MIRA INFORM REPORT

Report No. :	508038
Report Date :	11.05.2018

IDENTIFICATION DETAILS

Name :	TMS METALS (THAILAND) CO., LTD.
Registered Office :	54/2 Moo 3, T. Bankhlo, A. Bangpahan, Ayutthaya 13220, Thailand
Country :	Thailand
Financials (as on) :	31.12.2016
Date of Incorporation :	15.06.2009
Com. Reg. No.:	0205552009647
Legal Form :	Private Limited Company
Line of Business :	The subject is engaged in distributing and exporting various kinds of ferrous and non-ferrous metal recycling products such as stainless steel scrap, aluminum scrap, steel scrap, copper scrap, brass scrap, etc., mainly supply to metal works industry.
No. of Employees :	60

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

C

Credit Rating	Explanation	Rating Comments
C	Medium High Risk	Business dealings permissible preferably on secured basis

Status :	Moderate
Payment Behaviour :	Slow
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

Country Name	Previous Rating (30.09.2017)	Current Rating (31.12.2017)
Thailand	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

THAILAND - ECONOMIC OVERVIEW

With a relatively well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, Thailand is highly dependent on international trade, with exports accounting for about two-thirds of GDP. Thailand’s exports include electronics, agricultural commodities, automobiles and parts, and processed foods. The industry and service sectors produce about 90% of GDP. The agricultural sector, comprised mostly of small-scale farms, contributes only 10% of GDP but employs about one-third of the labor force. Thailand has attracted an estimated 3.0-4.5 million migrant workers, mostly from neighboring countries.

Over the last few decades, Thailand has reduced poverty substantially. In 2013, the Thai Government implemented a nationwide 300 baht (roughly $10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners.

Thailand’s economy is recovering from slow growth during the years since the 2014 coup. Thailand’s economic fundamentals are sound, with low inflation, low unemployment, and reasonable public and external debt levels. Tourism and government spending - mostly on infrastructure and short-term stimulus measures – have helped to boost the economy, and The Bank of Thailand has been supportive, with several interest rate reductions.

Over the longer-term, household debt levels, political uncertainty, and an aging population pose risks to growth.

Source : CIA

COMPANY NAME

TMS METALS (THAILAND) CO., LTD.

COMPANY SUMMARY

BUSINESS ADDRESS : 54/2 MOO 3, T. BANKHLO, A. BANGPAHAN,

AYUTTHAYA 13220, THAILAND

TELEPHONE : [66] 35 776-288

FAX : [66] 35 776-289

E-MAIL ADDRESS : finance-account@tmsmetals.co.th

REGISTRATION ADDRESS : SAME AS BUSINESS ADDRESS

ESTABLISHED : 2009

REGISTRATION NO. : 0205552009647

TAX ID NO. : 3033496512

CAPITAL REGISTERED : BHT. 5,000,000

CAPITAL PAID-UP : BHT. 5,000,000

SHAREHOLDER’S PROPORTION : THAI : 51.00%

MALAYSIAN : 49.00%

FISCAL YEAR CLOSING DATE : DECEMBER 31

LEGAL STATUS : PRIVATE LIMITED COMPANY

EXECUTIVE : MR. TEOH CHIN HUAT, MALAYSIAN

MANAGING DIRECTOR

NO. OF STAFF : 60

LINES OF BUSINESS : METAL RECYCLING PRODUCTS

DISTRIBUTOR AND EXPORTER

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 June 15, 2009 as a private limited company under the registered name TMS METALS (THAILAND) CO., LTD., by Thai and Malaysian groups, with the business objective to distribute metal recycling products to both domestic and overseas market. It currently employs approximately 60 staff.

The subject’s registered address is 54/2 Moo 3, T. Bankhlo, A. Bangpahan,

Ayutthaya 13220, and this is the subject’s current operation address.

THE BOARD OF DIRECTOR

Name		Nationality	Age
Mr. Teoh Chin Huat	[x]	Malaysian	51
Mr. Withep Chomphuphuen		Thai	59
Mrs. Sakhon Chomphuphuen		Thai	55

AUTHORIZED PERSON

Only the mentioned director [x] can sign or both of the rest directors can jointly sign on behalf of the subject with company’s affixed.

MANAGEMENT

Mr. Teoh Chin Huat is the Managing Director.

He is Malaysian nationality with the age of 51 years old.

Mr. Withep Chomphuphuen is the Deputy Managing Director.

He is Thai nationality with the age of 59 years old.

BUSINESS OPERATIONS

The subject is engaged in distributing and exporting various kinds of ferrous and non-ferrous metal recycling products such as stainless steel scrap, aluminum scrap, steel scrap, copper scrap, brass scrap, etc., mainly supply to metal works industry.

PURCHASE

100% of metal scraps is purchased from local supplier.

SALES

60% of the products is exported to Malaysia, Republic of China, India, Japan,

Singapore, Indonesia, and Hong Kong, the remaining 40% is sold locally.

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.

Local bills are paid by cash or on the credits term of 30-60 days.

Exports are against T/T.

BANKING

Bangkok Bank Public Company Limited

EMPLOYMENT

The subject employs approximately 60 staff.

LOCATION DETAILS

The premise is owned for administrative office and recycled factory at the heading

address. Premise is located in provincial.

COMMENT

The subject’s operating performance in 2016 was satisfactory with an increase in both sales or service income and net profit comparing to the previous year. The increase was caused by high consumption of the products from various industries expansion.

FINANCIAL INFORMATION

The capital was registered at Bht. 2,000,000 divided into 20,000 shares of Bht. 100

each with fully paid.

On August 6, 2012, the registered capital was increased to Bht. 5,000,000 divided into

50,000 shares of Bht. 100 each with fully paid.

THE SHAREHOLDERS LISTED WERE : [as at April 30, 2017]

NAME	HOLDING	%
Mr. Teoh Chin Huat Nationality: Malaysian Address : 54/2 Moo 3, T. Bankhlo, A. Bangpahan, Ayutthaya	24,500	49.00
Mrs. Sakhon Chomphuphuen Nationality: Thai Address : 66 Moo 13, T. Nonglerng, A. Muang, Bueng Kan	15,500	31.00
Mr. Withep Chomphuphuen Nationality: Thai Address : 66 Moo 13, T. Nonglerng, A. Muang, Bueng Kan	5,000	10.00
Mr. Prayoon Chomphuphuen Nationality: Thai Address : 66 Moo 13, T. Nonglerng, A. Muang, Bueng Kan	5,000	10.00

Total Shareholders : 4

Share Structure [as at April 30, 2017]

Nationality	Shareholders	No. of Share	% Shares
Thai	3	25,500	51.00
Foreign-Malaysian	1	24,500	49.00
Total	4	50,000	100.00

NAME OF AUDITOR & CERTIFIED PUBLIC ACCOUNTANT NO. :

Ms. Pattinee Tangkawattanakul No. 8979

financials

TMS METALS (THAILAND) CO., LTD.

BALANCE SHEET [BAHT]

The latest financial figures published for December 31, 2016, 2015 and 2014 were:

ASSETS

Current Assets	2016	2015	2014
Cash and Cash Equivalents	1,038,482.11	640,484.40	545,086.38
Short-term Investment	341,091.57	337,407.14	-
Trade Accounts and Other Receivable	6,958,234.97	3,476,834.04	11,174,737.34
Inventories	6,328,678.00	3,762,440.47	4,423,198.65
Other Current Assets	26,773.46	76,540.54	305,018.75
Total Current Assets	14,693,260.11	8,293,706.59	16,448,041.12
Property, Plant and Equipment	25,156,401.47	28,366,153.53	29,239,200.63
Other Non-current Assets	80,000.00	80,000.00	80,000.00
Total Assets	39,929,661.58	36,739,860.12	45,767,241.75

LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]

Current Liabilities	2016	2015	2014
Bank Overdraft and Short-term Loan From Financial Institutions	1,967,332.35	1,987,845.74	933,252.38
Trade Accounts and Other Payable	5,346,737.55	13,957,574.11	13,885,580.27
Current Portion of Long-term Liabilities	4,050,000.00	6,120,000.00	4,800,000.00
Short-term Loans	32,077,147.00	16,798,021.89	26,525,959.78
Accrued Income Tax	90,050.31	73,952.96	231,925.26
Other Current Liabilities	23,997.28	240,233.31	298,460.54
Total Current Liabilities	43,555,264.49	39,177,628.01	46,675,178.23
Long-term Loan	6,650,137.63	8,263,537.08	8,481,265.77
Total Liabilities	50,205,402.12	47,441,165.09	55,156,444.00
Shareholders’ Equity
Share capital : Baht 100 par value authorized, and issued share capital 50,000 shares	5,000,000.00	5,000,000.00	5,000,000.00
Capital Paid	5,000,000.00	5,000,000.00	5,000,000.00
Retained Earning -Unappropriated [Deficit]	[15,275,740.54]	[15,701,304.97]	[14,389,202.25]
Total Shareholders’ Equity	[10,275,740.54]	[10,701,304.97]	[9,389,202.25]
Total Liabilities and Shareholders’ Equity	39,929,661.58	36,739,860.12	45,767,241.75

PROFIT & LOSS ACCOUNT

Revenue	2016	2015	2014
Sales or Services Income	47,930,404.40	24,543,956.27	45,854,988.45
Interest Income	5,260.75	1,696.59	1,040.61
Other Income	271,351.12	36,398.14	283,719.48
Total Revenues	48,207,016.27	24,582,051.00	46,139,748.54
Expenses
Cost of Goods Sold or Services	40,303,839.25	17,890,329.66	35,544,984.25
Selling Expenses	909,979.18	284,571.27	2,980,883.94
Administrative Expenses	5,061,711.28	6,390,440.45	5,746,617.64
Total Expenses	46,275,529.71	24,565,341.38	44,272,485.83
Profit /[Loss] before Financial Cost and Income Tax	1,931,486.56	16,709.62	1,867,262.71
Financial Cost	[1,319,199.14]	[1,214,480.95]	[1,489,245.51]
Profit /[Loss] before Income Tax	612,287.42	[1,197,771.33]	378,017.20
Income Tax	[186,722.99]	[114,331.39]	[231,925.26]
Net Profit / [Loss]	425,564.43	[1,312,102.72]	146,091.94

TMS METALS (THAILAND) CO., LTD.

FINANCIAL ANALYSIS

ITEM	UNIT	2016	2015	2014
LIQUIDITY RATIO
CURRENT RATIO	TIMES	0.34	0.21	0.35
QUICK RATIO	TIMES	0.19	0.11	0.25
ACTIVITY RATIO
FIXED ASSETS TURNOVER	TIMES	1.91	0.87	1.57
TOTAL ASSETS TURNOVER	TIMES	1.20	0.67	1.00
INVENTORY CONVERSION PERIOD	DAYS	57.31	76.76	45.42
INVENTORY TURNOVER	TIMES	6.37	4.75	8.04
RECEIVABLES CONVERSION PERIOD	DAYS	52.99	51.70	88.95
RECEIVABLES TURNOVER	TIMES	6.89	7.06	4.10
PAYABLES CONVERSION PERIOD	DAYS	48.42	284.76	142.59
CASH CONVERSION CYCLE	DAYS	61.88	(156.30)	(8.22)
PROFITABILITY RATIO
COST OF GOODS SOLD	%	84.09	72.89	77.52
SELLING & ADMINISTRATION	%	12.46	27.20	19.03
INTEREST	%	2.75	4.95	3.25
GROSS PROFIT MARGIN	%	16.49	27.26	23.10
NET PROFIT MARGIN BEFORE EX. ITEM	%	4.03	0.07	4.07
NET PROFIT MARGIN	%	0.89	(5.35)	0.32
RETURN ON EQUITY	%	-	-	-
RETURN ON ASSET	%	1.07	(3.57)	0.32
EARNING PER SHARE	BAHT	8.51	(26.24)	2.92
LEVERAGE RATIO
DEBT RATIO	TIMES	1.26	1.29	1.21
DEBT TO EQUITY RATIO	TIMES	(4.89)	(4.43)	(5.87)
TIME INTEREST EARNED	TIMES	1.46	0.01	1.25
ANNUAL GROWTH
SALES GROWTH	%	95.28	(46.47)
OPERATING PROFIT	%	11,459.13	(99.11)
NET PROFIT	%	132.43	(998.13)
FIXED ASSETS	%	(11.32)	(2.99)
TOTAL ASSETS	%	8.68	(19.72)

ANNUAL GROWTH : IMPRESSIVE

An annual sales growth is 95.28%. Turnover has increased from THB 24,543,956.27 in 2015 to THB 47,930,404.40 in 2016. While net profit has increased from THB -1,312,102.72 in 2015 to THB 425,564.43 in 2016. And total assets has increased from THB 36,739,860.12 in 2015 to THB 39,929,661.58 in 2016.

PROFITABILITY : IMPRESSIVE

PROFITABILITY RATIO

Gross Profit Margin	16.49	Impressive	Industrial Average	4.51
Net Profit Margin	0.89	Impressive	Industrial Average	(0.54)
Return on Assets	1.07	Impressive	Industrial Average	(1.53)
Return on Equity	-		Industrial Average	(5.33)

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 16.49%. 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 0.89% compared with those of its average competitors in the same industry, indicated that business was an efficient operator in a dominant position within its industry.

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 1.07%, 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.

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

Return on Assets Downtrend

Return on Equity Downtrend

LIQUIDITY : RISKY

LIQUIDITY RATIO

Current Ratio	0.34	Risky	Industrial Average	1.48
Quick Ratio	0.19
Cash Conversion Cycle	61.88

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 0.34 times in 2016, increase from 0.21 times, then the company may not be efficiently using its current assets. 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 0.19 times in 2016, increase from 0.11 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 62 days.

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

Current Ratio Uptrend

LEVERAGE : ACCEPTABLE

LEVERAGE RATIO

Debt Ratio	1.26	Risky	Industrial Average	0.74
Debt to Equity Ratio	(4.89)	Risky	Industrial Average	2.78
Times Interest Earned	1.46	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 1.47 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 1.26 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 : ACCEPTABLE

ACTIVITY RATIO

Fixed Assets Turnover	1.91	Impressive	Industrial Average	-
Total Assets Turnover	1.20	Deteriorated	Industrial Average	2.83
Inventory Conversion Period	57.31
Inventory Turnover	6.37	Satisfactory	Industrial Average	6.57
Receivables Conversion Period	52.99
Receivables Turnover	6.89	Deteriorated	Industrial Average	7.85
Payables Conversion Period	48.42

The company's Account Receivable Ratio is calculated as 6.89 and 7.06 in 2016 and 2015 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 2016 decreased from 2015. This would suggest the company had deteriorated 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 77 days at the end of 2015 to 57 days at the end of 2016. This represents a positive trend. And Inventory turnover has increased from 4.75 times in year 2015 to 6.37 times in year 2016.

The company's Total Asset Turnover is calculated as 1.2 times and 0.67 times in 2016 and 2015 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	INR 6738
UK Pound	1	INR 91.39
Euro	1	INR 79.89
THB	1	INR 2.11

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	NIY
Report Prepared by :	KET

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.