MIRA INFORM REPORT
|
Report No. : |
322803 |
|
Report Date : |
19.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
JASPAL COMPANY LIMITED |
|
|
|
|
Registered Office : |
1054 Soi Sukhumvit 66/1, Sukhumvit Road, Bangchak, Prakanong, Bangkok 10260 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
13.10.1987 |
|
|
|
|
Com. Reg. No.: |
0105530052354 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject’s activities
are manufacturer, distributor
and exporter of
boutique apparels for
men and women such as
clothes, shoes, shoulder bags,
wallets, belts and
accessories. |
|
|
|
|
No. of Employees : |
1,150 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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
JASPAL COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 1054
SOI SUKHUMVIT 66/1,
SUKHUMVIT ROAD,
BANGCHAK, PRAKANONG,
BANGKOK 10260,
THAILAND
TELEPHONE : [66] 2367-2000-15
FAX : [66] 2744-7197
E-MAIL
ADDRESS : jaspal@jaspal.co.th
contact@jaspal.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1987
REGISTRATION
NO. : 0105530052354 [Former
: 5233/2530]
TAX
ID NO. : 3101473001
CAPITAL REGISTERED : BHT. 60,000,000
CAPITAL PAID-UP : BHT.
60,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER
31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
VISITH SINGHSACHATHET, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 1,150
LINES
OF BUSINESS : APPARELS
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
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 October
13, 1987 as
a private limited
company under the
name style JASPAL COMPANY LIMITED,
by Thai-Indian groups,
with the business
objective to manufacture
apparels to both local
and overseas markets. It
currently employs
approximately 1,150 staff.
The subject’s registered
address is 1054
Soi Sukhumvit 66/1,
Sukhumvit Rd., Bangchak,
Prakanong, Bangkok 10260,
and this is
the company’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Visant Singhsachathet |
|
Thai |
63 |
|
Mr. Visith Singhsachathet |
|
Thai |
60 |
|
Mr. Kiatisak Singhsachathet |
|
Thai |
54 |
|
Mr. Charan Singhsachathet |
|
Thai |
50 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Visith Singhsachathet is
the Managing Director.
He is Thai
nationality with the
age of 60
years old.
Mr. Charan Singhsachathet is the
Deputy Managing Director [Sales & Marketing].
He is Thai
nationality with the
age of 50
years old.
Mr. Yossathep Singhsachathet is
the Assistant Managing
Director.
He is Thai
nationality.
Mr. Viseth Singhsachathet the
Assistant Managing Director.
He is Thai
nationality.
Mr. Visant Singhsachathet is the Factory
Manager.
He is Thai
nationality with the
age of 63
years old.
BUSINESS OPERATIONS
The subject’s activities
are manufacturer, distributor
and exporter of
boutique apparels for
men and women such as
clothes, shoes, shoulder bags,
wallets, belts and
accessories under its
own brands “JASPAL”,
“CPS”, “CHAPS”, “CC-OO”,
as well as
contract manufacturer of the products
under many licensed brands
such as “LUMBER ATJACK”, “SISLEY”, “MAX MARA”, “RIDER”,
“MELISSA”, “ROYAL IVY”, “FOOTWORK”,
“FOOTWORK NOIR”, “SANTAS”, “LYN”, “LYN AROUND”, “SONORA”, “FRED
PERRY”
PURCHASE
80% of raw materials such
as fabric and
accessories are purchased
from local suppliers, and the
remaining 20% are
imported from Italy, United
States of America,
France, United Kingdom,
Germany, India, Singapore,
Japan and Republic
of China.
MAJOR SUPPLIERS
Y K K Zipper [Thailand]
Co., Ltd. : Thailand
Dupont [Thailand] Co.,
Ltd. : Thailand
Bangkok Weaving Mill
Group : Thailand
SALES
[LOCAL]
80% of the
products is sold
locally by wholesale
to end-users through
the subject’s boutique
shops which currently
are around 210 branches,
mainly at the leading department
stores both in
Bangkok and provincial.
EXPORT
[COUNTRIES]
20% of the
products is also
exported to Hong Kong,
Singapore, Indonesia, Vietnam,
Malaysia, Myanmar, Korea,
New Zealand, Brunei, Australia,
Norway, Philippines and
United States of
America.
RELATED &
AFFILIATED COMPANIES
|
Company Name |
Country |
Business Type |
|
Jaspal & Son
Co., Ltd. |
Thailand |
Manufacturer & sole
agent of Bedding,
Bed Sheet,
Blanket, Bath room
accessories, Towel,
Bathroom rug, under brand name:
“Zucci”, “Cannon”, “Santas”, “Back Saver” |
|
J.S. Development Co.,
Ltd. |
Thailand |
Land Development |
|
Jaspal Holding Co.,
Ltd. |
Thailand |
Holding Company |
|
JS Home Interiors
Ltd. |
Thailand |
Manufacturer of furniture
products |
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 credit term
of 30-60 days.
Local bills are
paid by cash
on the credits
term of 30-60-90
days.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
The Siam Commercial
Bank Public Co.,
Ltd.
[ Bangna Branch :
39 Moo 6, T.
Bangkaew, A. Bangplee, Samutprakarn ]
Bank of Ayudhya
Public Co., Ltd.
[ Head Office :
1222 Rama 3
Road, Bangpongpang, Yannawa,
Bangkok ]
Krung Thai Bank
Public Co., Ltd.
[ Head Office :
35 Sukhumvit Road,
Klongtoeynua, Wattana, Bangkok ]
Bangkok Bank Public
Co., Ltd.
[ Nananua Branch : 11/1
Sukhumvit 3 Road,
Klongtoeynua, Wattana, Bangkok ]
Kasikornbank Public Co.,
Ltd.
[ Rajdamri Branch :
Soi Petchburi 30,
Lumpini, Pathumwan, Bangkok ]
EMPLOYMENT
The subject employs
approximately 1,150 office, sales
staff and factory
workers.
LOCATION DETAILS
The premise is
owned for operating
administrative office, factory
and warehouse on
3,200 square meters
of area at
the heading address. Premises is located
in commercial/ residential area.
The subject currently
has 210 boutique
shops which are
rented at leading
department stores and
shopping complex both
in Bangkok and provincial
as the followings:
Central Department Store,
Robinson Department Store, The
Mall Department Store,
Central World Shopping Center, The Emporium Shopping Center,
Siam Paragon Shopping
Center, Mega Bangna
Shopping Center, Laemthong
Shopping Center, Future
Park Rangsit Shopping
Center, Hua Hin
Markrt Village, The
Paradise Park, Royal
Garden Plaza Pattaya, Seacon
Square, Siam Center, The Terminal 21,
Amarin Plaza, Time
Square and others.
COMMENT
Jaspal has been
at the forefront
of the Thai fashion
industry for many
decades. Its vision is
to delivery high
fashion ready-to-wear clothing
of consumers at an affordable
price especially middle
end market. New Jaspal collections
are launched regularly and
are eagerly anticipated by the
fashion industry. It
also offers complete range
from bags, shoes to belt
and ties.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 2 million,
divided into 2,000
shares of Bht.
1,000 each with
fully paid.
The capital was
increased later as
followings:
Bht. 5
million on July
25, 1989
Bht. 10
million on January
8, 1990
Bht. 15
million on April
5, 1991
Bht. 30
million on April
21, 1993
Bht. 40 million on
June 28, 1993
Bht. 60
million on February
15, 1995
The latest registered
capital was increased
to Bht. 60 million,
divided into 60,000
shares of Bht.
1,000 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE
[as of April
30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Visant Singhsachathet Nationality: Thai Address : 21
Soi Sukhumvit 13,
Klongtoeynua,
Wattana, Bangkok |
8,000 |
13.33 |
|
Mr. Visith Singhsachathet Nationality: Thai Address : 26
Soi Sukhumvit 13,
Klongtoeynua,
Wattana, Bangkok |
8,000 |
13.33 |
|
Mr. Kiatisak Singhsachathet Nationality: Thai Address : 21/4
Soi Sukhumvit 13,
Klongtoeynua,
Wattana, Bangkok |
8,000 |
13.33 |
|
Mr. Charan Singhsachathet Nationality: Thai Address : 21/1
Soi Sukhumvit 13,
Klongtoeynua,
Wattana, Bangkok |
8,000 |
13.33 |
|
Mrs. Charanyee Srinarular Nationality: Thai Address : 21/4
Soi Sukhumvit 13,
Klongtoeynua,
Wattana, Bangkok |
7,000 |
11.67 |
|
Mrs. Kirandip Narular Nationality: Thai Address : 21/4
Soi Sukhumvit 13,
Klongtoeynua, Wattana,
Bangkok |
7,000 |
11.67 |
|
Mrs. Prawinder Narular Nationality: Thai Address : 21
Soi Sukhumvit 13,
Klongtoeynua,
Wattana, Bangkok |
7,000 |
11.67 |
|
Mrs. Rachwan Narular Nationality: Thai Address : 21 Soi
Sukhumvit 13, Klongtoeynua,
Wattana, Bangkok |
7,000 |
11.67 |
Total Shareholders : 8
Share Structure
[as at April
30, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
8 |
60,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
8 |
60,000 |
100.00 |
NAME OF
AUDITOR & CETTIFIED
PUBLIC ACCOUNTANT NO.
Mrs. Siripen Sukcharoenyingyong No.
3636
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 |
10,897,517 |
27,958,716 |
7,265,188 |
|
Trade Accounts & Other
Receivable |
343,305,422 |
234,955,302 |
180,339,400 |
|
Other Receivable |
79,697,001 |
165,953,503 |
83,998,676 |
|
Short-term Loans to
Related Company |
- |
15,000,000 |
- |
|
Inventories |
1,781,153,847 |
1,463,857,640 |
1,080,835,797 |
|
Other Current Assets
|
32,503,653 |
25,976,268 |
12,912,756 |
|
|
|
|
|
|
Total Current Assets
|
2,247,557,440 |
1,933,701,429 |
1,365,351,817 |
|
Investment in Associated Company |
200,000,000 |
200,000,000 |
200,000,000 |
|
Investment in Subsidiary |
189,541,174 |
189,541,174 |
179,323,822 |
|
Fixed Assets |
1,007,639,051 |
918,163,057 |
584,184,951 |
|
Intangible Assets |
3,698,862 |
5,850,667 |
1,686,491 |
|
Leasehold Right and
Prepaid Service |
76,474,955 |
84,588,029 |
92,701,103 |
|
Deposit |
251,389,861 |
212,793,963 |
165,311,695 |
|
Total Assets |
3,976,301,343 |
3,544,638,319 |
2,588,559,879 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institutions |
1,008,972,947 |
953,312,268 |
519,558,965 |
|
Trade Accounts Payable
|
449,826,096 |
436,391,542 |
289,987,739 |
|
Other Payable |
126,965,459 |
170,320,218 |
98,794,818 |
|
Current Portion of
Long-term Loans from Financial Institution |
256,316,000 |
142,125,600 |
137,253,600 |
|
Current Portion of Finance
Lease Contract Liabilities |
8,524,217 |
7,605,036 |
6,119,210 |
|
Accrued Income Tax |
9,166,470 |
62,066,840 |
111,173,939 |
|
Accrued Expenses |
42,690,228 |
46,123,625 |
11,917,271 |
|
Other Current Liabilities |
10,965,590 |
8,108,323 |
4,509,143 |
|
|
|
|
|
|
Total Current Liabilities |
1,913,427,007 |
1,826,053,452 |
1,179,314,685 |
|
Long-term Loan from Financial Institution |
755,801,732 |
491,822,400 |
436,458,000 |
|
Finance Lease Contract
Liabilities |
5,381,444 |
13,246,263 |
17,193,315 |
|
Employee Benefits Obligation
|
57,761,426 |
49,832,698 |
45,057,952 |
|
Total Liabilities |
2,732,371,609 |
2,380,954,813 |
1,678,023,952 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 60,000 shares |
60,000,000 |
60,000,000 |
60,000,000 |
|
|
|
|
|
|
Capital Paid |
60,000,000 |
60,000,000 |
60,000,000 |
|
Retained Earnings: Appropriated for Statutory
Reserve |
6,000,000 |
6,000,000 |
6,000,000 |
|
Unappropriated |
1,177,929,734 |
1,097,683,506 |
844,535,927 |
|
Total Shareholders' Equity |
1,243,929,734 |
1,163,683,506 |
910,535,927 |
|
Total Liabilities &
Shareholders' Equity |
3,976,301,343 |
3,544,638,319 |
2,588,559,879 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
5,874,830,841 |
4,977,355,660 |
3,842,500,121 |
|
Dividend Income |
- |
41,400,000 |
8,280,000 |
|
Gain on Exchange Rate |
- |
8,317,919 |
4,953,087 |
|
Other Income |
15,214,002 |
12,395,494 |
14,996,281 |
|
Total Revenues |
5,890,044,843 |
5,034,469,073 |
3,870,729,489 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
3,188,885,194 |
2,622,784,864 |
2,027,521,885 |
|
Selling Expenses |
840,775,357 |
702,100,208 |
485,473,968 |
|
Administrative Expenses |
1,451,654,865 |
1,070,011,267 |
707,992,903 |
|
Loss on Exchange Rate |
23,623,371 |
- |
- |
|
Total Expenses |
5,504,938,787 |
4,394,896,339 |
3,220,988,756 |
|
|
|
|
|
|
Profit before Financial Cost &
Income Tax |
385,106,056 |
644,572,734 |
649,740,733 |
|
Financial Costs |
[71,536,829] |
[55,390,456] |
[37,986,630] |
|
Profit before Income Tax |
313,569,227 |
589,182,278 |
611,754,103 |
|
Income Tax |
[65,322,999] |
[129,034,699] |
[174,222,938] |
|
|
|
|
|
|
Net Profit / [Loss] |
248,246,228 |
460,147,579 |
437,531,165 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.17 |
1.06 |
1.16 |
|
QUICK RATIO |
TIMES |
0.23 |
0.24 |
0.23 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.83 |
5.42 |
6.58 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.48 |
1.40 |
1.48 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
203.87 |
203.72 |
194.57 |
|
INVENTORY TURNOVER |
TIMES |
1.79 |
1.79 |
1.88 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
21.33 |
17.23 |
17.13 |
|
RECEIVABLES TURNOVER |
TIMES |
17.11 |
21.18 |
21.31 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
51.49 |
60.73 |
52.20 |
|
CASH CONVERSION CYCLE |
DAYS |
173.71 |
160.22 |
159.50 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
54.28 |
52.69 |
52.77 |
|
SELLING & ADMINISTRATION |
% |
39.02 |
35.60 |
31.06 |
|
INTEREST |
% |
1.22 |
1.11 |
0.99 |
|
GROSS PROFIT MARGIN |
% |
45.98 |
48.45 |
47.97 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
6.56 |
12.85 |
16.91 |
|
NET PROFIT MARGIN |
% |
4.23 |
9.24 |
11.39 |
|
RETURN ON EQUITY |
% |
19.96 |
39.54 |
48.05 |
|
RETURN ON ASSET |
% |
6.24 |
12.98 |
16.90 |
|
EARNING PER SHARE |
BAHT |
4,137.44 |
7,669.13 |
7,292.19 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.69 |
0.67 |
0.65 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.20 |
2.05 |
1.84 |
|
TIME INTEREST EARNED |
TIMES |
5.38 |
11.55 |
17.10 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
18.03 |
29.53 |
|
|
OPERATING PROFIT |
% |
(39.79) |
(1.56) |
|
|
NET PROFIT |
% |
(46.05) |
5.17 |
|
|
FIXED ASSETS |
% |
9.75 |
57.17 |
|
|
TOTAL ASSETS |
% |
12.18 |
36.93 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 18.03%. Turnover has increased from THB
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
45.98 |
Deteriorated |
Industrial
Average |
194.78 |
|
Net Profit Margin |
4.23 |
Acceptable |
Industrial
Average |
7.03 |
|
Return on Assets |
6.24 |
Acceptable |
Industrial
Average |
10.28 |
|
Return on Equity |
19.96 |
Impressive |
Industrial
Average |
17.14 |
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 45.98%. 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 4.23%.
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 6.24%.
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 19.96%, 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 Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.17 |
Deteriorated |
Industrial
Average |
3.00 |
|
Quick Ratio |
0.23 |
|
|
|
|
Cash Conversion Cycle |
173.71 |
|
|
|
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 1.17 times in 2013, increase 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 0.23 times in 2013,
decrease from 0.24 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 174 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.69 |
Acceptable |
Industrial
Average |
0.58 |
|
Debt to Equity Ratio |
2.20 |
Risky |
Industrial
Average |
1.52 |
|
Times Interest Earned |
5.38 |
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 5.39 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 0.69 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 |
5.83 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.48 |
Satisfactory |
Industrial
Average |
1.85 |
|
Inventory Conversion Period |
203.87 |
|
|
|
|
Inventory Turnover |
1.79 |
Deteriorated |
Industrial
Average |
6.04 |
|
Receivables Conversion Period |
21.33 |
|
|
|
|
Receivables Turnover |
17.11 |
Impressive |
Industrial
Average |
7.41 |
|
Payables Conversion Period |
51.49 |
|
|
|
The company's Account Receivable Ratio is calculated as 17.11 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 is
204 days at the end of 2012,
same number of days
as in 2013. This represents a negative trend. And
Inventory turnover is 1.79 times in year 2012, the same
as in 2013.
The company's Total Asset Turnover is calculated as 1.48 times and 1.4
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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.55 |
|
|
1 |
Rs.99.86 |
|
Euro |
1 |
Rs.72.67 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
VNT |
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.