MIRA
INFORM REPORT
|
Report Date : |
27.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
S & R FOOT WEAR CO., LTD. |
|
|
|
|
Registered Office : |
82, 84 Soi Sawatdikarn 1 Road, Nongkaem, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
1995 |
|
|
|
|
Com. Reg. No.: |
0105538025801 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged
in contracted manufacturing and
exporting various designs
of leather footwear
for ladies, according
to customer’s brands. |
|
|
|
|
No. of Employees : |
200 |
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, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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 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
S & R FOOT
WEAR CO., LTD.
SUMMARY
BUSINESS ADDRESS : 82, 84 SOI SAWATDIKARN
1 ROAD,
NONGKAEM, BANGKOK
10160, THAILAND
TELEPHONE : [66] 2807-8006,
2444-0760-1
FAX : [66] 2807-8368,
2444-2969
E-MAIL ADDRESS : summamit@ksc.th.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1995
REGISTRATION NO. : 0105538025801
TAX ID NO. : 3011544754
CAPITAL REGISTERED : BHT.
1,000,000
CAPITAL PAID-UP : BHT.
1,000,000
SHAREHOLDER’S PROPORTION : THAI
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE
: MR. SUCHART SUMMAMIT,
THAI
MANAGING DIRECTOR
NO. OF STAFF : 200
LINES OF BUSINESS : LEATHER FOOTWEAR
CONTRACTED MANUFACTURER
AND EXPORTER
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 February
27, 1995 as
a private limited
company under the
registered name S & R
FOOT WEAR CO.,
LTD., by Mr. Suchart
Summamit and Thais
investors, with the
business objective to
provide contract manufacturing
various design of
leather footwear. It currently
employs approximately 200
staff.
The subject’s registered
address was initially
located at 6/153
Moo 3, Liebklong
Pasicharoenfangnua Road, Nongkaem,
Bangkok 10160.
On February 8, 2010,
the subject’s registered address
was relocated to 82,
84 Sawatdikarn 1
Road, Nongkaem, Bangkok
10160, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Suchart Summamit |
|
Thai |
63 |
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Suchart Summamit is
the Managing Director.
He is Thai
nationality with the
age of 63
years old.
Mr. Prawit Summamit is
the Factory Manager.
He is Thai
nationality.
Ms. Nuchanart Chotchungniran is
the Accounting Manager.
She is Thai
nationality.
Ms. Rawadee
Dachachaisakulwong is the
Finance Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in contracted
manufacturing and exporting
various designs of
leather footwear for
ladies, according to
customer’s brands.
PURCHASE
Raw materials and
components are purchased
from suppliers both
domestic and overseas,
mainly in France,
U.K., Germany, Hong
Kong and Republic
of China.
EXPORT
100% of the
products is exported
to France, United Kingdom, Italy,
Germany, Australia, Spain
and Sweden.
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
according for the
past two years.
CREDIT
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
D/A & T/T.
Exports are against
L/C at sight
& T/T.
BANKING
Kasikornbank Public Co.,
Ltd.
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject employs
approximately 200 staff.
LOCATION DETAILS
The premise is
owned for administrative office
and factory I
at the heading
address. Premise is
located in commercial/residential area.
Factory II is
located at 293
Moo 9, T. Nonglu, A. Sangklaburi, Kanchanaburi
71240.
Factory III is
located at 365
Moo 9, T. Nonglu, A. Sangklaburi, Kanchanaburi
71240.
COMMENT
The subject’s sales
revenue and net
profit in 2012
were increased comparing
to the same period of 2011,
this was mainly
due to an
increase in demand
of the products
from overseas markets.
Moreover, market of
shoes in 2013
was promising with
an increase in
number of orders, as
well as in
2014 shoes consumption in world
market is optimistic from
economy improvement.
FINANCIAL INFORMATION
The capital was
registered at Bht.
1,000,000 divided into
10,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
[as at April
30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Suchart Summamit Nationality: Thai Address : 6/153
Moo 3, Liebklong
Pasicharoenfangnua Road, Nongkaem, Bangkok |
9,994 |
99.94 |
|
Ms. Rawadee Dachachaisakulwong Nationality: Thai Address : 6/153
Moo 3, Liebklong
Pasicharoenfangnua Road, Nongkaem, Bangkok |
1 |
0.01 |
|
Ms. Chitra Summamit Nationality: Thai Address :
254/11 Charansanitwong Road,
Bangchanglor, Bangkoknoi, Bangkok |
1 |
0.01 |
|
Mr. Wiset Kajorndejdamrong Nationality: Thai Address : 40/1202
Moo 9, Bangbon,
Bangkok |
1 |
0.01 |
|
Mr. Kasin Dachachaisakulwong Nationality: Thai Address : 128/48
Moo 6, T. Klongyong, A.
Budhamonthon, Nakornpathom |
1 |
0.01 |
|
Mrs. Thanomwan
Dachachaisakulwong Nationality: Thai Address : 128/48
Moo 6, T. Klongyong, A.
Budhamonthon, Nakornpathom |
1 |
0.01 |
|
Mr. Prawit Summamit Nationality: Thai Address : 6/156
Moo 3, Liebklong
Pasicharoenfangnua Road, Nongkaem, Bangkok |
1 |
0.01 |
Total Shareholders : 7
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
10,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
10,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Mr. Thanaphan Kotirat No.
1588
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2012,
2011 & 2010
were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
3,158,013.28 |
603,592.72 |
3,061,125.94 |
|
Trade Accounts &
Other Receivable |
9,659,538.27 |
17,402,756.87 |
35,210,721.07 |
|
Inventories |
13,446,836.24 |
20,171,577.40 |
25,186,431.42 |
|
Other Current Assets
|
1,291,089.72 |
1,803,381.34 |
2,552,401.29 |
|
|
|
|
|
|
Total Current Assets
|
27,555,477.51 |
39,981,308.33 |
66,010,679.72 |
|
|
|
|
|
|
Fixed Assets |
15,745,255.56 |
17,879,109.92 |
13,979,658.10 |
|
Other Non-current Assets |
70,380.08 |
70,380.08 |
70,380.08 |
|
Total Assets |
43,371,113.15 |
57,930,798.33 |
80,060,717.90 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
132,995.00 |
2,891,907.94 |
216,508.22 |
|
Trade Accounts & Other Payable |
8,237,774.63 |
8,933,338.38 |
40,258,029.04 |
|
Current Portion of Long-term Liabilities |
- |
1,168,598.16 |
- |
|
Short-term Loans |
7,058,381.92 |
23,720,501.07 |
20,484,854.82 |
|
Accrued Income Tax |
16,348.35 |
12,671.64 |
31,331.31 |
|
Other Current Liabilities |
75,509.95 |
310,107.25 |
157,298.25 |
|
|
|
|
|
|
Total Current Liabilities |
15,521,009.85 |
37,037,124.44 |
61,148,021.64 |
|
Total Liabilities |
15,521,009.85 |
37,037,124.44 |
61,148,021.64 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 10,000 shares |
1,000,000.00 |
1,000,000.00 |
1,000,000.00 |
|
|
|
|
|
|
Capital Paid |
1,000,000.00 |
1,000,000.00 |
1,000,000.00 |
|
Retained Earning - Unappropriated |
26,850,103.30 |
19,893,673.89 |
17,912,696.26 |
|
Total Shareholders' Equity |
27,850,103.30 |
20,893,673.89 |
18,912,696.26 |
|
Total Liabilities &
Shareholders' Equity |
43,371,113.15 |
57,930,798.33 |
80,060,717.90 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
274,837,915.42 |
186,811,017.92 |
284,541,332.27 |
|
Other Income |
235,393.07 |
2,378,682.65 |
274,966.15 |
|
Total Revenues |
275,073,308.49 |
189,189,700.57 |
284,816,298.42 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
254,986,534.77 |
176,427,765.39 |
267,565,013.63 |
|
Selling Expenses |
1,553,181.81 |
1,597,471.34 |
1,636,131.39 |
|
Administrative Expenses |
8,671,477.09 |
7,932,535.53 |
6,542,723.70 |
|
Total Expenses |
265,211,193.67 |
185,957,772.26 |
275,743,868.72 |
|
|
|
|
|
|
Profit before Financial
Cost & Income Tax |
9,862,114.82 |
3,231,928.31 |
9,072,429.70 |
|
Financial Cost |
[564,524.51] |
[629,042.88] |
[1,065,736.88] |
|
Profit before Income Tax |
9,297,590.31 |
2,602,885.43 |
8,006,692.82 |
|
Income Tax |
[2,341,160.90] |
[621,907.80] |
[2,204,169.47] |
|
Net Profit / [Loss] |
6,956,429.41 |
1,980,977.63 |
5,802,523.35 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.78 |
1.08 |
1.08 |
|
QUICK RATIO |
TIMES |
0.83 |
0.49 |
0.63 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
17.46 |
10.45 |
20.35 |
|
TOTAL ASSETS TURNOVER |
TIMES |
6.34 |
3.22 |
3.55 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
19.25 |
41.73 |
34.36 |
|
INVENTORY TURNOVER |
TIMES |
18.96 |
8.75 |
10.62 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
12.83 |
34.00 |
45.17 |
|
RECEIVABLES TURNOVER |
TIMES |
28.45 |
10.73 |
8.08 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
11.79 |
18.48 |
54.92 |
|
CASH CONVERSION CYCLE |
DAYS |
20.28 |
57.25 |
24.61 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
92.78 |
94.44 |
94.03 |
|
SELLING & ADMINISTRATION |
% |
3.72 |
5.10 |
2.87 |
|
INTEREST |
% |
0.21 |
0.34 |
0.37 |
|
GROSS PROFIT MARGIN |
% |
7.31 |
6.83 |
6.06 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.59 |
1.73 |
3.19 |
|
NET PROFIT MARGIN |
% |
2.53 |
1.06 |
2.04 |
|
RETURN ON EQUITY |
% |
24.98 |
9.48 |
30.68 |
|
RETURN ON ASSET |
% |
16.04 |
3.42 |
7.25 |
|
EARNING PER SHARE |
BAHT |
695.64 |
198.10 |
580.25 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.36 |
0.64 |
0.76 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.56 |
1.77 |
3.23 |
|
TIME INTEREST EARNED |
TIMES |
17.47 |
5.14 |
8.51 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
47.12 |
(34.35) |
|
|
OPERATING PROFIT |
% |
205.15 |
(64.38) |
|
|
NET PROFIT |
% |
251.16 |
(65.86) |
|
|
FIXED ASSETS |
% |
(11.93) |
27.89 |
|
|
TOTAL ASSETS |
% |
(25.13) |
(27.64) |
|
ANNUAL GROWTH : SATISFACTORY
An annual sales growth is 47.12%. Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
7.31 |
Deteriorated |
Industrial Average |
36.97 |
|
Net Profit Margin |
2.53 |
Impressive |
Industrial Average |
0.77 |
|
Return on Assets |
16.04 |
Impressive |
Industrial Average |
1.45 |
|
Return on Equity |
24.98 |
Impressive |
Industrial Average |
2.77 |
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 7.31%. 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 2.53%, 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
16.04%, 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 24.98%, 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 :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.78 |
Impressive |
Industrial Average |
1.47 |
|
Quick Ratio |
0.83 |
|
|
|
|
Cash Conversion Cycle |
20.28 |
|
|
|
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 1.78 times in 2012, increased from 1.08 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 0.83 times in 2012,
increased from 0.49 times, by excluding inventory, the company may have
problems meeting current liabilities.
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 21 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.36 |
Impressive |
Industrial Average |
0.50 |
|
Debt to Equity Ratio |
0.56 |
Impressive |
Industrial Average |
0.99 |
|
Times Interest Earned |
17.47 |
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 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 17.47 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 0.36 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 Stable
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
17.46 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
6.34 |
Impressive |
Industrial Average |
1.89 |
|
Inventory Conversion Period |
19.25 |
|
|
|
|
Inventory Turnover |
18.96 |
Impressive |
Industrial Average |
5.41 |
|
Receivables Conversion Period |
12.83 |
|
|
|
|
Receivables Turnover |
28.45 |
Impressive |
Industrial Average |
4.89 |
|
Payables Conversion Period |
11.79 |
|
|
|
The company's Account Receivable Ratio is calculated as 28.45 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 42 days at the
end of 2011 to 19 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 8.75 times in year 2011 to 18.96
times in year 2012.
The company's Total Asset Turnover is calculated as 6.34 times and 3.22
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 Stable
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.94 |
|
|
1 |
Rs.103.31 |
|
Euro |
1 |
Rs.85.11 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.