MIRA
INFORM REPORT
|
Report Date : |
29.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
LEE
& STEEL COMPANY
LIMITED |
|
|
|
|
Formerly Known As : |
LEE & STEEL
LIMITED PARTNERSHIP |
|
|
|
|
Registered Office : |
92-94 Soi
Pathumkongka, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
17.07.1986 |
|
|
|
|
Com. Reg. No.: |
0105552105418 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Importer and distributor of steels and related products |
|
|
|
|
No. of Employees : |
90 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 : |
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 – 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
LEE &
STEEL COMPANY LIMITED
[FORMER :
LEE & STEEL
LIMITED PARTNERSHIP]
SUMMARY
BUSINESS
ADDRESS : 92-94
SOI PATHUMKONGKA, TRIMITR
ROAD,
SAMPHANTAWONG, BANGKOK
10100
TELEPHONE : [66] 2639-0140-6,
2639-0386-7
FAX :
[66] 2639-6364-5
E-MAIL
ADDRESS : leeandsteel@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1986
REGISTRATION
NO. : 0105552105418 [Former
: 0103529017280]
TAX
ID NO. : 3102389301
CAPITAL REGISTERED : BHT. 60,000,000
CAPITAL PAID-UP : BHT.
60,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MRS.
SRIRAT LEELAPRACHAKUL, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 90
LINES
OF BUSINESS : STEELS AND
RELATED PRODUCTS
IMPORTER 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 July 17,
1986 originally as
a limited partnership
under the name
style “LEE &
STEEL LIMITED PARTNERSHIP”
by Mrs. Punnee, Mrs. Srirat
and Mr. Veerayuth Leelaprachakul, to
import and distribute
wide range of
steels and metal
products. On October
1, 2009, its
status was changed
to private limited
company, namely LEE
& STEEL COMPANY
LIMITED. It currently
employs approximate 90
staff.
The subject’s registered address is 92-94 Soi
Pathumkongka, Trimitr Rd.,
Samphantawong, Bangkok 10100,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Weerayuth Leelaprachakul |
[+] |
Thai |
64 |
|
Mrs. Srirat Leelaprachakul |
[x] |
Thai |
64 |
|
Ms. Suwannee Leelaprachakul |
[-] |
Thai |
42 |
|
Mr. Surachai Leelaprachakul |
[+] |
Thai |
38 |
|
Mr. Suviroj Leelaprachakul |
|
Thai |
33 |
AUTHORIZED PERSON
Only the mentioned
director [x] signs,
or the mentioned
director [-] can
jointly sign with
one of the
directors [+] on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mrs. Srirat Leelaprachakul is
the Managing Director.
She is Thai
nationality with the
age of 64
years old.
Mr. Suviroj Leelaprachakul is
the Marketing Manager.
He is Thai nationality with
the age of 33 years
old.
Mrs. Lawan Vijakvichakorn is
the Sales Manager.
She is Thai
nationality.
Ms. Suwannee Leelaprachakul is
the Overseas Manager.
She is Thai
nationality with the
age of 42
years old.
Mrs. Saowanee Laohakarnniyom is
the Account &
Finance Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing wide
range of steels
and related products
including carbon steel
pipe & fittings,
stainless steel pipes & fittings, stainless
steel plate &
coil and stainless
steel bar shape,
round bar, square
bar, hexagon bar,
flat bar, angle
bar [grade 304, 304L, 316, 316L and
310S], as well as wire
rope, chain sling,
hoist and lifting
equipment and etc.,
mainly used in
heavy industry, such
as petroleum, oil and
gas, transportation, paper,
sugar, medicine, chemical
and construction.
PURCHASE
The
products are purchased
from suppliers and
agents both in
domestic and overseas
countries, such as
Japan, Singapore, Taiwan,
Germany, India, Africa,
Korea, Republic of
China, Finland, Sweden,
Spain, U.S.A. and
others.
MAJOR
SUPPLIERS
Thainox
Stainless Public Company
Limited : Thailand
Thai-German
Products Public Company
Limited : Thailand
Gunnebo
AB. : Sweden
The
Crosby Group Inc. : U.S.A.
Tokyo
Rope Mfg. Co.,
Ltd. : Japan
SALES
100%
of the products
is sold locally
by wholesale to
dealers and end-users.
RELATED AND AFFILIATED
COMPANIES
Veera Steel Import
Co., Ltd.
Business Type : Importer
and distributor of
wire rope, chain
sling, hoist and
zinc.
Lee Machinery Co.,
ltd.
Business Type :
Importer and distributor
of electric hoist
and chain sling.
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.
BUSINESS TRANSACTION
The products are
sold both by
cash and credit,
with the maximum
credit given at
30-60 days. Subject
is not found
to have problem
on its account
receivable.
BANKING
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately
90 staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
and warehouse in
3 storey building
of 2 row
shop houses at the
heading address. Premise
is located in
commercial area.
Branches:
-
35/392 Moo 3,
Bangna, Bangkok 10260.
-
1998/1 Moo
1, T. Samrong Nua,
A. Muang, Samutprakarn 10270.
-
415/9
Mahaprutharam Rd, Mahaprutharan, Bangrak,
Bangkok 10500.
-
85/3
Moo 3, Old
Railway Rd., Samrong,
Phrapradaeng, Samutprakarn 10130.
COMMENT
The
subject has become
one of the best
importer and supplier in
industrial products. Its
products range composes
of steels, slings,
steel pipe and
lifting devices, which come
from many Top-Class manufacturers
all around the world.
This enables the
subject to support
all levels of
customers, e.g. petroleum,
construction, sugar, ice, paper
and other consumer
products industry.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 60,000,000 divided
into 600,000 shares
of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at April 30,
2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Weerayuth Leelaprachakul Nationality: Thai Address : 405/12
Mahaprutharam Rd.,
Mahaprutharam, Bangrak, Bangkok
|
120,000 |
20.00 |
|
Mrs. Srirat Leelaprachakul Nationality: Thai Address : 92-94
Trimit Rd., Samphantawong, Bangkok |
120,000 |
20.00 |
|
Ms. Suwannee Leelaprachakul Nationality: Thai Address : 92-94
Trimit Rd., Samphantawong, Bangkok |
120,000 |
20.00 |
|
Mr. Surachai Leelaprachakul Nationality: Thai Address : 415/9
Mahaprutharam Rd.,
Mahaprutharam, Bangrak, Bangkok
|
120,000 |
20.00 |
|
Mr. Suviroj Leelaprachakul Nationality: Thai Address : 92-94
Trimit Rd., Samphantawong, Bangkok |
120,000 |
20.00 |
Total Shareholders : 5
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
600,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
5 |
600,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Niwest Chintanakavichai No.
5832
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash in hand
& at Bank
|
41,471,353.18 |
20,863,466.70 |
|
Trade Accounts &
Notes Receivable |
185,408,378.81 |
219,057,662.65 |
|
Inventories |
468,584,001.67 |
217,943,314.81 |
|
Undue Business Tax |
15,306,907.97 |
2,578,715.55 |
|
Other Current Assets
|
2,186,676.19 |
1,737,210.37 |
|
|
|
|
|
Total Current Assets
|
712,957,317.82 |
462,180,370.08 |
|
Fixed Assets |
129,136,475.98 |
130,171,493.27 |
|
Other Non-current Assets |
6,042,793.80 |
291,027.50 |
|
Total Assets |
848,136,587.60 |
592,642,890.85 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Short-term Loan from
Financial Institution |
339,512,622.66 |
199,959,019.44 |
|
Trade Accounts &
Notes Payable |
30,016,351.08 |
59,156,408.63 |
|
Current Portion of
Financial Lease Contract Liabilities |
1,339,658.47 |
1,222,092.00 |
|
Deposit Goods |
11,847,755.78 |
- |
|
Accrued Income Tax |
1,373,348.42 |
1,737,492.76 |
|
Other Current Liabilities |
2,384,745.19 |
1,620,652.16 |
|
|
|
|
|
Total Current Liabilities |
386,474,481.60 |
263,695,664.99 |
|
Financial Lease Contract Liabilities, Net |
2,384,117.29 |
888,796.89 |
|
Long-term Loan |
340,575,105.10 |
215,365,229.67 |
|
Total Liabilities |
729,433,703.99 |
479,949,691.55 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Capital Paid |
60,000,000.00 |
60,000,000.00 |
|
Retained Earning - Unappropriated |
58,702,883.61 |
52,693,199.30 |
|
Total Shareholders' Equity |
118,702,883.61 |
112,693,199.30 |
|
Total Liabilities &
Shareholders' Equity |
848,136,587.60 |
592,642,890.85 |
PROFIT &
LOSS ACCOUNT
|
Sale |
2011 |
2010 |
|
|
|
|
|
Sales |
774,710,913.98 |
724,457,203.48 |
|
Other Income |
2,095,350.99 |
7,690,892.58 |
|
Total Sales |
776,806,264.97 |
732,148,096.06 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
705,800,345.76 |
675,449,931.91 |
|
Selling Expenses |
5,421,042.75 |
6,168,418.40 |
|
Administrative Expenses |
51,345,720.64 |
39,756,313.31 |
|
Total Expenses |
762,567,109.15 |
721,374,663.62 |
|
|
|
|
|
Profit before Financial Cost & Income Tax |
14,239,155.82 |
10,773,432.44 |
|
Financial Cost |
[5,412,090.41] |
[2,973,220.02] |
|
Profit before Income
Tax |
8,827,065.41 |
7,800,212.42 |
|
Income Tax |
[2,817,381.10] |
[2,523,782.67] |
|
Net Profit / [Loss] |
6,009,684.31 |
5,276,429.75 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.84 |
1.75 |
|
QUICK RATIO |
TIMES |
0.59 |
0.91 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
6.00 |
5.57 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.91 |
1.22 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
242.33 |
117.77 |
|
INVENTORY TURNOVER |
TIMES |
1.51 |
3.10 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
87.35 |
110.37 |
|
RECEIVABLES TURNOVER |
TIMES |
4.18 |
3.31 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
15.52 |
31.97 |
|
CASH CONVERSION CYCLE |
DAYS |
314.16 |
196.17 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
91.10 |
93.24 |
|
SELLING & ADMINISTRATION |
% |
7.33 |
6.34 |
|
INTEREST |
% |
0.70 |
0.41 |
|
GROSS PROFIT MARGIN |
% |
9.17 |
7.83 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.84 |
1.49 |
|
NET PROFIT MARGIN |
% |
0.78 |
0.73 |
|
RETURN ON EQUITY |
% |
5.06 |
4.68 |
|
RETURN ON ASSET |
% |
0.71 |
0.89 |
|
EARNING PER SHARE |
BAHT |
10.02 |
8.79 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.86 |
0.81 |
|
DEBT TO EQUITY RATIO |
TIMES |
6.15 |
4.26 |
|
TIME INTEREST EARNED |
TIMES |
2.63 |
3.62 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
6.94 |
|
|
OPERATING PROFIT |
% |
32.17 |
|
|
NET PROFIT |
% |
13.90 |
|
|
FIXED ASSETS |
% |
(0.80) |
|
|
TOTAL ASSETS |
% |
43.11 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
9.17 |
Deteriorated |
Industrial Average |
23.35 |
|
Net Profit Margin |
0.78 |
Deteriorated |
Industrial
Average |
3.43 |
|
Return on Assets |
0.71 |
Deteriorated |
Industrial
Average |
3.72 |
|
Return on Equity |
5.06 |
Acceptable |
Industrial
Average |
6.93 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from sales 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 9.17%. 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 0.78%.
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 0.71%.
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 5.06%.
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 |
1.84 |
Impressive |
Industrial
Average |
1.73 |
|
Quick Ratio |
0.59 |
|
|
|
|
Cash Conversion Cycle |
314.16 |
|
|
|
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 1.84 times in 2011, increased from 1.75 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 0.59 times in 2011,
decreased from 0.91 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 315 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.86 |
Acceptable |
Industrial
Average |
0.43 |
|
Debt to Equity Ratio |
6.15 |
Risky |
Industrial
Average |
0.83 |
|
Times Interest Earned |
2.63 |
Satisfactory |
Industrial
Average |
3.23 |
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 2.64 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 0.86 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 Downtrend
Times Interest Earned Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
6.00 |
Impressive |
Industrial
Average |
2.17 |
|
Total Assets Turnover |
0.91 |
Satisfactory |
Industrial
Average |
1.08 |
|
Inventory Conversion Period |
242.33 |
|
|
|
|
Inventory Turnover |
1.51 |
Deteriorated |
Industrial
Average |
5.31 |
|
Receivables Conversion Period |
87.35 |
|
|
|
|
Receivables Turnover |
4.18 |
Satisfactory |
Industrial
Average |
4.93 |
|
Payables Conversion Period |
15.52 |
|
|
|
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.85.72 |
|
Euro |
1 |
Rs.68.15 |
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.