MIRA INFORM REPORT
|
Report Date : |
16.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
MHC CHEMICALS CO., LTD. |
|
|
|
|
Registered Office : |
11 Soi Thientalay
26 Yaek 2, Bangkhunthien-Chaitalay Road,
Thakham, Bangkhunthien, Bangkok 10150 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
23.02.2011 |
|
|
|
|
Com. Reg. No.: |
0105554027163 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
engaged in importing
and distributing wide
range of chemicals
and colorants [pigments] for
various industries, such
as packaging, coatings,
inks, paints, plastics,
stationery, textiles, rubber
and others. |
|
|
|
|
No of Employees : |
9 |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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 & address
MHC CHEMICALS CO.,
LTD.
SUMMARY
BUSINESS ADDRESS : 11 SOI THIENTALAY
26 YAEK 2,
BANGKHUNTHIEN-CHAITALAY ROAD,
THAKHAM,
BANGKHUNTHIEN, BANGKOK
10150, THAILAND
TELEPHONE : [66] 2897-2310
FAX : [66] 2897-2211
E-MAIL ADDRESS : phokhai@mhcchemicals.com
REGISTRATION ADDRESS : SAME AS
BUSINESS ADDRESS
ESTABLISHED : 2011
REGISTRATION NO. : 0105554027163
TAX ID NO. : 3034355085
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.
AROONCHAI SIRIMAHACHAI, THAI
MANAGING DIRECTOR
NO. OF STAFF : 9
LINES OF BUSINESS : INDUSTRIAL CHEMICALS
AND COLORANTS
IMPORTER AND
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 February
23, 2011 as
a private limited
company under the
registered name MHC
CHEMICALS CO., LTD., by
Thai group, with the business
objective to import
and distribute wide
range of industrial
chemicals and colorants.
It currently employs 9
staff.
The subject’s registered
address is 11
Soi Thientalay 26
Yaek 2, Bangkhunthien-Chaitalay Rd.,
Thakham, Bangkhunthien, Bangkok
10150, and this
is the subject’s
current operation address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Aroonchai Sirimahachai |
|
Thai |
66 |
|
Mr. Phokhai Sirimahachai |
|
Thai |
36 |
|
Mr. Wutipong Amornchaichan |
|
Thai |
42 |
|
Mrs. Kanokket Amornchaichan |
|
Thai |
42 |
|
Mr. Pakawat Sirimahachai |
|
Thai |
35 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Aroonchai Sirimahachai is
the Managing Director.
He is Thai
nationality with the
age of 66
years old.
Mr. Phokhai Sirimahachai is
the Assistant Managing
Director.
He is Thai
nationality with the
age of 36
years old.
Mrs. Kanokket Amornchaichan is
the Financial &
Accounting Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing wide
range of chemicals
and colorants [pigments] for
various industries, such
as packaging, coatings,
inks, paints, plastics,
stationery, textiles, rubber
and others.
PURCHASE
The products are
purchased from suppliers
both domestic and
overseas, mainly in
Republic of China,
Japan and India.
SALES
100% of the
products is sold
locally to wholesalers,
manufacturers 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
according to 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
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The subject currently
employs 9 staff.
LOCATION DETAILS
The premise is owned
for administrative office and
warehouse at the heading
address. Premise is
located in commercial/residential area.
COMMENT
The subject is
an importer and distributor of industrial
chemicals for various
industries. Since establishment, its
business has grown
subsequently.
FINANCIAL INFORMATION
The capital was registered at
Bht. 1,000,000 divided into
1,000 shares of
Bht. 1,000 each with
fully paid.
On October 10, 2014,
the registered capital
was increased to
Bht. 5,000,000 divided into
5,000 shares of
Bht. 1,000 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE : [as
at August 27,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Aroonchai Sirimahachai Nationality: Thai Address : 88
Soi Noomuthis, Hatyai,
Songkhla |
1,000 |
20.00 |
|
Mrs. Hattaya Sirimahachai Nationality: Thai Address : 88
Soi Noomuthis, Hatyai,
Songkhla |
1,000 |
20.00 |
|
Mr. Phokhai Sirimahachai Nationality: Thai Address : 2529/128
Troknokkhet, Bangklo,
Bangkorlaem, Bangkok |
1,000 |
20.00 |
|
Mr. Wutipong Amornchaichan Nationality: Thai Address : 2529/128
Troknokkhet, Bangklo,
Bangkorlaem, Bangkok |
500 |
10.00 |
|
Mrs. Kanokket Amornchaichan Nationality: Thai Address : 2529/128
Troknokkhet, Bangklo,
Bangkorlaem, Bangkok |
500 |
10.00 |
|
Mr. Keerati Sirimahachai Nationality: Thai Address : 20/1
Ratyindee Road, Hatyai,
Songkhla |
500 |
10.00 |
|
Mr. Pakawat Sirimahachai Nationality: Thai Address : 20/1
Ratyindee Road, Hatyai,
Songkhla |
500 |
10.00 |
Total Shareholders : 7
Share Structure [as
at August 27,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
5,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
5,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Pawut Attapemo No. 7838
BALANCE SHEET
[BAHT]
The latest financial figures published
as at December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
4,978,975.55 |
2,037,063.14 |
848,747.64 |
|
Trade Accounts Receivable
|
196,077.50 |
1,816,458.75 |
1,052,976.30 |
|
Inventories |
2,207,986.41 |
2,071,352.81 |
1,031,096.12 |
|
Other Current Assets
|
226,942.17 |
86,467.01 |
36,894.19 |
|
|
|
|
|
|
Total Current Assets
|
7,609,981.63 |
6,011,341.71 |
2,969,714.25 |
|
|
|
|
|
|
Fixed Assets |
20,583.54 |
51,424.72 |
82,265.90 |
|
Total Assets |
7,630,565.17 |
6,062,766.43 |
3,051,980.15 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts Payable
|
102,490.12 |
1,098,685.10 |
- |
|
Accrued Expenses |
915,000.00 |
265,000.00 |
208,000.00 |
|
Other Current Liabilities |
2,646.15 |
2,167.15 |
1,950.00 |
|
|
|
|
|
|
Total Current Liabilities |
1,020,136.27 |
1,365,852.25 |
209,950.00 |
|
Long-term Loan |
5,050,759.21 |
3,415,759.21 |
1,709,400.00 |
|
Total Liabilities |
6,070,895.48 |
4,781,611.46 |
1,919,350.00 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 1,000 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 |
559,669.69 |
281,154.97 |
132,630.15 |
|
Total Shareholders' Equity |
1,559,669.69 |
1,281,154.97 |
1,132,630.15 |
|
Total Liabilities & Shareholders' Equity |
7,630,565.17 |
6,062,766.43 |
3,051,980.15 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
9,899,536.12 |
7,988,171.49 |
1,579,043.00 |
|
Interest Income |
35,329.64 |
35,472.71 |
11,340.18 |
|
Total Revenues |
9,934,865.76 |
8,023,644.20 |
1,590,383.18 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
7,606,065.84 |
6,692,471.96 |
879,596.41 |
|
Selling Expenses |
151,030.85 |
108,834.02 |
31,805.00 |
|
Administrative Expenses |
1,899,254.35 |
1,073,813.40 |
546,351.62 |
|
Total Expenses |
9,656,351.04 |
7,875,119.38 |
1,457,753.03 |
|
Profit / [Loss] before Income
Tax |
278,514.72 |
148,524.82 |
132,630.15 |
|
Income Tax |
- |
- |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
278,514.72 |
148,524.82 |
132,630.15 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
7.46 |
4.40 |
14.14 |
|
QUICK RATIO |
TIMES |
5.07 |
2.82 |
9.06 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
480.94 |
155.34 |
19.19 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.30 |
1.32 |
0.52 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
105.96 |
112.97 |
427.87 |
|
INVENTORY TURNOVER |
TIMES |
3.44 |
3.23 |
0.85 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
7.23 |
83.00 |
243.40 |
|
RECEIVABLES TURNOVER |
TIMES |
50.49 |
4.40 |
1.50 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
4.92 |
59.92 |
- |
|
CASH CONVERSION CYCLE |
DAYS |
108.27 |
136.05 |
671.27 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
76.83 |
83.78 |
55.70 |
|
SELLING & ADMINISTRATION |
% |
20.71 |
14.80 |
36.61 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
23.52 |
16.66 |
45.01 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.81 |
1.86 |
8.40 |
|
NET PROFIT MARGIN |
% |
2.81 |
1.86 |
8.40 |
|
RETURN ON EQUITY |
% |
17.86 |
11.59 |
11.71 |
|
RETURN ON ASSET |
% |
3.65 |
2.45 |
4.35 |
|
EARNING PER SHARE |
BAHT |
278.51 |
148.52 |
132.63 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.80 |
0.79 |
0.63 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.89 |
3.73 |
1.69 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
23.93 |
405.89 |
|
|
OPERATING PROFIT |
% |
87.52 |
11.98 |
|
|
NET PROFIT |
% |
87.52 |
11.98 |
|
|
FIXED ASSETS |
% |
(59.97) |
(37.49) |
|
|
TOTAL ASSETS |
% |
25.86 |
98.65 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 23.93%.
Turnover has increased from THB 7,988,171.49 in 2012 to THB 9,899,536.12 in
2013. While net profit has increased from THB 148,524.82 in 2012 to THB
278,514.72 in 2013. And total assets has increased from THB 6,062,766.43 in
2012 to THB 7,630,565.17 in 2013.
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
23.52 |
Acceptable |
Industrial Average |
38.49 |
|
Net Profit Margin |
2.81 |
Acceptable |
Industrial Average |
5.20 |
|
Return on Assets |
3.65 |
Acceptable |
Industrial Average |
6.21 |
|
Return on Equity |
17.86 |
Impressive |
Industrial Average |
9.96 |
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 23.52%. 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 2.81%.
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 3.65%.
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 17.86%, 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 |
7.46 |
Impressive |
Industrial Average |
1.38 |
|
Quick Ratio |
5.07 |
|
|
|
|
Cash Conversion Cycle |
108.27 |
|
|
|
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 7.46 times in 2013, increase from 4.4 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 5.07 times in 2013,
increase from 2.82 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 109 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.80 |
Acceptable |
Industrial Average |
0.34 |
|
Debt to Equity Ratio |
3.89 |
Risky |
Industrial Average |
0.52 |
|
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 0.8 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 Downtrend
Times Interest Earned Stable
ACTIVITY : IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
480.94 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.30 |
Impressive |
Industrial Average |
1.19 |
|
Inventory Conversion Period |
105.96 |
|
|
|
|
Inventory Turnover |
3.44 |
Deteriorated |
Industrial Average |
11.32 |
|
Receivables Conversion Period |
7.23 |
|
|
|
|
Receivables Turnover |
50.49 |
Impressive |
Industrial Average |
5.46 |
|
Payables Conversion Period |
4.92 |
|
|
|
The company's Account Receivable Ratio is calculated as 50.49 and 4.40
in 2013 and 2012 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
2013 increased from 2012. 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 decreased from 113 days at the
end of 2012 to 106 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 3.23 times in year 2012 to 3.44 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.3 times and 1.32
times in 2013 and 2012 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 Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.11 |
|
|
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.77.68 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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.