MIRA
INFORM REPORT
|
Report Date : |
09.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
PARAGON
MACHINERY CO., LTD. |
|
|
|
|
Registered Office : |
161/12-13
Vibhavadi
Rangsit
76 Road, Sikan, Donmuang, Bangkok
10210 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
25.09.1992 |
|
|
|
|
Com. Reg. No.: |
0105535133484 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Importer
and distributor of industrial
parts |
|
|
|
|
No. of Employees : |
90 |
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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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
PARAGON MACHINERY CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 161/12-13 VIBHAVADI
RANGSIT 76 ROAD,
SIKAN, DONMUANG,
BANGKOK 10210
TELEPHONE : [66] 2533-4415,
2996-8001-2, 2533-6483
FAX :
[66] 2533-5098,
2996-6693
E-MAIL ADDRESS : paragonnet@msn.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1992
REGISTRATION
NO. : 0105535133484
TAX
ID NO. : 3011181645
CAPITAL REGISTERED : BHT. 50,000,000
CAPITAL PAID-UP : BHT.
50,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. PEERAPONG CHEAWWATTANAKUL, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 90
LINES
OF BUSINESS : INDUSTRIAL PARTS
IMPORTER 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 September 25,
1992 as a
private limited company under
the name style
PARAGON MACHINERY CO.,
LTD., by Thai
groups, in order
to import and distribute wide
range of spare
parts for heavy
equipment and industrial
machinery to domestic
market. It currently
employs approximate 90
staff.
The subject’s registered address is
161/12-13 Vibhavadi Rangsit 76
Rd., Sikan, Donmuang, Bangkok
10210, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Peerapong Cheawwattanakul |
|
Thai |
48 |
|
Ms. Panida
Cheawwattanakul |
|
Thai |
44 |
|
Mr. Pichet
Cheawwattanakul |
|
Thai |
49 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Peerapong
Cheawwattanakul is
the Managing Director.
He is Thai
nationality with the
age of 48
years old.
Mr. Pisith
Cheawwattanakul is
the Finance & Account Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in importing and distributing wide
range of spare
parts for heavy
equipment and industrial
machinery, such as
chain, filter, motor
gear, single/twin rollers, top
rollers, seal, disc plate, hydraulic
components, motor swing
and miscellaneous parts,
as well as
after sale services.
MAJOR BRANDS
“ITRAC”, “KSC”, “SAMSUNG”,
“KOBELCO”, “CATERPILLAR”, “KOMATSU”,
“KATO”, “HITACHI”, “CUMMINS”,
“SUMITOMO”, “NIKKO”, “MITSUBISHI”
and etc.
PURCHASE
80% of the
products is imported
mainly from Germany,
and the rest
from U.S.A., Italy,
Japan, United Kingdom, Korea,
India, Republic of
China, Taiwan and
Malaysia, as well
as the remaining 20% is
purchased from
local suppliers.
MAJOR SUPPLIERS
Inter
Tractor GmbH. : Germany
Caterpillar
Corporate : U.S.A.
Komatsu
Ltd. : Japan
Gebr. Schumacher
GmbH. : Germany
SALES
100% of the
products is sold
locally to dealers,
manufacturers and end-users.
MAJOR CUSTOMER
Double A Co.,
Ltd. : Thailand
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 on the
credits term of
30-60 or T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Donmuang Branch,
Vibhavadi
Rangsit
Rd., Donmuang, Bangkok]
Kasikornbank Public
Co., Ltd.
[Donmuang Branch,
Vibhavadi
Rangsit
Rd., Donmuang, Bangkok]
EMPLOYMENT
The
subject employs approximately
90 office and
services staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
and warehouse at the heading
address. Premise is
located in commercial/residential area.
COMMENT
The subject is one of the leading
importers and distributors
of machinery and spare
parts in domestic market. Its
business performance in
2011 was outstanding
compared to the
previous year. Economy
improvement and industrial upturn
in 2011 have resulted to
increase demand of
industrial parts. Subject’s
current business is
excellent.
FINANCIAL
INFORMATION
The
capital was registered at
Bht. 1,000,000 divided into 10,000
shares of Bht.
100 each.
The
capital was increased
later as following:
Bht.
10,000,000 on May
25, 2000
Bht.
50,000,000 on September
3, 2007
The
latest registered capital
was increased to Bht. 50
million, divided into
500,000 shares of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
June 2, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Peerapong Cheawwattanakul Nationality: Thai Address : 22/62
Moo 9, Vibhavadi Rangsit Rd.,
Sikan, Donmuang, Bangkok |
90,000 |
18.00 |
|
Mr. Pichet
Cheawwattanakul Nationality: Thai Address : 73/14
Rama
4 Rd., Klongtoey, Bangkok |
85,000 |
17.00 |
|
Ms. Siriporn
Ariyawuthiphan Nationality: Thai Address : 22/62
Moo 9, Vibhavadi Rangsit Rd.,
Sikan, Donmuang, Bangkok |
65,000 |
13.00 |
|
Mr. Chatchai
Ariyawuthiphan Nationality: Thai Address : 129/16
Moo 9, Vibhavadi Rangsit Rd.,
Sikan, Donmuang, Bangkok |
65,000 |
13.00 |
|
Mr. Pipat
Cheawwattanakul Nationality: Thai Address : 73/5
Rama
4 Rd., Klongtoey, Bangkok |
65,000 |
13.00 |
|
Ms. Chantana
Ariyawuthiphan Nationality: Thai Address : 129/16
Moo 9, Vibhavadi Rangsit Rd.,
Sikan, Donmuang, Bangkok |
65,000 |
13.00 |
|
Ms. Panida
Cheawwattanakul Nationality: Thai Address : 73/5
Rama
4 Rd., Klongtoey, Bangkok |
65,000 |
13.00 |
Total Shareholders : 7
Share Structure [as
at June 2,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
500,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
500,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Mangkorn
Kanchanasai
No. 3467
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2011
& 2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash in Hand
& at Bank |
733,914.38 |
383,567.42 |
|
Trade Accounts & Other
Receivable |
741,676,695.97 |
89,092,240.21 |
|
Inventories |
182,329,268.59 |
180,918,107.35 |
|
|
|
|
|
Total Current Assets
|
924,739,878.94 |
270,393,914.98 |
|
Fixed Assets |
20,373,407.32 |
14,869,764.62 |
|
Other Assets |
142,609.00 |
87,109.00 |
|
Total Assets |
945,255,895.26 |
285,350,788.60 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Bank Overdraft |
7,895,127.46 |
13,877,490.52 |
|
Promissory Notes Payable |
54,000,000.00 |
- |
|
Trade Accounts &
Other Payable |
585,816,849.96 |
138,808,595.32 |
|
Accrued Income Tax |
3,364,021.94 |
828,694.10 |
|
|
|
|
|
Total Current Liabilities |
651,075,999.36 |
153,517,779.94 |
|
Long-term Loan |
195,644,384.22 |
50,500,000.00 |
|
Long-term Loan from Financial Institution |
14,830,267.22 |
15,880,267.22 |
|
Hire-purchase Payable |
6,504,405.10 |
- |
|
Total Liabilities |
868,055,055.90 |
219,898,047.16 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 500,000 shares |
50,000,000.00 |
50,000,000.00 |
|
|
|
|
|
Capital Paid |
50,000,000.00 |
50,000,000.00 |
|
Retained Earning - Unappropriated
|
27,200,839.36 |
15,455,741.44 |
|
Total Shareholders' Equity |
77,200,836.36 |
65,455,741.44 |
|
Total Liabilities & Shareholders' Equity |
945,255,895.26 |
285,350,788.60 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales Income |
840,846,416.45 |
194,972,086.34 |
|
Service Income |
26,953,733.42 |
2,499,200.00 |
|
Other Income |
132,490.62 |
2,130,341.16 |
|
Total Revenues |
867,932,640.49 |
199,601,627.50 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
777,023,862.88 |
169,335,748.79 |
|
Cost of Service |
2,326,143.10 |
1,783,266.21 |
|
Selling Expenses |
7,676,097.84 |
4,098,587.68 |
|
Administrative Expenses |
39,093,410.45 |
17,876,697.45 |
|
Other Expenses |
18,451,042.54 |
- |
|
Total Expenses |
844,570,556.81 |
193,094,300.13 |
|
|
|
|
|
Profit / [Loss] before Financial
Cost & Income Tax |
23,362,083.68 |
6,507,327.37 |
|
Financial Cost |
[5,456,584.21] |
[823,397.29] |
|
Income Tax |
[6,160,401.55] |
[1,787,676.65] |
|
|
|
|
|
Net Profit / [Loss] |
11,745,097.92 |
3,896,253.43 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.42 |
1.76 |
|
QUICK RATIO |
TIMES |
1.14 |
0.58 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
42.59 |
13.28 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.92 |
0.69 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
85.39 |
385.90 |
|
INVENTORY TURNOVER |
TIMES |
4.27 |
0.95 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
311.95 |
164.68 |
|
RECEIVABLES TURNOVER |
TIMES |
1.17 |
2.22 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
274.36 |
296.08 |
|
CASH CONVERSION CYCLE |
DAYS |
122.98 |
254.50 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
89.81 |
86.66 |
|
SELLING & ADMINISTRATION |
% |
5.39 |
11.13 |
|
INTEREST |
% |
0.63 |
0.42 |
|
GROSS PROFIT MARGIN |
% |
10.21 |
14.42 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.69 |
3.30 |
|
NET PROFIT MARGIN |
% |
1.35 |
1.97 |
|
RETURN ON EQUITY |
% |
15.21 |
5.95 |
|
RETURN ON ASSET |
% |
1.24 |
1.37 |
|
EARNING PER SHARE |
BAHT |
23.49 |
7.79 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.92 |
0.77 |
|
DEBT TO EQUITY RATIO |
TIMES |
11.24 |
3.36 |
|
TIME INTEREST EARNED |
TIMES |
4.28 |
7.90 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
339.46 |
|
|
OPERATING PROFIT |
% |
259.01 |
|
|
NET PROFIT |
% |
201.45 |
|
|
FIXED ASSETS |
% |
37.01 |
|
|
TOTAL ASSETS |
% |
231.26 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
10.21 |
Satisfactory |
Industrial
Average |
12.76 |
|
Net Profit Margin |
1.35 |
Satisfactory |
Industrial
Average |
1.77 |
|
Return on Assets |
1.24 |
Deteriorated |
Industrial
Average |
3.31 |
|
Return on Equity |
15.21 |
Impressive |
Industrial
Average |
8.52 |
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 10.21%. When
compared with the industry average, the ratio of the company was lower. This
indicated that company was originated from the 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 1.35%.
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 1.24%.
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 15.21%, 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 Uptrend
Return on Equity Uptrend
LIQUIDITY RATIO
|
Current Ratio |
1.42 |
Satisfactory |
Industrial
Average |
1.79 |
|
Quick Ratio |
1.14 |
|
|
|
|
Cash Conversion Cycle |
122.98 |
|
|
|
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 1.42 times in 2011, decrease from 1.76 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 1.14 times in 2011,
increase from 0.58 times, although excluding inventory so the company still have
good short-term financial strength.
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 123 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.92 |
Acceptable |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
11.24 |
Risky |
Industrial
Average |
1.50 |
|
Times Interest Earned |
4.28 |
Impressive |
Industrial
Average |
2.55 |
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 4.29 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 0.92 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 |
42.59 |
Impressive |
Industrial
Average |
7.96 |
|
Total Assets Turnover |
0.92 |
Deteriorated |
Industrial
Average |
1.89 |
|
Inventory Conversion Period |
85.39 |
|
|
|
|
Inventory Turnover |
4.27 |
Impressive |
Industrial
Average |
3.45 |
|
Receivables Conversion Period |
311.95 |
|
|
|
|
Receivables Turnover |
1.17 |
Deteriorated |
Industrial
Average |
5.45 |
|
Payables Conversion Period |
274.36 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.21 |
|
UK Pound |
1 |
Rs.84.00 |
|
Euro |
1 |
Rs.67.75 |
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.