MIRA
INFORM REPORT
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Report Date : |
28.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
GSE LINING
TECHNOLOGY COMPANY LIMITED |
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Registered Office : |
26th Floor,
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
11.08.1999 |
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Com. Reg. No.: |
0105542058883 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, distributor and
exporter of geo-membrane
lining products |
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No. of Employees : |
200 employees |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Good |
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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 – June 30th, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
Thailand |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
thailand - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise economy,
generally pro-investment policies, and strong export industries, Thailand
enjoyed solid growth from 2000 to 2007 - averaging more than 4% per year - as
it recovered from the Asian financial crisis of 1997-98. Thai exports - mostly
machinery and electronic components, agricultural commodities, and jewelry -
continue to drive the economy, accounting for more than half of GDP. The global
financial crisis of 2008-09 severely cut Thailand's exports, with most sectors
experiencing double-digit drops. In 2009, the economy contracted 2.3%. In 2010,
Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports
rebounded from their depressed 2009 level. Steady economic growth at just below
4% during the first three quarters of 2011 was interrupted by historic flooding
in October and November in the industrial areas north of Bangkok, crippling the
manufacturing sector and leading to a revised growth rate of only 0.1% for the
year. The industrial sector is poised to recover from the second quarter of
2012 onward, however, and the government anticipates the economy will probably
grow between 5.5 and 6.5% for 2012, while private sector forecasts range
between 3.8% and 5.7%.
|
Source : CIA |
Company name
GSE LINING TECHNOLOGY COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 26th FLOOR,
RASA TOWER,
555 PHAHOLYOTHIN
ROAD, JATUJAK,
BANGKOK 10900
TELEPHONE : [66] 2937-0091
FAX :
[66] 2937-0097
E-MAIL
ADDRESS : jsteinke@gseworld.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1999
REGISTRATION
NO. : 0105542058883
TAX
ID NO. : 3021036911
CAPITAL REGISTERED : BHT. 148,000,000
CAPITAL PAID-UP : BHT.
148,000,000
SHAREHOLDER’S PROPORTION : AMERICAN :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. JAMES THOMAS
STEINKE, AMERICAN
MANAGING DIRECTOR
NO.
OF STAFF : 200
LINES
OF BUSINESS : GEO-MEMBRANE LINING
PRODUCTS
MANUFACTURER, 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 August 11, 1999
as a private
limited company under
the name style
GSE LINING TECHNOLOGY
COMPANY LIMITED by
American groups, with
the business objective
to manufacture and
distribute geo-membrane lining
products for both
domestic and international
markets. It currently
employs approximate 200
staff.
The
subject is a
wholly owned subsidiary
of GSE International
Inc., U.S.A.
It
also achieved the
ISO 9001:2000 and
ISO 14001 certification.
The subject’s registered
address is 26th Flr., 555 Rasa
Tower, Phaholyothin Rd.,
Jatujak, Bangkok 10900,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
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|
|
|
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|
Mr. Carol Wayne Case |
|
American |
67 |
|
Mr. James Thomas Steinke |
|
American |
66 |
|
Mr. Chusak Foonilkul |
|
Thai |
- |
AUTHORIZED PERSON
Any of the
directors can sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. James Thomas Steinke
is the Managing
Director.
He is American
nationality with the
age of 67
years old.
Mr. Suwit Jariyawattanavijit is
the Sales Manager.
He is Thai
nationality.
Mr. Boonchai Densakul is
the Domestic Sales
Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject is engaged
in manufacturing and
distributing of High
Density Polyethylene Geo-Membrane
Liners [HDPE], and
Linear Low Density
Polyethylene Geo-Membrane Liner [LLDPE], used in
agriculture, construction of
dam, wastewater treatment
and other industries.
PRODUCTION CAPACITY
approximately 30,000 tons
per annum.
BRAND NAME
“GSE”
PURCHASE
Most of
raw materials mainly
plastic resins are
purchased from local
suppliers, the remaining
is imported from U.S.A.,
Republic of China
and Germany.
MAJOR
SUPPLIERS
GSE
International Inc. : U.S.A.
GSE
Lining Technology Inc. : U.S.A.
PURCHASE
70% of the
products is sold
locally to manufacturers, wholesalers
and end-users.
EXPORT [COUNTRIES]
30% of the
products is exported
to Hong Kong,
Indonesia, Philippines, Japan,
Malaysia, Myanmar, Singapore,
Korea, Australia, Republic
of China, India,
Vietnam and Laos.
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.
Imports are by
L/C at sight
or T/T.
Exports are against
L/C at sight
or T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
The Siam Commercial
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
200 office staff
and factory workers.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Factory
and warehouse are
located at 111/5
Moo 2, Nikompattana,
Rayong 21180.
Tel. : [66]
38 897-142-3 Fax. :
[66] 38 636-638.
COMMENT
The
subject’s business has
shown sustainable growth.
Its growth was
powered by exports,
while domestic consumption
has gradually increased.
Subject’s sales are
mainly related to
consumption improvement, as well
as its business performance closely
links with the
condition of industrial improvement, which
is expanding steadily.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 148,000,000
divided into 1,480,000
shares of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
GSE International Inc. Nationality: American Address : 19103 Gundle Rd.,
Houston, Texas, U.S.A. |
1,479,997 |
100.00 |
|
Mr. James Thomas Steinke Nationality: American Address : 4010
Heaven Pines Drive,
Kingwood, Texas, U.S.A. |
2 |
- |
|
Mr. Prasopsak Tanhikorn Nationality: Thai Address : 9/458
Phaholyothin Rd., Jatujak,
Bangkok |
1 |
- |
Total Shareholders : 3
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
1 |
- |
|
Foreign - American |
2 |
1,479,999 |
100.00 |
|
Total |
3 |
1,480,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Anurak Leelapiyamitr No.
3462
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash in Hand
& at Bank |
66,682,872 |
88,514,691 |
|
Trade Accounts &
Other Receivable |
427,997,884 |
374,711,913 |
|
Trade Accounts &
Other Receivable -
Person & Related Company |
244,513,244 |
62,296,312 |
|
Inventories |
235,097,651 |
285,423,519 |
|
|
|
|
|
Total Current Assets
|
974,291,651 |
810,946,435 |
|
Fixed Assets |
294,752,809 |
|
|
Other Non-current Assets |
3,979,747 |
14,357,436 |
|
Total Assets |
1,273,024,207 |
1,139,796,340 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts &
Other Payable |
275,963,399 |
396,997,411 |
|
Trade Accounts &
Other Payable -
Person & Related Company
|
189,854,664 |
77,785,318 |
|
Current Portion of Long-term
Loan from Financial Institution |
33,379,885 |
45,600,000 |
|
Total Current Liabilities |
499,197,948 |
520,382,729 |
|
Long-term Loan from Financial Institution |
1,280,000 |
34,659,885 |
|
|
|
|
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Total Liabilities |
500,477,948 |
555,042,614 |
|
|
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Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,480,000 shares |
148,000,000 |
148,000,000 |
|
Capital Paid |
148,000,000 |
148,000,000 |
|
Retained Earning Appropriated for
Statutory Reserve
|
10,730,000 |
10,730,000 |
|
Unappropriated |
613,816,259 |
426,023,726 |
|
Total Shareholders' Equity |
772,546,259 |
584,753,726 |
|
Total Liabilities & Shareholders' Equity |
1,273,024,207 |
1,139,796,340 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
2,790,376,870 |
1,847,600,651 |
|
Other Income |
33,148,191 |
2,539,647 |
|
Total Revenues |
2,823,525,061 |
1,850,140,298 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,247,022,442 |
1,564,949,807 |
|
Selling Expenses |
315,432,765 |
215,558,072 |
|
Administrative Expenses |
27,459,848 |
41,165,572 |
|
Total Expenses |
2,589,915,055 |
1,821,673,451 |
|
|
|
|
|
Profit / [Loss] before Financial
Cost & Income Tax |
233,610,006 |
28,466,847 |
|
Financial Cost |
[5,817,473] |
[5,913,736] |
|
Income Tax |
[40,000,000] |
- |
|
|
|
|
|
Net Profit / [Loss] |
187,792,533 |
22,553,111 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.95 |
1.56 |
|
QUICK RATIO |
TIMES |
1.48 |
1.01 |
|
|
|
|
|
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ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
9.47 |
5.87 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.19 |
1.62 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
38.19 |
66.57 |
|
INVENTORY TURNOVER |
TIMES |
9.56 |
5.48 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
55.98 |
74.03 |
|
RECEIVABLES TURNOVER |
TIMES |
6.52 |
4.93 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
44.83 |
92.59 |
|
CASH CONVERSION CYCLE |
DAYS |
49.35 |
48.00 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
80.53 |
84.70 |
|
SELLING & ADMINISTRATION |
% |
12.29 |
13.89 |
|
INTEREST |
% |
0.21 |
0.32 |
|
GROSS PROFIT MARGIN |
% |
20.66 |
15.44 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
8.37 |
1.54 |
|
NET PROFIT MARGIN |
% |
6.73 |
1.22 |
|
RETURN ON EQUITY |
% |
24.31 |
3.86 |
|
RETURN ON ASSET |
% |
14.75 |
1.98 |
|
EARNING PER SHARE |
BAHT |
126.89 |
15.24 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.39 |
0.49 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.65 |
0.95 |
|
TIME INTEREST EARNED |
TIMES |
40.16 |
4.81 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
51.03 |
|
|
OPERATING PROFIT |
% |
720.64 |
|
|
NET PROFIT |
% |
732.67 |
|
|
FIXED ASSETS |
% |
(6.28) |
|
|
TOTAL ASSETS |
% |
11.69 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
20.66 |
Impressive |
Industrial
Average |
14.47 |
|
Net Profit Margin |
6.73 |
Impressive |
Industrial
Average |
2.07 |
|
Return on Assets |
14.75 |
Impressive |
Industrial
Average |
2.75 |
|
Return on Equity |
24.31 |
Impressive |
Industrial
Average |
6.20 |
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 20.66%. 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 6.73%, 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
14.75%, 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 Assets 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 Assets ratio is 24.31%, 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 Uptrend
Return on Equity Downtrend
LIQUIDITY RATIO
|
Current Ratio |
1.95 |
Impressive |
Industrial
Average |
1.26 |
|
Quick Ratio |
1.48 |
|
|
|
|
Cash Conversion Cycle |
49.35 |
|
|
|
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 1.95 times in 2011, increased from 1.56 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 1.48 times in 2011,
increased from 1.01 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 50 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.39 |
Impressive |
Industrial
Average |
0.56 |
|
Debt to Equity Ratio |
0.65 |
Impressive |
Industrial
Average |
1.26 |
|
Times Interest Earned |
40.16 |
Impressive |
Industrial
Average |
2.85 |
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 40.16 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 0.39 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 Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
9.47 |
Impressive |
Industrial
Average |
2.61 |
|
Total Assets Turnover |
2.19 |
Impressive |
Industrial
Average |
1.28 |
|
Inventory Conversion Period |
38.19 |
|
|
|
|
Inventory Turnover |
9.56 |
Impressive |
Industrial
Average |
6.32 |
|
Receivables Conversion Period |
55.98 |
|
|
|
|
Receivables Turnover |
6.52 |
Impressive |
Industrial
Average |
4.79 |
|
Payables Conversion Period |
44.83 |
|
|
|
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.89.34 |
|
Euro |
1 |
Rs.72.35 |
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.