MIRA INFORM REPORT
|
Report Date : |
15.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
LITHOS
CO., LTD. |
|
|
|
|
Registered Office : |
123/15-16 Nonsee Road, Chongnonsi, Yannawa, Bangkok 10120 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
11.05.2000 |
|
|
|
|
Com. Reg. No.: |
0105543045017 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Design And Manufacturing Various
Kinds of Diamond With Gold
And Platinum Jewelry
Products, Including Chain,
Necklace, Bracelet, Pin,
Ring, Pendant, Earrings
And Etc |
|
|
|
|
No. of Employees : |
71 employees |
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, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
thailand - ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand enjoyed solid growth from 2000 to 2007 - averaging more than 4% per year - as it recovered from the Asian financial crisis of 1997-98. Thai exports - mostly machinery and electronic components, agricultural commodities, and jewelry - continue to drive the economy, accounting for more than half of GDP. The global financial crisis of 2008-09 severely cut Thailand's exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. In 2010, Thailand's economy expanded 7.8%, its fastest pace since 1995, as exports rebounded from their depressed 2009 level. Steady economic growth at just below 4% during the first three quarters of 2011 was interrupted by historic flooding in October and November in the industrial areas north of Bangkok, crippling the manufacturing sector and leading to a revised growth rate of only 0.1% for the year. The industrial sector is poised to recover from the second quarter of 2012 onward, however, and the government anticipates the economy will probably grow between 5.5 and 6.5% for 2012, while private sector forecasts range between 3.8% and 5.7%.
|
Source : CIA |
Company
name
LITHOS CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 123/15-16 NONSEE
ROAD, CHONGNONSI,
YANNAWA, BANGKOK
10120, THAILAND
TELEPHONE : [66] 2681-2189-91
FAX :
[66] 2681-2187
E-MAIL
ADDRESS : lithos@loxinfo.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2000
REGISTRATION
NO. : 0105543045017 [Former : 679/2543]
TAX
ID NO. : 3030111456
CAPITAL REGISTERED : BHT. 168,700,000
CAPITAL PAID-UP : BHT.
168,700,000
SHAREHOLDER’S PROPORTION : FOREIGN :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. PIERRE NAOUM
NASSIF, LEBANESE
MANAGING DIRECTOR
NO.
OF STAFF : 71
LINES
OF BUSINESS : JEWELRY PRODUCTS
MANUFACTURER 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 May 11,
2000 as a
private limited company under
the name style
LITHOS CO., LTD.,
by a multi-national groups,
and initially was
a subsidiary of
Shine Enterprises Ltd.
in Cyprus. Its
business objective is
to manufacture and
market jewelry products
to international markets.
On December 15,
2010, the subject
became to be a
subsidiary of Greenson
Holding Pte. Ltd.,
in Singapore. It
currently employs 71
staff.
The
subject’s registered and
business address were initially
located at 99/470-471
Narathiwas Ratchanakarin Rd., Chongnonsi, Yannawa,
Bangkok 10120.
In
2008, subject’s registered
address was relocated
to 123/15-16 Nonsee Rd., Chongnonsi,
Yannawa, Bangkok 10120,
and this is
the subject’s current
operation address.
THE
BOARD OF DIRECTOR
Mr. Pierre Naoum
Nassif
AUTHORIZED
PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Pierre Naoum Nassif
is the Managing
Director.
He is Lebanese
nationality with the
age of 52
years old.
Mr. Elic Naoum Nassif
is the Production
Manager.
He is Lebanese
nationality.
Ms. Kulwadee Kornkasem is
the Office Manager.
She is Thai
nationality.
BUSINESS
OPERATIONS
The subject is
engaged in design
and manufacturing various
kinds of diamond with gold
and platinum jewelry
products, including chain,
necklace, bracelet, pin,
ring, pendant, earrings
and etc.
PURCHASE
Raw materials such
as diamond and
gemstones as well
as accessories are
purchased from suppliers
both local and
overseas, such as
India, Hong Kong,
Belgium and Russia.
EXPORT
100% of the
products is exported
to customers in
Japan, Hong Kong,
other Asia, Middle
East and European
countries.
PARENT COMPANY
Greenson Holding Pte.
Ltd.
Business Address : 230
Orchard Rd., 10-23
Faber House, Singapore
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
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
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs 71
staff.
LOCATION
DETAILS
The
premise is owned
for administrative office,
factory and warehouse
at the heading
address. Premise is
located in commercial/residential area.
COMMENT
The
subject was formed
in 2000 as
a manufacturer and
exporter of jewelry
products. The subject
posted its sales
revenue in 2011 lower than
2010 due to market
slowdown in European
countries.
While
market of jewelry
products in Middle
East remains upbeat. It is
estimated that overall
jewelry industry would
grow steadily in
the year 2012.
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 February 21,
2002
Bht. 20,000,000
on July 26,
2002
Bht. 30,000,000
on February 4,
2003
Bht. 34,000,000
on December 1,
2004
Bht. 54,000,000
on September 23,
2008
Bht. 168,700,000
on December 28,
2010
The latest
registered capital was
increased to Bht. 168,700,000 divided
into 1,687,000 shares
of Bht. 100
each with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 29, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Greenson Holding Pte.
Ltd. Nationality: Singaporean Address : 230
Orchard Rd., 10-23
Faber House, Singapore |
1,147,000 |
67.99 |
|
Shine Enterprises Ltd. Nationality: Cyprus Address : Marian,
Lazana, Cyprus |
353,500 |
20.95 |
|
Mr. Pierre Naoum Nassif Nationality: Lebanese Address : 123/15
Nonsee Rd., Chongnonsi, Yannawa,
Bangkok |
184,000 |
10.91 |
|
Mr. Karim Kuri Nationality: American Address : 9
Reimile El Maten,
Beirut, Lebanon |
500 |
|
|
Mrs. Mona Hillani Nationality: Lebanese Address : 9
Reimile El Maten,
Beirut, Lebanon |
500 |
|
|
Mr. Eily Naoum Nassif Nationality: Lebanese Address : 9
Reimile El Maten,
Beirut, Lebanon |
500 |
= 0.15 |
|
Ms. Tracy Pierre Nassif Nationality: Lebanese Address : 9
Reimile El Maten,
Beirut, Lebanon |
500 |
|
|
Ms. Tiffany Pierre Nassif Nationality: Lebanese Address : 9
Reimile El Maten,
Beirut, Lebanon |
500 |
|
Total Shareholders : 8
Share Structure [as
at April 29,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
8 |
1,687,000 |
100.00 |
|
Total |
8 |
1,687,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Jarin Limpachote No.
1983
BALANCE
SHEET [BAHT]
The latest financial
figures published for
December 31, 2011
& 2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
1,003,883.85 |
5,274,425.34 |
|
Trade Accounts &
Other Receivable |
116,917,458.99 |
111,628,372.88 |
|
Inventories |
250,512,844.10 |
147,521,034.42 |
|
Other Current Assets
|
1,504,059.72 |
1,849,127.46 |
|
Total Current Assets
|
369,938,246.66 |
266,272,960.10 |
|
|
|
|
|
Fixed Assets |
15,393,442.92 |
16,911,112.75 |
|
Total Assets |
385,331,689.58 |
283,184,072.85 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts & Notes Payable |
184,275,879.89 |
67,715,881.32 |
|
Accrued Income Tax |
575,139.93 |
583,543.69 |
|
Other Current Liabilities |
697,537.36 |
719,508.61 |
|
Total Current Liabilities |
185,548,557.18 |
69,018,933.62 |
|
Long-term Loan |
23,760,145.66 |
39,484,145.66 |
|
Total Liabilities |
209,308,702.84 |
108,503,079.28 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 1,687,000 shares
|
168,700,000.00 |
168,700,000.00 |
|
Capital Paid |
168,700,000.00 |
168,700,000.00 |
|
Retained Earning -
Unappropriated |
7,322,986.74 |
5,980,993.57 |
|
Total Shareholders' Equity |
176,022,986.74 |
174,680,993.57 |
|
Total Liabilities & Shareholders' Equity |
385,331,689.58 |
283,184,072.85 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales Income |
136,690,423.95 |
144,984,568.70 |
|
Other Income |
985,044.21 |
860,227.84 |
|
Total Revenues |
137,675,468.16 |
145,844,796.54 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
125,640,514.44 |
132,481,364.45 |
|
Selling Expenses |
1,887,007.39 |
1,175,126.15 |
|
Administrative Expenses |
2,924,599.20 |
2,924,802.50 |
|
Other Expenses |
3,309,038.84 |
3,661,495.64 |
|
Loss on Exchange Rate |
1,997,175.19 |
3,660,549.02 |
|
Total Expenses |
135,758,335.06 |
143,903,337.76 |
|
Profit / [Loss] before Income
Tax |
1,917,133.10 |
1,941,458.78 |
|
Income Tax |
[575,139.93] |
[583,543.69] |
|
Net Profit / [Loss] |
1,341,993.17 |
1,357,915.09 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.99 |
3.86 |
|
QUICK RATIO |
TIMES |
0.64 |
1.69 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
8.88 |
8.57 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.35 |
0.51 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
727.77 |
406.44 |
|
INVENTORY TURNOVER |
TIMES |
0.50 |
0.90 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
312.20 |
281.03 |
|
RECEIVABLES TURNOVER |
TIMES |
1.17 |
1.30 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
535.34 |
186.56 |
|
CASH CONVERSION CYCLE |
DAYS |
504.63 |
500.90 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
91.92 |
91.38 |
|
SELLING & ADMINISTRATION |
% |
3.52 |
2.83 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
8.80 |
9.22 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.40 |
1.34 |
|
NET PROFIT MARGIN |
% |
0.98 |
0.94 |
|
RETURN ON EQUITY |
% |
0.76 |
0.78 |
|
RETURN ON ASSET |
% |
0.35 |
0.48 |
|
EARNING PER SHARE |
BAHT |
0.80 |
0.80 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.54 |
0.38 |
|
DEBT TO EQUITY RATIO |
TIMES |
1.19 |
0.62 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
(5.72) |
|
|
OPERATING PROFIT |
% |
(1.25) |
|
|
NET PROFIT |
% |
(1.17) |
|
|
FIXED ASSETS |
% |
(8.97) |
|
|
TOTAL ASSETS |
% |
36.07 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.80 |
Acceptable |
Industrial
Average |
15.83 |
|
Net Profit Margin |
0.98 |
Impressive |
Industrial
Average |
0.22 |
|
Return on Assets |
0.35 |
Impressive |
Industrial Average |
0.24 |
|
Return on Equity |
0.76 |
Impressive |
Industrial
Average |
0.39 |
Gross Profit Margin used to assess a firm's financial health by
revealing the proportion of money left over from revenues 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 8.8%. 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 0.98%, 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 0.35%, 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 0.76%, 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 |
1.99 |
Impressive |
Industrial
Average |
1.69 |
|
Quick Ratio |
0.64 |
|
|
|
|
Cash Conversion Cycle |
504.63 |
|
|
|
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 1.99 times in 2011, decreased from 3.86 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 0.64 times in 2011,
decreased from 1.69 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 505 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.54 |
Impressive |
Industrial Average |
0.56 |
|
Debt to Equity Ratio |
1.19 |
Acceptable |
Industrial Average |
1.31 |
|
Times Interest Earned |
- |
|
Industrial Average |
0.96 |
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 0.54 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 Downtrend
Times Interest Earned Downtrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
8.88 |
Impressive |
Industrial
Average |
4.89 |
|
Total Assets Turnover |
0.35 |
Deteriorated |
Industrial
Average |
1.36 |
|
Inventory Conversion Period |
727.77 |
|
|
|
|
Inventory Turnover |
0.50 |
Deteriorated |
Industrial
Average |
2.04 |
|
Receivables Conversion Period |
312.20 |
|
|
|
|
Receivables Turnover |
1.17 |
Deteriorated |
Industrial
Average |
3.46 |
|
Payables Conversion Period |
535.34 |
|
|
|
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
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.54.39 |
|
UK Pound |
1 |
Rs.87.78 |
|
Euro |
1 |
Rs.71.29 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.