MIRA INFORM REPORT
|
Report No. : |
308942 |
|
Report Date : |
25.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
HANDICRAFTS ART EMPORIUM CO., LTD. |
|
|
|
|
Registered Office : |
Room B6, B7, B11, B12 Silom
Village Trade Centre, Zone B,
286/1 Silom Road,
Silom, Bangrak, Bangkok 10500,
|
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
17.08.2005 |
|
|
|
|
Com. Reg. No.: |
0105548107096 |
|
|
|
|
Legal Form : |
Private Limited
Company |
|
|
|
|
Line of Business : |
Distribute various
kinds of handicrafts
and souvenir products |
|
|
|
|
No. of Employee : |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
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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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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
HANDICRAFTS ART EMPORIUM CO., LTD.
SUMMARY
BUSINESS ADDRESS : ROOM B6, B7, B11, B12 SILOM
VILLAGE TRADE CENTRE,
ZONE
B, 286/1 SILOM
ROAD, SILOM,
BANGRAK,
BANGKOK 10500, THAILAND
TELEPHONE : [66] 2611-0334
FAX :
-
E-MAIL ADDRESS : -
REGISTRATION ADDRESS : SAME AS
BUSINESS ADDRESS
ESTABLISHED : 2005
REGISTRATION NO. : 0105548107096
TAX ID NO. : 3031891944
CAPITAL REGISTERED : BHT. 4,000,000
CAPITAL PAID-UP : BHT. 4,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.25%
INDIAN
: 48.75%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : -
NO. OF STAFF : -
LINES OF BUSINESS : HANDICRAFTS AND
SOUVENIR PRODUCTS
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 August 17, 2005
as a private
limited company under
the registered name
HANDICRAFTS ART EMPORIUM
CO., LTD., by Thai
and Indian groups,
with the business objective
to distribute various kinds
of handicrafts and souvenir
products.
The subject’s registered
address is Room
B6, B7, B11, B12 Silom Village
Trade Centre, Zone B, 286/1 Silom Road, Silom, Bangrak,
Bangkok 10500, and this is the
subject’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms. Paranee Supajitsawad |
|
Thai |
45 |
|
Mr. Reyaz Ahmad
Mir |
|
Indian |
44 |
|
Mr. Feroz Mir |
|
Indian |
38 |
AUTHORIZED
PERSON
Anyone of
the above directors
can sign on behalf of
the subject with
company’s affixed.
LOCATION
DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in a prime
commercial area.
Branches and Showrooms:
- Room Lobby 1,
Holiday Inn Hotel,
981 Silom Road,
Silom, Bangrak, Bangkok
10500.
- 1st Floor,
Gaddara, Darathewi Hotel,
51/4 Moo 1, Chiangmai-sankampaeng Road,
T. Thasala, A. Muang, Chiangmai
50000.
- 324/19 Surawong
Road, Siphya, Bangrak,
Bangkok 10500.
- 2nd Floor,
Lobby Zone, Shangri-Lawings Building,
89 Soi Wad
Suanplu,
Charoenkrung Road,
Bangrak, Bangkok 10500.
Note:
The subject refused to
release company’s information
during investigation.
COMMENT
The subject was
established in 2005. Since
its establishment, subject
had slow business for
many consecutive years.
However, its business
has gradually improved
in the year
2013 but its
business has grown
at slow pace.
FINANCIAL
INFORMATION
The capital was
registered at Bht. 2,000,000
divided into 20,000
shares of Bht. 100
each with fully
paid.
On July 17,
2006, the registered
capital was increased
to Bht. 4,000,000 divided
into 40,000 shares of Bht.
100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
[as at
April 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms.
Paranee Supajitsawad Nationality: Thai Address :
145/1 Moo 9,
T. Suanluang, A. Krathumbaen, Samutsakorn
|
20,500 |
51.25 |
|
Mr. Reyaz Ahmad
Mir Nationality: Indian Address :
3/7 Nares Road,
Siphaya, Bangrak, Bangkok |
10,000 |
25.00 |
|
Mr. Feroz Ahmad
Mir Nationality: Indian Address :
3/7 Nares Road,
Siphaya, Bangrak, Bangkok |
9,500 |
23.75 |
Total Shareholders
: 3
Share Structure
[as at
April 30, 2014]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
20,500 |
51.25 |
|
Foreign - Indian |
2 |
19,500 |
48.75 |
|
Total |
3 |
40,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mrs. Saowanee Jungjaroen
No. 5059
BALANCE
SHEET [BAHT]
The latest financial
figures published for
December 31, 2013,
2012 & 2011
were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
542,076.20 |
559,937.42 |
462,082.22 |
|
Trade Accounts
& Other Receivable |
245,602.92 |
298,157.27 |
134,913.07 |
|
Inventories |
3,777,301.00 |
1,618,000.00 |
147,260.00 |
|
|
|
|
|
|
Total Current
Assets |
4,564,980.12 |
2,476,094.69 |
744,255.29 |
|
Equipment |
8,297.22 |
10,663.66 |
94.55 |
|
Other Non-current
Assets |
611,387.14 |
432,305.14 |
45,000.00 |
|
Total Assets |
5,184,664.48 |
2,919,063.49 |
789,349.84 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade
Accounts & Other
Payable |
4,942,831.97 |
3,169,911.77 |
827,498.27 |
|
|
|
|
|
|
Total Current Liabilities |
4,942,831.97 |
3,169,911.77 |
827,498.27 |
|
Long-term
Loan |
1,259,775.84 |
1,259,775.84 |
734,941.69 |
|
Employee
Benefits Obligation |
62,583.59 |
65,694.08 |
- |
|
Total Liabilities
|
6,265,191.40 |
4,495,381.69 |
1,562,439.96 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100 par
value Authorized & issued share
capital 40,000
shares |
4,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
|
|
|
|
|
Capital Paid |
4,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning
- Unappropriated [Deficit] |
[5,080,526.92] |
[5,576,318.20] |
[4,773,090.12] |
|
|
|
|
|
|
Total Shareholders'
Equity |
[1,080,526.92] |
[1,576,318.20] |
[773,090.12] |
|
Total
Liabilities & Shareholders' Equity |
5,184,664.48 |
2,919,063.49 |
789,349.84 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
10,655,058.58 |
2,898,431.46 |
632,279.22 |
|
Other Income |
1,892.69 |
1,406.01 |
475.32 |
|
Total Revenues |
10,656,951.27 |
2,899,837.47 |
632,754.54 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of
Goods Sold |
5,158,503.05 |
1,449,470.44 |
219,816.04 |
|
Selling Expenses |
55,046.73 |
549,345.79 |
- |
|
Administrative Expenses |
4,947,610.21 |
1,685,566.28 |
461,476.92 |
|
Total Expenses
|
10,161,159.99 |
3,684,382.51 |
681,292.96 |
|
Net Profit / [Loss] |
495,791.28 |
[784,545.04] |
[48,538.42] |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.92 |
0.78 |
0.90 |
|
QUICK RATIO |
TIMES |
0.16 |
0.27 |
0.72 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS
TURNOVER |
TIMES |
1,284.17 |
271.80 |
6,687.25 |
|
TOTAL ASSETS
TURNOVER |
TIMES |
2.06 |
0.99 |
0.80 |
|
INVENTORY
CONVERSION PERIOD |
DAYS |
267.27 |
407.44 |
244.52 |
|
INVENTORY
TURNOVER |
TIMES |
1.37 |
0.90 |
1.49 |
|
RECEIVABLES
CONVERSION PERIOD |
DAYS |
8.41 |
37.55 |
77.88 |
|
RECEIVABLES
TURNOVER |
TIMES |
43.38 |
9.72 |
4.69 |
|
PAYABLES
CONVERSION PERIOD |
DAYS |
349.74 |
798.23 |
1,374.04 |
|
CASH CONVERSION
CYCLE |
DAYS |
(74.06) |
(353.25) |
(1,051.64) |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS
SOLD |
% |
48.41 |
50.01 |
34.77 |
|
SELLING &
ADMINISTRATION |
% |
46.95 |
77.11 |
72.99 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT
MARGIN |
% |
51.60 |
50.04 |
65.31 |
|
NET PROFIT MARGIN
BEFORE EX. ITEM |
% |
4.65 |
(27.07) |
(7.68) |
|
NET PROFIT MARGIN |
% |
4.65 |
(27.07) |
(7.68) |
|
RETURN ON EQUITY |
% |
- |
- |
- |
|
RETURN ON ASSET |
% |
9.56 |
(26.88) |
(6.15) |
|
EARNING PER SHARE |
BAHT |
12.39 |
(19.61) |
(1.21) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
1.21 |
1.54 |
1.98 |
|
DEBT TO EQUITY
RATIO |
TIMES |
(5.80) |
(2.85) |
(2.02) |
|
TIME INTEREST
EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
267.61 |
358.41 |
|
|
OPERATING PROFIT |
% |
(163.19) |
1,516.34 |
|
|
NET PROFIT |
% |
163.19 |
(1,516.34) |
|
|
FIXED ASSETS |
% |
(22.19) |
11,178.33 |
|
|
TOTAL ASSETS |
% |
77.61 |
269.81 |
|
ANNUAL GROWTH : SATISFACTORY
An annual sales
growth is 267.61%. Turnover has increased from THB
PROFITABILITY : SATISFACTORY
PROFITABILITY RATIO
|
Gross Profit
Margin |
51.60 |
Acceptable |
Industrial Average |
95.09 |
|
Net Profit Margin |
4.65 |
Impressive |
Industrial Average |
0.83 |
|
Return on Assets |
9.56 |
Impressive |
Industrial Average |
1.06 |
|
Return on Equity |
- |
|
Industrial Average |
3.48 |
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 51.6%. 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 4.65%, 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 9.56%, 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 |
0.92 |
Risky |
Industrial Average |
1.36 |
|
Quick Ratio |
0.16 |
|
|
|
|
Cash Conversion
Cycle |
(74.06) |
|
|
|
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 0.92 times in 2013,
increased from 0.78 times, then the company may have problems meeting its
short-term obligations. 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 0.16 times in 2013, decreased from 0.27
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 -75 days.
Trend of the average competitors in the same
industry for last 5 years
Current Ratio Downtrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
1.21 |
Risky |
Industrial Average |
0.69 |
|
Debt to Equity
Ratio |
(5.80) |
Risky |
Industrial Average |
2.18 |
|
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 1.21 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 |
1,284.17 |
Impressive |
Industrial Average |
- |
|
Total Assets
Turnover |
2.06 |
Impressive |
Industrial Average |
1.28 |
|
Inventory
Conversion Period |
267.27 |
|
|
|
|
Inventory
Turnover |
1.37 |
Deteriorated |
Industrial Average |
3.78 |
|
Receivables
Conversion Period |
8.41 |
|
|
|
|
Receivables
Turnover |
43.38 |
Impressive |
Industrial Average |
3.65 |
|
Payables
Conversion Period |
349.74 |
|
|
|
The company's Account
Receivable Ratio is calculated as 43.38 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 407 days at the end of 2012 to 267 days at the end of 2013. This
represents a positive trend. And Inventory turnover has increased from 0.9
times in year 2012 to 1.37 times in year 2013.
The company's Total
Asset Turnover is calculated as 2.06 times and 0.99 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 Uptrend
Inventory Turnover Uptrend
Receivables
Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.27 |
|
|
1 |
Rs.96.21 |
|
Euro |
1 |
Rs.70.60 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
ANK |
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.