MIRA INFORM REPORT
|
Report Date : |
31.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
ROTA LEATHER GOODS CO., LTD. |
|
|
|
|
Registered Office : |
83/33-34 Moo 2, Soi Bangmekkhao [Bangpoo 54], Sukhumvit Road, T. Taiban, A. Muang, Samutprakarn 10280 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
24.08.1992 |
|
|
|
|
Com. Reg. No.: |
0115535006474 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Exporter and Distributor Leather Goods |
|
|
|
|
No. of Employees : |
30 |
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 : |
Good |
|
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 – 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
ROTA
LEATHER GOODS CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 83/33-34 MOO 2, SOI
BANGMEKKHAO [BANGPOO 54],
SUKHUMVIT ROAD,
T. TAIBAN, A. MUANG,
SAMUTPRAKARN 10280,
THAILAND
TELEPHONE : [66] 2388-0836,
2389-2405-8
FAX :
[66] 2388-0837
E-MAIL
ADDRESS : info@rotathai.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1992
REGISTRATION
NO. : 0115535006474
TAX
ID NO. : 3271041789
CAPITAL REGISTERED : BHT. 3,000,000
CAPITAL PAID-UP : BHT.
3,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. NIRAND BUASA-ARD,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 30
LINES
OF BUSINESS : LEATHER GOODS
MANUFACTURER, EXPORTER
AND 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 August 24,
1992 as a
private limited company under
the registered name
ROTA LEATHER GOODS
CO., LTD., by
Thai groups, the Buasa-ard
family, with the
business objective to
manufacture various kinds
of leather goods
made from stingray
skins also known
as “Galuchat” to
both export and domestic
markets. It currently
employs approximately 30 staff.
The subject is
also the biggest
exporter of stingray
leather goods in
Thailand.
The
subject’s registered address
is 83/33-34 Moo
2, Soi Bangmekkhao [Bangpoo 54],
Sukhumvit Road, T. Taiban,
A. Muang, Samutprakarn 10280,
and this is
the subject’s current
operation address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Nirand Buasa-ard |
|
Thai |
58 |
|
Mrs. Suphee Buasa-ard |
|
Thai |
58 |
|
Ms. Surinporn Buasa-ard |
|
Thai |
33 |
|
Mr. Sutthi Buasa-ard |
|
Thai |
32 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Nirand Buasa-ard is
the Managing Director.
He is Thai
nationality with the
age of 58
years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing, exporting and
distributing various kinds
of leather goods
specially from stingray
skin. Its products
include documentary bag,
swing bag, cosmetic
bags, lady’s handbags,
knapsacks, briefcases, wallet,
as well as,
belts and accessories,
such as bracelet,
key holder, eye
glasses case, card
holder, passport cover,
money clip and etc.,
under its own
brand name “ROTA”.
PURCHASE
100% of raw
materials are purchased
from local suppliers.
MAJOR
SUPPLIER
Thai
Ocean Product Co.,
Ltd. : Thailand
SALES
The products are
sold by wholesale
to customers both
local and overseas
mainly in U.S.A., Japan,
Korea, Taiwan, Hong
Kong, Malaysia, and
Republic of China.
RELATED AND AFFILIATED
COMPANY
Thai Ocean Product
Co., Ltd.
Business Type :
Manufacturer of finished
leather
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.
Exports are against
T/T.
BANKING
The
banker’s name was not
disclosed.
EMPLOYMENT
The
subject employs approximately
30 staff.
LOCATION DETAILS
The
premise is owned for
administrative office, factory
and warehouse at the heading
address. Premise is
located in provincial,
on the outskirts
of Bangkok.
COMMENT
The
subject is a
manufacturer, exporter and distributor of leather
goods made from stingray
skin. Its main
market is in
overseas which the
products are more
popular than in
domestic market.
Subject
reported moderate income
in the year
2012 as well as
expansion into new
market.
FINANCIAL INFORMATION
The
capital was registered at Bht. 2,000,000 divided
into 20,000 shares
of Bht. 100 each
with fully paid.
On
March 15, 2000,
the registered capital
was increased to
Bht. 3,000,000 divided
into 30,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Nirand Buasa-ard Nationality: Thai Address : 83/32
Moo 2, T. Taiban,
A. Muang,
Samutprakarn |
18,000 |
60.00 |
|
Mrs. Suphee Buasa-ard Nationality: Thai Address : 233/451
Moo 5, T. Bangmuang, A. Muang, Samutprakarn |
6,000 |
20.00 |
|
Ms. Surinporn Buasa-ard Nationality: Thai Address : 233/451
Moo 5, T. Bangmuang, A. Muang,
Samutprakarn |
3,000 |
10.00 |
|
Mr. Sutthi Buasa-ard Nationality: Thai Address : 233/451
Moo 5, T. Bangmuang, A. Muang,
Samutprakarn |
3,000 |
10.00 |
Total Shareholders : 4
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
30,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
4 |
30,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Prinya Sutthiyang No.
4719
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 |
2,781,832.34 |
79,607.02 |
214,319.05 |
|
Short-term Lending to
Related Company |
4,300,000.00 |
4,500,000.00 |
3,500,000.00 |
|
Inventories |
2,542,227.48 |
2,345,613.10 |
2,982,078.50 |
|
Other Current Assets
|
1,927,650.60 |
1,177,808.96 |
919,650.47 |
|
|
|
|
|
|
Total Current Assets
|
11,551,710.42 |
8,103,029.08 |
7,616,048.02 |
|
|
|
|
|
|
Fixed Assets |
520,442.76 |
294,065.84 |
265,024.11 |
|
Total Assets |
12,072,153.18 |
8,397,094.92 |
7,881,072.13 |
LIABILITIES & SHAREHOLDERS’
EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable
& Postdated Cheque |
3,053,729.71 |
263,413.67 |
127,389.92 |
|
Accrued Income Tax |
125,577.91 |
84,359.45 |
89,759.23 |
|
Other Current Liabilities |
548,491.61 |
564,339.00 |
705,480.00 |
|
|
|
|
|
|
Total Current Liabilities |
3,727,799.23 |
912,112.12 |
922,629.16 |
|
|
|
|
|
|
Employee Benefits Obligation |
434,331.43 |
444,152.97 |
- |
|
Total Liabilities |
4,162,130.66 |
1,356,265.09 |
922,629.16 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 30,000 shares |
3,000,000.00 |
3,000,000.00 |
3,000,000.00 |
|
|
|
|
|
|
Capital Paid |
3,000,000.00 |
3,000,000.00 |
3,000,000.00 |
|
Retained Earning Unappropriated |
4,910,022.52 |
4,040,829.83 |
3,958,442.98 |
|
Total Shareholders' Equity |
7,910,022.52 |
7,040,829.83 |
6,958,442.98 |
|
Total Liabilities &
Shareholders' Equity |
12,072,153.18 |
8,397,094.92 |
7,881,072.13 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
16,734,422.62 |
11,848,932.97 |
11,933,784.08 |
|
Other Income |
180,737.61 |
53,506.85 |
61,221.23 |
|
Total Revenues |
16,915,160.23 |
11,902,439.82 |
11,995,005.31 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
14,064,724.15 |
9,334,743.29 |
9,700,138.82 |
|
Selling Expenses |
193,894.58 |
290,104.00 |
330,856.58 |
|
Administrative Expenses |
1,659,570.90 |
2,110,246.23 |
1,650,671.72 |
|
Total Expenses |
15,918,189.63 |
11,735,093.52 |
11,681,667.12 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
996,970.60 |
167,346.30 |
313,338.19 |
|
Financial Costs |
[2,200.00] |
[600.00] |
- |
|
Profit / [Loss] before Income
Tax |
994,770.60 |
166,746.30 |
313,338.19 |
|
Income Tax |
[125,577.91] |
[84,359.45] |
[89,759.23] |
|
|
|
|
|
|
Net Profit / [Loss] |
869,192.69 |
82,386.85 |
223,578.96 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
3.10 |
8.88 |
8.25 |
|
QUICK RATIO |
TIMES |
1.90 |
5.02 |
4.03 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
32.15 |
40.29 |
45.03 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.39 |
1.41 |
1.51 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
65.97 |
91.72 |
112.21 |
|
INVENTORY TURNOVER |
TIMES |
5.53 |
3.98 |
3.25 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
RECEIVABLES TURNOVER |
TIMES |
- |
- |
- |
|
PAYABLES CONVERSION PERIOD |
DAYS |
79.25 |
10.30 |
4.79 |
|
CASH CONVERSION CYCLE |
DAYS |
(13.27) |
81.42 |
107.42 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
84.05 |
78.78 |
81.28 |
|
SELLING & ADMINISTRATION |
% |
11.08 |
20.26 |
16.60 |
|
INTEREST |
% |
0.01 |
0.01 |
- |
|
GROSS PROFIT MARGIN |
% |
17.03 |
21.67 |
19.23 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.96 |
1.41 |
2.63 |
|
NET PROFIT MARGIN |
% |
5.19 |
0.70 |
1.87 |
|
RETURN ON EQUITY |
% |
10.99 |
1.17 |
3.21 |
|
RETURN ON ASSET |
% |
7.20 |
0.98 |
2.84 |
|
EARNING PER SHARE |
BAHT |
28.97 |
2.75 |
7.45 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.34 |
0.16 |
0.12 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.53 |
0.19 |
0.13 |
|
TIME INTEREST EARNED |
TIMES |
453.17 |
278.91 |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
41.23 |
(0.71) |
|
|
OPERATING PROFIT |
% |
495.75 |
(46.59) |
|
|
NET PROFIT |
% |
955.01 |
(63.15) |
|
|
FIXED ASSETS |
% |
76.98 |
10.96 |
|
|
TOTAL ASSETS |
% |
43.77 |
6.55 |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 41.23%. Turnover has increased from THB
11,848,932.97 in 2011 to THB 16,734,422.62 in 2012. While net profit has increased
from THB 82,386.85 in 2011 to THB 869,192.69 in 2012. And total assets has
increased from THB 8,397,094.92 in 2011 to THB 12,072,153.18 in 2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
17.03 |
Impressive |
Industrial
Average |
12.15 |
|
Net Profit Margin |
5.19 |
Impressive |
Industrial
Average |
2.03 |
|
Return on Assets |
7.20 |
Impressive |
Industrial
Average |
3.16 |
|
Return on Equity |
10.99 |
Impressive |
Industrial
Average |
6.93 |
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 17.03%. 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 5.19%,
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
7.2%, 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 10.99%, 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 :
IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
3.10 |
Impressive |
Industrial
Average |
1.47 |
|
Quick Ratio |
1.90 |
|
|
|
|
Cash Conversion Cycle |
(13.27) |
|
|
|
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 3.1 times in 2012, decreased from 8.88 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 1.9 times in 2012,
decreased from 5.02 times, although excluding inventory so the company still
have good short-term financial strength.
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 -14 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.34 |
Impressive |
Industrial
Average |
0.54 |
|
Debt to Equity Ratio |
0.53 |
Impressive |
Industrial
Average |
1.12 |
|
Times Interest Earned |
453.17 |
Impressive |
Industrial
Average |
2.00 |
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.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 453.17 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 0.34 less than 0.5, most of the company's
assets are financed through equity.
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 |
32.15 |
Impressive |
Industrial
Average |
1.08 |
|
Total Assets Turnover |
1.39 |
Satisfactory |
Industrial
Average |
1.62 |
|
Inventory Conversion Period |
65.97 |
|
|
|
|
Inventory Turnover |
5.53 |
Impressive |
Industrial
Average |
4.57 |
|
Receivables Conversion Period |
- |
|
|
|
|
Receivables Turnover |
- |
|
Industrial
Average |
2.84 |
|
Payables Conversion Period |
79.25 |
|
|
|
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 decreased from 92 days at the
end of 2011 to 66 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 3.98 times in year 2011 to 5.53 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.39 times and 1.41
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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.56.10 |
|
|
1 |
Rs.85.13 |
|
Euro |
1 |
Rs.72.80 |
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.