MIRA
INFORM REPORT
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Report No. : |
305017 |
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Report Date : |
28.01.2015 |
IDENTIFICATION DETAILS
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Name : |
THAI CHAROEN MOTOR BIKE [2535] LIMITED PARTNERSHIP |
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Registered Office : |
1 Soi Rongmuang 5, |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
17.04.1992 |
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Com. Reg. No.: |
0103535027151 |
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Legal Form : |
Limited Partnership |
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Line of Business : |
Importer and Distributor of Scooters and Spare Parts. |
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No. of Employees : |
10 |
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 : |
No Complaints |
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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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
Thailand |
B1 |
B1 |
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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, 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 and address
THAI CHAROEN MOTOR
BIKE [2535] LIMITED PARTNERSHIP
SUMMARY
BUSINESS ADDRESS : 1
SOI RONGMUANG 5,
RONGMUANG ROAD,
RONGMUANG, PATHUMWAN,
BANGKOK 10330,
THAILAND
TELEPHONE : [66] 2216-4441-3
FAX :
[66] 2612-5229
E-MAIL ADDRESS : chooksak01@yahoo.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1992
REGISTRATION NO. : 0103535027151
TAX ID NO. : 3102839813
CAPITAL REGISTERED
: BHT.
500,000
CAPITAL PAID-UP
: BHT.
500,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : LIMITED
PARTNERSHIP
EXECUTIVE : MR. CHOOSAK MESANTHASUWAN, THAI
MANAGING PARTNER
NO. OF
STAFF : 10
LINES OF
BUSINESS : SCOOTERS AND
SPARE PARTS
IMPORTER AND
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 April 17, 1992
as a limited
partnership under the
name style THAI
CHAROEN MOTOR BIKE [2535]
LIMITED PARTNERSHIP by Mr.
Choosak Mesanthasuwan and Mr. Choochart Mesanthasuwan, who
are Thai partners, with the
business objective to import and
distribute scooters and spare parts.
It currently employs 10
staff.
The subject’s registered address
is 1 Soi Rongmuang 5, Rongmuang
Road, Rongmuang, Pathumwan,
Bangkok 10330, and
this is the
subject’s current operation
address.
AUTHORIZED PERSON
Mr. Choosak
Mesanthasuwan can sign
on behalf of
the subject with
seal affixed. He
also bears full
financial responsibility by
law.
MANAGEMENT
Mr. Choosak Mesanthasuwan is
the Managing Partner.
He is Thai
nationality with the
age of 50
years old.
BUSINESS OPERATIONS
The
subject is engaged
in importing and
authorized distributing of
“LML” scooters and
spare parts, as
well as providing
after sales service.
PURCHASE
90% of
the products is
imported from India
and Republic of
China, the remaining
10% is purchased
from local suppliers.
SALES
100% of
the products is
sold locally by
wholesale to dealers
nationwide, as well
as by retail
to 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 according
the past two
years.
CREDIT
Sales
are by cash
or on the
credit term of
30 days.
Local
bills are paid
by cash or
on the credits
term of 30-60
days.
Imports
are by T/T.
BANKING
Bangkok Bank
Public Co., Ltd.
EMPLOYMENT
The subject
employs 10 staff.
LOCATION DETAILS
The premise
is owned for
administrative office and
showroom at the
heading address. Premise
is located in
commercial/residential area.
Branch office
and service center
are located at
158/17 New Urupong
Road, Rongmuang, Pathumwan, Bangkok 10330.
COMMENT
The subject
was formed in
1992 as an importer
and distributor of scooters
and spare parts including after sale
services. The products
are for general
consumers. Subject reported
a slowdown in
its sales revenue
in 2013. Moreover,
low consumer spending would have
an impact on the
company’s business performance
in 2014 and
2015.
FINANCIAL INFORMATION
The capital
was registered at
Bht. 500,000 which was carried by 2
persons as followed:
Name Age Amount
Mr. Choosak Mesanthasuwan 50 Bht.
100,000 [unlimited partner]
Address :
1/3-4 Soi Rongmuang 5,
Rongmuang, Pathumwan,
Bangkok
Mr. Choochart Mesanthasuwan 51 Bht. 400,000
Address :
1/3-4 Soi Rongmuang 5,
Rongmuang, Pathumwan,
Bangkok
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.:
Ms. Amornrat
Boonthanakorn No. 4769
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 |
67,527.01 |
248,024.19 |
51,242.41 |
|
Other
Receivable |
4,113,662.24 |
2,675,905.64 |
2,259,078.23 |
|
Inventories |
5,708,344.74 |
3,465,263.96 |
5,616,482.89 |
|
Other
Current Assets |
521,228.85 |
203,317.91 |
- |
|
|
|
|
|
|
Total Current
Assets |
10,410,762.84 |
6,592,511.70 |
7,923,803.53 |
|
Equipment |
644,264.46 |
819,350.69 |
57,977.31 |
|
Total Assets
|
11,055,027.30 |
7,411,862.39 |
7,981,780.84 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Other
Payable |
101,382.76 |
591,541.60 |
998,555.00 |
|
Short-term
Loan |
5,141,500.00 |
441,500.00 |
4,841,500.00 |
|
Accrued
Income Tax |
- |
720,297.20 |
288,306.36 |
|
|
|
|
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Total Current Liabilities |
5,242,882.76 |
1,753,338.80 |
6,128,361.36 |
|
Total Liabilities |
5,242,882.76 |
1,753,338.80 |
6,128,361.36 |
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Shareholders'
Equity |
|
|
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|
|
|
|
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Capital
Paid |
500,000.00 |
500,000.00 |
500,000.00 |
|
Retained Earning - Unappropriated [Deficit] |
5,312,144.54 |
5,158,523.59 |
1,356,419.48 |
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|
|
|
|
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Total Shareholders' Equity |
5,812,144.54 |
5,658,523.59 |
1,856,419.48 |
|
Total Liabilities
& Shareholders' Equity |
11,055,027.30 |
7,411,862.39 |
7,984,780.84 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
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Sales
|
12,249,532.62 |
33,330,453.61 |
20,487,671.33 |
|
Other
Income |
364,809.97 |
184,175.52 |
39,874.34 |
|
Total Revenues
|
12,614,342.59 |
33,514,629.13 |
20,527,545.67 |
|
Expenses |
|
|
|
|
|
|
|
|
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Cost
of Goods Sold
|
9,282,675.34 |
25,874,218.24 |
15,416,826.01 |
|
Selling
Expenses |
121,986.01 |
174,964.09 |
191,851.91 |
|
Administrative Expenses |
3,002,096.82 |
2,486,399.45 |
2,525,749.70 |
|
Total Expenses |
12,406,758.17 |
28,535,581.78 |
18,134,427.62 |
|
|
|
|
|
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Profit / [Loss] before
Income Tax |
207,584.42 |
4,979,047.35 |
2,393,118.05 |
|
Income Tax
|
[53,963.47] |
[1,176,943.24] |
[445,221.25] |
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|
|
|
|
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Net
Profit / [Loss] |
153,620.95 |
3,802,104.11 |
1,947,896.80 |
|
Retained Earning, beginning of
year |
5,158,523.59 |
1,356,419.48 |
[591,477.32] |
|
Retained Earning,
end of year |
5,312,144.54 |
5,158,523.59 |
1,356,419.48 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
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LIQUIDITY
RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.99 |
3.76 |
1.29 |
|
QUICK RATIO |
TIMES |
0.80 |
1.67 |
0.38 |
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|
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ACTIVITY
RATIO |
|
|
|
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|
FIXED ASSETS TURNOVER |
TIMES |
19.01 |
40.68 |
353.37 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.11 |
4.50 |
2.57 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
224.46 |
48.88 |
132.97 |
|
INVENTORY TURNOVER |
TIMES |
1.63 |
7.47 |
2.74 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
RECEIVABLES TURNOVER |
TIMES |
- |
- |
- |
|
PAYABLES CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
CASH CONVERSION CYCLE |
DAYS |
224.46 |
48.88 |
132.97 |
|
|
|
|
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PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
75.78 |
77.63 |
75.25 |
|
SELLING & ADMINISTRATION |
% |
25.50 |
7.98 |
13.26 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
27.20 |
22.92 |
24.95 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.69 |
14.94 |
11.68 |
|
NET PROFIT MARGIN |
% |
1.25 |
11.41 |
9.51 |
|
RETURN ON EQUITY |
% |
2.64 |
67.19 |
104.93 |
|
RETURN ON ASSET |
% |
1.39 |
51.30 |
24.40 |
|
EARNING PER SHARE |
BAHT |
30.72 |
760.42 |
389.58 |
|
|
|
|
|
|
|
LEVERAGE
RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.47 |
0.24 |
0.77 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.90 |
0.31 |
3.30 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL
GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(63.25) |
62.69 |
|
|
OPERATING PROFIT |
% |
(95.83) |
108.06 |
|
|
NET PROFIT |
% |
(95.96) |
95.19 |
|
|
FIXED ASSETS |
% |
(21.37) |
1,313.23 |
|
|
TOTAL ASSETS |
% |
49.15 |
(7.18) |
|
ANNUAL GROWTH: RISKY
An annual sales growth is -63.25%. Turnover has decreased from THB
PROFITABILITY
: ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
27.20 |
Impressive |
Industrial Average |
9.97 |
|
Net Profit Margin |
1.25 |
Acceptable |
Industrial Average |
2.01 |
|
Return on Assets |
1.39 |
Deteriorated |
Industrial Average |
5.25 |
|
Return on Equity |
2.64 |
Deteriorated |
Industrial Average |
13.31 |
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 27.2%. 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 1.25%.
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 1.39%.
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 2.64%.
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 |
1.99 |
Impressive |
Industrial Average |
1.84 |
|
Quick Ratio |
0.80 |
|
|
|
|
Cash Conversion Cycle |
224.46 |
|
|
|
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 1.99 times in 2013, decreased from 3.76 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 0.8 times in 2013,
decreased from 1.67 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 225 days.
Trend
of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE
: EXCELLENT
LEVERAGE
RATIO
|
Debt Ratio |
0.47 |
Impressive |
Industrial Average |
0.59 |
|
Debt to Equity Ratio |
0.90 |
Impressive |
Industrial Average |
1.46 |
|
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 lower the percentage means that the
company is using less leverage and has a stronger equity position.
Debt Ratio shows the proportion of a
company's assets which are financed through debt. The company's figure is 0.47
less than 0.5, most of the company's assets are financed through equity.
Trend
of the average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Stable
ACTIVITY:
ACCEPTABLE
ACTIVITY
RATIO
|
Fixed Assets Turnover |
19.01 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.11 |
Deteriorated |
Industrial Average |
2.62 |
|
Inventory Conversion Period |
224.46 |
|
|
|
|
Inventory Turnover |
1.63 |
Deteriorated |
Industrial Average |
8.94 |
|
Receivables Conversion Period |
- |
|
|
|
|
Receivables Turnover |
- |
|
Industrial Average |
5.53 |
|
Payables Conversion Period |
- |
|
|
|
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 49 days at the end of 2012 to 224
days at the end of 2013. This represents a negative trend. And Inventory
turnover has decreased from 7.47 times in year 2012 to 1.63 times in year 2013.
The company's Total Asset Turnover is calculated as 1.11 times and 4.5
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 Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.46 |
|
|
1 |
Rs.92.77 |
|
Euro |
1 |
Rs.69.03 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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.