MIRA
INFORM REPORT
|
Report Date : |
21.08.2012 |
IDENTIFICATION DETAILS
|
Name : |
SVIZZ-ONE
CORPORATION LTD. |
|
|
|
|
Formerly Known As : |
DEESTONE
RADIAL TIRE CO.,
LTD |
|
|
|
|
Registered Office : |
4/1-2 Moo 7, Banglane-Kohrat Road, T. Bangpla, A. Banglane, Nakornpathom 73130 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
23.05.2006 |
|
|
|
|
Com. Reg. No.: |
0735549001156 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer of automotive tires and related products |
|
|
|
|
No. of Employees : |
800 employees |
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, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
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
SVIZZ-ONE CORPORATION LTD.
[FORMER :
DEESTONE RADIAL TIRE
CO., LTD.]
SUMMARY
BUSINESS
ADDRESS : 4/1-2 MOO
7, BANGLANE-KOHRAT ROAD,
T. BANGPLA, A. BANGLANE,
NAKORNPATHOM 73130
TELEPHONE : [66] 34
301-681-5
FAX :
[66] 34
234-800-1
E-MAIL
ADDRESS : marketing@deestone.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2006
REGISTRATION
NO. : 0735549001156
TAX
ID NO. : 3032200097
CAPITAL REGISTERED : BHT. 700,000,000
CAPITAL PAID-UP : BHT.
700,000,000
SHAREHOLDER’S PROPORTION : THAI :
58.57%
CHINESE :
41.43%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SUWIT WONGSARIYAVANICH, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 800
LINES
OF BUSINESS : AUTOMOTIVE TIRES
AND RELATED PRODUCTS
MANUFACTURER
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 23,
2006 as a
private limited company
under the registered
name “Deestone Radial
Tire Co., Ltd”,
initially by Thai
groups, with the
business aim to
manufacture automotive tires
and related products
mainly for motorcycle
and bicycle industries.
On February 21,
2012, its registered
name was changed
to SVIZZ-ONE CORPORATION
LTD., by a
joint venture between
Thai and Chinese
groups, with the
business became to be
a manufacturer of
radial tires for
vehicles, picked-up cars
and light trucks.
Its currently employs
approximate 800 staff.
The
subject is a
joint venture between
The Deestone group,
of Thailand and
Power Four Investment
Ltd., of Hong
Kong.
The subject’s registered
address was 4 Moo
7, Banglane-Kohrat Rd.,
T. Bangpla,
A. Banglane, Nakornpathom 73130.
On
June 6, 2008,
its registered address
was relocated to 4/1-2
Moo 7, Banglane-Kohrat Rd.,
T. Bangpla,
A. Banglane,
Nakornpathom
73130, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kriengsak Wongsariyavanich |
|
Thai |
73 |
|
Mr. Suwit
Wongsariyavanich |
|
Thai |
70 |
|
Mrs. Walaya
Wongsariyavanich |
|
Thai |
40 |
|
Mr. Kerk
Wongsariyavanich |
|
Thai |
37 |
|
Mr. Suwicha
Wongsariyavanich |
|
Thai |
34 |
|
Ms. Kornvipa Wongsariyavanich |
|
Thai |
31 |
|
Mr. Panya
Lapanantarat |
|
Thai |
71 |
|
Mr. Prasop
Sanongchart |
|
Thai |
72 |
|
Mr. Ekachai
Rojvanich |
|
Thai |
- |
AUTHORIZED PERSON
Two of the
above directors can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Suwit
Wongsariyavanich is
the Managing Director.
He is Thai
nationality with the
age of 70
years old.
Mr. Suwicha
Wongsariyavanich is
the Deputy Managing
Director.
He is Thai
nationality with the
age of 34
years old.
Ms. Kornvipa
Wongsariyavanich is the Assistant
Managing Director.
She is Thai
nationality with the
age of 31
years old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing, exporting
and distributing of automobile tires; motorcycle tires; bicycle tires;
inner tubes for automobile tires; inner tubes for motorcycle tires; inner tubes
for bicycle tires; and automobile wheel covers, under its
own brands “DEESTONE”
and “SVIZZ-ONE”, with
the production capacity
of 20,000 tons
per annum.
PURCHASE
Most
of raw materials
and chemicals are
purchased from local
supplier, the remaining,
as well as
machinery and equipment
are imported from
Germany, Singapore, Republic
of China, U.S.A.
and Japan.
EXPORT
[COUNTRIES]
70%
of the products
is exported to
U.S.A., Singapore, Japan,
Republic of China,
Korea and countries
in Europe.
SALES
[LOCAL]
30%
of the products
is sold locally
to manufacturers and
wholesalers.
MAJOR
CUSTOMERS
Hercules
Tire Rubber Inc. : U.S.A.
T.N.K.
2004 Co., Ltd. : Thailand
SUBSIDIARY AND AFFILIATED
COMPANIES
Deestone Ltd.
Business Type :
Manufacturer and distributor
of automotive tires.
Deestone International
Co., Ltd.
Business Type :
Manufacturer and distributor
of automotive tires.
Deerubber Co., Ltd.
Business Type :
Manufacturer and distributor
of automotive tires.
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
T/T.
Exports are against
T/T.
BANKING
Kasikornbank
Public Co., Ltd.
EMPLOYMENT
The
subject currently employs
approximately 800 office
staff, engineers and
factory workers.
LOCATION
DETAILS
The
premise is owned
for administrative office,
factory and warehouse
at the heading
address. Premise is
located in provincial.
COMMENT
Thai
based commercial and two-wheel vehicle tires
specialist Deestone, has established of a new factory and set
foot into market territory since
2006, as well as the
company continues to manufacture tires
under its second brand name, “Svizz-One”. These
products are predominantly
sold in Thailand
through the fast-fit
chain, and the
most quantity is also exported. Having
now built its
first radial tire
factory (the country’s largest
Thai-owned radial production facility),
these two brands are
not sitting back and relaxing,
which its market share is expected to further
increase in the
near future.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 400,000,000
divided into 4,000,000
shares of Bht. 100 each.
The capital
was increased later
as follows:
Bht.
600,000,000 on December
15, 2009
Bht.
700,000,000 on
June 9, 2011
The
latest registered capital
was increased to Bht. 700
million, divided into
7,000,000 shares of Bht. 100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at
April 26, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Power Four Investment
Ltd. Nationality: Chinese Address : 60/F
Victoria Tower 3,
188 Canton Rd.,
Kowloon, Hong
Kong |
2,900,000 |
41.42 |
|
Deestone Ltd. Nationality: Thai Address : 84
Moo 7, Petchkasem 122
Rd., Omnoi, Krathumban, Samutsakorn |
1,999,720 |
28.57 |
|
Deerubber Co.,
Ltd. Nationality: Thai Address : 84/3
Moo 7, Petchkasem 122
Rd., Omnoi, Krathumban, Samutsakorn |
1,099,860 |
15.71 |
|
Deestone International Co.,
Ltd. Nationality: Thai Address : 4
Moo 7, Banglane-Kohrat Rd.,
Bangpla,
Banglane, Nakornpathom |
999,720 |
14.28 |
|
Mr. Suwit
Wongsariyavanich Nationality: Thai Address : 247/49
Chimplee,
Talingchan,
Bangkok |
100 |
|
|
Mr. Panya
Lapanantarat Nationality: Thai Address : 108/24
Moo 9, Bangwaek Rd.,
Bangpai,
Bangkae, Bangkok |
100 |
|
|
Mr. Prasop
Sanongchart Nationality: Thai Address : 243/32
Chimplee,
Talingchan,
Bangkok |
100 |
= 0.02 |
|
Mr. Kriengsak Wongsariyavanich Nationality: Thai Address : 25/1
Moo 8, Salathammasop, Taweewattana,
Bangkok |
100 |
|
|
Mrs. Walaya
Wongsariyavanich Nationality: Thai Address : 116/38-47
Rangnam
Rd., Thanon Phyathai, Rajthewi, Bangkok |
100 |
|
|
Mr. Kerk
Wongsariyavanich Nationality: Thai Address : 247/49
Chimplee,
Talingchan,
Bangkok |
100 |
|
|
Mr. Suwicha
Wongsariyavanich Nationality: Thai Address : 247/49
Chimplee,
Talingchan,
Bangkok |
100 |
|
Total Shareholders : 11
Share Structure [as
at April 26,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
10 |
4,100,000 |
58.57 |
|
Foreign-Chinese |
1 |
2,900,000 |
41.43 |
|
|
|
|
|
|
Total |
11 |
7,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Visith
Luengvilai
No. 5390
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash in Hand
& at Bank |
48,569,455.99 |
36,428,903.58 |
|
Trade Accounts &
Notes Receivable |
505,343,946.72 |
423,070,583.74 |
|
Inventories |
353,160,402.57 |
245,473,846.49 |
|
Other Current Assets
|
40,735,717.78 |
84,286,416.10 |
|
Total Current Assets |
947,809,523.06 |
789,259,749.91 |
|
Fixed Assets |
3,344,976,033.33 |
2,297,579,616.73 |
|
Other Assets |
380,474.34 |
253,974.94 |
|
Total Assets |
4,293,166,030.73 |
3,087,093,341.58 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial Institution |
844,738,905.35 |
913,848,427.66 |
|
Trade Accounts &
Other Payable |
594,867,873.30 |
451,404,472.42 |
|
Current Portion of Long-term
Liabilities |
129,600,000.00 |
110,300,000.00 |
|
Accrued Income Tax |
7,902,088.37 |
- |
|
Other Current Liabilities |
6,211,579.62 |
6,427,989.26 |
|
|
|
|
|
Total Current Liabilities |
1,583,320,446.64 |
1,481,980,889.34 |
|
Long-term Loan |
1,940,819,290.02 |
1,078,600,000.00 |
|
Obligation for Employee Benefits |
400,000.00 |
- |
|
Other Liabilities |
2,272,657.00 |
1,520,526.00 |
|
Total Liabilities |
3,526,812,393.66 |
2,562,101,415.34 |
|
Shareholders' Equity |
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 7,000,000 shares |
700,000,000.00 |
700,000,000.00 |
|
|
|
|
|
Capital Paid |
700,000,000.00 |
700,000,000.00 |
|
Surplus on Share
Capital |
50,000,000.00 |
- |
|
Retained Earning - Unappropriated
|
16,353,637.07 |
[39,008,073.76] |
|
Total Shareholders' Equity |
766,353,637.07 |
660,991,926.24 |
|
Total Liabilities & Shareholders' Equity |
4,293,166,030.73 |
3,087,093,341.58 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales - Overseas |
2,657,807,866.94 |
1,726,094,508.97 |
|
Sales - Domestic |
1,054,975,388.80 |
692,077,661.76 |
|
Other Income |
38,404,221.89 |
50,077,096.16 |
|
Total Revenues |
3,751,187,477.63 |
2,468,249,266.89 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
3,421,382,874.40 |
2,261,727,013.61 |
|
Selling Expenses |
110,997,263.68 |
73,350,852.74 |
|
Administrative Expenses |
87,648,222.77 |
65,119,757.89 |
|
Total Expenses |
3,620,028,360.85 |
2,400,197,624.24 |
|
|
|
|
|
Profit / [Loss] before Financial
Cost & Income Tax |
131,159,116.78 |
68,051,642.65 |
|
Financial Cost |
[65,992,664.27] |
[38,153,897.09] |
|
Income Tax |
[9,804,741.68] |
- |
|
|
|
|
|
Net Profit / [Loss] |
55,361,710.83 |
29,897,745.56 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.60 |
0.53 |
|
QUICK RATIO |
TIMES |
0.35 |
0.31 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
1.11 |
1.05 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.86 |
0.78 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
37.68 |
39.61 |
|
INVENTORY TURNOVER |
TIMES |
9.69 |
9.21 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
49.68 |
63.86 |
|
RECEIVABLES TURNOVER |
TIMES |
7.35 |
5.72 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
63.46 |
72.85 |
|
CASH CONVERSION CYCLE |
DAYS |
23.89 |
30.63 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
92.15 |
93.53 |
|
SELLING & ADMINISTRATION |
% |
5.35 |
5.73 |
|
INTEREST |
% |
1.78 |
1.58 |
|
GROSS PROFIT MARGIN |
% |
8.88 |
8.54 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.53 |
2.81 |
|
NET PROFIT MARGIN |
% |
1.49 |
1.24 |
|
RETURN ON EQUITY |
% |
7.22 |
4.52 |
|
RETURN ON ASSET |
% |
1.29 |
0.97 |
|
EARNING PER SHARE |
BAHT |
7.91 |
4.27 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.82 |
0.83 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.60 |
3.88 |
|
TIME INTEREST EARNED |
TIMES |
1.99 |
1.78 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
53.54 |
|
|
OPERATING PROFIT |
% |
92.73 |
|
|
NET PROFIT |
% |
85.17 |
|
|
FIXED ASSETS |
% |
45.59 |
|
|
TOTAL ASSETS |
% |
39.07 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.88 |
Satisfactory |
Industrial Average |
8.99 |
|
Net Profit Margin |
1.49 |
Deteriorated |
Industrial Average |
3.86 |
|
Return on Assets |
1.29 |
Deteriorated |
Industrial Average |
3.37 |
|
Return on Equity |
7.22 |
Satisfactory |
Industrial Average |
7.61 |
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 8.88%. When
compared with the industry average, the ratio of the company was lower. This
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 1.49%.
When compared with the industry average, the ratio of the company was lower.
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 1.29%.
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. When compared with the
industry average, it was lower, the company's figure is 7.22%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY RATIO
|
Current Ratio |
0.60 |
Risky |
Industrial Average |
1.05 |
|
Quick Ratio |
0.35 |
|
|
|
|
Cash Conversion Cycle |
23.89 |
|
|
|
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 0.6 times in 2011, increase from 0.53 times, then the company may not be
efficiently using its current assets. 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 0.35 times in 2011,
increase from 0.31 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 24 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.82 |
Acceptable |
Industrial Average |
0.33 |
|
Debt to Equity Ratio |
4.60 |
Risky |
Industrial Average |
0.64 |
|
Times Interest Earned |
1.99 |
Deteriorated |
Industrial Average |
4.79 |
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 1.99 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 0.82 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 Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
1.11 |
Acceptable |
Industrial Average |
1.62 |
|
Total Assets Turnover |
0.86 |
Satisfactory |
Industrial Average |
0.94 |
|
Inventory Conversion Period |
37.68 |
|
|
|
|
Inventory Turnover |
9.69 |
Impressive |
Industrial Average |
6.51 |
|
Receivables Conversion Period |
49.68 |
|
|
|
|
Receivables Turnover |
7.35 |
Impressive |
Industrial Average |
4.96 |
|
Payables Conversion Period |
63.46 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.70 |
|
UK Pound |
1 |
Rs.87.55 |
|
Euro |
1 |
Rs.68.85 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.