MIRA INFORM REPORT
|
Report No. : |
337088 |
|
Report Date : |
19.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
N V K SPINNING CO., LTD. |
|
|
|
|
Registered Office : |
45 Soi Charoennakorn 13, Charoennakorn Road,
Klongtonsai, Klongsan,
Bangkok 10600 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
10.11.2006 |
|
|
|
|
Com. Reg. No.: |
0745549003680 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in manufacturing and
distributing various kinds
of yarns specialized
in polyester yarn and
cotton yarn, as
well as providing yarn
spinning service according
to customer’s requirement
for textile and
garment industries. |
|
|
|
|
No. of Employees : |
150 |
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 |
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, and generally pro-investment policies Thailand has historically had a strong
economy due in part to competitive 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 2-4 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
N V K SPINNING CO., LTD.
SUMMARY
BUSINESS ADDRESS : 45 SOI CHAROENNAKORN
13,
CHAROENNAKORN ROAD,
KLONGTONSAI,
KLONGSAN,
BANGKOK 10600, THAILAND
TELEPHONE : [66] 2437-0884, 2439-0070
FAX : [66] 2439-0239
E-MAIL ADDRESS : anekth44@yahoo.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2006
REGISTRATION NO. : 0745549003680
TAX ID NO. : 3032422192
CAPITAL REGISTERED : BHT.
60,000,000
CAPITAL PAID-UP : BHT.
60,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR.
ANEK THAMRONGVORAPORN, THAI
MANAGING DIRECTOR
NO. OF STAFF : 150
LINES OF BUSINESS : YARN
SPINNING
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 November 10,
2006 as a
private limited company
under the registered
name N V K SPINNING
CO., LTD., by Thai groups,
with the business objective
to manufacture and service
various kinds of
yarn for textile
and garment industries
for both domestic
and international markets. It
currently employs approximately
150 staff.
The subject’s registered
address is 45
Soi Charoennakorn 13, Charoennakorn
Road,
Klongtonsai, Klongsan, Bangkok 10600, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Anek Thamrongvoraporn |
|
Thai |
44 |
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Anek Thamrongvoraporn is
the Managing Director.
He is Thai
nationality with the
age of 44 years
old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
and distributing various
kinds of yarns
specialized in polyester yarn
and cotton yarn,
as well as providing
yarn spinning service
according to customer’s
requirement for textile
and garment industries.
PURCHASE
Raw materials such
as cotton, cotton
yarn and polyester
yarn are purchased
from suppliers both domestic
and overseas in
India, Republic of
China, Australia, U.K.
and Taiwan.
SALES
60% of the
products is exported
to India, Vietnam, U.S.A., Indonesia, Republic of China,
Malaysia, Pakistan, and
the countries in
Europe, the remaining
40% is sold
locally.
MAJOR CUSTOMERS
Numsin Knitting Co.,
Ltd. : Thailand
Numsin Garment Co.,
Ltd. : Thailand
SUBSIDIARY AND
AFFILIATED COMPANY
Voraporn Garment Co.,
Ltd.
Business Type : Manufacturer and
distributor of garment
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 to 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 currently
employs approximately 150
office staff and
factory workers.
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 at
79/4 Moo 5,
Ekachai Road, T. Kokkham,
A. Muang, Samutsakorn 74000.
COMMENT
The subject is
a manufacturer of yarn
spinning. The machinery
used in spinning
is from world leading manufacturers of textile machinery. Its
plant is operating
at high efficiency, and quality of
products is comparable
to top class
plants in world
markets. This has enabled
the subject a
commitment to the
concept of absolute
consistency in quality.
The subject’s operating
performance in 2014
was depressive with a
large amount of
net loss mainly
due to higher
cost of goods
sold which eroded
its profit margin.
The subject would
encounter a slowdown
in the business
this year as
well from a
slowdown of economy.
FINANCIAL INFORMATION
The capital was
registered at Bht. 3,000,000 divided
into 30,000 shares
of Bht. 100 each with
fully paid.
On December 28, 2007,
the registered capital
was increased to
Bht. 60,000,000 divided
into 600,000 shares
of Bht. 100 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE :
[as at April
30, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Anek Thamrongvoraporn Nationality: Thai Address : 45
Soi Charoennakorn 13,
Charoennakorn Road, Klongtonsai, Klongsan, Bangkok |
384,000 |
64.00 |
|
Ms. Amata Thamrongvoraporn Nationality: Thai Address : 45
Soi Charoennakorn 13,
Charoennakorn Road, Klongtonsai,
Klongsan, Bangkok |
71,400 |
11.90 |
|
Mr. Namphon Thamrongvoraporn Nationality: Thai Address : 45
Soi Charoennakorn 13,
Charoennakorn Road, Klongtonsai,
Klongsan, Bangkok |
71,400 |
11.90 |
|
Mr. Thanawat Thamrongvoraporn Nationality: Thai Address : 45
Soi Charoennakorn 13,
Charoennakorn Road, Klongtonsai,
Klongsan, Bangkok |
71,400 |
11.90 |
|
Mr. Veerapoj Tiengpattanawong Nationality: Thai Address : 42
Soi Charoennakorn 30/1,
Banglampulang, Klongsan, Bangkok
|
600 |
0.10 |
|
|
|
|
|
Mr. Viwat Tiengpattanapong Nationality: Thai Address : 42
Soi Charoennakorn 30/1,
Banglampulang, Klongsan, Bangkok
|
600 |
0.10 |
|
Ms. Pantipa Tiengpattanawong Nationality: Thai Address : 42
Soi Charoennakorn 30/1,
Banglampulang, Klongsan, Bangkok
|
600 |
0.10 |
Total Shareholders : 7
Share Structure [as
at April 30,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
600,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
600,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Mr. Somchai Klinkajay No.
1527
BALANCE SHEET
[BAHT]
The latest financial figures published
as at December
31, 2014, 2013
& 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
760,020.67 |
558,571.13 |
517,259.39 |
|
Trade Accounts &
Other Receivable |
19,492,691.78 |
19,451,573.94 |
41,356,648.73 |
|
Inventories |
142,184,692.29 |
185,067,954.50 |
185,486,425.19 |
|
Other Current Assets
|
2,851,093.10 |
2,763,542.94 |
4,208,748.40 |
|
|
|
|
|
|
Total Current Assets
|
165,288,497.84 |
207,841,642.51 |
231,569,081.71 |
|
|
|
|
|
|
Fixed Assets |
132,232,438.69 |
135,561,072.99 |
138,698,729.10 |
|
Other Non - current Assets |
643,610.00 |
643,610.00 |
643,610.00 |
|
Total Assets |
298,164,546.53 |
344,046,325.50 |
370,911,420.81 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
16,280,087.60 |
13,258,005.72 |
18,342,358.93 |
|
Trade Accounts & Other
Payable |
268,752,468.29 |
248,977,868.08 |
274,023,357.16 |
|
Other Current Liabilities |
2,499,768.72 |
15,619,056.56 |
13,527,545.26 |
|
|
|
|
|
|
Total Current Liabilities |
287,532,324.61 |
277,854,930.36 |
305,893,261.35 |
|
Hire-purchase Payable |
1,633,247.87 |
2,352,683.45 |
2,035,303.58 |
|
Total Liabilities |
289,165,572.48 |
280,207,613.81 |
307,928,564.93 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized and issued
share capital
600,000 shares |
60,000,000.00 |
60,000,000.00 |
60,000,000.00 |
|
|
|
|
|
|
Capital Paid |
60,000,000.00 |
60,000,000.00 |
60,000,000.00 |
|
Retained Earning Unappropriated |
[51,001,025.95] |
3,838,711.69 |
2,982,855.88 |
|
Total Shareholders' Equity |
8,998,974.05 |
63,838,711.69 |
62,982,855.88 |
|
Total Liabilities & Shareholders' Equity |
298,164,546.53 |
344,046,325.50 |
370,911,420.81 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
427,752,065.51 |
429,532,673.89 |
451,606,106.75 |
|
Other Income |
3,651,699.55 |
8,788,718.33 |
7,729,679.54 |
|
Total Revenues |
431,403,765.06 |
438,321,392.22 |
459,335,786.29 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
455,582,642.77 |
398,880,308.97 |
414,781,994.63 |
|
Selling Expenses |
4,854,876.17 |
7,687,260.97 |
8,385,767.56 |
|
Administrative Expenses |
20,092,792.69 |
24,166,795.45 |
27,297,508.84 |
|
Total Expenses |
480,530,311.63 |
430,734,365.39 |
450,465,271.03 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
[49,126,546.57] |
7,587,026.83 |
8,870,515.26 |
|
Financial Costs |
[5,713,191.07] |
[6,517,200.27] |
[8,313,547.00] |
|
Profit / [Loss] before Income
Tax |
[54,839,737.64] |
1,069,826.56 |
556,968.26 |
|
Income Tax |
- |
[213,970.75] |
[128,110.00] |
|
|
|
|
|
|
Net Profit / [Loss] |
[54,839,737.64] |
855,855.81 |
428,858.26 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.57 |
0.75 |
0.76 |
|
QUICK RATIO |
TIMES |
0.07 |
0.07 |
0.14 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.23 |
3.17 |
3.26 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.43 |
1.25 |
1.22 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
113.91 |
169.35 |
163.22 |
|
INVENTORY TURNOVER |
TIMES |
3.20 |
2.16 |
2.24 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
16.63 |
16.53 |
33.43 |
|
RECEIVABLES TURNOVER |
TIMES |
21.94 |
22.08 |
10.92 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
215.32 |
227.83 |
241.14 |
|
CASH CONVERSION CYCLE |
DAYS |
(84.77) |
(41.95) |
(44.49) |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
106.51 |
92.86 |
91.85 |
|
SELLING & ADMINISTRATION |
% |
5.83 |
7.42 |
7.90 |
|
INTEREST |
% |
1.34 |
1.52 |
1.84 |
|
GROSS PROFIT MARGIN |
% |
(5.65) |
9.18 |
9.87 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(11.48) |
1.77 |
1.96 |
|
NET PROFIT MARGIN |
% |
(12.82) |
0.20 |
0.09 |
|
RETURN ON EQUITY |
% |
(609.40) |
1.34 |
0.68 |
|
RETURN ON ASSET |
% |
(18.39) |
0.25 |
0.12 |
|
EARNING PER SHARE |
BAHT |
(91.40) |
1.43 |
0.71 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.97 |
0.81 |
0.83 |
|
DEBT TO EQUITY RATIO |
TIMES |
32.13 |
4.39 |
4.89 |
|
TIME INTEREST EARNED |
TIMES |
(8.60) |
1.16 |
1.07 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(0.41) |
(4.89) |
|
|
OPERATING PROFIT |
% |
(747.51) |
(14.47) |
|
|
NET PROFIT |
% |
(6,507.59) |
99.57 |
|
|
FIXED ASSETS |
% |
(2.46) |
(2.26) |
|
|
TOTAL ASSETS |
% |
(13.34) |
(7.24) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -0.41%. Turnover has decreased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
(5.65) |
Deteriorated |
Industrial Average |
(9.93) |
|
Net Profit Margin |
(12.82) |
Deteriorated |
Industrial Average |
(1.96) |
|
Return on Assets |
(18.39) |
Deteriorated |
Industrial Average |
(1.93) |
|
Return on Equity |
(609.40) |
Deteriorated |
Industrial Average |
(5.04) |
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. Gross Profit Margin is
-5.65%. When compared with the industry average, the ratio of the
company was higher, 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 -12.82%.
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 -18.39%.
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 -609.4%.
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 |
0.57 |
Risky |
Industrial Average |
1.10 |
|
Quick Ratio |
0.07 |
|
|
|
|
Cash Conversion Cycle |
(84.77) |
|
|
|
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 0.57 times in 2014, decrease from 0.75 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 0.07 times in 2014,
same figure as in
2013, 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 -85 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.97 |
Acceptable |
Industrial Average |
0.66 |
|
Debt to Equity Ratio |
32.13 |
Risky |
Industrial Average |
1.92 |
|
Times Interest Earned |
(8.60) |
Risky |
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 -8.6 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 0.97 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 Uptrend
Times Interest Earned Stable
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.23 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.43 |
Impressive |
Industrial Average |
0.96 |
|
Inventory Conversion Period |
113.91 |
|
|
|
|
Inventory Turnover |
3.20 |
Impressive |
Industrial Average |
3.05 |
|
Receivables Conversion Period |
16.63 |
|
|
|
|
Receivables Turnover |
21.94 |
Impressive |
Industrial Average |
3.13 |
|
Payables Conversion Period |
215.32 |
|
|
|
The company's Account Receivable Ratio is calculated as 21.94 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 decreased from 169 days at the
end of 2013 to 114 days at the end of 2014. This represents a positive trend.
And Inventory turnover has increased from 2.16 times in year 2013 to 3.2 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.43 times and 1.25 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 Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.22 |
|
|
1 |
Rs.102.23 |
|
Euro |
1 |
Rs.72.39 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TPT |
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.