MIRA INFORM REPORT
|
Report Date : |
27.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
SEHLI BROTHERS LIMITED PARTNERSHIP |
|
|
|
|
Registered Office : |
43, 43/1, 43/5, 43/6,
43/7 Trok Krai, Rajawongse Road,
Chakrawad, Samphantawong, Bangkok
10100 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
15.01.1960 |
|
|
|
|
Com. Reg. No.: |
0103503000258 |
|
|
|
|
Legal Form : |
Limited Partnership |
|
|
|
|
Line of Business : |
Engaged in importing,
distributing and exporting
various kinds of
fabrics such as
suiting fabric, cotton,
polyester, silk, lace
fabric. |
|
|
|
|
No. of Employees : |
4 |
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
SEHLI BROTHERS
LIMITED PARTNERSHIP
SUMMARY
BUSINESS
ADDRESS : 43, 43/1, 43/5, 43/6, 43/7 TROK
KRAI,
RAJAWONGSE
ROAD, CHAKRAWAD, SAMPHANTAWONG, BANGKOK
10100,
THAILAND
TELEPHONE : [66] 2226-3830-2,
2226-0032
FAX :
[66] 2225-7698
E-MAIL
ADDRESS : sprachaseri@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1960
REGISTRATION
NO. : 0103503000258
TAX
ID NO. : 3102133805
CAPITAL REGISTERED : BHT. 5,000,000
CAPITAL PAID-UP : BHT.
5,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : LIMITED
PARTNERSHIP
EXECUTIVE : MR. SUPHOL PRACHASERI,
THAI
MANAGING PARTNER
NO.
OF STAFF : 4
LINES
OF BUSINESS : FABRICS
IMPORTER, DISTRIBUTOR
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 January 15,
1960 as a
limited partnership under
the name style SEHLI
BROTHERS LIMITED PARTNERSHIP
by Thai partners,
with the business
objective to import
and distribute various
kinds of fabrics
to domestic market.
It currently employs
4 staff.
The
subject’s registered address
is 43, 43/1, 43/5, 43/6, 43/7 Trok Krai,
Rajawongse Rd., Chakrawad,
Samphantawong, Bangkok
10100, and this
is the subject’s
current operation address.
AUTHORIZED
PERSON
Mr. Suphol Prachaseri signs
on behalf of
the subject with
seal affixed. He
also bears full
financial responsibility by
law.
MANAGEMENT
Mr. Suphol Prachaseri is
the Managing Partner.
He is Thai
nationality with the
age of 63 years
old.
Mr. Shivraj Prachaseri is the
Assistant Manager.
He is Thai
nationality with the
age of 39 years
old.
BUSINESS
OPERATIONS
The subject is
engaged in importing,
distributing and exporting
various kinds of
fabrics such as
suiting fabric, cotton,
polyester, silk, lace
fabric.
PURCHASE
90%
of the products
is imported from
India, Republic of
China, France, U.K.,
and Italy, the
remaining 10% is purchased
from local suppliers.
SALES
95% of the products is
sold locally, and
the remaining 5%
is exported to
Vietnam and Hong
Kong.
85%
of the products
is supplied by
wholesale to traders
and garment manufacturers, and
15% of the
rest is to
Sehli Brothers [Thailand]
Co., Ltd., the
related company,
RELATED AND AFFILIATED
COMPANY
Sehli Brothers [Thailand]
Co., Ltd.
Business Type : Importer and
distributor of fabrics
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
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.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs 4
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 has been
firmly established for
over five decades
as an importer
and distributor various
kinds of fabrics.
Later, it has
expanded to export
the fabrics as
well. The subject reported
a sharp increase
in sales revenue
in 2013 comparing to
the previous year’s
level. In general,
the subject has
a good business
and well-known among
its regular customers
and expanding its business
to new customers
too.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 5,000,000 which was carried by 2 persons
as followed:
Name Amount
Mr. Suphol Prachaseri Bht. 2,500,000
[Unlimited Partner]
Mr. Hansaraj Lachmandas Bht. 2,500,000
In
2012, the capital
was carried by 2 persons as
followed:
Name Age Amount
Mr. Suphol Prachaseri 63 Bht. 2,500,000
[Unlimited Partner]
Mr. Shivraj Prachasri 39 Bht. 2,500,000
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Monthon Vichitcharanrung No. 5727
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 |
- |
52,453.30 |
121,044.06 |
|
Trade Accounts Receivable
|
53,037,540.99 |
8,808,572.46 |
10,530,416.68 |
|
Inventories |
1,113,008.94 |
2,125,277.97 |
4,787,975.72 |
|
Other Current Assets
|
72,246.94 |
336,613.63 |
- |
|
|
|
|
|
|
Total Current Assets
|
54,222,796.87 |
11,322,917.36 |
15,439,436.46 |
|
|
|
|
|
|
Fixed Assets |
4,000,795.84 |
4,000,795.84 |
4,000,795.84 |
|
Total Assets |
58,223,592.71 |
15,323,713.20 |
19,440,232.30 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft |
8,422,796.04 |
2,459,927.89 |
2,310,866.11 |
|
Trade Accounts Payable
|
36,104,485.63 |
638,942.10 |
6,216,192.44 |
|
Other Current Liabilities |
292,154.47 |
219,235.99 |
265,074.33 |
|
|
|
|
|
|
Total Current Liabilities |
44,819,436.14 |
3,318,105.98 |
8,792,132.88 |
|
Total Liabilities |
44,819,436.14 |
3,318,105.98 |
8,792,132.88 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Capital Paid |
5,000,000.00 |
5,000,000.00 |
5,000,000.00 |
|
Retained Earning - Unappropriated |
8,404,156.57 |
7,005,607.22 |
5,648,099.42 |
|
Total Shareholders' Equity |
13,404,156.57 |
12,005,607.22 |
10,648,099.42 |
|
Total Liabilities & Shareholders' Equity |
58,223,592.71 |
15,323,713.20 |
19,440,232.30 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
81,351,132.24 |
29,303,296.28 |
19,052,453.29 |
|
Revenue from Overseas Sale |
283,036.10 |
- |
- |
|
Gain on Exchange Rate |
14,234.58 |
53,939.30 |
109,843.96 |
|
Total Revenues |
81,648,402.92 |
29,357,235.58 |
19,162,297.25 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
77,978,160.01 |
26,754,149.30 |
16,802,734.50 |
|
Selling Expenses |
919,980.00 |
700,926.00 |
570,033000 |
|
Administrative Expenses |
250,780.37 |
153,229.46 |
106,370.84 |
|
Total Expenses |
79,148,920.38 |
27,608,304.76 |
17,479,138.34 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income Tax |
2,499,482.54 |
1,748,930.82 |
1,683,158.91 |
|
Financial Costs |
[721,086.55] |
[105,808.32] |
[264,493.40] |
|
Profit / [Loss] before Income
Tax |
1,778,395.99 |
1,643,122.50 |
1,418,665.51 |
|
Income Tax |
[379,846.64] |
[285,614.70] |
[237,180.56] |
|
Net Profit / [Loss] |
1,398,549.35 |
1,357,507.80 |
1,181,484.95 |
|
Retained Earning, Beginning of Year |
7,005,607.22 |
5,648,099.42 |
4,466,614.47 |
|
|
|
|
|
|
Retained Earning, End
of Year |
8,404,156.57 |
7,005,607.22 |
5,648,099.42 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.21 |
3.41 |
1.76 |
|
QUICK RATIO |
TIMES |
1.18 |
2.67 |
1.21 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
20.40 |
7.32 |
4.76 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.40 |
1.91 |
0.98 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
5.21 |
28.99 |
104.01 |
|
INVENTORY TURNOVER |
TIMES |
70.06 |
12.59 |
3.51 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
237.14 |
109.72 |
201.74 |
|
RECEIVABLES TURNOVER |
TIMES |
1.54 |
3.33 |
1.81 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
169.00 |
8.72 |
135.03 |
|
CASH CONVERSION CYCLE |
DAYS |
73.35 |
130.00 |
170.71 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
95.52 |
91.30 |
88.19 |
|
SELLING & ADMINISTRATION |
% |
1.43 |
2.91 |
2,992.47 |
|
INTEREST |
% |
0.88 |
0.36 |
1.39 |
|
GROSS PROFIT MARGIN |
% |
4.50 |
8.88 |
12.38 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.06 |
5.97 |
8.83 |
|
NET PROFIT MARGIN |
% |
1.71 |
4.63 |
6.20 |
|
RETURN ON EQUITY |
% |
10.43 |
11.31 |
11.10 |
|
RETURN ON ASSET |
% |
2.40 |
8.86 |
6.08 |
|
EARNING PER SHARE |
BAHT |
27.97 |
27.15 |
23.63 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.77 |
0.22 |
0.45 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.34 |
0.28 |
0.83 |
|
TIME INTEREST EARNED |
TIMES |
3.47 |
16.53 |
6.36 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
178.58 |
53.80 |
|
|
OPERATING PROFIT |
% |
42.91 |
3.91 |
|
|
NET PROFIT |
% |
3.02 |
14.90 |
|
|
FIXED ASSETS |
% |
- |
- |
|
|
TOTAL ASSETS |
% |
279.96 |
(21.18) |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 178.58%. Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
4.50 |
Deteriorated |
Industrial
Average |
10.93 |
|
Net Profit Margin |
1.71 |
Impressive |
Industrial
Average |
1.45 |
|
Return on Assets |
2.40 |
Impressive |
Industrial
Average |
2.05 |
|
Return on Equity |
10.43 |
Impressive |
Industrial
Average |
6.65 |
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 4.5%. 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. Net Profit Margin ratio is 1.71%,
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
2.4%, 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 10.43%, 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 :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.21 |
Satisfactory |
Industrial
Average |
1.31 |
|
Quick Ratio |
1.18 |
|
|
|
|
Cash Conversion Cycle |
73.35 |
|
|
|
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 1.21 times in 2013, decrease from 3.41 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 1.18 times in 2013,
decrease from 2.67 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 74 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.77 |
Acceptable |
Industrial
Average |
0.66 |
|
Debt to Equity Ratio |
3.34 |
Risky |
Industrial
Average |
2.06 |
|
Times Interest Earned |
3.47 |
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 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 3.47 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 0.77 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 |
20.40 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.40 |
Satisfactory |
Industrial
Average |
1.41 |
|
Inventory Conversion Period |
5.21 |
|
|
|
|
Inventory Turnover |
70.06 |
Impressive |
Industrial
Average |
4.18 |
|
Receivables Conversion Period |
237.14 |
|
|
|
|
Receivables Turnover |
1.54 |
Acceptable |
Industrial
Average |
2.43 |
|
Payables Conversion Period |
169.00 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.54 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 29 days at the
end of 2012 to 5 days at the end of 2013. This represents a positive trend. And
Inventory turnover has increased from 12.59 times in year 2012 to 70.06 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.4 times and 1.91
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 Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.24 |
|
|
1 |
Rs.98.67 |
|
Euro |
1 |
Rs.77.97 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
PDT |
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.