MIRA INFORM REPORT
|
Report Date : |
07.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
UNION CHEMICAL
AND EQUIPMENT CO., LTD. |
|
|
|
|
Registered Office : |
84 Sirintorn
Road, Bangplad, Bangkok 10700 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
18.03.1999 |
|
|
|
|
Com. Reg. No.: |
0105542019616 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Engaged
in manufacturing and
distributing Ethanol [ethyl alcohol]
and Denatured Ethanol [food additive]. |
|
|
|
|
No. of Employees |
70 |
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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderately Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderately High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
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
UNION
CHEMICAL AND EQUIPMENT
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 84
SIRINTORN ROAD, BANGPLAD,
BANGKOK 10700,
THAILAND
TELEPHONE : [66] 2433-7762-4
FAX :
[66] 2881-2133,
2881-0016
E-MAIL
ADDRESS : sales@ethanol.co.th
sales@union-chemical.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1999
REGISTRATION
NO. : 0105542019616
TAX
ID NO. : 3021001179
CAPITAL REGISTERED : BHT. 180,000,000
CAPITAL PAID-UP : BHT.
180,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : POL. CAPT. ATTAKAWEE KHUNPINIT,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 70
LINES
OF BUSINESS : ETHANOL PRODUCTS
MANUFACTURER
& 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 March 18,
1999 as a
private limited company
under the registered
name UNION CHEMICAL
AND EQUIPMENT CO.,
LTD., by Thai group, with
the business objective
to manufacture and
distribute ethanol products
for industrial. It
currently employs approximately 70 staff.
The
subject achieved
international standard ISO 9001 : 2008, GMP
and HACCP by
URS, on May
4, 2011.
The
subject’s registered address
is 84 Sirintorn Road, Bangplad,
Bangkok 10700, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Pol. Capt. Attakawee Khunpinit |
|
Thai |
48 |
AUTHORIZED
PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Pol. Capt. Attakawee Khunpinit is
the Managing Director.
He is Thai
nationality with the
age of 48
years old.
BUSINESS
OPERATIONS
The subject
is engaged in
manufacturing and distributing Ethanol
[ethyl alcohol] and
Denatured Ethanol [food additive].
PURCHASE
100%
of raw material,
such as tapioca,
rice, corn and
chemical are purchased
from local suppliers.
SALES
100% of the
products is sold
locally to wholesalers,
manufacturers and end-users.
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 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.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject currently employs
approximately 70 staff.
LOCATION
DETAILS
The
premise is owned
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
Factory
and warehouse is
located at 121
Moo 2, T. Wangtakian, A. Nongmamong,
Chainat
17120.
COMMENT
Subject
is a manufacturer
and distributor of
ethanol, a major
raw material for
alternative fuel. Sales of
ethanol-blended gasoline have
grown rapidly in
the market over
the past few years.
The products are
in strong demand
as an alternative
for environment protection
as well.
Subject
has moderate business
and expanding steadily.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 500,000
divided into 5,000
shares of Bht.
100
each
with fully paid.
The
capital was increased
later as follows:
Bht. 50,000,000
on January 23,
2008
Bht. 60,000,000
on January 28,
2009
Bht. 160,000,000
on May 18,
2009
Bht. 180,000,000
on January 7,
2011
The
latest registered capital
was increased to
Bht. 180,000,000 divided
into 1,800,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
[as
at April 30,
2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Pol. Capt. Attakawee Khunpinit Nationality: Thai Address : 66/84
Moo 8, T. Bangkrasor, A. Muang,
Nonthaburi |
1,799,998 |
100.00 |
|
Ms. Apatcha Ratananan Nationality: Thai Address : 122/99
Moo 8, T. Bangkrasor, A. Muang,
Nonthaburi |
1 |
- |
|
Mr. Yuthana Manmoh Nationality: Thai Address : 84
Sirintorn Road, Bangplad, Bangkok |
1 |
- |
Total Shareholders : 3
Share Structure [as
at April 30,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
1,800,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
1,800,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Wibul Angkapipattanachai No.
3273
BALANCE
SHEET [BAHT]
The
latest financial figures
published as of
December 31, 2012,
2011 & 2010
were :
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
134,301.66 |
672,086.46 |
118,280.99 |
|
Trade Accounts & Other
Receivable |
9,634,806.99 |
17,690,239.23 |
6,431,795.83 |
|
Inventories |
21,069,940.00 |
22,123,475.15 |
19,132,595.13 |
|
Other Current Assets |
3,177,592.91 |
84,234.03 |
183,342.94 |
|
Total Current Assets |
34,016,641.56 |
40,570,034.87 |
25,866,014.89 |
|
|
|
|
|
|
Fixed Assets |
306,983,137.69 |
206,694,220.50 |
151,220,204.02 |
|
Paid Deposit |
24,564,747.48 |
52,211,970.95 |
52,211,970.95 |
|
Advance |
- |
1,843,000.00 |
1,843,000.00 |
|
Deferred Interest Expenses |
- |
- |
60,784.95 |
|
Others Non-current Assets |
937,253.73 |
582,684.78 |
507,368.96 |
|
Total Assets |
366,501,780.46 |
301,901,911.10 |
231,709,343.77 |
LIABILITIES &
SHAREHOLDERS’ EQUITY
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft & Short-term
Loan From Financial Institutions |
3,561,004.64 |
6,723,828.30 |
1,682,663.09 |
|
Trade Accounts & Other Payable |
57,899,123.33 |
43,249,224.70 |
7,979,284.16 |
|
Current Portion of Long-term Loans |
8,100,200.00 |
33,842,400.00 |
3,778,894.11 |
|
Current Portion of Hire-purchase Payable |
2,198,459.40 |
250,671.00 |
294,828.00 |
|
Others Current Liabilities |
7,294,728.10 |
227,826.59 |
20,492.58 |
|
Total Current Liabilities |
79,053,515.47 |
84,293,950.59 |
13,756,161.94 |
|
|
|
|
|
|
Long-term Loans, Net |
102,759,761.57 |
85,288,961.57 |
85,030,751.73 |
|
Hire-purchase Payable, Net |
4,446,840.39 |
486,651.00 |
73,707.00 |
|
Financial Capital for Shares
Received in Advance |
- |
- |
14,534,000.00 |
|
Total Liabilities |
186,260,117.43 |
170,069,563.16 |
113,394,620.67 |
|
Shareholders’ Equity |
|
|
|
|
Share capital, Baht
100 value authorized, issued
and fully paid
share capital
1,800,000 shares in 2012 & 2011;
1,6000,000 shares in 2010 |
180,000,000.00 |
180,000,000.00 |
160,000,000.00 |
|
Capital Paid |
180,000,000.00 |
180,000,000.00 |
160,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
241,663.03 |
[48,167,652.06] |
[41,685,276.90] |
|
Total Shareholders’ Equity |
180,241,663.03 |
131,832,347.94 |
118,314,723.10 |
|
Total Liabilities & Shareholders’ Equity |
366,501,780.46 |
301,901,911.10 |
231,709,343.77 |
PROFIT
& LOSS ACCOUNT
|
Revenues |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales |
160,372,236.04 |
48,481,866.29 |
40,347,762.55 |
|
Other Revenues |
52,731.32 |
92,284.96 |
1,431,215.02 |
|
Total Revenues |
160,424,967.36 |
48,574,151.25 |
41,778,977.57 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
87,461,237.58 |
37,294,761.49 |
35,224,435.71 |
|
Selling Expenses |
4,235,317.83 |
2,593,810.75 |
2,345,741.04 |
|
Administrative Expenses |
10,328,950.13 |
11,401,614.44 |
5,048,182.90 |
|
Total Expenses |
102,025,505.54 |
51,290,186.68 |
42,618,359.65 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost |
58,399,461.82 |
[2,716,035.43] |
[839,382.08] |
|
Financial Cost |
[9,990,146.73] |
[3,766,339.73] |
[3,441,178.54] |
|
Net Profit/[Loss] |
48,409,315.09 |
[6,482,375.16] |
[4,280,560.62] |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.43 |
0.48 |
1.88 |
|
QUICK RATIO |
TIMES |
0.12 |
0.22 |
0.48 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
0.52 |
0.23 |
0.27 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.44 |
0.16 |
0.17 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
87.93 |
216.52 |
198.25 |
|
INVENTORY TURNOVER |
TIMES |
4.15 |
1.69 |
1.84 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
21.93 |
133.18 |
58.18 |
|
RECEIVABLES TURNOVER |
TIMES |
16.65 |
2.74 |
6.27 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
241.63 |
423.28 |
82.68 |
|
CASH CONVERSION CYCLE |
DAYS |
(131.77) |
(73.57) |
173.76 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
54.54 |
76.93 |
87.30 |
|
SELLING & ADMINISTRATION |
% |
9.08 |
28.87 |
18.33 |
|
INTEREST |
% |
6.23 |
7.77 |
8.53 |
|
GROSS PROFIT MARGIN |
% |
45.50 |
23.27 |
16.25 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
36.41 |
(5.60) |
(2.08) |
|
NET PROFIT MARGIN |
% |
30.19 |
(13.37) |
(10.61) |
|
RETURN ON EQUITY |
% |
26.86 |
(4.92) |
(3.62) |
|
RETURN ON ASSET |
% |
13.21 |
(2.15) |
(1.85) |
|
EARNING PER SHARE |
BAHT |
26.89 |
(3.60) |
(2.68) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.51 |
0.56 |
0.49 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.03 |
1.29 |
0.96 |
|
TIME INTEREST EARNED |
TIMES |
5.85 |
(0.72) |
(0.24) |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
230.79 |
20.16 |
|
|
OPERATING PROFIT |
% |
(2,250.17) |
223.58 |
|
|
NET PROFIT |
% |
846.78 |
(51.44) |
|
|
FIXED ASSETS |
% |
48.52 |
36.68 |
|
|
TOTAL ASSETS |
% |
21.40 |
30.29 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 230.79%. Turnover has increased from THB
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
45.50 |
Impressive |
Industrial
Average |
34.05 |
|
Net Profit Margin |
30.19 |
Impressive |
Industrial
Average |
2.12 |
|
Return on Assets |
13.21 |
Impressive |
Industrial
Average |
4.25 |
|
Return on Equity |
26.86 |
Impressive |
Industrial
Average |
9.42 |
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 45.5%. When
compared with the industry average, the ratio of the company was higher,
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. The company’s figure is 30.19%, 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
13.21%, 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 26.86%, 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 Uptrend
Return on Equity Uptrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
0.43 |
Risky |
Industrial
Average |
1.40 |
|
Quick Ratio |
0.12 |
|
|
|
|
Cash Conversion Cycle |
(131.77) |
|
|
|
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 0.43 times in 2012, decreased from 0.48 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 0.12 times in 2012,
decreased from 0.22 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 -132 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.51 |
Impressive |
Industrial
Average |
0.61 |
|
Debt to Equity Ratio |
1.03 |
Satisfactory |
Industrial
Average |
1.56 |
|
Times Interest Earned |
5.85 |
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 5.85 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 0.51 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
0.52 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.44 |
Deteriorated |
Industrial
Average |
2.01 |
|
Inventory Conversion Period |
87.93 |
|
|
|
|
Inventory Turnover |
4.15 |
Deteriorated |
Industrial
Average |
8.42 |
|
Receivables Conversion Period |
21.93 |
|
|
|
|
Receivables Turnover |
16.65 |
Impressive |
Industrial
Average |
4.61 |
|
Payables Conversion Period |
241.63 |
|
|
|
The company's Account Receivable Ratio is calculated as 16.65 and
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 decreased from 217 days at the
end of 2011 to 88 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 1.69 times in year 2011 to 4.15 times
in year 2012.
The company's Total Asset Turnover is calculated as 0.44 times and 0.16
times in 2012 and 2011 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 Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.20 |
|
|
1 |
Rs.101.67 |
|
Euro |
1 |
Rs.83.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
PDT |
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.