MIRA INFORM REPORT
|
Report Date : |
11.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
KHON
KAEN ALCOHOL CO.,
LTD. |
|
|
|
|
Registered Office : |
17th Floor,
|
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Country : |
|
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|
|
|
Financials (as on) : |
31.10.2011 |
|
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Date of Incorporation : |
03.02.2004 |
|
|
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Com. Reg. No.: |
0105547015716 |
|
|
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|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, exporter and
Distributor of ethanol & bio-fertilizer |
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|
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|
No. of Employees
: |
300 |
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 |
|
|
|
|
Payment
Behaviour : |
No Complaints |
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|
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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
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
KHON KAEN ALCOHOL CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 17th FLOOR,
KSL TOWER, 503
SRI AYUDHYA ROAD,
THANON PHYATHAI,
RAJTHEVI, BANGKOK 10400
TELEPHONE : [66] 2642-6191-9
FAX : [66] 2642-6092
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2004
REGISTRATION
NO. : 0105547015716
CAPITAL REGISTERED : BHT. 610,000,000
CAPITAL PAID-UP : BHT.
610,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : OCTOBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. PORNSILP TAEMSIRICHAI, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 300
LINES
OF BUSINESS : ETHANOL & BIO-FERTILIZER
MANUFACTURER,
EXPOERTER AND DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on February 3,
2004 as a
private limited company under
the name style
KHON KAEN ALCOHOL
CO., LTD., by Thai groups,
in order to
produce ethanol &
bio-fertilizer to domestic and oversea
market. It currently employs approximate
300 staff. Subject is a
wholly owned subsidiary
of Khon Kaen
Sugar Industry Public
Company Limited, the
leading manufacturer of sugar and
sugar related products.
The
subject’s registered address
is 17th Flr., KSL Tower, 503
Sri Ayudhya Rd.,
Thanon Phyathai, Rajthevi,
Bangkok 10400, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Chamroon Chinthammit :
Chairman |
|
Thai |
62 |
|
Mr. Somchai Chinthammit |
|
Thai |
60 |
|
Mr. Chalach Chinthammit |
|
Thai |
41 |
|
Mr. Pornsilp Taemsirichai |
|
Thai |
65 |
|
Mr. Trakarn Chunharojrith |
|
Thai |
70 |
|
Mr. Theera Sanguandeekul |
|
Thai |
61 |
|
Mr. Chanachai Chutimavoraphan |
|
Thai |
38 |
AUTHORIZED PERSON
Any two of
the above directors can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Pornsilp Taemsirichai is
the Managing Director.
He is Thai
nationality with the
age of 65
years old.
Mr. Narong Chitnomrat is
the Assistant Managing
Director.
He is Thai
nationality.
Mr. Chompol Thantaviworn is
the Marketing Manager.
He is Thai
nationality.
Mr. Chalermchoke Srisuwan is
the Factory Manager [Karnchanaburi Province].
He is Thai
nationality.
Mr. Niruth Panyasith is
the Factory Manager [Khon
Kaen Province].
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in producing
and distributing ethanol [ethyl alcohol],
the major material for
alternative fuel [Gasohol]
production, as well
as bio-fertilizer under
its owned trademark
“LOKESODSAI”.
PRODUCTION CAPACITY
Ethanol : 150,000-200,000 liters
per day
Bio-fertilizer 60,000
tons per annum
PURCHASE
100% of its
raw materials, such
as molasses, sugarcane
juice and chemical
are purchased from
local suppliers.
MAJOR SUPPLIER
Khon Kaen Sugar
Industry Public Company
Limited : Thailand
SALES
Its products are
supplied to petroleum
and agriculture industries,
100% of Ethanol
and 90% of
bio-fertilizer are sold
locally, while the
remaining 10% of
bio-fertilizer is exported
to Cambodia.
MAJOR CUSTOMER
PTT Public Company
Limited.
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
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
L/C at sight.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately 300 staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is located in
commercial/residential area.
Ethanol
Factories :
-
88 Moo
10, Nampong-Kranuan Rd., T. Nampong,
A. Nampong, Khon Kaen
40140.
Tel
: [66] 43 432-915-6, Fax
: [66] 43 432-917
-
99/2
Moo 6, T. Lumlang,
A. Borploy, Kanchanaburi 71160.
Bio-Fertilizer Factory
:
-
41 Moo 9,
Nampong-Kranuan Rd., T. Pangtui,
A. Nampong, Khon Kaen
40140.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
2,000,000.
COMMENT
Subject
is a manufacturer
and distributor of
ethanol, a major
raw material for
alternative fuel. It is
an intoxicating agent
in fermented and
distilled liquors; used
pure or denatured
as a solvent
purposed as a renewable
clean burning additive
to gasoline. Sales of
ethanol-blended gasoline have
grown rapidly in
the market over
the past few years,
as well as
bio-fertilizer is an
essential products to agricultural
industry. The products
are in strong
demand as an
alternative for environment
protection.
Subject
has solid business
and expanding steadily.
FINANCIAL INFORMATION
The capital was
registered at Bht. 1,000,000 divided
into 100,000 shares
of Bht. 10 each.
The
capital was increased
later as following:
Bht. 160,000,000
on July 20,
1994
Bht. 610,000,000
on July 28,
2008
The
latest registered capital
was increased to
Bht. 610 million, divided into
61,000,000 shares of
Bht. 10 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
February 21, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Khon Kaen Sugar
Industry Public Company
Limited Nationality: Thai Address : 503
Sri Ayudhya Rd.,
Thanon Phyathai,
Rajthevi, Bangkok |
60,998,560 |
99.99 |
|
Mr. Chamroon Chinthammit Nationality: Thai Address : 44/6
Sukhumvit 31 Rd.,
Klongtonnua, Wattana, Bangkok |
160 |
|
|
Mr. Pornsilp Taemsirichai Nationality: Thai Address : 43
Moo 10, Nampong-Kranuan Rd.,
Nampong, Khon
Kaen |
160 |
|
|
Mr. Trakarn Chunharojrith Nationality: Thai Address : 220/14
Chan Rd., Thungwatdon, Sathorn, Bangkok |
160 |
|
|
Mr. Chalach Chinthammit Nationality: Thai Address : 42/2
Sukhumvit 31 Rd.,
Klongtonnua,
Wattana, Bangkok |
160 |
|
|
Mr. Chanachai Chutimavoraphan Nationality: Thai Address : 265
Sukhumvit 31 Rd.,
Klongtonnua, Wattana, Bangkok |
160 |
= 0.01 |
|
Mr. Virach Chunfung Nationality: Thai Address : 14/53
Moo 10, Sang-xuto
Rd., Thamaka,
Kanchanaburi |
160 |
|
|
Mr. Somchai Chinthammit Nationality: Thai Address : 42/3
Sukhumvit 31 Rd.,
Klongtonnua, Wattana, Bangkok |
160 |
|
|
Mr. Narong Chitnomrat Nationality: Thai Address : 83
Charansanitwong Rd., Bangplad,
Bangkok |
160 |
|
|
Mr. Theera Sanguandeekul Nationality: Thai Address : 87/1
Rajvithee Rd., Samsennai,
Phyathai, Bangkok |
160 |
|
|
|
|
|
Total Shareholders :
10
Share Structure [as
at February 21, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
10 |
61,000,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
10 |
61,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC ACCOUNTANT NO. :
Ms. Vimolporn Boonysathien No.
4067
BALANCE SHEET [BAHT]
The latest financial figures published for October 31, 2011 & 2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
11,912,455 |
6,939,892 |
|
Trade Accounts Receivable |
53,401,298 |
80,163,261 |
|
Inventories |
244,752,704 |
183,103,573 |
|
Other Current Assets
|
|
|
|
Machine Spare parts |
20,588,951 |
6,897,531 |
|
Prepaid Material |
78,905,104 |
12,538,841 |
|
Refundable Value Added Tax |
2,745,791 |
3,492,032 |
|
Others |
7,340,620 |
3,265,372 |
|
Total Current Assets
|
419,646,923 |
296,400,502 |
|
|
|
|
|
Fixed Assets |
1,333,693,753 |
1,265,587,383 |
|
Other Assets Advance Payment Factory Contract |
3,232,547 |
264,000 |
|
Other |
132,893 |
121,989 |
|
Total Assets |
1,756,706,116 |
1,562,373,874 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Short Term Loan
from Financial Institution |
232,000,000 |
- |
|
Trade Accounts Payable |
24,407,916 |
6,931,962 |
|
Short-term Loan from
Parent Company |
- |
103,000,000 |
|
Current Portion of Long-term Loans |
60,000,000 |
- |
|
Other Current Liabilities |
|
|
|
Other Payable |
6,299,491 |
5,073,582 |
|
Account Payable Assets |
22,559,832 |
18,279,252 |
|
Others |
13,434,882 |
20,632,103 |
|
Total Current Liabilities |
358,702,121 |
153,916,899 |
|
|
|
|
|
Long-term Loans, net |
250,000,000 |
310,000,000 |
|
Total Liabilities |
608,702,121 |
463,916,899 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 10
value Authorized &
issued share capital 61,000,000
shares |
610,000,000 |
610,000,000 |
|
Capital Paid |
610,000,000 |
610,000,000 |
|
Retained Earning -
Unappropriated |
538,003,995 |
488,456,975 |
|
Total Shareholders' Equity |
1,148,003,995 |
1,098,456,975 |
|
Total Liabilities &
Shareholders' Equity |
1,756,706,116 |
1,562,373,874 |
PROFIT & LOSS ACCOUNT
|
Sale |
2011 |
2010 |
|
|
|
|
|
Sales Income |
741,749,490 |
707,879,068 |
|
Other Income |
17,920,703 |
1,110,529 |
|
Total Sales |
759,670,193 |
708,989,597 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
616,323,999 |
560,421,494 |
|
Selling Expenses |
29,749,852 |
15,707,348 |
|
Administrative Expenses |
53,565,933 |
48,926,795 |
|
Loss on Exchange Rate |
- |
1,053,697 |
|
Total Expenses |
699,639,784 |
626,109,334 |
|
Profit Before Financial Cost |
60,030,409 |
82,880,263 |
|
Financial Cost |
[10,483,389] |
[2,566,823] |
|
Net Profit / [Loss] |
49,547,020 |
80,313,440 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.17 |
1.93 |
|
QUICK RATIO |
TIMES |
0.18 |
0.57 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.56 |
0.56 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.42 |
0.45 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
144.95 |
119.25 |
|
INVENTORY TURNOVER |
TIMES |
2.52 |
3.06 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
26.28 |
41.33 |
|
RECEIVABLES TURNOVER |
TIMES |
13.89 |
8.83 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
14.45 |
4.51 |
|
CASH CONVERSION CYCLE |
DAYS |
156.77 |
156.07 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
83.09 |
79.17 |
|
SELLING & ADMINISTRATION |
% |
11.23 |
9.13 |
|
INTEREST |
% |
1.41 |
0.36 |
|
GROSS PROFIT MARGIN |
% |
19.33 |
20.99 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
8.09 |
11.71 |
|
NET PROFIT MARGIN |
% |
6.68 |
11.35 |
|
RETURN ON EQUITY |
% |
4.32 |
7.31 |
|
RETURN ON ASSET |
% |
2.82 |
5.14 |
|
EARNING PER SHARE |
BAHT |
0.81 |
1.32 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.35 |
0.30 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.53 |
0.42 |
|
TIME INTEREST EARNED |
TIMES |
5.73 |
32.29 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
4.78 |
|
|
OPERATING PROFIT |
% |
(27.57) |
|
|
NET PROFIT |
% |
(38.31) |
|
|
FIXED ASSETS |
% |
5.38 |
|
|
TOTAL ASSETS |
% |
12.44 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
19.33 |
Impressive |
Industrial
Average |
2.15 |
|
Net Profit Margin |
6.68 |
Impressive |
Industrial
Average |
1.60 |
|
Return on Assets |
2.82 |
Deteriorated |
Industrial
Average |
9.73 |
|
Return on Equity |
4.32 |
Deteriorated |
Industrial
Average |
17.80 |
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 19.33%. 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 6.68% 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. When compared with the
industry average, it was lower, the company's figure is 2.82%.
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. When compared with the
industry average, it was lower, the company's figure is 4.32%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY RATIO
|
Current Ratio |
1.17 |
Acceptable |
Industrial Average |
1.95 |
|
Quick Ratio |
0.18 |
|
|
|
|
Cash Conversion Cycle |
156.77 |
|
|
|
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 1.17 times in 2011, decreased from 1.93 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 0.18 times in 2011,
decreased from 0.57 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 157 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.35 |
Impressive |
Industrial
Average |
0.41 |
|
Debt to Equity Ratio |
0.53 |
Impressive |
Industrial
Average |
0.80 |
|
Times Interest Earned |
5.73 |
Acceptable |
Industrial
Average |
11.11 |
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 5.73 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 0.35 less than 0.5, most of the company's
assets are financed through equity.
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 |
0.56 |
Deteriorated |
Industrial
Average |
7.79 |
|
Total Assets Turnover |
0.42 |
Deteriorated |
Industrial
Average |
4.63 |
|
Inventory Conversion Period |
144.95 |
|
|
|
|
Inventory Turnover |
2.52 |
Deteriorated |
Industrial
Average |
16.80 |
|
Receivables Conversion Period |
26.28 |
|
|
|
|
Receivables Turnover |
13.89 |
Acceptable |
Industrial
Average |
18.90 |
|
Payables Conversion Period |
14.45 |
|
|
|
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.51.20 |
|
UK Pound |
1 |
Rs.81.50 |
|
Euro |
1 |
Rs.67.15 |
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.