|
|
|
MIRA INFORM REPORT
|
Report No. : |
489551 |
|
Report Date : |
07.02.2018 |
IDENTIFICATION DETAILS
|
Name : |
K&P ADVANCE CO., LTD. |
|
|
|
|
Registered Office : |
11/77-78 Sathupradit Road,
Chongnonsee, Yannawa, Bangkok 10120 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2016 |
|
|
|
|
Date of Incorporation : |
07.02.2000 |
|
|
|
|
Com. Reg. No.: |
0105543013379 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject is
engaged in distributing and
exporting various kinds
of petroleum products,
such as lubricant
oil, lubricant grease
and fuel oil. |
|
|
|
|
No. of Employees : |
8 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
Thailand |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
THAILAND - ECONOMIC OVERVIEW
With a relatively well-developed infrastructure, a free-enterprise economy,
and generally pro-investment policies, Thailand is highly dependent on
international trade, with exports accounting for about two-thirds of GDP.
Thailand’s exports include electronics, agricultural commodities, automobiles
and parts, and processed foods. The industry and service sectors produce about
90% of GDP. The agricultural sector, comprised mostly of small-scale farms,
contributes only 10% of GDP but employs about one-third of the labor force.
Thailand has attracted an estimated 3.0-4.5 million migrant workers, mostly
from neighboring countries.
Over the last few decades, Thailand has reduced poverty substantially.
In 2013, the Thai Government implemented a nationwide 300 baht (roughly $10)
per day minimum wage policy and deployed new tax reforms designed to lower
rates on middle-income earners.
Thailand’s economy is recovering from slow growth during the years since
the 2014 coup. Thailand’s economic fundamentals are sound, with low inflation,
low unemployment, and reasonable public and external debt levels. Tourism and
government spending - mostly on infrastructure and short-term stimulus measures
– have helped to boost the economy, and The Bank of Thailand has been
supportive, with several interest rate reductions.
Over the longer-term, household debt levels, political uncertainty, and
an aging population pose risks to growth.
|
Source
: CIA |
Company
name
K&P ADVANCE CO., LTD.
SUMMARY
BUSINESS ADDRESS : 11/77-78 SATHUPRADIT
ROAD, CHONGNONSEE,
YANNAWA,
BANGKOK 10120, THAILAND
TELEPHONE : [66] 2212-8712-4, 081 813-6102, 080 266-6166
FAX : [66] 2212-4395
E-MAIL ADDRESS : surapan@kandpadvance.com
surapan21@gmail.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2000
REGISTRATION NO. : 0105543013379
TAX ID NO. : 3030043139
CAPITAL REGISTERED : BHT.
2,000,000
CAPITAL PAID-UP : BHT.
2,000,000
SHAREHOLDER’S PROPORTION : THAI :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR.
PORNCHAI LAOSETTANUN, THAI
MANAGING DIRECTOR
NO. OF STAFF : 8
LINES OF BUSINESS : PETROLEUM PRODUCTS
DISTRIBUTOR AND
EXPORTER
|
CORPORATE PROFILE |
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The subject was
established on February 7, 2000
as a private
limited company under
the initially registered name “Advance Petrochem
International Co., Ltd.”
by Thai group.
On April 5,
2004, its registered
name was changed
to K&P ADVANCE
CO., LTD. Its
business objective is
to distribute various
kinds of petroleum
products to both
domestic and overseas
markets. It currently
employs 8 staff.
The subject’s registered
address is 11/77-78
Sathupradit Road, Chongnonsee,
Yannawa, Bangkok 10120,
and this is
the subject’s current
operation address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Pornchai Laosettanun |
|
Thai |
67 |
|
Mr. Thanachai Laosettanun |
|
Thai |
62 |
|
Mr. Surapan Laosettanun |
|
Thai |
37 |
|
Mr. Pongpun Laosettanun |
|
Thai |
31 |
|
Mr. Winyou Surangsrirat |
|
Thai |
60 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Pornchai Laosettanun
is the Managing
Director.
He is Thai
nationality with the
age of 67 years
old.
Mr. Surapan Laosettanun
is the Deputy
Managing Director/ Sales &
Marketing Manager.
He is Thai
nationality with the
age of 37 years
old.
BUSINESS OPERATIONS
The subject is
engaged in distributing and
exporting various kinds
of petroleum products,
such as lubricant
oil, lubricant grease
and fuel oil.
PURCHASE
100% of the
products is purchased
from local suppliers.
SALES
60% of the
products is sold
locally by wholesale
to manufacturers and
end-users, the remaining 40%
is exported to India, Malaysia, Indonesia, Cambodia, Vietnam, Philippines,
Pakistan and Myanmar.
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 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.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Company Limited
EMPLOYMENT
The subject currently
employs 8 staff.
LOCATION DETAILS
The premise is
owned for administrative office
and warehouse at
the heading address.
Premise is located
in commercial/residential area.
COMMENT
The subject is
engaged in distributing
and exporting petroleum
products for industrial
users. The subject’s
operating performance in
2016 has seen
an improvement with
an increase in
both sales or service income
and net profit
comparing to the
previous year, mainly caused
by an increase
in petroleum price
as well as
an improvement and
recovery of some
industries which drove
the demand of
the petroleum products
to rise relatively.
Generally, the subject’s business
remains solid and
profitable.
FINANCIAL INFORMATION
The capital was
registered at Bht. 500,000
divided into 5,000 shares
of Bht. 100
each
with fully paid.
On June 18,
2009, the registered
capital was increased
to Bht. 2,000,000
divided into 20,000
shares of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30,
2017]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Surapan Laosettanun Nationality: Thai Address : 11/77
Sathupradit Road, Chongnonsee,
Yannawa, Bangkok |
9,600 |
48.00 |
|
Mr. Pongpun Laosettanun Nationality: Thai Address : 11/77
Sathupradit Road, Chongnonsee,
Yannawa, Bangkok |
9,600 |
48.00 |
|
Mr. Pornchai Laosettanun Nationality: Thai Address : 11/77
Sathupradit Road, Chongnonsee,
Yannawa, Bangkok |
300 |
1.50 |
|
Mr. Winyou Surangsrirat Nationality: Thai Address : 142/14 Trok
Sapanyao, Sapansawang Road,
Siphaya, Bangrak, Bangkok |
300 |
1.50 |
|
Mr. Thanachai Laosettanun Nationality: Thai Address : 215/64
Pracharat Road, Bangsue, Bangkok |
200 |
1.00 |
Total Shareholders : 5
Share Structure [as
at April 30,
2017]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
20,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
5 |
20,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Sajeerat Thanapatveroj No. 11366
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2016, 2015
and 2014 were:
ASSETS
|
Current Assets |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Cash and Cash Equivalents |
1,975,843.31 |
44,662,881.21 |
2,065,808.66 |
|
Trade Accounts and
Other Receivable |
21,211,566.64 |
13,895,468.37 |
40,711,219.73 |
|
Inventories |
9,325,362.00 |
3,910,760.00 |
3,905,105.00 |
|
Other Current Assets
|
35,512,203.81 |
17,740,691.68 |
46,867,738.37 |
|
|
|
|
|
|
Total Current Assets
|
68,024,975.76 |
80,209,801.26 |
93,549,871.76 |
|
|
|
|
|
|
Property, Plant and Equipment |
1,615,457.63 |
2,320,501.51 |
3,010,981.57 |
|
Total Assets |
69,640,433.39 |
82,530,302.77 |
96,560,853.33 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Trade Accounts and
Other Payable |
52,274,565.92 |
68,935,337.22 |
48,935,371.16 |
|
Short-term Loans |
1,368,000.00 |
351,000.00 |
- |
|
Accrued Income Tax |
1,075,139.58 |
780,324.28 |
1,410,784.77 |
|
|
|
|
|
|
Total Current Liabilities |
54,717,705.50 |
70,066,661.50 |
50,346,155.93 |
|
Total Liabilities |
54,717,705.50 |
70,066,661.50 |
50,346,155.93 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 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 [Deficit] |
12,722,727.89 |
10,463,641.27 |
44,214,697.40 |
|
Total Shareholders' Equity |
14,922,727.89 |
12,463,641.27 |
46,214,697.40 |
|
Total Liabilities and
Shareholders' Equity |
69,640,433.39 |
82,530,302.77 |
96,560,853.33 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Sales or Services Income |
425,805,277.12 |
381,431,671.00 |
590,569,260.74 |
|
Interest Income |
28,288.58 |
28,769.85 |
65,027.08 |
|
Other Income |
3,042,975.08 |
2,776,736.21 |
4,004,046.78 |
|
Total Revenues |
428,876,540.78 |
384,237,177.06 |
594,638,334.60 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold or Service |
391,529,881.85 |
350,817,458.27 |
555,156,883.39 |
|
Selling Expenses |
16,261,219.19 |
19,220,574.43 |
20,504,729.85 |
|
Administrative Expenses |
7,021,872.69 |
5,478,738.09 |
5,296,878.73 |
|
Total Expenses |
414,812,973.73 |
375,516,770.79 |
580,958,491.97 |
|
|
|
|
|
|
Profit / [Loss] before Financial
Cost and Income
Tax |
14,063,567.05 |
8,720,406.27 |
13,679,842.63 |
|
Financial Cost |
[829,057.98] |
[790,849.79] |
[698,747.28] |
|
Profit / [Loss] before Income
Tax |
13,234,509.07 |
7,929,556.48 |
12,981,095.35 |
|
Income Tax |
[2,775,422.45] |
[1,680,612.61] |
[2,711,435.03] |
|
|
|
|
|
|
Net Profit / [Loss] |
10,459,086.62 |
6,248,943.87 |
10,269,660.32 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.24 |
1.14 |
1.86 |
|
QUICK RATIO |
TIMES |
0.42 |
0.84 |
0.85 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
263.58 |
164.37 |
196.14 |
|
TOTAL ASSETS TURNOVER |
TIMES |
6.11 |
4.62 |
6.12 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
8.69 |
4.07 |
2.57 |
|
INVENTORY TURNOVER |
TIMES |
41.99 |
89.71 |
142.16 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
18.18 |
13.30 |
25.16 |
|
RECEIVABLES TURNOVER |
TIMES |
20.07 |
27.45 |
14.51 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
48.73 |
71.72 |
32.17 |
|
CASH CONVERSION CYCLE |
DAYS |
(21.86) |
(54.36) |
(4.44) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
91.95 |
91.97 |
94.00 |
|
SELLING & ADMINISTRATION |
% |
5.47 |
6.48 |
4.37 |
|
INTEREST |
% |
0.19 |
0.21 |
0.12 |
|
GROSS PROFIT MARGIN |
% |
8.77 |
8.76 |
6.69 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.30 |
2.29 |
2.32 |
|
NET PROFIT MARGIN |
% |
2.46 |
1.64 |
1.74 |
|
RETURN ON EQUITY |
% |
70.09 |
50.14 |
22.22 |
|
RETURN ON ASSET |
% |
15.02 |
7.57 |
10.64 |
|
EARNING PER SHARE |
BAHT |
522.95 |
312.45 |
513.48 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.79 |
0.85 |
0.52 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.67 |
5.62 |
1.09 |
|
TIME INTEREST EARNED |
TIMES |
16.96 |
11.03 |
19.58 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
11.63 |
(35.41) |
|
|
OPERATING PROFIT |
% |
61.27 |
(36.25) |
|
|
NET PROFIT |
% |
67.37 |
(39.15) |
|
|
FIXED ASSETS |
% |
(30.38) |
(22.93) |
|
|
TOTAL ASSETS |
% |
(15.62) |
(14.53) |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 11.63%. Turnover has increased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.77 |
Impressive |
Industrial Average |
5.79 |
|
Net Profit Margin |
2.46 |
Satisfactory |
Industrial Average |
4.13 |
|
Return on Assets |
15.02 |
Impressive |
Industrial Average |
7.31 |
|
Return on Equity |
70.09 |
Impressive |
Industrial Average |
20.51 |
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. Gross Profit Margin is 8.77%. 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 2.46%.
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. Return on Assets ratio is
15.02%, 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 70.09%, 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 :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.24 |
Satisfactory |
Industrial Average |
2.13 |
|
Quick Ratio |
0.42 |
|
|
|
|
Cash Conversion Cycle |
(21.86) |
|
|
|
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 1.24 times in 2016, increase from 1.14 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 0.42 times in 2016,
decrease from 0.84 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 Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.79 |
Acceptable |
Industrial Average |
0.47 |
|
Debt to Equity Ratio |
3.67 |
Risky |
Industrial Average |
0.89 |
|
Times Interest Earned |
16.96 |
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 16.97 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 0.79 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
263.58 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
6.11 |
Impressive |
Industrial Average |
1.77 |
|
Inventory Conversion Period |
8.69 |
|
|
|
|
Inventory Turnover |
41.99 |
Impressive |
Industrial Average |
4.28 |
|
Receivables Conversion Period |
18.18 |
|
|
|
|
Receivables Turnover |
20.07 |
Impressive |
Industrial Average |
4.12 |
|
Payables Conversion Period |
48.73 |
|
|
|
The company's Account Receivable Ratio is calculated as 20.07 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 4 days at the end
of 2015 to 9 days at the end of 2016. This represents a negative trend. And
Inventory turnover has decreased from 89.71 times in year 2015 to 41.99 times
in year 2016.
The company's Total Asset Turnover is calculated as 6.11 times and 4.62
times in 2016 and 2015 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 |
INR 64.27 |
|
|
1 |
INR 89.72 |
|
Euro |
1 |
INR 79.52 |
|
Thai Baht |
1 |
INR 2.04 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
NIS |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.