MIRA
INFORM REPORT
|
Report Date : |
06.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
A. R. TRADING REGISTERED ORDINARY PARTNERSHIP |
|
|
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|
Registered Office : |
376/5 Phahurat Road, Wangburapapirom, Phranakorn, Bangkok 10200 |
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Country : |
Thailand |
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|
|
|
Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
10.03.1961 |
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|
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Com. Reg. No.: |
0102504000919 [Former :
93/2504] |
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Legal Form : |
Registered Ordinary Partnership |
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|
|
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Line of Business : |
Importer and Distributor of Foods and
Consumer Products |
|
|
|
|
No. of Employees : |
5 |
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 : |
Small Company |
|
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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
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 achieved steady growth due largely to industrial and agriculture
exports - mostly electronics, agricultural commodities, automobiles and parts,
and processed foods. Thailand is trying to maintain growth by encouraging
domestic consumption and public investment to offset weak exports in 2012.
Unemployment, at less than 1% of the labor force, stands as one of the lowest
levels in the world, which puts upward pressure on wages in some industries.
Thailand also attracts nearly 2.5 million migrant workers from neighboring
countries. The Thai government is implementing a nation-wide 300 baht ($10) per
day minimum wage policy and deploying new tax reforms designed to lower rates
on middle-income earners. The Thai economy has weathered internal and external
economic shocks in recent years. The global economic severely cut Thailand's
exports, with most sectors experiencing double-digit drops. In 2009, the
economy contracted 2.3%. However, in 2010, Thailand's economy expanded 7.8%,
its fastest pace since 1995, as exports rebounded. In late 2011 growth was
interrupted by historic flooding in the industrial areas in Bangkok and its
five surrounding provinces, crippling the manufacturing sector. Industry
recovered from the second quarter of 2012 onward with GDP growth at 5.5% in
2012. The government has approved flood mitigation projects worth $11.7 billion,
which were started in 2012, to prevent similar economic damage, and an
additional $75 billion for infrastructure over the next seven years with a plan
to start in 2013.
|
Source
: CIA |
company name
A. R. TRADING REGISTERED ORDINARY PARTNERSHIP
SUMMARY
BUSINESS ADDRESS : 376/5 PHAHURAT ROAD,
WANGBURAPAPIROM,
PHRANAKORN, BANGKOK
10200, THAILAND
TELEPHONE : [66] 2221-5595
FAX : [66] 2226-2374
E-MAIL ADDRESS : karensachdev@hotmail.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1961
REGISTRATION NO. : 0102504000919 [Former : 93/2504]
TAX ID NO. : 3103008447
CAPITAL REGISTERED : BHT.
3,000,000
CAPITAL PAID-UP : BHT.
3,000,000
PARTNER’S PROPORTION : INDIAN :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : REGISTERED ORDINARY
PARTNERSHIP
EXECUTIVE : MR.
HARKRISHANLAL SACHDEV, INDIAN
MANAGING PARTNER
NO. OF STAFF : 5
LINES OF BUSINESS : FOODS
AND CONSUMER 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
3, 1961 as a
registered ordinary partnership
under the originally
name “A. R. Trading [A.R. Film]
Registered Ordinary Partnership” by
Indian groups. On
February 22, 1972,
subject’s name was changed
to A. R. TRADING
REGISTERED ORDINARY PARTNERSHIP.
Its business objective
is to import
and distribute various
kinds of foods and
consumer products to
local market. It
currently employs 5
staff.
The subject’s registered
address is 376/5
Phahurat Rd., Wangburapapirom, Phranakorn,
Bangkok 10200, and
this is the
subject’s current operation
address.
AUTHORIZED PERSON
Mr. Harkrishanlal Sachdev
Mr. Rachender Kumar Sachdev
Mr. Varin Sachdev
One of the
above partners can
sign on behalf
of the subject
with seal affixed.
MANAGEMENT
Mr. Harkrishanlal Sachdev is the Managing
Partner.
He is Indian
nationality with the
age of 74
years old.
BUSINESS OPERATIONS
The subject is engaged in importing
and distributing various
kinds of foods
and consumer products,
such as coconut
oil, seasoning products,
beans, butter, margarine,
cheese, cocoa, coffee,
chocolate, beverage, rice,
pickle products, spice,
Indian tea, ghee,
whole wheat flour,
gramflour, canned foods,
natural hair color,
incense.
MAJOR BRANDS
“BIC”, “HEM”, “HALDIRUM”,
“NANDI”, “AMUL”, “TATA”,
“LEILA”, “SPOONS”, “A.R.T.”,
“COLOR MATE”, “BLACK
ROSE”, “RED LABEL
TEA”, “TAJ MAHAL” and etc.
PURCHASE
90% of the
products is imported
from India, the
remaining 10% is purchased
from local suppliers.
SALES
100% of the
products is sold
locally to wholesalers
and retailers.
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 credit 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 employs
5 staff.
LOCATION DETAILS
The premise is
rented for administrative office
and showroom at
the heading address.
Premise is located
in commercial/residential area.
Branch office is
located at 35
Soi Kawa, Somdejchaophraya Rd.,
Somdejchaophraya, Klongsan, Bangkok
10600.
COMMENT
The subject’s business has
steadily grown from strong consumption in
domestic market. Since
it has been
in the business
for over five decades,
the subject has
supplied various foods
products which mostly are from
India in order
to served demand
from local consumers.
Current consumption slowdown,
its business is
expected to grow at
slow pace this year.
FINANCIAL INFORMATION
The capital was
registered at Bht.
3,000,000 which was
carried by 3
persons as
followed:
Name Age Amount
Mr. Harkrishanlal Sachdev [74] Bht. 1,000,000 [Unlimited
Partner]
Mr. Rachender Kumar Sachdev [47] Bht.
1,000,000 [Unlimited Partner]
Mr. Varin Sachdev [43] Bht.
1,000,000 [Unlimited Partner]
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mrs. Wasana Tanmongkol No.
1888
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
81,364.99 |
72,719.90 |
88,576.76 |
|
Inventories |
12,959,924.00 |
14,483,639.00 |
9,692,746.00 |
|
Other Current Assets
|
736,802.82 |
511,205.24 |
1,501,663.46 |
|
|
|
|
|
|
Total Current Assets
|
13,778,091.81 |
15,067,564.14 |
11,282,986.22 |
|
Lending to Director |
9,700,000.00 |
8,000,000.00 |
9,500,000.00 |
|
Fixed Assets |
3,674.68 |
5,152.68 |
6,837.91 |
|
Other Non - current Assets |
29,300.00 |
29,300.00 |
29,300.00 |
|
Total Assets |
23,511,066.49 |
23,102,016.82 |
20,819,124.13 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable
|
1,094,931.11 |
1,797,104.93 |
605,320.07 |
|
Other Current Liabilities |
136,283.88 |
130,581.65 |
239,649.51 |
|
|
|
|
|
|
Total Current Liabilities |
1,231,214.99 |
1,927,686.58 |
844,969.58 |
|
Total Liabilities |
1,231,214.99 |
1,927,686.58 |
844,969.58 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Capital Paid |
3,000,000.00 |
3,000,000.00 |
3,000,000.00 |
|
Retained Earning
Unappropriated |
19,279,851.50 |
18,174,330.24 |
16,974,154.55 |
|
Total Shareholders' Equity |
22,279,851.50 |
21,174,330.24 |
19,974,154.55 |
|
Total Liabilities &
Shareholders' Equity |
23,511,066.49 |
23,102,016.82 |
20,819,124.13 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
14,359,838.75 |
18,794,767.36 |
20,328,034.04 |
|
Other Income |
239,723.70 |
166,138.47 |
284,628.72 |
|
Total Revenues |
14,599,562.45 |
18,960,905.83 |
20,612,662.76 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
12,325,831.37 |
16,233,322.05 |
16,762,426.43 |
|
Selling Expenses |
- |
13,372.25 |
606,263.00 |
|
Administrative Expenses |
954,472.83 |
1,202,644.12 |
1,139,874.10 |
|
Total Expenses |
13,280,304.20 |
17,449,338.42 |
18,508,563.53 |
|
|
|
|
|
|
Profit before Financial Cost & Income
Tax |
1,319,258.25 |
1,511,567.41 |
2,104,099.23 |
|
Financial Costs |
[8,550.04] |
[8,650.00] |
- |
|
Profit before Income
Tax |
1,310,708.21 |
1,502,917.41 |
2,104,099.23 |
|
Income Tax |
[205,186.95] |
[302,741.72] |
[406,431.57] |
|
Net Profit / [Loss] |
1,105,521.26 |
1,200,175.69 |
1,697,667.66 |
|
Retained Earning, Beginning of
Year |
18,174,330.24 |
16,974,154.55 |
15,276,486.89 |
|
|
|
|
|
|
Retained Earning, End of Year |
19,279,851.50 |
18,174,330.24 |
16,974,154.55 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
11.19 |
7.82 |
13.35 |
|
QUICK RATIO |
TIMES |
0.07 |
0.04 |
0.10 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3,907.78 |
3,647.57 |
2,972.84 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.61 |
0.81 |
0.98 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
383.78 |
325.66 |
211.06 |
|
INVENTORY TURNOVER |
TIMES |
0.95 |
1.12 |
1.73 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
RECEIVABLES TURNOVER |
TIMES |
- |
- |
- |
|
PAYABLES CONVERSION PERIOD |
DAYS |
32.42 |
40.41 |
13.18 |
|
CASH CONVERSION CYCLE |
DAYS |
351.35 |
285.25 |
197.88 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
85.84 |
86.37 |
82.46 |
|
SELLING & ADMINISTRATION |
% |
6.65 |
6.47 |
8.59 |
|
INTEREST |
% |
0.06 |
0.05 |
- |
|
GROSS PROFIT MARGIN |
% |
15.83 |
14.51 |
18.94 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
9.19 |
8.04 |
10.35 |
|
NET PROFIT MARGIN |
% |
7.70 |
6.39 |
8.35 |
|
RETURN ON EQUITY |
% |
4.96 |
5.67 |
8.50 |
|
RETURN ON ASSET |
% |
4.70 |
5.20 |
8.15 |
|
EARNING PER SHARE |
BAHT |
36.85 |
40.01 |
56.59 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.05 |
0.08 |
0.04 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.06 |
0.09 |
0.04 |
|
TIME INTEREST EARNED |
TIMES |
154.30 |
174.75 |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(23.60) |
(7.54) |
|
|
OPERATING PROFIT |
% |
(12.72) |
(28.16) |
|
|
NET PROFIT |
% |
(7.89) |
(29.30) |
|
|
FIXED ASSETS |
% |
(28.68) |
(24.65) |
|
|
TOTAL ASSETS |
% |
1.77 |
10.97 |
|
ANNUAL GROWTH : RISKY
An annual sales growth is -23.6%.
Turnover has decreased from THB 18,794,767.36 in 2011 to THB 14,359,838.75 in
2012. While net profit has decreased from THB 1,200,175.69 in 2011 to THB
1,105,521.26 in 2012. And total assets has increased from THB 23,102,016.82 in
2011 to THB 23,511,066.49 in 2012.
PROFITABILITY : SATISFACTORY
PROFITABILITY RATIO
|
Gross Profit Margin |
15.83 |
Acceptable |
Industrial Average |
24.08 |
|
Net Profit Margin |
7.70 |
Impressive |
Industrial Average |
2.06 |
|
Return on Assets |
4.70 |
Satisfactory |
Industrial Average |
5.28 |
|
Return on Equity |
4.96 |
Deteriorated |
Industrial Average |
11.96 |
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 15.83%. 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. Net Profit Margin ratio is 7.7%,
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 4.7%.
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 4.96%.
Trend of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
11.19 |
Impressive |
Industrial Average |
1.63 |
|
Quick Ratio |
0.07 |
|
|
|
|
Cash Conversion Cycle |
351.35 |
|
|
|
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 11.19 times in 2012, increase from 7.82 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 0.07 times in 2012,
increase from 0.04 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 352 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.05 |
Impressive |
Industrial Average |
0.58 |
|
Debt to Equity Ratio |
0.06 |
Impressive |
Industrial Average |
1.33 |
|
Times Interest Earned |
154.30 |
Impressive |
Industrial Average |
0.85 |
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 154.3 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 0.05 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 Downtrend
ACTIVITY : ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
3,907.78 |
Impressive |
Industrial Average |
1.46 |
|
Total Assets Turnover |
0.61 |
Deteriorated |
Industrial Average |
2.53 |
|
Inventory Conversion Period |
383.78 |
|
|
|
|
Inventory Turnover |
0.95 |
Deteriorated |
Industrial Average |
7.40 |
|
Receivables Conversion Period |
- |
|
|
|
|
Receivables Turnover |
- |
|
Industrial Average |
4.53 |
|
Payables Conversion Period |
32.42 |
|
|
|
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 326 days at the
end of 2011 to 384 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 1.12 times in year 2011 to 0.95 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.61 times and 0.81
times in 2012 and 2011 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 Downtrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.82 |
|
|
1 |
Rs.92.97 |
|
Euro |
1 |
Rs.80.73 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.