MIRA
INFORM REPORT
|
Report Date : |
09.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
ESCO ENTERPRISE
CO., LTD. |
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Formerly Known As : |
E. SINCHONG ENTERPRISE CO., LTD |
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Registered Office : |
36 Charoenkrung 38
Road, Bangrak, Bangrak, Bangkok
10500 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
26.07.1977 |
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Com. Reg. No.: |
0105520010128 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer and Exporter of Fine Jewellery Products |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name of the company
ESCO ENTERPRISE
CO., LTD.
SUMMARY
BUSINESS ADDRESS : 36
CHAROENKRUNG 38 ROAD,
BANGRAK,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66]
2236-6858
FAX : [66] 2236-6784
REGISTRATION ADDRESS : SAME AS
BUSINESS ADDRESS
ESTABLISHED : 1977
REGISTRATION NO.
: 0105520010128 [Former : 1012/2520]
CAPITAL REGISTERED
: BHT.
50,000,000
CAPITAL PAID-UP
: BHT.
50,000,000
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MRS.
SAITHARN SATHIENWANTANEE, THAI
MANAGING DIRECTOR
NO. OF
STAFF : 80
LINES OF
BUSINESS : FINE
JEWELLERY PRODUCTS
MANUFACTURER &
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 July
26, 1977 as
a private limited
company under the registered
name E. SINCHONG ENTERPRISE
CO., LTD by Thai groups,
to manufacture and export
fine jewelry products
to international markets.
On August 23, 1993 its name was changed to ESCO ENTERPRISE CO., LTD.
It currently employs
approximately 80 staff.
The subject’s registered address was initially located
at 10/18 North
Sathorn Rd., Silom,
Bangrak, Bangkok 10500.
On October 18,
2005, it was
relocated to 36
Charoenkrung 38 Rd.,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
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|
|
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Mr. Kowit Hongsitthiwong |
|
Thai |
60 |
|
Mr. Somrith Thienpoj |
|
Thai |
38 |
|
Mr. Peramin Choteravee |
|
Thai |
38 |
|
Mrs. Saitharn Sathienwantanee |
|
Thai |
58 |
|
Ms. Nopkham Omathikul |
|
Thai |
35 |
AUTHORIZED PERSON
Two of the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mrs. Saitharn Sathienwantanee is
the Managing Director.
She is Thai nationality with
the age of
58 years old.
BUSINESS OPERATIONS
The subject’s activities
are manufacturer and
exporter of fine
jewelry products in 14 K and
18 K gold, platinum
900, 950 and
sterling silver. The jewelry products set have been designed
and produced with diamonds
and other precious
and semi-precious stones.
PURCHASE
Raw materials and
components are purchased
from suppliers in
both domestic and
overseas, mainly India,
Pakistan and Japan.
EXPORT
100% of the
products is exported
to India, Europe,
Japan, United States of
America and Middle
East countries.
.
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.
RELATED COMPANY
Beauty Gems Factory
Co., Ltd.
Business Type: Manufacturer of
fine jewelry products.
CREDIT
Local bills are
paid on the
credits term of
30-60-90 days.
Exports are against
L/C at sight or T/T.
BUSINESS TRANSACTION
The products are
sold by cash
and credit, with the maximum credit given at
30-60 days. The subject is not found to have problem
on its account receivable.
BANKING
Kasikornbank Public Co.,
Ltd.
[Sathorn Branch :
North Sathorn Rd.,
Silom, Bangrak, Bangkok
10500]
EMPLOYMENT
The subject employs
approximately 80 staff. [office and sales staff]
LOCATION DETAILS
The premise is owned for administrative
office at the
heading address. Premise
is located in
commercial/residential area.
Factory is located
at 99 Soi Poonsapsin, Ramkhamhaeng Rd., Bangkapi, Bangkok
10240. Tel. 2718-5361-5, Fax. 2318-0774.
REMARK
CREDIT OF US$
500,000 D/A TERM
SHOULD BE IN
ORDER.
COMMENT
The subject has successfully
become an original design manufacturer
and exporter of jewelry according to its own design and
producing. The products
are for export
markets. The subject has
capabilities to design and create its products to various style in
order to meet with its customer’s requirement.
Subject reported its sales
revenue in 2007
slower than the
previous year. This
was due to
decline consumption in
world market causing
by economic slowdown.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 1,500,000 divided
into 1,000 shares
of Bht. 1,500
each.
The capital was
increased later as
follows:
Bht. 3,000,000
on April 21,
1986
Bht. 50,000,000
on December 3,
1997
The latest registered
capital was increased
to Bht. 50,000,000 divided
into 50,000 shares
of Bht. 1,000
each with fully
paid.
THE SHAREHOLDERS LISTED WERE
[as at
April 30, 2008]
|
NAME |
HOLDING |
% |
|
|
|
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Mrs. Saitharn Sathienwantanee Nationality: Thai Address : 572 Sathorn
Rd., Yannawa, Sathorn,
Bangkok 10120 |
10,000 |
20.00 |
|
Mr. Kowit Hongsitthiwong Nationality: Thai Address : 66/16 Ratchadapisek Rd., Wat Thaphra,
Bangkokyai, Bangkok |
10,000 |
20.00 |
|
Mr. Somrith Thienpoj Nationality: Thai Address : 386/21 Surawong
Rd., Siphya, Bangrak,
Bangkok 10500 |
10,000 |
20.00 |
|
Mr. Peramin Choteravee Nationality: Thai Address : 32 Convent
Rd., Silom, Bangrak,
Bangkok
10500 |
7,500 |
15.00 |
|
|
|
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Ms. Nopkham Omathikul Nationality: Thai Address : 252/6-7 Silom
Rd., Suriyawongse,
Bangrak, Bangkok 10500 |
7,500 |
15.00 |
|
Mrs. Somsri Namsubin Nationality: Thai Address : 100/89 Moo
20, Minburi, Bangkok |
2,500 |
5.00 |
|
Mr. Suchart Chuenchom Nationality: Thai Address : 69 Ladprao
49 Rd., Wangthonglang, Bangkok |
2,500 |
5.00 |
Total Shareholders : 7
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mr. Thanapat Chavalitnithikul No. 660
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2007 &
2006 were:
ASSETS
|
Current Assets |
2007 |
2006 |
|
|
|
|
|
Cash in hand
& at Bank
|
6,130,974.63 |
3,930,899.24 |
|
Trade Accts. Receivable |
102,914,281.09 |
128,229,911.94 |
|
Inventories |
110,042,769.92 |
93,481,048.41 |
|
Other Current Assets
|
6,072,283.84 |
1,246,122.84 |
|
Total Current Assets
|
225,160,309.48 |
226,887,982.43 |
|
Other Long-term Investment |
17,500,000.00 |
17,500,000.00 |
|
Long-term Loan to Person
or Related Company |
14,450,000.00 |
32,700,000.00 |
|
Fixed Assets |
32,612,635.54 |
34,700,000.00 |
|
Other Assets |
3,189,268.08 |
3,260,590.48 |
|
Total Assets |
292,912,213.10 |
314,689,283.08 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2007 |
2006 |
|
|
|
|
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Trade Accts. Payable |
261,290,327.14 |
286,221,934.78 |
|
Other Current Liabilities |
9,057,421.88 |
9,880,686.05 |
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Total Current Liabilities |
270,347,749.02 |
296,102,620.83 |
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Total Liabilities |
270,347,749.02 |
296,102,620.83 |
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Shareholders' Equity |
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Share capital : Baht 1,000 value authorized, issued
and fully paid share
capital 50,000 shares |
50,000,000.00 |
50,000,000.00 |
|
Capital Paid |
50,000,000.00 |
50,000,000.00 |
|
Retained Earning -
Unappropriated |
[27,435,535.92] |
[31,413,337.75] |
|
Total Shareholders' Equity |
22,564,464.08 |
18,586,662.25 |
|
Total Liabilities &
Shareholders' Equity |
292,912,213.10 |
314,689,283.08 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2007 |
2006 |
|
|
|
|
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Sales & Service
Income |
344,406,923.98 |
524,849,036.75 |
|
Other Income |
7,278,693.93 |
10,774,023.36 |
|
Total Revenues |
351,685,617.91 |
535,623,060.11 |
|
Expenses |
|
|
|
|
|
|
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Cost of Goods
Sold |
293,340,815.36 |
462,496,701.21 |
|
Selling & Administrative Expenses |
38,836,798.94 |
48,755,484.74 |
|
Total Expenses |
332,177,614.30 |
511,252,185.95 |
|
Profit / [Loss] Before Interest
Expenses & Income Tax |
19,508,003.61 |
24,370,874.16 |
|
Interest Expenses |
[13,345,909.72] |
[14,030,968.70] |
|
Income Tax |
[2,184,292.06] |
[3,958,918.37] |
|
Net Profit / [Loss] |
3,977,801.83 |
6,380,987.09 |
FINANCIAL ANALYSIS
Annual Growth &
Profitability
|
Annual Growth |
2007 |
2006 |
|
Net Sales |
[34.38] |
|
|
Operating Profit |
21.98 |
|
|
Net Profit |
[37.66] |
|
|
Fixed Assets |
[6.02] |
|
|
Total Assets |
[6.92] |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
85.17 |
88.12 |
|
Operating Profit Margin |
5.66 |
4.64 |
|
S & A
Expenses |
11.28 |
9.29 |
|
Interest Paid |
3.88 |
2.67 |
|
Other Revenues |
2.11 |
2.05 |
|
Net Profit Margin |
1.15 |
1.22 |
|
Earning Per Shares |
79.56 |
127.62 |
|
No. of Shares |
50,000 |
50,000 |
Net Sales was
decreased by 34.38%,
Operating Profit was
increased by 21.98%,
Net Profit was
decreased by 37.66%,
Fixed Assets was decreased by 6.02%,
Total Assets was
decreased by 6.92%.
Compare each cost
with sales, Cost of
Good Sold was
decreased from 88.12%
to 85.17%, Operating
Profit Margin was
increased from 4.64%
to 5.66%, S
& A Expenses
was increased from
9.29% to 11.28%,
Interest Paid was increased
from 2.67% to
3.88%, Other Revenues
was increased from
2.05% to 2.11%,
Net Profit Margin
was decreased from
1.22% to 1.15%.
Earning Per Shares
was decreased from
127.62 baht per
share to 79.56
baht per share.
Liquidity
|
Liquidity |
2007 |
2006 |
|
Current Ratio |
0.83 |
0.77 |
|
Quick-Assets Ratio |
0.40 |
0.45 |
Current Ratio was
increased from 0.77
to 0.83, show
Current Assets can
not cover Current
Liabilities, Liquidity Ratio
of the company was not
good, Quick-Assets Ratio
was decreased from
0.45 to 0.40,
capacity to pay
Short Term Loan
was not good
too, because Current
Assets without Inventory
can not cover
Current Liabilities.
Leverage
|
Leverage |
2007 |
2006 |
|
D/E Ratio |
11.98 |
15.93 |
|
Times Interest Earned |
1.46 |
1.74 |
D/E Ratio was
decreased from 15.93
to 11.98, show
the company had
fund from Loan
more than fund
from Equity, investment
risked of the
company is high, Times
Interest Earned was
decreased from 1.74
to 1.46, capacity
to pay interest paid was
good.
Efficiency
|
Efficiency |
2007 |
2006 |
|
Fixed Assets Turnover |
10.56 |
15.13 |
|
Total Assets Turnover |
1.18 |
1.67 |
|
Return on Assets |
1.36 |
2.03 |
|
Return on Equity |
17.63 |
34.33 |
|
Day's Payable |
273.12 |
196.32 |
|
Day’s Inventories |
115.02 |
64.12 |
|
Day’s Receivables |
107.57 |
87.95 |
Fixed Assets Turnover
was decreased from
15.13 times to
10.56 times, Total
Assets Turnover was
decreased from 1.67
times to 1.18
times, show the
company could not
use Assets so
efficiently, Return on
Assets was decreased
from 2.03 to
1.36, Return on
Equity was decreased
from 34.33 to
17.63, capacity to
use Assets to
make profit was
good.
Day's Payable was
increased from 197
days to 274
days, Day’s Inventories
was increased from
65 days to
116 days, and
Day’s Receivables was
increased from 88
days to 108
days.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.89 |
|
UK Pound |
1 |
Rs.78.86 |
|
Euro |
1 |
Rs.63.33 |
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 |
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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%)