MIRA INFORM REPORT
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Report No. : |
330310 |
|
Report Date : |
10.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
L.I. TRADING CO., LTD. |
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|
|
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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) : |
31.12.2013 |
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Date of Incorporation : |
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 : |
Subject is engaged in wholesale distributing various kinds of fabrics
and yarns. |
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No. of Employees : |
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 |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
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.
PURCHASE
100% of the
products is purchased
from local suppliers.
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
according to the
past two years.
CREDIT
Sales are by
cash or on
the credit term
of 30 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
BANKING
The banker’s name
was not disclosed.
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 strong as
its products have
been widely used in
various industries. Despite
industrial slowdown, subject
also maintained a
good business growth. Its
business trend is
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
April 3, 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 April 3,
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
Note
The 2014 financial
statement has not
yet available during
investigation.
BALANCE SHEET
[BAHT]
The latest financial
figures published for
December 31, 2013 & 2012 were:
ASSETS
[Unit :
Baht]
|
Current Assets |
2013 |
2012 |
|
|
|
|
|
Cash and Cash Equivalent |
3,347,704.86 |
4,620,328.72 |
|
Trade Accounts Receivable |
22,917,312.27 |
11,928,959.82 |
|
Other Receivable |
4,453,713.09 |
237,820.63 |
|
Inventories |
13,976,846.34 |
23,429,450.99 |
|
Other Current Assets
|
828,212.69 |
1,604,626.49 |
|
|
|
|
|
Total Current Assets
|
45,523,789.25 |
41,821,186.65 |
|
Equipment - Net |
3,208,941.59 |
3,412,821.19 |
|
Other Non-current Assets |
- |
467,100.00 |
|
Total Assets |
48,732,730.84 |
45,701,107.84 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
[Unit :
Baht]
|
Current
Liabilities |
2013 |
2012 |
|
|
|
|
|
Trade Accounts Payable |
1,816,585.12 |
2,782.00 |
|
Other Payable |
86,543.00 |
35,000.00 |
|
Accrued Income Tax |
892,725.56 |
349,641.63 |
|
Current Portion of Hire-purchase Payable |
639,768.00 |
639,768.00 |
|
Other Current Liabilities |
107,750.84 |
165,782.87 |
|
|
|
|
|
Total Current Liabilities |
3,543,372.52 |
1,192,974.50 |
|
Long-term Loan from Person or
Related Company |
10,303,506.73 |
16,553,506.73 |
|
Hire-purchase Payable |
1,337,370.75 |
1,819,599.75 |
|
Total Liabilities |
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 |
|
|
|
|
|
Capital Paid |
25,000,000.00 |
25,000,000.00 |
|
Retained Earning -
Unappropriated |
8,548,480.84 |
1,135,026.86 |
|
Total Shareholders' Equity |
33,548,480.84 |
26,135,026.86 |
|
Total Liabilities & Shareholders'
Equity |
48,732,730.84 |
45,701,107.84 |
PROFIT &
LOSS ACCOUNT
[Unit :
Baht]
|
Revenue |
2013 |
2012 |
|
|
|
|
|
Sales Income |
126,616,828.13 |
26,390,877.55 |
|
Other Income |
19,896.41 |
335,029.82 |
|
Total Revenues |
126,636,714.54 |
26,725,907.37 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
111,802,313.12 |
24,138,032.08 |
|
Selling Expenses |
3,343,188.47 |
291,815.00 |
|
Administrative Expenses |
2,130,460.33 |
811,366.97 |
|
Total Expenses |
117,275,961.92 |
25,241,214.05 |
|
|
|
|
|
Profit / [Loss] before Income
Tax |
9,360,752.62 |
1,484,693.32 |
|
Income Tax |
[1,947,298.64] |
[349,666.46] |
|
|
|
|
|
Net Profit / [Loss] |
7,413,453.98 |
1,135,026.86 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
12.85 |
35.06 |
|
QUICK RATIO |
TIMES |
8.67 |
14.07 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
39.46 |
7.73 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.60 |
0.58 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
45.63 |
354.29 |
|
INVENTORY TURNOVER |
TIMES |
8.00 |
1.03 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
66.06 |
164.98 |
|
RECEIVABLES TURNOVER |
TIMES |
5.52 |
2.21 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
5.93 |
0.04 |
|
CASH CONVERSION CYCLE |
DAYS |
105.76 |
519.23 |
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
88.30 |
91.46 |
|
SELLING & ADMINISTRATION |
% |
4.32 |
4.18 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
11.72 |
9.81 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
7.39 |
5.63 |
|
NET PROFIT MARGIN |
% |
5.86 |
4.30 |
|
RETURN ON EQUITY |
% |
22.10 |
4.34 |
|
RETURN ON ASSET |
% |
15.21 |
2.48 |
|
EARNING PER SHARE |
BAHT |
29.65 |
4.54 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.31 |
0.43 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.45 |
0.75 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
379.77 |
- |
|
OPERATING PROFIT |
% |
530.48 |
- |
|
NET PROFIT |
% |
553.15 |
- |
|
FIXED ASSETS |
% |
(5.97) |
- |
|
TOTAL ASSETS |
% |
6.63 |
- |
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.72 |
Acceptable |
Industrial Average |
21.15 |
|
Net Profit Margin |
5.86 |
Impressive |
Industrial Average |
2.30 |
|
Return on Assets |
15.21 |
Impressive |
Industrial Average |
3.95 |
|
Return on Equity |
22.10 |
Impressive |
Industrial Average |
11.97 |
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 11.72%. 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 5.86%,
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
15.21%, 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 22.1%, 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 Uptrend
Return on Equity Uptrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
12.85 |
Impressive |
Industrial Average |
1.47 |
|
Quick Ratio |
8.67 |
|
|
|
|
Cash Conversion Cycle |
105.76 |
|
|
|
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 12.85 times in 2013, decreased from 35.06 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 8.67 times in 2013,
decreased from 14.07 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 106 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.31 |
Impressive |
Industrial Average |
0.65 |
|
Debt to Equity Ratio |
0.45 |
Impressive |
Industrial Average |
1.84 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.31 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 |
39.46 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
2.60 |
Impressive |
Industrial Average |
1.71 |
|
Inventory Conversion Period |
45.63 |
|
|
|
|
Inventory Turnover |
8.00 |
Impressive |
Industrial Average |
3.85 |
|
Receivables Conversion Period |
66.06 |
|
|
|
|
Receivables Turnover |
5.52 |
Impressive |
Industrial Average |
2.74 |
|
Payables Conversion Period |
5.93 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.52 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 354 days at the
end of 2012 to 46 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 1.03 times in year 2012 to 8 times in
year 2013.
The company's Total Asset Turnover is calculated as 2.6 times and 0.58
times in 2013 and 2012 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.63.51 |
|
|
1 |
Rs.97.85 |
|
Euro |
1 |
Rs.70.50 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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.