MIRA INFORM REPORT
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Report No. : |
355640 |
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Report Date : |
22.12.2015 |
IDENTIFICATION DETAILS
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Name : |
SANGTAVEE TANNERY LIMITED PARTNERSHIP |
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Registered Office : |
1089 Moo 6, Sukhumvit Road, T. Bangpoomai, A. Muang, Samutprakarn 10280 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
16.01.1991 |
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Com. Reg. No.: |
0113534000110 |
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Legal Form : |
Limited Partnership |
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Line of Business : |
Manufacturer,
Distributor and Exporter of Tannery |
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No. of Employees : |
60 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Thailand |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
THAILAND - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise
economy, and generally pro-investment policies Thailand has historically had a
strong economy due in part to competitive industrial and agriculture exports -
mostly electronics, agricultural commodities, automobiles and parts, and
processed foods. The economy experienced slow growth and declining exports in
2014, in part due to domestic political turmoil and sluggish global demand.
With full employment, Thailand attracts an estimated 2-4 million migrant
workers from neighboring countries, and faces labor shortages. Following the
May 2014 coup d'etat, tourism decreased 6-7% but is beginning to recover. The
household debt to GDP ratio is over 80%. 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 baht has
remained stable.
|
Source
: CIA |
Company
name
SANGTAVEE TANNERY LIMITED
PARTNERSHIP
SUMMARY
BUSINESS
ADDRESS : 1089
MOO 6, SUKHUMVIT
ROAD, T. BANGPOOMAI,
A.
MUANG, SAMUTPRAKARN 10280,
THAILAND
TELEPHONE : [66] 2323-1315-6
FAX :
[66] 2313-1315
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1991
REGISTRATION
NO. : 0113534000110
TAX
ID NO. : 3272026013
CAPITAL REGISTERED : BHT. 10,000,000
CAPITAL PAID-UP : BHT.
10,000,000
SHAREHOLDER’S PROPORTION : THAI
: 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : LIMITED
PARTNERSHIP
EXECUTIVE : MR. TAWEESAK WONGSANGANAN, THAI
MANAGING PARTNER
NO.
OF STAFF : 60
LINES OF
BUSINESS : TANNERY
MANUFACTURER, DISTRIBUTOR AND EXPORTER
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 January 16,
1991 as a
limited partnership under the
name style SANGTAVEE TANNERY
LIMITED PARTNERSHIP by
Thai partners, with
the business objective
to be engaged in
tanning business. It
currently employs approximately
60 staff.
The
subject’s registered address
is 1089 Moo
6, Sukhumvit Road,
T. Bangpoomai,
A. Muang,
Samutprakarn 10280, and
this is the
subject’s current operation
address.
AUTHORIZED
PERSON
Mr. Taweesak Wongsanganan
Mr. Chaiyaporn Wongsanganan
One of the
above partners can
sign on behalf
of the subject
with seal affixed.
MANAGEMENT
Mr. Taweesak Wongsanganan is
the Managing Partner.
He is Thai
nationality with the
age of 57 years
old.
BUSINESS
OPERATIONS
The subject is engaged in tanning
business to manufacture,
distribute and export finished leather
for furniture, auto
seats and other
industries including pet
toy products.
PURCHASE
Raw
materials mainly raw
hide [cow and buffalo]
and tanning chemical
are purchased from suppliers both domestic
and overseas in
Republic of China,
Indonesia, Malaysia and
India.
SALES
The
products are sold
to manufacturers and
end-users both local
and overseas in
Japan, U.S.A., and
the countries in
Europe.
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 credit 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
N/A
EMPLOYMENT
The
subject employs approximately
60 staff.
LOCATION
DETAILS
The
premise is owned
for administrative office
and tannery at
the heading address.
Premise is located in
provincial/tanning
industrial area.
COMMENT
The
subject operates as
a tannery. The
products have been
served to various
industries both local
and overseas. With
over two decades,
the subject has
manifested continuous success
as well as
maintaining its ground
in the industry.
Despite
slow market consumption
in 2014, the
subject also achieved
a moderate performance. Its
sales was derived
from promising industry
such as auto
seat production.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 10,000,000
which was carried by 3 persons
as followed:
Name Age Amount
Mr. Taweesak Wongsanganan [57] Bht.
4,500,000 [unlimited partner]
Address : 1089 Moo
6, Sukhumvit Rd.,
T. Bangpoomai,
A. Muang,
Samutprakarn
Mr. Chaiyaporn Wongsanganan [56] Bht.
4,500,000 [unlimited partner]
Address : 3133/51-52 Sukhumvit
Road,
Bangna, Prakanong,
Bangkok
Mrs. Pensri Wongsanganan [56] Bht. 1,000,000
Address : 1089 Moo
6, Sukhumvit Rd.,
T. Bangpoomai,
A. Muang,
Samutprakarn
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO.
Mrs. Thanhatai Supakasem No.
5394
BALANCE
SHEET [BAHT]
The
latest financial figures
published for December
31, 2014, 2013
& 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents
|
22,078,155.04 |
7,268,904.72 |
6,810,589.38 |
|
Trade Accounts & Other
Receivable |
6,472,231.39 |
10,186,932.05 |
11,570,758.84 |
|
Inventories |
14,023,987.95 |
11,846,323.30 |
18,213,058.96 |
|
Other Current Assets
|
923,924.91 |
984,200.24 |
1,100,775.36 |
|
|
|
|
|
|
Total Current Assets
|
43,498,299.29 |
30,286,360.31 |
37,695,182.54 |
|
Fixed Assets |
16,579,893.33 |
14,429,574.13 |
10,686,161.33 |
|
Total Assets |
60,078,192.62 |
44,715,934.44 |
48,381,343.87 |
LIABILITIES & SHAREHOLDERS' EQUITY
[BAHT]
|
Current Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Trade Accounts
& Other Payable |
22,973,404.93 |
21,968,336.78 |
26,331,182.29 |
|
Short-term Loan |
14,530,000.00 |
- |
- |
|
Accrued Income
Tax |
596,389.91 |
838,654.02 |
885,972.94 |
|
|
|
|
|
|
Total Current
Liabilities |
38,099,794.84 |
22,806,990.80 |
27,217,155.23 |
|
Total Liabilities |
38,099,794.84 |
22,806,990.80 |
27,217,155.23 |
|
|
|
|
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Shareholders' Equity |
|
|
|
|
|
|
|
|
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Capital Paid |
10,000,000.00 |
10,000,000.00 |
10,000,000.00 |
|
Retained Earning - Unappropriated
[Deficit] |
14,478,397.78 |
14,408,943.64 |
13,664,188.64 |
|
Less: Dividend |
[2,500,000.00] |
[2,500,000.00] |
[2,500,000.00] |
|
|
|
|
|
|
Total Shareholders' Equity |
21,978,397.78 |
21,908,943.64 |
21,164,188.64 |
|
Total Liabilities & Shareholders' Equity |
60,078,192.62 |
44,715,934.44 |
48,381,343.87 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
167,855,635.66 |
183,769,013.77 |
156,400,839.57 |
|
Other Income |
1,501,487.34 |
1,032,932.58 |
87,909.00 |
|
Total Revenues |
169,357,123.00 |
184,801,946.35 |
156,488,748.57 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
162,386,931.79 |
177,166,152.24 |
150,154,324.15 |
|
Selling Expenses |
1,486,519.44 |
1,356,918.25 |
598,197.24 |
|
Administrative Expenses |
2,285,397.04 |
2,051,959.74 |
1,905,997.55 |
|
Loss on Exchange
Rate |
255,904.78 |
49,472.79 |
7,269.21 |
|
Total Expenses |
166,414,753.05 |
180,624,503.02 |
152,665,788.15 |
|
|
|
|
|
|
Profit / [Loss] before Income
Tax |
2,942,369.95 |
4,177,443.33 |
3,822,960.42 |
|
Income Tax |
[596,389.91] |
[838,654.02] |
[885,972.94] |
|
Net Profit / [Loss] |
2,345,980.04 |
3,338,789.31 |
2,936,987.48 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.14 |
1.33 |
1.38 |
|
QUICK RATIO |
TIMES |
0.75 |
0.77 |
0.68 |
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|
|
|
|
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ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
10.12 |
12.74 |
14.64 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.79 |
4.11 |
3.23 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
31.52 |
24.41 |
44.27 |
|
INVENTORY TURNOVER |
TIMES |
11.58 |
14.96 |
8.24 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
14.07 |
20.23 |
27.00 |
|
RECEIVABLES TURNOVER |
TIMES |
25.93 |
18.04 |
13.52 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
51.64 |
45.26 |
64.01 |
|
CASH CONVERSION CYCLE |
DAYS |
(6.04) |
(0.62) |
7.27 |
|
|
|
|
|
|
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PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
96.74 |
96.41 |
96.01 |
|
SELLING & ADMINISTRATION |
% |
2.25 |
1.85 |
1.60 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
4.15 |
4.16 |
4.05 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.75 |
2.27 |
2.44 |
|
NET PROFIT MARGIN |
% |
1.40 |
1.82 |
1.88 |
|
RETURN ON EQUITY |
% |
10.67 |
15.24 |
13.88 |
|
RETURN ON ASSET |
% |
3.90 |
7.47 |
6.07 |
|
EARNING PER SHARE |
BAHT |
23.46 |
33.39 |
29.37 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.63 |
0.51 |
0.56 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.73 |
1.04 |
1.29 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(8.66) |
17.50 |
|
|
OPERATING PROFIT |
% |
(29.57) |
9.27 |
|
|
NET PROFIT |
% |
(29.74) |
13.68 |
|
|
FIXED ASSETS |
% |
14.90 |
35.03 |
|
|
TOTAL ASSETS |
% |
34.36 |
(7.58) |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -8.66%. Turnover has decreased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
4.15 |
Impressive |
Industrial
Average |
(0.25) |
|
Net Profit Margin |
1.40 |
Acceptable |
Industrial
Average |
2.29 |
|
Return on Assets |
3.90 |
Impressive |
Industrial
Average |
2.97 |
|
Return on Equity |
10.67 |
Satisfactory |
Industrial
Average |
10.95 |
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 4.15%. 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 1.4%. 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. Return on Assets ratio is
3.9%, 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. When compared with the
industry average, it was lower, the company's figure is 10.67%.
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 |
1.14 |
Satisfactory |
Industrial
Average |
1.19 |
|
Quick Ratio |
0.75 |
|
|
|
|
Cash Conversion Cycle |
(6.04) |
|
|
|
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 1.14 times in 2014, decreased from 1.33 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 0.75 times in 2014,
decreased from 0.77 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 -7 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.63 |
Impressive |
Industrial Average |
0.71 |
|
Debt to Equity Ratio |
1.73 |
Satisfactory |
Industrial Average |
2.47 |
|
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 0.63 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 |
10.12 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
2.79 |
Impressive |
Industrial Average |
1.30 |
|
Inventory Conversion Period |
31.52 |
|
|
|
|
Inventory Turnover |
11.58 |
Impressive |
Industrial
Average |
2.46 |
|
Receivables Conversion Period |
14.07 |
|
|
|
|
Receivables Turnover |
25.93 |
Impressive |
Industrial
Average |
5.30 |
|
Payables Conversion Period |
51.64 |
|
|
|
The company's Account Receivable Ratio is calculated as 25.93 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 increased from 24 days at the
end of 2013 to 32 days at the end of 2014. This represents a negative trend.
And Inventory turnover has decreased from 14.96 times in year 2013 to 11.58 times
in year 2014.
The company's Total Asset Turnover is calculated as 2.79 times and 4.11
times in 2014 and 2013 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.66.32 |
|
|
1 |
Rs.98.99 |
|
Euro |
1 |
Rs.72.13 |
|
Thai Baht |
1 |
Rs.1.84 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
AMR |
|
|
|
|
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.