MIRA
INFORM REPORT
|
Report Date : |
15.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
ALPHA SPINNING CO., LTD. |
|
|
|
|
Registered Office : |
329/1 Moo 1, Soi Bancha, Suksawad Road, Naiklongbangplakod, Phrasamutjaedee, Samutprakarn 10130 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
04.04.1988 |
|
|
|
|
Com. Reg. No.: |
0115531001061 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor and Exporter of Yarn Spinning |
|
|
|
|
No. of Employees : |
500 |
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
ALPHA SPINNING
CO., LTD.
SUMMARY
BUSINESS ADDRESS : 329/1
MOO 1, SOI
BANCHA, SUKSAWAD ROAD,
NAIKLONGBANGPLAKOD, PHRASAMUTJAEDEE, SAMUTPRAKARN
10130, THAILAND
TELEPHONE : [66] 2425-0396-9
FAX : [66]
2425-0450
E-MAIL
ADDRESS : raman@alphacompanies.com
info@alphacompanies.com
REGISTRATION ADDRESS : 70
MOO 9, SOI
SINFAH, SUKSAWAD ROAD,
BANGKRU, PHRAPRADAENG,
SAMUTKRAKARN 10130,
THAILAND
ESTABLISHED : 1988
REGISTRATION NO. : 0115531001061 [Former
: SOR. POR.
1140]
TAX
ID NO. : 3271021453
CAPITAL
REGISTERED : BHT. 150,000,000
CAPITAL
PAID-UP : BHT. 150,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SUTHEP KITTIKULSINGH, THAI
PRESIDENT
NO. OF
STAFF : 500
LINES OF
BUSINESS : YARN
SPINNING
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
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 April
4, 1988 as
a private limited
company under the
name style ALPHA SPINNING CO., LTD. by Thai-Indian groups,
to provide yarn
spinning for both
local and overseas
markets. It currently
employs approximately 500
staff.
At present, the subject
is ISO 9002
certified according to
Uster [the Swiss
makers of yarn
testing instruments and
publishers of international
yarn quality norms], its
yarn quality ranks
among the top 5
of world
spinners for most
yarn types produces.
The subject’s registered
address is 70 Moo 9, Soi Sinfah,
Suksawad Rd., Bangkru,
Phrapradaeng, Samutkrakarn 10130,
while the current
operation address is
located at 329/1
Moo 1, Soi
Bancha, Suksawad Rd.,
Naiklongbangplakod,
Phrasamutjaedee, Samutprakarn 10130.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Suthep Kittikulsingh |
[x] |
Thai |
66 |
|
Mrs. Rano Kittikulsingh |
[x] |
Thai |
64 |
|
Mr. Ramal Kittikulsingh |
|
Thai |
43 |
|
Mr. Komane Chatrirat |
[x] |
Thai |
59 |
AUTHORIZED PERSON
Any of the
mentioned directors [x] can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Suthep
Kittikulsingh is the
President.
He is Thai
nationality with the
age of 66
years old.
Mr. Komane
Chatrirat is the
Vice President.
He is Thai
nationality with the
age of 59
years old.
Mr. Ramal
Kitikulsingh is the
Vice President.
He is Thai
nationality with the
age of 43
years old.
Mr. Menesh
Shah is the
General Manager.
He is Indian
nationality.
Mr. Ramesh Iyer
is the Sales & Marketing Manager.
He is Indian
nationality.
Mrs. Pornthip
Hatthakitkosol is the
Chief of Finance.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is engaged
in manufacturing service of yarn
spinning, spun yarns
in various fibers
including polyester, viscose,
cotton, linen, polynosic,
modal and its
blends in both
regular and fancy
slub variations.
The subject is
also manufacturer and
distributor of polyester
yarn and cotton yarn
under its own
brand “ALPHACEL”.
The subject is
outfitted with equipment
from the leading
machinery manufacturers such as SHLAFOST, REITER, MURATA, LAKSHMI
REITER, VOLKMANN, INGLOSTADT and BARMAG.
PURCHASE
90% of the raw materials
is purchased from
local suppliers and
agents, the remaining 10%
mainly natural yarn,
cotton yarn are
imported from India,
Taiwan, Germany, Japan,
Australia and Republic
of China.
SALES
80% of the
products is sold
locally by wholesale
to manufacturers and
end-users, the remaining 20%
is exported to Germany, Israel,
Hong Kong, Republic of China, Singapore,
Vietnam, India, Australia,
New Zealand, Taiwan and
etc.
MAJOR CUSTOMERS
Saha Union Public
Co., Ltd. :
Thailand
Tuntex Textile [Thailand] Co.,
Ltd. : Thailand
Thai Rayon Public
Co., Ltd. :
Thailand
Teijin Polyester [Thailand]
Co., Ltd. : Thailand
Alphatex Industries Public
Co., Ltd. : Thailand
Beta Weaving Factory
Co., Ltd. :
Thailand
Asia Textile Co.,
Ltd. : Thailand
Luckytex [Thai] Public
Company Limited :
Thailand
RELATED COMPANIES
Alphatex Industries Public
Co., Ltd.
Business Type : Manufacture
of textiles
Alfino International Co.,
Ltd.
Business Type : Distributor
of garment products
Alpha Processing Co.,
Ltd.
Business Type : Textile
dyeing & finishing
service
Alpha Apparel Co.,
Ltd.
Business Type : Manufacturer
of garment products
LITIGATION
Bankruptcy and
Receivership
On May 31, 2000,
The Central Bankruptcy
Court has received
the petition for
company’s rehabilitation from
Alpha Spinning Co., Ltd.,
black case no.
413/2543.
On June 26,
2000, the Central
Bankruptcy Court has
ordered the Company
to enter into
business rehabilitation and
appointed Alpha Planner
Co., Ltd. to
be the Planner
according to red
case no. 467/2543.
As a result
of such Court
order, the power
and duties in
managing the business
and asset of
the company’s directors,
including all legal
rights of the
company’s shareholders shall
be vested in the
Planner according to Article
90/25 of Bankruptcy
Act B.E. 2483.
On February
23, 2001, the Court
approved the rehabilitation plan
and assigned Alpha
Planner Co., Ltd.
to be the
Plan Administrator. As a
result of such
Court order, the
power and duties
of the Planner
shall be vested
in the Plan Administrator
according to Article
90/59 of Bankruptcy
Act B.E. 2483.
On July
11, 2001, Alpha
Spinning Co., Ltd. has
agreed to operate
under the rehabilitation plan
& debt restructuring
by transferring its
assets such as
land, building &
machinery for some
debt repayment to
the creditors. However,
the company has
received a right
to lease such
assets for its
normal business operation.
Moreover, it has
a right to
buy back such assets
within 7 years
in which the
company has to
make prepayment by
installments until the amount
has been fully
settled as mentioned
in the agreement.
CREDIT
Sales & services
are by cash
or on the
credits term of
30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60-90 days.
Imports are by
L/C at sight
or on the
credits term of
30-60 days &
T/T on negotiation.
Exports are against
T/T.
BANKING
Citibank N.A.
[Bangkok Branch
: 82 North
Sathorn Rd., Silom,
Bangrak, Bangkok 10330]
Bangkok Bank
Public Co., Ltd.
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok 10100]
EMPLOYMENT
The subject employs
approximately 500 office
staff and factory
workers.
LOCATION DETAILS
The premise is
rented for administrative office,
factory and warehouse
on 44,800 square
meters of area
at the heading
address. Premise is
located in an
industrial area.
COMMENT
The subject, as the leading spinning’s facilities, is designed to handle
a complete spectrum of fibers from the coarsest of linens to the finest of
synthetics. The products
are for industrial
users, such as
garment, decoration and
household items industries, as
well as retail
market for general
consumer.
Slow
exports sales had seen
in the previous
year, while local
consumption was still. However, the
current market situation both
local and overseas
has gradually improved,
in which expected
a good business
outcome this year.
FINANCIAL INFORMATION
The capital was
registered at Bht.
2,000,000 divided into
20,000 shares of
Bht. 100 each.
The capital was
increased later as
follows:
Bht.
100,000,000 on March
22, 1989
Bht.
150,000,000 on October
24, 1995
The latest registered
capital was increased
to Bht. 150,000,000
divided into 1,500,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE :
[as at April
30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Komane
Chatrirat Nationality: Thai Address : 91/31
Moo 5, Thakham, Bangkhunthien, Bangkok |
415,472 |
27.70 |
|
Mr. Ramal
Kittikulsingh Nationality: Thai Address : 24
Sukhumvit Rd., Klongtoeynua, Watana,
Bangkok |
279,000 |
18.60 |
|
Mrs. Rano
Kittikulsingh Nationality: Thai Address : 24
Sukhumvit Rd., Klongtoeynua, Watana,
Bangkok |
208,000 |
13.86 |
|
Mr. Zures
Kulati Nationality: Thai Address : 24
Sukhumvit Rd., Klongtoeynua, Watana,
Bangkok |
208,000 |
13.86 |
|
Mr. Suthep
Kittikulsingh Nationality: Thai Address : 70
Moo 9, T. Bangkru,
A. Phrapradaeng,
Samutprakarn |
109,528 |
7.30 |
|
Mrs. Paveena
Chatrirat Nationality: Thai Address : 91/31
Moo 5, Thakham, Bangkhunthien, Bangkok |
70,000 |
4.67 |
|
Ms. Sunnam
Kittikulsingh Nationality: Thai Address : 24
Sukhumvit Rd., Klongtoeynua, Watana,
Bangkok |
70,000 |
4.67 |
|
Mr. Matabsingh
Kambir Nationality: Thai Address : 427
Chakrapetch Rd., Wangburapa,
Phranakorn, Bangkok
10200 |
70,000 |
4.67 |
|
Mr. Asoke
Kumar Jawala Nationality: Thai Address : 40/1
Soi Charoenchai, Klongtoey,
Phrakanong, Bangkok |
70,000 |
4.67 |
Total Shareholders
: 9
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
9 |
1,500,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
9 |
1,500,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Mrs. Payao Navarat
No. 987
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
3,515,491.89 |
16,152,018.61 |
20,393,316.99 |
|
Trade Accounts & Other
Receivable |
139,377,701.73 |
129,583,742.90 |
83,238,242.44 |
|
Short-term Lending |
111,606,000.00 |
114,006,000.00 |
112,206,000.00 |
|
Inventories |
116,108,764.70 |
112,673,376.69 |
133,025,845.13 |
|
Other Current Assets
|
14,832,864.70 |
12,957,356.86 |
82,121,264.10 |
|
|
|
|
|
|
Total Current Assets
|
385,440,823.02 |
385,372,495.06 |
430,984,668.66 |
|
Long-term Investment |
1,200,000.00 |
1,200,000.00 |
1,200,000.00 |
|
Fixed Assets |
14,320,769.99 |
17,500,677.49 |
22,898,587.43 |
|
Cash at Bank pledged as
a Collateral |
7,000,000.00 |
7,000,000.00 |
7,000,000.00 |
|
Purchase Assets Deposit |
57,502,000.00 |
57,500,000.00 |
- |
|
Other Non-current Assets |
12,308,471.81 |
15,616,236.73 |
76,196,604.22 |
|
Total Assets |
477,772,064.82 |
484,189,409.28 |
538,279,860.31 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable |
180,384,268.55 |
179,289,538.92 |
174,792,425.87 |
|
Short-term Loan from
Related Company |
11,100,000.00 |
8,800,000.00 |
37,000,000.00 |
|
Other Current Liabilities |
5,622,377.18 |
6,619,491.00 |
34,843,864.67 |
|
|
|
|
|
|
Total Current Liabilities |
197,106,645.73 |
194,709,029.92 |
246,636,290.54 |
|
Debt Restructuring Payable |
292,163,623.08 |
319,033,993.22 |
321,597,391.41 |
|
Total Liabilities |
489,270,268.81 |
513,743,023.14 |
568,233,681.95 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,500,000 shares |
150,000,000.00 |
150,000,000.00 |
150,000,000.00 |
|
|
|
|
|
|
Capital Paid |
150,000,000.00 |
150,000,000.00 |
150,000,000.00 |
|
Retained Earning -
Unappropriated |
[161,498,203.99] |
[179,553,613.86] |
[179,953,821.64] |
|
Total Shareholders' Equity |
[11,498,203.99] |
[29,553,613.86] |
[29,953,821.64] |
|
Total Liabilities &
Shareholders' Equity |
477,772,064.82 |
484,189,409.28 |
538,279,860.31 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales & Service
Income |
658,594,327.38 |
738,735,580.37 |
767,640,274.41 |
|
Profit from Restructuring |
22,581,851.63 |
- |
343,156.33 |
|
Other Income |
12,195,507.39 |
11,578,371.33 |
18,732,756.08 |
|
Total Revenues |
693,371,686.40 |
750,313,951.70 |
786,716,186.82 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
569,011,056.94 |
645,208,343.56 |
666,175,095.06 |
|
Selling Expenses |
20,227,737.49 |
21,196,613.37 |
32,077,540.62 |
|
Administrative Expenses |
85,441,999.49 |
82,094,423.28 |
83,408,865.35 |
|
Total Expenses |
674,680,793.92 |
748,499,380.21 |
781,661,501.03 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost |
18,690,892.48 |
1,814,571.49 |
5,054,685.79 |
|
Financial Cost |
[552,590.97] |
[1,038,925.00] |
[3,961,737.46] |
|
|
|
|
|
|
Net Profit / [Loss] |
18,138,301.51 |
775,646.49 |
1,092,948.33 |
|
Retained Earning, beginning
of year |
[179,553,613.86] |
[179,953,821.64] |
[182,170,930.22] |
|
Less: Adjustment |
[82,891.64] |
[375,438.71] |
1,124,160.25 |
|
Retained Earning, end
of year |
[161,498,203.99] |
[179,553,613.86] |
[179,953,821.64] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.96 |
1.98 |
1.75 |
|
QUICK RATIO |
TIMES |
1.29 |
1.33 |
0.88 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
45.99 |
42.21 |
33.52 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.38 |
1.53 |
1.43 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
74.48 |
63.74 |
72.89 |
|
INVENTORY TURNOVER |
TIMES |
4.90 |
5.73 |
5.01 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
77.24 |
64.03 |
39.58 |
|
RECEIVABLES TURNOVER |
TIMES |
4.73 |
5.70 |
9.22 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
115.71 |
101.43 |
95.77 |
|
CASH CONVERSION CYCLE |
DAYS |
36.01 |
26.34 |
16.69 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
86.40 |
87.34 |
86.78 |
|
SELLING & ADMINISTRATION |
% |
16.04 |
13.98 |
15.04 |
|
INTEREST |
% |
0.08 |
0.14 |
0.52 |
|
GROSS PROFIT MARGIN |
% |
18.88 |
14.23 |
15.70 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.84 |
0.25 |
0.66 |
|
NET PROFIT MARGIN |
% |
2.75 |
0.10 |
0.14 |
|
RETURN ON EQUITY |
% |
- |
- |
- |
|
RETURN ON ASSET |
% |
3.80 |
0.16 |
0.20 |
|
EARNING PER SHARE |
BAHT |
12.09 |
0.52 |
0.73 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
1.02 |
1.06 |
1.06 |
|
DEBT TO EQUITY RATIO |
TIMES |
(42.55) |
(17.38) |
(18.97) |
|
TIME INTEREST EARNED |
TIMES |
33.82 |
1.75 |
1.28 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(10.85) |
(3.77) |
|
|
OPERATING PROFIT |
% |
930.04 |
(64.10) |
|
|
NET PROFIT |
% |
2,238.48 |
(29.03) |
|
|
FIXED ASSETS |
% |
(18.17) |
(23.57) |
|
|
TOTAL ASSETS |
% |
(1.33) |
(10.05) |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -10.85%. Turnover has decreased from THB
738,735,580.37 in 2011 to THB 658,594,327.38 in 2012. While net profit has
increased from THB 775,646.49 in 2011 to THB 18,138,301.51 in 2012. And total
assets has decreased from THB 484,189,409.28 in 2011 to THB 477,772,064.82 in
2012.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
18.88 |
Impressive |
Industrial
Average |
14.74 |
|
Net Profit Margin |
2.75 |
Impressive |
Industrial
Average |
0.52 |
|
Return on Assets |
3.80 |
Impressive |
Industrial
Average |
0.64 |
|
Return on Equity |
- |
|
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 18.88%. 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. The company’s figure is
2.75%, 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
3.8%, higher figure when compared with those of its average competitors in the
same industry, indicated that business was an efficient profit in a dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.96 |
Impressive |
Industrial
Average |
1.14 |
|
Quick Ratio |
1.29 |
|
|
|
|
Cash Conversion Cycle |
36.01 |
|
|
|
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 1.96 times in 2012, decreased from 1.98 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 1.29 times in 2012,
decreased from 1.33 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 37 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
1.02 |
Risky |
Industrial
Average |
0.58 |
|
Debt to Equity Ratio |
(42.55) |
Risky |
Industrial
Average |
1.40 |
|
Times Interest Earned |
33.82 |
Impressive |
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 33.83 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 1.02 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 : EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
45.99 |
Impressive |
Industrial
Average |
0.63 |
|
Total Assets Turnover |
1.38 |
Impressive |
Industrial
Average |
1.13 |
|
Inventory Conversion Period |
74.48 |
|
|
|
|
Inventory Turnover |
4.90 |
Impressive |
Industrial
Average |
3.20 |
|
Receivables Conversion Period |
77.24 |
|
|
|
|
Receivables Turnover |
4.73 |
Impressive |
Industrial
Average |
2.94 |
|
Payables Conversion Period |
115.71 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.73 and 5.70 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 increased from 64 days at the
end of 2011 to 74 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 5.73 times in year 2011 to 4.9 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.38 times and 1.53
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.57.74 |
|
|
1 |
Rs.90.64 |
|
Euro |
1 |
Rs.77.02 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.