MIRA
INFORM REPORT
|
Report Date : |
30.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
METALCO CO., LTD. |
|
|
|
|
Registered Office : |
3rd Floor, Furama Building, 533 Silom Road, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
1996 |
|
|
|
|
Com. Reg. No.: |
0105539075357 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Exporter of Natural Rubber Products |
|
|
|
|
No. of Employees : |
25 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Slow but correct |
|
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
METALCO CO., LTD.
SUMMARY
BUSINESS ADDRESS : 3rd
FLOOR, FURAMA BUILDING,
533 SILOM
ROAD, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2635-0335-9
FAX : [66] 2635-0040
E-MAIL ADDRESS : suharsh@inet.co.th
contactus@thainaturalrubber.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1996
REGISTRATION NO. : 0105539075357 [Former : 1527/2539]
TAX ID NO. : 311744406
CAPITAL REGISTERED : BHT.
5,000,000
CAPITAL PAID-UP : BHT.
5,000,000
SHAREHOLDER’S PROPORTION : THAI
: 51%
INDIAN : 49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
SUHARCH MITTAL, INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 25
LINES OF BUSINESS : NATURAL RUBBER
PRODUCTS
EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGED WITH FAIR
PERFORMANCE
HISTORY
The subject was
established on July
8, 1996 as
a private limited
company under the name style METALCO CO., LTD., by Thai - Indian groups, in order to export
various kinds of
rubber products to
worldwide markets. It
currently employs 25
staff.
The subject’s registered
address is 3rd Floor,
Furama Building, 533 Silom Rd., Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Suharch Mittal |
|
Indian |
45 |
|
Mr. Yogee Sethee |
|
Thai |
40 |
|
Ms. Sonali Pramod
Anand |
|
Indian |
42 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf of
the subject with
company’s affixed.
MANAGEMENT
Mr. Suharch Mittal
is the Managing
Director.
He is Indian
nationality with the
age of 45
years old.
BUSINESS OPERATIONS
The subject operates as
an exporter of
natural rubber products
such as ribbed
smoked rubber sheet,
rubber concentrate, blocked
rubber, crepe rubber,
as well as
rubber gloves
[surgical/examination/household],
rubber bands and etc.
PURCHASE
100% of the
products is purchased
from local manufacturers
and traders.
EXPORT [COUNTRIES]
90% of the
products is exported
to European countries
such as Germany,
Spain, Italy, Turkey,
United Kingdom, Switzerland
and France, and the
remaining 10% is exported to
South Africa, Malaysia
and India.
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.
SUBSIDIARY AND AFFILIATED COMPANY
Oriental Rubber Products
Co., Ltd.
Business Type :
Exporter of natural
rubber products.
CREDIT
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Exports are against
L/C at sight or
on negotiated term
& T/T.
BUSINESS TRANSACTION
The products are
sold to customers
both cash and
credit, with the maximum credit given at
30-90 days. The
subject is not
found to have
problem on its
account receivable.
BANKING
The Siam Commercial
Bank Public Co., Ltd.
[Head Office : 9
Ratchadapisek Rd., Ladyao,
Jatujak, Bangkok 10900]
[Surawongse Branch :
291 Surawong Rd.,
Bangrak, Bangkok 10500]
EMPLOYMENT
The subject currently
employs 25 staff.
LOCATION DETAILS
The premise is
rented for administrative office at
the heading address.
Premise is located
in a prime
commercial area.
Branch office :
301/11 Moo 11, T.
Padangbazaar, A. Sadao, Songkhla
province.
COMMENT
The subject operates
as the rubber
trading firm. Its sales
are depending on customers’
demand, as well
as the margin is likely to rely on world price
of rubber products. Unfortunately, in
2013 demand of
rubber in world market was outstanding
decreased, therefore sales reduction were recorded
at high level.
FINANCIAL INFORMATION
The capital was registered at
Bht. 2,000,000 divided
into 20,000 shares
of Bht. 100 each.
The capital was
increased and decreased
later as follows:
Bht. 5,000,000
on August 16,
1998
Bht. 6,500,000
on August 8,
2000
Bht. 20,000,000 on January 2,
2003
Bht. 6,500,000
on October 27,
2004 [Decreased]
Bht. 5,000,000
on December 22,
2005 [Decreased]
The latest registered
capital was decreased
to Bht. 5,000,000
divided into 50,000
shares of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED WERE
[as at
April 30, 2014]
|
NAME |
HOLDING |
% |
|
Mr. Suharch Mittal Nationality: Indian Address : New Delhi,
India |
19,500 |
39.00 |
|
Mr. Kookiat Sethee Nationality: Thai Address : 437
Somdejchaopraya Rd.,
Thadindaeng,
Klongsan, Bangkok |
8,000 |
16.00 |
|
Mr. Yogee Sethee Nationality: Thai Address : 437
Somdejchaopraya Rd.,
Thadindaeng,
Klongsan, Bangkok |
8,000 |
16.00 |
|
Mrs. Anchalee Malhotra Nationality: Thai Address : 39/7 Sukhumvit 11 Rd.,
Klongtoeynua,
Wattana, Bangkok |
8,000 |
16.00 |
|
Mrs. Sonali Mittal Nationality: Indian Address : Mumbai,
India |
3,000 |
6.00 |
|
Mr. Surendra Kumar
Mittal Nationality: Indian Address : New
Delhi, India |
2,000 |
4.00 |
|
Mrs. Reena Singhpathom Nationality: Thai Address : 129 Prasartvithee Rd.,
Maesod, Tak |
1,500 |
3.00 |
Total Shareholders : 7
Share Structure [as
at April 30,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
25,500 |
51.00 |
|
Foreign - Indian |
3 |
24,500 |
49.00 |
|
Total |
7 |
50,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Ms. Nualchan Sinsuksathaporn No. 4359
BALANCE SHEET [BAHT]
The latest financial
figures published for
December 31, 2013,
2012 & 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
849,066.31 |
459,400.34 |
771,502.81 |
|
Short-term Investment |
10,000,000.00 |
10,000,000.00 |
10,000,000.00 |
|
Trade Accounts & Other Receivable |
115,899,019.18 |
45,737,892.06 |
48,284,224.86 |
|
Other Current Assets
|
119,555.47 |
159,252.61 |
107,269.47 |
|
|
|
|
|
|
Total Current Assets
|
126,867,640.96 |
56,356,545.01 |
59,162,997.14 |
|
Building & Equipment Improvement
|
14,148,551.00 |
15,121,778.09 |
16,108,621.82 |
|
Intangible Asset |
587,584.00 |
592,235.01 |
598,044.81 |
|
Other Non-current Assets - Guarantee |
59,252.39 |
59,252.39 |
59,252.39 |
|
Total Assets |
141,663,028.35 |
72,129,810.50 |
75,928,916.16 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
119,893,219.97 |
51,255,834.28 |
56,463,194.35 |
|
Accrued Income Tax |
99,894.34 |
215,012.85 |
61,510.66 |
|
|
|
|
|
|
Total Current Liabilities |
119,993,114.31 |
51,470,847.13 |
56,524,705.01 |
|
Total Liabilities |
119,993,114.31 |
51,470,847.13 |
56,524,705.01 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 50,000 shares |
5,000,000.00 |
5,000,000.00 |
5,000,000.00 |
|
|
|
|
|
|
Capital Paid |
5,000,000.00 |
5,000,000.00 |
5,000,000.00 |
|
Retained Earning - Unappropriated |
16,669,914.04 |
15,658,963.37 |
14,404,211.15 |
|
Total Shareholders' Equity |
21,669,914.04 |
20,658,963.37 |
19,404,211.15 |
|
Total Liabilities &
Shareholders' Equity |
141,663,028.35 |
72,129,810.50 |
75,928,916.16 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
392,573,168.88 |
567,554,255.05 |
530,297,150.87 |
|
Other Income |
6,896,833.58 |
5,582,646.12 |
6,173,037.57 |
|
Total Revenues |
399,470,002.46 |
573,136,901.17 |
536,470,188.44 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
373,063,607.04 |
540,010,196.12 |
512,382,002.37 |
|
Selling Expenses |
14,742,721.69 |
22,423,724.72 |
13,386,919.93 |
|
Administrative Expenses |
10,046,836.17 |
8,671,660.43 |
8,711,013.80 |
|
Total Expenses |
397,853,164.90 |
571,105,581.27 |
534,479,936.10 |
|
|
|
|
|
|
Profit / [Loss] before Financial
Cost & Income Tax |
1,616,837.56 |
2,031,319.90 |
1,990,252.34 |
|
Financial Cost |
[160,739.73] |
[194,328.10] |
[68,015.87] |
|
Profit / [Loss] before Income Tax |
1,456,097.83 |
1,836,991.80 |
1,922,236.47 |
|
Income Tax |
[445,147.16] |
[582,239.58] |
[467,991.61] |
|
|
|
|
|
|
Net Profit / [Loss] |
1,010,950.67 |
1,254,752.22 |
1,454,244.86 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.06 |
1.09 |
1.05 |
|
QUICK RATIO |
TIMES |
1.06 |
1.09 |
1.04 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
27.75 |
37.53 |
32.92 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.77 |
7.87 |
6.98 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
INVENTORY TURNOVER |
TIMES |
- |
- |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
107.76 |
29.41 |
33.23 |
|
RECEIVABLES TURNOVER |
TIMES |
3.39 |
12.41 |
10.98 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
117.30 |
34.64 |
40.22 |
|
CASH CONVERSION CYCLE |
DAYS |
(9.54) |
(5.23) |
(6.99) |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
95.03 |
95.15 |
96.62 |
|
SELLING & ADMINISTRATION |
% |
6.31 |
5.48 |
4.17 |
|
INTEREST |
% |
0.04 |
0.03 |
0.01 |
|
GROSS PROFIT MARGIN |
% |
6.73 |
5.84 |
4.54 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.41 |
0.36 |
0.38 |
|
NET PROFIT MARGIN |
% |
0.26 |
0.22 |
0.27 |
|
RETURN ON EQUITY |
% |
4.67 |
6.07 |
7.49 |
|
RETURN ON ASSET |
% |
0.71 |
1.74 |
1.92 |
|
EARNING PER SHARE |
BAHT |
20.22 |
25.10 |
29.08 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.85 |
0.71 |
0.74 |
|
DEBT TO EQUITY RATIO |
TIMES |
5.54 |
2.49 |
2.91 |
|
TIME INTEREST EARNED |
TIMES |
10.06 |
10.45 |
29.26 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(30.83) |
7.03 |
|
|
OPERATING PROFIT |
% |
(20.40) |
2.06 |
|
|
NET PROFIT |
% |
(19.43) |
(13.72) |
|
|
FIXED ASSETS |
% |
(6.44) |
(6.13) |
|
|
TOTAL ASSETS |
% |
96.40 |
(5.00) |
|
ANNUAL GROWTH : RISKY
An annual sales growth is -30.83%. Turnover has decreased from THB
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
6.73 |
Impressive |
Industrial Average |
2.51 |
|
Net Profit Margin |
0.26 |
Deteriorated |
Industrial Average |
1.36 |
|
Return on Assets |
0.71 |
Deteriorated |
Industrial Average |
6.71 |
|
Return on Equity |
4.67 |
Deteriorated |
Industrial Average |
17.50 |
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 6.73%. 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
0.26%. 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 4.67%.
Trend of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.06 |
Acceptable |
Industrial Average |
1.63 |
|
Quick Ratio |
1.06 |
|
|
|
|
Cash Conversion Cycle |
(9.54) |
|
|
|
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 1.06 times in 2013, decreased from 1.09 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 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 1.06 times in 2013,
decreased from 1.09 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 -10 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.85 |
Acceptable |
Industrial Average |
0.58 |
|
Debt to Equity Ratio |
5.54 |
Risky |
Industrial Average |
1.38 |
|
Times Interest Earned |
10.06 |
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 10.06 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 0.85 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 |
27.75 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
2.77 |
Acceptable |
Industrial Average |
4.95 |
|
Inventory Conversion Period |
- |
|
|
|
|
Inventory Turnover |
- |
|
Industrial Average |
14.31 |
|
Receivables Conversion Period |
107.76 |
|
|
|
|
Receivables Turnover |
3.39 |
Acceptable |
Industrial Average |
5.17 |
|
Payables Conversion Period |
117.30 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.39 and
The company's Total Asset Turnover is calculated as 2.77 times and 7.87 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 Uptrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.58.84 |
|
|
1 |
Rs.98.41 |
|
Euro |
1 |
Rs.80.03 |
INFORMATION DETAILS
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
NNA |
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.