MIRA INFORM REPORT
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Report Date : |
31.10.2013 |
IDENTIFICATION DETAILS
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Name : |
WATANA ENTERPRISES LIMITED PARTNERSHIP |
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Registered Office : |
29 Soi Ladprao
26, |
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Country : |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
17.03.1970 |
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Com. Reg. No.: |
0103513004647 [Former :
470/2513] |
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Legal Form : |
Limited Partnership |
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Line of Business : |
The subject is
engaged in government
bidding and supplying
various kinds of
railway parts, tools
and related equipment’s, according
to customer’s requirement. |
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No. of Employees : |
2 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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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 – March, 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
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B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
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 crisis 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
WATANA ENTERPRISES LIMITED PARTNERSHIP
SUMMARY
BUSINESS ADDRESS : 29 SOI LADPRAO
26, LADPRAO ROAD,
LADYAO, CHATUCHAK,
BANGKOK
10900, THAILAND
TELEPHONE : [66] 2511-1236,
2512-4157
FAX : [66] 2511-1239
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1970
REGISTRATION NO. : 0103513004647 [Former
: 470/2513]
TAX ID NO. : 3102057248
CAPITAL REGISTERED : BHT.
100,000
CAPITAL PAID-UP : BHT.
100,000
PARTNER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : LIMITED PARTNERSHIP
EXECUTIVE : MR.
MEESAK WATANASATORN, THAI
MANAGING PARTNER
NO. OF STAFF : 2
LINES OF BUSINESS : RAILWAY SPARE
PARTS AND RELATED
EQUIPMENT
BIDDER AND
SUPPLIER
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 17,
1970 as a
limited partnership under the
name style WATANA ENTERPRISES
LIMITED PARTNERSHIP by
Thai partners, with
the business objective
to supply railway
spare parts and
related equipment to
State Railway of
Thailand. It currently
employs 2 staff.
The subject’s registered address is 29 Soi Ladprao
26, Ladprao Rd., Ladyao,
Chatuchak, Bangkok 10900, and
this is the
subject’s current operating
address.
AUTHORIZED PERSON
Mr. Meesak Watanasatorn
Mr. Saharat Watanasatorn
Both partners can
jointly sign on
behalf of the
subject with seal
affixed. They also
bear full financial
responsibility by law.
MANAGEMENT
Mr. Meesak Watanasatorn is
the Managing Partner.
He is Thai
nationality with the
age of 56
years old.
Mr. Saharat Watanasatorn is
the Co-Managing Partner.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in government
bidding and supplying
various kinds of
railway parts, tools
and related equipments,
according to customer’s
requirement.
PURCHASE
100% of the
products is purchased
from local suppliers
and agents.
SALES
100% of the
products is sold
locally to end-users,
mainly state enterprise.
MAJOR CUSTOMER
State Railway of
Thailand
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 depend
on agreement.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
BANKING
Krung Thai Bank
Public Co., Ltd.
EMPLOYMENT
The subject employs
2 staff.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in commercial/residential area.
COMMENT
Subject is a
distributor of railway
parts, tool and equipments
by bidding to the
State Railway of Thailand. In
general, the subject’s
operating performance in
2012 was slow,
while business in
2013 is sluggish.
FINANCIAL INFORMATION
The capital was
registered at Bht.
100,000 which was
carried by 3
persons as followed:
Name Age Amount
Mr. Meesak Watanasatorn 56 Bht. 25,000 [Unlimited
Partner]
Mr. Saharat Watanasatorn - Bht. 25,000 [Unlimited
Partner]
Mrs. Boonsiri Watanasatorn - Bht. 50,000
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Mrs. Yuwadee Loylawan No.
3681
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 |
463,987.56 |
787,433.31 |
129,578.45 |
|
Trade Accounts Receivable
|
- |
3,745,941.60 |
1,693,242.90 |
|
Inventories |
551,014.19 |
1,138,887.67 |
989,240.42 |
|
Other Current Assets
|
21,850.44 |
27,257.04 |
29,951.66 |
|
|
|
|
|
|
Total Current Assets
|
1,036,852.19 |
5,699,519.62 |
2,842,013.43 |
|
Lending to Director |
5,615,028.18 |
1,825,028.18 |
4,115,028.18 |
|
Fixed Assets |
124,521.17 |
254,728.66 |
378,886.89 |
|
Other Non-current Assets |
71,338.80 |
27,108.00 |
34,960.44 |
|
Total Assets |
6,847,740.34 |
7,806,384.46 |
7,370,888.94 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable
|
172,294.84 |
172,294.84 |
- |
|
Other Current Liabilities |
17,471.29 |
105,383.23 |
264,268.37 |
|
|
|
|
|
|
Total Current Liabilities |
189,766.13 |
277,678.07 |
264,268.37 |
|
Total Liabilities |
189,766.13 |
277,678.07 |
264,268.37 |
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|
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Shareholders' Equity |
|
|
|
|
|
|
|
|
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Capital Paid |
100,000.00 |
100,000.00 |
100,000.00 |
|
Retained Earning Unappropriated [Deficit] |
6,557,974.21 |
7,428,706.39 |
7,006,620.57 |
|
Total Shareholders' Equity |
6,657,974.21 |
7,528,706.39 |
7,106,620.57 |
|
Total Liabilities & Shareholders' Equity |
6,847,740.34 |
7,806,384.46 |
7,370,888.94 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
922,200.00 |
4,807,080.00 |
2,732,470.00 |
|
Other Income |
168.35 |
434.81 |
23,449.85 |
|
Total Revenues |
922,368.35 |
4,807,514.81 |
2,755,919.85 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
581,184.02 |
3,100,000.59 |
1,311,791.01 |
|
Selling Expenses |
82,761.70 |
30,332.14 |
48,967.54 |
|
Administrative Expenses |
1,129,154.81 |
1,167,219.52 |
1,165,153.35 |
|
Total Expenses |
1,793,100.53 |
4,297,552.25 |
2,525,911.90 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
[870,732.18] |
509,962.56 |
230,007.95 |
|
Financial Cost |
- |
[7,852.44] |
[8,821.25] |
|
Profit / [Loss] before Income Tax |
[870,732.18] |
502,110.12 |
221,186.70 |
|
Income Tax |
- |
[80,024.30] |
[58,297.63] |
|
Net Profit / [Loss] |
[870,732.18] |
422,085.82 |
162,889.07 |
|
Retained Earning, Beginning
of Year |
7,428,706.39 |
7,006,620.57 |
6,843,731.50 |
|
|
|
|
|
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Retained Earning, End of Year |
6,557,974.21 |
7,428,706.39 |
7,006,620.57 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
5.46 |
20.53 |
10.75 |
|
QUICK RATIO |
TIMES |
2.45 |
16.33 |
6.90 |
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ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.41 |
18.87 |
7.21 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.13 |
0.62 |
0.37 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
346.05 |
134.09 |
275.25 |
|
INVENTORY TURNOVER |
TIMES |
1.05 |
2.72 |
1.33 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
- |
284.43 |
226.18 |
|
RECEIVABLES TURNOVER |
TIMES |
- |
1.28 |
1.61 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
108.21 |
20.29 |
- |
|
CASH CONVERSION CYCLE |
DAYS |
237.85 |
398.24 |
501.43 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
63.02 |
64.49 |
48.01 |
|
SELLING & ADMINISTRATION |
% |
131.42 |
24.91 |
44.43 |
|
INTEREST |
% |
- |
0.16 |
0.32 |
|
GROSS PROFIT MARGIN |
% |
37.00 |
35.52 |
52.85 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(94.42) |
10.61 |
8.42 |
|
NET PROFIT MARGIN |
% |
(94.42) |
8.78 |
5.96 |
|
RETURN ON EQUITY |
% |
(13.08) |
5.61 |
2.29 |
|
RETURN ON ASSET |
% |
(12.72) |
5.41 |
2.21 |
|
EARNING PER SHARE |
BAHT |
(870.73) |
422.09 |
162.89 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.03 |
0.04 |
0.04 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.03 |
0.04 |
0.04 |
|
TIME INTEREST EARNED |
TIMES |
- |
64.94 |
26.07 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(80.82) |
75.92 |
|
|
OPERATING PROFIT |
% |
(270.74) |
121.72 |
|
|
NET PROFIT |
% |
(306.29) |
159.12 |
|
|
FIXED ASSETS |
% |
(51.12) |
(32.77) |
|
|
TOTAL ASSETS |
% |
(12.28) |
5.91 |
|
ANNUAL GROWTH : RISKY
An annual sales growth is -80.82%. Turnover has decreased from THB 4,807,080.00
in 2011 to THB 922,200.00 in 2012. While net profit has decreased from THB
422,085.82 in 2011 to THB -870,732.18 in 2012. And total assets has decreased
from THB 7,806,384.46 in 2011 to THB 6,847,740.34 in 2012.
PROFITABILITY : RISKY
PROFITABILITY RATIO
|
Gross Profit Margin |
37.00 |
Acceptable |
Industrial Average |
65.27 |
|
Net Profit Margin |
(94.42) |
Deteriorated |
Industrial Average |
5.00 |
|
Return on Assets |
(12.72) |
Deteriorated |
Industrial Average |
7.38 |
|
Return on Equity |
(13.08) |
Deteriorated |
Industrial Average |
20.67 |
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 37%. 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 -94.42%.
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 -12.72%.
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 -13.08%.
Trend of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
5.46 |
Impressive |
Industrial Average |
1.33 |
|
Quick Ratio |
2.45 |
|
|
|
|
Cash Conversion Cycle |
237.85 |
|
|
|
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 5.46 times in 2012, decreased from 20.53 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 2.45 times in 2012,
decreased from 16.33 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 238 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.03 |
Impressive |
Industrial Average |
0.67 |
|
Debt to Equity Ratio |
0.03 |
Impressive |
Industrial Average |
2.02 |
|
Times Interest Earned |
- |
|
Industrial Average |
- |
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 0.03 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 Uptrend
Times Interest Earned Downtrend
ACTIVITY : ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
7.41 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.13 |
Deteriorated |
Industrial Average |
1.48 |
|
Inventory Conversion Period |
346.05 |
|
|
|
|
Inventory Turnover |
1.05 |
Deteriorated |
Industrial Average |
3.68 |
|
Receivables Conversion Period |
- |
|
|
|
|
Receivables Turnover |
- |
|
Industrial Average |
2.31 |
|
Payables Conversion Period |
108.21 |
|
|
|
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 134 days at the end of 2011
to 346 days at the end of 2012. This represents a negative trend. And Inventory
turnover has decreased from 2.72 times in year 2011 to 1.05 times in year 2012.
The company's Total Asset Turnover is calculated as 0.13 times and 0.62
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.61.49 |
|
|
1 |
Rs.98.71 |
|
Euro |
1 |
Rs.84.49 |
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.