MIRA INFORM REPORT
|
Report No. : |
330355 |
|
Report Date : |
11.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
SHAIKH BROTHER & SON TRADING CO., LTD. |
|
|
|
|
Registered Office : |
6th Floor, Room N,
Phayathai Plaza Building, 128/67 Phayathai
Road, Thung Phayathai, Ratchathewi, Bangkok
10400 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
10.04.2008 |
|
|
|
|
Com. Reg. No.: |
0105551041327 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in trading
business to import,
distribute and export
various kinds of
agricultural products such
as rice, dried
beans, dried foods |
|
|
|
|
No. of Employees : |
5 |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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
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 & address
SHAIKH BROTHER
& SON TRADING CO., LTD.
SUMMARY
BUSINESS ADDRESS : 6th
FLOOR, ROOM N, PHAYATHAI
PLAZA BUILDING,
128/67 PHAYATHAI
ROAD, THUNG PHAYATHAI,
RATCHATHEWI, BANGKOK
10400, THAILAND
TELEPHONE : [66] 2612-1293
FAX : [66] 2612-1887
E-MAIL ADDRESS : sbstradeco@gmail.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2008
REGISTRATION NO. : 0105551041327
TAX ID NO. : 3033023527
CAPITAL REGISTERED : BHT.
4,000,000
CAPITAL PAID-UP : BHT.
4,000,000
SHAREHOLDER’S PROPORTION : THAI
: 55%
PAKISTANI : 45%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. AMIR SHAIKH,
PAKISTANI
MANAGING DIRECTOR
NO. OF STAFF : 5
LINES OF BUSINESS : AGRICULTURAL PRODUCTS
TRADING COMPANY
|
|
|
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
April 10, 2008
as a private
limited company under
the registered name SHAIKH BROTHER
& SON TRADING
CO., LTD., by Thai
and Pakistani groups, with
the objective to engage in trading business for agricultural products. It
currently employs 5
staff.
The subject’s registered
address is 6th Floor,
Room N, Phayathai Plaza
Building,
128/67 Phayathai Road,
Thung Phayathai, Ratchathewi,
Bangkok 10400, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Apisara Shaikh |
|
Thai |
39 |
|
Mr. Amir Shaikh |
|
Pakistani |
42 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Amir Shaikh is
the Managing Director.
He is Pakistani
nationality with the
age of 42
years old.
Mrs. Apisara Shaikh is
the Deputy Managing
Director and Accounting
Manager.
She is Thai
nationality with the
age of 39
years old.
BUSINESS OPERATIONS
The subject is
engaged in trading
business to import,
distribute and export
various kinds of
agricultural products such
as rice, dried
beans, dried foods.
PURCHASE
The products are
purchased from suppliers
both domestic and overseas
in India, Pakistan
and Republic of
China.
SALES [LOCAL]
The products are
sold locally by
wholesale to manufacturers, traders
and end-users.
EXPORT
The products are
exported and re-exported
to Pakistan, India, Hong Kong,
Republic of China
and the countries
in Europe.
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
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 5 staff.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in a prime
commercial area.
COMMENT
The subject is
engaged in trading
of agricultural products
for both domestic
consumption and exports.
Its operating performance
in 2013 was
satisfactory with a moderate
increase in its
sales compared to
the pervious year.
In general, its
business is improving
in line with
demand of the
products from consumers.
FINANCIAL INFORMATION
The capital was
registered at Bht. 1,000,000 divided
into 10,000 shares of
Bht. 100 each with
fully paid.
The capital was
increased later as
follows:
Bht. 2,000,000
on May 16,
2008
Bht. 4,000,000
on February 19, 2013
The latest 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
October 24, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Apisara Shaikh Nationality: Thai Address : 57/2-3
Phayathai Road, Thanon
Phayathai,
Ratchathewi, Bangkok |
21,200 |
53.00 |
|
Mr. Amir Shaikh Nationality: Pakistani Address : 57/2-3
Phayathai Road, Thanon
Phayathai,
Ratchathewi, Bangkok |
11,000 |
27.50 |
|
Ms. Focia Shaikh Nationality: Pakistani Address : 57/2-3
Phayathai Road, Thanon
Phayathai,
Ratchathewi, Bangkok |
3,500 |
8.75 |
|
Mr. Fowaz Shaikh Nationality: Pakistani Address : 57/2-3
Phayathai Road, Thanon
Phayathai,
Ratchathewi, Bangkok |
3,500 |
8.75 |
|
Ms. Wasana Boonmarat Nationality: Thai Address : 57/2-3
Phayathai Road, Thanon
Phayathai,
Ratchathewi, Bangkok |
400 |
1.00 |
|
Ms. Thosawan Poolkeaw Nationality: Thai Address : 56/181
Moo 5, T. Plaibang, A. Bangkruay,
Nonthaburi |
200 |
0.50 |
|
Mr. Bandit Surintaramon Nationality: Thai Address : 27/2
Lamphun-Pasha Road, T. Naimuang, A.
Muang, Lamphun |
200 |
0.50 |
Total Shareholders : 7
Share Structure [as
at October 24,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
22,000 |
55.00 |
|
Foreign - Pakistani |
3 |
18,000 |
45.00 |
|
Total |
7 |
40,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Mrs. Supreeya Limsunthorn No. 5178
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 |
107,891.99 |
174,889.19 |
204,824.97 |
|
Trade Accounts Receivable
|
176,073.15 |
176,073.15 |
- |
|
Inventories |
32,992,472.51 |
15,917,507.45 |
1,018,966.36 |
|
Other Current Assets
|
2,580,982.22 |
10,497,273.50 |
139,141.89 |
|
|
|
|
|
|
Total Current Assets
|
35,857,419.87 |
26,765,743.29 |
1,362,933.22 |
|
Long-term Loan to Related Person |
- |
- |
175,000.00 |
|
Fixed Assets |
35,674.46 |
28,465.28 |
32,483.69 |
|
Total Assets |
35,893,094.33 |
26,794,208.57 |
1,570,416.91 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft |
1,503,312.78 |
616,983.92 |
- |
|
Payable - Bank |
2,238,011.98 |
9,801,818.49 |
- |
|
Trade Account Payable |
- |
- |
26,556.37 |
|
Accrued Expenses |
14,509.31 |
3,265,523.95 |
5,404.00 |
|
Other Current Liabilities |
75,962.49 |
212,967.33 |
13,912.60 |
|
|
|
|
|
|
Total Current Liabilities |
3,831,796.56 |
13,897,293.69 |
45,872.97 |
|
Loan Payable from Directors |
26,520,000.00 |
9,950,000.00 |
1,250,000.00 |
|
Loan from Financial Institutions |
322,210.05 |
306,300.07 |
- |
|
Total Liabilities |
30,674,006.61 |
24,153,593.76 |
1,295,872.97 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 40,000 shares
in 2013; 20,000 shares in 2012 & 2011 |
4,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
|
|
|
|
|
Capital Paid |
4,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
1,219,087.72 |
640,614.81 |
[1,725,456.06] |
|
Total Shareholders' Equity |
5,219,087.72 |
2,640,614.81 |
274,543.94 |
|
Total Liabilities & Shareholders' Equity |
35,893,094.33 |
26,794,208.57 |
1,570,416.91 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
60,012,806.94 |
59,294,551.20 |
866,597.97 |
|
Other Income |
- |
54,692.75 |
464,769.36 |
|
Interest Income |
903.51 |
2,685.13 |
7,241.47 |
|
Gain on Exchange Rate |
591,476.73 |
324,451.28 |
84,517.65 |
|
Total Revenues |
60,605,187.18 |
59,676,380.36 |
1,423,126.45 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
55,500,647.84 |
54,235,668.99 |
814,020.31 |
|
Selling Expenses |
419,991.43 |
402,128.45 |
76,957.13 |
|
Administrative Expenses |
3,589,516.77 |
2,374,685.61 |
1,243,355.62 |
|
Total Expenses |
59,510,156.04 |
57,012,483.05 |
2,134,333.06 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
1,095,031.14 |
2,663,897.31 |
[711,206.61] |
|
Financial Cost |
[367,522.41] |
[101,240.68] |
- |
|
Profit / [Loss] before Income
Tax |
727,508.73 |
2,562,656.63 |
[711,206.61] |
|
Income Tax |
[149,035.82] |
[196,585.76] |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
578,472.91 |
2,366,070.87 |
[711,206.61] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
9.36 |
1.93 |
29.71 |
|
QUICK RATIO |
TIMES |
0.07 |
0.03 |
4.47 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1,682.23 |
2,083.05 |
26.68 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.67 |
2.21 |
0.55 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
216.97 |
107.12 |
456.90 |
|
INVENTORY TURNOVER |
TIMES |
1.68 |
3.41 |
0.80 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
1.07 |
1.08 |
- |
|
RECEIVABLES TURNOVER |
TIMES |
340.84 |
336.76 |
- |
|
PAYABLES CONVERSION PERIOD |
DAYS |
- |
- |
11.91 |
|
CASH CONVERSION CYCLE |
DAYS |
218.05 |
108.21 |
444.99 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
92.48 |
91.47 |
93.93 |
|
SELLING & ADMINISTRATION |
% |
6.68 |
4.68 |
152.36 |
|
INTEREST |
% |
0.61 |
0.17 |
- |
|
GROSS PROFIT MARGIN |
% |
8.51 |
9.18 |
70.29 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.82 |
4.49 |
(82.07) |
|
NET PROFIT MARGIN |
% |
0.96 |
3.99 |
(82.07) |
|
RETURN ON EQUITY |
% |
11.08 |
89.60 |
(259.05) |
|
RETURN ON ASSET |
% |
1.61 |
8.83 |
(45.29) |
|
EARNING PER SHARE |
BAHT |
14.46 |
118.30 |
(35.56) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.85 |
0.90 |
0.83 |
|
DEBT TO EQUITY RATIO |
TIMES |
5.88 |
9.15 |
4.72 |
|
TIME INTEREST EARNED |
TIMES |
2.98 |
26.31 |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
1.21 |
6,742.22 |
|
|
OPERATING PROFIT |
% |
(58.89) |
(474.56) |
|
|
NET PROFIT |
% |
(75.55) |
432.68 |
|
|
FIXED ASSETS |
% |
25.33 |
(12.37) |
|
|
TOTAL ASSETS |
% |
33.96 |
1,606.18 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 1.21%.
Turnover has increased from THB
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.51 |
Impressive |
Industrial Average |
4.12 |
|
Net Profit Margin |
0.96 |
Impressive |
Industrial Average |
(0.18) |
|
Return on Assets |
1.61 |
Impressive |
Industrial Average |
(0.43) |
|
Return on Equity |
11.08 |
Impressive |
Industrial Average |
(2.40) |
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 8.51%. 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 0.96%, 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 1.61%, 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.
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. Return on Equity ratio
is 11.08%, 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 Uptrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
9.36 |
Impressive |
Industrial Average |
1.03 |
|
Quick Ratio |
0.07 |
|
|
|
|
Cash Conversion Cycle |
218.05 |
|
|
|
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 9.36 times in 2013, increased from 1.93 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 0.07 times in 2013,
increased from 0.03 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 219 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.85 |
Acceptable |
Industrial Average |
0.84 |
|
Debt to Equity Ratio |
5.88 |
Risky |
Industrial Average |
5.08 |
|
Times Interest Earned |
2.98 |
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 2.98 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 0.85 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 Uptrend
Times Interest Earned Stable
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
1,682.23 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.67 |
Acceptable |
Industrial Average |
2.37 |
|
Inventory Conversion Period |
216.97 |
|
|
|
|
Inventory Turnover |
1.68 |
Deteriorated |
Industrial Average |
4.93 |
|
Receivables Conversion Period |
1.07 |
|
|
|
|
Receivables Turnover |
340.84 |
Impressive |
Industrial Average |
4.21 |
|
Payables Conversion Period |
- |
|
|
|
The company's Account Receivable Ratio is calculated as 340.84 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 107 days at the
end of 2012 to 217 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 3.41 times in year 2012 to 1.68 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.67 times and 2.21
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.63.38 |
|
|
1 |
Rs.97.65 |
|
Euro |
1 |
Rs.70.43 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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.