MIRA
INFORM REPORT
|
Report Date : |
02.11.2007 |
IDENTIFICATION
DETAILS
|
Name : |
THE SIAM CONSTRUCTION STEEL CO,. LTD. |
|
|
|
|
Registered Office : |
22nd Floor, Shinawatra 3
Building, 1010 Vibhavadi -
Rangsit Road, Ladyao,
Jatujak, Bangkok 10900 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2007 |
|
|
|
|
Date of Incorporation : |
1989 |
|
|
|
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Com. Reg. No.: |
0105532094348 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Engaged in manufacturing various kinds of steels
for construction industry such as steel rod,
steel bar, hot
rolled steel, cold
rolled steel, steel
sheet and etc. |
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
THE SIAM CONSTRUCTION STEEL CO,. LTD.
SUMMARY
BUSINESS ADDRESS : 22nd FLOOR,
SHINAWATRA 3 BUILDING,
1010
VIBHAVADI - RANGSIT ROAD, LADYAO,
JATUJAK, BANGKOK 10900
TELEPHONE : [66] 2949-2949
FAX : [66] 2949-2897
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1989
REGISTRATION NO.
: 0105532094348 [Former : 9434/2532]
CAPITAL
REGISTERED : BHT.
1,750,000,000
CAPITAL
PAID-UP : BHT.
1,750,000,000
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR.
LARPTHAVEE SENAWONGSE, THAI
MANAGING DIRECTOR
& FACTORY MANAGER
NO. OF
STAFF : 300
LINES OF
BUSINESS : CONSTRUCTION MATERIALS
MANUFACTURER, DISTRIBUTOR
& EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT WITH AVERAGE PERFORMANCE
HISTORY
The subject was
established on October 4,
1989 as a
private limited company under the name style
THE SIAM CONSTRUCTION STEEL CO., LTD.,
by Thai groups,
initially by a
wholly owned subsidiary
of Millenium Steel
Public Co., Ltd. It
is a merger company among
The Siam Iron
and Steel [2001]
Co., Ltd., The
Siam Construction Steel
Co., Ltd., member
of The Siam Cement Group
and N.T.S. Steel
Group Public Co., Ltd.,
in order to manufacture various types of
steels for both
domestic and international markets.
It currently employs
approximately 300 staff.
The subject currently
is a wholly owned subsidiary
of Tata Steel
[Thailand] Public Company
Limited, a member
of Tata Steel
Limited, India.
The subject’s registered
address is 22nd Floor, Shinawatra 3 Building,
1010 Vibhavadi-Rangsit Rd.,
Ladyao, Jatujak, Bangkok
10900, and this
is the subject’s current business
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ajchariya Pathumanont |
|
Thai |
55 |
|
Mrs. Srithai Hemsoraj |
|
Thai |
54 |
|
Mr. Santi Charnkolravee |
|
Thai |
57 |
|
Mr. Larpthavee Senawongse |
|
Thai |
48 |
|
Mr. Thana Reungsilasingh |
|
Thai |
52 |
AUTHORIZED PERSON
Two of the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Larpthavee
Senawongse is the Managing Director & Factory Manager.
He is Thai nationality with
the age of
48 years old.
Mr. Piyarat
Wacharayothin is the
Marketing Manager.
He is Thai nationality.
BUSINESS OPERATIONS
The
subject is engaged in
manufacturing various kinds of
steels for construction industry such as steel
rod, steel bar,
hot rolled steel,
cold rolled steel,
steel sheet and
etc., under its
own brand name
“SCSC”.
PRODUCTION
500,000
tons per annum.
PURCHASE
80% of raw materials mainly
steel sheet, scarp
and etc. are purchased
from local suppliers,
the remaining 20%
as well as
machinery are imported
from Germany, Australia,
Brazil, Republic of
China, Japan and
France.
DISTRIBUTION
80% of its products is
sold by wholesale
to dealers &
construction contractors, and
the remaining 20%
is exported to
Republic of China,
Singapore, Japan, Taiwan,
Germany and Australia.
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
on negotiated.
Exports are against
L/C at sight or T/T
on negotiated.
BUSINESS TRANSACTION
The products are
sold to customer
mainly by credit
with given at 30-60 days. The
subject is not
found to have
problem on its
account receivable.
BANKING
Bangkok Bank
Public Co., Ltd.
[Head Office : 333 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
[Maptaphut Branch:
636/1 Moo 1, Maptaphut,
Muang, Rayong]
The Siam
Commercial Bank Public
Co., Ltd.
[Head Office :
9 Ratchadapisek Rd.,
Ladyao, Jatujak, Bangkok
10900]
Krung Thai
Bank Public Co., Ltd.
[Maptaphut Branch:
129 Moo 8, Maptaphut, Muang, Rayong]
Kasikornbank Public
Co., Ltd.
EMPLOYMENT
The subject employs
approximately 300 staff.
[office staff and
factory worker]
LOCATION DETAILS
The premise is owned
for administrative office at
the heading address. Premise is located in
commercial/residential area.
Factory and warehouse
is located at
I-23 Mabtaphad Industrial Estate, Mabtaphud, Muang, Rayong
21150. Tel. : [66] 38
683-968, Fax. : [66] 38 683-969.
ADDITIONAL INFORMATION
The company
has obtained loans
of 3.5 billion bath this
year for its semi-blast
furnace worth between
3.4 billion and 3.6
billion baht. It
has set aside
a capital expenditure
budget of 400
million baht annually
for regular maintenance.
Tata Steel’s refinancing late last year
has given the
company an outstanding
low debt level of
4.7 billlion baht,
or 0.5 times.
The furnace project,
with a capacity of 500,000
tonnes per year,
is aimed at
reducing costs by
instilling quality control
for products and
preparing the company
for premium grade
goods.
Tata Steel is
the largest unit
of the Tata group, with
a combined annual
capacity of 25
million tonnes, accounting
for about half
of the group’s total revenue.
Other businesses, including
automobiles, computer software,
chemicals, hotels and
power generation account
for the rest.
COMMENT
Tata’s Thailand operation
sold 1.05 million
tonnes of construction steel last year
to bring in
total revenue of
18.8 billion bath.
For its first
half year performance
ending June 30,
the company sold
633,000 tonnes worth
5.77 billion baht,
a 20% increase compared to
the same period
of last year.
It hopes to
boost exports to
about 10% of
total sales this
year from only
2-3% in the previous year. So far,
export prices of
construction steel stand
at US $530 a
tonnes or around
18,000 baht per
tonne. In Thailand
it is selling at
19,500 baht a
tonne.
FINANCIAL INFORMATION
The capital was
initially registered at
Bht. 1,000,000 divided
into 10,000 shares of
Bht. 100 each.
Bht. 650,000,000 on June 7,
1990
Bht. 1,750,000,000 on March 27,
1995
The latest registered
capital was increased
to Bht. 1,750,000,000 divided into 17,500,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED WERE
: [as at
July 9, 2007]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Tata Steel
[Thailand] Public Company
Limited Nationality: Thai Address : 1010 Vibhavadee Rangsit Rd., Jatujak,
Bangkok |
17,499,994 |
100.00 |
|
Mr. Sirirote
Methamanosak Nationality: Thai Address : 146/36 Suksawad
Rd., Bangpueng,
Phrapradaeng, Bangkok |
1 |
- |
|
Mrs.
Sureeporn Angsuthornrangsee Nationality: Thai Address : 60/112
Bangna-Trad Rd., Dokmai,
Prawes, Bangkok |
1 |
- |
|
Ms. Prinda Boonpraspai Nationality: Thai Address : 4/35
Petchburi Rd., Thanon
Phyathai,
Rajthewee, Bangkok |
1 |
- |
|
Ms. Pavinee Thomthongkham Nationality: Thai Address : 7/771
Bankuay-Sainoi Rd., Taweewattana, Sainoi, Nonthaburi |
1 |
- |
|
|
|
|
|
Ms.
Pornphan Rojhataikarn Nationality: Thai Address : 161/412
Charansanitwong Rd., Bangkhunsri, Bnagkoknoi, Bangkok |
1 |
- |
|
Mr. Wasan Sapa-eiamchit Nationality: Thai Address : 121/1
Rangsit-Nakornnayok Rd., Prachatipat,
Thanyaburi, Bangkok |
1 |
- |
Total Shareholders
7
NAME OF AUDITOR &
CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Phisit Chewareungroj No.
2803
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
2006 & 2005 were:
ASSETS
|
Current Assets |
2006 |
2005 |
|
|
|
|
|
Cash in hand
& at Bank
|
8,283,870 |
3,566,967 |
|
Trade Accts. Receivable - Related Company |
119,331,292 |
240,651,353 |
|
- Other Company |
548,319,010 |
339,202,701 |
|
Receivable - Related company |
319,479,215 |
55,732,011 |
|
Short Term Loan
to Related company |
50,000,000 |
- |
|
Inventories |
1,576,569,479 |
1,416,920,342 |
|
Other Current Assets
|
39,416,682 |
21,810,973 |
|
Total Current
Assets |
2,661,399,548 |
2,077,884,347 |
|
Investment to Common
Shares |
1,241 |
1,241 |
|
Fixed Assets |
594,993,055 |
620,458,564 |
|
Deferred Income Tax |
40,507,093 |
220,334,587 |
|
Other Assets |
24,584,254 |
21,901,989 |
|
Total Assets |
3,321,485,191 |
2,940,580,728 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current Liabilities |
2006 |
2005 |
|
|
|
|
|
Bank Overdraft |
3,078,202 |
18,126,173 |
|
Trade Accts. Payable |
|
|
|
- Related Company |
54,450,631 |
29,789,623 |
|
- Other Company |
566,999,495 |
200,402,270 |
|
Payable -Related Company |
14,880,626 |
14,709,543 |
|
Short Term Loan
from Related Company |
- |
620,000,000 |
|
Other Current Liabilities |
86,576,976 |
44,797,474 |
|
Total Current
Liabilities |
725,985,930 |
927,825,083 |
|
Estimation Liabilities for
Employees |
12,777,071 |
11,049,415 |
|
Total Liabilities |
738,763,001 |
938,874,498 |
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
Share capital : Baht 100 par value
authorized, issued
and fully paid share
capital 17,500,000 shares |
1,750,000,000 |
1,750,000,000 |
|
Capital Paid |
1,750,000,000 |
1,750,000,000 |
|
Retained Earning -
Unappropriated |
832,722,190 |
251,706,230 |
|
Total
Shareholders' Equity |
2,582,722,190 |
2,001,706,230 |
|
Total
Liabilities & Shareholders' Equity |
3,321,485,191 |
2,940,580,728 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2006 |
2005 |
|
|
|
|
|
Sales |
8,454,297,385 |
9,731,943,975 |
|
Other Income |
4,422,326 |
- |
|
Gain/[Loss] on Exchange
Rate |
167,042,046 |
132,803,323 |
|
Total Revenues
|
8,625,761,757 |
9,864,747,298 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
7,568,086,138 |
9,016,059,981 |
|
Selling & Administrative Expenses |
278,979,734 |
303,979,047 |
|
Loss on Exchange
Rate |
- |
2,207,144 |
|
Total Expenses |
7,847,065,872 |
9,322,246,172 |
|
Profit / [Loss] from Operation |
778,695,885 |
542,501,126 |
|
Interest & Finance
Expenses |
[17,852,431] |
[61,014,045] |
|
Income Tax |
[179,827,494] |
[95,509,003] |
|
Net Profit / [Loss] |
581,015,960 |
385,978,078 |
BALANCE SHEET [BAHT]
The
three-month financial figures
published as at
March 31, 2007
was:
ASSETS
|
Current Assets |
2007 |
|
|
|
|
Cash in hand
& at Bank
|
9,257,316 |
|
Trade Accts. Receivable - Related Company |
131,694,168 |
|
- Other Company |
824,098,621 |
|
Receivable - Related company |
466,993,918 |
|
Short Term Loan
to Related company |
247,000,000 |
|
Inventories |
1,421,637,830 |
|
Other Current Assets
|
34,765,242 |
|
Total Current
Assets |
3,135,447,095 |
|
Investment to Common
Shares |
1,241 |
|
Fixed Assets |
602,116,420 |
|
Deferred Income Tax |
4,226,648 |
|
Other Assets |
26,761,199 |
|
Total Assets |
3,768,552,603 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current Liabilities |
2007 |
|
|
|
|
Bank Overdraft |
1,243,752 |
|
Trade Accts. Payable |
|
|
- Related Company |
285,697,960 |
|
- Other Company |
215,773,647 |
|
Payable -Related Company |
207,131,887 |
|
Accrued Expenses & Other Current Liabilities |
149,937,504 |
|
Total Current
Liabilities |
859,784,750 |
|
Estimation Liabilities for
Employees |
14,088,827 |
|
Total Liabilities |
873,873,577 |
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
Share capital : Baht 100 par value
authorized, issued
and fully paid share
capital 17,500,000 shares |
1,750,000,000 |
|
Capital Paid |
1,750,000,000 |
|
Retained Earning -
Unappropriated |
1,144,679,026 |
|
Total
Shareholders' Equity |
2,894,679,026 |
|
Total
Liabilities & Shareholders' Equity |
3,768,552,603 |
PROFIT & LOSS ACCOUNT
|
Revenue |
Jan.
1, 2007- March 31, 2007 |
|
|
|
|
Sales |
2,794,957,913 |
|
Other Income |
91,197,615 |
|
Gain/[Loss] on Exchange
Rate |
11,722,173 |
|
Total Revenues
|
2,897,877,701 |
|
Expenses |
|
|
|
|
|
Cost of Goods
Sold |
2,469,645,368 |
|
Selling & Administrative Expenses |
77,896,282 |
|
Total Expenses |
2,547,541,650 |
|
Profit / [Loss] from Operation |
350,336,051 |
|
Interest & Finance
Expenses |
[2,098,770] |
|
Income Tax |
[36,280,445] |
|
Net Profit / [Loss] |
311,956,836 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2006 |
2005 |
|
Net Sales |
[13.13] |
|
|
Operating Profit |
64.56 |
|
|
Net Profit |
50.53 |
|
|
Fixed Assets |
[4.10] |
|
|
Total Assets |
12.95 |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
89.52 |
92.64 |
|
Operating Profit Margin |
9.21 |
5.60 |
|
S & A
Expenses |
3.30 |
3.12 |
|
Interest Paid |
0.21 |
0.63 |
|
Other Revenues |
2.03 |
1.36 |
|
Net Profit Margin |
6.87 |
3.97 |
|
Earning Per Shares |
33.20 |
22.06 |
|
No. of Shares |
17,500,000 |
17,500,000 |
Net Sales was
decreased by 13.13%,
Operating Profit was
increased by 64.56%,
Net Profit was
increased by 50.53%,
Fixed Assets was
decreased by 4.10%,
Total Assets was
increased by 12.95%.
Compare each cost
with sales, Cost of
Good Sold was
decreased from 92.64%
to 89.52%, Operating
Profit Margin was
increased from 5.60%
to 9.21%, S
& A Expenses
was increased from
3.12% to 3.30%,
Interest Paid was decreased
from 0.63% to 0.21%, Other
Revenues was increased
from 1.36% to
2.03%, Net Profit
Margin was increased
from 3.97% to
6.87%.
Earning Per Shares
was increased from
22.06 baht per
share to 33.20
baht per share.
Liquidity
|
Liquidity |
2006 |
2005 |
|
Current Ratio |
3.67 |
2.24 |
|
Quick-Assets Ratio |
1.44 |
0.69 |
Current Ratio was
increased from 2.24
to 3.67, show
Current Assets can
cover Current Liabilities, Liquidity Ratio of
the company was
good, Quick-Assets Ratio
was increased from
0.69 to 1.44,
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 |
0.29 |
0.47 |
|
Times Interest Earned |
43.62 |
8.93 |
D/E Ratio was
decreased from 0.47
to 0.29, show
the company had
fund from Equity
more than fund
from Loan, investment
risked of the company is low,
Times Interest Earned
was increased from
8.93 to 43.62,
capacity to pay
interest paid was
good.
Efficiency
|
Efficiency |
2006 |
2005 |
|
Fixed Assets Turnover |
14.21 |
15.69 |
|
Total Assets Turnover |
2.55 |
3.31 |
|
Return on Assets |
17.49 |
13.13 |
|
Return on Equity |
22.50 |
19.28 |
|
Day's Payable |
24.14 |
7.41 |
|
Day’s Inventories |
67.13 |
52.41 |
|
Day’s Receivables |
23.35 |
12.55 |
Fixed Assets Turnover
was decreased from
15.69 times to
14.21 times, Total
Assets Turnover was
decreased from 3.31
times to 2.55
times, show the
company could not
use Assets so
efficiently, Return on
Assets was increased
from 13.13 to
17.49, Return on
Equity was increased
from 19.28 to
22.50, capacity to
use Assets to
make profit was
good.
Day's Payable was
increased from 8
days to 25
days, Day’s Inventories
was increased from
53 days to
68 days, and
Day’s Receivables was
increased from 13
days to 24
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. |
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%)