MIRA
INFORM REPORT
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Report Date : |
05.11.2007 |
IDENTIFICATION
DETAILS
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Name : |
THE SIAM IRON AND STEEL CO., LTD |
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Registered Office : |
1 Siam Cement Road, Bangsue Bangkok 10800 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1966 |
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Com. Reg. No.: |
0105509001398 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacture steel rods for construction business. |
RATING &
COMMENTS
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MIRA’s Rating : |
C |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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Status : |
Stopped operations |
name of the company
THE SIAM
IRON AND STEEL
CO., LTD.
SUMMARY
BUSINESS ADDRESS : -
TELEPHONE : -
FAX : -
REGISTRATION ADDRESS : 1
SIAM CEMENT ROAD,
BANGSUE,
BANGKOK 10800,
THAILAND
ESTABLISHED : 1966
REGISTRATION NO. : 0105509001398 [Former : 173/2509]
CAPITAL
REGISTERED : BHT.
250,000,000
CAPITAL
PAID-UP : BHT.
250,000,000
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : -
NO. OF
STAFF : -
LINES OF
BUSINESS : -
CORPORATE PROFILE
OPERATING TREND : -
PRESENT SITUATION : STOPPED OPERATION
REPUTATION : -
MANAGEMENT STANDARD : -
HISTORY
The subject was established on
April 21, 1966
as a private limited company under the registered name THE
SIAM IRON AND
STEEL CO., LTD.,
by Thai groups,
with the business
objective originally manufacture steel rods for
construction business. It
is a subsidiary of The
Siam Cement Public
Company Limited. Subject
received the TIS/ISO
9002 Quality Certificate
from Thai Industrial
Standards Institute [TISI]
in June, 1998.
On September
3, 2001, the
subject stopped an operation, and transferred the
whole asset and
business to the
new company named “The Siam Iron & Steel [2001] Co., Ltd.”, due
to the business re-structuring
policy. However, the
subject’s income has been borrowed from commercial bank.
THE BOARD OF DIRECTORS
Name Nationality Age
Mr. Rungroj Rangsiyopas
Thai 44
Mr. Vorapol Jennapa Thai 59
Mr. Anuwat Jongyindee Thai 50
AUTHORIZED PERSON
Two of the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
COMMENT
The economic
downturn had dramatically reduced domestic demand
as well as
heavy competition both
in term of
price and quantity
in global market.
Moreover, the economic
slowdown has sluggish
the domestic construction, reducing
demand of steel.
The subject
has hardly hit
by the recession resulted with
the problem of
its liquidity crunch
as well as
the financial institution
were reluctant to
extend loans, as
they feared increasing
their non-performing loans
levels. To offset
the shortfall and
to recoup foreign - exchange losses more efforts
were focused on
export markets, cutting
an operation costs,
cutting wages, reducing
workforce and production
capacity as well.
Many of
steel companies have
been closed down
their operations or
forced to downsize.
Some of these
remaining has survived
by selling a
stake to foreign
investors often to
those where an
earlier business relationships existed.
FINANCIAL INFORMATION
The capital was
registered at Bht.
90 million, divided
into 900,000 shares
of Bht. 100
each.
Bht. 800
million on September
13, 1996
Bht. 1,000
million on January 29, 1997
On January 30,
2007, the capital
was decreased to
Bht. 250 million,
divided into 10,000,000
shares of Bht.
25 each with fully
paid.
MAIN SHAREHOLDERS : [ as
at April 30,
2007]
|
NAME |
HOLDING |
% |
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The Siam Cement
Public Company Limited Nationality: Thai Address : 1 Siam
Cement Rd., Bangsue, Bangkok |
9,994,572 |
99.94 |
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Others |
5,428 |
0.06 |
Total Shareholders : 56
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mr. Phisit Chewaruengroj No.
2803
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2006 &
2005 were:
ASSETS
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Current Assets |
2006 |
2005 |
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Cash in Hand
& at Bank |
2,244,584 |
231,241 |
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Account Receivable &
Short-term Loan to Related Company |
2,094,539,263 |
2,392,414,208 |
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Patent Permit Receivable |
3,210,000 |
28,890,000 |
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Other Current Assets
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1,345,307 |
1,553,145 |
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Total Current
Assets |
2,101,339,154 |
2,423,088,594 |
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Investment accounted for
under Equity Method |
773,517,928 |
767,797,366 |
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Non-operating Land |
1,173,459 |
1,173,459 |
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Other Assets |
- |
546,092 |
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Total Assets |
2,876,030,541 |
3,192,605,511 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
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Current Liabilities |
2006 |
2005 |
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Trade Accts. Payable |
- |
114 |
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Account Receivable & Short-term Loan from Related Company |
773,352,242 |
767,743,994 |
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Accrued Expenses |
3,115,743 |
- |
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Other Current Liabilities |
420,890 |
1,925,345 |
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Total Current
Liabilities |
776,888,875 |
769,669,453 |
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Total Liabilities |
776,888,875 |
769,669,453 |
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Shareholders'
Equity |
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Share capital : Baht 100 par value
authorized, issued
and fully paid share
capital 10,000,000 shares |
1,000,000,000 |
1,000,000,000 |
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Capital Paid |
1,000,000,000 |
1,000,000,000 |
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Premium on Share
Capital |
1,000,000,000 |
1,000,000,000 |
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Retained Earning Statutory Reserve |
36,000,000 |
36,000,000 |
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General Reserve |
50,000,000 |
50,000,000 |
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Unappropriated |
13,141,666 |
336,936,058 |
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Total
Shareholders' Equity |
2,099,141,666 |
2,422,936,058 |
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Total
Liabilities & Shareholders' Equity |
2,876,030,541 |
3,192,605,511 |
PROFIT & LOSS ACCOUNT
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Revenue |
2006 |
2005 |
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Interest Income |
16,727,835 |
131,066,151 |
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Share of Profit
from Investment accounted
for under Equity
Method |
5,720,562 |
549,385,423 |
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Other Income |
5,008,180 |
44,678,897 |
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Total Revenues
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27,456,577 |
725,130,471 |
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Expenses |
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Selling & Administrative Expenses |
749,125 |
532,433 |
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Total Expenses |
749,125 |
532,433 |
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Profit / [Loss] before Interest
Expenses, Financial Expenses
& Income Tax |
26,707,452 |
724,598,038 |
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Interest & Financial
Expenses |
[5,774,085] |
[77,544,510] |
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Income Tax |
[4,727,759] |
- |
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Net Profit / [Loss] |
16,205,608 |
647,053,528 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
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Annual Growth |
2006 |
2005 |
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Net Profit |
[97.50] |
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Total Assets |
[9.92] |
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Profitability |
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Earning Per Shares |
1.62 |
64.71 |
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No. of Shares |
10,000,000 |
10,000,000 |
Net Profit was decreased by
97.50%, Total Assets
was decreased by
9.92%.
Earning Per Shares
was decreased from
64.71 baht per
share to 1.62
baht per share.
Liquidity
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Liquidity |
2006 |
2005 |
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Current Ratio |
2.70 |
3.15 |
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Quick-Assets Ratio |
2.70 |
3.15 |
Current Ratio was
decreased from 3.15
to 2.70, show
Current Assets can
cover Current Liabilities, Liquidity Ratio of
the company was
good, Quick-Assets Ratio
was decreased from
3.15 to 2.70,
capacity to pay
Short Term Loan
was good too,
because Current Assets
without Inventory can
cover Current Liabilities.
Leverage
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Leverage |
2006 |
2005 |
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D/E Ratio |
0.37 |
0.32 |
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Times Interest Earned |
4.63 |
9.34 |
D/E Ratio was
increased from 0.32
to 0.37, show
the company had
fund from Equity
more than fund
from Loan, investment
risked of the
company is low,
Times Interest Earned
was decreased from
9.34 to 4.63,
capacity to pay
interest paid was
good.
Efficiency
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Efficiency |
2006 |
2005 |
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Return on Assets |
0.56 |
20.27 |
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Return on Equity |
0.77 |
26.71 |
Return on Assets
was decreased from
20.27 to 0.56,
Return on Equity
was decreased from
26.71 to 0.77,
capacity to use
Assets to make
profit was good.
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)