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MIRA
INFORM REPORT
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Report No. : |
509385 |
|
Report Date : |
18.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
KNK INTECH CO., LTD. |
|
|
|
|
Registered Office : |
111/47
Soi Lasal 32,
Bangna Tai, Bangna, Bangkok 10260 |
|
|
|
|
Country : |
Thailand |
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|
Financials (as on) : |
31.12.2017 |
|
|
|
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Date of Incorporation : |
29.08.2014 |
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|
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Com. Reg. No.: |
0105557126251 |
|
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|
Legal Form : |
Private Limited Company |
|
|
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Line of Business : |
Subject is engaged in importing
and distributing various
kinds of lubricants, grinding
wheel and other
industrial tools for
variety of industries. |
|
|
|
|
No. of Employees : |
15 |
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 (30.09.2017) |
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
KNK INTECH CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 111/47 SOI
LASAL 32, BANGNA
TAI, BANGNA,
BANGKOK 10260,
THAILAND
TELEPHONE : [66] 2749-3122
FAX : [66] 2749-3828
E-MAIL
ADDRESS : nattana@knkintech.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2014
REGISTRATION
NO. : 0105557126251
TAX
ID NO. : 3036618027
CAPITAL REGISTERED : BHT. 1,000,000
CAPITAL PAID-UP : BHT.
1,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
JAPANESE :
49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
NATTANA KREGNAVAKUL, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 15
LINES
OF BUSINESS : LUBRICANTS AND
INDUSTRIAL TOOLS
IMPORTER AND
DISTRIBUTOR
|
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 August 29,
2014 as a
private limited company
under the registered
name KNK INTECH
CO., LTD., by Thai
and Japanese groups,
with the business
objective to import
and distribute lubricants
and industrial tools.
It currently employs
15 staff.
The
subject’s registered address is
111/47 Soi Lasal
32, Bangna Tai,
Bangna,
Bangkok
10260, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Nattana Kregnavakul |
[x] |
Thai |
49 |
|
Mr. Yusaku Suzuki |
|
Japanese |
53 |
|
Mr. George Tan Joo Teh |
|
Malaysian |
53 |
AUTHORIZED PERSON
Only the mentioned
director [x] signs
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Nattana Kregnavakul is
the Managing Director.
He is Thai
nationality with the
age of 49
years old.
Mr. Yusaku Suzuki is
the Deputy Managing
Director.
He is Japanese
nationality with the
age of 53
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing
various kinds of
lubricants, grinding wheel
and other industrial
tools for variety
of industries.
PURCHASE
The products are
purchased from supplier
both domestic and
overseas in Japan,
Israel and Republic
of China.
MAJOR SUPPLIERS
Daishin
Kako Co., Ltd. : Japan
Toolgal
Industrial Diamonds Ltd. : Israel
SALES
100% of the
products is sold
locally by wholesale
to traders, 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 IRICO’S
DATABASE 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
L/C at sight
or T/T.
BANKING
Bangkok
Bank Public Company
Limited
EMPLOYMENT
The
subject currently employs
15 staff.
LOCATION DETAILS
The
premise is owned for
administrative office at
the heading address.
Premise is located
in commercial/residential area.
COMMENT
The
subject’s operating performance
in 2017 was
slowdown from a decrease in
sales or service
income and a net
loss comparing to
the previous year.
The subject has
to expand its
customer base more
aggressively in order
to increase sales
figures and become
profitable otherwise it
would encounter a
slow growth and
more net loss
in the future.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 1,000,000
divided into 10,000
shares of Bht.
100
each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 10, 2018]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Nattana Kregnavakul Nationality: Thai Address : 111/177
Soi Lasal 32,
Bangna Tai, Bangna, Bangkok
|
5,000 |
50.00 |
|
Daishin Kako Co.,
Ltd. Nationality: Japanese Address : Mikita
Building, Chibadaimon, Minato-ku, Tokyo 105-0012,
Japan |
4,900 |
49.00 |
|
Mrs. Chidapa Kregnavakul Nationality: Thai Address : 111/177
Soi Lasal 32,
Bangna Tai, Bangna, Bangkok
|
100 |
1.00 |
Total Shareholders : 3
Share Structure [as
at April 10,
2018]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
5,100 |
51.00 |
|
Foreign-Japanese |
1 |
4,900 |
49.00 |
|
Total |
3 |
10,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Win Lertpraiwan
No. 10551
KNK INTECH
CO., LTD.
BALANCE SHEET
[BAHT]
The
latest financial figures
published for December
31, 2017, 2016
and 2015 were:
ASSETS
|
Current Assets |
2017 |
2016 |
2015 |
|
|
|
|
|
|
Cash and Cash Equivalents |
956,014.45 |
882,867.76 |
1,123,884.46 |
|
Trade Accounts and
Other Receivable |
1,118,309.18 |
1,749,524.84 |
941,887.30 |
|
Inventories |
1,226,901.00 |
1,160,362.00 |
1,851,027.00 |
|
Other Current Assets |
- |
- |
173,430.83 |
|
Total Current Assets
|
3,301,224.63 |
3,792,754.60 |
4,090,229.59 |
|
|
|
|
|
|
Property, Plant and
Equipment |
450,228.55 |
643,519.83 |
799,147.78 |
|
Other Non-current Assets |
48,500.00 |
48,500.00 |
48,500.00 |
|
Total Assets |
3,799,953.18 |
4,484,774.43 |
4,937,877.37 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2017 |
2016 |
2015 |
|
|
|
|
|
|
Trade Accounts and Other
Payable |
793,415.27 |
1,284,266.44 |
2,815,275.87 |
|
Current Portion of Long-term Liabilities |
61,760.00 |
185,280.00 |
174,600.00 |
|
Short-term Loans |
2,560,000.00 |
2,560,000.00 |
- |
|
Accrued Expenses |
- |
- |
57,976.18 |
|
Total Current Liabilities |
3,415,175.27 |
4,029,546.44 |
3,047,852.05 |
|
Long-term Loans Related Person |
- |
- |
1,300,000.00 |
|
Other Non-current Liabilities |
- |
61,760.00 |
257,720.00 |
|
Total Liabilities |
3,415,175.27 |
4,091,306.44 |
4,605,572.05 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, and
issued share capital
10,000 shares
|
1,000,000.00 |
1,000,000.00 |
1,000,000.00 |
|
Capital Paid |
1,000,000.00 |
1,000,000.00 |
1,000,000.00 |
|
Retained Earning -Unappropriated [Deficit] |
[615,222.09] |
[606,532.01] |
[667,694.68] |
|
Total Shareholders’ Equity |
384,777.91 |
393,467.99 |
332,305.32 |
|
Total Liabilities and
Shareholders’ Equity |
3,799,953.18 |
4,484,774.43 |
4,937,877.37 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2017 |
2016 |
2015 |
|
|
|
|
|
|
Sales or Services Income |
7,223,859.00 |
8,243,127.00 |
6,132,282.90 |
|
Other Income |
141,854.97 |
25,071.74 |
2,893.19 |
|
Total Revenues |
7,365,713.97 |
8,268,198.74 |
6,135,176.09 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold or Services |
4,280,738.83 |
5,073,259.79 |
3,353,726.00 |
|
Selling Expenses |
74,598.20 |
- |
- |
|
Administrative Expenses |
3,019,067.02 |
3,133,776.28 |
2,752,492.10 |
|
Total Expenses |
7,374,404.05 |
8,207,036.07 |
6,106,218.10 |
|
|
|
|
|
|
Profit /[Loss] before Income
Tax |
[8,690.08] |
61,162.67 |
28,957.99 |
|
Income Tax |
- |
- |
- |
|
Net Profit / [Loss] |
[8,690.08] |
61,162.67 |
28,957.99 |
KNK INTECH
CO., LTD.
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2017 |
2016 |
2015 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.97 |
0.94 |
1.34 |
|
QUICK RATIO |
TIMES |
0.61 |
0.65 |
0.68 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
16.04 |
12.81 |
7.67 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.90 |
1.84 |
1.24 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
104.61 |
83.48 |
201.45 |
|
INVENTORY TURNOVER |
TIMES |
3.49 |
4.37 |
1.81 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
56.50 |
77.47 |
56.06 |
|
RECEIVABLES TURNOVER |
TIMES |
6.46 |
4.71 |
6.51 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
67.65 |
92.40 |
306.40 |
|
CASH CONVERSION CYCLE |
DAYS |
93.47 |
68.55 |
(48.88) |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
59.26 |
61.55 |
54.69 |
|
SELLING & ADMINISTRATION |
% |
42.83 |
38.02 |
44.89 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
42.71 |
38.76 |
45.36 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(0.12) |
0.74 |
0.47 |
|
NET PROFIT MARGIN |
% |
(0.12) |
0.74 |
0.47 |
|
RETURN ON EQUITY |
% |
(2.26) |
15.54 |
8.71 |
|
RETURN ON ASSET |
% |
(0.23) |
1.36 |
0.59 |
|
EARNING PER SHARE |
BAHT |
(0.87) |
6.12 |
2.90 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.90 |
0.91 |
0.93 |
|
DEBT TO EQUITY RATIO |
TIMES |
8.88 |
10.40 |
13.86 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(12.37) |
34.42 |
|
|
OPERATING PROFIT |
% |
(114.21) |
111.21 |
|
|
NET PROFIT |
% |
(114.21) |
111.21 |
|
|
FIXED ASSETS |
% |
(30.04) |
(19.47) |
|
|
TOTAL ASSETS |
% |
(15.27) |
(9.18) |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -12.37%. Turnover has decreased from THB
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
42.71 |
Impressive |
Industrial
Average |
2.23 |
|
Net Profit Margin |
(0.12) |
Deteriorated |
Industrial
Average |
3.34 |
|
Return on Assets |
(0.23) |
Deteriorated |
Industrial
Average |
5.87 |
|
Return on Equity |
(2.26) |
Deteriorated |
Industrial
Average |
11.48 |
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 42.71%. 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 -0.12%.
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 -0.23%.
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 -2.26%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Downtrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.97 |
Risky |
Industrial
Average |
1.72 |
|
Quick Ratio |
0.61 |
|
|
|
|
Cash Conversion Cycle |
93.47 |
|
|
|
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 0.97 times in 2017, increase from 0.94 times, then the company may
have problems meeting its short-term obligations. 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 0.61 times in 2017,
decrease from 0.65 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 94 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.90 |
Acceptable |
Industrial
Average |
0.54 |
|
Debt to Equity Ratio |
8.88 |
Risky |
Industrial
Average |
1.19 |
|
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 0.9 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 :
IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
16.04 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.90 |
Impressive |
Industrial
Average |
1.76 |
|
Inventory Conversion Period |
104.61 |
|
|
|
|
Inventory Turnover |
3.49 |
Deteriorated |
Industrial
Average |
17.89 |
|
Receivables Conversion Period |
56.50 |
|
|
|
|
Receivables Turnover |
6.46 |
Impressive |
Industrial Average |
5.71 |
|
Payables Conversion Period |
67.65 |
|
|
|
The company's Account Receivable Ratio is calculated as 6.46 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 83 days at the end of 2016 to
105 days at the end of 2017. This represents a negative trend. And Inventory
turnover has decreased from 4.37 times in year 2016 to 3.49 times in year 2017.
The company's Total Asset Turnover is calculated as 1.9 times and 1.84
times in 2017 and 2016 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 67.71 |
|
|
1 |
INR 91.89 |
|
Euro |
1 |
INR 79.89 |
|
THB |
1 |
INR 2.11 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VAR |
|
|
|
|
Report Prepared by
: |
DNS |
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.