MIRA INFORM REPORT
|
Report No. : |
356963 |
|
Report Date : |
26.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
JONG STIT CO.,
LTD. |
|
|
|
|
Registered Office : |
470 Bangkhunthien-Chaithalay Road, Samaedam, Bangkhunthien, Bangkok 10150, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
08.01.1980 |
|
|
|
|
Com. Reg. No.: |
0105523000336 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of Textile. |
|
|
|
|
No. of Employees : |
3,000 |
RATING & COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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 |
A2 |
A2 |
|
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'etat, 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
JONG STIT CO., LTD.
SUMMARY
ADDRESS : 470 BANGKHUNTHIEN-CHAITHALAY ROAD,
SAMAEDAM, BANGKHUNTHIEN,
BANGKOK 10150,
THAILAND
TELEPHONE NO : [66] 2416-0112-8,
02416-1111
TELEFAX
:
[66] 2416-6320-3
emkt@jongstit.com
E-MAIL
ADDRESS : mkt@jongstit.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1980
REGISTRATION
NO. : 0105523000336
TAX
ID NO. : 3101104639
CAPITAL REGISTERED : BHT.
1,190,000,000
CAPITAL PAID-UP :
BHT. 1,190,000,000
SHAREJOLDER’S PROPORTION : THAI : 100%
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SONGKRAM CHEEVAPRAWATDAMRONG,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 3,000
LINES
OF BUSINESS : TEXTILE
MANUFACTURING
SERVICE
CORPORATE
PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The subject
was established on
January 8, 1980 as
a private limited
company under the
registered name JONG
STIT CO., LTD., by Thai
Group, Cheevaprawatdamrong family, with
the business objective
to manufacture textile.
The
subject is one
of the top - five
leading synthetic textile
& fabric manufacturers
in Thailand with
experience over 60
years. From its
origin in 1940,
the subject has
been an innovator
in textile field
and conducted its
business with the
purpose of growing
into a notable
organization.
Presently,
its business has
expanded to manufacture
and distribute apparels
and home products.
It currently employs
approximately 3,000 staff.
The
subject’s registered address
was initially located
at 34 Moo 1,
Bangkhunthien-Chaithalay Rd.,
Samaedam, Bangkhunthien, Bangkok
10150.
On July 2,
2010, its registered
address was changed from
“34 Moo 1”
to “470” by
the Bangkhunthien District
Office, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Songkram
Cheevaprawatdamrong |
[x] |
Thai |
69 |
|
Mrs. Patcharaporn
Laolikhitnant |
[x] |
Thai |
66 |
|
Ms. Siriwan
Kongkaewrasamee |
|
Thai |
40 |
|
Mrs. Oraphan Sathienkijampai |
|
Thai |
60 |
AUTHORIZED
PERSON
One
of the above
directors [x] can
sign or both
of the rest
directors can jointly
sign on behalf of the subject with company’s
affixed.
MANAGEMENT
Mr. Songkram
Cheevaprawatdamrong is the
Managing Director.
He
is Thai nationality
with the age
of 69 years
old.
Mrs. Patcharaporn Laolikhitnant is
the Deputy Managing
Director.
She
is Thai nationality
with the age
of 66 years
old.
Mrs. Oraphan
Sathienkijampai is the Deputy
Managing Director [Finance
& Account].
She
is Thai nationality
with the age
of 60 years
old.
Ms. Siriwan
Kongkaewrasamee is the
Deputy Managing Director
[Marketing].
She
is Thai nationality
with the age
of 40 years
old.
Mr. Rungsan
Charoenkijmongkol is the
Production Manager.
He
is Thai nationality.
BUSINESS
OPERATIONS
The subject
is engaged in manufacturing
wide range of knitted
fabric, yarn products,
apparels and
home
products, as well as provide
servicing of fabric & yarn dyeing
and printing. The
products and
services
are as follows:
- Knitted Fabric: single
jersey, double jersey,
fleece jacquard, high twist,
interlock, mesh, ottoman,
- peach
skin, pique, spandex
and rib.
- Warp
Knitted Fabric: tricot
micro mesh, tricot
micro brush, tricot
dazzle, tricot half,
tricot fancy,
- two
way and net.
- Fleece
Fabric: anti-piling
fleece, micro fleece,
printed fleece, boucle
fleece, Sherpa fleece,
velour fabric, high
performance fleece / velour,
chamois, marled, fancy,
texture and pattern.
- Pile
Fabric:
polyester BOA, polyester BOA
jacquard, acrylic BOA and
high pile.
- Woven
Fabric: dyeing fabric
and printing fabric.
- Yarn:
textured yarn, twisted
yarn, spun yarn,
acrylic yarn and
chenille yarn.
- HomeTex: blanket,
throw, camping set,
curtain and lining
- Apparels: active
wear, sleep wear,
casual wear, bathrobe, jogging
set, jacket set
and sweatshirt
PRODUCTION CAPACITY [as of May 22, 2013]
|
Products |
Production capacity |
|
Yarn
Spinning |
|
|
Polyester |
|
|
-
Spun Yarn |
1,800 Tons / Month |
|
-
Polyester Textured Yarn |
9,000 Tons / Month |
|
-
Polyester Twisted Yarn |
900 Tons / Month |
|
Acrylic
Yarn |
|
|
- Acrylic
Yarn |
1,200 Tons / Month |
|
Knitting |
|
|
-
Knitted Fabric |
1,500 Tons / Month |
|
-
Tricot Fabric |
1,500 Tons / Month |
|
-
Fleece Fabric |
1,800 Tons / Month |
|
-
Pile Fabric |
1,000 Tons / Month [2 Million Yards / Month] |
|
Dyeing |
|
|
-
Yarn Dyeing |
4,000 Tons / Month |
|
-
Fabric Dyeing |
8,000 Tons / Month |
|
-
Woven Fabric Dyeing |
700 Tons / Month |
|
Printing |
|
|
-
Flat Screen |
1.3
Million
Yards / Month [200 Tons / Month] |
|
-
Transfer Printing |
200,000 yards
/ Month [45 Tons / Month] |
|
Home
Textile |
|
|
-
Polyester Blanket |
1,500,000 Pieces / Month |
Fashinno
-
Apparels |
600,000 Pieces / Month |
IMPORT
[COUNTRIES]
Machinery,
power looms, polyester
and acrylic yarn, cotton yarn,
PVC resin
and
textile chemicals are
imported from Taiwan,
Germany, Japan, Singapore,
Republic
of China, Australia,
Taiwan, India and
United Kingdom.
MAJOR
SUPPLIERS
Formosa
Plastic Ltd. :
Taiwan
Product :
Polyester & acrylic
fiber
IRPC
Public Company Limited : Thailand
Product :
PVC resin
SALES
[LOCAL]
80%
of products is
sold locally to
manufacturers and wholesalers.
EXPORT
[COUNTRIES]
20% of
its products is
exported to United
States of America, Australia,
Singapore, Hong Kong, Taiwan,
Indonesia, Sri Lanka, Bangladesh, Canada, Egypt, India,
Korea, Japan, Cambodia,
Vietnam, Republic of
China, Myanmar, and
the countries in
Africa and Europe
region.
MAJOR
CUSTOMERS
Textile
Mart Co., Ltd. : Thailand
Ronit
Textile Inc. : U.S.A.
SUBSIDIARIES
& AFFILIATED COMPANIES
Textile Mart Co.,
Ltd.
Business Type : Manufacturer
of textiles
Fashion Hometex Co.,
Ltd.
Business Type : Manufacturer
of blankets & apparel
products
Fashinno Co., Ltd.
Business Type : Manufacturer
and exporter of
garment
Thai Polyester Co.,
Ltd.
Business Type : Manufacturer
and distributor of
polyester yarns
Jong Stit Plush Co.,
Ltd.
Business Type : Manufacturer
and distributor of
textiles
ASSOCIATION
The subject is
a member of Federation
of Thai Industries.
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 for the
past two years.
CREDIT
Sales
are by cash
or on the credits
term of 30-60
days.
Local
bills are paid by
cash or on
the credits term
of 30-60 days.
Imports
are by L/C
at sight &
T/T.
Exports
are against L/C
at sight &
T/T
BANKING
Kasikornbank Public Co., Ltd
[Head Office :
1 Kasikorn Lane,
Rajburana Rd., Rajburana,
Bangkok]
[Phrapradaeng Branch : Poochaosamingprai Rd.,
Phrapradaeng, Samutprakarn]
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
3,000 staff. [office
staff and factory
workers]
LOCATION
DETAILS
The premise is owned for operating
administrative office, factory
and warehouse at the heading
address. It is
located in industrial
area.
Factories/Branches
-
993 Bangkhunthien-Chaithalay Rd.,
Samaedam, Bangkhunthien, Bangkok
-
993/1
Bangkhunthien-Chaithalay
Rd., Samaedam, Bangkhunthien, Bangkok
-
136/1
Moo 1, Ekachai
Rd., Kaeray, Krathumban,
Samutsakorn
-
136/2 Moo
1, Ekachai Rd.,
Kaeray, Krathumban, Samutsakorn
-
888 Moo
1, Chachoengsao-Sattaheep Rd., Nongpaikaew, Banbueng,
Chonburi
-
136 Moo
1, Ekachai Rd.,
Kaeray, Krathumban, Samutsakorn
-
97 Moo
1, Ekachai Rd.,
Kaeray, Krathumban, Samutsakorn
-
99 Moo
1, Ekachai Rd.,
Kaeray, Krathumban, Samutsakorn
-
136/3 Moo
1, Ekachai Rd.,
Kaeray, Krathumban, Samutsakorn
COMMENT
The
company is one
of the top-five
leading synthetic textile
and fabric manufacturers
in Thailand with
long experience over
60 years.
It has been an innovator in textile field
and conduct its business
with continuous dedication
in improving and
developing a wide range of
products including Yarns,
Polyester fabrics, Pile
fabrics [Toys and
Garments] and Blankets.
Despite
economic sluggish and
industrial slowdown, the
subject is able to
maintain a solid
business.
FINANCIAL INFORMATION
The
capital was initially registered
at Bht. 20
million, divided into
200,000 shares of
Bht. 100 each.
The
capital was increased
later as followings:
Bht. 120
million on June
17, 1991
Bht. 180
million on June
22, 1992
Bht. 250
million on October
4, 1993
Bht. 300
million on February
10, 1997
Bht. 800
million on December
23, 1998
Bht. 1,000
million on August
10, 2000
Bht. 1,150
million on March
30, 2004
Bht. 1,190
million on October
1, 2014
The
latest registered capital
was increased to
Bht. 1,190 million, divided
into 11,900,000 shares
of Bht. 100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
[as of October 1,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Patcharaporn
Laolikhitnant Nationality: Thai Address : 33
Moo 1, Bangkhunthien-Chaithalay,
Samaedam, Bangkhunthien, Bangkok |
5,022,121 |
42.20 |
|
Mr. Torpong
Cheevaprawatdamrong Nationality: Thai Address : 55
Moo 6, Rama 2
Rd., Samaedam, Bangkhunthien, Bangkok |
3,855,742 |
32.40 |
|
Mr. Songkram
Cheevaprawatdamrong Nationality: Thai Address : 55
Moo 6, Rama 2
Rd., Samaedam,
Bangkhunthien, Bangkok |
2,624,555 |
22.06 |
|
Jong Stit Industrial
Park Co., Ltd. Nationality: Thai Address : 470
Bangkhunthien-Chaitalay Road,
Samaedam, Bangkok |
336,182 |
2.82 |
|
Ms. Tuenjit
Cheevaprawatdamrong Nationality: Thai Address : 55 Moo
6, Rama 2 Rd.,
Samaedam,
Bangkhunthien, Bangkok |
30,100 |
0.25 |
|
Mr. Termsak
Cheevaprawatdamrong Nationality: Thai Address : 55
Moo 6, Rama 2
Rd., Samaedam, Bangkhunthien, Bangkok |
30,100 |
0.25 |
|
Others |
1,200 |
0.02 |
Total
Shareholders : 11
Share
Structure
[as at October
1, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
11 |
11,900,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
11 |
11,900,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mrs. Cholthicha Leelapanang
No. 1815
BALANCE
SHEET [BAHT]
The latest financial figures published as
at December 31,
2013, 2012 &
2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents
|
124,981,525.44 |
251,716,372.03 |
131,776,936.03 |
|
Short-term Investment |
283,245,437.26 |
- |
- |
|
Trade Accounts & Other Receivable |
763,839,444.25 |
611,889,165.37 |
837,007,229.14 |
|
Inventories |
1,095,057,431.06 |
1,636,104,336.32 |
976,937,642.09 |
|
Revenue Department Receivable |
13,119,235.78 |
8,155,198.02 |
19,059,603.19 |
|
Custom Tax Compensation |
2,830,620.86 |
2,228,587.94 |
2,210,048.40 |
|
Other Current Assets
|
5,311,058.09 |
54,602,398.16 |
24,216,679.86 |
|
|
|
|
|
|
Total Current Assets
|
2,288,384,752.74 |
2,564,696,057.84 |
1,991,208,138.71 |
|
|
|
|
|
|
Fixed Assets |
1,598,349,515.73 |
1,706,141,031.97 |
1,672,724,442.55 |
|
Intangible Assets |
646,108.93 |
849,989.65 |
105,952.59 |
|
Other Non-current Assets |
4,000.00 |
4,000.00 |
4,000.00 |
|
Total Assets |
3,887,384,377.40 |
4,271,691,079.46 |
3,664,042,533.85 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
900,362,126.90 |
744,241,894.63 |
523,962,734.88 |
|
Promissory Notes |
700,000,000.00 |
1,260,000,000.00 |
890,000,000.00 |
|
Accrued Income Tax |
3,963,691.14 |
3,659,167.13 |
2,912,110.60 |
|
Other Current Liabilities |
119,434,691.28 |
128,307,871.08 |
134,748,784.90 |
|
|
|
|
|
|
Total Current Liabilities |
1,723,760,509.32 |
2,136,208,932.84 |
1,551,623,630.38 |
|
Estimated Liabilities for Employee Benefits |
1,703,000.00 |
1,325,000.00 |
969,000.00 |
|
Total Liabilities |
1,725,463,509.32 |
2,137,533,932.84 |
1,552,592,630.38 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 11,500,000 shares |
1,150,000,000.00 |
1,150,000,000.00 |
1,150,000,000.00 |
|
|
|
|
|
|
Capital Paid |
1,150,000,000.00 |
1,150,000,000.00 |
1,150,000,000.00 |
|
Premium on Share
Capital |
300,000,000.00 |
300,000,000.00 |
300,000,000.00 |
|
Retained Earning - Unappropriated |
711,920,868.08 |
684,157,146.62 |
661,449,903.47 |
|
Total Shareholders' Equity |
2,161,920,868.08 |
2,134,157,146.62 |
2,111,449,903.47 |
|
Total Liabilities & Shareholders' Equity |
3,887,384,377.40 |
4,271,691,079.46 |
3,664,042,533.85 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales & Services -
Domestic |
5,425,546,219.80 |
5,276,848,874.74 |
5,278,522,472.21 |
|
Sales - Overseas |
2,216,071,824.21 |
1,579,257,517.58 |
2,109,591,803.89 |
|
Custom Duty Compensation |
8,586,601.96 |
8,211,885.28 |
8,521,088.57 |
|
Interest Income |
1,439,395.73 |
5,115,778.82 |
10,582,364.58 |
|
Other Income |
25,125,034.27 |
45,501,954.42 |
29,241,506.31 |
|
Gain / [Loss] on Exchange
Rate |
911,135.81 |
7,405,287.37 |
[2,758,440.80] |
|
Gain on Disposal
of Assets |
14,434,170.65 |
2,129,227.08 |
22,564,201.05 |
|
Total Revenues |
7,692,114,382.43 |
6,924,470,525.29 |
7,456,264,995.81 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Services
|
7,337,828,973.14 |
6,608,794,053.11 |
7,111,781,089.15 |
|
Selling Expenses |
153,854,534.85 |
142,229,451.30 |
164,851,921.05 |
|
Administrative Expenses |
132,875,913.24 |
111,278,737.64 |
116,787,432.53 |
|
Total Expenses |
7,624,559,421.23 |
6,862,302,242.05 |
7,393,420,442.73 |
|
|
|
|
|
|
Profit before Financial
Cost & Income Tax |
67,554,961.20 |
62,168,283.24 |
62,844,553.08 |
|
Financial Cost |
[30,755,635.02] |
[31,233,582.88] |
[34,056,450.74] |
|
Profit before Income
Tax |
36,799,326.18 |
30,934,700.36 |
28,788,102.34 |
|
Income Tax |
[9,035,604.72] |
[8,227,457.21] |
[10,308,218.07] |
|
|
|
|
|
|
Net Profit / [Loss] |
27,763,721.46 |
22,707,243.15 |
18,479,884.27 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.33 |
1.20 |
1.28 |
|
QUICK RATIO |
TIMES |
0.68 |
0.40 |
0.62 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.78 |
4.02 |
4.42 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.97 |
1.61 |
2.02 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
54.47 |
90.36 |
50.14 |
|
INVENTORY TURNOVER |
TIMES |
6.70 |
4.04 |
7.28 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
36.48 |
32.58 |
41.35 |
|
RECEIVABLES TURNOVER |
TIMES |
10.00 |
11.20 |
8.83 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
44.79 |
41.10 |
26.89 |
|
CASH CONVERSION CYCLE |
DAYS |
46.17 |
81.83 |
64.60 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
96.02 |
96.39 |
96.26 |
|
SELLING & ADMINISTRATION |
% |
3.75 |
3.70 |
3.81 |
|
INTEREST |
% |
0.40 |
0.46 |
0.46 |
|
GROSS PROFIT MARGIN |
% |
4.64 |
4.60 |
4.66 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.88 |
0.91 |
0.85 |
|
NET PROFIT MARGIN |
% |
0.36 |
0.33 |
0.25 |
|
RETURN ON EQUITY |
% |
1.28 |
1.06 |
0.88 |
|
RETURN ON ASSET |
% |
0.71 |
0.53 |
0.50 |
|
EARNING PER SHARE |
BAHT |
2.41 |
1.97 |
1.61 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.44 |
0.50 |
0.42 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.80 |
1.00 |
0.74 |
|
TIME INTEREST EARNED |
TIMES |
2.20 |
1.99 |
1.85 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
11.46 |
(7.20) |
|
|
OPERATING PROFIT |
% |
8.66 |
(1.08) |
|
|
NET PROFIT |
% |
22.27 |
22.88 |
|
|
FIXED ASSETS |
% |
(6.32) |
2.00 |
|
|
TOTAL ASSETS |
% |
(9.00) |
16.58 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 11.46%. Turnover has increased from THB
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
4.64 |
Impressive |
Industrial
Average |
(2.02) |
|
Net Profit Margin |
0.36 |
Impressive |
Industrial
Average |
(2.07) |
|
Return on Assets |
0.71 |
Impressive |
Industrial
Average |
(2.18) |
|
Return on Equity |
1.28 |
Impressive |
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 4.64%. 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 0.36%,
higher figure when compared with those of its average competitors in the same
industry, indicated that business was an efficient operator in a dominant position within its industry.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. Return on Assets ratio is
0.71%, 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 1.28%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profit in a dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.33 |
Impressive |
Industrial
Average |
1.12 |
|
Quick Ratio |
0.68 |
|
|
|
|
Cash Conversion Cycle |
46.17 |
|
|
|
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 1.33 times in 2013, increased from 1.2 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 0.68 times in 2013,
increased from 0.4 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 47 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.44 |
Impressive |
Industrial
Average |
0.64 |
|
Debt to Equity Ratio |
0.80 |
Impressive |
Industrial
Average |
1.77 |
|
Times Interest Earned |
2.20 |
Impressive |
Industrial
Average |
- |
Debt to Equity Ratio a measurement of how much suppliers, lenders,
creditors and obligors have committed to the company versus what the
shareholders have committed. A lower the percentage means that the company is using
less leverage and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 2.2 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 0.44 less than 0.5, most of the company's
assets are financed through equity.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Uptrend
Times Interest Earned Stable
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.78 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.97 |
Impressive |
Industrial
Average |
1.05 |
|
Inventory Conversion Period |
54.47 |
|
|
|
|
Inventory Turnover |
6.70 |
Impressive |
Industrial
Average |
3.21 |
|
Receivables Conversion Period |
36.48 |
|
|
|
|
Receivables Turnover |
10.00 |
Impressive |
Industrial
Average |
4.05 |
|
Payables Conversion Period |
44.79 |
|
|
|
The company's Account Receivable Ratio is calculated as 10.00 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 54 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 4.04 times in year 2012 to 6.7 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.97 times and 1.61
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.66.20 |
|
|
1 |
Rs.98.30 |
|
Euro |
1 |
Rs.72.41 |
|
Thai Baht |
1 |
Rs.1.84 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
HEE |
|
|
|
|
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.