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|
|
MIRA INFORM REPORT
|
Report No. : |
497100 |
|
Report Date : |
13.03.2018 |
IDENTIFICATION DETAILS
|
Name : |
EXTRACOAT CO., LTD. |
|
|
|
|
Registered Office : |
8 Phruksachat 3
Road, T. Banpong, Banpong,
Ratchaburi 70110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2016 |
|
|
|
|
Date of Incorporation : |
01.02.2013 |
|
|
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Com. Reg. No.: |
0705556000259 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject is engaged
in providing wide
range of thermal
spraying and on-site
services such as
HVOF coatings for
corrosion and wear
protection, onsite grinding,
surface re-sharpening,
Anilox roll cleaning, E-CARB and
E-SLIDEX, mainly to
papers, steels, oil
and cement industries. |
|
|
|
|
No. of Employees : |
16 |
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 : |
Satisfactory |
|
|
|
|
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
|
Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
|
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
EXTRACOAT CO.,
LTD.
SUMMARY
BUSINESS ADDRESS : 8
PHRUKSACHAT 3 ROAD,
T. BANPONG, BANPONG,
RATCHABURI 70110,
THAILAND
TELEPHONE : [66] 32
201-235, 081 686-1513,
081 983-8491
FAX : [66] 32
201-016
E-MAIL ADDRESS : ratthachai@extracoat.co.th
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2013
REGISTRATION NO. : 0705556000259
TAX ID NO. : 3035627570
CAPITAL REGISTERED : BHT.
3,000,000
CAPITAL PAID-UP : BHT.
3,000,000
SHAREHOLDER’S PROPORTION : THAI : 67.00%
FINN :
33.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR. RATTHACHAI NAMYUYEN,
THAI
MANAGING DIRECTOR
NO. OF STAFF : 16
LINES OF BUSINESS : THERMAL SPRAYING
AND ON-SITE
SERVICE PROVIDER
|
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 February
1, 2013 as a
private limited company
under the registered
name EXTRACOAT CO.,
LTD., by Thai and
Finn groups, with
the business objective
to provide thermal
spraying and on-site
service. It currently
employs 16 staff.
The subject’s registered
address is 8
Phruksachat 3 Road,
T. Banpong, A. Banpong, Ratchaburi
70110, and this
is the subject’s
current operation address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ratthachai Namyuyen |
|
Thai |
42 |
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Ratthachai Namyuyen is
the Managing Director.
He is Thai
nationality with the
age of 42
years old.
BUSINESS OPERATIONS
The subject is
engaged in providing
wide range of
thermal spraying and on-site services
such as HVOF
coatings for corrosion
and wear protection,
onsite grinding, surface
re-sharpening, Anilox roll cleaning, E-CARB and
E-SLIDEX, mainly to
papers, steels, oil
and cement industries.
PURCHASE
100% of purchasing
is from local
suppliers.
SALES/ SERVICES
100% of the
products is served locally to
manufacturers and end-users.
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/services 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.
BANKING
N/A
EMPLOYMENT
The subject currently
employs 16 staff.
LOCATION DETAILS
The premise is
owned for administrative office
and workshop at
the heading address.
Premise is located
in provincial.
COMMENT
The subject’s operating
performance in 2016
was slowdown comparing
to the previous
year from a
decrease in both
sales or service
income and net
profit, mainly caused
by slowdown of
economy and related
industries. Nevertheless, it operates
a moderate business
and remains profitable.
FINANCIAL INFORMATION
The capital was
registered at Bht.
2,000,000 divided into
20,000 shares of
Bht. 100
each with fully
paid.
On May 17,
2013, the registered
capital was increased
to Bht. 3,000,000
divided into
30,000 shares of
Bht. 100 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE : [as
at September 11,
2017]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Ratthachai Namyuyen Nationality: Thai Address : 75
Moo 4, T. Pakraed,
A. Banpong, Ratchaburi |
10,200 |
34.00 |
|
Mr. Mika Ander O
Immonen Nationality: Finn Address : 31/30
Moo 12, Chaihad
Jomthien Road, T. Nongprue, A. Banglamung, Chonburi
|
9,900 |
33.00 |
|
Mr. Chinnapat Thonthan Nationality: Thai Address : 201/1
Soi Ramkhamhaeng 110,
Sapansung, Bangkok |
9,900 |
33.00 |
Total Shareholders : 3
Share Structure [as
at September 11,
2017]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
20,100 |
67.00 |
|
Foreign - Finn |
1 |
9,900 |
33.00 |
|
Total |
3 |
30,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Supatra Klomklom No.
7048
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 |
877,874.68 |
593,241.89 |
185,934.01 |
|
Trade Accounts and
Other Receivable |
4,925,039.77 |
5,133,153.04 |
2,165,835.90 |
|
Inventories |
- |
- |
194,171.43 |
|
Other Current Assets |
896,536.75 |
105,236.80 |
91,289.32 |
|
Total Current Assets
|
6,699,451.20 |
5,831,631.73 |
2,637,230.66 |
|
|
|
|
|
|
Long-term Loans |
3,200,000.00 |
700,000.00 |
- |
|
Property, Plant and
Equipment |
8,189,713.80 |
3,946,674.66 |
3,653,035.54 |
|
Intangible Assets |
41,627.03 |
- |
- |
|
Other Non-current Assets |
1,500.00 |
- |
- |
|
Total Assets |
18,132,292.03 |
10,478,306.39 |
6,290,266.20 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Trade Accounts and Other
Payable |
2,736,334.75 |
806,596.43 |
1,582,353.97 |
|
Short-term Loan |
1,200,000.00 |
- |
327,000.00 |
|
Accrued Income Tax |
- |
3,998.90 |
2,985.54 |
|
Other Current Liabilities |
134,737.32 |
171,014.43 |
32,868.61 |
|
Total Current Liabilities |
4,071,072.07 |
981,609.76 |
1,945,208.12 |
|
|
|
|
|
|
Long-term Loan |
1,910,520.55 |
- |
- |
|
Total Liabilities |
5,981,592.62 |
981,609.76 |
1,945,208.12 |
|
|
|
|
|
|
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] |
9,150,699.41 |
6,496,696.63 |
1,345,058.08 |
|
Total Shareholders’ Equity |
12,150,699.41 |
9,496,696.63 |
4,345,058.08 |
|
Total Liabilities and
Shareholders’ Equity |
18,132,292.03 |
10,478,306.39 |
6,290,266.20 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Sales or Services Income |
22,973,238.80 |
24,499,158.19 |
11,206,952.93 |
|
Other Income |
27,680.41 |
286,468.87 |
193,351.02 |
|
Total Revenues |
23,000,919.21 |
24,785,627.06 |
11,400,303.95 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold or Services |
15,759,219.80 |
9,735,741.51 |
4,611,407.49 |
|
Selling Expenses |
1,046,045.97 |
1,197,712.15 |
310,393.53 |
|
Administrative Expenses |
3,521,244.62 |
8,090,122.10 |
4,064,797.31 |
|
Total Expenses |
20,326,510.39 |
19,023,575.76 |
8,986,598.33 |
|
|
|
|
|
|
Profit /[Loss] before
Financial Cost and Income Tax |
2,674,408.82 |
5,762,051.30 |
2,413,705.62 |
|
Financial Cost |
[20,406.04] |
[61,197.00] |
[12,800.40] |
|
|
|
|
|
|
Profit /[Loss] before Income
Tax |
2,654,002.78 |
5,700,854.30 |
2,400,905.22 |
|
Income Tax |
- |
[549,215.75] |
[228,517.32] |
|
Net Profit / [Loss] |
2,654,002.78 |
5,151,638.55 |
2,172,387.90 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.65 |
5.94 |
1.36 |
|
QUICK RATIO |
TIMES |
1.43 |
5.83 |
1.21 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.81 |
6.21 |
3.07 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.27 |
2.34 |
1.78 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
- |
- |
15.37 |
|
INVENTORY TURNOVER |
TIMES |
- |
- |
23.75 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
78.25 |
76.48 |
70.54 |
|
RECEIVABLES TURNOVER |
TIMES |
4.66 |
4.77 |
5.17 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
63.38 |
30.24 |
125.25 |
|
CASH CONVERSION CYCLE |
DAYS |
14.87 |
46.24 |
(39.34) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
68.60 |
39.74 |
41.15 |
|
SELLING & ADMINISTRATION |
% |
19.88 |
37.91 |
39.04 |
|
INTEREST |
% |
0.09 |
0.25 |
0.11 |
|
GROSS PROFIT MARGIN |
% |
31.52 |
61.43 |
60.58 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
11.64 |
23.52 |
21.54 |
|
NET PROFIT MARGIN |
% |
11.55 |
21.03 |
19.38 |
|
RETURN ON EQUITY |
% |
21.84 |
54.25 |
50.00 |
|
RETURN ON ASSET |
% |
14.64 |
49.16 |
34.54 |
|
EARNING PER SHARE |
BAHT |
88.47 |
171.72 |
72.41 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.33 |
0.09 |
0.31 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.49 |
0.10 |
0.45 |
|
TIME INTEREST EARNED |
TIMES |
131.06 |
94.16 |
188.56 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(6.23) |
118.61 |
|
|
OPERATING PROFIT |
% |
(53.59) |
138.72 |
|
|
NET PROFIT |
% |
(48.48) |
137.14 |
|
|
FIXED ASSETS |
% |
107.51 |
8.04 |
|
|
TOTAL ASSETS |
% |
73.05 |
66.58 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -6.23%. Turnover has decreased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
31.52 |
Deteriorated |
Industrial Average |
185.09 |
|
Net Profit Margin |
11.55 |
Impressive |
Industrial Average |
7.60 |
|
Return on Assets |
14.64 |
Impressive |
Industrial Average |
10.21 |
|
Return on Equity |
21.84 |
Impressive |
Industrial Average |
15.50 |
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 31.52%. 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 11.55%,
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. Net Profit Margin ratio is
14.64%, 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 21.84%, 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 |
1.65 |
Acceptable |
Industrial Average |
3.34 |
|
Quick Ratio |
1.43 |
|
|
|
|
Cash Conversion Cycle |
14.87 |
|
|
|
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 1.65 times in 2016, decrease from 5.94 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 1.43 times in 2016,
decrease from 5.83 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 Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.33 |
Impressive |
Industrial Average |
0.34 |
|
Debt to Equity Ratio |
0.49 |
Impressive |
Industrial Average |
0.50 |
|
Times Interest Earned |
131.06 |
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 lower the percentage means that the company is
using less leverage and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 131.06 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 0.33 less than 0.5, most of the company's
assets are financed through equity.
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 |
2.81 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.27 |
Satisfactory |
Industrial Average |
1.34 |
|
Inventory Conversion Period |
- |
|
|
|
|
Inventory Turnover |
- |
|
Industrial Average |
6.19 |
|
Receivables Conversion Period |
78.25 |
|
|
|
|
Receivables Turnover |
4.66 |
Satisfactory |
Industrial Average |
5.33 |
|
Payables Conversion Period |
63.38 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.66 and
The company's Total Asset Turnover is calculated as 1.27 times and 2.34
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 65.02 |
|
|
1 |
INR 90.12 |
|
Euro |
1 |
INR 80.09 |
|
Thai Baht |
1 |
INR 2.08 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.