MIRA
INFORM REPORT
|
Report Date : |
04.04.2008 |
IDENTIFICATION
DETAILS
|
Name : |
VALQUA
INDUSTRIES [THAILAND] LTD. |
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Registered Office : |
538 Moo 4,
Bangpoo Industrial Estate, Pattana 2 Road, Praeksa,
Muang, Samutprakarn
Province 10280 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
19.07.1988 |
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Com. Reg. No.: |
0105531053729 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Distributor and
Exporter of Industrial Gasket |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 : |
No Complaints |
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Litigation : |
Clear |
name of the company
VALQUA
INDUSTRIES [THAILAND] LTD.
SUMMARY
BUSINESS
ADDRESS : 538
MOO 4, BANGPOO INDUSTRIAL ESTATE,
PATTANA 2
ROAD, PRAEKSA, MUANG,
SAMUTPRAKARN PROVINCE
10280
TELEPHONE : [66] 2324-0400-1, 2709-4293-4
FAX : [66] 2324-0787
E-MAIL
ADDRESS : t-wilai@valqua.th.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1988
REGISTRATION NO. : 0105531053729
CAPITAL REGISTERED : BHT. 104,845,800
CAPITAL PAID-UP : BHT. 104,845,800
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR. KAZUYA UEDA, JAPANESE
MANAGING DIRECTOR
NO.
OF STAFF : 120
LINES
OF BUSINESS : INDUSTRIAL GASKET
MANUFACTURER, DISTRIBUTOR
AND 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 July 19,
1988 as a
private limited company
under the name style VALQUA INDUSTRIES
[THAILAND] LTD., by
Thai and Japanese groups, with the business objective
to manufacture and
distribute industrial gasket
both domestic and
overseas. It currently
employs approximately 120 staff.
Subject is a
subsidiary of Nippon
Valqua Industries Ltd.,
Japan.
The
subject received the
promotion privilege from the
Board of Investment
[BOI] on November
23, 2004.
The subject’s registered address
is 538 Moo 4, Pattana
2 Rd., Praeksa, Muang,
Samutprakarn 10280, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
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Mr. Kiyoto Watabe |
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Japanese |
54 |
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Mr. Narong Pong-atcha |
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Thai |
72 |
|
Mr. Kazuya Ueda |
|
Japanese |
43 |
|
Mr. Masaaki Kumada |
|
Japanese |
63 |
AUTHORIZED PERSON
One of the above directors
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Kazuya Ueda
is the Managing Director.
He is Japanese nationality with
the age of
43 years old.
Ms. Wilai Thong-oa
is the Factory Manager.
She is Thai nationality.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing, distributing and
exporting of industrial
gaskets such as
ring joint gasket,
soft gasket and
etc., under customers’
requirement.
PURCHASE
Raw materials, such
as steel sheet,
aluminum sheet and
etc are purchased
from suppliers and
agents both domestic
and overseas, mainly
in Japan, Singapore,
Republic of China
and Germany.
SALES
80% of the products is
exported to Japan,
Singapore, Malaysia, Taiwan
and India, the
remaining 20% is
sold locally.
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
T/T.
BANKING
Siam City Bank
Public Co., Ltd.
Sumitomo Mitsui Banking
Corporation
EMPLOYMENT
The
subject employs approximately 120 staff.
LOCATION DETAILS
The
premise is owned
for administrative office and
factory at the
heading address. Premise
is located in
industrial area.
COMMENT
The
subject has been
enjoying its outstanding
business. Its growth
is still strong
from demand in
industrial sector.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 35,000,000 divided
into 350,000 shares
of Bht. 100
each.
The
capital was increased
later as following:
Bht. 70,000,000 on August 6,
1997
Bht. 104,545,800 on March 26,
2004
Bht. 104,845,800 on December 24,
2004
The
latest registered capital
was increased to Bht. 104,845,800 divided into 1,048,458 shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS LISTED WERE
: [as at March 26,
2007]
|
NAME |
HOLDING |
% |
|
|
|
|
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Nippon Valqua
Industries Ltd. Nationality: Japanese Address : 1-1 Nishichinjuku 2-Chome
Chinjuku-ku, Tokyo, Japan |
989,344 |
94.36 |
|
Krung Thai
Equipment Co., Ltd. Nationality: Thai Address : 1622
Krungsasem Rd., Pomprab,
Bangkok |
45,456 |
4.33 |
|
Mecpack Engineering [S] Pte. Ltd. Nationality: Singaporean Address : 101
Boondeng Rd., Singapore |
5,327 |
0.51 |
|
MTC Trading
Co., Ltd. Nationality: Filipino Address : Manila,
Philippines |
5,327 |
0.51 |
|
Ida Packing
Company Limited Nationality: Japanese Address : 5-4-16
Honanjo-Minami,
Toyonaka-City, Osaka, Japan |
3,001 |
0.29 |
|
Mr. Narong Pong-atcha Nationality: Thai Address : 111
Pattanakarn Rd., Huamark,
Bangkapi, Bangkok |
2 |
- |
|
Mr. Keniji Kobayashi Nationality: Thai Address : 538
Moo 4, Pattana
2 Rd., Praeksa,
Muang, Samutprakarn |
1 |
- |
Total Shareholders : 7
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mr. Likit Sirirojsophon No. 5678
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2006 &
2005 were:
ASSETS
|
Current Assets |
2006 |
2005 |
|
|
|
|
|
Cash in hand
& at Bank
|
19,895,229.59 |
15,046,549.73 |
|
Trade Accts. Receivable |
21,459,960.55 |
28,554,775.92 |
|
Trade Accts.
Receivable-Related company |
22,359,039.11 |
40,894,606.04 |
|
Inventories |
29,352,918.29 |
40,944,802.24 |
|
Revenue Department Receivable |
3,510,746.98 |
3,193,491.99 |
|
Deferred Refundable Custom
Duty |
18,368,036.50 |
13,103,890.39 |
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Other Current Assets
|
1,231,032.80 |
1,112,560.22 |
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Total Current
Assets |
116,176,963.82 |
142,850,676.53 |
|
Long Term Investment |
1,502,467.66 |
1,254,558.53 |
|
Fixed Assets |
40,108,768.66 |
47,983,736.45 |
|
Deferred Income Tax |
13,245,426.29 |
167,789.33 |
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Other Assets |
853,651.28 |
186,000.00 |
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Total Assets |
171,887,277.71 |
192,442,760.84 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2006 |
2005 |
|
|
|
|
|
Loan from Financial
Institute |
12,600,000.00 |
- |
|
Trade Accts. Payable |
39,760,638.75 |
47,733,758.17 |
|
Trade Accts. Payable-Related company |
5,845,672.43 |
5,525,468.40 |
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Loan from Related
Company |
100,000,000.00 |
100,000,000.00 |
|
Accrued Income Tax |
- |
653,004.34 |
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Accrued Expenses-Related company |
20,856,420.18 |
19,146,363.07 |
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Other Current Liabilities |
5,685,433.27 |
2,302,472.21 |
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Total Current
Liabilities |
184,748,164.63 |
175,361,066.19 |
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Total Liabilities |
184,748,164.63 |
175,361,066.19 |
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Shareholders'
Equity |
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Share capital : Baht 100 par value
authorized, issued
and fully paid share
capital 1,048,458 shares |
104,845,800.00 |
104,845,800.00 |
|
Capital Paid |
72,373,950.00 |
72,373,950.00 |
|
Retained Earning -
Unappropriated |
[85,234,836.92] |
[55,292,255.35] |
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Total
Shareholders' Equity |
[12,860,886.92] |
17,081,694.65 |
|
Total
Liabilities & Shareholders' Equity |
171,887,277.71 |
192,442,760.84 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2006 |
2005 |
|
|
|
|
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Sales |
382,355,902.88 |
330,972,328.15 |
|
Other Income |
2,381,105.16 |
2,689,088.32 |
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Total Revenues
|
384,737,008.04 |
333,661,416.47 |
|
Expenses |
|
|
|
|
|
|
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Cost of Goods
Sold |
348,072,056.14 |
276,509,862.40 |
|
Selling & Administrative Expenses |
41,452,057.55 |
31,527,728.80 |
|
Loss on Sales of
Assets |
9,424,990.85 |
- |
|
Loss on Exchange
Rate |
5,604,664.29 |
2,168,907.53 |
|
Copy Right |
16,123,969.00 |
14,837,020.00 |
|
Total Expenses |
420,677,737.83 |
325,043,518.73 |
|
Profit / [Loss] Before Interest
Expenses & Income Tax |
[35,940,729.79] |
8,617,897.74 |
|
Interest Expenses |
[7,079,488.74] |
[5,593,017.47] |
|
Income Tax |
[13,077,636.96] |
[886,879.17] |
|
Net Profit / [Loss] |
[29,942,581.57] |
2,138,001.10 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2006 |
2005 |
|
Net Sales |
15.53 |
|
|
Operating Profit |
[116.17] |
|
|
Net Profit |
[1,500.49] |
|
|
Fixed Assets |
[16.41] |
|
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Total Assets |
[10.68] |
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Profitability |
|
|
|
Cost of Good
Sold |
91.03 |
83.54 |
|
Operating Profit Margin |
[1.25] |
7.74 |
|
S & A
Expenses |
10.84 |
9.53 |
|
Interest Paid |
1.85 |
1.69 |
|
Other Revenues |
0.62 |
0.81 |
|
Net Profit Margin |
[7.83] |
0.65 |
|
Earning Per Shares |
[41.37] |
2.95 |
|
No. of Shares |
723,739 |
723,739 |
Net Sales was
increased by 15.53%,
Operating Profit was
decreased by 116.17%,
Net Profit was
decreased by 1,500.49%,
Fixed Assets was
decreased by 16.41%,
Total Assets was
decreased by 10.68%.
Compare each cost
with sales, Cost of
Good Sold was
increased from 83.54%
to 91.03%, Operating
Profit Margin was
decreased from 7.74%
to -1.25%, S
& A Expenses
was increased from
9.53% to 10.84%,
Interest Paid was increased
from 1.69% to
1.85%, Other Revenues
was decreased from
0.81% to 0.62%,
Net Profit Margin
was decreased from
0.65% to -7.83%.
Earning Per Shares
was decreased from
2.95 baht per
share to -41.37 baht
per share.
Liquidity
|
Liquidity |
2006 |
2005 |
|
Current Ratio |
0.63 |
0.81 |
|
Quick-Assets Ratio |
0.34 |
0.48 |
Current Ratio was
decreased from 0.81
to 0.63, show
Current Assets can
not cover Current
Liabilities, Liquidity Ratio
of the company was not
good, Quick-Assets Ratio
was decreased from
0.48 to 0.34,
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 |
[14.37] |
10.27 |
|
Times Interest Earned |
[0.68] |
4.58 |
D/E Ratio was
decreased from 10.27
to -14.37, show
the company had
fund from Loan
more than fund
from Equity, investment
risked of the
company is high,
Times Interest Earned
was decreased from
4.58 to -0.68,
capacity to pay
interest paid was
not good.
Efficiency
|
Efficiency |
2006 |
2005 |
|
Fixed Assets Turnover |
9.53 |
6.90 |
|
Total Assets Turnover |
2.22 |
1.72 |
|
Return on Assets |
[17.42] |
1.11 |
|
Return on Equity |
[232.82] |
12.52 |
|
Day's Payable |
37.44 |
51.92 |
|
Day’s Inventories |
27.64 |
44.54 |
|
Day’s Receivables |
20.21 |
31.06 |
Fixed Assets Turnover
was increased from
6.90 times to
9.53 times, Total
Assets Turnover was increased from
1.72 times to
2.22 times, show
the company could
use Assets so
efficiently, Return on
Assets was decreased
from 1.11 to
-17.42, Return on
Equity was decreased
from 12.52 to
-232.82, capacity to
use Assets to
make profit was
not good.
Day's Payable was
decreased from 52
days to 38
days, Day’s Inventories
was decreased from
45 days to
28 days, and
Day’s Receivables was
decreased from 32
days to 21
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%)