MIRA
INFORM REPORT
|
Report Date : |
04.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
INTERNATIONAL METAL AND JEWELRY CO., LTD. |
|
|
|
|
Registered Office : |
295 Moo 13,
Northern Region Industrial Estate,
T. Makuajae, A. Muang, Lamphun
51000 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.12.2013 |
|
|
|
|
Date of Incorporation : |
23.07.1998 |
|
|
|
|
Com. Reg. No.: |
0515541000144 |
|
|
|
|
Legal Form : |
Private Limited Company |
|
|
|
|
Line of Business : |
The subject is
engaged in manufacturing and exporting
various designs of
silver, brass [gold plated]
and resin jewelry
products, as follows: Silver with resin
ring, Silver with resin
bracelet, Silver with resin & stone pendant, Silver with
resin earrings, Silver with
resin cufflinks, Brass with
resin hot items |
|
|
|
|
No. of Employees : |
200 |
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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
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. 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
INTERNATIONAL
METAL AND JEWELRY CO., LTD.
SUMMARY
BUSINESS ADDRESS : 295 MOO 13,
NORTHERN REGION INDUSTRIAL ESTATE,
T. MAKUAJAE,
A. MUANG,
LAMPHUN
51000, THAILAND
TELEPHONE : [66] 53
552-683-6
FAX : [66] 53
552-687
E-MAIL ADDRESS : imaj41@imajthailand.com
REGISTRATION ADDRESS : SAME AS BUSINESS
ADDRESS
ESTABLISHED : 1998
REGISTRATION NO. : 0515541000144
TAX ID NO. : 3551004152
CAPITAL REGISTERED : BHT.
14,000,000
CAPITAL PAID-UP : BHT.
14,000,000
SHAREHOLDER’S PROPORTION : FOREIGN :
100%
FISCAL YEAR CLOSING DATE : DECEMBER 31
LEGAL STATUS : PRIVATE LIMITED
COMPANY
EXECUTIVE : MR. NICOLAS SCHEECQMANS,
BELGIAN
MANAGING DIRECTOR
NO. OF STAFF : 200
LINES OF BUSINESS : JEWELRY PRODUCTS
MANUFACTURER AND
EXPORTER
CORPORATE PROFILE
OPERATING TREND : STABLE
PRESENT SITUATION : OPERATING NORMALLY
REPUTATION : GOOD
WITH NORMAL BUSINESS
ENGAGEMENT
MANAGEMENT STANDARD : MANAGEMENT
WITH GOOD PERFORMANCE
HISTORY
The subject was
established on July
23, 1998 as
a private limited
company under the name
style INTERNATIONAL METAL AND JEWELRY CO.,
LTD. by foreign
groups. Its business objective
is to manufacture
wide range of
jewelry products for
exports. It currently
employs approximately 200
staff.
The subject is a
wholly owned subsidiary
of Crucement S.A.,
Luxemburg.
The subject’s registered
address was initially at 140 Moo
4, Northern Region
Industrial Estate, T. Banklang,
A. Muang, Lamphun 51000.
In 2009, its
registered address was
relocated to 295
Moo 13, Northern Region Industrial Estate,
T. Makuajae, A. Muang, Lamphun
51000, and this
is the subject’s
current operation address.
THE BOARD OF DIRECTOR
|
Name |
|
Nationality |
Age |
|
|
|
|
|
|
Mr. Nicolas Scheecqmans |
|
Belgian |
37 |
|
Mr. Bruno Andre Jean
Pavlovsky |
|
French |
51 |
AUTHORIZED PERSON
Both of the
above directors can
jointly sign on
behalf of the
subject with company’s
affixed.
MANAGEMENT
Mr. Nicolas Scheecqmans is
the Managing Director.
He is Belgian
nationality with the
age of 37
years old.
BUSINESS OPERATIONS
The subject is
engaged in manufacturing
and exporting various
designs of silver,
brass [gold plated] and
resin jewelry products,
as follows:
Silver with resin
ring
Silver with resin
bracelet
Silver with resin & stone pendant
Silver with resin
earrings
Silver with resin
cufflinks
Brass with resin
hot items
PURCHASE
Raw materials and
components are purchased
from suppliers both
domestic and overseas,
mainly in Switzerland,
India and France.
EXPORT
100% of the
products is exported
to U.S.A., Canada,
Japan, Hong Kong
and Europe.
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
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. :
[Lamphun branch]
EMPLOYMENT
The subject employs
approximately 200 staff.
LOCATION DETAILS
The premise is owned for
administrative office and
factory on 4,800
square meters of
area, at the
heading address. Premise
is located in
an industrial area.
COMMENT
Despite financial sluggish in
European countries, the
subject’s operating performance
was considered satisfactory
with an increase
in its sales
revenue and profit comparing
to the previous
year. Generally, exports
consumption remain strong,
while the business
in 2014 is
expanding steadily.
FINANCIAL INFORMATION
The capital was registered at Bht. 4,000,000 divided
into 40,000 shares
of Bht. 100 each
with fully paid.
The capital was
increased later as
follows:
Bht. 5,000,000
on November 12,
1998
Bht. 14,000,000
on August 16,
2004
The latest registered
capital was increased
to Bht. 14
million, divided into
140,000 shares of
Bht. 100 each with
fully paid.
THE SHAREHOLDERS LISTED WERE
[as at April
30, 2014]
|
NAME |
HOLDING |
% |
|
|
|
|
|
Crucement S.A. Nationality: Luxembourg Address : 65
Boulevard Grande-Duchesse Charlotte,
L-1331, Luxembourg |
139,998 |
99.999 |
|
Mrs. Debbie Ann Brown Nationality: American Address : 345
East 80 Street,
New York, U.S.A. |
1 |
= 0.001 |
|
Mr. Kevin Malanga Nationality: American Address : 57
Ridge Road, West
Orange, New Jersey,
U.S.A. |
1 |
|
Total Shareholders : 3
Share Structure
[as at April
30, 2014]
|
Nationality |
Shareholders |
No. of Share |
% Shares |
|
|
|
|
|
|
Thai |
- |
- |
- |
|
Foreign |
3 |
140,000 |
100.00 |
|
Total |
3 |
140,000 |
100.00 |
NAME OF AUDITOR & CERTIFIED
PUBLIC ACCOUNTANT NO.
Dr. Kiatniyom Kuntisook No.
4800
BALANCE SHEET [BAHT]
The latest financial figures published
as at December
31, 2013, 2012
& 2011 were:
ASSETS
|
Current Assets |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Cash and Cash Equivalents |
27,294,011 |
4,158,833 |
3,664,093 |
|
Trade Accounts &
Other Receivable |
43,773,555 |
35,561,544 |
18,804,306 |
|
Inventories |
14,083,362 |
13,096,093 |
12,639,811 |
|
Other Current Assets
|
1,051,928 |
305,152 |
273,737 |
|
|
|
|
|
|
Total Current Assets
|
86,202,856 |
53,124,622 |
35,381,947 |
|
Assets Held for Sales |
- |
- |
6,223,048 |
|
Fixed Assets |
41,712,086 |
38,430,261 |
18,038,747 |
|
Intangible Assets |
154,732 |
259,222 |
- |
|
Other Non-current Assets |
|
|
|
|
Cash at Bank pledged as a
Collateral |
319,361 |
310,210 |
78,000 |
|
Others |
296,969 |
33,500 |
105,709 |
|
Total Assets |
128,686,004 |
92,157,815 |
59,827,451 |
LIABILITIES &
SHAREHOLDERS’ EQUITY [BAHT]
|
Current
Liabilities |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Trade Accounts & Other
Payable |
35,669,053 |
30,920,687 |
5,798,739 |
|
Loan from Directors |
- |
- |
8,485,951 |
|
Accrued Income Tax |
4,863,203 |
136,196 |
- |
|
Current Portion of
Long-term Loans |
12,922,946 |
- |
449,399 |
|
Other Current Liabilities |
627,611 |
426,020 |
- |
|
|
|
|
|
|
Total Current Liabilities |
54,082,813 |
31,482,903 |
14,734,089 |
|
Long-term Loan from Related Company |
- |
12,922,946 |
- |
|
Employee Benefits Obligation |
2,596,044 |
2,223,511 |
4,764,667 |
|
Total Liabilities |
56,678,857 |
46,629,360 |
19,498,756 |
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Share capital : Baht 100
par value authorized, issued
and fully paid share
capital 140,000 shares |
14,000,000 |
14,000,000 |
14,000,000 |
|
|
|
|
|
|
Capital Paid |
14,000,000 |
14,000,000 |
14,000,000 |
|
Retained Earning -
Unappropriated |
58,007,147 |
31,528,455 |
26,328,695 |
|
Total Shareholders' Equity |
72,007,147 |
45,528,455 |
40,328,695 |
|
Total Liabilities & Shareholders' Equity |
128,686,004 |
92,157,815 |
59,827,451 |
PROFIT & LOSS ACCOUNT
|
Revenue |
2013 |
2012 |
2011 |
|
|
|
|
|
|
Sales Income |
306,847,215 |
191,381,124 |
75,087,370 |
|
Other Income |
|
|
|
|
Gain on Exchange Rate |
2,240,059 |
616,156 |
189,907 |
|
Others |
223,154 |
939,554 |
102,599 |
|
Total Revenues |
309,310,428 |
192,936,834 |
75,379,876 |
|
Expenses |
|
|
|
|
|
|
|
|
|
Cost of Goods
Sold |
243,844,736 |
157,712,611 |
51,777,012 |
|
Selling Expenses |
7,188,642 |
10,115,592 |
8,188,389 |
|
Administrative Expenses |
23,937,118 |
18,063,049 |
15,389,965 |
|
Total Expenses |
274,970,496 |
185,891,252 |
75,355,366 |
|
|
|
|
|
|
Profit before Financial Cost & Income
Tax |
34,339,932 |
7,045,582 |
24,510 |
|
Financial Costs |
[898,355] |
[701,528] |
[317,719] |
|
Profit before Income
Tax |
33,441,577 |
6,344,054 |
[293,209] |
|
Income Tax |
[6,962,885] |
[1,144,294] |
[412,104] |
|
|
|
|
|
|
Net Profit / [Loss] |
26,478,692 |
5,199,760 |
[705,313] |
FINANCIAL ANALYSIS
|
ITEM |
UNIT |
2013 |
2012 |
2011 |
|
|
|
|
|
|
|
LIQUIDITY RATIO |
|
|
|
|
|
CURRENT RATIO |
TIMES |
1.59 |
1.69 |
2.40 |
|
QUICK RATIO |
TIMES |
1.31 |
1.26 |
1.52 |
|
|
|
|
|
|
|
ACTIVITY RATIO |
|
|
|
|
|
FIXED ASSETS TURNOVER |
TIMES |
7.36 |
4.98 |
4.16 |
|
TOTAL ASSETS TURNOVER |
TIMES |
2.38 |
2.08 |
1.26 |
|
INVENTORY CONVERSION PERIOD |
DAYS |
21.08 |
30.31 |
89.10 |
|
INVENTORY TURNOVER |
TIMES |
17.31 |
12.04 |
4.10 |
|
RECEIVABLES CONVERSION PERIOD |
DAYS |
52.07 |
67.82 |
91.41 |
|
RECEIVABLES TURNOVER |
TIMES |
7.01 |
5.38 |
3.99 |
|
PAYABLES CONVERSION PERIOD |
DAYS |
53.39 |
71.56 |
40.88 |
|
CASH CONVERSION CYCLE |
DAYS |
19.76 |
26.57 |
139.63 |
|
|
|
|
|
|
|
PROFITABILITY RATIO |
|
|
|
|
|
COST OF GOODS SOLD |
% |
79.47 |
82.41 |
68.96 |
|
SELLING & ADMINISTRATION |
% |
10.14 |
14.72 |
31.40 |
|
INTEREST |
% |
0.29 |
0.37 |
0.42 |
|
GROSS PROFIT MARGIN |
% |
21.33 |
18.41 |
31.43 |
|
NET PROFIT MARGIN BEFORE EX. ITEM |
% |
11.19 |
3.68 |
0.03 |
|
NET PROFIT MARGIN |
% |
8.63 |
2.72 |
(0.94) |
|
RETURN ON EQUITY |
% |
36.77 |
11.42 |
(1.75) |
|
RETURN ON ASSET |
% |
20.58 |
5.64 |
(1.18) |
|
EARNING PER SHARE |
BAHT |
189.13 |
37.14 |
(5.04) |
|
|
|
|
|
|
|
LEVERAGE RATIO |
|
|
|
|
|
DEBT RATIO |
TIMES |
0.44 |
0.51 |
0.33 |
|
DEBT TO EQUITY RATIO |
TIMES |
0.79 |
1.02 |
0.48 |
|
TIME INTEREST EARNED |
TIMES |
38.23 |
10.04 |
0.08 |
|
|
|
|
|
|
|
ANNUAL GROWTH |
|
|
|
|
|
SALES GROWTH |
% |
60.33 |
154.88 |
|
|
OPERATING PROFIT |
% |
387.40 |
28,645.74 |
|
|
NET PROFIT |
% |
409.23 |
837.23 |
|
|
FIXED ASSETS |
% |
8.54 |
113.04 |
|
|
TOTAL ASSETS |
% |
39.64 |
54.04 |
|
ANNUAL GROWTH : EXCELLENT
An annual sales growth is 60.33%. Turnover has increased from THB
PROFITABILITY : SATISFACTORY
PROFIT ABILITY
RATIO
|
Gross Profit Margin |
21.33 |
Impressive |
Industrial Average |
18.48 |
|
Net Profit Margin |
8.63 |
Acceptable |
Industrial Average |
16.43 |
|
Return on Assets |
20.58 |
Satisfactory |
Industrial Average |
24.52 |
|
Return on Equity |
36.77 |
Satisfactory |
Industrial Average |
40.35 |
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 21.33%. 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 8.63%. 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. When compared with the
industry average, it was lower, the company's figure is 20.58%.
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 36.77%.
Trend of the average competitors in the same industry for last 5 years
Return on Assets Uptrend
Return on Equity Uptrend
LIQUIDITY : SATISFACTORY
LIQUIDITY RATIO
|
Current Ratio |
1.59 |
Acceptable |
Industrial Average |
3.14 |
|
Quick Ratio |
1.31 |
|
|
|
|
Cash Conversion Cycle |
19.76 |
|
|
|
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 1.59 times in 2013, decreased from 1.69 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 1.31 times in 2013,
increased from 1.26 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 20 days.
Trend of the average competitors in the same industry for last 5 years
Current Ratio Uptrend
LEVERAGE : IMPRESSIVE
LEVERAGE RATIO
|
Debt Ratio |
0.44 |
Acceptable |
Industrial Average |
0.32 |
|
Debt to Equity Ratio |
0.79 |
Impressive |
Industrial Average |
0.47 |
|
Times Interest Earned |
38.23 |
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 38.23 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 0.44 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 Downtrend
Times Interest Earned Stable
ACTIVITY : EXCELLENT
ACTIVITY RATIO
|
Fixed Assets Turnover |
7.36 |
Impressive |
Industrial Average |
- |
|
Total Assets Turnover |
2.38 |
Impressive |
Industrial Average |
1.49 |
|
Inventory Conversion Period |
21.08 |
|
|
|
|
Inventory Turnover |
17.31 |
Impressive |
Industrial Average |
3.43 |
|
Receivables Conversion Period |
52.07 |
|
|
|
|
Receivables Turnover |
7.01 |
Impressive |
Industrial Average |
2.25 |
|
Payables Conversion Period |
53.39 |
|
|
|
The company's Account Receivable Ratio is calculated as 7.01 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 30 days at the
end of 2012 to 21 days at the end of 2013. This represents a positive trend.
And Inventory turnover has increased from 12.04 times in year 2012 to 17.31
times in year 2013.
The company's Total Asset Turnover is calculated as 2.38 times and 2.08
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.61.75 |
|
|
1 |
Rs.100.06 |
|
Euro |
1 |
Rs.77.95 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SDA |
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.