MIRA INFORM REPORT
|
Report Date : |
01.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
ITOCHU
[THAILAND] LTD. |
|
|
|
|
Registered Office : |
5th
Floor, Harindhorn Tower, 54
North Sathorn Road,
Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2011 |
|
|
|
|
Date of Incorporation : |
25.07.1974 |
|
|
|
|
Com. Reg. No.: |
0105517008835 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
International Trading Company |
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
ITOCHU [THAILAND] LTD.
SUMMARY
BUSINESS
ADDRESS : 5th FLOOR,
HARINDHORN TOWER,
54 NORTH
SATHORN ROAD, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 266-3086
FAX :
[66] 266-3132-3,
2234-3920, 2235-9536
E-MAIL
ADDRESS : itochuplas@itochu.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1974
REGISTRATION
NO. : 0105517008835 [Former: 890/2517]
CAPITAL REGISTERED : BHT. 600,000,000
CAPITAL PAID-UP : BHT.
600,000,000
FISCAL YEAR CLOSING DATE : MARCH 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
KEITA ISHII, JAPANESE
PRESIDENT
NO.
OF STAFF : 115
LINES
OF BUSINESS : INTERNATIONAL TRADING
COMPANY
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 July
25, 1974 as
a private limited
company under the
registered name “Siam Associated Trade Co.,
Ltd.” by Japanese
groups. On March
16, 1988, the
subject’s name was
changed to “C.I.
[Thailand] Co., Ltd.”, and
changed to the
present name ITOCHU
[THAILAND] LTD., on
September 29, 1992.
The business objective
is engaged in
international trading business.
It currently employs
approximate 115 staff.
The subject’s registered
address is 5th Flr.,
Harindhorn Tower, 54 North Sathorn Rd., Silom,
Bangrak, Bangkok 10500, and
this is the company’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Hiroya Nishikawa |
|
Japanese |
54 |
|
Mr. Masahito Yasuhara |
[x] |
Japanese |
56 |
|
Mr. Keita Ishii |
[x] |
Japanese |
51 |
AUTHORIZED PERSON
One of the above mentioned
directors [x] can sign on
behalf of the subject with company’s
affixed.
MANAGEMENT
Mr. Keita Ishii is
the President.
He is Japanese
nationality with the
age of 51
years old.
Mr. Masahito Yasuhara
is the VP & Financial & Accounting Manager.
He is Japanese
nationality with the
age of 56
years old.
Mr. Soigi Murakami is
the Machinery Department
Manager.
He is Japanese
nationality.
Mr. Hiroya Nishikawa is the
Textile Department Manager.
He is Japanese
nationality.
Mr. Makoto Inoue is
the General Merchandising
Department Manager [Forest Product].
He is Japanese
nationality.
Mr. Yoichi Chonan is
the Industrial Chemical
Department Manager.
He is Japanese
nationality.
Mr. Nobutoshi Morita is
the Plastic Department
Manager.
He is Japanese
nationality.
Mr. Keniji Tai is
the Food Department
Manager.
He is Japanese
nationality.
Mr. Pongthong Chavarung
is the General
Affairs & Human
Resources Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity is a distributor,
exporter and broker agent a wide variety
of goods, e.g. textile, energy, metals & minerals,
chemicals, food, plastic,
machinery, forestry products and
general merchandises.
PURCHASE
The products are
purchased from both
local and overseas
suppliers in Japan,
Singapore, Australia, United States of America, Republic of
China, Canada, Indonesia, Taiwan,
India, Korea, Hong
Kong and European
countries.
SALES [LOCAL]
Its products are
sold locally to
manufacturers and wholesalers.
EXPORT [COUNTRY]
Subject also exports the products to United States of America, Australia, Singapore,
Malaysia, Bangladesh, Republic
of China, Japan, Canada, Vietnam, Myanmar,
Philippines, India and
the countries in
Europe, Middle East
and Africa.
PARENT COMPANY
Itochu Corporation Ltd.
Address : 5-1 Kitaaoyama, 2-shome,
Minakogu, Tokyo 107,
Japan
SUBSIDIARY/AFFILIATED COMPANY
Itochu Management [Thailand]
Co., Ltd.
Business Type
: Investment, trading
and management company.
ASSOCIATED COMPANIES
ITC Auto [Thailand]
Co., Ltd.
Business Type :
Investing and supporting
in vehicle and
motorcycle business.
Suzuki Leasing Co.,
Ltd.
Business Type :
Leasing business.
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 on
negotiated term.
Exports are against
T/T on negotiated
term.
BANKING
Kasikornbank Public Co., Ltd.
[Head
Office : 1
Kasikorn Lane, Rajburana
Rd., Rajburana, Bangkok]
Bangkok Bank
Public Co., Ltd.
[Head
Office : 333
Silom Rd., Silom,
Bangrak, Bangkok]
Sumitomo-Mitsui Banking
Corporation
[Bangkok
Office : 138 Silom
Rd., Suriyawongse, Bangrak,
Bangkok]
Krung Thai
Bank Public Co.,
Ltd.
[Head
Office : 35 Sukhumvit
Rd., Klongtoeynua, Wattana,
Bangkok]
Bank of
Tokyo-Mitsubishi UFJ Ltd.
[Bangkok
Branch]
EMPLOYMENT
The subject employs
115 staff. [office
and sales staff]
LOCATION DETAILS
The premise is rented
for operating office
at the heading
address. Premise is
located in a
prime commercial area.
REMARK
MAXIMUM CREDIT SHOULD
BE GRANTED AT
US$ 5,000,000.
COMMENT
Subject
is an importer, distributor and exporter of
various industrial goods.
The products are mainly for industrial
users. In March 2010,
subject was found
slightly drop of sales
sale, however throughout
the year 2010,
subject experienced a
significantly improvement in its
sales from rising
demand of industrial
goods.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,500,000 divided
into 25,000 shares
of Bht. 100
each.
The capital was
increased later as
followings :
Bht. 5,000,000
on July 15,
1988
Bht. 20,000,000
on August 11,
1989
Bht. 100,000,000
on January 30,
1992
Bht. 300,000,000
on March 29,
2001
Bht. 600,000,000
on April 30,
2002
The latest registered
capital was increased
to Bht. 600,000,000
divided into 6,000,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS LISTED
WERE : [as at
July 1, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Itochu Corporation Ltd.
Nationality: Japanese Address : 5-1
Kita-e Oyama, 2-chome,
Minato-ku, Tokyo, Japan |
5,999,998 |
100.00 |
|
Mr. Keita Ishii Nationality: Japanese Address : 54
North Sathorn Rd,
Silom, Bangrak, Bangkok |
1 |
- |
|
Mr. Masahito Yasuhara Nationality: Japanese Address : 54
North Sathorn Rd,
Silom, Bangrak, Bangkok |
1 |
- |
Total Shareholders : 3
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Manoon Manuoosuk No.
4292
BALANCE SHEET [BAHT]
The latest financial figures published
as at March
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash in hand
& at Bank
|
178,435,014 |
273,376,820 |
|
Trade Accts. & Notes Receivable |
4,412,564,580 |
3,264,908,975 |
|
Current Portion of Lease Contract
Receivable |
- |
2,120,088 |
|
Inventories |
345,846,418 |
217,816,552 |
|
Short-term Loan to Related
Company |
- |
150,000,000 |
|
Advance to Related Company |
15,552,198 |
17,935,096 |
|
Other Current Assets
|
39,063,625 |
17,462,908 |
|
|
|
|
|
Total Current Assets
|
4,991,461,835 |
3,943,620,439 |
|
|
|
|
|
Investment in Subsidiaries
Company |
23,364,768 |
23,364,768 |
|
Investment in Associated
Company |
208,049,450 |
142,549,450 |
|
Other Long-term Investment |
200,160,000 |
181,430,000 |
|
Fixed Assets |
956,975 |
1,231,009 |
|
Intangible Assets |
12,329,219 |
18,515,131 |
|
Other Assets |
5,116,501 |
5,220,511 |
|
Total Assets |
5,441,438,748 |
4,315,931,308 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Bank Overdraft &
Loan from Bank |
1,562,019,032 |
987,853,219 |
|
Trade Accts. Payable |
2,151,157,187 |
1,623,045,600 |
|
Short-term Loan from Related Company |
- |
143,000,000 |
|
Accrued Income Tax |
79,924,810 |
56,971,769 |
|
Accrued Expenses |
36,590,619 |
27,520,701 |
|
Other Current Liabilities |
56,129,045 |
43,274,315 |
|
|
|
|
|
Total Current Liabilities |
3,885,820,693 |
2,881,665,604 |
|
Deferred Income Tax Liabilities |
41,283,000 |
33,858,000 |
|
Estimated Liabilities for Benefit Employees |
11,321,550 |
- |
|
Other Non-current Liabilities |
37,489,315 |
35,012,724 |
|
Total Liabilities |
3,975,914,558 |
2,950,536,328 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 6,000,000 shares |
600,000,000 |
600,000,000 |
|
|
|
|
|
Capital Paid |
600,000,000 |
600,000,000 |
|
Unrealized Losses on Available-for-Sale Securities |
96,327,000 |
79,002,000 |
|
Appropriated for Statutory Reserve |
60,000,000 |
60,000,000 |
|
Unappropriated |
709,197,190 |
626,392,980 |
|
Total Shareholders' Equity |
1,465,524,190 |
1,365,394,980 |
|
Total Liabilities &
Shareholders' Equity |
5,441,438,748 |
4,315,931,308 |
PROFIT & LOSS ACCOUNT
|
Sale |
2011 |
2010 |
|
|
|
|
|
Sales & Service
|
16,686,900,111 |
13,134,978,564 |
|
Dividend Income |
17,798,934 |
26,713,889 |
|
Gain on Investment |
- |
933,559 |
|
Gain on Disposal of Investment |
- |
12,310,340 |
|
Gain on Exchange Rate |
- |
1,658,516 |
|
Interest Income |
4,009,737 |
13,823,127 |
|
Other Income |
3,774,809 |
2,355,401 |
|
Total Sales |
16,712,483,591 |
13,192,773,396 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold & Services |
15,562,046,746 |
12,223,318,847 |
|
Selling Expenses |
398,925,827 |
342,779,619 |
|
Administrative Expenses |
232,160,888 |
233,324,458 |
|
Loss on Disposal of Investment |
15,853,000 |
- |
|
Loss on Exchange Rate |
12,801,019 |
- |
|
Total Expenses |
16,221,787,480 |
12,799,422,924 |
|
|
|
|
|
Profit before Interest Expenses
& Income Tax |
490,696,111 |
393,350,472 |
|
Interest Expenses |
[30,179,101] |
[21,380,699] |
|
Profit before Income Tax |
460,517,010 |
371,969,773 |
|
Income Tax |
[151,512,800] |
[110,525,885] |
|
|
|
|
|
Net Profit / [Loss] |
309,004,210 |
261,443,888 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.28 |
1.37 |
|
QUICK RATIO |
TIMES |
1.18 |
1.23 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
17,437.13 |
10,670.09 |
|
TOTAL ASSETS TURNOVER |
TIMES |
3.07 |
3.04 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
8.11 |
6.50 |
|
INVENTORY TURNOVER |
TIMES |
45.00 |
56.12 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
96.52 |
90.73 |
|
RECEIVABLES TURNOVER |
TIMES |
3.78 |
4.02 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
50.45 |
48.47 |
|
CASH CONVERSION CYCLE |
DAYS |
54.18 |
48.77 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
93.26 |
93.06 |
|
SELLING & ADMINISTRATION |
% |
3.78 |
4.39 |
|
INTEREST |
% |
0.18 |
0.16 |
|
GROSS PROFIT MARGIN |
% |
6.89 |
7.38 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.94 |
2.99 |
|
NET PROFIT MARGIN |
% |
1.85 |
1.99 |
|
RETURN ON EQUITY |
% |
21.08 |
19.15 |
|
RETURN ON ASSET |
% |
5.68 |
6.06 |
|
EARNING PER SHARE |
BAHT |
51.50 |
43.57 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.73 |
0.68 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.71 |
2.16 |
|
TIME INTEREST EARNED |
TIMES |
16.26 |
18.40 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
27.04 |
|
|
OPERATING PROFIT |
% |
24.75 |
|
|
NET PROFIT |
% |
18.19 |
|
|
FIXED ASSETS |
% |
(22.26) |
|
|
TOTAL ASSETS |
% |
26.08 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
6.89 |
Impressive |
Industrial
Average |
5.48 |
|
Net Profit Margin |
1.85 |
Impressive |
Industrial
Average |
0.22 |
|
Return on Assets |
5.68 |
Impressive |
Industrial
Average |
0.72 |
|
Return on Equity |
21.08 |
Impressive |
Industrial
Average |
1.55 |
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 6.89%. 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 1.85%, 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
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.
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 21.08%, 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 |
1.28 |
Impressive |
Industrial
Average |
1.21 |
|
Quick Ratio |
1.18 |
|
|
|
|
Cash Conversion Cycle |
54.18 |
|
|
|
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 1.28 times in 2011, decrease from 1.37 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 1.18 times in 2011,
decrease from 1.23 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 55 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.73 |
Acceptable |
Industrial
Average |
0.67 |
|
Debt to Equity Ratio |
2.71 |
Risky |
Industrial
Average |
1.99 |
|
Times Interest Earned |
16.26 |
Impressive |
Industrial
Average |
0.81 |
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 16.26 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 0.73 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 Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
17,437.13 |
Impressive |
Industrial Average |
9.91 |
|
Total Assets Turnover |
3.07 |
Impressive |
Industrial Average |
2.62 |
|
Inventory Conversion Period |
8.11 |
|
|
|
|
Inventory Turnover |
45.00 |
Impressive |
Industrial Average |
6.31 |
|
Receivables Conversion Period |
96.52 |
|
|
|
|
Receivables Turnover |
3.78 |
Acceptable |
Industrial Average |
6.12 |
|
Payables Conversion Period |
50.45 |
|
|
|
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 Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.93 |
|
UK Pound |
1 |
Rs.76.52 |
|
Euro |
1 |
Rs.66.65 |
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.