MIRA
INFORM REPORT
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Report Date : |
06.09.2012 |
IDENTIFICATION DETAILS
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Name : |
KINJAL STAR CO., LTD. |
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Registered Office : |
Room 281, 28th Floor, Jewelry Trade Center, 919/361 Silom Road, Silom, Bangrak, Bangkok 10500, |
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Country : |
Thailand |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
18.05.1994 |
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Com. Reg. No.: |
0105537057530 |
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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 : |
3 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – March 31st, 2012
|
Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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Thailand
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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
KINJAL
STAR CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
281, 28th FLOOR,
JEWELRY TRADE CENTER,
919/361 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2630-2208,
081 638-8107, 081
922-2849
FAX :
[66] 2630-2300
E-MAIL
ADDRESS : pravinpatel70@yahoo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1994
REGISTRATION
NO. : 0105537057530
[Former
: 1299/2537]
TAX
ID NO. : 3011420805
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.
PATEL PRAVINBHAI BALUBHAI,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 3
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 May 18,
1994 as a
private limited company under
the name style KINJAL STAR
CO., LTD., by
Thai and Indian
groups, with the objective
to be engaged
in jewelry business.
It currently employs
3 staff.
The
subject’s registered address
is Room 2812,
28th Flr., Jewelry
Trade Center, 919/361
Silom Rd., Silom,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
THE BOARD
OF DIRECTOR
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Name |
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Nationality |
Age |
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Mr. Patel Pravinbhai Balubhai |
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Indian |
42 |
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Mr. Bipinkumar Gopalbhai Borad |
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Indian |
30 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Patel Pravinbhai Balubhai
is the Managing
Director.
He is Indian
nationality with the
age of 42
years old.
BUSINESS OPERATIONS
The subject is engaged
in importing and
distributing various kinds
of diamonds and gemstones for
jewelry trading and
productions.
PURCHASE
The products are
purchased from suppliers
both domestic and
overseas, mainly in
India and Hong
Kong.
SALES
100% of the
products is sold
locally by wholesale
to traders and
manufacturers.
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.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The
subject employs 3
staff.
LOCATION DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
COMMENT
Subject
was formed in 1994 as an
importer and distributor of diamonds and gemstones.
Subject was able to maintain a moderate
business in the past year, while current business outlook
is underpinned by
strong sales from
promising market.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 2,000,000
divided into 20,000 shares
of Bht. 100
each.
On
December 8, 1995, the
capital was increased
to Bht. 4,000,000 divided
into 40,000 shares
of Bht. 100
each with fully
paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
April 30, 2012]
|
NAME |
HOLDING |
% |
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Mr. Patel Pravinbhai Balubhai Nationality: Indian Address : India |
19,600 |
49.00 |
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Mr. Sombat Jaiharn Nationality: Thai Address : 80/149
Serithai Rd., Klongkum,
Buengkum, Bangkok |
5,100 |
12.75 |
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Mr. Manus Liabsaeng Nationality: Thai Address : 7
Moo 6, Donyor,
Muang, Nakornnayok |
5,100 |
12.75 |
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Ms. Zorba Boonmalert Nationality: Thai Address : 45
Moo 5, Yothaka,
Bangnampriew,
Chachoengsao |
5,100 |
12.75 |
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Ms. Suree Thuanjeen Nationality: Thai Address : 33
Moo 2, Klongdarn,
Bangbor,
Samutprakarn |
5,100 |
12.75 |
Total Shareholders : 5
Share Structure [as
at April 30,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
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Thai |
4 |
20,400 |
51.00 |
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Foreign-Indian |
1 |
19,600 |
49.00 |
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Total |
5 |
40,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mrs. Wasana Tanmongkol No.
1888
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
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Cash and Cash
Equivalents |
145,892.04 |
203,857.90 |
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Trade Accounts &
Other Receivable |
7,811,685.91 |
11,273,341.59 |
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Short-term Lending |
300,000.00 |
1,400,000.00 |
|
Inventories |
23,840,056.40 |
8,674,090.08 |
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Total Current
Assets |
32,097,634.35 |
21,551,289.57 |
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Office Equipment |
182,680.11 |
176,434.66 |
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Other Non-current Assets |
6,000.00 |
6,000.00 |
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Total Assets
|
32,286,314.46 |
21,733,724.23 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current Liabilities |
2011 |
2010 |
|
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Bank Overdraft &
Short-term Loan from Financial Institution |
6,112,640.91 |
7,882,997.88 |
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Trade Accounts & Other
Payable |
21,056,731.71 |
8,306,631.82 |
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Pre-receipt Income from Goods |
- |
565,866.00 |
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Accrued Income Tax |
44,013.09 |
24,583.56 |
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Total Current
Liabilities |
27,213,385.71 |
16,780,079.26 |
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Total Liabilities |
27,213,385.71 |
16,780,079.26 |
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Shareholders'
Equity |
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Share capital : Baht 100
value Authorized &
issued 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 |
1,072,928.75 |
953,644.97 |
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Total
Shareholders' Equity |
5,072,928.75 |
4,953,644.97 |
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Total
Liabilities & Shareholders' Equity |
32,286,314.45 |
21,733,724.23 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
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Sales Income |
42,254,866.41 |
34,150,341.19 |
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Other Income |
19,114.37 |
1,376,825.97 |
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Total Revenues
|
42,273,980.78 |
35,527,167.16 |
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Expenses |
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Cost of Goods
Sold |
38,841,723.16 |
32,954,730.36 |
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Selling Expenses |
413,264.25 |
389,030.90 |
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Administrative Expenses |
1,739,234.21 |
1,760,527.67 |
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Other Expenses |
546,202.70 |
- |
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Total Expenses |
41,540,424.32 |
35,104,288.93 |
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Profit / [Loss] before Financial
Costs & Income Tax |
733,556.46 |
422,878.23 |
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Financial Costs |
[549,559.59] |
[412,490.98] |
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Profit /[Loss] before Income
Tax |
183,996.87 |
10,387.25 |
|
Income Tax |
[64,713.09] |
[50,083.56] |
|
Net Profit /[Loss] |
119,283.78 |
[39,696.31] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
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LIQUIDITY RATIO |
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CURRENT RATIO |
TIMES |
1.18 |
1.28 |
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QUICK RATIO |
TIMES |
0.30 |
0.77 |
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ACTIVITY RATIO |
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FIXED ASSETS TURNOVER |
TIMES |
231.31 |
193.56 |
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TOTAL ASSETS TURNOVER |
TIMES |
1.31 |
1.57 |
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INVENTORY CONVERSION PERIOD |
DAYS |
224.03 |
96.07 |
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INVENTORY TURNOVER |
TIMES |
1.63 |
3.80 |
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RECEIVABLES CONVERSION PERIOD |
DAYS |
67.48 |
120.49 |
|
RECEIVABLES TURNOVER |
TIMES |
5.41 |
3.03 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
197.87 |
92.00 |
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CASH CONVERSION CYCLE |
DAYS |
93.63 |
124.56 |
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PROFITABILITY
RATIO |
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COST OF GOODS SOLD |
% |
91.92 |
96.50 |
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SELLING & ADMINISTRATION |
% |
5.09 |
6.29 |
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INTEREST |
% |
1.30 |
1.21 |
|
GROSS PROFIT MARGIN |
% |
8.12 |
7.53 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
1.74 |
1.24 |
|
NET PROFIT MARGIN |
% |
0.28 |
(0.12) |
|
RETURN ON EQUITY |
% |
2.35 |
(0.80) |
|
RETURN ON ASSET |
% |
0.37 |
(0.18) |
|
EARNING PER SHARE |
BAHT |
2.98 |
(0.99) |
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LEVERAGE RATIO |
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DEBT RATIO |
TIMES |
0.84 |
0.77 |
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DEBT TO EQUITY RATIO |
TIMES |
5.36 |
3.39 |
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TIME INTEREST EARNED |
TIMES |
1.33 |
1.03 |
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ANNUAL GROWTH |
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SALES GROWTH |
% |
23.73 |
|
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OPERATING PROFIT |
% |
73.47 |
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|
NET PROFIT |
% |
400.49 |
|
|
FIXED ASSETS |
% |
3.54 |
|
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TOTAL ASSETS |
% |
48.55 |
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PROFITABILITY
RATIO
|
Gross Profit Margin |
8.12 |
Satisfactory |
Industrial Average |
9.66 |
|
Net Profit Margin |
0.28 |
Impressive |
Industrial Average |
(0.20) |
|
Return on Assets |
0.37 |
Impressive |
Industrial Average |
(0.27) |
|
Return on Equity |
2.35 |
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 8.12%. When
compared with the industry average, the ratio of the company was lower. This
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. Net Profit Margin ratio is 0.28%,
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
0.37%, 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 2.35%, 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.
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 |
1.18 |
Acceptable |
Industrial Average |
1.72 |
|
Quick Ratio |
0.30 |
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Cash Conversion Cycle |
93.63 |
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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 1.18 times in 2011, decrease from 1.28 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,
decrease from 0.77 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 94 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.84 |
Acceptable |
Industrial Average |
0.60 |
|
Debt to Equity Ratio |
5.36 |
Risky |
Industrial Average |
1.67 |
|
Times Interest Earned |
1.33 |
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 1.34 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 Uptrend
Times Interest Earned Uptrend
ACTIVITY RATIO
|
Fixed Assets Turnover |
231.31 |
Impressive |
Industrial Average |
10.73 |
|
Total Assets Turnover |
1.31 |
Satisfactory |
Industrial Average |
1.47 |
|
Inventory Conversion Period |
224.03 |
|
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|
|
Inventory Turnover |
1.63 |
Satisfactory |
Industrial Average |
2.17 |
|
Receivables Conversion Period |
67.48 |
|
|
|
|
Receivables Turnover |
5.41 |
Impressive |
Industrial Average |
3.31 |
|
Payables Conversion Period |
197.87 |
|
|
|
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.
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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.
-
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.55.89 |
|
|
1 |
Rs.88.63 |
|
Euro |
1 |
Rs.70.02 |
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.