MIRA
INFORM REPORT
|
Report Date : |
18.01.2007 |
IDENTIFICATION
DETAILS
|
Name : |
THAI
RAYON PUBLIC CO.,
LTD. |
|
|
|
|
Registered Office : |
16th Floor, Mahatun Plaza
Building, 888/160-1 Ploenchit
Road, Pratumwan, Bangkok
10330 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
30.09.2006 |
|
|
|
|
Date of Incorporation : |
1974 |
|
|
|
|
Com. Reg. No.: |
0107536001125 |
|
|
|
|
Legal Form : |
Public Limited
Company |
|
|
|
|
Line of Business : |
Manufacturer of
Viscose Rayon Staple
Fiber and Anhydrous
Sodium Sulphate as
by-product. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
Status : |
Satisfactory
|
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
name
THAI
RAYON PUBLIC CO.,
LTD.
SUMMARY
BUSINESS ADDRESS : 16TH FLOOR,
MAHATUN PLAZA BUILDING,
888/160-1
PLOENCHIT ROAD, PRATUMWAN,
BANGKOK
10330, THAILAND
TELEPHONE : [66] 253-6745-54
FAX :
[66] 254-3181,
253-5472
E-MAIL ADDRESS : pmbajaj@thairayon.com
REGISTRATION ADDRESS : SAME AS
THE BUSINESS ADDRESS
ESTABLISHED :
1974
REGISTRATION NO. : 0107536001125 [Former : BOR.MOR.JOR.186]
CAPITAL REGISTERED : BHT. 201,600,000
CAPITAL PAID-UP : BHT. 201,600,000
FISCAL YEAR
CLOSING DATE : SEPTEMBER 30
LEGAL STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. POORANMAL
BAJAJ, INDIAN PRESIDENT
NO. OF
STAFF : 820
LINES OF BUSINESS : MANUFACTURER OF VISCOSE RAYON
STAPLE
FIBRE
AND ANHYDROUS SODIUM
SULPHATE
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
FOR NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject
was established on February 13,
1974 as a
private limited company
by Thai-Indian groups.
It received the
technical know how for
plant and machinery
from Grasim Industries
Limited, India.
Being a
joint venture between
the world renowned
Birla Group of
Industries, India and
leading businessmen in
Thailand, the subject
received promotional privileges
from the Board
of Investment in
1974. The subject
is the only manufacturer of
Viscose Rayon Staple
Fiber [VRSF] in
Thailand, VRSF is
the main raw
material in manufacturing woven textile products.
On September
21, 1984, the
subject was listed
on the Stock Exchange of
Thailand and finally
converted its status
to become a
public limited company
on October 4,
1993 under the
name style THAI
RAYON PUBLIC CO., LTD.
It currently employs
820 staff.
The subject’s
registered address is
Mahathun Plaza Building,
888/160-1 Ploenchit Rd.,
Lumpini, Pathumwan, Bangkok 10330, and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Pooranmal
Bajaj |
|
Indian |
58 |
|
Mr. Kumar
Mangalam Birla |
|
Indian |
40 |
|
Mrs. Rajashree
Birla |
|
Indian |
62 |
|
Mrs. Neerja
Birla |
|
Indian |
36 |
|
Mr. S.S.
Mahansaria |
|
Indian |
72 |
|
Mr. Vinai
Sachdev |
|
Thai |
77 |
|
Mr. Ramakant
Rathi |
|
Indian |
66 |
|
Mrs. Ratchanee
Kajiji |
|
Thai |
66 |
|
Mr. Amolat
Thakral |
|
Indian |
47 |
|
Mr. Silendra
Kumar Jain |
|
Indian |
64 |
AUTHORIZED PERSON
Two of
the above mentioned
directors can jointly
sign on behalf
of the subject with the
company’s affixed.
MANAGEMENT
Mr.
Pooranmal Bajaj is the President.
He is
Indian nationality with
the age of
58 years old.
Experience
: Commercial Manager of Grasim
Industries Co., Ltd. - India
Mr.
V.K. Kapoor
is the Senior Vice President
[Technical].
He is Indian nationality
with the age
of 57 years old.
Mr. N. K.
Jain is
the Vice President – Production.
He is
Indian nationality.
Mr.
Sanjay Mahajan is
the Vice President – Commercial.
He is
Indian nationality.
Mr.
Sanjay Kumar Verma
is the
Vice President – Marketing.
He is
Indian nationality.
Mr.
Sanjay Kumar Kaul
is the Assistant Vice President
- Engineering.
He is
Indian nationality.
Mr.
Ram Gopal Agrawal
is the Assistant Vice President - Process & Development.
He is
Indian nationality.
Mr. Pramote
Pattanamongkol is the G.M. – Human Resources & Administration.
He is
Thai nationality.
BUSINESS OPERATIONS
The subject’s
activity is a
manufacturer of Viscose
Rayon Staple Fiber
and Anhydrous Sodium
Sulphate as by-product.
MAJOR BRAND
“BIRLA CELLULOSE”
PRODUCTIONS [as
of 2006]
-
Viscose Rayon Staple Fiber :
79,461 metric tons
per year
-
Anhydrous Sodium Sulphate
: 61,166 metric
tons per year
PURCHASE
60% of
raw materials, such
as wood pulp,
sulphur, caustic soda
and charcoal are
imported from United States of America, Canada,
Indonesia, South Africa,
Republic of China,
Singapore, India and
Middle East country
with over 20
worldwide countries. The remaining 40% is purchased from
local suppliers.
MAJOR SUPPLIERS
-
AV Cell Inc., : Canada
-
Grasim Industries Ltd. : India
-
Thai Carbon Black Public Co., Ltd.
: Thailand
EXPORT [COUNTRIES]
55% of
the products is
exported to United States of America, Indonesia,
Korea, Philippines, Mexico,
South Africa, Taiwan
and Singapore.
SALES [LOCAL]
45% of
its products is
sold locally to
manufacturers, wholesalers and
end-users.
MAJOR CUSTOMERS
Thai Polyphosphate and Chemical Co., Ltd. :
Thailand
Indo-Thai Synthetic
Co., Ltd. :
Thailand
Unit : Million Baht
|
Revenue
Structure |
2006 |
2005 |
|
|
Amount |
Amount |
|
Viscose Rayon Staple Fiber |
|
|
|
Domestic
Sales |
2,571 |
2,352 |
|
Export Sales |
2,515 |
2,668 |
|
Sodium Sulphate Sales |
230 |
241 |
|
Other Income |
234 |
268 |
|
Equity in Net Income |
407 |
718 |
|
Total
Revenues |
5,957 |
6,247 |
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
|
Company |
Type of Business |
% of Investment |
|
Thai
Polyphosphate and Chemical
Co.,
Ltd. |
Manufacture of
Sodium-tri- polyphosphate |
49.00 |
|
Thai Acrylic
Fiber Co., Ltd. |
Manufacture of
Acrylic Fiber |
30.00 |
|
Thai Carbon
Black Public Co.,
Ltd. |
Manufacture of
Carbon Black |
24.98 |
|
Alexandria Fiber
Co. S.A.E. |
Manufacture of
acrylic fiber |
27.50 |
|
P.T. Indo - Liberty Textiles Co., Ltd. |
Manufacture of
Spun Yarn |
40.00 |
|
Birla Lao
Pulp & Plantation Ltd. |
Manufacture of
wood pulp |
30.00 |
|
Aditya Birla
Chemicals [Thailand] Ltd. [Former:
Thai Organic Chemicals Co., Ltd.] |
Manufacture of
caustic soda |
30.00 |
CREDIT
Purchasing terms
are by cash or on
the credits of
30-60-90 days.
Imports are
by L/C at sight or
T/T.
Selling terms
are on the credits of
30-60 days.
Exports are
against L/C at
sight.
BANKING
Bangkok
Bank Public Co.,
Ltd.
[Head Office : 333 Silom Rd., Silom,
Bangrak, Bangkok 10500]
The
Siam Commercial Bank
Public Co., Ltd.
[Head Office : 9 Ratchadapisek Rd., Ladyao,
Jatujak, Bangkok 10900]
Citibank
N.A.
[Bangkok
Branch : 127 South Sathorn
Rd., Thungmahamek, Sathorn,
Bangkok 10120]
The
Hongkong & Shanghai
Banking Corp.
[Bangkok
Branch : 64 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
EMPLOYMENT
The subject
employs approximately 820
staff. [office & sales staff and factory workers]
LOCATION DETAILS
The premise
is rented for
administrative office at
the heading address.
Premise is located
in commercial area
The factory
is located at
36 Moo 2 Ayuthya-Angthong Highway,
T. Posa, A.
Muang, Angthong Province
14000, Tel. [66]
35 611-227-30 Fax
[66] 35 611-908.
COMMENT
Thai Rayon
is the only producer of
VRSF in the
country and hence
there is no
domestic competition. The
company follows a
fair price policy
backed with commitment
on delivery and
value added technical
services. China, the
largest producer &
consumer of VRSF
in the World, accounts for
47% of global share. Today,
China has become
dominating player due
to its self-sufficiency and is
emerging as one
of the strong competitor for
VRSF exports. Under
post WTO situation,
the company is
trying to build on
its strengths in
areas of consistent
quality, wide product
range, lowering cost
of production and
strong customer service
to withstand the upcoming competition.
VRSF is
cotton like fibre
and always faces
threat from the
substitute fibres like
cotton & polyester.
The prices of
these substitute products
have direct bearing
on the prices of VRSF.
Thailand being primarily
a cotton consuming
country, therefore, the
price of cotton
will play an
important role on
the profit margins
of the company in the
long term prospect.
FINANCIAL INFORMATION
The capital
was initially registered
at Bht. 3,000,000
with fully paid.
The capital
was increased later
as followings:
Bht. 73,500,000 in
1974
Bht. 98,000,000 in
1975
Bht.
112,000,000 in 1990
Bht.
201,600,000 in 1993
The latest
capital was increased
to Bht. 201,600,000
divided into 20,160,000
shares of Bht.
10 each with
fully paid.
MAIN SHAREHOLDERS : [as at
January 11, 2006]
at Bht. 201,600,000
of capitalization.
|
NAME |
HOLDING |
% |
|
Asseau
Inc. Nationality: British Virgin Island |
3,358,285 |
16.66 |
|
Wholton
Co., Ltd. Nationality: British Virgin Island |
2,216,570 |
10.99 |
|
Hart
Global Limited Nationality: Mauritius |
2,160,000 |
10.71 |
|
Grasim
Industries Limited Nationality: Indian |
1,398,857 |
6.94 |
|
Thai
Industrial Management &
Trading Co., Ltd. Nationality: Thai |
973,850 |
4.83 |
|
Ms. Vanita Thakral Nationality: Indian |
589,204 |
2.92 |
|
Mr. Jaiman Thakral Nationality: Indian |
589,204 |
2.92 |
|
Mrs. Ratchanee Kajiji Nationality: Indian |
485,877 |
2.41 |
|
Mr.
Amorn Panijkaiwalkosin Nationality: Thai |
364,074 |
1.81 |
|
Mr. Kamol
Pichitsingh Nationality: Thai |
349,063 |
1.73 |
|
Others |
7,675,016 |
38.17 |
Total Shareholders
826
[including
the above shareholders]
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Mr.
Supachai Phanyawattano
No. 3930
BALANCE SHEET [BAHT]
The
latest financial figures
published for September
30, 2006 &
2005 were:
ASSETS
|
Current Assets |
2006 |
2005 |
|
|
|
|
|
Cash and
Cash Equivalents |
1,713,583,683 |
1,153,504,008 |
|
Short-term Investments |
1,575,583,636 |
1,586,518,751 |
|
Trade Accounts
Receivable Other
Parties |
335,732,569 |
537,275,017 |
|
Related
Parties |
333,981,961 |
274,657,805 |
|
Advance for
Purchase of Raw
Materials -Related
party |
109,855,453 |
- |
|
Inventories [note 1] |
543,605,292 |
579,002,197 |
|
Other Current
Assets Input
Tax Refundable |
46,273,241 |
32,062,986 |
|
Export
Incentive Receivable |
18,680,333 |
18,244,409 |
|
Others |
48,813,404 |
21,551,662 |
|
|
|
|
|
Total
Current Assets |
4,726,109,542 |
4,202,816,835 |
|
Investments in
Related Parties Accounted
for Under
Equity Method |
4,457,350,960 |
4,053,824,458 |
|
Other Long-term
Investments |
1,075,311,177 |
1,287,237,097 |
|
Long-term
Loans to Related Parties |
150,927,300 |
156,500,100 |
|
Fixed Assets [note 2] |
967,212,989 |
354,615,976 |
|
Other Assets
|
15,894,127 |
5,671,875 |
|
Total
Assets |
11,392,806,095 |
10,060,666,341 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2006 |
2005 |
|
|
|
|
|
Bank Overdraft
|
5,491,805 |
2,515,668 |
|
Trade Accounts
Payable Other
Parties |
92,651,551 |
51,802,337 |
|
Related
Parties |
58,730,941 |
56,663,941 |
|
Other Current
Liabilities Corporate
Income Tax Payable |
162,657,548 |
142,845,855 |
|
Accrued
Expenses |
113,081,589 |
98,579,384 |
|
Others |
32,124,639 |
19,578,542 |
|
|
|
|
|
Total Current Liabilities |
464,738,073 |
371,985,727 |
|
Provision for
Employee Retirement Benefit |
110,049,741 |
103,671,975 |
|
Other
non-Current Liabilities |
7,676,873 |
10,580,823 |
|
Total
Liabilities |
582,464,687 |
486,238,525 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share
capital : Baht 10 par
value authorized, issued and fully
paid
share capital 20,160,000 shares |
201,600,000 |
201,600,000 |
|
|
|
|
|
Capital Paid |
201,600,000 |
201,600,000 |
|
Unrealized Loss
from Changes in
Fair Value of
Investments in Available-for-Sale Securities |
666,010,463 |
347,556,383 |
|
Translation Adjustment |
[225,894,935] |
[223,800,994] |
|
Retained Earning Appropriated Statutory Reserve |
20,160,000 |
20,160,000 |
|
General
Reserve |
2,500,000,000 |
2,500,000,000 |
|
Unappropriated |
7,648,465,880 |
6,728,912,427 |
|
Total Shareholders' Equity |
10,810,341,408 |
9,574,427,816 |
|
Total Liabilities & Shareholders' Equity |
11,392,806,095 |
10,060,666,341 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2006 |
2005 |
|
|
|
|
|
Sales |
5,340,812,048 |
5,325,224,191 |
|
Share of
Profit from Investments Accounted for
under Equity Method |
406,857,577 |
717,688,796 |
|
Other Income Interest
Income |
137,007,954 |
55,272,791 |
|
Export
Incentive |
44,980,771 |
47,391,659 |
|
Gain
on Exchange |
- |
19,769,170 |
|
Dividend
income |
5,896,761 |
63,618,183 |
|
Others |
20,986,603 |
18,318,420 |
|
Total
Revenues |
5,956,541,714 |
6,247,284,210 |
|
Expenses |
|
|
|
|
|
|
|
Cost of
Sales |
4,138,682,212 |
4,090,459,384 |
|
Selling &
Administrative Expenses |
310,358,793 |
316,179,035 |
|
Directors’ Remuneration |
820,000 |
640,000 |
|
Loss
on Exchange |
38,289,186 |
- |
|
Total Expenses
|
4,488,150,191 |
4,407,278,419 |
|
|
|
|
|
Earnings
before Interest Expenses &
Income Tax |
1,468,391,523 |
1,840,005,791 |
|
Interest Expenses |
[2,478,270] |
[253,850] |
|
Income Tax |
[304,439,800] |
[308,198,971] |
|
|
|
|
|
Net Profit / [Loss] |
1,161,473,453 |
1,531,552,970 |
|
Retained
Earning, Beginning of
Year |
6,728,912,427 |
5,419,089,537 |
|
Dividend
Payment |
[241,920,000] |
[221,730,080] |
|
|
|
|
|
Retained
Earning, End of
Year |
7,648,465,880 |
6,728,912,427 |
NOTES TO
FINANCIAL STATEMENTS [as
at September 2006 &
2005] were:
NOTE
1 Inventories
|
|
2006 |
2005 |
|
|
|
|
|
Finished goods |
27,767,017 |
112,337,458 |
|
Work in
process |
50,828,389 |
59,452,876 |
|
Raw materials |
224,591,440 |
265,436,615 |
|
Raw materials
in transit |
51,615,416 |
59,428,003 |
|
Factory supplies,
spare parts and
packaging materials |
188,803,030 |
82,347,245 |
|
Total |
543,605,292 |
579,002,197 |
NOTE
2: Property, Plant
and Equipment
|
|
2006 |
2005 |
|
|
|
|
|
Land |
50,025,325 |
24,824,658 |
|
Buildings and
Improvement |
362,538,679 |
320,647,320 |
|
Machinery and
Factory Equipment |
1,845,426,556 |
1,729,828,995 |
|
Furniture, Fixtures
and Office Equipment |
37,764,369 |
49,384,514 |
|
Computer Hardware |
12,980,844 |
- |
|
Motor Vehicles |
27,783,225 |
26,674,196 |
|
Construction in
Progress |
556,933,509 |
60,796,415 |
|
Total |
2,893,452,507 |
2,212,156,098 |
|
Less:
Depreciation |
[1,926,239,518] |
[1,857,540,122] |
|
Total |
967,212,989 |
354,615,976 |
FINANCIAL ANALYSIS
Annual
Growth & Profitability
|
Annual
Growth |
2006 |
2005 |
|
Sales |
0.29 |
|
|
Operating |
[18.34] |
|
|
Net Profit |
[24.16] |
|
|
Fixed Assets |
172.75 |
|
|
Total Assets |
13.24 |
|
|
Profitability |
|
|
|
Cost of
Goods Sold |
77.49 |
76.81 |
|
Operating Profit
Margin |
28.23 |
34.56 |
|
S&A expenses |
5.81 |
5.94 |
|
Interest |
0.05 |
0.00 |
|
Other Revenues |
11.53 |
17.31 |
|
Net Profit
Margin |
21.75 |
28.76 |
|
Earning Per
Shares |
57.61 |
75.97 |
|
No. of
Shares |
20,160,000 |
20,160,000 |
Net Sales was increased by 0.29%, Operating Profit was decreased by 18.34%, Net Profit was decreased by 24.16%, Fixed Assets was increased by 172.75%, Total Assets was increased by 13.24%.
Compare each cost with sales, Cost of Goods Sold was increased from 76.81% to 77.49%, Operating Profit Margin was decreased from 34.56% to 28.23%, S & A Expenses were decreased from 5.94% to 5.81%, Interest Paid was increased from 0.00% to 0.05%, Other Revenues was decreased from 17.31% to 11.53%, Net Profit Margin was decreased from 28.76% to 21.75%.
Earning Per Shares was decreased from 75.97 baht per share to 57.61 baht per share.
Liquidity
|
Liquidity |
2006 |
2005 |
|
Current Ratio |
10.17 |
11.30 |
|
Quick
- assets ratio |
8.75 |
9.55 |
Current Ratio was decreased from 11.30 to 10.17, show Current Assets can cover Current Liabilities, Liquidity Ratio of the company was good, and Quick-assets Ratio was decreased from 9.55 to 8.75, capacity to pay Short Term Loan was good too, because Current Assets without Inventory can cover Current Liabilities.
Leverage
|
Leverage |
2006 |
2005 |
|
D/E Ratio |
0.05 |
0.05 |
|
Times Interest
Earned |
68.29 |
7,250.92 |
D/E Ratio was stable at 0.05, show the company had fund from Equity more than fund from Loan, investment risked of the company is low and Times Interest Earned was decreased from 7,250.92 to 68.29, capacity to pay interest paid was good.
Efficiency
|
Efficiency |
2006 |
2005 |
|
Fixed Assets
Turnover |
5.52 |
15.02 |
|
Total Assets
Turnover |
0.47 |
0.53 |
|
Return on
Assets |
10.19 |
15.22 |
|
Return on
Equity |
10.74 |
16.00 |
|
Day’s Payable |
6.25 |
3.50 |
|
Day’s Inventories |
36.64 |
39.14 |
|
Days’ Receivables |
22.63 |
36.32 |
Fixed Assets Turnover was decreased from 15.02 times to 5.52 times, Total Assets Turnover was decreased from 0.53 times to 0.47 times, show the company could not use Assets so efficiently, and Return on Assets was decreased from 15.22 to 10.19, Return on Equity was decreased from 16.00 to 10.74, capacity to use Assets to make profit was not good.
Day’s Payable was increased from 4 days to 7 days, while Day’s Inventories was decreased from 40 days to 37 days, and Day’s Receivables was decreased from 37 days to 23 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 |
|