MIRA
INFORM REPORT
|
Report Date : |
23.01.2008 |
IDENTIFICATION
DETAILS
|
Name : |
ARLO
CO., LTD. |
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Registered Office : |
79-79/1-2
Soi Anumarn Rajathon,
Dejo Road, Suriyawongse, Bangrak,
Bangkok 10500 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
24.02.1988 |
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Com. Reg. No.: |
0105531013310 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Jewelry
Products Manufacturer and Exporter |
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 |
name of the company
ARLO CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 79-79/1-2 SOI ANUMARN RAJATHON,
DEJO ROAD,
SURIYAWONGSE, BANGRAK,
BANGKOK 10500
TELEPHONE : [66] 2234-7655
FAX : [66] 2236-9163
E-MAIL
ADDRESS : arlojewel@ksc.th.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1988
REGISTRATION NO. : 0105531013310
CAPITAL REGISTERED : BHT. 36,000,000
CAPITAL PAID-UP : BHT. 36,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MRS. HIROKO YOSHIDA, JAPANESE
MANAGING DIRECTOR
NO.
OF STAFF : 100
LINES
OF BUSINESS : JEWELRY PRODUCTS
MANUFACTURER 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 24,
1988 as a
private limited company under the name style
ARLO CO., LTD., by Japanese
groups, in order
to manufacture various
kinds of jewelry
products to international markets. It currently
employs approximately 100
staff.
The
subject’s registered address
is 79-79/1-2 Dejo
Rd., Suriyawongse, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Takashi Oishi |
|
Japanese |
72 |
|
Mr. Keiji Ishizaka |
|
Japanese |
42 |
|
Mrs. Hiroko Yoshida |
|
Japanese |
62 |
AUTHORIZED PERSON
One of the above directors
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mrs. Hiroko Yoshida
is the Managing Director.
She is Japanese nationality with
the age of
62 years old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing and distributing various
kinds of jewelry
products. The products
are gold and
platinum jewelry with diamond,
ruby, sapphire,
topaz, garnet, opal,
pearl, crystal, emerald and etc. The products include
ring, earring, pendant
bangle, bead pin,
locket, necklace, chain,
barrette, cufflink and
etc.
PURCHASE
Raw material and
components are purchased
from suppliers both
domestic and overseas,
mainly in India,
Hong Kong, Russia,
Africa and Belgium.
EXPORT
100% of the
products is exported
to U.S.A. and
Japan.
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
nor 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
for the past
two years.
CREDIT
Local bills are
paid by cash
or on the credits term
of 30-60 days.
Imports are by
L/C at sight or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately 100 staff.
LOCATION DETAILS
The
premise is owned
for administrative office
and factory at the
heading address. Premise
is located in a
prime commercial area.
COMMENT
Slow
consumption in USA
market would affect
the company’s business
in medium term
prospect, however exports
jewelry to USA market
has continued declined
since the US government has cut privilege
tax for Thai
jewelry products in
2007. This has
resulted to drop
in sales of
Thai products in
its main market.
The
subject would have
found new market
where consumption remains
strong like Middle
East and others
for long- term growth.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 5,000,000
divided into 50,000
shares of Bht.
100 each.
The capital was
increased later as
following:
Bht. 10,000,000 on April 5,
1988
Bht. 12,000,000 on June 6,
1988
Bht. 36,000,000 on July 24,
1998
The
latest registered capital
was increased to
Bht. 36,000,000 divided into
360,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
: [as at June 1,
2007]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Junet Co.,
Ltd. Nationality: Japanese Address : 6-13-2
Tanabekori Misuyoku, Nagoya,
Japan |
240,000 |
66.67 |
|
Arlo Co.,
Ltd. Nationality: Japanese Address : 2-19-18
Shikusa Shikusaku, Nagoya,
Japan |
40,000 |
11.11 |
|
Mr. Takashi Oishi Nationality: Japanese Address : 6-12-1
Higashiyama Motomashi Shikusaku, Nagoya, Japan |
24,300 |
6.75 |
|
Mr. Keiji Ishizaka Nationality: Japanese Address : 6-13-2
Tanabekori Misuyoku, Nagoya,
Japan |
15,700 |
4.35 |
|
Mr. Tomoko Oishi Nationality: Japanese Address : 6-12-1
Higashiyama Motomashi Shikusaku, Nagoya, Japan |
10,000 |
2.78 |
|
Mrs. Mitori Fujiwara Nationality: Japanese Address : 2-19-18
Shikusa Shikusaku, Nagoya,
Japan |
10,000 |
2.78 |
|
Mr. Ikuo Fujiwara Nationality: Japanese Address : 2-19-18
Shikusa Shikusaku, Nagoya,
Japan |
10,000 |
2.78 |
|
Mrs. Isumi Ishizaka Nationality: Japanese Address : 6-13-2
Tanabekori Misuyoku, Nagoya,
Japan |
10,000 |
2.78 |
Total Shareholders
8
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO. :
Mr. Prawat Thirakothai No. 3550
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2006 &
2005 were:
ASSETS
|
Current Assets |
2006 |
2005 |
|
|
|
|
|
Cash in hand
& at Bank
|
22,070,784 |
8,338,698 |
|
Trade Accts. Receivable |
14,740,546 |
30,167,107 |
|
Inventories [note 1] |
120,471,279 |
109,188,957 |
|
Refundable Value Added Tax |
554,579 |
1,017,217 |
|
Other Current Assets
|
416,945 |
382,975 |
|
Total Current
Assets |
158,254,133 |
149,094,954 |
|
Receivable & Loan to Employees |
218,248 |
519,545 |
|
Fixed Assets [note 2] |
27,331,713 |
28,984,843 |
|
Other Assets |
98,700 |
97,200 |
|
Total Assets |
185,902,794 |
178,696,542 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2006 |
2005 |
|
|
|
|
|
Short Term Loan
from Financial Institute |
5,000,000 |
13,000,000 |
|
Trade Accts. Payable |
6,791,307 |
1,823,787 |
|
Current Portion of Long
Term Loans |
8,562,036 |
8,426,040 |
|
Short Term Loan
from Related Person |
28,628,836 |
18,628,836 |
|
Other Current Liabilities |
2,469,035 |
3,609,712 |
|
Total Current
Liabilities |
51,451,214 |
45,488,375 |
|
Long Term Loan
from Related Company |
23,239,812 |
18,958,590 |
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Total Liabilities |
74,691,026 |
64,446,965 |
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|
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|
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Shareholders'
Equity |
|
|
|
|
|
|
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Share capital : Baht 100 par value
authorized, issued
and fully paid share
capital 360,000 shares |
36,000,000 |
36,000,000 |
|
Capital Paid |
36,000,000 |
36,000,000 |
|
Statutory Reserve |
3,600,000 |
3,600,000 |
|
Retained Earning -
Unappropriated |
71,611,768 |
74,649,577 |
|
Total
Shareholders' Equity |
111,211,768 |
114,249,577 |
|
Total
Liabilities & Shareholders' Equity |
185,902,794 |
178,696,542 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2006 |
2005 |
|
|
|
|
|
Sales |
191,530,767 |
198,561,583 |
|
Other Income |
2,811,714 |
3,572,575 |
|
Total Revenues
|
194,342,481 |
202,134,158 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
155,488,171 |
161,932,859 |
|
Selling & Administrative Expenses |
33,480,257 |
35,670,386 |
|
Total Expenses |
188,968,428 |
197,603,245 |
|
Profit / [Loss] Before Interest
Expenses & Income Tax |
5,374,053 |
4,530,913 |
|
Interest Expenses |
[1,584,244] |
[993,318] |
|
Income Tax |
[1,427,618] |
[1,156,799] |
|
Net Profit / [Loss] |
2,362,191 |
2,380,796 |
FINANCIAL NOTE
NOTE 1
Inventories
|
|
2006 |
2005 |
|
|
|
|
|
Raw Material |
108,601,493 |
99,781,404 |
|
Finished Goods |
2,059,606 |
1,994,214 |
|
Work in Process |
9,981,864 |
7,649,022 |
|
Total |
120,642,963 |
109,424,640 |
|
Less: Allowance
for Obsolescent Stock |
[171,684] |
[235,683] |
|
Total
|
120,471,279 |
109,188,957 |
NOTE 2
Fixed Assets
|
|
2006 |
2005 |
|
|
|
|
|
Land |
9,960,498 |
9,960,498 |
|
Building |
16,465,192 |
8,925,395 |
|
Building Improvement |
9,007,802 |
4,329,656 |
|
Machine & Hand Tools |
12,027,969 |
3,504,306 |
|
Decorator & Equipment |
6,651,896 |
2,264,988 |
|
Total |
54,113,357 |
28,984,843 |
|
Less: Depreciation |
[26,781,644] |
- |
|
Total
|
27,331,713 |
28,984,843 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2006 |
2005 |
|
Net Sales |
[3.54] |
|
|
Operating Profit |
22.96 |
|
|
Net Profit |
[0.78] |
|
|
Fixed Assets |
[5.70] |
|
|
Total Assets |
4.03 |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
81.18 |
81.55 |
|
Operating Profit Margin |
2.81 |
2.28 |
|
S & A
Expenses |
17.48 |
17.96 |
|
Interest Paid |
0.83 |
0.50 |
|
Other Revenues |
1.47 |
1.80 |
|
Net Profit Margin |
1.23 |
1.20 |
|
Earning Per Shares |
6.56 |
6.61 |
|
No. of Shares |
360,000 |
360,000 |
Net Sales was
decreased by 3.54%,
Operating Profit was
increased by 22.96%,
Net Profit was
decreased by 0.78%,
Fixed Assets was
decreased by 5.70%,
Total Assets was increased by
4.03%.
Compare each cost
with sales, Cost of
Good Sold was
decreased from 81.55%
to 81.18%, Operating
Profit Margin was
increased from 2.28%
to 2.81%, S
& A Expenses
was decreased from
17.96% to 17.48%,
Interest Paid was increased
from 0.50% to
0.83%, Other Revenues
was decreased from
1.80% to 1.47%,
Net Profit Margin
was increased from
1.20% to 1.23%.
Earning Per Shares
was decreased from
6.61 baht per
share to 6.56
baht per share.
Liquidity
|
Liquidity |
2006 |
2005 |
|
Current Ratio |
3.08 |
3.28 |
|
Quick-Assets Ratio |
0.72 |
0.85 |
Current Ratio was
decreased from 3.28
to 3.08, show
Current Assets can
cover Current Liabilities, Liquidity Ratio of
the company was
good, Quick-Assets Ratio
was decreased from
0.85 to 0.72,
capacity to pay
Short Term Loan
was not good,
because Current Assets
without Inventory can
not cover Current
Liabilities.
Leverage
|
Leverage |
2006 |
2005 |
|
D/E Ratio |
0.67 |
0.56 |
|
Times Interest Earned |
3.39 |
4.56 |
D/E Ratio was
increased from 0.56
to 0.67, show
the company had
fund from Equity
more than fund
from Loan, investment
risked of the
company is low,
Times Interest Earned
was decreased from
4.56 to 3.39,
capacity to pay
interest paid was
good.
Efficiency
|
Efficiency |
2006 |
2005 |
|
Fixed Assets Turnover |
7.01 |
6.85 |
|
Total Assets Turnover |
1.03 |
1.11 |
|
Return on Assets |
1.27 |
1.33 |
|
Return on Equity |
2.12 |
2.08 |
|
Day's Payable |
12.76 |
3.31 |
|
Day’s Inventories |
226.44 |
197.96 |
|
Day’s Receivables |
27.71 |
54.69 |
Fixed Assets Turnover
was increased from
6.85 times to
7.01 times, Total
Assets Turnover was
decreased from 1.11
times to 1.03
times, show the
company could use
Fixed Assets so efficiently, Return on
Assets was decreased
from 1.33 to
1.27, Return on
Equity was increased
from 2.08 to
2.12, capacity to
use Assets to
make profit was
good.
Day's Payable was
increased from 4
days to 13
days, and Day’s
Inventories was increased
from 198 days
to 227 days, while Day’s
Receivables was decreased
from 55 days
to 28 days.
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 |
Unfavourable & favourable factors carry similar weight in credit consideration.
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)