MIRA INFORM REPORT
|
Report No. : |
345136 |
|
Report Date : |
15.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
ALPHA SPINNING CO., LTD. |
|
|
|
|
Registered Office : |
70 Moo 9, Soi Sinfah, Suksawad Road,
Bangkru, Phrapradaeng, Samutkrakarn
10130 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
04.04.1988 |
|
|
|
|
Com. Reg. No.: |
0115531001061 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor
and
Exporter of Yarn Spinning. |
|
|
|
|
No. of Employees : |
500 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
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 |
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’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
ALPHA
SPINNING CO., LTD.
SUMMARY
BUSINESS ADDRESS : 70
MOO 9, SOI
SINFAH, SUKSAWAD ROAD,
BANGKRU, PHRAPRADAENG,
SAMUTKRAKARN 10130,
THAILAND
TELEPHONE : [66] 2463-3236,
2463-8037
FAX : [66]
2463-1164, 2463-4389
E-MAIL
ADDRESS : info@alphacompanies.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1988
REGISTRATION NO. : 0115531001061 [Former
: SOR. POR.
1140]
TAX
ID NO. : 3271021453
CAPITAL
REGISTERED : BHT. 150,000,000
CAPITAL
PAID-UP : BHT. 150,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
KOMAEN CHATRIRAT, THAI
CHIEF EXECUTIVE
OFFICER AND PRESIDENT
NO. OF
STAFF : 500
LINES OF
BUSINESS : YARN
SPINNING
MANUFACTURER, DISTRIBUTOR AND EXPORTER
CORPORATE
PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject was established
on April 4,
1988 as a
private limited company
under the registered
name ALPHA SPINNING CO., LTD. by
Thai-Indian groups, to provide
yarn spinning for both
local and overseas
markets. It currently
employs approximately 500 staff.
The subject is
ISO 9002 certified
according to Uster
[the Swiss makers
of yarn testing
instruments and publishers
of international yarn
quality norms], its yarn
quality ranks among
the top 5 of
world spinners for
most yarn types
produces.
The subject’s registered
address is 70 Moo
9, Soi Sinfah,
Suksawad Rd., Bangkru,
Phrapradaeng, Samutkrakarn 10130,
while the initial operating address
was at 329/1 Moo 1, Soi Bancha,
Suksawad Rd., Naiklongbangplakod, Phrasamutjaedee, Samutprakarn
10130.
Later, the subject’s
operating address was
moved to same
location as the
registered address at 70
Moo 9,
Soi Sinfah, Suksawad
Rd., Bangkru, Phrapradaeng,
Samutprakarn 10130.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Suthep Kittikulsingh |
[x] |
Thai |
68 |
|
Mrs. Rano Kittikulsingh |
[x] |
Thai |
66 |
|
Mr. Raman Kittikulsingh |
|
Thai |
45 |
|
Mr. Komaen Chatrirat |
[x] |
Thai |
61 |
AUTHORIZED
PERSON
Anyone of the
mentioned directors [x] can
sign on behalf
of the subject
with
company’s affixed.
MANAGEMENT
Mr. Komaen Chatrirat is
the Chief Executive
Officer and President.
He is Thai
nationality with the
age of 61
years old.
Mr. Raman
Kittikulsingh is the
Vice President.
He is Thai
nationality with the
age of 45
years old.
Mr. Ramesh
Iyer is the
Sales & Marketing Manager.
He is Indian
nationality.
Mrs. Pornthip
Hatthakitkosol is the
Chief of Finance.
She is Thai
nationality.
BUSINESS
OPERATIONS
The subject is engaged
in manufacturing service of yarn
spinning, spun yarns
in various fibers
including polyester, viscose,
cotton, linen, polynosic,
modal and its
blends in both
regular and fancy
slub variations.
The subject is
also manufacturer and
distributor of polyester
yarn and cotton yarn
under its own
brand “ALPHCEL”.
PURCHASE
Most of tits
raw materials are purchased
from local suppliers
and agents, the
remaining mainly natural yarn and
cotton yarn are imported from India, Taiwan, Germany, Japan,
Australia and Republic
of China.
SALES
60% of the
products is sold
locally by wholesale
to manufacturers and
end-users, the remaining 40%
is exported to
Germany, Israel, Hong Kong,
Republic of China, Singapore,
Vietnam, India, Australia, New Zealand,
Pakistan, Malaysia, Indonesia,
Sri Lanka, Taiwan, Bangladesh,
Italy, Turkey and
etc.
MAJOR CUSTOMERS
Saha Union Public
Co., Ltd. :
Thailand
Tuntex Textile [Thailand] Co.,
Ltd. : Thailand
Thai Rayon Public
Co., Ltd. :
Thailand
Alphatex Industries Co., Ltd. : Thailand
Beta Weaving Factory
Co., Ltd. :
Thailand
Asia Textile Co.,
Ltd. : Thailand
Luckytex [Thai] Public
Co., Ltd. :
Thailand
RELATED
COMPANIES
Alphatex Industries Co.,
Ltd.
Business Type : Manufacture
of textiles
Alfino International Co.,
Ltd.
Business Type : Distributor
of garment products
Alpha Processing Co.,
Ltd.
Business Type : Textile
dyeing & finishing
service
Alpha Apparel Co.,
Ltd.
Business Type : Manufacturer
of garment products
LITIGATION
Bankruptcy and
Receivership
On May 31, 2000,
The Central Bankruptcy
Court has received
the petition for
company’s rehabilitation from
Alpha Spinning Co., Ltd.,
black case no.
413/2543.
On June 26,
2000, the Central
Bankruptcy Court has ordered
the Company to
enter into business
rehabilitation and appointed
Alpha Planner Co.,
Ltd. to be
the Planner according
to red case
no. 467/2543. As
a result of
such Court order,
the power and
duties in managing
the business and
asset of the
company’s directors, including
all legal rights
of the company’s
shareholders shall be
vested in the Planner according to
Article 90/25 of
Bankruptcy Act B.E.
2483.
On February
23, 2001, the Court
approved the rehabilitation plan
and assigned Alpha
Planner Co., Ltd.
to be the
Plan Administrator. As a
result of such
Court order, the
power and duties
of the Planner
shall be vested
in the Plan Administrator
according to Article
90/59 of Bankruptcy
Act B.E. 2483.
On July
11, 2001, Alpha
Spinning Co., Ltd. has
agreed to operate
under the rehabilitation plan
& debt restructuring
by transferring its
assets such as
land, building & machinery for
some debt repayment
to the creditors.
However, the company
has received a
right to lease
such assets for
its normal business
operation. Moreover, it has a
right to buy
back such assets
within 7 years
in which the
company has to
make prepayment by
installments until the amount
has been fully
settled as mentioned
in the agreement.
CREDIT
Sales & services
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
Citibank N.A.
[Bangkok Branch
: 82 North
Sathorn Rd., Silom,
Bangrak, Bangkok 10330]
Bangkok Bank
Public Co., Ltd.
[Head Office
: 333 Silom
Rd., Silom, Bangrak,
Bangkok 10100]
EMPLOYMENT
The subject employs
approximately 500 office
staff and factory
workers.
LOCATION
DETAILS
The premise is
rented for operating an administrative office
at the heading
address. Premise is
located in an
industrial area.
Factory is located
at 329/1 Moo 1, Soi Bancha,
Suksawad Rd., Naiklongbangplakod, Phrasamutjaedee, Samutprakarn
10130. Tel.: [66]
2425-0396-9 Fax: [66]
2425-0450
COMMENT
The subject, as the leading spinning’s facilities, is designed to handle
a complete spectrum of fibers from the coarsest of linens to the finest of
synthetics. The products
are for industrial
users, such as
garment, decoration and
household items industries, as
well as retail
market for general
consumer.
Subject reported slow
sales in the year
2014 from constraints
on export expansion due to the slower-than -expected recovery of the
global economy.
FINANCIAL
INFORMATION
The capital was
registered at Bht.
2,000,000 divided into
20,000 shares of
Bht. 100 each.
The capital was
increased later as
follows:
Bht.
100,000,000 on March
22, 1989
Bht.
150,000,000 on October
24, 1995
The latest registered
capital was increased
to Bht. 150,000,000
divided into 1,500,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE :
[as at April
30, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Komaen Chatrirat Nationality: Thai Address : 91/31
Moo 5, Thakham, Bangkhunthien, Bangkok |
415,472 |
27.70 |
|
Mr. Raman
Kittikulsingh Nationality: Thai Address : 24
Sukhumvit 15 Rd., Klongtoeynua,
Wattana, Bangkok |
279,000 |
18.60 |
|
Mrs. Rano
Kittikulsingh Nationality: Thai Address : 24
Sukhumvit 15 Rd., Klongtoeynua,
Wattana, Bangkok |
208,000 |
13.86 |
|
Ms. Suresh
Kulati Nationality: Thai Address : 24
Sukhumvit 15 Rd., Klongtoeynua,
Wattana, Bangkok |
208,000 |
13.86 |
|
Mr. Suthep
Kittikulsingh Nationality: Thai Address : 70
Moo 9, Bangkru, Phrapradaeng, Samutprakarn |
109,528 |
7.30 |
|
Mrs. Paveena
Chatrirat Nationality: Thai Address : 91/31
Moo 5, Thakham, Bangkhunthien, Bangkok |
70,000 |
4.67 |
|
Ms. Sanam
Kittikulsingh Nationality: Thai Address : 24
Sukhumvit 15 Rd., Klongtoeynua,
Wattana, Bangkok |
70,000 |
4.67 |
|
Mr. Matabsingh
Gambir Nationality: Thai Address : 427
Chakrapetch Rd., Wangburapa,
Phranakorn, Bangkok |
70,000 |
4.67 |
|
Mr. Ashokkumar
Jwala Nationality: Thai Address : 40/1 Soi
Charoenchai, Klongtoey,
Phrakanong, Bangkok |
70,000 |
4.67 |
Total Shareholders
: 9
Share Structure [as
at April 30,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
9 |
1,500,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
9 |
1,500,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mrs. Phayao Nawarat
No. 989
BALANCE
SHEET [BAHT]
The
latest financial figures
published for December
31, 2014, 2013
& 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
6,002,468.50 |
6,483,363.92 |
3,515,491.89 |
|
Trade Accounts & Other
Receivable |
158,590,029.88 |
163,662,755.76 |
139,377,701.73 |
|
Short-term Lending |
91,434,000.00 |
106,890,000.00 |
111,606,000.00 |
|
Inventories |
95,043,606.67 |
104,147,022.10 |
116,108,764.70 |
|
Other Current Assets
|
13,275,560.66 |
13,878,335.65 |
14,832,864.70 |
|
|
|
|
|
|
Total Current Assets
|
364,345,665.71 |
395,061,477.43 |
385,440,823.02 |
|
Long-term Investment |
1,200,000.00 |
1,200,000.00 |
1,200,000.00 |
|
Fixed Assets |
5,552,727.87 |
8,686,358.53 |
14,320,769.99 |
|
Cash at Bank pledged as
a Collateral |
7,000,000.00 |
7,000,000.00 |
7,000,000.00 |
|
Purchase Assets Deposit |
57,500,000.00 |
57,500,000.00 |
57,502,000.00 |
|
Other Non-current Assets |
10,892,303.31 |
13,098,580.68 |
12,308,471.81 |
|
Total Assets |
446,490,696.89 |
482,546,416.64 |
477,772,064.82 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Trade Accounts Payable |
170,767,890.31 |
180,439,123.32 |
180,384,268.55 |
|
Short-term Loans |
6,698,346.00 |
22,450,000.00 |
11,100,000.00 |
|
Accrued Income Tax |
- |
162,062.58 |
- |
|
Other Current Liabilities |
4,817,451.09 |
4,895,314.84 |
5,622,377.18 |
|
|
|
|
|
|
Total Current Liabilities |
182,283,687.40 |
207,946,500.74 |
197,106,645.73 |
|
Debt Restructuring Payable |
275,033,799.52 |
286,561,047.88 |
292,163,623.08 |
|
Total Liabilities |
457,317,486.92 |
494,507,548.62 |
489,270,268.81 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,500,000 shares |
150,000,000.00 |
150,000,000.00 |
150,000,000.00 |
|
|
|
|
|
|
Capital Paid |
150,000,000.00 |
150,000,000.00 |
150,000,000.00 |
|
Retained Earning -
Unappropriated |
[160,826,790.03] |
[161,961,131.98] |
[161,498,203.99] |
|
Total Shareholders' Equity |
[10,826,790.03] |
[11,961,131.98] |
[11,498,203.99] |
|
Total Liabilities &
Shareholders' Equity |
446,490,696.89 |
482,546,416.64 |
477,772,064.82 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales & Service
Income |
601,477,799.32 |
614,975,819.44 |
658,594,327.38 |
|
Profit from Debt
Restructuring |
- |
- |
22,581,851.63 |
|
Other Income |
12,436,484.32 |
15,294,411.79 |
12,195,507.39 |
|
Total Revenues |
613,914,283.64 |
630,270,231.23 |
693,371,686.40 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
505,991,197.49 |
526,933,372.37 |
569,011,056.94 |
|
Selling Expenses |
27,487,220.42 |
21,640,435.65 |
20,227,737.49 |
|
Administrative Expenses |
78,277,577.73 |
79,997,001.12 |
85,441,999.49 |
|
Total Expenses |
611,755,995.64 |
628,570,809.14 |
674,680,793.92 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost |
2,158,288.00 |
1,699,422.09 |
18,690,892.48 |
|
Financial Cost |
[949,240.31] |
[737,570.53] |
[552,590.97] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax |
1,209,047.69 |
961,851.56 |
18,138,301.51 |
|
Income Tax |
[298,982.11] |
[644,244.94] |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
910,065.58 |
317,606.62 |
18,138,301.51 |
|
Retained Earning, beginning
of year |
[161,961,131.98] |
[161,498,203.99] |
[179,553,613.86] |
|
Less: Adjustment |
224,276.37 |
[780,534.61] |
[82,891.64] |
|
Retained Earning, end
of year |
[160,826,790.03] |
[161,961,131.98] |
[161,498,203.99] |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.00 |
1.90 |
1.96 |
|
QUICK RATIO |
TIMES |
1.40 |
1.33 |
1.29 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
108.32 |
70.80 |
45.99 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.35 |
1.27 |
1.38 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
68.56 |
72.14 |
74.48 |
|
INVENTORY TURNOVER |
TIMES |
5.32 |
5.06 |
4.90 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
96.24 |
97.14 |
77.24 |
|
RECEIVABLES TURNOVER |
TIMES |
3.79 |
3.76 |
4.73 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
123.18 |
124.99 |
115.71 |
|
CASH CONVERSION CYCLE |
DAYS |
41.61 |
44.29 |
36.01 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
84.12 |
85.68 |
86.40 |
|
SELLING & ADMINISTRATION |
% |
17.58 |
16.53 |
16.04 |
|
INTEREST |
% |
0.16 |
0.12 |
0.08 |
|
GROSS PROFIT MARGIN |
% |
17.94 |
16.80 |
18.88 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.36 |
0.28 |
2.84 |
|
NET PROFIT MARGIN |
% |
0.15 |
0.05 |
2.75 |
|
RETURN ON EQUITY |
% |
- |
- |
- |
|
RETURN ON ASSET |
% |
0.20 |
0.07 |
3.80 |
|
EARNING PER SHARE |
BAHT |
0.61 |
0.21 |
12.09 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
1.02 |
1.02 |
1.02 |
|
DEBT TO EQUITY RATIO |
TIMES |
(42.24) |
(41.34) |
(42.55) |
|
TIME INTEREST EARNED |
TIMES |
(2.27) |
(2.30) |
(33.82) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(2.19) |
(6.62) |
|
|
OPERATING PROFIT |
% |
27.00 |
(90.91) |
|
|
NET PROFIT |
% |
186.54 |
(98.25) |
|
|
FIXED ASSETS |
% |
(36.08) |
(39.34) |
|
|
TOTAL ASSETS |
% |
(7.47) |
1.00 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -2.19%. Turnover has decreased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
17.94 |
Impressive |
Industrial
Average |
3.43 |
|
Net Profit Margin |
0.15 |
Impressive |
Industrial
Average |
(2.97) |
|
Return on Assets |
0.20 |
Impressive |
Industrial
Average |
(3.68) |
|
Return on Equity |
- |
|
Industrial
Average |
(8.23) |
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 17.94%. 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 0.15%, 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
0.2%, 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 |
2.00 |
Impressive |
Industrial
Average |
1.16 |
|
Quick Ratio |
1.40 |
|
|
|
|
Cash Conversion Cycle |
41.61 |
|
|
|
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 2 times in 2014, increased from 1.9 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 1.4 times in 2014,
increased from 1.33 times, although excluding inventory so the company still
have good short-term financial strength.
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 42 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
1.02 |
Risky |
Industrial
Average |
0.48 |
|
Debt to Equity Ratio |
(42.24) |
Risky |
Industrial
Average |
0.93 |
|
Times Interest Earned |
(2.27) |
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 -2.28 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 1.02 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 Downtrend
Times Interest Earned Stable
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
108.32 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.35 |
Impressive |
Industrial
Average |
1.24 |
|
Inventory Conversion Period |
68.56 |
|
|
|
|
Inventory Turnover |
5.32 |
Impressive |
Industrial
Average |
3.57 |
|
Receivables Conversion Period |
96.24 |
|
|
|
|
Receivables Turnover |
3.79 |
Acceptable |
Industrial Average |
5.58 |
|
Payables Conversion Period |
123.18 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.79 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 72 days at the
end of 2013 to 69 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 5.06 times in year 2013 to 5.32 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.35 times and 1.27
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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.11 |
|
|
1 |
Rs.99.50 |
|
Euro |
1 |
Rs.74.24 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.