MIRA
INFORM REPORT
|
Report Date : |
02.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
FLAWLESS CO., LTD. |
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Registered Office : |
Room 1909-1910, 19th
Floor, Jewellery Trade
Center, 919/245-246, Silom
Road, Silom, Bangrak,
Bangkok 10500 |
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Country : |
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Financials (as on) : |
31.12.2005 |
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Date of Incorporation : |
1985 |
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Com. Reg. No.: |
0105528041715 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and distributor
of diamonds and
precious stones |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
name
FLAWLESS CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
1909-1910, 19th FLOOR,
919/245-246,
TELEPHONE : [66] 2630-0444-6,
2235-9664
FAX : [66] 2630-0443,
2237-8562
E-MAIL ADDRESS : flawless@asiaaccess.net.th
REGISTRATION ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1985
REGISTRATION NO. : 0105528041715 [Former : 4171/2528]
CAPITAL
REGISTERED : BHT.
25,000,000
CAPITAL
PAID-UP : BHT.
25,000,000
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
POONAM CHAND KOTHARI,
INDIAN
MANAGING DIRECTOR
NO. OF
STAFF : 40
LINES OF
BUSINESS : DIAMONDS AND PRECIOUS STONES
IMPORTER, EXPORTER
& DISTRIBUTOR
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH
MANAGEMENT STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on November 29, 1985 as a
private limited company under
the name style
FLAWLESS CO., LTD, by Thai and Indian groups,
in order to import and distribute
diamonds and precious stones to local
market. It currently
employs 40 staff.
The
subject’s registered address is
Room 1909-1910, 19th
Floor, Jewellery Trade Center, 919/245-246
Silom Rd., Silom, Bangrak, Bangkok 10500,
and this is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
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Mr. Sunil Kothari
|
|
Indian |
45 |
|
Mr. Alongkorn Bovonveerakij |
|
Thai |
55 |
|
Mr. Poonam Chand
Kothari |
|
Indian |
39 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Poonam Chand
Kothari is the
Managing Director.
He is Indian
nationality with the
age of 39
years old.
Mr. Sunil Kothari is
the Executive Director.
He is Indian
nationality with the
age of 45 years old.
Mr. Alongkorn
Bovonveerakij is the Executive
Director.
He is Thai
nationality with the
age of 55
years old.
Mrs. Panvadee
Bovonveerakij is the
Sales & Marketing
Manager.
She is Thai
nationality.
BUSINESS OPERATIONS
The subject’s activities
are importer and distributor of
diamonds and precious stones to local jewelry
industry.
The subject also exports Thai cutting
diamonds to
PURCHASE
100%
of diamonds and
precious stones are
purchased from India
and South Africa.
MAJOR SUPPLIER
Flawless Diamond (
EXPORT
The subject exports
Thai cutting diamonds
to India, Hong Kong,
Japan and Indonesia.
SALES [LOCAL]
Its
products are sold
locally by wholesale to
local traders and
manufacturers.
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
for the past
two years.
SUBSIDIARY AND
AFFILIATED COMPANY
The subject is
not found to
have any subsidiary
nor affiliated company
here in Thailand.
CREDIT
Sales
are by cash
or the credit
term of 30
days.
Local
bills are paid
by cash or
on the credit
term of 30
days.
Imports
are by L/C
at sight or T/T
on negotiates term.
Exports
are against L/C
at sight.
BANKING
Bangkok Bank
Public Co., Ltd.
[Head Office :
EMPLOYMENT
The
subject employs approximately
40 staff [office
and sales staff].
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a prime commercial area.
COMMENT
The subject is a leading supplier of
diamonds and precious stones in local market for many years.
Its reputation and large customers base as well as high consumption of
jewelry products both domestic and exports
have spurred demand of diamonds and precious stones from local traders and manufacturers.
The
subject’s sales remains
healthy and the
market trend is
still promising.
FINANCIAL INFORMATION
The capital
was initially registered at Bht.
1,000,000 divided into
1,000 shares of
Bht. 1,000 each.
The capital was increased later as follows:
Baht 2,000,000
on September 6, 1988
Baht 3,000,000
on April 30, 1992
Baht 16,000,000 on
October 25, 1995
Bht. 25,000,000
on March 14,
2006
The latest registered capital was increased
to Bht. 25,000,000 divided into 25,000 shares
of Bht. 1,000 each
with fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at
October 13,
2006]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mrs. Panwadee
Bovonveerakij Nationality: Thai Address : 19/62 Moo 2,
Ladprao, |
7,250 |
29.00 |
|
Mrs. Suree
Wonganekkasem Nationality: Thai Address :
Bangkhen, |
5,000 |
20.00 |
|
Mr. Sunil
Kothari Nationality: Indian Address : |
2,075 |
8.30 |
|
Mr. Poonam
Chand Kothari Nationality: Indian Address : |
2,075 |
8.30 |
|
Sunil &
Richabh Group Nationality: Thai Address :
Banglampulang, Klongsan, |
1,900 |
7.60 |
|
Sunil &
Rohit Group Nationality: Thai Address :
Banglampulang, Klongsan, |
1,900 |
7.60 |
|
Punam and
Sivij Group Nationality: Thai Address :
Banglampulang, Klongsan, |
1,900 |
7.60 |
|
Punam and
Samridh Group Nationality: Thai Address :
Banglampulang, Klongsan, |
1,900 |
7.60 |
|
Mr. Vishal
Kolesha Nationality: Indian Address : |
500 |
2.00 |
|
Mr. Alongkorn
Bovonveerakij Nationality: Thai Address : 19/62
Moo 2, Ladprao, |
250 |
1.00 |
|
Mr. Nasant
Wonganekkasem Nationality: Thai Address : 61/210
Moo 7, Bangchan, Klongsamwa, |
250 |
1.00 |
Total Shareholders
11
NAME OF
AUDITOR & CERTIFIED
PUBLIC
ACCOUNTANT NO.
Mr. Aniruth Ngamrungkij
No. 3730
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2005 &
2004 were:
ASSETS
|
Current Assets |
2005 |
2004 |
|
|
|
|
|
Cash in hand
& at Bank
|
3,723,771.35 |
3,324,018.89 |
|
Trade Accts. Receivable |
68,058,067.17 |
81,749,485.06 |
|
Inventories |
111,677,921.23 |
60,664,496.73 |
|
Other Current Assets
|
532,364.02 |
548,449.88 |
|
Total Current
Assets |
183,992,123.77 |
146,286,450.56 |
|
|
|
|
|
Fixed Assets |
8,175,905.57 |
7,428,365.46 |
|
Total Assets
|
192,168,029.34 |
153,714,816.02 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2005 |
2004 |
|
|
|
|
|
Bank Overdraft &
Loan from Bank |
39,941,392.24 |
29,802,575.55 |
|
Trade Accts. Payable |
121,173,704.48 |
95,088,251.12 |
|
Other Payable |
1,965,567.25 |
19,660.00 |
|
Current Portion of Hire-Purchase Payable |
1,189,627.69 |
878,950.12 |
|
Accrued Expenses |
550,349.61 |
1,754,011.98 |
|
Accrued Income Tax |
319,024.48 |
414,627.50 |
|
Other Current Liabilities |
693,368.82 |
1,147,830.16 |
|
Total Current
Liabilities |
165,833,034.57 |
129,105,906.43 |
|
Hire-Purchase Payable Net of
Current Portion |
1,885,378.23 |
2,051,721.12 |
|
Total Liabilities |
167,718,412.80 |
131,157,627.55 |
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Shareholders'
Equity |
|
|
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|
|
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Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 16,000 shares |
16,000,000.00 |
16,000,000.00 |
|
Capital Paid |
16,000,000.00 |
16,000,000.00 |
|
Statutory Reserve |
1,600,000.00 |
1,600,000.00 |
|
Retained Earning -
Unappropriated |
6,849,616.54 |
4,957,188.47 |
|
Total
Shareholders' Equity |
24,449,616.54 |
22,557,188.47 |
|
Total
Liabilities & Shareholders' Equity |
192,168,029.34 |
153,714,816.02 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2005 |
2004 |
|
|
|
|
|
Sales |
423,924,639.01 |
388,538,201.75 |
|
Profit on Exchange
Rate |
- |
1,664,599.55 |
|
Other Income |
51,884.67 |
31,039.89 |
|
Total Revenues
|
423,976,523.68 |
390,233,841.19 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
397,280,120.89 |
368,773,097.04 |
|
Selling & Administrative Expenses |
18,342,676.16 |
13,321,353.99 |
|
Loss on Exchange
Rate |
3,439,894.85 |
- |
|
Total Expenses |
419,062,691.90 |
382,094,451.03 |
|
Profit / [Loss] from Operation |
4,913,831.78 |
8,139,390.16 |
|
Interest Expense |
[2,020,717.93] |
[1,410,432.15] |
|
Income Tax |
[1,000,685.78] |
[2,084,037.89] |
|
Net Profit / [Loss] |
1,892,428.07 |
4,644,920.12 |
FINANCIAL ANALYSIS
Annual Growth
& Profitability
|
Annual Growth |
2005 |
2004 |
|
Net Sales |
9.11 |
|
|
Operating Profit |
[5.93] |
|
|
Net Profit |
[59.26] |
|
|
Fixed Assets |
10.06 |
|
|
Total Assets |
25.02 |
|
|
Profitability |
|
|
|
Cost of Good
Sold |
93.71 |
94.91 |
|
Operating Profit Margin |
1.97 |
2.09 |
|
S & A
Expenses |
4.33 |
3.43 |
|
Interest Paid |
0.48 |
0.36 |
|
Other Revenues |
0.01 |
0.44 |
|
Net Profit Margin |
0.45 |
1.20 |
|
Earning Per Shares |
118.28 |
290.31 |
|
No. of Shares |
16,000 |
16,000 |
Net Sales was increased by
9.11%, Operating Profit
was decreased by
5.93%, Net Profit
was decreased by
59.26%, Fixed Assets
was increased by
10.06%, Total Assets
was increased by
25.02%.
Compare each cost with sales, Cost of Good Sold was decreased from 94.91% to 93.71%, Operating Profit Margin was decreased from 2.09% to 1.97%, S & A Expenses was increased from 3.43% to 4.33%, Interest Paid was increased from 0.36% to 0.48%, Other Revenues was decreased from 0.44% to 0.01%, Net Profit Margin was decreased from 1.20% to 0.45%.
Earning Per Shares
was decreased from
290.31 baht per
share to 118.28
baht per share.
Liquidity
|
Liquidity |
2005 |
2004 |
|
Current Ratio |
1.11 |
1.13 |
|
Quick - assets
ratio |
0.43 |
0.66 |
Current Ratio was decreased from 1.13 to 1.11, show Current Assets can cover Current Liabilities, Liquidity Ratio of the company was good, Quick - assets ratio was decreased from 0.66 to 0.43, capacity to pay Short Term Loan was not good, because Current Assets without Inventory can not cover Current Liabilities.
Leverage
|
Leverage |
2005 |
2004 |
|
D/E Ratio |
6.86 |
5.81 |
|
Times Interest Earned |
4.13 |
5.77 |
D/E Ratio was
increased from 5.81
to 6.86, show
the company had
fund from Loan
more than fund
from Equity, investment
risked of the
company is high,
Times Interest Earned
was decreased from
5.77 to 4.13,
capacity to pay
interest paid was
good.
Efficiency
|
Efficiency |
2005 |
2004 |
|
Fixed Assets Turnover |
51.85 |
52.30 |
|
Total Assets Turnover |
2.21 |
2.53 |
|
Return on Assets |
0.98 |
3.02 |
|
Return on Equity |
7.74 |
20.59 |
|
Day's Payable |
103.00 |
89.00 |
|
Day’s Inventories |
95.00 |
57.00 |
|
Day’s Receivables |
58.00 |
76.00 |
Fixed Assets Turnover
was decreased from
52.30 times to
51.85 times, Total
Assets Turnover was
decreased from 2.53
times to 2.21
times, show the
company could not
use Assets so
efficiently, Return on
Assets was decreased
from 3.02 to
0.98, Return on
Equity was decreased
from 20.59 to
7.74, capacity to
use Assets to
make profit was
not good.
Day's Payable was
increased from 89
days to 103
days, and Day’s
Inventories was increased
from 57 days
to 95 days,
while Day’s Receivables
was decreased from
76 days to
58 days.
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 |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average/normal. |
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
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%)