MIRA
INFORM REPORT
|
Report Date : |
03.07.2013 |
IDENTIFICATION DETAILS
|
Name : |
FIRST PRIORITY PRODUCTS CO., LTD. |
|
|
|
|
Registered Office : |
27/149 Moo 5,
Rama 2 Road, T.
Phantainorasing, A. Muang,
Samutsakorn 74000, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
03.03.2000 |
|
|
|
|
Com. Reg. No.: |
0105543022459 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer and Distributor
of Writing and Printing
Supplies |
|
|
|
|
No. of Employees : |
3 |
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 : |
Moderate |
|
Payment Behaviour : |
Slow but 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 – 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 and address
FIRST PRIORITY PRODUCTS CO., LTD.
SUMMARY
BUSINESS ADDRESS : 27/149
MOO 5, RAMA
2 ROAD,
T.
PHANTAINORASING, A. MUANG,
SAMUTSAKORN 74000, THAILAND
TELEPHONE : [66] 34
458-275, 081 615-9730
FAX : [66] 34
458-275
E-MAIL ADDRESS : surachateghoger@hotmail.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2000
REGISTRATION NO. : 0105543022459
TAX ID NO. : 3030064387
CAPITAL REGISTERED : BHT.
5,000,000
CAPITAL PAID-UP : BHT.
2,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING
DATE : DECEMBER
31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MRS.
ANCHALEE GHOGER, THAI MANAGING DIRECTOR
NO. OF STAFF : 3
LINES OF BUSINESS : WRITING
AND PRINTING SUPPLIES
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 March
3, 2000 as
a private limited
company under the
name style FIRST
PRIORITY PRODUCTS CO.,
LTD. by Thai-Indian
group, Ghoger family,
in order to import and
distribute wide range of
writing and printing supplies
for local market.
It currently employs
3 staff.
The subject’s registered
address was initially
located at 825/166
Moo 1, Prachauthit
58 Rd., Thungkru,
Bangkok 10140.
On June 1,
2007, it was relocated
to 27/149 Moo 5,
Rama 2 Rd., T. Phantainorasing,
A. Muang, Samutsakorn
74000, and this
is the company’s
current operation address.
THE BOARD
OF DIRECTOR
Mrs. Anchalee Ghoger
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mrs. Anchalee Ghoger is
the Managing Director.
She is Thai
nationality with the
age of 51
years old.
Mr. Surachate Ghoger
is the Deputy
Managing Director, Sales &
Marketing Manager.
He is Thai
nationality with the
age of 54
years old.
BUSINESS OPERATIONS
The subject is engaged in importing
and distributing writing and
printing supplies, such
as inks, ball-point
pen, refills, blades
and etc. The
products are provided
to writing, printing
and stationery businesses.
PURCHASE
Most of the products are imported from Germany, India, Republic of China, Indonesia
and Switzerland, and the
remaining is purchased
from local manufacturers
and suppliers.
MAJOR SUPPLIER
European Ink GmbH :
Germany
SALES [LOCAL]
100% of the
products is sold
locally by wholesale
to stationery manufacturers.
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 credit terms
of 30-60 days.
Local bills are
paid by cash
or on the
credit terms of
30-60 days.
Imports are by
T/T.
BUSINESS TRANSACTION
The products are
sold by cash
and credit, with
the maximum credit
given at 30-60
days. The subject
is found to
have delay and
default payment by some
customers.
BANKING
Thanachart Bank Public
Co., Ltd.
[Prapradaeng Branch
: 123 Moo
4, Suksawad Rd.,
Phrapadaeng, Samutprakarn]
EMPLOYMENT
The subject employs
3 staff.
LOCATION DETAILS
The premise is rented
for administrative office
at the heading
address. Premise is located
in provincial.
COMMENT
The subject was formed in 2000 as
an importer and
distributor of writing and
printing supplies. Its
business has grown
relatively slow. Its
business remained loss
in spite of revenue
increased, this was
due to its products were
less competitive than
others in the
market. Growth is
expected to be
at slow pace
FINANCIAL INFORMATION
The capital was
registered at Bht. 1,000,000 divided into 10,000 shares of
Bht. 100 each with
fully paid.
The capital was
increas4ed later as
follows:
Bht. 2,000,000 on
November 14, 2012
Bht. 5,000,000 on
April 29, 2013
The latest registered
capital was increased
to Bht. 5,000,000
divided into 50,000
shares of Bht.
100 each, with
the current capital
paid-up at Bht.
2,000,000.
THE SHAREHOLDERS
LISTED WERE
[as at
April 30, 2013]
at Bht. 2,000,000
of capitalization
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Anchalee Ghoger Nationality: Thai Address : 27/149
Moo 5, T. Phanthainorasing, A.
Muang, Samutsakorn |
10,500 |
52.50 |
|
Mr. Surachate Ghoger Nationality: Thai Address : 27/149
Moo 5, T.
Phanthainorasing, A.
Muang, Samutsakorn |
9,000 |
45.00 |
|
Mrs. Yindergor Nationality: Thai Address : 577/134
Charansanitwong 13 Rd.,
Watthaphra, Bangkokyai Bangkok
10700 |
100 |
0.50 |
|
Mrs. Ratanaporn Smitthinant Nationality: Thai Address : 3
Moo 4, T. Chonabot, A.
Chonabot,
Khonkaen |
100 |
0.50 |
|
Ms. Sudaporn Arjharn Nationality: Thai Address : 262/1
Sukhumvit 21 Rd.,
Bangchak,
Phrakanong, Bangkok 10260 |
100 |
0.50 |
|
Mr. Pritaveepal Patak Nationality: Thai Address : 106/64
Moo 19, Salathammasop,
Taweewatana, Bangkok |
100 |
0.50 |
|
Mr. Zagbirasingh Ghoger Nationality: Thai Address : 577/134
Charansanitwong 13 Rd.,
Watthaphra, Bangkokyai Bangkok
10700 |
100 |
0.50 |
Total Shareholders : 7
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
20,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
20,000 |
100.00 |
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mrs. Punnitta Boonkrong
No. 3852
BALANCE
SHEET [BAHT]
The latest financial
figures published for
December 31, 2012,
2011 and 2010
were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalent |
27,523.09 |
17,581.64 |
15,543.55 |
|
Trade Accounts Receivable |
163,199.00 |
27,827.34 |
22,280.95 |
|
Inventories |
1,954,388.00 |
1,289,221.00 |
1,105,033.00 |
|
Other Current Assets |
203,054.91 |
235,698.79 |
305,413.85 |
|
|
|
|
|
|
Total Current Assets
|
2,348,165.00 |
1,570,328.77 |
1,448,271.35 |
|
|
|
|
|
|
Fixed Assets |
534,537.46 |
796,513.16 |
1,050,481.66 |
|
Total Assets |
2,882,702.46 |
2,366,841.93 |
2,498,753.01 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable |
2,578,452.03 |
35,645.74 |
128,988.45 |
|
Current Portion of Financial Lease Contract Liabilities |
244,860.00 |
244,860.00 |
244,860.00 |
|
Short-term Loan from Related Person |
2,174,624.48 |
3,909,624.48 |
2,585,000.00 |
|
Other Current Liabilities |
- |
- |
37,307.91 |
|
|
|
|
|
|
Total Current Liabilities |
4,997,936.51 |
4,190,130.22 |
2,996,156.36 |
|
|
|
|
|
|
Hire-purchase Payable, net of Current Portion |
267,854.40 |
512,714.40 |
757,574.40 |
|
Total Liabilities |
5,265,790.91 |
4,702,844.62 |
3,753,730.76 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 20,000 shares in 2012 & 2011; and 10,000
shares in 2010 |
2,000,000.00 |
2,000,000.00 |
1,000,000.00 |
|
|
|
|
|
|
Capital Paid |
2,000,000.00 |
2,000,000.00 |
1,000,000.00 |
|
Retained Earning-
Unappropriated |
[4,383,088.45] |
[3,336,002.69] |
[2,254,977.75] |
|
Total Shareholders' Equity |
[2,383,088.45] |
[2,336,002.69] |
[1,254,977.75] |
|
Total Liabilities &
Shareholders' Equity |
2,882,702.46 |
2,366,841.93 |
2,498,753.01 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
5,879,762.19 |
5,375,862.26 |
2,189,663.90 |
|
Other Income |
402,218.95 |
197,128.24 |
261,787.92 |
|
Total Revenues |
6,281,981.14 |
5,572,990.50 |
2,451,451.82 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
5,266,111.29 |
4,705,220.41 |
1,768,036.54 |
|
Administrative Expenses |
2,009,074.24 |
1,884,638.35 |
2,110,257.10 |
|
Other Expenses |
12,518.15 |
31,312.80 |
18,702.04 |
|
Total Expenses |
7,287,703.68 |
6,621,171.56 |
3,896,995.68 |
|
|
|
|
|
|
Profit/[Loss] before Financial Cost & Income Tax |
[1,000,722.54] |
[1,048,181.06] |
[1,445,543.86] |
|
Financial Cost |
[32,843.88] |
[27,433.28] |
[27,433.28] |
|
Income Tax |
[8,519.34] |
- |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
[1,047,085.76] |
[1,075,614.34] |
[1,472,977.14] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.47 |
0.37 |
0.48 |
|
QUICK RATIO |
TIMES |
0.04 |
0.01 |
0.01 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
11.00 |
6.75 |
2.08 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.04 |
2.27 |
0.88 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
135.46 |
100.01 |
228.13 |
|
INVENTORY TURNOVER |
TIMES |
2.69 |
3.65 |
1.60 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
10.13 |
1.89 |
3.71 |
|
RECEIVABLES TURNOVER |
TIMES |
36.03 |
193.19 |
98.28 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
178.72 |
2.77 |
26.63 |
|
CASH CONVERSION CYCLE |
DAYS |
(33.12) |
99.13 |
205.21 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
89.56 |
87.52 |
80.74 |
|
SELLING & ADMINISTRATION |
% |
34.17 |
35.06 |
96.37 |
|
INTEREST |
% |
0.56 |
0.51 |
1.25 |
|
GROSS PROFIT MARGIN |
% |
17.28 |
16.14 |
31.21 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(17.10) |
(19.50) |
(66.02) |
|
NET PROFIT MARGIN |
% |
(17.81) |
(20.01) |
(67.27) |
|
RETURN ON EQUITY |
% |
- |
- |
- |
|
RETURN ON ASSET |
% |
(36.32) |
(45.45) |
(58.95) |
|
EARNING PER SHARE |
BAHT |
(52.35) |
(53.78) |
(147.30) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
1.83 |
1.99 |
1.50 |
|
DEBT TO EQUITY RATIO |
TIMES |
(2.21) |
(2.01) |
(2.99) |
|
TIME INTEREST EARNED |
TIMES |
(30.62) |
(38.21) |
(52.69) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
9.37 |
145.51 |
|
|
OPERATING PROFIT |
% |
(4.05) |
(27.49) |
|
|
NET PROFIT |
% |
2.65 |
26.98 |
|
|
FIXED ASSETS |
% |
(32.89) |
(24.18) |
|
|
TOTAL ASSETS |
% |
21.80 |
(5.28) |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 9.37%. Turnover has increased from THB
5,375,862.26 in 2011 to THB 5,879,762.19 in 2012. While net profit has
increased from THB -1,075,614.34 in 2011 to THB -1,047,085.76 in 2012. And
total assets has increased from THB 2,366,841.93 in 2011 to THB 2,882,702.46 in
2012.
PROFITABILITY :
RISKY
PROFITABILITY RATIO
|
Gross Profit Margin |
17.28 |
Satisfactory |
Industrial Average |
20.68 |
|
Net Profit Margin |
(17.81) |
Deteriorated |
Industrial Average |
2.65 |
|
Return on Assets |
(36.32) |
Deteriorated |
Industrial Average |
3.90 |
|
Return on Equity |
- |
|
Industrial Average |
8.97 |
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 17.28%. 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 -17.81%.
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 -36.32%.
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 |
0.47 |
Risky |
Industrial Average |
1.66 |
|
Quick Ratio |
0.04 |
|
|
|
|
Cash Conversion Cycle |
(33.12) |
|
|
|
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 0.47 times in 2012, increased from 0.37 times, then the company may not be
efficiently using its current assets. 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 0.04 times in 2012,
increased from 0.01 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 -34 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
1.83 |
Risky |
Industrial Average |
0.54 |
|
Debt to Equity Ratio |
(2.21) |
Risky |
Industrial Average |
1.08 |
|
Times Interest Earned |
(30.62) |
Risky |
Industrial Average |
0.63 |
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 -30.63 lower than 1, so the company is not generating
enough cash from EBIT to meet its
interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 1.83 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 Downtrend
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
11.00 |
Impressive |
Industrial Average |
1.35 |
|
Total Assets Turnover |
2.04 |
Impressive |
Industrial Average |
1.44 |
|
Inventory Conversion Period |
135.46 |
|
|
|
|
Inventory Turnover |
2.69 |
Acceptable |
Industrial Average |
4.53 |
|
Receivables Conversion Period |
10.13 |
|
|
|
|
Receivables Turnover |
36.03 |
Impressive |
Industrial Average |
2.82 |
|
Payables Conversion Period |
178.72 |
|
|
|
The company's Account Receivable Ratio is calculated as 36.03 and 193.19
in 2012 and 2011 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 2012
decreased from 2011. 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 100 days at the
end of 2011 to 135 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 3.65 times in year 2011 to 2.69 times
in year 2012.
The company's Total Asset Turnover is calculated as 2.04 times and 2.27
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 Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.41 |
|
|
1 |
Rs.90.38 |
|
Euro |
1 |
Rs.77.61 |
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.