MIRA INFORM REPORT
|
Report Date : |
18.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
KAMAKHYA SILVER
COMPANY LIMITED |
|
|
|
|
Registered Office : |
82
Tanao Road, Taladyod,
Phranakhon, Bangkok 10200 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
3.08.2009 |
|
|
|
|
Com. Reg. No.: |
0105552078089 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer,
Distributor and Exporter of Diamonds, Gemstones
and Jewelry Products |
|
|
|
|
No. of Employees : |
3 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 – June 30th,
2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
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
KAMAKHYA SILVER
COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 82
TANAO ROAD, TALADYOD,
PHRANAKHON,
BANGKOK 10200,
THAILAND
TELEPHONE : [66] 2629-3858
FAX :
[66] 2629-3858
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2009
REGISTRATION
NO. : 0105552078089
TAX
ID NO. : 3033557688
CAPITAL REGISTERED : BHT. 4,000,000
CAPITAL PAID-UP : BHT.
4,000,000
SHAREHOLDER’S PROPORTION : THAI :
61%
INDIAN
: 39%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
RAJESH SINGLA, INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 3
LINES
OF BUSINESS : DIAMONDS, GEMSTONES
AND JEWELRY
PRODUCTS
IMPORTER, DISTRIBUTOR
AND EXPORTER
HISTORY
The
subject was established
on August 3,
2009 as a
private limited company
under the registered
name KAMAKHYA SILVER
COMPANY LIMITED., by Thai
and Indian groups,
with the business objective
to be engaged
in diamonds, gems and
jewelry trading business
to both domestic
and international markets. It currently employs
3 staff.
The
subject’s registered address is 82
Tanao Rd., Taladyod, Phranakhon, Bangkok 10200, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Rajesh Singla |
|
Indian |
56 |
|
Mr. Chet Bahadur Adhikari |
|
Indian |
34 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Rajesh Singla is
the Managing Director.
He is Indian
nationality with the
age of 56
years old.
Mr. Chet Bahadur Adhikari
is the Assistant
Managing Director.
He is Indian
nationality with the
age of 34
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing
various kinds of
diamonds and gemstones
for jewelry production
industry, as well
as exporting silver
and diamond jewelry.
PURCHASE
Diamonds
and gemstones are
imported from India,
while jewelry products
are purchased from
local suppliers.
SALES [LOCAL]
100% of the
products is sold
locally to manufacturers
and end-users.
EXPORT
Jewelry products are
exported to Hong
Kong and India.
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
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
T/T.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject currently employs
3 staff.
LOCATION DETAILS
The
premise is rented for
administrative office at
the heading address.
Premise is located
in commercial/residential area.
COMMENT
Decline
consumption in domestic
market has caused
to decrease subject’s
sales and the
impact from massive
floods in the
last quarter of 2011 had
pressured subject’s performance. However
sales in 2012
has been improved
at slow pace.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 4,000,000
divided into 40,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS LISTED WERE
[as at
April 27, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Rajesh Singla Nationality: Indian Address : 82
Tanao, Taladyod, Phranakhon, Bangkok |
15,000 |
37.50 |
|
Mrs. Montika Phueiam Nationality: Thai Address : 152
Soi Krungthep-Kreetha 7, Yaek
1,
Huamark, Bangkapi, Bangkok
|
4,880 |
12.20 |
|
Mrs. Wanna Phumeesuk Nationality: Thai Address : 130
Soi Krungthep-Kreetha 7, Yaek 1,
Huamark, Bangkapi, Bangkok
|
4,880 |
12.20 |
|
Ms. Nisachol Vejjana Nationality: Thai Address : 168
Soi Krungthep-Kreetha 7, Yaek 1, Huamark, Bangkapi,
Bangkok |
4,880 |
12.20 |
|
Mr. Sumit Klinmalai Nationality: Thai Address : 446
Krungthep-Kreetha Rd., Huamark,
Bangkapi, Bangkok |
4,880 |
12.20 |
|
Mrs. Laknara Pannoppha Nationality: Thai Address : 57/1
Moo 1, Singtothong, Bangnampriew,
Chachoengsao |
4,880 |
12.20 |
|
Mr. Chet Bahadur Adhikari Nationality: Indian Address : 82
Tanao, Taladyod, Phranakhon,
Bangkok |
600 |
1.50 |
Total Shareholders : 7
Share Structure
[as at
April 27, 2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
24,400 |
61.00 |
|
Foreign - Indian |
2 |
15,600 |
39.00 |
|
Total |
7 |
40,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Srisak Saksongmuang No.
7650
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
28,866.29 |
176,266.29 |
|
Trade Accounts & Other Receivable |
150,444.14 |
- |
|
Inventories |
4,510,542.21 |
5,630,026.65 |
|
Other Current Assets
|
523,013.34 |
497,094.31 |
|
|
|
|
|
Total Current Assets
|
5,212,865.98 |
6,303,387.25 |
|
Long-term Lending |
1,000,000.00 |
3,568,848.00 |
|
Fixed Assets |
1,361,345.47 |
69,286.38 |
|
Other Non-current Assets |
10,000.00 |
10,000.00 |
|
Total Assets |
7,584,211.45 |
9,951,521.63 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts Payable |
2,303,271.29 |
5,816,509.24 |
|
Current Portion of Lease Contract
Payable |
259,200.00 |
- |
|
Accrued Income Tax |
4,219.54 |
23,932.69 |
|
Other Current Liabilities |
26,264.10 |
19,508.87 |
|
|
|
|
|
Total Current Liabilities |
2,592,954.93 |
5,859,950.80 |
|
|
|
|
|
Lease Contract Payable,
Net |
603,200.00 |
- |
|
Total Liabilities |
3,196,154.93 |
5,859,950.80 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 40,000 shares |
4,000,000.00 |
4,000,000.00 |
|
|
|
|
|
Capital Paid |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning - Unappropriated |
388,056.52 |
91,570.83 |
|
Total Shareholders' Equity |
4,388,056.52 |
4,091,570.83 |
|
Total Liabilities & Shareholders' Equity |
7,584,211.45 |
9,951,521.63 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales |
11,124,521.96 |
8,208,854.76 |
|
Gain on Exchange Rate |
27,155.00 |
498,040.08 |
|
Other Income |
43,009.95 |
83,700.00 |
|
Total Revenues |
11,194,686.91 |
8,790,594.84 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
7,566,543.91 |
6,576,498.03 |
|
Selling Expenses |
1,577,367.57 |
137,849.04 |
|
Administrative Expenses |
1,718,950.20 |
1,768,831.76 |
|
Total Expenses |
10,862,861.68 |
8,483,178.83 |
|
|
|
|
|
Profit / Loss] before Financial Costs & Income Tax |
331,825.23 |
307,416.01 |
|
Financial Costs |
[8,620.00] |
[1,337.80] |
|
|
|
|
|
Profit / [Loss] before Income Tax |
323,205.23 |
306,078.21 |
|
Income Tax |
[26,719.54] |
[23,932.69] |
|
Net Profit / [Loss] |
296,485.69 |
282,145.52 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
2.01 |
1.08 |
|
QUICK RATIO |
TIMES |
0.07 |
0.03 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
8.17 |
118.48 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.47 |
0.82 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
217.58 |
312.47 |
|
INVENTORY TURNOVER |
TIMES |
1.68 |
1.17 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
4.94 |
- |
|
RECEIVABLES TURNOVER |
TIMES |
73.94 |
- |
|
PAYABLES CONVERSION PERIOD |
DAYS |
111.11 |
322.82 |
|
CASH CONVERSION CYCLE |
DAYS |
111.41 |
(10.35) |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
68.02 |
80.11 |
|
SELLING & ADMINISTRATION |
% |
29.63 |
23.23 |
|
INTEREST |
% |
0.08 |
0.02 |
|
GROSS PROFIT MARGIN |
% |
32.61 |
26.97 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.98 |
3.74 |
|
NET PROFIT MARGIN |
% |
2.67 |
3.44 |
|
RETURN ON EQUITY |
% |
6.76 |
6.90 |
|
RETURN ON ASSET |
% |
3.91 |
2.84 |
|
EARNING PER SHARE |
BAHT |
7.41 |
7.05 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.42 |
0.59 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.73 |
1.43 |
|
TIME INTEREST EARNED |
TIMES |
38.49 |
229.79 |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
35.52 |
|
|
OPERATING PROFIT |
% |
7.94 |
|
|
NET PROFIT |
% |
5.08 |
|
|
FIXED ASSETS |
% |
1,864.81 |
|
|
TOTAL ASSETS |
% |
(23.79) |
|
PROFITABILITY RATIO
|
Gross Profit Margin |
32.61 |
Impressive |
Industrial
Average |
9.66 |
|
Net Profit Margin |
2.67 |
Impressive |
Industrial
Average |
(0.20) |
|
Return on Assets |
3.91 |
Impressive |
Industrial
Average |
(0.27) |
|
Return on Equity |
6.76 |
Impressive |
Industrial
Average |
(0.72) |
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 32.61%. When
compared with the industry average, the ratio of the company was higher, this
indicated that company was more profitable than the same industry.
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 2.67%, 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
3.91%, 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 6.76%, 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 Uptrend
Return on Equity Stable
LIQUIDITY RATIO
|
Current Ratio |
2.01 |
Impressive |
Industrial
Average |
1.72 |
|
Quick Ratio |
0.07 |
|
|
|
|
Cash Conversion Cycle |
111.41 |
|
|
|
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 2.01 times in 2011, increased from 1.08 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 0.07 times in 2011,
increased from 0.03 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 112 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.42 |
Impressive |
Industrial
Average |
0.60 |
|
Debt to Equity Ratio |
0.73 |
Impressive |
Industrial
Average |
1.67 |
|
Times Interest Earned |
38.49 |
Impressive |
Industrial
Average |
0.63 |
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 38.5 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 0.42 less than 0.5, most of the company's
assets are financed through equity.
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 |
8.17 |
Satisfactory |
Industrial
Average |
10.73 |
|
Total Assets Turnover |
1.47 |
Satisfactory |
Industrial
Average |
1.47 |
|
Inventory Conversion Period |
217.58 |
|
|
|
|
Inventory Turnover |
1.68 |
Satisfactory |
Industrial
Average |
2.17 |
|
Receivables Conversion Period |
4.94 |
|
|
|
|
Receivables Turnover |
73.94 |
Impressive |
Industrial
Average |
3.31 |
|
Payables Conversion Period |
111.11 |
|
|
|
Trend of the average
competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
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.54.62 |
|
UK Pound |
1 |
Rs.88.40 |
|
Euro |
1 |
Rs.71.85 |
INFORMATION DETAILS
|
Report
Prepared by : |
NLM |
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.