MIRA
INFORM REPORT
|
Report Date : |
19.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
TRIUMPH MOTORCYCLES
[THAILAND] LTD. |
|
|
|
|
Registered Office : |
700/801 Moo 1,
Amata Nakorn Industrial
Estate, T. Panthong, A. Panthong, Chonburi
20160 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
30.06.2013 |
|
|
|
|
Date of Incorporation : |
15.05.2001 |
|
|
|
|
Com. Reg. No.: |
0115544003431 [Former : SOR
POR. 10436] |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
manufacturer
and exporter of motorcycle,
four-stroke engine type
with size of 500 cc.
up engines, with
the production capacity
at approximately 60,000
units per annum,
and motorcycle engines [four-stroke engine]
with the production
capacity of 80,000
sets per annum,
as well as
plastic and metal
motorcycle components such
as frame, steel
pipe, under its
own brand “TRIUMPH”. |
|
|
|
|
No of Employees : |
approximately
900 [office staff
and factory workers] |
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 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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
TRIUMPH MOTORCYCLES
[THAILAND] LTD.
SUMMARY
BUSINESS
ADDRESS : AMATA NAKORN
INDUSTRIAL ESTATE,
700/801
MOO 1, T. PANTHONG,
A. PANTHONG,
CHONBURI
20160, THAILAND
TELEPHONE : [66] 38
469-800
FAX :
[66] 38
454-033
E-MAIL
ADDRESS : jurirach.l@triumph.co.uk
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2001
REGISTRATION
NO. : 0115544003431 [Former
: SOR POR.
10436]
TAX
ID NOP. : 3030290564
CAPITAL REGISTERED : BHT. 1,175,000,000
CAPITAL PAID-UP : BHT.
1,175,000,000
SHAREHOLDER’S PROPORTION : BRITISH :
100%
FISCAL YEAR CLOSING DATE : JUNE
30
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PETER JOHN COATES,
BRITISH
MANAGING DIRECTOR
NO.
OF STAFF : 900
LINES
OF BUSINESS : MOTORCYCLE PARTS
MANUFACTURER AND
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 May
15, 2001 as
a private limited company
under the name
style TRIUMPH MOTORCYCLES [THAILAND] LTD. by
British groups. The subject was
granted a promotional
privilege from Board
of Investment [BOI]
for its production
process. It currently
employs approximate 900
staff.
It is a
subsidiary of TRIUMPH
MOTORCYCLES [OVERSEAS] LIMITED,
United Kingdom, initially manufacture
motorcycle parts for
export markets.
The subject’s registered
address was initially
on 27th Floor,
Bangkok City Tower, 179/114-116 South
Sathorn Rd., Tungmahamek, Sathorn,
Bangkok 10120.
Later the subject’s registered
address was relocated at 700/485 Moo 2, Amata Nakorn Industrial Estate, T.
Bankao, A. Panthong, Chonburi
20160.
On March 22,
2012, its registered
address was finally
relocated at 700/801
Moo 1, Amata
Nakorn Industrial Estate,
T. Panthong, A. Panthong, Chonburi
20160, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. John Stuart
Bloor |
|
British |
70 |
|
Mr. John Lambert
Eastham |
|
British |
62 |
|
Mr. Dine Shkumar Ishwerlal Khushalbhai
Mehta |
|
British |
62 |
|
Mr. Stephen John
Sargent |
|
British |
45 |
|
Mrs. Somporn Juangroongruangkit |
|
Thai |
64 |
|
Ms. Jurirach Likhitangsuvat |
[x] |
Thai |
52 |
|
Mr. Mark Fensome |
[x] |
British |
57 |
|
Mr. Garry George
Clarke |
|
British |
54 |
|
Mr. Peter John
Coates |
[x] |
British |
54 |
|
Mr. Carl Anthony
Smith |
|
British |
58 |
AUTHORIZED PERSON
A.
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
B.
Anyone
of the directors
[x] signs in case of
contacting with government
sector on
behalf of the
subject with company’s affixed.
MANAGEMENT
Mr. Peter John
Coates is the
Managing Director.
He is British
nationality with the
age of 54
years old.
Mr. Carl Anthony
Smith is the
Operations Director.
He is British
nationality with the
age of 58
years old.
Ms. Jurirach Likhitangsuvat is
the General Affairs
Director.
She is Thai
nationality with the
age of 52
years old.
Mr. Steve Warnel
is the Plant
Manager.
He is British
nationality.
Mr. Mark Fensome is
the Financial Manager.
He is British
nationality with the
age of 57
years old.
Mrs. Choojit Ratanatikul
is the Account Manager.
She is Thai
nationality.
Mr. Tanathep
Theprattanathatkul is the
Human Resources Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activities
are manufacturer and
exporter of motorcycle,
four-stroke engine type
with size of 500 cc.
up engines, with
the production capacity
at approximately 60,000
units per annum,
and motorcycle engines [four-stroke engine]
with the production
capacity of 80,000
sets per annum,
as well as
plastic and metal
motorcycle components such as
frame, steel pipe,
under its own
brand “TRIUMPH”.
The motorcycle models
are as follows:
Adventure
- Tiger
800 & 800XC
- Tiger
Explorer
Classic
- Bonneville
- Scrambler
- Thruxton
Cruisers
- America
- Rocket III
- Speed
Master
- Thunderbird
Roadsters
- Speed
Triple
- Street
Triple
Supersports
- Daytona
Touring
- Trophy
SE
PURCHASE
70% of raw materials
mainly aluminum, stainless
steel and steel are
purchased from local
suppliers, the remaining
30% is imported
from suppliers in
United Kingdom, Germany, Taiwan,
Republic of China,
India, Singapore, Malaysia, Indonesia
and Japan.
MAJOR SUPPLIERS
Triumph Industries Limited
: United
Kingdom
Thai Summit Group : Thailand
Thyssenkrupp Materials [Thailand]
Co., Ltd. : Thailand
EXPORT [COUNTRY]
100%
of its products
is exported to
Triumph Motorcycles [Overseas]
Limited in United
Kingdom.
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
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.
BUSINESS TRANSACTION
The subject is not
found to have
problem on its
account receivable due
to the products
are sold to
the parent company
in United Kingdom.
BANKING
Bangkok Bank Public
Co., Ltd.
[Panthong Branch:
Sukhumvit Rd., Panthong,
Chonburi 20160]
United Overseas Bank
[Thai] Public Co.,
Ltd.
[Head Office : 690
Sukhumvit Rd., Klongton,
Klongtoey, Bangkok 10110]
HSBC Bank
[Bangkok Branch,
968 Rama 4
Rd., Silom, Bangrak,
Bangkok]
EMPLOYMENT
The subject employs
approximately 900 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is
owned for administrative office, factory III
and warehouse at the heading
address. Premise is
located in industrial
area.
Factories:
Factory I : 700/485 Moo
2, Amata Nakorn
Industrial Estate, T. Bankao,
A. Panthong,
Chonburi 20160
Factory II : 700/480
Moo 7, Amata Nakorn Industrial
Estate, T. Donhualoh,
A.
Muang, Chonburi 20000.
COMMENT
Since 1902,
Triumph has prided itself on building some of the finest
motorcycles in the world.
The subject is a manufacturer
and exporter of motorcycle
parts for motorcycle brand
TRIUMPH. With its
strengths in production
processing and high quality workforces, the subject had outstanding
performance and continued
expanding the production to
meet with world
standard of its
brand.
NOTE
Refer to your
given address at
700/480 Moo 7,
Amata Nakorn Industrial
Estate, T. Donhuaroh, A.
Muang, Chonburi 20000, please
be informed that
the above address
is the subject’s
factory II, and the
correct head office’s
address is 700/801,
Moo 1, Amata
Nakorn Industrial Estate,
T. Panthong, A. Panthong, Chonburi
20160.
FINANCIAL INFORMATION
The capital was initially
registered at Bht. 10,000,000 divided
into 100,000 shares of Bht.
100 each.
The capital was
increased later as
follows:
Bht. 700,000,000 on
January 22, 2008
Bht. 1,175,000,000
on June 26,
2009
The latest registered
capital was increased
to Bht. 1,175,000,000 divided
into 11,750,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED
WERE : [as
at October 28,
2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Triumph Motorcycles [Overseas]
Limited Nationality: British Address : Ashby Road, Measham, Swadlincote,
Derbyshire, DE12 7JP,
U.K. |
11,749,994 |
100.00 |
|
Triumph Industries Limited Nationality: British Address : Ashby Road,
Measham, Swadlincote,
Derbyshire, DE12 7JP,
U.K. |
1 |
- |
|
Triumph Motorcycles [Coventry]
Limited Nationality: British Address : Ashby Road,
Measham, Swadlincote,
Derbyshire, DE12 7JP,
U.K. |
1 |
- |
|
Bonneville Limited Nationality: British Address : Ashby Road,
Measham, Swadlincote,
Derbyshire, DE12 7JP,
U.K. |
1 |
- |
|
Bonneville Coventry Limited Nationality: British Address : Ashby Road,
Measham, Swadlincote, Derbyshire, DE12
7JP, U.K. |
1 |
- |
|
Triumph Parts and
Accessories Limited Nationality: British Address : Ashby Road,
Measham, Swadlincote,
Derbyshire, DE12 7JP,
U.K. |
1 |
- |
|
Memon Limited Nationality: British Address : Ashby Road,
Measham, Swadlincote,
Derbyshire, DE12 7JP,
U.K. |
1 |
- |
Total Shareholders : 7
Share Structure [as
at October 28,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign - British |
7 |
11,750,000 |
100.00 |
|
Total |
7 |
11,750,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Narong Pantawong No. 3315
BALANCE SHEET [BAHT]
The
latest financial figures
published for June
30, 2013, 2012 & 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash in Hand
& at Bank |
6,279,186 |
25,398,734 |
59,233,802 |
|
Trade Accounts and
Other Receivable |
996,147,178 |
1,518,458,077 |
890,074,991 |
|
Inventories |
1,244,052,133 |
1,129,675,458 |
1,071,167,895 |
|
Other Current Assets |
|
|
|
|
Refundable Value Added
Tax |
30,440,892 |
21,094,162 |
8,351,012 |
|
Advance Received
Purchase Goods |
36,145,091 |
14,557,403 |
13,535,091 |
|
Assets Held for
Sale |
- |
5,000,000 |
- |
|
Others |
49,915,838 |
31,250,246 |
28,057,344 |
|
|
|
|
|
|
Total Current Assets
|
2,362,980,318 |
2,745,434,080 |
2,070,420,135 |
|
Cash at Bank
pledged as a Collateral |
66,328,223 |
60,501,048 |
30,048,955 |
|
Fixed Assets |
2,732,242,596 |
2,304,016,112 |
2,399,072,091 |
|
Intangible Assets |
2,042,375 |
934,096 |
916,125 |
|
Other Non current
Assets |
3,344,023 |
5,031,113 |
3,984,115 |
|
Total Assets |
5,166,937,535 |
5,115,916,449 |
4,504,441,421 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Short-term Loan from Financial Institution |
370,000,000 |
370,000,000 |
596,111,000 |
|
Trade Accounts and Other
Payable |
1,830,179,937 |
2,172,841,953 |
1,438,524,928 |
|
Accrued Income Tax |
4,226,122 |
- |
- |
|
Other Current Liabilities |
5,356,904 |
4,337,561 |
4,689,335 |
|
|
|
|
|
|
Total Current Liabilities |
2,209,762,963 |
2,547,179,514 |
2,039,325,263 |
|
Long-term Loan from Related
Company |
1,500,000,000 |
1,500,000,000 |
1,500,000,000 |
|
Reserve for Long-term Employee Benefits |
4,800,000 |
3,000,000 |
- |
|
Total Liabilities |
3,714,562,963 |
4,050,179,514 |
3,539,325,263 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 11,750,000 shares
|
1,175,000,000 |
1,175,000,000 |
1,175,000,000 |
|
|
|
|
|
|
Capital Paid |
1,175,000,000 |
1,175,000,000 |
1,175,000,000 |
|
Retained Earning -
Unappropriated |
277,374,572 |
[109,263,065] |
[209,883,842] |
|
Total Shareholders' Equity |
1,452,374,572 |
1,065,736,935 |
965,116,158 |
|
Total Liabilities &
Shareholders' Equity |
5,166,937,535 |
5,115,916,449 |
4,504,441,421 |
PROFIT & LOSS ACCOUNT
|
Sales |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
7,727,325,647 |
6,744,097,113 |
5,265,119,468 |
|
Gain on Exchange
Rate |
- |
29,217,353 |
- |
|
Other Income |
26,335,805 |
12,638,249 |
7,924,248 |
|
Total Sales |
7,753,661,452 |
6,785,952,715 |
5,273,061,716 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
7,007,312,583 |
6,414,699,690 |
4,889,351,222 |
|
Selling Expenses |
1,088,566 |
2,840,563 |
7,580,691 |
|
Administrative Expenses |
307,455,322 |
231,310,393 |
210,831,100 |
|
Loss on Impairment
of Assets |
4,515,858 |
8,938,783 |
- |
|
Loss on Exchange Rate |
20,657,121 |
- |
15,690,727 |
|
Total Expenses |
7,341,029,450 |
6,657,789,429 |
5,123,453,740 |
|
|
|
|
|
|
Profit before Financial
Expenses & Income Tax |
412,632,002 |
128,163,286 |
149,607,976 |
|
Financial Expenses |
[15,386,673] |
[22,205,204] |
[27,315,195] |
|
Profit before Income Tax |
397,245,329 |
105,958,082 |
122,292,781 |
|
Income Tax |
[10,607,692] |
[5,337,305] |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
386,637,637 |
100,620,777 |
122,292,781 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.07 |
1.08 |
1.02 |
|
QUICK RATIO |
TIMES |
0.45 |
0.61 |
0.47 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.83 |
2.93 |
2.19 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.50 |
1.32 |
1.17 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
64.80 |
64.28 |
79.96 |
|
INVENTORY TURNOVER |
TIMES |
5.63 |
5.68 |
4.56 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
47.05 |
82.18 |
61.70 |
|
RECEIVABLES TURNOVER |
TIMES |
7.76 |
4.44 |
5.92 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
95.33 |
123.64 |
107.39 |
|
CASH CONVERSION CYCLE |
DAYS |
16.52 |
22.82 |
34.28 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
90.68 |
95.12 |
92.86 |
|
SELLING & ADMINISTRATION |
% |
3.99 |
3.47 |
4.15 |
|
INTEREST |
% |
0.20 |
0.33 |
0.52 |
|
GROSS PROFIT MARGIN |
% |
9.66 |
5.50 |
7.29 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.34 |
1.90 |
2.84 |
|
NET PROFIT MARGIN |
% |
5.00 |
1.49 |
2.32 |
|
RETURN ON EQUITY |
% |
26.62 |
9.44 |
12.67 |
|
RETURN ON ASSET |
% |
7.48 |
1.97 |
2.71 |
|
EARNING PER SHARE |
BAHT |
32.91 |
8.56 |
10.41 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.72 |
0.79 |
0.79 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.56 |
3.80 |
3.67 |
|
TIME INTEREST EARNED |
TIMES |
26.82 |
5.77 |
5.48 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
14.58 |
28.09 |
|
|
OPERATING PROFIT |
% |
221.96 |
(14.33) |
|
|
NET PROFIT |
% |
284.25 |
(17.72) |
|
|
FIXED ASSETS |
% |
18.59 |
(3.96) |
|
|
TOTAL ASSETS |
% |
1.00 |
13.57 |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 14.58%. Turnover has increased from THB
6,744,097,113.00 in 2012 to THB 7,727,325,647.00 in 2013. While net profit has increased
from THB 100,620,777.00 in 2012 to THB 386,637,637.00 in 2013. And total assets
has increased from THB 5,115,916,449.00 in 2012 to THB 5,166,937,535.00 in
2013.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
9.66 |
Impressive |
Industrial
Average |
- |
|
Net Profit Margin |
5.00 |
Impressive |
Industrial
Average |
4.95 |
|
Return on Assets |
7.48 |
Impressive |
Industrial
Average |
7.27 |
|
Return on Equity |
26.62 |
Impressive |
Industrial
Average |
18.77 |
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 9.66%. 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 5%
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
7.48%, 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 26.62%, 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 |
1.07 |
Impressive |
Industrial
Average |
1.06 |
|
Quick Ratio |
0.45 |
|
|
|
|
Cash Conversion Cycle |
16.52 |
|
|
|
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, decreased from 1.08 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 0.45 times in 2013,
decreased from 0.61 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 17 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.72 |
Impressive |
Industrial
Average |
0.72 |
|
Debt to Equity Ratio |
2.56 |
Acceptable |
Industrial
Average |
2.59 |
|
Times Interest Earned |
26.82 |
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 higher the percentage means that the company is using
less equity and has stronger leverage position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 26.82 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 0.72 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 Stable
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.83 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.50 |
Impressive |
Industrial
Average |
1.47 |
|
Inventory Conversion Period |
64.80 |
|
|
|
|
Inventory Turnover |
5.63 |
Satisfactory |
Industrial
Average |
6.49 |
|
Receivables Conversion Period |
47.05 |
|
|
|
|
Receivables Turnover |
7.76 |
Impressive |
Industrial
Average |
3.23 |
|
Payables Conversion Period |
95.33 |
|
|
|
The company's Account Receivable Ratio is calculated as 7.76 and 4.44 in
2013 and 2012 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate sales. 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 increased from 64 days at the
end of 2012 to 65 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 5.68 times in year 2012 to 5.63 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.5 times and 1.32
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 Stable
Total Assets Turnover Uptrend
Inventory Turnover Downtrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.86 |
|
UK Pound |
1 |
Rs.98.82 |
|
Euro |
1 |
Rs.80.72 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.