MIRA INFORM REPORT
|
Report Date : |
07.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
SRF
INDUSTRIES [THAILAND] LIMITED |
|
|
|
|
Formerly Known as: |
SRF TECHNICAL TEXTILES [THAILAND] LIMITED |
|
|
|
|
Registered Office : |
3 Map Ta Phut Industrial Estate, I-1 Road, T. Map Ta Phut, A. Muang, Rayong 21150 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
30.10.1990 |
|
|
|
|
Com. Reg. No.: |
0105533129498 [Former : 12949/2533] |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
· manufacturer of tyre reinforcing materials, specialized in tyre cord fabric for tyre industry, including dipped fabric, greige fabric, dipped cord, greige cord and yarn. · manufacturer of plastic film for packaging industry |
|
|
|
|
No. of Employees : |
500 |
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 : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
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
SRF INDUSTRIES
[THAILAND] LIMITED
[FORMER
: SRF TECHNICAL TEXTILES [THAILAND]
LIMITED]
SUMMARY
BUSINESS
ADDRESS : 3
MAP TA PHUT
INDUSTRIAL ESTATE, I-1
ROAD,
T. MAP
TA PHUT, A.
MUANG,
RAYONG 21150,
THAILAND
TELEPHONE : [66] 38
683-600-6, 683-102-3, 683-607-14
FAX :
[66] 38
683-101, 684-934
E-MAIL
ADDRESS : sales@srf.co.th
mailto:mk@srf.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1990
REGISTRATION
NO. : 0105533129498 [Former : 12949/2533]
TAX
ID NO. : 3101906448
CAPITAL REGISTERED : BHT. 100,000,300
CAPITAL PAID-UP : BHT.
100,000,300
SHAREHOLDER’S PROPORTION : FOREIGN
: 100%
FISCAL YEAR CLOSING DATE : MARCH
31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SUSHIL KAPOOR, INDIAN
CHIEF EXECUTIVE
OFFICER
NO.
OF STAFF : 500
LINES
OF BUSINESS : FABRIC TYRE
REINFORCING MATERIALS
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
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 October
30, 1990 as
a private limited
company under the initially
registered name “Thai Baroda
Industries Limited” by a
joint investment among
Thai and Indian
groups, as well as other
investors including major Thai
commercial bank/financial institution,
along with Baroda
Rayon Corporation of
India and P B
group of Thailand.
Its business objective
is to manufacture wide
range of fabric tyre
reinforcing materials [nylon tyre
cord] to both local
and overseas markets,
with promotional privileges
granted by Board
of Investment on
January 20, 1995.
In 1999 and
2000, subject achieved
an international standard
ISO 9002 and
QS 9000 certification, respectively.
On September 8, 2008, subject
became a wholly
owned subsidiary of SRF
Overseas Limited, British
Virgin Islands, then
its name was changed to SRF
TECHNICAL TEXTILES [THAILAND] LIMITED, on May 1, 2009.
On August 30,
2011, subject became
a wholly owned
subsidiary of SRF
Global B.V., of
Netherlands, and the
subject’s name was
changed to SRF
INDUSTRIES [THAILAND] LIMITED
on December 15,
2011. It currently employs approximately 500
staff.
The subject’s registered address is 3
Map Ta Phut Industrial
Estate, I-1 Rd., T. Map Ta Phut,
A. Muang, Rayong
21150, and this
is the company’s current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ashish
Bharat Ram |
[x] |
Indian |
45 |
|
Mr. Sushil
Kapoor |
[x] |
Indian |
54 |
|
Mr. Kartik
Bharat Ram |
[x] |
Indian |
42 |
|
Mr. Arun
Bharat Ram |
[x] |
Indian |
73 |
|
Mr. Sehgal
Satish |
|
Indian |
70 |
|
Mr. Prashant Mehra |
[x] |
Indian |
41 |
AUTHORIZED PERSON
Any of the
above directors [x]
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Sushil Kapoor is
the Chief Executive
Officer
He is Indian
nationality with the
age of 54
years old.
Mr. Deshpande Prasha
is the Factory
Manager.
He is Indian
nationality.
Ms. Hataichanok Matrakul is
the Sales & Marketing Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity is a manufacturer
wide range of tyre
reinforcing materials, specialized
in tyre cord
fabric for tyre
industry, including dipped
fabric, greige fabric,
dipped cord, greige
cord and yarn.
Subject also manufactures
plastic film for
packaging industry. Its
plastic film production
has been started
in July 2013.
PRODUCTION CAPACITY
Tyre Cord : 10,000 metric
tons per annum
PURCHASE
Most of raw
materials mainly capolactum are purchased
from local suppliers
and overseas in
Japan, Germany and
Republic of China.
SALES [LOCAL]
20% of the
products is sold
locally to manufacturers.
EXPORT [COUNTRY]
80% of the products is exported to India, Pakistan, Korea, Sri Lanka, Taiwan, Indonesia, Australia and Philippines.
MAJOR CUSTOMERS
Local - Bridgstone
Group
Michelin Siam
Co., Ltd.
Otani Tire
Co., Ltd.
Hihero Co., Ltd.
Siam Rubber
LP.
Siamese Tyre
Co., Ltd.
Deestone Ltd.
Inoue Rubber
[Thailand] Public CO., Ltd.
Vee Rubber
International Co., Ltd.
S.R. Tyres
Co., Ltd.
Goodyear [Thailand]
Public Company Limited
Sumitomo Rubber [Thailand]
Co., Ltd.
Overseas - Ceat Limited :
India
Apollo Tyres
Ltd. :
India
Modirubber Ltd. :
India
Ceat Kelan
International Tyres [PVT]
Ltd. : Sri Lanka
Nexen Tire
Corporation :
Korea
Loadstar [PVT]
Ltd. :
Sri Lanka
Trelleborg Lanka
[PVT] Ltd. :
Sri Lanka
Kumho Industrial
Co., Ltd. :
Korea
Hankook Tire
Co., Ltd. :
Korea
SUBSIDIARY AND AFFILIATED
COMPANY
The subject is
not found to have
any subsidiary or
affiliated company here
in Thailand.
LITIGATION
Bankruptcy and
Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the
subject found at
Legal Execution Department
for the past
five years.
Others
There are no
legal suits filed
against the subject
for the past
two years.
CREDIT
Sales are on
the credits term
of 30-60 days.
Local bills are
paid 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
The Siam Commercial
Bank Public Co.,
Ltd. : [Laemchabang
Branch]
Bangkok Bank Public
Co., Ltd.
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
approximately 500 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is owned for administrative office, factory and warehouse at the heading address. Premise is located in industrial area, in the Eastern Coast of Thailand.
Factory and Warehouse:
Factory I [Tyre Cord]
: 3 Map Ta
Phut Industrial Estate, I-1 Rd., T. Map Ta Phut,
A. Muang, Rayong
21150.
Factory II [Plastic Film]:
112 Moo 3,
Hemaraj Eastern Seaboard
Industrial Estate,
T.
Tasith, A. Pluakdaeng, Rayong
21140.
COMMENT
The company was formed in 1990 as a manufacturer of fabric tyre
cord for tyre manufactures. Its products
are quickly spread
throughout Asia and
Australia. Automotive industry
is estimated to
shrink in light of
weakening domestic
consumption and lower
economic growth.
Dipping sales of
automobile also hurt
tyre industry and
related businesses. Risk
factors include the
simmering political conflict
and a weakening
of global economy. Sluggish consumption
is expected to
take a toll on domestic
tyre sales this
year.
FINANCIAL INFORMATION
The capital was
registered at Bht. 500,000,000 divided
into 5,000,000 shares of
Bht. 100 each with
fully paid.
The capital was
increased and decreased
later as followings:
Bht. 750,000,000 on
December 25, 1992
Bht.
1,000,000,000 on August
1, 1995
Bht. 250,000,000 on
June 8, 1998
[Decreased]
Bht. 905,000,000 on
December 29, 1999
Bht. 300,000,000 on
September 5, 2008
[Decreased]
Bht. 100,000,300 on
September 8, 2008
[Decreased]
The latest
registered capital was decreased
to Bht. 100,000,300
divided into 1,000,003
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE: [as at
June 7, 2013]
|
NAME |
HOLDING |
% |
|
SRF Global B.V. Nationality: Dutch Address : Amsterdam,
Netherlands |
1,000,001 |
100.00 |
|
Mr. Kartik Bharat Ram Nationality: Indian Address : New
Delhi, India |
1 |
- |
|
Mr. Arun Bharat Ram Nationality: Indian Address : New
Delhi, India |
1 |
- |
Total Shareholders : 3
Share Structure [as at
June 7, 2013]
|
|
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
3 |
1,000,003 |
100.00 |
|
Total |
3 |
1,000,003 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC ACCOUNTANT
NO. :
Mr. Krisada Lertvana No.
4958
BALANCE SHEET [BAHT]
The latest financial figures published
as at March
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
213,396,252 |
24,429,162 |
73,578,098 |
|
Trade Accounts Receivable
|
210,775,440 |
229,221,467 |
168,518,131 |
|
Inventories |
177,841,280 |
204,107,122 |
193,355,225 |
|
Tax Refundable |
22,891,116 |
10,656,556 |
- |
|
Other Current Assets
|
8,321,023 |
10,433,436 |
15,721,241 |
|
|
|
|
|
|
Total Current Assets
|
633,225,111 |
478,847,743 |
451,172,695 |
|
|
|
|
|
|
Fixed Assets |
2,511,409,413 |
1,360,643,501 |
1,353,365,822 |
|
Other Non - current Assets |
4,250,723 |
3,801,523 |
3,802,112 |
|
Total Assets |
3,148,885,247 |
1,843,292,767 |
1,808,340,629 |
LIABILITIES & SHAREHOLDERS’
EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term
Loan from Financial Institutions |
1,702,999 |
39,925,453 |
4,124,686 |
|
Trade Accounts & Other
Payable |
530,100,445 |
378,080,474 |
372,415,778 |
|
Current Portion of
Long-term Loans from Financial Institutions |
55,300,000 |
104,400,000 |
104,400,000 |
|
Accrued Interest-Related Company |
- |
- |
5,104,839 |
|
Related Company Payable |
- |
- |
4,370,084 |
|
Short-term Loan from Parent
Company |
- |
285,094,200 |
- |
|
Short-term Loan from Other
Company |
- |
11,386,511 |
11,338,005 |
|
Other Current Liabilities |
5,234,288 |
1,832,613 |
25,667,960 |
|
|
|
|
|
|
Total Current Liabilities |
592,337,732 |
820,719,251 |
527,421,352 |
|
Long-term Loans from Financial Institutions, Net
of Current Portion |
1,042,033,864 |
205,300,000 |
309,700,000 |
|
Long-term Loan from Parent Company |
768,007,248 |
191,523,495 |
188,043,238 |
|
Reserve for Employee
Benefits |
16,204,653 |
13,112,408 |
14,802,507 |
|
Total Liabilities |
2,418,583,497 |
1,230,655,154 |
1,039,967,097 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,000,003 shares |
100,000,300 |
100,000,300 |
100,000,300 |
|
|
|
|
|
|
Capital Paid |
100,000,300 |
100,000,300 |
100,000,300 |
|
Surplus on Revaluation of Assets |
- |
- |
130,646,483 |
|
Retained Earnings Unappropriated
|
630,301,450 |
512,637,313 |
537,726,749 |
|
Total Shareholders' Equity |
730,301,750 |
612,637,613 |
768,373,532 |
|
Total Liabilities &
Shareholders' Equity |
3,148,885,247 |
1,843,292,767 |
1,808,340,629 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
1,966,431,148 |
2,093,323,186 |
1,710,548,681 |
|
Other Income |
|
|
|
|
Gain on Exchange Rate |
85,623,445 |
9,889,797 |
35,639,591 |
|
Others |
22,250,714 |
32,226,372 |
28,909,043 |
|
Total Revenues |
2,074,305,307 |
2,135,439,355 |
1,775,097,315 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,804,839,172 |
2,013,984,580 |
1,599,696,942 |
|
Selling Expenses |
34,860,824 |
35,372,520 |
30,031,496 |
|
Administrative Expenses |
77,776,406 |
61,020,745 |
64,832,707 |
|
Total Expenses |
1,917,476,402 |
2,110,377,845 |
1,694,561,145 |
|
Profit before Financial
Expenses |
156,828,905 |
25,061,510 |
80,536,170 |
|
Financial Expenses |
[39,164,768] |
[50,150,946] |
[54,508,320] |
|
|
|
|
|
|
Net Profit / [Loss] |
117,664,137 |
[25,089,436] |
26,027,850 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.07 |
0.58 |
0.86 |
|
QUICK RATIO |
TIMES |
0.72 |
0.31 |
0.46 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.78 |
1.54 |
1.26 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.62 |
1.14 |
0.95 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
35.97 |
36.99 |
44.12 |
|
INVENTORY TURNOVER |
TIMES |
10.15 |
9.87 |
8.27 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
39.12 |
39.97 |
35.96 |
|
RECEIVABLES TURNOVER |
TIMES |
9.33 |
9.13 |
10.15 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
107.20 |
68.52 |
84.97 |
|
CASH CONVERSION CYCLE |
DAYS |
(32.12) |
8.44 |
(4.90) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.78 |
96.21 |
93.52 |
|
SELLING & ADMINISTRATION |
% |
5.73 |
4.60 |
5.55 |
|
INTEREST |
% |
1.99 |
2.40 |
3.19 |
|
GROSS PROFIT MARGIN |
% |
13.70 |
5.80 |
10.25 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
7.98 |
1.20 |
4.71 |
|
NET PROFIT MARGIN |
% |
5.98 |
(1.20) |
1.52 |
|
RETURN ON EQUITY |
% |
16.11 |
(4.10) |
3.39 |
|
RETURN ON ASSET |
% |
3.74 |
(1.36) |
1.44 |
|
EARNING PER SHARE |
BAHT |
117.66 |
(25.09) |
26.03 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.77 |
0.67 |
0.58 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.31 |
2.01 |
1.35 |
|
TIME INTEREST EARNED |
TIMES |
4.00 |
0.50 |
1.48 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(6.06) |
22.38 |
|
|
OPERATING PROFIT |
% |
525.78 |
(68.88) |
|
|
NET PROFIT |
% |
568.98 |
(196.39) |
|
|
FIXED ASSETS |
% |
84.58 |
0.54 |
|
|
TOTAL ASSETS |
% |
70.83 |
1.93 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is -6.06%. Turnover has decreased from THB
2,093,323,186.00 in 2012 to THB 1,966,431,148.00 in 2013. While net profit has
increased from THB -25,089,436.00 in 2012 to THB 117,664,137.00 in 2013. And
total assets has increased from THB 1,843,292,767.00 in 2012 to THB
3,148,885,247.00 in 2013.
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
13.70 |
Deteriorated |
Industrial Average |
51.09 |
|
Net Profit Margin |
5.98 |
Impressive |
Industrial
Average |
3.41 |
|
Return on Assets |
3.74 |
Satisfactory |
Industrial
Average |
4.05 |
|
Return on Equity |
16.11 |
Impressive |
Industrial
Average |
6.73 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from sales 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 13.7%. 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 5.98%,
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. When compared with the
industry average, it was lower, the
company's figure is 3.74%.
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 16.11%, 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 :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.07 |
Acceptable |
Industrial
Average |
1.83 |
|
Quick Ratio |
0.72 |
|
|
|
|
Cash Conversion Cycle |
(32.12) |
|
|
|
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 1.07 times in 2013, increased from 0.58 times, then it is generally
considered to have good short-term financial strength. When compared with the
industry average, the ratio of the company was lower.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 0.72 times in 2013,
increased from 0.31 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 -33 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.77 |
Acceptable |
Industrial
Average |
0.44 |
|
Debt to Equity Ratio |
3.31 |
Risky |
Industrial
Average |
0.80 |
|
Times Interest Earned |
4.00 |
Impressive |
Industrial
Average |
(0.39) |
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 4.01 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 0.77 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 |
0.78 |
Impressive |
Industrial
Average |
(0.50) |
|
Total Assets Turnover |
0.62 |
Deteriorated |
Industrial
Average |
1.30 |
|
Inventory Conversion Period |
35.97 |
|
|
|
|
Inventory Turnover |
10.15 |
Impressive |
Industrial
Average |
5.28 |
|
Receivables Conversion Period |
39.12 |
|
|
|
|
Receivables Turnover |
9.33 |
Impressive |
Industrial
Average |
2.32 |
|
Payables Conversion Period |
107.20 |
|
|
|
The company's Account Receivable Ratio is calculated as 9.33 and 9.13 in
2013 and 2012 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate sale. 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 2013
increased from 2012. 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 37 days at the
end of 2012 to 36 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 9.87 times in year 2012 to 10.15
times in year 2013.
The company's Total Asset Turnover is calculated as 0.62 times and 1.14
times in 2013 and 2012 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.65.96 |
|
UK Pound |
1 |
Rs.102.91 |
|
Euro |
1 |
Rs.86.58 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.