MIRA INFORM REPORT
|
Report No. : |
346101 |
|
Report Date : |
26.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
THAI HUA HONG LIMITED PARTNERSHIP |
|
|
|
|
Registered Office : |
26/10 Nanglinchee Road,
Chongnonsi, Yannawa, Bangkok 10120 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
29.01.1958 |
|
|
|
|
Com. Reg. No.: |
0103501000501 |
|
|
|
|
Legal Form : |
Limited Partnership |
|
|
|
|
Line of Business : |
The subject is
engaged in importing
and distributing various kinds of
steels and metal
products such as
steel sheet, steel
bar, stainless steel,
aluminum sheets, stainless
steel sheet, as
well as plastic
resin [PP/HDPE/LDPE]. |
|
|
|
|
No. of Employees : |
16 |
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 |
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, 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
THAI HUA HONG LIMITED PARTNERSHIP
SUMMARY
BUSINESS ADDRESS : 26/10
NANGLINCHEE ROAD, CHONGNONSI,
YANNAWA, BANGKOK 10120, THAILAND
TELEPHONE : [66] 2287-2528-30,
2678-3938
FAX : [66] 2287-2527
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1958
REGISTRATION NO. : 0103501000501
TAX ID NO. : 3102137889
CAPITAL REGISTERED : BHT.
10,000,000
CAPITAL PAID-UP : BHT.
10,000,000
PARTNER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : LIMITED PARTNERSHIP
EXECUTIVE : MR.
CHAMRAS PATRATHIRANOND, THAI
MANAGING PARTNER
NO. OF STAFF : 16
LINES OF BUSINESS : STEELS AND
METAL PRODUCTS
IMPORTER AND 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 January
29, 1958 as a limited
partnership under the
registered name THAI
HUA HONG LIMITED
PARTNERSHIP by Thai partners,
the Patrathiranond family, with
the initial business
objective to operate
as a manufacturer
of aluminum wares.
At present, its
business becomes an
importer and distributor of steels
and metal products
to local market.
It currently employs 16
staff.
The subject’s registered address
is at 26/10 Nanglinchee Rd.,
Chongnonsi, Yannawa,
Bangkok 10120, and
this is the
subject current operation
address.
AUTHORIZED PERSON
Mr. Chamras Patrathiranond
Mr. Kijja Patrathiranond
Mr. Yuthana Patrathiranond
Mr. Kittidech Patrathiranond
Ms. Roongnapa Patrathiranond
Any of the
above partners can
sign on behalf
of the subject
with seal affixed.
They also bear
full financial responsibility by
law.
MANAGEMENT
Mr. Chamras Patrathiranond is
the Managing Partner.
He is Thai
nationality with the
age of 80
years old.
Ms. Pornthip Surabotsopon
is the Account
Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing various kinds
of steels and
metal products such
as steel sheet,
steel bar, stainless
steel, aluminum sheets,
stainless steel sheet,
as well as
plastic resin [PP/HDPE/LDPE].
PURCHASE
70% of the products
is purchased from
local suppliers and
agents, the remaining 30%
is imported from Japan,
Germany, Taiwan, Republic
of China, India and Singapore.
SALES [LOCAL]
100% of the
products is sold
locally by wholesale to dealers
and end-users.
MAJOR CUSTOMER
Diamond Brand 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.
SUBSIDIARY AND
AFFILIATED COMPANY
Diamond Brand Co., Ltd.
Business Type: Manufacturer &
distributor of “DIAMOND”
kitchenware products
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
Bangkok Bank Public
Co., Ltd.
[Head Office : 333 Rd.,
Silom, Bangrak, Bangkok 10500]
Krung Thai Bank
Public Co., Ltd.
[Head Office : 35 Sukhumvit
Rd., Klongtoeynua, Wattana,
Bangkok 10110]
EMPLOYMENT
The subject employs
16 staff. [office and sales staff]
LOCATION DETAILS
The premise is
rented for administrative office
and warehouse in a 3 storey
building of 2
row shop houses at
the heading address.
Premise is located
in a commercial/residential area.
Warehouse is also
located in Samutprakarn
Province.
COMMENT
The subject has been
firmly established for 57
years as an
importer and distributor of
steel and metal
products in local
market. The subject’s
sales revenues and
net profit in 2014 were
decreased comparing to the previous
year mainly due to a
slowdown of economy
and decrease in
demand of the
products from related
industries. Nevertheless, the
subject’s business is
still promising and operating
moderately.
FINANCIAL INFORMATION
The capital was
registered at Bht.
10,000,000 which was
carried by 20
partners as followed :
[As at October
18, 2015].
Name Age
Amount
Mr. Chamras Patrathiranond 80 Bht.
400,000 [Unlimited Partner]
Mr. Kijja Patrathiranond 79 Bht.
1,500,000 [Unlimited Partner]
Mr. Yuthana Patrathiranond 52 Bht.
950,000 [Unlimited Partner]
Mr. Kittidech Patrathiranond 46 Bht.
750,000 [Unlimited Partner]
Ms. Roongnapa Patrathiranond 45 Bht. 400,000 [Unlimited Partner]
Mr. Prapol Patrathiranond 64 Bht.
1,100,000
Ms. Sawitri Patrathiranond 38 Bht.
286,000
Ms. Roongtiwa Patrathiranond 46 Bht. 400,000
Ms. Jaruwan Patrathiranond 47 Bht.
300,000
Mr. Jaturon Patrathiranond 46 Bht.
300,000
Mr. Jaruwest Patrathiranond 45 Bht.
300,000
Mr. Jaruek Patrathiranond 48 Bht.
300,000
Ms. Roongtip Patrathiranond 38 Bht.
400,000
Ms. Roongrudee Patrathiranond 32 Bht.
400,000
Mr. Roongdej Patrathiranond 44 Bht.
1,000,000
Mrs. Thaowan Patratiranond 76 Bht.
300,000
Mrs. Apiradee Wanitchaidilok 41 Bht. 514,000
Mrs. Dujduen Patrathiranond 48 Bht.
200,000
Ms. Kathleeya Patrathiranond 21 Bht. 100,000
Mr. Yuthachai Patratiranond 19 Bht.
100,000
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Mr. Suwat Pacharawanich
No. 6582
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2014, 2013
& 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
222,682.35 |
2,892,482.12 |
256,416.13 |
|
Trade Accounts &
Other Receivable |
180,763,349.34 |
142,059,255.43 |
154,189,408.47 |
|
Inventories |
30,873,780.95 |
20,499,015.56 |
72,927,646.53 |
|
Other Current Assets
|
2,336,015.26 |
857,597.64 |
3,921,130.01 |
|
|
|
|
|
|
Total
Current Assets |
214,195,827.90 |
166,308,350.75 |
231,294,601.14 |
|
|
|
|
|
|
Fixed Assets |
6,526,508.56 |
7,561,858.24 |
6,390,864.64 |
|
Other Non-current Assets |
610.00 |
75,610.00 |
75,610.00 |
|
Total
Assets |
220,722,946.46 |
173,945,818.99 |
237,761,075.78 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft & Short-term
Loan From Financial Institutions |
140,493,859.56 |
108,757,626.53 |
149,598,409.22 |
|
Trade Accounts & Other
Payable |
59,454,192.01 |
45,658,048.18 |
68,822,593.16 |
|
Accrued Income Tax |
154,919.97 |
104,864.58 |
383,045.87 |
|
Other Current Liabilities |
594,950.14 |
180,943.41 |
713,416.24 |
|
|
|
|
|
|
Total Current Liabilities |
200,697,921.68 |
154,701,482.70 |
219,517,464.49 |
|
Total
Liabilities |
200,697,921.68 |
154,701,482.70 |
219,517,464.49 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Capital Paid |
10,000,000.00 |
10,000,000.00 |
10,000,000.00 |
|
Retained Earning - Unappropriated [Deficit] |
10,025,024.78 |
9,244,336.29 |
8,243,611.29 |
|
Total Shareholders' Equity |
20,025,024.78 |
19,244,336.29 |
18,243,611.29 |
|
Total Liabilities & Shareholders'
Equity |
220,722,946.46 |
173,945,818.99 |
237,761,075.78 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
220,772,185.17 |
252,051,280.13 |
247,479,134.28 |
|
Other Income |
374,390.49 |
376,463.83 |
4,251,437.68 |
|
Total
Revenues |
221,146,575.66 |
252,427,743.96 |
251,730,571.96 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
206,574,693.28 |
237,989,724.01 |
235,558,266.69 |
|
Selling Expenses |
1,854,969.55 |
1,726,790.98 |
1,810,997.48 |
|
Administrative Expenses |
3,302,964.19 |
2,824,299.97 |
2,709,426.87 |
|
Other Expenses |
607,391.28 |
673,246.36 |
35,795.23 |
|
Total Expenses
|
212,340,018.30 |
243,214,061.32 |
240,114,486.27 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
8,806,557.36 |
9,213,682.64 |
11,616,085.69 |
|
Financial Cost |
[7,710,948.90] |
[7,868,093.06] |
[9,601,247.45] |
|
Profit / [Loss] before Income
Tax |
1,095,608.46 |
1,345,589.58 |
2,014,838.24 |
|
Income Tax |
[314,919.97] |
[344,864.58] |
[544,045.87] |
|
|
|
|
|
|
Net
Profit / [Loss] |
780,688.49 |
1,000,725.00 |
1,470,792.37 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.07 |
1.08 |
1.05 |
|
QUICK RATIO |
TIMES |
0.90 |
0.94 |
0.70 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
33.83 |
33.33 |
38.72 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.00 |
1.45 |
1.04 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
54.55 |
31.44 |
113.00 |
|
INVENTORY TURNOVER |
TIMES |
6.69 |
11.61 |
3.23 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
298.85 |
205.72 |
227.41 |
|
RECEIVABLES TURNOVER |
TIMES |
1.22 |
1.77 |
1.61 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
105.05 |
70.02 |
106.64 |
|
CASH CONVERSION CYCLE |
DAYS |
248.35 |
167.13 |
233.77 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
93.57 |
94.42 |
95.18 |
|
SELLING & ADMINISTRATION |
% |
2.34 |
1.81 |
1.83 |
|
INTEREST |
% |
3.49 |
3.12 |
3.88 |
|
GROSS PROFIT MARGIN |
% |
6.60 |
5.73 |
6.53 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.99 |
3.66 |
4.69 |
|
NET PROFIT MARGIN |
% |
0.35 |
0.40 |
0.59 |
|
RETURN ON EQUITY |
% |
3.90 |
5.20 |
8.06 |
|
RETURN ON ASSET |
% |
0.35 |
0.58 |
0.62 |
|
EARNING PER SHARE |
BAHT |
7.81 |
10.01 |
14.71 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.91 |
0.89 |
0.92 |
|
DEBT TO EQUITY RATIO |
TIMES |
10.02 |
8.04 |
12.03 |
|
TIME INTEREST EARNED |
TIMES |
1.14 |
1.17 |
1.21 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(12.41) |
1.85 |
|
|
OPERATING PROFIT |
% |
(4.42) |
(20.68) |
|
|
NET PROFIT |
% |
(21.99) |
(31.96) |
|
|
FIXED ASSETS |
% |
(13.69) |
18.32 |
|
|
TOTAL ASSETS |
% |
26.89 |
(26.84) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -12.41%. Turnover has decreased from THB
252,051,280.13 in 2013 to THB 220,772,185.17 in 2014. While net profit has
decreased from THB 1,000,725.00 in 2013 to THB 780,688.49 in 2014. And total
assets has increased from THB 173,945,818.99 in 2013 to THB 220,722,946.46 in
2014.
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
6.60 |
Deteriorated |
Industrial Average |
14.51 |
|
Net Profit Margin |
0.35 |
Deteriorated |
Industrial Average |
2.15 |
|
Return on Assets |
0.35 |
Deteriorated |
Industrial Average |
11.90 |
|
Return on Equity |
3.90 |
Deteriorated |
Industrial Average |
36.37 |
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 6.6%. 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 0.35%.
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 0.35%.
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 3.9%.
Trend of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.07 |
Satisfactory |
Industrial Average |
1.35 |
|
Quick Ratio |
0.90 |
|
|
|
|
Cash Conversion Cycle |
248.35 |
|
|
|
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 1.07 times in 2014, decrease from 1.08 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 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 0.9 times in 2014,
decrease from 0.94 times, by excluding inventory, the company may have problems
meeting current liabilities.
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 249 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.91 |
Acceptable |
Industrial Average |
0.66 |
|
Debt to Equity Ratio |
10.02 |
Risky |
Industrial Average |
1.96 |
|
Times Interest Earned |
1.14 |
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 1.15 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 0.91 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 :
ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
33.83 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.00 |
Deteriorated |
Industrial Average |
5.54 |
|
Inventory Conversion Period |
54.55 |
|
|
|
|
Inventory Turnover |
6.69 |
Deteriorated |
Industrial Average |
17.86 |
|
Receivables Conversion Period |
298.85 |
|
|
|
|
Receivables Turnover |
1.22 |
Deteriorated |
Industrial Average |
9.39 |
|
Payables Conversion Period |
105.05 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.22 and 1.77 in
2014 and 2013 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 2014
decreased from 2013. 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 31 days at the
end of 2013 to 55 days at the end of 2014. This represents a negative trend.
And Inventory turnover has decreased from 11.61 times in year 2013 to 6.69
times in year 2014.
The company's Total Asset Turnover is calculated as 1 time and 1.45 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.64.88 |
|
|
1 |
Rs.99.89 |
|
Euro |
1 |
Rs.72.06 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TPT |
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.