MIRA
INFORM REPORT
|
Report Date : |
7th
November, 2006 |
IDENTIFICATION
DETAILS
|
Name : |
COTCO-SV
EASTERN STEEL PIPE LIMITED |
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Registered Office : |
189 Moo 6, Soi 6, Nikhompattana, Highway No. 36 Road, Makhamku, Bankai, Rayong Province 21180 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
01.09.1994 |
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Com. Reg. No.: |
0105537103078 [Former : 2305/2537] |
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Legal Form : |
Private
Limited Company |
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Line of Business : |
Manufacturer & Exporter of Galvanized Steel Pipe |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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Status : |
Moderate
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
Company Name
COTCO - SV EASTERN STEEL PIPE LTD.
SUMMARY
BUSINESS ADDRESS :242 DAMRONGRAK ROAD, KLONGMAHANAK
POMPRAB, BANGKOK 10100
TELEPHONE : [66] 2628-1140-7
FAX : [66] 2628-1149
E-MAIL ADDRESS
: cotcosv@infonews.co.th, salescsv@cotco.co.th
REGISTRATION ADDRESS :189 MOO 6, SOI
6, NIKHOMPATTANA,
HIGHWAY NO. 36 ROAD, MAKHAMKU,
BANKAI,
RAYONG PROVINCE 21180
ESTABLISHED : 1994
REGISTRATION NO.
: 0105537103078 [Former : 2305/2537]
CAPITAL REGISTERED : BHT. 154,500,000
CAPITAL PAID-UP
: BHT. 154,500,000
FISCAL YEAR CLOSING
DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. CHAMNAN PIENAPITHAM, THAI MANAGING DIRECTOR
NO. OF
STAFF : 400
LINES OF
BUSINESS : GALVANIZED STEEL
PIPE
MANUFACTURER & 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
September 1, 1994
as a private limited company
under the name style COTCO-SV
EASTERN STEEL PIPE
LTD. by a joint venture between COTCO
Group and SV
Steel Process Holding
Co., Ltd. of
Thailand. The subject received
the promotional privilege
from the Board
of Investment [BOI]
to manufacture of
ERW steel pipes
and SAW large
pipe diameters. It
currently employs approximately 400 staff.
It was
achieved the ISO 9002
certification for black
pipe, galvanized pipe
and spiral pipe
production from SGS
Yarsley International, on
March 5, 2001,
and the plant
has acquired ISO
9001 : 2000 certification in
2002.
The subject’s
registered address is
189 Moo 6, Soi
6, Highway No. 36
Rd., Makhamku, Nikhomphattana, Rayong 21180, while
the administrative office
is at 242 Damrongrak Rd.,
Klongmahanak, Promprab, Bangkok
10100.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
Mr. Chamnan
Pienapitham |
[x] |
Thai |
75 |
|
Mr. Vorpoj
Pienapitham |
[x] |
Thai |
45 |
|
Mr. Naruenart
Attasamphant |
|
Thai |
47 |
|
Mrs.
Kanthiya Tantipidok |
|
Thai |
- |
|
Mr. Prasert
Teeranakanart |
|
Thai |
- |
AUTHORIZED PERSON
Only Mr.
Chamnan Pienapitham can
sign or Mr.
Prasert Teeranakanart can
jointly sign with
one of the directors [x] on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr.
Chamnan Pienapitham
is the Managing Director.
He is
Thai nationality with
the age of
75 years old.
Mr.
Naruenart Attasamphant
is the Marketing & Planning
Director.
He is
Thai nationality with
the age of
47 years old.
Mr.
Panya Pruekpitakkul
is the Factory Director.
He is
Thai nationality.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing various kinds
of steel pipe,
such as ERW
carbon steel pipe
[black steel pipe],
round pipe with
O.D. ˝ to 8’ square
pipe, rectangular pipe;
ERW galvanized steel
pipe with O.D. ˝
to 8 inches; c-lip channel;
submerged arc welding
pipe with O.D.
300 mm to 3,000 mm.
and etc.
The
products are ferrous, steel, iron, brass and bronze, copper, pipes and tubes,
sheets, metals trading, plates and stainless steel.
The following
table details the
statistical codes applicable
to the different diameters
and wall thicknesses
of pipe.
Statistical Description
|
Code |
|
|
30 |
Not Exceeding
21mm external diameter |
|
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Exceeding 21mm
but not exceeding
60.3mm external diameter |
|
31 |
Wall thickness
not exceeding 2.5mm |
|
32 |
Wall thickness
exceeding 2.5mm but not
exceeding 3.6mm |
|
33 |
Wall thickness exceeding 3.6mm |
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Exceeding 60.3mm
but not exceeding
114.3mm external diameter |
|
34 |
Wall thickness
not exceeding 3.2mm |
|
35 |
Wall thickness
exceeding 3.2mm but
not exceeding 4.5mm |
|
36 |
Wall thickness
exceeding 4.5mm |
|
37 |
Exceeding 114.3mm
but not exceeding
165.1mm external diameter |
The goods
are produced according
to British Standard
BS 1387, which
is equivalent to Australian Standard
AS 1074.
The goods
as manufactured from hot rolled coil
[HRC], being rolls
of flat steel.
The HRC is
first slit into a
number of desired
widths and recoiled.
Then, in one
process, the flat
steel is uncoiled,
formed into a
cylinder, welded along
the seam, sized
to the required standard
and cut into
lengths of “black” pipe.
Black pipe
is galvanized by
placing it in
an acid bath
and then coating
it internally and
externally by immersing
it in a zinc bath.
The length of
time spent in
the zinc determines
the thickness of
the costing and
the protection given
to the pipe. On
being withdrawn from
the zinc bath,
the pipe may
be air blown to remove excess zinc and produce
a clean finish.
Each nominal size of pipe can
be produced in
one of four grades:
extra-light; light; medium; and
heavy. The grade
determines the wall thickness;
with extra-light being
the thinnest and
heavy being the thickest.
MAJOR BRAND
“COTCO-SV”
PRODUCTION
120,000 mt.
per annum
PURCHASE
60% of
raw materials such
as steel, stainless
steel, galvanized steel,
brass, bronze, copper
and etc. are
purchased from local
suppliers, and the remaining 40% is imported
from Australia, Korea,
Taiwan, India, Africa,
European Countries & United States of America.
SALES [LOCAL]
60% of
its products is
sold locally to
wholesalers.
EXPORT [COUNTRY]
40% of
its products is
exported to Australia, Hong
Kong, New Zealand,
Korea, U.A.E, Middle
East, Taiwan, Singapore
and Republic of
China.
MAJOR CUSTOMERS
Palmer Steel
Trading [Australia] Pte., Ltd. :
Australia
PARENT COMPANY
Cotco
Metalworks Co., Ltd.
Business Type:
Distributor of metal
products
Address :
59/7 Moo 5, Pracha-utit
Rd., Thungkru, Bangkok
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 for the
past two years.
SUBSIDIARIES &
AFFILIATED COMPANY
Cotco
NCR Papers Co., Ltd.
Business
Type: Manufacturer of Papers.
Cotco
Plastics Co., Ltd.
Business Type:
Manufacturer of plastic
products.
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.
Exports are
against L/C at
sight or T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
[Head
Office : 333
Silom Rd., Silom,
Bangrak, Bangkok 10500]
&
[Nikhomphattana Branch : 199/11 Moo 2, Nikhomphattana, Rayong 21180 ]
Export - Import Bank
[Bangkok
Office : Phaholyothin Rd.,
Samsennai, Phyathai, Bangkok
10400]
Krung
Thai Bank Public
Co., Ltd.
[Head
Office : 35 Sukhumvit
Rd., Klongtoeynua, Wattana,
Bangkok]
EMPLOYMENT
The subject
employs approximately 400
staff. [office staff
and factory workers]
LOCATION DETAILS
The premise
is owned for
operating office at
the heading address
in commercial/ residential area.
Factory and
warehouse is located at
189 Moo 6,
Soi 6, Nikhompattana, Highway
No. 36,
Makhamku, Bangkai, Rayong
Province 21180, Thailand.
Tel: [66]
38 897-181-6 Fax
: [66] 38 897-187.
COMMENT
Overall
economy as a whole has
led to increasing demand of
steel. Domestic consumption of
steels during these few years has extremely increased as many
projects both civil and building construction were on the rise.
This year
economic growth in
prospect countries has strong growth and the subject is looking for a chance to export its products
to these countries more than last year.
FINANCIAL INFORMATION
The capital
was registered at
Bht. 10,000,000 divided
into 100,000 shares
of Bht. 100
each.
The capital
was increased later
as followings :
Bht. 150,000,000
on July 22,
1996
Bht. 200,000,000
on March 24,
1997
On July
1, 2002, capital
was decreased to
Bht. 154,500,000 divided
into 15,450,000 shares of
Bht. 10 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
[as at April 30,
2009]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Cotto
Metalworks Co., Ltd. Nationality:
Thai Address : 59/17
Moo 5, Pracha-utit Rd.,
Thungkru, Bangkok |
10,000,000 |
64.72 |
|
Mr. Chamnan Pienapitham Nationality:
Thai Address : 242
Damrongrak Rd., Klongmahanark, Pomprab, Bangkok
10100 |
3,449,600 |
22.33 |
|
Mr.
Vikrom Likitkajorn Nationality:
Thai Address : 50/257 Moo 5, Sukhapibal 1 Rd., Klongkum, Buengkum,
Bangkok |
2,000,000 |
12.94 |
|
Mr.
Vorapoj Pienapitham Nationality:
Thai Address :
59/7 Moo 5, Pracha-utit Rd., Thungkru, Bangkok |
100 |
|
|
Mr.
Yongyuth Tantipidok Nationality: Thai Address :
1178/124 Phaholyothin 32
Rd., Ladyao, Jatujak, Bangkok |
100 |
=0.01 |
|
Mr.
Naruenart Attasamphant Nationality:
Thai Address : 99/457 Moo 8, Rattanathibeth Rd., Bangkrasor, Muang,
Nonthaburi |
100 |
|
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Mr.
Thanaphant Meeprasertkul Nationality:
Thai Address : 41/1
Pracharatbumphen Rd., Huaykwang, Bangkok |
100 |
|
Total
Shareholders : 7
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mr. Atipong
Sukolkarn No. 3500
BALANCE SHEET [BAHT]
The latest financial figures
published for December
31, 2005 &
2004 were:
ASSETS
|
Current Assets |
2005 |
2004 |
|
|
|
|
|
Cash in
hand & at
Bank |
7,661,381 |
20,621,211 |
|
Trade Accts.
Receivable [note 1] |
61,224,608 |
60,996,190 |
|
Receivable-Related Company |
9,981,236 |
27,118,451 |
|
Inventories [note 2] |
245,251,874 |
254,519,467 |
|
Other Current
Assets |
18,400,236 |
5,153,221 |
|
Total
Current Assets |
342,519,335 |
368,408,540 |
|
Cash at
Bank under Commitment |
1,400,000 |
- |
|
Fixed
Assets [note 3] |
348,548,527 |
420,926,424 |
|
Other
Assets |
2,248,546 |
14,389 |
|
Total
Assets |
694,716,408 |
789,349,353 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current Liabilities |
2005 |
2004 |
|
|
|
|
|
Bank Overdraft
& Short Term
Loan from Financial
Institute |
- |
12,436,760.00 |
|
Trade Accts.
Payable |
100,512,547 |
115,608,858 |
|
Pre-receipt Goods |
1,144,521 |
15,386,222 |
|
Current Portion of Hire-Purchase Contract Payable
|
430,872 |
587,323 |
|
Refundable Long
Term Loan at
Call |
934,843,703 |
941,664,854 |
|
Payable Loan
from Person or Related
Company |
36,599,545 |
10,988,256 |
|
Accrued Interest
from Refundable Long Term Loan
at Call |
323,291,351 |
231,097,051 |
|
Other Current
Liabilities |
14,539,745 |
9,070,135 |
|
Total Current Liabilities |
1,411,362,284 |
1,336,839,459 |
|
Hire-Purchase Payable |
175,557 |
260,568 |
|
Guarantee Per
Hire-Purchase Contract |
1,800,000 |
2,000,000 |
|
Total
Liabilities |
1,413,337,841 |
1,339,100,027 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
Capital Paid |
154,500,000 |
154,500,000 |
|
Assets-Revaluation |
32,552,260 |
52,944,453 |
|
Retained Earning - Unappropriated |
[905,673,693] |
[757,195,127] |
|
Total Shareholders' Equity |
[718,621,433] |
[549,750,674] |
|
Total Liabilities &
Shareholders' Equity |
694,716,408 |
789,349,353 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2005 |
2004 |
|
|
|
|
|
Sales |
660,953,473 |
896,528,388 |
|
Other Income |
4,196,232 |
6,284,186 |
|
Total
Revenues |
665,149,705 |
902,812,574 |
|
Expenses |
|
|
|
|
|
|
|
Cost of
Goods Sold |
687,907,258 |
812,203,326 |
|
Selling &
Administrative Expenses |
39,520,862 |
45,076,573 |
|
Total Expenses
|
727,428,120 |
857,279,899 |
|
Profit
/ [Loss] Before Interest
Expenses & Income
Tax |
[62,278,415] |
45,532,675 |
|
Interest Expenses |
[86,200,151] |
[91,501,044] |
|
Net
Profit / [Loss] |
[148,478,566] |
[45,968,369] |
FINANCIAL NOTE
NOTE
1 Trade Accts. Receivable
|
|
2005 |
2004 |
|
Trade Accts.
Receivable |
|
|
|
Related
Company |
9,981,236 |
27,118,451 |
|
Other
Receivable |
59,747,421 |
47,886,190 |
|
|
69,728,657 |
75,004,641 |
|
Cheque Receipt
in Advance |
|
|
|
Other
Receivable |
1,477,187 |
673,240 |
|
|
1,477,187 |
673,240 |
|
Sold Discount
Receivable |
- |
12,436,760 |
|
|
|
|
|
Total |
71,205,844 |
88,114,641 |
NOTE
2 Inventories
|
|
2005 |
2004 |
|
|
|
|
|
Finished
Goods |
110,658,354 |
117,184,127 |
|
Goods in
Progress |
59,170,227 |
52,832,730 |
|
Raw Material
|
66,404,209 |
74,748,342 |
|
Spare Parts
& Material Supplies |
14,878,058 |
11,925,008 |
|
Goods in
Transit |
- |
3,478,392 |
|
Total |
251,110,848 |
260,168,598 |
|
Less:
Depreciation |
[5,858,974] |
[5,649,132] |
|
|
|
|
|
Total |
245,251,874 |
254,519,467 |
NOTE
3 Fixed Assets
|
|
2005 |
2004 |
|
|
|
|
|
Land |
55,260,000 |
55,260,000 |
|
Building
& Improvement |
174,841,438 |
185,238,314 |
|
Factory Equipment & Machine |
113,947,995 |
174,425,816 |
|
Office Equipment & Furniture |
1,717,483 |
1,303,424 |
|
Vehicle |
2,277,356 |
2,824,320 |
|
Machine
under Installation & Works under
Construction |
504,255 |
1,874,550 |
|
|
|
|
|
Total |
348,548,527 |
420,926,424 |
FINANCIAL ANALYSIS
Annual Growth & Profitability
|
Annual
Growth |
2005 |
2004 |
|
Sales |
[26.28] |
|
|
Operating |
[285.53] |
|
|
Net Profit |
[223.00] |
|
|
Fixed Assets |
[17.19] |
|
|
Total Assets |
[11.99] |
|
|
Profitability |
|
|
|
Cost of
Goods Sold |
104.08 |
90.59 |
|
Operating Profit
Margin |
[9.42] |
5.08 |
|
S&A expenses |
5.98 |
5.03 |
|
Interest |
13.04 |
10.21 |
|
Other Revenues |
0.63 |
0.70 |
|
Net Profit
Margin |
[22.46] |
[5.13] |
Net Sales was
decreased by 26.28%,
Operating Profit was
decreased by 285.53%,
Net Profit was
decreased by 223.00%,
Fixed Assets was
decreased by 17.19%,
Total Assets was
decreased by 11.99%.
Compare each cost
with sales, Cost
of Goods Sold
was increased from
90.59% to 104.08%,
Operating Profit Margin
was decreased from
5.08% to -9.42%,
S & A
Expenses were increased
from 5.03% to
5.98%, Interest Paid
was increased from
10.21% to 13.04%,
Other Revenues was
decreased from 0.70%
to 0.63%, Net
Profit Margin was
decreased from -5.13%
to -22.46%.
Liquidity
|
Liquidity |
2005 |
2004 |
|
Current Ratio |
0.24 |
0.28 |
|
Quick
- assets ratio |
0.06 |
0.08 |
Current Ratio
was decreased from
0.28 to 0.24,
show Current Assets
can not cover
Current Liabilities, Liquidity
Ratio of the
company was not
good, and Quick-assets Ratio was decreased
from 0.08 to
0.06, capacity to
pay Short Term
Loan was not
good too, because
Current Assets without
Inventory can not
cover Current Liabilities.
Leverage
|
Leverage |
2005 |
2004 |
|
D/E Ratio |
[1.97] |
[2.44] |
|
Times Interest
Earned |
[0.72] |
0.50 |
D/E Ratio was
increased from -2.44
to -1.97, show
the company had
fund from Loan
more than fund
from Equity, investment
risked of the
company is medium
and Times Interest
Earned was decreased
from 0.50 to
-0.72, capacity to
pay interest paid
was not good.
Efficiency
|
Efficiency |
2005 |
2004 |
|
Fixed Assets
Turnover |
1.90 |
2.13 |
|
Total Assets
Turnover |
0.95 |
1.14 |
|
Return on
Assets |
[21.37] |
[5.82] |
|
Return on
Equity |
[20.66] |
[8.36] |
|
Day’s Payable |
54.75 |
46.42 |
|
Day’s Inventories |
133.58 |
102.20 |
|
Days’ Receivables |
33.35 |
24.49 |
Fixed Assets Turnover
was decreased from
2.13 times to
1.90 times, Total
Assets Turnover was
decreased from 1.14
times to 0.95
times, show the
company could not
use Assets so efficiently, and Return
on Assets was
decreased from -5.82
to -21.37, Return
on Equity was
decreased from -8.36
to -20.66, capacity
to use Assets to make
profit was not
good.
Day’s Payable
was increased from
47 days to
55 days, Day’s
Inventories was increased
from 103 days
to 134 days, and Day’s
Receivables was increased
from 25 days
to 34 days.
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|