MIRA INFORM REPORT
|
Report Date : |
11.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
INDEX INTERFURN CO., LTD. |
|
|
|
|
Registered Office : |
143 Soi Rama 2 Soi 50, Rama 2 Road, Samaedam Bangkhuntien Bangkok
10150 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
01.07.2009 |
|
|
|
|
Com. Reg. No.: |
0105552064096 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Exporter and Distributor of Home and Office Furniture |
|
|
|
|
No. of Employees : |
1,600 |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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 in 2013
implemented a nation-wide 300 baht ($10) per day minimum wage policy and
deployed 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. This was expected to lead to an
economic upsurge but growth has remained slow, in part due to ongoing political
unrest and resulting uncertainties. Spending on infrastructure will require
re-approval once a new government is seated.
|
Source
: CIA |
Company
Name
INDEX INTERFURN
CO., LTD.
SUMMARY
BUSINESS ADDRESS : 143
SOI RAMA 2
SOI 50, RAMA
2 ROAD,
SAMAEDAM, BANGKHUNTHIEN,
BANGKOK 10150, THAILAND
TELEPHONE : [66] 2415-0077,
2898-4488
FAX :
[66] 2415-7399,
2415-3883, 2898-4411
E-MAIL ADDRESS : info@index-interfurn.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2009
REGISTRATION NO. : 0105552064096
TAX ID NO. : 3033516449
CAPITAL REGISTERED
: BHT.
960,000,000
CAPITAL PAID-UP
: BHT.
960,000,000
SHAREHOLDER’S PROPORTION : THAI
: 100%
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PISITH PATAMASATAYASONTHI, THAI
PRESIDENT &
CHIEF EXECUTIVE OFFICER
NO. OF
STAFF : 1,600
LINES OF
BUSINESS : HOME
AND OFFICE FURNITURE
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 July 1,
2009 as a private limited
company under the
name style INDEX
INTERFURN CO., LTD.,
by Thai groups.
It was set
up under the
merger among 4
companies, named “Index
Interfurn Co., Ltd.”,
registration number 0105526037184, “Bangkok
Home Plus Co.,
Ltd.”, registration number
0105543055829, “Bangkok Cabinet
Co., Ltd.”, registration number
0105532107784, and “Bangkok
Furnitech Co., Ltd.”,
registration number 0105532107750, in
order to manufacture
and service various
styles of home
and office furniture
to both domestic
and international markets.
It currently employs
approximately 1,600 staff.
The subject’s registered
address was initially
at 43/13 Moo
7, Soi Rama 2
Soi 50,
Rama II Rd.,
Samaedam, Bangkhunthien, Bangkok
10150.
On
May 7, 2010, subject’s
registered address number
was changed to
143 Soi Rama
2 Soi 50, Rama 2 Rd.,
Samaedam, Bangkhunthien,
Bangkok 10150, by
the Bangkhunthien District
Office, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Pisith
Patamasatayasonthi |
[x] |
Thai |
66 |
|
Mrs. Khanthong Udommahantisuk |
[x] |
Thai |
61 |
|
Ms. Krischanok [Jarintorn] Patamasatayasonthi |
|
Thai |
38 |
|
Ms. Pichapim Patamasatayasonthi |
|
Thai |
36 |
|
Mr. Ekaluck Patamasatayasonthi |
|
Thai |
34 |
|
Mr. Ekarit
Patamasatayasonthi |
|
Thai |
29 |
|
Mr. Yingyos Udommahantisuk |
[x] |
Thai |
64 |
|
Mr. Piriya
Boonkittiwattana |
[x] |
Thai |
53 |
|
Mr. Prasan
Harntanasirisakul |
[x] |
Thai |
58 |
*Ms.
Jarintorn Patamasatayasonthi changed
her name to Ms.
Krischanok on
September 11, 2012.
AUTHORIZED
PERSON
Any
two of the mentioned directors
[x] can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Pisith Patamasatayasonthi is
the President & Chief Executive
Officer.
He
is Thai nationality
with the age
of 66 years old.
Mrs.
Khanthong Udommahantisuk is
the Vice President.
She
is Thai nationality
with the age
of 61 years
old.
Ms. Pichapim Patamasatayasonthi is
the Vice President [Export].
She
is Thai nationality
with the age
of 36 years
old.
Mr. Piriya Boonkittiwattana is
the Managing Director.
He
is Thai nationality
with the age
of 53 years
old.
Mr. Nopporn Duangjinda
is the Factory
Manager.
He
is Thai nationality.
BUSINESS
OPERATIONS
The
subject is engaged
in design, manufacturing
and servicing various
kinds of home &
office furniture under its own
brands and customers’
brands, which can
be divided into 10 main
products as follows:
1.
Bed room: beds, nigh
tables, wardrobes, dressing tables,
chest of drawers,
mirror, & bedroom
series.
2.
Living room: coffee tables,
side tables, nesting
tables, console tables,
sideboards, chest of drawers,
show cabinets, high
cabinets, low cabinets,
TV cabinets, shelves & bookcases, sofa,
and living series.
3.
Dining room: dining tables, dining chairs, buffet cabinets, high
bar tables, high
bar stools and
dining sets.
4.
Home
office: computer/working tables,
office chairs, shelves &
bookcases, pedestals, and
home office series.
5.
Kids furniture: beds, night tables, wardrobes, mirror, low
cabinets, chest of drawers, TV
tables, tables, chairs,
shelves & bookcases, kids series.
6.
Occasional outdoors: tables & chairs.
7.
Cash
& carry: cloth & hangers, stools,
shoe hangers, shoe
cabinets, shelves/ cabinets.
8.
Kitchen room: compact kitchen
sets and kitchen
trolleys.
9.
Mattress:
mattresses & bedding
accessories.
10. Office
furniture: office
cabinets, cabinets and
working series.
BRAND NAMES
Index
group’s brands : INDEX,
WINNER, THERAFLEX, TREND
DESIGN & LOGICA.
PURCHASE
Raw materials and
accessories are purchased from suppliers
in both domestic
and overseas, mainly Japan, Taiwan, Republic of China,
Malaysia, Hong Kong, Singapore,
Italy and Germany.
MAJOR SUPPLIERS
Sahaviriya Steel
Industries Public Company
Limited : Thailand
Thai Plywood
Co., Ltd. : Thailand
Vanachai group : Thailand
SALES [LOCAL]
20%
of the products
is sold locally
by wholesale through
Index Living Mall
Co., Ltd.
EXPORT
80% of
the products is
exported to Australia,
New Zealand, Canada,
Mexico, and the
countries in Asia,
Europe, Africa, North America, Central
America, South America
and Middle East
regions such as
U.A.E., Oman, Qatar,
Saudi Arabia and
Bahrain.
MAJOR CUSTOMERS
Pangea
Imports Inc. : U.S.A.
Furniture
Resource Inc. :
U.S.A.
RELATED
AND AFFILIATED COMPANIES
The
Index group of
companies :
Index Living
Mall Co., Ltd.
Business
Type : Distributor
of furniture products
Bangkok Casa
Co., Ltd.
Business
Type : Distributor
of furniture products
Bangkok Business
Co., Ltd.
Business
Type : Accounting
business in affiliated
companies
Bangkok Sunyo
Spring Co., Ltd.
Business
Type : Manufacturer
and distributor of
rubber wood furniture
Bangkok Masterwood
Co., Ltd.
Business
Type : Manufacturer
and distributor of
rubber wood furniture
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 according
to 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.
Exports
are against T/T.
BANKING
Kasikornbank Public
Co., Ltd.
Bangkok Bank
Public Co., Ltd.
Bank of
Ayudhya Public Co.,
Ltd.
EMPLOYMENT
The subject
employs approximately 1,600 staff.
LOCATION
DETAILS
The premise
is owned for
administrative office at the heading
address. Premise is located
in commercial/residential area.
Factory and
warehouse are located
at 18/1-2, 18/4, 18/10
Moo 4, Rama 2
Rd.,
T. Nadee, A. Muang,
Samutsakorn 74000. Tel. :
[66] 34 833-413,
Fax. : [66] 34
833-400.
Other warehouse
is located at
99-99/1-2 Moo 5,
Ekachai Rd., T. Kokam,
A. Muang, Samutsakorn
74000.
COMMENT
Index Interfurn is one of the leading and most distinguished furniture
manufacturers in Thailand. For over 35 years, it has dedicated to
provide the best
quality products for
domestic and overseas
markets.
Today Index
Interfurn products has been
exported worldwide to over 100 countries
including Asia, Europe, North America, Central America, South America,
Australia, New Zealand, Middle East and Africa.
Despite
the economic slowdown, the company’s
balance sheet remains strong and ready to support growth in all
business units including
making additional investments
in new businesses.
Moreover property
expansion in the
central of Bangkok
along the BTS sky
train would increase demand
of household furniture
in the last
quarter of this year.
FINANCIAL
INFORMATION
The capital
was registered at
Bht. 960,000,000 divided into
9,600,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at
April 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Pisith Patamasatayasonthi Nationality: Thai Address
: 147 Soi
Rama 2 Soi
50, Rama 2
Rd., Samaedam, Bangkhunthien, Bangkok |
2,916,022 |
30.37 |
|
Mrs.
Khanthong Udommahantisuk Nationality: Thai Address
: 143 Soi
Rama 2 Soi
50, Rama 2
Rd., Samaedam, Bangkhunthien, Bangkok |
2,416,205 |
25.17 |
|
Ms.
Krischanok Patamasatayasonthi Nationality: Thai Address
: 143 Soi
Rama 2 Soi
50, Rama 2
Rd., Samaedam, Bangkhunthien, Bangkok |
1,008,344 |
10.50 |
|
Ms.
Pichapim Patamasatayasonthi Nationality: Thai Address
: 143 Soi
Rama 2 Soi
50, Rama 2
Rd., Samaedam, Bangkhunthien, Bangkok |
1,008,344 |
10.50 |
|
Mr. Ekarit Patamasatayasonthi Nationality: Thai Address
: 143 Soi
Rama 2 Soi
50, Rama 2
Rd., Samaedam, Bangkhunthien, Bangkok |
1,008,344 |
10.50 |
|
|
|
|
|
Mr. Ekaluck Patamasatayasonthi Nationality: Thai Address
: 143 Soi
Rama 2 Soi
50, Rama 2
Rd., Samaedam, Bangkhunthien, Bangkok |
1,008,344 |
10.50 |
|
Mr. Yingyos Udommahantisuk Nationality: Thai Address
: 79/145 Moo
2, Soi Bangkradi
30, Bangkradi Rd.,
Samedam, Bangkhunthien, Bangkok |
159,397 |
1.66 |
|
Mr. Piriya Boonkittiwattana Nationality: Thai Address
: 100/454 Moo
5, Bangrakpattana, Bangbuathong, Nonthaburi |
75,000 |
0.80 |
Total Shareholders
: 8
Share Structure
[as at April
30, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
8 |
9,600,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
8 |
9,600,000 |
100.00 |
NAME
OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mrs. Amporn
Sotethisaowapark No. 3486
BALANCE
SHEET [BAHT]
The latest
financial figures published
for December 31,
2013, 2012 &
2011 were :
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash
and Cash Equivalents |
77,750,506.43 |
82,894,837.91 |
53,231,764.88 |
|
Short-term Investment |
- |
180,000,000.00 |
180,000,000.00 |
|
Trade
Accounts & Other
Receivable |
605,095,362.56 |
588,143,111.44 |
552,731,295.05 |
|
Short-term Lending |
400,000,000.00 |
100,000,000.00 |
100,000,000.00 |
|
Inventories |
230,342,119.11 |
543,878,140.26 |
515,345,532.53 |
|
|
|
|
|
|
Total Current
Assets |
1,313,187,988.10 |
1,494,916,089.61 |
1,401,308,592.46 |
|
Cash at Bank pledged
as a Collateral |
18,570,221.41 |
18,077,648.69 |
26,182,967.33 |
|
Investment
for Sale |
128,900,857.16 |
20,156,150.73 |
- |
|
Investment in Associated Company |
202,019,800.00 |
202,019,800.00 |
202,019,800.00 |
|
Other
Long-term Investment |
194,211,700.00 |
194,211,700.00 |
194,211,700.00 |
|
Fixed Assets |
850,264,094.83 |
971,852,261.71 |
1,094,287,005.71 |
|
Intangible Assets |
5,819,786.98 |
8,785,601.74 |
6,979,662.41 |
|
Other Non-current Assets |
854,076.45 |
880,876.45 |
3,299,280.48 |
|
Total Assets
|
2,713,828,524.93 |
2,910,900,128.93 |
2,928,289,008.39 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft and Short-term
Loan from Financial institution |
720,649,383.99 |
818,751,686.60 |
714,153,348.68 |
|
Trade
Accounts & Other Payable |
742,411,050.41 |
687,160,032.38 |
678,710,528.26 |
|
Current Portion of Finance Lease
Contract Payable |
1,305,363.19 |
312,702.53 |
359,584.94 |
|
Current Portion of Long-term Loan |
49,572,500.00 |
52,740,000.00 |
46,740,000.00 |
|
Accrued
Income Tax |
502,921.60 |
733,613.21 |
2,478,794.65 |
|
|
|
|
|
|
Total Current
Liabilities |
1,514,441,219.19 |
1,559,698,034.72 |
1,442,442,256.53 |
|
Finance Lease Contract Payable, net |
3,034,093.55 |
585,752.22 |
- |
|
Other Long
Term Loan |
24,562,073.38 |
75,109,573.38 |
101,874,573.38 |
|
Employee
Benefit Obligation |
21,163,664.00 |
21,009,971.00 |
22,799,202.00 |
|
Total Liabilities |
1,563,201,050.12 |
1,656,394,331.32 |
1,567,116,031.91 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
Share
capital : Baht 100 par
value authorized, issued
and
fully paid share
capital 9,600,000
shares |
960,000,000.00 |
960,000,000.00 |
960,000,000.00 |
|
|
|
|
|
|
Capital
Paid |
960,000,000.00 |
960,000,000.00 |
960,000,000.00 |
|
Retained Earning
Appropriated for
Statutory Reserve |
47,400,000.00 |
46,400,000.00 |
30,000,000.00 |
|
Unappropriated |
151,490,052.55 |
247,949,646.88 |
371,172,976.48 |
|
Other Components of Shareholder’s
Equity |
[8,262,577.74] |
156,150.73 |
- |
|
Total
Shareholders' Equity |
1,150,627,474.81 |
1,254,505,797.61 |
1,361,172,976.48 |
|
Total Liabilities
& Shareholders' Equity |
2,713,828,524.93 |
2,910,900,128.93 |
2,928,289,008.39 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
2,952,142,604.96 |
2,989,758,622.37 |
2,764,499,921.62 |
|
Services Income |
102,846,989.55 |
98,717,112.99 |
96,820,359.31 |
|
Other Income |
59,738,000.07 |
56,384,055.09 |
67,428,361.10 |
|
Total Revenues
|
3,114,727,594.58 |
3,144,859,790.45 |
2,928,748,642.03 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost
of Goods Sold
|
2,799,459,230.61 |
2,848,607,451.39 |
2,613,900,802.89 |
|
Cost
of Service |
56,539,073.09 |
57,025,097.59 |
58,037,461.97 |
|
Selling Expenses |
9,413,309.56 |
11,722,791.64 |
13,614,412.00 |
|
Administrative Expenses |
170,826,039.95 |
162,959,736.34 |
162,179,672.99 |
|
Total Expenses |
3,036,237,653.21 |
3,080,315,076.96 |
2,847,732,349.85 |
|
|
|
|
|
|
Profit before Finance Cost and
Income Tax |
78,489,941.37 |
64,544,713.49 |
81,016,292.18 |
|
Finance Cost |
[34,771,889.10] |
[41,398,231.86] |
[39,940,717.43] |
|
|
|
|
|
|
Profit before Income Tax |
43,718,052.27 |
23,146,481.63 |
41,075,574.75 |
|
Income Tax |
[4,777,646.60] |
[4,785,811.23] |
[7,819,158.17] |
|
Net Profit / [Loss] |
38,940,405.67 |
18,360,670.40 |
33,256,416.58 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY
RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.87 |
0.96 |
0.97 |
|
QUICK RATIO |
TIMES |
0.72 |
0.61 |
0.61 |
|
|
|
|
|
|
|
ACTIVITY
RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.59 |
3.18 |
2.61 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.13 |
1.06 |
0.98 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
29.44 |
68.32 |
70.40 |
|
INVENTORY TURNOVER |
TIMES |
12.40 |
5.34 |
5.18 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
72.29 |
69.51 |
70.51 |
|
RECEIVABLES TURNOVER |
TIMES |
5.05 |
5.25 |
5.18 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
94.88 |
86.32 |
92.72 |
|
CASH CONVERSION CYCLE |
DAYS |
6.85 |
51.51 |
48.19 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
93.49 |
94.08 |
93.38 |
|
SELLING & ADMINISTRATION |
% |
5.90 |
5.66 |
6.14 |
|
INTEREST |
% |
1.14 |
1.34 |
1.40 |
|
GROSS PROFIT MARGIN |
% |
8.47 |
7.75 |
8.98 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.57 |
2.09 |
2.83 |
|
NET PROFIT MARGIN |
% |
1.27 |
0.59 |
1.16 |
|
RETURN ON EQUITY |
% |
3.38 |
1.46 |
2.44 |
|
RETURN ON ASSET |
% |
1.43 |
0.63 |
1.14 |
|
EARNING PER SHARE |
BAHT |
4.06 |
1.91 |
3.46 |
|
|
|
|
|
|
|
LEVERAGE
RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.58 |
0.57 |
0.54 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.36 |
1.32 |
1.15 |
|
TIME INTEREST EARNED |
TIMES |
2.26 |
1.56 |
2.03 |
|
|
|
|
|
|
|
ANNUAL
GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(1.08) |
7.94 |
|
|
OPERATING PROFIT |
% |
21.61 |
(20.33) |
|
|
NET PROFIT |
% |
112.09 |
(44.79) |
|
|
FIXED ASSETS |
% |
(12.51) |
(11.19) |
|
|
TOTAL ASSETS |
% |
(6.77) |
(0.59) |
|
ANNUAL
GROWTH: ACCEPTABLE
An annual sales growth is -1.08%. Turnover
has decreased from THB
PROFITABILITY
: RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.47 |
Deteriorated |
Industrial Average |
29.13 |
|
Net Profit Margin |
1.27 |
Deteriorated |
Industrial Average |
3.11 |
|
Return on Assets |
1.43 |
Deteriorated |
Industrial Average |
3.76 |
|
Return on Equity |
3.38 |
Deteriorated |
Industrial Average |
10.05 |
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
8.47%. 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 1.27%. 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 1.43%.
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
3.38%.
Trend
of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY
: ACCEPTABLE
LIQUIDITY
RATIO
|
Current Ratio |
0.87 |
Risky |
Industrial Average |
1.28 |
|
Quick Ratio |
0.72 |
|
|
|
|
Cash Conversion Cycle |
6.85 |
|
|
|
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 0.87 times in 2013, decreased from 0.96 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 0.72 times in 2013, increased 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
7 days.
Trend
of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE
: IMPRESSIVE
LEVERAGE
RATIO
|
Debt Ratio |
0.58 |
Impressive |
Industrial Average |
0.64 |
|
Debt to Equity Ratio |
1.36 |
Acceptable |
Industrial Average |
1.74 |
|
Times Interest Earned |
2.26 |
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 2.26 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 0.58
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 |
3.59 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.13 |
Satisfactory |
Industrial Average |
1.21 |
|
Inventory Conversion Period |
29.44 |
|
|
|
|
Inventory Turnover |
12.40 |
Impressive |
Industrial Average |
2.77 |
|
Receivables Conversion Period |
72.29 |
|
|
|
|
Receivables Turnover |
5.05 |
Impressive |
Industrial Average |
3.82 |
|
Payables Conversion Period |
94.88 |
|
|
|
The company's Account Receivable Ratio is
calculated as 5.05 and
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 68 days
at the end of 2012 to 29 days at the end of 2013. This represents a positive
trend. And Inventory turnover has increased from 5.34 times in year 2012 to
12.4 times in year 2013.
The company's Total Asset Turnover is
calculated as 1.13 times and 1.06 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 Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.16 |
|
|
1 |
Rs.98.62 |
|
Euro |
1 |
Rs.77.67 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
NIT |
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.