MIRA INFORM REPORT
|
Report Date : |
26.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
INDORAMA
PETROCHEM LTD. |
|
|
|
|
Registered Office : |
35th
Floor, Ocean Tower,
75/93 Soi Wattana, Sukhumvit 19
Road, Klongtoeynua,
Wattana, Bangkok 10110 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2009 |
|
|
|
|
Date of Incorporation : |
19.05.2003 |
|
|
|
|
Com. Reg. No.: |
0105546057211 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor and
Exporter of purified
terephthalic acid |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment
Behaviour : |
No Complaints |
|
Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
|
Thailand |
b1 |
b1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company NAME
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. PREM CHANDRA
GUPTA, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 250
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
GOOD 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 for domestic
and export markets.
It currently employs
250 staff.
Presently,
subject is a
wholly owned subsidiary
of Indorama Ventures
Ltd.., Thailand.
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 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 |
71 |
|
Mr. Sriprakash Lohia |
|
Indonesian |
59 |
|
Mr. Amit Lohia |
|
Indian |
37 |
|
Mr. Aloke Lohia |
[x] |
Indian |
53 |
|
Mrs. Suchitra Lohia |
[x] |
Indian |
47 |
|
Mr. Prem Chandra Gupta |
[x] |
Indian |
59 |
|
Mr. Satyanarayan Mohta |
[x] |
Indian |
53 |
|
Mr. Dilip Kumar
Agarwal |
[x] |
Indian |
55 |
AUTHORIZED PERSON
One of the mentioned
directors [x] can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Prem Chandra Gupta
is the Managing
Director.
He is Indian
nationality with the
age of 59
years old.
Mr. Bernd Tummers is
the Executive Director.
He is German
nationality with the
age of 66
years old.
Mr. V.S. Bapna is the
Executive Director.
He is Indian
nationality.
Mr. Satyanarayan Mohta is
the Operation Manager.
He is Indian
nationality with the
age of 53
years old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
and marketing of
Purified Terephthalic Acid, which
is a major
raw material in
the manufacture of
Polyester Polymer.
PRODUCTION CAPACITY
723,162 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, Italy, India,
Netherlands 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, Japan,
Taiwan, Republic of
China and United States
of America.
MAJOR CUSTOMER
Indorama Ventures Public
Company Limited :
Thailand
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 approximately
250 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
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
10,000,000.
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
723,162 MT per annum,
subscribes Dupont (formerly Invista)
technology in the
manufacturing process. The
plant is one
of the single
largest train plant
for the production
of PTA until
today.
PTA (Purified Terephthalic Acid) is a major
raw material in the
manufacture of polyester polymer. Since
2010 there has been
a growth in
demand for PTA,
particularly in Asia, driven by increasing
end usages of polyesters in
apparel, packaging and
industrial applications. Subject
has performed well
to cope with an
increasing demand.
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.
THE
SHAREHOLDERS LISTED WERE
: [as at April
26, 2010]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Indorama Ventures Public
Company Limited Nationality: Thai Address : 75/102
Sukhumvit 19 Rd.,
Klongtoetnua,
Wattana, Bangkok |
472,782,036 |
100.00 |
|
Mr. Amit Lohia Nationality: Indian Address : Jakarta,
Indonesia |
2 |
|
|
Mr. Sriprakash Lohia Nationality: Indonesian 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 |
- |
Total Shareholders : 6
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Veerachai
Ratanacharaskul No. 4323
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2009 & 2008
were:
ASSETS
|
Current Assets |
2009 |
2008 |
|
|
|
|
|
Cash and Cash Equivalents |
362,271,955 |
14,521,984 |
|
Trade Accts. Receivable |
2,669,973,761 |
1,277,148,142 |
|
Inventories |
1,307,893,868 |
991,490,849 |
|
Other Current Assets
|
107,804,651 |
98,537,281 |
|
|
|
|
|
Total Current Assets
|
4,447,944,235 |
2,381,698,256 |
|
Fixed Assets |
12,679,642,450 |
13,140,508,438 |
|
Intangible Assets |
390,471,264 |
405,874,887 |
|
Other Assets |
14,179,017 |
12,631,450 |
|
Total Assets |
17,532,236,966 |
15,940,713,031 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2009 |
2008 |
|
|
|
|
|
Short-term Loan from Bank |
1,666,857,462 |
2,714,030,769 |
|
Trade Accts. Payable |
1,723,300,172 |
506,722,150 |
|
Current Portion of Finance
Lease Contract Liabilities |
2,693,850 |
1,848,386 |
|
Current Portion of
Long-term Loan from Financial Institutions |
1,148,687,770 |
296,263,116 |
|
Other Current Liabilities |
152,874,234 |
142,372,744 |
|
|
|
|
|
Total Current Liabilities |
4,694,413,488 |
3,661,237,165 |
|
Finance Lease Contract
Liabilities Net of
Current Portion |
4,796,651 |
2,780,157 |
|
Long-term Loan from Financial Institution Net of
Current Portion |
6,249,581,178 |
8,119,189,997 |
|
Long-term Loan from
Person or Related Company |
1,224,954,385 |
911,023,527 |
|
Other Non-current Liabilities |
47,452,174 |
12,999,926 |
|
Total Liabilities |
12,221,197,876 |
12,707,230,772 |
|
|
|
|
|
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 |
|
Statutory Reserve |
139,336,485 |
- |
|
Retained Earning -
Unappropriated |
443,882,185 |
[1,494,338,161] |
|
Total Shareholders' Equity |
5,311,039,090 |
3,233,482,259 |
|
Total Liabilities & Shareholders' Equity |
17,532,236,966 |
15,940,713,031 |
PROFIT & LOSS ACCOUNT
|
Sale |
2009 |
2008 |
|
|
|
|
|
Sales |
20,257,351,764 |
16,991,603,264 |
|
Gain on Exchange
Rate |
435,863,314 |
- |
|
Other Income |
255,135,587 |
42,028,114 |
|
Total Sale s |
20,948,350,665 |
17,033,631,378 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
17,092,812,552 |
16,513,324,381 |
|
Selling Expenses |
573,193,725 |
690,437,370 |
|
Administrative Expenses |
70,100,445 |
35,050,513 |
|
Loss on Exchange Rate |
- |
356,517,835 |
|
Total Expenses |
17,736,106,722 |
17,595,330,099 |
|
|
|
|
|
Profit / [Loss] before Interest
Expenses |
3,212,243,943 |
[561,698,721] |
|
Interest Expenses |
[425,514,049] |
[677,913,696] |
|
|
|
|
|
Net Profit / [Loss] |
2,786,729,894 |
[1,239,612,417] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2009 |
2008 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.95 |
0.65 |
|
QUICK RATIO |
TIMES |
0.65 |
0.35 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.60 |
1.29 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.16 |
1.07 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
27.93 |
21.92 |
|
INVENTORY TURNOVER |
TIMES |
13.07 |
16.66 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
48.11 |
27.43 |
|
RECEIVABLES TURNOVER |
TIMES |
7.59 |
13.30 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
36.80 |
11.20 |
|
CASH CONVERSION CYCLE |
DAYS |
39.24 |
38.15 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
84.38 |
97.19 |
|
SELLING & ADMINISTRATION |
% |
3.18 |
4.27 |
|
INTEREST |
% |
2.10 |
3.99 |
|
GROSS PROFIT MARGIN |
% |
19.03 |
3.06 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
15.86 |
(3.31) |
|
NET PROFIT MARGIN |
% |
13.76 |
(7.30) |
|
RETURN ON EQUITY |
% |
52.47 |
(38.34) |
|
RETURN ON ASSET |
% |
15.89 |
(7.78) |
|
EARNING PER SHARE |
BAHT |
5.89 |
(2.62) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.70 |
0.80 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.30 |
3.93 |
|
TIME INTEREST EARNED |
TIMES |
7.55 |
(0.83) |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
19.22 |
|
|
OPERATING PROFIT |
% |
(671.88) |
|
|
NET PROFIT |
% |
324.81 |
|
|
FIXED ASSETS |
% |
(3.51) |
|
|
TOTAL ASSETS |
% |
9.98 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
19.03 |
Impressive |
Industrial Average |
4.89 |
|
Net Profit Margin |
13.76 |
Impressive |
Industrial Average |
(0.71) |
|
Return on Assets |
15.89 |
Impressive |
Industrial Average |
(0.74) |
|
Return on Equity |
52.47 |
Impressive |
Industrial Average |
(2.00) |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from sale s after accounting for
the cost of goods sold. Gross profit margin serves as the source for paying
additional expenses and future savings. The
company’s figure is 19.03%. When compared with the industry average, the
ratio of the company was higher, indicated that company was more profitable
than the same industry.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company’s figure is 13.76% compared with
those of its average competitors in the same industry, indicated that business
was an efficient operator in a dominant
position within its industry.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. Return on Assets is 15.89%,
higher figure when compared with those of its average competitors in the same
industry, indicated that business was an efficient profit in a dominant position within its industry.
Return on Equity indicates how profitable a company is by comparing its
net income to its average shareholders' equity, ROE measures how much the
shareholders earned for their investment in the company. Return on Equity is
52.47%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profit in a dominant position within its industry.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY RATIO
|
Current Ratio |
0.95 |
Risky |
Industrial Average |
0.96 |
|
Quick Ratio |
0.65 |
|
|
|
|
Cash Conversion Cycle |
39.24 |
|
|
|
The Current Ratio is to ascertain whether a company's short-term assets are
readily available to pay off its short-term liabilities. The company's figure
is 0.95 times in 2009, increase from 0.65 times, then the company may have
problems meeting its short-term obligations. When compared with the industry
average, the ratio of the company was lower.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 0.65 times in 2009,
increase from 0.35 times, then the company has not enough current assets that
presumably can be quickly converted to cash for pay financial obligations.
The Cash Conversion Cycle measures the number of days a company's cash
is tied up in the production and sales process of its operations and the
benefit from payment terms from its
creditors. It meant the company could survive when no cash inflow was received
from sale for 40 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.70 |
Impressive |
Industrial Average |
0.65 |
|
Debt to Equity Ratio |
2.30 |
Risky |
Industrial Average |
1.72 |
|
Times Interest Earned |
7.55 |
Impressive |
Industrial Average |
0.34 |
Debt to Equity Ratio a measurement of how much suppliers, lenders,
creditors and obligors have committed to the company versus what the
shareholders have committed. A lower the percentage means that the
company is using less leverage and has
stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 7.55 higher than 1, so the company can pay interest
expenses on outstanding debt.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.7 greater than 0.5, most of the
company's assets are financed through debt.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Uptrend
Times Interest Earned Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
1.60 |
Impressive |
Industrial Average |
1.50 |
|
Total Assets Turnover |
1.16 |
Impressive |
Industrial Average |
1.04 |
|
Inventory Conversion Period |
27.93 |
|
|
|
|
Inventory Turnover |
13.07 |
Impressive |
Industrial Average |
6.67 |
|
Receivables Conversion Period |
48.11 |
|
|
|
|
Receivables Turnover |
7.59 |
Impressive |
Industrial Average |
5.92 |
|
Payables Conversion Period |
36.80 |
|
|
|
Trend of the average
competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.45 |
|
UK Pound |
1 |
Rs.73.35 |
|
Euro |
1 |
Rs.64.78 |
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 |
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 |
|
---- |
NB |
New Business |
---- |
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%)
This report is issued at your request without any risk
and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.