MIRA INFORM REPORT
|
Report No. : |
345135 |
|
Report Date : |
17.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
SUNFLAG [THAILAND] LTD. |
|
|
|
|
Registered Office : |
Room 1213, 12th Floor,
Bb Building, 54
Sukhumvit 21 Road [Asoke], Klongtoey Nua,
Wattana, Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
03.11.1989 |
|
|
|
|
Com. Reg. No.: |
0105532105528 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject’s activities
are manufacturer, exporter
and distributor of
polyester chips, including
Partially Oriented Yarn [POY]
and Draw Texturised
Yarn [DTY], as
well as Filament
Yarns. |
|
|
|
|
No. of Employees : |
380 |
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 : |
Good |
|
Payment Behaviour : |
Regular |
|
Litigation : |
Exist |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
THAILAND - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise
economy, and generally pro-investment policies Thailand has historically had a strong
economy due in part to competitive industrial and agriculture exports - mostly
electronics, agricultural commodities, automobiles and parts, and processed
foods. The economy experienced slow growth and declining exports in 2014, in
part due to domestic political turmoil and sluggish global demand. With full
employment, Thailand attracts an estimated 2-4 million migrant workers from
neighboring countries, and faces labor shortages. Following the May 2014 coup
d’tat, tourism decreased 6-7% but is beginning to recover. The household debt
to GDP ratio is over 80%. The Thai government in 2013 implemented a nation-wide
300 baht ($10) per day minimum wage policy and deployed new tax reforms
designed to lower rates on middle-income earners. The Thai baht has remained
stable.
|
Source
: CIA |
Company
Name
SUNFLAG [THAILAND] LTD.
SUMMARY
ADDRESS : ROOM
1213, 12th FLOOR,
BB BUILDING,
54 SUKHUMVIT 21
ROAD [ASOKE],
KLONGTOEY NUA,
WATTANA,
BANGKOK 10110,
THAILAND
TELEPHONE : [66] 2261-2411-6
FAX : [66] 2261-1441-2
E-MAIL ADDRESS : lalitkumar@sunflag.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1989
REGISTRATION NO. : 0105532105528 [Former
: 10551/2532]
TAX ID NO. : 3101766608
CAPITAL REGISTERED : BHT.
426,250,000
CAPITAL PAID-UP : BHT.
426,250,000
SHAREHOLDER’S PROPORTION : THAI
: 5.52%
FOREIGN :
94.48%
FISCAL YEAR CLOSING
DATE : MARCH
31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR.
LALIT KUMAR, INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 380
LINES OF BUSINESS : POLYESTER CHIPS
AND FILAMENT YARNS
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
|
|
|
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 November 3,
1989 as a
private limited company under
the registered name SUNFLAG
[THAILAND] LTD. by
Thai and foreign
groups. It is engaged
in manufacturing polyester
chips and yarns
products for both
local and overseas markets.
Subject currently employs
approximately 380 staff.
The subject is
an affiliated company of
Texma Consultant Co., Ltd.,
in
United Arab Emirates.
The subject’s operation
was granted promotional
privileges by the Board of
Investment.
The subject’s registered
address is Room
1213, 12th Flr.,
BB Building, 54
Sukhumvit 21 Road
[Asoke], Klongtoey Nua,
Wattana, Bangkok 10110,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Piya Bhushan
Bhardwaj : Chairman |
[x] |
Kenyan |
78 |
|
Mr. Lalit Kumar |
[x] |
Indian |
66 |
|
Mr. Alok Bhardwaj |
|
British |
46 |
|
Mr. Trilok Raj
Sud |
|
Indian |
68 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Lalit Kumar
is the Managing
Director.
He is Indian
nationality with the age of
66 years old.
Mr. Trilok Raj
Sud is the
Deputy Managing Director
and General Manager.
He is Indian
nationality with the
age of 68
years old.
BUSINESS OPERATIONS
The subject’s activities
are manufacturer, exporter
and distributor of
polyester chips, including
Partially Oriented Yarn [POY]
and Draw Texturised
Yarn [DTY], as
well as Filament
Yarns
PRODUCTION CAPACITY
Polyester Chip :
30,000 tons/year
Partially Oriented Yarn : 2,500
tons/year
Draw Texturised Yarn : 4,500
tons/year
Polyester Filament Yarn : 3,000
tons/year
IMPORT [COUNTRIES]
30% of its
raw materials, cotton
yarn and chemicals
are imported from
India,
Hong Kong, Republic of
China, Germany, Switzerland,
Japan and Taiwan.
MAJOR SUPPLIERS
BASF [Thai] Ltd
: Thailand
SALES [LOCAL]
20% of its
products is sold
locally to wholesalers
and manufacturers.
EXPORT [COUNTRIES]
80% of the
products is exported
to United Kingdom, Spain,
Italy, Switzerland, Australia, Republic of China, Singapore,
Nigeria, Kenya, Bangladesh, Egypt,
India, Taiwan, Korea, Canada,
Vietnam, Japan, Sri
Lanka, Malaysia, Indonesia,
Myanmar and Pakistan.
MAJOR CUSTOMER
Fils Promptex Yarns
Inc. : Canada
SUBSIDIARY AND
AFIFLIATED COMPANY
The subject is not
found to have
any subsidiary or
affiliated company here
in Thailand.
LITIGATION
Bankruptcy and Receivership
On May 16,
2007, the Central
Bankruptcy Court has
ordered the Company
to enter into
business rehabilitation and
appointed the Company
to be the
Planner according to
the lawsuit red
case no. For. 12/2550. 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
[except for the
right to receive
the dividend] shall
be vested in the
Planner according to Article
90/25 of Bankruptcy
Act B.E. 2483.
On February 23, 2008, the
Central Bankruptcy Court
has ordered to
assign SCMB Co.,
Ltd., as a
new Planner. As
a result of
such Court order,
the power and
duties of the
previous Planner shall
be vested in the
new Planner according
to Article 90/53 of
Bankruptcy Act B.E.
2483.
On November 5,
2008, the Central
Bankruptcy Court has
approved the Company’s
rehabilitation plan by
SCMB Co., Ltd. as
the Plan Administrator. As
a result of
such Court order, the
power and duties
of the management
shall be vested
in the Plan Administrator
according to Article
90/59 of Bankruptcy Act
B.E. 2483.
Others
The subject has
several litigations in
relation to its
normal course of
business operation, but
the management believes
that it would not have significant
affect on the
company’s business.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom Rd.,
Silom, Bangrak, Bangkok]
The Siam Commercial Bank
Public Co., Ltd.
[Chidlom Office
: 1060 New
Petchaburi Rd., Makasan,
Rajthewee, Bangkok]
[Head Office
: 9 Ratchadapisek
Rd., Ladyao, Jatujak,
Bangkok]
Kasikornbank Public Co.,
Ltd.
[Head Office
: 1 Kasikorn
Lane, Rajburana Rd.,
Rajburana, Bangkok]
TMB Bank Public
Co., Ltd.
EMPLOYMENT
The subject employs
approximately 380 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is
rented for operating
office at the
heading address. Premise
is located in
a commercial area.
The factory is
located at 1/30 Moo 5,
Room 44-49, Rojana
Industrial Park, Rojana
Road, T. Kanham, A. U-Thai,
Ayutthaya 13210.
[Land area :
59,200 sq. m., Building
area : 24,000
sq. m.]
Tel: [66] 35
226-812, 35 330-104,
093 923-2586 Fax:
[66] 35 226-812.
COMMENT
In 2014, the
domestic situation was
a challenging factor
to the development
of the company. Thailand
was fraught with
grim economic conditions
from the politic
unrest during the
first half, a
deceleration of overall
economic growth from
a drop in
industrial products in
accordance with shrink
consumer spending, lower- than-
expected export growth in
main markets like
China and EU.
Business environment in the country
was negative impacted
and this led
to a slowdown
of the company’s business.
FINANCES INFORMATION
The capital was
initially registered at
Bht. 5 million, divided
into 50,000 shares
of Bht. 100 each.
The capital was
increased and decreased
later as follows:
Bht. 500
million on April
27, 1990
Bht. 750 million
on June 28,
1995
Bht. 850
million on March
26, 1997
Bht. 925
million on August
20, 1997
Bht. 965
million on March
24, 2000
Bht. 1,025
million on August
24, 2001
Bht. 51.25 million on
November 29, 2010
[decreased]
Bht. 426.25 million on
December 7, 2010
The latest registered
capital was increased
to Bht. 426,250,000 divided into
4,262,500 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED
WERE : [as at
January 5, 2015]
at Bht. 426,250,000
of capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Texma Consultant Co.,
Ltd. Nationality: Dubai Address : United
Arab Emirates |
2,500,000 |
58.65 |
|
Mr. Piya Bhushan
Bhardwaj Nationality: Kenyan Address : New
Delhi, India |
1,280,000 |
30.03 |
|
Broadford Investments Ltd. Nationality: Swiss Address : Geneva,
Switzerland |
244,625 |
5.74 |
|
Mr. Songkram Chewaprawatdamrong Nationality: Thai Address : 55
Moo 6, Samaedam, Bangkhunthien, Bangkok |
47,500 |
1.11 |
|
Mr. Somwang Boontongrungtavee Nationality: Thai Address : 10/72 Moo 7, Thakam, Bangkhunthien, Bangkok |
40,000 |
0.94 |
|
Mr. Supat Sivasiamphai Nationality: Thai Address : 157-159
Vanich 1 Rd., Chakrawad,
Samphantawong, Bangkok |
28,682 |
0.67 |
|
Mr. Kasem Sivasiamphai Nationality: Thai Address : 109 Sukhumvit 12 Rd.,
Klongtoey, Bangkok |
28,681 |
0.67 |
|
Mr. Charoen Sivasiamphai Nationality: Thai Address : 781/1
Mahajak Rd., Chakrawad,
Samphantawong, Bangkok |
28,681 |
0.67 |
|
Mr. Pracha Sivasriampai Nationality: Thai Address : 109
Sukhumvit 12 Rd.,
Klongtoey, Bangkok |
28,681 |
0.67 |
|
TMB Bank Public
Co., Ltd. Nationality: Thai Address : 300
Phaholyothin Rd., Ladyao,
Jatujak, Bangkok |
21,250 |
0.50 |
|
Krisana Holding Co.,
Ltd. Nationality: Thai Address : 185-189
Rajawong Rd., Chakrawad,
Samphantawong, Bangkok |
11,900 |
0.28 |
|
Mr. Lalit Kumar
Nationality: Indian Address : 97/32
Soi Sukhumvit 24,
Sukhumvit Rd., Klongton, Klongtoey,
Bangkok |
2,500 |
0.07 |
Total shareholders : 12
Share Structure [as
at January 5,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
8 |
235,375 |
5.52 |
|
Foreign |
4 |
4,027,125 |
94.48 |
|
Total |
12 |
4,262,500 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.:
Ms. Nongnuch Ouitrakul No.
2241
BALANCE SHEET
[BAHT]
The latest financial
figures published for March
31, 2014, 2013
& 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash
Equivalent |
367,348,042 |
147,077,483 |
564,964,989 |
|
Trade Accounts & Other Receivable |
225,788,675 |
640,047,850 |
858,321,990 |
|
Inventories |
254,469,223 |
125,618,123 |
40,873,660 |
|
Other Current Assets |
2,940,795 |
8,906,718 |
3,827,479 |
|
|
|
|
|
|
Total Current Assets
|
850,546,735 |
921,650,174 |
1,467,988,118 |
|
Cash at Bank under Commitment |
8,155,794 |
8,000,000 |
- |
|
Fixed Assets |
1,760,020,256 |
1,409,876,896 |
471,804,138 |
|
Intangible Assets |
293,300 |
127,211 |
- |
|
Other Non-current Assets |
451,325 |
364,481 |
246,188 |
|
Total Assets |
2,619,467,410 |
2,340,018,762 |
1,940,038,444 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft & Short-term
Loan from Financial Institution |
- |
- |
5,968,080 |
|
Trade Accounts and
Other Payable |
87,722,727 |
65,950,129 |
20,828,985 |
|
Current Portion of Long-term Loans from Financial Institutions |
4,070,000 |
- |
- |
|
Other Current Liabilities |
563,456 |
3,163,345 |
76,071 |
|
|
|
|
|
|
Total Current Liabilities |
92,356,183 |
69,113,474 |
26,873,136 |
|
|
|
|
|
|
Long-term Loan from Financial Institutions |
261,112,241 |
256,743,051 |
231,000,000 |
|
Employee Benefits Obligation |
14,371,500 |
12,589,176 |
18,240,662 |
|
Total Liabilities |
367,839,924 |
338,445,701 |
276,113,798 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized and issued
share capital
4,262,500 shares |
426,250,000 |
426,250,000 |
426,250,000 |
|
|
|
|
|
|
Capital Paid |
426,250,000 |
426,250,000 |
426,250,000 |
|
Premium on Share Capital |
11,000,000 |
11,000,000 |
11,000,000 |
|
Retained Earning -
Unappropriated |
1,814,377,486 |
1,564,323,061 |
1,226,674,646 |
|
Total Shareholders' Equity |
2,251,627,486 |
2,001,573,061 |
1,663,924,646 |
|
Total Liabilities &
Shareholders' Equity |
2,619,467,410 |
2,340,018,762 |
1,940,038,444 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
1,408,374,982 |
453,702,072 |
1,871,901,416 |
|
Insurance Claims |
403,087,500 |
456,469,006 |
1,111,596,392 |
|
Reversal of Revaluation Decrease |
- |
- |
93,263,719 |
|
Other Income |
20,282,957 |
58,429,607 |
24,870,585 |
|
Total Revenues |
1,831,745,439 |
968,600,685 |
3,101,632,112 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,467,380,265 |
558,206,161 |
1,697,223,891 |
|
Selling Expenses |
52,589,426 |
13,329,235 |
88,976,383 |
|
Administrative Expenses |
41,869,622 |
41,356,829 |
110,466,907 |
|
Loss on Exchange
Rate |
- |
- |
1,099,420,923 |
|
Total Expenses |
1,561,839,313 |
612,892,225 |
2,996,088,104 |
|
|
|
|
|
|
Loss before Financial Cost |
269,906,126 |
355,708,460 |
105,544,008 |
|
Financial Cost |
[19,851,701] |
[18,060,045] |
[21,925,443] |
|
|
|
|
|
|
Net Profit / [Loss] |
250,054,425 |
337,648,415 |
83,618,565 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
9.21 |
13.34 |
54.63 |
|
QUICK RATIO |
TIMES |
6.42 |
11.39 |
52.96 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.80 |
0.32 |
3.97 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.54 |
0.19 |
0.96 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
63.30 |
82.14 |
8.79 |
|
INVENTORY TURNOVER |
TIMES |
5.77 |
4.44 |
41.52 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
58.52 |
514.91 |
167.36 |
|
RECEIVABLES TURNOVER |
TIMES |
6.24 |
0.71 |
2.18 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
CASH CONVERSION CYCLE |
DAYS |
121.81 |
597.05 |
176.15 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
104.19 |
123.03 |
90.67 |
|
SELLING & ADMINISTRATION |
% |
6.71 |
12.05 |
10.65 |
|
INTEREST |
% |
1.41 |
3.98 |
1.17 |
|
GROSS PROFIT MARGIN |
% |
25.87 |
90.45 |
75.03 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
19.16 |
78.40 |
5.64 |
|
NET PROFIT MARGIN |
% |
17.75 |
74.42 |
4.47 |
|
RETURN ON EQUITY |
% |
11.11 |
16.87 |
5.03 |
|
RETURN ON ASSET |
% |
9.55 |
14.43 |
4.31 |
|
EARNING PER SHARE |
BAHT |
58.66 |
79.21 |
19.62 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.14 |
0.14 |
0.14 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.16 |
0.17 |
0.17 |
|
TIME INTEREST EARNED |
TIMES |
13.60 |
19.70 |
4.81 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
210.42 |
(75.76) |
|
|
OPERATING PROFIT |
% |
(24.12) |
237.02 |
|
|
NET PROFIT |
% |
(25.94) |
303.80 |
|
|
FIXED ASSETS |
% |
24.84 |
198.83 |
|
|
TOTAL ASSETS |
% |
11.94 |
20.62 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 210.42%. Turnover has increased from THB
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
25.87 |
Impressive |
Industrial Average |
2.91 |
|
Net Profit Margin |
17.75 |
Impressive |
Industrial Average |
(8.01) |
|
Return on Assets |
9.55 |
Impressive |
Industrial Average |
(7.74) |
|
Return on Equity |
11.11 |
Impressive |
Industrial Average |
(12.43) |
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 25.87%. 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 17.75%, 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 9.55%, 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 11.11%, 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 |
9.21 |
Impressive |
Industrial Average |
1.01 |
|
Quick Ratio |
6.42 |
|
|
|
|
Cash Conversion Cycle |
121.81 |
|
|
|
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 9.21 times in 2014, decreased from 13.34 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 6.42 times in 2014,
decreased from 11.39 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 122 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.14 |
Impressive |
Industrial Average |
0.37 |
|
Debt to Equity Ratio |
0.16 |
Impressive |
Industrial Average |
0.58 |
|
Times Interest Earned |
13.60 |
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 13.6 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 0.14 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 Downtrend
Times Interest Earned Stable
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
0.80 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.54 |
Acceptable |
Industrial Average |
0.97 |
|
Inventory Conversion Period |
63.30 |
|
|
|
|
Inventory Turnover |
5.77 |
Acceptable |
Industrial Average |
7.73 |
|
Receivables Conversion Period |
58.52 |
|
|
|
|
Receivables Turnover |
6.24 |
Acceptable |
Industrial Average |
10.15 |
|
Payables Conversion Period |
- |
|
|
|
The company's Account Receivable Ratio is calculated as 6.24 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 63
days at the end of 2014. This represents a positive trend. And Inventory
turnover has increased from 4.44 times in year 2013 to 5.77 times in year 2014.
The company's Total Asset Turnover is calculated as 0.54 times and 0.19
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 Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.97 |
|
|
1 |
Rs.100.55 |
|
Euro |
1 |
Rs.73.99 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
|
-- |
NB |
New Business |
-- |
|
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.