MIRA INFORM REPORT
|
Report No. : |
339366 |
|
Report Date : |
07.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
INDORAMA POLYESTER INDUSTRIES PUBLIC COMPANY LIMITED |
|
|
|
|
Formerly Known As : |
TUNTEX [THAILAND] PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
35th Floor, Ocean Tower 2, 75/92 Soi Sukhumvit 19 [Wattana], Asoke Road, Klongtoeynua, Wattana, Bangkok 10110, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
16.04.1987 |
|
|
|
|
Com. Reg. No.: |
0107537002451 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor and Exporter of Polyester Yarns. |
|
|
|
|
No. of Employees : |
950 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but correct |
|
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 |
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
INDORAMA POLYESTER
INDUSTRIES PUBLIC COMPANY LIMITED
[FORMER: TUNTEX [THAILAND] PUBLIC COMPANY LIMITED]
SUMMARY
ADDRESS : 35th FLOOR,
OCEAN TOWER 2,
75/92 SOI SUKHUMVIT 19
[WATTANA], ASOKE ROAD,
KLONGTOEYNUA, WATTANA,
BANGKOK
10110, THAILAND
TELEPHONE : [66] 2661-6661
FAX : [66] 2661-6664
E-MAIL : info@indorama-th.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
EATABLISHED : 1987
REGISTRATION
NO. : 0107537002451 [Former: BOR MOR
JOR. 492]
TAX
ID NO. : 3101440362
CAPITAL REGISTERED : BHT. 2,226,220,000
CAPITAL PAID-UP : BHT. 2,202,850,000
SHAREHOLDER’S PROPORTION : THAI :
0.16%
FOREIGN :
99.84%
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
SASHI PRAKASH KHAITAN,
INDIAN
PRESIDENT &
CHIEF EXECUTIVE OFFICER
NO.
OF STAFF : 950
LINES
OF BUSINESS : POLYESTER YARNS
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 initially established on April 16, 1987 as a private limited company under the registered name C.P.P. [Thailand] Co., Ltd. On July 30, 1987, the subject’s name was changed to Tuntex [Thailand] Co., Ltd., and was listed on the Stock Exchange of Thailand on September 15, 1993. Its status was converted into a public limited company on August 1, 1994 under the name TUNTEX [THAILAND] PUBLIC COMPANY LIMITED.
The subject received Board of Investment Promotion in producing synthetic fibre such as POY [Partially Oriented Yarn], Staple Fibre, Chip, DTY [Draw Textured Yarn] and SDY [Spin Draw Yarn]. It was a joint venture company among Taiwanese, Japanese and Thai investors.
On December 30, 2008, the subject’s name was changed to INDORAMA POLYESTER INDUSTRIES PUBLIC COMPANY LIMITED. On April 30, 2009, the subject was withdrawn from the Stock Exchange of Thailand.
On July 28, 2009, Indo Poly [Thailand] Ltd., was taken over by the subject, with total amount of 1,487 million baht.
Presently, the major shareholders are Indorama Ventures Public Company Limited, and Indorama Holdings Co., Ltd., which are holding around 64.94% and 34.62%, of the subject’s shares respectively. It currently employs approximately 950 staff.
CERTIFICATIONS
ISO 9001, ISO 14001, OHSAS 18001, CSR -DIW Certification, REACH compliance, Oekotex 100, Green label, ISO 50001.
The subject’s registered address was initially at Room 1812, 18th Floor, B.B. Building, 54 Sukhumvit 21 Rd [Soi Asoke], Klongtoeynua, Wattana, Bangkok 10110.
Later, the registered address was relocated to 35th Floor, Ocean Tower 2, 75/92 Soi Sukhumvit 19 [Wattana], Asoke Rd., Klongtoeynua, Wattana, Bangkok 10110, and this is the subject’s current operation address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Suchada Sukpantavorn |
|
Thai |
50 |
|
Mr.
Khanit See |
|
Thai |
65 |
|
Mr.
Aloke Lohia :
Chairman |
[x] |
Indian |
57 |
|
Mrs.
Suchitra Lohia |
[x] |
Indian |
51 |
|
Mr.
Sashi Prakash Khaitan |
[x] |
Indian |
67 |
|
Mr.
Ramesh Kumar Nasingh Pura |
[x] |
Indian |
55 |
|
Mr.
Vivek Kaul |
[x] |
Indian |
59 |
|
Mr. Udey
Paul Singh Gill |
|
Indian |
62 |
AUTHORIZED
PERSON
Any
of the mentioned
directors [x] can
sign on behalf
of the subject
with the company’s
affixed.
MANAGEMENT
Mr.
Aloke Lohia is
the Chief Executive
Officer of Group.
He
is Indian nationality
with the age
of 57 years
old.
Mr. Sashi
Prakash Khaitan is
the President &
Chief Executive Officer.
He
is Indian nationality
with the age
of 67 years
old.
Mr.
Ramesh Kumar Nasingh
Pura is the
Chief Operating Officer.
He
is Indian nationality
with the age
of 55 years
old.
Mr.
Ashok Arora is
the Senior Vice
President.
He
is Indian nationality.
Mr. Anives
Divaree is the
Vice President [Operation].
He
is Indian nationality.
Mr. Gopal
Krishna Tiwary is
the Commercial Manager.
He
is Indian nationality.
Mrs. Sunantha Larnopparat
is the Human
Resources Manager.
She
is Thai nationality.
Mr. Markandey Shukla
is the General Manager.
He
is Indian nationality.
BUSINESS
OPERATIONS
The
subject’s activities are
manufacturer, exporter and
distributor of Polyester
Yarn products, including
Partially Oriented Yarn [POY],
Draw Textured Yarn [DTY],
Polyester Staple Fibre,
Utra-Fine Polyester Fibre,
as well as
PET plastic resin, serving customers
in the main
end use markets
of apparels, home textiles,
automotive, and non-woven
sectors with an
extensive range of
products for all sectors.
PRODUCTIONS
Polyester
yarn : 285,000
tons per annum
Ultra-Fine
Polyester Fibre :
196,000 tons per
annum
PET
plastic resin : 108,000
tons per annum
PURCHASE
Cotton/plastic resin and raw materials such as Mono Ethylene Glycol [MEG] and Pure Terephthalic Acid [PTA] are purchased from both local and overseas suppliers in Japan, Germany, Taiwan, Australia, India and Republic of China.
MAJOR
SUPPLIERS
Indorama
Petrochem Limited : Thailand
TPT Petrochemicals Public
Company Limited. :
Thailand
IRPC
Public Company Limited :
Thailand
SALES
[LOCAL]
20%
of the products
is sold locally
to manufacturers, wholesalers
and end-users.
EXPORT
[COUNTRIES]
80% of
the products is
exported to Australia, Republic of China, Singapore,
Taiwan, Indonesia, Korea,
New Zealand, Vietnam,
Myanmar, Columbia, Malaysia,
Philippines, India, Pakistan,
Japan and the
countries in Europe,
Africa and Middle
East.
MAJOR CUSTOMER
Prohesa S.A.S. : Columbia
LITIGATIONS
Bankruptcy and
Receivership
On December 15, 2003, the Central Bankruptcy Court has ordered Tuntex [Thailand] Public Company Limited [Debtor] to enter into business rehabilitation and appointed Tuntex [Thailand] Public Company Limited to be the Planner according to the lawsuit red case no. 2382/2546. As a result of such Court order, the power and duties in managing the business and assets of the debtor, 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 September 10, 2004, the Court approved the rehabilitation plan and assigned Tuntex [Thailand] Public Company Limited 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 October 27, 2008, the Court has ordered a cancellation of company’s rehabilitation according to Article 90/70 of Bankruptcy Act B.E. 2483. As a result of such Court order, the power and duties in managing the business and assets of the debtor shall be vested in the management of debtor and shareholders.
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.
PARENT
COMPANY
Indorama
Ventures Public Company Limited
RELATED AND ASSOCIATED COMPANIES
TPT Petrochemicals Public
Company Limited
Business Type : Manufacturer
of Purified Terephthalic
Acid [PTA]
Tuntex
Textile [Thailand] Co.,
Ltd.
Business Type : Manufacturing &
distribution of fabrics
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
10500]
The
Siam Commercial Bank
Public Co., Ltd.
[Head Office :
9 Ratchadapisek Rd.,
Ladyao, Jatujak, Bangkok
10900]
Krung
Thai Bank Public
Co., Ltd.
[Head Office : 35 Sukhumvit
Rd., Klongtoeynua, Wattana,
Bangkok 10110]
Kasikornbank
Public Co., Ltd.
EMPLOYMENT
The
subject employs approximately
950 staff. [office, sales
staff and factory workers]
LOCATION
DETAILS
The
premise is rented for operating
administrative office at the heading address. Premise located
in commercial/residential area.
Factory
I is located
at 6, I - 2
Road, Mabtaphut Industrial
Estate, T. Mabtaphut,
A.
Muang, Rayong 21150.
Tel: [66] 38
683-870-8, Fax [66]
38 683-883-8.
Factory
II is located
at 35/8 Moo
4, T. Khunkaew, A.
Nakornchaisri, Nakhonpathom 73120.
Tel : [66]
34 222-191-6.
COMMENT
The
company is a
manufacturer, distributor and
exporter of polyester yarns. Economic conditions have not
had a great impact on its
business and the year ended with a
record-breaking the year, which
the results were remarkable.
The fact is that cotton Inclement
weather that can
lead to crop shortages have
meant that Polyester fiber is
expected to continue to replace
cotton and other natural fibers each year
as there is no hindrance to the
expansion of Polyester production while
there is limited upside for
cotton. As the world faces
economic uncertainty, expect people to favor Polyester, the
lowest cost material.
The
company is a
member of Indorama group, it
is one of the
largest producers of
polyester yarns. Its geographic
and product diversity have maximized business opportunity across frontiers and
it is able to take advantage of its
efficiency to remain in the forefront in each market where it operates.
FINANCIAL
INFORMATION
The
capital was originally
registered at Bht. 100,000
divided into 1,000
shares of Bht.
100 each.
The
capital was increased
later as followings:
Bht.
80 million on
July 30, 1987
Bht.
600 million on
December 28, 1987
Bht.
750
million on November
11, 1988
Bht.
900
million on November
22, 1989
Bht. 1,000
million on August
22, 1990
Bht. 1,500
million on July
21, 1992
Bht. 1,800
million on July
15, 1993
Bht. 2,100
million in 1996
Bht. 2,300
million in 1997
Bht. 2,800
million in 1998
Bht. 2,960
million on August
14, 2003
The latest
registered capital was
decreased to Bht. 2,226,220,000
divided into
2,226,220,000 shares
of Bht. 1
each, with the
current capital paid-up
at Bht. 2,202,850,000.
MAIN
SHAREHOLDERS [as at
April 21, 2015]
at Bht. 2,202,850,000 of
capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Indorama Ventures Public
Company Limited Nationality: Mauritius Address : 37th Floor,
Ocean Tower 2, 75/102 Soi
Sukhumvit 19 [Wattana], Asoke Rd.,
Klongtoeynua, Wattana, Bangkok
|
1,430,636,976 |
64.94 |
|
Indorama Holdings Co.,
Ltd. Nationality: Mauritius Address : 28th Floor,
Ocean Tower 2, 75/64,
65 Soi
Sukhumvit 19 [Wattana], Asoke Rd.,
Klongtoeynua, Wattana, Bangkok
|
762,777,905 |
34.62 |
|
Mycene Holdings [B.V.I.] Ltd. Nationality: BVI Address : Unit 46, 12th Floor, Kowloonbay International Trade &
Exhibition Center, 1 Trademart
Drive, Kowloon
Bay, Hong Kong |
2,017,899 |
0.09 |
|
Others |
7,417,220 |
0.35 |
Total Shareholders : 839
Share Structure [as
at April 21,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
790 |
3,407,337 |
0.16 |
|
Foreign |
49 |
2,199,442,663 |
99.84 |
|
Total |
839 |
2,202,850,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.:
Ms. Orawan Chunhakitpaisan No.
6105
BALANCE
SHEET [BAHT]
The latest financial figures published
as at December
31, 2014, 2013 & 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 [Adjusted] |
|
|
|
|
|
|
Cash and cash
equivalents |
35,036,542 |
6,645,388 |
10,350,825 |
|
Trade account receivable |
2,246,826,650 |
2,859,973,964 |
2,320,249,464 |
|
Inventories |
2,391,316,855 |
2,555,173,677 |
2,476,185,521 |
|
Other current assets
|
540,784,273 |
619,074,542 |
578,929,792 |
|
|
|
|
|
|
Total Current Assets
|
5,213,964,320 |
6,040,867,571 |
5,385,715,602 |
|
|
|
|
|
|
Property, plant and equipment |
7,186,763,087 |
6,919,252,268 |
6,840,035,667 |
|
Deferred income tax
assets |
- |
5,409,149 |
10,194,052 |
|
Other non-current assets |
38,066,114 |
170,169,100 |
59,302,008 |
|
Total Assets |
12,438,793,521 |
13,135,698,088 |
12,295,247,329 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 [Adjusted] |
|
|
|
|
|
|
Bank overdraft |
30,477 |
25,430,025 |
- |
|
Trade account payable
|
2,296,297,743 |
1,512,033,413 |
1,620,159,917 |
|
Short-term loan to parent
company |
3,569,150,150 |
5,013,100,000 |
3,909,800,000 |
|
Current portion of
finance lease contract liabilities |
195,411 |
182,593 |
34,074,398 |
|
Current portion of long-term
payable for
machinery |
- |
- |
8,309,925 |
|
Other Current Liabilities |
342,719,482 |
325,985,490 |
331,564,178 |
|
|
|
|
|
|
Total Current Liabilities |
6,208,393,263 |
6,876,731,521 |
5,903,908,418 |
|
Long-term loan from
parent company |
2,810,000,000 |
2,810,000,000 |
2,810,000,000 |
|
Finance lease contract
liabilities |
- |
195,411 |
378,005 |
|
Capital budget allocations
from demolition and
restore of assets |
159,815,004 |
154,112,829 |
148,614,107 |
|
Employee benefits obligation |
49,195,601 |
65,282,757 |
53,660,251 |
|
Deferred Income Tax
Liabilities |
66,945,739 |
- |
- |
|
Total Liabilities |
9,294,349,607 |
9,906,322,518 |
8,916,560,781 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share capital |
|
|
|
|
Registered |
|
|
|
|
2,226,220,000 ordinary
shares of Baht 1 each |
2,226,220,000 |
2,226,220,000 |
2,226,220,000 |
|
Issued & Fully
Paid 2,202,850,000 ordinary shares
of Baht 1
each |
2,202,850,000 |
2,202,850,000 |
2,202,850,000 |
|
Share premium |
96,495,000 |
96,495,000 |
96,495,000 |
|
Revaluation surplus on
assets |
728,027,286 |
776,229,148 |
848,039,115 |
|
Differences arising from
Transactions under the same control
|
[907,144,640] |
[907,144,640] |
[907,144,640] |
|
Retained Earnings Appropriated for
statutory reserve |
107,194,501 |
107,194,501 |
107,194,501 |
|
Unappropriated [Deficit] |
917,021,767 |
953,751,561 |
1,031,252,572 |
|
Total Shareholders' Equity |
3,144,443,914 |
3,229,375,570 |
3,378,686,548 |
|
Total Liabilities & Shareholders' Equity |
12,438,793,521 |
13,135,698,088 |
12,295,247,329 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 [Adjusted] |
|
|
|
|
|
|
Sales income |
19,808,217,158 |
20,078,669,814 |
19,313,889,523 |
|
Interest income |
88,880,060 |
60,733,592 |
44,337,405 |
|
Gain from exchange
rate |
75,741,810 |
118,783,176 |
73,356,914 |
|
Other income |
93,255,525 |
77,278,473 |
230,479,446 |
|
Total Revenues |
20,066,094,553 |
20,335,465,055 |
19,662,063,288 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of sales
|
19,021,438,659 |
19,442,063,624 |
18,746,780,269 |
|
Selling expenses |
589,914,249 |
551,935,584 |
650,474,817 |
|
Administrative expenses |
96,444,805 |
106,694,858 |
98,212,506 |
|
Loss on impairment of
property |
- |
17,658,455 |
- |
|
Loss on disposal
of land, building & equipment |
- |
- |
1,329,152 |
|
Executives’ remuneration |
1,600,000 |
2,100,000 |
2,490,000 |
|
Financial cost |
359,616,199 |
334,390,347 |
293,858,248 |
|
Total Expenses |
20,069,013,912 |
20,454,842,868 |
19,793,144,992 |
|
|
|
|
|
|
Loss before income
tax |
[2,919,359] |
[119,377,813] |
[131,081,704] |
|
Income [loss] before
other |
[74,286,369] |
[9,814,555] |
158,061 |
|
Loss on insurance |
[9,657,410] |
[2,978,259] |
11,716,507 |
|
Land, building and
equipment |
- |
[22,170,002] |
- |
|
Income tax |
1,931,482 |
5,029,651 |
[2,343,301] |
|
|
|
|
|
|
Net Profit / [Loss] |
[84,931,656] |
[149,310,978] |
[121,550,437] |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.84 |
0.88 |
0.91 |
|
QUICK RATIO |
TIMES |
0.37 |
0.42 |
0.39 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
- |
- |
14,530.99 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.59 |
1.53 |
1.57 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
45.89 |
47.97 |
48.21 |
|
INVENTORY TURNOVER |
TIMES |
7.95 |
7.61 |
7.57 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
41.40 |
51.99 |
43.85 |
|
RECEIVABLES TURNOVER |
TIMES |
8.82 |
7.02 |
8.32 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
44.06 |
28.39 |
31.54 |
|
CASH CONVERSION CYCLE |
DAYS |
43.22 |
71.57 |
60.52 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
96.03 |
96.83 |
97.06 |
|
SELLING & ADMINISTRATION |
% |
3.47 |
3.28 |
3.88 |
|
INTEREST |
% |
1.82 |
1.67 |
1.52 |
|
GROSS PROFIT MARGIN |
% |
5.27 |
4.45 |
4.74 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(0.01) |
(0.59) |
(0.68) |
|
NET PROFIT MARGIN |
% |
(0.43) |
(0.74) |
(0.63) |
|
RETURN ON EQUITY |
% |
(2.70) |
(4.62) |
(3.60) |
|
RETURN ON ASSET |
% |
(0.68) |
(1.14) |
(0.99) |
|
EARNING PER SHARE |
BAHT |
(0.04) |
(0.07) |
(0.06) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.75 |
0.75 |
0.73 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.96 |
3.07 |
2.64 |
|
TIME INTEREST EARNED |
TIMES |
(0.01) |
(0.36) |
(0.45) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(1.35) |
3.96 |
|
|
OPERATING PROFIT |
% |
(97.55) |
(8.93) |
|
|
NET PROFIT |
% |
43.12 |
(22.84) |
|
|
FIXED ASSETS |
% |
- |
(100.00) |
|
|
TOTAL ASSETS |
% |
(5.31) |
6.84 |
|
ANNUAL
GROWTH : RISKY
An annual sales growth is -1.35%. Turnover has
decreased from THB 20,078,669,814.00 in 2013 to THB 19,808,217,158.00 in 2014.
While net profit has increased from THB
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
5.27 |
Impressive |
Industrial
Average |
2.91 |
|
Net Profit Margin |
(0.43) |
Deteriorated |
Industrial
Average |
(8.01) |
|
Return on Assets |
(0.68) |
Deteriorated |
Industrial
Average |
(7.74) |
|
Return on Equity |
(2.70) |
Deteriorated |
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
5.27%. 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 -0.43%, 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 -0.68%, 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 -2.7%, 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 |
0.84 |
Risky |
Industrial
Average |
1.01 |
|
Quick Ratio |
0.37 |
|
|
|
|
Cash Conversion Cycle |
43.22 |
|
|
|
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 0.84 times in 2014, decreased from 0.88
times, then the company may have problems meeting its short-term obligations.
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 0.37 times in 2014, decreased from 0.42 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
44 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.75 |
Acceptable |
Industrial
Average |
0.37 |
|
Debt to Equity Ratio |
2.96 |
Risky |
Industrial
Average |
0.58 |
|
Times Interest Earned |
(0.01) |
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 -0.01 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 0.75
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 |
- |
|
Industrial
Average |
- |
|
Total Assets Turnover |
1.59 |
Impressive |
Industrial
Average |
0.97 |
|
Inventory Conversion Period |
45.89 |
|
|
|
|
Inventory Turnover |
7.95 |
Impressive |
Industrial
Average |
7.73 |
|
Receivables Conversion Period |
41.40 |
|
|
|
|
Receivables Turnover |
8.82 |
Satisfactory |
Industrial
Average |
10.15 |
|
Payables Conversion Period |
44.06 |
|
|
|
The company's Account Receivable Ratio is
calculated as 8.82 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 48 days
at the end of 2013 to 46 days at the end of 2014. This represents a positive
trend. And Inventory turnover has increased from 7.61 times in year 2013 to
7.95 times in year 2014.
The company's Total Asset Turnover is
calculated as 1.59 times and 1.53 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.66.40 |
|
|
1 |
Rs.101.19 |
|
Euro |
1 |
Rs.73.89 |
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
|
|
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.