MIRA INFORM REPORT
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Report No. : |
352570 |
|
Report Date : |
02.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
L.I. TRADING CO., LTD. |
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|
|
|
Registered Office : |
121 Vanich 1 Road, Chakrawad, Samphantawong, Bangkok 10100 |
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|
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Country : |
Thailand |
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|
Financials (as on) : |
31.12.2014 |
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Year of Establishment : |
02.04.2012 |
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Com. Reg. No.: |
0105555051084 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
The subject is engaged in wholesale distributing various kinds of fabrics and yarns for textile and garment industries. |
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No. of Employee : |
5 |
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 |
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|
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 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 |
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Restricted |
C2 |
|
Off-credit |
D |
Company
name
L.I. TRADING
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 121
VANICH 1 ROAD,
CHAKRAWAD,
SAMPHANTAWONG, BANGKOK
10100,
THAILAND
TELEPHONE : [66] 2688-9425
FAX :
[66] 2688-9427
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2012
REGISTRATION
NO. : 0105555051084
TAX
ID NO. : 3035024089
CAPITAL REGISTERED : BHT. 25,000,000
CAPITAL PAID-UP : BHT.
25,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. THITI KUMHONG,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 5
LINES
OF BUSINESS : FABRICS AND
YARNS
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 April 2,
2012 as a private
limited company under
the registered name L.I.
TRADING CO., LTD., by
Thai group, with the
business objective to wholesale distribute various
kinds of fabrics and yarns.
It currently employs 5 staff.
The
subject’s registered address
is 121 Vanich
1 Road, Chakrawad,
Samphantawong, Bangkok 10100,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Thiti Kumhong |
|
Thai |
41 |
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Thiti Kumhong
is the Managing
Director.
He is Thai nationality with
the age of 41
years old.
BUSINESS OPERATIONS
The subject
is engaged in
wholesale distributing various
kinds of fabrics
and yarns for
textile and garment industries.
PURCHASE
100% of the
products is purchased
from local suppliers.
MAJOR SUPPLIER
Jong Stit Co.,
Ltd. : Thailand
SALES
100% of the
products is sold
locally to wholesalers,
manufacturers and end-users.
SUBSIDIARY AND
AFFILIATED COMPANY
Cosmo Enterprises Co., Ltd.
Business Type :
Distributor of fabrics
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 credit term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject currently employs
5 staff.
LOCATION DETAILS
The
premises is rented for administrative office
at the heading address. Premises is
located in commercial
area.
COMMENT
Subject’s
business performance remains
moderate as its
products have been
widely used in
various industries. Despite
industrial slowdown, subject also
maintained a stable business.
Its business outlook
remains promising.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 100,000,000 divided
into 1,000,000 shares
of Bht. 100
each.
On
August 14, 2012,
the registered capital
was decreased to
Bht. 25,000,000 divided
into 250,000 shares
of Bht. 100 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE
[as
at June 17,
2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Thiti Kumhong Nationality: Thai Address : 98/305
Moo 10, T. Bangmaenang, A. Bangyai,
Nonthaburi 11140 |
249,998 |
100.00 |
|
Ms. Pranee Kumhong Nationality: Thai Address : 95/321
Moo 10, T. Bangmaenang, A.
Bangyai, Nonthaburi 11140
|
1 |
- |
|
Mr. Wayu Kul-on Nationality: Thai Address : 95/321
Moo 10, T. Bangmaenang, A.
Bangyai, Nonthaburi 11140 |
1 |
- |
Total Shareholders : 3
Share Structure [as
at June 17,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
250,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
250,000 |
100.00 |
NAME
OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mr. Sukhum Photisawad No. 7052
Financials
BALANCE SHEET [BAHT]
The latest
financial figures published
for December 31, 2014,
2013 & 2012 were:
ASSETS
[Unit
: Baht]
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash
and Cash Equivalent |
2,783,813.23 |
3,347,704.86 |
4,620,328.72 |
|
Trade Accounts Receivable |
27,605,523.50 |
22,917,312.27 |
11,928,959.82 |
|
Other
Receivable |
1,996,297.19 |
4,453,713.09 |
237,820.63 |
|
Inventories |
17,349,700.83 |
13,976,846.34 |
23,429,450.99 |
|
Other
Current Assets |
493,916.36 |
828,212.69 |
1,604,626.49 |
|
|
|
|
|
|
Total
Current Assets |
50,229,251.11 |
45,523,789.25 |
41,821,186.65 |
|
Equipment
- Net |
3,028,411.99 |
3,208,941.59 |
3,412,821.19 |
|
Other Non-current Assets |
- |
- |
467,100.00 |
|
Total
Assets |
53,257,663.10 |
48,732,730.84 |
45,701,107.84 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
[Unit :
Baht]
|
Current Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Trade
Accounts Payable |
7,256,321.64 |
1,816,585.12 |
2,782.00 |
|
Other
Payable |
171,279.17 |
86,543.00 |
35,000.00 |
|
Accrued
Income Tax |
822,238.69 |
892,725.56 |
349,641.63 |
|
Current
Portion of Hire-purchase
Payable |
639,768.00 |
639,768.00 |
639,768.00 |
|
Other
Current Liabilities |
203,379.48 |
107,750.84 |
165,782.87 |
|
|
|
|
|
|
Total Current Liabilities |
9,092,986.98 |
3,543,372.52 |
1,192,974.50 |
|
Long-term Loan from Person or
Related Company |
2,553,506.73 |
10,303,506.73 |
16,553,506.73 |
|
Hire-purchase Payable |
855,141.75 |
1,337,370.75 |
1,819,599.75 |
|
Total
Liabilities |
12,501,635.46 |
15,184,250.00 |
19,566,080.98 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share
capital : Baht 100 par
value
authorized, issued and
fully
paid share capital
250,000 shares |
25,000,000.00 |
25,000,000.00 |
25,000,000.00 |
|
|
|
|
|
|
Capital
Paid |
25,000,000.00 |
25,000,000.00 |
25,000,000.00 |
|
Retained
Earning - Unappropriated |
15,756,027.64 |
8,548,480.84 |
1,135,026.86 |
|
Total Shareholders' Equity |
40,756,027.64 |
33,548,480.84 |
26,135,026.86 |
|
Total Liabilities & Shareholders'
Equity |
53,257,663.10 |
48,732,730.84 |
45,701,107.84 |
PROFIT &
LOSS ACCOUNT
[Unit :
Baht]
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
125,480,446.92 |
126,616,828.13 |
26,390,877.55 |
|
Other
Income |
187,094.86 |
19,896.41 |
335,029.82 |
|
Total
Revenues |
125,667,541.78 |
126,636,714.54 |
26,725,907.37 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost
of Goods Sold
|
111,229,259.21 |
111,802,313.12 |
24,138,032.08 |
|
Selling
Expenses |
1,519,374.62 |
2,714,085.74 |
291,815.00 |
|
Administrative Expenses |
3,764,044.97 |
2,643,878.02 |
811,366.97 |
|
Total Expenses |
116,512,678.80 |
117,160,276.88 |
25,241,214.05 |
|
|
|
|
|
|
Profit / [Loss] before
Financial Cost &
Income Tax |
9,154,862.98 |
9,476,437.66 |
1,484,693.32 |
|
Financial Cost |
[115,685.04] |
[115,685.04] |
- |
|
|
|
|
|
|
Profit / [Loss] before
Income Tax |
9,039,177.94 |
9,360,752.62 |
1,484,693.32 |
|
Income
Tax |
[1,831,631.14] |
[1,947,298.64] |
[349,666.46] |
|
|
|
|
|
|
Net
Profit / [Loss] |
7,207,546.80 |
7,413,453.98 |
1,135,026.86 |
L.I.
TRADING CO., LTD.
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
5.52 |
12.85 |
35.06 |
|
QUICK RATIO |
TIMES |
3.56 |
8.67 |
14.07 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
41.43 |
39.46 |
7.73 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.36 |
2.60 |
0.58 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
56.93 |
45.63 |
354.29 |
|
INVENTORY TURNOVER |
TIMES |
6.41 |
8.00 |
1.03 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
80.30 |
66.06 |
164.98 |
|
RECEIVABLES TURNOVER |
TIMES |
4.55 |
5.52 |
2.21 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
23.81 |
5.93 |
0.04 |
|
CASH CONVERSION CYCLE |
DAYS |
113.42 |
105.76 |
519.23 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
88.64 |
88.30 |
91.46 |
|
SELLING & ADMINISTRATION |
% |
4.21 |
4.23 |
4.18 |
|
INTEREST |
% |
0.09 |
0.09 |
- |
|
GROSS PROFIT MARGIN |
% |
11.51 |
11.72 |
9.81 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
7.30 |
7.48 |
5.63 |
|
NET PROFIT MARGIN |
% |
5.74 |
5.86 |
4.30 |
|
RETURN ON EQUITY |
% |
17.68 |
22.10 |
4.34 |
|
RETURN ON ASSET |
% |
13.53 |
15.21 |
2.48 |
|
EARNING PER SHARE |
BAHT |
28.83 |
29.65 |
4.54 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.23 |
0.31 |
0.43 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.31 |
0.45 |
0.75 |
|
TIME INTEREST EARNED |
TIMES |
79.14 |
81.92 |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(0.90) |
379.77 |
|
|
OPERATING PROFIT |
% |
(3.39) |
538.28 |
|
|
NET PROFIT |
% |
(2.78) |
553.15 |
|
|
FIXED ASSETS |
% |
(5.63) |
(5.97) |
|
|
TOTAL ASSETS |
% |
9.29 |
6.63 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -0.9%. Turnover has decreased from THB
126,616,828.13 in 2013 to THB 125,480,446.92 in 2014. While net profit has
decreased from THB 7,413,453.98 in 2013 to THB 7,207,546.80 in 2014. And total
assets has increased from THB 48,732,730.84 in 2013 to THB 53,257,663.10 in
2014.
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.51 |
Deteriorated |
Industrial Average |
25.71 |
|
Net Profit Margin |
5.74 |
Impressive |
Industrial Average |
0.32 |
|
Return on Assets |
13.53 |
Impressive |
Industrial Average |
0.54 |
|
Return on Equity |
17.68 |
Impressive |
Industrial Average |
1.52 |
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 11.51%. 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. Net Profit Margin ratio is 5.74%,
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. Return on Assets ratio is
13.53%, 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.
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 17.68%, 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 Downtrend
Return on Equity Downtrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
5.52 |
Impressive |
Industrial Average |
1.55 |
|
Quick Ratio |
3.56 |
|
|
|
|
Cash Conversion Cycle |
113.42 |
|
|
|
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 5.52 times in 2014, decrease from 12.85 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 3.56 times in 2014,
decrease from 8.67 times, although excluding inventory so the company still
have good short-term financial strength.
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 114 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.23 |
Impressive |
Industrial Average |
0.64 |
|
Debt to Equity Ratio |
0.31 |
Impressive |
Industrial Average |
1.72 |
|
Times Interest Earned |
79.14 |
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 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 79.14 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 0.23 less than 0.5, most of the company's
assets are financed through equity.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Stable
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
41.43 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
2.36 |
Impressive |
Industrial Average |
1.71 |
|
Inventory Conversion Period |
56.93 |
|
|
|
|
Inventory Turnover |
6.41 |
Impressive |
Industrial Average |
3.84 |
|
Receivables Conversion Period |
80.30 |
|
|
|
|
Receivables Turnover |
4.55 |
Impressive |
Industrial Average |
2.98 |
|
Payables Conversion Period |
23.81 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.55 and 5.52 in
2014 and 2013 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate revenue. A lower ratio may indicate
over extension and collection problems. Conversely, a higher ratio may indicate
an overtly stringent policy. In this case, the company's A/R ratio in 2014
decreased from 2013. This would suggest the company had deteriorated in the
management of its debt collections.
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 46 days at the
end of 2013 to 57 days at the end of 2014. This represents a negative trend.
And Inventory turnover has decreased from 8 times in year 2013 to 6.41 times in
year 2014.
The company's Total Asset Turnover is calculated as 2.36 times and 2.6
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 Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.52 |
|
|
1 |
Rs.100.44 |
|
Euro |
1 |
Rs.70.44 |
|
TBH |
1 |
Rs. 1.86 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
HEE |
|
|
|
|
Report Prepared
by : |
ASH |
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.