MIRA
INFORM REPORT
|
Report Date : |
06.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
SRI DHANLAXMI TRADING CO., LTD. |
|
|
|
|
Formerly Known As : |
DHANLAXMI TRADING CO., LTD. |
|
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Registered Office : |
24th Floor, |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
27.04.1998 |
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Com. Reg. No.: |
0105541025515 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Subject is engaged in importing and distributing diamonds, gemstones and jewelry products. |
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No of Employees : |
2 |
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 |
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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 – June 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Thailand |
B1 |
B1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low Risk |
A2 |
|
Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
|
Moderate High Risk |
C1 |
|
High Risk |
C2 |
|
Very High Risk |
D |
THAILAND ECONOMIC OVERVIEW
With a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries, Thailand achieved steady growth due largely to industrial and agriculture exports - mostly electronics, agricultural commodities, automobiles and parts, and processed foods. Unemployment, at less than 1% of the labor force, stands as one of the lowest levels in the world, which puts upward pressure on wages in some industries. Thailand also attracts nearly 2.5 million migrant workers from neighboring countries. The Thai government in 2013 implemented a nation-wide 300 baht ($10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners. The Thai economy has weathered internal and external economic shocks in recent years. The global economic recession severely cut Thailand's exports, with most sectors experiencing double-digit drops. In late 2011 Thailand's recovery was interrupted by historic flooding in the industrial areas in Bangkok and its five surrounding provinces, crippling the manufacturing sector. The government approved flood mitigation projects worth $11.7 billion, which were started in 2012, to prevent similar economic damage, and an additional $75 billion for infrastructure over the following seven years. This was expected to lead to an economic upsurge but growth has remained slow, in part due to ongoing political unrest and resulting uncertainties. Spending on infrastructure will require re-approval once a new government is seated
|
Source
: CIA |
COMPANY NAME
SRI
DHANLAXMI TRADING CO.,
LTD.
[Former
: 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,
Jewelry Trade Center
Building, 919/306 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 |
44 |
|
Mrs. Sejal Jignesh Shah |
|
Indian |
43 |
|
Mr. Daeng Prasad |
|
Thai |
40 |
|
Ms. Nithivara Srikamfun |
|
Thai |
34 |
AUTHORIZED PERSON
Anyone 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 44
years old.
BUSINESS OPERATIONS
The subject
is engaged in
importing and distributing
diamonds, gemstones and jewelry
products. The subject
also exports and
re-exports the jewelry
products.
PURCHASE
The
products are purchased
from suppliers and
manufacturers both domestic
and overseas, mainly
in India.
SALES
The products are
sold locally to
manufacturers and end-users.
EXPORT
The products are
exported and re-exported to Hong
Kong, Republic of
China 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 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.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
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 2013 was
reported a strong
growth.
Despite
slow domestic consumption,
the subject had
performed well in 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
April 30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Jignesh Maganlal Shah Nationality: Indian Address : 24th Floor,
Jewelry Trade Center
Building,
919/306 Silom Rd.,
Silom, Bangrak, Bangkok |
19,599 |
49.00 |
|
Mr. Daeng Prasad Nationality: Thai Address : 275/3
Soi Watchannai, Bangkorlaem,
Bangkok |
10,200 |
25.50 |
|
Ms. Nithivara Srikamfun Nationality: Thai Address : 199
Moo 1, T. Nongtong, A. Hangdong, Chiangmai |
10,200 |
25.50 |
|
Mrs. Sejal Jignesh Shah Nationality: Indian Address : 24th Floor,
Jewelry Trade Center
Building,
919/306 Silom Rd.,
Silom, Bangrak, Bangkok |
1 |
- |
Total Shareholders : 4
Share
Structure [as at
April 30, 2014]
|
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,
2013, 2012 & 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
63,148.77 |
294,996.69 |
334,128.79 |
|
Trade Accounts Receivable
|
51,983,570.90 |
9,699,867.60 |
447,429.00 |
|
Inventories |
17,007,981.45 |
17,190,336.72 |
5,014,064.89 |
|
Other Current Assets
|
156,000.00 |
156,000.00 |
179,738.76 |
|
|
|
|
|
|
Total Current Assets
|
69,210,701.12 |
27,341,201.01 |
5,975,361.44 |
|
|
|
|
|
|
Office Automation |
2,008,468.44 |
2,122,427.32 |
14,684.06 |
|
Total Assets |
71,219,169.56 |
29,463,628.33 |
5,990,045.50 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank Overdraft |
480,502.12 |
- |
- |
|
Trade Accounts Payable |
44,488,956.45 |
25,539,680.79 |
4,506,841.98 |
|
Accrued Income Tax |
300,300.67 |
71,871.96 |
312,920.00 |
|
|
|
|
|
|
Total Current Liabilities |
45,269,759.24 |
25,611,552.75 |
4,819,761.98 |
|
|
|
|
|
|
Loan Payable from Bank |
1,571,163.17 |
1,877,448.76 |
- |
|
Loan Payable from Directors |
21,100,000.00 |
- |
- |
|
Total Liabilities |
67,940,922.41 |
27,489,001.51 |
4,819,761.98 |
|
|
|
|
|
|
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 |
4,000,000.00 |
|
|
|
|
|
|
Capital Paid |
4,000,000.00 |
4,000,000.00 |
4,000,000.00 |
|
Retained Earning - Unappropriated [Deficit] |
[721,752.85] |
[2,025,373.18] |
[2,829,716.48] |
|
Total Shareholders' Equity
|
3,278,247.15 |
1,974,626.82 |
1,170,283.52 |
|
Total Liabilities &
Shareholders' Equity |
71,219,169.56 |
29,463,628.33 |
5,990,045.50 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
62,763,956.37 |
17,998,342.15 |
3,308,275.04 |
|
Export Income |
- |
- |
9,604,655.03 |
|
Gain on Exchange Rate |
- |
112,987.62 |
- |
|
Total Revenues |
62,763,956.37 |
18,111,329.77 |
12,912,930.07 |
|
|
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
59,048,674.10 |
15,535,507.08 |
11,790,028.88 |
|
Selling and Administrative Expenses |
1,922,100.83 |
1,544,521.20 |
1,378,126.28 |
|
Total Expenses |
60,970,774.93 |
17,080,028.28 |
13,168,155.16 |
|
Profit/[Loss] before Financial
Cost & Income Tax |
1,793,181.44 |
1,031,301.49 |
[255,225.09] |
|
Financial Cost |
[159,260.44] |
[155,086.23] |
- |
|
Profit/[Loss] before Income Tax |
1,633,921.00 |
876,215.26 |
[255,225.09] |
|
Income Tax |
[330,300.67] |
[71,871.96] |
- |
|
Net Profit / [Loss] |
1,303,620.33 |
804,343.30 |
[255,225.09] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.53 |
1.07 |
1.24 |
|
QUICK RATIO |
TIMES |
1.15 |
0.39 |
0.16 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
31.25 |
8.48 |
879.38 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.88 |
0.61 |
2.16 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
105.13 |
403.88 |
155.23 |
|
INVENTORY TURNOVER |
TIMES |
3.47 |
0.90 |
2.35 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
302.31 |
196.71 |
12.65 |
|
RECEIVABLES TURNOVER |
TIMES |
1.21 |
1.86 |
28.86 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
275.00 |
600.04 |
139.52 |
|
CASH CONVERSION CYCLE |
DAYS |
132.44 |
0.55 |
28.35 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
94.08 |
86.32 |
91.30 |
|
SELLING & ADMINISTRATION |
% |
3.06 |
8.58 |
10.67 |
|
INTEREST |
% |
0.25 |
0.86 |
- |
|
GROSS PROFIT MARGIN |
% |
5.92 |
14.31 |
8.70 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.86 |
5.73 |
(1.98) |
|
NET PROFIT MARGIN |
% |
2.08 |
4.47 |
(1.98) |
|
RETURN ON EQUITY |
% |
39.77 |
40.73 |
(21.81) |
|
RETURN ON ASSET |
% |
1.83 |
2.73 |
(4.26) |
|
EARNING PER SHARE |
BAHT |
32.59 |
20.11 |
(6.38) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.95 |
0.93 |
0.80 |
|
DEBT TO EQUITY RATIO |
TIMES |
20.72 |
13.92 |
4.12 |
|
TIME INTEREST EARNED |
TIMES |
11.26 |
6.65 |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
248.72 |
39.38 |
|
|
OPERATING PROFIT |
% |
73.88 |
(504.08) |
|
|
NET PROFIT |
% |
62.07 |
415.15 |
|
|
FIXED ASSETS |
% |
(5.37) |
14,353.95 |
|
|
TOTAL ASSETS |
% |
141.72 |
391.88 |
|
ANNUAL GROWTH : IMPRESSIVE
An annual sales growth is 248.72%. Turnover has increased from THB
17,998,342.15 in 2012 to THB 62,763,956.37 in 2013. While net profit has
increased from THB 804,343.30 in 2012 to THB 1,303,620.33 in 2013. And total
assets has increased from THB 29,463,628.33 in 2012 to THB 71,219,169.56 in
2013.
PROFITABILITY : IMPRESSIVE
PROFITABILITY RATIO
|
Gross Profit Margin |
5.92 |
Impressive |
Industrial Average |
3.01 |
|
Net Profit Margin |
2.08 |
Impressive |
Industrial Average |
0.58 |
|
Return on Assets |
1.83 |
Acceptable |
Industrial Average |
3.55 |
|
Return on Equity |
39.77 |
Impressive |
Industrial Average |
14.14 |
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 5.92%. When compared with the industry
average, the ratio of the company was higher, 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. The company’s figure is 2.08%,
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. When compared with the
industry average, it was lower, the
company's figure is 1.83%.
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 39.77%, 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 : ACCEPTABLE
LIQUIDITY RATIO
|
Current Ratio |
1.53 |
Satisfactory |
Industrial Average |
1.60 |
|
Quick Ratio |
1.15 |
|
|
|
|
Cash Conversion Cycle |
132.44 |
|
|
|
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 1.53 times in 2013, increased from 1.07 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 1.15 times in 2013, increased
from 0.39 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 133 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.95 |
Acceptable |
Industrial Average |
0.73 |
|
Debt to Equity Ratio |
20.72 |
Risky |
Industrial Average |
2.73 |
|
Times Interest Earned |
11.26 |
Impressive |
Industrial Average |
- |
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 higher the percentage means that the company is
using less equity and has stronger leverage position.
Times Interest Earned measuring a company's ability to meet its debt
obligations. Ratio is 11.26 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 0.95 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 Stable
ACTIVITY : ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
31.25 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
0.88 |
Deteriorated |
Industrial Average |
6.16 |
|
Inventory Conversion Period |
105.13 |
|
|
|
|
Inventory Turnover |
3.47 |
Deteriorated |
Industrial Average |
12.03 |
|
Receivables Conversion Period |
302.31 |
|
|
|
|
Receivables Turnover |
1.21 |
Deteriorated |
Industrial Average |
8.23 |
|
Payables Conversion Period |
275.00 |
|
|
|
The company's Account Receivable Ratio is calculated as 1.21 and 1.86 in
2013 and 2012 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 2013
decreased from 2012. This would suggest the company had deteriorated in the
management of its debt collections.
Inventory Turnover in Days Ratio indicates the liquidity of inventory.
It estimates the number of days that it will take to sell the current
inventory. Inventory is particularly sensitive to change in business
activities. The inventory turnover in days has decreased from 404 days at the
end of 2012 to 105 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 0.9 times in year 2012 to 3.47 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.88 times and 0.61
times in 2013 and 2012 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 Stable
Total Assets Turnover Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
|
Key Areas |
Score |
Weight |
Weighted
Score |
|
LIQUIDITY RATIO |
1.33 |
25.00 |
33.25 |
|
ACTIVITY RATIO |
1.00 |
20.00 |
20.00 |
|
PROFITABILITY
RATIO |
3.33 |
25.00 |
83.25 |
|
LEVERAGE RATIO |
1.78 |
10.00 |
17.80 |
|
ANNUAL GROWTH |
3.20 |
20.00 |
64.00 |
|
Total Weight
(excluding - - Score) |
|
100.00 |
|
|
|
|
|
218.30 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 60.86 |
|
|
1 |
Rs. 102.67 |
|
Euro |
1 |
Rs. 81.69 |
INFORMATION DETAILS
|
Analysis Done by
: |
KRN |
|
|
|
|
Report Prepared
by : |
DPT |
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.