MIRA
INFORM REPORT
|
Report Date : |
27.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
FREETEX ELASTIC FABRIC FACTORY COMPANY LIMITED |
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Registered Office : |
622, |
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Country : |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
1983 |
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Com. Reg. No.: |
0105526014672 [Former: 1469/2526] |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Distributor and Exporter of
Innerwear Materials and Accessories. |
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No. of Employees : |
300 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company Name
FREETEX ELASTIC FABRIC FACTORY COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 622
LADYA ROAD, KLONGSAN,
BANGKOK
10600, THAILAND
TELEPHONE : [66] 2438-8079-80, 2437-9072, 2437-7064
FAX : [66] 2439-0604
E-MAIL ADDRESS : info@freetexelastic.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1983
REGISTRATION NO. : 0105526014672 [Former: 1469/2526]
CAPITAL REGISTERED : BHT. 240,000,000
CAPITAL PAID-UP : BHT.
240,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR. NARONG ORAWATTANASRIKUL, THAI
PRESIDENT
AND MANAGING DIRECTOR
NO.
OF STAFF : 300
LINES OF BUSINESS : INNERWEAR
MATERIALS AND ACCESSORIES
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 April
12, 1983 as
a private limited
company under the registered
name Freetex Elastic
Fabric Factory Company Limited by Thai
groups, with the business
objective to manufacture
and supply wide range of innerwear
and swimwear materials and
accessories to both domestic and international markets. It currently employs approximate 300
staff.
The subject’s
registered address is 622 Ladya
Road, Klongsan, Bangkok
10600, and this
is the same
subject’s current business
address.
THE BOARD OF DIRECTOR
|
Name |
Nationality |
Age |
|
|
|
|
|
Mr. Narong Orawattanasrikul |
Thai |
66 |
|
Ms. Pasiri Orawattanasrikul |
Thai |
37 |
|
Mr. Sirichai Orawattanasrikul |
Thai |
36 |
|
Mr. Kritsupoj Orawattanasrikul |
Thai |
30 |
|
Mr. Thanuphon Orawattanasrikul |
Thai |
30 |
|
Mrs. Kamollux Orawattanasrikul |
Thai |
61 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Narong Orawattanasrikul is
the President and
Managing Director.
He is Thai
nationality with the
age of 66
years old.
Ms. Pasiri Orawattanasrikul is
the Sales & Marketing Manager.
She is Thai
nationality with the
age of 37
years old.
Mr. Sirichai Orawattanasrikul is
the Organization Development
Director.
He is Thai
nationality with the
age of 36
years old.
Mr. Kritsupoj Orawattanasrikul is
the Product Development
Director.
He is Thai
nationality with the
age of 30
years old.
BUSINESS OPERATIONS
The subject’s activities are manufacturer and supplier wide range
of innerwear and
swimwear materials and
accessories, mainly elastic
webbings, ribbons, hook
and loop tapes. Range
of the products
are as follows:
·
Materials:
all kinds of
woven and knitted
elastic tapes, V-tapes,
shoulder straps, bra
wire tube, jacquard
elastics, elastic laces,
anti-runback elastic, medical
elastics and ribbons.
·
Accessories: bra hook & eye tapes, readymade shoulder straps,
ultrasonic embossed, hook
& eye tapes,
bow, ultrasonic welding and etc.
Colorful elastic, and high
quality ribbons in all
the colors of
the spectrum and
in a variety of
widths and textures
as well as
equipment; hook, the
materials which are
primarily used in
the production of
underwear and other
textiles.
MAJOR BRAND
“FREETEX”
PURCHASE
80% of its
raw materials and
accessories are purchased
from local suppliers,
and the remaining
20% is imported
from United Kingdom,
Japan, Republic of
China and Germany.
SALES [LOCAL]
70% of its products
is sold locally
by wholesale to
manufacturers and end-users.
EXPORT [COUNTRY]
30% of the
products is exported
to the United States of
America, France, Tunisia, United Kingdom,
Japan, Hong Kong,
Malaysia and Singapore.
MAJOR CUSTOMERS
Sabina Public Company
Limited : Thailand
Thai Wacoal Public
Company Limited :
Thailand
SUBSIDIARY AND AFFILIATED
COMPANY
The subject is
not found to
have any subsidiary
or 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.
Imports are by
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
Kasikornbank Public Co.,
Ltd. [Klongsan Branch]
Bangkok Bank Public
Co., Ltd. [Klongsan Branch]
EMPLOYMENT
The subject employs
approximately 300 staff.
[office staff and
factory workers]
LOCATION DETAILS
The premise is
owned for operating
administrative office in
a 3 storey
building of 1
row shophouse at the
heading
address. Premise is
located in residential/commercial area.
Factory & warehouse are
located at 153 Moo 5, Rama 2
Road, T. Thasai, A. Muang,
Samutsakorn
74000. Tel. : [66]
34 822-300-1, Fax:
[66] 34 462-613
Branch
office is located
at 944/34-5 Soi
Ladya 18, Ladya Rd.,
Klongsan, Bangkok 10600.
COMMENT
The high quality
materials for innerwear and
swimwear which are
produced by the
company are exported
around the world
including the United
States of America,
France and the
United Kingdom as
well as to
neighboring countries such as Malaysia and Singapore. The company
has enjoyed consistent
increased in earnings and
continuous expanding of the
business since it
began operating almost
three decades.
FINANCIAL INFORMATION
The capital was initially registered
at Bht. 1
million, divided into
100 shares of
Bht. 10,000 each.
The capital was increased later
as followings:
Bht. 3
million on July 1, 1985
Bht. 15
million on November
21, 1991
Bht. 50
million on December
19, 1995
Bht. 80
million on December
29, 1997
Bht. 95
million on June
9, 1999
Bht. 240
million on December
26, 2011
The latest registered
capital was increased
to Bht. 240
million, divided into
2,400,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
: [as
at December 16,
2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Narong Orawattanasrikul Nationality: Thai Address : 622
Ladya Rd., Klongsan,
Bangkok |
720,000 |
30.00 |
|
Mrs. Kamollux Orawattanasrikul Nationality: Thai Address : 622
Ladya Rd., Klongsan,
Bangkok |
720,000 |
30.00 |
|
Ms. Pasiri Orawattanasrikul Nationality: Thai Address : 622
Ladya Rd., Klongsan,
Bangkok |
240,000 |
10.00 |
|
Mr. Sirichai Orawattanasrikul Nationality: Thai Address : 622
Ladya Rd., Klongsan,
Bangkok |
240,000 |
10.00 |
|
Mr. Kritsupoj Orawattanasrikul Nationality: Thai Address : 622
Ladya Rd., Klongsan,
Bangkok |
240,000 |
10.00 |
|
Mr. Thanuphon Orawattanasrikul Nationality: Thai Address : 622
Ladya Rd., Klongsan,
Bangkok |
240,000 |
10.00 |
Total Shareholders : 6
Share Structure [as at
December 16, 2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
2,400,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
6 |
2,400,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Paisal Sriboonyong
No. 2969
Note.
The 2011 financial
statement was not
submitted to the
Commercial Registration Department
during the investigation.
BALANCE SHEET [BAHT]
The latest financial figures published for
December 31, 2010 & 2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalent |
1,096,393.05 |
7,342,653.26 |
|
Trade Accounts Receivable |
132,252,299.63 |
124,979,816.63 |
|
Inventories |
32,160,185.45 |
35,085,008.13 |
|
Other Current Assets |
5,275,245.70 |
10,390,711.40 |
|
|
|
|
|
Total Current Assets
|
170,784,123.89 |
177,798,189.42 |
|
|
|
|
|
Fixed Assets |
164,150,479.14 |
171,414,099.07 |
|
Other Assets |
7,616,043.92 |
9,188,143.47 |
|
Total Assets |
342,550,646.89 |
358,400,431.96 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft |
9,579,023.22 |
- |
|
Trade Accounts Payable |
87,436,104.63 |
68,518,308.64 |
|
Promissory Notes |
10,000,000.00 |
20,000,000.00 |
|
Current Portion of Long-term Loans |
1,782,120.00 |
1,782,120.00 |
|
Current Portion of Financial
Lease Contract Liabilities |
685,529.00 |
785,004.00 |
|
Other Current Liabilities |
33,393,587.06 |
23,215,762.81 |
|
|
|
|
|
Total Current Liabilities |
142,876,363.91 |
114,301,195.45 |
|
Long-term Loan from Person or Related Company |
51,340,000.00 |
97,240,000.00 |
|
Long-term Loan from Person or Other Company |
3,564,140.00 |
5,346,260.00 |
|
Long-term Lease Contract
Liabilities |
344,793.86 |
291,210.52 |
|
Total Liabilities |
198,125,297.77 |
217,178,665.97 |
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 950,000 shares |
95,000,000.00 |
95,000,000.00 |
|
|
|
|
|
Capital Paid |
95,000,000.00 |
95,000,000.00 |
|
Retained Earning Unappropriated |
49,425,349.12 |
46,221,765.99 |
|
Total Shareholders' Equity |
144,425,349.12 |
141,221,765.99 |
|
Total Liabilities & Shareholders' Equity |
342,550,646.89 |
358,400,431.96 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales Income |
479,445,109.31 |
409,447,773.43 |
|
Other Income |
980,231.02 |
2,116,325.03 |
|
Total Revenues |
480,425,340.33 |
411,564,098.46 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
431,148,877.82 |
360,481,261.80 |
|
Selling Expenses |
23,068,007.59 |
25,600,043.05 |
|
Administrative Expenses |
19,845,059.49 |
13,958,309.37 |
|
Total Expenses |
474,061,944.90 |
400,039,614.22 |
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income Tax |
6,363,395.43 |
11,524,484.24 |
|
Financial Cost |
[810,348.41] |
[4,376,294.53] |
|
Profit / [Loss] before Income
Tax |
5,553,047.02 |
7,148,189.71 |
|
Income Tax |
[2,349,463.89] |
[2,162,683.18] |
|
|
|
|
|
Net Profit / [Loss] |
3,203,583.13 |
4,985,506.53 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.20 |
1.56 |
|
QUICK RATIO |
TIMES |
0.93 |
1.16 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.92 |
2.39 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.40 |
1.14 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
27.23 |
35.52 |
|
INVENTORY TURNOVER |
TIMES |
13.41 |
10.27 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
100.68 |
111.41 |
|
RECEIVABLES TURNOVER |
TIMES |
3.63 |
3.28 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
74.02 |
69.38 |
|
CASH CONVERSION CYCLE |
DAYS |
53.89 |
77.56 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
89.93 |
88.04 |
|
SELLING & ADMINISTRATION |
% |
8.95 |
9.66 |
|
INTEREST |
% |
0.17 |
1.07 |
|
GROSS PROFIT MARGIN |
% |
10.28 |
12.48 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.33 |
2.81 |
|
NET PROFIT MARGIN |
% |
0.67 |
1.22 |
|
RETURN ON EQUITY |
% |
2.22 |
3.53 |
|
RETURN ON ASSET |
% |
0.94 |
1.39 |
|
EARNING PER SHARE |
BAHT |
3.37 |
5.25 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.58 |
0.61 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.37 |
1.54 |
|
TIME INTEREST EARNED |
TIMES |
7.85 |
2.63 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
17.10 |
|
|
OPERATING PROFIT |
% |
(44.78) |
|
|
NET PROFIT |
% |
(35.74) |
|
|
FIXED ASSETS |
% |
(4.24) |
|
|
TOTAL ASSETS |
% |
(4.42) |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
10.28 |
Satisfactory |
Industrial
Average |
11.95 |
|
Net Profit Margin |
0.67 |
Deteriorated |
Industrial
Average |
3.83 |
|
Return on Assets |
0.94 |
Deteriorated |
Industrial Average |
6.53 |
|
Return on Equity |
2.22 |
Deteriorated |
Industrial
Average |
12.82 |
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 10.28%. When
compared with the industry average, the ratio of the company was lower,
indicated that company was originated from the
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 0.67%.
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 0.94%.
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 2.22%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY RATIO
|
Current Ratio |
1.20 |
Acceptable |
Industrial
Average |
1.69 |
|
Quick Ratio |
0.93 |
|
|
|
|
Cash Conversion Cycle |
53.89 |
|
|
|
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 1.2 times in 2010, decreased from 1.56 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 0.93 times in 2010,
decreased from 1.16 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 54 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.58 |
Acceptable |
Industrial
Average |
0.44 |
|
Debt to Equity Ratio |
1.37 |
Risky |
Industrial
Average |
0.89 |
|
Times Interest Earned |
7.85 |
Impressive |
Industrial
Average |
7.82 |
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 7.86 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 0.58 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 Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.92 |
Satisfactory |
Industrial
Average |
3.81 |
|
Total Assets Turnover |
1.40 |
Satisfactory |
Industrial
Average |
1.71 |
|
Inventory Conversion Period |
27.23 |
|
|
|
|
Inventory Turnover |
13.41 |
Impressive |
Industrial
Average |
7.81 |
|
Receivables Conversion Period |
100.68 |
|
|
|
|
Receivables Turnover |
3.63 |
Acceptable |
Industrial
Average |
6.54 |
|
Payables Conversion Period |
74.02 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.57 |
|
|
1 |
Rs.85.03 |
|
Euro |
1 |
Rs.69.56 |
INFORMATION DETAILS
|
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.