MIRA
INFORM REPORT
|
Report Date : |
09.05.2007 |
IDENTIFICATION DETAILS
|
Name : |
CANADOIL PIPE LTD. |
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Registered Office : |
Unit
2807-2808, 28th Floor,
Empire Tower, 195 South Sathorn
Road, Yannawa, Sathorn, Bangkok
10120 |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
2003 |
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Com. Reg. No.: |
0105546092202 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, exporter and
distributor of steel
tubulars and pipes |
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 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name
CANADOIL PIPE LTD.
SUMMARY
BUSINESS ADDRESS : UNIT
2807-2808, 28th FLOOR,
195
SATHORN,
TELEPHONE : [66] 2670-1636-8
FAX : [66] 2670-1639
E-MAIL ADDRESS : sales@canadoilasia.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2003
REGISTRATION NO. : 0105546092202 [Former:
10454601515]
CAPITAL
REGISTERED : BHT.
4,370,000,000
CAPITAL
PAID-UP : BHT.
3,938,870,000
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
GIACOMO SOZZI, CANADIAN
MANAGING DIRECTOR
NO. OF
STAFF : 200
LINES OF
BUSINESS : STEEL
TUBULARS AND PIPES
MANUFACTURER, DISTRIBUTOR
& EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH
MANAGEMENT STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on August 5,
2003 as a
private limited company
under the name
style CANADOIL PIPE
LTD. by Thai
groups, to manufacture steel
tubulars and pipes.
It currently employs
200 staff.
Canadoil
Pipe Ltd. was
awarded new contract
for special clad
piping modules for
Canadian Oil Sand
Project on May
9, 2005.
The
subject’s registered address
is 195 South
Sathorn Rd., Yannawa,
Sathorn, Bangkok 10120,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Bob Kalbfleisch |
[x] |
American |
51 |
|
Mr. Niccolo Sozzi |
[-] |
Canadian |
35 |
|
Mr. Riccardo Cardano |
[-] |
Italian |
43 |
|
Mr. Giacomo Sozzi |
|
Canadian |
39 |
AUTHORIZED PERSON
Mr. Giacomo Sozzi
can sign or
the director [x]
can jointly sign
with one of
the directors [-]
on behalf of the subject
with company’s affixed.
MANAGEMENT
Mr. Giacomo
Sozzi is the
Managing Director.
He is Canadian
nationality with the
age of 39
years old.
Mr. Niccolo
Sozzi is the
Deputy Managing Director.
He is Canadian
nationality with the
age of 35
years old.
Mr. Bob
Kalbfleisch is the
General Manager.
He is American
nationality with the
age of 51
years old.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer,
exporter and distributor
of steel tubulars
and pipes to API
D 5L & 2B
specification by bending
roll process for
thickness up to 2
½” and
diameters ranging from
160’ to 720’.
Rolled tubulars of
up to 15
meters in length
can be manufactured
with capacity to
then join up
tubulars for increased
length to exacting
customer requirements.
It can be rolled in all types of carbon steel, including low temperature and high yield up to x70 and in the full range of 304, 316 & 321 stainless and alloy steels along with CLAD materials.
Most of the
products are supplied
to petrochemical, oil & gas
industries.
PRODUCTION CAPACITY
500,000 tons/year
IMPORT
Raw
materials, mainly special
steel, alloy steel
and stainless steel,
as well as machinery are
imported from Canada,
Spain, United States
of America &
Italy, and the
rest is purchased
from local supplies.
SALES
50% of its
products is sold
locally to oil
and gas industries.
EXPORT
50% of its products is
exported to Indonesia,
Malaysia, Vietnam and
Saudi Arabia.
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
nor affiliated company
here in Thailand.
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 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 :
EMPLOYMENT
The
subject employs 200
staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial
area.
Factory
is located at
7/204 Moo 6, T.
Mabyangporn,
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT EUR
10,000.
COMMENT
Steel pipe
and tube have sustainable growth in line with strong
demand from industrial sector.
The subject
is the leading
manufacture of various sized
of steel pipe
and tube in the
country.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 1,000,000
divided into 10,000 shares
of Bht. 100
each.
The
capital was increased
later as following:
Bht. 1,000,000,000
on September 3,
2003
Bht. 1,100,000,000
on June 21, 2004
Bht. 2,500,000,000
on June 19,
2006
Bht. 3,958,870,000
on July 12,
2006
Bht. 4,370,000,000
on September 26,
2006
The
latest registered capital
was increased to
Bht. 4,370,000,000 divided into
43,700,000 shares of
Bht. 100 each.
THE SHAREHOLDERS
LISTED WERE : [as at
July 17,
2006] at Bht. 3,938,870,000 of
capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Globalspace Energy
Investments S.L. Nationality: Spanish Address : |
38,398,695 |
97.49 |
|
Canadoil Engineering
and Construction Ltd. Nationality: Thai Address : Sathorn, |
990,000 |
2.51 |
|
Mr. Giacomo
Sozzi Nationality: Canadian Address : Sathorn, |
1 |
- |
|
Mr. Vittorio
Sozzi Nationality: Venetian Address : |
1 |
- |
|
Ms. Nit
Panomvas Nationality: Thai Address : 102 Moo
7, T.
Wangchaplu, A. Kanuvorarakburi, Kamphaengpetch |
1 |
- |
|
Mr. Niccolo
Sozzi Nationality: Italian Address : |
1 |
- |
|
Mr. Giulian
Gelmini Nationality: Italian Address : |
1 |
- |
Total Shareholders
7
NAME OF
AUDITOR & CERTIFIED
PUBLIC
ACCOUNTANT NO.
Ms. Maliwan Pahuwatanakorn No.
4701
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
|
13,891,953 |
311,383 |
|
Trade Accts. Receivable |
42,117,420 |
- |
|
Short-term Loan to
Person & Related
Companies |
10,101,417 |
- |
|
Inventories [note 1] |
224,148,080 |
32,048,441 |
|
Prepaid Value Added
Tax |
24,170,167 |
27,280,787 |
|
Other Current Assets
|
2,184,428 |
1,789,632 |
|
|
|
|
|
Total Current
Assets |
316,613,465 |
61,430,243 |
|
Long-term Investment in
Related Companies |
15,709,732 |
9,562,100 |
|
Fixed Assets [note 2] |
4,023,745,384 |
2,228,896,907 |
|
Intangible Assets |
1,114,878 |
322,398 |
|
Other Assets |
4,284,025 |
664,461 |
|
Total Assets
|
4,361,467,484 |
2,300,876,109 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current Liabilities |
2005 |
2004 |
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Bank |
303,240,919 |
2,121,902 |
|
Trade Accts. Payable |
41,898,315 |
29,917,208 |
|
Short-term Loan from
Person & Related
Companies |
698,166,620 |
48,966,427 |
|
Current Portion of
Renting Contract Liabilities |
12,051,541 |
3,711,673 |
|
Construction & Machinery
Payable |
395,932,060 |
220,122,115 |
|
Other Current Liabilities |
82,139,309 |
21,647,244 |
|
|
|
|
|
Total Current
Liabilities |
1,533,428,764 |
326,486,569 |
|
Long-term Loan |
1,297,370,446 |
869,517,575 |
|
Other Liabilities |
28,279,408 |
6,995,851 |
|
Total Liabilities |
2,859,078,618 |
1,202,999,995 |
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value Authorized &
issued share capital
11,000,000 shares |
1,100,000,000 |
1,100,000,000 |
|
|
|
|
|
Capital Paid |
1,100,000,000 |
864,800,000 |
|
Share Capital Receivable |
472,238,009 |
273,511,735 |
|
Unappropriated [Deficit] |
[69,849,143] |
[40,435,621] |
|
Total
Shareholders' Equity |
1,502,388,866 |
1,097,876,114 |
|
Total
Liabilities & Shareholders' Equity |
4,361,467,484 |
2,300,876,109 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2005 |
2004 |
|
|
|
|
|
Sales |
59,572,199 |
- |
|
Canadian Government’s Subsidy |
1,010,273 |
693,890 |
|
Gain on Exchange
Rate |
12,786,947 |
- |
|
Other Income |
54,304 |
93,532 |
|
Total Revenues
|
73,423,723 |
787,422 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
35,847,897 |
- |
|
Selling & Administrative Expenses |
61,795,573 |
27,288,078 |
|
Total Expenses |
97,643,470 |
27,288,078 |
|
|
|
|
|
Profit / [Loss] before
Interest Expenses |
[24,219,747] |
[26,500,656] |
|
Interest Expenses |
[5,193,775] |
[218,994] |
|
|
|
|
|
Net Profit / [Loss] |
[29,413,522] |
[26,719,650] |
FINANCIAL NOTE
NOTE 1
Inventories
|
|
2005 |
2004 |
|
|
|
|
|
Finished Goods |
2,423,737 |
- |
|
Works in Process |
65,465,936 |
- |
|
Raw Material |
135,101,154 |
32,048,441 |
|
Spare Parts & Material |
9,561,603 |
- |
|
Goods in Transit |
11,595,650 |
- |
|
Total
|
224,148,080 |
32,048,441 |
NOTE 2
Fixed Assets
|
|
2005 |
2004 |
|
|
|
|
|
Land |
109,233,625 |
109,233,625 |
|
Building Factory |
505,999,764 |
- |
|
Building Improvement |
7,042,286 |
- |
|
Factory Equipment |
22,461,648 |
- |
|
Office Furniture |
14,292,513 |
4,914,906 |
|
Vehicle |
41,946,425 |
27,665,606 |
|
Works under Construction |
2,134,755,275 |
944,938,452 |
|
Prepaid Assets |
1,194,502,159 |
1,143,739,083 |
|
Total |
4,030,233,695 |
2,230,491,672 |
|
Less: Depreciation |
[6,488,311] |
[1,594,765] |
|
Total
|
4,023,745,384 |
2,228,896,907 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2005 |
2004 |
|
Net Profit |
[10.08] |
|
|
Fixed Assets |
80.53 |
|
|
Total Assets |
89.56 |
|
|
Profitability |
|
|
|
Cost of Goods
Sold |
60.18 |
- |
|
Operating Profit Margin |
[40.66] |
- |
|
S&A expenses |
103.73 |
- |
|
Interest |
8.72 |
- |
|
Other Revenues |
23.25 |
- |
|
Net Profit Margin |
[49.37] |
- |
|
Earning Per Shares |
[2.67] |
[3.09] |
|
No. of Shares |
11,000,000 |
8,648,000 |
Net Profit was decreased by 10.08%, Fixed Assets was increased by 80.53%, Total Assets was increased by 89.56%.
Compare each cost with sales, Cost of Goods Sold was 60.18%, Operating Profit Margin was -40.66%, S & A Expenses were 103.73%, Interest Paid was 8.72%, Other Revenues was 23.25%, Net Profit Margin was -49.37%.
Earning Per Shares
was increased from
-3.09 baht per share to
-2.67 baht per
share.
Liquidity
|
Liquidity |
2005 |
2004 |
|
Current Ratio |
0.21 |
0.19 |
|
Quick - assets ratio |
0.06 |
0.00 |
Current Ratio was increased from 0.19 to 0.21, show Current Assets can not cover Current Liabilities, Liquidity Ratio of the company was not good, and Quick-assets Ratio was increased from 0.00 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 |
1.90 |
1.10 |
|
Times Interest Earned |
[4.66] |
[121.01] |
D/E Ratio was increased from 1.10 to 1.90, show the company had fund from Loan more than fund from Equity, investment risked of the company is medium and Times Interest Earned was increased from -121.01 to -4.66, capacity to pay interest paid was not good.
Efficiency
|
Efficiency |
2005 |
2004 |
|
Fixed Assets Turnover |
0.01 |
- |
|
Total Assets Turnover |
0.01 |
- |
|
Return on Assets |
[0.67] |
[1.16] |
|
Return on Equity |
[1.96] |
[2.43] |
|
Day’s Payable |
253.20 |
- |
|
Day’s Inventories |
1,354.55 |
- |
|
Days’ Receivables |
254.52 |
- |
Fixed Assets Turnover was 0.01 times, Total Assets Turnover was 0.01 times, show the company could use Assets so efficiently, and Return on Assets was increased from -1.16 to -0.67, Return on Equity was increased from -2.43 to -1.96, capacity to use Assets to make profit was not good.
Day’s Payable was
254 days, Day’s
Inventories was 1,355
days, and Day’s
Receivables was 255
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%)