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|
|
MIRA INFORM REPORT
|
Report No. : |
489931 |
|
Report Date : |
08.02.2018 |
IDENTIFICATION DETAILS
|
Name : |
ABI MANUFACTURING INT LTD. |
|
|
|
|
Registered Office : |
38/66 Moo 4, T. Lamlukka, a. Lamlukka, Pathumthani 12150 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2016 |
|
|
|
|
Date of Incorporation : |
27.06.2013 |
|
|
|
|
Com. Reg. No.: |
0105556102910 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer,
Distributor and Exporter of High Quality Alloys. |
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|
|
|
No. of Employees : |
18 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
C |
|
Credit Rating |
Explanation |
Rating Comments |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
Status : |
Moderate |
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|
|
|
Payment Behaviour : |
Slow |
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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
|
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 and address
ABI MANUFACTURING
INT LTD.
SUMMARY
BUSINESS
ADDRESS : 38/66
MOO 4, T. LAMLUKKA,
A. LAMLUKKA,
PATHUMTHANI 12150,
THAILAND
TELEPHONE : [66] 2150-6711-2,
081 793-8582
FAX :
[66] 2987-1190
E-MAIL
ADDRESS : abimfgint@gmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2013
REGISTRATION
NO. : 0105556102910
TAX
ID NO. : 3035922637
CAPITAL REGISTERED : BHT. 3,000,000
CAPITAL PAID-UP : BHT.
3,000,000
SHAREHOLDER’S PROPORTION : THAI : 0.007%
AMERICAN :
99.993%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. GARY WENDELL FORD, AMERICAN
MANAGING
DIRECTOR
NO.
OF STAFF : 18
LINES
OF BUSINESS : HIGH
QUALITY ALLOYS
MANUFACTURER, DISTRIBUTOR AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
LOW PERFORMANCE
HISTORY
The
subject was established
on June 27,
2013 as a
private limited company
under the registered
name ABI MANUFACTURING
INT LTD., by Thai
and American groups,
with the business
objective to manufacture,
distribute and export
high quality alloys
for jewelry industry.
It currently employs
18 staff.
The subject’s registered address is 38/66
Moo 4, T. Lamlukka, A. Lamlukka,
Pathumthani 12150, and this is the
subject’s current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
Mr. Gary Wendell Ford |
|
American |
67 |
|
Ms. Nongluck Julsuwan |
|
Thai |
41 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Gary Wendell Ford
is the Managing
Director.
He is American
nationality with the
age of 67
years old.
Ms. Nongluck Julsuwan is
the Assistant Managing
Director.
She is Thai
nationality with the
age of 41
years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing, distributing and
exporting various kinds
of high quality
alloys such as
gold alloys, platinum
alloys, palladium alloys
and others for
jewelry production industry.
PURCHASE
Raw materials are purchased both domestic and overseas suppliers in U.S.A.
MAJOR SUPPLIER
Allura
Metals Inc. :
U.S.A.
SALES
The products are sold to jewelry manufacturers of both local and
overseas in U.S.A., and Hong Kong.
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 for 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
T/T.
Exports are against
T/T.
BANKING
N/A
EMPLOYMENT
The
subject currently employs
18 staff.
LOCATION DETAILS
The
premise is owned for
administrative office, factory
and warehouse at the heading
address. Premise is
located in provincial,
on the outskirts
of Bangkok.
COMMENT
Despite
an increase in sales
or service income
and a decrease
in net loss
in 2016 comparing
to the previous year,
it still has
a large amount
of retained earning
(deficit) and total
shareholders’ equity (deficit)
which could more
or less affect
on its normal
operation, financial
liquidity flow and
expansion in the future.
Therefore, any credit
amount should be treated
on a secured basis
only.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 3,000,000
divided into 30,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS LISTED WERE
[As at
April 30, 2017]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Gary Wendell
Ford Nationality: American Address : Huntington
Beach, California, U.S.A. |
29,998 |
99.993 |
|
Mrs. Somkid Samakkarn Nationality: Thai Address : 15/3
Moo 2, T. Klongjed, A.
Klongluang, Pathumthani |
1 |
= 0.007 |
|
Ms. Nongluck Julsuwan Nationality: Thai Address : 66/133
Moo 5, T. Bangmuang, A. Muang, Samutprakarn |
1 |
|
Total Shareholders: 3
Share Structure
[As at April 30, 2017]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
2 |
0.007 |
|
Foreign - American |
1 |
29,998 |
99.993 |
|
Total |
3 |
30,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Ms. Nattaporn
Narkmahachalasin No. 6250
BALANCE SHEET [BAHT]
The
latest financial figures
published for December 31, 2016,
2015 and 2014
were:
ASSETS
|
Current Assets |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Cash and Cash Equivalents |
80,327.77 |
342,973.34 |
113,074.51 |
|
Trade Accounts and
Other Receivable |
774,200.30 |
640,838.64 |
682,948.67 |
|
Inventories |
6,531,545.09 |
1,554,269.34 |
1,559,566.85 |
|
Other Current Assets |
1,142,527.07 |
989,949.99 |
- |
|
Total Current Assets
|
8,528,600.23 |
3,528,031.31 |
2,355,590.03 |
|
|
|
|
|
|
Property, Plant and
Equipment |
86,432.40 |
145,375.00 |
- |
|
Intangible Assets |
19,113,549.80 |
19,692,572.19 |
18,749,286.97 |
|
Other Non-current Assets |
161,000.00 |
143,000.00 |
168,500.00 |
|
Total Assets |
27,889,582.43 |
23,508,978.50 |
21,273,377.00 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Bank Overdraft and Short-term Loan From Financial Institutions |
3,289,818.35 |
- |
- |
|
Trade Accounts and Other
Payable |
1,011,686.68 |
461,910.85 |
508,944.28 |
|
Current Portion of Long-term Liabilities |
123,408.07 |
123,408.07 |
- |
|
Short-term Loan |
54,000.00 |
- |
- |
|
Other Current Liabilities |
84,511.28 |
126,456.93 |
123,408.07 |
|
Total Current Liabilities |
4,563,424.38 |
711,775.85 |
632,352.35 |
|
|
|
|
|
|
Long-term Loan |
32,009,686.42 |
28,116,915.92 |
20,790,368.04 |
|
Long-term Estimation |
52,419.35 |
183,946.83 |
- |
|
Other Non-current Liabilities |
51,847.95 |
- |
307,354.91 |
|
Total Liabilities |
36,677,378.10 |
29,012,638.60 |
21,730,075.30 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, and
issued share capital
30,000 shares
|
3,000,000.00 |
3,000,000.00 |
3,000,000.00 |
|
Capital Paid |
3,000,000.00 |
3,000,000.00 |
3,000,000.00 |
|
Retained Earning -Unappropriated [Deficit] |
[11,787,795.67] |
[8,503,660.10] |
[3,456,698.30] |
|
Total Shareholders’ Equity |
[8,787,795.67] |
[5,503,660.10] |
[456,698.30] |
|
Total Liabilities and
Shareholders’ Equity |
27,889,582.43 |
23,508,978.50 |
21,273,377.00 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Sales or Services Income |
12,716,374.56 |
10,316,305.42 |
1,835,606.32 |
|
Other Income |
627,349.34 |
20,256.36 |
- |
|
Total Revenues |
13,343,723.90 |
10,336,561.78 |
1,835,606.32 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold or Services |
9,350,175.47 |
7,885,529.50 |
1,907,796.70 |
|
Selling Expenses |
1,058,550.60 |
831,292.17 |
352,120.13 |
|
Administrative Expenses |
4,580,807.61 |
5,412,178.96 |
2,047,800.47 |
|
Total Expenses |
14,989,533.68 |
14,129,000.63 |
4,307,717.30 |
|
|
|
|
|
|
Profit /[Loss] before
Financial Cost and Income Tax |
[1,645,809.78] |
[3,792,438.85] |
[2,472,110.98] |
|
Financial Cost |
[1,638,325.79] |
[1,254,522.95] |
[853,480.30] |
|
|
|
|
|
|
Profit /[Loss] before Income
Tax |
[3,284,135.57] |
[5,046,961.80] |
[3,325,591.28] |
|
Income Tax |
- |
- |
- |
|
Net Profit / [Loss] |
[3,284,135.57] |
[5,046,961.80] |
[3,325,591.28] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.87 |
4.96 |
3.73 |
|
QUICK RATIO |
TIMES |
0.19 |
1.38 |
1.26 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
147.13 |
70.96 |
- |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.46 |
0.44 |
0.09 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
254.97 |
71.94 |
298.38 |
|
INVENTORY TURNOVER |
TIMES |
1.43 |
5.07 |
1.22 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
22.22 |
22.67 |
135.80 |
|
RECEIVABLES TURNOVER |
TIMES |
16.43 |
16.10 |
2.69 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
39.49 |
21.38 |
97.37 |
|
CASH CONVERSION CYCLE |
DAYS |
237.70 |
73.24 |
336.81 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
73.53 |
76.44 |
103.93 |
|
SELLING & ADMINISTRATION |
% |
44.35 |
60.52 |
130.74 |
|
INTEREST |
% |
12.88 |
12.16 |
46.50 |
|
GROSS PROFIT MARGIN |
% |
31.40 |
23.76 |
(3.93) |
|
NET PROFIT MARGIN BEFORE EX.
ITEM |
% |
(12.94) |
(36.76) |
(134.68) |
|
NET PROFIT MARGIN |
% |
(25.83) |
(48.92) |
(181.17) |
|
RETURN ON EQUITY |
% |
- |
- |
- |
|
RETURN ON ASSET |
% |
(11.78) |
(21.47) |
(15.63) |
|
EARNING PER SHARE |
BAHT |
(109.47) |
(168.23) |
(110.85) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
1.32 |
1.23 |
1.02 |
|
DEBT TO EQUITY RATIO |
TIMES |
(4.17) |
(5.27) |
(47.58) |
|
TIME INTEREST EARNED |
TIMES |
(1.00) |
(3.02) |
(2.90) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
23.26 |
462.01 |
|
|
OPERATING PROFIT |
% |
(56.60) |
53.41 |
|
|
NET PROFIT |
% |
34.93 |
(51.76) |
|
|
FIXED ASSETS |
% |
(40.55) |
- |
|
|
TOTAL ASSETS |
% |
18.63 |
10.51 |
|
ANNUAL GROWTH:
SATISFACTORY
An annual sales growth is 23.26%. Turnover has increased from THB
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
31.40 |
Impressive |
Industrial
Average |
0.05 |
|
Net Profit Margin |
(25.83) |
Deteriorated |
Industrial
Average |
0.03 |
|
Return on Assets |
(11.78) |
Deteriorated |
Industrial
Average |
1.42 |
|
Return on Equity |
- |
|
Industrial
Average |
7.63 |
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 31.4%. 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 -25.83%.
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 -11.78%.
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 |
1.87 |
Impressive |
Industrial
Average |
1.12 |
|
Quick Ratio |
0.19 |
|
|
|
|
Cash Conversion Cycle |
237.70 |
|
|
|
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 1.87 times in 2016, decrease from 4.96 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 0.19 times in 2016,
decrease from 1.38 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 238 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
1.32 |
Risky |
Industrial
Average |
0.81 |
|
Debt to Equity Ratio |
(4.17) |
Acceptable |
Industrial
Average |
4.23 |
|
Times Interest Earned |
(1.00) |
Risky |
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 -1.01 lower than 1, so the company is not generating
enough cash from EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 1.32 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 |
147.13 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.46 |
Deteriorated |
Industrial
Average |
41.17 |
|
Inventory Conversion Period |
254.97 |
|
|
|
|
Inventory Turnover |
1.43 |
Acceptable |
Industrial
Average |
4.04 |
|
Receivables Conversion Period |
22.22 |
|
|
|
|
Receivables Turnover |
16.43 |
Deteriorated |
Industrial
Average |
90.81 |
|
Payables Conversion Period |
39.49 |
|
|
|
The company's Account Receivable Ratio is calculated as 16.43 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 72 days at the end of 2015 to 255
days at the end of 2016. This represents a negative trend. And Inventory
turnover has decreased from 5.07 times in year 2015 to 1.43 times in year 2016.
The company's Total Asset Turnover is calculated as 0.46 times and 0.44
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 Downtrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 64.14 |
|
|
1 |
INR 89.50 |
|
Euro |
1 |
INR 79.43 |
|
Thai Baht |
1 |
INR 2.02 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
NIY |
|
|
|
|
Report Prepared
by : |
NIT |
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.