MIRA
INFORM REPORT
|
Report No. : |
301660 |
|
Report Date : |
07.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
FORT INDUSTRIAL COMPANY LIMITED |
|
|
|
|
Registered Office : |
369 Moo 4, T. Phrakasa, A. Muang, Samutprakarn 10540 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
30.10.2000 |
|
|
|
|
Com. Reg. No.: |
0115543006879 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged
in importing, distributing and
warehouse completing of
metal products |
|
|
|
|
No. of Employees : |
46 |
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 |
|
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
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
FORT INDUSTRIAL
COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 369
MOO 4, T. PHRAKASA,
A. MUANG,
SAMUTPRAKARN 10540,
THAILAND
TELEPHONE : [66] 081
315-8650, 089 008-8980,
2728-5361-6
FAX :
[66] 2728-5360
E-MAIL
ADDRESS : fort_ind@ksc.th.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2000
REGISTRATION
NO. : 0115543006879
TAX
ID NO. : 3030178442
CAPITAL REGISTERED : BHT. 50,000,000
CAPITAL PAID-UP : BHT.
50,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
CHINESE :
49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. LIU YUQIANG, CHINESE
MANAGING DIRECTOR
NO.
OF STAFF : 46
LINES
OF BUSINESS : METAL
PRODUCTS
IMPORTER AND
DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on October 30,
2000 as a
private limited company under
the name style
FORT INDUSTRIAL COMPANY
LIMITED by Thai
groups, to import and
distribute metal products
to local market.
It currently employs
46 staff.
The
subject’s registered address
was initially at 45/19
Moo 2, T. Bangkaew, A. Bangplee,
Samutprakarn 10540.
On February
27, 2009, its
registered address was
relocated to 369
Moo 4, T. Phrakasa,
A. Muang, Samutprakarn 10540,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Puthachart Winthasombat |
[x] |
Thai |
43 |
|
Mr. Liu Yuqiang |
|
Chinese |
52 |
|
Mrs. Hui Ling Liu |
[x] |
Chinese |
48 |
AUTHORIZED PERSON
Both of the above
directors [x] can jointly
sign on behalf of the subject
with company’s affixed.
MANAGEMENT
Mr. Liu Yuqiang
is the Managing
Director.
He is Chinese
nationality with the
age of 52
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing,
distributing and warehouse
completing of metal
products as the followings:
- High Carbon
Steel : SK5 [SK85],
SK7, SK 5H, SK 7H
-
Stainless
Steel with Spring
Temper : SUS301CSP,
SUS304CSP
-
Copper
& Phosphors Bronze
: C5191, C5210
-
Brass
: C2680
The subject also
provides slitting and
leveler shearing services
for machine parts,
automobile parts, mold & die
parts, electronic parts,
computer parts, digital
camera parts, agriculture machine
parts, spring and
etc.
PURCHASE
20% of raw
materials is purchased
from local suppliers.
IMPORT
80%
of its metal
products is imported
from Japan, Republic
of China and
Taiwan.
SALES
100% of its
products is sold
locally to manufacturers, wholesalers
and end-users.
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
for 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
L/C at sight
or T/T.
BANKING
Bank of Ayudhya
Public Co., Ltd.
EMPLOYMENT
The
subject currently employs
46 staff.
LOCATION DETAILS
The premise
is owned for
administrative office at
the heading address. Premise is
located in commercial/residential area.
Factory
I is located
at 45/20 Moo 2,
T. Bangkaew, A.
Bangplee, Samutprakarn 10540.
Factory
II is located
at 45/25 Moo 2, T.
Bangkaew, A. Bangplee,
Samutprakarn 10540.
COMMENT
Demand of
metal parts for industrial sector, such
as automobile, electric
appliance, machinery and
etc. had strongly
grown in line
with strong growth
of industrial sector
during the past
several months.
However,
subject’s business performance
has been slowing down
since 2013 causing
by economic crisis
in both domestic and overseas.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000
divided into 20,000
shares of Bht. 100
each.
The
capital was increased
later as following:
Bht. 6,000,000
on May 20,
2004
Bht.
10,000,000 on March
22, 2005
Bht. 30,000,000 on
December 25, 2006
Bht. 50,000,000 on
January 31, 2008
The
latest registered capital
was increased to
Bht. 50,000,000 divided into
500,000 shares of
Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
June 7, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Puthachart
Winthasombat Nationality: Thai Address : 369
Moo 4, T. Phrakasa, A. Muang,
Samutprakarn |
188,750 |
37.75 |
|
Mr. Liu
Yuqiang Nationality: Chinese Address : 369
Moo 4, T. Phrakasa, A. Muang,
Samutprakarn |
122,500 |
24.50 |
|
Mrs. Hui
Ling Liu Nationality: Chinese Address : 369
Moo 4, T. Phrakasa, A. Muang,
Samutprakarn |
122,500 |
24.50 |
|
Ms. Thitiya Tarapho Nationality: Thai Address : 369
Moo 4, T. Phrakasa, A. Muang,
Samutprakarn |
63,750 |
12.75 |
|
Mrs. Mallikamas Prasopsook Nationality: Thai Address : 369
Moo 4, T. Phrakasa, A. Muang,
Samutprakarn |
2,500 |
0.50 |
Total Shareholders : 5
Share Structure [as
at June 7,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
255,000 |
51.00 |
|
Foreign - Chinese |
2 |
245,000 |
49.00 |
|
Total |
5 |
500,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Numfon Kongrit
No. 5984
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 |
42,565,302.04 |
9,796,355.61 |
7,768,511.82 |
|
Trade Accounts &
Other Receivable |
23,162,487.45 |
18,035,372.18 |
21,555,754.73 |
|
Inventories |
34,712,235.50 |
33,436,124.08 |
22,073,608.15 |
|
|
|
|
|
|
Total Current Assets
|
100,440,024.99 |
61,267,851.87 |
51,397,874.70 |
|
|
|
|
|
|
Fixed Assets |
84,927,216.68 |
93,459,092.48 |
94,484,351.10 |
|
Other Non - current Assets |
82,710.28 |
82,710.28 |
82,710.28 |
|
Total Assets |
185,449,951.95 |
154,809,654.63 |
145,964,396.08 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
58,448,516.29 |
57,641,013.15 |
50,920,973.78 |
|
Current Portion of
Financial Lease Contract Liabilities |
109,596.76 |
249,240.60 |
387,570.60 |
|
Accrued Income Tax |
344,100.00 |
508,565.57 |
716,792.39 |
|
|
|
|
|
|
Total Current Liabilities |
58,902,213.05 |
58,398,819.32 |
52,025,336.77 |
|
Financial Lease Contract Liabilities, net |
- |
109,596.76 |
399,945.29 |
|
Long-term Loan |
60,164,335.18 |
33,281,088.29 |
33,281,088.29 |
|
Total Liabilities |
119,066,548.23 |
91,789,504.37 |
85,706,370.35 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 500,000 shares |
50,000,000.00 |
50,000,000.00 |
50,000,000.00 |
|
|
|
|
|
|
Capital Paid |
50,000,000.00 |
50,000,000.00 |
50,000,000.00 |
|
Retained Earning - Unappropriated [Deficit] |
16,383,403.72 |
13,020,150.26 |
10,258,565.73 |
|
Total Shareholders' Equity |
66,383,403.72 |
63,020,150.26 |
60,258,565.73 |
|
Total Liabilities &
Shareholders' Equity |
185,449,951.95 |
154,809,654.63 |
145,964,936.08 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
212,736,829.19 |
228,650,927.88 |
181,126,485.00 |
|
Service Income |
- |
- |
501,886.75 |
|
Other Income |
1,166,766.19 |
2,008,964.50 |
514,729.98 |
|
Total Revenues |
213,903,595.38 |
230,659,892.38 |
182,143,101.73 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
177,566,418.84 |
197,723,732.80 |
148,133,862.93 |
|
Cost of Services |
- |
- |
126,178.60 |
|
Selling Expenses |
1,219,120.78 |
2,857,538.60 |
2,698,821.13 |
|
Administrative Expenses |
30,886,067.30 |
26,467,529.46 |
28,524,163.00 |
|
Other Expenses |
- |
- |
17,077.82 |
|
Total Expenses |
209,670,606.92 |
227,048,800.86 |
179,500,103.48 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
4,232,988.46 |
3,611,091.52 |
2,642,998.25 |
|
Financial Cost |
[24,135.00] |
[24,135.00] |
[24,135.00] |
|
Profit / [Loss] before Income
Tax |
4,208,853.46 |
3,586,956.52 |
2,618,863.25 |
|
Income Tax |
[845,600.00] |
[825,371.99] |
[826,628.00] |
|
|
|
|
|
|
Net Profit / [Loss] |
3,363,253.46 |
2,761,584.53 |
1,792,235.25 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.71 |
1.05 |
0.99 |
|
QUICK RATIO |
TIMES |
1.12 |
0.48 |
0.56 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.50 |
2.45 |
1.92 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.15 |
1.48 |
1.24 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
71.35 |
61.72 |
54.34 |
|
INVENTORY TURNOVER |
TIMES |
5.12 |
5.91 |
6.72 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
39.74 |
28.79 |
43.32 |
|
RECEIVABLES TURNOVER |
TIMES |
9.18 |
12.68 |
8.43 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
120.14 |
106.41 |
125.36 |
|
CASH CONVERSION CYCLE |
DAYS |
(9.05) |
(15.89) |
(27.70) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
83.47 |
86.47 |
81.63 |
|
SELLING & ADMINISTRATION |
% |
15.09 |
12.83 |
17.19 |
|
INTEREST |
% |
0.01 |
0.01 |
0.01 |
|
GROSS PROFIT MARGIN |
% |
17.08 |
14.40 |
18.66 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.99 |
1.58 |
1.46 |
|
NET PROFIT MARGIN |
% |
1.58 |
1.21 |
0.99 |
|
RETURN ON EQUITY |
% |
5.07 |
4.38 |
2.97 |
|
RETURN ON ASSET |
% |
1.81 |
1.78 |
1.23 |
|
EARNING PER SHARE |
BAHT |
6.73 |
5.52 |
3.58 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.64 |
0.59 |
0.59 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.79 |
1.46 |
1.42 |
|
TIME INTEREST EARNED |
TIMES |
175.39 |
149.62 |
109.51 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(6.96) |
25.89 |
|
|
OPERATING PROFIT |
% |
17.22 |
36.63 |
|
|
NET PROFIT |
% |
21.79 |
54.09 |
|
|
FIXED ASSETS |
% |
(9.13) |
(1.09) |
|
|
TOTAL ASSETS |
% |
19.79 |
6.06 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is -6.96%. Turnover has decreased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
17.08 |
Deteriorated |
Industrial
Average |
43.19 |
|
Net Profit Margin |
1.58 |
Deteriorated |
Industrial
Average |
4.50 |
|
Return on Assets |
1.81 |
Deteriorated |
Industrial
Average |
7.04 |
|
Return on Equity |
5.07 |
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 17.08%. 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 1.58%.
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 1.81%.
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 5.07%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
1.71 |
Impressive |
Industrial
Average |
1.63 |
|
Quick Ratio |
1.12 |
|
|
|
|
Cash Conversion Cycle |
(9.05) |
|
|
|
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 1.71 times in 2013, increased from 1.05 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 1.12 times in 2013,
increased from 0.48 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 -10 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.64 |
Acceptable |
Industrial
Average |
0.57 |
|
Debt to Equity Ratio |
1.79 |
Risky |
Industrial
Average |
1.32 |
|
Times Interest Earned |
175.39 |
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 175.39 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 0.64 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 |
2.50 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.15 |
Acceptable |
Industrial
Average |
1.56 |
|
Inventory Conversion Period |
71.35 |
|
|
|
|
Inventory Turnover |
5.12 |
Impressive |
Industrial
Average |
3.70 |
|
Receivables Conversion Period |
39.74 |
|
|
|
|
Receivables Turnover |
9.18 |
Impressive |
Industrial
Average |
3.87 |
|
Payables Conversion Period |
120.14 |
|
|
|
The company's Account Receivable Ratio is calculated as 9.18 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 62 days at the
end of 2012 to 71 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 5.91 times in year 2012 to 5.12 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.15 times and 1.48
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.63.39 |
|
|
1 |
Rs.96.72 |
|
Euro |
1 |
Rs.75.80 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
NIS |
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.