MIRA
INFORM REPORT
|
Report Date : |
26.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
PACIFIC
LUXURY [ |
|
|
|
|
Registered Office : |
Unit 701, 7th Floor,
Gemopolis Industrial
Estate, 64/46 Soi
Sukhapiban 2 [Soi
31], Dokmai, Praves, Bangkok
10250 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
11.06.2010 |
|
|
|
|
Com. Reg. No.: |
0105553070308 |
|
|
|
|
Legal Form : |
Private
Limited Company |
|
|
|
|
Line of Business : |
Manufacturer, importer
and exporter of Jewelry products |
|
|
|
|
No. of Employees : |
30 employees |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
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 – 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
PACIFIC LUXURY [THAILAND] LIMITED
SUMMARY
BUSINESS
ADDRESS : UNIT
701, 7th FLOOR,
GEMOPOLIS INDUSTRIAL
ESTATE, 64/46
SOI SUKHAPIBAN 2 [SOI 31],
DOKMAI, PRAVES,
BANGKOK 10250
TELEPHONE : [66]
2727-0640-1
FAX :
[66] 2727-0642
E-MAIL
ADDRESS : nilesh@pacificluxury.cn
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2010
REGISTRATION
NO. : 0105553070308
TAX
ID NO. : 3033960082
CAPITAL REGISTERED : BHT. 4,000,000
CAPITAL PAID-UP : BHT.
4,000,000
SHAREHOLDER’S PROPORTION : INDIAN :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR.
KISHOR DASHRATHLAL GADANI,
INDIAN
MANAGING DIRECTOR
NO.
OF STAFF : 30
LINES
OF BUSINESS : JEWELRY PRODUCTS
MANUFACTURER, IMPORTER
AND EXPORTER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : FAIR
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
LOW PERFORMANCE
HISTORY
The
subject was established
on June 11,
2010 as a
private limited company under
the registered name
PACIFIC LUXURY [THAILAND]
LIMITED by Indian groups, with
the business objective
to manufacture various
kinds of jewelry
products for exports.
It currently employs
approximate 30 staff.
The
subject’s registered address
is 64/46 Gemopolis
Industrial Estate, Soi
Sukhapiban 2 [Soi 31],
Dokmai, Praves, Bangkok
10250, and this
is the subject’s
current operation address.
THE BOARD OF
DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Kishor Dashrathlal Gadani |
|
Indian |
38 |
|
Mr. Umesh Premjibhai Barod |
|
Indian |
44 |
|
Ms. Siriporn Poonpuang |
|
Thai |
30 |
AUTHORIZED PERSON
Any of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Kishor Dashrathlal Gadani
is the Managing
Director.
He is Indian
nationality with the
age of 38
years old.
Mr. Nilesh Sagye
is the General
Manager.
He is Indian
nationality.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing and exporting
various designs of
jewelry products such
as rings, earrings,
bracelet, necklace, pendant
and etc.
PURCHASE
Most
of diamonds and
gemstones for production
are imported from
India, Pakistan, Hong
Kong and Brazil,
the remaining is
purchased from local
suppliers.
EXPORT
100% of the
products is exported
to India, Hong
Kong, Japan and
European countries.
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
Local bills are
paid by cash
or on the
credits term of
30-60 days.
Imports are by
T/T.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
The
Siam Commercial Bank
Public Co., Ltd.
EMPLOYMENT
The
subject currently employs
approximately 30 staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
and factory at
the heading address.
Premise is located
in jewelry industrial
area.
COMMENT
Subject
is a manufacture,
distributor and exporter of
jewelry products. The
products are produced with
diamond, gemstone, semi-precious
stone, 18 K gold and
platinum. Its business
in 2011 was outstanding
with demand in
exported countries like
India and Hong Kong were promising. Since
the beginning of
this year its
sales have continuously
growing with increasing
order from overseas markets.
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 24, 2012]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Kishor Dashrathlal Gadani Nationality: Indian Address : 64/46
Soi Sukhapiban 2 [Soi
31],
Dokmai, Praves, Bangkok
10250 |
20,000 |
50.00 |
|
Mr. Deepak Gunwantal Gundi Nationality: Indian Address : 79
Chalermprakiat R.9 Soi
8, Nongbon,
Praves, Bangkok |
19,600 |
49.00 |
|
Mr. Umesh Premjibhai Barod Nationality: Indian Address : 79
Chalermprakiat R.9 Soi
8, Nongbon,
Praves, Bangkok |
400 |
1.00 |
Total Shareholders : 3
Share Structure [as
at July 24,
2012]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign – Indian |
3 |
40,000 |
100.00 |
|
Total |
3 |
40,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Manus Wangthamnoon No.
3134
BALANCE SHEET [BAHT]
The
latest financial figures
published for December
31, 2011 &
2010 were:
ASSETS
|
Current Assets |
2011 |
2010 |
|
|
|
|
|
Cash and Cash Equivalents |
190,127.93 |
866,193.78 |
|
Trade Accounts & Other Receivable |
46,938,426.17 |
4,102,582.17 |
|
Inventories |
6,395,478.21 |
1,339,128.06 |
|
Other Current Assets
|
237,337.50 |
243,018.77 |
|
|
|
|
|
Total Current Assets
|
53,761,369.81 |
6,550,922.78 |
|
|
|
|
|
Fixed Assets |
10,065,279.81 |
10,550,984.48 |
|
Other Non-current Assets |
47,200.00 |
46,900.00 |
|
Total Assets |
63,873,849.62 |
17,148,807.26 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
|
|
|
|
|
Trade Accounts &
Other Payable |
61,853,990.98 |
- |
|
Current Portion of Long-term
Liabilities -
Installment |
1,166,769.28 |
2,445,339.87 |
|
Other Current Liabilities |
137,285.96 |
33,527.89 |
|
|
|
|
|
Total Current Liabilities |
63,158,046.22 |
2,478,867.76 |
|
Long-term Liabilities -
Installment |
- |
1,166,769.28 |
|
Long-term Loan from
Related Person |
- |
10,274,785.19 |
|
Total Liabilities |
63,158,046.22 |
13,920,422.23 |
|
|
|
|
|
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 |
[3,284,196.60] |
[771,614.97] |
|
Total Shareholders' Equity |
715,803.40 |
3,228,385.03 |
|
Total Liabilities & Shareholders' Equity |
63,873,849.62 |
17,148,807.26 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
June 11,
2010 – Dec. 31,
2010 |
|
|
|
|
|
Sales |
132,929,359.91 |
5,164,240.71 |
|
Other Income |
471,565.83 |
362,692.93 |
|
Total Revenues |
133,400,925.74 |
5,526,933.64 |
|
Expenses |
|
|
|
|
|
|
|
Cost of Goods
Sold |
132,851,421.78 |
5,176,543.56 |
|
Selling Expenses |
327,001.31 |
- |
|
Administrative Expenses |
2,431,898.67 |
976,090.45 |
|
Total Expenses |
135,610,321.76 |
6,152,634.01 |
|
|
|
|
|
Profit/Loss] before Financial Costs & Income Tax |
[2,209,396.02] |
[625,700.37] |
|
Financial Costs |
[303,185.61] |
[145,914.60] |
|
|
|
|
|
Profit/[Loss] before Income Tax |
[2,512,581.63] |
[771,614.97] |
|
Income Tax |
- |
- |
|
Net Profit / [Loss] |
[2,512,581.63] |
[771,614.97] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
CURRENT RATIO |
TIMES |
0.85 |
2.64 |
|
QUICK RATIO |
TIMES |
0.75 |
2.00 |
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
13.21 |
0.49 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.08 |
0.30 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
17.57 |
94.42 |
|
INVENTORY TURNOVER |
TIMES |
20.77 |
3.87 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
128.88 |
289.96 |
|
RECEIVABLES TURNOVER |
TIMES |
2.83 |
1.26 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
169.94 |
- |
|
CASH CONVERSION CYCLE |
DAYS |
(23.48) |
384.39 |
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
COST OF GOODS SOLD |
% |
99.94 |
100.24 |
|
SELLING & ADMINISTRATION |
% |
2.08 |
18.90 |
|
INTEREST |
% |
0.23 |
2.83 |
|
GROSS PROFIT MARGIN |
% |
0.41 |
6.78 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
(1.66) |
(12.12) |
|
NET PROFIT MARGIN |
% |
(1.89) |
(14.94) |
|
RETURN ON EQUITY |
% |
(351.02) |
(23.90) |
|
RETURN ON ASSET |
% |
(3.93) |
(4.50) |
|
EARNING PER SHARE |
BAHT |
(62.81) |
(19.29) |
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
DEBT RATIO |
TIMES |
0.99 |
0.81 |
|
DEBT TO EQUITY RATIO |
TIMES |
88.23 |
4.31 |
|
TIME INTEREST EARNED |
TIMES |
(7.29) |
(4.29) |
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
SALES GROWTH |
% |
2,474.03 |
|
|
OPERATING PROFIT |
% |
253.11 |
|
|
NET PROFIT |
% |
(225.63) |
|
|
FIXED ASSETS |
% |
(4.60) |
|
|
TOTAL ASSETS |
% |
272.47 |
|
PROFITABILITY
RATIO
|
Gross Profit Margin |
0.41 |
Deteriorated |
Industrial Average |
15.83 |
|
Net Profit Margin |
(1.89) |
Deteriorated |
Industrial Average |
0.22 |
|
Return on Assets |
(3.93) |
Deteriorated |
Industrial Average |
0.24 |
|
Return on Equity |
(351.02) |
Deteriorated |
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 0.41%. 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. The company's figure is -1.89%.
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 -3.93%.
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 -351.02%.
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 |
0.85 |
Risky |
Industrial Average |
1.69 |
|
Quick Ratio |
0.75 |
|
|
|
|
Cash Conversion Cycle |
(23.48) |
|
|
|
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 0.85 times in 2011, decrease from 2.64 times, then the company may have
problems meeting its short-term obligations. 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 0.75 times in 2011,
decrease from 2 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 -24 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE RATIO
|
Debt Ratio |
0.99 |
Acceptable |
Industrial Average |
0.56 |
|
Debt to Equity Ratio |
88.23 |
Risky |
Industrial Average |
1.31 |
|
Times Interest Earned |
(7.29) |
Risky |
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 -7.29 lower than 1, so the company is not generating
enough cash from its EBIT to meet its interest obligations.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.99 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 |
13.21 |
Impressive |
Industrial Average |
4.89 |
|
Total Assets Turnover |
2.08 |
Impressive |
Industrial Average |
1.36 |
|
Inventory Conversion Period |
17.57 |
|
|
|
|
Inventory Turnover |
20.77 |
Impressive |
Industrial Average |
2.04 |
|
Receivables Conversion Period |
128.88 |
|
|
|
|
Receivables Turnover |
2.83 |
Satisfactory |
Industrial Average |
3.46 |
|
Payables Conversion Period |
169.94 |
|
|
|
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.53.53 |
|
UK Pound |
1 |
Rs.86.82 |
|
Euro |
1 |
Rs.69.03 |
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.