MIRA
INFORM REPORT
|
Report Date : |
15.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
KWANG
ILL ENGINEERING [THAI]
CO., LTD. |
|
|
|
|
Registered Office : |
21 Moo
5, T. Mapkha,
A. Nikompattana, Rayong 21180 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
19.01.2001 |
|
|
|
|
Com. Reg. No.: |
0205544005531 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, distributor and
exporter of metal parts |
|
|
|
|
No. of Employees : |
100 |
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
KWANG ILL ENGINEERING [THAI] CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 21
MOO 5, T.
MAPKHA, A. NIKOMPATTANA,
RAYONG 21180,
THAILAND
TELEPHONE : [66] 38
968-841-2, 087 829-8216
FAX :
[66] 38
968-840
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2001
REGISTRATION
NO. : 0205544005531
TAX
ID NO. : 3241019251
CAPITAL REGISTERED : BHT. 16,500,000
CAPITAL PAID-UP : BHT.
16,500,000
SHAREHOLDER’S PROPORTION : THAI :
51%
SOUTH KOREAN
: 49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SON SANG
RAK, SOUTH KOREAN
PRESIDENT
NO.
OF STAFF : 100
LINES
OF BUSINESS : METAL
PARTS
MAUFACTURER, 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 January 19,
2001 as a
private limited company under
the registered name
KWANG ILL ENGINEERING
[THAI] CO., LTD.,
by Thai and
South Korean investors. Its
business objective is to
manufacture and supply
metal parts for
electric appliance industry
both domestic and
overseas markets. It currently
employs approximately 100
staff.
The
subject’s registered address
is 21 Moo
5, T. Mapkha, A. Nikompattana, Rayong
21180, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
Mr. Son Sang Rak
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Son Sang Rak
is the President.
He is South
Korean nationality with
the age of
52 years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing, distributing and
exporting of metal
parts for electric
appliance industry.
PURCHASE
80%
of its raw
materials, such as
steel, stainless steel
and aluminium are
purchased from local
supplier, the remaining
20% is imported
from Korea.
SALES
80% of the
products is sold
locally to manufacturers
and end-users, the
remaining 20% is
exported to Korea,
Malaysia and India.
RELATED AND AFFILIATED
COMPANY
Kwang Ill [Thai]
Co., Ltd.
Business Type :
Manufacturer and distributor
of metal parts
for automotive 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
T/T.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co., Ltd.
EMPLOYMENT
The
subject currently employs
approximately 100 office
staff and factory
workers.
LOCATION
DETAILS
The
premise is owned
for administrative office
and factory at
the heading address.
Premise is located
in provincial.
Warehouse
is located at
585 Moo 3, T.
Nikhompattana, A. Nikhompattana, Rayong
21180.
COMMENT
The subject
is a manufacturer and distributor of
metal parts. The products
are mainly served
electric appliance industry.
Healthy
business was reported
for 2011, while
industrial outlook for
electric appliance is upbeat.
Subject is optimistic
for growing business
in 2013.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 8,000,000
divided into 80,000
shares of Bht.
100 each with
fully paid.
The
capital was increased
later as follows:
Bht. 12,000,000
on December 12,
2003
Bht. 16,500,000
on September 29,
2010
The
latest registered capital
was increased to Bht. 16,500,000 divided
into 165,000 shares
of Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30,
2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Son Sang Rak Nationality: South Korean Address : 21
Moo 5, T. Mapkha,
A. Nikompattana, Rayong |
56,100 |
34.00 |
|
Mr. Noppol Kampol Nationality: Thai Address : 77/1
Moo 1, T. Nikompattana, A.
Nikompattana, Rayong |
34,650 |
21.00 |
|
Mrs. Lee Da Num Nationality: South Korean Address : Kyungnam,
South Korea |
24,750 |
15.00 |
|
Mr. Suriya Chanmitr Nationality: Thai Address : 126/441
Moo 7, T. Surasak,
A. Sriracha, Chonburi |
24,750 |
15.00 |
|
Mr. Ekachai Sroychak Nationality: Thai Address : 137
Moo 13, T. Soe,
A. Soepisai, Nongkai
|
24,750 |
15.00 |
Total Shareholders : 5
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
84,150 |
51.00 |
|
Foreign - South Korean |
2 |
80,850 |
49.00 |
|
Total |
5 |
165,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Ms. Chonthicha Apinawathavornkul No.
8329
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash and Cash Equivalents |
12,085,450.19 |
12,278,864.30 |
12,431,054.29 |
|
Trade Accounts &
Other Receivable |
55,165,501.83 |
60,193,951.30 |
62,641,098.96 |
|
Inventories |
26,538,480.02 |
17,826,042.15 |
1,871,801.34 |
|
Other Current Assets
|
2,769,336.55 |
2,470,615.29 |
2,801,203.91 |
|
|
|
|
|
|
Total Current Assets
|
96,558,768.59 |
92,769,473.04 |
79,745,158.50 |
|
Long-term Lending |
1,700,000.00 |
1,900,000.00 |
- |
|
Fixed Assets |
88,377,026.94 |
71,282,644.26 |
64,872,889.82 |
|
Other Non-current Assets |
120,182.05 |
139,532.05 |
158,882.05 |
|
Total Assets |
186,755,977.58 |
166,091,649.35 |
144,776,930.37 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
128,042,379.08 |
119,950,716.03 |
120,793,323.29 |
|
Current Portion of
Long-term Loans |
- |
3,120,000.00 |
3,481,719.60 |
|
Accrued Income Tax |
2,553,432.17 |
3,695,214.61 |
- |
|
Other Current Liabilities |
605,206.68 |
- |
9,063,681.41 |
|
|
|
|
|
|
Total Current Liabilities |
131,201,017.93 |
126,765,930.64 |
133,338,724.30 |
|
Long-term Loan |
- |
3,340,000.00 |
5,096,524.38 |
|
Financial Lease Contract
Payable |
1,354,361.94 |
1,092,851.68 |
59,638.35 |
|
Total Liabilities |
132,555,379.87 |
131,198,782.32 |
138,494,887.03 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 165,000 shares
in 2011 &
2010; 120,000 shares
in 2009 |
16,500,000.00 |
16,500,000.00 |
12,000,000.00 |
|
|
|
|
|
|
Capital Paid |
16,500,000.00 |
16,500,000.00 |
12,000,000.00 |
|
Retained Earning Unappropriated |
37,700,597.71 |
18,392,867.03 |
[5,717,956.66] |
|
Total Shareholders' Equity |
54,200,597.71 |
34,892,867.03 |
6,282,043.34 |
|
Total Liabilities &
Shareholders' Equity |
186,755,977.58 |
166,091,649.35 |
144,776,930.37 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales Income |
180,780,937.82 |
190,438,842.40 |
183,072,643.30 |
|
Other Income |
1,576,429.71 |
3,210,036.71 |
7,125,940.68 |
|
Total Revenues |
182,357,367.53 |
193,648,879.11 |
190,198,583.98 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
145,359,508.69 |
154,867,219.70 |
159,862,026.77 |
|
Selling Expenses |
- |
- |
2,636,278.04 |
|
Administrative Expenses |
12,913,001.00 |
9,505,268.21 |
9,154,097.84 |
|
Total Expenses |
158,272,509.69 |
164,372,487.91 |
171,652,402.65 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
24,084,857.84 |
29,276,391.20 |
18,546,181.33 |
|
Financial Costs |
[49,798.59] |
[36,990.15] |
[397,180.21] |
|
Profit / [Loss] before Income
Tax |
24,035,059.25 |
29,239,401.05 |
18,149,001.12 |
|
Income Tax |
[4,727,328.57] |
[5,128,577.36] |
[4,005,774.41] |
|
|
|
|
|
|
Net Profit / [Loss] |
19,307,730.68 |
24,110,823.69 |
14,143,226.71 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.74 |
0.73 |
0.60 |
|
QUICK RATIO |
TIMES |
0.51 |
0.57 |
0.56 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.05 |
2.67 |
2.82 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.97 |
1.15 |
1.26 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
66.64 |
42.01 |
4.27 |
|
INVENTORY TURNOVER |
TIMES |
5.48 |
8.69 |
85.41 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
111.38 |
115.37 |
124.89 |
|
RECEIVABLES TURNOVER |
TIMES |
3.28 |
3.16 |
2.92 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
321.52 |
282.71 |
275.80 |
|
CASH CONVERSION CYCLE |
DAYS |
(143.50) |
(125.32) |
(146.63) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
80.41 |
81.32 |
87.32 |
|
SELLING & ADMINISTRATION |
% |
7.14 |
4.99 |
6.44 |
|
INTEREST |
% |
0.03 |
0.02 |
0.22 |
|
GROSS PROFIT MARGIN |
% |
20.47 |
20.36 |
16.57 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
13.32 |
15.37 |
10.13 |
|
NET PROFIT MARGIN |
% |
10.68 |
12.66 |
7.73 |
|
RETURN ON EQUITY |
% |
35.62 |
69.10 |
225.14 |
|
RETURN ON ASSET |
% |
10.34 |
14.52 |
9.77 |
|
EARNING PER SHARE |
BAHT |
117.02 |
146.13 |
117.86 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.71 |
0.79 |
0.96 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.45 |
3.76 |
22.05 |
|
TIME INTEREST EARNED |
TIMES |
483.65 |
791.46 |
46.69 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(5.07) |
4.02 |
|
|
OPERATING PROFIT |
% |
(17.73) |
57.86 |
|
|
NET PROFIT |
% |
(19.92) |
70.48 |
|
|
FIXED ASSETS |
% |
23.98 |
9.88 |
|
|
TOTAL ASSETS |
% |
12.44 |
14.72 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -5.07%. Turnover has decreased from THB
190,438,842.40 in 2010 to THB 180,780,937.82 in 2011. While net profit has decreased
from THB 24,110,823.69 in 2010 to THB 19,307,730.68 in 2011. And total assets
has increased from THB 166,091,649.35 in 2010 to THB 186,755,977.58 in 2011.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
20.47 |
Impressive |
Industrial Average |
14.05 |
|
Net Profit Margin |
10.68 |
Impressive |
Industrial Average |
3.37 |
|
Return on Assets |
10.34 |
Impressive |
Industrial Average |
4.00 |
|
Return on Equity |
35.62 |
Impressive |
Industrial Average |
7.42 |
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 20.47%. 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. The company’s figure is 10.68%,
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
10.34%, 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 35.62%, 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 :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
0.74 |
Risky |
Industrial Average |
1.39 |
|
Quick Ratio |
0.51 |
|
|
|
|
Cash Conversion Cycle |
(143.50) |
|
|
|
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 0.74 times in 2011, increased from 0.73 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 0.51 times in 2011,
decreased from 0.57 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 -144 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.71 |
Acceptable |
Industrial Average |
0.49 |
|
Debt to Equity Ratio |
2.45 |
Risky |
Industrial Average |
0.90 |
|
Times Interest Earned |
483.65 |
Impressive |
Industrial Average |
4.54 |
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 483.65 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 0.71 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
2.05 |
Satisfactory |
Industrial Average |
2.20 |
|
Total Assets Turnover |
0.97 |
Satisfactory |
Industrial Average |
1.17 |
|
Inventory Conversion Period |
66.64 |
|
|
|
|
Inventory Turnover |
5.48 |
Impressive |
Industrial Average |
5.14 |
|
Receivables Conversion Period |
111.38 |
|
|
|
|
Receivables Turnover |
3.28 |
Acceptable |
Industrial Average |
5.24 |
|
Payables Conversion Period |
321.52 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.28 and 3.16 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 42 days at the
end of 2010 to 67 days at the end of 2011. This represents a negative trend.
And Inventory turnover has decreased
from 8.69 times in year 2010 to 5.48 times in year 2011.
The company's Total Asset Turnover is calculated as 0.97 times and 1.15
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 Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.44 |
|
UK Pound |
1 |
Rs.81.33 |
|
Euro |
1 |
Rs.70.50 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.