MIRA
INFORM REPORT
|
Report Date : |
13.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
THAI
OLEOCHEMICALS COMPANY LIMITED |
|
|
|
|
Registered Office : |
15th Floor, Energy Complex Building A, 555/1 Vibhavadi Rangsit Road, Chatuchak, Bangkok 10900 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
28.07.2005 |
|
|
|
|
Com. Reg. No.: |
0105548097694 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturers, Distributor and Exporter of Oleochemicals |
|
|
|
|
No. of Employees : |
200 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 : |
Slow but Correct |
|
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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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
THAI OLEOCHEMICALS COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 15th FLOOR,
ENERGY COMPLEX BUILDING
A,
555/1 VIBHAVADI
RANGSIT ROAD,
CHATUCHAK, BANGKOK
10900, THAILAND
TELEPHONE : [66] 2265-8400
FAX :
[66] 2265-8500,
2265-8125
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2005
REGISTRATION
NO. : 0105548097694
TAX
ID NO. : 3031899650
CAPITAL REGISTERED : BHT. 7,400,000,000
CAPITAL PAID-UP : BHT.
7,400,000,000
SHAREHOLDER’S PROPORTION : THAI : 100 %
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR
PATIPAN SUKONTAMARN, THAI
MANAGING DIRECTOR
[ACTING]
NO.
OF STAFF : 200
LINES
OF BUSINESS : OLEOCHEMICALS
MANUFACTURERS,
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 July 28,
2005 as a
private limited company under the
registered name THAI
OLEOCHEMICALS COMPANY LIMITED
by Thai groups, with the
business objective to
manufacture oleochemicals for
various industries both
domestic and international. It
currently employs approximate
200 staff.
The
subject is a
wholly owned subsidiary
of PTT Global Chemical Public
Company Limited, a
member of PTT
group of companies.
The
subject’s registered address
is 15th Flr., Energy
Complex Building A,
555/1 Vibhavadi Rangsit Rd.,
Chatuchak, Bangkok 10900,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mrs. Tassanaluck Santikul |
|
Thai |
58 |
|
Mr. Patipan Sukontamarn |
|
Thai |
51 |
|
Mr. wanchai Thadadolthip |
|
Thai |
55 |
AUTHORIZED PERSON
Any two of
the above directors
can jointly sign
on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Patipan Sukontamarn is
the Acting Managing
Director.
He is Thai
nationality with the
age of 51
years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing various kinds
of oleochemicals for
personal hygiene products,
pharmaceuticals and cosmetic industries.
Its products are as follows:
·
Methyl Ester,
a substance added
to improve diesel
fuel efficiency
·
Fatty Alcohol,
a basic ingredient
in the manufacture
of many personal
hygiene products
·
Glycerin, a
raw material in the pharmaceutical and
cosmetic industries.
PRODUCTION CAPACITY
Methyl Ester : 200,000 tons per
annum
Fatty Alcohol : 100,000 tons per
annum
Glycerin :
31,000 tons per
annum
PURCHASE
Raw materials, mainly
palm and palm
seed oil are
purchased from local
suppliers, while machinery
is imported from
U.S.A., and European
countries.
MAJOR
SUPPLIER
PTT Global Chemical
Public Company Limited : Thailand
SALES
The products are
sold to both local
and overseas, mainly
U.S.A., Japan and
Europe.
MAJOR CUSTOMERS
PNR Parich Co.,
Ltd. : Thailand
Global Cosmetic Labs
Inc. : U.S.A.
SUBSIDIARY AND AFFILIATED
COMPANY
Thai Fatty Alcohol
Co., Ltd.
Business Type: Manufacturer
of basic bio-chemicals.
Investment : The subject is holding
100% of the
company’s shares.
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
T/T.
BANKING
The
Siam Commercial Bank
Public Co., Ltd.
EMPLOYMENT
The
subject currently 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 8
Soi G12, Pakornsongkrohraj Rd.,
T. Mabtaphut, A. Muang, Rayong
21150. Tel.: [66] 38
994-000.
COMMENT
The
company is the
leading producer of
Methyl Ester, Fatty Alcohol
and Glycerin for
industrial users. The
products are being
made from palm and
palm kernel oil,
these organic products
are safe to
human and the
environment. The company
operates as a subsidiary of PTT Chemical Public Company Limited.
The ME
produced at the company’s
plant is blended with petroleum
diesel to create biodiesel, a biodegradable
and clean burning fuel than
has the same combustion properties as conventional
petroleum diesel fuel.
However
in 2011 overall industrial
conditions have subsequently improved,
as well as demand
of Oleochemicals has
significantly increased with the
strong growth outlook.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,400,00,000
divided into 24,000,000
shares of Bht.
100 each with
fully paid.
On October 21, 2011, the capital was increased to Bht. 7,400,000,000
divided into 74,000,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 20, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
PTT Global Chemical
Public Company Limited Nationality: Thai Address : 555/1
Vibhavadi Rangsit Rd.,
Chatuchak, Bangkok |
73,999,998 |
100.00 |
|
Mr. Veerasak Kositpaisarn Nationality: Thai Address : 1092/279
Moo 12, Bangna, Bangkok |
1 |
- |
|
Mr. Nathawut Budhikaran Nationality: Thai Address : 164
Soi Rajvithi 4,
Rajvithi Rd.,
Samsennai, Phyathai, Bangkok |
1 |
- |
Total Shareholders : 3
Share Structure [as
at April 20,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
74,000,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
74,000,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Vairoj Chindamaneepitak No.
3565
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2011
& 2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
207,647,059 |
374,876,916 |
|
Trade Accounts Receivable
|
1,343,134,966 |
2,953,508,590 |
|
Other Receivable |
16,143,107 |
21,262,416 |
|
Inventories |
813,058,421 |
833,728,136 |
|
Value Added Tax Receivable |
13,431,116 |
- |
|
Other Current Assets
|
46,655,646 |
40,561,729 |
|
|
|
|
|
Total Current Assets
|
2,440,070,315 |
4,223,937,787 |
|
Investment in Subsidiaries Company |
1,685,000,000 |
385,000,000 |
|
Fixed Assets |
5,534,775,834 |
5,919,860,258 |
|
Intangible Assets |
67,871,239 |
71,054,006 |
|
Deferred Income Tax |
20,895,388 |
- |
|
Other Non-current Assets |
38,183,725 |
8,897,044 |
|
Total Assets |
9,786,796,501 |
10,608,749,095 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts Payable |
199,162,136 |
312,007,040 |
|
Other Payable |
118,557,523 |
165,543,107 |
|
Contractor Payable |
12,211,755 |
22,682,407 |
|
Short-term Loan from
Related Company |
- |
8,060,000,000 |
|
Current Portion of Long-term
Loans from Related Company |
235,000,000 |
- |
|
Current Portion of Financial Lease
Contract Liabilities |
2,614,336 |
6,462,625 |
|
Derivative Assets |
9,240 |
- |
|
Other Current Liabilities |
151,455,560 |
89,913,740 |
|
|
|
|
|
Total Current Liabilities |
719,010,550 |
8,656,608,919 |
|
|
|
|
|
Long-term Loan from Related
Company |
2,080,000,000 |
- |
|
Financial Lease Contract Liabilities |
1,013,776 |
2,379,237 |
|
Accrued Income Tax
Liabilities |
- |
2,063,392 |
|
Reserve for Employee’s Benefit |
9,154,906 |
4,637,229 |
|
Total Liabilities |
2,809,179,232 |
8,665,688,777 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 74,000,000 &
24,000,000 shares in
2011 & 2010
respectively |
7,400,000,000 |
2,400,000,000 |
|
|
|
|
|
Capital Paid |
7,400,000,000 |
2,400,000,000 |
|
Retained Earning - Unappropriated |
[422,382,731] |
[456,939,682] |
|
Total Shareholders' Equity |
6,977,617,269 |
1,943,060,318 |
|
Total Liabilities & Shareholders' Equity |
9,786,796,501 |
10,608,749,095 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
11,455,971,681 |
8,224,393,592 |
|
Interest Income |
7,248,966 |
2,297,147 |
|
Other Income |
164,090,743 |
229,420,723 |
|
Gain on Exchange Rate |
- |
7,962,494 |
|
Gain on Derivative |
7,966,915 |
- |
|
Total Revenues |
11,635,278,305 |
8,464,073,956 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
11,042,361,321 |
7,660,214,636 |
|
Selling Expenses |
66,313,105 |
30,701,017 |
|
Administrative Expenses |
152,281,157 |
181,963,101 |
|
Loss on Exchange Rate |
1,435,461 |
- |
|
Loss on Derivative |
7,976,155 |
- |
|
Cost of Financial
Cost |
353,312,935 |
399,673,372 |
|
Total Expenses |
11,623,680,134 |
8,272,552,126 |
|
|
|
|
|
Profit Before Income
Tax |
11,598,171 |
191,521,830 |
|
[Reversal] Income Tax Expenses |
22,958,780 |
[6,997,238] |
|
Net Profit / [Loss] |
34,556,951 |
184,524,592 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
3.39 |
0.49 |
|
QUICK RATIO |
TIMES |
2.18 |
0.39 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2.07 |
1.39 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.17 |
0.78 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
26.88 |
39.73 |
|
INVENTORY TURNOVER |
TIMES |
13.58 |
9.19 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
42.79 |
131.08 |
|
RECEIVABLES TURNOVER |
TIMES |
8.53 |
2.78 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
6.58 |
14.87 |
|
CASH CONVERSION CYCLE |
DAYS |
63.09 |
155.94 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
96.39 |
93.14 |
|
SELLING & ADMINISTRATION |
% |
1.91 |
2.59 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
5.18 |
9.77 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.10 |
2.33 |
|
NET PROFIT MARGIN |
% |
0.30 |
2.24 |
|
RETURN ON EQUITY |
% |
0.50 |
9.50 |
|
RETURN ON ASSET |
% |
0.35 |
1.74 |
|
EARNING PER SHARE |
BAHT |
0.47 |
7.69 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.29 |
0.82 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.40 |
4.46 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
39.29 |
|
|
OPERATING PROFIT |
% |
(93.94) |
|
|
NET PROFIT |
% |
(81.27) |
|
|
FIXED ASSETS |
% |
(6.50) |
|
|
TOTAL ASSETS |
% |
(7.75) |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
5.18 |
Deteriorated |
Industrial
Average |
13.98 |
|
Net Profit Margin |
0.30 |
Deteriorated |
Industrial
Average |
4.31 |
|
Return on Assets |
0.35 |
Deteriorated |
Industrial
Average |
4.00 |
|
Return on Equity |
0.50 |
Deteriorated |
Industrial
Average |
7.52 |
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 5.18%. When
compared with the industry average, the ratio of the company was lower,
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 0.3%. 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 0.35%.
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 0.5%.
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 |
3.39 |
Impressive |
Industrial
Average |
1.63 |
|
Quick Ratio |
2.18 |
|
|
|
|
Cash Conversion Cycle |
63.09 |
|
|
|
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 3.39 times in 2011, increased from 0.49 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 2.18 times in 2011,
increased from 0.39 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 64 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.29 |
Impressive |
Industrial
Average |
0.41 |
|
Debt to Equity Ratio |
0.40 |
Impressive |
Industrial
Average |
0.75 |
|
Times Interest Earned |
- |
|
Industrial
Average |
6.16 |
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.29 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 |
2.07 |
Impressive |
Industrial
Average |
1.65 |
|
Total Assets Turnover |
1.17 |
Impressive |
Industrial
Average |
0.94 |
|
Inventory Conversion Period |
26.88 |
|
|
|
|
Inventory Turnover |
13.58 |
Impressive |
Industrial
Average |
5.52 |
|
Receivables Conversion Period |
42.79 |
|
|
|
|
Receivables Turnover |
8.53 |
Impressive |
Industrial
Average |
4.67 |
|
Payables Conversion Period |
6.58 |
|
|
|
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.52.70 |
|
UK Pound |
1 |
Rs.84.51 |
|
Euro |
1 |
Rs.68.16 |
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.