MIRA
INFORM REPORT
|
Report Date : |
11.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
GERMAN SPECIAL
STEEL CO., LTD. |
|
|
|
|
Registered Office : |
Floraville
Pattanakarn Condo, 12/8 Soi
Pattanakarn 51, |
|
|
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Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2014 |
|
|
|
|
Date of Incorporation : |
27.05.2010 |
|
|
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Com. Reg. No.: |
0105553064341 |
|
|
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|
Legal Form : |
Private Limited Company |
|
|
|
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Line of Business : |
Importer & Distributor of Metal Products. |
|
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|
|
No of Employees : |
8 |
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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate 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
GERMAN SPECIAL STEEL CO., LTD.
SUMMARY
BUSINESS
ADDRESS : FLORAVILLE PATTANAKARN
CONDO,
12/8 SOI
PATTANAKARN 51, PATTANAKARN
ROAD,
SUANLUANG, BANGKOK
10250, THAILAND
TELEPHONE : [66] 2722-0735-6
FAX :
[66] 2722-0734
E-MAIL
ADDRESS : sales@german-specialsteel.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2010
REGISTRATION
NO. : 0105553064341
TAX
ID NO. : 3033961980
CAPITAL REGISTERED : BHT. 2,000,000
CAPITAL PAID-UP : BHT.
2,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
GERMAN :
49.00%
FISCAL YEAR CLOSING DATE : MARCH
31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. RALF DIETMAR
SCHAFFER, GERMAN
MANAGING DIRECTOR
NO.
OF STAFF : 8
LINES
OF BUSINESS : METAL
PRODUCTS
IMPORTER &
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 May 27,
2010 as a
private limited company
under the registered
name GERMAN SPECIAL STEEL
CO., LTD., by Thai
and German groups, with the business objective to distribute metal products
for various industries in local
market. It currently
employs 8 staff.
The
subject’s registered address
was initially at
24th Floor, Vanissa
Building, 29 Soi
Chidlom, Ploenchit Rd.,
Lumpini, Bangkok 10330.
On
December 19, 2011, the
subject’s registered address was
relocated to Floraville
Pattanakarn Condo, 12/8
Soi Pattanakarn 51,
Pattanakarn Rd., Suanluang,
Bangkok 10250, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTOR
Mr. Ralf Dietmar Schaffer
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Ralf Dietmar
Schaffer is the
Managing Director.
He is German
nationality with the
age of 44
years old.
BUSINESS OPERATIONS
The subject’s
core business is
engaged in supplying
stainless steel forging,
steel forging, special
steels, forged flat
and flat steel,
super duplex and
super flat steel,
super duplex and
super austenitic steel,
mold and die
steel, open die
forging, seamless rolled
ring and seamless
forged ring according
to customer’s requirement.
The suject
is also importer
and authorized distributor
various kinds of
steel products, such
as forged flat
and round steel,
disc and shaft,
seamless rolled ring
and seamless forged
ring from Germany. Its
products are used
in various industries
such as hydro
power turbine, steam
and gas turbine,
high pressure pump
and valve, offshore
oil and gases,
cement, sugar refinery,
mining equipment &
pelleting machine, and
various process equipment
manufacturers.
IMPORT
100% of the
products is imported
from Germany.
MAJOR SUPPLIERS
Stahlhandel
Groditz GmbH. : Germany
Special
Steel Forging GmbH. : Germany
SALES
100% of its
products is sold
locally by wholesale
to 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 to IRICO’S
DATABASE for the
past two years.
CREDIT
Sales are by
cash or on
the credits term
of 30-60 days.
Imports are by
L/C at sight
or T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject currently employs
8 staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial/residential area.
COMMENT
The subject imports and
distributes a variety of metal
products for industrial
users serving various
industries. The subject’s
business performance ended in
March 2014 was improved from the previous years. However,
its current business is
expanding slowly due
to overall economy
is relatively slow.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000 divided into 20,000 shares of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
July 31, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Sirikamol Schaffer Nationality: Thai Address : 100/273
Moo 2, Or-ngern,
Saimai, Bangkok |
10,200 |
51.00 |
|
Mr. Ralf Dietmar Schaffer Nationality: German Address : 100/273
Moo 2, Or-ngern,
Saimai, Bangkok |
4,900 |
24.50 |
|
Stahlhandel Groditz GmbH. Nationality: German Address : Germany |
4,900 |
24.50 |
Total Shareholders : 3
Share Structure [as
at July 31,
2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
1 |
10,200 |
51.00 |
|
Foreign-German |
2 |
9,800 |
49.00 |
|
Total |
3 |
20,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Seksit Kanmaravanich No. 8686
GERMAN SPECIAL STEEL
CO., LTD.
BALANCE SHEET [BAHT]
The
latest financial figures
published for March 31,
2014, 2013 & 2012 were :
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalent |
3,540,250.39 |
2,716,927.11 |
1,112,275.38 |
|
Trade Accounts Receivable |
456,187.14 |
- |
180,426.90 |
|
Other Current Assets |
89,202.59 |
217,165.91 |
41,617.86 |
|
|
|
|
|
|
Total Current Assets
|
4,085,640.12 |
2,934,093.02 |
1,334,320.14 |
|
|
|
|
|
|
Fixed Assets |
969,066.95 |
159,708.01 |
194,733.65 |
|
Intangible Assets |
31,801.71 |
- |
- |
|
Other Non-current Assets |
10,900.00 |
10,900.00 |
10,900.00 |
|
Total Assets |
5,097,408.78 |
3,104,701.03 |
1,539,953.79 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
2,040,169.44 |
379,238.86 |
7,222.50 |
|
Accrued Expenses |
- |
- |
29,920.00 |
|
Other Current Liabilities |
105,074.33 |
148,201.87 |
70,906.41 |
|
|
|
|
|
|
Total Current Liabilities |
2,145,243.77 |
527,440.73 |
108,048.91 |
|
Long-term Loans |
855,327.56 |
358,883.25 |
- |
|
Total Liabilities |
3,000,571.33 |
886,323.98 |
108,048.91 |
|
|
|
|
|
|
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 20,000 shares |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
|
|
|
|
|
Capital Paid |
2,000,000.00 |
2,000,000.00 |
2,000,000.00 |
|
Retained Earning |
96,837.45 |
218,377.05 |
[568,095.12] |
|
Total Shareholders' Equity |
2,096,837.45 |
2,218,377.05 |
1,431,904.88 |
|
Total Liabilities &
Shareholders' Equity |
5,097,408.78 |
3,104,701.03 |
1,539,953.79 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales Income |
29,235,486.84 |
14,276,022.72 |
6,914,359.62 |
|
Services Income |
2,686,648.28 |
6,440,315.97 |
- |
|
Other Income |
673,926.17 |
5,084.11 |
2,169,131.39 |
|
Total Revenues |
32,596,061.29 |
20,721,422.80 |
9,083,491.01 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
26,513,581.78 |
12,651,232.57 |
6,113,034.87 |
|
Selling Expenses |
431,434.38 |
36,924.19 |
155,889.06 |
|
Administrative Expenses |
5,648,407.84 |
7,107,967.79 |
3,511,096.60 |
|
Total Expenses |
32,593,424.00 |
19,796,124.55 |
9,780,020.53 |
|
|
|
|
|
|
Profit / [Loss] before
Financial Cost & Income Tax |
2,637.29 |
925,298.25 |
[696,529.52] |
|
Financial Cost |
[10,216.40] |
[37,223.42] |
- |
|
Profit / [Loss] before Income Tax |
[7,579.11] |
888,074.83 |
[696,529.52] |
|
Income Tax |
[113,960.49] |
[101,602.66] |
- |
|
|
|
|
|
|
Net Profit / [Loss] |
[121,539.60] |
786,472.17 |
[696,529.52] |
GERMAN SPECIAL
STEEL CO., LTD.
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.90 |
5.56 |
12.35 |
|
QUICK RATIO |
TIMES |
1.86 |
5.15 |
11.96 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
32.94 |
129.71 |
35.51 |
|
TOTAL ASSETS TURNOVER |
TIMES |
6.26 |
6.67 |
4.49 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
INVENTORY TURNOVER |
TIMES |
- |
- |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
5.22 |
- |
9.52 |
|
RECEIVABLES TURNOVER |
TIMES |
69.98 |
- |
38.32 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
28.09 |
10.94 |
0.43 |
|
CASH CONVERSION CYCLE |
DAYS |
(22.87) |
(10.94) |
9.09 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
83.06 |
61.07 |
88.41 |
|
SELLING & ADMINISTRATION |
% |
19.05 |
34.49 |
53.03 |
|
INTEREST |
% |
0.03 |
0.18 |
- |
|
GROSS PROFIT MARGIN |
% |
19.05 |
38.96 |
42.96 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.01 |
4.47 |
(10.07) |
|
NET PROFIT MARGIN |
% |
(0.38) |
3.80 |
(10.07) |
|
RETURN ON EQUITY |
% |
(5.80) |
35.45 |
(48.64) |
|
RETURN ON ASSET |
% |
(2.38) |
25.33 |
(45.23) |
|
EARNING PER SHARE |
BAHT |
(6.08) |
39.32 |
(34.83) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.59 |
0.29 |
0.07 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.43 |
0.40 |
0.08 |
|
TIME INTEREST EARNED |
TIMES |
0.26 |
24.86 |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
54.09 |
199.61 |
|
|
OPERATING PROFIT |
% |
(99.71) |
(232.84) |
|
|
NET PROFIT |
% |
(115.45) |
212.91 |
|
|
FIXED ASSETS |
% |
506.77 |
(17.99) |
|
|
TOTAL ASSETS |
% |
64.18 |
101.61 |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is 54.09%. Turnover has increased from THB
PROFITABILITY :
RISKY
PROFITABILITY
RATIO
|
Gross Profit Margin |
19.05 |
Satisfactory |
Industrial
Average |
21.59 |
|
Net Profit Margin |
(0.38) |
Deteriorated |
Industrial
Average |
2.05 |
|
Return on Assets |
(2.38) |
Deteriorated |
Industrial
Average |
3.70 |
|
Return on Equity |
(5.80) |
Deteriorated |
Industrial
Average |
10.03 |
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 19.05%. 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 -0.38%.
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 -2.38%.
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 -5.8%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
1.90 |
Satisfactory |
Industrial
Average |
1.99 |
|
Quick Ratio |
1.86 |
|
|
|
|
Cash Conversion Cycle |
(22.87) |
|
|
|
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 1.9 times in 2014, decreased from 5.56 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 1.86 times in 2014,
decreased from 5.15 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 -23 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
SATISFACTORY
LEVERAGE RATIO
|
Debt Ratio |
0.59 |
Impressive |
Industrial
Average |
0.96 |
|
Debt to Equity Ratio |
1.43 |
Satisfactory |
Industrial
Average |
2.81 |
|
Times Interest Earned |
0.26 |
Risky |
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 0.26 lower than 1, so the company is not generating
enough cash from EBIT to meet its
interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.59 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 |
32.94 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
6.26 |
Impressive |
Industrial
Average |
2.81 |
|
Inventory Conversion Period |
- |
|
|
|
|
Inventory Turnover |
- |
|
Industrial
Average |
6.50 |
|
Receivables Conversion Period |
5.22 |
|
|
|
|
Receivables Turnover |
69.98 |
Impressive |
Industrial
Average |
6.20 |
|
Payables Conversion Period |
28.09 |
|
|
|
The company's Account Receivable Ratio is calculated as 69.98 and
The company's Total Asset Turnover is calculated as 6.26 times and 6.67
times in 2014 and 2013 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.60.83 |
|
|
1 |
Rs.98.15 |
|
Euro |
1 |
Rs.78.65 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
TPT |
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.