MIRA INFORM REPORT
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Report Date : |
05.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
THAI
NICHIA ELECTRODES LIMITED
PARTNERSHIP |
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Registered Office : |
609 Sathupradit
Road, Chongnonsi, Yannawa, Bangkok
10120 |
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Country : |
Thailand |
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Financials (as on) : |
30.09.2010 |
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Date of Incorporation : |
15.10.1974 |
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Com. Reg. No.: |
0103517021503 |
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Legal Form : |
Limited Partnership |
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Line of Business : |
Manufacturer
and Distributor of Welding Electrodes |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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Payment
Behaviour : |
No Complaints |
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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 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name
THAI NICHIA ELECTRODES
LIMITED PARTNERSHIP
SUMMARY
BUSINESS
ADDRESS : 609
SATHUPRADIT ROAD, CHONGNONSI,
YANNAWA, BANGKOK
10120
TELEPHONE : [66] 2284-1930-2,
2284-0266
FAX :
[66] 2294-6519
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1974
REGISTRATION
NO. : 0103517021503 [Former
: 2180/2517]
CAPITAL REGISTERED : BHT. 10,000,000
CAPITAL PAID-UP : BHT.
10,000,000
FISCAL YEAR CLOSING DATE : SEPTEMBER 30
LEGAL
STATUS : LIMITED PARTNERSHIP
EXECUTIVE : MR. BOONTRONG WONGPOONSIN,
THAI
MANAGING PARTNER
NO.
OF STAFF : 30
LINES
OF BUSINESS : WELDING ELECTRODES
MANUFACTURER AND
DISTRIBUTOR
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
October 15, 1974 as
a limited partnership under the
name style THAI NICHIA
ELECTRODES LIMITED PARTNERSHIP,
by Thai partners, in order to manufacture and distribute
welding electrodes for both domestic
and international markets.
It currently employs
approximate 30 staff.
The
subject’s registered address
is 609 Sathupradit Rd., Chongnonsi,
Yannawa, Bangkok 10120,
and this is
the subject’s current
operation address.
THE AUTHORIZED PERSON
Mr. Boontrong Wongpoonsin
Mr. Bunyarit Wongpoonsin
Mr. Vorathep Wongpoonsin
Two of the
above partners can
jointly sign on
behalf of the
subject with seal
affixed. All of
the above partners
bear full financial
responsibility by law.
MANAGEMENT
Mr. Boontrong Wongpoonsin is
the Managing Partner.
He is Thai
nationality with the
age of 65
years old.
Mr. Roengchai Jorcharoen is
the Production Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is engaged
in manufacturing and
distributing of welding
electrodes, under the
brand name “NICHIA”.
Its production capacity
is around 100
tons per month.
PURCHASE
Most of raw
materials especially wire
and cable are
purchased from local
supplies, the remaining,
as well as
wire drawing & cutting machines,
and welding rod
machine are imported from
Japan, Taiwan, Republic
of China, and
Singapore.
MAJOR SUPPLIER
Nichia Welding Electrodes
Mfg. Co., Ltd.
: Japan
SALES
80% of the
products is sold
locally by wholesale
to dealers, manufacturers
and
end-users.
EXPORT
20% of the products
is exported to
Singapore, Pakistan, Hong Kong,
Malaysia, Vietnam, India and
Indonesia.
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
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately 30 staff.
LOCATION
DETAILS
The premise is owned for administrative office, factory and
warehouse at the heading
address. Premise is
located in commercial/residential area.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
100,000.
COMMENT
The subject was formed
in 1974 as a
manufacturer and distributor
of welding electrodes.
Subject’s growth is
related to economic
conditions and industrial consumption which currently
has been drastically
improved. Its sales
were reported moderately
in 2010, as well as current
business outlook is
impressive.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 10,000,000 which
was carried by
5 persons as
followed :
Name Amount
Mr. Boontrong Wongpoonsin Bht. 2,500,000
[unlimited partner]
Mr. Boonkerd
Wongpoonsin Bht. 1,200,000
Ms. Vilai
Wongpoonsin Bht. 1,000,000
Ms. Vipa
Wongpoonsin Bht. 800,000
Poonsinwattana [1975]
Co., Ltd. Bht.
4,500,000
On
September 24, 2007,
the capital was
carried by 3
persons as followed:
Name Amount
Mr. Boontrong Wongpoonsin Bht. 6,000,000
[unlimited partner]
Mrs. Pornpimol Wongpoonsin Bht. 2,000,000
Mr. Bunyarit
Wongpoonsin Bht. 2,000,000
On
December 11, 2009,
the capital was
carried by 4
persons as followed:
Name Age Amount
Mr. Boontrong Wongpoonsin [65] Bht.
4,000,000 [unlimited partner]
Mrs. Pornpimol Wongpoonsin [60] Bht.
2,000,000
Mr. Bunyarit
Wongpoonsin [32] Bht.
2,000,000 [unlimited
partner]
Mr. Vorathep
Wongpoonsin [26] Bht.
2,000,000 [unlimited partner]
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Sirin Nanthavoraseth No. 3153
BALANCE SHEET [BAHT]
The
latest financial figures
published for September
30, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalent |
148,553.66 |
148,553.66 |
|
Trade Accounts Receivable |
6,065,703.74 |
13,956,644.51 |
|
Inventories |
26,730,323.55 |
19,953,612.55 |
|
Other Current Assets |
1,222,554.54 |
823,024.88 |
|
|
|
|
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Total Current Assets
|
34,167,135.49 |
34,881,835.60 |
|
|
|
|
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Fixed Assets |
2,075,587.59 |
2,878,892.26 |
|
Total Assets |
36,242,723.08 |
37,760,727.86 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft & Short-term
Loan from Financial Institute |
11,809,972.16 |
10,437,385.56 |
|
Trade Accounts Payable |
7,686,501.39 |
11,181,430.23 |
|
Other Current Liabilities |
1,147,480.16 |
1,128,985.94 |
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|
|
|
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Total Current Liabilities |
20,643,953.71 |
22,747,801.73 |
|
Total Liabilities |
20,643,953.71 |
22,747,801.73 |
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Shareholders’ Equity |
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|
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Capital Paid |
10,000,000.00 |
10,000,000.00 |
|
General Reserve |
1,500,000.00 |
1,500,000.00 |
|
Retained Earning-
Unappropriated |
4,098,769.37 |
3,512,926.13 |
|
Total Shareholders' Equity |
15,598,769.37 |
15,012,926.13 |
|
Total Liabilities & Shareholders' Equity |
36,242,723.08 |
37,760,727.86 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
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Sales Income |
65,703,192.24 |
56,249,363.46 |
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Other Income |
467,310.48 |
224,764.41 |
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Total Sales |
66,170,502.72 |
56,474,127.87 |
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Expenses |
|
|
|
|
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Cost of Goods
Sold |
55,495,970.91 |
45,590,364.19 |
|
Selling Expenses |
6,819,689.45 |
6,422,274.09 |
|
Administrative Expenses |
2,228,222.35 |
2,445,145.62 |
|
Total Expenses |
64,543,882.71 |
54,457,783.90 |
|
|
|
|
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Profit before Financial Cost &
Income Tax |
1,626,620.01 |
2,016,343.97 |
|
Financial Cost |
[739,942.52] |
[1,160,000.37] |
|
Income Tax |
[300,834.25] |
[295,649.20] |
|
Net Profit / [Loss] |
585,843.24 |
560,694.40 |
|
Retained Earning,
Beginning of Year |
3,512,926.13 |
2,952,231.73 |
|
|
|
|
|
Retained Earning, End of
Year |
4,098,769.37 |
3,512,926.13 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.66 |
1.53 |
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QUICK RATIO |
TIMES |
0.30 |
0.62 |
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ACTIVITY RATIO |
|
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|
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FIXED ASSETS TURNOVER |
TIMES |
31.66 |
19.54 |
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TOTAL ASSETS TURNOVER |
TIMES |
1.81 |
1.49 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
175.81 |
159.75 |
|
INVENTORY TURNOVER |
TIMES |
2.08 |
2.28 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
33.70 |
90.56 |
|
RECEIVABLES TURNOVER |
TIMES |
10.83 |
4.03 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
50.55 |
89.52 |
|
CASH CONVERSION CYCLE |
DAYS |
158.95 |
160.79 |
|
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PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
84.46 |
81.05 |
|
SELLING & ADMINISTRATION |
% |
13.77 |
15.76 |
|
INTEREST |
% |
1.13 |
2.06 |
|
GROSS PROFIT MARGIN |
% |
16.25 |
19.35 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.48 |
3.58 |
|
NET PROFIT MARGIN |
% |
0.89 |
1.00 |
|
RETURN ON EQUITY |
% |
3.76 |
3.73 |
|
RETURN ON ASSET |
% |
1.62 |
1.48 |
|
|
|
|
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LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.57 |
0.60 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.32 |
1.52 |
|
TIME INTEREST EARNED |
TIMES |
2.20 |
1.74 |
|
|
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|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
16.81 |
|
|
OPERATING PROFIT |
% |
(19.33) |
|
|
NET PROFIT |
% |
4.49 |
|
|
FIXED ASSETS |
% |
(27.90) |
|
|
TOTAL ASSETS |
% |
(4.02) |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
16.25 |
Acceptable |
Industrial Average |
21.87 |
|
Net Profit Margin |
0.89 |
Impressive |
Industrial Average |
(16.90) |
|
Return on Assets |
1.62 |
Impressive |
Industrial Average |
(5.07) |
|
Return on Equity |
3.76 |
Impressive |
Industrial Average |
(13.24) |
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 16.25%. When compared with
the industry average, the ratio of the company was lower. This indicated that
company was originated from the problems
with control over its costs.
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 0.89%
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
1.62%, 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 3.76%, 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 |
1.66 |
Deteriorated |
Industrial
Average |
8.81 |
|
Quick Ratio |
0.30 |
|
|
|
|
Cash Conversion Cycle |
158.95 |
|
|
|
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 1.66 times in 2010, increase from 1.53 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 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 0.3 times in 2010,
decrease from 0.62 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 159 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.57 |
Impressive |
Industrial
Average |
0.57 |
|
Debt to Equity Ratio |
1.32 |
Risky |
Industrial
Average |
1.28 |
|
Times Interest Earned |
2.20 |
Deteriorated |
Industrial
Average |
99.91 |
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 2.2 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 0.57 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 Downtrend
Times Interest Earned Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
31.66 |
Impressive |
Industrial
Average |
20.47 |
|
Total Assets Turnover |
1.81 |
Impressive |
Industrial
Average |
0.94 |
|
Inventory Conversion Period |
175.81 |
|
|
|
|
Inventory Turnover |
2.08 |
Deteriorated |
Industrial
Average |
21.64 |
|
Receivables Conversion Period |
33.70 |
|
|
|
|
Receivables Turnover |
10.83 |
Impressive |
Industrial
Average |
7.84 |
|
Payables Conversion Period |
50.55 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
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.