MIRA
INFORM REPORT
|
Report Date : |
07.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
ABSOLUTE DENIM CO., LTD. |
|
|
|
|
Registered Office : |
99 Soi Sukhumvit 6, Sukhumvit Road, Klongtoey, Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
18.02.2005 |
|
|
|
|
Com. Reg. No.: |
0105548025472 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor and Exporter of Textiles |
|
|
|
|
No. of Employees : |
400 |
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 : |
Slow but correct |
|
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
THAILAND - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise economy,
generally pro-investment policies, and strong export industries, Thailand
enjoyed solid growth from 2000 to 2007 - averaging more than 4% per year - as
it recovered from the Asian financial crisis of 1997-98. Thai exports - mostly
machinery and electronic components, agricultural commodities, and jewelry -
continue to drive the economy, accounting for more than half of GDP. The global
financial crisis of 2008-09 severely cut Thailand's exports, with most sectors
experiencing double-digit drops. In 2009, the economy contracted 2.3%. In 2010,
Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports
rebounded from their depressed 2009 level. Steady economic growth at just below
4% during the first three quarters of 2011 was interrupted by historic flooding
in October and November in the industrial areas north of Bangkok, crippling the
manufacturing sector and leading to a revised growth rate of only 0.1% for the
year. The industrial sector is poised to recover from the second quarter of
2012 onward, however, and the government anticipates the economy will probably
grow between 5.5 and 6.5% for 2012, while private sector forecasts range
between 3.8% and 5.7%.
Source : CIA
Company name
ABSOLUTE
DENIM CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 99
SOI SUKHUMVIT 6,
SUKHUMVIT ROAD,
KLONGTOEY, BANGKOK
10110
TELEPHONE : [66] 2255-4999,
2628-9119
FAX :
[66] 2207-9888,
2207-9444
E-MAIL
ADDRESS : info@absolutedenim.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2005
REGISTRATION
NO. : 0105548025472
TAX
ID NO. : 3031703315
CAPITAL REGISTERED : BHT. 1,350,000,000
CAPITAL PAID-UP : BHT.
1,350,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PORNPHROM PHROMVANICH, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 400
LINES
OF BUSINESS : TEXTILES
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
LOW PERFORMANCE
HISTORY
The
subject was established
on February 18,
2005 as a
private limited company
under the originally
registered name “G. Denim Co., Ltd.” by
Thai groups. On
April 12, 2005,
its registered name
was changed to “International Denim
Co., Ltd.”, and
finally changed to
ABSOLUTE DENIM CO., LTD.
on September 23,
2005. Its objective
is to be
engaged in providing
service of yarn
spinning, dyeing, weaving
and finishing for
denim production industry to
both domestic and
international markets. The
mill is integrated
with state-of-the-art machinery
from Switzerland, Germany
and Italy. It
currently employs approximate
400 staff.
The
subject’s registered address
is 99 Soi
Sukhumvit 6, Sukhumvit
Rd., Klongtoey, Bangkok
10110, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms. Chidaporn Phromvanich [Former : Ms. Mayura Narula] |
|
Thai |
32 |
|
Mr. Pornphrom Phromvanich |
|
Thai |
63 |
|
Mr. Vichai Phromvanich |
|
Thai |
27 |
|
Ms. Amritgor Narula |
|
Thai |
36 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Pornphrom Phromvanich is
the Managing Director.
He is Thai
nationality with the
age of 63
years old.
Ms. Chidaporn Phromvanich is
the General Manager.
She is Thai
nationality with the
age of 32
years old.
Mr. Vichai Phromvanich is
the Sales & Export Manager.
He is Thai
nationality with the
age of 27
years old.
BUSINESS OPERATIONS
The subject is
engaged in complete
range of textile business,
comprising spinning, dyeing,
weaving and finishing
for denim fabric.
PRODUCTION CAPACITY
2 million meters
per month
PURCHASE
Most
of cotton yarn
and other raw
materials are purchased
from local suppliers, the remaining is
imported from India, Japan,
Republic of China,
Italy, Switzerland and Germany.
SALES
80% of the products
is exported to Africa,
U.S.A., Republic of China,
Bangladesh, India, Vietnam,
Cambodia, Germany, Italy,
Spain, United Kingdom,
and the remaining
20% is sold
locally.
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
L/C or T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
400 staff.
LOCATION DETAILS
The
premise is owned
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Factory
and warehouse are
located on approximately
90,000 square meters
of building area,
at 99/9 Moo
8, T. Bangkachao,
A. Muang, Samutsakorn 74000.
Tel. [66]
34 869-181-2, Fax.
[66] 34 869-200.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$ 100,000.
COMMENT
The subject manufactures, distributes
and exports including
finishing of denim
textile. The products
have been served to garment
industry of both local and overseas. The subject’s sales in
2011 was considered
excellent with strong
sales in international
markets, while its
current business performance
remains brisk.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 500,000,000
divided into 500,000
shares of Bht. 1,000 each with
fully paid.
The
capital was increased
later as follows:
Bht. 800,000,000 on
May 10, 2006
Bht. 1,000,000,000
on January 15,
2007
Bht. 1,350,000,000
on February 4,
2009
The
latest registered capital
was increased to
Bht. 1,350 million, divided into
1,350,000 shares of
Bht. 1,000 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Vichai Phromvanich Nationality: Thai Address : 20/14
Sukhumvit 20 Rd.,
Klongtoey, Bangkok |
675,000 |
50.00 |
|
Mr. Pornphrom Phromvanich Nationality: Thai Address : 20/14
Sukhumvit 20 Rd.,
Klongtoey, Bangkok |
625,000 |
46.30 |
|
Ms. Amritgor Narula Nationality: Thai Address : 20/14
Sukhumvit 20 Rd.,
Klongtoey, Bangkok |
25,000 |
1.85 |
|
Ms. Chidaporn Phromvanich Nationality: Thai Address : 20/14
Sukhumvit 20 Rd.,
Klongtoey, Bangkok |
25,000 |
1.85 |
Total Shareholders : 4
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
1,350,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
4 |
1,350,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Prawes Puengpathomporn No.
5622
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 and
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalent |
6,026,221.48 |
483,457.57 |
|
Trade Accounts &
Notes Receivable |
182,341,010.14 |
280,975,418.03 |
|
Inventories |
508,376,258.29 |
396,584,961.00 |
|
Other Current Assets |
5,691,456.17 |
15,889,894.60 |
|
|
|
|
|
Total Current Assets
|
702,434,946.08 |
693,933,731.20 |
|
|
|
|
|
Fixed Assets |
2,605,624,549.94 |
2,704,765,269.89 |
|
Other Non-current Assets
|
6,626.20 |
6,626.20 |
|
Total Assets |
3,308,066,122.22 |
3,398,705,627.29 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Bank Overdraft & Payable from Financial Institution |
9,845,081.29 |
116,445,495.36 |
|
Short-term Loan from Financial
Institution |
156,299,972.12 |
116,552,531.23 |
|
Trade Accounts &
Other Payable |
149,073,740.93 |
128,864,930.09 |
|
Payable Trust Receipt |
689,583,853.15 |
525,731,742.35 |
|
Current Portion of
Long-term Loans |
119,300,000.00 |
220,800,000.00 |
|
Current Portion of Hire-purchase Payable |
1,480,672.69 |
1,662,988.79 |
|
Other Current Liabilities |
14,136,264.16 |
7,899,928.30 |
|
|
|
|
|
Total Current Liabilities |
1,139,719,584.34 |
1,117,957,616.12 |
|
Long-term Loan, net of Current Portion |
1,289,800,000.00 |
1,278,200,000.00 |
|
Long-term Loan from
Person or Related Company |
494,592,059.30 |
451,614,034.88 |
|
Hire-purchase Payable, net of
Current Portion |
239,209.28 |
1,727,669.88 |
|
Other Non-current Liabilities |
33,081,374.79 |
32,770,374.79 |
|
Total Liabilities |
2,957,432,227.71 |
2,882,269,695.67 |
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share capital
1,350,000 shares |
1,350,000,000.00 |
1,350,000,000.00 |
|
|
|
|
|
Capital Paid |
1,350,000,000.00 |
1,350,000,000.00 |
|
Retained Earning-
Unappropriated |
[999,366,105.49] |
[833,564,068.38] |
|
Total Shareholders' Equity |
350,633,894.51 |
516,435,931.62 |
|
Total Liabilities &
Shareholders' Equity |
3,308,066,122.22 |
3,398,705,627.29 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales Income |
1,533,447,398.16 |
1,066,468,272.82 |
|
Other Income |
172,859.64 |
4,008,602.49 |
|
Total Revenues |
1,533,620,257.80 |
1,070,476,875.31 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,453,145,987.37 |
1,088,137,263.96 |
|
Selling Expenses |
31,038,749.58 |
28,525,043.97 |
|
Administrative Expenses |
48,695,967.11 |
59,251,682.09 |
|
Other Expenses |
16,482,692.32 |
7,981,378.45 |
|
Total Expenses |
1,549,363,396.38 |
1,183,895,368.47 |
|
|
|
|
|
Loss
before Financial Cost |
[15,743,138.58] |
[113,418,493.16] |
|
Financial Cost |
[150,058,898.53] |
[120,807,358.62] |
|
|
|
|
|
Net Profit / [Loss] |
[165,802,037.11] |
[234,225,851.78] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.62 |
0.62 |
|
QUICK RATIO |
TIMES |
0.17 |
0.25 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.59 |
0.39 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.46 |
0.31 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
127.69 |
133.03 |
|
INVENTORY TURNOVER |
TIMES |
2.86 |
2.74 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
43.40 |
96.16 |
|
RECEIVABLES TURNOVER |
TIMES |
8.41 |
3.80 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
37.44 |
43.23 |
|
CASH CONVERSION CYCLE |
DAYS |
133.65 |
185.97 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
94.76 |
102.03 |
|
SELLING & ADMINISTRATION |
% |
5.20 |
8.23 |
|
INTEREST |
% |
9.79 |
11.33 |
|
GROSS PROFIT MARGIN |
% |
5.25 |
(1.66) |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(1.03) |
(10.63) |
|
NET PROFIT MARGIN |
% |
(10.81) |
(21.96) |
|
RETURN ON EQUITY |
% |
(47.29) |
(45.35) |
|
RETURN ON ASSET |
% |
(5.01) |
(6.89) |
|
EARNING PER SHARE |
BAHT |
(122.82) |
(173.50) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.89 |
0.85 |
|
DEBT TO EQUITY RATIO |
TIMES |
8.43 |
5.58 |
|
TIME INTEREST EARNED |
TIMES |
(0.10) |
(0.94) |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
43.79 |
|
|
OPERATING PROFIT |
% |
(86.12) |
|
|
NET PROFIT |
% |
29.21 |
|
|
FIXED ASSETS |
% |
(3.67) |
|
|
TOTAL ASSETS |
% |
(2.67) |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
5.25 |
Acceptable |
Industrial
Average |
7.78 |
|
Net Profit Margin |
(10.81) |
Deteriorated |
Industrial
Average |
0.29 |
|
Return on Assets |
(5.01) |
Deteriorated |
Industrial
Average |
0.83 |
|
Return on Equity |
(47.29) |
Deteriorated |
Industrial
Average |
1.74 |
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 5.25%. 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 -10.81%.
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 -5.01%.
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 -47.29%.
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 |
0.62 |
Risky |
Industrial
Average |
1.11 |
|
Quick Ratio |
0.17 |
|
|
|
|
Cash Conversion Cycle |
133.65 |
|
|
|
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 0.62 times in 2011, same figure as 0.62 times in 2010, 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 0.17 times in 2011,
decreased from 0.25 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 134 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 |
0.55 |
|
Debt to Equity Ratio |
8.43 |
Risky |
Industrial
Average |
1.30 |
|
Times Interest Earned |
(0.10) |
Risky |
Industrial
Average |
2.03 |
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 -0.11 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 Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
0.59 |
Deteriorated |
Industrial
Average |
2.05 |
|
Total Assets Turnover |
0.46 |
Deteriorated |
Industrial
Average |
1.01 |
|
Inventory Conversion Period |
127.69 |
|
|
|
|
Inventory Turnover |
2.86 |
Impressive |
Industrial
Average |
2.85 |
|
Receivables Conversion Period |
43.40 |
|
|
|
|
Receivables Turnover |
8.41 |
Impressive |
Industrial
Average |
5.52 |
|
Payables Conversion Period |
37.44 |
|
|
|
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.54.84 |
|
|
1 |
Rs.88.16 |
|
Euro |
1 |
Rs.71.54 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.