MIRA INFORM REPORT

 

 

Report Date :

23.12.2014

 

IDENTIFICATION DETAILS

 

Name :

CG PACKAGING CO., LTD.

 

 

Registered Office :

3rd  Floor,  Olympia  Thai  Tower, 444 Ratchadapisek  Road,  Samsennok, Huaykwang,  Bangkok  10320

 

 

Country :

Thailand

 

 

Financials (as on) :

30.06.2014

 

 

Date of Incorporation :

17.10.2008

 

 

Com. Reg. No.:

0105551117668

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Distributor of Printing and Packaging Products

 

 

No. of Employees :

Not Available

 

 

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 – September 30, 2014

 

Country Name

Previous Rating

(30.06.2014)

Current Rating

(30.09.2014)

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

 

CG PACKAGING CO., LTD.

 

 

SUMMARY

 

BUSINESS  ADDRESS              :           3rd  FLOOR,  OLYMPIA  THAI  TOWER,

444  RATCHADAPISEK  ROAD,  SAMSENNOK,

HUAYKWANG,  BANGKOK  10320,  THAILAND

TELEPHONE                                        :           [66]   2541-4357

FAX                                                      :           [66]   2541-4357

E-MAIL  ADDRESS                               :           -

REGISTRATION  ADDRESS                  :           134  PANWADEE  PLACE,  SOI  LADPRAO  64,

                                                                        LADPRAO  ROAD,  WANGTHONGLANG,

                                                                        BANGKOK  10310,  THAILAND

 

ESTABLISHED                        :           2008

REGISTRATION  NO.                           :           0105551117668

TAX  ID  NO.                                         :           3033256062

CAPITAL REGISTERED                        :           BHT.   3,000,000

CAPITAL PAID-UP                                :           BHT.   3,000,000

SHAREHOLDER’S  PROPORTION        :           AMERICAN     :   100%

FISCAL YEAR CLOSING DATE             :           JUNE  30           

LEGAL  STATUS                                  :           PRIVATE  LIMITED  COMPANY

EXECUTIVE                                         :           -          

 

NO.  OF  STAFF                                   :           -

LINES  OF  BUSINESS             :           PRINTING  AND  PACKAGING  PRODUCTS

                                                                        DISTRIBUTOR

                                                                         

 

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  October  17,  2008  as  a  private  limited  company  under  the  originally  registered  name “Greenfield  Global  Company  Limited” by  American group.  On  May  26,  2009,  its  registered  name  was  changed  to  CG  PACKAGING  CO.,  LTD.     Its  business  objective  was  declared  to  the  Commercial  Registration  Department   to  distribute  printing  and  packaging  products.  

 

The  subject’s  registered  address  is  134  Panwadee  Place,  Soi  Ladprao  64,  Ladprao  Road,  Wangthonglang,  Bangkok  10310,  while  the  current  operation  address  is  3rd Floor, Olympia Thai  Tower,  444 Ratchadapisek Road, Samsennok, Huaykwang,  Bangkok  10320.  

 

 

THE BOARD OF DIRECTOR

 

     Name

 

Nationality

Age

 

 

 

 

Mr. Smith  Lee  Lankford

 

American

42

Mr. Gerard  Paul  Lux  Junior

 

American

57

Mr. Alan  Boyd  Parnell

 

American

48

Mr. John  Andrew  Riley

 

American

60

Mr. Meenawat  Tonyoopaiboon

 

Thai

35

 

 

AUTHORIZED PERSON

 

Anyone  of  the  above  directors  can  sign  on  behalf  of  the  subject  with  company’s  affixed.

 

 

LOCATION DETAILS

 

The  premise  is  rented for  administrative  office  at  the  heading  address.  Premise  is  located  in  commercial/residential  area.

 

Note:

 

The  subject  refused  to  release  any  company’s  information.

 

 

COMMENT

 

The  subject reported  moderate  sales  in  2013.  However,  its  sales  were  slowdown  from  the  previous years’  level.   Economy  slowdown  has  pressured  its  business  in  the  year  2014  as  well.

 

 

 

FINANCIAL INFORMATION

 

The  capital  was  registered at  Bht. 3,000,000  divided  into 30,000  shares  of  Bht. 100  each  with  fully  paid.

 

THE  SHAREHOLDERS  LISTED  WERE  :  [as  at  October  30,  2014]

 

       NAME

HOLDING

%

 

 

 

Mr. Smith  Lee  Lankford

Nationality:  American

Address     :  46  Sukhumvit  3  Road,  Klongtoeynua,

                     Wattana,  Bangkok 

7,500

25.00

Mr. Gerard  Paul  Lux  Junior

Nationality:  American

Address     :  46  Sukhumvit  3  Road,  Klongtoeynua,

                     Wattana,  Bangkok 

7,500

25.00

Mr. Alan  Boyd  Parnell

Nationality:  American

Address     :  46  Sukhumvit  3  Road,  Klongtoeynua,

                     Wattana,  Bangkok 

7,500

25.00

Mr. John  Andrew  Riley

Nationality:  American

Address     :  46  Sukhumvit  3  Road,  Klongtoeynua,

                     Wattana,  Bangkok 

7,500

25.00

 

Total  Shareholders  :   4

 

Share  Structure  [as  at  October  30,  2014]

 

Nationality

Shareholders

No. of  Share

% Shares

 

 

 

 

Thai

-

-

-

Foreign - American

4

30,000

100.00

 

Total

 

4

 

30,000

 

100.00

 

 

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT  NO.

 

Ms. Duangporn  Leelamaenthep  No. 10855

BALANCE SHEET [BAHT]

 

The  latest  financial figures  published  as  at  June  30,  2014,  2013  &  2012  were:

          

ASSETS

                                                                                                

Current Assets

2014

2013

2012

 

 

 

 

Cash  and Cash Equivalents     

4,505,780

1,679,229

2,812,289

Trade  Accounts  &  Other  Receivable 

 

 

 

  Trade  Accounts  Receivable

3,829,542

8,542,093

4,705,925

  Trade  Accounts  Receivable

    - Related  company

 

1,159,058

 

1,111,540

 

1,136,664

  Other  Receivable - Related  company

2,514,352

2,207,959

1,411,044

  Other  Receivable 

1,778,280

3,972,908

1,325,862

Inventories     

10,800

-

-

 

 

 

 

Total  Current  Assets                

13,797,812

17,513,729

11,391,784

 

 

 

 

Equipment

141,371

140,136

179,366

Deposits

104,728

42,428

42,428

 

Total  Assets                 

 

14,043,911

 

17,696,293

 

11,613,578

 

 

LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]

 

Current Liabilities

2014

2013

2012

 

 

 

 

Trade  Accounts  & Other  Payable    

 

 

 

   Trade  Accounts  Payable    

3,241,525

5,002,827

1,887,200

   Other  Payable    

1,083,260

3,855,141

2,173,742

   Other  Payable - Related company   

1,682,075

1,548,115

1,071,402

Accrued Income Tax

-

-

409,826

 

 

 

 

Total Current Liabilities

6,006,860

10,406,083

5,542,170

 

Total  Liabilities            

 

6,006,860

 

10,406,083

 

5,542,170

 

 

 

 

Shareholders' Equity

 

 

 

 

 

 

 

Share  capital : Baht  100  par  value 

  authorized,  issued  and  fully 

  paid  share  capital  30,000  shares

 

 

3,000,000

 

 

3,000,000

 

 

3,000,000

 

 

 

 

Capital  Paid                     

3,000,000

3,000,000

3,000,000

Retained Earning  Unappropriated

5,037,051

4,290,210

3,071,408

 

Total  Shareholders' Equity

 

8,037,051

 

7,290,210

 

6,071,408

 

Total  Liabilities &  Shareholders' 

   Equity

 

 

14,043,911

 

 

17,696,293

 

 

11,613,578

                                                   

 

PROFIT & LOSS ACCOUNT

 

Revenue

2014

2013

2012

 

 

 

 

Sales  Income

46,227,941

52,537,669

71,656,053

Other  Income                

96,423

3,467

93,043

 

Total  Revenues            

 

46,324,364

 

52,541,136

 

71,749,096

 

Expenses

 

 

 

 

 

 

 

Cost  of  Goods  Sold  

35,910,142

40,776,811

54,536,201

Selling  Expenses

3,339,168

4,027,931

6,825,607

Administrative  Expenses

6,124,652

5,988,678

5,317,696

 

Total Expenses             

 

45,373,962

 

50,793,420

 

66,679,504

 

 

 

 

Profit  before  Financial Cost

  &  Income  Tax

 

950,402

 

1,747,716

 

5,069,592

Financial Cost

-

[164,856]

[113,297]

Income  Tax

[203,561]

[364,058]

[1,248,096]

 

 

 

 

Net  Profit / [Loss]

746,841

1,218,802

3,708,199

 

 

FINANCIAL ANALYSIS

 

ITEM

UNIT

2014

2013

2012

 

 

 

 

 

LIQUIDITY RATIO

 

 

 

 

CURRENT RATIO

TIMES

2.30

1.68

2.06

QUICK RATIO

TIMES

2.30

1.68

2.06

 

 

 

 

 

ACTIVITY RATIO

 

 

 

 

FIXED ASSETS TURNOVER

TIMES

327.00

374.90

399.50

TOTAL ASSETS TURNOVER

TIMES

3.29

2.97

6.17

INVENTORY CONVERSION PERIOD

DAYS

0.11

-

-

INVENTORY TURNOVER

TIMES

3,325.01

-

-

RECEIVABLES CONVERSION PERIOD

DAYS

30.24

59.35

23.97

RECEIVABLES TURNOVER

TIMES

12.07

6.15

15.23

PAYABLES CONVERSION PERIOD

DAYS

32.95

44.78

12.63

CASH CONVERSION CYCLE

DAYS

(2.60)

14.56

11.34

 

 

 

 

 

PROFITABILITY RATIO

 

 

 

 

COST OF GOODS SOLD

%

77.68

77.61

76.11

SELLING & ADMINISTRATION

%

20.47

19.07

16.95

INTEREST

%

-

0.31

0.16

GROSS PROFIT MARGIN

%

22.53

22.39

24.02

NET PROFIT MARGIN BEFORE EX. ITEM

%

2.06

3.33

7.07

NET PROFIT MARGIN

%

1.62

2.32

5.17

RETURN ON EQUITY

%

9.29

16.72

61.08

RETURN ON ASSET

%

5.32

6.89

31.93

EARNING PER SHARE

BAHT

24.89

40.63

123.61

 

 

 

 

 

LEVERAGE RATIO

 

 

 

 

DEBT RATIO

TIMES

0.43

0.59

0.48

DEBT TO EQUITY RATIO

TIMES

0.75

1.43

0.91

TIME INTEREST EARNED

TIMES

-

10.60

44.75

 

 

 

 

 

ANNUAL GROWTH

 

 

 

 

SALES GROWTH

%

(12.01)

(26.68)

 

OPERATING PROFIT

%

(45.62)

(65.53)

 

NET PROFIT

%

(38.72)

(67.13)

 

FIXED ASSETS

%

0.88

(21.87)

 

TOTAL ASSETS

%

(20.64)

52.38

 

 

 

 

ANNUAL GROWTH: RISKY

 

An annual sales growth is -12.01%. Turnover has decreased from THB 52,537,669.00 in 2013 to THB 46,227,941.00 in 2014. While net profit has decreased from THB 1,218,802.00 in 2013 to THB 746,841.00 in 2014. And total assets has decreased from THB 17,696,293.00 in 2013 to THB 14,043,911.00 in 2014.               

                       

PROFITABILITY : EXCELLENT

 

 

PROFITABILITY RATIO

 

Gross Profit Margin

22.53

Impressive

Industrial Average

7.01

Net Profit Margin

1.62

Impressive

Industrial Average

0.71

Return on Assets

5.32

Impressive

Industrial Average

1.08

Return on Equity

9.29

Impressive

Industrial Average

2.02

 

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 22.53%. 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 1.62%, 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 5.32%, 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 9.29%, 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 : EXCELLENT

 

 

LIQUIDITY RATIO

 

Current Ratio

2.30

Impressive

Industrial Average

1.07

Quick Ratio

2.30

 

 

  

Cash Conversion Cycle

(2.60)

 

 

 

 

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 2.3 times in 2014, increased from 1.68 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 2.3 times in 2014, increased from 1.68 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 -3 days.

 

Trend of the average competitors in the same industry for last 5 years

Current Ratio                 Downtrend

 

LEVERAGE : EXCELLENT

 

 

LEVERAGE RATIO

 

Debt Ratio

0.43

Impressive

Industrial Average

0.49

Debt to Equity Ratio

0.75

Impressive

Industrial Average

0.93

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 0.43 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                Stable

 

ACTIVITY: EXCELLENT

 

 

ACTIVITY RATIO

 

Fixed Assets Turnover

327.00

Impressive

Industrial Average

-

Total Assets Turnover

3.29

Impressive

Industrial Average

1.17

Inventory Conversion Period

0.11

 

 

 

Inventory Turnover

3,325.01

Impressive

Industrial Average

3.37

Receivables Conversion Period

30.24

 

 

 

Receivables Turnover

12.07

Impressive

Industrial Average

3.88

Payables Conversion Period

32.95

 

 

 

 

The company's Account Receivable Ratio is calculated as 12.07 and 6.15 in 2014 and 2013 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 2014 increased from 2013. 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. Inventory turnover has increased from 0 times in year 2013 to 3325.01 times in year 2014.

 

The company's Total Asset Turnover is calculated as 3.29 times and 2.97 times in 2014 and 2013 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                Downtrend

Inventory Turnover                     Downtrend

Receivables Turnover                Uptrend

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.63.18

UK Pound

1

Rs.98.85

Euro

1

Rs.77.42

 

INFORMATION DETAILS

 

Analysis Done by :

SUM

 

 

Report Prepared by :

NIT

 

               

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.