MIRA
INFORM REPORT
|
Report Date : |
21.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
VEE RUBBER CORPORATION LTD. |
|
|
|
|
Registered Office : |
924 Rama 9 Road, Bangkapi, Huaykwang, Bangkok 10320 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
05.01.2009 |
|
|
|
|
Com. Reg. No.: |
0105552000071 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Exporter and Distributor of Automobile Tyres and Inner Tubes |
|
|
|
|
No. of Employees : |
2,000 |
RATING & COMMENTS
|
MIRAs 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 30, 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
VEE
RUBBER CORPORATION LTD.
SUMMARY
BUSINESS
ADDRESS : 924
RAMA 9 ROAD,
BANGKAPI,
HUAYKWANG, BANGKOK
10320
TELEPHONE : [66] 2719-6644-5
FAX :
[66] 2719-6620,
2719-6661-2
E-MAIL
ADDRESS : info@veerubber.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2009
REGISTRATION
NO. : 0105552000071
CAPITAL REGISTERED : BHT. 249,000,000
CAPITAL PAID-UP : BHT.
249,000,000
SHAREHOLDERS PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
VITORN SUKARNCHANAPONG, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 2,000
LINES
OF BUSINESS : AUTOMOBILE TYRES
AND INNER TUBES
MANUFACTURER, EXPORTER
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 January
5, 2009 as a
private limited company
under the name style
VEE RUBBER CORPORATION LTD.,
by Thai
group, Sukarnchanapong family,
under the merger
between Vee Rubber
International Co., Ltd.,
Registration No. 0105530020207
and Vee Rubber
Company Limited., Registration
No. 0105520010276, in
order to manufacture wide
range of automotive tires and
inner tube to
both domestic and
export markets. Subject
currently employs 2,000
staff.
The subject is
a member of
Vee Rubber Group
of companies.
The subjects registered
address is 924
Rama 9 Rd., Bangkapi,
Huaykwang, Bangkok 10320,
and this the
subjects current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Vitorn Sukarnchanapong |
|
Thai |
62 |
|
Mr. Vichit Sukarnchanapong |
|
Thai |
56 |
|
Mr. Veerapol Sukarnchanapong |
|
Thai |
56 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with companys affixed.
MANAGEMENT
Mr. Vitorn Sukarnchanapong is
the Managing Director.
He is Thai
nationality with the
age of 62
years old.
Mr.
Vichit Sukarnchanapong is
the Deputy Managing
Director and Marketing
Manager.
He is Thai
nationality with the
age of 56
years old.
Mr. Pinyo Patradilok
is the Sales
Manager.
He is Thai
nationality.
Mr. Tanate Watanapongsakul is
the Purchasing Manager.
He is Thai
nationality.
Mr. Nitas Kongmoon
is the Factory
Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subjects activity
is a manufacturer of
automobile tyre and
inner tube as
followings: tyres for
go-kart, motorcycle, bicycle,
mountain bike, trailer,
ATV car, passenger car
and truck, under
its own brands
VEE RUBBER and
V-TECH.
PURCHASE
Raw materials, chemical
and nylon cord
are imported from
Japan, India, Malaysia,
Korea, Taiwan and
Republic of China,
as well as
are purchased from
local suppliers.
EXPORT [COUNTRY]
80%
of its products
is exported to
European countries, United
States of America, Canada,
Latin America, Japan,
Singapore, Australia, Malaysia
and South Africa.
SALES [LOCAL]
20% of its
products is sold
locally to wholesalers
and dealers.
MAJOR CUSTOMER
Vee Karnchana Mart
Co., Ltd.
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.
SUBSIDIARIES &
AFFILIATED COMPANIES
Vee Rubber Group
of companies comprising:
Vee Tyre and
Rubber Co., Ltd.
Business Type : Manufacturer
of tyres for
truck, motorcycle and
bicycle
Vee Karnchana Mart
Co., Ltd.
Business Type : Distributor
of automobile tyres
Vee Rubber [Petchaburi]
Co., Ltd.
Business Type : Manufacturer
of tyres
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Local bills are
paid 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
Bangkok Bank Public
Co., Ltd.
[Head Office :
333 Silom Rd.,
Silom, Bangrak, Bangkok
10500]
Bank
of Ayudhya Public
Co., Ltd.
[Head Office : 1222
Rama 3 Rd., Bangpongpang, Yannawa,
Bangkok 10120]
TMB Bank Public
Co., Ltd.
[Head Office : 3000
Phaholyothin Rd., Jompol,
Jatujak, Bangkok]
EMPLOYMENT
The subject employs
approximately 2,000 staff.
[office, sales staff
and factory workers]
LOCATION DETAILS
The premise is rented for administrative office in a 7 storey building at
the heading address.
Premise is located in
commercial/residential area.
Factories are as
follows:
Factory I : 87/5
Moo 5, T.
Bankoah, A. Muang,
Samutsakorn 74000
Tel.
[66] 34 422-908,
34 422-809, 34
424-062.
Factory II : 22/3
Moo 2, Bangpraew-Phrapratone Rd.,
T. Chamongkol,
A. Muang, Samutsakorn
74000.
Factory III :
14/7 Moo 2,
Bangpraew-Phrapratone Rd., T. Chamongkol,
A. Muang, Samutsakorn
74000.
Factory IV : 159/1
Moo 1, T. Khaoyoy,
A. Khaoyoy, Petchburi 76140.
Factory V : 94/1
Moo 1, T. Khaoyoy,
A. Khaoyoy, Petchburi 76140.
REMARK
MAXIMUM CREDIT SHOULD
BR GRANTED AT
US$ 1,000,000.
COMMENT
With
long experience in manufacturing automotive
tyres and inner
tubes for more than
30 years, the subject is doing
solid business and growth remains strong
in line with improvement of
automotive industry.
The company is regarded
as a world leader
in the manufacture
of vehicle tyres. The
company produces tyres
of all shapes
and sizes from bikes
to large commercial
vehicles and trucks.
At present, its
products lead to
even greater demand
and the company
enjoyed constant growth
not only in Thailand
but also overseas.
FINANCIAL INFORMATION
The capital was
registered at Bht.
2,000,000 divided into
2,000 shares of
Bht. 1,000 each.
The capital was
increased later as
followings:
Bht. 3,000,000
on July 31,
1980
Bht. 10,000,000
on May 23,
1985
Bht. 80,000,000
on August 14,
1996
Bht. 92,000,000
on May 27,
2000
Bht. 95,000,000
on June 26,
2008
The latest registered
capital was increased
to Bht. 249,000,000
divided into 2,490,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE
[as at
April 30, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Vitorn Sukarnchanapong Nationality: Thai Address : 142/37
North Sathorn Rd.,
Silom,
Bangrak, Bangkok |
1,424,019 |
57.19 |
|
Mr. Veerapol Sukarnchanapong Nationality: Thai Address : 142/35
North Sathorn Rd., Silom,
Bangrak, Bangkok |
425,117 |
17.07 |
|
Mr. Vichit Sukarnchanapong Nationality: Thai Address : 488/60
Soi Sukhumvit 55,
Klongtonnua,
Wattana, Bangkok |
425,117 |
17.07 |
|
Mr. Viwat Sukarnchanapong Nationality: Thai Address : 90
Moo 7, T. Pangla,
A. Sadoaw, Songkhla |
194,985 |
7.83 |
|
|
|
|
|
Mrs. Inthira Sukarnchanapong Nationality: Thai Address : 108
Niphat-uthit 1 Rd., A. Hadyai, Songkhla |
17,573 |
0.71 |
|
Mrs. Suree Sukarnchanapong Nationality: Thai Address : 36/18
Moo 16, Bangkaew,
Bangplee,
Samutprakarn |
3,189 |
0.13 |
Total Shareholders : 6
Share Structure [as
at April 30,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
6 |
2,490,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
6 |
2,490,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Orachorn Sarasak No.
2814
BALANCE SHEET [BAHT]
The latest
financial figures published
for December 31,
2010 & 2009 were :
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalents |
50,341,493.04 |
50,038,057.56 |
|
Short-term Investment |
376,710.44 |
- |
|
Trade Account Receivable
|
824,652,780.97 |
728,788,495.58 |
|
Short-term Loan to
Person or Related
Company |
37,052,037.05 |
49,759,894.15 |
|
Inventories |
793,177,074.41 |
544,922,101.71 |
|
Other Current Assets |
12,895,704.76 |
50,531,333.96 |
|
Total Current Assets
|
1,718,495,800.67 |
1,424,039,882.96 |
|
Other Long-term Investment |
93,208,439.22 |
93,208,439.22 |
|
Fixed Assets |
504,474,478.93 |
484,626,500.07 |
|
Other Assets |
70,028,757.25 |
88,190,336.17 |
|
Total Assets |
2,386,207,476.07 |
2,090,065,158.42 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft & Short-term Loan from Financial Institution |
1,313,690,736.60 |
1,028,744,879.46 |
|
Trade Account Payable |
322,695,688.01 |
285,524,626.10 |
|
Current Portion of
Long-term Loan |
21,380,000.00 |
22,000,000.00 |
|
Other Current Liabilities |
49,609,961.47 |
46,956,874.36 |
|
Total Current Liabilities |
1,707,376,386.08 |
1,383,226,379.92 |
|
Other Long-term Loan |
91,481.05 |
21,471,481.05 |
|
Other Liabilities |
288,026.26 |
958,324.34 |
|
Total Liabilities |
1,707,755,893.39 |
1,405,656,185.31 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 2,490,000 shares |
249,000,000.00 |
249,000,000.00 |
|
Capital Paid |
249,000,000.00 |
249,000,000.00 |
|
Statutory Reserve |
6,000,000.00 |
6,000,000.00 |
|
Retained Earning -
Unappropriated |
423,451,582.68 |
429,408,973.11 |
|
Total Shareholders' Equity |
678,451,582.68 |
684,408,973.11 |
|
Total Liabilities & Shareholders' Equity |
2,386,207,476.07 |
2,090,065,158.42 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales |
2,864,892,511.63 |
2,677,467,735.72 |
|
Other Income |
9,998,321.25 |
6,631,246.22 |
|
Total Revenues |
2,874,890,832.88 |
2,684,098,981.94 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,601,946,826.25 |
2,434,635,275.16 |
|
Selling Expenses |
99,988,121.64 |
86,448,085.86 |
|
Administrative Expenses |
103,392,461.55 |
82,699,590.29 |
|
Total Expenses |
2,805,327,409.44 |
2,603,782,951.31 |
|
Profit / [Loss] Before Financial Cost & Income Tax |
69,563,423.44 |
80,316,030.63 |
|
Financial Cost |
[49,338,442.10] |
[52,942,395.80] |
|
Profit / [Loss] Before Income
Tax |
20,224,981.34 |
27,373,634.83 |
|
Income Tax |
[9,182,371.77] |
[10,516,419.25] |
|
Net Profit / [Loss] |
11,042,609.57 |
16,857,215.58 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.01 |
1.03 |
|
QUICK RATIO |
TIMES |
0.53 |
0.60 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
5.68 |
5.52 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.20 |
1.28 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
111.27 |
81.69 |
|
INVENTORY TURNOVER |
TIMES |
3.28 |
4.47 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
105.06 |
99.35 |
|
RECEIVABLES TURNOVER |
TIMES |
3.47 |
3.67 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
45.27 |
42.81 |
|
CASH CONVERSION CYCLE |
DAYS |
171.06 |
138.24 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
90.82 |
90.93 |
|
SELLING & ADMINISTRATION |
% |
7.10 |
6.32 |
|
INTEREST |
% |
1.72 |
1.98 |
|
GROSS PROFIT MARGIN |
% |
9.53 |
9.32 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.43 |
3.00 |
|
NET PROFIT MARGIN |
% |
0.39 |
0.63 |
|
RETURN ON EQUITY |
% |
1.63 |
2.46 |
|
RETURN ON ASSET |
% |
0.46 |
0.81 |
|
EARNING PER SHARE |
BAHT |
4.43 |
6.77 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.72 |
0.67 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.52 |
2.05 |
|
TIME INTEREST EARNED |
TIMES |
1.41 |
1.52 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
7.00 |
|
|
OPERATING PROFIT |
% |
(13.39) |
|
|
NET PROFIT |
% |
(34.49) |
|
|
FIXED ASSETS |
% |
4.10 |
|
|
TOTAL ASSETS |
% |
14.17 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
9.53 |
Acceptable |
Industrial
Average |
15.79 |
|
Net Profit Margin |
0.39 |
Impressive |
Industrial
Average |
(0.14) |
|
Return on Assets |
0.46 |
Deteriorated |
Industrial
Average |
1.38 |
|
Return on Equity |
1.63 |
Impressive |
Industrial
Average |
(36.51) |
Gross Profit Margin used to assess a firm's financial health by revealing
the proportion of money left over from revenues 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 9.53%. When compared with
the industry average, the ratio of the company was lower, 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 0.39%,
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 0.46%.
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 1.63%, 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 |
1.01 |
Deteriorated |
Industrial
Average |
12.13 |
|
Quick Ratio |
0.53 |
|
|
|
|
Cash Conversion Cycle |
171.06 |
|
|
|
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 1.01 times in 2010, decreased from 1.03 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 0.53 times in 2010,
decreased from 0.6 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 172 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.72 |
Impressive |
Industrial
Average |
0.77 |
|
Debt to Equity Ratio |
2.52 |
Risky |
Industrial
Average |
2.13 |
|
Times Interest Earned |
1.41 |
Deteriorated |
Industrial
Average |
34.20 |
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 1.41 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 0.72 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 |
5.68 |
Deteriorated |
Industrial
Average |
7,812.21 |
|
Total Assets Turnover |
1.20 |
Acceptable |
Industrial
Average |
1.67 |
|
Inventory Conversion Period |
111.27 |
|
|
|
|
Inventory Turnover |
3.28 |
Deteriorated |
Industrial
Average |
10.46 |
|
Receivables Conversion Period |
105.06 |
|
|
|
|
Receivables Turnover |
3.47 |
Deteriorated |
Industrial
Average |
12.39 |
|
Payables Conversion Period |
45.27 |
|
|
|
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.53.03 |
|
|
1 |
Rs.82.34 |
|
Euro |
1 |
Rs.68.99 |
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 SCs 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.