MIRA
INFORM REPORT
|
Report Date : |
12.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
SRI DHANLAXMI
TRADING CO., LTD. |
|
|
|
|
Registered Office : |
24th Floor,
Jewelry Trade Center
Building, 919/306 Silom Road,
Silom, Bangrak, Bangkok 10500, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
1998 |
|
|
|
|
Com. Reg. No.: |
0105541025515 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Importing and
distributing of diamonds,
gemstones and jewelry products,
as well as
exporting of local
products. |
|
|
|
|
No. of Employees : |
2 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Small company |
|
Payment Behaviour : |
Slow |
|
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) |
|
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
SRI
DHANLAXMI TRADING CO.,
LTD.
SUMMARY
BUSINESS
ADDRESS : 24th FLOOR,
JEWELRY TRADE CENTER
BUILDING,
919/306 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2630-0053,
081 839-8639
FAX :
[66] 2630-0053
E-MAIL
ADDRESS : -
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1998
REGISTRATION
NO. : 0105541025515
TAX
ID NO. : 3021011178
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. JIGNESH MAGANLAL
SHAH, INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 2
LINES
OF BUSINESS : DIAMONDS, GEMSTONES
& JEWELRY PRODUCTS
IMPORTER, DISTRIBUTOR
AND EXPORTER
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 April 27,
1998 as a
private limited company under
the originally registered
name “Dhanlaxmi Trading
Co., Ltd.”, by
Thai and Indian
groups, with the
business objective to be engaged
in international trading
of gems and
jewelry. On February
7, 2006, its
registered name was
changed to SRI
DHANLAXMI TRADING CO.,
LTD. It currently
employs 2 staff.
The subject’s
registered address is 24th Floor,
919/306 jewelry Trade
Center Building, Silom
Rd., Silom, Bangrak,
Bangkok 10500, and
this is the
subject’s current operation
address.
THE BOARD
OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Jignesh Maganlal Shah |
|
Indian |
42 |
|
Mrs. Sejal Jignesh Shah |
|
Indian |
41 |
AUTHORIZED PERSON
One of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Jignesh Maganlal Shah
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
of diamonds, gemstones and
jewelry products, as
well as exporting
of local products.
PURCHASE
Its
products are purchased
from suppliers both
domestic and overseas,
mainly in India.
SALES
The products are
sold locally to
manufacturers and end-users.
EXPORT
Local 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
according for the
past two years.
CREDIT
Sales are by
cash or on
the credit term
of 30 days.
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
D/A and T/T
on negotiated terms.
Exports are against
T/T on negotiated
terms.
BANKING
The
banker’s name was
not disclosed.
EMPLOYMENT
The
subject currently 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
Subject
is an importer
and distributor of
diamonds and gemstones,
as well as
exporter of jewelry
products with diamond,
gemstone and semi-precious
stones. Its business in 2011 was
slow from sluggish
demand in exported
countries like Japan
and other Asian countries.
Since the beginning
of this year,
its sales are
relatively slow with
order from overseas market
remains still.
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 July 15,
2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Jignesh Maganlal Shah Nationality: Indian Address : 919/306
Silom Rd., Silom,
Bangrak,
Bangkok |
19,599 |
49.00 |
|
Mr. Daeng Prasart Nationality: Thai Address : 275/3
Soi Watchannai, Bangkorlaem, Bangkok |
10,200 |
25.50 |
|
Ms. Nithivara Srikamfan Nationality: Thai Address : 199
Moo 1, T. Nongtong, A. Hangdong, Chiangmai |
10,200 |
25.50 |
|
Mrs. Sejal Jignesh Shah Nationality: Indian Address :
919/306 Silom Rd.,
Silom, Bangrak,
Bangkok |
1 |
- |
Total Shareholders : 4
Share Structure [as
at July 15,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
2 |
20,400 |
51.00 |
|
Foreign - Indian |
2 |
19,600 |
49.00 |
|
Total |
4 |
40,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Jate Suppatranam No.
1382
BALANCE SHEET [Baht]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
334,128.79 |
350,808.97 |
|
Trade Accounts Receivable
|
447,429.00 |
4,860,754.70 |
|
Inventories |
5,014,064.89 |
1,260,515.85 |
|
Other Current Assets
|
179,738.76 |
178,000.00 |
|
|
|
|
|
Total Current Assets
|
5,975,361.44 |
6,650,079.52 |
|
|
|
|
|
Office Automation |
14,684.06 |
1.00 |
|
Total Assets |
5,990,045.50 |
6,650,080.52 |
LIABILITIES & SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts Payable |
4,506,841.98 |
4,913,701.91 |
|
Other Current Liabilities |
312,920.00 |
310,870.00 |
|
|
|
|
|
Total Current Liabilities |
4,819,761.98 |
5,224,571.91 |
|
Total Liabilities |
4,819,761.98 |
5,224,571.91 |
|
|
|
|
|
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 |
[2,829,716.48] |
[2,574,491.39] |
|
Total Shareholders' Equity |
1,170,283.52 |
1,425,508.61 |
|
Total Liabilities & Shareholders' Equity |
5,990,045.50 |
6,650,080.52 |
PROFIT & LOSS
ACCOUNT
|
Revenue |
2011 |
2010 |
|
|
|
|
|
Sales Income |
3,308,275.04 |
7,277,761.15 |
|
Export Income |
9,604,655.03 |
4,860,754.70 |
|
Total Revenues |
12,912,930.07 |
12,138,515.85 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
11,790,028.88 |
11,368,507.83 |
|
Selling and Administrative Expenses |
1,378,126.28 |
1,220,517.35 |
|
Total Expenses |
13,168,155.16 |
12,589,025.18 |
|
Net Profit / [Loss] |
[255,225.09] |
[450,509.33] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
1.24 |
1.27 |
|
QUICK RATIO |
TIMES |
0.16 |
1.00 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
879.38 |
12,138,515.85 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.16 |
1.83 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
155.23 |
40.47 |
|
INVENTORY TURNOVER |
TIMES |
2.35 |
9.02 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
12.65 |
146.16 |
|
RECEIVABLES TURNOVER |
TIMES |
28.86 |
2.50 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
139.52 |
157.76 |
|
CASH CONVERSION CYCLE |
DAYS |
28.35 |
28.87 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
91.30 |
93.66 |
|
SELLING & ADMINISTRATION |
% |
10.67 |
10.05 |
|
INTEREST |
% |
- |
- |
|
GROSS PROFIT MARGIN |
% |
8.70 |
6.34 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(1.98) |
(3.71) |
|
NET PROFIT MARGIN |
% |
(1.98) |
(3.71) |
|
RETURN ON EQUITY |
% |
(21.81) |
(31.60) |
|
RETURN ON ASSET |
% |
(4.26) |
(6.77) |
|
EARNING PER SHARE |
BAHT |
(6.38) |
(11.26) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.80 |
0.79 |
|
DEBT TO EQUITY RATIO |
TIMES |
4.12 |
3.67 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
6.38 |
|
|
OPERATING PROFIT |
% |
(43.35) |
|
|
NET PROFIT |
% |
43.35 |
|
|
FIXED ASSETS |
% |
1,468,306.00 |
|
|
TOTAL ASSETS |
% |
(9.93) |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.70 |
Satisfactory |
Industrial
Average |
9.17 |
|
Net Profit Margin |
(1.98) |
Deteriorated |
Industrial
Average |
(0.11) |
|
Return on Assets |
(4.26) |
Deteriorated |
Industrial
Average |
(0.16) |
|
Return on Equity |
(21.81) |
Deteriorated |
Industrial
Average |
(0.32) |
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 8.7%. 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 -1.98%.
When compared with the industry average, the ratio of the company was lower.
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. When compared with the
industry average, it was lower, the company's figure is -4.26%.
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. When compared with the
industry average, it was lower, the company's figure is -21.81%.
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 |
1.24 |
Acceptable |
Industrial
Average |
2.38 |
|
Quick Ratio |
0.16 |
|
|
|
|
Cash Conversion Cycle |
28.35 |
|
|
|
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 1.24 times in 2011, decreased from 1.27 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 0.16 times in 2011,
decreased from 1.0 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 29 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Downtrend
LEVERAGE RATIO
|
Debt Ratio |
0.80 |
Acceptable |
Industrial
Average |
0.58 |
|
Debt to Equity Ratio |
4.12 |
Risky |
Industrial
Average |
1.47 |
|
Times Interest Earned |
- |
|
Industrial
Average |
0.59 |
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 0.8 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 |
879.38 |
Impressive |
Industrial
Average |
6.08 |
|
Total Assets Turnover |
2.16 |
Impressive |
Industrial
Average |
1.23 |
|
Inventory Conversion Period |
155.23 |
|
|
|
|
Inventory Turnover |
2.35 |
Impressive |
Industrial
Average |
1.38 |
|
Receivables Conversion Period |
12.65 |
|
|
|
|
Receivables Turnover |
28.86 |
Impressive |
Industrial
Average |
3.38 |
|
Payables Conversion Period |
139.52 |
|
|
|
Trend of the
average competitors in the same industry for last 5 years
Fixed Assets Turnover Uptrend
Total Assets Turnover Downtrend
Inventory Turnover Uptrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.52 |
|
|
1 |
Rs.88.84 |
|
Euro |
1 |
Rs.70.85 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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.