MIRA INFORM REPORT
|
Report Date : |
28.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
THE
THAI SILK INDUSTRIES
LIMITED |
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|
|
|
Registered Office : |
24 Sukhumvit 13 Road, Klongtoeynua, Wattana, Bangkok 10110 |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
18.05.2001 |
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Com. Reg. No.: |
0105544046408 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Exporter and distributor of fabrics |
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No. of Employees : |
20 |
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 |
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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, 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
THE THAI
SILK INDUSTRIES LIMITED
SUMMARY
BUSINESS
ADDRESS : 24
SUKHUMVIT 13 ROAD,
KLONGTOEYNUA, WATTANA,
BANGKOK 10110,
THAILAND
TELEPHONE : [66] 2255-7380-1
FAX :
[66] 2255-7389
E-MAIL
ADDRESS : operation@thaisilk.co.th
export@thaisilk.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2001
REGISTRATION
NO. : 0105544046408 [Former : [5]
848/2544]
TAX
ID NO. : -
CAPITAL REGISTERED : BHT. 9,000,000
CAPITAL PAID-UP : BHT.
9,000,000
SHAREHOLDER’S PROPORTION : THAI
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
VISANT SINGHSAJJADESH, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 20
LINES
OF BUSINESS : FABRICS
EXPORTER AND
DISTRIBUTOR
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 May 18, 2001
as a private
limited company under
the name style THE THAI SILK INDUSTRIES
LIMITED by Thai-Indian group, Singhsajjadesh
family, to supply product and
service of Thai silk and other fabrics to
both domestic and
international markets. It
currently employs approximate 20 staff.
The
subject’s registered address
was initially located at 37 Soi
Chaiyos, Sukhumvit 11 Rd., Klongtoeynua,
Wattana, Bangkok 10110.
On
June 25, 2010,
it was relocated to
24 Sukhumvit 13
Rd., Klongtoeynua, Wattana,
Bangkok 10110, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Visant Singhsajjadesh |
|
Thai |
59 |
|
Mr. Visith Singhsajjadesh |
|
Thai |
56 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Visant Singhsajjadesh is
the Managing Director.
He is Thai
nationality with the
age of 59
years old.
BUSINESS OPERATIONS
The
subject’s main activity is
an exporter of
Thai silks and
other fabrics, such
as cotton, linen,
printed fabric, home
decorative fabric and
etc.
The subject is also an importer
and distributor various kinds of
fabrics: silk, linen,
cotton and etc., depending on
customer’s order.
PURCHASE
80% of
the products is
purchased from local
suppliers, and the
remaining 20% is
imported from France,
Japan, India, Republic
of China and
Hong Kong.
DISTRIBUTION
Most of
the products are
exported to India,
Hong Kong, Indonesia, Singapore,
Brunei, Vietnam, Philippines, France, United Kingdom, Italy, Germany,
Switzerland, Netherlands, Belgium, and
the rest is
sold locally to
wholesalers.
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 on negotiated
term.
Exports
are against T/T
on negotiated term.
BUSINESS
TRANSACTION
The
products are sold
mainly by credit,
with maximum credit given
at 30-60 days.
The subject is
not found to
have problem on
its account receivable.
BANKING
Bangkok
Bank Public Co., Ltd.
EMPLOYMENT
The
subject employs approximately
20 staff [office and
sales staff].
LOCATION
DETAILS
The
premise is rented
for administrative office
and showroom at the
heading address. Premise
is located in
commercial/residential area.
Branches:
-
36/13
Vibhavadi Rangsit Rd.,
Donmuang, Bangkok 10210.
-
1st
Floor, Peninsula Plaza,
Room 126-127, 153
Rajdamri Rd., Lumpini,
Pathumwan, Bangkok 10330.
COMMENT
The subject was
formed in 2001
as a distributor and
exporter of fabrics.
The products have
been supplied locally
to manufacture and
wholesalers, while the most
of the products
are exported to
overseas customers. Subject
reported slow sales
sale in 2011
compared to 91 million
baht in the
previous year. Sales
were slowed down
in 2011 due to sluggish
economic in EU market.
However, since the
beginning of 2012,
sale has gradually improved.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht.
1,000,000 divided into
10,000 shares of
Bht. 100 each.
The
capital was increased
later as follows:
Bht. 3,000,000
on July 26,
2001
Bht. 3,600,000
on December 7,
2001
Bht. 5,000,000 on February
6, 2006
Bht. 7,000,000
on December 28,
2009
Bht. 9,000,000
on December 28,
2011
The
latest registered capital
was increased to
Bht. 9,000,000 divided
into 90,000 shares
of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Visant Singhsajjadesh Nationality: Thai Address : 21
Sukhumvit 13, Klongtoeynua, Wattana,
Bangkok 10110 |
32,500 |
36.11 |
|
Mr. Visith Singhsajjadesh Nationality: Thai Address : 26 Sukhumvit 13, Klongtoeynua, Wattana,
Bangkok 10110 |
32,500 |
36.11 |
|
Mr. Naris Singhsajjadesh Nationality: Thai Address : 26 Sukhumvit 13,
Klongtoeynua, Wattana,
Bangkok 10110 |
25,000 |
27.78 |
Total Shareholders : 3
Share
Structure [as at
April 30, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
90,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
90,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Nopharerk Pisanuwong
No. 7764
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
27,367.31 |
32,662.43 |
|
Trade Accounts Receivable |
17,470,369.56 |
7,501,061.30 |
|
Inventories |
19,790,394.46 |
20,797,013.70 |
|
Other Current Assets
|
74,017.47 |
2,329,680.77 |
|
Total Current Assets
|
37,362,148.80 |
30,660,418.20 |
|
|
|
|
|
Real Estate for Investment |
54,437,481.46 |
54,500,200.67 |
|
Equipment |
2,119,288.57 |
1,351,954.27 |
|
Cash at Bank
pledged as a
Collateral |
138,969.65 |
136,731.11 |
|
Other Non-current Assets |
287,309.00 |
184,800.00 |
|
Total Assets |
94,345,197.48 |
86,834,104.25 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Bank Overdraft &
Short-term Loan from
Financial Institution |
29,295,925.98 |
21,585,992.96 |
|
Trade Accounts & Other
Payable |
12,673,625.67 |
19,436,660.06 |
|
Current Portion of Long-term
Liabilities |
3,605,185.46 |
3,243,751.82 |
|
Short-term Loans from
Related Person |
4,231,172.74 |
72,568.78 |
|
Short-term Loans from Other
Company |
1,040,000.00 |
- |
|
Accrued Expenses |
4,225,290.42 |
3,527,528.67 |
|
Total Current Liabilities |
55,071,200.27 |
47,866,502.29 |
|
|
|
|
|
Financial Lease Contract
Liabilities |
797,313.21 |
- |
|
Long-term Loan |
28,118,509.78 |
31,573,726.95 |
|
Total Liabilities |
83,987,023.26 |
79,440,229.24 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 90,000 &
70,000 shares in 2011 & 2010 respectively |
9,000,000.00 |
7,000,000.00 |
|
Capital Paid |
9,000,000.00 |
7,000,000.00 |
|
Retained Earning -
Unappropriated |
1,358,174.22 |
393,875.01 |
|
Total Shareholders' Equity |
10,358,174.22 |
7,393,875.01 |
|
Total Liabilities & Shareholders' Equity |
94,345,197.48 |
86,834,104.25 |
PROFIT & LOSS ACCOUNT
|
Sale |
2011 |
2010 |
|
|
|
|
|
Sales |
52,879,812.83 |
83,475,063.31 |
|
Rental & Services Income |
4,799,875.40 |
4,454,018.20 |
|
Other Income |
|
|
|
Gain on Exchange Rate |
920,877.82 |
3,028,128.54 |
|
Gain on Disposal of Assets |
280,371.83 |
- |
|
Other |
148,278.59 |
60,938.61 |
|
Total Sales |
59,029,216.47 |
91,018,148.66 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
31,548,715.64 |
55,866,808.80 |
|
Cost of Services |
3,713,509.92 |
3,972,635.33 |
|
Selling Expenses |
12,317,131.25 |
18,015,823.32 |
|
Administrative Expenses |
5,028,059.10 |
7,337,136.63 |
|
Loss on Exchange Rate |
1,090,056.86 |
960,093.95 |
|
Discount on Compensation from Damage |
- |
900,000.00 |
|
Total Expenses |
53,697,472.77 |
87,052,498.03 |
|
Profit / [Loss] before Finance Costs |
5,331,743.70 |
3,965,650.63 |
|
Finance Costs |
[4,328,849.37] |
[3,668,264.13] |
|
|
|
|
|
Profit / [Loss] before Income Tax |
1,002,894.33 |
297,386.50 |
|
Income Tax |
[38,595.12] |
- |
|
Net Profit / [Loss] |
964,299.21 |
297,386.50 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.68 |
0.64 |
|
QUICK RATIO |
TIMES |
0.32 |
0.16 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
24.95 |
61.74 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.56 |
0.96 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
204.85 |
126.85 |
|
INVENTORY TURNOVER |
TIMES |
1.78 |
2.88 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
120.59 |
32.80 |
|
RECEIVABLES TURNOVER |
TIMES |
3.03 |
11.13 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
131.18 |
118.56 |
|
CASH CONVERSION CYCLE |
DAYS |
194.25 |
41.10 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
66.68 |
71.69 |
|
SELLING & ADMINISTRATION |
% |
32.80 |
30.37 |
|
INTEREST |
% |
8.19 |
4.39 |
|
GROSS PROFIT MARGIN |
% |
44.95 |
37.35 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
10.08 |
4.75 |
|
NET PROFIT MARGIN |
% |
1.82 |
0.36 |
|
RETURN ON EQUITY |
% |
9.31 |
4.02 |
|
RETURN ON ASSET |
% |
1.02 |
0.34 |
|
EARNING PER SHARE |
BAHT |
10.71 |
4.25 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.89 |
0.91 |
|
DEBT TO EQUITY RATIO |
TIMES |
8.11 |
10.74 |
|
TIME INTEREST EARNED |
TIMES |
1.23 |
1.08 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(36.65) |
|
|
OPERATING PROFIT |
% |
34.45 |
|
|
NET PROFIT |
% |
224.26 |
|
|
FIXED ASSETS |
% |
56.76 |
|
|
TOTAL ASSETS |
% |
8.65 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
44.95 |
Impressive |
Industrial
Average |
11.62 |
|
Net Profit Margin |
1.82 |
Impressive |
Industrial
Average |
1.23 |
|
Return on Assets |
1.02 |
Deteriorated |
Industrial
Average |
2.12 |
|
Return on Equity |
9.31 |
Impressive |
Industrial
Average |
5.83 |
Gross Profit Margin used to assess a firm's financial health by revealing
the proportion of money left over from sales 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 44.95%. 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. The company’s figure is 1.82%,
higher figure when 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. When compared with the
industry average, it was lower, the company's figure is 1.02%.
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. Return on Equity ratio
is 9.31%, 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 Uptrend
Return on Equity Uptrend
LIQUIDITY RATIO
|
Current Ratio |
0.68 |
Risky |
Industrial
Average |
1.61 |
|
Quick Ratio |
0.32 |
|
|
|
|
Cash Conversion Cycle |
194.25 |
|
|
|
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 0.68 times in 2011, increased from 0.64 times, then the company may not be
efficiently using its current assets. 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 0.32 times in 2011, increased
from 0.16 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 195 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.89 |
Acceptable |
Industrial
Average |
0.63 |
|
Debt to Equity Ratio |
8.11 |
Risky |
Industrial
Average |
1.74 |
|
Times Interest Earned |
1.23 |
Acceptable |
Industrial
Average |
1.68 |
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 1.24 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 0.89 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 Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
24.95 |
Impressive |
Industrial
Average |
9.48 |
|
Total Assets Turnover |
0.56 |
Deteriorated |
Industrial
Average |
1.68 |
|
Inventory Conversion Period |
204.85 |
|
|
|
|
Inventory Turnover |
1.78 |
Deteriorated |
Industrial
Average |
4.77 |
|
Receivables Conversion Period |
120.59 |
|
|
|
|
Receivables Turnover |
3.03 |
Impressive |
Industrial
Average |
2.93 |
|
Payables Conversion Period |
131.18 |
|
|
|
Trend of the average
competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.41 |
|
UK Pound |
1 |
Rs.86.93 |
|
Euro |
1 |
Rs.68.10 |
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.