MIRA INFORM REPORT

 

 

Report No. :

511085

Report Date :

28.05.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

EKC INDUSTRIES (THAILAND) CO., LTD.

 

 

Registered Office :

269  Vibhavadi  Rangsit  Road,  Sanambin, Donmuang, Bangkok 10210

 

 

Country :

Thailand

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

07.10.2010

 

 

Com. Reg. No.:

0105553124190

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer,  Distributor  and Service Provider of CNG  and  High  Pressure  Gas  Cylinders

 

 

No. of Employees :

Not Available

 

 

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 :

Undetermined

 

 

Payment Behaviour :

--

 

 

Litigation :

--

 

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

 

EKC INDUSTRIES (THAILAND) CO., LTD.

 

 

SUMMARY

 

REGISTRATION  ADDRESS                  :           269  VIBHAVADI  RANGSIT  ROAD,  SANAMBIN,

                                                                        DONMUANG, BANGKOK 10210,THAILAND

TELEPHONE  NO.                                :           -

ESTABLISHED                                    :           2010

REGISTRATION  NO.                           :           0105553124190

TAX  ID  NO.                                         :           3034137728

CAPITAL REGISTERED                        :           BHT.   100,000,000

CAPITAL PAID-UP                                :           BHT.   100,000,000

SHAREHOLDER’S  PROPORTION        :           FOREIGN  :  100.00%

FISCAL YEAR CLOSING DATE             :           MARCH   31       

LEGAL  STATUS                                  :           PRIVATE LIMITED COMPANY

MANAGEMENT                         :           MR. PREM KUMAR KHURANA, INDIAN

                                                                        MANAGING DIRECTOR

LINES  OF  BUSINESS                         :           CNG  AND  HIGH  PRESSURE  GAS  CYLINDERS

                                                                        IMPORTER,   DISTRIBUTOR   AND SERVICE

                                                                        PROVIDER

                                                                         

 

CORPORATE  PROFILE

 

PRESENT  SITUATION                         :           UNTRACEABLE

 

 

HISTORY

 

The  subject  was  formed  on  October  7,  2010   as  a  private  limited  company  under  the  registered  name  EKC  INDUSTRIES  (THAILAND)  CO., LTD.,  by  foreign  groups,  with  the  business  objective  to  import  and  distribute  CNG  cylinders  and  high  pressure  gas  cylinders,  as  well  as  to  provide  design  and  installation  service.   The  subject  is  a  subsidiary  of  Everest  Kanto  Cylinder  Ltd.,  in  India.

 

The  subject’s  registered  address  was  initially  located  at  28/12  Moo  9,  Vibhavadi  Rangsit,  Seekan,  Donmuang,  Bangkok  10210.

 

On  November  14,  2010,  its  registered  address  has  been  changed  to  269  Vibhavadi  Rangsit  Road,  Sanambin,  Donmuang,  Bangkok  10210  by  the  Donmuang  District  Office.  Actually  both  are  the  same  location.

 

THE  BOARD  OF  DIRECTOR

 

     Name

 

Nationality

Age

 

 

 

 

Mr. Prem  Kumar  Khurana

 

Indian

78

Mr. Pushkar  Kumar  Khurana

 

Indian

46

Mr. Puneet  Khurana

 

British

45

 

 

AUTHORIZED  PERSON

 

One  of  the  above  directors  can  sign  on  behalf  of  the  subject  with  company’s  affixed.

 

 

MANAGEMENT

 

Mr. Prem  Kumar  Khurana  is  the  Managing  Director.

He  is  Indian  nationality  with  the  age  of  78  years  old.

 

Note:

 

Please  be  informed  that  the  subject  has  made  cancellation of  the  office  lease  agreement  for  the  above  address  since  2017.  Moreover,  we  are  unable  to  contact  or  investigate  the  subject  as  the  Telephone Company  reported  no  contact  telephone  number  under  the  subject’s  name  in their  telephone  directory.

 

Furthermore,  the  subject  has  no  sales  or  service  income  available  for the  financial  year  ended  as  of  March  31,  2017,  so  we  are  in doubt  whether  the  subject  has  stopped  or  continued  with  the  operation.   Due  to  the  subject  is  untraceable,  any  credit  amount  is not  recommended.

 

 

FINANCIAL  INFORMATION

 

The  capital  was  registered  at  Bht. 100,000,000   divided  into  100,000   shares  of 

Bht.  1,000  each  with  fully  paid.

 

 

THE  SHAREHOLDERS  LISTED  WERE  :  [as  at  July  31,  2017]

 

       NAME

HOLDING

%

 

 

 

Everest  Kanto  Cylinder  Ltd.

Nationality:  Indian

Address     :  Raheja Centre, Free Press
Journal Marg,

                    214  Nariman Point, Mumbai  400 021,  India 

99,997

99.997

Mr. Prem  Kumar  Khurana

Nationality:  Indian

Address     :  203 B  Maker  Tower  Cuffe  Parade,

                    Mumbai  400  005,  India 

         1

0.001

Mr. Pushkar  Kumar  Khurana

Nationality:  Indian

Address     :  202/203  B  Maker  Tower,  Colaba, 

                    Mumbai  400  005,  India

         1

0.001

Mr. Puneet  Khurana

Nationality:  British

Address     :  202B  Maker  Tower,  Colaba, 

                    Mumbai  400  005,  India

         1

0.001

 

Total  Shareholders  :    4

 

Share  Structure  [as  at  July  31,  2017]

 

Nationality

Shareholders

No. of  Share

% Shares

 

 

 

 

Thai

-

-

-

Foreign

4

100,000

100.00

 

Total

 

4

 

100,000

 

100.00

 

 

NAME  OF  AUDITOR  &  CERTIFIED  PUBLIC  ACCOUNTANT  NO. :

 

Mr. Yuthana  Worawettanakul  No.   4683

 

 

BALANCE SHEET [BAHT]

 

The  latest  financial  figures  published  for  March  31,  2017,  2016  and  2015  were:

          

 

ASSETS

                                                                                                

Current Assets

2017

2016

2015

 

 

 

 

Cash   and Cash Equivalents     

1,287,166.92

2,884,951.13

24,433,459.08

Trade  Accounts  and  Other  Receivable 

18,354,452.19

19,967,177.57

12,093,965.75

Short-term Loan  to Related  Company 

   and  Deferred  Interest

 

-

 

-

 

11,614,461.18

Inventories

-

-

10,391,213.19

Advance Payment for Goods -

   Related Companies

 

-

 

-

 

41,381,819.25

Revenue Department  Receivable

-

-

1,504,227.35

Other Current Assets

68,814,600.79

70,309,516.54

-

 

Total  Current  Assets                

 

88,456,219.90

 

93,161,645.24

 

101,419,145.80

 

 

 

 

Long-term Loans

13,977,908.23

13,435,307.94

-

Deposits

-

-

40,000.00

 

Total  Assets                 

 

102,434,128.13

 

106,596,953.18

 

101,459,145.80

 

 

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

 

Current Liabilities

2017

2016

2015

 

 

 

 

Trade Accounts  and Other Payable

2,400,691.46

2,606,030.48

1,675,294.26

Accrued Income Tax

-

797,740.51

-

 

Total Current Liabilities

 

2,400,691.46

 

3,403,770.99

 

1,675,294.26

 

 

 

 

Other Non-current  Liabilities

334,418.50

334,418.50

334,418.50

 

Total  Liabilities            

 

2,735,109.96

 

3,738,189.49

 

2,009,712.76

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

 

 

Share  capital : Baht  1,000  par  value 

  authorized,  and  issued  share  capital 

     100,000  shares   

 

 

100,000,000.00

 

 

100,000,000.00

 

 

100,000,000.00

 

Capital  Paid                     

 

100,000,000.00

 

100,000,000.00

 

100,000,000.00

Retained Earning -Unappropriated

    [Deficit]

 

[300,981.83]

 

2,858,763.69

 

[550,566.96]

 

Total  Shareholders’ Equity

 

99,699,018.17

 

102,858,763.69

 

99,449,433.04

 

Total  Liabilities  and  Shareholders’ 

  Equity

 

 

102,434,128.13

 

 

106,596,953.18

 

 

101,459,145.80

 

                                                  

PROFIT  &  LOSS  ACCOUNT

 

Revenue

2017

2016

2015

 

 

 

 

Sales  or Services Income           

-

12,240,565.03

15,110,972.05

Interest Income

857,869.05

869,744.72

597,354.87

Other  Income                

-

6,651,010.66

344,206.29

 

Total  Revenues           

 

857,869.05

 

19,761,320.41

 

16,052,533.21

 

Expenses

 

 

 

 

 

 

 

Change  in Finished  Goods and

   Work in Progress

 

-

 

10,391,213.19

 

1,554,808.93

Purchase Goods

-

-

13,766,065.11

Import Costs

-

-

106,822.67

Services

-

-

240,000.00

Professional  Fees

-

-

1,962,226.75

Other Expenses

4,017,614.57

5,163,036.06

231,883.84

 

Total Expenses             

 

4,017,614.57

 

15,554,249.25

 

17,861,807.30

 

 

 

 

Profit  /[Loss]  before  Financial Cost  and

   Income Tax

 

[3,159,745.52]

 

4,207,071.16

 

[1,809,274.09]

Financial Cost

-

-

-

 

 

 

 

Profit /[Loss]  before  Income  Tax

[3,159,745.52]

4,207,071.16

[1,809,274.09]

Income  Tax  

-

[797,740.51]

-

 

Net  Profit / [Loss]

 

[3,159,745.52]

 

3,409,330.65

 

[1,809,274.09]

 

 

 

FINANCIAL  ANALYSIS

 

ITEM

UNIT

2017

2016

2015

 

 

 

 

 

LIQUIDITY RATIO

 

 

 

 

CURRENT RATIO

TIMES

36.85

27.37

60.54

QUICK RATIO

TIMES

8.18

6.71

28.74

 

 

 

 

 

ACTIVITY RATIO

 

 

 

 

FIXED ASSETS TURNOVER

TIMES

-

-

-

TOTAL ASSETS TURNOVER

TIMES

-

0.11

0.15

INVENTORY CONVERSION PERIOD

DAYS

-

-

247.56

INVENTORY TURNOVER

TIMES

-

-

1.47

RECEIVABLES CONVERSION PERIOD

DAYS

-

595.40

292.13

RECEIVABLES TURNOVER

TIMES

-

0.61

1.25

PAYABLES CONVERSION PERIOD

DAYS

-

91.54

39.91

CASH CONVERSION CYCLE

DAYS

-

503.86

499.77

 

 

 

 

 

PROFITABILITY RATIO

 

 

 

 

COST OF GOODS SOLD

%

-

84.89

101.39

SELLING & ADMINISTRATION

%

-

-

15.28

INTEREST

%

-

-

-

GROSS PROFIT MARGIN

%

-

76.55

4.84

NET PROFIT MARGIN BEFORE EX. ITEM

%

-

34.37

(11.97)

NET PROFIT MARGIN

%

-

27.85

(11.97)

RETURN ON EQUITY

%

(3.17)

3.31

(1.82)

RETURN ON ASSET

%

(3.08)

3.20

(1.78)

EARNING PER SHARE

BAHT

(31.60)

34.09

(18.09)

 

 

 

 

 

LEVERAGE RATIO

 

 

 

 

DEBT RATIO

TIMES

0.03

0.04

0.02

DEBT TO EQUITY RATIO

TIMES

0.03

0.04

0.02

TIME INTEREST EARNED

TIMES

-

-

-

 

 

 

 

 

ANNUAL GROWTH

 

 

 

 

SALES GROWTH

%

(100.00)

(19.00)

 

OPERATING PROFIT

%

(175.11)

(332.53)

 

NET PROFIT

%

(192.68)

288.44

  

FIXED ASSETS

%

-

-

 

TOTAL ASSETS

%

(3.91)

5.06

 

 

 

ANNUAL GROWTH : RISKY

 

An annual sales growth is -100%. Turnover has decreased from THB 12,240,565.03 in 2016 to THB 0.00 in 2017. While net profit has decreased from THB 3,409,330.65 in 2016 to THB -3,159,745.52 in 2017. And total assets has decreased from THB 106,596,953.18 in 2016 to THB 102,434,128.13 in 2017.              

           

                       

PROFITABILITY : RISKY

 

 

 

PROFITABILITY RATIO

 

Gross Profit Margin

-

 

Industrial Average

2.07

Net Profit Margin

-

 

Industrial Average

0.97

Return on Assets

(3.08)

Deteriorated

Industrial Average

0.90

Return on Equity

(3.17)

Deteriorated

Industrial Average

3.76

 

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 -3.08%.

 

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 -3.17%.

 

Trend of the average competitors in the same industry for last 5 years

Return on Assets                       Downtrend

Return on Equity                       Downtrend

 

 

LIQUIDITY : SATISFACTORY

 

 

 

LIQUIDITY RATIO

 

Current Ratio

36.85

Impressive

Industrial Average

3.03

Quick Ratio

8.18

 

 

 

Cash Conversion Cycle

-

 

 

 

 

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 36.85 times in 2017, increase from 27.37 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 8.18 times in 2017, increase from 6.71 times, although excluding inventory so the company still have good short-term financial strength.

 

Trend of the average competitors in the same industry for last 5 years

Current Ratio                 Uptrend

 

 

LEVERAGE : EXCELLENT

 

 

LEVERAGE  RATIO

 

Debt Ratio

0.03

Impressive

Industrial Average

0.28

Debt to Equity Ratio

0.03

Impressive

Industrial Average

0.40

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 lower the percentage means that the company is using less leverage and has a stronger equity position.

 

Debt Ratio shows the proportion of a company's assets which are financed through debt. The company's figure is 0.03 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 : RISKY

 

 

ACTIVITY RATIO

 

Fixed Assets Turnover

-

 

Industrial Average

-

Total Assets Turnover

-

 

Industrial Average

0.93

Inventory Conversion Period

-

 

 

 

Inventory Turnover

-

 

Industrial Average

2.25

Receivables Conversion Period

-

 

 

 

Receivables Turnover

-

 

Industrial Average

2.82

Payables Conversion Period

-

 

 

 

 

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 68.26

UK Pound

1

INR 91.22

Euro

1

INR 79.88

Thai Baht

1

INR 2.11

 

Note : Above are approximate rates obtained from sources believed to be correct

 

 

INFORMATION DETAILS

 

Analysis Done by :

PRI

 

 

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)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.