MIRA INFORM
REPORT
|
Report Date : |
25.02.2011 |
IDENTIFICATION DETAILS
|
Name : |
FLAWLESS
CO., LTD. |
|
|
|
|
Registered Office : |
Room 1909-1911, 19th
Floor, Jewellery Trade
Center, 919/245-247, Silom
Road, Silom, Bangrak,
Bangkok 10500 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2009 |
|
|
|
|
Date of Incorporation : |
29.11.1985 |
|
|
|
|
Com. Reg. No.: |
0105528041715 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Exporter &
Distributor of diamonds
and precious stones |
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 : |
Satisfactory |
|
Payment
Behaviour : |
No Complaints |
|
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 – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
|
|
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
Company name
FLAWLESS
CO., LTD.
SUMMARY
BUSINESS ADDRESS : ROOM
1909-1911, 19th FLOOR,
919/245-247,
TELEPHONE : [66] 2630-0444-6, 2235-9664
FAX : [66] 2630-0443,
2237-8562
E-MAIL
ADDRESS : flawless@flawlesscompany.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1985
REGISTRATION
NO. : 0105528041715 [Former : 4171/2528]
CAPITAL REGISTERED : BHT.
90,000,000
CAPITAL PAID-UP : BHT.
90,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
POONAM CHAND KOTHARI,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 25
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
FAIR 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 25
staff.
The
subject’s registered address is
Room 1909-1910, 19th
Floor, Jewellery Trade Center,
919/245-246 Silom Rd.,
Silom, Bangrak, Bangkok 10500.
In
2010, its registered
address changed to
Room 1909-1911, 19th Floor,
Jewelry Trade Center,
919/245-247 Silom Rd.,
Silom, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sunil Kothari
|
|
Indian |
48 |
|
Mr. Alongkorn Bovonveerakij |
|
Thai |
58 |
|
Mr. Poonam Chand
Kothari |
|
Indian |
42 |
AUTHORIZED PERSON
Any 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 42
years old.
Mr. Sunil Kothari is
the Executive Director.
He is Indian
nationality with the
age of 48
years old.
Mr. Alongkorn Bovonveerakij is
the Executive Director.
He is Thai
nationality with the
age of 58
years old.
Mrs. Panvadee Bovonveerakij is
the Assistant Managing
Director.
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’s cutting
diamonds to
PURCHASE
Diamonds
and precious stones
are purchased from
both local and
overseas suppliers in
India, Belgium, Hong
Kong and South
Africa.
MAJOR SUPPLIERS
Flawless Diamond [
Concorde International Ltd. :
SALES [LOCAL]
80%
of the products
is sold locally
by wholesale to
local traders and
manufacturers.
EXPORT
20% of the
products is exported
to Hong Kong,
Japan, Indonesia, U.S.A.,
and European countries.
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 30-60
days.
Local
bills are paid
by cash or
on the credit
term of 30-60
days.
Imports
are by L/C
at sight or T/T
on negotiates term.
Exports
are against T/T.
BANKING
Bangkok Bank Public Co., Ltd.
[Head Office :
EMPLOYMENT
The
subject employs 25
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.
REMARK
CREDIT
OF US$ 500,000
AGAINST D/A TERMS
SHOULD BE IN
ORDER.
COMMENT
The
subject is a
leading supplier of
diamonds and precious
stones in local
market for many
years. However, the world’s
economy recession resulting
the domestic consumption of jewelry
products a significant
dropped.
Nevertheless, ongoing
stronger of the
Thai Baht becomes another
key challenge that
plays a vital
part for an
import business including
the subject in the year
2010.
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 16,000,000 on
October 25, 1995
Bht. 25,000,000
on March 14,
2006
Bht. 45,000,000
on June 29,
2007
Bht. 60,000,000
on June 5,
2008
Bht. 80,000,000
on October 10,
2008
Bht. 90,000,000
on March 4,
2009
The
latest registered capital was
increased to Bht. 90,000,000 divided
into 90,000 shares
of Bht. 1,000 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 27, 2010]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Sunil Kothari Nationality: Indian Address : |
26,000 |
28.89 |
|
Mr. Poonam Chand
Kothari Nationality: Indian Address : |
18,100 |
20.11 |
|
Mrs. Panwadee Bovonveerakij Nationality: Thai Address : 19/62 Moo 2,
Ladprao, |
13,000 |
14.44 |
|
Mr. Alongkorn Bovonveerakij Nationality: Thai Address : 19/62 Moo 2,
Ladprao, |
10,000 |
11.11 |
|
Ms. Aim-orn Sak-arpha Nationality: Thai Address : 59/17
Moo 4, Bangtalad,
Pakkred, Nonthaburi |
8,000 |
8.89 |
|
Ms. Suchanart Chokechaicharoen Nationality: Thai Address : 74/433
Ramkhamhaeng 180 Rd.,
Minburi, |
5,000 |
5.56 |
|
Mrs. Suree Wonganekkasem Nationality: Thai Address : Bangkhen, |
4,000 |
4.44 |
|
Mrs. Chotika Khantachawana Nationality: Thai Address : 315/10
Siriraj, Bangkoknoi, |
3,500 |
3.89 |
|
Ms. Arisaraporn Luewongsupakij Nationality: Thai Address : 16/13
Sukhumvit 56 Rd.,
Bangchak,
Prakanong, |
2,400 |
2.67 |
Total Shareholders : 9
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Aniruth Ngamrungkij
No. 3730
BALANCE SHEET [BAHT]
The latest financial figures published for December 31, 2009 & 2008 were:
ASSETS
|
Current Assets |
2009 |
2008 |
|
|
|
|
|
Cash and Cash Equivalents |
3,615,157.31 |
6,169,475.15 |
|
Trade Accounts Receivable |
103,515,446.24 |
150,934,376.00 |
|
Inventories |
166,600,794.71 |
174,400,907.84 |
|
Other Current Assets
|
696,925.94 |
1,645,583.87 |
|
Total Current Assets
|
274,428,324.20 |
333,150,342.86 |
|
|
|
|
|
Fixed Deposit |
2,859,531.58 |
2,146,905.66 |
|
Fixed Assets |
4,252,339.58 |
7,109,684.25 |
|
Total Assets |
281,540,195.36 |
342,406,932.77 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2009 |
2008 |
|
|
|
|
|
Bank Overdraft &
Loan from Bank |
69,173,323.22 |
89,615,855.79 |
|
Trade Accounts Payable |
103,196,676.05 |
159,170,088.61 |
|
Other Payable |
228,927.55 |
1,312,600.90 |
|
Current Portion of Hire-Purchase Payable |
74,175.78 |
387,957.55 |
|
Accrued Income Tax |
1,027,518.43 |
- |
|
Accrued Expenses |
1,197,502.48 |
547,873.93 |
|
Other Current Liabilities |
1,375,766.49 |
696,461.71 |
|
Total Current Liabilities |
176,273,890.00 |
251,730,838.49 |
|
Hire-Purchase Payable Net of
Current Portion |
- |
74,175.71 |
|
Total Liabilities |
176,273,890.00 |
251,805,014.20 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 1,000
par value authorized, issued
and fully paid share
capital 90,000 &
80,000 shares in 2009 & 2008 respectively |
90,000,000.00 |
80,000,000.00 |
|
Capital Paid |
90,000,000.00 |
80,000,000.00 |
|
Statutory Reserve |
9,000,000.00 |
8,000,000.00 |
|
Retained Earning -
Unappropriated |
6,266,305.36 |
2,601,918.57 |
|
Total Shareholders' Equity |
105,266,305.36 |
90,601,918.57 |
|
Total Liabilities & Shareholders' Equity |
281,540,195.36 |
342,406,932.77 |
PROFIT & LOSS ACCOUNT
|
|
2009 |
2008 |
|
|
|
|
|
Sales |
447,555,619.30 |
669,573,652.67 |
|
Gain on Exchange
Rate |
6,361,795.86 |
- |
|
Other Income |
661,409.91 |
280,304.60 |
|
Total Sales |
454,578,825.07 |
669,853,957.27 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
413,822,099.57 |
630,261,378.24 |
|
Selling Expenses |
9,933,759.64 |
11,649,721.25 |
|
Administrative Expenses |
19,687,302.76 |
16,133,045.60 |
|
Loss on Exchange
Rate |
- |
4,485,732.74 |
|
Total Expenses |
443,443,161.97 |
662,529,877.83 |
|
Profit / [Loss] Before Financial Cost & Income Tax |
11,135,663.10 |
7,324,079.44 |
|
Financial Cost |
[4,243,757.88] |
[6,964,787.95] |
|
Profit / [Loss] Before Income
Tax |
6,891,905.22 |
359,291.49 |
|
Income Tax |
[2,227,518.43] |
[430,644.18] |
|
Net Profit / [Loss] |
4,664,386.79 |
[71,352.69] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2009 |
2008 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.56 |
1.32 |
|
QUICK RATIO |
TIMES |
0.61 |
0.62 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
105.25 |
94.18 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.59 |
1.96 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
146.95 |
101.00 |
|
INVENTORY TURNOVER |
TIMES |
2.48 |
3.61 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
84.42 |
82.28 |
|
RECEIVABLES TURNOVER |
TIMES |
4.32 |
4.44 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
91.02 |
92.18 |
|
CASH CONVERSION CYCLE |
DAYS |
140.34 |
91.10 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
92.46 |
94.13 |
|
SELLING & ADMINISTRATION |
% |
6.62 |
4.15 |
|
INTEREST |
% |
0.95 |
1.04 |
|
GROSS PROFIT MARGIN |
% |
9.11 |
5.91 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.49 |
1.09 |
|
NET PROFIT MARGIN |
% |
1.04 |
(0.01) |
|
RETURN ON EQUITY |
% |
4.43 |
(0.08) |
|
RETURN ON ASSET |
% |
1.66 |
(0.02) |
|
EARNING PER SHARE |
BAHT |
51.83 |
(0.89) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.63 |
0.74 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.67 |
2.78 |
|
TIME INTEREST EARNED |
TIMES |
2.62 |
1.05 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(33.16) |
|
|
OPERATING PROFIT |
% |
52.04 |
|
|
NET PROFIT |
% |
6,637.09 |
|
|
FIXED ASSETS |
% |
(40.19) |
|
|
TOTAL ASSETS |
% |
(17.78) |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
9.11 |
Satisfactory |
Industrial Average |
10.62 |
|
Net Profit Margin |
1.04 |
Impressive |
Industrial Average |
(0.91) |
|
Return on Assets |
1.66 |
Impressive |
Industrial Average |
(1.16) |
|
Return on Equity |
4.43 |
Impressive |
Industrial Average |
(2.99) |
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 9.11%. 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 1.04%
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 is 1.66%,
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 is
4.43%, 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 RATIO
|
Current Ratio |
1.56 |
Satisfactory |
Industrial Average |
1.85 |
|
Quick Ratio |
0.61 |
|
|
|
|
Cash Conversion Cycle |
140.34 |
|
|
|
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 1.56 times in 2009, increase from 1.32 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 0.61 times in 2009,
decrease from 0.62 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 141 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.63 |
Impressive |
Industrial Average |
0.58 |
|
Debt to Equity Ratio |
1.67 |
Risky |
Industrial Average |
1.52 |
|
Times Interest Earned |
2.62 |
Impressive |
Industrial Average |
(0.13) |
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 stronger equity position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 2.63 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 0.63 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 |
105.25 |
Impressive |
Industrial Average |
7.78 |
|
Total Assets Turnover |
1.59 |
Impressive |
Industrial Average |
1.27 |
|
Inventory Conversion Period |
146.95 |
|
|
|
|
Inventory Turnover |
2.48 |
Impressive |
Industrial Average |
1.91 |
|
Receivables Conversion Period |
84.42 |
|
|
|
|
Receivables Turnover |
4.32 |
Impressive |
Industrial Average |
2.78 |
|
Payables Conversion Period |
91.02 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Downtrend
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.37 |
|
|
1 |
Rs.73.54 |
|
Euro |
1 |
Rs.62.39 |
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 |
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.