MIRA INFORM REPORT
|
Report Date : |
10.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
SUKIRU
EXPORTS CO., LTD. |
|
|
|
|
Registered Office : |
Room 57b, 22nd Floor,
Bangkok Gems & Jewellery Tower,
322/57 Surawong Road, Siphaya, Bangrak,
Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2010 |
|
|
|
|
Date of Incorporation : |
04.07.1995 |
|
|
|
|
Com. Reg. No.: |
0105538078751 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Trading business of
diamonds and gemstones
|
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 – March 31st, 2011
|
Country Name |
Previous Rating (31.12.2010) |
Current Rating (31.03.2011) |
|
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
SUKIRU EXPORTS
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
57B, 22nd FLOOR,
BANGKOK GEMS &
JEWELLERY TOWER,
322/57 SURAWONG ROAD,
SIPHAYA, BANGRAK,
BANGKOK 10500
TELEPHONE : [66] 2681-7707,
2631-7737
FAX :
[66] 2631-7787
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1995
REGISTRATION
NO. : 0105538078751 [Former : 1587/ 2538]
CAPITAL REGISTERED : BHT. 6,000,000
CAPITAL PAID-UP : BHT.
6,000,000
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. KEYUR PRAVINKUMAR
SHAH, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 5
LINES
OF BUSINESS : DIAMONDS AND
GEMSTONES
TRADING BUSINESS
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established
on July 4,
1995 as a
private limited company
under the name
style SUKIRU EXPORTS CO.,
LTD., by Thai and
Indian groups, in order
to be engaged
in diamond and
gemstones trading business.
It currently employs
5 staff.
The subject’s registered address was initially
located at 297
Surawong Rd., Suriyawongse,
Bangrak, Bangkok 10500.
On July 18, 2006, it was relocated
to Room 57 B, 22nd Floor, Bangkok Gems & Jewellery Tower, 322/57 Surawong Rd., Siphya,
Bangrak, Bangkok 10500, and this
is the subject’s current operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Keyur Pravinkumar Shah |
|
Indian |
48 |
|
Mr. Giriraj Manharsinh Jadeja |
|
Indian |
41 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Keyur Pravinkumar Shah is
the Managing Director.
He is Indian
nationality with the
age of 48
years old.
BUSINESS OPERATIONS
The subject is
an international trading
company by importing,
distributing, exporting and
re-exporting of diamonds.
IMPORT
[COUNTRIES]
Most of the
products are imported
from India, and
Hong Kong, the
remaining is purchased
from local suppliers.
SALES
80% of the
products is sold locally
to traders and
manufacturers.
EXPORT
20% of the
products is also
exported and re-exported
to Hong Kong.
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
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.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
Kasikornbank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs 5
staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a prime
commercial area.
REMARK
MAXIMUM
CREDIT SHOULD BE
GRANTED AT US$
1,000,000.
COMMENT
Subject
was formed in 1995
as loose diamond
and gemstones trading
business. It reported significantly increased its
sales in 2010.
Strong consumption had
seen in the
year 2010 from domestic
market, while sales
in overseas market
remains uncertain.
FINANCIAL INFORMATION
The
capital was initially
registered at Bht. 2,000,000 divided
into 20,000 shares of
Bht. 100 each.
The
capital was increased
later as followed:
Bht. 3,000,000
on May 23,
2000
Bht. 4,000,000
on September 11,
2006
Bht. 6,000,000
on January 23,
2009
The
latest registered capital
was increased to
Bht. 6,000,000 divided into 60,000
shares of Bht.
100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at April
30, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Kiran Champaklal Bhansali Nationality: Indian Address : 322/57
Surawong Rd., Suriyawongse,
Bangrak, Bangkok |
8,000 |
13.33 |
|
Mr. Keyur Pravinkumar Shah Nationality: Indian Address : 322/57 Surawong Rd.,
Suriyawongse, Bangrak, Bangkok |
8,000 |
13.33 |
|
Mr. Giriraj Manharsinh Jadeja Nationality: Indian Address : 322/57
Surawong Rd., Siphya,
Bangrak, Bangkok |
6,800 |
11.33 |
|
Mr. Vipul Jayaitial Jhah Nationality: Indian Address : 322/57 Surawong Rd.,
Suriyawongse, Bangrak, Bangkok |
6,600 |
11.00 |
|
Mr. Suchart Chiamsakol Nationality: Thai Address : 63
Chan Rd., Tungwatdon,
Sathorn, Bangkok |
5,500 |
9.17 |
|
Ms. Kantaporn Chuangchit Nationality: Thai Address : 120 Chan
Rd., Tungwatdon, Sathorn,
Bangkok |
5,500 |
9.17 |
|
Ms. Nalinee Saepoo Nationality: Thai Address : 50
Charoenkrung 55 Rd.,
Yannawa, Sathorn, Bangkok |
5,200 |
8.67 |
|
Mr. Nithi Chiamsakol Nationality: Thai Address : 61/1
Chan Rd., Tungwatdon,
Sathorn, Bangkok |
5,000 |
8.33 |
|
Mr. Sommai Sathavorn Nationality: Thai Address : 65
Chan Rd., Tungwatdon,
Sathorn, Bangkok |
4,400 |
7.33 |
|
Ms. Panalin Mungmart Nationality: Thai Address : 222
Moo 3, T.
Pran, A. Khunharn,
Srisaket |
2,000 |
3.33 |
|
Ms. Sutanma Charngtaisong Nationality: Thai Address : 92
Moo 9, T. Panthong,
A. Saingan,
Kampaengpetch |
2,000 |
3.33 |
|
Ms. Wanvisa Chanunant Nationality: Thai Address : 39
Moo 1, T.
Nanung, A. Ponepisai,
Nongkhai |
1,000 |
1.68 |
Total Shareholders : 12
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Wattana Trikantha
No. 2399
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2010 &
2009 were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
|
|
Cash and Cash Equivalents |
1,455,473.89 |
566,255.28 |
|
Trade Accounts Receivable
|
41,569,114.64 |
28,473,987.54 |
|
Inventories |
51,423,216.79 |
21,911,013.30 |
|
Other Current Assets
|
139,070.55 |
193,426.12 |
|
Total Current Assets
|
94,586,875.87 |
51,144,682.24 |
|
|
|
|
|
Fixed Assets |
79,726.65 |
41,580.36 |
|
Other Assets |
185,379.24 |
184,444.66 |
|
Total Assets |
94,851,981.76 |
51,370,707.26 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
|
|
|
|
Trade Accounts Payable |
69,640,163.89 |
32,211,505.66 |
|
Accrued Income Tax |
1,175,076.62 |
523,271.14 |
|
Other Current Liabilities |
1,650,228.93 |
1,093,228.77 |
|
Total Current Liabilities |
72,465,469.44 |
33,828,005.57 |
|
Total Liabilities |
72,465,469.44 |
33,828,005.57 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 600,000 shares |
6,000,000.00 |
6,000,000.00 |
|
Capital Paid |
6,000,000.00 |
6,000,000.00 |
|
Retained Earning -
Unappropriated |
16,386,512.32 |
11,542,701.69 |
|
Total Shareholders' Equity |
22,386,512.32 |
17,542,701.69 |
|
Total Liabilities &
Shareholders' Equity |
94,851,981.76 |
51,370,707.26 |
PROFIT & LOSS ACCOUNT
|
Sale |
2010 |
2009 |
|
|
|
|
|
Sales Income |
333,554,892.32 |
135,300,991.76 |
|
Other Income |
7,045,264.23 |
1,215,870.79 |
|
Total Sales |
340,600,156.55 |
136,516,862.55 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
327,624,350.91 |
127,856,422.97 |
|
Selling Expenses |
31,377.29 |
29,415.80 |
|
Administrative Expenses |
5,714,353.55 |
5,141,607.11 |
|
Total Expenses |
333,370,081.75 |
133,027,445.88 |
|
Profit / [Loss] Before Financial Cost & Income Tax |
7,230,074.80 |
3,489,416.67 |
|
Financial Cost |
[303,087.55] |
[94,160.69] |
|
Profit / [Loss] Before Income
Tax |
6,926,987.25 |
3,395,255.98 |
|
Income Tax |
[2,083,176.62] |
[1,025,771.14] |
|
Net Profit / [Loss] |
4,843,810.63 |
2,369,484.84 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.31 |
1.51 |
|
QUICK RATIO |
TIMES |
0.59 |
0.86 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4,183.73 |
3,253.96 |
|
TOTAL ASSETS TURNOVER |
TIMES |
3.52 |
2.63 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
57.29 |
62.55 |
|
INVENTORY TURNOVER |
TIMES |
6.37 |
5.84 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
45.49 |
76.81 |
|
RECEIVABLES TURNOVER |
TIMES |
8.02 |
4.75 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
77.58 |
91.96 |
|
CASH CONVERSION CYCLE |
DAYS |
25.19 |
47.41 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
98.22 |
94.50 |
|
SELLING & ADMINISTRATION |
% |
1.72 |
3.82 |
|
INTEREST |
% |
0.09 |
0.07 |
|
GROSS PROFIT MARGIN |
% |
3.89 |
6.40 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.17 |
2.58 |
|
NET PROFIT MARGIN |
% |
1.45 |
1.75 |
|
RETURN ON EQUITY |
% |
21.64 |
13.51 |
|
RETURN ON ASSET |
% |
5.11 |
4.61 |
|
EARNING PER SHARE |
BAHT |
80.73 |
39.49 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.76 |
0.66 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.24 |
1.93 |
|
TIME INTEREST EARNED |
TIMES |
23.85 |
37.06 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
146.53 |
|
|
OPERATING PROFIT |
% |
107.20 |
|
|
NET PROFIT |
% |
104.42 |
|
|
FIXED ASSETS |
% |
91.74 |
|
|
TOTAL ASSETS |
% |
84.64 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
3.89 |
Deteriorated |
Industrial
Average |
26.57 |
|
Net Profit Margin |
1.45 |
Impressive |
Industrial
Average |
(37.90) |
|
Return on Assets |
5.11 |
Impressive |
Industrial
Average |
(6.13) |
|
Return on Equity |
21.64 |
Impressive |
Industrial
Average |
(6.26) |
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 3.89%. When compared with
the industry average, the ratio of the company was lower, 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 1.45%,
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 5.11%, 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 21.64%, 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 |
1.31 |
Deteriorated |
Industrial
Average |
60.43 |
|
Quick Ratio |
0.59 |
|
|
|
|
Cash Conversion Cycle |
25.19 |
|
|
|
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 1.31 times in 2010, decrease from 1.51 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 0.59 times in 2010,
decrease from 0.86 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 26 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.76 |
Impressive |
Industrial
Average |
0.86 |
|
Debt to Equity Ratio |
3.24 |
Risky |
Industrial
Average |
1.54 |
|
Times Interest Earned |
23.85 |
Deteriorated |
Industrial
Average |
105.90 |
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 23.86 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 0.76 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 Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
4,183.73 |
Deteriorated |
Industrial
Average |
75,551.94 |
|
Total Assets Turnover |
3.52 |
Impressive |
Industrial
Average |
1.47 |
|
Inventory Conversion Period |
57.29 |
|
|
|
|
Inventory Turnover |
6.37 |
Impressive |
Industrial
Average |
5.98 |
|
Receivables Conversion Period |
45.49 |
|
|
|
|
Receivables Turnover |
8.02 |
Acceptable |
Industrial
Average |
12.83 |
|
Payables Conversion Period |
77.58 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Downtrend
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.49.14 |
|
UK Pound |
1 |
Rs.75.97 |
|
Euro |
1 |
Rs.65.99 |
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.