MIRA INFORM REPORT
|
Report Date : |
25.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
AVALON NUTRIMART
COMPANY LIMITED |
|
|
|
|
Registered Office : |
7/3
Soi Sawanvithi, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Year of Establishment : |
1999 |
|
|
|
|
Com. Reg. No.: |
0105542021327 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Engaged in importing and distributing chemicals for pharmaceutical and
cosmetic industries. |
|
|
|
|
No of Employees : |
10 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow But Correct |
|
|
|
|
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
AVALON NUTRIMART
COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 7/3
SOI SAWANVITHI, SUTHISARN
ROAD,
HUAYKWANG, BANGKOK
10320, THAILAND
TELEPHONE : [66] 2274-7588,
2274-7768, 089 117-9551
FAX :
[66] 2274-7591
E-MAIL
ADDRESS : arjnarongch@hotmail.com
REGISTRATION
ADDRESS : 119/318 MOO 3,
SOI
KUBON ROAD, THARAENG, BANGKHEN,
BANGKOK 10220,
THAILAND
ESTABLISHED
: 1999
REGISTRATION
NO. : 0105542021327
TAX
ID NO. : 3021038939
CAPITAL REGISTERED : BHT. 5,000,000
CAPITAL PAID-UP : BHT.
5,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
ARJ-NARONG CHANTRANUKUL, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 10
LINES
OF BUSINESS : CHEMICALS IMPORTER AND
DISTRIBUTOR
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 March 24,
1999 as a
private limited company
under the name
style AVALON NUTRIMART
COMPANY LIMITED by
Thai groups, with
the business objective
to import and
distribute chemicals for
pharmaceutical and cosmetic industries
in domestic market.
It currently employs
10 staff.
The
subject’s registered address
is 119/318 Moo 3,
Soi Siam Thanee,
Kubon Rd., Tharaeng,
Bangkhen, Bangkok 10220,
while the subject’s current
operation address is at
7/3 Soi
Sawanvithi, Suthisarn Rd.,
Huaykwang, Bangkok 10320.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Arj-narong Chantranukul |
|
Thai |
48 |
|
Mrs. Sawong Charuvijit |
|
Thai |
71 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Arj-narong Chantranukul is
the Managing Director.
He is Thai
nationality with the
age of 48
years old.
BUSINESS OPERATIONS
The subject is engaged
in importing and
distributing chemicals for
pharmaceutical and cosmetic
industries.
IMPORT
80%
of the products
is imported from
United States of
America, Sweden, Italy,
U.K., India, Taiwan, Republic of
China, Japan and Spain, the
remaining 20% is
purchased from local suppliers.
MAJOR SUPPLIERS
Unimart
Remedies Ltd. : India
Guangxi
Kingkey Share Corporation : Republic
of China
SALES
100% of the
products is sold
locally by wholesale
to dealers and
manufacturers.
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 to IRICO’S
DATABASE 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.
Imports are by
L/C at sight
or T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Ratchada-Huaykwang Branch : Ratchadapisek
Rd., Huaykang, Bangkok]
EMPLOYMENT
The
subject employs approximately
10 staff. [office
and sales staff]
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$ 100,000.
COMMENT
The subject’s sales
in 2012 was
reported slowdown from
the previous year.
Industrial downturn has
resulted to slow
consumption of chemical,
a raw material
for production.
Growth
is predicted to
be at slow
pace due to
overall economic slowdown
including industrial sector.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 1,000,000 divided into
10,000 shares of
Bht. 100 each
The
capital was increased
later as followed:
Bht. 3,000,000
on May 23,
2008
Bht. 5,000,000
on March 23,
2009
The
latest registered capital
was increased to
Bht. 5,000,000 divided
into Bht. 50,000
shares of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Arj-narong Chantranukul Nationality: Thai Address : 119/318
Moo 3, Soi Siam
Thanee, Kubon
Rd., Tharaeng, Bangkhen, Bangkok
|
49,996 |
99.96 |
|
Ms. Prim Uthitanont Nationality: Thai Address : 22/4
Rama 6 Rd., Samsennai,
Phyathai, Bangkok |
1 |
0.01 |
|
Mrs. Mettha Amartayakul Nationality: Thai Address : 44
Soi 20 June 11, Yaek 15,
Samsennok,
Huaykwang, Bangkok |
1 |
0.01 |
|
Mrs. Sawong Charuvijit Nationality: Thai Address : 13 Soi
20 June 11, Yaek 15,
Samsennok,
Huaykwang, Bangkok |
1 |
0.01 |
|
Mr. Palin Suwakon Nationality: Thai Address : 13 Soi
20 June 11, Yaek 15,
Samsennok,
Huaykwang, Bangkok |
1 |
0.01 |
Total Shareholders : 5
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
50,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
5 |
50,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Ms. Yuwamon Malai No.
8426
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 |
6,635,582.76 |
4,932,569.98 |
4,712,260.75 |
|
Trade Accounts &
Other Receivable |
41,995,709.47 |
43,321,097.69 |
34,603,077.47 |
|
Inventories |
22,792,905.57 |
20,845,959.72 |
14,832,161.27 |
|
Other Current Assets
|
176,836.77 |
85,738.00 |
56,401.58 |
|
Total Current Assets
|
71,601,034.57 |
69,185,365.39 |
54,203,901.07 |
|
|
|
|
|
|
Long-term Lending to Related Person |
1,744,984.36 |
3,435,513.96 |
9,042,465.01 |
|
Fixed Assets |
1,558,214.23 |
1,124,971.73 |
1,471,257.83 |
|
Other Non-current Assets |
2,258,845.59 |
2,111,974.83 |
2,105,462.48 |
|
Total Assets |
77,163,078.75 |
75,857,825.91 |
66,823,086.39 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan
from Financial Institution |
43,778,290.00 |
29,631,567.19 |
39,345,419.39 |
|
Trade Accounts & Other Payable |
27,407,434.08 |
37,548,799.67 |
19,739,662.79 |
|
Accrued Income Tax |
- |
- |
227,576.91 |
|
Other Current Liabilities |
7,483.18 |
155,119.63 |
11,359.37 |
|
Total Current Liabilities |
71,193,207.26 |
67,335,486.49 |
59,324,018.46 |
|
Total Liabilities |
71,193,207.26 |
67,335,486.49 |
59,324,018.46 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized,
issued and fully
paid share
capital 50,000 shares
|
5,000,000.00 |
5,000,000.00 |
5,000,000.00 |
|
Capital Paid |
5,000,000.00 |
5,000,000.00 |
5,000,000.00 |
|
Retained Earning -
Unappropriated |
969,871.49 |
3,522,339.42 |
2,499,067.93 |
|
Total Shareholders' Equity |
5,969,871.49 |
8,522,339.42 |
7,499,067.93 |
|
Total Liabilities &
Shareholders' Equity |
77,163,078.75 |
75,857,825.91 |
66,823,086.39 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
147,564,301.50 |
160,146,979.00 |
112,408,587.50 |
|
Other Income |
766,975.57 |
1,713,248.02 |
1,374,463.75 |
|
Total Revenues |
148,331,277.07 |
161,860,227.02 |
113,783,051.25 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
139,888,952.65 |
151,728,127.21 |
103,676,043.47 |
|
Selling &
Administrative Expenses |
8,110,670.25 |
6,375,648.88 |
5,327,836.08 |
|
Total Expenses |
147,999,622.90 |
158,103,776.09 |
109,003,879.55 |
|
Profit before Financial
Cost & Income Tax |
331,654.17 |
3,756,450.93 |
4,779,171.70 |
|
Financial Cost |
[2,884,122.10] |
[2,552,341.55] |
[2,212,507.59] |
|
|
|
|
|
|
Profit before Income
Tax |
[2,552,467.93] |
1,204,109.38 |
2,566,664.11 |
|
Income Tax |
- |
[180,837.90] |
[297,326.91] |
|
Net Profit / [Loss] |
[2,552,467.93] |
1,023,271.48 |
2,269,337.20 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.01 |
1.03 |
0.91 |
|
QUICK RATIO |
TIMES |
0.68 |
0.72 |
0.66 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
94.70 |
142.36 |
76.40 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.91 |
2.11 |
1.68 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
59.47 |
50.15 |
52.22 |
|
INVENTORY TURNOVER |
TIMES |
6.14 |
7.28 |
6.99 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
103.88 |
98.74 |
112.36 |
|
RECEIVABLES TURNOVER |
TIMES |
3.51 |
3.70 |
3.25 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
71.51 |
90.33 |
69.50 |
|
CASH CONVERSION CYCLE |
DAYS |
91.84 |
58.55 |
95.08 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
94.80 |
94.74 |
92.23 |
|
SELLING & ADMINISTRATION |
% |
5.50 |
3.98 |
4.74 |
|
INTEREST |
% |
1.95 |
1.59 |
1.97 |
|
GROSS PROFIT MARGIN |
% |
5.72 |
6.33 |
8.99 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.22 |
2.35 |
4.25 |
|
NET PROFIT MARGIN |
% |
(1.73) |
0.64 |
2.02 |
|
RETURN ON EQUITY |
% |
(42.76) |
12.01 |
30.26 |
|
RETURN ON ASSET |
% |
(3.31) |
1.35 |
3.40 |
|
EARNING PER SHARE |
BAHT |
(51.05) |
20.47 |
45.39 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.92 |
0.89 |
0.89 |
|
DEBT TO EQUITY RATIO |
TIMES |
11.93 |
7.90 |
7.91 |
|
TIME INTEREST EARNED |
TIMES |
0.11 |
1.47 |
2.16 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(7.86) |
42.47 |
|
|
OPERATING PROFIT |
% |
(91.17) |
(21.40) |
|
|
NET PROFIT |
% |
(349.44) |
(54.91) |
|
|
FIXED ASSETS |
% |
38.51 |
(23.54) |
|
|
TOTAL ASSETS |
% |
1.72 |
13.52 |
|
ANNUAL GROWTH : ACCEPTABLE
An annual sales growth is -7.86%. Turnover has decreased from THB
160,146,979.00 in 2011 to THB 147,564,301.50 in 2012. While net profit has decreased
from THB 1,023,271.48 in 2011 to THB -2,552,467.93 in 2012. And total assets
has increased from THB 75,857,825.91 in 2011 to THB 77,163,078.75 in 2012.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
5.72 |
Deteriorated |
Industrial Average |
107.80 |
|
Net Profit Margin |
(1.73) |
Deteriorated |
Industrial Average |
4.22 |
|
Return on Assets |
(3.31) |
Deteriorated |
Industrial Average |
6.89 |
|
Return on Equity |
(42.76) |
Deteriorated |
Industrial Average |
16.07 |
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 5.72%. 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 -1.73%.
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 -3.31%.
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 -42.76%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.01 |
Acceptable |
Industrial Average |
1.63 |
|
Quick Ratio |
0.68 |
|
|
|
|
Cash Conversion Cycle |
91.84 |
|
|
|
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 1.01 times in 2012, decrease from 1.03 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 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 0.68 times in 2012,
decrease from 0.72 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 92 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.92 |
Acceptable |
Industrial Average |
0.57 |
|
Debt to Equity Ratio |
11.93 |
Risky |
Industrial Average |
1.33 |
|
Times Interest Earned |
0.11 |
Risky |
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 0.12 lower than 1, so the company is not generating
enough cash from its EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.92 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 : EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
94.70 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.91 |
Impressive |
Industrial Average |
1.63 |
|
Inventory Conversion Period |
59.47 |
|
|
|
|
Inventory Turnover |
6.14 |
Impressive |
Industrial Average |
3.69 |
|
Receivables Conversion Period |
103.88 |
|
|
|
|
Receivables Turnover |
3.51 |
Impressive |
Industrial Average |
2.43 |
|
Payables Conversion Period |
71.51 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.51 and 3.70 in
2012 and 2011 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 2012
decreased from 2011. This would suggest the company had deteriorated 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. The inventory turnover in days has increased from 50 days at the
end of 2011 to 59 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 7.28 times in year 2011 to 6.14 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.91 times and 2.11
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. 62.17 |
|
|
1 |
Rs. 103.38 |
|
Euro |
1 |
Rs. 85.08 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
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.