MIRA
INFORM REPORT
|
Report Date : |
03.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
LIBERTY STEEL
SIAM LTD. |
|
|
|
|
Formerly Known As : |
SUMMIT STEELPIPE LTD. |
|
|
|
|
Registered Office : |
27th Floor, |
|
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Country : |
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|
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Financials (as on) : |
31.12.2012 |
|
|
|
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Date of Incorporation : |
15.02.2011 |
|
|
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Com. Reg. No.: |
0105554023044 |
|
|
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|
Legal Form : |
Private Limited Company |
|
|
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Line of Business : |
Importer and Distributor of Steels |
|
|
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|
No of Employees : |
50 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow and Delayed |
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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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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 is implementing a nation-wide 300
baht ($10) per day minimum wage policy and deploying 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.
|
Source
: CIA |
COMPANY NAME
LIBERTY
STEEL SIAM LTD.
[Former
: SUMMIT STEELPIPE
LTD.]
SUMMARY
BUSINESS
ADDRESS : 27th FLOOR,
CHARN ISSARA TOWER
II,
2922/298 NEW
PETCHBURI ROAD, BANGKAPI,
HUAYKWANG, BANGKOK
10320, THAILAND
TELEPHONE : [66] 2716-5988,
2716-5290
FAX : [66] 2716-5289
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2011
REGISTRATION
NO. : 0105554023044
TAX
ID NO. : 3034339474
CAPITAL REGISTERED : BHT. 200,000,000
CAPITAL PAID-UP : BHT.
200,000,000
SHAREHOLDER’S PROPORTION : THAI : 51.00%
SINGAPOREAN :
49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. BOONCHAI JIRAPONGTRAKUL, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 50
LINES
OF BUSINESS : STEELS
IMPORTER AND
DISTRIBUTOR
CORPORATE PROFILE |
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on February 15, 2011
as a private
limited company under
the originally registered
name “Summit Steelpipe Ltd.”, by
Thai and Singaporean
groups. On September 21,
2012, its registered
name was changed
to LIBERTY STEEL
SIAM LTD. Its
business objective is to
distribute various kinds
of steels. It currently
employs approximately 50
staff.
The
subject’s registered address
is 27th Floor,
Charn Issara Tower II,
2922/298 New Petchburi Road, Bangkapi, Huaykwang, Bangkok 10320,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sanjeev Gupta |
|
Indian |
42 |
|
Mr. Chatree Ananrojwong |
|
Thai |
50 |
|
Mr. Boonchai Jirapongtrakul |
|
Thai |
45 |
|
Mr. Roy Chowdhury Subhajit |
|
Indian |
49 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Boonchai Jirapongtrakul is
the Managing Director.
He is Thai
nationality with the
age of 45 years
old.
BUSINESS OPERATIONS
The subject’s
core business is
engaged in distributing
various kinds of
steels, such as
hot rolled coils,
hot rolled strip
in coils, steel
sheet & plate, steel light
lip channel, steel
round bar, steel
deformed bar, steel square
pipe, steel angle
bar, steel channel
bar, steel flat
bar, H-beam, I-beam
and etc., as well
as importing and supplying
of metal scrap
for hot rolled
coil and other
metal smelting industry.
PURCHASE
Most of the
products are purchased
from local suppliers,
the remaining is
imported from Republic
of China, India
and Korea.
MAJOR SUPPLIERS
Thai Yuan Metal
Public Company Limited : Thailand
Sahaviriya Steel Industries
Public Company Limited : Thailand
SALES
100% of the
products is sold
locally to wholesalers,
manufacturers and end-users.
MAJOR CUSTOMERS
G. Steel Public Company
Limited
G. J. Steel Public
Company Limited
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
according to 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
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject currently employs
approximately 50 staff.
LOCATION DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in commercial area.
Warehouse
is located at
320 Soi Bangbon
5, Bangbon Road,
Bangbon, Bangkok 10150.
COMMENT
There was a trend toward
stronger demand of
steels from local
industries such as automobiles,
electrical appliances and
construction as well
as a rising
demand of steel
for other related
industries both local
and exported markets.
In
June 2013, the
subject has also
increased its registered
capital to Bht.
200,000,000 and paid-up capital in
full amount, this
would also assist
on its financial
liquidity flow.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 10,000,000 divided
into 100,000 shares
of Bht. 100
each with fully
paid.
The
capital was increased
later as follows:
Bht. 100,000,000
on December 4,
2012
Bht. 200,000,000
on June 27,
2013
The
latest registered capital
was increased to
Bht. 200,000,000 divided into
2,000,000 shares of
Bht. 100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
August 9, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Liberty Siam Holdings
Pte. Ltd. Nationality: Singaporean Address : 101
Cecil Street, # 19-08 Tong-Eng Building, Singapore |
980,000 |
49.00 |
|
Thai Yuan Metal
Public Company Limited Nationality: Thai Address : 7/4, 7/6
Moo 1, Ekachai
Road, Kaerai,
Krathumbaen, Samutsakorn |
850,000 |
42.50 |
|
Hidaka Yookoo Enterprises
Co., Ltd. Nationality: Thai Address : 27
Soi Bangna-Trad 25,
Bangna-Trad Rd.,
Bangna, Bangkok |
100,000 |
5.00 |
|
Mr. Nakapat Yimsetthee Nationality: Thai Address : 956/3-6
Therdthai Road, Taladplu,
Thonburi, Bangkok |
40,000 |
2.00 |
|
Mr. Chatree Ananrojwong Nationality: Thai Address : 705
Moo 15, T. Bangkaew, A. Bangplee,
Samutprakarn |
20,000 |
1.00 |
|
Mr. Somsak Wongsirisap Nationality: Thai Address : 31/70
Moo 10, Bangpai,
Bangkae,
Bangkok |
10,000 |
0.50 |
Total Shareholders : 6
Share Structure [as
at August 9,
2013]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
1,020,000 |
51.00 |
|
Foreign-Singaporean |
1 |
980,000 |
49.00 |
|
Total |
6 |
2,000,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO
Mr. Vichai Rujitanont No.
4084
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2012 &
2011 were:
ASSETS
|
Current Assets |
2012 |
2011 |
|
|
|
|
|
Cash and Cash Equivalents
|
2,381,339.00 |
2,428,900.00 |
|
Trade Account & Other
Receivable |
322,886,186.01 |
- |
|
Inventories |
2,318,637,694.13 |
- |
|
Revenue Department Receivable |
150,936,165.49 |
- |
|
|
|
|
|
Total Current Assets
|
2,794,841,384.63 |
2,428,900.00 |
|
Total Assets |
2,794,841,384.63 |
2,428,900.00 |
LIABILITIES & SHAREHOLDERS' EQUITY
[BAHT]
|
Current Liabilities |
2012 |
2011 |
|
|
|
|
|
Trade Account & Other
Payable |
2,601,756,422.64 |
10,000.00 |
|
Advance Income from
Goods |
222,474,079.76 |
- |
|
|
|
|
|
Total Current Liabilities |
2,824,230,502.40 |
10,000.00 |
|
Total Liabilities |
2,824,230,502.40 |
10,000.00 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized &
issued share capital
1,000,000 &
100,000 shares in
2012 & 2011 respectively |
100,000,000.00 |
10,000,000.00 |
|
|
|
|
|
Capital Paid |
100,000,000.00 |
2,500,000.00 |
|
Retained
Earning - Unappropriated [Deficit] |
[129,389,117.77] |
[81,100.00] |
|
Total Shareholders' Equity |
[29,389,117.77] |
2,418,900.00 |
|
Total Liabilities & Shareholders' Equity |
2,794,841,384.63 |
2,428,900.00 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
Feb. 15,
2011 - Dec.
31, 2011 |
|
|
|
|
|
Sales |
2,957,753,459.07 |
- |
|
Other Income |
- |
- |
|
Total Revenues |
2,957,753,459.07 |
- |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
3,021,407,415.49 |
- |
|
Selling Expenses |
1,927,033.70 |
- |
|
Administrative Expenses |
367,027.65 |
81,100.00 |
|
Doubtful Accounts |
63,360,000.00 |
- |
|
Total Expenses |
3,087,061,476.84 |
81,100.00 |
|
|
|
|
|
Profit / Loss] before Financial
Cost & Income Tax |
[129,308,017.77] |
[81,100.00] |
|
Financial Cost |
- |
- |
|
|
|
|
|
Profit / [Loss] before Income Tax
|
[129,308,017.77] |
[81,100.00] |
|
Income Tax |
- |
- |
|
Net Profit / [Loss] |
[129,308,017.77] |
[81,100.00] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.99 |
242.89 |
|
QUICK RATIO |
TIMES |
0.12 |
242.89 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
- |
- |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.06 |
- |
|
INVENTORY CONVERSION PERIOD |
DAYS |
280.10 |
- |
|
INVENTORY TURNOVER |
TIMES |
1.30 |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
39.85 |
- |
|
RECEIVABLES TURNOVER |
TIMES |
9.16 |
- |
|
PAYABLES CONVERSION PERIOD |
DAYS |
314.30 |
- |
|
CASH CONVERSION CYCLE |
DAYS |
5.64 |
- |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
102.15 |
- |
|
SELLING & ADMINISTRATION |
% |
0.08 |
- |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
(2.15) |
- |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(4.37) |
- |
|
NET PROFIT MARGIN |
% |
(4.37) |
- |
|
RETURN ON EQUITY |
% |
- |
(3.35) |
|
RETURN ON ASSET |
% |
(4.63) |
(3.34) |
|
EARNING PER SHARE |
BAHT |
(129.31) |
(3.24) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
1.01 |
0.00 |
|
DEBT TO EQUITY RATIO |
TIMES |
(96.10) |
0.00 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
- |
- |
|
OPERATING PROFIT |
% |
159,342.69 |
- |
|
NET PROFIT |
% |
(159,342.69) |
- |
|
FIXED ASSETS |
% |
- |
- |
|
TOTAL ASSETS |
% |
114,966.14 |
- |
PROFITABILITY : RISKY
PROFITABILITY RATIO
|
Gross Profit Margin |
(2.15) |
Deteriorated |
Industrial Average |
10.75 |
|
Net Profit Margin |
(4.37) |
Deteriorated |
Industrial Average |
0.85 |
|
Return on Assets |
(4.63) |
Deteriorated |
Industrial Average |
1.58 |
|
Return on Equity |
- |
|
Industrial Average |
4.64 |
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 -2.15%. 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 -4.37%.
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 -4.63%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
0.99 |
Risky |
Industrial Average |
1.34 |
|
Quick Ratio |
0.12 |
|
|
|
|
Cash Conversion Cycle |
5.64 |
|
|
|
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 0.99 times in 2012, decreased from 242.89 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 0.12 times in 2012,
decreased from 242.89 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 6 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
1.01 |
Risky |
Industrial Average |
0.69 |
|
Debt to Equity Ratio |
(96.10) |
Risky |
Industrial Average |
2.23 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 1.01 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 : ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
- |
|
Industrial Average |
- |
|
Total Assets Turnover |
1.06 |
Acceptable |
Industrial Average |
1.85 |
|
Inventory Conversion Period |
280.10 |
|
|
|
|
Inventory Turnover |
1.30 |
Deteriorated |
Industrial Average |
4.15 |
|
Receivables Conversion Period |
39.85 |
|
|
|
|
Receivables Turnover |
9.16 |
Impressive |
Industrial Average |
4.14 |
|
Payables Conversion Period |
314.30 |
|
|
|
The company's Account Receivable Ratio is calculated as 9.16 in 2012.
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 2012 is 9.16. This would suggest the
company had good performance 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 is 280 days at the end of 2012. This
represents a negative trend. And Inventory turnover is 1.3 times in year 2012.
The company's Total Asset Turnover is calculated as 1.06 times in 2012.
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 Uptrend
Receivables Turnover Uptrend
|
Key Areas |
Score |
Weight |
Weighted
Score |
|
LIQUIDITY RATIO |
1.33 |
25.00 |
33.25 |
|
ACTIVITY RATIO |
1.78 |
20.00 |
35.60 |
|
PROFITABILITY
RATIO |
- |
25.00 |
- |
|
LEVERAGE RATIO |
- |
10.00 |
- |
|
ANNUAL GROWTH |
1.60 |
20.00 |
32.00 |
|
Total Weight
(excluding - - Score) |
|
100.00 |
|
|
|
|
|
100.85 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 62.07 |
|
|
1 |
Rs. 103.61 |
|
Euro |
1 |
Rs. 85.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
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.