MIRA
INFORM REPORT
|
Report Date : |
8th March, 2007 |
IDENTIFICATION
DETAILS
|
Name : |
FERRO [THAILAND] CO.,LTD. |
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Registered Office : |
46/4
Moo 13, Rimklong
Rapeepat Road, T. Kochasith, A. Nongkae, Saraburi
18250, Thailand |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
29.10.1984 |
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Com. Reg. No.: |
0105527038508 [Former : 3853/2527] |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Distributor & Exporter of glazes and
coating color powder
for ceramic industry. |
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 : |
Good |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
s
Company Name
FERRO [THAILAND]
CO., LTD.
SUMMARY
BUSINESS ADDRESS
: 46/4
MOO 13, RIMKLONG
RAPEEPAT ROAD,
T. KOCHASITH,
A. NONGKAE,
SARABURI 18250,
THAILAND
TELEPHONE : [66] 36 375-027-32
FAX : [66] 36 375-024
E-MAIL ADDRESS : rattana.pomprasirt@ferro.co.th
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1984
REGISTRATION NO.
: 0105527038508 [Former : 3853/2527]
CAPITAL
REGISTERED : BHT.
213,275,000
CAPITAL
PAID-UP : BHT.
213,275,000
FISCALYEAR
CLOSING DATE : DECEMBER
31
LEGAL STATUS
: PRIVATE
LIMITED COMPANY
EXECUTIVE : MR. MATIAS PETER
BELLS, AFRICAN
MANAGING DIRECTOR
NO. OF
STAFF : 158
LINES OF
BUSINESS : CERAMIC COATING
CHEMICAL
MANUFACTURER &
EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was
established on October
29, 1984 as
a private limited
company under the
registered name “Asean Cerachem
Factory Co., Ltd.”.
On July 5, 1991
its name had
been changed to Ferro-TPI
[Thailand] Co., Ltd.,
as a joint venture between
the TPI Group
and the Ferro
Corporation Group of
the United States
of America. The
Objective was to produce
and market frit
under the ASEAN
Industrial Joint Venture
[AIJV] scheme which
comprises a package
of incentives including
protection by the
Ministry of Industry
of Thailand under
an agreement with
investment privileges which
will allow Ferro-TPI
to be the sole producer
of frit, as
well as the
privilege of a
90 percent reduction
in the applicable tariff on
frit sold by Ferro-TPI to Asean countries.
On July 5,
1993 TPI Group
sold shares in Ferro-TPI [Thailand] Co., Ltd.,
then the name
was changed to Ferro
[Thailand] Co., Ltd.
It currently employs
158 staff.
Currently, the subject
is a subsidiary of Ferro
Corporation., U.S.A.
The subject’ s registered
address is located
at 46/4 Moo 13,
Rimklong Rapeepat Rd.,
T. Kochasith, A.
Nongkae, Saraburi 18250
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTORS
Name Nationality Age
Mr. Somboon Puapuncharoen Thai -
Mr. Anthony Tan
Beng Zay Singaporean 61
Mr. Matias Peter Bells African -
AUTHORIZED PERSON
Two of the above directors
can jointly sign
on behalf of
the subject with company’s
affixed.
MANAGEMENT
Mr. Matias
Peter Bells is
the Managing Director.
He is African nationality.
Mr. Ferry
Carlebur is the Marketing Manager.
He is Dutch nationality.
Mrs. Krisanarudee Od-ampai is the
Administration Manager.
She is Thai nationality.
Mr. Suwan Laosaeng-ngam is
the Factory Manager.
He is Thai nationality.
Mr. Pol
Wongrienthong is the
Financial Controller.
He is Thai nationality.
BUSINESS OPERATIONS
The subject’s activities
are manufacturer, distributor
& exporter of glazes
and coating color
powder for ceramic
industry.
MAJOR BRAND
“FERRO”
IMPORT [COUNTRY]
60% of its base chemical
and spare parts
are imported from
United States of America, United
Kingdom, Republic of
China, France, Singapore
& Israel, and
40% of the rests is
purchased locally.
MAJOR SUPPLIERS
|
Name |
Country |
Products |
|
|
|
|
|
Ferro Corporation Ltd. |
U.S.A. |
Base chemical |
SALES [LOCAL]
80% of its products is
sold locally to
manufacturers, wholesalers and
end-users.
EXPORT [COUNTRIES]
20% of its products
is exported to Malaysia, Indonesia,
Singapore, Japan, India,
Philippines, Vietnam,
Bangladesh and Republic
of China.
PARENT COMPANY
Ferro Corporation
Ltd.
Address: 1000 Lakeside
Avenue, Cleveland Ohio
44114, U.S.A.
LIAISON OFFICE
4th Floor, Chaisa-Nguan Building, 1575/1 New
Petchburi Road, Phyathai,
Bangkok 10310, Thailand.
Tel : [66] 2254-3997-8, Fax
: [66] 2254-3999.
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.
CREDIT
Sales are by
cash or on
the credits term
of 30-60-90 days.
Local bills are
paid by cash
or on the credits term
of 30-60-90 days.
Imports are by
L/C at sight or T/T
on the credit term of
30 days.
Exports are against
L/C at sight or T/T.
BANKING
Bangkok Bank
Public Co., Ltd.
[Saraburi Branch, Muang,
Saraburi Province]
Kasikornbank Public
Co., Ltd.
[Saraburi Branch, Saraburi
Province]
Siam Commercial
Bank Public Co.,
Ltd.
EMPLOYMENT
The subject employs
158 office staff
and factory workers.
LOCATION DETAILS
The premise is
owned for operating
office, factory and
warehouse at the
heading address. Premise
is located in
rural area.
COMMENT
Demand of ceramic
products especially from
construction industry has
significantly risen during
this few years,
therefore, demand of
related products like
color coating chemical
has also increased
as well.
The future prospect
is promising as
demand of ceramic
products has continued
growing in line
with an improvement
of construction materials
market.
FINANCIAL INFORMATION
The capital was
registered at Bht. 30,000,000 divided into 300,000
shares of Bht.
100 each.
Capital was increased
later as followings
:
Bht. 50,000,000 on July 5,
1991
Bht. 75,000,000 on September 24,
1992
Bht.
150,000,000 on December
28, 1994
Bht. 213,275,000
on October 18,
1996
The latest registered
capital was increased
to Bht. 213,275,000 divided into 2,132,750
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS LISTED WERE
[as at April 30, 2006]
|
NAME |
HOLDING |
% |
|
Ferro Corporation Ltd. Nationality: American Address : Ohio,
U.S.A. |
2,132,744 |
99.99 |
|
Mr. George
Duncan Nationality: South African Address : 46/4
Moo 13, Nongkae,
Saraburi |
1 |
|
|
Mr. James
A. Galista Nationality: American Address : Ohio,
U.S.A. |
1 |
|
|
Mr. Anthony,
Tan Beng Zay
Nationality: Singaporean Address : Stubb
Rd., Hong Kong. |
1 |
=0.01 |
|
Mr. Wises,
Breth Warfeld Nationality: American Address : Ohio,
U.S.A. |
1 |
|
|
Mr. Robert
A. Riger Nationality: American Address : Ohio,
U.S.A. |
1 |
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|
Mr. Steven
Koon Yang Nationality: American Address : Shanghai,
Republic of China |
1 |
|
Total Shareholders : 7
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT NO.
Mrs. Siriphen
Sukcharoenyingyong No. 3636
BALANCE SHEET [BAHT]
The latest financial figures published as at
December 31, 2005 &
2004 were:
ASSETS
|
Current Assets |
2005 |
2004 |
|
|
|
|
|
Cash in hand
& at Bank
|
155,671,778 |
62,379,806 |
|
Trade Accts. Receivable - Related Companies |
4,283,495 |
10,404,444 |
|
- Other Companies [note 1] |
340,850,887 |
360,260,738 |
|
Related Companies Receivable |
888,195 |
344,118 |
|
Inventories [note 2] |
214,410,389 |
150,705,768 |
|
Prepaid Expenses |
2,471,420 |
3,954,489 |
|
Other Current Assets
|
19,914,933 |
11,886,385 |
|
|
|
|
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Total Current
Assets |
738,491,097 |
599,935,748 |
|
Fixed Assets [note 3] |
273,179,313 |
218,656,004 |
|
Deferred Income Tax |
10,637,938 |
7,537,059 |
|
Other Assets |
1,026,100 |
1,106,100 |
|
Total Assets |
1,023,334,448 |
827,234,911 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current Liabilities |
2005 |
2004 |
|
|
|
|
|
Trade Accts. Payable - Related Companies |
14,483,188 |
13,207,775 |
|
- Other Companies |
191,095,983 |
159,264,214 |
|
Related Companies Payable |
8,012,479 |
3,272,914 |
|
Accrued Income Tax |
20,779,295 |
22,868,491 |
|
Accrued Expenses |
60,784,800 |
43,796,664 |
|
Other Current Liabilities |
4,002,948 |
3,312,532 |
|
|
|
|
|
Total Current
Liabilities |
299,158,693 |
245,722,590 |
|
Deferred Income Tax |
3,597,768 |
3,377,607 |
|
Employees’ Pension |
11,505,016 |
10,370,000 |
|
Total Liabilities |
314,261,477 |
259,470,197 |
|
|
|
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Shareholders'
Equity |
|
|
|
|
|
|
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Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 2,132,750 shares |
213,275,000 |
213,275,000 |
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|
|
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Capital Paid |
213,275,000 |
213,275,000 |
|
Retained Earning Appropriated for
Statutory Reserve |
21,327,500 |
21,327,500 |
|
Unappropriated |
474,470,471 |
333,162,214 |
|
Total
Shareholders' Equity |
709,072,971 |
567,764,714 |
|
Total Liabilities
& Shareholders' Equity |
1,023,334,448 |
827,234,911 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2005 |
2004 |
|
|
|
|
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Sales |
1,442,621,618 |
1,345,339,012 |
|
Other Income |
9,288,625 |
3,945,698 |
|
Total Revenues
|
1,451,910,243 |
1,349,284,710 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,087,880,962 |
984,608,478 |
|
Selling & Administrative Expenses |
181,645,234 |
185,636,315 |
|
Total Expenses |
1,269,526,196 |
1,170,244,793 |
|
|
|
|
|
Profit / [Loss] before
Interest Expenses &
Income Tax |
182,384,047 |
179,039,917 |
|
Interest Expenses |
[89] |
[422] |
|
Income Tax |
[41,075,701] |
[41,189,073] |
|
|
|
|
|
Net Profit / [Loss] |
141,308,257 |
137,850,422 |
FINANCIAL NOTE
NOTE 1
Trade Accts. Receivable-Other Company
[Thousand Baht]
|
|
2005 |
2004 |
|
|
|
|
|
Trade Accts. Receivable |
355,260 |
368,340 |
|
Less: Allowance for
Doubtful Account |
[14,409] |
[8,080] |
|
Trade
Accts. Receivable - Net |
340,851 |
360,260 |
NOTE 2
Inventories
[Thousand Baht]
|
|
2005 |
2004 |
|
|
|
|
|
Raw Material |
80,729 |
63,922 |
|
Goods in Progress |
1,325 |
853 |
|
Finished Goods |
111,121 |
53,134 |
|
Materials |
6,754 |
10,663 |
|
Goods in Transit |
21,818 |
29,201 |
|
Total |
221,747 |
157,773 |
|
Less: Reserve for Stock Obsolescence |
[7,337] |
[7,067] |
|
Inventories - Net |
214,410 |
150,706 |
NOTE 3
Fixed Assets
[Thousand Baht]
|
|
2005 |
2004 |
|
|
|
|
|
Land & Improvement |
22,481 |
22,021 |
|
Building |
91,378 |
64,171 |
|
Machinery & Equipment |
300,306 |
299,541 |
|
Office Automation &
Furniture |
14,539 |
13,979 |
|
Vehicle |
10,137 |
12,883 |
|
Works under Construction & Installation |
52,020 |
2,545 |
|
Total |
490,861 |
415,140 |
|
Less: Depreciation |
[217,682] |
[196,484] |
|
Fixed
Assets - Net |
273,179 |
218,656 |
FINANCIAL ANALYSIS
Annual Growth & Profitability
|
Annual Growth |
2005 |
2004 |
|
Sales |
7.23 |
|
|
Operating |
[5.00] |
|
|
Net Profit |
2.51 |
|
|
Fixed Assets |
24.94 |
|
|
Total Assets |
23.71 |
|
|
Profitability |
|
|
|
Cost of Goods
Sold |
75.41 |
73.19 |
|
Operating Profit Margin |
12.64 |
13.31 |
|
S&A expenses |
12.59 |
13.80 |
|
Interest |
0.00 |
0.00 |
|
Other Revenues |
0.64 |
0.29 |
|
Net Profit Margin |
9.80 |
10.25 |
|
Earning Per Shares |
66.26 |
64.64 |
|
No. of Shares |
2,130,750 |
2,132,750 |
Net Sales was
increased by 7.23%,
Operating Profit was
decreased by 5.00%,
Net Profit was
increased by 2.51%,
Fixed Assets was
increased by 24.94%,
Total Assets was
increased by 23.71%.
Compare each cost with sales, Cost of Goods Sold was increased from 73.19% to 75.41%, Operating Profit Margin was decreased from 13.31% to 12.64%, S & A Expenses were decreased from 13.80% to 12.595%, Interest Paid was stable at 0.00%, Other Revenues was increased from 0.29% to 0.64%, Net Profit Margin was decreased from 10.25% to 9.80%.
Earning Per Shares was increased from 64.64 baht per share to 66.26 baht per share.
Liquidity
|
Liquidity |
2005 |
2004 |
|
Current Ratio |
2.47 |
2.44 |
|
Quick - assets ratio |
1.68 |
1.76 |
Current Ratio was
increased from 2.44
to 2.47, show
Current Assets can
cover Current Liabilities, Liquidity Ratio of
the company was
good, and Quick-assets Ratio was decreased
from 1.76 to
1.68, capacity to
pay Short Term
Loan was good
too, because Current
Assets without Inventory
can cover Current
Liabilities.
Leverage
|
Leverage |
2005 |
2004 |
|
D/E Ratio |
0.44 |
0.46 |
|
Times Interest Earned |
2,049,258.96 |
424,265.21 |
D/E Ratio was
decreased from 0.46
to 0.44, show
the company had
fund from Equity
more than fund
from Loan, investment
risked of the
company is low
and Times Interest
Earned was increased
from 424,265.21 to
2,019,258.96, capacity to
pay interest paid
was good.
Efficiency
|
Efficiency |
2005 |
2004 |
|
Fixed Assets Turnover |
5.28 |
6.15 |
|
Total Assets Turnover |
1.41 |
1.63 |
|
Return on Assets |
13.81 |
16.66 |
|
Return on Equity |
19.93 |
24.28 |
|
Day’s Payable |
47.69 |
42.62 |
|
Day’s Inventories |
53.51 |
40.33 |
|
Days’ Receivables |
85.06 |
96.40 |
Fixed Assets Turnover
was decreased from
6.15 times to
5.28 times, Total
Assets Turnover was
decreased from 1.63
times to 1.41
times, show the
company could not
use Assets so
efficiently, and Return
on Assets was
decreased from 16.66
to 13.81, Return
on Equity was
decreased from 24.28
to 19.93, capacity
to use Assets to make
profit was not
good.
Day’s Payable was
increased from 43
days to 48
days, and Day’s
Inventories was increased
from 41 days
to 54 days, while Day’s
Receivables was decreased
from 97 days
to 86 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%)