MIRA INFORM REPORT
|
Report No. : |
321268 |
|
Report Date : |
09.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
THAI LEATHER
COATING CO., LTD. |
|
|
|
|
Registered Office : |
119, 119/1, 119/2 Moo
7, Liabklongpasicharoen-Fangnua Road, Suanluang, Krathumban, Samutsakorn 74110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.05.2014 |
|
|
|
|
Date of Incorporation : |
18.06.1990 |
|
|
|
|
Com. Reg. No.: |
0745533000601 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer,
Distributor and Exporter of PVC Leathers. |
|
|
|
|
No. of Employees : |
350 |
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 – 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
THAI LEATHER COATING CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 119, 119/1, 119/2 MOO 7,
LIABKLONGPASICHAROEN-
FANGNUA ROAD,
SUANLUANG, KRATHUMBAN,
SAMUTSAKORN 74110,
THAILAND
TELEPHONE : [66] 2431-0031,
2813-8955
FAX :
[66] 2420-8949,
2811-1620
E-MAIL
ADDRESS : sales@thaileathercoating.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1990
REGISTRATION
NO. : 0745533000601
[Former : SOR KOR. 445]
TAX
ID NO. : 3751004952
CAPITAL REGISTERED : BHT. 350,000,000
CAPITAL PAID-UP : BHT.
350,000,000
FISCAL YEAR CLOSING DATE : MAY
31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. NARONG CHONSAIPUN,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 350
LINES
OF BUSINESS : PVC
LEATHERS
MANUFACTURER,
DISTRIBUTOR AND EXPORTER
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 June
18, 1990 as
a private limited
company under the name
style THAI LEATHER
COATING CO., LTD., by
Thai and Taiwanese
groups, in order to manufacture PVC leathers for
both domestic and
international markets. It
currently employs approximately
350 staff.
The subject’s registered
address is 119,
119/1, 119/2 Moo 7, Liabklongpasicharoen-
Fangnua Rd., Suanluang, Krathumban,
Samutsakorn 74110, and this is
the subject’s current
operation
address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Narong Chonsaipun |
|
Thai |
59 |
|
Mrs. Soontree Chonaipun |
|
Thai |
45 |
AUTHORIZED
PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Narong Cholnsaipun is
the Managing Director
& Factory Manager.
He is Thai
nationality with the
age of 59
years old.
Mr. Samith Kraipatsapong is
the Marketing Manager.
He is Thai
nationality.
Mr. Danai Kainan is
the Export Manager.
He is Thai
nationality.
BUSINESS
OPERATIONS
The subject is
engaged in manufacturing
various kinds of
PVC and PU
leathers such
as synthetic leathers,
vinyl leathers and etc.
for furniture, shoes
and handbag industries.
PURCHASE
Raw materials are
purchased from suppliers
both domestic and
overseas in Taiwan,
Republic of China,
India, Japan, Australia
and Germany.
SALES
80% of the
products is sold
locally by wholesale
to dealers and
end-users.
EXPORT
20% of the
products is exported
to Taiwan, Singapore,
United States of
America,
Republic of China,
Malaysia, Korea, Japan
and European countries.
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 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
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
Krung Thai Bank
Public Co., Ltd.
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately
350 staff.
LOCATION
DETAILS
The
premise is rented
for administrative office,
factory and warehouse
at the heading
address.
Premise is located
in provincial.
COMMENT
Market demand of
PVC leather has
been slowing down
from shrinking consumption
of house hold
products including shoes
and handbags caused
by country’s economic sluggish
and decline consumers’
spending.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 10,000,000
divided into 10,000
shares of Bht.
1,000
each.
The
capital was increased
later as following:
Bht. 120,000,000 on
July 27, 1995
Bht. 200,000,000 on
June 1, 1998
Bht. 350,000,000 on
May 21, 1999
The
latest registered capital
was increased to
Bht. 350,000,000 divided into
350,000 shares of
Bht. 1,000 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
[as at
September 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Narong Chonsaipun Nationality: Thai Address : 119 Moo
7, T. Suanluang, A. Krathumban, Samutsakorn |
169,200 |
48.34 |
|
Mrs. Soontree Chonsaipun Nationality: Thai Address : 119 Moo
7, T. Suanluang, A. Krathumban, Samutsakorn |
133,500 |
38.14 |
|
Ms. Chutinun Chonsaipun Nationality: Thai Address : 119 Moo
7, T. Suanluang, A. Krathumban, Samutsakorn |
17,700 |
5.06 |
|
Ms. Supravee Chonsaipun Nationality: Thai Address : 119 Moo
7, T. Suanluang, A. Krathumban, Samutsakorn |
13,300 |
3.80 |
|
Mister Suprakrit Chonsaipun Nationality: Thai Address : 119
Moo 7, T. Suanluang, A. Krathumban, Samutsakorn |
13,300 |
3.80 |
|
Mr. Kittisak Saengchuentanom Nationality: Thai Address : 1/10
Moo 2, Or-Ngern,
Saimai, Bangkok |
3,000 |
0.86 |
Total Shareholders : 7
Share Structure [as
at September 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
350,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
6 |
350,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Mrs. Amornrat Soyson No. 1318
BALANCE
SHEET [BAHT]
The latest financial figures published
as at May
31, 2014, 2013
& 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
6,235,096.02 |
12,804,787.66 |
25,546,858.82 |
|
Trade Accounts &
Other Receivable |
152,205,401.62 |
158,020,629.60 |
163,561,759.23 |
|
Inventories |
258,578,121.41 |
262,130,692.76 |
236,515,268.57 |
|
Other Current Assets
|
9,982,099.36 |
25,147,993.44 |
17,276,762.08 |
|
|
|
|
|
|
Total Current Assets
|
427,000,718.41 |
458,104,103.46 |
442,900,648.70 |
|
Cash at Bank pledged as a Collateral |
4,234,479.92 |
4,152,265.07 |
4,057,606.22 |
|
Fixed Assets |
219,076,348.57 |
239,995,578.73 |
254,966,849.63 |
|
Other Non - current Assets |
52,342,940.44 |
8,278,079.38 |
641,436.07 |
|
Total Assets |
702,654,487.34 |
710,530,026.64 |
702,566,540.62 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
135,379,486.99 |
82,255,415.06 |
20,204,730.09 |
|
Trade Accounts & Other
Payable |
133,884,124.81 |
204,486,959.57 |
261,444,111.93 |
|
Current Portion of
Long-term Liabilities |
2,216,000.00 |
3,336,000.00 |
3,336,000.00 |
|
Accrued Income Tax |
2,283,885.05 |
109,585.54 |
2,368,316.85 |
|
Other Current Liabilities |
242,756.82 |
222,385.65 |
160,032.28 |
|
|
|
|
|
|
Total Current Liabilities |
274,006,253.67 |
290,410,345.82 |
287,513,191.15 |
|
Long-term Loan |
- |
2,216,000.00 |
5,552,000.00 |
|
Total Liabilities |
274,006,253.67 |
292,626,345.82 |
293,065,191.15 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 350,000 shares |
350,000,000.00 |
350,000,000.00 |
350,000,000.00 |
|
|
|
|
|
|
Capital Paid |
350,000,000.00 |
350,000,000.00 |
350,000,000.00 |
|
Retained Earning Unappropriated |
78,648,233.67 |
67,903,680.82 |
59,501,349.47 |
|
Total Shareholders' Equity |
428,648,233.67 |
417,903,680.82 |
409,501,349.47 |
|
Total Liabilities & Shareholders' Equity |
702,654,487.34 |
710,530,026.64 |
702,566,540.62 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
660,865,494.54 |
669,833,101.23 |
724,030,240.68 |
|
Gain on Exchange Rate |
966,516.60 |
2,357,216.30 |
584,009.81 |
|
Compensation Income |
- |
11,868,291.05 |
17,789,094.55 |
|
Other Income |
508,508.61 |
625,521.45 |
317,031.51 |
|
Total Revenues |
662,340,519.75 |
684,684,130.03 |
742,720,376.55 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
606,283,856.19 |
633,910,861.98 |
694,782,434.74 |
|
Selling Expenses |
7,131,743.66 |
6,562,030.27 |
5,886,400.90 |
|
Administrative Expenses |
31,532,243.06 |
29,241,479.09 |
25,071,325.91 |
|
Total Expenses |
644,947,842.91 |
669,714,371.34 |
725,740,161.55 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
17,392,676.84 |
14,969,758,.69 |
16,980,215.00 |
|
Financial Cost |
[3,058,408.49] |
[4,056,885.65] |
[1,991,217.03] |
|
Profit / [Loss] before Income
Tax |
14,334,268.35 |
10,912,873.04 |
14,988,997.97 |
|
Income Tax |
[3,587,715.50] |
[2,510,541.69] |
[4,768,698.73] |
|
|
|
|
|
|
Net Profit / [Loss] |
10,744,552.85 |
8,402,331.35 |
10,220,299.24 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.56 |
1.58 |
1.54 |
|
QUICK RATIO |
TIMES |
0.58 |
0.59 |
0.66 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.02 |
2.79 |
2.84 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.94 |
0.94 |
1.03 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
155.67 |
150.93 |
124.25 |
|
INVENTORY TURNOVER |
TIMES |
2.34 |
2.42 |
2.94 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
84.06 |
86.11 |
82.46 |
|
RECEIVABLES TURNOVER |
TIMES |
4.34 |
4.24 |
4.43 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
80.60 |
117.74 |
137.35 |
|
CASH CONVERSION CYCLE |
DAYS |
159.13 |
119.30 |
69.36 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.74 |
94.64 |
95.96 |
|
SELLING & ADMINISTRATION |
% |
5.85 |
5.35 |
4.28 |
|
INTEREST |
% |
0.46 |
0.61 |
0.28 |
|
GROSS PROFIT MARGIN |
% |
8.48 |
7.58 |
6.62 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.63 |
2.23 |
2.35 |
|
NET PROFIT MARGIN |
% |
1.63 |
1.25 |
1.41 |
|
RETURN ON EQUITY |
% |
2.51 |
2.01 |
2.50 |
|
RETURN ON ASSET |
% |
1.53 |
1.18 |
1.45 |
|
EARNING PER SHARE |
BAHT |
30.70 |
24.01 |
29.20 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.39 |
0.41 |
0.42 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.64 |
0.70 |
0.72 |
|
TIME INTEREST EARNED |
TIMES |
5.69 |
3.69 |
8.53 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(1.34) |
(7.49) |
|
|
OPERATING PROFIT |
% |
16.19 |
(11.84) |
|
|
NET PROFIT |
% |
27.88 |
(17.79) |
|
|
FIXED ASSETS |
% |
(8.72) |
(5.87) |
|
|
TOTAL ASSETS |
% |
(1.11) |
1.13 |
|
ANNUAL
GROWTH: ACCEPTABLE
An annual sales growth is -1.34%. Turnover has decreased from THB
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.48 |
Impressive |
Industrial
Average |
5.62 |
|
Net Profit Margin |
1.63 |
Deteriorated |
Industrial
Average |
8.20 |
|
Return on Assets |
1.53 |
Deteriorated |
Industrial
Average |
16.62 |
|
Return on Equity |
2.51 |
Deteriorated |
Industrial
Average |
34.37 |
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 8.48%. 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 1.63%.
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 1.53%.
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 2.51%.
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 |
1.56 |
Impressive |
Industrial
Average |
1.29 |
|
Quick Ratio |
0.58 |
|
|
|
|
Cash Conversion Cycle |
159.13 |
|
|
|
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 1.56 times in 2014, decreased from 1.58 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 0.58 times in 2014,
decreased from 0.59 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 160 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE : EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.39 |
Impressive |
Industrial
Average |
0.52 |
|
Debt to Equity Ratio |
0.64 |
Impressive |
Industrial
Average |
1.10 |
|
Times Interest Earned |
5.69 |
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 lower the percentage means that the company is using less leverage
and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 5.69 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 0.39 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 : ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.02 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.94 |
Deteriorated |
Industrial
Average |
2.03 |
|
Inventory Conversion Period |
155.67 |
|
|
|
|
Inventory Turnover |
2.34 |
Deteriorated |
Industrial
Average |
5.93 |
|
Receivables Conversion Period |
84.06 |
|
|
|
|
Receivables Turnover |
4.34 |
Acceptable |
Industrial
Average |
7.46 |
|
Payables Conversion Period |
80.60 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.34 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 151 days at the
end of 2013 to 156 days at the end of 2014. This represents a negative trend.
And Inventory turnover has decreased from 2.42 times in year 2013 to 2.34 times
in year 2014.
The company's Total Asset Turnover is calculated as 0.94 times and 0.94
times in 2014 and 2013 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
: |
RAS |
|
|
|
|
Report Prepared
by : |
NIT |
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.