18,959,192 |
21,856,657 |
|
Intangible Assets |
6,418,292 |
11,962,443 |
24,342,289 |
|
Deferred Income Tax Assets |
26,335,187 |
- |
- |
|
Other Non-current Assets |
73,333,128 |
83,318,662 |
92,775,972 |
|
Total Assets |
8,789,774,796 |
9,930,509,250 |
12,166,476,928 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Trade Accounts and Other
Payable |
6,807,938,001 |
8,317,781,176 |
10,612,167,127 |
|
Short-term Loan |
976,229,942 |
1,239,047,482 |
741,319,093 |
|
Accrued Income Tax |
25,289,800 |
14,195,717 |
65,254,007 |
|
Estimated Short-term Liabilities |
159,901,472 |
- |
- |
|
Other Current Liabilities |
10,715,722 |
8,743,579 |
7,755,067 |
|
|
|
|
|
|
Total Current Liabilities |
7,980,074,937 |
9,579,767,954 |
11,435,951,954 |
|
Deferred Income Tax Liabilities
|
- |
11,760,380 |
28,373,838 |
|
Provision for Employee
Benefit |
23,417,098 |
23,627,692 |
18,774,509 |
|
Total Liabilities |
8,003,492,035 |
9,615,156,026 |
11,483,100,301 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value Authorized and
issued share capital
100,000 shares |
10,000,000 |
10,000,000 |
10,000,000 |
|
|
|
|
|
|
Capital Paid |
5,000,000 |
5,000,000 |
5,000,000 |
|
Retained Earning Appropriated for Statutory Reserve |
1,000,000 |
1,000,000 |
1,000,000 |
|
Unappropriated |
780,241,994 |
309,315,726 |
677,336,163 |
|
Other Components of Shareholders’ Equity |
40,767 |
37,498 |
40,464 |
|
Total Shareholders' Equity |
786,282,761 |
315,353,224 |
683,376,627 |
|
Total Liabilities & Shareholders' Equity |
8,789,774,796 |
9,930,509,250 |
12,166,476,928 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Sales or Services Income |
67,505,967,152 |
81,691,792,600 |
93,043,572,666 |
|
Other Income |
701,747,782 |
34,508,117 |
255,666,012 |
|
Total Revenues |
68,207,714,934 |
81,726,300,717 |
93,299,238,678 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold or Services |
65,454,200,841 |
79,067,847,267 |
90,648,546,884 |
|
Selling Expenses |
988,659,703 |
1,266,286,647 |
1,120,457,927 |
|
Administrative Expenses |
920,898,139 |
826,379,115 |
703,205,285 |
|
Other Expenses |
- |
167,636,105 |
- |
|
Total Expenses |
67,363,758,683 |
81,328,149,134 |
92,472,210,096 |
|
|
|
|
|
|
Profit /[Loss] before Financial
Cost & Income Tax |
843,956,251 |
398,151,583 |
827,028,582 |
|
Financial Cost |
[24,256,268] |
[24,115,390] |
[34,907,832] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax |
819,699,983 |
374,036,193 |
792,120,750 |
|
Income Tax |
[48,773,715] |
[72,056,630] |
[121,535,170] |
|
Net Profit / [Loss] |
770,926,268 |
301,979,563 |
670,585,580 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.76 |
0.75 |
0.82 |
|
QUICK RATIO |
TIMES |
0.70 |
0.71 |
0.75 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4,890.05 |
4,308.82 |
4,256.99 |
|
TOTAL ASSETS TURNOVER |
TIMES |
7.68 |
8.23 |
7.65 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
2.37 |
1.54 |
2.83 |
|
INVENTORY TURNOVER |
TIMES |
153.78 |
237.52 |
128.96 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
28.84 |
29.14 |
30.96 |
|
RECEIVABLES TURNOVER |
TIMES |
12.66 |
12.53 |
11.79 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
37.96 |
38.40 |
42.73 |
|
CASH CONVERSION CYCLE |
DAYS |
(6.75) |
(7.72) |
(8.94) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
96.96 |
96.79 |
97.43 |
|
SELLING & ADMINISTRATION |
% |
2.83 |
2.56 |
1.96 |
|
INTEREST |
% |
0.04 |
0.03 |
0.04 |
|
GROSS PROFIT MARGIN |
% |
4.08 |
3.25 |
2.85 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.25 |
0.49 |
0.89 |
|
NET PROFIT MARGIN |
% |
1.14 |
0.37 |
0.72 |
|
RETURN ON EQUITY |
% |
98.05 |
95.76 |
98.13 |
|
RETURN ON ASSET |
% |
8.77 |
3.04 |
5.51 |
|
EARNING PER SHARE |
BAHT |
15,418.53 |
6,039.59 |
13,411.71 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.91 |
0.97 |
0.94 |
|
DEBT TO EQUITY RATIO |
TIMES |
10.18 |
30.49 |
16.80 |
|
TIME INTEREST EARNED |
TIMES |
34.79 |
16.51 |
23.69 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(17.37) |
(12.20) |
|
|
OPERATING PROFIT |
% |
111.97 |
(51.86) |
|
|
NET PROFIT |
% |
155.29 |
(54.97) |
|
|
FIXED ASSETS |
% |
(27.19) |
(13.26) |
|
|
TOTAL ASSETS |
% |
(11.49) |
(18.38) |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -17.37%. Turnover has decreased from THB
81,691,792,600.00 in 2015 to THB 67,505,967,152.00 in 2016. While net profit has
increased from THB 301,979,563.00 in 2015 to THB 770,926,268.00 in 2016. And
total assets has decreased from THB 9,930,509,250.00 in 2015 to THB
8,789,774,796.00 in 2016.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
4.08 |
Deteriorated |
Industrial
Average |
35.44 |
|
Net Profit Margin |
1.14 |
Deteriorated |
Industrial
Average |
4.84 |
|
Return on Assets |
8.77 |
Deteriorated |
Industrial
Average |
42.13 |
|
Return on Equity |
98.05 |
Satisfactory |
Industrial
Average |
177.23 |
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 4.08%. 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 1.14%.
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 8.77%.
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 98.05%.
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 |
0.76 |
Risky |
Industrial
Average |
1.15 |
|
Quick Ratio |
0.70 |
|
|
|
|
Cash Conversion Cycle |
(6.75) |
|
|
|
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 0.76 times in 2016, increase from 0.75 times, then the company may not be
efficiently using its current assets. 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 0.7 times in 2016,
decrease from 0.71 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 -7 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.91 |
Acceptable |
Industrial
Average |
0.75 |
|
Debt to Equity Ratio |
10.18 |
Risky |
Industrial
Average |
3.06 |
|
Times Interest Earned |
34.79 |
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 34.8 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 0.91 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
ACTIVITY RATIO
|
Fixed Assets Turnover |
4,890.05 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
7.68 |
Satisfactory |
Industrial
Average |
8.70 |
|
Inventory Conversion Period |
2.37 |
|
|
|
|
Inventory Turnover |
153.78 |
Impressive |
Industrial
Average |
49.52 |
|
Receivables Conversion Period |
28.84 |
|
|
|
|
Receivables Turnover |
12.66 |
Impressive |
Industrial
Average |
10.51 |
|
Payables Conversion Period |
37.96 |
|
|
|
The company's Account Receivable Ratio is calculated as 12.66 and 12.53
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 2 days at the end
of 2015 to 2 days at the end of 2016. This represents a negative trend. And
Inventory turnover has decreased from 237.52 times in year 2015 to 153.78 times
in year 2016.
The company's Total Asset Turnover is calculated as 7.68 times and 8.23
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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.96 |
|
|
1 |
INR 90.34 |
|
Euro |
1 |
INR 80.75 |
|
THB |
1 |
INR 2.08 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
|
|
|
|
Report Prepared
by : |
TRU |
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.