MIRA INFORM REPORT
|
Report No. : |
350285 |
|
Report Date : |
25.11.2015 |
IDENTIFICATION DETAILS
|
Name : |
RIKHITEX [AWTAR NIWAS] CO., LTD. |
|
|
|
|
Registered Office : |
78A, 4th Floor, Anuwong Road, Chakrawat, Samphantawong, Bangkok 10100 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
29.08.1996 |
|
|
|
|
Com. Reg. No.: |
0105539096265 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject is
engaged in importing, distributing and re-exporting various kinds of textiles
such as grey fabric, printed fabric, denim fabric, yarn dyed/piece dyed,
embroidery & lace, polyester & 100% polyester taffeta, cotton fabric,
rayon fabric and silk fabric, as well as exporting the local products. |
|
|
|
|
No. of Employee : |
12 |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Thailand |
B1 |
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, 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'etat, 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
RIKHITEX
[AWTAR NIWAS] CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 78A,
4th FLOOR, ANUWONG
ROAD, CHAKRAWAT,
SAMPHANTAWONG, BANGKOK
10100, THAILAND
TELEPHONE : [66] 2622-7980-5
FAX :
[66] 2224-0658
E-MAIL
ADDRESS : rikhitex@gmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1996
REGISTRATION
NO. : 0105539096265
TAX
ID NO. : 3011760093
CAPITAL REGISTERED : BHT. 50,000,000
CAPITAL PAID-UP : BHT.
50,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. GURBAKSHISHSINGH SINGHNARULA,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 12
LINES
OF BUSINESS : TEXTILES
IMPORTER, DISTRIBUTOR
& 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 August 29,
1996 as a
private limited company
under the registered
name RIKHITEX [AWTAR
NIWAS] CO., LTD., by
Thai group, with
the business objective to
import, distribute and
export various kinds
of textiles. It
currently employs 12
staff.
The
subject’s registered address
is 78A, 4th Floor,
Anuwong Road, Chakrawat,
Samphantawong, Bangkok 10100,
and this is the
subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Gurbakshishsingh
Singhnarula |
|
Thai |
64 |
|
Mrs. Amrit Kaur Singhnarula |
|
Thai |
60 |
|
Mr. Preeda Singhnarula |
|
Thai |
31 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Gurbakshishsingh Singhnarula is
the Managing Director.
He is Thai
nationality with the
age of 64
years old.
Mr. Preeda Singhnarula is
the General Manager.
He is Thai
nationality with the
age of 31 years
old.
BUSINESS OPERATIONS
The subject
is engaged in
importing, distributing and
re-exporting various kinds
of textiles such as grey fabric, printed
fabric, denim fabric, yarn dyed/piece dyed, embroidery & lace, polyester & 100% polyester
taffeta, cotton fabric, rayon
fabric and silk fabric,
as well as
exporting the local
products.
PURCHASE
Its products are
purchased from both
domestic and overseas
suppliers in India,
Republic of China,
Australia and Indonesia.
MAJOR SUPPLIER
The
Thai Silk Co.,
Ltd. : Thailand
Luckytex
[Thailand] Public Company
Limited : Thailand
Jongstit
Co., Ltd. : Thailand
SALES
Its products are
sold by wholesale
to both local
and overseas customers
in U.S.A., Japan,
Italy, Germany, France,
India, Indonesia, Korea,
Hong Kong, Republic of
China, Malaysia and
the countries in Middle East.
RELATED AND
AFFILIATED COMPANY
Rikhitex Resources Co.,
Ltd.
Business Type : Textile
trading business
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
12 staff.
LOCATION DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in commercial area.
Showroom
and warehouse is
located at 205, 207
Soi Charoennakorn 10, Charoennakorn Road,
Klongtonsai, Klongsan, Bangkok
10600.
COMMENT
The
subject’s operating performance
in 2014 was
satisfactory with an
increase in both
sales revenues and
net profit comparing
to the previous
year. This was mainly due
to the company's effective
marketing expansion in
overseas countries which
contributed to an
increase in number
of orders and
sales revenues. Generally,
its business is
promising and growing considerably.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 6,000,000
divided into 60,000
shares of Bht.
100
each
with fully paid.
The
capital was increased
later as follows:
Bht. 15,000,000
on November 28,
2000
Bht. 25,000,000
on December 29,
2005
Bht. 30,000,000
on April 22,
2011
Bht. 50,000,000
on September 17,
2014
The
latest registered capital
was increased to
Bht. 50,000,000 divided into 500,000
shares of Bht. 100
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE
[as at
April 30, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Gurbakshishsingh
Singhnarula Nationality: Thai Address : 20/2
Soi Sukhumvit 34,
Klongton,
Klongtoey, Bangkok |
249,984 |
50.00 |
|
Mr. Preeda Singhnarula Nationality: Thai Address : 20/2
Soi Sukhumvit 34,
Klongton,
Klongtoey, Bangkok |
175,000 |
35.00 |
|
Mrs. Amrit Kaur Singhnarula Nationality: Thai Address : 20/2
Soi Sukhumvit 34,
Klongton,
Klongtoey, Bangkok |
75,000 |
15.00 |
|
Ms. Narisa Singhnarula Nationality: Thai Address : 20/2
Soi Sukhumvit 34,
Klongton,
Klongtoey, Bangkok |
16 |
- |
Total Shareholders : 4
Share Structure [as
at April 30,
2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
500,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
4 |
500,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mrs. Yajai Jinnikorn No.
1167
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 |
274,058.05 |
378,418.71 |
255,833.39 |
|
Trade Accounts & Other
Receivable |
138,542,694.26 |
136,971,850.87 |
81,117,504.10 |
|
Inventories |
131,714,882.16 |
51,110,082.34 |
92,695,086.37 |
|
|
|
|
|
|
Total Current Assets
|
270,531,634.47 |
188,460,351.92 |
174,068,423.86 |
|
|
|
|
|
|
Fixed Assets |
4,950,815.72 |
7,252,177.42 |
6,292,291.41 |
|
Other Non-current Assets |
613,800.00 |
613,800.00 |
613,800.00 |
|
Total Assets |
276,096,250.19 |
196,326,329.34 |
180,974,515.27 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
172,115,620.18 |
122,293,266.83 |
118,578,236.87 |
|
Trade Accounts & Other
Payable |
28,934,925.05 |
30,303,424.15 |
19,666,005.17 |
|
Current Portion of
Hire-purchase Payable |
872,534.88 |
1,678,756.23 |
1,120,349.38 |
|
Accrued Income Tax |
445,775.41 |
467,463.34 |
365,007.57 |
|
|
|
|
|
|
Total Current Liabilities |
202,368,855.52 |
154,742,910.55 |
139,729,598.99 |
|
Long-term Loans |
11,400,000.00 |
1,000,000.00 |
3,000,000.00 |
|
Hire-purchase Payable |
791,524.35 |
1,664,059.23 |
1,497,914.70 |
|
Total Liabilities |
214,560,379.87 |
157,406,969.78 |
144,227,513.69 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized and
issued share capital
500,000 shares in
2014 |
50,000,000.00 |
|
|
|
300,000 shares in
2013 & 2012 |
|
30,000,000.00 |
30,000,000.00 |
|
|
|
|
|
|
Capital Paid |
50,000,000.00 |
30,000,000.00 |
30,000,000.00 |
|
Retained Earning Unappropriated |
11,535,870.32 |
8,919,359.56 |
6,747,001.58 |
|
Total Shareholders' Equity |
61,535,870.32 |
38,919,359.56 |
36,747,001.58 |
|
Total Liabilities & Shareholders' Equity |
276,096,250.19 |
196,326,329.347 |
180,974,515.27 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
448,734,393.99 |
360,017,154.34 |
283,695,352.48 |
|
Other Income |
1,275,000.00 |
1,097,474.64 |
3,154,933.87 |
|
Total Revenues |
450,009,393.99 |
361,114,628.98 |
286,850,286.35 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
430,710,881.53 |
344,679,684.41 |
271,536,453.30 |
|
Selling Expenses |
1,701,428.50 |
1,473,543.04 |
1,794,562.68 |
|
Administrative Expenses |
8,085,338.58 |
7,534,737.13 |
5,725,204.35 |
|
Total Expenses |
440,497,648.61 |
353,687,964.58 |
279,056,220.33 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
9,511,745.38 |
7,426,664.40 |
7,794,066.02 |
|
Financial Cost |
[6,000,259.21] |
[4,439,643.08] |
[5,444,236.36] |
|
Profit / [Loss] before Income
Tax |
3,511,486.17 |
2,987,021.32 |
2,349,829.66 |
|
Income Tax |
[894,975.41] |
[814,663.34] |
[721,628.57] |
|
|
|
|
|
|
Net Profit / [Loss] |
2,616,510.76 |
2,172,357.98 |
1,628,201.09 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.34 |
1.22 |
1.25 |
|
QUICK RATIO |
TIMES |
0.69 |
0.89 |
0.58 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
90.64 |
49.64 |
45.09 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.63 |
1.83 |
1.57 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
111.62 |
54.12 |
124.60 |
|
INVENTORY TURNOVER |
TIMES |
3.27 |
6.74 |
2.93 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
112.69 |
138.87 |
104.37 |
|
RECEIVABLES TURNOVER |
TIMES |
3.24 |
2.63 |
3.50 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
24.52 |
32.09 |
26.44 |
|
CASH CONVERSION CYCLE |
DAYS |
199.79 |
160.90 |
202.53 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
95.98 |
95.74 |
95.71 |
|
SELLING & ADMINISTRATION |
% |
2.18 |
2.50 |
2.65 |
|
INTEREST |
% |
1.34 |
1.23 |
1.92 |
|
GROSS PROFIT MARGIN |
% |
4.30 |
4.57 |
5.40 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.12 |
2.06 |
2.75 |
|
NET PROFIT MARGIN |
% |
0.58 |
0.60 |
0.57 |
|
RETURN ON EQUITY |
% |
4.25 |
5.58 |
4.43 |
|
RETURN ON ASSET |
% |
0.95 |
1.11 |
0.90 |
|
EARNING PER SHARE |
BAHT |
5.23 |
7.24 |
5.43 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.78 |
0.80 |
0.80 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.49 |
4.04 |
3.92 |
|
TIME INTEREST EARNED |
TIMES |
1.59 |
1.67 |
1.43 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
24.64 |
26.90 |
|
|
OPERATING PROFIT |
% |
28.08 |
(4.71) |
|
|
NET PROFIT |
% |
20.45 |
33.42 |
|
|
FIXED ASSETS |
% |
(31.73) |
15.25 |
|
|
TOTAL ASSETS |
% |
40.63 |
8.48 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 24.64%. Turnover has increased from THB
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
4.30 |
Deteriorated |
Industrial
Average |
14.05 |
|
Net Profit Margin |
0.58 |
Acceptable |
Industrial
Average |
1.05 |
|
Return on Assets |
0.95 |
Acceptable |
Industrial
Average |
1.65 |
|
Return on Equity |
4.25 |
Satisfactory |
Industrial
Average |
4.68 |
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 4.3%. 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 0.58%.
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 0.95%.
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 4.25%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.34 |
Satisfactory |
Industrial
Average |
1.71 |
|
Quick Ratio |
0.69 |
|
|
|
|
Cash Conversion Cycle |
199.79 |
|
|
|
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 1.34 times in 2014, increase from 1.22 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 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 0.69 times in 2014,
decrease from 0.89 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 200 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.78 |
Acceptable |
Industrial Average |
0.61 |
|
Debt to Equity Ratio |
3.49 |
Risky |
Industrial
Average |
1.59 |
|
Times Interest Earned |
1.59 |
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 1.59 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 0.78 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 |
90.64 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.63 |
Impressive |
Industrial
Average |
1.57 |
|
Inventory Conversion Period |
111.62 |
|
|
|
|
Inventory Turnover |
3.27 |
Satisfactory |
Industrial
Average |
4.31 |
|
Receivables Conversion Period |
112.69 |
|
|
|
|
Receivables Turnover |
3.24 |
Impressive |
Industrial
Average |
2.85 |
|
Payables Conversion Period |
24.52 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.24 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 54 days at the
end of 2013 to 112 days at the end of 2014. This represents a negative trend.
And Inventory turnover has decreased from 6.74 times in year 2013 to 3.27 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.63 times and 1.83
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.66.38 |
|
|
1 |
Rs.100.45 |
|
Euro |
1 |
Rs.70.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
HEE |
|
|
|
|
Report Prepared
by : |
TRU |
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.