MIRA INFORM REPORT
|
Report No. : |
337493 |
|
Report Date : |
21.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
LUCKY SPINNING CO., LTD. |
|
|
|
|
Registered Office : |
21st Floor, Ocean
Tower 2, 75/38-39
Soi Wattana, Sukhumvit
19 Road, Klongtoeynua, Wattana,
Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
17.07.2001 |
|
|
|
|
Com. Reg. No.: |
0105544066603 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject
is engaged in manufacturing wide
range of yarn
products as follows: ·
Ring
Yarns: 100% rayon, 100% cotton, and
blended yarns
[cotton/polyester/rayon] ·
Open
End Yarns: rayon
yarns and cotton
yarns ·
Vortex Yarns:
100% rayon and
blended yarns [cotton/polyester/rayon] · Specialty Yarns: denim yarns, core spandex yarns, core filament yarns, fancy yarns [including Slubs & MCMTs] and TFO doubled yarns |
|
|
|
|
No. of Employees : |
900 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow |
|
Litigation : |
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, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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,
and generally pro-investment policies Thailand has historically had a strong
economy due in part to competitive industrial and agriculture exports - mostly
electronics, agricultural commodities, automobiles and parts, and processed
foods. The economy experienced slow growth and declining exports in 2014, in
part due to domestic political turmoil and sluggish global demand. With full
employment, Thailand attracts an estimated 2-4 million migrant workers from
neighboring countries, and faces labor shortages. Following the May 2014 coup
d’tat, tourism decreased 6-7% but is beginning to recover. The household debt
to GDP ratio is over 80%. 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 baht has remained
stable.
|
Source
: CIA |
Company
name
LUCKY SPINNING CO., LTD.
SUMMARY
BUSINESS ADDRESS : 21st
FLOOR, OCEAN TOWER
2,
75/38-39 SOI WATTANA, SUKHUMVIT
19 ROAD,
KLONGTOEYNUA, WATTANA,
BANGKOK 10110,
THAILAND
TELEPHONE : [66] 2646-7700
FAX
: [66] 2646-7711
E-MAIL ADDRESS : mktg-spg@luckyspinning.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED
: 2001
REGISTRATION NO. : 0105544066603
VAT NO. : 3030312884
CAPITAL REGISTERED : BHT.
2,000,000,000
CAPITAL PAID-UP : BHT.
2,000,000,000
SHAREHOLDER’S
PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE
: DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. KAMOL PHICHITSINGH,
THAI
CHIEF EXECUTIVE
OFFICER AND
MANAGING DIRECTOR
NO. OF STAFF : 900
LINES OF BUSINESS : YARN
SPINNING
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
|
|
|
CORPORATE PROFILE |
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH LOW PERFORMANCE
HISTORY
The subject was
established on July
17, 2001 as
a private limited
company under the name
style LUCKY SPINNING
CO., LTD., by
Thai groups, with
the business objective
to operate yarn spinning
factory for fabric
and yarn industries,
with the promotional privilege granted
by the Board
of Investment [BOI].
It currently employs
approximately 900 staff.
The subject is
a member of
Lucky Impex Group
of Companies, a
large multinational conglomerate commenced operations
back in 1940. With
textiles as its
core expertise, the group
has diversified into
several other business
areas, including plastics, real estate,
construction and property
management. The group comprises
seven companies as
the followings:
Lucky Impex Limited
Partnership
Lucky Impex Textile
Co., Ltd.
Lucky Spinning Co., Ltd.
L.I. Textile, Melbourne,
Australia
Lucky Plastics and
Chemicals Co., Ltd.
Hawaii Tower Co., Ltd.
H.B. Villa Co., Ltd.
The subject’s registered address is 21st Flr.,
Ocean Tower 2, 75/38-39 Soi Wattana, Sukhumvit 19 Rd., Klongtoeynua,
Wattana, Bangkok 10110,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kamol
Phichitsingh |
[x] |
Thai |
63 |
|
Mrs. Baljeet
Kaur Phichitsingh |
|
Thai |
56 |
|
Ms. Sukhmeet
Phichitsingh |
[x] |
Thai |
31 |
|
Mr. Santhit
Phichitsingh |
[x] |
Thai |
29 |
AUTHORIZED PERSON
Any of the
mentioned directors [x]
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Kamol
Phichitsingh is the
Chief Executive Officer & Managing Director.
He is Thai
nationality with the
age of 63
years old.
Ms. Sukhmeet Phichitsingh
is the Deputy
Managing Director [Accounting
& Financial].
She is Thai
nationality with the
age of 31
years old.
Mr. Santhit Phichitsingh
is the Deputy
Managing Director.
He is Thai
nationality with the
age of 29 years
old.
Mr. A.R.
Balasundharam is the
General Manager [Production].
He is Indian
nationality.
Mr. Ravi Taparia is
the General Manager [Export].
He is Indian
nationality.
Ms. Haruethai
Sangphu is the Human Resources & Accounting Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
wide range of
yarn products as
follows:
Ring Yarns: 100% rayon,
100% cotton, and blended
yarns [cotton/polyester/rayon]
Open End Yarns:
rayon yarns and
cotton yarns
Vortex Yarns: 100%
rayon and blended
yarns [cotton/polyester/rayon]
Specialty Yarns: denim
yarns, core spandex yarns, core
filament yarns, fancy
yarns [including Slubs &
MCMTs] and TFO
doubled yarns
MAJOR BRANDS
“LOPIL”,
“KRISPUN”, “CAYON”
PRODUCTION CAPACITY
3,200 tons per
month
FACILITIES
The subject used its
renowned machineries and equipments for
the production, including
Trutzschler, Lakshmi, Rieter,
Schlafhorst, Savio, Volkman,
LTG, Uster and
Premier.
PURCHASE
Most of raw materials
such as cotton yarn,
synthetic yarn, and
equipment are purchased from
local suppliers and
agents, the remaining,
as well as
machinery and equipment
are imported from
Germany, Japan, Italy,
India, Republic of
China and Taiwan.
MAJOR SUPPLIERS
Murata Machinery Co.,
Ltd. : Japan
Lakshmi Machine Works
Ltd. : India
SALES
90% of the
products is exported
to over 40
countries worldwide such
as Korea, Taiwan, Hong Kong,
India, Singapore, Malaysia, New
Zealand, Belgium, Spain, Turkey,
France, Indonesia, Bangladesh, Pakistan,
Canada, Republic of
China, U.S.A. Australia
and Middle East
countries, the remaining 10% is sold
and serviced locally
to wholesalers and
manufacturers.
MAJOR CUSTOMER
L.I. Textile [Australia]
Pty Ltd. :
Australia
RELATED AND
AFFILIATED COMPANIES
Lucky Impex Textile
Co., Ltd.
Business Type :
Distributor of textile
products
Lucky Global Corporation
Co., Ltd.
Business Type :
Importer and distributor
of industrial chemicals
and plastic products
H. B. Villa Co.,
Ltd.
Business Type :
Land development business
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
or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject employs
approximately 900 office
staff and factory
workers.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Factory is located
at 88 Moo
2, T. Bangnamchiew,
A. Phromburi, Singburi
16120.
Tel. : [66] 36 598-130-1,
Fax. : [66] 36
598-888
Warehouse is located
at 47 Moo
2, Asia Highway,
T. Banmo, A. Phromburi,
Singburi 16120.
NOTE
Refer to your
given the subject’s
name “LUCKY SHIPPING
CO., LTD.”, please
be informed that
the correct name is
“LUCKY SPINNING CO.,
LTD.”.
COMMENT
Since its
establishment, the subject has continuously developed
and improved its
operations. In response
to increasingly demand of
international textile markets,
the subject is
always in the
process of launching
and planning new
products for the
markets.
The subject’s operating
performance in 2013
was slowdown from
the previous year.
Moreover, the subject
had higher expenses which
resulted in the
net loss at
the end of year.
High accumulated loss
for many consecutive
years was concerned
for greatly affects in
long-term prospect.
FINANCIAL INFORMATION
The capital was
registered at Bht.
40,000,000 divided into
4,000,000 shares of
Bht. 10
each.
The capital was
increased later as
following:
Bht. 260,000,000 on
November 25, 2003
Bht. 600,000,000 on
October 20, 2005
Bht. 750,000,000 on
December 28, 2006
Bht. 1,350,000,000
on November 30,
2007
Bht 1,600,000,000 on
December 3, 2008
Bht. 2,000,000,000
on July 5,
2010
The latest registered
capital was increased
to Bht. 2,000 million,
divided into 200
million shares of
Bht. 10 each
with fully paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Kamol
Phichitsingh Nationality: Thai Address : 80
Sukhumvit 23 Rd.,
Klongtoeynua, Wattana, Bangkok |
110,000,000 |
55.00 |
|
Ms. Sukhmeet
Phichitsingh Nationality: Thai Address : 80
Sukhumvit 23 Rd.,
Klongtoeynua,
Wattana, Bangkok |
20,000,000 |
10.00 |
|
Mr. Santhit
Phichitsingh Nationality: Thai Address : 80
Sukhumvit 23 Rd.,
Klongtoeynua,
Wattana, Bangkok |
20,000,000 |
10.00 |
|
Mr. Amorn
Phichitsingh Nationality: Thai Address : 80
Sukhumvit 23 Rd.,
Klongtoeynua, Wattana,
Bangkok |
20,000,000 |
10.00 |
|
Mrs. Kiran Hora Nationality: Thai Address : 20/4
Sukhumvit 24 Rd.,
Klongtoey,
Bangkok |
16,000,000 |
8.00 |
|
Mrs. Baljeet
Kaur Phichitsingh Nationality: Thai Address : 80
Sukhumvit 23 Rd.,
Klongtoeynua,
Wattana, Bangkok |
10,000,000 |
5.00 |
|
Mr. Surjeet Singh
Hora Nationality: Thai Address : 20/4
Sukhumvit 24 Rd.,
Klongtoey,
Bangkok |
4,000,000 |
2.00 |
Total Shareholders : 7
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No.
of Share |
%
Shares |
|
|
|
|
|
|
Thai |
7 |
200,000,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
200,000,000 |
100.00 |
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO. :
Lt. Chumsri
Taweekiat No. 1626
Note:
The 2014 financial
statement was not
submitted to the
Commercial Registration
Department during investigation.
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 |
18,716,428.54 |
69,438,036.83 |
73,409,818.48 |
|
Short-term
Investment |
7,249.57 |
695,553,810.72 |
500,002,031.18 |
|
Trade Accounts and
Other Receivable |
2,564,850,216.92 |
2,146,158,231.10 |
1,868,668,126.31 |
|
Short-term Loan |
1,176,599,395.62 |
413,825,646.80 |
360,198,387.78 |
|
Inventories
|
780,911,492.00 |
1,525,184,646.85 |
1,831,071,526.67 |
|
Other Current Assets
|
- |
- |
51,653,740.55 |
|
|
|
|
|
|
Total Current Assets
|
4,541,084,782.65 |
4,850,160,372.30 |
4,685,003,630.97 |
|
Other
Long-term Investment |
10,387,437.50 |
10,387,437.50 |
5,157,425.74 |
|
Fixed Assets
|
1,899,756,100.15 |
2,274,489,404.20 |
2,626,017,984.70 |
|
Deferred Income Tax |
2,157,253.32 |
466,727.60 |
- |
|
Other
Non-current Assets |
102,484,651.81 |
119,743,371.29 |
139,925,966.09 |
|
Total Assets |
6,555,870,225.43 |
7,255,247,312.89 |
7,456,105,007.50 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from
Financial Institution |
3,367,409,854.20 |
3,415,626,957.52 |
3,189,936,836.82 |
|
Trade Accounts and
Other Payable |
937,039,703.23 |
928,047,157.48 |
725,044,005.68 |
|
Current Portion
of Long-term Loan |
147,191,712.76 |
222,066,852.00 |
240,786,023.75 |
|
|
|
|
|
|
Total Current Liabilities |
4,451,641,270.19 |
4,565,740,967.00 |
4,155,766,866.25 |
|
Long-term
Loans |
1,767,560,627.28 |
1,802,867,922.54 |
1,706,995,005.78 |
|
Other
Non-current Liabilities |
418,884.80 |
674,927.87 |
2,283,375.15 |
|
Total
Liabilities |
6,219,620,782.27 |
6,369,283,817.41 |
5,865,045,247.18 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital :
Baht 10 par
value Authorized &
issued share capital
200,000,000 shares
|
2,000,000,000.00 |
2,000,000,000.00 |
2,000,000,000.00 |
|
|
|
|
|
|
Capital Paid |
2,000,000,000.00 |
2,000,000,000.00 |
2,000,000,000.00 |
|
Retained Earning - Unappropriated [Deficit] |
[1,663,750,556.84] |
[1,114,036,504.52] |
[408,940,239.68] |
|
Total Shareholders'
Equity |
336,249,443.16 |
885,963,495.48 |
1,591,059,760.32 |
|
Total
Liabilities & Shareholders' Equity |
6,555,870,225.43 |
7,255,247,312.89 |
7,456,105,007.50 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales &
Service Income |
4,921,597,475.43 |
5,950,835,686.66 |
5,201,781,658.09 |
|
Other Income |
83,972,864.01 |
94,570,839.84 |
62,570,770.12 |
|
Total Revenues |
5,005,570,339.44 |
6,045,406,526.50 |
5,264,352,428.21 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Sales
& Service |
5,028,750,160.18 |
6,211,727,540.18 |
4,880,947,302.01 |
|
Selling Expenses |
146,031,997.28 |
145,227,141.62 |
122,192,401.93 |
|
Administrative Expenses |
83,514,917.88 |
81,990,942.49 |
74,972,991.02 |
|
Total Expenses
|
5,258,297,075.34 |
6,438,945,624.29 |
5,078,112,694.96 |
|
|
|
|
|
|
Profit / [Loss]
before Financial Cost
|
[252,726,735.90] |
[393,539,097.79] |
186,239,733.25 |
|
Financial Cost |
[295,651,219.10] |
[311,698,459.45] |
[299,159,992.48] |
|
|
|
|
|
|
Net Profit / [Loss]
|
[548,377,955.00] |
[705,237,557.24] |
[112,920,259.23] |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.02 |
1.06 |
1.13 |
|
QUICK RATIO |
TIMES |
0.84 |
0.73 |
0.67 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.59 |
2.62 |
1.98 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.75 |
0.82 |
0.70 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
56.68 |
89.62 |
136.93 |
|
INVENTORY TURNOVER |
TIMES |
6.44 |
4.07 |
2.67 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
190.22 |
131.64 |
131.12 |
|
RECEIVABLES TURNOVER |
TIMES |
1.92 |
2.77 |
2.78 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
68.01 |
54.53 |
54.22 |
|
CASH CONVERSION CYCLE |
DAYS |
178.88 |
166.72 |
213.83 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
102.18 |
104.38 |
93.83 |
|
SELLING & ADMINISTRATION |
% |
4.66 |
3.82 |
3.79 |
|
INTEREST |
% |
6.01 |
5.24 |
5.75 |
|
GROSS PROFIT MARGIN |
% |
(0.47) |
(2.79) |
7.37 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(5.14) |
(6.61) |
3.58 |
|
NET PROFIT MARGIN |
% |
(11.14) |
(11.85) |
(2.17) |
|
RETURN ON EQUITY |
% |
(163.09) |
(79.60) |
(7.10) |
|
RETURN ON ASSET |
% |
(8.36) |
(9.72) |
(1.51) |
|
EARNING PER SHARE |
BAHT |
(2.74) |
(3.53) |
(0.56) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.95 |
0.88 |
0.79 |
|
DEBT TO EQUITY RATIO |
TIMES |
18.50 |
7.19 |
3.69 |
|
TIME INTEREST EARNED |
TIMES |
(0.85) |
(1.26) |
0.62 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(17.30) |
14.40 |
|
|
OPERATING PROFIT |
% |
(35.78) |
(311.31) |
|
|
NET PROFIT |
% |
22.24 |
(524.54) |
|
|
FIXED ASSETS |
% |
(16.48) |
(13.39) |
|
|
TOTAL ASSETS |
% |
(9.64) |
(2.69) |
|
ANNUAL
GROWTH : RISKY
An annual sales growth is -17.3%. Turnover has decreased
from THB
PROFITABILITY
: RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
(0.47) |
Deteriorated |
Industrial Average |
(2.02) |
|
Net Profit Margin |
(11.14) |
Deteriorated |
Industrial Average |
(2.07) |
|
Return on Assets |
(8.36) |
Deteriorated |
Industrial Average |
(2.18) |
|
Return on Equity |
(163.09) |
Deteriorated |
Industrial Average |
(5.38) |
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 -0.47%.
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
-11.14%. 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 -8.36%.
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 -163.09%.
Trend of the average competitors in the same industry for
last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY
: RISKY
LIQUIDITY
RATIO
|
Current Ratio |
1.02 |
Satisfactory |
Industrial Average |
1.12 |
|
Quick Ratio |
0.84 |
|
|
|
|
Cash Conversion Cycle |
178.88 |
|
|
|
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 1.02 times in 2013, decreased from 1.06 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 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 0.84
times in 2013, increased from 0.73 times, by excluding inventory, the company may
have problems meeting current liabilities.
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 179 days.
Trend of the average competitors in the same industry for
last 5 years
Current Ratio Downtrend
LEVERAGE
: RISKY
LEVERAGE
RATIO
|
Debt Ratio |
0.95 |
Acceptable |
Industrial Average |
0.64 |
|
Debt to Equity Ratio |
18.50 |
Risky |
Industrial Average |
1.77 |
|
Times Interest Earned |
(0.85) |
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 -0.86 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 0.95 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
: SATISFACTORY
ACTIVITY
RATIO
|
Fixed Assets Turnover |
2.59 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.75 |
Acceptable |
Industrial Average |
1.05 |
|
Inventory Conversion Period |
56.68 |
|
|
|
|
Inventory Turnover |
6.44 |
Impressive |
Industrial Average |
3.21 |
|
Receivables Conversion Period |
190.22 |
|
|
|
|
Receivables Turnover |
1.92 |
Deteriorated |
Industrial Average |
4.05 |
|
Payables Conversion Period |
68.01 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.92
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 90 days at the
end of 2012 to 57 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 4.07 times in year 2012 to 6.44 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.75
times and 0.82 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 Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.23 |
|
|
1 |
Rs.102.20 |
|
Euro |
1 |
Rs.72.57 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.