MIRA INFORM REPORT
|
Report Date : |
07.02.2012 |
IDENTIFICATION DETAILS
|
Name : |
YAWATA
ELECTRODE [THAILAND] CO.,
LTD. |
|
|
|
|
Registered Office : |
82 Moo 5, T. Khamthalaysor, A. Khamthalaysor, Nakornratchasima 30280 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
10.05.1973 |
|
|
|
|
Com. Reg. No.: |
0105516004810 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, exporter and distributor of welding electrodes |
|
|
|
|
No. of Employees
: |
300 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
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) |
|
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
YAWATA ELECTRODE
[THAILAND] CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 82
MOO 5, T. KHAMTHALAYSOR,
A.
KHAMTHALAYSOR,
NAKORNRATCHASIMA 30280, THAILAND
TELEPHONE : [66] 44
333-380-1
FAX :
[66] 44
333-378-9
E-MAIL ADDRESS : info@yawata.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1973
REGISTRATION
NO. : 0105516004810 [Former
: 484/2516]
CAPITAL REGISTERED : BHT. 60,000,000
CAPITAL PAID-UP : BHT.
60,000,000
SHAREHOLDER’S PROPORTION : THAI :
66%
JAPANESE : 34%
FISCAL YEAR CLOSING DATE : DECEMBER
31
LEGAL
STATUS : PRIVATE
LIMITED COMPANY
EXECUTIVE : DR. PRAPIN
ABHINORASATE, THAI
MANAGING
DIRECTOR
NO.
OF STAFF : 300
LINES
OF BUSINESS : WELDING
ELECTRODES
MANUFACTURER, EXPORTER AND
DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The subject
was established on May 10,
1973 as a
private limited company under the
name style YAWATA ELECTRODE
[THAILAND] CO., LTD.
It was a
joint-venture company between
Japanese groups and Thai investor, Lertvilai
& Sons Co.,
Ltd. by Mr.
Lertvilai Abhinorasate, who
is well
known in industrial
and trade circles,
and two Japanese
firms, Nittetsu Shoji
Co., Ltd. & Nippon
Steel Welding Products
and Engineering Co.,
Ltd., with the
objective to manufacture
welding wires and
welding electrode products
for both domestic
and international markets.
It currently employs
approximate 300 staff.
Presently,
the major shareholders
are Lertvilai & Sons Co.,
Ltd., Nippon Steel
& Sumikin Welding Co., Ltd, Nippon Steel
Trading Co., Ltd., and Siam
Buntarik Co., Ltd.,
which are holding
around 55%, 23%, 11%
and 11% of
the subject’s total shares
respectively.
The
subject’s registered address was
initially located at 18/1
Moo 1, Liabklong
Pasicharoen Rd., Nongkaem,
Bangkok 10160.
In
2009, the subject’s
registered address was relocated
to 82 Moo 5,
T. Khamthalaysor, A. Khamthalaysor, Nakornratchasima 30280,
and this is the company’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Norihiro Hori |
|
Japanese |
62 |
|
Mr. Ouaychai Abhinoraseth |
[x] |
Thai |
65 |
|
Dr. Prapin Abhinoraseth |
[x] |
Thai |
51 |
|
Mr. Thawatchai Abhinoraseth |
[x] |
Thai |
58 |
|
Mr. Sitthiboon Abhinoraseth |
[x] |
Thai |
33 |
|
Mr. Pairoj Abhinoraseth |
[x] |
Thai |
73 |
|
Mr. Akira Ono |
|
Japanese |
56 |
|
Mr. Yuichi Imai |
|
Japanese |
59 |
|
Mr. Takashi Nakamoto |
|
Japanese |
56 |
AUTHORIZED PERSON
One of
the mentioned directors
[x] can jointly sign with anyone
of the rest
directors on behalf
of the subject
with company’s affixed.
MANAGEMENT
Dr. Prapin
Abhinorasate is the
Managing Director / Sales and
Marketing Manager.
He
is Thai nationality
with the age
of 51 years
old.
Mr. Chalermdej Komalakul
Na Nakorn is
the Factory Manager.
He
is Thai nationality.
BUSINESS OPERATIONS
The subject’s activity is a manufacturer,
exporter and distributor of welding electrode
products, mainly as
covered ARC welding
electrodes, gas metal
ARC welding wires
and gas tungsten
ARC welding wires.
MAJOR
BRAND
“YAWATA”
IMPORT
[COUNTRIES]
50% of
raw materials mainly
steel, chemical and etc.,
are imported from Singapore, Japan,
Taiwan, Germany and
India.
MAJOR
SUPPLIERS
Nippon
Steel Trading Co.,
Ltd. : Japan
Nippon
Steel & Sumikin Welding Co.,
Ltd. : Japan
Thai
Metal Trade Public
Company Limited :
Thailand
SALES
[LOCAL]
70%
of its products
is sold locally
by Lertvilai &
Sons Co., Ltd.
EXPORT
[COUNTRIES]
30%
of its products
is exported to
Singapore, Malaysia, Taiwan, Australia,
Sri Lanka, Indonesia, Africa,
Republic of China,
Philippines and Europe.
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 30-60-90 days.
Local bills are
paid by cash
or on the
credits term of
30-60-90 days.
Imports are by
L/C at sight
or on the
credit term of
120 days.
Exports are against
L/C at sight
or T/T.
LOCATION DETAILS
The premise is owned
for operating office,
factory and warehouse
at the heading
address. Premise is
located in provincial.
COMMENT
Subject
was established in
1973. Its sales and
production have continuously
increased from strong
demand of industrial sector.
In the years
2010-2011 its operating
performance has strong
capability in order to
serve the customers
with high quality products and
technology processing.
FINANCIAL INFORMATION
The capital was
registered at Bht. 6
million, divided into
60,000 shares of
Bht. 100 each.
The capital was
increased later as
the followings:
Bht. 8
million on May
9, 1979
Bht. 10
million on January
25, 1984
Bht. 30
million on July
4, 1989
Bht. 60
million on December
27, 2004
The latest registered capital was
divided into 60,000
shares of Bht.
1,000 each with
fully paid.
MAIN
SHAREHOLDERS : [as of
April 30, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Lertvilai & Sons
Co., Ltd. Nationality: Thai Address : 788-790
Charoenkrung Rd.,
Samphantawong, Bangkok |
32,908 |
54.85 |
|
Nippon Steel &
Sumikin Welding Co.,
Ltd. Nationality: Japanese Address : 8-3
Nihonbashi-Komisho, Shoku, Tokyo, Japan |
13,800 |
23.00 |
|
Nippon Steel Trading
Co., Ltd. Nationality: Japanese Address : 5-7
Kameito 1, Shomagoto-ku, Tokyo, Japan |
6,600 |
11.00 |
|
Siam Buntarik Co.,
Ltd. Nationality: Thai Address : 947
Moo 12, Bangna-Trad
Rd.,
Bangna, Bangkok |
6,600 |
11.00 |
|
Others |
92 |
0.15 |
Total Shareholders :
15
Share Structure [as
at April 30,
2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
13 |
39,600 |
66.00 |
|
Foreign - Japanese |
2 |
20,400 |
34.00 |
|
Total |
15 |
60,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Pipit Yuengyuksakol No.
8687
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash in Hand
& at Bank |
12,321,321.45 |
485,258.84 |
|
Trade Accounts Receivable |
3,422,505.88 |
- |
|
Related Company Receivable |
25,481,066.49 |
72,629,146.37 |
|
Inventories |
93,820,890.85 |
3,432,268.48 |
|
Packaging Materials |
3,327,385.08 |
91,730.65 |
|
Other Current Assets
|
1,495,846.91 |
11,475,216.15 |
|
|
|
|
|
Total Current Assets
|
139,869,016.66 |
88,113,620.49 |
|
Investment in Share Capital of Other Company |
500,000.00 |
18,500,000.00 |
|
Other Long-term Investment |
- |
8,762,266.50 |
|
Fixed Assets |
164,342,795.75 |
5,304,224.39 |
|
Intangible Assets |
59,851.57 |
73,402.87 |
|
Other Assets |
4,658,621.05 |
2,526,981.99 |
|
Total Assets |
309,430,285.03 |
123,280,496.24 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Bank |
11,870,695.16 |
1,642,934.03 |
|
Trade Accounts Payable |
78,219,439.56 |
251,957.56 |
|
Related Company Payable |
132,076,430.13 |
63,326,216.40 |
|
Current Portion of
Hire-purchase Payable |
3,983,519.52 |
- |
|
Current Portion of Long-term
Loan |
21,600,000.00 |
- |
|
Accrued Expenses |
10,162,631.09 |
16,504,714.95 |
|
Short-term Loan from
Director |
- |
5,067,085.46 |
|
Accrued Interest |
8,062,402.37 |
- |
|
Accrued Dividend |
7,650,000.00 |
7,650,000.00 |
|
Other Current Liabilities |
1,148,149.21 |
4,491.20 |
|
|
|
|
|
Total Current Liabilities |
274,773,267.04 |
94,447,399.60 |
|
Hire-purchase Vehicle |
7,018,936.72 |
- |
|
Long-term Loan from Related Company |
205,893,031.00 |
53,393,020.63 |
|
Other Long-term Loan |
64,412,526.82 |
9,617,969.24 |
|
Total Liabilities |
552,097,761.58 |
157,458,389.47 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 60,000 shares |
60,000,000.00 |
60,000,000.00 |
|
|
|
|
|
Capital Paid |
60,000,000.00 |
60,000,000.00 |
|
Retained Earning Appropriated for Statutory Reserve |
2,100,000.00 |
2,100,000.00 |
|
Other Reserve |
7,500,000.00 |
7,500,000.00 |
|
Unappropriated |
[312,267,476.55] |
[111,840,242.38] |
|
Total Shareholders' Equity |
[242,667,476.55] |
[42,240,242.38] |
|
Total Liabilities & Shareholders' Equity |
309,430,285.03 |
123,280,496.24 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales |
113,366,403.66 |
5,555,528.63 |
|
Operation Income |
3,150,000.00 |
4,570,817.18 |
|
Services & Interest Income |
13,549.55 |
8,097,994.13 |
|
Gain from Transferred
Assets for Debt Repayment |
- |
15,052,824.43 |
|
Other Income |
1,592,017.69 |
719,960.17 |
|
Total Sales |
118,121,970.90 |
33,997,124.54 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
96,483,062.71 |
10,590,818.90 |
|
Cost of Operation |
- |
720,817.18 |
|
Selling Expenses |
2,263,272.28 |
194,550.48 |
|
Administrative Expenses |
8,814,444.37 |
955,370.62 |
|
Loss on Exchange
Rate |
255,641.24 |
- |
|
Total Expenses |
107,816,420.60 |
12,461,557.18 |
|
|
|
|
|
Profit before Financial
Cost & Income Tax |
10,305,550.30 |
21,535,567.36 |
|
Financial Cost |
[2,989,082.49] |
[3,249,329.62] |
|
|
|
|
|
Profit before Income Tax |
7,316,467.81 |
18,286,237.74 |
|
Income Tax |
[244,527.48] |
- |
|
|
|
|
|
Net Profit / [Loss] |
7,071,940.33 |
18,286,237.74 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.51 |
0.93 |
|
QUICK RATIO |
TIMES |
0.15 |
0.77 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.71 |
3.44 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.38 |
0.15 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
354.93 |
110.75 |
|
INVENTORY TURNOVER |
TIMES |
1.03 |
3.30 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
10.72 |
- |
|
RECEIVABLES TURNOVER |
TIMES |
34.05 |
- |
|
PAYABLES CONVERSION PERIOD |
DAYS |
295.91 |
8.13 |
|
CASH CONVERSION CYCLE |
DAYS |
69.74 |
102.62 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
82.80 |
62.07 |
|
SELLING & ADMINISTRATION |
% |
9.51 |
6.31 |
|
INTEREST |
% |
2.57 |
17.83 |
|
GROSS PROFIT MARGIN |
% |
18.57 |
124.48 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
8.84 |
118.17 |
|
NET PROFIT MARGIN |
% |
6.07 |
100.34 |
|
RETURN ON EQUITY |
% |
(2.91) |
(43.29) |
|
RETURN ON ASSET |
% |
2.29 |
14.83 |
|
EARNING PER SHARE |
BAHT |
117.87 |
304.77 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
1.78 |
1.28 |
|
DEBT TO EQUITY RATIO |
TIMES |
(2.28) |
(3.73) |
|
TIME INTEREST EARNED |
TIMES |
3.45 |
6.63 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
539.42 |
|
|
OPERATING PROFIT |
% |
(52.15) |
|
|
NET PROFIT |
% |
(61.33) |
|
|
FIXED ASSETS |
% |
2,998.34 |
|
|
TOTAL ASSETS |
% |
151.00 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
18.57 |
Satisfactory |
Industrial
Average |
18.82 |
|
Net Profit Margin |
6.07 |
Impressive |
Industrial
Average |
0.23 |
|
Return on Assets |
2.29 |
Satisfactory |
Industrial
Average |
2.39 |
|
Return on Equity |
(2.91) |
Deteriorated |
Industrial
Average |
5.14 |
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 18.57%. 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 6.07%,
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. When compared with the
industry average, it was lower, the company's figure is 2.29%.
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 -2.91%.
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 |
0.51 |
Risky |
Industrial
Average |
8.36 |
|
Quick Ratio |
0.15 |
|
|
|
|
Cash Conversion Cycle |
69.74 |
|
|
|
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 0.51 times in 2010, decreased from 0.93 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 0.15 times in 2010,
decreased from 0.77 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 70 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
1.78 |
Risky |
Industrial Average |
0.59 |
|
Debt to Equity Ratio |
(2.28) |
Risky |
Industrial
Average |
1.82 |
|
Times Interest Earned |
3.45 |
Deteriorated |
Industrial
Average |
382.49 |
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 3.45 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 1.78 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 Uptrend
Times Interest Earned Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
0.71 |
Deteriorated |
Industrial Average |
53.67 |
|
Total Assets Turnover |
0.38 |
Deteriorated |
Industrial Average |
1.53 |
|
Inventory Conversion Period |
354.93 |
|
|
|
|
Inventory Turnover |
1.03 |
Deteriorated |
Industrial Average |
10.31 |
|
Receivables Conversion Period |
10.72 |
|
|
|
|
Receivables Turnover |
34.05 |
Impressive |
Industrial Average |
11.17 |
|
Payables Conversion Period |
295.91 |
|
|
|
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.48.68 |
|
UK Pound |
1 |
Rs.76.75 |
|
Euro |
1 |
Rs.63.57 |
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%)
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and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its
officials.