MIRA
INFORM REPORT
|
Report Date : |
18.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
HUA SENG CANNING CO., LTD. |
|
|
|
|
Registered Office : |
38/54 Moo 5, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
29.02.1988 |
|
|
|
|
Com. Reg. No.: |
0105531014375 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturing And Exporting
Various Kinds of
Canned Season Fruits
And Vegetables, Under
Its own Brands
“APOLLO” And “BUTTERFLY”, |
|
|
|
|
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 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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. 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 in 2013 implemented a
nation-wide 300 baht ($10) per day minimum wage policy and deployed 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 recession severely cut Thailand's exports, with most sectors
experiencing double-digit drops. In late 2011 Thailand's recovery was
interrupted by historic flooding in the industrial areas in Bangkok and its
five surrounding provinces, crippling the manufacturing sector. The government
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 following seven years. This was expected to lead to an
economic upsurge but growth has remained slow, in part due to ongoing political
unrest and resulting uncertainties. Spending on infrastructure will require
re-approval once a new government is seated.
|
Source
: CIA |
COMPANY NAME
HUA SENG CANNING
CO., LTD.
SUMMARY
BUSINESS ADDRESS : 38/54 MOO 5,
SUKSAWAD ROAD, JOMTHONG,
BANGKOK 10150,
THAILAND
TELEPHONE : [66] 2468-0517,
2468-9597, 2460-0715
FAX : [66] 2468-4942
E-MAIL ADDRESS : huasengcanning@outlook.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1988
REGISTRATION NO. : 0105531014375
TAX ID NO. : 3101503074
CAPITAL REGISTERED : BHT.
6,000,000
CAPITAL PAID-UP : BHT.
6,000,000
SHAREHOLDER’S PROPORTION : THAI
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
KIATBODIN CHANAPATCHOTIKORN, THAI
MANAGING DIRECTOR
NO. OF STAFF : 100
LINES OF BUSINESS : CANNED FRUITS
AND VEGETABLES
MANUFACTURER 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 February 29,
1988 as a
private limited company
under the registered
name HUA SENG CANNING CO.,
LTD., by Thai groups, with
the business objective
to manufacture various
kinds of canned
fruits and vegetables
for exports. It
currently employs approximately
100 staff.
The subject’s registered
address is 38/54
Moo 5, Suksawad Road, Jomthong,
Bangkok 10150, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kiatbodin Chanapatchotikorn |
|
Thai |
56 |
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Kiatbodin Chanapatchotikorn is
the Managing Director.
He is Thai
nationality with the age
of 56 years
old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
and exporting various
kinds of canned
season fruits and
vegetables, under its
own brands “APOLLO” and “BUTTERFLY”, as
well as provide
manufacturing service of
the products under
customer’s brands.
PURCHASE
100% of raw
materials and ingredients
are purchased from
local suppliers.
EXPORT
100% of the
products is exported
to Republic of
China, Australia, Malaysia,
Indonesia, Hong Kong,
Japan, Singapore, and
the country in
Europe.
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
CREDIT
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject employs
approximately 100 office
staff and factory
workers.
LOCATION DETAILS
The premise is
owned for administrative office,
factory and warehouse
at the heading
address. Premise is
located in industrial
area.
Note:
In September 2014,
the subject will
move its office,
factory and warehouse
to a new location which
is opposite from
the current location.
COMMENT
The subject is a
manufacturer and exporter of
canned fruits and
vegetables for export
markets. It reported
moderate sales in
the year 2013
due to improving
consumption in overseas
markets. An optimistic
is also forecasted
to increase its
sales this year.
FINANCIAL INFORMATION
The capital was
registered at Bht. 1,000,000 divided
into 10,000 shares
of Bht. 100 each
with fully paid.
On November 5,
2001, the registered
capital was increased
to Bht. 6,000,000
divided into 60,000
shares of Bht. 100
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE
[as at April
30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Kiatbodin Chanapatchotikorn Nationality: Thai Address : 38/54
Moo 5, Suksawad
Road, Jomthong,
Bangkok |
30,000 |
50.00 |
|
Mrs. Chatchanok Ronchaichana Nationality: Thai Address : 38/54
Moo 5, Suksawad
Road, Jomthong,
Bangkok |
28,000 |
46.67 |
|
Mr. Prapat Chanapatchotikorn Nationality: Thai Address : 38/54
Moo 5, Suksawad
Road, Jomthong, Bangkok |
2,000 |
3.33 |
Total Shareholders : 3
Share Structure
[as at April
30, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
60,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
60,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mr. Taweesak
Nimmanpreechakul No. 7522
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2013,
2012 & 2011
were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents
|
31,175.31 |
64,381.68 |
97,373.92 |
|
Trade Accounts &
Other Receivable |
61,959.29 |
59,869.91 |
43,776.74 |
|
Inventories |
14,909,348.63 |
24,896,993.00 |
19,800,532.46 |
|
|
|
|
|
|
Total Current Assets
|
15,002,483.23 |
25,021,244.59 |
19,941,683.12 |
|
Other Long-term Investment |
114,197.26 |
112,035.87 |
109,731.76 |
|
Fixed Assets |
18,008,300.01 |
18,428,230.66 |
19,195,186.91 |
|
Other Non-current Assets |
7,000.00 |
7,000.00 |
7,001.22 |
|
Total Assets |
33,131,980.50 |
43,568,511.12 |
39,253,603.01 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts &
Other Payable |
20,002,495.29 |
16,761,231.32 |
19,146,735.18 |
|
Short-term Loan from
Person or Related Company |
18,080,000.00 |
830,000.00 |
- |
|
Current Portion of
Accrued Interest |
- |
1,450,000.00 |
800,000.00 |
|
Accrued Income Tax |
386,820.71 |
- |
- |
|
|
|
|
|
|
Total Current Liabilities |
38,469,316.00 |
19,041,231.32 |
19,946,735.18 |
|
Long-term Loan from
Financial Institution |
- |
20,270,898.20 |
20,270,898.20 |
|
Accrued Interest |
505,008.92 |
14,317,748.05 |
15,492,019.70 |
|
Total Liabilities |
38,974,324.92 |
53,629,877.57 |
55,709,653.08 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100 par
value Authorized & issued share
capital 60,000 shares
|
6,000,000.00 |
6,000,000.00 |
6,000,000.00 |
|
|
|
|
|
|
Capital Paid |
6,000,000.00 |
6,000,000.00 |
6,000,000.00 |
|
Retained Earning - Unappropriated
[Deficit] |
[11,842,344.42] |
[16,061,366.45] |
[22,456,050.07] |
|
|
|
|
|
|
Total Shareholders' Equity |
[5,842,344.42] |
[10,061,366.45] |
[16,456,050.07] |
|
Total Liabilities & Shareholders' Equity |
33,131,980.50 |
43,568,511.12 |
39,253,603.01 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
87,320,376.48 |
78,182,465.14 |
101,487,845.13 |
|
Gain from Debt
Restructuring |
9,328,931.45 |
- |
- |
|
Other Income |
321,085.23 |
4,648.74 |
1,295.91 |
|
Total Revenues |
96,970,393.16 |
78,187,113.88 |
101,489,141.04 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Change in Finished
Goods |
10,975,144.94 |
506,448.06 |
[16,899,188.46] |
|
Purchase of Finished
Goods |
12,133,272.50 |
2,744,051.94 |
- |
|
Raw Material &
Material Supplies |
53,926,476.30 |
57,050,317.21 |
97,005,233.96 |
|
Fuel Expenses |
2,580,000.00 |
3,104,700.00 |
4,455,125.00 |
|
Wages Expenses |
4,544,626.40 |
4,657,580.35 |
4,268,565.98 |
|
Employees’ Expenses |
1,709,966.00 |
679,140.00 |
670,235.00 |
|
Depreciation |
655,344.48 |
800,744.61 |
1,143,921.24 |
|
Other Expenses |
5,058,579.93 |
2,103,389.14 |
2,308,308.61 |
|
Total Expenses |
91,583,410.55 |
71,646,371.31 |
92,952,201.33 |
|
|
|
|
|
|
Profit / Loss] before Financial
Cost & Income Tax |
5,386,982.61 |
6,540,742.57 |
8,536,939.71 |
|
Financial Cost |
[505,397.23] |
[146,058.95] |
[8,917,642.34] |
|
|
|
|
|
|
Profit / [Loss] before Income Tax
|
4,881,585.38 |
6,394,683.62 |
[380,702.63] |
|
Income Tax |
[662,563.35] |
- |
- |
|
Net Profit / [Loss] |
4,219,022.03 |
6,394,683.62 |
[380,702.63] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.39 |
1.31 |
1.00 |
|
QUICK RATIO |
TIMES |
0.00 |
0.01 |
0.01 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.85 |
4.24 |
5.29 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.64 |
1.79 |
2.59 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
82.38 |
151.98 |
74.50 |
|
INVENTORY TURNOVER |
TIMES |
4.43 |
2.40 |
4.90 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
0.26 |
0.28 |
0.16 |
|
RECEIVABLES TURNOVER |
TIMES |
1,409.32 |
1,305.87 |
2,318.31 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
110.52 |
102.31 |
72.04 |
|
CASH CONVERSION CYCLE |
DAYS |
(27.88) |
49.94 |
2.62 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
75.65 |
76.48 |
95.58 |
|
SELLING & ADMINISTRATION |
% |
10.87 |
11.82 |
10.38 |
|
INTEREST |
% |
0.58 |
0.19 |
8.79 |
|
GROSS PROFIT MARGIN |
% |
35.40 |
23.53 |
4.42 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
6.17 |
8.37 |
8.41 |
|
NET PROFIT MARGIN |
% |
4.83 |
8.18 |
(0.38) |
|
RETURN ON EQUITY |
% |
- |
- |
- |
|
RETURN ON ASSET |
% |
12.73 |
14.68 |
(0.97) |
|
EARNING PER SHARE |
BAHT |
70.32 |
106.58 |
(6.35) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
1.18 |
1.23 |
1.42 |
|
DEBT TO EQUITY RATIO |
TIMES |
(6.67) |
(5.33) |
(3.39) |
|
TIME INTEREST EARNED |
TIMES |
10.66 |
44.78 |
0.96 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
11.69 |
(22.96) |
|
|
OPERATING PROFIT |
% |
(17.64) |
(23.38) |
|
|
NET PROFIT |
% |
(34.02) |
1,779.71 |
|
|
FIXED ASSETS |
% |
(2.28) |
(4.00) |
|
|
TOTAL ASSETS |
% |
(23.95) |
10.99 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is 11.69%. Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY RATIO
|
Gross Profit Margin |
35.40 |
Impressive |
Industrial Average |
20.67 |
|
Net Profit Margin |
4.83 |
Impressive |
Industrial Average |
3.53 |
|
Return on Assets |
12.73 |
Impressive |
Industrial Average |
6.00 |
|
Return on Equity |
- |
|
Industrial Average |
22.67 |
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 35.4%. 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 4.83%, 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
12.73%, 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 Uptrend
Return on Equity Uptrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
0.39 |
Risky |
Industrial Average |
1.30 |
|
Quick Ratio |
0.00 |
|
|
|
|
Cash Conversion Cycle |
(27.88) |
|
|
|
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 0.39 times in 2013, decreased from 1.31 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 times in 2013,
decreased 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 -28 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
1.18 |
Risky |
Industrial Average |
0.90 |
|
Debt to Equity Ratio |
(6.67) |
Risky |
Industrial Average |
2.98 |
|
Times Interest Earned |
10.66 |
Impressive |
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 higher the percentage means that the company is
using less equity and has stronger leverage position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 10.66 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 1.18 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 Uptrend
Times Interest Earned Stable
ACTIVITY :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
4.85 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
2.64 |
Impressive |
Industrial Average |
2.20 |
|
Inventory Conversion Period |
82.38 |
|
|
|
|
Inventory Turnover |
4.43 |
Satisfactory |
Industrial Average |
5.71 |
|
Receivables Conversion Period |
0.26 |
|
|
|
|
Receivables Turnover |
1,409.32 |
Impressive |
Industrial Average |
8.16 |
|
Payables Conversion Period |
110.52 |
|
|
|
The company's Account Receivable Ratio is calculated as 1,409.32 and
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 152 days at the
end of 2012 to 82 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 2.4 times in year 2012 to 4.43 times
in year 2013.
The company's Total Asset Turnover is calculated as 2.64 times and 1.79
times in 2013 and 2012 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 Stable
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.06 |
|
|
1 |
Rs.101.84 |
|
Euro |
1 |
Rs.81.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
SHG |
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.