MIRA
INFORM REPORT
|
Report Date : |
31.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
UNION J. PLUS [THAILAND] CO., LTD. |
|
|
|
|
Registered Office : |
85 Moo 6, Sinsakorn Road, T. Khokkham, A. Muang, Samutsakorn 74000 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
2001 |
|
|
|
|
Com. Reg. No.: |
0105544069068 |
|
|
|
|
Legal Form : |
Private Limited
Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor
and Exporter of Recycled Plastic
Materials |
|
|
|
|
No. of Employees : |
150 |
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
UNION J. PLUS [THAILAND] CO., LTD.
SUMMARY
BUSINESS ADDRESS : 85
MOO 6, SINSAKORN
ROAD, T. KHOKKHAM,
A.
MUANG, SAMUTSAKORN 74000,
THAILAND
TELEPHONE : [66] 34
813-115-8, 081 843-7711
FAX : [66]
34 813-114
E-MAIL ADDRESS : unionjplus@yahoo.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2001
REGISTRATION NO.
: 0105544069068
TAX ID NO. : 3030316325
CAPITAL REGISTERED : BHT. 5,000,000
CAPITAL PAID-UP
: BHT.
5,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING
DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MS.
KULANART SIRIPHATI, THAI
MANAGING DIRECTOR
NO. OF
STAFF : 150
LINES OF
BUSINESS : RECYCLED PLASTIC
MATERIALS
MANUFACTURER, 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 23, 2001
as a private
limited company under
the registered name
UNION J. PLUS
[THAILAND] CO., LTD., by
Thai group, with the
business objective to
manufacture and supply
various recycled plastic
materials to packaging, container and
pipe industries both
in domestic and
international. It currently
employs approximately 150
staff.
The subject’s
registered address is 85 Moo 6,
Sinsakorn Road, T. Khokkham,
A. Muang, Samutsakorn
74000, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms.
Kulanart Siriphati |
|
Thai |
43 |
|
Ms.
Chutikarn Chaisiripaiboon |
|
Thai |
43 |
AUTHORIZED PERSON
One of
the above directors
can sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Ms. Kulanart Siriphati
is the Managing
Director.
She is
Thai nationality with
the age of
43 years old.
Ms. Chutikarn Chaisiripaiboon is
the Marketing Manager.
She is
Thai nationality with
the age of
43 years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing, distributing and
exporting various kinds
of recycled plastic
materials for plastic
bags, plastic pipes,
plastic sheets, plastic
drums, household goods,
utensil, and water
tank production industries.
The products are
as follows:
HDPE blown
film, blow molding,
extrusion and injection
grade
LDPE blown
film grade
PP, HIPS
and ABS injection
grade
CaCo3 master
batch PE and PP
BRAND NAME
“UNION J
PLUS”
PURCHASE
Raw materials
are purchased from
suppliers both domestic
and overseas, mainly
in Republic of
China and India.
SALES
60% of
the products is
sold by wholesale
to local customers,
and the remaining
40% is exported
to Malaysia, Indonesia,
Singapore, Vietnam, Japan, Republic
of China, Korea, Philippines, African
and Myanmar.
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.
Imports are
by L/C at
sight or T/T.
Exports are
against T/T.
BANKING
The banker’s
name was not
disclosed.
EMPLOYMENT
The subject
currently employs approximately
150 office staff
and factory workers.
LOCATION DETAILS
The premise
is owned for administrative
office and factory
on approximately 3,000
square meters plot
of land at
the heading address.
Premise is located
in industrial area.
COMMENT
The subject processes
of waste plastic and reprocessing
the material into useful
products. The
subject has given
the importance of the
recycled market by
reusing the recycled products. This idea
is to reduce
wastes, pollutions, production cost for
the plastic products
manufacturers, and has
given more choices
for consumers to
choose the products.
The subject
has strong business
growth and continued
expanding.
FINANCIAL INFORMATION
The capital
was registered at
Bht. 1,000,000 divided
into 10,000 shares of
Bht. 100 each with
fully paid.
On October
18, 2004, the
registered capital was
increased to Bht. 5,000,000 divided
into 50,000 shares
of Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED WERE
[as at April
20, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Ms. Kulanart Siriphati Nationality: Thai Address :
264-266 Soi Charoennakorn 14, Klongtonsai, Klongsan,
Bangkok |
39,500 |
79.00 |
|
Ms.
Chutikarn Chaisiripaiboon Nationality: Thai Address :
108 Tanao Road,
Sanchaoporsua, Phranakorn, Bangkok |
10,000 |
20.00 |
|
Mr.
Setthrawut Siriphati Nationality: Thai Address :
264-266 Soi Charoennakorn 14, Klongtonsai, Klongsan,
Bangkok |
500 |
1.00 |
Total Shareholders
: 3
Share Structure
[as at April
20, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
50,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
50,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.
Ms. Krisana Siripacharawong No.
6584
BALANCE SHEET [BAHT]
The latest
financial figures published
for December 31,
2012, 2011 &
2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash Equivalents |
8,671,430.85 |
12,054,711.39 |
1,279,566.20 |
|
Short-term Investment |
2,017,868.83 |
2,000,000.00 |
- |
|
Trade Account & Other Receivable |
90,934,223.26 |
78,758,833.21 |
13,881,996.81 |
|
Short-term Loans
to Person or Related Company |
- |
- |
500,000.00 |
|
Inventories |
38,178,565.84 |
27,084,759.19 |
28,913,033.55 |
|
Other Current
Assets |
22,899,849.27 |
20,473,706.59 |
15,293,598.73 |
|
|
|
|
|
|
Total Current
Assets |
162,701,938.05 |
140,372,010.38 |
59,868,195.29 |
|
Fixed
Assets |
28,453,861.15 |
21,545,256.04 |
23,568,395.15 |
|
Other Non-current
Assets |
2,402,025.52 |
2,901,600.00 |
401,600.00 |
|
Total Assets |
193,557,824.72 |
164,818,866.42 |
83,838,190.44 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft
& Short-term Loan from Financial Institution |
87,077,571.48 |
116,319,917.86 |
56,892,291.81 |
|
Trade Account
Payable |
41,444,558.04 |
23,897,734.01 |
8,627,434.55 |
|
Current Portion
of Long-term Loan |
1,020,144.31 |
608,635.70 |
581,163.39 |
|
Short-term Loan
from Person or Related
Company |
47,000,000.00 |
9,000,000.00 |
- |
|
Other Current
Liabilities |
1,565,704.88 |
2,523,475.39 |
2,216,871.62 |
|
|
|
|
|
|
Total Current
Liabilities |
178,107,978.71 |
152,349,762.96 |
68,317,761.37 |
|
Long-term Loan
from Person or
Related Company |
674,039.07 |
323,867.11 |
4,392,914.07 |
|
Total Liabilities |
178,782,017.78 |
152,673,630.07 |
72,710,675.44 |
|
|
|
|
|
|
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
[Deficit] |
9,775,806.94 |
7,145,236.36 |
6,127,515.00 |
|
Total Shareholders' Equity |
14,775,806.94 |
12,145,236.36 |
11,127,515.00 |
|
Total
Liabilities & Shareholders' Equity |
193,557,824.72 |
164,818,866.42 |
83,838,190.44 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales -
Domestic |
341,160,279.04 |
261,877,268.14 |
89,925,442.57 |
|
Sales -
Overseas |
116,812,656.01 |
124,209,158.89 |
93,115,348.25 |
|
Logistics Income |
3,826,254.49 |
8,425,158.09 |
8,910,482.49 |
|
Gain on
Exchange Rate |
845,350.95 |
1,319,692.96 |
- |
|
Other Income |
597,268.40 |
717,327.24 |
3,668,899.04 |
|
Total Revenues |
463,241,808.89 |
396,548,605.32 |
195,620,172.35 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of
Goods Sold |
428,681,985.77 |
368,751,329.49 |
167,762,365.92 |
|
Selling Expenses |
10,730,610.56 |
11,092,079.13 |
11,292,865.70 |
|
Administrative Expenses |
13,491,521.44 |
13,000,643.86 |
10,995,988.54 |
|
Other Expenses |
- |
- |
1,198,813.34 |
|
Total Expenses |
452,904,117.77 |
392,844,052.48 |
191,250,033.50 |
|
|
|
|
|
|
Profit / Loss]
before Financial Cost & Income Tax |
10,337,691.12 |
3,704,552.84 |
3,370,138.85 |
|
Financial Cost |
[6,685,224.72] |
[2,201,899.58] |
[2,121,814.79] |
|
|
|
|
|
|
Profit /
[Loss] before Income Tax
|
3,652,466.40 |
1,502,653.26 |
1,248,324.06 |
|
Income Tax |
[1,021,895.82] |
[484,931.91] |
[265,717.14] |
|
Net Profit / [Loss] |
2,630,570.58 |
1,017,721.36 |
982,606.92 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.91 |
0.92 |
0.88 |
|
QUICK RATIO |
TIMES |
0.57 |
0.61 |
0.23 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS
TURNOVER |
TIMES |
16.23 |
18.31 |
8.14 |
|
TOTAL ASSETS
TURNOVER |
TIMES |
2.39 |
2.39 |
2.29 |
|
INVENTORY
CONVERSION PERIOD |
DAYS |
32.51 |
26.81 |
62.91 |
|
INVENTORY
TURNOVER |
TIMES |
11.23 |
13.61 |
5.80 |
|
RECEIVABLES
CONVERSION PERIOD |
DAYS |
71.87 |
72.87 |
26.40 |
|
RECEIVABLES
TURNOVER |
TIMES |
5.08 |
5.01 |
13.83 |
|
PAYABLES
CONVERSION PERIOD |
DAYS |
35.29 |
23.65 |
18.77 |
|
CASH CONVERSION
CYCLE |
DAYS |
69.09 |
76.02 |
70.53 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS
SOLD |
% |
92.83 |
93.47 |
87.40 |
|
SELLING &
ADMINISTRATION |
% |
5.25 |
6.11 |
11.61 |
|
INTEREST |
% |
1.45 |
0.56 |
1.11 |
|
GROSS PROFIT
MARGIN |
% |
7.48 |
7.05 |
14.51 |
|
NET PROFIT MARGIN
BEFORE EX. ITEM |
% |
2.24 |
0.94 |
2.28 |
|
NET PROFIT
MARGIN |
% |
0.57 |
0.26 |
0.51 |
|
RETURN ON
EQUITY |
% |
17.80 |
8.38 |
8.83 |
|
RETURN ON ASSET |
% |
1.36 |
0.62 |
1.17 |
|
EARNING PER
SHARE |
BAHT |
52.61 |
20.35 |
19.65 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.92 |
0.93 |
0.87 |
|
DEBT TO EQUITY
RATIO |
TIMES |
12.10 |
12.57 |
6.53 |
|
TIME INTEREST
EARNED |
TIMES |
1.55 |
1.68 |
2.06 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
17.06 |
105.53 |
|
|
OPERATING
PROFIT |
% |
179.05 |
(15.23) |
|
|
NET PROFIT |
% |
158.48 |
3.57 |
|
|
FIXED ASSETS |
% |
32.07 |
(8.58) |
|
|
TOTAL ASSETS |
% |
17.44 |
96.59 |
|
ANNUAL GROWTH : EXCELLENT
An annual sales
growth is 17.06%. Turnover has increased from THB
PROFITABILITY : RISKY
PROFITABILITY RATIO
|
Gross Profit
Margin |
7.48 |
Deteriorated |
Industrial
Average |
43.22 |
|
Net Profit
Margin |
0.57 |
Deteriorated |
Industrial
Average |
7.61 |
|
Return on
Assets |
1.36 |
Deteriorated |
Industrial
Average |
10.62 |
|
Return on
Equity |
17.80 |
Satisfactory |
Industrial
Average |
19.80 |
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 7.48%. 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 0.57%. 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 1.36%.
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 17.8%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : RISKY
LIQUIDITY RATIO
|
Current Ratio |
0.91 |
Risky |
Industrial
Average |
1.11 |
|
Quick Ratio |
0.57 |
|
|
|
|
Cash Conversion
Cycle |
69.09 |
|
|
|
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 0.91 times in 2012,
decreased from 0.92 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 0.57 times in 2012, decreased from 0.61
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 70 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.92 |
Acceptable |
Industrial
Average |
0.46 |
|
Debt to Equity
Ratio |
12.10 |
Risky |
Industrial
Average |
0.87 |
|
Times Interest
Earned |
1.55 |
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
1.55 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 0.92 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 : IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets
Turnover |
16.23 |
Impressive |
Industrial
Average |
- |
|
Total Assets
Turnover |
2.39 |
Impressive |
Industrial
Average |
1.40 |
|
Inventory
Conversion Period |
32.51 |
|
|
|
|
Inventory
Turnover |
11.23 |
Impressive |
Industrial
Average |
7.62 |
|
Receivables
Conversion Period |
71.87 |
|
|
|
|
Receivables
Turnover |
5.08 |
Satisfactory |
Industrial
Average |
6.62 |
|
Payables
Conversion Period |
35.29 |
|
|
|
The company's
Account Receivable Ratio is calculated as 5.08 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
increased from 27 days at the end of 2011 to 33 days at the end of 2012. This
represents a negative trend. And Inventory turnover has decreased from 13.61
times in year 2011 to 11.23 times in year 2012.
The company's Total
Asset Turnover is calculated as 2.39 times and 2.39 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.59.03 |
|
|
1 |
Rs.98.91 |
|
Euro |
1 |
Rs.80.34 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.