MIRA
INFORM REPORT
|
Report Date : |
09.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
KANGWAL TEXTILE CO., LTD. |
|
|
|
|
Registered Office : |
1426/18-20 Soi Yosse, Krungkasem
Road, Pomprab, Bangkok 10100, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
06.05.1987 |
|
|
|
|
Com. Reg. No.: |
0705530000065 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is a
textile weaving and
yarn spinning factory,
mainly are TR &
TC [65/35] acrylic, cotton
and rayon, through
5 spinning mills
and 1 weaving
mill for its
productions |
|
|
|
|
No. of Employees : |
700 |
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 |
|
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 crisis 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 and address
KANGWAL TEXTILE
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 1426/18-20 SOI
YOSSE, KRUNGKASEM ROAD,
POMPRAB, BANGKOK
10100, THAILAND
TELEPHONE : [66] 2220-7000
FAX : [66] 2226-3046,
224-3388
E-MAIL
ADDRESS : sales@kangwal.co.th
REGISTRATION
ADDRESS : 144
MOO 4, T.
BANKHONG, A. PHOTHARAM
RATCHABURI 70120
ESTABLISHED
: 1987
REGISTRATION
NO. : 0705530000065 [Former : ROR
BOR. 90]
TAX
ID NO. : 3731001209
CAPITAL REGISTERED : BHT. 1,200,000,000
CAPITAL PAID-UP : BHT.
1,200,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
NIPHAN WONGPHANLERT, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 700
LINES
OF BUSINESS : TEXTILE &
YARN SPINNING
MANUFACTURER, EXPORTER
& DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
LOW PERFORMANCE
HISTORY
The subject was
established on May
6, 1987 as a private
limited company under
the name style KANGWAL
TEXTILE CO., LTD., by
Thai Group, Wongphanlert
family, in order
to manufacture textile
and yarn for
both domestic and
international markets.
The subject also
achieved ISO 9002
Certification. It currently
employs approximately 700
staff.
The subject’s registered
address is 144
Moo 4, T. Bankong,
A. Photaram, Ratchaburi 70120,
while the business
address is located
at 1426/18-20 Soi
Yosse, Krungkasem Rd.,
Pomprab, Bangkok 10100.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kangwal Wongphanlert |
|
Thai |
80 |
|
Mrs. Valapa Wongphanlert |
|
Thai |
74 |
|
Mr. Niphan Wongphanlert |
|
Thai |
51 |
|
Mr. Roongruang Wongphanlert |
|
Thai |
49 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Niphan Wongphanlert is
the Managing Director.
He is Thai
nationality with the age of 51
years old.
Mr. Roongruang Wongphanlert is
the Deputy Managing
Director.
He is Thai
nationality with the
age of 49 years
old.
Ms. Nualphan Wongphanlert is
the Deputy Managing
Director.
She is Thai
nationality.
Mr. Bancha Wongphanlert is
the Purchasing Director.
He is Thai
nationality.
Mr. Vorakom Jittasotorn
is the Marketing
Manager.
He is Thai
nationality.
Mr. Vithya Dilokrat-ampon is
the Account Manager.
He is Thai
nationality.
Mr. K.V. Patil
is the G.M. [Marketing].
He is Indian
nationality.
Mr. Balasubramanian Govindarajulu is
the G.M. [Works].
He is Indian
nationality.
Mr. Somkiat Rungruang is
the Sales & Planning
Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
a textile weaving
and yarn spinning
factory, mainly are TR
& TC [65/35] acrylic,
cotton and rayon,
through 5 spinning
mills and 1
weaving mill for
its productions.
PRODUCTIONS
Textile weaving service : 2.5
million yards/month
Yarn spinning service : 5.5
million pounds/month
PURCHASE
80% of raw
materials is purchased
from local suppliers,
and the rest
is imported from
Republic of China,
India, Taiwan, Australia
and Germany.
MAJOR SUPPLIERS
Kangwal Polyester Co.,
Ltd. : Thailand
SALES [LOCAL]
80% of its
products is sold
locally to manufacturers.
EXPORT [COUNTRIES]
20% of its
products is exported
to Australia, United States
of America, India, Japan,
Hong Kong, Republic of China, Vietnam, Argentina,
European and Middle East
countries.
MAJOR CUSTOMER
Promtex Yarns Inc. : U.S.A.
SUBSIDIARIES & AFFILIATED
COMPANIES
|
Name |
Country |
Business Type |
|
Kangwal Weaving Factory,
Ltd. |
Thailand |
Textile factory |
|
Kangwal Polyester Co.,
Ltd. |
Thailand |
Polyester yarn
factory |
|
Kangwal Spinning Co.,
Ltd. |
Thailand |
Textile factory |
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 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight
& T/T.
BANKING
The Siam Commercial
Public Co., Ltd.
Bank of Ayudhya
Public Co., Ltd.
Kasikornbank Public Co.,
Ltd.
Bangkok Bank Public
Co., Ltd.
Krung Thai Bank
Public Co., Ltd.
EMPLOYMENT
The subject employs
approximately 700 staff
[office staff and
factory workers].
LOCATION DETAILS
The
premise is owned
for operating office
at the heading
address. Premise is
located in commercial/residential area.
Factory is located
on approximately 320,000
square meters of land
at 144 Moo
4, T. Bangkhong,
A. Photharam, Ratchaburi
70120.
Tel: [66] 32
231-994-6 Fax: [66]
32 231-496.
COMMENT
The subject operates
as a yarn spinning
and textile weaving
plant. The plant is
operated at high efficiency and
good quality which is
comparable to top class mills in world markets.
The subject’s business is vibrant
in textile industry. The
industry has shown steady trend
from strong export markets.
FINANCIAL INFORMATION
The capital was
registered at Bht.
80 million, divided
into 80,000 shares
of Bht. 1,000
each.
The capital was
increased and decreased
later as followings:
Bht. 150
million on November
4, 1987
Bht. 350
million on March
22, 1990
Bht. 700
million on September
8, 1993
Bht. 1,400 million
on January 24,
2000
Bht. 1,100 million
on December 27,
2001 [Decreased]
On December 28,
2001, the capital
was increased to
Bht. 1,200 million,
divided into 1,200,000
shares of Bht.
1,000 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE: [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
Mr. Kangwal Wongphanlert Nationality: Thai Address : 1426-1427 Phopairoj Rd., Photaram, Ratchaburi |
345,000 |
28.75 |
|
Mrs. Valapa Wongphanlert Nationality: Thai Address : 678/16
Bamrungmuang Rd., Wat Thepsirin,
Pomprab, Bangkok |
345,000 |
28.75 |
|
Mr. Niphan Wongphanlert Nationality: Thai Address : 678/16
Bamrungmuang Rd., Wat Thepsirin,
Pomprab, Bangkok |
180,000 |
15.00 |
|
Mr. Roongruang Wongphanlert Nationality: Thai Address : 678/16
Bamrungmuang Rd., Wat Thepsirin,
Pomprab, Bangkok |
180,000 |
15.00 |
|
Mr. Bancha Wongphanlert Nationality: Thai Address : 678/16
Bamrungmuang Rd., Wat Thepsirin,
Pomprab, Bangkok |
30,000 |
2.50 |
|
Mrs. Nualphan Wongphanlert Nationality: Thai Address : 678/16
Bamrungmuang Rd., Wat Thepsirin,
Pomprab, Bangkok |
30,000 |
2.50 |
|
Ms. Thanya Wongphanlert Nationality: Thai Address : 678/16
Bamrungmuang Rd., Wat Thepsirin,
Pomprab, Bangkok |
30,000 |
2.50 |
|
Ms. Panida Wongphanlert Nationality: Thai Address : 678/16
Bamrungmuang Rd., Wat Thepsirin,
Pomprab, Bangkok |
30,000 |
2.50 |
|
Ms. Vorawan Wongphanlert Nationality: Thai Address : 678/16
Bamrungmuang Rd., Wat
Thepsirin, Pomprab, Bangkok |
30,000 |
2.50 |
Total Shareholders : 9
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
9 |
1,200,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
9 |
1,200,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Cherdchay Tortrakul No.
0468
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
27,580,928.04 |
7,766,365.56 |
7,216,132.92 |
|
Trade Accounts and
Other Receivable |
285,056,103.20 |
269,794,687.57 |
243,037,484.03 |
|
Inventories |
1,399,477,613.41 |
1,388,877,005.01 |
942,644,090.44 |
|
Other Current Assets
|
98,260,939.73 |
277,785,516.36 |
122,582,691.99 |
|
|
|
|
|
|
Total Current Assets
|
1,810,375,584.38 |
1,944,223,574.50 |
1,315,480,399.38 |
|
Other Long-term Investment |
142,000,000.00 |
142,000,000.00 |
142,000,000.00 |
|
Fixed Assets |
1,693,730,198.97 |
1,759,400,634.16 |
1,736,588,496.23 |
|
Total Assets |
3,646,105,783.35 |
3,845,624,208.66 |
3,194,068,895.61 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
1,614,076,930.27 |
1,845,575,578.86 |
1,353,516,587.13 |
|
Trade Accounts and
Other Payable |
631,086,903.70 |
372,847,600.57 |
396,062,806.22 |
|
Current Portion of
Long-term Liabilities |
56,016,000.00 |
66,680,000.00 |
40,008,000.00 |
|
Accrued Income Tax |
- |
5,639,206.89 |
6,312,708.64 |
|
Other Current Liabilities |
345,577.49 |
262,070.33 |
415,294.66 |
|
|
|
|
|
|
Total Current Liabilities |
2,301,525,411.46 |
2,291,004,456.65 |
1,796,315,396.65 |
|
Long-term Loan from Person or Others |
177,290,000.00 |
233,306,000.00 |
99,986,000.00 |
|
Employee Benefits Obligation |
16,654,794.41 |
12,693,630.21 |
- |
|
Total Liabilities |
2,495,470,205.87 |
2,537,004,086.86 |
1,896,301,396.65 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 1,200,000 shares |
1,200,000,000.00 |
1,200,000,000.00 |
1,200,000,000.00 |
|
|
|
|
|
|
Capital Paid |
1,200,000,000.00 |
1,200,000,000.00 |
1,200,000,000.00 |
|
Retained Earning Unappropriated |
[49,364,422.52] |
108,620,121.80 |
97,767,498.96 |
|
Total Shareholders' Equity |
1,150,635,577.48 |
1,308,620,121.80 |
1,297,767,498.96 |
|
Total Liabilities &
Shareholders' Equity |
3,646,105,783.35 |
3,845,624,208.66 |
3,194,068,895.61 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
4,128,630,856.85 |
3,993,775,208.57 |
3,487,476,251.98 |
|
Other Income |
40,216,224.45 |
5,485,581.45 |
48,184,647.02 |
|
Total Revenues |
4,168,847,081.30 |
3,999,260,790.02 |
3,535,660,899.00 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
4,043,514,942.26 |
3,704,990,385.65 |
3,292,475,613.50 |
|
Selling Expenses |
94,104,898.87 |
92,765,961.94 |
79,547,060.43 |
|
Administrative Expenses |
156,249,242.44 |
156,393,306.31 |
117,948,011.73 |
|
Total Expenses |
4,293,869,083.57 |
3,954,149,653.90 |
3,489,970,685.66 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
[125,022,002.27] |
45,111,136.12 |
45,690,213.34 |
|
Financial Costs |
[32,962,542.05] |
[23,495,873.44] |
[19,691,337.34] |
|
Profit / [Loss] before Income
Tax |
[157,984,544.32] |
21,615,262.68 |
25,998,876.00 |
|
Income Tax |
- |
[10,153,152.36] |
[7,814,694.31] |
|
|
|
|
|
|
Net Profit / [Loss] |
[157,984,544.32] |
11,462,110.32 |
18,184,181.69 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.79 |
0.85 |
0.73 |
|
QUICK RATIO |
TIMES |
0.14 |
0.12 |
0.14 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.44 |
2.27 |
2.01 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.13 |
1.04 |
1.09 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
126.33 |
136.83 |
104.50 |
|
INVENTORY TURNOVER |
TIMES |
2.89 |
2.67 |
3.49 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
25.20 |
24.66 |
25.44 |
|
RECEIVABLES TURNOVER |
TIMES |
14.48 |
14.80 |
14.35 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
56.97 |
36.73 |
43.91 |
|
CASH CONVERSION CYCLE |
DAYS |
94.56 |
124.75 |
86.03 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
97.94 |
92.77 |
94.41 |
|
SELLING & ADMINISTRATION |
% |
6.06 |
6.24 |
5.66 |
|
INTEREST |
% |
0.80 |
0.59 |
0.56 |
|
GROSS PROFIT MARGIN |
% |
3.04 |
7.37 |
6.97 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(3.03) |
1.13 |
1.31 |
|
NET PROFIT MARGIN |
% |
(3.83) |
0.29 |
0.52 |
|
RETURN ON EQUITY |
% |
(13.73) |
0.88 |
1.40 |
|
RETURN ON ASSET |
% |
(4.33) |
0.30 |
0.57 |
|
EARNING PER SHARE |
BAHT |
(131.65) |
9.55 |
15.15 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.68 |
0.66 |
0.59 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.17 |
1.94 |
1.46 |
|
TIME INTEREST EARNED |
TIMES |
(3.79) |
1.92 |
2.32 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
3.38 |
14.52 |
|
|
OPERATING PROFIT |
% |
(377.14) |
(1.27) |
|
|
NET PROFIT |
% |
(1,478.32) |
(36.97) |
|
|
FIXED ASSETS |
% |
(3.73) |
1.31 |
|
|
TOTAL ASSETS |
% |
(5.19) |
20.40 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is 3.38%. Turnover has increased from THB
3,993,775,208.57 in 2011 to THB 4,128,630,856.85 in 2012. While net profit has
decreased from THB 11,462,110.32 in 2011 to THB -157,984,544.32 in 2012. And
total assets has decreased from THB 3,845,624,208.66 in 2011 to THB
3,646,105,783.35 in 2012.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
3.04 |
Deteriorated |
Industrial Average |
14.74 |
|
Net Profit Margin |
(3.83) |
Deteriorated |
Industrial Average |
0.52 |
|
Return on Assets |
(4.33) |
Deteriorated |
Industrial Average |
0.64 |
|
Return on Equity |
(13.73) |
Deteriorated |
Industrial Average |
1.35 |
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 3.04%. 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 -3.83%.
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 -4.33%.
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 -13.73%.
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 |
0.79 |
Risky |
Industrial
Average |
1.15 |
|
Quick Ratio |
0.14 |
|
|
|
|
Cash Conversion Cycle |
94.56 |
|
|
|
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 0.79 times in 2012, decreased from 0.85 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 0.14 times in 2012,
increased from 0.12 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 95 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.68 |
Acceptable |
Industrial
Average |
0.58 |
|
Debt to Equity Ratio |
2.17 |
Risky |
Industrial
Average |
1.40 |
|
Times Interest Earned |
(3.79) |
Risky |
Industrial
Average |
1.37 |
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 -3.8 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 0.68 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 Uptrend
Times Interest Earned Uptrend
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.44 |
Impressive |
Industrial
Average |
0.63 |
|
Total Assets Turnover |
1.13 |
Impressive |
Industrial
Average |
1.13 |
|
Inventory Conversion Period |
126.33 |
|
|
|
|
Inventory Turnover |
2.89 |
Satisfactory |
Industrial
Average |
3.20 |
|
Receivables Conversion Period |
25.20 |
|
|
|
|
Receivables Turnover |
14.48 |
Impressive |
Industrial
Average |
2.94 |
|
Payables Conversion Period |
56.97 |
|
|
|
The company's Account Receivable Ratio is calculated as 14.48 and 14.80
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 decreased from 2011. This would suggest the company had deteriorated 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 decreased from 137 days at the
end of 2011 to 126 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 2.67 times in year 2011 to 2.89 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.13 times and 1.04
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 Downtrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.67 |
|
|
1 |
Rs.100.65 |
|
Euro |
1 |
Rs.84.25 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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.