MIRA
INFORM REPORT
|
Report Date : |
23.09.2014 |
IDENTIFICATION DETAILS
|
Name : |
THAI ASIA RUBBER CO., LTD. |
|
|
|
|
Registered Office : |
28/5
MOO 6, T. Huayyang, A. Klaeng, Rayong 21110 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
29.03.2004 |
|
|
|
|
Com. Reg. No.: |
0215547001030 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Engaged in
manufacturing,
distributing and exporting
ribbed smoked rubber
sheet [RSS No. 1 - 4
& ADS]. |
|
|
|
|
No. of Employees : |
80 |
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 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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 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 and address
THAI ASIA
RUBBER CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 28/5
MOO 6, T. HUAYYANG,
A. KLAENG,
RAYONG 21110,
THAILAND
TELEPHONE : [66] 38
633-327, 38 633-278-9
FAX : [66] 38
633-328
E-MAIL
ADDRESS : export01@thaiasiarubber.co.th
export02@thaiasiarubber.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2004
REGISTRATION
NO. : 0215547001030
TAX
ID NO. : -
CAPITAL REGISTERED : BHT. 250,000,000
CAPITAL PAID-UP : BHT.
250,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SOMPHOB TANGCHAROENSUTTHICHAI, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 80
LINES
OF BUSINESS : RIBBED SMOKED
RUBBER SHEET
MANUFACTURER, EXPORTER
AND 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 29,
2004 as a
private limited company
under the name style
THAI ASIA RUBBER CO.,
LTD., by Thai groups,
with the business
objective to manufacture
ribbed smoked rubber
sheet to both
domestic and international
markets. It currently
employs approximately 80
staff.
The subject’s registered
address is 28/5
Moo 6, T. Huayyang, A. Klaeng,
Rayong 21110, and
this is the
subject’s current operation
address.
Note
: Please be
informed that the
given address “25/5” is
incorrect, the correct
address is “28/5”.
THE BOARD
OF DIRECTOR
Mr. Somphob Tangcharoensutthichai
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Somphob Tangcharoensutthichai is
the Managing Director.
He is Thai
nationality with the
age of 47 years
old.
Mrs. Wanida Tangcharoensutthichai is
the Deputy Managing
Director.
She is Thai
nationality.
Mr. Sanphong Nopprasert is
the Factory Manager.
He is Thai
nationality.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing, distributing and
exporting ribbed smoked
rubber sheet [RSS
No. 1 - 4 & ADS].
PRODUCTION
3,000 tons per
month
PURCHASE
100% of raw
material is purchased
from local suppliers
and planters.
SALES
60% of the products is exported to Republic of China,
Vietnam, Korea, India
and Malaysia, the remaining 40%
is sold locally.
MAJOR
CUSTOMERS
Thai
Rubber Latex Corp.
Co., Ltd. :
Thailand
Glovetex
Co., Ltd. : Thailand
Inoue
Rubber [Thailand] Public
Company Limited :
Thailand
Thai
Fukoku Co., Ltd. : Thailand
International Rubber
Parts Co., Ltd. : Thailand
RELATED
AND AFFILIATED COMPANIES
Ti Rubber Co.,
Ltd.
Business Type :
Manufacturer and distributor
of rubber products
Tang Jiab Seng
Rubber L.P.
Business Type :
Manufacturer and distributor
of rubber products
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
credit term of
30 days.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs approximately
80 staff.
LOCATION
DETAILS
The
premise is owned
for administrative office,
factory and warehouse
at the heading
address. Premise is
located in provincial,
in the Eastern
region.
COMMENT
The subject was
formed in 2004 as a manufacturer,
exporter and distributor of ribbed
smoked rubber sheet.
The products are
mainly for export
markets. Oversupply of
rubber products in
world market has
resulted to price
decreased and slowed
down demand from
Thai rubber products.
The subject is
also faced with
this problem, which
its sales has
gradually declined since
2013.
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. 30,000,000
on April 23,
2004
Bht. 70,000,000
on December 27, 2006
Bht. 101,000,000
on February 3,
2012
Bht. 250,000,000
on November 14,
2013
The
latest registered capital
was increased to
Bht. 250,000,000 divided
into 2,500,000 shares
of Bht. 100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
November 11, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Somphob
Tangcharoensutthichai Nationality: Thai Address : 28/5
Moo 6, T. Huayyang, A. Klaeng, Rayong |
2,489,500 |
99.58 |
|
Mrs. Wanida
Tangcharoensutthichai Nationality: Thai Address : 28/5
Moo 6, T. Huayyang, A. Klaeng,
Rayong |
10,000 |
0.40 |
|
Mrs. Srisamorn Nopprasert Nationality: Thai Address :
204/121 Sukhumvit Rd., T. Tangkwean, A. Klaeng,
Rayong |
500 |
0.02 |
Total Shareholders : 3
Share Structure [as
at November 11,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
3 |
2,500,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
3 |
2,500,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Wandee Sinmahatsakul No.
7535
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
35,185,408.46 |
40,431,631.35 |
8,846,285.25 |
|
Trade Accounts Receivable
|
1,286,819,472.20 |
922,774,487.02 |
638,917,022.25 |
|
Inventories |
42,097,920.00 |
103,527,155.36 |
76,015,601.20 |
|
Other Current Assets |
1,126,937.18 |
816,314.84 |
625,677.14 |
|
|
|
|
|
|
Total Current Assets
|
1,365,229,737.84 |
1,067,549,588.57 |
724,404,585.84 |
|
Cash at Bank pledged as a Collateral |
90,249,373.00 |
65,084,866.30 |
45,065,198.00 |
|
Fixed Assets |
137,774,586.06 |
143,756,235.05 |
130,878,185.51 |
|
Total Assets |
1,593,253,696.90 |
1,276,390,689.92 |
900,347,969.35 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
1,096,597,897.55 |
946,232,540.52 |
629,276,399.91 |
|
Trade Accounts Payable
|
61,246,566.96 |
42,654,106.99 |
43,069,741.90 |
|
Current Portion of Lease
Contract Liabilities |
3,172,522.24 |
3,583,633.44 |
3,583,633.44 |
|
Current Portion of
Long-term Loans |
11,822,549.88 |
18,103,608.00 |
13,330,678.80 |
|
Other Current Liabilities |
1,866,331.69 |
2,384,568.29 |
6,458,125.48 |
|
|
|
|
|
|
Total Current Liabilities |
1,174,705,868.32 |
1,012,958,457.24 |
695,718,579.53 |
|
Lease Contract Liabilities, Net |
2,116,324.67 |
5,288,846.91 |
10,539,147.05 |
|
Long-term Loans, Net |
8,760,376.00 |
20,581,806.68 |
33,838,321.20 |
|
Total Liabilities |
1,185,582,568.99 |
1,038,829,110.83 |
740,096,047.78 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 2,500,000 shares in 2013; 1,010,000 shares
in 2012 & 700,000 shares
in 2011 |
250,000,000.00 |
101,000,000.00 |
70,000,000.00 |
|
|
|
|
|
|
Capital Paid |
250,000,000.00 |
101,000,000.00 |
70,000,000.00 |
|
Retained Earning - Unappropriated |
157,671,127.91 |
136,561,579.09 |
90,251,921.57 |
|
Total Shareholders' Equity |
407,671,127.91 |
237,561,579.09 |
160,251,921.57 |
|
Total Liabilities & Shareholders' Equity |
1,593,253,696.90 |
1,276,390,689.92 |
900,347,969.35 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
2,472,753,748.10 |
3,133,849,391.17 |
3,247,325,203.13 |
|
Other Income |
2,119,630.51 |
14,131,269.79 |
28,312,097.68 |
|
Total Revenues |
2,474,873,378.61 |
3,147,980,660.96 |
3,275,637,300.81 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
2,380,919,278.82 |
3,022,256,311.25 |
3,154,928,302.05 |
|
Selling Expenses |
28,345,094.96 |
27,806,533.80 |
26,352,859.54 |
|
Administrative Expenses |
13,970,247.78 |
16,255,766.37 |
12,961,840.61 |
|
Total Expenses |
2,423,234,621.56 |
3,066,318,611.42 |
3,194,243,002.20 |
|
|
|
|
|
|
Profit before Financial
Cost |
51,638,757.05 |
81,662,049.54 |
81,394,298.61 |
|
Financial Cost |
[30,529,208.23] |
[35,352,392.02] |
[39,243,267.70] |
|
|
|
|
|
|
Net Profit / [Loss] |
21,109,548.82 |
46,309,657.52 |
42,151,030.91 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.16 |
1.05 |
1.04 |
|
QUICK RATIO |
TIMES |
1.13 |
0.95 |
0.93 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
17.95 |
21.80 |
24.81 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.55 |
2.46 |
3.61 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
6.45 |
12.50 |
8.79 |
|
INVENTORY TURNOVER |
TIMES |
56.56 |
29.19 |
41.50 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
189.95 |
107.48 |
71.81 |
|
RECEIVABLES TURNOVER |
TIMES |
1.92 |
3.40 |
5.08 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
9.39 |
5.15 |
4.98 |
|
CASH CONVERSION CYCLE |
DAYS |
187.01 |
114.83 |
75.63 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
96.29 |
96.44 |
97.15 |
|
SELLING & ADMINISTRATION |
% |
1.71 |
1.41 |
1.21 |
|
INTEREST |
% |
1.23 |
1.13 |
1.21 |
|
GROSS PROFIT MARGIN |
% |
3.80 |
4.01 |
3.72 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.09 |
2.61 |
2.51 |
|
NET PROFIT MARGIN |
% |
0.85 |
1.48 |
1.30 |
|
RETURN ON EQUITY |
% |
5.18 |
19.49 |
26.30 |
|
RETURN ON ASSET |
% |
1.32 |
3.63 |
4.68 |
|
EARNING PER SHARE |
BAHT |
8.44 |
45.85 |
60.22 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.74 |
0.81 |
0.82 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.91 |
4.37 |
4.62 |
|
TIME INTEREST EARNED |
TIMES |
1.69 |
2.31 |
2.07 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(21.10) |
(3.49) |
|
|
OPERATING PROFIT |
% |
(36.77) |
0.33 |
|
|
NET PROFIT |
% |
(54.42) |
9.87 |
|
|
FIXED ASSETS |
% |
(4.16) |
9.84 |
|
|
TOTAL ASSETS |
% |
24.82 |
41.77 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -21.1%. Turnover has decreased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
3.80 |
Impressive |
Industrial
Average |
0.79 |
|
Net Profit Margin |
0.85 |
Satisfactory |
Industrial
Average |
1.00 |
|
Return on Assets |
1.32 |
Acceptable |
Industrial
Average |
2.43 |
|
Return on Equity |
5.18 |
Acceptable |
Industrial
Average |
8.13 |
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 3.8%. 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 0.85%.
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 1.32%.
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 5.18%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Downtrend
Return on Equity Downtrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.16 |
Satisfactory |
Industrial
Average |
1.18 |
|
Quick Ratio |
1.13 |
|
|
|
|
Cash Conversion Cycle |
187.01 |
|
|
|
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 1.16 times in 2013, increased from 1.05 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 1.13 times in 2013,
increased from 0.95 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 188 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.74 |
Acceptable |
Industrial
Average |
0.72 |
|
Debt to Equity Ratio |
2.91 |
Risky |
Industrial
Average |
2.61 |
|
Times Interest Earned |
1.69 |
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 1.7 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 0.74 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 |
17.95 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.55 |
Acceptable |
Industrial
Average |
2.44 |
|
Inventory Conversion Period |
6.45 |
|
|
|
|
Inventory Turnover |
56.56 |
Impressive |
Industrial
Average |
8.34 |
|
Receivables Conversion Period |
189.95 |
|
|
|
|
Receivables Turnover |
1.92 |
Deteriorated |
Industrial
Average |
6.61 |
|
Payables Conversion Period |
9.39 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.92 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 13 days at the
end of 2012 to 6 days at the end of 2013. This represents a positive trend. And
Inventory turnover has increased from 29.19 times in year 2012 to 56.56 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.55 times and 2.46
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 Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.78 |
|
|
1 |
Rs.99.29 |
|
Euro |
1 |
Rs.78.16 |
INFORMATION DETAILS
|
Analysis Done by
: |
SUM |
|
|
|
|
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.