MIRA INFORM REPORT
|
Report Date : |
19.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
CHANTHAMANEE
JEWELRY CO., LTD. |
|
|
|
|
Formerly Known As : |
NIKITA STAR CO.,
LTD. |
|
|
|
|
Registered Office : |
Room 506, 5th Floor, Poonmanee Building, 30-32-34-36 Mahaesak Road, Suriyawongse, Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
28.02.2005 |
|
|
|
|
Com. Reg. No.: |
0105548029346 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Importer, distributor and
exporter of diamonds and jewelry
products |
|
|
|
|
No. of Employees : |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
C |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
Status : |
Undetermined |
|
Payment Behaviour : |
--- |
|
Litigation : |
--- |
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 & address
CHANTHAMANEE JEWELRY
CO., LTD.
[Former : NIKITA STAR CO., LTD.]
SUMMARY
BUSINESS
ADDRESS : -
TELEPHONE : -
FAX :
-
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : ROOM
506, 5th FLOOR,
POONMANEE BUILDING,
30-32-34-36 MAHAESAK
ROAD, SURIYAWONGSE,
BANGRAK, BANGKOK
10500, THAILAND
ESTABLISHED
: 2005
REGISTRATION
NO. : 0105548029346 [Former : 0108454804519]
TAX
ID NO. : 3031708082
CAPITAL REGISTERED : BHT.
4,000,000
CAPITAL PAID-UP : BHT. 4,000,000
SHAREHOLDER’S PROPORTION : THAI :
51.00%
INDIAN
: 49.00%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. TUSHAR DARDA,
INDIAN
MANAGING
DIRECTOR
NO.
OF STAFF : -
LINES
OF BUSINESS : DIAMONDS AND
JEWELRY PRODUCTS
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : -
PRESENT
SITUATION : -
REPUTATION : -
MANAGEMENT
STANDARD : -
HISTORY
The
subject was established
on February 28,
2005 as a
private limited company under
the registered name “Nikita Star
Co., Ltd.” by
Thai and Indian
groups, with the
objective to engage
in diamond and
jewelry trading business.
On April 18,
2012, its registered
name was changed
to CHANTHAMANEE JEWELRY
CO., LTD.
The
subject’s registered address
was initially located
at 109/10 Pan Rd., Silom, Bangrak, Bangkok
10500.
On
March 19, 2008,
its registered address
was relocated to
Room 506, 5th Floor,
Poonmanee Building, 30-32-34-36
Mahaesak Rd., Suriyawongse,
Bangrak, Bangkok 10500.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Tushar Darda |
|
Indian |
29 |
|
Ms. Parpmanee Seesasai |
|
Thai |
36 |
|
Mrs. Thanitranand
Thanachukijnithidisya |
|
Thai |
37 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject with
company’s affixed.
MANAGEMENT
Mr. Tushar Darda is
the Managing Director.
He is Indian
nationality with the
age of 29
years old.
NOTE
Please
be informed that
we are unable
to contact the
company during current
investigation.
COMMENT
The
subject’s operating performance
in 2011 was satisfactory
with an increase
in both sales
revenue and net
profit comparing to the
same period of
the previous year.
Unfortunately, we
are unable to
contact the company
at the new
registered address to
obtain further information, due to
there is no
contacted telephone number
under the new
company name found at
the new registered
address.
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
September 20, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Tushar Darda Nationality: Indian Address
: Room 506, 5th Floor,
Poonmanee Building, 30-32-34-36 Mahaesak
Rd., Suriyawongse, Bangrak, Bangkok
10500. |
19,600 |
49.00 |
|
Ms. Parpmanee Seesasai Nationality: Thai Address : 29 Moo 1,
T. Samnakkham, A. Sadao, Songkhla |
15,000 |
37.50 |
|
Mrs. Thanitranand
Thanachukijnithidisya Nationality: Thai Address : 515/11
Charoenkrung Rd., Wadprayakrai,
Bangkorlaem, Bangkok |
5,400 |
13.50 |
Total Shareholders : 3
Share Structure [as
at September 20,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
20,400 |
51.00 |
|
Foreign-Indian |
1 |
19,600 |
49.00 |
|
Total |
3 |
40,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED PUBLIC
ACCOUNTANT NO :
Ms. Monchaya Tantikulpong No.
6866
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
122,916.67 |
296,432.43 |
|
Trade Accounts & Other Receivable |
10,545,963.06 |
5,587,489.09 |
|
Inventories |
5,508,530.51 |
7,137,323.96 |
|
|
|
|
|
Total Current Assets
|
16,177,410.24 |
13,021,245.48 |
|
|
|
|
|
Fixed Assets |
67,267.80 |
92,325.86 |
|
Total Assets |
16,244,678.04 |
13,113,571.34 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts & Other
Payable |
7,028,385.36 |
524,146.86 |
|
Loan from Director |
4,810,000.00 |
9,210,000.00 |
|
Accrued Income Tax |
126,760.32 |
30,409.13 |
|
|
|
|
|
Total Current Liabilities |
11,965,145.68 |
9,764,555.99 |
|
Total Liabilities |
11,965,145.68 |
9,764,555.99 |
|
|
|
|
|
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 |
279,532.36 |
[650,984.70] |
|
Total Shareholders' Equity |
4,279,532.36 |
3,349,015.30 |
|
Total Liabilities & Shareholders' Equity |
16,244,678.04 |
13,113,571.29 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2011 |
2010 |
|
Sales |
17,884,932.22 |
9,345,916.94 |
|
Other Income |
361,486.88 |
226,015.93 |
|
Total Revenues |
18,246,419.10 |
9,571,932.87 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
15,380,695.88 |
7,520,343.11 |
|
Selling and Administrative Expenses |
1,788,367.14 |
1,663,821.28 |
|
Total Expenses |
17,169,063.02 |
9,184,164.39 |
|
|
|
|
|
Profit before Income Tax |
1,077,356.08 |
387,768.48 |
|
Income Tax |
[146,839.02] |
[40,157.63] |
|
Net Profit / [Loss] |
930,517.06 |
347,610.85 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.35 |
1.33 |
|
QUICK RATIO |
TIMES |
0.89 |
0.60 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
265.88 |
101.23 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.10 |
0.71 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
130.72 |
346.41 |
|
INVENTORY TURNOVER |
TIMES |
2.79 |
1.05 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
215.22 |
218.22 |
|
RECEIVABLES TURNOVER |
TIMES |
1.70 |
1.67 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
166.79 |
25.44 |
|
CASH CONVERSION CYCLE |
DAYS |
179.16 |
539.19 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
86.00 |
80.47 |
|
SELLING & ADMINISTRATION |
% |
10.00 |
17.80 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
16.02 |
21.95 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
6.02 |
4.15 |
|
NET PROFIT MARGIN |
% |
5.20 |
3.72 |
|
RETURN ON EQUITY |
% |
21.74 |
10.38 |
|
RETURN ON ASSET |
% |
5.73 |
2.65 |
|
EARNING PER SHARE |
BAHT |
23.26 |
8.69 |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.74 |
0.74 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.80 |
2.92 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
91.37 |
|
|
OPERATING PROFIT |
% |
177.83 |
|
|
NET PROFIT |
% |
167.69 |
|
|
FIXED ASSETS |
% |
(27.14) |
|
|
TOTAL ASSETS |
% |
23.88 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
16.02 |
Impressive |
Industrial
Average |
15.83 |
|
Net Profit Margin |
5.20 |
Impressive |
Industrial
Average |
0.22 |
|
Return on Assets |
5.73 |
Impressive |
Industrial
Average |
0.24 |
|
Return on Equity |
21.74 |
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. Gross Profit Margin is 16.02%. 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. Net Profit Margin ratio is 5.2%,
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
5.73%, 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 21.74%, 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 |
1.35 |
Satisfactory |
Industrial
Average |
1.69 |
|
Quick Ratio |
0.89 |
|
|
|
|
Cash Conversion Cycle |
179.16 |
|
|
|
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 1.35 times in 2011, increase from 1.33 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 0.89 times in 2011,
increase from 0.6 times, by excluding inventory, the company may have problems
meeting current liabilities.
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 180 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.74 |
Acceptable |
Industrial
Average |
0.56 |
|
Debt to Equity Ratio |
2.80 |
Risky |
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 0.74 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 |
265.88 |
Impressive |
Industrial
Average |
4.89 |
|
Total Assets Turnover |
1.10 |
Satisfactory |
Industrial
Average |
1.36 |
|
Inventory Conversion Period |
130.72 |
|
|
|
|
Inventory Turnover |
2.79 |
Impressive |
Industrial
Average |
2.04 |
|
Receivables Conversion Period |
215.22 |
|
|
|
|
Receivables Turnover |
1.70 |
Deteriorated |
Industrial
Average |
3.46 |
|
Payables Conversion Period |
166.79 |
|
|
|
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.52.96 |
|
UK Pound |
1 |
Rs.85.45 |
|
Euro |
1 |
Rs.69.46 |
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.