MIRA INFORM REPORT
|
Report Date : |
05.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
LIANGCHI INDUSTRY
[THAILAND] CO., LTD. |
|
|
|
|
|
|
Registered Office : |
1029
Num Krai Industrial
Zone, Luang-Paeng Road,
T. Tabyao, A. Ladkrabang, Bangkok
10520 |
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|
Country : |
Thailand |
|
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|
Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
30.04.1987 |
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|
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Com. Reg. No.: |
0105530021017 |
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|
Legal Form : |
Private
Limited Company |
|
|
|
|
|
|
Line of Business : |
Manufacturer, Distributor and Exporter of Cooling Towers and Related Products |
|
|
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|
No. of Employees : |
250 |
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 – 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 |
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
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
TAX
ID NO. : 3101442410
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 : 250
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 approximate
250 staff.
It
was 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 |
|
|
|
|
|
|
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 |
|
Mrs. Suthanee Chayangphat |
|
Thai |
45 |
|
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.
Mrs. 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, cross flow,
counter flow, heavy
duty counter flow
type, heavy duty
cross flow type
and etc., for
various industries, such
as electronics, foods,
hotels, power plant,
airport, department store,
cold storage, park
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, and
Japan.
MAJOR SUPPLIERS
Shanghai
Liang Chi Cooling
Equipment Co., Ltd.
: Republic of
China
Liang
Chi Industry Co.,
Ltd. :
Taiwan
SALES
70% of the
products are sold
locally by wholesale
to manufacturer mainly
in electronic, food,
hotel, hospital, supermarket
and other industries.
EXPORT
30% of the products are
exported to Middle East
countries, Indonesia, Malaysia,
Philippines, Hong Kong,
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 approximately
250 staff.
LOCATION DETAILS
The
premise is owned for
administrative office, factory and warehouse at
the heading address. Premise
is located in
industrial area.
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. Its business
has continued growing since
the beginning of
this year. Strong
industrial sector is the
key factor for
its success business.
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
April 30, 2012]
|
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. Phenchit Prueksachartkul 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 April 30,
2012]
|
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, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash in hand
& at Bank
|
14,714,794.16 |
15,288,762.99 |
|
Short-term Investment |
191,525.05 |
187,631.93 |
|
Trade Accounts &
Other Receivable |
97,292,229.19 |
90,695,573.52 |
|
Advanced Payment |
7,017,888.21 |
7,205,684.87 |
|
Inventories |
133,133,380.59 |
80,977,133.28 |
|
Other Current Assets
|
5,992,807.63 |
4,938,377.57 |
|
Total Current Assets
|
258,342,624.83 |
199,293,164.16 |
|
Other Long-term Investment |
49,916,651.00 |
50,075,845.20 |
|
Long-term Loan |
88,000,000.00 |
88,000,000.00 |
|
Fixed Assets |
234,697,676.71 |
235,652,039.53 |
|
Other Non-current Assets |
27,160,618.58 |
8,320,478.53 |
|
Total Assets |
658,117,571.12 |
581,341,527.42 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
100,000,000.00 |
42,000,000.00 |
|
Trade Accounts & Other
Payable |
269,912,598.06 |
251,960,129.73 |
|
Current Portion of Long-term Liabilities |
3,668,544.78 |
3,600,000.00 |
|
Short-term Loan |
2,546,552.00 |
2,423,704.00 |
|
Accrued Income Tax |
- |
7,222,490.23 |
|
Accrued Interest |
77,604,478.69 |
61,836,241.59 |
|
Other Current Liabilities |
46,410,586.88 |
42,305,493.87 |
|
Total Current Liabilities |
500,142,760.41 |
411,348,059.42 |
|
Long-term Loan from Person & Related Company |
- |
4,809,117.14 |
|
Obligation for Employee
Benefits |
10,172,666.43 |
- |
|
Other Liabilities |
818,622.70 |
685,888.99 |
|
Total Liabilities |
511,134,049.54 |
416,843,065.55 |
|
|
|
|
|
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 |
281,104.00 |
440,298.20 |
|
Retained Earning Appropriated for
Statutory Reserve |
10,000,000.00 |
10,000,000.00 |
|
Unappropriated |
36,702,417.58 |
54,058,163.67 |
|
Total Shareholders' Equity |
146,702,417.58 |
164,498,461.87 |
|
Total Liabilities &
Shareholders' Equity |
658,117,571.12 |
581,341,527.42 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales Income |
422,008,494.34 |
310,443,217.01 |
|
Services Income |
28,930,347.25 |
28,975,647.88 |
|
Other Income |
7,820,160.06 |
39,872,660.24 |
|
Total Revenues |
458,759,001.65 |
379,291,525.13 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
292,805,291.71 |
224,709,647.65 |
|
Cost of Services |
20,019,124.14 |
15,786,871.79 |
|
Selling Expenses |
57,017,344.30 |
41,674,611.21 |
|
Administrative Expenses |
63,118,359.86 |
46,747,958.13 |
|
Total Expenses |
432,960,120.01 |
328,919,088.78 |
|
Profit / [Loss] before Financial
Cost & Income Tax |
25,798,881.64 |
50,372,436.35 |
|
Financial Cost |
[21,591,716.92] |
[23,508,104.48] |
|
Profit / [Loss] before Income Tax |
4,207,164.72 |
26,864,331.87 |
|
Income Tax |
[2,111,169.38] |
[9,996,358.49] |
|
Net Profit / [Loss] |
2,095,995.34 |
16,867,973.38 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.52 |
0.48 |
|
QUICK RATIO |
TIMES |
0.24 |
0.28 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.92 |
1.44 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.69 |
0.58 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
155.34 |
122.90 |
|
INVENTORY TURNOVER |
TIMES |
2.35 |
2.97 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
78.75 |
97.53 |
|
RECEIVABLES TURNOVER |
TIMES |
4.63 |
3.74 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
314.93 |
382.40 |
|
CASH CONVERSION CYCLE |
DAYS |
(80.84) |
(161.97) |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
69.37 |
70.86 |
|
SELLING & ADMINISTRATION |
% |
26.64 |
26.05 |
|
INTEREST |
% |
4.79 |
6.93 |
|
GROSS PROFIT MARGIN |
% |
32.36 |
40.89 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.72 |
14.84 |
|
NET PROFIT MARGIN |
% |
0.46 |
4.97 |
|
RETURN ON EQUITY |
% |
1.43 |
10.25 |
|
RETURN ON ASSET |
% |
0.32 |
2.90 |
|
EARNING PER SHARE |
BAHT |
20.96 |
168.68 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.78 |
0.72 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.48 |
2.53 |
|
TIME INTEREST EARNED |
TIMES |
1.19 |
2.14 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
32.86 |
|
|
OPERATING PROFIT |
% |
(48.78) |
|
|
NET PROFIT |
% |
(87.57) |
|
|
FIXED ASSETS |
% |
(0.40) |
|
|
TOTAL ASSETS |
% |
13.21 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
32.36 |
Impressive |
Industrial
Average |
10.76 |
|
Net Profit Margin |
0.46 |
Deteriorated |
Industrial
Average |
2.77 |
|
Return on Assets |
0.32 |
Deteriorated |
Industrial
Average |
4.36 |
|
Return on Equity |
1.43 |
Deteriorated |
Industrial
Average |
10.12 |
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 32.36%. 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 0.46%.
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 0.32%.
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 1.43%.
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 |
0.52 |
Risky |
Industrial
Average |
1.55 |
|
Quick Ratio |
0.24 |
|
|
|
|
Cash Conversion Cycle |
(80.84) |
|
|
|
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 0.52 times in 2011, increased from 0.48 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 0.24 times in 2011,
decreased 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 -81 days.
Trend of the average
competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.78 |
Acceptable |
Industrial
Average |
0.43 |
|
Debt to Equity Ratio |
3.48 |
Risky |
Industrial
Average |
1.07 |
|
Times Interest Earned |
1.19 |
Deteriorated |
Industrial
Average |
7.29 |
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 1.2 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 0.78 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 |
1.92 |
Deteriorated |
Industrial
Average |
4.20 |
|
Total Assets Turnover |
0.69 |
Deteriorated |
Industrial
Average |
1.54 |
|
Inventory Conversion Period |
155.34 |
|
|
|
|
Inventory Turnover |
2.35 |
Deteriorated |
Industrial
Average |
6.07 |
|
Receivables Conversion Period |
78.75 |
|
|
|
|
Receivables Turnover |
4.63 |
Satisfactory |
Industrial
Average |
5.48 |
|
Payables Conversion Period |
314.93 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.54 |
|
|
1 |
Rs.88.23 |
|
Euro |
1 |
Rs.70.02 |
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.