|
|
|
MIRA INFORM REPORT
|
Report No. : |
488780 |
|
Report Date : |
02.02.2018 |
IDENTIFICATION DETAILS
|
Name : |
TEXTILE CENTRAL CO., LTD. |
|
|
|
|
Registered Office : |
109/34 Moo 1, T. Donkaidee, A. Krathumban, Samutsakorn 74110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2016 |
|
|
|
|
Date of Incorporation : |
27.08.2014 |
|
|
|
|
Com. Reg. No.: |
0745557004738 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
The subject is
engaged in importing,
distributing and re-exporting new
and used textile
machinery, equipment and
spare parts, as
well as exporting
used textile machinery.
The subject also provides
after sales services. |
|
|
|
|
No. of Employees : |
15 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
No Complaints |
|
|
|
|
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 (30.06.2017) |
Current Rating (30.09.2017) |
|
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 and address
TEXTILE
CENTRAL CO., LTD.
SUMMARY
BUSINESS ADDRESS : 109/34 MOO 1, T.
DONKAIDEE, A. KRATHUMBAN,
SAMUTSAKORN 74110,
THAILAND
TELEPHONE : [66] 34
440-890
FAX : [66] 34
440-090
E-MAIL ADDRESS : warat@texcoms.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2014
REGISTRATION NO. : 0745557004738
TAX ID NO. : 3036612032
CAPITAL REGISTERED : BHT.
8,000,000
CAPITAL PAID-UP : BHT.
8,000,000
SHAREHOLDER’S PROPORTION : THAI
: 55.00%
INDIAN
: 45.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. BALAJI SOUNDARARAJAN, INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 15
LINES OF BUSINESS : TEXTILE MACHINERY, EQUIPMENT
AND SPARE
PARTS
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE
PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH GOOD PERFORMANCE
HISTORY
The subject was
established on August
27, 2014 as
a private limited
company under the
registered name TEXTILE
CENTRAL CO., LTD., by
Thai and Indian
groups, with the business objective
to import, distribute
and export textile
machinery, equipment and
spare parts. It
currently employs approximately
15 staff.
The subject’s registered
address is 109/34
Moo 1, T.
Donkaidee, A. Krathumban,
Samutsakorn 74110, and
this is the
subject’s current operation
address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Prasit
Darakai |
|
Thai |
41 |
|
Mr. Balaji
Soundararajan |
|
Indian |
44 |
|
Mr. Suresh
Appiyaradhakrishnan |
|
Indian |
55 |
|
Mr. Babu
Murugan |
|
Indian |
29 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Balaji Soundararajan is
the Managing Director.
He is Indian
nationality with the
age of 44
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing,
distributing and re-exporting
new and used
textile machinery, equipment
and spare parts,
as well as
exporting used textile
machinery. The subject
also provides after
sales services.
PURCHASE
The products are
purchased from both
domestic and overseas
suppliers in India,
Taiwan, Republic of
China and Malaysia.
SALES [LOCAL]
The products are
sold locally to
manufacturer and end-users.
EXPORT
The products are
also exported and
re-exported to India,
Indonesia and Vietnam.
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 IRICO’S
DATABASE 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.
Imports are by
T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Company Limited
EMPLOYMENT
The subject currently
employs 15 staff.
LOCATION DETAILS
The premise is
rented for administrative office,
workshop and warehouse
at the heading
address. Premise is
located in provincial.
COMMENT
The subject’s operating
performance in 2016
has seen an
improvement with an
increase in both sales
or service income
and net profit
comparing to the previous
year. This was
mainly due to effective
market expansion on
the customers’ base
of both local
and overseas countries
in the past year.
Generally, the subject’s business
is promising and
growing moderately.
FINANCIAL
INFORMATION
The capital was
registered at Bht.
1,000,000 divided into
10,000 shares of
Bht. 100 each
with fully paid.
The capital was
increased later as
follows:
Bht. 4,000,000
on April 8,
2015
Bht. 6,000,000
on January 14,
2016
Bht. 8,000,000
on July 21,
2016
The latest registered
capital was increased
to Bht. 8,000,000
divided into 80,000
shares of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED
WERE : [as
at November 8,
2017]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Balaji
Soundararajan Nationality: Indian Address
: 109/34 Moo
1, T. Donkaidee, A. Krathumban,
Samutsakorn |
24,000 |
30.00 |
|
Mr. Prasit
Darakai Nationality: Thai Address
: 30/2 Asia
Road, T.Phosadej, A. Muang,
Nakornsrithammaraj |
20,000 |
25.00 |
|
Mr. Poonsak
Kwanmuang Nationality: Thai Address
: 10/208 Moo
3, T. Bangmuang, A. Muang,
Samutprakarn |
12,000 |
15.00 |
|
Ms. Varat
Khailoom Nationality: Thai Address
: 110/1 Moo
1, T. Bankoh, A. Muang,
Samutsakorn |
12,000 |
15.00 |
|
Mr. Babu
Murugan Nationality: Indian Address
: 109/34 Moo
1, T. Donkaidee, A. Krathumban,
Samutsakorn |
12,000 |
15.00 |
Total Shareholders : 5
Share Structure [as
at November 8,
2017]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
44,000 |
55.00 |
|
Foreign - Indian |
2 |
36,000 |
45.00 |
|
Total |
5 |
80,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Aree Chuenchewaphati No.
7118
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 |
778,110.33 |
4,796,408.03 |
1,170,457.60 |
|
Trade
Accounts and Other
Receivable |
13,860,765.18 |
10,123,249.69 |
4,917,000.00 |
|
Inventories |
38,933,587.19 |
31,646,923.28 |
3,121,415.85 |
|
Prepaid expenses - Goods change |
- |
8,702,354.57 |
3,159,664.20 |
|
Other Current Assets |
- |
3,694,018.42 |
557,004.41 |
|
Total
Current Assets |
53,572,462.70 |
58,962,953.99 |
12,925,542.06 |
|
|
|
|
|
|
Property, Plant and Equipment |
1,105,387.01 |
411,617.40 |
- |
|
Total
Assets |
54,677,849.71 |
59,374,571.39 |
12,925,542.06 |
LIABILITIES & SHAREHOLDERS' EQUITY
[BAHT]
|
Current Liabilities |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Trade Accounts and Other Payable |
44,079,483.56 |
20,283,165.22 |
- |
|
Current Portion of Long-term Liabilities |
93,800.00 |
- |
- |
|
Accrued Income Tax |
267,325.07 |
387,168.86 |
- |
|
Advance Payment |
- |
33,084,985.28 |
11,473,000.00 |
|
Other Current Liabilities |
- |
1,142,449.82 |
363,792.74 |
|
Total Current Liabilities |
44,440,608.63 |
54,897,769.18 |
11,836,792.74 |
|
|
|
|
|
|
Other Non-current Liabilities |
453,366.60 |
- |
- |
|
Total
Liabilities |
44,893,975.23 |
54,897,769.18 |
11,836,792.74 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share
capital : Baht 100 par
value
authorized, and issued
share capital
80,000 shares in
2016 |
8,000,000.00 |
|
|
|
40,000 shares in
2015 |
|
4,000,000.00 |
|
|
10,000 shares in
2014 |
|
|
1,000,000.00 |
|
Capital
Paid |
8,000,000.00 |
4,000,000.00 |
1,000,000.00 |
|
Retained Earning -Unappropriated
[Deficit] |
1,783,874.48 |
476,802.21 |
88,749.32 |
|
Total
Shareholders’ Equity |
9,783,874.48 |
4,476,802.21 |
1,088,749.32 |
|
Total
Liabilities and Shareholders’
Equity |
54,677,849.71 |
59,374,571.39 |
12,925,542.06 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Sales
or Services Income |
75,469,079.09 |
35,979,186.25 |
4,908,000.00 |
|
Interest Income |
5,477.97 |
1,188.63 |
366.04 |
|
Gain on Exchange Rate |
- |
- |
30,779.22 |
|
Other
Income |
1,281,095.08 |
- |
- |
|
Total
Revenues |
76,755,652.14 |
35,980,374.88 |
4,939,145.26 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost
of Goods Sold
or Services |
70,055,473.11 |
32,068,831.97 |
4,780,650.00 |
|
Selling
Expenses |
853,404.33 |
154,961.51 |
- |
|
Administrative Expenses |
4,004,726.72 |
1,873,132.23 |
69,745.94 |
|
Loss
on Exchange Rate |
- |
1,108,227.42 |
- |
|
Total Expenses |
74,913,604.16 |
35,205,153.13 |
4,850,395.94 |
|
|
|
|
|
|
Profit
/[Loss] before Financial Cost and
Income Tax |
1,842,047.98 |
775,221.75 |
88,749.32 |
|
Financial Cost |
[2,908.60] |
- |
- |
|
|
|
|
|
|
Profit /[Loss] before
Income Tax |
1,839,139.38 |
775,221.75 |
88,749.32 |
|
Income
Tax |
[532,067.11] |
[387,168.86] |
- |
|
Net
Profit / [Loss] |
1,307,072.27 |
388,052.89 |
88,749.32 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.21 |
1.07 |
1.09 |
|
QUICK RATIO |
TIMES |
0.33 |
0.43 |
0.78 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
68.27 |
87.41 |
- |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.38 |
0.61 |
0.38 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
202.85 |
360.20 |
238.32 |
|
INVENTORY TURNOVER |
TIMES |
1.80 |
1.01 |
1.53 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
67.04 |
102.70 |
365.67 |
|
RECEIVABLES TURNOVER |
TIMES |
5.44 |
3.55 |
1.00 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
229.66 |
230.86 |
- |
|
CASH CONVERSION CYCLE |
DAYS |
40.23 |
232.04 |
603.99 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
92.83 |
89.13 |
97.41 |
|
SELLING & ADMINISTRATION |
% |
6.44 |
5.64 |
1.42 |
|
INTEREST |
% |
0.00 |
- |
- |
|
GROSS PROFIT MARGIN |
% |
8.88 |
10.87 |
3.23 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.44 |
2.15 |
1.81 |
|
NET PROFIT MARGIN |
% |
1.73 |
1.08 |
1.81 |
|
RETURN ON EQUITY |
% |
13.36 |
8.67 |
8.15 |
|
RETURN ON ASSET |
% |
2.39 |
0.65 |
0.69 |
|
EARNING PER SHARE |
BAHT |
16.34 |
9.70 |
8.87 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.82 |
0.92 |
0.92 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.59 |
12.26 |
10.87 |
|
TIME INTEREST EARNED |
TIMES |
633.31 |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
109.76 |
633.07 |
|
|
OPERATING PROFIT |
% |
137.62 |
773.50 |
|
|
NET PROFIT |
% |
236.83 |
337.25 |
|
|
FIXED ASSETS |
% |
168.55 |
- |
|
|
TOTAL ASSETS |
% |
(7.91) |
359.36 |
|
ANNUAL GROWTH : IMPRESSIVE
An annual sales growth is 109.76%. Turnover has increased from THB
PROFITABILITY : SATISFACTORY
PROFITABILITY RATIO
|
Gross Profit Margin |
8.88 |
Deteriorated |
Industrial Average |
37.80 |
|
Net Profit Margin |
1.73 |
Satisfactory |
Industrial Average |
3.12 |
|
Return on Assets |
2.39 |
Satisfactory |
Industrial Average |
3.10 |
|
Return on Equity |
13.36 |
Impressive |
Industrial Average |
6.50 |
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 8.88%. 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 1.73%.
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 2.39%.
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 13.36%, 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 : ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.21 |
Satisfactory |
Industrial Average |
1.59 |
|
Quick Ratio |
0.33 |
|
|
|
|
Cash Conversion Cycle |
40.23 |
|
|
|
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 1.21 times in 2016, increase from 1.07 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 0.33 times in 2016,
decrease from 0.43 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 41 days.
Trend of the average competitors in the same industry for last 5
years
Current Ratio Downtrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.82 |
Acceptable |
Industrial Average |
0.52 |
|
Debt to Equity Ratio |
4.59 |
Risky |
Industrial Average |
1.10 |
|
Times Interest Earned |
633.31 |
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 633.32 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 0.82 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 : IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
68.27 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.38 |
Impressive |
Industrial Average |
0.99 |
|
Inventory Conversion Period |
202.85 |
|
|
|
|
Inventory Turnover |
1.80 |
Satisfactory |
Industrial Average |
2.37 |
|
Receivables Conversion Period |
67.04 |
|
|
|
|
Receivables Turnover |
5.44 |
Impressive |
Industrial Average |
3.15 |
|
Payables Conversion Period |
229.66 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.44 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 360 days at the
end of 2015 to 203 days at the end of 2016. This represents a positive trend.
And Inventory turnover has increased from 1.01 times in year 2015 to 1.8 times
in year 2016.
The company's Total Asset Turnover is calculated as 1.38 times and
0.61 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 Downtrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 63.61 |
|
|
1 |
INR 89.32 |
|
Euro |
1 |
INR 78.95 |
|
THB |
1 |
INR 2.04 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
KET |
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.