MIRA INFORM REPORT
|
Report Date : |
16.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
KING MARBLE
AND GRANITE CO.,
LTD. |
|
|
|
|
Registered Office : |
89
Moo 5, T. Huaykrai, A. Maesai,
Chiangrai 57220 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
07.06.2001 |
|
|
|
|
Com. Reg. No.: |
0575544000251 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
engaged in
manufacturing and distributing various
kinds of marbles
and granite products,
as well as
importing and distributing of
marbles, granites, artificial
stones and other
stones for decoration
business. |
|
|
|
|
No of Employees : |
240
(Approximately) |
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 – 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 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 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.
|
Source : CIA |
Company
name
KING MARBLE AND
GRANITE CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 89
MOO 5, T. HUAYKRAI,
A. MAESAI,
CHIANGRAI 57220,
THAILAND
TELEPHONE : [66] 53
709-788, 083 152,1022,
086 430-0331
FAX :
[66] 53
709-503
E-MAIL
ADDRESS : kmb@kg.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2001
REGISTRATION
NO. : 0575544000251
TAX
ID NO. : 3531010524
CAPITAL REGISTERED : BHT. 4,000,000
CAPITAL PAID-UP : BHT.
4,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. ANUWAT MAKMASIN,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 240
LINES
OF BUSINESS : MARBLES AND
GRANITE PRODUCTS
MANUFACTURER 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 June 7,
2001 as a
private limited company
under the registered
name KING MARBLE
AND GRANITE CO.,
LTD., by Thai group, with
the business objective to
manufacture, import and
distribute marbles and
granite products to
domestic market. It
currently employs approximate
240 staff.
The subject’s registered
address is 89 Moo 5, T.
Huaykrai, A. Maesai, Chiangrai
57220, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Anuwat Makmasin |
|
Thai |
49 |
|
Ms. Orawan Saelee |
|
Thai |
47 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Anuwat Makmasin is
the Managing Director.
He is Thai
nationality with the
age of 49
years old.
BUSINESS
OPERATIONS
The subject
is engaged in
manufacturing and distributing
various kinds of
marbles and granite
products, as well
as importing and
distributing of marbles,
granites, artificial stones
and other stones
for decoration business.
PURCHASE
Raw
materials and equipment
are purchased from
local supplier, while
the products are
imported from India
and Republic of
China.
SALES
100% of the
products is sold
locally by wholesale
to traders, and
by retail to
end-users through the
subject’s showroom.
RELATED AND AFFILIATED
COMPANIES
King Ceramic Tile
Co., Ltd.
Business Type : Importer and
distributor of ceramic
sanitary products
King Lighter Industry
Co., Ltd.
Business Type :
Manufacturer and distributor
of matches and
cigarette lighters
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
The
subject was not
disclosed its banker’s
name.
EMPLOYMENT
The
subject currently employs
240 staff.
LOCATION
DETAILS
The
premise is owned for
administrative office and
factory at the
heading address. Premise
is located in
provincial
Branch/Showroom :
There are
3 branches and showrooms
as follows:
-
65 Moo 9, T.
Buapaktha, A. Banglane, Nakornpathom
73130
-
71 Moo 10, T.
Buapaktha, A. Banglane, Nakornpathom
73130
-
118 Moo 10, T.
Buapaktha, A. Banglane, Nakornpathom
73130
COMMENT
Slowdown
of construction industry
has affected construction
related business such
as construction materials
including marble and
granite. Subject posted
its strong growth
in the past several
years, but economic
uncertainty has slow
down its sales
in 2013-2014.
FINANCIAL
INFORMATION
The
capital was registered at
Bht. 4,000,000 divided into 1,000
shares of Bht. 4,000
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Anuwat Makmasin Nationality: Thai Address : 13
Moo 3, T. Maesai, A. Maesai,
Chiangrai |
600 |
60.00 |
|
Ms. Orawan Saelee Nationality: Thai Address : 13
Moo 3, T. Maesai, A. Maesai, Chiangrai |
370 |
37.00 |
|
Ms. Oranat Makmasin Nationality: Thai Address : 13
Moo 3, T. Maesai, A. Maesai,
Chiangrai |
10 |
1.00 |
|
Mr. Anirut Makmasin Nationality: Thai Address : 13
Moo 3, T. Maesai, A. Maesai,
Chiangrai |
10 |
1.00 |
|
Master Nattawut Makmasin Nationality: Thai Address : 13
Moo 3, T. Maesai, A. Maesai,
Chiangrai |
10 |
1.00 |
Total Shareholders : 5
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
1,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
5 |
1,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Vanichaya Sriratanapong No.
4406
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 |
509,132.23 |
346,005.39 |
138,332.24 |
|
Trade Accounts & Other Receivable |
4,437,746.85 |
20,495,144.26 |
7,669,906.42 |
|
Inventories |
45,902,785.26 |
30,742,609.47 |
22,387,111.71 |
|
Other Current Assets
|
1,173,773.43 |
786,790.56 |
1,018,330.37 |
|
|
|
|
|
|
Total Current Assets
|
52,023,437.77 |
52,370,549.68 |
31,213,680.74 |
|
|
|
|
|
|
Fixed Assets |
63,238,931.24 |
56,650,768.40 |
56,829,832.82 |
|
Other Non-current Assets |
185,477.58 |
223,177.58 |
113,177.58 |
|
Total Assets |
115,447,846.59 |
109,244,495.66 |
88,156,691.14 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft |
9,032,681.70 |
9,867,338.90 |
10,434,903.99 |
|
Short-term Loans from Bank |
6,046,575.85 |
4,800,000.00 |
- |
|
Trade Accounts & Other Payable |
12,918,243.94 |
28,050,455.71 |
12,852,755.49 |
|
Accrued Income Tax |
487,663.85 |
525,572.31 |
557,852.84 |
|
Other Current Liabilities |
580,720.32 |
568,383.08 |
526,141.95 |
|
|
|
|
|
|
Total Current Liabilities |
29,065,885.66 |
43,811,750.00 |
24,371,654.27 |
|
Hire-purchase |
6,477,446.60 |
7,239,205.19 |
4,658,445.56 |
|
Long-term Loans from
Related Person |
30,903,572.68 |
4,091,572.68 |
37,745,786.18 |
|
Obligation for Employee
Benefits |
21,678,212.27 |
29,617,428.96 |
- |
|
Total Liabilities |
88,125,117.21 |
84,759,956.83 |
66,775,886.01 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 4,000
par value authorized, issued
and fully paid share
capital 1,000 shares |
4,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
|
|
|
|
|
Capital Paid |
4,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning -
Unappropriated |
23,322,729.38 |
20,484,538.83 |
17,380,805.13 |
|
Total Shareholders' Equity |
27,322,729.38 |
24,484,538.83 |
21,380,805.13 |
|
Total Liabilities &
Shareholders' Equity |
115,447,846.59 |
109,244,495.66 |
88,156,691.14 |
PROFIT &
LOSS ACCOUNT
|
Sale |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
100,793,665.27 |
111,235,077.87 |
81,259,354.29 |
|
Services Income |
1,253,448.60 |
739,981.20 |
- |
|
Other Income |
1,514,776.87 |
63,057.38 |
1,053,821.41 |
|
Total Sales |
103,561,890.74 |
112,038,116.45 |
82,313,175.70 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Services |
64,812,057.60 |
73,166,316.01 |
51,766,138.18 |
|
Selling and Administrative Expenses |
31,590,928.32 |
30,976,374.47 |
26,242,692.95 |
|
Total Expenses |
96,402,985.92 |
104,142,690.48 |
78,008,831.13 |
|
Profit before Financial Cost & Income Tax |
7,158,904.82 |
7,895,425.97 |
4,304,344.57 |
|
Financial Cost |
[3,419,816.96] |
[3,841,870.54] |
[971,303.57] |
|
Profit before Income Tax |
3,739,087.86 |
4,053,555.43 |
3,333,041.00 |
|
Income Tax |
[900,897.31] |
[949,821.73] |
[754,227.53] |
|
Net Profit / [Loss] |
2,838,190.55 |
3,103,733.70 |
2,578,813.47 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.79 |
1.20 |
1.28 |
|
QUICK RATIO |
TIMES |
0.17 |
0.48 |
0.32 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.61 |
1.98 |
1.43 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.88 |
1.02 |
0.92 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
258.51 |
153.36 |
157.85 |
|
INVENTORY TURNOVER |
TIMES |
1.41 |
2.38 |
2.31 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
15.87 |
66.81 |
34.45 |
|
RECEIVABLES TURNOVER |
TIMES |
23.00 |
5.46 |
10.59 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
72.75 |
139.93 |
90.62 |
|
CASH CONVERSION CYCLE |
DAYS |
201.63 |
80.24 |
101.68 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
63.51 |
65.34 |
63.70 |
|
SELLING & ADMINISTRATION |
% |
30.96 |
27.66 |
32.29 |
|
INTEREST |
% |
3.35 |
3.43 |
1.20 |
|
GROSS PROFIT MARGIN |
% |
37.97 |
34.71 |
37.59 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
7.02 |
7.05 |
5.30 |
|
NET PROFIT MARGIN |
% |
2.78 |
2.77 |
3.17 |
|
RETURN ON EQUITY |
% |
10.39 |
12.68 |
12.06 |
|
RETURN ON ASSET |
% |
2.46 |
2.84 |
2.93 |
|
EARNING PER SHARE |
BAHT |
2,838.19 |
3,103.73 |
2,578.81 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.76 |
0.78 |
0.76 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.23 |
3.46 |
3.12 |
|
TIME INTEREST EARNED |
TIMES |
2.09 |
2.06 |
4.43 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(8.87) |
37.80 |
|
|
OPERATING PROFIT |
% |
(9.33) |
83.43 |
|
|
NET PROFIT |
% |
(8.56) |
20.36 |
|
|
FIXED ASSETS |
% |
11.63 |
(0.32) |
|
|
TOTAL ASSETS |
% |
5.68 |
23.92 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -8.87%. Turnover has decreased from THB 111,975,059.07
in 2011 to THB 102,047,113.87 in 2012. While net profit has decreased from THB
3,103,733.70 in 2011 to THB 2,838,190.55 in 2012. And total assets has
increased from THB 109,244,495.66 in 2011 to THB 115,447,846.59 in 2012.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
37.97 |
Impressive |
Industrial Average |
(0.63) |
|
Net Profit Margin |
2.78 |
Impressive |
Industrial Average |
(0.24) |
|
Return on Assets |
2.46 |
Impressive |
Industrial Average |
(0.16) |
|
Return on Equity |
10.39 |
Impressive |
Industrial Average |
(0.76) |
Gross Profit Margin used to assess a firm's financial health by revealing
the proportion of money left over from sales 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 37.97%. 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 2.78% 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
2.46%, 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 10.39%,
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 :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.79 |
Impressive |
Industrial Average |
1.55 |
|
Quick Ratio |
0.17 |
|
|
|
|
Cash Conversion Cycle |
201.63 |
|
|
|
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 1.79 times in 2012, increased from 1.2 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 0.17 times in 2012,
decreased from 0.48 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 202 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.76 |
Impressive |
Industrial Average |
0.79 |
|
Debt to Equity Ratio |
3.23 |
Acceptable |
Industrial Average |
3.84 |
|
Times Interest Earned |
2.09 |
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 2.1 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 0.76 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 |
1.61 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.88 |
Impressive |
Industrial Average |
0.68 |
|
Inventory Conversion Period |
258.51 |
|
|
|
|
Inventory Turnover |
1.41 |
Impressive |
Industrial Average |
1.14 |
|
Receivables Conversion Period |
15.87 |
|
|
|
|
Receivables Turnover |
23.00 |
Impressive |
Industrial Average |
3.10 |
|
Payables Conversion Period |
72.75 |
|
|
|
The company's Account Receivable Ratio is calculated as 23.00 and 5.46
in 2012 and 2011 respectively. This ratio measures the efficiency of the
company in managing its trade debtors to generate sale. 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 increased from 2011. 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. The inventory turnover in days has increased from 153 days at the
end of 2011 to 259 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 2.38 times in year 2011 to 1.41 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.88 times and 1.02
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.59.47 |
|
UK Pound |
1 |
Rs.99.70 |
|
Euro |
1 |
Rs.81.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
MNL |
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.