MIRA INFORM REPORT
|
Report No. : |
321277 |
|
Report Date : |
09.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
E H M
INTERTRADING CO., LTD. |
|
|
|
|
Registered Office : |
15 Moo
12, T. Kudbod, A. Soengsang, Nakhonratchasima 30330 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
14.09.2012 |
|
|
|
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Com. Reg. No.: |
0305555003355 |
|
|
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Legal Form : |
Private Limited
Company |
|
|
|
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Line of Business : |
The subject is
engaged in distributing native and modified starches. |
|
|
|
|
No. of Employee : |
Not Available |
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 : |
No complaints |
|
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 has had a strong economy due in part to industrial and agriculture
exports - mostly electronics, agricultural commodities, automobiles and parts,
and processed foods. Thailand 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 both 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. Government
approved flood mitigation projects, worth $11.7 billion, were started in 2012
to prevent a repeat. Thai growth slowed in 2013 and has remained low since, as
the country faced political uncertainty and a coup in May 2014. The interim
government is implementing a special $11 billion short-term stimulus package
and has approved a budget of more than $80 billion to aid an economic rebound.
|
Source
: CIA |
Company
name
E H M
INTERTRADING CO., LTD.
SUMMARY
BUSINESS ADDRESS : 15
MOO 12, T. KUDBOD,
A. SOENGSANG,
NAKHONRATCHASIMA 30330,
THAILAND
TELEPHONE : [66] 44
457-040-4
FAX : [66]
44 447-067
E-MAIL ADDRESS : -
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2012
REGISTRATION NO.
: 0305555003355
TAX ID NO. : 3035321232
CAPITAL REGISTERED : BHT. 1,000,000
CAPITAL PAID-UP
: BHT.
1,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING
DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : N/A
NO. OF
STAFF : N/A
LINES OF
BUSINESS : NATIVE AND
MODIFIED STARCHES
DISTRIBUTOR
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
September 14, 2012 as
a private limited
company under the
registered name E H M INTERTRADING
CO., LTD., by Thai group.
Its business objective
was declared to
Commercial Registration Department
in order to
distribute native and
modified starches.
The subject’s
registered address is 15 Moo
12, T. Kudbod,
A. Soengsang,
Nakhonratchasima 30330,
and this is the subject’s
current operation address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms.
Sudawan Wangsupakijkosol |
|
Thai |
33 |
|
Mrs.
Yonlada Wangsupakitkosol |
|
Thai |
53 |
|
Mr.
Weerasak Wangsupakitkosol |
|
Thai |
60 |
AUTHORIZED PERSON
Any two
of the above
directors can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
N/A
BUSINESS OPERATION
The subject
is engaged in distributing native
and modified starches.
PURCHASE
100% of
the products is
purchased from local
supplier.
SALES
100% of
the products is
sold locally to
wholesalers, retailers, and
end-users.
RELATED AND
AFFILIATED COMPANIES
Eiamheng Tapioca
Industry Co., Ltd.
Business Type
: Manufacturer and
distributor of native
and modified starch
Eiamheng Modified
Starch Co., Ltd.
Business Type
: Manufacturer and
distributor of modified
starch
Eiamrungruang Industry
Co., Ltd.
Business Type
: Manufacturer and
distributor of native
and modified starch
Eiam E-san
Tapioca Starch Industry
Co., Ltd.
Business Type
: Manufacturer and
distributor of native
and modified starch
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.
BANKING
The subject
was not disclosed
its banker’s name.
LOCATION
DETAILS
The premise
is rented for administrative office
at the heading
address. Premise is
located in provincial.
COMMENT
The subject
was established in
2012 as a
distributor of native
and modified starches.
Subject reported its
strong business growth
in 2013 and
continue expanding steadily.
FINANCIAL
INFORMATION
The capital was
registered at Bht. 1,000,000
divided into 10,000 shares of
Bht. 100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE
[as
at April 30,
2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Sudawan Wangsupakijkosol Nationality: Thai Address :
15 Moo 12,
T. Kudbod, A. Soengsang, Nakhonratchasima |
4,000 |
40.00 |
|
Mrs. Yonlada Wangsupakitkosol Nationality: Thai Address :
15/1 Moo 12,
T. Kudbod, A. Soengsang, Nakhonratchasima |
3,000 |
30.00 |
|
Mr. Weerasak Wangsupakitkosol Nationality: Thai Address :
99 Moo 12, T. Kudbod,
A. Soengsang, Nakhonratchasima |
3,000 |
30.00 |
Total Shareholders
: 3
Share
Structure [as at
April 30, 2014]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
10,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
10,000 |
100.00 |
NAME
OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mrs. Saiyaporn Ruangrattanapaisal No.
8405
BALANCE
SHEET [BAHT]
The latest
financial figures published
for December 31,
2013 & 2012
were:
ASSETS
|
Current Assets |
2013 |
2012 |
|
|
|
|
|
Cash and Cash Equivalents |
3,007,694.41 |
975,375.00 |
|
Trade Account & Other Receivable |
42,067,653.83 |
- |
|
Inventories |
2,830,375.00 |
- |
|
Other Current
Assets |
22,705,984.07 |
245.00 |
|
|
|
|
|
Total Current
Assets |
70,611,707.31 |
975,620.00 |
|
|
|
|
|
Fixed
Assets |
232,227.26 |
- |
|
Total Assets |
70,843,934.57 |
975,620.00 |
LIABILITIES & SHAREHOLDERS' EQUITY
[BAHT]
|
Current
Liabilities |
2013 |
2012 |
|
|
|
|
|
Trade Account & Other Payable |
58,394,875.65 |
20,825.00 |
|
Accrued Income
Tax |
1,326,236.64 |
- |
|
Other Current
Liabilities |
81,183.20 |
- |
|
|
|
|
|
Total Current
Liabilities |
59,802,295.49 |
20,825.00 |
|
Total Liabilities |
59,802,295.49 |
20,825.00 |
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
Share
capital : Baht 100 value
authorized,
issued and fully
paid
share capital 10,000
shares |
1,000,000.00 |
1,000,000.00 |
|
|
|
|
|
Capital
Paid |
1,000,000.00 |
1,000,000.00 |
|
Retained Earning - Unappropriated [Deficit] |
10,041,639.08 |
[45,205.00] |
|
Total Shareholders' Equity |
11,041,639.08 |
954,795.00 |
|
Total Liabilities & Shareholders' Equity |
70,843,934.57 |
975,620.00 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
|
|
|
|
|
Sales Income |
340,240,973.58 |
- |
|
Total Revenues |
340,240,973.58 |
- |
|
Expenses |
|
|
|
|
|
|
|
Cost of
Goods Sold |
304,059,632.20 |
- |
|
Selling
Expenses |
1,104,690.84 |
- |
|
Administrative Expenses |
21,971,780.49 |
45,205.00 |
|
Total
Expenses |
327,136,103.53 |
45,205.00 |
|
|
|
|
|
Profit / [Loss]
before Financial Cost & Income Tax |
13,104,870.05 |
[45,205.00] |
|
Financial Cost |
[484,762.25] |
- |
|
|
|
|
|
Profit /
[Loss] before Income Tax
|
12,620,107.80 |
[45,205.00] |
|
Income Tax |
[2,533,263.72] |
- |
|
Net Profit / [Loss] |
10,086,844.08 |
[45,205.00] |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.18 |
46.85 |
|
QUICK RATIO |
TIMES |
0.75 |
46.84 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS
TURNOVER |
TIMES |
1,465.12 |
- |
|
TOTAL ASSETS
TURNOVER |
TIMES |
4.80 |
- |
|
INVENTORY
CONVERSION PERIOD |
DAYS |
3.40 |
- |
|
INVENTORY
TURNOVER |
TIMES |
107.43 |
- |
|
RECEIVABLES
CONVERSION PERIOD |
DAYS |
45.13 |
- |
|
RECEIVABLES
TURNOVER |
TIMES |
8.09 |
- |
|
PAYABLES
CONVERSION PERIOD |
DAYS |
70.10 |
- |
|
CASH CONVERSION
CYCLE |
DAYS |
(21.57) |
- |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS
SOLD |
% |
89.37 |
- |
|
SELLING &
ADMINISTRATION |
% |
6.78 |
- |
|
INTEREST |
% |
0.14 |
- |
|
GROSS PROFIT
MARGIN |
% |
10.63 |
- |
|
NET PROFIT
MARGIN BEFORE EX. ITEM |
% |
3.85 |
- |
|
NET PROFIT
MARGIN |
% |
2.96 |
- |
|
RETURN ON
EQUITY |
% |
91.35 |
(4.73) |
|
RETURN ON ASSET |
% |
14.24 |
(4.63) |
|
EARNING PER
SHARE |
BAHT |
1,008.68 |
(4.52) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.84 |
0.02 |
|
DEBT TO EQUITY
RATIO |
TIMES |
5.42 |
0.02 |
|
TIME INTEREST
EARNED |
TIMES |
27.03 |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
- |
- |
|
OPERATING
PROFIT |
% |
(29,089.87) |
- |
|
NET PROFIT |
% |
22,413.56 |
- |
|
FIXED ASSETS |
% |
- |
- |
|
TOTAL ASSETS |
% |
7,161.43 |
- |
PROFITABILITY :
IMPRESSIVE
PROFITABILITY RATIO
|
Gross Profit
Margin |
10.63 |
Deteriorated |
Industrial
Average |
81.44 |
|
Net Profit
Margin |
2.96 |
Impressive |
Industrial
Average |
0.59 |
|
Return on
Assets |
14.24 |
Impressive |
Industrial
Average |
1.56 |
|
Return on
Equity |
91.35 |
Impressive |
Industrial
Average |
4.63 |
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 10.63%. 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
2.96% 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 14.24%, 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 91.35%, 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 Downtrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.18 |
Impressive |
Industrial
Average |
1.16 |
|
Quick Ratio |
0.75 |
|
|
|
|
Cash Conversion
Cycle |
(21.57) |
|
|
|
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 1.18 times in 2013,
decreased from 46.85 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 0.75 times in 2013, decreased from 46.84 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 -22 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.84 |
Acceptable |
Industrial
Average |
0.69 |
|
Debt to Equity
Ratio |
5.42 |
Risky |
Industrial
Average |
2.18 |
|
Times Interest
Earned |
27.03 |
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
27.04 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 0.84 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets
Turnover |
1,465.12 |
Impressive |
Industrial
Average |
- |
|
Total Assets
Turnover |
4.80 |
Impressive |
Industrial
Average |
2.63 |
|
Inventory
Conversion Period |
3.40 |
|
|
|
|
Inventory
Turnover |
107.43 |
Impressive |
Industrial
Average |
7.58 |
|
Receivables
Conversion Period |
45.13 |
|
|
|
|
Receivables
Turnover |
8.09 |
Impressive |
Industrial
Average |
4.61 |
|
Payables
Conversion Period |
70.10 |
|
|
|
The company's
Account Receivable Ratio is calculated as 8.09 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 0 days at the end of 2012 to 3 days at the end of 2013. This
represents a negative trend. And Inventory turnover has increased from 0 times
in year 2012 to 107.43 times in year 2013.
The company's Total
Asset Turnover is calculated as 4.8 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 Uptrend
Inventory Turnover Uptrend
Receivables
Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.05 |
|
|
1 |
Rs.99.04 |
|
Euro |
1 |
Rs.71.76 |
INFORMATION DETAILS
|
Analysis Done by
: |
|
|
|
|
|
Report Prepared
by : |
SDA |
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.