MIRA INFORM REPORT
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Report Date : |
22.09.2012 |
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IDENTIFICATION DETAILS
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Name : |
LAFA
WORLD COMPANY LIMITED |
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Registered Office : |
12/2 Soi Intamara
3, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
28.10.1992 |
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Com. Reg. No.: |
0105535146721 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and distributor of tools and
related products |
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No. of Employees : |
11 employees |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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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 |
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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
LAFA WORLD COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 12/2
SOI INTAMARA 3,
SUTHISARNVINIJCHAI ROAD,
SAMSENNAI, PHYATHAI,
BANGKOK 10400
TELEPHONE : [66] 2616-7500,
2271-3823, 2616-6538-9
FAX :
[66] 2616-7509,
2271-0674
E-MAIL
ADDRESS : lafa@loxinfo.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1992
REGISTRATION
NO. : 0105535146721 [Former
: [1] 667/2535]
TAX
ID NO. : 3011212080
CAPITAL REGISTERED : BHT. 1,000,000
CAPITAL PAID-UP : BHT.
1,000,000
SHAREHOLDER’S PROPORTION : THAI
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PONGSAK SORSANSANEE, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 11
LINES
OF BUSINESS : TOOLS
AND RELATED 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 October
28, 1992 as a
private limited company under
the name style
“LAFA WORLD COMPANY
LIMITED” by Thai
group, in order
to distribute wide
range of tools
and related products
to domestic market.
It currently employs
11 staff.
The subject’s registered
address was initially
located at 522/63
New York Trade
Center, Phaholyothin Rd.,
Samsennai, Phyathai, Bangkok
10400.
On July 23,
2012, its registered
address was relocated
to 12/2 Soi
Intamara 3, Suthisarnvinijchai Rd.,
Samsennai, Phyathai, Bangkok
10400, and this
is the subject’s
current operation address.
THE BOARD OF
DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Pongsak Sorsansanee |
[x] |
Thai |
57 |
|
Mr. Thienchai Siriphan |
|
Thai |
61 |
|
Mr. Chinawat Hovilailak
|
|
Thai |
62 |
AUTHORIZED PERSON
The mentioned director [x]
can jointly sign
with one of the rest
directors on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Pongsak Sorsansanee is
the Managing Director.
He is Thai
nationality with the
age of 57
years old.
Mr. Chinawat Hovilailak
is the Sales & Marketing Manager.
He is Thai
nationality with the
age of 62
years old.
BUSINESS OPERATIONS
The subject’s activities
are importer and
distributor various kinds
of tools including
hydraulic tools, pneumatic
tools, air tools, percussion
tools, hand tools,
saw, screwdriver, drills
hydraulic pumps, high
pressure pumps, pneumatic
conveyors and rams,
etc.
MAJOR BRANDS
“SAM”, “NIKE”, “MASTER
TOOLS” and etc.
IMPORT [COUNTRIES]
80% of its products
is imported from Australia, Singapore, Taiwan, Germany,
Italy, France and Japan.
SALES [LOCAL]
100% of its
products is sold
locally by wholesale
to dealers and
end-users.
SUBSIDIARIES & AFFILIATED
COMPANY
Lafa Thai Co., Ltd.
Business Type : Distributor of
industrial chemicals
Lafa Tech Co., Ltd.
Business Type : Distributor of
vacuum cleaner and
water sprayer
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 days or
T/T.
BANKING
Siam Commercial Bank
Public Co., Ltd.
[Sapankwai Branch : Phaholyothin Rd.,
Samsennai, Phyathai, Bangkok 10400]
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject employs
11 staff. [office
and sales staff]
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in commercial
area.
Comment
Strong industrial growth during these few years
has resulted to
increase demand of machinery, tool
and equipment from various sectors.
The subject supplies various
tools and equipment
to industrial sector
which seems to
grow and improve
substantially. Generally, the
subject has a
moderate business with
a constant operating
performance.
FINANCIAL INFORMATION
The capital was
registered at Bht.
1,000,000 divided into
10,000 shares of
Bht. 100 each.
On January 7,
1997 the capital
was decreased to
Bht. 250,000 divided
into 2,500 shares
of Bht. 100
each with fully
paid.
On May 14,
2001, the registered
capital was increased
to Bht. 1,000,000
divided into 10,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30,
2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Chinawat Hovilailak
Nationality: Thai Address : 102/59
Moo 9, Bangmod,
Jomthong, Bangkok |
4,800 |
48.00 |
|
Mr. Pongsak Sorsansanee Nationality: Thai Address : 45/145
Soi Pattanakarn 57,
Prawet, Bangkok |
2,598 |
25.98 |
|
Mr. Thienchai Siriphan
Nationality: Thai Address : 212/69
Petchkasem Rd., Watthaphra,
Bangkokyai, Bangkok |
2,598 |
25.98 |
|
Ms. Charassri Sorsansanee
Nationality: Thai Address : 45/145
Soi Pattanakarn 57,
Prawet, Bangkok |
1 |
0.01 |
|
Ms. Patraporn Veerapalin Nationality: Thai Address : 212/69
Petchkasem Rd., Watthaphra,
Bangkokyai, Bangkok |
1 |
0.01 |
|
Mr. Chayawit Siriphan Nationality: Thai Address : 212/69
Petchkasem Rd., Watthaphra,
Bangkokyai, Bangkok |
1 |
0.01 |
|
Ms. Nonticha Sorsansanee Nationality: Thai Address : 45/145
Soi Pattanakarn 57,
Prawet, Bangkok |
1 |
0.01 |
Total Shareholders : 7
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
10,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
10,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Poladej Klinklan No.
2091
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
1,145,240.72 |
1,133,690.73 |
|
Trade Accounts Receivable
|
4,441,615.72 |
3,561,555.13 |
|
Inventories |
7,967,749.89 |
7,796,913.30 |
|
Other Current Assets
|
26,608.17 |
2,497.40 |
|
|
|
|
|
Total Current Assets
|
13,581,214.50 |
12,494,656.56 |
|
|
|
|
|
Fixed Assets |
24,550.21 |
32,634.25 |
|
Total Assets |
13,605,764.71 |
12,527,290.81 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts Payable |
358,070.40 |
901,153.13 |
|
Accrued Expenses |
278,484.00 |
232,767.00 |
|
Other Current Liabilities |
13,089.90 |
43,582.32 |
|
|
|
|
|
Total Current Liabilities |
649,644.30 |
1,177,502.45 |
|
|
|
|
|
Loan from Director
|
5,500,000.00 |
4,200,000.00 |
|
Total Liabilities |
6,149,644.30 |
5,377,502.45 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 10,000 shares |
1,000,000.00 |
1,000,000.00 |
|
|
|
|
|
Capital Paid |
1,000,000.00 |
1,000,000.00 |
|
Retained Earning - Unappropriated |
6,456,120.41 |
6,149,788.36 |
|
Total Shareholders' Equity |
7,456,120.41 |
7,149,788.36 |
|
Total Liabilities & Shareholders' Equity |
13,605,764.71 |
12,527,290.81 |
PROFIT & LOSS
ACCOUNT
|
Sale |
2011 |
2010 |
|
|
|
|
|
Sales |
10,704,946.73 |
10,846,596.74 |
|
Other Income |
1,285.07 |
1,285.07 |
|
Total Sales |
10,706,231.80 |
10,847,881.81 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
7,353,114.91 |
7,433,321.18 |
|
Selling Expenses |
908,101.85 |
766,855.96 |
|
Administrative Expenses |
1,964,910.98 |
2,087,965.10 |
|
Total Expenses |
10,226,127.74 |
10,288,142.24 |
|
|
|
|
|
Profit / Loss] before Financial Costs & Income Tax |
480,104.06 |
559,739.57 |
|
Financial Costs |
[146,184.00] |
[87,985.00] |
|
|
|
|
|
Profit / [Loss] before Income Tax |
333,920.06 |
471,754.57 |
|
Income Tax |
[27,588.01] |
[48,263.19] |
|
Net Profit / [Loss] |
306,332.05 |
423,491.38 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
20.91 |
10.61 |
|
QUICK RATIO |
TIMES |
8.60 |
3.99 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
436.04 |
332.37 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.79 |
0.87 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
395.51 |
382.85 |
|
INVENTORY TURNOVER |
TIMES |
0.92 |
0.95 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
151.44 |
119.85 |
|
RECEIVABLES TURNOVER |
TIMES |
2.41 |
3.05 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
17.77 |
44.25 |
|
CASH CONVERSION CYCLE |
DAYS |
529.18 |
458.45 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
68.69 |
68.53 |
|
SELLING & ADMINISTRATION |
% |
26.84 |
26.32 |
|
INTEREST |
% |
1.37 |
0.81 |
|
GROSS PROFIT MARGIN |
% |
31.32 |
31.48 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.48 |
5.16 |
|
NET PROFIT MARGIN |
% |
2.86 |
3.90 |
|
RETURN ON EQUITY |
% |
4.11 |
5.92 |
|
RETURN ON ASSET |
% |
2.25 |
3.38 |
|
EARNING PER SHARE |
BAHT |
30.63 |
42.35 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.45 |
0.43 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.82 |
0.75 |
|
TIME INTEREST EARNED |
TIMES |
3.28 |
6.36 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(1.31) |
|
|
OPERATING PROFIT |
% |
(14.23) |
|
|
NET PROFIT |
% |
(27.67) |
|
|
FIXED ASSETS |
% |
(24.77) |
|
|
TOTAL ASSETS |
% |
8.61 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
31.32 |
Impressive |
Industrial
Average |
19.71 |
|
Net Profit Margin |
2.86 |
Impressive |
Industrial Average |
2.12 |
|
Return on Assets |
2.25 |
Acceptable |
Industrial
Average |
3.30 |
|
Return on Equity |
4.11 |
Acceptable |
Industrial
Average |
7.27 |
Gross Profit Margin used to assess a firm's financial health by revealing
the proportion of money left over from sales after accounting for the cost of
goods sold. Gross profit margin serves as the source for paying additional
expenses and future savings. Gross Profit Margin is 31.32%. 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. Net Profit Margin ratio is 2.86%,
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 2.25%.
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 4.11%.
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 |
20.91 |
Impressive |
Industrial
Average |
1.73 |
|
Quick Ratio |
8.60 |
|
|
|
|
Cash Conversion Cycle |
529.18 |
|
|
|
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 20.91 times in 2011, increase from 10.61 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 8.6 times in 2011,
increase from 3.99 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 530 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.45 |
Impressive |
Industrial Average |
0.54 |
|
Debt to Equity Ratio |
0.82 |
Impressive |
Industrial Average |
1.22 |
|
Times Interest Earned |
3.28 |
Satisfactory |
Industrial Average |
4.00 |
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 3.29 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 0.45 less than 0.5, most of the company's
assets are financed through equity.
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 |
436.04 |
Impressive |
Industrial
Average |
6.76 |
|
Total Assets Turnover |
0.79 |
Acceptable |
Industrial
Average |
1.53 |
|
Inventory Conversion Period |
395.51 |
|
|
|
|
Inventory Turnover |
0.92 |
Deteriorated |
Industrial
Average |
3.48 |
|
Receivables Conversion Period |
151.44 |
|
|
|
|
Receivables Turnover |
2.41 |
Acceptable |
Industrial
Average |
4.47 |
|
Payables Conversion Period |
17.77 |
|
|
|
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.54.34 |
|
UK Pound |
1 |
Rs.87.91 |
|
Euro |
1 |
Rs.70.57 |
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.