MIRA INFORM REPORT
|
Report Date : |
30.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
NATASHA
CREATIONS CO., LTD. |
|
|
|
|
Registered Office : |
14th Floor, Bangkok Gem & Jewellery Tower, 322/27-29 Surawong Road, Siphya, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
30.03.1998 |
|
|
|
|
Com. Reg. No.: |
0105541020432 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer & Exporter of Diamond and Gold Jewelry Products |
|
|
|
|
No. of Employees : |
135 |
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 : |
Good |
|
Payment
Behaviour : |
Usually 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.
ECGC Country Risk Classification List – September 30th, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
Thailand |
b1 |
b1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
NATASHA CREATIONS
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 14th FLOOR, BANGKOK
GEM & JEWELLERY
TOWER, 322/27-29
SURAWONG ROAD,
SIPHYA, BANGRAK,
BANGKOK 10500
TELEPHONE : [66] 2234-1202,
2233-0054, 2233-4288
FAX : [66] 2237-5216
E-MAIL
ADDRESS : info@natasha-creations.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1998
REGISTRATION
NO. : 0105541020432 [Former : 283/2541]
CAPITAL REGISTERED : BHT.
60,000,000
CAPITAL PAID-UP : BHT.
60,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. RAJEEV KUMAR
KAPADIA, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 135
LINES
OF BUSINESS : DIAMOND AND
GOLD JEWELRY PRODUCTS
MANUFACTURER &
EXPORTER
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
March 30, 1998
as a private
limited company under
the name style NATASHA CREATIONS CO.,
LTD., by Thai and Indian groups, to manufacture diamond and
gold jewelry to
overseas markets. It currently
employs approximate 135
staff.
The
subject’s registered address
is 322/27-29 Surawong
Rd., Siphya, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Ms. Isira Aoonharasmee |
|
Thai |
48 |
|
Mr. Rajeev Kumar Kapadia |
|
Indian |
49 |
|
Mrs. Shilpa Rajeev Kapadia |
|
Indian |
- |
|
Mr. Salil Prasan Manilal |
|
American |
49 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Rajeev Kumar Kapadia
is the Managing
Director.
He is Indian
nationality with the
age of 49
years old.
Mr. Anan Prakobtham is
the Factory Manager.
He is Thai
nationality.
Ms. Isira Aoonharasamee is the
General Manager.
She is Thai
nationality with the
age of 48
years old.
BUSINESS OPERATIONS
The subject is engaged in manufacturing
and exporting various
kinds of jewelry
products, e.g. diamond jewelry with
14k and 18k
gold. The products are
included ring, earring,
pendent, bracelet, necklace & others., under its own brand name “NATASHA-CREATION”, as
well as customer’s
brands.
PURCHASE
Raw materials such as diamond, gold, gemstone and accessories are purchased from suppliers
both local and
overseas, mainly in India, Hong
Kong, Japan and
South Africa.
MAJOR SUPPLIER
Gem
Star Company
: India
EXPORT
100% of the products is exported to United Kingdom, Switzerland, United States of America, Hong Kong,
India, Korea, Japan, Singapore, Australia, Republic of
China, Korea, Middle
East and European
countries.
RELATED/AFFILIATED COMPANY
Sagar Gems &
Jewellery Mfg. Co.,
Ltd.
Business Type :
Manufacturer of jewelry
products
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.
CREDIT
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
L/C at sight
or T/T.
BANKING
The Siam Commercial
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs approximately 135 office
staff and factory
workers.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
Factory
and warehouse are
located at 38 Gemopolis
Industrial Estate, 4th-5th Floor, IGS
Building, Sukhapiban 2 Rd., Dokmai,
Praves, Bangkok 10260.
Tel
: [66] 2727-0600-4,
Fax : [66]
2727-0605.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
2,000,000.
COMMENT
In general Thai jewelry producers use a lot of precious and
semi-precious stones from India. Most
of good quality stones at reasonable prices are from this country as well as largely
supplied by Indian company in local market. The subject manufactures the good
quality jewelry products
and exports to
the countries worldwide.
The subject reported
strong sales in 2010 which
was higher than
the previous year, as well
as its current
business performance is
continued expanding.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000 divided
into 20,000 shares
of Bht. 100 each.
The
capital was increased
later as following:
Bht.
10,000,000 on August
5, 1998
Bht.
25,000,000 on August
17, 1999
Bht.
35,000,000 on July
16, 2001
Bht.
50,000,000 on May
8, 2002
Bht.
60,000,000 on December
25, 2007
The
latest registered capital
was increased to
Bht. 60,000,000 divided into
600,000 shares of
Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at April
30, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Rajeev Kumar Kapadia Nationality: Indian Address : 322/27
Surawong Rd., Siphya,
Bangrak, Bangkok |
120,000 |
20.00 |
|
Akash Finance Holding
Ltd. Nationality: BVI Address : P.O. Box
3321 Tortola,
British Virgin Islands |
99,000 |
16.50 |
|
Ms. Sarika Saekow Nationality: Thai Address : 396
Somdejchaoprya Rd., Klongsan,
Bangkok |
90,000 |
15.00 |
|
Ms. Wannapa Pradit Nationality: Thai Address : 331
Moo 1, Cha-ouad, Nakornsrithammarat |
90,000 |
15.00 |
|
Mrs. Shilpa Rajeev Kapadia Nationality: Indian Address : 322/27
Surawong Rd., Siphya,
Bangrak,
Bangkok |
75,000 |
12.50 |
|
Mr. Chuchart Thomuan Nationality: Thai Address : 741
Sukhumvit 101/1 Rd.,
Bangchak,
Prakanong, Bangkok |
66,000 |
11.00 |
|
Ms. Isira Aoonharasmee Nationality: Thai Address : 208
Moo 5, Banpong, Prao,
Chiangmai |
60,000 |
10.00 |
Total Shareholders : 7
NAME OF AUDITOR
& CERTIFIED PUBLIC ACCOUNTANT NO. :
Mr. Valit Panpoonsap No.
4018
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalents |
1,645,585.12 |
2,719,352.34 |
|
Trade Accounts Receivable |
306,933,083.91 |
321,119,493.38 |
|
Inventories |
219,492,734.40 |
132,889,056.05 |
|
Refundable Value Added
Tax |
1,156,277.26 |
1,941,702.67 |
|
Cash at Bank
pledged as a
Collateral |
88,007,404.66 |
77,759,255.83 |
|
Other Current Assets
|
2,047,089.33 |
2,242,848.38 |
|
|
|
|
|
Total Current Assets
|
619,282,174.68 |
538,671,708.64 |
|
Fixed Assets |
34,474,188.98 |
31,407,958.96 |
|
Other Assets |
1,023,630.51 |
1,341,327.31 |
|
Total Assets |
654,779,994.17 |
571,420,994.91 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Bank Overdraft &
Loan from Bank |
300,830,207.44 |
297,055,265.71 |
|
Trade Accounts Payable |
191,258,482.66 |
112,286,210.11 |
|
Related Companies Payable |
- |
152,707.80 |
|
Advance from Customers |
- |
150,756.89 |
|
Accrued Expenses |
15,394,033.90 |
23,970,263.93 |
|
Current Portion of
Hire-purchase Contract Liabilities |
429,660.00 |
429,660.00 |
|
Accrued Income Tax |
2,194,882.09 |
3,676,627.52 |
|
Other Current Liabilities |
1,328,380.15 |
520,942.15 |
|
|
|
|
|
Total Current Liabilities |
511,435,646.24 |
438,242,434.11 |
|
Hire-purchase Contract
Liabilities, net |
1,107,705.00 |
1,537,365.00 |
|
Total Liabilities |
512,543,351.24 |
439,779,799.11 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 600,000 shares |
60,000,000.00 |
60,000,000.00 |
|
|
|
|
|
Capital Paid |
60,000,000.00 |
60,000,000.00 |
|
Retained
Earning-Unappropriated |
82,236,642.93 |
71,641,195.80 |
|
Total Shareholders' Equity |
142,236,642.93 |
131,641,195.80 |
|
Total Liabilities &
Shareholders' Equity |
654,779,994.17 |
571,420,994.91 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales |
983,375,449.19 |
607,419,955.62 |
|
Other Income |
8,530,905.10 |
2,326,641.19 |
|
Total Sales |
991,906,354.29 |
609,746,596.81 |
|
Expenses |
|
|
|
|
|
|
|
Change in Finished Goods and Work in Process |
[43,314,007.92] |
[3,612,872.18] |
|
Change in Raw Material and Material Supplies |
[43,289,670.43] |
12,786,502.19 |
|
Purchase Material &
Material Supplies |
901,823,683.04 |
455,530,636.23 |
|
Salary & Employees Benefit |
76,441,869.43 |
54,567,549.84 |
|
Depreciation & Amortization
|
5,208,299.78 |
6,578,657.86 |
|
Commission |
18,906,189.04 |
17,016,628.44 |
|
Other Expenses |
48,202,735.24 |
37,837,251.80 |
|
Total Expenses |
963,979,098.18 |
580,704,354.18 |
|
|
|
|
|
Profit Before Financial Costs &
Income Tax |
27,927,256.11 |
29,042,242.63 |
|
Financial Costs |
[12,686,613.19] |
[12,745,599.19] |
|
Income Tax |
[4,645,195.79] |
[4,888,114.82] |
|
|
|
|
|
Net Profit / [Loss] |
10,595,447.13 |
11,408,528.62 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.21 |
1.23 |
|
QUICK RATIO |
TIMES |
0.60 |
0.74 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
28.52 |
19.34 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.50 |
1.06 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
88.84 |
106.48 |
|
INVENTORY TURNOVER |
TIMES |
4.11 |
3.43 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
113.92 |
192.96 |
|
RECEIVABLES TURNOVER |
TIMES |
3.20 |
1.89 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
77.41 |
89.97 |
|
CASH CONVERSION CYCLE |
DAYS |
125.35 |
209.47 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
91.71 |
74.99 |
|
SELLING & ADMINISTRATION |
% |
8.30 |
10.07 |
|
INTEREST |
% |
1.29 |
2.10 |
|
GROSS PROFIT MARGIN |
% |
9.16 |
25.39 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.84 |
4.78 |
|
NET PROFIT MARGIN |
% |
1.08 |
1.88 |
|
RETURN ON EQUITY |
% |
7.45 |
8.67 |
|
RETURN ON ASSET |
% |
1.62 |
2.00 |
|
EARNING PER SHARE |
BAHT |
17.66 |
19.01 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.78 |
0.77 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.60 |
3.34 |
|
TIME INTEREST EARNED |
TIMES |
2.20 |
2.28 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
61.89 |
|
|
OPERATING PROFIT |
% |
(3.84) |
|
|
NET PROFIT |
% |
(7.13) |
|
|
FIXED ASSETS |
% |
9.76 |
|
|
TOTAL ASSETS |
% |
14.59 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
9.16 |
Deteriorated |
Industrial
Average |
23.83 |
|
Net Profit Margin |
1.08 |
Impressive |
Industrial
Average |
(13.70) |
|
Return on Assets |
1.62 |
Impressive |
Industrial
Average |
(12.36) |
|
Return on Equity |
7.45 |
Impressive |
Industrial
Average |
(4.46) |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from sales 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 9.16%. When
compared with the industry average, the ratio of the company was lower.
This indicated that company was
originated from the problems with control over its costs.
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 1.08%
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
1.62%, 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 7.45%, higher figure when compared with those of its average competitors in
the same industry, indicated that business was an efficient profits 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 RATIO
|
Current Ratio |
1.21 |
Deteriorated |
Industrial
Average |
34.64 |
|
Quick Ratio |
0.60 |
|
|
|
|
Cash Conversion Cycle |
125.35 |
|
|
|
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 1.21 times in 2010, decrease from 1.23 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 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 0.6 times in 2010,
decrease from 0.74 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 126 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.78 |
Acceptable |
Industrial
Average |
1.62 |
|
Debt to Equity Ratio |
3.60 |
Risky |
Industrial
Average |
2.37 |
|
Times Interest Earned |
2.20 |
Impressive |
Industrial
Average |
(73.53) |
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 2.21 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 0.78 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 Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
28.52 |
Deteriorated |
Industrial
Average |
261.32 |
|
Total Assets Turnover |
1.50 |
Satisfactory |
Industrial
Average |
1.85 |
|
Inventory Conversion Period |
88.84 |
|
|
|
|
Inventory Turnover |
4.11 |
Deteriorated |
Industrial
Average |
20.64 |
|
Receivables Conversion Period |
113.92 |
|
|
|
|
Receivables Turnover |
3.20 |
Deteriorated |
Industrial
Average |
24.00 |
|
Payables Conversion Period |
77.41 |
|
|
|
Trend of the average
competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
DIAMOND INDUSTRY –
INDIA
-
From time immemorial, India is well known in the world as the birthplace
for diamonds. It is difficult to trace the origin of diamonds but history
says that in the remote past, diamonds were mined only in India. Diamond
production in India can be traced back to almost 8th Century B.C.
India, in fact, remained undisputed leader till 18th Century
when Brazilian fields were discovered in 1725 followed by emergence of S.
Africa, Russia and Australia.
-
The achievement of the Indian diamond industry was possible only due to
combination of the manufacturing skills of the Indian workforce and the
untiring and unflagging efforts of the Indian diamantaires, supported by
progressive Government policies.
-
The area of study of family owned diamond businesses derives its importance
from the huge conglomerate of family run organizations which operate in the
diamond industry since many generations.
-
Some of the basic traits of family run business enterprises include
spirit of entrepreneurship, mutual trust lowers transaction costs, small,
nimble and quick to react, information as a source of advantage and
philanthropy.
-
Family owned diamond businesses need to improve on many fronts including
higher standard of corporate governance, long-term performance – focused
strategies, modern management and technology.
-
The diamond jewellery industry in India today may be more than Rs 60000
mil and is rated amongst the fastest growing in the world. Indi ranks
third in the world in domestic diamond consumption.
-
Utmost caution is to be exercised while dealing with some medium and
large diamond traders which are usually engaged in fictitious import – export,
inter-company transactions, financially assisted by banks. In the process,
several public sector banks lost several hundred million rupees. They mostly
diverted borrowed money for diamond business into real estate and capital
markets.
-
Excerpts from Times of India dated 30th October 2010 is as
under –
DIAMOND SAGA – DIRTY DOZEN STUCK WITH 2K CR DEBT
This could be the biggest credibility crisis
the Indian diamond industry has ever faced. Fifteen banks run the risk of
losing Rs 2000 crore lent to a dozen diamond firms in Surat. Until about two
months ago, they had not repaid these dues. Bankers believe many
diamantaires borrowed money during the economic downturn two years ago and
diverted funds to businesses like real estate and capital markets. Many of
themselves made money from these businesses but their diamond companies have
gone sick and declared insolvency.
-
Most of the money borrowed from the banks in the name of their diamond
business has been diverted in real estate and the share market. The banks are
not in a position to seize their properties because in many cases, these were
purchased in the name of their relatives and friends.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.36 |
|
UK Pound |
1 |
Rs.82.51 |
|
Euro |
1 |
Rs.68.99 |
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.