MIRA INFORM
REPORT
|
Report Date : |
10.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
DEE ZILVER CO.,
LTD. |
|
|
|
|
Registered Office : |
1283
Soi Charoenkrung 49,
Charoenkrung Road,
Suriyawongse, Bangrak,
Bangkok 10500, |
|
|
|
|
Country : |
Thailand |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
12.01.1999 |
|
|
|
|
Com. Reg. No.: |
0115542000150 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged
in manufacturing, distributing and
exporting various designs
of sterling silver
jewelry |
|
|
|
|
No. of Employees : |
50 |
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 – 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 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
DEE ZILVER
CO., LTD.
SUMMARY
BUSINESS
ADDRESS : 1283
SOI CHAROENKRUNG 49,
CHAROENKRUNG
ROAD, SURIYAWONGSE,
BANGRAK,
BANGKOK 10500,
THAILAND
TELEPHONE : [66] 2630-6724
FAX :
[66] 2235-9817
E-MAIL
ADDRESS : info@deezilver.com
deezilver@yahoo.com
REGISTRATION
ADDRESS : SAME
AS BUSINESS ADDRESS
ESTABLISHED
: 1999
REGISTRATION
NO. : 0115542000150
TAX
ID NO. : 3271165430
CAPITAL REGISTERED : BHT. 2,000,000
CAPITAL PAID-UP : BHT.
2,000,000
SHAREHOLDER’S PROPORTION : THAI : 100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL
STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE
: MR. LERTSIRI KIATTITHANOMKUL, THAI
MANAGING DIRECTOR
NO.
OF STAFF : 50
LINES
OF BUSINESS : STERLING SILVER
JEWELRY PRODUCTS
MANUFACTURER, 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 January 12, 1999
as a private
limited company under
the registered name
DEE ZILVER CO.,
LTD., by Thai groups, with
the business objective
to manufacture and
distribute various designs
of sterling silver
jewelry to both
domestic and international
markets. It currently
employs approximate 50
staff.
The
subject’s registered address
is 1283 Soi Charoenkrung
49, Charoenkrung Road, Suriyawongse,
Bangrak, Bangkok 10500, and
this is the
subject’s current operation
address.
THE
BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Lertsiri Kiattithanomkul |
|
Thai |
56 |
|
Mr. Chanawong Kiattithanomkul |
|
Thai |
57 |
|
Ms. Kanokrat Kiattithanomwong |
|
Thai |
33 |
AUTHORIZED PERSON
Anyone of the
above directors can
sign on behalf
of the subject
with company’s affixed.
MANAGEMENT
Mr. Lertsiri Kiattithanomkul is
the Managing Director.
He is Thai
nationality with the
age of 56
years old.
Ms. Kanokrat Kiattithanomkul is
the Sales and
Marketing Manager.
She is Thai
nationality with the
age of 33
years old.
BUSINESS OPERATIONS
The subject
is engaged in
manufacturing, distributing and
exporting various designs
of sterling silver
jewelry, e.g. rings,
earrings, bracelets, pendants,
necklace and etc.
PURCHASE
100%
of raw materials,
such as silver,
precious stones and
accessories are purchased
from local suppliers.
SALES
60% of the products is
exported to Hong Kong,
U.S.A., Republic of
China, India and
the countries in
Europe, the remaining
40% is sold
locally.
SUBSIDIARY AND AFFILIATED
COMPANY
The subject is
not found to
have any subsidiary
or affiliated company
here in Thailand.
LITIGATION
Bankruptcy and Receivership
There are no
litigation on bankruptcy
and receivership cases
filed against the
subject found at
Legal Execution Department
for the past
five years.
Others
There are no
legal suits filed
against the subject for
the past two
years.
CREDIT
Sales 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.
Exports are against
T/T.
BANKING
Bangkok
Bank Public Co.,
Ltd.
EMPLOYMENT
The
subject currently employs
approximate 50 staff.
LOCATION
DETAILS
The
premise is rented
for administrative office
at the heading
address. Premise is
located in commercial
area.
Factory
and warehouse are
located at 99/1
Moo 2, Putharaksa
Road, T. Taibanmai,
A. Muang,
Samutprakarn 10280.
COMMENT
The
subject had moderate
business in the past
several years. However,
growth has dramatically fallen
in accordance with
slow domestic consumption
and exports, which
has affected its
sales.
FINANCIAL
INFORMATION
The
capital was registered at Bht. 1,000,000
divided into 10,000 shares of
Bht. 100 each with
fully paid.
On
May 4, 2012,
the registered capital
was increased to
Bht. 2,000,000 divided
into 20,000 shares
of Bht. 100 each
with fully paid.
THE
SHAREHOLDERS LISTED WERE
: [as at
August 1, 2013]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Mr. Lertsiri Kiattithanomkul Nationality: Thai Address : 99
Moo 2, T. Taiban,
A. Muang,
Samutprakarn |
10,000 |
50.00 |
|
Mrs. Piansap Kunathamsiri Nationality: Thai Address : 341
Sirintorn Road, Bangbamru,
Bangplad, Bangkok |
8,000 |
40.00 |
|
Mr. Chanawong Kiattithanomkul Nationality: Thai Address : 99
Moo 2, T. Taiban,
A. Muang,
Samutprakarn |
1,000 |
5.00 |
|
Ms. Kanokrat Kiattithanomkul Nationality: Thai Address : 99
Moo 2, T. Taiban,
A. Muang,
Samutprakarn |
1,000 |
5.00 |
Total Shareholders : 4
Share Structure [as
at August 1,
2013]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
4 |
20,000 |
100.00 |
|
Foreign |
- |
- |
- |
|
Total |
4 |
20,000 |
100.00 |
NAME OF AUDITOR
& CERTIFIED PUBLIC
ACCOUNTANT NO. :
Mr. Boonlert Kerdsup No.
7829
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 |
407,061.16 |
23,282.36 |
629,015.44 |
|
Trade Accounts & Other Receivable |
1,114,404.28 |
985,262.36 |
1,158,241.44 |
|
Inventories |
4,244,354.00 |
4,226,887.00 |
3,281,103.00 |
|
Revenue Department
Receivable |
49,820.43 |
32,413.05 |
125,626.36 |
|
|
|
|
|
|
Total Current Assets
|
5,815,639.87 |
5,267,844.77 |
5,193,986.24 |
|
|
|
|
|
|
Fixed Assets |
501,625.66 |
603,630.81 |
831,809.80 |
|
Total Assets |
6,317,265.53 |
5,871,475.58 |
6,025,796.04 |
LIABILITIES &
SHAREHOLDERS' EQUITY [BAHT]
|
Current
Liabilities |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Trade Accounts Payable |
250,842.23 |
1,139,930.83 |
1,988,635.36 |
|
Accrued Expenses |
- |
- |
397,638.08 |
|
Accrued Income Tax |
77,624.94 |
123,604.92 |
56,660.64 |
|
Accrued Withholding Tax |
- |
- |
3,149.36 |
|
Other Current Liabilities |
44,835.57 |
453,385.29 |
- |
|
|
|
|
|
|
Total Current Liabilities |
373,302.74 |
1,716,921.04 |
2,446,083.44 |
|
Total Liabilities |
373,302.74 |
1,716,921.04 |
2,446,083.44 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 20,000 shares in 2012; 10,000
shares in 2011 & 2010 |
2,000,000.00 |
1,000,000.00 |
1,000,000.00 |
|
|
|
|
|
|
Capital Paid |
2,000,000.00 |
1,000,000.00 |
1,000,000.00 |
|
Retained Earning
-Unappropriated |
3,943,962.79 |
3,154,554.54 |
2,579,712.60 |
|
Total Shareholders' Equity |
5,943,962.79 |
4,154,554.54 |
3,579,712.60 |
|
Total Liabilities &
Shareholders' Equity |
6,317,265.53 |
5,871,475.58 |
6,025,796.04 |
PROFIT &
LOSS ACCOUNT
|
Revenue |
2012 |
2011 |
2010 |
|
|
|
|
|
|
Sales Income |
29,900,430.47 |
32,464,702.80 |
31,199,838.36 |
|
Gain on Exchange Rate |
21,714.28 |
9,976.36 |
22,456.36 |
|
Other Income |
- |
- |
556.72 |
|
Total Revenues |
29,922,144.75 |
32,474,679.16 |
31,222,851.44 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
25,176,383.44 |
27,834,152.18 |
26,670,496.03 |
|
Selling and Administrative Expenses |
3,818,728.12 |
3,942,080.12 |
4,093,947.39 |
|
Total Expenses |
28,995,111.56 |
31,776,232.30 |
30,764,443.42 |
|
Profit before Income
Tax |
927,033.19 |
698,446.86 |
458,408.02 |
|
Income Tax |
[137,624.94] |
[123,604.92] |
[56,660.64] |
|
Net Profit / [Loss] |
789,408.25 |
574,841.94 |
401,747.38 |
FINANCIAL
ANALYSIS
|
ITEM |
UNIT |
2012 |
2011 |
2010 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
15.58 |
3.07 |
2.12 |
|
QUICK RATIO |
TIMES |
4.21 |
0.61 |
0.78 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
59.61 |
53.78 |
37.51 |
|
TOTAL ASSETS TURNOVER |
TIMES |
4.73 |
5.53 |
5.18 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
61.53 |
55.43 |
44.90 |
|
INVENTORY TURNOVER |
TIMES |
5.93 |
6.59 |
8.13 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
13.60 |
11.08 |
13.55 |
|
RECEIVABLES TURNOVER |
TIMES |
26.83 |
32.95 |
26.94 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
3.64 |
14.95 |
27.22 |
|
CASH CONVERSION CYCLE |
DAYS |
71.50 |
51.56 |
31.24 |
|
|
|
|
|
|
|
PROFITABILITY
RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
84.20 |
85.74 |
85.48 |
|
SELLING & ADMINISTRATION |
% |
12.77 |
12.14 |
13.12 |
|
INTEREST |
% |
- |
- |
- |
|
GROSS PROFIT MARGIN |
% |
15.87 |
14.29 |
14.59 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
3.10 |
2.15 |
1.47 |
|
NET PROFIT MARGIN |
% |
2.64 |
1.77 |
1.29 |
|
RETURN ON EQUITY |
% |
13.28 |
13.84 |
11.22 |
|
RETURN ON ASSET |
% |
12.50 |
9.79 |
6.67 |
|
EARNING PER SHARE |
BAHT |
39.47 |
57.48 |
40.17 |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.06 |
0.29 |
0.41 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.06 |
0.41 |
0.68 |
|
TIME INTEREST EARNED |
TIMES |
- |
- |
- |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
(7.90) |
4.05 |
|
|
OPERATING PROFIT |
% |
32.73 |
52.36 |
|
|
NET PROFIT |
% |
37.33 |
43.09 |
|
|
FIXED ASSETS |
% |
(16.90) |
(27.43) |
|
|
TOTAL ASSETS |
% |
7.59 |
(2.56) |
|
ANNUAL GROWTH :
SATISFACTORY
An annual sales growth is -7.9%. Turnover has decreased from THB
PROFITABILITY :
SATISFACTORY
PROFITABILITY
RATIO
|
Gross Profit Margin |
15.87 |
Acceptable |
Industrial
Average |
30.18 |
|
Net Profit Margin |
2.64 |
Acceptable |
Industrial
Average |
4.54 |
|
Return on Assets |
12.50 |
Impressive |
Industrial
Average |
6.08 |
|
Return on Equity |
13.28 |
Impressive |
Industrial
Average |
11.06 |
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 15.87%. When
compared with the industry average, the ratio of the company was lower, this
indicated that company may have problems with control over its costs.
Net Profit Margin is the indicator of the company's efficiency in that
net profit takes into consideration all expenses of the company. A low profit
margin indicates a low margin of safety, higher risk that a decline in sales
will erase profits and result in a net loss. The company's figure is 2.64%.
When compared with the industry average, the ratio of the company was lower.
Return on Assets measures how efficiently profits are being generated
from the assets employed in the business when compared with the ratios of firms
in a similar business. A low ratio in comparison with industry averages
indicates an inefficient use of business assets. Return on Assets ratio is 12.5%, 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 13.28%, 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 : IMPRESSIVE
LIQUIDITY RATIO
|
Current Ratio |
15.58 |
Impressive |
Industrial
Average |
2.01 |
|
Quick Ratio |
4.21 |
|
|
|
|
Cash Conversion Cycle |
71.50 |
|
|
|
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 15.58 times in 2012, increased from 3.07 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 higher, indicated that company
was an efficient operator in a dominant position within its industry.
The Quick Ratio is a liquidity indicator that further refines the
current ratio by measuring the amount of the most liquid current assets there
are to cover current liabilities. The company's figure is 4.21 times in 2012,
increased from 0.61 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 72 days.
Trend of the
average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE :
EXCELLENT
LEVERAGE RATIO
|
Debt Ratio |
0.06 |
Impressive |
Industrial
Average |
0.47 |
|
Debt to Equity Ratio |
0.06 |
Impressive |
Industrial
Average |
0.90 |
|
Times Interest Earned |
- |
|
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.
Debt Ratio shows the proportion of a company's assets which are financed
through debt. The company's figure is 0.06 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 :
EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
59.61 |
Impressive |
Industrial
Average |
- |
|
Total Assets Turnover |
4.73 |
Impressive |
Industrial
Average |
1.34 |
|
Inventory Conversion Period |
61.53 |
|
|
|
|
Inventory Turnover |
5.93 |
Impressive |
Industrial
Average |
2.76 |
|
Receivables Conversion Period |
13.60 |
|
|
|
|
Receivables Turnover |
26.83 |
Impressive |
Industrial
Average |
2.01 |
|
Payables Conversion Period |
3.64 |
|
|
|
The company's Account Receivable Ratio is calculated as 26.83 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 55 days at the
end of 2011 to 62 days at the end of 2012. This represents a negative trend.
And Inventory turnover has decreased from 6.59 times in year 2011 to 5.93 times
in year 2012.
The company's Total Asset Turnover is calculated as 4.73 times and 5.53
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 Downtrend
Inventory Turnover Downtrend
Receivables Turnover Downtrend
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.05 |
|
|
1 |
Rs.101.65 |
|
Euro |
1 |
Rs.83.07 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
NIS |
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.