MIRA INFORM REPORT
|
Report Date : |
02.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
STANDARD
STEEL TRADING COMPANY
LIMITED |
|
|
|
|
Formerly Known As : |
STANDARD STEEL
TRADING LIMITED PARTNERSHIP |
|
|
|
|
Registered Office : |
79/192 Moo 19,
Soi Thanasit, Tepharak
Road, T. Bangpleeyai, A.
Bangplee, Samutprakarn 10540 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
12.07.2007 |
|
|
|
|
Com. Reg. No.: |
0115557020739 [Former : 0103550022351] |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
engaged
in distributing
and exporting
various types of aluminum, such
as Aluminum Round
Bar, Aluminum Square
Bar, Aluminum Angle Bar,
Aluminum Flat Bar,
Aluminum Sheet, Checker
Plate Aluminum Sheets
|
|
|
|
|
No of Employees : |
25 |
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 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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 achieved steady growth due largely to industrial and
agriculture exports - mostly electronics, agricultural commodities, automobiles
and parts, and processed foods. Unemployment, at less than 1% of the labor
force, stands as one of the lowest levels in the world, which puts upward
pressure on wages in some industries. Thailand also attracts nearly 2.5 million
migrant workers from neighboring countries. The Thai government in 2013
implemented a nation-wide 300 baht ($10) per day minimum wage policy and
deployed new tax reforms designed to lower rates on middle-income earners. The
Thai economy has weathered internal and external economic shocks in recent
years. The global economic recession severely cut Thailand's exports, with most
sectors experiencing double-digit drops. In late 2011 Thailand's recovery was
interrupted by historic flooding in the industrial areas in Bangkok and its
five surrounding provinces, crippling the manufacturing sector. The government
approved flood mitigation projects worth $11.7 billion, which were started in
2012, to prevent similar economic damage, and an additional $75 billion for
infrastructure over the following seven years. This was expected to lead to an
economic upsurge but growth has remained slow, in part due to ongoing political
unrest and resulting uncertainties. Spending on infrastructure will require
re-approval once a new government is seated.
|
Source : CIA |
Company
name
STANDARD STEEL
TRADING COMPANY LIMITED
[FORMER : STANDARD
STEEL TRADING LIMITED
PARTNERSHIP]
SUMMARY
BUSINESS
ADDRESS : 79/192 MOO
19, SOI THANASIT,
TEPHARAK ROAD,
T.
BANGPLEEYAI, A. BANGPLEE,
SAMUTPRAKARN 10540,
THAILAND
TELEPHONE : [66] 2174-6542-3
FAX :
[66] 2174-6544
E-MAIL
ADDRESS : standard-steel@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2007
REGISTRATION
NO. : 0115557020739 [Former : 0103550022351]
TAX
ID NO. : 3032801041
CAPITAL REGISTERED : BHT. 20,000,000
CAPITAL PAID-UP : BHT.
20,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. KACHAPOL SANGCHANTHAMANEE, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 25
LINES
OF BUSINESS : ALUMINUM
DISTRIBUTOR AND EXPORTER
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 July 12, 2007,
originally as a
limited partnership under
the registered name “Standard Steel
Trading Limited Partnership”, led
by Mr. Kachapol Sangchanthamanee and
other Thai partners,
to distribute various
types of aluminum
to both domestic
and international markets.
On
November 12, 2014,
its status was
converted to a
private limited company,
namely STANDARD STEEL
TRADING COMPANY LIMITED.
It currently employs
25 staff.
The
subject’s registered address
is 79/192 Moo
19, Soi Thanasit,
Tepharak Road, T. Bangpleeyai, A.
Bangplee, Samutprakarn 10540,
and this is the
subject’s current operation address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kachapol Sangchanthamanee |
|
Thai |
31 |
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Kachapol Sangchanthamanee is
the Managing Director.
He is Thai
nationality with the
age of 31 years
old.
BUSINESS
OPERATIONS
The subject
is engaged in
distributing and exporting
various types of
aluminum, such as
aluminum round bar,
aluminum square bar,
aluminum angle bar,
aluminum flat bar,
aluminum sheet, checker
plate aluminum sheets
PURCHASE
100% of the
products is purchased
from local suppliers.
SALES
The products are
sold by wholesale
to customers both
local and overseas
mainly in Republic
of China.
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
T/T.
BANKING
The
banker’s name was
not disclosed.
EMPLOYMENT
The
subject currently employs
25 staff.
LOCATION
DETAILS
The
premise is owned
for administrative office
at the heading
address. Premise is
located in provincial/industrial area.
COMMENT
The
economic sluggish has
affected virtually every aspect
of business, as
evidence from the decline consumption from various industries, while the subject’s business was
also hit from industrial
slowdown. Subject’s market in
2014 has to undergo many
changes and adjust
itself for facing
significant pressures.
FINANCIAL
INFORMATION
The
capital was registered at
Bht. 20,000,000 divided into 200,000 shares of
Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
November 11, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Kachapol Sangchanthamanee Nationality: Thai Address : 734
Soi Charansanitwong 75,
Bangplad,
Bangkok |
199,490 |
99.75 |
|
Mr. Ekapon Pratabsing Nationality: Thai Address : 200
Promrach Road, T. Naimuang, A.
Muang, Ubon Ratchathani |
500 |
0.25 |
|
Mr. Dennakorn Yutiphan Nationality: Thai Address : 35
Moo 8, T. Naso,
A. Gudchum, Yasothorn |
10 |
- |
Total Shareholders : 3
Share Structure [as
at November 11, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
200,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
200,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Thitiwat Supanpong No.
6711
BALANCE
SHEET [BAHT]
The latest financial figures published
as at December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
5,404,197.49 |
4,695,346.79 |
249,735.46 |
|
Trade Accounts &
Other Receivable |
5,940,933.89 |
4,967,159.87 |
24,624,052.29 |
|
Inventories |
6,730,107.90 |
4,358,700.00 |
2,162,779.64 |
|
Other Current Assets
|
2,742,105.66 |
25,521.35 |
- |
|
|
|
|
|
|
Total Current Assets
|
20,817,344.94 |
14,046,728.01 |
27,036,567.39 |
|
Long-term Loans |
21,300,000.00 |
21,300,000.00 |
7,300,000.00 |
|
Long-term Investment
|
- |
4,750,000.00 |
4,750,000.00 |
|
Fixed Assets |
17,029,323.91 |
12,826,510.40 |
13,160,160.94 |
|
Other Non - current Assets |
- |
30,000.00 |
30,000.00 |
|
Total Assets |
59,146,668.85 |
52,953,238.41 |
52,276,728.33 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft from Financial Institutions |
24,941,086.72 |
20,247,399.54 |
17,818,467.16 |
|
Trade Accounts & Other
Payable |
12,915,535.19 |
16,074,268.64 |
18,236,652.85 |
|
Current Portion of
Hire-purchase Payable |
1,330,177.56 |
- |
526,803.00 |
|
Accrued Income Tax |
- |
62,400.69 |
161,788.98 |
|
Current Portion of
Long-term Liabilities |
- |
526,803.00 |
- |
|
Other Current Liabilities |
17,471.46 |
17,917.34 |
161,788.98 |
|
|
|
|
|
|
Total Current Liabilities |
39,204,270.93 |
36,928,789.21 |
36,743,711.99 |
|
Hire-purchase Payable |
3,453,928.69 |
- |
- |
|
Long-term Loans |
- |
332,947.17 |
504,780.72 |
|
Total Liabilities |
42,658,199.62 |
37,261,736.38 |
37,248,492.71 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Capital Paid |
13,500,000.00 |
13,500,000.00 |
13,500,000.00 |
|
Retained Earning Unappropriated |
2,988,469.23 |
2,191,502.03 |
1,528,235.62 |
|
Total Shareholders' Equity |
16,488,469.23 |
15,691,502.03 |
15,028,235.62 |
|
Total Liabilities & Shareholders' Equity |
59,146,668.85 |
52,953,238.41 |
52,276,728.33 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales & Services Income |
205,560,096.92 |
272,883,492.40 |
127,699,256.73 |
|
Gain on Disposal of Assets |
208,209.63 |
- |
- |
|
Other Income |
- |
96,430.76 |
816,002.36 |
|
Total Revenues |
205,768,306.55 |
272,979,923.16 |
128,515,259.09 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
191,345,716.18 |
262,420,543.86 |
121,419,741.51 |
|
Selling and Administrative Expenses |
12,882,014.76 |
5,771,150.26 |
3,774,603.34 |
|
Other Expenses |
- |
- |
12.17 |
|
Total Expenses |
204,227,730.94 |
268,191,694.12 |
125,194,357.02 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
1,540,575.61 |
4,788,229.04 |
3,320,902.07 |
|
Financial Cost |
[658,608.41] |
[3,921,615.09] |
[2,418,338.26] |
|
Profit / [Loss] before Income
Tax |
881,967.20 |
866,613.95 |
902,563.81 |
|
Income Tax |
[85,000.00] |
[203,347.54] |
[270,769.14] |
|
Net Profit / [Loss] |
796,967.20 |
663,266.41 |
631,794.67 |
|
Retained Earning [Deficit], Beginning of
Year |
2,191,502.03 |
1,528,235.62 |
- |
|
|
|
|
|
|
Retained Earning [Deficit], End of Year |
2,988,469.23 |
2,191,502.03 |
631,794.67 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.53 |
0.38 |
0.74 |
|
QUICK RATIO |
TIMES |
0.29 |
0.26 |
0.68 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
12.07 |
21.27 |
9.70 |
|
TOTAL ASSETS TURNOVER |
TIMES |
3.48 |
5.15 |
2.44 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
12.84 |
6.06 |
6.50 |
|
INVENTORY TURNOVER |
TIMES |
28.43 |
60.21 |
56.14 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
10.55 |
6.64 |
70.38 |
|
RECEIVABLES TURNOVER |
TIMES |
34.60 |
54.94 |
5.19 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
24.64 |
22.36 |
54.82 |
|
CASH CONVERSION CYCLE |
DAYS |
(1.25) |
(9.65) |
22.06 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
93.09 |
96.17 |
95.08 |
|
SELLING & ADMINISTRATION |
% |
6.27 |
2.11 |
2.96 |
|
INTEREST |
% |
0.32 |
1.44 |
1.89 |
|
GROSS PROFIT MARGIN |
% |
7.02 |
3.87 |
5.56 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.75 |
1.75 |
2.60 |
|
NET PROFIT MARGIN |
% |
0.39 |
0.24 |
0.49 |
|
RETURN ON EQUITY |
% |
4.83 |
4.23 |
4.20 |
|
RETURN ON ASSET |
% |
1.35 |
1.25 |
1.21 |
|
EARNING PER SHARE |
BAHT |
5.90 |
4.91 |
4.68 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.72 |
0.70 |
0.71 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.59 |
2.37 |
2.48 |
|
TIME INTEREST EARNED |
TIMES |
2.34 |
1.22 |
1.37 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(24.67) |
113.69 |
|
|
OPERATING PROFIT |
% |
(67.83) |
44.18 |
|
|
NET PROFIT |
% |
20.16 |
4.98 |
|
|
FIXED ASSETS |
% |
32.77 |
(2.54) |
|
|
TOTAL ASSETS |
% |
11.70 |
1.29 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is -24.67%. Turnover has decreased from THB
272,883,492.40 in 2012 to THB 205,560,096.92 in 2013. While net profit has
increased from THB 663,266.41 in 2012 to THB 796,967.20 in 2013. And total
assets has increased from THB 52,953,238.41 in 2012 to THB 59,146,668.85 in
2013.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
7.02 |
Acceptable |
Industrial Average |
10.51 |
|
Net Profit Margin |
0.39 |
Deteriorated |
Industrial Average |
1.12 |
|
Return on Assets |
1.35 |
Acceptable |
Industrial Average |
2.16 |
|
Return on Equity |
4.83 |
Satisfactory |
Industrial Average |
6.33 |
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 7.02%. When
compared with the industry average, the ratio of the company was lower. This
indicated that company may have 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 0.39%.
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 1.35%.
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 4.83%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
0.53 |
Risky |
Industrial Average |
1.26 |
|
Quick Ratio |
0.29 |
|
|
|
|
Cash Conversion Cycle |
(1.25) |
|
|
|
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 0.53 times in 2013, increased from 0.38 times, then the company may not be
efficiently using its current assets. 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 0.29 times in 2013,
increased from 0.26 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 -2 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.72 |
Acceptable |
Industrial Average |
0.69 |
|
Debt to Equity Ratio |
2.59 |
Risky |
Industrial Average |
2.25 |
|
Times Interest Earned |
2.34 |
Impressive |
Industrial Average |
- |
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 higher the percentage means that the company is
using less equity and has stronger leverage position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 2.34 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 0.72 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 Stable
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
12.07 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
3.48 |
Impressive |
Industrial Average |
1.92 |
|
Inventory Conversion Period |
12.84 |
|
|
|
|
Inventory Turnover |
28.43 |
Impressive |
Industrial Average |
4.10 |
|
Receivables Conversion Period |
10.55 |
|
|
|
|
Receivables Turnover |
34.60 |
Impressive |
Industrial Average |
2.80 |
|
Payables Conversion Period |
24.64 |
|
|
|
The company's Account Receivable Ratio is calculated as 34.60 and 54.94 in
2013 and 2012 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate revenue. A lower ratio may indicate
over extension and collection problems. Conversely, a higher ratio may indicate
an overtly stringent policy. In this case, the company's A/R ratio in 2013
decreased from 2012. This would suggest the company had deteriorated in the
management of its debt collections.
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has increased from 6 days at the end
of 2012 to 13 days at the end of 2013. This represents a negative trend. And
Inventory turnover has decreased from 60.21 times in year 2012 to 28.43 times
in year 2013.
The company's Total Asset Turnover is calculated as 3.48 times and 5.15
times in 2013 and 2012 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Stable
Total Assets Turnover Uptrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.14 |
|
UK Pound |
1 |
Rs.97.05 |
|
Euro |
1 |
Rs.77.37 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.