MIRA
INFORM REPORT
|
Report Date : |
05.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
LUCKY SPINNING
CO., LTD. |
|
|
|
|
Registered Office : |
21st Floor,
Klongtoeynua, Wattana,
Bangkok 10110 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
2010 |
|
|
|
|
Date of Incorporation : |
2001 |
|
|
|
|
Com. Reg. No.: |
0105544066603 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Exporter
And Distributor Of Yarn Spinning |
|
|
|
|
No. of Employees : |
950 |
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 |
|
Status : |
Satisfactory |
|
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 – September 30, 2011
|
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
LUCKY SPINNING
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 21st FLOOR,
OCEAN TOWER 2,
75/38-39 SOI
WATTANA, SUKHUMVIT 19
ROAD,
KLONGTOEYNUA, WATTANA,
BANGKOK 10110
TELEPHONE : [66] 2646-7700
FAX
: [66] 2646-7711
E-MAIL
ADDRESS : mktg-spg@luckyspinning.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2001
REGISTRATION
NO. : 0105544066603
VAT
NO. : 3030312884
CAPITAL REGISTERED : BHT. 2,000,000,000
CAPITAL PAID-UP : BHT.
2,000,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. KAMOL PHICHITSINGH,
THAI
CHIEF EXECUTIVE
OFFICER AND
MANAGING DIRECTOR
NO.
OF STAFF : 950
LINES
OF BUSINESS : YARN
SPINNING
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on July 17,
2001 as a
private limited company under
the name style
LUCKY SPINNING CO.,
LTD., by Thai-Indian groups, with
the business objective
to operate yarn spinning
factory for fabric
and yarn industries,
with the promotional privilege granted
by the Board
of Investment [BOI].
It currently employs
approximately 950 staff.
The
subject is a
member of Lucky
Impex Group of
Companies, a large
multinational conglomerate
commenced operations back in
1940. With textiles
as its core
expertise, the group has
diversified into several
other business areas,
including plastics, real estate,
construction and property
management. The group comprises
seven companies as
the followings:
-
Lucky
Impex Limited Partnership
-
Lucky
Impex Textile Co., Ltd.
-
Lucky
Spinning Co., Ltd.
-
L.I.
Textile, Melbourne, Australia
-
Lucky
Plastics and Chemicals
Co., Ltd.
-
Hawaii
Tower Co., Ltd.
-
H.B. Villa
Co., Ltd.
The subject’s registered address is 21st
Flr., Ocean Tower 2, 75/38-39 Soi Wattana, Sukhumvit 19 Rd., Klongtoeynua,
Wattana, Bangkok 10110,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kamol Phichitsingh |
[x] |
Thai |
60 |
|
Mrs. Balyitgor Phichitsingh |
|
Thai |
53 |
|
Ms. Sukmitr Phichitsingh |
[x] |
Thai |
28 |
|
Mr. Santhit Phichitsingh |
[x] |
Thai |
26 |
AUTHORIZED PERSON
One of the
mentioned directors [x]
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Kamol Phichitsingh is
the Chief Executive
Officer & Managing Director.
He is Thai
nationality with the
age of 60
years old.
Mr. Santhit Phichitsingh is
the Assistant Managing
Director.
He is Thai
nationality with the
age of 26
years old.
Mr. Soma Sundaram is
the Chief Finance
Officer.
He is Indian
nationality.
Mr. Anshuman Gupta is
the Chief Marketing
Officer.
He is Indian
nationality.
Mr. Umesh Sharma is
the Export Manager.
He is Indian
nationality.
Mr. Adirek Puthongkaew is
the Human Resources
& Administration Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
wide range of
yarn products as
follows:
- Ring
Yarns: 100% rayon, 100% cotton, and
blended yarns
[cotton/polyester/rayon]
- Open
End Yarns: rayon
yarns and cotton
yarns
- Vortex
Yarns: 100% rayon
and blended yarns
[cotton/polyester/rayon]
- Specialty Yarns: denim yarns, core spandex yarns,
core filament yarns,
fancy yarns [including Slubs & MCMTs] , and
TFO doubled yarns
MAJOR BRANDS
“LOPIL”, “KRISPUN”, “CAYON”
PRODUCTION CAPACITY
3,200 tons per
month
FACILITIES
The subject has used
its renowned machinery and equipment for
the production, including
Trutzschler, Lakshmi, Rieter,
Schlafhorst, Savio, Volkman,
LTG, Uster and
Premier.
PURCHASE
Most of raw
materials and equipment
are purchased from
local suppliers and
agents, the remaining,
as well as
machinery and equipment
are imported from
Germany, Japan, Italy,
France, Republic of
China and Taiwan.
MAJOR SUPPLIER
Murata
Machinery Co., Ltd.
:
Japan
SALES
90% of the
products is exported
to approximate 40 countries
in Asia, Europe, Middle
East, Australia and
U.S.A., the remaining 10% is sold
and serviced locally
to wholesalers and
manufacturers.
MAJOR CUSTOMER
L.I.
Textile [Australia] Pty
Ltd. : Australia
RELATED AND AFFILIATED
COMPANIES
Lucky Impex Textile
Co., Ltd.
Business Type :
Distributor of textile
products.
Lucky Global Corporation
Co., Ltd.
Business Type :
Importer and distributor
of industrial chemicals
and plastic products.
H. B. Villa Co.,
Ltd.
Business Type :
Land development business.
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
according 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
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately
950 staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Factory
is located at
88 Moo 2,
T. Bangnamchiew, A.
Phromburi, Singburi 16120.
Tel.
: [66] 36 598-130-1, Fax. :
[66] 36 598-888.
Warehouse
is located at
47 Moo 2,
Asia Highway, T. Banmo,
A. Phromburi, Singburi 16120.
COMMENT
Since its
establishment, the subject has continuously developed
and improved its
operations. In response
to increasingly demand of
international textile markets,
the subject is
always in the
process of launching
and planning new
products for the
markets.
The
company is now
enjoying a strong
market position and
continuing to maintain
its status as
one of Thailand’s
leading manufacturers of
spun textiles. Its
business remains solid.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 40,000,000
divided into 4,000,000
shares of Bht.
10 each.
The
capital was increased
later as following:
Bht. 260,000,000 on
November 25, 2003
Bht. 600,000,000 on
October 20, 2005
Bht. 750,000,000 on
December 28, 2006
Bht. 1,350,000,000
on November 30,
2007
Bht 1,600,000,000 on
December 3, 2008
Bht. 2,000,000,000
on July 5,
2010
The
latest registered capital
was increased to Bht. 2,000
million, divided into
200 million shares
of Bht. 10
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE
[as
at July 14,
2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Kamol Phichitsingh Nationality: Thai Address : 80
Sukhumvit 23 Rd.,
Klongtoeynua,
Wattana, Bangkok |
110,000,000 |
55.00 |
|
Ms. Sukmitr Phichitsingh Nationality: Thai Address : 80
Sukhumvit 23 Rd.,
Klongtoeynua,
Wattana, Bangkok |
20,000,000 |
10.00 |
|
Mr. Santhit Phichitsingh Nationality: Thai Address : 80
Sukhumvit 23 Rd.,
Klongtoeynua,
Wattana, Bangkok |
20,000,000 |
10.00 |
|
Mr. Amorn Phichitsingh Nationality: Thai Address : 80
Sukhumvit 23 Rd.,
Klongtoeynua,
Wattana, Bangkok |
20,000,000 |
10.00 |
|
Mrs. Kiran Hora Nationality: Thai Address : 20/4
Sukhumvit 24 Rd.,
Klongtoey, Bangkok |
16,000,000 |
8.00 |
|
Mrs. Balyitgor Phichitsingh Nationality: Thai Address : 80
Sukhumvit 23 Rd.,
Klongtoeynua,
Wattana, Bangkok |
10,000,000 |
5.00 |
|
Mr. Zurayit Singh Hora Nationality: Thai Address : 20/4
Sukhumvit 24 Rd.,
Klongtoey, Bangkok |
4,000,000 |
2.00 |
Total Shareholders : 7
Share Structure [as
at July 14,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
200,000,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
200,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Lt. Chumsri Taweekiat No. 1626
Note
The 2011 financial
statement was not
submitted to the
Commercial Registration Department
during investigation.
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash in Hand
& at Bank
|
58,109,476.14 |
212,031,244.62 |
|
Short-term Investment |
400,000,000.00 |
200,000,000.00 |
|
Trade Accounts Receivable |
663,874,211.05 |
328,579,472.77 |
|
Other Receivable |
6,046,331.33 |
3,596,302.28 |
|
Short-term Loan to Person or
Related Company |
168,659,580.77 |
20,082,435.28 |
|
Inventories |
2,081,257,748.92 |
1,948,106,359.53 |
|
Other Current Assets
|
408,931,820.80 |
145,179,342.26 |
|
|
|
|
|
Total Current Assets
|
3,786,879,169.01 |
2,857,575,156.74 |
|
Other Long-term Investment |
6,838,712.87 |
6,759,009.90 |
|
Fixed Assets |
2,941,947,034.73 |
3,222,007,249.59 |
|
Other Assets |
161,026,297.04 |
152,857,500.56 |
|
Total Assets |
6,896,691,213.65 |
6,239,198,916.79 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
2,671,523,414.13 |
2,116,976,299.31 |
|
Trade Accounts Payable |
525,821,836.19 |
385,302,234.37 |
|
Current Portion of Long-term Loan |
347,347,277.80 |
157,979,241.80 |
|
Advance Income for
Capital Increase |
- |
140,000,000.00 |
|
Other Current Liabilities |
86,585,414.32 |
80,129,559.02 |
|
|
|
|
|
Total Current Liabilities |
3,631,277,942.44 |
2,880,387,334.50 |
|
Long-term Loan from
Person or Related
Company |
95,823,410.92 |
148,900,000.00 |
|
Long-term Loan from
Person or Other Company |
1,851,804,657.82 |
2,104,436,301.93 |
|
Other Liabilities |
5,202,988.61 |
7,663,418.45 |
|
Total Liabilities |
5,584,108,999.79 |
5,141,387,054.88 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid
share capital 200,000,000 & 160,000,000 shares in
2010 & 2009 respectively |
2,000,000,000.00 |
1,600,000,000.00 |
|
|
|
|
|
Capital Paid |
1,600,000,000.00 |
1,412,500,000.00 |
|
Retained Earning -
Unappropriated |
[287,417,786.14] |
[314,688,138.09] |
|
Total Shareholders' Equity |
1,312,582,213.86 |
1,097,811,861.91 |
|
Total Liabilities & Shareholders' Equity |
6,896,691,213.65 |
6,239,198,916.79 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales & Service
Income |
4,880,099,694.45 |
2,782,400,667.21 |
|
Other Income |
224,769,112.99 |
69,249,356.16 |
|
Total Revenues |
5,104,868,807.44 |
2,851,650,023.37 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Sales &
Service |
4,606,504,925.81 |
2,489,347,419.91 |
|
Selling Expenses |
185,396,388.43 |
108,538,375.74 |
|
Administrative Expenses |
63,733,701.38 |
60,179,698.02 |
|
Total Expenses |
4,855,635,015.62 |
2,658,065,493.67 |
|
|
|
|
|
Profit / [Loss] before Financial
Cost |
249,233,791.82 |
193,584,529.70 |
|
Financial Cost |
[222,206,817.60] |
[167,473,668.81] |
|
|
|
|
|
Net Profit / [Loss] |
27,026,974.22 |
26,110,860.89 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.04 |
0.99 |
|
QUICK RATIO |
TIMES |
0.36 |
0.27 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.66 |
0.86 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.71 |
0.45 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
164.91 |
285.64 |
|
INVENTORY TURNOVER |
TIMES |
2.21 |
1.28 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
49.65 |
43.10 |
|
RECEIVABLES TURNOVER |
TIMES |
7.35 |
8.47 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
41.66 |
56.49 |
|
CASH CONVERSION CYCLE |
DAYS |
172.90 |
272.25 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
94.39 |
89.47 |
|
SELLING & ADMINISTRATION |
% |
5.11 |
6.06 |
|
INTEREST |
% |
4.55 |
6.02 |
|
GROSS PROFIT MARGIN |
% |
10.21 |
13.02 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.11 |
102.49 |
|
NET PROFIT MARGIN |
% |
0.55 |
0.94 |
|
RETURN ON EQUITY |
% |
2.06 |
2.38 |
|
RETURN ON ASSET |
% |
0.39 |
0.42 |
|
EARNING PER SHARE |
BAHT |
0.17 |
0.18 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.81 |
0.82 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.25 |
4.68 |
|
TIME INTEREST EARNED |
TIMES |
1.12 |
17.03 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
75.39 |
|
|
OPERATING PROFIT |
% |
(91.26) |
|
|
NET PROFIT |
% |
3.51 |
|
|
FIXED ASSETS |
% |
(8.69) |
|
|
TOTAL ASSETS |
% |
10.54 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
10.21 |
Impressive |
Industrial Average |
8.66 |
|
Net Profit Margin |
0.55 |
Deteriorated |
Industrial
Average |
2.54 |
|
Return on Assets |
0.39 |
Deteriorated |
Industrial
Average |
2.85 |
|
Return on Equity |
2.06 |
Deteriorated |
Industrial
Average |
6.60 |
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 10.21%. 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. The company's figure is 0.55%.
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 0.39%.
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 2.06%.
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 |
1.04 |
Satisfactory |
Industrial
Average |
1.19 |
|
Quick Ratio |
0.36 |
|
|
|
|
Cash Conversion Cycle |
172.90 |
|
|
|
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 1.04 times in 2010, increased from 0.99 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 0.36 times in 2010,
increased from 0.27 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 173 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.81 |
Acceptable |
Industrial
Average |
0.53 |
|
Debt to Equity Ratio |
4.25 |
Risky |
Industrial
Average |
1.15 |
|
Times Interest Earned |
1.12 |
Deteriorated |
Industrial
Average |
3.05 |
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 1.13 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 0.81 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 |
1.66 |
Acceptable |
Industrial
Average |
2.22 |
|
Total Assets Turnover |
0.71 |
Acceptable |
Industrial
Average |
1.12 |
|
Inventory Conversion Period |
164.91 |
|
|
|
|
Inventory Turnover |
2.21 |
Acceptable |
Industrial
Average |
3.16 |
|
Receivables Conversion Period |
49.65 |
|
|
|
|
Receivables Turnover |
7.35 |
Impressive |
Industrial
Average |
5.68 |
|
Payables Conversion Period |
41.66 |
|
|
|
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.53.72 |
|
|
1 |
Rs.86.98 |
|
Euro |
1 |
Rs.70.64 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.