MIRA
INFORM REPORT
|
Report Date : |
09.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
STAR ASIA [THAILAND] LTD. |
|
|
|
|
Registered Office : |
Room A, 19th Floor,
Bangkok Gems and Jewelry
Tower, 322/47 Surawong
Road, Suriyawongse, Bangrak,
Bangkok 10500 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.03.2013 |
|
|
|
|
Date of Incorporation : |
1993 |
|
|
|
|
Com. Reg. No.: |
0745536001900 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Importer, Distributor and Exporter of Gold and Diamond Jewelry Products |
|
|
|
|
No. of Employees : |
18 |
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 : |
Slow but correct |
|
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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
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
STAR ASIA
[THAILAND] LTD.
SUMMARY
BUSINESS ADDRESS : ROOM A, 19th FLOOR,
BANGKOK GEMS AND
JEWELRY TOWER,
322/47 SURAWONG ROAD,
SURIYAWONGSE, BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2267-1208-9
FAX : [66] 2267-1207
E-MAIL ADDRESS : kartik@starasia.co.th
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1993
REGISTRATION NO. : 0745536001900 [Former : SOR
KOR. 1003]
TAX ID NO. : 3011380734
CAPITAL REGISTERED : BHT.
19,000,000
CAPITAL PAID-UP : BHT.
19,000,000
SHAREHOLDER’S PROPORTION : THAI : 50.10%
FOREIGN :
49.90%
FISCAL YEAR CLOSING DATE : MARCH 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. KARTIK NAYANBHAI
SHAH, INDIAN
MANAGING DIRECTOR
NO. OF STAFF : 18
LINES OF BUSINESS : GOLD
AND DIAMOND JEWELRY
PRODUCTS
IMPORTER, DISTRIBUTOR
AND EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The subject was
established on December
9, 1993 as
a private limited
company under the
name style STAR
ASIA [THAILAND] LTD.,
by Thai and
foreign groups, with the
business objective to
import, distribute and
export gold and
diamond jewelry products.
It currently employs
18 staff.
The subject’s registered
address is Room A, 19th Flr., Bangkok Gems
and Jewelry Tower,
322/47 Surawong Road,
Suriyawongse, Bangrak, Bangkok
10500, and this
is the subject’s
current operation address.
THE BOARD
OF DIRECTOR
Mr. Kartik Nayanbhai Shah
AUTHORIZED PERSON
The above director
signs on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Kartik Nayanbhai Shah
is the Managing
Director.
He is Indian
nationality with the
age of 43 years
old.
BUSINESS OPERATIONS
The subject is
engaged in importing
and distributing various
kinds of loose diamonds, e.g. marquise, round including
gold and diamond jewelry sets
with gemstones.
The subject also
provides design and
export products to
overseas. The exported
products have been
supplied by local
manufactures.
PURCHASE
The products are
purchased from suppliers both domestic
and overseas, mainly in
India, Hong Kong,
Belgium and South
Africa.
SALES
The products are
sold to customers
both local and overseas
mainly in India,
Hong Kong, Malaysia, Singapore, Republic of
China, United Arab Emirate, U.S.A. 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
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
L/C at sight
or T/T.
Exports are against
T/T.
BANKING
Bangkok Bank Public
Co., Ltd.
EMPLOYMENT
The subject currently
employs 18 staff.
LOCATION DETAILS
The premise is
rented for administrative office
at the heading
address. Premise is
located in a
prime commercial area.
COMMENT
The subject had
outstanding business in
the past year.
Its sales has
grown significantly in
the first half
of the year 2013, however
market slowdown has
seen since the second half
of year especially
in domestic market, while
export of the products
remains still.
FINANCIAL INFORMATION
The capital was
registered at Bht.
3,000,000 divided into
30,000 shares of
Bht. 100 each.
The capital was
increased later as
following:
Bht. 4,000,000
on August 10,
1995
Bht. 8,000,000
on March 28,
2001
Bht. 11,000,000
on June 7,
2001
Bht. 19,000,000
on December 27,
2001
The latest registered
capital was increased
to Bht. 19,000,000 divided
into 190,000 shares
of Bht. 100
each with fully
paid.
THE SHAREHOLDERS
LISTED WERE
[as at
July 29, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Star Holding Limited Nationality: U.A.E Address : SH
Road, Zawed, Dubai,
United Arab
Emirate |
53,200 |
28.00 |
|
Mr. Kartik Nayanbhai Shah Nationality: Indian Address : 64-66
Rama 4 Rd.,
Thungmahamek, Sathorn, Bangkok |
38,000 |
20.00 |
|
Mr. Tuengthong Khamchan Nationality: Thai Address : 12
Moo 2, Pathum,
Muang,
Ubonratchathani |
31,600 |
16.63 |
|
Ms. Sudjai Chantapinij Nationality: Thai Address : 80
Moo 2, Photak,
Muang, Nakornpanom |
31,600 |
16.63 |
|
Ms. Saowanit Promfai Nationality: Thai Address : 39/21
Moo 1 4, Ladprao, Bangkok |
31,600 |
16.63 |
|
Mr. Birju Ranjibhai Nationality: Indian Address : 64-66
Rama 4 Rd.,
Thungmahamek,
Sathorn, Bangkok |
3,600 |
1.90 |
|
Mr. Anake Thamrongvarangkul Nationality: Thai Address : 72/27
Rama 3 Rd.,
Chongnonsee,
Yannawa, Bangkok |
400 |
0.21 |
Total Shareholders : 7
Share Structure [as
at July 29,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
95,200 |
50.10 |
|
Foreign-Foreign |
3 |
94,800 |
49.90 |
|
Total |
7 |
190,000 |
100.00 |
NAME OF
AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Mr. Pinij Charoenjai No.
1176
BALANCE SHEET [BAHT]
The latest financial figures published
as at March
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
310,451.73 |
154,194.75 |
76,638.74 |
|
Trade Accounts Receivable
|
198,458,187.13 |
174,215,712.62 |
138,232,737.49 |
|
Inventories |
252,577,820.98 |
178,675,301.18 |
159,182,316.67 |
|
Other Current Assets
|
760,783.83 |
496,861.41 |
163,532.10 |
|
|
|
|
|
|
Total Current Assets
|
452,107,243.67 |
353,542,069.96 |
297,655,225.00 |
|
|
|
|
|
|
Fixed Assets |
182,983.75 |
8,863.00 |
14,098.40 |
|
Other Non-current Assets |
1,000,680.50 |
855,000.00 |
855,000.00 |
|
Total Assets |
453,290,907.92 |
354,405,932.96 |
298,524,323.40 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Short-term Loan from Financial Institutions |
57,510,795.58 |
43,247,315.40 |
22,787,790.11 |
|
Trade Accounts Payable
|
297,377,498.18 |
236,673,621.67 |
206,449,451.95 |
|
Accrued Income Tax |
5,316,282.78 |
1,896,711.48 |
1,355,037.02 |
|
Other Current Liabilities |
1,353,544.26 |
674,779.05 |
434,933.12 |
|
|
|
|
|
|
Total Current Liabilities |
361,558,120.80 |
282,492,427.60 |
231,027,212.20 |
|
Total Liabilities |
361,558,120.80 |
282,492,427.60 |
231,027,212.20 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 190,000 shares |
19,000,000.00 |
19,000,000.00 |
19,000,000.00 |
|
|
|
|
|
|
Capital Paid |
19,000,000.00 |
19,000,000.00 |
19,000,000.00 |
|
Retained Earning Unappropriated [Deficit] |
72,732,787.12 |
52,913,505.36 |
48,497,111.20 |
|
Total Shareholders' Equity |
91,732,787.12 |
71,913,505.36 |
67,497,111.20 |
|
Total Liabilities & Shareholders' Equity |
453,290,907.92 |
354,405,932.96 |
298,524,323.40 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
499,251,200.80 |
483,632,643.98 |
343,581,570.71 |
|
Other Income |
17,055,521.25 |
52,197.63 |
6,166,222.59 |
|
Total Revenues |
516,306,722.05 |
483,684,841.61 |
349,747,793.30 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
472,428,474.88 |
461,247,957.96 |
326,103,515.62 |
|
Selling and Administrative Expenses |
15,826,745.41 |
15,383,372.48 |
12,664,556.45 |
|
Total Expenses |
488,255,220.29 |
476,631,330.44 |
338,768,072.07 |
|
|
|
|
|
|
Profit / [Loss] before Financial Cost & Income
Tax |
28,051,501.76 |
7,053,511.17 |
10,979,721.23 |
|
Financial Cost |
[1,995,937.22] |
[740,405.53] |
[870,209.27] |
|
Income Tax |
[6,236,282.78] |
[1,896,711.48] |
[3,042,537.02] |
|
|
|
|
|
|
Net Profit / [Loss] |
19,819,281.76 |
4,416,394.16 |
7,066,974.94 |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.25 |
1.25 |
1.29 |
|
QUICK RATIO |
TIMES |
0.55 |
0.62 |
0.60 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
2,728.39 |
54,567.60 |
24,370.25 |
|
TOTAL ASSETS TURNOVER |
TIMES |
1.10 |
1.36 |
1.15 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
195.14 |
141.39 |
178.17 |
|
INVENTORY TURNOVER |
TIMES |
1.87 |
2.58 |
2.05 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
145.09 |
131.48 |
146.85 |
|
RECEIVABLES TURNOVER |
TIMES |
2.52 |
2.78 |
2.49 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
229.75 |
187.29 |
231.07 |
|
CASH CONVERSION CYCLE |
DAYS |
110.48 |
85.59 |
93.94 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
94.63 |
95.37 |
94.91 |
|
SELLING & ADMINISTRATION |
% |
3.17 |
3.18 |
3.69 |
|
INTEREST |
% |
0.40 |
0.15 |
0.25 |
|
GROSS PROFIT MARGIN |
% |
8.79 |
4.64 |
6.88 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
5.62 |
1.46 |
3.20 |
|
NET PROFIT MARGIN |
% |
3.97 |
0.91 |
2.06 |
|
RETURN ON EQUITY |
% |
21.61 |
6.14 |
10.47 |
|
RETURN ON ASSET |
% |
4.37 |
1.25 |
2.37 |
|
EARNING PER SHARE |
BAHT |
104.31 |
23.24 |
37.19 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.80 |
0.80 |
0.77 |
|
DEBT TO EQUITY RATIO |
TIMES |
3.94 |
3.93 |
3.42 |
|
TIME INTEREST EARNED |
TIMES |
14.05 |
9.53 |
12.62 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
3.23 |
40.76 |
|
|
OPERATING PROFIT |
% |
297.70 |
(35.76) |
|
|
NET PROFIT |
% |
348.77 |
(37.51) |
|
|
FIXED ASSETS |
% |
1,964.58 |
(37.13) |
|
|
TOTAL ASSETS |
% |
27.90 |
18.72 |
|
ANNUAL GROWTH : EXCELLENT
An annual sales growth is 3.23%. Turnover has increased from THB
PROFITABILITY :
EXCELLENT
PROFITABILITY
RATIO
|
Gross Profit Margin |
8.79 |
Impressive |
Industrial Average |
3.01 |
|
Net Profit Margin |
3.97 |
Impressive |
Industrial Average |
0.58 |
|
Return on Assets |
4.37 |
Impressive |
Industrial Average |
3.55 |
|
Return on Equity |
21.61 |
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 8.79%. 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 3.97%, 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 4.37%, 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 21.61%, 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 : RISKY
LIQUIDITY RATIO
|
Current Ratio |
1.25 |
Satisfactory |
Industrial Average |
1.60 |
|
Quick Ratio |
0.55 |
|
|
|
|
Cash Conversion Cycle |
110.48 |
|
|
|
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 1.25 times in 2013, same
figure as in 2012, 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 0.55 times in 2013,
decreased from 0.62 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 111 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
ACCEPTABLE
LEVERAGE RATIO
|
Debt Ratio |
0.80 |
Acceptable |
Industrial Average |
0.73 |
|
Debt to Equity Ratio |
3.94 |
Risky |
Industrial Average |
2.73 |
|
Times Interest Earned |
14.05 |
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 14.06 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 0.8 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 Stable
ACTIVITY : ACCEPTABLE
ACTIVITY RATIO
|
Fixed Assets Turnover |
2,728.39 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
1.10 |
Deteriorated |
Industrial Average |
6.16 |
|
Inventory Conversion Period |
195.14 |
|
|
|
|
Inventory Turnover |
1.87 |
Deteriorated |
Industrial Average |
12.03 |
|
Receivables Conversion Period |
145.09 |
|
|
|
|
Receivables Turnover |
2.52 |
Deteriorated |
Industrial Average |
8.23 |
|
Payables Conversion Period |
229.75 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.52 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 increased from 141 days at the
end of 2012 to 195 days at the end of 2013. This represents a negative trend.
And Inventory turnover has decreased from 2.58 times in year 2012 to 1.87 times
in year 2013.
The company's Total Asset Turnover is calculated as 1.1 times and 1.36
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
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.24 |
|
|
1 |
Rs.102.17 |
|
Euro |
1 |
Rs.84.82 |
INFORMATION DETAILS
|
Report Prepared
by : |
NNA |
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.