MIRA INFORM REPORT
|
Report Date : |
05.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
THAI
HANSA WELDING ELECTRODES
CO., LTD. |
|
|
|
|
Registered Office : |
386/2 Moo 1, Soi Bee-Thai, Sukhumvit Road, Bangpoomai, Muang, Samutprakarn 10280 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
26.01.1972 |
|
|
|
|
Com. Reg. No.: |
0105515000641 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Exporter And Distributor of Welding Electrodes |
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 |
|
|
|
|
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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
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
THAI HANSA
WELDING ELECTRODES CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 386/2 MOO
1, SOI BEE-THAI, SUKHUMVIT ROAD,
BANGPOOMAI, MUANG,
SAMUTPRAKARN 10280,
THAILAND
TELEPHONE : [66] 2323-0022,
2323-0605-8
FAX :
[66] 2323-9832,
2323-0032
E-MAIL
ADDRESS : info@geminithai.com
REGISTRATION
ADDRESS : SAME AS
BUSINESS ADDRESS
ESTABLISHED
: 1972
REGISTRATION
NO. : 0105515000641 [Former: 65/2515]
CAPITAL REGISTERED : BHT.
50,000,000
CAPITAL PAID-UP : BHT 50,000,000
FISCALYEAR CLOSING DAT
: DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE
: MR. OUAYCHAI
APINORASETH, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 184
LINES
OF BUSINESS : WELDING ELECTRODES
MANUFACTURER, EXPORTER
AND DISTRIBUTOR
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
26, 1972 as
a private limited
company under the name style
THAI HANSA WELDING ELECTRODES
CO., LTD., by Apinoraseth family. The subject received
promotional privileges from
the Board of
Investment of Thailand
to manufacture welding
electrode products to
both local and
overseas markets. It
currently employs 184
staff.
The subject’s registered
address is 386/2
Moo 1, Sukhumvit
Rd., Bangpoomai, Muang,
Samutprakarn 10280, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Ouaychai Apinoraseth |
|
Thai |
63 |
|
Mr. Apichart Apinoraseth |
|
Thai |
53 |
|
Mr. Pairoj Apinoraseth |
|
Thai |
72 |
|
Mr. Arak Apinoraseth |
|
Thai |
59 |
|
Mr. Prapin Apinoraseth |
|
Thai |
50 |
|
Mr. Thawatchai Apinoraseth |
|
Thai |
57 |
AUTHORIZED PERSON
Two of the
above directors can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Ouaychai Apinoraseth is the
Managing Director.
He is Thai
nationality with the
age of 63
years old.
Mr. Apichart Apinoraseth is
the General Manager
& Plant Manager.
He is Thai
nationality with the
age of 53
years old.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
of welding electrodes
as the followings:
Mild Steel
High Tensite Steel
Hard Facing Steel
Stainless Steel
Cast Iron, copper
alloy and nickel
alloy
Low Temperature Service
Steel
Heat Resistant Steel
Corrosion Resistant Steel
Welding Cable
etc.
MAJOR BRANDS
“GEMINI”, “NAKATA”
PRODUCTION
1,600 tons/month
IMPORT
[COUNTRIES]
20% of raw
materials and steel
are imported from
Japan, Singapore, Taiwan, Malaysia,
Germany, Australia and
Republic of China.
MAJOR SUPPLIERS
|
Name |
Country |
|
|
|
|
|
|
B.H.P. Steel Co.,
Ltd. |
Australia |
[5-10%] |
|
Hansa Metallwerke AG.
|
Germany |
[5-10%] |
EXPORTS
[COUNTRIES]
80% of the
products is exported
to United States of
America, Germany, Singapore,
United Kingdom, France,
Canada, Australia, Vietnam,
Myanmar, Laos, Japan,
Republic of China,
Middle East, India,
Pakistan and etc.
SALES
[LOCAL]
20% of the
products is sold
locally to manufacturers, wholesalers
and retailers.
MAJOR CUSTOMERS
Lertvilai & Sons
Co., Ltd. : Thailand
M. C. P. Brothers Co.,
Ltd. : Thailand
RELATED & AFFILIATED
COMPANIES
Lertvilai & Sons
Co., Ltd.
Business Type: Trading Company
Gemini [Thailand] Co.,
Ltd.
Business Type: Manufacturer of
welding electrodes.
M. C. P. Brothers Co.,
Ltd.
Business Type :
Trading company.
Thanyanoraseth Co., Ltd.
Business Type :
Manufacturer of welding
electrodes.
Triangle Cables [Thailand]
Co., Ltd.
Business Type :
Manufacturer of flexible
power.
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 on the
credits term of
30-60 days and
T/T.
Exports are against
D/P at sight
and T/T.
BANKING
Bangkok Bank
Public Co., Ltd.
[Head
Office : 333 Silom
Road, Silom, Bangrak,
Bangkok]
The Siam
Commercial Bank Public
Co., Ltd.
[Taladnoi
Branch, Taladnoi, Samphantawong, Bangkok]
EMPLOYMENT
The
subject employs approximately 184
staff. [office, sales
staff and factory
workers]
LOCATION DETAILS
The premise is owned for
operating administrative office,
factory and warehouse
at the heading
address. Premise is located
in an industrial
area on 12,800
square meters.
REMARK
CREDIT OF EUR 375,000
SHOULD BE IN
ORDER.
COMMENT
The
subject is an
manufacturer, distributor
and exporter of welding
electrodes. Most of
products have been served
industrial sector. Its sales
mainly related to industrial consumption
which is likely an
outstanding increase.
FINANCIAL INFORMATION
The capital was
registered at Bht.
1,500,000 divided into
15,000 shares of
Bht. 100 each.
Capital was increased
later as followings
:
Bht. 9,000,000
in December 1981
Bht. 26,000,000
on February 28,
1989
Bht. 50,000,000
on February 15,
1993
The latest registered
capital was increased
to Bht. 50,000,000 divided into 500,000
shares of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED
WERE : [as at
April 30, 2011]
|
NAME |
HOLDING |
% |
|
Mr. Kasemsit Apinoraseth Nationality: Thai Address : 784
Charoenkrung Rd., Samphantawong, Bangkok |
99,983 |
20.00 |
|
Mr. Pairoj Apinoraseth Nationality: Thai Address : 244
Moo 5, Taiban,
Muang, Samutsakorn |
75,000 |
15.00 |
|
Mr. Thawatchai Apinoraseth Nationality: Thai Address : 788-790
Charoenkrung Rd.,
Samphantawong, Bangkok |
66,618 |
13.33 |
|
Mr. Prapin Apinoraseth Nationality: Thai Address : 788-790
Charoenkrung Rd., Samphantawong, Bangkok |
50,163 |
10.03 |
|
Mr. Sitthiboon Apinoraseth Nationality: Thai Address : 22
Trok Sunthornpimol, Jarumang,
Rongmuang, Pathumwan, Bangkok |
37,500 |
7.50 |
|
Mr. Tan Apinoraseth Nationality: Thai Address : 22
Trok Sunthornpimol, Jarumang,
Rongmuang, Pathumwan, Bangkok |
37,500 |
7.50 |
|
Mr. Ouaychai Apinoraseth Nationality: Thai Address : 639/19
Ladprao Rd., Ladyao,
Bangkhen, Bangkok |
33,309 |
6.66 |
|
Mr. Apichart Apinoraseth Nationality: Thai Address : 788-790
Charoenkrung Rd.,
Samphantawong, Bangkok |
33,309 |
6.66 |
|
Mr. Visit Apinoraseth Nationality: Thai Address : 786
Charoenkrung Rd., Samphantawong, Bangkok |
33,309 |
6.66 |
|
Mr. Arak Apinoraseth Nationality: Thai Address : 786
Charoenkrung Rd., Samphantawong, Bangkok |
33,309 |
6.66 |
Total Shareholders : 10
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Yongyuth Tangsirisa-nguan No.
2400
BALANCE SHEET [BAHT]
The latest
financial figures published
for December 31,
2010 & 2009
were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalents |
12,110,043.02 |
20,540,596.23 |
|
Trade Accts. & Notes
Receivable |
120,749,982.52 |
108,024,517.53 |
|
Inventories &
Packaging |
8,876,571.00 |
5,798,166.49 |
|
Other Current Assets
|
2,531,566.24 |
3,553,767.93 |
|
Total Current Assets
|
144,268,162.77 |
137,917,048.18 |
|
|
|
|
|
Fixed Assets |
28,400,376.32 |
22,445,708.26 |
|
Intangible Assets |
1,569,315.04 |
1,969,315.06 |
|
Other Assets |
2,044,043.91 |
2,669,043.91 |
|
Total Assets |
176,281,898.04 |
165,001,115.41 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft &
Short Term Loan
from Financial Institute |
27,724,329.74 |
6,652,000.00 |
|
Trade Accts. & Notes Payable |
25,986,200.80 |
40,855,141.65 |
|
Current Portion of Lease
Contract Liabilities |
955,820.22 |
1,138,851.43 |
|
Accrued Income Tax |
1,494,225.00 |
1,982,378.28 |
|
Other Current Liabilities |
6,022,401.65 |
5,339,757.16 |
|
Total Current Liabilities |
62,182,977.41 |
55,968,128.52 |
|
Lease Contract Liabilities, Net
of Current Portion |
1,193,298.61 |
1,545,546.27 |
|
Total Liabilities |
63,376,276.02 |
57,513,674.79 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued and
fully paid share
capital 500,000 shares |
50,000,000.00 |
50,000,000.00 |
|
Capital Paid |
50,000,000.00 |
50,000,000.00 |
|
Statutory Reserve |
5,000,000.00 |
5,000,000.00 |
|
Retained Earning -
Unappropriated |
57,905,622.02 |
52,487,440.62 |
|
Total Shareholders' Equity |
112,905,622.02 |
107,487,440.62 |
|
Total Liabilities & Shareholders' Equity |
176,281,898.04 |
165,001,115.41 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales |
385,287,529.82 |
350,003,510.32 |
|
Services Income |
4,322,662.50 |
4,572,805.00 |
|
Gain on Disposal
of Assets |
186,914.89 |
742,052.08 |
|
Gain on Exchange
Rate |
2,653,650.16 |
- |
|
Other Income |
1,712,692.54 |
58,406.30 |
|
Total Sales |
394,163,449.91 |
355,376,773.70 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
343,099,596.99 |
303,149,761.53 |
|
Selling Expenses |
20,785,337.86 |
20,845,186.00 |
|
Administrative Expenses |
19,362,291.94 |
16,372,189.43 |
|
Other Expenses |
- |
1,920,804.33 |
|
Total Expenses |
383,247,226.79 |
342,287,941.29 |
|
Profit Before Interest Expenses & Income
Tax |
10,916,223.12 |
13,088,832.41 |
|
Interest Expenses |
[1,261,729.62] |
[2,115,403.10] |
|
Profit Before Income Tax |
9,654,493.50 |
10,973,429.32 |
|
Income Tax |
[3,236,312.10] |
[3,615,855.42] |
|
Net Profit / [Loss] |
6,418,181.40 |
7,357,573.89 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
2.32 |
2.46 |
|
QUICK RATIO |
TIMES |
2.14 |
2.30 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
13.72 |
15.80 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.21 |
2.15 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
9.44 |
6.98 |
|
INVENTORY TURNOVER |
TIMES |
38.65 |
52.28 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
113.12 |
111.20 |
|
RECEIVABLES TURNOVER |
TIMES |
3.23 |
3.28 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
27.64 |
49.19 |
|
CASH CONVERSION CYCLE |
DAYS |
94.92 |
68.99 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
88.06 |
85.50 |
|
SELLING & ADMINISTRATION |
% |
10.30 |
10.50 |
|
INTEREST |
% |
0.32 |
0.60 |
|
GROSS PROFIT MARGIN |
% |
13.11 |
14.73 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.80 |
3.69 |
|
NET PROFIT MARGIN |
% |
1.65 |
2.08 |
|
RETURN ON EQUITY |
% |
5.68 |
6.85 |
|
RETURN ON ASSET |
% |
3.64 |
4.46 |
|
EARNING PER SHARE |
BAHT |
12.84 |
14.72 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.36 |
0.35 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.56 |
0.54 |
|
TIME INTEREST EARNED |
TIMES |
8.65 |
6.19 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
9.88 |
|
|
OPERATING PROFIT |
% |
(16.60) |
|
|
NET PROFIT |
% |
(12.77) |
|
|
FIXED ASSETS |
% |
26.53 |
|
|
TOTAL ASSETS |
% |
6.84 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
13.11 |
Impressive |
Industrial
Average |
11.91 |
|
Net Profit Margin |
1.65 |
Impressive |
Industrial
Average |
0.74 |
|
Return on Assets |
3.64 |
Impressive |
Industrial
Average |
0.87 |
|
Return on Equity |
5.68 |
Impressive |
Industrial
Average |
0.32 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from sales 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 13.11%. When
compared with the industry average, the ratio of the company was higher. This
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 1.65% 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 ratio is
3.64%, 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 ratio is 5.68%,
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 |
2.32 |
Impressive |
Industrial Average |
1.60 |
|
Quick Ratio |
2.14 |
|
|
|
|
Cash Conversion Cycle |
94.92 |
|
|
|
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 2.32 times in 2010, decrease from 2.46 times, then it is generally
considered to have good short-term financial strength. When compared with the
industry average, the ratio of the company was higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 2.14 times in 2010,
decrease from 2.3 times, although excluding inventory so the company still have
good short-term financial strength.
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 95 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.36 |
Impressive |
Industrial
Average |
0.47 |
|
Debt to Equity Ratio |
0.56 |
Impressive |
Industrial
Average |
0.90 |
|
Times Interest Earned |
8.65 |
Impressive |
Industrial
Average |
1.55 |
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 a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 8.66 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 0.36 less than 0.5, most of the company's
assets are financed through equity.
Trend of the
average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
13.72 |
Impressive |
Industrial
Average |
2.37 |
|
Total Assets Turnover |
2.21 |
Impressive |
Industrial
Average |
1.03 |
|
Inventory Conversion Period |
9.44 |
|
|
|
|
Inventory Turnover |
38.65 |
Impressive |
Industrial
Average |
3.12 |
|
Receivables Conversion Period |
113.12 |
|
|
|
|
Receivables Turnover |
3.23 |
Acceptable |
Industrial
Average |
4.86 |
|
Payables Conversion Period |
27.64 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.42 |
|
UK Pound |
1 |
Rs.72.70 |
|
Euro |
1 |
Rs.63.55 |
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.