MIRA INFORM REPORT
|
Report Date : |
01.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
ESCO
ENTERPRISE CO., LTD. |
|
|
|
|
Registered Office : |
36
Charoenkrung 38 Road,
Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
26.07.1977 |
|
|
|
|
Com. Reg. No.: |
0105520010128 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer & exporter of fine
jewellery products |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
Thailand |
b1 |
b1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
ESCO ENTERPRISE
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 36
CHAROENKRUNG 38 ROAD,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 2236-6858,
2233-2490-1, 2237-8857
FAX :
[66] 2237-8755,
2233-2492
E-MAIL
ADDRESS : sales@escoco.com
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 : MR. PERAMIN CHOTERAVEE,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 200
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 approximate
200 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 |
|
|
|
|
|
|
Mr. Somrith Thienpoj |
|
Thai |
41 |
|
Mr. Peramin Choteravee |
|
Thai |
41 |
|
Ms. Nopkham Omathikul |
|
Thai |
38 |
|
Mr. Prasith Kongnoon |
|
Thai |
46 |
AUTHORIZED PERSON
Two of the
above directors can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Peramin Choteravee is
the Managing Director.
He is Thai
nationality with the
age of 41
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
sets have been designed and
produced with diamonds
and other precious
and semi-precious stones.
PURCHASE
70% of its
raw materials and
components are purchased from
local suppliers, the
remaining 30% is imported from
India, South Africa,
Russia, Belgium, Pakistan
and Japan.
MAJOR SUPPLIER
Beauty Gems Factory
Co., Ltd. : Thailand
EXPORT
100% of the products is
exported to Switzerland, Singapore,
Germany, Hong Kong,
Japan, United States
of America, United
Kingdom, France, Australia, India,
Republic of China 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.
SUBSIDIARY AND AFFILIATED
COMPANY
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
CREDIT
Local bills are paid on
the credits term
of 30-60-90 days.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BANKING
Kasikornbank Public Co.,
Ltd.
[Sathorn Branch
: North Sathorn
Rd., Silom, Bangrak,
Bangkok 10500]
Hong Kong &
Shanghai Banking Corp.
[Bangkok Branch
: 968 Rama
4 Rd., Silom,
Bangrak, Bangkok 10500]
EMPLOYMENT
The subject employs
approximately 200 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. : [66] 2718-5361-5, Fax. :
[66] 2318-0774.
REMARK
MAXIMUM CREDIT SHOULD
BE GRANTED AT US$
500,000.
COMMENT
The company produces
jewelry products which
100% serving to export
markets, in respond to the demand of consumer market. Since the
products are luxury goods,
subject’s performance
closely links with the conditions
of world consumption,
which was expanded
at a slow pace in the
previous year. Reduction
resulting from slow
consumption causing by
a major factors
like economic slowdown,
high inflation rate, investment
market risk and
etc., has weakening
the consumers’ spending
sentiment.
Despite economy has
gradually improved, products
consumption remains still
at the same
level as the previous
year.
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, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Somrith Thienpoj Nationality: Thai Address : 386/21 Surawong
Rd., Siphya, Bangrak, Bangkok 10500 |
12,500 |
25.00 |
|
Mr. Peramin Choteravee Nationality: Thai Address : 32 Convent
Rd., Silom, Bangrak,
Bangkok 10500 |
12,500 |
25.00 |
|
Ms. Nopkham Omathikul Nationality: Thai Address : 252/6-7 Silom
Rd., Suriyawongse,
Bangrak, Bangkok 10500 |
10,000 |
20.00 |
|
Mr. Prasith Kongnoon Nationality: Thai Address : 37 Moo
4, Thongnien, Khanom,
Nakornsrithammarat |
10,000 |
20.00 |
|
Mr. Thanaphan Jiratanavorakarn Nationality: Thai Address : 9/269 Moo
5, Praeksa, Muang, Samutrprakarn |
5,000 |
10.00 |
Total Shareholders : 5
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Poonpis
Chaovalitnithikul No. 5154
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalents |
4,072,629.69 |
5,207,439.73 |
|
Trade Accts. Receivable |
79,129,879.37 |
36,817,346.59 |
|
Inventories |
52,813,837.00 |
39,738,339.85 |
|
Other Current Assets
|
344,453.67 |
267,194.39 |
|
Total Current Assets
|
136,360,799.73 |
82,030,320.56 |
|
Other Long-term Investment |
17,500,000.00 |
17,500,000.00 |
|
Long-term Loan to Related Company |
10,000,000.00 |
3,200,000.00 |
|
Fixed Assets |
34,965,219.28 |
34,046,546.27 |
|
Other Assets |
3,108,578.18 |
2,601,974.53 |
|
Total Assets |
201,934,597.19 |
139,378,841.36 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Trade Accts. Payable |
165,376,326.61 |
78,820,728.25 |
|
Other Current Liabilities |
9,583,469.41 |
7,437,942.16 |
|
Total Current Liabilities |
174,959,796.02 |
86,258,670.41 |
|
Long-term Loan from Person or Related Company |
- |
28,700,000.00 |
|
Total Liabilities |
174,959,796.02 |
114,958,670.41 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
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 |
[23,025,198.83] |
[25,579,829.05] |
|
Total Shareholders' Equity |
26,974,801.17 |
24,420,170.95 |
|
Total Liabilities &
Shareholders' Equity |
201,934,597.19 |
139,378,841.36 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales & Service Income |
267,414,182.48 |
267,181,274.43 |
|
Other Income |
8,077,323.72 |
6,424,959.38 |
|
Total Sales |
275,491,506.20 |
273,606,233.81 |
|
Expenses |
|
|
|
|
|
|
|
Change in Finished
Goods & Work in Process |
[692,244.02] |
1,700,962.00 |
|
Raw Material & Material Supplies |
140,457,899.46 |
172,613,874.61 |
|
Employees Expenses |
84,421,091.17 |
72,296,924.11 |
|
Depreciation & Amortization |
4,019,202.81 |
3,351,248.23 |
|
Other Expenses |
39,132,422.26 |
13,409,818.26 |
|
Total Expenses |
267,338,371.68 |
263,372,827.21 |
|
Profit / [Loss] Before Finance Cost & Income Tax |
8,153,134.52 |
10,233,406.60 |
|
Finance Cost |
[4,104,174.33] |
[7,645,119.18] |
|
Profit / [Loss] Before Income
Tax |
4,048,960.19 |
2,588,287.42 |
|
Income Tax |
[1,494,329.97] |
[948,992.16] |
|
Net Profit / [Loss] |
2,554,630.22 |
1,639,295.26 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.78 |
0.95 |
|
QUICK RATIO |
TIMES |
0.48 |
0.49 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.65 |
7.85 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.32 |
1.92 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
137.24 |
84.03 |
|
INVENTORY TURNOVER |
TIMES |
2.66 |
4.34 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
108.01 |
50.30 |
|
RECEIVABLES TURNOVER |
TIMES |
3.38 |
7.26 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
429.75 |
166.67 |
|
CASH CONVERSION CYCLE |
DAYS |
(184.50) |
(32.34) |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
52.52 |
64.61 |
|
SELLING & ADMINISTRATION |
% |
33.07 |
28.31 |
|
INTEREST |
% |
1.53 |
2.86 |
|
GROSS PROFIT MARGIN |
% |
50.50 |
37.80 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.05 |
3.83 |
|
NET PROFIT MARGIN |
% |
0.96 |
0.61 |
|
RETURN ON EQUITY |
% |
9.47 |
6.71 |
|
RETURN ON ASSET |
% |
1.27 |
1.18 |
|
EARNING PER SHARE |
BAHT |
51.09 |
32.79 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.87 |
0.82 |
|
DEBT TO EQUITY RATIO |
TIMES |
6.49 |
4.71 |
|
TIME INTEREST EARNED |
TIMES |
1.99 |
1.34 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
0.09 |
|
|
OPERATING PROFIT |
% |
(20.33) |
|
|
NET PROFIT |
% |
55.84 |
|
|
FIXED ASSETS |
% |
2.70 |
|
|
TOTAL ASSETS |
% |
44.88 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
50.50 |
Impressive |
Industrial
Average |
29.12 |
|
Net Profit Margin |
0.96 |
Impressive |
Industrial
Average |
0.34 |
|
Return on Assets |
1.27 |
Impressive |
Industrial
Average |
0.60 |
|
Return on Equity |
9.47 |
Impressive |
Industrial
Average |
1.49 |
Gross Profit Margin used to assess a firm's financial health by revealing
the proportion of money left over from sales 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 50.5%. When compared with
the industry average, the ratio of the company was higher, this indicated that
company was more profitable than the same industry.
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
0.96%, higher figure
when compared with those of its average competitors in the same
industry, indicated that business was an efficient operator in a dominant
position within its industry.
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. Return on Assets ratio is
1.27%, 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.
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 9.47%, 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 RATIO
|
Current Ratio |
0.78 |
Risky |
Industrial
Average |
1.99 |
|
Quick Ratio |
0.48 |
|
|
|
|
Cash Conversion Cycle |
(184.50) |
|
|
|
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 0.78 times in 2010, decrease from 0.95 times, then the company may
not be efficiently using its current assets. 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 0.48 times in 2010,
decrease from 0.49 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 -185 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.87 |
Impressive |
Industrial
Average |
0.92 |
|
Debt to Equity Ratio |
6.49 |
Risky |
Industrial
Average |
2.29 |
|
Times Interest Earned |
1.99 |
Impressive |
Industrial
Average |
1.83 |
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 lower the percentage means that the company is using less
leverage and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 1.99 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 0.87 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 Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
7.65 |
Impressive |
Industrial
Average |
5.25 |
|
Total Assets Turnover |
1.32 |
Acceptable |
Industrial
Average |
2.43 |
|
Inventory Conversion Period |
137.24 |
|
|
|
|
Inventory Turnover |
2.66 |
Deteriorated |
Industrial
Average |
17.66 |
|
Receivables Conversion Period |
108.01 |
|
|
|
|
Receivables Turnover |
3.38 |
Acceptable |
Industrial
Average |
5.67 |
|
Payables Conversion Period |
429.75 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.93 |
|
UK Pound |
1 |
Rs.76.52 |
|
Euro |
1 |
Rs.66.65 |
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 |
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 |
|
---- |
NB |
New Business |
---- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.