MIRA
INFORM REPORT
|
Report Date : |
07.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
FEMINA LACE
INTERNATIONAL CO., LTD. |
|
|
|
|
Registered Office : |
Navanakorn
Industrial Estate, 60/31-60/32
Moo 19, Phaholyothin Road,
T. Klongnueng, A.
Klongluang, Pathumthani 12120,
|
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
10.05.2004 |
|
|
|
|
Com. Reg. No.: |
0105547062803 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged
in manufacturing and
marketing wide range
of lace products
for apparels, brassiere,
lingerie and panties
productions. |
|
|
|
|
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 : |
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 – 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. 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 recession severely cut Thailand's exports, with most sectors experiencing double-digit drops. In late 2011 Thailand's recovery was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. The government 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 following seven years
|
Source
: CIA |
Company name and address
FEMINA LACE INTERNATIONAL CO., LTD.
SUMMARY
BUSINESS
ADDRESS : NAVANAKORN INDUSTRIAL
ESTATE,
60/31-60/32 MOO
19, PHAHOLYOTHIN ROAD,
T.
KLONGNUENG, A. KLONGLUANG,
PATHUMTHANI 12120,
THAILAND
TELEPHONE : [66] 2529-0766-7,
2908-7254-5
FAX : [66] 2529-0765,
2908-7202
E-MAIL
ADDRESS : info@feminalace.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2004
REGISTRATION
NO. : 0105547062803 [Former : 0107554709286]
TAX
ID NO. : 3031359024
CAPITAL REGISTERED : BHT. 501,750,000
CAPITAL PAID-UP : BHT.
462,609,050
SHAREHOLDER’S PROPORTION : THAI :
96.96%
INDIAN
: 3.04%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
AMORN KEERATINARANG, THAI
MANAGING DIRECTOR
AND FACTORY
MANAGER
NO.
OF STAFF : 300
LINES
OF BUSINESS : LACE
PRODUCTS
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
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 May 10, 2004
as a private
limited company by a merger
of 4 companies:
“FEMINA LACE INTERNATIONAL CO.,
LTD.”, “SKY BUTTERFLY CO., LTD.”,
“FEMINA LACE [THAILAND]
CO., LTD.” and
“TRONIC LACE CO.,
LTD.” In response
to this, the
new company’s name
style is called
“FEMINA LACE INTERNATIONAL
CO., LTD.” The
subject’s business objective
is to manufacture
and market wide
range of lace
products.
Its
lace products have
been tested and
certified by Oko-Tex
in Switzerland, which is
now recognized as
the most important
eco-label in the world
today. It currently employs approximate
300 staff.
The
subject’s registered address
is Navanakorn Industrial
Estate, 60/31-60/32 Moo
19, 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. Amorn Keeratinarang |
|
Thai |
69 |
|
Mrs. Surin Gor Keeratinarang |
|
Thai |
64 |
|
Ms. Rojana Narang |
|
Thai |
44 |
|
Mr. Prateepsingh Narang |
|
Thai |
40 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Amorn Keeratinarang is
the Managing Director & Factory Manager.
He is Thai
nationality with the
age of 69
years old.
Mrs. Surin Gor Keeratinarang is
the Deputy Managing
Director.
She is Thai
nationality with the
age of 64
years old.
Ms. Rojana Narang is
the Sales & Marketing Manager.
She is Thai
nationality with the
age of 44
years old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
and marketing wide
range of lace
products for apparels,
brassiere, lingerie and
panties productions.
BRAND NAME
“FEMINA”
IMPORT
Some of
raw materials, specialized natural and
synthetic fiber are
imported from Germany,
France, Switzerland, Republic
of China, India
and Japan.
SALES
20% of the
products is sold
locally by wholesale
to manufacturers.
EXPORT
80% of
the products is
exported to United
Kingdom, France, Germany,
Indonesia,
Hong Kong,
Republic of China,
Taiwan, Japan, Singapore,
United States of
America,
South Africa,
Australia, India, Laos,
Myanmar, Italy, Sweden,
Switzerland and other
countries.
MAJOR CUSTOMER
Femina Lace
Trading [Shenzhen] Co.,
Ltd. : Republic
of China
RELATED COMPANY
Femina Lace Dyeworks
Co., Ltd.
Business Type : Fabric
dyeing service
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
L/C at sight
or T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
300 office staff
and factory workers.
LOCATION
DETAILS
The
premise is rented
for administrative office
and factory I at the heading
address. Premise is
located in industrial
area.
Factory
II is located
at 197 Moo
5, T. Had-arsa, A. Sappaya,
Chainat 17150.
COMMENT
The
subject is one of
the leading lace
manufacturers in Asia.
Its core business
is the production of
high quality lace
for the intimate
apparel industry. It
creates a high
quality product with
innovative designs through
dyeing and finishing
of the final
product.
The
subject currently collaborates
with leading international brands
and retailers in the Asia
Pacific Region, Europe
and USA.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht.
411,750,000 divided into
4,117,500 shares of
Bht. 100 each.
The
capital was increased
as follows:
Bht. 431,750,000
on August
29, 2006
Bht. 501,750,000
on December
27, 2007
The
latest registered capital
was increased to
Bht. 501,750,000 divided
into 5,017,500 shares
of Bht. 100
each.
THE
SHAREHOLDERS LISTED WERE :
[as at April
30, 2013] at
Bht.
462,609,050
of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Amorn Keeratinarang Nationality: Thai Address : 35
Sukhumvit 59 Rd.,
Klongtonnua,
Wattana, Bangkok |
2,382,010 |
47.47 |
|
Mrs. Surin Gor Keeratinarang Nationality: Thai Address : 59/47
Sukhumvit 26 Rd.,
Klongton,
Klongtoey, Bangkok |
946,965 |
18.87 |
|
Ms. Rojana Narang Nationality: Thai Address : 59/47
Sukhumvit 26 Rd.,
Klongton, Klongtoey, Bangkok |
817,091 |
16.28 |
|
Mr. Prateepsingh Narang Nationality: Thai Address : 35
Sukhumvit 59 Rd.,
Klongtonnua,
Wattana, Bangkok |
718,755 |
14.33 |
|
Mr. Zadar Singh Property Nationality: Indian Address : 21/39
Sukhumvit 24 Rd.,
Klongton,
Klongtoey, Bangkok |
152,679 |
3.05 |
Total Shareholders : 5
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
4,864,821 |
96.96 |
|
Foreign-Indian |
1 |
152,679 |
3.04 |
|
Total |
5 |
5,017,500 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Chantra Wongsri-udomporn No.
4998
BALANCE SHEET [BAHT]
The latest financial figures published
as at December 31,
2012, 2011 &
2010 were:
ASSETS
|
Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash in hand
& at Bank
|
6,195,805.44 |
8,289,363.02 |
6,365,763.12 |
|
Cash at Bank under
Commitment |
225,922,293.75 |
- |
- |
|
Trade Accounts and
Other Receivable |
57,930,882.08 |
102,980,102.07 |
97,775,636.50 |
|
Insurance Receivable |
42,222,261.16 |
377,885,247.30 |
- |
|
Short-term Lending to
Related Company |
1,527,043.33 |
5,437,018.05 |
5,203,850.55 |
|
Inventories |
217,910,648.72 |
226,981,290.63 |
329,510,463.22 |
|
Other Current Assets
|
3,210,905.53 |
4,277,905.53 |
5,833,084.24 |
|
|
|
|
|
|
Total Current Assets
|
554,919,840.01 |
725,850,926.60 |
444,688,797.63 |
|
Long-term Lending to
Related Company |
- |
- |
5,437,018.05 |
|
Fixed Assets |
126,194,007.26 |
86,768,023.10 |
453,370,444.21 |
|
Intangible Assets |
273,574.08 |
635,339.74 |
1,302,428.99 |
|
Other Non-current Assets |
228,912.00 |
694,600.00 |
668,450.00 |
|
Total Assets |
681,616,333.35 |
813,948,884.44 |
905,467,138.88 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
92,400,650.76 |
194,285,438.40 |
181,018,516.40 |
|
Trade Accounts and
Other Payable |
17,121,788.84 |
86,962,831.20 |
29,276,319.14 |
|
Short-term Loan from Related
Company |
45,000,000.00 |
- |
- |
|
Short-term Loan from Directors |
30,280,000.00 |
30,280,000.00 |
33,280,000.00 |
|
Current Portion of
Long-term Loan from Financial
Institution |
- |
15,204,000.00 |
25,044,000.00 |
|
Current Portion of Hire-purchase Contract Liabilities
|
- |
29,600.00 |
164,872.40 |
|
Current Portion of
Long-term Loan Restructuring Agreement. |
20,300,000.00 |
- |
- |
|
Purchase Payable - Fixed Assets |
- |
- |
33,576.60 |
|
Accrued Interest |
- |
- |
32,604,978.63 |
|
Other Current Liabilities |
793,445.19 |
837,025.67 |
13,758,305.19 |
|
|
|
|
|
|
Total Current Liabilities |
205,895,884.79 |
327,598,895.27 |
315,180,568.36 |
|
Long-term Loan from Financial Institution
|
- |
442,015,464.69 |
448,219,464.69 |
|
Long-term Loan and Accrued
Interest Restructuring Agreement |
292,231,159.50 |
- |
- |
|
Hire-purchase Contract
Liabilities |
3,077,750.00 |
- |
29,600.00 |
|
Total Liabilities |
501,204,794.29 |
769,614,359.96 |
763,429,633.05 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value Authorized & issued share capital 5,017,500 shares
|
501,750,000.00 |
501,750,000.00 |
501,750,000.00 |
|
|
|
|
|
|
Capital Paid |
462,609,050.00 |
462,609,050.00 |
462,609,050.00 |
|
Retained Earning - Unappropriated [Deficit] |
[282,197,510.94] |
[418,274,525.52] |
[320,571,544.17] |
|
Total Shareholders' Equity |
180,411,539.06 |
44,334,524.48 |
142,037,505.83 |
|
Total Liabilities & Shareholders' Equity |
681,616,333.35 |
813,948,884.44 |
905,467,138.88 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
288,073,990.94 |
422,602,688.42 |
510,036,145.95 |
|
Gain on Exchange Rate |
372,410.88 |
2,687,997.91 |
2,525,807.98 |
|
Gain on Restructuring Agreement |
18,340,468.72 |
- |
- |
|
Compensation from Flood Incident |
256,964,991.54 |
377,885,247.30 |
- |
|
Other Income |
7,998,243.29 |
9,755,577.95 |
7,970,469.05 |
|
Total Revenues |
571,750,105.37 |
812,931,511.58 |
520,532,422.98 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
278,738,745.30 |
371,951,269.14 |
389,010,883.66 |
|
Selling Expenses |
31,819,002.42 |
42,034,671.00 |
45,464,967.84 |
|
Administrative Expenses |
87,516,507.99 |
68,471,025.64 |
85,563,028.71 |
|
Loss on Inventories
Damage from Flood Incident
|
- |
69,675,229.83 |
- |
|
Loss on Fixed
Assets Damaged from Flood Incident
|
- |
312,885,247.30 |
- |
|
Total Expenses |
398,074,255.71 |
865,017,442.91 |
520,038,880.21 |
|
|
|
|
|
|
Profit / [Loss] before Financial
Cost |
173,675,849.66 |
[52,085,931.33] |
493,542.77 |
|
Financial Cost |
[37,598,835.08] |
[45,617,050.02] |
[45,773,963.55] |
|
|
|
|
|
|
Net Profit / [Loss] |
136,077,014.58 |
[97,702,981.35] |
[45,280,420.78] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.70 |
2.22 |
1.41 |
|
QUICK RATIO |
TIMES |
1.62 |
1.51 |
0.35 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.28 |
4.87 |
1.12 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.42 |
0.52 |
0.56 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
285.35 |
222.74 |
309.17 |
|
INVENTORY TURNOVER |
TIMES |
1.28 |
1.64 |
1.18 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
73.40 |
88.94 |
69.97 |
|
RECEIVABLES TURNOVER |
TIMES |
4.97 |
4.10 |
5.22 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
22.42 |
85.34 |
27.47 |
|
CASH CONVERSION CYCLE |
DAYS |
336.33 |
226.35 |
351.67 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
96.76 |
88.01 |
76.27 |
|
SELLING & ADMINISTRATION |
% |
41.43 |
26.15 |
25.69 |
|
INTEREST |
% |
13.05 |
10.79 |
8.97 |
|
GROSS PROFIT MARGIN |
% |
101.71 |
104.35 |
25.79 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
60.29 |
(12.33) |
0.10 |
|
NET PROFIT MARGIN |
% |
47.24 |
(23.12) |
(8.88) |
|
RETURN ON EQUITY |
% |
75.43 |
(220.38) |
(31.88) |
|
RETURN ON ASSET |
% |
19.96 |
(12.00) |
(5.00) |
|
EARNING PER SHARE |
BAHT |
29.42 |
(21.12) |
(9.79) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.74 |
0.95 |
0.84 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.78 |
17.36 |
5.37 |
|
TIME INTEREST EARNED |
TIMES |
4.62 |
(1.14) |
0.01 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(31.83) |
(17.14) |
|
|
OPERATING PROFIT |
% |
(433.44) |
(10,653.48) |
|
|
NET PROFIT |
% |
239.28 |
(115.77) |
|
|
FIXED ASSETS |
% |
45.44 |
(80.86) |
|
|
TOTAL ASSETS |
% |
(16.26) |
(10.11) |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -31.83%. Turnover has decreased from THB
422,602,688.42 in 2011 to THB 288,073,990.94 in 2012. While net profit has
increased from THB -97,702,981.35 in 2011 to THB 136,077,014.58 in 2012. And
total assets has decreased from THB 813,948,884.44 in 2011 to THB
681,616,333.35 in 2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
101.71 |
Impressive |
Industrial
Average |
26.55 |
|
Net Profit Margin |
47.24 |
Impressive |
Industrial
Average |
1.01 |
|
Return on Assets |
19.96 |
Impressive |
Industrial
Average |
1.28 |
|
Return on Equity |
75.43 |
Impressive |
Industrial
Average |
2.40 |
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 101.71%. 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 47.24%, 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
19.96%, 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 75.43%, 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 Downtrend
Return on Equity Downtrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
2.70 |
Impressive |
Industrial
Average |
1.48 |
|
Quick Ratio |
1.62 |
|
|
|
|
Cash Conversion Cycle |
336.33 |
|
|
|
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 2.7 times in 2012, increased from 2.22 times, then it is generally
considered to have good short-term financial strength. When compared with the
industry average, the ratio of the company was higher, indicated that company
was an efficient operator in a dominant position within its industry.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 1.62 times in 2012,
increased from 1.51 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 337 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.74 |
Acceptable |
Industrial
Average |
0.51 |
|
Debt to Equity Ratio |
2.78 |
Risky |
Industrial
Average |
1.06 |
|
Times Interest Earned |
4.62 |
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 4.62 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 0.74 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.28 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.42 |
Deteriorated |
Industrial
Average |
1.27 |
|
Inventory Conversion Period |
285.35 |
|
|
|
|
Inventory Turnover |
1.28 |
Deteriorated |
Industrial
Average |
4.90 |
|
Receivables Conversion Period |
73.40 |
|
|
|
|
Receivables Turnover |
4.97 |
Impressive |
Industrial
Average |
2.71 |
|
Payables Conversion Period |
22.42 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.97 and 4.10 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 increased from 223 days at the
end of 2011 to 285 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 1.64 times in year 2011 to 1.28 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.42 times and 0.52
times in 2012 and 2011 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.32 |
|
|
1 |
Rs.102.54 |
|
Euro |
1 |
Rs.84.19 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIS |
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.