|
|
|
MIRA
INFORM REPORT
|
Report No. : |
497350 |
|
Report Date : |
10.03.2018 |
IDENTIFICATION DETAILS
|
Name : |
FENATEX CO., LTD. |
|
|
|
|
Formerly Known As : |
FENATEX INTERNATIONAL 2006 CO., LTD. |
|
|
|
|
Registered Office : |
9th Floor, Fico Place Building, 18/8 Sukhumvit 21 Road [Asoke], Klongtoeynua, Wattana, Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2016 |
|
|
|
|
Date of Incorporation : |
18.12.2006 |
|
|
|
|
Com. Reg. No.: |
0105549145447 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in textile
business, to manufacture, distribute
and export wide
range of synthetic fabrics
and yarns |
|
|
|
|
No. of Employees : |
300 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January
2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
Thailand |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
THAILAND - ECONOMIC OVERVIEW
With a relatively well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, Thailand is highly dependent on international trade, with exports accounting for about two-thirds of GDP. Thailand’s exports include electronics, agricultural commodities, automobiles and parts, and processed foods. The industry and service sectors produce about 90% of GDP. The agricultural sector, comprised mostly of small-scale farms, contributes only 10% of GDP but employs about one-third of the labor force. Thailand has attracted an estimated 3.0-4.5 million migrant workers, mostly from neighboring countries.
Over the last few decades, Thailand has reduced poverty substantially. In 2013, the Thai Government implemented a nationwide 300 baht (roughly $10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners.
Thailand’s economy is recovering from slow growth during the years since the 2014 coup. Thailand’s economic fundamentals are sound, with low inflation, low unemployment, and reasonable public and external debt levels. Tourism and government spending - mostly on infrastructure and short-term stimulus measures – have helped to boost the economy, and The Bank of Thailand has been supportive, with several interest rate reductions.
Over the longer-term, household debt levels, political uncertainty, and an aging population pose risks to growth.
|
Source
: CIA |
Company name and summary
FENATEX
CO., LTD.
SUMMARY
BUSINESS ADDRESS : 9th FLOOR,
FICO PLACE BUILDING,
18/8 SUKHUMVIT
21 ROAD [ASOKE],
KLONGTOEYNUA, WATTANA,
BANGKOK 10110,
THAILAND
TELEPHONE : [66] 2654-6999
FAX :
[66] 2654-6902-3
E-MAIL ADDRESS : inquiry@fenatex.net
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2006
REGISTRATION NO. : 0105549145447
TAX ID NO. : 3032467759
CAPITAL REGISTERED : BHT.
100,000,000
CAPITAL PAID-UP : BHT.
100,000,000
SHAREHOLDER’S
PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE
: DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. AKARADEJ SRICHAWLA,
THAI
PRESIDENT
NO. OF STAFF : 300
LINES OF BUSINESS : YARNS
AND FABRIC
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 December 18,
2006 as a
private limited company under
the originally registered
name “Fenatex International
2006 Co., Ltd.” by
Thai groups. On May 28,
2007, the subject’s name was
changed to FENATEX CO., LTD.
Its business objective
is to manufacture
fabric and yarn
to both domestic
and international markets,
as well as
to import and
distribute textile machinery
and spare parts.
It currently employs
approximately 300 staff.
The
subject is a
member of Fico group of
companies, which are
engaged in textile
business.
The
subject’s registered address
is 9th Floor, Fico
Place Building, 18/8 Sukhumvit 21 Road
[Asoke], Klongtoeynua, Wattana, Bangkok 10110, and this is the subject’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Krit
Srichawla |
|
Thai |
42 |
|
Mr. Theprit
Srichawla |
|
Thai |
62 |
|
Mr. Akaradej Srichawla |
|
Thai |
65 |
|
Mr. Amorn
Srichawla |
|
Thai |
48 |
AUTHORIZED PERSON
Anyone of
the above directors
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Akaradej
Srichawla is the
President.
He is
Thai nationality with
the age of 65
years old.
Mr. Amorn
Srichawla is the
Vice President.
He is
Thai nationality with
the age of
48 years old.
Mr. Krit Srichawla is
the Managing Director.
He is
Thai nationality with
the age of
42 years old.
Mr. Rajan
Bandittanakul
is the Products & Marketing Manager.
He is
Thai nationality
Mr. Narendra
Chauhan is the
Factory Manager.
He is
Thai nationality.
Mr. Kriengkrai
Tangsirisatien
is the Warehouse
Manager.
He is Thai nationality.
Ms. Kamala
Klomwattana is the
Account & Financial Manager.
She is
Thai nationality.
BUSINESS OPERATIONS
The subject
is engaged in textile business,
to manufacture, distribute
and export wide
range of synthetic fabrics
and yarns under
“FICOFIL” brand. The products
are as follows:
Chip & Filament
Yarns
Polyester
& Nylon Chips [SD, FD & Bright]
Polyester
& Viscose staple fiber
Polyester Textured
Yarns [50-900 Den]
Polyester Flat
yarns [20-300 Den]
Polyester POY
yarns [85-500 Den]
Polyester high
tenacity yarns
Polyester twisted
yarns [60-1000 Tpm]
Viscose filament
yarns [120-600 Den]
Nylon flat
yarns [20-280 Den]
Nylon 6
monofilament yarns [20-60
Den]
Nylon 66
Mono & multifilament yarns
etc.
Spun Yarns
100% Polyester
yarn [Ne 6-80]
100% Cotton
yarn [Nee 6-80]
100% Viscose
yarn [Ne 10-80]
Polyester/Cotton blends
[Ne 10-50]
Polyester/Viscose blend
[Ne 10-50]
Polyester sewing
thread [Ne 10-50]
100% Acrylic
yarn [Ne 12-40]
Specialty Yarns
Metallic yarns [M-type. Mx type & MST/MH type]
Air covered
yarns in Polyester & nylon
Conventional Covered
yarns
High temp
non-woven solusheets for
embroidery
Spandex yarn
[20-1120 Den]
Dope Dyed
yarns in various
colors
Air jet
yarns
Polyester chenille
yarns
Polyester film
Twisted yarn
on dye tube
etc.
Fabrics
100% Polyester & Blended woven
fabrics
Warp knit
Polyester & Nylon
fabrics including mosquito
nets
The subject
is also importer
and distributor various
international brands of
textile
machinery and
spare parts as follows:
“TSUDAKOMA” Air
jet loom from
Japan
“SCHMALE” Automatic
longitudinal slitter and
automatic double sided
hemming
from Germany
“T TECH
JAPAN” Sizing machine
and warping from
Japan
“SCLAVOS” PLC
based soft flow
dyeing machinery from
Greece
“GROZ-BECKERT” Knot
master AS/3 from
Germany
“CORINO MACCHINE”
Classic rope opener
from Italy
PRODUCTION CAPACITY
100 metric
tons per month
PURCHASE
Most of
raw materials are
purchased from local
suppliers, the remaining
are imported from
Japan, Germany, India,
Australia, Taiwan, Greece,
Italy, Cambodia, Vietnam
and Republic of
China.
MAJOR SUPPLIERS
Fico Corporation
Ltd. : Thailand
Tsudakoma Corp. : Japan
Carl Schmale
GmbH & Co. : Germany
T-Tech Japan
Corp. : Japan
Sclavos S.A. : Greece
Groz-Beckert KG. : Germany
Corino Machine
Spa. : Italy
SALES
60% of
the products is
sold locally by
wholesale to traders,
manufacturers and end-users,
the remaining 40%
is exported to
customers in more
than 30 countries
such as India, Republic of China, Korea, Vietnam,
Philippines, Indonesia, Japan, U.S.A.,
Brazil, Argentina, Guatemala, Ecuador,
Poland, Italy, Egypt, Kenya, Iran,
Pakistan, Sri Lanka, Laos, Hong
Kong, Australia, Portugal,
Morocco, United Kingdom,
Chile, Denmark, Uzbekistan,
Bangladesh, Middle East and European
countries.
RELATED AND AFFILIATED COMPANIES
Fico
Corporation Co., Ltd.
Business Type
: Importer and
distributor of embroidery
machines
Setafil
(Thailand) Co., Ltd.
Business Type
: Manufacturer of
embroidery yarn
Gemini
Textile Co., Ltd.
Business Type
: Manufacturer of
yarn
Gamma Textile Co.,
Ltd.
Business Type
: Manufacturer of
embroidery yarn
Bischoff
Gamma Co., Ltd.
Business Type
: Manufacturer of
textiles and garment
Eschler Thai Knit
Co., Ltd.
Business Type
: Manufacturer of
garment
Gamma Knit (Thailand)
Co., Ltd.
Business Type
: Manufacturer of
garment
Kyra Mod Co., Ltd.
Business Type
: Manufacturer of
fashion lingerie
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 to the
past two years.
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 T/T.
BANKING
Bangkok Bank
Public Company Limited
EMPLOYMENT
The subject
employs approximately 300
staff.
LOCATION DETAILS
The premise
is rented for
administrative office at
the heading address.
Premise is located
in a prime commercial area.
Factories and Warehouses:
-
149/196 Moo 3, Petchkasem
Rd., T. Omnoi, A.
Krathumban, Samutsakorn 74130
-
129/621 Moo 4,
Soi Pongsirichai 1,
Petchkasem Road, T. Omnoi,
A. Krathumban,
Samutsakorn
74130
-
88 Moo 5, T.
Nonghong, A. Panthong, Chonburi
20160
-
129/608 Moo 4, Soi
Pongsirichai 1, Petchkasem
Road, T. Omnoi, A. Krathumban,
Samutsakorn
74130
-
129/609 Moo 4, Soi
Pongsirichai 1, Petchkasem
Road, T. Omnoi, A. Krathumban,
Samutsakorn
74130
Branch Office:
-
2031 Soi
Rama 2 Soi
43, Bangmod, Jomthong,
Bangkok 10150
Note
Refer to
your given the
subject’s address at 9th
-10th Floor, Fico Place
Building,
18/8
Sukhumvit 21 Road [Asoke],
Klongtoeynua, Wattana, Bangkok 10110,
please be informed
that the correct
address should be 9th
Floor, Fico Place Building, 18/8 Sukhumvit 21 Road
[Asoke], Klongtoeynua, Wattana,
Bangkok 10110.
COMMENT
Subject
has a fair business performance in 2016
with an increase
in both sales
revenues and net
profit comparing to
the previous year.
Its business has been growing and expanding steadily with an increase in demand of the
products considerably.
The subject
is able to
maintain a moderate
business.
FINANCIAL INFORMATION
The capital
was registered at
Bht. 1,000,000 divided into
10,000 shares of
Bht. 100
each.
On
May 2,
2007, the capital
was increased to
Bht. 100,000,000 divided into
1,000,000
shares of Bht.
100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 29, 2016]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Krit
Srichawla Nationality:
Thai Address
: 361/1 Sukhumvit
71 Rd., Prakanongnua,
Wattana, Bangkok |
250,000 |
25.00 |
|
Mr. Akaradej
Srichawla Nationality:
Thai Address
: 335 Sukhumvit
71 Rd., Prakanongnua,
Wattana, Bangkok |
200,000 |
20.00 |
|
Mr. Amorn
Srichawla Nationality:
Thai Address
: 361/1 Sukhumvit
71 Rd., Prakanongnua,
Wattana, Bangkok |
200,000 |
20.00 |
|
Mr. Theprit
Srichawla Nationality:
Thai Address
: 361/1 Sukhumvit
71 Rd., Prakanongnua,
Wattana, Bangkok |
200,000 |
20.00 |
|
Mrs. Kiranjaspal
Srichawla Nationality:
Thai Address
: 361/1 Sukhumvit
71 Rd., Prakanongnua,
Wattana, Bangkok |
50,000 |
5.00 |
|
Mrs. Panita
Srichawla Nationality:
Thai Address
: 361/1 Sukhumvit
71 Rd., Prakanongnua,
Wattana, Bangkok |
50,000 |
5.00 |
|
Mrs. Suchada
Srichawla Nationality:
Thai Address
: 361/1 Sukhumvit
71 Rd., Prakanongnua,
Wattana, Bangkok |
50,000 |
5.00 |
Total
Shareholders : 7
Share
Structure [as at
April 29, 2016]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
1,000,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
1,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr.
Chatchawat Setthee No.
5535
FENATEX CO., LTD.
BALANCE SHEET [BAHT]
The latest
financial figures published for December 31, 2016,
2015 and 2014 were:
ASSETS
|
Current Assets |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Cash and Cash
Equivalent |
30,343,603.90 |
258,681.00 |
238,027.20 |
|
Trade
Accounts and Other Receivable |
875,665,120.38 |
843,699,849.19 |
743,056,092.76 |
|
Inventories |
192,845,569.97 |
183,465,053.98 |
187,382,466.95 |
|
Other
Current Assets |
- |
- |
143,378,844.75 |
|
|
|
|
|
|
Total
Current Assets |
1,098,854,321.25 |
1,027,423,584.17 |
1,074,055,431.66 |
|
Cash at Bank pledged as a Collateral |
- |
- |
48,475,545.34 |
|
Other Long-term Loans |
66,180,843.36 |
49,691,011.48 |
- |
|
Long-term Lending
to Person or Related Company
|
374,467,750.48 |
264,038,850.00 |
193,938,850.00 |
|
Property, Plant and Equipment |
8,284,711.49 |
10,088,336.13 |
11,153,789.27 |
|
Other Non-current Assets |
278,000.00 |
202,000.00 |
- |
|
Total Assets |
1,548,065,626.58 |
1,351,443,781.78 |
1,327,623,616.27 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Bank
Overdraft from Financial
Institutions |
807,673,602.31 |
848,595,974.90 |
27,863,489.71 |
|
Trade
Accounts and Other Payable |
282,026,998.22 |
192,384,300.73 |
306,591,973.30 |
|
Current Portion of
Long-term Liabilities |
1,203,585.83 |
1,430,545.98 |
- |
|
Short-term Loan
from Financial Institutions |
210,000,000.00 |
100,000,000.00 |
581,295,971.15 |
|
Accrued Income
Tax |
8,822,901.69 |
3,364,020.04 |
4,660,110.27 |
|
Other
Current Liabilities |
- |
- |
222,560,574.73 |
|
|
|
|
|
|
Total Current Liabilities |
1,309,727,088.05 |
1,145,774,841.65 |
1,142,972,119.16 |
|
|
|
|
|
|
Estimated Liabilities
for Employee
Benefits |
2,100,738.72 |
1,578,691.00 |
- |
|
Other Non-current Liabilities |
3,104,504.89 |
4,047,661.73 |
- |
|
Total
Liabilities
|
1,314,932,331.66 |
1,151,401,194.38 |
1,142,972,119.16 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value
authorized, issued and
fully paid share
capital 1,000,000 shares |
100,000,000.00 |
100,000,000.00 |
100,000,000.00 |
|
|
|
|
|
|
Capital
Paid |
100,000,000.00 |
100,000,000.00 |
100,000,000.00 |
|
Retained Earning -Unappropriated [Deficit] |
133,133,294.92 |
100,042,587.40 |
84,651,497.11 |
|
Total Shareholders'
Equity |
233,133,294.92 |
200,042,587.40 |
184,651,497.11 |
|
Total
Liabilities and Shareholders' Equity |
1,548,065,626.58 |
1,351,443,781.78 |
1,327,623,616.27 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Sales or
Services Income |
2,573,187,947.95 |
2,176,722,525.24 |
2,334,123,187.88 |
|
Interest Income |
10,884,753.23 |
823,583.42 |
- |
|
Other
Income |
45,534,674.65 |
19,306,786.87 |
18,905,412.89 |
|
Total Revenues |
2,629,607,375.83 |
2,196,852,895.53 |
2,353,028,600.77 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Change in
Finished Goods and Work in Progress |
2,471,910,194.88 |
2,071,499,811.40 |
- |
|
Employee Expenses |
23,993,269.00 |
22,763,341.65 |
- |
|
Depreciation and Amortization |
2,747,183.61 |
2,699,849.66 |
- |
|
Other Expenses |
57,470,040.91 |
48,638,455.20 |
- |
|
Cost of Goods
Sold |
- |
- |
2,209,340,761.89 |
|
Selling and Administrative Expenses |
- |
- |
96,527,134.87 |
|
Total Expenses |
2,556,120,688.40 |
2,145,601,457.91 |
2,305,867,896.76 |
|
|
|
|
|
|
Profit / [Loss]
before Financial Cost &
Income Tax |
73,486,687.43 |
51,251,437.62 |
47,160,704.01 |
|
Financial Cost |
[29,007,493.67] |
[29,710,305.93] |
[17,421,173.58] |
|
Profit / [Loss]
before Income Tax |
44,479,193.76 |
21,541,131.69 |
29,739,530.43 |
|
Income Tax |
[11,388,486.24] |
[6,150,041.40] |
[6,621,850.31] |
|
|
|
|
|
|
Net Profit /
[Loss] |
33,090,707.52 |
15,391,090.29 |
23,117,680.12 |
FENATEX CO.,
LTD.
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
|
|
|
|
|
|
|
LIQUIDITY
RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.84 |
0.90 |
0.94 |
|
QUICK RATIO |
TIMES |
0.69 |
0.74 |
0.65 |
|
|
|
|
|
|
|
ACTIVITY
RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
310.59 |
215.77 |
209.27 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.66 |
1.61 |
1.76 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
28.48 |
32.33 |
30.96 |
|
INVENTORY TURNOVER |
TIMES |
12.82 |
11.29 |
11.79 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
124.21 |
141.47 |
116.20 |
|
RECEIVABLES TURNOVER |
TIMES |
2.94 |
2.58 |
3.14 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
41.64 |
33.90 |
50.65 |
|
CASH CONVERSION CYCLE |
DAYS |
111.04 |
139.90 |
96.50 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
96.06 |
95.17 |
94.65 |
|
SELLING & ADMINISTRATION |
% |
0.11 |
0.12 |
4.14 |
|
INTEREST |
% |
1.13 |
1.36 |
0.75 |
|
GROSS PROFIT MARGIN |
% |
6.13 |
5.76 |
6.16 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.86 |
2.35 |
2.02 |
|
NET PROFIT MARGIN |
% |
1.29 |
0.71 |
0.99 |
|
RETURN ON EQUITY |
% |
14.19 |
7.69 |
12.52 |
|
RETURN ON ASSET |
% |
2.14 |
1.14 |
1.74 |
|
EARNING PER SHARE |
BAHT |
33.09 |
15.39 |
23.12 |
|
|
|
|
|
|
|
LEVERAGE
RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.85 |
0.85 |
0.86 |
|
DEBT TO EQUITY RATIO |
TIMES |
5.64 |
5.76 |
6.19 |
|
TIME INTEREST EARNED |
TIMES |
2.53 |
1.73 |
2.71 |
|
|
|
|
|
|
|
ANNUAL
GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
18.21 |
(6.74) |
|
|
OPERATING PROFIT |
% |
43.38 |
8.67 |
|
|
NET PROFIT |
% |
115.00 |
(33.42) |
|
|
FIXED ASSETS |
% |
(17.88) |
(9.55) |
|
|
TOTAL ASSETS |
% |
14.55 |
1.79 |
|
ANNUAL
GROWTH : IMPRESSIVE
An
annual sales growth is 18.21%. Turnover has increased from THB
PROFITABILITY
: IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
6.13 |
Satisfactory |
Industrial Average |
7.84 |
|
Net Profit Margin |
1.29 |
Satisfactory |
Industrial Average |
1.91 |
|
Return on Assets |
2.14 |
Satisfactory |
Industrial Average |
2.93 |
|
Return on Equity |
14.19 |
Impressive |
Industrial Average |
7.39 |
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 6.13%. 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 1.29%. 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 2.14%.
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 14.19%, 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 |
0.84 |
Risky |
Industrial Average |
1.76 |
|
Quick Ratio |
0.69 |
|
|
|
|
Cash Conversion Cycle |
111.04 |
|
|
|
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 2016, decrease from 0.9 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 0.69 times in 2016, decrease from
0.74 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 112 days.
Trend of the
average competitors in the same industry for last 5 years
Current
Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE
RATIO
|
Debt Ratio |
0.85 |
Acceptable |
Industrial Average |
0.56 |
|
Debt to Equity Ratio |
5.64 |
Risky |
Industrial Average |
1.29 |
|
Times Interest Earned |
2.53 |
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 2.54 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 0.85 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 |
310.59 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.66 |
Impressive |
Industrial Average |
1.54 |
|
Inventory Conversion Period |
28.48 |
|
|
|
|
Inventory Turnover |
12.82 |
Impressive |
Industrial Average |
3.17 |
|
Receivables Conversion Period |
124.21 |
|
|
|
|
Receivables Turnover |
2.94 |
Satisfactory |
Industrial Average |
3.41 |
|
Payables Conversion Period |
41.64 |
|
|
|
The
company's Account Receivable Ratio is calculated as 2.94 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 32 days at the end of 2015 to 28 days at the end of
2016. This represents a positive trend. And Inventory turnover has increased
from 11.29 times in year 2015 to 12.82 times in year 2016.
The
company's Total Asset Turnover is calculated as 1.66 times and 1.61 times in
2016 and 2015 respectively. This ratio is determined by dividing total assets
into total sales turnover. The ratio measures the activity of the assets and
the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed
Assets Turnover Stable
Total
Assets Turnover Downtrend
Inventory
Turnover Downtrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 65.08 |
|
|
1 |
INR 89.85 |
|
Euro |
1 |
INR 80.16 |
|
THB |
1 |
INR 2.08 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRA |
|
|
|
|
Report Prepared
by : |
KET |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low risk
of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.