MIRA INFORM REPORT
|
Report Date : |
11.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
THAI
DEVELOPMENT TANNERY CO.,
LTD. |
|
|
|
|
Registered Office : |
176 Moo 1, Sukhumvit Road, K.M. 30, T. Taiban, A. Muang, Samutprakarn 10280 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
30.09.2011 |
|
|
|
|
Date of Incorporation : |
17.08.1976 |
|
|
|
|
Com. Reg. No.: |
0115544007348 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer,
distributor & exporter of tannery |
|
|
|
|
No. of Employees : |
140 employees |
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 |
|
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
THAI DEVELOPMENT TANNERY CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 176
MOO 1, SUKHUMVIT
ROAD, K.M. 30,
T. TAIBAN,
A. MUANG, SAMUTPRAKARN 10280
TELEPHONE : [66] 2703-8181-3
FAX : [66]
2703-9217
E-MAIL
ADDRESS : tdt1975@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2001
REGISTRATION
NO. : 0115544007348 [Former : SOR. POR. 10926]
TAX
ID NO. : 3030380586
CAPITAL REGISTERED : BHT. 30,000,000
CAPITAL PAID-UP : BHT.
30,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL
YEAR CLOSING DATE : SEPTEMBER
30
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SANGUAN JIRAYUWATTANA, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 140
LINES
OF BUSINESS : TANNERY
MANUFACTURER, DISTRIBUTOR
& EXPORTER
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
initially established on
August 17, 1976
as a limited
partnership by Mr.
Sanguan Jirayuwattana, who
was the Founder and
Managing Partner, in
order to operate
tannery business.
On October 1,
2001 the subject’s
status was converted
to private limited
company under the
name THAI DEVELOPMENT
TANNERY CO., LTD.
with the purpose
of manufacturing and
servicing finished leathers
to both domestic
and overseas markets.
It currently employs
approximate 140 staff.
The subject’s registered
address is 176 Moo 1,
Sukhumvit Rd., K.M. 30,
T. Taiban, A. Muang, Samutprakarn
10280, and this
is the company’s
current operation address.
THE BOARD
OF DIRECTOR
Mr. Sanguan Jirayuwattana
AUTHORIZED
PERSON
Mr. Sanguan Jirayuwattana signs
on behalf of the
subject
with company’s affixed.
MANAGEMENT
Mr. Sanguan Jirayuwattana is
the Managing Director.
He is Thai
nationality with the
age of 73
years old.
Mr. Sunthorn Jirayuwattana is
the Assistant Manager.
He is Thai
nationality.
Mr. Narin Jirayuwattana is
the Export &
Overseas Manager.
He is Thai
nationality.
BUSINESS
OPERATIONS
The subject operates
as a tannery,
which is engaged
in manufacturing and
servicing of finished
leathers, the main
raw material for
footwear, furniture and
automobile industries.
PURCHASE
Raw hide and
tanning chemical are
purchased from both
local and overseas
suppliers in India,
Republic of China,
Australia and European
countries.
SALES
70% of the
products is sold
and serviced locally
to manufacturers and
wholesalers, and the
remaining 30% is
exported to Europe,
Hong Kong, Taiwan,
Vietnam, Indonesia and
Republic of China.
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
according to IRICO’S
DATABASE 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
30-60-90 days.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BUSINESS TRANSACTION
The products are
sold to customers
by cash and
credit, with the
maximum credit given
at 30-60 days,
while exports are
against L/C at
sight or T/T.
The subject is
not found to
have payment problem
on both accounts
receivable and accounts
payable.
BANKING
Krung Thai Bank
Public Co., Ltd.
[Bangpoo Branch
: Sukhumvit Rd.,
Taiban, Muang, Samutprakarn
10280]
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject employs
approximately 140 office
staff and tannery
workers.
LOCATION DETAILS
The premise is
owned for administrative office,
tannery and warehouse
at the heading
address. Premise is
located in industrial
area.
COMMENT
Many of the world famous fashion houses use Thailand as a manufacturing
base for their leather products. Shoes and handbags made in Thailand are now
using leather which were manufactured in
the country as well. The extraordinary quality of Thai leather products is
known all over the world and continually improving. The
subject has potential to compete with the best
in the domestic from
its vibrant of work quality and
modern motifs.
Its business performance is
bright from current
economic condition. The
subject still maintain its
moderate business.
FINANCIAL
INFORMATION
The capital was
initially registered at
Bht. 1,000,000 divided
into 10,000 shares
of Bht. 100
each.
On September 30, 2003 the
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 January
30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Thai Development Tannery
Limited Partnership Nationality: Thai Address : 176
Moo 1, T. Taiban,
A. Muang, Samutprakarn 10280 |
72,500 |
24.17 |
|
Mr. Sunthorn Jirayuwattana Nationality: Thai Address : 176
Moo 1, T. Taiban,
A. Muang,
Samutprakarn 10280 |
43,400 |
14.47 |
|
Mr. Sanguan Jirayuwattana Nationality: Thai Address : 176
Moo 1, T. Taiban,
A. Muang,
Samutprakarn 10280 |
38,300 |
12.77 |
|
Mr. Yuttaveep Jirayuwattana Nationality: Thai Address : 176
Moo 1, T. Taiban,
A. Muang,
Samutprakarn 10280 |
36,650 |
12.22 |
|
Mr. Nara Jirayuwattana Nationality: Thai Address : 592
Moo 1, T. Bangkaew, A. Bangplee,
Samutprakarn 10540 |
28,600 |
9.53 |
|
Mr. Naris Jirayuwattana Nationality: Thai Address : 276
Bangna, Bangkok 10260 |
28,225 |
9.41 |
|
Mr. Narin Jirayuwattana Nationality: Thai Address : 98/137
Bangna, Bangkok 10260 |
28,225 |
9.41 |
|
Mr. Thanabat Jirayuwattana Nationality: Thai Address : 176
Moo 1, T. Taiban,
A. Muang, Samutprakarn 10280 |
24,100 |
8.02 |
Total Shareholders : 8
Share Structure [as
at January 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
8 |
300,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
8 |
300,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Kasem Suthepakorn No.
0695
BALANCE
SHEET [BAHT]
The
latest financial figures
published for September
30, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash
Equivalents |
2,782.93 |
12,463.37 |
|
Trade Accounts Receivable |
22,299,069.13 |
27,517,562.22 |
|
Inventories |
42,879,896.13 |
61,876,904.38 |
|
Other Current Assets
|
210,335.75 |
54,974.42 |
|
|
|
|
|
Total Current Assets
|
65,392,083.94 |
89,461,904.39 |
|
Other Long-term Investment |
234,000.00 |
234,000.00 |
|
Fixed Assets |
32,536,945.92 |
36,226,145.34 |
|
Other Non-current Assets |
3,387,325.87 |
3,529,304.30 |
|
Total Assets |
101,550,355.73 |
129,451,354.03 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Bank Overdraft from Financial Institutions |
18,645,911.13 |
42,222,818.13 |
|
Trade Accounts Payable |
47,880,574.10 |
52,998,301.33 |
|
Other Current Liabilities |
2,142,977.30 |
2,564,778.76 |
|
|
|
|
|
Total Current Liabilities |
68,669,462.53 |
97,785,898.22 |
|
Total Liabilities |
68,669,462.53 |
97,785,898.22 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 300,000 shares |
30,000,000.00 |
30,000,000.00 |
|
|
|
|
|
Capital Paid |
30,000,000.00 |
30,000,000.00 |
|
Retained Earning - Unappropriated |
2,880,893.20 |
1,665,455.81 |
|
Total Shareholders' Equity |
32,880,893.20 |
12,665,455.81 |
|
Total Liabilities & Shareholders' Equity |
101,550,355.73 |
129,451,354.03 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
164,456,779.98 |
139,536,900.49 |
|
Other Income |
1,442,826.46 |
1,396,449.48 |
|
Total Revenues |
165,899,606.44 |
140,933,349.97 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
153,276,563.82 |
127,203,142.20 |
|
Selling Expenses |
1,346,989.97 |
1,146,817.05 |
|
Administrative Expenses |
8,956,863.60 |
9,202,744.70 |
|
Total Expenses |
163,580,417.39 |
137,552,703.95 |
|
|
|
|
|
Profit / Loss] before Financial Costs & Income Tax |
2,319,189.05 |
3,380,646.02 |
|
Financial Costs |
[535,282.64] |
[782,470.44] |
|
|
|
|
|
Profit / [Loss] before Income Tax |
1,783,906.41 |
2,598,175.58 |
|
Income Tax |
[545,625.15] |
[782,404.24] |
|
Net Profit / [Loss] |
1,238,281.26 |
1,815,771.34 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.95 |
0.91 |
|
QUICK RATIO |
TIMES |
0.32 |
0.28 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.05 |
3.85 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.62 |
1.08 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
102.11 |
177.55 |
|
INVENTORY TURNOVER |
TIMES |
3.57 |
2.06 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
49.49 |
71.98 |
|
RECEIVABLES TURNOVER |
TIMES |
7.38 |
5.07 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
114.02 |
152.07 |
|
CASH CONVERSION CYCLE |
DAYS |
37.58 |
97.46 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
93.20 |
91.16 |
|
SELLING & ADMINISTRATION |
% |
6.27 |
7.42 |
|
INTEREST |
% |
0.33 |
0.56 |
|
GROSS PROFIT MARGIN |
% |
7.68 |
9.84 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.41 |
2.42 |
|
NET PROFIT MARGIN |
% |
0.75 |
1.30 |
|
RETURN ON EQUITY |
% |
3.77 |
14.34 |
|
RETURN ON ASSET |
% |
1.22 |
1.40 |
|
EARNING PER SHARE |
BAHT |
4.13 |
6.05 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.68 |
0.76 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.09 |
7.72 |
|
TIME INTEREST EARNED |
TIMES |
4.33 |
4.32 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
17.86 |
|
|
OPERATING PROFIT |
% |
(31.40) |
|
|
NET PROFIT |
% |
(31.80) |
|
|
FIXED ASSETS |
% |
(10.18) |
|
|
TOTAL ASSETS |
% |
(21.55) |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
7.68 |
Acceptable |
Industrial
Average |
11.62 |
|
Net Profit Margin |
0.75 |
Acceptable |
Industrial
Average |
1.18 |
|
Return on Assets |
1.22 |
Satisfactory |
Industrial
Average |
1.30 |
|
Return on Equity |
3.77 |
Satisfactory |
Industrial
Average |
4.15 |
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 7.68%. When compared with
the industry average, the ratio of the company was lower, 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 0.75%.
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 1.22%.
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 3.77%.
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 |
0.95 |
Risky |
Industrial
Average |
1.20 |
|
Quick Ratio |
0.32 |
|
|
|
|
Cash Conversion Cycle |
37.58 |
|
|
|
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 0.95 times in 2011, increased from 0.91 times, then the company may
have problems meeting its short-term obligations. 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 0.32 times in 2011,
increased from 0.28 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 38 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.68 |
Acceptable |
Industrial
Average |
0.66 |
|
Debt to Equity Ratio |
2.09 |
Acceptable |
Industrial
Average |
2.13 |
|
Times Interest Earned |
4.33 |
Impressive |
Industrial
Average |
1.55 |
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 4.34 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 0.68 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 |
5.05 |
Impressive |
Industrial
Average |
3.02 |
|
Total Assets Turnover |
1.62 |
Impressive |
Industrial
Average |
1.04 |
|
Inventory Conversion Period |
102.11 |
|
|
|
|
Inventory Turnover |
3.57 |
Impressive |
Industrial
Average |
1.94 |
|
Receivables Conversion Period |
49.49 |
|
|
|
|
Receivables Turnover |
7.38 |
Impressive |
Industrial
Average |
4.32 |
|
Payables Conversion Period |
114.02 |
|
|
|
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.53.04 |
|
UK Pound |
1 |
Rs.84.83 |
|
Euro |
1 |
Rs.68.21 |
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.