MIRA
INFORM REPORT
|
Report Date : |
12.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
FABRINET CO.,
LTD. |
|
|
|
|
Registered Office : |
5/6 Moo 6, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
30.06.2012 |
|
|
|
|
Date of Incorporation : |
30.06.2012 |
|
|
|
|
Com. Reg. No.: |
0105542073726 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer & Exporter of Electronic and Fiber Optic Components |
|
|
|
|
No. of Employees : |
4,500 |
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 |
|
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) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
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
FABRINET
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 5/6
MOO 6, PHAHOLYOTHIN
ROAD,
T.
KLONGNUENG, A. KLONGLUANG,
PATHUMTHANI 12120,
THAILAND
TELEPHONE : [66] 2524-9600,
2998-9945-9
FAX :
[66] 2524-9690,
2998-9957-8, 2524-9664
E-MAIL
ADDRESS : sales@fabrinet.co.th
hr@fabrinet.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1999
REGISTRATION
NO. : 0105542073726 [Former : 1158/2542]
TAX
ID NO. : 3021049348
CAPITAL REGISTERED : BHT. 600,000,000
CAPITAL PAID-UP : BHT.
600,000,000
SHAREHOLDER’S PROPORTION : FOREIGN
: 100%
FISCAL YEAR CLOSING DATE : JUNE
30
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
DAVID THOMAS MITCHELL,
AMERICAN
CHAIRMAN OF
THE BOARD AND
CHIEF
EXECUTIVE OFFICER
NO.
OF STAFF : 4,500
LINES
OF BUSINESS : ELECTRONIC AND
FIBER OPTIC COMPONENTS
MANUFACTURER &
EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject
was established on
September 27, 1999 as
a private limited
company under the name style FABRINET CO., LTD., by Mr.
David Thomas Mitchell, an American
businessman.
Fabrinet began operations in January 2000 by acquiring
a 232,000 square feet facility from Seagate Technology in Bangkok, Thailand, with the goal to leverage
the precision mechanical and processing engineering skill sets from the disk
drive industry into other market segments.
Fabrinet is a new Electronic Manufacturing Services [EMS] company
manufacturing electronic components.
It currently employs
approximate 4,500 staff.
On April 26, 2000,
Fabrinet achieved ISO 9002
and ISO 14001 certifications from
UKAS and AJA [Anglo Japanese - American Registrars].
The subject received
the promotional privilege
from the Board
of Investment on
January 5, 2000 &
July 21, 2000.
The subject is
a wholly owned
subsidiary of Fabrinet,
Cayman Island, the
leading engineer and
manufacturing services technology
company by providing
products and service
to wide range
of industries such as
Telecommunications, Data
Communications, Automotive, Medical,
Mass Storage, Industrial/Commercial & Imaging.
The subject’s registered
address was initially at
294 Moo 8, Vibhavadi-Rangsit Rd.,
T. Kukot, A. Lamlukka, Pathumthani
12130.
In 2012, its registered address was
relocated to 5/6 Moo 6,
Phaholyothin Rd.,
T. Klongnueng, A.
Klongluang, Pathumthani 12120,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. David Thomas
Mitchell |
: Chairman
[x] |
American |
71 |
|
Mr. Soon Kaewchansilp |
[x] |
Thai |
74 |
|
Mr. Veeraphan Poonkes |
|
Thai |
51 |
AUTHORIZED PERSON
One of the above
directors [x] can sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. David Thomas
Mitchell is the
Chairman of the
Board & Chief Executive Officer.
He is American
nationality with the
age of 71
years old.
He was a
President and Co-founder
of Seagate Technology
Group.
Dr. Harpal Gill is
the Executive Vice
President, Chief Operating
Officer.
He is American
nationality.
Mr. Toh-Seng [TS] Ng is
the Executive Vice President, Chief
Financial Officer.
He is Singaporean
nationality.
Ms. Siriwan Kaewchansilp is
the Executive Vice
President, Sales &
Marketing.
She is Thai
nationality.
Mr. Sompop Ratanasawetvat is
the Senior Vice
President, Chief Technical
Officer/ Human Resources Director.
He is Thai
nationality.
Mr. Nutthasorn Kiattinan
is the Senior
Vice President of
Finance.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
service of fiber optic
components and other
electronic components for
automotive, medical, telecom & networking, communication
and other industries. The company
also supplies its
products to Seagate
Technology group worldwide.
IMPORT [COUNTRIES]
20% of raw
materials, accessories, steel,
stainless steel and
aluminum are imported
from Germany, France, Taiwan, Republic
of China, Indonesia,
India, Australia, Singapore,
Korea, Malaysia, and
80% of the
rest is purchased
locally.
MAJOR SUPPLIERS
Bangkok Special Steel
Co., Ltd.
Thai Metal Trade
Public Company Limited
Posco Thainox Public
Company Limited
EXPORT [COUNTRY]
100% of the
products is exported
to United States
of America, Asia
and Europe.
MAJOR CUSTOMERS
Avanex Corp. : U.S.A.
Finisar Corp. : U.S.A.
Emcore Corporation : U.S.A.
Hitachi Cable Ltd. : Japan
Opnext Inc. : U.S.A.
PARENT COMPANY
Fabrinet of Cayman
Island
Business Address : Walker House,
87 Mary Street,
George Town Grand
Cayman,
Cayman Island, British
West Indies.
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
according for the
past two years.
CREDIT
Local bills are
paid by cash
or on the
credits term of
30-60-90 days.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BANKING
Bank of America
NT & SA
[Bangkok Branch : 2/2
Wireless Rd., Pathumwan,
Bangkok 10330]
Bangkok Bank Public
Co., Ltd.
[Simummuang Branch : Phaholyothin Rd.,
Thanyaburi, Pathumthani]
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject employs approximately 4,500 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is
owned for administrative office & factory I at the
heading address.
Premise is located
in commercial/residential area.
Factories
Factory I:
Address :
5/6 Moo 6, Phaholyothin
Rd., T. Klongnueng, A. Klongluang,
Pathumthani 12120.
Location/Area : 115,000 ft2/10,700 m2
of engineering and
manufacturing floor space
[Expansion to 315,000 ft2/29,250 m2.]
Factory II:
Address : 5/5
Moo 6, Phaholyothin Rd.,
T. Klongnueng, A. Klongluang,
Pathumthani 12120.
Factory III:
Address : 5/15
Moo 6, Phaholyothin Rd., T.
Klongnueng, A. Klongluang,
Pathumthani 12120.
Manufacturing Capabilities:
- Material & Process Lab
- Reliability Lab
- Epoxy Lab
- Automated Assembly
- High Volume Hand Solder
and Assembly
- Optical Assembly
Note
Refer to your
given name “Fabrient
Co., Ltd.”, please
be informed that, the correct
name is “Fabrinet
Co., Ltd.”.
COMMENT
The subject is
an engineering and
manufacturing services provider of
complex optical and electro-mechanical components, modules
and bulk optics serving data communications, telecom, networking and
automotive markets worldwide.
The subject’s operating
performance in 2012
was depressive with
a decrease in
total revenues and
a net loss
at the end of year
due to a
slowdown of the
global economy which
resulted in a
decrease in number
of orders, associated
with a strengthening
of Thai bath
which was unfavourable
to the exporters.
Generally, the subject
expects the situation
to remain still
this year.
FINANCIAL INFORMATION
The capital was registered at Bht. 100,000 divided into
10,000 shares of
Bht. 10 each.
The capital was
increased later as
followings:
Bht. 86,000,000 on
December 22, 1999
Bht. 200,000,000
on March 26,
2001
Bht. 400,000,000
on April 24,
2007
Bht. 600,000,000
on July 9,
2010
The latest registered
capital was increased
to Bht. 600,000,000
divided into 60,000,000
shares of Bht.
10 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE
[as at October
22, 2012]
NAME
|
HOLDING |
% |
|
|
|
|
Fabrinet of
Cayman Island
Nationality: Cayman Island Address : Walker
House, 87 Mary
Street, George Town Grand
Cayman, Cayman Island, British
West Indies. |
59,999,992 |
100.00 |
Mr. David
Thomas Mitchell
Nationality: American Address : California,
U.S.A. |
1 |
- |
Mrs. Jintamai
Mitchell
Nationality: American Address : California,
U.S.A. |
1 |
- |
Master Jean
Thomas Mitchell
Nationality: American Address : California,
U.S.A. |
1 |
- |
Master Gabriel
Thomas Mitchell
Nationality: American
Address : California,
U.S.A.
|
1 |
- |
Master Alexander
Thomas Mitchell
Nationality: American
Address : California,
U.S.A.
|
1 |
- |
Mrs. Antonia
D. Kaewchansilp
Nationality: Swedish
Address : 233/5
Moo 5, Nongbon,
Pravet, Bangkok
|
1 |
- |
Ms. Siriwan
Kaewchansilp
Nationality: Thai Address : 233/5
Moo 5, Nongbon,
Pravet, Bangkok |
1 |
- |
Mr. Soon
Kaewchansilp
Nationality: Thai Address : 233/5
Moo 5, Nongbon,
Pravet, Bangkok |
1 |
- |
Total Shareholders : 9
Share Structure [as
at October 22,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
2 |
- |
|
Foreign |
7 |
59,999,998 |
100.00 |
|
Total |
9 |
60,000,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO
Mr. Vichien Kingmontri No.
3977
BALANCE SHEET [BAHT]
The
latest financial figures
published for June
30, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
226,026,137 |
367,744,681 |
163,995,380 |
|
Trade Accounts & Other
Receivable |
253,116,844 |
156,374,440 |
71,330,594 |
|
Inventories |
51,543,436 |
20,626,847 |
57,528,403 |
|
Value Added Tax |
52,072,391 |
25,752,202 |
20,124,432 |
|
Land Deposit |
- |
- |
70,000,000 |
|
Other Current Assets
|
10,120,019 |
13,162,361 |
24,814,689 |
|
|
|
|
|
|
Total Current Assets
|
592,878,827 |
583,660,531 |
407,793,498 |
|
Fixed Assets |
2,870,195,339 |
2,195,425,593 |
1,804,564,563 |
|
Intangible Assets |
10,957,201 |
26,081,736 |
34,727,508 |
|
Deferred Income Tax |
146,237,098 |
61,408,434 |
40,300,629 |
|
Other Assets |
19,176,706 |
20,191,356 |
18,127,299 |
|
Total Assets |
3,639,445,171 |
2,886,767,650 |
2,305,513,497 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts & Other Payable |
1,105,797,876 |
659,902,212 |
205,136,646 |
|
Current Portion of Long-term
Loan from Financial Institution |
309,038,591 |
135,846,308 |
195,779,096 |
|
Other Payable |
- |
- |
119,108,111 |
|
Salary & Accrued
Welfare |
125,815,318 |
135,478,938 |
102,743,079 |
|
Accrued Income Tax |
- |
32,773,818 |
44,861,397 |
|
Accrued Expenses |
31,965,100 |
- |
62,483,795 |
|
|
|
|
|
|
Total Current Liabilities |
1,572,616,885 |
964,001,276 |
730,112,124 |
|
Long-term Loan from
Bank |
924,143,015 |
370,009,757 |
468,494,682 |
|
Employees’ Compensation |
140,704,263 |
137,168,301 |
112,054,700 |
|
Total Liabilities |
2,637,464,163 |
1,471,179,334 |
1,310,661,506 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid
share capital 60,000,000
shares in 2012
and 2011; 40,000,000
shares in 2010 respectively |
600,000,000 |
600,000,000 |
400,000,000 |
|
|
|
|
|
|
Capital Paid |
600,000,000 |
600,000,000 |
400,000,000 |
|
Retained Earning Appropriated for Statutory Reserve |
3,000,000 |
3,000,000 |
3,000,000 |
|
Unappropriated |
398,981,008 |
812,588,316 |
591,851,991 |
|
Total Shareholders' Equity |
1,001,981,008 |
1,415,588,316 |
994,851,991 |
|
Total Liabilities & Shareholders'
Equity |
3,639,445,171 |
2,886,767,650 |
2,305,513,497 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
726,671,123 |
594,897,327 |
144,680,401 |
|
Service Income |
3,529,202,752 |
4,026,136,264 |
3,141,510,723 |
|
Other Income |
11,777,092 |
6,651,349 |
5,451,838 |
|
[Loss] / Gain on Exchange
Rate |
[76,778,473] |
13,562,462 |
67,268,596 |
|
Interest Income |
5,211,280 |
3,289,539 |
1,289,981 |
|
Total Revenues |
4,196,083,774 |
4,644,536,941 |
3,360,201,539 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
649,895,418 |
546,248,878 |
129,961,205 |
|
Cost of Service |
3,320,275,116 |
3,603,426,448 |
2,807,878,730 |
|
Selling & Administrative Expenses |
188,908,641 |
221,247,290 |
211,563,712 |
|
Organization Restructuring
Expenses |
465,365,726 |
- |
- |
|
Employees Expenses |
56,999,152 |
- |
- |
|
Total Expenses |
4,681,444,053 |
4,370,922,616 |
3,149,403,647 |
|
|
|
|
|
|
Profit / [Loss] before Interest
Expenses & Income
Tax |
[485,360,279] |
273,614,325 |
210,797,892 |
|
Interest Expenses |
[13,075,693] |
[10,990,576] |
[16,662,405] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax |
[498,435,972] |
262,623,749 |
194,135,487 |
|
Income Tax [Benefit] |
84,828,664 |
[41,887,424] |
[58,341,505] |
|
|
|
|
|
|
Net Profit / [Loss] |
[413,607,308] |
220,736,325 |
135,793,982 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.38 |
0.61 |
0.56 |
|
QUICK RATIO |
TIMES |
0.30 |
0.54 |
0.32 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.48 |
2.10 |
1.82 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.17 |
1.60 |
1.43 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
4.74 |
1.81 |
7.15 |
|
INVENTORY TURNOVER |
TIMES |
77.03 |
201.18 |
51.07 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
21.71 |
12.35 |
7.92 |
|
RECEIVABLES TURNOVER |
TIMES |
16.81 |
29.55 |
46.07 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
101.66 |
58.04 |
25.49 |
|
CASH CONVERSION CYCLE |
DAYS |
(75.22) |
(43.88) |
(10.42) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
93.29 |
89.80 |
89.40 |
|
SELLING & ADMINISTRATION |
% |
5.78 |
4.79 |
6.44 |
|
INTEREST |
% |
0.31 |
0.24 |
0.51 |
|
GROSS PROFIT MARGIN |
% |
5.31 |
10.71 |
12.85 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(11.40) |
5.92 |
6.41 |
|
NET PROFIT MARGIN |
% |
(9.72) |
4.78 |
4.13 |
|
RETURN ON EQUITY |
% |
(41.28) |
15.59 |
13.65 |
|
RETURN ON ASSET |
% |
(11.36) |
7.65 |
5.89 |
|
EARNING PER SHARE |
BAHT |
(6.89) |
3.68 |
3.39 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.72 |
0.51 |
0.57 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.63 |
1.04 |
1.32 |
|
TIME INTEREST EARNED |
TIMES |
(37.12) |
24.90 |
12.65 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(7.90) |
40.62 |
|
|
OPERATING PROFIT |
% |
(277.39) |
29.80 |
|
|
NET PROFIT |
% |
(287.38) |
62.55 |
|
|
FIXED ASSETS |
% |
30.74 |
21.66 |
|
|
TOTAL ASSETS |
% |
26.07 |
25.21 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -7.9%. Turnover has decreased from THB
4,621,033,591.00 in 2011 to THB 4,255,873,875.00 in 2012. While net profit has decreased
from THB 220,736,325.00 in 2011 to THB -413,607,308.00 in 2012. And total
assets has increased from THB 2,886,767,650.00 in 2011 to THB 3,639,445,171.00
in 2012.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
5.31 |
Deteriorated |
Industrial
Average |
12.33 |
|
Net Profit Margin |
(9.72) |
Deteriorated |
Industrial
Average |
(0.40) |
|
Return on Assets |
(11.36) |
Deteriorated |
Industrial
Average |
0.66 |
|
Return on Equity |
(41.28) |
Deteriorated |
Industrial Average |
1.58 |
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 5.31%. 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 -9.72%.
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 -11.36%.
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 -41.28%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
0.38 |
Risky |
Industrial
Average |
2.49 |
|
Quick Ratio |
0.30 |
|
|
|
|
Cash Conversion Cycle |
(75.22) |
|
|
|
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 0.38 times in 2012, decreased from 0.61 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 0.3 times in 2012,
decreased from 0.54 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 -76 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.72 |
Acceptable |
Industrial
Average |
0.55 |
|
Debt to Equity Ratio |
2.63 |
Risky |
Industrial
Average |
1.23 |
|
Times Interest Earned |
(37.12) |
Risky |
Industrial
Average |
(1.98) |
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 -37.12 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 0.72 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 Downtrend
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
1.48 |
Impressive |
Industrial
Average |
(1.75) |
|
Total Assets Turnover |
1.17 |
Deteriorated |
Industrial
Average |
3.98 |
|
Inventory Conversion Period |
4.74 |
|
|
|
|
Inventory Turnover |
77.03 |
Impressive |
Industrial Average |
15.08 |
|
Receivables Conversion Period |
21.71 |
|
|
|
|
Receivables Turnover |
16.81 |
Impressive |
Industrial
Average |
5.92 |
|
Payables Conversion Period |
101.66 |
|
|
|
The company's Account Receivable Ratio is calculated as 16.81 and 29.55
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 2 days at the end
of 2011 to 5 days at the end of 2012. This represents a negative trend. And
Inventory turnover has decreased from 201.18 times in year 2011 to 77.03 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.17 times and 1.6
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 Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.29 |
|
|
1 |
Rs.101.36 |
|
Euro |
1 |
Rs.84.59 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.