MIRA INFORM REPORT
|
Report Date : |
15.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
N.T.S.
STEEL GROUP PUBLIC
COMPANY LIMITED |
|
|
|
|
Registered Office : |
22nd Floor, Shinawatra 3 Building, 1010 Vibhavadee Rangsit Road, Jatujak, Bangkok 10900 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2011 |
|
|
|
|
Date of Incorporation : |
04.10.1988 |
|
|
|
|
Com. Reg. No.: |
0107536001273 |
|
|
|
|
Legal Form : |
Public
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer and Distributor of Round and Deformed Bars and Wire Rod |
|
|
|
|
No. of Employees
: |
590 persons |
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 |
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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 – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
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
N.T.S. STEEL
GROUP PUBLIC COMPANY
LIMITED
SUMMARY
BUSINESS
ADDRESS : 22nd FLOOR,
SHINAWATRA 3 BUILDING,
1010
VIBHAVADEE
RANGSIT ROAD,
JATUJAK,
BANGKOK 10900, THAILAND
TELEPHONE : [66]
2949-2949
FAX :
[66] 2949-2889
E-MAIL
ADDRESS : marketing@nts.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1988
REGISTRATION
NO. : 0107536001273 [ Former : BOR.MOR.JOR.201]
CAPITAL
REGISTERED : BHT.
4,628,010,864
CAPITAL
PAID - UP : BHT.
3,253,398,864
SHAREHOLDER’S PROPORTION : THAI :
0.33%
FOREIGN :
99.67%
FISCAL
YEAR CLOSING DATE : MARCH
31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR.
ARUN KUMAR CHOWDHARY,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 590
LINES OF
BUSINESS : ROUND
AND DEFORMED BARS
AND WIRE ROD MANUFACTURER AND
DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING
NORMALLY
REPUTATION : FAIR
FOR NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The
subject was established
on October 4,
1988 as a private limited
company under the
initial registered name “N.T.S. Steel
Group Co., Ltd.”.
On July 13, 1990 the
subject was granted
promotion privilege from the
Board of Investment for 7
years after starting
production of steel
products.
The
subject was listed
on the Stock
Exchange of Thailand
on December 4,
1992 and finally
converted its status
into a public
limited company under
the name N.T.S.
STEEL GROUP PUBLIC
COMPANY LIMITED on
October 22, 1993.
However, its name was
delisted from the
Stock Exchange of
Thailand in 2002.
In
October 1993, the
subject was seriously
affected by the
economic crisis within
the nation in
the year 1997
and subsequently underwent
the debt restructuring
under the Corporate
Debt Restructuring Advisory
Committee and the
business reorganization under
the Central Bankruptcy
Court on October
2, 2000. Later,
with respect to
the approval of
the creditors of NTS
and the order
of Central Bankruptcy
Court dated July
19, 2002, the
steel business merger
between NTS and
the other 2
companies of Siam
Cement group, namely
“The Siam Iron
and Steel [2001]
Ltd.” and “The
Siam Construction Steel
Co., Ltd.” was
initiated, and set
up the new company under
the name “Millennium Steel
Public Co., Ltd.”,
in order to
invest in the
3 companies. In
December 2006, “Millennium
Steel Public Co.,
Ltd.” had been changed the name
to “Tata Steel
[Thailand] Public Co.,
Ltd.”
It
achieved the 9001:2000
certificate for the
products quality management in
2004.
After
the subject was
stopped its production
activity temporarily in
2000, its activities were re-started
again in January
2003. Subject currently employs
approximate 590 staff.
The
subject’s registered address
is 22nd Flr.,
Shinawatra 3 Bldg.,
1010 Vibhavadee Rangsit Rd.,
Jatujak, Bangkok 10900, and
this is the company’s
current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Peeyush Gupta |
|
Indian |
43 |
|
Mr. Larptawee Senawongse |
|
Thai |
54 |
|
Mr. Visuth Anuphanmetha |
|
Thai |
56 |
|
Mr. Arun Kumar Chowdhary |
|
Indian |
52 |
|
Mr. Thana Ruengsilasingh |
|
Thai |
56 |
AUTHORIZED PERSON
Two of
the above directors
can jointly sign
on behalf of
the subject with
the company’s affixed.
MANAGEMENT
Mr. Arun
Kumar Chowdhary is
the Managing Director.
He
is Indian nationality
with the age
of 52 years
old.
BUSINESS OPERATIONS
The
subject’s activity is
a manufacturer various
kinds of steel
products, including round
and deformed bar, low & high carbon steel
wire rod, under
its own brand
name “NTS”.
PRODUCTION
CAPACITY
800,000
tons per annum
PURCHASE
[LOCAL]
100%
of raw material
is purchased locally
by Tata Steel
[Thailand] Public Co.,
Ltd., the parent
company.
SALES
[LOCAL]
100%
of its products
is sold locally
to Tata Steel
[Thailand] Public Co.,
Ltd.
PARENT
COMPANY
Tata
Steel [Thailand] Public
Co., Ltd.
Business
Type : Holding
company
Address :
1010 Vibhavadee Rangsit
Rd., Jatujak, Bangkok
10900.
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
Purchasing
terms are on
the credits of
30-60 days.
Selling
terms are on
the credits of
30-60 days.
BANKING
Kasikornbank Public Co., Ltd.
[Head Office
: 1 Kasikorn Lane, Rajburana
Rd., Rajburana, Bangkok]
Krung Thai
Bank Public Co.,
Ltd.
[Head Office
: 35 Sukhumvit
Rd., Klongtoeynua, Wattana,
Bangkok]
Bangkok Bank
Public Co., Ltd.
[Head Office
: 333 Silom Rd., Silom,
Bangrak, Bangkok]
EMPLOYMENT
The
subject employs approximately
590 office staff
and factory workers.
LOCATION
DETAILS
The
premise is rented
for operating an office
at the heading
address in commercial/ residential area.
Factory and
warehouse are located
on 800,000 square
meters of land,
at 351 Moo 6,
Hemaraj Chonburi Industrial
Estate, Bowin, Sriracha,
Chonburi 20230.
Tel : [66]
38 345-355-9, Fax : [66] 38
345-350
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
10,000,000.
COMMENT
The
subject is a subsidiary
of Tata Steel (Thailand) Public
Co., Ltd. who
is the biggest
steel maker in
Thailand at Bo Win, Chonburi province. The
principle activity is the
manufacturing and distributing
of round and deformed bars
and wire rod
for use in
steel, reinforced concrete
for construction industry.
The
growth in steel
industry in Thailand was
driven by the
expansion in auto segment,
which led to rise
in scrap prices,
essential raw material for
EAF manufacturer. The
production output was increased
and also continued enriching
its product mix.
The subject still
maintains the leadership
position in product
segments like Rebars and
Wire Rods.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 10 million,
divided into 100,000
shares of Bht. 100
each.
The
capital was increased
later as followings:
Bht. 1,000
million in April,
1990
Bht. 1,850
million in February , 1992
Bht. 2,115
million in October , 1992
Bht. 3,000
million in October,
1993
The
latest registered capital
is at Bht. 4,628,010,864 divided
into 3,856,675,720 shares
of Bht. 1.20 each
with current capital
paid-up of Bht.
3,253,398,864.
MAIN
SHAREHOLDERS : [as at
July 29, 2011]
at Bht. 3,253,398,864 of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Tata Steel [Thailand]
Public Co., Ltd. Nationality: Foreign Address : 1010
Vibhavadee Rangsit Rd.,
Jatujak, Bangkok |
1,913,692,212 |
70.58 |
|
Mr. Sawas Horrungruang Nationality: Thai Address : 9
Ramkhamhaeng Rd., Suanluang,
Bangkok |
1,667,000 |
0.06 |
|
Ms. Siriporn Horrungruang Nationality: Thai Address : 351/1
Silom Rd., Silom,
Bangrak, Bangkok |
1,000,000 |
0.04 |
|
Ms. Orn-anong Suriyapanumas Nationality: Thai Address : 37/4
Arun Amarin Rd.,
Bangkoknoi, Bangkok |
1,000,000 |
0.04 |
|
Mr. Sunthorn Chaylaemlak Nationality: Thai Address : 245/66
Klongbangkokyai Rd., Pasicharoen, Bangkok |
1,000,000 |
0.04 |
|
Mr. Sawai Horrungruang Nationality: Thai Address : 114/3
Moo 1, Laemfapha,
Muang |
1,000,000 |
0.04 |
|
Gamma Capital Mutual
Fund Nationality: Thai Address : Silom
Rd., Silom, Bangrak,
Bangkok |
897,800 |
0.03 |
|
Ms. Suwanna Luangtrakulchai Nationality: Thai Address : 500
Ploenchit Rd., Lumpini,
Pathumwan, Bangkok |
150,400 |
0.01 |
|
Others |
790,758,308 |
29.16 |
Total shareholders :
839
Share
Structure [as
at July 29,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
805 |
8,888,108 |
0.33 |
|
Foreign |
34 |
2,702,277,612 |
99.67 |
|
Total |
839 |
2,711,165,720 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO. :
Mr. Montree Panichkul No.
3451
BALANCE SHEET [BAHT]
The
latest financial figures
published for March
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
103,728,974 |
60,376,914 |
|
Trade Account Receivable - Related company |
261,514,595 |
377,978,947 |
|
- Other company |
1,027,886,958 |
282,138,347 |
|
Other Receivable-Related
Company |
17,643,481 |
5,650,919 |
|
Inventories |
4,152,504,831 |
4,124,788,550 |
|
Deferred Value Added Tax |
36,269,329 |
307,227,564 |
|
Other Current Assets
|
37,409,784 |
95,456,161 |
|
Total Current Assets
|
5,636,957,952 |
5,253,617,402 |
|
|
|
|
|
Fixed Assets |
9,042,289,834 |
9,694,679,368 |
|
Deferred Income Tax |
701,766,377 |
478,962,080 |
|
Other Assets |
50,37,338 |
49,163,731 |
|
Total Assets |
15,431,387,501 |
15,476,422,581 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Bank Overdraft & Short-term Loan
from Financial Institution |
- |
2,263,961 |
|
Trade Account Payable |
|
|
|
- Related company |
2,708,804,454 |
1,016,782,140 |
|
- Other company |
318,438,177 |
1,623,072,597 |
|
Other Payable-Related Company |
16,031,242 |
45,165,966 |
|
Short-term Loan from Parent
Company |
3,343,957,371 |
2,848,352,295 |
|
Current Portion of Long-term Loan from Parent Company |
780,000,000 |
755,920,381 |
|
Other Current Liabilities |
505,551,888 |
598,579,162 |
|
Total Current Liabilities |
7,672,783,132 |
6,890,136,502 |
|
|
|
|
|
Long-term Loan from Parent
Company |
5,620,000,000 |
5,222,686,286 |
|
Debt Re-structure Liabilities
|
186,903,192 |
186,903,192 |
|
Estimation Liabilities for Benefit Employees |
38,306,794 |
30,359,606 |
|
Total Liabilities |
13,517,993,118 |
12,330,085,586 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 1.20
par value authorized, issued
and fully paid share
capital 3,856,675,720 shares |
4,628,010,864 |
4,628,010,864 |
|
Capital Paid |
3,253,398,864 |
3,253,398,864 |
|
Translation Adjustment |
2,500,000 |
2,000,000 |
|
Copyright |
57,275,500 |
57,275,500 |
|
Retained Earnings Appropriated for Statutory Reserve |
42,699,155 |
42,699,155 |
|
Unappropriated |
1,442,479,136 |
[209,036,524] |
|
Total Shareholders' Equity |
1,913,394,383 |
3,146,336,995 |
|
Total Liabilities & Shareholders' Equity |
15,431,387,501 |
15,476,422,581 |
PROFIT & LOSS ACCOUNT
|
Sale |
2011 |
2010 |
|
|
|
|
|
Sales |
27,502,658,213 |
12,848,142,418 |
|
Gain on Exchange Rate |
- |
28,475,240 |
|
Other Income |
22,037,183 |
19,780,826 |
|
Total Sales |
27,524,695,396 |
12,896,398,484 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
28,329,657,646 |
13,196,964,668 |
|
Selling Expenses |
202,231,127 |
59,394,044 |
|
Administrative Expenses |
102,875,571 |
138,921,973 |
|
Loss from Exchange
Rate |
35,924,232 |
- |
|
Total Expenses |
28,670,688,576 |
13,395,280,685 |
|
Loss Before Financial Cost &
Income Tax |
[1,145,993,180] |
[498,882,201] |
|
Financial Cost |
[310,253,729] |
[261,320,135] |
|
|
|
|
|
Loss Before Benefit for
Income Tax |
[1,456,246,909] |
[760,202,336] |
|
Benefit for Income Tax |
[222,804,297] |
[205,100,720] |
|
Net Profit / [Loss] |
[1,233,442,612] |
[555,101,616] |
fINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.73 |
0.76 |
|
QUICK RATIO |
TIMES |
0.18 |
0.11 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
3.04 |
1.33 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.78 |
0.83 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
53.50 |
114.08 |
|
INVENTORY TURNOVER |
TIMES |
6.82 |
3.20 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
13.64 |
8.02 |
|
RECEIVABLES TURNOVER |
TIMES |
26.76 |
45.54 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
4.10 |
44.89 |
|
CASH CONVERSION CYCLE |
DAYS |
63.04 |
77.21 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
103.01 |
102.71 |
|
SELLING & ADMINISTRATION |
% |
1.11 |
1.54 |
|
INTEREST |
% |
1.13 |
2.03 |
|
GROSS PROFIT MARGIN |
% |
(2.93) |
(2.34) |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(4.17) |
(3.88) |
|
NET PROFIT MARGIN |
% |
(4.48) |
(4.32) |
|
RETURN ON EQUITY |
% |
(64.46) |
(17.64) |
|
RETURN ON ASSET |
% |
(7.99) |
(3.59) |
|
EARNING PER SHARE |
BAHT |
(0.45) |
(0.20) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.88 |
0.80 |
|
DEBT TO EQUITY RATIO |
TIMES |
7.06 |
3.92 |
|
TIME INTEREST EARNED |
TIMES |
(3.69) |
(1.91) |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
114.06 |
|
|
OPERATING PROFIT |
% |
129.71 |
|
|
NET PROFIT |
% |
(122.20) |
|
|
FIXED ASSETS |
% |
(6.73) |
|
|
TOTAL ASSETS |
% |
(0.29) |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
(2.93) |
Deteriorated |
Industrial
Average |
20.73 |
|
Net Profit Margin |
(4.48) |
Deteriorated |
Industrial
Average |
(7.62) |
|
Return on Assets |
(7.99) |
Deteriorated |
Industrial
Average |
(1.09) |
|
Return on Equity |
(64.46) |
Deteriorated |
Industrial
Average |
(0.52) |
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 -2.93%. 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 -4.48%,
higher figure when 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. When compared with the
industry average, it was lower, the company's figure is -7.99%.
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. When compared with the
industry average, it was lower, the company's figure is -64.46%.
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 |
0.73 |
Risky |
Industrial Average |
49.63 |
|
Quick Ratio |
0.18 |
|
|
|
|
Cash Conversion Cycle |
63.04 |
|
|
|
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 0.73 times in 2011, decreased from 0.76 times, then the company may not be
efficiently using its current assets. 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 0.18 times in 2011,
increased from 0.11 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 64 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.88 |
Impressive |
Industrial
Average |
1.67 |
|
Debt to Equity Ratio |
7.06 |
Risky |
Industrial
Average |
1.79 |
|
Times Interest Earned |
(3.69) |
Risky |
Industrial
Average |
239.19 |
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 -3.7 lower than 1, so the company is not generating
enough cash from EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.88 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 Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
3.04 |
Deteriorated |
Industrial
Average |
102.45 |
|
Total Assets Turnover |
1.78 |
Impressive |
Industrial
Average |
1.72 |
|
Inventory Conversion Period |
53.50 |
|
|
|
|
Inventory Turnover |
6.82 |
Deteriorated |
Industrial
Average |
21.46 |
|
Receivables Conversion Period |
13.64 |
|
|
|
|
Receivables Turnover |
26.76 |
Impressive |
Industrial
Average |
21.35 |
|
Payables Conversion Period |
4.10 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.58 |
|
UK Pound |
1 |
Rs.82.97 |
|
Euro |
1 |
Rs.69.89 |
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.