MIRA INFORM REPORT

Report No. :	501278
Report Date :	06.04.2018

IDENTIFICATION DETAILS

Name :	ASIA INDUSTRIAL TEXTILE CO., LTD.
Registered Office :	123 Moo 10, T. Lumpaya, A. Banlen, Nakornpathom 73130,
Country :	Thailand
Financials (as on) :	31.12.2016
Date of Incorporation :	26.02.2001
Com. Reg. No.:	0105544016011
Legal Form :	Private Limited Company
Line of Business :	The subject is engaged in manufacturing, distributing and exporting of nylon yarns and polyester yarns for textile industry.
No. of Employees :	170

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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Thailand	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

THAILAND - ECONOMIC OVERVIEW

With a relatively well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, Thailand is highly dependent on international trade, with exports accounting for about two-thirds of GDP. Thailand’s exports include electronics, agricultural commodities, automobiles and parts, and processed foods. The industry and service sectors produce about 90% of GDP. The agricultural sector, comprised mostly of small-scale farms, contributes only 10% of GDP but employs about one-third of the labor force. Thailand has attracted an estimated 3.0-4.5 million migrant workers, mostly from neighboring countries.

Over the last few decades, Thailand has reduced poverty substantially. In 2013, the Thai Government implemented a nationwide 300 baht (roughly $10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners.

Thailand’s economy is recovering from slow growth during the years since the 2014 coup. Thailand’s economic fundamentals are sound, with low inflation, low unemployment, and reasonable public and external debt levels. Tourism and government spending - mostly on infrastructure and short-term stimulus measures – have helped to boost the economy, and The Bank of Thailand has been supportive, with several interest rate reductions.

Over the longer-term, household debt levels, political uncertainty, and an aging population pose risks to growth.

Source : CIA

company name

ASIA INDUSTRIAL TEXTILE CO., LTD.

SUMMARY

BUSINESS ADDRESS : 123 MOO 10, T. LUMPAYA, A. BANLEN,

NAKORNPATHOM 73130, THAILAND

TELEPHONE : [66] 34 276-100, 34 276-681-6, 34 276-649-51

FAX : [66] 34 276-645

E-MAIL ADDRESS : ab@123ait.com

sales@asiaindex.com

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2001

REGISTRATION NO. : 0105544016011

TAX ID NO. : 3030227522

CAPITAL REGISTERED : BHT. 150,000,000

CAPITAL PAID-UP : BHT. 150,000,000

SHAREHOLDER’S PROPORTION : THAI : 93.33%

INDIAN : 6.67%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. NARINDER SINGH KUKREJA, THAI

MANAGING DIRECTOR

NO. OF STAFF : 170

LINES OF BUSINESS : YARNS

MANUFACTURER, DISTRIBUTOR 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 February 16, 2001 as a private limited company under the originally registered name “G.T. Industrial Fibre Co., Ltd.”, by Thai group. On January 12, 2010, its registered name was changed to ASIA INDUSTRIAL TEXTILE CO., LTD. Its business objective is to manufacture and distribute yarns to both domestic and international markets. It currently employs approximately 170 staff.

The subject’s registered address is 123 Moo 10, T. Lumpaya, A. Banlen, Nakornpathom 73130, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name	Nationality	Age
Mrs. Vanida Kukreja	Thai	53
Mr. Narinder Singh Kukreja	Thai	56

AUTHORIZED PERSON

One of the above directors can sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Narinder Singh Kukreja is the Managing Director/ Factory Manager.

He is Thai nationality with the age of 56 years old.

Mrs. Vanida Kukreja is the Deputy Managing Director/ Administration Manager.

She is Thai nationality with the age of 53 years old.

BUSINESS OPERATIONS

The subject is engaged in manufacturing, distributing and exporting of nylon yarns and polyester yarns for textile industry.

PURCHASE

Raw materials such as plastic resin and chemical are purchased from suppliers both domestic and overseas in Republic of China, India and Germany.

SALES

80% of the products is sold locally to manufactures and end-users, the remaining 20% is exported to India, Japan, U.S.A., Australia, Indonesia, Malaysia and the countries in Europe.

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 for 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.

BANKING

Bangkok Bank Public Company Limited

Indian Overseas Bank Public Company Limited

EMPLOYMENT

The subject employs approximately 170 staff.

LOCATION DETAILS

The premise is owned for administrative office, factory and warehouse at the heading address. Premise is located in provincial.

Branch office is located at 95 Intrawas Road, Bangramad, Talingchan, Bangkok 10170.

COMMENT

The subject’s operating performance during the past few years was slow with a decrease in sales revenues and three consecutive years of net loss. Moreover, the subject has obtained a large amount of retained earning deficit which would more or less affect on its normal business operation. Generally, the subject would encounter slow growth in relation to a slowdown of related industries.

FINANCIAL INFORMATION

The capital was registered at Bht. 4,000,000 divided into 40,000 shares of Bht. 100

each with fully paid.

The capital was increased later as follows:

Bht. 20,000,000 on January 12, 2010

Bht. 40,000,000 on August 27, 2010

Bht. 60,000,000 on December 16, 2010

Bht. 110,000,000 on September 13, 2012

Bht. 150,000,000 on March 8, 2013

The latest registered capital was increased to Bht. 150,000,000 divided into 1,500,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at April 28, 2017]

NAME	HOLDING	%
Mr. Narinder Singh Kukreja Nationality: Thai Address : 95/3 Intrawas Road, Bangramad, Talingchan, Bangkok	567,000	37.80
Ms. Jaskiran Kukreja Nationality: Thai Address : 95/2 Intrawas Road, Bangramad, Talingchan, Bangkok	418,000	27.87
Mrs. Vanida Kukreja Nationality: Thai Address : 95/2 Intrawas Road, Bangramad, Talingchan, Bangkok	415,000	27.67
Mr. Angard Bucci Nationality: Indian Address : 95/2 Intrawas Road, Bangramad, Talingchan, Bangkok	100,000	6.66

Total Shareholders : 4

Share Structure [as at April 28, 2017]

Nationality	Shareholders	No. of Share	% Shares
Thai	3	1,400,000	93.33
Foreign-Indian	1	100,000	6.67
Total	4	1,500,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Mr. Rattanachai Chorpaka No. 8513

Financials

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2016, 2015 and 2014 were:

ASSETS

Current Assets	2016	2015	2014
Cash and Cash Equivalents	79,683.04	140,117.58	148,825.37
Short-term Investment	2,211,064.66	2,153,281.66	2,092,483.74
Trade Accounts and Other Receivable	14,940,331.49	21,120,237.82	3,927,544.38
Inventories	45,329,797.89	59,470,832.12	56,745,811.32
Other Current Assets	11,910,435.60	20,154,011.69	16,359,103.98
Total Current Assets	74,471,312.68	103,038,480.87	79,273,768.79
Property, Plant and Equipment	443,487,310.11	436,647,322.57	417,383,705.99
Total Assets	517,958,622.79	539,685,803.44	496,657,474.78

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2016	2015	2014
Bank Overdraft and Short-term Loans from Financial Institutions	26,870,123.31	10,720,449.79	4,352,723.82
Trade Accounts and Other Payable	4,517,820.10	7,193,297.46	7,205,103.55
Current Portion of Hire-purchase Payable	146,904.00	146,904.00	-
Other Current Liabilities	2,013,243.23	2,120,476.52	1,177,573.80
Total Current Liabilities	33,548,090.67	20,181,127.77	12,735,401.17
Hire-purchase Payable, Net	368,355.86	631,354.26	351,775,598.92
Long-term Loan from Financial Institutions	187,115,749.22	219,208,518.57	-
Long-term Loan from Related Person	207,551,233.67	181,120,568.49	-
Other Non-current Liabilities	-	-	882,358.00
Total Liabilities	428,583,429.42	421,141,569.09	365,393,358.09
Shareholders’ Equity
Share capital : Baht 100 value authorized, and issued share capital 1,500,000 shares	150,000,000.00	150,000,000.00	150,000,000.00
Capital Paid	150,000,000.00	150,000,000.00	150,000,000.00
Retained Earning -Unappropriated [Deficit]	[60,624,806.63]	[31,455,765.65]	[18,735,883.31]
Total Shareholders’ Equity	89,375,193.37	118,544,234.35	131,264,116.69
Total Liabilities and Shareholders’ Equity	517,958,622.79	539,685,803.44	496,657,474.78

PROFIT & LOSS ACCOUNT

Revenue	2016	2015	2014
Sales Income	67,164,187.00	68,672,607.75	37,710,814.19
Services Income	632,216.00	582,377.55	-
Other Income	1,355,954.09	757,419.61	1,191,974.41
Total Revenues	69,152,357.09	70,012,404.91	38,902,788.60
Expenses
Cost of Goods Sold	76,023,501.64	62,153,291.16	29,567,160.53
Administrative Expenses	17,423,169.26	18,519,401.19	10,315,956.02
Total Expenses	93,446,670.90	80,672,692.35	39,883,116.55
Profit /[Loss] before Financial Cost	[24,294,313.81]	[10,660,287.44]	[980,327.95]
Financial Cost	[3,450,572.87]	[2,059,594.90]	[899,373.09]
Net Profit / [Loss]	[27,744,886.68]	[12,719,882.34]	[1,879,701.04]

FINANCIAL ANALYSIS

ITEM	UNIT	2016	2015	2014
LIQUIDITY RATIO
CURRENT RATIO	TIMES	2.22	5.11	6.22
QUICK RATIO	TIMES	0.51	1.16	0.48
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	0.15	0.16	0.09
TOTAL ASSETS TURNOVER	TIMES	0.13	0.13	0.08
INVENTORY CONVERSION PERIOD	DAYS	217.64	349.25	700.51
INVENTORY TURNOVER	TIMES	1.68	1.05	0.52
RECEIVABLES CONVERSION PERIOD	DAYS	80.44	111.31	38.01
RECEIVABLES TURNOVER	TIMES	4.54	3.28	9.60
PAYABLES CONVERSION PERIOD	DAYS	21.69	42.24	88.95
CASH CONVERSION CYCLE	DAYS	276.38	418.32	649.58
PROFITABILITY RATIO
COST OF GOODS SOLD	%	112.14	89.75	78.40
SELLING & ADMINISTRATION	%	25.70	26.74	27.36
INTEREST	%	5.09	2.97	2.38
GROSS PROFIT MARGIN	%	(10.13)	11.35	24.76
NET PROFIT MARGIN BEFORE EX. ITEM	%	(35.83)	(15.39)	(2.60)
NET PROFIT MARGIN	%	(40.92)	(18.37)	(4.98)
RETURN ON EQUITY	%	(31.04)	(10.73)	(1.43)
RETURN ON ASSET	%	(5.36)	(2.36)	(0.38)
EARNING PER SHARE	BAHT	(18.50)	(8.48)	(1.25)
LEVERAGE RATIO
DEBT RATIO	TIMES	0.83	0.78	0.74
DEBT TO EQUITY RATIO	TIMES	4.80	3.55	2.78
TIME INTEREST EARNED	TIMES	(7.04)	(5.18)	(1.09)
ANNUAL GROWTH
SALES GROWTH	%	(2.11)	83.65
OPERATING PROFIT	%	127.90	987.42
NET PROFIT	%	(118.12)	(576.70)
FIXED ASSETS	%	1.57	4.62
TOTAL ASSETS	%	(4.03)	8.66

ANNUAL GROWTH : ACCEPTABLE

An annual sales growth is -2.11%. Turnover has decreased from THB 69,254,985.30 in 2015 to THB 67,796,403.00 in 2016. While net profit has decreased from THB -12,719,882.34 in 2015 to THB -27,744,886.68 in 2016. And total assets has decreased from THB 539,685,803.44 in 2015 to THB 517,958,622.79 in 2016.

PROFITABILITY : RISKY

PROFITABILITY RATIO

Gross Profit Margin	(10.13)	Deteriorated	Industrial Average	-
Net Profit Margin	(40.92)	Deteriorated	Industrial Average	(0.41)
Return on Assets	(5.36)	Deteriorated	Industrial Average	(0.41)
Return on Equity	(31.04)	Deteriorated	Industrial Average	(0.87)

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 -10.13%. 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 -40.92%. 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 -5.36%.

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 -31.04%.

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	2.22	Impressive	Industrial Average	0.70
Quick Ratio	0.51
Cash Conversion Cycle	276.38

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 2.22 times in 2016, decrease from 5.11 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 0.51 times in 2016, decrease from 1.16 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 277 days.

Trend of the average competitors in the same industry for last 5 years

Current Ratio Downtrend

LEVERAGE : RISKY

LEVERAGE RATIO

Debt Ratio	0.83	Acceptable	Industrial Average	0.55
Debt to Equity Ratio	4.80	Risky	Industrial Average	1.23
Times Interest Earned	(7.04)	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 -7.05 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 0.83 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 : ACCEPTABLE

ACTIVITY RATIO

Fixed Assets Turnover	0.15	Impressive	Industrial Average	-
Total Assets Turnover	0.13	Deteriorated	Industrial Average	1.02
Inventory Conversion Period	217.64
Inventory Turnover	1.68	Deteriorated	Industrial Average	6.79
Receivables Conversion Period	80.44
Receivables Turnover	4.54	Satisfactory	Industrial Average	6.64
Payables Conversion Period	21.69

The company's Account Receivable Ratio is calculated as 4.54 and 3.28 in 2016 and 2015 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 2016 increased from 2015. This would suggest the company had good performance 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 decreased from 349 days at the end of 2015 to 218 days at the end of 2016. This represents a positive trend. And Inventory turnover has increased from 1.05 times in year 2015 to 1.68 times in year 2016.

The company's Total Asset Turnover is calculated as 0.13 times and 0.13 times in 2016 and 2015 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 Uptrend

Inventory Turnover Uptrend

Receivables Turnover Uptrend

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 65.06
UK Pound	1	INR 91.50
Euro	1	INR 79.78
THB	1	INR 2.08

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Report Prepared by :

KET

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