MIRA
INFORM REPORT
|
Report Date : |
04.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
N.T.S. STEEL
GROUP PUBLIC COMPANY
LIMITED |
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Registered Office : |
22nd Floor, Shinawatra 3
Building, 1010 Vibhavadee
Rangsit Road, Jatujak, Bangkok 10900 |
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Country : |
Thailand |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
04.10.1988 |
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Com. Reg. No.: |
0107536001273 |
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Legal Form : |
Public Limited Company |
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Line of Business : |
Manufacturer and Distributor of Round and Deformed
Bars and Wire
Rod |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
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
N.T.S. STEEL
GROUP PUBLIC COMPANY
LIMITED
SUMMARY
BUSINESS ADDRESS : 22nd FLOOR, SHINAWATRA 3
BUILDING,
1010 VIBHAVADEE RANGSIT
ROAD,
JATUJAK,
BANGKOK 10900, THAILAND
TELEPHONE : [66] 2949-2949
FAX : [66] 2949-2889
E-MAIL ADDRESS : nts@cementhai.co.th
REGISTRATION ADDRESS : SAME
AS THE BUSINESS ADDRESS
ESTABLISHED : 1988
REGISTRATION NO. : 0107536001273 [ Former : BOR.MOR.JOR.201]
CAPITAL REGISTERED : BHT. 4,628,010,864
CAPITAL PAID - UP : BHT. 3,253,398,864
FISCAL YEAR
CLOSING DATE : MARCH 31
LEGAL STATUS : PUBLIC LIMITED COMPANY
EXECUTIVE : MR.
VISUTH ANUPHANMETHA, THAI
MANAGING DIRECTOR
NO. OF
STAFF : 390
LINES OF
BUSINESS : ROUND
AND DEFORMED BARS AND WIRE ROD MANUFACTURER AND
DISTRIBUTOR
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD
FOR NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The
subject was established
on October 4,
1988 as a
private limited company.
On
July 13, 1990
the subject was
granted promotion privilege
from the Board
of Investment for
7 years after starting
production of steel
products.
The
subject was listed
on the Stock Exchange of
Thailand on December
4, 1992 and
finally converted its
status into a
public limited company
on October 22,
1993. However, it
was revoked the
name from the
Stock Exchange of
Thailand in 2002.
In
October 1993, the
subject was seriously
affected by the
economic crisis within
the nation in
the year 1997
and subsequently underwent
the debt restructuring under the Corporate
Debt Restructuring Advisory
Committee and the
business reorganization under
the Central Bankruptcy
Court on October
2, 2000. Later,
with respect to
the approval of
the creditors of
NTS and the
order of Central
Bankruptcy Court dated
July 19, 2002,
the steel business
merger between NTS
and the other
2 companies of
Siam Cement group,
namely “The Siam
Iron and Steel
[2001] Ltd.” and
“The Siam Construction Steel Co., Ltd.”
was initiated, and
set up the new company
under the name “Millenium Steel Public Co.,
Ltd.”, in order
to invest in
the 3 companies. In December
2006, it was
changed the name
to “Tata Steel
[Thailand] Public Co.,
Ltd.
It
has achieved the
9001:2000 certificate for
the products quality
management in 2004.
After
the subject was
stopped its production
activity temporarily in
2000, it was re-started the activities again
in January 2003.
It currently employs
approximately 390 staff.
The
subject’s registered address
is 1010 Shinawatra
3 Bldg., Vibhavadee
Rangsit Rd., Jatujak,
Bangkok 10900, and
this is the
company’s current operation address.
THE BOARD OF DIRECTORS
Name Nationality Age
Mr. Santi
Charnkolravee Thai 58
Mr. Udom
Siripanich Thai 58
Mr. Larptawee Senawongse Thai 51
Mr. Visuth
Anuphanmetha Thai 53
Mr. Athitaya Roy Shoudhuri
Indian 44
AUTHORIZED PERSON
Two
of the above directors can
jointly sign on
behalf of the
subject with the
company’s affixed.
MANAGEMENT
Mr. Visuth
Anuphanmetha is the
Managing Director.
He
is Thai nationality
with the age
of 53 years old.
BUSINESS OPERATIONS
The
subject’s activity is
a manufacturer of
steel rebars and
wire rods with
the production capacity
of 800,000 tons
per annum.
PURCHASE [LOCAL]
100%
of raw material is purchased
by Tata Steel
[Thailand] Public Co., Ltd.,
the parent company.
SALES [LOCAL]
100%
of its products is sold
locally by Tata
Steel [Thailand] Public
Co., Ltd.
PARENT COMPANY
Tata
Steel [Thailand] Public
Co., Ltd.
Business
Type : Holding company
Address : 1010 Vibhavadee
Rangsit Rd., Jatujak,
Bangkok 10900.
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
Purchasing
terms are on
the credits of
30-90 days.
Selling
terms are on the credits
of 30-60 days.
BANKING
Kasikornbank Public Co., Ltd.
Head
Office : 1
Kasikorn Lane, Ratchaburana Rd.,
Ratchaburana, Bangkok]
Krung
Thai Bank Public
Co., Ltd.
[Head
Office : 35
Sukhumvit Rd., Klongtoeynua, Wattana, Bangkok]
Bangkok
Bank Public Co.,
Ltd. :
[Head
Office : 333
Silom Rd., Silom,
Bangrak, Bangkok]
Siam
City Bank Public
Co., Ltd.
[Head
Office : 1101
Petchaburi Rd., Makkasan,
Rajthevee, Bangkok]
EMPLOYMENT
The subject employs approximately 390 office staff
and factory workers.
LOCATION DETAILS
The
premise is rented
for operating an
office at the
heading address in
commercial/ residential area.
Factory
and Warehouse are
located at 351
High Way No.
331, Chonburi Industrial
Estate [Bo Win], Sriracha,
Chonburi 20230. Tel : [66]
38 345-355-9, Fax : [66] 38
345-350
COMMENT
The
subject is a subsidiary of Tata Steel (Thailand) who is the
biggest steel marker
in Thailand at
Bo Win, Chonburi province.
The principle activity
is the manufacturing and
distributing of round and deformed bars and wire
rod for use
in steel, reinforced
concrete for construction industry.
The
volatile prices earlier
this year led
to delays to
some construction projects
as it was hard to
cope with the
spike down by
almost 50% . However,
it is forecasted that steel
demand would grow
3-4% next year, up
from 1-2% this
year. The steel
sector was riding
the downturn in
line with the
global trend and
the influx of
supplies released by speculators
and commodity traders.
Nevertheless, subject still retains
its strong positive
outlook due to
its business has
continued growing strong
despite overall economic
sluggish.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 10
million, divided into
100,000 shares of Bht.
100 each.
The
capital was increased
later as followings:
Bht. 1,000
million in April,
1990
Bht. 1,850
million in February , 1992
Bht. 2,115
million in October , 1992
Bht. 3,000
million in October,
1993
The
latest registered capital
is at Bht. 4,628,010,864
divided into 3,856,675,720 shares of Bht. 1.20
each with current
capital paid-up of
Bht. 3,253,398,864.
MAIN SHAREHOLDERS
[as at July
28, 2008] at
Bht. 27,111,657,200 of
capitalization.
|
Company |
No. of Shares |
% |
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|
|
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Tata Steel [Thailand] Public Co., Ltd. Nationality: Thai Address : 1010
Vibhavadee Rangsit Rd.,
Jatujak, Bangkok |
1,913,692,212 |
70.58 |
|
Mr. Sawas Horrungruang Nationality: Thai Address : 9
Ramkhamhaeng Rd., Suanluang, Bangkok |
1,667,000 |
0.06 |
|
Ms. Siriporn Horrungruang Nationality: Thai Address : 351/1
Silom Rd., Silom,
Bangrak, Bangkok |
1,000,000 |
0.04 |
|
Ms. Orn-anong Suriyapanumas Nationality: Thai Address : 37/4
Arun Amarin Rd.,
Bangkoknoi, Bangkok |
1,000,000 |
0.04 |
|
Mr. Sunthorn Chaylaemlak Nationality: Thai Address : 245/66
Klongbangkokyai Rd., Pasicharoen, Bangkok |
1,000,000 |
0.04 |
|
Mr. Sawai Horrungruang Nationality: Thai Address : 114/3
Moo 1, Laemfapha, Muang |
1,000,000 |
0.04 |
|
Gamma Capital Mutual
Fund Nationality: Thai Address : Silom
Rd., Silom, Bangrak,
Bangkok |
897,800 |
0.03 |
|
|
|
|
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Ms. Suwanna Luangtrakulchai Nationality: Thai Address : 500
Ploenchit Rd., Lumpini,
Pathumwan, Bangkok |
150,400 |
0.01 |
|
Others |
790,758,308 |
29.16 |
Total shareholders :
839
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mr. Pisith Chewaruengroj No. 2803
BALANCE SHEET [BAHT]
The
latest financial figures
published for March
31, 2008 & 2007
were:
ASSETS
[Thousand Baht]
|
Current Assets |
2008 |
2007 |
|
|
|
|
|
Cash in hand
& at Bank
|
156,791 |
1,258 |
|
Trade Accts. Receivable - Related company |
307,416 |
621,914 |
|
- Other company |
971,646 |
695,258 |
|
Receivable-Related Company |
27,553 |
530 |
|
Inventories |
2,052,171 |
1,964,896 |
|
Other Current Assets
|
11,403 |
456,75 |
|
Total Current Assets
|
3,526,980 |
3,329,531 |
|
|
|
|
|
Fixed Assets |
7,033,729 |
7,101,099 |
|
Deferred Income Tax |
34,738 |
4,823 |
|
Other Assets |
29,975 |
40,238 |
|
Total Assets |
10,625,422 |
10,475,691 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
[Thousand Baht]
|
Current
Liabilities |
2008 |
2007 |
|
|
|
|
|
Short-term Loan from Financial
Institution |
127,349 |
4,246 |
|
Trade Accts. Payable |
|
|
|
- Related company |
291,011 |
560,568 |
|
- Other company |
234,134 |
240,619 |
|
Payable-Related Company |
24,198 |
13,359 |
|
Short-term Loan from Related
Company |
2,022,000 |
2,881,000 |
|
Current Portion of Payable Lease under Financial Institution Contract |
54 |
- |
|
Accrued Income Tax |
174,905 |
- |
|
Other Current Liabilities |
159,799 |
154,242 |
|
Total Current Liabilities |
3,033,450 |
3,854,034 |
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|
|
|
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Long-term Loan from Related
Company |
3,151,309 |
2,900,000 |
|
Payable Lease under Financial
Institution Contract, Net
of Current Portion |
101 |
- |
|
Debt Re-structure Liabilities |
186,903 |
186,929 |
|
Estimation Liabilities |
17,334 |
16,076 |
|
Total Liabilities |
6,389,097 |
6,957,039 |
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|
|
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Shareholders' Equity |
|
|
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Share capital : Baht 1.20 par value
authorized, issued
and fully paid share
capital 788,300,000 shares |
945,960 |
945,960 |
|
Share capital : Baht 1.20 par value
authorized, issued
and fully paid share
capital 3,068,375,720 shares |
3,682,051 |
3,682,051 |
|
Capital Paid |
3,253,399 |
3,253,399 |
|
Translation Adjustment |
2,700 |
3,000 |
|
Revaluation Surplus |
68,968 |
74,413 |
|
Copyright |
57,275 |
57,275 |
|
Statutory Reserve |
42,699 |
6,528 |
|
Retained Earning -
Unappropriated |
811,284 |
124,037 |
|
Total Shareholders' Equity |
4,236,325 |
3,518,652 |
|
Total Liabilities & Shareholders' Equity |
10,625,422 |
10,475,691 |
PROFIT & LOSS ACCOUNT
[Thousand Baht]
|
Revenue |
2008 |
Jan. 1,
2007- March 31, 2007 |
|
|
|
|
|
Sales |
16,440,400 |
3,309,607 |
|
Gain on Exchange Rate |
14,916 |
- |
|
Other Income |
16,582 |
3,377 |
|
Total Revenues |
16,471,898 |
3,312,984 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
14,921,639 |
3,088,170 |
|
Selling & Administrative Expenses |
360,241 |
58,504 |
|
Loss from Exchange
Rate |
- |
2,472 |
|
Total Expenses |
15,281,880 |
3,149,146 |
|
Profit / [Loss] Before Interest
Expenses |
1,190,018 |
163,838 |
|
Interest Expenses |
[309,380] |
[84,361] |
|
Income Tax |
[157,220] |
[371] |
|
Net Profit / [Loss] |
723,418 |
79,848 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2008 |
2007 |
|
Net Sales |
396.75 |
|
|
Operating Profit |
44.05 |
|
|
Net Profit |
805.99 |
|
|
Fixed Assets |
[0.95] |
|
|
Total Assets |
1.43 |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
90.76 |
93.31 |
|
Operating Profit Margin |
7.24 |
5.03 |
|
S & A
Expenses |
2.19 |
1.77 |
|
Interest Paid |
1.88 |
2.55 |
|
Other Revenues |
0.19 |
0.10 |
|
Net Profit Margin |
4.40 |
2.41 |
|
Earning Per Shares |
0.27 |
0.03 |
|
No. of Shares |
2,711,165,833 |
2,711,165,833 |
Net Sales was
increased by 396.75%,
Operating Profit was
increased by 44.05%,
Net Profit was
increased by 805.99%, Fixed Assets was
decreased by 0.95%,
Total Assets was
increased by 1.43%.
Compare each cost
with sales, Cost of
Good Sold was
decreased from 93.31%
to 90.76%, Operating
Profit Margin was
increased from 5.03%
to 7.24%, S
& A Expenses
was increased from
1.77% to 2.19%,
Interest Paid was decreased
from 2.55% to
1.88%, Other Revenues
was increased from
0.10% to 0.19%,
Net Profit Margin
was increased from
2.41% to 4.40%.
Earning Per Shares
was increased from
0.03 baht per
share to 0.27
baht per share.
Liquidity
|
Liquidity |
2008 |
2007 |
|
Current Ratio |
1.16 |
0.86 |
|
Quick-Assets Ratio |
0.48 |
0.34 |
Current Ratio was increased from
0.86 to 1.16,
show Current Assets
can cover Current
Liabilities, Liquidity Ratio
of the company was good,
Quick-Assets Ratio was
increased from 0.34
to 0.48, capacity
to pay Short Term Loan
was not good,
because Current Assets
without Inventory can
not cover Current
Liabilities.
Leverage
|
Leverage |
2008 |
2007 |
|
D/E Ratio |
1.51 |
1.98 |
|
Times Interest Earned |
3.85 |
1.97 |
D/E Ratio was
decreased from 1.98
to 1.51, show
the company had
fund from Loan
more than fund
from Equity, investment
risked of the
company is medium,
Times Interest Earned
was increased from
1.97 to 3.85,
capacity to pay
interest paid was
good.
Efficiency
|
Efficiency |
2008 |
2007 |
|
Fixed Assets Turnover |
2.34 |
0.47 |
|
Total Assets Turnover |
1.55 |
0.32 |
|
Return on Assets |
6.81 |
0.76 |
|
Return on Equity |
17.08 |
2.27 |
|
Day's Payable |
5.13 |
26.17 |
|
Day’s Inventories |
44.94 |
213.73 |
|
Day’s Receivables |
21.28 |
75.63 |
Fixed Assets Turnover
was increased from
0.47 times to
2.34 times, Total
Assets Turnover was
increased from 0.32
times to 1.55
times, show the
company could use
Assets so efficiently, Return on Assets
was increased from
0.76 to 6.81,
Return on Equity
was increased from
2.27 to 17.08,
capacity to use
Assets to make
profit was so
good,
Day's Payable was
decreased from 27
days to 6
days, Day’s Inventories
was decreased from
214 days to
45 days, and
Day’s Receivables was
decreased from 76
days to 22
days.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.62 |
|
UK Pound |
1 |
Rs.76.71 |
|
Euro |
1 |
Rs.61.30 |
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%)