MIRA INFORM REPORT
|
Report Date : |
20.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
KINJAL STAR CO.,
LTD. |
|
|
|
|
Registered Office : |
Room
2812, 28th Floor, Jewelry Trade Center, 919/361 Silom
Road, Silom, Bangrak, Bangkok 10500
|
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
18.05.1994 |
|
|
|
|
Com. Reg. No.: |
0105537057530 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Distributor and Exporter of Diamonds and
Gemstones |
|
|
|
|
No of Employees : |
3 |
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 – december 01, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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
achieved steady growth due largely to industrial and agriculture exports -
mostly electronics, agricultural commodities, automobiles and parts, and
processed foods. Thailand is trying to maintain growth by encouraging domestic
consumption and public investment to offset weak exports in 2012. 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 is implementing a nation-wide 300 baht ($10) per day minimum
wage policy and deploying 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 crisis severely cut
Thailand's exports, with most sectors experiencing double-digit drops. In 2009,
the economy contracted 2.3%. However, in 2010, Thailand's economy expanded
7.8%, its fastest pace since 1995, as exports rebounded. In late 2011 growth
was interrupted by historic flooding in the industrial areas in Bangkok and its
five surrounding provinces, crippling the manufacturing sector. Industry
recovered from the second quarter of 2012 onward with GDP growth at 5.5% in
2012. The government has 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 next seven years with a plan
to start in 2013.
|
Source
: CIA |
COMPANY
NAME
KINJAL
STAR CO., LTD.
SUMMARY
BUSINESS
ADDRESS : ROOM
2812, 28th FLOOR, JEWELRY TRADE CENTER,
919/361 SILOM
ROAD, SILOM, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2630-2208,
081 638-8107,
081 922-2849,
2233-6021
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, 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 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
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Patel Pravinbhai Balubhai |
|
Indian |
44 |
|
Mr. Bipinkumar Gopalbhai Borad |
|
Indian |
32 |
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 44 years
old.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing various
kinds of diamonds
and gemstones for
jewelry trading and
productions, as well
as exporting of
Thai jewelry products.
PURCHASE
The products are
purchased from suppliers
both domestic and
overseas, mainly in
India and Hong
Kong.
SALES
Diamonds and gemstones
are sold locally
by wholesale to
traders and manufacturers.
EXPORT
Thai jewelry is
exported to 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 to 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 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, as
well as exporter
of Thai jewelry.
Subject reported a good
business in the year 2012.
Generally,
the subject’s business
has a good
prospect in response to
the demand in export markets.
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, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Patel Pravinbhai Balubhai Nationality: Indian Address : India |
19,600 |
49.00 |
|
Mr. Sombat Jaiharn Nationality: Thai Address : 80/149
Serithai Rd., Klongkum,
Buengkum, Bangkok |
5,100 |
12.75 |
|
Mr. Manus Liabsaeng Nationality: Thai Address : 7
Moo 6, Donyor,
Muang, Nakornnayok |
5,100 |
12.75 |
|
Ms. Zorba Boonmalert Nationality: Thai Address : 45
Moo 5, Yothaka,
Bangnampriew,
Chachoengsao |
5,100 |
12.75 |
|
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,
2013]
|
Nationality |
Shareholders |
No. of
Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
20,400 |
51.00 |
|
Foreign-Indian |
1 |
19,600 |
49.00 |
|
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, 2012, 2011
& 2010 were:
ASSETS
|
Current Assets |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Cash and Cash
Equivalents |
193,059.89 |
145,892.04 |
203,857.90 |
|
Trade Accounts &
Other Receivable |
28,407,127.98 |
7,811,685.91 |
11,273,341.59 |
|
Short-term Loan |
- |
300,000.00 |
1,400,000.00 |
|
Inventories |
10,888,607.82 |
23,840,056.40 |
8,674,090.08 |
|
Total Current
Assets |
39,488,795.69 |
32,097,634.35 |
21,551,289.57 |
|
|
|
|
|
|
Office Equipment |
127,433.38 |
182,680.11 |
176,434.66 |
|
Other Non-current Assets |
6,000.00 |
6,000.00 |
6,000.00 |
|
Total Assets
|
39,622,229.07 |
32,286,314.46 |
21,733,724.23 |
LIABILITIES
& SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Bank Overdraft &
Short-term Loan from Financial
Institution |
7,917,148.67 |
6,112,640.91 |
7,882,997.88 |
|
Trade Accounts & Other
Payable |
24,739,810.47 |
21,056,731.71 |
8,306,631.82 |
|
Pre-receipt Income from Goods |
- |
- |
565,866.00 |
|
Accrued Income Tax |
421,587.50 |
44,013.09 |
24,583.56 |
|
Total Current
Liabilities |
33,078,546.64 |
27,213,385.71 |
16,780,079.26 |
|
Total Liabilities |
33,078,546.64 |
27,213,385.71 |
16,780,079.26 |
|
|
|
|
|
|
Shareholders'
Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
value Authorized &
issued 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 |
2,543,682.43 |
1,072,928.75 |
953,644.97 |
|
Total Shareholders' Equity |
6,543,682.43 |
5,072,928.75 |
4,953,644.97 |
|
Total Liabilities
& Shareholders' Equity |
39,622,229.07 |
32,286,314.45 |
21,733,724.23 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
9,216,316.12 |
42,254,866.41 |
34,150,341.19 |
|
Other Income |
1,061,777.92 |
19,114.37 |
1,376,825.97 |
|
Total Revenues
|
92,278,094.04 |
42,273,980.78 |
35,527,167.16 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
86,236,052.81 |
38,841,723.16 |
32,954,730.36 |
|
Selling Expenses |
981,438.40 |
413,264.25 |
389,030.90 |
|
Administrative Expenses |
2,512,727.86 |
1,739,234.21 |
1,760,527.67 |
|
Other Expenses |
- |
546,202.70 |
- |
|
Total Expenses |
89,730,219.07 |
41,540,424.32 |
35,104,288.93 |
|
Profit / [Loss] before Financial
Costs & Income Tax |
2,547,874.97 |
733,556.46 |
422,878.23 |
|
Financial Costs |
[575,033.79] |
[549,559.59] |
[412,490.98] |
|
Profit /[Loss] before Income
Tax |
1,972,841.18 |
183,996.87 |
10,387.25 |
|
Income Tax |
[502,087.50] |
[64,713.09] |
[50,083.56] |
|
Net Profit /[Loss] |
1,470,753.68 |
119,283.78 |
[39,696.31] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.19 |
1.18 |
1.28 |
|
QUICK RATIO |
TIMES |
0.86 |
0.30 |
0.77 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
715.80 |
231.31 |
193.56 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.30 |
1.31 |
1.57 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
46.09 |
224.03 |
96.07 |
|
INVENTORY TURNOVER |
TIMES |
7.92 |
1.63 |
3.80 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
113.67 |
67.48 |
120.49 |
|
RECEIVABLES TURNOVER |
TIMES |
3.21 |
5.41 |
3.03 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
104.71 |
197.87 |
92.00 |
|
CASH CONVERSION CYCLE |
DAYS |
55.04 |
93.63 |
124.56 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
94.54 |
91.92 |
96.50 |
|
SELLING & ADMINISTRATION |
% |
3.83 |
5.09 |
6.29 |
|
INTEREST |
% |
0.63 |
1.30 |
1.21 |
|
GROSS PROFIT MARGIN |
% |
6.62 |
8.12 |
7.53 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
2.79 |
1.74 |
1.24 |
|
NET PROFIT MARGIN |
% |
1.61 |
0.28 |
(0.12) |
|
RETURN ON EQUITY |
% |
22.48 |
2.35 |
(0.80) |
|
RETURN ON ASSET |
% |
3.71 |
0.37 |
(0.18) |
|
EARNING PER SHARE |
BAHT |
36.77 |
2.98 |
(0.99) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.83 |
0.84 |
0.77 |
|
DEBT TO EQUITY RATIO |
TIMES |
5.06 |
5.36 |
3.39 |
|
TIME INTEREST EARNED |
TIMES |
4.43 |
1.33 |
1.03 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
115.87 |
23.73 |
|
|
OPERATING PROFIT |
% |
247.33 |
73.47 |
|
|
NET PROFIT |
% |
1,132.99 |
400.49 |
|
|
FIXED ASSETS |
% |
(30.24) |
3.54 |
|
|
TOTAL ASSETS |
% |
22.72 |
48.55 |
|
ANNUAL
GROWTH : IMPRESSIVE
An annual sales growth is 115.87%. Turnover has increased from THB
PROFITABILITY
: EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
6.62 |
Impressive |
Industrial Average |
0.61 |
|
Net Profit Margin |
1.61 |
Impressive |
Industrial Average |
0.03 |
|
Return on Assets |
3.71 |
Impressive |
Industrial Average |
0.89 |
|
Return on Equity |
22.48 |
Impressive |
Industrial Average |
4.08 |
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 6.62%. 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 1.61%, 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 3.71%, 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 22.48%, 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.
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 |
1.19 |
Satisfactory |
Industrial Average |
1.32 |
|
Quick Ratio |
0.86 |
|
|
|
|
Cash Conversion Cycle |
55.04 |
|
|
|
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 1.19 times in 2012, increased from 1.18 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 0.86 times in 2012,
increased from 0.3 times, by excluding inventory, the company may have problems
meeting current liabilities.
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 56 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE
: ACCEPTABLE
LEVERAGE
RATIO
|
Debt Ratio |
0.83 |
Acceptable |
Industrial Average |
0.77 |
|
Debt to Equity Ratio |
5.06 |
Risky |
Industrial Average |
3.43 |
|
Times Interest Earned |
4.43 |
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 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 4.44 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 0.83 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 |
715.80 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
2.30 |
Deteriorated |
Industrial Average |
34.63 |
|
Inventory Conversion Period |
46.09 |
|
|
|
|
Inventory Turnover |
7.92 |
Deteriorated |
Industrial Average |
89.31 |
|
Receivables Conversion Period |
113.67 |
|
|
|
|
Receivables Turnover |
3.21 |
Deteriorated |
Industrial Average |
44.32 |
|
Payables Conversion Period |
104.71 |
|
|
|
The company's Account Receivable Ratio is calculated as 3.21 and
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 224 days at the
end of 2011 to 46 days at the end of 2012. This represents a positive trend.
And Inventory turnover has increased from 1.63 times in year 2011 to 7.92 times
in year 2012.
The company's Total Asset Turnover is calculated as 2.3 times and 1.31
times in 2012 and 2011 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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
|
Key Areas |
Score |
Weight |
Weighted
Score |
|
LIQUIDITY RATIO |
1.78 |
25.00 |
44.50 |
|
ACTIVITY RATIO |
1.00 |
20.00 |
20.00 |
|
PROFITABILITY
RATIO |
4.00 |
25.00 |
100.00 |
|
LEVERAGE RATIO |
1.78 |
10.00 |
17.80 |
|
ANNUAL GROWTH |
3.20 |
20.00 |
64.00 |
|
Total Weight
(excluding - - Score) |
|
100.00 |
|
|
|
|
|
246.30 |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 62.12 |
|
|
1 |
Rs. 103.93 |
|
Euro |
1 |
Rs. 85.16 |
INFORMATION DETAILS
|
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.