MIRA
INFORM REPORT
|
Report Date : |
21.09.2012 |
IDENTIFICATION DETAILS
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Name : |
SATHORN CHEM CO., LTD. |
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Registered Office : |
142/31 Soi Suksavidhya, |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
09.06.1988 |
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Com. Reg. No.: |
0105531042298 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer & Distributor of Textile Chemicals |
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No. of Employees : |
20 |
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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 : |
Satisfactory |
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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 – 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 |
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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
SATHORN
CHEM CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 142/31 SOI
SUKSAVIDHYA,
NORTH SATHORN
ROAD, SILOM,
BANGRAK, BANGKOK
10500
TELEPHONE : [66] 2892-0920
FAX :
[66] 2892-0598,
2892-0928
E-MAIL
ADDRESS : vpc@vpc-group.com
sales@vpc-group.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1988
REGISTRATION
NO. : 0105531042298 [Former : 4233/2531]
TAX
ID NO. : 3101530636
CAPITAL REGISTERED : BHT. 30,000,000
CAPITAL PAID-UP : BHT.
30,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
PRAPAT PIMPRAPOTE, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 20
LINES
OF BUSINESS : TEXTILE CHEMICALS
IMPORTER &
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 June
9, 1988 as
a private limited
company under the
registered name SATHORN CHEM
CO., LTD., by
Thai groups, in
order to import
and distribute various
kinds of textile chemicals
to domestic market.
It currently employs
approximate 20 staff.
The subject’s registered
address is 142/31
Soi Suksavidhaya, North
Sathorn Rd., Silom,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Prapat Pimprapote |
|
Thai |
59 |
|
Mr. Suchart Chavalitthara |
|
Thai |
60 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Prapat Pimprapote
is the Managing
Director.
He is Thai
nationality with the
age of 59
years old.
Mr. Suchart Chavalitthara is
the Deputy Managing
Director & General
Manager.
He is Thai
nationality with the
age of 60
years old.
Mr. Somchai Winyooviriyawong is
the Sales Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activities
are importer and
distributor various kinds
of textile chemicals,
including dyestuffs, textile
auxiliary chemical and
masterbatch.
IMPORT [COUNTRIES]
80% of its
products is imported
from Germany, Japan,
India, Republic of
China, France, Spain,
Netherlands, United Kingdom
and other countries,
the remaining 20%
is purchased from local suppliers.
MAJOR SUPPLIERS
Chemische Fabrik Tubingen
R. Beitlich GmbH & Co. : Germany
ISP Alginate [U.K.]
Ltd. : United
Kingdom
Trevira GmbH. : Germany
Leuna-Tenside GmbH. : Germany
SALES [LOCAL]
100% of its products is
sold locally by
wholesale to manufacturers
and end-users.
RELATED & AFFILIATED
COMPANIES
V P C Chemical Co.,
Ltd.
Business Type: Distributor of
Textile Chemical
Thai Innovation Chemical
Co., Ltd.
Business Type : Importer and
distributor of industrial
chemicals
T. N. H. Import and
Export Co., Ltd.
Business Type :
Service provider of
textile bleaching, dyeing, printing
and finishing.
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
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Sales are by
cash or on
the credits term
of 30-60 days.
Imports are by
L/C at sight
or T/T.
BANKING
Kasikornbank Public Co.,
Ltd.
[Head Office : 1
Kasikorn Lane, Rajburana
Rd., Rajburana, Bangkok
10140]
EMPLOYMENT
The subject employs
approximately 20 staff.
[office and sales staff]
LOCATION DETAILS
The premise is
rented for administrative office
and warehouse at
the heading address.
Premise is located
in commercial area.
COMMENT
The
subject’s sales revenue
in 2011 was
slightly dropped from
the previous year.
In fact, its
sales in 2011
was disclosed at
good level for
the first nine
months, but consumption
slowdown had shown
in the last
quarter due to
massive floods in the
large area of the country. However, the
situation is now
back to normal
and consumption of
textile chemicals from
textile industry is
improving with a
regular demand. Therefore, the subject anticipates
a good business
prospect this year.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 3,000,000 divided into 3,000
shares of Bht. 1,000 each
with fully paid.
The
capital was increased
later as follows:
Bht. 6,000,000
on November 4,
1996
Bht.
30,000,000 on August
6, 1999
The latest
registered capital was
increased to Bht.
30,000,000 divided into 30,000
shares of Bht.
1,000 each with
fully paid.
THE SHAREHOLDERS LISTED
WARE : [as at
April 29, 2012]
|
NAME |
HOLDING |
% |
|
Mr. Prapat Pimprapote Nationality: Thai Address : 62 Charoennakorn 58
Rd., Bukkalo, Thonburi,
Bangkok |
29,099 |
84.98 |
|
Ms. Natthita Pimprapote Nationality: Thai Address : 14/47 Moo 9,
Rama 2 Rd., Bangmod,
Jomthong, Bangkok |
300 |
5.00 |
|
Mrs. Suchada Kaewpluek Nationality: Thai Address : 14/47
Moo 9, Rama 2 Rd., Bangmod,
Jomthong, Bangkok |
150 |
2.50 |
|
Mr. Suchart Chavalitthara Nationality: Thai Address : 3/152 Moo 2,
Sukhumvit Rd., Bangchak,
Prakanong, Bangkok |
150 |
2.50 |
|
Ms. Suthaporn Jarusakul Nationality: Thai Address : 111/18 Thatapao,
Muang, Chumporn |
150 |
2.50 |
|
Mr. Sorachai Siriphophankul Nationality: Thai Address : 112/1698 Sukhumvit
Rd., Bangna, Bangkok |
150 |
2.50 |
|
Ms. Rattikarn Chuensuk Nationality: Thai Address : 6/45 Ladprao 25
Rd., Ladyao, Jatujak, Bangkok |
1 |
0.02 |
Total Shareholders : 7
Share Structure [as
at April 29,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
7 |
30,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
7 |
30,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Ratana Pongputhipoon
No. 3250
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash in Hand & at Bank
|
203,420.18 |
186,851.16 |
|
Short-term Investment |
13,283.85 |
13,158.84 |
|
Trade Accounts Receivable |
44,458,098.81 |
43,033,068.00 |
|
Inventories |
24,724,147.89 |
18,034,728.04 |
|
Other Current Assets |
35,737,772.72 |
51,415,862.67 |
|
Total Current Assets
|
105,136,723.45 |
112,683,668.71 |
|
|
|
|
|
Fixed Assets |
10,924,628.83 |
11,340,585.19 |
|
Other Non-current Assets |
3,019,413.63 |
644,076.64 |
|
Total Assets |
119,080,765.91 |
124,668,330.54 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Bank Overdraft & Short-term Loan |
16,416,475.40 |
16,658,814.89 |
|
Trade Accounts Payable |
14,352,826.79 |
20,243,320.44 |
|
Current Portion of
Hire-purchase Payable |
1,019,264.79 |
1,116,233.29 |
|
Other Current Liabilities |
2,671,578.71 |
7,625,859.59 |
|
Total Current Liabilities |
34,460,145.69 |
45,644,228.21 |
|
Hire-purchase Payable - Net of
Current Portion |
405,839.10 |
1,063,135.14 |
|
Total Liabilities |
34,865,984.79 |
46,707,363.35 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 30,000 shares |
30,000,000.00 |
30,000,000.00 |
|
Capital Paid |
30,000,000.00 |
30,000,000.00 |
|
Retained Earning -
Unappropriated |
54,214,781.12 |
47,960,967.19 |
|
Total Shareholders' Equity |
84,214,781.12 |
77,960,967.19 |
|
Total Liabilities & Shareholders' Equity |
119,080,765.91 |
124,668,330.54 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
170,129,265.13 |
185,657,477.67 |
|
Interest Income |
146.85 |
72.94 |
|
Other Income |
193,093.90 |
3,089,450.42 |
|
Total Revenues |
170,322,505.88 |
188,747,001.03 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
139,715,683.52 |
152,944,740.66 |
|
Selling Expenses |
8,198,711.60 |
8,893,728.31 |
|
Administrative Expenses |
12,217,785.14 |
11,486,414.80 |
|
Other Expenses |
70,417.39 |
- |
|
Total Expenses |
160,202,597.65 |
173,324,883.77 |
|
Profit / [Loss] before Finance
Cost & Income Tax |
10,119,908.23 |
15,422,117.26 |
|
Finance Cost |
[1,030,292.16] |
[1,352,679.48] |
|
Profit / [Loss] before Income Tax |
9,089,616.07 |
14,069,437.78 |
|
Income Tax |
[2,835,802.14] |
[4,364,037.00] |
|
Net Profit / [Loss] |
6,253,813.93 |
9,705,400.78 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
3.05 |
2.47 |
|
QUICK RATIO |
TIMES |
1.30 |
0.95 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
15.57 |
16.37 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.43 |
1.49 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
64.59 |
43.04 |
|
INVENTORY TURNOVER |
TIMES |
5.65 |
8.48 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
95.38 |
84.60 |
|
RECEIVABLES TURNOVER |
TIMES |
3.83 |
4.31 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
37.50 |
48.31 |
|
CASH CONVERSION CYCLE |
DAYS |
122.48 |
79.33 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
82.12 |
82.38 |
|
SELLING & ADMINISTRATION |
% |
12.00 |
10.98 |
|
INTEREST |
% |
0.61 |
0.73 |
|
GROSS PROFIT MARGIN |
% |
17.99 |
19.28 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.95 |
8.31 |
|
NET PROFIT MARGIN |
% |
3.68 |
5.23 |
|
RETURN ON EQUITY |
% |
7.43 |
12.45 |
|
RETURN ON ASSET |
% |
5.25 |
7.78 |
|
EARNING PER SHARE |
BAHT |
208.46 |
323.51 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.29 |
0.37 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.41 |
0.60 |
|
TIME INTEREST EARNED |
TIMES |
9.82 |
11.40 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(8.36) |
|
|
OPERATING PROFIT |
% |
(34.38) |
|
|
NET PROFIT |
% |
(35.56) |
|
|
FIXED ASSETS |
% |
(3.67) |
|
|
TOTAL ASSETS |
% |
(4.48) |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
17.99 |
Impressive |
Industrial Average |
12.07 |
|
Net Profit Margin |
3.68 |
Impressive |
Industrial
Average |
1.82 |
|
Return on Assets |
5.25 |
Impressive |
Industrial
Average |
4.28 |
|
Return on Equity |
7.43 |
Acceptable |
Industrial
Average |
11.66 |
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 17.99%. 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 3.68%,
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
5.25%, 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. When compared with the
industry average, it was lower, the company's figure is 7.43%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY RATIO
|
Current Ratio |
3.05 |
Impressive |
Industrial
Average |
1.50 |
|
Quick Ratio |
1.30 |
|
|
|
|
Cash Conversion Cycle |
122.48 |
|
|
|
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 3.05 times in 2011, increase from 2.47 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 1.3 times in 2011,
increase from 0.95 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 123 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 |
0.58 |
|
Debt to Equity Ratio |
0.41 |
Impressive |
Industrial
Average |
1.51 |
|
Times Interest Earned |
9.82 |
Impressive |
Industrial
Average |
3.36 |
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 9.83 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 0.29 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 |
15.57 |
Impressive |
Industrial
Average |
10.00 |
|
Total Assets Turnover |
1.43 |
Acceptable |
Industrial
Average |
2.32 |
|
Inventory Conversion Period |
64.59 |
|
|
|
|
Inventory Turnover |
5.65 |
Satisfactory |
Industrial
Average |
6.90 |
|
Receivables Conversion Period |
95.38 |
|
|
|
|
Receivables Turnover |
3.83 |
Satisfactory |
Industrial
Average |
4.46 |
|
Payables Conversion Period |
37.50 |
|
|
|
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 Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.34 |
|
|
1 |
Rs.87.91 |
|
Euro |
1 |
Rs.70.57 |
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.