MIRA
INFORM REPORT
|
Report Date : |
04.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
SPUN SILK
WORLD CO., LTD. |
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Formerly Known As : |
SPUN SILK [THAILAND] CO., LTD |
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Registered Office : |
724 Moo 5,
Soi Pracha, Sukhumvit
Road Taiban, Muang, Samutprakarn 10280 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
22.02.2010 |
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Com. Reg. No.: |
0115553002736 |
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Legal Form : |
Private
Limited Company |
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Line of Business : |
Manufacturer, Distributor
and Exporter of Yarns |
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 |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
Company name
SPUN
SILK WORLD CO.,
LTD.
[FORMER
: SPUN SILK
[THAILAND] CO., LTD.]
SUMMARY
BUSINESS
ADDRESS : 724
MOO 5, SOI
PRACHA, SUKHUMVIT ROAD,
TAIBAN, MUANG,
SAMUTPRAKARN 10280
TELEPHONE : [66] 2703-9356-8
FAX :
[66] 2389-5604
E-MAIL
ADDRESS : panitan@spunsilkworld.com
preetanat@spunsilkworld.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2010
REGISTRATION
NO. : 0115553002736
CAPITAL REGISTERED : BHT. 3,000,000
CAPITAL PAID-UP : BHT.
3,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. PRASIT KIWCHAROENWONG, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 50
LINES
OF BUSINESS : 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 established
on February 22,
2010 as a
private limited company under
the originally registered
name “Spun Silk
[Thailand] Co., Ltd.”
by Thai group, the
Kiwcharoenwong family. On
March 26, 2010,
the registered name was
changed to SPUN
SILK WORLD CO.,
LTD. Its business
objective is to
manufacture and distribute
various kinds of
yarns to both
domestic and international
markets. It currently
employs approximate 50 staff.
The
subject’s registered address
is 724 Moo
5, Soi Pracha,
Sukhumvit Rd., Taiban,
Muang, Samutprakarn 10280,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Preetanat Kiwcharoenwong |
|
Thai |
25 |
|
Mr. Prasit Kiwcharoenwong |
|
Thai |
55 |
|
Mrs. Chaemchan Kiwcharoenwong |
|
Thai |
55 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Prasit Kiwcharoenwong is
the Managing Director.
He is Thai
nationality with the
age of 55
years old.
Mr. Preetanat Kiwcharoenwong is
the Assistant Managing
Director.
He is Thai
nationality with the
age of 25
years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing and
distributing various kinds
of yarn products,
such as spun
silk yarn, silk
blended yarn, silk
Melange yarn, dyed
silk yarn, Eri
silk yarn and
etc., for clothing
and other applications.
PRODUCTION CAPACITY
240 tons per
annum
PURCHASE
100%
of raw material
is purchased from
local suppliers.
MAJOR
SUPPLIER
Shinano
Kenshi [Thailand] Co.,
Ltd.
SALES
The products are
sold locally to
wholesalers, manufacturers and
end-users, as well as exporting to Japan,
United States of
America, Singapore, Hong
Kong and Europe.
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
nor affiliated company
here in Thailand.
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
for 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.
Exports are against
T/T.
BANKING
The
banker’s name was
not disclosed.
EMPLOYMENT
The
subject employs approximately
50 staff.
LOCATION DETAILS
The
premise is owned
for administrative office at
the heading address.
Premise is located
in provincial, on
the outskirts of
Bangkok.
Factory
is located on
112,000 square meters
of area at
278 Moo 9,
Kaengkoi-Salaengphan Rd., T. Banpa,
A. Kaengkoi, Saraburi 18110.
Tel.: [66] 36
251-495, Fax. [66]
36 251-494.
REMARK
CREDIT
OF US$ 1,000,000
AGAINST D/A TERMS
SHOULD BE ON
SECURED BASIS.
COMMENT
The subject was
formed in 2010
as a manufacturer,
distributor and exporter
of yarns for textile and garment industries. Its
first year performance is
considered satisfactory. With
the improvement of
textile industry has prompted
the subject to increase
its sales to
meet with rising demand
of yarns in
this year.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 3,000,000 divided into 30,000 shares of
Bht. 100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE
[as at
April 30, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Chaemchan Kiwcharoenwong Nationality: Thai Address : 724
Moo 5, Soi
Pracha, T. Taiban, A.
Muang, Samutprakarn |
15,000 |
50.00 |
|
Mr. Preetanat Kiwcharoenwong Nationality: Thai Address : 724
Moo 5, Soi
Pracha, T. Taiban,
A. Muang, Samutprakarn |
5,000 |
|
|
Mr. Prasit Kiwcharoenwong Nationality: Thai Address : 724
Moo 5, Soi
Pracha, T. Taiban, A. Muang,
Samutprakarn |
5,000 |
= 50.00 |
|
Mr. Panithan Kiwcharoenwong Nationality: Thai Address : 724
Moo 5, Soi
Pracha, T. Taiban,
A. Muang, Samutprakarn |
5,000 |
|
Total Shareholders : 4
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Suvimol Thiengthae No.
7069
bALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 was :
ASSETS
|
Current Assets |
2010 |
|
|
|
|
Cash and Cash Equivalent |
6,584,580.64 |
|
Trade Accounts Receivable |
4,246,934.75 |
|
Inventories |
18,300,280.96 |
|
Other Current Assets |
2,400,931.48 |
|
|
|
|
Total Current Assets
|
31,532,727.83 |
|
|
|
|
Fixed Assets |
777,920.25 |
|
Total Assets |
32,310,648.08 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2010 |
|
|
|
|
Trade Accounts Payable |
2,361,237.92 |
|
Short-term Loan from Person
or Related Company |
23,311,069.90 |
|
Other Current Liabilities |
3,274,475.20 |
|
|
|
|
Total Current Liabilities |
28,946,783.02 |
|
Total Liabilities |
28,946,783.02 |
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 30,000 shares |
3,000,000.00 |
|
|
|
|
Capital Paid |
3,000,000.00 |
|
Retained Earning- Unappropriated |
363,865.06 |
|
Total Shareholders' Equity |
3,363,865.06 |
|
Total Liabilities & Shareholders' Equity |
32,310,648.08 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
Feb. 22,
2010 – Dec. 31,
2010 |
|
|
|
|
Sales Income |
34,296,930.68 |
|
Rental Income |
834,224.00 |
|
Other Income |
763,084.26 |
|
Total Revenues |
35,894,238.94 |
|
Expenses |
|
|
|
|
|
Cost of Goods Sold
|
29,143,969.66 |
|
Selling Expenses |
563,294.40 |
|
Administrative Expenses |
5,186,062.55 |
|
Loss on Exchange Rate |
240,298.62 |
|
Total Expenses |
35,133,625.23 |
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
760,613.71 |
|
Financial Cost |
[346,688.39] |
|
Profit / [Loss] before Income
Tax |
413,925.32 |
|
Income Tax |
[50,060.27] |
|
|
|
|
Net Profit / [Loss] |
363,865.06 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
CURRENT RATIO |
TIMES |
1.09 |
|
QUICK RATIO |
TIMES |
0.37 |
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
45.16 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.09 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
229.19 |
|
INVENTORY TURNOVER |
TIMES |
1.59 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
44.12 |
|
RECEIVABLES TURNOVER |
TIMES |
8.27 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
29.57 |
|
CASH CONVERSION CYCLE |
DAYS |
243.75 |
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
COST OF GOODS SOLD |
% |
82.96 |
|
SELLING & ADMINISTRATION |
% |
16.37 |
|
INTEREST |
% |
0.99 |
|
GROSS PROFIT MARGIN |
% |
19.21 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.17 |
|
NET PROFIT MARGIN |
% |
1.04 |
|
RETURN ON EQUITY |
% |
10.82 |
|
RETURN ON ASSET |
% |
1.13 |
|
EARNING PER SHARE |
BAHT |
12.13 |
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
DEBT RATIO |
TIMES |
0.90 |
|
DEBT TO EQUITY RATIO |
TIMES |
8.61 |
|
TIME INTEREST EARNED |
TIMES |
2.19 |
PROFITABILITY
RATIO
|
Gross Profit Margin |
19.21 |
Impressive |
Industrial Average |
5.59 |
|
Net Profit Margin |
1.04 |
Impressive |
Industrial Average |
(3.24) |
|
Return on Assets |
1.13 |
Impressive |
Industrial Average |
(2.74) |
|
Return on Equity |
10.82 |
Impressive |
Industrial Average |
(6.47) |
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. Gross Profit Margin is 19.21%. When
compared with the industry average, the ratio of the company was higher. This
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. Net Profit Margin ratio is 1.04%
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
1.13%, 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 10.82%, 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 RATIO
|
Current Ratio |
1.09 |
Impressive |
Industrial Average |
1.05 |
|
Quick Ratio |
0.37 |
|
|
|
|
Cash Conversion Cycle |
243.75 |
|
|
|
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 1.09 times in 2010, increase from 0 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 0.37 times in 2010,
increase from 0 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 244 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.90 |
Risky |
Industrial Average |
0.52 |
|
Debt to Equity Ratio |
8.61 |
Risky |
Industrial Average |
1.08 |
|
Times Interest Earned |
2.19 |
Impressive |
Industrial Average |
(0.31) |
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 2.2 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 0.9 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 Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
45.16 |
Impressive |
Industrial Average |
1.49 |
|
Total Assets Turnover |
1.09 |
Impressive |
Industrial Average |
0.77 |
|
Inventory Conversion Period |
229.19 |
|
|
|
|
Inventory Turnover |
1.59 |
Acceptable |
Industrial Average |
2.37 |
|
Receivables Conversion Period |
44.12 |
|
|
|
|
Receivables Turnover |
8.27 |
Impressive |
Industrial Average |
4.88 |
|
Payables Conversion Period |
29.57 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.38 |
|
|
1 |
Rs.72.20 |
|
Euro |
1 |
Rs.62.87 |
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.