MIRA INFORM REPORT
|
Report Date : |
10.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
V.S.K. MACHINERY CO., LTD. |
|
|
|
|
Registered Office : |
83, 85 Chalaemnimit Road,
Bangklo, Bangkorlaem,
Bangkok 10120, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
20.09.1988 |
|
|
|
|
Com. Reg. No.: |
0105531074653 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is
engaged in importing
and distributing various kinds
of industrial machinery & equipment, as
well as hardware products, such
as drilling, bearing
and cutting tools
for general industries. |
|
|
|
|
No. of Employees : |
08 |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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
V.S.K. MACHINERY
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 83, 85 CHALAEMNIMIT
ROAD, BANGKLO,
BANGKORLAEM, BANGKOK
10120, THAILAND
TELEPHONE : [66] 2291-9529-31
FAX :
[66] 2291-9533
E-MAIL
ADDRESS : vsk-machinery@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1988
REGISTRATION
NO. : 0105531074653
TAX
ID NO. : 3101574319
CAPITAL REGISTERED : BHT. 3,360,000
CAPITAL PAID-UP : BHT.
3,360,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. VIROJ IAMSINWATTANA, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 8
LINES
OF BUSINESS : INDUSTRIAL MACHINERY,
HARDWARE
AND TOOLS
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 September 20, 1988 as
a private limited
company under the
registered name V.S.K. MACHINERY CO.,
LTD., by Thai groups,
with the business
objective to import
and distribute industrial
machinery, hardware and
tools to domestic
market. It currently
employs 8 staff.
The
subject’s registered address
was initially at 40/3 Soi
Chula 9, Rama 4 Road,
Wangmai, Pathumwan, Bangkok 10330.
On
November 4, 2013, the
subject’s registered address
was relocated to 83, 85
Chalaemnimit Road, Bangklo,
Bangkorlaem, Bangkok 10120,
and this is
the subject’s current
operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Viroj Iamsinwattana |
|
Thai |
64 |
|
Mr. Pichai Udomthanasakul |
|
Thai |
63 |
AUTHORIZED PERSON
Both of the
above directors can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Viroj Iamsinwattana is
the Managing Director.
He is Thai
nationality with the
age of 64
years old.
Mr. Pichai Udomthanasakul is
the Marketing Manager.
He is Thai
nationality with the
age of 63
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing various
kinds of industrial
machinery & equipment,
as well as
hardware products, such as
drilling, bearing and
cutting tools for
general industries.
MAJOR BRANDS
“NSK”, “BOSCH”
and etc.
PURCHASE
The
products are purchased
from suppliers both
domestic and overseas,
mainly in Republic
of China, Taiwan,
Japan and Germany.
SALES
100% of the
products is sold
locally to wholesalers,
retailers and end-users.
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
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
Krung
Thai Bank Public
Co., Ltd.
EMPLOYMENT
The
subject currently employs
8 staff.
LOCATION
DETAILS
The
premise is owned for administrative office
and showroom at
the heading address.
Premise is located
in commercial/residential area.
COMMENT
The
subject’s sales revenue in
2012 was moderate
comparing to the
previous year, this
was resulted from
economy improved in
the year 2011.
However,
current economy sluggish
has resulted to
slow consumption of industrial
products, but there is
potential of the products in
long term prospect.
FINANCIAL INFORMATION
The
capital was registered at
Bht. 3,000,000 divided into 30,000 shares of
Bht. 100 each with
fully paid.
On
August 23, 2002,
the registered capital
was increased to
Bht. 3,360,000 divided
into 33,600 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Viroj Iamsinwattana Nationality: Thai Address : 1300/43-46
Sukhumvit 50 Road,
Prakanong, Klongtoey, Bangkok
|
8,180 |
24.34 |
|
Mr. Amorn Apichacharoenwong Nationality: Thai Address : 454, 456
Charoenkrung 67 Road,
Yannawa, Sathorn, Bangkok
|
6,921 |
20.60 |
|
Mr. Yuthong Thianthanyukij Nationality: Thai Address : 341
Soi Chula 22,
Charoenmuang Road,
Wangmai, Pathumwan, Bangkok |
6,921 |
20.60 |
|
Mr. Arnond Wongsutthilert Nationality: Thai Address : 183/8
Petchburi Road, Phayathai,
Phayathai, Bangkok |
4,404 |
13.11 |
|
Mr. Kovit Saetae Nationality: Thai Address : 179
Moo 4, Bannongsad
Road, T.
Nongkrok, A. Muang, Srisaket
|
3,901 |
11.61 |
|
Mr. Pichai Udomthanakul Nationality: Thai Address : 1215/6
Taksin Road, Bukkalo, Thonburi, Bangkok |
3,273 |
9.74 |
Total Shareholders : 6
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
33,600 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
6 |
33,600 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Prasart Bangsudjai No.
2467
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 |
343,980.57 |
834,048.57 |
462,352.19 |
|
Trade Accounts Receivable |
8,005,001.70 |
2,480,381.03 |
1,162,541.02 |
|
Inventories |
24,838,491.04 |
30,433,797.28 |
21,777,097.30 |
|
Other Current Assets
|
284,748.29 |
554,727.43 |
339,347.71 |
|
|
|
|
|
|
Total Current Assets
|
33,472,221.60 |
34,302,954.31 |
23,741,338.22 |
|
|
|
|
|
|
Fixed Assets |
1,052,120.15 |
1,405,928.25 |
157,505.87 |
|
Other Non-current Assets |
201,258.54 |
183,928.51 |
- |
|
Total Assets |
34,725,600.29 |
35,892,811.07 |
23,898,844.09 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable |
22,700,652.08 |
12,091,486.99 |
7,383,195.59 |
|
Short-term Loans |
276,012.00 |
276,012.00 |
110,776.48 |
|
Other Current Liabilities |
290,974.23 |
194,112.09 |
- |
|
|
|
|
|
|
Total Current Liabilities |
23,267,638.31 |
12,561,611.08 |
7,493,972.07 |
|
|
|
|
|
|
Long-term Payable |
598,026.00 |
874,038.00 |
- |
|
Long-term Loans from Person
or Related Company |
- |
12,600,000.00 |
7,500,000.00 |
|
Total Liabilities |
23,865,664.31 |
26,035,649.08 |
14,993,972.07 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 33,600 shares |
3,360,000.00 |
3,360,000.00 |
3,360,000.00 |
|
|
|
|
|
|
Capital Paid |
3,360,000.00 |
3,360,000.00 |
3,360,000.00 |
|
Retained Earning - Unappropriated |
7,499,935.98 |
6,497,161.99 |
5,544,872.02 |
|
Total Shareholders' Equity |
10,859,935.98 |
9,857,161.99 |
5,724,241.52 |
|
Total Liabilities &
Shareholders' Equity |
34,725,600.29 |
35,892,811.07 |
23,898,844.09 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
64,236,547.70 |
44,201911.69 |
33,091,122.32 |
|
Gain on Exchange Rate |
616,209.63 |
54,302.87 |
192,335.67 |
|
Total Revenues |
64,852,757.33 |
44,256,214.56 |
33,283,457.99 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
57,554,135.92 |
37,261,449.58 |
28,298,352.39 |
|
Administrative Expenses |
5,947,274.85 |
5,840,060.42 |
4,321,488.39 |
|
Total Expenses |
63,501,410.77 |
43,101,510.00 |
32,619,840.78 |
|
Profit before Income Tax |
1,351,346.56 |
1,154,704.56 |
663,617.21 |
|
Income Tax |
[348,572.57] |
[202,414.59] |
[86,873.03] |
|
Net Profit / [Loss] |
1,002,773.99 |
952,289.97 |
576,744.18 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.44 |
2.73 |
3.17 |
|
QUICK RATIO |
TIMES |
0.36 |
0.26 |
0.22 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
61.05 |
31.44 |
210.09 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.85 |
1.23 |
1.38 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
157.52 |
298.12 |
280.89 |
|
INVENTORY TURNOVER |
TIMES |
2.32 |
1.22 |
1.30 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
45.49 |
20.48 |
12.82 |
|
RECEIVABLES TURNOVER |
TIMES |
8.02 |
17.82 |
28.46 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
143.96 |
118.44 |
95.23 |
|
CASH CONVERSION CYCLE |
DAYS |
59.04 |
200.16 |
198.48 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
89.60 |
84.30 |
85.52 |
|
SELLING & ADMINISTRATION |
% |
9.26 |
13.21 |
13.06 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
11.36 |
15.82 |
15.06 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.10 |
2.61 |
2.01 |
|
NET PROFIT MARGIN |
% |
1.56 |
2.15 |
1.74 |
|
RETURN ON EQUITY |
% |
9.23 |
9.66 |
6.48 |
|
RETURN ON ASSET |
% |
2.89 |
2.65 |
2.41 |
|
EARNING PER SHARE |
BAHT |
29.84 |
28.34 |
17.17 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.69 |
0.73 |
0.63 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.20 |
2.64 |
1.68 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
45.33 |
33.58 |
|
|
OPERATING PROFIT |
% |
17.03 |
74.00 |
|
|
NET PROFIT |
% |
5.30 |
65.11 |
|
|
FIXED ASSETS |
% |
(25.17) |
792.62 |
|
|
TOTAL ASSETS |
% |
(3.25) |
50.19 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 45.33%. Turnover has increased from THB
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.36 |
Deteriorated |
Industrial
Average |
30.86 |
|
Net Profit Margin |
1.56 |
Acceptable |
Industrial
Average |
2.89 |
|
Return on Assets |
2.89 |
Acceptable |
Industrial
Average |
5.19 |
|
Return on Equity |
9.23 |
Acceptable |
Industrial
Average |
12.33 |
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 11.36%. 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 1.56%.
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 2.89%.
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 9.23%.
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 |
1.44 |
Satisfactory |
Industrial
Average |
1.67 |
|
Quick Ratio |
0.36 |
|
|
|
|
Cash Conversion Cycle |
59.04 |
|
|
|
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 1.44 times in 2012, decreased from 2.73 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 0.36 times in 2012,
increased from 0.26 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 60 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.69 |
Acceptable |
Industrial
Average |
0.57 |
|
Debt to Equity Ratio |
2.20 |
Risky |
Industrial
Average |
1.32 |
|
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 higher the percentage means that the company is using less
equity and has stronger leverage position.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.69 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 |
61.05 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.85 |
Impressive |
Industrial
Average |
1.80 |
|
Inventory Conversion Period |
157.52 |
|
|
|
|
Inventory Turnover |
2.32 |
Acceptable |
Industrial
Average |
3.44 |
|
Receivables Conversion Period |
45.49 |
|
|
|
|
Receivables Turnover |
8.02 |
Impressive |
Industrial
Average |
4.49 |
|
Payables Conversion Period |
143.96 |
|
|
|
The company's Account Receivable Ratio is calculated as 8.02 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 298 days at the
end of 2011 to 158 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 1.22 times in year 2011 to 2.32 times
in year 2012.
The company's Total Asset Turnover is calculated as 1.85 times and 1.23
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.60.05 |
|
|
1 |
Rs.101.65 |
|
Euro |
1 |
Rs.83.07 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NIS |
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.