MIRA INFORM REPORT
|
Report No. : |
334037 |
|
Report Date : |
03.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
NEW LINE FABRICS
CO., LTD. |
|
|
|
|
Registered Office : |
210 Trok Watkanmatuyaram [Soi Charoenkrung
14], Charoenkrung Road,
Samphanthawong, Bangkok 10100 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
27.03.2006 |
|
|
|
|
Com. Reg. No.: |
0105549040670 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Distributor, Importer and Exporter of Fabrics and Dried Fruits. |
|
|
|
|
No. of Employees : |
12 |
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 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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Thailand |
A2 |
A2 |
|
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 has historically had a strong economy due in part to industrial and
agriculture exports - mostly electronics, agricultural commodities, automobiles
and parts, and processed foods. The economy experienced slow growth and
declining exports in 2014, in part due to domestic political turmoil and
sluggish global demand. With full employment, Thailand attracts an estimated 4
million migrant workers from neighboring countries, and faces labor shortages.
Following the May 2014 coup d’tat, tourism decreased 6-7% but is beginning to
recover. The household debt to GDP ratio is over 80%. The Thai government in
2013 implemented a nation-wide 300 baht ($10) per day minimum wage policy and
deployed new tax reforms designed to lower rates on middle-income earners. The
Thai baht has remained stable.
|
Source
: CIA |
Company
Name and address
NEW LINE FABRICS CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 210
TROK WATKANMATUYARAM
[SOI CHAROENKRUNG
14], CHAROENKRUNG ROAD,
SAMPHANTHAWONG, BANGKOK
10100, THAILAND
TELEPHONE : [66] 2623-0943-6,
083 197-6900
FAX
: [66] 2623-0145
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2006
REGISTRATION
NO. : 0105549040670
TAX
ID NO. : 3032128179
CAPITAL REGISTERED : BHT. 5,000,000
CAPITAL PAID-UP : BHT.
5,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
AMAN PAL SINGH
KALRA, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 12
LINES
OF BUSINESS : FABRICS
AND DRIED FRUITS
DISTRIBUTOR,
IMPORTER 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 March 27, 2006 as a private limited company under the name style NEW LINE FABRICS CO., LTD., by Thai groups. Its business objective is to distribute fabrics, as well as importing and exporting dried fruits for both local and overseas markets. It currently employs 12 staff.
The subject’s registered address is 210 Trok Watkanmatuyaram [Soi Charoenkrung 14], Charoenkrung Road, Samphanthawong, Bangkok 10100, and this is the subject’s current operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Aman Pal Singh Kalra |
[x] |
Thai |
56 |
|
Mrs. Krishna Kalra |
[x] |
Thai |
56 |
|
Mr. Nivit Kalra |
|
Thai |
31 |
AUTHORIZED
PERSON
One of the
above directors [x]
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Aman Pal
Singh Kalra is the
Managing Director.
He is Thai
nationality with the
age of 56
years old.
Mrs. Krishna Kalra
is the Assistant
Managing Director.
She is Thai
nationality with the
age of 56
years old.
Mr. Nivit Kalra is
the G.M./Sales &
Marketing Manager.
He is Thai
nationality with the
age of 31
years old.
BUSINESS
OPERATIONS
The subject is
engaged in distributing
various kinds of
fabrics such as printed fabric, polyester, cotton,
embroidered, knitted, silk,
jacquard, curtain fabric
and etc., as
well as importing
and exporting dried
fruits.
PURCHASE
90% of fabrics
is purchased from
local suppliers, the
remaining 10% is
imported from India, U.S.A., Italy, France,
Japan and Republic of
China, while dried
fruits are purchased from
suppliers both domestic
and overseas mainly
in India and
Republic of China.
MAJOR
SUPPLIERS
Hangzhou
Antex Co., Ltd. :
Republic of China
Rung
Udom Weaving Co.,
Ltd. :
Thailand
Luckytex
[Thai] Public Company
Limited : Thailand
SALES [LOCAL]
The products are
sold locally to
wholesalers, retailers, manufacturers
and end-users.
EXPORT [COUNTRIES]
Dried fruits are
exported to India,
Russia, Malaysia, Republic
of China, Indonesia
and Hong Kong.
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
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
T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs 12
staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
and shop at
the heading address.
Premise is located
in commercial/residential area.
Branch:
748/54-55 Soi
Petchkasem 3, Yaek
3, Petchkasem Rd.,
Watthaphra, Bangkokyai, Bangkok
10600.
COMMENT
The subject posted
its tremendous slow
sales for the
year end December
31, 2014 compared
to the previous
year. Moreover, sale
in 2015 has
seen slowly grown due
to unfavorable conditions
of domestic consumption
with the economy recovering remains
slow.
FINANCIAL
INFORMATION
The
capital was registered at Bht. 5,000,000 divided
into 50,000 shares
of Bht. 100 each
with fully paid-up.
THE
SHAREHOLDERS LISTED WERE: [as of
July 1, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Aman Pal
Singh Kalra Nationality: Thai Address : 1/69
Soi Patanaves 10,
Phrakanong Nua,
Wattana, Bangkok |
16,996 |
33.99 |
|
Mrs. Krishna Kalra Nationality: Thai Address : 1/71
Soi Patanaves 10,
Phrakanong Nua,
Wattana, Bangkok |
16,500 |
33.00 |
|
Mr. Nivit Kalra Nationality: Thai Address : 1/69
Soi Patanaves 10,
Phrakanong Nua,
Wattana, Bangkok |
16,500 |
33.00 |
|
Ms. Nathanan Kamlert Nationality: Thai Address : 22
Kor. Moo 9, Charansanitwong Rd.,
Bangwaek, Pasicharoen, Bangkok |
1 |
|
|
Ms. Priyakorn Deerojanadech Nationality: Thai Address : 685
Charansanitwong,
Bangyeekan,
Bangplad, Bangkok |
1 |
= 0.01 |
|
Mr. Damrong Wauthad Nationality: Thai Address : 2
Moo 1, T.
Wanghin, A. Bangrai,
Uthaithani |
1 |
|
|
Ms. Wimol Wannatavee Nationality: Thai Address : 43
Moo 8, T.
Chan, A. Kantrarom,
Srisakes |
1 |
|
Total Shareholders : 7
Share Structure [as
at July 1,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
50,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
50,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mrs. Vanee Maneenak No. 2329
BALANCE
SHEET [BAHT]
The
latest financial figures
published for December 31,
2014, 2013 & 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
198,669.31 |
439,200.01 |
1,678,725.52 |
|
Trade Accounts Receivable
|
8,355,835.03 |
28,498,047.08 |
20,771,549.51 |
|
Inventories |
28,295,075.55 |
37,794,334.77 |
39,957,078.08 |
|
Other Current Assets
|
2,532,663.58 |
2,056,013.67 |
- |
|
|
|
|
|
|
Total Current
Assets |
39,382,243.47 |
68,787,595.53 |
62,407,353.11 |
|
Equipment - Net |
1,019,491.92 |
187,601.76 |
282,712.53 |
|
Intangible Assets |
29,808.34 |
- |
- |
|
Total Assets
|
40,431,543.73 |
68,975,197.29 |
62,690,065.64 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institutions |
1,742,037.06 |
8,311,672.02 |
1,991,925.37 |
|
Trade Accounts & Other Payable |
99,994.33 |
380,299.26 |
11,769,604.28 |
|
Other Short-term Loans |
26,300,469.30 |
49,012,000.00 |
- |
|
Current Portion of Long-term Liabilities |
279,998.13 |
- |
- |
|
Accrued Income Tax |
68,961.20 |
141,409.27 |
250,874.60 |
|
Other Current Liabilities |
87,733.33 |
51,591.89 |
- |
|
|
|
|
|
|
Total Current
Liabilities |
28,579,193.35 |
57,896,972.44 |
14,012,404.25 |
|
Long-term Loan from Person
or Related Company |
- |
- |
38,630,000.00 |
|
Long-term Liabilities |
193,999.82 |
- |
- |
|
Total Liabilities |
28,773,193.17 |
57,896,972.44 |
52,642,404.25 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value Authorized, issued
and fully paid share capital
50,000 shares |
5,000,000.00 |
5,000,000.00 |
5,000,000.00 |
|
|
|
|
|
|
Capital Paid |
5,000,000.00 |
5,000,000.00 |
5,000,000.00 |
|
Retained Earning -
Unappropriated |
6,658,350.56 |
6,078,224.85 |
5,047,661.39 |
|
Total Shareholders' Equity |
11,658,350.56 |
11,078,224.85 |
10,047,661.39 |
|
Total Liabilities
& Shareholders' Equity |
40,431,543.73 |
68,975,197.29 |
62,690,065.64 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
57,970,299.61 |
107,753,229.44 |
145,149,672.91 |
|
Gain on Exchange Rate |
913,861.52 |
539,157.41 |
1,198,207.91 |
|
Other Income |
87,455.32 |
7,095.97 |
250,629.10 |
|
Total Revenues
|
58,971,616.45 |
108,299,482.82 |
146,598,509.92 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
53,959,503.41 |
101,586,072.92 |
139,431,496.16 |
|
Selling Expenses |
552,751.65 |
345,856.80 |
944,118.52 |
|
Administrative Expenses |
3,581,545.22 |
3,857,754.17 |
3,012,680.03 |
|
Total Expenses |
58,093,800.28 |
105,789,683.89 |
143,388,294.71 |
|
|
|
|
|
|
Profit / [Loss] before Finance
Costs & Income Tax |
877,816.17 |
2,509,798.93 |
3,210,215.21 |
|
Finance Costs |
[119,818.58] |
[1,181,412.01] |
[1,068,201.61] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax |
757,997.59 |
1,328,386.92 |
2,142,013.60 |
|
Income Tax |
[177,871.88] |
[297,823.46] |
[493,813.13] |
|
Net Profit / [Loss] |
580,125.71 |
1,030,563.46 |
1,648,200.47 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.38 |
1.19 |
4.45 |
|
QUICK RATIO |
TIMES |
0.30 |
0.50 |
1.60 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
56.86 |
574.37 |
513.42 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.43 |
1.56 |
2.32 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
191.40 |
135.80 |
104.60 |
|
INVENTORY TURNOVER |
TIMES |
1.91 |
2.69 |
3.49 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
52.61 |
96.53 |
52.23 |
|
RECEIVABLES TURNOVER |
TIMES |
6.94 |
3.78 |
6.99 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
0.68 |
1.37 |
30.81 |
|
CASH CONVERSION CYCLE |
DAYS |
243.33 |
230.96 |
126.02 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
93.08 |
94.28 |
96.06 |
|
SELLING & ADMINISTRATION |
% |
7.13 |
3.90 |
2.73 |
|
INTEREST |
% |
0.21 |
1.10 |
0.74 |
|
GROSS PROFIT MARGIN |
% |
8.65 |
6.23 |
4.94 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.51 |
2.33 |
2.21 |
|
NET PROFIT MARGIN |
% |
1.00 |
0.96 |
1.14 |
|
RETURN ON EQUITY |
% |
4.98 |
9.30 |
16.40 |
|
RETURN ON ASSET |
% |
1.43 |
1.49 |
2.63 |
|
EARNING PER SHARE |
BAHT |
11.60 |
20.61 |
32.96 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.71 |
0.84 |
0.84 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.47 |
5.23 |
5.24 |
|
TIME INTEREST EARNED |
TIMES |
7.33 |
2.12 |
3.01 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(46.20) |
(25.76) |
|
|
OPERATING PROFIT |
% |
(65.02) |
(21.82) |
|
|
NET PROFIT |
% |
(43.71) |
(37.47) |
|
|
FIXED ASSETS |
% |
443.43 |
(33.64) |
|
|
TOTAL ASSETS |
% |
(41.38) |
10.03 |
|
ANNUAL
GROWTH: RISKY
An annual sales growth is -46.2%. Turnover has decreased from THB
PROFITABILITY:
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.65 |
Satisfactory |
Industrial
Average |
10.61 |
|
Net Profit Margin |
1.00 |
Acceptable |
Industrial
Average |
1.36 |
|
Return on Assets |
1.43 |
Satisfactory |
Industrial
Average |
1.57 |
|
Return on Equity |
4.98 |
Satisfactory |
Industrial
Average |
5.20 |
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 8.65%. When compared with
the industry average, the ratio of the company was lower. This indicated that
company may have 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 1%. 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 1.43%.
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 4.98%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.38 |
Impressive |
Industrial
Average |
1.24 |
|
Quick Ratio |
0.30 |
|
|
|
|
Cash Conversion Cycle |
243.33 |
|
|
|
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 1.38 times in 2014, increased from 1.19 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 0.3 times in 2014,
decreased from 0.5 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 244 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.71 |
Acceptable |
Industrial
Average |
0.65 |
|
Debt to Equity Ratio |
2.47 |
Risky |
Industrial
Average |
2.02 |
|
Times Interest Earned |
7.33 |
Impressive |
Industrial
Average |
- |
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 higher the percentage means that the company is
using less equity and has stronger leverage position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 7.33 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 0.71 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 Stable
ACTIVITY:
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
56.86 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.43 |
Impressive |
Industrial
Average |
1.17 |
|
Inventory Conversion Period |
191.40 |
|
|
|
|
Inventory Turnover |
1.91 |
Acceptable |
Industrial
Average |
3.61 |
|
Receivables Conversion Period |
52.61 |
|
|
|
|
Receivables Turnover |
6.94 |
Impressive |
Industrial
Average |
2.20 |
|
Payables Conversion Period |
0.68 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.94 and
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has increased from 136 days at the
end of 2013 to 191 days at the end of 2014. This represents a negative trend.
And Inventory turnover has decreased from 2.69 times in year 2013 to 1.91 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.43 times and 1.56
times in 2014 and 2013 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Stable
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.01 |
|
|
1 |
Rs.99.84 |
|
Euro |
1 |
Rs.70.16 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAS |
|
|
|
|
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.