MIRA
INFORM REPORT
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Report Date : |
18.10.2007 |
IDENTIFICATION DETAILS
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Name : |
KANGWAL POLYESTER CO., LTD. |
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Registered Office : |
1426/18-20
Soi Yosse, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
1995 |
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Com. Reg. No.: |
0705538000293 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, distributor and exporter of
polyester fibers |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name
KANGWAL POLYESTER CO., LTD.
SUMMARY
BUSINESS ADDRESS : 1426/18-20 SOI
YOSSE,
THEPSIRIN, POMPRAB,
TELEPHONE : [66] 2220-7000
FAX : [66] 2224-3388,
2224-7204
E-MAIL ADDRESS : sales@kangwal.co.th
REGISTRATION ADDRESS : 88
MOO 2, NONGCHUMPOL,
KHAOYOI,
ESTABLISHED : 1995
REGISTRATION NO. : 0705538000293 [Former
ROR. BOR 526]
CAPITAL
REGISTERED : BHT.
1,700,000,000
CAPITAL
PAID-UP : BHT.
1,700,000,000
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
NIPHAN WONGPHANLERT, THAI
MANAGING DIRECTOR
NO. OF
STAFF : 750
LINES OF
BUSINESS : SYNTHETIC YARNS
MANUFACTURER &
EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH
MANAGEMENT STANDARD : MANAGEMENT WITH
AVERAGE PERFORMANCE
HISTORY
The subject
was established on
March 10, 1995
as a private
limited company under the name style KANGWAL
POLYESTER CO., LTD. by Thai and Japanese
partners in order to produce
synthetic yarn for
both domestic and
export markets. The
subject received a
promotional privilege from the
Board of Investment
[BOI] since it has
started production. The subject currently has
staff strength of 750.
Subject has
been achieved the
international quality standard ISO 9001 : 2000 certification
by SGS, on
June 3, 2006.
The subject’s registered
address is 88
Moo 2, Nongchumpol,
Khaoyoi, Petchburi 76140,
and this is also
the subject’s factory
address.
The administrative office is
at 1426/18-20 Soi Yosse,
Krungkasem Rd., Thepsirin,
Promprab, Bangkok 10100.
THE BOARD
OF DIRECTORS
Name Nationality Age
Mr. Kangwal Wongphanlert [x]
- Chairman Thai 74
Mr. Niphan Wongphanlert [x] Thai 45
Mrs. Vallapa Wongphanlert [x] Thai 67
Mr. Rungrueng Wongphanlert [x] Thai 43
Ms. Nualphan Wongphanlert Thai 41
Mr. Teera Puengchittisarn Thai 46
Mr. Katsude Ishihara Japanese 56
Mr. Shigeharu Miyake Japanese 58
Mrs. Wallapa Assakul Thai 57
AUTHORIZED PERSON
Two of the
mentioned directors [x]
can jointly sign
or anyone of
the mentioned directors
[x] can jointly
sign with anyone
of the rest
directors on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Niphan
Wongphanlert is the
Managing Director.
He is Thai
nationality with the
age of 45
years old.
Mr. Rungrueng Wongphanlert is
the Deputy Managing
Director.
He is Thai
nationality with the
age of 43
years old.
Mr. Adisorn
Reawcharakorn is the
Plant Manager.
He is Thai
nationality.
Mr. Bancha
Wongphanlert is the
Purchasing Manager.
He is Thai
nationality.
Mrs. Nongluck
Promvisarnkul is the
Account Manager.
She is Thai
nationality.
Mr. S.P.
Goswami is the
General Manager &
Marketing Manager.
He is Japanese
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer, distributor and exporter
of polyester fibers,
including polyester chips,
staple fibers, POY filament
yarns, drawn textured
yarns and fully
drawn yarns, which
using the technology
from Lurgi Zimmer
from Germany.
PRODUCTION CAPACITY
Staple fiber : Line
1-130 tons/days
Line 2-130
tons/days
POY yarn : 75 tons/days
DTY, FDY yarn : 40
tons/days
Polyester chip :
25 tons/days
Polymerization : 360
tons/days
PURCHASE
60% of raw
materials such as PVC resin
and chemicals including
machinery are imported
from Germany, United
States of America, Italy,
United Kingdom, Japan,
Taiwan & Republic
of China, the
remaining 40% is
purchased from local
suppliers.
MAJOR SUPPLIERS
Tomen Corporation
Ltd.,
Products : Machinery
SALES
Its products are
sold by wholesale
to manufacturers both
local and overseas
customers in Hong Kong,
Indonesia, India, Bangladesh,
Republic of China,
Pakistan, Taiwan, Singapore,
United Kingdom, Italy,
Sweden, Germany and
etc.
MAJOR CUSTOMERS
Kangwal Textile Co.,
Ltd. :
SUBSIDIARIES &
AFFILIATED COMPANIES
Kangwal Textile
Co., Ltd.,
Business Type : Manufacturer &
exporter of textile
Kangwal
Weaving Factory L.P.,
Business Type : Weaving
& spinning factory
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
the credit term
of 90 days.
Exports are against
L/C at sight
or T/T.
BUSINESS TRANSACTION
In term of
sales, the products
are sold by
cash and credit
with the maximum
credit given at
30-60 days. The subject is found to have late payment
from some customers.
BANKING
Kasikornbank Public Co., Ltd.
[Head Office :
Bangkok Bank
Public Co., Ltd.
[Head Office
:
[Khaoyoi Branch : Khaoyoi District,
Petchburi Province]
Krung Thai
Bank Public Co., Ltd.
[Head Office :
EMPLOYMENT
The subject employs
approximately 750 staff.
LOCATION DETAILS
The premise is
owned for administrative office
at the heading
address. Premise is
located in commercial/residential area.
The factory is
located at 88
Moo 2, T.
Nongchumpol, Khaoyoi,
REMARK
CREDIT OF US$ 15,000,000 AGAINST D/A TERMS IS TOO
HIGH TO RECOMMEND
COMMENT
The subject has
tried to strengthen the industry by improving production efficiency, upgrading
technology and manpower, as well as supporting outstanding quality in order to
reach more international markets.
Domestic consumption has
sharply increased during these
two years because
of the quality
that has enabled
the subject to
compete with imported
materials.
FINANCIAL INFORMATION
The capital was
registered at Bht.
1,000,000 divided into
1,000 shares of
Bht. 1,000 each.
The capital was
increased later as
followings :
Bht. 900,000,000 on
December 1, 1995
Bht. 1,200,000,000
on March 27, 1998
Bht. 1,400,000,000
on December 13,
1999
Bht. 1,700,000,000
on October 27,
2000
The latest registered
capital was increased
to Bht. 1,700,000,000 divided
into 170,000,000 shares
of Bht. 10
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE :
[as at
April 30,
2007]
|
NAME |
HOLDING |
% |
|
Mr. Kangwal
Wongphanlert Nationality: Thai Address : |
35,180,000 |
20.70 |
|
Mrs.
Vallapa Wongphanlert Nationality: Thai Address : Pomprab, |
35,180,000 |
20.70 |
|
Mr. Niphan
Wongphanlert Nationality: Thai Address : Pomprab,
|
23,720,000 |
13.95 |
|
Mr. Rungrueng
Wongphanlert Nationality: Thai Address : Pomprab, |
23,720,000 |
13.95 |
|
Kangwal Textile
Co., Ltd. Nationality: Thai Address : 144
Moo 4, Bankong, Photharam,
Ratchburi |
14,200,000 |
8.35 |
|
N.N. Chemical
Corporation Nationality: Japanese Address : 1-23 Shiba
4-Chome Minato-Ku, |
8,500,000 |
5.00 |
|
Tomen Corporation Nationality: Japanese Address : 14-27
Akazaka 2-Chome Minato-Ku, |
8,500,000 |
5.00 |
|
Burapa Textile
Co., Ltd. Nationality: Thai Address : 75
Moo 4,
Krathumban, Samutsakorn |
6,000,000 |
3.53 |
|
Mr. Teera
Puengchittisarn Nationality: Thai Address : 68/1
Sukhumvit 53 Rd.,
Prakanong,
Klongtoey, |
5,500,000 |
3.23 |
|
Mr. Charnvit
Puengchittisarn Nationality: Thai Address : 68/1
Sukhumvit 53 Rd.,
Prakanong,
Klongtoey, |
5,500,000 |
3.23 |
|
TMB Bank
Public Co., Ltd. Nationality: Thai Address : Jatujak, |
4,000,000 |
2.36 |
Total Shareholders
11
NAME OF
AUDITOR & CERTIFIED
PUBLIC
ACCOUNTANT NO.
Mr. Somchai Kuruchitkosol
No. 3277
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2006 &
2005 were:
ASSETS
|
Current Assets |
2006 |
2005 |
|
|
|
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Cash in hand
& at Bank
|
29,392,995.50 |
36,576,167.14 |
|
Trade Accts. &
Notes Receivable |
388,842,353.10 |
408,714,391.21 |
|
Trade Accts. &
Notes Receivable - Related Company |
123,936,720.12 |
126,761,055.68 |
|
Inventories |
582,115,607.35 |
614,195,061.81 |
|
Deferred Discount |
23,517,950.98 |
40,309,440.93 |
|
Receivable - Revenue Department |
35,638,923.93 |
44,163,227.59 |
|
Other Current Assets
|
15,849,958.35 |
20,065,155.04 |
|
Total Current
Assets |
1,199,294,509.33 |
1,290,784,499.40 |
|
Fixed Assets |
3,847,300,454.09 |
4,243,612,746.26 |
|
Other Assets |
1,468,907.48 |
1,534,272.24 |
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Total Assets
|
5,048,063,870.90 |
5,535,931,517.90 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2006 |
2005 |
|
|
|
|
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Bank Overdraft & Loan
from Bank |
185,098,138.89 |
547,720,334.23 |
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Trade Accts. Payable |
78,904,667.65 |
90,866,615.61 |
|
Trade Accts. Payable - Related Company |
861,150,950.46 |
707,259,464.41 |
|
Current Portion of
Long Term Liabilities |
113,702,504.00 |
52,462,300.00 |
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Other Current Liabilities |
64,721,946.63 |
63,214,910.52 |
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Total Current
Liabilities |
1,303,578,207.63 |
1,461,523,624.77 |
|
Long Term Loan |
2,716,798,926.00 |
2,957,289,980.00 |
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Total Liabilities |
4,020,377,133.63 |
4,418,813,604.77 |
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Shareholders'
Equity |
|
|
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Share capital,
Baht 10.00 value
authorized, issued
and fully paid
share capital
170,000,000 shares |
1,700,000,000.00 |
1,700,000,000.00 |
|
Capital Paid |
1,700,000,000.00 |
1,700,000,000.00 |
|
Valuation Surplus |
810,703,463.17 |
900,838,027.67 |
|
Retained Earning - [deficit] |
[1,483,016,725.90] |
[1,483,720,114.54] |
|
Total
Shareholders' Equity |
1,027,686,737.27 |
1,117,117,913.13 |
|
Total
Liabilities & Shareholders' Equity |
5,048,063,870.90 |
5,535,931,517.90 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2006 |
2005 |
|
|
|
|
|
Sales |
5,257,987,674.29 |
4,818,494,956.31 |
|
Other Income |
34,072,129.41 |
29,264,770.39 |
|
Gain on Exchange
Rate |
163,625,902.19 |
- |
|
Total Revenues
|
5,455,685,705.89 |
4,847,759,726.70 |
|
Expenses |
|
|
|
|
|
|
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Cost of Goods
Sold |
5,095,741,283.99 |
4,786,822,498.51 |
|
Selling & Administrative Expenses |
127,541,940.34 |
138,947,962.34 |
|
Loss from Estimation
Liabilities |
13,763,036.76 |
20,924,963.47 |
|
Loss from Exchange
Rate |
- |
51,964,493.57 |
|
Total Expenses |
5,237,046,261.09 |
4,998,659,917.89 |
|
Profit /[Loss] Before Interest
Expenses |
218,639,444.80 |
[150,900,191.19] |
|
Interest Expenses |
[217,936,056.16] |
[193,904,220.61] |
|
Net Profit / [Loss] |
703,388.64 |
[344,804,411.80] |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2006 |
2005 |
|
Net Sales |
9.12 |
|
|
Operating Profit |
[373.01] |
|
|
Net Profit |
100.20 |
|
|
Fixed Assets |
[9.34] |
|
|
Total Assets |
[8.81] |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
96.91 |
99.34 |
|
Operating Profit Margin |
4.42 |
[1.62] |
|
S & A
Expenses |
2.43 |
2.88 |
|
Interest Paid |
4.14 |
4.02 |
|
Other Revenues |
3.76 |
0.61 |
|
Net Profit Margin |
0.01 |
[7.16] |
|
Earning Per Shares |
0.00 |
[2.03] |
|
No. of Shares |
170,000,000 |
170,000,000 |
Net Sales was
increased by 9.12%,
Operating Profit was
decreased by 373.01%,
Net Profit was
increased by 100.20%,
Fixed Assets was
decreased by 9.34%,
Total Assets was
decreased by 8.81%.
Compare each cost
with sales, Cost of
Good Sold was
decreased from 99.34%
to 96.91%, Operating
Profit Margin was increased from
-1.62% to 4.42%,
S & A
Expenses was decreased
from 2.88% to
2.43%, Interest Paid was
increased from 4.02%
to 4.14%, Other
Revenues was increased
from 0.61% to
3.76%, Net Profit
Margin was increased
from -7.16% to
0.01%.
Earning Per Shares
was increased from
-2.03 baht per
share to 0.00
baht per share.
Liquidity
|
Liquidity |
2006 |
2005 |
|
Current Ratio |
0.92 |
0.88 |
|
Quick-Assets Ratio |
0.42 |
0.39 |
Current Ratio was
increased from 0.88
to 0.92, show
Current Assets can
not cover Current
Liabilities, Liquidity Ratio
of the company
was not good,
Quick-Assets Ratio was
increased from 0.39
to 0.42, capacity
to pay Short
Term Loan was
not good too,
because Current Assets
without Inventory can
not cover Current
Liabilities.
Leverage
|
Leverage |
2006 |
2005 |
|
D/E Ratio |
3.91 |
3.96 |
|
Times Interest Earned |
1.07 |
[0.40] |
D/E Ratio was
decreased from 3.96
to 3.91, show
the company had
fund from Loan
more than fund
from Equity, investment
risked of the
company is high,
Times Interest Earned
was increased from
-0.40 to 1.07,
capacity to pay
interest paid was
good.
Efficiency
|
Efficiency |
2006 |
2005 |
|
Fixed Assets Turnover |
1.37 |
1.14 |
|
Total Assets Turnover |
1.04 |
0.87 |
|
Return on Assets |
0.01 |
[6.23] |
|
Return on Equity |
0.07 |
[30.87] |
|
Day's Payable |
5.40 |
6.79 |
|
Day’s Inventories |
39.86 |
45.89 |
|
Day’s Receivables |
26.62 |
30.54 |
Fixed Assets Turnover
was increased from
1.14 times to
1.37 times, Total
Assets Turnover was increased from
0.87 times to
1.04 times, show
the company could
use Assets so
efficiently, Return on
Assets was increased
from -6.23 to
0.01, Return on
Equity was increased
from -30.87 to
0.07, capacity to
use Assets to
make profit was
good.
Day's Payable was
decreased from 7
days to 6
days, Day’s Inventories
was decreased from
46 days to
40 days, and
Day’s Receivables was
decreased from 31
days to 27
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%)