MIRA
INFORM REPORT
|
Report Date : |
14.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
SUNFLAG
[THAILAND] LTD. |
|
|
|
|
Registered Office : |
12th Floor, Bb Building, 54 Sukhumvit 21 Road [Asoke], Klongtoey Nua, Wattana, Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2012 |
|
|
|
|
Date of Incorporation : |
03.11.1989 |
|
|
|
|
Com. Reg. No.: |
0105532105528 [Former :
10551/2532] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
manufacturer, exporter
and distributor of
polyester chips and
filament yarns such
as Pre Oriented Yarn, Partially
Oriented Yarn [POY] & Draw
Texturised Yarn [DTY]. |
|
|
|
|
No. of Employees : |
300 |
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 : |
Exists |
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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
SUNFLAG [THAILAND] LTD.
SUMMARY
ADDRESS : 12th FLOOR,
BB BUILDING,
54 SUKHUMVIT 21
ROAD [ASOKE],
KLONGTOEY NUA,
WATTANA,
BANGKOK 10110,
THAILAND
TELEPHONE :
[66] 2261-2411-6
FAX : [66] 2261-1441-2
E-MAIL ADDRESS : gugsters@loxinfo.co.th
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1989
REGISTRATION NO. : 0105532105528 [Former
: 10551/2532]
TAX ID NO. : 3101766608
CAPITAL REGISTERED : BHT.
426,250,000
CAPITAL PAID-UP : BHT.
426,250,000
SHAREHOLDER’S PROPORTION : THAI : 5.52%
FOREIGN :
94.48%
FISCAL YEAR CLOSING
DATE : MARCH 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
LALIT KUMAR, INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 300
LINES OF BUSINESS : POLYESTER CHIPS
AND FILAMENT YARNS
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
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 November 3, 1989
as a private limited company
under the name
style SUNFLAG [THAILAND]
LTD. by Thai
and foreign groups.
It is engaged in
manufacturing polyester chips
and yarns products
for both local
and overseas markets.
The
subject is an
affiliated company of Texma
Consultant Co., Ltd., in
United Arab Emirates.
Subject currently employs
approximately 300 staff.
The
subject’s operation was
granted promotional privileges
by the Board of Investment.
The
subject’s registered address
is 12th Flr.,
BB Bldg., 54 Sukhumvit
21 Road [Asoke],
Klongtoey Nua, Wattana,
Bangkok 10110, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Piya Bhushan
Bhardwaj : Chairman |
[x] |
Kenyan |
77 |
|
Mr. Lalit Kumar |
[x] |
Indian |
65 |
|
Mr. Supat Sivasriampai |
|
Thai |
68 |
|
Mr. Alok Bhardwaj |
|
British |
45 |
|
Mr. Trilok Raj
Sud |
|
Indian |
67 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Lalit Kumar
is the Managing
Director.
He is Indian
nationality with the
age of 65
years old.
Mr. Trilok Raj
Sud is
the Deputy Managing
Director and General
Manager.
He is Indian
nationality with the
age of 67 years
old.
BUSINESS OPERATIONS
The
subject’s activities are manufacturer, exporter
and distributor of
polyester chips and
filament yarns such
as Pre Oriented Yarn, Partially
Oriented Yarn [POY] & Draw
Texturised Yarn [DTY].
PRODUCTION CAPACITY
Polyester Chip : 30,000
tons/year
Pre Oriented Yarn : 2,500
tons/year
Draw Texturised Yarn : 4,500
tons/year
Polyester Filament Yarn : 3,000
tons/year
IMPORT [COUNTRIES]
30% of its
raw materials, cotton
yarn and chemicals
are imported from
India,
Hong Kong, Republic
of China, Germany,
Switzerland, Japan, and
Taiwan.
MAJOR SUPPLIERS
BASF [Thai] Ltd
: Thailand
SALES [LOCAL]
20% of its
products is sold
locally to wholesalers
and manufacturers.
EXPORT [COUNTRIES]
80% of the
products is exported
to United Kingdom,
Spain, Italy, Switzerland,
Australia, Republic of
China, Singapore, Nigeria, Kenya,
Bangladesh, Egypt, India,
Vietnam, Japan and
Pakistan.
SUBSIDIARY AND AFIFLIATED
COMPANY
The subject is not
found to have
any subsidiary or
affiliated company here
in Thailand.
LITIGATION
Bankruptcy and
Receivership
On May 16, 2007, the Central Bankruptcy Court has ordered the Company to enter into business rehabilitation and appointed the Company to be the Planner according to the lawsuit red case no. For. 12/2550. 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 [except for the right to receive the dividend] shall be vested in the Planner according to Article 90/25 of Bankruptcy Act B.E. 2483.
On February 23, 2008, the Central Bankruptcy Court has ordered to assign SCMB Co., Ltd., as a new Planner. As a result of such Court order, the power and duties of the previous Planner shall be vested in the new Planner according to Article 90/53 of Bankruptcy Act B.E. 2483.
On November 5, 2008, the Central Bankruptcy Court has approved the Company’s rehabilitation plan by SCMB Co., Ltd. as the Plan Administrator. As a result of such Court order, the power and duties of the management shall be vested in the Plan Administrator according to Article 90/59 of Bankruptcy Act B.E. 2483.
Others
The
subject has several
litigations in relation
to its normal
course of business
operation, but the
management believes that
it would not have significant
affect on the
company’s business.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom Rd.,
Silom, Bangrak, Bangkok]
The Siam Commercial Bank
Public Co., Ltd.
[Chidlom Office :
1060 New Petchaburi
Rd., Makasan, Rajthewee,
Bangkok]
[Head Office
: 9 Ratchadapisek
Rd., Ladyao, Jatujak,
Bangkok]
Kasikornbank Public Co.,
Ltd.
[Head Office
: 1 Kasikorn
Lane, Rajburana Rd.,
Rajburana, Bangkok]
TMB Bank Public
Co., Ltd.
EMPLOYMENT
The subject employs
approximately 300 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is
rented for operating
office at the
heading address. Premise
is located in a commercial
area.
The factory is
located at 1/30 Moo 5,
Room 44-49, Rojana
Industrial Park, Rojana
Road, T. Kanham, A. U-Thai,
Ayutthaya 13210.
[Land area :
59,200 sq. m., Building
area : 24,000
sq. m.]
Tel: [66] 35
226-812, 35 330-104,
Fax: [66] 35
226-812.
COMMENT
The
global economic slump
and textile industry
slowdown over the
last few years
has turned the
market intense competition
and sliding prices.
However, the company is
still running its
full capacity to
serve industrial expansion.
The
company anticipates of
growing strong in long term
prospect.
FINANCES INFORMATION
The capital was
initially registered at
Bht. 5 million, divided
into 50,000 shares
of Bht. 100
each.
The capital was
increased and decreased
later as follows:
Bht. 500
million on April
27, 1990
Bht. 750
million on June
28, 1995
Bht. 850
million on March
26, 1997
Bht. 925
million on August
20, 1997
Bht. 965
million on March
24, 2000
Bht. 1,025
million on August
24, 2001
Bht. 51.25 million on
November 29, 2010
[decreased]
Bht. 426.25 million on
December 7, 2010
The latest registered
capital was increased
to Bht. 426,250,000 divided into
4,262,500 shares of
Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE :
[as at July
24, 2013] at
Bht. 426,250,000 of
capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Texma Consultant Co.,
Ltd. Nationality: Dubai Address : United
Arab Emirates |
2,500,000 |
58.65 |
|
Mr. Piya Bhushan
Bhardwaj Nationality: Kenyan Address : New
Delhi, India |
1,280,000 |
30.03 |
|
Broadford Investments Ltd. Nationality: Swiss Address : Geneva,
Switzerland |
244,625 |
5.74 |
|
Mr. Songkram
Chewaprawatdamrong Nationality: Thai Address : 55
Moo 6, Samaedam, Bangkhunthien, Bangkok |
47,500 |
1.11 |
|
Mr. Somwang
Boonthongroongtawee Nationality: Thai Address : 10/72
Moo 7, Thakam, Bangkhunthien, Bangkok |
40,000 |
0.94 |
|
Mr. Supat Sivasriampai Nationality: Thai Address : 157-159
Vanich 1 Rd.,
Chakrawad,
Samphantawong, Bangkok |
28,682 |
0.67 |
|
Mr. Kasem Sivasriampai Nationality: Thai Address : 109
Sukhumvit 12 Rd.,
Klongtoey, Bangkok |
28,681 |
0.67 |
|
Mr. Charoen Sivasriampai Nationality: Thai Address : 781/1
Mahajak Rd., Chakrawad,
Samphantawong, Bangkok |
28,681 |
0.67 |
|
Mr. Pracha Sivasriampai Nationality: Thai Address : 109
Sukhumvit 12 Rd.,
Klongtoey, Bangkok |
28,681 |
0.67 |
TMB Bank Public
Co., Ltd.
Nationality: Thai Address : 300
Phaholyothin Rd., Ladyao,
Jatujak, Bangkok |
21,250 |
0.50 |
|
Krisana Holding
Co., Ltd. Nationality: Thai Address : 185-189
Rajawong Rd., Chakrawad,
Samphantawong, Bangkok |
11,900 |
0.28 |
|
Mr. Lalit Kumar Nationality: Indian Address : 97/32
Soi Sukhumvit 24,
Sukhumvit Rd.,
Klongton, Klongtoey, Bangkok
|
2,500 |
0.07 |
Total shareholders : 12
Share Structure [as
at July 24,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
8 |
235,375 |
5.52 |
|
Foreign |
4 |
4,027,125 |
94.48 |
|
Total |
12 |
4,262,500 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.:
Ms. Nongnuch Ouitrakul No.
2241
BALANCE
SHEET [BAHT]
The
latest financial figures
published for March
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash
Equivalent |
564,964,989 |
99,915,254 |
32,532,403 |
|
Trade Accounts & Other Receivable |
855,833,690 |
545,152,526 |
565,059,376 |
|
Inventories |
40,873,660 |
224,169,114 |
298,595,422 |
|
Other Current Assets |
6,315,779 |
63,814,854 |
133,504,869 |
|
|
|
|
|
|
Total Current Assets
|
1,467,988,118 |
933,051,748 |
1,029,692,070 |
|
Cash at Bank under Commitment |
- |
5,208,249 |
2,000,000 |
|
Fixed Assets |
471,804,138 |
1,281,743,085 |
1,501,930,968 |
|
Intangible Assets |
- |
230,188 |
329,708 |
|
Other Non-current Assets |
246,188 |
253,115 |
267,566 |
|
Total Assets |
1,940,038,444 |
2,220,486,385 |
2,534,220,312 |
LIABILITIES & SHAREHOLDERS’ EQUITY
[BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term
Loan from Financial Institution |
5,968,080 |
- |
260,593,156 |
|
Trade Accounts and
Other Payable |
20,828,985 |
460,671,463 |
105,277,221 |
|
Current Portion of
Debt Repayment under Rehabilitation Plan
|
- |
- |
82,310,000 |
|
Other Current Liabilities |
76,071 |
701,559 |
55,781,177 |
|
|
|
|
|
|
Total Current Liabilities |
26,873,136 |
461,373,022 |
503,961,554 |
|
Financial Institution Payable
according to the
Rehabilitation Plan |
- |
- |
2,626,471,046 |
|
Loan from Director
Payable according to the
Rehabilitation Plan |
- |
- |
125,000,005 |
|
Long-term Loan from Financial Institutions |
231,000,000 |
- |
- |
|
Employee Benefits Obligation |
18,240,662 |
- |
- |
|
Total Liabilities |
276,113,798 |
461,373,022 |
3,255,432,605 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 4,262,500 shares in 2012
& 2011; 10,250,000 shares in 2010 |
426,250,000 |
426,250,000 |
1,025,000,000 |
|
|
|
|
|
|
Capital Paid |
426,250,000 |
426,250,000 |
1,025,000,000 |
|
Premium on Share Capital |
11,000,000 |
11,000,000 |
11,000,000 |
|
Statutory Reserve |
- |
- |
242,091,604 |
|
Surplus on Revaluation of
Assets |
- |
178,807,282 |
- |
|
Retained Earning-
Unappropriated |
1,226,674,646 |
1,143,056,081 |
[1,999,303,897] |
|
Total Shareholders' Equity |
1,663,924,646 |
1,759,113,363 |
[721,212,293] |
|
Total Liabilities &
Shareholders' Equity |
1,940,038,444 |
2,220,486,385 |
2,534,220,312 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
1,871,901,416 |
3,185,950,936 |
2,675,433,513 |
|
Gain on Debt |
- |
2,223,781,046 |
- |
|
Insurance Claims |
1,111,596,392 |
- |
- |
|
Reversal of Revaluation Decrease |
93,263,719 |
- |
- |
|
Interest Income |
- |
- |
1,029,471 |
|
Other Income |
24,870,585 |
16,413,704 |
36,987,899 |
|
Total Revenues |
3,101,632,112 |
5,426,145,686 |
2,713,450,883 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,697,223,891 |
2,963,958,550 |
2,684,420,841 |
|
Selling Expenses |
88,976,383 |
174,576,741 |
123,644,896 |
|
Administrative Expenses |
110,466,907 |
82,408,533 |
74,921,004 |
|
Loss on Exchange
Rate |
1,099,420,923 |
- |
16,808,448 |
|
Total Expenses |
2,996,088,104 |
3,220,943,824 |
2,899,795,189 |
|
|
|
|
|
|
Loss before Interest
Expense |
105,544,008 |
2,205,201,862 |
[186,344,306] |
|
Interest Expenses |
[21,925,443] |
[36,591,884] |
[33,061,963] |
|
|
|
|
|
|
Net Profit / [Loss] |
83,618,565 |
2,168,609,978 |
[219,406,269] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
54.63 |
2.02 |
2.04 |
|
QUICK RATIO |
TIMES |
52.87 |
1.40 |
1.19 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.97 |
1.73 |
1.78 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.96 |
1.00 |
1.06 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
8.79 |
27.61 |
40.60 |
|
INVENTORY TURNOVER |
TIMES |
41.52 |
13.22 |
8.99 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
166.88 |
89.48 |
77.09 |
|
RECEIVABLES TURNOVER |
TIMES |
2.19 |
4.08 |
4.73 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
4.48 |
56.73 |
14.31 |
|
CASH CONVERSION CYCLE |
DAYS |
171.19 |
60.35 |
103.37 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
90.67 |
133.28 |
100.34 |
|
SELLING & ADMINISTRATION |
% |
10.65 |
11.56 |
7.42 |
|
INTEREST |
% |
1.17 |
1.65 |
1.24 |
|
GROSS PROFIT MARGIN |
% |
75.03 |
110.72 |
1.09 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.64 |
99.16 |
(6.97) |
|
NET PROFIT MARGIN |
% |
4.47 |
97.52 |
(8.20) |
|
RETURN ON EQUITY |
% |
5.03 |
123.28 |
- |
|
RETURN ON ASSET |
% |
4.31 |
97.66 |
(8.66) |
|
EARNING PER SHARE |
BAHT |
19.62 |
508.76 |
(21.41) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.14 |
0.21 |
1.28 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.17 |
0.26 |
(4.51) |
|
TIME INTEREST EARNED |
TIMES |
4.81 |
60.26 |
(5.64) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(15.82) |
(16.88) |
|
|
OPERATING PROFIT |
% |
(95.21) |
(1,283.40) |
|
|
NET PROFIT |
% |
(96.14) |
1,088.40 |
|
|
FIXED ASSETS |
% |
(63.19) |
(14.66) |
|
|
TOTAL ASSETS |
% |
(12.63) |
(12.38) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -15.82%. Turnover has decreased from THB
2,223,781,046.00 in 2011 to THB 1,871,901,416.00 in 2012. While net profit has decreased
from THB 2,168,609,978.00 in 2011 to THB 83,618,565.00 in 2012. And total
assets has decreased from THB 2,220,486,385.00 in 2011 to THB 1,940,038,444.00
in 2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
75.03 |
Impressive |
Industrial Average |
2.56 |
|
Net Profit Margin |
4.47 |
Impressive |
Industrial Average |
1.92 |
|
Return on Assets |
4.31 |
Impressive |
Industrial Average |
2.00 |
|
Return on Equity |
5.03 |
Impressive |
Industrial Average |
3.64 |
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 75.03%. 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
4.47%, 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
4.31%, 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 5.03%, 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 |
54.63 |
Impressive |
Industrial Average |
1.29 |
|
Quick Ratio |
52.87 |
|
|
|
|
Cash Conversion Cycle |
171.19 |
|
|
|
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 54.63 times in 2012, increased from 2.02 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 52.87 times in 2012,
increased from 1.4 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 172 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.14 |
Impressive |
Industrial Average |
0.47 |
|
Debt to Equity Ratio |
0.17 |
Impressive |
Industrial Average |
0.87 |
|
Times Interest Earned |
4.81 |
Impressive |
Industrial Average |
- |
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 4.82 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 0.14 less than 0.5, most of the company's
assets are financed through equity.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Uptrend
Times Interest Earned Stable
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.97 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.96 |
Satisfactory |
Industrial Average |
1.05 |
|
Inventory Conversion Period |
8.79 |
|
|
|
|
Inventory Turnover |
41.52 |
Impressive |
Industrial Average |
5.50 |
|
Receivables Conversion Period |
166.88 |
|
|
|
|
Receivables Turnover |
2.19 |
Satisfactory |
Industrial Average |
2.33 |
|
Payables Conversion Period |
4.48 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.19 and 4.08 in
2012 and 2011 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate revenue. A lower ratio may indicate
over extension and collection problems. Conversely, a higher ratio may indicate
an overtly stringent policy. In this case, the company's A/R ratio in 2012
decreased from 2011. This would suggest the company had deteriorated in the
management of its debt collections.
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has decreased from 28 days at the
end of 2011 to 9 days at the end of 2012. This represents a positive trend. And
Inventory turnover has increased from 13.22 times in year 2011 to 41.52 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.96 times and 1
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 Stable
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.52 |
|
UK Pound |
1 |
Rs.101.48 |
|
Euro |
1 |
Rs.84.11 |
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.