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MIRA
INFORM REPORT
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Report No. : |
509853 |
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Report Date : |
19.05.2018 |
IDENTIFICATION DETAILS
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Name : |
AA METAL SCRAP LIMITED PARTNERSHIP |
|
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Registered Office : |
54/92 Soi Prachauthit
33 Yaek 4, Prachauthit Road,
Bangmod, Thungkru, Bangkok 10140, |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
05.11.2007 |
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Com. Reg. No.: |
0103550035569 |
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Legal Form : |
Limited partnership |
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Line of Business : |
The subject is engaged
in purchasing, distributing and exporting wide
range of metal
scraps and metal
recycled products. The
products are as
follows: ·
Scrap
rolls: hot/cold rolled
steel, used & discard rolled
steel ·
Steel
scraps ·
Aluminum scraps:
aluminum tense, aluminum
turning and UBC
can ·
Stainless steel
scrap ·
Tungsten carbide
scraps ·
High
speed steel scraps ·
SKD 11 and
SKD 61 steels ·
Mineral [manganese
ore] ·
Light
melting scraps ·
Steel
pipes |
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|
|
|
No. of Employees : |
20 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
A |
|
Credit Rating |
Explanation |
Rating Comments |
|
A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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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 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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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
AA METAL SCRAP LIMITED PARTNERSHIP
SUMMARY
BUSINESS ADDRESS : 54/92
SOI PRACHAUTHIT 33
YAEK 4,
PRACHAUTHIT ROAD,
BANGMOD,
THUNGKRU, BANGKOK
10140, THAILAND
TELEPHONE
: [66] 2872-5484,
081 807-6544, 089
016-9914
FAX :
[66] 2872-5485
E-MAIL ADDRESS : ankur.aa@aametalscrap.com
ankrisa.aa@aametalscrap.com
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 2007
REGISTRATION NO. : 0103550035569
TAX ID NO. : 3032844086
CAPITAL REGISTERED : BHT.
4,000,000
CAPITAL PAID-UP
: BHT.
4,000,000
PARTNER’S PROPORTION : THAI :
52.00%
INDIAN
: 48.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : LIMITED PARTNERSHIP
EXECUTIVE
: MS.
ANKRISA CHAROENWANYING, THAI
MANAGING PARTNER
NO. OF
STAFF : 20
LINES OF
BUSINESS : METAL
SCRAPS & METAL
RECYCLED 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 November
5, 2007 as
a limited partnership under the
registered name AA
METAL SCRAP LIMITED PARTNERSHIP
by Thai and Indian partners, with the
business objective to
purchase and supply
various metal scraps
and metal recycled
products to both
domestic and overseas
markets. It currently
employs approximately 20
staff.
The subject’s
registered address was
initially at 90/92
Moo 4, Prachauthit
Rd.,
Bangmod, Thungkru,
Bangkok 10140.
On November
1, 2011, the
subject’s registered address
was changed to
54/92 Soi Prachauthit
33 Yaek 4, Prachauthit Rd.,
Bangmod, Thungkru, Bangkok 10140,
by the Thungkru District
Office, and this
is the subject’s
current operation address.
AUTHORIZED PERSON
Ms. Ankrisa
Charoenwanying signs on
behalf of the
subject with seal
affixed. She also
bears the full
financial responsibility by
law.
MANAGEMENT
Ms. Ankrisa
Charoenwanying
is the Managing
Partner.
She is Thai
nationality with the
age of 36
years old.
Mr. Ankur Dubey is the
General Manager.
He is Indian
nationality with the
age of 52
years old.
BUSINESS OPERATIONS
The subject is engaged
in purchasing, distributing
and exporting wide range
of metal scraps
and metal recycled
products. The products
are as follows:
·
Scrap
rolls: hot/cold rolled
steel, used & discard rolled
steel
·
Steel
scraps
·
Aluminum scraps:
aluminum tense, aluminum
turning and UBC can
·
Stainless steel
scrap
·
Tungsten carbide
scraps
·
High
speed steel scraps
·
SKD 11
and SKD 61 steels
·
Mineral
[manganese ore]
·
Light
melting scraps
·
Steel
pipes
PURCHASE
100% of
the products is
purchased from local
suppliers.
SALES
60% of
the products is
sold locally by
wholesale to manufacturers, the
remaining 40% is
imported from India,
Malaysia, Vietnam, Republic
of China, Taiwan,
Cambodia and Indonesia.
ASSOCIATED COMPANY
Royal Freight & Cargo
Co., Ltd.
Business Type :
Freight forwarding
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
credits term of
30 days.
Exports are against
T/T.
BANKING
Bangkok Bank
Public Company Limited
EMPLOYMENT
The subject
employs approximately 20
staff.
LOCATION DETAILS
The premise
is owned for
administrative office at
the heading address.
Premise is
located in
commercial/residential area.
COMMENT
Subject purchases,
sells and exports
metal scraps for
recycle processing. The
products are varies such as steel, stainless steel, brass,
aluminum, tungsten and etc.
The subject
reported a slowdown
in its operating
performance in 2016
from a decrease in
both sales or
service income and
net profit comparing
to the previous year.
The subject has
obtained a decrease
in sales or service
income for the
past two years.
If there is
no improvement or increase
in demand of the
products, the subject would
inevitably continue to encounter a slow growth.
FINANCIAL INFORMATION
The capital
was originally registered
at Bht. 1,000,000 which was carried by 2
persons as followed:
Name Amount
Ms. Ankrisa
Charoenwanying Bht. 900,000 [Unlimited
Partner]
Mrs. Chaleaw
Charoenwanying Bht. 100,000
On February 13,
2008, the capital
was increased to
Bht. 2,000,000 which
was carried by
3 persons as
followed:
Name Amount
Ms. Ankrisa
Charoenwanying Bht. 1,400,000
[Unlimited Partner]
Mrs. Chaleaw
Charoenwanying Bht. 100,000
Mr. Ankur Dubey Bht. 500,000
On March 13,
2008, the capital
was held by
3 persons as
followed:
Name Amount
Ms. Ankrisa
Charoenwanying Bht. 1,020,000
[Unlimited Partner]
Mrs. Chaleaw
Charoenwanying Bht. 20,000
Mr. Ankur Dubey Bht. 960,000
On November 1,
2011, the capital
was increased to
Bht. 4,000,000 which
was carried by
3 persons as
followed:
Name Age Amount
Ms. Ankrisa
Charoenwanying 36 Bht.
2,040,000 [Unlimited Partner]
Mrs. Chaleaw
Charoenwanying 62 Bht. 40,000
Mr. Ankur Dubey [Indian] 52 Bht. 1,920,000
NAME OF AUDITOR
& CERTIFIED PUBLIC ACCOUNTANT NO. :
Mr. Prawat Sangchan No. 2425
financialS
AA METAL
SCRAP LIMITED PARTNERSHIP
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 |
308,858.76 |
367,696.06 |
437,615.99 |
|
Other Current Assets
|
1,660,775.96 |
1,86+0,070.59 |
2,031,440.43 |
|
|
|
|
|
|
Total Current Assets |
1,969,634.72 |
2,227,766.65 |
2,469,056.42 |
|
Long-term Loan |
17,700,000.00 |
19,300,000.00 |
19,800,000.00 |
|
Property, Plant and Equipment |
2,726,461.52 |
727,195.55 |
1,598,717.37 |
|
Other
Non-current Assets |
269,866.59 |
1,015.05 |
14,074.06 |
|
Total Assets |
22,665,962.83 |
22,255,977.25 |
23,881,847.85 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Bank Overdraft
and Short-term Loan from
Financial Institution |
1,428,034.68 |
11,127,368.94 |
11,300,391.73 |
|
Trade Accounts
and Other Payables |
- |
- |
1,680,669.86 |
|
Current Portion
of Hire-purchase Payable |
762,406.56 |
- |
- |
|
Accrued
Income Tax |
139,223.06 |
165,109.81 |
265,018.80 |
|
Other
Current Liabilities |
7,764,142.91 |
520,596.68 |
871,412.00 |
|
|
|
|
|
|
Total
Current Liabilities |
10,093,807.21 |
11,813,075.43 |
14,117,492.39 |
|
|
|
|
|
|
Long-term Hire-purchase Payable |
1,692,539.76 |
- |
- |
|
Total Liabilities |
11,786,346.97 |
11,813,075.43 |
14,117,492.39 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Capital Paid |
4,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning - Unappropriated [Deficit] |
6,879,615.86 |
6,442,901.82 |
5,764,355.46 |
|
|
|
|
|
|
Total Shareholders'
Equity |
10,879,615.86 |
10,442,901.82 |
9,764,355.46 |
|
Total
Liabilities and Shareholders' Equity |
22,665,962.83 |
22,255,977.25 |
23,881,847.85 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2016 |
2015 |
2014 |
|
|
|
|
|
|
Sales Income |
115,397,741.02 |
166,011,685.27 |
183,169,778.15 |
|
Service Income |
7,847,696.97 |
17,025,747.53 |
22,646,379.55 |
|
Other Income |
730,010.12 |
96,500.00 |
710,519.49 |
|
Total Revenues |
123,975,448.11 |
183,133,932.80 |
206,526,677.19 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold & Service |
116,167,937.47 |
174,931,259 |
198,184,947.37 |
|
Selling Expenses |
1,989,211.09 |
2,046,602.66 |
2,477,575.69 |
|
Administrative
Expenses |
4,480,212.88 |
4,839,929.36 |
4,065,603.18 |
|
Total Expenses |
122,637,361.44 |
181,817,254.02 |
204,728,126.24 |
|
|
|
|
|
|
Profit / [Loss]
before Financial Cost &
Income Tax |
1,338,086.67 |
1,316,678.78 |
1,798,550.95 |
|
Financial Cost |
[662,149.57] |
[323,022.61] |
[775,354.43] |
|
|
|
|
|
|
Profit / [Loss]
before Income Tax |
675,937.10 |
993,656.17 |
1,023,196.52 |
|
Income Tax |
[239,223.06] |
[315,109.81] |
[415,018.80] |
|
Net Profit / [Loss]
|
436,714.04 |
678,546.36 |
608,177.72 |
AA
METAL SCRAP LIMITED
PARTNERSHIP
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2016 |
2015 |
2014 |
|
|
|
|
|
|
|
LIQUIDITY
RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
0.20 |
0.19 |
0.17 |
|
QUICK RATIO |
TIMES |
0.03 |
0.03 |
0.03 |
|
|
|
|
|
|
|
ACTIVITY
RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
45.20 |
251.70 |
128.74 |
|
TOTAL ASSETS TURNOVER |
TIMES |
5.44 |
8.22 |
8.62 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
INVENTORY TURNOVER |
TIMES |
- |
- |
- |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
RECEIVABLES TURNOVER |
TIMES |
- |
- |
- |
|
PAYABLES CONVERSION PERIOD |
DAYS |
- |
- |
- |
|
CASH CONVERSION CYCLE |
DAYS |
- |
- |
- |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
94.26 |
95.57 |
96.29 |
|
SELLING & ADMINISTRATION |
% |
5.25 |
3.76 |
3.18 |
|
INTEREST |
% |
0.54 |
0.18 |
0.38 |
|
GROSS PROFIT MARGIN |
% |
6.33 |
4.48 |
4.05 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.09 |
0.72 |
0.87 |
|
NET PROFIT MARGIN |
% |
0.35 |
0.37 |
0.30 |
|
RETURN ON EQUITY |
% |
4.01 |
6.50 |
6.23 |
|
RETURN ON ASSET |
% |
1.93 |
3.05 |
2.55 |
|
EARNING PER SHARE |
BAHT |
10.92 |
16.96 |
15.20 |
|
|
|
|
|
|
|
LEVERAGE
RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.52 |
0.53 |
0.59 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.08 |
1.13 |
1.45 |
|
TIME INTEREST EARNED |
TIMES |
2.02 |
4.08 |
2.32 |
|
|
|
|
|
|
|
ANNUAL
GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(32.67) |
(11.07) |
|
|
OPERATING PROFIT |
% |
1.63 |
(26.79) |
|
|
NET PROFIT |
% |
(35.64) |
11.57 |
|
|
FIXED ASSETS |
% |
274.93 |
(54.51) |
|
|
TOTAL ASSETS |
% |
1.84 |
(6.81) |
|
ANNUAL
GROWTH : SATISFACTORY
An annual sales growth is -32.67%. Turnover has decreased
from THB
PROFITABILITY
: EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
6.33 |
Impressive |
Industrial
Average |
4.51 |
|
Net Profit Margin |
0.35 |
Impressive |
Industrial
Average |
(0.54) |
|
Return on Assets |
1.93 |
Impressive |
Industrial
Average |
(1.53) |
|
Return on Equity |
4.01 |
Impressive |
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. Gross Profit Margin is 6.33%. 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. Net Profit
Margin ratio is 0.35%, higher figure when 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 1.93%, 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. Return on
Equity ratio is 4.01%, 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 |
0.20 |
Risky |
Industrial
Average |
1.48 |
|
Quick Ratio |
0.03 |
|
|
|
|
Cash Conversion Cycle |
- |
|
|
|
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 0.2 times in 2016, increase from 0.19 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 0.03
times in 2016, same figure as
in 2015, then the company has not
enough current assets that presumably can be quickly converted to cash for pay
financial obligations.
Trend
of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE
: IMPRESSIVE
LEVERAGE
RATIO
|
Debt Ratio |
0.52 |
Impressive |
Industrial
Average |
0.74 |
|
Debt to Equity Ratio |
1.08 |
Satisfactory |
Industrial
Average |
2.78 |
|
Times Interest Earned |
2.02 |
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 2.03 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 0.52 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
: EXCELLENT
ACTIVITY
RATIO
|
Fixed Assets Turnover |
45.20 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
5.44 |
Impressive |
Industrial
Average |
2.83 |
|
Inventory Conversion Period |
- |
|
|
|
|
Inventory Turnover |
- |
|
Industrial
Average |
6.57 |
|
Receivables Conversion Period |
- |
|
|
|
|
Receivables Turnover |
- |
|
Industrial
Average |
7.85 |
|
Payables Conversion Period |
- |
|
|
|
The company's Total Asset Turnover is calculated as 5.44
times and 8.22 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 67.96 |
|
|
1 |
INR 91.88 |
|
Euro |
1 |
INR 80.26 |
|
THB |
1 |
INR 2.11 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
VIV |
|
|
|
|
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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.