MIRA
INFORM REPORT
|
Report Date : |
15.10.2008 |
IDENTIFICATION
DETAILS
|
Name : |
NITRO CHEMICAL INDUSTRY LIMITED |
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Registered Office : |
84/2 MOo 4, Rama
2 Road, Bangtorad, Muang, Samutsakorn 74000 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
25.01.1982 |
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Com. Reg. No.: |
0105525002719 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Distributor and of
Exporter Paint Chemicals |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name of the company
NITRO CHEMICAL INDUSTRY LIMITED
SUMMARY
BUSINESS
ADDRESS : 24
RAMA 1 ROAD, RONGMUANG,
PATHUMWAN, BANGKOK
10330, THAILAND
TELEPHONE : [66] 2215-9079,
215-5934
FAX : [66] 2215-9282
E-MAIL
ADDRESS : export@nitrochemical.com
REGISTRATION ADDRESS : 84/2 MOO 4, RAMA 2
ROAD, BANGTORAD,
MUANG, SAMUTSAKORN
74000
ESTABLISHED
: 1982
REGISTRATION NO. : 0105525002719
[Former : 270/2525]
CAPITAL REGISTERED : BHT. 300,000,000
CAPITAL PAID-UP : BHT.
300,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED COMPANY
EXECUTIVE : MR.
AMPHAN VIPRAKASIT, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 100
LINES
OF BUSINESS : PAINT CHEMICALS
MANUFACTURER, DISTRIBUTOR
& EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH GOOD PERFORMANCE
HISTORY
The
subject was established
on January 25,
1982 as a
private limited company
under the name
style NITRO CHEMICAL
INDUSTRY LIMITED by Thai groups,
in order to
manufacture specialty chemicals
for paint industry
both domestic and
overseas markets. It
currently employs approximately 100 staff.
The
subject received the
promotion privilege from
the Board of Investment and
granted industrial nitrocellulose manufacturing and marketing
rights in Thailand
from Defense Ministry
of Thailand.
The subject’s registered address is
84/2 Moo 4, Rama 2 Rd., Bangtorad,
Muang, Samutsakorn 74000,
while the subject’s
current operation address
is at 24 Rama 1 Rd.,
Rongmuang, Pathumwan, Bangkok
10330.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Sumarat Viprakasit |
[+] |
Thai |
66 |
|
Mr. Chavalit Viprakasit |
[+] |
Thai |
45 |
|
Mr. Thaksin Viprakasit |
[x] |
Thai |
75 |
|
Mr. Amphan Viprakasit |
[x] |
Thai |
70 |
|
Mr. Pichet Viprakasit |
|
Thai |
34 |
|
Mr. Yim Tanangteerapong |
|
Thai |
79 |
|
Mr. Eiam Eiamvananontachai |
[+] |
Thai |
71 |
AUTHORIZED PERSON
Both of the
mentioned directors [x]
can jointly sign
or one of the mentioned
directors [x] can
jointly sign with
one of the directors [+]
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Amphan
Viprakasit is the Managing Director.
He is Thai nationality with
the age of
70 years old.
Mr. Eiam
Eiamvananontachai is the
Factory Manager.
He is Thai nationality with
the age of 71
years old.
Mr. Pichet Viprakasit
is the Marketing Manager.
He is Thai nationality with
the age of
34 years old.
Mr. Prakorn Veerasombat is
the Sales Manager.
He is Thai nationality.
BUSINESS OPERATIONS
The subject is engaged in
manufacturing various kinds of
specialty chemicals, mainly
Nitrocellulose, which has two
grades “SS’ and “RS” for
use in
various coating applications including wood coating,
paper coating, finished
for grained leather,
printing ink, aircraft
lacquer, protective finishes
for metal, automotive lacquer,
aluminum foil coating
and etc.
PRODUCTION CAPACITY
2,500 tons/month
PURCHASE
Most
of raw materials
are purchased from
local suppliers, the
rest and machinery
are imported from
United States of America,
Taiwan, United Kingdom,
Germany, Japan, Belgium
and Singapore.
SALES [LOCAL]
80%
of the products is sold
locally to manufacturers, and the remaining 20% is
exported to Korea,
Bangladesh, Republic of
China, Sri Lanka,
India, Indonesia, Japan,
Malaysia, Vietnam, Singapore,
Saudi Arabia and
other Middle East
countries.
MAJOR CUSTOMERS
- J.B.P. International Co., Ltd. :
Thailand
- I.C.I Paints [Thailand]
Co., Ltd. : 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.
RELATED/ASSOCIATED COMPANIES
- V.S. General
Chem Co., Ltd.
Business Type:
Manufacturer & distributor
of industrial chemicals
- RCI Labscan
Ltd.
Business Type:
Manufacturer & distributor
of industrial chemicals
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
30-60-90 days.
Imports
are by L/C at sight
and T/T on
negotiated term.
Exports
are against L/C
at sight and
T/T.
BANKING
Bangkok Bank
Public Co., Ltd.
[Bangkoknoi Branch :
Bangkoknoi, Bangkok 10700]
Krung Thai
Bank Public Co., Ltd.
[Sapanlueng Branch :
Banthadthong Rd., Rongmuang,
Pathumwan, Bangkok 10330]
[Pathumwan Branch: Wangmai,
Pathumwan, Bangkok 10330]
EMPLOYMENT
The
subject employs approximately 100 staff [office
staff and factory
workers].
LOCATION DETAILS
The premise is owned
for administrative office
at the heading address. Premise
is located in
commercial area.
Factory
is located on
96,000 square meters of
area, at 84/2
Moo 4, Rama 2 Rd., Bangtorad,
Muang, Samutsakorn 74000,
Tel : [66] 34 839-467-8,
Fax: [66] 34 839-469.
COMMENT
The
subject was formed
in 1992 as
a manufacture of
paint chemicals. Since
its established the
company, the subject
has become a
leading manufacturer of Nitrocellulose product. NCI’s market
covers more than
25 countries worldwide
including Asian Pacific
region, North America,
Canada, Australia, Middle
East and etc.
The products under
the NCI all manufactured “Continuous Process”
by most advanced
high-tech machinery and equipments,
all computerized control.
The great technology
capacity developed has
allowed the company
to develop different
products for the most
diverse application within
industry in general.
Despite
economic uncertainties, subject
still maintains moderate
business.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht.
15,000,000 divided into 15,000 shares of
Bht. 1,000 each.
The
capital was increased later as follows:
Bht. 90,000,000
on May 24, 1990
Bht.
150,000,000 on August
15, 1991
Bht.
300,000,000 on December
9, 1998
The
latest registered capital
was increased to
Bht. 300,000,000 divided
into 30,000,000 shares of Bht. 10
each with fully
paid.
THE SHAREHOLDERS LISTED WERE
[as
at March 22,
2007]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Thaksin
Viprakasit Nationality: Thai Address : 73
Thaklang Rd., Thubthieng, Muang, Trang Province |
7,232,400 |
24.11 |
|
Mr. Amphan
Viprakasit Nationality: Thai Address : 2
Ramkhamhaeng Rd., Bangkapi,
Bangkok |
3,500,000 |
11.67 |
|
Mrs. Sumarat
Viprakasit Nationality: Thai Address : 24
Rama 1 Rd., Rongmuang, Pathumwan,
Bangkok 10330 |
3,500,000 |
11.67 |
|
Mr. Pichet
Viprakasit Nationality: Thai Address : 2
Ramkhamhaeng Rd., Bangkapi,
Bangkok |
3,437,300 |
11.46 |
|
Mr. Eiam
Eiamvananontachai Nationality: Thai Address : 14/68 Rajvithi-Nakornchaisri Rd.,
Bangkoknoi, Bangkok 10700 |
3,000,000 |
10.00 |
|
Ms. Punnarat
Viprakasit Nationality: Thai Address : 2 Ramkhamhaeng Rd., Bangkapi, Bangkok |
1,637,300 |
5.46 |
|
Mr. Yim
Tanangteerapong Nationality: Thai Address : 39-41 Visetkul
Rd., Thubthieng, Muang, Trang Province |
1,500,000 |
5.00 |
|
Others |
6,193,000 |
20.63 |
Total Shareholders : 20
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT
NO.
Ms. Saowalak Kor-Anantakul No. 1552
BALANCE SHEET [BAHT]
The latest financial figures published as at
December 31, 2006 &
2005 were:
ASSETS
|
Current Assets |
2006 |
2005 |
|
|
|
|
|
Cash in hand
& at Bank
|
114,109,653.09 |
40,510,376.58 |
|
Short-term Investment |
42,199,918.95 |
41,556,418.95 |
|
Trade Accts. Receivable |
216,230,356.57 |
267,517,252.98 |
|
Inventories |
102,818,314.22 |
107,699,423.31 |
|
Prepaid Income Tax |
22,500,000.00 |
26,700,000.00 |
|
Other Current Assets
|
72,809,111.59 |
50,852,343.56 |
|
|
|
|
|
Total Current
Assets |
570,667,354.42 |
534,835,815.38 |
|
Investment in Associated Companies |
443,524,317.65 |
167,524,317.65 |
|
Other Long-term Investment |
7,336,000.00 |
7,336,000.00 |
|
Fixed Assets |
247,124,720.10 |
266,585,816.23 |
|
Other Assets |
8,180,298.61 |
9,102,513.13 |
|
Total Assets |
1,276,832,690.78 |
985,384,462.39 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2006 |
2005 |
|
|
|
|
|
Bank Overdraft |
17,171,623.23 |
25,045,911.47 |
|
Trade Accts. Payable |
24,051,133.78 |
39,968,954.97 |
|
Reserve for Income
Tax |
36,743,566.49 |
60,769,968.15 |
|
Short-term Loan |
50,000,000.00 |
- |
|
Current Portion of
Long-term Loan |
75,000,000.00 |
6,250,000.00 |
|
Other Current Liabilities |
20,478,280.36 |
29,380,572.60 |
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|
|
|
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Total Current
Liabilities |
223,444,603.86 |
161,415,407.19 |
|
Long-term Loan |
218,750,000.00 |
13,750,000.00 |
|
Total Liabilities |
442,194,603.86 |
175,165,407.19 |
|
|
|
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Shareholders'
Equity |
|
|
|
|
|
|
|
Share capital : Baht 10
par value authorized, issued
and fully paid share
capital 30,000,000 shares |
300,000,000.00 |
300,000,000.00 |
|
|
|
|
|
Capital Paid |
300,000,000.00 |
300,000,000.00 |
|
Retained Earning Appropriated for
Statutory Reserve |
30,000,000.00 |
30,000,000.00 |
|
Other Reserves |
55,380,123.49 |
55,380,123.49 |
|
Unappropriated |
449,257,963.43 |
424,838,931.71 |
|
Total
Shareholders' Equity |
834,638,086.92 |
810,219,055.20 |
|
Total
Liabilities & Shareholders' Equity |
1,276,832,690.78 |
985,384,462.39 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2006 |
2005 |
|
|
|
|
|
Sales |
783,798,467.05 |
908,831,291.62 |
|
Dividend Income |
3,753,440.00 |
2,576,960.00 |
|
Other Income |
11,349,706.26 |
21,427,030.63 |
|
Total Revenues
|
798,901,613.31 |
932,835,282.25 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
546,975,057.34 |
621,399,596.73 |
|
Selling & Administrative Expenses |
120,377,061.20 |
114,319,396.67 |
|
Total Expenses |
667,352,118.54 |
735,718,993.40 |
|
|
|
|
|
Profit / [Loss] before
Interest Expenses &
Income Tax |
131,549,494.77 |
197,116,288.85 |
|
Interest Expenses |
[10,354,279.99] |
[525,601.03] |
|
Income Tax |
[36,743,566.49] |
[60,769,968.15] |
|
|
|
|
|
Net Profit / [Loss] |
84,451,648.29 |
135,820,719.67 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2006 |
2005 |
|
Net Sales |
[13.76] |
|
|
Operating Profit |
[22.62] |
|
|
Net Profit |
[37.82] |
|
|
Fixed Assets |
[7.30] |
|
|
Total Assets |
29.58 |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
69.79 |
68.37 |
|
Operating Profit Margin |
16.78 |
21.69 |
|
S & A
Expenses |
15.36 |
12.58 |
|
Interest Paid |
1.32 |
0.06 |
|
Other Revenues |
1.93 |
2.64 |
|
Net Profit Margin |
10.77 |
14.94 |
|
Earning Per Shares |
2.82 |
4.53 |
|
No. of Shares |
30,000,000 |
30,000,000 |
Net Sales was
decreased by 13.76%,
Operating Profit was
decreased by 22.62%,
Net Profit was
decreased by 37.82%,
Fixed Assets was
decreased by 7.30%,
Total Assets was
increased by 29.58%.
Compare each cost
with sales, Cost of
Good Sold was
increased from 68.37%
to 69.79%, Operating
Profit Margin was
decreased from 21.69%
to 16.78%, S
& A Expenses
was increased from
12.58% to 15.36%,
Interest Paid was increased
from 0.06% to
1.32%, Other Revenues
was decreased from
2.64% to 1.93%,
Net Profit Margin
was decreased from
14.94% to 10.77%.
Earning Per Shares
was decreased from
4.53 baht per
share to 2.82
baht per share.
Liquidity
|
Liquidity |
2006 |
2005 |
|
Current Ratio |
2.55 |
3.31 |
|
Quick-Assets Ratio |
1.44 |
2.02 |
Current Ratio was
decreased from 3.31
to 2.55, show
Current Assets can
cover Current Liabilities, Liquidity Ratio of
the company was
good, Quick-Assets Ratio
was decreased from
2.02 to 1.44,
capacity to pay
Short Term Loan
was good too,
because Current Assets
without Inventory can
cover Current Liabilities.
Leverage
|
Leverage |
2006 |
2005 |
|
D/E Ratio |
0.53 |
0.22 |
|
Times Interest Earned |
12.70 |
375.03 |
D/E Ratio was
increased from 0.22
to 0.53, 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
375.03 to 12.70,
capacity to pay
interest paid was
good.
Efficiency
|
Efficiency |
2006 |
2005 |
|
Fixed Assets Turnover |
3.17 |
3.41 |
|
Total Assets Turnover |
0.61 |
0.92 |
|
Return on Assets |
6.61 |
13.78 |
|
Return on Equity |
10.12 |
16.76 |
|
Day's Payable |
11.05 |
15.83 |
|
Day’s Inventories |
47.22 |
42.66 |
|
Day’s Receivables |
99.31 |
105.97 |
Fixed Assets Turnover
was decreased from
3.41 times to
3.17 times, Total
Assets Turnover was
decreased from 0.92
times to 0.61
times, show the
company could not
use Assets so
efficiently, Return on
Assets was decreased
from 13.78 to
6.61, Return on
Equity was decreased
from 16.76 to
10.12, capacity to
use Assets to
make profit was
good.
Day's Payable was
decreased from 16
days to 12
days, while Day’s
Inventories was increased
from 43 days
to 48 days, but Day’s
Receivables was decreased
from 106 days
to 100 days.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.43 |
|
UK Pound |
1 |
Rs.84.54 |
|
Euro |
1 |
Rs.65.91 |
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%)