MIRA
INFORM REPORT
|
Report Date : |
19.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
GATEWAY
EQUIPMENT LTD. |
|
|
|
|
Formerly Known As : |
SPORTS TURF
SOLUTIONS [ |
|
|
|
|
Registered Office : |
254 Soi
Ladprao 107, |
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|
Country : |
|
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|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
29.06.2005 |
|
|
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Com. Reg. No.: |
0105548084517 |
|
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|
Legal Form : |
Private Limited
Company |
|
|
|
|
Line of Business : |
Importer
and distributor of golf
and golf course
equipment |
|
|
|
|
No. of Employees : |
17 |
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 |
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|
|
|
Payment Behaviour : |
Slow |
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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
GATEWAY
EQUIPMENT LTD.
[FORMER
: SPORTS TURF
SOLUTIONS [THAILAND] LTD.]
SUMMARY
BUSINESS
ADDRESS : 254
SOI LADPRAO 107,
LADPRAO ROAD,
KLONGCHAN,
BANGKAPI, BANGKOK 10240
TELEPHONE : [66] 2731-1992-5
FAX :
[66] 2731-1971,
2731-1997
E-MAIL
ADDRESS : contact@sportsturfsolutions.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2005
REGISTRATION NO. : 0105548084517
TAX ID NO. : 3380091644
CAPITAL REGISTERED
: BHT.
30,000,000
CAPITAL PAID-UP
: BHT.
30,000,000
SHAREHOLDER’S PROPORTION : THAI : 80%
SINGAPOREAN :
20%
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. ROJ DEJCHANNARONG., THAI
MANAGING DIRECTOR
NO.
OF STAFF : 17
LINES
OF BUSINESS : GOLF
AND GOLF COURSE
EQUIPMENT
IMPORTER AND
DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established on June
29, 2005 as a
private limited company
under the originally registered
name “RS Technology
and Marketing Co.,
Ltd.” by Thai
and Singaporean groups. On April 28,
2010, its registered
name was changed
to “Sports Turf
Solutions [Thailand] Ltd.”,
and finally changed
to GATEWAY EQUIPMENT
LTD., on April
23, 2012. Its
business objective is
to import and
distribute various kinds
of golf and golf course
equipment to domestic market.
It currently employs
approximately 17 staff.
The
subject is also
an affiliate of
Sports Turf Solutions
Pte. Ltd., in
Singapore.
The
subject’s registered address
is 254 Soi Ladprao 107,
Ladprao Rd., Klongchan, Bangkapi,
Bangkok 10240, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Roj Dejchannarong |
|
Thai |
66 |
|
Ms. Lisa Ann Barrett |
|
Thai |
39 |
|
Mr. Philip Charles Barrett |
|
Thai |
37 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Roj Dejchannarong is
the Managing Director.
He is Thai
nationality with the
age of 66
years old.
BUSINESS OPERATIONS
The subject
is engaged in importing
and distributing various
kinds of equipment
for golf sports and
golf course, such
as sand trapper,
grinders equipment, turf & battery for
golf cars, turf care machinery, golf
course hardware, soil &
fertilizer for golf
course, drain belt, bunker
liners and etc.
MAJOR BRANDS
“TURF
SHIELD”, “FLORATINE”, “ATLAS”,
“SIFON”, “HUNTER”, “TROJAN”,
“BERNHARD”, “WIEDENMANN”, “DAVID
GOLF” and etc.
PURCHASE
90% of the products
is imported from
U.S.A., United Kingdom, Australia,
Malaysia and Singapore,
the remaining 10% is purchased
from local suppliers.
MAJOR
SUPPLIERS
Trojan
Battery Company : U.S.A.
Hunter
Industries Inc. : U.S.A.
Floratine
Products Group Inc. : U.S.A.
Indian
Valley Industries Inc. : U.S.A.
Bernhard
and Company : U.K.
Wiedenmann
[U.K.] Ltd. : U.K.
David
Golf & Engineering Pty. Ltd. :
Australia
SALES
100% of the
products is sold
locally by wholesale
to traders and
end-users.
RELATED AND AFFILIATED
COMPANY
Flowco Co., Ltd.
Business Type :
Importer and distributor
of petroleum equipment.
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
T/T.
BANKING
Kasikornbank
Public Co., Ltd.
EMPLOYMENT
The
subject employs 17
staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
COMMENT
The subject has commenced its
commercial business activities in 2010.
Its first year
operating performance was not
satisfactory. However, it
revealed an increase
in sales revenue
in 2011 comparing to the
previous year.
In
2011, the subject
has expanded its
customer base nationwide
with more variety
of new products
to satisfy its customer’s needs.
At present, the
subject has more
customers nationwide. The recent
flood crisis in
Thailand has no
impact on the
subject’s business, it
is still operating
normally. Generally, the subject’s
business has a good prospect
from an increase
in number of
Thailand’s golf lovers
on a yearly
basis.
Strong
growth has seen
after floods from
replacement and repairing.
FINANCIAL INFORMATION
The
capital was registered at
Bht. 1,000,000 divided into
10,000 shares of Bht. 100
each with fully
paid.
The
capital was increased
later as follows:
Bht. 20,000,000
on December 1,
2010
Bht. 30,000,000
on April 23,
2012
The
latest registered capital
was increased to
Bht. 30,000,000 divided into
300,000 shares of
Bht. 100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 19, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Lisa Ann Barrett Nationality: Thai Address : 15
Soi 16, Seri
2 Rd., Suanluang,
Bangkok |
63,340 |
21.12 |
|
Mr. Philip Charles Barrett Nationality: Thai Address : 15
Soi 16, Seri
2 Rd., Suanluang,
Bangkok |
63,330 |
21.11 |
|
Mr. Thomas William Barrett Nationality: Thai Address : 15
Soi 16, Seri
2 Rd., Suanluang,
Bangkok |
63,330 |
21.11 |
|
Sports Turf Solutions
Pte. Ltd. Nationality: Singaporean Address :
#01-25 Northlink Building, 10
Admiralty Street, Singapore
757695 |
60,000 |
20.00 |
|
Boonchong Co., Ltd. Nationality: Thai Address : 254
Ladprao 107 Rd.,
Klongchan,
Bangkapi, Bangkok |
15,000 |
5.00 |
|
Mr. Ong-arj Kiatpiriyapong Nationality: Thai Address : 23
Soi Laemthong 2
Village,
Suanluang, Bangkok |
15,000 |
5.00 |
|
Mrs. Kannikar Tevavitchulada Nationality: Thai Address : 67
Trok Wadratchanadda, Bovornnives,
Phranakorn, Bangkok |
10,000 |
3.33 |
|
Mrs. Somsri Songserm Nationality: Thai Address : 37/18
Moo 3, Ladsawai,
Lamlukka, Pathumthani |
10,000 |
3.33 |
Total Shareholders : 8
Share Structure [as
at April 19, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
240,000 |
80.00 |
|
Singaporean |
1 |
60,000 |
20.00 |
|
Total |
8 |
300,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Arisara Ratanawongpibul No.
4150
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalent |
2,363,605.49 |
2,497,027.99 |
|
Trade Accounts Receivable |
12,787,440.23 |
2,659,837.71 |
|
Inventories |
8,791,294.28 |
5,433,741.05 |
|
Fixed Deposit pledged
as Collateral |
9,960,124.74 |
- |
|
Other Current Assets |
788,117.39 |
10,255,748.53 |
|
|
|
|
|
Total Current Assets
|
34,690,582.13 |
20,846,355.28 |
|
|
|
|
|
Fixed Assets |
847,093.66 |
624,238.88 |
|
Total Assets |
35,537,675.79 |
21,470,594.16 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts Payable |
10,269,362.18 |
1,076,294.66 |
|
Current Portion of Financial
Lease Contract Liabilities |
73,317.78 |
140,153.78 |
|
Loan Payable - Director |
3,000,000.00 |
- |
|
Loan Contract |
4,500,000.00 |
- |
|
Other Current Liabilities |
1,557,734.29 |
375,273.76 |
|
|
|
|
|
Total Current Liabilities |
19,400,414.25 |
1,591,722.20 |
|
|
|
|
|
Financial Lease Contract
Liabilities, net of Current Portion |
- |
79,799.56 |
|
Total Liabilities |
19,400,414.25 |
1,671,521.76 |
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 200,000 shares |
20,000,000.00 |
20,000,000.00 |
|
|
|
|
|
Capital Paid |
20,000,000.00 |
20,000,000.00 |
|
Retained Earning -
Unappropriated [deficit] |
[3,862,738.46] |
[200,927.60] |
|
Total Shareholders' Equity |
16,137,261.54 |
19,799,072.40 |
|
Total Liabilities & Shareholders' Equity |
35,537,675.79 |
21,470,594.16 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales Income |
54,695,606.00 |
6,225,918.00 |
|
Other Income |
376,377.90 |
56,614.67 |
|
Total Revenues |
55,071,983.90 |
6,282,532.67 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
42,035,895.33 |
4,792,045.54 |
|
Selling and Administrative Expenses |
16,018,754.27 |
3,319,989.66 |
|
Other Expenses |
498,012.09 |
- |
|
Total Expenses |
58,552,661.69 |
8,112,035.20 |
|
|
|
|
|
Profit / [Loss] before Finance
Costs |
[3,480,677.79] |
[1,829,502.53] |
|
Finance Costs |
[181,133.07] |
[5,493.07] |
|
|
|
|
|
Net Profit / [Loss] |
[3,661,810.86] |
[1,834,995.60] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.79 |
13.10 |
|
QUICK RATIO |
TIMES |
0.78 |
3.24 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
64.57 |
9.97 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.54 |
0.29 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
76.34 |
413.88 |
|
INVENTORY TURNOVER |
TIMES |
4.78 |
0.88 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
85.33 |
155.94 |
|
RECEIVABLES TURNOVER |
TIMES |
4.28 |
2.34 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
89.17 |
81.98 |
|
CASH CONVERSION CYCLE |
DAYS |
72.50 |
487.83 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
76.85 |
76.97 |
|
SELLING & ADMINISTRATION |
% |
29.29 |
53.33 |
|
INTEREST |
% |
0.33 |
0.09 |
|
GROSS PROFIT MARGIN |
% |
23.83 |
23.94 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(6.36) |
(29.39) |
|
NET PROFIT MARGIN |
% |
(6.69) |
(29.47) |
|
RETURN ON EQUITY |
% |
(22.69) |
(9.27) |
|
RETURN ON ASSET |
% |
(10.30) |
(8.55) |
|
EARNING PER SHARE |
BAHT |
(18.31) |
(9.17) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.55 |
0.08 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.20 |
0.08 |
|
TIME INTEREST EARNED |
TIMES |
(19.22) |
(333.06) |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
778.51 |
|
|
OPERATING PROFIT |
% |
90.25 |
|
|
NET PROFIT |
% |
(99.55) |
|
|
FIXED ASSETS |
% |
35.70 |
|
|
TOTAL ASSETS |
% |
65.52 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
23.83 |
Satisfactory |
Industrial Average |
30.38 |
|
Net Profit Margin |
(6.69) |
Deteriorated |
Industrial Average |
4.05 |
|
Return on Assets |
(10.30) |
Deteriorated |
Industrial Average |
4.37 |
|
Return on Equity |
(22.69) |
Deteriorated |
Industrial Average |
8.63 |
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 23.83%. When compared with
the industry average, the ratio of the company was lower. This indicated that company was originated
from the company may have problems with control over its costs.
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 -6.69%.
When compared with the industry average, the ratio of the company was lower.
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 -10.3%.
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 -22.69%.
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 |
1.79 |
Satisfactory |
Industrial Average |
1.82 |
|
Quick Ratio |
0.78 |
|
|
|
|
Cash Conversion Cycle |
72.50 |
|
|
|
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 1.79 times in 2011, decrease from 13.1 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 0.78 times in 2011,
decrease from 3.24 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 73 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.55 |
Acceptable |
Industrial Average |
0.46 |
|
Debt to Equity Ratio |
1.20 |
Risky |
Industrial Average |
0.91 |
|
Times Interest Earned |
(19.22) |
Risky |
Industrial Average |
3.61 |
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 -19.22 lower than 1, so the company is not generating
enough cash from EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.55 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 Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
64.57 |
Impressive |
Industrial Average |
2.22 |
|
Total Assets Turnover |
1.54 |
Impressive |
Industrial Average |
1.06 |
|
Inventory Conversion Period |
76.34 |
|
|
|
|
Inventory Turnover |
4.78 |
Satisfactory |
Industrial Average |
5.44 |
|
Receivables Conversion Period |
85.33 |
|
|
|
|
Receivables Turnover |
4.28 |
Impressive |
Industrial Average |
3.45 |
|
Payables Conversion Period |
89.17 |
|
|
|
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 Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.88 |
|
UK Pound |
1 |
Rs.86.46 |
|
Euro |
1 |
Rs.69.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.