MIRA INFORM REPORT
|
Report No. : |
312489 |
|
Report Date : |
23.03.2015 |
IDENTIFICATION DETAILS
|
Name : |
PAU TAI INDUSTRIAL [THAILAND]
COMPANY LIMITED |
|
|
|
|
Registered Office : |
66/52 Moo 12, Budhamonthon Sai
5 Road, T. Raikhing, A.
Sampran, Nakornpathom 73210 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
28.05.2004 |
|
|
|
|
Com. Reg. No.: |
0105547072493 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in manufacturing PVC
stabilizer and chemicals
for plastic application
and paint industries. |
|
|
|
|
No. of Employees : |
40 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
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 – 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
PAU TAI INDUSTRIAL
[THAILAND] COMPANY LIMITED
SUMMARY
BUSINESS ADDRESS : 66/52 MOO 12,
BUDHAMONTHON SAI 5
ROAD,
T. RAIKHING,
A. SAMPRAN, NAKORNPATHOM 73210,
THAILAND
TELEPHONE : [66] 2811-7818-9
FAX : [66] 2431-3138
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 2004
REGISTRATION NO. : 0105547072493
CAPITAL REGISTERED : BHT.
50,000,000
CAPITAL PAID-UP : BHT.
50,000,000
SHAREHOLDER’S PROPORTION : CHINESE :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. WONG WANGVORAWUT,
THAI
MANAGING DIRECTOR
NO. OF STAFF : 40
LINES OF BUSINESS : PVC
STABILIZERS
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 May
28, 2004 as
a private limited
company under the
name style PAU TAI
INDUSTRIAL [THAILAND]
COMPANY LIMITED by
Thai and Chinese
groups, in order
to manufacture PVC
stabilizers for domestic
and international markets.
In 2012, the
subject was wholly
owned by Chinese
groups. It currently
employs approximately 40
staff.
The subject’s registered address
is 66/52 Moo 12, Budhamonthon
Sai 5 Rd., T. Raikhing, A.
Sampran, Nakornpathom 73210,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Wong Wangvorawut |
|
Thai |
76 |
|
Mr. Lin, Yu-Min |
|
Chinese |
47 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Wong Wangvorawut is
the Managing Director.
He is Thai
nationality with the
age of 76
years old.
Mr. Lin, Yu-Min is
the Deputy Managing
Director and Factory
Manager.
He is Chinese
nationality with the age
of 47 years old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
PVC stabilizer and
chemicals for plastic
application and paint
industries.
PRODUCTION CAPACITY
3,600 tons per
annum
PURCHASE
80% of raw material
is purchased from
local suppliers and
agents, and the remaining 20%
is imported from
Republic of China, India,
Taiwan, Germany and
France.
SALES
85% of the
products is sold
locally by wholesale
to manufacturers and
end-users.
EXPORT
15% of the
products is exported
to Taiwan, Myanmar,
Pakistan, Egypt and
Republic of China.
MAJOR CUSTOMERS
TOA Group
Nippon Paint [Thailand] Co.,
Ltd.
Dyno Paint Co.,
Ltd.
ICI [Thailand] Co.,
Ltd.
Oriental Paint Co.,
Ltd.
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 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
Kasikornbank Public Co.,
Ltd.
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject employs
approximately 40 staff.
LOCATION DETAILS
The premise is rented
for administrative office, factory
and warehouse at
the heading
address. Premise is
located in provincial.
COMMENT
Subject was formed
in 2004 as a
manufacturer of plastic stabilizer.
The products are
mainly served to paint
industry. Since commencement,
its business has gradually
grown in line
with demand from
related industries.
The sluggish economy in
the country in
2013 and continuing into 2014 had
an impact the
pace of industrial
growth.
FINANCIAL INFORMATION
The capital was
registered at Bht.
5,000,000 divided into
50,000 shares of
Bht. 100
each.
The capital was
increased later as
follows:
Bht. 40,000,000
on September 16,
2004
Bht. 50,000,000
on January 13,
2009
The latest registered capital was
increased to Bht. 50,000,000 divided
into 500,000 shares of
Bht. 100 each
with fully paid.
THE SHAREHOLDERS LISTED WERE:
[as at June
20, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Lin, Yu-Chiang Nationality: Chinese Address : 301
Songchiang Rd., Taipei,
Taiwan |
290,000 |
58.00 |
|
Mr. Lin, Yu-Min Nationality: Chinese Address : 301
Songchiang Rd., Taipei,
Taiwan |
185,000 |
37.00 |
|
Mr. Lin, Chen-Mao Nationality: Chinese Address : 301
Songchiang Rd., Taipei,
Taiwan |
25,000 |
5.00 |
Total Shareholders : 3
Share Structure [as
at June 20,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign - Chinese |
3 |
500,000 |
100.00 |
|
Total |
3 |
500,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC ACCOUNTANT
NO. :
Ms. Sasithorn Sunthornpanich No.
6257
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 |
2,773,887.05 |
143,601.42 |
3,020,886.67 |
|
Short-term Investment |
- |
- |
282,937.09 |
|
Trade Accounts Receivable
|
38,412,047.41 |
59,337,975.19 |
45,554,419.35 |
|
Inventories |
55,339,505.44 |
48,414,273.39 |
39,912,041.46 |
|
Other Current Assets
|
11,158,977.80 |
9,094,677.25 |
7,346,453.89 |
|
|
|
|
|
|
Total Current Assets
|
107,684,417.70 |
116,990,527.25 |
96,116,738.46 |
|
Cash at Bank pledged as a Collateral |
3,368,395.28 |
343,287.73 |
- |
|
Fixed Assets |
21,210,527.81 |
22,286,347.19 |
24,447,474.80 |
|
Other Non - current Assets |
366,500.00 |
366,500.00 |
473,594.96 |
|
Total Assets |
132,629,840.79 |
139,986,662.17 |
121,037,808.22 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
10,000,000.00 |
10,184,221.70 |
10,000,000.00 |
|
Trade Accounts & Other
Payable |
31,177,315.53 |
37,703,934.38 |
31,001,054.26 |
|
Revenue Department Payable |
1,096,461.45 |
2,877,733.30 |
- |
|
Installment Payable |
- |
577,377.32 |
- |
|
Other Current Liabilities |
1,983,370.39 |
2,582,130.33 |
3,585,959.79 |
|
|
|
|
|
|
Total Current Liabilities |
44,257,147.37 |
53,925,364.03 |
44,587,014.05 |
|
Long-term Loan |
3,527,000.00 |
6,650,000.00 |
7,750,000.00 |
|
Other Non-current Liabilities |
- |
- |
1,511,606.00 |
|
Total Liabilities |
47,784,147.37 |
60,575,364.03 |
53,848,620.05 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 500,000 shares |
50,000,000.00 |
50,000,000.00 |
50,000,000.00 |
|
|
|
|
|
|
Capital Paid |
50,000,000.00 |
50,000,000.00 |
50,000,000.00 |
|
Retained Earning Unappropriated |
34,845,693.42 |
29,411,298.14 |
17,189,188.17 |
|
Total Shareholders' Equity |
84,845,693.42 |
79,411,298.14 |
67,189,188.17 |
|
Total Liabilities &
Shareholders' Equity |
132,629,840.79 |
139,986,662.17 |
121,037,808.22 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales & Services Income |
202,981,833.44 |
243,394,226.02 |
188,253,303.51 |
|
Gain on Exchange Rate |
3,312,491.83 |
1,332,274.96 |
- |
|
Other Income |
793,567.82 |
688,931.09 |
300,231.13 |
|
Total Revenues |
207,087,893.09 |
245,415,432.07 |
188,553,534.64 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
164,443,731.79 |
203,531,125.75 |
- |
|
Selling Expenses |
6,556,322.97 |
5,591,618.39 |
- |
|
Administrative Expenses |
17,244,394.96 |
15,223,563.46 |
- |
|
Loss on Exchange Rate |
4,586,214.31 |
- |
- |
|
Change in Finished Goods and Work in
Process |
- |
- |
[4,078,426.85] |
|
Material Supplies |
- |
- |
143,141,987.10 |
|
Employees Expenses |
- |
- |
10,498,544.52 |
|
Depreciation |
- |
- |
3,178,471.04 |
|
Other Expenses |
- |
- |
14,527,646.78 |
|
Total Expenses |
192,830,664.03 |
224,346,307.60 |
167,268,222.59 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
14,257,229.06 |
21,069,124.47 |
21,285,312.05 |
|
Financial Cost |
[2,225,542.53] |
[2,943,662.35] |
[2,484,058.17] |
|
Profit / [Loss] before Income
Tax |
12,031,686.53 |
18,125,462.12 |
18,801,253.88 |
|
Income Tax |
[2,597,291.25] |
[4,598,844.15] |
[5,985,976.94] |
|
|
|
|
|
|
Net Profit / [Loss] |
9,434,395.28 |
13,526,617.97 |
12,815,276.94 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.43 |
2.17 |
2.16 |
|
QUICK RATIO |
TIMES |
0.93 |
1.10 |
1.10 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
9.57 |
10.92 |
7.70 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.53 |
1.74 |
1.56 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
122.83 |
86.82 |
101.77 |
|
INVENTORY TURNOVER |
TIMES |
2.97 |
4.20 |
3.59 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
69.07 |
88.98 |
88.32 |
|
RECEIVABLES TURNOVER |
TIMES |
5.28 |
4.10 |
4.13 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
69.20 |
67.62 |
79.05 |
|
CASH CONVERSION CYCLE |
DAYS |
122.70 |
108.19 |
111.05 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
81.01 |
83.62 |
76.04 |
|
SELLING & ADMINISTRATION |
% |
11.73 |
8.55 |
7.27 |
|
INTEREST |
% |
1.10 |
1.21 |
1.32 |
|
GROSS PROFIT MARGIN |
% |
21.01 |
17.21 |
24.12 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
7.02 |
8.66 |
11.31 |
|
NET PROFIT MARGIN |
% |
4.65 |
5.56 |
6.81 |
|
RETURN ON EQUITY |
% |
11.12 |
17.03 |
19.07 |
|
RETURN ON ASSET |
% |
7.11 |
9.66 |
10.59 |
|
EARNING PER SHARE |
BAHT |
18.87 |
27.05 |
25.63 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.36 |
0.43 |
0.44 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.56 |
0.76 |
0.80 |
|
TIME INTEREST EARNED |
TIMES |
6.41 |
7.16 |
8.57 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(16.60) |
29.29 |
|
|
OPERATING PROFIT |
% |
(32.33) |
(1.02) |
|
|
NET PROFIT |
% |
(30.25) |
5.55 |
|
|
FIXED ASSETS |
% |
(4.83) |
(8.84) |
|
|
TOTAL ASSETS |
% |
(5.26) |
15.66 |
|
ANNUAL GROWTH :
RISKY
An annual sales growth is -16.6%. Turnover has decreased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
21.01 |
Deteriorated |
Industrial Average |
62.38 |
|
Net Profit Margin |
4.65 |
Acceptable |
Industrial Average |
6.26 |
|
Return on Assets |
7.11 |
Impressive |
Industrial Average |
6.99 |
|
Return on Equity |
11.12 |
Satisfactory |
Industrial Average |
11.35 |
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 21.01%. 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 4.65%.
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. Return on Assets ratio is
7.11%, higher figure when compared with those of its average competitors in the
same industry, indicated that business was an efficient profit in a dominant
position within its industry.
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 11.12%.
Trend of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
2.43 |
Impressive |
Industrial Average |
2.09 |
|
Quick Ratio |
0.93 |
|
|
|
|
Cash Conversion Cycle |
122.70 |
|
|
|
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 2.43 times in 2013, increased from 2.17 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 0.93 times in 2013,
decreased from 1.1 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 123 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.36 |
Acceptable |
Industrial Average |
0.36 |
|
Debt to Equity Ratio |
0.56 |
Impressive |
Industrial Average |
0.56 |
|
Times Interest Earned |
6.41 |
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 lower the percentage means that the company is using less
leverage and has a stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 6.41 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 0.36 less than 0.5, most of the company's
assets are financed through equity.
Trend of the average competitors in the same industry for last 5 years
Debt Ratio Downtrend
Times Interest Earned Stable
ACTIVITY : IMPRESSIVE
ACTIVITY RATIO
|
Fixed Assets Turnover |
9.57 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.53 |
Impressive |
Industrial Average |
1.12 |
|
Inventory Conversion Period |
122.83 |
|
|
|
|
Inventory Turnover |
2.97 |
Acceptable |
Industrial Average |
4.66 |
|
Receivables Conversion Period |
69.07 |
|
|
|
|
Receivables Turnover |
5.28 |
Impressive |
Industrial Average |
4.83 |
|
Payables Conversion Period |
69.20 |
|
|
|
The company's Account Receivable Ratio is calculated as 5.28 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 87 days at the end of 2012 to 123
days at the end of 2013. This represents a negative trend. And Inventory
turnover has decreased from 4.2 times in year 2012 to 2.97 times in year 2013.
The company's Total Asset Turnover is calculated as 1.53 times and 1.74
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 Downtrend
Receivables Turnover Uptrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.49 |
|
|
1 |
Rs.92.26 |
|
Euro |
1 |
Rs.66.80 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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.