|
|
|
MIRA INFORM REPORT
|
Report No. : |
501278 |
|
Report Date : |
09.04.2018 |
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 : |
16.02.2001 |
|
|
|
|
Com. Reg. No.: |
0105544016011 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject is engaged
in manufacturing, distributing and
exporting nylon yarns
and polyester yarns
for textile industry. |
|
|
|
|
No. of Employees : |
170 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
C |
|
Credit Rating |
Explanation |
Rating Comments |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
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
|
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@asiaindtex.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
AND FACTORY MANAGER
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 |
54 |
|
Mr. Narinder Singh Kukreja |
|
Thai |
57 |
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 and Factory
Manager.
He is Thai
nationality with the age of
57 years old.
Mrs. Vanida Kukreja is
the Deputy Managing
Director and Administration Manager.
She is Thai
nationality with the
age of 54
years old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing, distributing
and exporting 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,
Australia and Germany.
MAJOR SUPPLIERS
Inabata Thai Co.,
Ltd. : Thailand
IRPC Public Company
Limited : Thailand
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 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
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 : 95/3
Intrawas Road, Bangramad,
Talingchan, Bangkok |
415,000 |
27.66 |
|
Mr. Angard Bucci Nationality: Indian Address : 95/2
Intrawas Road, Bangramad,
Talingchan, Bangkok |
100,000 |
6.67 |
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
BALANCE SHEET [BAHT]
The 2017 financial
statement has not
been submitted to the
Commercial Registration Department.
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
par 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
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
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 64.98 |
|
|
1 |
INR 90.95 |
|
Euro |
1 |
INR 79.51 |
|
Thai Baht |
1 |
INR 2.08 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VAR |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.