MIRA
INFORM REPORT
|
Report No. : |
330044 |
|
Report Date : |
02.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
RAYONG MDF CO., LTD. |
|
|
|
|
Registered Office : |
1/31
Moo 3, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Year of Establishment : |
2010 |
|
|
|
|
Com. Reg. No.: |
0215553001593 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in manufacturing, distributing and
exporting of Medium
Density Fiber [MDF] boards.
Most of the
products are supplied
to furniture production
industry |
|
|
|
|
No. of Employee : |
250 |
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 : |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Thailand |
A2 |
A2 |
|
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 has historically had a strong economy due in part to 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 4 million migrant workers from neighboring countries, and faces labor shortages. Following the May 2014 coup d’�tat, 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
RAYONG MDF
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 1/31
MOO 3, MABYAI
ROAD,
T. TANGKWIEN, A. KLAENG,
RAYONG 21110,
THAILAND
TELEPHONE : [66] 38
678-140-1
FAX :
[66] 38 671-216
E-MAIL
ADDRESS : info@rayongpanel.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2010
REGISTRATION
NO. : 0215553001593
TAX
ID NO. : 3033895629
CAPITAL REGISTERED : BHT. 500,000,000
CAPITAL PAID-UP : BHT.
500,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SOMPORN PISOLPOOL, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 250
LINES
OF BUSINESS : MEDIUM DENSITY
FIBER [MDF] BOARD
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 April 8,
2010 as a
private limited company
under the registered name RAYONG
MDF CO., LTD., by Thai
groups, with the
business objective to
manufacture medium density
fiber [MDF] boards
for furniture production
industry both domestic
and overseas markets.
It currently employs
approximately 250 staff.
The
subject’s registered address
is 1/31 Moo 3, Mabyai
Road, T. Tangkwien, A. Klaeng,
Rayong 21110, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Somporn Pisolpool |
|
Thai |
65 |
|
Mrs. Pornpun Pisolpool |
|
Thai |
46 |
|
Mr. Anusak Pisolpool |
|
Thai |
37 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject with
company’s affixed.
MANAGEMENT
Mr. Somporn Pisolpool is
the Managing Director.
He is Thai
nationality with the
age of 65
years old.
Mrs. Pornpun Pisolpool is
the Deputy Managing
Director.
She is Thai
nationality with the
age of 46
years old.
Mr. Anusak Pisolpool is
the Sales & Marketing Manager.
He is Thai
nationality with the
age of 37
years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing, distributing and exporting of
Medium Density Fiber [MDF]
boards. Most of
the products are
supplied to furniture
production industry.
PRODUCTION CAPACITY
256,700 cbm annually (sale on
2013)
PURCHASE
80%
of raw materials
such as rubber
wood, eucalyptus wood
and chemical are
purchased from local
suppliers, the remaining
20% is imported
from Germany, Japan,
Indonesia, India and
Republic of China.
MAJOR SUPPLIERS
TOA-Dovechem
Industries Co., Ltd. : Thailand
Eternal Resin
Co., Ltd. :
Thailand
SALES
Most of the products
is exported to Taiwan, Republic of
China, Philippines, Hong Kong,
Korea, Indonesia, Singapore,
Vietnam, Malaysia and
Australia, the remaining
is sold locally.
RELATED AND AFFILIATED COMPANY
Rayong Panel Co.,
Ltd.
Business Type :
Manufacturer and distributor
of particle boards
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
T/T.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
The
Siam Commercial Bank
Public Co., Ltd.
EMPLOYMENT
The
subject currently employs
approximately 250 staff.
LOCATION DETAILS
The
premise is owned for
administrative office, factory
and warehouse at the heading
address. Premise is
located in provincial.
COMMENT
The
subject reported its first year
sales at an outstanding
performance. However, the economy is likely
to perform below
its full potential due to
the constraints on export expansion
due to the slower-than-expected recovery of the global economy and the decline in
export price products, this would
encounter the subject with
a slower growth
than expectation.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 500,000,000 divided
into 500,000 shares
of Bht. 1,000 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
[as
at April 30,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Somporn Pisolpool Nationality: Thai Address : 1/6
Moo 3, T. Tangkwien, A. Klaeng, Rayong |
499,998 |
99.99 |
|
Ms. Wilaijit Pisolpool Nationality: Thai Address : 1/29
Moo 3, T. Tangkwien, A. Klaeng, Rayong |
1 |
= 0.01 |
|
Mrs. Pornphan Pisolpool Nationality: Thai Address : 1/6
Moo 3, T. Tangkwien, A. Klaeng, Rayong |
1 |
|
Total Shareholders : 3
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
500,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
500,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Mr. Sinchai Jaturantanont No.
7196
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 |
12,346,617.64 |
20,443,410.23 |
184,200.00 |
|
Trade Accounts & Other Receivable |
139,203,109.50 |
155,728,319.57 |
155,627,484.51 |
|
Short-term Lending |
39,689,225.00 |
- |
20,600,000.00 |
|
Other Current Assets
|
10,456,717.34 |
4,410,443.46 |
12,585,642.94 |
|
|
|
|
|
|
Total Current Assets
|
201,695,669.48 |
180,582,173.23 |
188,997,327.45 |
|
|
|
|
|
|
Fixed Assets |
1,879,622,518.98 |
1,778,007,684.75 |
1,455,420930.81 |
|
Other Non-current Assets |
123,906.25 |
123,906.25 |
- |
|
Total Assets |
2,081,442,094.71 |
1,958,713,764.23 |
1,644,418,258.26 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
103,256,592.43 |
39,020,031.86 |
183,684,614.41 |
|
Trade Accounts & Other Payable
|
113,839,631.58 |
185,347,332.42 |
335,189,447.34 |
|
Short-term Loans |
457,986,836.17 |
351,695,500.15 |
- |
|
Current Portion of Long-term Loans |
50,648,282.64 |
50,648,282.64 |
- |
|
|
|
|
|
|
Total Current Liabilities |
725,731,342.82 |
626,711,147.07 |
518,874,061.75 |
|
Long-term Loans |
914,660,228.47 |
848,394,526.24 |
626,879,000.00 |
|
Total Liabilities |
1,640,391,571.29 |
1,475,105,673.31 |
1,145,753,061.75 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 500,000 shares |
500,000,000.00 |
500,000,000.00 |
500,000,000.00 |
|
|
|
|
|
|
Capital Paid |
500,000,000.00 |
500,000,000.00 |
500,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
[58,949,476.58] |
[16,391,909.08] |
[1,334,803.49] |
|
Total Shareholders' Equity |
441,050,523.42 |
483,608,090.92 |
498,665,196.51 |
|
Total Liabilities & Shareholders' Equity |
2,081,442,094.71 |
1,958,713,764.23 |
1,644,418,258.26 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
663,793,398.76 |
- |
- |
|
Interest Income |
33,070.21 |
- |
- |
|
Other Income |
18,988,436.39 |
21,094.24 |
744,078.70 |
|
Total Revenues
|
682,814,905.36 |
21,094.24 |
744,078.70 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Sales |
640,288,537.70 |
- |
- |
|
Selling Expenses |
75,786,758.25 |
- |
- |
|
Administrative Expenses |
7,911,596.11 |
14,695,157.50 |
2,539,738.82 |
|
Total Expenses |
723,986,892.06 |
14,695,157.50 |
2,539,738.82 |
|
Profit / [Loss] before Income Tax |
[41,171,986.70] |
[14,674,063.26] |
[1,795,660.12] |
|
Income Tax |
[1,385,580.80] |
[383,042.33] |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
[42,557,567.50] |
[15,057,105.59] |
[1,795,660.12] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.28 |
0.29 |
0.36 |
|
QUICK RATIO |
TIMES |
0.26 |
0.28 |
0.34 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.35 |
- |
- |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.32 |
- |
- |
|
INVENTORY CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
INVENTORY TURNOVER |
TIMES |
- |
- |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
76.54 |
- |
- |
|
RECEIVABLES TURNOVER |
TIMES |
4.77 |
- |
- |
|
PAYABLES CONVERSION PERIOD |
DAYS |
64.89 |
- |
- |
|
CASH CONVERSION CYCLE |
DAYS |
11.65 |
- |
- |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
96.46 |
- |
- |
|
SELLING & ADMINISTRATION |
% |
12.61 |
- |
- |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
6.41 |
- |
- |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(6.20) |
- |
- |
|
NET PROFIT MARGIN |
% |
(6.41) |
- |
- |
|
RETURN ON EQUITY |
% |
(9.65) |
(3.11) |
(0.36) |
|
RETURN ON ASSET |
% |
(2.04) |
(0.77) |
(0.11) |
|
EARNING PER SHARE |
BAHT |
(8.51) |
(3.01) |
(0.36) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.79 |
0.75 |
0.70 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.72 |
3.05 |
2.30 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
- |
- |
|
|
OPERATING PROFIT |
% |
180.58 |
717.20 |
|
|
NET PROFIT |
% |
(182.64) |
(738.53) |
|
|
FIXED ASSETS |
% |
5.72 |
22.16 |
|
|
TOTAL ASSETS |
% |
6.27 |
19.11 |
|
ANNUAL GROWTH :
SATISFACTORY
Net profit has decreased from THB
PROFITABILITY : RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
6.41 |
Deteriorated |
Industrial
Average |
23.09 |
|
Net Profit Margin |
(6.41) |
Deteriorated |
Industrial
Average |
1.80 |
|
Return on Assets |
(2.04) |
Deteriorated |
Industrial
Average |
1.30 |
|
Return on Equity |
(9.65) |
Deteriorated |
Industrial
Average |
2.65 |
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 6.41%. 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 -6.41%.
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 -2.04%.
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 -9.65%.
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 |
0.28 |
Risky |
Industrial
Average |
1.09 |
|
Quick Ratio |
0.26 |
|
|
|
|
Cash Conversion Cycle |
11.65 |
|
|
|
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 0.28 times in 2013, decreased from 0.29 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 0.26 times in 2013,
decreased from 0.28 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 12 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.79 |
Acceptable |
Industrial
Average |
0.45 |
|
Debt to Equity Ratio |
3.72 |
Risky |
Industrial
Average |
0.83 |
|
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 0.79 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
0.35 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.32 |
Deteriorated |
Industrial
Average |
0.72 |
|
Inventory Conversion Period |
- |
|
|
|
|
Inventory Turnover |
- |
|
Industrial
Average |
3.85 |
|
Receivables Conversion Period |
76.54 |
|
|
|
|
Receivables Turnover |
4.77 |
Satisfactory |
Industrial
Average |
5.00 |
|
Payables Conversion Period |
64.89 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.77 and
The company's Total Asset Turnover is calculated as 0.32 times and 0
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 Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.62 |
|
|
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.70.77 |
INFORMATION DETAILS
|
Analysis Done by
: |
SAN |
|
|
|
|
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.