MIRA INFORM REPORT
|
Report Date : |
11.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
OW
HIAB SENG CHIENG
NGOW KIM LIMITED
PARTNERSHIP |
|
|
|
|
Registered Office : |
839, 841, 843, 845 Charoenkrung Road, Taladnoi, Samphantawong, Bangkok 10100 |
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Country : |
Thailand |
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|
|
Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
10.07.1972 |
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Com. Reg. No.: |
0103515012884 |
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|
Legal Form : |
Limited
Partnership |
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|
|
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Line of Business : |
Importer
and distributor of steel
and metal products |
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
OW HIAB SENG
CHIENG NGOW KIM
LIMITED PARTNERSHIP
SUMMARY
BUSINESS
ADDRESS : 839, 841, 843, 845 CHAROENKRUNG
ROAD,
TALADNOI, SAMPHANTAWONG,
BANGKOK 10100
TELEPHONE : [66] 2639-4666,
2233-4466, 2233-4111
FAX : [66] 2266-4466 ,
2639-4664
E-MAIL
ADDRESS : ohk@ohkgroup.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1972
REGISTRATION
NO. : 0103515012884
CAPITAL REGISTERED : BHT. 5,000,000
CAPITAL PAID-UP : BHT.
5,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : LIMITED PARTNERSHIP
EXECUTIVE : MR. VIRAT UDOMSINWATANA, THAI
MANAGING PARTNER
NO.
OF STAFF : 54
LINES
OF BUSINESS : STEEL
AND METAL PRODUCTS
IMPORTER AND
DISTRIBUTOR
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 10, 1972
as a limited
partnership under the registered
name “OW HIEB SENG
CHIENG NGOW KIM
LIMITED PARTNERSHIP” by Mr. Virat
and Mr. Somsak Udomsinwatana, to
distribute steel and
metal products to
domestic market. It
currently employs 54
staff.
The
subject is a major
distributor for various sources
of materials from
well-known leading producers
whose products are
conformed to be
various types of
standard such as
TISI, JIS, ASTM,
DIN, BS and
etc.
The subject’s registered address is 839, 841,
843, 845 Charoenkrung Rd.,
Taladnoi, Samphantawong, Bangkok
10100, and this
is the subject’s
current operation address.
AUTHORIZED PERSON
Mr. Virat Udomsinwatana
Mr. Somsak Udomsinwatana
One of the above
partners can sign
on behalf of the
subject with seal
affixed. Both partners bear full
financial responsibility by
law.
MANAGEMENT
Mr. Virat Udomsinwatana is
the Managing Partner.
He is Thai
nationality with the
age of 48
years old.
Mr. Somsak Udomsinwatana is
the Co-Managing Partner.
He is Thai
nationality with the
age of 46
years old.
BUSINESS
OPERATIONS
The subject is
engaged in importing
and distributing various
kinds of steel
and metal products
such as stainless
steel sheet, stainless
steel round bar,
stainless steel angle
bar, stainless steel
flat bar, stainless
steel tube, stainless
steel pipe, galvanized
steel sheet, electro-galvanized steel
sheet in coil,
hot rolled stainless
steel coil and
checker plate, cold
rolled stainless steel
coil and sheet,
aluminum steel sheet,
aluminum tread plate
sheet, brass sheet
and copper sheet,
hexagonal bar, square
bar and etc.
PURCHASE
The
products are purchased
from suppliers and
agents both domestic
and overseas such as
Japan, Taiwan, Germany,
Korea, Republic of
China, India and
United States of
America.
SALES
The products are sold
locally by wholesale to dealers and manufacturers
in chemical, sugar, kitchen
& utensil, cold
storage, decorating industries
and etc.
RELATED/ASSOCIATED COMPANIES
Udomsin Steel Limited
Partnership.
Business : Distributor
of stainless steels.
Sinwatana Metal Co., Ltd.
Business : Importer
and distributor of
stainless steels.
O. H. K. International Co., Ltd.
Business : Importer
and distributor of
stainless steels.
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.
BANKING
Kasikornbank Public Co., Ltd.
[Charoenkrung Branch
: Charoenkrung Rd.,
Samphantawong, Bangkok]
Bank of Ayudhya
Public Co., Ltd.
[Head Office
: 1222 Rama
3 Rd., Bangpongpang,
Yannawa, Bangkok]
EMPLOYMENT
The
subject employs 54
staff [office and sales staff]
LOCATION
DETAILS
The
premise is owned for
administrative office, shop
and warehouse at
the heading address.
Premise is located
in commercial area.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
1,000,000.
COMMENT
The subject is one of the leading players in
term of major importer
and distributor of steel and metal products.
Consumption
of steel and metals products was expected to grow throughout the
year, aided by the
continuous expansion of
construction sector, especially
for structural and decorative
purposes. However, subject reported consumption slowdown
since beginning of October
2011 caused by
flooding of hundreds
factories in Industrial
Estate area.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 5,000,000 which was
carried by 5
persons as followed:
Name Age Amount
Mr. Virat
Udomsinwatana [48] Bht. 1,000,000 [Unlimited
Partner]
Mr. Somsak
Udomsinwatana [46] Bht. 1,000,000 [Unlimited
Partner]
Mrs. Somkid
Udomsinwatana [52] Bht. 1,000,000
Mrs. Patcharin Udomsinwatana [51] Bht. 1,000,000
Mr. Viset Udomsinwatana [42] Bht. 1,000,000
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Prateep Saengthamrat No.
1054
BALANCE SHEET [BAHT]
The latest financial figures published as at December 31, 2010 & 2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash
Equivalent |
5,752,735.52 |
4,595,953.72 |
|
Trade Accounts & Notes
Receivable |
483,132,570.34 |
599,404,006.41 |
|
Inventories |
349,910,239.88 |
457,958,391.45 |
|
Other Current Assets
|
31,508,366.97 |
19,312,424.81 |
|
|
|
|
|
Total Current Assets
|
870,303,912.71 |
1,081,270,776.39 |
|
Fixed Assets |
17,922,015.07 |
9,533,496.26 |
|
Other Assets |
1,077,339.51 |
10,009,070.49 |
|
Total Assets |
889,303,267.29 |
1,100,813,343.14 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft |
106,201,218.86 |
107,057,700.64 |
|
Trade Account &
Notes Payable |
264,464,557.64 |
410,173,897.60 |
|
Short-term Loan from
Financial Institute |
402,653,980.02 |
499,902,360.02 |
|
Other Current Liabilities |
31,510,245.12 |
11,472,297.80 |
|
|
|
|
|
Total Current Liabilities |
804,830,001.64 |
1,028,606,256.06 |
|
|
|
|
|
Other Liabilities |
9,839,865.31 |
1,298,731.52 |
|
Total Liabilities |
814,669,866.95 |
1,029,904,987.58 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Capital Paid |
5,000,000.00 |
5,000,000.00 |
|
Unappropriated |
69,633,400.34 |
65,908,355.56 |
|
Total Shareholders' Equity |
74,633,400.34 |
70,908,355.56 |
|
Total Liabilities &
Shareholders' Equity |
889,303,267.29 |
1,100,813,343.14 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales |
1,245,347,493.85 |
1,201,439,183.46 |
|
Less: Discount Payment |
[7,562,482.87] |
[12,006,953.74] |
|
Other Income |
31,488,673.70 |
18,403,630.93 |
|
Total Sales |
1,269,273,684.68 |
1,207,835,860.65 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,162,280,116.87 |
1,170,743,460.08 |
|
Selling Expenses |
7,416,395.64 |
12,728,530.51 |
|
Administrative Expenses |
29,351,947.46 |
39,253,579.26 |
|
Total Expenses |
1,199,048,459.97 |
1,222,725,569.85 |
|
|
|
|
|
Profit / [Loss] before Financial
Cost & Income Tax |
70,225,224.71 |
[14,889,709.20] |
|
Financial Cost |
[48,274,279.83] |
[45,886,423.53] |
|
Income Tax |
[8,833,784.06] |
- |
|
|
|
|
|
Net Profit / [Loss] |
13,117,160.82 |
[60,776,132.73] |
|
Retained Earning, beginning
of year |
65,908,355.56 |
126,814,514.40 |
|
Less/Add: Adjustment |
[9,392,116.04] |
[130,026.11] |
|
Retained Earning, end of
year |
69,633,400.34 |
65,908,355.56 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.08 |
1.05 |
|
QUICK RATIO |
TIMES |
0.61 |
0.59 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
69.49 |
126.02 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.40 |
1.09 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
109.89 |
142.78 |
|
INVENTORY TURNOVER |
TIMES |
3.32 |
2.56 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
141.60 |
182.10 |
|
RECEIVABLES TURNOVER |
TIMES |
2.58 |
2.00 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
83.05 |
127.88 |
|
CASH CONVERSION CYCLE |
DAYS |
168.43 |
197.00 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
93.33 |
97.45 |
|
SELLING & ADMINISTRATION |
% |
2.95 |
4.33 |
|
INTEREST |
% |
3.88 |
3.82 |
|
GROSS PROFIT MARGIN |
% |
8.59 |
3.09 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.64 |
(1.24) |
|
NET PROFIT MARGIN |
% |
1.05 |
(5.06) |
|
RETURN ON EQUITY |
% |
17.58 |
(85.71) |
|
RETURN ON ASSET |
% |
1.47 |
(5.52) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.92 |
0.94 |
|
DEBT TO EQUITY RATIO |
TIMES |
10.92 |
14.52 |
|
TIME INTEREST EARNED |
TIMES |
1.45 |
(0.32) |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
3.65 |
|
|
OPERATING PROFIT |
% |
(571.64) |
|
|
NET PROFIT |
% |
121.58 |
|
|
FIXED ASSETS |
% |
87.99 |
|
|
TOTAL ASSETS |
% |
(19.21) |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
8.59 |
Impressive |
Industrial Average |
5.42 |
|
Net Profit Margin |
1.05 |
Impressive |
Industrial Average |
0.33 |
|
Return on Assets |
1.47 |
Impressive |
Industrial Average |
1.04 |
|
Return on Equity |
17.58 |
Impressive |
Industrial Average |
3.08 |
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 8.59%. 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 1.05%, 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
1.47%, 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 17.58%, 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 |
1.08 |
Satisfactory |
Industrial Average |
1.22 |
|
Quick Ratio |
0.61 |
|
|
|
|
Cash Conversion Cycle |
168.43 |
|
|
|
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 1.08 times in 2010, increase from 1.05 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 0.61 times in 2010,
increase from 0.59 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 169 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.92 |
Acceptable |
Industrial Average |
0.69 |
|
Debt to Equity Ratio |
10.92 |
Risky |
Industrial Average |
2.16 |
|
Times Interest Earned |
1.45 |
Impressive |
Industrial Average |
1.00 |
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 1.46 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 0.92 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 |
69.49 |
Impressive |
Industrial Average |
10.55 |
|
Total Assets Turnover |
1.40 |
Acceptable |
Industrial Average |
2.69 |
|
Inventory Conversion Period |
109.89 |
|
|
|
|
Inventory Turnover |
3.32 |
Acceptable |
Industrial Average |
6.58 |
|
Receivables Conversion Period |
141.60 |
|
|
|
|
Receivables Turnover |
2.58 |
Deteriorated |
Industrial Average |
6.00 |
|
Payables Conversion Period |
83.05 |
|
|
|
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.49.07 |
|
UK Pound |
1 |
Rs.76.65 |
|
Euro |
1 |
Rs.66.17 |
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.