MIRA INFORM REPORT

 

 

Report No. :

499651

Report Date :

28.03.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

SUNFLAG  (THAILAND)  LTD.

 

 

Registered Office :

Room  1405,  14th  Floor,   Bb  Building,  54   Sukhumvit 21  Road  [Asoke], Klongtoey  Nua,  Wattana, Bangkok   10110

 

 

Country :

Thailand

 

 

Financials (as on) :

31.03.2017

 

 

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  wide range  of  Polyester  Yarn  including  Polyester  Chips,  Partially  Oriented Yarn  [POY],  Draw  Texturised  Yarn  [DTY],  Filament  Yarns  and  Polyester  Staple  Fiber [PSF]. 

 

 

No. of Employees :

308

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

B

 

Credit Rating

Explanation

Rating Comments

B

Medium Risk

Business dealings permissible on a regular monitoring basis

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but Correct

 

 

Litigation :

Clear

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List

 

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

 

SUNFLAG  (THAILAND)  LTD

 

 

SUMMARY

 

BUSINESS  ADDRESS                          :           ROOM  1405,  14th  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                  :           ROOM  1213,  12th  FLOOR,   BB  BUILDING, 

                                                                        54   SUKHUMVIT 21  ROAD  [ASOKE], 

                                                                        KLONGTOEY  NUA,  WATTANA,

                                                                        BANGKOK   10110,  THAILAND                                                            

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           :     4.63%

                                                                        FOREIGN   :   95.37%

FISCAL  YEAR  CLOSING  DATE          :           MARCH  31                              

LEGAL  STATUS                                  :           PRIVATE  LIMITED  COMPANY

EXECUTIVE                                         :           MR.  LALIT   KUMAR,  INDIAN

                                                                        MANAGING  DIRECTOR

NO.  OF  STAFF                                   :           308

LINES  OF  BUSINESS                         :           POLYESTER  CHIPS  AND  FILAMENT  YARNS

                                                            MANUFACTURER,  EXPORTER  AND  DISTRIBUTOR

 

 

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  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  for  both  local  and overseas  markets.  Subject  currently  employs  308  staff. 

 

The  subject  is  a  subsidiary  of  Texma  Consultant Co.,  Ltd.,  in  British  Virgin  Islands.

 

The  subject’s  operation  was  granted  promotional  privileges  by the Board  of  Investment.

 

The  subject’s  registered  address  is  Room  1213,  12th  Floor,  BB  Building,  54  Sukhumvit  21  Road  [Asoke],  Klongtoey  Nua,  Wattana,  Bangkok  10110,  while  the  current  operation  address  is  “Room  1213,  12th  Floor”  located  at  the  same  building.

 

 

THE  BOARD  OF  DIRECTORS

 

        Name

 

Nationality

Age

 

 

 

 

Mr.  Lalit  Kumar           

[x]

Indian

69

Mr.  Alok  Bhardwaj

[x]

British

49

Mr.  Vinod  Kumar  Kapur

 

Indian

69

 

 

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  69  years  old.

 

Mr.  Vinod  Kumar  Kapur  is  the  Deputy  Managing  Director  and  Factory  Manager.

He  is  Indian  nationality  with  the  age  of  69  years  old.

 

 

BUSINESS  OPERATIONS

 

The  subject’s  activities  are  manufacturer,  exporter  and  distributor  wide range  of  Polyester  Yarn  including  Polyester  Chips,  Partially  Oriented Yarn  [POY],  Draw  Texturised  Yarn  [DTY],  Filament  Yarns  and  Polyester  Staple  Fiber [PSF]. 

 

 

PRODUCTION  CAPACITY

 

Polyester  Chip             :  30,000  tons/year

Partially  Oriented  Yarn :    2,500  tons/year

Draw  Texturised  Yarn   :    4,500  tons/year

Filament  Yarn               :    3,000  tons/year      

Polyester  Staple  Fiber :  36,000  tons/year

 

 

IMPORT  [COUNTRIES]

 

30%  of   raw  materials,  cotton  yarn  and  chemicals  are  imported  from  India,

Hong Kong,  Republic  of  China,  Germany,  Switzerland,  Japan   and  Taiwan.

 

 

MAJOR  SUPPLIER

 

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,  Vietnam,  Japan,  Nigeria, Kenya,  Bangladesh,  India,  Pakistan,  Taiwan,  Korea,  Canada,  Sri  Lanka,  Malaysia,  Indonesia,  Myanmar,  South  Africa,  U.S.A.,  and  Nepal. 

 

 

MAJOR  CUSTOMERS

 

Fils  Promptex  Yarns  Inc.                     :  Canada

United  Yarn  Products  Inc.                   :  U.S.A.

 

 

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  Company  Limited     

  [Head  Office  :  333  Silom Rd.,  Silom,  Bangrak,  Bangkok]

 

The  Siam Commercial  Bank  Public  Company  Limited       

  [Chidlom  Office  :  1060  New  Petchaburi  Rd.,  Makasan,  Rajthewee,  Bangkok]

  [Head  Office       :  9  Ratchadapisek  Rd.,  Ladyao,  Jatujak,  Bangkok]

 

Kasikornbank  Public  Company  Limited

  [Head  Office   :  1  Kasikorn  Lane,  Rajburana  Rd.,  Rajburana,  Bangkok]

 

TMB  Bank  Public  Company  Limited

 

 

EMPLOYMENT

 

The  subject  employs  308  staff.  [office  staff   and  factory  workers]

 

 

LOCATION  DETAILS

 

The  premise  is  rented  for  operating  administrative  office  at  the  heading  address.  Premise  is  located  in  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

 

Despite  of  an  increase  in  sales  or  service  income  as  of  March  31,  2017  comparing  to  the  previous  year,  the subject  obtained  another  year  of net  loss  from  higher  expenses  relatively.  The  subject  has  to  emphasize  on its  efficiency  and  effectiveness  on  cost   control  or  related  expenses,  otherwise  it  would   continue  to  obtain  a  net loss  which  could  erode  its  retained  earning  in  the  future.

 

 

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.       750  million  on  June  28,  1995

            Bht.       850  million  on  March  26,  1997

            Bht.       965  million  on  March  24,  2000

            Bht.    1,025  million  on  August  24,  2001

            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  October  5,  2017]  at  Bht.  426,250,000  of  capitalization

 

                                    NAME

HOLDING

%

 

 

 

Texma  Consultant  Co.,  Ltd.

Nationality:  BVI

Address     :  24 De Castro Street Wickhams Cay I, 
Rd.,  Town,

                    Tortola,  British  Virgin  Islands.

4,024,525

94.42

Mr.  Songkram  Chewaprawatdamrong

Nationality:  Thai

Address     :  55  Moo 6,  Samaedam,  Bangkhunthien, 

                    Bangkok

   47,500

1.11

Mr.  Lalit  Kumar 

Nationality:  Indian

Address     :  97/56  Soi  Sukhumvit  24,  Sukhumvit  Rd., 

                    Klongtoey,  Klongton,  Bangkok 

40,467

0.95

Mr.  Suphat  Sivasriaumphai

Nationality:  Thai

Address     :  219/2  Rajawong  Rd.,  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     :  20  Sukhumvit  15  Rd.,  Klongtoeynua  Wattana, 

                    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.  Somwang  Boonthongrungtawee 

Nationality:  Thai

Address     :  10/72  Moo 7,  Thakham  Bangkhunthien, 

                    Bangkok

2,033

 

0.05

Mr.  Alok  Bhardwaj

Nationality:  British

Address     :  Regent’s  Park,  Camden  Town,  England 

100

0.01

 

Total  shareholders  :  11

 

SHARE  STRUCTURE  [AS  AT  OCTOBER  5,  2017]

 

Nationality

Shareholders

No. of  Share

% Shares

 

 

 

 

Thai

8

197,408

4.63

Foreign

3

4,065,092

95.37

 

Total

 

11

 

4,262,500

 

100.00

 

 

NAME  OF  AUDITOR  &  CERTIFIED  PUBLIC  ACCOUNTANT  NO.

 

Ms. Nongnuch Ouitrakul   No.  2241

 

 

Financials

 

SUNFLAG  (THAILAND)  LTD.

 

BALANCE SHEET [BAHT]

 

The  latest  financial  figures  published for  March  31,  2017,  2016  and  2015  were:

          

ASSETS

                                                                                                

Current Assets

2017

2016

2015

 

 

 

 

Cash  and  Cash  Equivalent

33,699,263

32,747,577

47,442,920

Trade  Accounts  and  Other  Receivable

473,541,863

417,921,399

358,390,007

Inventories

212,835,367

233,256,178

323,975,225

Other  Current  Assets       

4,264,217

3,654,238

3,682,109

 

 

 

 

Total  Current  Assets                

724,340,710

687,579,392

733,490,261

 

Cash at Bank under Commitment

 

3,340,474

 

8,289,927

 

8,233,899

Property, Plant and Equipment           

1,607,553,243

1,674,136,193

1,758,499,983

Intangible Assets

114,265

189,863

265,461

Other Non-current  Assets                       

299,071

635,810

485,187

 

Total  Assets                 

 

2,335,647,763

 

2,370,831,185

 

2,500,974,791

 

 

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

 

Current Liabilities

2017

2016

2015

 

 

 

 

Short-term Loan from Financial Institutions

140,200,373

4,906,800

-

Trade  Accounts   and  Other Payable

72,764,524

76,485,796

65,534,652

Current Portion  of  Long-term Loans

   from Financial Institutions

 

45,500,000

 

23,000,000

 

8,500,000

Current  Portion  Hire-purchase  Payable

807,430

763,926

-

Other  Current  Liabilities             

-

418,320

491,789

 

 

 

 

Total Current Liabilities

259,272,327

105,574,842

74,526,441

 

 

 

 

Long-term Loan from  Financial Institutions

   Net  of  Current Portion

 

171,784,060

 

226,223,901

 

252,790,648

Hire-purchase  Payable,

  Net  of  Current  Portion

 

2,067,365

 

2,874,795

 

-

Employee Benefits Obligation

17,416,527

15,988,167

15,682,595

 

Total  Liabilities            

 

450,540,279

 

350,661,705

 

342,999,684

 

 

 

 

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

1,447,857,484

1,582,919,480

1,720,725,107

 

Total  Shareholders' Equity

 

1,885,107,484

 

2,020,169,480

 

2,157,975,107

 

Total  Liabilities  and  Shareholders' 

    Equity

 

 

2,335,647,763

 

 

2,370,831,185

 

 

2,500,974,791

 

 

PROFIT  &  LOSS  ACCOUNT

 

Revenue

2017

2016

2015

 

 

 

 

Sales Income                             

2,380,134,108

2,202,728,628

2,012,415,205

Insurance  Claims

-

-

15,462,500

Other  Income                

1,590,552

34,580,654

8,094,811

 

Total  Revenues           

 

2,381,724,660

 

2,237,309,282

 

2,035,972,516

 

Expenses

 

 

 

 

 

 

 

Cost  of  Goods  Sold                            

2,370,991,466

2,232,888,680

2,018,652,165

Selling Expenses

71,617,728

73,311,561

45,304,057

Administrative  Expenses

46,826,484

46,414,207

44,424,981

 

Total Expenses             

 

2,489,435,678

 

2,352,614,448

 

2,108,381,203

 

 

 

 

Loss  before  Financial Cost

[107,711,018]

[115,305,166]

[72,408,687]

Financial Cost

[27,350,978]

[22,500,461]

[21,243,692]

 

 

 

 

Net  Profit / [Loss]

[135,061,996]

[137,805,627]

[93,652,379]

 

 

SUNFLAG  (THAILAND)  LTD.

 

FINANCIAL  ANALYSIS

 

ITEM

UNIT

2017

2016

2015

 

 

 

 

 

LIQUIDITY RATIO

 

 

 

 

CURRENT RATIO

TIMES

2.79

6.51

9.84

QUICK RATIO

TIMES

1.96

4.27

5.45

 

 

 

 

 

ACTIVITY RATIO

 

 

 

 

FIXED ASSETS TURNOVER

TIMES

1.48

1.32

1.14

TOTAL ASSETS TURNOVER

TIMES

1.02

0.93

0.80

INVENTORY CONVERSION PERIOD

DAYS

32.76

38.13

58.58

INVENTORY TURNOVER

TIMES

11.14

9.57

6.23

RECEIVABLES CONVERSION PERIOD

DAYS

72.62

69.25

65.00

RECEIVABLES TURNOVER

TIMES

5.03

5.27

5.62

PAYABLES CONVERSION PERIOD

DAYS

11.20

12.50

11.85

CASH CONVERSION CYCLE

DAYS

94.18

94.88

111.73

 

 

 

 

 

PROFITABILITY RATIO

 

 

 

 

COST OF GOODS SOLD

%

99.62

101.37

100.31

SELLING & ADMINISTRATION

%

4.98

5.44

4.46

INTEREST

%

1.15

1.02

1.06

GROSS PROFIT MARGIN

%

0.45

0.20

0.86

NET PROFIT MARGIN BEFORE EX. ITEM

%

(4.53)

(5.23)

(3.60)

NET PROFIT MARGIN

%

(5.67)

(6.26)

(4.65)

RETURN ON EQUITY

%

(7.16)

(6.82)

(4.34)

RETURN ON ASSET

%

(5.78)

(5.81)

(3.74)

EARNING PER SHARE

BAHT

(31.69)

(32.33)

(21.97)

 

 

 

 

 

LEVERAGE RATIO

 

 

 

 

DEBT RATIO

TIMES

0.19

0.15

0.14

DEBT TO EQUITY RATIO

TIMES

0.24

0.17

0.16

TIME INTEREST EARNED

TIMES

(3.94)

(5.12)

(3.41)

 

 

 

 

 

ANNUAL GROWTH

 

 

 

 

SALES GROWTH

%

8.05

9.46

 

OPERATING PROFIT

%

(6.59)

59.24

 

NET PROFIT

%

1.99

(47.15)

 

FIXED ASSETS

%

(3.98)

(4.80)

 

TOTAL ASSETS

%

(1.48)

(5.20)

 

 

 

ANNUAL GROWTH : ACCEPTABLE

 

An annual sales growth is 8.05%. Turnover has increased from THB 2,202,728,628.00 in 2016 to THB 2,380,134,108.00 in 2017. While net profit has increased from THB -137,805,627.00 in 2016 to THB -135,061,996.00 in 2017. And total assets has decreased from THB 2,370,831,185.00 in 2016 to THB 2,335,647,763.00 in 2017.             

                       

PROFITABILITY : RISKY

 

 

PROFITABILITY RATIO

 

Gross Profit Margin

0.45

Deteriorated

Industrial Average

2.20

Net Profit Margin

(5.67)

Deteriorated

Industrial Average

(3.29)

Return on Assets

(5.78)

Deteriorated

Industrial Average

(3.19)

Return on Equity

(7.16)

Deteriorated

Industrial Average

(5.98)

 

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 0.45%. 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 -5.67%. 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 -5.78%.

 

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. When compared with the industry average, it was lower, the company's figure is -7.16%.

 

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

2.79

Impressive

Industrial Average

0.51

Quick Ratio

1.96

 

 

 

Cash Conversion Cycle

94.18

 

 

 

 

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 2.79 times in 2017, decrease from 6.51 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 1.96 times in 2017, decrease from 4.27 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 95 days.

 

Trend of the average competitors in the same industry for last 5 years

Current Ratio                 Downtrend

 

 

LEVERAGE : SATISFACTORY

 

 

LEVERAGE RATIO

 

Debt Ratio

0.19

Impressive

Industrial Average

0.58

Debt to Equity Ratio

0.24

Impressive

Industrial Average

1.31

Times Interest Earned

(3.94)

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 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 -3.94 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 0.19 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                                Uptrend

Times Interest Earned                Stable

 

ACTIVITY : IMPRESSIVE

 

 

ACTIVITY RATIO

 

Fixed Assets Turnover

1.48

Impressive

Industrial Average

-

Total Assets Turnover

1.02

Impressive

Industrial Average

0.91

Inventory Conversion Period

32.76

 

 

 

Inventory Turnover

11.14

Impressive

Industrial Average

5.76

Receivables Conversion Period

72.62

 

 

 

Receivables Turnover

5.03

Satisfactory

Industrial Average

6.11

Payables Conversion Period

11.20

 

 

 

 

The company's Account Receivable Ratio is calculated as 5.03 and 5.27 in 2017 and 2016 respectively. This ratio measures the efficiency of the company in managing its trade debtors to generate revenue. A lower ratio may indicate over extension and collection problems. Conversely, a higher ratio may indicate an overtly stringent policy. In this case, the company's A/R ratio in 2017 decreased from 2016. This would suggest the company had deteriorated in the management of its debt collections.

 

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 38 days at the end of 2016 to 33 days at the end of 2017. This represents a positive trend. And Inventory turnover has increased from 9.57 times in year 2016 to 11.14 times in year 2017.

 

The company's Total Asset Turnover is calculated as 1.02 times and 0.93 times in 2017 and 2016 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                Downtrend

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

INR 64.80

UK Pound

1

INR 92.26

Euro

1

INR 80.76

Thai baht

1

INR 2.08 

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

VAR

 

 

Report Prepared by :

SYL

                                                


 

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)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.