MIRA
INFORM REPORT
|
Report Date : |
16.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
LIANGCHI INDUSTRY
[THAILAND] CO., LTD. |
|
|
|
|
Registered Office : |
1029 Num Krai
Industrial Zone, Luang-Paeng Road,
T. Tabyao, A. Ladkrabang,
Bangkok 10520 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
30.04.1987 |
|
|
|
|
Com. Reg. No.: |
0105530021017 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor
and Exporter of Cooling Towers
and Related Products |
|
|
|
|
No. of Employees : |
240 |
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 |
|
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 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
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
LIANGCHI
INDUSTRY [THAILAND] CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 1029
NUM KRAI INDUSTRIAL
ZONE,
LUANG-PAENG ROAD,
T. TABYAO,
A. LADKRABANG,
BANGKOK 10520
TELEPHONE : [66] 2738-1788,
086 170-4561
FAX :
[66] 2738-1780-2,
2738-1778
E-MAIL
ADDRESS : salescenter@liangchi.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1987
REGISTRATION
NO. : 0105530021017
CAPITAL REGISTERED : BHT. 100,000,000
CAPITAL PAID-UP : BHT.
100,000,000
SHAREHOLDER’S PROPORTION : THAI : 93%
TAIWANESE :
7%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. KANIN CHAYANGPHAT,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 240
LINES
OF BUSINESS : COOLING TOWERS
AND RELATED PRODUCTS
MANUFACTURER, DISTRIBUTOR
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 April 30,
1987 as a
private limited company under
the name style LIANGCHI INDUSTRY [THAILAND] CO., LTD.,
by Thai and Taiwanese
groups, with the business
objective to manufacture
cooling tower and
related equipment to both
domestic and international
markets. It currently
employs 240 staff.
It
has been awarded
the ISO 9002
certificate in 1998.
The
subject’s registered address was
223 Moo 9, T. Tabyao,
A. Ladkrabang, Bangkok 10520.
In
2010 the subject’s
registered address was
changed from “223
Moo 9” to “1029”
by the Ladkrabang
District office, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Suthanee Chayangphat |
|
Thai |
45 |
|
Mr. Kanin Chayangphat |
[x] |
Thai |
48 |
|
Mr. Chang Hen Chin |
|
Taiwanese |
55 |
|
Mr. Chang Kuan Po |
|
Taiwanese |
73 |
|
Mr. Lin Chao Chin |
|
Taiwanese |
74 |
|
Mr. Lin Cheng Wen |
|
Taiwanese |
49 |
|
Mr. Lee Yun Peng |
|
Taiwanese |
41 |
Mrs. Suthanee Chayangphat
[Former name: Mrs. Sunee Nithiwuthitrakul]
AUTHORIZED PERSON
Only the mentioned
director [x] can
sign on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Kanin Chayangphat is
the Managing Director.
He is Thai
nationality with the
age of 48
years old.
Mr. Atthaporn Chatchawala is
the Marketing Manager.
He is Thai
nationality.
Ms. Phenchit Prueksachartkul is
the Factory Manager
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
and distributing wide
range of cooling
tower, spare parts and
related products, including
chemical tanks, water
tanks, septic tank,
lining and etc.,
for various industries,
such as electronics,
foods, hotels and
hospital businesses.
BRAND NAME
“LIANG CHI”
PURCHASE
Raw material and
equipment are purchased
from suppliers and
agents in both
domestic and overseas,
mainly Taiwan, Republic
of China, Japan
and U.S.A.
MAJOR SUPPLIER
Shanghai
Liang Chi Cooling
Equipment Co., Ltd.
: Republic of
China
SALES
60% of the
products are sold
locally by wholesale
to manufacturer mainly
in electronic, food,
hotel, hospital, supermarket
and other industries.
EXPORT
40% of the products are
exported to Middle East
countries, Indonesia, U.S.A., Singapore and
Taiwan.
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
or 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
or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
The Siam Commercial
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs 240
staff.
LOCATION DETAILS
The
premise is owned for
administrative office, factory and warehouse at
the heading address. Premise
is located in
industrial area.
REMARK
MAXIMUM
CREDIT SHOULD BE GRANTED
AT US$ 2,000,000.
COMMENT
The
subject was formed in
1987 as a
manufacturer, distributor
and exporter of cooling
tower and related
parts. The products
are for industrial
plant. Subject’s sales
had increased in
line with moderate
growth of industrial
sector. However, its
current sales are
likely slow from
economic uncertainties and
industrial expansion slowdown
compared to the same
period of the
previous year.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 6,000,000 divided
into 6,000 shares of Bht. 1,000
each.
The
capital was increased
later as following:
Bht. 8,000,000
on August 30,
1988
Bht. 40,000,000
on April 10,
1996
Bht.
100,000,000 on January 8, 1998
The
latest registered capital
was increased to Bht. 100 million, divided into
100,000 shares of
Bht. 1,000 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE
[as
at May 15,
2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Suthanee Chayangphat Nationality: Thai Address : 701/1603
Pattanakarn 30 Rd.,
Suanluang, Bangkok |
45,000 |
45.00 |
|
Mr. Kanin Chayangphat Nationality: Thai Address : 580 Sukhumvit 54
Rd., Bangchak,
Prakanong, Bangkok |
44,000 |
44.00 |
|
Mr. Lin Chao Chin Nationality: Taiwanese Address : Taipei,
Taiwan |
3,000 |
3.00 |
|
Mrs. Phenjit Pruksachartkul Nationality: Thai Address : 627/16
Sathupradit Rd., Bangpongpang,
Yannawa, Bangkok |
2,000 |
2.00 |
Mr. Lin Juen
Jue
Nationality: Taiwanese Address : 1029
Luang-paeng Rd., Thabyao,
Ladkrabang, Bangkok |
2,000 |
2.00 |
|
Mr. Lee Yun Peng Nationality: Taiwanese Address : 100/372
Moo 6, Lamplatiew,
Ladkrabang, Bangkok |
2,000 |
2.00 |
|
Ms. Ampawan Puangpetch Nationality: Thai Address : 62/262
Moo 5, Jarakaebua,
Ladprao, Bangkok |
2,000 |
2.00 |
Total Shareholders : 7
Share Structure [as
at May 15,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
93,000 |
93.00 |
|
Taiwanese |
3 |
7,000 |
7.00 |
|
Total |
7 |
100,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Kittisak Mrthachavalit No.
4073
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash in hand
& at Bank
|
15,288,762.99 |
14,784,300.55 |
|
Short-term Investment |
187,631.93 |
5,184,295.04 |
|
Trade Accounts Receivable
|
90,695,573.52 |
58,018,257.38 |
|
Inventories |
80,977,133.28 |
70,890,690.81 |
|
Short-term Loan to Related
Company |
88,000,000.00 |
88,000,000.00 |
|
Advanced Money |
7,205,684.87 |
7,705,605.48 |
|
Accrued Income |
569,506.85 |
11,543,789.18 |
|
Other Current Assets
|
4,368,870.72 |
7,901,603.08 |
|
Total Current Assets
|
287,293,164.16 |
264,028,541.52 |
|
Long-term Investment |
50,075,845.20 |
51,704,580.71 |
|
Fixed Assets |
235,652,039.53 |
217,890,046.85 |
|
Other Assets |
8,320,478.53 |
10,528,354.69 |
|
Total Assets |
581,341,527.42 |
544,151,523.77 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
42,000,000.00 |
30,000,000.00 |
|
Trade Accounts Payable |
251,960,129.73 |
253,263,808.03 |
|
Current Portion of Long-term Loan |
3,600,000.00 |
9,470,000.00 |
|
Short-term Loan |
2,423,704.00 |
2,692,000.00 |
|
Accrued Interest |
61,836,241.59 |
57,782,544.85 |
|
Accrued Income Tax |
7,222,490.23 |
- |
|
Other Current Liabilities |
42,305,493.87 |
28,814,319.80 |
|
Total Current Liabilities |
411,348,059.42 |
382,022,672.68 |
|
Long-term Loan from Person & Related Company |
4,809,117.14 |
9,331,092.03 |
|
Other Liabilities |
685,888.99 |
868,974.06 |
|
Total Liabilities |
416,843,065.55 |
392,222,738.77 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 1,000
value authorized, issued
and fully paid share
capital 100,000 shares |
100,000,000.00 |
100,000,000.00 |
|
Capital Paid |
100,000,000.00 |
100,000,000.00 |
|
Unrealized Loss on
Marketable Securities |
440,298.20 |
[161,405.29] |
|
Retained Earning Appropriated for
Statutory Reserve |
10,000,000.00 |
10,000,000.00 |
|
Unappropriated |
54,058,163.67 |
42,090,190.29 |
|
Total Shareholders' Equity |
164,498,461.87 |
151,928,785.00 |
|
Total Liabilities &
Shareholders' Equity |
581,341,527.42 |
544,151,523.77 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales Income |
310,443,217.01 |
248,709,294.00 |
|
Services Income |
28,975,647.88 |
23,281,148.38 |
|
Other Income |
39,872,660.24 |
23,327,021.03 |
|
Total Revenues |
379,291,525.13 |
295,317,463.41 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
235,284,711.51 |
195,740,701.21 |
|
Selling and Administrative Expenses |
93,634,377.27 |
72,452,874.25 |
|
Total Expenses |
328,919,088.78 |
268,193,575.46 |
|
Profit / [Loss] before Interest
Expenses & Income Tax |
50,372,436.35 |
27,123,887.95 |
|
Interest Expenses |
[23,508,104.48] |
[25,754,760.88] |
|
Profit / [Loss] before Income Tax |
26,864,331.87 |
1,369,127.07 |
|
Income Tax |
[9,996,358.49] |
[528,401.41] |
|
Net Profit / [Loss] |
16,867,973.38 |
840,725.66 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.70 |
0.69 |
|
QUICK RATIO |
TIMES |
0.26 |
0.20 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.44 |
1.25 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.58 |
0.50 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
125.62 |
132.19 |
|
INVENTORY TURNOVER |
TIMES |
2.91 |
2.76 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
97.53 |
77.86 |
|
RECEIVABLES TURNOVER |
TIMES |
3.74 |
4.69 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
390.87 |
472.26 |
|
CASH CONVERSION CYCLE |
DAYS |
(167.72) |
(262.22) |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
69.32 |
71.97 |
|
SELLING & ADMINISTRATION |
% |
27.59 |
26.64 |
|
INTEREST |
% |
6.93 |
9.47 |
|
GROSS PROFIT MARGIN |
% |
42.43 |
36.61 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
14.84 |
9.97 |
|
NET PROFIT MARGIN |
% |
4.97 |
0.31 |
|
RETURN ON EQUITY |
% |
10.25 |
0.55 |
|
RETURN ON ASSET |
% |
2.90 |
0.15 |
|
EARNING PER SHARE |
BAHT |
168.68 |
8.41 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.72 |
0.72 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.53 |
2.58 |
|
TIME INTEREST EARNED |
TIMES |
2.14 |
1.05 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
24.79 |
|
|
OPERATING PROFIT |
% |
85.71 |
|
|
NET PROFIT |
% |
1,906.36 |
|
|
FIXED ASSETS |
% |
8.15 |
|
|
TOTAL ASSETS |
% |
6.83 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
42.43 |
Impressive |
Industrial
Average |
24.36 |
|
Net Profit Margin |
4.97 |
Impressive |
Industrial
Average |
(3.33) |
|
Return on Assets |
2.90 |
Impressive |
Industrial
Average |
1.85 |
|
Return on Equity |
10.25 |
Impressive |
Industrial
Average |
7.50 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from revenues 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 42.43%. 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 4.97%, 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
2.9%, 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 10.25%, 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 |
0.70 |
Risky |
Industrial
Average |
14.36 |
|
Quick Ratio |
0.26 |
|
|
|
|
Cash Conversion Cycle |
(167.72) |
|
|
|
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 0.7 times in 2010, increased from 0.69 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 0.26 times in 2010,
increased from 0.2 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 -168 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.72 |
Impressive |
Industrial
Average |
0.72 |
|
Debt to Equity Ratio |
2.53 |
Risky |
Industrial
Average |
2.18 |
|
Times Interest Earned |
2.14 |
Deteriorated |
Industrial
Average |
928.35 |
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 2.15 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 0.72 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 |
1.44 |
Deteriorated |
Industrial
Average |
91.40 |
|
Total Assets Turnover |
0.58 |
Deteriorated |
Industrial
Average |
1.74 |
|
Inventory Conversion Period |
125.62 |
|
|
|
|
Inventory Turnover |
2.91 |
Deteriorated |
Industrial
Average |
12.39 |
|
Receivables Conversion Period |
97.53 |
|
|
|
|
Receivables Turnover |
3.74 |
Deteriorated |
Industrial
Average |
11.96 |
|
Payables Conversion Period |
390.87 |
|
|
|
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.51.43 |
|
|
1 |
Rs.79.10 |
|
Euro |
1 |
Rs.66.17 |
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.