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MIRA INFORM REPORT
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Report No. : |
489553 |
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Report Date : |
07.02.2018 |
IDENTIFICATION DETAILS
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Name : |
NIMUT ENGINEERING LIMITED PARTNERSHIP |
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Registered Office : |
293 Onnuch Road, Pravet, Bangkok 10250 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
03.06.1987 |
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Com. Reg. No.: |
0103530015058 |
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Legal Form : |
Limited Partnership |
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Line of Business : |
The subject is engaged
in manufacturing, assembling,
distributing and exporting
wide range of
industrial machinery such
as wood chipper
machine, shredder machine,
shuffled machine, for
various industries such
as agricultural, wood
and paper, fertilizer
and animal feed. |
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No. of Employees : |
40 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
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Thailand |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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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.
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Source
: CIA |
Company
name
NIMUT ENGINEERING
LIMITED PARTNERSHIP
SUMMARY
BUSINESS ADDRESS : 293
ONNUCH ROAD, PRAVET,
BANGKOK 10250,
THAILAND
TELEPHONE
: [66] 2322-9175-6,
2322-7323, 2320-2823
FAX :
[66] 2321-9953
E-MAIL ADDRESS : info@nimut.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1987
REGISTRATION NO. : 0103530015058
TAX ID NO. : 3102422503
CAPITAL REGISTERED : BHT.
2,000,000
CAPITAL PAID-UP
: BHT.
2,000,000
PARTNER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : LIMITED PARTNERSHIP
EXECUTIVE
: MR. RATIPON RUENGNARAPHAT, THAI
MANAGING PARTNER
NO. OF
STAFF : 40
LINES OF
BUSINESS : INDUSTRIAL MACHINERY
MANUFACTURER,
ASSEMBLER, DISTRIBUTOR
AND EXPORTER
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
3, 1987 as a
limited partnership under
the registered name
NIMUT ENGINEERING LIMITED
PARTNERSHIP by Thai
partners, with the business
objective to manufacture
and assembly wide
range of industrial
machinery. It currently
employs 40 staff.
The subject’s
registered address is 293 Onnuch
Road, Pravet, Bangkok
10250, and
this is
the subject’s current
operation address.
AUTHORIZED PERSON
Mr. Ratipon
Ruengnaraphat signs on
behalf of the
subject with seal
affixed. He also
bears full financial responsibility by
law.
Note:
“Mr. Nipon
Likitrungrueng”
changed his name
and last name
to “Mr. Ratipon Ruengnaraphat” on
July 23, 2008.
MANAGEMENT
Mr. Ratipon
Ruengnaraphat
is the Managing
Partner.
He is Thai
nationality with the
age of 60
years old.
BUSINESS OPERATIONS
The subject is engaged
in manufacturing, assembling,
distributing and exporting
wide range of
industrial machinery such
as wood chipper
machine, shredder machine,
shuffled machine and
etc., for various
industries such as
agricultural, wood and
paper, fertilizer and
animal feed.
BRAND NAME
“NIMUT”
PURCHASE
Most of
raw materials are
purchased from local
suppliers, whereas parts
and equipment are
imported from Japan
and Taiwan.
SALES
80% of
the products is
sold locally by
wholesale to traders
and end-users, the
remaining 20% is
exported to India,
Indonesia, Malaysia, Vietnam,
Laos and Cambodia.
ASSOCIATED AND AFFILIATED
COMPANY
2-E Design &
Equipment Co., Ltd.
Business Type : Manufacturer and
distributor of metal parts for
automobile and machinery
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 credit term
of 30-60 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
T/T.
Exports are against
T/T.
BANKING
Bangkok Bank
Public Company Limited
EMPLOYMENT
The subject
employs approximately 40
staff.
LOCATION DETAILS
The premise
is owned for
administrative office, factory and
warehouse at the
heading address. Premise
is located in
commercial/residential area.
COMMENT
Despite a
decrease in sales
or service income
in 2016 comparing
to the previous year, it
obtained higher net
profit. Generally, the subject
operates a moderate
business with sufficient
profit on a
yearly basis.
FINANCIAL INFORMATION
The capital
was registered at
Bht. 2,000,000 which was
carried by 3 persons
as followed:
Name Age Amount
Mr. Ratipon
Ruengnaraphat
60 Bht. 100,000
[unlimited partner]
Address : 3/11 Moo
6, Onnuch Road,
Pravet, Bangkok
Mr. Chavalit Muhammad 59 Bht. 960,000
Address : 67/1 Moo
5, T. Monthong,
A.
Bangnampriew, Chachoengsao
Ms. Sunee
Likitrungrueng 66 Bht. 940,000
Address : 86/1-2 Moo 2,
T. Bangsamak,
A.
Bangpakong, Chachoengsao
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Revadee
Pornpatkul No. 8961
financial
BALANCE SHEET [BAHT]
The latest
financial figures published
for December 31, 2016,
2015 and 2014
were:
ASSETS
|
Current
Assets |
2016 |
2015 |
2014 |
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Cash and Cash
Equivalents |
7,423,105.31 |
9,710,908.32 |
12,004,200.11 |
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Trade Accounts and
Other Receivable |
6,244,273.33 |
7,484,440.46 |
3,779,477.03 |
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Short-term Loans |
2,700,000.00 |
3,600,000.00 |
- |
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Inventories |
2,589,212.87 |
3,242,818.00 |
2,196,554.36 |
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Total Current Assets |
18,956,591.51 |
24,038,166.78 |
17,980,231.50 |
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Property, Plant and
Equipment |
1,241,558.00 |
1,299,597.52 |
1,819,979.21 |
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Other
Non-current Assets |
117,900.00 |
412,850.00 |
294,950.00 |
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Total Assets |
20,316,049.51 |
25,750,614.30 |
20,095,160.71 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2016 |
2015 |
2014 |
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|
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Trade Accounts and
Other Payable |
12,656,521.64 |
17,874,391.40 |
11,144,701.52 |
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Accrued Income Tax |
338,212.59 |
647,102.34 |
89,929.45 |
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Total Current Liabilities |
12,994,734.23 |
18,521,493.74 |
11,234,630.97 |
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Total Liabilities |
12,994,734.23 |
18,521,493.74 |
11,234,630.97 |
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Shareholders’ Equity |
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Capital Paid |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
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Retained Earning -Unappropriated [Deficit] |
5,321,315.28 |
5,229,120.56 |
6,860,529.74 |
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Total Shareholders’
Equity |
7,321,315.28 |
7,229,120.56 |
8,860,529.74 |
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Total
Liabilities and Shareholders’ Equity |
20,316,049.51 |
25,750,614.30 |
20,095,160.71 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2016 |
2015 |
2014 |
|
|
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Sales or Services
Income |
130,454,604.79 |
133,626,150.95 |
131,951,845.27 |
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Other Income |
25,751.63 |
109,081.34 |
57,675.91 |
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Total Revenues |
130,480,356.42 |
133,735,232.29 |
132,009,521.18 |
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Expenses |
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Cost of Goods
Sold or Services |
115,437,993.31 |
119,747,990.48 |
119,534,339.30 |
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Selling Expenses |
6,905,844.25 |
6,814,455.51 |
6,630,093.86 |
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Administrative
Expenses |
1,786,230.96 |
1,698,304.85 |
1,894,883.30 |
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Total Expenses |
124,130,068.52 |
128,260,750.84 |
128,059,316.46 |
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Profit /[Loss] before
Financial Cost and Income Tax |
6,350,287.90 |
5,474,481.45 |
3,950,204.72 |
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Financial Cost |
- |
- |
- |
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Profit /[Loss]
before Income Tax |
6,350,287.90 |
5,474,481.45 |
3,950,204.72 |
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Income Tax |
[1,258,093.18] |
[1,105,890.63] |
[805,470.70] |
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Net Profit / [Loss] |
5,092,194.72 |
4,368,590.82 |
3,144,734.02 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
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LIQUIDITY
RATIO |
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CURRENT RATIO |
TIMES |
1.46 |
1.30 |
1.60 |
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QUICK RATIO |
TIMES |
1.26 |
1.12 |
1.40 |
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ACTIVITY
RATIO |
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FIXED ASSETS TURNOVER |
TIMES |
105.07 |
102.82 |
72.50 |
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TOTAL ASSETS TURNOVER |
TIMES |
6.42 |
5.19 |
6.57 |
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INVENTORY CONVERSION PERIOD |
DAYS |
8.19 |
9.88 |
6.71 |
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INVENTORY TURNOVER |
TIMES |
44.58 |
36.93 |
54.42 |
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RECEIVABLES CONVERSION PERIOD |
DAYS |
17.47 |
20.44 |
10.45 |
|
RECEIVABLES TURNOVER |
TIMES |
20.89 |
17.85 |
34.91 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
40.02 |
54.48 |
34.03 |
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CASH CONVERSION CYCLE |
DAYS |
(14.36) |
(24.15) |
(16.87) |
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PROFITABILITY
RATIO |
|
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COST OF GOODS SOLD |
% |
88.49 |
89.61 |
90.59 |
|
SELLING & ADMINISTRATION |
% |
6.66 |
6.37 |
6.46 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
11.53 |
10.47 |
9.45 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.87 |
4.10 |
2.99 |
|
NET PROFIT MARGIN |
% |
3.90 |
3.27 |
2.38 |
|
RETURN ON EQUITY |
% |
69.55 |
60.43 |
35.49 |
|
RETURN ON ASSET |
% |
25.06 |
16.96 |
15.65 |
|
EARNING PER SHARE |
BAHT |
254.61 |
218.43 |
157.24 |
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LEVERAGE
RATIO |
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DEBT RATIO |
TIMES |
0.64 |
0.72 |
0.56 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.77 |
2.56 |
1.27 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
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ANNUAL
GROWTH |
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SALES GROWTH |
% |
(2.37) |
1.27 |
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OPERATING PROFIT |
% |
16.00 |
38.59 |
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|
NET PROFIT |
% |
16.56 |
38.92 |
|
|
FIXED ASSETS |
% |
(4.47) |
(28.59) |
|
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TOTAL ASSETS |
% |
(21.10) |
28.14 |
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ANNUAL
GROWTH : ACCEPTABLE
An annual sales growth is -2.37%. Turnover has decreased
from THB
PROFITABILITY
: IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
11.53 |
Acceptable |
Industrial
Average |
41.63 |
|
Net Profit Margin |
3.90 |
Impressive |
Industrial
Average |
3.67 |
|
Return on Assets |
25.06 |
Impressive |
Industrial
Average |
5.45 |
|
Return on Equity |
69.55 |
Impressive |
Industrial
Average |
12.29 |
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 11.53%. 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. Net Profit
Margin ratio is 3.9%, higher figure when 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 25.06%, 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 69.55%, 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 |
1.46 |
Satisfactory |
Industrial
Average |
1.72 |
|
Quick Ratio |
1.26 |
|
|
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Cash Conversion Cycle |
(14.36) |
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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 1.46 times in 2016, increase from 1.3 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 1.26
times in 2016, increase from 1.12 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 -15 days.
Trend
of the average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE
: RISKY
LEVERAGE
RATIO
|
Debt Ratio |
0.64 |
Acceptable |
Industrial
Average |
0.56 |
|
Debt to Equity Ratio |
1.77 |
Risky |
Industrial
Average |
1.29 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which
are financed through debt. The company's figure is 0.64 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 |
105.07 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
6.42 |
Impressive |
Industrial
Average |
1.49 |
|
Inventory Conversion Period |
8.19 |
|
|
|
|
Inventory Turnover |
44.58 |
Impressive |
Industrial
Average |
3.26 |
|
Receivables Conversion Period |
17.47 |
|
|
|
|
Receivables Turnover |
20.89 |
Impressive |
Industrial
Average |
4.30 |
|
Payables Conversion Period |
40.02 |
|
|
|
The company's Account Receivable Ratio is calculated as
20.89 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 decreased from 10 days at the
end of 2015 to 8 days at the end of 2016. This represents a positive trend. And
Inventory turnover has increased from 36.93 times in year 2015 to 44.58 times
in year 2016.
The company's Total Asset Turnover is calculated as 6.42
times and 5.19 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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.27 |
|
|
1 |
INR 89.72 |
|
Euro |
1 |
INR 79.52 |
|
THB |
1 |
INR 2.04 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRA |
|
|
|
|
Report Prepared
by : |
TRU |
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.