MIRA
INFORM REPORT
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Report Date : |
07.11.2012 |
IDENTIFICATION DETAILS
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Name : |
HUKAMCHAND COMPANY LIMITED |
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Registered Office : |
435, 437, |
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Country : |
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Financials (as on) : |
30.06.2011 |
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Date of Incorporation : |
24.08.2006 |
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Com. Reg. No.: |
0105549102004 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Distributor of Food Ingredients and Agricultural Products |
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No. of Employees : |
10 |
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RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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Thailand |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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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 |
THAILAND - ECONOMIC OVERVIEW
With a well-developed infrastructure,
a free-enterprise economy, generally pro-investment policies, and strong export
industries, Thailand enjoyed solid growth from 2000 to 2007 - averaging more
than 4% per year - as it recovered from the Asian financial crisis of 1997-98.
Thai exports - mostly machinery and electronic components, agricultural
commodities, and jewelry - continue to drive the economy, accounting for more
than half of GDP. The global financial crisis of 2008-09 severely cut
Thailand's exports, with most sectors experiencing double-digit drops. In 2009,
the economy contracted 2.3%. In 2010, Thailand's economy expanded 7.8%, its
fastest pace since 1995, as exports rebounded from their depressed 2009 level.
Steady economic growth at just below 4% during the first three quarters of 2011
was interrupted by historic flooding in October and November in the industrial
areas north of Bangkok, crippling the manufacturing sector and leading to a
revised growth rate of only 0.1% for the year. The industrial sector is poised
to recover from the second quarter of 2012 onward, however, and the government
anticipates the economy will probably grow between 5.5 and 6.5% for 2012, while
private sector forecasts range between 3.8% and 5.7%.
Source : CIA
Company name
HUKAMCHAND
COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 435, 437, 439 SRIVIENG
ROAD, SILOM,
BANGRAK, BANGKOK
10500
TELEPHONE : [66] 2616-1004-6,
2234-5582, 2630-7383
FAX :
[66] 2616-1002,
2236-6370
E-MAIL
ADDRESS : hukamchand@hukamchand.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2006
REGISTRATION
NO. : 0105549102004
TAX
ID NO. : 3032387811
CAPITAL REGISTERED : BHT. 1,000,000
CAPITAL PAID-UP : BHT.
1,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : JUNE
30
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. VERA ARORA,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 10
LINES
OF BUSINESS : FOOD
INGREDIENTS AND AGRICULTURAL
PRODUCTS
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 August 24,
2006 as a
private limited company under
the registered name HUKAMCHAN COMPANY
LIMITED by Thai groups,
with the business
objective to import
and distribute various
kinds of food
ingredients and agricultural
products to domestic
markets. It currently
employs 10 staff.
The
subject’s registered address
is 435, 437, 439 Srivieng Rd.,
Silom, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
Mr. Vera Arora
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Vera Arora is
the Managing Director.
He is Thai
nationality with the
age of 75
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing
various kinds of
food ingredients and
agricultural products, such
as “QBB” Pure Ghee [Pure
butter ghee], “KOHINOOR” Basmatic Rice, “JK”
Spices, “TATA” Tea Products
and etc., as
well as importing,
re-packaging and distributing
of Almond & Beans, Wheat
Flour and Cereals
under its own
brand “HUKAMCHAND-BANGRAK”.
The “HUKAMCHAN-BANGRAK” products
are packed by
Siam Dal Mill
Limited Partnership, the subject’s
related company.
PURCHASE
The products are
imported from Australia
and India, as
well as purchasing
from local suppliers.
MAJOR
SUPPLIERS
Satnam
Overseas Ltd. :
India
Siam
Dal Mill Limited
Partnership : Thailand
SALES
100% of the
products is sold
locally to wholesalers,
retailers and end-users.
RELATED AND
AFFILIATED COMPANY
Siam Dal Mill
Limited Partnership
Business Type :
Importing, and distributing
of agricultural and
ingredient products,
as well as
agro-milling business.
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
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject currently employs
approximately 10 staff.
LOCATION DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in a prime commercial
area.
Branch
office : 100/3 Moo
6, Thonburi-Pakthor Rd.,
Samaedam, Bangkhunthien,
Bangkok
10150.
COMMENT
Rising
demand of food products
from local consumption has
sustained the subject’s
business growth in
the year 2012.
Subject has retained
its place in local market to provide quality
products, as well
as potential for
the future prospect
as assuming growth
continues with current
trends.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 1,000,000
divided into 1,000
shares of Bht.
1,000 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
October 31, 2011]
|
NAME |
HOLDING |
% |
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Mr. Vera Arora Nationality: Thai Address : 45/1
Charasvieng Rd., Silom,
Bangrak,
Bangkok |
697 |
69.70 |
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Mr. Krisana Arora Nationality: Thai Address : 45/1
Charasvieng Rd., Silom,
Bangrak, Bangkok |
100 |
10.00 |
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Mr. Manoch Arora Nationality: Thai Address : 118
Moo 1, Changkwa,
Kanchanadis, Suratthani |
100 |
10.00 |
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Mr. Asawin Arora Nationality: Thai Address : 435, 437, 439 Srivieng
Rd., Silom,
Bangrak, Bangkok |
100 |
10.00 |
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Mrs. Rakcha Arora Nationality: Thai Address : 45/1
Charasvieng Rd., Silom,
Bangrak,
Bangkok |
1 |
0.10 |
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Mrs. Rasmee Arora Nationality: Thai Address : 435, 437, 439 Srivieng
Rd., Silom,
Bangrak, Bangkok |
1 |
0.10 |
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Mrs. Ratchanida Arora Nationality: Thai Address : 435, 437, 439 Srivieng
Rd., Silom,
Bangrak, Bangkok |
1 |
0.10 |
Total Shareholders : 7
Share Structure [as
at October 31,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
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Thai |
7 |
1,000 |
100.00 |
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Foreign |
- |
- |
- |
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Total |
7 |
1,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Sasithorn Ongvisith No.
4954
BALANCE SHEET [BAHT]
The
latest financial figures
published for June
30, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
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Cash and Cash Equivalents |
2,594,827.70 |
7,726,061.79 |
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Inventories |
7,597,432.00 |
6,698,230.00 |
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Other Current Assets
|
2,316,434.00 |
870,223.03 |
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Total Current Assets
|
12,508,693.70 |
15,294,514.82 |
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Fixed Assets |
5,786,048.44 |
1,524,576.67 |
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Total Assets |
18,294,742.14 |
16,819,091.49 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
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Short-term Loan from
Person or Related Company |
12,060,000.00 |
10,750,000.00 |
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Accrued Expenses |
105,639.04 |
201,532.77 |
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Other Current Liabilities |
129,182.00 |
775.00 |
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Total Current Liabilities |
12,294,821.04 |
10,952,307.77 |
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Total Liabilities |
12,294,821.04 |
10,952,307.77 |
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Shareholders' Equity |
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Share capital : Baht 1,000
value authorized, issued
and fully paid share
capital 1,000 shares |
1,000,000.00 |
1,000,000.00 |
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Capital Paid |
1,000,000.00 |
1,000,000.00 |
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Retained Earning - Unappropriated |
4,999,921.10 |
4,866,783.72 |
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Total Shareholders' Equity |
5,999,921.10 |
5,866,783.72 |
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Total Liabilities & Shareholders' Equity |
18,294,742.14 |
16,819,091.49 |
PROFIT & LOSS ACCOUNT
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Revenue |
2011 |
2010 |
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Sales Income |
26,306,764.32 |
30,272,271.21 |
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Other Income |
109,944.94 |
96,485.45 |
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Total Revenues |
26,416,709.26 |
30,368,756.66 |
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Expenses |
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Change in Finished Goods |
[899,202.00] |
[3,619,097.00] |
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Purchase of Goods |
23,488,958.07 |
28,691,866.85 |
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Employees Expenses |
2,346,900.00 |
2,248,118.00 |
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Depreciation |
125,783.13 |
93,312.09 |
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Other Expenses |
1,020,117.43 |
1,159,895.90 |
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Total Expenses |
26,082,556.63 |
28,574,095.84 |
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Profit / [Loss] before Income Tax |
334,152.63 |
1,794,660.82 |
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Income Tax |
[201,015.25] |
[333,954.81] |
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Net Profit / [Loss] |
133,137.38 |
1,460,706.01 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
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LIQUIDITY RATIO |
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CURRENT RATIO |
TIMES |
1.02 |
1.40 |
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QUICK RATIO |
TIMES |
0.21 |
0.71 |
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ACTIVITY RATIO |
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FIXED ASSETS TURNOVER |
TIMES |
4.55 |
19.86 |
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TOTAL ASSETS TURNOVER |
TIMES |
1.44 |
1.80 |
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INVENTORY CONVERSION PERIOD |
DAYS |
118.06 |
85.21 |
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INVENTORY TURNOVER |
TIMES |
3.09 |
4.28 |
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RECEIVABLES CONVERSION PERIOD |
DAYS |
- |
- |
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RECEIVABLES TURNOVER |
TIMES |
- |
- |
|
PAYABLES CONVERSION PERIOD |
DAYS |
- |
- |
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CASH CONVERSION CYCLE |
DAYS |
118.06 |
85.21 |
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PROFITABILITY
RATIO |
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COST OF GOODS SOLD |
% |
89.29 |
94.78 |
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SELLING & ADMINISTRATION |
% |
5.98 |
(4.22) |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
11.13 |
5.54 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.27 |
5.93 |
|
NET PROFIT MARGIN |
% |
0.51 |
4.83 |
|
RETURN ON EQUITY |
% |
2.22 |
24.90 |
|
RETURN ON ASSET |
% |
0.73 |
8.68 |
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EARNING PER SHARE |
BAHT |
133.14 |
1,460.71 |
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LEVERAGE RATIO |
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DEBT RATIO |
TIMES |
0.67 |
0.65 |
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DEBT TO EQUITY RATIO |
TIMES |
2.05 |
1.87 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
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ANNUAL GROWTH |
|
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SALES GROWTH |
% |
(13.10) |
|
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OPERATING PROFIT |
% |
(81.38) |
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NET PROFIT |
% |
(90.89) |
|
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FIXED ASSETS |
% |
279.52 |
|
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TOTAL ASSETS |
% |
8.77 |
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PROFITABILITY
RATIO
|
Gross Profit Margin |
11.13 |
Impressive |
Industrial Average |
6.47 |
|
Net Profit Margin |
0.51 |
Impressive |
Industrial
Average |
0.43 |
|
Return on Assets |
0.73 |
Acceptable |
Industrial
Average |
1.42 |
|
Return on Equity |
2.22 |
Deteriorated |
Industrial
Average |
4.61 |
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 11.13%. 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 0.51%,
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. When compared with the
industry average, it was lower, the company's figure is 0.73%.
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 2.22%.
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 |
1.02 |
Satisfactory |
Industrial
Average |
1.25 |
|
Quick Ratio |
0.21 |
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Cash Conversion Cycle |
118.06 |
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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 1.02 times in 2011, decreased from 1.4 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 0.21 times in 2011,
decreased from 0.71 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 119 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.67 |
Impressive |
Industrial
Average |
0.67 |
|
Debt to Equity Ratio |
2.05 |
Acceptable |
Industrial
Average |
2.08 |
|
Times Interest Earned |
- |
|
Industrial
Average |
0.74 |
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.67 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 |
4.55 |
Acceptable |
Industrial
Average |
7.17 |
|
Total Assets Turnover |
1.44 |
Deteriorated |
Industrial
Average |
3.36 |
|
Inventory Conversion Period |
118.06 |
|
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Inventory Turnover |
3.09 |
Deteriorated |
Industrial
Average |
6.63 |
|
Receivables Conversion Period |
- |
|
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|
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Receivables Turnover |
- |
|
Industrial
Average |
7.41 |
|
Payables Conversion Period |
- |
|
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|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Downtrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.59 |
|
|
1 |
Rs.87.31 |
|
Euro |
1 |
Rs.69.86 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.