MIRA INFORM REPORT
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Report Date : |
21.10.2011 |
IDENTIFICATION DETAILS
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Name : |
THAI
SHEARING LOHA LIMITED
PARTNERSHIP |
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Registered Office : |
1318
Rama 6 Road,
Wangmai, Pathumwan, Bangkok 10330 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
21.02.1995 |
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Com. Reg. No.: |
0103538005477 |
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Legal Form : |
Limited Partnership |
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Line of Business : |
Distributor of ferrous and non-ferrous metals |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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 |
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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Thailand |
b1 |
b1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name
THAI SHEARING LOHA
LIMITED PARTNERSHIP
SUMMARY
BUSINESS
ADDRESS : 1318
RAMA 6 ROAD,
WANGMAI, PATHUMWAN,
BANGKOK 10330,
THAILAND
TELEPHONE : [66] 2236-0060,
2216-4681-2
FAX :
[66] 2216-4680
E-MAIL
ADDRESS : thaishear@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1995
REGISTRATION
NO. : 0103538005477
CAPITAL REGISTERED : BHT. 4,000,000
CAPITAL PAID-UP : BHT.
4,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : LIMITED PARTNERSHIP
EXECUTIVE : MR. CHAINARONG JARASSANYAKUL, THAI
MANAGING PARTNER
NO.
OF STAFF : 15
LINES
OF BUSINESS : FERROUS AND
NON-FERROUS METALS
DISTRIBUTOR
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 21, 1995 as
a limited partnership under the
name style THAI SHEARING LOHA LIMITED PARTNERSHIP by Thai partners, with
the business objective to
distribute ferrous and
non-ferrous metals to
domestic market. It
currently employs 15
staff.
The
subject’s registered address
is 1318 Rama 6
Rd., Wangmai, Pathumwan,
Bangkok 10330, and
this is the
subject’s current operation
address.
AUTHORIZED PERSON
Mr. Chainarong Jarassanyakul can
sign on behalf
of the subject
with seal affixed.
He also bears
full financial responsibility by
law.
MANAGEMENT
Mr. Chainarong Jarassanyakul is
the Managing Partner.
He is Thai
nationality with the
age of 41
years old.
BUSINESS OPERATIONS
The subject is engaged in distributing various kinds of
ferrous and non-ferrous metal
products, such as
stainless steel, copper, zinc,
aluminium, brass and
etc., as well
as providing of
stainless steel shearing
and cutting service
with laser and
plasma process.
PURCHASE
100%
of the products
is purchased from
local suppliers.
SALES
100%
of the products
is sold and
serviced locally by
wholesale and retail
to manufacturers and
end-users.
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
COMPANIES
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
CREDIT
Sales are by
cash or on
the credit term
of 30-60 days.
Local bills are
paid by cash
or on the credits term
of 30-60 days.
BANKING
The
banker’s name was
not disclosed.
EMPLOYMENT
The
subject employs 15
staff.
LOCATION
DETAILS
The
premise is owned
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Warehouse
is located at
38/1 Moo 7,
Chimplee, Talingchan, Bangkok
10170.
Tel.:
[66] 2884-3633-6, Fax:
[66] 2884-2352.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
1,000,000.
COMMENT
Subject was formed in
1995 as a
distributor of ferrous and non-ferrous metal products.
Its products are
stainless steel, copper, zinc,
aluminium, brass and
etc., as well
as stainless steel
shearing and cutting
service with laser
and plasma process.
The subject’s products
have been served
to construction and
industrial sector which
sales were growing
significantly at the
first half of
the year. However,
due to a
current flood in many parts
of Thailand which affects
on many construction
and industrial sectors,
the subject might encounter slow
sales relatively till
the rest of
the year. It
is anticipated that
after the flood
recovery, the subject’s
sales would grow
subsequently.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 4,000,000 which
was carried by
3 persons as
followed:
Name Age Amount
Mr. Chainarong Jarassanyakul 41 Bht. 2,000,000
[Unlimited Partner]
Ms. Wanna Jarassanyakul 43 Bht. 1,500,000
Mr. Boonchai Jarassanyakul 29 Bht. 500,000
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Krittima Srisomsak No.
8172
BALANCE SHEET [BAHT]
The latest financial figures published for December 31, 2010 & 2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash in Hand
& at Bank |
423,645.27 |
269,399.34 |
|
Trade Accounts Receivable |
24,961,382.22 |
21,165,824.92 |
|
Inventories |
19,655,497.28 |
14,254,504.10 |
|
Other Current Assets
|
249,545.21 |
224,055.94 |
|
|
|
|
|
Total Current Assets
|
45,290,069.98 |
35,913,784.30 |
|
Fixed Assets |
18,851,420.60 |
19,421,706.38 |
|
Leasehold Right |
1,000,000.00 |
- |
|
Other Assets |
24,600.00 |
24,600.00 |
|
Total Assets |
65,166,090.58 |
55,360,090.68 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Bank |
21,910,655.25 |
16,799,447.89 |
|
Trade Accounts &
Notes Payable |
25,867,865.32 |
22,272,654.60 |
|
Current Portion of Long-term
Loan |
1,301,473.44 |
2,048,994.88 |
|
Current Portion of
Hire-purchase Payable |
233,460.00 |
316,323.00 |
|
Other Current Liabilities |
588,957.61 |
666,618.84 |
|
|
|
|
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Total Current Liabilities |
49,902,411.62 |
42,104,039.21 |
|
Other Long-term Loan |
1,254,806.83 |
2,601,057.42 |
|
Hire-purchase Contract Payable |
369,645.00 |
603,105.00 |
|
Other Liabilities |
748,800.00 |
- |
|
Total Liabilities |
52,275,663.45 |
45,308,201.63 |
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|
|
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Shareholders' Equity |
|
|
|
|
|
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Capital Paid |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning -
Unappropriated |
8,890,427.13 |
6,051,889.05 |
|
Total Shareholders' Equity |
12,890,427.13 |
10,051,889.05 |
|
Total Liabilities & Shareholders' Equity |
65,168,090.58 |
55,360,090.68 |
PROFIT &
LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
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Sales |
177,570,677.53 |
111,964,539.43 |
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Other Income |
1,161,905.68 |
56,736.30 |
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Total Sales |
178,732,583.21 |
112,021,275.73 |
|
Expenses |
|
|
|
|
|
|
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Cost of Goods
Sold |
163,419,359.74 |
100,680,996.06 |
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Selling Expenses |
877,689.96 |
452,035.73 |
|
Administrative Expenses |
6,489,724.45 |
4,906,457.95 |
|
Other Expenses |
14,622.71 |
- |
|
Total Expenses |
170,801,396.86 |
106,039,489.74 |
|
|
|
|
|
Profit / [Loss] before Financial
Cost & Income Tax |
7,931,186.35 |
5,981,785.99 |
|
Financial Cost |
[4,214,770.27] |
[3,243,782.69] |
|
Income Tax |
[877,878.00] |
[596,015.00] |
|
|
|
|
|
Net Profit / [Loss] |
2,838,538.08 |
2,141,988.30 |
|
Retained Earning, beginning of
year |
6,051,889.05 |
3,909,900.75 |
|
Retained Earning, end
of year |
8,890,427.13 |
6,051,889.05 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.91 |
0.85 |
|
QUICK RATIO |
TIMES |
0.51 |
0.51 |
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|
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ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
9.42 |
5.76 |
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TOTAL ASSETS TURNOVER |
TIMES |
2.72 |
2.02 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
43.90 |
51.68 |
|
INVENTORY TURNOVER |
TIMES |
8.31 |
7.06 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
51.31 |
69.00 |
|
RECEIVABLES TURNOVER |
TIMES |
7.11 |
5.29 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
57.78 |
80.75 |
|
CASH CONVERSION CYCLE |
DAYS |
37.43 |
39.93 |
|
|
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PROFITABILITY
RATIO |
|
|
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|
COST OF GOODS SOLD |
% |
92.03 |
89.92 |
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SELLING & ADMINISTRATION |
% |
4.15 |
4.79 |
|
INTEREST |
% |
2.37 |
2.90 |
|
GROSS PROFIT MARGIN |
% |
8.62 |
10.13 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.47 |
5.34 |
|
NET PROFIT MARGIN |
% |
1.60 |
1.91 |
|
RETURN ON EQUITY |
% |
22.02 |
21.31 |
|
RETURN ON ASSET |
% |
4.36 |
3.87 |
|
|
|
|
|
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LEVERAGE RATIO |
|
|
|
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DEBT RATIO |
TIMES |
0.80 |
0.82 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.06 |
4.51 |
|
TIME INTEREST EARNED |
TIMES |
1.88 |
1.84 |
|
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ANNUAL GROWTH |
|
|
|
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SALES GROWTH |
% |
58.60 |
|
|
OPERATING PROFIT |
% |
32.59 |
|
|
NET PROFIT |
% |
32.52 |
|
|
FIXED ASSETS |
% |
(2.94) |
|
|
TOTAL ASSETS |
% |
17.71 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
8.62 |
Impressive |
Industrial
Average |
5.42 |
|
Net Profit Margin |
1.60 |
Impressive |
Industrial
Average |
0.33 |
|
Return on Assets |
4.36 |
Impressive |
Industrial
Average |
1.04 |
|
Return on Equity |
22.02 |
Impressive |
Industrial
Average |
3.08 |
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. Gross Profit Margin is 8.62%. 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. Net Profit Margin is 1.6%,
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 is 4.36%, 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.
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 22.02%, 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 |
0.91 |
Risky |
Industrial
Average |
1.22 |
|
Quick Ratio |
0.51 |
|
|
|
|
Cash Conversion Cycle |
37.43 |
|
|
|
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 0.91 times in 2010, increase from 0.85 times, then the company may have
problems meeting its short-term obligations. 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 0.51 times in 2010,
decrease from 0.51 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 38 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.80 |
Acceptable |
Industrial Average |
0.69 |
|
Debt to Equity Ratio |
4.06 |
Risky |
Industrial Average |
2.16 |
|
Times Interest Earned |
1.88 |
Impressive |
Industrial Average |
1.00 |
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 1.89 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 0.8 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 Downtrend
Times Interest Earned Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
9.42 |
Satisfactory |
Industrial Average |
10.55 |
|
Total Assets Turnover |
2.72 |
Impressive |
Industrial Average |
2.69 |
|
Inventory Conversion Period |
43.90 |
|
|
|
|
Inventory Turnover |
8.31 |
Impressive |
Industrial Average |
6.58 |
|
Receivables Conversion Period |
51.31 |
|
|
|
|
Receivables Turnover |
7.11 |
Impressive |
Industrial Average |
6.00 |
|
Payables Conversion Period |
57.78 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.71 |
|
UK Pound |
1 |
Rs.78.09 |
|
Euro |
1 |
Rs.68.05 |
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.