MIRA INFORM REPORT
|
Report Date : |
07.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
KURU TANNERY
CO., LTD. |
|
|
|
|
Registered Office : |
730
Moo 1, Sukhumvit
Road, K.M. 30,
T. Taiban, A. Muang, Samutprakarn 10280 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
19.11.1993 |
|
|
|
|
Com. Reg. No.: |
0115536007261 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor
and Exporter of Tannery |
|
|
|
|
No. of Employees : |
250 |
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 : |
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
KURU
TANNERY CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 730
MOO 1, SUKHUMVIT
ROAD, K.M. 30,
T.
TAIBAN, A. MUANG, SAMUTPRAKARN
10280
TELEPHONE : [66] 2387-0075-6
FAX :
[66] 2387-0334
E-MAIL
ADDRESS : info@kurutannery.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1993
REGISTRATION
NO. : 0115536007261
TAX
ID NO. : 3271050972
CAPITAL REGISTERED : BHT. 20,000,000
CAPITAL PAID-UP : BHT.
20,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. PREECHA KURUVERUKORN,
THAI
PRESIDENT
NO.
OF STAFF : 250
LINES
OF BUSINESS : TANNERY
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 November 19,
1993 as a
private limited company under the registered
name KURU TANNERY CO.,
LTD., by Thai groups, the Kuruverukorn family,
with the business
objective to be engaged
in tannery. Its products
are for upholstery,
furniture and automotive
industry both domestic
and international markets.
It currently employs
approximate 250 staff.
The
subject’s registered address
is 730 Moo
1, Sukhumvit Road,
K.M. 30, T. Taiban,
A. Muang, Samutprakarn 10280,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sakorn Kuruverukorn |
|
Thai |
35 |
|
Mr. Preecha Kuruverukorn |
|
Thai |
65 |
|
Mrs. Pranee Kuruverukorn |
|
Thai |
63 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Preecha Kuruverukorn is
the President.
He is Thai
nationality with the
age of 65
years old.
Mrs. Pranee Kuruverukorn is
the Vice President.
She is Thai
nationality with the
age of 63
years old.
Mr. Sakorn Kuruverukorn is
the Managing Director.
He is Thai
nationality with the
age of 35
years old.
BUSINESS OPERATIONS
The subject
is a tannery,
to produce, distribute
and export various
kinds of leathers
and other related
products. Range of
products are as
follows:
·
Leather for
upholstery
·
Car seat
cover for automotive
industry
·
Dog chew
with various types,
included pressed &
knotted bone, munchy,
international cuisine, Halloween,
bakery, wet bone,
fancy, sport and
parts
·
Furniture: sofa
set, bed and
recliner
·
Pet accessories:
dog bed
·
Leather goods:
nail bag and
premium goods
PURCHASE
Raw
materials such as
raw hide, tanning
chemical and accessories
are purchased from
both local suppliers
and overseas, mainly
in Republic of
China and Taiwan.
SALES
Most of the
products are exported
to U.S.A., United Kingdom, Switzerland,
Canada, Japan, Australia,
Republic of China
and South Africa,
the remaining is
sold locally.
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 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.
Exports are against
T/T.
BANKING
The
banker’s name was
not disclosed.
EMPLOYMENT
The
subject currently employs
approximately 250 office
staff and factory
workers.
LOCATION DETAILS
The
premise is owned for
administrative office, factory
and warehouse at
the heading address.
Premise is located
in provincial.
COMMENT
Subject
reported increasing sales
in 2011 compared to
the previous year,
while market demand
remained strong. However,
demand of leather
has gradually improved
since the first
quarter of 2011 from
automotive, furniture and
upholstery industries, as
well as business
outlook in 2012
was brisk.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 20,000,000
divided into 200,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE
[as at April
30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Sakorn Kuruverukorn Nationality: Thai Address : 731
Moo 1, Sukhumvit
Rd., K.M. 30, T.
Taiban, A. Muang, Samutprakarn |
58,000 |
29.00 |
|
Mr. Preecha Kuruverukorn Nationality: Thai Address : 731
Moo 1, Sukhumvit
Rd., K.M. 30, T.
Taiban, A. Muang, Samutprakarn |
40,500 |
20.25 |
|
Ms. Ratchanee Kuruverukorn Nationality: Thai Address : 730
Moo 1, Sukhumvit
Rd., K.M. 30, T.
Taiban, A. Muang, Samutprakarn |
40,000 |
20.00 |
|
Mr. Apichart Jiwapaibulsak Nationality: Thai Address : 1991/2
Onnuch Rd., Kwaeng
Suanluang, Kwet Suanluang,
Bangkok |
21,500 |
10.75 |
|
Mrs. Pranee Kuruverukorn Nationality: Thai Address : 730
Moo 1, Sukhumvit
Rd., K.M. 30, T. Taiban, A. Muang,
Samutprakarn |
20,000 |
10.00 |
|
Ms. Maliwan Kuruverukorn Nationality: Thai Address : 730
Moo 1, Sukhumvit
Rd., K.M. 30, T.
Taiban, A. Muang, Samutprakarn |
20,000 |
10.00 |
Total Shareholders : 6
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
200,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
6 |
200,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Sumeth Charoenrungsap
No. 6696
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 [Adjusted] |
|
|
|
|
|
Cash and Cash Equivalents |
5,300,564.82 |
455,878.17 |
|
Trade Accounts Receivable |
64,219,207.01 |
49,335,949.57 |
|
Inventories |
198,676,397.03 |
219,229,147.07 |
|
Goods in Transit |
3,093,000.14 |
3,432,544.60 |
|
Revenue Department Receivable |
750,096.94 |
469,768.98 |
|
Deferred Tax Coupon
Income |
1,176,330.42 |
888,281.58 |
|
Other Current Assets
|
2,356,329.95 |
810,206.20 |
|
|
|
|
|
Total Current Assets
|
275,571,926.31 |
274,621,776.17 |
|
|
|
|
|
Fixed Assets |
121,737,229.98 |
119,586,353.67 |
|
Other Assets |
- |
10,083.33 |
|
Total Assets |
397,309,156.29 |
394,218,213.17 |
LIABILITIES & SHAREHOLDERS’
EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 [Adjusted] |
|
|
|
|
|
Bank Overdraft |
46,694,128.18 |
48,606,247.92 |
|
Short-term Loan from Bank |
214,300,000.00 |
219,230,000.00 |
|
Trade Accounts & Other
Payable |
58,943,539.57 |
56,900,471.59 |
|
Current Portion of Long-term
Loans |
15,268,385.35 |
17,917,680.00 |
|
Accrued Income Tax |
268,341.89 |
230,663.05 |
|
Other Current Liabilities |
327,122.71 |
266,610.26 |
|
|
|
|
|
Total Current Liabilities |
335,801,517.70 |
343,151,672.82 |
|
Long-term Loan |
46,615,971.35 |
37,260,561.54 |
|
Reserve for Employee’s Benefit |
5,506,901.16 |
- |
|
Total Liabilities |
387,924,390.21 |
380,412,234.36 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 200,000 shares |
20,000,000.00 |
20,000,000.00 |
|
|
|
|
|
Capital Paid |
20,000,000.00 |
20,000,000.00 |
|
Retained Earning |
|
|
|
Appropriated for
Statutory Reserve |
2,000,000.00 |
2,000,000.00 |
|
Unappropriated |
[12,615,233.92] |
[8,194,021.19] |
|
Total Shareholders' Equity |
9,384,766.08 |
13,805,978.81 |
|
Total Liabilities &
Shareholders' Equity |
397,309,156.29 |
394,218,213.17 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 [Adjusted] |
|
|
|
|
|
Sales |
381,677,467.23 |
301,077,125.60 |
|
Other Income |
|
|
|
Compensation Tax |
2,046,145.48 |
1,600,687.30 |
|
Others |
808,173.25 |
1,376,074.73 |
|
Total Revenues |
384,531,785.96 |
304,053,887.66 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
322,039,761.04 |
252,373,676.81 |
|
Selling Expenses |
1,056,030.03 |
980,990.78 |
|
Administrative Expenses |
31,812,190.96 |
27,969,142.05 |
|
Loss on Exchange Rate |
4,784,565.39 |
1,024,158.41 |
|
Total Expenses |
359,692,547.42 |
282,347,968.05 |
|
|
|
|
|
Profit before Financial Costs &
Income Tax |
24,839,238.54 |
21,705,919.61 |
|
Financial Costs |
[23,698,631.76] |
[20,433,441.48] |
|
|
|
|
|
Profit before Income Tax |
1,140,606.78 |
1,272,478.13 |
|
Income Tax |
[485,841.89] |
[433,163.05] |
|
Net Profit/[Loss] |
654,764.89 |
839,315.08 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.82 |
0.80 |
|
QUICK RATIO |
TIMES |
0.20 |
0.14 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.14 |
2.52 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.96 |
0.76 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
228.69 |
322.03 |
|
INVENTORY TURNOVER |
TIMES |
1.60 |
1.13 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
61.41 |
59.81 |
|
RECEIVABLES TURNOVER |
TIMES |
5.94 |
6.10 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
66.81 |
82.29 |
|
CASH CONVERSION CYCLE |
DAYS |
223.29 |
299.55 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
84.37 |
83.82 |
|
SELLING & ADMINISTRATION |
% |
8.61 |
9.62 |
|
INTEREST |
% |
6.21 |
6.79 |
|
GROSS PROFIT MARGIN |
% |
16.37 |
17.17 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
6.51 |
7.21 |
|
NET PROFIT MARGIN |
% |
0.17 |
0.28 |
|
RETURN ON EQUITY |
% |
6.98 |
6.08 |
|
RETURN ON ASSET |
% |
0.16 |
0.21 |
|
EARNING PER SHARE |
BAHT |
3.27 |
4.20 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.98 |
0.96 |
|
DEBT TO EQUITY RATIO |
TIMES |
41.34 |
27.55 |
|
TIME INTEREST EARNED |
TIMES |
1.05 |
1.06 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
26.77 |
|
|
OPERATING PROFIT |
% |
14.44 |
|
|
NET PROFIT |
% |
(21.99) |
|
|
FIXED ASSETS |
% |
1.80 |
|
|
TOTAL ASSETS |
% |
0.78 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
16.37 |
Impressive |
Industrial
Average |
11.62 |
|
Net Profit Margin |
0.17 |
Deteriorated |
Industrial Average |
1.18 |
|
Return on Assets |
0.16 |
Deteriorated |
Industrial
Average |
1.30 |
|
Return on Equity |
6.98 |
Impressive |
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 16.37%. 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 0.17%.
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 0.16%.
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 6.98%, 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 Uptrend
LIQUIDITY RATIO
|
Current Ratio |
0.82 |
Risky |
Industrial
Average |
1.20 |
|
Quick Ratio |
0.20 |
|
|
|
|
Cash Conversion Cycle |
223.29 |
|
|
|
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 0.82 times in 2011, increased from 0.8 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 0.2 times in 2011,
increased from 0.14 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 224 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.98 |
Acceptable |
Industrial
Average |
0.66 |
|
Debt to Equity Ratio |
41.34 |
Risky |
Industrial
Average |
2.13 |
|
Times Interest Earned |
1.05 |
Acceptable |
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 1.05 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 0.98 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 |
3.14 |
Impressive |
Industrial
Average |
3.02 |
|
Total Assets Turnover |
0.96 |
Satisfactory |
Industrial
Average |
1.04 |
|
Inventory Conversion Period |
228.69 |
|
|
|
|
Inventory Turnover |
1.60 |
Satisfactory |
Industrial
Average |
1.94 |
|
Receivables Conversion Period |
61.41 |
|
|
|
|
Receivables Turnover |
5.94 |
Impressive |
Industrial
Average |
4.32 |
|
Payables Conversion Period |
66.81 |
|
|
|
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.54.84 |
|
UK Pound |
1 |
Rs.88.16 |
|
Euro |
1 |
Rs.71.54 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.