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MIRA INFORM REPORT
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Report No. : |
508030 |
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Report Date : |
11.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
CPPC PUBLIC COMPANY LIMITED |
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|
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|
Formerly Known As : |
CHAROEN POKPHAND PETROCHEMICAL CO., LTD. |
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Registered Office : |
18th Floor, C.P. Tower, 313 Silom Road, Silom, Bangrak, Bangkok 10500 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
28.09.1988 |
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Com. Reg. No.: |
0107547000753 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
The
subject’s core business
is engaged in
manufacturing quality plastics,
categorized into 4 groups:
semi-finished plastics, finished
plastics and consumer
plastics, plastic packaging and compound
plastic granules. The
products are used in
various industries e.g. Christmas
trees, vacuum-forming
packaging, stationery, lamps, credit cards,
plastic ware for food
containers, decorative materials
and industrial applications such
as cooling tower
structures and waste
water treatment facilities,
as well as
manufacturing of PVC
cards and paper
cores. |
|
|
|
|
No. of Employees : |
420 |
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 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 |
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Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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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 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.
Thailand’s economy is recovering from slow growth during the years since the 2014 coup. 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, household debt levels, political uncertainty, and an aging population pose risks to growth.
|
Source : CIA |
Company
name
CPPC PUBLIC COMPANY
LIMITED
[ FORMER : CHAROEN
POKPHAND PETROCHEMICAL CO., LTD. ]
SUMMARY
BUSINESS ADDRESS : 18th FLOOR,
C.P. TOWER,
313 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK
10500, THAILAND
TELEPHONE NO. : [66] 2625-8000
TELEFAX : [66] 2638-2685
E-MAIL ADDRESS : rigidsales@cppc.co.th
papersales@cppc.co.th
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHEDD : 1988
REGISTRATION NO. : 0107547000753 [Former
: 0107574700750]
TAX ID NO. : 3101568868
CAPITAL REGISTERED : BHT. 1,950,000,000
CAPITAL PAID-UP : BHT. 1,480,000,000
SHAREHOLDER’S PROPORTION : THAI :
98.98%
FOREIGN :
1.02%
FISCAL YEAR CLOSING
DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE :
MR. PRASERT POONGKUMARN,
THAI
PRESIDENT &
CHIEF EXECUTIVE OFFICER
NO. OF STAFF : 420
LINES OF BUSINESS : RIGID PVC
FILM AND RELATED
PRODUCTS
MANUFACTURER, EXPORTER
AND
DISTRIBUTOR
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 September
28, 1988 as
a private limited
company under the registered
name “Charoen Pokphand Petrochemical
Co., Ltd.” by Thai
groups, in order
to manufacture various
kinds of rigid
PVC film, PVC
card and paper
core products used
in consumers and
other industries.
The subject has
been granted a
promotional privilege by the Board
of Investment [BOI]
and also achieved
ISO 9002 and ISO
14001 certification from
SGS Yarsley on
June 23, 1998 and
in November 2000 respectively.
It is one
of various companies
under the C.P.
Petrochemical Business Group.
On August 18,
2004, the subject
registered for a
conversion of its
status to a
public limited company
and its name
was changed to
CPPC PUBLIC COMPANY
LIMITED. It currently
employs approximately 420
staff.
The subject’s registered
address was initially
at 12th Floor
C.P. Tower, 313
Silom Rd., Silom, Bangrak,
Bangkok 10500.
In 2009, the
subject’s registered address
was relocated to 18th Floor,
C.P. Tower, 313
Silom Rd., Silom,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Prasert Poongkumarn :
Chairman |
|
Thai |
82 |
|
Mr. Meth Chiaravanont |
|
Thai |
60 |
|
Mr. Manoo Chiaravanont |
|
Thai |
64 |
|
Mr. Nophadol Chiaravanont |
|
Thai |
57 |
|
Mr. Supachai Chiaravanont |
|
Thai |
51 |
|
Mr. Kajorn Chiaravanont |
|
Thai |
51 |
|
Mr. Chatchaval
Chiaravanont |
|
Thai |
56 |
|
Mr. Narong Chiaravanont |
|
Thai |
53 |
|
Mr. Amrung Supsitwong |
|
Thai |
65 |
|
Mr. Chaipong Chainapaporn |
|
Thai |
65 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Prasert Poongkumarn is
the President & Chief Executive Officer.
He is Thai
nationality with the
age of 82
years old.
Mr. Amporn Pornvaraporn is
the General Manager.
He is Thai
nationality.
Mr. Poramin Pongkrasin is the
Factory Manager.
He is Thai
nationality.
Mr. Pera Pattiyathanee is
the Sales & Marketing Manager.
He is Thai
nationality.
Mr. Thanyapom Nawinwan
is the Business
& Products Development Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The
subject’s core business
is engaged in
manufacturing quality plastics,
categorized into 4 groups:
semi-finished plastics, finished
plastics and consumer
plastics, plastic packaging and
compound plastic granules.
The products are
used in various industries e.g. Christmas
trees, vacuum-forming
packaging, stationery, lamps, credit
cards, plastic ware for
food containers, decorative
materials and industrial
applications such as
cooling tower structures
and waste water
treatment facilities, as
well as manufacturing
of PVC cards
and paper cores.
MAJOR BRAND
“CPPC”
PRDUCTION CAPACITY
PVC films & sheets :
24,000 tons per
annum
Paper cores : 700
tons per annum
PURCHASE
70% of raw
materials such as
plastic resin, paper
pulp and chemicals
are purchased from
local suppliers, the
remaining 30% is
imported from Germany, Taiwan,
Belgium, Singapore, Republic
of China, India
and Japan.
MAJOR SUPPLIERS
|
Company Name |
Country |
Products |
|
|
|
|
|
Star Color Co., Ltd. |
Thailand |
: Chemical |
|
Vinythai Public Company Limited |
Thailand |
: Chemical |
|
Solvay S.A. |
Belgium |
: Plastic resin &
chemical |
|
Dow Chemical (Thailand)
Ltd. |
Thailand |
: Chemical |
|
IRPC Public Company
Limited |
Thailand |
: Plastic resin |
SALES [LOCAL]
80% of its
products is sold
locally to manufacturers, wholesalers
and end-users.
EXPORT [COUNTRIES]
20% of its
products is exported
to United States
of America, Hong
Kong,
Republic of China,
Malaysia, Singapore, Sweden,
France, Spain, Switzerland,
Germany, United Kingdom,
Indonesia, Australia, Korea,
Philippines, India, Taiwan,
Vietnam, Italy, Canada
and etc.
SUBSIDIARIES AND AFFILIATED
COMPANIES
CA Petrochemical Co.,
Ld.
Business Type : Manufacture
of PVC Pipe
Investment : 100%
of investment
C.P. Poly-Industry Co.,
Ltd.
Business Type : Manufacturer
and distributor of
jute bag and
plastic textiles
Investment : 100%
of investment
CNC International Co.,
Ltd.
Business Type : Manufacturer
and distributor of
synthetic fabric
Investment : 100%
of investment
CP Packaging Industry
Co., Ltd.
Business Type : Manufacturer
and distributor of
plastic container for
food industry
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
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Sales are by
cash or on
the credits term of
30-60 days.
Imports are by
L/C at sight
or T/T on
the credits term
of 30 days.
Exports are against
L/C at sight
or T/T on the
credits term of
30 days.
BANKING
Bangkok Bank Public
Company Limited
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok 10500]
[Trokchan Branch : 1564/8 Chan
Rd., Tungwatdon, Sathorn,
Bangkok 10120]
TMB Bank Public
Company Limited
[Head Office
: 393 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 420 staff. [office, sales
staff and factory workers]
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. It is
located in a prime commercial
area.
Factory
is located at
111/1 Moo 2, T.
Nikompattana, A. Nikompattana, Rayong
21180. Land Area
: 4,800,000 square
meters
Tel: [66] 38
897-103-8, 38 636-646
Fax: [66] 38
636-037, 38 897-113
COMMENT
The subject was
formed in 1988 as
a manufacturer and
distributor of Rigid PVC Film. Its
products have been
used in various
industries. Subject’s performance was
related to the
conditions of local
consumption. The operating
performance in the
previous year was slowdown
from industrial downturn.
FINANCIAL INFORMATION
The capital was registered
at Bht. 100 million,
divided into 10
million shares of
Bht. 10 each.
The capital was increased/decreased later
as followings:
Bht. 400
million on February
3, 1989
Bht. 600
million on May
12, 1989
Bht. 1,560
million on December
29, 1993
Bht. 2,080
million on June
28, 1995
Bht. 2,600
million on December
28, 1995
Bht. 3,120
million on December
6, 1996
[Decreased] : Bht.
780 million on
October 31, 2003
The
latest registered capital was
increased to Bht.
1,950 million, divided
into 195
million shares of
Bht. 10 each, with a
current capital paid-up
of Bht. 1,480
million.
MAIN SHAREHOLDERS : [as at
April 27, 2017]
at Bht. 1,480
million of capitalization
|
NAME |
HOLDING |
% |
|
Charoen Pokphand Group
Co., Ltd. Nationality: Thai Address : 313
C.P. Tower, Silom
Rd., Silom,
Bangrak, Bangkok 10500 |
37,573,496 |
25.39 |
|
Charoen Pokphand International Co., Ltd.
Nationality: Thai Address : 313
C.P. Tower, Silom
Rd., Silom,
Bangrak, Bangkok 10500 |
16,163,108 |
10.92 |
|
Mr. Sumeth Chiaravanont Nationality: Thai Address : 18/59
Soi Somkid, Lumpini,
Pathumwan, Bangkok |
8,711,055 |
5.89 |
|
Aquaculture Promotion Co., Ltd.
Nationality: Thai Address : 313
C.P. Tower, Silom
Rd., Silom,
Bangrak, Bangkok 10500 |
8,039,540 |
5.43 |
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Dhanin Chearavanont Nationality: Thai Address : 88
Moo 17, T.
Bangpleeyai, A. Bangplee,
Samutprakarn |
7,311,055 |
4.94 |
|
Mr. Charan Chiaravanont Nationality: Thai Address : 10
Soi 8, Vathanee
Rd., Kannayao,
Buengkum, Bangkok |
7,107,322 |
4.80 |
|
Charoen Pokphand Foods
Public Company Limited Nationality: Thai Address : 313
C.P. Tower, Silom
Rd., Silom,
Bangrak, Bangkok 10500 |
6,669,923 |
4.51 |
|
Mr. Montri Chiaravanont Nationality: Thai Address : 299-301
Songsawad Rd., Samphanthawong, Bangkok |
5,195,221 |
3.51 |
|
Others |
51,229,280 |
34.61 |
Total Shareholders : 118
Share Structure : [as at
April 27, 2017]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
116 |
146,492,960 |
98.98 |
|
Foreign |
2 |
1,507,040 |
1.02 |
|
Total |
118 |
148,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Jedsada Hangsapruk No. 3759
Financials
CPPC PUBLIC COMPANY
LIMITED
BALANCE SHEET [BAHT]
The 2017 financial
statement has not yet
been submitted to
Commercial Registration Department
during investigation.
The latest financial
figures published as at December
31, 2016, 2015
and 2014 were:
ASSETS
|
Current Assets |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Cash and Cash Equivalents |
1,689,362 |
7,652,487 |
70,258,276 |
|
Trade Account and
Other Receivable |
248,000,172 |
239,099,224 |
254,156,342 |
|
Short-term Lending |
2,268,558,211 |
1,992,114,044 |
1,569,512,997 |
|
Inventories |
264,194,746 |
246,378,846 |
230,366,755 |
|
Other Current Assets |
376,822,804 |
19,654,187 |
28,586,153 |
|
|
|
|
|
|
Total Current Assets
|
3,159,265,295 |
2,504,898,788 |
2,152,880,523 |
|
Investment in Subsidiaries |
2,141,474,125 |
2,106,558,075 |
2,106,558,075 |
|
Property, Plant and Equipment |
256,627,428 |
260,339,086 |
252,636,564 |
|
Real Estate for Investment |
203,622,452 |
208,472,067 |
266,121,345 |
|
Deferred Income Tax Assets |
43,992,972 |
42,546,627 |
39,548,391 |
|
Other Non-current Assets |
8,124,613 |
3,282,929 |
8,882,900 |
|
Total Assets |
5,813,106,885 |
5,126,097,572 |
4,826,627,798 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Bank Overdraft and Short-term Loan from Financial Institution |
271,857,976 |
475,976,000 |
521,421,228 |
|
Trade Account and
Other Payable |
196,504,066 |
206,473,098 |
189,805,754 |
|
Short-term Loans |
281,211,264 |
110,592,232 |
79,703,625 |
|
Accrued Income Tax
|
28,689,531 |
28,076,089 |
6,565,336 |
|
Other Current Liabilities |
38,912,902 |
36,655,525 |
43,998,771 |
|
|
|
|
|
|
Total Current Liabilities |
817,175,739 |
857,772,944 |
841,494,714 |
|
Employee Benefits Obligation |
55,031,129 |
50,339,560 |
37,825,829 |
|
|
|
|
|
|
Total Liabilities |
872,206,868 |
908,112,504 |
879,320,543 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share Capital :
Baht. 10 par value authorized and
issued share capital
195,000,000 shares |
1,950,000,000 |
1,950,000,000 |
1,950,000,000 |
|
|
|
|
|
|
Capital Paid |
1,480,000,000 |
1,480,000,000 |
1,480,000,000 |
|
Surplus on Share Capital |
388,665,888 |
388,665,888 |
388,665,888 |
|
Retained Earnings: Appropriated for Statutory Reserve |
148,000,000 |
148,000,000 |
148,000,000 |
|
Unappropriated |
2,924,234,129 |
2,201,319,180 |
1,930,641,367 |
|
Total Shareholders' Equity |
4,940,900,017 |
4,217,985,068 |
3,947,307,255 |
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
5,813,106,885 |
5,,126,097,572 |
4,826,627,798 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Sales or Service
Income |
1,460,243,437 |
1,395,505,413 |
1,504,445,548 |
|
Dividend Income |
- |
- |
175,254,585 |
|
Other Income |
951,020,337 |
536,569,851 |
136,199,390 |
|
Total Revenues |
2,411,263,774 |
1,932,075,264 |
1,815,899,523 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold or Service
|
1,195,192,443 |
1,171,548,223 |
1,261,521,393 |
|
Selling Expenses |
46,627,065 |
44,427,012 |
50,059,475 |
|
Administrative Expenses |
146,185,603 |
151,654,153 |
119,173,591 |
|
Cost of Financial |
17,683,743 |
26,955,877 |
- |
|
Total Expenses |
1,405,688,854 |
1,394,585,265 |
1,430,754,459 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost and Income Tax |
1,005,574,920 |
537,489,999 |
385,145,064 |
|
Financial Cost |
- |
- |
[32,060,185] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax |
1,005,574,920 |
537,489,999 |
353,084,879 |
|
Income Tax |
[53,259,971] |
[44,812,186] |
[34,467,784] |
|
Net Profit / [Loss] |
952,314,949 |
492,677,813 |
318,617,095 |
CPPC PUBLIC
COMPANY LIMITED
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
3.87 |
2.92 |
2.56 |
|
QUICK RATIO |
TIMES |
3.08 |
2.61 |
2.25 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.69 |
5.36 |
5.95 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.25 |
0.27 |
0.31 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
80.68 |
76.76 |
66.65 |
|
INVENTORY TURNOVER |
TIMES |
4.52 |
4.76 |
5.48 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
61.99 |
62.54 |
61.66 |
|
RECEIVABLES TURNOVER |
TIMES |
5.89 |
5.84 |
5.92 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
60.01 |
64.33 |
54.92 |
|
CASH CONVERSION CYCLE |
DAYS |
82.66 |
74.97 |
73.40 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
81.85 |
83.95 |
83.85 |
|
SELLING & ADMINISTRATION |
% |
13.20 |
14.05 |
11.25 |
|
INTEREST |
% |
1.21 |
1.93 |
2.13 |
|
GROSS PROFIT MARGIN |
% |
83.28 |
54.50 |
36.85 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
68.86 |
38.52 |
25.60 |
|
NET PROFIT MARGIN |
% |
65.22 |
35.30 |
21.18 |
|
RETURN ON EQUITY |
% |
19.27 |
11.68 |
8.07 |
|
RETURN ON ASSET |
% |
16.38 |
9.61 |
6.60 |
|
EARNING PER SHARE |
BAHT |
6.43 |
3.33 |
2.15 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.15 |
0.18 |
0.18 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.18 |
0.22 |
0.22 |
|
TIME INTEREST EARNED |
TIMES |
56.86 |
19.94 |
12.01 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
4.64 |
(7.24) |
|
|
OPERATING PROFIT |
% |
87.09 |
39.56 |
|
|
NET PROFIT |
% |
93.29 |
54.63 |
|
|
FIXED ASSETS |
% |
(1.43) |
3.05 |
|
|
TOTAL ASSETS |
% |
13.40 |
6.20 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 4.64%. Turnover has increased from THB
1,395,505,413.00 in 2015 to THB 1,460,243,437.00 in 2016. While net profit has
increased from THB 492,677,813.00 in 2015 to THB 952,314,949.00 in 2016. And
total assets has increased from THB 5,126,097,572.00 in 2015 to THB
5,813,106,885.00 in 2016.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
83.28 |
Impressive |
Industrial Average |
- |
|
Net Profit Margin |
65.22 |
Impressive |
Industrial Average |
7.80 |
|
Return on Assets |
16.38 |
Impressive |
Industrial Average |
3.97 |
|
Return on Equity |
19.27 |
Impressive |
Industrial Average |
5.80 |
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 83.28%. 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 65.22%,
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
16.38%, 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 19.27%, 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 Downtrend
Return on Equity Downtrend
LIQUIDITY :
IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
3.87 |
Impressive |
Industrial Average |
2.16 |
|
Quick Ratio |
3.08 |
|
|
|
|
Cash Conversion Cycle |
82.66 |
|
|
|
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 3.87 times in 2016, increase from 2.92 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 3.08 times in 2016,
increase from 2.61 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 83 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.15 |
Impressive |
Industrial Average |
0.31 |
|
Debt to Equity Ratio |
0.18 |
Impressive |
Industrial Average |
0.45 |
|
Times Interest Earned |
56.86 |
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 56.87 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 0.15 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 |
5.69 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.25 |
Acceptable |
Industrial Average |
0.51 |
|
Inventory Conversion Period |
80.68 |
|
|
|
|
Inventory Turnover |
4.52 |
Impressive |
Industrial Average |
3.12 |
|
Receivables Conversion Period |
61.99 |
|
|
|
|
Receivables Turnover |
5.89 |
Impressive |
Industrial Average |
1.97 |
|
Payables Conversion Period |
60.01 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.89 and 5.84 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 77 days at the
end of 2015 to 81 days at the end of 2016. This represents a negative trend.
And Inventory turnover has decreased from 4.76 times in year 2015 to 4.52 times
in year 2016.
The company's Total Asset Turnover is calculated as 0.25 times and 0.27
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 Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 67.38 |
|
|
1 |
INR 91.39 |
|
Euro |
1 |
INR 79.89 |
|
Thai baht |
1 |
INR 2.10 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
SYL |
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.