MIRA INFORM REPORT
|
Report No. : |
312607 |
|
Report Date : |
17.03.2015 |
IDENTIFICATION DETAILS
|
Name : |
EMHUES CO., LTD. |
|
|
|
|
Registered Office : |
999/86 MOO 20,
Soi Boonmeesap,
Bangplee-Tamru Road, Bangpleeyai, Bangplee, Samutprakarn 10540, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
2011 |
|
|
|
|
Com. Reg. No.: |
0115554005071 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Printed Fabrics Designer, Distributor
and Exporter |
|
|
|
|
No. of Employees : |
4 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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
EMHUES CO.,
LTD.
SUMMARY
BUSINESS ADDRESS : 999/86 MOO 20,
SOI BOONMEESAP,
BANGPLEE-TAMRU ROAD,
BANGPLEEYAI,
BANGPLEE, SAMUTPRAKARN
10540,
THAILAND
TELEPHONE : [66] 2174-5174-5
FAX : [66] 2174-5176
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2011
REGISTRATION NO. : 0115554005071
TAX ID NO. : 3034434346
CAPITAL REGISTERED : BHT.
4,000,000
CAPITAL PAID-UP : BHT.
4,000,000
SHAREHOLDER’S PROPORTION : THAI : 51.00%
HONG KONG : 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. HENDRIK JACOB
STIJWEG, DUTCH
MANAGING DIRECTOR
NO. OF STAFF : 4
LINES OF BUSINESS : PRINTED FABRICS
DESIGNER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH LOW PERFORMANCE
HISTORY
The subject was
established on March 25,
2011 as a
private limited company under
the registered name EMHUES CO.,
LTD., by
Thai and Hong Kong investors,
with the business objective
to design and
distribute printed fabrics
to both domestic
and international markets.
It currently employs
4 staff.
Presently, it is a joint venture
between Kingsford [Thailand] Co.,
Ltd., and B. Van
Zuiden [Asia] Limited,
of Hong Kong,
with holding around
50.99% and 49%
of the subject’s
shares respectively.
The subject’s registered
address is 999/86 Moo 20, Soi
Boonmeesap, Bangplee-Tamru
Rd., Bangpleeyai, Bangplee,
Samutprakarn 10540, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Hendrik Jacob Stijweg |
|
Dutch |
69 |
AUTHORIZED
PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Hendrik Jacob Stijweg
is the Managing
Director.
He is Dutch
nationality with the
age of 69
years old.
BUSINESS
OPERATIONS
The subject is
engaged in designing, distributing
and exporting of
printed fabrics. The products
are designed by the subject,
while local manufacturer
is hired for the production.
PURCHASE
Raw materials and
components are purchased
from suppliers both
domestic and overseas,
mainly in Hong
Kong, India, Italy
and France.
MAJOR
SUPPLIER
B. Van Zuiden [Asia]
Limited : Hong Kong
SALES/SERVICES
The products are
sold and serviced
to both local
and overseas customers,
mainly in Japan,
Hong Kong and
Indonesia.
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 & services
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 employs
4 staff.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in industrial
area.
COMMENT
The subject operates
as designer, distributor
and exporter of
printed fabrics by
hiring local manufacturer
for the production. The subject’s operating
performance in 2013
was depressive with
a drastic decrease
in sales revenues
and net profit
comparing to the
previous year. Moreover, it
has accumulated deficit
retained earning and
deficit shareholders’ equity.
Nevertheless, the subject
has increased its
registered capital in
2015 which would
assist on the
company’s liquidity flow,
small credit amount
should be recommended on a
secured basis.
FINANCIAL INFORMATION
The capital was
registered at Bht. 1,000,000 divided into 10,000 shares of
Bht. 100 each.
On March 13,
2015, the 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
March 2, 2015]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Kingsford [Thailand] Co.,
Ltd. Nationality: Thai Address : 999/86
Moo 20, Soi Boonmeesap,
Bangplee-Tamru Rd.,
Bangpleeyai, Bangplee, Samutprakarn 10540 |
20,396 |
50.99 |
|
B. Van Zuiden [Asia]
Limited Nationality: Hong Kong Address : Unit
B1/F, Fast Industrial
Building, 658 Castle
Peak, Cheung Sha
Wan, Kowloon,
Hong Kong |
19,600 |
49.00 |
|
Ms. Puntip Utaicharoenpong Nationality: Thai Address : 1
Soi Ramindra 21
Yaek 24, Tharaeng,
Bangkhen, Bangkok |
4 |
0.01 |
Total Shareholders : 3
Share Structure
[as at
March 2, 2015]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
20,400 |
51.00 |
|
Foreign - Hong Kong |
1 |
19,600 |
49.00 |
|
Total |
3 |
40,000 |
100.00 |
NAME
OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Ms. Chavana Viwatpanachart No.
4712
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 |
184,986.61 |
81,257.70 |
404,048.95 |
|
Trade Accounts & Other Receivable |
1,051,827.93 |
1,366,521.36 |
7,982,791.32 |
|
Inventories |
3,094,072.03 |
3,808,656.70 |
4,396,275.67 |
|
Other Current Assets
|
709,440.27 |
706,203.97 |
728,370.97 |
|
|
|
|
|
|
Total Current Assets
|
5,039,326.84 |
5,962,639.73 |
13,511,486.91 |
|
|
|
|
|
|
Fixed Assets |
3,605,962.56 |
4,451,107.27 |
5,129,109.18 |
|
Intangible Assets |
32,780.49 |
46,309.14 |
59,840.93 |
|
Other Non - current Assets |
481,806.23 |
481,806.23 |
129,000.00 |
|
Total Assets |
9,159,876.12 |
10,941,862.37 |
18,829,437.02 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts & Other Payable
|
8,097,979.63 |
5,348,045.94 |
8,983,344.01 |
|
Payable Assets |
- |
2,604,844.12 |
3,716,762.38 |
|
Short-term Loan from Person & Related Company |
3,016,590.47 |
- |
2,615,950.80 |
|
Accrued Income Tax |
- |
- |
384,281.01 |
|
Other Current Liabilities |
7,794.69 |
21,650.01 |
25,941.68 |
|
|
|
|
|
|
Total Current Liabilities |
11,122,364.79 |
7,974,540.07 |
15,726,279.88 |
|
Long-term Loan from Person & Related Company |
- |
2,603,836.44 |
- |
|
Total Liabilities |
11,122,364.79 |
10,578,376.51 |
15,726,279.88 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid 20,000 shares
|
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
|
|
|
|
|
Capital Paid |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
Retained Earning -
Unappropriated |
[3,962,488.67] |
[1,636,514.14] |
1,103,157.14 |
|
Total Shareholders' Equity |
[1,962,488.67] |
363,485.86 |
3,103,157.14 |
|
Total Liabilities & Shareholders' Equity |
9,159,876.12 |
10,941,862.37 |
18,829,437.02 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
4,379,501.43 |
8,893,665.09 |
11,872,800.53 |
|
Other Income |
13,937.62 |
95,474.24 |
173,253.97 |
|
Total Revenues |
4,393,439.05 |
8,989,139.33 |
12,046,054.50 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
3,954,177.23 |
6,921,541.13 |
7,960,908.31 |
|
Selling Expenses |
251,632.92 |
1,120,554.62 |
537,074.13 |
|
Administrative Expenses |
2,513,603.43 |
3,686,714.86 |
2,060,633.91 |
|
Total Expenses |
6,719,413.58 |
11,728,810.61 |
10,558,616.35 |
|
Profit / [Loss] before Income
Tax |
[2,325,974.53] |
[2,739,671.28] |
1,487,438.15 |
|
Income Tax |
- |
- |
[384,281.01] |
|
|
|
|
|
|
Net Profit / [Loss] |
[2,325,974.53] |
[2,739,671.28] |
1,103,157.14 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.45 |
0.75 |
0.86 |
|
QUICK RATIO |
TIMES |
0.11 |
0.18 |
0.53 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.21 |
2.00 |
2.31 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.48 |
0.81 |
0.63 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
285.61 |
200.85 |
201.57 |
|
INVENTORY TURNOVER |
TIMES |
1.28 |
1.82 |
1.81 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
87.66 |
56.08 |
245.41 |
|
RECEIVABLES TURNOVER |
TIMES |
4.16 |
6.51 |
1.49 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
747.50 |
282.02 |
411.88 |
|
CASH CONVERSION CYCLE |
DAYS |
(374.24) |
(25.10) |
35.10 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
90.29 |
77.83 |
67.05 |
|
SELLING & ADMINISTRATION |
% |
63.14 |
54.05 |
21.88 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
10.03 |
23.25 |
34.41 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(53.11) |
(30.80) |
12.53 |
|
NET PROFIT MARGIN |
% |
(53.11) |
(30.80) |
9.29 |
|
RETURN ON EQUITY |
% |
- |
(753.72) |
35.55 |
|
RETURN ON ASSET |
% |
(25.39) |
(25.04) |
5.86 |
|
EARNING PER SHARE |
BAHT |
(116.30) |
(136.98) |
55.16 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
1.21 |
0.97 |
0.84 |
|
DEBT TO EQUITY RATIO |
TIMES |
(5.67) |
29.10 |
5.07 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(50.76) |
(25.09) |
|
|
OPERATING PROFIT |
% |
(15.10) |
(284.19) |
|
|
NET PROFIT |
% |
15.10 |
(348.35) |
|
|
FIXED ASSETS |
% |
(18.99) |
(13.22) |
|
|
TOTAL ASSETS |
% |
(16.29) |
(41.89) |
|
ANNUAL
GROWTH : RISKY
An annual sales growth is
-50.76%. Turnover has decreased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
10.03 |
Deteriorated |
Industrial Average |
21.15 |
|
Net Profit Margin |
(53.11) |
Deteriorated |
Industrial Average |
2.30 |
|
Return on Assets |
(25.39) |
Deteriorated |
Industrial Average |
3.95 |
|
Return on Equity |
- |
|
Industrial Average |
11.97 |
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 10.03%. 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 -53.11%.
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 -25.39%.
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 |
0.45 |
Risky |
Industrial Average |
1.47 |
|
Quick Ratio |
0.11 |
|
|
|
|
Cash Conversion Cycle |
(374.24) |
|
|
|
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 0.45 times in 2013, decrease from 0.75 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 0.11 times in 2013,
decrease from 0.18 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 -375 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
1.21 |
Risky |
Industrial Average |
0.65 |
|
Debt to Equity Ratio |
(5.67) |
Risky |
Industrial Average |
1.84 |
|
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 1.21 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 |
1.21 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.48 |
Deteriorated |
Industrial Average |
1.71 |
|
Inventory Conversion Period |
285.61 |
|
|
|
|
Inventory Turnover |
1.28 |
Deteriorated |
Industrial Average |
3.85 |
|
Receivables Conversion Period |
87.66 |
|
|
|
|
Receivables Turnover |
4.16 |
Impressive |
Industrial Average |
2.74 |
|
Payables Conversion Period |
747.50 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.16 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 201 days at the
end of 2012 to 286 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 1.82 times in year 2012 to 1.28 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.48 times and 0.81
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.62.67 |
|
|
1 |
Rs.92.46 |
|
Euro |
1 |
Rs.66.34 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
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.