MIRA
INFORM REPORT
|
Report Date : |
01.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
FARRTO
SQUARE CORP., LTD. |
|
|
|
|
Registered Office : |
191 Moo 8, T. Bangkru, A. Phrapradaeng, Samutprakarn 10130 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
05.11.2002 |
|
|
|
|
Com. Reg. No.: |
0105545117058 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer and distributor
of plastic resins and
plastic compounds |
|
|
|
|
No. of Employees : |
50 |
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 : |
Usually Correct |
|
|
|
|
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
FARRTO SQUARE CORP., LTD.
SUMMARY
BUSINESS
ADDRESS : 191
MOO 8, T. BANGKRU,
A. PHRAPRADAENG,
SAMUTPRAKARN 10130,
THAILAND
TELEPHONE : [66] 2840-7891-3,
081 929-6924
FAX :
[66] 2818-8919
E-MAIL
ADDRESS : farrtosquar_m@yahoo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2002
REGISTRATION
NO. : 0105545117058
TAX
ID NO. : 3030726513
CAPITAL REGISTERED : BHT. 23,000,000
CAPITAL PAID-UP : BHT.
23,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MRS. VARAPORN EIAMLAMNAM,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 50
LINES
OF BUSINESS : PLASTIC RESINS
AND PLASTIC COMPOUNDS
MANUFACTURER AND
DISTRIBUTOR
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 November 5,
2002 as a
private limited company under
the registered name
FARRTO SQUARE CORP.,
LTD. by Thai
groups. Its business
objective is to manufacture
and distribute plastic
resins and plastic
compounds for plastic
packaging and plastic
products industries. It
currently employs approximate
50 staff.
The
subject’s registered address
is 191 Moo 8,
T. Bangkru, A.
Phrapradaeng, Samutprakarn 10130,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
Mrs. Varaporn Eiamlamnam
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mrs. Varaporn Eiamlamnam is
the Managing Director.
She is Thai
nationality with the
age of 43
years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing and distributing
plastic resins and plastic
compound, mainly polypropylene
for plastic packaging and
other plastic products industries.
PURCHASE
Most
of raw materials
are purchased from
local supplier, the
rest is imported
from Republic of
China.
SALES
100% of the
products is sold
locally to wholesalers,
manufacturers and end-users.
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
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject currently employs
approximately 50 office
staff and factory
workers.
LOCATION
DETAILS
The
premise is owned for
administrative office and
factory at the heading
address. Premise is
located in provincial,
on the outskirts
of Bangkok.
Branch
office is located
at 313 Moo 5,
T. Nongprong, A. Srimahaphote,
Prachinburi
25140.
COMMENT
Based on economic trends and the overall
industrial improvement. Despite
massive floods in the
last quarter of 2011 the subject’s business was performed
well. While industrial improvement in 2012 had
increased demand of plastic
resin and plastic
compound from various industries,
as well as
domestic consumption of the
products is promising
this year.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 1,000,000
divided into 10,000 shares
of Bht. 100
each with fully
paid.
On
March 13, 2012,
the registered capital
was increased to
Bht. 23,000,000 divided
into 230,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 27, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Varaporn Eiamlamnam Nationality: Thai Address : 21/3
Moo 2, Jomthong
Rd., Jomthong,
Bangkok |
222,000 |
96.52 |
|
Ms. Ratana Kansri Nationality: Thai Address : 48/1
Moo 1, Suksawad Rd., Bangkru,
Phrapradaeng, Samutprakarn |
3,998 |
1.74 |
|
Ms. Araporn Jongthanomkiat Nationality: Thai Address : 53/126
Moo 10, Suksawad
Rd., Bangkru,
Phrapradaeng, Samutprakarn |
3,998 |
1.74 |
|
Mrs. Somsong Chaw-obthom Nationality: Thai Address : 67
Moo 5, T. Bankum,
A. Songpeenong, Suphanburi |
1 |
- |
|
Ms. Nongyao Leakchua Nationality: Thai Address : 45/3
Moo 4, T. Samphan,
A. Srimahaphote, Prachinburi |
1 |
- |
|
Mrs. Thanaporn Chiarakongman Nationality: Thai Address : 53/95
Moo 10, Suksawad
Rd., Bangkru,
Phrapradaeng, Samutprakarn |
1 |
- |
|
Ms. Kwanmuang Mansilp Nationality: Thai Address : 8/1
Moo 4, T. Bansrang, A. Bangpa-in, Ayutthaya |
1 |
- |
Total Shareholders : 7
Share Structure [as
at April 27,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
230,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
230,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Sineerat Yaemboo No.
6432
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash and Cash Equivalents |
13,758,257.89 |
10,483,893.31 |
50,265.10 |
|
Trade Accounts Receivable
|
53,649,253.08 |
53,079,514.94 |
38,387,764.78 |
|
Inventories |
43,301,843.25 |
40,502,826.62 |
33,795,337.12 |
|
Short-term Lending |
12,104,660.00 |
- |
- |
|
Other Current Assets
|
524,642.32 |
1,434,143.70 |
399,593.27 |
|
|
|
|
|
|
Total Current Assets
|
123,338,656.54 |
105,500,378.57 |
72,632,960.27 |
|
|
|
|
|
|
Fixed Assets |
7,143,444.82 |
7,244,456.28 |
2,641,338.57 |
|
Total Assets |
130,482,101.36 |
112,744,834.85 |
75,274,298.84 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
39,167,056.19 |
62,541,551.13 |
31,027,767.83 |
|
Trade Accounts Payable
|
22,750,137.90 |
20,577,714.98 |
19,805,399.52 |
|
Short-term Loan from Person
& Related Company |
36,941,982.62 |
- |
- |
|
Current Portion of
Financial Lease Contract Liabilities
|
794,288.28 |
1,378,215.07 |
842,100.12 |
|
Accrued Income Tax |
434,054.33 |
828,134.40 |
692,227.84 |
|
Accrued Expenses |
6,877,989.92 |
7,095,794.72 |
6,045,073.33 |
|
Other Current Liabilities |
393,169.89 |
421,202.70 |
178,507.13 |
|
|
|
|
|
|
Total Current Liabilities |
107,358,679.13 |
92,842,613.00 |
58,591,075.77 |
|
|
|
|
|
|
Financial Lease Contract
Liabilities, Net of
Current Portion |
474,216.71 |
- |
541,143.07 |
|
Total Liabilities |
107,832,895.85 |
92,842,613.00 |
59,132,218.84 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 10,000 shares |
1,000,000.00 |
1,000,000.00 |
1,000,000.00 |
|
|
|
|
|
|
Capital Paid |
1,000,000.00 |
1,000,000.00 |
1,000,000.00 |
|
Retained Earning Unappropriated |
21,649,205.51 |
18,902,221.85 |
15,142,080.00 |
|
Total Shareholders' Equity |
22,649,205.51 |
19,902,221.85 |
16,142,080.00 |
|
Total Liabilities & Shareholders' Equity |
130,482,101.36 |
112,744,834.85 |
75,274,298.84 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales Income |
191,223,755.40 |
193,181,783.57 |
202,996,810.69 |
|
Gain on Exchange Rate |
- |
4,340,614.62 |
1,076,990.12 |
|
Interest Income |
160,216.29 |
311.33 |
12.51 |
|
Other Income |
32,292.70 |
2,534,663.97 |
45,057.74 |
|
Total Revenues |
191,416,264.39 |
200,057,373.49 |
204,118,871.06 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
165,338,664.92 |
173,667,392.72 |
178,465,777.26 |
|
Selling Expenses |
3,716,533.58 |
5,242,486.39 |
3,957,934.94 |
|
Administrative Expenses |
16,061,447.79 |
15,337,172.93 |
16,105,463.58 |
|
Loss on Exchange Rate |
1,510,926.69 |
- |
- |
|
Total Expenses |
186,627,572.98 |
194,247,052.04 |
198,529,175.78 |
|
|
|
|
|
|
Profit before Financial Cost & Income
Tax |
4,788,691.41 |
5,810,321.45 |
5,589,695.28 |
|
Financial Costs |
[1,130,063.01] |
[857,042.08] |
[711,117.93] |
|
Profit before Income
Tax |
3,658,628.40 |
4,953,279.37 |
4,878,577.35 |
|
Income Tax |
[911,644.74] |
[1,193,137.52] |
[1,169,727.95] |
|
|
|
|
|
|
Net Profit / [Loss] |
2,746,983.66 |
3,760,141.85 |
3,708,849.40 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.15 |
1.14 |
1.24 |
|
QUICK RATIO |
TIMES |
0.74 |
0.68 |
0.66 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
26.77 |
26.67 |
76.85 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.47 |
1.71 |
2.70 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
95.59 |
85.13 |
69.12 |
|
INVENTORY TURNOVER |
TIMES |
3.82 |
4.29 |
5.28 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
102.40 |
100.29 |
69.02 |
|
RECEIVABLES TURNOVER |
TIMES |
3.56 |
3.64 |
5.29 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
50.22 |
43.25 |
40.51 |
|
CASH CONVERSION CYCLE |
DAYS |
147.77 |
142.17 |
97.64 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
86.46 |
89.90 |
87.92 |
|
SELLING & ADMINISTRATION |
% |
10.34 |
10.65 |
9.88 |
|
INTEREST |
% |
0.59 |
0.44 |
0.35 |
|
GROSS PROFIT MARGIN |
% |
13.64 |
13.66 |
12.64 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.50 |
3.01 |
2.75 |
|
NET PROFIT MARGIN |
% |
1.44 |
1.95 |
1.83 |
|
RETURN ON EQUITY |
% |
12.13 |
18.89 |
22.98 |
|
RETURN ON ASSET |
% |
2.11 |
3.34 |
4.93 |
|
EARNING PER SHARE |
BAHT |
274.70 |
376.01 |
370.88 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.83 |
0.82 |
0.79 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.76 |
4.66 |
3.66 |
|
TIME INTEREST EARNED |
TIMES |
4.24 |
6.78 |
7.86 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(1.01) |
(4.84) |
|
|
OPERATING PROFIT |
% |
(17.58) |
3.95 |
|
|
NET PROFIT |
% |
(26.94) |
1.38 |
|
|
FIXED ASSETS |
% |
(1.39) |
174.27 |
|
|
TOTAL ASSETS |
% |
15.73 |
49.78 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -1.01%. Turnover has decreased from THB
193,181,783.57 in 2010 to THB 191,223,755.40 in 2011. While net profit has
decreased from THB 3,760,141.85 in 2010 to THB 2,746,983.66 in 2011. And total
assets has increased from THB 112,744,834.85 in 2010 to THB 130,482,101.36 in
2011.
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
13.64 |
Satisfactory |
Industrial Average |
14.47 |
|
Net Profit Margin |
1.44 |
Acceptable |
Industrial Average |
2.07 |
|
Return on Assets |
2.11 |
Satisfactory |
Industrial Average |
2.75 |
|
Return on Equity |
12.13 |
Impressive |
Industrial Average |
6.20 |
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 13.64%. When compared with
the industry average, the ratio of the company was lower, this indicated that
company may have 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 1.44%.
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 2.11%.
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 12.13%, 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 Downtrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.15 |
Satisfactory |
Industrial Average |
1.26 |
|
Quick Ratio |
0.74 |
|
|
|
|
Cash Conversion Cycle |
147.77 |
|
|
|
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 1.15 times in 2011, increased from 1.14 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 0.74 times in 2011,
increased from 0.68 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 148 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.83 |
Acceptable |
Industrial Average |
0.56 |
|
Debt to Equity Ratio |
4.76 |
Risky |
Industrial Average |
1.26 |
|
Times Interest Earned |
4.24 |
Impressive |
Industrial Average |
2.85 |
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 4.24 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 0.83 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
26.77 |
Impressive |
Industrial Average |
2.61 |
|
Total Assets Turnover |
1.47 |
Impressive |
Industrial Average |
1.28 |
|
Inventory Conversion Period |
95.59 |
|
|
|
|
Inventory Turnover |
3.82 |
Acceptable |
Industrial Average |
6.32 |
|
Receivables Conversion Period |
102.40 |
|
|
|
|
Receivables Turnover |
3.56 |
Acceptable |
Industrial Average |
4.79 |
|
Payables Conversion Period |
50.22 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.56 and 3.64 in
2011 and 2010 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate revenue. A lower ratio may indicate
over extension and collection problems. Conversely, a higher ratio may indicate
an overtly stringent policy. In this case, the company's A/R ratio in 2011
decreased from 2010. This would suggest the company had deteriorated in the
management of its debt collections.
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has increased from 85 days at the
end of 2010 to 96 days at the end of 2011. This represents a negative trend.
And Inventory turnover has decreased from 4.29 times in year 2010 to 3.82 times
in year 2011.
The company's Total Asset Turnover is calculated as 1.47 times and 1.71
times in 2011 and 2010 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
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 Uptrend
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.39 |
|
UK Pound |
1 |
Rs.82.32 |
|
Euro |
1 |
Rs.69.54 |
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.