MIRA INFORM REPORT
|
Report No. : |
346162 |
|
Report Date : |
24.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
SWITCH FLEX CO., LTD. |
|
|
|
|
Registered Office : |
30/119 Moo 1, T. Khok Kham, A. Muang, Samutsakorn 74000 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
15.06.2005 |
|
|
|
|
Com. Reg. No.: |
0105548077928 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in importing
and distributing wide
range of industrial machineries such
as bag making
machinery, flexible packaging
machinery, dry laminator
machinery, printing machinery,
cutting and slitting
machinery and etc., as
well as providing
after sales service |
|
|
|
|
No. of Employee : |
20 |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
Thailand |
B1 |
A2 |
|
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, and generally pro-investment policies Thailand has historically had a strong economy due in part to competitive 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 2-4 million migrant workers from neighboring countries, and faces labor shortages. Following the May 2014 coup d'etat, 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
SWITCH FLEX CO., LTD.
[FORMER
: MACHINE WORLD
INTERTRADE CO., LTD.]
SUMMARY
BUSINESS
ADDRESS : 30/119 MOO
1, T. KHOK KHAM,
A. MUANG,
SAMUTSAKORN 74000,
THAILAND
TELEPHONE : [66] 34
452-824, 452-290
FAX :
[66] 34
452-209
E-MAIL
ADDRESS : sf_info@switchflex.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2005
REGISTRATION
NO. : 0105548077928
TAX
ID NO. : 3031840935
CAPITAL REGISTERED : BHT. 5,000,000
CAPITAL PAID-UP : BHT.
5,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. THANAKORN SAE-LIM,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 20
LINES
OF BUSINESS : INDUSTRIAL MACHINERIES
IMPORTER AND
DISTRIBUTOR
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 June 15,
2005 as a
private limited company
under the originally
registered name “Machine
World Intertrade Co.,
Ltd.” by Thai
group. On August
8, 2005, its
registered name was
changed to SWITCH
FLEX CO., LTD.
Its business objective
is to import
and distribute wide
range of industrial
machineries for local
market. It currently
employs approximately 20
staff.
The
subject’s registered address
is 30/119 Moo
1, T. Khok Kham,
A. Muang,
Samutsakorn
74000, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Thanakorn Sae-Lim |
|
Thai |
33 |
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Thanakorn Sae-Lim is
the Managing Director.
He is Thai
nationality with the
age of 33
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing wide
range of industrial machineries such
as bag making
machinery, flexible packaging
machinery, dry laminator
machinery, printing machinery,
cutting and slitting
machinery and etc., as
well as providing
after sales service.
PURCHASE
Its products are
purchased from both
local and overseas
suppliers in Japan
and Republic of
China.
MAJOR
SUPPLIER
Switch
Flex Plate Making
Co., Ltd. : Thailand
SALES
100% of the
products is sold
locally to manufacturer and
end-users.
RELATED AND
AFFILIATED COMPANY
Switch Flex Plate
Making Co., Ltd. : 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
L/C at sight
or T/T.
BANKING
N/A
EMPLOYMENT
The
subject currently employs
approximately 20 office
staff and service
workers.
LOCATION
DETAILS
The
premise is owned for
administrative office at
the heading address.
Premise is located
in provincial.
COMMENT
The
subject is an
importer and distributor
of industrial machineries for
various industries. Without
financial figures in
2014, it is
difficult to predict
the company’s situation.
Nevertheless, the subject is
active and operates normally.
FINANCIAL
INFORMATION
The
capital was registered at Bht. 1,000,000 divided into 10,000
shares of Bht. 100
each with fully
paid.
On
March 10, 2006,
the registered capital
was increased to
Bht. 5,000,000 divided
into 50,000 shares
of Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
[as at April
30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Thanakorn Sae-Lim Nationality: Thai Address : 111/156
Moo 3, Thakam,
Bangkhunthien, Bangkok |
49,940 |
99.88 |
|
Mr. Kriengkrai Saelim Nationality: Thai Address : 118/68
Moo 7, Samaedam,
Bangkhunthien, Bangkok |
10 |
0.02 |
|
Ms. Wilaiporn Boonviset Nationality: Thai Address : 117/1 Moo
1, T. Huaytalaeng, A.
Huaytalaeng, Nakornratchasima |
10 |
0.02 |
|
Mr. Apichart Jeenbubpha Nationality: Thai Address : 956
Moo 4, T. Samrongnua, A. Muang,
Samutprakarn |
10 |
0.02 |
|
Mr. Krisada Jutimongkolkul Nationality: Thai Address : 10/165 Moo
3, T. Samrongnua, A. Muang,
Samutprakarn |
10 |
0.02 |
|
Mrs. Daranee Jirapongsakul Nationality: Thai Address : 66
Rama 1 Road, Rongmuang, Pathumwan, Bangkok |
10 |
0.02 |
|
Mrs. Supaporn Deeprasert Nationality: Thai Address : 1279/61
Moo 4, T. Samrongnua, A.
Muang, Samutprakarn |
10 |
0.02 |
Total Shareholders : 7
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
50,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
50,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Ms. Sukjai Sae-Eng No.
6723
Note:
The 2014 financial
statement was not
submitted to the
Commercial Registration Department.
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 |
1,042,638.94 |
1,195,668.47 |
445,651.98 |
|
Trade Accounts &
Other Receivable |
16,325,487.03 |
21,469,033.86 |
19,024,448.39 |
|
Inventories |
13,793,078.29 |
3,943,892.32 |
15,563,441.11 |
|
Other Current Assets
|
111,035.72 |
147,889.10 |
1,351,692.08 |
|
|
|
|
|
|
Total Current Assets
|
31,272,239.98 |
26,756,483.75 |
36,385,233.56 |
|
|
|
|
|
|
Fixed Assets |
3,138,261.46 |
2,300,932.68 |
760,276.12 |
|
Total Assets |
34,410,501.44 |
29,057,416.43 |
37,145,509.68 |
LIABILITIES & SHAREHOLDERS’
EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft |
- |
- |
9,482,613.12 |
|
Trade Accounts & Other
Payable |
11,927,435.84 |
25,345,530.91 |
14,485,527.06 |
|
Current Portion of Hire-purchase Contract Liabilities |
840,538.59 |
710,577.61 |
- |
|
Accrued Income Tax |
- |
314,080.72 |
- |
|
Other Current Liabilities |
124,425.43 |
469,359.35 |
15,463.93 |
|
|
|
|
|
|
Total Current Liabilities |
12,892,399.86 |
26,839,548.59 |
23,983,604.11 |
|
Loans from Director |
18,936,639.37 |
629,278.25 |
18,100,000.00 |
|
Hire-purchase Contract Liabilities, Net |
1,181,835.11 |
933,062.30 |
- |
|
Total Liabilities |
33,010,874.34 |
28,401,889.14 |
42,083,604.11 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized and
issued share capital
50,000 shares |
5,000,000.00 |
5,000,000.00 |
5,000,000.00 |
|
|
|
|
|
|
Capital Paid |
5,000,000.00 |
5,000,000.00 |
5,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
[3,600,372.90] |
[4,344,472.71] |
[9,938,094.43] |
|
Total Shareholders' Equity |
1,399,627.10 |
655,527.29 |
[4,938,094.43] |
|
Total Liabilities & Shareholders' Equity |
34,410,501.44 |
29,057,416.43 |
37,145,509.68 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
50,147,853.79 |
79,117,992.44 |
45,087,271.60 |
|
Service Income |
328,800.00 |
926,126.17 |
726,900.00 |
|
Other Income |
1,098,700.78 |
1,445,332.93 |
2.73 |
|
Total Revenues |
51,575,354.57 |
81,489,451.54 |
45,814,174.33 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
38,649,527.74 |
65,130,341.37 |
43,054,218.31 |
|
Selling Expenses |
8,249,122.74 |
6,176,708.04 |
3,688,926.37 |
|
Administrative Expenses |
3,118,064.85 |
3,736,229.71 |
3,406,349.50 |
|
Total Expenses |
50,016,715.33 |
75,043,279.12 |
50,149,494.18 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
1,558,639.24 |
6,446,172.42 |
[4,335,319.85] |
|
Financial Cost |
[452,912.71] |
[512,032.47] |
[445,759.82] |
|
Profit / [Loss] before Income
Tax |
1,105,726.53 |
5,934,139.95 |
[4,781,079.67] |
|
Income Tax |
[361,626.72] |
[340,518.23] |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
744,099.81 |
5,593,621.72 |
[4,781,079.67] |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.43 |
1.00 |
1.52 |
|
QUICK RATIO |
TIMES |
1.35 |
0.84 |
0.81 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
16.08 |
34.79 |
60.26 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.47 |
2.75 |
1.23 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
130.26 |
22.10 |
131.94 |
|
INVENTORY TURNOVER |
TIMES |
2.80 |
16.51 |
2.77 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
118.05 |
97.90 |
151.57 |
|
RECEIVABLES TURNOVER |
TIMES |
3.09 |
3.73 |
2.41 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
112.64 |
142.04 |
122.80 |
|
CASH CONVERSION CYCLE |
DAYS |
135.67 |
(22.04) |
160.71 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
76.57 |
81.37 |
93.98 |
|
SELLING & ADMINISTRATION |
% |
22.52 |
12.38 |
15.49 |
|
INTEREST |
% |
0.90 |
0.64 |
0.97 |
|
GROSS PROFIT MARGIN |
% |
25.61 |
20.44 |
6.02 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.09 |
8.05 |
(9.46) |
|
NET PROFIT MARGIN |
% |
1.47 |
6.99 |
(10.44) |
|
RETURN ON EQUITY |
% |
53.16 |
853.30 |
- |
|
RETURN ON ASSET |
% |
2.16 |
19.25 |
(12.87) |
|
EARNING PER SHARE |
BAHT |
14.88 |
111.87 |
(95.62) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.96 |
0.98 |
1.13 |
|
DEBT TO EQUITY RATIO |
TIMES |
23.59 |
43.33 |
(8.52) |
|
TIME INTEREST EARNED |
TIMES |
3.44 |
12.59 |
(9.73) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(36.94) |
74.71 |
|
|
OPERATING PROFIT |
% |
(75.82) |
(248.69) |
|
|
NET PROFIT |
% |
(86.70) |
216.99 |
|
|
FIXED ASSETS |
% |
36.39 |
202.64 |
|
|
TOTAL ASSETS |
% |
18.42 |
(21.77) |
|
ANNUAL
GROWTH : ACCEPTABLE
An annual sales growth is -36.94%. Turnover has decreased from THB
80,044,118.61 in 2012 to THB 50,476,653.79 in 2013. While net profit has
decreased from THB 5,593,621.72 in 2012 to THB 744,099.81 in 2013. And total
assets has increased from THB 29,057,416.43 in 2012 to THB 34,410,501.44 in
2013.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
25.61 |
Acceptable |
Industrial
Average |
42.77 |
|
Net Profit Margin |
1.47 |
Deteriorated |
Industrial
Average |
4.49 |
|
Return on Assets |
2.16 |
Deteriorated |
Industrial
Average |
6.46 |
|
Return on Equity |
53.16 |
Impressive |
Industrial
Average |
15.09 |
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 25.61%. 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 1.47%.
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 2.16%.
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 53.16%, 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 :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
2.43 |
Impressive |
Industrial
Average |
1.74 |
|
Quick Ratio |
1.35 |
|
|
|
|
Cash Conversion Cycle |
135.67 |
|
|
|
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 2.43 times in 2013, increase from 1 time, 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 1.35 times in 2013,
increase from 0.84 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 136 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.96 |
Acceptable |
Industrial
Average |
0.56 |
|
Debt to Equity Ratio |
23.59 |
Risky |
Industrial
Average |
1.26 |
|
Times Interest Earned |
3.44 |
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 3.45 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 0.96 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
16.08 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.47 |
Impressive |
Industrial
Average |
1.44 |
|
Inventory Conversion Period |
130.26 |
|
|
|
|
Inventory Turnover |
2.80 |
Satisfactory |
Industrial
Average |
3.05 |
|
Receivables Conversion Period |
118.05 |
|
|
|
|
Receivables Turnover |
3.09 |
Satisfactory |
Industrial
Average |
3.66 |
|
Payables Conversion Period |
112.64 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.09 and 3.73 in
2013 and 2012 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate revenue. A lower ratio may indicate
over extension and collection problems. Conversely, a higher ratio may indicate
an overtly stringent policy. In this case, the company's A/R ratio in 2013
decreased from 2012. This would suggest the company had deteriorated in the
management of its debt collections.
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 22 days at the
end of 2012 to 130 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 16.51 times in year 2012 to 2.8 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.47 times and 2.75
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.64.88 |
|
|
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.72.06 |
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.