MIRA
INFORM REPORT
|
Report Date : |
24.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
INDUSTRIAL SOLUTION SUPPLY CO., LTD. |
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Registered Office : |
125/28 Moo 8, T. Bangkrasor, A. Muang,Nonthaburi 11000 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
25.02.2010 |
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Com. Reg. No.: |
0105553029065 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Distributor of Industrial Equipment and Supplies |
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No. of Employees : |
8 |
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 |
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Payment Behaviour : |
No Complaints |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2011) |
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
INDUSTRIAL
SOLUTION SUPPLY CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 125/28 MOO
8, T. BANGKRASOR, A. MUANG,
NONTHABURI 11000,
THAILAND
TELEPHONE : [66] 2950-8884,
089 455-0033
FAX : [66] 2531-4446,
2950-8885
E-MAIL
ADDRESS : sales@industrialsolution.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2010
REGISTRATION
NO. : 0105553029065
TAX
ID NO. : 3033824223
CAPITAL REGISTERED : BHT. 1,000,000
CAPITAL PAID-UP : BHT. 250,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SURIYONG PIPITWANICHAKARN, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 8
LINES
OF BUSINESS : INDUSTRIAL EQUIPMENT
AND SUPPLIES
DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on February 25,
2010 as a
private limited company under
the registered name INDUSRIAL SOLUTION
SUPPLY CO., LTD.
by Thai groups, with
the business objective
is to distribute
various kinds of
industrial equipment and supplies
for industrial factory.
It currently employs
8 staff.
The
subject’s registered address
is 125/28 Moo 8, T.
Bangkrasor, A. Muang, Nonthaburi
11000, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Suriyong Pipitwanichakarn |
[x] |
Thai |
32 |
|
Ms. Kornvalai Chankate |
|
Thai |
31 |
|
Mr. Jirath Buakaew |
|
Thai |
36 |
AUTHORIZED PERSON
The mentioned director
[x] can jointly
sign with anyone
of the rest
directors on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Suriyong Pipitwanichakarn is
the Managing Director.
He is Thai
nationality with the
age of 32
years old.
BUSINESS OPERATIONS
The subject
is engaged in
distributing various kinds
of industrial equipment and
supplies, such as pumps,
valves, piping system
and equipment, expansion
joint, industrial tools
and etc., as
well as providing
after sales services
of repair and
maintenance.
PURCHASE
100% of the
products is purchased
from local suppliers.
SALES
100% of the
products is sold
locally by wholesale
to 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 30-60-90 days.
Local bills are
paid by cash
or on the
credits term of 30-60 days.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject currently employs
8 staff.
LOCATION DETAILS
The
premise is owned for
administrative office at
the heading address.
Premise is located
in provincial, on
the outskirts of
Bangkok.
Branch
office is located
at 11/13 Soi
Udomsuk, Watkhodhin-Khaophai Rd.,
T. Nernphra, A. Muang, Rayong
21000. Tel.: [66]
38 688-213.
COMMENT
The
subject is a
supplier of industrial
factory equipment for
local market. The
subject’s operating performance
in 2011 was
satisfactory with an increase
in both sales
and net profit
comparing to the
previous year’s level. There
is a regular
demand of the
products and service
from local industrial
factory which contributes
to the subject’s
sales income and
operating performance. Its
business is growing
considerably.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 1,000,000
divided into 10,000 shares
of Bht. 100
each with 25%
paid-up or Bht.
250,000.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
at Bht. 250,000
of capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Suriyong Pipitwanichakarn Nationality: Thai Address : 186, 188
Khao-Ngoo Rd., T. Nahmuang, A. Muang,
Ratchburi |
5,900 |
59.00 |
|
Mr. Jirath Buakaew Nationality: Thai Address : 238
Soi Sapankhwa, Bangsue, Bangkok |
4,000 |
40.00 |
|
Ms. Kornvalai Chankate Nationality: Thai Address : 532/5
Moo 2, Klongthanon, Saimai,
Bangkok |
100 |
1.00 |
Total Shareholders : 3
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
10,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
10,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Wuthisak Ongvimolkarn No. 9299
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
81,855.14 |
229,239.13 |
|
Trade Accounts & Other Receivable |
1,189,840.00 |
- |
|
Inventories |
478,040.79 |
- |
|
Other Current Assets
|
1,017,426.60 |
1,446.43 |
|
|
|
|
|
Total Current Assets
|
2,767,162.53 |
230,685.56 |
|
|
|
|
|
Fixed Assets |
230,365.73 |
9,000.95 |
|
Total Assets |
2,997,528.26 |
239,686.51 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts & Other Payable
|
271,954.69 |
6,000.00 |
|
Short-term Loan from Director |
1,206,029.91 |
5,091.69 |
|
Accrued Income Tax |
231,631.95 |
- |
|
Other Current Liabilities |
7,904.00 |
- |
|
|
|
|
|
Total Current Liabilities |
1,717,520.55 |
11,091.69 |
|
Total Liabilities |
1,717,520.55 |
11,091.69 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
value Authorized &
issued share capital 10,000 shares |
1,000,000.00 |
1,000,000.00 |
|
|
|
|
|
Capital Paid |
250,000.00 |
250,000.00 |
|
Retained Earning - Unappropriated |
1,030,007.71 |
[21,405.18] |
|
Total Shareholders' Equity |
1,280,007.71 |
228,594.82 |
|
Total Liabilities & Shareholders' Equity |
2,997,528.26 |
239,686.51 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
3,367,750.00 |
92,150.00 |
|
Services Income |
2,188,720.00 |
- |
|
Other Income |
50,551.82 |
328.15 |
|
Total Revenues |
5,607,021.82 |
92,478.15 |
|
Expenses |
|
|
|
|
|
|
|
Change in Finished Goods and
Work in Process |
[478,040.79] |
- |
|
Purchase of Goods |
3,171,275.14 |
56,161.56 |
|
Employees Benefits Expenses |
211,800.00 |
- |
|
Depreciation and Amortization |
18,381.89 |
8,430.83 |
|
Services Expenses |
561,420.00 |
- |
|
Other Expenses |
772,557.37 |
49,290.94 |
|
Total Expenses |
4,257,393.61 |
113,883.33 |
|
|
|
|
|
Profit / [Loss] before Income Tax |
1,349,628.21 |
[21,405.18] |
|
Income Tax |
[298,215.32] |
- |
|
Net Profit / [Loss] |
1,051,412.89 |
[21,405.18] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.61 |
20.80 |
|
QUICK RATIO |
TIMES |
0.74 |
20.67 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
24.12 |
10.24 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.85 |
0.38 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
55.02 |
- |
|
INVENTORY TURNOVER |
TIMES |
6.63 |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
78.16 |
- |
|
RECEIVABLES TURNOVER |
TIMES |
4.67 |
- |
|
PAYABLES CONVERSION PERIOD |
DAYS |
31.30 |
38.99 |
|
CASH CONVERSION CYCLE |
DAYS |
101.88 |
(38.99) |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
57.07 |
60.95 |
|
SELLING & ADMINISTRATION |
% |
4.14 |
9.15 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
43.84 |
39.41 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
24.29 |
(23.23) |
|
NET PROFIT MARGIN |
% |
18.92 |
(23.23) |
|
RETURN ON EQUITY |
% |
82.14 |
(9.36) |
|
RETURN ON ASSET |
% |
35.08 |
(8.93) |
|
EARNING PER SHARE |
BAHT |
420.57 |
(8.56) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.57 |
0.05 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.34 |
0.05 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
5,929.81 |
- |
|
OPERATING PROFIT |
% |
(6,405.15) |
- |
|
NET PROFIT |
% |
5,011.96 |
- |
|
FIXED ASSETS |
% |
2,459.35 |
- |
|
TOTAL ASSETS |
% |
1,150.60 |
- |
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
43.84 |
Impressive |
Industrial
Average |
19.71 |
|
Net Profit Margin |
18.92 |
Impressive |
Industrial
Average |
2.12 |
|
Return on Assets |
35.08 |
Impressive |
Industrial
Average |
3.30 |
|
Return on Equity |
82.14 |
Impressive |
Industrial
Average |
7.27 |
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. Gross Profit Margin is 43.84%. When compared with the industry
average, the ratio of the company was higher, 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 18.92%,
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. Return on Assets ratio is
35.08%, 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.
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 82.14%, 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 Downtrend
Return on Equity Downtrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.61 |
Satisfactory |
Industrial
Average |
1.73 |
|
Quick Ratio |
0.74 |
|
|
|
|
Cash Conversion Cycle |
101.88 |
|
|
|
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 1.61 times in 2011, decrease from 20.8 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,
decrease from 20.67 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 102 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.57 |
Acceptable |
Industrial
Average |
0.54 |
|
Debt to Equity Ratio |
1.34 |
Risky |
Industrial
Average |
1.22 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.57 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
24.12 |
Impressive |
Industrial
Average |
6.76 |
|
Total Assets Turnover |
1.85 |
Impressive |
Industrial
Average |
1.53 |
|
Inventory Conversion Period |
55.02 |
|
|
|
|
Inventory Turnover |
6.63 |
Impressive |
Industrial
Average |
3.48 |
|
Receivables Conversion Period |
78.16 |
|
|
|
|
Receivables Turnover |
4.67 |
Impressive |
Industrial
Average |
4.47 |
|
Payables Conversion Period |
31.30 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.67 and 0.00 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
increased from 2010. This would suggest the company had good performance 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 0 days at the end
of 2010 to 55 days at the end of 2011. This represents a negative trend. And
Inventory turnover has increased from 0 times in year 2010 to 6.63 times in
year 2011.
The company's Total Asset Turnover is calculated as 1.85 times and 0.38
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 Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.77 |
|
|
1 |
Rs.85.13 |
|
Euro |
1 |
Rs.71.57 |
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.