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|
MIRA INFORM REPORT
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Report No. : |
510494 |
|
Report Date : |
24.05.2018 |
IDENTIFICATION DETAILS
|
Name : |
DYSTAR THAI LTD. |
|
|
|
|
Registered Office : |
150 Moo 8, Soi Praeksa, Sukhumvit Road, T. Taiban, A. Muang, Samutprakarn 10280 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2017 |
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|
|
Date of Incorporation : |
13.06.1995 |
|
|
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Com. Reg. No.: |
0105538070025 |
|
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|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject is
engaged in importing
and distributing industrial
chemicals for variety
of industries such
as textiles, printing,
paper & packaging,
paints & coatings, pigment and
leather industries. The
products are specialty color, dyestuff,
pigment & inorganic pigments, ink |
|
|
|
|
No. of Employees : |
25 |
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 |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
No Complaints |
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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 |
|
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
DYSTAR
THAI LTD
SUMMARY
BUSINESS
ADDRESS : 150 MOO
8, SOI PRAEKSA,
SUKHUMVIT ROAD,
T. TAIBAN,
A. MUANG, SAMUTPRAKARN
10280,
THAILAND
TELEPHONE : [66] 2701-4805-8
FAX :
[66] 2701-4809,
2701-3259
E-MAIL
ADDRESS : dystar.thai@dystar.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1995
REGISTRATION
NO. : 0105538070025
TAX
ID NO. : 3011585627
CAPITAL REGISTERED : BHT. 103,800,000
CAPITAL PAID-UP : BHT.
103,800,000
SHAREHOLDER’S PROPORTION : FOREIGN
: 100.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. YALIN XU,
AUSTRALIAN
MANAGING DIRECTOR
NO.
OF STAFF : 25
LINES
OF BUSINESS : INDUSTRIAL CHEMICALS
IMPORTER AND
DISTRIBUTOR
CORPORATE
PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on June 13, 1995 as
a private limited
company under the registered
name DYSTAR THAI
LTD., by foreign
groups, initially as
a wholly owned
subsidiary of DyStar Colours
Distribution GmbH., Germany. Its
business objective is
to import and
distribute variety of industrial
chemicals. It currently
employs 25 staff.
On
January 19, 2012, the
subject has become
a wholly owned
subsidiary of DyStar
Global Holdings (Singapore)
Pte. Ltd., Singapore.
The
subject’s registered address
was 17th Floor,
Lake Ratchada Building,
193
Ratchadapisek Rd.,
Klongtoey, Bangkok 10110.
On
June 15, 2010, the
subject’s registered address
was relocated to 150
Moo 8,
Soi Praeksa, Sukhumvit Rd., T. Taiban,
A. Muang, Samutprakarn 10280,
and this is
the company’s current operation address.
THE
BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sureshkumar Savajibhai Gondalia |
|
Indian |
42 |
|
Mr. Shankrbhai Rugnathbhai Patel |
|
Indian |
69 |
|
Mr. Viroj Olarachin |
|
Thai |
63 |
|
Mr. Yalin Xu |
|
Australian |
52 |
|
Mr. Jian Fang Yao |
|
Chinese |
34 |
|
Mr. Liu Bin |
|
Chinese |
46 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Yalin Xu is
the Managing Director.
He is Australian
nationality with the
age of 52
years old.
Mr. Viroj Olarachin is
the General Manager.
He is Thai
nationality with the
age of 63
years old.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing industrial
chemicals for variety
of industries such
as textiles, printing,
paper & packaging,
paints & coatings, pigment and
leather industries. The
products are specialty color, dyestuff,
pigment & inorganic
pigments, ink and
etc.
BRAND NAME
“DyStar”
PURCHASE
Most of the
products are imported
from Germany, India,
Republic of China,
Singapore, Indonesia, and
the remaining is
purchased from local
suppliers.
MAJOR
SUPPLIERS
DyStar Colours Distribution GmbH. : Germany
DyStar (Singapore) Pte.
Ltd. : Singapore
DyStar China Ltd. : Republic
of China
DyStar India PVT.
Ltd. : India
PT. DyStar Colours Indonesia : Indonesia
SALES
100% of the
products is sold
locally by wholesale
to dealers, manufacturers
and
end-users.
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.
Imports are by
L/C at sight
or T/T.
BANKING
Bangkok Bank Public
Company Limited
EMPLOYMENT
The
subject employs 25
staff.
LOCATION
DETAILS
The
premises is rented
for administrative office at
the heading address.
Premises is
located
in provincial, on
the outskirts of Bangkok.
COMMENT
The
subject was formed
in 1995 as
an importer and
distributor of industrial
chemicals. Its products
have been used
in various industries.
The subject reported
a slowdown in
the operating performance in the year
2017 from a
decrease in both
sales or service
income and net
profit comparing to
the pervious year.
Nevertheless, the subject’s business
remains promising and
profitable in line
with a regular
demand of the products
from local industries.
FINANCIAL
INFORMATION
The
capital was registered
at Bht. 45,000,000
divided into 45,000
shares of
Bht. 1,000
each.
On
July 6, 1998,
the capital was
increased to Bht. 103,800,000 divided
into 103,800
shares
of Bht. 1,000
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 27, 2018]
|
NAME |
HOLDING |
% |
|
|
|
|
|
DyStar Global Holdings (Singapore) Pte.
Ltd. Nationality: Singaporean Address :
8 Cross Street, #11-00 PWC
Building,
Singapore |
103,798 |
99.998 |
|
Mr. Yalin Xu Nationality: Australian Address : 929
Bukit Timah Road,
03-21,
Singapore 589642 |
1 |
0.001 |
Mr. Ruan Weixiang
Nationality: Chinese Address : Daoxu
Town, Shangyu, Zhejiang
Province,
Republic of China |
1 |
0.001 |
Total Shareholders : 3
SHARE STRUCTURE [AS
AT APRIL 27,
2018]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
3 |
103,800 |
100.00 |
|
Total |
3 |
103,800 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC ACCOUNTANT
NO.
Ms. Saleela Puttijarungvong No.
6817
Financials
DYSTAR
THAI LTD.
BALANCE SHEET [BAHT]
The
latest financial figures
published for December 31,
2017, 2016 and
2015 were:
ASSETS
|
Current Assets |
2017 |
2016 |
2015 |
|
|
|
|
|
|
Cash and Cash Equivalents
|
50,179,868 |
43,740,925 |
20,884,638 |
|
Trade Accounts and
Other Receivable |
125,413,852 |
103,982,860 |
113,531,838 |
|
Inventories |
105,377,431 |
103,444,983 |
86,555,366 |
|
Other Current Assets
|
14,882,529 |
13,666,953 |
8,174,561 |
|
|
|
|
|
|
Total Current Assets
|
295,853,680 |
264,835,721 |
229,140,403 |
|
Property, Plant and Equipment |
25,694,658 |
22,693,552 |
22,185,009 |
|
Intangible Assets |
19,832 |
40,166 |
60,499 |
|
Deferred Income Tax |
- |
- |
3,699,733 |
|
Other Non-current Assets |
3,958,366 |
3,675,592 |
141,000 |
|
Total Assets |
325,526,536 |
291,245,031 |
255,232,644 |
LIABILITIES & SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2017 |
2016 |
2015 |
|
|
|
|
|
|
Trade Accounts
and Other Payable |
46,084,223 |
28,892,832 |
50,715,220 |
|
Accrued Income
Tax |
2,790,085 |
7,596,302 |
3,054,010 |
|
Other Current
Liabilities |
12,952,197 |
10,936,932 |
7,348,709 |
|
|
|
|
|
|
Total Current
Liabilities |
61,826,505 |
47,426,066 |
61,117,939 |
|
Provision for
Employee Benefits |
8,973,288 |
8,523,684 |
9,221,486 |
|
Total Liabilities |
70,799,793 |
55,949,750 |
70,339,425 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value Authorized and
issued share capital
103,800 shares
|
103,800,000 |
103,800,000 |
103,800,000 |
|
|
|
|
|
|
Capital Paid |
103,800,000 |
103,800,000 |
103,800,000 |
|
Retained Earning Appropriated - statutory reserve |
2,180,362 |
2,180,362 |
2,180,362 |
|
Unappropriated |
148,746,381 |
129,314,919 |
78,912,857 |
|
|
|
|
|
|
Total Shareholders' Equity
|
254,726,743 |
235,295,281 |
184,893,219 |
|
Total Liabilities and
Shareholders' Equity |
325,526,536 |
291,245,031 |
255,232,644 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2017 |
2016 |
2015 |
|
|
|
|
|
|
Sales or Services Income |
514,724,664 |
555,123,002 |
465,271,695 |
|
Other Income |
656,873 |
449,561 |
465,511 |
|
Total Revenues |
515,381,537 |
555,572,563 |
465,737,206 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold or Services |
440,172,185 |
445,183,882 |
384,368,274 |
|
Selling Expenses |
41,538,815 |
40,572,044 |
39,909,787 |
|
Administrative Expenses |
9,353,689 |
6,864,166 |
9,378,098 |
|
Total Expenses |
491,064,689 |
492,620,092 |
433,656,159 |
|
|
|
|
|
|
Profit / [Loss] before Income
Tax |
24,316,848 |
62,952,471 |
32,081,047 |
|
Income Tax |
[4,885,386] |
[12,550,409] |
[6,514,065] |
|
Net Profit / [Loss] |
19,431,462 |
50,402,062 |
25,566,982 |
DYSTAR THAI
LTD.
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2017 |
2016 |
2015 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
4.79 |
5.58 |
3.75 |
|
QUICK RATIO |
TIMES |
2.84 |
3.11 |
2.20 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
20.03 |
24.46 |
20.97 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.58 |
1.91 |
1.82 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
87.38 |
84.81 |
82.19 |
|
INVENTORY TURNOVER |
TIMES |
4.18 |
4.30 |
4.44 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
88.93 |
68.37 |
89.06 |
|
RECEIVABLES TURNOVER |
TIMES |
4.10 |
5.34 |
4.10 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
38.21 |
23.69 |
48.16 |
|
CASH CONVERSION CYCLE |
DAYS |
138.10 |
129.49 |
123.10 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
85.52 |
80.20 |
82.61 |
|
SELLING & ADMINISTRATION |
% |
9.89 |
8.55 |
10.59 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
14.61 |
19.89 |
17.49 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
4.72 |
11.34 |
6.90 |
|
NET PROFIT MARGIN |
% |
3.78 |
9.08 |
5.50 |
|
RETURN ON EQUITY |
% |
7.63 |
21.42 |
13.83 |
|
RETURN ON ASSET |
% |
5.97 |
17.31 |
10.02 |
|
EARNING PER SHARE |
BAHT |
187.20 |
485.57 |
246.31 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.22 |
0.19 |
0.28 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.28 |
0.24 |
0.38 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(7.28) |
19.31 |
|
|
OPERATING PROFIT |
% |
(61.37) |
96.23 |
|
|
NET PROFIT |
% |
(61.45) |
97.14 |
|
|
FIXED ASSETS |
% |
13.22 |
2.29 |
|
|
TOTAL ASSETS |
% |
11.77 |
14.11 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -7.28%. Turnover has decreased from THB
PROFITABILITY :
IMPRESSIVE
PROFITABILITY
RATIO
|
Gross Profit Margin |
14.61 |
Impressive |
Industrial Average |
2.23 |
|
Net Profit Margin |
3.78 |
Impressive |
Industrial Average |
3.34 |
|
Return on Assets |
5.97 |
Impressive |
Industrial Average |
5.87 |
|
Return on Equity |
7.63 |
Satisfactory |
Industrial Average |
11.48 |
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 14.61%. 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 3.78%,
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
5.97%, 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 7.63%.
Trend of the
average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Downtrend
LIQUIDITY :
SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
4.79 |
Impressive |
Industrial Average |
1.72 |
|
Quick Ratio |
2.84 |
|
|
|
|
Cash Conversion Cycle |
138.10 |
|
|
|
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 4.79 times in 2017, decrease from 5.58 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 2.84 times in 2017,
decrease from 3.11 times, although excluding inventory so the company still
have good short-term financial strength.
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 139 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.22 |
Impressive |
Industrial Average |
0.54 |
|
Debt to Equity Ratio |
0.28 |
Impressive |
Industrial Average |
1.19 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.22 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 Uptrend
Times Interest Earned Stable
ACTIVITY :
SATISFACTORY
ACTIVITY RATIO
|
Fixed Assets Turnover |
20.03 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.58 |
Satisfactory |
Industrial Average |
1.76 |
|
Inventory Conversion Period |
87.38 |
|
|
|
|
Inventory Turnover |
4.18 |
Deteriorated |
Industrial Average |
17.89 |
|
Receivables Conversion Period |
88.93 |
|
|
|
|
Receivables Turnover |
4.10 |
Satisfactory |
Industrial Average |
5.71 |
|
Payables Conversion Period |
38.21 |
|
|
|
The company's Account Receivable Ratio is calculated as 4.10 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 85 days at the
end of 2016 to 87 days at the end of 2017. This represents a negative trend.
And Inventory turnover has decreased from 4.3 times in year 2016 to 4.18 times
in year 2017.
The company's Total Asset Turnover is calculated as 1.58 times and 1.91
times in 2017 and 2016 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 |
INR 68.21 |
|
|
1 |
INR 91.43 |
|
Euro |
1 |
INR 80.24 |
|
Thai baht |
1 |
INR 2.13 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRI |
|
|
|
|
Report Prepared by
: |
SYL |
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.