MIRA INFORM REPORT
|
Report No. : |
346772 |
|
Report Date : |
27.10.2015 |
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) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
28.05.2004 |
|
|
|
|
Com. Reg. No.: |
0105547072493 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, Distributor
and Exporter
of PVC Stabilizers. |
|
|
|
|
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.
THAILAND - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise
economy, and generally pro-investment policies Thailand has historically had a
strong economy due in part to competitive industrial and agriculture exports -
mostly electronics, agricultural commodities, automobiles and parts, and
processed foods. The economy experienced slow growth and declining exports in
2014, in part due to domestic political turmoil and sluggish global demand.
With full employment, Thailand attracts an estimated 2-4 million migrant
workers from neighboring countries, and faces labor shortages. Following the
May 2014 coup d'etat, tourism decreased 6-7% but is beginning to recover. The
household debt to GDP ratio is over 80%. 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 baht has remained stable.
|
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
TAX
ID NO. : 3031406346
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 registered
name 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
and distributing of
PVC stabilizer and
chemicals for plastic
application and paint
industries.
BRAND NAME
“PAU TAI”
PRODUCTION CAPACITY
3,600 tons per
annum
PURCHASE
80% of raw
materials is purchased
from local suppliers and
agents, and the remaining 20%
is imported from Republic of China,
India, Taiwan, Germany
and France.
MAJOR SUPPLIER
Pau Tai Industrial
Corporation : Taiwan
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.
UR Chemical 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 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 had
gradually grown in
line with demand
from related industries.
However, its business
contraction has seen since
the year 2013
due to industrial
downturn from the
country’s sluggish economy.
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 April 30,
2015]
|
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 April
30, 2015]
|
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. Supawinee Jeewasuwan No.
9650
BALANCE
SHEET [BAHT]
The latest financial figures published
as at December
31, 2014, 2013
& 2012 were:
ASSETS
|
Current Assets |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Cash and Cash Equivalents |
146,300.95 |
2,773,887.05 |
143,601.42 |
|
Trade Accounts Receivable
|
42,046,512.10 |
38,412,047.41 |
59,337,975.19 |
|
Inventories |
66,269,517.90 |
55,339,505.44 |
48,414,273.39 |
|
Other Current Assets
|
3,658,492.91 |
11,158,977.80 |
9,094,677.25 |
|
|
|
|
|
|
Total Current Assets
|
112,120,823.86 |
107,684,417.70 |
116,990,527.25 |
|
Cash at Bank pledged as a Collateral |
3,375,110.27 |
3,368,395.28 |
343,287.73 |
|
Fixed Assets |
23,359,405.97 |
21,210,527.81 |
22,286,347.19 |
|
Other Non-current Assets |
485,850.00 |
366,500.00 |
366,500.00 |
|
Total Assets |
139,341,190.10 |
132,629,840.79 |
139,986,662.17 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Bank Overdraft & Short-term Loan From Financial Institutions |
7,220,865.89 |
10,000,000.00 |
10,184,221.70 |
|
Trade Accounts & Other
Payable |
45,150,656.11 |
31,177,315.53 |
37,703,934.38 |
|
Revenue Department Payable |
375,038.31 |
1,096,461.45 |
2,877,733.30 |
|
Installment Payable |
2,116,811.03 |
- |
577,377.32 |
|
Other Current Liabilities |
1,100,006.55 |
1,983,370.39 |
2,582,130.33 |
|
|
|
|
|
|
Total Current Liabilities |
55,963,377.89 |
44,257,147.37 |
53,925,364.03 |
|
Long-term Loan |
- |
3,527,000.00 |
6,650,000.00 |
|
Total Liabilities |
55,963,377.89 |
47,784,147.37 |
60,575,364.03 |
|
|
|
|
|
|
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 |
32,677,812.21 |
34,345,693.42 |
29,411,298.14 |
|
Statutory Reserve |
700,000.00 |
500,000.00 |
- |
|
Total Shareholders' Equity |
83,3778,12.21 |
84,845,693.42 |
79,411,298.14 |
|
Total Liabilities &
Shareholders' Equity |
139,341,190.10 |
132,629,840.79 |
139,986,662.17 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2014 |
2013 |
2012 |
|
|
|
|
|
|
Sales & Services Income |
161,967,567.09 |
202,981,833.44 |
243,394,226.02 |
|
Gain on Exchange Rate |
1,729,375.84 |
3,312,491.83 |
1,332,274.96 |
|
Other Income |
510,558.31 |
793,567.82 |
688,931.09 |
|
Total Revenues |
164,207,501.24 |
207,087,893.09 |
245,415,432.07 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
133,511,201.94 |
164,443,731.79 |
203,531,125.75 |
|
Selling Expenses |
4,993,772.38 |
6,556,322.97 |
5,591,618.39 |
|
Administrative Expenses |
18,058,227.70 |
17,244,394.96 |
15,223,563.46 |
|
Loss on Exchange Rate |
1,702,960.68 |
4,586,214.31 |
- |
|
Total Expenses |
158,266,162.70 |
192,830,664.03 |
224,346,307.60 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
5,941,338.54 |
14,257,229.06 |
21,069,124.47 |
|
Financial Cost |
[2,014,081.44] |
[2,225,542.53] |
[2,943,662.35] |
|
|
|
|
|
|
Profit / [Loss] before Income
Tax |
3,927,257.10 |
12,031,686.53 |
18,125,462.12 |
|
Income Tax |
[1,395,138.31] |
[2,597,291.25] |
[4,598,844.15] |
|
|
|
|
|
|
Net Profit / [Loss] |
2,532,118.79 |
9,434,395.28 |
13,526,617.97 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2014 |
2013 |
2012 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.00 |
2.43 |
2.17 |
|
QUICK RATIO |
TIMES |
0.75 |
0.93 |
1.10 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
6.93 |
9.57 |
10.92 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.16 |
1.53 |
1.74 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
181.17 |
122.83 |
86.82 |
|
INVENTORY TURNOVER |
TIMES |
2.01 |
2.97 |
4.20 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
94.75 |
69.07 |
88.98 |
|
RECEIVABLES TURNOVER |
TIMES |
3.85 |
5.28 |
4.10 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
123.44 |
69.20 |
67.62 |
|
CASH CONVERSION CYCLE |
DAYS |
152.49 |
122.70 |
108.19 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
82.43 |
81.01 |
83.62 |
|
SELLING & ADMINISTRATION |
% |
14.23 |
11.73 |
8.55 |
|
INTEREST |
% |
1.24 |
1.10 |
1.21 |
|
GROSS PROFIT MARGIN |
% |
18.95 |
21.01 |
17.21 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.67 |
7.02 |
8.66 |
|
NET PROFIT MARGIN |
% |
1.56 |
4.65 |
5.56 |
|
RETURN ON EQUITY |
% |
3.04 |
11.12 |
17.03 |
|
RETURN ON ASSET |
% |
1.82 |
7.11 |
9.66 |
|
EARNING PER SHARE |
BAHT |
5.06 |
18.87 |
27.05 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.40 |
0.36 |
0.43 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.67 |
0.56 |
0.76 |
|
TIME INTEREST EARNED |
TIMES |
2.95 |
6.41 |
7.16 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(20.21) |
(16.60) |
|
|
OPERATING PROFIT |
% |
(58.33) |
(32.33) |
|
|
NET PROFIT |
% |
(73.16) |
(30.25) |
|
|
FIXED ASSETS |
% |
10.13 |
(4.83) |
|
|
TOTAL ASSETS |
% |
5.06 |
(5.26) |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -20.21%. Turnover has decreased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
18.95 |
Impressive |
Industrial
Average |
17.91 |
|
Net Profit Margin |
1.56 |
Satisfactory |
Industrial
Average |
2.03 |
|
Return on Assets |
1.82 |
Acceptable |
Industrial
Average |
2.74 |
|
Return on Equity |
3.04 |
Acceptable |
Industrial
Average |
4.35 |
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 18.95%. 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 1.56%.
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 1.82%.
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 3.04%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Downtrend
LIQUIDITY :
ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
2.00 |
Impressive |
Industrial
Average |
1.74 |
|
Quick Ratio |
0.75 |
|
|
|
|
Cash Conversion Cycle |
152.49 |
|
|
|
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 2 times in 2014, decreased from 2.43 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 0.75 times in 2014,
decreased from 0.93 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 153 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.40 |
Acceptable |
Industrial
Average |
0.35 |
|
Debt to Equity Ratio |
0.67 |
Impressive |
Industrial
Average |
0.54 |
|
Times Interest Earned |
2.95 |
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 2.95 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 0.4 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 :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
6.93 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
1.16 |
Satisfactory |
Industrial
Average |
1.35 |
|
Inventory Conversion Period |
181.17 |
|
|
|
|
Inventory Turnover |
2.01 |
Deteriorated |
Industrial
Average |
7.93 |
|
Receivables Conversion Period |
94.75 |
|
|
|
|
Receivables Turnover |
3.85 |
Acceptable |
Industrial
Average |
5.80 |
|
Payables Conversion Period |
123.44 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.85 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 123 days at the
end of 2013 to 181 days at the end of 2014. This represents a negative trend.
And Inventory turnover has decreased from 2.97 times in year 2013 to 2.01 times
in year 2014.
The company's Total Asset Turnover is calculated as 1.16 times and 1.53
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.64.96 |
|
|
1 |
Rs.99.55 |
|
Euro |
1 |
Rs.71.62 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIT |
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.