MIRA
INFORM REPORT
|
Report Date : |
26.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
THAI
TAFFETA CO., LTD. |
|
|
|
|
Registered Office : |
36th Floor, Ocean Tower 2, 75/96-99 Soi Sukhumvit 19 [Wattana], Asoke Road, Klongtoey Nua,Wattana, Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.05.2012 |
|
|
|
|
Date of Incorporation : |
25.06.1987 |
|
|
|
|
Com. Reg. No.: |
0105530030113 [Former : 3007/2530] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, exporter and
distributor of fabric and yarn |
|
|
|
|
No. of Employees : |
750 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but Correct |
|
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 – March 31st 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Thailand ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise economy,
generally pro-investment policies, and strong export industries, Thailand
achieved steady growth due largely to industrial and agriculture exports -
mostly electronics, agricultural commodities, automobiles and parts, and
processed foods. Thailand is trying to maintain growth by encouraging domestic
consumption and public investment to offset weak exports in 2012. Unemployment,
at less than 1% of the labor force, stands as one of the lowest levels in the
world, which puts upward pressure on wages in some industries. Thailand also
attracts nearly 2.5 million migrant workers from neighboring countries. The
Thai government is implementing a nation-wide 300 baht ($10) per day minimum
wage policy and deploying new tax reforms designed to lower rates on
middle-income earners. The Thai economy has weathered internal and external
economic shocks in recent years. The global economic severely cut Thailand's
exports, with most sectors experiencing double-digit drops. In 2009, the
economy contracted 2.3%. However, in 2010, Thailand's economy expanded 7.8%,
its fastest pace since 1995, as exports rebounded. In late 2011 growth was
interrupted by historic flooding in the industrial areas in Bangkok and its
five surrounding provinces, crippling the manufacturing sector. Industry
recovered from the second quarter of 2012 onward with GDP growth at 5.5% in
2012. The government has approved flood mitigation projects worth $11.7 billion,
which were started in 2012, to prevent similar economic damage, and an
additional $75 billion for infrastructure over the next seven years with a plan
to start in 2013.
|
Source : CIA |
Company name
THAI TAFFETA CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 36th FLOOR,
OCEAN TOWER 2,
75/96-99 SOI
SUKHUMVIT 19 [WATTANA],
ASOKE ROAD,
KLONGTOEY NUA,
WATTANA, BANGKOK
10110, THAILAND
TELEPHONE : [66] 2260-5186-8,
2661-6580-6
FAX
: [66] 2258-4375,
2661-6138
E-MAIL
ADDRESS : thaitaffetaco@firmmail.thaitextile.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1987
REGISTRATION
NO. : 0105530030113 [Former : 3007/2530]
TAX
ID NO. : 3101453430
CAPITAL REGISTERED : BHT. 1,488,000,000
CAPITAL PAID-UP : BHT.
1,488,000,000
SHAREHOLDER’S PROPORTION : THAI :
94.28%
FOREIGN
: 5.72%
FISCAL YEAR CLOSING DATE : MAY
31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SOMSAK CHAIWILAI, THAI
PRESIDENT
& FACTORY
MANAGER
NO.
OF STAFF : 750
LINES
OF BUSINESS : FABRIC AND
YARN
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was
established on June
25, 1987 as a
private limited company
under the name
style THAI TAFFETA
CO., LTD., by
Thai and Taiwanese groups,
with the business
objective to manufacture textile
and yarn for both
domestic and oversea
markets. It currently
employs approximate 750
staff.
The company received
a quality system
ISO 9002 certification
from The TUV
CERT Certification Body of
Rhenisch-Westfälischer TUV e.V., in
1999.
The subject’s registered
address is 36th Floor,
Ocean Tower 2, 75/96-99
Soi Sukhumvit 19 [Wattana],
Asoke Road, Klongtoey
Nua, Wattana, Bangkok
10110, and this
is the company’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Metha Chaiwilai |
[x] |
Thai |
77 |
|
Mrs. Rachit Chaiwilai |
[*] |
Thai |
73 |
|
Ms. Srichan Chaiwilai |
[--] |
Thai |
45 |
|
Mr. Somsak Chaiwilai |
[+] [--] |
Thai |
46 |
|
Mr. Surin Napapreuksachart |
[+] |
Thai |
82 |
|
Mr. Cheng Bor
Chau |
[-] |
Chinese |
71 |
|
Mr. Supoj Chaiwilai |
[*] |
Thai |
39 |
|
Ms. Siriporn Chaiwilai |
|
Thai |
38 |
|
Mrs. Kritika Chaiwilai |
[-] [--] |
Thai |
46 |
AUTHORIZED PERSON
- The mentioned director
[x] can sign
on behalf of
the subject with
company’s affixed.
- Both of
the mentioned directors [+] can
jointly sign on
behalf of the
subject with company’s affixed.
- Both of
the mentioned directors [-]
can jointly sign
on behalf of
the subject with
company’s affixed.
- Both of
the mentioned directors [*]
can jointly sign
on behalf of
the subject with
company’s affixed.
- Anyone of
the mentioned directors [--]
can sign on
behalf of the
subject with company’s affixed.
MANAGEMENT
Mr. Somsak Chaiwilai
is the President
and Factory Manager.
He is Thai
nationality with the
age of 46
years old.
Ms. Varaporn Leepokanond is
the Marketing Manager.
She is Thai
nationality.
Ms. Sirirak Auttarak is
the Personnel and
Administration Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a producer
wide range of
quality synthetic fabrics
and yarn in
large volumes through
the utilisation of
advance water-jet looms.
The main products
are as the
followings:
- Nylon Filament
Yarn
- Yarn Bright
& Semi-Bright [POY,
FDY, DTY &
Air Texture]
- Nylon &
Polyester Fabric
- Nylon Plain,
Oxford, Twill, Satin,
Taslon, Pongee, Pigment
- All kind
of Coating &
Finishing PU, Silver,
Milky and etc.
- Breathable, Hivisibility
- EN471, Teflon
and etc.
- Film Laminate
The products are
used in the
garment, PVC laminating,
PU coating and
rubber backing industries,
to make a
wide diversity of
consumer goods, such as sportswear,
casual wear, shoes, artificial
flowers, camping equipment,
umbrellas and etc.
PRODUCTION [as of
July 4, 2011]
Weaving capacity : 114,400,000
yards/year
Dyeing & finishing capacity : 186,000,000
yards/year
Printing capacity : 15,000,000
yards/year
Nylon filament yarn : 14,854 tons/year
Nylon texture yarn : 4,485 tons/year
IMPORT [COUNTRIES]
40% of raw
chemical mainly caprolactam,
yarn and nylon
are imported from Australia, Japan,
Taiwan, Germany, Switzerland,
Republic of China
and Belgium.
MAJOR SUPPLIERS
|
Name |
Country |
|
|
|
|
Dystar Thai Ltd. |
Thailand |
|
Clariant Chemicals Ltd. |
Thailand |
|
CIBA Specialty Chemical
[Thailand] Ltd. |
Thailand |
|
BASF [Thai] Ltd. |
Thailand |
|
Thai Caprolactum Public
Company Limited |
Thailand |
|
The Siam Fine
Chemical Co., Ltd. |
Thailand |
SALES [LOCAL]
40% of its products
is sold locally
to manufacturers, wholesalers,
manufacturers and end-users.
EXPORT [COUNTRY]
60% of the
products is exported
to United Kingdom,
Hong Kong, Belgium, Spain,
India, Italy, Republic of
China, Korea, Vietnam,
United Arab Emirate, Brazil,
Sri Lanka, Bangladesh, Japan,
Laos, U.S.A., Canada,
Taiwan, Indonesia, Iran
and other Middle East
Countries.
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
for the past
two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60-90 days.
Local bills
are paid on
the credits term
of 30-60-90 days.
Imports are
by T/T on the
credit term of 90 days.
Exports are
against T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom
Road, Silom, Bangrak,
Bangkok]
Bank of Ayudhya
Public Co., Ltd.
[Samyek Branch,
Charoenkrung Rd., Samphantawong, Bangkok]
EMPLOYMENT
The subject employs
approximately 750 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is
rented for operating
office at the
heading address. Premise
is located in
a prime commercial
area.
The factory for
yarn, fabric, dyeing,
finishing, printing and
utility covers an
area of 750
rai [approximately 300 acres] on
13 Highway No.
3191 Map-Ta-Phut, Hueypong,
Muang, Rayong 21150.
Tel: [66] 38
681-601-6, Fax: [66] 38 681-609.
COMMENT
Subject was formed
in 1987 as
a manufacturer, distributor
and exporter of
fabric and yarns.
Its products are
for domestic consumption
and export markets. Subject had
strong business growth
in the past several years
due to strong consumption
from industrial users. Subject’s business
is solid and
expanding steadily.
FINANCIAL INFORMATION
The capital was
registered at Bht.
50,000,000 divided into
5,000,000 shares of
Bht. 10 each.
The capital was
increased later as
the followings:
Bht. 300,000,000 on
March 15, 1988
Bht. 930,000,000 on
August 21, 1990
Bht. 1,255,500,000
on August 2,
1995
Bht. 1,488,000,000
on November 15,
2000
The latest registered
capital was increased
to Bht. 1,488,000,000 divided into 148,800,000 shares
of Bht. 10
each with fully
paid.
MAIN SHAREHOLDERS : [as at
September 25, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Rachit Chaiwilai Nationality: Thai Address : 9/3-4
Moo 5, Kannayao,
Buengkum, Bangkok |
44,456,020 |
29.88 |
|
Mr. Metha Chaiwilai Nationality: Thai Address : 5/31
Rama 4 Rd.,
Thungmahamek, Sathorn, Bangkok |
34,095,680 |
22.91 |
|
Mr. Somsak Chaiwilai Nationality: Thai Address : 33/330
Moo 1, Bangkaew,
Bangplee,
Samutprakarn |
27,952,000 |
18.78 |
|
Mr. Supoj Chaiwilai Nationality: Thai Address : 1642
Thanurat Rd., Thungwatdon,
Yannawa, Bangkok |
18,000,000 |
12.10 |
|
Mr. Cheng Bor
Chau Nationality: Chinese Address : Taipei,
Taiwan |
5,000,000 |
3.36 |
|
Ms. Srichan Chaiwilai Nationality: Thai Address : 25
Soi Sapankhu, Thungmahamek,
Sathorn, Bangkok |
3,500,000 |
2.35 |
|
Others |
15,796,300 |
10.62 |
Total Shareholders : 19
Share Structure [as
at September 25,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
13 |
140,288,020 |
94.28 |
|
Foreign |
6 |
8,511,980 |
5.72 |
|
Total |
19 |
148,800,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC ACCOUNTANT NO. :
Mr. Vithaya Boonsai
No. 5720
BALANCE SHEET [BAHT]
The latest financial figures published
as at May
31, 2012, 2011
& 2010 were:
ASSETS
|
Current
Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
231,691,052.82 |
564,098,793.80 |
124,997,206.02 |
|
Short-term Investment |
477,318,964.64 |
20,000,000.00 |
-
|
|
Trade Accounts
& Notes Receivable
|
278,735,569.12 |
437,957,043.82 |
506,507,736.55 |
|
Inventories |
538,170,226.07 |
549,092,029.39 |
479,334,899.67 |
|
Revenue Department
Receivable |
9,725,286.59 |
10,067,578.56 |
30,795,347.45 |
|
Other Current
Assets |
51,824,149.23 |
9,618,247.02 |
13,349,759.40 |
|
|
|
|
|
|
Total Current
Assets |
1,587,465,248.47 |
1,590,833,692.59 |
1,154,984,949.09 |
|
|
|
|
|
|
Other Long-term
Investment |
55,000,000.00 |
55,000,000.00 |
5,000,000.00 |
|
Cash at
Bank pledged as
a Collateral |
1,446,336.78 |
1,446,336.78 |
- |
|
Long-term Investment
in Associated Company -
at Cost |
9,018,960.00 |
9,018,960.00 |
10,010,800.00 |
|
Long-term Investment
in Other Company |
1,190,000.00 |
1,190,000.00 |
1,190,000.00 |
|
Fixed Assets |
547,819,196.95 |
626,662,759.27 |
772,380,881.96 |
|
Non-operating Land |
- |
9,231,250.00 |
9,231,250.00 |
|
Real Estate
for Investment |
9,231,250.00 |
- |
- |
|
Other Non-current
Assets |
1,835,003.11 |
1,652,239.72 |
1,168,082.00 |
|
Total Assets |
2,213,005,995.31 |
2,295,035,238.36 |
1,953,965,963.05 |
LIABILITIES & SHAREHOLDERS' EQUITY
[BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft
& Short-term Loan from Bank |
150,750,454.68 |
185,708,328.02 |
109,117,073.85 |
|
Trade Accounts & Notes
Payable |
1,175,961,620.21 |
1,160,103,113.63 |
770,026,786.81 |
|
Short-term Loan
from Related Company |
- |
- |
23,797,329.53 |
|
Short-term Loan
from Director |
1,000,000.00 |
1,000,000.00 |
42,622,912.62 |
|
Advance Income
from Goods |
36,502,005.26 |
26,824,628.07 |
32,027,280.99 |
|
Accrued Expenses |
20,238,257.09 |
26,170,662.27 |
33,326,995.65 |
|
Other Current
Liabilities |
4,609,357.50 |
4,122,340.50 |
4,123,699.46 |
|
|
|
|
|
|
Total Current Liabilities
|
1,389,061,694.74 |
1,403,929,072.49 |
1,015,042,078.91 |
|
Estimated Liabilities Repairs |
5,260,815.27 |
- |
6,802,768.00 |
|
Total Liabilities |
1,394,322,510.01 |
1,403,929,072.49 |
1,021,844,846.91 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized,
issued and fully
paid
share capital 148,800,000
shares |
1,488,000,000.00 |
1,488,000,000.00 |
1,488,000,000.00 |
|
|
|
|
|
|
Capital Paid |
1,488,000,000.00 |
1,488,000,000.00 |
1,488,000,000.00 |
|
Unappropriated [Deficit]
|
[669,316,514.70] |
[596,893,834.13] |
[555,878,883.86] |
|
Total Shareholders'
Equity |
818,683,485.30 |
891,106,165.87 |
932,121,116.14 |
|
Total Liabilities
& Shareholders' Equity |
2,213,005,995.31 |
2,295,035,238.36 |
1,953,965,963.05 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
2,385,815,130.91 |
2,613,298,485.33 |
1,915,061,905.49 |
|
Gain on
Exchange Rate |
- |
56,862,837.72 |
26,389,719.92 |
|
Other Income |
62,499,711.01 |
28,417,023.34 |
10,614,567.66 |
|
Total Revenues |
2,448,314,841.92 |
2,698,578,346.39 |
1,952,066,193.07 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods Sold
|
2,307,785,574.21 |
2,537,503,739.17 |
1,872,274,038.03 |
|
Selling Expenses |
90,930,524.16 |
97,579,143.68 |
84,069,940.48 |
|
Administrative Expenses |
97,753,112.78 |
101,509,813.18 |
92,135,406.59 |
|
Loss on
Exchange Rate |
20,302,538.53 |
- |
- |
|
Total Expenses |
2,516,771,749.68 |
2,736,592,696.03 |
2,084,479,385.10 |
|
|
|
|
|
|
Profit/[Loss] before Financial Cost |
[68,456,907.76] |
[38,014,349.64] |
[96,413,192.03] |
|
Financial Cost |
[3,965,772.81] |
[3,000,600.63] |
[4,139,893.10] |
|
|
|
|
|
|
Net Profit / [Loss] |
[72,422,680.57] |
[41,014,950.27] |
[100,553,085.13] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.14 |
1.13 |
1.14 |
|
QUICK RATIO |
TIMES |
0.71 |
0.73 |
0.62 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.36 |
4.17 |
2.48 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.08 |
1.14 |
0.98 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
85.12 |
78.98 |
93.45 |
|
INVENTORY TURNOVER |
TIMES |
4.29 |
4.62 |
3.91 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
42.64 |
61.17 |
96.54 |
|
RECEIVABLES TURNOVER |
TIMES |
8.56 |
5.97 |
3.78 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
185.99 |
166.87 |
150.12 |
|
CASH CONVERSION CYCLE |
DAYS |
(58.23) |
(26.72) |
39.87 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
96.73 |
97.10 |
97.77 |
|
SELLING & ADMINISTRATION |
% |
7.91 |
7.62 |
9.20 |
|
INTEREST |
% |
0.17 |
0.11 |
0.22 |
|
GROSS PROFIT MARGIN |
% |
5.89 |
6.16 |
4.17 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(2.87) |
(1.45) |
(6.91) |
|
NET PROFIT MARGIN |
% |
(3.04) |
(1.57) |
(5.25) |
|
RETURN ON EQUITY |
% |
(8.85) |
(4.60) |
(10.79) |
|
RETURN ON ASSET |
% |
(3.27) |
(1.79) |
(5.15) |
|
EARNING PER SHARE |
BAHT |
(0.49) |
(0.28) |
(0.68) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.63 |
0.61 |
0.52 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.70 |
1.58 |
1.10 |
|
TIME INTEREST EARNED |
TIMES |
(17.26) |
(12.67) |
(31.98) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(8.70) |
36.46 |
|
|
OPERATING PROFIT |
% |
80.08 |
(71.29) |
|
|
NET PROFIT |
% |
(76.58) |
59.21 |
|
|
FIXED ASSETS |
% |
(12.58) |
(18.87) |
|
|
TOTAL ASSETS |
% |
(3.57) |
17.46 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -8.7%. Turnover has decreased from THB
2,613,298,485.33 in 2011 to THB 2,385,815,130.91 in 2012. While net profit has
decreased from THB -41,014,950.27 in 2011 to THB -72,422,680.57 in 2012. And
total assets has decreased from THB 2,295,035,238.36 in 2011 to THB
2,213,005,995.31 in 2012.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
5.89 |
Acceptable |
Industrial Average |
10.79 |
|
Net Profit Margin |
(3.04) |
Deteriorated |
Industrial Average |
0.93 |
|
Return on Assets |
(3.27) |
Deteriorated |
Industrial Average |
0.96 |
|
Return on Equity |
(8.85) |
Deteriorated |
Industrial Average |
2.67 |
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 5.89%. 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 -3.04%.
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 -3.27%.
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 -8.85%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.14 |
Satisfactory |
Industrial
Average |
1.50 |
|
Quick Ratio |
0.71 |
|
|
|
|
Cash Conversion Cycle |
(58.23) |
|
|
|
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 1.14 times in 2012, increased from 1.13 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 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 0.71 times in 2012,
decreased from 0.73 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 -59 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.63 |
Acceptable |
Industrial
Average |
0.56 |
|
Debt to Equity Ratio |
1.70 |
Risky |
Industrial
Average |
1.60 |
|
Times Interest Earned |
(17.26) |
Risky |
Industrial
Average |
1.30 |
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 -17.27 lower than 1, so the company is not generating
enough cash from EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.63 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 Uptrend
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.36 |
Impressive |
Industrial
Average |
1.97 |
|
Total Assets Turnover |
1.08 |
Impressive |
Industrial
Average |
0.96 |
|
Inventory Conversion Period |
85.12 |
|
|
|
|
Inventory Turnover |
4.29 |
Impressive |
Industrial
Average |
2.73 |
|
Receivables Conversion Period |
42.64 |
|
|
|
|
Receivables Turnover |
8.56 |
Impressive |
Industrial
Average |
3.59 |
|
Payables Conversion Period |
185.99 |
|
|
|
The company's Account Receivable Ratio is calculated as 8.56 and 5.97 in
2012 and 2011 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 2012
increased from 2011. 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 79 days at the
end of 2011 to 85 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 4.62 times in year 2011 to 4.29 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.08 times and 1.14 times
in 2012 and 2011 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 Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.17 |
|
UK Pound |
1 |
Rs.82.99 |
|
Euro |
1 |
Rs.70.62 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
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 and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.