MIRA
INFORM REPORT
|
Report Date : |
02.07.2012 |
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) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
13.08.1996 |
|
|
|
|
Com. Reg. No.: |
0107546000211 |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
Engineering Service
Provider |
|
|
|
|
No. of Employees : |
183 |
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 : |
Slow |
|
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, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Thailand |
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,
BANGKOK
10310, THAILAND
TELEPHONE : [66] 2717-0835-40,
2717-0847-9
FAX :
[66] 2717-0841,
2717-0577
E-MAIL
ADDRESS : mkt@lv-technology.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1996
REGISTRATION
NO. : 0107546000211 [Former : 0105539088891]
TAX
ID NO. : 3011751671
CAPITAL REGISTERED : BHT. 584,328,044
CAPITAL PAID-UP : BHT.
518,538,524
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. HANS JORGEN
IBSEN NIELSEN, DANISH
MANAGING DIRECTOR
NO.
OF STAFF : 183
LINES
OF BUSINESS : ENGINEERING SERVICE
PROVIDER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
LOW PERFORMANCE
HISTORY
The
subject was originally
established on August 13,
1996 as a
private limited company under
the registered name “L.V. Technology
Co., Ltd.” by
Thai and Danish
groups, with the
business objective to
provide engineering service,
specially in the
field of cement
industry. On August
4, 2003, its
status was converted
to public limited company under
the name L.V.
TECHNOLOGY PUBLIC COMPANY
LIMITED, and it
was 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 183 staff.
LVT also established their
owned subsidiaries in
India, Republic of China, France,
U.S.A., and Brazil,
to provide all
basic engineering design
services.
The subject’s registered address is 9th,
23rd, 24th Flr., Zone
C-D, K.P.N. Tower, 719 Rama 9
Rd., Bangkapi, Huaykwang, Bangkok
10310, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Hans Jorgen Ibsen
Nielsen |
[x] |
Danish |
63 |
|
Mr. Poul Pedersen |
|
Danish |
75 |
|
Mr. Vichai Tantikulananta |
|
Thai |
71 |
|
Mr. Thanik Siriwattanaprayoon |
[x] |
Thai |
71 |
|
Gen. Somchai Somprasong |
|
Thai |
72 |
|
Mr. Varun Chaudhary |
|
Nepalese |
26 |
|
Mr. Gancanapol Van Compernolle |
|
Thai |
31 |
|
Mr. Thamnu Vasinonta |
|
Thai |
71 |
AUTHORIZED PERSON
Both of the
above directors [x] can jointly
sign 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 63 years
old.
Mr. Kitirach Taechamongkol is
the Deputy Managing
Director [Plant Engineering].
He is Thai
nationality.
Mr. Worayuth Termsricharoenporn is the
Deputy Managing Director
[Finance].
He is Thai
nationality.
Ms. Pavichaya Udomratchaikul is the
Deputy Managing Director
[Project Management].
She is Thai
nationality.
Mr. Punya Kritiyawong is
the Deputy Managing
Director [Marketing].
He is Thai
nationality.
BUSINESS OPERATIONS
The subject
is engaged in
supplying and provide
servicing of design
and develop technology and
engineering, specialized in the field
of cement, energy
and mining industry,
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
plant production process
Presently, LVT can
provide services to
the existing cement
plants with more
than 900 contracts
in more than
95 countries.
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.
REVENUE STRUCTURE
[Unit
: Million Baht]
|
Type of
service |
2011 |
2010 |
||
|
|
Amount |
% |
Amount |
% |
|
|
|
|
|
|
|
Revenue from service
agreements |
2,949.54 |
95.24 |
782.60 |
94.83 |
|
Revenue from other
sources |
141.72 |
4.58 |
42.66 |
5.17 |
|
|
|
|
|
|
|
Total Revenue |
3,091.26 |
100.00 |
825.26 |
100.00 |
SUBSIDIARY AND AFFILIATED
COMPANIES
L. V. Europe S.A.
Business Type :
Provides engineering service
in France.
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
India.
BLVT LLC
Business Type : Provides
engineering service in
U.S.A.
LV Latino America
Equipmentos Industrials Limited
Company
Business Type : Provides
engineering service in
Brazil.
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 & services 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.
Foreign services are
by T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
The Siam Commercial
Bank Public Co.,
Ltd.
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
183 staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
COMMENT
The
market of overall
industrial sector in
2011 has been
improvement which resulted
in an increase
of the subject’s
sales & service
revenues comparing to
the previous year.
Though
there was an
increase in sales and
service revenue in
2011 comparing to
the same period
of previous year,
but cost of
sales & service
as well as
selling expenses have also
risen significantly which
resulted in the
subject’s net loss
at the end
of year. The subject
expects the business outlook in
2012 would remain
but better performance
than in 2011.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 325,000,000 divided
into 325,000,000 shares
of Bht. 1
each.
The
capital was increased
later as follows:
Bht. 490,555,981
in 2009
Bht. 584,328,044
in 2011
The
latest registered capital was
increased to Bht.
584,328,044 divided into
584,328,044 shares of Bht. 1
each, with the
current capital paid-up
at Bht. 518,538,524.
MAIN
SHAREHOLDERS : [as
at March 29, 2012]
at Bht. 518,538,524
of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Hans Jorgen Ibsen
Nielsen Nationality: Danish Address : 719
Rama 9 Rd.,
Bangkapi,
Huaykwang, Bangkok |
44,500,169 |
8.59 |
|
Danske Bank A/S Nationality: Dutch Address : Silom
Rd., Silom, Bangrak,
Bangkok |
43,004,600 |
8.29 |
|
CG Cement Global
Pte. Ltd. Nationality: Singaporean Address : - |
42,508,825 |
8.20 |
|
Mr. Bamrung Sringan Nationality: Thai Address : - |
25,567,888 |
4.93 |
|
Thai NVDR Co.,
Ltd. Nationality: Thai Address : - |
16,654,554 |
3.21 |
|
Mrs. Umaporn Merprakone Nationality: Thai Address : - |
11,516,555 |
2.22 |
|
Mr. Prayuth Uawattana Nationality: Thai Address : - |
9,900,000 |
1.91 |
|
Chase Nominees Limited
43 [CMBLSA] Nationality: - Address : - |
8,263,444 |
1.59 |
|
Mr. Athisak Wongtrakul Nationality: Thai Address : - |
7,000,000 |
1.35 |
|
Ms. Juraiwan Rintapol Nationality: Thai Address : - |
6,250,000 |
1.21 |
|
Others |
303,372,489 |
58.50 |
Total Shareholders :
1,954
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT NO. :
Mr. Bunyarit Thanomcharoen No. 7900
BALANCE SHEET [BAHT]
The latest financial figures published for December 31, 2011 & 2010 were:
ASSETS
|
Current Assets |
2011 |
2010 [Adjusted] |
|
|
|
|
|
Cash and Cash
Equivalents |
107,289,058 |
51,307,001 |
|
Trade Accounts Receivable |
738,130,243 |
305,040,012 |
|
Construction Works under Project Contract |
1,639,346,688 |
338,939,255 |
|
Advance Money to Distributor |
58,855,140 |
77,675,686 |
|
Short-term Loan to
Subsidiaries |
24,013,262 |
21,786,777 |
|
Inventories |
24,121,026 |
61,699,530 |
|
Other Current Assets
|
30,264,446 |
27,422,963 |
|
|
|
|
|
Total Current Assets
|
2,622,019,863 |
883,871,224 |
|
Fixed Deposit at
Financial Institution
pledged as a
Collateral
|
377,926,301 |
199,500,710 |
|
Investment in Subsidiaries |
498,500 |
498,500 |
|
Investment in Jointly-controlled Entity
|
3,897 |
3,897 |
|
Investment in Associated
Company |
4,137,164 |
6,072,380 |
|
Fixed Assets |
5,232,470 |
6,253,970 |
|
Intangible Assets |
9,433,783 |
13,369,996 |
|
Other Assets |
1,753,604 |
1,662,375 |
|
Total Assets |
3,021,005,582 |
1,111,233,052 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 [Adjusted] |
|
|
|
|
|
Short-term Loan from
Financial Institution |
68,166,419 |
36,241,553 |
|
Short-term Loan from Related Company |
6,000,000 |
- |
|
Trade Accounts Payable |
293,575,797 |
52,260,209 |
|
Project Contract Payable |
780,935,480 |
297,022,594 |
|
Accrued Equipment Expenses |
1,239,235,247 |
303,679,742 |
|
Accrued Commission |
121,928,932 |
17,785,758 |
|
Estimated Liabilities from Project Loss |
62,394,806 |
33,688,940 |
|
Estimated Liabilities from Project Warranty |
10,139,913 |
32,107,850 |
|
Other Current Liabilities |
84,720,302 |
40,767,089 |
|
|
|
|
|
Total Current Liabilities |
2,667,096,896 |
813,553,735 |
|
Liabilities from Employee
Benefits |
13,748,614 |
- |
|
Total Liabilities |
2,680,845,510 |
813,553,735 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
Share Capital: Bht.
1 par value
Authorized Share
Capital 584,328,044 &
490,555,981 in
2011 & 2010
respectively |
584,328,044 |
490,555,981 |
|
|
|
|
|
Issued and Paid-up
Share Capital |
466,690,241 |
375,035,254 |
|
Premium on Share Capital |
179,248,828 |
120,748,784 |
|
Retained Earning [deficits] Appropriated- Statutory Reserve |
13,323,000 |
13,323,000 |
|
Unappropriated |
[319,101,997] |
[211,427,721] |
|
Total Shareholders’ Equity |
340,160,072 |
297,679,317 |
|
Total Liabilities & Shareholders’ Equity |
3,021,005,582 |
1,111,233,052 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 [Adjusted] |
|
|
|
|
|
Contract Income |
2,949,074,948 |
782,554,600 |
|
Gain on Exchange
Rate |
39,409,800 |
- |
|
Other Income |
45,642,394 |
13,677,359 |
|
|
3,034,127,142 |
796,231,959 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Contract |
2,789,807,197 |
752,778,544 |
|
Selling Expenses |
143,324,173 |
42,720,655 |
|
Administrative Expenses |
173,754,590 |
223,703,355 |
|
Directors and Management
Remuneration |
17,047,475 |
2,986,000 |
|
Loss on Exchange
Rate |
- |
51,728,573 |
|
|
|
|
|
Total Expenses |
3,123,933,435 |
1,073,917,127 |
|
|
|
|
|
Profit before Financial
Cost & Income
Tax |
[89,806,293] |
[277,685,168] |
|
Financial Cost |
[1,355,946] |
[388,107] |
|
Income Tax |
- |
[396,960] |
|
Net Profit / [Loss] |
[91,162,239] |
[278,470,235] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.98 |
1.09 |
|
QUICK RATIO |
TIMES |
0.96 |
0.98 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
563.61 |
125.13 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.98 |
0.70 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
3.16 |
29.92 |
|
INVENTORY TURNOVER |
TIMES |
115.66 |
12.20 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
91.36 |
142.28 |
|
RECEIVABLES TURNOVER |
TIMES |
4.00 |
2.57 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
38.41 |
25.34 |
|
CASH CONVERSION CYCLE |
DAYS |
56.10 |
146.85 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
94.60 |
96.20 |
|
SELLING & ADMINISTRATION |
% |
10.75 |
34.05 |
|
INTEREST |
% |
0.05 |
0.05 |
|
GROSS PROFIT MARGIN |
% |
8.28 |
5.55 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(3.05) |
(35.48) |
|
NET PROFIT MARGIN |
% |
(3.09) |
(35.58) |
|
RETURN ON EQUITY |
% |
(26.80) |
(93.55) |
|
RETURN ON ASSET |
% |
(3.02) |
(25.06) |
|
EARNING PER SHARE |
BAHT |
(19.53) |
(74.25) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.89 |
0.73 |
|
DEBT TO EQUITY RATIO |
TIMES |
7.88 |
2.73 |
|
TIME INTEREST EARNED |
TIMES |
(66.23) |
(715.49) |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
276.85 |
|
|
OPERATING PROFIT |
% |
(67.66) |
|
|
NET PROFIT |
% |
67.26 |
|
|
FIXED ASSETS |
% |
(16.33) |
|
|
TOTAL ASSETS |
% |
171.86 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.28 |
Deteriorated |
Industrial
Average |
26.42 |
|
Net Profit Margin |
(3.09) |
Deteriorated |
Industrial
Average |
1.22 |
|
Return on Assets |
(3.02) |
Deteriorated |
Industrial
Average |
0.79 |
|
Return on Equity |
(26.80) |
Deteriorated |
Industrial
Average |
1.02 |
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 8.28%. When compared with
the industry average, the ratio of the company was lower. This 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 -3.09%.
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 -3.02%.
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 -26.8%.
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 |
0.98 |
Risky |
Industrial
Average |
1.54 |
|
Quick Ratio |
0.96 |
|
|
|
|
Cash Conversion Cycle |
56.10 |
|
|
|
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 0.98 times in 2011, decrease from 1.09 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 0.96 times in 2011,
decrease from 0.98 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 57 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.89 |
Acceptable |
Industrial
Average |
0.51 |
|
Debt to Equity Ratio |
7.88 |
Risky |
Industrial
Average |
1.08 |
|
Times Interest Earned |
(66.23) |
Risky |
Industrial
Average |
2.08 |
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 -66.24 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 0.89 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 |
563.61 |
Impressive |
Industrial
Average |
2.82 |
|
Total Assets Turnover |
0.98 |
Satisfactory |
Industrial
Average |
1.01 |
|
Inventory Conversion Period |
3.16 |
|
|
|
|
Inventory Turnover |
115.66 |
Impressive |
Industrial
Average |
4.90 |
|
Receivables Conversion Period |
91.36 |
|
|
|
|
Receivables Turnover |
4.00 |
Impressive |
Industrial
Average |
2.63 |
|
Payables Conversion Period |
38.41 |
|
|
|
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.56.31 |
|
UK Pound |
1 |
Rs.88.06 |
|
Euro |
1 |
Rs.70.91 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.