MIRA
INFORM REPORT
|
Report Date : |
22.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
BOOM GLOBAL
CO., LTD. |
|
|
|
|
Registered Office : |
1st Floor,
296 Ladprao 94 Road
[Panjamit], Wangthonglang, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
17.02.1998 |
|
|
|
|
Com. Reg. No.: |
0115541000733 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor and
Exporter of Dyestuff |
|
|
|
|
No. of Employees : |
60 |
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 |
|
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
BOOM
GLOBAL CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 1st FLOOR,
296 LADPRAO 94
ROAD [PANJAMIT],
WANGTHONGLANG, BANGKOK
10310
TELEPHONE : [66] 2530-3890-5
FAX :
[66] 2539-2488
E-MAIL
ADDRESS : mdp@moderndyestuffs.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1998
REGISTRATION
NO. : 0115541000733 [Former
: SOR POR 8218]
TAX
ID NO. : 3271081563
CAPITAL REGISTERED : BHT.
58,100,000
CAPITAL PAID-UP : BHT.
58,100,000
SHAREHOLDER’S PROPORTION : THAI :
51.63%
CHINESE :
48.37%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MRS.
WU CHEN, LI-HSUEH,
CHINESE
MANAGING DIRECTOR
NO.
OF STAFF : 60
LINES
OF BUSINESS : DYESTUFF
MANUFACTURER, DISTRIBUTOR
AND EXPORTER
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 February 17,
1998 as a
private limited company under
the name style
BOOM GLOBAL CO.,
LTD., by Thai
and Chinese groups, with
the business objective
to manufacture dyestuff
for textile industry
in both domestic
and oversea markets.
It currently employs
approximately 60 staff.
The
subject’s registered address is 1st Flr., 296
Ladprao 94 Rd. [Panjamit], Wangthonglang, Bangkok
10310, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
Mrs. Wu Chen, Li-Hsueh
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mrs. Wu Chen, Li-Hsueh
is the Managing
Director.
She is Chinese
nationality with the
age of 64
years old.
BUSINESS OPERATIONS
The subject is engaged
in manufacturing, distributing
and exporting of
dyestuff for textile
industry.
PRODUCTION CAPACITY
30 tons per
annum
PURCHASE
90% of raw
materials are purchased
from local suppliers,
and the remaining
10% is imported
from Japan, Republic
of China and
Taiwan.
MAJOR SUPPLIER
Modern Dyestuffs &
Pigments Co., Ltd. : Thailand
SALES [LOCAL]
80% of the
products is sold
locally by wholesale
to local textile
manufacturers.
EXPORT
20% of the
products is exported
to Malaysia, Taiwan,
Indonesia, India, Republic
of China and
Vietnam.
NAME
OF CUSTOMER
Hong
Phat New Trading
Co., Ltd. : Vietnam
RELATED AND
AFFILIATED COMPANY
Modern Dyestuffs &
Pigments Co., Ltd.
Business Type : Manufacturer
of dyestuff for
tanning industry
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
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately
60 staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Factory and warehouse are
located at 90/3 Moo 6, T. Bangwua,
A. Bangpakong, Chachoengsao 24130.
Tel. : [66]
38 540-2556, Fax :
[66] 38
540-257
COMMENT
Over fifteen years of experience has confirmed that subject’s quality
products offering its customers more value of quality including
service and support for all applications, which many of them are leading industrial enterprises.
Despite current local
market is relative
still, subject’s business
performance remains promising.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 10,000,000 divided
into 100,000 shares of
Bht. 100 each.
The
capital was decreased
and increased later
as following:
Bht. 2,500,000
on July
19, 2001 [Decreased]
Bht. 10,000,000
on August 18,
2005
Bht. 18,000,000
on June 21,
2007
Bht. 38,000,000
on November 28,
2008
Bht. 58,100,000
on May 12,
2010
The
latest registered capital
was increased to
Bht. 58,100,000 divided into
581,000 shares of
Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Emika Uprapakorn Nationality: Thai Address : 324
Ladprao 94 Rd.,
Pubpla,
Wangthonglang, Bangkok |
300,000 |
51.63 |
|
Mr. Yang, Vaugh-An Nationality: Chinese Address : 8
Jongzan Rd., Panchao,
Taiwan,
Republic of China |
101,000 |
17.38 |
|
Mrs. Tsai, Chun-Yen Nationality: Chinese Address : 6/1
Zinpau Rd., Taiyuan,
Taiwan,
Republic of China |
100,000 |
17.21 |
|
Mrs. Wu Chen, Li-Hsueh Nationality: Chinese Address : 48
Lane 198, Tuayan,
Republic of China |
80,000 |
13.78 |
Total Shareholders : 4
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
300,000 |
51.63 |
|
Foreign - Chinese |
3 |
281,000 |
48.37 |
|
Total |
4 |
581,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Suchada Chavananond
No. 2883
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 |
451,250.21 |
270,982.30 |
834,655.89 |
|
Trade Accounts and
Other Receivable |
12,180,139.82 |
15,877,272.21 |
18,992,248.56 |
|
Inventories |
74,191,748.36 |
69,728,951.04 |
56,983,827.11 |
|
|
|
|
|
|
Total Current Assets
|
86,823,138.39 |
85,877,205.55 |
76,810,731.56 |
|
|
|
|
|
|
Fixed Assets |
15,887,235.75 |
15,409,715.12 |
15,985,641.35 |
|
Intangible Assets |
7,414,439.97 |
4,976,018.76 |
40,245.50 |
|
Other Non-current Assets
|
303,200.00 |
303,200.00 |
303,200.00 |
|
Total Assets |
110,428,014.11 |
106,566,139.43 |
93,139,818.41 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
9,050,726.06 |
9,975,033.87 |
11,123,198.95 |
|
Trade Accounts and
Other Payable |
48,598,323.70 |
45,529,015.25 |
39,182,543.47 |
|
Accrued Income Tax |
424,365.47 |
428,819.70 |
- |
|
|
|
|
|
|
Total Current Liabilities |
58,073,415.23 |
55,932,868.82 |
50,305,742.42 |
|
|
|
|
|
|
Employee Benefits Obligation |
235,616.32 |
- |
- |
|
Total Liabilities |
58,309,031.55 |
55,932,868.82 |
50,305,742.42 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 581,000 shares |
58,100,000.00 |
58,100,000.00 |
58,100,000.00 |
|
|
|
|
|
|
Capital Paid |
58,100,000.00 |
58,100,000.00 |
58,100,000.00 |
|
Premium on Share Capital |
9,800.00 |
9,800.00 |
9,800.00 |
|
Retained Earning Unappropriated |
[5,990,817.44] |
[7,476,529.39] |
[15,275,724.01] |
|
Total Shareholders' Equity |
52,118,982.56 |
50,633,270.61 |
42,834,075.99 |
|
Total Liabilities & Shareholders' Equity |
110,428,014.11 |
106,566,139.43 |
93,139,818.41 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
113,033,745.48 |
117,170,884.22 |
111,208,177.91 |
|
Other Income |
249,986.18 |
336,221.33 |
6,072.41 |
|
Total Revenues |
113,283,731.66 |
117,507,105.55 |
111,214,250.32 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
98,981,207.64 |
98,199,764.45 |
91,578,134.92 |
|
Selling Expenses |
2,187,890.86 |
3,562,254.95 |
1,027,370.11 |
|
Administrative Expenses |
9,367,019.83 |
6,898,271.70 |
7,750,096.08 |
|
Total Expenses |
110,536,118.33 |
108,660,291.10 |
100,355,601.11 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
2,747,613.33 |
8,846,814.45 |
10,858,649.21 |
|
Financial Costs |
[434,735.91] |
[526,040.37] |
[451,852.99] |
|
Profit / [Loss] before Income
Tax |
2,312,877.42 |
8,320,774.08 |
10,406,796.22 |
|
Income Tax |
[827,165.47] |
[521,579.46] |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
1,485,711.95 |
7,799,194.62 |
10,406,796.22 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.50 |
1.54 |
1.53 |
|
QUICK RATIO |
TIMES |
0.22 |
0.29 |
0.39 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.11 |
7.60 |
6.96 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.02 |
1.10 |
1.19 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
273.59 |
259.18 |
227.12 |
|
INVENTORY TURNOVER |
TIMES |
1.33 |
1.41 |
1.61 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
39.33 |
49.46 |
62.34 |
|
RECEIVABLES TURNOVER |
TIMES |
9.28 |
7.38 |
5.86 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
179.21 |
169.23 |
156.17 |
|
CASH CONVERSION CYCLE |
DAYS |
133.71 |
139.41 |
133.29 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
87.57 |
83.81 |
82.35 |
|
SELLING & ADMINISTRATION |
% |
10.22 |
8.93 |
7.89 |
|
INTEREST |
% |
0.38 |
0.45 |
0.41 |
|
GROSS PROFIT MARGIN |
% |
12.65 |
16.48 |
17.66 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.43 |
7.55 |
9.76 |
|
NET PROFIT MARGIN |
% |
1.31 |
6.66 |
9.36 |
|
RETURN ON EQUITY |
% |
2.85 |
15.40 |
24.30 |
|
RETURN ON ASSET |
% |
1.35 |
7.32 |
11.17 |
|
EARNING PER SHARE |
BAHT |
2.56 |
13.42 |
17.91 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.53 |
0.52 |
0.54 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.12 |
1.10 |
1.17 |
|
TIME INTEREST EARNED |
TIMES |
6.32 |
16.82 |
24.03 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(3.53) |
5.36 |
|
|
OPERATING PROFIT |
% |
(68.94) |
(18.53) |
|
|
NET PROFIT |
% |
(80.95) |
(25.06) |
|
|
FIXED ASSETS |
% |
3.10 |
(3.60) |
|
|
TOTAL ASSETS |
% |
3.62 |
14.42 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -3.53%. Turnover has decreased from THB
117,170,884.22 in 2011 to THB 113,033,745.48 in 2012. While net profit has decreased
from THB 7,799,194.62 in 2011 to THB 1,485,711.95 in 2012. And total assets has
increased from THB 106,566,139.43 in 2011 to THB 110,428,014.11 in 2012.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
12.65 |
Deteriorated |
Industrial
Average |
40.70 |
|
Net Profit Margin |
1.31 |
Deteriorated |
Industrial
Average |
5.11 |
|
Return on Assets |
1.35 |
Deteriorated |
Industrial
Average |
4.22 |
|
Return on Equity |
2.85 |
Deteriorated |
Industrial
Average |
7.30 |
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 12.65%. 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 1.31%.
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 1.35%.
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 2.85%.
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 |
1.50 |
Satisfactory |
Industrial
Average |
1.72 |
|
Quick Ratio |
0.22 |
|
|
|
|
Cash Conversion Cycle |
133.71 |
|
|
|
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 1.5 times in 2012, decreased from 1.54 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 0.22 times in 2012,
decreased from 0.29 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 134 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.53 |
Acceptable |
Industrial
Average |
0.39 |
|
Debt to Equity Ratio |
1.12 |
Risky |
Industrial
Average |
0.65 |
|
Times Interest Earned |
6.32 |
Impressive |
Industrial
Average |
2.13 |
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 6.33 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 0.53 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 |
7.11 |
Impressive |
Industrial
Average |
0.38 |
|
Total Assets Turnover |
1.02 |
Impressive |
Industrial
Average |
0.82 |
|
Inventory Conversion Period |
273.59 |
|
|
|
|
Inventory Turnover |
1.33 |
Deteriorated |
Industrial
Average |
5.15 |
|
Receivables Conversion Period |
39.33 |
|
|
|
|
Receivables Turnover |
9.28 |
Impressive |
Industrial
Average |
2.38 |
|
Payables Conversion Period |
179.21 |
|
|
|
The company's Account Receivable Ratio is calculated as 9.28 and 7.38 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
increased from 2011. 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 259 days at the
end of 2011 to 274 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 1.41 times in year 2011 to 1.33 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.02 times and 1.1
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.59.35 |
|
|
1 |
Rs.92.11 |
|
Euro |
1 |
Rs.78.59 |
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.