MIRA INFORM REPORT
|
Report Date : |
28.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
BRENTWOOD ASIA
LIMITED |
|
|
|
|
Registered Office : |
A3 Floor, Le
Concorde Tower, 202 Ratchadapisek Road,
Huaykwang, Bangkok 10310 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
30.09.2013 |
|
|
|
|
Date of Incorporation : |
08.01.2001 |
|
|
|
|
Com. Reg. No.: |
0105544002460 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged
in manufacturing, distributing and
exporting of cooling
tower equipment, water & waste treatment
and evaporative cooling
parts |
|
|
|
|
No of Employees : |
50 |
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
BRENTWOOD ASIA
LIMITED
SUMMARY
BUSINESS
ADDRESS : A3
FLOOR, LE CONCORDE
TOWER,
202 RATCHADAPISEK
ROAD, HUAYKWANG,
BANGKOK
10310, THAILAND
TELEPHONE : [66] 2694-1060-2
FAX :
[66] 2694-1063
E-MAIL
ADDRESS : asiasales@brentwoodindustries.com
manisara@brentw.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2001
REGISTRATION
NO. : 0105544002460
TAX
ID NO. : 3030210609
CAPITAL REGISTERED : BHT. 20,000,000
CAPITAL PAID-UP : BHT.
20,000,000
SHAREHOLDER’S PROPORTION : AMERICAN
: 100%
FISCAL YEAR CLOSING DATE : SEPTEMBER 30
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
JAMES WALLIS, AMERICAN
MANAGING DIRECTOR
NO.
OF STAFF : 50
LINES
OF BUSINESS : COOLING TOWER
EQUIPMENT AND PARTS
MANUFACTURER, 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 8,
2001 as a private
limited company under
the registered name
BRENTWOOD ASIA LIMITED, by
American group, with the
business objective to manufacture and
distribute cooling tower
equipment and parts
for both domestic
and international markets.
It currently employs
approximately 50 staff. The
subject is a
wholly owned subsidiary
of Brentwood Industries
Inc., in U.S.A.
The subject’s registered address
is A3 Floor,
Le Concorde Tower,
202 Ratchadapisek Road,
Huaykwang, Bangkok 10310, and
this is the
subject’s current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. James Wallis |
|
American |
67 |
|
Mr. Palle Rye |
|
American |
78 |
|
Mr. Thiti Tantiariyasup |
|
Thai |
33 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. James Wallis is
the Managing Director.
He is American
nationality with the
age of 67 years
old.
Mr. Thiti Tantiariyasup is the
Sales and Marketing
Manager.
He is Thai nationality with
the age of 33
years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing, distributing and
exporting of cooling
tower equipment, water & waste treatment
and evaporative cooling
parts under its
own brand “BRENTWOOD”.
PURCHASE
Raw materials such
as PVC resin,
plastic sheets and
components are purchased
from both domestic
and overseas suppliers
in Republic of
China, Germany and
U.S.A.
SALES
80% of the
products is sold
locally to wholesalers,
manufacturers and end-users
mainly power plant
operators, the remaining 20%
is exported to
Malaysia, Japan, Singapore,
Australia, Indonesia and
Taiwan.
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.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject currently employs
approximately 50 office
staff and factory
workers.
LOCATION DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in commercial/residential area.
Factory
and warehouse is
located at 126
Moo 4, Nongtapan-Mabkha Road,
T. Mabkha, A. Nikhompattana, Rayong
21180.
COMMENT
The subject
is a manufacturer,
distributor and exporter
of cooling tower
equipment, water & waste treatment
and evaporative cooling
parts under its
own brand “BRENTWOOD”.
With the technical
knowhow and financial
support from its
parent company, its
products are well
recognized for the standard
quality by its
customers of both
local and overseas.
Its operating performance
in 2013 was
impressive with an increase
in both sales
revenue and net
profit comparing to
the previous year.
Generally, its business
is solid and
remains promising.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 20,000,000 divided
into 200,000 shares of Bht. 100
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE
[as
at April 30,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Brentwood Industries Inc. Nationality: American Address : 610
Morgan Town Road,
Reading P A, U.S.A. |
199,994 |
99.99 |
|
Mr. James Wallis Nationality: American Address : 610
Morgan Town Road,
Reading P A, U.S.A. |
1 |
|
|
Mrs. Rita Ingemann Rye Nationality: American Address : 610
Morgan Town Road,
Reading P A, U.S.A. |
1 |
|
|
Mr. Palle Rye Nationality: American Address : 610
Morgan Town Road,
Reading P A, U.S.A. |
1 |
= 0.01 |
|
Mr. Peter Rye Nationality: American Address : 610
Morgan Town Road,
Reading P A, U.S.A. |
1 |
|
|
Mr. Peter Philip Nationality: American Address : 610
Morgan Town Road,
Reading P A, U.S.A. |
1 |
|
|
Mr. Michael Rayner Nationality: American Address : 610
Morgan Town Road,
Reading P A, U.S.A. |
1 |
|
Total Shareholders : 7
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign - American |
7 |
200,000 |
100.00 |
|
Total |
7 |
200,000 |
100.00 |
NAME
OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO
Mr. Kamol Voravach No.
7724
BALANCE
SHEET [BAHT]
The
latest financial figures
published for September
30, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents
|
4,053,397 |
9,127,159 |
13,377,758 |
|
Trade Accounts Receivable |
15,471,864 |
15,453,694 |
12,331,316 |
|
Inventories |
33,011,917 |
33,253,944 |
26,997,388 |
|
Other Current Assets
|
4,640,660 |
5,238,982 |
5,031,792 |
|
|
|
|
|
|
Total Current Assets
|
57,177,838 |
63,073,779 |
57,738,254 |
|
Long-term Loan -
Related Company |
31,432,293 |
9,008,981 |
1,374,912 |
|
Fixed Assets |
37,281,842 |
35,272,139 |
41,325,733 |
|
Intangible Assets |
72,694 |
192,510 |
312,326 |
|
Other Non-current Assets |
477,284 |
469,301 |
469,301 |
|
Total Assets |
126,441,951 |
108,016,710 |
101,220,526 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade
Accounts Receivable
- Related Company |
9,588,377 |
4,965,484 |
2,253,596 |
|
-
Other Company |
3,526,132 |
4,233,504 |
7,399,334 |
|
Accrued Expenses
& Other Payable |
4,389,537 |
1,885,701 |
1,671,194 |
|
Advance Income
from Goods |
3,079,365 |
1,132,293 |
62,022 |
|
Other Current
Liabilities |
1,570,582 |
1,289,210 |
1,051,921 |
|
|
|
|
|
|
Total Current
Liabilities |
22,153,993 |
13,506,192 |
12,438,067 |
|
Total Liabilities |
22,153,993 |
13,506,192 |
12,438,067 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100 par
value Authorized &
issued share capital
200,000 shares
|
20,000,000 |
20,000,000 |
20,000,000 |
|
|
|
|
|
|
Capital Paid |
20,000,000 |
20,000,000 |
20,000,000 |
|
Retained Earning - Unappropriated
[Deficit] |
84,287,958 |
74,510,518 |
68,782,459 |
|
|
|
|
|
|
Total Shareholders' Equity |
104,287,958 |
94,510,518 |
88,782,459 |
|
Total Liabilities &
Shareholders' Equity |
126,441,951 |
108,016,710 |
101,220,526 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales
|
112,351,956 |
79,959,065 |
73,692,449 |
|
Other
Income |
5,362,040 |
2,946,049 |
2,140,116 |
|
Total Revenues |
117,713,996 |
82,905,114 |
75,832,565 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
85,051,734 |
61,159,917 |
62,146,007 |
|
Selling Expenses |
8,598,238 |
4,892,353 |
6,126,218 |
|
Administrative Expenses |
12,971,460 |
10,780,471 |
9,498,522 |
|
Total Expenses |
106,621,432 |
76,832,741 |
77,770,747 |
|
|
|
|
|
|
Profit / [Loss] before Income Tax
|
11,092,564 |
6,072,373 |
[1,938,182] |
|
Income Tax |
[1,315,124] |
[344,314] |
- |
|
Net Profit / [Loss] |
9,777,440 |
5,728,059 |
[1,938,182] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.58 |
4.67 |
4.64 |
|
QUICK RATIO |
TIMES |
0.88 |
1.82 |
2.07 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.01 |
2.27 |
1.78 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.89 |
0.74 |
0.73 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
141.67 |
198.46 |
158.56 |
|
INVENTORY TURNOVER |
TIMES |
2.58 |
1.84 |
2.30 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
50.26 |
70.54 |
61.08 |
|
RECEIVABLES TURNOVER |
TIMES |
7.26 |
5.17 |
5.98 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
CASH CONVERSION CYCLE |
DAYS |
191.93 |
269.00 |
219.64 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
75.70 |
76.49 |
84.33 |
|
SELLING & ADMINISTRATION |
% |
19.20 |
19.60 |
21.20 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
29.07 |
27.20 |
18.57 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
9.87 |
7.59 |
(2.63) |
|
NET PROFIT MARGIN |
% |
8.70 |
7.16 |
(2.63) |
|
RETURN ON EQUITY |
% |
9.38 |
6.06 |
(2.18) |
|
RETURN ON ASSET |
% |
7.73 |
5.30 |
(1.91) |
|
EARNING PER SHARE |
BAHT |
48.89 |
28.64 |
(9.69) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.18 |
0.13 |
0.12 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.21 |
0.14 |
0.14 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
40.51 |
8.50 |
|
|
OPERATING PROFIT |
% |
82.67 |
(413.30) |
|
|
NET PROFIT |
% |
70.69 |
395.54 |
|
|
FIXED ASSETS |
% |
5.70 |
(14.65) |
|
|
TOTAL ASSETS |
% |
17.06 |
6.71 |
|
ANNUAL GROWTH :
EXCELLENT
An annual sales growth is 40.51%. Turnover has increased from THB
79,959,065.00 in 2012 to THB 112,351,956.00 in 2013. While net profit has
increased from THB 5,728,059.00 in 2012 to THB 9,777,440.00 in 2013. And total
assets has increased from THB 108,016,710.00 in 2012 to THB 126,441,951.00 in
2013.
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
29.07 |
Impressive |
Industrial
Average |
20.51 |
|
Net Profit Margin |
8.70 |
Impressive |
Industrial
Average |
3.34 |
|
Return on Assets |
7.73 |
Impressive |
Industrial
Average |
3.98 |
|
Return on Equity |
9.38 |
Impressive |
Industrial
Average |
7.99 |
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. Gross Profit Margin is 29.07%. 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. Net Profit Margin ratio is 8.7%,
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
7.73%, 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 9.38%,
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 |
2.58 |
Impressive |
Industrial
Average |
1.74 |
|
Quick Ratio |
0.88 |
|
|
|
|
Cash Conversion Cycle |
191.93 |
|
|
|
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 2.58 times in 2013, decrease from 4.67 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 0.88 times in 2013, decrease
from 1.82 times, by excluding inventory, the company may have problems meeting
current liabilities.
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 192 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.18 |
Impressive |
Industrial
Average |
0.49 |
|
Debt to Equity Ratio |
0.21 |
Impressive |
Industrial
Average |
0.95 |
|
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 lower the percentage means that the company is
using less leverage and has a stronger equity position.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.18 less than 0.5, most of the company's
assets are financed through equity.
Trend of the average
competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Stable
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.01 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.89 |
Acceptable |
Industrial
Average |
1.19 |
|
Inventory Conversion Period |
141.67 |
|
|
|
|
Inventory Turnover |
2.58 |
Acceptable |
Industrial
Average |
3.45 |
|
Receivables Conversion Period |
50.26 |
|
|
|
|
Receivables Turnover |
7.26 |
Impressive |
Industrial
Average |
4.87 |
|
Payables Conversion Period |
- |
|
|
|
The company's Account Receivable Ratio is calculated as 7.26 and 5.17 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 198 days at the
end of 2012 to 142 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 1.84 times in year 2012 to 2.58 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.89 times and 0.74
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.61.23 |
|
|
1 |
Rs.98.53 |
|
Euro |
1 |
Rs.77.75 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
SMN |
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.