MIRA
INFORM REPORT
|
Report Date : |
18.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
OTELLO LIMITED PARTNERSHIP |
|
|
|
|
Registered Office : |
5th Floor, Wanglee
Building, 297 Surawong
Road, Suriyawongse,
Bangrak, Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2011 |
|
|
|
|
Date of Incorporation : |
03.07.2006 |
|
|
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Com. Reg. No.: |
0103549023170 |
|
|
|
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Legal Form : |
Limited Partnership |
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|
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Line of Business : |
The subject is engaged
in importing, distributing and
exporting, as well
as commission servicing
various kinds of
diamonds, gemstones and
jewelry products, as
well as other
products according to
customer’s requirement. |
|
|
|
|
No. of Employees : |
6 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
Payment Behaviour : |
No Complaints |
|
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) |
|
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
OTELLO LIMITED PARTNERSHIP
SUMMARY
BUSINESS
ADDRESS : 5th FLOOR,
WANGLEE BUILDING,
297 SURAWONG ROAD,
SURIYAWONGSE,
BANGRAK,
BANGKOK 10500, THAILAND
TELEPHONE : [66] 2635-6138
FAX :
[66] 2635-6139
E-MAIL
ADDRESS : chatchawan@otello.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 2006
REGISTRATION
NO. : 0103549023170
TAX
ID NO. : 3032279802
CAPITAL REGISTERED : BHT. 200,000
CAPITAL PAID-UP : BHT.
200,000
PARTNER’S
PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : LIMITED
PARTNERSHIP
EXECUTIVE : MR. VORAWUTH CHAIKIJTHAI,
THAI
MANAGING PARTNER
NO.
OF STAFF : 6
LINES
OF BUSINESS : TRADING COMPANY
IMPORTER, DISTRIBUTOR
AND BROKER
CORPORATE PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT WITH
GOOD PERFORMANCE
HISTORY
The
subject was established
on July 3, 2006
as a limited
partnership under the registered
name OTELLO LIMITED
PARTNERSHIP by Thai partners, with the
business objective to
supply products and
service to import
and distribute various
kinds of jewelry
and other products
to both domestic
and overseas markets.
It currently employs
6 staff.
The subject’s registered
address is 5th Flr.,
Wanglee Building, 297
Surawong Rd., Suriyawongse,
Bangrak, Bangkok 10500,
and this is
the subject’s current
operation address.
AUTHORIZED PERSON
Mr. Vorawuth Chaikijthai signs
on behalf of
the subject with
seal affixed. He
also bears full
financial resp
MANAGEMENT
Mr. Vorawuth Chaikijthai is
the Managing Partner.
He is Thai
nationality with the
age of 38
years old.
BUSINESS OPERATIONS
The subject is engaged
in importing, distributing
and exporting, as
well as commission
servicing various kinds
of diamonds, gemstones
and jewelry products,
as well as
other products according
to customer’s requirement.
PURCHASE
Its
products are purchased
from suppliers both
domestic and overseas,
mainly in India,
Hong Kong, Republic
of China.
SALES/SERVICES
The
products are sold
and served to
customers both local
and overseas, mainly
in 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
for the past
two years.
CREDIT
Sales and services
are by cash
or on the
credits term of
30-60 days.
Local bills are
paid by cash
or on the
credits of 30-60
days.
Imports are by
T/T.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject employs 6
staff.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
COMMENT
The company’s success during the past two
years can be attributed
to their top
quality products and services which consumers
have grown to trust. The
company has established new
foreign markets for
its promising business.
FINANCIAL INFORMATION
The
capital was registered
at Bht. 200,000 which was
carried by 2 persons as
followed:
Name Age Amount
Mr. Vorawuth Chaikijthai 38 Bht.
100,000 [Unlimited Partner]
Ms. Panjarat Sathapanaratkul 39 Bht. 100,000
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Ms. Sanicha Siriwatvitoon No.
6353
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2011, 2010
& 2009 were:
ASSETS
|
Current Assets |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Cash and Cash Equivalents |
2,954,145.92 |
1,089,676.13 |
21,633.10 |
|
Trade Accounts &
Other Receivable |
2,576,742.05 |
742,755.87 |
1,289,256.99 |
|
Inventories |
- |
1,847,591.78 |
281,661.83 |
|
Other Current Assets
|
289.62 |
23,782.17 |
32,300.00 |
|
|
|
|
|
|
Total Current Assets
|
5,531,177.59 |
3,703,805.95 |
1,624,851.92 |
|
|
|
|
|
|
Fixed Assets |
208,920.19 |
238,121.19 |
249,111.22 |
|
Other Non-current Assets |
32,300.00 |
32,300.00 |
- |
|
Total Assets |
5,772,397.78 |
3,974,227.14 |
1,873,963.14 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Trade Accounts Payable
|
2,374,102.00 |
734,864.94 |
272,690.30 |
|
Accrued Income Tax |
74,466.95 |
84,642.44 |
- |
|
Short-term Loan from Person or Related Company |
- |
- |
1,100,000.00 |
|
Other Current Liabilities |
214,673.31 |
196,988.63 |
117,232.43 |
|
|
|
|
|
|
Total Current Liabilities |
2,663,242.26 |
1,016,496.01 |
1,489,922.73 |
|
|
|
|
|
|
Long-term Loan |
1,200,000.00 |
2,000,000.00 |
- |
|
Total Liabilities |
3,863,242.26 |
3,016,496.01 |
1,489,922.73 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Capital Paid |
200,000.00 |
200,000.00 |
200,000.00 |
|
Retained Earning Unappropriated |
1,709,155.52 |
757,731.13 |
184,040.41 |
|
Total Shareholders' Equity |
1,909,155.52 |
957,731.13 |
384,040.41 |
|
Total Liabilities &
Shareholders' Equity |
5,772,397.78 |
3,974,227.14 |
1,873,963.14 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2011 |
2010 |
2009 |
|
|
|
|
|
|
Sales Income |
34,864,655.75 |
15,763,009.95 |
3,813,408.45 |
|
Interest Income |
29,776.33 |
3,157.62 |
233.42 |
|
Other Income |
2,329.52 |
22,823.49 |
- |
|
Total Revenues |
34,896,761.60 |
15,788,991.06 |
3,813,641.87 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
28,325,994.04 |
12,902,788.60 |
2,491,843.60 |
|
Selling and Administrative Expenses |
5,447,340.95 |
2,233,782.60 |
874,511.30 |
|
Total Expenses |
33,773,334.99 |
15,136,571.20 |
3,366,354.90 |
|
Profit / [Loss] before Income
Tax |
1,123,426.61 |
652,419.86 |
447,286.97 |
|
Income Tax |
[172,002.22] |
[78,729.14] |
[5,913.30] |
|
|
|
|
|
|
Net Profit / [Loss] |
951,424.39 |
573,690.72 |
441,373.67 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2011 |
2010 |
2009 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.08 |
3.64 |
1.09 |
|
QUICK RATIO |
TIMES |
2.08 |
1.80 |
0.88 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
166.88 |
66.20 |
15.31 |
|
TOTAL ASSETS TURNOVER |
TIMES |
6.04 |
3.97 |
2.03 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
- |
52.27 |
41.26 |
|
INVENTORY TURNOVER |
TIMES |
- |
6.98 |
8.85 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
26.98 |
17.20 |
123.40 |
|
RECEIVABLES TURNOVER |
TIMES |
13.53 |
21.22 |
2.96 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
30.59 |
20.79 |
39.94 |
|
CASH CONVERSION CYCLE |
DAYS |
(3.62) |
48.68 |
124.72 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
81.25 |
81.85 |
65.34 |
|
SELLING & ADMINISTRATION |
% |
15.62 |
14.17 |
22.93 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
18.85 |
18.31 |
34.66 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.22 |
4.14 |
11.73 |
|
NET PROFIT MARGIN |
% |
2.73 |
3.64 |
11.57 |
|
RETURN ON EQUITY |
% |
49.83 |
59.90 |
114.93 |
|
RETURN ON ASSET |
% |
16.48 |
14.44 |
23.55 |
|
EARNING PER SHARE |
BAHT |
475.71 |
286.85 |
220.69 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.67 |
0.76 |
0.80 |
|
DEBT TO EQUITY RATIO |
TIMES |
2.02 |
3.15 |
3.88 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
121.18 |
313.36 |
|
|
OPERATING PROFIT |
% |
72.19 |
45.86 |
|
|
NET PROFIT |
% |
65.84 |
29.98 |
|
|
FIXED ASSETS |
% |
(12.26) |
(4.41) |
|
|
TOTAL ASSETS |
% |
45.25 |
112.08 |
|
ANNUAL GROWTH :
IMPRESSIVE
An annual sales growth is 121.18%. Turnover has increased from THB
15,763,009.95 in 2010 to THB 34,864,655.75 in 2011. While net profit has
increased from THB 573,690.72 in 2010 to THB 951,424.39 in 2011. And total
assets has increased from THB 3,974,227.14 in 2010 to THB 5,772,397.78 in 2011.
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
18.85 |
Acceptable |
Industrial
Average |
30.38 |
|
Net Profit Margin |
2.73 |
Acceptable |
Industrial
Average |
4.05 |
|
Return on Assets |
16.48 |
Impressive |
Industrial
Average |
4.37 |
|
Return on Equity |
49.83 |
Impressive |
Industrial
Average |
8.63 |
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 18.85%. When
compared with the industry average, the ratio of the company was lower, this
indicated that company may have 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 2.73%.
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. Return on Assets ratio is
16.48%, 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 49.83%, 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 Uptrend
LIQUIDITY :
EXCELLENT
LIQUIDITY RATIO
|
Current Ratio |
2.08 |
Impressive |
Industrial
Average |
1.82 |
|
Quick Ratio |
2.08 |
|
|
|
|
Cash Conversion Cycle |
(3.62) |
|
|
|
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 2.08 times in 2011, decreased from 3.64 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
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 2.08 times in 2011,
increased from 1.8 times, although excluding inventory so the company still
have good short-term financial strength.
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 -4 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : RISKY
LEVERAGE RATIO
|
Debt Ratio |
0.67 |
Acceptable |
Industrial
Average |
0.46 |
|
Debt to Equity Ratio |
2.02 |
Risky |
Industrial
Average |
0.91 |
|
Times Interest Earned |
- |
|
Industrial
Average |
3.61 |
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 0.67 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 Uptrend
ACTIVITY :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
166.88 |
Impressive |
Industrial
Average |
2.22 |
|
Total Assets Turnover |
6.04 |
Impressive |
Industrial
Average |
1.06 |
|
Inventory Conversion Period |
- |
|
|
|
|
Inventory Turnover |
- |
|
Industrial
Average |
5.44 |
|
Receivables Conversion Period |
26.98 |
|
|
|
|
Receivables Turnover |
13.53 |
Impressive |
Industrial
Average |
3.45 |
|
Payables Conversion Period |
30.59 |
|
|
|
The company's Account Receivable Ratio is calculated as 13.53 and 21.22 in
2011 and 2010 respectively. This ratio measures the efficiency of the company
in managing its trade debtors to generate revenue. A lower ratio may indicate
over extension and collection problems. Conversely, a higher ratio may indicate
an overtly stringent policy. In this case, the company's A/R ratio in 2011
decreased from 2010. This would suggest the company had deteriorated in the
management of its debt collections.
The company's Total Asset Turnover is calculated as 6.04 times and 3.97
times in 2011 and 2010 respectively. This ratio is determined by dividing total
assets into total sales turnover. The ratio measures the activity of the assets
and the ability of the firm to generate sales through the use of the assets.
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.54.64 |
|
|
1 |
Rs.87.45 |
|
Euro |
1 |
Rs.72.65 |
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.