MIRA
INFORM REPORT
|
Report Date : |
24.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
L.V. TECHNOLOGY PUBLIC COMPANY LIMITED |
|
|
|
|
Registered Office : |
9th, ,
23rd, 24th Floor,
Zone C-D, K.P.N.
Tower, 719 Rama 9
Road, Bangkapi, Huaykwang, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
13.08.1996 |
|
|
|
|
Com. Reg. No.: |
0107546000211 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Engineering Service Provider |
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 : |
No Complaints |
|
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 – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
L.V.
TECHNOLOGY PUBLIC COMPANY
LIMITED
SUMMARY
BUSINESS
ADDRESS : 9th, , 23rd, 24th FLOOR,
ZONE C-D, K.P.N.
TOWER,
719
RAMA 9 ROAD,
BANGKAPI, HUAYKWANG,
TELEPHONE : [66] 2717-0835,
2717-0847-9
FAX :
[66] 2717-0841,
2717-0577
E-MAIL
ADDRESS : mkt@lv-techology.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1996
REGISTRATION
NO. : 0107546000211 [Former : 0105539088891]
CAPITAL REGISTERED : BHT. 490,555,981
CAPITAL PAID-UP : BHT.
375,035,254
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. HANS JORGEN
NIELSEN, DANISH
MANAGING DIRECTOR
NO.
OF STAFF : 140
LINES
OF BUSINESS : ENGINEERING SERVICE
PROVIDER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was originally
formed on August
13, 1996 as
a private limited
company by Thai and
Danish groups, under
the registered name “L.
V. Technology Co.,
Ltd.”, with the
business objective to
provide engineering service,
specialty in the
field of cement
industry. On August
4, 2003, its
status was changed
to public company,
under the name
L. V. TECHNOLOGY PUBLIC
COMPANY LIMITED, and
listed on the
Stock Exchange of Thailand
on July 14,
2004. Subject expanded
its business to
provide engineering consultancy,
design and manufacture
equipment that improve
efficiency machinery for cement industry. It currently employs approximate
140 staff.
The
subject’s registered address
is 719 K.P.N. Tower,
Rama 9 Rd.,
Bangkapi, Huaykwang, Bangkok
10310, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ongkoon Yooman |
[-] |
Thai |
71 |
|
Mr. Hans Jorgen Ibsen
Nielsen |
[x] |
Danish |
62 |
|
Mr. Harnrith Hansen |
[x] |
Thai |
65 |
|
Mr. Adisorn Prakunahangsit |
|
Thai |
71 |
|
Mr. Chit Kiatsunthorn |
|
Thai |
68 |
|
Mr. Richard Peter Neville |
|
American |
- |
|
Mr. Per Meijnert Kristensen |
|
Danish |
44 |
|
Mr. Poul Pedersen |
|
Danish |
- |
|
Mr. Vichai Tantikulananta |
|
Thai |
- |
AUTHORIZED PERSON
Both of the
above directors [x] can jointly
sign or one
of the directors
[x] can jointly
sign with the
director [-] on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Hans Jorgen Ibsen
Nielsen is the
Managing Director.
He is Danish
nationality with the
age of 62
years old.
Mr. Kitirach Taechamongkol is
the DMD, Design &
Products Development.
He is Thai
nationality.
Mrs. Kingkaew Wannaratt is the
DMD Finance & Accounting.
She is Thai
nationality.
Mr. Sanya Amornreatwat is the
DMD Marketing &
Project Execution.
He is Thai
nationality.
Mr. Punya Kritiyawong is
the DMD, Marketing
and Business Development.
He is Thai
nationality.
Ms. Samurkwan Atipornsilawat is
the Assistant MD,
Finance & Accounting
and Finacial Controller.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject
is engaged in
supplying and provide
servicing, included design
and develope technology
and engineering, as
well as production
and installation of
equipment which can
be categorized into
4 main types
as follow:
·
Technology
improvement for vertical
roller mill
·
Technology
improvement for cement
mill/ball mill
·
Technology
improvement for Rotary
kiln
·
Efficiency
improvement for cement
production process
PURCHASE
100% of engineering
equipment and components are purchased
from local suppliers.
SALES/SERVICES
The products
and services are
supplied to customers,
mainly in cement,
energy and mining
industries both local
and overseas, such
as India, Argentina,
UAE, Saudi Arabia,
Brazil, Vietnam, Republic of China,
Malaysia, Philippines, Pakistan,
Iran, Taiwan, Middle
East and etc.
STRUCTURE OF
THE REVENUE
|
Type of
service |
2009 [M. Bht.] |
2008 [M.
Bht.] |
|
|
|
|
|
Revenue from service
agreements |
1,542.99 |
1,370.61 |
|
Revenue from technical
consultancy fee paid
by F/L Smidth |
4.21 |
6.38 |
|
Revenue
from technical consultancy
fees paid by
LNV |
0.22 |
0.09 |
|
Total
revenues from service
agreements |
1,547.42 |
1,378.44 |
|
Revenues
from other sources |
106.93 |
182.50 |
|
Total |
1,654.35 |
1,560.94 |
SUBSIDIARY AND
AFFILIATED COMPANIES
L. V. Europe S.A.
Business Type :
Provides engineering service
in
L. V. Technology Engineering
Co., Ltd.
Business Type : Provides
engineering service in
Republic of China.
L N V Technology Private
Ltd.
Business Type : Provides
engineering service in
BLVT LLC
Business Type : Provides
engineering service in
LV Latino America
Equipmentos Industrials Limited
Company
Business Type : Provides
engineering service in
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
Bangkok Bank Public
Co., Ltd.
The Siam Commercial
Bank Public Co.,
Ltd.
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
approximately 140 staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
1,000,000.
COMMENT
Amidst
the economic recession
in 2009-2010, following
the world financial
crisis, the subject
has witnessed a
significant decline in the
expansion of businesses
and industries.
As well
the market of
overall industrial sector
has been slowing
down more than
earlier forecast, which
has affected company
sales target in
both domestic and overseas
markets. Therefore, sales and
services condition are
tough, and growth
has experienced slowdown in
the large area
of industrial expansion.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 325,000,000 divided into
325,000,000 shares of
Bht. 1 each.
In
2009 the registered
capital was increased
to Bht. 490,555,981
divided into 490,555,981
shares of Bht. 1
each.
MAIN SHAREHOLDERS
[as at
May 7, 2010]
at Bht. 375,035,254
of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Danske Bank A/S Nationality: Dutch Address : |
42,949,600 |
11.47 |
|
MPA Co., Ltd. Nationality: Thai Address :
Thungsonghong, Laksi, |
30,924,650 |
8.26 |
|
Thai NVDR Co.,
Ltd. Nationality: Thai Address : - |
30,579,352 |
8.17 |
|
Mr. Hans Jorgen Ibsen
Nielsen Nationality: Danish Address : 719
Rama 9 Rd.,
Bangkapi,
Huaykwang, |
28,213,102 |
7.53 |
|
Chase Nominees Limited Nationality: -i Address : - |
10,000,000 |
2.67 |
|
Mr. Harnrith Hansen Nationality: Thai Address : 117/8
Chaengwattana 10 Rd.,
Laksi, |
6,073,200 |
1.62 |
|
HSBC [ Nationality: Singaporean Address : - |
5,879,400 |
1.57 |
|
Others |
220,415,950 |
58.71 |
Total Shareholders :
2,366
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Prasit Tuengsrikul No.
4174
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash
Equivalents |
51,307,001 |
64,995,491 |
|
Trade Accts. Receivable |
160,625,633 |
164,435,071 |
|
Short Term Loan
to Subsidiaries |
21,786,777 |
23,738,211 |
|
Due from Customers on Project
Contracts |
479,194,857 |
367,761,436 |
|
Work in Process |
4,158,777 |
- |
|
Prepaid Equipment |
139,375,216 |
103,314,646 |
|
Other Current Assets
|
27,422,963 |
14,948,849 |
|
Total Current Assets
|
883,871,224 |
739,193,704 |
|
Deposits at Financial Institutions - Restricted for
Pledge |
199,500,710 |
225,011,361 |
|
Investments in Subsidiaries |
498,500 |
- |
|
Investments in Associates
and Jointly-controlled Entity
|
6,076,277 |
6,076,277 |
|
Fixed Assets |
6,253,970 |
7,676,925 |
|
Intangible Assets |
13,369,996 |
4,550,669 |
|
Other Non-current Assets |
1,662,375 |
1,535,225 |
|
Total Assets |
1,111,233,052 |
984,044,161 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2010 |
2009 |
|
|
|
|
|
Short Term Loan
from Financial Institution |
36,241,553 |
17,827,435 |
|
Trade Accts. Payable- Related Parties |
15,635,661 |
11,013,041 |
|
Trade Accts. Payable- Others |
36,624,548 |
74,181,528 |
|
Due to Customers
on Project Contracts |
297,022,594 |
129,564,567 |
|
Accrued Equipment Cost |
303,679,742 |
73,409,568 |
|
Accrued Commission Expenses |
17,785,758 |
18,159,044 |
|
Provision for Warranty Expenses |
32,107,850 |
8,398,988 |
|
Accrued Income Tax |
- |
4,028,604 |
|
Other Current Liabilities |
46,856,889 |
34,647,304 |
|
Total Current Liabilities |
785,954,595 |
371,230,079 |
|
Excess Loss on
Carrying Value of
Investment |
27,599,140 |
30,859,307 |
|
Total Liabilities |
813,553,735 |
402,089,386 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
Share Capital Authorized Share
Capital |
490,555,981 |
490,555,981 |
|
Issued and Paid-up
Share Capital |
375,035,254 |
321,870,654 |
|
Premium on Share Capital |
120,748,784 |
97,385,883 |
|
Retained Earning [deficits] Appropriated- Statutory Reserve |
13,323,000 |
13,323,000 |
|
Unappropriated |
[211,427,721] |
149,375,238 |
|
Total Shareholders’ Equity |
297,679,317 |
581,954,775 |
|
Total Liabilities & Shareholders’ Equity |
1,111,233,052 |
984,044,161 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Contract revenues |
782,554,600 |
1,554,369,308 |
|
Other |
13,677,359 |
81,618,244 |
|
|
796,231,959 |
1,635,987,552 |
|
Expenses |
|
|
|
|
|
|
|
Contract Cost |
752,778,544 |
1,255,675,052 |
|
Selling Expenses |
42,720,655 |
83,866,105 |
|
Administrative Expenses |
204,899,381 |
122,637,187 |
|
Directors and Management
Remuneration |
21,789,975 |
|
|
Loss on Exchange
Rate |
51,728,573 |
23,610,781 |
|
|
|
|
|
Total Expenses |
1,073,917,128 |
1,485,789,125 |
|
Profit Before Financial
Cost & Income
Tax |
[277,685,169] |
150,198,427 |
|
Financial Cost |
[388,106] |
[1,763,881] |
|
Profit Before Tax |
[278,073,275] |
148,434,546 |
|
Income Tax |
[396,960] |
[28,854,686] |
|
Net Profit / [Loss] |
[278,470,235] |
119,579,860 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.12 |
1.99 |
|
QUICK RATIO |
TIMES |
0.91 |
1.67 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
125.13 |
202.47 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.70 |
1.58 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
2.02 |
- |
|
INVENTORY TURNOVER |
TIMES |
181.01 |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
74.92 |
38.61 |
|
RECEIVABLES TURNOVER |
TIMES |
4.87 |
9.45 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
17.76 |
21.56 |
|
CASH CONVERSION CYCLE |
DAYS |
59.18 |
17.05 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
96.20 |
80.78 |
|
SELLING & ADMINISTRATION |
% |
31.64 |
13.29 |
|
INTEREST |
% |
0.05 |
0.11 |
|
GROSS PROFIT MARGIN |
% |
5.55 |
24.47 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(35.48) |
9.66 |
|
NET PROFIT MARGIN |
% |
(35.58) |
7.69 |
|
RETURN ON EQUITY |
% |
(93.55) |
20.55 |
|
RETURN ON ASSET |
% |
(25.06) |
12.15 |
|
EARNING PER SHARE |
BAHT |
(74.25) |
37.15 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.73 |
0.41 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.73 |
0.69 |
|
TIME INTEREST EARNED |
TIMES |
(715.49) |
85.15 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(49.65) |
|
|
OPERATING PROFIT |
% |
(284.88) |
|
|
NET PROFIT |
% |
(332.87) |
|
|
FIXED ASSETS |
% |
(18.54) |
|
|
TOTAL ASSETS |
% |
12.93 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
5.55 |
Deteriorated |
Industrial Average |
33.23 |
|
Net Profit Margin |
(35.58) |
Deteriorated |
Industrial Average |
(8.48) |
|
Return on Assets |
(25.06) |
Deteriorated |
Industrial Average |
(2.17) |
|
Return on Equity |
(93.55) |
Deteriorated |
Industrial Average |
(0.92) |
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 5.55%. When
compared with the industry average, the ratio of the company was lower.
indicated that company was originated from the 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 -35.58%.
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, its was lower, the company's figure is -25.06%.
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, its was lower, the company's figure is -93.55%.
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 |
1.12 |
Deteriorated |
Industrial Average |
19.93 |
|
Quick Ratio |
0.91 |
|
|
|
|
Cash Conversion Cycle |
59.18 |
|
|
|
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 1.12 times in 2010, decrease from 1.99 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 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 0.91 times in 2010,
decrease from 1.67 times, by excluding inventory, the company may have problems
meeting current liabilities.
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 60 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.73 |
Impressive |
Industrial Average |
0.82 |
|
Debt to Equity Ratio |
2.73 |
Risky |
Industrial Average |
0.80 |
|
Times Interest Earned |
(715.49) |
Risky |
Industrial Average |
49.12 |
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
stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is -715.49 lower than 1, so the company is not generating
enough cash from its operations 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 0.73 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 Uptrend
Times Interest Earned Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
125.13 |
Impressive |
Industrial Average |
48.61 |
|
Total Assets Turnover |
0.70 |
Acceptable |
Industrial Average |
1.25 |
|
Inventory Conversion Period |
2.02 |
|
|
|
|
Inventory Turnover |
181.01 |
Impressive |
Industrial Average |
43.56 |
|
Receivables Conversion Period |
74.92 |
|
|
|
|
Receivables Turnover |
4.87 |
Deteriorated |
Industrial Average |
14.48 |
|
Payables Conversion Period |
17.76 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.96 |
|
|
1 |
Rs.73.56 |
|
Euro |
1 |
Rs.63.68 |
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.