MIRA INFORM REPORT

 

 

Report No. :

338975

Report Date :

27.08.2015

 

IDENTIFICATION DETAILS

 

Name :

POLENE PLASTIC COMPANY LIMITED

 

 

Registered Office :

26/56  Chantadmai  Road,  Thungmahamek Sathorn,  Bangkok  10120

 

 

Country :

Thailand

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

2002

 

 

Com. Reg. No.:

0105545048820

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Subject is engaged  in  exporting  of  PVC  resin,  mainly  Low Density Polyethylene [LDPE]  and  Ethylene-Vinyl  Acetate  Copolymer [EVA],  as  well  as  distributing  and  exporting  of  cements  and  mortars.

 

 

No. of Employee :

17

 

 

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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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

 

POLENE PLASTIC COMPANY LIMITED

 

 

SUMMARY

 

BUSINESS  ADDRESS                          :           26/56  CHANTADMAI  ROAD,  THUNGMAHAMEK,

                                                                        SATHORN,  BANGKOK  10120,  THAILAND

TELEPHONE                                         :           [66]   2213-1039-49  EXT. 12069,  2285-5090,  2678-5050

FAX                                                      :           [66]   2213-1035,  2678-7080

E-MAIL  ADDRESS                                :           mktagent@tpipolene.co.th

                                                                        napathong@tpipolene.co.th

REGISTRATION  ADDRESS                   :           SAME  AS  BUSINESS  ADDRESS

 

ESTABLISHED                                     :           2002

REGISTRATION  NO.                            :           0105545048820

TAX  ID  NO.                                          :           3030567512

CAPITAL REGISTERED                         :           BHT.   10,000,000

CAPITAL PAID-UP                                 :           BHT.   10,000,000

SHAREHOLDER’S  PROPORTION         :           THAI     :     100%

FISCAL YEAR CLOSING DATE              :           DECEMBER   31            

LEGAL  STATUS                                   :           PRIVATE  LIMITED  COMPANY

EXECUTIVE                                          :           MR. PRACHAI  LIEWPAIRAT,  THAI

                                                                        PRESIDENT  AND  CHIEF  EXECUTIVE  OFFICER

 

NO.  OF  STAFF                                    :           17

LINES  OF  BUSINESS                          :           PETROCHEMICALS 

                                                                        EXPORTER  AND  LOGISTIC  SERVICE

                                                                         

 

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  8,  2002  as  a  private  limited  company  under  the  name  style  POLENE  PLASTIC COMPANY LIMITED,  by  Thai  groups,  with  the business  objective  to export  petrochemical  products,  as  well  as  provide  domestic  and  international  freight  forwarding  and  shipping  services  to  TPI  group  of  companies.  It  currently  employs  17  staff.

 

The  subject  is  a  wholly  owned  subsidiary  of  TPI  Polene Power Company Limited,  which  is  a  member  of  TPI  Polene  Public  Company  Limited.

 

The  subject’s  registered  address  is  26/56  Chantadmai  Rd.,  Thungmahamek,  Sathorn,  Bangkok  10120,  and  this  is  the  subject’s  current  operation  address.  

 

 

THE BOARD OF DIRECTOR

 

     Name

 

Nationality

Age

 

 

 

 

Mr. Prachai  Liewpairat

 

Thai

71

Mr. Prateep  Liewpairat

 

Thai

69

Mr. Pramual  Liewpairat

 

Thai

66

Mr. Prayad  Liewpairat

 

Thai

64

Mrs. Orapin  Liewpairat

 

Thai

68

 

 

AUTHORIZED PERSON

 

Any  two  of  the  above  directors  can  jointly  sign  on  behalf  of  the  subject  with 

company’s  affixed.

 

 

MANAGEMENT

 

Mr.  Prachai  Liewpairat  is  the  President  &  Chief  Executive  Officer.

He  is  Thai  nationality  with  the  age  of  71  years  old.  

 

 

BUSINESS OPERATIONS

 

The  subject  is engaged  in  exporting  of  PVC  resin,  mainly  Low Density Polyethylene [LDPE]  and  Ethylene-Vinyl  Acetate  Copolymer [EVA],  as  well  as  distributing  and  exporting  of  cements  and  mortars  under  its  brand “POLENE”.

 

The  subject  also  provides  domestic  and  international  logistic  service  for  cements  and  PVC  resin  for  the  TPI  group  of  companies.

 

 

PURCHASE

 

100%  of  the  products  is  purchased  from  local  suppliers.

 

 

MAJOR SUPPLIER

 

TPI  Polene  Public  Company  Limited

 

 

EXPORT

 

100%  of  plastic  resin  products,  some  cement  and  mortar  are  exported to United  States  of America, Japan, Singapore, Indonesia, Malaysia, India,  Taiwan,  Republic  of  China,  Vietnam,  Hong Kong,  Myanmar,  Laos,  Korea,  Philippines,  Europe,  Africa,  Australia,  Canada  and  Middle East  countries.  Whereas,  cement  and  mortar  are   also  sold  locally.

 

 

SERVICES

 

100%  of  freight  forwarding  and  shipping  services  are  served  to  TPI  group  of  companies.

 

 

MAJOR CUSTOMERS

 

LDPE  India  Polymers  Ltd.                    :  India

Chase  Plastic  Services  Inc.                 :  U.S.A.

 

 

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  the  past  two  years.

 

 

CREDIT  

 

Sales  and  services  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.

Exports  are  against  T/T.

 

 

BANKING

 

Bangkok  Bank  Public  Co.,  Ltd.

 

 

EMPLOYMENT

 

The  subject  employs  17  staff.  

 

 

LOCATION DETAILS

 

The  premise  is  rented for  administrative  office  at  the  heading  address.  Premise  is  located  in  commercial/residential  area.

 

 

COMMENT

 

Subject  is  an  exporter of  PVC resin  to  international  markets.  Its  business  remains  solid  despite  the  stunning  in  world  market.  

 

In  2015 it  expects  the  business  will  be  more  easier  and  more  prosperous  than  the  rough  year  in  2014.

 

 

FINANCIAL INFORMATION

 

The capital  was  registered  at  Bht. 10,000,000  divided  into 100,000  shares  of  Bht. 100 each  with  fully  paid.

 

 

THE SHAREHOLDERS LISTED WERE 

 

[as  at  April  30,  2014]

 

       NAME

HOLDING

%

 

 

 

TPI  Polene  Power  Company  Limited

Nationality:  Thai

Address     :  26/56  Chantadmai  Rd.,  Thungmahamek, 

                     Sathorn,  Bangkok

99,993

99.99

Mr. Prachai  Liewpairat

Nationality:  Thai

Address     :  299  Moo  5,  Thabkwang,  Kaengkoi, 

                     Saraburi

         1

 

Mr. Prateep  Liewpairat

Nationality:  Thai

Address     :  211  Sukhumvit  49  Rd.,  Klongtonnua, 

                     Wattana,  Bangkok

         1

 

Mr. Pramual  Liewpairat

Nationality:  Thai

Address     :  999  Moo  5,  Chengnoen,  Muang,  Rayong

         1

=  0.01

Mrs. Orapin  Liewpairat

Nationality:  Thai

Address     :  229/14  Sukhumvit  49  Rd.,  Klongtonnua,

                     Wattana,  Bangkok

         1

 

Mr. Prayad  Liewpairat

Nationality:  Thai

Address     :  211  Sukhumvit  49  Rd.,  Klongtonnua, 

                     Wattana,  Bangkok

         1

 

Ms. Patraphan  Liewpairat

Nationality:  Thai

Address     :  999  Soi  Onnuch  39,  Suanluang,  Bangkok

         1

 

Mr.  Pakorn  Liewpairat

Nationality:  Thai

Address     :  999  Soi  Onnuch  39,  Suanluang,  Bangkok

         1

 

 

Total Shareholders  :  8

 

 

Share Structure 

 

[as  at  April  30,  2014]

 

Nationality

Shareholders

No. of  Share

% Shares

 

 

 

 

Thai

8

100,000

100.00

Foreign

-

-

-

 

Total

 

8

 

100,000

 

100.00

 

 

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO.

 

Mr. Santi  Pongcharoenpith  No.  4623

 

 

BALANCE SHEET [BAHT]

 

The  latest  financial  figures  published  for December  31,  2013,  2012 &  2011  were:

          

ASSETS

                                                                                                

Current Assets

2013

2012

[Adjusted]

2011

 

 

 

 

Cash and Cash Equivalents              

109,965,431

133,048,513

121,147,484

Trade  Account  Receivable

693,535,934

855,666,377

982,709,528

Other Receivable

2,580,028

494,339

-

Short-term Lending   

244,204,950

233,096,088

-

Advance  Payment  to  Related  Company 

713,362,866

322,975,439

341,960,690

Inventories

86,132,669

142,632,231

1,878,548

Refundable  Value Added Tax

-

-

98,330,423

Other  Current  Assets                  

224,927,618

162,397,443

10,143,678

 

Total  Current  Assets                 

 

2,074,709,496

 

1,850,310,430

 

1,556,170,351

 

Deferred Income  Tax  Assets

 

12,995,270

 

-

 

-

 

Total  Assets                  

 

2,087,704,766

 

1,850,310,430

 

1,556,170,351

 

 

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

 

Current Liabilities

2013

2012

[Adjusted]

2011

 

 

 

 

Short-term Loan  from

  Financial Institution

 

684,350,852

 

516,990,079

 

483,481,057

Trade Account Payable

1,269,990,476

916,212,104

764,862,966

Other Payable

47,733,471

28,960,893

-

Advance  Received  from

  Related Company

 

13,470,096

 

246,524,859

 

202,359,717

Advance Received  Goods 

-

-

13,995,800

Accrued Income Tax

-

15,486,902

15,765,131

Other Current Liabilities

185,560

-

16,193,271

 

Total Current Liabilities

 

2,015,730,455

 

1,724,174,837

 

1,496,657,942

 

Total  Liabilities               

 

2,015,730,455

 

1,724,174,837

 

1,496,657,942

 

 

 

 

Shareholders' Equity

 

 

 

 

 

 

 

 Share  capital : Baht  100  value 

  Authorized  &  issued  share 

  capital  100,000  shares

 

 

10,000,000

 

 

10,000,000

 

 

10,000,000

 

Capital  Paid                      

 

10,000,000

 

10,000,000

 

10,000,000

Retained  Earning - Unappropriated

61,974,311

116,135,593

49,512,409

 

Total  Shareholders' Equity

 

71,974,311

 

126,135,593

 

59,512,409

 

Total  Liabilities  &  Shareholders' 

  Equity

 

 

2,087,704,766

 

 

1,850,310,430

 

 

1,556,170,351

                                                  

 

PROFIT & LOSS ACCOUNT

 

Revenue

2013

2012

[Adjusted]

2011

 

 

 

 

Income from Sales

7,250,114,620

8,160,824,506

6,505,664,575

Income from Logistic

123,817,265

135,411,586

114,570,084

Gain on Exchange Rate

-

63,975,437

38,838,492

Interest  Income

11,659,265

17,341,432

1,729,603

Other  Income                             

-

14,642,795

13,976

 

Total  Revenues              

 

7,385,591,150

 

8,392,195,756

 

6,660,816,730

 

Expenses

 

 

 

 

 

 

 

Cost  of  Goods  Sold

7,223,870,728

8,118,648,640

6,461,242,746

Selling Expenses

143,293,453

159,072,159

120,112,534

Administrative  Expenses

3,642,470

3,737,050

3,854,011

Loss on Exchange Rate

58,477,071

-

-

Cost  of  Financial Cost

23,463,980

25,687,252

10,954,294

 

Total Expenses               

 

7,452,747,702

 

8,307,145,101

 

6,596,163,585

 

Profit before Income Tax

 

[67,156,552]

 

85,050,655

 

64,653,145

Income Tax

12,995,270

[19,611,521]

[21,013,109]

 

Net  Profit / [Loss]

 

[54,161,282]

 

65,439,135

 

43,640,036

 

 

FINANCIAL ANALYSIS

 

ITEM

UNIT

2013

2012

2011

 

 

 

 

 

LIQUIDITY RATIO

 

 

 

 

CURRENT RATIO

TIMES

1.03

1.07

1.04

QUICK RATIO

TIMES

0.87

0.90

0.97

 

 

 

 

 

ACTIVITY RATIO

 

 

 

 

FIXED ASSETS TURNOVER

TIMES

-

-

-

TOTAL ASSETS TURNOVER

TIMES

3.53

4.48

4.25

INVENTORY CONVERSION PERIOD

DAYS

4.35

6.41

0.11

INVENTORY TURNOVER

TIMES

83.87

56.92

3,439.49

RECEIVABLES CONVERSION PERIOD

DAYS

34.33

37.65

54.18

RECEIVABLES TURNOVER

TIMES

10.63

9.70

6.74

PAYABLES CONVERSION PERIOD

DAYS

64.17

41.19

43.21

CASH CONVERSION CYCLE

DAYS

(25.49)

2.87

11.08

 

 

 

 

 

PROFITABILITY RATIO

 

 

 

 

COST OF GOODS SOLD

%

97.96

97.86

97.60

SELLING & ADMINISTRATION

%

1.99

1.96

1.87

INTEREST

%

0.32

0.31

0.17

GROSS PROFIT MARGIN

%

2.19

3.30

3.01

NET PROFIT MARGIN BEFORE EX. ITEM

%

(0.91)

1.03

0.98

NET PROFIT MARGIN

%

(0.73)

0.79

0.66

RETURN ON EQUITY

%

(75.25)

51.88

73.33

RETURN ON ASSET

%

(2.59)

3.54

2.80

EARNING PER SHARE

BAHT

(541.61)

654.39

436.40

 

 

 

 

 

LEVERAGE RATIO

 

  

 

 

DEBT RATIO

TIMES

0.97

0.93

0.96

DEBT TO EQUITY RATIO

TIMES

28.01

13.67

25.15

TIME INTEREST EARNED

TIMES

(2.86)

3.31

5.90

 

 

 

 

 

ANNUAL GROWTH

 

 

 

 

SALES GROWTH

%

(11.12)

25.32

 

OPERATING PROFIT

%

(178.96)

31.55

 

NET PROFIT

%

(182.77)

49.95

 

FIXED ASSETS

%

-

-

 

TOTAL ASSETS

%

12.83

18.90

 

 

 

ANNUAL GROWTH: RISKY

 

An annual sales growth is -11.12%. Turnover has decreased from THB 8,296,236,092.00 in 2012 to THB 7,373,931,885.00 in 2013. While net profit has decreased from THB 65,439,135.00 in 2012 to THB -54,161,282.00 in 2013. And total assets has increased from THB 1,850,310,430.00 in 2012 to THB 2,087,704,766.00 in 2013.                

                       

PROFITABILITY : RISKY

 

PROFITABILITY RATIO

 

Gross Profit Margin

2.19

Deteriorated

Industrial Average

18.97

Net Profit Margin

(0.73)

Deteriorated

Industrial Average

1.83

Return on Assets

(2.59)

Deteriorated

Industrial Average

3.69

Return on Equity

(75.25)

Deteriorated

Industrial Average

9.75

 

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 2.19%. 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 -0.73%. 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 -2.59%.

 

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 -75.25%.

 

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

1.03

Acceptable

Industrial Average

1.44

Quick Ratio

0.87

 

 

 

Cash Conversion Cycle

(25.49)

 

 

 

 

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 1.03 times in 2013, decrease from 1.07 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 0.87 times in 2013, decrease from 0.9 times, by excluding inventory, the company may have problems meeting current liabilities.

 

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 -26 days.

 

Trend of the average competitors in the same industry for last 5 years

Current Ratio                 Uptrend

 

 

LEVERAGE : RISKY

 

 

LEVERAGE RATIO

 

Debt Ratio

0.97

Acceptable

Industrial Average

0.62

Debt to Equity Ratio

28.01

Risky

Industrial Average

1.61

Times Interest Earned

(2.86)

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 -2.87 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 0.97 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                                 Downtrend

Times Interest Earned                Stable

 

ACTIVITY : EXCELLENT

 

 

ACTIVITY RATIO

 

Fixed Assets Turnover

-

 

Industrial Average

-

Total Assets Turnover

3.53

Impressive

Industrial Average

2.02

Inventory Conversion Period

4.35

 

 

 

Inventory Turnover

83.87

Impressive

Industrial Average

6.41

Receivables Conversion Period

34.33

 

 

 

Receivables Turnover

10.63

Impressive

Industrial Average

4.15

Payables Conversion Period

64.17

 

 

 

 

The company's Account Receivable Ratio is calculated as 10.63 and 9.70 in 2013 and 2012 respectively. This ratio measures the efficiency of the company in managing its trade debtors to generate revenue. A lower ratio may indicate over extension and collection problems. Conversely, a higher ratio may indicate an overtly stringent policy. In this case, the company's A/R ratio in 2013 increased from 2012. This would suggest the company had good performance in the management of its debt collections.

 

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 6 days at the end of 2012 to 4 days at the end of 2013. This represents a positive trend. And Inventory turnover has increased from 56.92 times in year 2012 to 83.87 times in year 2013.

 

The company's Total Asset Turnover is calculated as 3.53 times and 4.48 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.66.16

UK Pound

1

Rs.103.88

Euro

1

Rs.75.89

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

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