MIRA INFORM REPORT
|
Report No. : |
327421 |
|
Report Date : |
20.06.2015 |
IDENTIFICATION DETAILS
|
Name : |
LUCKYTEX
[THAILAND] PUBLIC COMPANY LIMITED |
|
|
|
|
Formerly Known As : |
LUCKYTEX
[THAILAND] COMPANY LIMITED |
|
|
|
|
Registered Office : |
5th Floor, Bubhajit Building,
20 North Sathorn Road, Silom, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
18.03.1960 |
|
|
|
|
Com. Reg. No.: |
0107537002214 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Exporter and Distributor of Textiles. |
|
|
|
|
No. of Employees : |
2,887 |
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,
generally pro-investment policies, and strong export industries, Thailand has
historically had a strong economy due in part to 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 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
LUCKYTEX [THAILAND] PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 5th FLOOR,
BUBHAJIT BUILDING,
20 NORTH
SATHORN ROAD, SILOM,
BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66]
2266-6600-7
FAX :
[66] 2238-3957-8
E-MAIL
ADDRESS : -
WEBSITE : http://www.toray.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1960
REGISTRATION
NO. : 0107537002214 [Former : BOR.MOR.JOR.468]
TAX
ID NO. : 3101048148
CAPITAL
REGISTERED : BHT.
518,400,000
CAPITAL
PAID-UP : BHT.
518,400,000
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
YUICHI MANABE, JAPANESE
MANAGING DIRECTOR
NO.
OF STAFF : 2,887
LINES
OF BUSINESS : TEXTILE
MANUFACTURER, EXPORTER
AND
DISTRIBUTOR
CORPORATE
PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
FOR NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT
WITH GOOD PERFORMANCE
HISTORY
The subject was
initially established on
March 18, 1960
as a private
limited company under the
style name “Luckytex
[Thailand] Company Limited”
by Thai and
Chinese investors, in
order to manufacture
and market various
kinds of fabric
products to both
domestic and international
markets, with BOI
promoted. The subject
was listed on
the Stock Exchange
of Thailand on
March 17, 1989,
and converted into
public company, named
LUCKYTEX [THAILAND] PUBLIC
COMPANY LIMITED, on
June 16, 1994
respectively. Subject is
a member of
Thai Toray group
of companies, which
are subsidiary of
Toray Industries Inc.
of Japan. It
currently employs 2,887 staff.
The subject’s registered
address is 5th Flr.,
Bubhajit Bldg., 20
North Sathorn Rd.,
Silom, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Prakit Pradipasen |
|
Thai |
73 |
|
Mr. Chaleo Wanasawat |
|
Thai |
71 |
|
Mr. Ekchai Chansue |
|
Thai |
58 |
|
Mr. Yuichi Manabe |
[x] : Chairman |
Japanese |
57 |
|
Mr. Puchong Temcharoen |
|
Thai |
63 |
|
Mr. Kin Shing Li |
|
British |
62 |
|
Mr. Bancha Kittiphatanaphong |
[x] |
Thai |
61 |
|
Mr. Suvanchai Urarungroj |
|
Thai |
57 |
|
Mr. Delman Lee |
[x] |
British |
48 |
|
Mr. Hirohito Minowa |
|
Japanese |
52 |
|
Mr. Ryusuke Chono |
|
Japanese |
53 |
|
Mr. Mikio Kanda |
[x] |
Japanese |
53 |
|
Mr. Tsuyoshi Irisa |
|
Japanese |
42 |
|
Mr. Tsukasa Shiba |
[x] |
Japanese |
53 |
AUTHORIZED
PERSON
Two of the
above mentioned directors [x]
jointly sign on
behalf of the
subject with the
company’s affixed.
MANAGEMENT
Mr. Yuichi Manabe
is the Managing
Director.
He is Japanese
nationality with the
age of 57
years old.
Mr. Bancha Kittiphatanaphong is
the Mill Manager
[Factory I].
He is
Thai nationality with the
age of 61
years old.
Mr. Hirohito Minowa is
the General Manager
[Production].
He is
Japanese nationality with
the age of
52 years old.
Mr. Kin Shing Li
is the Deputy
Managing Director & Mill Manager
[Factory III].
He is British
nationality with the age
of 62 years
old.
Mr. Mikio Kanda
is the General
Manager [Administration Division].
He is Japanese
nationality with the
age of 53
years old.
Mr. Tsukasa Shiba
is the General
Manager [Sales Division].
He is Japanese nationality with the age of 53 years old.
Mr. Puchong Temcharoen
is the General
Manager [Human Resources
Department].
He is Thai
nationality with the
age of 63
years old.
Mr. Suvanchai Urarungroj is
the General Manager
[Spun Fabric Sales Department].
He is Thai
nationality with the
age of 57
years old.
BUSINESS
OPERATIONS
The subject’s activity
is a manufacturer,
exporter and distributor
of fabrics which
can be divided
into 4 categories
as follows:
1. Spun fabric:
the polyester, polyester
and cotton blended, and
100% cotton fabrics.
2. Filament fabric:
100% polyester filament
fabric, twill, lining
and satin.
3. Denim fabric:
100% cotton fabric
for jeans, stretch
denim fabric and
color denim fabrics.
4. Industrial material
products: cord for
rubber material reinforcement
and fabric for
airbag.
PRODUCTION CAPACITY
Product Capacity
1. Factory I [Yarn
spinning and Fabric
weaving]
- Yarn
spinning 2.8 million
pounds per month
- Fabric
weaving 8.0 million
yards per month
2. Factory II [Spun
and Filament fabric]
- Spun
fabric 8.5 million
yards per month
- Filament
fabric 4.5 million
yards per month
3. Factory III [Fabric
weaving]
- Yarn
for denim 1.0 million
pounds per month
- Denim
fabric 0.78 million
yards per month
- Taffeta
fabric 4.4 million
yards per month
4. Industrial Material Products
- Polyester
cord 60 tons
per month
- Airbag
fabric 2.7 million
meters per month
PURCHASE
60% of raw material
such as cotton, polyester
staple fiber, polyester
filament yarn, chemicals
are purchased from
local supplier, the
remaining 40% is
imported from Japan, Hong Kong,
Africa, Australia, Germany, Indonesia,
Malaysia and U.S.A.
MAJOR SUPPLIER
Thai Toray Synthetics
Co., Ltd. : Thailand
SALES [LOCAL]
Most of the
products are supplied
to leading garment
manufacturers both locally
and international, such
brand name as
“Mark and Spencer”,
“Phillips Van-Heusen”, “British
Home Store”, “Levi” and
etc. 54% of the products
is sold to
local manufacturers, mainly
in textiles, garment
and automotive industries.
EXPORT [as of
December 2014]
46% of its
products is exported
to many countries
in Asia [85.70%], Europe [11.11%], America [2.65%], Africa [0.46]
and Australia [0.08%].
REVENUE
STRUCTURE
[Unit : million baht]
|
Product |
2014 |
2013 |
||
|
|
Amount |
% |
Amount |
% |
|
Domestic Income |
|
|
|
|
|
Textile Products |
1,754 |
19.09 |
1,669 |
19.65 |
|
Industrial Materials |
2,845 |
30.97 |
2,952 |
34.76 |
|
Total |
4,599 |
50.06 |
4,621 |
54.41 |
|
Oversea income |
|
|
|
|
|
Textile Products |
3,366 |
36.64 |
3,007 |
35.41 |
|
Industrial Materials |
1,221 |
13.29 |
865 |
10.18 |
|
Total |
4,587 |
49.93 |
3,872 |
45.59 |
|
|
|
|
|
|
|
Total Income |
9,186 |
100.00 |
8,493 |
100.00 |
RELATED/
AFFILIATED COMPANY
Thai Toray Synthetics
Company Limited
Business Type: Manufacturer
and distributor of
fiber and plastic
products
Investment : 19.75%
held by the
subject
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 the past
two years.
CREDIT
Purchasing terms are
by cash or
on the credits
term of 30-60 days.
Imports are by
L/C on the
credits term of
60-90 days &
T/T.
Selling terms are
by cash or on the
credits term of
30-60 days.
Exports are against
L/C at sight
& T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office :
333 Silom Rd.,
Silom, Bangrak, Bangkok]
Kasikornbank Public Co.,
Ltd.
The Siam Commercial Bank
Public Co., Ltd.
Standard Chartered Bank
[Thai] Public Co.,
Ltd.
Bank of Tokyo-Mitsubishi UFJ
Ltd.
EMPLOYMENT
The subject employs
2,887 office staff
and factory workers
comprising:
Head Office :
103 staff
Factory I : 1,200 staff
Factory II : 779 staff
Factory III :
805 staff
Total : 2,887 staff
LOCATION
DETAILS
The premise is
rented for operating
an administrative office
at the heading
address in a
commercial area
Factory I is
at 38 Moo
14, Suksawad Road,
A. Phrapradaeng, Samutprakarn
10130 on 168,000
sq. m. of area.
Factory II is
at 99 Moo
3, Sukhumvit Road,
A. Muang, Samutprakarn 10280
on 166,400 sq. m.
of area.
Factory III is
at 305 Moo
4, Sukhumvit Road,
A. Muang, Samutprakarn
10280 on 185,600
sq. m. of area.
COMMENT
In 2014, the
Thai domestic market
was sluggish especially
in the first
half due to the political uncertainty since
the end of 2013.
The political situation
was stabilized in
the second half
but the market
has not yet
been fully recovered
due to some
factors including a drop in agricultural prices.
On the other
hand, exports were
relatively stable partly
because of the stronger US Dollar,
despite different conflicts
around the world
affecting the economy.
In
terms of the
subject’s business, it
has achieved higher
sales and profits
in 2014 due to an increase of
sales in shirts
for the US,
uniforms for the
EU, ethnic costumes
for the Middle East
and industrial materials
mainly Nylon 66
fabrics for airbags
as a result of
its efforts to expand
exports.
FINANCIAL
INFORMATION
The capital was
initially registered at
Bht. 5,000,000 divided
into 10,000 shares
at Bht. 500
each.
The capital was
increased later as
followings:
Bht.
360,000,000 on March
13, 1984
Bht.
518,400,000 on November
17, 1988
The latest capital
was divided into
51,840,000 shares of
Bht. 10 each
with fully paid.
MAIN
SHAREHOLDERS
[as at
April 10, 2015]
|
NAME |
HOLDING |
% |
|
Toray Industries, Inc. |
25,401,600 |
49.00 |
|
South China [Jersey]
Holdings Limited |
10,316,000 |
19.90 |
|
The Lees Charitable
Foundation Limited |
1,498,200 |
2.89 |
|
Mrs. Chantima Teepasuwan |
1,191,300 |
2.30 |
|
Thai Toray Synthetics
Co., Ltd. |
1,066,800 |
2.06 |
|
Sub. Lt. Kitti Boonpho-apichart |
870,700 |
1.68 |
|
Mr. Pitak Noppraphan |
739,800 |
1.43 |
|
Arthit-Chan Co., Ltd. |
671,000 |
1.29 |
|
Mr. Chatchai Teepasuwan |
600,000 |
1.16 |
|
Mr. Padej Azai |
600,000 |
1.16 |
|
Mr. Kamolpat Teepasuwan |
553,300 |
1.07 |
|
Mr. Prawit Chansrichawla |
463,400 |
0.89 |
|
Mr. Bayansingh Chansrichawla |
463,400 |
0.89 |
|
Mr. Amratpal Singh Chansrichawla |
463,400 |
0.89 |
|
Ms. Anong Teepasuwan |
442,300 |
0.85 |
|
K.S.M. Company Limited |
400,000 |
0.77 |
|
Others |
6,098,800 |
11.77 |
Total Shareholders : 958
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Ekasit Chuthamstit No.
4195
BALANCE
SHEET [BAHT]
The
financial figures published
for December 31,
2014, 2013 & 2012
were:
ASSETS
|
Current Assets |
2014 |
2013 [Restated] |
2012 |
|
|
|
|
|
|
Cash and cash equivalents |
75,917,105 |
93,034,630 |
47,679,267 |
|
Trade accounts receivable |
1,502,757,924 |
1,562,417,557 |
1,382,073,636 |
|
Other receivables |
94,559,640 |
72,305,642 |
1,578,946,578 |
|
Inventories |
1,701,443,207 |
1,734,290,541 |
68,094,047 |
|
|
|
|
|
|
Total Current Assets
|
3,374,677,876 |
3,462,048,370 |
3,076,793,528 |
|
Investment in associate |
494,433,745 |
494,433,745 |
494,433,745 |
|
Other long-term investment |
172,122,250 |
125,042,450 |
142,077,355 |
|
Property, plant and equipment |
4,103,223,649 |
3,835,572,341 |
3,705,717,488 |
|
Intangible assets |
29,261,795 |
18,925,139 |
18,899,328 |
|
Deferred tax assets |
- |
6,444,338 |
- |
|
Other non-current assets |
18,200,398 |
20,161,632 |
21,598,664 |
|
Total Assets |
8,191,919,713 |
7,962,628,015 |
7,459,520,108 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 [Restated] |
2012 |
|
|
|
|
|
|
Short-term loan from financial institutions |
2,045,616,000 |
2,404,239,800 |
2,026,220,000 |
|
Trade accounts payable |
699,542,215 |
598,007,638 |
806,791,772 |
|
Other Payable |
430,812,736 |
396,747,876 |
207,907,789 |
|
Current portion of long-term
loan from financial institutions |
- |
300,000,000 |
- |
|
Accrued income tax |
44,777,626 |
45,097,006 |
12,451,154 |
|
|
|
|
|
|
Total Current Liabilities |
3,220,751,577 |
3,744,092,320 |
3,053,370,715 |
|
Long-term loans from financial institutions |
511,006,173 |
- |
300,000,000 |
|
Deferred tax liabilities |
357,376 |
- |
- |
|
Employee benefits obligation |
261,759,649 |
264,251,561 |
164,660,638 |
|
Total Liabilities |
3,993,874,775 |
4,008,343,881 |
3,518,031,353 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 51,840,000 shares |
518,400,000 |
518,400,000 |
518,400,000 |
|
|
|
|
|
|
Capital Paid |
518,400,000 |
518,400,000 |
518,400,000 |
|
Premium on Share
Capital |
333,489,160 |
333,489,160 |
333,489,160 |
|
Retained Earning Appropriated for Statutory reserve |
51,840,000 |
51,840,000 |
51,840,000 |
|
General reserve |
211,000,000 |
211,000,000 |
211,000,000 |
|
Unappropriated |
3,001,802,980 |
2,766,806,816 |
2,719,099,492 |
|
Other components of
equity |
81,512,798 |
72,748,158 |
107,660,103 |
|
Total Shareholders' Equity |
4,198,044,938 |
3,954,284,134 |
3,941,488,755 |
|
Total Liabilities &
Shareholders' Equity |
8,191,919,713 |
7,962,628,015 |
7,459,520,108 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 [Restated] |
2012 |
|
|
|
|
|
|
Revenue from sale
of goods |
9,186,022,746 |
8,492,842,794 |
7,832,978,193 |
|
Net foreign exchange gain |
74,411,523 |
41,578,975 |
44,798,246 |
|
Gain from sale
of property and equipment |
- |
- |
3,972,313 |
|
Reversal of provision
for claim expense |
- |
- |
109,940,000 |
|
Other income |
37,467,052 |
26,994,050 |
32,445,256 |
|
Total Revenues |
9,297,901,321 |
8,561,415,819 |
8,024,134,008 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of sales
of goods |
8,264,477,122 |
7,692,267,773 |
7,054,914,277 |
|
Selling expenses |
331,126,775 |
304,697,170 |
350,708,824 |
|
Administrative expenses |
190,192,735 |
190,274,039 |
248,470,125 |
|
Loss from sale of equipment |
- |
13,049,424 |
- |
|
Finance costs |
46,539,559 |
60,311,787 |
47,638,385 |
|
Total Expenses |
8,832,336,191 |
8,260,600,193 |
7,701,731,611 |
|
Profit before Income Tax |
465,565,130 |
300,815,626 |
322,402,397 |
|
Income Tax |
[91,173,151] |
[63,705,739] |
[24,121,244] |
|
|
|
|
|
|
Net Profit / [Loss] |
374,391,979 |
237,109,887 |
298,281,153 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.05 |
0.92 |
1.01 |
|
QUICK RATIO |
TIMES |
0.52 |
0.46 |
0.99 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.24 |
2.21 |
2.11 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.12 |
1.07 |
1.05 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
75.14 |
82.29 |
3.52 |
|
INVENTORY TURNOVER |
TIMES |
4.86 |
4.44 |
103.61 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
59.71 |
67.15 |
64.40 |
|
RECEIVABLES TURNOVER |
TIMES |
6.11 |
5.44 |
5.67 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
30.90 |
28.38 |
41.74 |
|
CASH CONVERSION CYCLE |
DAYS |
103.96 |
121.07 |
26.18 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
89.97 |
90.57 |
90.07 |
|
SELLING & ADMINISTRATION |
% |
5.68 |
5.83 |
7.65 |
|
INTEREST |
% |
0.51 |
0.71 |
0.61 |
|
GROSS PROFIT MARGIN |
% |
11.25 |
10.23 |
12.37 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.07 |
3.54 |
4.12 |
|
NET PROFIT MARGIN |
% |
4.08 |
2.79 |
3.81 |
|
RETURN ON EQUITY |
% |
8.92 |
6.00 |
7.57 |
|
RETURN ON ASSET |
% |
4.57 |
2.98 |
4.00 |
|
EARNING PER SHARE |
BAHT |
7.22 |
4.57 |
5.75 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.49 |
0.50 |
0.47 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.95 |
1.01 |
0.89 |
|
TIME INTEREST EARNED |
TIMES |
10.00 |
4.99 |
6.77 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
8.16 |
8.42 |
|
|
OPERATING PROFIT |
% |
54.77 |
(6.70) |
|
|
NET PROFIT |
% |
57.90 |
(20.51) |
|
|
FIXED ASSETS |
% |
6.98 |
3.50 |
|
|
TOTAL ASSETS |
% |
2.88 |
6.74 |
|
ANNUAL
GROWTH: EXCELLENT
An annual sales growth is 8.16%. Turnover has increased from THB
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.25 |
Impressive |
Industrial Average |
3.64 |
|
Net Profit Margin |
4.08 |
Impressive |
Industrial Average |
(0.41) |
|
Return on Assets |
4.57 |
Impressive |
Industrial Average |
(0.12) |
|
Return on Equity |
8.92 |
Impressive |
Industrial Average |
(0.25) |
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. Gross Profit Margin is 11.25%. 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. Net Profit Margin ratio is 4.08%,
higher figure when compared with those of its average competitors in the same
industry, indicated that business was an efficient operators 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
4.57%, 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 8.92%, 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 : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.05 |
Satisfactory |
Industrial Average |
1.17 |
|
Quick Ratio |
0.52 |
|
|
|
|
Cash Conversion Cycle |
103.96 |
|
|
|
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 1.05 times in 2014, decrease from 0.92 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 0.52 times in 2014,
decrease from 0.46 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 104 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.49 |
Impressive |
Industrial Average |
0.70 |
|
Debt to Equity Ratio |
0.95 |
Impressive |
Industrial Average |
2.50 |
|
Times Interest Earned |
10.00 |
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 10.01 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 0.49 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 |
2.24 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.12 |
Impressive |
Industrial Average |
1.02 |
|
Inventory Conversion Period |
75.14 |
|
|
|
|
Inventory Turnover |
4.86 |
Impressive |
Industrial Average |
2.16 |
|
Receivables Conversion Period |
59.71 |
|
|
|
|
Receivables Turnover |
6.11 |
Impressive |
Industrial Average |
2.80 |
|
Payables Conversion Period |
30.90 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.11 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 82 days at the
end of 2013 to 75 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 4.44 times in year 2013 to 4.86 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.12 times and 1.07
times in 2014 and 2013 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.63.82 |
|
|
1 |
Rs.101.26 |
|
Euro |
1 |
Rs.72.36 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
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.