MIRA
INFORM REPORT
|
Report Date : |
12.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
LOHATHAI STAINLESS CO., LTD. |
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Registered Office : |
1570/3 Pracharat 1 Road, Bangsue, Bangkok 10800 |
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Country : |
Thailand |
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Financials (as on) : |
28.02.2011 |
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Date of Incorporation : |
12.05.1995 |
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Com. Reg. No.: |
0105538057509 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Distributor and Exporter of Stainless Steel Products |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Moderate |
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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 – 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 |
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Restricted |
C2 |
|
Off-credit |
D |
Company name
LOHATHAI
STAINLESS CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 1570/3 PRACHARAT 1
ROAD, BANGSUE,
BANGKOK 10800
TELEPHONE : [66] 2913-2197-9,
2585-2650, 2585-9811
FAX :
[66] 2587-5420
E-MAIL
ADDRESS : sales@lts.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1995
REGISTRATION
NO. : 0105538057509 [Former :
[1] 1272/2538]
CAPITAL REGISTERED : BHT. 200,000,000
CAPITAL PAID-UP : BHT.
200,000,000
FISCAL YEAR CLOSING DATE : FEBRUARY 28
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
DAMRONG KENGRUNGRUANGCHAI, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 86
LINES
OF BUSINESS : STAINLESS STEEL
PRODUCTS
DISTRIBUTOR
AND EXPORTER
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 May
12, 1995 as
a private limited
company under the name
style “LOHATHAI STAINLESS
CO., LTD.” by
Thai groups, with
the business objective
initially to be a
manufacturer, importer and
distributor of stainless
steel products to
local market. At
present, its business
is a metal
scrap trading to
both domestic and
international markets. It
currently employs 86
staff.
The
subject’s registered address
is 1570/3 Pracharat 1 Rd., Bangsue,
Bangkok 10800, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Damrong Kengrungruangchai |
|
Thai |
60 |
|
Mr. Boriboon Kengrungruangchai |
|
Thai |
33 |
|
Ms. Suwanna Kengrungruangchai |
|
Thai |
31 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Damrong Kengrungruangchai is
the Managing Director.
He is Thai
nationality with the
age of 60
years old.
Mr. Boriboon Kengrungruangchai is
the Deputy Managing
Director.
He is Thai
nationality with the
age of 33
years old.
Mr. Thanawat Panpairoj
is the Sales
& Marketing Manager.
He is Thai
nationality.
Ms. Suwanna Kengrungruangchai is
the General Manager.
She is Thai
nationality with the
age of 31
years old.
BUSINESS OPERATIONS
The subject is
engaged in processing,
distributing and exporting
wide range of
stainless steel scraps.
Range of products
includes stainless steel
turning #304, stainless scrap # 430,
heavy cutting stainless
steel # 304 and stainless
scrap # 304.
PRODUCTION CAPACITY
25,000 tons per
annum
PURCHASE
100% of the
products is purchased
from local suppliers.
SALES
The products are
sold by wholesale
to customers, mainly
stainless steel industry
both domestic and
overseas, such as
Japan, Korea, Taiwan,
Hong Kong and
India.
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is
not found to have
any subsidiary or affiliated
company here in
Thailand.
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.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Nonthaburi Branch :
Nonthaburi Province]
EMPLOYMENT
The
subject employs 86
staff.
LOCATION DETAILS
The
premise is owned
for administrative office,
factory and warehouse
at the heading
address. Premise is
located in commercial/residential area.
Branches
- 47/1
Moo 7, T. Suanyai,
A. Muang, Nonthaburi
11000
- 38/3
Moo 6, Nakornin
Rd., T. Bangkhunkong,
A. Bangkruay, Nonthaburi
11130
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
1,000,000.
COMMENT
Subject’s
operating performance was excellent
in 2010 and the
past nine months of this
year. Scrap metal is in
strong demand especially
in overseas, e.g. Japan. With
strong consumption both domestic
and export markets, subject has
outstanding sales and
services.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 1,000,000
divided into 100 shares
of Bht. 10,000
each.
The
capital was increased
later as following:
Bht. 10,000,000
on August 22,
2000
Bht. 30,000,000
on July 22,
2003
Bht. 50,000,000
on August 22,
2004
Bht. 200,000,000
on February 22,
2007
The
latest registered capital
was increased to
Bht. 200,000,000 divided into
20,000 shares of
Bht. 10,000 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE
[as at
June 30, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
Mr. Damrong
Kengrungruangchai
Nationality: Thai Address : 38/3
Moo 6, T. Bangkhunkong, A. Bangkruay,
Nonthaburi |
10,000 |
50.00 |
Mrs. Sumalee
Kengrungruangchai
Nationality: Thai Address : 38/3
Moo 6, T. Bangkhunkong, A. Bangkruay,
Nonthaburi |
4,000 |
20.00 |
Ms. Suwanna
Kengrungruangchai
Nationality: Thai Address : 38/3
Moo 6, T. Bangkhunkong, A. Bangkruay,
Nonthaburi |
3,000 |
15.00 |
Mr. Boriboon
Kengrungruangchai
Nationality: Thai Address : 38/3
Moo 6, T. Bangkhunkong, A. Bangkruay,
Nonthaburi |
3,000 |
15.00 |
Total Shareholders : 4
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Mr. Natthapol Areeprasertsuk No.
3988
BALANCE SHEET [BAHT]
The latest financial
figures published for
February 28, 2011 &
2010 were:
ASSETS
|
Current Assets |
Feb. 28,
2011 |
Feb. 28,
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
1,627,427.70 |
1,704,618.19 |
|
Trade Accounts Receivable & Postdated Cheque |
321,704,737.92 |
190,038,718.35 |
|
Short-term Loan to Directors |
- |
6,092,500.00 |
|
Inventories |
365,623,520.02 |
298,472,922.17 |
|
Receivable-Revenue Department |
35,232,820.91 |
15,080,885.66 |
|
Other Current Assets
|
20,184,774.12 |
15,765,024.83 |
|
Total Current Assets
|
744,373,280.67 |
527,154,669.20 |
|
|
|
|
|
Fixed Assets |
82,213,730.76 |
74,054,914.46 |
|
Other Assets |
3,000.00 |
3,000.00 |
|
Total Assets |
826,590,011.43 |
601,212,583.66 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
Feb. 28,
2011 |
Feb. 28,
2010 |
|
|
|
|
|
Bank Overdraft and Short-term
Loan from Financial Institution |
525,991,552.28 |
316,159,375.05 |
|
Trade Accounts Payable &
Postdated Cheque |
31,338,376.17 |
35,474,828.12 |
|
Current Portion of Hire-Purchase Contract Payable |
3,867,232.13 |
2,385,858.37 |
|
Short-term Loan from
Related Person |
14,870,000.00 |
20,000,000.00 |
|
Accrued Income Tax |
4,187,392.08 |
2,658,952.88 |
|
Other Current Liabilities |
9,683,313.53 |
10,697,896.72 |
|
Total Current Liabilities |
589,937,866.19 |
387,376,911.14 |
|
|
|
|
|
Hire-Purchase Contract Payable -
Net of Current Portion |
5,044,323.52 |
710,247.38 |
|
Total Liabilities |
594,982,189.71 |
388,087,158.52 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 10,000
par value authorized, issued
and fully paid share
capital 20,000 shares
|
200,000,000.00 |
200,000,000.00 |
|
Capital Paid |
200,000,000.00 |
200,000,000.00 |
|
Retained Earning -
Unappropriated |
31,607,821.72 |
13,125,425.14 |
|
Total Shareholders' Equity |
231,607,821.72 |
213,125,425.14 |
|
Total Liabilities & Shareholders' Equity |
826,590,011.43 |
601,212,583.66 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
Feb. 28,
2011 |
Feb. 28,
2010 |
|
|
|
|
|
Sales |
2,665,036,470.06 |
1,366,243,207.20 |
|
Gain on Exchange Rate |
21,696,177.35 |
- |
|
Other Income |
3,070,770.08 |
8,651,215.16 |
|
Total Revenues |
2,689,803,417.49 |
1,374,894,422.36 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,472,154,114.40 |
1,241,509,991.99 |
|
Selling Expenses |
122,163,315.56 |
69,001,100.42 |
|
Administrative Expenses |
53,325,988.88 |
44,386,330.22 |
|
Total Expenses |
2,647,643,418.84 |
1,354,897,422.63 |
|
Profit / [Loss] Before Interest
Expenses & Income
Tax |
42,159,998.65 |
19,996,999.73 |
|
Interest Expenses |
[14,776,076.61] |
[9,492,759.27] |
|
Income Tax |
[8,901,525.46] |
[4,329,118.56] |
|
Net Profit / [Loss] |
18,482,396.58 |
6,175,121.90 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.26 |
1.36 |
|
QUICK RATIO |
TIMES |
0.55 |
0.51 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
32.42 |
18.45 |
|
TOTAL ASSETS TURNOVER |
TIMES |
3.22 |
2.27 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
53.98 |
87.75 |
|
INVENTORY TURNOVER |
TIMES |
6.76 |
4.16 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
44.06 |
50.77 |
|
RECEIVABLES TURNOVER |
TIMES |
8.28 |
7.19 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
4.63 |
10.43 |
|
CASH CONVERSION CYCLE |
DAYS |
93.42 |
128.09 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
92.76 |
90.87 |
|
SELLING & ADMINISTRATION |
% |
6.58 |
8.30 |
|
INTEREST |
% |
0.55 |
0.69 |
|
GROSS PROFIT MARGIN |
% |
8.17 |
9.76 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.58 |
1.46 |
|
NET PROFIT MARGIN |
% |
0.69 |
0.45 |
|
RETURN ON EQUITY |
% |
7.98 |
2.90 |
|
RETURN ON ASSET |
% |
2.24 |
1.03 |
|
EARNING PER SHARE |
BAHT |
924.12 |
308.76 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.72 |
0.65 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.57 |
1.82 |
|
TIME INTEREST EARNED |
TIMES |
2.85 |
2.11 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
95.06 |
|
|
OPERATING PROFIT |
% |
110.83 |
|
|
NET PROFIT |
% |
199.30 |
|
|
FIXED ASSETS |
% |
11.02 |
|
|
TOTAL ASSETS |
% |
37.49 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
8.17 |
Impressive |
Industrial Average |
4.98 |
|
Net Profit Margin |
0.69 |
Impressive |
Industrial Average |
(0.01) |
|
Return on Assets |
2.24 |
Impressive |
Industrial Average |
(0.24) |
|
Return on Equity |
7.98 |
Impressive |
Industrial Average |
(1.02) |
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 8.17%. 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 0.69%,
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
2.24%, 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 7.98%, 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 |
1.26 |
Satisfactory |
Industrial Average |
1.45 |
|
Quick Ratio |
0.55 |
|
|
|
|
Cash Conversion Cycle |
93.42 |
|
|
|
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 1.26 times in 2011, decrease from 1.36 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 0.55 times in 2011,
increase from 0.51 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 94 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.72 |
Acceptable |
Industrial Average |
0.67 |
|
Debt to Equity Ratio |
2.57 |
Risky |
Industrial Average |
1.93 |
|
Times Interest Earned |
2.85 |
Impressive |
Industrial Average |
0.18 |
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 2.86 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 Downtrend
Times Interest Earned Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
32.42 |
Impressive |
Industrial Average |
10.38 |
|
Total Assets Turnover |
3.22 |
Satisfactory |
Industrial Average |
3.83 |
|
Inventory Conversion Period |
53.98 |
|
|
|
|
Inventory Turnover |
6.76 |
Satisfactory |
Industrial Average |
8.91 |
|
Receivables Conversion Period |
44.06 |
|
|
|
|
Receivables Turnover |
8.28 |
Impressive |
Industrial Average |
7.51 |
|
Payables Conversion Period |
4.63 |
|
|
|
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 Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.49.03 |
|
|
1 |
Rs.76.60 |
|
Euro |
1 |
Rs.66.80 |
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.