MIRA INFORM REPORT
|
Report Date : |
16.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
MENAM
STAINLESS WIRE PUBLIC
COMPANY LIMITED |
|
|
|
|
Registered Office : |
299 Moo
6, T. Bangpreang, A. Bangbor,
Samutprakarn 10560 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
28.09.1989 |
|
|
|
|
Com. Reg. No.: |
0107550000262 |
|
|
|
|
Legal Form : |
Public
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, distributor and exporter of Stainless steel
wire and related
Products |
|
|
|
|
No. of Employees
: |
200 persons |
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 – 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
MENAM STAINLESS
WIRE PUBLIC COMPANY
LIMITED
SUMMARY
BUSINESS
ADDRESS : 299
MOO 6, T. BANGPREANG, A. BANGBOR,
SAMUTPRAKARN 10560
TELEPHONE : [66] 2725-3999
FAX : [66] 2725-3939,
2728-3949
E-MAIL
ADDRESS : info@menamstainless.com
sales@menamstainless.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1989
REGISTRATION
NO. : 0107550000262 [Former
: 9202/2532]
CAPITAL REGISTERED : BHT.
299,000,000
CAPITAL PAID-UP : BHT. 224,000,000
SHAREHOLDER’S PROPORTION : THAI :
85%
FOREIGN : 15%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MS.
RUNGRAT SIRIRATANAPANICH, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 200
LINES
OF BUSINESS : STAINLESS STEEL
WIRE AND RELATED
PRODUCTS
MANUFACTURER, DISTRIBUTOR
AND EXPOTER
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 September 28,
1989 as a
private limited company under
the name style
“Menam Stainless Wire
Ltd.,” by Thai
and foreign groups,
in order to
manufacture wide range
of stainless steel
wire and related
products.
It has
been granted a
promotional privilege by Thailand’s
Board of Investment
for the production.
The subject also achieved World Most
Recognition Standard,
Japanese Industrial Standard
(JIS) and the
ISO 9001:2000 certification
from SGS YARSLEY
INTERNATIONAL, on March
22, 2002.
On
December 27, 2007, subject’s
status was converted
to a public
limited company under
the name MENAM STAINLESS WIRE
PUBLIC COMPANY LIMITED. It currently
employs approximate 200
staff.
The subject’s registered address
was initially located at 429 Moo 17,
Bangplee Industrial Estate,
Bangsaothong, Samutprakarn 10540.
In 2009, its
registered address was
relocated to 299
Moo 6, T. Bangpreang, A. Bangbor,
Samutprakarn 10560, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms. Rungrat Siriratanapanich |
[x] |
Thai |
40 |
|
Mr. Visith Kittiwatanakul |
[x] |
Thai |
64 |
|
Mr. Chinkui Saelim |
[x] |
Taiwanese |
72 |
|
Mr. Atipong Viwattanapanich |
|
Thai |
41 |
|
Mr. Jamorn Rakvanichpong |
|
Thai |
45 |
|
Ms. Vilailuck Sakulpakdee |
|
Thai |
58 |
|
Mr. Paisal Srisa-an |
|
Thai |
55 |
|
Mr. Piriya Kittiwatanakul |
|
Thai |
31 |
|
Mr. Kasemchai Nithiwannakul |
|
Thai |
63 |
AUTHORIZED PERSON
Two of the mentioned directors
[x] can jointly sign on behalf of the subject with company’s
affixed.
MANAGEMENT
Ms. Rungrat Siriratanapanich is
the Managing Director.
She is Thai
nationality with the
age of 40
years old.
Mr. Vichai Chaemchantuk is
the Factory Manager.
He is Thai
nationality.
Mr. Nara Paneenararat is
the Sales & Marketing Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is engaged in stainless steel cold drawn wire and straightened
bar manufacturing. Its
main 5 products are
stainless steel wire,
stainless steel bar,
stainless profile wire,
stainless steel welding consumable MIG and stainless steel welding
consumable TIG.
PRODUCTION CAPACITY
6,000 metric tons
per year.
PURCHASE
Most of raw materials, mainly
steel sheet and chemical are
purchased from local
suppliers and agents,
the remaining is imported
from Japan, Taiwan, Republic of China, Australia
and Germany.
SALES
80% of the
products is sold
by wholesale to
dealers and manufacturers.
EXPORT
20% of
its products is
exported to Taiwan,
Republic of China, Singapore,
Japan, United Kingdom, France,
Russia, Turkey, U.S.A., Argentina, Chile, Germany, Italy, Other European
and Middle East
countries.
SUBSIDIARY AND AFFILIATED
COMPANY
Menam Machanica Co., Ltd.
Business Type : Manufacturer of
steel structure.
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.
BUSINESS TRANSACTION
The products are
sold both by
cash and credit
with the maximum
credit given at
30-60 days. The subject is not found to have problem
on its account
receivable.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately
200 staff. [office, sales
staff and factory workers]
LOCATION
DETAILS
The premise is rented for administrative office, factory and
warehouse at the
heading address. Premise
is located in
industrial area.
REMARK
MAXIMUM
CREDIT SHOULD BE
AT US$ 1,000,000.
COMMENT
The
company has been
established over 22 years
of continual research,
development and improvement. Subject is
now recognized as
a world leader
of Stainless Steel
Wire and Bar
produce with products
distributed across the world.
The subject’s business performance ended of the
year 2010 was
solid. Meanwhile, its
business this year
has steadily expanded
in relation to
strong consumption from
industrial sector.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 60,000,000
divided into 600,000
shares of Bht.100
each.
The
capital was increased
later as follows:
Bht. 224,000,000
on November 22,
2007
Bht. 299,000,000
on January 11,
2008
The
latest registered capital
was increased to
Bht. 299 million,
divided into 299,000,000
shares of Bht.
1 each.
MAIN
SHAREHOLDERS : [as at
April 30, 2011]
at Bht. 224,000,000
of capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Rungrat Siriratanapanich Nationality: Thai Address : 70/17
Ramkhamhaeng 164 Rd.,
Minburi, Bangkok |
55,218,600 |
24.65 |
|
Ms. Monsalai Rakvanichpong Nationality: Thai Address : 37/8
Ploenchit Rd., Lumpini,
Pathumwan, Bangkok |
34,920,000 |
15.59 |
|
Mrs. Thanaporn
Pichayachittipong Nationality: Thai Address : 21/3
Trok Rongnamkaeng, Taladnoi,
Samphantawong, Bangkok |
24,320,000 |
10.86 |
|
Mr. Chinkui Saelin Nationality: Taiwanese Address : 64
Kwangmin Rd., Wumeichen,
Yinninzen,
Taiwan |
22,400,000 |
10.00 |
|
Mr. Visith Kittiwatanakul Nationality: Thai Address : 88/3-90
Samphantawong, Bangkok 10100 |
13,440,000 |
6.00 |
|
Ms. Chialing Saelin Nationality: Taiwanese Address : 27
Hoping Rd., Huwei,
Yunling, Taiwan |
11,200,000 |
5.00 |
|
Mr. Pairat Sithicharoentham Nationality: Thai Address : 152/148
Moo 1, Bangkaenua, Bangkae, Bangkok |
5,400,000 |
2.41 |
|
Ms. Vinita Kittiwatanakul Nationality: Thai Address : 88/3-90
Samphantawong, Bangkok 10100 |
5,261,400 |
2.35 |
|
|
|
|
|
Mr. Peera Kittiwatanakul Nationality: Thai Address : 88/3-90
Samphantawong, Bangkok 10100
|
5,226,700 |
2.33 |
|
Mr. Piriya Kittiwatanakul Nationality: Thai Address : 88/3-90
Samphantawong, Bangkok 10100
|
5,226,700 |
2.33 |
|
Mr. Nathapol Kittiwatanakul Nationality: Thai Address : 21/3
Trok Rongnamkaeng, Taladnoi,
Samphantawong, Bangkok |
5,226,700 |
2.33 |
|
Ms. Suthinee Kittiwatanakul Nationality: Thai Address :
21/3 Trok Rongnamkaeng, Taladnoi,
Samphantawong, Bangkok |
5,226,700 |
2.33 |
|
Others |
30,933,200 |
13.82 |
Total Shareholders : 30
Share Structure [as
at April 30,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
28 |
190,400,000 |
85.00 |
|
Foreign |
2 |
33,600,000 |
15.00 |
|
Total |
30 |
224,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Athipong Athipongsakul
No. 3500
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalents |
16,661,118.46 |
3,564,187.71 |
|
Trade Accounts Receivable |
188,072,945.99 |
149,235,529.96 |
|
Inventories |
375,943,192.07 |
286,487,430.56 |
|
Refundable Income Tax |
- |
10,928,542.79 |
|
Other Current Assets
|
1,079,456.27 |
2,414,110.53 |
|
|
|
|
|
Total Current Assets
|
581,756,712.79 |
452,629,801.55 |
|
Cash at Bank
pledged as a
Collateral |
- |
32,311,339.95 |
|
Deposit Assets |
1,817,543.15 |
853,140.09 |
|
Fixed Assets |
491,408,162.14 |
490,240,168.52 |
|
Intangible Assets |
4,651,459.26 |
4,804,210.25 |
|
Other Assets |
86,240.00 |
54,000.00 |
|
Total Assets |
1,079,720,117.34 |
980,892,660.36 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Short-term Loan from
Financial Institution |
442,342,743.53 |
488,390,750.46 |
|
Trade Accounts Payable |
34,607,155.94 |
32,308,743.81 |
|
Hire-purchase Payable of Assets |
1,943,125.10 |
6,926,676.86 |
|
Current Portion of
Long-term Loan from Financial Institution |
50,603,638.58 |
49,463,140.68 |
|
Accrued Income Tax |
22,446,978.52 |
- |
|
Other Current Liabilities |
33,137,255.02 |
38,852,182.84 |
|
|
|
|
|
Total Current Liabilities |
585,080,896.69 |
615,941,494.65 |
|
Long-term Loan from Financial
Institution |
161,722,657.89 |
148,062,996.10 |
|
Total Liabilities |
746,803,554.58 |
764,004,490.75 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 1
par value Authorized &
issued share capital
299,000,000 shares |
299,000,000.00 |
299,000,000.00 |
|
|
|
|
|
Capital Paid |
224,000,000.00 |
224,000,000.00 |
|
Retained Earning Appropriated for Statutory Reserve |
20,416,794.89 |
14,615,375.23 |
|
Unappropriated |
88,499,767.87 |
[21,727,205.62] |
|
Total Shareholders' Equity |
332,916,562.76 |
216,888,169.61 |
|
Total Liabilities & Shareholders' Equity |
1,079,720,117.34 |
980,892,660.36 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales |
1,084,849,594.29 |
714,710,008.16 |
|
Gain on Exchange
Rate |
37,634,327.34 |
2,449,053.27 |
|
Other Income |
12,553,843.75 |
6,271,655.96 |
|
Total Sales |
1,135,037,765.38 |
723,430,717.39 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
889,332,618.14 |
599,645,416.36 |
|
Selling Expenses |
22,343,138.30 |
15,643,131.41 |
|
Administrative Expenses |
36,040,437.81 |
30,291,688.56 |
|
Remuneration’s Management |
16,178,723.00 |
13,565,029.00 |
|
Loss on Decrement in Value of Inventories |
7,341,250.03 |
33,295,467.76 |
|
Total Expenses |
971,236,167.28 |
692,440,733.09 |
|
|
|
|
|
Profit before Financial
Cost & Income Tax |
163,801,598.10 |
30,989,984.30 |
|
Financial Cost |
[25,248,477.02] |
[26,627,823.74] |
|
Profit before Income Tax |
138,553,121.08 |
4,362,160.56 |
|
Income Tax |
[22,524,727.93] |
- |
|
|
|
|
|
Net Profit / [Loss] |
116,028,393.15 |
4,362,160.56 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.99 |
0.73 |
|
QUICK RATIO |
TIMES |
0.35 |
0.25 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.21 |
1.46 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.00 |
0.73 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
154.29 |
174.38 |
|
INVENTORY TURNOVER |
TIMES |
2.37 |
2.09 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
63.28 |
76.21 |
|
RECEIVABLES TURNOVER |
TIMES |
5.77 |
4.79 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
14.20 |
19.67 |
|
CASH CONVERSION CYCLE |
DAYS |
203.37 |
230.93 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
81.98 |
83.90 |
|
SELLING & ADMINISTRATION |
% |
5.38 |
6.43 |
|
INTEREST |
% |
2.33 |
3.73 |
|
GROSS PROFIT MARGIN |
% |
22.65 |
17.32 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
15.10 |
4.34 |
|
NET PROFIT MARGIN |
% |
10.70 |
0.61 |
|
RETURN ON EQUITY |
% |
34.85 |
2.01 |
|
RETURN ON ASSET |
% |
10.75 |
0.44 |
|
EARNING PER SHARE |
BAHT |
0.52 |
0.02 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.69 |
0.78 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.24 |
3.52 |
|
TIME INTEREST EARNED |
TIMES |
6.49 |
1.16 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
51.79 |
|
|
OPERATING PROFIT |
% |
428.56 |
|
|
NET PROFIT |
% |
2,559.88 |
|
|
FIXED ASSETS |
% |
0.24 |
|
|
TOTAL ASSETS |
% |
10.08 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
22.65 |
Impressive |
Industrial Average |
17.31 |
|
Net Profit Margin |
10.70 |
Impressive |
Industrial Average |
(2.43) |
|
Return on Assets |
10.75 |
Impressive |
Industrial Average |
1.96 |
|
Return on Equity |
34.85 |
Impressive |
Industrial Average |
7.93 |
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 22.65%. 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 10.7%, 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. Return on Assets ratio is
10.75%, 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 34.85%, 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 |
0.99 |
Risky |
Industrial
Average |
23.89 |
|
Quick Ratio |
0.35 |
|
|
|
|
Cash Conversion Cycle |
203.37 |
|
|
|
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 0.99 times in 2010, increased from 0.73 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 0.35 times in 2010,
increased from 0.25 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 204 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.69 |
Impressive |
Industrial
Average |
0.97 |
|
Debt to Equity Ratio |
2.24 |
Risky |
Industrial
Average |
2.02 |
|
Times Interest Earned |
6.49 |
Deteriorated |
Industrial
Average |
138.77 |
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 6.49 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 0.69 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 |
2.21 |
Deteriorated |
Industrial
Average |
73.16 |
|
Total Assets Turnover |
1.00 |
Acceptable |
Industrial
Average |
1.69 |
|
Inventory Conversion Period |
154.29 |
|
|
|
|
Inventory Turnover |
2.37 |
Deteriorated |
Industrial
Average |
18.72 |
|
Receivables Conversion Period |
63.28 |
|
|
|
|
Receivables Turnover |
5.77 |
Deteriorated |
Industrial
Average |
18.70 |
|
Payables Conversion Period |
14.20 |
|
|
|
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.54.24 |
|
UK Pound |
1 |
Rs.83.77 |
|
Euro |
1 |
Rs.70.46 |
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.