MIRA INFORM REPORT
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Report No. : |
328111 |
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Report Date : |
23.06.2015 |
IDENTIFICATION DETAILS
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Name : |
MRM CONNECTIONS CO., LTD. |
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Formerly Known As : |
MRM CONTRACTORS & GENERAL TRADERS CO., LTD. |
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Registered Office : |
A1, Level 7, Bangna Thani Building, 1/14 Soi Bangna-Trad 34, Bangna, Bangkok 10260, |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
18.08.2003 |
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Com. Reg. No.: |
0105546097115 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is engaged
in exporting various
kinds of agricultural, food
and beverage products,
such as rice,
sugar, canned tuna,
canned mackerel, canned
fruits & vegetables,
fruit juice, powdered
milk, energy drinks |
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No. of Employee : |
8 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Unknown |
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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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Thailand |
B1 |
A2 |
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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 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 and address
MRM CONNECTIONS CO., LTD.
[FORMER
: MRM CONTRACTORS & GENERAL TRADERS
CO., LTD.]
SUMMARY
BUSINESS
ADDRESS : A1,
LEVEL 7, BANGNA
THANI BUILDING,
1/14 SOI
BANGNA-TRAD 34, BANGNA,
BANGKOK 10260,
THAILAND
TELEPHONE : [66] 2398-5050,
087 979-0707
FAX :
[66] 2398-50501
E-MAIL
ADDRESS : info@mrmconnections.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2003
REGISTRATION
NO. : 0105546097115
TAX
ID NO. : 3031070257
CAPITAL REGISTERED : BHT. 2,000,000
CAPITAL PAID-UP : BHT.
2,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
PAKISTANI :
49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. KHURRAM AHMED
KHAN, PAKISTANI
MANAGING DIRECTOR
NO.
OF STAFF : 8
LINES
OF BUSINESS AGRICULTURAL, FOOD
AND BEVERAGE
PRODUCTS
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 August
18, 2003 as a private limited
company under the
originally registered name “MRM
Contractors & General Traders
Co., Ltd.”, by Thai
and Pakistani groups. On
September 29, 2005,
the subject’s registered name
was changed to
MRM CONNECTIONS CO., LTD.
Its business objective to
export various kinds
of agricultural, foods and
beverage products. It
currently employs 8
staff.
The
subject’s registered address
is A1, Level
7, Bangna Thani
Building, 1/ 4 Soi Bangna-Trad 34, Bangna, Bangkok 10260,
and this
is the subject’s current
operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
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Mr. Khurram Ahmed Khan |
|
Pakistani |
48 |
AUTHORIZED
PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Khurram Ahmed Khan
is the Managing
Director.
He is Pakistani
nationality with the
age of 48
years old.
BUSINESS
OPERATIONS
The subject
is engaged in
exporting various kinds
of agricultural, food
and beverage products,
such as rice,
sugar, canned tuna,
canned mackerel, canned
fruits & vegetables,
fruit juice, powdered
milk, energy drinks
and etc.
PURCHASE
100% of the
products is purchased
from local supplier.
SALES
100% of the
products is exported
to India, Pakistan,
Vietnam and Nepal.
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
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Exports are against
T/T.
BANKING
The
subject was not
disclosed its banker’s
name.
EMPLOYMENT
The
subject currently employs
8 staff.
LOCATION DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in commercial/residential area.
COMMENT
The
subject has not submitted
its 2013 financial
statement to the
Commercial Registration Department,
Ministry of Commerce.
Its business is
relatively slow, while
growth is expected
at slow pace.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 1,000,000
divided into 10,000 shares of
Bht. 100 each
with fully paid.
On
November 27, 2003,
the registered capital
was increased to
Bht. 2,000,000 divided
into 20,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
[as
at April 30,
2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Wimonmart Muenhor Nationality: Thai Address : 1000
Rama 9 Road,
Suanluang, Bangkok |
10,200 |
51.00 |
|
Mr. Khurram Ahmed Khan Nationality: Pakistani Address : 1000
Rama 9 Road,
Suanluang, Bangkok |
4,900 |
24.50 |
|
Mrs. Maria Khan Nationality: Pakistani Address : 1000
Rama 9 Road,
Suanluang, Bangkok |
4,900 |
24.50 |
Total Shareholders : 3
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
10,200 |
51.00 |
|
Foreign-Pakistani |
2 |
9,800 |
49.00 |
|
Total |
3 |
20,000 |
100.00 |
NAME
OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Mrs. Jithapat Siwaprinyawong No.
9764
Note
The 2013-2014 financial statement
is not available
during investigation.
BALANCE
SHEET [BAHT]
The latest financial figures published
as at December
31, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
136,492.59 |
167,460.67 |
165,942.76 |
|
Trade Accounts &
Other Receivable |
712,055.22 |
416,535.38 |
217,256.59 |
|
|
|
|
|
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Total Current Assets
|
848,547.81 |
583,996.05 |
383,199.35 |
|
|
|
|
|
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Equipment |
329,604.99 |
531,879 |
730,739.58 |
|
Total Assets |
1,178,152.80 |
1,115,875.74 |
1,113,938.93 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
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Trade Accounts & Other
Payable |
34,467.67 |
311,745.81 |
198,922.12 |
|
|
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Total Current Liabilities |
34,467.67 |
311,745.81 |
198,922.12 |
|
Financial Lease Contract Liabilities, net |
- |
462,132.89 |
548,217.09 |
|
Total Liabilities |
34,467.67 |
773,878.70 |
747,139.21 |
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Shareholders' Equity |
|
|
|
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|
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|
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Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 10,000 shares |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
|
|
|
|
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Capital Paid |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
Retained Earning Unappropriated |
[856,314.87] |
[1,658,002.96] |
[1,633,200.28] |
|
Total Shareholders' Equity |
1,143,685.13 |
341,997.04 |
366,799.72 |
|
Total Liabilities & Shareholders' Equity |
1,178,152.80 |
1,115,875.04 |
1,113,938.93 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
7,362,065.09 |
9,714,002.85 |
8,108,145.31 |
|
Interest Income |
- |
3,622.50 |
9.11 |
|
Total Revenues |
7,362,065.09 |
9,717,625.35 |
8,108,154.42 |
|
Expenses |
|
|
|
|
|
|
|
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Cost of Goods
Sold |
3,978,590.97 |
7,912,611.02 |
6,669,058.22 |
|
Selling Expenses |
2,581,786.03 |
1,829,817.01 |
1,635,045.23 |
|
Total Expenses |
6,560,377.00 |
9,742,428.03 |
8,304,103.45 |
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|
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Net Profit / [Loss] |
801,688.09 |
[24,802.68] |
[195,949.03] |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
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|
|
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LIQUIDITY RATIO |
|
|
|
|
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CURRENT RATIO |
TIMES |
24.62 |
1.87 |
1.93 |
|
QUICK RATIO |
TIMES |
24.62 |
1.87 |
1.93 |
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ACTIVITY RATIO |
|
|
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FIXED ASSETS TURNOVER |
TIMES |
22.34 |
18.26 |
11.10 |
|
TOTAL ASSETS TURNOVER |
TIMES |
6.25 |
8.71 |
7.28 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
INVENTORY TURNOVER |
TIMES |
- |
- |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
35.30 |
15.65 |
9.78 |
|
RECEIVABLES TURNOVER |
TIMES |
10.34 |
23.32 |
37.32 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
3.16 |
14.38 |
10.89 |
|
CASH CONVERSION CYCLE |
DAYS |
32.14 |
1.27 |
(1.11) |
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PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
54.04 |
81.46 |
82.25 |
|
SELLING & ADMINISTRATION |
% |
35.07 |
18.84 |
20.17 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
45.96 |
18.58 |
17.75 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
10.89 |
(0.26) |
(2.42) |
|
NET PROFIT MARGIN |
% |
10.89 |
(0.26) |
(2.42) |
|
RETURN ON EQUITY |
% |
70.10 |
(7.25) |
(53.42) |
|
RETURN ON ASSET |
% |
68.05 |
(2.22) |
(17.59) |
|
EARNING PER SHARE |
BAHT |
40.08 |
(1.24) |
(9.80) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.03 |
0.69 |
0.67 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.03 |
2.26 |
2.04 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
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|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(24.21) |
19.81 |
|
|
OPERATING PROFIT |
% |
(3,332.26) |
(87.34) |
|
|
NET PROFIT |
% |
3,332.26 |
87.34 |
|
|
FIXED ASSETS |
% |
(38.03) |
(27.21) |
|
|
TOTAL ASSETS |
% |
5.58 |
0.17 |
|
ANNUAL
GROWTH : ACCEPTABLE
An annual sales growth is -24.21%.
Turnover has decreased from THB
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
45.96 |
Impressive |
Industrial Average |
14.40 |
|
Net Profit Margin |
10.89 |
Impressive |
Industrial Average |
2.24 |
|
Return on Assets |
68.05 |
Impressive |
Industrial Average |
7.52 |
|
Return on Equity |
70.10 |
Impressive |
Industrial Average |
19.87 |
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. Gross Profit Margin is 45.96%. 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. Net Profit Margin ratio is 10.89%,
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
68.05%, 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 70.1%, 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 Uptrend
Return on Equity Uptrend
LIQUIDITY :
IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
24.62 |
Impressive |
Industrial Average |
1.12 |
|
Quick Ratio |
24.62 |
|
|
|
|
Cash Conversion Cycle |
32.14 |
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|
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 24.62 times in 2012, increase from 1.87 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 24.62 times in 2012,
increase from 1.87 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 33 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.03 |
Impressive |
Industrial Average |
0.60 |
|
Debt to Equity Ratio |
0.03 |
Impressive |
Industrial Average |
1.50 |
|
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 0.03 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
22.34 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
6.25 |
Impressive |
Industrial Average |
3.36 |
|
Inventory Conversion Period |
- |
|
|
|
|
Inventory Turnover |
- |
|
Industrial Average |
11.27 |
|
Receivables Conversion Period |
35.30 |
|
|
|
|
Receivables Turnover |
10.34 |
Impressive |
Industrial Average |
7.16 |
|
Payables Conversion Period |
3.16 |
|
|
|
The company's Account Receivable Ratio is calculated as 10.34 and
The company's Total Asset Turnover is calculated as 6.25 times and 8.71
times in 2012 and 2011 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.63.51 |
|
|
1 |
Rs.100.94 |
|
Euro |
1 |
Rs.72.32 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
ANK |
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.