MIRA
INFORM REPORT
|
Report Date : |
05.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
NITRO CHEMICAL
INDUSTRY LIMITED |
|
|
|
|
Registered Office : |
24
Rama 1 Road, Rongmuang,
Pathumwan, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
25.01.1982 |
|
|
|
|
Com. Reg. No.: |
0105525002719 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor
& Exporter of Paint
Chemicals |
|
|
|
|
No. of Employees : |
120 |
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) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
NITRO CHEMICAL INDUSTRY LIMITED
SUMMARY
BUSINESS
ADDRESS : 24
RAMA 1 ROAD, RONGMUANG,
PATHUMWAN,
TELEPHONE : [66] 2215-9079,
215-5934
FAX :
[66] 2215-9282
E-MAIL
ADDRESS : export@nitrochemical.com
REGISTRATION
ADDRESS : 84/2
MOO 4, RAMA 2
ROAD, BANGTORAD,
MUANG, SAMUTSAKORN
74000
ESTABLISHED
: 1982
REGISTRATION
NO. : 0105525002719
CAPITAL REGISTERED : BHT. 300,000,000
CAPITAL PAID-UP : BHT.
300,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
AMPHAN VIPRAKASIT, THAI
MANAGING
DIRECTOR
NO.
OF STAFF : 120
LINES
OF BUSINESS : PAINT
CHEMICALS
MANUFACTURER, DISTRIBUTOR
& 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 January 25,
1982 as a
private limited company
under the name
style NITRO CHEMICAL INDUSTRY LIMITED
by Thai groups,
in order to manufacture specialty chemicals
for paint industry both
domestic and overseas
markets. It currently
employs approximately 120
staff.
The
subject received the
promotion privilege from
the Board of
Investment and was
granted industrial nitrocellulose manufacturing
and marketing rights
from Defense Ministry
of Thailand.
The subject’s registered
address is 84/2
Moo 4, Rama 2 Rd.,
Bangtorad, Muang, Samutsakorn
74000, while the
subject’s current operation
address is at
24 Rama 1 Rd.,
Rongmuang, Pathumwan, Bangkok
10330.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Sumarat Viprakasit |
[+] |
Thai |
69 |
|
Mr. Chavalit Viprakasit |
[+] |
Thai |
48 |
|
Mr. Thaksin Viprakasit |
[x] |
Thai |
78 |
|
Mr. Amphan Viprakasit |
[x] |
Thai |
73 |
|
Mr. Pichet Viprakasit |
|
Thai |
37 |
|
Mr. Yim Tanangteerapong |
|
Thai |
82 |
|
Mr. Eiam Eiamvananontachai |
[+] |
Thai |
74 |
AUTHORIZED PERSON
Both of the
mentioned directors [x]
can jointly sign
or one of
the mentioned directors
[x] can jointly
sign with one of
the directors [+]
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Amphan Viprakasit
is the Managing
Director.
He is Thai
nationality with the
age of 73
years old.
Mr. Siripong Rojluechai
is the Factory
Manager.
He is Thai
nationality.
Mr. Pichet Viprakasit is
the Marketing Manager.
He is Thai
nationality with the
age of 37
years old.
Mr. Prakorn Veerasombat is
the Sales Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing various kinds
of specialty chemicals,
mainly Nitrocellulose,
which has two
grades “SS’ and “RS” for use in
various coating applications
including wood coating,
paper coating, finished
for grained leather,
printing ink, aircraft
lacquer, protective finishes
for metal, automotive lacquer,
aluminum foil coating
and etc.
PRODUCTION CAPACITY
2,500 tons/month
PURCHASE
Most
of raw materials
are purchased from
local suppliers, the
rest and machinery
are imported from United States
of America, Taiwan, United Kingdom, Germany, Japan, Belgium
and Singapore.
SALES
[LOCAL]
80% of the
products is sold
locally to manufacturers, and
the remaining 20% is exported
to Bangladesh, Republic
of China, Sri
Lanka, India, Indonesia,
Japan, Malaysia, Vietnam,
Singapore, Saudi Arabia
and other Middle
East countries.
MAJOR CUSTOMERS
- J.B.P. International Co., Ltd. :
Thailand
- I.C.I Paints [Thailand]
Co., Ltd. : Thailand
- TOA Paints group of companies :
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.
RELATED/ASSOCIATED COMPANIES
- V.S. General Chem
Co., Ltd.
Business Type:
Manufacturer & distributor
of industrial chemicals
- RCI Labscan Ltd.
Business Type: Manufacturer
& distributor of
industrial chemicals
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 30-60-90
days.
Imports
are by L/C
at sight and T/T
on negotiated term.
Exports
are against L/C
at sight and
T/T.
BANKING
Bangkok
Bank Public Co., Ltd.
[Bangkoknoi Branch :
Bangkoknoi, Bangkok 10700]
Krung
Thai Bank Public
Co., Ltd.
[Sapanlueng Branch :
Banthadthong Rd., Rongmuang,
Pathumwan, Bangkok 10330]
[Pathumwan Branch: Wangmai,
Pathumwan, Bangkok 10330]
EMPLOYMENT
The
subject employs approximately 120
staff [office staff
and factory workers].
LOCATION DETAILS
The
premise is owned
for administrative office
at the heading
address. Premise is
located in commercial
area.
Factory
is located on
96,000 square meters of
area, at 84/2
Moo 4, Rama 2 Rd., Bangtorad,
Muang, Samutsakorn 74000,
Tel : [66] 34 839-467-8,
Fax: [66] 34 839-469.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$ 5,000,000.
COMMENT
The
subject was formed
in 1992 as
a manufacture of
paint chemicals. Since
its establishment, the
subject has become
a leading manufacturer
of Nitrocellulose product. NCI’s
market covers more
than 25 countries
worldwide including Asian
Pacific region, North
America, Canada, Australia,
Middle East and
etc. The products
under the NCI all
manufactured “Continuous
Process” by most
advanced high-tech machinery and
equipments, all computerized
control. The great
technology capacity developed
has allowed the
company to develop
different products for
the most diverse application
within industry in
general.
The
subject had strong
sales in 2010
comparing to the
year 2009. In
general, the subject has a good
business prospect.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht. 15,000,000 divided
into 15,000 shares of Bht.
1,000 each.
The
capital was increased
later as follows:
Bht. 90,000,000
on May 24,
1990
Bht.
150,000,000 on August
15, 1991
Bht.
300,000,000 on December
9, 1998
The
latest registered capital
was increased to
Bht. 300,000,000 divided
into 30,000,000 shares of
Bht. 10 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE
[as at
March 24, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Thaksin Viprakasit Nationality: Thai Address : 73
Thaklang Rd., Thubthieng,
Muang, Trang Province |
7,232,400 |
24.11 |
|
Mr. Amphan Viprakasit Nationality: Thai Address : 24
Rama 1 Rd., Rongmuang,
Pathumwan, Bangkok |
3,500,000 |
11.67 |
|
Mrs. Sumarat Viprakasit Nationality: Thai Address : 24
Rama 1 Rd., Rongmuang, Pathumwan,
Bangkok 10330 |
3,500,000 |
11.67 |
|
Mr. Pichet Viprakasit Nationality: Thai Address : 24
Rama 1 Rd., Rongmuang,
Pathumwan,
Bangkok |
3,437,300 |
11.46 |
|
Mr. Eiam Eiamvananontachai Nationality: Thai Address : 14/68
Rajvithi-Nakornchaisri
Rd.,
Bangkoknoi, Bangkok 10700 |
3,000,000 |
10.00 |
|
Ms. Punnarat Viprakasit Nationality: Thai Address : 24
Rama 1 Rd., Rongmuang,
Pathumwan,
Bangkok |
1,637,300 |
5.46 |
|
Mr. Yim Tanangteerapong Nationality: Thai Address : 39-41
Visetkul Rd., Thubthieng,
Muang, Trang Province |
1,500,000 |
5.00 |
|
Others |
6,193,000 |
20.63 |
Total Shareholders : 20
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO.
Ms. Vorarat Kiatthanawit
No. 8334
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2010 & 2009
were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalents |
8,825,387.07 |
6,476,082.54 |
|
Short-term Investment |
26,633,892.58 |
43,767,554.47 |
|
Trade Accounts Receivable |
334,682,910.37 |
299,321,540.38 |
|
Inventories |
90,715,454.27 |
149,974,760.59 |
|
Prepaid Income Tax |
27,882,000.00 |
21,501,000.00 |
|
Other Current Assets
|
10,903,571.53 |
3,277,243.44 |
|
|
|
|
|
Total Current Assets
|
499,643,215.82 |
524,318,181.42 |
|
Investment in Associated
Companies |
499,024,980.00 |
594,920,674.01 |
|
Long-term Loan to
Associated Company |
153,000,000.00 |
153,000,000.00 |
|
Fixed Assets |
195,796,212.78 |
205,172,329.42 |
|
Other Assets |
12,922,674.89 |
10,872,896.47 |
|
Total Assets |
1,360,387,083.49 |
1,488,284,081.32 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft & Short-term Loan
from Financial Institution |
- |
134,615,495.77 |
|
Trade Accounts Payable |
96,646,418.66 |
176,775,981.36 |
|
Reserve for Income
Tax |
74,300,507.86 |
51,550,892.57 |
|
Current Portion of
Long-term Loan |
- |
38,750,000.00 |
|
Other Current Liabilities |
44,983,998.18 |
32,384,948.99 |
|
|
|
|
|
Total Current Liabilities |
215,930,924.70 |
434,077,318.69 |
|
Total Liabilities |
215,930,924.70 |
434,077,318.69 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 10 par
value authorized, issued
and fully paid share
capital 30,000,000 shares |
300,000,000.00 |
300,000,000.00 |
|
|
|
|
|
Capital Paid |
300,000,000.00 |
300,000,000.00 |
|
Retained Earning Appropriated for Statutory Reserve |
30,000,000.00 |
30,000,000.00 |
|
Other Reserves |
55,380,123.49 |
55,380,123.49 |
|
Unappropriated |
759,076,035.30 |
668,826,639.14 |
|
Total Shareholders' Equity |
1,144,456,158.79 |
1,054,206,762.63 |
|
Total Liabilities &
Shareholders' Equity |
1,360,387,083.49 |
1,488,284,081.32 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
|
Sales & Services |
1,188,256,440.53 |
948,269,396.06 |
|
Gain on Sales of
Investment |
50,512,705.49 |
- |
|
Dividend Income |
6,809,693.00 |
3,404,846.50 |
|
Other Income |
37,879,846.35 |
17,761,644.77 |
|
Total Revenues |
1,283,458,685.37 |
969,435,887.33 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold & Services |
893,065,302.98 |
684,513,067.47 |
|
Selling Expenses |
55,349,447.63 |
40,110,989.55 |
|
Administrative Expenses |
74,988,691.52 |
62,202,973.34 |
|
Total Expenses |
1,023,403,442.13 |
786,827,030.36 |
|
|
|
|
|
Profit before Interest
Expenses & Income
Tax |
260,055,243.24 |
182,608,856.97 |
|
Interest Expenses |
[5,875,806.70] |
[9,448,122.45] |
|
Profit before Income Tax |
254,179,436.54 |
173,160,734.52 |
|
Income Tax |
[74,300,507.86] |
[51,550,892.57] |
|
|
|
|
|
Net Profit / [Loss] |
179,878,928.68 |
121,609,841.95 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
2.31 |
1.21 |
|
QUICK RATIO |
TIMES |
1.71 |
0.81 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
6.07 |
4.62 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.87 |
0.64 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
37.08 |
79.97 |
|
INVENTORY TURNOVER |
TIMES |
9.84 |
4.56 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
102.81 |
115.21 |
|
RECEIVABLES TURNOVER |
TIMES |
3.55 |
3.17 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
39.50 |
94.26 |
|
CASH CONVERSION CYCLE |
DAYS |
100.38 |
100.92 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
75.16 |
72.19 |
|
SELLING & ADMINISTRATION |
% |
10.97 |
10.79 |
|
INTEREST |
% |
0.49 |
1.00 |
|
GROSS PROFIT MARGIN |
% |
32.85 |
30.05 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
21.89 |
19.26 |
|
NET PROFIT MARGIN |
% |
15.14 |
12.82 |
|
RETURN ON EQUITY |
% |
15.72 |
11.54 |
|
RETURN ON ASSET |
% |
13.22 |
8.17 |
|
EARNING PER SHARE |
BAHT |
6.00 |
4.05 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.16 |
0.29 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.19 |
0.41 |
|
TIME INTEREST EARNED |
TIMES |
44.26 |
19.33 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
25.31 |
|
|
OPERATING PROFIT |
% |
42.41 |
|
|
NET PROFIT |
% |
47.91 |
|
|
FIXED ASSETS |
% |
(4.57) |
|
|
TOTAL ASSETS |
% |
(8.59) |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
32.85 |
Impressive |
Industrial Average |
12.54 |
|
Net Profit Margin |
15.14 |
Impressive |
Industrial Average |
4.42 |
|
Return on Assets |
13.22 |
Impressive |
Industrial Average |
5.83 |
|
Return on Equity |
15.72 |
Impressive |
Industrial Average |
10.01 |
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 32.85%. When
compared with the industry average, the ratio of the company was higher,
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 15.14%
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 is 13.22%,
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 is 15.72%, 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 |
2.31 |
Impressive |
Industrial Average |
1.46 |
|
Quick Ratio |
1.71 |
|
|
|
|
Cash Conversion Cycle |
100.38 |
|
|
|
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 2.31 times in 2010, increase from 1.21 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 1.71 times in 2010,
increase from 0.81 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 101 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.16 |
Impressive |
Industrial Average |
0.42 |
|
Debt to Equity Ratio |
0.19 |
Impressive |
Industrial Average |
0.73 |
|
Times Interest Earned |
44.26 |
Impressive |
Industrial Average |
3.49 |
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 44.26 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 0.16 less than 0.5, most of the company's
assets are financed through equity.
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 |
6.07 |
Impressive |
Industrial Average |
1.95 |
|
Total Assets Turnover |
0.87 |
Acceptable |
Industrial Average |
1.23 |
|
Inventory Conversion Period |
37.08 |
|
|
|
|
Inventory Turnover |
9.84 |
Impressive |
Industrial Average |
8.74 |
|
Receivables Conversion Period |
102.81 |
|
|
|
|
Receivables Turnover |
3.55 |
Deteriorated |
Industrial Average |
7.98 |
|
Payables Conversion Period |
39.50 |
|
|
|
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.51.05 |
|
|
1 |
Rs.81.09 |
|
Euro |
1 |
Rs.67.39 |
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.