MIRA INFORM REPORT
|
Report Date : |
03.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
CHALONG LATEX INDUSTRY CO., LTD. |
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Registered Office : |
75/1 Moo 8, Chana-Nongjik Road, Banna, Chana, Songkhla 90130 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
18.06.1986 |
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Com. Reg. No.: |
0905529000322 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Exporter and Distributor of Natural Rubber and Latex Products |
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No. of Employees : |
120 |
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 |
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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 |
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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
CHALONG
LATEX INDUSTRY CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 75/1
MOO 8, CHANA-NONGJIK
ROAD, BANNA,
CHANA, SONGKHLA
90130
TELEPHONE : [66] 74
207-656-9
FAX :
[66] 74
207-655
E-MAIL
ADDRESS : clitex@loxinfo.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1986
REGISTRATION
NO. : 0905529000322
TAX
ID NO. : 3901006997
CAPITAL REGISTERED : BHT. 70,000,000
CAPITAL PAID-UP : BHT.
70,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. CHALONG TECHAPATRAKUL, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 120
LINES
OF BUSINESS : NATURAL RUBBER
AND LATEX PRODUCTS
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 June 18,
1986 as a
private limited company under
the registered name CHALONG
LATEX INDUSTRY CO.,
LTD., by Thai
groups, with the business
objective to manufacture
natural rubber and
latex products for
both export and
domestic markets, with
BOI promoted by
Board of Investment [BOI]. It currently
employs approximate 120 staff.
The subject’s registered
address is 75/1
Moo 8, Chana-Nongjik
Rd., Banna, Chana,
Songkhla 90130, and
this is the
subject’s current operation
address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Chalong Techapatrakul |
[x] |
Thai |
68 |
|
Mrs. Ladawan Techapatrakul |
[x] |
Thai |
69 |
|
Mr. Apichart Techapatrakul |
[x] |
Thai |
39 |
|
Mr. Chaiyuth Techapatrakul |
|
Thai |
34 |
|
Mrs. Kobkul Suthamprachak |
|
Thai |
53 |
|
Mr. Prayoon Suthamprachak |
[x] |
Thai |
64 |
AUTHORIZED PERSON
Any two of
the mentioned directors
[x] can jointly
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Chalong Techapatrakul is
the Managing Director.
He is Thai
nationality with the
age of 68
years old.
Mrs. Ladawan Techapatrakul is
the Deputy Managing
Director.
She is Thai
nationality with the
age of 69
years old.
Mr. Apichart Techapatrakul is
the Sales & Marketing Manager.
He is Thai
nationality with the
age of 39
years old.
Mr. Chaiyuth Techapatrakul
is the Chief
of Exports.
He is Thai
nationality with the
age of 34
years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing, exporting and
distributing natural rubber
products, especially STR
products, such as
STR 5CV50, STR
5CV60, STR 5L, STR
XL, and skim
block, with the production
capacity of 18,000
tons per annum,
as well as natural
latex concentrated, comprising
centrifuged latex high
ammonia 60% DRC,
centrifuged latex medium
ammonia 60% DRC
and centrifuged latex
low ammonia 60%
DRC.
The products are
supplied to various
industries, such as
rubber products, industrial
gloves, shoe sole,
furniture, automobile parts
industries and etc.
PRODUCTION CAPACITY
Natural Latex
Concentrated : 30,000
tons per annum
STR products
: 18,000
tons per annum
PURCHASE
100%
of natural latex and chemical
are purchased from
local planters and
suppliers.
SALES
90% of the products is
exported to Indonesia,
Republic of China,
Hong Kong, Singapore,
U.S.A., Japan, India,
Vietnam, and the
countries in Middle
East and Europe,
the remaining 10%
is sold locally.
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.
Exports are against
L/C or T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
Thanachart
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
120 staff.
LOCATION DETAILS
The
premise is owned
for administrative office
and factory on
320,000 square meters
of land at
the heading address.
Premise is located
in provincial, in the Southern
region.
COMMENT
Subject is
a manufacturer, distributor and
exporter of rubber and latex
products. The products are
for industrial users.
The world largest natural rubber consumer, China, has consumed
natural rubber steadily in the first
seven months of this year. China’s tire
production in July rose 5.5% compared with a year earlier to 78.97 million
units. In the first seven months of the year, tire output totaled 499.54
million units, up 4.9% compared with January – July 2011. Meanwhile, China
imported 990,000 tons of natural rubber
valued US$3.42 billion during the
first half of 2012, up 12.8% in
volume but down 17.6% in value year on year.
A steady growth in
China’s NR demand in the first seven months of this year is one of many reasons
that Thai producers of
natural rubber will
hold export volume
until natural prices will improve to a certain level that
is acceptable by both producers and consumers.
FINANCIAL INFORMATION
The
capital was registered at
Bht. 2,000,000 divided into 200
shares of Bht.
10,000 each with fully
paid.
The
capital was increased
later as follows:
Bht. 10,000,000
on June 3,
1987
Bht. 20,000,000
on October 12,
1994
Bht. 30,000,000
on September 10,
1996
Bht. 40,000,000
on July 29,
2004
Bht. 50,000,000
on October 3,
2007
Bht. 70,000,000
on March 30,
2010
The
latest registered capital
was increased to
Bht. 70 million, divided into
7,000 shares of
Bht. 10,000 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Ladawan Techapatrakul Nationality: Thai Address : 22
Moo 2, Banna,
Chana, Songkhla |
2,895 |
41.36 |
|
Mr. Chalong Techapatrakul Nationality: Thai Address : 22
Moo 2, Banna,
Chana, Songkhla |
2,700 |
38.57 |
|
Mr. Apichart Techapatrakul Nationality: Thai Address : 76
Moo 8,, Banna, Chana,
Songkhla |
770 |
11.00 |
|
Mr. Chaiyuth Techapatrakul Nationality: Thai Address : 75/1
Moo 8, Banna, Chana,
Songkhla |
608 |
8.69 |
|
Mr. Kasem Techapatrakul Nationality: Thai Address : 59/2
Moo 3, Banna, Chana,
Songkhla |
10 |
0.14 |
|
Mr. Prayoon Suthamprachak Nationality: Thai Address : 32
Srinil 1 Rd.,
Hadyai, Songkhla |
10 |
0.14 |
|
Mrs. Kobkul Suthamprachak Nationality: Thai Address : 2
Yala Rd., Sataeng,
Yala |
7 |
0.10 |
Total Shareholders : 7
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
7,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
7,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Somkaew
Runglertkriengkrai No. 2715
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalent |
26,670,553.63 |
40,070,003.61 |
|
Investment - Fixed Account |
10,404,530.33 |
13,575,325.30 |
|
Trade Accounts Receivable |
108,015,327.94 |
93,608,001.50 |
|
Short-term Lending to
Related Person |
13,300,000.00 |
- |
|
Inventories |
61,106,762.37 |
99,008,676.85 |
|
Other Current Assets |
13,446,121.58 |
2,128,419.78 |
|
|
|
|
|
Total Current Assets
|
232,943,295.85 |
248,390,427.04 |
|
|
|
|
|
Long-term Investment |
1,200,000.00 |
1,200,000.00 |
|
Fixed Assets |
157,273,962.99 |
151,510,780.19 |
|
Other Non - current Assets |
4,377,977.09 |
4,300,187.80 |
|
Total Assets |
392,795,235.93 |
405,401,395.03 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Bank Overdraft & Short-term
Loan from Financial Institution |
226,689,806.82 |
254,750,000.00 |
|
Trade Accounts &
Other Payable |
10,038,391.81 |
6,371,355.82 |
|
Short-term Loan from Related Company |
4,000,000.00 |
- |
|
Other Current Liabilities |
5,462,830.55 |
6,653,977.72 |
|
|
|
|
|
Total Current Liabilities |
246,191,029.18 |
267,775,333.54 |
|
|
|
|
|
Long-term Loan from Financial
Institution |
65,543,786.80 |
85,782,525.10 |
|
Total Liabilities |
311,734,815.98 |
353,557,858.64 |
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
Share capital : Baht 10,000
par value authorized, issued
and fully paid share
capital 7,000 shares |
70,000,000.00 |
70,000,000.00 |
|
|
|
|
|
Capital Paid |
70,000,000.00 |
70,000,000.00 |
|
Retained Earning : Appropriated for
Statutory Reserve |
4,000,000.00 |
4,000,000.00 |
|
Unappropriated |
7,060,419.95 |
[22,156,463.61] |
|
Total Shareholders' Equity |
81,060,419.95 |
51,843,536.39 |
|
Total Liabilities & Shareholders' Equity |
392,795,235.93 |
405,401,395.03 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales Income |
1,867,957,272.73 |
2,051,035,919.96 |
|
Other Income |
16,936,558.76 |
4,133,567.86 |
|
Total Revenues |
1,884,893,831.49 |
2,055,169,487.82 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
1,732,288,481.05 |
1,970,049,895.29 |
|
Selling Expenses |
86,909,116.36 |
74,552,831.90 |
|
Administrative Expenses |
16,730,905.87 |
19,994,233.46 |
|
Total Expenses |
1,835,928,503.28 |
2,064,596,960.65 |
|
|
|
|
|
Profit before Financial Cost |
48,965,328.21 |
[9,427,472.83] |
|
Financial Cost |
[19,748,444.65] |
[15,404,627.55] |
|
|
|
|
|
Net Profit / [Loss] |
29,216,883.56 |
[24,832,100.38] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.95 |
0.93 |
|
QUICK RATIO |
TIMES |
0.64 |
0.55 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
11.88 |
13.54 |
|
TOTAL ASSETS TURNOVER |
TIMES |
4.76 |
5.06 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
12.88 |
18.34 |
|
INVENTORY TURNOVER |
TIMES |
28.35 |
19.90 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
21.11 |
16.66 |
|
RECEIVABLES TURNOVER |
TIMES |
17.29 |
21.91 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
2.12 |
1.18 |
|
CASH CONVERSION CYCLE |
DAYS |
31.87 |
33.82 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
92.74 |
96.05 |
|
SELLING & ADMINISTRATION |
% |
5.55 |
4.61 |
|
INTEREST |
% |
1.06 |
0.75 |
|
GROSS PROFIT MARGIN |
% |
8.17 |
4.15 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.62 |
(0.46) |
|
NET PROFIT MARGIN |
% |
1.56 |
(1.21) |
|
RETURN ON EQUITY |
% |
36.04 |
(47.90) |
|
RETURN ON ASSET |
% |
7.44 |
(6.13) |
|
EARNING PER SHARE |
BAHT |
4,173.84 |
(3,547.44) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.79 |
0.87 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.85 |
6.82 |
|
TIME INTEREST EARNED |
TIMES |
2.48 |
(0.61) |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(8.93) |
|
|
OPERATING PROFIT |
% |
(619.39) |
|
|
NET PROFIT |
% |
217.66 |
|
|
FIXED ASSETS |
% |
3.80 |
|
|
TOTAL ASSETS |
% |
(3.11) |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.17 |
Satisfactory |
Industrial
Average |
8.82 |
|
Net Profit Margin |
1.56 |
Impressive |
Industrial
Average |
(0.36) |
|
Return on Assets |
7.44 |
Impressive |
Industrial
Average |
0.60 |
|
Return on Equity |
36.04 |
Impressive |
Industrial
Average |
0.61 |
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 8.17%. 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 1.56%, hibher 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 7.44%, 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 36.04%, 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 |
0.95 |
Risky |
Industrial
Average |
23.66 |
|
Quick Ratio |
0.64 |
|
|
|
|
Cash Conversion Cycle |
31.87 |
|
|
|
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 0.95 times in 2011, increased from 0.93 times, then the company may have
problems meeting its short-term obligations. 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 0.64 times in 2011,
increased from 0.55 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 32 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.79 |
Impressive |
Industrial
Average |
0.87 |
|
Debt to Equity Ratio |
3.85 |
Risky |
Industrial
Average |
2.71 |
|
Times Interest Earned |
2.48 |
Deteriorated |
Industrial
Average |
6.65 |
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 2.48 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 0.79 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 |
11.88 |
Deteriorated |
Industrial
Average |
26.65 |
|
Total Assets Turnover |
4.76 |
Impressive |
Industrial
Average |
2.91 |
|
Inventory Conversion Period |
12.88 |
|
|
|
|
Inventory Turnover |
28.35 |
Impressive |
Industrial
Average |
10.81 |
|
Receivables Conversion Period |
21.11 |
|
|
|
|
Receivables Turnover |
17.29 |
Satisfactory |
Industrial
Average |
17.55 |
|
Payables Conversion Period |
2.12 |
|
|
|
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.55.72 |
|
|
1 |
Rs.87.95 |
|
Euro |
1 |
Rs.69.65 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.