MIRA
INFORM REPORT
|
Report Date : |
26.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
INDEX INTERFURN CO., LTD. |
|
|
|
|
Registered Office : |
143 Soi Rama
2 Soi 50,
Rama 2 Road, Samaedam, Bangkhunthien, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
01.07.2009 |
|
|
|
|
Com. Reg. No.: |
0105552064096 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Exporter and
Distributor of Home and Office
Furniture |
|
|
|
|
No. of Employees : |
1,560 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
Payment Behaviour : |
Regular |
|
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
INDEX INTERFURN CO., LTD.
SUMMARY
BUSINESS ADDRESS : 143 SOI RAMA 2 SOI
50, RAMA 2
ROAD,
SAMAEDAM, BANGKHUNTHIEN, BANGKOK
10150
TELEPHONE : [66] 2415-0077,
2898-4488
FAX : [66] 2415-7399,
2415-3883, 2898-4411
E-MAIL ADDRESS : info@index-interfurn.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2009
REGISTRATION NO. : 0105552064096
TAX ID NO. : 3033516449
CAPITAL REGISTERED : BHT. 960,000,000
CAPITAL PAID-UP : BHT.
960,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. PISITH PATAMASATAYASONTHI, THAI
PRESIDENT &
CHIEF EXECUTIVE OFFICER
NO. OF STAFF : 1,560
LINES OF BUSINESS : HOME
AND OFFICE FURNITURE
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 July
1, 2009 as
a private limited
company under the
name style INDEX
INTERFURN CO., LTD.
by Thai groups.
It was set
up under the
merger among 4
companies, named “Index
Interfurn Co., Ltd.”,
registration number 0105526037184, “Bangkok
Home Plus Co.,
Ltd.”, registration number
0105543055829, “Bangkok Cabinet
Co., Ltd.”, registration number
0105532107784, and “Bangkok
Furnitech Co., Ltd.”,
registration number 0105532107750, in
order to manufacture
and service various
styles of home
and office furniture
to both domestic
and international markets.
It currently employs
1,560 staff.
The subject’s registered address
was initially located
at 43/13 Moo
7, Soi Rama
2 Soi 50, Rama
II Rd., Samaedam,
Bangkhunthien, Bangkok 10150.
On May 7, 2010,
subject’s registered address
number was changed
to 143 Soi
Rama 2 Soi 50,
Rama II Rd., Samaedam, Bangkhunthien, Bangkok 10150,
by the Bangkhunthien
District Office, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Pisith Patamasatayasonthi |
[x] |
Thai |
65 |
|
Mrs. Khanthong Udommahantisuk |
[x] |
Thai |
60 |
|
Ms. Krischanok [Jarintorn] Patamasatayasonthi |
|
Thai |
37 |
|
Ms. Pichapim Patamasatayasonthi |
|
Thai |
35 |
|
Mr. Ekaluck Patamasatayasonthi |
|
Thai |
32 |
|
Mr. Ekarit Patamasatayasonthi |
|
Thai |
28 |
|
Mr. Yingyos Udommahantisuk |
[x] |
Thai |
62 |
|
Mr. Piriya Boonkittiwattana |
[x] |
Thai |
52 |
|
Mr. Prasan Harntanasirisakul |
[x] |
Thai |
57 |
*Ms. Jarintorn
Patamasatayasonthi changed her
name to Ms. Krischanok on
September 11, 2012.
AUTHORIZED PERSON
Any two of
the mentioned directors
[x] can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Pisith
Patamasatayasonthi is the
President & Chief Executive Officer.
He is Thai
nationality with the
age of 65
years old.
Mrs. Khanthong
Udommahantisuk is the
Vice President.
She is Thai
nationality with the
age of 60
years old.
Ms. Pichapim
Patamasatayasonthi is the
Vice President [Export].
She is Thai
nationality with the
age of 35
years old.
Mr. Piriya Boonkittiwattana is
the Managing Director.
He is Thai
nationality with the
age of 52
years old.
Mr. Nopporn Duangjinda is
the Operation Director.
He is Thai
nationality.
Mr. Ekapoj
Patanasatayosonthi is the
General Manager [Factory].
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in design,
manufacturing and servicing
various kinds of
home & office furniture under
its own brands and
customers’ brands, which
can be divided
into 10 main products as
follows:
Bed room: beds,
nigh tables, wardrobes, dressing tables,
chest of drawers,
mirror, & bedroom
series.
Living room: coffee
tables, side tables,
nesting tables, console
tables, sideboards, chest of
drawers, show cabinets,
high cabinets, low
cabinets, TV cabinets,
shelves & bookcases, sofa, and
living series.
Dining room: dining
tables, dining chairs, buffet
cabinets, high bar
tables, high bar
stools and dining
sets.
Home office: computer/working
tables, office chairs, shelves & bookcases, pedestals,
and home office
series.
Kids furniture: beds,
night tables, wardrobes, mirror, low cabinets, chest of drawers,
TV tables, tables,
chairs, shelves & bookcases, kids
series.
Occasional outdoors: tables & chairs.
Cash & carry: cloth &
hangers, stools, shoe
hangers, shoe cabinets,
shelves/ cabinets.
Kitchen room: compact
kitchen sets and
kitchen trolleys.
Mattress: mattresses &
bedding accessories.
Office furniture: office
cabinets, cabinets and
working series.
BRAND NAMES
Index group’s brands :
INDEX, WINNER, THERAFLEX,
TREND DESIGN &
LOGICA.
PURCHASE
Raw materials and accessories are purchased from suppliers in
both domestic and
overseas, mainly Japan, Taiwan,
Republic of China, Malaysia,
Hong Kong, Singapore Italy, Germany
and other European
countries.
MAJOR SUPPLIERS
Sahaviriya Steel Industries
Public Company Limited : Thailand
Thai Plywood Co.,
Ltd. : Thailand
Vanachai group : Thailand
SALES [LOCAL]
20% of the products is
sold locally by
wholesale through Index
Living Mall Co.,
Ltd.
EXPORT
80% of the products
is exported to
Australia, New Zealand,
Canada and the
countries in Asia,
Europe, Africa, North America, Central
America, South America
and Middle East
regions such as
U.A.E., Oman, Qatar,
Saudi Arabia and
Bahrain.
RELATED AND AFFILIATED COMPANIES
The Index group
of companies :
Index Living Mall
Co., Ltd.
Business Type :
Distributor of furniture
products
Bangkok Casa Co.,
Ltd.
Business Type :
Distributor of furniture
products
Bangkok Business Co.,
Ltd.
Business Type :
Accounting business in
affiliated companies
Bangkok Sunyo Spring
Co., Ltd.
Business Type :
Manufacturer and distributor
of rubber wood
furniture
Bangkok Masterwood Co.,
Ltd.
Business Type :
Manufacturer and distributor
of rubber wood
furniture
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
T/T.
BANKING
Kasikornbank Public Co.,
Ltd.
Bangkok Bank Public
Co., Ltd.
Bank of Ayudhya
Public Co., Ltd.
EMPLOYMENT
The subject employs
approximately 1,560 staff.
LOCATION DETAILS
The premise is
owned for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Factory and warehouse
are located at
18/1-2, 18/4, 18/10 Moo 4,
Rama 2 Rd.,
T. Nadee, A. Muang, Samutsakorn
74000. Tel. : [66] 34
833-413, Fax. : [66] 34
833-400.
Other warehouse is
located at 99-99/1-2
Moo 5, Ekachai
Rd., T. Kokam, A. Muang,
Samutsakorn 74000.
COMMENT
Index Interfurn is one of the leading and most distinguished furniture
manufacturers in Thailand. For over 35 years, it has dedicated to
provide the best
quality products for
domestic and overseas
markets.
Today Index Interfurn products
has been exported worldwide to over 100 countries
including Asia, Europe, North
America, Central America, South America, Australia, New Zealand, Middle East
and Africa.
Market of home furniture
has outstanding increased
in the first
half of 2012.
This was windfall
from massive floods.
However, property expansion
in the central
of Bangkok along
the BTS sky train
has spurred demand
of household furniture.
This has enabled the
company to have a strong
business growth by the end of
2012 and continued
growing steadily.
FINANCIAL INFORMATION
The capital was
registered at Bht. 960,000,000 divided
into 9,600,000 shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS LISTED WERE
[as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Pisith Patamasatayasonthi Nationality: Thai Address : 147
Soi Rama 2
Soi 50, Rama
2 Rd.,
Samaedam, Bangkhunthien, Bangkok |
2,916,022 |
30.37 |
|
Mrs. Khanthong Udommahantisuk Nationality: Thai Address : 143
Soi Rama 2
Soi 50, Rama
2 Rd.,
Samaedam, Bangkhunthien, Bangkok |
2,416,205 |
25.17 |
|
Ms. Krischanok
Patamasatayasonthi Nationality: Thai Address : 143
Soi Rama 2
Soi 50, Rama
2 Rd.,
Samaedam, Bangkhunthien, Bangkok |
1,008,344 |
10.50 |
|
Ms. Pichapim Patamasatayasonthi Nationality: Thai Address : 143
Soi Rama 2
Soi 50, Rama
2 Rd.,
Samaedam, Bangkhunthien, Bangkok |
1,008,344 |
10.50 |
|
Mr. Ekarit Patamasatayasonthi Nationality: Thai Address : 143
Soi Rama 2
Soi 50, Rama
2 Rd.,
Samaedam, Bangkhunthien, Bangkok |
1,008,344 |
10.50 |
|
Mr. Ekaluck Patamasatayasonthi Nationality: Thai Address : 143
Soi Rama 2
Soi 50, Rama
2 Rd.,
Samaedam, Bangkhunthien, Bangkok |
1,008,344 |
10.50 |
|
Mr. Yingyos Udommahantisuk Nationality: Thai Address : 4/29
Moo 4, Samaedam,
Bangkhunthien, Bangkok |
159,397 |
1.66 |
|
Mr. Piriya Boonkittiwattana Nationality: Thai Address : 100/454
Moo 5, Bangrakpattana,
Bangbuathong, Nonthaburi |
75,000 |
0.80 |
Total Shareholders : 8
Share Structure
[as at April
30, 2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
8 |
9,600,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
8 |
9,600,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mrs. Amporn Sotethisaowapark No.
3486
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 |
82,894,837.91 |
53,231,764.88 |
166,434,374.00 |
|
Short-term Investment |
180,000,000.00 |
180,000,000.00 |
3,919,756.10 |
|
Trade Accounts &
Other Receivable |
588,143,111.44 |
552,731,295.05 |
537,821,525.87 |
|
Short-term Lending |
100,000,000.00 |
100,000,000.00 |
100,000,000.00 |
|
Inventories |
543,878,140.26 |
515,345,532.53 |
483,691,446.25 |
|
|
|
|
|
|
Total Current Assets
|
1,494,916,089.61 |
1,401,308,592.46 |
1,291,867,102.22 |
|
Cash at Bank pledged as a
Collateral |
18,077,648.69 |
26,182,967.33 |
25,850,141.82 |
|
Investment for Sale |
20,156,150.73 |
- |
- |
|
Investment in Associated
Company |
202,019,800.00 |
202,019,800.00 |
202,019,800.00 |
|
Other Long-term Investment |
194,211,700.00 |
194,211,700.00 |
194,211,700.00 |
|
Fixed Assets |
971,852,261.71 |
1,094,287,005.71 |
1,199,786,970.97 |
|
Intangible Assets |
8,785,601.74 |
6,979,662.41 |
8,401,542.19 |
|
Other Non-current Assets |
880,876.45 |
3,299,280.48 |
4,642,436.10 |
|
Total Assets |
2,910,900,128.93 |
2,928,289,008.39 |
2,926,779,693.30 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft and Short-term Loan from Financial
institution |
818,751,686.60 |
714,153,348.68 |
759,647,482.86 |
|
Trade Accounts &
Other Payable |
687,160,032.38 |
678,710,528.26 |
609,590,327.86 |
|
Current Portion of Finance Lease Contract Payable |
312,702.53 |
359,584.94 |
590,338.32 |
|
Current Portion of Long-term Loan |
52,740,000.00 |
46,740,000.00 |
42,733,945.20 |
|
Accrued Income Tax |
733,613.21 |
2,478,794.65 |
893,930.22 |
|
|
|
|
|
|
Total Current Liabilities |
1,559,698,034.72 |
1,442,442,256.53 |
1,413,456,024.46 |
|
Finance Lease Contract Payable,
net |
585,752.22 |
- |
359,584.94 |
|
Other Long Term Loan
|
75,109,573.38 |
101,874,573.38 |
140,152,500.00 |
|
Employee Benefit Obligation |
21,009,971.00 |
22,799,202.00 |
21,911,024.00 |
|
Total Liabilities |
1,656,394,331.32 |
1,567,116,031.91 |
1,575,879,133.40 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized,
issued and fully paid
share capital 9,600,000
shares |
960,000,000.00 |
960,000,000.00 |
960,000,000.00 |
|
|
|
|
|
|
Capital Paid |
960,000,000.00 |
960,000,000.00 |
960,000,000.00 |
|
Retained Earning Appropriated for Statutory Reserve |
46,400,000.00 |
30,000,000.00 |
26,500,000.00 |
|
Unappropriated |
247,949,646.88 |
371,172,976.48 |
364,400,559.90 |
|
Total Shareholders' Equity |
1,254,505,797.61 |
1,361,172,976.48 |
1,350,900,559.90 |
|
Total Liabilities & Shareholders' Equity |
2,910,900,128.93 |
2,928,289,008.39 |
2,926,779,693.30 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
2,989,758,622.37 |
2,764,499,921.62 |
3,137,744,676.83 |
|
Services Income |
98,717,112.99 |
96,820,359.31 |
105,670,886.25 |
|
Other Income |
56,384,055.09 |
67,428,361.10 |
57,744,975.67 |
|
Total Revenues |
3,144,859,790.45 |
2,928,748,642.03 |
3,301,160,538.75 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,848,607,451.39 |
2,613,900,802.89 |
2,928,315,897.82 |
|
Cost of Service |
57,025,097.59 |
58,037,461.97 |
66,125,340.91 |
|
Selling Expenses |
11,722,791.64 |
13,614,412.00 |
32,710,924.53 |
|
Administrative Expenses |
162,959,736.34 |
162,179,672.99 |
202,574,041.37 |
|
Total Expenses |
3,080,315,076.96 |
2,847,732,349.85 |
3,229,726,204.63 |
|
|
|
|
|
|
Profit before Finance Cost and Income Tax |
64,544,713.49 |
81,016,292.18 |
71,434,334.12 |
|
Finance Cost |
[41,398,231.86] |
[39,940,717.43] |
[29,103,492.08] |
|
|
|
|
|
|
Profit before Income Tax |
23,146,481.63 |
41,075,574.75 |
42,330,842.04 |
|
Income Tax |
[4,785,811.23] |
[7,819,158.17] |
[13,208,268.23] |
|
Net Profit / [Loss] |
18,360,670.40 |
33,256,416.58 |
29,122,573.81 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.96 |
0.97 |
0.91 |
|
QUICK RATIO |
TIMES |
0.61 |
0.61 |
0.57 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.18 |
2.61 |
2.70 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.06 |
0.98 |
1.11 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
68.32 |
70.40 |
58.96 |
|
INVENTORY TURNOVER |
TIMES |
5.34 |
5.18 |
6.19 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
69.51 |
70.51 |
60.52 |
|
RECEIVABLES TURNOVER |
TIMES |
5.25 |
5.18 |
6.03 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
86.32 |
92.72 |
74.30 |
|
CASH CONVERSION CYCLE |
DAYS |
51.51 |
48.19 |
45.18 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
94.08 |
93.38 |
92.32 |
|
SELLING & ADMINISTRATION |
% |
5.66 |
6.14 |
7.25 |
|
INTEREST |
% |
1.34 |
1.40 |
0.90 |
|
GROSS PROFIT MARGIN |
% |
7.75 |
8.98 |
9.46 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.09 |
2.83 |
2.20 |
|
NET PROFIT MARGIN |
% |
0.59 |
1.16 |
0.90 |
|
RETURN ON EQUITY |
% |
1.46 |
2.44 |
2.16 |
|
RETURN ON ASSET |
% |
0.63 |
1.14 |
1.00 |
|
EARNING PER SHARE |
BAHT |
1.91 |
3.46 |
3.03 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.57 |
0.54 |
0.54 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.32 |
1.15 |
1.17 |
|
TIME INTEREST EARNED |
TIMES |
1.56 |
2.03 |
2.45 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
7.94 |
(11.78) |
|
|
OPERATING PROFIT |
% |
(20.33) |
13.41 |
|
|
NET PROFIT |
% |
(44.79) |
14.19 |
|
|
FIXED ASSETS |
% |
(11.19) |
(8.79) |
|
|
TOTAL ASSETS |
% |
(0.59) |
0.05 |
|
ANNUAL GROWTH : RISKY
An annual sales growth is 7.94%. Turnover has increased from THB 2,861,320,280.93
in 2011 to THB 3,088,475,735.36 in 2012. While net profit has decreased from
THB 33,256,416.58 in 2011 to THB 18,360,670.40 in 2012. And total assets has
decreased from THB 2,928,289,008.39 in 2011 to THB 2,910,900,128.93 in 2012.
PROFITABILITY : IMPRESSIVE
PROFITABILITY RATIO
|
Gross Profit Margin |
7.75 |
Deteriorated |
Industrial Average |
36.00 |
|
Net Profit Margin |
0.59 |
Impressive |
Industrial Average |
0.31 |
|
Return on Assets |
0.63 |
Impressive |
Industrial Average |
0.40 |
|
Return on Equity |
1.46 |
Impressive |
Industrial Average |
1.42 |
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 7.75%. 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 0.59%, 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
0.63%, 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 1.46%, 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 : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.96 |
Risky |
Industrial Average |
1.22 |
|
Quick Ratio |
0.61 |
|
|
|
|
Cash Conversion Cycle |
51.51 |
|
|
|
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 0.96 times in 2012, decreased from 0.97 times, then the company may
have problems meeting its short-term obligations. 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 0.61 times in 2012,
same figure as 0.61 times in
2011, 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 52 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.57 |
Impressive |
Industrial Average |
0.68 |
|
Debt to Equity Ratio |
1.32 |
Satisfactory |
Industrial Average |
2.06 |
|
Times Interest Earned |
1.56 |
Impressive |
Industrial Average |
0.43 |
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 1.56 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 0.57 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 Downtrend
ACTIVITY : IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.18 |
Impressive |
Industrial Average |
0.43 |
|
Total Assets Turnover |
1.06 |
Satisfactory |
Industrial Average |
1.15 |
|
Inventory Conversion Period |
68.32 |
|
|
|
|
Inventory Turnover |
5.34 |
Impressive |
Industrial Average |
2.96 |
|
Receivables Conversion Period |
69.51 |
|
|
|
|
Receivables Turnover |
5.25 |
Impressive |
Industrial Average |
2.04 |
|
Payables Conversion Period |
86.32 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.25 and 5.18 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 decreased from 70 days at the
end of 2011 to 68 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 5.18 times in year 2011 to 5.34 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.06 times and 0.98
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 Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.70 |
|
|
1 |
Rs.92.25 |
|
Euro |
1 |
Rs.78.38 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.