MIRA
INFORM REPORT
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Report Date : |
21.06.2007 |
IDENTIFICATION DETAILS
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Name : |
N.T.S. STEEL GROUP PUBLIC COMPANY LIMITED |
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Registered Office : |
22nd Floor,
Shinawatra 3 Building, |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
1988 |
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Com. Reg. No.: |
0107536001273 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacturer of steel
rebars and wire
rods |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name
N.T.S. STEEL GROUP PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 22nd FLOOR,
SHINAWATRA 3 BUILDING,
1010
JATUJAK,
TELEPHONE : [66] 2949-2949
FAX : [66] 2949-2889
E-MAIL ADDRESS : nts@cementhai.co.th
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1988
REGISTRATION NO. : 0107536001273 [ Former : BOR.MOR.JOR.201]
CAPITAL REGISTERED : BHT.
4,628,010,864
CAPITAL PAID - UP : BHT.
3,253,398,864
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
VISUTH ANUPHANMETHA, THAI
MANAGING DIRECTOR
NO. OF
STAFF : 412
LINES OF
BUSINESS : MANUFACTURER
AND DISTRIBUTOR OF
ROUND AND
DEFORMED BARS AND
WIRE
ROD
CORPORATE PROFILE
OPERATING TREND
: STABLE
PRESENT SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
FOR
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The
subject was established
on October 4,
1988 as a
private limited company.
On
July 13, 1990
the subject was
granted promotion privilege
from the Board
of Investment for 7
years after starting
production of steel
products.
The
subject was listed
on the Stock
Exchange of Thailand
on December 4,
1992 and finally
converted its status
into a public
limited company on
October 22, 1993.
However, it was
revoked the name
from the Stock
Exchange of Thailand
in 2002.
In
October 1993, the
subject was seriously
affected by the
economic crisis within
the nation in
the year 1997
and subsequently underwent
the debt restructuring
under the Corporate
Debt Restructuring Advisory
Committee and the
business reorganization under
the Central Bankruptcy
Court on October
2, 2000. Later,
with respect to
the approval of
the creditors of
NTS and the
order of Central
Bankruptcy Court dated
July 19, 2002,
the steel business
merger between NTS
and the other
2 companies of
Siam Cement group,
namely “The Siam
Iron and Steel
[2001] Ltd.” and
“The Siam Construction
Steel Co., Ltd.”
was initiated, and
set up the
new company under
the name “Millenium Steel
Public Co., Ltd.”,
in order to
invest in the
3 companies. In
December 2006, it was changed
the name to
“Tata Steel [Thailand]
Public Co., Ltd.
It
has achieved the
9001 : 2000 certificate for
the products quality
management in 2004.
After
the subject was
stopped its production
activity temporarily in
2000, it was re-started the
activities again in
January 2003.
The
subject’s registered address
is 1010 Shinawatra
3 Bldg., Vibhavadee
Rangsit Rd., Jatujak,
Bangkok 10900, and
this is the
company’s current operation
address.
THE BOARD OF DIRECTORS
Name
Nationality Age
Mr. Santi
Charnkolravee Thai 58
Mr. Ajchariya Pathumanont Thai 57
Mrs. Srithai
Hemasoraj Thai 55
Mr. Larptawee Senawongse Thai 51
Mr. Visuth
Anuphanmetha Thai 53
AUTHORIZED PERSON
Two
of the above
directors can jointly
sign on behalf
of the subject
with the company’s
affixed.
MANAGEMENT
Mr.
Visuth Anuphanmetha is
the Managing Director.
He
is Thai nationality
with the age
of 53 years
old.
BUSINESS OPERATIONS
The
subject’s activity is
a manufacturer of
steel rebars and
wire rods with
the production capacity
of 800,000 tons per annum.
PURCHASE [LOCAL]
100%
of raw material
is purchased by
Tata Steel [Thailand] Public Co.,
Ltd., the parent
company.
SALES [LOCAL]
100%
of its products
is sold locally
by Tata Steel
[Thailand] Public Co.,
Ltd.
PARENT COMPANY
Tata Steel
[
Business
Type : Holding
company
Address :
CREDIT
Purchasing
terms are on
the credits of
30-90 days.
Selling
terms are on
the credits of
30-60 days.
BANKING
Kasikornbank Public Co., Ltd.
Head
Office :
Krung Thai
Bank Public Co.,
Ltd.
[Head
Office :
Bangkok Bank
Public Co., Ltd. :
[Head
Office :
Siam City
Bank Public Co.,
Ltd.
[Head
Office :
EMPLOYMENT
The
subject employs 412
office staff and
factory workers.
LOCATION DETAILS
The
premise is rented
for operating an
office at the
heading address in
commercial/ residential area.
Factory
and Warehouse are
located at
COMMENT
In 2005, the
subject’s business performance
had been improved
with the sales
of Bht. 8.5
billion, an increase
of Bht. 2.5 billion
comparing to the
previous year. At
present, Tata Steel
[
FINANCIAL INFORMATION
The
capital was registered
at Bht. 10
million, divided into
100,000 shares of Bht.
100 each.
The
capital was increased
later as followings:
Bht. 1,000
million in April,
1990
Bht. 1,850
million in February , 1992
Bht. 2,115
million in October , 1992
Bht. 3,000
million in October,
1993
The latest capital
was increased to
Bht. 38,599,900,000 divided
into 3,859,990,000 shares
of Bht. 10
each with Bht.
27,111,657,200 paid-up.
On
June 21, 2006,
the capital was
decreased to Bht. 4,628,010,864 divided
into 462,801,864 shares
of Bht. 10 each
with Bht. 3,253,398,864
paid-up.
MAIN SHAREHOLDERS
: [as at
April 10,
2006] at
Bht. 27,111,657,200 of
capitalization.
|
Company |
No. of
Shares |
% |
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Tata Steel
[ Nationality: Thai Address : |
1,913,692,212 |
70.58 |
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Ms.
Siriporn Horrungruang Nationality: Thai Address : |
2,000,000 |
0.07 |
|
Mr. Sawas Horrungruang Nationality: Thai Address : |
1,667,000 |
0.06 |
|
Mr.
Sunthorn Chaylaemlak Nationality: Thai Address : |
1,000,000 |
0.04 |
|
Mr. Sawai Horrungruang Nationality: Thai Address : 114/3
Moo 1, Laemfapha,
Muang |
1,000,000 |
0.04 |
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Gamma Capital
Mutual Fund Nationality: Thai Address : |
897,800 |
0.03 |
|
Ms. Suwanna Luangtrakulchai Nationality: Thai Address : |
150,400 |
0.01 |
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Others |
790,758,308 |
29.17 |
Total shareholders
839
NAME OF
AUDITOR & CERTIFIED
PUBLIC
ACCOUNTANT NO.
Mr. Pisith Chewaruengroj
No. 2803
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2005 &
2004 were:
ASSETS
[Thousand Baht]
|
Current Assets |
2005 |
2004 |
|
|
|
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Cash in hand
& at Bank
|
921 |
617 |
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Trade Accts. Receivable - Related company |
167,125 |
85,133 |
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- Other company |
300,242 |
213,079 |
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Receivable-Related Company |
241 |
1,978 |
|
Inventories [note 1] |
2,699,929 |
1,902,665 |
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Other Current Assets
|
106,090 |
83,697 |
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Total Current
Assets |
3,274,548 |
2,287,169 |
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|
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Fixed Assets [note 2] |
7,037,227 |
7,154,095 |
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Other Assets |
63,916 |
102,003 |
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Total Assets
|
10,375,691 |
9,543,297 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
[Thousand Baht]
|
Current Liabilities |
2005 |
2004 |
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Bank Overdraft |
15,194 |
27,595 |
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Trade Accts. Payable |
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- Related company |
92,958 |
84,634 |
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- Other company |
186,258 |
80,332 |
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Current Portion of Long
Term Loans |
278,478 |
271,320 |
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Payable-Related Company |
64,758 |
95,761 |
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Loan from Related
Company |
1,799,000 |
1,275,000 |
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Other Current Liabilities |
64,348 |
31,871 |
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Total Current
Liabilities |
2,500,994 |
1,866,513 |
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Longs Term Loan
Net of Current
Portion |
4,247,180 |
4,146,580 |
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Debt Re-structure Liabilities
Net of Current
Portion |
260,308 |
278,773 |
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Total Liabilities |
7,008,482 |
6,291,866 |
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Shareholders'
Equity |
|
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Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 3,859,990,000 shares |
|
38,599,900 |
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 3,855,675,700 shares |
38,566,757 |
|
|
Capital Paid |
27,111,657 |
27,111,657 |
|
Premium on Share Capital |
- |
1,139,500 |
|
Decline Value on
Shares Capital |
[14,670,630] |
[14,670,630] |
|
Warrant |
57,275 |
57,275 |
|
Revaluation Surplus |
80,760 |
84,376 |
|
Unrealized Gain on
Increased Value of Investment |
6,000 |
19,300 |
|
Statutory Reserve |
- |
21,904 |
|
Retained Earning -
Unappropriated |
[9,217,853] |
[10,511,951] |
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Total
Shareholders' Equity |
3,367,209 |
3,251,431 |
|
Total
Liabilities & Shareholders' Equity |
10,375,691 |
9,543,297 |
PROFIT &
LOSS ACCOUNT
[Thousand Baht]
|
Revenue |
2005 |
2004 |
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Sales |
8,535,505 |
6,005,753 |
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Other Income |
17,894 |
66,058 |
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Total Revenues
|
8,553,399 |
6,071,811 |
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Expenses |
|
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Cost of Goods
Sold |
7,916,522 |
5,365,353 |
|
Selling & Administrative Expenses |
220,139 |
166,412 |
|
Loss from Exchange Rate |
2,975 |
1,531 |
|
Total Expenses |
8,139,636 |
5,533,296 |
|
Profit / [Loss] Before Interest
Expenses |
413,763 |
538,515 |
|
Interest Expenses |
[281,069] |
[301,063] |
|
Net Profit / [Loss] |
132,694 |
237,452 |
FINANCIAL NOTE
NOTE 1
Inventories
[Thousand
Baht]
|
|
2005 |
2004 |
|
|
|
|
|
Finished Goods |
461,032 |
327,756 |
|
Goods in Process |
229,386 |
234,657 |
|
Raw Material |
1,231,958 |
979,286 |
|
Other & Material
Supplies |
792,361 |
377,315 |
|
Total |
2,714,737 |
1,919,014 |
|
Less: Allowance
for Obsolescent Stock |
[14,808] |
[16,349] |
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Total
|
2,699,929 |
1,902,665 |
NOTE 2
Fixed Assets
[Thousand
Baht]
|
|
2005 |
2004 |
|
|
|
|
|
Land & Improvement |
837,431 |
837,431 |
|
Building & Construction |
2,177,267 |
2,169,986 |
|
Machine & Equipment |
6,719,687 |
6,301,503 |
|
Vehicle |
1,886 |
2,779 |
|
Office Automation &
Furniture |
94,224 |
93,229 |
|
Machine & Equipment under Installation |
13,390 |
313,472 |
|
Total |
9,843,885 |
9,718,400 |
|
Less: Depreciation |
[2,806,658] |
[2,564,305] |
|
Total
|
7,037,227 |
7,154,095 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2005 |
2004 |
|
Net Sales |
42.12 |
|
|
Operating Profit |
[45.70] |
|
|
Net Profit |
[44.12] |
|
|
Fixed Assets |
[1.63] |
|
|
Total Assets |
8.72 |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
92.75 |
89.34 |
|
Operating Profit Margin |
4.88 |
8.99 |
|
S & A
Expenses |
2.58 |
2.77 |
|
Interest Paid |
3.29 |
5.01 |
|
Other Revenues |
0.21 |
1.10 |
|
Net Profit Margin |
1.55 |
3.95 |
|
Earning Per Shares |
0.03 |
0.06 |
|
No. of Shares |
3,855,676 |
3,859,990 |
Net Sales was
increased by 42.12%,
Operating Profit was
decreased by 45.70%,
Net Profit was
decreased by 44.12%,
Fixed Assets was
decreased by 1.63%,
Total Assets was
increased by 8.72%.
Compare each cost
with sales, Cost of
Good Sold was
increased from 89.34%
to 92.75%, Operating
Profit Margin was
decreased from 8.99%
to 4.88%, S
& A Expenses
was decreased from
2.77% to 2.58%,
Interest Paid was decreased
from 5.01% to
3.29%, Other Revenues
was decreased from
1.10% to 0.21%,
Net Profit Margin
was decreased from
3.95% to 1.55%.
Earning Per Shares
was decreased from
0.06 baht per
share to 0.03
baht per share.
Liquidity
|
Liquidity |
2005 |
2004 |
|
Current Ratio |
1.31 |
1.23 |
|
Quick-Assets Ratio |
0.19 |
0.16 |
Current Ratio was
increased from 1.23
to 1.31, show
Current Assets can
cover Current Liabilities,
Liquidity Ratio of
the company was
good, Quick-Assets Ratio
was increased from
0.16 to 0.19,
capacity to pay
Short Term Loan
was not good,
because Current Assets
without Inventory can
not cover Current
Liabilities.
Leverage
|
Leverage |
2005 |
2004 |
|
D/E Ratio |
2.08 |
1.94 |
|
Times Interest Earned |
1.48 |
1.79 |
D/E Ratio was
increased from 1.94
to 2.08, show
the company had
fund from Loan
more than fund from Equity,
investment risked of the company
is medium, Times
Interest Earned was
decreased from 1.79
to 1.48, capacity
to pay interest
paid was good.
Efficiency
|
Efficiency |
2005 |
2004 |
|
Fixed Assets Turnover |
1.21 |
0.84 |
|
Total Assets Turnover |
0.82 |
0.63 |
|
Return on Assets |
1.28 |
2.49 |
|
Return on Equity |
3.94 |
7.30 |
|
Day's Payable |
7.86 |
4.82 |
|
Day’s Inventories |
113.87 |
114.05 |
|
Day’s Receivables |
12.66 |
12.77 |
Fixed Assets Turnover
was increased from
0.84 times to
1.21 times, Total
Assets Turnover was
increased from 0.63
times to 0.82
times, show the
company could use
Assets so efficiently,
Return on Assets
was decreased from
2.49 to 1.28,
Return on Equity
was decreased from
7.30 to 3.94,
capacity to use
Assets to make
profit was good.
Day's Payable was
increased from 5
days to 8
days, while Day’s
Inventories was decreased
from 115 days
to 114 days,
but Day’s Receivables
was stable at
13 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 |
|
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 and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)