MIRA INFORM REPORT
|
Report Date : |
13.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
PRANDA JEWELRY
PUBLIC COMPANY LIMITED |
|
|
|
|
Formerly Known as : |
Pranda Jewelry
Co., Ltd. |
|
|
|
|
Registered Office : |
28 Soi Bangna-Trad 28, Bangna-Trad Rd, K.M. 2.3,
Bangna, Bangkok 10260 |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Year of Establishment : |
1972 |
|
|
|
|
Com. Reg. No.: |
0107537001986 [Former
: BOR MOR JOR. 445] |
|
|
|
|
Legal Form : |
Public Limited Company |
|
|
|
|
Line of Business : |
· engaged in manufacturing of genuine jewelry from silver and gold with BOI promotion · Subject main product line is fine-cut colored gemstones and diamonds designed with gold or silver settings |
|
|
|
|
No of Employees : |
3,770 |
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 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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
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 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 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.
|
Source : CIA |
Company
name
PRANDA JEWELRY
PUBLIC COMPANY LIMITED
SUMMARY
BUSINESS
ADDRESS : 28
SOI BANGNA-TRAD 28, BANGNA-TRAD
ROAD,
K.M.
2.3, BANGNA, BANGKOK
10260, THAILAND
TELEPHONE : [66]
2769-9999
FAX :
[66] 2769-9998
E-MAIL ADDRESS : prapee@pranda.co.th
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED : 1972
REGISTRATION
NO. : 0107537001986 [Former
: BOR MOR JOR. 445]
TAX
ID NO. : 3101300246
CAPITAL
REGISTERED : BHT.
410,000,000
CAPITAL
PAID-UP : BHT.
409,529,000
FISCAL
YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PUBLIC LIMITED
COMPANY
EXECUTIVE : MR. PRAMOTE TIASUWAN,
THAI
MANAGING DIRECTOR
NO.
OF STAFF : 3,770
LINES OF
BUSINESS : GENUINE
JEWELRY PRODUCTS
MANUFACTURER, EXPORTER
& DISTRIBUTOR
CORPORATE
PROFILE
OPERATING
TREND : STABLE
PRESENT
SITUATION : OPERATING
NORMALLY
REPUTATION : GOOD FOR
NORMAL BUSINESS ENGAGEMENT
MANAGEMENT
STANDARD : MANAGEMENT
WITH FAIR PERFORMANCE
HISTORY
The
subject was originally
formed by Tiasuwan
family in 1972
under the name Pranda Design
Co., Ltd. The
subject continued to
grow about 30
per cent per
year and had
been moved to
larger premises couple
times before building
up the new
building. On April
27, 1984, its
name was changed
to Pranda Jewelry
Co., Ltd. and
was listed on the Stock
Exchange of Thailand
on July 6,
1990. Its status
was eventually converted to a
public limited company under the name
style PRANDA JEWELRY PUBLIC COMPANY LIMITED
on June 3,
1994. It currently
employs 3,770 staff.
The
subject has also been presented with the Prime Minister’s Export Award for
Outstanding Performance as
the Best Exporter
1995, and received
the promotional privilege
from the Board
of Investment [BOI].
At
present, Pranda group
is the largest
manufacturer of color
gemstone jewelry in
the world, with
the production capacity
of more than
10 million pieces
of jewelry set per
annum.
Pranda group
operates its production
with 7 facilities
in four countries as the
followings:
- Thailand facilities, consists
of Pranda Jewelry
Public Company Limited [Bangkok and
Nakornratchasima],
Crystaline Co., Ltd. [Bangkok and
Nakornratchasima]
- Indonesia facility, P.T. Pranda SCL.,
Indonesia.
- Vietnam facility, Pranda
Vietnam Co., Ltd.
- Germany facility, Pranda & Kroll GmbH
Co. KG.
The subject has
also five overseas
distributors: Pranda North
America, Crystaline North
America, Pranda U.K.,
H. Gringoire S.A.R.L.
[Paris], and Pranda
Acceptance Sdn Bhd
[Malaysia]. The local
market is served
by Prima Gold
and LG-Pranda, as
well as has
set up subsidiaries,
which are proficient
in retail management,
to manage its
owns retail outlet
and franchise businesses
throughout Asia and
Middle East. These
subsidiaries are located
in Thailand, Indonesia,
Vietnam and Republic
of China.
The subject’s registered
address was initially
located at 333
Soi Rungsang, Bangna-Trad
Rd, K.M. 2.3,
Bangna, Bangkok 10260.
In 2008, the
registered address was
changed to 28
Soi Bangna-Trad 28,
Bangna-Trad Rd, K.M.
2.3, Bangna, Bangkok
10260, by the
Bangna District Office,
and this is
the company’s current
operation address.
THE BOARD OF DIRECTORS
|
Name |
|
Nationality
|
Age
|
|
|
|
|
|
|
Mr.
Prida Tiasuwan |
:
Chairman |
Thai |
65 |
|
Mrs.
Sunanta Tiasuwan |
[x] |
Thai |
64 |
|
Mrs.
Prapee Sorakraikitikul |
[x] |
Thai |
67 |
|
Mrs.
Panidda Tiasuwan |
[x] |
Thai |
70 |
|
Mr.
Pramote Tiasuwan |
[+] |
Thai |
63 |
|
Mrs.
Pranee Khunprasert |
[+] |
Thai |
61 |
|
Mr.
Veerachai Tantikul |
|
Thai |
71 |
|
Mr.
Chamnong Watanagase |
|
Thai |
67 |
|
Mrs. Rawittha Pongnuchit |
|
Thai |
64 |
|
Ms. Pittaya Tiasuwan |
[x] |
Thai |
59 |
AUTHORIZED
PERSON
One
of the mentioned
directors [x] can
jointly sign with
one of the
directors [+] on
behalf of the
subject with the
company’s affixed.
MANAGEMENT
Mr. Pramote Tiasuwan is the Managing
Director [Manufacturing] /Finance
Director/Nomination and Remuneration
Director.
He
is Thai nationality
with the age
of 63 years
old.
Mrs.
Prapee Sorakraikitikul is
the Finance Director/ Nomination and
Remuneration
Director.
She
is Thai nationality
with the age
of 67 years
old.
Mrs.
Pranee Khunprasert is
the Managing Director [Marketing]/ Finance Director/
Nomination
and Remuneration Director.
She
is Thai nationality
with the age
of 61 years
old.
Mrs. Sunanta
Tiasuwan is the
Chair of Group
Finance Committee/
Nomination and Remuneration
Director.
She
is Thai nationality
with the age
of 64 years
old.
Mrs.
Panidda Tiasuwan is
the Nomination &
Remuneration Director.
She
is Thai nationality
with the age
of 70 years
old.
Ms.
Pittaya Tiasuwan is
the Deputy Managing Director [Manufacturing]/
Finance
Director.
She
is Thai nationality
with the age
of 59 years old.
Mr.
Decha Nuntanajaroenkul is
the Deputy Managing Director [Marketing]/
Finance
Director.
He
is Thai nationality.
Mr. Chartchai Teekaveerakit is
the Group Corporate
Values Director.
He
is Thai nationality.
Mr. Chanat
Sorakraikitikul is the
Finance Director.
He
is Thai nationality.
BUSINESS
OPERATIONS
The
subject is engaged
in manufacturing of
genuine jewelry from
silver and gold
with BOI promotion. The main product line is fine-cut colored
gemstones and diamonds
designed with gold
or silver settings.
Leading products produced
by Pranda are
rings, earrings, brooches,
lockets, necklaces and
bracelets bearing the
“PRANDA” trademark.
Pranda’s products
has categorized into 2 groups
as follows:
1.1 Own Brand
Manufacturing [OBM] is
divided into 2
categories: precious products
and lifestyle products.
The major brands
are:
- PRIMA GOLD : 99.9%
pure gold jewelry,
primarily for Asia
and Middle East
- JULIA : the diamond
with 18k white
gold jewelry, primarily for
Indonesian market
- MERII : the fashion
jewelry with Cubic
Zirconia, primarily for
Thai market
- CAI : silver fashion
jewelry, primarily for
European market
- ARIVA : silver fashion
jewelry, primarily for
US market
1.2
Original
Design manufacturing [ODM]
Pranda has
joined with its
customers to design
and manufacture the
jewelry. The subject
also channels its
products through direct
television, department stores,
chain stores, catalogs,
and website to its customers
in U.S.A., Germany,
U.K., France, Spain,
Australia, Russia and
Japan.
At present, Pranda Group’s
structure is divided
into 4 main
bases, consist of
production base, design
and product development
base, distribution base
and brand development
base.
BRAND
NAMES
Own
brand:
“Prima Gold”, “Prima
Diamond”, “Prima Art”,
“H.Gringoire”, “Julia”
Lifestyle
products brand:
“ESSE”,
“Cai Jewel”, “Cai
Men”, “Merii”, “Baldessarini”, “V&A”,
“Blossom”, “Ariva”
PRODUCTIONS
Approximately 8
million pieces per
year
IMPORT
[COUNTRIES]
60% of raw materials such as gold,
diamonds and gemstone
are imported from
Switzerland, Belgium,
Singapore, Italy, United
Kingdom, South Africa,
India and Hong Kong,
the remaining 40% is
purchased from local
suppliers.
EXPORT
[COUNTRIES]
90% of
its products are
exported to United
States of America,
Japan, Indonesia, Republic
of China Canada,
Australia, United Kingdom,
France, Middle East
and Asian Pacific
Region with over
40 countries. The
remaining 10% is
sold locally.
For
retail business, the
subject currently has
over 200 retail
shops, which invest
through their subsidiaries
both in Thailand
and Asian countries,
namely Prima Gold
International Co., Ltd.,
PT Pranda Marketing Indonesia, Pranda
Trading [Shenzhen] Ltd.,
Republic of China.,
Pranda UK Ltd.,
and Pranda Vietnam
Co., Ltd.
MAJOR
CUSTOMERS
|
Name |
Country |
|
|
|
|
Pranda
North America Inc. |
: United
States of America |
|
H.
Gringoire S.A.R.L. |
: France |
|
Pranda
U.K. Ltd. |
: United
Kingdom |
|
Pranda
& Kroll Gmbh &
Co Kg |
: Germany |
|
Pranda
Jewelry Pvt. Ltd. |
: India |
REVENUE STRUCTURE [Company
and Subsidiaries]
|
|
2013 |
2012 |
||
|
|
Million baht |
% |
Million baht |
% |
|
Revenue from oversea
market |
2,825 |
77.42 |
3,043 |
72.85 |
|
Revenue from domestic
market |
824 |
22.58 |
1,134 |
27.15 |
|
Total |
3,649 |
100.00 |
4,177 |
100.00 |
SUBSIDIARIES AND
ASSOCIATED COMPANIES [holding over
50%]
|
Company |
Business Type |
% of
Investment |
|
Domestic Subsidiaries |
|
|
|
Crystaline
Co., Ltd. |
Manufacturer and
Exporter of
Costume Jewelry |
96 |
|
Primagold
International Co., Ltd. |
Distribution of
Prima Gold, Prima
Diamond and Eighteen K |
100 |
|
Pranda
Lodging Co., Ltd. |
Property |
83 |
|
|
|
|
|
Foreign
Subsidiaries: |
|
|
|
Pranda
North America Inc. |
Distribution of
Gold Accessories in
the U.S.A. and
Canada |
100 |
|
H.
Gringoire S.A.R.L. |
Distribution of
Gold Jewelry in
France
under Trade Mark
H. Gringoire |
100 |
|
Pranda
U.K. Limited |
Distribution of
“Crystalina” Gold,
Costume Jewelry in U.K. &
Europe |
100 |
|
Pranda
Vietnam Co., Ltd. |
Manufacturer, Distributor
of
Gemstone Accessories in
Vietnam |
100 |
|
Pranda
Singapore Pte. Limited |
Venture
in Malaysia &
Indonesia |
100 |
|
Pranda & Kroll GmbH & Co. KG. |
Producer
and distributor of
fine
jewelry |
75 |
|
Pranda
Jewelry Pvt. Ltd. [India] |
Distributor of
fine jewelry in
India |
51 |
|
KSV
Brand GmbH |
Distributor of
jewelry products in
Germany |
51 |
|
PT
Pranda Marketing Indonesia |
Jewelry
retail business |
55 |
|
Pranda
Trading [Shenzhen] Ltd. |
Jewelry
retail business in
Republic of
China |
100 |
|
etc. |
|
|
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
are by cash
or on the
credits term of
30-60 days.
Purchasing
terms are on
the credits term
of 30-60-90 days.
Imports
are by L/C on
the credits term
of 60-120 days.
Exports
are against L/C
at sight and
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
[Bangna Branch :
94/2 Bangna-Trad Rd.,
Bangna, Bangkok]
Kasikornbank
Public Co., Ltd.
[Bangna Branch : 3212-3218
Bangna-Trad Rd., Bangna,
Bangkok]
TMB
Bank Public Co.,
Ltd.
[Bangna Branch :
109 Bangna-Trad Rd.,
Bangna, Bangkok]
Krung
Thai Bank Public
Co., Ltd.
[Head Office :
35 Sukhumvit Rd.,
Klongtoeynua, Watana, Bangkok
10110]
Deutsche
Bank AG.
[Bangkok Branch :
208 Wireless Rd.,
Lumpini, Pathumwan, Bangkok]
EMPLOYMENT
The
subject employs approximately
3,770 staff comprising office
staff, sales staff and factory
workers.
LOCATION
DETAILS
The
premise is owned
for operating office,
warehouse and factory
I on approximately
of 26 rais of
land or 41,600 square meters
at the heading
address in residential/ commercial area.
Factory
II is located
at 332-333 Suranaree
Industrial Estate, Nakornrachasima 30000, Tel: [66]
44 212-593-4, Fax: [66]
44 334-718
COMMENT
The
subject is the country’s leading jewelry manufacturer and exporter had embarked
on business four decades ago as an
original equipment manufacturer (OEM), producing jewelry according to
orders and designs from international
distributors of name brands, such
as Zandra Rhodes, H. Gringoire and Batik silver. Today with two plants in Thailand and one each in
Indonesia, Vietnam and China, the subject is more likely an original design
manufacturer (ODM). To be an ODM
means Pranda designs
its own products, and
clients could choose to
place orders based
on what is available by the firm.
The
establishment of the
strong foundation of PRANDA
Jewelry Public Company
Limited has expanded
to 42 years,
with high quality
mass manufacturing and
adaptive production set-up.
With the strong
foundation, the company is
confident that it can
move forward to be
the “World Class
Jewelry Brand Company”
in the future.
With the
strong foundation the
company is confident that
it can overcome
the difficulties of economic
sluggish.
FINANCIAL
INFORMATION
The
capital was initially
registered at Bht.
25 million.
The
capital was increased
later as followings:
Bht. 45.5
million on May
8, 1985
Bht. 48.6
million on January
25, 1988
Bht. 52.73
million on August
5, 1988
Bht. 66.0
million on August
3, 1989
Bht. 68.0
million on April
11, 1990
Bht. 150.0 million
on October 31,
1991
Bht. 300.0 million
in November, 1994
Bht. 400.0 million
on September 21,
2001
Bht. 410.0 million
on September 4,
2009
The
latest registered capital
was increased to
Bht. 410 million,
divided into 410
million shares of
Bht. 1 each
with the current
capital paid-up of
Bht. 409,529,000.
MAIN
SHAREHOLDERS : [as at
March 18, 2014] at
Bht. 409,529,000 of
capitalization.
|
NAME |
HOLDING |
% |
|
|
|
|
|
Thai
NVDR Co., Ltd. |
53,496,800 |
13.06 |
|
Mr.
Prida Tiasuwan |
21,996,420 |
5.37 |
|
Citibank
Nominees Singapore Pte.
Ltd. |
18,309,200 |
4.47 |
|
Ms. Pithaya Tiasuwan |
17,930,960 |
4.38 |
|
Mrs.
Panidda Tiasuwan |
16,322,660 |
3.99 |
|
Pranda
Holding Co., Ltd. |
14,442,900 |
3.53 |
|
State
Street Bank and
Trust Company |
12,732,300 |
3.11 |
|
Goldman
Sachs & Co |
11,644,700 |
2.84 |
|
The
Bank of New
York Mellon |
10,288,300 |
2.51 |
|
Mrs.
Prapee Sorakraikitikul |
9,922,260 |
2.42 |
|
Mrs.
Pranee Khunprasert |
9,896,860 |
2.42 |
|
Other
Shareholders |
212,545,640 |
51.90 |
Total Shareholders : 4,464
NAME OF AUDITOR &
CERTIFIED PUBLIC ACCOUNTANT NO.:
Mrs. Chonlaros Suntiasvaraporn No.
4523
Ernst & Young Office
Limited
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 |
92,648,965 |
389,733,182 |
207,069,570 |
|
Trade and other
receivable |
1,055,755,320 |
987,157,667 |
1,194,827,620 |
|
Short-term loans to related parties |
6,689,700 |
53,704,940 |
52,415,660 |
|
Current portion of long-term loans
to related parties |
33,379,000 |
14,649,930 |
43,866,780 |
|
Inventories |
863,306,981 |
915,781,465 |
838,910,318 |
|
Other current assets |
26,427,141 |
22,258,253 |
19,375,521 |
|
Total Current Assets
|
2,078,207,107 |
2,383,285,437 |
2,356,465,469 |
|
Non-Current Assets |
|
|
|
|
Investment in convertible debentures issued by subsidiary |
32,022,900 |
34,079,100 |
36,949,500 |
|
Investments in subsidiary |
953,195,404 |
705,713,730 |
687,348,431 |
|
Other long-term investments |
23,201,847 |
9,815,332 |
9,778,398 |
|
Advances for investment |
5,643,142 |
4,929,725 |
5,118,431 |
|
Amounts due from related party |
50,027,504 |
48,899,004 |
49,247,925 |
|
Long-term loans to related parties |
170,900,480 |
292,188,920 |
277,934,440 |
|
Investment properties |
489,603,099 |
490,229,931 |
490,858,481 |
|
Property, plant and
equipment, net |
549,962,664 |
368,729,543 |
300,703,127 |
|
Other intangible assets |
19,916,442 |
17,271,723 |
13,790,190 |
|
Deferred tax assets |
61,343,134 |
31,449,169 |
- |
|
Other non-current assets |
668,446 |
1,232,986 |
1,964,695 |
|
Total Non-Current Assets |
2,356,485,062 |
2,004,539,163 |
1,873,693,618 |
|
Total Assets |
4,434,692,169 |
4,387,824,600 |
4,230,159,087 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Bank overdrafts short-term
loans from financial institutions |
240,000,000 |
- |
270,000,000 |
|
Trade and other payables |
519,900,931 |
787,262,641 |
855,781,462 |
|
Current portion of
long-term loans |
105,310,000 |
69,800,000 |
25,000,000 |
|
Income tax payable |
- |
8,022,297 |
18,076,797 |
|
Other Current Liabilities |
15,418,774 |
33,490,226 |
15,443,852 |
|
Total Current Liabilities |
880,629,705 |
898,575,164 |
1,184,302,111 |
|
Non-Current Liabilities |
|
|
|
|
Long-term loans-net of current portion |
300,423,100 |
269,110,000 |
50,110,000 |
|
Provision for long-term employee benefits |
158,585,002 |
150,072,141 |
137,763,155 |
|
Total Liabilities |
1,339,637,807 |
1,317,757,305 |
1,372,175,266 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
Share capital |
|
|
|
|
Registered |
|
|
|
|
410,000,000 ordinary
shares of Baht 1 each |
410,000,000 |
410,000,000 |
410,000,000 |
|
Issued and
fully paid-up 409,144,800 ordinary
shares of Baht 1 each [2012 : 406,282,554 ordinary
shares of Baht 1
each [2011 : 403,331,754
ordinary shares of
Baht 1 each |
409,144,800 |
406,282,554 |
403,331,754 |
|
Share premium |
786,086,643 |
780,362,151 |
774,460,551 |
|
Unrelated gain |
|
|
|
|
Revaluation surplus
on land |
|
|
|
|
Retained earnings |
|
|
|
|
Appropriated - statutory reserve |
41,000,000 |
41,000,000 |
41,000,000 |
|
Unappropriated |
1,858,822,919 |
1,842,422,590 |
1,639,191,516 |
|
Total Shareholders' Equity |
3,095,054,362 |
3,070,067,295 |
2,857,983,821 |
|
Total Liabilities &
Shareholders' Equity |
4,434,692,169 |
4,387,824,600 |
4,230,159,087 |
PROFIT
& LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales |
2,703,282,571 |
3,125,120,504 |
3,133,546,826 |
|
Other income |
|
|
|
|
Interest income |
30,416,686 |
40,831,129 |
36,320,584 |
|
Gain on
exchange |
106,105,222 |
11,546,210 |
30,152,236 |
|
Others |
66,266,834 |
58,561,183 |
63,361,167 |
|
Total Revenues |
2,906,071,313 |
3,236,059,026 |
3,263,380,813 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of sales
|
2,209,566,273 |
2,303,894,706 |
2,326,286,920 |
|
Selling expenses |
92,065,574 |
80,499,904 |
75,519,186 |
|
Administrative expenses |
303,732,567 |
370,817,146 |
400,131,453 |
|
Other expenses |
|
|
|
|
Impairment loss on investment in subsidiaries |
68,731,399 |
21,980,407 |
- |
|
Reversal allowance
for loss in impairment of investment
properties |
- |
- |
[57,635,692] |
|
Total Expenses |
2,674,095,813 |
2,777,192,163 |
2,744,301,867 |
|
Income before financial
cost and income tax expenses |
231,975,500 |
458,866,863 |
519,078,946 |
|
Financial cost |
[41,000,588] |
[32,127,800] |
[25,740,644] |
|
Income before tax
[expenses] |
190,974,912 |
426,739,063 |
493,338,302 |
|
Tax income [expenses] |
[28,757,544] |
[11,186,359] |
[52,199,379] |
|
Net Income for
the year |
219,732,456 |
415,552,704 |
441,138,923 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
2.36 |
2.65 |
1.99 |
|
QUICK RATIO |
TIMES |
1.35 |
1.61 |
1.27 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
4.92 |
8.48 |
10.42 |
|
TOTAL ASSETS TURNOVER |
TIMES |
0.61 |
0.71 |
0.74 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
142.61 |
145.08 |
131.63 |
|
INVENTORY TURNOVER |
TIMES |
2.56 |
2.52 |
2.77 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
142.55 |
115.30 |
139.18 |
|
RECEIVABLES TURNOVER |
TIMES |
2.56 |
3.17 |
2.62 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
85.88 |
124.72 |
134.27 |
|
CASH CONVERSION CYCLE |
DAYS |
199.28 |
135.66 |
136.53 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
81.74 |
73.72 |
74.24 |
|
SELLING & ADMINISTRATION |
% |
14.64 |
14.44 |
15.18 |
|
INTEREST |
% |
1.52 |
1.03 |
0.82 |
|
GROSS PROFIT MARGIN |
% |
25.77 |
29.83 |
29.91 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
8.58 |
14.68 |
16.57 |
|
NET PROFIT MARGIN |
% |
8.13 |
13.30 |
14.08 |
|
RETURN ON EQUITY |
% |
7.10 |
13.54 |
15.44 |
|
RETURN ON ASSET |
% |
4.95 |
9.47 |
10.43 |
|
EARNING PER SHARE |
BAHT |
0.54 |
1.02 |
1.09 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.30 |
0.30 |
0.32 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.43 |
0.43 |
0.48 |
|
TIME INTEREST EARNED |
TIMES |
5.66 |
14.28 |
20.17 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(13.50) |
(0.27) |
|
|
OPERATING PROFIT |
% |
(49.45) |
(11.60) |
|
|
NET PROFIT |
% |
(47.12) |
(5.80) |
|
|
FIXED ASSETS |
% |
49.15 |
22.62 |
|
|
TOTAL ASSETS |
% |
1.07 |
3.73 |
|
ANNUAL GROWTH :
ACCEPTABLE
An annual sales growth is -13.5%. Turnover has decreased from THB 3,125,120,504.00
in 2012 to THB 2,703,282,571.00 in 2013. While net profit has decreased from
THB 415,552,704.00 in 2012 to THB 219,732,456.00 in 2013. And total assets has
increased from THB 4,387,824,600.00 in 2012 to THB 4,434,692,169.00 in 2013.
PROFITABILITY :
ACCEPTABLE
PROFITABILITY
RATIO
|
Gross Profit Margin |
25.77 |
Satisfactory |
Industrial
Average |
26.02 |
|
Net Profit Margin |
8.13 |
Impressive |
Industrial
Average |
4.78 |
|
Return on Assets |
4.95 |
Deteriorated |
Industrial
Average |
13.79 |
|
Return on Equity |
7.10 |
Deteriorated |
Industrial
Average |
25.22 |
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 25.77%. 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 8.13%, 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 4.95%.
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 7.1%.
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 |
2.36 |
Satisfactory |
Industrial
Average |
2.70 |
|
Quick Ratio |
1.35 |
|
|
|
|
Cash Conversion Cycle |
199.28 |
|
|
|
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 2.36 times in 2013, decreased from 2.65 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 1.35 times in 2013,
decreased from 1.61 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 200 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.30 |
Impressive |
Industrial
Average |
0.59 |
|
Debt to Equity Ratio |
0.43 |
Impressive |
Industrial
Average |
1.10 |
|
Times Interest Earned |
5.66 |
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 5.66 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 0.3 less than 0.5, most of the company's
assets are financed through equity.
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 |
4.92 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
0.61 |
Deteriorated |
Industrial
Average |
4.96 |
|
Inventory Conversion Period |
142.61 |
|
|
|
|
Inventory Turnover |
2.56 |
Deteriorated |
Industrial
Average |
11.41 |
|
Receivables Conversion Period |
142.55 |
|
|
|
|
Receivables Turnover |
2.56 |
Deteriorated |
Industrial
Average |
7.69 |
|
Payables Conversion Period |
85.88 |
|
|
|
The company's Account Receivable Ratio is calculated as 2.56 and 3.17 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 145 days at the
end of 2012 to 143 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 2.52 times in year 2012 to 2.56 times
in year 2013.
The company's Total Asset Turnover is calculated as 0.61 times and 0.71
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 Uptrend
Inventory Turnover Uptrend
Receivables Turnover Uptrend
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.
-
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 –
-
Gem & Jewellery Export Promotion Council in its
statistical data has shown the export of polished diamonds to have increase by
28 % in February 2013. Compared to $ 1.4 bn worth of polished diamond export in
February, 2012, India exported $ 1.84 billion worth of polished diamonds in
February 2013. A senior executive of GJEPC said, “Export of cut and polished
diamonds started falling month-wise after the imposition of 2 % of import duty
on the polished diamonds. But February, 2013 has given a new ray of hope to the
industry as the export of polished diamonds has actually increased by 28 %. It
means the industry is on the track of recovery and round tripping of
diamonds has stopped completely.” Demand has started coming from the US, the
UK, Japan and China. India’s polished diamond export is expected to cross $ 21
bn in 2013-14.
-
The banking sector has started exercising restraint
while following prudent risk management norms when lending money to gems and
jewellery sector. This follows the implementation of Basel III accord – a global
voluntary regulatory standard on bank capital adequacy, stress testing and
market liquidity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.33 |
|
UK Pound |
1 |
Rs.99.68 |
|
Euro |
1 |
Rs.80.30 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
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.