MIRA INFORM REPORT
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Report Date : |
17.10.2012 |
IDENTIFICATION DETAILS
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Name : |
SHWETA ENTERPRISES CO., LTD. |
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Registered Office : |
Room No. 159e, 19th Floor, Gems Tower, 1249/159 Charoenkrung Road, Suriyawongse, Bangrak, Bangkok 10500 |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2010 |
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Date of Incorporation : |
15.01.2004 |
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Com. Reg. No.: |
0105547006890 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer and Distributor of Diamonds and Gemstones |
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No. of Employees : |
2 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Status : |
Small Company |
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Payment Behaviour : |
Slow |
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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 (31.03.2011) |
Current Rating (30.06.2012) |
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Thailand |
B1 |
B1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
SHWETA
ENTERPRISES CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
NO. 159E, 19th FLOOR,
GEMS TOWER,
1249/159 CHAROENKRUNG
ROAD, SURIYAWONGSE,
BANGRAK, BANGKOK
10500, THAILAND
TELEPHONE : [66] 081
833-3652
FAX
: [66] 02
267-4559
E-MAIL
ADDRESS : riteshndoshi@hotmail.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2004
REGISTRATION
NO. : 0105547006890 [Former
: 0108454701363]
TAX
ID NO. : 3031227316
CAPITAL REGISTERED : BHT. 2,000,000
CAPITAL PAID-UP : BHT.
2,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. RITESH NAGINDAS
DOSHI, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 2
LINES
OF BUSINESS : DIAMONDS AND
GEMSTONES
IMPORTER AND
DISTRIBUTOR
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
FAIR PERFORMANCE
HISTORY
The
subject was established on January
15, 2004 as a private
limited company under the
name style SHWETA
ENTERPRISES CO., LTD.,
by Thai and Indian
groups, with the business
objective to import and
distribute diamonds and
gemstones for jewelry
industry. It currently
employs 2 staff.
The
subject’s registered address was
initially located at Unit
301, 3rd Floor,
T.D. Building, 14-16 Mahaesak
Rd., Surawongse, Bangrak,
Bangkok 10500.
On
May 3, 2012,
its registered address
was relocated to
Room No. 159E, 19th Floor,
Gems Tower, 1249/159
Charoenkrung Rd., Suriyawongse,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD OF DIRECTOR
Mr. Ritesh Nagindas Doshi
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Ritesh Nagindas Doshi
is the Managing
Director.
He is Indian
nationality with the
age of 37 years
old.
BUSINESS OPERATIONS
The subject is
engaged in importing and
distributing of diamonds
and gemstones for jewelry
trading and production.
PURCHASE
The
products are imported
from India and
Hong Kong.
SALES
100% of the
products is sold
locally to wholesalers,
manufacturers and end-users.
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.
Imports are by
T/T.
BANKING
The
banker’s name was
not disclosed.
EMPLOYMENT
The
subject employs 2
staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
COMMENT
The subject remains
optimistic and expects
domestic sales to
continue growing this
year. It is able
to maintain moderate sales from local consumption. The
subject is considered
to retain its
stability.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000 divided
into 20,000 shares
of Bht. 100 each with
fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at February 8,
2012]
|
NAME |
HOLDING |
% |
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Ms. Siriluck Phiram Nationality: Thai Address : 24/30
Moo 6, Bangpai,
Bangkae, Bangkok |
10,200 |
51.00 |
|
Mr. Ritesh Nagindas Doshi Nationality: Indian Address : 14-16
Mahaesak Rd., Suriyawongse,
Bangrak, Bangkok |
9,000 |
45.00 |
|
Mrs. Hetalben Ritesh Doshi Nationality: Indian Address : 14-16
Mahaesak Rd., Suriyawongse,
Bangrak, Bangkok |
800 |
4.00 |
Total Shareholders : 3
Share Structure [as
at February 8,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
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Thai |
1 |
10,200 |
51.00 |
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Foreign - Indian |
2 |
9,800 |
49.00 |
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Total |
3 |
20,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Wasana Tanmongkol No.
1888
Note:
The 2011 financial
statement was not
submitted to the
Commercial Registration Department
during investigation.
BALANCE SHEET [BAHT]
The latest
financial figures published
for December 31,
2010 & 2009
were:
ASSETS
|
Current Assets |
2010 |
2009 |
|
|
|
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|
Cash
and Cash Equivalent |
32,696.56 |
1,459,227.49 |
|
Trade
Accounts Receivable |
8,656,433.06 |
3,809,439.34 |
|
Inventories |
11,448,770.94 |
9,540,206.08 |
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Other
Current Assets |
4,011.20 |
23,509.11 |
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Total
Current Assets |
20,141,911.76 |
14,832,382.02 |
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Fixed Assets |
11,023.67 |
16,494.90 |
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Other
Non-current Assets |
22,500.00 |
22,500.00 |
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Total
Assets |
20,175,435.43 |
14,871,376.92 |
LIABILITIES & SHAREHOLDERS'
EQUITY [BAHT]
|
Current
Liabilities |
2010 |
2009 |
|
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Trade
Accounts Payable |
15,673,890.78 |
11,327,692.20 |
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Other
Current Liabilities |
75,926.33 |
91,907.59 |
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Total Current Liabilities |
15,749,817.11 |
11,419,599.79 |
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Long-term Loan from Related Person |
3,300,000.00 |
2,450,000.00 |
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Total
Liabilities |
19,049,817.11 |
13,869,599.79 |
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Shareholders’ Equity |
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Share
capital : Baht 100 par
value
authorized, issued and
fully
paid share capital
20,000 shares |
2,000,000.00 |
2,000,000.00 |
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Capital
Paid |
2,000,000.00 |
2,000,000.00 |
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Retained
Earning- Unappropriated |
[874,381.68] |
[998,222.87] |
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Total Shareholders' Equity |
1,125,618.32 |
1,001,777.13 |
|
Total Liabilities &
Shareholders' Equity |
20,175,435.43 |
14,871,376.92 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2010 |
2009 |
|
|
|
|
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Sales |
15,206,009.27 |
6,391,394.71 |
|
Other
Income |
624,571.90 |
210,160.92 |
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Total
Revenues |
15,830,581.17 |
6,601,555.63 |
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Expenses |
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Cost
of Goods Sold
|
14,773,893.78 |
5,484,480.69 |
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Selling
Expenses |
8,183.00 |
- |
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Administrative Expenses |
924,663.20 |
899,938.25 |
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Total Expenses |
15,706,739.98 |
6,384,418.94 |
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Profit / [Loss] before Income Tax |
123,841.19 |
217,136.69 |
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Income
Tax |
- |
[10,269.05] |
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Net
Profit / [Loss] |
123,841.19 |
206,867.64 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2010 |
2009 |
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LIQUIDITY RATIO |
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CURRENT RATIO |
TIMES |
1.28 |
1.30 |
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QUICK RATIO |
TIMES |
0.55 |
0.46 |
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ACTIVITY RATIO |
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FIXED ASSETS TURNOVER |
TIMES |
1,379.40 |
387.48 |
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TOTAL ASSETS TURNOVER |
TIMES |
0.75 |
0.43 |
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INVENTORY CONVERSION PERIOD |
DAYS |
282.85 |
634.91 |
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INVENTORY TURNOVER |
TIMES |
1.29 |
0.57 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
207.79 |
217.55 |
|
RECEIVABLES TURNOVER |
TIMES |
1.76 |
1.68 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
387.24 |
753.87 |
|
CASH CONVERSION CYCLE |
DAYS |
103.40 |
98.59 |
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PROFITABILITY RATIO |
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COST OF GOODS SOLD |
% |
97.16 |
85.81 |
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SELLING & ADMINISTRATION |
% |
6.13 |
14.08 |
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INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
6.95 |
17.48 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
0.81 |
3.40 |
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NET PROFIT MARGIN |
% |
0.81 |
3.24 |
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RETURN ON EQUITY |
% |
11.00 |
20.65 |
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RETURN ON ASSET |
% |
0.61 |
1.39 |
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EARNING PER SHARE |
BAHT |
6.19 |
10.34 |
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LEVERAGE RATIO |
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DEBT RATIO |
TIMES |
0.94 |
0.93 |
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DEBT TO EQUITY RATIO |
TIMES |
16.92 |
13.84 |
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TIME INTEREST EARNED |
TIMES |
- |
- |
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ANNUAL GROWTH |
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SALES GROWTH |
% |
137.91 |
|
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OPERATING PROFIT |
% |
(42.97) |
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|
NET PROFIT |
% |
(40.14) |
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|
FIXED ASSETS |
% |
(33.17) |
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TOTAL ASSETS |
% |
35.67 |
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PROFITABILITY
RATIO
|
Gross Profit Margin |
6.95 |
Acceptable |
Industrial
Average |
10.59 |
|
Net Profit Margin |
0.81 |
Impressive |
Industrial
Average |
0.13 |
|
Return on Assets |
0.61 |
Impressive |
Industrial
Average |
0.16 |
|
Return on Equity |
11.00 |
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 6.95%. 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 0.81%, 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
0.61%, 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 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.
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 |
1.28 |
Deteriorated |
Industrial
Average |
2.67 |
|
Quick Ratio |
0.55 |
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Cash Conversion Cycle |
103.40 |
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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 1.28 times in 2010, decreased from 1.3 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 0.55 times in 2010,
increased from 0.46 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 104 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.94 |
Acceptable |
Industrial
Average |
0.55 |
|
Debt to Equity Ratio |
16.92 |
Risky |
Industrial
Average |
1.35 |
|
Times Interest Earned |
- |
|
Industrial
Average |
0.65 |
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 0.94 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 |
1,379.40 |
Impressive |
Industrial
Average |
6.18 |
|
Total Assets Turnover |
0.75 |
Acceptable |
Industrial
Average |
1.29 |
|
Inventory Conversion Period |
282.85 |
|
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Inventory Turnover |
1.29 |
Satisfactory |
Industrial
Average |
1.44 |
|
Receivables Conversion Period |
207.79 |
|
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Receivables Turnover |
1.76 |
Deteriorated |
Industrial
Average |
3.64 |
|
Payables Conversion Period |
387.24 |
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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 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.
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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.
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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.
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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.52.82 |
|
|
1 |
Rs.84.96 |
|
Euro |
1 |
Rs.68.61 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.