MIRA
INFORM REPORT
|
Report Date : |
10.07.2012 |
IDENTIFICATION DETAILS
|
Name : |
THAI
HANSA WELDING ELECTRODES CO.,
LTD. |
|
|
|
|
Registered Office : |
386/2 Moo 1,
Soi Bee-Thai, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
26.01.1972 |
|
|
|
|
Com. Reg. No.: |
0105515000641 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, exporter and distributor of welding electrodes |
|
|
|
|
No. of Employees : |
100 |
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
THAI HANSA WELDING ELECTRODES
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 386/2
MOO 1, SOI
BEE-THAI, SUKHUMVIT ROAD,
BANGPOOMAI, MUANG,
SAMUTPRAKARN 10280,
THAILAND
TELEPHONE : [66] 2323-0022,
2323-0605-8
FAX : [66] 2323-9832,
2323-0032
E-MAIL
ADDRESS : info@geminithai.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1972
REGISTRATION
NO. : 0105515000641 [Former: 65/2515]
TAX
ID NO. : 3101048490
CAPITAL REGISTERED : BHT. 50,000,000
CAPITAL PAID-UP : BHT
50,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCALYEAR CLOSING DAT
: DECEMBER 31
LEGAL
STATUS : PRIVATE
LIMITED COMPANY
EXECUTIVE
: MR.
UAYCHAI ABHINORASETH, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 100
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 GOOD PERFORMANCE
HISTORY
The subject was
established on January
26, 1972 as
a private limited
company under the name style
THAI HANSA WELDING ELECTRODES
CO., LTD., by Abhinoraseth family. The subject received
promotional privileges from the Board of Investment, Thailand
to manufacture welding
electrode to both
local and overseas
markets. It currently
employs approximate 100
staff.
The subject’s registered
address is 386/2 Moo 1, Soi Bee-Thai,
Sukhumvit Rd., Bangpoomai, Muang, Samutprakarn
10280, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Uaychai Abhinoraseth |
|
Thai |
64 |
|
Mr. Apichart Abhinoraseth |
|
Thai |
54 |
|
Mr. Pairoj Abhinoraseth |
|
Thai |
73 |
|
Mr. Arak Abhinoraseth |
|
Thai |
60 |
|
Mr. Prapin Abhinoraseth |
|
Thai |
51 |
|
Mr. Thawatchai Abhinoraseth |
|
Thai |
58 |
AUTHORIZED PERSON
Two of the
above directors can
jointly sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Uaychai Abhinoraseth is the
Managing Director.
He is Thai
nationality with the
age of 64 years
old.
Mr. Apichart Abhinoraseth is
the General Manager
& Plant Manager.
He is Thai
nationality with the
age of 54
years old.
Mrs. Ratiros Sangthong is
the Export Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activity
is a manufacturer
of welding electrodes
as the followings:
Mild Steel
High Tensite Steel
Hard Facing Steel
Stainless Steel
Cast Iron, copper
alloy and nickel
alloy
Low Temperature Service
Steel
Heat Resistant Steel
Corrosion Resistant Steel
Welding Cable
etc.
MAJOR BRANDS
“GEMINI”, “NAKATA”
PRODUCTION
1,600 tons/month
IMPORT [COUNTRIES]
20% of raw
materials, such as
mica powder and
steel rod are imported
from Japan, Singapore, Taiwan,
Malaysia, Germany and
Republic of China,
while 80% is
purchased from local
suppliers.
MAJOR SUPPLIERS
|
Name |
Country |
|
|
|
|
Posco-Thainox Public Company
Limited |
Thailand |
|
Hansa Metallwerke AG.
|
Germany |
|
Wiremaker Co., Ltd. |
Thailand |
EXPORTS [COUNTRIES]
80% of the
products is exported
to United States
of America, Germany,
Singapore,
United Kingdom, France,
Canada, Australia, Vietnam,
Myanmar, Laos, Japan,
Republic of China,
Middle East, India,
Pakistan and etc.
SALES [LOCAL]
20% of the
products is sold locally to
manufacturers, wholesalers and
retailers.
MAJOR CUSTOMERS
Lertvilai & Sons
Co., Ltd. : Thailand
M. C. P. Brothers Co.,
Ltd. : Thailand
Selectrode Industries Inc. : U.S.A.
J. Habib International Ltd. : Pakistan
RELATED & AFFILIATED
COMPANIES
Lertvilai &
Sons Co., Ltd.
Business Type: Trading company
Gemini [Thailand] Co.,
Ltd.
Business Type: Manufacturer of
welding electrodes
M. C. P. Brothers Co.,
Ltd.
Business Type :
Trading company
Thanyanoraseth Co., Ltd.
Business Type :
Manufacturer of welding
electrodes
Triangle Cables [Thailand]
Co., Ltd.
Business Type :
Manufacturer of flexible
power
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 on the
credits term of
30-60 days and
T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
[Head Office
: 333 Silom Road,
Silom, Bangrak, Bangkok]
The Siam Commercial
Bank Public Co.,
Ltd.
[Taladnoi Branch
: Taladnoi, Samphantawong, Bangkok]
EMPLOYMENT
The
subject employs approximately
100 office, sales
staff and factory
workers.
LOCATION DETAILS
The premise is
owned for operating
administrative office, factory
and warehouse at
the heading address. Premise is
located in an
industrial area on 12,800 square
meters.
COMMENT
The
subject is a
manufacturer, distributor and
exporter of welding electrodes.
Most of products
have been served to industrial sector. Its
sales are mainly related to industrial
consumption which is likely
to have an
outstanding increase.
FINANCIAL INFORMATION
The capital was
registered at Bht.
1,500,000 divided into
15,000 shares of
Bht. 100 each.
The capital was
increased later as
followings :
Bht. 9,000,000
on December 21,
1981
Bht. 26,000,000
on February 25,
1989
Bht. 50,000,000
on February 15,
1993
The latest registered
capital was increased
to Bht. 50,000,000 divided into 500,000
shares of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED
WERE : [as
at April 30,
2012]
|
NAME |
HOLDING |
% |
|
Mr. Kasemsit Abhinoraseth Nationality: Thai Address : 784
Charoenkrung Rd., Samphantawong, Bangkok |
99,983 |
20.00 |
|
Mr. Pairoj Abhinoraseth Nationality: Thai Address : 244
Moo 5, Taiban,
Muang, Samutprakarn |
75,000 |
15.00 |
|
Mr. Thawatchai Abhinoraseth Nationality: Thai Address : 788-790
Charoenkrung Rd.,
Samphantawong, Bangkok |
66,618 |
13.33 |
|
Mr. Prapin Abhinoraseth Nationality: Thai Address : 788-790
Charoenkrung Rd.,
Samphantawong, Bangkok |
50,163 |
10.03 |
|
Mr. Sitthiboon Abhinoraseth Nationality: Thai Address : 22
Trok Sunthornpimol, Jarumang,
Rongmuang, Pathumwan, Bangkok |
37,500 |
7.50 |
|
Mr. Tan Abhinoraseth Nationality: Thai Address : 22
Trok Sunthornpimol, Jarumang,
Rongmuang, Pathumwan, Bangkok |
37,500 |
7.50 |
|
Mr. Uaychai Abhinoraseth Nationality: Thai Address : 639/19
Ladprao Rd., Ladyao,
Bangkhen, Bangkok |
33,309 |
6.66 |
|
Mr. Apichart Abhinoraseth Nationality: Thai Address : 19
Moo 16, Lamphyaklang, Muaklek, Saraburi |
33,309 |
6.66 |
|
Mr. Visit Abhinoraseth Nationality: Thai Address : 786
Charoenkrung Rd.,
Samphantawong, Bangkok |
33,309 |
6.66 |
|
Mr. Arak Abhinoraseth Nationality: Thai Address : 786
Charoenkrung Rd., Samphantawong, Bangkok |
33,309 |
6.66 |
Total Shareholders : 10
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
10 |
500,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
10 |
500,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Yongyuth Tangsirisa-nguan No.
2400
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
16,699,474.97 |
12,110,043.02 |
|
Trade Accounts & Other Receivable |
146,952,239.49 |
121,101,007.78 |
|
Inventories &
Packaging |
7,483,543.61 |
8,876,571.00 |
|
Other Current Assets
|
1,966,536.20 |
2,180,540.97 |
|
Total Current Assets
|
173,101,794.27 |
144,268,162.77 |
|
|
|
|
|
Fixed Assets |
30,247,921.71 |
28,400,376.32 |
|
Intangible Assets |
1,169,315.02 |
1,569,315.04 |
|
Other Assets |
2,188,043.91 |
2,044,043.91 |
|
Total Assets |
206,707,074.91 |
176,281,898.04 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Bank Overdraft &
Short Term Loan
from Financial Institution |
18,579,995.32 |
27,724,329.74 |
|
Trade Accounts & Other
Payable |
50,008,177.52 |
31,732,280.18 |
|
Current Portion of Lease
Contract Liabilities |
1,370,272.53 |
955,820.22 |
|
Accrued Income Tax |
5,801,499.48 |
1,494,225.00 |
|
Other Current Liabilities |
324,449.62 |
276,322.27 |
|
Total Current Liabilities |
76,084,394.47 |
62,182,977.41 |
|
Lease Contract Liabilities, Net
of Current Portion |
2,299,173.98 |
1,193,298.61 |
|
Reserve for Employee Benefit |
5,868,577.21 |
- |
|
Total Liabilities |
84,252,145.66 |
63,376,276.02 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 500,000 shares |
50,000,000.00 |
50,000,000.00 |
|
Capital Paid |
50,000,000.00 |
50,000,000.00 |
|
Statutory Reserve |
5,000,000.00 |
5,000,000.00 |
|
Retained Earning -
Unappropriated |
67,454,929.25 |
57,905,622.02 |
|
Total Shareholders' Equity |
122,454,929.25 |
112,905,622.02 |
|
Total Liabilities & Shareholders' Equity |
206,707,074.91 |
176,281,898.04 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
407,518,829.49 |
385,287,529.82 |
|
Services Income |
7,622,750.00 |
4,322,662.50 |
|
Gain on Disposal
of Assets |
- |
186,914.89 |
|
Gain on Exchange
Rate |
685,715.79 |
2,653,650.16 |
|
Other Income |
1,548,156.20 |
1,712,692.54 |
|
Total Revenues |
417,375,451.48 |
394,163,449.91 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
347,652,590.49 |
343,099,596.99 |
|
Selling Expenses |
24,160,758.13 |
20,785,337.86 |
|
Administrative Expenses |
25,778,094.44 |
19,362,291.94 |
|
Total Expenses |
397,591,443.06 |
383,247,226.79 |
|
Profit Before Financial
Costs & Income
Tax |
19,784,008.42 |
10,916,223.12 |
|
Financial Costs |
[1,316,018.94] |
[1,261,729.62] |
|
Profit Before Income Tax |
18,467,989.48 |
9,654,493.50 |
|
Income Tax |
[7,468,682.25] |
[3,236,312.10] |
|
Net Profit / [Loss] |
10,999,307.23 |
6,418,181.40 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
2.28 |
2.32 |
|
QUICK RATIO |
TIMES |
2.15 |
2.14 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
13.72 |
13.72 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.01 |
2.21 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
7.86 |
9.44 |
|
INVENTORY TURNOVER |
TIMES |
46.46 |
38.65 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
129.20 |
113.45 |
|
RECEIVABLES TURNOVER |
TIMES |
2.83 |
3.22 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
52.50 |
33.76 |
|
CASH CONVERSION CYCLE |
DAYS |
84.56 |
89.14 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
83.74 |
88.06 |
|
SELLING & ADMINISTRATION |
% |
12.03 |
10.30 |
|
INTEREST |
% |
0.32 |
0.32 |
|
GROSS PROFIT MARGIN |
% |
16.79 |
13.11 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.77 |
2.80 |
|
NET PROFIT MARGIN |
% |
2.65 |
1.65 |
|
RETURN ON EQUITY |
% |
8.98 |
5.68 |
|
RETURN ON ASSET |
% |
5.32 |
3.64 |
|
EARNING PER SHARE |
BAHT |
22.00 |
12.84 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.41 |
0.36 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.69 |
0.56 |
|
TIME INTEREST EARNED |
TIMES |
15.03 |
8.65 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
6.55 |
|
|
OPERATING PROFIT |
% |
81.23 |
|
|
NET PROFIT |
% |
71.38 |
|
|
FIXED ASSETS |
% |
6.51 |
|
|
TOTAL ASSETS |
% |
17.26 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
16.79 |
Impressive |
Industrial
Average |
13.68 |
|
Net Profit Margin |
2.65 |
Impressive |
Industrial
Average |
2.53 |
|
Return on Assets |
5.32 |
Impressive |
Industrial
Average |
2.91 |
|
Return on Equity |
8.98 |
Impressive |
Industrial
Average |
6.48 |
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. Gross Profit Margin is 16.79%. 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. Net Profit Margin ratio is 2.65%,
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
5.32%, 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 8.98%, 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 |
2.28 |
Impressive |
Industrial
Average |
1.48 |
|
Quick Ratio |
2.15 |
|
|
|
|
Cash Conversion Cycle |
84.56 |
|
|
|
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 2.28 times in 2011, decrease from 2.32 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 2.15 times in 2011,
increase from 2.14 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 85 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.41 |
Impressive |
Industrial
Average |
0.51 |
|
Debt to Equity Ratio |
0.69 |
Impressive |
Industrial
Average |
1.13 |
|
Times Interest Earned |
15.03 |
Impressive |
Industrial
Average |
2.95 |
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 15.04 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 0.41 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 Uptrend
Times Interest Earned Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
13.72 |
Impressive |
Industrial
Average |
2.53 |
|
Total Assets Turnover |
2.01 |
Impressive |
Industrial
Average |
1.08 |
|
Inventory Conversion Period |
7.86 |
|
|
|
|
Inventory Turnover |
46.46 |
Impressive |
Industrial
Average |
3.60 |
|
Receivables Conversion Period |
129.20 |
|
|
|
|
Receivables Turnover |
2.83 |
Acceptable |
Industrial
Average |
5.08 |
|
Payables Conversion Period |
52.50 |
|
|
|
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.56.02 |
|
UK Pound |
1 |
Rs.86.78 |
|
Euro |
1 |
Rs.68.83 |
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.