MIRA
INFORM REPORT
|
Report Date : |
11.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
MELIORA INTERNATIONAL CO., LTD. |
|
|
|
|
Registered Office : |
93 SOI Raminthra
52/1, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
24.03.2008 |
|
|
|
|
Com. Reg. No.: |
0105551033961 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer,
Distributor and Exporter of Fabrics |
|
|
|
|
No of Employees : |
21 |
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 : |
Slow but correct |
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|
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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 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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
MELIORA INTERNATIONAL
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 93
SOI RAMINTHRA 52/1,
RAMINTHRA ROAD,
KANNAYAO, BANGKOK
10230, THAILAND
TELEPHONE : [66] 2948-7114-5
FAX :
[66] 2948-7113
E-MAIL
ADDRESS : monto@meliora-international.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2008
REGISTRATION
NO. : 0105551033961
TAX
ID NO. : 3033002928
CAPITAL REGISTERED : BHT. 2,000,000
CAPITAL PAID-UP : BHT.
2,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. PORNTHEP DAHUJA,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 21
LINES
OF BUSINESS : FABRICS
IMPORTER,
DISTRIBUTOR AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on March 24, 2008 as
a private limited
company under the
registered name MELIORA INTERNATIONAL CO.,
LTD., by Thai groups, with
the business objective
to import and
distribute various kinds
of fabrics both
domestic and international
markets. It currently
employs 21 staff.
The
subject’s registered address
is 93 Soi
Raminthra 52/1, Raminthra
Road, Kannayao, Bangkok
10230, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Pornthep Dahuja |
[x] |
Thai |
42 |
|
Ms. Paveena Dahuja |
[x] |
Thai |
49 |
|
Mr. Darlo Chandsingh Chaisamoraphum |
|
Thai |
78 |
AUTHORIZED PERSON
Both of the
mentioned directors [x] can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Pornthep Dahuja is
the Managing Director.
He is Thai
nationality with the
age of 42 years
old.
Ms. Paveena Dahuja is
the Deputy Managing
Director.
She is Thai
nationality with the
age of 49 years
old.
BUSINESS OPERATIONS
The subject
is engaged in
importing, distributing and
re-exporting various kinds
of fabrics, such
as cotton fabric,
synthetic fabric, nylon
fabric, lace, linen,
printed chiffon fabric and
etc., as well
as exporting local
textile and garment
products.
PURCHASE
The
products are purchased
from suppliers both domestic
and overseas in
India, Republic of
China, Italy, France,
U.S.A. and Indonesia.
SALES [LOCAL]
The products are
sold locally by
wholesale to traders,
manufacturers and end-users.
EXPORT
The products are
exported and re-exported
to Hong Kong and
the countries in Europe.
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
21 staff.
LOCATION DETAILS
The
premise is owned for
administrative office and warehouse
at the heading
address. Premise is
located in commercial/residential area.
COMMENT
Subject
had moderate business
performance in the
past several years.
However, consumption slowdown
from economic uncertainties
had decreased demand
of products in
2013.
As
well in the current
economic environment, consumers will be
cautious on their
spending. Slowdown of the
country economy occurred gradually,
and has slowed down
consumer spending. This
would affect on
the company’s growth in
2014.
FINANCIAL INFORMATION
The capital
was registered at Bht. 2,000,000
divided into 20,000 shares of
Bht. 100 each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Pornthep Dahuja Nationality: Thai Address : 102
Charansanitwomg Road, Wadthaphra,
Bangkokyai, Bangkok |
14,200 |
71.00 |
|
Ms. Paveena Dahuja Nationality: Thai Address : 15/155 Charansanitwomg Road, Wadthaphra,
Bangkokyai, Bangkok |
5,400 |
27.00 |
|
Ms. Tassanee Chonlakornpijarn Nationality: Thai Address : 99/338
Sukhapiban 3 Road,
Sapansung, Bangkok |
200 |
1.00 |
|
Ms. Soompaka Sawanapredee Nationality: Thai Address : 121/13
Sailuad Road, T. Paknam, A. Muang,
Samutprakarn |
200 |
1.00 |
Total Shareholders : 4
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
20,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
4 |
20,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Mr. Thanongsak Praditthan
No. 8819
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 |
5,234,269.70 |
6,135,580.87 |
11,442,915.72 |
|
Trade Accounts &
Other Receivable |
8,123,357.73 |
9,002,245.67 |
10,649,212.22 |
|
Inventories |
1,375,487.56 |
1,648,637.07 |
1,412,856.94 |
|
|
|
|
|
|
Total Current Assets
|
14,733,114.99 |
16,786,463.61 |
23,504,984.88 |
|
|
|
|
|
|
Fixed Assets |
617,096.50 |
1,192,317.63 |
1,784,115.10 |
|
Other Non - current Assets |
52,000.00 |
52,000.00 |
52,000.00 |
|
Total Assets |
15,402,211.49 |
18,030,781.24 |
25,341,099.98 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
5,780,220.28 |
8,786,838.47 |
14,852,838.38 |
|
Accrued Income Tax |
73,614.19 |
- |
221,163.51 |
|
Current Portion of
Financial Lease Contract Liabilities |
41,666.66 |
264,666.15 |
- |
|
|
|
|
|
|
Total Current Liabilities |
5,895,501.13 |
9,051,504.62 |
15,074,001.89 |
|
Financial Lease Contract
Liabilities |
- |
44,800.00 |
559,466.11 |
|
Long-term Loans from Related Person |
6,888,602.84 |
6,616,486.20 |
6,516,486.20 |
|
Total Liabilities |
12,784,103.97 |
15,712,790.82 |
22,149,954.20 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 20,000 shares |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
|
|
|
|
|
Capital Paid |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
618,107.52 |
317,990.42 |
1,191,145.78 |
|
Total Shareholders' Equity |
2,618,107.52 |
2,317,990.42 |
3,191,145.78 |
|
Total Liabilities &
Shareholders' Equity |
15,402,211.49 |
18,030,781.24 |
25,341,099.98 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
40,436,652.81 |
37,573,964.08 |
56,102,805.27 |
|
Other Income |
43,138.03 |
52,620.36 |
2,039,784.08 |
|
Total Revenues |
40,479,790.84 |
37,626,584.44 |
58,142,589.35 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
30,323,734.79 |
27,568,786.39 |
43,628,017.70 |
|
Selling Expenses |
4,442,003.65 |
3,647,629.05 |
5,859,148.99 |
|
Administrative Expenses |
5,259,352.28 |
7,259,346.25 |
7,180,800.52 |
|
Total Expenses |
40,025,090.72 |
38,475,761.69 |
56,667,967.21 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
454,700.12 |
[849,177.25] |
1,474,622.14 |
|
Financial Costs |
[18,800.04] |
[23,978.11] |
[79,490.19] |
|
Profit / [Loss] before Income
Tax |
435,900.08 |
[873,155.36] |
1,395,131.95 |
|
Income Tax |
[135,782.98] |
- |
[311,352.63] |
|
|
|
|
|
|
Net Profit / [Loss] |
300,117.10 |
[873,155.36] |
1,083,779.32 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.50 |
1.85 |
1.56 |
|
QUICK RATIO |
TIMES |
2.27 |
1.67 |
1.47 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
65.53 |
31.51 |
31.45 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.63 |
2.08 |
2.21 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
16.56 |
21.83 |
11.82 |
|
INVENTORY TURNOVER |
TIMES |
22.05 |
16.72 |
30.88 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
73.33 |
87.45 |
69.28 |
|
RECEIVABLES TURNOVER |
TIMES |
4.98 |
4.17 |
5.27 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
69.58 |
116.33 |
124.26 |
|
CASH CONVERSION CYCLE |
DAYS |
20.31 |
(7.06) |
(43.16) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
74.99 |
73.37 |
77.76 |
|
SELLING & ADMINISTRATION |
% |
23.99 |
29.03 |
23.24 |
|
INTEREST |
% |
0.05 |
0.06 |
0.14 |
|
GROSS PROFIT MARGIN |
% |
25.12 |
26.77 |
25.87 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.12 |
(2.26) |
2.63 |
|
NET PROFIT MARGIN |
% |
0.74 |
(2.32) |
1.93 |
|
RETURN ON EQUITY |
% |
11.46 |
(37.67) |
33.96 |
|
RETURN ON ASSET |
% |
1.95 |
(4.84) |
4.28 |
|
EARNING PER SHARE |
BAHT |
15.01 |
(43.66) |
54.19 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.83 |
0.87 |
0.87 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.88 |
6.78 |
6.94 |
|
TIME INTEREST EARNED |
TIMES |
24.19 |
(35.41) |
18.55 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
7.62 |
(33.03) |
|
|
OPERATING PROFIT |
% |
(153.55) |
(157.59) |
|
|
NET PROFIT |
% |
134.37 |
(180.57) |
|
|
FIXED ASSETS |
% |
(48.24) |
(33.17) |
|
|
TOTAL ASSETS |
% |
(14.58) |
(28.85) |
|
ANNUAL GROWTH: ACCEPTABLE
An annual sales growth is 7.62%. Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
25.12 |
Impressive |
Industrial
Average |
10.93 |
|
Net Profit Margin |
0.74 |
Acceptable |
Industrial
Average |
1.45 |
|
Return on Assets |
1.95 |
Satisfactory |
Industrial
Average |
2.05 |
|
Return on Equity |
11.46 |
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 25.12%. 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 0.74%.
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 1.95%.
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 11.46%, 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.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
EXCELLENT
LIQUIDITY RATIO
|
Current Ratio |
2.50 |
Impressive |
Industrial
Average |
1.31 |
|
Quick Ratio |
2.27 |
|
|
|
|
Cash Conversion Cycle |
20.31 |
|
|
|
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 2.5 times in 2013, increased from 1.85 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 2.27 times in 2013,
increased from 1.67 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 21 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.83 |
Acceptable |
Industrial
Average |
0.66 |
|
Debt to Equity Ratio |
4.88 |
Risky |
Industrial
Average |
2.06 |
|
Times Interest Earned |
24.19 |
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 24.19 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 0.83 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
65.53 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
2.63 |
Impressive |
Industrial
Average |
1.41 |
|
Inventory Conversion Period |
16.56 |
|
|
|
|
Inventory Turnover |
22.05 |
Impressive |
Industrial
Average |
4.18 |
|
Receivables Conversion Period |
73.33 |
|
|
|
|
Receivables Turnover |
4.98 |
Impressive |
Industrial
Average |
2.43 |
|
Payables Conversion Period |
69.58 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.98 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 22 days at the
end of 2012 to 17 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 16.72 times in year 2012 to 22.05
times in year 2013.
The company's Total Asset Turnover is calculated as 2.63 times and 2.08
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.60.83 |
|
UK Pound |
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.78.66 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
NIT |
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.