MIRA INFORM REPORT
|
Report Date : |
19.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
INDORAMA POLYESTER INDUSTRIES PUBLIC COMPANY LIMITED |
|
|
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Formerly Known As : |
TUNTEX [ |
|
|
|
|
Registered Office : |
35th Floor, |
|
|
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Country : |
|
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|
|
|
Financials (as on) : |
31.12.2013 |
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|
|
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Date of Incorporation : |
16.04.1987 |
|
|
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Com. Reg. No.: |
0107537002451 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
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Line of Business : |
Manufacturer, exporter and
distributor of Polyester
Yarn products, including
Partially Oriented Yarn [POY],
Draw Textured Yarn [DTY],
Polyester Staple Fibre,
Utra-Fine Polyester Fibre,
as well as
PET plastic resin, serving customers
in the main
end use markets
of apparels, home textiles,
automotive, and non-woven
sectors with an
extensive range of
products for all
sectors. |
|
|
|
|
No of Employees : |
1,000 |
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 but correct |
|
Litigation : |
Exist |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
With a well-developed
infrastructure, a free-enterprise economy, generally pro-investment policies, and
strong export industries,
|
Source
: CIA |
Company Name
INDORAMA POLYESTER INDUSTRIES PUBLIC COMPANY LIMITED
[FORMER: TUNTEX [
SUMMARY
ADDRESS
:
35th FLOOR,
SUKHUMVIT
19,
TELEPHONE : [66] 2661-6661
FAX : [66] 2661-6664
E-MAIL : solarn@indorama-th.com
info@indorama-th.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS EATABLISHED : 1987
REGISTRATION NO. : 0107537002451 [Former : BOR MOR
JOR. 492]
TAX ID NO. : 3101440362
CAPITAL REGISTERED : BHT.
2,226,220,000
CAPITAL PAID-UP : BHT.
2,202,850,000
SHAREHOLDER’S PROPORTION : THAI :
0.16%
FOREIGN :
99.84%
FISCAL YEAR CLOSING
DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
SASHI PRAKASH KHAITAN,
INDIAN
PRESIDENT &
CHIEF EXECUTIVE OFFICER
NO. OF STAFF : 1,000
LINES OF BUSINESS : POLYESTER YARNS
MANUFACTURER, DISTRIBUTOR AND EXPORTER
|
|
|
CORPORATE PROFILE |
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was
initially established on
April 16, 1987 as a
private limited company
under the registered
name C.P.P. [
The subject received
Board of Investment
Promotion in producing
synthetic fibre such
as POY [Partially
Oriented Yarn], Staple
Fibre, Chip, DTY
[Draw Textured Yarn] and
SDY [Spin Draw Yarn]. It was
a joint venture
company among Taiwanese,
Japanese and Thai
investors.
On December 30,
2008, the subject
registered for a
change of its
name to INDORAMA POLYESTER INDUSTRIES PUBLIC COMPANY
LIMITED, and withdrawn its name
from the Stock
Exchange of Thailand
on April 30,
2009.
On July 28,
2009, Indo Poly
[Thailand] Ltd., was
taken over by
the subject, with
total amount of 1,487 million baht.
Presently, the major
shareholders are Indorama
Ventures Public Company
Limited, and Indorama
Holdings Co., Ltd., which
are holding around
64.94% and 34.62%,
of the subject’s
shares respectively. It
currently employs approximately
1,000 staff.
CERTIFICATIONS
ISO 9001, ISO 14001, OHSAS 18001,
CSR -DIW Certification, REACH compliance, Oekotex 100,
Green label, ISO 50001.
The subject’s registered
address was initially
at Room 1812,
18th Floor, B.B. Building, 54 Sukhumvit 21 Rd [Soi Asoke], Klongtoeynua, Wattana,
Bangkok 10110.
Later, the registered
address was relocated
to 35th Floor,
Ocean Tower 2,
75/92 Soi Sukhumvit
19, Asoke Rd.,
Klongtoeynua, Wattana, Bangkok
10110, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Suchada Sukphanthavorn |
|
Thai |
49 |
|
Mr. Khanit See |
|
Thai |
64 |
|
Mr. Aloke Lohia |
[x] |
Indian |
56 |
|
Mrs. Suchitra Lohia |
[x] |
Indian |
50 |
|
Mr. Sashi Prakash
Khaitan |
[x] |
Indian |
66 |
|
Mr. Ramesh Kumar
Narsingh Pura |
[x] |
Indian |
54 |
|
Mr. Vivek Kaul |
[x] |
Indian |
58 |
|
Mr. Udey Paul Singh
Gill |
|
Indian |
61 |
AUTHORIZED PERSON
Any of the mentioned directors
[x] can sign
on behalf of
the subject with
the company’s affixed.
MANAGEMENT
Mr. Aloke Lohia
is the Chief
Executive Officer of
Group.
He is Indian
nationality with the
age of 56
years old.
Mr. Sashi Prakash Khaitan
is the President
& Chief Executive
Officer.
He is Indian
nationality with the
age of 66
years old.
Mr. Ramesh Kumar
Narsingh Pura is
the Chief Operating
Officer.
He is Indian
nationality with the
age of 54
years old.
Mr. Ashok Arora
is the Senior
Vice President.
He is Indian
nationality.
Mr. Anives Divaree is
the Vice President
[Operation].
He is Indian
nationality.
Mr. Gopal Krishna Tiwary
is the Commercial
Manager.
He is Indian
nationality.
Mrs. Sunantha Larnopparat is
the Human Resources
Manager.
She is Thai
nationality.
Mr. Markandey Shukla is
the General Manager.
He is Indian
nationality.
BUSINESS OPERATIONS
The subject’s activities
are manufacturer, exporter
and distributor of
Polyester Yarn products,
including Partially Oriented
Yarn [POY], Draw Textured
Yarn [DTY], Polyester Staple
Fibre, Utra-Fine Polyester
Fibre, as well
as PET plastic
resin, serving customers in
the main end
use markets of
apparels, home textiles, automotive,
and non-woven sectors
with an extensive
range of products
for all sectors.
PRODUCTIONS
Polyester yarn : 285,000
tons per annum
Ultra-Fine Polyester Fibre : 196,000
tons per annum
PET plastic resin : 108,000
tons per annum
PURCHASE
Cotton/plastic resin and
raw materials such
as Mono Ethylene Glycol [MEG] and Pure
Terephthalic Acid [PTA] are purchased
from both local
and overseas suppliers in
Japan, Germany, Taiwan,
Australia, India and Republic
of China.
MAJOR SUPPLIERS
Indorama Petrochem Limited :
TPT Petrochemicals Public
Company Limited. :
SALES [LOCAL]
20% of the
products is sold
locally to manufacturers, wholesalers
and end-users.
EXPORT [COUNTRIES]
80% of the products
is exported to Europe, Australia,
Republic of China,
Singapore, Taiwan, Indonesia,
Korea, New Zealand,
Vietnam, Myanmar, Colombia,
Malaysia, Philippines, India
and Middle East.
MAJOR CUSTOMER
Prohesa S.A.S. :
LITIGATIONS
Bankruptcy and Receivership
On December 15, 2003,
the Central Bankruptcy
Court has ordered
Tuntex [Thailand] Public
Company Limited [Debtor]
to enter into
business rehabilitation and
appointed Tuntex [Thailand]
Public Company Limited to be
the Planner according
to the lawsuit
red case no.
2382/2546. As a
result of such
Court order, the
power and duties
in managing the
business and assets
of the debtor, including
all legal rights
of the company’s
shareholders shall be
vested in the Planner
according to Article
90/25 of Bankruptcy
Act B.E. 2483.
On September 10, 2004, the Court
approved the rehabilitation plan
and assigned Tuntex [Thailand]
Public Company Limited
to be the Plan
Administrator. As a
result of such
Court order, the
power and duties
of the Planner
shall be vested
in the Plan Administrator
according to Article
90/59 of Bankruptcy
Act B.E. 2483.
On October 27, 2008, the Court has
ordered a cancellation
of company’s rehabilitation according
to Article 90/70
of Bankruptcy Act
B.E. 2483. As a result
of such Court
order, the power
and duties in
managing the business
and assets of
the debtor shall
be vested in
the management of
debtor and shareholders.
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.
PARENT COMPANY
Indorama Ventures Public Company Limited
RELATED AND
ASSOCIATED COMPANIES
TPT Petrochemicals Public
Company Limited
Business Type : Manufacturer
of Purified Terephthalic
Acid [PTA]
Tuntex Textile [
Business Type : Manufacturing
& distribution of
fabrics
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
:
The Siam Commercial
Bank Public Co.,
Ltd.
[Head Office
:
Krung Thai Bank
Public Co., Ltd.
[Head Office :
EMPLOYMENT
The subject employs
approximately 1,000 staff. [office, sales
staff and factory workers]
LOCATION DETAILS
The premise is rented
for operating administrative
office at the
heading address. Premise located
in commercial/residential area.
Factory I is
located at 6, I -
2 Road,
Mabtaphut Industrial Estate,
T. Mabtaphut,
A. Muang, Rayong
21150. Tel: [66]
38 683-870-8, Fax
[66] 38 683-883-8.
Factory II is
located at 35/8
Moo 4, T. Khunkaew,
A. Nakornchaisri, Nakhonpathom
73120. Tel : [66] 34
222-191-6.
ADDITIONAL INFORMATION
Indorama Ventures invested in
strategic project to make 16,000
tons per year of high quality bi-component yarns, a specialty product in the fibers industry, at its recently acquired Indorama Ventures
Indonesia (IVI) plant (formerly SK Keris) in Tangerang, Indonesia. IVI
owns unique technology to make Bi-component yarns (known
as FINNE) through a single step process. The company enjoys significant competitive
advantage over companies who
currently use a two step process and has
secured a leading market
share in this segment.
The product is a specialty line that is very popular for outerwear
and has
unique properties of drape and touch
which few competitors can offer,
giving it a good potential for growth. The bi-component and FINNE
projects will both offer Indorama Ventures a
higher margin and therefore boost its revenues
and earnings while securing the company against any volatility
in raw material costs.
It expected to commence operations in the first quarter of 2013, bringing its
total new investments in Thailand and
Indonesia to $85 million, which
will provide further value-added
specialties to its aspiration 2014 growth plan.
COMMENT
The company is
a manufacture, distributor
and exporter of polyester yarns. Economic conditions have not
had a great impact on its
business and the year ended with a
record-breaking the year, which
the results were remarkable.
The fact is that cotton Inclement
weather that can
lead to crop shortages have
meant that Polyester fiber is
expected to continue to replace
cotton and other natural fibers each year
as there is no hindrance to the
expansion of Polyester production while
there is limited upside for
cotton. As the world faces
economic uncertainty, expect people to favor Polyester, the
lowest cost material.
The company is
a member of Indorama group, it
is one of the
largest producers of
polyester yarns. Its
geographic and product diversity have maximized business opportunity
across frontiers and it is able to take
advantage of its efficiency to remain in the forefront in each market where it
operates.
FINANCIAL INFORMATION
The capital was
originally registered at
Bht. 100,000 divided into
1,000 shares of
Bht. 100 each.
The capital was
increased later as
followings:
Bht.
80 million on
July 30, 1987
Bht.
600 million on
December 28, 1987
Bht. 750
million on November
11, 1988
Bht. 900
million on November
22, 1989
Bht. 1,000
million on August
22, 1990
Bht. 1,500
million on July
21, 1992
Bht. 1,800
million on July
15, 1993
Bht. 2,100
million in 1996
Bht. 2,300
million in 1997
Bht. 2,800
million in 1998
Bht. 2,960
million on August
14, 2003
The latest registered
capital was decreased
to Bht. 2,226,220,000
divided into 2,226,220,000
shares of Bht. 1 each.
MAIN SHAREHOLDERS [as
at April 21,
2014] at Bht. 2,202,850,000 of
capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Indorama Ventures Public
Company Limited Nationality: Mauritius Address : 37th Floor,
Ocean Tower 2, 75/102 Soi
Sukhumvit 19, Asoke Rd.,
Klongtoeynua, Wattana, Bangkok
|
1,430,636,976 |
64.94 |
|
Indorama Holdings Co.,
Ltd. Nationality: Mauritius Address : 28th Floor,
Ocean Tower 2, 75/64,
65 Soi
Sukhumvit 19, Asoke Rd.,
Klongtoeynua, Wattana, Bangkok
|
762,777,905 |
34.62 |
|
Mycene Holdings [B.V.I.] Ltd. Nationality: BVI Address : Unit 46, 12th Floor, Kowloonbay International Trade &
Exhibition Center, 1 Trademart
Drive, Kowloon
Bay, Hong Kong |
2,017,899 |
0.09 |
|
Others |
7,417,220 |
0.35 |
Total Shareholders : 839
Share Structure [as
at April 21,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
790 |
3,407,337 |
0.16 |
|
Foreign |
49 |
2,199,442,663 |
99.84 |
|
Total |
839 |
2,202,850,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.:
Ms. Orawan Chunhakitpaisan No.
6105
BALANCE SHEET
[BAHT]
The latest
financial figures published as at December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Cash and cash
equivalents |
6,645,388 |
10,350,825 |
8,997,057 |
|
Trade account receivable |
2,859,973,964 |
2,320,249,464 |
2,063,572,454 |
|
Inventories |
2,555,173,677 |
2,476,185,521 |
2,555,157,095 |
|
Other current assets
|
619,074,542 |
578,929,792 |
458,609,609 |
|
|
|
|
|
|
Total Current Assets
|
6,040,867,571 |
5,385,715,602 |
5,086,336,215 |
|
|
|
|
|
|
Deposits at financial institution under restrictions |
- |
- |
7,270,067 |
|
Property, plant and equipment |
6,919,252,268 |
6,840,035,667 |
6,572,766,059 |
|
Intangible assets |
- |
- |
9,137 |
|
Deferred income tax
assets |
5,409,149 |
10,194,052 |
- |
|
Other non-current assets |
170,169,100 |
59,302,008 |
54,743,877 |
|
Total Assets |
13,135,698,088 |
12,295,247,329 |
11,721,125,355 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 [Adjusted] |
2011 |
|
Bank overdraft and
short-term loans from financial
institutions |
25,430,025 |
- |
- |
|
Trade account payable
|
1,512,033,413 |
1,620,159,917 |
1,635,985,272 |
|
Short-term loan to parent
company |
5,013,100,000 |
3,909,800,000 |
5,658,200,000 |
|
Current portion of
finance lease contract liabilities |
182,593 |
34,074,398 |
12,460,420 |
|
Current portion of long-term
payable for machinery |
- |
8,309,925 |
11,459,484 |
|
Other Current Liabilities |
325,985,490 |
331,564,178 |
406,569,822 |
|
|
|
|
|
|
Total Current Liabilities |
6,876,731,521 |
5,903,908,418 |
7,724,674,998 |
|
Long-term loan from
parent company |
2,810,000,000 |
2,810,000,000 |
- |
|
Finance lease contract
liabilities |
195,411 |
378,005 |
34,453,678 |
|
Capital budget allocations
from demolition and
restore of assets |
154,112,829 |
148,614,107 |
143,311,579 |
|
Employee benefits obligation |
65,282,757 |
53,660,251 |
57,890,794 |
|
Long-term payable for
machinery |
- |
- |
8,594,613 |
|
Total Liabilities |
9,906,322,518 |
8,916,560,781 |
7,968,925,662 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share capital |
|
|
|
|
Registered |
|
|
|
|
2,226,220,000 ordinary
shares of Baht 1 each |
2,226,220,000 |
2,226,220,000 |
2,226,220,000 |
|
Issued & Fully Paid 2,202,850,000 ordinary shares
of Baht 1
each |
2,202,850,000 |
2,202,850,000 |
2,202,850,000 |
|
Share premium |
96,495,000 |
96,495,000 |
96,495,000 |
|
Revaluation surplus on
assets |
776,229,148 |
848,039,115 |
1,173,733,478 |
|
Loss on insurance |
- |
- |
[10,174,915] |
|
Revaluation surplus of
changes in values of investments invested
by an associate |
[907,144,640] |
[907,144,640] |
[907,144,640] |
|
Retained Earnings Appropriated for
statutory reserve |
107,194,501 |
107,194,501 |
81,107,079 |
|
Unappropriated [Deficit] |
953,751,561 |
1,031,252,572 |
1,115,333,691 |
|
Total Shareholders' Equity |
3,229,375,570 |
3,378,686,548 |
3,752,199,693 |
|
Total Liabilities & Shareholders' Equity |
13,135,698,088 |
12,295,247,329 |
11,721,125,355 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 [Adjusted] |
2011 |
|
|
|
|
|
|
Sales |
20,078,669,814 |
19,313,889,523 |
19,050,274,723 |
|
Interest income |
60,733,592 |
44,337,405 |
2,697,157 |
|
Gain from exchange
rate |
118,783,176 |
73,356,914 |
65,870,812 |
|
Gain on accrued
interest under debt
restructuring agreement |
- |
- |
111,088,273 |
|
Other income |
77,278,473 |
230,479,446 |
215,783,474 |
|
Total Revenues |
20,335,465,055 |
19,662,063,288 |
19,445,714,439 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of sales
|
19,442,063,624 |
18,746,780,269 |
17,904,464,064 |
|
Selling expenses |
551,935,584 |
650,474,817 |
597,299,854 |
|
Administrative expenses |
106,694,858 |
98,212,506 |
180,938,449 |
|
Loss on impairment of
property |
17,658,455 |
- |
- |
|
Loss on disposal
of land, building & equipment |
- |
1,329,152 |
27,446,927 |
|
Executives’ remuneration |
2,100,000 |
2,490,000 |
4,518,632 |
|
Financial cost |
334,390,347 |
293,858,248 |
209,298,070 |
|
Total Expenses |
20,454,842,868 |
19,793,144,992 |
18,923,965,996 |
|
|
|
|
|
|
Loss before income
tax |
[19,377,813] |
[131,081,704] |
521,748,443 |
|
Income [loss] before
other |
[9,814,555] |
158,061 |
- |
|
Loss on insurance |
[2,978,259] |
11,716,507 |
[10,174,915] |
|
Land, building and
equipment |
[22,170,002] |
- |
- |
|
Income tax |
5,029,651 |
[2,343,301] |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
[149,310,978] |
[121,550,437] |
511,573,528 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.88 |
0.91 |
0.66 |
|
QUICK RATIO |
TIMES |
0.42 |
0.39 |
0.27 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.90 |
2.82 |
2.89 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.53 |
1.57 |
1.63 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
47.97 |
48.21 |
52.09 |
|
INVENTORY TURNOVER |
TIMES |
7.61 |
7.57 |
7.01 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
51.99 |
43.85 |
39.54 |
|
RECEIVABLES TURNOVER |
TIMES |
7.02 |
8.32 |
9.23 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
28.39 |
31.54 |
33.35 |
|
CASH CONVERSION CYCLE |
DAYS |
71.57 |
60.52 |
58.28 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
96.83 |
97.06 |
93.99 |
|
SELLING & ADMINISTRATION |
% |
3.28 |
3.88 |
4.09 |
|
INTEREST |
% |
1.67 |
1.52 |
1.10 |
|
GROSS PROFIT MARGIN |
% |
4.45 |
4.74 |
8.09 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(0.59) |
(0.68) |
2.74 |
|
NET PROFIT MARGIN |
% |
(0.74) |
(0.63) |
2.69 |
|
RETURN ON EQUITY |
% |
(4.62) |
(3.60) |
13.63 |
|
RETURN ON ASSET |
% |
(1.14) |
(0.99) |
4.36 |
|
EARNING PER SHARE |
BAHT |
(0.07) |
(0.06) |
0.23 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.75 |
0.73 |
0.68 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.07 |
2.64 |
2.12 |
|
TIME INTEREST EARNED |
TIMES |
(0.36) |
(0.45) |
2.49 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
3.96 |
1.38 |
|
|
OPERATING PROFIT |
% |
(8.93) |
(125.12) |
|
|
NET PROFIT |
% |
(22.84) |
(123.76) |
|
|
FIXED ASSETS |
% |
1.14 |
3.65 |
|
|
TOTAL ASSETS |
% |
6.84 |
4.90 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 3.96%. Turnover has increased from THB 19,313,889,523.00
in 2012 to THB 20,078,669,814.00 in 2013. While net profit has decreased from
THB -121,550,437.00 in 2012 to THB -149,310,978.00 in 2013. And total assets
has increased from THB 12,295,247,329.00 in 2012 to THB 13,135,698,088.00 in
2013.
PROFITABILITY : RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
4.45 |
Satisfactory |
Industrial Average |
5.21 |
|
Net Profit Margin |
(0.74) |
Deteriorated |
Industrial Average |
5.02 |
|
Return on Assets |
(1.14) |
Deteriorated |
Industrial Average |
4.97 |
|
Return on Equity |
(4.62) |
Deteriorated |
Industrial Average |
8.41 |
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 4.45%. 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 -0.74%.
When compared with the industry average, the ratio of the company was lower.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. When compared with the
industry average, it was lower, the company's figure is -1.14%.
Return on Equity indicates how profitable a company is by comparing its
net income to its average shareholders' equity, ROE measures how much the
shareholders earned for their investment in the company. When compared with the
industry average, it was lower, the company's figure is -4.62%.
Trend of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.88 |
Risky |
Industrial Average |
1.60 |
|
Quick Ratio |
0.42 |
|
|
|
|
Cash Conversion Cycle |
71.57 |
|
|
|
The Current Ratio is to ascertain whether a company's short-term assets
are readily available to pay off its short-term liabilities. The company's figure
is 0.88 times in 2013, decreased from 0.91 times, then the company may have
problems meeting its short-term obligations. 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 0.42 times in 2013,
increased from 0.39 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 72 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.75 |
Acceptable |
Industrial Average |
0.36 |
|
Debt to Equity Ratio |
3.07 |
Risky |
Industrial Average |
0.55 |
|
Times Interest Earned |
(0.36) |
Risky |
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 -0.36 lower than 1, so the company is not generating
enough cash from EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.75 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 Stable
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.90 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.53 |
Impressive |
Industrial Average |
0.99 |
|
Inventory Conversion Period |
47.97 |
|
|
|
|
Inventory Turnover |
7.61 |
Impressive |
Industrial Average |
5.68 |
|
Receivables Conversion Period |
51.99 |
|
|
|
|
Receivables Turnover |
7.02 |
Impressive |
Industrial Average |
5.24 |
|
Payables Conversion Period |
28.39 |
|
|
|
The company's Account Receivable Ratio is calculated as 7.02 and 8.32 in
2013 and 2012 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 2013
decreased from 2012. 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 is
48 days at the end of 2012,
same number of
days as in
2013. This represents a positive trend. And Inventory turnover has
increased from 7.57 times in year 2012 to 7.61 times in year 2013.
The company's Total Asset Turnover is calculated as 1.53 times and 1.57
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 Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.81 |
|
|
1 |
Rs.96.77 |
|
Euro |
1 |
Rs.77.09 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TPT |
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.