MIRA
INFORM REPORT
|
Report Date : |
14.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
INDORAMA
PETROCHEM LTD. |
|
|
|
|
Registered Office : |
35th Floor, Ocean
Tower, 75/93 Soi
Wattana, Sukhumvit 19 Road,
Klongtoeynua, Wattana, Bangkok
10110 |
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|
|
|
Country : |
Thailand |
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|
|
|
Financials (as on) : |
31.12.2007 |
|
|
|
|
Date of Incorporation : |
19.05. 2003 |
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|
|
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Com. Reg. No.: |
0105546057211 |
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|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor and
Exporter of Purified
Terephthalic Acid |
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 : |
No Complaints |
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|
|
|
Litigation : |
Clear |
name of the company
INDORAMA PETROCHEM
LTD.
SUMMARY
BUSINESS ADDRESS : 35th FLOOR,
OCEAN TOWER, 75/93
SOI WATTANA,
SUKHUMVIT 19
ROAD, KLONGTOEYNUA,
WATTANA, BANGKOK
10110
TELEPHONE : [66]
2661-6658
FAX : [66] 2661-6664,
2661-7524
E-MAIL ADDRESS : irpl@indorama.net
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2003
REGISTRATION NO.
: 0105546057211 [Former : 10654600697]
CAPITAL REGISTERED
: BHT. 4,727,820,420
CAPITAL PAID-UP
: BHT. 4,727,820,420
FISCAL YEAR
CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR. AMIT LOHIA, INDIAN
MANAGING DIRECTOR
NO. OF
STAFF : 193
LINES OF
BUSINESS : PURIFIED TEREPHTHALIC ACID
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 May 19, 2003 as
a private limited
company under the name
style INDORAMA PETROCHEM
LTD., by foreign groups,
with the business objective to manufacture
Purified Terephthalic Acid
products for domestic
and export markets.
It currently employs
193 staff.
It
is a subsidiary of Indorama
International Finance Plc.,
England.
Indorama
Group is the
world-class enterprise competing
on an international
playing field, has
strong presence in
polyesters and textiles
for last more
than three decades,
which use petrochemicals as raw materials. Since
2002, the group
has started backward
integration by entering
into petrochemicals: successfully started one of
largest PTA plant
at Thailand in
March 2006.
On
May 4, 2007, subject was
achieved the ISO
9001:2000 certificate.
The
subject’s registered address
was initially at
36/81 Sukhumvit 21
Rd., Klongtoeynua, Wattana,
Bangkok 10110.
In
October 2008, subject’s
registered address was
relocated to 75/93
Ocean Tower, Sukhumvit
19 Rd., Klongtoeynua, Wattana, Bangkok 10110, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sathaporn Kawitanont :
Chairman |
|
Thai |
68 |
|
Mr. Sriprakash Lohia |
[x] |
Indonesian |
56 |
|
Mr. Amit Lohia |
[x] |
Indian |
34 |
|
Mr. Bernd Tummers |
|
German |
61 |
|
Mr. Anurag Aggarwal |
[x] |
Indian |
47 |
|
Mr. Prem Chandra Gupta |
[x] |
Indian |
57 |
AUTHORIZED PERSON
One of the
mentioned directors [x] can sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Amit Lohia is
the Managing Director.
He is Indian nationality with
the age of
34 years old.
Mr. Bernd Tummers is
the Executive Director.
He is German nationality with
the age of
61 years old.
Mr. V.S. Bapna is the
Executive Director.
He is Indian nationality.
Mr. Bernd Tummers is
the Executive Director.
He is German nationality with
the age of
61 years old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing and marketing of
Purified Terephthalic Acid
products, which is
a major raw
material in the
manufacture of Polyester
Polymer, with the
production capacity of
700,000 metric tons
per annum.
PURCHASE
Most of raw
materials are purchased
from local suppliers,
and the remaining
as well as
machinery are imported
from Indonesia, United
Kingdom and Germany.
SALES
70% of the products is
sold locally by
wholesale to dealers
and manufacturers, and
the remaining 30%
is exported to
Indonesia, United Kingdom,
Germany and United States of America.
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
L/C at sight or T/T.
BANKING
Krung Thai Bank
Public Co., Ltd.
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs 193
staff.
LOCATION DETAILS
The premise is
rented for administrative office at the
heading address. Premise
is located in
a prime commercial
area.
Factory
and warehouse are
located at 4
Moo 2, T. Banchang, A. Banchang, Rayong
province 21130.
REMARK
CREDIT
OF DA US$ 5,000,000 SHOULD
BE IN ORDER.
COMMENT
The subject
was set-up as
one of the world largest
plants of Purified
Terephthalic Acid in
Asia Industrial Estate, petrochemical hub of Rayong
province in Thailand. The
commercial production started
in March 2006.
The plant has operational capacity of 700,000 MT
per annum, subscribes Dupont
(formerly Invista) technology
in the manufacturing
process. The plant
is one of the single
largest trains for
the production of
PTA until today.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 100,000 divided
into 10,000 shares
of Bht. 10
each.
The
capital was increased
later as following:
Bht. 600,000,000 on January 22,
2004
Bht. 4,712,000,000 on April 12,
2004
Bht. 4,727,820,420 on November 4,
2005
The
latest registered capital
was increased to
Bht. 4,727,820,420 divided
into 472,782,042 shares
of Bht. 10
each with fully
paid.
T
THE SHAREHOLDERS LISTED WERE
[as
at April 28,
2008]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Indorama International Finance
Plc. Nationality: British Address : 22
Bentric Rd., W I U 2,
EY. London, England |
389,194,171 |
82.32 |
|
DEG-Deutsche
Investitions-Und Entwicklungsgeseltschaft MBH Nationality: German Address : Cologne,
Germany |
53,471,157 |
11.31 |
|
Nederlandse
Financlerings-Maatschappij
Voor Ontwikkalingslanden N.V. Nationality: Dutch Address : Netherlands |
30,116,708 |
6.37 |
|
Mr. Sriprakash Lohia Nationality: Indonesian Address : Jakarta,
Indonesia |
1 |
- |
|
Mr. Amit Lohia Nationality: Indian Address : Jakarta,
Indonesia |
1 |
- |
|
Mrs. Zema Lohia Nationality: Indian Address : Jakarta,
Indonesia |
1 |
- |
|
Mrs. Adi Lohia Nationality: Indian Address : Jakarta,
Indonesia |
1 |
- |
|
Mrs. Shruti Lohia Nationality: Indian Address : Jakarta,
Indonesia |
1 |
- |
|
Mr. Chrishan Kuma Agrawal Nationality: Indian Address : Jakarta,
Indonesia |
1 |
- |
Total Shareholders :
9
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Mr. Chayapol Supasetthanond No. 3972
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2007 & 2006 were:
ASSETS
|
Current Assets |
2007 |
2006 |
|
|
|
|
|
Cash in Hand
& at Bank |
284,406,134 |
1,345,900 |
|
Trade Accts. Receivable Related Company |
507,707,024 |
875,255,875 |
|
Other Company |
1,494,330,476 |
1,308,809,872 |
|
Inventories |
1,549,791,162 |
1,689,208,822 |
|
Prepayment for Goods |
- |
23,881,836 |
|
Refundable Value Added
Tax |
207,396,855 |
558,549,678 |
|
Raw Material Compensation Receivable |
29,047,796 |
50,481,500 |
|
Other Current Assets
|
52,299,328 |
50,415,701 |
|
|
|
|
|
Total Current Assets
|
4,124,978,775 |
4,557,949,184 |
|
Fixed Assets |
13,987,490,275 |
14,413,198,364 |
|
Other Assets |
9,082,666 |
8,809,666 |
|
Total Assets |
18,121,551,716 |
18,979,957,214 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2007 |
2006 |
|
|
|
|
|
Short-term Loan from Bank |
2,615,433,943 |
2,599,335,910 |
|
Trade Accts. Payable |
1,613,300,300 |
1,880,458,931 |
|
Other Payable |
308,721,757 |
332,264,615 |
|
Advance from Goods |
64,752,710 |
- |
|
Current Portion of Finance
Lease Contract &
Hire-purchase Contract
Liabilities |
3,039,895 |
5,366,246 |
|
Current Portion of
Long-term Loan |
290,326,680 |
- |
|
Land Payable |
- |
38,000,000 |
|
Accrued Interest |
56,322,903 |
39,918,187 |
|
Accrued Expenses |
434,727 |
413,980 |
|
Other Current Liabilities |
4,471,625 |
4,409,726 |
|
|
|
|
|
Total Current Liabilities |
4,956,804,540 |
4,900,167,595 |
|
Finance Lease Contract
& Hire-purchase Contract Liabilities - Net of
Current Portion |
2,454,180 |
2,995,202 |
|
Long-term Loan -
Net of Current
Portion |
7,842,073,320 |
8,695,392,000 |
|
Long-term Loan from
Related Company |
847,125,000 |
543,462,000 |
|
Total Liabilities |
13,648,457,040 |
14,142,016,797 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 10 par value
authorized, issued
and fully paid share
capital 472,782,042 shares |
4,727,820,420 |
4,727,820,420 |
|
|
|
|
|
Capital Paid |
4,727,820,420 |
4,727,820,420 |
|
Retained Earning -
Unappropriated |
[254,725,744] |
110,119,997 |
|
Total Shareholders' Equity |
4,473,094,676 |
4,837,940,417 |
|
Total Liabilities & Shareholders' Equity |
18,121,551,716 |
18,979,957,214 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2007 |
2006 |
|
|
|
|
|
Sales |
20,243,290,445 |
14,469,244,843 |
|
Gain on Exchange
Rate |
696,303,612 |
844,537,513 |
|
Other Income |
59,176,648 |
44,724,301 |
|
Total Revenues |
20,998,770,705 |
15,358,506,657 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
19,702,766,369 |
14,106,988,317 |
|
Selling & Administrative Expenses |
743,606,278 |
408,551,053 |
|
Total Expenses |
20,446,372,647 |
14,515,539,370 |
|
|
|
|
|
Profit / [Loss] before Interest
Expenses |
552,398,058 |
842,967,287 |
|
Interest Expenses |
[917,243,799] |
[733,264,780] |
|
|
|
|
|
Net Profit / [Loss] |
[364,845,741] |
109,702,507 |
FINANCIAL ANALYSIS
Annual Growth &
Profitability
|
Annual Growth |
2007 |
2006 |
|
Net Sales |
39.91 |
|
|
Operating Profit |
[53.16] |
|
|
Net Profit |
[432.58] |
|
|
Fixed Assets |
[2.95] |
|
|
Total Assets |
[4.52] |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
97.33 |
97.50 |
|
Operating Profit Margin |
2.73 |
5.83 |
|
S & A
Expenses |
3.67 |
2.82 |
|
Interest Paid |
4.53 |
5.07 |
|
Other Revenues |
3.73 |
6.15 |
|
Net Profit Margin |
[1.80] |
0.76 |
|
Earning Per Shares |
[0.77] |
0.23 |
|
No. of Shares |
472,782,042 |
472,782,042 |
Net Sales was
increased by 39.91%,
Operating Profit was
decreased by 53.16%,
Net Profit was
decreased by 432.58%,
Fixed Assets was
decreased by 2.95%,
Total Assets was
decreased by 4.52%.
Compare each cost
with sales, Cost of
Good Sold was
decreased from 97.50%
to 97.33%, Operating
Profit Margin was
decreased from 5.83%
to 2.73%, S
& A Expenses
was increased from
2.82% to 3.67%,
Interest Paid was decreased
from 5.07% to
4.53%, Other Revenues
was decreased from
6.15% to 3.73%,
Net Profit Margin
was decreased from
0.76% to -1.80%.
Earning Per Shares
was decreased from
0.23 baht per
share to -0.77
baht per share.
Liquidity
|
Liquidity |
2007 |
2006 |
|
Current Ratio |
0.83 |
0.93 |
|
Quick-Assets Ratio |
0.46 |
0.45 |
Current Ratio was
decreased from 0.93
to 0.83, show
Current Assets can
not cover Current
Liabilities, Liquidity Ratio
of the company was not
good, Quick-Assets Ratio
was increased from
0.45 to 0.46,
capacity to pay
Short Term Loan
was not good
too, because Current
Assets without Inventory
can not cover
Current Liabilities.
Leverage
|
Leverage |
2007 |
2006 |
|
D/E Ratio |
3.05 |
2.92 |
|
Times Interest Earned |
0.60 |
1.15 |
D/E Ratio was
increased from 2.92
to 3.05, 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
1.15 to 0.60,
capacity to pay
interest paid was
not good.
Efficiency
|
Efficiency |
2007 |
2006 |
|
Fixed Assets Turnover |
1.45 |
1.00 |
|
Total Assets Turnover |
1.12 |
0.76 |
|
Return on Assets |
[2.01] |
0.58 |
|
Return on Equity |
[8.16] |
2.27 |
|
Day's Payable |
28.69 |
46.79 |
|
Day’s Inventories |
27.56 |
42.03 |
|
Day’s Receivables |
26.57 |
32.56 |
Fixed Assets Turnover
was increased from
1.00 times to
1.45 times, Total
Assets Turnover was
increased from 0.76
times to 1.12
times, show the
company could use
Assets so efficiently, Return on Assets
was decreased from
0.58 to -2.01,
Return on Equity
was decreased from
2.27 to -8.16,
capacity to use
Assets to make
profit was not
good.
Day's Payable was
decreased from 47
days to 29
days, Day’s Inventories
was decreased from
43 days to
28 days, and
Day’s Receivables was
decreased from 33
days to 27
days.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.47.71 |
|
UK Pound |
1 |
Rs.83.30 |
|
Euro |
1 |
Rs.65.12 |
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%)