MIRA
INFORM REPORT
|
Report Date : |
22.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
SUIHIANG
JEWELLERY CO., LTD. |
|
|
|
|
Registered Office : |
40 Gemopolis Industrial
Estate, Soi 31, Sukhapiban 2
Road, Dokmai, Praves, Bangkok 10250 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
26.07.2002 |
|
|
|
|
Com. Reg. No.: |
0105545076637 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, distributor and
exporter of gold jewelry products |
|
|
|
|
No. of Employees : |
26 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
SUIHIANG JEWELLERY CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 40
GEMOPOLIS INDUSTRIAL ESTATE,
SOI 31,
SUKHAPIBAN 2
ROAD, DOKMAI, PRAVES,
BANGKOK 10250,
THAILAND
TELEPHONE : [66] 2727-0519-21, 084 651-4398
FAX :
[66] 2727-0522
E-MAIL
ADDRESS : suihiangjewellery@yahoo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2002
REGISTRATION
NO. : 0105545076637
TAX
ID NO. : 3030627032
CAPITAL REGISTERED : BHT. 30,000,000
CAPITAL PAID-UP : BHT.
30,000,000
SHAREHOLDER’S PROPORTION : THAI :
51%
INDIAN : 49%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. SAILESH KUMAR
KARSANBHAI BHIMANI,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 26
LINES
OF BUSINESS : GOLD
JEWELRY PRODUCTS
MANUFACTURER, 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 July 26,
2002 as a
private limited company under
the name style
SUIHIANG JEWELLERY CO.,
LTD., by Thai
and Indian groups,
with the business
objective to provide
manufacturing service various
kinds of gold
and jewelry products
to both domestic
and oversea markets.
It currently employs
26 staff.
The
subject’s registered address
is 40 Gemopolis
Industrial Estate, Soi
31, Sukhapiban 2
Rd., Dokmai, Praves,
Bangkok 10250, and
this is the
subject’s current operation
address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Sailesh Kumar Karsanbhai
Bhimani |
|
Indian |
35 |
|
Mrs. Shilpa Kumari Sailesh
Kumar Bhimani |
|
Indian |
34 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Sailesh Kumar Karsanbhai
Bhimani is the
Managing Director.
He is Indian
nationality with the
age of 35 years
old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
service various kinds
of 14k, 18k
gold jewelry with
diamonds and gemstones,
e.g. ring, earring,
pin, bangle and
bracelet, cufflink, necklace
and etc., according to
customer’s requirement and
brands.
PURCHASE
Raw materials and components are purchased from
suppliers in both domestic and
overseas, mainly India,
Hong Kong, South
Africa and U.S.A.
SALES/SERVICES
90% of
the products is
exported to U.S.A.,
Singapore, Hong Kong,
Republic of China,
Japan, Korea, Australia,
and many countries
in Middle East
and European region,
and the remaining
10% is sold
locally.
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 and services
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
Kasikornbank Public Co.,
Ltd.
Bank of Ayudhya
Public Co., Ltd.
EMPLOYMENT
The
subject employs 26
staff.
LOCATION
DETAILS
The premise
is owned for
administrative office and
factory at the
heading address. Premise
is located in
commercial/residential area.
COMMENT
The
subject was formed in
2002 as a
manufacturing service and exporting
of fine jewelry
products. The subject has
expanded its customer
base in both
local and overseas
markets. This has proven the
quality of service and reputation in
the international market.
However,
revenue level in
2011 was reported
higher than the previous year,
but slow market
growth has seen
in the recent months
due to continuous rising
cost of raw
materials, operating expenses
and slow consumption.
Subject’s performance is
likely to grow
at slow pace
this year.
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 follows:
Bht. 25,000,000
on March 31,
2005
Bht. 30,000,000
on December 29,
2008
The
latest registered capital
was increased to
Bht. 30,000,000 divided into
300,000 shares of
Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Sailesh Kumar Karsanbhai
Bhimani Nationality: Indian Address : 72
Miba Naka Sosai
Butnivaty,
Waracha Rd., Suraj,
India |
87,000 |
29.00 |
|
Mrs. Mon-anong Pongkeratikarn Nationality: Thai Address : 11
Soi Sutthiporn, Dindaeng,
Bangkok |
33,000 |
11.00 |
|
Mrs. Shilpa Kumari Sailesh
Kumar Bhimani Nationality: Indian Address : 72
Miba Naka Sosai
Butnivaty,
Waracha Rd., Suraj,
India |
30,000 |
10.00 |
|
Ms. Naowarat Aoonrue Nationality: Thai Address : 151/38
Moo 2, Thungkru,
Bangkok |
30,000 |
10.00 |
|
Ms. Nadda Sukanthong Nationality: Thai Address : 83/2
Moo 16, Jun,
Payao |
30,000 |
10.00 |
|
Mr. Narong Kongthon Nationality: Thai Address : 134
Sukhumvit Rd., Klongtonnua, Wattana, Bangkok |
30,000 |
10.00 |
|
Mr. Sathaporn Banterngkul Nationality: Thai Address : 54
Moo 7, Nayom,
Muang, Amnartcharoen |
30,000 |
10.00 |
|
Mr. Beehagay Kumar Bholabhai
Patel Nationality: Indian Address : 12
Nani Naka Sosai
Butnivaty, A.K. Rd.,
Suraj, India |
30,000 |
10.00 |
Total Shareholders : 8
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
5 |
153,000 |
51.00 |
|
Foreign - Indian |
3 |
147,000 |
49.00 |
|
Total |
8 |
300,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Anusorn Kwanmingtrakul No. 6760
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
118,304.45 |
153,343.08 |
|
Trade Accounts & Other Receivable |
43,569,332.71 |
15,214,453.60 |
|
Inventories |
165,358,346.41 |
111,936,852.51 |
|
Total Current Assets
|
209,045,983.57 |
127,304,649.19 |
|
|
|
|
|
Fixed Assets |
1,224,006.79 |
1,540,657.63 |
|
Other Non-current Assets |
112,000.00 |
112,000.00 |
|
Total Assets |
210,381,990.36 |
128,957,306.82 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts & Other Payable |
138,728,009.04 |
53,769,069.81 |
|
Deposit Received for Goods |
4,717,875.00 |
- |
|
Accrued Income Tax |
188,573.73 |
359,089.21 |
|
Total Current Liabilities |
143,634,457.77 |
54,128,159.02 |
|
Long-term Loan from Person or Related Company |
33,670,365.96 |
42,580,650.00 |
|
Total Liabilities |
177,304,823.73 |
96,708,809.02 |
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
Share capital : Baht 100
value authorized, issued
and fully paid share
capital 300,000 shares |
30,000,000.00 |
30,000,000.00 |
|
Capital Paid |
30,000,000.00 |
30,000,000.00 |
|
Retained Earning -
Unappropriated |
3,077,166.63 |
2,248,497.80 |
|
Total Shareholders' Equity |
33,077,166.63 |
32,248,497.80 |
|
Total Liabilities & Shareholders'
Equity |
210,381,990.36 |
128,957,306.82 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales Income |
114,064,955.68 |
90,691,710.85 |
|
Other Income |
228,418.56 |
498,303.91 |
|
Total Revenues |
114,293,374.24 |
91,190,014.76 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
103,417,729.53 |
83,190,090.19 |
|
Selling Expenses |
2,771,432.06 |
3,792,001.18 |
|
Administrative Expenses |
1,939,596.86 |
2,578,596.82 |
|
Other Expenses |
4,390,883.35 |
- |
|
Total Expenses |
112,519,641.80 |
89,560,688.19 |
|
Profit / [Loss] Before Financial Cost & Income Tax |
1,773,732.44 |
1,629,326.57 |
|
Interest Expenses |
[6.58] |
- |
|
Profit / [Loss] Before Income Tax |
1,773,725.86 |
1,629,326.57 |
|
Income Tax |
[533,573.73] |
[546,589.21] |
|
Net Profit / [Loss] |
1,240,152.13 |
1,082,737.36 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.46 |
2.35 |
|
QUICK RATIO |
TIMES |
0.30 |
0.28 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
93.19 |
58.87 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.54 |
0.70 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
583.61 |
491.13 |
|
INVENTORY TURNOVER |
TIMES |
0.63 |
0.74 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
139.42 |
61.23 |
|
RECEIVABLES TURNOVER |
TIMES |
2.62 |
5.96 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
489.62 |
235.91 |
|
CASH CONVERSION CYCLE |
DAYS |
233.41 |
316.45 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
90.67 |
91.73 |
|
SELLING & ADMINISTRATION |
% |
4.13 |
7.02 |
|
INTEREST |
% |
0.00 |
- |
|
GROSS PROFIT MARGIN |
% |
9.53 |
8.82 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.56 |
1.80 |
|
NET PROFIT MARGIN |
% |
1.09 |
1.19 |
|
RETURN ON EQUITY |
% |
3.75 |
3.36 |
|
RETURN ON ASSET |
% |
0.59 |
0.84 |
|
EARNING PER SHARE |
BAHT |
4.13 |
3.61 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.84 |
0.75 |
|
DEBT TO EQUITY RATIO |
TIMES |
5.36 |
3.00 |
|
TIME INTEREST EARNED |
TIMES |
269,564.20 |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
25.77 |
|
|
OPERATING PROFIT |
% |
8.86 |
|
|
NET PROFIT |
% |
14.54 |
|
|
FIXED ASSETS |
% |
(20.55) |
|
|
TOTAL ASSETS |
% |
63.14 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
9.53 |
Acceptable |
Industrial
Average |
15.83 |
|
Net Profit Margin |
1.09 |
Impressive |
Industrial
Average |
0.22 |
|
Return on Assets |
0.59 |
Impressive |
Industrial
Average |
0.24 |
|
Return on Equity |
3.75 |
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 9.53%. 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 1.09%,
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
0.59%, 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 3.75%, 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 |
1.46 |
Satisfactory |
Industrial
Average |
1.69 |
|
Quick Ratio |
0.30 |
|
|
|
|
Cash Conversion Cycle |
233.41 |
|
|
|
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 1.46 times in 2011, decreased from 2.35 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 0.3 times in 2011,
increased from 0.28 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 234 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.84 |
Acceptable |
Industrial
Average |
0.56 |
|
Debt to Equity Ratio |
5.36 |
Risky |
Industrial
Average |
1.31 |
|
Times Interest Earned |
269,564.20 |
Impressive |
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.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 269564.21 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 0.84 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 |
93.19 |
Impressive |
Industrial
Average |
4.89 |
|
Total Assets Turnover |
0.54 |
Deteriorated |
Industrial
Average |
1.36 |
|
Inventory Conversion Period |
583.61 |
|
|
|
|
Inventory Turnover |
0.63 |
Deteriorated |
Industrial
Average |
2.04 |
|
Receivables Conversion Period |
139.42 |
|
|
|
|
Receivables Turnover |
2.62 |
Satisfactory |
Industrial
Average |
3.46 |
|
Payables Conversion Period |
489.62 |
|
|
|
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.55.07 |
|
UK Pound |
1 |
Rs.89.54 |
|
Euro |
1 |
Rs.72.77 |
INFORMATION DETAILS
|
Report Prepared
by : |
MNL |
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.