MIRA INFORM REPORT
|
Report No. : |
309143 |
|
Report Date : |
27.02.2015 |
IDENTIFICATION DETAILS
|
Name : |
VARIN IMPORT-EXPORT CO., LTD. |
|
|
|
|
Registered Office : |
57/22 Moo 5, Soi
Thamsiri, Bangna-Trad Road,
K.M. 26, T. Bangsaothong, A. Bangsaothong, Samutprakarn 10540 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
19.10.2000 |
|
|
|
|
Com. Reg. No.: |
0115543006640 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in international trading
business to import,
distribute, export and
re-export various types
of food machinery
and equipment. |
|
|
|
|
No. of Employees : |
7 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
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 – 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
VARIN
IMPORT-EXPORT CO., LTD.
SUMMARY
BUSINESS ADDRESS : 57/22 MOO 5,
SOI THAMSIRI, BANGNA-TRAD ROAD,
K.M. 26, T.
BANGSAOTHONG, A. BANGSAOTHONG,
SAMUTPRAKARN 10540,
THAILAND
TELEPHONE : [66] 2708-5522-7
FAX : [66] 2708-5528
E-MAIL ADDRESS : preecha@varinfood.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2000
REGISTRATION NO. : 0115543006640
TAX ID NO. : 3030172006
CAPITAL REGISTERED : BHT.
1,000,000
CAPITAL PAID-UP : BHT.
1,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. VIRAT SUPHASIT,
THAI
MANAGING DIRECTOR
NO. OF STAFF : 7
LINES OF BUSINESS : FOOD
MACHINERY AND EQUIPMENT
IMPORTER, 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 October 19,
2000 as a
private limited company under
the registered name VARIN
IMPORT- EXPORT CO., LTD., by
Thai groups, with
the objective to be
engaged in international trading
business in food machinery and equipment. It currently
employs 7 staff.
The subject’s registered
address is 57/22
Moo 5, Soi
Thamsiri, Bangna-Trad Road, K.M. 26, T. Bangsaothong, A.
Bangsaothong, Samutprakarn 10540, and
this is
the subject’s current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Virat Suphasit |
|
Thai |
66 |
|
Mrs. Veerawan Suphasit |
|
Thai |
59 |
AUTHORIZED PERSON
Both of the
above directors can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Virat Suphasit is
the Managing Director.
He is Thai
nationality with the
age of 66 years
old.
Mr. Preecha Phuenghua is
the Deputy Managing
Director / Sales & Marketing
Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in international trading
business to import,
distribute, export and
re-export various types
of food machinery
and equipment.
PURCHASE
The products are
purchased from both
domestic and overseas
suppliers, mainly in
Republic of China,
Germany and Taiwan.
MAJOR SUPPLIER
Varin Food Machinery
Co., Ltd. : Thailand
SALES [LOCAL]
The products are
sold locally to
wholesalers, manufacturers and
end-users.
EXPORT
The products are
exported and re-exported
to Vietnam, Laos,
India, Malaysia, Myanmar
and Indonesia.
RELATED AND
AFFILIATED COMPANIES
Varin Food Machinery
Co., Ltd.
Business Type :
Manufacturer and distributor
of food machinery
and equipment
Seal Precision Co.,
Ltd.
Business Type :
Manufacturer and distributor
of metal parts
and tooling parts
for
food machinery
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 7 staff.
LOCATION DETAILS
The premise is
rented for administrative office
and warehouse at
the heading address.
Premise is located
in provincial, on the
outskirt of Bangkok.
COMMENT
The subject’s operating
performance in 2013
was satisfactory with
an increase in both
sales revenue and
net profit comparing
to the same
period of the
previous years. This
was mainly due
to high demand
of the products
from food manufacturing
industry of both
local and overseas.
Its business outlook
is promising in
line with the
improvement and growth
of food industry.
FINANCIAL INFORMATION
The capital was registered at
Bht. 1,000,000 divided into 10,000
shares of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Virat Suphasit Nationality: Thai Address : 34/36
Moo 16, T. Bangkaew, A. Bangplee,
Samutprakarn |
2,000 |
20.00 |
|
Mrs. Veerawan Suphasit Nationality: Thai Address : 34/36
Moo 16, T. Bangkaew, A. Bangplee,
Samutprakarn |
2,000 |
20.00 |
|
Ms. Varintra Suphasit Nationality: Thai Address : 34/36
Moo 16, T. Bangkaew, A. Bangplee,
Samutprakarn |
2,000 |
20.00 |
|
Ms. Rattanawan Suphasit Nationality: Thai Address : 34/36
Moo 16, T. Bangkaew, A. Bangplee,
Samutprakarn |
2,000 |
20.00 |
|
Mr. Preeya Phuenghua Nationality: Thai Address : 30/17
Moo 17, T. Bangpleeyai, A.
Bangplee, Samutprakarn |
1,000 |
10.00 |
|
|
|
|
|
Mr. Prasong Anantariyavech Nationality: Thai Address : 300
Soi Khemanarumit, Bangsue,
Bangkok |
1,000 |
10.00 |
Total Shareholders : 6
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
10,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
6 |
10,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Ms. Porntip Tangpongbundit No.
3707
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 |
5,674,011.15 |
1,704,472.84 |
1,170,556.44 |
|
Trade Accounts Receivable
|
1,062,580.00 |
1,107,698.68 |
1,107,698.68 |
|
Other Receivable |
137,559.70 |
137,559.70 |
137,559.70 |
|
Other Current Assets
|
1,281,964.17 |
332,533.05 |
2,272,485.14 |
|
|
|
|
|
|
Total Current Assets
|
8,156,115.02 |
3,282,264.27 |
4,688,299.96 |
|
Long-term Lending to Person or Related Company |
7,716,500.51 |
700,000.00 |
700,000.00 |
|
Total Assets |
15,872,615.53 |
3,982,264.27 |
5,388,299.96 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts Payable
|
7,893,007.36 |
180,975.70 |
166,220.25 |
|
Other Payable |
95,333.77 |
192,015.12 |
1,291,134.53 |
|
Deposits Received from Customer |
4,071,548.81 |
- |
- |
|
Other Current Liabilities |
1,067.55 |
216.86 |
66,398.55 |
|
|
|
|
|
|
Total Current Liabilities |
12,060,957.49 |
373,207.68 |
1,523,753.33 |
|
Long-term Loan from Person or Related Company |
12,655.08 |
11,416.60 |
- |
|
Total Liabilities |
12,073,612.57 |
384,624.28 |
1,523,753.33 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 10,000 shares |
1,000,000.00 |
1,000,000.00 |
1,000,000.00 |
|
|
|
|
|
|
Capital Paid |
1,000,000.00 |
1,000,000.00 |
1,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
2,799,002.96 |
2,597,639.99 |
2,864,546.63 |
|
Total Shareholders' Equity |
3,799,002.96 |
3,597,639.99 |
3,864,546.63 |
|
Total Liabilities & Shareholders' Equity |
15,872,615.53 |
3,982,264.27 |
5,388,299.96 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
19,128,605.14 |
173,689.52 |
19,487,090.17 |
|
Other Income |
24,023.02 |
19,621.59 |
138,351.02 |
|
Total Revenues |
19,152,628.16 |
193,311.11 |
19,625,441.19 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
16,999,845.65 |
141,140.00 |
16,665,662.20 |
|
Selling Expenses |
1,183,534.21 |
38,563.49 |
690,886.76 |
|
Administrative Expenses |
767,885.33 |
280,514.26 |
1,268,996.82 |
|
Other Expenses |
- |
- |
57,953.01 |
|
Total Expenses |
18,951,265.19 |
460,217.75 |
18,683,498.79 |
|
Profit / [Loss] before Income Tax |
201,362.97 |
[266,906.64] |
941,942.40 |
|
Income Tax |
- |
- |
[118,824.75] |
|
|
|
|
|
|
Net Profit / [Loss] |
201,362.97 |
[266,906.64] |
823,117.65 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.68 |
8.79 |
3.08 |
|
QUICK RATIO |
TIMES |
0.57 |
7.90 |
1.59 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
- |
- |
- |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.21 |
0.04 |
3.62 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
INVENTORY TURNOVER |
TIMES |
- |
- |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
20.28 |
2,327.77 |
20.75 |
|
RECEIVABLES TURNOVER |
TIMES |
18.00 |
0.16 |
17.59 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
169.47 |
468.02 |
3.64 |
|
CASH CONVERSION CYCLE |
DAYS |
(149.19) |
1,859.76 |
17.11 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
88.87 |
81.26 |
85.52 |
|
SELLING & ADMINISTRATION |
% |
10.20 |
183.71 |
10.06 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
11.25 |
30.04 |
15.19 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.05 |
(153.67) |
4.83 |
|
NET PROFIT MARGIN |
% |
1.05 |
(153.67) |
4.22 |
|
RETURN ON EQUITY |
% |
5.30 |
(7.42) |
21.30 |
|
RETURN ON ASSET |
% |
1.27 |
(6.70) |
15.28 |
|
EARNING PER SHARE |
BAHT |
20.14 |
(26.69) |
82.31 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.76 |
0.10 |
0.28 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.18 |
0.11 |
0.39 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
10,913.10 |
(99.11) |
|
|
OPERATING PROFIT |
% |
(175.44) |
(128.34) |
|
|
NET PROFIT |
% |
175.44 |
(132.43) |
|
|
FIXED ASSETS |
% |
- |
- |
|
|
TOTAL ASSETS |
% |
298.58 |
(26.09) |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 10913.1%. Turnover has increased from THB
PROFITABILITY : RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.25 |
Deteriorated |
Industrial Average |
43.19 |
|
Net Profit Margin |
1.05 |
Deteriorated |
Industrial Average |
4.50 |
|
Return on Assets |
1.27 |
Deteriorated |
Industrial Average |
7.04 |
|
Return on Equity |
5.30 |
Deteriorated |
Industrial Average |
16.65 |
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 11.25%. 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 1.05%.
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 1.27%.
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 5.3%.
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 |
0.68 |
Risky |
Industrial Average |
1.63 |
|
Quick Ratio |
0.57 |
|
|
|
|
Cash Conversion Cycle |
(149.19) |
|
|
|
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 0.68 times in 2013, decrease from 8.79 times, then the company may not be
efficiently using its current assets. 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 0.57 times in 2013,
decrease from 7.9 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 -150 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.76 |
Acceptable |
Industrial Average |
0.57 |
|
Debt to Equity Ratio |
3.18 |
Risky |
Industrial Average |
1.32 |
|
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 0.76 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 |
- |
|
Industrial Average |
- |
|
Total Assets Turnover |
1.21 |
Satisfactory |
Industrial Average |
1.56 |
|
Inventory Conversion Period |
- |
|
|
|
|
Inventory Turnover |
- |
|
Industrial Average |
3.70 |
|
Receivables Conversion Period |
20.28 |
|
|
|
|
Receivables Turnover |
18.00 |
Impressive |
Industrial Average |
3.87 |
|
Payables Conversion Period |
169.47 |
|
|
|
The company's Account Receivable Ratio is calculated as 18.00 and
The company's Total Asset Turnover is calculated as 1.21 times and 0.04
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 Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.94 |
|
|
1 |
Rs.96.24 |
|
Euro |
1 |
Rs.70.38 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
TPT |
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.