MIRA INFORM REPORT
|
Report Date : |
22.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
VIVA COLLECTION CO., LTD. |
|
|
|
|
Formerly Known As : |
KIRAN JEWELS CO.,
LTD |
|
|
|
|
Registered Office : |
41/13-14 Soi Silom 19,
Silom Road, Silom, Bangrak, Bangkok
10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2011 |
|
|
|
|
Date of Incorporation : |
11.08.2000 |
|
|
|
|
Com. Reg. No.: |
0105543075579 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer,
distributor and exporter of diamond
and jewelry products |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
|
|
|
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 – 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
VIVA COLLECTION
CO., LTD..
[FORMER : KIRAN JEWELS CO., LTD.]
SUMMARY
BUSINESS
ADDRESS : 41/13-14 SOI
SILOM 19, SILOM ROAD,
SILOM,
BANGRAK, BANGKOK
10500
TELEPHONE : [66] 2237-4767-8
FAX :
[66] 2236-4766
E-MAIL
ADDRESS : viva.collection@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2000
REGISTRATION
NO. : 0105543075579 [Former : 1166/ 2543]
CAPITAL REGISTERED : BHT. 25,000,000
CAPITAL PAID-UP : BHT.
25,000,000
SHAREHOLDER’S PROPORTION : FOREIGN :
100.00%
FISCAL YEAR CLOSING DATE : MARCH
31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. HITESH BABUBHAI
PATEL, INDIAN
MANAGING
DIRECTOR
NO.
OF STAFF : 7
LINES
OF BUSINESS : DIAMOND AND
JEWELRY PRODUCTS
IMPORTER, DISTRIBUTOR
AND EXPORTER
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 August 11,
2000 as a
private limited company under
the registered name “Milestone Impex
Co., Ltd.” by
Indian group, with
the objective to
engage in diamond
and jewelry trading
business.
On
June 7, 2004,
subject’s name was changed to
“Kiranmani Diamond Private
Co., Ltd.”. Its
name was changed
to “Kiran Exports
Co., Ltd.”, on
July 8, 2004,
“Kiran Jewels Co.,
Ltd.” on January
2, 2008, and
VIVA COLLECTION CO.,
LTD., on April
20, 2009. Subject
currently employs 7
staff.
The
subject’s registered address
was initially located
at 919/307 Silom
Rd., Silom, Bangrak,
Bangkok 10500.
In
2007, subject’s registered address
was relocated to
41/13-14 Soi Silom 19, Silom
Rd., Silom, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Hitesh Babubhai Patel |
|
Indian |
28 |
|
Mr. Riken Kumar Labhubhai
Bhimani |
|
Indian |
24 |
|
Mr. Hitesh Kumar Popatlal
Patel |
|
Indian |
39 |
|
Mr. Mayur Kumar Popatlal
Patela |
|
Indian |
29 |
AUTHORIZED
PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Hitesh Babubhai Patel is
the Managing Director.
He is Indian
nationality with the
age of 28
years old.
BUSINESS OPERATIONS
The subject is engaged in
trading business of
diamond and jewelry products, such
as earring, bangle,
rings, necklace and
diamond pengant. It
imports and distributes
diamond to local
market, as well
as exporting jewelry
and gemstone to
Hong Kong, Japan and
Europe.
PURCHASE
Diamonds
are imported from
India, Pakistan, South Africa
and Belgium, as
well as jewelry products
are purchased from
local manufacturers and
suppliers.
SALES
Diamonds are sold
locally by wholesale
to traders and
jewelry manufacturers.
EXPORT
Jewelry
and gemstones are
exported to Hong
Kong, Japan and
Europe.
MAJOR CUSTOMER
Kiran
Export [Hong Kong]
Co., Ltd. :
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.
EMPLOYMENT
The
subject employs 7
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$
800,000.
COMMENT
In general Thai jewelry producers use a lot of diamond from
India. Most of the quality diamond and precious stones at the reasonable prices are from
India as well as are largely supplied by Indian company in local market.
The
subject’s business performance
as of March
2011 was satisfactory
with an increase
in both sales
sale and net
profit comparing to
the same period
of 2010. Generally,
the subject is promising
and growing moderately.
However, the subject
has some impact
from a current
flood in Thailand
because some customers’
factories are located in
the flooding areas
so the factories
have to be
closed temporarily. But
the other local
customers are still
doing fine. There
is problem on its
export, the subject
can deliver the
goods normally.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 4,000,000 divided
into 40,000 shares of
Bht. 100 each.
The
capital was increased
later as following:
Bht. 6,000,000
on March 26,
2001
Bht. 12,000,000
on December 15,
2003
Bht. 25,000,000
on December 23,
2004
The
latest registered capital
was increased to
Bht. 25,000,000 divided into 250,000
shares of Bht.
100 each with
fully paid.
THE SHAREHOLDERS
LISTED WERE : [as at
July 29, 2011]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Hitesh Babubhai
Patel Nationality: Indian Address : 41/13-14
Silom 19 Rd.,
Silom, Bangrak, Bangkok |
97,333 |
38.93 |
|
Mr. Mayur Kumar
Popatlal Patela Nationality: Indian Address : 41/13-14
Silom 19 Rd.,
Silom, Bangrak, Bangkok |
97,333 |
38.93 |
|
Mrs. Alpaben Hitesh Kumar
Patel Nationality: Indian Address : 1867/124
Charoennakorn Rd., Klongsan,
Bangkok |
27,667 |
11.07 |
|
Mrs. Avanikaben Mayur Kumar
Patela Nationality: Indian Address : 1867/124
Charoennakorn Rd., Klongsan,
Bangkok |
27,667 |
11.07 |
Total Shareholders : 4
Share Structure [as
at July 29, 2011]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
4 |
250,000 |
100.00 |
|
Total |
4 |
250,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Bovornsit Sornsilp No.
6131
BALANCE SHEET [BAHT]
The
latest financial figures
published for March
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalent |
826,297.82 |
504,635.64 |
|
Trade Accounts Receivable |
63,076,610.46 |
43,566,707.43 |
|
Inventories |
96,129,692.04 |
44,749,819.88 |
|
Advance Payment |
1,603,331.14 |
198,000.00 |
|
Other Current Assets |
187,691.42 |
542,475.66 |
|
|
|
|
|
Total Current Assets
|
161,823,622.88 |
89,561,638.61 |
|
|
|
|
|
Fixed Assets |
1,159,252.03 |
747,324.98 |
|
Long-term Loan to Person or Related Company |
3,272,700.00 |
- |
|
Other Assets |
130,000.00 |
130,000.00 |
|
Total Assets |
166,385,574.91 |
90,438,963.59 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts & Notes
Payable |
133,225,110.30 |
64,256,322.58 |
|
Accrued Expenses |
4,587,717.51 |
932,370.47 |
|
Accrued Income Tax |
581,078.19 |
686,240.10 |
|
Other Current Liabilities |
515,125.50 |
54,313.54 |
|
|
|
|
|
Total Current Liabilities |
138,909,031.50 |
65,929,246.69 |
|
Total Liabilities |
138,909,031.50 |
65,929,246.69 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 250,000 shares |
25,000,000.00 |
25,000,000.00 |
|
|
|
|
|
Capital Paid |
25,000,000.00 |
25,000,000.00 |
|
Retained Earning-
Unappropriated |
2,476,543.41 |
[490,283.10] |
|
Total Shareholders' Equity |
27,476,543.41 |
24,509,716.90 |
|
Total Liabilities & Shareholders' Equity |
166,385,574.91 |
90,438,963.59 |
PROFIT & LOSS ACCOUNT
|
Sale |
2011 |
2010 |
|
|
|
|
|
Sales |
226,975,876.95 |
165,102,410.74 |
|
Other Income |
5,591,062.17 |
3,491,826.25 |
|
Total Sales |
232,566,939.12 |
168,594,236.99 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
212,801,951.98 |
153,993,842.84 |
|
Selling Expenses |
8,691,752.55 |
4,599,133.36 |
|
Administrative Expenses |
7,124,829.89 |
6,328,040.91 |
|
Total Expenses |
228,618,534.42 |
164,921,017.11 |
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income Tax |
3,948,404.70 |
3,673,219.88 |
|
Financial Cost |
- |
[837,742.29] |
|
Profit / [Loss] before Income
Tax |
3,948,404.70 |
2,835,477.59 |
|
Income Tax |
[981,578.19] |
[1,136,240.10] |
|
|
|
|
|
Net Profit / [Loss] |
2,966,826.51 |
1,699,237.49 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.16 |
1.36 |
|
QUICK RATIO |
TIMES |
0.46 |
0.67 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
195.80 |
220.92 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.36 |
1.83 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
164.88 |
106.07 |
|
INVENTORY TURNOVER |
TIMES |
2.21 |
3.44 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
101.43 |
96.32 |
|
RECEIVABLES TURNOVER |
TIMES |
3.60 |
3.79 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
228.51 |
152.30 |
|
CASH CONVERSION CYCLE |
DAYS |
37.81 |
50.08 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
93.76 |
93.27 |
|
SELLING & ADMINISTRATION |
% |
6.97 |
6.62 |
|
INTEREST |
% |
- |
0.51 |
|
GROSS PROFIT MARGIN |
% |
8.71 |
8.84 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.74 |
2.22 |
|
NET PROFIT MARGIN |
% |
1.31 |
1.03 |
|
RETURN ON EQUITY |
% |
10.80 |
6.93 |
|
RETURN ON ASSET |
% |
1.78 |
1.88 |
|
EARNING PER SHARE |
BAHT |
11.87 |
6.80 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.83 |
0.73 |
|
DEBT TO EQUITY RATIO |
TIMES |
5.06 |
2.69 |
|
TIME INTEREST EARNED |
TIMES |
- |
4.38 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
37.48 |
|
|
OPERATING PROFIT |
% |
7.49 |
|
|
NET PROFIT |
% |
74.60 |
|
|
FIXED ASSETS |
% |
55.12 |
|
|
TOTAL ASSETS |
% |
83.98 |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
8.71 |
Acceptable |
Industrial Average |
16.14 |
|
Net Profit Margin |
1.31 |
Impressive |
Industrial Average |
(0.70) |
|
Return on Assets |
1.78 |
Impressive |
Industrial Average |
(1.03) |
|
Return on Equity |
10.80 |
Impressive |
Industrial Average |
(2.73) |
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 8.71%. 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. Net Profit Margin ratio is
1.31%, 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
1.78%, 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 10.8%, 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 |
1.16 |
Deteriorated |
Industrial Average |
2.88 |
|
Quick Ratio |
0.46 |
|
|
|
|
Cash Conversion Cycle |
37.81 |
|
|
|
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 1.16 times in 2011, decrease from 1.36 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 0.46 times in 2011,
decrease from 0.67 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 38 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.83 |
Impressive |
Industrial Average |
0.96 |
|
Debt to Equity Ratio |
5.06 |
Risky |
Industrial Average |
2.60 |
|
Times Interest Earned |
- |
|
Industrial Average |
0.39 |
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 0.83 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 |
195.80 |
Impressive |
Industrial Average |
15.36 |
|
Total Assets Turnover |
1.36 |
Acceptable |
Industrial Average |
2.41 |
|
Inventory Conversion Period |
164.88 |
|
|
|
|
Inventory Turnover |
2.21 |
Acceptable |
Industrial Average |
3.78 |
|
Receivables Conversion Period |
101.43 |
|
|
|
|
Receivables Turnover |
3.60 |
Acceptable |
Industrial Average |
5.30 |
|
Payables Conversion Period |
228.51 |
|
|
|
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.50.07 |
|
UK Pound |
1 |
Rs.79.16 |
|
Euro |
1 |
Rs.69.04 |
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.